Vivendi Universal's Performance for the First Quarter of 2004 Showed Significant Progress Compared to a Year Ago.Business Editors PARIS--(BUSINESS WIRE)--May 27, 2004 Vivendi
VIVENDI® is a software package for care management and staff organisation published by the German software company CONNEXT and introduced in 1995. Universal(NYSE NYSE See: New York Stock Exchange :V): Note: This press release contains consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results that are unaudited. The results are established under French Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (French-GAAP). -- Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of E930 million, up 32% versus last year on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma (1) and constant currency basis. -- Adjusted net income(2) of E239 million, versus a loss E56 million. -- Net loss(2) of E6 million, versus a net loss of E319 million. -- Consolidated cash-flow from operations(3) of E1,268 million, versus E840 million last year on a pro forma basis. -- Proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. cash-flow from operations(4) of E873 million, versus E444 million last year on a pro forma basis. -- Net debt(5) of E11.6 billion on March 31, 2004. As of today, after the NBC Universal NBC Universal is a media and entertainment company formed in May 2004 by the combination of General Electric's NBC with Vivendi Universal Entertainment (part of the French Media Group, Vivendi SA). GE owns 80% of NBC Universal with the remaining 20% owned by Vivendi SA. closing, Vivendi Universal's net debt is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. E7 billion. Comments on the Group's earnings: Revenues For the first quarter of 2004, Vivendi Universal (Paris Bourse Paris Bourse National stock market of France. : EX FP; NYSE: V) reported revenues of E5,973 million compared with E6,232 million for the first quarter of 2003, that is a 4% decline. On a pro forma basis, revenues were up 1%, and 7% at constant currency, for the first quarter of 2004. On a comparable basis(6) , revenues were up 5%, and 11% at constant currency. Operating income For the first quarter of 2004, operating income was E930 million, up 10% compared with E844 million for the same period last year. On a pro forma basis, operating income was up 27%, despite the negative impact from the euro/dollar average exchange rate. On a constant currency basis, pro forma operating income growth would have been 32% (and 29% on a comparable basis). The E199 million progress of the pro forma operating income was achieved through: + E87 million improvement at SFR SFR Swiss Franc (national currency) SFR Société Française du Radiotéléphone (French cellular provider) SFR Single Family Residence SFR Single Family Residence (real estate) Cegetel group, + E33 million improvement at Vivendi Universal Entertainment, driven by strong performances at Universal Television Group, as well as the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of Spencer Spencer, city (1990 pop. 11,066), seat of Clay co., NW Iowa, on the Little Sioux River; inc. 1880. The city lies in a fertile farm area. Beef is processed, and Spencer's manufactures include work clothes, machinery, prefabricated buildings, and metal products. Gifts, + E29 million improvement at Canal+ Group, which recorded E45 million of operating income in the first quarter of 2003 including some provision reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its , + E25 million improvement at the holding level thanks to efficient cost management, + E23 million improvement at Maroc Telecom Maroc Telecom (Arabic: اتصالات المغرب; Itissalatt Al Maghreb; Acronym: IAM) is the main telecommunication . IAM employs around 11,178 employees. , + E12 million improvement at Universal Music Group, + E11 million from the elimination of the company's cash drains (Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the operations, VTI VTI Väg- och transportforskningsinstitutet VTI Velocity-Time Integral VTI Vietnam Telecom International VTI Vocational Training Institute VTI Virtual Tunnel Interface (Cisco) VTI Vermeer Technologies Incorporated and Vivendi Valorisation The valorization of capital is a concept created by Karl Marx in his critique of political economy. The German original term is "Verwertung" (specifically Kapitalverwertung ), and was slightly offset by: - E21 million decline at VU Games. Adjusted net income (loss) For the first quarter of 2004, the adjusted net income amounted to E239 million, versus an adjusted net loss of E56 million for the same period last year. This E295 million progress was achieved thanks to strong operating results, no foreign exchange loss (versus a E80 million loss for the same period in 2003) and the improvement of equity in earnings of unconsolidated companies (profit of E45 million versus a loss of E72 million in 2003). Net income (loss) In the first quarter of 2004, net loss amounted to E6 million or E0.01 per share (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) compared to a net loss of E319 million or