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Consolidated
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Note 22. Financial instruments and management of financial risks
(in millions of euros)
Note
December 31, 2014
Total
Level 1
Level 2
Level 3
Assets
Available-for-sale securities
(a)
14
4,881
4,676
162
43
Derivative financial instruments
22.2
139
-
139
-
Other financial assets at fair value through profit or loss
13
5
-
8
UCITS
16
4,754
4,754
-
-
Liabilities
Commitments to purchase non-controlling interests
87
-
-
87
Derivative financial instruments
22.2
33
-
33
-
(a)
As of December 31, 2014, available-for-sale securities primarily included securities held by Vivendi, valued on stock market price at that date: an
interest in Numericable-SFR for €3,987 million and an interest in Activision Blizzard for €689 million.
(in millions of euros)
Note
December 31, 2013
Total
Level 1
Level 2
Level 3
Assets
Available-for-sale securities
14
360
-
304
56
Derivative financial instruments
22.2
126
-
126
-
Other financial assets at fair value through profit or loss
5
5
-
-
UCITS
16
46
46
-
-
Liabilities
Commitments to purchase non-controlling interests
22
-
-
22
Derivative financial instruments
22.2
26
-
26
-
In 2014 and 2013, there was no transfer of financial instruments
measured at fair value between level 1 and level 2. In addition, as of
December 31, 2014 and December 31, 2013, financial instruments
measured at level 3 fair value did not include any significant amount.
22.2.
Management of financial risks
As part of its business, Vivendi is exposed to several types of financial
risks: market risks, credit risks, counterparty risks, as well as liquidity
risks. Market risks notably include interest rate risks, foreign currency
risks and equity market value risks. Vivendi’s Financing and Treasury
Department centrally manages financial risks for the group and its
subsidiaries, reporting directly to Vivendi’s Chief Financial Officer. The
Department has the necessary expertise, resources (notably technical
resources), and information systems for this purpose. The Treasury
Committee monitors, on a bi-monthly basis, the liquidity positions in
all business units and the exposure to main financial risks, in particular
counterparty risk, equity market value risks as well as foreign currency
risks and interest rate risks. Finally, short- and long-term financing
activities are performed at the group’s headquarters and are subject to
the prior approval of the Management Board and Supervisory Board, in
accordance with the provisions of their Internal Regulations.
As of December 31, 2014, the financial position of Vivendi may be
summed up as follows:
p
p
due to the sale of 88% of Vivendi’s interest in Activision Blizzard in
October 2013, the sale of Maroc Telecom in May 2014 and mainly
the sale of SFR in November 2014, Vivendi has a Net Cash Position
of €4.6 billion, of which €6.8 billion in cash and cash equivalents and
€2.2 billion in gross financial debt, primarily in bonds for €2.0 billion.
Vivendi has a bank credit facility available for €2.0 billion, undrawn
as of December 31, 2014;
p
p
Vivendi held a portfolio of quoted and unquoted minority interests,
notably Numericable–SFR, Activision Blizzard and TVN in Poland,
as well as at UMG (Spotify, Vevo, Deezer), which represented an
aggregate market value of approximately €5.1 billion (before taxes)
as of December 31, 2014; and
p
p
as part of the current appeals in connection with Liberty Media
Corporation and securities class action litigations in the United
States, Vivendi put into place cash guarantee deposits for an
aggregate amount of approximately €1 billion.
In addition and as a reminder, once the sale of GVT has been completed
(expected during the second quarter of 2015), Vivendi’s portfolio of
securities will increase with the minority interests it will receive in
Telefonica Brasil (VIVO/GVT) and Telecom Italia, which represented an
aggregate market value of approximately €2.8 billion (before taxes) as
of August 28, 2014 (starting date of the exclusive negotiations with
Telefonica).
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