PARIS--(BUSINESS WIRE)--Regulatory News:
Vivendi (Paris:VIV):
|
2018 KEY FIGURES |
% change year-on-year |
% change year-on-year at constant currency and perimeter2 |
||||
|
Revenues |
€13,932 M |
+11.3% |
+4.9% |
|||
|
Income from operations3,4 |
€1,439 M |
+31.0% |
+22.7% |
|||
|
EBITA3,4 |
€1,288 M |
+33.0% |
+24.7% |
|||
|
EBIT4 |
€1,182 M |
+16.1% |
||||
|
Earnings attributable to Vivendi SA shareowners4 |
€127 M |
NS |
||||
|
Adjusted net income3,4 |
€1,157 M |
-11.1% |
+33.6%1 |
This press release contains audited consolidated financial results established under IFRS, which were approved by Vivendi’s Management Board on February 11, 2019, reviewed by the Vivendi Audit Committee on February 12, 2019, and by Vivendi’s Supervisory Board on February 14, 2019.
1 In 2017, the adjusted net income notably included
a tax income of €409 million following the favorable settlement of the
litigation relating to the Consolidated Global Profit Tax System of 2011.
2
Constant perimeter reflects the impacts of the acquisition of Havas
(July 3, 2017), the acquisition of Paylogic by Vivendi Village (April
16, 2018) and the sale of Radionomy by Vivendi Village (August 17, 2017).
3
Non-GAAP measures.
4 A reconciliation of
EBIT to EBITA and to income from operations, as well as a reconciliation
of earnings attributable to Vivendi SA shareowners to adjusted net
income, are presented in Appendix II.
Vivendi's Supervisory Board met today under the chairmanship of Yannick Bolloré and reviewed the Group’s Consolidated Financial Statements for the year ended December 31, 2018, which were approved by the Management Board on February 11, 2019.
In 2018, Vivendi’s revenues amounted to €13,932 million, compared to €12,518 million in 2017, an increase of 11.3%, notably as a result of the consolidation of Havas (+€1,108 million). At constant currency and perimeter2, Vivendi’s revenues increased by 4.9% compared to 2017. For the second year in a row, Universal Music Group’s (UMG) revenues increased by 10.0% at constant currency and perimeter compared to 2017.
For the second half of 2018, at constant currency and perimeter, Vivendi’s revenues increased by 5.7% compared to the second half of 2017, an improvement compared to the first half of 2018 (+3.9% compared to the first half of 2017), mainly driven by Universal Music Group (+12.8% for the second half, compared to +6.8% for the first half).
For the fourth quarter of 2018, at constant currency and perimeter, Vivendi’s revenue growth was +5.6% compared to the fourth quarter of 2017, as opposed to +3.3% for the first quarter of 2018, +4.6% for the second quarter, and +5.7% for the third quarter.
Income from operations amounted to €1,439 million, compared to €1,098 million in 2017, an increase of 31.0%, notably resulting from the consolidation of Havas (+€123 million). At constant currency and perimeter, income from operations increased by 22.7% driven by the growth of Universal Music Group (+€177 million) and Canal+ Group (+€78 million), which continues its recovery in France.
EBITA amounted to €1,288 million, compared to €969 million in 2017, an increase of 33.0%, notably resulting from the consolidation of Havas (+€104 million). At constant currency and perimeter, EBITA increased by €240 million (+24.7%), driven by the growth of Universal Music Group (+€168 million) and Canal+ Group (+€98 million), which continues its recovery in France.
EBIT amounted to €1,182 million, compared to €1,018 million in 2017, an increase of €164 million.
Income from equity affiliates - non-operational amounted to a profit of €122 million, compared to nil in 2017. In 2018, this amount related to Vivendi’s share of Telecom Italia’s net earnings, calculated based on the financial information publicly disclosed by Telecom Italia5. In 2017, the share of Telecom Italia’s net earnings (€144 million) was recorded as “income from equity affiliates - operational”.
Other financial charges and income were a net charge of €763 million, compared to a net charge of €100 million in 2017.
In 2018, other financial charges included the write-down of the value of the Telecom Italia shares accounted for under the equity method, for €1,066 million. Notwithstanding Vivendi’s expected improvement of Telecom Italia’s outlook, Vivendi wrote-down the value of its interest in Telecom Italia accounted for under the equity method notably to take into account the uncertainty affecting Telecom Italia’s governance, which increases the non-execution risks associated with the company’s industrial plan given Vivendi’s lower power to participate in Telecom Italia’s financial and operating policy decisions, and to take into account the changes in Telecom Italia’s competitive and regulatory environment.
Other financial income included the revaluation between January 1 and December 31, 2018 of the interests in Spotify and Tencent Music for an aggregate amount of €312 million, as well as in Ubisoft for €53 million, reported to profit or loss in accordance with the new accounting standard IFRS 9, applicable since January 1, 2018.
5 On November 8, 2018 (Financial Statements for the first nine months of 2018) and on March 6, 2018 (Financial Statements for the year ended December 31, 2017): please refer to Note 11.2 to the Consolidated Financial Statements for the year ended December 31, 2018.
In 2018, Vivendi realized a capital gain of €1,213 million on the sale of its interest in Ubisoft. Of this amount, only the portion corresponding to the revaluation of such interest in 2018 (€53 million) was recorded in the Statement of Earnings for the year ended December 31, 2018, in accordance with the new IFRS 9 accounting standard, applicable since January 1, 2018. The remaining portion of the capital gain (€1,160 million) related to the revaluation of such interest up until December 31, 2017, was recorded in “charges and income directly recognized in equity” as of December 31, 2017, in accordance with the former IAS 39 accounting standard, and reclassified as retained earnings as of January 1, 2018 as a result of the first-time application of IFRS 9. Under IAS 39, which was applicable up until December 31, 2017, it would have been reported to profit or loss.
Provision for income taxes reported to net income was a net charge of €357 million, compared to a net income of €355 million in 2017. In 2017, the net income included favorable non-recurring tax impact of €652 million, comprised of a current tax income of €409 million recorded following the litigation relating to the Consolidated Global Profit Tax System of 2011, where Vivendi SA secured a favorable settlement, as well as a current tax income of €243 million corresponding to the refund to Vivendi SA and to its subsidiaries of the amounts paid under the 3% tax on dividend distributions. In addition, in 2018, the increase in the provision for income taxes reflects the improvement in the Group's results, particularly the growth in UMG’s taxable income in the United States.