E0.30 per share (basic and diluted) in the first quarter of 2003. Consolidated cash-flow from operations For the first quarter of 2004, consolidated cash-flow from operations was E1,268 million, versus E840 million for the same period in 2003, on a pro forma basis. Proportionate cash-flow from operations Proportionate cash-flow from operations was E873 million, versus E444 million, in the first quarter of 2003, on a pro forma basis. This strong performance is the result of Vivendi Universal's continuing focus on cash generation and the significant improvements achieved at Canal+ Group, VUE See HP-VUE. VUE - Visual User Environment: a desktop manager for Unix from Hewlett-Packard. , Corporate, VUG vug n. A small cavity in a rock or vein, often with a mineral lining of different composition from that of the surrounding rock. [Cornish vooga. and Maroc Telecom. Net debt The net debt at the end of March 2004 was E11.6 billion. As of today, after the NBC Universal closing, Vivendi Universal's net debt is approximately E7 billion. Comments on operating income for Vivendi Universal's Media and Telecom businesses: Media activity (as fully consolidated at 100%) For the first quarter of 2004, Media businesses have generated E259 million of operating income. Canal+ Group (100% Vivendi Universal economic interest):
In millions of 1st quarter Variation Variation
euros 2004 Pro forma Comparable basis(b)
-------------------------------------------------------------------
Revenue -1% + 8%
923 0%(a) + 9%(a)
-------------------------------------------------------------------
Operating Income 74 + 64% + 68%
-------------------------------------------------------------------
(a) Variation at constant currency. (b) Comparable basis illustrating the effect of the divestitures at Canal+ Group (Telepiu, Canal+ Nordic, Canal+ Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. and Flemish Flem·ish adj. Of or relating to Flanders, the Flemings, or their language or culture. n. 1. A group of Dutch dialects spoken in the southwestern Netherlands, northwest Belgium, and parts of northern France. 2. , etc...) as if those transactions had occurred at the beginning of 2003. Significant improvement in Canal+ Group's operating income up 68% on a comparable basis. Canal+ Group reported first quarter operating income of E74 million. Neutralizing the effect of changes in scope of consolidation - primarily the sale of Telepiu at end-April 2003 - period-on-period growth came at 68%. All the French pay-television operations, the Group's core business, improved. This strong improvement was primarily driven by the Premium Channel's performance over the period. This activity benefited from the positive impact of the cost control process initiated by the management since 2003 and the significant increase in advertising, reflecting the larger overall audience and the higher satisfaction rate. In parallel, the Group's movie business had several successful high margin releases such as "Les Rivieres Pourpres 2" and "Podium podium In architecture, a pedestal on a large scale. It may be any of various elements that form the base of a structure, such as the platform forming the floor and substructure of a Classical temple, a low wall supporting columns, or the structurally or decoratively " in addition to continuing strong sales of the DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. "Les Nuls l'integrule". Universal Music Group (92% Vivendi Universal economic interest):
In millions of 1st quarter Variation
euros 2004
------------------------------------------------
Revenue -11%
978 -5%(c)
------------------------------------------------
Operating Income + 43%
(16) + 36%(c)
------------------------------------------------
(c) Variation at constant currency. UMG UMG Universal Music Group UMG Universidad Mariano Gálvez de Guatemala (Mariano Galvez University of Guatemala) UMG Upgraded Metallurgical Grade (silicon) UMG Unlicensed Medical Graduate significantly improved its operating income Operating income was a loss of E16 million versus a loss last year of E28 million. This improvement was driven by cost savings, particularly lower marketing and overhead expenses. This was partly offset by the margin impact of the drop in sales volumes and the increase in amortization expenses as a result of a reduction in the catalogue amortization period from 20 to 15 years as well as higher restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs. Major new releases for the remainder of the year include new albums from 50 Cent CENT, money. A copper coin of the United States of the value of ten mills; ten of them are equal to a dime, and one hundred, to one dollar. Each cent is required to contain one hundred and sixty-eight grains. Act of January 18th, 1837, 4 Sharsw. cont. of Story',s L. U. S. 2524. , Mariah Mariah is a given name, a colloquial variant on Maria, and normally pronounced with a long-I instead of the Latin-I. That is, "ma-RYE-ah" instead of "mah-REE-ah". In music:
Carey is the name of several places:
n. pl. nel·lies Offensive Slang Used as a disparaging term for an effeminate homosexual man. [Probably from the name Nelly, nickname for Helen.] and U2 in addition to Greatest Hits from Jay Z, George Strait George Harvey Strait, (born May 18, 1952), is an American country music singer. The native Texan is known for his honky tonk country western sound. Strait is sometimes referred to as the "King of Country" and some critics call Strait a living legend (Bego, 2001). and Shania Twain. Vivendi Universal Games Universal Games is a Nevada company that produced such board games as Merger, Titanic: The Board Game, and the Apollo 13 edition of Solarquest. In 1965, their address was in Houston, Texas. Universal Games released Merger, a financial game for 2-4 players. (99% Vivendi Universal economic interest):
In millions of 1st quarter Variation
euros 2004
------------------------------------------------
Revenue -27%
77 -17%(d)
------------------------------------------------
Operating Income -88%
(45) -x2.2(d)
------------------------------------------------
(d) Variation at constant currency. Vivendi Universal Games performance continued to suffer a decline. Vivendi Universal Games operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the first quarter was E45 million. This loss was approximately twice higher when compared to the same period last year. In January January: see month. 2004, a new management team was put in place to implement a turn around plan. The first quarter results include costs associated with such turn around, including canceling titles and reducing the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of other titles to their estimated net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. . In addition, along the accounting rules set forth last year, substantially all internal development costs are currently expensed as incurred. 2004 will be a transition year. The new management team is focused on developing high quality games on a timely basis, actively reducing the operating costs operating costs npl → gastos mpl operacionales basis and leveraging a world-wide organization. Vivendi Universal Entertainment (86% Vivendi Universal economic interest):
In millions of 1st quarter Variation Variation
euros 2004 Comparable
basis(f)
-----------------------------------------------------------------
Revenue + 3% + 8%
1,493 +21%(e) +27%(e)
-----------------------------------------------------------------
Operating Income + 15% + 8%
246 +36%(e) +27%(e)
-----------------------------------------------------------------
(e) Variation at constant currency. (f) Comparable basis illustrating the sale of Spencer Gifts as if this transaction had occurred at the beginning of 2003. On a comparable basis and at constant currency, VUE's operating income increased 27%. VUE operating income increased E33 million or 15%, mainly due to a strong performance at Universal Television Group and the improvement in Universal Parks and Resorts and other. On a comparable basis and at constant currency, operating income grew 27%. Universal Pictures Group operating income was down 13% (up 2% at constant currency) when compared to the same period last year. Universal Television Group operating income increased 14% (up 33% at constant currency). Operating income at Universal Parks and Resorts improved 36% (up 25% at constant currency) versus prior year mainly due to theme park attendance gains at Universal Studios Hollywood Hollywood. 1 Community within the city of Los Angeles, S Calif., on the slopes of the Santa Monica Mts.; inc. 1903, consolidated with Los Angeles 1910. . Telecom activity (as fully consolidated at 100%) For the first quarter of 2004, Telecom businesses have generated an operating income of E713 million. SFR Cegetel Group (approximately 56% Vivendi Universal economic interest):
In millions of 1st quarter Variation Variation
euros 2004 Comparable
basis(g)
-----------------------------------------------------------------
Revenue 2,058 + 16% + 14%
-----------------------------------------------------------------
Operating Income 552 + 19% + 17%
-----------------------------------------------------------------
(g) Comparable basis illustrating the full consolidation of Telecom Developpement at SFR Cegetel Group as if the merger had occurred at the beginning of 2003. SFR Cegetel Group's operating income grew 19% to E552 million. SFR Cegetel Group consolidated revenues for the first quarter of 2004 increased by 16% (and 14% on a comparable basis) to E2,058 million and operating income grew 19% (and 17% on a comparable basis) to E552 million. Mobile telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. achieved excellent performance with a revenue growth of 12%(7) (and 15% on a comparable basis) to E1,755 million, driven by continuing growth trend of customer base and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. evolution. Annual rolling ARPU(8) grew 3% to E435 compared to the first quarter of 2003, due to improved customer mix to 58.5% of postpaid post·paid adj. With the postage having been paid in advance. postpaid Adverb, adj with the postage prepaid