-----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, KemI6KuZseY7x2M+kmZIMnVkB3+sOxNOEQ2lfcIl8gBqUWikJdigX4P96eyOCZbs 9HI/B1lZHaogh7sVfGsP7w== /in/edgar/work/0000898822-00-000767/0000898822-00-000767.txt : 20001020 0000898822-00-000767.hdr.sgml : 20001020 ACCESSION NUMBER: 0000898822-00-000767 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001018 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: 742298 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 18, 2000 JEAN MARIE MESSIER EDGAR BRONFMAN JR GROUP OVERVIEW STRATEGY AND ORGANISATION [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] OUR VISION A GLOBAL COMPANY FOR THE DIGITAL AGE Vivendi Universal will be the world's preferred creator and provider of personalised information, entertainment and services to consumers anywhere, at any time, and across all distribution platforms and devices. [VIVENDI UNIVERSAL LOGO] 1. THE BENEFITS OF DIGITAL CONVERGENCE - - THE CONVERGENCE IS CONSUMER-DRIVEN. - Localized services - Multi-accessibility - Rich and personalized content - Personalization must be easy - - THE MOVE IS TECHNOLOGY-ENABLED - Broadband access channels to multiply - Devices are mutating to match consumers' needs (portability, storage,...) - - PREMIUM CONTENT IS ESSENTIAL - Practical information for day-to-day life - Entertainment content (music, film, games) - Education [VIVENDI UNIVERSAL LOGO] 1. THE BENEFITS OF DIGITAL CONVERGENCE - - Vivendi Universal will have all the key drivers for value creation in the global media world
New Scale & Global Brands Bundling Vertical Key revenue Scope footprint integration driver streams - ----------------------------------------------------------------------------------------------------- Seagram X X X XX 0 0 Vivendi X-XX X-XX X X XX XX Canal+ XX X-XX X XX X 0 - ----------------------------------------------------------------------------------------------------- Vivendi Universal XX XX XX XX XX XX
0 = no or low X = average XX = good - - ...and growth capacities [VIVENDI UNIVERSAL LOGO] 1. THE BENEFITS OF DIGITAL CONVERGENCE - - VERTICAL INTEGRATION IS ESSENTIAL TO MAXIMIZE SHAREHOLDER VALUE: - New businesses will be introduced to the market faster - Ability to keep most of the margin of the value-chain within the group - - VERTICAL INTEGRATION DOES NOT MEAN EXCLUSIVITY: - Content does not maximize its value if distribution channels are limited and vice versa - Premium content to contribute to differentiation through windowing policies and early cooperation - - A CONSUMER CENTRIC CENTURY: - Personalization - Customization - Localization [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH VIVENDI UNIVERSAL IS A GROWTH STORY [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / REVENUES - - Consolidated revenues from the communications business to reach (euro)24.6bn in 2000 CONSOLIDATED BUSINESSES - Music 6.6bn - Publishing 3.5bn - Filmed entertainment * 4.6bn - Pay TV 4.0bn - Telecoms 5.8bn - TOTAL 24.6 bn(euro) NON CONSOLIDATED BUSINESSES (FIGURES FOR 100%) - Vizzavi (50%) na - Recreation unconsolidated ** 1.2 bn - USAi (43%) 4.6 bn - Xfera (31.5%) na - BSkyB (22.7%) 3.4 bn * INCLUDES CONSOLIDATED RECREATION OPERATIONS ** 50% OF ORLANDO STUDIOS FLORIDA, 24% OF UNIVERSAL STUDIOS JAPAN, 37% OF PORT AVENTURA [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / SUSTAINED EBITDA GROWTH - - Consolidated EBITDA target for 2000 in excess of (euro)3.5bn for the communications activities CONSOLIDATED BUSINESSES - Music 1.1bn - Publishing 0.5bn - Filmed entertainment * 0.3bn - Pay TV 0.45bn - Telecoms 1.3bn - Internet (0.1)bn - TOTAL (euro) 3.5 bn*** NON CONSOLIDATED BUSINESSES (CONSENSUS) - Recreation affiliates ** 0.2bn - USAi (43%) 0.8bn - BSkyB (22.7%) 0.4bn * INCLUDES CONSOLIDATED RECREATION OPERATIONS ** 50% OF ORLANDO STUDIOS FLORIDA, 24% OF UNIVERSAL STUDIOS JAPAN AND 37% OF PORT AVENTURA *** EXCLUDING CORPORATE OVERHEADS AND NON CORE (- (EURO) 0.3 BN) [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / GROWTH RATES - - TOTAL CONSOLIDATED
- ------------------------------------------------------------------------------ 00 00 vs 99 00-02 - ------------------------------------------------------------------------------ CONTENT Sales 14.7 +14% +6 to 7% EBITDA 1.9 > 50% +12% - ------------------------------------------------------------------------------ ACCESS Sales 9.8 +90% (greater than or equal to) +15% EBITDA 1.8 x 2,5 at Cegetel > +35% & Canal+ included - ------------------------------------------------------------------------------ SYNERGIES 640M(EURO) Consolidated EBITDA by end 2002 - ------------------------------------------------------------------------------ TOTAL V.U. EXCLUDING ENVIRONNEMENT Sales 24.6 +35% +10% EBITDA 3.2 More than doubled +35% - ------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / CONTENT CONTENT CONSISTENT GROWTH, CASH FLOW GENERATION [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / CONTENT - - MUSIC - #1 WW, with strong global and local content - Capitalize on new business opportunities: - Digital downloads - Subscription services - Locked Content - TV / set-top boxes - Wireless - Satellite Radio - Internet Radio - Pay-per-Play - Kiosks - Near term top line growth 6%, EBITDA growth 12% (2000-2002) - Low risk / high FCF (approximately equal to 70% of EBITDA) [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / CONTENT - - PUBLISHING - Focusing on growth markets with multiplatform applications (education, healthcare, business information, local services) - Positioned for the digital revolution (PC games, e-learning) - Top line growth approx. 6%, EBITDA growth over 10% (2000-2002) - FCF about 400 M(euro) per year [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / CONTENT - - FILM AND RECREATION - EBITDA growth to benefit from Universal Pictures' ongoing turnaround and successful opening of new theme parks - Cap on film investments / risk management - Significant expansion of library sales to new formats including DVD and digital distribution - FCF neutral [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / ACCESS ACCESS RAPID GROWTH, STRONG EBITDA LEVERAGE [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / ACCESS - - TELECOMS - A fixed cost industry - Fast growing penetration rates - 55% mid-year average mobile penetration in Europe - targeting > 70% in 2 years - Leverage on EBITDA - Significance of churn - Top line growth near 20% p. y. (2000-2002) - EBITDA growth over 35% p. y. (2000 / 2002) - Financing of UMTS secured (France and Spain): no capital increase at Cegetel; debt to equity ratio of Cegetel to remain below 1:1 [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / ACCESS - - PAY TV - Pan-European multiservice television provider - Continuing growth from Canal+ business model replicated outside France - Costs are fixed => EBITDA leverage - Digitalization creates additional leverage on Average Revenue per User (ARPU) - Sales expected up 10% for 2000-02 - EBITDA up > 35% per year (2000-02) - Cash-flow consuming until 2002 [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / AGGREGATION AGGREGATION STRONG ASSETS, NEW BUSINESS MODELS AND REVENUE STREAMS [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / AGGREGATION - - VIVENDI NET - Leverage the internet value of VU assets - Grow thematic portals (entertainment, education, information and transaction) - Grow and create enablers, capitalizing on the critical mass of the Vivendi Universal network - Incubate business models linked with Vivendi Universal business and make Venture Capital investments to access technological development [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / AGGREGATION - - VIZZAVI - Our goal is to create the leading European portal - differentiation from pure PC portal with seamless services between mobile, PC and TV - 80 M potential multiplatform subscribers (TV, mobile, PC) - Vivendi Universal as preferred content supplier of Vizzavi - 600 / 800 M(euro), our investment to win in this space [VIVENDI UNIVERSAL LOGO] 2. FINANCIAL STRENGTH / VIVENDI UNIVERSAL'S ECONOMICS - CONTENT: ------- consistent growth + strong cash flow generation - ACCESS: ------ rapid growth + fixed costs = strong EBITDA leverage - 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 LOGO] 2. FINANCIAL STRENGTH - A DELEVERAGED, FCF GENERATIVE AND FLEXIBLE GROUP - Vivendi Universal communication pro forma debt <(euro)2 bn after Seagram's Spirits and Wine divestiture and before BskyB disposal - FCF above (euro)2 bn over the next 2 years (after restructuring costs) 3. SYNERGY TARGETS - - CONSOLIDATED EBITDA IMPACT
- -------------------------------------------------------------- 2002 2003 - -------------------------------------------------------------- Costs (euro)420M (euro)420M - -------------------------------------------------------------- Revenues (euro)220M (greater than or equal to) (euro)400M - --------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] PART 4 IMPLEMENTATION VIVENDI UNIVERSAL AS A FULLY INTEGRATED GROUP [VIVENDI UNIVERSAL LOGO] 4.1. EC CLEARS TRANSACTION: UNDERTAKINGS - - Divestiture of Vivendi`s Interest in BSKyB - - Open access Music On-line - Universal Music will make its music available on a non discriminatory basis to Vizzavi and its competitors - - Agreement on Pay TV/Movies - In France, Spain, Italy, Benelux and Nordic countries, upon expiry of the current output deals between Canal Plus and Universal Studios, for a duration of 5 years, Universal Studios will not grant to Canal Plus more than 50% of its film production for the first pay-TV window 4.2. ORGANIZATION - - A STRONG OPERATIONAL TEAM : JEAN-MARIE MESSIER, EDGAR BRONFMAN JR, ERIC LICOYS AND PIERRE LESCURE - TV and films : Pierre Lescure - Music : Doug Morris - Publishing : Agnes Touraine (CEO) - Internet : Philippe Germond - Telco : Frank Esser (CEO) - USAi : Barry Diller as a close partner - - ERIC LICOYS, AS CO-COO, WILL BE IN CHARGE OF IMPLEMENTING ALL COST AND REVENUE SYNERGIES - - CRM AND CIO MANAGERS TO BE APPOINTED AT VIVENDI UNIVERSAL LEVEL [VIVENDI UNIVERSAL LOGO] 4.3. ORGANIZATION STRONG TRACK RECORD IN VALUE CREATION IN MEDIA BUSINESSES: - - UNIVERSAL MUSIC: SUCCESSFUL INTEGRATION OF POLYGRAM - Objective of $ 300 M savings in 3 years to be actually met in 2 years - Turnaround in progress at Universal Pictures - - VIVENDI - Havas - Successful integration of Havas Interactive in California - Strong profitability recovery: EBITDA margin grown from 4% at time of merger early 1988 to 14% in 2000 (e). - Cegetel - Leading alternative operator in France, 5 years after creation - VivendiNet - The only European media company with a coherent and aggressive multi-access Internet strategy - - CANAL+: LEADER IN EUROPE - - USA NETWORKS [VIVENDI UNIVERSAL LOGO] 4.4. CORPORATE GOVERNANCE - - CORPORATE GOVERNANCE CHANGES - Quarterly financial statements from January 1, 2001; - Financial statements under US GAAP for full year 2001; - Eliminating double voting rights; - Eliminating resolutions allowing for capital increases during a public offering; - Reducing the period during which shares are locked up in custody in order to vote at shareholders' meetings from five days to one day; - Making voting forms and explanatory notes available on the group's financial internet site; - A total of 8 non French directors [VIVENDI UNIVERSAL LOGO] VIVENDI -UNIVERSAL: A UNIQUE ALLIANCE - - MARKETS - Growth markets: content/access/aggregation - Multi-access is key; mobility is now a consumer need. - Vertical integration [arrow graphic] to keep margins within the group [arrow graphic] for speed - - MANAGEMENT - Integrated organization - Strong value creation track record in the media industry - Focused on growth and profitability targets - Committed to implementation of synergies and innovation - - FINANCIAL STRENGTH - Steady growth prospect: top line = + 10% pa; EBITDA = +35% pa - Strong cash flow generation - Deleveraged balanced sheet [VIVENDI UNIVERSAL LOGO] # # # 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: OCEANE1 (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 DIVESTITURE OF BSKYB WILL CREATE ADDITIONAL CASH FLEXIBILITY
(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] # # # [HAVAS LOGO] Eric Licoys Agnes Touraine Fabrice Fries - -------------------------------------------------------------------------------- THE PUBLISHING DIVISION OF VIVENDI UNIVERSAL - -------------------------------------------------------------------------------- [VIVENDI UNIVERSAL LOGO] [HAVAS 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] [HAVAS LOGO] AGENDA - 1 - HAVAS GROUP - 2 - Synergies -- Our contribution to Vivendi Universal Synergies -- 3 Year Plan - 3 - Business description and two examples of web Strategy -- Education.com -- Flipside [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] OUR MISSION TO BE A WORLDWIDE PUBLISHER FOCUSING ON MARKETS WITH HIGH MULTI-PLATFORM POTENTIAL [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] A LEADER IN CONTENT IN 5 3 YEARS OF CORE MARKETS REFOCUSING --> DIVESTMENT: 2BN (EURO) 2000 A DIVERSIFIED --> ACQUISITION: 1.6BN (EURO) MEDIA CONGLOMERATE 1997-2000 BEFORE 1997 [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] KEY FIGURES (IN (EURO) BILLION) TOTAL SALES : 3.5 BN (EURO)
1999 2000 E * - NET SALES 3.3 3.5 Europe 2.6 2.6 North America 0.5 0.7 ROW 0.1 0.2 - EBITDA BEFORE INTERNET INVESTMENT 0.42 0.5 12.7% 14.3% - EMPLOYEES 21,000
* current structure [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] HAVAS: A WORLDWIDE PUBLISHER EDUCATION BUSINESS & SALES: 1,354 M(EURO) GENERAL EBITDA: 180 M(EURO) INFORMATION SALES: 902 M(EURO) EBITDA: 145 M(EURO) HEALTHCARE GAMES INFORMATION LOCAL SERVICES SALES: 401 M(EURO) SALES: 448 M(EURO) SALES: 365 M(EURO) EBITDA: 80 M(EURO) EBITDA: 60 M(EURO) EBITDA: 35 M(EURO)
[VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] OUR STRATEGIC DRIVERS - - CONSOLIDATING OUR LEADING POSITION THROUGH PROFITABLE GROWTH, OPERATIONAL SYNERGIES, AND CONTINUOUS COST REDUCTION: -- Focus on growth markets in leveraging intellectual property on a global basis -- Accelerate our internet developments -- Leverage our successful integration and development of synergies with recent major acquisitions (HII and MMI) -- Benefit from the high level of synergies with Universal content -- Increase cash generation [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] A MULTI-PLATFORM STRATEGY
[BOOK GRAPHIC] [CD GRAPHIC] [PHONE @ COMPUTER GRAPHIC] PRINT MULTIMEDIA INTERNET WAP PDA - ---------------------------------------------------------------------------------- - -- PC Games na #1 ww Flipside.com - ---------------------------------------------------------------------------------- - -- Education #5 ww #1 ww Education.com - ---------------------------------------------------------------------------------- - -- Healthcare #3 ww #1 drug Atmedica.com info. - ---------------------------------------------------------------------------------- - -- Business & Cadres Online General Information #2 Europe ns 01.Net - ---------------------------------------------------------------------------------- - -- Local Services #1 France ns bonjour.fr - ----------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] INTERNET IS A LARGE GROWTH OPPORTUNITY - - To generate new revenue: new markets (elearning) and services - - To focus on internet business models which lead to profitability - - To drive print assets into electronic era with a << first mover >> attitude - - That's why we are focusing our investments on our core markets: no pure financial investment but 116 m (euro) invested in 2000 in our core business [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] AGENDA - 1 - Havas Group - 2 - SYNERGIES -- Our contribution to Vivendi Universal Synergies -- 3 Year Plan - 3 - Business description and two examples of web Strategy -- Education.com -- Flipside [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] OUR COMMITMENT FOR SYNERGIES - Important and immediate fit between Management and Team due to common culture and know-how - Content combination & games synergies (2003) - revenue :(euro) 200 - 250 m - ebitda: (euro) 50-75m - Pursue additional overhead reductions 10 m (euro) [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] LIST OF "TOP 10+" CONTENT COMBINATION OPPORTUNITIES
Proposed long term Revenue synergy opportunities Impacted Business Lever(s) business owner ----------------------------- -------------------------- -------------- 0 Cross promote 2-4 high priority VU Improved loyalty, brand USI Corp Mktg., then content and product brands wareness and positioning future central org. 1 Multi-content Kiosk ~1,200 kiosks in 2003, UMG Global E potentially a Vizzavi outlet 2 Self publish/license off-line games Incremental games revenue; UIS, Havas Interactive Capture publishing revenues 3 Park Concierge Device ~300k(1) add. annual park Universal Recreation visitors, cross-promotions, yield management 4 Musical/theatrical and travelling Ticket sales, brand/portfolio USI, Uni. Recreation & shows building Entertainment 5 Product Bundles/Partworks Incremental revenue and Havas Publishing margin on product bundles 6 Music and Education Incremental sales & reach Havas Interactive into "edutainment" space 7 TV shows/videos/soundtracks from Incremental rev., brand Uni Fam&Home Ent., games/education characters building Canal+ 8 Packaging and Foreign Language Incremental revenue, brand Havas Publishing Learning building 9 Enhance and promote Flipside Increase traffic by 8-11M Flipside subscribers, increase advertising revenue 10 Music and Sports Incremental product sales UM Intl, Canal+
[VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] PRODUCT BUNDLES/PARTWORKS - - PRODUCT BUNDLES: generate incremental EBITDA by leveraging Havas and Universal existing content, across categories -- Bundle together CDs / books / games / videos to create value added content extensions. -- In 2003, 2 bundles / year, annual revenue of $ 2 m and EBITDA margin of 70%. - - PARTWORKS: increase revenues and EBITDA in a worldwide market of $ 1.2 bn, via new product ranges, leveraging reference know-how and existing retail networks in Europe and Latin America -- Create new continuing series of publications (15 - 70) on print + CDs / DVDs / videos, using music, film and TV properties. -- In 2003, one series at a time, annual revenue of $ 18 m and EBITDA margin of 50%. [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] BOOK PACKAGING AND FOREIGN LANGUAGE LEARNING - - BOOK PACKAGING: generate incremental revenues by creating and selling books to publishers around the world, using characters and content -- set a new publishing house in the UK, leveraging existing infrastructure and packaging know-how. -- In 2003, 20 titles / year and annual revenue of $ 10 m, with 15% EBITDA margin. - - FOREIGN LANGUAGE Learning opportunity: consolidate Foreign language Learning position with new brand: Universal English -- Launch a new concept of Foreign Language Products using movie, TV and music clips. -- Leverage Havas Know how on e-learning -- In 2003, 15 products, annual revenue of $ 5 m and EBITDA margin of 15%. [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] MUSIC AND EDUCATION - - INCREASE INTERACTIVE EDUCATION WORLDWIDE MARKET SHARE BY EXTENDING MULTIMEDIA PRODUCT RANGES. -- Launch in 2002 a new concept teaching music to teens interactively. It will use famous Universal artists and labels and popular Havas education characters (eg learn music and rythm with Jumpstart, 6 skus). -- In 2003, 30 products, annual revenue of $ 35 m and EBITDA margin of 15%. [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] SELF-PUBLISH/LICENCE OFF-LINE GAMES - - Capture off-line game revenue and EBITDA synergies between Havas and Universal, in development, licencing, publishing and distribution. - - Publish games that otherwise would not be made and self-publish games that otherwise would have been outsourced (eg Spyro, Bruce Lee ...). - - In 2003, 8 titles, annual revenue of $ 50 m and EBITDA margin of 20%. [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] HAVAS PLAN (IN (EURO) BILLION) (EXCLUDING SYNERGIES)
