Vivendi Is a Industry Wit Their Respec Sustainable

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Vivendi is a world leader in the entertainment industry with companies all in first-rank positions in their respective markets.

Universal Music Group > The world’s No.1 recorded music company, selling more than one out of every four albums worldwide, also holds a leading position in the digital music market.

Canal+ Group > France’s No.1 for premium and thematic channels and distribution of Pay TV; a major player in the financing, acquisition, and distribution of feature films in France and in Europe.

SFR > France’s No.2 mobile telecommunications operator. SFR owns 40.5% of Neuf Cegetel, France’s second-ranking fixed-line telecommunications operator.

Maroc Telecom > No.1 fixed-line and mobile telecommunications operator and Internet service provider in Morocco.

Vivendi Games > Global developer, publisher, and distributor of multiplatform interactive entertainment. No.1 worldwide for subscription massively multi-player online role-playing games.

Vivendi owns 20% of NBC Universal, a world leader in media with activities in film and television production, television channel distribution and theme-park operations.

Sustainable No. 1 in music No. 1 in pay television No. 2 mobile No. 1 fixed-line and No. 1 worldwide World entertainment worldwide in France telecommunications mobile operator for online games leader Vivendi Vivendi Development operator in France and Internet service Head Office New York Office provider in Morocco 42, avenue de Friedland 800 Third Avenue 100% 100% 56% 100% 20% 75380 Paris cedex 08 New York, NY 10022 Report 2006-2007 40.5% of n9ufcegetel 51% France USA Telephone: + 33 (0)1 71 71 10 00 Telephone: + 1 212 572 7000 Fax: + 33 (0)1 71 71 10 01

www.vivendi.com RDDAN-2006-2007 Percentages refer to Vivendi’s stake in each company as of April 30, 2007. The Canal+ Group owns 65% of Canal+ France as of January 4, 2007. Vivendi is a world leader in the entertainment industry with companies all in first-rank positions in their respective markets.

Universal Music Group > The world’s No.1 recorded music company, selling more than one out of every four albums worldwide, also holds a leading position in the digital music market.

Canal+ Group > France’s No.1 for premium and thematic channels and distribution of Pay TV; a major player in the financing, acquisition, and distribution of feature films in France and in Europe.

SFR > France’s No.2 mobile telecommunications operator. SFR owns 40.5% of Neuf Cegetel, France’s second-ranking fixed-line telecommunications operator.

Maroc Telecom > No.1 fixed-line and mobile telecommunications operator and Internet service provider in Morocco.

Vivendi Games > Global developer, publisher, and distributor of multiplatform interactive entertainment. No.1 worldwide for subscription massively multi-player online role-playing games.

Vivendi owns 20% of NBC Universal, a world leader in media with activities in film and television production, television channel distribution and theme-park operations.

www.vivendi.com RDDAN-2006-2007 Percentages refer to Vivendi’s stake in each company as of April 30, 2007. The Canal+ Group owns 65% of Canal+ France as of January 4, 2007. Sustainable development key figures* 2006

ECONOMIC INDICATORS Revenues: 20,044 million euros* Web sites: EBITA: 4,370 million euros* Vivendi: www.vivendi.com * Including non-strategic and corporate activities and elimination of inter-segment operations. ● UMG 225%5% Universal Music Group: www.umusic.com Breakdown of revenues for 2006 (in million euros) ● Canal+ Group 118%8% Canal+ Group: www.canalplusgroupe.com ● SFR 443%3% INDICATORS RELATED TO CONTENT PRODUCTION by business unit SFR: www.sfr.fr ● Maroc Telecom 110%0% UMG 4,955 Maroc Telecom: www.maroctelecom.ma AND DISTRIBUTION (December 2006) ● Vivendi Games 44%% Canal+ Group 3,630 Vivendi Games: www.vivendigames.com SFR 8,678 More than billion euros invested in content 2 Maroc Telecom 2,053 Conception and editorial: Vivendi Games 804 ● France 662%2% Vivendi – Sustainable Development Department ● Rest of Europe 110%0% 4,000 artists under contract with Universal Music Group in the world by geographical area ● United States 112%2% France 12,372 ● Morocco 110%0% Contact: Rest of Europe 2,081 More than 50 labels within Universal Music Group, representing the diversity of musical repertoires ● Rest of world 66%% Pascale Thumerelle, United States 2,448 Vice-President, Sustainable Development Morocco 1,960 58% of first and second French-initiative films received a contribution from Canal+ Rest of world 1,183 Vivendi’s 2006-2007 Sustainable Development Report is available upon request (see the back cover for the group’s contact details). The electronic version of this report is also available on the group’s Web site under the Sustainable With more than titles and film-producing countries represented, 5,000 55 SOCIAL INDICATORS Development section. StudioCanal owns the largest catalogue of films in Europe Group headcount: 34,694 employees We appreciate your comments and remarks. Please do not hesitate to send them by e-mail management personnel 43% to [email protected] or by mail to the address of the head office. i>TELE, France’s No.1 all-news channel: 10 million viewers weekly in January 2007 38% women in the total headcount 34% women among management personnel ● UMG 222%2% ● Canal+ Group 111%1% Breakdown of group headcount at December 31, 2006 Creation and production: Canal+ Horizons, No.1 French-language pay-TV channel in sub-Saharan Africa ● SFR 223%3% by business unit ● Maroc Telecom 333%3% with more than 100,000 subscribers UMG 7,869 ● Vivendi Games 110%0% Canal+ Group 3,699 ● Corporate 11%% SFR 8,014 Photo credits: Vivendi photo library (Alain Benainous, Jean-François de Roubaix, Hounsfield, and E. de Malglaive of Gamma, More than 70,000 subscribers to SFR‘s TV offering (CanalSat, TPS, and SFR bundles) Maroc Telecom 11,259 Vivendi Games 3,567 ● France 338%8% Denis Rea, Olivier Roy); Universal Music Group photo library (Kasskara/Deutsche Grammophon, Andreas Reeg); Corporate 271 ● Europe Canal+ Group photo library (Daniel Bardou, Maxime Bruno, Marc Dozier, Xavier Lahache); Canal+ Horizons 4 million music titles downloaded on the SFR Music platform (France excluded) 99%% Other 15 Ivory Coast photo library (Ambroise Koffi); SFR photo library (Alerte Orange, Philippe Castano, Getty, ● North America 115%5% Thierry Gonzalez, David Shroeder/Gamma); Maroc Telecom photo library (Saïd Chidmi); Vivendi Games photo by geographical area ● South and Central America 1% Maroc Telecom, Morocco’s No.1 Internet service provider library (Grégoire Gabalda); La Voix de l’Enfant; Matthieu Mallet, PH Prod; Malik Sidibe, Onyx Films. France 13,243 ● Asia-Paciﬁ c 44%% Europe (France excluded) 3,226 ● Africa 33% Captions of the following illustrations (from left to right): 5,006 Menara, No.1 Internet portal in Morocco and the leading French-language portal in Africa, North America Pages 04-05: Visual from the album by Mika, a Universal Music Group artist. Cannes Festival (palm motif). South and Central America 350 SFR has new offerings to respond to the growth in the uses of mobile telephony and to its customers’ expectations. with 3 million visitors per month Asia-Pacific 1,445 Africa 11,424 Pages 12-13: General shareholders’ meeting, April 19, 2007, Vivendi’s financial results. Employees meeting, Canal+ Group marketing team. Maroc Telecom’s participation in operation “Clean Beaches.” More than 700 game titles in the Vivendi Games catalogue Pages 42-43: Vivendi, for whom the protection of minors is a major societal issue, is particularly vigilant ENVIRONMENTAL INDICATORS in analyzing the impact of new uses made possible by technical changes. The creativity of the Burkinabè Water consumption: 581.8 thousand cubic meters 8.5 million paying customers to the massively multi-player online role-playing game World of Warcraft (as of March 2007) sculptor Ali Nikiema is honored by the magazine Afrik’Art, a Canal +Horizons broadcast devoted to African Electricity consumption: 404,914 thousand kilowatt-hours cultures. Journalist Charlotte Le Grix de la Salle offers an international vision of the news on Canal+. CO emissions: million kilograms 2 80.4 Printed in France on Symbol Free Life ISO 9001 certified recyclable paper Sources of CO2 emissions Manufactured in Austria (plant ISO 14001 environment certified) Waste production: 3,548.8 tons, ● Electricity 773%3% ● Natural gas Completed April 30, 2007 hazardous and special waste 465.6 tons 33%% ● Vehicles 23% 343 134 763 RCS Paris non-hazardous waste 2,837.1 tons ● Other * The sustainable development indicators are given in their entirety on pages 58 to 63. waste from electrical and electronic equipment 245.5 tons (petroleum fuels) 11%% Sustainable development key figures* 2006

A twofold demand ...... 06 Corporate responsibility ...... 06 Specific issues ...... 06 04 Results and progress areas ...... 07

Standards and guidelines ...... 08 Vivendi’s formal commitments...... 08 The Compliance Program...... 08 The Charters ...... 08 The Program of compliance with environmental, health, and workplace safety standards ...... 08 The European context ...... 09 Sustainable development in the Treaty on European Union...... 09 The European Union strategy for sustainable development...... 09

Implementation of the sustainable development policy...... 10

Sustainable development indices and ratings...... 11

OUR CORPORATE RESPONSIBILITY

ECONOMIC responsibility ...... 14 Outreach to the next generation ...... 32 Governance ...... 14 Apprenticeship...... 32 A dual corporate governance structure ...... 14 Attraction...... 33 12 Internal control ...... 16 Integration of young people from disadvantaged areas ...... 33 Attentiveness to shareholders...... 17 Social ties...... 34 Performance...... 18 Contributing to the development of employment...... 34 Group strategy ...... 18 Facilitating employee citizenship and solidarity ...... 34 Results and strategic priorities of the business units...... 20 Ending isolation ...... 35 Attentiveness to customers ...... 22 Innovation ...... 24 ENVIRONMENTAL responsibility ...... 36 Investing in creation ...... 24 Transparency approach ...... 36 Promoting content ...... 25 Procedures for reporting on environmental indicators...... 36 Internal audits ...... 36 SOCIAL responsibility ...... 26 The certification and evaluation process...... 37 Supporting employees ...... 26 Shared objectives ...... 38 Social dialogue ...... 26 The energy issue ...... 38 Sharing skills and expertise at group level ...... 27 Waste electrical and electronic equipment ...... 39 Employability and skills development at Vivendi S.A...... 27 Relations with suppliers...... 39 Decentralized management of human resources ...... 28 Health and mobile telephony ...... 40 Equal opportunity ...... 30 Vigilance and dialogue ...... 40 The group’s commitment ...... 30 SFR ...... 40 Changing behaviors ...... 30 Maroc Telecom...... 41

OUR SPECIFIC ISSUES as a content producer and distributor

Protection of minors ...... 44 Promoting cultural diversity ...... 48 42 Vivendi’s commitment ...... 44 Encouraging diversity in creation ...... 48 Attentiveness to the concerns of civil society ...... 44 Diversity in music repertoires ...... 48 The Internet Confidence Charter ...... 45 Diversity of cinematic expression ...... 49 Ethics rules ...... 45 Strengthening production capacities: Mobile telephony ...... 45 Supporting local talent in Africa ...... 50 Video games ...... 45 Musical talent ...... 50 Awareness actions ...... 46 Cinema talent ...... 51 Video games: Content descriptions and age categories ...... 46 Promoting heritage ...... 51 Mobile telephony: Informing parents ...... 46 Music: Informing adolescents ...... 46 Sharing knowledge ...... 52 Parental control ...... 46 Quality and pluralism of content ...... 52 Controlling use ...... 46 Encouraging public awareness of sustainable development . . . . 53 Unsuitable content ...... 47 Encouraging dialogue between cultures ...... 55 New uses ...... 56 New uses… ...... 56 … Put to work for sustainable development ...... 57

2006 sustainable development indicators ...... 58 Opinion of the external auditor ...... 64 A conversation with Jean-Bernard Lévy, Chairman of the Management Board and Chief Executive Officer

How would you define your commitment department, working in liaison with a network Hemisphere can be strengthened locally and to sustainable development? of experts from civil society, work intensively promoted to ensure that they are known and to ensure that this responsibility is taken into recognized beyond their borders. How can Sustainable development is especially consideration. These issues are complex and Vivendi contribute to encouraging diversity meaningful to a group like ours as a producer require a range of points of view and of skills. of artistic expression? and distributor of content. Our goal is to make In the age of the digital revolution, new uses it possible for present and future generations The group’s business units are highly aware of technology can involve certain risks, but at to satisfy their desire for entertainment while of these issues, which are essential to their the same time they offer vast opportunities. satisfying their curiosity, developing their activity, whether it’s film, music, games, news They encourage initiatives and provide new talents, encouraging exchange between them programming, or multimedia services. forms of learning that contribute to young and developing their awareness of others, consumers’ personal fulfillment. Vivendi needs to continue its reflection and informing them about the different in this area, taking into consideration the sustainable development issues. Can you be more specific about the expectations of its different partners: artists, issues related to the promotion of Our commitment to sustainable development customers, regulatory bodies, national and cultural diversity? is based on a clear objective – affirming European institutions, and the academic our company’s responsibility over time. Promoting cultural diversity is a major world. Sustainable development implies that we challenge for Vivendi, and we do it by What is your definition of “sharing conceive of our strategy in three dimensions pursuing three main objectives: encouraging knowledge”? (economic growth, social cohesion, and creation in all its diversity, contributing to environmental protection), with a vision strengthening production capacities for the As a producer and distributor of content, we that takes into account the middle and long development of local talent, and preserving have an obligation to reflect on the influence terms. and disseminating heritages. we can have on our different audiences. That requires us to be especially vigilant about Concretely, how does Vivendi define I’ll give you two examples of areas we’re the quality and the pluralism of the content its strategy? working in. The first has to do with the new we deliver and to contribute to raising public technologies. How will the new offerings In 2003 Vivendi defined three specific areas: awareness of sustainable development, and of content and services stimulated by the protection of minors, promotion of cultural take pains to make sure that our messages combination of mobility and the availability diversity, and sharing of knowledge. promote mutual understanding between of broadband (digitization of content, video cultures and openness towards others. We are particularly vigilant towards our young on demand, mobile telephony, personal audiences. Mobile telephones, the Internet, television, etc.) contribute to promoting What progress are you making in games, and films can be vehicles for content cultural diversity? dealing with these specific issues? of a sensitive nature or lead to inappropriate The other area involves how cultural We carry on in-depth discussions of these modes of consumption. The business expressions of countries in the Southern issues within the group, in particular at the units and our Sustainable Development 02 meetings of the Sustainable Development Committee, which brings together representatives of the functional divisions at the corporate level and persons in charge of these topics within the subsidiaries. Outside observers (rating agencies, financial institutions, analysts, etc.), through their interest, their comments, and their questions, also contribute to enriching our process of Our commitment reflection. to sustainable development As we strengthen our capacity for innovation by launching new content and new offerings that respond to our customers’ needs, we is based on a clear objective must also be attentive to all the stakeholders. That is why I have begun a cycle of meetings – affirming our company’s with experts from civil society: NGOs, national and European public authorities, industry responsibility over time. organizations, and representatives of the academic and research communities. What is your involvement as Chairman of the Management Board? The Management Board is the decision-making body best able to analyze the implementation of our sustainable development policy and place this sustainable development approach at the heart of the group’s strategy. As Chairman of the Management Board and CEO, it is my responsibility to promote that approach, one that is fully compatible with management of our risks and which can be a stimulus to Vivendi’s performance.

06/11 a whole. content, canhaveonsocietyas as aproduceranddistributorof impact thatagrouplikeours, be especiallyvigilantaboutthe management ofourrisksandto a comprehensivevisionof This approachleadsustoadopt is beingbuiltintoperspective. which Vivendi’slong-termfuture social, andenvironmental–upon putting thethreepillars–economic, development isoneofresponsibility, Vivendi’s approachtosustainable wfl ead 6 8 11 10 Sustainable development indicesandratings Implementation of thesustainabledevelopmentpolicy Standards andguidelines A twofolddemand

05 OUR APPROACH A twofold demand A twofold demand

Vivendi’s commitment to sustainable development is the result of a twofold demand: taking all the dimensions of its corporate responsibility into consideration, and dealing with the specific demands made on a producer and distributor of content. This involves Vivendi’s being accountable for its values and its responsibilities regarding all its partners – employees, shareholders, customers, suppliers, institutions, and civil society.

CORPORATE SPECIFIC ISSUES RESPONSIBILITY In 2003, when Vivendi re-centralized The Vivendi group’s approach to its corporate its strategic business units, sustainable responsibility covers all dimensions – development issues specific to the group economic, social, and environmental – of were defined: protection of minors, cultural its business activities and takes the form of diversity, sharing knowledge, and more a comprehensive, cross-cutting approach to generally the new uses promoted by the rapid managing risks. development of technologies (broadband and mobility). This approach is based on formal commitments such as the Compliance Program, the group’s The protection of minors is a major issue for Charters (Values Charter, Safety at Work society. Mobile telephones, the Internet, Charter, Fundamental Social Rights Charter, video games, films, etc., can be vehicles for Supplier Relations Charter, Environment content of a sensitive nature or lead to modes Charter, Internet Confidence Charter), and the of consumption that are unsuitable for young Program of compliance with environmental, people. Taking this issue into consideration health, and workplace safety standards. has led to a cross-cutting mobilization of the business units, in liaison with Vivendi’s Among the main axes of our approach to Sustainable Development department. corporate responsibility are encouraging sharing of risks through mobilization of our Cultural diversity is another major issue teams and financial, commercial, and technical for Vivendi: giving present and future synergies, evaluating the impact of new uses generations the means to satisfy their of technology on consumption of content curiosity, encouraging diversity in musical and services, and increased awareness of repertoires, promoting diversity of cinematic and accountability for environmental issues expression, and protecting and disseminating related to our business activities. the artistic heritage are concerns shared by all the group’s business units. Vivendi also has the goal of encouraging the sharing of knowledge, and that implies high standards of quality in content, promoting audiences’ awareness of sustainable development issues, and developing dialogue between cultures. Finally, given the extremely rapid pace of technological changes, the potential impact of the new uses promoted by the convergence of communication networks is an area Vivendi is studying, developing a network of experts within civil society to build the broadest possible vision of this issue.

06 Corporate responsibility RESULTS ANDPROGRESSAREAS

Specific issues promotion ofculturaldiversity sharing knowledge protection ofminors economic responsibility social responsibility environmental responsibility ( • buildinganetworkofexpertsfromcivilsociety ( by VivendiinMalipartnershipwithUNESCO through thetrainingprogramimplemented capacities bypromotinglocaltalentsinAfrica • contributingtostrengtheningproduction cultures) withVivendi’spartners( development, promotionofdialoguebetween of content,raisingpublicawarenesssustainable • promotionofthisissue(qualityandpluralism Music Jazzartist( author-composer-performer SalifKeita,aUniversal Festival, inBamako,underthepatronageofMalian • supportforthefirsteditionofYoungTalents and industryorganizations( of nationalandEuropeanpublicauthorities,NGOs, ( • buildinganetworkofexpertsfromcivilsociety ( • internalcontrol:creationofaRisksCommittee on theirmarkets( cinema, mobile,Internet,andgames)areleaders • alltheactivitiesofgroup(music,television, • adjustednetincomeincreasedby18%. Management Board Jean-Bernard Lévy,ChairmanofVivendi’s • organizingameetingbetween Development Committee( and intheframeworkofSustainable Program forcorporateemployees • informationactionsabouttheCompliance ( institutions, amongthemostrepresentative) (more than10FrenchandEnglish-speaking with Vivendi’ssustainabledevelopmentpolicy holding meetingstofamiliarizethem • attentivenesstoinvestorsandanalysts, ( • supportingemployeesindevelopingtheirskills ( to EqualEducationalOpportunity] [Vivendi signstheCharterofBusinessCommitment • consolidatingoutreachtoyoungergenerations • certificationandinspectionprocess( protocol ( • introductionofnewindicatorsinthereporting and 2sitevisits,in2006)( • deploymentofinternalaudits(6 of employment( 2005) andcontributiontodevelopment (462 in2006atgrouplevelcomparedto367 • developmentofpartnershipswithcivilsociety objectives ( • exchangesontheadoptionofnewperformance ! ! ! ! ! ! ! p.10). p.50). pp.10and44). p.16). pp.11and17). pp.26-29). pp.30,32-33). ! ! p.36). pp.38-39). ! ! p.34). ! 06RslsProgressareasfor2007 2006 Results pp.18-21). pp.50and51). and CEO,representatives ! ! p.8). ! pp.36-37). p.10). ! pp.11;52-57). ! p.37). to Vivendi’svariouspartners. • contributetorelayingawareness-raisingefforts of theManagementBoardandCEO. from civilsocietywiththeChairman • repeatthemeetingofrepresentatives Union’s “SaferInternetPlusprogram.” the soundengineercareertrackinMali. • continuethetrainingprogramtoconsolidate and CEO. and theChairmanofManagementBoard bodies, theFrenchNationalLibrary,etc.) the EuropeanCommission,artists,regulatory of civilsociety(FrenchandEuropeanlegislators, • organizeameetingbetweenrepresentatives for “Internetsanscrainte” • participateinthesteeringcommittee development policyto15institutions. community andpresentVivendi’ssustainable • continueexchangeswiththefinancial of theRisksCommittee. development bycontributingtothework • strengthencontrolofrisksrelatedtosustainable • strengthenthepositionsofallbusinessunits. to theCanal+/TPSoperation). 2.7 billioneuros(afterthetransitioncostsrelated • attainanadjustednetincomeofatleast restructurings. impacted byunemploymentandindustrial to contributethecreationofjobsinregions • fulfillourcommitmentstothepublicauthorities encourage theirintegrationintotheworldofwork. • continueactionsaimedatyoungpeopleto of thegroup’semployees. • continuetodeveloptheskillsandemployability policy. awareness ofVivendi’ssustainabledevelopment • raisetrade-unionandpersonnelrepresentatives’ of conductdefinedintheComplianceProgram. • increaseemployees’understandingoftherules in theserviceofsharingknowledge. of newtechnologiesfordistributioncontent and representativesofcivilsocietyonthe topic of theManagementBoardandCEO • holdameetingwiththeChairman objectives specifictoourbusinessunits. • continueourreflectionondefiningperformance at Vivendi’scorporateheadquarters. • begintheEMAScertificationprocess protocol withinthesubsidiaries. • strengthentheextensionofreporting and Canal+Poland. • extendinternalauditsatMarocTelecom

as partoftheEuropean 07 OUR APPROACH Standards and guidelines Standards and guidelines

VIVENDI’S FORMAL workplace safety standards – standards set COMMITMENTS by the International Labor Organization or standards resulting from national legislation, The Compliance Program when the latter provide greater protection. Fundamental Social Rights Charter The Compliance Program, adopted in 2002 This Charter reiterates the group’s resolute and updated in 2005, formally states Vivendi’s commitment to respecting fundamental commitments in the form of rules of conduct rights as defined by the International Labor covering employees’ rights, fairness and Organization: prohibition of child labor, protection of information, prevention of prohibition of forced labor of detained persons conflicts of interest, commercial ethics, or convicts, and prohibition of discrimination protection of the goods and resources based on union membership. belonging to the group, financial ethics, and Supplier Relations Charter respect for the environment. This Charter sets down the principles In October 2006, a presentation of the updated governing the process of procurement and program was organized by the General Counsel purchasing for the group’s companies, to at Vivendi’s corporate headquarters, attended ensure objectivity and appropriateness in by Jean-Bernard Lévy, Chairman of the selecting a supplier or service provider. Management Board and CEO, and the senior Environment Charter executives. During the session, the Human This Charter enumerates Vivendi’s commitments Resources department, the Audit department, to promoting respect for the environment in and the Sustainable Development department all its business activities. presented the implications of the Compliance Internet Confidence Charter Program for their respective areas. The Internet Confidence Charter sets down the principles to be followed and the concrete Respect for the rules of conduct is a measures to be applied in the context of the condition for belonging to the Vivendi group. group’s Internet activities. Monitoring structures and procedures are in place to see if these rules are applied in all The Program of compliance group companies, coordinated by specially with environmental, health, authorized Compliance Program officers. and workplace safety standards An evaluation report on their implementation In order to fulfill its corporate responsibility within the group’s entities is drawn up each regarding the environment and comply with year by the General Counsel and submitted best practices of corporate governance, to the Audit Committee. The fourth edition of Vivendi adopted a Program of compliance with this evaluation report was presented to the environmental, health, and workplace safety Audit Committee on February 28, 2007. standards in 2000. The Sustainable Development The Charters department, in liaison with the General Counsel, contributes to coordinating and applying this Vivendi has defined its values and program. The program’s main goals are: Vivendi’s Compliance commitments regarding its partners in six ■ Provide assurances of compliance to the Program Charters accessible on the group’s intranet. group’s management; Values Charter ■ Conduct an audit program in order to Being a worldwide group involves not only pooling financial resources, techniques, and Ethics, priority to the consumer, creation identify any areas of non-compliance at know-how, but also cohesion among our teams, of value, teamwork, social responsibility, various group sites, determine corrective who – beyond their spirit of open-mindedness to all cultural diversity, creativity. measures, and ensure they are applied; cultures – believe in the same values and share the same ambition of contributing, together, to sustainable Safety at Work Charter ■ Relay the group’s environmental commitments development. This Charter expresses Vivendi’s commitment on the ground and identify best practices. to vigilance with regard to observation of

08 to sustainabledevelopment. public andprivateentitiesintheirapproaches pervades thereflectionandpracticesof it isusefultorecallhowtheEuropeancontext instituting theEuropeanEconomicCommunity, of theTreatyRomeMarch25,1957 On theoccasionoffiftiethanniversary parallel progress inotherfields.” in economicintegration areaccompaniedby to implementpolicies ensuringthatadvances cohesion andenvironmentalprotection, and of theinternalmarketand reinforced within thecontextofaccomplishment principle ofsustainabledevelopment for theirpeoples,takingintoaccount to promoteeconomicandsocialprogress member StatesoftheUnion:“Determined Treaty onEuropeanUnionratifiedbythe27 precisely inthePreambleofcurrent revision ofthetreaties,andismentioned This goalwasstrengthenedateachsuccessive eliminate thebarrierswhichdivideEurope.” of theircountriesbycommonactionto ensure theeconomicandsocialprogress “… signatories ofthesixmemberStatesto Rome expressedthedeterminationof In 1957,initsPreamble,theTreatyof actions andpoliciesoftheUnion. Treaty onEuropeanUnion,andconcernsall is afundamentalobjective,setdowninthe development, thatsustainabledevelopment Union’s strategyinfavorofsustainable at thetimeofitsexaminationEuropean The EuropeanCouncilrecalled,inJune2006, wider globalcontextofprogressinghumandevelopment,especiallyifwelookatthegreatpotentialeco-technologiesandmit environmental protection. needed toachievesustainabledevelopmentinallitsdimensions:economicprosperity,socialequityandcohesionwithrespectf that aresustainable–carbonneutral. is whatIcallsmartgrowth. and itrequiresactionleadership.Togocarbonneutralinvestinaloweconomyshouldbekeyobjectiveall Sustainable developmentin I believethattheopportunitiescanbefoundinasustainablebusinessapproacharetremendous,bothfromEuropeanpers Today theclimatehasbecomehardcorepoliticsandhowweacttodaywillindeeddetermineourownchildren’sverynear The truthisthattheseissuesrequireactionfromallofus-irrespectivethedifferentroleswehaveinsociety.choi Media companiescanmorespecificallycontributetotheknowledgesocietybyactivelytakingaresponsibilityforcommunicating Business, inparticular,hasaspecialroletoplaybyadaptingproductionprocessesmakethemmoreefficient,lessresource the TreatyonEuropeanUnion THE EUROPEANCONTEXT Margot Wallström,Vice-PresidentoftheEuropeanCommission the world,basedonpeace,securityandfreedom. and environmentalprotectionmustgohandinhand.Itencouragestheestablishmentdefendsstabilityofdemocraticinst Treaty andintegratedintopolicy-makingatalllevels.Itrecognizeseconomicdevelopment,socialcohesion and expectationsoffuturegenerations.ItisanoverarchingobjectivetheEuropeanUnionsetoutin private-public partnerships. to promotecoherencebetweenlocal,regional,nationalandglobalactions,enhancethesocialdialogue,corporateres and stakeholdersmeetingsontheEuropeanUnionsustainabledevelopmentstrategy,todisseminatenewideasexchangebestpr The Commissionmainstreamssustainabledevelopmentinitsinformation,awareness-raisingandcommunicationactivities.Itorgan Sustainable development is a vision for the future and a long-term strategy to secure the needs, hopes Sustainabledevelopmentisavisionforthefutureandlong-termstrategytosecureneeds,hopes and the In celebrationofthe50 leading totheformalization,in2001,ofan to coverthesedifferentareasofaction, Several Europeanprogramshavebeenadopted by thePopakademieandMU:ZONE,withsupportofUniversalMusicGermany,aretaking partinseveraloftheseconcerts. Parliament isappearingin50citiesGermanybetweenMarch25andJune25,2007.Groups ofyoungEuropeanmusicians,trained respecting culturaldiversity.” protection inapeacefulandsecureworld, and territorialcohesionenvironmental level ofeducation,healthprotection,social economy withfullemploymentandahigh generations. Tothatenditpromotesadynamic and well-beingonEarthforpresentfuture continuous improvementofthequalitylife and equalopportunitiesforall.Itaimsatthe for fundamentalrights,includingfreedom equality, solidarity,theruleoflawandrespect based ontheprinciplesofdemocracy,gender capacity tosupportlifeinallitsdiversityandis Union: “ItisaboutsafeguardingtheEarth’s development includedintheTreatyonEuropean the contoursofobjectivesustainable The EuropeanCouncil,inJune2006,specified The EuropeanUnionstrategy for sustainabledevelopment th anniversary of the Treaty of Rome, a musical tour sponsored by the European Commission and the European anniversaryoftheTreatyRome,amusicaltoursponsoredbyEuropeanCommissionand theEuropean consumption ofservicesandcontent. the digitalrevolutiononnewusesaffecting sharing ofknowledge,andtheimpact of minors,promotionculturaldiversity, regarding futuregenerations:protection echo thisconstantconcernforresponsibility in thedefinitionofitsspecificissues,which its approachtosustainabledevelopmentand commitment. Vivendiincludesthisvisionin contribute totheimplementationofthat private playerswho,intheirrespectiveareas, These Europeanobjectivesarerelayedbythe States intheirnationalstrategy. strategy, enactedbyeachoftheMember in 2006,anewsustainabledevelopment social challenges,theEuropeanUniondefined, environmental situationandeconomic development. Giventheaggravationof initial EuropeanUnionstrategyforsustainable ce isourstomake. managementandgovernancestrategies.That -intensive, andproducinggoodsservices or fundamentalrightsandculturaldiversity, igating climatechange. future.Wehaveanenormousresponsibility pective ofcompetitivenessbutalsoina tocitizensthekeycompetences ponsibility and itutions across ises events ises events actices,

09 OUR APPROACH Implementation of the sustainable development policy Implementation of the sustainable development policy

The creation of the Management Board, a collegial management body that includes the CEOs of Vivendi’s subsidiaries, has contributed to the implementation of the sustainable development process throughout the group.

