Regulatory News:
Vivendi (Paris:VIV):
- Revenues increased 14.1% (up 5.6% on a constant basis) due
in particular to the very strong performance of Universal Music
Group (UMG)
- EBITA increased 18.5% (up 10.8% on a constant basis)
supported by:
- another record year for UMG
- the international growth at Canal+
- the strength of the Havas business model
- the success of the Editis integration
- Adjusted net income increased 50.5% to €1.7 billion
- Proposed dividend with respect to 2019 of €0.60 per share
(up 20%)
2019 KEY FIGURES
% change year-on-
year
% change year-on-
year at constant
currency and perimeter1
Revenues
€15,898 M
+14.1%
+5.6%
EBITA2,3
€1,526 M
+18.5%
+10.8%
EBIT3
€1,381 M
+16.9%
Earnings attributable to Vivendi SA
shareowners3
€1,583 M
x12.5
Adjusted net income2,3
€1,741 M
+50.5%
This press release contains audited consolidated financial
figures established under IFRS, which were approved by Vivendi’s
Management Board on February 10, 2020, reviewed by the Vivendi
Audit Committee on February 11, 2020, and by Vivendi’s Supervisory
Board on February 13, 2020 under the chairmanship of Yannick
Bolloré.
________________________
1 Constant perimeter notably reflects the impacts of the
acquisition of M7 by Canal+ Group (September 12, 2019), the
acquisition of the remaining interest in Ingrooves Music Group,
which has been consolidated by Universal Music Group (March 15,
2019), the acquisition of Editis (January 31, 2019), the
acquisition of Paylogic by Vivendi Village (April 16, 2018) and the
sale of MyBestPro by Vivendi Village (December 21, 2018). 2
Non-GAAP measures. 3 A reconciliation of EBIT to EBITA, as well as
a reconciliation of earnings attributable to Vivendi SA shareowners
to adjusted net income, are presented in Appendix II.
In 2019, revenues were €15,898 million, compared to
€13,932 million in 2018, up 14.1%, mainly as a result of the growth
of Universal Music Group (UMG), Canal+ Group and the consolidation
of Editis since
February 1, 2019. At constant currency and perimeter1, revenues
increased by 5.6% compared to 2018, primarily driven by the growth
of UMG (+14.0%).
For the fourth quarter of 2019, revenues were
€4,575 million, up 12.8%, mainly as a result of the growth of UMG,
Canal+ Group and the consolidation of Editis. At constant currency
and perimeter1, revenues increased by 2.4% compared to the fourth
quarter of 2018, which was primarily driven by the growth of UMG
(+6.3%).
EBITA was €1,526 million, up 18.5%. At constant currency
and perimeter, EBITA increased by 10.8%, primarily driven by the
growth of UMG, partially offset by the decline of Canal+ Group,
primarily due to restructuring charges.
EBITA included restructuring charges of €161 million,
compared to €115 million in 2018, primarily incurred by Canal+
Group (€92 million linked in particular to the plan to transform
its French operations implemented during the second half of 2019,
compared to €28 million in 2018), Havas Group (€35 million,
compared to €30 million in 2018), UMG (€24 million, compared to €29
million in 2018) and Corporate (€2 million, compared to €19 million
in 2018).
EBIT was €1,381 million, up 16.9% compared to 2018.
Provision for income taxes reported to net income was a
net income of €140 million, compared to a net charge of €357
million in 2018. In 2019, it included a current tax income of €473
million recorded following the favorable decision issued by the
French Council of State (Conseil d’Etat) on December 19, 2019,
concerning the use of foreign tax receivables upon the exit from
the Consolidated Global Profit Tax System with respect to fiscal
years 2012 and 2015. Excluding this impact, provision for income
taxes reported to net income was a net charge of €333 million,
representing a favorable change of €24 million.
Earnings attributable to Vivendi SA shareowners was a
profit of €1,583 million (or €1.28 per share - basic), compared to
€127 million in 2018 (or €0.10 per share - basic), an increase of
€1,456 million. This change reflected in particular the increase in
EBIT (+€199 million), the improvement in other financial charges
and income (+€828 million due to the write-down in 2018 of the
value of the Telecom Italia shares for €1,066 million), and the
current tax income of €473 million mentioned above.
Adjusted net income was a profit of €1,741 million (€1.41
per share - basic), compared to €1,157 million in 2018 (€0.92 per
share - basic), an increase of 50.5%. This change mainly reflected
the increase in EBITA of €238 million and the current tax income of
€473 million.
As of December 31, 2019, Vivendi's Financial Net
Debt was €4.1 billion, compared to a Net cash position of €176
million as of December 31, 2018. This change was due to the
acquisition of Editis (€829 million) and M7 (€1.136 billion) as
well as share repurchases (€2.66 billion) and the dividend payment
(€636 million). The financial net debt to equity ratio (gearing)
was 26%.
Evolution of UMG’s share capital
On December 31, 2019, Vivendi entered into an agreement with a
Tencent-led consortium, which includes Tencent Music Entertainment
and international financial investors, for the planned equity
investment in UMG. This agreement provides for the purchase by the
consortium of 10% of UMG's share capital, based on an enterprise
value of €30 billion for 100% of UMG's share capital.