2000 E AGR 00/02 ------------------------------------------------------------------ NET SALES w/o internet 3.5 + 6% ------------------------------------------------------------------ EBITDA w/o internet 0.5 > 10% ------------------------------------------------------------------ PRE-TAX OPERATING FREE CASH-FLOW: > 0.4/year ------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] AGENDA - 1 - Havas Group - 2 - Synergies -- Our contribution to Vivendi Universal Synergies -- 3 Year Plan - 3 - BUSINESS DESCRIPTION AND TWO EXAMPLES OF WEB STRATEGY -- Education.com -- Flipside [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] HEALTHCARE: LEVERAGE UNIQUE ASSETS [JANO GRAPHIC] [MIMS ANNUAL GRAPHIC] [KRAMES GRAPHIC] [VIDAL GRAPHIC] - 2000 sales : 448 M(EURO) [atmedica GRAPHIC] - 2000 EBITDA : 60 M(EURO) - #3 WW, #1 WW in drug info., #1 US for patient info - pharma oriented, unique geographic network (35 countries) - focus on patient education / atmedica [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] BUSINESS AND GENERAL INFORMATION: SUCCEED IN THE WEB MIGRATION [01 Informatique GRAPHIC] [L'Express GRAPHIC] [Cadres Online WEB GRAPHIC] [Building GRAPHIC] [Newbiz GRAPHIC] - 2000 sales : 902 M(EURO) [Barbour Index GRAPHIC] - 2000 EBITDA : 145 M(EURO) - #2 in Europe for BtoB info - a media neutral coverage - leading web positions (recruitment, IT, construction...) [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] LOCAL SERVICES: BUILD UP A TRANSACTIONAL PLATFORM [BONJOUR GRAPHICS] - 2000 sales : 365 M(EURO) [SCOOT WEB GRAPHIC] - 2000 EBITDA : 35 M(EURO) - #1 in France in print/web - National salesforce and marketing database - key partner for Scoot's European roll-out of transactional model [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] EDUCATION & KNOWLEDGE: A GLOBAL PLAYER - 2000 sales : 1,354 M(EURO) [BOOK and SOFTWARE GRAPHICS] - 2000 EBITDA : 180 M(EURO) - SCHOOL : leading position in K-12 in France, Spain, Latin America - KIDS : #1 worldwide in electronic - E LEARNING : strong growth potential - REFERENCE : a ww player (Larousse) - GENERAL LITTERATURE : #1 in France [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] EDUCATION.COM IS THE ONLY GLOBAL INITIATIVE THAT ADDRESSES 3 TARGET AUDIENCES SIMULTANEOUSLY - CORE TARGET : PARENTS (CARETAKERS) -- direct purchasing -- recommendation to children -- end-use [KIDS, PARENTS, TEACHERS CIRCULAR GRAPHIC] - SECONDARY TARGET : CHILDREN -- end-use (main target) -- recommendation to parents and to other children - COMPLEMENTARY TARGET : TEACHERS -- recommendation to parents and children -- end-use [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] EDUCATION.COM IS THE MOST IMPORTANT GLOBAL CROSS-ROADS FOR CONTENT, SERVICES AND COMMUNITY - GLOBAL PUBLISHING RESOURCES LEADING OFF-LINE GLOBAL MULTIMEDIA BRANDS USA FRANCE UK GERMANY SPAIN BRAZIL [COUNTRY [COUNTRY [COUNTRY [COUNTRY [COUNTRY [COUNTRY GRAPHIC] GRAPHIC] GRAPHIC] GRAPHIC] GRAPHIC] GRAPHIC] INTERNAL HII ATICA HER SCIPIONE HII NATHAN KINGFISHER LAROUSSE CHAMBERS BORDAS KINGFISHER ANAYA LAROUSSE LAROUSSE - -------------------------------------------------------------------------------------------------- BROCKAUS/ TAGTEACHERNET DUDEN UNIVERSAL STUDIOS THORNES NELSON ELTERN WOLF/ UNIVERSAL MUSIC KNOW.UK, WESTERMAN ... SCHROEDEL/ TEACHERNEWS KLETT,... EXTERNAL (DISCUSSIONS IN PROGRESS)
education.com [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] A BALANCED REVENUE MODEL [BAR GRAPHIC]
(%) 2001 2002 2003 (Dollars in Thousands) Subscription Revenues 45% 39% 35% Advertising Revenues 19% 17% 17% E.Commerce Revenues 37% 44% 48% Total revenue $8 mil $20 mil $30 mil
- - Subscription: drawing on current successful model of Adi on line (virtual classes and testing): 6,000 subscribing families in France - - Advertising: monetizing a targeted audience base - - E-commerce: leveraging the ww #1 position in interactive education - - Break even : H2 2002 [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] - - Education : one of our key markets for profitable web developments... - - Games : a key worldwide market for Havas with an already strong web position [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] GAMES : A LEADER ON ALL PLATFORMS - 2000 sales : 401 M(EURO) [GAME SOFTWARE and FLIPSIDE WEB GRAPHICS] - 2000 EBITDA : 80 M(EURO) - #1 WW on PC - Consistently awarded best game of the year (Diablo, Warcraft) - Universal Interactive (40 m (euro) Ebitda) and estimated Synergies 15 m (euro)) - Flipside success, 8% reach [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] [flipside.com LOGO] A LEADER IN ONLINE INTERACTIVE GAMES [VIVENDI UNIVERSAL LOGO] FLIPSIDE.COM: A RECIPE FOR SUCCESS [HAVAS LOGO] - - ONLINE GAME IS THE FASTEST GROWING MASS MARKET CONTENT ON THE INTERNET: - large scale of viewership, good stickiness and unique targeting opportunities - - FLIPSIDE.COM: A LEADER IN THE ONLINE GAME MARKET - a product of the merger Won.net (exclusive content and technologies) with Prize Central (profitable business model), which accelerated their combined growth - - FLIPSIDE.COM WILL EXPAND ITS LEADERSHIP GEOGRAPHICALLY AND ACROSS MULTIPLE PLATFORMS - support of Vivendi's global network of alliances, including the Universal properties [FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO] ONLINE GAME MARKET IS EXPECTED TO REACH $5 BILLION IN 2004 WITH 73M PLAYERS [HAVAS LOGO] ONLINE GAME MARKET SIZE ($ MILLIONS) [BAR CHART]
1999 2000 2001 2002 2003 2004 ---- ---- ---- ----- ----- ----- US 58 160 540 1,080 1,990 2,810 Europe 24 87 339 755 1,433 2,126 ---- ---- ---- ----- ----- ----- Total 82 247 879 1,835 3,423 4,936
[FLIPSIDE.COM LOGO] SOURCE: DATAMONITOR [VIVENDI UNIVERSAL LOGO] BEATING BUSINESS PLAN ON THE 3 KEY INDICATORS (3 R'S) [HAVAS LOGO] REACH (Mmx) [LINE CHART]
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual 5.10% 5.20% 5.70% 6.10% 6.10% 8.10% Goals 4.10% 4.20% 5.40% 5.60% 5.80% 6.00% 6.20% 6.50% 7.50% 8.00%
REGISTRATIONS (millions) [LINE CHART]
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual 4,099 4,350 4,866 5,456 6,059 6,610 Goals 4,120 4,745 5,370 6,037 6,703 7,370 8,107 8,844 9,265
MONTHLY REVENUE ($ m) [LINE CHART]
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual 1,674 1,696 1,717 1,982 1,906 2,079 Goals 1,400 1,533 1,533 1,533 1,833 1,833 1,833 2,133 2,133 2,133
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO] A LEADER IN ON LINE GAME AND A TOP 15 SITE IN TERMS OF TOTAL TIME SPENT [HAVAS LOGO]
RANK WEB PROPERTY MILLIONS OF HOURS 1 YAHOO SITES 197.2 2 AOL SITES 169.8 3 MICROSOFT SITES 103.5 4 eBAY 87.5 5 iWON, INC. 71.3 6 EXCITE NETWORK 36.7 7 LYCOS 29.5 8 WDIG 24.5 - ---------------------------------------------------------- 9 FLIPSIDE.COM 20.6 - ---------------------------------------------------------- 10 POGO.COM, INC. 19.9 11 ALTAVISTA NETWORK 17.9 12 CNN 12.3 13 NBC INTERNET 12.1 14 eTOUR, INC. 11.4 15 AMAZON.COM, INC. 10.3
PC Data, August 2000 On Mediametrix, N(degree)12 [FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO] "FLIPS" : AN OUTSTANDING LOYALTY PROGRAM [HAVAS LOGO] - - A simple rewards system that increases traffic and duration on the site - - An efficient profiling tool allowing targeted advertising and direct marketing : - Banners targeted by age, gender, location, - - e-mail programs - - Integration of member profile for ad serving & ad sales - - A proven model to lower acquisition costs and boost CPM [FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] "FLIPS" : A KEY PROFIT DRIVER LOWER COST PER HIGHER REVENUE REGISTRATION PER USER PER MONTH [ARROWS GRAPHIC] MORE PROFIT HIGHER RETENTION [FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO] EVOLUTION OF REVENUE MIX BREAK EVEN IN Q2 2001 [HAVAS LOGO] [Bar Chart]
Q1 00 Q4 01 Direct Marketing 24% 40% "Earn Tokens" Advertising 1% 14% Sponsorships 6% 22% Interstitial Advertising 2% 8% Banner Advertising 64% 12%
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO] A MEDIA NEUTRAL STRATEGY [HAVAS LOGO] - - BECOME THE LEADING HOUSEHOLD NAME IN THE ONLINE GAME SPACE - - EXPAND OUR LEADERSHIP POSITIONS GEOGRAPHICALLY AND ACROSS MULTIPLE PLATFORMS [TELEVISION GRAPHIC] - INTERACTIVE TELEVISION - 7 MILLION CANAL+ SET TOP BOXES IN EUROPE - COMBINING LIVE TV SHOWS WITH ONLINE MULTIPLAYER GAMES [MOBILE TERMINAL GRAPHIC] - ONLINE ON MOBILE TERMINALS - PLAY, GET NEWS ANYTIME ANYWHERE (ARROW) HIGH LOYALTY [CONSOLE GRAPHIC] - CONSOLE - CONSOLES POISED TO REPRESENT A KEY ACCESS DEVICE AS EARLY AS 2003 - VIZZAVI - ACCESS TO MASS AUDIENCE 80 MILLION VIZZAVI CUSTOMERS - CONSIDERABLE RESOURCES - LEVERAGE FLIPS TO INCREASE TRAFFIC, RETENTION AND REVENUES OF ALL VIVENDI UNIVERSAL SITES [FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO] [HAVAS LOGO] AS A CONCLUSION [VIVENDI UNIVERSAL LOGO] WHAT HAVAS CONTRIBUTES TO VIVENDI UNIVERSAL [HAVAS LOGO] - - A traditional publisher focusing on multi platform and profitable web developments - - Huge opportunities in Games & Edutainment with Universal - - Strong customer bases - - Intellectual properties and high value contents - - ...and strong and growing free cash flow (80% of EBITDA) [VIVENDI UNIVERSAL LOGO] # # # [CEGETEL LOGO] PHILIPPE GERMOND FRANK ESSER TELECOMMUNICATIONS DIVISIONS [VIVENDI UNIVERSAL LOGO] [CEGETEL 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] [CEGETEL LOGO] AGENDA - - Introductory remarks - - Cegetel: Current positioning and 2000 performance - - Vivendi Telecom International - - Synergy opportunities [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] CEGETEL TODAY CEGETEL IS THE FIRST PRIVATE TELECOM OPERATOR IN FRANCE WITH OVER 11M CUSTOMERS (MID OCTOBER): - - 9M mobile users (GSM deregulated since 1994) - - 2.2M fixed lines (deregulated since 1998) - - 11 000 data sites and 32 000 voice sites for the corporate market - - First alternative long distance carrier in France: 60M min/day - - ~ 300 owned distribution outlets in city centers and malls by year-end 2000 THE SKILLS AND KNOW-HOW OF 8 200 EMPLOYEES [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] EVOLUTION OF THE FRENCH TELECOMMUNICATION MARKET - - The French telecommunication market should show a CAGR of 10% between 1999 and 2002 - - Mobile and data will be the most dynamic sectors [BAR CHART]
1999 2002 ---- ---- Mobile 8 Bn(euro) 13 Bn(euro) +59% Data 4 Bn(euro) 6 Bn(euro) +69% Fixed voice - local 9 Bn(euro) 10 Bn(euro) +10% Fixed voice - LD 5 Bn(euro) 5 Bn(euro) Payphones 1 Bn(euro) 1 Bn(euro) ----------- ------------ Total 26 Bn(euro) 34 Bn(euro)
Source: HSBC Securities [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] A GROWTH STORY [BAR CHART] EVOLUTION OF CUSTOMERS BASES
1998 1999 2000 (e) --------- --------- ---------- SFR 4,201,005 7,223,803 10,062,000 le 7 650,821 1,502,885 1,997,666 --------- --------- ---------- 4,853,824 8,728,687 12,059,666
[BAR CHART] CUMULATIVE CAPEX IN M(euro) (1)
1998 1999 2000(e) ---- ---- ------- 4,052 4,623 5,548
[BAR CHART] EBITDA IN M(euro) (2)
1998 1999 2000 (e) ---- ---- -------- 279 502 ~1,300
(1) Including TD investments (2) Mobile acquisition costs expensed as of 01.01.2000 to comply with US GAAP [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] MISSION STATEMENT - - Be the Number One private global telecommunication operator in France - - Be best positioned for the broadband revolution: - Mobile: first operator to achieve national GPRS (10 times GSM speed for data on mobile) roll-out by year-end 2000 - Fixed: ADSL (fast Internet) aggressive implementation as early as January 1st, 2001 - - 25% of the French Telecommunication market by year 2003 (15 % by mid 2000) [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] STRONG OVERALL PERFORMANCE - - Sustained revenue and EBITDA growth (35%+ CAGR 2000-2002) - - Aggregated fixed activities at EBITDA breakeven by year-end 2000 - - Positive Group Net Income achieved at mid-year 2000 - - Mobile activities at Free Cash Flow breakeven by year-end 2000 [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] COMPETITIVE POSITION - - Critical network assets: - # 1 Cellular network (1999 French Regulator Survey) - National long distance backbone with 360 local switches interconnected - Aggressive roll-out of broadband access for mobile (GPRS) and fixed (ADSL) - - A strategy of differentiation: - Brand awareness - Innovation through services - Customer care [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] CEGETEL: CURRENT POSITIONNING [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] MOBILE ACTIVITIES [SFR LOGO] [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] SFR TODAY - - 98% of the population covered - - 10M SFR customers expected by year-end - - 40% penetration rate mid 2000 70% expected in 2003 - - 4th leading country in Europe in number of users, but second least penetrated in Europe [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] SFR: THE MOST VALUABLE CUSTOMERS AVERAGE REVENUE PER USER S1-2000 [BAR CHART]
ARPU ---- SFR 44 (euros) Itineris 40 (euros) Bouygues 38 (euros) Source: Operators
ARPU Evolution [LINE CHART]
Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total Average 100 96 102 99 98 104 99 95 96 87 84 85 82 78 Subscribers 100 97 102 100 99 105 102 98 101 93 92 93 94 92 Prepaid 100 90 105 100 103 112 101 96 89 80 74 81 73 65
Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 ------ ------ ------ ------ ------ ------ ------ Total Average 83 78 82 82 81 79 81 Subscribers 97 91 96 96 94 92 96 Prepaid 75 68 74 76 77 76 72
[VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] PREPARING FOR MOBILE INTERNET - - SMS are now being used by 30% of all our prepaid customers and 24% of our postpaid base, averaging 20 messages per customer per month - - Thanks to new offers (SMS kiosk, SMS chat, etc) SMS and services should represent 10% of SFR revenues in 2001 [BAR CHART]
BILLABLE SMS PER MONTH DEC-99 JUL-00 DEC-00 ------ ------ ------ 19 MILLION 45 MILLION 60 MILLION
[VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] MANAGED REVENUES - - Reduction of churn by 50% since January 2000 [LINE CHART]
Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ 3.21% 2.92% 2.63% 2.34% 2.07% 2.08% 2.09% 2.11% 2.21% 2.31% 2.83% 3.35% 2.97% 2.22%
Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 - ------ ------ ------ ------ ------ ------ 2.08% 1.84% 1.72% 1.53% 1.32% 1.60%
- - A controlled decrease in market share (gross sales) [LINE CHART]
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total 41% 39% 37% 35% 34% 38% 36% 35% 35% 37% 34% 35% 42% 34% Subscribers 44% 42% 40% 40% 38% 39% 41% 38% 35% 32% 34% 46% 49% 34% Prepaid 31% 32% 30% 26% 27% 35% 30% 31% 35% 42% 33% 28% 36% 35%
MAR-00 APR-00 MAY-00 JUN-00 JUL-00 AUG-00 ------ ------ ------ ------ ------ ------ Total 35% 35% 36% 32% 29% 31% Subscribers 36% 37% 38% 35% 28% 29% Prepaid 33% 34% 35% 29% 31% 32%
[VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] COSTS ARE UNDER CONTROL - - Decrease in subsidies and dealers commissions vs H2 1999 but acquisition costs remain high [LINE CHART]
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Average 100 115 110 98 125 136 111 176 152 137 134 139 148 98 Subscribers 100 118 111 95 126 136 123 184 177 157 166 172 181 120 Prepaid 100 116 128 139 178 231 127 297 203 236 199 203 167 148
MAR-00 APR-00 MAY-00 JUN-00 JUL-00 AUG-00 SEP-00 ------ ------ ------ ------ ------ ------ ------ Average 126 117 105 123 96 101 104 Subscribers 152 145 131 145 125 140 135 Prepaid 148 148 130 168 122 126 120
- - Other operating costs under control and decrease in Unit costs (technical, IT, customer care, structure), faster than ARPU [LINE CHART]
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00 MAR-00 APR-00 - ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ 100 93 90 95 95 99 93 96 88 84 82 71 72 71 75 77
MAY-00 JUN-00 JUL-00 AUG-00 SEP-00 - ------ ------ ------ ------ ------ 77 67 77 71 76
[VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] SFR SOUND FINANCIALS
Full year --------- 99 pro-forma 00 (1) (e) Variance --- --- -------- Customers (M) 7.20 10.00 +38% Revenues (Bn(euro)) 3.53 5.10 +44% Ebitda (Bn(euro)) 0.64 1.35 x2 Cumulative Capex/ customer ((euro)) 480(2) 410 -15%
- ------------------ (1) Mobile acquisition costs expensed as of 01.01.2000 according to US GAAP (2) 690 (euro) in 1998 [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] SFR, THE TECHNOLOGY LEADER BROADBAND 1999 SMS 2000 WAP 2001 GPRS 2002 UMTS 2003
Mid 1999 #1 to launch WAP phones Mid 2000 #1 to launch Vizzavi In Europe End 2000 #1 national GPRS coverage 2001 Ready for UMTS license [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] LEVERAGE ON GLOBAL EXCELLENCE SFR is a local operator - National network - National customer care but can leverage the experience and assets of international partners - Music, films and recreation - European WAP portal - Global purchasing program - International services [EMBLEM GRAPHICS] BEST POSITIONED FOR MULTIMEDIA [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] FIXED ACTIVITIES [7 GRAPHIC] [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] FINANCIAL PERFORMANCE (1) - - Strong progression in revenues, despite fierce competition on voice tariffs, due to: - Sharp progress of data: +71% in revenues in 2000 - Increase in monthly volume: +80% since the beginning of year 2000 [LINE CHART] CUMULATED MONTHLY TRAFFIC in K min
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC --- --- --- --- --- --- --- --- --- --- --- --- 1998 -- 4 23 66 131 236 371 519 731 1,000 1,301 1,638 1999 374 730 1,171 1,597 2,026 2,512 3,002 3,444 3,982 4,539 5,164 5,897 2000 903 1,833 2,983 4,128 5,436 6,862 8,379 9,775 11,383
[LINE CHART] EVOLUTION OF RESIDENTIAL TARIFFS in FRF
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ National 0.52 0.54 0.49 0.49 0.47 0.44 0.44 0.44 0.44 0.43 0.39 0.39 0.37 0.38 International 1.78 1.79 1.58 1.58 1.57 1.56 1.59 1.60 1.57 1.55 1.47 1.48 1.44 1.38
MAR-00 APR-00 MAY-00 JUN-00 JUL-00 AUG-00 ------ ------ ------ ------ ------ ------ National 0.38 0.35 0.32 0.32 0.33 0.33 -37% International 1.37 1.38 1.37 1.38 1.40 1.43 -20%
- - Cost control and improved gross margin [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] FINANCIAL PERFORMANCE (2) - - The first alternative operator to report breakeven Ebitda only after 2.5 years
Full year --------- ((euro)million) 99 00(e) Variance - --------------- -- ----- -------- Revenues 334 465 +40% Ebitda (1) (107) > 0 NM Capex 134 145 11
(1) including 100 % of network infrastructure subsidiary Telecom Developpement [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] STRONG COMMERCIAL ACHIEVEMENTS IN THE ADDRESSABLE MARKET - - ~50% residential market share among private competitors (Source Secodip, 06/00) - - ~65% professional market share among private competitors (Source Datanova, 06/00) - - 2.5 M lines by year-end 2000 - - 81% of spontaneous brand awareness (Source Millward Brown - May 2000) - - >70% of preselection on new customers [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] CEGETEL, THE BROADBAND OPERATOR (1) - - Status : - Rapid roll out of ADSL services as of Q1 2001 for residentials and business customers - Pending technical and commercial discussions with FT: co-localisation of equipment, interconnection tariffs, ... - - Assets: - TD network capillarity (360 FT local switches already interconnected) - Know-how: tested live in Monaco Telecom - Vivendi Universal content (games, video, music,...) - - Financial target: EBITDA positive after 3 years [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] STRATEGY: FOCUS ON INTERNET - - Cegetel / TD currently carries 50% of the French ISPs traffic (excluding Wanadoo) - - Build an IP network in order to : - Use convergence for fixed and mobile networks - Address fast growing internet traffic - Offer value added services in cooperation with Vivendi Net (web hosting, e-meeting,...) - Develop wholesale offer for ISPs, virtual ISPs - Address retail ISP for the broadband market, in partnership with Vizzavi for content aggregation and delivery [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] CEGETEL GROUP 2000 PERFORMANCE [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] GROUP KEY FINANCIALS (1) IMPROVED GROUP ECONOMICS NOTE: MOBILE ACQUISITION COSTS TOTALLY EXPENSED AS OF 1.1.00 TO COMPLY WITH US GAAP
FIRST HALF FULL YEAR 2000-2002 CAGR ---------------------------------------- ----------------------------------------- -------------- H1 99 99 00 ((EURO)BN) H1 00 VARIANCE VARIANCE PRO-FORMA PRO-FORMA EST. ---------------------------------------- ----------------------------------------- --------------- Revenues 1,85 2,40 + 28 % 3,91 5,60 + 45 % ~20% Ebitda 0,33 0,57 + 73 % 0,50 1,30 x 2,5 ~35% Ebit 0,07 0,25 x 3,6 (0,04) 0,50 n.m. ~50% Capex 0,40 0,40 _ 1,10 1,20 + 10% ~20%*
* Including UMTS, ADSL [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] GROUP KEY FINANCIALS (2) BASIC ASSUMPTIONS 2000-2002 - Mobile: - Penetration rate 65% - Market share 33% - Mix prepaid / postpaid 70% / 30% - Average Revenue Per User evolution (CAGR) -18% - Average Customer Acquisition Cost (CAGR)(1) -25% - Fixed: - Access to voice local traffic as of 2002 and strong development of fixed-to-mobile - Decrease in voice sales price -20% - Improvement of data gross margin due to decrease in access leased line costs (1) Unit decrease+mix [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] GROUP KEY FINANCIALS (3) SENSITIVITY ANALYSIS
PARAMETER EBIT IMPACT IN 2001 --------- ------------------- - - +/- 1 pt in churn rate [arrow graphic] +/- 12 M(euro) - - +/- 10(euro) in Customer Acquisition Cost [arrow graphic] +/- 50 M(euro) - - +/- 1(euro)in Average Revenue Per User [arrow graphic] +/- 100 M(euro) - - 1% decrease in incoming revenues [arrow graphic] - 5 M(euro)
[VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] GROUP KEY FINANCIALS (4) - - Sound financial structure...
