Indicators handbook

An Integrated Reporting Process Promoting Value Creation

Creating Value for Customers

Vivendi’s capacity to offer its customers original, quality content while at

the same time facilitating the options for enjoying it at will, is one of the

main sources of value creation for them. To satisfy this demand, the group

nurtures the curiosity and the diversity of its customers’ tastes, cultivates

their digital trust in a spirit of loyalty and transparency, welcomes their

creativity and ensures it protects and empowers its younger audience.

Diversity of artistic expression, pluralism of content and editorial innovation

are all criteria for satisfying customers 75% of whom feel that “Canal+ is

a channel that offers programs that you cannot see anywhere else” and

who, through their purchases, give Universal Music Group a better than 30%

share of the world’s music market.

This sharp difference characterizes the offers of Canal+ Group whether

this involves films, TV series or entertainment programs. The same is true

for the documentary channels that cover a diversity of themes and genres

(history, science, civilization, society, investigation, adventure, escape,

wildlife) and which, in 2015, offered 1,135 hours of programming to Canal+

subscribers. News is not to be outdone, as witnessed by the success of

Le Petit Journal

. This televised news program of the new generation, hosted

by young journalists, attracts new audiences who want to understand the

world’s current events and are interested in a national and international

news format that mixes humour, audacity and a taste for investigation. In

December 2015,

Le Petit Journal

reached its second best audience of the

season with 1,666,000 viewers.

Canalplay and myCanal broadcast this rich and original content package by

allowing subscribers to access thousands of films, complete series, digital

series, comedy and programming for a younger audience, at a time and

place of their choosing.

Committed to expanding its content on the Internet, in 2015, Canal+ created

a Digital Creation hub. This centre offers young talent in particular the

opportunity to expand their audience and benefit from assistance with

the production and promotion of short formats and original productions

developed specifically for the web. In Africa, in November 2015, Canal+

launched the MDR! (Mort de rire, or Dying of laughter) project in partnership

with CFI, the French media cooperation agency, to identify and train the

African talent of tomorrow to participate in the creation of new, short

comedy programs.

The diversity in the cultures of audiences is satisfied by the richness and the

variety of the Universal Music Group labels (which include Capital Music

Group, Island Records, Def Jam Recordings, Polydor, Blue Note Records,

Decca and Deutsche Grammophon). The digitization of UMG’s exceptional

catalog promotes heritage and encourages different generations to share

musical emotions. The artists signed by UMG in close to 60 countries

express themselves in 44 different languages. In 2015, the best UMG sales

were not only achieved by established international artists but also by new

musical discoveries and local artists.

UMG is increasing its initiatives for attracting talent in the countries where

the group has a presence. To this end, Abbey Road Studios in London, owned

by UMG, launched the Abbey Road Institute in 2015. Since September 2015,

this institute has offered a year of training aimed at students who will earn

a sound engineering and musical production diploma when they complete

their studies. In Africa, UMG partnered with the British director Richard

Curtis to organize a competition for young people to involve them in writing

the lyrics to the song “Tell Everybody” in connection with the campaign to

raise awareness of the new United Nations sustainable development goals.

Almost 6,000 young people sent their proposed lyrics via their mobile phone.

Vivendi’s strategic choice to bet on the growth opportunities offered by

digital technology must be supported by a rigorous policy concerning the

collection and management of personal data that preserves respect for

customers’ privacy. Vivendi has established instruments, such as the Data

and Content Protection Charter, adopted in 2008, or the best practice guide

concerning sensitive data. Vivendi takes care to verify that its partners

comply with the group’s values and rules of conduct in the countries where

the group has a presence. The protection and valuation of personal data are

the subject to certain reporting requirements based on precise indicators

by the subsidiaries of the company, which are then examined by the

Company’s Auditors. CSR (corporate social responsibility) criteria, associated

with this issue, are also included in the variable compensation of Vivendi

executives. This compliance creates value for the group’s customers, who

are increasingly better informed concerning the protection of their personal

data and more inclined to disclose aspects of their identity to companies

that have a clear and comprehensible policy.

Concerning this subject, special attention is paid to young audiences, with a

taste for musical, cinematographic or online video offers. At the request of

the CSR department, monitoring is conducted to obtain better knowledge of

the methods for processing the personal data of children and teenagers on

the web sites of the group’s subsidiaries offering media content intended for

this audience. This sustained vigilance makes it possible to anticipate the

measures for protecting minors included in the future European regulations

and to limit the potential reputation risks.

2.7. Creating Value for Customers

K E Y F I G U R E S *

REFERENCE CHANNEL

FOR FILMS FOR

86%

of subscribers

MILLION

“STREAMS”

EACH MONTH

CANAL+ GROUP:

RETENTION OF THE NF

CUSTOMER SERVICE

CERTIFICATION

Figures as of 12/31/2015.

Source: Canal+

(NF is the main French

quality mark certification

delivered by AFNOR)

Source: Canal+ Group

CANAL+ GROUP:

STREAMING OFFERS

PER SUBSCRIPTION

51%

OF UMG DIGITAL SALES

and 28% of UMG physical sales generated

by the catalog (works marketed for more

than two years)

NUMBER OF

LANGUAGES

sung by UMG artists

Source: UMG

(scope of 59 countries)

EXTRA-FINANCIAL INDICATORS HANDBOOK

2015