As a consequence of the foregoing, in 2018, earnings attributable to Vivendi SA shareowners amounted to a profit of €127 million (or €0.10 per share - basic). They notably included the write-down of the value of the Telecom Italia shares for €1,066 million but did not include the €1,160 million capital gain on the sale of the interest in Ubisoft, recognized in equity (of which, only €53 million was recorded in the Statement of Earnings).
Adjusted net income amounted to a profit of €1,157 million (or €0.92 per share - basic). Excluding the favorable non-recurring tax impacts recorded in 2017, adjusted net income in 2018 would have been up 33.6% compared to 2017.
As of December 31, 2018, Vivendi's Net Cash Position amounted to €176 million, compared to Financial Net Debt of €2,340 million as of December 31, 2017. This position results from the strong cash flow generated by the Group's main businesses (the Group’s CFFO was up 13.8%) and from the proceeds received from sale of equity interests (Ubisoft, Fnac Darty and Telefonica) for €2.2 billion. The sale of the 0.95% interest in Telefonica was completed at the end of 2018, in accordance with the commitments made to the Brazilian Competition Authority (Cade) in connection with the sale of GVT in 2015.
Opening of UMG’s share capital
The sale process for up to 50% of Universal Music Group’s share capital to one or more strategic partners is moving forward:
- corporate structure reorganization was completed at the end of 2018
- launch of Vendor Due Diligence at the beginning of 2019; and
- meetings were held with the pre-selected banks. The final selection of the financial advisors that will assist Vivendi in finding the best partners for UMG should be completed in the coming weeks.
As previously announced, a floor price will be set for the entry of partners into UMG’s share capital.
Editis
Following the share purchase agreement entered into on November 15, 2018 with the Spanish group Planeta, based on an enterprise value of €900 million, Vivendi completed the acquisition of 100% of the share capital of Editis, the second-largest French-language publishing group, on January 31, 2019. This transaction resulted in an outflow of €833 million, including the repayment of Editis’s debt.
Editis employs 2,400 people. It has leading positions in the fields of fiction, children’s books, non-fiction, graphic and illustrated books, educational & reference books. Through its subsidiary Interforum, it is also a leader in book selling/distribution.
This acquisition represents another major step in the building of an integrated content, media and communications group.
Shareholders’ Meeting on April 15, 2019
Among the resolutions to be submitted to a vote at the Shareholders’ Meeting to be held on April 15, 2019, the shareholders will be asked to approve two resolutions relating to share repurchases:
- The renewal of the authorizations granted to the Management Board by the Shareholders Meeting of April 19, 2018 to repurchase shares of the company within the limit of 10% of the share capital at a maximum purchase price of €25 per share, and to reduce the company’s share capital within the limit of 10% by cancelling the shares acquired.
- Granting to the Management Board authorization to purchase shares of the company by way of a public share buyback offer (OPRA) within the limit of 25% of Vivendi’s share capital at a maximum purchase price of €25 per share, and to cancel the shares acquired.
Shareholders will be asked to approve a resolution on the execution of Vivendi’s plan to convert into a European Company. Based in France and present in 21 European countries, Vivendi generates 54% of its consolidated revenues, and currently employs 53% of its staff, in Europe. This new status will allow Vivendi to align its corporate form with both its business and cultural European roots.
The Shareholders' Meeting will vote on the proposal for an ordinary dividend of €0.50 per share with respect to fiscal year 2018. This amount represents an increase of 11.1% compared to the dividend distributed with respect to fiscal year 2017 and a return of approximately 2.3%. The coupon detachment date would be April 16, 2019 and the payment date April 18, 2019.
In addition, shareholders will be asked to appoint Mr. Cyrille Bolloré as a member of the Supervisory Board to replace Mr. Vincent Bolloré.
Comments on Business Key Financials
Universal Music Group
In 2018, Universal Music Group’s (UMG) revenues amounted to €6,023 million, up 10.0% at constant currency and perimeter compared to 2017 (+6.2% on an actual basis).
Recorded music revenues grew by 9.8% at constant currency and perimeter thanks to the growth in subscription and streaming revenues (+37.3%), driven by the increase in subscribers and a stronger market share, which more than offset the continued decline in both download (-23.5%) and physical (-16.1%) sales.
Recorded music best sellers for the year included releases from Drake, Post Malone, The Beatles and XXXTentacion, as well as the soundtrack release from A Star is Born.
Globally, UMG had every one of the top five tracks, the top four artists and the top three albums on Spotify in 2018. Additionally, UMG artists occupied the top five positions and 14 of the top 20 positions on Apple Music’s Global Top 100 Songs 2018.
Music publishing revenues grew by 14.5% at constant currency and perimeter, also driven by increased subscription and streaming revenues, as well as higher revenues generated from performance rights and synchronization.
Merchandising and other revenues decreased by 1.5% at constant currency and perimeter, due to lower touring activity.
Driven by the growth in revenues, UMG’s income from operations amounted to €946 million, up 22.1% at constant currency and perimeter compared to 2017 (+18.4% on an actual basis), and UMG’s EBITA amounted to €902 million, up 22.1% at constant currency and perimeter compared to 2017 (+18.4% on an actual basis).
In 2018, several of the world’s most iconic artists signed or re-signed with UMG, including ground-breaking deals with Taylor Swift, The Rolling Stones and Sir Elton John, demonstrating that UMG is the preferred partner for artists for all stages and virtually every aspect of their careers.
Canal+ Group
In 2018, Canal+ Group's revenues amounted to €5,166 million, almost stable compared to 2017 (-0.3% at constant currency and perimeter).
At the end of December 2018, Canal+ Group's overall subscriber portfolio (individual and collective subscribers in France and internationally) stood at 16.2 million, compared to 15.6 million at the end of December 2017, representing net growth of 654,000 subscribers.
Revenues from television operations in mainland France decreased slightly (-3.4% at constant currency and perimeter) due to the decline in the individual subscriber base (7.8 million, compared to 8.1 million at the end of December 2017), despite a positive change in the churn rate, which decreased by 2.2 points over the year to 13.6%. This decline was due in particular to the drop in Canalplay’s subscriber base and the termination of the Canalsat offer in favor of the new Canal offers and subscriptions via wholesale partnerships with telecom operators.
