Combined General Meeting of Shareholders Paris, Tuesday 25 April 2017 A CLEAR AND AMBITIOUS STRATEGY
Vincent Bolloré Chairman of the Supervisory Board PRESENTATION OF 2016 FINANCIALS
Hervé Philippe Chief Financial Officer 2016 KEY RESULTS
In euro millions 2016 % change % underlying change*
Revenues 10 819 + 0.5 % - 0.2 %
EBITA 724 - 23.2 % - 21.5 %
EBIT 1 194 - 2.9 %
Net income from operations** 1 236 + 77.0 %
Net cash position 1 068 vs. 6 422 end of 2015
*At constant perimeter and constant currency **Group share
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 4 April 2017 REVENUES
In euro millions 2015 2016 Change Constant currency
Universal Music Group 5 108 5 267 + 3.1 % + 4.4 %
Canal+ Group 5 513 5 253 - 4.7 % - 4.2 %
Gameloft - 132 na na
Vivendi Village 100 111 + 10.9 % + 3.8 %
New initiatives 43 103 x 2.4 + 51.6 %
Intercompany Elimination (2) (47)
TOTAL VIVENDI 10 672 10 819 + 0.5 % - 0.2 %
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 5 April 2017 CONSOLIDATED PROFIT AND LOSS (IFRS)
En millions d’euros - IFRS 2015 2016 %
Revenues 10 762 10 819 + 0.5 %
Income from operations 1 061 853 - 19.6 %
EBITA 942 724 - 23.2%
Amortization and depreciation on intangible assets acquired through business (411) (246) combinations
Other income & charges 700 716
EBIT 1 231 1 194 - 2.9 %
Income from equity affiliates (10) 169
Interest (30) (40)
Income from investments 52 47
Other financial income and charges (57) (38)
Provision for income taxes (441) (77)
Earnings from continuing operations 745 1 255 - 68.4 %
Earnings from discontinued operations 1 233 20
Non-controlling interests (46) (19)
Earnings attributable to Vivendi SA shareowners 1 932 1 256 - 35.0 %
of which earnings from continuing operations attributable to Vivendi SA 699 1 236 + 77.0 % shareowners
Adjusted net income 697 755 + 8.4 %
COMBINEDCOMBINED GENREAL GENERAL MEETING MEETING OF OF SHAREHOLDERS SHAREHOLDERS– -PARIS, Paris, mardiTuesday 25 avril25 6 April2017 2017 6 CONSOLIDATED BALANCE SHEET
December 31, December 31, December 31, December 31, Assets Equity and Liabilities 2015 2016 2015 2016
Goodwill 10 177 10 987 Consolidated equity (*) 21 086 19 612
Intangible and tangible assets 4 335 4 204 Provisions 3 042 2 141
Working capital requirements and Financial investments 7 543 8 341 4 266 2 873 other
Net deferred tax assets - 26 Net deferred tax liabilities 83 -
Net cash position 6 422 1 068
TOTAL 28 477 24 626 TOTAL 28 477 24 626
* Including non-controlling interests
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 7 April 2017 7 NET CASH AT YEAR-END 2016
In euro billions Including Including Including • Interest paid: -40M€ • 5.7% of Activision • Telecom Italia: -0,6Md€ • Taxes paid: -271M€ Blizzard: 1,5 Md€* • Mediaset: -1,3Md€ • Liberty Media: 0,3Md€ • Ubisoft -0,4Md€ • Gameloft: -0,5Md€ • Banijay Group: -0,3Md€ • Fnac: -0,2Md€
+1,8
6,4 -2,6 +0,7
-0,2 -1,6
-3,4 1,1
Net Cash, Distribution to Share buyback CFFO Interest, taxes paid Disposals and Acquisitions and Net cash Decembre 31, 2015 shareholders and other decreases in investments December 31, 2016 financial assets
*Including €0.5 billion relating to the unwinding of the hedges on the Activision Blizzard shares..
