-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Wl15WaxNQXeq15EOm6mZQdSnRvNbeMSgGaqJxY+4wo/fZ11J/uxM9cG375+c3D3L sLXaLdHsbNopMDAw7BQnsA== /in/edgar/work/0000898822-00-000729/0000898822-00-000729.txt : 20001013 0000898822-00-000729.hdr.sgml : 20001013 ACCESSION NUMBER: 0000898822-00-000729 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001012 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SEAGRAM CO LTD CENTRAL INDEX KEY: 0000088188 STANDARD INDUSTRIAL CLASSIFICATION: [2080 ] IRS NUMBER: 000000000 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 001-02275 FILM NUMBER: 739123 BUSINESS ADDRESS: STREET 1: 1430 PEEL ST STREET 2: H3A 1S9 CITY: MONTREAL QUEBEC CANA STATE: A8 BUSINESS PHONE: 5148495271 MAIL ADDRESS: STREET 1: C/O JOSEPH E SEAGRAM & SONS INC STREET 2: 375 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10152 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: VIVENDI CENTRAL INDEX KEY: 0000920617 STANDARD INDUSTRIAL CLASSIFICATION: [4813 ] IRS NUMBER: 000000000 STATE OF INCORPORATION: I0 FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 52 RUE D ANJOU CITY: PARIS, FRANCE STATE: I0 ZIP: 75384 BUSINESS PHONE: 0113314924 MAIL ADDRESS: STREET 1: C/O COMPAGNIE GENERALE DES EAUX STREET 2: 52 RUE D'ANJOU CITY: PARIS STATE: I0 ZIP: 75384 FORMER COMPANY: FORMER CONFORMED NAME: COMPAGNIE GENERALE DES EAUX DATE OF NAME CHANGE: 19940321 425 1 0001.txt FORM 425 Filed by Vivendi Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: The Seagram Company Ltd. Commission File No. 1-2275 and Subject Company: Canal Plus S.A. Commission File No. 82-2270 October 12, 2000 GUILLAUME HANNEZO FINANCIALS [VIVENDI UNIVERSAL LOGO] IMPORTANT LEGAL DISCLAIMER - - These documents contain 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 forward-looking statements contained in these documents address the following subjects: expected date of closing the merger; future financial and operating results; and timing and benefits of the merger. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the risk that the Vivendi, Canal+'s and Seagram's businesses will not be integrated successfully; costs related to the merger; failure of the Vivendi, Canal+ or Seagram's stockholders to approve the merger; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; inability to establish and maintain relationships with commerce, advertising, marketing, technology, and content providers. Investors and security holders are urged to read the joint proxy statement/prospectus regarding the business combination transaction referenced in the foregoing information, when it becomes available, because it will contain important information. The joint proxy statement/prospectus will be filed with the Securities and Exchange Commission by Vivendi, Canal+ and Seagram. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus (when it is available) and other documents filed by Vivendi, Canal+ and Seagram with the Commission at the Commission's web site at www.sec.gov. The joint proxy statement/prospectus and these other documents may also be obtained for free from Vivendi, Canal+ and Seagram. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the joint press release relating to the transaction filed with the Commission by each of Vivendi and Seagram, on June 20, 2000. [VIVENDI UNIVERSAL LOGO] HOW MANY SHARES? SHARE COUNTS IN MILLIONS, AS AT 31ST AUGUST 2000
