186
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 4 - Business segment performance analysis
SECTION 4
Business segment performance analysis
Preliminary comments
Vivendi Management evaluates the performance of Vivendi’s business segments and allocates the necessary resources to them based on
certain operating performance indicators, notably the non-GAAP measures EBITA (Adjusted Earnings Before Interest and Income Taxes) and
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization):
–– the difference between EBITA and EBIT consists of the amortization of intangible assets acquired through business combinations, the
impairment of goodwill and other intangibles acquired through business combinations, and EBIT’s “other charges” and “other income” as
defined in Note 1.2.3 to the Consolidated Financial Statements for the year ended December 31, 2013; and
–– as defined by Vivendi, EBITDA is calculated as EBITA as presented in the Adjusted Statement of Earnings, before depreciation and
amortization of tangible and intangible assets, restructuring charges, gains/(losses) on the sale of tangible and intangible assets, and
other non-recurring items (as presented in the Consolidated Statement of Earnings by operating segment – Please refer to Note 3 to the
Consolidated Financial Statements for the year ended December 31, 2013).
Moreover, it should be noted that other companies may define and calculate EBITA and EBITDA differently from Vivendi, thereby affecting
comparability.
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 Earnings as discontinued operations. In practice, income and charges 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 Earnings (before non-controlling
interests) has been grouped under the line “Earnings from discontinued operations”;
–– in accordance with IFRS 5, these adjustments have been applied to all periods presented to ensure consistency of information; and
–– their share of net income has been excluded from Vivendi’s adjusted net income.
Data presented below also takes into account the consolidation of the following entities as from the indicated dates:
–– at Canal+ Group: D8 and D17 (September 27, 2012) and “n” (November 30, 2012); and
–– at Universal Music Group: EMI Recorded Music (September 28, 2012).
Moreover, as of January 1, 2013, Vivendi applied, with retrospective effect from January 1, 2012, amended IAS 19, whose application is
mandatory in the European Union beginning on or after January 1, 2013 (please refer to Note 1 to the Consolidated Financial Statements for
the year ended December 31, 2013). As a result, the 2012 Financial Statements, notably EBITA, were adjusted in accordance with the new
standard.
Please refer to Appendix 1 of this Financial Report for a presentation of the adjustments made to previously published data.