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 8 April 2017 8 UMG: RETURN TO GROWTH & CONTINUOUS PROFITABILITY
Revenue* Significant increase of the streaming and subscription revenue (in euro million) (in euro million)
* Constant perimeter and constant currency
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 9 April 2017 CANAL+ GROUP: TRANSFORMATION IN FRANCE & CONTINUOUS GROWTH ABROAD
Individual subscribers base Revenue splitper activity Strong growth in Africa (in euro million) (in euro million) (in euro million)
ASSEMBLÉE GÉNÉRALE MIXTE – PARIS, mardi 25 avril 2017 10 GAMELOFT: SUCCESSFUL INTEGRATION
Chiffre d’AffairesRevenue (millions d’euros) PartAdvertising du Chiffre d’Affaires revenue publicitaire share EBITA EBITA(millions d’euros) (in euro million)
+6%*
132 8% 129 3% 7
H2 2015 H2 2016 H2 2015 H2 2016 -3
H2 2015 H2 2016
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 11 April 2017 11 VIVENDI VILLAGE AND NEW INITIATIVES
% * Constant perimeter In euro millions 2015 2016 and constant currency
VIVENDI VILLAGE
Revenues 100 111 + 3.8 %
EBITA 9 - 9 na
NEW INITIATIVES
Revenues 43 103 + 51.6 %
EBITA -20 - 56 na
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 12 April 2017 12 STATUTORY FINANCIAL STATEMENTS VIVENDI SA BALANCE SHEET 2016
ASSETS (In euro millions) December 31, 2016 EQUITY AND LIABILITIES (in euro millions) December 31, 2016
Long term investments 20 192 Share capital 7 079
Additional paid-in-capital 9 052
Reserves 753
Retained earnings 361
Earnings of the year 1 610
Equity 18 855
Receivables 2 699 Provisions 809
Bond 3 576
Bank borrowings 218
Cash and marketable securities 4 143 Other borrowings (1) 3 535
Other liabilities 64
Liabilities 7 393
Other 50 Other 27
TOTAL 27 084 TOTAL 27 084
(1) Current accounts deposits made by subsidiaries
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 14 April 2017 14 STATEMENT OF EARNINGS
In euro millions 2015 2016
Operating income 47 66
Operating expenses - 173 - 176
Loss from operations - 126 - 110
Financial income 776 977
Financial provisions - 56 - 260
Other financial results 16 145
Financial income 736 862
Exceptional income from capital transactions and related to long-term investments 2 457 991
Exceptional income from non-capital transactions and other provisions - 28 - 189
Exceptional income 2 429 802
Income tax (charge)/credit - 212 56
Earnings of the year 2 827 1 610
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 15 April 2017 15 ALLOCATION OF EARNINGS ALLOCATION OF 2016 EARNINGS
Proposal to Annual General Shareholders’ Meeting of an ordinary dividend of €0.40 in respect of fiscal year 2016
Distributable earnings
Retained earnings 361 356 325,32
2016 earnings 1 609 534 857,01
TOTAL 1 970 891 182,33
Allocation
Legal Reserve -
Other Reserves -
Total Dividend* 503 789 590,80
Retained Earnings 1 467 101 591,53
TOTAL 1 970 891 182,33
* At a rate of € .40 per share. Amount based on the number of shares outstanding as of April 21, 2017; the latter amount will be adjusted to reflect the actual number shares entitled to the dividend on the ex- dividend date.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 17 April 2017 17 WORK DONE BY THE AUDIT COMMITTEE
Cathia Lawson-Hall Chairman of the Audit Committee A REVAMPED AUDIT COMMITTEE
4 meetings per year, attended by the statutory auditors 6 members including 4 independent members: Periodic meetings organised by the Chairman of the Committee Cathia Lawson-Hall Pascal Cagni Yannick Bolloré Alexandre de Juniac Development of an annual Nathalie Bricault Katie Stanton work plan
ASSEMBLÉE GÉNÉRALE MIXTE – PARIS, mardi 25 avril 2017 19 A BUSY YEAR
Successful integration of Gameloft in terms of reporting and internal control
Competitive bidding procedure for the replacement of our Statutory Auditors
Creation of a Risk Management Committee
Monitoring of the indebtedness and cash position
Involvement of the Audit Committee in CSR issues
COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 20 AprilApril 20172017 OUR TASKS FOR 2017
Establishment of a code of conduct (Sapin 2)
Monitoring of changes in the Group’s consolidation scope
Change of one of our two Statutory Auditors
Continue holding ad-hoc sessions dedicated to impairment, risks management, debt, retirement commitments
COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 21 AprilApril 20172017 CORPORATE GOVERNANCE, NOMINATIONS AND REMUNERATION COMMITTEE
Philippe Bénacin Vice-Chairman of Vivendi's Supervisory Board RemunerationCOMPENSATIONpolicy - ResolutionsPOLICY - 1111TH-13AND(1/ 613) TH RESOLUTIONS (1/6)
Vivendi's compensation policy: - is intended to align the compensation of corporate officers as closely as possible with the interests of shareholders, - applies the recommendations of the AFEP/MEDEF code, - is developed by the Corporate Governance, Nominations and Remuneration Committee. The policy is approved by the Supervisory Board.
The fixed compensation of the Chairman of the Management Board is in line with the average among CAC 40 companies, and his variable compensation ranks 32nd out of 40
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 23 April 2017 23 COMPENSATION POLICY - 11TH AND 13TH RESOLUTIONS (2/6)
The policy has two main components:
A fixed portion in line with CAC 40 standards, and a variable Demanding quantitative and qualitative objectives for determining portion, which for Management Board members is equal to a target variable compensation, including a CSR criterion directly related of 80% and up to a maximum of 100% of fixed compensation to the Group's efforts (versus 100/150% previously).
