Page 204 - 2012 Annual Report

204 VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
I - 2012 FINANCIAL REPORT
SECTION 6 OUTLOOK
SECTION 6 OUTLOOK
Preliminary comments:
The outlook for 2013 presented below regarding revenues, EBITA, EBITA margin rates, EBITDA, EBITDA margin rates, cash flow from operations
(CFFO), and capital expenditures is based on data, assumptions, and estimates considered as reasonable by Vivendi Management. They are subject
to change or modification due to uncertainties related in particular to the economic, financial, competitive and/or regulatory environment. Moreover,
the materialization of certain risks described in Note 27 to the Consolidated Financial Statements could have an impact on the group’s operations and
its ability to achieve its outlook for 2013. Finally, Vivendi considers that the non-GAAP measures, EBITA, EBITDA, CFFO, and capital expenditures are
relevant indicators of the group’s operating and financial performance.
Vivendi’s 2012 actuals compared to outlook
✱ On March 1, 2012, Vivendi expected a 2012 adjusted net income
above €2.5 billion, before the impact of the transactions announced
in the second half of 2011 (as a reminder: acquisition of EMI Recorded
Music by UMG, acquisition of the D8 and D17 channels by Canal+
Group, and strategic partnership between Canal+ Group, ITI, and TVN
in Poland). As a result, the group expected to propose a cash dividend
with respect to fiscal year 2012 representing around 45% to 55% of
adjusted net income. In addition, Vivendi expected Financial Net Debt
to be below €14 billion at year end 2012, assuming closing by end of
2012 of the transactions announced in the second half of 2011.
✱ On November 13, 2012, given the better than expected performance of
Vivendi’s businesses for the first nine months of 2012, which offset the
economic slowdown and heavier tax environment, Vivendi announced
an improvement in the 2012 adjusted net income guidance to “around
€2.7 billion, before the impact of the transactions announced in
the second half of 2011 and the restructuring charges in telecom
operations”.
✱ In 2012, Vivendi’s adjusted net income amounted to €2,550 million,
after the impact of the transactions announced in the second half
of 2011 (-€51 million for Canal+ Group and -€2 million for UMG) and
restructuring charges in its telecom operations (-€187 million for
SFR and -€79 million for Maroc Telecom Group), as well as the fine
incurred by SFR (-€66 million). Excluding these non-recurring items
and after the impact of income taxes and non-controlling interests,
adjusted net income amounted to €2,862 million, above the upgraded
guidance announced on November 13, 2012.
✱ In addition, at the end of December 2012, Financial Net Debt
amounted to €13.4 billion (below the guidance of “below €14 billion”)
and the Management Board will propose, at the General Shareholders’
Meeting held on April 30, 2013, a €1 dividend per share, to be paid in
cash, representing a distribution of €1,300 million, or 51% of adjusted
net income, or 45% of adjusted net income, excluding these non-
recurring items.
Vivendi’s outlook for 2013
✱ Vivendi’s new strategic orientation focuses on strengthening in media
and content and the maximization of SFR’s value. The group’s strong
presence in content (games, music, and audiovisual) provides a solid
and unique foundation to build a worldwide European-born media
leader. Vivendi owns and creates high-quality content with strong
brands and a unique know-how. Moreover, SFR will strive to stabilize
its operations thanks to a proactive commercial strategy, invest to
boost growth, adapt its cost structure to a new bipolarized market
(and execute the €500 million fixed cost savings plan), and seek to
enter into partnerships (network sharing / industrial partnerships).
✱ Through this strengthening in media and content and the maximization
of SFR’s value, Vivendi’s Management Board remains committed to
focusing on shareholder value creation (through dividend distributions,
share buybacks, and strategic acquisitions), adjusted net income per
share, and maintaining a long-term credit rating of BBB (Standard &
Poor’s / Fitch) / Baa2 (Moody’s).
✱ Vivendi’s priorities for 2013 will be to focus on cash flow generation
in a slow economic environment, continue to adapt its telecoms
businesses to a challenging environment, and integrate the
acquisitions closed in 2012 and deliver initial synergies.