The Consortium has the option to acquire, on the same price
basis, an additional amount of up to 10% of UMG’s share capital
until January 15, 2021.
This agreement will be shortly complemented by a second
agreement allowing Tencent Music Entertainment to acquire a
minority interest in the share capital of UMG’s subsidiary that
houses its operations in Greater China.
The merger control approvals, to which this transaction was
subject, have been obtained from the relevant regulatory
authorities. The closing of the transaction is expected by the end
of the first half of 2020.
Vivendi is very happy with the arrival of Tencent and its
co-investors. It will enable UMG to further develop in the Asian
market.
In addition, Vivendi's Supervisory Board was informed of ongoing
negotiations regarding the possible sale of additional minority
interests, which negotiation engagement, based on a minimum
valuation of €30 billion, was announced on December 31, 2019. Eight
banks have been mandated by Vivendi to assist it in this matter. An
initial public offering is currently planned for early 2023 at the
latest.
The proceeds from these different operations could be used for
substantial share buyback operations and acquisitions.
Returns to shareholders
Over the past 14 months, Vivendi has returned a total of €3.5
billion to its shareholders, including €3.3 billion paid in 2019
(compared to a return of €568 million in the form of dividends in
2018), as follows:
- Between May 28, 2019, and February 4, 2020, Vivendi repurchased
115.9 million of its own shares for €2.9 billion (including 108
million shares repurchased in 2019 for €2.66 billion), representing
8.85% of the share capital as of the date of implementation of the
program;
- In 2019, Vivendi canceled a total of 130.9 million shares,
i.e.10% of the share capital as of the date of implementation of
the program, of which 96.8 million shares were repurchased under
the current program and 34.1 million shares were previously held;
and
- In April 2019, Vivendi distributed a total of €636 million in
dividends.
Pursuit of the current share buyback program
As of February 13, 2020, Vivendi directly held 22 million
treasury shares, i.e. 1.85% of the share capital as of that date,
of which 19.1 million shares designated for cancellation and 2.9
million shares were allocated to covering performance share
plans.
This program will continue until April 17, 2020 for the
remainder of its authorization, i.e. 15 million shares to be
purchased at a maximum price of €25/share.
General Shareholders’ Meeting on April 20, 2020
The General Shareholders’ Meeting to be held on April 20, 2020
will vote on the renewal of the following two authorizations
granted to the Management Board by the General Shareholders'
Meeting held on April 15, 2019:
- Authorization to repurchase shares of the company at a maximum
price of €26/share, within the limit of 10% of the share capital
(2020-2021 program); with the possibility of cancelling the shares
acquired up to the limit of 10% of the share capital; and
- Authorization to purchase shares of the company by way of a
Public Share Buyback Offer (OPRA) at a maximum price of €26/share,
within the limit of 30% of the share capital (or 20% depending on
the repurchases made under the new program which are deducted from
this 30% limit), and to cancel the shares acquired.
This General Shareholder’s Meeting will also vote on the
proposal for an ordinary dividend of €0.60 per share with respect
to the 2019 fiscal year. This amount represents an increase of 20%
over the dividend paid with respect to fiscal year 2018 (€0.50 per
share) and a yield of 2.4% (based on the average price for Vivendi
shares over the last 12 months). The ex-dividend date would be
April 21, 2020, with payment on April 23, 2020.
The renewal of Yannick Bolloré and the appointment of Laurent
Dassault to the Supervisory Board will also be proposed to
Shareholders.
Diversity
The Supervisory Board considers that gender diversity, and
diversity in general, at senior management level is of the utmost
importance. This process is already well in place within the
Group’s main businesses, in particular with the increasing presence
of women in each Executive Committee. The appointment of a female
member at Vivendi Management Board level is planned before the end
of 2020, and a second one in 2021.
Comments on the Businesses Key
Financials
Universal Music Group
In 2019, Universal Music Group’s (UMG) revenues were €7,159
million, up 14.0% at constant currency and perimeter compared to
2018 (up 18.9% on an actual basis).
Recorded music revenues grew by 11.6% at constant currency and
perimeter thanks to the growth in subscription and streaming
revenues (+21.5%) and the release driven improvement in physical
sales (+3.1%), which more than offset the continued decline in
download sales (-23.2%).
Recorded music best sellers for 2019 included new releases from
Billie Eilish, Post Malone, Taylor Swift, Ariana Grande and the
Japanese band King & Prince, as well as continued sales of the
soundtrack from A Star Is Born, The Beatles 50th anniversary
release of Abbey Road and multiple albums from Queen.
In 2019, UMG had an artist at the top of five major platforms
(Amazon, Apple, Deezer, Spotify and YouTube), and for each
platform, a different top artist (Taylor Swift, Billie Eilish, J
Balvin, Post Malone, Daddy Yankee). In addition, according to
Billboard, UMG had seven of the Top 10 singles and albums in the
United States for 2019 and the top three artists (Post Malone,
Ariana Grande and Billie Eilish).
Music publishing revenues grew by 9.2% at constant currency and
perimeter compared to 2018, also driven by increased subscription
and streaming revenues.
On February 6, 2020, Taylor Swift, one of the music industry’s
most creatively and commercially successful artist-songwriters in
history, signed an exclusive global publishing agreement with
Universal Music Publishing Group.
