Financial Statements 2019

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Financial Statements 2019 FINANCIAL REPORT FOR THE YEAR 2019 Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2019 February 13, 2020 VIVENDI European Company with a Management Board and a Supervisory Board with a share capital of €6,515,169,122.00 Head Office: 42 avenue de Friedland – 75380 PARIS CEDEX 08 – FRANCE IMPORTANT NOTICE: READERS ARE STRONGLY ADVISED TO READ THE IMPORTANT DISCLAIMERS AT THE END OF THIS FINANCIAL REPORT. Thursday February 13, 2020 KEY CONSOLIDATED FINANCIAL DATA FOR THE LAST FIVE YEARS ............................................................................................................. 4 I- 2019 FINANCIAL REPORT ...................................................................................................................................................................................... 6 1 EARNINGS ANALYSIS: GROUP AND BUSINESS SEGMENTS ............................................................................................................................... 6 1.1 CONSOLIDATED STATEMENT OF EARNINGS ........................................................................................................................................................... 7 1.2 ANALYSIS OF THE CONSOLIDATED STATEMENT OF EARNINGS ................................................................................................................................. 7 1.3 ANALYSIS OF REVENUES AND OPERATING RESULTS BY BUSINESS SEGMENT ............................................................................................................ 11 2 LIQUIDITY AND CAPITAL RESOURCES ............................................................................................................................................................. 19 2.1 LIQUIDITY AND EQUITY PORTFOLIO ...................................................................................................................................................................... 19 2.2 CASH FLOW FROM OPERATIONS ANALYSIS .......................................................................................................................................................... 21 2.3 ANALYSIS OF INVESTING AND FINANCING ACTIVITIES ........................................................................................................................................... 23 3 OUTLOOK ....................................................................................................................................................................................................... 24 4 FORWARD-LOOKING STATEMENTS ............................................................................................................................................................... 24 5 OTHER DISCLAIMERS..................................................................................................................................................................................... 24 II- APPENDIX TO THE FINANCIAL REPORT ......................................................................................................................................................... 25 1 QUARTERLY REVENUES BY BUSINESS SEGMENT ................................................................................................................................................... 25 III- AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 ............................................. 27 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................... 27 CONSOLIDATED STATEMENT OF EARNINGS .................................................................................................................................................... 32 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ...................................................................................................................... 33 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................................................................ 34 CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................................................... 35 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .............................................................................................................................. 36 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................................................................................... 38 NOTE 1 ACCOUNTING POLICIES AND VALUATION METHODS ................................................................................................................................... 38 NOTE 2 MAJOR EVENTS .................................................................................................................................................................................... 57 NOTE 3 SEGMENT DATA .................................................................................................................................................................................... 58 NOTE 4 EBIT .................................................................................................................................................................................................... 63 NOTE 5 FINANCIAL CHARGES AND INCOME .......................................................................................................................................................... 64 NOTE 6 INCOME TAXES ..................................................................................................................................................................................... 65 NOTE 7 EARNINGS PER SHARE ............................................................................................................................................................................ 71 NOTE 8 CHARGES AND INCOME DIRECTLY RECOGNIZED IN EQUITY .......................................................................................................................... 71 NOTE 9 GOODWILL............................................................................................................................................................................................ 72 NOTE 10 CONTENT ASSETS AND COMMITMENTS ................................................................................................................................................... 76 NOTE 11 LEASES ................................................................................................................................................................................................ 78 NOTE 12 INVESTMENTS IN EQUITY AFFILIATES ........................................................................................................................................................ 79 NOTE 13 FINANCIAL ASSETS ................................................................................................................................................................................ 81 NOTE 14 NET WORKING CAPITAL .......................................................................................................................................................................... 83 NOTE 15 CASH POSITION ..................................................................................................................................................................................... 84 NOTE 16 EQUITY ................................................................................................................................................................................................. 85 NOTE 17 PROVISIONS .......................................................................................................................................................................................... 87 NOTE 18 EMPLOYEE BENEFITS .............................................................................................................................................................................. 88 NOTE 19 SHARE-BASED COMPENSATION PLANS .................................................................................................................................................... 93 NOTE 20 BORROWINGS AND OTHER FINANCIAL LIABILITIES AND FINANCIAL RISK MANAGEMENT ................................................................................. 97 NOTE 21 CONSOLIDATED CASH FLOW STATEMENT .............................................................................................................................................. 102 NOTE 22 RELATED PARTIES ................................................................................................................................................................................ 103 NOTE 23 CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS........................................................................................................................ 107 NOTE 24 LITIGATION ......................................................................................................................................................................................... 111 NOTE 25 MAJOR CONSOLIDATED ENTITIES OR ENTITIES ACCOUNTED FOR UNDER THE EQUITY METHOD ......................................................................
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