However, the Canal+ channel’s individual subscriber base recorded a net year-on-year increase in subscribers of 251,000. Including collective subscriptions, the total subscriber portfolio in mainland France reached 8.3 million.
International operations delivered a strong increase in revenues of 6.8% at constant currency and perimeter, primarily due to the very strong growth in the individual subscriber base (+883,000 year-on-year) to which all the territories contributed, without exception.
Studiocanal’s revenues amounted to €462 million, a slight year-on-year decrease (-0.6% at constant currency and perimeter) due to an unfavorable 2017 comparable basis (particularly with the worldwide success of Paddington 2) and despite significant growth in TV operations and increased catalog revenues.
In France, Studiocanal was the second largest French film distributor in 2018 with more than 10 million theater tickets sold, thanks in particular to the success of Sink or Swim (4.3 million tickets sold), Mia and the White Lion (1.4 million tickets sold), and In Safe Hands (0.8 million tickets sold) during the fourth quarter.
In 2018, Canal+ Group’s profitability increased sharply compared to 2017. Income from operations amounted to €429 million, compared to €349 million in 2017 (+22.4% at constant currency and perimeter).
EBITA before restructuring charges amounted to €428 million, up nearly €80 million year-on-year. EBITA after restructuring charges amounted to €400 million, compared to €300 million in 2017 (+32.8% at constant currency and perimeter). This strong EBITA growth was notably due to the cost savings plan initiated in 2016, the significant improvement in mainland France and sustained international development.
On November 8, 2018, Canal+ Group announced the renewal of its agreement with the French cinema, extending until the end of 2022 a historic partnership of more than 30 years. This agreement was a prerequisite for the signing on December 21, 2018 of the new media release chronology which protects and strengthens the unique position of Canal+ which can now offer new movies to its subscribers as early as 6 months after their theatrical release.
In the fourth quarter of 2018, Canal+ Group also strengthened its sports offer, especially around football, with the acquisition of the broadcasting rights in France for the English Premier League and in Poland for the Ekstraklasa. Canal+ Group is proud to have won the exclusive rights in France for the Premier League, the most widely broadcast football league in the world. Canal+ will offer the 380 Premier League matches on its channels and on myCANAL. The agreement covers three seasons (2019/2020, 2020/2021 and 2021/2022) and will start in August 2019.
In addition, the acquisition of Moto GP's rights for the first time illustrates the group's desire to diversify its sports offer, in line with recent developments in boxing and women's football.
A new global distribution agreement entered into on November 14, 2018 with the TF1 Group allows all TF1 Group channels and related non-linear services to be integrated into the Canal offers. The group had entered into a similar agreement with M6 Group in early 2018.
Havas
Reflecting an excellent fourth quarter 2018, Havas’s revenues amounted to €693 million, up 6.5% at constant currency and perimeter. Organic net revenue growth6 was 4.8% compared to the fourth quarter of 2017 (+6.7% excluding the impact of Arnold).
In 2018, Havas’s revenues amounted to €2,319 million, up 0.5% at constant currency and perimeter compared to 2017 (pro forma). Net revenues amounted to €2,195 million (compared to €2,259 million in 2017 pro forma), up 0.1% organically (+1.9% excluding the impact of Arnold) and down 2.8% on an actual basis mainly due to negative currency effects.
With an organic growth of 2.7% in the second half of 2018, compared to -2.9% in the first half of 2018, Havas confirmed the net sequential improvement in organic net revenue growth. All its businesses (creative, health and wellness and media) contributed to this upturn.
In 2018, Havas increased its profitability. Havas’s income from operations reached €258 million, compared to €254 million in 2017 (pro forma), a +0.6-point increase in the income from operations/net revenues margin to 11.8%. EBITA amounted to €215 million, compared to €212 million in 2017, representing an increase of +0.4 points in the EBITA/net revenues margin. EBITA before restructuring charges was up 3.8% compared to 2017 (+1.9% organically).
The North American agencies performed very well in the fourth quarter of 2018, thanks to Havas Media, Havas Health & You, Havas Edge and Abernathy/AMO.
Business in Europe continued to show progress at the end of the year, supported once again by robust performances in France and in the United Kingdom. In France, BETC, Havas Paris and Ekino/Fullsix agencies were the major contributors. The United Kingdom confirmed its recovery driven by the excellent performance from the media businesses, and the continued dynamism of the healthcare communications business at Havas Lynx and the creative business at Havas London. Italy continued to show steady growth, while performances from the other European countries remained mixed.
Latin America confirmed its recovery, driven by the media businesses.
Asia-Pacific returned a slightly negative performance, penalized by Australia, while China and India both reported sustained growth.
Havas pursued its policy of targeted acquisitions, completing several acquisitions in 2018:
- Catchi, the leading digital conversion rate optimization (CRO) specialist across Australia and New Zealand;
- Deekeling Arndt Advisors (DAA), a leading German communications consultancy providing communicative support and political flanking of equity market transactions, reputation management and crisis communications;
- Etoile Rouge, a communications agency dedicated to luxury and lifestyle brands in France;
- M&C consultancy, a UK-based specialist in healthcare market access; and
- Republica, the leading independent multicultural marketing agency in the United States, based in Miami, Florida.
In addition, on December 14, 2018, Havas Group entered into an agreement to acquire a 51% interest in the largest Baltics-based communications group, formed by the merger of Estonian-owned Idea Group and Lithuanian-owned Publicum Group. The new combined entity will operate under the name Havas Baltics and will represent the Havas Group in Estonia, Lithuania and Latvia.
6 Net revenues correspond to revenues less pass-through costs rebilled to customers.
For a list of Havas’s most significant awards and wins, please refer to Appendix VII.
Gameloft
In 2018, Gameloft’s OTT revenues (sales of games on platforms such as Apple, Google, Microsoft and Amazon) which represents 72% of Gameloft’s total revenues, were up 2.1% at constant currency. This increase partially offset the decline in the activity related to telecom operators, which is structurally in decline due to the gradual replacement of traditional mobile phones by smartphones, and the decrease in advertising sales. In 2018, Gameloft’s revenues amounted to €293 million, down 5.1% at constant currency and perimeter.
Gameloft released two new games on smartphones in 2018: Dungeon Hunter Champions and Asphalt 9: Legends, the latest opus of the No. 1 mobile racing franchise that has recorded more than 35 million downloads since its launch on July 26, 2018 and was among Gameloft’s Top 5 bestselling games in 2018.