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 24 April 2017 24 TH TH RemunerationCOMPENSATION policy - ResolutionsPOLICY - 11 11-13AND (3/6) 13 RESOLUTIONS (3/6)
In 2016, the Supervisory Board, based on proposals made by the Corporate Governance, Nominations and Remuneration Committee, rebalanced the fixed and variable portions of the compensation granted to members of the Management Board and its Chairman, and the long-term portion represented by performance share grants.
Since 2016, the variable portion has been reduced to a target level of 80% and a maximum of 100% of fixed compensation, as opposed to 100-150% in 2015. The variable portion with respect to 2016, following the application of demanding, transparent, quantified and verifiable performance criteria that determine its payment, has been capped at 75%, lower than the target.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 25 April 2017 25 COCCOMPENSATION- Resolutions 11-13 POLICY (4/6) - 11TH AND 13TH RESOLUTIONS (4/6)
This rebalancing, which began in 2016 and continued in 2017 (supplemented by the reduction in the number of performance shares granted to each Management Board member) will take full effect in 2017.
The decision results, after the rebalancing in 2017, in a decrease in overall compensation.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 26 April 2017 26 CPolutionsCOMPENSATION 11-13 (5/6) POLICY - 11TH AND 13TH RESOLUTIONS (5/6)
The change in compensation (fixed + variable) of Management Board members in 2017 will be as follows, taking into account each member's level of responsibility:
Adding in the value of performances shares, the change for 2017 will be as follows:
Arnaud de PUYFONTAINE + 4 % - 9,2 %
Frédéric CREPIN + 11 % - 1,8 %
Simon GILLHAM + 14 % - 9,9 %
Hervé PHILIPPE + 4 % - 3,9 %
Stéphane ROUSSEL + 10 % - 0,1 %
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 27 April 2017 27 RemunerationCOMPENSATION policy - ResolutionsPOLICY - 11 11TH-13AND (6/6) 13TH RESOLUTIONS (6/6)
As regards Supervisory Board members:
Maximum annual amount of attendance fees: €1.5 million, unchanged since the Combined General Meeting of Shareholders of 24 April 2008,
Payment of attendance fees depends on actual attendance at Board and Committee meetings and the number of such meetings:
- Board members: basic annual fee of €60,000, depending on attendance, - Audit Committee members: basic annual fee of €40,000 (€55,000 for the Chairman), - Corporate Governance, Nominations and Remuneration Committee members: basic annual fee of €30,000 (€45,000 for the Chairman).
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 28 April 2017 28 COMPENSATION OF THE CHAIRMAN OF THE SUPERVISORY BOARD IN RESPECT OF 2016 – 5TH RESOLUTION
Fixed portion: €340,000 Fixed attendance fee: €60,000 Amount paid in respect of 2016: €400,000 Since 2016, this amount is no longer subject to performance criteria No other compensation or benefits Annual compensation for 2017: unchanged
This resolution is presented to you for the first time this year in accordance with the new paragraph 26-2 of the AFEP/MEDEF code, which is the corporate governance code to which your company refers.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 29 April 2017 29 COMPENSATION OF THE CHAIRMAN OF THE MANAGEMENT BOARD IN RESPECT OF 2016 – 6TH RESOLUTION
The components of his remuneration for 2016 on which you are being asked to issue an opinion, in accordance with the AFEP/MEDEF code, are:
- Fixed salary: €1,200,000 - Variable: limited to 75% of fixed salary, i.e. €900,000 - Performance shares: 95,000 due to vest in 2020, subject to the satisfaction of performance conditions assessed over three years - Supplementary pension plan for Vivendi executives: eligibility subject to performance criteria
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 30 April 2017 30 RemunerationCOMPENSATION of Management OF MANAGEMENT Board members BOARD in respect MEMBERS of 2016 – IN RESPECT OF 2016 – 7TH TO 10TH RESOLUTIONS Resolutions 7-10
Variable compensation for 2016 set at 75% of fixed salary, below the target level
Actions de Salaire fixe (en euros) Taux Bonus performance
Frédéric Crépin 750 000 75 % 560 000 50 000
Simon Gillham 625 000 75 % 470 000 50 000
Hervé Philippe 940 000 75 % 705 000 50 000
Stéphane Roussel 1 000 000 75 % 750 000 50 000
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 31 April 2017 31 PERFORMANCE SHARES
From the 2017 grant onwards, vesting of performance shares is subject to the following criteria:
Financial targets (70%): - Growth in operating income (Group EBIT) - 35% - Growth in Group cash flow after interest and tax (CFAIT) - 35%
Share price performance in line with index average (30%) (1): - Stoxx Europe Media (20%) - CAC 40 (10%)
(1) Dividends reinvested COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 32 April 2017 32 SERVICE CONTRACT WITH DOMINIQUE DELPORT, MEMBER OF THE SUPERVISORY BOARD – 3RD RESOLUTION
The contract was authorised by Vivendi's Supervisory Board during its 2 September 2015 meeting, for a term of five years starting on 1 October 2015, and was approved by the General Meeting of Shareholders on 21 April 2016.
