Vivendi Universal Reports Strong 2004 Earnings and Improved Cash Flow.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- 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) --Adjusted net income(1) at EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1,380 million (EUR 1.29 per share) compared to EUR 349 million in 2003 (EUR 0.33 per share), multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. four times. --Operating income as published at EUR 3,476 million compared to EUR 3,309 million in 2003. 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. (on a comparable basis(2)) reached EUR 3,117 million versus EUR 2,216 million in 2003, a 41% rise. --Cash flow from operations(3) (on a comparable basis) at EUR 4,023 million compared to EUR 2,976 million in 2003, a EUR 1,047 million improvement and a 35% rise. 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 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 (4) (on a comparable basis) reached EUR 2,451 million versus EUR 1,514 million in 2003, up 62%. --Net income at EUR 754 million compared to a loss of EUR 1,143 million in 2003. --Financial net debt(5) at EUR 3,135 million as of December December: see month. 31, 2004 compared to EUR 11,565 million on December 31, 2003. 2004 dividend Following strong earnings in 2004, the Board of Directors of Vivendi Universal will propose, at the shareholders meeting on April 28, 2005, the distribution of a dividend of EUR 0.60 per share. The dividend would be paid on May 4, 2005 based on 2004 earnings. This shareholder distribution will amount to EUR 643 million, and a coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer of EUR 47.2 million will be paid to holders of notes mandatorily Adv. 1. mandatorily - in a manner that cannot be evaded; "the ministry considers that contributions to such a fund should be met from voluntary donations rather than from rates compulsorily levied." compulsorily, obligatorily redeemable Redeemable Eligible for redemption under the terms of an indenture. for shares ("ORA ora (o´rah) pl. o´rae [L.] an edge or margin. ora serra´ta re´tinae the zigzag margin of the retina of the eye. "). 2005 outlook --Adjusted net income(1) should grow at least 20%. (1) Adjusted net income is detailed in Appendix IV. Adjusted net income mainly does not include goodwill amortization, gain (loss) on businesses sold, net of provisions and other, most non-operating and non-recurring items, financial provisions, realized losses net of financial provisions previously taken, income tax and minority interests on adjustments. This result takes into account part of the benefit from the Consolidated Global Profit Tax System, as of January 1, 2004. (2) Comparable basis essentially illustrates the effect of the divestiture of Vivendi Universal Entertainment (VUE), of the divestitures at Canal+ Group (Telepiu, Canal+ Nordic, Canal+ Benelux etc.), of VUP (Comareg and Atica & Scipione) and of Vivendi Telecom Hungary, Kencell and Monaco Telecom and of the abandonment of Internet operations and includes the full consolidation of Telecom Developpement at SFR Cegetel and of Mauritel at Maroc Telecom as if these transactions had occurred at the beginning of 2003. In addition, comparable basis takes into consideration a change in presentation adopted as of December 31, 2004: in order to standardize the accounting treatments of sales of services provided to customers on behalf of content providers (mainly special numbers), following the consolidation of Telecom Developpement, sales of services to customers, managed by SFR Cegetel and Maroc Telecom on behalf of content providers are now presented net of the related expenses. This change in presentation has no impact on operating income. At SFR Cegetel, it induced a reduction in revenues of EUR 168 million in 2004. At Maroc Telecom, the impact was immaterial. These results are not necessarily indicative of the combined results that would have occurred had the events actually occurred at the beginning of 2003. In addition, comparable basis does not include dividends received from NBC Universal. (3) Net cash provided by operating activities net of capital expenditures and before financing costs and taxes. (4) Defined as cash flow from operations, excluding minority stakes. (5) French GAAP financial gross debt less cash and cash equivalents. Comment from Jean-Rene Fourtou, Chairman and Chief Executive Officer "Thanks to the remarkable and sustained efforts of our employees, Vivendi Universal has seen a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. and is in a solid and profitable position in its development," stated Jean Rene RENE Recycling Network Europe RENE Rocket Engine Nozzle Ejector Fourtou, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "A new era begins for Vivendi Universal. Our 2004 results support it: today we announce strong progress in adjusted net income, improved cash flow and we've we've Contraction of we have. we've have lowered our net debt to EUR 3.1 billion. For the first time in four years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company announces positive net income and will, for the first time in three years, distribute a dividend to shareholders. With Canal+, Universal Music, 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. , its participation in 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. , 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, and Maroc Telecom Maroc Telecom (Arabic: اتصالات المغرب; Itissalatt Al Maghreb; Acronym: IAM) is the main telecommunication . IAM employs around 11,178 employees. , Vivendi Universal holds premier assets and brands. Its scope of activity is stable. Subject to approval at the Combined General Meeting on April 28, 2005, I will chair the newly created Supervisory Board Supervisory board The board of directors that represents stakeholders in the governance of the corporation. . This transition offers continuity to the group and allows Vivendi Universal the best possible opportunity for growth. The Management Board, also subject to approval at the Combined General Meeting and to be chaired by Jean-Bernard Levy To assess; raise; execute; exact; tax; collect; gather; take up; seize. Thus, to levy a tax; to levy a Nuisance; to levy a fine; to levy war; to levy an execution, i.e., to levy or collect a sum of money on an execution. A seizure. , will comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise of Abdeslam Ahizoune Abdeslam Ahizoune is the chairman of Maroc Telecom; the . Since December 2006, Ahizoune is the Chairman of the Fédération Royale Marocaine d’Athlétisme, Morocco's Athletics governing body. (Maroc Telecom), Jacques Jacques [ʒɑk] (French for Jacob and James) can refer to: People with the surname of Jacques:
n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. and Chief Financial Officer, Vivendi Universal), Frank Esser (SFR Cegetel), Bertrand Bertrand - (Named after the British mathematician Bertrand Russell (1872-1970)). Wm. Leler. Rule-based specification language based on augmented term rewriting. Used to implement constraint languages. The user must explicitly specify the tree-search and the constraint propagation. Meheut (Canal+ Group), Doug DOUG Dumb Old Utility Guy Morris (Universal Music Group) and Rene Penisson (Vivendi Universal Games and Senior Executive Vice President, Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , Vivendi Universal). By empowering our management team and working together towards a common goal, we will create an operational dynamic that will bring value to each business sector and to the group in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. . The accomplishments realized over the last 30 months are proof of the management team's experience and capabilities. Vivendi Universal's philosophy will continue to be that of a coherent A version of Unix developed by Mark Williams Co., Northbrook, IL, that was noted for its conservative use of resources on Intel-based PCs. group, managed, reactive reactive /re·ac·tive/ (re-ak´tiv) characterized by reaction; readily responsive to a stimulus. re·ac·tive adj. 1. Tending to be responsive or to react to a stimulus. 2. , collective, focused on talent, technology and innovation, based on mutual rewards and built on a foundation of opportunities of high growth within our sectors. Vivendi Universal has a bright future." 2004 Major Events Creation of NBC Universal (Vivendi Universal controls 20%). Admission to the 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: Global Profit Tax System. Agreement with the Kingdom of Morocco Morocco, country, Africa Morocco (mərŏk`ō), officially Kingdom of Morocco, kingdom (2005 est. pop. 32,726,000), 171,834 sq mi (445,050 sq km), NW Africa. to increase Vivendi Unversal's stake in Maroc Telecom to 51%. Sale of 15% of Veolia Environnement Veolia Environnement SA (Euronext: VIE, NYSE: VE) is a multinational French company with activities in four main areas - water, waste management, energy and transport services. . Agreement on future governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. . Universal Music Group improves market share and performance despite difficult environment. SFR first operator to launch 3G services in France. Record launch of Vivendi Universal Games' World of Warcraft “WoW” redirects here. For other uses, see Wow.  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. . Canal+ Group's exclusive rights to League 1
