Annual report 2014

Group Profile

| Businesses | Litigation | Risk Factors

Investments

1.5. Insurance

Vivendi holds centralized insurance coverage for risks common to all

its subsidiaries. Plans have been established by the group’s Insurance

department with major French and international insurers, combined with

coverage provided by each subsidiary for its specific risks. These policies

are subject to regular competitive bidding to allow the group to benefit

from optimal technical and financial conditions.

These insurance plans supplement the group’s risk management policy.

With respect to the Property Damage/Business Interruption plan, regular

inspections of the group’s main facilities, in France and abroad, are

performed by the insurers, allowing them to better assess the risks

covered, and enabling Vivendi to optimize the conditions for negotiating

the corresponding insurance policies. This risk management policy also

includes resumption of operations or backup plans to address incidents

affecting the nerve center of a particular business unit, as well as

environmental protection measures.

The main insurance plans obtained by Vivendi on behalf of its subsidiaries

are the following: property damage and business interruption, civil

liability and workplace accidents.

1.5.1.

Property Damage and Business Interruption

General insurance programs for the entire group have been contracted

for a total coverage of up to €400 million per loss. These programs cover

risks of fire, water damage, natural events, terrorism (depending on the

legal restrictions in each relevant country or State) and also business

interruption resulting from these events. In general, the applicable excess

per claim is €250,000.

1.5.2.

Civil Liability

Business and product civil liability plans for the entire group have also

been established with a total cumulative coverage of €150 million

per year. This coverage amount supplements the various top-line

policies subscribed directly by the subsidiaries (i.e., Canal+ Group,

Universal Music Group and GVT), in the amount of 2 to 16 million euros

or US dollars, as applicable.

1.5.3.

Workplace Accidents

Certain plans are specific to operations in the United States, particularly

those to cover occupational illness and workplace accidents, where

the employer is responsible for the insurance. Workers’ compensation

programs have been established to comply with obligations required by

the laws of various States.

1.6. Investments

Vivendi’s main investments and divestments include acquisitions

or disposals of financial investments, as described in Section 1.1 of

the Financial Report, as well as investments in content and capital

expenditure, as described in Section 3 of the Financial Report. The impact

of these investments and divestments on Vivendi’s financial position is

described in Section 5 of the Financial Report. The impact of the financial

divestments on Vivendi’s Consolidated Statement of Financial Position is

described in Note 3 to the Consolidated Financial Statements, and the

impact of both investments in content and capital expenditure on the

Consolidated Statement of Financial Position is described in Notes 10,

11, and 12 to the Consolidated Financial Statements. Moreover, the

contractual commitments made by Vivendi for the acquisitions of financial

investments, as well as investments in content and capital expenditure,

are described in Note 25 to the Consolidated Financial Statements. The

geographic distribution and breakdown of capital expenditure by business

are presented in Note 2 to the Consolidated Financial Statements. The

group is not planning any future investments for which Management has

already made firm commitments, other than those described in Note 25

to the Consolidated Financial Statements.

Annual Report 2014