The Sustainable Development department, Vivendi publishes a Sustainable Development which reports to the Executive Vice-President, report each year. For the fifth consecutive Communications and Public Affairs, who is a year, the procedures used for collecting, member of the group’s Executive Committee, validating and consolidating the social and manages the process and coordinates its environmental performance indicators for the monitoring within the subsidiaries. In liaison 2006-2007 Sustainable Development Report with the General Counsel, it contributes to the were analyzed by KPMG, one of the group’s coordination and application of the Program external auditors. of compliance with environment, health, Each year, this Report is sent to members and workplace safety standards adopted of the French legislature, members of the by Vivendi in 2000. It also contributes to European Parliament, representatives of increasing familiarity with the Compliance civil society, shareholders, financial analysts, Program within the group. rating agencies, and journalists. The Sustainable Development department A special section of Vivendi’s World Wide Web is backed by a Sustainable Development site (www.vivendi.com) informs site visitors Committee, instituted in 2003. This Committee about the group’s approach to sustainable comprises persons dedicated to questions development and lets stakeholders leave related to sustainable development in comments and questions. the business units and representatives of several functional divisions of the head office In 2006, Jean-Bernard Lévy, Chairman of (General Counsel, Finance, Audit, Human the Management Board and Chief Executive Resources, Corporate Communications and Officer, began a series of targeted meetings Public Affairs). It meets six times yearly. with experts from civil society to share with Each Committee session is an opportunity them an analysis of the development of the for participants to extend their knowledge group’s activities in the light of sustainable by inviting experts, representatives of civil development criteria. The first such meeting society, and French and European institutions was devoted to the protection of minors, and like the HALDE (a French supervisory the second to cultural diversity. body for fighting against discrimination and promoting equal opportunities), the Ademe (the French Environment and Energy Management Agency), the Caisse des dépôts et consignations, the École nationale d’administration, and the European Commission. The Committee is also a forum for discussing the group’s objectives and disseminating the best practices of the various business units in areas such as protection of minors, cultural diversity, skills management, energy savings, waste from electrical and electronic equipment, reporting procedures for sustainable development indicators, etc.

10 Sustainability Index (ESI) established byEthibel. Index established (ESI) Sustainability agency, Ethibel andthe rating Vigeo bythe indexcompiled Eurozone ASPI the index, development sustainable international Global FTSE4Good inthe israted Vivendi indices andratings Sustainable development Goldman Sachs:Europe Media:ESGframework-introducingoursustainable investingframeworkformediahttp://www.unepfi.org/wo Jean-Michel BonamyandMarcFox,GlobalInvestmentResearch –GoldmanSachsInternational a commitmenttoreducing itsenvironmentalfootprintwith energyconsumptionandgreenhouse gas emissionsintensitybelowindus through thecreationanddistributionof contentbypromotingawarenessofenvironmental,humanrightsandpublichealth issues for sustainabilityperformanceearnthe companyafirstquartilescoreonsocialleadership.Vivendihasdemonstrated acommitm track recordofreportingenvironmental andsocialissuestostakeholderswithassuranceofsustainabilityreportingprocedures media companies. issues simplyassuperiormanagement ofcompanyassets. Given thattwo-thirdsofthesector’sasset baseiscomprisedofintangibles,andalmosthalfthecostsrelatetohuman and in thesector.TheESGframeworkisdesignedtoquantifyperformanceonenvironmental, socialandgovernancecriteria,thematic GOLDMAN SACHS CARBON DISCLOSUREPROJECT ETHIBEL VIGEO FTSE Sustainable developmentindicesandratings Vivendi scoresinthefirstquartileoncorporate governancebasedonindependenceofBoarddirectors,committees,auditors and Based onourMediaESGframework(February 2006),wefindthatVivendidemonstratesclearleadershiponESGperformance, rankin TheGoldmanSachsMediaESGframework(February2006)isaproxyforoverall managementqualitytoidentifycompaniesbestp of theclassificationandisinfirstquartile(seebelow). sector accordingtosustainabledevelopmentcriteria.VivendiisthefirstFrenchcompanybepart In February2006,GoldmanSachsestablishedaclassificationofEuropeancompaniesinthemedia investors onthebusinessimplicationsofclimatechange. Disclosure Projectprovidesasecretariatfortheworld’slargestcollaborationamonginstitutional Every yearsince2002,VivendihasansweredtheCarbonDisclosureProjectquestionnaire.The The referenceguidelineistheS The EthibelExcellenceSustainabilityIndex(ESI)comprises319companies,21ofwhichareFrench. society, andcustomer-supplierrelations. human resources,rights,andenvironment+forcorporategovernance,commitmentto The latestrating(November2005)byVigeo(onascaleof–to++)gaveVivendi++for The referenceguidelineistheDowJonesEuroStoxxindex. The ASPIEurozoneindexcompiledbyVigeoismadeupof120companies,46whichareFrench. criteria. of positiverelationswithallstakeholdersacompany),andethical(respectforhumanrights) “Socially Responsible”companies.TheFTSE4Goodindicesincludeenvironmental,social(development FTSE4Good isaseriesofindicescalculatedinrealtimeanddesignedtomeasuretheperformance the requirementsforlistinginindex. confirms thatVivendihasbeenindependentlyevaluatedaccordingtotheFTSE4Goodcriteriaandmet The FTSEgroup(acompanyownedjointlybytheFinancialTimesandLondonStockExchange) & P Global1200Index. rk_programme/investment/materiality/mat2/index.html. intellectual capital,weviewleadership onESG andBoardSeniorExecutiveresponsibility . WealsonotethatVivendihasdemonstrated leadership,andcashreturnsoninvestment. absenceofblockshareholdings.Vivendi’s ent tomanagingitsintellectualfootprint try peers. g inthefirstquartileversusEuropean ositioned forlong-termperformance 11 OUR APPROACH

12/41 authorities, andcivilsociety. customers, suppliers,thepublic partners: employees,shareholders, its responsibilitiesregardingall be accountableforitsvaluesand requirement impliesthatthegroup social, andenvironmental.That corporate responsibility:economic, consideration allthedimensionsofits continuous effortstotakeinto development approach,makes Vivendi, throughitssustainable hrdojcie 38 34 40 36 30 26 32 36 26 Health andmobile telephony Shared objectives Transparency approach ENVIRONMENTAL responsibility Social ties Outreach tothenextgeneration 14 Equal opportunity Supporting employees SOCIAL responsibility Innovation 24 Performance 18 Governance 14 ECONOMIC responsibility 13 OUR CORPORATE RESPONSIBILITY ECONOMIC responsibility Governance Governance

The adoption of a dual corporate governance structure consisting of both a Supervisory Board and a Management Board that emphasizes collegial management, internal control, and attentiveness to shareholders contributes to advancing the group’s global risk management.

A DUAL CORPORATE are of non-French nationality; three are GOVERNANCE STRUCTURE European and one American (see box, page 15). Their term of office is four years. Vivendi has a dual form of operation, with a Management Board and a Supervisory Board, The Supervisory Board is made up of a thus dissociating the powers of management majority of independent members. A member and control (see the table of corporate is deemed independent when he or she has governance indicators on pages 58 and 59). no direct or indirect relationship with the Company, its group or its management, of any The Supervisory Board: kind such as might compromise the exercise Membership and mission of his or her freedom of judgment (as defined in the report of the AFEP-MEDEF working The Supervisory Board, chaired by group chaired by Mr. Daniel Bouton). Jean-René Fourtou, is made up, as of April 30, 2007, of eleven members, nine of The Supervisory Board exercises constant whom are independent. Four of the members control over the management of the

MEMBERS OF SUPERVISORY BOARD COMMITTEES AS OF APRIL 30, 2007 Number of independent Committee Main areas of expertise Members Chairperson members • strategic direction of the Company • major acquisitions or disposals • strategic joint-venture agreements • Gérard Brémond (1) • transactions outside the scope of the announced strategy • Mehdi Dazi (1) Strategy (1) (2) 5 independent members • granting of securities, including endorsements and guarantees, • Sarah Frank Claude Bébéar out of 6 Committee the amount of which exceeds the power delegated • Andrzej Olechowski (1) (2) to the Management Board • Karel Van Miert (1) (2) • major financing transactions • substantial internal restructuring transactions • review of the annual individual and consolidated financial statements • consistency and effectiveness of the company’s internal control procedures • procedure for appointing statutory auditors • monitoring of the work programs of the external and internal auditors • Gabriel Hawawini (1) Audit • accounting methods and principles • Pierre Rodocanachi (1) Henri Lachmann (1) 4 members, all independent Committee • internal control methods and standards • Karel Van Miert (1) (2) • review of the cash position of the company and potential alerts • review of the annual assessment of the company’s Compliance Program • any matter it considers likely to create or constitute a risk on or to the Company; review of any potential procedural failure or corruption cases

(1) • compensation, representation, and travel expenses of the directors • Gérard Brémond Human • Fernando Falcó and principal officers y Fernández Pierre Rodocanachi (1) 4 members, all independent Resources • the adoption of stock option plans and free grants of shares, Committee de Córdova (1) (2) or any other mechanisms with similar purpose or effect • Sarah Frank (1) (2) • appointment of members of the Supervisory Board, of the Supervisory Board’s Committees, and of the Management Board • determination and review of independance criteria for members of the Supervisory Board • Fernando Falcó Corporate y Fernández • terms of payment and distribution of directors’ fees granted (1) (2) Claude Bébéar 3 independent members Governance to the members of the Supervisory Board and its Committees de Córdova out of 4 Committee • Gabriel Hawawini (1) • review of the terms of holding of exercised stock options by the • Andrzej Olechowski (1) (2) corporate officers • succession plans for certain members of the Management Board • assessment of the organization and performance of the Supervisory Board

(1) Independent member (2) Non-French member 14 In additionto Senior Executives The SupervisoryBoard discussion ofitsmodeoperation. March 6,2007,devotedpartofits agendato The SupervisoryBoard,inits session on evaluation wasmadeinFebruary 2006. Corporate GovernanceCommittee.Thisformal of itsoperationunderthedirection Supervisory Boardperformsaformalevaluation periodically andatleasteverythreeyears,the In applicationofitsinternalregulations, their respectiveareasofexpertise. recommendations, andexpressopinionsin the SupervisoryBoard’sdeliberations,make committees istoexamineandpreparefor Board, appointedbyit.Theroleofthese Board aremadeupofmembersthe The fourcommitteesoftheSupervisory page 14). Corporate GovernanceCommittee(see the HumanResourcesCommittee,and Strategy Committee,theAudit whose conductisunderitsresponsibility:the membership andmissionsitdefines appointed fourspecializedcommitteeswhose Company bytheManagementBoard.Ithas of theSupervisoryBoardSchneiderElectric of theSupervisoryBoard,Chairman of theSupervisoryandManagementBoards President andGeneralCounsel,Secretary Jean-François Dubos, Strategy andDevelopment Senior ExecutiveVice-President, Robert deMetz, Director ofvariouscompanies de Córdova, Fernando FalcóyFernández Company CEO ofEmiratesInternationalInvestment Mehdi Dazi, of PierreetVacancesGroup Chairman andCEO Gérard Brémond, of AxaGroup Chairman oftheSupervisoryBoard Claude Bébéar, Henri Lachmann, Chairman oftheSupervisoryBoard Jean-René Fourtou, Jean-Bernard Lévy Vice-Chairman Executive Vice- , PhilippeCapron and RenéPénisson ■ ■ ■ work oftheRisksCommittee(see page16); ■ procedures; ■ ■ ■ ■ of theSupervisoryBoard; operations notrequiringpriorauthorization ■ Supervisory Board; orientations incollaborationwiththe ■ ■ following areas: The ManagementBoardintervenesinthe collegially andconductingitsactivities. It isinchargeofmanagingthecompany Vice-President, HumanResources(seeabove). Financial Officer,andthegroup’sSeniorExecutive of theCompany’sbusinessunits,Chief Bernard Lévy,ismadeupofrepresentatives The ManagementBoard,chairedbyJean- The ManagementBoard: insurance. environmental affairs; litigation; monitoring ofriskassessmentand ofthe internal auditand control Compliance Programactivities; communications policy; social andhumanresourcespolicy; divestiture, merger,oracquisition implementation oftheCompany’sstrategic financial results,liquidity,anddebt; Membership andmission Gbil Hawawini, Gabriel Frank, Sarah Mergers andAcquisitions Executive Vice-President, Régis Turrini, and PublicAffairs Executive Vice-President,Communications Michel Bourgeois, Commission Former Vice-PresidentoftheEuropean Karel VanMiert, of BoozAllenHamilton Chairman oftheAdvisoryBoard Pierre Rodocanachi, Senior AdvisorofCentralEuropeTrustPolska Andrzej Olechowski, of Pennsylvania(UnitedStates) at theWhartonSchoolofUniversity Banking (Insead-France)andofFinance and Sciences(UnitedStates) of theNationalAcademyTelevisionArts of theFoundationNewYorkChapter ,

Vivendi’s SeniorExecutivesinclude: Member oftheBoard Professor ofInvestment The ManagementBoard Chief ExecutiveOfficer. the ChairmanofManagement Boardand jointly bytheCEOofbusinessunitand six timesperyear.Theagendaisdetermined Management Committeemeetsapproximately current keyconcerns.Eachbusinessunit their budget,plansofaction,and determined whendrawingupandupdating positioning, objectivesintermsoffiguresas an analysisoftheiroperationalandstrategic management, foreachoftheirbusinessunits: principal groupentitiessubmittoVivendi’s through theManagementCommittees, Also, aspartofarigorousprocessimplemented to theSupervisoryBoard. report onitsactivitiesandthegroup’saffairs The ManagementBoardsubmitsaquarterly operations ofsignificancetotheCompany. company’s commitments,andallevents of thefinancialandcashsituation, regularly informtheSupervisoryBoard The ManagementBoardoritsChair Management BoardofMarocTelecom Management BoardandChairmanofthe Rn Pénisson, René Chairman andCEOofUniversalMusicGroup Member oftheManagementBoardand Doug Morris, of theExecutiveBoardCanal+Group Management BoardandChairman Bertrand Meheut, Chairman andCEOofSFR Member oftheManagementBoard, Frank Esser, Chief FinancialOfficerofVivendi Member oftheManagementBoard, Philippe Capron, Abdeslam Ahizoune, Chairman oftheManagementBoardandCEO Jean-Bernard Lévy, Human Resources,Vivendi Games andSeniorExecutiveVice-President, Management Board,ChairmanofVivendi Member ofthe Member ofthe Member ofthe 15 OUR CORPORATE RESPONSIBILITY ECONOMIC responsibility Governance

INTERNAL CONTROL the Treadway Commission) Report and on the recommendations concerning corporate The year 2006 was marked by two major governance and internal control made by events – Vivendi’s ending its listing on the France’s Autorité des Marchés Financiers in New York Stock Exchange and the creation its report of January 22, 2007. of a Risks Committee. Vivendi is organized into five business units After Vivendi voluntarily delisted from the (Universal Music Group, Canal+ Group, New York Stock Exchange on August 3, SFR, Maroc Telecom, and Vivendi Games) 2006 and terminated its registration with which implement the orientations set by the Securities and Exchange Commission the Management Board as regards internal (SEC) on October 31, 2006, the group agreed control. to continue to provide a high standard of corporate governance and financial Directing the internal control process is one information and to continue its process of of the key responsibilities of the Management continuous improvement of internal control Board and the senior management of each of procedures. the five business units. Its direction is overseen by the Supervisory Board, following the The Management Board, at its meeting recommendations of the Audit Committee. of November 14, 2006, created a Risks Committee (see below) chaired by the As the parent company, Vivendi S.A. ensures Chairman of the Management Board and that internal control measures exist and are Chief Executive Officer. The mission of the effective within its subsidiaries and oversees Risks Committee is to strengthen procedures application of the rules of conduct and ethics for management and prevention of major risks applicable to all employees (see page 8). for the group. An assessment of the effectiveness of Vivendi looks upon internal control as a set the internal control process is conducted of procedures defined by the Management independently through the internal audit Board and implemented by Vivendi’s following an annual plan approved by the employees, with the aim of achieving the group’s Financial department and submitted following objectives: to the Audit Committee. ■ application of the instructions and Vivendi’s Internal Audit department is composed objectives set by the Management Board, of 23 auditors in three different offices (Paris, ■ compliance with laws and regulations and New York, and Los Angeles), supplemented with the group’s values, by the internal auditors of SFR (7 auditors) ■ prevention and control of operational risks, and Maroc Telecom (18 auditors) and external financial risks, and risks relating to error and resources for IT audits. Its operation is regulated fraud, by a charter which asserts its independence, ■ quality and fairness of accounting, financial defining its accountability to the Chairman of the and management information, Management Board and Chief Executive Officer ■ optimization of internal processes to of Vivendi while entitling it to direct access to the ensure efficient operation and efficient use Audit Committee of the Supervisory Board. The of resources. Internal Audit department enjoys an autonomy In order to attain each of these objectives, which allows it to intervene with complete Vivendi has defined and implemented general objectivity in all of Vivendi’s business sectors internal control principles that rely to a and units. In 2006, the Internal Audit department large extent on the definitions of the COSO carried out 122 missions within the group. (Committee of Sponsoring Organizations of

Creation of the Risks Committee This Committee, created on November 14, 2006, is chaired by the Chairman of the Management Board and Chief Executive Officer. Its standing members include the group’s Chief Financial Officer, the General Counsel and the Senior Vice-President, Audit and Special Projects. The Committee’s mission is to make recommendations to the Management Board in the following areas: • identification and evaluation of possible risks stemming from the Vivendi group’s activities, such as social, environmental, or tax risks, risks related to compliance with legislation and regulations, risks related to ethics, competition, and conflicts of interest, and risks related to information system security. • assessment of the adequacy of coverage of risks and the level of residual risk. • assessment of insurable risks and the insurance program. • cataloguing of risk factors and the forward-looking statements made in documents published by the group. The Committee invites representatives of the operational units to its sessions as a function of the topics on the agenda. It encourages exchange of best practices for risk management and prevention within the group and supports subsidiaries in their continuous-improvement actions.

16 expectations and observations. reports toManagement ontheshareholders’ vivendi.com) itreceives.Inthisway, theSIA and e-mailmessages(toShareholders@ compiles aweeklyreportonthecalls, letters, shareholders throughquestionnaires and The SIAregularlyconsults individual (www.vivendi.com). etc.), alsoavailableonVivendi’sWebsite all thegroup’spublications( format, bycallingtheSIA,andalsoobtain Shareholders’ Newsletter,inelectronic Shareholders mayalsosubscribetothe about thegroup’sEmployeeSavingsPlan. line) toprovidetheminformation,inparticular 800 900 (nochargeifcallingfrom afixed own dedicatedtelephonenumber,0805 through aGroupSavingsPlan,havetheir approximately 1%ofVivendi’scapital Employee shareholders,whoown +33 (0)1713499). shareholders callingfromothercountries: calling fromFrance,priceofalocalcall;for by calling0811902209(forshareholders the ShareholderInformationService(SIA) group’s strategyandsituationdirectlyfrom Shareholders cangetinformationonthe can bemadeknown. dialogue toensurethattheirexpectations for informationandongoing,constructive in itssettingupdynamic,reactivechannels the Île-de-Franceregion–isdemonstrated as ofMarch2007,nearly30%themin shareholders –whonumberedsome600,000 Vivendi’s commitmenttoitsindividual (the FinancialSecurityLaw). put inplaceapplicationofFrenchstandards development. Itcomplieswiththeprocedures strategy, situation,results,andfinancial precise, andsincereinformationonthegroup’s at providingallshareholderswithaccurate, Vivendi’s financialcommunicationpolicyaims at thecorporatelevel,met14timesin2006. the representativesofallfunctionaldivisions market authorities.ThisCommittee,madeupof the public,andregulatoryfinancial- regarding disclosureofinformationtoinvestors, of ensuringthatVivendifulfillsitsobligations group’s ChiefFinancialOfficerintheirmission of theManagementBoardandCEO A DisclosureCommitteeassiststheChairman Sustainable Development Report, Results Report, Development Sustainable Relaying information to individualshareholders ATTENTIVENESS TO SHAREHOLDERS Annual Report Annual , , and Sustainability Corporate Governance,Responsibility George Dallas,ManagingDirector,Standard group’s immediateandfutureperformance different eventshavinganimpactonthe financial marketsinunderstandingthe funds. Itsendsregularinformationtoaid and managersanalystsfrominvestment relations withanalystsfrombrokeragehouses in ParisandNewYork,maintainsongoing An InvestorRelationsdepartment,based in theworld’smajorfinancialcapitals. investors andanalyststhroughmeetingsheld Vivendi communicateswithinstitutional the stockexchange. the largesttradeeventinFrancededicatedto each yearatitsexhibittheActionariashow, and informingthousandsofshareholders Also, since1997,Vivendihasbeenmeeting available toasmanypeoplepossible. Webcast viathegroup’sWebsitetomakethem meetings, GeneralShareholders’Meeting)are in 2006. Majorgroupmeetings(investors’ events attendedbymorethan3,000participants and inothercities(Lyon,Marseille,Nice)at and talkswithindividualshareholdersinParis Management BoardandCEO,regularlymeets Jean-Bernard Lévy,ChairmanofVivendi’s of relevance to all investors. of relevancetoallinvestors. Indeed, strongESGperformance increasinglyisidentifiedas a proxyforgoodgeneralmanagement– aconsideration more lightwillbeshed ontheeconomicrelevanceofenvironmental andsocialperformanceasaninvestment criterion. more generallyforinvestors.Butasreporting standardsandcorporatedisclosureinthisareacontinuetoimprove, influencers orindicatorsofacompany’s operational andfinancialperformance. taken explicitlyintoaccountintheinvestment process.However,theseissuescanbeanalyzedaspotentiallymaterial investment guidelines. ESG issuesintheworldofmore«mainstream» investorsthatdonotoperatewithaspecificsocialmandateintheir Communication withinvestors At present, there still is relatively limited empirical evidence with regard to the financial impact of sustainability issues At present,therestillisrelativelylimitedempirical evidencewithregardtothefinancialimpactofsustainabilityissues For mainstreaminvestors,whichcaninclude bothshareholdersandcreditors,ESG-relatedfactorsoftenarenot and analysts investment world. Recent developments and initiatives are also raising the profile of investment world.Recentdevelopmentsandinitiativesarealsoraisingtheprofile of a purviewofsociallyfocusedinvestmentfunds–small,butgrowing,segment the enhancing theirreportingandcommunicationinthisarea.Thisdomainhaslong been society advocacy,shiftingconsumersentiments,andcorporateissuersthemselves increasingly visibletotheglobalinvestmentcommunity,givenmediaattention, civil a keyroletoplayincompanyanalysisfrombothcreditandanequityperspective. We recognizethatcorporategovernanceandresponsibilityissuescan have core userofourservices,andlargelyconsistscreditors,shareholdersinsurers. investment researchanddatatothefinancialmarkets.Thecommunity isa During the past year, corporate social and environmental performance has become During thepastyear,corporatesocialandenvironmentalperformancehasbecome

At Standard & Poor’s our primary focus is providing independent risk analysis, Poor’sourprimaryfocusisprovidingindependentriskanalysis, & Poor’s development issues(seeboxbelow). financial analystsareshowinginsustainable continue in2007duetothegrowinginterest SRI (sociallyresponsibleinvesting)will with investorsandtheircontactsregarding sustainable development.Theseexchanges to betterevaluateexpectationsregarding Vivendi in2005thefinancialcommunity organized followingasurveyconductedby English-speaking world.Themeetingswere representative institutionsinFranceandthe direct dialoguewithadozenofthemost These meetingswereanopportunityfor sustainable developmentpolicytoinvestors. began acycleofmeetingstopresentVivendi’s and theSustainableDevelopmentdepartment In 2006,theInvestorRelationsdepartment also tookpartin29investorconferences. executives andleadersofitsbusinessunits institutions weremetwith.Vivendi’ssenior with investorswereheld,duringwhich487 In 2006,73day-longroad-showmeetings media category. for thebestinvestor-relationsteamin Thomson ExtelSurveyAwardforIRExcellence Relations departmentwasawardeda ir). InSeptember2006,Vivendi’sInvestor (see thededicatedsitewww.vivendi.com/ 17 OUR CORPORATE RESPONSIBILITY ECONOMIC responsibility Performance Performance

Vivendi is a world leader in the entertainment industry, a sector undergoing rapid growth, in particular thanks to the development of technology and the growing needs of audiences pursuing leisure activities, seeking information, and making new discoveries. Vivendi’s business areas – music, television, film, mobile, the Internet, and games – meet these permanent needs that know no borders.

GROUP STRATEGY Between early 2006 and February 28, 2007, Vivendi made more than 6 billion euros in new Excellent results in 2006 investments to accompany the growth of its business units, in particular for: In 2006 adjusted net income increased by ■ Universal Music Group’s acquisition of 18%. The actual economic performance is BMG Music Publishing (pending authorization even in excess of that, since the figure of 18% by the European competition authorities), encompasses the transition costs related to a unique opportunity for developing music the combination of the pay-TV activities of publishing to become the world leader; Canal+ Group and TPS.

The group’s business units, all leaders on their respective markets, posted excellent performance in 2006.

The Canal+ Group has made the strategic choice of moving to High Definition for exceptional quality in content distribution.

Mary J.Blige, “the Queen of R&B”, a Universal Music Group artist, was one of the top winners of the 49th annual Grammy Awards.

SFR continues to enrich its offering of mobile Vivendi Games, world leader in Massively multimedia services Multi-Player Online Role-Playing and is now the leading Games, holds leading positions on the mobile music platform PC and console games market, with in France. major successes like that of Ice Age 2.

