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Vivendi at a Glance

Vivendi at a Glance

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AT A GLANCE 2006 - 2007 AT fydibohf

sfhbsefs xbudi at a glance a at INTDQ EN BREF 2006 - 2007

bbrochure_vivendi_200x200_uk.inddDD-AArochure_vivendi_200x200_uk.inddDD-AA DDD-AAD-AA 117/04/077/04/07 223:39:093:39:09 Message from the Chairman and CEO 4

2006 key figures 6

Corporate governance 10

12

18 Canal+ Group

24 SFR

24 Maroc Telecom

32 Games

bbrochure_vivendi_200x200_uk.indd1rochure_vivendi_200x200_uk.indd1 1 117/04/077/04/07 23:39:3423:39:34 Entertainment. It’s vital.

music, television, cinema, mobile, internet, games

Entertainment. It’s as vital as eating, drinking and sleeping. As children, we play as naturally as we breathe. As adults, we thrive on music, images, shows and exchanging with others. Vivendi is investing all of its energy and talent to bring you the wonders of entertainment. Our companies, Universal Music Group, Canal+ Group, SFR, Maroc Telecom, – all leaders in their respective fields – are part of this adventure.

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2006 was a historic year for Vivendi: with adjusted of digital music in the world; Canal+ Group Vivendi’s businesses share many common net income of €2.6 billion – an increase of 18% – deployed television services for mobile phones points: they directly target the final consumer our group recorded its best performance ever. and video on demand; SFR launched 3G+ via strong brands (Universal Music, Canal+, Thanks to the constant efforts of the group’s services; Maroc Telecom launched television SFR, Maroc Telecom, Vivendi Games, etc), employees, who make these excellent operating via ADSL and Vivendi Games expanded and propose creative content based on results possible throughout our businesses, its activities in the mobile games market and subscription models and digital technology. Vivendi surpassed its objective for the year. continued to develop its World of game. These common features also provide Vivendi Our shareholders will directly benefit from with a competitive advantage as they enable these results with a dividend of €1.20 per share Vivendi and its businesses also carried out the group, through the exchange of know-how, (+20% over the prior year). In accordance with several key acquisitions which further reinforce to develop strong competencies in creation, the group’s distribution policy, Vivendi will distribute the group’s positions across various sectors: brands, copyright, subscription management, more than half of its adjusted net income. combination of the pay-TV activities of distribution platforms and in digital technologies. Canal+ Group and TPS; acquisition, by Maroc Vivendi’s strategy is to develop and consolidate Telecom, of the historic operators of Burkina We intend to make best use of these assets the position of its businesses in the entertainment Faso and Gabon; proposed acquisition of BMG to reinforce our positions and to even better meet sector. In 2006, Vivendi invested more than Music Publishing by Universal Music Group and consumer expectations. In 2007, we are already €5 billion in the development and acquisition of reinforcement of Vivendi Games through the benefiting from our strategy and from concrete content, capital expenditure and reasonable acquisition of several games development studios. actions taken to develop the group: the year external growth transactions. is off to a good start, and we already anticipate Through these investments, Vivendi develops an improvement on our 2006 record year. Many new products and services were launched its businesses in content and digital technologies or developed within the group during the year: production and distribution services, Jean-Bernard Lévy Universal Music Group developed digital music providing them with means and opportunities Chairman of the Management Board services and now offers the largest catalog they would not have had as separate entities. and Chief Executive Officer

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bbrochure_vivendi_200x200_uk.indd4-5rochure_vivendi_200x200_uk.indd4-5 44-5-5 117/04/077/04/07 223:39:533:39:53 Revenues €20,044 million against €19,484 million in 2005, +3%

2006 key figures EBITA €4,370 million against €3,985 million in 2005, +10%

Adjusted net income €2,614 million Revenues of more than €20 billion against €2,218 million in 2005, +18% Vivendi’s 2006 revenues reached €20,044 million (+3%). Despite the downturn in the world music market, Universal Music Group Earnings, attributable to equity holders of the parent €4,033 million (UMG) posted a 1.5% increase (at constant currency) largely due to against €3,154 million in 2005, +28% growth in digital music sales. Canal+ Group progressed by more than 5% primarily thanks to good for fiscal year 2006 per share results from the pay-TV business. At the end of 2006, Canal+ Group had Dividend €1.20 more than 8.6 million subscriptions (a net increase of 350,000 in one against €1.00 per share in 2005, +20% year). Despite the continuous growth in traffic (+18%) SFR’s revenues remained Number of employees 34,694 in 77 countries stable (-0.1%) as a result of significant price decreases imposed by the at December 31, 2006 regulator which weighed heavily on the sector. At the end of 2006, SFR registered 17.9 million customers (+4%) and confirmed the success of Vivendi is listed in (Compartment ‘A’ of Eurolist by Euronext Paris S.A. (code ISIN FR 0000127771)) new mobile phone uses such as music, TV/video and games. >>> and is included in the CAC 40 index.

