Financial Report and Unaudited* Condensed Financial Statements for the Half Year Ended June 30, 2017

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Financial Report and Unaudited* Condensed Financial Statements for the Half Year Ended June 30, 2017 FINANCIAL REPORT FOR THE HALF YEAR 2017 Financial Report and Unaudited* Condensed Financial Statements for the Half Year Ended June 30, 2017 August 31, 2017 *The Condensed Financial Statements for the half-year ended June 30, 2017 were subject to a limited review by Vivendi’s Statutory Auditors. The Auditors’ Report on the 2017 half-year financial information follows the Condensed Financial Statements. VIVENDI Société anonyme with a Management Board and a Supervisory Board with a share capital of €7,103,079,005.00 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 August 31, 2017 KEY CONSOLIDATED FINANCIAL DATA FOR THE LAST FIVE YEARS .......................................................................................................... 4 I- FINANCIAL REPORT FOR THE FIRST HALF OF 2017 ..................................................................................................................................... 5 1 EARNINGS ANALYSIS: GROUP AND BUSINESS SEGMENTS ........................................................................................................................... 5 1.1 STATEMENT OF EARNINGS ............................................................................................................................................................................. 6 1.2 STATEMENT OF EARNINGS ANALYSIS .............................................................................................................................................................. 7 1.3 BUSINESS SEGMENT PERFORMANCE ANALYSIS ............................................................................................................................................... 11 1.4 HAVAS ...................................................................................................................................................................................................... 18 2 LIQUIDITY AND CAPITAL RESOURCES ......................................................................................................................................................... 19 2.1 NET CASH POSITION AND EQUITY PORTFOLIO .................................................................................................................................................. 19 2.2 CHANGES IN NET CASH POSITION ................................................................................................................................................................. 20 2.3 CASH FLOW FROM OPERATIONS ANALYSIS ...................................................................................................................................................... 21 2.4 ANALYSIS OF INVESTING AND FINANCING ACTIVITIES ....................................................................................................................................... 22 3 OUTLOOK ................................................................................................................................................................................................. 24 4 FORWARD-LOOKING STATEMENTS – MAJOR RISKS AND UNCERTAINTIES ................................................................................................ 24 5 OTHER DISCLAIMERS ............................................................................................................................................................................... 24 II- APPENDIX TO THE FINANCIAL REPORT: UNAUDITED SUPPLEMENTARY FINANCIAL DATA ........................................................ 25 1 QUARTERLY REVENUES, INCOME FROM OPERATIONS AND EBITA BY BUSINESS SEGMENT ..................................................................................... 25 III- CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED JUNE 30, 2017 ................................................................... 27 CONDENSED STATEMENT OF EARNINGS ...................................................................................................................................................... 27 CONDENSED STATEMENT OF COMPREHENSIVE INCOME ........................................................................................................................ 28 CONDENSED STATEMENT OF FINANCIAL POSITION .................................................................................................................................. 29 CONDENSED STATEMENT OF CASH FLOWS ................................................................................................................................................. 30 CONDENSED STATEMENTS OF CHANGES IN EQUITY ................................................................................................................................. 31 NOTES TO THE CONDENSED FINANCIAL STATEMENTS ............................................................................................................................ 34 NOTE 1 ACCOUNTING POLICIES AND VALUATION METHODS ................................................................................................................................ 34 NOTE 2 MAJOR EVENTS ............................................................................................................................................................................... 35 NOTE 3 SEGMENT DATA ............................................................................................................................................................................... 41 NOTE 4 INTEREST ........................................................................................................................................................................................ 43 NOTE 5 INCOME TAXES ................................................................................................................................................................................ 44 NOTE 6 EARNINGS PER SHARE ....................................................................................................................................................................... 44 NOTE 7 GOODWILL ...................................................................................................................................................................................... 44 NOTE 8 CONTENT ASSETS AND COMMITMENTS ............................................................................................................................................... 45 NOTE 9 INVESTMENTS IN EQUITY AFFILIATES ................................................................................................................................................... 46 NOTE 10 FINANCIAL ASSETS ........................................................................................................................................................................... 48 NOTE 11 CASH POSITION ................................................................................................................................................................................ 49 NOTE 12 EQUITY ........................................................................................................................................................................................... 49 NOTE 13 PROVISIONS .................................................................................................................................................................................... 50 NOTE 14 SHARE-BASED COMPENSATION PLANS ................................................................................................................................................ 51 NOTE 15 BORROWINGS AND OTHER FINANCIAL LIABILITIES .................................................................................................................................. 53 NOTE 16 RELATED PARTIES ............................................................................................................................................................................. 55 NOTE 17 CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS ...................................................................................................................... 58 NOTE 18 LITIGATION ...................................................................................................................................................................................... 60 NOTE 19 SUBSEQUENT EVENTS ....................................................................................................................................................................... 66 NOTE 20 ADJUSTMENT OF COMPARATIVE INFORMATION .................................................................................................................................... 67 IV- STATEMENT ON 2017 HALF-YEAR CONDENSED FINANCIAL STATEMENTS .................................................................................... 73 V- STATUTORY AUDITORS’ REVIEW REPORT ON 2017 HALF-YEAR FINANCIAL INFORMATION ........................................................ 73 Financial Report for the half-year 2017 Vivendi / 3 Thursday August 31, 2017 Key consolidated financial data for the last five years Preliminary comments: Vivendi made changes in the presentation of its Consolidated Statement of Earnings as from January 1, 2017. For a detailed description of these changes in presentation
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