Maroc Telecom launches television via ADSL, a first in Morocco, in Africa, and in the Arab world.

18 its masteryofleading-edgetechnologies. to strengthenitsdevelopmentcapacitiesand studios intheUnitedStates,China,andChile Telecom inFebruary2007; Faso, inDecember2006and51%ofGabon Onatel, thehistoricaloperatorinBurkina by theEuropeancompetitionauthorities); business ofTélé2France(pendingauthorization now underway,ofthefixed-lineandADSL Cegetel from28.2%to40.5%andtheacquisition, terms ofnumbersubscribers; in Europe’sleadingpay-televisionplatform activities, effectiveJanuary4,2007,resulting net income. distribution rate of atleast50%adjusted and adividendcorresponding toadividend billion euros net incomeofbetween3.5and4 confirm thosesetfor2011,ofan adjusted of adjustednetincome.These objectives dividend distributionrateofat least50% in 2007andofensuringitsshareholders a costs relatedtotheCanal+/TPSoperation) of atleast2.7billioneuros(afterthetransition the goalofattaininganadjustednetincome under controlataround4billioneuros,has its growthperspectives.Thegroup,withdebt Vivendi hasconfirmeditslastingrecoveryand of thelevelrisk). cash flow;returnoninvestedcapitalinterms (impact onearningspershare;generationof according toaprecisematrixofindicators and externalgrowth,withthedecisionsmade to facilitateinvestmentsinorganicgrowth resources thantheycanmobilizeontheirown ■ revenue; subscription model,asourceofrecurring centered onconsumersatisfactionandthe ■ innovative services; ■ and broadband; ■ Internet, andgames); business units(music,television,film,mobile, ■ which restsonfivemainpillars: Vivendi isdeterminedtocontinueitsstrategy, in theformofdividendstoitsshareholders. out morethanhalfofitsadjustednetincome Vivendi generatessufficientcashflowtopay an increaseof20%whencomparedto2005. a dividendof1.20europershareforfiscal2006, These excellentresultsentitledshareholdersto ■ ■ ■ ■ Promising outlook Vivendi Games’acquisitionofcreative Maroc Telecom’sacquisitionof51% SFR’s increasingitsshareofthecapitalNeuf combination oftheCanal+andTPSpay-TV provide thebusinessunitswithgreater develop thegroup’seconomicmodel leverage thepenetrationofdigitaltolaunch leverage consumerdemandsformobility strengthen thepositionsofallgroup’s * ThedaybeforetheAnnualMeetingofShareholders E (5) Paymenttoshareholders ofVivendiExchangecofor5millioneuros. (4) Paymenttobearersof equitynotesinNovember2005for47millioneuros andtoshareholdersofVivendiExchangeco of 3mil (3) PaymenttoshareholdersofVivendiExchangeco for18millioneuros.Excludingprepaymentof263 of 213millioneuros. (2) PaymenttoshareholdersofVivendiExchangeco (formershareholdersofSeagram)for30millioneuros.Excludingprepayment (1) NumberofsharesrankingfordividendasJanuary 1st,afterdeductionoftreasuryheldatthedividendpaymentdate. E E * Certainchoicesregardingpresentationofinformationadoptedin2006havebeenappliedtothe2005figuresforhomogeneity. I * Vivendi considersadjustednetincome,anon-GAAPmeasure,toberelevantindicatorofthegroup’soperatingandfinancial NVESTMENTS i ilo uo)20 0520 2005/2006 2006 2005 2004 Adjusted netincome* EBITA Revenues (in millioneuros) OA ,6 7,709 4,662 2006 2005 TOTAL Financial investments Industrial investments,net Gross contentinvestments (in millioneurosIFRS*) Total payment Date ofpayment Net dividendpershare - EBITA (2) (1) and thereversaloftaxliabilitiesrelatingtorisksextinguishedoverperiod). - certainnon-recurringtaxitems(notablythechangesindeferredassetsrelatingtoConsolidatedGlobalProfitTaxSystem - provisionsforincometaxesandminorityinterestsrelatingtotheseadjustments - earningsfromdiscontinuedoperations - otherfinancialchargesandincome - amortizationofintangiblesacquiredthroughbusinesscombinations - impairmentlossesofgoodwillandotherintangiblesacquiredthroughbusinesscombinations It doesnotincludethefollowing: - taxandminorityinterestsrelatingtotheseitems. - incomefrominvestments - interest - incomefromequityaffiliates operations excludingmostnon-recurringandnon-operatingitems.Adjustednetincomeincludesthefollowing: performance. Vivendi’smanagementusesadjustednetincomebecauseitisabetterillustrationoftheperformancecontinuing VOLUTION VOLUTION VOLUTION asreportedbyeachbusinessunitssegment. aspresentedintheconsolidatedstatementofearnings. (2) (1)

(2)

OF OF OF

VIVENDI DIVIDEND VALUE (in millioneuros)

OF ’ S (1) V

(2) RESULTS (1) IVENDI

(2) (1)

(2) 1,020 05/02/01 05/13/02 N/A N/A 05/04/05 05/04/06 04/26/07 04/26/07 05/04/06 05/04/05 N/A N/A 05/13/02 05/02/01 SHARES (1) 0020 0220 0420 2006 2005 2004 2003 2002 2001 2000

(2) € 1 (1) (2)

IN 1,066

EUROS € 7831,8 004+2,9% 20,044 19,484 17,883 1 ,9 ,1 ,1 +17,9% +9,7% 2,614 4,370 2,218 3,985 1,498 3,504 (1) (3) ( JULY 1,2002- (2) € 689 0 0 APRIL € 0 18,2007*) (1) €

(2) ,8 3,881 1,645 2,183 1,481 1,291 1,890 0.6 (1) (4) 1,152 € 1 (1) (5) 1,387 lion euros. € € 1.20

31,73 (1)

19 OUR CORPORATE RESPONSIBILITY ECONOMIC responsibility Performance

RESULTS AND STRATEGIC PRIORITIES OF THE BUSINESS UNITS

2006 Results Universal Music Group • 1.3% increase in revenues * World’s largest recorded music • sales of digital music increased by 84% and accounted for 9.6% of the revenues company and world leader of Universal Music Group in 2006 compared to 5.3% in 2005 and 2% in 2004 in digital music distribution. • EBITA * up by 9.3%, to 744 million euros

Canal+ Group • 7.7% increase in revenues * France’s No. 1 for premium • the Canal+ Group totals more than 8.8 million subscriptions in metropolitan France, and thematic channels the Overseas Territories, and Africa, for a net increase of 348,000 subscriptions in 2006 and distribution of Pay TV; • increase in the proportion of digital subscriptions to the Canal+ channel a major player in the financing, (61% compared to 52% at the end of December 2005) acquisition, and distribution • EBITA * up 21.8%, from 206 million euros to 251 million euros before transition costs of feature films in France of 177 million euros stemming from merger with TPS and in Europe. SFR • revenues all but stable (at -0.2% *) but up 4.3%* excluding the imposed reduction France’s No. 2 mobile in wholesale rates (voice and SMS call terminations) telecommunications operator. • 4% growth in number of customers, at 17.9 million at the end of December 2006 SFR owns 40.5% of • 18% growth in traffic carried (68.3 billion minutes in 2006) Neuf Cegetel, France’s No. 2 • data services accounted for 12.9% of network revenues at the end of December 2006, fixed-line telecommunications compared to 11.7% in 2005 operator. • number of 3G customers: 2.7 million (compared to 1 million in 2005) • EBITA * up by 6.6% at 2,583 million euros and mobile EBITA excluding non-recurring items up by 2.4% ** Maroc Telecom • 10.4% * increase in revenues No. 1 fixed-line and mobile • 30% increase in number of mobile customers (10.7 million) telecommunications operator • 1.3 million fixed lines at the end of December 2006; 59% growth in the installed ADSL base and Internet service provider (nearly 384,000 lines) in Morocco. • EBITA * up by 16% at 912 million euros

Vivendi Games • 25.4% increase in revenues * Global developer, publisher, • continued worldwide success of the online game World of Warcraft and distributor of multi-platform (more than 8 million paying World of Warcraft customers at the end of December 2006) interactive entertainment. • EBITA * up by 109.1% (115 million euros compared to 55 million euros in 2005) World leader in the subscription Massively Multi-Player Online Role-Playing Games segment.

* Comparable basis essentially illustrates the effect of the divestitures that occurred in 2005 and 2006 (principally NC Numéricâble in 2005 and Paris Saint-Germain FC in 2006 chez Canal+ Group) and includes the full consolidation of minority stakes in distribution subsidiaries by SFR, if these transactions had occurred on January 1, 2005. Comparable basis results are not necessarily indicative of the combined results that would have occurred had the events actually occurred as of January 1, 2005. ** in 2005, the EBITA included 115 million euros of non-recurring negative items. *** Pending authorization by the European competition authorities. **** MVNO (Mobile Virtual Network Operator) refers to a virtual mobile operator. Such operators own no frequency spectrum or communications infrastructure of their own, but distribute their own SIM cards. They then resell minutes of communication purchased from traditional operators to their customers (see www.afom.fr).

20 • accelerate transformationinto amusicentertainmentcompanybyleveragingtalentsandbrandsthroughinnovationcreativ • integrateBMGMusicPublishing *** tobecometheworldleaderinmusicpublishing • maintainglobalrecorded-musicmarketshareatahighlevel • createnewfranchises • develop andstrengthenthestrategycenteredonusages(voice/data)byputtingemphasiscontinuityofuse,personalizatio • consolidatethepositionasleaderincustomersatisfaction • continuegrowingthecustomerbase • encouragenewformsofconsumption(on-demandormobile)television • acceleratedigitizationoftelevisioninFrance • offerthebroadestandrichesttelevisionofferingonmarket,forbenefitofconsumers • bringTPSintotheCanal+GrouptocreateamajoraudiovisualplayercomparableEurope’slargest • fightpiracyandbuilduptheofferingoflegaldownloadsinallformats • successfullymigratefromphysicalsalestodigitalformats • continue theexpansionofBlizzardEntertainmentincategoryMassivelyMulti-PlayerOnline Role-PlayingGames • strengthen VivendiGames’positioninMassivelyMulti-PlayerOnlineRole-PlayingGames(MMORPG), consolegames, • enter intolong-termstrategicpartnershipsaimedatdevelopingthetelecommunicationssector inAfrica • continue apolicyofsustainedinvestmenttoextendandstrengthenthequalitynetwork • make MarocTelecomabenchmarkforcustomerservices(technicalinstallation,after-salesservice,salesadministration, • remaintheprincipaldrivingforceandplayerindevelopmentofInternetMorocco • strengthentheattractivenessoffixed-line(launchinginnovativeofferssuchasUnlimited,TVviaADSL;loyaltyprogram) • stimulate thegrowthofmobilemarketbyencouraginguseservicesandcontinuingtoinnovate • strengthenoperationalexcellence • develop newperimetersaroundfixed/mobilesubstitutionandInternetaccess(launchof“HappyZone,”“Office new sourcesofrevenues with the online games,andgamesonmobiledevices between EuropeandAfrica(throughMVNOs **** likeMobisudFranceandBelgium) (such asMauritelinMauritania,OnatelBurkinaFaso,andGabon TelecominGabon)andencouragecommunication and introducethelatesttechnologies call centers,etc.) (preparation forthelaunchof3Gservices) and SFR’sADSLoffering) simplicity, andqualityoftheofferingsservices World of Warcraft Warcraft of World extension pack The Burning Crusade Burning The Strategic prioritiesfor2007 n, e 21 OUR CORPORATE RESPONSIBILITY ECONOMIC responsibility Performance

ATTENTIVENESS the group has a vital interest in seeing that TO CUSTOMERS licensing agreements are made between the different stakeholders in this area in order to Attentiveness to customers is a fundamental make interoperability possible. factor for the success of our business units, operating as they do in sectors characterized These agreements will have to be compatible by strong competition and subject to with two major objectives for Vivendi: extremely rapid technological change. The ■ the protection of content against illegal subscription model, a common characteristic copying, unlimited and with identical quality, of our activities, facilitates exchanges with made possible by digital technology; customers and contributes to anticipating ■ the promotion of content via different their expectations. business models (one-time downloading, subscription, rental, etc.) The challenges faced by a creator and distributor of content The legislative framework – and, in particular for France, the Author’s Rights and The group, in its concern for leveraging Neighboring Rights in the Information Society its content available in digital format, is law (“DADVSI Law”) of August 2, 2006 – is a sensitive to the demands of consumers useful one for allowing Vivendi to attain the and responds favorably to them provided point of balance between the indispensable that all the stakeholders concerned (public nature of the technical measures of protection authorities, site managers, ISPs, etc.) associated with DRMs and the fluidity, ease assume their responsibilities in making it of use, and satisfaction consumers expect possible for legal offerings that respect the from these new uses. rules of intellectual property to stand up to counterfeiting of digital property, a mass Vigilance on the part phenomenon which constitutes a danger to of the business units creation (see page 25). All these issues are dealt with in close Interoperability is a major issue for Vivendi. collaboration with the business units, Interoperability means seeing to it that whose Customer Services devote much all terminals, whether part of the mobile energy to listening to and responding to or the Internet world, can play all legally the expectations of their audiences and acquired content. Currently, certain content anticipating their needs in a process of legally protected by DRM (Digital Rights continuous improvement. Management) – the equivalent of access Canal+ Group rights to digital files – can only be downloaded to a specific player or other terminal, to the In order to offer personalized solutions great discontent of consumers. to its customers, Canal+ implemented a complete system of quality measurement Vivendi is neither a producer of these “DRM” in 2006. This tool allows management of systems nor a supplier or manufacturer of the Customer Service department based on equipment, and the solution is therefore indicators of performance and satisfaction not its concern alone. On the other hand, of all consumers, whether or not they are already customers. The quality of the Canal+ Group Customer Service is also the result of the choice of positioning the Customer Relations center Canal+/CanalSat Customer Relations center within the company. awarded the Social Responsibility Label This approach was awarded the Social The Customer relations center of Canal+/ Responsibility Label in September 2006 (see CanalSat was awarded the Social Responsibility box opposite). Label in September 2006. This distinction, created in 2005 at the initiative of the Labor SFR Ministry, recognizes a company’s ability to deliver quality services in a socially responsible In 2006, SFR confirmed the performance of its environment. The label is awarded based on Customer Service by achieving the Number precise criteria that gauge the attention a company pays to its customer service staff: One classification in the monthly satisfaction recruiting, welcoming and integration of survey conducted among customers of new employees, career monitoring, working France’s three mobile-network operators. This conditions, human resources policy, social dialogue, training, and respect for privacy. quality process also earned the “Qualicert” certification for all customer segments in 2006. Informing and engaging in dialogue 22 via parentalcontrol,andtoexplaincustomerstheactionsSFRhastakenpromoterulesforgoodcell-phoneconductinpub put inplace260stores2006toinformcustomersaboutrecyclingcellphones,offeringsandservicesfordisabledpersons modules accessibleonlinegiveallsalespeopletheopportunitytobetrainedinnewofferings. world asofMarch 1,2007. more than8.5million playersaroundthe division. Thegame, launchedin2004,had developed bytheBlizzardEntertainment on itsWebsiteinAugust2006. guide toelectroniccommunications,posted standardized informationpagesandauser Consumer Council,andalsotooktheformof SFR’s participationintheworkofNational local associations.Thedialogueisenrichedby holds meetingsallyearlongwithnationaland free numberforconsumerassociations,and representatives. SFRhasalsosetupatoll- of anewsletterdedicatedtoconsumer approach, demonstratedbythepublication with consumersisalsoattheheartofSFR’s fixed-line installationactivities. part oftheproductandservicessales in March2007.Thefirstauditswillbeofa In parallel,auditsofproviderswerelaunched of fixedlines,distributionbills,etc.) impact ontheserviceprovided(e.g.installation the outsourcedactivitiesthathaveadirect 2007 togathercustomers’observationsabout A satisfactionsurveywillbelaunchedduring in supplyingservicestoitscustomers2007. inspections oftheproviderswhoparticipate at alllevels,MarocTelecomwillextendits the desiretocontrolqualityofitsservice what improvementactionsareneeded.In Service areconductedregularlytodetermine end, surveillanceauditsoftheCustomer process ofcontinuousimprovement.Tothat 9001 certificationin2004,iscommittedtoa including customersupport,receivedISO Maroc Telecom,whosebusinessactivities, thanks tothesuccessof Player OnlineRole-PlayingGames in2006 leader inthemarketforMassively Multi- Vivendi Gamesconfirmeditsposition as

In thesamespirit,“espace”salesoutlets,inimageofcompanyanditsvalues,emphasizegoodcitizenship.Citizen Maroc Telecom Vivendi Games World of Warcraft of World thousand salespersonsandstoremanagersweretrainedin2006byCampusDistribution,SFR’ssalesuniversity,new the teamswhoareincontactwithclientelecontributesgreatlytoqualityofhelpandadvicetheydispense.Two for thenewSFRMusicservices,500downloadingterminalswillbedeployedinstoresbyendof2007.Training multimedia usesthatareconstantlyevolving,inparticularsincethearrivalof3G/3G+.Sotheycangetaconcretefeel process oflisteninganddispensingadvice. of serviceandaccompanyingthemindiscoveringlearningabouttheusesmobiletechnology,bydevelopinga centers istheresultofcontinuouseffortstoearntheirconfidence.Wedoit,firstly,byguaranteeingourclientsahighlev Dominique Martin,DirectorofCommunication,SFR The “espaceSFR”salesoutletsplayakeyroleinenablingthefunctionalitiesofmobileforcustomers,aswellnew Thequalityofourservicesincontactwithcustomers,salesstaff,andCustomerServiceagentsthecall , specificities. the contoursof week, whichallowsdeveloperstoadapt headquarters intheUnitedStatesevery positive commentstoBlizzardEntertainment’s send areportonplayers’expectationsand Europe, SouthKorea,China,andTaiwan) where thegameisplayed(UnitedStates, The teamslocatedinthegeographicalregions by otherplayers(seepage45). or problemsrelatedtoinappropriatebehavior their difficulties,whethertechnicalincidents step inatanytimetohelpplayersovercome service isprovidedby“gamemasters”who to players24hoursaday,7daysweek.This Customer Service,whichprovidesassistance be explainedinpartbythequalityof The ongoingenthusiasmforthisgamecan World of Warcraft of World tolocal , andprotectionofminors lic spaces. ship displayunitswere of cellphones. parental control,andrecycling differently-abled persons, in areassuchasservicesfor about SFR’scommitments in 2006toinformcustomers were putinplace260stores customers. Citizenshipdisplays between thebrandandits the closerelationsthatexist of SFR’ssalespolicyand late 2006,isthedrivingforce covered allofFranceas SFR” salesoutlets,which The networkof735 “espace el 23 OUR CORPORATE RESPONSIBILITY ECONOMIC responsibility Innovation Innovation

Innovation in production and distribution of content is a way of putting faith in creativity and talent (that of artists, authors, developers, filmmakers, engineers, and technicians) – an intangible capital that must be discovered, fostered, and protected. We do this by working to ensure respect for intellectual property, which is a wellspring of the economic development of the group and its different business activities (music, films, programming, game software, etc.)

INVESTING IN CREATION that comprise Universal Music Group work to nurture long-term relationships with their Vivendi’s investment in creation of content more than 4,000 artists through contracts that (nearly 2.2 billion euros in 2006 compared generally call for the production of several to 1.9 billion in 2005) has increased as the albums over a period of years. business activity gradually moves to virtual media via the process of digitization of The digital environment provides a fantastic production and distribution. new terrain for their skills, and that is why, in November 2004, UMG launched a digital- Universal Music Group music label – UMe Digital – which allows A&R UMG has confirmed its ability to attract directors to enter into exclusive agreements successful artists and earn their loyalty while with new artists and digital distribution continuing to discover and support new talent agreements with independent labels. Such over the long term. Always on the lookout new digital initiatives extend the roster of for composers, performers, and musicians, artists into many countries around the world, A&R directors of the approximately 50 labels including India and China. Canal+ Group Canal+ is the leading investor in cinematic creation in France (see page 49). This investment benefits emerging talents. Universal Music Group’s ability to spot young talent has been recognized around the world: the EBBA (European The channel encourages young directors Border Breaker Awards), organized by the European Commission to celebrate the diversity of music in Europe, through a collection of short films supported were given to ten artists or groups of artists, of whom five by the short-film programming department have signed with Universal Music. In France, the famous via a call for submissions from which short Prix Constantin and Victoires de la Musique recognized young talents Universal Music France is accompanying on films are selected for pre-purchase at a the road to fame, like Grand Corps Malade, Abd El Malik unit price of 25,000 euros and distributed (below), and Olivia Ruiz. Deutsche Grammophon produced the first solo album, Aria cantilena, by the remarkable via Canal+. This involvement with creators young Lithuanian mezzo-soprano Elina Garanca (opposite). of short programming is also evident in In South Korea, the young violinist Richard Yongjae (below) has been wildly successful in his country with his album an active pre-purchasing policy (in 2006, Lachrymae. Canal+ broadcast 232 short films, 109 of them French and 123 international/European) and in partnerships with numerous festivals, to which the channel devotes ample space. As for feature films, Canal+’s investments (138 million euros in 2006 to acquire 125 films) far exceed those of other French television channels. In 2006, the number of films pre- purchased by Canal+ accounted for a very large share of the films produced in France: 62% of the films approved by the CNC (Centre national de la cinématographie) and 66% of the 164 French-initiative films. These investments benefit first and second films in

24 extension pack by BlizzardEntertainment.Thegame’s 24 hours ofavailability.Asaresult, copies aroundtheworldduringfirst on January16,2007,soldcloseto2.4million studios intheUS,China,andChili2006. activities withtheacquisitionofcreative Vivendi Gamesalsostrengtheneditsbusiness (approximately 800models). the entireexistingbaseofmobilephones the toolsthatfacilitateportingofgamesto activity intheR division carriesonaparticularlysustained dozens ofWebportalsin60 countries. This distributed bymorethan90 operators and throughout theworld.Thegamesare publishes gamesforcellulartelephones in theParisregion,whichdevelopsand other platforms; duration –onlinegamesforPCandseveral publishes “casual”–shortandmedium divisions: In 2006,VivendiGamescreatedtwonew gaming inEuropeandtheUnitedStates. euros. works, devotingabudgetofnearlytwomillion co-produced orpre-purchased47audiovisual the RFOdistributionnetwork.In2006,Prodom content widerexposure–forexampleover relations withlocalproducers,givingtheir and Réunion.Ithasalsodevelopedlasting to locateintheFrenchAntilles,Guyana, initially locatedonlyinMetropolitanFrance encouraging producersofaudiovisualworks through itsProdomentity,beganapolicyof owned subsidiaryofCanal+FranceSA, Three yearsago,MediaOverseas,a100%- French-initiative filmsapprovedbytheCNC. 56 first(57%)and16ofthe27second(59%) particular. In2006Canal+financed32ofthe continuing tocombat piracy. of leveraginglegal contentofferingswhile of broadband),Vivendi isexploringallmeans burgeoning ofmobilityandthedevelopment sociological environment (with the In arapidlychangingtechnological and ■ ■ of thegame awards andbythephenomenalsuccess its creativetalentsintheformofnumerous platform games,hasbeenrecognizedfor worldwide distributorofinteractivemulti- Vivendi Games,adeveloper,publisher,and Crusade Crusade

Vivendi Games Vivendi GamesMobile,headquartered Sierra Online,whichdevelopsand PROMOTING CONTENT set anewrecordinthehistoryofPC World of Warcraft of World & Burning Crusade Burning D sphere,sinceitdesigns developed , launched Burning Burning downloaded inFrance,comparedto20%theUKand25%US. in theUnitedKingdomand47%States.Legallydownloadedfilesaccountforonly15%ofall 55% ofallInternetusersengageindownloading(music,video,games,andsoftware)France,comparedto59% judicial level. working incollaborationwithpublicauthoritiestostrengthenthelegislativeframeworkandinterveneon areas: developinglegalofferingsofdigitalcontent,raisingconsumers’awarenessthedangerspiracy,and All thegroup’sbusinessunitsaredeterminedtofightpiracyandcarryingonnumerousactionsinthreemajor Piracy: stillamajorchallenge new instrumentsproducersanddistributors evolution oflegislationthrewlightonthe An analysisofrecentjurisprudenceandthe full listofillegalpracticeswasdrawnup. the areaofprotectiononlinecontent,a contributing, allofthemprofessionalsin seminar. Withseveraloutsideparticipants that havecomeaboutsincetheCannes in thefaceofmajortechnologicalchanges Discussion centeredonthegroup’sinitiatives management offreeaccesstocontent. hypotheses wereconsidered,includingbetter to reflectiononpromotionofcontent.All The 2006Septemberseminarwasdevoted like athreatbefore,isnowanopportunity.” online offerings,whichmayhaveseemed kept piracyincheck,andtheburgeoningof CEO, recalled:“Thegroup’seffortshave Chairman oftheManagementBoardand Cannes seminar.AsJean-BernardLévy, The contexthasevolvedgreatlysincethe Paris. 28 and29,2006atVivendi’sheadofficein a furthermeetingwasheldonSeptember the resourcesusedinprotectingcontent, piracy andimprovingtheeffectivenessof group’s businessunitsinthebattleagainst encouraging experiencesharingamongthe held inCannesMay2005withtheaimof As anextensionofinitialinternalseminar (Source: “MonitoringduTéléchargement”study–IDATEandMédiamétrie/NetRatingsFebruary2007) guarantor ofasustainabledevelopment. demonstrate thatinnovationisthebest the hopethatnextseminarwillagain to aproactiveapproach,andexpressed participants tocommitthemselvesresolutely Jean-Bernard Lévyencouragedallthe page 22). the deploymentofthesenewservices(see and theirauthorizedusesisanobstacleto interoperability betweenthevariousmedia legal offerings.However,theabsenceof role ofconsumersinthedevelopment group’s businessunitsstressedthecentral diversity ofpotentialeconomicmodels.The The discussionsevaluatedtheextreme legal offerings. of contentandencouragetheemergence now haveavailabletoguaranteetheintegrity of content. share ideasonpromotion business activitiesand developments intheir an accountofthelatest September 2006togive units metinParis All ofVivendi’sbusiness 25 OUR CORPORATE RESPONSIBILITY SOCIAL responsibility Supporting employees Supporting employees

Vivendi strives to meet its employees’ expectations as fully as possible. During 2006, trade-union and personnel representatives and Vivendi management engaged in regular dialogue, beyond what is required by legislation and collective-bargaining agreements. While Vivendi works to ensure adherence to the values and rules of conduct defined in its Compliance Program, the group has chosen a decentralized form of organization of its labor-management relations. Each business unit, engaged in a dynamic of growth and social responsibility, mobilizes its employees through proactive policies.

SOCIAL DIALOGUE Sustained dialogue with the trade-union and personnel representatives within the At group level, the Group Works Council, subsidiaries led to the signing of 64 collective the European Social Dialogue Committee, agreements (including 32 for France) in 2006. and the headquarters’ Works Council were Among areas covered by the agreements regularly informed of the group’s strategy, are working conditions, remuneration, social financial position, social policy, and main protection, non-discrimination, and health achievements for the fiscal year. and safety. Discussions were held throughout the year A key area of discussion is the development and included a three-day training seminar of the skills of employees working in business for the members of the European Social units affected by extremely fast-moving Dialogue Committee and the members of technological change, which makes strong the group’s Works Council to keep them demands on creativity and involves intense apprised of the group’s activities and how competition. they are evolving. Detailed presentations were made on the activities of Universal Training needs and preferences are Music Group and Vivendi Games. Vivendi’s assessed regularly and discussions held sustainable development policy will be on between management and the employee the agenda of the training courses offered to representatives. These needs and preferences trade-union and personnel representatives are also noted down during assessment in 2007, along with a unit on the activities of interviews with employees. The percentage of SFR and Canal+. the payroll devoted to training in the group is well above what legislation requires.