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income per subscriber. After taking into account Adjusted net income registers the costs related to the TPS merger, Canal+ an increase of 18% Group’s EBITA reached €75 million (€74 million on Adjusted net income, which illustrates the >>> a comparable basis*). performance of the group’s activities by excluding Maroc Telecom registered growth of over 10.4%. In 2006, the mobile SFR’s EBITA increased by 6.6% (+7.3% excluding the majority of non-operational and non-recurring telephone client base reached 10.7 million (+30%). Fixed-line and internet ADSL development costs). This rise is due to the items, reached €2,614 million (+18%). This growth activities increased by almost 6%. growth in network revenue, a decrease in customer is the result of excellent operational performances Vivendi Games progressed by more than 25%, thanks to the on-going retention and acquisition costs and strict control by each of the group’s businesses. Adjusted net success of the No. 1 Massively Multi-Player Online Role-Playing Game over other costs. income per share reached €2.27 (€1.93 in 2005). (MMORPG), . Scarface: The World is Yours, F.E.A.R. Maroc Telecom’s EBITA increased by 16% due Earnings attributable to equity holders of the and Eragon also performed well. to an increase in revenue, controlled acquisition parent, up by 28%, reached €4,033 million (€3.50 EBITA increase of almost 10% costs and the tighter control of operating costs. per share) against €3,154 million in 2005 (€2.74 Vivendi’s EBITA in 2006 reached €4,370 million, an increase of almost Vivendi Games recorded strong growth with per share). This excellent performance makes it 10%. UMG posted an EBITA rise of 9.3% (+10.2% at constant currency) an EBITA increase of 109% which reflected the possible for Vivendi to propose the distribution of primarily thanks to strong sales. Canal+ Group’s EBITA reached increase in revenues and the formidable success a dividend of €1.20 per share (+20%) – representing €251 million (excluding costs related to the TPS merger), a 21.8% increase of World of Warcraft. a total payment of €1.4 billion. on a comparable basis*, as a result of the increase in subscriptions and

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Vivendi is governed by a Supervisory Board and a Management Board. The Supervisory Board, chaired by Jean-René Fourtou, determines Vivendi’s strategic orientations and monitors the management of the group by the Management Board. The Supervisory Board, which met 11 times in 2006, has four committees – the Strategy Committee, the Audit Committee, the Human Resources Committee and the Corporate Governance Committee – which examine and prepare for the Supervisory Board’s deliberations. Vivendi’s Management Board is chaired by Jean-Bernard Lévy and comprises the businesses’ operational leaders and Vivendi’s Chief Financial Officer. The Management Board’s mission is to manage the group and implement its strategy. The Management Board met 20 times in 2006.

Supervisory Board Management Board Senior Executives

Sarah Frank Jean-Bernard Lévy Along with Jean-Bernard Lévy, Jean-René Fourtou Member of the Board Chairman of the Management Jacques Espinasse and René of the Foundation of the New York Board and CEO Chairman of the Supervisory Board Chapter of the National Academy Pénisson, Vivendi’s Senior of Television Arts and Sciences Abdeslam Ahizoune Executives are: Henri Lachmann Chairman of the Management Robert de Metz Vice Chairman of the Supervisory Board Gabriel Hawawini Board of Maroc Telecom Chairman of Schneider Electric Professor of Investment Banking Senior Executive Vice President, Strategy and Development (INSEAD) and of Finance Jacques Espinasse (Wharton School) Claude Bébéar Chief Financial Officer of Vivendi Michel Bourgeois Chairman of the Supervisory Executive Vice President, Board of Axa Group Andrzej Olechowski Frank Esser Communications and Public Affairs Senior Adviser of Central Chairman and CEO of SFR Europe Trust Polska Gérard Brémond Philippe Capron Bertrand Meheut Chairman and CEO Executive Vice President of Pierre et Vacances Group Chairman of the Executive Chairman of the Advisory Board of Canal+ Group Jean-François Dubos Board of Booz Allen Hamilton Executive Vice President Mehdi Dazi Doug Morris and General Counsel Chief Executive Officer of Emirates Karel Van Miert Chairman and CEO Secretary of the Supervisory International Investment Company (EIIC) of Universal Music Group and Management Boards Former Vice President of the European Commission René Pénisson Régis Turrini Fernando Falcó y Fernández Executive Vice President, de Córdova Chairman of Vivendi Games Independent member Non-French citizen Senior Executive Vice President, Mergers and Acquisitions Director of various companies Appointment subject to the ratification of the Shareholders’ Meeting on April 19, 2007 Human Resources of Vivendi 10 11

