MARCH LETTER 2017 TO SHAREHOLDERS

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S O T O H P AMBITIOUS S TRATEGY VINCENT ARNAUD BOLLORÉ DE PUYFONTAINE ivendi’s teams are The teams in charge of content and media CHAIRMAN OF CEO THE SUPERVISORY building a global work together as an industrial group, so that BOARD Vcontent and media they create more value to shareholders. group. This is one of the third millennium's Vivendi is also expanding in the distribution most attractive industries, first of all because market by strengthening its own capabilities in the years ahead, many more consumers through Canal+ Group, by acquiring platforms will be able to enjoy entertainment. Not only such as Dailymotion and forming partnerships will two billion people in Africa, Asia and with telecoms operators and digital platforms South America enter the leisure economy by such as Google, Apple, Facebook and Amazon. 2025, they will also be better equipped to Content can in this way be offered both on a access entertainment content. Worldwide, local and global scale. the number of smartphones, now considered Vivendi is able to pursue its far-reaching strat -

the premier viewing device, is expected to egy in several regions, including Africa, Asia rise from four billion in 2016 to more than six and Southern Europe, due to its very robust

billion in 2020. balance sheet and the long-term stability

If we look at the world's most popular forms of provided by its core shareholder, the Bolloré

content today – music, video games, movies/TV family group (which held 29% of the voting series and TV shows/live broadcasts – we can rights in April 2017).

see that Vivendi already owns most of them. But These ambitious developments, which are it has made major acquisitions to own every type going to drive the creation of high value, of content consumed worldwide, with will go hand in hand with a dividend payout

Universal Music Group (music), Gameloft (mobile representing a yield of approximately 2% I games) and Canal+ Group (TV/motion pictures). per share. R E S U L T S 2

THE EBITA SHOULD INCREASE

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R n 2016, Vivendi recorded were very well received, as individual subscribers and 2.9

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R adjusted net income of

E well as carryover sales of million Free and Orange cus -

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© €755 million (+8.4%), a Justin Bieber’s music. tomers (FTTH). Income from almost stable revenues of operations was €303 million Hervé Philippe I €10.8 billion (+0.5%). The compared to €542 million in Vivendi Chief Financial CANAL+ GROUP: outlook for 2017 is strong: the previous year, due mainly Officer and member of new sales initiatives the Management Board revenue should increase by in France to a drop in the number of more than 5%. Thanks to the Canal+ Group revenues individual subscribers in main - measures taken last year, amounted to €5.253 billion, a land France (excluding partner - EBITA should increase by 2016 was fuelled by decrease of 4.7%. In France, it ships with telecom operators ) around 25%. the strong performance launched number of new of- and investment in programs. of Universal Music Group. ferings in November 2016 and Canal+ Group felt UMG: signed agreements with Free GAMELOFT: the first effects of the strong growth in subscrip - and Orange in the fourth quar- accelerating growth transformation tions and streaming ter of 2016. International Gameloft’s revenues amounted plan in France, while Universal Music Group’s growth continued, particularly to €132 million in 2016 second its international activities revenues amounted to €5.267 in Africa (an increase of half (Vivendi consolidated remained buoyant. billion, an increase of 3.1%, 692,000 subscribers, bringing Gameloft on 29 June 2016). The Group’s outlook for fuelled by growth across all its the total to nearly 2.8 million). Growth accelerated in the sec - 2017 is confidently activities. Growth in revenue By the end of December 2016, ond half of 2016. The business optimistic. linked to subscriptions and the Canal+ Group portfolio was buoyed up by the strong streaming remains particularly had risen to about 11.5 million development of its mobile ad - significant at +57.9%.* Income vertising agency, the contin - from operations amounted to ued success of a number of €687 million, up by 9.8% due games and the successfull to an increase in revenue and Dividend of €0.40 launch of “Disney Magic King - cost savings. New releases per share proposed doms.” from Drake, Rihanna, Ariana by the management Thanks to the solid growth of Grande and the Rolling Stones board its revenue and the drop in its operating costs, income from *At constant exchange rates. operation amounted to €10 KEY FIGURES Change Change at constant million in 2016 second half 2016 compared to currency and year, with a corresponding 2015 perimeter compared 7.6% margin, a record level to 2015 since the second half of 2013. Revenues €10,819 M +0.5% -0.2% EBITA €724 M -23.2 % -21.5 % VIVENDI VILLAGE: growth of CanalOlympia EBIT €1,194 M -2.9 % Vivendi Village recorded rev - Earnings attributable to enues of €111 million in 2016, Vivendi SA shareowners €1,256 M€ -35.0 % an increase of 10.9%, and a loss of €7 million. Earnings from continuing operations attributable to Vivendi SA shareowners €1,236 M€ +77.0 % The activities of Vivendi Ticket - ing and MyBest-Pro distin - Return to shareholders €4.2 bn guished particularly, recording The key figures presented above take into account the changes in scope of consolidation occurring or announced in 2015 and 2016 , of increases in their income which the accounting impact, particularly compliance with IFRS 5, is described in the 2016 Financial Report, which is available at from operations of 11.8% www.vivendi.com or upon request from the Vivendi Shareholders’ Department. and 23.5% respectively. 3