Gameloft’s catalogue (63% of 2018 revenues generated by its own franchises), including its bestselling games such as Disney Magic Kingdoms, March of Empires, Dragon Mania Legends, Asphalt 8: Airborne and Asphalt 9: Legends, which accounted for 47% of Gameloft’s total revenues in 2018, is particularly resilient.
In 2018, Gameloft’s income from operations amounted to €4 million, and EBITA amounted to €2 million, including restructuring charges for €4 million.
Gameloft and the LEGO Group announced the release in 2019 of a LEGO game that will bring 40 years of LEGO minifigure history and universes to mobiles.
In December 2018, Gameloft acquired FreshPlanet, the multi-award-winning maker of the SongPop mobile games with more than 100 million downloads. In line with Gameloft’s philosophy to provide the best gaming experiences to players of all ages and countries, this acquisition is a new milestone in the company’s expansion strategy.
Vivendi Village
In 2018, Vivendi Village’s revenues amounted to €123 million, an increase of 12.6% (+11.5% at constant currency and perimeter) compared to 2017.
Ticketing revenues amounted to €58 million, up 9.9% compared to 2017 following the acquisition of Paylogic in April 2018. Vivendi Village now has a ticketing network with a strong presence in Continental Europe, the United Kingdom and the United States, which had a record year with more than 20 million tickets sold.
Live activities, which encompass Olympia Production, festivals and venues in France and Africa, recorded revenues of €34 million, an increase of 94.9% compared to 2017. Olympia Production recorded very strong growth with more than 1,100 shows. It has a diversified portfolio of 32 artists (music and comedy) and four regional festivals in France (compared to two in 2017), including Garorock, one of the country’s largest festivals with an attendance of 145,000 people, acquired at the end of 2018. L’Olympia enjoyed a very good year with 280 shows, its level of activity prior to November 2015.
In Africa, CanalOlympia, with 11 cinema and entertainment venues in eight countries at the end of 2018, is meeting the challenge of strong demand for cinema: its average attendance rate (24%) is almost double that of France.
Vivendi Sports organized its first two events in 2018, le Tour de l’Espoir (a cycling race in Cameroon) and Jab&Vibes (a boxing competition in Senegal).
Vivendi Village’s income from operations amounted to a loss of €9 million in 2018, compared to a loss of €6 million in 2017. Excluding the investments in Africa, income from operations was positive at €2 million. EBITA amounted to a loss of €9 million compared to a loss of €18 million in 2017.
New Initiatives
In 2018, New Initiatives, which includes Dailymotion, Vivendi Content and GVA, recorded revenues amounting to €66 million, up 30.5% compared to 2017.
GVA is deploying a fiber network on the African continent, enabling major cities to benefit from very high-speed Internet services. In 2018, GVA opened two locations in Gabon and Togo, and acquired a business in Congo. GVA is planning to make significant investments, which will weigh on its profitability for the first few years of operation.
Since June 2017, Dailymotion has focused on premium content and has improved its video base. Its audience for premium content has almost doubled in the space of a year, reaching 2.2 billion views at the end of 2018, compared to 1.2 billion at the end of 2017. This strategy has enabled Dailymotion to enter into many partnerships with leading global publishers. In total, more than 300 agreements were concluded in 2018, including 100 in the United States and dozens in territories where Dailymotion previously had little presence (Korea, Vietnam, India). The audience in these new countries has grown significantly.
In 2018, Dailymotion also reviewed its advertising ecosystem. The company created its own programmatic platform and content monetization system (live or programmatic). It is currently working on new formats.
New Initiatives’ income from operations amounted to a loss of €79 million, compared to a loss of €87 million in 2017. New Initiatives’ EBITA amounted to a loss of €99 million, compared to a loss of €92 million in 2017.
Outlook
Vivendi is confident in the evolution of its main businesses in 2019. As regards Canal+ Group, after a strong improvement in its profitability in 2018, it will continue its improvement efforts and its 2019 profitability is expected to be even better than it was on 2018.
For additional information, please refer to the “Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2018” released online today 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 mobile 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 forms of business 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 the financial condition, results of operations, business, strategy, plans and outlook of Vivendi, 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 14, 2019
6:00pm Paris time – 5:00pm London
time – 12:00pm New York time
Media invited on a listen-only basis.
The conference will
be held in English with a translation in French.
Internet:
The conference can be followed on the Internet at: www.vivendi.com
(audiocast)
Numbers to dial:
France +33 (0)1 76 77 22 57
Royaume-Uni +44
(0)330 336 9411
Etats-Unis +1 323-794-2423
English
original version - Code 6514463
On our website www.vivendi.com will be available an audio webcast and the slides of the presentation.
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) | 2018 | 2017 | % Change | % Change at constant currency | % Change at constant currency and perimeter (a) | |||||
| Revenues | ||||||||||
| Universal Music Group | 6,023 | 5,673 | +6.2% | +10.0% | +10.0% | |||||
| Canal+ Group | 5,166 | 5,198 | -0.6% | -0.3% | -0.3% | |||||
| Havas | 2,319 | 1,211 | na | na | na | |||||
| Gameloft | 293 | 320 | -8.3% | -5.1% | -5.1% | |||||
| Vivendi Village | 123 | 109 | +12.6% | +13.1% | +11.5% | |||||
| New Initiatives | 66 | 51 | +30.5% | +30.5% | +30.5% | |||||
| Elimination of intersegment transactions | (58) | (44) | ||||||||
| Total Vivendi | 13,932 | 12,518 | +11.3% | +14.1% | +4.9% | |||||
| Income from operations | ||||||||||
| Universal Music Group | 946 | 798 | +18.4% | +22.1% | +22.1% | |||||
| Canal+ Group | 429 | 349 | +23.1% | +22.4% | +22.4% | |||||
| Havas | 258 | 135 | na | na | +7.2% | |||||
| Gameloft | 4 | 10 | -60.4% | -56.4% | -56.4% | |||||
| Vivendi Village | (9) | (6) | -36.9% | -36.9% | x 2.9 | |||||
| New Initiatives | (79) | (87) | +9.1% | +9.1% | +9.1% | |||||
| Corporate | (110) | (101) | -9.5% | -10.4% | -10.4% | |||||
| Total Vivendi | 1,439 | 1,098 | +31.0% | +33.9% | +22.7% | |||||
| EBITA | ||||||||||
| Universal Music Group | 902 | 761 | +18.4% | +22.1% | +22.1% | |||||
| Canal+ Group | 400 | 300 | +33.6% | +32.8% | +32.8% | |||||
| Havas | 215 | 111 | na | na | +3.4% | |||||
| Gameloft | 2 | 4 | -55.8% | -41.9% | -41.9% | |||||
| Vivendi Village | (9) | (18) | +48.4% | +48.4% | +33.8% | |||||
| New Initiatives | (99) | (92) | -6.9% | -6.9% | -6.9% | |||||
| Corporate | (123) | (97) | -26.8% | -27.7% | -27.7% | |||||
| Total Vivendi | 1,288 | 969 | +33.0% | +36.1% | +24.7% | |||||
na: not applicable.