Fees: €500,000 maximum (fixed: €300,000 + maximum variable: €200,000)
Fees paid in 2016: €300,000 in respect of the fixed portion, none in respect of the variable portion
A proposal will be made to the Supervisory Board to remove the variable portion starting from 2017
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 33 April 2017 33 EMPLOYEE SHARE OWNERSHIP – 23RD AND 24TH RESOLUTIONS
This year, Vivendi is carrying out a capital increase reserved for its employees, with a discount of 15%.
Employees held 3.27% of the capital at 31 December 2016.
The authorisation limit proposed to you this year remains 1% of the share capital.
All of the Group's main subsidiaries in France have entered into employee profit-sharing and/or incentive agreements benefiting all employees.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 34 April 2017 34 STATUTORY AUDITOR’S REPORT
Jacques Pierres EY La politiqueCOMBINED de rémunération GENERAL – 11 MEETINGème à 13ème OF résolution SHAREHOLDERS (1/6)
ORDINARY SHAREHOLDERS’ MEETING:
-Report on the annual parent company financial statements -Report on the consolidated financial statements -Special Report on related-party agreements and commitments -Report prepared in accordance with Article L.225-235 of the French Commercial Code on the Report of the Chairman of the Supervisory Board -Report on consolidated societal, social and environmental information -Report on the EBITA forecasts
EXTRAORDINARY SHAREHOLDERS’ MEETING:
-Special Reports on capital transactions
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 24 April 2017 24 La politique de rémunérationORDINARY SHAREHOLDERS’– 11ème à 13ème résolution MEETING (1/6 )
The report is based on two foundations:
1st Resolution: Annual Financial Statements of Vivendi S.A. 2nd Resolution: Consolidated Financial Statements of the
Pages 301-302 of the 2016 Document de Référence-Annual Report Vivendi Group Page 210 of the 2016 Document de Référence-Annual Report -We hereby certify that the annual financial statements have been prepared in accordance with the rules and principles of accounting -We hereby certify that the consolidated financial statements, generally accepted in France and that they present a true and fair under IFRS, as adopted in the European Union, are consistent view of the company's results, financial position and assets as at and sincere and give a true and fair view of the Group's assets, the end of the financial year. financial position and results.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 25 April 2017 25 La politique de rémunérationORDINARY SHAREHOLDERS’– 11ème à 13ème résolution MEETING (1/6 )
SPECIAL REPORT ON RELATED-PARTY TRANSACTIONS AND COMMITMENTS
3rd Resolution: Related-party agreements and commitments
Pages 339-340 of the 2016 Document de Référence-Annual Report
- We inform you that we have not been advised of any related-party agreement or commitment authorized during the past financial year to be submitted to the General Shareholders’ Meeting for approval pursuant to the provisions of Article L. 225-86 of the French Commercial Code.
- The other agreements and commitments authorized in prior years that continued in 2016 are also presented in our special report.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 26 April 2017 26 La politique de rémunérationORDINARY SHAREHOLDERS’– 11ème à 13ème résolution MEETING (1/6 )
REPORT PREPARED IN ACCORANCE WITH ARTICLE L. 225-235 OF THE FRENCH COMMERCIAL CODE ON THE REPORT OF THE CHAIRMAN OF THE SUPERVISORY BOARD Page 181 of the 2016 Document de Référence-Annual Report
-We have no comments on the information relating to the company's internal control and risk management procedures relating to the preparation and processing of accounting and financial information. -We confirm that the report also contains the other information required by Article L. 225-68 of the French Commercial Code.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 27 April 2017 27 La politique de rémunérationORDINARY SHAREHOLDERS’– 11ème à 13ème résolution MEETING (1/6 )
REPORT ON THE CONSOLIDATED SOCIETAL, SOCIAL AND ENVIRONMENTAL INFORMATION PRESENTED IN THE MANAGEMENT BOARD’S REPORT
Pages 104-105 of the 2016 Document de Référence-Annual Report
- We attest that the required CSR information is present, within the limits specified in the note on methodology. - We have not identified any significant misstatement that causes us to believe that the CSR information, taken as a whole, has not been fairly presented.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 28 April 2017 28 La politique de rémunérationORDINARY SHAREHOLDERS’– 11ème à 13ème résolution MEETING (1/6 )
REPORT ON THE EBITA FORECASTS
Pages 345 of the 2016 Document de Référence-Annual Report
- We would like to remind you that, given that forecasts are inherently uncertain in nature, actual results will sometimes differ significantly from the forecasts presented and we do not express any conclusions on the achievability of these forecasts.