Adj. 1. against 54.2% at the end of March 2003 and ongoing take-up of available data services. This, combined with strong control of customer acquisition and retention costs, led to an increase of 18%(7) (also 18% on a comparable basis) in operating income to E557 million. Fixed telephony revenues are up 39%(7) (and 9% on a comparable basis) to E303 million, mainly explained by growing retail and wholesale broadband Internet See broadband. . Fixed telephony reported operating loss of E5 million for the first quarter of 2004, compared with a loss of E8 million(7) (and a loss of E1 million on a comparable basis) in 2003, the growth in revenue being more than offset by start-up Start-up The earliest stage of a new business venture. costs of the broadband Internet offer launched in January 2004. Maroc Telecom (35% Vivendi Universal economic interest):
In millions of 1st quarter Variation
euros 2004
------------------------------------------------
Revenue + 5%
376 + 9%(h)
------------------------------------------------
Operating Income + 17%
161 + 20%(h)
------------------------------------------------
(h) Variation at constant currency. Maroc Telecom operating income grew 17% thanks to an efficient control of costs. Operating income amounted to E161 million, up 17% compared with the first quarter of 2003 (up 20% at constant currency). Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was up 4 points to 43%. This strong performance was achieved thanks to revenues growth (which were up 9% at constant currency), efficient cost management and lower bad debt. These positive effects were slightly offset by fixed higher termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. costs and by a higher number of sold handsets (up 20% versus 2003) for the mobile operations. Other profit and loss highlights for the first quarter of 2004 Financing expense In the first quarter of 2004, financing expense amounted to E162 million compared with E180 million for the same period in 2003. Average gross debt decreased to E13.0 billion in the first quarter of 2004 from E18.9 billion in the first quarter of 2003 including the E4 billion investment to increase Vivendi Universal's stake in SFR Cegetel Group in 2003. Nonetheless, as a result of the refinancing Refinancing An extension and/or increase in amount of existing debt. of the debt at a time when Vivendi Universal's debt was poorly rated, the average cost of gross debt increased from 4.34% in 2003 to 5.27% in 2004, including management of interest costs. Other financial expenses, net of provisions In the first quarter of 2004, other financial expenses, net of provisions, amounted to E121 million compared to E146 million in the first quarter of 2003. For the first quarter of 2004, they were mainly comprised of financial provisions amounted to E102 million (mostly comprised of provision accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. as a result of the mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. of interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. (E42 million) and DuPont Dupont, DuPont, Du Pont, or du Pont may refer to: Companies
Gain on businesses sold, net of provisions Since January 2004 and until end of May, divestitures signed or finalized See finalization. by Vivendi Universal were mainly comprised of Vivendi Universal interest in Vivendi Universal Entertainment, Atica & Scipione Scipione (Gino Bonichi) (shēpyô`nā; jē`nō bōnē`kē), 1904–33, Italian painter. Together with Mario Mafai, Scipione was a cofounder of the Roman school, an expressionist movement, in 1928. , Quirat+, Kencell, Sportfive, some Expand subsidiaries and some real estate assets. For the first quarter of 2004, gain on businesses sold, net of provisions amounted to E11 million. Income tax expense For the first quarter of 2004, income tax expense totaled E297 million compared with E307 million for the same period in 2003 which included E34 million of taxes on asset sales. Equity in (losses) earnings of unconsolidated companies As of March 31, 2004, equity in earnings of unconsolidated companies amounted to E45 million compared with a loss of E72 million as of March 31, 2003. This improvement was mostly driven by Elektrim Telekomunikacja which mainly benefited from the divestiture of Elnet, as well as the improvement of Universal Parks and Resorts results. Goodwill amortization For the first quarter of 2004, goodwill amortization declined 48% to E146 million, primarily due to the exceptional write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. recorded by Canal+ Group in the first quarter of 2003. Minority interests In the first quarter of 2004, the minority interest expense totaled E266 million, compared with E256 million for the same period in 2003, primarily comprised of minority interests at SFR Cegetel Group and Maroc Telecom. Analyst Conference Call (Media invited on a listen only basis). Speaker: Mr. Jacques Jacques [ʒɑk] (French for Jacob and James) can refer to: People with the surname of Jacques:
3:00 PM Paris time 2:00 PM London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. time 09:00 AM New York EST New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Conference Call details: FRANCE France (frăns, Fr. fräNs), officially French Republic, republic (2005 est. pop. 60,656,000), 211,207 sq mi (547,026 sq km), W Europe. : +33 (0)1 71 71 81 99 - Access code: 750785 UK: +44 (0) 207 098 0703 - Access Code: 338727 US toll free: +00 (1) 866 239.0750 - Access Code: 338727 US: +00 (1) 718 354.1158 - Access Code: 338727 Webcast details: The meeting/call will also be webcast at: http://finance.vivendiuniversal.com Important Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to the risk that : the estimated levels of cash-flow and revenues stated will not be realized, that the synergies and other benefits associated with certain transactions will not be materialized; the reduction of Vivendi Universal's indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. expected to be reached as a result of the debt-reduction plan, proposed disposals and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. restructurings will not materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. in the timing or manner described above; Vivendi Universal will not be able to obtain the necessary approvals to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... certain transactions; that Vivendi Universal will be unable to further identify, develop and achieve success for new products, services and technologies; Vivendi Universal will face increased competition and that the effect on pricing, spending, third-party relationships and revenues of such competition will limit or reduce Vivendi Universal's revenue and/or income; Vivendi Universal will be unable to establish and maintain relationships with commerce, advertising, marketing, technology, and content providers; and Vivendi Universal will not be able to obtain or retain, upon acceptable terms, the licenses and permits necessary to operate and expand its businesses; as well as the risks described in the documents Vivendi Universal has filed with the U.S. Securities and Exchange Commission and the French Autorite des Marches Financiers. Investors and security holders are urged to read those documents at the Commission's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Those documents may also be obtained free of charge from Vivendi Universal. Vivendi Universal does not undertake, and expressly disclaims any obligation to provide, update or to revise any forward-looking statements. (1) The pro forma information illustrates the effect of the divestitures of Telepiu in April 2003 and Comareg in May 2003 as if these transactions had occurred at the beginning of 2003. The pro forma information is calculated as the actual results of Vivendi Universal's businesses less the actual results reported by each of the divested businesses in each period presented. The pro forma results are not necessarily indicative indicative: see mood. of the combined results that would have occurred had the events actually occurred at the beginning of 2003. (2) For reconciliation of net income (loss) to adjusted net income (loss) please refer to the table in the supplementary schedules attached to this release. (3) Net cash provided by operating activities net of capital expenditures and before financing costs and taxes. (4) Defined as cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses excluding the minority stake. (5) French GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). gross debt less cash and cash equivalents. (6) Comparable basis essentially illustrates the effect of the divestitures at Canal+ Group (Telepiu, Canal+ Nordic, Canal+ Belgium and Flemish, etc...), VUE (Spencer Gifts), VUP (VAX Unit of Performance) A unit of measurement equal to the performance of the VAX 11/780, the first VAX machine. VUP - VAX MIPS (Comareg and Atica & Scipione) and Vivendi Telecom Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. , the abandonment abandonment, in law, voluntary, intentional, and absolute relinquishment of rights or property without conveying them to any other person. Abandonment also means willfully leaving one's spouse or children, intending not to return (see desertion). of Internet operations and includes the full consolidation of Telecom Developpement at SFR Cegetel Group as if those transactions had occurred at the beginning of 2003. (7) Please note that further to the merger of SFR and Cegetel Groupe S.A. and also to better reflect the performances of each separate businesses, SFR Cegetel Group has reallocated holding and other results, which were previously reported in the "fixed and other" line renamed "fixed and internet", to the "mobile" line. As a consequence, SFR Cegetel Group's breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. of results by business differs from figures published in 2003. (8) ARPU (Average Revenue Per User) is defined as revenues net of promotions excluding roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. in and equipment sales divided by average ART total customer base for the reference period.