bbrochure_vivendi_200x200_uk.indd10-11rochure_vivendi_200x200_uk.indd10-11 10-1110-11 117/04/077/04/07 23:40:2823:40:28 bbrochure_vivendi_200x200_uk.indd12-ter13rochure_vivendi_200x200_uk.indd12-ter13 12-ter1312-ter13 117/04/077/04/07 23:40:4423:40:44 bbrochure_vivendi_200x200_uk.indd13-bis13 13-bis13 r o c h u r e _ v i v e n d i _ 2 0 0 x 2 0 0 _ u k Universal MusicGroup labels including music industry icons: Island Def Jam labels includingmusicindustry icons:IslandDefJam world’s mostpopularartists throughmajorrecording UMG acquires,marketsanddistributes someofthe global sales. which togetheraccountfornearly threequartersof important NorthAmericanandEuropeanmarkets the worldwithparticularlystrongpositionsin UMG’s recordedmusicbusinessisthelargestin World’s No. 1 inrecordedmusic share oftheglobalphysicalmusicmarket. Present in77countries,UMGhasanestimated26%* music catalog. download optionsandtheworld’s largestdigital market offeringcustomersawiderangeofmusic the worldleaderinthrivingdigitaldistribution recorded musicandpublishing.UMGisalso music contentcompanywithglobalbusinessesin Universal MusicGroup(UMG)istheworld’s No. 1 . i n d d 1 3 - b i s 1 3 2006 REVENUES

€4,955 million

1 3 - b i s 1 3 €744 million 2006 EBITA music publishingcompany with overonemillion and liveperformances.UMPG istheworld’s No. 3 them foruseinrecordings, films, advertisements sitions (asopposedtorecordings) inordertolicense UMPG ownsandacquiresrights tomusicalcompo- UMG isalsoactiveinthemusicpublishingmarket. Through UniversalMusicPublishingGroup(UMPG), A leaderinmusicpublishing influential recordingartistsofourtime. the world,featuressomeofmostpopularand year. UMG’s recordedmusiccatalog,thelargestin stable partofUMG’s recordedmusicrevenueseach Catalog releasesaccountforasignificantand Philips, Verve andImpulse!Records. Records Group,Decca,DeutscheGrammophon, ,Polydor, UniversalMotown Highway Records,MCANashville,Mercury Music Group,InterscopeGeffenA&MRecords,Lost EMPLOYEES 7,869 sify whathasbecomeasignificant revenuestream. music offersandnewsaleschannels tofurtherdiver- UMG isalsoactiveindeveloping innovativeonline in digitizedform. making asignificantamount of itscontentavailable and encouragesitsgrowthdevelopmentby music UMG stronglysupportsthedigitaldistributionof Supporting thedigitaldistributionofmusic Ipanema”. from “Girl and Night” the in “Strangers Pie”, “American as such songs popular includes which catalog a publishing boasts and artists and songwriters contemporary UMPG representssubject toregulatoryapproval. some of theits musicpublishingsubsidiary. Thisacquisitionis most importantBertelsmann toacquireBMGMusicPublishing, UMG announcedthesigningofanagreementwith owned oradministeredtitles.InSeptember2006, mobile musicentertainmentproducts. the marketplacetofulfill growingdemandfor ringers andmobilevideostreamsarealsoentering New productssuchasOTA videodownloads, and throughpermanentdownloadsalesatiTunes. videos withinportalssuchasYahoo!, AOLandMSN revenue fromtheonlineexploitationofitsmusic develop worldwide.In2005UMGbegantogenerate New waystoexploitdigitizedcontentcontinue occurred intheUK,France,GermanyandJapan. mobile telephones.OutsidetheUS,notablegrowth by Over-the-Air (OTA) downloadspurchasedvia in downloadsviaApple’s iTunes andlaterintheyear thirds in2006.Thisgrowthwasdrivenbyanincrease tracks plusalbumtracks)increasedbynearlytwo In theUS,downloadsofUMGdigitaltracks(single

* According to management estimates at December 31, 2006

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2 3 : 4 0 : 4 7 Universal Music Group

UMG’s best-selling albums in 2006 Best-selling artists in regional areas

U2 hit the top of UMG’s 2006 best-selling albums list with Eyes Open, the fourth In 2006 Rosenstolz, Germany’s pop the singles compilation U218 album from Snow Patrol: music favorites, released their one of the most significant 10th album Das grosse Leben pop/rock discoveries of the decade Wolfmother, Australia’s hard rock sensation and 2007 Grammy Award winner

Olivia Ruiz, UMG’s top-selling artist Amore, Andrea Bocelli’s first ever in France in 2006 album of popular songs, spans musical with her debut album eras from the 1920s to the 1980s, La Femme Chocolat in Italian, Spanish, French and English