((EURO)BN) DEC. 99 JUNE 00 DEC 00 PRO-FORMA EST. - ---------- ------- ------- ------ NET FINANCIAL DEBT 1,27 1,48 1,89 TOTAL SHAREHOLDERS' EQUITY 2,21 2,26 2,35
- - ... should allow for financing UMTS with a maximum 1/1 debt-to-equity ratio at the peak of end 2002 [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] VIVENDI TELECOM INTERNATIONAL [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] VIVENDI GROUP INTERNATIONAL OPERATIONS - - Vivendi Telecom International (100% subsidiary of Vivendi) - Targeted strategy in both fixed and mobile broadband - Focus on Europe and Africa - - 3 main properties: - Spain : 4th mobile operator (UMTS license), # 1 shareholder - Eastern Europe : Hungary # 2 fixed operator ; Poland : leader in both mobile and fixed activities - Monaco Telecom : Incumbent Operator - - Expertise based upon Cegetel professional skills and exchange of experience [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] GROUP INTERNATIONAL PROPERTIES
FIXED GROUP SUBSCRIBERS LICENCE NET SALES TELEPHONY OPERATOR INTEREST JUNE 2000 SINCE 1999 - --------- -------- -------- --------- ------- --------- HUNGARY VTH 100 % 500.000 1994 132 M(EURO) POLAND BRESNAN 51,5 % 360.000 1997 - MONACO MONACO TELECOM 51 % 35.000 1998 71 M(EURO) MOBILE GROUP SUBSCRIBERS LICENCE NET SALES TELEPHONY OPERATOR INTEREST JUNE 2000 SINCE 1999 - --------- -------- -------- --------- ------- --------- SPAIN XFERA 31,1 % (*) 2000 N/A MONACO MONACO TELECOM 51 % 15.000 1998 15 M(EURO) POLAND PTC / ERA 26,3 % 2.500.000 1996 590 M(EURO) EGYPT MISRFONE 7 % 650.000 1998 160 M(EURO) KENYA KENCELL 40 % 10.000(**) 2000 N/A
(*) COMMERCIAL LAUNCH IN 2001 (**) COMMERCIAL LAUNCH IN AUGUST 2000 [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] SYNERGIES OPPORTUNITIES [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] SYNERGY OPPORTUNITIES - - Vivendi Universal, a fantastic opportunity to increase the value of Cegetel: - The mobile phone will become the main music handset device in the next two years - Music and game contents are considered as key applications for vocal, SMS and WAP services - The Vivendi Universal brands (Canal+, Universal) and its products are key levers to increase our penetration on specific targets as youngsters - - All synergies are in addition to Revenue and EBITDA forecasts [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] MAIN VALUE CREATION LEVERS FOR CEGETEL (1) - - Increase stickiness by marketing actions targeting music customers and games players : - Addition of 1 month of lifetime for 10% of the customer base raises by 25 M(euro)the 2002 Ebitda - - Increase airtime and data usage for SFR. An increase of only 5% penetration rate for vocal and SMS services will raise by 20 M(euro) the 2002 Ebitda [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] MAIN VALUE CREATION LEVERS FOR CEGETEL (2) - - Improve SFR market share on specific segments leveraging Universal products and brand : - Increasing 1% of the market share on the total customer base raises by 100 M(euro)the 2002 Ebitda [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] ACTION PLAN [UNIVERSAL GLOBE GRAPHIC] - - A choice of services based on the major artists of UMG - Music greetings on your handset, or through Vizzavi (WAP and WEB) - Ringtones : downloading specific ringtones such as the title <> N(degree)1 Top 50. [FLIPSIDE.COM GRAPHIC] - A choice of exclusive games on GPRS handsets: - Chess games with Flipside, adventure and strategy games - Airflow tariffs [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] ACTION PLAN - - Dec 2000 to Q1 2001 : Develop new GPRS functionalities - Communities (chat, ..) : The first multi-access chat - M-commerce of CD's (With a visual application) - Downloads of music samples: ~2 minutes for the download of 3 minute of CD quality music (64kb/s) - Use Flipside as the preferred Games portal - - 2001 -2002 - Create a consumer loyalty program across Vivendi Universal Business Units - Cegetel as a burn partner [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] ACTION PLAN - - 2001: global strategy of co-sponsored events such as Summer SFR Tour, co-branded Cyber-Cafes in the main French cities - - End of S1 2001: - A total range of music enhanced phone devices consistent with UMG codec / digital right management policy - The mobile phone becomes a << walkphone >>, your personal co-branded digital jukebox - - UMTS: SFR is best positioned to leverage Vivendi Universal brands in order to address specific targets [VIVENDI UNIVERSAL LOGO] [CEGETEL LOGO] CONCLUSION - - Cegetel well positioned on the French market: - # 1 mobile private operator - # 1 private long distance operator - # 1 alternative national backbone - - Cegetel has strong 2000 financials: - Revenues ~+45% - EDITDA ~+150% - Free Cash Flow on Mobile Activities - Steady 2000-2002 growth expected in revenues (20%) and Ebitda (35%) - - Cegetel is best prepared for future: - Broadband access and convergence (ADSL,UMTS) - Leverage on strong international partnerships - Access to premium Vivendi Universal contents BEST POSITIONED FOR MULTIMEDIA [VIVENDI UNIVERSAL LOGO] # # # [CANAL+ LOGO] PIERRE LESCURE TV AND FILMS GROUP PRESENTATION [VIVENDI UNIVERSAL LOGO] [CANAL+ 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] [CANAL+ LOGO] PIERRE LESCURE EVI FULLENBACH DENIS OLIVENNES RICHARD LENORMAND CANAL+ GROUP [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] AGENDA - - CANAL+ GROUP - THE CANAL+ BUSINESSES - KEY FINANCIALS - - UNIVERSAL STUDIOS GROUP - - VIVENDI UNIVERSAL'S TV AND FILMS DIVISION [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] AN ORGANISATION POSITIONED ACROSS THE ENTIRE MEDIA VALUE CHAIN... ...GENERATING INTEGRATION BENEFITS AND STRENGTHENING EACH VERTICAL
PRODUCTION DIGITAL TV AND LIBRARIES PAY-TV INTERNET TECHNOLOGY - ------------------ ----------------------- ------------------------- ---------------------- - - STUDIOCANAL - LARGEST EUROPEAN - CANALNUMEDIA - CANAL+ TECHNOLOGIES PAY-TV OPERATOR - - 5,600 MOVIES - 11 COUNTRIES AND - PARTNERS WITH - 7 MILLION STBs PLATFORMS VIZZAVI AND VNET DEPLOYED - - 6,000 TV HOURS - OVER 10 MILLION - OVER 30 WEB SITES - ACTIVE IN EUROPE, SUBSCRIBERS/ US AND ASIA OVER 14 MILLION SUBSCRIPTIONS - - 2nd LIBRARY IN EUROPE - ------------------ ----------------------- ------------------------- ----------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+ GROUP DYNAMICS
PRODUCTION AND PROGRAM DISTRIBUTION RIGHTS LIBRARY PACKAGING CANAL+ TV (TERRESTRIAL, S CHANNELS DTH, CABLE) U R CONTENT B E S V - - NEW FILMS [ARROW INTERNET [ARROW TECHNOLOGY C E GRAPHICS] CONTENT GRAPHICS] [ARROW GRAPHICS] R N I U - - TV PROGRAMS THEMATIC PC OR MOBILE B E CHANNELS (VIZZAVI) E S NARROW/ R BROADBAND - - LIBRARIES
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] PRODUCTION AND RIGHTS LIBRARY EUROPE'S SECOND LARGEST TELEVISION AND MOVIE RIGHTS LIBRARY
- ---------------------------- ------------------------ ---------------------- ------------------------ ----------------------- PRODUCTION AND CO-PRODUCTION THEATRICAL VIDEO/DVD TV MERCHANDISING DISTRIBUTION DISTIBUTION DISTRIBUTION - ---------------------------- FRANCE, UK, SPAIN, ITALY, GERMANY - ---------------------------- ------------------------ ---------------------- ------------------------ ----------------------- RIGHTS LIBRARY FRANCE FRANCE WORLDWIDE FRANCE - ---------------------------- - - 2nd LARGEST IN EUROPE UK UK - SALES TO : GERMANY - - 5,600 MOVIES GERMANY GERMANY - PREMIUM CHANNELS - - 6,000 HOURS OF SPAIN SPAIN - MINIPAY TV PROGRAMS BENELUX BENELUX - BASIC - ---------------------------- - OVER-THE-AIR CHANNELS - ---------------------------- ------------------------ ---------------------- ------------------------ ----------------------- ACQUISITIONS - -----------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] PAY TELEVISION THE LEADING PAY TV OPERATOR IN EUROPE PRODUCTION DISTRIBUTION - ---------------------------------- ------------------------------------------ - - 14 Y CHANNELS - SATELLITE 42% - - 25 "IN HOUSE" THEMATIC - OVER-THE-AIR 44% CHANNELS - - 15 KEY BRANDS - CABLE 14% - - 50 INTERACTIVE SERVICES - ---------------------------------- ------------------------------------------ - ---------------------------------- ------------------------------------------ [CANAL+ LOGO] [CINE CINE MAS LOGO] [CANAL SATELLITE LOGO] [TELE + LOGO] [CANAL JIMMY LOGO] [D + LOGO] [SATELITE CANAL DIGITAL LOGO] [SEASONS LOGO] [CLASSICS LOGO] [CYFRA + LOGO] [CANALDIGITAL LOGO] [PLANETE LOGO] - ---------------------------------- ------------------------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] PAY TELEVISION THE CANAL+ GROUP IDENTITY
- -------------------------------------------------------------------------------- PREMIUM + THEMATIC + PLATFORM - -------------------------------------------------------------------------------- BLOCKBUSTER MOVIES CINEMA SPORTS SPORTS GENERAL ENTERTAINMENT CHILDREN & NEWS DOCUMENTARIES GENERAL ENTERTAINMENT NEWS MUSIC - -------------------------------------------------------------------------------- [CANAL+ LOGO] [EUROSPORT.COM LOGO] [CANAL SATELLITE LOGO] [PLANETE LOGO] [CLASSICS LOGO] [I TELEVISION LOGO] [CANAL JIMMY LOGO] [SEASONS LOGO] - -------------------------------------------------------------------------------- INTERNATIONAL COMPARABLES - -------------------------------------------------------------------------------- [HBO + LOGO] [DISCOVERY CHANNEL LOGO] [ECHOSTAR LOGO] [SHOWTIME LOGO] [NICKELODEON LOGO] [DIRECTV LOGO] [ESPN LOGO] [TCM LOGO] - --------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] A PAN-EUROPEAN FOOTPRINT 14 MILLION SUBSCRIPTIONS IN 11 EUROPEAN COUNTRIES... ... AND SUBSTANTIAL UPSIDE POTENTIAL REMAINS WITH A CANAL+ AVERAGE PENETRATION OF 11% OF TV HOMES - -------------------------------- -------------------------------- BENELUX NORDIC COUNTRIES TOTAL TV HOMES: 11.1 MILLION TOTAL TV HOMES: 10.4 MILLION CANAL+ GROUP PENETRATION: 6% [GRAPIC] CANAL+ GROUP PENETRATION: 6% 2-YR CAGR: 10.2% 2-YR CAGR: 25.1% LAUNCH DATE: 1989 LAUNCH DATE: 1997 - -------------------------------- -------------------------------- - -------------------------------- -------------------------------- FRANCE POLAND TOTAL TV HOMES: 22.3 MILLION TOTAL TV HOMES: 12.3 MILLION CANAL+ GROUP PENETRATION: 24% CANAL+ GROUP PENETRATION: 3% 2-YR CAGR: 8.0% 2-YR CAGR: 62.3% LAUNCH DATE: 1984 LAUNCH DATE: 1995 - -------------------------------- -------------------------------- - -------------------------------- -------------------------------- SPAIN ITALY TOTAL TV HOMES: 12.3 MILLION TOTAL TV HOMES: 20.6 MILLION CANAL+ GROUP PENETRATION: 15% CANAL+ GROUP PENETRATION: 7% 2-YR CAGR: 22.3% 2-YR CAGR: 38.4% LAUNCH DATE: 1990 LAUNCH DATE: 1997 - -------------------------------- -------------------------------- -------------------------------- AFRICA 2-YR CAGR: 11.8% LAUNCH DATE: 1991 --------------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] US/EUROPEAN MEDIA WORLDS CANAL+ OPERATES IN A SIZEABLE MARKET. EUROPE'S LOW CABLE PENETRATION CREATES A SOLID LEADERSHIP POSITION
(99 YEAR END) TOTAL PAY TV CABLE SATELLITE OVER-THE-AIR TVHH PENETRATION PENETRATION PENETRATION PENETRATION (MIL) % (AS A % OF TOTAL TVHH) CANAL+ MARKETS - -------------- FRANCE 22.3 36 13 10 13 ITALY 20.6 10 1 6 3 SPAIN 12.3 20 2 10 8 BENELUX 11.1 90 90 POLAND 12.3 36 34 2 NORDIC COUNTRIES 10.4 56 51 5 COMBINED 87.3 37 26 6 5 - -------- CANAL+ MARKETS - -------------- USA 99.4 78 67 10 1 UK 23.9 32 13 17 2 GERMANY 33.4 64 61 3
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] A GROWING SUBSCRIBER BASE OVER 14 MILLION SUBSCRIPTIONS AS OF 30 JUNE 2000 (SUBSCRIPTIONS IN '000s) [BAR GRAPH]
CAGR: 15.5% 1993 5,737 1994 6,407 1995 7,269 1996 8,214 1997 9,479 1998 11,618 1999 13,628
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+'S LOYAL SUBSCRIBER BASE: LOWEST CHURN IN INDUSTRY - - 7 YEARS average subscription duration (11 years in France) [BAR GRAPH] DIRECTV (US) 18.9% ECHOSTAR (US) 15% CANAL+ (EUROPE) 14.4% BSKYB (UK) 10.5% CANAL+ (FRANCE) 8.8%
SOURCES: COMPANY AND EQUITY RESEARCH DATA [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] DIGITAL SUBSCRIBER GROWTH:+137% P.A. SINCE LAUNCH 4.5 million digital subscribers as of June 30, 2000 International France [Bar Graph] 1996 220 1997 1,226 1998 2,543 1999 4,023 JUNE 2000 4,491
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] STRONG ARPU LEVERAGE... Average Monthly Revenue Per Subscriber ...RESULTING FROM A MUCH LARGER PROGRAM AND SERVICES OFFERING ON DIGITAL COMPARED TO ANALOGUE
EURO 28 EURO 46 PREMIUM PAY-PER-VIEW BASIC PREMIUM ANALOGUE DIGITAL
[VIVENDI UNIVERSAL LOGO] [CANAL + LOGO] AN ORGANISATION POSITIONED ACROSS THE ENTIRE MEDIA VALUE CHAIN... ...GENERATING INTEGRATION BENEFITS AND STRENGTHENING EACH VERTICAL
PRODUCTION DIGITAL TV AND LIBRARIES PAY-TV INTERNET TECHNOLOGY - - StudioCanal - Largest European - CanalNumedia - CANAL+ Technologies pay-TV operator - - 5,600 movies - Partners with - 7 million STBs deployed - 11 countries and platforms Vizzavi and Vnet - - 6,000 TV hours - Active in Europe, - Over 10 million - Over 30 web sites US and Asia - - 2nd library in Europe subscribers/ Over 14 million subscriptions
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] INTERNET: PARTNERING WITH VIVENDINET TO EXPORT ON THE WEB ALL OF CANAL+'S CONTENT AND BRANDS
CONTENT SOURCING WEB PACKAGING OF MULTI FORMATING FOR BRANDED THEMATHIC MULTI DISTRIBUTION PORTALS/SITES - - TV Channels - Sports - PC - - Rights Acquisition - Movies - TV - - Events - - Co-productions & partnerships - Y-Generation - PDA - - Databases - Channels - WAP/UMTS
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] TECHNOLOGY A MAJOR PLAYER IN DIGITAL TECHNOLOGY
INTERACTIVE SYSTEM APPLICATIONS AND DEVELOPMENT INTEGRATION RELATED BACK-OFFICE - Conditional Access - Digital Broadcast Center - Development of applications Software: Installation and Support MEDIAGUARD - Authoring Tools for third - Cable parties (Europe, US, Asia) - Interactive TV Software: MEDIAHIGHWAY - Satellite -- Software houses - -- Set-top box - Terrestrial -- Operators and channels manufacturers -- More than 20 network operators worldwide
- 7 Million STBs deployed - 13 countries in operation - Half of the customers outside the Group including: ONDigital (UK) ZEE TV (India) MediaOne (USA) [VIVENDI UNIVERSAL LOGO] [CANAL + LOGO] A EUROPEAN FOCUS IN ALL OUR BUSINESSES
NORDIC FRANCE ITALY SPAIN REGION BENELUX POLAND OTHERS ------------------------------------------------------------------------------ PRODUCTION X X X X X X X AND LIBRARIES ------------------------------------------------------------------------------ PAY-TV X X X X X X X ------------------------------------------------------------------------------ INTERNET X X X X X X X ------------------------------------------------------------------------------ TECHNOLOGY X X X X X X X ------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] AGENDA - - CANAL+ GROUP - THE CANAL+ BUSINESSES - KEY FINANCIALS - - UNIVERSAL STUDIOS GROUP - - VIVENDI UNIVERSAL'S TV AND FILMS DIVISION [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CONSOLIDATED REVENUES BY BUSINESS SEGMENT TOTAL 1999 = EURO 3,291 m [RING CHART] FRANCE 64% INTERNATIONAL 23% --- PAY TV 87% PRODUCTION AND RIGHTS LIBRARY 11% OTHER ACTIVITIES 2%
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] EBITDA BY BUSINESS SEGMENT TOTAL 1999 = EURO 423 m [BAR GRAPH] PAY TELEVISION FRANCE EURO 400 m PAY TELEVISION INTERNATIONAL EURO (157)m PRODUCTION AND RIGHTS LIBRARY EURO 178 m OTHER ACTIVITIES EURO 2 m
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] TELE+ : STRONG UPSIDE POTENTIAL STILL IN THE EARLY STAGE OF THE J CURVE OF THE PAY TV MODEL M EURO [BAR CHART] [Graph shows revenues increasing from $690 million in 2000 through 2003 and variable and fixed costs growing at slower rate over same period] [BAR CHART] [Graph shows subscriptions growing from 2,700,000 in 2000 through 2003 and EBITDA increasing from (euro) - 180 million in 2000 to a positive number in 2003] - - THE BOTTOM OF THE J CURVE HIT IN 2000 - - BEGINNING OF THE UPSWING IN 2001 - - BREAKEVEN IN 2003 [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] PROGRAMMING COSTS CONTAINMENT - - Output deals in 11 European countries with 3 to 6 of the 7 US major studios - - Agreements with the main sports federations (soccer, basketball, boxing, rugby) in 11 European countries [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] PROJECTED FINANCIALS 2000E - ------------------------------------------------------------- Individual subscriptions (in thousands) FRANCE 7.0 INTERNATIONAL 8.2 - ------------------------------------------------------------- (EURO millions) REVENUES 3,650 - ------------------------------------------------------------- EBITDA 420 - ------------------------------------------------------------- CAPEX 740 - ------------------------------------------------------------- [VIVENDI UNIVERSAL LOGO]
[CANAL+ LOGO] NON CONSOLIDATED ASSETS - ------------------------------------------------------------------------------------------------------------------------ OWNERSHIP SUBSCRIPTIONS 1999 1999 REVENUES EBITDA - ------------------------------------------------------------------------------------------------------------------------ PAY-TV (30/6/00) (30/6/00) EURO EURO MILLIONS MILLIONS - ------------------------------------------------------------------------------------------------------------------------ NORDIC CANAL DIGITAL 50% 0.33M EURO 67 MIL EURO -29 MIL SPAIN SOGECABLE 21% 1.79 491 66 PREMIUM 18% 0.90 254 -20 SOGECABLE SATELLITE POLAND TKP 33% 0.39 44 -18 CYFRA+ 33% 0.29 6 -19 - ------------------------------------------------------------------------------------------------------------------------ THEMATIC - ------------------------------------------------------------------------------------------------------------------------ EUROSPORT FRANCE 39% 4.0 22 3 INTERNATIONAL 50% 32.1 153 14 MULTITHEMATIQUES 27% 18.1 118 -19 - ------------------------------------------------------------------------------------------------------------------------ TV PROGRAMS - ------------------------------------------------------------------------------------------------------------------------ EXPAND 29% - 77* 36* - ------------------------------------------------------------------------------------------------------------------------ INTERNET - ------------------------------------------------------------------------------------------------------------------------ CANEL 50% - 2* -16* NUMEDIA - ------------------------------------------------------------------------------------------------------------------------