Merchandising and other revenues were up 73.7% at constant
currency and perimeter compared to 2018, thanks to increased
touring activity and growth in retail and D2C (direct-to-consumer)
revenues.
Driven by the growth in revenues, UMG’s EBITA was €1,124
million, up 22.3% at constant currency and perimeter compared to
2018 (+24.6% on an actual basis).
Canal+ Group
At the end of December 2019, the total subscriber portfolio
(individual and collective) of Canal+ Group's, which now includes
M7’s operations, reached 20.3 million, compared to 17.2 million at
the end of December 2018 on a pro forma basis, including 8.4
million in mainland France.
In 2019, Canal+ Group's revenues were €5,268 million, up 2.0%
compared to 2018 (down 0.9% at constant currency and
perimeter).
- Revenues from television operations in mainland France fell
slightly (down 2.8% at constant currency and perimeter) due to the
decline in the self-distributed individual subscriber base.
However, the Canal+ subscriber base recorded a net increase in
subscribers of 72,000 over the past 12 months.
- Revenues from international operations grew strongly by 13.7%
(up 6.1% at constant currency and perimeter) driven both by organic
growth and the integration of M7.
- Studiocanal's revenues were €434 million, reflecting a
year-on-year decrease of 12.8% at constant currency and perimeter
due to fewer theatrical releases compared to 2018.
EBITA before restructuring charges was €435 million, compared to
€428 million in 2018. EBITA after restructuring charges amounted to
€343 million, compared to €400 million in 2018.
In the fourth quarter of 2019, several important agreements
involving the operations in France were announced, including with
Netflix, UEFA for the Champions League, The Walt Disney Company (in
particular for the marketing of Disney+) and BeIN Sports, the
latter agreement allowing Canal+ to broadcast two matches of Ligue
1 per championship day starting with the upcoming 2020/2021 season.
In January 2020, Canal+ Group extended its agreement with Formula
One Management to remain the exclusive broadcaster for all of the
next three seasons of Formula 1.
Havas Group
Havas Group’s revenues for 2019 were €2,378 million, up 2.6%
(down 1.0% at constant currency and perimeter) compared to 2018.
Net revenues4 increased by 2.8% to €2,256 million. Acquisitions
contributed +1.3% and exchange rates had a positive impact of 2.5%.
Organic growth was down 1.0% compared to 2018.
In a contrasting sector environment, particularly in Europe,
Havas Group’s performance was supported by the media business
thanks to the new Meaningful Media approach launched at the
beginning of 2019. Strong performances were delivered by the
healthcare communications business and the creative pure players
(BETC, Rosapark, Edge), while the general network moved
purposefully ahead with its transformation in order to adapt itself
to evolving client needs.
Havas Group accelerated its financial investments in the second
half of the year, making four acquisitions of strategic importance
in terms of geographic expansion and strengthening its expertise:
Buzzman in France, Langoor and Shobiz in India, and Gate One in the
United Kingdom.
In 2019, Havas Group continued its worldwide development,
winning new clients both locally and globally. In addition, Havas
Group agencies were lavishly awarded in 2019. The Group was named
“Most Sustainable Company in the Communication Industry” by World
Finance magazine in November 2019, and BETC was named
“International Agency of the Year 2019” by Adweek. For a list of
the most significant Havas Group awards and wins in 2019, please
see Appendix VI.
Havas Group consolidated its profitability. EBITA before
restructuring charges was €260 million, up 6.1% compared to 2018.
After restructuring charges, EBITA was €225 million, up 4.5%. Its
EBITA/net revenues margin thus gained an additional 0.2 points.
__________________________
4 Net revenues correspond to revenues less pass-through costs
rebilled to customers.
Editis
Vivendi has fully consolidated Editis since February 1, 2019.
Editis’ contribution to Vivendi’s revenues was €687 million for
eleven months, up 6.3% on a proforma basis at constant currency and
perimeter compared to the same period in 2018.
Since February 1, 2019, Education & Reference revenues have
risen sharply (up 16.8%). Thanks to the reform of high school
curricula in France, Editis reinforced its leading position in
textbook publishing with its strong French brands, Nathan, Bordas
and Le Robert.
Literature continues to grow (up 2.0% on an eleven-month
proforma basis). Editis confirms its leading position in this
segment with 6 authors in the top 10 of the best-selling authors in
France in 2019 and also leads many other segments: N°1 in
thrillers, History, youtubers and influencers, and N°2 in youth,
leisure / practical life and tourism (GfK 2019).
Diffusion & Distribution revenues related to third-party
publishers are also increased (up 4.2% on eleven-month pro forma),
driven in particular by the distribution of the Goncourt Prize,
Tous les hommes n’habitent pas le monde de la même façon from
Jean-Paul Dubois (L’Olivier).
In the second half of 2019, Editis continued its external growth
policy with Robert Laffont’s acquisition of the publishing houses
Seguier, Nathan’s purchase of the publishing houses L’Agrume and
the publishing house Le Retz’s acquisition of l’Ecole Vivante, as
well as the purchase in July 2019 of the l’Archipel publishing
group which specializes in literature and essays.
In August 2019, Editis also entered the graphic novel and comic
book segments following an agreement concluded with Jungle
Publishing (a subsidiary of the Steinkis group).
Editis’ EBITA was €52 million since February 1, 2019, up 46.9%
proforma compared to the same period in 2018, thanks to the
increase in revenues and cost control.