SEAGRAM EXCHANGE RATIO ---------------------- 0.7x 0.8x ----- ----- TOTAL NUMBER OF SHARES OUTSTANDING ASSUMING ALL CANADIAN 1,154 1,198 SHAREHOLDERS ELECT FOR IMMEDIATE EXCHANGE Less: treasury shares reserved for Canadian shareholders (97) (97) Less: other treasury shares (61) (61) ----- ----- ECONOMIC NUMBER OF SHARES OUTSTANDING 996 1,041 Dilutive instruments - -------------------- Oceane January 1999(2) 18.4 18.4 Stock options (Vivendi, Canal+ and Seagram) 35.2 39.3 Warrants 8.9 8.9 (116.3 m / 40 x 3.05) Oceane April 1999 16.2 16.2 Others Seagram (LYONs, ACEs) 11.8 13.5 (20.0 m ACEs units x 0.833) Less: Shares bought on the market (treasury stock method)(1) (25.9) (29.0) ----- ----- FULLY DILUTED (TREASURY STOCK METHOD, EXCL. OCEANE JANUARY 1999) 1,043 1,090 (Post IPO Vivendi Environnement)
(1) Assumes that proceeds resulting from the exercise of stock options are reinvested to purchase shares on the market at 100(euro) for Vivendi, 200(euro) for Canal+ and 70.2$ for Seagram (2) Vivendi committed to cancel Oceane January 1999 (not included in fully diluted number of shares) [VIVENDI UNIVERSAL LOGO] HOW WILL WE REPORT? - - Vivendi already listed on the NYSE. French to US GAAP reconciliation provided - - Vivendi Universal will close quarterly accounts as of Q1 2001(1) - - Vivendi Universal to move toward full US GAAP reporting in FY 2001 - - No more pooling Goodwill - Strong increase in shareholder's equity (57 Bn(euro) under French GAAP + US GAAP adjustment of 6 Bn(euro)) - Close to 37 bn(euro)(2) goodwill to amortize (1) in 2000, comparable basis only for some subsidiaries; disclosure to be determined (2) under French GAAP, excluding Spirits and wines [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL 2000 - SCOPE OF CONSOLIDATION Consolidated Assets (assumptions) - - Cegetel: 44% owned today + management control + option to buy 7.5% from ------- Vodafone [2001 or 2002] - - Canal+: full consolidation, including Canal+ S.A. (Programming division) ------ - - Havas: 100% owned ----- - - Music: 92% owned ----- - - Filmed entertainment: 92% owned -------------------- - - Recreation: 92% owned ---------- - - Vivendi Environnement: 72% as of today --------------------- [VIVENDI UNIVERSAL LOGO] PROFORMA 2000 - SCOPE OF CONSOLIDATION
Revenues CAGR EBITDA CAGR Figures in billion euros Revenues 2000e EBITDA 2000e Objective Objective 2000-2002e 2000-2002e -------------- -------------- ----------------- ---------------- Publishing 3.5 0.5 6% Greater Than or Equal to 10% Music 6.6 1.1 6% 12% Telecom 5.8 1.3 18% Greater Than or Equal to 35% Internet 0.03 (0.1) nm nm Pay-TV 4.0 0.4 10% Greater Than 35% Filmed Ent. & Recreation 4.6 0.3 7% Greater Than 10% Holding 0.0 (0.3) nm nm Revenues Synergies +1,000M(euro)(1) +220M(euro)(1) Costs Synergies -- +440M(euro)(1) - ------------------------ -------------- ------------ ----------------- ---------------- Total VU excluding VE 24.6 3.2 10% 35% and non-core Vivendi Environment(2) 25.6 3.5 8% 11-13%
(1) In 2002, on a proportional basis (2) Vivendi owns 250.6m of VE shares (72%) [VIVENDI UNIVERSAL LOGO] PROFORMA 2000 - SCOPE OF CONSOLIDATION
Revenues CAGR EBITDA CAGR Figures in billion euros Revenues 2000e EBITDA 2000e Objective Objective 2000-2002e 2000-2002e -------------- ------------ ----------------- ---------------- Access 9.8 1.8 Greater Than 15% Greater Than 35% Content 14.7 1.9 6 - 7% 12% - ------------------------- -------------- ------------ ----------------- ---------------- Aggregation 0.03 (0.1) Greater Than 100% nm Holding 0.0 (0.3) nm nm Revenues synergies +1,000M(euro)(1) +220M(euro)(1) Costs synergies - +440M(euro)(1) - ------------------------- -------------- ------------ ----------------- ---------------- Total VU excluding VE 24.6 3.2 10% 35% and non-core Vivendi Environment(2) 25.6 3.5 8% 11-13%
