Financial Report for the Year 2018
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FINANCIAL REPORT FOR THE YEAR 2018 Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2018 February 14, 2019 VIVENDI Société anonyme with a Management Board and a Supervisory Board with a share capital of €7,184,288,078.00 Head Office: 42 avenue de Friedland – 75380 PARIS CEDEX 08 – FRANCE IMPORTANT NOTICE: READERS ARE STRONGLY ADVISED TO READ THE IMPORTANT DISCLAIMERS AT THE END OF THIS FINANCIAL REPORT. Thursday February 14, 2019 KEY CONSOLIDATED FINANCIAL DATA FOR THE LAST FIVE YEARS ............................................................................................................. 4 I- 2018 FINANCIAL REPORT ...................................................................................................................................................................................... 6 1 EARNINGS ANALYSIS: GROUP AND BUSINESS SEGMENTS ............................................................................................................................... 6 1.1 CONSOLIDATED STATEMENT OF EARNINGS ........................................................................................................................................................... 7 1.2 ANALYSIS OF THE CONSOLIDATED STATEMENT OF EARNINGS ................................................................................................................................. 8 1.3 ANALYSIS OF REVENUES AND OPERATING RESULTS BY BUSINESS SEGMENT ............................................................................................................ 12 2 LIQUIDITY AND CAPITAL RESOURCES ............................................................................................................................................................. 20 2.1 LIQUIDITY AND EQUITY PORTFOLIO ...................................................................................................................................................................... 20 2.2 CASH FLOW FROM OPERATIONS ANALYSIS .......................................................................................................................................................... 22 2.3 ANALYSIS OF INVESTING AND FINANCING ACTIVITIES ........................................................................................................................................... 24 3 OUTLOOK ....................................................................................................................................................................................................... 25 4 FORWARD-LOOKING STATEMENTS ............................................................................................................................................................... 25 5 OTHER DISCLAIMERS..................................................................................................................................................................................... 25 II- APPENDIX TO THE FINANCIAL REPORT ......................................................................................................................................................... 26 QUARTERLY REVENUES BY BUSINESS SEGMENT ............................................................................................................................................................... 26 III- AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 ............................................. 28 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................... 28 CONSOLIDATED STATEMENT OF EARNINGS .................................................................................................................................................... 33 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ...................................................................................................................... 34 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................................................................ 35 CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................................................... 36 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .............................................................................................................................. 37 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................................................................................... 39 NOTE 1 ACCOUNTING POLICIES AND VALUATION METHODS ................................................................................................................................... 39 NOTE 2 MAJOR EVENTS .................................................................................................................................................................................... 58 NOTE 3 SEGMENT DATA .................................................................................................................................................................................... 60 NOTE 4 EBIT .................................................................................................................................................................................................... 64 NOTE 5 FINANCIAL CHARGES AND INCOME .......................................................................................................................................................... 64 NOTE 6 INCOME TAXES ..................................................................................................................................................................................... 65 NOTE 7 EARNINGS PER SHARE ............................................................................................................................................................................ 71 NOTE 8 CHARGES AND INCOME DIRECTLY RECOGNIZED IN EQUITY .......................................................................................................................... 72 NOTE 9 GOODWILL............................................................................................................................................................................................ 73 NOTE 10 CONTENT ASSETS AND COMMITMENTS ................................................................................................................................................... 77 NOTE 11 INVESTMENTS IN EQUITY AFFILIATES ........................................................................................................................................................ 79 NOTE 12 FINANCIAL ASSETS ................................................................................................................................................................................ 82 NOTE 13 NET WORKING CAPITAL .......................................................................................................................................................................... 84 NOTE 14 CASH POSITION ..................................................................................................................................................................................... 85 NOTE 15 EQUITY ................................................................................................................................................................................................. 86 NOTE 16 PROVISIONS .......................................................................................................................................................................................... 87 NOTE 17 EMPLOYEE BENEFITS .............................................................................................................................................................................. 88 NOTE 18 SHARE-BASED COMPENSATION PLANS .................................................................................................................................................... 93 NOTE 19 BORROWINGS AND OTHER FINANCIAL LIABILITIES AND FINANCIAL RISK MANAGEMENT ................................................................................. 97 NOTE 20 CONSOLIDATED CASH FLOW STATEMENT .............................................................................................................................................. 102 NOTE 21 RELATED PARTIES ................................................................................................................................................................................ 103 NOTE 22 CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS........................................................................................................................ 108 NOTE 23 LITIGATION ......................................................................................................................................................................................... 113 NOTE 24 MAJOR CONSOLIDATED ENTITIES OR ENTITIES ACCOUNTED FOR UNDER THE EQUITY METHOD ....................................................................... 120 NOTE 25 STATUTORY AUDITORS FEES ................................................................................................................................................................