Filed by Vivendi Universal, S.A.
Pursuant to Rule 425 under the
Securities Act of 1933
Deemed filed under Rule 14a-12
Subject Company: MP3.com, Inc.
Exchange Act File Number of
Subject Company: 000-26697
This presentation contains "forward-looking statements" as that term is defined
in the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are not guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a number of risks
and uncertainties, many of which are outside our control, including but not
limited to: the risk that recently acquired operations will not be integrated
successfully; that the synergies expected to be created as a result of recent
acquisitions will not materialize; that Vivendi Universal, S.A. ("Vivendi
Universal") will be unable to further identify, develop and achieve success for
new products, services and technologies; that Vivendi Universal will face
increased competition and that the effect on pricing, spending, third-party
relationships and revenues of such competition will limit or reduce Vivendi
Universal's revenue and/or income; that Vivendi Universal will be unable to
establish and maintain relationships with commerce, advertising, marketing,
technology, and content providers; and that Vivendi Universal will be unable to
obtain or retain, upon acceptable terms, the licenses and permits necessary to
operate and expand its businesses; as well as the risks described in the
documents Vivendi Universal has filed with the U.S. Securities and Exchange
Commission. Investors and security holders are urged to read those documents at
the Commission's web site at www.sec.gov. Those documents may also be obtained
free of charge from Vivendi Universal.
Vivendi Universal and MP3.com will file a proxy statement/prospectus and other
documents regarding their proposed merger with the U.S. Securities and Exchange
Commission. Investors and security holders are urged to read the proxy
statement/prospectus when it becomes available, because it will contain
important information about Vivendi Universal and MP3.com and the proposed
transaction. A definitive proxy statement/prospectus will be sent to security
holders of MP3.com seeking their approval of the transaction. Investors and
security holders may obtain a free copy of the definitive proxy
statement/prospectus (when available) and other documents filed by Vivendi
Universal and MP3.com with the SEC at the SEC's web site at www.sec.gov.
MP3.com, Vivendi Universal and their respective directors, executive officers
and certain members of management and other employees may be deemed to be
participants in the solicitation of proxies of MP3.com stockholders to approve
the proposed merger. Such individuals may have interests in the merger,
including as a result of holding options or shares of MP3.com stock. A detailed
list of the names, affiliations and interests of the participants in the
solicitation will be contained in the proxy statement that will be filed by
MP3.com with the SEC.
The definitive proxy statement/prospectus and other documents may also be
obtained free of cost by directing a request to the following Investor
Relations contacts:
###
Media Relations: Investor Relations:
Paris Paris
Catherine Gros Ariane de Lamaze
011-33-1-71-71-1711 011-33-1-71-71-1084
Alain Delrieu New York
011-33-1-71-71-1341 Eileen McLaughlin
Antoine Lefort 212.572.8961
011-33-1-71-71-1180 For MP3.com:
New York Karen Silva
Anita Larsen 858-623-7222
212.572.1118
Mia Carbonell
212.572.7556
For MP3.com:
Greg Wilfahrt
858-623-7280
VIVENDI
UNIVERSAL
May 2001
[GRAPHIC OMITTED]
IMPORTANT LEGAL DISCLAIMER
This document contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These statements are based on management's current expectations
or beliefs and are subject to a number of factors and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. The following factors, among others, could cause
actual results to differ materially from those described in the
forward-looking statements: inability to identify, develop and achieve success
for new products, services and technologies; increased competition and its
effect on pricing, spending, third-party relationships and revenue; inability
to establish and maintain relationships with commerce, advertising, marketing,
technology, and content providers. Vivendi Universal does not undertake any
obligation to provide updates or to revise any forward-looking statements.
Investors and security holders are urged to read documents filed with the SEC
by Vivendi Universal because they contain important information. All these
documents may be obtained at www.sec.gov or directly from Vivendi Universal.
