12
Annual Report -
2013
-
Vivendi
Group Profile
| Businesses | Litigation | Risk Factors
1
Financial Communication Policy and Value Creation
Vivendi is one of the largest companies in the CAC 40 to have introduced
CSR objectives into the variable compensation of its senior executives,
a good practice recommendation of the French securities regulator, the
AMF (please see Chapter 2, Section 1.2 of this document).
In 2013, Vivendi was yet again ranked first among European media
sector companies by the non-financial ratings agency Vigeo, which
praised the performance of its CSR policy. The Group also renewed
its status on the world’s largest Socially Responsible Investment (SRI)
indices.
This highly positive assessment of Vivendi’s CSR policy provides strong
reassurance to investors in relation to 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 investment, as well as its impact
on the growth of Adjusted Net Income per share and on cash flow;
the profitability of each investment against the assessed financial
risk; and
an in-depth assessment of non-financial risks (e.g., geopolitical or
currency risks).
All investment projects are firstly reviewed 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 this audit are used to promote best practices within the Group.
1.4.2.
Financial Communication Policy
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1.4.2.1. Goals and means of Vivendi’s financial
communications
Vivendi’s financial communications has a clear goal: to provide all
shareholders, analysts and investors with fair, accurate and transparent
information on the Group’s position, while ensuring that these
communications comply with laws, standards and procedures applicable
in France, including the French Financial Security Act, the International
Financial Reporting Standards (IFRS), and benchmarks set out in the
Committee of Sponsoring Organizations of the Treadway Commission
(COSO) report.
Vivendi’s Investor Relations department, based in Paris and New York,
forges close and long-lasting relationships with analysts at brokerage
firms and investment funds. This department provides the analysts with
information about the Group on a regular basis so that the financial
markets can anticipate events and have a better understanding of their
impact on the Group’s current and future performance. At the same time,
the Investor Relations department continually updates the Investors /
Analysts pages on the Vivendi website
ich are
aimed primarily at institutional investors.
Vivendi also provides financial information to institutional investors
through meetings organized in the main global financial centers and
through the participation of executives from the head office and Group
businesses in investor conferences.
In 2013, a total of 460 events (e.g., road shows, investor conferences
and meetings at Vivendi’s head office or at the offices of subsidiaries)
were organized in Europe, the United States and Asia. These provided
an opportunity for executives from Vivendi and its subsidiaries to meet
representatives from 480 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 investment.
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1.4.2.2. Communication with Individual
Shareholders
Vivendi currently has 300,000 individual shareholders (excluding
employee shareholders), holding approximately 6.5% of its share capital
(plus 3.54% for employee shareholders). The Group provides these
shareholders with information tailored to reflect their commitment and
level of investment. The priority of Vivendi’s Individual Shareholders’
Information service is to give shareholders close and constant support,
provide them with information and understand their expectations.
In 2009, a Shareholders’ Committee was created. With ten members, its
composition reflects the diversity of the Group’s individual shareholding.
