14 / 71
An Integrated Reporting Process Promoting Value Creation
Creating Value for Shareholders
Creating shareholder value is central to Vivendi’s strategy, with a
long-term view. This created value is measured in particular through the
group’s financial and extra-financial performance. It is accompanied by an
active communication policy that is essential for establishing a regular
dialog with Vivendi’s management, sharing the strategy and commenting
on the achievements of the group’s subsidiaries. The integrated reporting
process illustrates this dynamic.
In a context in which the economic models of its businesses are in
transition, Vivendi has achieved financial performances consistent with
the objectives announced in early 2015. Sales grew by 6.7% (1.4% at
constant currency and perimeter), the current operating margin is 10.2%
(at constant currency and perimeter) and adjusted net income reached
697 million euros, up 11.3%.
As of December 31, 2015, the group had a net cash position of €6.4 billion
compared to €4.6 billion at year-end 2014. This position is primarily the
result of finalizing the group’s restructuring with the sale of its remaining
20% interest in Numericable-SFR, as well as the sale of GVT in Brazil and
the payment in April of a dividend of €1 per share, and the payment in
June of an interim dividend of €1 per share.
Vivendi shares are listed in compartment A of Euronext Paris,
code ISIN FR0000127771. As of December 31, 2015, Vivendi was the
seventeenth weighted stock of the CAC 40 index and the second weighted
stock on the Stoxx Europe 600 Media index.
The Vivendi stock market price ended 2015 at €19.86, down 4.0%
compared to 2014, and up 4.4% based on reinvested dividends.
By comparison, the Stoxx Europe Media index was up 12.2%
(+15.3% reinvested dividends) and the CAC 40 index grew by 8.5%
(+11.9% reinvested dividends).
Vivendi’s financial communication is based on the principle of providing
precise, transparent and fair information concerning the group’s position
to all shareholders, analysts and investors. The group ensures that it
complies with all the laws, regulations, standards and procedures in force
in France: the French financial security act, IFRS (International Financial
Reporting Standards) and the standards defined in the COSO (Committee
of Sponsoring Organisation of the Treadway Commission) report. It also
reports on the implementation of French laws and regulations (Grenelle II)
or international standards that frame its social responsibility.
The Vivendi Investor Relations department maintains a close and ongoing
dialog with the analysts of brokerage firms and investment funds. It
also continuously adds to and updates the Investors/analysts section of
the corporate web site, which is intended in particular for institutional
investors. In cooperation with the Corporate Social Responsibility (CSR)
department, it organizes meetings with analysts and investors interested
in the group’s CSR policy.
Vivendi’s financial communication to institutional investors also translates
into the organization of meetings about the world’s main financial markets,
and the participation of executives from corporate headquarters and from
the group’s subsidiaries at investor conferences.
In all, in 2015, 546 “events” (including roadshows, investor conferences,
meetings at Vivendi corporate headquarters or at its subsidiaries and
analyst contacts) were organized in Europe and in the United States. They
allowed the management teams of Vivendi or of its subsidiaries to meet
with the representatives of 382 financial institutions to present to them
the group’s results and outlook.
Furthermore, Vivendi is engaged in a close dialog with its individual
shareholders who hold 4.9% of the group’s capital (the employee
shareholders own 3.3%). They benefit from communication dedicated
specifically to them. Staying close to them, keeping them informed and
understanding their expectations are the priorities of the group’s Individual
Shareholders Information department.
On the group’s website, there is a section specifically aimed at individual
shareholders, which includes “General meeting,” “In pictures,” “Audio
news,” “Letters to the shareholders,” “Shareholders’ Committee,”
“Agenda,” “Press releases,” “Shareholders’ club,” “Shareholder’s
passbook,” “Market prices” and “Contact us” pages. A toll-free telephone
number and a Twitter account have been created specifically to best meet
their expectations.
At the 12
th
edition (2015) of the Grands Prix for corporate governance
organized by the AGEFI (
Agence économique et financière
), Vivendi was
awarded 3
rd
place for “Shareholder democracy, information transparency
and communication quality.”
2.6. Creating Value for Shareholders
10.2%
INCOME FOR OPERATIONS
MARGIN IN 2015
(at constant currency
and perimeter)
11.3%
GROWTH OF ADJUSTED
NET EARNINGS
IN 2015
0.51
euro
ADJUSTED NET INCOME
PER SHARE 2015
3
euros
DIVIDEND PER SHARE
FOR 2015
K E Y F I G U R E S *
*
Source: Vivendi.
EXTRA-FINANCIAL INDICATORS HANDBOOK
2015
14