Page 241 - 2012 Annual Report

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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
III - CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 3 Segment data
Note 3. Segment data
The Vivendi Group comprises six businesses operating at the heart of
the worlds of content, platforms and interactive networks. Each business
offers different products and services that are marketed through different
channels. Given the unique customer base, technology, marketing and
distribution requirements of each of these businesses, they are managed
separately and represent the base of the internal reporting of the
Group. The Vivendi Group has six businesses engaging in the operations
described below:
✱ Activision Blizzard: development, publishing and distribution of
interactive entertainment software, online or on other media (such
as console and PC);
✱ Universal Music Group: sale of recorded music, including EMI
Recorded Music since September 28, 2012, (physical and digital
media), exploitation of music publishing rights as well as artist
services and merchandising;
✱ SFR: a telecommunication operator (mobile, broadband Internet and
fixed telecommunications) in France;
✱ Maroc Telecom Group: a telecommunication operator (mobile, fixed
telecommunications and Internet) in Africa, predominantly in Morocco
as well as in Mauritania, Burkina Faso, Gabon, and Mali;
✱ GVT : a Brazilian fixed telecommunication and broadband Internet
operator and, since October 2011, Brazilian pay-TV provider; and
✱ Canal+ Group: publishing and distribution of premium and thematic
pay-TV channels as well as free-to-air channels in metropolitan
France, Poland, Africa, French overseas territories and Vietnam as well
as cinema film production and distribution in Europe.
Vivendi Management evaluates the performance of these operating
segments and allocates necessary resources to them based on certain
operating indicators (segment earnings and cash flow from operations).
Segment earnings relate to the EBITA of each business segment.
Additionally, segment data is prepared according to the following
principles:
✱ the operating segment “Holding & Corporate ” includes the cost of
Vivendi SA’s headquarters in Paris and of its New York City office, after
the allocation of a portion of these costs to each of the businesses;
✱ the operating segment “ Non-core operations and others ”
includes activities peripheral to the Group, notably Vivendi Mobile
Entertainment (which operates a service selling digital content on
the Internet and on mobile phones under the “zaOza” brand), Wengo
(the French leader in expert advisory services by phone), Digitick (the
French leader in web ticketing), and See Tickets (a British ticketing
company);
✱ intersegment commercial relations are conducted on an arm’s length
basis on terms and conditions similar to those which would be offered
by third parties;
✱ the operating segments presented hereunder are strictly identical to
the information given to Vivendi’s Management Board; and
✱ in addition, the VTI/SFR merger had no impact on the Group’s internal
reporting; SFR and Maroc Telecom Group’s operational performance
still reports separately to Vivendi’s Management.
Vivendi also presents data categorized according to six geographic regions,
consisting of its five main geographic markets (France, Rest of Europe,
United States, Morocco, and Brazil), as well as the rest of the world.
3.1. OPERATING SEGMENT DATA