* Figures for first half 2000 [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] KEY BUSINESS DRIVERS Quality of Product Subscriber Base Revenue Base ====> Strength of Brand Growth ====> ARPU ====> Analogue/Digital Conversion Interactive Services Own-production/Coproduction Cost Programming ====> Acquisitions Containment ====> Subscriber ====> Churn Management Acquisition Competition [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] KEY TRENDS FOR CANAL+ GROUP - - SUSTAINED GROWTH AND IMPROVING PROFITABILITY FOR THE COMING YEARS - - CASH FLOW BREAK-EVEN EXPECTED IN 2002
- -------------------------------------------------------------------------------- 2000-02 CAGR - -------------------------------------------------------------------------------- SUBSCRIPTIONS 10% - -------------------------------------------------------------------------------- REVENUES >10% - -------------------------------------------------------------------------------- EBITDA 35% to 40% - --------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] AGENDA - - CANAL+ GROUP - THE CANAL+ BUSINESSES - KEY FINANCIALS - - UNIVERSAL STUDIOS GROUP - - VIVENDI UNIVERSAL'S TV AND FILMS DIVISION [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] AGENDA - - CANAL+ GROUP - THE CANAL+ BUSINESSES - KEY FINANCIALS - - UNIVERSAL STUDIOS GROUP - - VIVENDI UNIVERSAL'S TV AND FILMS DIVISION [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: A NATURAL FIT - - 50% OF STUDIO REVENUES ARE GENERATED BY TV CHANNELS - - 40% OF TOTAL CHANNEL PROGRAMMING CONSISTS OF MOVIES [UNIVERSAL LOGO] PRODUCTION/} PACKAGING} DISTRIBUTION PROGRAMS } CHANNELS } } } } - -------------------------------------------------------------------------------- [CANAL+lOGO] PRODUCTION/ PACKAGING DISTRIBUTION DISTRIBUTION} CHANNELS } PLATFORMS PROGRAMS } } }
} } [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] EXAMPLE: THEMATIC CHANNELS A COMPLEMENTARY FOOTPRINTS WITH POTENTIAL FOR GEOGRAPHIC EXPANSION OVER 43 MILLION TV HOUSEHOLDS RECEIVE CANAL+ AND UNIVERSAL THEMATIC CHANNELS
[CANAL+ GROUP LOGO] [UNIVERSAL LOGO] FRANCE X X ITALY X X SPAIN X X BENELUX X NORDIC REGION X POLAND X GERMANY X X U.K. X LATIN AMERICA X
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] EXAMPLE: A POWERFUL COMBINATION OF RIGHTS LIBRARIES
[STUDIO CANAL LOGO] [UNIVERSAL LOGO] NUMBER OF TITLES 5,600 4,000 + TV HOURS 6,000 24,000
FILM LIBRARY BY COUNTRY OR ORIGIN US 54% EUROPE 45% OTHER 1%
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: INTEGRATION TO FUEL THE PAY-TV VIRTUOUS CIRCLE SUBSCRIBER BASE [ARROW GRAPHIC] AND ARPU GROWTH [ARROW GRAPHIC] INCREASE CUSTOMER INTEREST FOR CANAL+/UNIVERSAL REVENUE GROWTH PRODUCTS AND SERVICES DEVELOPMENT OF [ARROW GRAPHIC] CONTENT, NEW PRODUCTS AND [ARROW GRAPHIC] INTERACTIVE SERVICES [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: INTEGRATION FOR EFFICIENCY AND RATIONALISATION
OPERATING COSTS PURCHASING IT OVERHEADS EXAMPLES EXAMPLES EXAMPLES EXAMPLES Acquisitions: centralize - DVD, VHS - data center - Overlap VU/ program acquisitions teams CANAL+ Group and align strategies - magazines - WAN - Overlap CANAL+/ Technical operations: - PC Universal consolidate broadcast and - print TV "back-office" functions, - SAP - global reengineering centralise sourcing of of systems processes materials (film, - marketing - application and support processing...), merge rights functions and royalty management - travel developments Distribution: consolidate - fleet video and film distribution efforts Technology costs: use CANAL+ Technologies for Universal's development in content control and digital rights management Internet development costs: sharing investments in content, developing B-to-B extranet using Universal model, leverage CANAL+'s web development infrastructures
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: INTEGRATION FOR EFFICIENCY AND RATIONALISATION OPERATING PURCHASING I.T. OVERHEADS COSTS [ARROW GRAPHIC] [ARROW GRAPHIC] [ARROW GRAPHIC] COST SAVINGS OF EURO 60-80 [ARROW GRAPHIC] MILLION P.A. OVER THE NEXT THREE YEARS
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: INCREASING REVENUES THROUGH CROSS-FERTILISATION INCREASE EXISTING "IN-HOUSE" INTEGRATION OF REVENUE STREAMS EXTERNALISED FUNCTIONS EXAMPLES EXAMPLES -------- -------- - - Broadcasting: launch and - Studio: Universal Pictures promote USG channels across all International Video to CANAL+ platforms manage all CANAL+/USG video distribution - - Studio: cross promote all USG films, videos, and products across - Internet: CANAL NUMEDIA CANAL+ subscriber base and to develop all USG web media platforms (channels, sites magazines...) - - Internet: develop e-commerce of all CANAL+ and USG products across all CANAL+ and USG portals (ex. virtual theme park)
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: INCREASING REVENUES THROUGH CROSS-FERTILISATION ENHANCING IN-HOUSE EXISTING INTEGRATION OF REVENUES EXTERNALISED FUNCTIONS [ARROW GRAPHIC] [ARROW GRAPHIC] REVENUE INCREASES ESTIMATED AT AROUND EURO 450 MILLION P.A. OVER THE NEXT FEW YEARS GIVING AN EBITDA IMPACT IN THE RANGE OF EURO 50 MILLION [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: CREATING NEW BUSINESSES AND NEW REVENUE STREAMS EXAMPLE: CREATING A LEADING VIDEO ON DEMAND OPERATOR CONTENT TECHNOLOGY DISTRIBUTION A LEADING VOD OPERATOR - -------------------- --------------------------- ----------------- -------------------------- [STUDIO CANAL LOGO] [VIZZAVI LOGO] - IN 2005, BROADBAND [UNIVERSAL LOGO] [CANAL+ TECHNOLOGIES LOGO] PENETRATION ESTIMATED [HYPNOTIC LOGO] AT 20-30% OF EUROPEAN - ACCESS CONTROL CANAL+ AND TV HOMES AND 35% IN THE - - LIBRARY OF 9,600 - INTERACTIVE USG WEBSITES US; TOTAL VOD MARKET MOVIES APPLICATIONS POTENTIAL OF $2.2 BN - - APPROX. 40 NEW - POTENTIAL MARKET FILMS P.A. FROM SHARE OF 15-20% IN WHICH 10 TO 15 EUROPE FOR CANAL+/ EUROPEAN FILMS UNIVERSAL'S VOD PLATFORM - - SHORT FILMS -------------------------- LIBRARY - -------------------- --------------------------- -----------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: CREATING NEW BUSINESSES EXAMPLE: CREATING A LEADING MOVIE PORTAL FOR PROFESSIONALS AND CONSUMERS CONTENT SERVICES DISTRIBUTION A LEADING MOVIE PORTAL - -------------------- --------------------------- --------------- [STUDIO CANAL LOGO] - A UNIQUE [UNIVERSAL LOGO] [CANAL+ TECHNOLOGIES LOGO] CANAL+ AND PROMOTION AND USG SALES PLATFORM FOR WEBSITES CANAL+/USG AND VIVENDI UNIVERSAL - - ONE OF THE ALLOCINE.FR (UMG OR HAVAS) WORLD'S MOST MEDIA PRODUCTS: EXTENSIVE TICKETMASTER FILMS, VIDEOS, AUDIOVISUAL DVDS, CDS... RIGHTS DATABASES - 3-YEAR TARGET OF 4 WORLDWIDE TO 5 MILLION VISITORS IN EUROPE - -------------------- --------------------------- ---------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL: EXTENDING NEW MARKETS VOD/PORTAL [MAP GRAPHIC] [CANAL+ LOGO] [UNIVERSAL LOGO] [Graphic showing arrows VOD/PORTAL pointing to Great Britain and Germany] [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] INTEGRATION INTO VIVENDI UNIVERSAL: THE MEDIA CROSS FERTILIZATION - - EXCHANGING CONTENT IS A KEY DRIVER OF REVENUE SYNERGIES [DOUBLE ARROW GRAPHIC] [DOUBLE ARROW GRAPHIC] MUSIC [ARROW GRAPHIC] CD SALES PPV FEES MOVIE SOUNDTRACKS [ARROW GRAPHIC] TV ENTRANCE TICKETS THEME TV AND SUBSCRIPTIONS REVENUE MERCHANDISING [ARROW GRAPHIC] PARKS FILMS RIGHTS STREAMS ENTRANCE TICKET SALES OF SPECIALIZED ADVERTISING MAGAZINES SALES OF VIDEO GAMES [ARROW GRAPHIC] [ARROW GRAPHIC] [DOUBLE ARROW GRAPHIC] [DOUBLE ARROW GRAPHIC] PUBLISHING & INTERNET ENTERTAINMENT [DOUBLE ARROW GRAPHIC]
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] CANAL+/UNIVERSAL NEW DISTRIBUTION TOOLS [VOD, VERTICAL PORTAL,...] TOGETHER WITH NEW GENERATION OF SET TOP BOXES WILL GENERATE VALUE ENHANCING SYNERGIES. [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] TODAY, EXISTING INTERACTIVE SERVICES ALREADY ATTRACT SUBSCRIBERS - - 90 % OF SUBSCRIBERS USE INTERACTIVE SERVICES - - 66 % OF SUBSCRIBERS CONNECT THEIR SET-TOP-BOXES TO THE PHONE NETWORK - - 10 MILLION VISITS A MONTH TO THE INTERACTIVE WEATHER SERVICE - - 2.2 MILLION GAMERS A MONTH - - 1 MILLION PPV ORDERS A MONTH - - UP TO 25 BOUTIQUES OFFERED IN THE VIRTUAL MALL BEFORE THE END OF THE YEAR - - 25,000 BETTING ACCOUNTS ON HORSE RACES OPENED SINCE THE LAUNCH OF THE SERVICE (MID-APRIL 2000) [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] TOMORROW'S SET TOP BOX:A CATALYST OF CONVERGENCE BETWEEN TV AND INTERNET
- --------------------------- ---------------------------------- Specifications Display - ------------------------------- ---------------------------------- - - 2 input tuners - PC-type graphics - - Hard disk drive (30 Go) - High-quality TV(picture and sound) - - Extended Memory (56 Mb) - Simultaneous display of - - High-speed modem (56 K) graphics and video - ------------------------------- - 5 graphics panels: background, still-picture, video, graphic and cursor ---------------------------------- [PHOTOS OF SET TOP BOX, REMOTE CONTROL AND KEY BOARD AND VISA/AMERICAN EXPRESS LOGOS] ---------------------------------- Capabilities ---------------------------------- - Virtual Video on demand - ------------------------------ Connectivity - Audio recording and replay - ------------------------------ - - PC and all peripherals - Time shifting/VCR (printer, scanner, camera) - Copyright protection - - Video and audio peripherals (DVD, MP3, camcorders...)at - Interactive services high speed - Web access and navigation - - ADSL Modem - ------------------------------ - Secured payment - Video games ----------------------------------
[VIVENDI UNIVERSAL LOGO]
[CANAL+ LOGO] NEW REVENUE STREAMS FUELLING ARPU GROWTH - --------------------------- ------------------------------------------------------ - Advertising banners Advertising - Transaction fees on purchase leads - Share of telephone airtime - --------------------------- ------------------------------------------------------ - Revenues from purchases E-Commerce - Transaction fees (banking, betting...) - Share of telephone airtime - --------------------------- ------------------------------------------------------ Audio, - Fees per program VOD and Gaming - Usage time fees (network gaming) - Share of telephone airtime - --------------------------- ------------------------------------------------------ - Incremental and monthly fees for access to some Subscriptions interactive or Personal Video Recording services - --------------------------- ------------------------------------------------------ - Wholesale - Retail Consumer - PVRs Appliances - Gaming consoles - Interactive applications - --------------------------- ------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] STRONG ARPU POTENTIAL - - REVENUES GENERATED FROM WALLED GARDEN AND THROUGH VIZZAVI SERVICES AND PRODUCTS AVAILABLE ON THE G2 SET TOP BOXES, ESTIMATED AT AN ADDITIONAL EURO 10-EURO 30 PER USER PER MONTH
A RANGE OF 56 EURO TO 76 EURO EURO 28 EURO 46 PREMIUM PAY-PER-VIEW G2 ANALOGUE BASIC PAY-PER-VIEW PREMIUM BASIC DIGITAL PREMIUM
MULTISERVICE [VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] INTEGRATION INTO VIVENDI UNIVERSAL: INCREASING EXISTING REVENUES
- -------------------- -------------------- --------------- ------------------------ Multimedia Multi publishing In-house Cross products and Licensing talent pool Promotion Multi distribution - -------------------- -------------------- --------------- ------------------------ Movie Music artists Music Shelf space [ARROW GRAPHIC] [ARROW GRAPHIC] [DOUBLE ARROW GRAPHIC] (Music, Film, Sports) Soundtrack Film production Sports [ARROW GRAPHIC] [ARROW GRAPHIC] ------------------- [DOUBLE ARROW GRAPHIC] VIZZAVI Game Programming + [ARROW GRAPHIC] Animated and assets G2 Set Top Box Marchandising Characters --------------- (downloading and [ARROW GRAPHIC] Music, TV and storage) New Park attractions [ARROW GRAPHIC] Films Content + (ex the Gladiator, Games [DOUBLE ARROW GRAPHIC] Sub Magazine Jurassic Park) [ARROW GRAPHIC] TV theaters - -------------------- Prints + ----------------------- Coordination [ARROW GRAPHIC] Web Multi product retailors licensing for all Theme Park + (Packaging offers) media Print + Parks - -------------------- -------------------- -------------- ------------------------
[VIVENDI UNIVERSAL LOGO] {CANAL+ LOGO] INTEGRATION INTO VIVENDI UNIVERSAL: NEW REVENUES AND BUSINESSES
- -------------------------------- ----------------------------------- --------------------------------------- Customer loyalty International New products expansion and services - -------------------------------- ----------------------------------- --------------------------------------- - -------------------------------- ----------------------------------- --------------------------------------- - Export portals and ticketing - Virtual theme parks and - - Group wide program (clubs concepts Studios foot, music, student) (Allo Cine-Movie - Sport) (games, Education, Picture) [ARROW GRAPHIC] [ARROW GRAPHIC] - - In-house products as --------------------- -------------------------------- rewards Europe + US Web (CD - DVD) --------------------- -------------------------------- - Export Farm Club - Music, sports, games... - - Card Program Concept (Sub + ticketing) (Canal+ VIZZAVI) [ARROW GRAPHIC] - - Escalating discount for [ARROW GRAPHIC] -------------------------------- multiple product --------------------- E commerce Europe -------------------------------- --------------------- (Vizzavi+ Canalsat + canalplus.fr) - Marchandising Low churn rate close to --------------------------------------- CANAL+ level [ARROW GRAPHIC] - -------------------------------- --------------------- Europe + US --------------------- -----------------------------------
[VIVENDI UNIVERSAL LOGO] [CANAL+ LOGO] AN INTEGRATED COMPANY... ...bringing together the best of two worlds and spanning 4 businesses ----------------------- Vivendi-Universal TV/Film Division -----------------------
- -------------------- ------------------- ----------------------- ---------------------------- Production/library PAY TV Internet Technology - -------------------- ------------------- ----------------------- ---------------------------- [UNIVERSAL LOGO] [13TH STREET LOGO] [UNIVERSALONLINE*COM LOGO] [STUDIO UNIVERSAL LOGO] [SCI-FI LOGO] - ------------------------------------------------------------------------------------------------ [STUDIO CANAL LOGO] [CANAL+ LOGO] [CANAL NUMEDIA LOGO] [CANAL+ TECHNOLOGIES LOGO] [CLASSICS LOGO] [I TELEVISION LOGO] [SEASONS LOGO] [PLANETE LOGO] [CANAL JIMMY LOGO]
[VIVENDI UNIVERSAL LOGO] # # # [UNIVERSAL LOGO] RON MEYER UNIVERSAL STUDIOS GROUP [VIVENDI UNIVERSAL LOGO] [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] [UNIVERSAL LOGO] UNIVERSAL STUDIOS GROUP UNIVERSAL STUDIOS GROUP -----------------------
2000 CONSOLIDATED REVENUE 4.6 2000 CONSOLIDATED EBITDA 0.3
[BAR CHART] (#'S = EUROS, BILLIONS) [VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] UNIVERSAL STUDIOS GROUP UNIVERSAL STUDIOS GROUP CAGRS 2000 - 2002 -----------------
CONSOLIDATED REVENUE 7% CONSOLIDATED EBITDA >10%
[BAR CHART] [VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] UNIVERSAL STUDIOS GROUP THEME PARKS CAGR 2000 - 2002
ATTRIBUTED REVENUE ATTRIBUTED EBITDA THEME PARKS 16% 27%
[BAR CHART] [VIVENDI UNIVERSAL LOGO] # # # [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]
- ----------------------------------------------------- UNIVERSAL PICTURES WE'RE NOT JUST IS CREATIVELY AND MANAGING A STUDIO FINANCIALLY WE'RE MANAGING A STRONGER THAN IT TURNAROUND STORY HAS BEEN IN YEARS YOU MAY HAVE IN MIND - ----------------------------------------------------- HISTORICAL LOSSES YOU MAY ASSUME WE STILL HAVE OLD STYLE HOLLYWOOD MANAGEMENT
[VIVENDI UNIVERSAL LOGO]
- ------------------------------------------------- UNIVERSAL PICTURES THAT IS NO LONGER IS CREATIVELY AND ACCURATE AND IT FINANCIALLY NO LONGER APPLIES STRONGER THAN IT HAS BEEN IN YEARS - -------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
- ------------------------------------------------- UNIVERSAL PICTURES WE HAVE RETURNED TO IS CREATIVELY AND PROFITABILITY AND FINANCIALLY EXPECT TO GROW BY STRONGER THAN IT STICKING TO A HAS BEEN IN YEARS DISCIPLINED PLAN - -------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
- ---------------------------------------------------------- IN ORDER TO IMPROVE TODAY, PROCESS IS EVERYTHING OUR FINANCIAL RETURNS, WE HAD TO PROCESSES THAT REQUIRE: CHANGE THE CULTURE - RIGOR AT UNIVERSAL - ACCOUNTABILITY - DEBATE - ---------------------------------------------------------- - FLEXIBILITY - CONSENSUS BUILDING
[VIVENDI UNIVERSAL LOGO]
- ------------------------------------------------- IN ORDER TO IMPROVE AND WITH OUR OUR FINANCIAL BUSINESS PROCESSES RETURNS, WE HAD TO NOW IN PLACE, CHANGE THE CULTURE WE'RE CONFIDENT AT UNIVERSAL A CONSISTENT AND PROFITABLE SLATE IS ACHIEVABLE - --------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
- ------------------------------------------------- SLATE MANAGEMENT PROCESS ACCOUNTABLITY WE CHANGED OUR BUSINESS RISK PROTECTION FUNDAMENTALS IN 4 BASIC AREAS LEVERAGING OPPORTUNITY - ------------------------------------------------ ACROSS DIVISIONS
WHICH ENABLES US TO WORK WITHIN THE CORPORATE MANDATE TO LIMIT PRODUCTION SPENDING [VIVENDI UNIVERSAL LOGO]
- ------------------------------------------------- ------------------------- WE CHANGED SLATE MANAGEMENT OUR BUSINESS PROCESS ACCOUNTABLITY FUNDAMENTALS IN RISK PROTECTION 4 BASIC AREAS LEVERAGING OPPORTUNITY ACROSS DIVISIONS - ------------------------------------------------ -------------------------
AND TO DEMONSTRATE IMPROVED FINANCIAL RETURNS [VIVENDI UNIVERSAL LOGO] SLATE MANAGEMENT [VIVENDI UNIVERSAL LOGO]
