184
Annual Report -
2013
-
Vivendi
Financial Report
| Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
4
SECTION 3 - Cash flow from operations analysis
SECTION 3
Cash flow from operations analysis
In 2013, cash flow from operations (CFFO) generated by business
segments was €1,453 million (compared to €1,213 million in 2012), an
improvement of €240 million (+19.8%). In 2012, capital expenditures
notably included the acquisition by SFR of 4G mobile spectrum for
€1,065 million. Excluding this impact, CFFO decreased by €825 million
(-36.2%).
In 2013, cash flow from operations before capital expenditures (CFFO
before capex, net) generated by business segments amounted to
€4,077 million (compared to €5,189 million in 2012), a €1,112 million
decrease. This change reflected a decrease in EBITDA after changes in
net working capital (-€999 million), primarily related to SFR’s decrease.
It also reflected the increase in restructuring charges paid by SFR
(+€150 million) and UMG (+€25 million), partially offset by the dividends
paid by Beats to UMG (€54 million).
In 2013, capital expenditures, net amounted to €2,624 million
(compared to €3,976 million in 2012), a €1,352 million decrease, notably
attributable to the acquisition by SFR in January 2012 of 4G mobile
spectrum for €1,065 million. Excluding this impact, capital expenditures,
net decreased by €287 million.
Cash payments for financial activities amounted to €877 million
(compared to €640 million in 2012), a €237 million increase.
This change was primarily due to the premiums paid (€182 million) and
foreign exchange losses incurred (€34 million) in relation to the early
redemption of bonds (euro-denominated and US dollar-denominated
bonds) for an aggregate amount of €3 billion, following the sale of
88% of its interest in Activision Blizzard on October 11, 2013. In 2012,
cash payments for financial activities notably included a €78 million
foreign exchange loss attributable to the redemption in April 2012 of
a $700 million bond. Moreover, cash payments for financial activities
included interest paid, net of €528 million (compared to €544 million
in 2012), a €16 million decrease.
Income taxes paid amounted to €197 million (compared to €353 million
in 2012), a €156 million decrease, reflecting the decrease in the amount
of income tax installments paid by the group’s entities (-€491 million),
partially offset by lower refunds received as part of Vivendi’s SA’s tax
group System (€201 million received in 2013, compared to €530 million
received in 2012). In 2013, the amount of taxes paid included the new
additional contribution of 3% on the dividend paid by Vivendi SA
(€40 million).
Therefore, in 2013, cash flow from operations after interest and income
taxes paid (CFAIT) amounted to €379 million (compared to €220 million
in 2012), a €159 million increase.
Preliminary comments
Vivendi considers that the non-GAAP measures cash flow from operations (CFFO), cash flow from operations before capital expenditures
(CFFO before capex, net) and cash flow from operations after interest and taxes (CFAIT) are relevant indicators of the group’s operating and
financial performance. These indicators should be considered in addition to, and not as substitutes for, other GAAP measures as reported in
Vivendi’s Cash Flow Statement, contained in the group’s Consolidated Financial Statements.
As from the second quarter of 2013, in compliance with IFRS 5, Activision Blizzard and Maroc Telecom Group have been reported in Vivendi’s
Consolidated Statement of Cash Flows as discontinued operations. In practice, cash flows from these two businesses have been reported
as follows:
–– their contribution until the effective sale, if any, to each line of Vivendi’s Consolidated Statement of Cash Flows has been grouped under
the line “Cash flows from discontinued operations”;
–– in accordance with IFRS 5, these adjustments have been applied to all periods presented to ensure consistency of information; and
–– their cash flow from operations (CFFO), cash flow from operations before capital expenditures, net (CFFO before capex, net), and cash
flow from operations after interest and income taxes (CFAIT) have been excluded from Vivendi’s CFFO, CFFO before capex, net, and CFAIT.