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
2
AGENDA
----------------------
o Overview of the Group
o A Globally Integrated Group
o Q1 2001 Results
o FY2000 Results
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
3
VIVENDI
UNIVERSAL
OVERVIEW OF THE GROUP:
The Second Largest
World Media Group
[GRAPHIC OMITTED]
4
WHO ARE WE?
----------------------
[euro sign] In millions, 2000 proforma
Communication Sales: 24,324 VIVENDI Total Sales: 52,521
Communication EBITDA: 3,329 UNIVERSAL Total EBITDA: 7,213
-------------------------------------------------------------------------------------------- - - - - - - - - - -
| | | | | |
------- ---------- --------- ----- -------- |
| MUSIC | |PUBLISHING| |TV & FILM| |TELCO| |INTERNET| VIVENDI
------- ---------- --------- ----- -------- Environnement
Universal Vivendi Universal Canal + Group; Cegetel: SFR (Mobile) Vizzavi
Music Group Publishing Universal Pictures: "7" (fixed) (JV with Vodafone)
Universal Recreation: Vivendi Telecom VU Portals
USA Network, Inc* International
SALES: 6,611 SALES: 3,600 SALES: 8,795 SALES 5,270 SALES: 48 SALES: 26,512
EBITDA: 1,157 EBITDA: 531 EBITDA: 771 EBITDA: 1,303 EBITDA: -184 EBITDA 3,544
#1 Worldwide; A European Leader; Leading Pan-European #1 Private #1 Multi-access World leader in
22.5% market share #1 Worldwide in Pay TV provider; operator in France; portal with potential environmental
multimedia World's largest film 34% market share subscriber base services
education entertainment library; of 90m (Mobile, PC,TV)
#2 Theme park
operator in the world
Content Access Aggregation
*Equity Investment (43%)
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
5
VIVENDI
UNIVERSAL
CONTENT
Consistent Growth
Strong Cash Flow
[GRAPHIC OMITTED]
MUSIC
----------------------
|X| #1 Worldwide, With Strong Global and Local Content
o 22.5% global market share (FY 00)
o 28% market share for current albums in North America
|X| Worldwide Coverage
o 44% of 2000 sales in North America, 39% in Europe, 13% in Asia Pacific
and 4% in Latin America
[X| 67 Albums Sold Over 1 Million Copies, 5 Albums Sold Over 5 Million Copies
in 2000
|X| Capitalize on New Business Opportunities, With Our DUET JV With Sony,
Distributed by Yahoo!: Digital Download, Subscription Services, Pay Per
Play, Wireless...to Start Early Q3 2001
|X| 2000 EBITDA: euro 1,157m
|X| Low Risk/High FCF (approx. 70% OF EBITDA)
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
7
PUBLISHING
----------------------
|X| Among the World Leaders in Publishing
o #2 WORLDWIDE IN PC-BASED GAMES, #1 IN IN ONLINE GAMES
O WORLD LEADER IN EDUCATIONAL CONTENT FOR PC
O EUROPEAN LEADER IN INFORMATION
O #1 WORLDWIDE FOR DRUG INFORMATION
#3 WORLDWIDE FOR MEDICAL INFORMATION
|X| Focusing on Growth Markets With Multi-platform Applications (EDUCATION,
HEALTHCARE, BUSINESS INFORMATION, LOCAL SERVICES)
|X| Positioned for the Digital Revolution (PC GAMES, E-LEARNING)
|X| 2000 EBITDA: euro 531m
|X| Low Risk/High FCF (approx. 80% OF EBITDA)
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
8
FILM AND RECREATION
----------------------
|X| World's Largest Film Entertainment Library
o > 10,000 films and 30,000 TV hours (Universal + Studio Canal)
|X| Significant Expansion of Library Sales From New Formats
o DVD & Digital distribution
|X| Universal Pictures' Ongoing Turnaround:
Film and Recreation 2000 EBITDA: euro 241m
|X| Risk Management
o Cap on film investments
|X| Successful Opening of New Theme Park
o Universal Studios Osaka theme park in March 2001
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
9
VIVENDI
UNIVERSAL
ACCESS
Rapid Growth
Strong EBITDA Leverage
[GRAPHIC OMITTED]
TELECOMMUNICATIONS
CEGETEL
----------------------
|X| Cegetel is #1 Private Operator in France With Over 12m Customers
o 10.6m SFR mobile users
o 2.6m fixed lines
o 11,000 data sites and 35,000 voice sites for the corporate market
o First alternative long distance carrier in France: 70m mn/day
|X| Fast Growing Penetration Rates
o 52% mobile penetration in France
o Targeting > 65% in 2 years
|X| A Fixed Cost Industry
-> Leverage on EBITDA
|X| 2000 EBITDA = euro 1,303m (compared to euro 494m in 1999)
|X| UMTS Financing Completed With a Peak Debt to Equity Ratio of 1:1 in 2002
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
11
PAY TV
CANAL+
----------------------
|X| Leading Pan-European Multi-service Television Provider
o 15.3m subscriptions in 11 countries
o 5.3m digital subscribers up 32% in 2000
|X| Europe's Third Largest TV and Film Library
|X| Exclusive, Long-term Agreements for Sports Programming
|X| Continuing Growth From Canal+ Business Model Replicated Outside France
|X| Costs Are Fixed -> EBITDA Leverage
|X| Digitalization Creates Additional Leverage on Average Revenue Per User
(ARPU)
o Analog ARPU (current) : euro 28 per month
o Digital ARPU (current) : euro 46 per month
o Multi-services ARPU (expected) : euro 60 per month
|X| 2000 EBITDA: euro 507m
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
12
VIVENDI
UNIVERSAL
AGGREGATION
Strong Assets
New Business Models
[GRAPHIC OMITTED]
INTERNET
----------------------
|X| VIVENDI NET
o Grow thematic portals (entertainment, education, information and
transaction)
o Grow and create enablers, capitalizing on the critical mass of the
Vivendi Universal network
o Develop new profitable business models through our existing customer
bases (-> lower acquisition costs), and less sensitive to advertising
cycle
|X| VIZZAVI
o 50/50 JV with Vodafone
o Our goal is to create the leading multi-access European portal
|X| Not a pure PC portal
|X| Seamless services between mobile, PC and TV (unified messaging
services)
o 90m potential multi-platform subscribers (TV, MOBILE, PC)
o European mobile market will be broadband by mid year (GPRS)
o Vivendi Universal as preferred content supplier of Vizzavi
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
14
VIVENDI
UNIVERSAL
A GLOBALLY
INTEGRATED GROUP
[GRAPHIC OMITTED]
MISSION STATEMENT
A GLOBAL COMPANY FOR THE DIGITAL AGE
----------------------
Vivendi Universal will be the world's preferred creator and provider of
personalized information, entertainment and services to consumers
anywhere, at any time, and across all distribution platforms and devices
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
16
WE WILL BENEFIT FROM
DIGITAL CONVERGENCE
----------------------
|X| The Convergence Is Consumer-driven
o Localized services
o Multi-accessibility
o Rich and personalized content
o Personalization must be easy
|X| The Move Is Technology-enabled
o Broadband access channels to multiply
o Devices are mutating to match consumers' needs (portability, storage,
etc.)