- In our opinion : - The forecasts have been properly established on the basis indicated in Chapter 5, Section 2; and - The accounting methods used for in the preparation of these forecasts are consistent with the accounting principles adopted by Vivendi.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 29 April 2017 29 La politique deEXTRAORDINARY rémunération – 11 SHAREHOLDERS’ème à 13ème résolution MEETING (1/6)
SPECIAL REPORTS ON CAPITAL TRANSACTIONS
Delegations of Authority/Authorization to be given to the Management Board
20th Resolution - Share capital reduction through the cancellation of shares
21st Resolution - Share capital increase by issuance of ordinary shares or any securities giving rights to the share capital with preferential subscription rights
22nd Resolution - Share capital increase reserved for employees (including those of Vivendi’s foreign subsidiaries) and retirees that are members of the Group Savings Plan, without preferential subscription rights.
We have no matters to report on these transactions, which comply with the provisions of the French Commercial Code. We will prepare additional reports if and when these authorizations are used by the Management Board.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 30 April 2017 OUR STRONGHOLDS FOR GROWTH
Arnaud de Puyfontaine Chairman of Vivendi's Management Board BUILDING A GLOBAL CONTENT AND MEDIA GROUP
Two growth drivers: creation and distribution
Assets strengthened and combined so that they can collectively generate more value
A long-term business plan
COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 32 AprilApril 20172017 VIVENDI HAS LAID THE FOUNDATIONS TO REALISE ITS AMBITIONS
STAKE IN
STAKE IN
TRANSFORMATION PLAN FOR ACQUISITION OF 5-YEAR DEVELOPMENT PLAN
ACQUISITION OF
2017
2016 2015
COMBINEDCOMBINED GENERAL GENERAL MEETING MEETING OF SHAREHOLDERS OF SHAREHOLDERS – Paris, Tuesday - Paris, 25 33 TuesdayApril 25 2017 April 2017 THE GROUP'S MAIN BUSINESS LINES THE GROUP'S MAIN BUSINESS LINES THE GROUP'S MAIN BUSINESS LINES THE GROUP'S MAIN BUSINESS LINES THE GROUP'S MAIN BUSINESS LINES NEW INITIATIVES
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 39 April 2017 A EUROPEAN MEDIA GROUP WITH GLOBAL AMBITIONS
23% of total
Europe
40% of total
23% North America France Rest of of total the world
14% of total
Breakdown of revenue by geographical zone
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 40 April 2017 TWO GROWTH DRIVERS: CREATION AND DISTRIBUTION
MOBILE GAMES FREE-TO-AIR TV
MUSIC PUBLISHING 2% 2% 7%
PAY TV IN MAINLAND FRANCE 29%
Distribution 47%
Creation RECORDED MUSIC AND MERCHANDISING 41% 53%
13% INTERNATIONAL PAY TV
4% 2%
FILMS AND OTHER SERIES
Breakdown of revenue by business
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 41 April 2017
OUR THREE CREATIVE STRONGHOLDS The world leader in music
Partnerships with over 400 streaming platforms
Drake, Justin Bieber, Rihanna: the world's most-streamed artists in 2016
Growth opportunities in new territories
COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 43 AprilApril 20172017 A major audio-visual group undergoing transformation
A rich and diverse range of original productions
Implementation of the plan to create fresh impetus in France
Ongoing international growth
COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 44 AprilApril 20172017 A new leader in mobile gaming within the Vivendi universe
An acquisition consistent with Vivendi's strategy
Mobile games: a fast-growing industry
1 billion Gameloft games downloaded in 2016
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 45 April 2017 OUR DISTRIBUTION PARTNERS PARTNERSHIPS WITH TELECOMS OPERATORS TO DISTRIBUTE OUR CONTENT LOCALLY
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 47 April 2017 ITALY: SPEARHEADING OUR EXPANSION IN SOUTHERN EUROPE
COMBINED GENERAL MEETING OF SHAREHOLDERS – Paris, Tuesday 25 April 2017 48 PARTNERSHIPS WITH DIGITAL PLATFORMS TO DISTRIBUTE OUR CONTENT GLOBALLY
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 49 April 2017 A WORLD CLASS CHAMPION IN CONTENT AND MEDIA
A clear strategy
A foothold in Europe
Leading assets on specific markets
The resources to back our ambitions
One major shareholder
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 50 April 2017
A GROWING MUSIC MARKET
+11% +1,1% +5% +3% +5,5%
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 52 April 2017 STREAMING IS THE segment of the future
WORLD MARKET 2016 FRENCH MARKET 2016
STREAMING 32% +60% PHYSICAL SALES +38% Streaming 59% Streaming
DOWNLOADS 9%
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 53 April 2017 A VALUABLE CATALOGUE
FRENCH MARKET 2016
New releases