In a difficult climate, due to CANAL+ GROUP PUTS BOXING the terrorist attacks in Paris, the Olympia maintained its BACK TOPPING THE BILL 2016 revenues. In Africa, In signing a major agreement with Tony Yoka, Canal+ aims CanalOlympia has opened four to support the champion and promote boxing on its channels. new venues since the begin - Tony Yoka is also preparing a show for C8. ning of the year. anal+ Group has signed an NEW INITIATIVES: Cexclusive four-year agree -

R ment to broadcast the profes -

D A show Studio+ already in six countries © sional fights of French boxer in preparation The New Initiatives business Maxime Saada Tony Yoka, Olympic Heavyweight segment (Dailymotion and Chief Executive Officer for C8 Vivendi Content) recorded of Canal+ Group revenues of €103 million (compared with €43 million gold medallist in Rio in 2015) and an income from in 2016 and World operations loss of €44 mil - Amateur Champion lion (compared with -€18 in 2015. million in 2015). With its long history Dailymotion is working on a as a boxing broad - technical and editorial re - caster, Canal+ aims launch for 2017 second to invest still further quarter. Vivendi Content de - in this spectacular veloped Studio+, a premium sport via totally im - short digital series offer, and

mersive filming of R launched it in six Latin D fights and coverage American and European © of major evening countries. I TONY YOKA, OLYMPIC AND WORLD AMATEUR BOXING CHAMPION events. Tony Yoka is one of France’s greatest-ever champi -

Appointment of Marie-Annick Darmaillac ons, whose career took off in

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N to Vivendi’s CSR Department A

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Z Marie-Annick Darmaillac was appointed Vice President, Corporate Z

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Social Responsibility of Vivendi on February 1, 2017. She will report

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I to me as member of the Vivendi Management Board and General

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P Counsel of Vivendi and Canal+ Group. sport and to promote boxing in © general. Vivendi’s new CSR Vice President intends to focus on the involve- Frédéric Crépin ment of all Group subsidiaries in CSR matters and on the employees The sport will therefore occupy General Councel who deal with these issues. CSR is supported through internal col- a prime position on Canal+ of Vivendi alongside football, rugby and and Canal+ Group laboration and sharing. It must be of concern and percolate through the whole Group. Formula 1. Mr Yoka is also working with In 2015, Marie-Annick Darmaillac was appointed Head of Internal presenter Cyril Hanouna to Talent Promotion and Development at Canal+Group. Prior to that, from 2005 to prepare a television show that 2015, she was Deputy General Counsel of Groupe Bolloré, responsible in particular will be aired on C8 in 2018. for the professional development of high potential managers and in charge of ethical This follow-up program is and sustainable development issues. aimed at “seeking out new Marie-Annick Darmaillac is a qualified judge and has held several positions in this champions”. The boxer will be capacity, notably Deputy Head of Continuing Education at the French National joined in this by his partner, Es - School of Magistracy. Please join me in welcoming Marie-Annick. telle Mossely, who also won Olympic Boxing Gold in Rio. I 4

GAMELOFT RANKED FIRST FOR MOBILE VIDEO-GAME DOWNLOADS 016 saw great success for 2Gameloft. For the second consecutive year, App Annie has ranked the mobile video-game publisher, acquired by Vivendi O N A

C in the summer of 2016, as the S I H C world’s leading publisher of N A E J

mobile games, as

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© O judged by the number L Leading mobile E