a. Constant perimeter reflects the impacts of the acquisition of Havas (July 3, 2017), the acquisition of Paylogic by Vivendi Village (April 16, 2018) and the sale of Radionomy by Vivendi Village (August 17, 2017).
Nota: In 2018, Vivendi has applied two new accounting standards: IFRS 15 – Revenues from Contracts with Customers and IFRS 9 – Financial Instruments (please refer to Appendix VII).
APPENDIX I (Cont’d)
VIVENDI
OPERATING RESULTS BY BUSINESS SEGMENT
(IFRS, audited)
Quarterly revenues by business segment
| 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, | ||||
| Universal Music Group | 1,222 | 1,406 | 1,495 | 1,900 | ||||
| Canal+ Group | 1,298 | 1,277 | 1,247 | 1,344 | ||||
| Havas | 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) | ||||
| Revenues | 3,124 | 3,352 | 3,401 | 4,055 | ||||
| 2017 | ||||||||
| (in millions of euros) |
Three months ended
March 31, |
Three months ended
June 30, |
Three months ended
September 30, |
Three months ended
December 31, |
||||
| Universal Music Group | 1,284 | 1,382 | 1,319 | 1,688 | ||||
| Canal+ Group | 1,272 | 1,283 | 1,252 | 1,391 | ||||
| Havas (a) | - | - | 552 | 659 | ||||
| Gameloft | 84 | 77 | 78 | 81 | ||||
| Vivendi Village | 26 | 30 | 25 | 28 | ||||
| New Initiatives | 10 | 13 | 11 | 17 | ||||
| Elimination of intersegment transactions | (3) | (3) | (16) | (22) | ||||
| Revenues | 2,673 | 2,782 | 3,221 | 3,842 | ||||
a. As a reminder, since July 3, 2017, Vivendi has fully consolidated Havas.
Nota: As from January 1, 2018, Vivendi has applied the new accounting standard IFRS 15 – Revenues from Contracts with Customers (please refer to Appendix VII).
APPENDIX II
VIVENDI
CONSOLIDATED STATEMENT OF EARNINGS
(IFRS, audited)
Year ended December 31
| Year ended December 31, | % Change | |||||
| 2018 | 2017 | |||||
| REVENUES | 13,932 | 12,518 | + 11.3% | |||
| Cost of revenues | (7,618) | (7,302) | ||||
| Selling, general and administrative expenses excluding amortization of intangible assets acquired through business combinations | (4,875) | (4,118) | ||||
| Income from operations* | 1,439 | 1,098 | + 31.0% | |||
| Restructuring charges | (115) | (88) | ||||
| Other operating charges and income | (36) | (41) | ||||
| Adjusted earnings before interest and income taxes (EBITA)* | 1,288 | 969 | + 33.0% | |||
| Amortization and depreciation of intangible assets acquired through business combinations | (113) | (124) | ||||
| Reversal of reserve related to the Securities Class Action litigation in the United States | - | 27 | ||||
| Income from equity affiliates - operational | 7 | 146 | ||||
| EARNINGS BEFORE INTEREST AND INCOME TAXES (EBIT) | 1,182 | 1,018 | + 16.1% | |||
| Income from equity affiliates - non-operational | 122 | - | ||||
| Interest | (47) | (53) | ||||
| Income from investments | 20 | 29 | ||||
| Other financial charges and income | (763) | (100) | ||||
| (790) | (124) | |||||
| Earnings before provision for income taxes | 514 | 894 | - 42.4% | |||
| Provision for income taxes | (357) | 355 | ||||
| Earnings from continuing operations | 157 | 1,249 | - 87.4% | |||
| Earnings from discontinued operations | - | - | ||||
| Earnings | 157 | 1,249 | - 87.4% | |||
| Non-controlling interests | (30) | (33) | ||||
| EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS | 127 | 1,216 | - 89.6% | |||
| Earnings attributable to Vivendi SA shareowners per share - basic (in euros) | 0.10 | 0.97 | ||||
| Earnings attributable to Vivendi SA shareowners per share - diluted (in euros) | 0.10 | 0.94 | ||||
| Adjusted net income* | 1,157 | 1,300 | - 11.1% | |||
| Adjusted net income per share - basic (in euros)* | 0.92 | 1.04 | ||||
| Adjusted net income per share - diluted (in euros)* | 0.91 | 1.00 | ||||
In millions of euros, except per share amounts.
* non-GAAP measures.
Nota: In 2018, Vivendi has applied two new accounting standards: IFRS 15 – Revenues from Contracts with Customers and IFRS 9 – Financial Instruments (please refer to Appendix VII).
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, 2018“, 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) | 2018 | 2017 | ||
| Earnings attributable to Vivendi SA shareowners (a) | 127 | 1,216 | ||
| Adjustments | ||||
| Amortization and depreciation of intangible assets acquired through business combinations | 113 | 124 | ||
| Amortization of intangible assets related to equity affiliates | 60 | 59 | ||
| Reversal of reserve related to the Securities Class Action litigation in the United States (a) | - | (27) | ||
| Other financial charges and income | 763 | 100 | ||
| Provision for income taxes on adjustments | 104 | (160) | ||
| Impact of adjustments on non-controlling interests | (10) | (12) | ||
| Adjusted net income | 1,157 | 1,300 | ||
a. As reported in the Consolidated Statement of Earnings.