|X| Premium Content Is Essential
o Practical information for day-to-day life
o Entertainment content (music, film, games)
o Education
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
17
VERTICAL INTEGRATION IS KEY
----------------------
|X| Vertical Integration Is Essential to Maximize Shareholder Value
o New businesses will be introduced to the market faster
o Ability to keep most of the margin of the value-chain within the group
|X| Vertical Integration Does Not Mean Exclusivity
o Content does not maximize its value if distribution channels are
limited and vice versa
o Premium content to contribute to differentiation through windowing
policies and early cooperation
|X| A Consumer Centric Century
o Personalization
o Customization
o Localization
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
18
STRONG FINANCIAL ECONOMICS
----------------------
|X| CONTENT
Consistent Growth + Strong Cash Flow Generation
|X| ACCESS
Rapid Growth + Fixed Costs = Strong EBITDA Leverage
|X| AGGREGATION
New Business Models and Revenue Streams Based on Europe's #1 Multi-access
Distribution Platform and Leading Content Supplier
+
SYNERGIES: COSTS AND REVENUES
=
A UNIQUELY POSITIONED COMPANY WITH
EXTRAORDINARY GROWTH
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
19
VIVENDI
UNIVERSAL
Q1 2001 OPERATING RESULTS
[GRAPHIC OMITTED]
Q1 HIGHLIGHTS FOR MEDIA
AND COMMUNICATIONS
----------------------
|X| Revenues Up 13.4% Excluding USG Films to euro 5bn
Total Revenue Is Up 10% to euro 5.9bn
|X| EBITDA Grew 112% to euro 900m
|X| By Business
o Music EBITDA was up 15% to euro 180m, reflecting strong market share
and a revenue increase of 3%
o Telecom EBITDA tripled to euro 433m and revenues were up 30%
o TV and Film EBITDA more than doubled to euro 284m
Revenues were up 13%, excluding USG Film
o Publishing EBITDA increased 16% with revenues up 5.5%
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
21
Q1 2001 DIVISIONAL HIGHLIGHTS
----------------------
2001 2000
ACTUAL PROFORMA
------ --------
REVENUES
Music 1,446 1,400
Publishing 817 775
TV & Film 2,077 2,008
Telecom 1,495 1,153
Internet 19 2
----- -----
Media and Communications 5,854 5,338
Holding & Corporate - 2
----- -----
TOTAL MEDIA & COMMUNICATIONS 5,854 5,340
----- -----
EBITDA
Music 180 157
Publishing 103 88
TV & Film 284 121
Telecom 433 140
Internet (49) (18)
----- -----
Media and Communications 951 488
Holding & Corporate (51) (63)
TOTAL MEDIA & COMMUNICATIONS 900 425
----- -----
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
22
VIVENDI
UNIVERSAL
2000
FY RESULTS
[GRAPHIC OMITTED]
VIVENDI UNIVERSAL 2000:
KEY MESSAGES
----------------------
|X| Outstanding Growth in 2000 for Communications on a Proforma Basis: +16% TOP
LINE AND +68% AT EBITDA LEVEL (EXCL. FOREX)
|X| In 2000, VU Exceeded Its Ambitious EBITDA Targets Despite Difficult Markets
and Economic Slowdown
(PF: euro 3.3bn for Communications; Total PF: euro 7.2bn)
|X| Highest Historical Net Income of euro 2.3bn
|X| Very Strong Balance Sheet (Net Debt PF for Communications of euro 3.4bn)
|X| Integration Ahead of Schedule
|X| Strong, Focused, Incentivized Management in Place
|X| More Confident Than Ever That VU Will Achieve Its Aggressive Growth Targets
for 2001 2000
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
24
VIVENDI
UNIVERSAL
2000 PROFORMA
[GRAPHIC OMITTED]
VIVENDI UNIVERSAL 2000
PROFORMA
----------------------
euro in billions 2000 PF 1999 PF % PF
---------------------------------------------------------------------------
|x| REVENUE 52.5 44.0 19%*
|x| EBITDA** 7.2 4.9 48%*
|x| OPERATING INCOME** 3.1 1.9 68%
---------------------------------------------------------------------------
*Respectively excluding forex: +15% and +43%
**EBITDA and operating income after holding costs
|x| BOTH STRONG GROWTH AND OUTSTANDING OPERATING LEVERAGE FOR 2000 PROFORMA