soccer in 2005-2008; agreements with French cinema and American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of movie
studios.Comments on the Group's Earnings Revenues In 2004, Vivendi Universal's consolidated revenues rose to EUR 21,428 million compared to EUR 25,482 million in 2003. Vivendi Universal Entertainment (VUE See HP-VUE. VUE - Visual User Environment: a desktop manager for Unix from Hewlett-Packard. ) was deconsolidated on May 11, 2004 with the creation of NBC Universal. On a comparable basis, revenues increased by 5% (7% at constant currency), from EUR 17,972 million to EUR 18,893 million. This positive performance was mainly achieved through a return to revenue growth at Universal Music Group, Canal+ Group, continued growth at SFR Cegetel and Maroc Telecom and despite revenue decline at Vivendi Universal Games (which nonetheless reported growth in the fourth quarter of 2004 compared to the fourth quarter of 2003). Operating Income In 2004, Vivendi Universal operating income amounted to EUR 3,476 million compared to EUR 3,309 million in 2003, up 5% despite the deconsolidation of VUE on May 11, 2004. On a comparable basis, operating income increased by 41% (41% at constant currency), from EUR 2,216 million to EUR 3,117 million. All businesses contributed to this good performance, especially 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 and SFR Cegetel. Financing Expense In 2004, the financing expense amounted to EUR 455 million compared to EUR 698 million in 2003. Average financial gross debt (calculated on a daily basis) decreased to EUR 10.3 billion in 2004 compared to EUR 16.4 billion in 2003. This was mainly due to the impact of 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). plan, in particular the divestiture of VUE to NBC Universal which resulted in the deconsolidation of VUE's debt (EUR 3.6 billion) and cash proceeds (approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. EUR 3 billion after cash payment to minority shareholders and other fees). The cost of the average financial gross debt was 4.8%, unchanged compared to 2003. The decrease in financing costs resulting from lower average financial gross debt was offset by the additional costs induced induced /in·duced/ (in-dldbomacst´) 1. produced artificially. 2. produced by induction. induced, adj artificially caused to occur. induced induction. in 2004 by the High Yield Notes, 83% of which was redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. in June June: see month. 2004 and the balance in January January: see month. 2005. Income Tax In 2004, the income tax expense totaled EUR 400 million compared to a credit of EUR 408 million in 2003. As of December 31, 2004, the impact of Consolidated Global Profit Tax System on the income tax expense corresponded to expected tax savings of EUR 956 million. The first tax return must be filed by November November: see month. 30, 2005 at the latest. This credit corresponds to expected tax savings in fiscal year 2004 (EUR 464 million) and a deferred tax asset in the amount of 2005 expected tax savings (EUR 492 million) based on next year's budget. Furthermore, excluding 2003 non recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. items, the income tax expense increase reflected the improvement in income, particularly in regards to SFR Cegetel. In 2003, the income tax credit was mainly comprised of tax savings relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the rationalization rationalization, in psychology: see defense mechanism. of the structure at SFR Cegetel (EUR 515 million) and of non-recurring items (EUR 1,112 million). Net Income and Earnings 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. For the first time since 2000, Vivendi Universal reported positive net income of EUR 754 million in 2004 (basic earnings of EUR 0.70 per share and diluted earnings of EUR 0.63 per share) compared to a loss of EUR 1,143 million in 2003 (-EUR 1.07 per share - basic and diluted). Net income includes a -EUR 2,105 million foreign currency translation adjustment, with no cash impact, related to VUE's divestiture, the pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain on the divestiture of 15% of Veolia Environnement (+EUR 1,316 million), and tax savings from Consolidated Global Profit Tax System in 2005 (+EUR 492 million) and goodwill amortization and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. losses (-EUR 669 million). Adjusted Net Income Vivendi Universal's adjusted net income amounted to EUR 1,380 million in 2004 (EUR 1.29 per share) compared to an adjusted net income of EUR 349 million in 2003 (EUR 0.33 per share). This improvement of EUR 1,031 million was achieved through: --+ EUR 167 million from the improvement in operating income, despite the deconsolidation of VUE as of May 11, 2004, generating an unfavorable gap of EUR 594 million compared to 2003; --+ EUR 243 million from the reduction in financing expenses resulting from the decrease in the average financial gross debt (EUR 10.3 billion in 2004 compared to EUR 16.4 billion in 2003); --+ EUR 427 million from the improvement in other financial expenses, net of provisions (mainly due to an improvement in the foreign exchange result: net gain of EUR 9 million compared to net loss of EUR 228 million in 2003 as well as the forgiveness Forgiveness Angelica, Suor is forgiven by the Virgin Mary for ill-considered suicide. [Ital. Opera: Puccini, Suor Angelica, Westerman, 364] Bishop of Digne of SFD SFD Single Family Dwelling SFD Sacramento Fire Department (California, USA) SFD Start of Frame Delimiter (networking) SFD Saudi Fund for Development SFD Seattle Fire Department debt of EUR 200 million by SFR Cegetel in 2003); --+ EUR 147 million from the improvement in income from equity affiliates and equity in earnings of sold subsidiaries mainly as a consequence of the equity accounting of NBC Universal from May 12, 2004 (EUR 172 million); --+ EUR 146 million from lower minority interests: in 2003, SFR Cegetel results benefited from tax savings relating to the rationalization of the structure; partially offset by: --EUR 99 million in income tax expense increase, the positive impact of the Consolidated Global Profit Tax System in 2004 (+EUR 464 million) being slightly less than the impact of the rationalization of the SFR Cegetel structure recognized in 2003 (+EUR 515 million before minority interests). Cash Flow from Operations On a comparable basis, consolidated cash flow from operations rose to EUR 4,023 million in 2004 compared to EUR 2,976 million in 2003, an improvement of EUR 1,047 million and a 35% increase. Proportional proportional values expressed as a proportion of the total number of values in a series. proportional dwarf the patient is a miniature without disproportionate reductions or enlargements of body parts. cash flow from operations, on a comparable basis, rose to EUR 2,451 million in 2004 versus EUR 1,514 million in 2003, up 62%. These good results are due to treasury flexibility and positive results from Canal+ Group, UMG and VU Games. Cash flow from operations as published rose to EUR 4,747 million, and integrates NBC Universal dividends, totaling EUR 357 million including EUR 224 million in exceptional dividends. Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Assets in Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, In application of paragraph 101 of CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. (Accounting Regulation Committee) Rule 99-02, Vivendi Universal consolidated Elektrim Telekomunikacja based on financial statements in which the PTC (PTC, Needham, MA, www.ptc.com) Long a world leader in mechanical computer-aided design, manufacturing and engineering software, PTC, through acquisitions and reorganization, has transformed itself into a leading provider of Internet-based B2B solutions for discrete manufacturers. investment is no longer consolidated from January 1, 2004. Since 1999, Vivendi Universal has invested approximately EUR 1.8 billion in Elektrim Telekomunikacja (current capital and current account including accrued interests Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. .). On December 31, 2004, taking into account the impairment recorded since the end of 2001, net 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 this investment totaled EUR 379 million. Comments on operating income for Vivendi Universal's Media and Telecom businesses: Media activity (as fully consolidated at 100%) In 2004, the media business generated EUR 339 million of operating income, versus a EUR 36 million 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. in 2003, on a comparable basis. Canal+ Group (100% Vivendi Universal economic interest): In 2004, Canal+ Group reported an operating income