Other businesses
Gameloft
With 1.5 million downloads per day across all platforms during
2019, Gameloft is one of the world’s leading video game
publishers.
In 2019, Gameloft's revenues were €259 million, down 11.8%
year-on-year. Gameloft’s sales on OTT platforms, representing 72%
of Gameloft’s total sales, declined by 11.1%. The postponement to
2020 of three major games initially scheduled for release in the
second half of 2019 and the saturation of the mobile gaming segment
largely explain the lower OTT revenues in 2019. The advertising
business, representing 11.6% of Gameloft’s total revenues, was up
4.8%.
65% of Gameloft’s revenues were generated by its own gaming
franchises and 35% by the franchises of major international groups
such as Disney or Lego. For Disney, Gameloft released Disney
Princess Majestic Quest in October 2019 and Disney Getaway Blast at
the end of January 2020. For Lego, it will release LEGO Legacy:
Heroes Unboxed in March 2020.
Gameloft is developing its presence on all platforms and has
released two games on Nintendo Switch: Modern Combat Blackout and
Asphalt 9: Legends.
The recent subscription-based game distribution model provides
another growth avenue for Gameloft. It developed Ballistic
Baseball, one of the first games included on Apple Arcade, Apple’s
new game subscription service. It also launched a cloud gaming
service, in partnership with Blacknut, which offers operators and
manufacturers a new range of cross-platform games streamed from the
cloud.
In 2019, the decrease in fixed costs only partially offset the
decline in revenues and higher marketing investments. Gameloft’s
EBITA was -€36 million.
Vivendi Village
In 2019, Vivendi Village’s revenues were €141 million, a
significant increase of 38.9% at constant currency and perimeter
(14.6% on an actual basis) compared to 2018.
This growth is mostly attributable to the development of the
live activities in France and Great-Britain, as well as the venues
in France and Africa. Their revenues nearly doubled in a year
(x1.9), reaching €68 million. This change resulted in particular
from the organic growth of the concert and show promotion business,
which currently manages some 75 artists. It is also due to
acquisitions, notably Garorock in France, which attracted 160,000
festival-goers in 2019.
In addition, Olympia Production formed a joint venture with OL
Groupe to produce the Felyn Stadium Festival in Lyons in June
2020.
L’Olympia in Paris enjoyed a record year with slightly over 300
shows. Three new CanalOlympia venues were inaugurated in Africa in
2019 (14 in total in ten countries).
The ticketing businesses, united under the See Tickets brand,
generated revenues of €66 million (up 14.4% compared to 2018 and up
6.5% at constant currency and perimeter). This growth is partly
attributable to the development of the operations in the US, where
revenue has almost doubled in one year. With the acquisition of
Starticket in Switzerland on December 30, 2019, See Tickets is now
present in nine European countries and in the United States,
selling about 30 million tickets annually (25 million in 2019).
Vivendi Village’s EBITA was a loss of €17 million, compared to a
loss of €9 million in 2018. Excluding the investments in Africa,
EBITA was mostly at break-even.
New Initiatives
In 2019, New Initiatives, which brings together entities in the
launch or development phase, recorded revenues of €71 million, up
6.2% compared to 2018 (up 9.3% at constant currency and
perimeter).
GVA continued to roll out its fiber network in Africa in order
to provide its customers with very high-speed internet access.
After Libreville and Lomé, GVA experienced further development in
2019, in Pointe Noire (Republic of Congo).
In 2019, GVA provided more than 25,000 subscribers in the three
cities where the company is established.
Dailymotion entered into over 280 agreements with leading global
publishers in 2019, including 70 in the United States and dozens in
territories where the company had little presence (Indonesia,
Taiwan, Mexico). The audience in these new countries has increased
significantly. At the end of 2019, the premium content audience
represented more than 70% of its global audience, compared to less
than 30% in 2017, and its total monthly users increased by 20% in
two years to exceed 350 million at the end of 2019.
In 2019, Dailymotion also completed the overhaul of its
advertising ecosystem. It created a proprietary programmatic
platform and a content monetization system (live or
programmatic).
New Initiatives' EBITA was a loss of €65 million, compared to a
loss of €99 million in 2018.
For additional information, please refer to the “Financial
Report and Audited Consolidated Financial Statements for the year
ended December 31, 2019” released later on Vivendi’s website
(www.vivendi.com).
