13
Annual Report -
2013
-
Vivendi
Group Profile
| Businesses | Litigation | Risk Factors
1
Financial Communication Policy and Value Creation
The Committee acts as a bridge between Vivendi’s Management and
individual shareholders and as such is kept constantly informed of
Vivendi’s latest news, as well as its various challenges and initiatives.
It meets at least three times a year and works on several topics,
including:
shareholder documentation: including letters and brochures;
online information: “Individual Shareholder” pages on the Group’s
website, use of social media; and
Group events: including General Meeting of Shareholders, financial
information meetings and “
Jeudi, c’est Vivendi
” themed meetings.
The Committee can be reached via email
It responds to questions from shareholders, who may also submit their
ideas or thoughts.
In 2010, a Shareholders’ Club was created for the purpose of organizing
information meetings and staging events for individual shareholders.
It is open to anyone who holds a share in Vivendi, in either registered
or bearer form.
Vivendi offers members of this Club a broad range of activities and
tours, such as the “
Jeudi, c’est Vivendi
” themed meetings, which are
aimed at providing an insight into the Group and its subsidiaries, as well
as events entitled “SFR and 4G,” “D8, spearhead of Canal+,” “EMI, a
legendary music label,” “Wengo, or everything you need to know about
consultation by phone” and “Canal+ beyond metropolitan France.”
Meetings are also regularly held in Paris and the provinces (Lille and
Marseille).
At the same time, training meetings with the
École de la Bourse
are
offered to the members, covering the theme of financial markets (the
new challenges of the Company’s societal responsibility).
The Shareholders’ Club has also invited its members on visits to the
Garnier and Bastille Operas, as well as to the Olympia (Paris), shows
at the
Sentier des Halles
in Paris, live broadcasts of opera in movie
theaters, premiere screenings of films produced by Studiocanal (Paris,
Lyon and Marseille), cinemas, festivals (Aix-en-Provence, La Vézère and
Marciac), as well as to shows offered by the partner associations of
Create Joy
, the Vivendi solidarity program.
In a more general sense, Vivendi is always attentive to its individual
shareholders and ready to listen to their needs. For example, a Twitter
account has been specifically created for individual shareholders.
The Individual Shareholders’ Information department can be reached
by phone on 805 050 050 (toll free in France) and +33 (0)1 71 71 34 99
(outside France), email
post (Vivendi,
Service Informations Actionnaires Individuels, 42, avenue de Friedland,
75380 Paris Cedex 08, France).
1.4.3.
Value Creation in 2013
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1.4.3.1. Financial results
In 2013, Vivendi operated in a difficult economic and competitive
environment, which affected its activities in France. Nevertheless, the
Group posted a solid financial performance, with an adjusted operating
income of €2.4 billion, and a significantly positive contribution from all
its business units.
As of December 31, 2013, Vivendi’s Financial Net Debt totaled
€11.1 billion. Including the sale of the Maroc Telecom Group, which
is expected to be completed shortly, Financial Net Debt would total
€6.9 billion as of December 31, 2013. This improved financial situation is
the result of several strategic decisions, including the Group’s refocus on
media and content, and the sales of Activision Blizzard and the Maroc
Telecom Group. As of that date, the average economic maturity of the
Group’s debt was approximately four years and Vivendi had almost
€3.6 billion in available credit lines. Maintaining an investment-grade
credit rating allows shareholders to benefit from the leverage effect
created by a debt level that is well under control in terms of both volume
and cost.
■
■
1.4.3.2. Share price
Vivendi shares are listed on Compartment A of Euronext Paris (ISIN code
FR0000127771). As of December 31, 2013, Vivendi had the thirteenth
largest stock market capitalization in the CAC 40 index, and the largest
capitalization in the Stoxx Europe 600 Media index.
At the close of 2013, Vivendi’s stock price was €19.155, up 13%
over year-end 2012, and 20.1% on a dividend-reinvested basis, as a
result of the most recent strategic decisions taken during the year.
By comparison, the CAC 40 index closed in 2013 up 18% (+22.2%
with dividends reinvested), spurred by prospects of economic
recovery in Europe in the second half of the year. The telecom sector
regained investor confidence, showing growth of 32.1% (+38.9% with
dividends reinvested, after a decline of 4% in 2012), following more
positive signs from the European Commission regarding consolidation.
This was illustrated by the merger between E-Plus / KPN and Telefonica
Deutschland in Germany, as well as by rumors of an interest on the part
of AT&T in acquiring one or more operators in Europe.