Labor-management dialogue / Gender equality In France, the law of March 23, 2006 relative to wage equality between women and men was the subject of thoroughgoing discussion between labor and management within the group. Vivendi’s corporate headquarters, SFR, and Universal Music France have all adopted agreements encouraging gender equality. At Vivendi S.A., the company-level agreement on lifelong professional training, entered into on May 29, 2006, clearly stipulates that, in conformity with its goal of developing the employability and expertise of Corporate employees, the Company, in agreement with trade-union and personnel representatives, has made the choice of implementing the Individual Right to Training (DIF – Droit Individuel à la Formation) during working hours. This measure guarantees fair access to training and development of their skills for employees with families. At SFR, the agreement on career equality between men and women of July 6, 2006 includes several voluntary measures concerning recruiting, organization of working life and personal life, and remuneration. Management agrees to identify significant unjustified differences in remuneration between women and men, to undertake corrective measures, and to adopt an annual plan of action. Also, the measure implemented at SFR in 2003 ensuring coverage of wage complements for employees with more than six months’ seniority who take fatherhood leave so as to avoid loss of remuneration has been continued and complemented so that the leave will have no incidence on rights to share acquisition and profit sharing. Universal Music France, in its company-level agreement taking effect on January 1, 2007, has placed the emphasis on accompaniment of employees returning from maternity or parental leave. The company offers its employees additional days of training so that they can be informed about changes that may have taken place in their absence (in software, legislation, within the business unit, changes in working methods, etc.)

26 certain guidingprinciples, butleavesitupto area ofprofessional training.Ithaslaiddown French legislationhasmadestrides inthe training enteredintoonMay29, 2006. the company-levelagreementonprofessional Vivendi’s corporateheadquartersis thegoalof ■ on bestpractices. generally toexchangeideasandexperiences of theIndividualRighttoTraining,andmore particular thatmandatingtheimplementation legislation recentlyadoptedinFrance, with practicalandlegalissuesarisingfrom agreements” atgrouplevelanddealing expenditures bynegotiating“framework Its aimisbothbettermanagementoftraining and regularlyinvitesexpertstospeak. in April2006.Itmetfivetimesduringtheyear Vivendi subsidiariesinFrance,wasformed charge ofthesemattersinthedifferent training, madeupofadozenmanagersin ■ entity orinanothergroupbusinessunit. mobility opportunitieseitherwithintheirown In 2006,995employeestookadvantageof of TPS. the Vivendigroupavailabletoemployees job openingsinthedifferentsubsidiariesof January 2007–,themobilitynetworkmade of thismerger–whichbecameofficialin Beginning inOctober2006,thecontext of thepay-TVactivitiesCanal+andTPS. cases suchasthatcreatedbythecombination returning expatriates,andthestudyofgroup business units,individualmobilityrequests, include: jobperspectivesinthedifferent agendas ofthesemeetingssystematically at thegroup’scorporateheadquarters.The SFR, MarocTelecom,VivendiGames)and units (UniversalMusicGroup,Canal+ meetings areheldateachofthefivebusiness of allthesubsidiariessixtimesperyear.These group level.Itbringstogetherrepresentatives group onemploymentattheindividualand anticipates theimpactofchangesin Vivendi’s HumanResourcesdepartment ■ mobility andfosterprofessionaltraining. with itssubsidiariesinordertoencourage Vivendi carriesonanactivepolicyofexchange Fostering the employability of employees at Fostering theemployabilityofemployees at A “ReflectionandAction”grouponjob The mobilitynetworkimplementedby SHARING SKILLS EMPLOYABILITY AT GROUPLEVEL AND EXPERTISE AT VIVENDIS.A. AND SKILLSDEVELOPMENT behavior ofthepersonwe’respeaking to. of theimpactscommunication onthe simulation exerciseencourages awareness game technologyandusingroleplaying. This annual assessmentinterview,basedonvideo- ROM containingavirtualsimulationofan Trainers provideparticipantswithaCD- at alllevelsofresponsibility. basis, whichisessentialinallfunctionsand is onputtingthemtoworkaday-to-day employee andthatofthemanager.Thefocus are approachedfromthepointofview conflict, anddevelopingskills).Theselevers N-1 relations,learningtolisten,managing time andpriorities,workinginateam,N+1/ their effectivenessonthejob(managing control ofthe“levers”thatwillletthemincrease contribution), eachemployeelearnstotake (identifying andassessingtheirown Working fromthepointofviewperformance generally reservedformanagersalone. keys tocomprehensionandactionthatare working togetherinthesamesessions, at givingmanagersandtheiremployees, managers fromoutsidethecompany,isaimed The training,dispensedbyformeroperational extending ittothebasicsofmanagement. annual assessmentinterviewprocessby 2005 fortrainingallitsemployeesinthe the innovativeapproachimplementedin The managementofVivendiS.A.continued job effectiveness. the basicsofmanagementtoincreasetheir about itsoperation. in thelightofallpertinentobservationsmade It willbere-examinedafterayearofexistence and personnelrepresentativesinthecompany. The agreementwassignedbyallthetrade-union in theirrespectivecareertracks. and preparingthemforfurtherdevelopment them withthemeanstoperfecttheirskills, as thebestintheirparticularfields,providing objectives: allowingemployeestoberecognized of employees’employabilityanddefinedseveral Negotiation concentratedonthedevelopment at theCompany’sheadquarters. define themodalitiesofapplicationlaw negotiated acompany-levelagreementto subject toaparticularbranchagreement, in eachcompany.VivendiS.A.,whichisnot within thevariousprofessionalbranchesand define therulesforapplicationoflegislation trade-union andpersonnelrepresentativesto ■ Training allemployeesofthecompanyin they choosewiththeir shares. which timethebeneficiaries willbefreetodowhat legislation, willhaveadurationoffour years,after The FreeEmployeeSharePlan( in thatsuccessauniformway. Management Boardwishedtoassociate eachofthem achieved throughtheeffortsofemployees, the of rapiddevelopment.Sincethese results were successfully recoveredandhasnowentered aphase to salutethesuccessofgroup,whichhas With thisplan,theManagementBoardwished 13, 2006. Management BoardandwentintoeffectonDecember a totalof50countries)wasdecideduponbythe to allthegroup’semployeesaroundworld(in An exceptionaloperationawarding15Vivendishares employees Awarding offreesharestoall gratuite d’actions gratuite –AGA),inconformitywithFrench Plan d’attribution d’attribution Plan 27 OUR CORPORATE RESPONSIBILITY SOCIAL responsibility Supporting employees

DECENTRALIZED objective pursued by Campus+, expressed MANAGEMENT in the form of specific training modules. OF HUMAN RESOURCES The sessions are led by professionals from the group who share their knowledge of Following the principle of subsidiarity adopted Canal+’s customers, its products, and its by the group, the subsidiaries define their programming techniques with trainees. training policies in accordance with needs 152 employees were trained in 2006, and in the field and their respective company since January 2007 the courses are open cultures. to employees arriving from TPS in order to Universal Music Group – United States encourage their integration into the group. The journalism curriculum (writing, voice and In 2006, UMG put renewed energy into its on-air/onscreen behavior, etc.) was followed Respectful Workplace Training program, first by 130 trainees in 2006. adopted in the early 1990s in the United States. This year more than 90% of a workforce of some SFR 2,500 participated in the program. The program Faced with increasing competitive, aims to increase employees’ awareness of the technological, and regulatory pressure, need to respect cultural diversity. Prevention the SFR group has given itself the task of sexual harassment was also a major aspect of anticipating change by encouraging of the program in 2006. its employees’ career development and The program’s four goals are: defining the guaranteeing them access to stronger, more employee’s role in creating a work climate innovative programs. that respects others; understanding when In October 2006 SFR and the trade unions and why behavior may be inappropriate or signed an agreement entitled Anticipation, against rules and regulations; assessing développement des compétences et the effects and liability of harassment on progression professionnelle (“Anticipation, employees and the company; identifying Skills Development, and Career Progress”) resources and tools employees may use when which implements and organizes predictive addressing such problems. job and skills management within the SFR In order to familiarize employees with real group for a period of three years. situations, videos are screened that describe Through this agreement – based on two scenes from day-to-day work situations pillars: “Anticipate” and “Accompany” –, during which discriminatory language the SFR group commits itself to: sharing or inappropriate behavior are identified. information with employees – after discussion Employees are given a forum to exchange with union and personnel representatives – ideas about discriminatory conduct and how it on the strategic development of the company can be prevented at Universal Music Group. and its consequences on the business units; Canal+ Group developing a process of anticipation of needs for skills by managers to avoid conflict over In 2006, the priority for Canal+ has been to losses of jobs; encouraging the emergence involve employees in the group’s strategic of career projects, either internal or external, choices, and in particular that of moving to for each group employee; strengthening High Definition (HD). the resources and the time provided for Giving employees the tools they need to employees to prepare themselves for changes make progress in their job or profession and to come about in their business units. anticipating evolutions in those occupations Maroc Telecom to adapt their knowledge are the two areas of priority for the training programs, which Maroc Telecom’s commitment to its employee the Human Resources department defines career development policy since 2002 has in close collaboration with managers. These led to modernization programs in Human programs are dispensed by Campus+, an Resources and strengthened the skills approved training entity within Canal+, but development process (see comments by also by external institutions such as the INA Najib Abdelmouttalib, page 29). (Institut National de l’Audiovisuel), which To this end, skills development interviews in 2006 trained 280 employees to face the were conducted in 2005 with nearly 10,000 technological challenge of moving to HD. employees. Through this approach, the Disseminating a Canal+ culture shared company’s aim is to get a better knowledge by all employees to make each of them of its employees’ skills and those it needs an “ambassador” of the Canal+ Group, its to develop in the future. It has also been an business areas, and its challenges is the opportunity for employees to assess the skills 28 with movingand housing(findinglodgings, of theneedfor balancednutrition,help phase withthecompany’sobjectives. of theircapabilitiesandexpectations,in building theirowncareertrackinthelight aims toofferemployeesthepossibilityof in 2006.Withthisapproach,MarocTelecom form ofimplementation“careertracks” resources developmentpolicyalsotookthe company’s strongcommitmenttoitshuman developing thetrainingplanfor2006.The were studiedandtakenintoaccountin employees duringtheirinterviewsin2005 of skills,allthetrainingneedsexpressedby To maketrainingarealvectorfordevelopment by SamiraShaimi,above). identify howtodevelopthem(seecomments required forfulfillingtheirfunctionsandto they bringtobearincomparisonthose World of Warcraft of World the millionsofEuropeangamers as theyplay day, 7daysaweekinrotatingteams toaid the “gamemasters,”whowork 24hoursa The companyisespeciallyvigilant towards career advancement. working conditionsandopportunitiesfor of variednationalitieswithharmonious a pointofprovidingitsyoungemployees and inVélizy,theParisregion,makes In France,VivendiGames,basedinMeudon includes highlyvariedprofiles. in theyoungvideo-gamesindustry,which people andaccompanythemastheyprogress Vivendi Gamesendeavorstoattracttalented Through itsprofessionaldevelopmentpolicy, VivendiGames . Effortstoraiseawareness assessment interviewswithouremployees. consolidates themanager’srelationswithhisorheremployeesallyearlong.Thenatendofyear,wecaneasilyconduc their strongandweakpoints,putaccompanimenttrainingmeasuresinplace.Sincethen,weallfeelclosertooneanoth * MassaRHisthenameMarocTelecomhaschosenforitsprogramofdevelopingemployees’skills. Samira Shaimi,Director,DiourJamaasalesagency,Rabat Najib Abdelmouttalib,RegionalDirector,Rabat management ofemployeerelations,andreporting. main activities,allcenteredonthecustomerandproximitymanagementofhumanresources:skillsdevelopment,making to thedifferententities.RegionmanagementinRabathassetsameobjectivesofdevelopmentitsemployees.Itisorgani allow themtomoveforwardwithinthecompanyandalsosothatMarocTelecomcanmakeskillsnecessaryforproperoperation employees atthecoreofitsstrategy.Severalmodernizationprojectshavecomeintobeing,withgoaldevelopingemploye ThankstoMassaRH*,in2005weconductedanevaluationofouremployeesthelightcompany’sskillsguidelines.Weh ThehumanresourcesfunctionatMarocTelecomhasmarkedamajorturningpoint;likethecompany’sotheractivities,ittoop through thecorporateworld(seepage33). opportunities forintegrationandguidance provides itsyoungemployeeswith in 2006 andheadquarteredinMeudon, The VivendiGamesMobiledivision,created for theyoungemployees. effectively toensuringoptimumconditions doctor forsixhalf-dayspermonthcontribute and onSundays),theavailabilityofa housing areasforgamemastersatnight transportation (shuttlebusestothemain handling administrativeformalities),providing

Strategy Gameawardin2006. strategy game(seepage53)wontheAirgamer’sBestMobile graphics studio,isavailableonmobileplatformsandonline. that introducesZya(below),acharactercreatedbytheMeudon Slide’N Loop Slide’N Two gamesdevelopedbyVivendiGamesMobile: . Themobileversionof Slide’N Loop Slide’N Caesar , a game of reflection , agameofreflection , basedonthePC t performance er. MassaRH zed intofour es’ skillsto available, Caesar Caesar available ave listed uts its and 29 OUR CORPORATE RESPONSIBILITY SOCIAL responsibility Equal opportunity Equal opportunity

Vivendi, in its Compliance Program (see page 8), recalls the group’s commitment to “giving each person recruiting, employment, and promotion opportunities based on skill and sense of responsibility.”

THE GROUP’S discriminations et pour l’égalité), designating COMMITMENT a contact person who will relay initiatives taken by the body and identify best practices The rule of conduct regarding employees’ within the group. A meeting of the Sustainable rights, formalized in the Compliance Program, Development Committee in October 2006 was is integrated into the subsidiaries’ codes devoted to this theme of equal opportunity of conduct. In the evaluation report on the and the struggle against discrimination. It Compliance Program compiled each year by was attended by a representative of the the General Counsel, subsidiaries are asked HALDE, who made a clear presentation to show how employees’ rights have been of her organization’s ambitions. All the respected in conformity with the group’s contact persons at Vivendi’s subsidiaries internal rules – which, however, must not – including, via videoconference, colleagues take precedence over legislation or local at Universal Music Group in Los Angeles regulations. The program for developing and Maroc Telecom in Rabat – took part employees’ awareness of this Compliance in this committee meeting, which revealed Program, available on Vivendi’s Intranet site, and exchanged a wealth of practices for contributes to informing employees about combating discrimination. their rights. Vivendi’s Social Affairs department also In 2006 Vivendi took part in the working groups had the French subsidiaries SFR, Universal created by the French Ministry of Education and Music, and Canal+ list actions put in place for Research aimed at strengthening partnership promoting equality in order to respond to the relations between the national education HALDE’s “Cadre Pour Agir” program. system and enterprise in the service of equal opportunity. In November 2006 Vivendi signed the Charter of Business Commitment to Equal CHANGING BEHAVIORS Educational Opportunity, committing itself to A fundamental dimension of the promotion of carrying out individual, bilateral, or multilateral equal opportunity is seeing to it that certain actions and initiatives encouraging promotion types of behaviors change. That change can of equal opportunity in education, most notably be brought about by making diversity visible through development of school-enterprise and recognizing the positive contribution it collaboration. makes. That is why cultural diversity is an Vivendi accepted the invitation of the HALDE essential issue for distribution and production (Haute autorité pour la lutte contre les of content (see pages 48-51 and 55).

REPRESENTATION OF WOMEN IN THE VIVENDI GROUP

Universal Music Group Canal+ Group SFR Maroc Telecom Vivendi Games Vivendi Corporate Percentage of women in: 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 Total workforce 45% 45% 50% 52% 54% 54% 22% 23% 21% 21% 54% 56% Management personnel 39% 40% 42% 45% 35% 34% 26% 26% 21% 18% 45% 49%

Senior management (Senior executives, Executive 0% 0% 17% 21% 0% 0% 14% 17% 25% 28% 0% 0% Committee, etc.)

30 cannot affordtowaste them. on equalopportunities andthebenefitsforEuropeofadiverse society.Europehasaricharray oftalents.We of EqualOpportunitiesforAllaimstoensure theyallknowthis.Forawholeyear,wewillbeputtingthespotlight http://ec.europa.eu/employment_social/eyeq/index.cfm? 2007, EuropeanYearof EqualOpportunitiesforAll Vladimír Špidla,EuropeanCommissioner forEmployment,SocialAffairs,andEqualOpportunities with culturallydiversebackgrounds.” management personnel,anddecisionmakers it isthechannelwithmostexecutives, again standsoutfromotherchannels,since And wherehiringisconcerned,Canal+ are ofculturallydiversebackgrounds.(…) to findyoungtalents,andmanyamongthem nearly allthenon-paybroadcastshavechosen compared toitsconfrerechannels.Theresult: broadcast scheduleforFall2006islikeaUFO programming. (…)AtCanal+,thefree-to-air showing diversityoforiginsandculturesinits channels, Canal+hasadoptedthepracticeof and perhapsfirstamongthemajorFrench According toitsauthors:“Forsometime, the periodNovember2005toOctober2006. collected frommajorFrenchmediaduring November 2006summarizinginformation authorities, theClubpublishedareportin media. AttherequestofFrenchpublic are workingtopromotediversityinallthe more than300mediaprofessionalswho in 1997andnumberingamongitsmembers the membersofClubAverroes,founded This particularityofCanal+wasrecognizedby (see quotebelow). “European YearofEqualOpportunitiesforAll” the Europeaninstitutionsin2007–declared benefits ofculturaldiversityencouragedby thus participatinginthediscussionon to gobeyondclichésandstereotypes, Canal+ Groupencouragesitssubscribers sports, film,andmusicprogramming,the commentators andguests,itsnews, the regularappearanceofavariety Through thecontributionsofitsjournalists, and culturesinitsbroadcasting. solidarity, andrespectfordiversityoforigins always promotedthevaluesofassimilation, of theDiversityinCompanyCharter,has Canal+ Group,asignatoryinOctober2004 towards disabilitysince2002arevoluntary Among SFR’seffortstochangeattitudes Canal+Group:Diversityasdifference SFR: Anotherwayoflookingatdisability Europeans havearighttoenjoyequaltreatmentandlifefreeofdiscrimination.The2007 EuropeanYear

& page_id=341 compared to475,000eurosin2005). in 2006(1.2millioneurosbilled to theprotectedsectormorethandoubled Finally thebudgetforservicesSFRoutsources Internationale. program initscustomercenteratLyonCité graduating classinanalternating-training has committedtointegrate50%ofthefirst of salesoutlets.SFR’sCustomerService in Villeurbanne,tocreateaBTS( visually-deficient youngpeople,theEREA into apartnershipwithtradeschoolfor In 2006,SFRServiceClientalsoentered employees. resistance torecruitingdifferently-abled with thegoalofovercomingfuturemanagers’ “student ambassadors”inthedisabilitycause students tocontinuetheirstudies,andtrain engineering schools,toencouragedisabled awareness-raising actionsinthebusinessand companies. SFR’sobjectiveistoconduct program inpartnershipwithotherlargeFrench In 2006,SFRjoinedtheHandimanagement resources teamstoidentifyjobsbefilled. recruiting agencies,schools,andhuman The Missionworksinpermanentliaisonwith disability. of SFRreceivedtraininginawareness employees. In2006,onehundredemployees involving theintegrationofdifferently-abled The DisabilityMissionisinchargeofallactions Mission, createdin2002. on thesupportofcompany’sDisability contract. Thesenewemployeescancount were recruited,23ofthemonpermanent persons. In2006,33differently-abledpersons of 7%intheannualrecruitingflowfordisabled this agreement,SFRcommitstoanobjective promote hiringofdisabledworkers.Under agreement, firstenteredintoin2002,to In 2006SFRreneweditsthree-yearcompany persons intothecorporateworld. programs tointegratedifferently-abled technicien supérieur technicien ) diploma in management ) diplomainmanagement Brevet de de Brevet Swiss Swedish Spanish Portuguese Norwegian Korean Italian Irish German French Finnish Dutch Danish Chinese British Belgian Austrian American Algerian E Breakdown ofhiringsbynationality MPLOYEE 518 personsrecruitedin2006 ● ● ● ● ● Breakdown byagegroup

36-40 41-60 31-35 26-30 18-25

RECRUITING

IN F RANCE

AT V IVENDI 35% 55% 2% 1% 7% G AMES 127 186 15 35 85 16

9 4 7 1 5 1 4 9 9 1 1 1 2 31 OUR CORPORATE RESPONSIBILITY SOCIAL responsibility Outreach to the next generation Outreach to the next generation

Encouraging employment of young people is a priority for the group, which builds “bridges” that are relayed on the ground by the different business units. Proactive apprenticeship, recruiting, and accompaniment programs and efforts to integrate young people from disadvantaged neighborhoods are evidence of that ongoing commitment.

APPRENTICESHIP In December 2006, whereas projections Under the responsibility of an internship were for 178 at group level, the number of mentor, interns do work that earns them job Vivendi deploys efforts to encourage young apprentices was 188, for 152 candidate areas experience, designed to put them in actual people’s entry into the world of work by playing a and 136 receiving apprentices. With a group work situations and give them responsibilities part in a number of initiatives such as the Charter scope identical to that of 2006, there were appropriate to their level of skill. of Business Commitment to Equal Educational 117 in 2005. More than half the participants Opportunity (see page 30) and the Apprenticeship Since June 2006, interns have been asked are employed by SFR. Charter (see below) and by developing partnerships to evaluate their experiences by completing with schools and universities. Internships at Vivendi S.A. a detailed questionnaire used by the Human Resources department to assess whether the The Apprenticeship Charter The internship program at Vivendi S.A. internships met their needs and expectations. involved 26 students in 2006, for an average Late in 2007, an initial evaluation of these Vivendi, as a signatory of the Apprenticeship period of six months, and led to three questionnaires will be made by the Human Charter, has committed itself before the recruitings (two permanent contracts and Resources department. public authorities to strengthening one temporary contract). apprenticeship. The term “apprenticeship” Universal Music Germany: is here taken to mean all the legislative Interns at Vivendi S.A. are paid between Learning the music business measures related to dual-education work 30 and 110% of the minimum wage (1,357 contracts, including apprenticeship contracts euros monthly as of July 1, 2006), depending Universal Music Germany actively pursues and professionalization contracts. on their educational level. An additional sum its training missions aimed at young people in the form of a bonus can be added to that who are interested in the music-industry The signing companies agree to take on remuneration, at the end of the internship, professions. As a founder of the Pop Music apprentices and students at all levels on an amounting to 20% of the remuneration Academy (Popakademie), in 2003, along alternance (dual-education) basis, to increase previously received, depending on the quality with the Bade-Wurtemberg Land and their number by 20% in two years, and to respect of the work done. Südwestrundfunk radio, Universal Music cultural and ethnic diversity in recruiting. Germany offers scholarships to students each year (between six and ten from a total of thirty young people selected) for six years of studies

The Popakademie of at the institution. Mannheim (Germany) enjoys very active The goal of the Mannheim Popakademie is to support from Universal give its students the skills they need to adapt Music Germany. At the start of the digital era, to the rapid technological evolution of the the Popakademie works music business. Students undergo practical to give its students the apprenticeships with Universal Music over artistic training and skills necessary for two semesters, during which time they hone mastery of all aspects their skills in a professional environment, of the music industry. The Popakademie and mastering the various areas of the music Universal Music Germany industry. are partners in the MU:ZONE project, Universal Music Germany also offers training supported by the European Union (see for students in areas as varied as strategy, page 9 and opposite). law, marketing, sales, promotion and artist development, human resources, publishing, and finance.

32 support forthoseplaying team providescustomerassistanceandservice creation ofnearly7,000jobs. and know-how. the interestofmutualtransmissionskills in gettingclosertotheyounggeneration technological expertise,Vivendihasastake business areasintermsofcreativityand Aware ofthespecialdemandsgroup’s groups inEUmemberstates(seepage9). Project forthepromotionofyoungpop-music European UnionviatheLeonardodaVinci in MU:ZONE,aprojectsupportedbythe Universal MusicGermanyisalsoapartner programmer aswell asthesales,marketing, games tester,graphic artist,composer,and Attracted byvariedjobprofiles suchas also basedinMeudon. development ofgamesonmobile devices,is Mobile division,aworldwide centerfor throughout Europe.ThenewVivendi Games developer ofthegame the EuropeanofficeforBlizzardEntertainment, (see boxonrecruitingage,page31).Itincludes the Parisregion,attractsmanyyoungemployees In Europe,VivendiGames,basedinMeudon, open 3,600 In 2006 alone,MarocTelecomhelpedto is thecreationof10,000jobsby2010. Maroc Telecom’sobjectivefortheagreement with businessprojects. employment andtrainingofyoungpeople Maroc Telecomparticipatesinpromoting l’emploi etdescompétences–ANAPEC), Agency (Agencenationaledepromotion with Morocco’sNationalEmploymentPromotion offerings aimedatthepopulation.Inpartnership for developingtelephonyandInternetsales telecommunications lines,products,etc.) the necessaryinfrastructure(telephones, provides interestedyoungpeoplewith equivalent of230euros),MarocTelecom and acontributionof2,500dirhams(the In exchangeforpremisesinwhichtooperate retail network. on acareerthroughitsproductandservices and youngunemployedpeopletoembark provides opportunitiesforyounggraduates actively increatingjobs.MarocTelecom the operatorcommitsitselftoparticipate covering fiveyears(2005-2010)inwhich agreement withthepublicauthorities Maroc Telecomhassignedaframework VivendiGames MarocTelecom ATTRACTION téléboutiques World of Warcraft of World World of Warcraft Warcraft of World andaidedinthe . This . This Attracting youngtalentsatVivendiGamesMobile and ATSelectronics curricula.The tutors areaccompanying145students inBTS For the2006-2007academicyear, 125SFR into thejobmarket. the qualifyingexaminationthrough theirentry process, fromthetimetheyprepare totake taken inhandbyanSFRtutorthroughoutthe engineering schools.Eachyoungpersonis from disadvantagedurbanareasaccessto an equalopportunityprogramgivingstudents a commitmentwiththepublicauthoritiesto became thefirstFrenchcompanytomake Education andEmploymentMinistries,SFR created in2005partnershipwithFrance’s With the gamesindustry(seeportraitsabove). who wanttofindanoutletfortheirskillsin company in2006)andattractsproventalents their careersbychangingjobswithinthe Vivendi GamesemployeesinEuropeadvanced and internalstudiosbasedabroad(26.3%of careers, inFranceandalsootherdivisions young employeestobuildtheirprofessional The broadrangeofjobsallowslessqualified development thecompanyoffers. of thenumerousopportunitiesforcareer Vivendi GamesinEuropetakeadvantage legal, etc.functions,youngemployeesof Ingénieur Télécoms Télécoms Ingénieur SFR’s Passeport Ingénieur Télécoms INTEGRATION OF DISADVANTAGED AREAS YOUNG PEOPLEFROM Passeport Ingénieur Télécoms Ingénieur Passeport program wasawarded their specificmemorycapacities. He isatworkadaptinghismelodiestomorethan800modelsofcellphones,suit for VivendiGamesMobilegames. who hasalreadycomposednearlyfortyoriginalmelodies Guillaume Lebrasseur,31,isatalentedmusician Earth Empire where hehasalreadyworkedontheprogrammingoffivemobilegames: After earninghisdiplomaasanITengineer,AxeljoinedVivendiGamesMobile, Axel Rivière,29,isnowagameprogrammeratVivendiGamesMobile. Passeport Passeport , Red Baron Red , , Office Wars Wars Office leaving the MV4Parunion. In2006,74%ofstudents organization) andthesocial-protectionentity (the telecommunicationssectorindustry the TrophéeSocial2006byUNETEL-RST scholarships weregranted. business sectors.In2006,43higher-education towards MarocTelecom’sand Vivendi’s studies, inMoroccoorabroad, oriented disadvantaged areaspursuing university for deservingMoroccanstudents from fees anddonatethemtofinancescholarships Maroc Telecomhavedecidedtoforegotheir The membersoftheSupervisoryBoard applications. start of2007wasstudyingsometennew aided threebusinessstartups,andatthe the Association.In2006,Association loans canbegrantedbypartnerbanksof complement theirpersonalstake,andother realization. Itgrantsinterest-freeloansto draw uptheirinitialprojecttoitsconcrete the newentrepreneursfromtimethey the twoparties.TheAssociationaccompanies donations ofonemillioneurosfromeach pour lacréationd’enterprises,receives The fund,nowmanagedbytheAssociation businesses andthefinancingofscholarships. created afundforthecreationofnew Maroc TelecomandVivendihavejointly schools. program wereadmittedtoengineering MarocTelecomsupports business startupsandstudents and Larry Passeport Ingénieur Télécoms Télécoms Ingénieur Passeport . Caesar , 33 OUR CORPORATE RESPONSIBILITY SOCIAL responsibility Social ties Social ties

Vivendi believes firmly in encouraging social ties by entering into durable partnerships with civil society, with emphasis placed on their effectiveness and permanence. This commitment contributes to developing employment, mobilizes employees, and encourages them to share human values.