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 54 April 2017 UNIVERSAL MUSIC – A LEADING PLAYER IN THE MOST POPULAR GENRES, IN BOTH PHYSICAL AND DIGITAL FORMATS
FRENCH MARKET 2016 PHYSICAL STREAMING
40% French pop 40% Urban
Urban 15% 20% French pop
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 55 April 2017 UNIVERSAL MUSIC – LEADING PLAYER IN FRENCH POP AND SET TO DOMINATE THE PHYSICAL MARKET AGAIN IN 2017
Calogero Carla Bruni Louane
Kendji Girac Slimane
Etienne Daho Marina Kaye
Michel Sardou Christophe
Eddy Mitchell Marc Lavoine
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 56 April 2017 Florent Pagny Nolwenn Leroy Bernard Lavilliers Amel Bent Benjamin Biolay UNIVERSAL MUSIC – leading player in urban music and set to dominate the streaming market again in 2017
MHD Sofiane Alonzo Chilla Lacrim
SCH
Damso Nekfeu Kaaris
Bigflo & Oli
I AM
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 57 April 2017
Fanny Neguesha UNIVERSAL MUSIC – LEADING PLAYER IN INTERNATIONAL POP AND CLASSIC JAZZ AND SET TO DOMINATE THE PHYSICAL AND DIGITAL MARKETS AGAIN IN 2017
Gregory Porter Katy Perry Sam Smith The Weeknd Black Eyed Peas Taylor Swift Selena Gomez
Eminem U2 Kendric Lamar James Bay
Lang Lang
Diana Krall Paul Mc Cartney Lana Del Rey Drake Lorde Maroon 5 Jamiroquai
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 58 April 2017 UNIVERSAL MUSIC TEAMS AT THE FOREFRONT OF DIGITAL STRATEGY
Playlist Social networks Influencers Databases s Artists On line Consumers Streaming
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 59 April 2017 A GROUP THAT SUPPORTS TALENT
Data / CRM
Association avec les Marques
Production Audiovisuelle
Publishing Merchandising TALENTS
Back Catalogue Développement International
Live & Évènements Stratégie Digitale COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 60 April 2017 UNIVERSAL MUSIC – A LEADING PLAYER IN DEVELOPING NEW TALENT
LEJ Ibrahim Maalouf Gauvain Sers
Jen Jis
Arcadian Her
Lorenzo
Chilla Adam Naas
Tess Claire Laffut Kungs Tilka MHD Bigflo & Oli
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 61 April 2017 Deen Burbigo Eugénie Juliette Armanet Dany Synthé Møme Maxime Saada Frank Cadoret CEO Canal+ Group, Head of Distribution, Canal+ Président de Dailymotion CANAL+ GROUP: A RECOVERY TREND
2016 REVENUE DIRECT SUBSCRIBERS 2012-2016
million 2014 2016 7 1 FRANCE PAY TV FRANCE 3 454 3 178 Turnaround in the
PAY TV INT’L 1 273 1 442 mainland France business
5 STUDIOCANAL 533 416 2
FREE TV FRANCE 196 217 INTERNATIONAL International growth via distribution and content TOTAL GROUPE 5 456 5 253 3 2012 201 201 2015 2016 3 4
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 64 April 2017 CANAL+ GROUP: INTERNATIONAL CONTENT
FILMS FRAIS SÉRIES CATALOGUE
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 65 April 2017 CANAL+ GROUP: INTERNATIONAL DISTRIBUTION
POLOGNE
2,1M subscribers
OVERSEAS 492M€ TERRITORIES revenue VIETNAM 500K subscribers K AFRIQUE 855 subscribers 411M€ revenue 2,8M subscribers 49M€ revenue 450M€ revenue
Source: 2016 data
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 66 April 2017 CANAL+ GROUP: TURNAROUND IN FRANCE
COST OPTIMIZATION PLAN
300M€ by 2018 110M€ in 2016
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 67 April 2017 CANAL+ GROUP: TURNAROUND IN FRANCE
2.a TELCOS PARTNERSHIPS 2.b FOCUS ON SUBSCRIBERS 2.c OVERHAUL OF PACKAGES
1 Selection of the main offer +2.9M SUBSCRIBERS The new catch-up (December 31, 2016) service 19,90€ 29,90€ The return of par mois pendant 2 ans par mois pendant 2 ans the magazine 2 Additional themed packages
Premium +30€ +20€ +15€ par mois par mois par mois service customer ou All offers
L'INTÉGRALE 99,90€ par mois pendant 2 ans
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 68 April 2017 CANAL+ GROUP: TURNAROUND IN FRANCE
OVERHAUL OF PACKAGES: new audiences targeted, 24 months subscription and unparalleled choice of content
1 Selection of the main offer Exemple Pack Sport
19,90€ 29,90€ 17 chaînes de sport 100% des plus grandes compétitions par mois pendant 2 ans par mois pendant 2 ans
2 Additional themed packages
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COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 69 April 2017 CANAL+ GROUP: TURNAROUND IN FRANCE
OVERHAUL OF PACKAGES: greater choice in terms of commitment and platform
100% digital, no-contract packages OTT roll-out for MyCanal
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 71 April 2017 CANAL+ GROUP: TURNAROUND IN FRANCE
3. PREMIUMIZATION OF FREE-TV
Coherent galaxy of complementary pay and free channels Re-branding of channels: C8, CSTAR , CNEWS Transfert of certain Canal+ talents to C8
