Financial Report for the Half-Year 2020
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FINANCIAL REPORT FOR THE HALF-YEAR 2020 Financial Report and Unaudited* Condensed Financial Statements for the Half-Year ended June 30, 2020 *The Condensed Financial Statements for the half-year ended June 30, 2020 were subject to a limited review by Vivendi’s Statutory Auditors. The Auditors’ Report on the 2020 half-year financial information follows the Condensed Financial Statements. July 30, 2020 VIVENDI European Company with a Management Board and a Supervisory Board and a share capital of €6,520,308,767.50 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 July 30, 2020 KEY CONSOLIDATED FINANCIAL DATA FOR THE LAST FIVE YEARS ............................................................................................................. 4 I- FINANCIAL REPORT FOR THE FIRST HALF OF 2020 ......................................................................................................................................... 5 1 EARNINGS ANALYSIS: GROUP AND BUSINESS SEGMENTS ............................................................................................................................... 5 1.1 CONDENSED STATEMENT OF EARNINGS ............................................................................................................................................................... 6 1.2 ANALYSIS OF THE CONDENSED STATEMENT OF EARNINGS ..................................................................................................................................... 6 1.3 ANALYSIS OF REVENUES AND OPERATING RESULTS BY BUSINESS SEGMENT ............................................................................................................ 10 2 LIQUIDITY AND CAPITAL RESOURCES ............................................................................................................................................................. 16 2.1 LIQUIDITY AND EQUITY PORTFOLIO ...................................................................................................................................................................... 16 2.2 CASH FLOW FROM OPERATIONS ANALYSIS .......................................................................................................................................................... 18 2.3 ANALYSIS OF INVESTING AND FINANCING ACTIVITIES ........................................................................................................................................... 20 3 FORWARD-LOOKING STATEMENTS – MAJOR RISKS AND UNCERTAINTIES ................................................................................................... 21 4 OTHER DISCLAIMERS..................................................................................................................................................................................... 21 II- APPENDIX TO THE FINANCIAL REPORT ......................................................................................................................................................... 22 1 QUARTERLY REVENUES BY BUSINESS SEGMENT ................................................................................................................................................... 22 III – UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED JUNE 30, 2020 ........................................... 24 CONDENSED STATEMENT OF EARNINGS .......................................................................................................................................................... 24 CONDENSED STATEMENT OF COMPREHENSIVE INCOME ............................................................................................................................ 25 CONDENSED STATEMENT OF FINANCIAL POSITION ...................................................................................................................................... 26 CONDENSED STATEMENT OF CASH FLOWS ..................................................................................................................................................... 27 CONDENSED STATEMENTS OF CHANGES IN EQUITY .................................................................................................................................... 28 NOTES TO THE CONDENSED FINANCIAL STATEMENTS ................................................................................................................................ 31 NOTE 1 ACCOUNTING POLICIES AND VALUATION METHODS ................................................................................................................................... 31 NOTE 2 MAJOR EVENTS .................................................................................................................................................................................... 32 NOTE 3 COVID-19 PANDEMIC IMPACTS ............................................................................................................................................................. 33 NOTE 4 SEGMENT DATA .................................................................................................................................................................................... 34 NOTE 5 FINANCIAL CHARGES AND INCOME .......................................................................................................................................................... 38 NOTE 6 INCOME TAXES ..................................................................................................................................................................................... 38 NOTE 7 EARNINGS PER SHARE ............................................................................................................................................................................ 39 NOTE 8 CHARGES AND INCOME DIRECTLY RECOGNIZED IN EQUITY .......................................................................................................................... 39 NOTE 9 GOODWILL............................................................................................................................................................................................ 40 NOTE 10 CONTENT ASSETS AND COMMITMENTS ................................................................................................................................................... 41 NOTE 11 LEASES ................................................................................................................................................................................................ 42 NOTE 12 INVESTMENTS IN EQUITY AFFILIATES ........................................................................................................................................................ 43 NOTE 13 FINANCIAL ASSETS ................................................................................................................................................................................ 45 NOTE 14 CASH POSITION ..................................................................................................................................................................................... 46 NOTE 15 EQUITY ................................................................................................................................................................................................. 47 NOTE 16 PROVISIONS .......................................................................................................................................................................................... 48 NOTE 17 SHARE-BASED COMPENSATION PLANS .................................................................................................................................................... 49 NOTE 18 BORROWINGS AND OTHER FINANCIAL LIABILITIES ...................................................................................................................................... 51 NOTE 19 RELATED PARTIES .................................................................................................................................................................................. 53 NOTE 20 COMMITMENTS .................................................................................................................................................................................... 55 NOTE 21 LITIGATION ........................................................................................................................................................................................... 56 NOTE 22 SUBSEQUENT EVENTS ............................................................................................................................................................................ 63 IV- STATEMENT ON THE FINANCIAL REPORT FOR THE HALF-YEAR 2020 .................................................................................................. 64 V- STATUTORY AUDITORS’ REVIEW REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION ...................................................... 65 Financial Report for the half-year 2020 Vivendi / 3 Thursday July 30, 2020 Key consolidated financial data for the last five years Preliminary comments: As from January 1, 2019, Vivendi applies the new accounting standard IFRS 16 – Leases. In accordance with IFRS 16, the impact of the change of accounting