339
Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
Note 3. Net Financial Income/(Loss)
Note 3.
Net Financial Income/(Loss)
Net economic financial income/(loss) is broken-down as follows:
(in millions of euros)
2013
2012
Net financing costs
(172.2)
(190.7)
Dividends received
3,545.5
975.9
Foreign exchange gains & losses
(19.2)
24.4
Other financial income and expenses
(36.9)
(15.7)
Movements in financial provisions
(5,692.6)
(6,181.6)
Total
(2,375.4)
(5,387.7)
The decrease in the net financing costs from -€190.7 million in 2012 to
-€172.2 million in 2013 is due to:
the decrease in external financing net costs from -€457.7 million
in 2012 to -€454.6 million in 2013, despite an increase in the
average external net debt from €14.1 billion in 2012 to €14.6 billion
in 2013, mainly reflecting the impact of the dividend payment of
€1,324.9 million as well changes in the scope of the Group (please
see, “Significant Events” above); and
conversely, an increase in internal net financing income (see Note 9,
Current Assets) from €267.0 million in 2012 to €282.4 million
in 2013.
Within income from affiliates, dividends recorded totaled
€3,545.5 million in 2013 including a dividend of €2,562.5 million
received from Vivendi Holding I LLC (formerly, Vivendi Holding I Corp.)
in the form of Activision Blizzard shares and a dividend from SFR of
€981.9 million, compared to €975.8 million in 2012 (which included a
dividend received from SFR of €974.4 million).
The changes to financial provisions and impairments resulted in a
net charge of €5,692.6 million including €5,706 million impairment
on long-term investments in affiliates (please see Note 7, Long-term
investments):
as of December 31, 2013, Vivendi examined the value in use of SFR
telecommunication activities in France using the usual valuation
methods (in particular the DCF method) for which Vivendi required
the assistance of an independent appraiser. The most recent
cash flow forecasts, and financial assumptions approved by the
Management of the Group were used and were updated to take
into account the strong impact on revenues of the new tariff policies
decided by SFR in a highly competitive environment, partially
offset by cost savings which were consistent with expectations
under SFR’s transformation plan, while maintaining high capital
expenditures, notably due to SFR’s acceleration of very-high speed
mobile network investments. The value in use of the 51.9% interest
in Maroc Telecom held indirectly by SFR was determined based on
the definitive agreement entered into with Etisalat which values this
interest at MAD 92.6 per share or total sale proceeds to Vivendi
Group of approximately €4.2 billion in cash, including a €310 million
dividend distribution with respect to fiscal year 2012, according
to the financial terms known to date (please see “Significant
Events” above). As a result, Vivendi’s Management decided to
record an impairment loss of €5,318 million on its interest as of
December 31, 2013;
as of December 31, 2013, as was done at the end of 2012,
Groupe Canal+ SA value in use and, in particular, the value in
use of its pay-TV activities in France, was determined through
the usual methods of valuation (in particular, the DCF method).
The most recent cash flow forecasts and financial assumptions
approved by the Management of the Group were used. They take
into account the expected increase in the VAT rate from 7% to 10%
(effective January 1, 2014 in Metropolitan France) and the adverse
changes in the macro-economic and competitive environments of
the markets on which the Group operates. As a result, Vivendi’s
Management determined that Groupe Canal+ value in use as of
December 31, 2013 was below its carrying value and consequently
recorded an impairment loss of €380 million.
As a reminder, as of December 31, 2012, Groupe Canal+ SA
cumulative impairment was €660 million.