up 94 % on a comparable basis(6) Canal+ Group reported an operating income of EUR 198 million euros. On a comparable basis, operating income rose EUR 184 million, up 94% compared to the previous year. With a positive operating income for the second consecutive year, Canal+ Group confirmed the steady strengthening of its economic situation. This strong performance also reflected the continuous effects of the strategic recovery plan implemented since 2003. French Pay-TV's operating income amounted to EUR 151 million, up 18% compared to the previous year on a comparable basis. This good result of the group's core business was mainly due to the revenues growth in addition to savings resulting from the strategic recovery plan. With an operating income at EUR 38 million, the group's movie business grew 57% on a comparable basis, highlighting the turnaround of StudioCanal over the last two years. This good performance resulted mainly from the 2004 theatrical line-up line-up Noun 1. people or things assembled for a particular purpose: Christmas TV line-up 2. and the success of 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. sales. Universal Music Group - UMG (92% Vivendi Universal economic interest): UMG's 2004 operating income represented a five-fold Adj. 1. five-fold - having five units or components fivefold, quintuple multiple - having or involving or consisting of more than one part or entity or individual; "multiple birth"; "multiple ownership"; "made multiple copies of the speech"; "his multiple increase in profits versus 2003 UMG's operating income of EUR 338 million compared to operating income of EUR 70 million in 2003 reflected the better than market sales performance, lower marketing expenses, and other results of the company's cost reduction program. The excellent operating performance was partly offset by higher amortization costs, primarily due to a reduction in the period that music and music publishing The contractual relationship between a songwriter or music composer and a music publisher, whereby the writer assigns part or all of his or her music copyrights to the publisher in exchange for the publisher's commercial exploitation of the music. catalogs were amortized from 20 to 15 years, and an impairment charge in respect of UMG's Music Clubs in the U.K. and France in December. Last year's result included a charge relating to an unfavorable decision after a trial in a lawsuit lawsuit: see procedure; tort. currently under appeal. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved to 7% of revenues from 1% last year. Vivendi Universal Games - 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. (99% Vivendi Universal economic interest): VUG cuts operating losses over the year and reports positive operating income for the fourth quarter of 2004. In 2004, VUG's operating loss was EUR 183 million compared to EUR 201 million in 2003. Excluding one time costs associated with the global turnaround plan (approximately EUR 95 million), VUG's operating loss was reduced significantly compared to the prior year. These one time costs included write-offs of certain projects and titles, along with 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). expenses related to staff reductions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .VUG's operating income for the fourth quarter of 2004 was EUR 2 million (-EUR 2 million at constant currency) compared to a reported loss of EUR 91 million in 2003. This improvement was notably driven by a reduction in costs, a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. cost due to strengthened capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. criteria criteria (krītēr´ē  ),n. of internal development costs adopted in fourth quarter 2003, combined with the launch of highly successful titles, including World of Warcraft (Blizzard Entertainment Blizzard Entertainment, a division of Vivendi Games, is an American computer game developer and publisher headquartered in Irvine, California. History Blizzard Entertainment was founded by Michael Morhaime, Allen Adham and Frank Pearce as Silicon & Synapse ). World of Warcraft, released in late November 2004 in North America, became the region's fastest growing and largest subscription-based massively multiplayer online role-playing game In Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. , the game launched in mid-January n. 1. the middle part of January. Noun 1. mid-January - the middle part of January period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" and has broken the record for the highest number of concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. players in its first 100 days. In Europe, World of Warcraft was released in mid-February n. 1. the middle part of February. Noun 1. mid-February - the middle part of February period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue and sold 380,000 copies at retail in its first weekend; the game currently has more than 500,000 subscribers. Most of World of Warcraft's financial impact will be felt in 2005 and years beyond. Other top selling games from VUG in 2004 included Half-Life half-life, measure of the average lifetime of a radioactive substance (see radioactivity) or an unstable subatomic particle. One half-life is the time required for one half of any given quantity of the substance to decay. 2, Crash Twinsanity Crash Twinsanity, released in Japan as Crash Bandicoot 5: Eeee Crash to Cortex no Yabou?!? ( , Spyro: A Hero's Tail and The Chronicles Chronicles, two books of the Bible, originally a single work in the Hebrew canon (the final book of that canon), called First and Second Chronicles in the Authorized Version, and called First and Second Paralipomenon in the Septuagint and in the Vulgate. of Riddick: Escape from Butcher Bay. Telecom activity (as fully consolidated at 100%) In 2004, the telecom business generated EUR 2,939 million of operating income, up 12% on a comparable basis. Comparable basis takes into consideration a change in presentation adopted as of December 31, 2004: in order to standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. the accounting treatments of sales of services provided to customers on behalf of content providers (mainly special numbers), following the consolidation of Telecom Developpement, sales of services to customers, managed by SFR Cegetel and Maroc Telecom on behalf of content providers are now presented net of the related expenses. This change in presentation has no impact on operating income. At SFR Cegetel, it induced a reduction in revenues of EUR 168 million in 2004. At Maroc Telecom, the impact was immaterial Not essential or necessary; not important or pertinent; not decisive; of no substantial consequence; without weight; of no material significance. immaterial adj. . These 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. SFR Cegetel (approximately 56% Vivendi Universal economic interest): In 2004, SFR Cegetel operating income grew 15% on a comparable basis(7). For the full year of 2004, SFR Cegetel operating income grew 18% (15% on a comparable basis(7)) to EUR 2,257 million. Mobile activity operating income grew 20% (also 20% on a comparable basis) to EUR 2,332 million, thanks to continued strong control of customer acquisition and retention costs (12 % of network revenues compared to 13% in 2003) and the recording of EUR 48 million of positive non-recurring items versus EUR 26 million in 2003. As a consequence of the heavy commercial and technical costs of the broadband Internet See broadband. retail offer launched in March 2004 and despite the growth in revenues and the recording of positive non-recurring items amounting to EUR 74 million (versus EUR 31 million in 2003), the fixed 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. and 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 activity operating losses were EUR 75 million in 2004, compared to a loss of EUR 29 million for the same period in 2003 (and to a profit of EUR 24 million on a comparable basis). Maroc Telecom (35% Vivendi Universal economic interest): Maroc Telecom 2004 operating income grew 8% on a comparable basis(8), at constant currency. Maroc Telecom 2004 operating income grew by 7 % to EUR 673 million (+8% on a comparable basis(8) at constant currency). The good performance of revenues was partially offset by higher acquisition costs, mainly mobile customers (customer base gross increase of +585,000 compared to 2003), intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: communication campaigns and the accounting of a non-recurring provision for a voluntary redundancy voluntary redundancy n (BRIT) → despido voluntario voluntary redundancy n (Brit) → départ m volontaire (en cas de licenciements) plan to be implemented in 2005. This provision (-EUR 14 million) compared with the positive non-recurring items (+EUR 17 million) accounted for the fourth quarter of 2003, explains an operating income decline of 7 % in the fourth quarter of 2004. Excluding these non-recurring items, operating income grew by 12 % (+11 % at constant currency on a comparable basis).