Appendix I
VIVENDI UNIVERSAL
CONSOLIDATED STATEMENT OF INCOME
(French GAAP, unaudited)
-----------------------
Quarter ended March 31,
-----------------------
(In millions of euros, except
per share amounts) 2004 2003
--------- ----------
Revenues EUR 5,973 EUR 6,232
Operating income EUR 930 EUR 844
Financing expense (162) (180)
Other financial expenses, net
of provisions (121) (146)
-------- --------
Financing and other
expenses, net EUR (283) EUR (326)
-------- --------
Income before gain on
businesses sold, net of
provision, income taxes,
equity interest, goodwill
amortization and minority
interests EUR 647 EUR 518
Gain on businesses sold, net of
provisions 11 81
Income tax expense (297) (307)
-------- --------
Income before equity interest,
goodwill amortization and
minority interests EUR 361 EUR 292
Equity in (losses) earnings of
unconsolidated companies (a) 45 (72)
Goodwill amortization (146) (283)
Income (loss) before
minority interests EUR 260 EUR (63)
Minority interests (266) (256)
-------- --------
Net loss EUR (6) EUR (319)
========= ========
Loss per share -
basic and diluted EUR (0.01) EUR (0.30)
========= ========
Weighted average common shares
outstanding (in millions) (b) 1,071.5 1,070.1
(a) In 2003, included earnings of sold subsidiaries comprised of
the Consumer Press Division, which was sold in early February
2003.
(b) Excluding treasury shares recorded as a reduction of
shareholders' equity (that is 3,166 shares as at March 31,
2004). ). The weighted average common shares outstanding
including the potential dilution effect of outstanding
convertible bonds and stock options represented approximately
1,207.7 million common shares as at March 31, 2004. The
financial instruments with potential dilution effect that were
in the money as of March 31, 2004 represented approximately
96.7 million common shares out of 136.2 million common shares
to be potentially issued.
Appendix II
VIVENDI UNIVERSAL
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME
(LOSS)
(French GAAP, unaudited)
Quarter ended March 31,
-----------------------
(In millions of euros) 2004 2003 Change
------- ------- ------
Net income (loss) (a) EUR (6) EUR (319) 313
Adjustments to determine adjusted
net income (loss)
Financial provisions and
amortization of financial
charges (b) 112 (378) 490
Realized losses reported in
other financial expenses, net
of financial provisions
taken previously (c) 5 316 (311)
Other non-operating, non-recurring
items reported in other financial
expenses, net of provisions - 114 (114)
------- ------- ------
Subtotal impact on financing and
other expenses, net EUR 117 EUR 52 65
(see note below)
Gain on businesses sold, net of
provisions (a) (11) (81) 70
Goodwill amortization (a) 146 283 (137)
Income tax expense (1) 34 (35)
Minority interests on adjustments (6) (25) 19
------- ------- ------
Adjusted net income (loss) EUR 239 EUR (56) 295
======= ======= ======
(a) As reported in the consolidated statement of income.