The SamSons: currently Indonesia’s Sam’s Town, biggest band with 650,000 albums and the second chart- 2 million* ringback tones sold to date With her third album Loose, Canadian topping album singer/songwriter Nelly Furtado from the Las Vegas In the UK, the three top-selling albums makes an impressive transition pop/rock group in 2006 were by UMG artists , According to management estimates at December 31, 2006 * from her earlier pop and folk The Killers Snow Patrol and (pictured) inspired albums to the high- Take That Scissor Sisters energy hip hop/R&B genre

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49th Annual Grammy award winners The world’s largest recorded music catalog Best Pop Instrumental UMG is home to the world’s Album: largest recorded music catalog The queen of R&B, UMG’s Peter Frampton’s featuring a host of legendary Mary J. Blige, was one of the biggest Fingerprints artists including Louis Armstrong, winners at the 49th Annual Grammy Jimi Hendrix, Elton John, Bob Marley, Awards bringing home three Luciano Pavarotti, Edith Piaf, trophies in the R&B category Michel Sardou, Andrew Lloyd Webber including Best R&B album and Barry White

Best Classical Contemporary Composition and Best Opera Recording: Osvaldo Golijov for Ainadamar (Fountain of Tears) Music videos on demand The International Music Feed (IMF), launched by UMG in 2005, offers video-on-demand, broadband Best Rap Album: and mobile content throughout Release Therapy the world as well as 30 audio channels by Ludacris of music. IMF programming is also now Best Rap Song: Best Hard Rock Performance: available on multiple national mobile “Money Maker” “Woman” from Wolfmother’s carriers in the US, the UK and France from Ludacris’ album self-titled album Release Therapy

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2006 REVENUES 2006 EBITA EMPLOYEES €3,630 million €75 million 3,699

Canal+ Group is the leader in pay-TV in France digital terrestrial television, satellite, cable and offer has also been adapted to create CanalSat Mobile video content from the premium channel’s most with more than 10 million subscriptions to a wide ADSL networks. – a television channel package for third generation popular programs (available via SFR, Orange and range of offers including Canal+, CanalSat and the “Canal+ Le Bouquet”, the first multi-channel (3G) mobile telephones. CanalSat Mobile is available Bouygues Telecom). former TPS (regrouped under a new entity, Canal+ premium offer in France, features four premium to SFR and Bouygues Telecom subscribers. CanalPlay, Canal+ Group’s legal video downloading France). Canal+ Group is also a major producer of content channels built around Canal+. Canal+ service, offers a large variety of videos. CanalPlay French pay-TV channels and, through StudioCanal, Group also produces a range of channels dedicated At the cutting edge of new television services is accessible via PCs (www.canalplay.com) and a significant contributor to the financing, acquisition to subscribers’ favorite themes – now further Canal+ Group is present in digital terrestrial television television (via ADSL). and distribution of films. enriched by TPS’s channels – which include: films with two pay-TV packages: a mini-offer comprised (CinéCinéma), sport (Sport+, InfoSport), news of Canal+, Canal+Cinéma and Canal+Sport as well StudioCanal, a leader in film Canal+: TV channels for all tastes (i>Télé), series (Jimmy), documentaries (Planète) as CanalSat’s “Minipack”, a supplementary offer StudioCanal, a 100% subsidiary of Canal+ Group, is a A pioneer in the field of pay-TV since 1984, Canal+ and programs for young people (Piwi, Télétoon). which includes Canal J, Eurosport, Paris Première major player in Europe in the production, acquisition is the leading premium general-interest channel in and Planète. Canal+ Group also broadcasts i>Télé, and distribution of films. Along with Canal+, France which offers a unique programming format, CanalSat, Canal+’s digital television offer a free 24 hour information channel. StudioCanal is one of the principal partners of French with an exclusive line-up of the most recent films, CanalSat – the only satellite TV offer in France Canal+ Group’s offers can also be easily accessed cinema through its contributions to co-productions the best in sport, documentaries, news, fiction and following the agreement with TPS at the beginning of by 3G mobile phones. In addition to CanalSat Mobile, and guaranteed minimums for film distribution. entertainment. Canal+ is available via analog and 2007 – is also available via ADSL. This multi-channel Canal+ Group offers Canal+ Mobile which features

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French Premier League soccer The entire competition broadcast More than 10 million subscriptions exclusively on Canal+ Group’s channels for to Canal+ Group’s offers with 5.14 million subscriptions* three seasons (2005-2006 to 2007-2008) to the Canal+ premium channel alone

Canal+ Le Bouquet The No. 1 multi-channel The best in fiction premium offer in France Canal+, home to the most sought-after series (24, Desperate (Canal+, Canal+ Cinéma, Housewives) and creative and engaging French fiction such as Canal+ Sport, Canal+ Djihad, the made-for-TV two-part film, and the series Reporters Décalé, Canal+ Hi-Tech)