UPG PLANS FILMS OVER A 24 MONTH PERIOD WHICH ARE DETERMINED BY - ----------------------- ------------------------ ----------------------- NUMBER GENRE DESCRIPTION 14-16 FILMS THRILLER TENTPOLE PER YEAR DRAMA EVENT COMEDY PORTFOLIO ROMANCE ACTION/ADVENTURE
[VIVENDI UNIVERSAL LOGO] - ------------------------------------------------------------------------------- THE PLANNING PROCESS PERMITS ENOUGH DEPTH IN THE PROGRAM TO - - FILL SLOTS WHEN A FILM FAILS TO COME TOGETHER - - PLAN MULTI-MILLION DOLLAR PROJECTS IN A SANE AND RESPONSIBLE MANNER - -------------------------------------------------------------------------------- [VIVENDI UNIVERSAL LOGO] -------------------------------------- FILM PLANNING -------------------------------------- - -------------------- 2 - 3 PER YEAR -------------------- [DR. SEUSS' HOW THE [JURASSIC PARK III GRINCH GRAPHIC] STOLE CHRISTMAS! GRAPHIC] - -------------------- -------------------- [arrow logo] [arrow logo] TENTPOLE FILMS - ------------------ [arrow logo] -------------------- SPECIAL EFFECTS CROSS DRIVEN PROMOTABLE - ------------------ ------------------- -------------------- [THE MUMMY RETURNS GRAPHIC] --------------------- [VIVENDI UNIVERSAL LOGO] ----------------------------------------------------- FILM PLANNING ----------------------------------------------------- - --------------------- ----------------------- [MEET THE [THE FAMILY MAN PARENTS 4 - 6 PER YEAR POSTER] POSTER] - --------------------- --------------------- [arrow logo] [arrow logo] EVENT FILMS - ---------------- [arrow logo] --------------- STAR STORY DRIVEN DRIVEN - ---------------- --------------- --------------- [CAPTAIN CORELLI'S MANDOLIN GRAPHIC] ---------------- [VIVENDI UNIVERSAL LOGO] ----------------------------------------------------- FILM PLANNING ----------------------------------------------------- - --------------------- ----------------------- [BRING IT ON [JOSIE 4 - 6 PER YEAR AND THE PUSSYCATS POSTER] POSTER] - --------------------- --------------------- [arrow logo] [arrow logo] SMALLER PORTFOLIO FILMS - ---------------- --------------- [AMERICAN [arrow logo] [arrow logo] [REDLINE PIE POSTER] POSTER] - ---------------- --------------- ---------------- -------------------------- -------------------- [NICHE [OTHER STUDIOS MARGINALIZE [CROSSOVER ORIENTED] THEIR SMALL FILMS. POTENTIAL] ---------------- WE EVENTIZE THEM] -------------------- -------------------------- [VIVENDI UNIVERSAL LOGO] THE COMBINATION OF - -------------------- --------------------------- SLATE SCHEDULING OVER COMPOSITION ----> 24 MONTH TIMEFRAME - -------------------- --------------------------- YIELDS [VIVENDI UNIVERSAL LOGO] - -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 MARCH 2000 THE HURRICANE 1/14 ERIN BROCKOVICH 3/17 ISN'T SHE GREAT 1/28 THE SKULLS 3/31 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2000 MAY 2000 JUNE 2000 U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30 ROCK VEGAS 4/28 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 AUGUST 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8 THE KLUMPS 7/30 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000 MEET THE PARENTS 10/6 THE GRINCH 11/17 THE FAMILY MAN 12/15 BILLY ELLIOT 10/13 ----------------------- -------------------- - ------------------- A BALANCED RELEASE SCHEDULE [VIVENDI UNIVERSAL LOGO] - -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 MARCH 2000 THE HURRICANE 1/14 ERIN BROCKOVICH 3/17 ISN'T SHE GREAT 1/28 THE SKULLS 3/31 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2000 MAY 2000 JUNE 2000 U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30 ROCK VEGAS 4/28 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 AUGUST 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8 THE KLUMPS 7/30 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000 MEET THE PARENTS 10/6 THE GRINCH 11/17 THE FAMILY MAN 12/15 BILLY ELLIOT 10/13 - ------------------- ----------------------- -------------------- WE LOOK TO SCHEDULE ACROSS THE CALENDAR WITH NO MORE THAN 2 FILMS PER MONTH [VIVENDI UNIVERSAL LOGO] L - -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 MARCH 2000 THE HURRICANE 1/14 ERIN BROCKOVICH 3/17 ISN'T SHE GREAT 1/28 THE SKULLS 3/31 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2000 MAY 2000 JUNE 2000 U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30 ROCK VEGAS 4/28 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 AUGUST 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8 THE KLUMPS 7/30 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000 MEET THE PARENTS 10/6 THE GRINCH 11/17 THE FAMILY MAN 12/15 BILLY ELLIOT 10/13 - ------------------- ----------------------- -------------------- WHERE FILMS ARE TIMED TO AUDIENCE AVAILABILITY [VIVENDI UNIVERSAL LOGO] - -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 ERIN THE HURRICANE 1/14 BROCKOVICH ISN'T SHE GREAT 1/28 MARCH 17, 2000 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JUNE 2000 [U-571 GRAPHIC] [GLADIATOR GRAPHIC] ADVENTURES OF ROCKY AND BULLWINKLE 6/30 APRIL 21, 2000 MAY 5, 2000 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: [BRING IT ON GRAPHIC] THE WATCHER 9/8 THE KLUMPS 7/30 AUGUST 25, 2000 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- NOVEMBER 2000 DECEMBER 2000 [MEET THE THE GRINCH 11/17 THE FAMILY MAN 12/15 PARENTS GRAPHIC] OCTOBER 6, 2000 - ------------------- ----------------------- -------------------- MORE THAN EVER IN OUR HISTORY, UPG HAS ADOPTED AGGRESSIVE POLICIES OF: - - CHALLENGING ASSUMPTIONS - - ADAPTING TO OPPORTUNITIES IN THE LANDSCAPE - - AND CREATING BOXOFFICE OPPORTUNITY 12 MONTHS A YEAR [VIVENDI UNIVERSAL LOGO] - -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 [ERIN THE HURRICANE 1/14 BROCKOVICH GRAPHIC] ISN'T SHE GREAT 1/28 $255 MM WORLDWIDE - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JUNE 2000 [U-571 GRAPHIC] [GLADIATOR GRAPHIC] ADVENTURES OF ROCKY $75 MILLION $420 MM WORLDWIDE AND BULLWINKLE 6/30 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: [BRING IT ON GRAPHIC] THE WATCHER 9/8 THE KLUMPS 7/30 $60 MILLION+ - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- NOVEMBER 2000 DECEMBER 2000 [MEET THE THE GRINCH 11/17 THE FAMILY MAN 12/15 PARENTS GRAPHIC] $29 MM OPENING - ------------------- ----------------------- -------------------- AND ITS WORKED [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 MARCH 2000 THE HURRICANE 1/14 ERIN BROCKOVICH 3/17 ISN'T SHE GREAT 1/28 THE SKULLS 3/31 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2000 MAY 2000 JUNE 2000 U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30 ROCK VEGAS 4/28 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 AUGUST 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8 THE KLUMPS 7/30 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000 MEET THE PARENTS 10/6 BILLY ELLIOT 10/13 THE GRINCH 11/17 THE FAMILY MAN 12/15 - ------------------- ----------------------- --------------------
JUST SOME OF OUR UPCOMING FILMS [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 MARCH 2000 THE HURRICANE 1/14 ERIN BROCKOVICH 3/17 ISN'T SHE GREAT 1/28 THE SKULLS 3/31 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2000 MAY 2000 JUNE 2000 U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30 ROCK VEGAS 4/28 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 AUGUST 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8 THE KLUMPS 7/30 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2000 DECEMBER 2000 MEET THE PARENTS 10/6 [THE GRINCH LOGO] BILLY ELLIOT 10/13 NOVEMBER 17, 2000 THE FAMILY MAN 12/15 - ------------------- ----------------------- --------------------
DIRECTED BY RON HOWARD AND STARRING JIM CARREY AS THE GRINCH [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2000 FEBRUARY 2000 MARCH 2000 THE HURRICANE 1/14 ERIN BROCKOVICH 3/17 ISN'T SHE GREAT 1/28 THE SKULLS 3/31 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2000 MAY 2000 JUNE 2000 U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30 ROCK VEGAS 4/28 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2000 AUGUST 2000 SEPTEMBER 2000 NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8 THE KLUMPS 7/30 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2000 NOVEMBER 2000 [THE FAMILY MAN LOGO] MEET THE PARENTS 10/6 THE GRINCH 11/17 BILLY ELLIOT 10/13 DECEMBER 15 - ------------------- ----------------------- --------------------
A HEARTWARMING HOLIDAY FILM STARRING NICOLAS CAGE [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2001 FEBRUARY 2001 MARCH 2001 HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S HANNIBAL(INT'L) MANDOLIN 3/16 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2001 MAY 2001 JUNE 2001 JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY PUSSYCATS 4/13 HOUSE OF 1000 CORPSES REDLINE 4/27 CAVEMAN'S VALENTINE - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2001 AUGUST 2001 SEPTEMBER 2001 JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001 K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND HOW HIGH - ------------------- ----------------------- --------------------
AND IN 2001 [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2001 MARCH 2001 [HANNIBAL LOGO] CAPTAIN CORELLI'S MANDOLIN 3/16 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2001 MAY 2001 JUNE 2001 JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY PUSSYCATS 4/13 HOUSE OF 1000 CORPSES REDLINE 4/27 CAVEMAN'S VALENTINE - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2001 AUGUST 2001 SEPTEMBER 2001 JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001 K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND HOW HIGH - ------------------- ----------------------- --------------------
ANTHONY HOPKINS RETURNS AS HANNIBAL LECTER, CO-STARRING JULIANNE MOORE AND DIRECTED BY RIDLEY SCOTT [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2001 FEBRUARY 2001 HEAD OVER HEELS 2/9 [CAPTAIN CORELLI'S HANNIBAL(INT'L) MANDOLIN LOGO] - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2001 MAY 2001 JUNE 2001 JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY PUSSYCATS 4/13 HOUSE OF 1000 CORPSES REDLINE 4/27 CAVEMAN'S VALENTINE - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2001 AUGUST 2001 SEPTEMBER 2001 JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001 K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND HOW HIGH - ------------------- ----------------------- --------------------
AN EPIC WWII DRAMA STARRING NICOLAS CAGE AND PENELOPE CRUZ. DIRECTED BY JOHN MADDEN (SHAKESPEARE IN LOVE) [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2001 FEBRUARY 2001 MARCH 2001 HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S HANNIBAL(INT'L) MANDOLIN 3/16 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2001 JUNE 2001 JOSIE & THE [THE DRAGONFLY PUSSYCATS 4/13 MUMMY HOUSE OF 1000 CORPSES REDLINE 4/27 RETURNS LOGO] CAVEMAN'S VALENTINE - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2001 AUGUST 2001 SEPTEMBER 2001 JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001 K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND HOW HIGH - ------------------- ----------------------- --------------------
BRINGING BACK BRENDAN FRASER AND THE CAST OF THE MUMMY. ALSO STARRING THE ROCK [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2001 FEBRUARY 2001 MARCH 2001 HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S HANNIBAL(INT'L) MANDOLIN 3/16 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2001 MAY 2001 JUNE 2001 JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY PUSSYCATS 4/13 HOUSE OF 1000 CORPSES REDLINE 4/27 CAVEMAN'S VALENTINE - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- AUGUST 2001 SEPTEMBER 2001 [JURASSIC PARK III LOGO] AMERICAN PIE II SPY GAME 9/7 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001 K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND HOW HIGH - ------------------- ----------------------- --------------------
THE WORLD'S MOST POWERFUL PREDATORS ARE BACK. FROM PRODUCER STEVEN SPIELBERG [VIVENDI UNIVERSAL LOGO]
- -------------------- ----------------------- --------------------- JANUARY 2001 FEBRUARY 2001 MARCH 2001 HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S HANNIBAL(INTL) MANDOLIN 3/16 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- APRIL 2001 MAY 2001 JUNE 2001 JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY PUSSYCATS 4/13 HOUSE OF 1000 CORPSES REDLINE 4/27 CAVEMAN'S VALENTINE - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- JULY 2001 SEPTEMBER 2001 [AMERICAN PIE 2 JURASSIC PARK III LOGO] SPY GAME 9/7 - ------------------- ----------------------- -------------------- - ------------------- ----------------------- -------------------- OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001 K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND HOW HIGH - ------------------- ----------------------- --------------------
THE CAST AND FILMMAKERS RETURN [VIVENDI UNIVERSAL LOGO] -------------------------------------------------- BRIDGET JONES DIARY FROM WILDLY POPULAR NOVEL WITH RENEE ZELLWEGER, HUGH GRANT AND COLIN FIRTH -------------------------------------------------- -------------------------------------------------- DRAGONFLY A SUPERNATURAL THRILLER FROM TOM SHADYAC STARRING KEVIN COSTNER -------------------------------------------------- -------------------------------------------------- SPY GAME A SPY THRILLER FROM TONY SCOTT STARRING ROBERT REDFORD AND BRAD PITT -------------------------------------------------- -------------------------------------------------- K-PAX AN INSPIRATIONAL STORY STARRING KEVIN SPACEY -------------------------------------------------- THE BOURNE IDENTITY FROM THE BESTSELLING NOVEL BY ROBERT LUDLUM STARRING MATT DAMON -------------------------------------------------- -------------------------------------------------- A BEAUTIFUL MIND A DRAMA STARRING RUSSELL CROWE DIRECTED BY RON HOWARD -------------------------------------------------- [VIVENDI UNIVERSAL LOGO] PROCESS ACCOUNTABILITY [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- UPG MAINTAINS DILIGENCE AND ACCOUNTABILITY THROUGHOUT THE FILMMAKING PROCESS ------------------------------------------------------- [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] LIKE ANY STUDIO, WE ARE BARRAGED WITH FILMMAKING OPPORTUNITIES [IMAGINE LOGO] [BEACON LOGO] [JERSEY FILMS LOGO] [WORKING TITLE FILMS LOGO] [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] OUR PRIMARY SUPPLIERS HAVE EXCELLENT TRACK RECORDS FOR DELIVERING COMMERCIAL AND CRITICAL SUCCESSES [IMAGINE LOGO] [BEACON LOGO] [JERSEY FILMS LOGO] [WORKING TITLE FILMS LOGO] [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] AT UNIVERSAL, NO FILM IS UNDERTAKEN WITHOUT PASSING THROUGH OUR RIGOROUS GREENLIGHTING PROCESS GREENLIGHTING REQUIRES CONSENSUS BUILDING AND DEBATE [IMAGINE LOGO] [BEACON LOGO] [JERSEY FILMS LOGO] [WORKING TITLE FILMS LOGO] [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] WE SOLICIT PROJECTIONS FROM: - ---------------------------------------------------- THEATRICAL MARKETING AND DISTRIBUTION - ---------------------------------------------------- - ---------------------------------------------------- VIDEO AND DVD - ---------------------------------------------------- - ---------------------------------------------------- TELEVISION - ---------------------------------------------------- - ---------------------------------------------------- CONSUMER PRODUCTS - ---------------------------------------------------- [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] DIVISIONS ARE HELD ACCOUNTABLE FOR THEIR PROJECTION REVENUES AND COSTS - ---------------------------------------------------- THEATRICAL MARKETING AND DISTRIBUTION - ---------------------------------------------------- - ---------------------------------------------------- VIDEO AND DVD - ---------------------------------------------------- - ---------------------------------------------------- TELEVISION - ---------------------------------------------------- - ---------------------------------------------------- CONSUMER PRODUCTS - ---------------------------------------------------- [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] UPG CAREFULLY PLANS AND SUPERVISES FILMS IN PRODUCTION - ----------------------------- ---------------------------------- CAREFUL AGGRESSIVE PRE-PRODUCTION PRODUCTION ========> SUPERVISION - ----------------------------- ---------------------------------- AGGRESSIVE SUPERVISION IN PRE-PRODUCTION, PRODUCTION, AND POST-PRODUCTION OFFERS SPECIFIC OPPORTUNITIES TO REASSESS OUR ASSUMPTIONS AND ADJUST IF NECESSARY [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] UPG CAREFULLY PLANS AND SUPERVISES FILMS IN PRODUCTION - ----------------------------- ---------------------------------- CAREFUL AGGRESSIVE PRE-PRODUCTION PRODUCTION ========> SUPERVISION - ----------------------------- ---------------------------------- ONE BENEFIT OF THIS PROCESS IS THAT IT ALLOWED US TO GAMBLE ON FIRST TIME DIRECTORS [AMERICAN PIE POSTER] [THE BEST MAN POSTER] [BRING IT ON POSTER] [BILLY ELLIOT POSTER]
[ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] UPG CAREFULLY PLANS AND SUPERVISES FILMS IN PRODUCTION - ----------------------------- ---------------------------------- CAREFUL AGGRESSIVE PRE-PRODUCTION PRODUCTION ========> SUPERVISION - ----------------------------- ---------------------------------- AND MANAGE THE BIGGER MORE ELABORATE PRODUCTIONS [GLADIATOR POSTER] [DR. SEUSS' HOW THE GRINCH STOLE CHRISTMAS POSTER] [ERIN BROCKOVICH POSTER]
[ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] UPG CAREFULLY PLANS AND SUPERVISES FILMS IN PRODUCTION - ----------------------------- ---------------------------------- CAREFUL AGGRESSIVE PRE-PRODUCTION PRODUCTION ========> SUPERVISION - ----------------------------- ---------------------------------- AND THE PICTURES HAVE DELIVERED - -------------------------------------------------------------------------------- - - AMERICAN PIE GROSSED 13X BUDGET - - BEST MAN BROUGHT BACK BUDGET ITS OPENING WEEKEND - - BRING IT ON WILL GROSS 6X BUDGET - - ERIN BROCKOVICH GROSSED $255 MILLION WORLDWIDE - - GLADIATOR GROSSING $420 MILLION WORLDWIDE - AND COUNTING! [ ]===================[ ]===================[ ]====================[ ] ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION [VIVENDI UNIVERSAL LOGO] RISK PROTECTION [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- BECAUSE OF INDUSTRY DYNAMICS, THE MOTION PICTURE BUSINESS IS FUNDAMENTALLY A LOW RETURN BUSINESS. AS A RESULT, WE MANAGE OUR INVESTMENT RIGOROUSLY. ------------------------------------------------------- [VIVENDI UNIVERSAL LOGO] - ----------------------------- ---------------------------------- UPG MANAGES IN ORDER TO HAVE A ITS SLATE WITHIN FULL SLATE, UPG HAS TO A CORPORATE MANDATED ========> MAKE CHOICES PRODUCTION CAP - ----------------------------- ---------------------------------- WE CONSIDER A VARIETY OF FINANCING ARRANGEMENTS IN ORDER TO BALANCE THE LIMITS OF PRODUCTION SPENDING AGAINST THE PROPER MIX OF RIGHTS [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- RETAIN WORLDWIDE RIGHTS ------------------------------------------------------- [THE MUMMY RETURNS POSTER] [JURASSIC PARK III POSTER] [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- STUDIO JOINT VENTURES ------------------------------------------------------- - ---------------------------- GLADIATOR [GLADIATOR PHOTO] A BEAUTIFUL MIND JOINT VENTURES WITH DREAMWORKS BOTH STARRING RUSSELL CROWE - ---------------------------- [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- OPPORTUNISTIC RIGHTS SALES ------------------------------------------------------- - ---------------------------- K-PAX [PHOTO] ABILITY TO FINANCE 65% OF THE FILM IN EXCHANGE FOR INTERNATIONAL TERRITORIES - ---------------------------- [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- CONTINUING BUSINESS RELATIONSHIPS ------------------------------------------------------- WHICH HAVE THE BENEFIT OF PROVIDING ONGOING CREATIVE OPPORTUNITIES [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- CONTINUING BUSINESS RELATIONSHIPS ------------------------------------------------------- UNIVERSAL HAS THE OPTION [BEACON LOGO] TO ACQUIRE DOMESTIC RIGHTS TO BEACON'S FILMS FOR LESS THAN 40% OF THE BUDGET [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- CONTINUING BUSINESS RELATIONSHIPS ------------------------------------------------------- OUR RELATIONSHIP BROUGHT US: [BEACON LOGO] - - THE SUMMER'S SUPRISE HIT: BRING IT ON - - THE FAMILY MAN, STARRING NICOLAS CAGE - - SPY GAME, WITH ROBERT REDFORD AND BRAD PITT [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- CONTINUING BUSINESS RELATIONSHIPS ------------------------------------------------------- PREVIOUSLY A JOINT VENTURE WITH [WORKING TITLE FILMS LOGO] CANAL+ - THAT IS WHOLLY WITHIN THE VIVENDI UNIVERSAL FAMILY [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- CONTINUING BUSINESS RELATIONSHIPS ------------------------------------------------------- BROUGHT US NOTTING HILL AND [WORKING TITLE FILMS LOGO] THE ONGOING PRODUCTION OUTPUT OF THE MOST SUCCESSFUL OVERSEAS SUPPLIER OF FILMS [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- CONTINUING BUSINESS RELATIONSHIPS ------------------------------------------------------- WITH UPCOMING [WORKING TITLE FILMS LOGO] FILMS TO INCLUDE: [CAPTAIN CORELLI'S MANDOLIN POSTER] [BRIDGET JONE'S DIARY POSTER] [BILLY ELLIOTT POSTER] [PHOTO] [VIVENDI UNIVERSAL LOGO] UPG BUILDS FRANCHISES TO PROTECT RISK FRANCHISES ARE MORE PREDICTIVE - ------------------------------------- ---------------------------------------- AUDIENCES ALREADY KNOW ALLOWING US TO CAPTURE AND LOVE THESE CHARACTERS, COMPETITIVE ADVANTAGE SO THEY ARE EASIER AND OF BRANDING AND SYNERGY LESS EXPENSIVE TO RE-INTRODUCE - ------------------------------------- ---------------------------------------- IN THE 1990S, [THE MUMMY POSTER] [AMERICAN PIE POSTER] 8 OF 10 UNIVERSAL SEQUELS WERE PROFITABLE IN 1999, UNIVERSAL BUILT 2 NEW FRANCHISES [VIVENDI UNIVERSAL LOGO] UPG BUILDS FRANCHISES TO PROTECT RISK UNIVERSAL'S BUSINESS PROCESS ALLOWS FOR EFFECTIVE TURNAROUND OF FRANCHISE THE COMPETITION WHILE UNIVERSAL IS IS MIRED IN IN PRODUCTION DEVELOPMENT [JURASSIC PARK III POSTER] [AMERICAN PIE POSTER] - --------------------- MIB2 JUMJANJI 2 ZORRO 2 - --------------------- [THE MUMMY RETURNS POSTER] [HANNIBAL POSTER] [VIVENDI UNIVERSAL LOGO] LEVERAGING OPPORTUNITY ACROSS DIVISIONS ---------------- THE GRINCH MODEL [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------- IN ORDER TO MAXIMIZE RETURNS, UPG COORDINATES WITH EVERY BUSINESS UNIT TO SEEK NEW BUSINESS OPPORTUNITY AND MAXIMIZE ANCILLARY REVENUE ------------------------------------------------------- [VIVENDI UNIVERSAL LOGO] CROSS PROMOTING THE GRINCH WAS A COMPANY-WIDE IMPERATIVE ------------------------------------- PROMOTIONAL PARTNERS ------------------------------------- [PHOTO] ========> [HERSHEY'S LOGO] [SPRITE LOGO] [VISA LOGO] [KELLOGG'S LOGO] [WENDY'S LOGO] [NABISCO LOGO] [ZIPLOC LOGO] [UNITED STATES POSTAL SERVICE LOGO] ------------------------------------- OVER $200 MILLION IN SUPPORT $65 MILLION IN MEDIA LARGEST PROMOTIONAL CAMPAIGN OF THE YEAR - AND UNIVERSAL'S LARGEST CAMPAIGN EVER -------------------------------------
[VIVENDI UNIVERSAL LOGO] CROSS PROMOTING THE GRINCH WAS A COMPANY-WIDE IMPERATIVE ------------------------------------- CONSUMER PRODUCTS ------------------------------------- [PHOTO] [GRINCH HAT PHOTO] [GRINCH CLOTHING PHOTO] =========> [GRINCH SNEAKER GRAPHIC] ------------------------------------- OVER 1,000 PRODUCTS FROM OVER 100 COMPANIES SOLD IN RETAILERS AROUND THE WORLD ------------------------------------- [VIVENDI UNIVERSAL LOGO] CROSS PROMOTING THE GRINCH WAS A COMPANY-WIDE IMPERATIVE ------------------------------------- THEME PARKS ------------------------------------- [PHOTO] ========> [PHOTO] ------------------------------------- GRINCHMAS AT UNIVERSAL HUGE DISPLAYS AT ALL THEME PARKS FOR HOLIDAY '00 ------------------------------------- [VIVENDI UNIVERSAL LOGO] CROSS PROMOTING THE GRINCH WAS A COMPANY-WIDE IMPERATIVE ------------------------------------- MUSIC ------------------------------------- [PHOTO] ========> [THE GRINCH WHO STOLE CHRISTMAS POSTER] ------------------------------------- SOUNDTRACK FROM INTERSCOPE FEATURING TOP COUNTRY, ROCK, HIP HOP AND ALTERNATIVE ARTISTS ------------------------------------- [VIVENDI UNIVERSAL LOGO] CROSS PROMOTING THE GRINCH WAS A COMPANY-WIDE IMPERATIVE [PHOTO] ------------------------------------ BUT THERE ARE PIECES MISSING ========> IN THE FUTURE, THE DIVISIONS OF VIVENDI UNIVERSAL WILL COMPLETE THE PUZZLE ------------------------------------ [VIVENDI UNIVERSAL LOGO] CROSS PROMOTING THE GRINCH WAS A COMPANY-WIDE IMPERATIVE [PHOTO] ------------------------------------ IN THE FUTURE, THIS KIND OF PROPERTY WOULD BE ========> LEVERAGED ACROSS ALL OF THE VIVENDI UNIVERSAL DIVISIONS - VIZZAVI - WIRELESS - CANAL + - SUBSCRIBERS - HAVAS - GAMES ------------------------------------ [VIVENDI UNIVERSAL LOGO] LOOKING TO THE FUTURE [VIVENDI UNIVERSAL LOGO] - --------------------------------------- A GLOBAL ORGANIZATION WITH OVER 1,200 EMPLOYEES. HERE'S WHO RESPONSIBLE FOR: WE ARE TODAY - DEVELOPMENT OF THEATRICAL, MADE FOR VIDEO AND TV ANIMATION PRODUCT - --------------------------------------- - DOMESTIC AND INTERNATIONAL PRODUCTION - WORLDWIDE THEATRICAL AND VIDEO DISTRIBUTION - SPECIALTY FILM PRODUCTION, ACQUISITION AND DISTRIBUTION [VIVENDI UNIVERSAL LOGO] - --------------------------------------- REVENUE BREAKDOWN HERE'S WHO [PIE CHART] WE ARE TODAY - ---------------------------------------
TELEVISION 25% OTHER 5% THEATRICAL 25% HOME VIDEO 45%
[VIVENDI UNIVERSAL LOGO] - --------------------------------------- REVENUE BREAKDOWN HERE'S WHO [PIE CHART] WE ARE TODAY - --------------------------------------- THEATRICAL 25% ------------------------------------- THEATRICAL 55% NORTH AMERICA 45% REST OF WORLD ------------------------------------- [VIVENDI UNIVERSAL LOGO] - --------------------------------------- REVENUE BREAKDOWN HERE'S WHO [PIE CHART] WE ARE TODAY - --------------------------------------- HOME VIDEO 45% ------------------------------------- HOME VIDEO 60% NORTH AMERICA 40% REST OF WORLD ------------------------------------- [VIVENDI UNIVERSAL LOGO] REVENUE BREAKDOWN THE MAJORITY OF THE REVENUES ARE FROM NORTH AMERICA [PIE CHART] THERE ARE TREMENDOUS OPPORTUNITIES TO EXPAND HOME VIDEO 45% OUR REVENUE ACROSS THE WORLD THROUGH COMBINED VIVENDI UNIVERSAL ASSETS ------------------------------------- HOME VIDEO 60% NORTH AMERICA 40% REST OF WORLD ------------------------------------- [VIVENDI UNIVERSAL LOGO] -------------------------------------------------------------------- KEY GROWTH --------------------------------------------------------------------- THE DVD PLATFORM IS PROVIDING ENORMOUS ANCILLARY VALUE TO OUR PROPERTIES [JAWS POSTER] [THE MUMMY POSTER] [GALAXY QUEST POSTER] [END OF DAYS POSTER] [AMERICAN PIE POSTER] [ERIN BROCKOVICH POSTER] [SAVING PRIVATE RYAN POSTER] [THE BONE COLLECTOR POSTER] USHV HAS 8 DVD TITLES SHIPPING OVER 1 MILLION UNITS - MORE THAN ANY OTHER STUDIO INCLUDING ERIN BROCKOVICH, THE FIRST FEMALE DRIVEN TITLE TO CROSS THE EXCLUSIVE 1MM UNIT THRESHOLD [VIVENDI UNIVERSAL LOGO] -------------------------------------------------------------------- KEY GROWTH -------------------------------------------------------------------- - -------------------------------------------------------------------------------- - - BY END OF FISCAL 2000, USHV DISTRIBUTED 5 OF THE TOP 20 SELLING DVD TITLES OF ALL TITLE - - FY00 FULL YEAR DOMESTIC DVD REVENUE GREW APPROXIMATELY 90% OVER FY99. Q4 REVENUE WAS UP NEARLY 140% YEAR OVER YEAR - -------------------------------------------------------------------------------- [VIVENDI UNIVERSAL LOGO] -------------------------------------------------------------------- KEY GROWTH -------------------------------------------------------------------- OVER 2 MM DVD UNITS HAVE BEEN ORDERED ON JURASSIC PARK AND LOST WORLD [JURASSIC PARK POSTER] [THE LOST WORLD POSTER] AND IN A DVD INDUSTRY FIRST - WE ARE PROVIDING A HOTLINK TO THE SET OF JURASSIC PARK 3; PROVIDING A NEW MARKETING TOOL TO REACH A DEDICATED FANBASE [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------------------------- RE-INVENTING OURSELVES IN THE DIGITAL AGE -------------------------------------------------------------------------
- - CREATING NEW DISTRIBUTION - VIDEO-ON-DEMAND CHANNELS FOR TRADITIONAL FEATURE FILM CONTENT - - REDUCING PRODUCTION, - E-CINEMA MARKETING AND DISTRIBUTION - E-PROCUREMENT COSTS - EXTRANET ACTIVITIES (EXHIBITORRELATIONS.COM) - - INCREASE MARKETING ========> - LEVERAGE INTERNET TO MARKET EFFICIENCY DIRECTLY TO CONSUMERS IN A MORE TARGETED WAY - - CREATE NEW PRODUCTS/BUSINESSES AROUND - SOURCING IDEAS AND TALENT ON- UNIVERSAL'S CORE PRODUCTION LINE AND MARKETING ACTIVITIES, - OUT-TAKES, BEHIND-THE-SCENES AND FEATURE FILM LIBRARY FOOTAGE - CREATIVE MARKETING MATERIALS - - CREATE/INVEST IN NEW - FILM CLIPS (e.g. E-GREETINGS) CONTENT BUSINESSES THAT LEVERAGE UNIVERSAL'S - HYPNOTIC.COM - CONTROLLING PRODUCTION, MARKETING AND INTEREST IN SHORT FILMS FOR DISTRIBUTION OPERATIONS INTERNET THAT CAN BUILD INTO A BROADER VERTICAL MOVIE PORTAL
[VIVENDI UNIVERSAL LOGO] ------------------------------------------------------------------------- VIVENDI UNIVERSAL SYNERGIES ------------------------------------------------------------------------- COMBINED, THE PRODUCTION AND DISTRIBUTION SYNERGY POTENTIAL FOR UNIVERSAL PICTURES AND STUDIO CANAL IS EXPECTED TO DRIVE STRONG REVENUE GROWTH... - ------------------------------------- ---------------------------------------- PRODUCTION SYNERGIES DISTRIBUTION SYNERGIES - - PURSUE CO-PRODUCTION - UTILIZE COMMON THEATRICAL, OPPORTUNITIES VIDEO AND TV DISTRIBUTION - - COMBINE INTERNATIONAL - ASSUMING DISTRIBUTION OF STUDIO ACQUISITION EFFORTS CANAL PRODUCT ON VIDEO - - MINE LIBRARIES FOR PRODUCT - ESTABLISH DIRECT DISTRIBUTION REMAKES INCLUDING FILM, DIRECT- OPERATIONS IN TERRITORIES TO-VIDEO, AND TV ANIMATION CURRENTLY COVERED BY THIRD - - LEVERAGE UNIVERSAL PRODUCTION PARTIES ASSETS - ------------------------------------- ---------------------------------------- ...RESULTING IN AN EXPECTED 10% REVENUE LIFT...IN ADDITION TO LOWER INVESTMENT SPENDING AND OVERHEAD COST BENEFITS [VIVENDI UNIVERSAL LOGO] ------------------------------------------------------------------------- VIVENDI UNIVERSAL ------------------------------------------------------------------------- WE WILL ALSO BE LEVERAGING OUR ASSETS ACROSS ALL THE VIVENDI UNIVERSAL DIVISIONS SHORT TERM LONG TERM - ------------------------------------- ---------------------------------------- UPG WILL ACT AS ENABLER UPG WILL LEVERAGE PRODUCT - - FEEDING PRODUCT INTO ACROSS THE WIDE ARRAY OF PIPELINE EMERGING PLATFORMS - - ATTRACTING SUBSCRIBERS TO CAPITALIZING ON VIVENDI VIZZAVI AND CANAL + UNIVERSAL'S FOOTPRINT IN WIRELESS TECHNOLOGY - ------------------------------------- ---------------------------------------- [VIVENDI UNIVERSAL LOGO] IN THIS NEW AND DIVERSIFIED, GLOBAL ENTERTAINMENT COMPANY, UNIVERSAL PICTURES IS THE CONTENT FOCAL POINT FOR FILMED ENTERTAINMENT [CONSUMER ENTERTAINMENT ASSETS GRAPHIC] CONSUMER ENTERTAINMENT ASSETS
GLOBAL DISTRIBUTION CANAL CANAL + WITH OUR CONTENT IT IS A COMBINED SATELLITE IN PLACE AND OPERATION THAT OUR BRETHREN ONLY WORKS WITH <======= UNIVERSAL =======> LEADING THE A STRONG PICTURES WAY INTO THE CORE FEEDING DIGITAL AGE, THE COMPANY WE ARE CONFIDENT IN A STRONG AND SHINING FUTURE AT HAVAS MARKETING VIZZAVI VIVENDI UNIVERSAL STUDIO UNIVERSAL
[VIVENDI UNIVERSAL LOGO] ------------------------------------------------------------------------- SUMMARY ------------------------------------------------------------------------- RETURN TO PROFITABILITY DRIVE GROWTH FOR THE FUTURE - ------------------------------------- ---------------------------------------- CHANGED BUSINESS BUILDING ASSETS ACROSS FUNDAMENTALS NEW PLATFORMS - SLATE MANAGEMENT - - DVD - - PROCESS ACCOUNTABILITY - - DIGITIAL INITIATIVES - - - RIGOROUS RISK MANAGEMENT - - COMBINED SYNERGIES - -LEVERAGING OPPORTUNITIES - - ------------------------------------- ---------------------------------------- [VIVENDI UNIVERSAL LOGO] UPG'S RE-EMERGENCE IS REAL HERE TO STAY ...AND NOW EVEN MORE EXPLOITABLE WITH THE COMBINED ASSETS OF VIVENDI UNIVERSAL AND CANAL + [VIVENDI UNIVERSAL LOGO] # # # [UNIVERSAL LOGO] BLAIR WESTLAKE, CHAIRMAN UNIVERSAL TELEVISION & NETWORKS GROUP [VIVENDI UNIVERSAL LOGO] [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] [UNIVERSAL LOGO] UNIVERSAL TELEVISION & NETWORKS - - Universal Television Operates In Three Segments Of The Value Chain... [FLOW CHART] [ARROW GRAPHIC] [ARROW GRAPHIC] [ARROW GRAPHIC] - ------------------------------------------------------------------------------ PRODUCTION PROGRAM CHANNELS DISTRIBUTION DISTRIBUTION PLATFORMS JUST SHOOT ME CURRENT MOVIES 25 MLN MANAGED CABLE STEVE HARVEY 4,000 MOVIE TITLES CHANNEL SUBS DTH BLIND DATE 24,000 TV EPISODES 23 MLN JOINT DTT INT'L TALK SHOWS USA NETWORKS' VENTURE ADSL WORKING TITLE TV PROGRAMS (INT'L) CHANNEL SUBS ETC. >650 HOURS ANNUALLY - ------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] UNIVERSAL'S MOVIE LIBRARY - - MOVIES [X] 4,000 + feature length movies - Titles known worldwide [JURASSIC PARK PHOTO] [SHAKESPEARE IN LOVE PHOTO] [APOLLO 13 PHOTO] [LIAR, LIAR PHOTO]
[VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] UNIVERSAL'S MOVIE LIBRARY - -------------------------------- ------------------------------ - WORLD'S 2ND LARGEST - - CONTINUING ANNUITY MOVIE LIBRARY FROM WORLDWIDE LICENSING - WORLDWIDE ALL-MEDIA RIGHTS TO MOST TITLES - - HIGH EBITDA MARGIN FROM OLDER TITLES OF > 60% - -------------------------------- - RECOGNIZED LEADER IN HORROR GENRE [UNIVERSAL MOVIE LIBRARY GRAPHIC] - HITCHCOCK DIRECTED - -------------------------------- FILMS (PSYCHO, THE BIRDS...) - - FOUNDATION FOR CHANNEL CREATION - FRANKENSTEIN, DRACULA, WOLFMAN... [X] 100% genre-appropriate for Studio Universal [X] ~30% genre-appropriate for 13th Street - -------------------------------- ------------------------------
[VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] UNIVERSAL'S TV LIBRARY - - TELEVISION [X] 24,000 + television episodes [MAGNUM, P.I. PHOTO] [MURDER, SHE WROTE PHOTO] [COLUMBO PHOTO] [VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] UNIVERSAL'S TV LIBRARY - -------------------------------- ------------------------------------- - FOUNDATION FOR CHANNEL - - WORLD'S LARGEST LIBRARY CREATION OF ONE-HOURS AND LONG FORM TV PROGRAMS [X] 13th Street is only action & suspense channel designed - - WORLD'S LARGEST LIBRARY to take best advantage of a OF ACTION, MYSTERY AND Hollywood studio library SUSPENSE GENRES [X] > 50% of Universal's TV library is genre-appropriate for 13th Street - -------------------------------- ------------------------------------- [UNIVERSAL TV LIBRARY PHOTO] - -------------------------------- ------------------------------------- - - CONTINUING ANNUITY FROM WORLDWIDE - USA NETWORKS LICENSING PROGRAMMING PROVIDES CURRENT AND ADDITIONAL LIBRARY TV PRODUCT - - HIGH EBITDA MARGIN (EG: LAW AND ORDER, FOR OLDER TITLES XENA: PRINCESS WARRIOR) OF > 80% - -------------------------------- -------------------------------------
[VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] A GLOBAL TV LICENSING FOOTPRINT - - Geographic breakdown of 2000 TV revenues United States Europe 43% 43% [MAP] [MAP] Rest of the World 14% [VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] STRONG INTERNATIONAL BRANDS - - PROGRAMMING LINE-UP CONSISTS OF ~ 35% FROM UNIVERSAL LIBRARIES - - LOCAL PROGRAMMING PROVIDING THE MAJORITY OF THE BALANCE - "The Most Dangerous Address on Television" [13TH STREET PHOTO] - Basic Tier Action & Suspense Channel - "The Movie Channel From the Movie Makers" [STUDIO UNIVERSAL PHOTO] - Basic Tier Contemporary Movie Channel - Science Fiction Programming [SCI-FI PHOTO] - Most Widely Distributed Brand (22M HH) [VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] AN AGGRESSIVE ROLL-OUT: 7 CHANNELS IN 3 YEARS [USA NETWORK LOGO] LAT AM/BRAZIL * [13EME RUE LOGO] [SCI-FI LOGO] [STUDIO UNIVERSAL LOGO] [13TH STREET LOGO] [CALLE 13 LOGO] [STUDIO UNIVERSAL LOGO] FRANCE UK ITALY GERMANY SPAIN GERMANY NOVEMBER FEBRUARY MAY AUGUST SEPTEMBER 1997 1998 1998 1998 1999 ============================================================================================================================== 1ST CHANNEL ASSUMED 1ST CHANNEL 1ST CHANNEL IN 1ST CHANNEL IN SPAIN IN TERRITORY CONTROL FROM IN TERRITORY TERRITORY 2ND CHANNEL IN GERMANY USA [STUDIO UNIVERSAL LOGO] [STUDIO LOGO] SPAIN UK* MAY JANUARY 2000 2001 ======================================== 2ND 2ND CHANNEL IN CHANNEL IN TERRITORY TERRITORY