About Vivendi
Since 2014, Vivendi has been focused on building a world-class
content, media and communications group with European roots. In
content creation, Vivendi owns powerful, complementary assets in
music (Universal Music Group), movies and series (Canal+ Group),
publishing (Editis) and video games (Gameloft) which are the most
popular forms of entertainment content in the world today. In the
distribution market, Vivendi has acquired the Dailymotion platform
and repositioned it to create a new digital showcase for its
content. The Group has also joined forces with several telecom
operators and platforms to maximize the reach of its distribution
networks. In communications, through Havas, the Group possesses
unique creative expertise in promoting free content and producing
short formats, which are increasingly viewed on mobile devices. In
addition, through Vivendi Village, the Group explores new
commercial activities in live entertainment, franchises and
ticketing that are complementary to its core activities. Vivendi’s
various businesses cohesively work together as an integrated
industrial group to create greater value. www.vivendi.com
Important Disclaimers
Cautionary Note Regarding Forward-Looking Statements. This press
release contains forward-looking statements with respect to
Vivendi’s financial condition, results of operations, business,
strategy, plans and outlook, including the impact of certain
transactions and the payment of dividends and distributions, as
well as share repurchases. Although Vivendi believes that such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance. Actual
results may differ materially from the forward-looking statements
as a result of a number of risks and uncertainties, many of which
are outside our control, including, but not limited to, the risks
related to antitrust and other regulatory approvals as well as any
other approvals which may be required in connection with certain
transactions and the risks described in the documents of the Group
filed by Vivendi with the Autorité des Marchés Financiers (the
French securities regulator), which are also available in English
on Vivendi's website (www.vivendi.com). Investors and security
holders may obtain a free copy of documents filed by Vivendi with
the Autorité des Marchés Financiers at www.amf-france.org, or
directly from Vivendi. Accordingly, we caution readers against
relying on such forward-looking statements. These forward-looking
statements are made as of the date of this press release. Vivendi
disclaims any intention or obligation to provide, update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Unsponsored ADRs. Vivendi does not sponsor an American
Depositary Receipt (ADR) facility in respect of its shares. Any ADR
facility currently in existence is “unsponsored” and has no ties
whatsoever to Vivendi. Vivendi disclaims any liability in respect
of any such facility.
ANALYST CONFERENCE CALL
Speakers:
Arnaud de Puyfontaine
Chief Executive Officer
Hervé Philippe
Member of the Management Board and Chief Financial Officer
Date: February 13, 2020 6:15pm Paris time – 5:15pm London
time – 12:15pm New York time
Media invited on a listen-only basis.
The conference will be held in English.
Internet: The conference can be followed on the Internet
at: www.vivendi.com (audiocast)
Numbers to dial:
- USA : +1 212 999 6659 - France : +33 (0) 1
7099 4740 - UK (Standard international access) : +44 (0) 20 3003
2666
- Password: Vivendi
An audio webcast and the slides of the presentation will be
available on the company’s website www.vivendi.com.
APPENDIX I
VIVENDI
OPERATING RESULTS BY BUSINESS
SEGMENT
(IFRS, audited)
Revenues, Income from operations and EBITA by business
segment
Year ended December 31,
(in millions of euros)
2019
2018
% Change
% Change at
constant currency
% Change at
constant currency
and perimeter (a)
Revenues
Universal Music Group
7,159
6,023
+18.9%
+15.6%
+14.0%
Canal+ Group
5,268
5,166
+2.0%
+2.0%
-0.9%
Havas Group
2,378
2,319
+2.6%
+0.2%
-1.0%
Editis
687
-
na
na
na
Gameloft
259
293
-11.8%
-13.6%
-16.0%
Vivendi Village
141
123
+14.6%
+14.2%
+38.9%
New Initiatives
71
66
+6.2%
+6.2%
+9.3%
Elimination of intersegment
transactions
(65)
(58)
Total Vivendi
15,898
13,932
+14.1%
+12.2%
+5.6%
Income from operations
Universal Music Group
1,168
946
+23.5%
+20.6%
+21.1%
Canal+ Group
431
429
+0.3%
+0.2%
-5.2%
Havas Group
268
258
+3.9%
+2.4%
+0.6%
Editis
59
-
na
na
na
Gameloft
(28)
4
Vivendi Village
(16)
(9)
New Initiatives
(68)
(79)
Corporate
(95)
(110)
Total Vivendi
1,719
1,439
+19.5%
+17.3%
+11.7%
EBITA
Universal Music Group
1,124
902
+24.6%
+21.8%
+22.3%
Canal+ Group
343
400
-14.3%
-14.3%
-19.3%
Havas Group
225
215
+4.5%
+2.7%
+0.5%
Editis
52
-
na
na
na
Gameloft
(36)
2
Vivendi Village
(17)
(9)
New Initiatives
(65)
(99)
Corporate
(100)
(123)
Total Vivendi
1,526
1,288
+18.5%
+16.2%
+10.8%
- Constant perimeter notably reflects the impacts of the
acquisition of M7 by Canal+ Group (September 12, 2019), the
acquisition of the remaining interest in Ingrooves Music Group,
which has been consolidated by Universal Music Group (March 15,
2019), the acquisition of Editis (January 31, 2019), the
acquisition of Paylogic by Vivendi Village (April 16, 2018) and the
sale of MyBestPro by Vivendi Village (December 21, 2018).
APPENDIX I (Cont’d)
VIVENDI
OPERATING RESULTS BY BUSINESS
SEGMENT
(IFRS, audited)
Quarterly revenues by business segment
2019
(in millions of euros)
Three months ended
March 31,
Three months ended
June 30,
Three months ended
September 30,
Three months ended
December 31,
Revenues
Universal Music Group
1,502
1,756
1,800
2,101
Canal+ Group
1,252
1,266
1,285
1,465
Havas Group
525
589
567
698
Editis (a)
89
171
210
217
Gameloft
68
65
61
65
Vivendi Village
23
43
42
33
New Initiatives
15
19
16
20
Elimination of intersegment
transactions
(15)
(15)
(11)
(24)
Total Vivendi
3,459
3,894
3,970
4,575
2018
(in millions of euros)
Three months ended
March 31,
Three months ended
June 30,
Three months ended
September 30,
Three months ended
December 31,
Revenues
Universal Music Group
1,222
1,406
1,495
1,900
Canal+ Group
1,298
1,277
1,247
1,344
Havas Group
506
567
553
693
Gameloft
70
71
74
78
Vivendi Village
23
29
36
35
New Initiatives
16
16
15
19
Elimination of intersegment
transactions
(11)
(14)
(19)
(14)
Total Vivendi
3,124
3,352
3,401
4,055
- As a reminder, Vivendi has fully consolidated Editis since
February 1, 2019.