Adjusted Statement of Earnings
| Year ended December 31, | % Change | |||||
| (in millions of euros) | 2018 | 2017 | ||||
| Revenues | 13,932 | 12,518 | + 11.3% | |||
| Income from operations | 1,439 | 1,098 | + 31.0% | |||
| EBITA | 1,288 | 969 | + 33.0% | |||
| Income from equity affiliates - operational | 7 | 205 | ||||
| Income from equity affiliates - non-operational | 182 | - | ||||
| Interest | (47) | (53) | ||||
| Income from investments | 20 | 29 | ||||
| Adjusted earnings from continuing operations before provision for income taxes | 1,450 | 1,150 | + 26.1% | |||
| Provision for income taxes | (253) | 195 | ||||
| Adjusted net income before non-controlling interests | 1,197 | 1,345 | ||||
| Non-controlling interests | (40) | (45) | ||||
| Adjusted net income | 1,157 | 1,300 | - 11.1% | |||
APPENDIX III
VIVENDI
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(IFRS, audited)
| (in millions of euros) | December 31, 2018 | January 1, 2018 | ||
| ASSETS | ||||
| Goodwill | 12,438 | 12,084 | ||
| Non-current content assets | 2,194 | 2,087 | ||
| Other intangible assets | 437 | 440 | ||
| Property, plant and equipment | 986 | 930 | ||
| Investments in equity affiliates | 3,418 | 4,526 | ||
| Non-current financial assets | 2,102 | 4,502 | ||
| Deferred tax assets | 675 | 627 | ||
| Non-current assets | 22,250 | 25,196 | ||
| Inventories | 206 | 177 | ||
| Current tax receivables | 404 | 406 | ||
| Current content assets | 1,346 | 1,160 | ||
| Trade accounts receivable and other | 5,314 | 5,208 | ||
| Current financial assets | 1,090 | 138 | ||
| Cash and cash equivalents | 3,793 | 1,951 | ||
| Current assets | 12,153 | 9,040 | ||
| TOTAL ASSETS | 34,403 | 34,236 | ||
| EQUITY AND LIABILITIES | ||||
| Share capital | 7,184 | 7,128 | ||
| Additional paid-in capital | 4,475 | 4,341 | ||
| Treasury shares | (649) | (670) | ||
| Retained earnings and other | 6,303 | 6,835 | ||
| Vivendi SA shareowners' equity | 17,313 | 17,634 | ||
| Non-controlling interests | 221 | 222 | ||
| Total equity | 17,534 | 17,856 | ||
| Non-current provisions | 1,431 | 1,515 | ||
| Long-term borrowings and other financial liabilities | 3,448 | 4,170 | ||
| Deferred tax liabilities | 753 | 589 | ||
| Other non-current liabilities | 248 | 226 | ||
| Non-current liabilities | 5,880 | 6,500 | ||
| Current provisions | 438 | 412 | ||
| Short-term borrowings and other financial liabilities | 888 | 373 | ||
| Trade accounts payable and other | 9,572 | 9,019 | ||
| Current tax payables | 91 | 76 | ||
| Current liabilities | 10,989 | 9,880 | ||
| Total liabilities | 16,869 | 16,380 | ||
| TOTAL EQUITY AND LIABILITIES | 34,403 | 34,236 |
Nota: In 2018, Vivendi has applied two new accounting standards: IFRS 15 – Revenues from Contracts with Customers and IFRS 9 – Financial Instruments (please refer to Appendix VII).
APPENDIX IV
VIVENDI
CONSOLIDATED STATEMENT OF CASH FLOWS
(IFRS, audited)
| Year ended December 31, | ||||
| (in millions of euros) | 2018 | 2017 | ||
| Operating activities | ||||
| EBIT | 1,182 | 1,018 | ||
| Adjustments | 432 | 253 | ||
| Content investments, net | (137) | (317) | ||
| Gross cash provided by operating activities before income tax paid | 1,477 | 954 | ||
| Other changes in net working capital | (28) | 265 | ||
| Net cash provided by operating activities before income tax paid | 1,449 | 1,219 | ||
| Income tax (paid)/received, net | (262) | 471 | ||
| Net cash provided by operating activities | 1,187 | 1,690 | ||
| Investing activities | ||||
| Capital expenditures | (351) | (261) | ||
| Purchases of consolidated companies, after acquired cash | (116) | (3,481) | ||
| Investments in equity affiliates | (3) | (2) | ||
| Increase in financial assets | (575) | (202) | ||
| Investments | (1,045) | (3,946) | ||
| Proceeds from sales of property, plant, equipment and intangible assets | 10 | 2 | ||
| Proceeds from sales of consolidated companies, after divested cash | 16 | (5) | ||
| Disposal of equity affiliates | 2 | - | ||
| Decrease in financial assets | 2,285 | 981 | ||
| Divestitures | 2,313 | 978 | ||
| Dividends received from equity affiliates | 5 | 6 | ||
| Dividends received from unconsolidated companies | 13 | 23 | ||
| Net cash provided by/(used for) investing activities | 1,286 | (2,939) | ||
| Financing activities | ||||
| Net proceeds from issuance of common shares in connection with Vivendi SA's share-based compensation plans | 190 | 152 | ||
| Sales/(purchases) of Vivendi SA's treasury shares | - | (203) | ||
| Distributions to Vivendi SA's shareowners | (568) | (499) | ||
| Other transactions with shareowners | (16) | (10) | ||
| Dividends paid by consolidated companies to their non-controlling interests | (47) | (40) | ||
| Transactions with shareowners | (441) | (600) | ||
| Setting up of long-term borrowings and increase in other long-term financial liabilities | 4 | 855 | ||
| Principal payment on long-term borrowings and decrease in other long-term financial liabilities | (3) | (8) | ||
| Principal payment on short-term borrowings | (193) | (1,024) | ||
| Other changes in short-term borrowings and other financial liabilities | 65 | 64 | ||
| Interest paid, net | (47) | (53) | ||
| Other cash items related to financial activities | 5 | (61) | ||
| Transactions on borrowings and other financial liabilities | (169) | (227) | ||
| Net cash provided by/(used for) financing activities | (610) | (827) | ||
| Foreign currency translation adjustments of continuing operations | (21) | (45) | ||
| Change in cash and cash equivalents | 1,842 | (2,121) | ||
| Cash and cash equivalents | ||||
| At beginning of the period | 1,951 | 4,072 | ||
| At end of the period | 3,793 | 1,951 | ||
Nota: In 2018, Vivendi has applied two new accounting standards: IFRS 15 – Revenues from Contracts with Customers and IFRS 9 – Financial Instruments (please refer to Appendix VII).