(6) Comparable basis illustrates the impact of Canal+ Group sales
(Telepiu, Canal+ Nordic, Canal+ Benelux...) as if these transactions
had taken place at the beginning of 2003.
(7) Comparable basis takes into consideration a change in presentation
adopted as of December 31, 2004: in order to standardize the
accounting treatments of sales of services provided to customers on
behalf of content providers (mainly special numbers), following the
consolidation of Telecom Developpement, sales of services to
customers, managed by SFR Cegetel and Maroc Telecom on behalf of
content providers are now presented net of the related expenses. This
change in presentation has no impact on operating income. At SFR
Cegetel, it induced a reduction in revenues of EUR 168 million in
2004.
(8) Comparable basis essentially illustrates the full consolidation
of Mauritel as if this transaction had occurred at the beginning of
2003. In addition, comparable basis takes into consideration a change
in presentation adopted as of December 31, 2004: in order to
standardize the accounting treatments of sales of services provided to
customers on behalf of content providers (mainly special numbers), the
sales of services to customers, managed by Maroc Telecom on behalf of
content providers are now presented net of the related expenses. This
change in presentation has no impact on operating income. At Maroc
Telecom, the impact was immaterial.
PRESS CONFERENCE
Speakers: Mr. Jean-Rene Fourtou, Mr. Jean-Bernard Levy and Mr. Jacques
Espinasse
Date: Thursday, March 10, 2005
11:00 a.m. Paris time
10:00 a.m. London time
5:00 p.m. New York time
Address: Vivendi Universal headquarters, 42 avenue de Friedland, 75008
Paris
Webcast details:
A webcast of the meeting/call will be available at
http://www.vivendiuniversal.com
ANALYST CONFERENCE CALL
Speakers: Mr. Jean-Rene Fourtou, Mr. Jean-Bernard Levy and Mr. Jacques
Espinasse
Date: Thursday, March 10, 2005
2 :30 p.m. Paris time
1:30 p.m. London time
8:30 a.m. New York time
Media invited on a listen-only basis.
Please call ten minutes before the start of the conference.
Call details:
France: +33 (0)1.71.23.04.15 or +33(0)1.71.23.04.16
UK: +44 (0)20.7784.1004
U.S.: +00 (1) 718.354.1152 or Toll free : (1) 866.850.2201
Webcast details:
An audio webcast of the meeting/call will available at
http://finance.vivendiuniversal.com
You may listen to a recording of the conference at:
France: +33 (0)1.71.23.02.48 - access code: 3249988#
UK: +44 (0)20.7784.1022 - access code: 8298493#
U.S.: +00 (1) 718.354.1114 - access code: 8298493#
Toll free: (1) 866.239.0765 - access code: 8298493#
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 risks that: 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 and maturity-extension plans, 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 regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , competition or other approvals necessary to complete certain proposed transactions; actual cash flow and net debt figures differ from the estimated targets described above; 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; as well as the risks described in the documents Vivendi Universal has filed previously with the U.S. Securities and Exchange Commission and/or the French Autorite des Marches Financiers. Investors and security holders may obtain a free copy of documents filed by Vivendi Universal with the U.S. Securities and Exchange Commission at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. or directly from Vivendi Universal. Vivendi Universal does not undertake, nor has any obligation, to provide, update or revise any forward-looking statements. Note: This press release contains unaudited consolidated earnings 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ).
APPENDIX I
VIVENDI UNIVERSAL
REVENUES AND OPERATING INCOME ON A COMPARABLE BASIS BY
BUSINESS SEGMENT
(French GAAP, unaudited)
Comparable basis essentially illustrates the effect of the divestiture
of Vivendi Universal Entertainment (VUE), of the divestitures at
Canal+ Group (Telepiu, Canal+ Nordic, Canal+ Benelux etc.), of VUP
(Comareg and Atica & Scipione) and of Vivendi Telecom Hungary, Kencell
and Monaco Telecom and of the abandonment of Internet operations and
includes the full consolidation of Telecom Developpement at SFR
Cegetel and of Mauritel at Maroc Telecom as if these transactions had
occurred at the beginning of 2003. In addition, comparable basis takes
into consideration a change in presentation adopted as of December 31,
2004: in order to standardize the accounting treatments of sales of
services provided to customers on behalf of content providers (mainly
special numbers), following the consolidation of Telecom
Developpement, sales of services to customers, managed by SFR Cegetel
and Maroc Telecom on behalf of content providers are now presented net
of the related expenses. This change in presentation has no impact on
operating income. At SFR Cegetel, it induced a reduction in revenues
of EUR 168 million in 2004. At Maroc Telecom, the impact was
immaterial. These results are not necessarily indicative of the
combined results that would have occurred had the events actually
occurred at the beginning of 2003. In addition, comparable basis does
not include dividends received from NBC Universal.