Quality programs At the end of 2006 * 430 films each year on Canal+ Canal+ continues to offer a large selection including 300 first runs on French TV. Canal+ holds the exclusive of quality entertainment and information rights to show films for the first time on French TV from several programming with a concentrated line-up major American film studios including 20th Century Fox, NBC which includes: the daily live talk show Universal, Sony/Columbia and DreamWorks. Canal+ also spent more Le Grand Journal (pictured); politics each than €145 million on acquiring French-language films in 2006 Sunday with Dimanche+; the much- celebrated news parody Les Guignols de l’Information, investigative reporting with Lundi Investigation and the best in local Unparalleled expertise and international music with La Musicale in sports coverage 1,500 hours of sports programming each year, TV channels for all tastes Canal+ Group produces around 20 theme channels exclusive broadcasting rights, no ad breaks, incisive which are now complemented by the former TPS commentaries by prestigious commentators, theme channels: CinéCinéma, TPS Star, Sport+, exciting and innovative production techniques InfoSport, i>Télé (pictured), Jimmy, Planète and Piwi

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Five Awards at Cannes in 2006 In 2006, StudioCanal took home five trophies from the 2006 Cannes Film Festival including: Best Performance CanalSat: almost 300 channels and services by an Actor for Rachid Bouchareb’s film including 55 satellite and ADSL exclusives Days of Glory (pictured), co-produced and distributed by StudioCanal, and Best Director for Babel by Alejandro González Iñárritu (for which StudioCanal holds the rights in France and in several French-speaking Two TV offers for countries) mobile telephones CanalSat Mobile, offering 30 live channels and Canal+ Mobile, a video-on-demand offer based on the premium channel, Canal+ Four Césars for StudioCanal films in 2007 Three films co-produced and/or distributed by StudioCanal received awards at France’s annual film More than 2,000 videos on demand industry event, the César Awards. CanalPlay offers more that 2,000 videos on demand, 1,000 of The winning films were Je Vais Bien, which are films made for cinema. More than 2.4 million videos Ne T’en Fais Pas (Most Promising Actress were purchased via CanalPlay in 2006 and, since January 2007, for Mélanie Laurent and Best Supporting customers can download permanently and burn films on DVDs Actor for Kad Merad), Days of Glory (Best Original Screenplay), and Orchestra Seats (Best Supporting Actress for Valérie Lemercier). For the 14th consecutive year Canal+ A library of more than 5,000 films broadcast the entire award ceremony live StudioCanal’s library comprises more than 5,000 French, English and American films including Basic Instinct, Les Bronzés, Podium and The Pianist. StudioCanal became the leading French distributor in France (and third overall) in 2006 thanks to the success of two French films Prête-Moi ta Main and Days of Glory (Indigènes)

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bbrochure_vivendi_200x200_uk.indd22-23rochure_vivendi_200x200_uk.indd22-23 22-2322-23 117/04/077/04/07 23:41:2523:41:25 bbrochure_vivendi_200x200_uk.indd24-ter25rochure_vivendi_200x200_uk.indd24-ter25 24-ter2524-ter25 117/04/077/04/07 23:41:3623:41:36 Vivendi is a leader in fixed and mobile telecommunications – in France with SFR and in Morocco with Maroc Telecom. Through its presence via these businesses in mobile and fixed-line telecommunications and internet access, Vivendi encourages communication and exchange – offering entertainment to all of its clients.

SFR Maroc Telecom

2006 REVENUES 2006 EBITA EMPLOYEES 2006 REVENUES 2006 EBITA EMPLOYEES €8,678 million €2,583 million 8,014 €2,053 million €912 million 11,259