* USA BRAZIL AND UK "STUDIO" ARE 50% OWNED BY UNIVERSAL [VIVENDI UNIVERSAL LOGO] A PRESENCE ON BASIC TIERS IN EUROPE AND LATIN AMERICA 25 MILLION SUBSCRIBERS IN 30 COUNTRIES [SCI-FI LOGO] [STUDIO LOGO] UK 6.2M/n/a Multichannel HH: 8.5M Penetration: 72%/n/a Launch dates: 1995/2001
[13 EME RUE LOGO] FRANCE 1.7M Multichannel HH: 4.2M Penetration: 41% Launch date: 1997
[13TH STREET LOGO] [STUDIO UNIVERSAL LOGO] GERMANY 1.5M/1.4M Multichannel HH: 1.5M Penetration: 100%/90% Launch dates: 1998/1999
[CALLE 13 LOGO] [STUDIO UNIVERSAL LOGO] SPAIN 0.9M/0.1M Multichannel HH: 1.4M Penetration: 65%/7% Launch date: 1999/2000
[RUA 13 LOGO] [STUDIO UNIVERSAL LOGO] [SCI-FI LOGO] LATIN AM/BRAZIL 13.0M Multichannel HH: 15.3M Penetration: 85% Launch date: 1994
[STUDIO UNIVERSAL LOGO] ITALY 0.6M Multichannel HH: 1.4M Penetration: 42% Launch date: 1998
[JV CHANNELS LOGO] [UNIVERSAL LOGO] UNIVERSAL NETWORKS STRATEGY - -------------------------------------------------------------------------------- - USE PLATFORM LAUNCHES IN NEW TERRITORIES TO STRATEGIC GENERATE ADDITIONAL REVENUES BEYOND PROGRAM POSITIONING LICENSING - MAXIMIZE CARRIAGE THROUGH BASIC TIER PENETRATION - -------------------------------------------------------------------------------- BUILD NEW GLOBAL - FORTIFY LICENSING BUSINESS ASSETS - ESTABLISH CONSUMER BRANDS VIA COMPELLING THEMATIC APPROACH - -------------------------------------------------------------------------------- FOCUS ON - LOCAL EXECUTION MARKETING - AGGRESSIVE PROMOTION: NEW SUBSCRIBERS VS. RATINGS ONLY - -------------------------------------------------------------------------------- COST EFFICIENCIES - REALIZE ECONOMIES OF SCALE THROUGH MULTI- CHANNEL OPERATIONS - -------------------------------------------------------------------------------- CREATION OF LOCAL - CHANNELS PROVIDE A "LABORATORY" FOR LOW-COST PROGRAMMING PRODUCTION - -------------------------------------------------------------------------------- [VIVENDI UNIVERSAL LOGO] [UNIVERSAL LOGO] FINANCIAL TRENDS: STRONG OPERATING LEVERAGE - - EXISTING CHANNELS EXPECTED TO BREAK-EVEN IN 2002 - - 6 OF THE 9 EXISTING CHANNELS WILL BREAKEVEN IN 2001
------------------------------- 2000 E 2002 E ------------------------------- SUBSCRIBERS 25 Mln 32 Mln REVENUES $ 100 Mln $ 160 Mln EBITDA $ (20) Mln Breakeven -------------------------------
[VIVENDI UNIVERSAL LOGO] # # # [VIVENDINET LOGO] PHILIPPE GERMOND ANALYST PRESENTATION [VIVENDI UNIVERSAL LOGO] [VIVENDINET 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] [VIVENDINET LOGO] VIVENDINET - TABLE OF CONTENTS - - VivendiNet overview - - Thematic portals - - E-Nablers - - E-Vestor - - Vizzavi - - Summary [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET - STRUCTURE
E-VESTOR E-NABLERS 30% [VIVENTURES LOGO] 30% [ACUTE LOGO] 100% [AD 2-ONE LOGO] 40% [VIVENTURES 2 LOGO] 50% [@VISO LOGO] 100% [E-GLUE LOGO] 16% [SOFT BANK INC. 49% [EVOKE LOGO] SBCP LOGO] 49% [MESSAGEMEDIA LOGO] 20% [SOFT BANK INC. 49% [INTERLIANT LOGO] SBEV LOGO] 49% [E-LOAN LOGO] 38% [PEOPLEPC LOGO]
E-PORTALS 50% [SCOOT LOGO] [CANAL Numedia LOGO] 100% [I(France) LOGO] 50% [bonjour! LOGO] 50% 75% [ALLOCINE LOGO] 50% [VIZZAVI LOGO] 50% [CADRES ONLINE LOGO] 50% 100% [CANALPLUS.FR LOGO] 50% [ATMEDICA LOGO] 50% 50% 50% [01NET. LOGO] 50% [ARROW GRAPHIC] 50% [SQUAREFINANCE LOGO] 50% 40% [VODAFONE AIRTOUCH LOGO] [FLIPSIDE.COM LOGO] 40% 50% [EDUCATION.COM LOGO] 50% [HAVAS LOGO]
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET - STRATEGY - - To establish VIZZAVI as the leading European portal - - To develop thematic portals leveraging content skills and brand equity of Canal+, Havas and Universal - - To launch enablers exploiting our critical mass - - To invest in / develop promising new ventures related to and enhancing value of Vivendi Universal businesses [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET - OPERATIONAL MISSION - - To develop profitable business models for each Business Unit X EBITDA breakeven target X Audience as a yardstick - - To ensure operational execution and financial discipline - - To leverage the VivendiNet "network" (critical mass, talent, best practices) [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] THEMATIC PORTALS [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET - THEMATIC PORTALS
E-VESTOR E-NABLERS E-PORTALS 50% [SCOOT LOGO] [CANAL LOGO] 100% [I(France LOGO] 50% [bonjour! LOGO] 50% 75% [ALLOCINE LOGO] 50% [CADRES ONLINE LOGO] 50% 100% [CANALPLUS.FR LOGO] 50% [ATMEDICA LOGO] 50% 50% [01NET. LOGO] 50% 50% [SQUAREFINANCE LOGO] 50% 40% [FLIPSIDE.COM LOGO] 40% 50% [EDUCATION.COM LOGO] 50% [HAVAS LOGO]
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] THEMATIC PORTALS: BUSINESS MODEL - - Multimedia and multi-access brand/service development - - Focus on business models leading to profitability - - Multiple sources of revenues: X Advertising and direct marketing X E-commerce transaction fees (focus on C-to-B and C-to-C) X Content (subscription and syndication) - - International scope [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] [SCOOT LOGO] [WEB GRAPHIC] [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] SCOOT : MULTI ACCESS TRANSACTION INFOMEDIARY [SCOOT LOGO] - - Integrated Classifieds directory and Transaction platform - - Focus on local business services - - Seamless service: mobile (voice & WAP) and PC (web) - - Transaction-based business model - - Scoot Europe breakeven 2003 [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] SCOOT AND VIVENDINET PARTNERSHIP [SCOOT LOGO] - - VivendiNet owns 22.4% of Scoot plc and 50% of Scoot Europe - - End 2000: launch of Scoot France in partnership with Havas' Comareg and with SFR - - 2001: launch of Scoot Italy, Germany and Spain in partnership with Vizzavi [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] E-NABLERS [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET - E-NABLERS
E-VESTOR E-NABLERS E-PORTALS 100% [AD 2-ONE LOGO] 100% [E-GLUE LOGO]
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] E-NABLERS : RATIONALE FOR INVESTMENT - - Shared added-value steps across portals (Vizzavi and thematic portals) : hosting / connectivity, audience monetisation, site development... - - Optimised outsourcing: benchmark of current costs and centralised purchasing - - Creating a new company when critical mass, differentiation opportunity and market potential justify, and when profitable on stand-alone basis X Ad2One X E-glue [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] E-VESTOR [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET-E-VESTOR
E-VESTOR E-NABLERS E-PORTALS 30% [VIVENTURES LOGO] 30% [ACUTE LOGO] 40% [VIVENTURES 2 LOGO] 50% [@VISO LOGO] 16% [SOFT BANK INC. 49% [EVOKE LOGO] SBCP LOGO] 49% [MESSAGEMEDIA LOGO] 20% [SOFT BANK INC. 49% [INTERLIANT LOGO] SBEV LOGO] 49% [E-LOAN LOGO] 38% [PEOPLEPC LOGO]
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] RATIONALE FOR E-VESTOR ACTIVITY - - Intrinsic value creation - - Access to innovation - - Leverage participation of strategic partners - - Foster commercial relationships within Vivendi Universal X Viventures : one third of portfolio companies have commercial links with VivendiNet businesses, enhancing their access to emerging technology X @viso - Interliant and Evoke : preferred supplier of VivendiNet ; distribution by Cegetel - MessageMedia : preferred supplier of VivendiNet - PeoplePC : Vivendi pilot customer in Europe [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] [VIZZAVI LOGO] [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] MARKET TRENDS [VIZZAVI LOGO] - The Internet will be accessed through multiple devices: PC, TV, Mobile Handsets, PDA,... - In Europe, penetration rate of mobile services is and will remain higher than the rate of PCs - The 50/50 JV between Vodafone and Vivendi Universal aims to create the first fully multi-access portal competing against more PC-centric portals such as AOL and Yahoo! [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] A UNIQUE LEVERAGE [VIZZAVI LOGO] - A portal is like a TV Network: to be successful it needs premium content and a large access to customers - Vivendi Universal together with Vodafone provides mobile coverage for 15 European countries and TV access to 11 countries, with a potential reach of 100 million customers within 2 years - Vizzavi will benefit from the outstanding content of Vivendi Universal as a preferred content provider in Europe - In the USA Vivendi Universal will also be a preferred content provider to Vodafone customer base (Verizon Wireless) [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - REVIEW OF KEY TERMS [VIZZAVI LOGO] - - Minority stakes (~20%) in national Vizzavi subsidiaries held by mobile and pay-TV operators - - Revenue-sharing: Vizzavi keeps 50% of the gross margin from content, advertising and e-commerce revenues - - After 2 years, revenue-sharing reviewed country-by-country according to market conditions [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - STRATEGY [VIZZAVI LOGO] - - To become the leading European portal within 3 years - - To be the first offering seamless multi-access service with a focus on localised and personalised services - - Differentiation through preferred relationships with mobile operators (SFR and Vodafone companies), pay-TV operators (Canal +) and content producers (Universal) [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - STATUS UPDATE [VIZZAVI LOGO] - - Continued aggressive recruitment since May 2000 |X| Senior positions filled |X| 300+ total, recruited from sources including Chello, mViva, T-motion, BT Genie, ONDigital... - - Solid progress on Vizzavi Europe platform development |X| Key technology vendors selected and implementation underway |X| User interface well advanced |X| Hosting centre established - - Full-service PC and mobile portal by year end in major European markets [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - GEOGRAPHICAL ROLL-OUT [VIZZAVI LOGO] [MAP GRAPHIC] Launch In 2000 Launch in 2001 -------------- -------------- France Norway United Kingdom Sweden Germany Poland The Netherlands Belgium Italy Austria Hungary Romania Greece Spain Portugal [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - MAJOR INITIATIVES [VIZZAVI LOGO] - Aggressive rollout in major European countries: X UK X Germany X Italy X Spain - Early results on the PC side in mid-2001: X Audience X Transactions X Revenues [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - VIRTUAL ISP STRATEGY [VIZZAVI LOGO] - - Development of a virtual ISP approach |X| Commercial partnership with ISP's / telcos (Cegetel in France) |X| Vizzavi as default home page - - Push Vizzavi adoption among Vivendi-Universal customers |X| Connection kits inserted in SFR and Vodafone companies' mobile packs and in Canal+ set-top box packs |X| Connection kits bundled with Universal music CD's |X| Direct marketing and cross-selling |X| Connection kit downloadable from all VivendiNet sites - - << Reasonable >> pricing |X| Free-free phenomenon is transitory [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - CONTENT DEALS [VIZZAVI LOGO] - - Pan European deals: [GOOGLE LOGO] |X| Search engine, directories (including some Vizzavi exclusive products) [REUTERS LOGO] |X| Content for news, finance, companies, sports, technology, entertainment, video [FLIPSIDE.COM LOGO] |X| Largest game site in the US, will work together with us to create the interactive games platform. [UNIVERSAL MUSIC GROUP LOGO] |X| Close working relationship with Universal to licence their content [EDUCATION.COM! LOGO] |X| Education content for parents, children, and teachers targeting [ISYNDICATE LOGO] |X| Multipurpose content aggregator [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - BUSINESS MODEL [VIZZAVI LOGO] - - Revenue sources |X| Content subscription, download & streaming revenue |X| Transaction fees |X| Advertising banners and opt-in direct-marketing revenues - - Key drivers |X| Penetration on customer bases (mobile and Pay-TV operators) |X| Number of active users per device (mobile, PC, TV) |X| Revenue per active user per device - - Financials |X| EBITDA break-even expected by end 2003 |X| 2001-2002 cumulative investment : EURO1.2/1.6 bn (*) (*)depending on cash burn and IPO timing [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIZZAVI - SYNTHESIS [VIZZAVI LOGO] - - Challenges |X| Catching up with PC portals |X| Competition for internet talent |X| Mobile internet technology evolution (GPRS, UMTS) - - Benefits of scale and scope |X| Up to 60% savings on key European content (non-exclusive) and technology deals |X| Significant savings on operating costs |X| Unparalleled partnership opportunities - - Leverage from Vodafone and Vivendi Universal parentage |X| Customer bases |X| Relationship with operators |X| Content [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] SUMMARY [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET FINANCIALS: REVENUES - - More than EURO300 M economic revenues by 2002E (excluding Vizzavi) - - Diversified revenue sources - - Moving from advertising to direct marketing, transaction fees & content; expected breakdown of revenues by 2002: |X| 12%: Content |X| 40%: Advertising |X| 12%: Direct-marketing |X| 38%: Transaction fees - - Breakeven before 2003 for most portals [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET FINANCIALS: CASH CONSUMPTION (2000E) - - Portals |X| Operating cash need for thematic portals and Vizzavi: EURO300 M (including transfer of assets from mobile operators) - - Acquisitions |X| Scoot: EURO470 M (22.4% stake in Scoot Plc, 50% Scoot Belgium and NL) |X| i(France): EURO140 M - - E-vestors (funds) |X| Viventures, SBCP: EURO190 M |X| @viso: EURO60 M [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] SYNERGIES BETWEEN UNIVERSAL AND VIVENDINET - - Establish a common loyalty program across Vivendi Universal web properties leveraging Flipside experience - - Push Universal Music content and capabilities to Vizzavi music channel |X| Total synergy revenue impact 2003 (est.): EURO45 M |X| High sensitivity: 1% incremental Duet subscription represents EURO4.5 M EBITDA - - Leverage Universal Music CD retail distribution to promote Vizzavi's virtual ISP offer - - Low customer acquisition cost is key to virtual ISP profitability - - Roll-out of Universal Music web properties (GetMusic, Farmclub...) in Europe leveraging VivendiNet "network" - - Develop a movie portal leveraging Universal Studios and CanalNumedia assets [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] PARTNERSHIP DISCUSSIONS BETWEEN VIVENDINET - USA INTERACTIVE - - Accelerate TicketMaster (TM) roll-out in Europe |X| AlloCine and Pacercats |X| Leverage partnerships together with VivendiNet - - Establish TicketMaster Online / CitySearch (TMCS) in Europe |X| Joint development of a city guide network using citysearch know-how & platform and Bonjour / Scoot local presence. |X| Preferred placement within Vizzavi |X| Virtual ticketing through mobile phones with Vizzavi - - Replicate in Europe some USAi properties in partnership with @viso - - Explore other opportunities : HRN, ECS, PRC, ... [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] CONCLUSION - - VivendiNet is best positioned to benefit from the multi-access and broadband growth drivers : |X| Potential reach of Vizzavi in excess of 100M POPs in the 2-3 coming years |X| Potential broadband access through mobile (UMTS), iTV (net top box) and equal access on fixed (ADSL) |X| Critical rich-media consumer content : games, movies, education, sports, music... - - The scope of VivendiNet will be extended to cover Universal web properties after the merger - - VivendiNet continuing mission : to create value in the internet space across Vivendi Universal divisions (Universal, Canal+, Havas, Cegetel/SFR) [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDI UNIVERSAL.NET: THE WAY FORWARD
Hot Customer Content [UNIVERSAL MUSIC] [UNIVERSAL MOVIES] [CANAL+ TV] [HAVAS GAMES] [HAVAS EDUCATION]
Aggregation/Incubation [VIVENDI UNIVERSAL.NET]
Customer Bases [CANAL + PAY TV] [CEGETEL/SFR] [HAVAS] [UNIVERSAL] [VODAFONE]
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] APPENDIXES [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] VIVENDINET'S CONSOLIDATION PERIMETER
OWNERSHIP CONSOLIDATION SUBSIDIARY (%) METHOD REVENUE MODEL/DRIVERS BREAKEVEN TARGET - --------------- -------- ----------------- ----------------------------------------- -------------------- Vizzavi 50% Equity Advertising,Direct Marketing, Content Licensing, 2003 E-Commerce Ifrance 100% Global Advertising, E-Commerce 2002 Flipside 40% Global Advertising, Direct Marketing 2001 Canal Numedia 100% Global Advertising, Content Licensing, E-Commerce 2003 Allo-Cine 75% Global Advertising, Direct Marketing, E-Commerce 2002 Scoot plc 22% Equity Transaction fees 2002 Scoot Europe 50% Equity Transaction fees 2003 01 Net 50% Global Advertising, Content Licensing, E-Commerce 2003 Atmedica 50% Global Content & Technology Licensing 2003 Bonjour 50% Global Advertising, Content Licensing, E-Commerce 2002 Cadre on Line 50% Global Advertising, Direct Marketing 2001 Square Finance 50% Global Advertising, Content Licensing, E-Commerce 2003 Ad2One 100% Global Advertising, Datamining, Direct Marketing 2003
OWNERSHIP CONSOLIDATION SUBSIDIARY (%) METHOD E-VESTOR /E-CUBATOR - --------------- -------- ----------------- ----------------------------------------- Atviso 50% Proportional Incubator (european roll out of proven business models) Acute 20% Equity Incubator (early stage) Viventures I & II 30% - 40% Accounted as financial stakes Venture Capital Fund SBCP 20% Accounted as financial stakes Pre-IPO fund