Investments in programq: sports rights, cinema, new formats
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 72 April 2017 DAILYMOTION : REPOSITIONNING
NEW POSITIONING NEW EXPERIENCE JUIN 2017
Target 25-49 Worldwide launch Premium content Recognized media brands Application Web mobile 4 verticals Desktop Unforgettable content New content 300M Unique Live and stock visitors
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 73 April 2017 Stéphane Roussel Chairman and Chief Executive Officer COO of Vivendi MOBILE VITAL TO TOMORROW'S CONTENT
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 75 April 2017 MOBILE GAMES: A FAST-CHANGING INDUSTRY
YESTERDAY TODAY TOMORROW
A niche industry that was born in An industry worth $37bn An industry likely to be worth the early 2000s in 2016 $53bn in 2019
Paid, premium business model Free-to-play business model Hybrid business model free-to-play + advertising
Development of programmatic Advertising-free model Gradual inclusion of advertising advertising and sponsorship
COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 76 AprilApril 20172017 STUDIOS
PLATFORMS TELECOMS OPERATORS
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 77 April 2017 2016 KEY FIGURES
1 bn 17 m 39 mins 200 Gameloft0 games players00 every spent0 playing0 a game distribution03 agreements3 downloaded in 2016 day worldwide on average with telecoms World2 no.1 35 35 operators951 COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 78 4 59 AprilApril 20172017 59 816
21 STUDIOS WORLDWIDE
BUDAPEST
MINSK
BEIJING
PARIS BUCHAREST
KHARKOV MEXICALI DANANG MONTREAL HANOI TORONTO LVIV MANILA
NEW ORLEANS SOFIA MADRID HO CHI MINH CITY CLUJ BRISBANE
BARCELONA YOGYAKARTA
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 79 April 2017 SUCCESSFUL GAMES AND FRANCHISES
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 80 April 2017 Alexandre Pelletier-Normand Senior Vice-President Production GAMELOFT'S SUCCESSFUL INTEGRATION WITHIN VIVENDI GAMELOFT'S SUCCESSFUL INTEGRATION WITHIN VIVENDI
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 83 April 2017 INTERNAL INNOVATION COMPETITION
13 studios taking part in the first call for concepts
90 projects submitted, of which around 20 included a prototype
Varying genres: reimagined classics, role-play, shoot-em-ups, music, cards and unclassifiables
100% mobile: no virtual reality, console or PC
Employee vote for concepts showing the greatest potential
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 84 April 2017 INITIAL SYNERGIES
Distribution of Digster in Latin America Integration of the Asphalt game in the Release of a game to accompany and Asia (excluding Japan and China) Studio+'s Paris 2024, which Vivendi is partnering for UMG “Dragon Race” series, released in the first half of 2017
COMBINED GENERAL MEETING OF SHAREHOLDERS -– Paris, Paris, TuesdayTuesday 25 85 AprilApril 20172017 Stéphane Roussel Chairman and Chief Executive Officer COO of Vivendi TALENT, LIVE EVENTS AND PRODUCTION
Simon Gillham Chairman of Vivendi Village OUR VALUE CHAIN
PRODUCTION AUDIOVISUAL LIVE PRODUCTION TICKETING MERCHANDISING
TALENT
BRANDS SALES MEDIA DIGITAL & DATA
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 88 April 2017 VIVENDI: DISCOVERING TALENT
Etienne de Balasy Julie Bargeton Sarah Constantin Claire Daio Arthur Dreyfus Paul Taylor Le Petit Journal Les Guignols L’Émission Le Cercle Le Cercle Format court d’Antoine diffusé le samedi avant le Tube
Paloma Coquant Lucie Akoun Thomas Bohbot Iban Rais Jessie Picard Nesrine Slaoui Guillermo Guiz Lancement CANAL+ Cinéma C8 C8 CSTAR CNEWS Olympia Prod case Cinéma
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 89 April 2017 OLYMPIA PRODUCTION, A VERSATILE PLAYER
10 Artists 2 Festivals 1 Theater Play 1 Musical Comedy +600 shows scheduled for 2017
COMBINEDASSEMBLÉE GENERAL GÉNÉRALE MEETING MIXTEOF SHAREHOLDERS – PARIS, mardi -25 Paris, avril 2017Tuesday 25 90 April 2017 MAJOR INVESTMENTS IN FESTIVALS
Acquisition et co-productions New development opportunities
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 92 April 2017 CANALOLYMPIA: THE FIRST PAN-AFRICAN NETWORK OF ENTERTAINMENT VENUES
Innovative and ultra-modern movie theaters
Flexible and versatile spaces
A springboard and incubator for African talent
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 93 April 2017 THE FIRST CANALOLYMPIA VENUES
14 JUIN 2016 Yaoundé – CAMEROUN 24 FÉVRIER 2017 CanalOlympia Yaoundé 1 Ouagadougou – BURKINA FASO CanalOlympia Yennenga 10 JANVIER 2017 17 JANVIER 2017 Conakry – GUINÉE Douala – CAMEROUN CanalOlympia Kaloum CanalOlympia Bessengué
31 JANVIER 2017 Niamey – NIGER CanalOlympia Hippodrome