APPENDIX II
VIVENDI
CONSOLIDATED STATEMENT OF EARNINGS
(IFRS, audited)
Year ended December 31
Year ended December 31,
% Change
2019
2018
REVENUES
15,898
13,932
+ 14.1%
Cost of revenues
(8,845)
(7,618)
Selling, general and administrative
expenses excluding amortization of intangible assets acquired
through business combinations
(5,334)
(4,875)
Income from operations*
1,719
1,439
+ 19.5%
Restructuring charges
(161)
(115)
Other operating charges and income
(32)
(36)
Adjusted earnings before interest and
income taxes (EBITA)*
1,526
1,288
+ 18.5%
Amortization and depreciation of
intangible assets acquired through business combinations
(145)
(113)
Other charges and income
-
7
EARNINGS BEFORE INTEREST AND INCOME
TAXES (EBIT)
1,381
1,182
+ 16.9%
Income from equity affiliates -
non-operational
67
122
Interest
(46)
(47)
Income from investments
10
20
Other financial charges and income
65
(763)
29
(790)
Earnings before provision for income
taxes
1,477
514
x 2.9
Provision for income taxes
140
(357)
Earnings from continuing
operations
1,617
157
x 10.3
Earnings from discontinued operations
-
-
Earnings
1,617
157
x 10.3
Non-controlling interests
(34)
(30)
EARNINGS ATTRIBUTABLE TO VIVENDI SA
SHAREOWNERS
1,583
127
x 12.5
Earnings attributable to Vivendi SA
shareowners per share - basic (in euros)
1.28
0.10
Earnings attributable to Vivendi SA
shareowners per share - diluted (in euros)
1.28
0.10
Adjusted net income*
1,741
1,157
+ 50.5%
Adjusted net income per share - basic (in
euros)*
1.41
0.92
Adjusted net income per share - diluted
(in euros)*
1.41
0.91
In millions of euros, except per share amounts.
* non-GAAP measures.
The non-GAAP measures of “Income from operations”, “adjusted
earnings before interest and income taxes (EBITA)” and “adjusted
net income” should be considered in addition to, and not as a
substitute for, other GAAP measures of operating and financial
performance. Vivendi considers these to be relevant indicators of
the group’s operating and financial performance. Vivendi Management
uses income from operations, EBITA and adjusted net income for
reporting, management and planning purposes because they exclude
most non-recurring and non-operating items from the measurement of
the business segments’ performances.
For any additional information, please refer to the “Financial
Report and Audited Consolidated Financial Statements for the year
ended December 31, 2019“, which will be released online later on
Vivendi’s website (www.vivendi.com).
APPENDIX II (Cont’d)
VIVENDI
CONSOLIDATED STATEMENT OF EARNINGS
(IFRS, audited)
Reconciliation of earnings attributable to Vivendi SA
shareowners to adjusted net income
Year ended December 31,
(in millions of euros)
2019
2018
Earnings attributable to Vivendi SA
shareowners (a)
1,583
127
Adjustments
Amortization and depreciation of
intangible assets acquired through business combinations
145
113
Amortization of intangible assets related
to equity affiliates
60
60
Other financial charges and income
(65)
763
Provision for income taxes on
adjustments
37
104
Impact of adjustments on non-controlling
interests
(19)
(10)
Adjusted net income
1,741
1,157
- As reported in the Consolidated Statement of Earnings.
