Annual report 2014

Group Profile

| Businesses | Litigation | Risk Factors

Financial Communication Policy and Value Creation

Moreover, in 2010, Vivendi was one of the first companies in the CAC

40 to introduce CSR objectives into the variable compensation of its

executives, a best practice recognized by the AMF (see Chapter 2,

Section 1.2 of this Annual Report).

In 2014, Vivendi was ranked second among European companies in the

media sector by the non-financial ratings agency Vigeo, which praised our

CSR performance. Once again, the group has been included in the main

socially responsible investment (SRI) indices worldwide.

This very positive evaluation of the CSR policy provides confidence to

investors in their choice of investment.

1.4. Financial Communication Policy and Value Creation

1.4.1.

Investment Policy

To continue creating value, the group needs to increase the profitability

of its operations. This requires investment and innovation. Taking this

into account, Vivendi bases its investment decisions on several criteria:

expected growth resulting from the investment, as well as its impact

on the growth of adjusted net income per share and on cash flow;

the profitability of the investment against the assessed financial risk;

in-depth assessment of non-financial risks (e.g., geopolitical risks and

currency risks).

All investment projects are reviewed first by the Investment Committee

and then by Vivendi’s Management Board. The most significant

investments are reviewed by the Strategy Committee, and are then

subject to approval by the Supervisory Board.

For major transactions, a systematic post-acquisition audit is performed

to compare actual operational and financial results with the assumptions

made during the investment decision process. The conclusions drawn

from auditing these transactions are used to promote best practices

within the group.

1.4.2.

Financial Communication Policy

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1.4.2.1. Objectives and Means of Vivendi’s

Financial Communications

Vivendi’s financial communications have a clear objective of providing

fair, accurate and transparent information on the group’s position to all

shareholders, analysts and investors. The group ensures that its financial

communications comply with laws, standards and procedures applicable

in France, including the French Financial Security Act, IFRS (International

Financial Reporting Standards), and benchmarks set out in the COSO

(Committee of Sponsoring Organizations of the Treadway Commission)

report.

Vivendi’s Investor Relations department maintains close, permanent

relationships with analysts at brokerage firms and investment funds.

It also continually feeds and updates the Investors/Analysts pages at

www.vivendi.com, wh

ich are aimed primarily at institutional investors.

Vivendi also provides financial information to institutional investors

through meetings organized in the main global financial markets and

through the participation of executives from the head office and group

businesses in investor conferences.

A total of 503 events (including road shows, investor conferences,

analyst meetings and meetings at Vivendi’s head office or at the offices

of subsidiaries) taking place mainly in Europe and the United States,

were organized in 2014. These were an opportunity for executives from

Vivendi and its subsidiaries to meet representatives from 348 financial

institutions and present the group’s results and outlook.

Lastly, Vivendi is developing

ad hoc

communications for analysts and

investors who specialize in socially responsible investments.

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1.4.2.2. Communication with Individual Shareholders

Vivendi currently has 298,000 individual shareholders, holding 5.14%

of its share capital (employee shareholders together hold 3.11%). The

group provides them with tailored information and disclosure. The priority

of Vivendi’s Individual Shareholders’ Information department is to give

the group’s shareholders close and constant support, provide them with

information and understand their expectations. Vivendi has implemented

several means of communication with shareholders.

In 2009, a Shareholders’ Committee was created. It has ten members,

whose terms of office are for a renewable two-year term. The committee

acts as a bridge between Vivendi’s management and individual

shareholders. The committee’s membership reflects the diversity of the

shareholder ownership. It is kept up to date on the group’s strategy and

latest news, as well as its various challenges and initiatives. Its main

tasks focus on the Shareholders’ Meeting and the communication tools

used for individual shareholders (including information sessions and

newsletters). It meets at least three times a year.

A Shareholders’ Club was also established in 2010. It organizes

information sessions and training events related to the group’s

businesses. It also strives to keep shareholders informed in an easy and

straightforward manner. It is open to anyone who holds a Vivendi share,

in either registered or bearer form.

The Club offers a broad range of activities:

“

Jeudi, c’est Vivendi

” themed meetings whose purpose is to provide

shareholders with an insight into the group’s businesses. In 2014 -

these meetings focused on the financing policy of Vivendi, GVT and

Canalplay (unlimited video-on-demand for Canal+ Group subscribers).

These meetings are held in Paris and the rest of France;

Annual Report 2014