-------------------------------------------
Quarter ended December 31,
-------------------------------------------
% Change
at
% constant
2004 2003 Change currency
(In millions of euros) ---------- ---------- ---------- ----------
Revenues
--------
Canal+ Group EUR 888 EUR 863 3% 3%
Universal Music Group 1,760 1,691 4% 8%
Vivendi Universal Games 264 254 4% 10%
---------- ---------- ---------- ----------
Media EUR 2,912 EUR 2,808 4% 7%
SFR Cegetel 2,016 1,890 7% 7%
Maroc Telecom 417 385 8% 11%
---------- ---------- ---------- ----------
Telecom EUR 2,433 EUR 2,275 7% 7%
Non core operations
and elimination of
intercompany
transactions (13) 8 na* na*
---------- ---------- ---------- ----------
Total Vivendi Universal EUR 5,332 EUR 5,091 5% 7%
========== ========== ========== ==========
Operating Income (Loss)
-----------------------
Canal+ Group EUR (99) (143) 31% 31%
Universal Music Group 294 108 x3 x3
Vivendi Universal Games 2 (91) na* 98%
---------- ---------- ---------- ----------
Media EUR 197 (126) na* na*
SFR Cegetel 458 430 7% 7%
Maroc Telecom 159 175 -9% -7%
---------- ---------- ---------- ----------
Telecom EUR 617 605 2% 2%
Holding & corporate (47) (117) 60% 56%
Non core operations 30 11 x3 x3
---------- ---------- ---------- ----------
Total Vivendi Universal EUR 797 373 x2 x2
========== ========== ========== ==========
-------------------------------------------
Year ended December 31,
-------------------------------------------
% Change
at
% constant
2004 2003 Change currency
(In millions of euros) ---------- ---------- ---------- ----------
Revenues
--------
Canal+ Group EUR 3,470 EUR 3,339 4% 4%
Universal Music Group 4,993 4,974 0% 5%
Vivendi Universal Games 475 571 -17% -11%
---------- ---------- ---------- ----------
Media EUR 8,938 EUR 8,884 1% 3%
SFR Cegetel 8,317 7,537 10% 10%
Maroc Telecom 1,658 1,523 9% 11%
---------- ---------- ---------- ----------
Telecom EUR 9,975 EUR 9,060 10% 10%
Non core operations
and elimination of
intercompany
transactions (a) (20) 28 na* na*
---------- ---------- ---------- ----------
Total Vivendi Universal EUR 18,893 EUR 17,972 5% 7%
========== ========== ========== ==========
Operating Income (Loss)
-----------------------
Canal+ Group EUR 184 EUR 95 94% 95%
Universal Music Group 338 70 x5 x5
Vivendi Universal Games (183) (201) 9% 0%
---------- ---------- ---------- ----------
Media EUR 339 EUR (36) na* na*
SFR Cegetel 2,257 1,971 15% 15%
Maroc Telecom 682 642 6% 8%
---------- ---------- ---------- ----------
Telecom EUR 2,939 EUR 2,613 12% 13%
Holding & corporate (220) (330) 33% 31%
Non core operations (a) 59 (31) na* na*
---------- ---------- ---------- ----------
Total Vivendi Universal EUR 3,117 EUR 2,216 41% 41%
========== ========== ========== ==========
*na: non applicable.
(a) Corresponds to Vivendi Telecom International, Vivendi Valorisation
and other non core businesses.
APPENDIX II
VIVENDI UNIVERSAL
REVENUES AND OPERATING INCOME BY BUSINESS SEGMENT AS PUBLISHED
(French GAAP, unaudited)
--------------------------------
Quarter ended December 31,
--------------------------------
(In millions of euros) 2004 2003 % Change
---------- ---------- ----------
Revenues
--------
Canal+ Group EUR 891 EUR 974 -9%
Universal Music Group 1,760 1,691 4%
Vivendi Universal Games 264 254 4%
---------- ---------- ----------
Media EUR 2,915 EUR 2,919 0%
SFR Cegetel 2,016 2,021 0%
Maroc Telecom 417 370 13%
---------- ---------- ----------
Telecom EUR 2,433 EUR 2,391 2%
Non core operations and elimination
of intercompany transactions (14) 150 na*
---------- ---------- ----------
Total Vivendi Universal EUR 5,334 EUR 5,460 -2%
========== ========== ==========
(Excluding VUE and VUP assets sold in 2003)
Vivendi Universal Entertainment - 1,755 na*
VUP assets sold in 2003 - - na*
---------- ---------- ----------
Total Vivendi Universal EUR 5,334 EUR 7,215 -26%
========== ========== ==========
Operating Income (Loss)
-----------------------
Canal+ Group EUR (105) EUR (131) 20%
Universal Music Group 294 108 x3
Vivendi Universal Games 2 (91) na*
---------- ---------- ----------
Media EUR 191 EUR (114) na*
SFR Cegetel 458 404 13%
Maroc Telecom 159 171 -7%
---------- ---------- ----------
Telecom EUR 617 EUR 575 7%
Holding & corporate (47) (117) 60%
Non core operations 31 153 -80%
---------- ---------- ----------
Total Vivendi Universal EUR 792 EUR 497 59%
========== ========== ==========
(Excluding VUE and VUP assets sold in 2003)
Vivendi Universal Entertainment - 239 na*
VUP assets sold in 2003 - - na*
---------- ---------- ----------
Total Vivendi Universal EUR 792 EUR 736 8%
========== ========== ==========
--------------------------------
Year ended December 31,
--------------------------------
(In millions of euros) 2004 2003 % Change
---------- ---------- ----------
Revenues
--------
Canal+ Group EUR 3,580 EUR 4,158 -14%
Universal Music Group 4,993 4,974 0%
Vivendi Universal Games 475 571 -17%
---------- ---------- ----------
Media EUR 9,048 EUR 9,703 -7%
SFR Cegetel 8,317 7,574 10%
Maroc Telecom 1,627 1,471 11%
---------- ---------- ----------
Telecom EUR 9,944 EUR 9,045 10%
Non core operations and elimination
of intercompany transactions (a) 109 584 -81%
---------- ---------- ----------
Total Vivendi Universal EUR 19,101 EUR 19,332 -1%
========== ========== ==========
(Excluding VUE and VUP assets sold in 2003)
Vivendi Universal Entertainment (b) 2,327 6,022 -61%
VUP assets sold in 2003 - 128 na*
---------- ---------- ----------
Total Vivendi Universal EUR 21,428 EUR 25,482 -16%
========== ========== ==========
Operating Income (Loss)
-----------------------
Canal+ Group EUR 198 EUR 247 -20%
Universal Music Group 338 70 x5
Vivendi Universal Games (183) (201) 9%
---------- ---------- ----------
Media EUR 353 EUR 116 x3
SFR Cegetel 2,257 1,919 18%
Maroc Telecom 673 628 7%
---------- ---------- ----------
Telecom EUR 2,930 EUR 2,547 15%
Holding & corporate (220) (330) 33%
Non core operations (a) 76 39 95%
---------- ---------- ----------
Total Vivendi Universal EUR 3,139 EUR 2,372 32%
========== ========== ==========
(Excluding VUE and VUP assets sold in 2003)
Vivendi Universal Entertainment (b) 337 931 -64%
VUP assets sold in 2003 - 6 na*
---------- ---------- ----------
Total Vivendi Universal EUR 3,476 EUR 3,309 5%
========== ========== ==========
(a) Corresponds 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 and other non core
businesses.
