Page 13 - 2012 Annual Report
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VIVENDI
l
2012
l Annual Report
13
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS
1
1
SECTION 1 - GROUP PROFILE
FINANCIAL COMMUNICATION POLICY AND VALUE CREATION
1.4.2.2. COMMUNICATION WITH INDIVIDUAL
SHAREHOLDERS
Vivendi currently has 400,000 individual shareholders (excluding employee
shareholders), holding a total of 6.5% of its share capital. Vivendi provides
them with “tailored” information befitting their commitment, investment
and confidence in Vivendi. Vivendi’s daily priority is to constantly stay
in contact with its shareholders, provide them with information and
understand their needs.
In 2009, a Shareholders’ Committee was created. Its composition reflects
the diversity of Vivendi’s individual shareholder structure. In 2012, some of
its members were reappointed and, due to the high quality of candidates,
there are now ten members compared to the previous nine.
The committee acts as a bridge between Vivendi management and
shareholders and as such is kept appraised of Vivendi’s latest news
and ongoing projects (e.g., corporate social responsibility policies, the
Create Joy
solidarity program, launch of the new corporate website).
It meets at least three times a year and works on several topics, including:
✱
shareholder documentation: letters, business reports and brochures;
✱
online information: “Individual shareholder” pages on the Group’s
website, social media; and
✱
Group events: General Meeting of Shareholders, financial information
meetings, “
Jeudi, c’est Vivendi
” themed meetings.
The committee can be contacted via e-mail (
),
and in 2012, approved the creation of a Twitter account for individual
shareholders (@SolangeMaulini).
In addition to the Shareholders’ Committee, a Shareholders’ Club was
created in 2010. Its purpose is to organize information meetings and stage
events for individual shareholders. It is open to anyone who holds Vivendi
shares, in either registered or bearer form.
Vivendi offers members of this Club a broad range of activities and
tours. In 2012, the “
Jeudi, c’est Vivendi
” themed meetings, aimed at
providing more insight into the Group and its subsidiaries (e.g., anti-piracy
measures, new ticketing businesses and
Create Joy
solidarity program)
continued and are being extended in 2013 to cities in France such as Lyon
and Lille. Meanwhile, in association with the
Ecole de la Bourse
, training
meetings have been offered on financial markets (and more specifically
new corporate social responsibility challenges). The Shareholders’ Club
has also organized entertainment events such as outings to the Paris
Opera House, concerts at Paris’s
Sentier des Halles
concert hall, live opera
broadcasts in movie theaters and previews of StudioCanal films.
More generally, Vivendi is always attentive to its individual shareholders
and ready to provide information they need. The Individual Shareholders’
Information department can be contacted by telephone at 0805 050 050
(toll free in France) and +33 1 71 71 34 99 outside France, e-mail
(
or mail (Vivendi – Individual Shareholder
Information department – 42, avenue de Friedland – 75380 Paris
Cedex 08 – France).
1.4.3.
Value Creation in 2012
1.4.3.1. FINANCIAL RESULTS
Despite disruptions in the French telecoms market, the operating
performance of the Group’s businesses remained strong. Initially projected
to be €2.5 billion, Vivendi’s adjusted net income exceeded €2.8 billion,
before the impact of transactions announced in the second half of 2011
and restructuring charges in the telecoms segment. This result was
achieved due to all of the Group’s businesses, particularly Activision
Blizzard and SFR.
As of December 31, 2012, Vivendi’s net financial debt was €13.4 billion.
As of that date, the average economic maturity of the Group’s debt was
approximately four years and Vivendi had almost €3.4 billion in available
credit lines. Its continued good credit rating (BBB) means that shareholders
can benefit from leverage created by debt that is well-managed in respect
both of volume and cost. Consequently, Vivendi’s financial stability allows
it to carry out any transactions arising out of its strategic review under the
best possible conditions without affecting its assets value.
1.4.3.2. STRATEGIC TRANSACTIONS
Vivendi has successfully completed the final stages of its regulatory
approvals process after the relevant competition authorities approved
the three strategic transactions announced in the second half of 2012,
including:
✱
the acquisition of EMI Recorded Music, which gives UMG a leading
position in the global music market. With EMI, UMG has significantly
enhanced its catalog of artists and strengthened its presence in key
countries such as Germany and Japan;
✱
the acquisition of the channels Direct 8 and Direct Star. With this
acquisition, Canal+ Group has a very strong position in France’s free
TV market; and
✱
Canal+ Group’s partnership with ITI and TVN. With this partnership,
Canal+ Group has become a major player in private and unencrypted
television in Poland, one of the few European countries where the
global television market is growing.
Vivendi simultaneously pursues a proactive innovations policy. SFR is
stepping up its investment in 4G, becoming the first operator in France to
offer high-speed mobile broadband to the general public, first in Lyon, then
Montpellier in 2012 and Paris-La Défense in January 2013. In the first half
of 2013, 4G coverage will be extended to various other cities, including
Lille, Marseille, Strasbourg and Toulouse.