(1) In 2002, on a proportional basis (2) Vivendi owns 250.6m of VE shares (72%) [VIVENDI UNIVERSAL LOGO] COST SYNERGIES ASSUMPTIONS (euro) IN MILLIONS
ADDRESSABLE TARGET SAVINGS COSTS 2002 ----------- -------------- - - FUNCTIONAL OVERHEADS VIVENDI / SEAGRAM CANAL+ / USG } 2,000 160 DELAYERING - - LOGISTICS 1,100 60 - - PURCHASING / PROCUREMENT 3,500 80 - - IT OPERATING EXPENSES 550 60 - - OTHER EXTERNAL CHARGES 30 - -------------------------------------------------------------------------------------------- + SSWG's divestiture savings / non absorbed Seagram's costs (30) + Non recurring items at Vivendi 60 - -------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------- TOTAL EBITDA IMPACT 420 Add: Non EBITDA recurring 50 Add: IT Savings 80 -------------- CASH FLOW IMPACT 550 - --------------------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] REVENUES SYNERGIES ASSUMPTIONS (euro) IN MILLIONS - - TOTAL IDENTIFIED SYNERGIES ONLY
2002 ---- CROSS - CONTENT COMBINATIONS 25 MUSIC CEGETEL MOBILE SERVICES 30 OTHER MUSIC PROJECTS 45 LOYALTY PROGRAMS 15 CROSS - PROMOTIONS 15 CANAL+ / USG 25 GAMES SYNERGIES 15 ALL OTHER 50 - ---------------------------------------------------------- Greater Than or Equal to 400 TOTAL EBITDA 220------> in 2003 - ----------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] NOT TO MENTION MACRO-BENEFITS
- ---------------------------------- ----------------------------------------- KEY LEVERS SENSITIVITIES - ---------------------------------- ----------------------------------------- 1. Reduction of SFR's acquisition ---> 5% reduction --> EBITDA 2002e +50M(euro) costs 2. Reduction of SFR's churn rate ---> 1% reduction --> EBITDA 2002e +12M(euro) 3. Increase of UMG market share in ---> 1% increase --> EBITDA 2002e + 25M(euro) Europe 4. Earlier adoption of Vizzavi ---> 1% additional adoption --> 1 Mio additional active users
[VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL - NON CONSOLIDATED PROFORMA - - 50% OF VIZZAVI, PAN-EUROPEAN MULTI-ACCESS PORTAL WITH 80M POTENTIAL SUBSCRIBER BASE - - 43% OF USAI: (313.8 M SHARES) THROUGH 92%-OWNED UNIVERSAL, A DIVERSIFIED MEDIA AND E-COMMERCE COMPANY EXPLOITING THE CONVERGENCE OF THE INTERNET VIA INFORMATION, ENTERTAINMENT AND DIRECT SELLING - Profitable internet activities ---------- - Current share price: $20 - Analysts' price objective (consensus): $30 (+50%) [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL - NON CONSOLIDATED PROFORMA - - 22.7% OF BSKYB (420.1M SHARES) - - VIVENDI'S NON CONSOLIDATED TELCO INVESTMENTS: 31.5%(1) OF XFERA, ELEKTRIM TELECOM (49%), MISRFONE (7%), MONACO TELECOM (51%), MOBILE LICENSE IN KENYA (60%), BERLIKOMM (25.5%), WASHINGTON BALTIMORE (10%) - - VIVENDI'S NON CONSOLIDATED INTERNET INVESTMENTS: SCOOT UK (22.4%), SCOOT EUROPE (50%), @VISO (50%), VIVENTURES I (30%), VIVENTURES II (40%) - - VIVENDI'S NON CORE ASSETS: - listed: E 1.5 bn - Sithe: E 1.8 bn, deconsolidated at year-end, remaining stake 30% with put option around 0.5 BN(euro) - 55% of AOL France (1) In association with FCC [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL - NON CONSOLIDATED PROFORMA - - SEAGRAM'S ASSOCIATES: APPROXIMATE VALUE(2) $ 2.4BN - Music division: GetMusic.com (50%) - Filmed Entertainment: UCI (49%), Interplay (16%) - Recreation: Universal Studios Florida (50%), Universal Studios Japan (24%), Port Aventura (37%), Orlando Resorts ---> ADDITIONAL ATTRIBUTED EBITDA TO REACH 200 M$ IN 2002 - Others: Dupont (10.6m shares, 1%) - - CANAL+'S ASSOCIATES: SOGECABLE (MARKET CAP.