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 95 April 2017 FUTURE ROLL-OUT OF CANALOLYMPIA ENTERTAINMENT VENUES
DAKAR NIAMEY (mid-May 2017)
CONAKRY OUAGADOUGOU
LOMÉ COTONOU
DOUALA YAOUNDÉ KINSHASA
POINTE NOIRE
Locations already opened BRAZZAVILLE Future locations
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 96 April 2017 A RICH AND DIVERSE PROGRAMMING
18 screenings a week on the basis of the Studiocanal agreements
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 97 April 2017 REGULATORY AND SOCIAL ISSUES
Frédéric Crépin General Counsel, Vivendi A changing regulatory framework… … ALLOWING FOR THE EMERGENCE OF A MAJOR EUROPEAN MEDIA GROUP
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 100 April 2017 …AND REDUCING THE « VALUE GAP » IN MUSIC
AUDIO AND UUC VIDEO STREAMING USERS vs REVENUES
US $3,904 M Users (millions) Revenue (US$ millions)
900 M d’utilisateurs 212 M US $553 M d’utilisateurs
Subscription audioSubscription streams audio (paid streamsand ad-supported) UCCUUC video streamsstreams (paid and ad-supported)
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 101 April 2017 VIVENDI: COMMITTED TO CULTURE
Cultural diversity driving value creation
17% of UMG's marketing and recording expenditure focused on new talent (in its five main countries) 59% of UMG's sales generated by local catalogues in their own countries (59 countries)
€135m: Studiocanal's expenditure on European works
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 102 April 2017 VIVENDI: A RESPONSIBLE GROUP
Vigilance programme updated to adjust to new regulations
Protecting customers' personal data: reinforced systems within the Group
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 103 April 2017 VIVENDI: A RESPONSIBLE GROUP
Protection of young audiences:
Vivendi: member of the European initiative "Alliance to better protect minors online" UMG: ongoing dialogue with partners about introducing an age-based classification system for videos online. Canal+ group: 5 “Internet et nous” documentaries (Planète +) that explore the risks and opportunities relating to internet use
COMBINEDCOMBINED GENERAL GENERAL MEETING MEETING OF SHAREHOLDERS OF SHAREHOLDERS – Paris, Tuesday - Paris, 25 104104 TuesdayApril 25 2017 April 2017 A VALUE-CREATING CSR POLICY
Gaining the trust of artists, talent and partners A responsible Fostering audience loyalty Commitment to Creating a positive image for prospective customers group Generating pride in the workforce culture Increasing understanding of the ecosystem
Economic performance
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 105 April 2017 CONSTANT DIALOGUE WITH INDIVIDUAL SHAREHOLDERS
Events organised across France for the Shareholders Club
A new-look Shareholder Committee
Website: a dedicated area for individual shareholders
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 106 April 2017 CONSTANT DIALOGUE WITH INDIVIDUAL SHAREHOLDERS
Shareholder newsletters
Toll-free number in France: 0850 050 050 Twitter account@vivendi
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 107 April 2017 IMPORTANT LEGAL DISCLAIMER / CONTACTS
Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements with respect to Vivendi's financial condition, results of operations, business, strategy, plans, and outlook of Vivendi, including the impact of certain transactions and the payment of dividends and distributions as well as share repurchases. Although Vivendi believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Vivendi’s control, including, but not limited to, the risks related to antitrust and other regulatory approvals as well as any other approvals which may be required in connection with certain transactions and the risks described in the documents of the group filed by Vivendi with the Autorité des Marchés Financiers (French securities regulator) and its press releases, if any, which are also available in English on Vivendi's website (www.vivendi.com). Investors and security holders may obtain a free copy of documents filed by Vivendi with the Autorité des Marchés Financiers at www.amf-france.org, or directly from Vivendi. Accordingly, readers of this presentation are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this presentation. Vivendi disclaims any intention or obligation to provide, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Unsponsored ADRs Vivendi does not sponsor an American Depositary Receipt (ADR) facility in respect of its shares. Any ADR facility currently in existence is “unsponsored” and has no ties whatsoever to Vivendi. Vivendi disclaims any liability in respect of any such facility.
COMBINED GENERAL MEETING OF SHAREHOLDERS - Paris, Tuesday 25 108 April 2017