SFR, a 56% subsidiary of Vivendi, is the second largest Helping businesses to become more mobile Maroc Telecom, a 51% subsidiary of Vivendi, is the Fixed-line, data and internet mobile telecommunications operator in France. SFR SFR performed extremely well in the corporate leader in Morocco’s telecommunications market. Maroc Telecom offers residential, professional and is also present in the fixed-line telecommunications sector in 2006. With the aim of promoting a global Maroc Telecom is listed on the Casablanca and corporate customers a wide range of fixed-line market with a 40.5% stake in the country’s No. 2 approach which goes beyond voice communications, Paris stock exchanges and holds 51% of the historic telecommunications services: voice, data transmission operators in Mauritania (Mauritel), Burkina Faso fixed-line operator, Neuf Cegetel. SFR developed a range of innovative mobile offers and internet access. Offers for residential customers (Onatel) and Gabon (). including mobile internet and email access as well (marketed under the El Manzil brand) include Making life more mobile with 3G services as machine-to-machine communications. Morocco’s No. 1 mobile operator communications tariffs, packs, unlimited calling offers SFR, the first operator to launch third generation (3G) and rechargeable capped plans. mobile services in France in 2004, continued to enrich Non-stop innovation The No. 1 mobile telecommunications operator Maroc Telecom is particularly dynamic in developing its offers in 2006 accompanying the strong growth in In December 2006, SFR launched its WiMax (high in Morocco, Maroc Telecom continued to drive internet offers under the Menara brand, and demand for multimedia mobile services (music and speed wireless connection) services deployed the Moroccan market in 2006 through innovation music video downloads, games and consultation of in partnership with Neuf Cegetel through the and development of services including unlimited registered strong growth especially in ADSL thanks to mobile internet sites via the Vodafone Live! portal). consortium SHD. SHD obtained two WiMax licences call options, non-physical recharge options and a reduction in tariffs and frequent promotions. In 2006 Maroc Telecom also launched TV via ADSL, a first SFR continued to develop its traditional telephone for the French regions Ile-de-France and Provence- new services such as mobile internet messaging. Maroc Telecom also expanded its handset range in Morocco and in Africa. services especially voice communications, text Alpes-Côte d’Azur. and reduced the price of basic models. With the messaging (SMS) and multimedia messaging (MMS). In 2007, SFR continues to innovate by developing UMTS licence it obtained in 2006, Maroc Telecom In 2006 SFR launched France’s first 3G+ offer which services including Happy Zone and an ADSL aims to further develop the Moroccan mobile increases, once again, data downloading speeds. option. With Happy Zone, SFR customers can make telecommunications market. unlimited telephone calls from their mobiles while at and nearby their homes to fixed lines in France (excluding French overseas territories).

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1 SFR: the No. 2 5 /2 hours per month SFR clients consumed in mobile on average 327 minutes telecommunications of voice communication in France per month in 2006** – close 1 with nearly 17.9 million to 5 /2 hours (against customers at the end of 2006 SFR Music More than less than 5 hours in 2005) (+4% against 2005) and the leading mobile 600 games a market share of 34.6%* music platform in France with SFR customers have more than nearly 4 million 600 games at their fingertips. titles downloaded More than 4 million games in 2006 and a catalog were downloaded in 2006 of 600,000 tracks SFR “Jeunes Talents” SFR Jeunes Talents (www.sfrjeunestalents.fr), a mobile and internet portal aimed at More than 6 billion discovering new artists, was launched in text messages September 2006. In three months, nearly SFR established new records in 2006 6,000 artists subscribed to the site uploading 2.7 million with 6.3 billion text messages and 10,000 titles 3G clients 168 million multimedia messages SFR registered nearly sent (against, respectively, 5.4 billion 2.7 million 3G clients and 98 million messages in 2005) Excluding clients on behalf of third parties (MVNO, 728,000 at the end 2006). Source: The French * Number of minutes from calls both sent and received telecommunications regulatory authority (ARCEP). ** at the end of 2006 – surpassing its objectives SFR’s TV-Video offer for the year 80 television channels for mobiles and more than 60 programs. In 2006, SFR clients watched more than 14 million “TV-Video” sessions – 2 million of which were downloaded during the soccer World Cup

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SFR Happy Zone Launched in France in March 2007, the SFR Happy Zone offer allows SFR customers, Strong growth in data services who subscribe to the offer, to make unlimited phone calls from their mobile SFR’s mobile solutions have been well received by the business sector. phones while at and around their home to fixed lines in France (excluding French In 2006, the number of PC Mobile Connect Cards increased by 69% overseas territories). In April 2007, thanks to the SFR Happy Zone + ADSL option, and the BlackBerry mobile messaging service grew by 86% SFR will also offer ADSL services via its SFR Box (20MB, voice over IP, television). With this offer, customers will benefit from continuity of service between their mobile phone and their PC (a single address book, a single answering service and SFR Mail) and from a high-quality customer relations service

The widest 3G/3G+ coverage MVNO SFR has the widest 3G/3G+ coverage At the end of 2006, six mobile in France with 65% of the population virtual operators (MVNO) were covered at the end of 2006 under contract with SFR. SFR welcomes 728,000 clients on its own network via third-party clients

No. 1 in network quality In 2006, SFR was once again ranked No. 1 for the quality of its network. The French telecommunications authority, ARCEP, ranked SFR at No. 1 or equal No. 1, 28 times across 32 categories during its annual 2005/2006 audit on mobile Corporate lines up by 16% telecommunications network quality in France 2006 saw a very strong corporate sales performance by SFR Entreprises: the number of lines rose by 16% against 2005