APPENDIX V
VIVENDI
KEY CONSOLIDATED FINANCIAL DATA FOR THE LAST FIVE YEARS
(IFRS,
audited)
In 2018, Vivendi applied two new accounting standards:
- IFRS 15 – Revenues from Contracts with Customers: in accordance with IFRS 15, Vivendi applied this change of accounting standard to 2017 revenues, thereby ensuring comparability of the data relative to each period of 2018 and 2017 contained in this press release. The data presented below with respect to fiscal years 2014 to 2016 are historical and therefore unrestated; and
- IFRS 9 – Financial Instruments: in accordance with IFRS 9, Vivendi applied this change of accounting standard to the 2018 Statement of Earnings and Statement of Comprehensive Income and restated its opening balance sheet as of January 1, 2018; therefore, the data relative to prior years contained in this press release is not comparable.
In addition, Vivendi deconsolidated GVT, SFR and Maroc Telecom group as from May 28, 2015, November 27, 2014 and May 14, 2014, respectively, i.e., the date of their effective sale by Vivendi. In compliance with IFRS 5, these businesses have been reported as discontinued operations for the relevant periods 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, | ||||||||||||||
| 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||
|
Consolidated data |
||||||||||||||
| Revenues | 13,932 | 12,518 | 10,819 | 10,762 | 10,089 | |||||||||
| Income from operations (a) | 1,439 | 1,098 | 853 | 1,061 | 1,108 | |||||||||
| Adjusted earnings before interest and income taxes (EBITA) (a) | 1,288 | 969 | 724 | 942 | 999 | |||||||||
| Earnings before interest and income taxes (EBIT) | 1,182 | 1,018 | 887 | 521 | 545 | |||||||||
| Earnings attributable to Vivendi SA shareowners | 127 | 1,216 | 1,256 | 1,932 | 4,744 | |||||||||
| of which earnings from continuing operations attributable to Vivendi SA shareowners | 127 | 1,216 | 1,236 | 699 | (290) | |||||||||
| Adjusted net income (a) | 1,157 | 1,300 | 755 | 697 | 626 | |||||||||
| Net Cash Position/(Financial Net Debt) (a) | 176 | (2,340) | 1,231 | 7,172 | 4,681 | |||||||||
| Total equity | 17,534 | 17,866 | 19,612 | 21,086 | 22,988 | |||||||||
| of which Vivendi SA shareowners' equity | 17,313 | 17,644 | 19,383 | 20,854 | 22,606 | |||||||||
| Cash flow from operations (CFFO) (a) | 1,126 | 989 | 729 | 892 | 843 | |||||||||
| Cash flow from operations after interest and income tax paid (CFAIT) (a) | 822 | 1,346 | 341 | (69) | 421 | |||||||||
| Financial investments | (694) | (3,685) | (4,084) | (3,927) | (1,244) | |||||||||
| Financial divestments | 2,303 | 976 | 1,971 | 9,013 | 17,807 | |||||||||
| Dividends paid by Vivendi SA to its shareholders | 568 | 499 | 2,588 | (b) | 2,727 | (b) | 1,348 | (c) | ||||||
| Purchases/(sales) of Vivendi SA's treasury shares | - | 203 | 1,623 | 492 | 32 | |||||||||
|
Per share data |
||||||||||||||
| Weighted average number of shares outstanding | 1,263.5 | 1,252.7 | 1,272.6 | 1,361.5 | 1,345.8 | |||||||||
| Earnings attributable to Vivendi SA shareowners per share - basic | 0.10 | 0.97 | 0.99 | 1.42 | 3.52 | |||||||||
| Adjusted net income per share | 0.92 | 1.04 | 0.59 | 0.51 | 0.46 | |||||||||
| Number of shares outstanding at the end of the period (excluding treasury shares) | 1,268.0 | 1,256.7 | 1,259.5 | 1,342.3 | 1,351.6 | |||||||||
| Equity per share, attributable to Vivendi SA shareowners | 13.65 | 14.04 | 15.39 | 15.54 | 16.73 | |||||||||
| Dividends per share paid | 0.45 | 0.40 | 2.00 | (b) | 2.00 | (b) | 1.00 | (c) | ||||||
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 the 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 the 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.
- On June 30, 2014, Vivendi SA paid an ordinary dividend of €1 per share to its shareholders from additional paid-in capital, treated as a return of capital distribution to shareholders.
APPENDIX VI
VIVENDI
RESTATEMENT OF COMPARATIVE INFORMATION
(IFRS, audited)
In 2018, Vivendi applied two new accounting standards:
- IFRS 15 – Revenues from Contracts with Customers: in accordance with IFRS 15, Vivendi applied this change of accounting standard to 2017 revenues, thereby ensuring comparability of the data relative to each period of 2018 and 2017 contained in this press release.
- IFRS 9 – Financial Instruments: in accordance with IFRS 9, Vivendi applied this change of accounting standard to the 2018 Statement of Earnings and restated its opening balance sheet as of January 1, 2018; therefore, the data relative to 2017 contained in this press release is not comparable.
For a detailed description, please refer to Notes 1 and 28 to the Consolidated Financial Statements for the year ended December 31, 2018, of the “Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2018”, which will be released online later on Vivendi’s website (www.vivendi.com).