CONTRIBUTING FACILITATING EMPLOYEE TO THE DEVELOPMENT CITIZENSHIP OF EMPLOYMENT AND SOLIDARITY Vivendi has committed itself before the Vivendi gives its employees opportunities to French public authorities to contribute to participate in various solidarity actions. In the creation of jobs in areas affected by 2006, Vivendi launched a new program for unemployment or industrial restructuring. aiding unemployed persons in partnership This commitment takes two forms. with the association New Solidarity Against Unemployment (Solidarités nouvelles face The first commitment concerns jobs related to au chômage – SNC). Under the program, Vivendi’s businesses (through its subsidiary employees help persons seeking employment SFR) with the creation of two call centers, via in defining and following their own path back subcontractors, each of which will employ at to employment. least 300, by June 2007. Vivendi is ahead of its objectives, with 360 jobs created in the call With its solidarity projects, Vivendi encourages center in Belfort and 86 in the Douai center its employees’ commitment to humanitarian as of December 31, 2006. causes outside France. Vivendi finances missions related to economic development of the The second commitment is to contribute to countries in the Southern Hemisphere, putting creating jobs (five million euros yearly for five the professional skills of employees of Vivendi’s years for the creation of 1,000 jobs in three corporate headquarters to work. A partnership years and 1,500 in five years) not related to entered into in 2005 with the Association Vivendi’s businesses, in the form of financial of Volunteers of Progress (Association des support for viable creative or entrepreneurial volontaires du progrès) resulted in quality work projects. Operations begun early in 2005 by employees of Vivendi headquarters and SFR, led to 265 job validations in the Sarrebourg meeting needs defined by the volunteers and Château-Salins area, 397 jobs in the Arles area, the Association’s staff in the field. and 511 in the Oise. In February 2006, three new operations began with the validation of Three times yearly, Vivendi employees are 151 jobs in the Arras, Saint-Omer, Calais, and invited to take part in the juries who select Berck Montreuil areas, 166 jobs in the Chalon- the projects to be supported as part of sur- Saône area, and 142 in the Dreux region. Vivendi’s solidarity program. The projects, As of end December 2006, the total number presented by partner NGOs, essentially of jobs validated (that is, jobs in the process concern development in the countries of of being created corresponding to dossiers the South and entry or re-entry into the job validated by the funding committees) was market in France. This policy of sponsorship is 1,632, and Vivendi had paid out 10.2 million complemented by donations to partner NGOs; euros. Jobs actually created number 806, or Vivendi responds rapidly to urgent appeals approximately half those validated. by Action contre la faim and Médecins du Monde, among others. Given the progress made in the search for employment possibilities and the projects Vivendi nurtures ongoing relations with actually set in motion, four new employment its partner non-profit associations, which bases were designated in late 2006-early include Médecins du Monde, Action contre 2007: Abbeville and Montdidier, Thann- la faim, Disability International, Planète Cernay, the Tonnerrois and Autun, and urgence, the Guilde Européenne du Raid Château-Chinon. and its micro-projects agency, and more 34 face auchômage–SNC). against unemployment(Solidaritésnouvelles l’initiative économique–ADIE)andSolidarity financial initiative(Associationpourledroità progrès), theAssociationforrightto Progress (Associationdesvolontairesdu recently theAssociationofVolunteers responsibility for themselves. quarters, andencouraging themtotake for otherunschooledgirlsinthe city’spoor ambassadresses fortheirownsocial progress young women,aidingthemin becoming contribute totheprofessional training of objective inenteringintothepartnership: Canal+ HorizonsIvoryCoasthasathreefold human beings. culture) tohelpthemasserttheirdignityas (in health,personalcare,education,and hairdressing. Theyalsoreceiveschooling training insewing,computerliteracy,and Young womentakeninbythecenterreceive prostitution andotherformsofexploitation. to re-entertheworldofworkinorderavoid regaining confidencebygivingthemthemeans unschooled orvictimsofsexualabusein 2001, aidsgirlsandyoungwomenwhoare quarters ofAbidjan.Thecenter,createdin Sainte-Thérèse, locatedinoneofthepoorest cemented apartnershipwiththeCentreféminin In October2006Canal+HorizonsIvoryCoast in countrieswhereVivendiisactive. world, inparticulartoaidisolatedpopulations, Numerous actionsarecarriedoutaroundthe Canal+ HorizonsIvoryCoast: Aiding unschooledyoungwomen ENDINGISOLATION type launchedin Europe.DeployedinParis, les Myopathies –AFM)isthefirstofthis Association (AssociationFrançaise contre support oftheFrenchMuscular Dystrophy the associationMobileenvilleand withthe service, createdin2005partnership with reduced mobilityavailableonmobile. The service, thefirstguideforpersons with In 2006,SFRdevelopedthe“Handi-Cité” on SFR’sVodafoneLive!multimediaportal. with theWebsourdcooperative,isaccessible program inFrenchsignlanguage,produced progress. SinceDecember2006,adailynews and multimediamessagesrepresentmajor hearing-impaired, forwhomvideophones colors. SFRalsohasa3Gofferingforthe including lightdetectionandrecognitionof people, suchasvocalizationsoftware mobile phonesforblindandvisually-impaired adapted servicesthatfacilitatetheuseof HandiCapZéro since1997,SFRdevelops abled persons.Asapartnerintheassociation communication technologiesfordifferently- to facilitateaccessnewinformationand For tenyears,SFRhasdeployedinitiatives Remarck, above). (see commentsbyFrançoiseLeGuennou- diseases (AIDS)orwhohavesufferedtrauma counsel youngwomenwithimmuno-deficient also setupmeetingswithpsychologiststo computer technology.Canal+Horizonshas in theirapprenticeshipofmanagementand partnership andaccompanytheresidents Employees arefullyassociatedinthis the equipmenttheyneedfortheirtraining. to providethe120centerresidentswith Canal+ Horizonsdrewupaplanofactivity Beginning withthe2006schoolyear, SFR:Mobilityforall and Vice-PresidentoftheIvoryCoastNationalCouncilEmployers Françoise LeGuennou-Remarck,CEOofCanal+HorizonsIvoryCoast is givingthemachancetoplayrealroleincommunitylife. Canal+ Horizonsisinterestedinthem(unschooledandilliterategirls)that hairdressing, etc.),canpushbackpoverty.Theyalsoappreciatethefactthatalargecompanylike have realizedthattheythemselves,throughthevarioussocialprojects(sewing,computerliteracy, as regardstheirintegrationintosociallifeandneighborhoodswheretheylive.They first actionsweconductedhavehadapositiveimpactontheperceptionoftheseyoungwomen motivation tootheryoungwomenwhodonothaveaccessschoolingintheirneighborhoods.The of theseyoungwomenintotheeconomicfabric. has providedCanal+Horizonswithawaytogetinvolvedinthesearchforpartnersintegration Council ofEmployers,theFederationIndustriesandServices,ChambersCommerce, We feelthattheyoungwomen’sbelongingtoCenterandtheirsocialintegrationcanbea Belongingtocertaingroupsofinfluentialcompanies,includingtheIvoryCoastNational other largecities,includingToulouse. this “Handi-Cité”servicewillbeextendedto also guideusersaroundthecities.In2007, Thanks togeolocalization,thesystemcan also bars,restaurants,cinemas,etc. in eachofthecities:parkingareas,ATMs,but accessible topersonswithreducedmobility Loire-Atlantique), theguidelistsfacilities Nantes andRézé(intheDepartmentof its typelaunchedinEurope. the “Handi-Cité”guide formobiledevices,thefirstserviceof To simplifycitylifeforpersons withreducedmobility,SFRoffers

35 OUR CORPORATE RESPONSIBILITY ENVIRONMENTAL responsibility Transparency approach Transparency approach

Vivendi’s environmental policy is structured around formal commitments (the Program of compliance with environmental, health and workplace safety standards, the Environment Charter, and the Compliance Program) and implementation of methods and programs for internal and external control: reporting, audits, certification, and verification of the environmental management systems.

PROCEDURES all Vivendi’s business units. It lists and FOR REPORTING defines social and environmental indicators. ON ENVIRONMENTAL It defines the scope and the procedure for INDICATORS collecting information and analyzing and consolidating the data. It is part of the internal These procedures are defined in a protocol and external control procedures put in place which formalizes the process of collecting at the corporate and subsidiary levels (see environmental and social information in page 58). Environmental impacts To complement the existing protocol, work by business sector, media telecommunication to refine the environmental indicators was in 2005 and 2006 (excluding head office) completed in 2006, based on evaluating the reporting process from preceding years CO EMISSIONS (in million kilograms) 2 and comments from the environmental

20 22 representatives of the business subsidiaries. As a result, certain indicators (landscaping waste, water recycled off site, etc.) were 54 57 eliminated and certain other definitions were made more precise. Finally, new indicators 2005 2006 specific to the telecommunications sector DRINKING-WATER CONSUMPTION were added to the existing indicators (in thousands of cubic meters) (such as the number of measurements of 126 123 electromagnetic fields made near antennas and the percentage of these measurements complying with regulations). 412 441 INTERNAL AUDITS 2005 2006 WASTE PRODUCTION (in tons) The Program of compliance with environmental, health, and workplace safety standards adopted 2,537 by Vivendi in 2000 has now been implemented 1,460 at more than 80 sites. In 2006, six sites, including Vivendi’s corporate headquarters, were audited 2,806 1,989 using the established procedure: pre-audit questionnaire sent to the site manager; site 2005 2006 visit (facilities inspections and verification ELECTRICITY CONSUMPTION (in thousand kilowatt-hours) of regulatory documents); evaluation report 48,831 55,964 and list of recommendations; follow-up and re-evaluation. In 2007, the audit program will

303,142 351,790 include certain Maroc Telecom and Canal+ Poland sites. In early 2007, a total of 155 sites in the group had been identified for auditing. 2005 2006

36 and environmentalrecord-keeping. safety measuresapplicabletosubcontractors, management, fire-protectionequipment, and subterraneanstoragetanks,waste the identificationandinspectionofexterior but focusedonproposingimprovementsin areas ofnon-compliancewithregulations different auditsdidnotidentifyanysignificant The conclusionsdrawnin2006fromthe experiences concerningtheaudits. units madecommentsandsharedtheir participated. Representativesofthebusiness Vice-President, AuditandSpecialProjects Committee during2006inwhichtheSenior a sessionoftheSustainableDevelopment Environmental Affairs,HealthandSafetyat presented bythegroup’sVice-Presidentfor A summaryoftheinternalauditprogramwas “Clean Beaches”operation(seepage55). Maroc TelecomwasrewardedforitscommitmenttoprotectingtheenvironmentbyEuropeanlabel“BlueFlag”inJuly2006 and twoadditional tertiarysites. activities (strategic technicalsitesandantennas) in 2007tonetworkdeploymentandmaintenance the Ille-et-Vilaine).Thisprocesswill be extended Bouches-du-Rhône andatertiarysite locatedin (two technicalsitesinFrance’sEssonne and achieving thecertificationatthree pilotsites of itsenvironmentalmanagement system, environment throughISO14001certification managing theimpactsofitsactivitieson process, SFRformalizeditscommitmentsto In 2006,withintheframeworkofthis EMAS certification. performance andtakestheformofISO of thegroup’scommitmenttoenvironmental Participation inthisprocessisanillustration and Vivendi’scorporateheadquarters. commitments; itappliestothesubsidiaries This processispartofthegroup’senvironmental THE CERTIFICATIONAND EVALUATION PROCESS its corporate headquarters. There are two main its corporateheadquarters.Therearetwomain Management andAuditScheme)(seebelow)at accordance withEurope’sEMAS(Eco- environmental managementsystemin Vivendi S.A.haschosentodeployan its sitesin2007. environmental managementsystematallof studying thepossibilityofcertificationits The Canal+Groupalsoplanstobegin project beginningin2007. considering implementationofacertification environmental impact,MarocTelecomis strengthen reviewandassessmentofits of environmentalprotection.Inorderto improvements toitsresultsinthearea has committeditselftomakingcontinuous regulatory measuresinforceMoroccoand Maroc Telecomcomplieswiththeenvironmental Environment Directorate-General,EuropeanCommission Gilles Vincent,DeputyHead,“IndustryandEnvironment”Unit – within andoutsidethe EU. not onlytheneedsof companieslocatedoutsidetheEUbut alsothoseofcompanieswithbranches locatedboth available tocompanies locatedbeyondtheEUfrontiers. This willgiveitaglobaldimension.It wouldaddress even betterrecognisedasthescheme ofexcellenceinthisfield,butitisalsoconsideringmakingthescheme increasing demandforeco-designedproducts; andbeinggreenresultsinabettercorporateimage. friendly companiesfinditeasierand more economicaltocomplywithenvironmentallegislation;thereisan competitiveness; cleanproductionpays offintermsoflowerenergy,wasteandresourcecosts;environmentally- which arealsoeconomicallyprofitable. life-cycle approach,eco-designedproducts andinnovativesolutionstolong-standingenvironmentalproblems, credibility -allassetswhichdifferentiateEMASfromtherestofmanagement systemsavailabletoday. The Commissionisintheprocessofreviewing EMAS.Notonlyisitconsideringwaysofmakingthescheme Evidence showsthatimprovedenvironmental performanceoftentriggersinnovationwhichinturnleadsto More thanever,environmentandprofitcanbereconciled:EMAScompaniesoften exploreavenuessuchasthe EMAS-registeredcompaniesarerenownedfortheirhighenvironmentalperformance, transparencyand its worktoimproveandcleanAchakarbeachinTangieraspartofthe corporate level. Administrative Servicesdepartmentatthe the HumanResourcesdepartment,and for EnvironmentalAffairs,HealthandSafety, collaboration withthegroup’sVice-President department andconductedinclose by Vivendi’sSustainableDevelopment protection iscentraltothisinitiative,piloted Increasing awarenessofenvironmental gauging theirimpacts. workshops, toaidthebusinessunitsinbetter subsidiaries, usingenvironmentalmanagement awareness effortstobeimplementedatthe at stakeholders.Theprocessalsoincludes with anenvironmentaldeclarationaimed corporate headquartersandtheconsistency the desiretoinvolveemployeesofVivendi’s reasons forthechoiceofEMASstandards: 37 OUR CORPORATE RESPONSIBILITY ENVIRONMENTAL responsibility Shared objectives Shared objectives

Discussion of the new environmental performance objectives within the Sustainable Development Committee made progress toward adopting new actions for all the group’s business units for the period 2007-2012. The objectives proposed in early 2007 are now being discussed within the Sustainable Development Committee, and take the diversity of the group’s business activities into account. They apply to energy, waste management, relations with suppliers, and the application of environmental quality standards in the construction of new facilities.

THE ENERGY ISSUE improvements in the areas of lighting and air working to reduce it by adapting their products quality are among the actions slated for 2007. and services (see table below). SFR is continuing Several experts from the Caisse des Dépôts this effort in 2007 by implementing an energy et Consignations, Ademe (the French The Canal+ Group’s involvement in energy efficiency policy for technical infrastructures and Environment and Energy Management issues is evident in two initiatives. The first evaluating how to optimize employee travel to Agency), and the European Commission concerns the fleet of technical vehicles benefit the environment. were invited to Sustainable Development (choosing vehicles whose level of CO2 Committee sessions to help make the emissions does not exceed 120 g/km), and the Universal Music Group has also worked to representatives at both the corporate level second the implementation of vehicle pooling. reduce its environmental impact by changing and in the business units more aware of Since 2006, employees who need to travel to product packaging. In October 2006, as part of energy issues. different Canal+ Group sites are encouraged its program to re-issue albums by renowned to use shuttles provided by the company. artists, Universal Music Enterprises, a division Saving energy Toward the end of 2007, employees will be of UMG, marketed its Millennium Collection able to make car-pooling arrangements from CD with recyclable, biodegradable packaging. For several years, the Administrative Services home to work via the Intranet. Encouraged by the success of this initiative, department of Vivendi S.A. has implemented UMG International plans to market 900,000 measures for saving energy at the group’s Paris With 17.9 million SFR customers and 12 million CD-ROMs in “ecopacs.” The packs, made headquarters offices. In 2006, new initiatives fixed-line and mobile customers for Maroc of 100% recycled materials and completely included adaptation of heating water and Telecom, the group’s telecommunications recyclable, will begin appearing on shelves the use of lighting fixtures appropriate to the operators are aware of the significant in France and the UK in June 2007. energy demand of certain spaces. Continuing environmental impact they have, and are

ENERGY SAVINGS AT SFR

Actions having an environmental impact SFR 2006 Results Virtual Mobile Packs * 906 tons of paper and cardboard saved thanks to increased use of the virtual packs E-recharging (electronic recharging of telephone cards) This mode of recharging accounted for 78% of consumption of prepaid telephone cards Paperless billing via the Internet Consumption of close to 100 tons of paper saved Use of recycled paper in commercial documents 2,909 tons of recycled paper used, approximately 29% of the paper consumed by SFR Recycled bags given to customers at “espace SFR” sales outlets Distribution of more than 2 million recycled kraft bags in the last quarter of 2006

ENERGY SAVINGS AT MAROC TELECOM

Actions having an environmental impact Maroc Telecom 2006 Results Biodegradable prepaid telephone cards 78% of the total number of prepaid telephone cards E-recharging (electronic recharging of telephone cards) This mode of recharging accounted for 6% of the consumption of prepaid telephone cards Use of recycled paper in commercial documents 331 tons of recycled paper used Recycled bags given to customers at Maroc Telecom agencies 68 tons of biodegradable bags used

* A “virtual” pack is a mobile device, without a SIM card, activated directly at the point of sale, regardless of the rate plan chosen. The packaging of these mobiles is designed to reduce the outer packaging and limit consumption of raw materials. 38 an approachbasedon thelifecycleofequipmentandcallsfor strongercooperationbetweenStates topreventillegaltrafficki by thecontractingparties oftheBaselConventiononcross-border movementofhazardouswasteat their8thConference(COP8, particular inAfricaand SoutheastAsia,withoutregardforthe regulationsrelativetowaste.Thisexplains recentdevelopment from theEUbeprocessedunderequivalent conditionsasregardsprotectionofhealthandtheenvironment. has beenworkingtoincreasetheawareness Development Committeesessions,Vivendi Since 2004,throughitsSustainable photovoltaic panels. in December2006,deploying160sq.m.of antenna atFitouintheAudeintoservice without electricityservice.SFRputasolar energy toprovideGSMcoverageinareas network has70sitespoweredwithsolar sources. MarocTelecom’sradiotelephony Telecom alsomakeuseofrenewableenergy Telecommunications operatorsSFRandMaroc electricity consumption. sources tomorethan20%oftheirtotal of increasingthesharerenewableenergy sources. By2011,thesesiteshavethegoal 11% oftheirelectricityuse,fromrenewable kWh in2005),whichamountstomorethan 1.42 millionkilowatt-hours(1.36 In 2006,thesesixsitessourcedmorethan electricity fromrenewableenergysources. sustainable developmentbypurchasing are continuingtheircommitmenttofoster Vivendi GamessitesinCalifornia(USA) Two UniversalMusicGroupsitesandfour the group’scommitmenttoincludingenvironmentalconsiderationsinmanagementofitsproperties. of solarheat,installationplumbingfixtureswithlowwaterconsumption,tanklessheaters,etc.These automatic shutoffoflightinginunoccupiedoffices,absencesolventspaintandfloorwallcoverings,choosinglight- into itsconstructionprograms,suchasnotusingrefrigerantsthatimpacttheozonelayerinHVACsystems,choosinglightings Concern withenergyisalsoevidentintheconstructionofnewsites,notablyNorthAmerica.In2006,UniversalMusicGroup Environmental standardsinnewconstruction It isestimatedthatin2005,250million personalcomputersbecameobsoleteandthatthegreatmajorityofthemwere notrecyc The WEEEDirectivesetsspecificobjectives guaranteeingthatacertainvolumeofwastewillbeprocessedwithintheEuropean U Renewableenergysources WASTE ELECTRICALAND ELECTRONIC EQUIPMENT the MemberStatesencountereddifficulties inimplementingtheprincipleofproducerresponsibility. recovery, requiringeachmemberState of theUniontoestablishaspecificwastestreamformanagementWEEEattain those de facto facto de Huglo Lepage Matthieu Wemaere,AssociateinchargeoftheBrusselsoffice – million tons/year worldwide) and, – secondly, the absence of a selective process for collection and processing, resulting million tons/yearworldwide)and,–secondly,theabsenceofaselectiveprocess forcollectionandprocessing,resulting (in 2005,5%peryearintheEuropeanUnion,thatis,threetimesmorethananyother wastestream,orapproximately50 equipment containinghazardouscomponentsorsubstanceswithrelativelyshort lifecyclesbeingplacedonthemarket clear inthemid-1990sastwothingsbecameevident:–first,greatincrease theamountofelectricalandelectronic To respondtotheserealities,theEU’s so-called WEEEDirectivewasadoptedin2002tosetspecificobjectives,figures, fo The need for selective, controlled management of waste from electrical and electronic equipment (WEEE) became Theneedforselective,controlledmanagementofwastefromelectricalandelectronic equipment(WEEE)became in finaldisposalmixedwithhouseholdwaste (for90%ofWEEE). & Associateslawfirm and condition. re-used, orrecycleddependingontheirage accessories whichwillthenberefurbished, able toreturnusedterminals,batteries,and network’s facilitiesin2007.Userswillbe a pilotcollectionprograminfourofitsretail For itspart,MarocTelecomplanstodeploy service andmail-ordersales). units hadbeencollected(includingafter-sales mobile By theendof2006,morethan120,000 with intensivemobile-telephonyneeds. and soldsecond-handinemergingcountries recycled, ifnolongerusable,orrefurbished (735 salesoutlets).Thedevicesarethen throughout its“espaceSFR”retailnetwork and batteriesreturnedbyitscustomers specialized providertocollectusedcellphones to bettermanagetheirWEEE.SFRusesa All thegroup’sentitiesaremakingefforts accounting. law, butalsoontheimpactofWEEE of regulatorytextstransposedintoFrench a summarywaspreparedontheapplication electrical andelectronicequipment.In2006, the useofcertainhazardoussubstancesin equipment (WEEE)andthelimitationof to wastefromelectricalandelectronic European Unionregulationsapplicable of itssubsidiariesthepromulgation s at the international level, such as the decision adopted s attheinternational level,suchasthedecisionadopted suppliers. monitoring ofthesecommitmentswithmajor the businessunitswithgoalofbetter are inprogresswithrepresentativesof the environmentalauditprogram.Discussions clauses inservicecontractsthescopeof 2007-2012 istoincludeverificationofthese One ofVivendi’sobjectivesfortheperiod partners inthisarea. commitments fromindustrialandcommercial that includerequirementsforexpected requests forbidissuedbytheentities This commitmentextendsupstreamwith services. of suppliersproductsandproviders the environmentalandsocialresponsibility development clausewhoseprovisionsaffirm group’s businessunitsincludeasustainable Procurement contractsenteredintobythe ng in electronic waste. ng inelectronicwaste. RELATIONS WITH SUPPLIERS colored roofingmaterialstoreduceabsorption newconstructionstandardsaretheresultof Nairobi, December 2006), which recommends Nairobi, December2006), whichrecommends nion, but it also requires that waste exported nion, butitalsorequiresthatwasteexported led, but exported to developing countries, in led, butexportedtodevelopingcountries, in integrated environmentalqualitystandards ystems withlowerenergyconsumption, r recycling and r recyclingand objectives. All objectives. All 39 OUR CORPORATE RESPONSIBILITY ENVIRONMENTAL responsibility Health and mobile telephony Health and mobile telephony

Consumers’ enthusiasm for mobile telephony has raised concerns about potential health risks associated with electromagnetic waves. Vivendi pays particular attention to these concerns given its positioning in the first rank of telecommunications companies, with SFR in France and Maroc Telecom in Morocco, whose respective CEOs sit on its Management Board.

VIGILANCE Sweden, Norway, Finland, Canada, Japan, AND DIALOGUE New Zealand, Australia, and Israel). Pending the results of INTERPHONE, groups of experts The rapid development of mobile telephony in recommend certain precautions in using cell recent years has given rise to an international phones and other mobile devices, such as debate on the potential risks of electromagnetic using them in areas where reception is good waves for human health, a debate to which and using a hands-free kit (provided free of Vivendi pays close attention. charge in all SFR packs since September 2002 The overall analysis of currently available and in all Maroc Telecom packs since 2004). scientific data on the effects has so far not pointed to any deleterious effect on human SFR health from exposure to electromagnetic waves below internationally-established SFR established a Health and Environment limits. The World Health Organization (WHO) Programs department in 2000. The confirmed in Ottawa, in July 2005, the position department, assisted by scientific research it had adopted in June 2000, namely that: “no unit comprising an epidemiologist, an research results supported the conclusion environmental specialist, and a sociologist, that exposure to radiofrequency fields (RF) monitors the progress made by research, emitted by cellular telephones, their base works to better understand the expectations stations, or their antennas cause adverse of the different stakeholders, and recommends health effects.” any appropriate measures, which are then validated by a steering committee chaired As regards electromagnetic waves emitted by the CEO. by relay antennas, the WHO concluded in its Fact Sheet No. 304 of May 2006 that: As part of its activity to promote scientific “Considering the very low exposure levels and research in the area of radiofrequencies and research results collected to date, there is no their health effects, SFR worked extensively convincing scientific evidence that the weak during 2004, with the support of the Ministry RF signals from base stations and wireless in charge of Research and in partnership with networks cause adverse health effects.” other corporate interests, toward creation of a Radio Waves and Health Foundation. Concerning the use of mobile telephones, The Foundation was recognized as an research is continuing and Vivendi regularly entity operating in the general interest in monitors the results published, in particular January 2005. Among its goals are defining, concerning the INTERPHONE study promoting, and financing research programs coordinated by the International Agency for on the effects of exposure of humans to Research on Cancer (IARC), a WHO agency. electromagnetic fields used in electronic The main objective of this study, launched communications and disseminating the results in 2000, is to determine whether exposure of these research programs to members of the to mobile-telephone radio frequencies is industry and to the public. associated with cancer risk. This broad epidemiological study involved 13 countries In order to promote understanding of (France, the UK, Germany, Italy, Denmark, public expectations regarding research and

40 above). individual, publicofficial,orlessor(seetable its relayantennasattherequestofany of exposuretoelectromagneticfieldsnear to financeandcommissionmeasurements France (AMF).Inthiscontext,SFRhasagreed operators) andtheAssociationofMayors the AFOM(theFrenchassociationofmobile Good Practices,signedin2004between lessors) inconformitywiththeGuideto stakeholders (electedofficials,residents, in placementincludingdiscussionswith For antennas,theoperatortakessteps in its“espaceSFR”retailnetwork. its brochures,onWebsite,andshelves absorption rate)ofthetelephonesitsellsin to electromagneticwaves(SARorspecific communicative aboutthelevelsofexposure For cellulartelephones,SFRishighly body opentoallstakeholders. Foundation hasimplementedadiscussion information andhowtorespondthem,the and anyoneelse aboutantennasbeing possible concerns ofresidents’associations meetings torespondquestions and Maroc Telecomalsoholdsinformational basic safetyprinciples. and antennasoperatediscussing afew comprehensible wayhowmobile telephones mobile telephony,explaininginavery aimed atitssubscribersonthesafetyof In 2003,MarocTelecompublishedabrochure and antennasassociatedequipment. principles applicabletomobiletelephones the antennabuildersrespectallofsafety manufacturers whosupplyitsequipmentand Maroc Telecomisvigilantinensuringthatthe SFR I nomto n icsinatos20 2006 2005 100% 100% Rate ofcompliancewithregulatorylimitsthemeasurementstaken laboratory andfinancedbySFR Measurements ofelectromagneticfieldstakenbyanindependent Number ofpublicmeetings Information anddiscussionactions MAROCTELECOM NDICATORS international standards. were allwithinthelimitsestablishedby to MarocTelecom.Themeasurements nearly 150measurementsofsitesbelonging Between 2003and2006,theANRTtook electromagnetic fieldsmadebytheANRT. Health andtheresultsofmeasurements studies mandatedbytheMinistryof published areportontheconclusionsof Health andradiocommunicationsspecialists Telecommunications,” onApril17,2007. discussions onthetheme“Consumersand led toadayofinformationsessionsand campaign aimedatthegeneralpublic,which ANRT, notablyregardinganinformation Maroc Telecommadeproposalstothe the WHO,etc.)isprovidedtoparticipants. Protection [ICNIRP],anentityrecognizedby Commission onNon-IonizingRadiation bodies (limitssetbytheInternational Regulatory Agency[ANRT])andinternational of Health,theNationalTelecommunications from theMoroccanauthorities(theMinistry of electromagneticfields,andstatements the BureauVeritasreportonmeasurements equipment tointernationalhealthstandards, by suppliersastotheconformityoftheir packet containingthedeclarationsmade located neartheirhomes.Aninformation 7 522 185 575 194 41 OUR CORPORATE RESPONSIBILITY

42/57 and mobile). technological changes(broadband the newusesstimulatedbyrapid as viewedfromtheperspectiveof sharing knowledge–inparticular minors, culturaldiversity,and issues concernprotectionof and distributorofcontent.These related toitsactivitiesasaproducer sustainable developmentissues business unitsanddefined operations arounditsstrategic In 2003Vivendirefocusedits e ss 56 52 44 48 New uses Sharing knowledge Promoting culturaldiversity Protection ofminors 43 OUR SPECIFIC ISSUES Protection of minors Protection of minors

The protection of minors is a key issue for Vivendi, which endeavors to assess the potential impact its offerings of content and services have on young audiences. All the group’s business units are mobilized around this issue and work in close collaboration with Vivendi’s Sustainable Development department.