Stéphane Roussel M

of downloads from A G Chief Operating Officer game publisher at ASPHALT 8: AIRBORNE the App Store and © of Vivendi and Chairman the App Store and and CEO of Gameloft Google Play. More Google Play siastically Furthermore, the publisher rein- than one billion of its received, par - forced its independence in the games were down - ticularly in Japan, second half of 2016 by achieving The mobile video-game loaded in 2016 on all the plat - where it was marketed in part - 67% of its sales with its own publisher had an excellent forms available throughout the nership with GunHo and ranked game franchises. This percent- year in 2016, supported world! In April, Gameloft was de - top in iOS and Google Play down - age is steadily growing: from by its catalogue of flagship clared Best Publisher for 2006- loads for a number of days (one 57% in 2013 to 60% in 2014 and franchises, such as 2016 at the Pocket Gamer million of downloads in Japan 20 64% in 2015. Asphalt, Modern Combat Legends Awards. days after its release). In the second half of 2016, and Dungeon Hunter, These rankings recognize the suc - Mobile advertising agency Gameloft (fully consolidated by and the success of the new cess over the years of games such Gameloft Advertising Solutions Vivendi on June 29, 2016) “Disney Magic Kingdoms” as Asphalt 8: Airborne, Dungeon also experienced very strong recorded sales of €132 million game. Hunter 5, Dragon Mania Leg - growth. Similarly, Gameloft ben - (after €125 million in the first ends, March of Empires and efited from a better monetization half) and a current operating Modern Combat 5: Blackout. In of existing game services as well margin of 7.6% – a level last 2016, the new Disney Magic as a more targeted and a more achieved in the second half of Kingdoms game was also enthu - effective user acquisition policy. 2013! I

UNIVERSAL MUSIC GROUP , AT THE FOREFRONT OF THE DIGITAL MUSICAL REVOLUTION MG plays an active role in than 400 digital services world - tributes artists’ music on leading Ufostering the continued de - wide. platforms, while providing UMG velopment of new digital serv - In addition, UMG’s Spinnup, a with a new channel for identify -

R ices for music consumers. I n digital music distribution plat - ing talent around the world. D O

T recent months, it signed form dedicated to sup - Digster was launched globally O H P agreements with a porting aspiring in 2010 by Universal Music Lucian Grainge number of stream - and unsigned Group and swiftly became a Président-Directeur ing players such as Over 400 artists and leading global playlist brand for général d'UMG Pandora, iHeart - agreements musicians, streaming platforms. Universal Frédéric Crépin Media and Ama - in digital became avail - Music France started their serv - WSitehc irtést agireo wgéinngé rnaul mber zon. UMG has able in France ice in 2014 and has garnered of dnee wViv deingditi aelt c hannels, also seized oppor - and Belgium in more than 2.5 million users in Undiev eGrrsoaul pMe uCsainca Gl+ roup tunities in several October 2016 after France, totaling 23 million plays (UMG) has been able emerging markets in cluding launching in Sweden in 2013. per month. Digster Africa has to promote several China, Russia, Brazil and Africa. Also available in a number of marketed playlists via telecom innovative projects. UMG has now licensed more other key markets, Spinnup dis - operators since 2016. I 5

VIVENDI: OFFICIAL PARTNER OF PARIS2024 ivendi is one of the 13 offi -

Vcial partners of Paris 2024, R

E Paris’ bid to host the Olympic

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and Paralympic Games. As the

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A only group from the media and

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© brought various financial, Simon Gillham human and technical resources Chairman of to support this momentous proj - Vivendi Village ect. More specifically, Vivendi is Senior Executive making its expertise in content Vice President, production and distribution Communications available for the city’s bid. It is R D also bringing a vital cultural and creative dimension to it. © Vivendi supports and PARIS 2024 IN THE SHOW “RIO, LE MAGAZINE DES JEUX OLYMPIQUES,” AUGUST 2016 All the Group is a partner in Paris’ bid subsidiaries BETC agency (Havas to host the 2024 Olympic FIFA e-championship, all 32 play - and Head Of - Group) co-produced and Paralympic Games. Support ers posed for a photo to show fice are on the film promoting Support is growing in their support for Paris 2024, board for the from all the the candidacy, all Group activities. demonstrating their commit - project. As subsidiaries #ShareParis. Com - ment to the bid and Olympic an example, six prising Instagram im - values. 30-second sequen- ages bearing the hashtag Vivendi has always been close ces promoting the Olympic “#Paris,” the film shows a to the sports world and the Games and Paris’ 2024 bid were young, dynamic and sports-lov - Olympics. Its teams incorporate broadcast on all Canal+ Group ing city, punctuated with im - many athletes, including Élodie pay and free channels between ages of the capital’s most Clouvel, Silver Medallist in the late June and mid-September beautiful monuments and Modern Pentathlon at the Rio 2016. Paris 2024 will also be buildings Olympics and runner-up to the supported by many programs in World Champion in 2016. In the lead-up to 13 September ÉLODIE CLOUVEL January 2016, the young Cat - 2017, when the host city will be COMING SOON TO CANAL+ alonian joined Canal+ Sports. announced (TPMP, “+” of Infos - On December 20, it was the She will soon be making her ap - port, etc.). Olympia’s turn to salute Paris pearance on Canal+ programs, Last August, Canal+ and the 2024. During the final of France’s hosting sporting activities. I