(b) As at March 31, 2004, comprised of reversal of provision
accruals as a result of mark-to-market of interest rate swap
(E42 million) and DuPont shares (E48 million) and other net
financial provision accrual and amortization of financial
charges of E22 million.
(c) As at March 31, 2004, comprised of capital losses of portfolio
investments and marketable securities.
Appendix III
VIVENDI UNIVERSAL
REVENUES AND OPERATING INCOME BY BUSINESS SEGMENT
(French GAAP, unaudited)
AS PUBLISHED
-----------------------
Quarter ended March 31,
-----------------------
(In millions of euros) %
2004 2003 Change
------- ------- ------
Revenues
--------
Canal+ Group EUR 923 EUR 1,166 -21%
Universal Music Group 978 1,100 -11%
Vivendi Universal Games 77 106 -27%
Vivendi Universal Entertainment 1,493 1,446 3%
------- ------- ------
Media EUR 3,471 EUR 3,818 -9%
SFR Cegetel Group 2,058 1,781 16%
Maroc Telecom 376 357 5%
------- ------- ------
Telecom EUR 2,434 2,138 14%
Other (a) 68 196 -65%
------- ------- ------
Total Vivendi Universal EUR 5,973 6,152 -3%
======= ======= ======
(Excluding VUP assets sold in 2003)
VUP assets sold in 2003 (b) - 80 -
------- ------- ------
Total Vivendi Universal EUR 5,973 EUR 6,232 -4%
======= ======= ======
Operating Income (Loss)
-----------------------
Canal+ Group EUR 74 EUR 158 -53%
Universal Music Group (16) (28) 43%
Vivendi Universal Games (45) (24) -88%
Vivendi Universal Entertainment 246 213 15%
======= ======= ======
Media EUR 259 EUR 319 -19%
SFR Cegetel Group 552 465 19%
Maroc Telecom 161 138 17%
------- ------- ------
Telecom EUR 713 EUR 603 18%
Holding & corporate (46) (71) 35%
Other (a) 4 (7) -
------- ------- ------
Total Vivendi Universal EUR 930 EUR 844 10%
======= ======= ======
(Excluding VUP assets sold in 2003)
VUP assets sold in 2003 (b) - - -
------- ------- ------
Total Vivendi Universal EUR 930 EUR 844 10%
======= ======= ======
(a) Correspond to Vivendi Universal Publishing (VUP) activities in
Brazil (Atica & Scipione) deconsolidated since January 1,
2004, Internet operations abandoned since January 1, 2004,
Vivendi Telecom International, Vivendi Valorisation, other non
core businesses and the elimination of intercompany
transactions.
(b) Correspond to Comareg sold in May 2003.