VIVENDI’S COMMITMENT and in particular to their willingness to share their experience with that of private interests. Vivendi must reconcile development of These exchanges resulted in collaboration content and service offerings made possible between certain participants. by the new technologies with the protection Vivendi became associated with the European of young audiences from modes of use or Union’s “Safer Internet Plus program” (see behaviors that can be harmful to them. The the box below). The goals of the program task is all the more complex to the extent (2005-2008), an initiative of the European that numerous interests are involved, that Commission, are to combat illicit and harmful regulations evolve, and that technological content on the Internet and to work to raise progress is extremely rapid. awareness, notably among end users – Attentiveness to the concerns parents, educators, and children. of civil society The Internet Confidence Charter Jean-Bernard Lévy, Chairman of Vivendi’s Since 1999 Vivendi has had an Internet Management Board and CEO, brought Confidence Charter that expresses the group’s together several experts from civil society commitment to protecting children and to ethical in December 2006 to discuss the issue of practices. Vivendi affirms its commitment to protection of minors as the media continue promoting methods of choice and control of to evolve. Representatives of French content and to cooperating with authorities and European public authorities, NGOs, in the fight against illegal content. the medical community, and industry organizations gave voice to their expectations

Safer Internet Vivendi is taking part in the work of the steering committee of “Internet sans crainte” (www.Internetsanscrainte. fr). This operation is part of the “Confiance program,” the French plan for increasing awareness of issues and risks connected with the Internet for children. Recognized by the European Commission as France’s awareness- raising hub, the “Confiance program” is a member of the European Insafe network (http://www.saferinternet. org/). More and more children and pre-teens use the Internet alone, with no supervision. Informing children and their entourage about responsible use of the Internet and other new technologies is indispensable for protecting young people in their day-to-day use of the Internet (finding information, chat areas, downloading potentially harmful content, etc.) A few key figures (in France): - 81% of children ages 8-10 use the Internet alone*; - 2 million children have Internet access in their rooms**; - more than 17% of 12-to-17-year-olds have already been exposed to a pornographic site**; - more than 433,472 pedophilia sites were found on the Internet as of 31 December 2005**; - 80% of young people ages 12 to 17 had cell phones in 2006, and 23% viewed Web content with their telephones***. Sources: * Figures published by the association Innocence en danger based on studies by the CEOP and BBC, April 2006. ** 2005 survey by the French Ministry of Solidarity, Health, and the Family. *** Sofres-Afom survey, August 2006.

44 -16, -18,orAdults Only. recommended for childrenunderagetwelve), of fivecategories: AllAudiences,-12(not publishers toclassifytheirservices inone October 2006.Thesystemcan be usedby established bytheInternetRights Forumin costs. SFRappliestheclassification system services, andtransparencyaboutdownloading warnings displayedpriortoaccesscertain quality ofthemoderation“chatrooms,” charter covers–amongotherareasthe charter signedbycontentpublishers.This of applicationstheprofessionalethics In 2006,SFRimplementedabi-monthlyaudit Multimedia drawnupbyAfom. for ResponsibleDevelopmentofMobile French ministryfortheFamily,Charter January 2006SFRalsosigned,alongwiththe content distributedviamobiletelephony.In and appropriateness;thefightagainstillicit according tonationalstandardsofdecency children; classificationofcommercialcontent to increasetheawarenessofparentsand content intendedforadults;campaigns the followingactions:controlofaccessto they committedthemselvestosupporting Commission, signedanagreementbywhich operators, throughtheagencyof 6, 2007,SFRandotherEuropean February On “protection ofchildrenandmobiletelephony.” the EuropeanCommissionontheme to anappeallaunchedinJuly2006by mobile operators’association),responded SFR, asamemberofAfom(theFrench responsibility. mobile devices,isnowassumingincreased encouragement ofnewmultimediauses of ThirdGeneration(3G)telephonyandits Internet access,etc.)withthedevelopment distributor ofcontent(music,TV-video, operator isevolvingtowardsthatofa SFR, whoseactivityasatelecommunications those stakeholdersinformed. to theirstakeholdersandactionsforkeeping the businessunitsarecommitmentsmade The rulesofprofessionalethicsdefinedby new modesofconsumption. offerings andasyoungcustomersadoptthe growing numberofcontentservicesintheir as telecommunicationsoperatorsincludea cuts acrossVivendi’sactivitiesevenmore within theirdomains.Theprotectionofminors to fulfillthiscommitmentandcreateimpact group’s commitments,usevariousmeans The businessunits,toconformwiththe

Mobile telephony

ETHICS RULES aware oftheneedtoprotectminors. communities ofplayers,whoareparticularly Controls areexercisedbythemanagersof vigilance extendstothediscussionforums. of conductexcessivelyorrepeatedly.This applied whenaplayerhasbrokentherules of theaccountisadefinitivesanction;it for aperiodof3hoursor72 hours. Closure of theaccount,andcanincludesuspensions They rangefromsimplewarningstoclosure imposed forfailuretorespecttheserules. where thegameismarketed.Sanctionsare their applicationinallareasoftheworld racial hatred,etc.).Gamemastersoversee dignity (violence,pornography,incitingto considered violationsofrespectforhuman These rulesdefinebehaviorsthatare customer. subscription agreementsignedbytheadult includes rulesofconductthatarepartthe intended forplayersovertheageof12(12+), take partindiscussionforums.Thegame, to communicateamongthemselvesand in avirtualworld.Theyareencouraged within acommunityofplayerswhointeract type ofgameisplayedovertheInternet Game Massively Multi-PlayerOnlineRole-Playing for thelaunchofBlizzardEntertainment’s Vivendi Gamesdefinedrulesofconduct Equally committedtoassumingresponsibility,

Video games World of Warcraft of World inlate2004.This telephones. who usemobile protecting minors an agreementon Commission, signed of theEuropean through theagency European operators, 2007, SFRandother On February6, 45 OUR SPECIFIC ISSUES Protection of minors

AWARENESS ACTIONS Mobile telephony: PEGI Charter Informing parents Vivendi recognizes the need to better inform The PEGI (Pan-European Game Information) Charter parents and young customers and strengthens In 2006 SFR increased its efforts aimed at uses five age brackets and six content criteria: its contribution by relaying messages in its parents. In addition to the distribution of various communication media. The business 8 million copies of its brochure Téléphonie units are highly aware of the issue and are mobile et contrôle parental (Mobile Telephony Three and over Eighteen and over Frightening images carrying out extensive initiatives. and Parental Control), included in all cell- phone subscription renewal packs and Video games: Content distributed in “espace SFR” stores, the Seven and over Violence Explicit language descriptions and age categories operator published a new brochure, in an edition of 4 million copies, presenting the two In order to alert consumers to the content levels of parental control offered by SFR (see of video games, Vivendi Games was among Twelve and over Nudity or sex Encouragement page 47). These documents, also available on of discrimination the initiators of Europe’s PEGI (PanEuropean the SFR Web site (www.sfr.fr), call parents’ Game Information) system and is now one attention to the fact that today’s cell phones of its most active promoters. This system Sixteen and over Drugs are used not only to communicate, but also to for providing information on games took access a wide range of services and content, effect in 2003 and was implemented at the some of which require their vigilance. These initiative of the interactive-games industry. It documents give precise definitions of the new is under the responsibility of the Interactive modes of consumption of content and inform Software Federation of Europe, the European parents about the tools made available by SFR association of publishers of interactive games. for helping them protect their children against Companies are free to apply this classification inappropriate use. to their entertainment software products. Vivendi Games adopted the PEGI Charter Music: Informing adolescents (see box above) from the outset. It uses In the United Kingdom, Universal Music five age brackets (3+, 7+, 12+ , 16+, 18+) has strengthened its “digital” approach to and six criteria (violence, nudity or sex, relations with its customers by offering to drugs, frightening images, encouragement send them, via the Internet, services and of discrimination, explicit language) to information concerning the artists and musical categorize games’ content. In the United genres of their choice. This approach includes States, a similar classification system (the strict rules regarding the protection of young Entertainment Software Rating Board) has people under age 13 and makes specific been implemented by the Entertainment recommendations aimed at adolescents Software Association. SFR is the first French operator to offer parents the and adults to remind them of “Internet best option of automatically enabling a two-level parental- practices.” control system when an account is opened for a young person (see page 47). PARENTAL CONTROL Vivendi’s responsibility as a producer and distributor of content also extends to providing parents with the means to protect their children. The business units have developed The parental control several tools. system implemented by Vivendi Games allows parents to limit Controlling use the time their children spend playing World The game World of Warcraft and its extension of Warcraft, a game The Burning Crusade have experienced developed by Blizzard Entertainment, by setting great success. In order to protect against times during the day unreasonable use of this captivating game, when logging onto the Vivendi Games included a “rest system” that game is not allowed. encourages players to pause their play in World of Warcraft (WOW) from the game’s inception. As players develop their characters in the game, they can benefit from rest periods. This mechanism was invented by Blizzard Entertainment during development of the game to improve playability, before it even went to market. The feature rewards players who space out their gaming sessions 46 allowed toconnect game outsidetheauthorizedtimeswillnotbe enabled, anyoneattemptingtologonthe etc.) (seepage46).Whenparentalcontrolis breaks (everythirtyminutes,onceanhour, certain hours,etc.)andthefrequencyof or severalpredeterminedweekdaysbetween children mayplay(weekendsexclusively,one define thedaysandtimesduringwhichtheir By enablingparentalcontrol,parentscan gaming timestayswithinreasonablelimits. page 46)toensurethattheirchildren’s 12 accordingtothePEGIclassification–see (a gamenotrecommendedforchildrenunder can beusedbyparentsofplayersWOW developed aparentalcontrolsystemthat Also, inNovember2005,VivendiGames make pausesforseveraldays(seeabove). can winoveralongerperiodthaniftheydon’t by awardingthemexperiencebonusesthey symbols basedon therecognitionoffiveage the regulatorybody optedforasystemof its recommendation ofNovember18,2002, the-air channelsshouldbeadopted. Then,in used byCanal+andcommon to allover- symbols withcolorcodessimilar tothose In 1998,theCSAdecidedthata systemof the channel’sdesiretoinformits subscribers. This spontaneousinitiativedemonstrated might beunsuitableforyoungaudiences. television viewerstoprogramcontentthat adopted asystemofcolorcodesforalerting In 1985,soonafteritslaunch,Canal+ encryption. uses twotools:ratingsymbolsanddouble young audiencesagainstunsuitablecontent, The Canal+Group,initsconcernforprotecting Shane Dabiri,leadproducerof draw experiencefromhisorheradventures. – for howeverlongtheplayerremainsoffline – rejuvenatesthecharacter’sabilityto spirit thantohangupone’sswordandshieldforthenightatanearbyinn?Thisrespite becomes understandablydiminished.Whatbetterwaytoreplenishenergyandboostthe weary afteraperiodofexcitingadventure,theirabilitytogainfromexperiences level. Furthermore,theRestSystemaddstofantasyofgame:ascharactersgrow greatly reducetheamountofexperiencethatallplayersneededtoprogressfromlevel speed atwhichgamerswithdifferentplaystyleslevelwithinthegame,itallowedusto excessive time‘catchingup’.Inaddition,becausetheRestSystembalancesout play asfrequentlyotherscanstillenjoylevellingtheircharacterswithoutspending that madethemlessaccessibleorfuntoplay.WiththeRestSystem,playerswhodonot game thatprovidedallthegreatfeatureswelovedaboutgenrewithoutaspects

Unsuitable content Wedesigned World of Warcraft Warcraft of World World of Warcraft of World to be a massively multi-player online role-playing to beamassivelymulti-playeronlinerole-playing World of Warcraft of World . had beenmadeby December31,2006. the “espaceSFR” sales outlet;91,000activations possibility offreeactivationparental controlin In November2006SFRbeganoffering the mobile operators). WAP sitesreferencedwithmost French (a multi-operatorsearchengine accessing Vodafone Live!MultimediaportalandGallery Web availableonmobile)thatareoutsidethe and allWAPmini-sites(theequivalentofthe blogs (personalsitesopentoothervisitors), to allsexandnudityservices,chatrooms, starting inJanuary2007,preventsaccess The reinforcedlevelofcontrol,available selected bySFR). content andservicesfrompublishersspecially Vodafone Live!(amultimediaportalcarrying well asaccesstoadult-orientedcontenton first levelblocksmobileInternetaccessas depending ontheageofchildren.The account isopened.Thesystemhastwolevels, enable aparentalcontrolsystemwhenan parents theopportunitytoautomatically SFR wasthefirstFrenchoperatortooffer CSA relativetoCategory-5programs. December 15,2004recommendationofthe in conformitywiththeprovisionsof For itsanalogueprogramming,Canal+is prohibited forunder-18s). that distributesprogramsinCategory5(those the channelsmakingupCanalSatbundle encryption foritspremiumchanneland Group implementedasystemofdouble In 2002,foritsdigitaldistribution,theCanal+ -12, -16,-18. recommended forchildrenunderageten), groups: nosymbol(allaudiences),-10(not included a“restsystem”thatencouragesplayerstotakebreaks. From theinceptionof World of Warcraft of World Menara Sécurité”offering. parental controlfreeofchargeinits“Pack Internet serviceprovider,hasincluded Maroc Telecom,alsoMorocco’sleading accessible toyoungMoroccanviewers. not recommendedforviewersunderage16is offerings, thisserviceensuresthatnocontent the entirefamily.Unlikepiratedsatellite SA, offersdiversifiedcontentaccessibleto Overseas, asubsidiaryofCanal+France The service,offeredwiththesupportofMedia and thematicchannels. channels andnumerousforeigngeneralist television viewersaccessallthenational the Arabic-speakingworld–letsMoroccan offering –afirstinMorocco,Africa,and May 2006launchoftelevisionviaADSL.This towards theprotectionofminorsduring Maroc Telecomdemonstrateditsvigilance the SFRmobileterminal. on directlytotheVodafoneLive!portalfrom sfr.fr Website,bydialing900,orlogging Parental controlcanalsobeenabledonthe , Blizzard Entertainment – a Vivendi Games division – has – has , BlizzardEntertainment–aVivendiGamesdivision 47 OUR SPECIFIC ISSUES Promoting cultural diversity Promoting cultural diversity

The UNESCO Convention on Protection and Promotion of the Diversity of Cultural Expressions, which entered into force on March 18, 2007, recognizes that cultural diversity “is a mainspring of the sustainable development of communities, peoples, and nations.” Sharing that vision, Vivendi has defined promotion of cultural diversity as one of its specific areas of concern and is pursuing three main objectives: encouraging creation in all its diversity; contributing to strengthening production capacities by discovering and promoting local talent; preserving and disseminating our cultural heritage.

ENCOURAGING DIVERSITY A&M, Island Def Jam Music Group, Lost The international music channel International IN CREATION Highway, Machete Music, Philips, Polydor, Music Feed (IMF), a subsidiary of UMG, Universal Motown Records Group, Universal is making a strong contribution. It is the As a producer and distributor of content, Music Latino, Verve Music Group, etc.; first 24-hour-a-day channel to broadcast Vivendi has a major role to play in encouraging ■ diversity of repertoires locally and musical programming and video devoted to creation in all its diversity, and in particular internationally: jazz, classical, rap, hip hop, artists from around the world, from a diverse as regards musical repertoires and cinematic rock, Latin music, gospel, country, etc.; range of countries including India, Cuba, expression. ■ number of countries where UMG is South Africa, Korea, and the countries of the present: 77; Americas and Europe. Diversity in music repertoires ■ number of artists under UMG contract The new information and communication around the world: more than 4,000, most of Diversity in musical repertoires is central to technologies encourage new forms of music whom perform in their native language; the activity of Universal Music Group, the consumption and contribute to the promotion ■ number of titles owned or administered by world’s leading music company in terms of of UMG artists, including local talents from UMG’s publishing division: over one million; market share (one album in four was sold developing countries who thereby become ■ number of Grammy Awards won by all by UMG in 2006), and leader in digital music accessible to music lovers in countries having UMG labels in 2006: 34; distribution. broadband and mobile. ■ number of “Victoires de la Musique” UMG’s ongoing efforts to nurture artistic awards won by Universal Music France: In 2006, many initiatives, both via the Internet creativity and make local artists known around eight out of fifteen, including Midi 20 – the and on mobile devices, strengthened the the world are borne out by the following album by the year’s hottest new discovery, distribution of Universal Music Group artists indicators: Grand Corps Malade – and two of the eight and their music. In 2006, UMG maintained ■ the diversity of labels (more than 50) brought Victoires for classical music. its position as leader in digital distribution together within Universal Music Group: AZ, thanks to its catalogue of digital music (the Universal Music Group is committed to giving Barclay, Decca, Deutsche Grammophon, Def most extensive on the market), to its ability its artists international exposure. Jam, ECM, Impulse!Records, Interscope Geffen to deliver new titles to digital distributors as

DIVERSITY IN MUSIC REPERTOIRES Distribution of Universal Music Group 2006 revenues by genre in France in the United States

● French easy-listening 42% ● Rock 22% ● International easy-listening 20% ● Pop 15% ● Compilations 19% ● Rap/Urban 19% ● Classical 6% ● Country 11% ● Jazz 4% ● Latin music 11% ● Techno/Dance 1% ● Classical 4% ● Rap 5% ● Jazz 2% ● Movie soundtracks 1% ● Movie soundtracks 7% ● World music 2% ● Other 9%

48 Approximately 600 screenplays are read every Approximately 600 screenplaysarereadevery Canal+, tothe commitment todiversity. distribution –also contributes,alongwith and Europeinfilmfinancing,acquisition, and the Canal+Groupandamajorplayer inFrance StudioCanal –a100%-ownedsubsidiary of added values. documentaries) andisoneofthe channel’s ■ ■ ■ and majorcinemaevents). support andpromotion(editorialprogramming can beevaluatedintwomainareas:financial The Canal+Group’sconcernforthisissue that essentiallyconcernstheCanal+Group. Diversity ofcinematicexpressionisanissue (CD bookletsandeditorialaccompaniment). flexible, andofferingadditionalcontent downloading, makingitsratestructuremore by improvingitsofferingofproductfor Universal MusicGroupcontinuestoinnovate (see commentsbyRobWells,page57). digital distributorsinpromotingitsproducts infrastructure, andtocollaborationwith soon astheyappear,viaitsdigitaldistribution cinema genres– subscribers in2006recognizedthediversityof of thefilmoffering(morethan90% This commitmenttodiversityisthefoundation euros. whose projectedcostwaslessthan4million purchased byCanal+were budget areas.In2006,47%ofthefilmspre- productions); case thelatterareessentiallyEuropeanco- by anon-Frenchcompany;inthepresent production isafilmproducedinitsmajority production company,andaminorityco- a filmproducedinitsmajoritybyFrench listed bytheCNC.(AFrench-initiativefilmis CNC and13ofthe39minorityco-productions 164 French-initiativefilmsapprovedbythe channel. In2006,Canal+financed110ofthe works pre-purchasedorpurchasedbythe cinématographie); approved bytheCNC(Centrenationaldela (59%) amongtheFrench-initiativefilms films (57%)and16ofthe27second In 2006,Canal+financed32ofthe56first creators makingtheirfirstorsecondfilm. commitment todiversity: (see above).Threeindicatorsreflectthis support tocinemaindustryorganizations Canal+’s commitmenttocontributefinancial Promoting diversityisanintegralpartof Financialsupport

Canal+’s balancedinvestmentinallfilm The nationalitycriterionforcinematic Canal+’s financialsupporttoyoung Diversity ofcinematicexpression films d’auteur, d’auteur, films films d’auteur d’auteur films genre films, Alejandro Inarritu),genrefilms( politically committednarrative( 12% ofitsrevenuetoacquiringEuropeanworks. • todevoteatleast9%ofitsrevenuetheacquisitionFrench-languagefilmsaspartobligationdevoting budgets; • tocontributefinancingawidevarietyoffilms,balancingitsparticipationamongallthedifferentlevels projected budgetoflessthanorequalto4millioneuros; • todevote17%ofitsobligationacquirecinematicworksoriginatingintheFrenchlanguagefilmswitha that tookeffectJanuary1,2005foratermoffiveyears: Canal+ madethefollowingcommitmentsinanagreemententeredintowithFrenchfilmindustryorganizations Canal+’s commitments March 2005withinCanal+LeBouquet, The Canal+Cinémachannel,launchedin innovative, andindependentfilms. viewers theopportunitytodiscoverforeign, Indépendant,” bothofwhichgivetelevision Séance Découverte”and“LaCinéma new filmstwoweeklyprogrammingslots:“La confirmed filmenthusiastseagertodiscover through anambitiouseditorialpolicy.Itoffers thorough approachtocinematiccreation contribute tobringingitsowncharacteristic, programming. Thechannelhascontinuedto cinema apillarofitsofferingexclusive Since itsfounding,Canal+hasmade by StudioCanalin2006,9werefirstfilms. creators. Of33filmsco-producedoracquired Palud andDavidMoreau),filmsbyyounger by StudioCanalincludedcomedy( content: co-productionsandacquisitions Diversity oforigin,andalsodiversity on allcontinents. 13 non-Frenchonesin11differentcountries worked with18Frenchproducersand aspects ofworldcinema.In2006,StudioCanal to buildaproductionpolicythatreflectsall year bytheStudioCanalteamsinaneffort 93 ta main ta Promotingdiversityincinema ), filmsbyexperiencedfilmmakers( , Fauteuils d’orchestre Fauteuils Indigènes Ils ), epicand byXavier Prête-moi Prête-moi Babel , Vol Vol by by Pulcini’s Sundance (ShariSpringerBermanandRobert Blue AngelforBestEuropeanFilm2005); Assad –AmnestyInternationalAwardand by AndrésWood);Venice( Solanas’s of the2004“Uncertainregard”prize,Juan ( mention orwonprizesatfestivals:Cannes available tosubscribershavereceivedcritical cinemas. In2006,mostofthefilmsmade seen ontelevision,andsometimesevenin films fromaroundtheworld,neverbefore also offersitssubscriberssometwenty Jury SpecialPrize2005). 2003); Deauville( 2004); Berlin( Mike Leigh–GoldenLionandVolpiCupin Moolade bySembeneOusmane–winner American Splendor American Nordeste Nordeste Paradise Now Now Paradise Keane Keane [see below], in May2006. “Séance PremierFilmFrançais” cast onCanal+Cinéma inthe festival. Thefilmwas broad- selection atthe2005Cannes “Un certainregard”official was screenedaspartofthe short-film awardfor noticed in2004afterhisCésar tion. JuanSolanashadbeen ficking inchildrenforadop- Argentina anddenouncestraf- with theextremepovertyin Argentine JuanSolanasdeals 2006, offered byCanal+Cinémain Among theworldcinemafilms Without a Head a Without by LodgeKerrigan– Nordeste Vera Drake Drake Vera by HanyAbu- –JuryPrize bytheFranco- Machuca Machuca . Nordeste Nordeste The Man Man The by 49 OUR SPECIFIC ISSUES Promoting cultural diversity

In January 2006, the Canal+Cinéma channel STRENGTHENING ushered in one of its new monthly features, PRODUCTION CAPACITIES: the “Séance Premier Film Français,” with Neg SUPPORTING LOCAL Maron, directed by Jean-Claude Flamand TALENT IN AFRICA Barny – his first work. Musical talent ■ As an ambassador of the seventh art, the Canal+ Group is associated with the finest Vivendi, in partnership with UNESCO, has cinema events, including numerous festivals implemented a program of training in the in France (Cannes, the Clermont-Ferrand profession of sound engineer in Bamako, Mali Short Film Festival, the American Film Festival to accompany Salif Keita, a Universal Music in Deauville, etc.) and in Poland, where the Jazz France artist-composer-performer, in his Canal+ Group has been present since 1995 desire to promote young talents in Mali and (Gdynia Festival of Polish Feature Films, neighboring countries. Era New Horizons Film Festival in Cieszyn, The program, begun in 2006, continues in Koszalin Festival of Film Debuts, Ale Kino 2007. The objective is to support Keita’s Films of the World Festival, etc.) ambition to make Le Moffou, his digital In 2007, in association with France’s Académie recording studio in Bamako, a force for des arts et techniques du cinéma, Canal+ making the culture of Mali known and a produced and broadcast, for the fourteenth place for artistic exchange. consecutive year, the César award ceremony. Vivendi developed the project in close This high point of the French cinema is collaboration with its subsidiary Universal broadcast exclusively and unencrypted. Music Jazz France, which financed the digital Canal+ also has exclusive rights to broadcast equipment for the studio and found French the Oscar awards. sound engineers willing to dispense training StudioCanal contributes actively to preserving to help establish their profession in Mali. this diversity of cinematic content and making UNESCO received funding from Spain’s it known through its worldwide operation of Agency for International Cooperation for the its catalogue. With more than 5,000 titles launch of this training program. and 55 countries represented, StudioCanal The partnership gives three young technicians has the largest catalogue of films in Europe. a chance to become professionals with In 2006, StudioCanal films were sold to mastery of all the technical constraints and television channels in 81 countries and via expertise necessary for the regular operation video in 30 countries. of the studio. Le Moffou gives artists found With its acquisition of the independent British and aided by Salif Keita the means to record distribution company Optimum Releasing in July their albums in Bamako, with their traditional 2006, StudioCanal intends to improve exposure musical instruments. of the films in its catalogue in the UK. The first three international titles produced by Salif Keita’s label Wanda Records and distributed outside Africa by Universal Music Jazz France appeared in March 2007. They are part of a collection called “Le Village.” Vivendi also contributed to the first edition In order to consolidate professional training for sound engineers in Mali, Vivendi, in partnership with UNESCO, has set up a training of the Wanda Young Talents Festival, held program at Le Moffou, Salif Keita’s studio in Bamako. The studio, in December 2006. The festival was held equipped with the newest technologies thanks to the support of in a disadvantaged area of Bamako, and Vivendi subsidiary Universal Music Jazz France, lacks qualified personnel. Thus the priority goal of the training program is to give some 6,000 residents were able to share this young trainees the opportunity to perfect their mastery of computer- cultural event, under the patronage of Salif assisted music techniques and the software used by sound engineers for recording, editing, and mixing. Keita (see his comments, page 51). Cinema talent Within Media Overseas, a wholly-owned subsidiary of Canal+ France SA, the channel Canal+ Horizons contributes to the development of local African film production capacities. As the leading French-language pay-TV channel, Canal+ Horizons covers the entire

50 films, event ontheAfricancontinent.Oneofsix Ouagadougou (Fespaco),thelargestcinema Panafricain duCinémaetdelaTélévision (February 20 -March3,2007)oftheFestival were incompetitionthe20thedition Six filmssupportedbyCanal+Horizons Multimédia (Dakar,Senegal),whoproduced by AbdoulayeAscofare,andEmebéVision Parenthood Federation)prize. women andtheIPPF(InternationalPlanned Fund prizeforthepromotionofrights was awardedtheUnitedNationsPopulation (Burkina Faso),wasafestivalprizewinnerand (Bamako, Mali),producerof in 2006areLesFilmsdelaDuneRose support andpromotionviaCanal+Horizons Among localproducerswhoreceivedfinancial per year. to supportanaverageofsixfeaturefilms consideration for2007,theobjectivebeing the channel.Severalprojectsareunder 12 featurefilmsreceivedfinancialaidfrom aid toAfricancinema.In2005and2006, Horizons hascontinuedalongtraditionof With itspan-Africanvocation,Canal+ it hasmorethan100,000subscribers. Available inmorethan40Africancountries, African continentviacableandsatellite. page 57). for accomplishing thishugemission(see Digitization ofcontentisagreat advantage it canbehandeddowntofuturegenerations. and promotionofthisculturalheritage sothat all.” Vivendicontributestothepreservation be cherishedandpreservedforthe benefitof common heritageofhumanityandshould 18, 2007,states,“culturaldiversityformsa Expressions, whichwentintoforceonMarch and PromotionoftheDiversityCultural As theUNESCOConventiononProtection Express Atlantic

PROMOTING HERITAGE Djanta , directedbyTasséréOuedraogo by MoussaYoroBathily. initiative for the promotion of Mali’s culture. initiative forthepromotionofMali’sculture. to seeaneventofthatsize. The youngartistswereveryhappytobeappearingonsuchalargestage–notmentionresidentsoftheneighborhood,whora Salif Keita,Malianauthor-composer-performerandUniversalMusicJazzFranceartist The festivalinfusedlifeintoaneighborhoodthathadnoculturallife.Itbroughthappinesstothepeople’sheartsandwas From thispointofview,theYoungTalentsFestivalwasabigsuccess.ThedistrictMayorBamakoandMinisterCulture Zabou Developmentissustainableifitstrengthenslocalcapacitiesforculturalproduction,andinMalithereareenormousartist , directed more than40intosixdifferentlanguages. subtitled versionsof185filmsanddubbed countries). In2006,StudioCanalproduced550 (subtitling ordubbingofallfilmsforvarious and internationalizationofthecatalogue (video ondemand,mobiletelevision,etc.), use anddistributionoffilmsonnewmedia Critics), digitizationofmediatooptimize Award” oftheNationalSocietyFilm both restorationoffilms( heritage. Thisisamajoreffortthatinvolves to preservingandmaintainingthispriceless Europe, devotes5%ofitsyearlyinvestments Group withthelargestcatalogueoffilmsin StudioCanal, a100%subsidiaryoftheCanal+ group operates. musical genresineachcountrywherethe the sametimeencouragingbirthofnew medium fortraditionalexpressionswhileat Universal MusicGroup,whichservesasa Cultural heritageisespeciallyimportantto ombres ombres received the“SpecialFilmHeritage L’Armée des des L’Armée the multiculturaluniverseofitsgame references tolocaltraditionandculturein Vivendi Gamesalsomakeseffortstoinclude Music Festival). the RabatFestival,andRassaniDesert Amazigh MediterraneanFestivalinTangiers, Sacred Music,theCasablancaFestival, festivals includingtheFesFestivalofWorld and music(ongoingpartnershipswithseveral and theTetouanMediterraneanFilmFestival), for theMarrakeshInternationalFilmFestival acquisition of38worksart),film(support cultural heritage,promotingpainting(viathe protection, anddistributionofMorocco’s sponsorship, contributestothepreservation, Maroc Telecom,throughanambitiouspolicyof environment. of nationalholidays,etc.)inthegame and traditions,humor,music,celebration can findfamiliarelements(populararts Korean, Chinese,Taiwanese,etc.players of Warcraft of , sothatEuropean,American, films inEurope. it isthelargestcatalogueof countries represented, and 55 titles With morethan5,000 of materialinitscatalogue. world throughthewealth content knownaroundthe diversity ofcinematic actively tomakingthe StudioCanal contributes particularly successful particularly successful rely have a chance rely haveachance of Mali attended. ofMaliattended. ic hopes. ic hopes. World World 51 OUR SPECIFIC ISSUES Sharing knowledge Sharing knowledge

“Sharing knowledge” refers to Vivendi’s ambition to meet the following objectives: The demand for quality and pluralism of content, raising public awareness of the importance of sustainable development, promotion of dialogue between cultures.