(b) Vivendi Universal Entertainment was deconsolidated as of May 11,
2004 as the result of the divestiture of 80% of Vivendi
Universal's interest in this company.
APPENDIX III
VIVENDI UNIVERSAL
CONSOLIDATED STATEMENT OF INCOME
(French GAAP, unaudited)
Quarter ended
December 31,
---------------------
(In millions of euros, 2004 2003
except per share amounts) ---------- ----------
Revenues EUR 5,334 EUR 7,215
Operating income EUR 792 EUR 736
Financing expense (66) (167)
Other financial expenses, net of provisions 179 (124)
---------- ----------
Financing and other expenses, net EUR 113 EUR (291)
---------- ----------
Income (loss) before gain (loss) on businesses
sold, net of provisions,income tax, equity
affiliates, goodwill amortization and
minority interests EUR 905 EUR 445
Gain (loss) on businesses sold, net of provisions 1,517 121
Income tax (156) 1,253
---------- ----------
Income (loss) before equity affiliates,
goodwill amortization and minority interests EUR 2,266 EUR 1,819
Equity in earnings of sold subsidiaries - 1
Income from equity affiliates 32 112
Veolia Environnement impairment - (13)
Goodwill amortization (226) (495)
Impairment losses (12) (1,631)
---------- ----------
Income (loss) before minority interests EUR 2,060 EUR (207)
Minority interests (224) (435)
---------- ----------
Net income (loss) EUR 1,836 EUR (642)
========== ==========
Basic earnings per share EUR 1.71 EUR (0.60)
========== ==========
Diluted earnings per share EUR 1.53 EUR (0.60)
========== ==========
Weighted average common shares outstanding
(in millions) 1,072.7 1,072.7
Potential dilutive effect of outstanding
financial instruments (in millions) 127.0 137.9
Year ended
December 31,
---------------------
(In millions of euros, 2004 (a) 2003
except per share amounts) ---------- ----------
Revenues EUR 21,428 EUR 25,482
Operating income EUR 3,476 EUR 3,309
Financing expense (455) (698)
Other financial expenses, net of provisions (b) (247) (509)
except per share amounts) ---------- ----------
Financing and other expenses, net EUR (702) EUR(1,207)
except per share amounts) ---------- ----------
Income (loss) before gain (loss) on businesses
sold, net of provisions,income tax, equity
affiliates, goodwill amortization and
minority interests EUR 2,774 EUR 2,102
Gain (loss) on businesses sold, net of
provisions (c) (140) 602
Income tax (d) (400) 408
except per share amounts) ---------- ----------
Income (loss) before equity affiliates,
goodwill amortization and minority interests EUR 2,234 EUR 3,112
Equity in earnings of sold subsidiaries - 1
Income from equity affiliates 219 71
Veolia Environnement impairment - (203)
Goodwill amortization (638) (1,120)
Impairment losses (31) (1,792)
---------- ----------
Income (loss) before minority interests EUR 1,784 EUR 69
Minority interests (1,030) (1,212)
---------- ----------
Net income (loss) EUR 754 EUR(1,143)
========== ==========
Basic earnings per share EUR 0.70 EUR (1.07)
========== ==========
Diluted earnings per share EUR 0.63 EUR (1.07)
========== ==========
Weighted average common shares outstanding
(in millions) (e) 1,072.1 1.071.7
Potential dilutive effect of outstanding
financial instruments (in millions) (f) 127.0 137.9
(a) Includes 132 days of business for Vivendi Universal Entertainment,
deconsolidated as of May 11, 2004
(c) Includes High Yield Notes redemption costs (-EUR 350 million).
(d) Includes the after tax loss on the divestiture of 80% of Vivendi
Universal's interest in Vivendi Universal Entertainment (-EUR
1,793 million net of a -EUR 2,105 million foreign currency
translation adjustment - with no impact on cash position and
shareholders' equity), the capital gain on the divestiture of 15%
of Vivendi Universal's interest in Veolia Environnement (+EUR
1,316 million) as well as the gain on the divestiture of other
entities, net of provisions (+EUR 337 million).
(e) Following its admission to the French Consolidated Global Profit
Tax System as of January 1, 2004, Vivendi Universal recognized a
tax saving of EUR 956 million.
(f) Excluding treasury shares deducted from shareholders' equity
(2,441 shares as of December 31, 2004).
(g) Financial instruments in the money as of December 31, 2004
represented approximately 104.8 million common shares.
APPENDIX IV
VIVENDI UNIVERSAL
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME
(French GAAP, unaudited)
--------------------------------
Quarter ended December 31,
--------------------------------
(In millions of euros) 2004 2003 % Change
---------- ---------- ----------
Net income (loss) EUR 1,836 EUR (642) EUR 2,478
Adjustments
Financial provisions and amortization
of deferred charges related to
bond issuances, facilities and other (114) (156) 42
Realized losses, net of financial
provisions taken previously - 34 (34)
Other non-operating, non-recurring
items (67) 9 (76)
---------- ---------- ----------
Subtotal impact on other financial
expenses, net of provisions EUR (181) EUR (113) (68)
Loss (gain) on businesses sold,
net of provisions (1,517) (121) (1,396)
Veolia Environnement impairment - 13 (13)
Goodwill amortization 226 495 (269)
Impairment losses 12 1,631 (1,619)
Income tax (37) (1,159) 1,122
Minority interests in adjustments (12) 53 (65)
---------- ---------- ----------
Adjusted net income EUR 327 EUR 157 170
========== ========== ==========
--------------------------------
Year ended December 31,
--------------------------------
(In millions of euros) 2004 2003 % Change
---------- ---------- ----------
Net income (loss) (a)EUR 754 EUR(1,143) 1,897
Adjustments
Financial provisions and amortization
of deferred charges related to
bond issuances, facilities and
other (b) 18 (563) 581
Realized losses, net of financial
provisions taken previously (b) 5 503 (498)
Other non-operating, non-recurring
items (b) 236 (c) 154 82
---------- ---------- ----------
Subtotal impact on other financial
expenses, net of provisions (b)EUR 259 EUR 94 165
Loss (gain) on businesses sold,
net of provisions (a) 140 (602) 742
Veolia Environnement impairment (a) - 203 (203)
Goodwill amortization (a) 638 1,120 (482)
Impairment losses (a) 31 1,792 (1,761)
Income tax (d) (403) (1,112) 709
Minority interests in adjustments (39) (3) (36)
---------- ---------- ----------
Adjusted net income EUR 1,380 EUR 349 1,031
========== ========== ==========
(a) As reported in the consolidated statement of income.