Appendix IV
VIVENDI UNIVERSAL
REVENUES AND OPERATING INCOME BY BUSINESS SEGMENT
(French GAAP, unaudited)
PRO FORMA (a)
-----------------------------------
Quarter Ended March 31,
-----------------------------------
% Change
at
constant
(In millions of euros) 2004 2003 % Change currency
------- ------- --------- ---------
Revenues
--------
Canal+ Group EUR 923 EUR 930 - 1% 0%
Universal Music Group 978 1,100 -11% -5%
Vivendi Universal Games 77 106 -27% -17%
Vivendi Universal Entertainment 1,493 1,446 3% 21%
------ ------ ------ ------
Media EUR 3,471 EUR 3,582 -3% 7%
SFR Cegetel Group 2,058 1,781 16% 16%
Maroc Telecom 376 357 5% 9%
------ ------- ------ ------
Telecom EUR 2,434 EUR 2,138 14% 14%
Other (b) 68 196 -65% -63%
------ ------- ------ ------
Total Vivendi Universal EUR 5,973 EUR 5,916 1% 7%
====== ======= ====== ======
Operating Income (Loss)
-----------------------
Canal+ Group EUR 74 EUR 45 64% 64%
Universal Music Group (16) (28) 43% 36%
Vivendi Universal Games (45) (24) -88% -x2.2
Vivendi Universal Entertainment 246 213 15% 36%
------ ------- ------ ------
Media EUR 259 EUR 206 26% 42%
SFR Cegetel Group 552 465 19% 19%
Maroc Telecom 161 138 17% 20%
------ ------- ------ ------
Telecom EUR 713 EUR 603 18% 19%
Holding & corporate (46) (71) 35% 32%
Other (b) 4 (7) - -
------ ------- ------ ------
Total Vivendi Universal EUR 930 EUR 731 27% 32%
====== ======= ====== ======
(a) The pro forma information illustrates the effect of the
divestitures of Telepiu in April 2003 and of Comareg in May
2003 as if these transactions had occurred at the beginning of
2003. The pro forma information is calculated as the actual
results of Vivendi Universal's businesses less the actual
results reported by each of the divested businesses in each
period presented. The pro forma results are not necessarily
indicative of the combined results that would have occurred
had the events actually occurred at the beginning of 2003.
(b) Correspond to Vivendi Universal Publishing (VUP) activities in
Brazil (Atica & Scipione) deconsolidated since January 1,
2004, Internet operations abandoned since January 1, 2004,
Vivendi Telecom International, Vivendi Valorisation, other non
core businesses and the elimination of intercompany
transactions.
Appendix V
VIVENDI UNIVERSAL
REVENUES AND OPERATING INCOME BY BUSINESS SEGMENT
(French GAAP, unaudited)
COMPARABLE BASIS (a)
-----------------------------------
Quarter Ended March 31,
-----------------------------------
% Change
at
constant
(In millions of euros) 2004 2003 % Change currency
------- ------- --------- ---------
Revenues
--------
Canal+ Group EUR 923 EUR 855 8% 9%
Universal Music Group 978 1,100 -11% -5%
Vivendi Universal Games 77 106 -27% -17%
Vivendi Universal
Entertainment 1,493 1,380 8% 27%
------ ------- ------ ------
Media EUR 3,471 EUR 3,441 1% 11%
SFR Cegetel Group 2,058 1,807 14% 14%
Maroc Telecom 376 357 5% 9%
------ ------- ------ ------
Telecom EUR 2,434 EUR 2,164 12% 13%
Other (b) 68 86 -21% -16%
------ ------- ------ ------
Total Vivendi Universal EUR 5,973 EUR 5,691 5% 11%
====== ======= ====== ======
Operating Income (Loss)
---------------------------------
Canal+ Group EUR 74 EUR 44 68% 68%
Universal Music Group (16) (28) 43% 36%
Vivendi Universal Games (45) (24) -88% -x2.2
Vivendi Universal
Entertainment 246 228 8% 27%
------- ------- --------- ------
Media 259 220 18% 33%
SFR Cegetel Group 552 471 17% 17%
Maroc Telecom 161 138 17% 20%
------- ------- --------- ------
Telecom 713 609 17% 18%
Holding & corporate (46) (71) 35% 32%
Other (b) 4 (7) - -
------- ------- --------- ------
Total Vivendi Universal EUR 930 EUR 751 24% 29%
======= ======= ========= ======
(a) Comparable basis essentially illustrates the effect of the
divestitures at Canal+ Group (Telepiu, Canal+ Nordic, Canal+
Belgium and Flemish, etc...), VUE (Spencer Gifts), VUP
(Comareg and Atica & Scipione) and Vivendi Telecom Hungary,
the abandonment of Internet operations and includes the full
consolidation of Telecom Developpement at SFR Cegetel Group as
if those transactions had occurred at the beginning of 2003.
(b) Correspond to Vivendi Telecom International (excluding Vivendi
Telecom Hungary), Vivendi Valorisation, other non core
businesses and the elimination of intercompany transactions.
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