(EURO)3.5 BN, 2.7M SUBS., 20%), MULTITHEMATIQUES (30%), POLAND (682,000 SUBS., 33%), EUROSPORT INT'L (49.5%), EUROSPORT FRANCE (39% + 25% HAVAS IMAGES) (2) Source: Prudential Securities [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL - NET DEBT AT JUNE 2000 PROFORMA DISPOSALS
BN(EURO) EUROS -------------- JUNE 2000 CONSOLIDATED 21.7 Listing VE (3.2) Sithe's Disposal (1.8) Dalkia/EDF (1.0) Kinetics and others (1.2) -------------- PROFORMA NET DEBT 14.5 of which Vivendi Environnement 13.3 (fixed-rate mostly) - -------------------------------------------------------------------------------------------------------------------- VIVENDI COMMUNICATION 1.2 of which: OCEANE(1) (1.25%) 1.7 Bn(euro) net debt, nearly in the money (92.55(euro) per Vivendi share), due Dec. 2003 BSkyB Exchangeables 1% 1.4 Bn(euro) cash proceeds, 1.1 Bn(euro) net debt, out of the money (1.445p per BSkyB share) due July 2003 BSkyB Exchangeables ex-Pathe (3%) 0.2 Bn(euro) cash proceeds, due Nov. 2003 - --------------------------------------------------------------------------------------------------------------------
- - SPIRITS AND WINE DIVISION DISPOSAL TO OFFSET SEAGRAM'S NET DEBT [VIVENDI UNIVERSAL LOGO] TAXES - - VIVENDI: 100%-OWNED FRENCH PERIMETER - losses carried forward of ca. 2.6 Bn(euro) by year-end, to be off-set by ordinary profits and capital gains - - CEGETEL: LOSSES CARRIED FORWARD OF 1.2 BN(EURO) BY YEAR-END TO BE OFF-SET AGAINST PROFITS - - VIVENDI ENVIRONNEMENT PAYS TAXES FROM 2000 ON [VIVENDI UNIVERSAL LOGO] CASH FLOW DYNAMICS (EXCLUDING UMTS AND DISPOSAL) - - CONSOLIDATED FREE CASH FLOW - -------------------------------------------------------------------------------- Excluding UMTS, Vizzavi and disposals, after dividend 2001 (before restructuring costs): (euro)0.8bn 2002 (before restructuring costs): (euro)2.1bn Restructuring costs (post tax) 2001: (euro)(0.4)bn 2002e 0
- -------------------------------------------------------------------------------- - - NON-CONSOLIDATED : AT USAi, STRONG CASH FLOW GENERATION AND LEVERAGE CAPACITY [VIVENDI UNIVERSAL LOGO] CASH FLOW DYNAMICS: UMTS AND ANNOUNCED DISPOSALS (EURO) IN BILLION
CUMULATIVE 2001-2002 ---------- - - CEGETEL CAPEX, (EURO) IN BILLIONS UMTS LICENCE COSTS(1)@100% (2.4) UMTS ADDITIONAL CAPEX @100% (0.9) - - XFERA INVESTMENT(2) (0.4) - - VIZZAVI INVESTMENT (0.6)-(0.8)(3) - - ANNOUNCED DISPOSALS 4.0
(1) 4.95 Bn(euro); down payments of 1.2 Bn(euro) in 2001 and 2002; remaining equally split over 13 years resulting in yearly payment of 190M(euro) (2) Vivendi share, assuming investment covered 50/50 debt and equity; License conditions subject to re-negotiated (3) Depending upon cash burn and IPO timing [VIVENDI UNIVERSAL LOGO] CONCLUSION - - CONSISTENT EBITDA GROWTH - - VIVENDI UNIVERSAL COMMUNICATION DELEVERAGED - - SIGNIFICANT FCF GENERATION--> ABILITY TO FINANCE INTERNAL UMTS AND INTERNET DEVELOPMENT - - ADDITIONAL ASSET ARBITRAGE CAPACITY TO FINANCE EXTERNAL GROWTH [VIVENDI UNIVERSAL LOGO] -----END PRIVACY-ENHANCED MESSAGE-----