QUALITY AND PLURALISM news, “Lundi investigation,” and the new OF CONTENT magazine “L’Effet papillon,” which offers, each week, stories devoted to international The group has the responsibility of providing topics with the goal of opening a window on information that is accurate and pluralistic, the emergence of a different world. since it distributes content using a growing number of technological tools: satellite, digital This demand for pluralism and rigorousness in terrestrial television, mobile telephony, the processing information has also contributed to Internet, etc. Through them, Vivendi speaks making i>TELE, the Canal+ Group’s all-news to a vast audience that extends beyond its channel, the leading continuous-information own customers. channel in France, with a viewership that has doubled in a year since its introduction While this is an issue of concern for all the on free digital terrestrial television (DTT). group’s entities, two business units are more The number of viewers increased from 3.8 particularly subject to it due to their influence million in late 2005 to 7.5 million by the end as broadcasters of information – the Canal+ of 2006, and to 10 million in January 2007. Group and Maroc Telecom. Anchors emphasize debate and discussion, an Canal+’s editorial policy has three guiding international outlook, and exchange of points principles: diligence, clarity, and realism in of view with guests from widely varied fields dealing with topics; respect for pluralism and like culture, the economy, politics, science, independence; inclusion of an international justice, literature, sports, and the media, point of view. in an effort to place the news in a broader context of knowledge in order to contribute The Canal+ editorial department throws light to developing viewers’ critical sense and on current events, provides in-depth analysis, building close relations with them. and provides a forum for ideas in programs such as “La Matinale,” “JT,” Canal+’s evening Maroc Telecom holds a position in the first rank for media quality with its generalist information and service portal Menara which, in February 2007, remained the leading Internet portal in Morocco and the leading French-language portal in Africa – Menara being available in two languages, Arabic and French. The year 2006 saw Menara’s recognition as a medium in its own right, with 3 million visitors per month viewing a total of 30 million pages. Bolstered by this success, and aware of its power to influence, Menara has the ambition of strengthening its editorial positioning during the year 2007 with the objective of drawing 70% of its news provided to Internet users from national and international press services (Maghreb Arab Presse, Agence France Presse, Al Jazeera, etc.) with 30% produced by Menara’s own team of

The editorial staff of i>TELE, the Canal+ Group’s all-news channel. i>TELE has become France’s leading journalists, divided into three main headings: all-news channel, with 10 million viewers per week in January 2007. interviews, analyses, and press reviews. 52 solidarity topromote humanrights. Universal Music Group,relaymessagesof own commitments andwiththesupportof In addition,manyartists,through their protection. encouraging awarenessofenvironmental a bookletthatincludesseveral messages was donewiththisalbum,whichalso contains recyclable, biodegradablepackaging.That UMG isalsothefirst“major”tosellCDswith countries includingGreece,ItalyandtheUK. The albumisinthetoptenforsalesseveral catastrophes. change andsupportforvictimsofnatural missions areraisingawarenessofclimatic Artists’ ProjectEarth(APE)association,whose All profitsfromsaleofthealbumgoto and TheKaiserChiefs. – suchasU2,Coldplay,Sting,JackJohnson, the greatestnamesinworldpopandrock Cuba’s famousBuenaVistaSocialCluband Best MobileStrategyGamein2006. such as in developingitshistoricallyorientedgames, Vivendi Gamesappliesthesamerigorousness connect fromcountriesotherthanMorocco. concerns ofInternetusers,agreatmanywhom open viewpointwhileremainingattentivetothe Menara’s goalistoprovideanobjectiveand called with severalofitslabels,producedanalbum In 2006,UniversalMusicGroup,together awareness ofsustainabledevelopmentissues. contributes toraisingitsvariousaudiences’ Via itsmessagesandactions,Vivendi mobile versionof gamers theopportunitytoplayongo.The developed byVivendiGamesMobile,giving mobile versionofthePCgamehasalsobeen that ishistoricallyconsistent(seebelow).A that playersinteractwithinagameuniverse works andbroughtinhistorianstoensure Game developershavestudiedmanyhistorical (firefighters forfireprotection,etc.). building forums,etc.)andtheirprotection for supplyingwater,providingpedestrianareas, being ofitscitizens(constructionaqueducts builds thecitywhilekeepinginmindwell- daily lifeinthetimeofJuliusCaesar.Theplayer that faithfullyreflectsRomanarchitectureand 2006, playersmovethroughanenvironment game publishedbySierraEntertainmentin

DEVELOPMENT OF SUSTAINABLE AWARENESS ENCOURAGING PUBLIC Rhythms del Mundo del Rhythms Caesar IV Caesar Caesar Caesar . Inthisurbanconstruction was named Airgamer’s was namedAirgamer’s , bringingtogether the greatarchitectural treatise of VivendiGames,stands outforitsstronghistoricaldimensionand graphicsthatappeartobedrawnfrom page 54). policy (seecommentsbyChristineCauquelin, issues viaanambitiousdocumentaryeditorial even moreinvolvedinanalyzingmajorsocietal illustrates Canal+’sdeterminationtobecome The 2006-2007programmingschedule development issues. and raisingawarenessofsustainable- this missionofdisseminatinginformation The Canal+Groupisfullycommittedto Caesar IV Caesar Earth, whosegoalsareraisingawarenessofclimaticchangeandaidingvictimsnaturalcatastrophes. All profitsfromthesaleofalbum,producedbyUniversalMusicGroup,gotoassociationArtists’Project , anurbanconstruction andstrategygamepublishedin2006bySierra Entertainment,adivision De Architectura Architectura De of Vitruvius(1 st centuryAD). 53 OUR SPECIFIC ISSUES Sharing knowledge

Canal+ Group also gives free advertising time (3,200 spots in 2005, 3,650 in 2006) to non- governmental organizations, foundations, and international institutions like UNICEF, Action contre la Faim, the World Food Program, Handicap International, and others in order to increase public awareness of such causes as children’s rights, the struggle against hunger, AIDS solidarity, disability, and global emergencies. SFR has mobilized to make technology accessible to persons most in need of protection and continues its long-standing commitment to the causes of disability (in 1997, SFR entered into a partnership with the HandiCapZéro association) and protection of children (SFR has With “Les Nouveaux Explorateurs,” Canal+ offers a new documentary series, each Sunday afternoon, for better understanding our world and reviving the spirit of exploration. In September 2007, two Papuan explorers and supported La Voix de l’Enfant since 2001). their friend Marc Dozier will offer a surprising new slant on how Western society is organized. In order to better communicate with its customers about its citizenship commitments, SFR put terminals dedicated to sustainable development actions in 260 “espace SFR” sales outlets during the last quarter of 2006. Since January 2007, a new collection of They provide customers with information documentaries entitled “Les Nouveaux about products and services for disabled Explorateurs” (“The New Explorers”) offers an persons, for example (see pages 23 and 35), opportunity to discover the wealth of our planet rules of proper behavior when using a cell and consolidate the knowledge necessary for phone in public, and recycling of cell phones a broadened vision of the world. (see page 39). Of a total of 120,000 used mobile phones collected, 90,000 were taken back to Planète, the benchmark documentary “espace SFR” outlets. For each phone collected channel in France and part of the Canal+ along with its battery, seven euros are donated Group, has been informing its audience to the La Voix de l’Enfant federation of child- about environmental issues since 1988 by abuse advocacy associations. programming numerous documentaries and thematic evenings devoted to environmental Maroc Telecom again participated in the issues such as global warming, renewable “Operation Clean Beaches” partnership energy sources, waste production, etc. In with the Mohammed VI Foundation for 2005 Planète became, as it remains, the Environmental Protection. In 2006 the leading documentary channel available on operator built infrastructure and cleaned digital terrestrial pay television. 14 beaches in Tangier, M’diq, and Fnideq.

Christine Cauquelin, Head of documentaries, Canal+ Group September 2006 marked the launch of a new, stronger documentary policy. Providing an opportunity to see the world in a different light and understand the issues and changing trends that are re-shaping that world are the goals Canal+ has set for itself this year. Through an ambitious collection of prime-time documentaries on society, we’ve dealt with the complex relationship the French have with the world of work, justice as regards juvenile delinquency, senior citizens, working in the suburbs, everyday racism, and the state of France’s prisons. These are topics that require long preparation (between a year and 18 months of immersion and investigation) to give our subscribers real, documented expertise – a real alternative to headline-oriented TV evening news programs. These are films that provoke thought, take stands, and encourage discussion of the major issues we all have to face. To avoid reducing our field of vision to France alone, once a month, “La Séance Doc” gives the reins to talented foreign filmmakers who show us their point of view on the world in feature documentaries, most of which are screened in cinemas. Since January, we’ve tried to bring that humanistic outlook and curiosity about others to a weekly family series, “Les Nouveaux Explorateurs.” A new generation of passionate adventurers take us around the planet to meet our contemporaries and give us another reading of the world, each in his or her area of special interest. Looking critically and constructively at society, communicating the excitement of discovery and the love of adventure to our subscribers and opening their eyes to another way of seeing the world to understand it better… that is what we’re trying to do with documentary at Canal+.

54 enjoy thebestIndian filmsandTVseries, group, subscribers onRéunionandMauritius and ZEENetwork, India’sleadingmedia in December2006betweenMedia Overseas Overseas, thankstoapartnership cemented music, andliterature). its forms(painting,sculpture,design, film, and thewealthofartisticheritage inall artists, thetalentsofyoungergeneration, France, bearswitnesstothevitalityofAfrican (another subsidiaryoftheCanal+Group)in in AfricaandthenonthePlanètechannel program, broadcastviaCanal+Horizons regions oftheplanet.Thismonthlycultural to Africanculturesandtheirinfluenceinother 2006 withthemagazine“Afrik’art,”devoted continent, enricheditsofferingofprogramsin pay channel,coveringtheentireAfrican Canal+ Horizons,theleadingFrench-language process ofbuildingbridgesbetweencultures. sub-Saharan Africa–isamajorplayerinthis CanalSat intheOverseasTerritoriesand France SA–operatorofCanal+and Media Overseas,asubsidiaryofCanal+ digital terrestrialtelevision(DTT). i>TELE hasbeenaccessiblefreeofchargeon and radio.Itsaudienceisevenlargersince policy ofthisprogram,uniqueinFrenchTV information arethekeywordsofeditorial tradition, andpositivehandlingofnews clichés, makingreferencetoAfricanoral reality oftheAfricancontinenttoday.Avoiding magazine, “i>Afrique,”whichechoesthe channel tooffertelevisionviewersaweekly channel i>TELEistheonlyFrenchinformation contribute activelytothisdialogue.Itsall-news The variousentitiesoftheCanal+Group citizens fromdifferentpartsoftheworld. and canencouragemutualunderstandingof has aninfluenceonthedepictionofcultures to produceanddistributecontent,Vivendi Through itsinternationalstatusandability awareness ofenvironmentalprotection. a chancetoparticipateinactionsforraising summer visitors,bothadultsandchildren, awareness ofenvironmentalissuestooffer series ofsummereventsonbeachestopromote “Clean Beaches,”MarocTelecomhasuseda Since 2002,andinlinewithitssupportfor (see page37). the site,safety,informationforvisitors,etc. cleanliness, arrangementandmanagementof label recognizingsuchfactorsaswaterquality, authorized toflytheBlueFlag,aEuropean Achakar beachinTangierwasofficially The operation’ssuccesswasrecognized:

BETWEEN CULTURES ENCOURAGING DIALOGUE educational stepping-stones. extend itscontentoffering in2007.Thesite,offeredArabicand French,contributesactivelytolaying Bolstered byitssuccess, MenaraJunior,thespecialchildren’sarea ofMarocTelecom’sMenaraportal,will United NationsinTunisNovember2005. Information Society,heldundertheaegisof e-content projects”attheWorldSummiton Menara Juniorwasnamed“oneofthebest a monthwereusingthesite. various topics.In2006,some30,000visitors editorial teamwithcommentsorquestionson Junior’s pagesletsyoungsterspepperthe to discoverothercultures.OneofMenara can trytheirhandatjournalismorstrikeout the Menaraportalwhere,forexample,they offers youngWebsurfersaspecialspaceon The MoroccanoperatorMarocTelecom questions andproposinganswers. and discoveringtheirdifferencesbyasking themselves, whohavefunexploringtime program ishostedinlargepartbychildren a newweeklyprogram,“Canaille+.”The younger audiences.Canal+hascreated encouraging mutualunderstandingbetween Several initiativesarealsocontributingto subcontinent. news fromthepointofviewIndian 2007), andhaveaccesstointernational subtitled inEnglishandFrench(asofSummer 55 OUR SPECIFIC ISSUES New uses New uses

With new modes of consumption of content developing due to the technological changes brought about by broadband and mobile, Vivendi makes efforts to analyze how these new usages can best contribute to the progress of the group’s sustainable development process.

NEW USES… distribution of their repertoire and meeting After launching the first bundle of live TV an ever-increasing demand for mobile music channels on mobile devices in June 2005, New modes of access to content are products in many countries (Germany, CanalSat Mobile and SFR strengthened their multiplying (video on demand, the Internet, Australia, the United States, France, Japan, partnership by marketing, in January 2007, the mobile telephony, mobile television, etc.), the UK, etc.) first unlimited television package. This fixed-fee creating new habits on the part of consumers. plan lets subscribers watch television live on In France, SFR has leveraged consumers’ Content itself is also diversifying. Regulations an SFR mobile with no limit as to duration on enthusiasm for new uses to become the are evolving. The modernization of the more than 40 channels offered by CanalSat leading mobile-music platform. In 2006, “Television Without Borders” directive is Mobile, including France 2, France 3, i>TELE, SFR Music logged a total of four million aimed at making Europe’s audiovisual sector i>TELE flash (the mobile version of the all- downloadings of titles (compared to 655,000 more competitive and at the same time news channel), and TF1. In April 2007, SFR in 2005), 220,000 downloadings of music consolidating characteristics like protection and the Canal+ Group also launched Canal+ videos, and one million music TV sessions. of minors, cultural diversity, and pluralism Chaîne Mobile, a new channel specifically The number of users of the SFR Music service in the media. designed for cell phones, available 24/7 via increased fourfold, from 150,000 in 2005 to Vodafone live!, the SFR multimedia portal. Vivendi is keenly aware of the importance 630,000 in 2006. Canal+ Chaîne Mobile lets SFR subscribers of digital content and this has taken The Canal+ Group has also seized new with a 3G/3G+ mobile phone watch all concrete form via new music distribution opportunities in the digital world, thanks the unencrypted programming on Canal+: platforms, offerings of video on demand, in particular to the development of video on “La Matinale,” “Les Guignols de l’info,” and experimentation with mobile television, demand (VOD) with CanalPlay, which became “Le Grand Journal,” “Dimanche+,” etc. among other areas. one of France’s leaders in that sector. CanalPlay In the light of the excellent results of the Universal Music Group, the market leader offers more than 2,000 video-on-demand titles, experiment launched jointly by Canal+ in distribution of digital music (with the including more than 1,300 feature films from Group, SFR, Nokia, and towerCast, ending largest catalogue on the market; see pages studios as prestigious as 20th Century fox, Sony- in June 2006, the deployment of personal 48-49), has taken many initiatives, both on Columbia, Pathé, Europa Corp, StudioCanal, mobile television will take place in 2008 the Internet and on mobile devices, aimed at and DreamWorks. Nearly 2.4 million videos under the conditions provided for in the extending the promotion of its artists and the were purchased in 2006 via CanalPlay.

Martine Brousse, Director, La Voix de l’Enfant (Child’s Voice) Mobilizing young people Mobile telephony continues to surprise us! Wireless communication means that you can talk, send an SMS messages, or send a photo even if you’re in the mountains, at sea, or at the opposite end of the world. But even more, it gives you the brand-new possibility of participating in public generosity by making a single call. With handbills and brochures from charitable causes piling up in our mailboxes, in 2001 SFR had the innovative idea of launching a new way to give without having to look for a pen, your checkbook, or an envelope, simply by entering a 4-digit number like 8649 (“VOIX”) to make a donation to help protect children. This new way of collecting donations, within everyone’s reach, has shown how generous young people really are. In letters, e-mail messages, and phone calls, they’ve told us how much they approve of this initiative, which gives them a chance to make a donation that suits their limited means quickly and easily. This opportunity of showing their solidarity is quite new to them and shows how eager they are to get involved. But beyond donations, cell phones have also provided a new response to the numerous cases of young runaways in distress and parents worried about a child’s absence. Finally, with the new technologies opening up new perspectives every day, an SFR WAP portal has been opened with a list of emergency phone numbers for young people. And this year, for the first time anywhere in the world, a program for making appeals for donations by video phone was launched by SFR. These uses of new technologies have shown that young people are indeed mobilized and are highly committed citizens.

56 48-51). Theycontribute topreservingand statement byRob Wells,above,andpages their expression, andtheirtalents(seethe vehicle forpromotingartists,the diversityof the newtechnologiesarean excellent From thepointofviewcultural diversity, countries andcultures. game’s developersandplayersfrom different 45), contributestocreatingtiesbetweenthe that rulesofconductarefollowed(seepage managers ofplayercommunitieswhoensure This discussionforum,supervisedbythe simply commentingonthegameitself. of playersandengageindialoguebeyond division, areencouragedtojointhecommunity Blizzard Entertainment,aVivendiGames Game Players oftheMassivelyMulti-PlayerOnline 10,000 songtitlestothesite. young peoplehaveregisteredanduploaded After sixmonthsinexistence,some6,000 phase initssupportformusicalcreativity. 2006, theoperatormarkedanimportant its SFRJeunesTalentsportalinSeptember to demonstratetheircreativity.Increating This newtechnologyalsostimulatesthem Director ofLaVoixdel’Enfant,opposite). (see thecommentsbyMartineBrousse, a chancetoplaygood-citizenshiprole Mobile telephonyisgivingyoungconsumers participation, communication,etc. new technologies–learning,creativity, works topromotetheadvantagesof priority issues(seepages44to47),butalso made theprotectionofminorsoneits generation. Vivendianalyzesrisksandhas new technologiesrepresentfortheyounger the issueofrisksandopportunities Numerous studies,essentiallyintheEU,raise its sustainabledevelopmentapproach. areas aroundwhichVivendihasstructured defined, inkeepingwiththethreespecific view ofitspartners.Severalareashavebeen to betterunderstandthedifferingpointsof of anetworkexpertswithincivilsociety a subjectVivendiisstudyingwiththeaid convergence ofcommunicationnetworksis The impactofthenewusesenabledby by November30,2011atthelatest. complete switchoverfromanaloguetodigital creates alegislativeframeworkensuring television willbeimplementedinFranceand definition (HD)televisionandpersonalmobile 2007. This lawstipulateshowhigh- 7, March “Television oftheFuture”law,promulgatedon

DEVELOPMENT FOR SUSTAINABLE … PUTTOWORK World of Warcraft of World , developedby – willbeenjoyedaroundtheworldlaterthisyear. and establishingnewreportingaccountingprocesses. include changinginter-companylicensingandrepertoiremanagementsystems,adjustingpublishingprocedures, a traditionalretailertoracktheminthelimitedspaceofrecordshop–therearestillissues.These digital repertoireinaUSstoremayseemsimple–anditisfarsimplerthanshippingCDsconvincing for anyterritoryontheplanettoselllocallysignedrepertoirethroughdigitalretailerinotherterritory. France’s presidential electioninApril2007. the fiveSundays precedingthefirstroundof weekly politicalbroadcast“Dimanche+” on hearing-impaired audiencestofollow thelive exceptional operationforallowing deafand An exampleisCanal+’sdeployment ofan openness towardsothercultures. populations, buildingdigitalfilmlibraries,and encourages accesstocontentforisolated the developmentofnewtechnologies From thepointofviewsharingknowledge, 125,000 selectionsavailableonline. and jazz,www.classicsandjazz.co.uk,with largest Websitedevotedtoclassicalmusic diversity withtheJanuary2007launchof program anditsroleaspromoterofcultural Music Groupextendedits“digitalarcheology” via alternativedistributionmethods.Universal consumers’ continuedwillingnesstopurchase strength ofUMG’srepertoireaswellthe this ongoingdigitizationprojectillustratesthe eager consumers.Theremarkablereactionto 500,000 downloadshadalreadybeenmadeby countries, themajorityinEurope–,morethan and accessiblebydigitaldistributorsin20 Germany, FranceandtheUKalreadydigitized 12,000 recordingsfromtheUMGcataloguein retail outlets.ByDecember 2006 – with were virtuallyimpossibletofindattraditional from thearchivesofUniversal Music that 100,000 previouslyunaivalablerecordings several years,whichwoulddigitizeatotalof International launchedavastprogram,tocover In February2006UniversalMusicGroup musical works. new leaseonlifetofilms(seepage51)and the world’sbestknownartistsbygivinga promoting theartisticheritageofsome This isallbeingdone.TheresultwillbethatUniversalMusic’sglobaldomesticrepertoire–initsdiversity We arenotfarfromachievingthisgoal. Althoughtheeffortinvolvedin,forexample,placingItalian-signed Universal MusicGroupInternational Rob Wells,SeniorVice-President,Digital, traditional businesstoadigitalisnotwithoutpain.Theend-gamewouldbe This isatransitionalperiodforus,asittheentireindustry,andtransitionfrom time andcontinuestoevolve. management, reportingandaccountabilitytotheartistshasevolvedoveraperiodof and extensive.TheITinfrastructurethatisinplacetomanagethedistribution,rights- repertoire throughcentralsystemstoanyterritory-specificdigitalretailerarecomplex This infrastructure,bearinmind,hasalsoevolvedfromthetraditionalbusiness. Theissuessurroundingownershipofrightsandourabilitytodistribute generations. concern foritsresponsibility tofuture to thediscussion,motivatedby its constant endeavoring tostrengthenitscontribution rapidity oftechnologicalchange. Vivendiis of stakeholdersandtheunprecedented rich andchallengingduetothediversity uses andusagesoftechnologyisespecially issues astheyareaffectedbythenew This analysisofsustainabledevelopment communication betweenpeoples. to othercountries,contributingbetter aid them.Theofferingmaybeextended (Arabic andFrench)customerserviceto (music, news,sports,etc.),withabilingual rates andaccessingmulticulturalcontent possibility ofcommunicatingatadvantageous family, personal,orprofessionaltiesthe Maghreb, France,andBelgiumwhohave Maroc Telecom,offersresidentsofthe This newmobileoperator,asubsidiaryof both sidesoftheMediterraneantogether. Telecom isworkingtobringcustomerson With thecreationofMobisud,Maroc build theirowndigitalfilmlibraries. service, makesitpossibleforfilmloversto Canal+ Group’slegalvideodownloading and ahigh-definitionoffering–,CanalPlay, downloading offilmsbywritingthemtodisc offerings inJanuary2007–permanent Elsewhere, withitslaunchoftwoinnovative of “Dimanche+”permanent. programming department,makingsubtitling and willbecontinuedbythechannel’s The operationwasconsideredasuccess 57 OUR SPECIFIC ISSUES 2006 sustainable development indicators

METHODOLOGY During 2006, new business-unit representatives be disseminated and implemented at the level had access to this application for entering of each business unit, resulted in discussions Standards and guidelines their environmental data directly. They were with the representatives of the subsidiaries given training to familiarize them with the aimed at moving forward with this process. Economic, social, and environmental application. performance indicators presented in this Opinion of the external auditor report refer in particular to France’s New The protocol was revised in 2005 to include Economic Regulations Act (NRE)* and the changes in the consolidation scope and to For the fifth consecutive year, the Sustainable Global Reporting Initiative (GRI) Guidelines**. incorporate suggestions by subsidiaries Development Report has been reviewed The tables below show the correspondences regarding its use. Revisions continued in 2006 externally by one of the Auditors. The review between these two sets of guidelines. and dealt more specifically with the part of the includes the procedures used to report, protocol that concerns social and environmental validate and consolidate the social and This is the seventh year Vivendi has reported indicators. The analysis was conducted taking environmental indicators. under the GRI, and the group monitors into account the pertinence of the indicators in proposed changes thereto aimed at improving In conformity with recent changes in Auditors’ the light of changes in the group’s activities. reporting on sustainable development. In professional standards, the opinion of the October 2006, Vivendi took part in the The Auditors’ opinion issued for the period external Auditor published at the end of International Conference on Sustainability and 2005, which recommended that the protocol the present Report and corresponding to Reporting held by the GRI in Amsterdam. “agreed-upon procedures” no longer includes a paragraph entitled “Conclusion.” During this conference, the GRI presented its new Guidelines (G3) based on the Framework for sustainability reporting proposed by CORPORATE GOVERNANCE: LEGAL OBLIGATIONS, the GRI in 2002. These Guidelines simplify reporting and provide protocols defining all the indicators. The Guidelines consolidate the GRI’s position as the de facto world reference of members of the Supervisory Board for organizations reporting on sustainable development. Independence

Vivendi also participates in the work being of auditors in relation to management conducted by France’s National Accounting Board on societal reporting, in liaison with actors in the private sector. of members of the Supervisory Board toward each other Reporting on social and environmental indicators Pursuant to the provisions of a group- implemented protocol, collection of social of members of the Supervisory Board and environmental information is done by entering all data using an on-line application developed by Vivendi’s IT department. * New Economic Regulations Act (NRE). Involvement in decisions France’s New Economic Regulations Act requires all French corporations listed on a regulated securities exchange to disclose their social and environmental of members of the Management Board performance in their Annual Report (see law no. 2001-240 of May 15, 2001, Article 116; Decree no. 2002-221 of February 20, 2002). ** Established in 1997 by the Coalition for Environmentally of shareholders Responsible Economies (CERES) in partnership with the United Nations Environment Program (UNEP), the GRI is a long-term, international, multi-stakeholder of other stakeholders process whose mission is to develop and disseminate guidelines for voluntary use by organizations in reporting on the economic, environmental and social dimensions of their activities, products and services. The GRI has not verified the contents of this report, nor does it take a position on the reliability of information reported herein (see www.globalreporting.org).