VIVENDI, PARTNERING WITH PLACEDESACTIONNAIRES.COM On February 1, 2017, the French Federation of Individual Investors and Investment Clubs (F2iC) launched placedesactionnaires.com, the first social network specifically dedicated to individual shareholders and savers, with which Vivendi has associated itself as a partner. This network aims to be THE platform for discussion and information for individual shareholders, savers, listed companies, investment companies, and institutional organization. It will feature financial and product news, tax information, financial and shareholders’ clubs calendars. The network is easy to access and to use, and operates in much the same way as Twitter. Posts may contain a maximum of 140 characters and may be supplemented by photographs. Posts by others can also be shared on one’s network, as can “Likes” and private messages. There are tabs for pricing stock market and for placing orders. In the latter case, the network is linked to 20 financial institutions websites. Shareholders can therefore find information on the financial markets and listed companies in one place while easily accessing their bank account at the same time – a commendable and dynamic initiative! PARTIAL RENEWAL OF THE SHAREHOLDERS’ COMMITTEE The Vivendi Shareholders’ Committee was established in 2009 to serve as a link between individual shareholders and Vi - vendi management. An advisory body, its objective is to promote dialogue and open communication between Vivendi and individual shareholders. More particularly, it helps to:

I Improve the quality of the information and services that Vivendi provides to individual shareholders I Gather in the expeSctimatoion ns, ideas and suggestions of a panel of shareholders concerning their communications and re - lations with VivendiG. illham The Committee has 10 members, each of whom serves for two years (renewable). Five of the 10 members were rotated at the end of last year (the application form is available on the Group’s website in the Individual Shareholders section). All the applicants’ entries were received and examined by Vivendi. In addition to the quality of the applications, the choice of members was dictated by the desire to ensure a balance among genders, regions, ages and professions. All categories of shareholders must be represented on the Committee. Françoise German (Yvelines), Julien Delpierre (Val de Marne), Laurent Dupuy (Côte d’Azur), Jean-Pierre Riou (Pays-de-la- Loire) and Agnès Bongo (Ile-de-France) therefore joined Roland Dumas (Alsace), Francoise Guelle (Rhône), Bruno Lacoste (Gironde), Anne-Lise Lanet (Meurthe-et-Moselle) and Nathalie Ollier (PACA), the latter Committee members since 2014. Two of these members represent the employee shareholders, who hold 3.27% of Vivendi’s capital (as of December 31, 2016). The Committee meets three times per year, and the minutes of its meetings may be viewed on the Group’s website: http://www.vivendi.com/actionnaires-individuels/comite-des-actionnaires/. The meetings begin with a discussion with a Board member and a news update, followed by work on one of the Group’s activities or one of the communication re - sources or events created for individual shareholders (Annual General Meeting, Letter to Shareholders, Shareholders’ Club, social networks, etc.).

’ I PROGRAM FOR THE COMING MONTHS Y S Vivendi organizes numerous events for its Shareholders’ Club. To participate, you must hold at least R R one share. Events include visits, shows, topical meetings and more! Discover our program and sign up! E

A You will find this program of events on our website: www.vivendi.com (click on the “Individual

I shareholders” tab and then on “Shareholders’ Club” ). D L D I CO NTACT US

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filed by Vivendi from the Autorité des Marchés Financiers (www.amf-france.org) or directly from Vivendi. This letter to our shareholders contains forward-looking state - t e l “Audio news” ments that can be assessed only as of the date of its dissemination. Vivendi makes no commitment to supplement, update or alter these forward-looking statements as s a result of new information, future events or any other reason. Unsponsored ADRs. Vivendi does not sponsor American Depositary Receipt (ADR) programs for its shares. i h

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