Impacts related to the application of IFRS 15 on revenues by business segment
| 2017 | ||||||||||
| (in millions of euros) |
Three months
ended March 31, |
Three months
ended June 30, |
Three months ended
September 30, |
Three months ended
December 31, |
Year ended
December 31, |
|||||
| Revenues (as previously published) (A) | ||||||||||
| Universal Music Group | 1,284 | 1,382 | 1,319 | 1,688 | 5,673 | |||||
| Canal+ Group | 1,278 | 1,290 | 1,257 | 1,421 | 5,246 | |||||
| Havas (a) | - | - | 525 | 626 | 1,151 | |||||
| Gameloft | 68 | 62 | 63 | 65 | 258 | |||||
| Vivendi Village | 26 | 30 | 25 | 28 | 109 | |||||
| New Initiatives | 10 | 13 | 11 | 17 | 51 | |||||
| Elimination of intersegment transactions | (3) | (3) | (16) | (22) | (44) | |||||
| Total Vivendi | 2,663 | 2,774 | 3,184 | 3,823 | 12,444 | |||||
| IFRS 15 restatements (B) | ||||||||||
| Universal Music Group | - | - | - | - | - | |||||
| Canal+ Group | (6) | (7) | (5) | (30) | (48) | |||||
| Havas (a) | - | - | 27 | 33 | 60 | |||||
| Gameloft | 16 | 15 | 15 | 16 | 62 | |||||
| Vivendi Village | - | - | - | - | - | |||||
| New Initiatives | - | - | - | - | - | |||||
| Elimination of intersegment transactions | - | - | - | - | - | |||||
| Total Vivendi | 10 | 8 | 37 | 19 | 74 | |||||
| Restated revenues (A+B) | ||||||||||
| Universal Music Group | 1,284 | 1,382 | 1,319 | 1,688 | 5,673 | |||||
| Canal+ Group | 1,272 | 1,283 | 1,252 | 1,391 | 5,198 | |||||
| Havas (a) | - | - | 552 | 659 | 1,211 | |||||
| Gameloft | 84 | 77 | 78 | 81 | 320 | |||||
| Vivendi Village | 26 | 30 | 25 | 28 | 109 | |||||
| New Initiatives | 10 | 13 | 11 | 17 | 51 | |||||
| Elimination of intersegment transactions | (3) | (3) | (16) | (22) | (44) | |||||
| Total Vivendi | 2,673 | 2,782 | 3,221 | 3,842 | 12,518 | |||||
a. As a reminder, Vivendi has fully consolidated Havas since July 3, 2017.
APPENDIX VI (Cont’d)
VIVENDI
RESTATEMENT OF COMPARATIVE INFORMATION
(IFRS, audited)
Restatements of the Consolidated Statement of Financial Position
| December 31, 2017 | IFRS 9 restatements | IFRS 9 and IFRS 15 restatements by equity affiliates | January 1, 2018 | |||||||||
| (in millions of euros) | Published | IFRS 15 restatements | Restated | |||||||||
| ASSETS | ||||||||||||
| Goodwill | 12,084 | 12,084 | 12,084 | |||||||||
| Non-current content assets | 2,087 | 2,087 | 2,087 | |||||||||
| Other intangible assets | 440 | 440 | 440 | |||||||||
| Property, plant and equipment | 930 | 930 | 930 | |||||||||
| Investments in equity affiliates | 4,540 | 4,540 | (14) | 4,526 | ||||||||
| Non-current financial assets | 4,583 | 4,583 | (81) | 4,502 | ||||||||
| Deferred tax assets | 619 | 6 | 625 | 2 | 627 | |||||||
| Non-current assets | 25,283 | 6 | 25,289 | (79) | (14) | 25,196 | ||||||
| Inventories | 177 | 177 | 177 | |||||||||
| Current tax receivables | 406 | 406 | 406 | |||||||||
| Current content assets | 1,160 | 1,160 | 1,160 | |||||||||
| Trade accounts receivable and other | 5,218 | 5,218 | (10) | 5,208 | ||||||||
| Current financial assets | 138 | 138 | 138 | |||||||||
| Cash and cash equivalents | 1,951 | 1,951 | 1,951 | |||||||||
| Current assets | 9,050 | - | 9,050 | (10) | - | 9,040 | ||||||
| TOTAL ASSETS | 34,333 | 6 | 34,339 | (89) | (14) | 34,236 | ||||||
| EQUITY AND LIABILITIES | ||||||||||||
| Share capital | 7,128 | 7,128 | 7,128 | |||||||||
| Additional paid-in capital | 4,341 | 4,341 | 4,341 | |||||||||
| Treasury shares | (670) | (670) | (670) | |||||||||
| Retained earnings and other | 6,857 | (12) | 6,845 | 4 | (14) | 6,835 | ||||||
| Vivendi SA shareowners' equity | 17,656 | (12) | 17,644 | 4 | (14) | 17,634 | ||||||
| Non-controlling interests | 222 | 222 | 222 | |||||||||
| Total equity | 17,878 | (12) | 17,866 | 4 | (14) | 17,856 | ||||||
| Non-current provisions | 1,515 | 1,515 | 1,515 | |||||||||
| Long-term borrowings and other financial liabilities | 4,263 | 4,263 | (93) | 4,170 | ||||||||
| Deferred tax liabilities | 589 | 589 | 589 | |||||||||
| Other non-current liabilities | 226 | 226 | 226 | |||||||||
| Non-current liabilities | 6,593 | - | 6,593 | (93) | - | 6,500 | ||||||
| Current provisions | 412 | 412 | 412 | |||||||||
| Short-term borrowings and other financial liabilities | 373 | 373 | 373 | |||||||||
| Trade accounts payable and other | 9,001 | 18 | 9,019 | 9,019 | ||||||||
| Current tax payables | 76 | 76 | 76 | |||||||||
| Current liabilities | 9,862 | 18 | 9,880 | - | - | 9,880 | ||||||
| Total liabilities | 16,455 | 18 | 16,473 | (93) | - | 16,380 | ||||||
| TOTAL EQUITY AND LIABILITIES | 34,333 | 6 | 34,339 | (89) | (14) | 34,236 | ||||||
APPENDIX VII
VIVENDI
HAVAS: SIGNIFICANT AWARDS AND WINS
(IFRS, audited)
Major awards won by Havas
In the fourth quarter of 2018, the Palau Pledge campaign, created by Australian agency Host/Havas for the Palau Legacy Project, continued to garner awards, notably at the D&AD Impact Awards and at the LIAA. In 2018, it became one of the most awarded campaigns worldwide.
Havas Group’s agencies won 6 awards at the LIAA.
At the Clio Health Awards, Havas Lynx took 5 awards, BETC Brazil was awarded 1 Gold and Havas Republica, one of the agencies acquired by Havas in 2018, carried off 1 Silver and 1 Bronze.
Several Havas agencies did well at the Epica Awards, taking home a total of 23 awards.
At the Cristal Festival, Host/Havas was awarded the Grand Prix in the Promo & Activation category, other agencies scooped a total of 35 awards and Havas was, once again, named Advertising Network of the Year.
Adweek named Rosapark its International Agency of the Year.
Major account wins over the fourth quarter of 2018
- Healthcare communications: Havas Health & You: Novartis Genentech, AbbVie, Chemocentryx and Sage Therapeutics;
- Creative: Adidas, Henkel, Nestle, Savencia, Amway; and
- Media: Puma, Reckitt, Correos, Caisse des dépôts, Gameloft.