58 RECOMMENDATIONS, ANDEXPECTATIONS (6) IncludingpaymentstoshareholdersofVivendiExchangeco(formerSeagram)worth5millioneuros. (5) NumberofentitledsharesatJanuary1,afterdeductioncashhelddividendpaymentdate. (4) ExcludingmembersoftheManagementBoard. (3) ThisnumberconcernsallthemembersofManagementBoardandCEOforperiodJanuary1-April28,2005. (see page258ofthe2006AnnualReport)grantedtomembersSupervisoryBoardandManagementasperIAS24Par (2) Totalamountsbookedbythegroupunderfixedandvariableremuneration(includingemployer’scontributions),otheradvanta (1) Certainchoicesastothepresentationofinformationadoptedin2006havebeenapplied2005figuresforsake (4) Otherissues putforwardbystakeholders. (3) Sarbanes-OxleyAct. (2) ViénotorBoutonreports. into accountcommonuniversity andprofessionalorigins,frequentlyencountered amongFrenchBoardmembers. of anothercompany;not tohavehadcommercialrelationswithoneof thecompany’scustomersorsuppliers.Overand beyondthe (1) AsdefinedbytheBoutonReport:nottobeor havebeenanemployeeorcorporateofficerofacompanywithinthegroupduri Percentage ofquestionsoncorporatesocialresponsibility atAnnualShareholders’Meeting Having employeesrepresentedbyamemberon theSupervisoryBoard Publish ballotresultsoftheresolutionssubmitted toshareholders Publish theparticipationrateofshareholdersatAnnualShareholders’Meeting Management Boardmembers’participationrate Number ofmeetingsManagementBoardmembers (excluding non-Frenchcompanies) Maximum of5termsofficecumulatedpermembertheManagementBoard every 3years Assess theperformanceofSupervisoryBoard Publish thenumberofannualCommitteemeetings Publish theexistenceofAudit,Appointment,andRemunerationCommittees in SupervisoryBoardmeetings Publish thenumberofmeetingsandaverageparticipationratemembers (excluding non-Frenchcompanies) Maximum of5termsofficecumulatedpermembertheSupervisoryBoard (training, career,family) no cross-holdings,whodonotsitonthesameBoards,andhavecommonorigins Publish thepercentageofmembersSupervisoryBoardwhohave Board withoutpresenceoftheManagement Publish thenumberofmeetingsbetweenauditorsandmembersSupervisory Publish thebreakdownofauditors’auditandconsultingassignments Maximum averagetermofoffice5yearsformemberstheSupervisoryBoard Presence ofatleast30%independentmembers 50% ontheRemunerationCommittee premium incurredforearlyredemptionofloans,etc.) subscriber management,etc.) purchase ofprograms,royalties, Dividends paidtoshareholders Income taxespaid and serviceproviders Amount distributedtosuppliers Vivendi grouppayrollandbenefits Number offreesharesallocated Corporate officers’totalremuneration by businessunit Breakdown ofconsolidatedrevenues by geographicalarea Breakdown ofconsolidatedrevenues Consolidated revenues allocated Number ofstockpurchaseoptions and seniorexecutives’remuneration Determining criteriaofthecorporateofficers Payments tobanks 2006 ECONOMICINDICATORS (2) (1) (interest paidonloans;

(4) (distribution, (4) (2) and100%ontheAuditCommittee (1) (2) (2) ontheSupervisoryBoard 5.481 million stock purchase options including 5.481 millionstockpurchaseoptionsincluding e h 06Ana eot ae 710Seethe2005AnnualReport,pages94-97 See the2006AnnualReport,pages97-100 and 1million 1.480 million to the corporate officers 1.480 milliontothecorporateofficers 456,968 including123,336to 1,387 millioneuros 201mliners1,5 ilo uo EC1 11,954millioneuros 12,021 millioneuros the corporateofficers ,8 ilo uo ,8 ilo uo EC1 1,386millioneuros 1,381 millioneuros ,27mliners214mlinersEC1 2,174millioneuros 2, 227millioneuros 004mliners1,8 ilo uo EC1 19,484millioneuros 20,044 millioneuros 6 ilo uo 0 ilo uo EC1 703millioneuros 167 millioneuros (4) 41 millioneuros for the ten largest allocations forthetenlargestallocations e oe lpEC1 See coverflap See coverflap (3) 06dt 2005data 2006 data (3) (2) (2) (4) , (2) (4) (2) (5) uevsr or AuditCommittee Supervisory Board Appointment ofanemployeememberthe SupervisoryBoard,asdefinedinthecompanybylaws, Audit Committee Existence ofinternalregulationsfortheSupervisoryBoardandeachitsCommittees 0 0%10 0 80% 80% 100% 100% 80% Published onthesamedayofAnnual Shareholders’ Meetingonwww.vivendi.com Published onthesamedayofAnnualShareholders’Meetingwww.vivendi.com 6233 when employeeshareholdersrepresentat least 3%ofthecapitalstock and 1.290million 9.071 million stock purchase options including 9.071 millionstockpurchaseoptionsincluding Assessment carriedoutin2006(seeAnnualReport,page109). 2.48 million homogeneity. Human Resources ng thepreviousfiveyears;nottobeundercontrol oftheexecutive 1,152 millioneuros ges (stockpurchaseoptionsandfreeshares)allretirementplans recommendations ofthe BoutonReport,theextendeddefinitiontakes 46 millioneuros 11 meetings;participationrate=91% Committee See 2006AnnualReport,page107 (3) (4) to the corporate officers tothecorporateofficers forthetenlargestallocations agraph 16. N/A Human Resources 41% in2006 Committee Compliant Compliant (1) 4 years 98% 80% (2) 20 (5) (6) 2 Corporate Governance Committee Governance Committee Corporate NRE Act ✓ ✓ ✓ Committee Strategy guidelines Committee 2006 GRI Strategy EC1 59 INDICATORS 2006 SOCIAL INDICATORS

2006 GRI 2006 Data 2005 Data NRE Act guidelines

Total staff 34,694 34,031 ✓ LA 1

Incoming employees

New hires 5,056 5,746 ✓ LA 1

Temporary hirings 49.7% 48% ✓ LA 1 Permanent hirings 50.3% 52% ✓ LA 1 Temporary hirings (France*) 52% 46% ✓ LA 1 Permanent hirings (France*) 48% 54% ✓ LA 1 Recruitment difficulties None None ✓ Outgoing employees Staff reductions and departures 4,557 5,232 ✓

Staff reductions on economic grounds 301 1,255 ✓

Departures excluding staff reductions on economic grounds 4,256 3,977 ✓ LA 2

Staff reduction and employment preservation plans ✓

Working week (in hours) Average weekly duration - full-time 37.5 37.4 ✓ Annual yearly duration - full-time 1,742 1,753 ✓ Average weekly duration - part-time 27 27 ✓ Annual yearly duration - part-time 1,320 1,335 ✓

Absenteeism (days/employee) 8 11.3 ✓ LA 7

Reasons for absence (France*) ✓ Overtime hours 434,999 364,897 ✓ Gender equality

% of women in the group 38% 38% ✓ LA 13

% of women in managerial positions 34% 34% ✓ LA 13 Disabled persons employed

211 employees 187 employees ✓

Labor relations

Collective agreements 64 57 ✓ LA 4

Number of personnel representatives (France*) 779 879 Health and safety

Frequency rate of workplace accidents with lost days 3.2 3.5 ✓ LA 7

Severity rate of workplace accident with lost days 0.13 0.12 ✓ LA 7

Employees trained in safety 5,818 2,504 ✓

Training

Training expenditure/payroll 2% 2.4% ✓

Average training duration/number of employees trained 24 hours 30.3 hours ✓ LA 11

Average training duration/number of employees trained (France*) 29.6 hours 31.5 hours ✓ LA 11

* metropolitan France

60 at increasingjobeffectiveness givenallemployeesofVivendi’s corporate headquarters(seepage27). by staffreductionsin certainentities.In2006,thenumberofhours oftrainingatcorporateheadquarterswas thehighestin The group’sFrenchsubsidiarieshaveahigh averagetrainingdurationperemployeetrained.Thedecreasein2006isduetoare With thismethod,eachemployeetrainedcounts forone,regardlessofthenumbertrainingcoursestaken. The averagedurationoftrainingiscalculated bycomparingthetotalnumberofhourstrainingtoemployeesre In 2006,MarocTelecomimplementedacampaign toincreaseemployees’awarenessofinformationsecurityanditsimpacton Maroc the indicatorusedhereistotaloutlayfortraining comparedtopayroll.Thisaveragedoesnotreflectvariationsbetweenbusi The percentageofthepayrolldevotedtotraining isawidelyusedindicatorinFrance.OutsideFrance,thisnot exercises). practical trainingofvolunteers(10personsreceivedfirst-aiddispensedbya Red Crossinstructorand26volunteer“ program (twohalf-daymodules)begunin2005.AtVivendiGames,allpersonnelwho workswingshiftsreceivedsafetytraining.I In 2006,thenumberofemployeestrainedinsafetyincreasedsharply,particularat SFRandVivendiGames.employeescon Calculation method:numberofworkingdayslostx1,000/employeeshours theoreticallyworkedperyear(estimatedat other sectors(suchasconstruction). The severityrateofworkplaceaccidentswithlostdayswasstablebetween2005and2006. Itshouldbepointedoutthatthegro Calculation method:numberofworkplaceaccidentswithlostdaysx1,000/employees xnumberofhourstheoreticallyworkedpery This decreaseistheresultofstrengtheningsafetymeasuresinCanal+Group, atMarocTelecom,andVivendiGames The frequencyrateofworkplaceaccidentsdiminishedsignificantlybetween2005and 2006. non-discrimination, health,andsafety.In2006,32collectiveagreementswereenteredintotheFrenchsubsidiaries. The newcollectiveagreementsenteredintointhegroup2006concern,notably,remunerations(34%)andworkingconditions(1 2003 andwhichwasrenewedinthespringof2006,aimedatincreasinghiringratefordisabledworkerscompanyover The numberofdisabledworkersinthegroupincreased2006,notablyduetoSFR’songoingcommitmentthisarea,witha “an individualwhoseprospectsofsecuring,retainingandadvancinginsuitableemploymentaresubstantiallyreducedasaresul The definitionofa“disabledperson”isbasedoneachcountry’slaws.Whentherearenoapplicablelaws,thegiven The percentageofwomenamongmanagementpersonnelandseniorexecutives(atVivendi’sheadofficeinthegroup’sbusiness and ahigherlevelofrecruitingmalesatVivendiGames). This figureremainedstablebetween2005and2006,withdisparitiesentities(theincreaseinrecruitingofwomenatCa Overtime referstohoursbeyondthecontractualnumber;in2006,82%ofovertimewasUnitedStates(64%)andMorocco(18 In 2006,themajorityofworking-dayabsenceswereforpersonalreasons(51%)andfamily(31%)suchasmaternitypa encourages familyleavesuchasmaternityandpaternityleave. starting abusiness...).InFranceitwas14.2daysperemployeeandyear.Thisdifferencecanbeexplainedinpartbythe At grouplevel,absenteeismwasonaverage8daysofabsenceperemployeeyear(since2006,thisfigurenolongerincludes Absenteeism isdefinedasabsenceonanyworkingdayexcludingpaidvacationtime,trainingdays,timeoffforunionactivities Differences betweenweeklyandannualduration20052006aretheresultofhomogenizationdefinitionswithin most commonlyfoundwithinthecompanyforfull-timeemployees.Vivendi’sFrenchsubsidiariesapplylawregardingnegotiate Since approachestoworkdurationvaryfromonecountryanother,thenumberofhoursworkedvariesasaconsequence.Theave and outplacementservices.VivendialsoestablishedreclassificationmeasuresforemployeesoutsideFrancewheresuch on theCorporateintranet,reclassificationleave,trainingleavetoenableemployeesincreasetheirqualificationlevel,as In France,measuresforreclassificationandassistanceofferedtoemployeesaffectedbyrestructuringwereofseveraltypes:i Reasons fordeparturesweremainlyrelatedto:resignation,individualfirings,endoffixed-termcontract,andretirement. of restructuringprogramsbegunin2004and2005Asia-Pacific,theUSA,UK. operations undertakeninprecedingyearsbyUMG,VivendiGames,andMarocTelecom.DeparturesfromUMG(72%oftotalstaffredu The numberofstaffreductionsoneconomicgroundsin2006decreasedsharplycomparedto2005.Staffgro The figuresindicatethenumberofdeparturestemporaryandpermanentemployees. None ofthesubsidiarieshavereportedanyparticulardifficultieswithrecruitingoverpasttwobusinessyears. The rateofpermanenthiringsinFrancerepresentsthenumbercontracts(1,161)total(2, which isroughlyequivalenttothemaximumdurationofatemporaryworkcontractinFrance. In ordertoconsolidatethisindicatorworldwide,wehavechosenconsiderhiringsover18monthslongaspermanentandhirin which areconsideredhiringsintheUnitedStates. The notionofhiringvariesaccordingtocountry.Herethenumbernewemployeesalltypesisshown:temporaryhirings,pe by Canal+Group(OptimumReleasing),andVivendiGames(HighMoonStudios,SecretLairCenterscore). The increaseinstaffisrelatedparttovariationsthegroup’sscope2006dueacquisitionsbyUMG(ArsenalMusic, page 37.DataareconsolidatedatDecember31ofthereferenceyear. Social databybusinesssectoraredetailedinaseparatedocument, that Vivendihasdecision-makingpower. Social datarefertothegroup’sworldwidescopeandarefromcompaniesinwhichVivendiholdsmorethana50%share,orlesst Comments orreferences 2006 Statutory Financial Statements - Sociographics - Environmental Policy Environmental - Sociographics - Statements Financial Statutory 2006 in Convention No. 159 of the International Labor Organization is used: in ConventionNo.159oftheInternationalLaborOrganizationisused: existence of a company-level agreement on equality at SFR which existence ofacompany-levelagreementonequalityatSFRwhich t of a duly recognised physical, intellectual or mental impairment.” t ofadulyrecognisedphysical,intellectualormentalimpairment.” a periodofthreeyears. pplication of the agreement entered into in pplication oftheagreemententeredintoin , special leave, and workweek reduction. , specialleave,andworkweekreduction. sistance foremployeesstartingtheirownbusinesses, lways calculatedinthesamemanner.Forthis reason, leaves that suspend the contract, such as sabbaticals, leave for leaves thatsuspendthecontract,suchassabbaticals,leavefor ness sectors–from0.4%(UMG)to7.5%(Maroc Telecom). evacuation team”memberstookpartintwo the group,at52.9hours; thiscorrespondstotrainingaimed BG Productions,UMGRumania,andValeMusic), up’s business units are less exposed than companies in certain up’s businessunitsarelessexposedthancompaniesincertain nternal jobmobilitythroughpostingofinternalvacancies 1,750forthegroup). 435). duction intrainingforemployeesaffected in 2004and2005 ceiving trainingduringtheyear. rmanent hirings,andstudentsummerjobs, nal +Group,MarocTelecom,andVivendi’sheadoffice gs lessthan18monthsastemporary, n 2006,Vivendi’scorporateheadquartersalsostressed ternity leave,marriage,death,andmoving. d reductionoftheworkweek(“35-hourlaw”). . group. tinued receivetrainingunderthe“safetyawareness” rage weeklydurationisdefinedhereasthe 6%). Theotheragreementsconcernedsocialprotection, do notexist. ear (estimatedat1,750forthegroup). %). unds areessentiallytheresultofrestructuring units) isspecifiedinthetableonpage30. Telecom. ctions in2006)correspondtotheimplementation han 50%provided , 61 INDICATORS 2006 SOCIAL INDICATORS (continued)

2006 GRI 2006 Data 2005 Data NRE Act guidelines Social activities

Social activities (France*) 5,070,117 5,417,791 ✓

External resources Interim employees 5,635 7,268 ✓

Subcontracting 5,149 2,730 ✓

Territorial impact

Partnerships and projects 462 367 ✓

Actions to aid development of employment ✓

2006 ENVIRONMENTAL INDICATORS

Environmental data concern the group’s worldwide operations and apply to companies which meet specified threshold criteria in terms of environmental impact (number of employees, water and electricity consumption, waste production, etc.) For information on environmental data for each business unit, see the separate document 2006 Statutory Financial Statements – Sociographics – Environmental Policy, page 55.

2006 GRI 2006 Data 2005 Data NRE Act guidelines Water consumption (in thousands of cubic meters) 581.8 557 ✓ EN 9

Electrical energy consumption (in thousand kilowatt-hours) 404,914 363,531 ✓ EN 3

Use of renewable energy sources (in thousand kilowatt-hours) 1.42 N/A EN 4

CO2 emissions (in millions of kgs) 80.4 74 ✓ EN 16, EN 17

Waste production (in tons) 3,548.8 5,353 ✓ EN 22

Hazardous and special waste (in tons) 465.6 N/A EN 22

Non-hazardous waste (in tons) 2,837.1 N/A EN 22

Waste from electrical and electronic equipment (WEEE) (in tons) 245.5 N/A EN 22

Measures taken to limit the impacts on biological stability, natural environment, protected species, and wildlife ✓ EN 14

Environmental assessment or certification processes undertaken in the area of the environment ✓

Measures taken to ensure compliance of the company’s activities with environmental regulation ✓ and legislation

0.98 million 1.35 million Company expenditures for prevention of environmental impacts ✓ EN 30 euros euros Corporate (Paris Corporate (Paris Existence within the company of internal environmental management staff, training and information head office head office on environmental issues for employees, resources devoted to the reduction of environmental risks, and New York and New York ✓ as well as a procedure to manage environment-related accidents which have a consequence office): 1 office): 2 outside the company Business Business units: 8 units: 6 Amount of environmental risk provisions and guarantees except in the case where this information ✓ may prejudice the company in a current dispute or lawsuit Amount of compensation paid during the financial year arising from a court ruling relating ✓ EN 28 to environmental matters and the actions undertaken to repair environmental damage

62 in theformoffinancialsupportforviableprojectscreationordevelopmentcompanies(1,632validatedjobsandpayment These commitmentsapplybothtocreationofjobsrelatedVivendi’sbusinessactivities(449createdas12/31/06)and Vivendi hascommitteditselfbeforetheFrenchpublicauthoritiestocontributecreatingemploymentinregionsespeciallyim (UMG: 272;Canal+Group:34;SFR:115;MarocTelecom:7;VivendiGames:Corporate:27).87%oftheprojectsinwhich In 2006,Vivendiincreaseditsparticipationinpartnershipsorprojects.Thegroup’svariousentitiescreated and technicalsupportrelatedtonetworks(seepage53oftheseparatedocument The groupmakeslessfrequentuseofsubcontractingthancompanieswithhighpercentagesmanualworkers.Worksubcontracted One personwhohasbeenhiredseveraltimesiscountedasmanytherewereindividualhirings. Each entityisallowedtosetitsownpolicy,includingtheamountscontributed.Thisindicatorforgroup’sFrenchcompa In France,thenotionofsocialactivitiesincludesandculturaleventsorganizedincompanyprimarilyforemployees See thediagram“SourceofCO or useofconvectionheating.Indirectemissionsstemessentiallyfromelectricalconsumption(59.9millionkg)andoperationo Emissions ofcarbondioxideresultingfromVivendi’svariousactivitiesareextremelylow.Directemissionsstemtheuseo from renewablesourcesortheuseofthisenergytopowertelecommunicationsinstallations(seepage39). This figurecorrespondstothepurchaseofenergyfromrenewablesourcesbycertaingroupentitieslocatedinStateCali of theextensionscopereportingentitiesCanal+Group:For2006,datafromoperationalunitslocatedinth Electricity consumptionfor2006isupby11.4%.Thisincreasetheresultofgrowthgroup’sactivities,acquis The levelofwaterconsumptionincreasedby4.5%in2006overtheprecedingyear.Thisincreaseisrelatedtogrowthgro In 2006,Vivendireceivednonotificationsfrom aregulatoryagencyalleginglackofcompliancewithenvironmental,health,and In 2006,noVivendisiteorcompanybooked provisionsorguaranteesforenvironment-relatedrisks. Department bringstogetherrepresentatives ofthebusinessunitsandCorporatedepartmentstoincreasetheirknowledge that couldbeharmfultotheenvironment. These teamsworkcloselywithlocalemergencyteams,andinparticularfirefighters. Each majorsitehasanemployeeincharge ofenvironmental,health,andsafetymatters.Ateachmajorsite,ateamisinplace certifications. Thegrouphasdepartmentsinchargeofenvironmental,health,andsafety matters.Theycurrentlyincludeengine and healthsafetyissuesaswellorganizationofcontrolinspectionitssites aroundtheworld.Heisagraduate A Vice-PresidentforEnvironmentalAffairs,HealthandSafety,whoreportstoVivendi’s GeneralCounsel,isinchargeofsettin The figureincludesinternalprograms,surveillanceofactivitiesinthegroup’scompanies, andexpendituresrelatedtoenviron implemented eighteenenvironmentalmeasuresbasedontheISO14001standards,giving precisedirectivesforcompliancewiththe and safety.Atallmajorsites,anemployeeisinchargeofenvironmentalaffairs.Thisrepresentative isgivenappropriatetra Vivendi hasimplementedacomprehensiveprogramforensuringthecomplianceofitsbusiness activitieswithapplicablelegislat sites andonetertiarysite.Vivendi’scorporateheadquartersbegantheprocessofEMAS assessmentin2007(seepage37). and inparticularEMASISO14001certifications.Inlate2006,SFRobtained certificationofitsenvironmentalma their compliancewiththelawsandstandardsinforce.Approximately10sitesareevaluated eachyear.Groupcompaniesareenco In 2000,Vivendiadoptedaprogramofcompliancewithenvironmental,health,andworkplace safetystandardsandsinceimplement Vivendi’s businessunitshavelittleimpactonbiologicalstability,thenaturalenvironment,andprotectedanimalplantsp It includeswastefromtelecommunicationsequipment,computerandaudiovisuallightingequipment. This referstoprofessionalWEEE(purchasedbyasiteforitsinternaluse)andhousehold(placedonthemarket glass, andtextiles. This iswastegeneratedatthegroup’ssiteswhichnotofadangerousnature,suchasferrousandnon-ferrousmetals,paper (office consumables,batteries,paintandsolvents,oils,etc.) This istheinflammable,harmful,toxic,etc.wastegeneratedatgroup’ssites,aslistedinAnnexesIandIIofDecreeno. from electricalandelectronicequipment(WEEE)tobeidentifiedmoreprecisely. The amountofwasteproducedincreasedslightlyin2006.Belowarethedetailscategoriesbygroup 2 emissionsproducedbyVivendi”onthecoverfold. Comments orreferences Comments orreferences 2006 Statutory Financial Statements - Sociographics - Environmental Policy Environmental - Sociographics - Statements Financial Statutory 2006 ining consistent with his or her responsibilities. Vivendi has ining consistentwithhisorherresponsibilities.Vivendihas e OverseasTerritoriesandCanal+Polandhavebeenconsolidated. projects with462institutionsorassociations mental protectionateachoperationalsite. ition ofnewentitiesbyVivendiGames,andfinally, 2002-540ofApril18,2002relativetoclassificationwaste engineer inenvironmentaltechniqueswhohasprofessional ecies. andtheirfamilies.Thisnotionisdifficulttomeasureworldwide. ive and regulatory provisions regarding the environment, health, ive andregulatoryprovisionsregardingtheenvironment,health, nies. g internalrulesandproceduresrelatedtoenvironmental nagement systemforthreepilotsites:twostrategictechnical f thegroup’svehiclefleet(18.3millionkg). f backupgeneratorsincaseoffailureelectricalpower fornia (USA).Thefiguredoesnotincludeproductionofenergy pacted byunemploymentandindustrialrestructurings. for interveningincaseofaccidentsorreleases ofsubstances creationofjobsnotrelatedtoVivendi’sbusinessactivities, and whoseprocessingishandledbythesite). of10millioneurosas31/12/06)(seepage34). and cardboard,plastic,rubber,compositematerials,wood, Three timesperyear,Vivendi’sSustainable Development safetyrequirementsatanyofitsoperational sites. up’s businessactivities. ers, healthspecialists,consultants,andsafetyspecialists. uraged toobtaintheappropriateenvironmentalcertifications, group’senvironmentalregulationsandstandards. isinvolvedhavetodowitheducationalinstitutions. . Thismeansofpresentationallowsproductionwaste awareness ofthegroup’senvironmentalcommitments. ation oftheprogramhasassessed80sitestoensure in 2006wasmainlytheareasofcustomerservice ). 63 INDICATORS Opinion of the external auditor

External opinion of one of the Statutory Auditors on the reporting procedures implemented to establish the social and environmental performance indicators in the Sustainable Development Report

At Vivendi’s request, in our capacity as Statutory Auditors, we have carried out the work described below on the reporting procedures implemented to establish the 2006 social and environmental performance indicators contained in the Sustainable Development Report. These indicators were prepared under the responsibility of the company’s management. Our role is to express an opinion on the procedures used to collect the information, based on our work, which constitutes neither an audit nor a limited review of data as defined by the International Standards on Auditing (ISAs).

NATURE AND SCOPE OF OUR WORK Our work consisted of: ■ an analysis of the procedures used to report, validate, and consolidate the group’s social and environmental performance indicators; ■ discussions with the managers responsible for the collection of the data included in the Sustainable Development Report, at corporate headquarters and in certain operating units*.

COMMENTS We have the following comments to make regarding our work: ■ the social and environmental reporting procedures have been disseminated to the different contributors and applied in all the entities we observed; ■ the computer application for reporting social and environmental data has been made accessible to all the group’s entities and enriched with functionalities that strengthen processing of the data; ■ for one of the entities, the control process related to environmental reporting is in need of improvement; ■ the rules for determining scope are specific to each type of indicator – economic, social, and environmental; they are specified in each part of the report; ■ the comments in the report on each indicator mention the specific procedures used in determining it.

Paris - La Défense, April 26, 2007 Salustro Reydel Member of KPMG International Benoît Lebrun Marie Guillemot Philippe Arnaud Partner Partner Partner in charge of the Department of Environment & Sustainable Development

* Vivendi S.A., SFR, and Maroc Telecom (social indicators). Vivendi Games, Universal Music Group, Canal+ France (environmental indicators).

64 Sustainable development key figures* 2006

Universal Music Group > The world’s No.1 recorded music company, selling more than one out of every four albums worldwide, also holds a leading position in the digital music market.

Canal+ Group > France’s No.1 for premium and thematic channels and distribution of Pay TV; a major player in the financing, acquisition, and distribution of feature films in France and in Europe.

SFR > France’s No.2 mobile telecommunications operator. SFR owns 40.5% of Neuf Cegetel, France’s second-ranking fixed-line telecommunications operator.

Maroc Telecom > No.1 fixed-line and mobile telecommunications operator and Internet service provider in Morocco.

Vivendi Games > Global developer, publisher, and distributor of multiplatform interactive entertainment. No.1 worldwide for subscription massively multi-player online role-playing games.

Vivendi owns 20% of NBC Universal, a world leader in media with activities in film and television production, television channel distribution and theme-park operations.

www.vivendi.com RDDAN-2006-2007 Percentages refer to Vivendi’s stake in each company as of April 30, 2007. The Canal+ Group owns 65% of Canal+ France as of January 4, 2007.