(b) Breakdown of impact of adjustments on other financial expenses,
net of provisions:
-------------------------------------------
Quarter ended December 31, 2004
-------------------------------------------
Financial
provisions
and Other non-
amortization operating
of deferred Realized non- Net
financial losses recurring Impact
charges items
(In millions of euros) ---------- ---------- ---------- ----------
Premiums on call option
on Veolia Environnement
shares EUR - EUR - EUR 173 EUR 173
Mark-to-market of DuPont
shares 73 - - 73
Loss incurred on the
settlement of interest
rate swaps 57 - (56) 1
Loss incurred on the sale
of treasury shares to
employees exercising their
stock options - - - -
Provision on put option on
interest in Cegetel S.A.S
granted to SNCF - - - -
Amortization of deferred
charges related to bond
issuances, facilities
and other (4) - - (4)
High Yield Notes redemption
costs - - (47) (47)
Other (12) - (3) (15)
---------- ---------- ---------- ----------
Total EUR 114 EUR - EUR 87 EUR 181
========== ========== ========== ==========
-------------------------------------------
Year ended December 31, 2004
-------------------------------------------
Financial
provisions
and Other non-
amortization operating
of deferred Realized non- Net
financial losses recurring Impact
charges items
(In millions of euros) ---------- ---------- ---------- ----------
Premiums on call option
on Veolia Environnement
shares EUR - EUR - EUR 173 EUR 173
Mark-to-market of DuPont
shares 31 - - 31
Loss incurred on the
settlement of interest
rate swaps 67 - (56) 11
Loss incurred on the sale
of treasury shares to
employees exercising their
stock options - (5) - (5)
Provision on put option on
interest in Cegetel S.A.S
granted to SNCF (35) - - (35)
Amortization of deferred
charges related to bond
issuances, facilities
and other (70) - - (70)
High Yield Notes redemption
costs - - (350) (350)
Other (11) - (3) (14)
---------- ---------- ---------- ----------
Total EUR (18) EUR (5) EUR (236) EUR (259)
========== ========== ========== ==========
(c) Includes losses incurred on the settlement of put options on
treasury shares (-EUR 104 million) and fees relating to the
implementation of the group's refinancing plan (-EUR 50 million).
(d) Includes the neutralization of the deferred tax asset relating to
expected tax savings for fiscal year 2005 (EUR 492 million),
recognized as a result of Vivendi Universal's election for the
Consolidated Global Profit Tax System as of January 1, 2004. Only
tax savings in respect of fiscal year 2004 (EUR 464 million) are
included in adjusted net income.
APPENDIX V
VIVENDI UNIVERSAL
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(French GAAP, unaudited)
---------------------
December 31,
(In millions of euros) 2004 2003
---------- ----------
ASSETS
Goodwill, net EUR 15,555 EUR 17,789
Other intangible assets, net 7,640 11,778
Property, plant and equipment, net 5,063 6,365
Investments in equity affiliates 880 1,083
Investment in NBC Universal 696 -
Other investments in equity affiliates 184 1,083
Other investments 2,449 3,549
---------- ----------
Total long-term assets 31,587 40,564
---------- ----------
Inventories and work-in-progress 443 744
Accounts receivable and other 6,545 8,809
Deferred tax assets 1,219 1,546
Short-term loans receivable 73 140
Marketable securities 263 259
Cash and cash equivalents 3,158 2,858
---------- ----------
Total current assets 11,701 14,356
---------- ----------
TOTAL ASSETS EUR 43,288 EUR 54,920
========== ==========
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital EUR 5,899 EUR 5,893
Additional paid-in capital 6,109 6,030
Retained earnings and others 1,613 -
---------- ----------
Total shareholders' equity 13,621 11,923
Minority interests 2,959 4,929
Other equity 1,000 1,000
Deferred income 100 560
Provisions 2,236 2,294
Long-term debt 4,549 9,621
Other non-current liabilities and accrued
expenses 3,826 2,407
---------- ----------
28,291 32,734
---------- ----------
Accounts payable 10,046 12,261
Deferred taxes liabilities 3,207 5,123
Bank overdrafts and other short-term borrowings 1,744 4,802
---------- ----------
Total current liabilities 14,997 22,186
---------- ----------
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES EUR 43,288 EUR 54,920
========== ==========
FINANCIAL NET DEBT
----------------------------------
December 31,
----------------------------------
(In millions of euros) 2004 2003 Change
---------- ----------- -----------
Financial gross debt EUR 6,293 EUR 14,423 EUR (8,130)
Cash and cash equivalents (3,158) (2,858) (300)
---------- ----------- -----------
Financial Net Debt EUR 3,135 EUR 11,565 EUR (8,430)
========== =========== ===========
FINANCIAL NET DEBT MATURITY
---------------------------------------------------------
Payments due in
Total as of ---------------------------------------------
(In millions December After
of euros) 31, 2004 2005 2006 2007-2008 2009 2009
----------- ----------- ------- --------- ------- -------
Financial
gross debt EUR 6,293 EUR 1,744 EUR 957 EUR 2,497 EUR 639 EUR 456
Cash and cash
equivalents (3,158) (3,158) - - - -
----------- ----------- ------- --------- ------- -------
Financial Net
Debt EUR 3,135 EUR (1,414) EUR 957 EUR 2,497 EUR 639 EUR 456
=========== =========== ======= ========= ======= =======
APPENDIX VI
VIVENDI UNIVERSAL
CONSOLIDATED STATEMENT OF CASH FLOWS
(French GAAP, unaudited)
Year ended December 31,
-----------------------
(in millions of euros) 2004 2003
----------- -----------
Cash flow - operating activities:
Net income (loss) EUR 754 EUR (1,143)
Adjustments to reconcile net loss to net
cash provided by operating activities
Depreciation and amortization 2,587 4,759
Veolia Enviornnement impairment - 203
Financial provisions and provisions
related to businesses sold (a) (205) (1,007)
Gain on sale of property, plant and
equipment and financial assets 281 47
Income (loss) from equity affiliates (219) (72)
Deferred taxes (530) (842)
Minority interests 1,030 1,212
Dividends received from equity affiliates 410 59
Changes in working capital 690 670
----------- -----------
Net cash provided by operating activities 4,798 3,886
Cash flow - investing activities:
Capital expenditures (1,540) (1,552)
Proceeds from sales of property, plant,
equipment and intangible assets 239 477
Purchase of investments (407) (4,422)
Sale of investments 4,705 1,408
Net decrease (increase) in financial
receivables 13 140
Sales (purchase) of marketable securities (24) 49
----------- -----------
Net cash provided by (used for) investing
activities 2,986 (3,900)