o Excluding: USAi: @100%:2000 Revenues euro 5.1bn; 2000 EBITDA euro
0.8bn
o Attributed Recreation: Revenues: euro 1bn; EBITDA: euro 0.3bn
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
26
VIVENDI UNIVERSAL 2000
PROFORMA COMMUNICATIONS
----------------------
euro in billions 2000 PF 1999 PF % PF
------------------------------------------------------------------------------
|x| REVENUE 24.3 20.3 20%*
|x| EBITDA after holding costs 3.3 1.9 74%*
|x| Operating Income after holding costs 1.0 0.2 X4.2%
------------------------------------------------------------------------------
*RESPECTIVELY EXCLUDING FOREX: +16% AND +68%
PROFORMA EBITDA OF VIVENDI UNIVERSAL COMMUNICATIONS OF EURO 3.3BN ABOVE
GUIDANCE GIVEN IN OCTOBER 2000 BY EURO 129M
o Excluding: USAi: @100%: 2000 Revenues euro 5.1bn; 2000 EBITDA euro 0.8bn
o Attributed Recreation: Revenues: euro 1bn; EBITDA: euro 0.3bn
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
27
A VERY SOUND B/S STRUCTURE
----------------------
|X| Shareholders Equity: euro 57bn
o Total Equity: euro 66bn
|X| Net Financial Debt
o VE euro 13.1bn, sustainable, 4.7 times cash flow, rating BBB+
o ProForma VU Communications euro 3.4bn after Spirits and Wine disposal
|X| 0.7 times expected 01 EBITDA
|X| Further potential for asset disposals or arbitrages, of which BskyB
mandatory before YE02 (euro 6.3bn value before tax at current market
prices)
|X| Cash Flow: euro 3.4bn vs. euro 2.4bn in 1999
(excluding working capital changes)
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
28
VIVENDI
UNIVERSAL
DIVISIONAL HIGHLIGHTS
FY2000 and 2001 Outlook
[GRAPHIC OMITTED]
MUSIC OPERATING PERFORMANCE
2000 AND 2001 OUTLOOK
| % PF [x] Increased global leadership with
euro in millions 2000 PF 1999 PF | constant worldwide market share up 0.7%
| forex to 22.5%. Universal/Polygram
-----------------------------------------------------------------|------------- integration completed, ahead of
| targets
|x| Net Revenues 6,611 5,705 | 5%
|x| EBITDA 1,157 840 | 24% [x] Global market share to expand again
| in 2001, particularly outside the U.S.
[x] EBITDA Margin 18% 15% |
-----------------------------------------------------------------|------------- [x] 2001: TARGET TOP LINE GROWTH +5%/6%,
| AND DOUBLE DIGIT EBITDA GROWTH
|x| Global Maret Share 22.5% 21.8% | 0.7%
| [x] Synergies with VU's mobile unit,
[x] Current Albums U.S. 28.0% 27.3% | 1.0% Vizzavi and VUP (games) to
[x] Current Albums Europe 26.0% 23.3% | 2.7% materialize in 2001
|
-----------------------------------------------------------------|------------- [x] Duet (UMG/Sony): Subscription
based music services, utlimately
accessible from multiple platforms,
will be launched summer 2001. To
be distributed by Yahoo!
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
30
PUBLISHING OPERATING PERFORMANCE 2000
AND 2001 OUTLOOK
| [x] Revenue growth excl. France Loisirs:
euro in millions 2000 PF 1999 PF | % PF +9%
-----------------------------------------------------------------|-------------
REVENUES 3,599 3,352 | 7% [x] PF EBITDA margin up 1.6pp on 1999,
REVENUES EXCL. FRANCE LOISIRS 3,384 3,103 | 9% to close to 15%
-----------------------------------------------------------------|-------------
Games (incl. UI) 419 324 | 29% [x] Games: Constantly awarded best
Education 981 799 | 23% game of the year (Starcraft, Warcraft
Literature (incl. Fr Loisirs) 400 417 | -4% Half-Life, Diablo II) Flipside is the
Healthcare 419 219 | 91% world leader in online gaming after
Business Info. 1,271 1,235 | 3% Uproar acquisition
Other 110 358 | -69%
-----------------------------------------------------------------|------------- [x] Education: successful integration of
EBITDA 531 443 | 20% Spanish and Brazilian acquisitions.
