Financial Report and Audited Consolidated Financial Statements for the Year Ended December 31, 2013
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Financial Report and Audited Consolidated Financial Statements for the Year Ended December 31, 2013 February 25, 2014 Tuesday, February 25, 2014 Consolidated Statement of Earnings Year ended December 31, Note 2013 2012 (a) Revenues 4 22,135 22,577 Cost of revenues 4 (12,988) (12,672) Selling, general and administrative expenses (6,905) (6,905) Restructuring charges and other operating charges and income (271) (273) Impairment losses on intangible assets acquired through business combinations 4 (2,437) (760) Reserve accrual related to the Liberty Media Corporation litigation in the United States 28 - (945) Other income 4 88 19 Other charges 4 (57) (236) Earnings before interest and income taxes (EBIT) 3 (435) 805 Income from equity affiliates 15 (33) (38) Interest 5 (528) (544) Income from investments 67 7 Other financial income 5 51 37 Other financial charges 5 (561) (204) Earnings from continuing operations before provision for income taxes (1,439) 63 Provision for income taxes 6.2 (417) (604) Earnings from continuing operations (1,856) (541) Earnings from discontinued operations 7 4,635 1,505 Earnings 2,779 964 Of which Earnings attributable to Vivendi SA shareowners 1,967 179 of which earnings from continuing operations attributable to Vivendi SA shareowners (1,964) (654) earnings from discontinued operations attributable to Vivendi SA shareowners 3,931 833 Non-controlling interests 812 785 of which earnings from continuing operations 108 113 earnings from discontinued operations 704 672 Earnings from continuing operations attributable to Vivendi SA shareowners per share - basic 8 (1.47) (0.50) Earnings from continuing operations attributable to Vivendi SA shareowners per share - diluted 8 (1.47) (0.50) Earnings from discontinued operations attributable to Vivendi SA shareowners per share - basic 8 2.95 0.64 Earnings from discontinued operations attributable to Vivendi SA shareowners per share - diluted 8 2.94 0.64 Earnings attributable to Vivendi SA shareowners per share - basic 8 1.48 0.14 Earnings attributable to Vivendi SA shareowners per share - diluted 8 1.47 0.14 In millions of euros, except per share amounts, in euros. a. As from the second quarter of 2013, in compliance with IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), Activision Blizzard and Maroc Telecom group have been reported in the Consolidated Statement of Earnings with respect to fiscal years 2013 and 2012 as discontinued operations (please refer to Note 7). On October 11, 2013, Vivendi deconsolidated Activision Blizzard pursuant to the sale of 88% of its interest. In addition, data published with respect to fiscal year 2012 was adjusted following the impacts related to the application of amended IAS 19 (Employee Benefits), whose application is mandatory in the European Union as of January 1, 2013 (please refer to Note 1). These adjustments are presented in Note 33. The accompanying notes are an integral part of the Consolidated Financial Statements. Financial Report and Audited Consolidated Financial Statements for the Year Ended December 31, 2013 Vivendi /40 Tuesday, February 25, 2014 Consolidated Statement of Comprehensive Income Year ended December 31, (in millions of euros) Note 2013 2012 (a) Earnings 2,779 964 Actuarial gains/(losses) related to employee defined benefit plans, net (23) (61) Items not reclassified to profit or loss (23) (61) Foreign currency translation adjustments (1,429) (605) Unrealized gains/(losses), net 58 103 Other impacts, net 15 - Items to be subsequently reclassified to profit or loss (1,356) (502) Charges and income directly recognized in equity 9 (1,379) (563) Total comprehensive income 1,400 401 of which Total comprehensive income attributable to Vivendi SA shareowners 789 (362) Total comprehensive income attributable to non-controlling interests 611 763 a. As of January 1, 2013, Vivendi applied, with retrospective effect as from January 1, 2012, amended IAS 19 (Employee Benefits) and IAS 1 (Presentation of Financial Statements: Presentation of Items of Other Comprehensive Income), each of whose application is mandatory in the European Union beginning on or after January 1, 2013 (please refer to Note 1). As a result, the 2012 Financial Statements were adjusted in accordance with the new standards (please refer to Note 33). The accompanying notes are an integral part of the Consolidated Financial Statements. Financial Report and Audited Consolidated Financial Statements for the Year Ended December 31, 2013 Vivendi /41 Tuesday, February 25, 2014 Consolidated Statement of Financial Position (in millions of euros) Note December 31, 2012 January 1st, 2012 December 31, 2013 (a) (a) ASSETS Goodwill 10 17,147 24,656 25,029 Non-current content assets 11 2,623 3,327 2,485 Other intangible assets 12 4,306 5,190 4,329 Property, plant and equipment 13 7,541 9,926 9,001 Investments in equity affiliates 15 446 388 135 Non-current financial assets 16 654 488 379 Deferred tax assets 6 733 1,445 1,447 Non-current assets 33,450 45,420 42,805 Inventories 