28 29 bbrochure_vivendi_200x200_uk.indd28-29rochure_vivendi_200x200_uk.indd28-29 28-2928-29 exchange117/04/077/04/07 23:41:5723:41:57 bbrochure_vivendi_200x200_uk.indd30-31 30-31 r o c h 30 u r e _ v i v Maroc Telecom e n d i _ 2 0 0 x 2 0 than 1.4billiontextmessages–anincrease 0 In 2006,MarocTelecom’s clientssentmore _ u k . i n d d 3 0 (all modesofaccessincluded*) with391,000connections - Maroc Telecom holds98%oftheinternetaccessmarket 3 More thanonebillion 1

No.1 inmobiletelecommunicationsMorocco

3 In September2006,MarocTelecom launchedanewrangeoffixed- 0 - 3 1 to MarocTelecom’s fixed-linecustomers,locally andnationally to itsinternetservicesatthe end of2006–more line offerswhichenablecustomerstomakeunlimitedcalls text messages of 23%against2005 than 98%ofwhichareADSLsubscribers telecommunications marketwith10.7millionclientsattheend of 2006(+30%against2005)andamarketshare66.9%* Maroc Telecom istheleader intheMoroccanmobile Internet Access Unlimited calloptions in Morocco,withamarketshareofmorethan98%* Maroc Telecom istheuncontested leaderinADSL covers morethan97%ofthe Moroccan population Maroc Telecom’s fixed-lineanddatatransmission Maroc Telecom hasanestimated90%** and assuresnationalcoverage. ItsGSMnetwork network hasacapacityofnearly1.9millionlines 98% oftheADSLmarket of Moroccanpublictelephonelines with 157,000linesattheendof2006 In 2006,MarocTelecom launcheditstelevisionservicevia ADSL whichprovidesclientswithfourchannelpackages Public telephones and morethan60nationalinternationalchannels National coverage Television viaADSL 117/04/07 23:42:02 7 / 0 4 / 0 31 7

2 3

: * Source: The Moroccan Telecommunications Regulatory 4

2 Authority (ANRT). ** Source: Maroc Telecom : 0 2 bbrochure_vivendi_200x200_uk.indd32-ter33rochure_vivendi_200x200_uk.indd32-ter33 32-ter3332-ter33 117/04/077/04/07 23:42:1023:42:10 bbrochure_vivendi_200x200_uk.indd33-bis33 33-bis33 r o c h u r e _ v i v e n d i _ 2 0 0 x 2 0 0 _ u k Vivendi Games development studiobestknown forcreating Blizzard Entertainmentis aworld-renowned Online andVivendi GamesMobile. Blizzard Entertainment,Sierra Vivendi Gamesisdrivenbyfourcreativedivisions: licensed material. the world andacatalogofitsownoriginal of franchisesuccess,developmentteamsaround Vivendi Gameshasaglobalpresence,history in thePC,consoleandhandheldgamesmarkets. (MMORPG) categoryandisbuildingonitsposition massively multi-playeronlinerole-playinggames The companyistheleaderinsubscription-based distributor ofmultiplatforminteractiveentertainment. Vivendi Gamesisaglobaldeveloper, publisherand . i n d d 3 3 - b i s 3 3 2006 REVENUES

€804 million 3 3 - b i s 3 3 World World €115 million 2006 EBITA handheld gamingdevicesand personalcomputers. innovative, high-qualityentertainment forconsoles, Sierra Entertainmentcreates andpublishes first month. sales withmorethan3.4millioncopiessoldinits on toestablishanewone-monthrecordforPC-game 24 hoursafteritsreleaseinJanuary2007,andwent Crusade its expansionset has builtonthegame’s successwiththereleaseof services inseveralregions.BlizzardEntertainment is availableinsixlanguageswithin-gamesupport storm with8.5millionsubscribers*. MMORPG category, hastakenthegamingworldby of Warcraft of Warcraft whichsoldcloseto2.4millioncopieswithin , , theworld’s mostpopulargameinthe World ofWarcraft: The Burning , StarCraft EMPLOYEES , and 3,567 World of Warcraft of World Warcraft . World World

include and arangeofotherplatforms. SierraOnline’s titles session casualonlinegamesfor PC,XboxLiveArcade developing andpublishinghigh qualityshortandmid- Sierra Online,anewlycreated division,focuseson Sierra Online in October2006. is Yours Dragon including licenses fromindustry-leadingcontentpartners, based onoriginalintellectualpropertyandpopular Sierra Entertainmentfeaturesaportfoliooftitles Canada andSwordfishStudiosintheUK. Entertainment inSweden;Radical studios: HighMoonStudiosintheUS;Massive Sierra Entertainmentishometofourintegrated , wastheNo. 1 sellingvideogameintheUS Scarface F.E.A.R. and , Ice Age , anaward-winninggamefor . Scarface: the World the Scarface: , The Year Force number ofaward-winningtitles, including: 60 countries.Vivendi GamesMobilehaslauncheda 90 operatorsanddozensofWeb portals inmorethan property gameswhicharedistributedbymorethan licenses andclassicSierraEntertainmentintellectual original intellectualproperty, popularentertainment mobile market.Thedivisionpublishesgamesbasedon creates andpublishesgamesfortheworldwide Vivendi GamesMobile,anothernewlyformeddivision, Vivendi Games Mobile PC onlinegamestargetingthemassmarket. developing avarietyofotherXboxLiveArcadeand developer JCEntertainment,Inc.Thedivisionisalso Basketball LiveArcade,andtheupcoming bySpikeTVinDecember2006. whichwasnamed , anonlinePCgamefromleadingKorean Best Wireless Game of the FreeStyle Street SWAT