EBITDA EXCL. FRANCE LOISIRS 507 411 | 23% Launch of Education.com in Feb
-----------------------------------------------------------------|------------- 2001 in France, UK, U.S., Germany
Games (incl. UI) 96 75 | 27%
Education 130 97 | 34% [x] Information: Excellent year 2000 for
Literature (incl. Fr Loisirs) 54 57 | -5% the division
Healthcare 58 29 | 99%
Business Info. 180 159 | 13% [x] Healthcare: Continued to reinforce
Other 14 26 | -46% our worldwide position
-----------------------------------------------------------------|-------------
EBITDA % 14.7% 13.2% | [x] TARGET EBITDA GROWTH 00/02:
EBITDA % EXCL. FRANCE LOISIRS 15.0% 13.2% | GUIDANCE +10% P.A. CONFIRMED
-----------------------------------------------------------------|-------------
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
31
TV & FILM OPERATING PERFORMANCE 2000
AND 2001 OUTLOOK
| [x] Canal+'s digital subs up 32% to 5.3m.
euro in millions 2000 PF 1999 PF | % PF Total subs up 9% to 15.3m
-----------------------------------------------------------------|-------------
| o France (C+/CSat): 85% share of
|x| REVENUES 8,796 7,345 | 20% the PayTV market
Groupe Canal+ 3,847 3,288 | 17%
USG* 4,741 3,858 | 23%(1) o Italy: 68% market share, on target
Other 208 199 | 4%
-----------------------------------------------------------------|------------- o Very good profitability of Studio
| Canal
|x| EBITDA 771 326 | 137%
Group Canal+ 507 415 | 22% [x] USG: $1bn box office, 2nd in market
USG* 241 -96 | share: 14.5% in the U.S.
Other 23 7 |
-----------------------------------------------------------------| o Outstanding DVD growth
[x] EBITDA MARGIN 9% 4% |
-----------------------------------------------------------------| o Recreation: Opening of USJ park
(1) +6% excl forex in March 2001:
24% Equity ($85m invested)
*Excluding: USAi: @ 100%: 2000 Revenues:
euro 5.1bn; 2000 EBITDA euro 0.8bn [x] Integration: Canal+ and Universal to
work as a fully integrated company
*Attributed Recreation: Revenues: euro 1bn;
EBITDA: euro 0.3bn [x] GLOBAL DIVISION TARGET 01 EBITDA:
+20%/+30% (CANAL + DIGITAL LEVERAGE)
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
32
TELECOMS OPERATING PERFORMANCE
AND 2001 OUTLOOK
| FRANCE
euro in millions 2000 PF 1999 PF | % PF [x] Mobile (SFR): more than 10m
-----------------------------------------------------------------|------------- customers EOY. #1 private
| operator in France. Strong market
|x| REVENUES 5,270 3,913 | 35% share on customer base (34%)
Cegetel Mobile (SFR) 4,623 3,531 | 31%
Cegetel Fixed 455 318 | 43% o Date on mobile to expand from
International and other 192 64 | 2001: SMS and services should
-----------------------------------------------------------------|------------- account for 8% of ARPU in 2000
|
|x| EBITDA 1,303 494 | 164% o GPRS will boost our date growth:
Cegetel Mobile (SFR) 1,326 642 | 107% commercial launch mass market early
Cegetel Fixed -86 -143 | -40% 2002
International and other 63 -5 |
-----------------------------------------------------------------| o UMTS: strong business case
[x] EBITDA MARGIN 25% 13% |
-----------------------------------------------------------------| [x] Full European access to Internet
[x] CEGETEL MOBILE (SFR) MARGIN* 32% 20% | mobile for Vivendi Universal,
-----------------------------------------------------------------| through the JV with Vodafone
* Margin calculated on SFR network revenues (Vizzavi): 90m customers
in 15 European countries
Those figures don't include TD's (fixed network)