17 330 738 805 Current tax receivables 6 627 819 542 Current content assets 11 1,149 1,044 1,066 Trade accounts receivable and other 17 4,898 6,587 6,730 Current financial assets 16 45 364 478 Cash and cash equivalents 18 1,041 3,894 3,304 8,090 13,446 12,925 Assets held for sale 2, 7 1,078 667 - Assets of discontinued businesses 7 6,562 - - Current assets 15,730 14,113 12,925 TOTAL ASSETS 49,180 59,533 55,730 EQUITY AND LIABILITIES Share capital 7,368 7,282 6,860 Additional paid-in capital 8,381 8,271 8,225 Treasury shares (1) (25) (28) Retained earnings and other 1,709 2,797 4,295 Vivendi SA shareowners' equity 17,457 18,325 19,352 Non-controlling interests 1,573 2,966 2,619 Total equity 19 19,030 21,291 21,971 Non-current provisions 20 2,904 3,258 1,679 Long-term borrowings and other financial liabilities 23 8,737 12,667 12,409 Deferred tax liabilities 6 680 991 728 Other non-current liabilities 17 757 1,002 864 Non-current liabilities 13,078 17,918 15,680 Current provisions 20 619 711 586 Short-term borrowings and other financial liabilities 23 3,529 5,090 3,301 Trade accounts payable and other 17 10,416 14,196 13,987 Current tax payables 6 79 321 205 14,643 20,318 18,079 Liabilities associated with assets held for sale 2, 7 - 6 - Liabilities associated with assets of discontinued businesses 7 2,429 - - Current liabilities 17,072 20,324 18,079 Total liabilities 30,150 38,242 33,759 TOTAL EQUITY AND LIABILITIES 49,180 59,533 55,730 a. As of January 1, 2013, Vivendi applied, with retrospective effect as from January 1, 2012, amended IAS 19 (Employee Benefits), whose application is mandatory in the European Union beginning on or after January 1, 2013 (please refer to Note 1). As a result, the 2012 Financial Statements were adjusted in accordance with the new standard (please refer to Note 33). The accompanying notes are an integral part of the Consolidated Financial Statements. Financial Report and Audited Consolidated Financial Statements for the Year Ended December 31, 2013 Vivendi /42 Tuesday, February 25, 2014 Consolidated Statement of Cash Flows Year ended December 31, (in millions of euros) Note 2013 2012 (a) Operating activities EBIT 3 (435) 805 Adjustments 25 4,911 4,456 Content investments, net (148) (145) Gross cash provided by operating activities before income tax paid 4,328 5,116 Other changes in net working capital 17 (308) 69 Net cash provided by operating activities before income tax paid 4,020 5,185 Income tax paid, net 6.3 (197) (353) Net cash provided by operating activities of continuing operations 3,823 4,832 Net cash provided by operating activities of discontinued operations 7 1,417 2,274 Net cash provided by operating activities 5,240 7,106 Investing activities Capital expenditures 3 (2,674) (3,999) Purchases of consolidated companies, after acquired cash 2 (43) (1,374) Investments in equity affiliates 15 (2) (322) Increase in financial assets 16 (106) (35) Investments (2,825) (5,730) Proceeds from sales of property, plant, equipment and intangible assets 3 50 23 Proceeds from sales of consolidated companies, after divested cash 7 2,748 13 Disposal of equity affiliates 15 8 11 Decrease in financial assets 16 727 180 Divestitures 3,533 227 Dividends received from equity affiliates 3 3 Dividends received from unconsolidated companies 54 1 Net cash provided by/(used for) investing activities of continuing operations 765 (5,499) Net cash provided by/(used for) investing activities of discontinued operations 7 (1,952) (543) Net cash provided by/(used for) investing activities (1,187) (6,042) Financing activities Net proceeds from issuance of common shares in connection with Vivendi SA's share-based compensation plans 22 195 131 Sales/(purchases) of Vivendi SA's treasury shares - (18) Dividends paid by Vivendi SA to its shareowners 19 (1,325) (1,245) Other transactions with shareowners 2 (1,046) (1) Dividends paid by consolidated companies to their non-controlling interests (37) (33) Transactions with shareowners (2,213) (1,166) Setting up of long-term borrowings and increase in other long-term financial liabilities 23 2,491 5,833 Principal payment on long-term borrowings and decrease in other long-term financial liabilities 23 (1,923) (4,211) Principal payment on short-term borrowings 23 (5,211) (2,494) Other changes in short-term borrowings and other financial liabilities 23 31 2,808 Interest paid, net 5 (528) (544) Other cash items related to financial activities (349) (96) Transactions on borrowings and other financial liabilities (5,489) 1,296 Net cash provided by/(used for) financing activities of continuing operations (7,702) 130 Net cash provided by/(used for) financing activities of discontinued operations 7 1,284 (557) Net cash provided by/(used for) financing activities (6,418) (427) Foreign currency translation adjustments of continuing operations (48) (29) Foreign currency translation adjustments of discontinued operations 7 (44) (18) Change in cash and cash equivalents (2,457) 590 Reclassification of discontinued operations' cash and cash equivalents 7 (396) - Cash and cash equivalents At beginning of the period 18 3,894 3,304 At end of the period 18 1,041 3,894 a.