Cash flow - financing activities:
Proceeds from issuance of borrowings and
other long-term liabilities 1,057 5,657
Principle payment on borrowings and other
long-term liabilities (3,448) (1,947)
Net increase (decrease) in short-term
borrowings and other (3,294) (7,259)
Net proceeds from issuance of common shares 18 71
Sales (purchases) of treasury shares - (98)
Cash dividends paid by consolidated
companies to their minority shareholders (1,850) (737)
----------- -----------
Net cash provided by (used for) financing
activities (7,517) (4,313)
Foreign currency translation adjustments 33 (110)
----------- -----------
Change in cash and cash equivalents EUR 300 EUR (4,437)
=========== ===========
Cash and cash equivalents
----------- -----------
Beginning EUR 2,858 EUR 7,295
=========== ===========
Ending EUR 3,158 EUR 2,858
=========== ===========
Supplementary information
Interests paid (all cash impacts related to
financing activities) EUR 430 EUR 621
Income tax paid EUR 580 EUR 1,242
(a) Comprises financial provisions reported in "Other financial
expenses, net of provisions" (EUR52 million as of December 31,
2004) and provisions reported in "Gain (loss) on businesses sold,
net of provisions" (EUR153 million as of December 31, 2004)
APPENDIX VII
VIVENDI UNIVERSAL
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO CASH
FLOW FROM OPERATIONS AND PROPORTIONATE CASH FLOW FROM OPERATIONS
(French GAAP, unaudited)
Reconciliations of net cash provided by operating activities to cash
flow from operations and proportionate cash flow from operations:
------------------------------
Year Ended December 31,
------------------------------
(in millions of euros) 2004 2003 % Change
---------- ---------- --------
Net cash provided by operating
activities as reported EUR 4,798 EUR 3,886 23%
Deduct:
Capital expenditures (1,540) (1,552)
Proceeds from sales of property,
plant, equipment and intangible
assets 239 477
---------- ----------
Capital expenditures, net of
proceeds (1,301) (1,075)
Add back:
Income tax: cash 580 1,242
Financing costs: cash 430 621
Other: cash (a) 240 (303)
---------- ---------- --------
Cash flow from operations (i.e.
before income tax, financing costs
and after restructuring costs) EUR 4,747 EUR 4,371 9%
Add:
Comparable basis adjustments (b) (724) (1,395)
---------- ---------- --------
Cash flow from operations on a
comparable basis EUR 4,023 EUR 2,976 35%
========== ========== ========
Add:
Cash flow attributed to minority
interests (1,572) (1,462)
---------- ---------- --------
Proportionate cash flow from
operations on a comparable basis EUR 2,451 EUR 1,514 62%
========== ========== ========
Cash flow from operations by
business segment on
a comparable basis:
------------------------------
Year ended December 31
------------------------------
(in millions of euros) %
2004 2003 Change
---------- ---------- --------
Canal+ Group 676 134 x5
Universal Music Group 755 463 63%
Vivendi Universal Games (18) (200) 91%
---------- ---------- --------
Media 1,413 397 x4
SFR Cegetel 2,241 2,153 4%
Maroc Telecom 723 686 5%
---------- ---------- --------
Telecom 2,964 2,839 4%
Holding & corporate (387) (242) -60%
Non core operations (c) 33 (18) na*
---------- ---------- --------
Total Vivendi Universal 4,023 2,976 35%
========== ========== ========
(a) Includes the EUR259 million premium paid to bondholders on
redemption of High Yield Notes.
(b) For a definition of comparable basis, please refer to Appendix I
of this document.
(c) Corresponds to Vivendi Telecom International (excluding Vivendi
Telecom Hungary, Kencell and Monaco Telecom), Vivendi Valorisation
and other non core businesses.
APPENDIX VIII
VIVENDI UNIVERSAL
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(French GAAP, unaudited)
---------------------------------
Common shares
-------------------
Additional
Paid-in
(In millions of euros) Number Amount Capital
----------- ---------- ----------
(Thousands)
Balance at December 31, 2003_________ 1,071,519 EUR 5,893 EUR 6,030
Net income for the year 2004 - - -
Reversal of foreign currency
translation adjustment related to
80% of the interests in VUE - - -
Foreign currency translation
adjustment - - -
Impact of the implementation of CRC
Rule 04-03 (b) - - -
Impact of the implementation of
Notice 2004-E issued by the Urgent
Issues Taskforce - - -
Conversion of ex-Seagram
exchangeables 1,148 6 85
Conversion of bonds, warrants, stock
options and issuances under the
employee stock purchase plan 1,115 6 12
Stripped shares (1,158) (6) (18)
Release of revaluation surplus and
other - - -
----------- ---------- ----------
Balance at December 31, 2004_________ 1,072,624 EUR 5,899 EUR 6,109
=========== ========== ==========
------------------------------------------------
Retained Earnings and Others
----------------------------------
Cumulative
Foreign
Currency
Retained Translation Shareholders'
(In millions of euros) Earnings Adjustment Total Equity
---------- ----------- ----------- -------------
Balance at December
31, 2003_____________EUR 3,750 EUR (3,750) EUR - EUR 11,923
Net income for the
year 2004 754 - 754(a) 754
Reversal of foreign
currency translation
adjustment related to
80% of the interests
in VUE - 2,105 2,105(a) 2,105
Foreign currency
translation
adjustment - (1,115) (1,115) (1,115)
Impact of the
implementation of CRC
Rule 04-03 (b) (58) - (58) (58)
Impact of the
implementation of
Notice 2004-E issued
by the Urgent Issues
Taskforce (29) - (29) (29)
Conversion of ex-
Seagram exchangeables (91) - (91) -
Conversion of bonds,
warrants, stock
options and issuances
under the employee
stock purchase plan - - - 18
Stripped shares 24 - 24 -
Release of revaluation
surplus and other 23 - 23 23
---------- ----------- ----------- -------------
Balance at December
31, 2004_____________EUR 4,373 EUR (2,760) EUR 1,613 EUR 13,621
========== =========== =========== =============
(a) In accordance with accounting principles, upon the divestiture of
80% of its interests in VUE, Vivendi Universal reclassified to net
income, in proportion to the divested economic interests, the
foreign cumulative translation adjustment related to VUE recorded
as a reduction of shareholders' equity. This reclassification
resulted in a loss of EUR 2,105 million, but had no impact on
shareholders' equity.
(b) As a result of the application of the CRC Rule 04-03 issued on May
4, 2004, Vivendi Universal fully consolidates as of January 1,
2004, certain Special Purpose Entities used for the defeasance of
real estate assets.
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