* At March 7, 2007

117/04/07 23:42:13 7

/ 0 4 / 0 7

2 3 : 4 2 : 1 3 Vivendi Games

World of Warcraft Ice Age 2 The Meltdown The world’s most popular massively multi- Based on the worldwide blockbuster animated film, Ice Age 2 player online role-playing game with The Meltdown is available for all platforms including Nintendo’s 8.5 million subscribers* throughout the world Assault Heroes Sierra Online’s first title for Microsoft’s service and winner of the Xbox Live Arcade Game of World of Warcraft: The Burning Crusade the Year Award (IGN.com, the internet’s Eragon The first World of Warcraft expansion set – featuring hundreds No. 1 information site) Gamers can escape of new quests, new creatures, monsters and several unexplored to a world of dragons, dungeons – sold nearly 2.4 million copies within the first destiny and adventure. 24 hours of its release, representing nearly 30 copies per second This unparalleled : action-adventure fantasy is the official A New Beginning game based on the epic The latest installment to the 17 million-unit-

adventure film At March 7, 2007 * selling Spyro franchise features leading Hollywood voice-over cast members Scarface: The World is Yours including and Gary Oldman Tony Montana, one of the most ruthless F.E.A.R. gangsters ever depicted on film, is back in Already a critical and Scarface: The World is Yours - the No. 1 commercial hit, F.E.A.R., video game and the No. 1 Xbox game the paranormal action SWAT Force in the United States in October 2006 thriller, brings a new level Named Best Wireless Game of the Year of gameplay to by Spike TV in December 2006, SWAT Force, or with stunning visual effects Special Weapons and Tactics, equips gamers to and unpredictable encounters deal with the most dangerous urban crisis situations

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bbrochure_vivendi_200x200_uk.indd34-35rochure_vivendi_200x200_uk.indd34-35 34-3534-35 117/04/077/04/07 23:42:1423:42:14 Addresses Shareholder and Information Internet Sites Vivendi: www.vivendi.com Information Universal Music Group: www.umusic.com Head Office Canal+ Group: www.canalplusgroupe.com 42 avenue de Friedland SFR: www.sfr.fr Shareholder Relations can be contacted by telephone 75380 Paris cedex 08 Maroc Telecom: www.maroctelecom.ma

between 9.00 am and 6.00 pm, Monday to Friday Completed March 27, 2007 - 343 134 763 Paris France Vivendi Games: www.vivendigames.com (Paris time: UTC/GMT +1 hour or +2 hours daylight saving time). Conception and editorial: Telephone: +33 (0) 1 71 71 10 00 Vivendi - Corporate Communications. For shareholders calling from France: Fax: +33 (0) 1 71 71 10 01 Creation and production: 0 811 902 209 (price of a local call). arthur & eve, 12 rue Deguerry - 75011 Paris For shareholders calling from other countries: +33 (0) 6 10 63 66 06 +33 (0) 1 71 71 34 99. New York Office (graphic design and illustrations: Eve Paoli for arthur & eve, SARL). E-mail: [email protected] 800 Third Avenue Photo credits: Lebon/Gamma, A. Benainous/Gamma and New York, NY 10022 photo libraries of Universal Music Group, Canal+ Group (R. Arpajou, D. Bardou, M. Bruno, A. Détienne, G. Perrin, The 2006 Annual Report is available on the group’s U.S.A. ABC, Inc./Andrew Eccles, Regency Entertainment (USA), web site (www.vivendi.com). It can also be mailed Inc./Monarchy Enterprises SARL), SFR (Ph. Castano, Th. Gonzalez, to shareholders upon request by contacting Vivendi’s Telephone: +1 212 572 7000 E. de Malglaive/Gamma, Getty, DR), Maroc Telecom, Vivendi Games. offices.

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bbrochure_vivendi_200x200_uk.indd36-37rochure_vivendi_200x200_uk.indd36-37 36-3736-37 117/04/077/04/07 23:42:1923:42:19 music, television, cinema, mobile, internet, games

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bbrochure_vivendi_200x200_uk.indd38rochure_vivendi_200x200_uk.indd38 3838 117/04/077/04/07 23:48:4023:48:40

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