Adjusted Statement of Earnings
Year ended December 31,
% Change
(in millions of euros)
2019
2018
Revenues
15,898
13,932
+ 14.1%
Income from operations
1,719
1,439
+ 19.5%
EBITA
1,526
1,288
+ 18.5%
Other charges and income
-
7
Income from equity affiliates -
non-operational
127
182
Interest
(46)
(47)
Income from investments
10
20
Adjusted earnings from continuing
operations before provision for income taxes
1,617
1,450
+ 11.5%
Provision for income taxes
177
(253)
Adjusted net income before non-controlling
interests
1,794
1,197
Non-controlling interests
(53)
(40)
Adjusted net income
1,741
1,157
+ 50.5%
APPENDIX III
VIVENDI
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
(IFRS, audited)
(in millions of euros)
December 31, 2019
January 1, 2019
December 31, 2018
ASSETS
Goodwill
14,690
12,438
12,438
Non-current content assets
2,746
2,194
2,194
Other intangible assets
883
437
437
Property, plant and equipment
1,097
967
986
Rights-of-use relating to leases
1,245
1,131
na
Investments in equity affiliates
3,520
3,418
3,418
Non-current financial assets
2,263
2,102
2,102
Deferred tax assets
782
713
675
Non-current assets
27,226
23,400
22,250
Inventories
277
206
206
Current tax receivables
374
135
135
Current content assets
1,423
1,346
1,346
Trade accounts receivable and other
5,661
5,311
5,314
Current financial assets
255
1,090
1,090
Cash and cash equivalents
2,130
3,793
3,793
Current assets
10,120
11,881
11,884
TOTAL ASSETS
37,346
35,281
34,134
EQUITY AND LIABILITIES
Share capital
6,515
7,184
7,184
Additional paid-in capital
2,353
4,475
4,475
Treasury shares
(694)
(649)
(649)
Retained earnings and other
7,179
6,182
6,303
Vivendi SA shareowners' equity
15,353
17,192
17,313
Non-controlling interests
222
220
221
Total equity
15,575
17,412
17,534
Non-current provisions
1,127
871
858
Long-term borrowings and other financial
liabilities
5,160
3,448
3,448
Deferred tax liabilities
1,037
1,076
1,076
Long-term lease liabilities
1,223
1,122
na
Other non-current liabilities
183
223
248
Non-current liabilities
8,730
6,740
5,630
Current provisions
494
419
419
Short-term borrowings and other financial
liabilities
1,777
888
888
Trade accounts payable and other
10,494
9,513
9,572
Short-term lease liabilities
236
218
na
Current tax payables
40
91
91
Current liabilities
13,041
11,129
10,970
Total liabilities
21,771
17,869
16,600
TOTAL EQUITY AND LIABILITIES
37,346
35,281
34,134
na: not applicable.
Nota: As from January 1, 2019, Vivendi applies the new
accounting standard IFRS 16 – Leases.
APPENDIX IV
VIVENDI
CONSOLIDATED STATEMENT OF CSH FLOWS
(IFRS, audited)
Year ended December 31,
(in millions of euros)
2019
2018
Operating activities
EBIT
1,381
1,182
Adjustments
779
432
Content investments, net
(676)
(137)
Gross cash provided by operating
activities before income tax paid
1,484
1,477
Other changes in net working capital
67
(28)
Net cash provided by operating
activities before income tax paid
1,551
1,449
Income tax (paid)/received, net
(283)
(262)
Net cash provided by operating
activities
1,268
1,187
Investing activities
Capital expenditures
(413)
(351)
Purchases of consolidated companies, after
acquired cash
(2,106)
(116)
Investments in equity affiliates
(1)
(3)
Increase in financial assets
(177)
(575)
Investments
(2,697)
(1,045)
Proceeds from sales of property, plant,
equipment and intangible assets
8
10
Proceeds from sales of consolidated
companies, after divested cash
22
16
Disposal of equity affiliates
-
2
Decrease in financial assets
1,046
2,285
Divestitures
1,076
2,313
Dividends received from equity
affiliates
8
5
Dividends received from unconsolidated
companies
3
13
Net cash provided by/(used for)
investing activities
(1,610)
1,286
Financing activities
Net proceeds from issuance of common
shares in connection with Vivendi SA's share-based compensation
plans
175
190
Sales/(purchases) of Vivendi SA's treasury
shares
(2,673)
-
Distributions to Vivendi SA's
shareowners
(636)
(568)
Other transactions with shareowners
(13)
(16)
Dividends paid by consolidated companies
to their non-controlling interests
(41)
(47)
Transactions with shareowners
(3,188)
(441)
Setting up of long-term borrowings and
increase in other long-term financial liabilities
2,101
4
Principal payment on long-term borrowings
and decrease in other long-term financial liabilities
(6)
(3)
Principal payment on short-term
borrowings
(787)
(193)
Other changes in short-term borrowings and
other financial liabilities
870
65
Interest paid, net
(46)
(47)
Other cash items related to financial
activities
(7)
5
Transactions on borrowings and other
financial liabilities
2,125
(169)
Repayment of lease liabilities and related
interest expenses
(254)
na
Net cash provided by/(used for)
financing activities
(1,317)
(610)
Foreign currency translation adjustments
of continuing operations
(4)
(21)
Change in cash and cash
equivalents
(1,663)
1,842
Cash and cash equivalents
At beginning of the period
3,793
1,951
At end of the period
2,130
3,793
na: not applicable.
APPENDIX V
VIVENDI
KEY CONSOLIDATED FINANCIAL DATA FOR THE LAST
FIVE YEARS
(IFRS, audited)
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 standard was recorded in the opening
balance sheet as of January 1, 2019. Moreover, Vivendi applied this
change of accounting standard to the Statement of Financial
Position, Statement of Earnings and Statement of Cash Flows in
2019; therefore, the data relative to prior years is not
comparable.
As a reminder, in 2018, Vivendi applied two new accounting
standards:
- IFRS 15 – Revenues from Contracts with Customers: in accordance
with IFRS 15, as from 2017, Vivendi applied this change of
accounting standard to revenues. The data presented below with
respect to fiscal years 2015 to 2016 are historical and therefore
unrestated; and
- IFRS 9 – Financial Instruments: in accordance with IFRS 9, as
from 2018, Vivendi applied this change of accounting standard to
the Statement of Earnings and Statement of Comprehensive Income
restating its opening balance sheet as of January 1, 2018;
therefore, the data relative to prior years in this report is not
comparable.