2000 Net revenues @50%: euro 315m [x] Fixed: #1 private operator. EBITDA
2000 EBITDA @50%: euro 58m close to break even in 2000,
including TD 49.9% stake
INTERNATIONAL
[x] Operations in Eastern Europe,
Spain, Morrocco
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
33
INTERNET OPERATING PERFORMANCE
AND 2001 OUTLOOK
euro in millions 2000 PF 1999 PF
----------------------------------------------
[x] REVENUES 48 2
[x] Won (Flipside) 18 Vizzavi and Scoot
JVs consolidated
[x] Numedia 4 under the equity
method
[x] 01 Net 3 1.9
[x] Other portals 23 2
-----------------------------------------------
[x] EBITDA -184 -34
-----------------------------------------------
[x] Vizzavi update:
o Vizzavi roll out in 2001: France, UK, Netherlands, Germany, Italy
o Vizzavi to become a virtual ISP
o More than 750,000 registered customers (UK, NL)
o Projected >2m customers by 2Q 2001
o Projected investment of euro 1.6bn (@100%, VU owns 50% of Vizzavi) by end
2002, with monthly EBITDA break even by end 2003
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
34
SUMMARY: 2001 FINANCIAL OUTLOOK FOR
VIVENDI UNIVERSAL COMMUNICATION
|X| Revenues 2001
o Music +5/6%
o Pay TV & Recreation +10%
o Publishing +5/6%
o Telecom >+20%
o Total excl. USG Films +10%
|X| EBITDA: Oct. 2000 Guidance: 2000PF: euro 3.2bn, Then +35% 2000-2002
o We overperformed in 2000
o For 2001, we fully confirm, at least, Oct. 2000 guidance
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
35
2001 SYNERGIES UPDATE
----------------------
|X| MAJOR PROGRESS AFTER THREE MONTHS, TO ACHIEVE THE COST CUTTING 2002 TARGET
(EURO 420m): A Few Significant Examples:
o HQ: 2001 budgeted savings, euro 58m
o PURCHASING: plan well underway (30 major contracts already
renegotiated, representing euro 20m), more to come
o IT: strong potential to achieve results beyond initial targets,
optimization of internal network worldwide & Data center in Europe,
euro 33m, much more to come
o Real Estate: HQ optimization in BU's (London, LA) already
represent euro 20m, more to come
------> COST SYNERGIES WELL UNDERWAY: EURO 200M WILL BE ACHIEVED BY END 2001
|X| Revenue Synergies Already in BU's Budgets. Really Significant in 2002-2003
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
36
SUMMARY
----------------------
|X| Strong Confidence in Delivering the Ambitious Growth Targets for 2001/2002
|X| VU Management Team Strongly Incentivized to Deliver Growth Targets
o 2 stock option programs have been put in place at the closing
|X| 1% of the Capital for 3,693 people
|X| 0.5% of the Capital for TOP 92, options exercisable upon relative
performance of VU vs. MSCI Media Index
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
37
VIVENDI UNIVERSAL KEY DIFFERENTIATORS
---------------------------------
|X| Direct Access to Large Existing Customer Base
(allowing cross marketing and lower acquisition costs)
|X| Strong and Unmatchable Franchises
o Strong U.S. and European footprints, with Europe leading the
multi-access, broadband revolution
o Worldwide positions in key content businesses
|X| Rapid Underlying Growth (not sensitive to advertising cycles)
|X| Strong Financial Fundamentals
(no financial pressure on the telecom side)
|X| Natural Focus on Subscription Models Allowing More Efficient/diversified
New Business Models
|X| Very Good Year in 2000 (REVENUE UP 16% AND EBITDA UP 68%, PROFORMA
COMMUNICATIONS EXCLUDING FOREIGN EXCHANGE) and Strong Outlook for 2001
VIVENDI
UNIVERSAL
[GRAPHIC OMITTED]
38