In addition, Vivendi deconsolidated GVT as from May 28, 2015,
the date of its effective sale by Vivendi. In compliance with IFRS
5, this business was reported as a discontinued operation for 2015
as set out in the table of selected key consolidated financial data
below in respect of data reflected in the Statement of Earnings and
Statement of Cash Flows.
Year ended December 31,
2019
2018
2017
2016
2015
Consolidated
data
Revenues
15,898
13,932
12,518
10,819
10,762
Income from operations (a)
1,719
1,439
1,098
853
1,061
Adjusted earnings before interest and
income taxes (EBITA) (a)
1,526
1,288
969
724
942
Earnings before interest and income taxes
(EBIT)
1,381
1,182
1,018
887
521
Earnings attributable to Vivendi SA
shareowners
1,583
127
1,216
1,256
1,932
of which earnings from continuing
operations attributable to Vivendi SA shareowners
1,583
127
1,216
1,236
699
Adjusted net income (a)
1,741
1,157
1,300
755
697
Net Cash Position/(Financial Net Debt)
(a)
(4,064)
176
(2,340)
1,231
7,172
Total equity
15,575
17,534
17,866
19,612
21,086
of which Vivendi SA shareowners'
equity
15,353
17,313
17,644
19,383
20,854
Cash flow from operations (CFFO) (a)
903
1,126
989
729
892
Cash flow from operations after interest
and income tax paid (CFAIT) (a)
567
822
1,346
341
(69)
Financial investments
(2,284)
(694)
(3,685)
(4,084)
(3,927)
Financial divestments
1,068
2,303
976
1,971
9,013
Dividends paid by Vivendi SA to its
shareholders
636
568
499
2,588
(b)
2,727
(b)
Purchases/(sales) of Vivendi SA's treasury
shares
2,673
-
203
1,623
492
Per share
data
Weighted average number of shares
outstanding
1,233.5
1,263.5
1,252.7
1,272.6
1,361.5
Earnings attributable to Vivendi SA
shareowners per share
1.28
0.10
0.97
0.99
1.42
Adjusted net income per share
1.41
0.92
1.04
0.59
0.51
Number of shares outstanding at the end of
the period (excluding treasury shares)
1,170.6
1,268.0
1,256.7
1,259.5
1,342.3
Equity per share, attributable to Vivendi
SA shareowners
13.12
13.65
14.04
15.39
15.54
Dividends per share paid
0.50
0.45
0.40
2.00
(b)
2.00
(b)
In millions of euros, number of shares in millions, data per
share in euros.
- The non-GAAP measures of Income from operations, EBITA,
Adjusted net income, Net Cash Position (or Financial Net Debt),
Cash flow from operations (CFFO) and Cash flow from operations
after interest and income tax paid (CFAIT) should be considered in
addition to, and not as a substitute for, other GAAP measures of
operating and financial performance as presented in the
Consolidated Financial Statements and the related Notes, or as
described in this Financial Report. Vivendi considers these to be
relevant indicators of the group’s operating and financial
performance. Each of these indicators is defined in the appropriate
section of this Financial Report. In addition, it should be noted
that other companies may have definitions and calculations for
these indicators that differ from those used by Vivendi, thereby
affecting comparability.
- With respect to fiscal year 2015, Vivendi paid an ordinary
dividend of €3 per share, i.e., an aggregate dividend payment of
€3,951 million. This amount included €1,363 million paid in 2015
(first interim dividend of €1 per share) and €2,588 million paid in
2016 (€1,318 million for the second interim dividend of €1 per
share and €1,270 million representing the balance of €1 per share).
In addition, in 2015, Vivendi paid a dividend with respect to
fiscal year 2014 of €1 per share, i.e., €1,364 million.
APPENDIX VI
VIVENDI
HAVAS GROUP: SIGNIFICANT AWARDS AND
WINS
Havas continued its worldwide development in 2019, winning
prestigious new clients and brands in creation, media and
healthcare at both local and global levels.
In creation, Havas signed new local contracts with Boston Beers,
Gap, Lacoste and Core Water in the United States, Huawei, Lloyds
and Compare the Market in the United Kingdom, COOP in Italy and 7TV
and Ferrerro in Germany. Globally, Havas Creative won contracts
with Pimco, Michelin and Bel.
In media, South Korean car manufacturers Hyundai Kia re-selected
Havas Media to handle its media mandate for Europe, Russia and
Turkey. Havas Media has been working with Hyundai Kia for ten
years. Havas Media also won a number of global assignments
including TripAdvisor, Meetic and Visit California. Some multilocal
wins included Continental Foods, Mango, and UPower. Locally, it won
contracts with Sanofi, Planet Fitness and Stop n’ Shop in the
United States, Corby in Canada, Legal & General, Homebase,
Dreams and Starbucks in the United Kingdom, Hassia Group,
Vattenfall and Stepstone in Germany, SFR and GRDF in France,
Carrefour in Belgium, Tinder and Gameskraft in India and Uniqlo in
Singapore.
Havas Health & You had major global and local wins worldwide
with AbbVie, Alcon, Amgen, AstraZeneca, BioMarin, Celgene,
Genentech, Guardant Health, Guidewell, Ipsen, Ironshore,
Klosterfrau, Lundbeck, Merck Inc, Novartis, Takeda, TherapeuticsMD
and Unicef.
View source
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