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] NEW INITIATIVES - - Divento |X| International cultural portal providing editorial coverage and ticketing for major cultural events and institutions |X| Leverage synergies with Universal music products and Ticketmaster /Citysearch content and ticket offering - - Egery |X| 50/50 joint-venture between VivendiNet and PSA, possibly extended to strategic partners (operator, manufacturer) |X| Multi-access motorist services across Europe |X| B2B business model providing automobile-related content and services; will serve Vizzavi Auto channel [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] FLIPSIDE.COM
==================================== ======================================== AUDIENCE KEY ACHIEVEMENTS (WWW.FLIPSIDE.COM) ==================================== ======================================== - - ACQUISITION OF PRIZECENTRAL.COM REACH (%) (SOURCE: MMX) IN MARCH 2000 [BAR CHART] - - CREATION OF A LEADER IN THE ONLINE GAMING MARKET BY MERGING WON.NET WITH MARCH 00 5.1 PRIZECENTRAL.COM JUNE 00 6.1 AUG 00 8.1 - - LEADER IN THE US IN ONLINE GAMING, AND A TOP 15 SITE IN ---------------------------------------- TERMS OF TOTAL TIME SPENT ======================================== VISION AND STRATEGY - - LAUNCH OF THE NEW FLIPSIDE.COM ======================================== SITE IN SEPTEMBER 2000 - ONLINE GAMING IS THE FASTEST GROWING MARKET CONTENT ON THE INTERNET - FLIPSIDE.COM TO BECOME THE LEADING HOUSEHOLD NAME IN THE ONLINE GAMING SPACE - TO EXPAND FLIPSIDE.COM'S LEADERSHIP POSITIONS GEOGRAPHICALLY AND ACROSS MULTIPLE PLATFORMS - ------------------------------------ ----------------------------------------
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] EDUCATION.COM ==================================== ======================================== KEY ACHIEVEMENTS VISION AND STRATEGY ==================================== ======================================== - - LIVE VERSION LAUNCHED IN THE US - TO BECOME A LEADING EDUCATION DESTINATION FOR PARENTS, CHILDREN AND - - BETA VERSION IN EUROPE TEACHERS - - A RING OF SITES UNDER THE - TO LEVERAGE HAVAS' STRONG OFFLINE EDUCATION.COM UMBRELLA CONTENT AND KNOWHOW (HAVAS, BORDAS, NATHAN, ANAYA, COKTEL, KNOWLEDGE - - STRONG COMMITMENT OF HAVAS ADVENTURE, SIERRA...) ONLINE OFFLINE PROPERTIES - TO DEVELOP A BUSINESS BASED ON A LARGE - - MARKETING LEVERAGE THROUGH ADI REVENUE MIX (SUBSCRIPTION, ADVERTISING 5 (LAUNCHED IN OCTOBER 2000) E-COMMERCE) - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] EDUCATION.COM - ROADMAP [ARROW GRAPHIC] SEPTEMBER JANUARY 2001 2002 ---------------> 2000 2001 - - BETA LAUNCH - PUBLIC - LAUNCH IN - BREAKEVEN IN FRANCE, LAUNCH SPAIN GERMANY, IN FRANCE, UNITED- GERMANY, KINGDOM, UNITED- LIVE VERSION KINGDOM IN THE US [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] CANALNUMEDIA
==================================== ======================================== AUDIENCE VISION & STRATEGY (WWW.CANALPLUS.FR) ==================================== ======================================== - - TO BECOME THE NO 1 EUROPEAN PAGE VIEWS (M) (SOURCE: CYBERMETRIE) INTERNET CONTENT SUPPLIER IN [BAR CHART] MOVIES, SPORT - - TO AGGREGATE AND DEVELOP CANAL PLUS WEB SITES IN EUROPE FEB 00 1,5 MAY 00 1,8 - - TO BRING CANAL PLUS EXPERIENCE JUNE 00 2,1 TO THE INTERNET ENVIRONMENT AUG 00 1,3 - - TO CAPITALIZE ON CANAL PLUS' 14 --------------------------------------- MILLION SUBSCRIBERS ======================================= DEVELOPMENT ======================================= - NEW WEB SITE LAY-OUT LAUNCHED IN NOVEMBER - WEB SITE WILL BE ORGANIZED AROUND THREE MAIN THEMATICS: CINEMA, SPORT, Y-GENERATION - INTERNATIONAL DEVELOPMENT IN ALL COUNTRIES WHERE CANAL PLUS IS PRESENT (EXCEPT FOR SPAIN) - ------------------------------------ ----------------------------------------
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] BONJOUR
==================================== ======================================== KEY ACHIEVEMENTS TRAFFIC (BONJOUR.FR) ==================================== ======================================== PAGE VIEWS (M) (SOURCE: REAL MEDIA/ - - NO 1 CLASSIFIED ADS IN FRANCE CYBERMETRIE) WITH 250K CLASSIFIED ADS ON LINE [BAR CHART] - - SUSTAINABLE TRAFFIC GROWTH WITH ABOUT 7M PAGE VIEWS (AND 120K MEMBERS) JAN 00 4,3 MARCH 00 5,6 - - SUCCESSFUL LAUNCH OF ONLINE JULY 00 6,8 AUCTIONS TARGETING 4TH RANK BY SEPT 00 8,2 YEAR END (> 30K GOODS IN AUCTIONS) - - TRAINING OF THE COMAREG SALES ---------------------------------------- FORCE NOW ABLE TO CROSS-SELL ONLINE PROPERTIES TO ======================================== PROFESSIONALS VISION AND MISSION ======================================== - - BONJOUR READY TO CASH IN ON TRAFFIC BY IMPLEMENTING PAYING - INCREASE MONETIZATION OF TRAFFIC TO MODEL FOR CLASSIFIED ADS AND REACH BREAKEVEN IN 2002 AUCTIONS - LAUNCH OF PAYING WEB-TO-WEB AND PAPER-TO-WEB CLASSIFIED ADS - NEW VERTICALS FOCUSING ON CARS, REAL ESTATE, COLLECTORS, COMIC STRIPS... - CLOSE LINKS WITH SCOOT FRANCE - ------------------------------------ ----------------------------------------
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] BONJOUR - ROADMAP [ARROW GRAPHIC] JANUARY JULY SEPTEMBER Q4 --------------------> 2000 2000 2000 2000 - - 150K ITEMS - 290 ITEMS - 300 ITEMS - PAYING PAPER - - 4.3M PAGES - 6.8M PAGE - 8.2 M PAGE VIEWS + WEB ADS VIEWS VIEWS - PAYING WEB TO - LAUNCH OF - LAUNCH WEB ADS VERTICAL REAL ALERT/PROFILING - PAYING AUCTIONS ESTATE PORTAL SERVICE - LAUNCH VERTICAL - LAUNCH PORTALS (BONJOUR AUCTIONS L'AUTO, COLLECTORS - NEW WEB SITE AND COMICS) DESIGN [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] CADRES ONLINE
==================================== ======================================== KEY ACHIEVEMENTS AUDIENCE (WWW.CADRESONLINE.COM) ==================================== ======================================== PAGE VIEWS (M) (SOURCE: CYBERMETRIE) - - LEADING JOB BOARD IN FRANCE [BAR CHART] - - IMPLEMENTATION OF A DIRECT WEB STRATEGY DEC 99 4,6 - - MARKETING AND COMMERCIAL MARCH 00 6,3 LEVERAGE THROUGH HAVAS JUIL-00 6,3 PUBLICATIONS ---------------------------------------- - - MULTI-CRITERIA SEARCH ENGINE ======================================== - - SIX THEMATIC CHANNELS VISION AND STRATEGY ======================================== - - INTEGRATION INTO A EUROPEAN NETWORK: TALENT FOR EUROPE - TO OFFER VALUE-ADDED SERVICES FOR COMPANIES, JOB SEEKERS AND NEWSPAPERS - TO LEVERAGE HAVAS' STRONG PRESS ASSETS - TO REACH BREAKEVEN BY 2001 - ------------------------------------ ----------------------------------------
[VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] CADRES ONLINE - ROADMAP [ARROW GRAPHIC] 1996 OCTOBER SEPTEMBER 2001 ------------------> 1999 2000 - - LAUNCH OF - ADDITION OF - RELEASE OF - BREAKEVEN THE FIRST NEW VALUE- A NEW VERSION ADDED TOOLS VERSION IN FRANCE [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] ATMEDICA ====================================== KEY ACHIEVEMENTS ====================================== - - IDENTIFICATION OF THREE KEY BUSINESS LINES IN WHICH HAVAS MEDI MEDIA AND ATMEDICA HAVE A STRONG COMPETITIVE ===================================== ADVANTAGE: VISION AND STRATEGY ===================================== - E-LEARNING (CME, CONFERENCE REPORTING, CURRICULUM RELATED - FOCUS ON B2B MODELS, WITH A LEARNING...); GLOBAL GEOGRAPHIC SCOPE - COMPLIANCE MANAGEMENT - TO BECOME THE FIRST GLOBAL ONLINE (PATIENT COMPLIANCE PROGRAMS PRODUCER AND DISTRIBUTOR OF HIGH- MADE AVAILABLE THROUGH MEDICAL QUALITY ONLINE LEARNING AND PROFESSIONALS...); DECISION-SUPPORT SERVICES FOR MEDICAL PROFESSIONALS - CLINICAL SUPPORT SERVICES (DIAGNOSTIC SUPPORT TOOLS, - SAME DISTRIBUTION CHANNEL FOR ALL CUSTOMIZED FORMS AVAILABLE ON BUSINESS LINES DESKTOPS). - LEVERAGE EXISTING OFFLINE BRANDS - - HAVAS MEDI MEDIA AND ATMEDICA AND CONTENT TO CROSS-SELL LOCAL MANAGEMENT TEAMS WORKING ON SERVICES ONLINE. LOCAL BUSINESS PLANNING. ====================================== ==================================== [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] ATMEDICA - ROADMAP [ARROW GRAPHIC] JUNE SEPTEMBER DECEMBER 2001 -------------> 2000 2000 2000 - - STRATEGIC - LAUNCH OF - RECRUITMENT OF - FULL SCALE REVIEW OF BUSINESS SENIOR IMPLEMENTATION MEDICAL PLANNING MANAGEMENT OF BUSINESS PLAN ENVIRONMENT PHASE ONLINE AND IDENTIFICATION OF ATMEDICA AND HAVAS MEDI MEDIA CORE STRENGTHS [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] 01.NET ==================================== ======================================== AUDIENCE KEY ACHIEVEMENTS (WWW.01NET.COM) ==================================== ======================================== PAGE VIEWS (M) (SOURCE: DART) - - LEADING INFORMATION TECHNOLOGY [BAR CHART] WEB SITE IN FRANCE
- - VERSION 2 OF SITE LAUNCHED IN MAY 2000 AND STRUCTURED IN MAY 00 2,6 VERTICAL CONTENT AREAS JUNE 00 2,8 JULY 00 3 - - ADVERTISING REVENUE RAMPING UP AUG 00 3,1 MUCH FASTER THAN EXPECTED ON
VERY HIGH CPM AND 100% SOLD ---------------------------------------- BANNER INVENTORY ======================================== - - HEAD COUNT: 66 PEOPLE BY Q4 VISION AND STRATEGY 2000 ======================================== - TO INCREASE ITS POSITION AS THE LEADING INFORMATION TECHNOLOGY PORTAL IN FRANCE. - BUSINESS MODEL BASED ON ADVERTISING REVENUES AND SALE OF PREMIUM CONTENT. - INTERNATIONAL DEVELOPMENT THROUGH PARTNERSHIP - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] 01.NET - ROADMAP [ARROW GRAPHIC] AUGUST SEPTEMBER 2001 2002 --------------> 2000 2000 - - LAUNCH OF V2 - RELAUNCH OF - FOCUS ON SITE - BREAKEVEN SITE WITH VISIBILITY AND NEW DESIGN REVENUE AROUND GROWTH VERTICAL THEMATIC CHANNELS - CREATION OF NEW ECONOMY SECTION [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] SQUARE FINANCE ==================================== ======================================== AUDIENCE KEY ACHIEVEMENTS (WWW.SQUAREFINANCE.COM) ==================================== ======================================== PAGE VIEWS (M) (SOURCE DOUBLE CLICK - - - PARTNERSHIP WITH VIZZAVI SIGNED JAN 00 / CYBERMETRIE) : SQUARE FINANCE TO BECOME [BAR CHART] PREFERRED SUPPLIER FOR VIZZAVI FRANCE FINANCE CHANNEL
- - P.R. CAMPAIGN LAUNCHED IN JAN 00 0,5 SEPTEMBER, LARGELY THROUGH JUNE 00 1,5 CROSS-PROMOTION BY HAVAS AUG 00 1,8 PUBLICATIONS
---------------------------------------- - - NUMEROUS CONTENT LICENSING DEALS SIGNED WITH ONLINE ======================================== BROKERS, BANKS AND FINANCIAL VISION AND STRATEGY SITES. ======================================== - - CONTENT SYNDICATION REVENUES - TO BECOME ONE OF FRANCE'S LEADING RAMPING UP FASTER THAN PERSONAL FINANCE PORTAL AND PROVIDER EXPECTED. OF ONLINE FINANCIAL CONTENT - TO LEVERAGE HAVAS' STRONG OFFLINE CONTENT AND BRANDS (L'EXPANSION, LA VIE FINANCIERE...) ONLINE - TO DEVELOP A BUSINESS BASED ON A LARGE REVENUE MIX (ADVERTISING, E- COMMERCE, CONTENT LICENSING...) - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] [ARROW GRAPHIC] SQUARE FINANCE - ROADMAP AUGUST SEPTEMBER 2001 2002 ------------------> 2000 2000 - - LAUNCH OF - LAUNCH OF - FOCUS ON - BREAKEVEN V2 UNDER MARKETING SITE SQUARE CAMPAIGN VISIBILITY FINANCE AND BRAND REVENUE - BEGINNING GROWTH OF CONTENT PARTNERSHI P WITH VIZZAVI [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] @VISO - EVOKE EUROPE ==================================== ======================================== VISION AND MISSION KEY ACHIEVEMENTS ==================================== ======================================== - - EVOKE IS A LEADING INTERNET - STARTING DATES : TERM SHEET COMMUNICATIONS PROVIDER FOR SIGNED 10/99. GERMAN AND BUSINESSES FRENCH SITE OPENED IN MARCH 2000 - OFFERS AUDIO/VIDEO CONFERENCING WITHOUT ANY - STAFF : ABOUT 110 PRE-BOOKING REQUIREMENT. EMPLOYEES - ALSO OFFERS LIVE AND ON- - OPERATING IN 5 COUNTRIES : DEMAND WEBCASTING AND GERMANY, FRANCE, SPAIN, UNIVERSAL VOICE-TO-MAIL ITALY AND SWEDEN - FUNDING EURO9.8M - 51/49 - PARTNERSHIP WITH TERRA, EVOKE/@VISO JV VIZZAVI - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] @VISO - INTERLIANT EUROPE ==================================== ======================================== VISION AND MISSION KEY ACHIEVEMENTS ==================================== ======================================== - - INTERLIANT IS A LEADING - STARTING DATES : TERM SHEET ASP/WEB HOSTING COMPANY SIGNED 10/99. FRENCH SERVICES STARTED IN APRIL - COMPREHENSIVE SUITE OF 2000 HIGH-END HOSTING AND INTERNET SERVICES - STAFF : ABOUT 60 EMPLOYEES CONSULTING SPECIALISED IN APPLICATION SERVICE - OPERATING IN 3 COUNTRIES : PROVISION (ASP) FRANCE, UK AND GERMANY - FOCUS ON MISSION-CRITICAL - PARTNERSHIP WITH CEGETEL APPLICATIONS - FUNDING EURO7.6M - 51/49 INTERLIANT/ @VISO - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] @VISO - MESSAGE MEDIA EUROPE ==================================== ======================================== VISION AND MISSION KEY ACHIEVEMENTS ==================================== ======================================== - - MESSAGE MEDIA IS A LEADING - STARTING DATES : TERM SHEET PROVIDER OF E-MAIL-BASED SIGNED 10/99. FRENCH CUSTOMER RELATIONSHIP SERVICES STARTED ON APRIL MANAGEMENT AND DIRECT 2000 MARKETING - STAFF : ABOUT 72 EMPLOYEES - COMPREHENSIVE SUITE OF MESSAGING SERVICES BASED - OPERATING IN 3 COUNTRIES : ON E-MAIL COVERING CRM, GERMANY, FRANCE, AND OPT-IN-BASED DIRECT SWEDEN MARKETING AND REAL-TIME CUSTOMER FEED-BACK - MAIN CUSTOMERS : BONJOUR, SOLUTIONS SCANDINAVIA ON LINE, GETTY - FUNDING : EURO7.8M FOR A - WILL LEAVE THE PARIS 51/49 MM/ @VISO JV INCUBATION CENTER IN NOVEMBER 2000. - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] @VISO - PEOPLE PC EUROPE ==================================== ======================================== VISION AND MISSION KEY ACHIEVEMENTS ==================================== ======================================== - - PEOPLE PC'S GOAL IS TO - STARTING DATES : TERM SHEET CONNECT THOSE NOT YET ONLINE SIGNED ON 05/00. UK AND FRENCH SERVICES TO START IN - OFFERS A BRAND-NAME PC, 11/00 UNLIMITED INTERNET ACCESS, 3 YEARS' HOME - STAFF : ABOUT 25 TO DATE (45 WARRANTY AND CUSTOMER BY YEAR END) SERVICES FOR A LOW MONTHLY FEE. - OPERATING IN 2 COUNTRIES : UK, FRANCE - GLOBAL INTERNET PROVIDER TO CONSUMER, CORPORATE - PARTNERSHIP WITH HP, IBM, AND GOVERNMENT MICROSOFT EMPLOYEES. - NEXT STEP : ROLL-OUT OF THE - EURO60M FUNDING OF THE FIRST 2 CORPORATE EUROPEAN JV, @VISO OWNS CUSTOMERS ON A EUROPEAN 35% SCALE - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] @VISO - E LOAN EUROPE ==================================== ======================================== VISION AND MISSION KEY ACHIEVEMENTS ==================================== ======================================== - - E-LOAN IS THE LEADING ONLINE - STARTING DATES : TERM SHEET LENDING COMPANY << A BETTER SIGNED 10/99. GERMAN AND WAY TO GET A LOAN >> FRENCH SITE OPENED IN MARCH 2000 - E-LOAN OFFERS HOME EQUITY LOANS, CAR LOANS - STAFF : ABOUT 110 AND CONSUMER LOANS EMPLOYEES - E LOAN OFFERS THE LARGEST - OPERATING IN 5 COUNTRIES : SELECTION OF LOANS WITH GERMANY, FRANCE, SPAIN, STATE-OF-THE-ART DECISION- ITALY AND SWEDEN MAKING TOOLS AND THE SUPPORT OF PERSONAL - PARTNERSHIP WITH TERRA, CONSULTANTS ONLINE OR BY VIZZAVI PHONE. STRONG CONSUMER ADVOCATE. - FUNDING EURO35M - 50/50 JV - ------------------------------------ ---------------------------------------- [VIVENDI UNIVERSAL LOGO] [VIVENDINET LOGO] USA INTERACTIVE - PROPERTIES - - TICKETMASTER (100% OWNERSHIP) : US LEADER IN OFF-LINE TICKETING - PACERCATS (100%) : BOX OFFICE SYSTEMS FOR MOVIE THEATRES - - TICKETMASTER ONLINE (CITYSEARCH (50%): SECOND E- COMMERCE SITE AFTER AMAZON ; US LEADER IN CITY GUIDES ; LISTED COMPANY (MARKET CAP : $ 1.3B) - - HOTEL RESERVATION NETWORK (70%): US LEADER IN ONLINE HOTEL RESERVATION ; PROFITABLE ; LISTED COMPANY (MARKET CAP : $1.5B) - - ELECTRONIC COMMERCE AND SERVICES : PROVIDER OF INTEGRATED RETAIL SOLUTIONS THAT LEVERAGE TM, HSN, AND OTHER USA COMPANIES - - OTHER WEB PROPERTIES : MATCH.COM, STYLECLICK, ... [VIVENDI UNIVERSAL LOGO] # # # DOUG MORRIS Chairman and Chief Executive Officer Universal Music Group [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 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] RECENT RESULTS Fiscal Year Ending June 30,2000
(US $ Millions) Revenue: North America $2,512 Europe 2,416 Rest of the World 1,032 Publishing 276 ------ 6,236 EBITDA 1,018 Margin 16%
[VIVENDI UNIVERSAL LOGO] CASH FLOW (Fiscal Year 2000)
($MM) ----- EBITDA 1018 Gross Artist Investment (640) Recoupments 680 40 ---- Capital Expenditures & Working Capital 317 ---- Cash Flow From Operation* 741
* Before e-business Investment and Acquisition Costs [VIVENDI UNIVERSAL LOGO] UMG PORTRAIT Global Market Share (CY 1999) Universal 21.8% Sony 17.3% EMI 13.5% Warner 11.7% BMG 11.7% All Other 24.0%
Source: IFPI, MBI, Internal Market Research, Local Industry Association Chapter [VIVENDI UNIVERSAL LOGO] SNAPSHOT OF MAJOR MARKETS
(CY 1999) % of World Market Share Market % US 37.0 26.4 Canada 2.3 23.1 ----- ---- North America 39.3 26.2 ----- ---- Japan 16.7 10.1 UK 7.6 24.3 Germany 7.4 22.6 France 5.2 33.1 Brazil 1.7 25.9 ----- ---- 38.6 19.1 ----- ---- 56 Other Countries 22.1 18.7 ----- ---- Total 100.0 21.8 ===== ====
[VIVENDI UNIVERSAL LOGO] UMG PORTRAIT - - Active in 63 countries - - 12,000 employees - - Music Publishing - - Record Clubs (Britannia, Dial) - - 800 Million annual CD manufacturing capacity - - e-business investments include; Jimmy & Doug's FarmClub, GetMusic, bluematter (direct download), Subscription [VIVENDI UNIVERSAL LOGO] CATALOG - - Strong catalogs deliver 40-50% margins - - Current hits = Tomorrow's catalog [VIVENDI UNIVERSAL LOGO] U.S. MARKET SHARE (Year-to-Date) Universal 28.77% BMG 19.73% Sony 16.06% Warner 14.57% EMI 7.65%
Source: SoundScan [VIVENDI UNIVERSAL LOGO] NEW RELEASES Erykah Badu Marilyn Manson Blink 182 Method Man Ja Rule Redman Jay-Z Andre Rieu Elton John The Wallflowers K-Ci & JoJo 98(degrees) Limp Bizkit U2
[VIVENDI UNIVERSAL LOGO] # # # BRUCE HACK Vice Chairman Universal Music Group [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] AGENDA - Digital music opportunity - UMG digital strategy - Merger synergies [VIVENDI UNIVERSAL LOGO] GLOBAL INTERNET PENETRATION USERS IN MILLIONS
1999 2005 Digital TV 15 100 WAP & 3G Mobile 0 300 Internet PC 140 300 Console Games 0 45
Source: Broker Research [VIVENDI UNIVERSAL LOGO] DIGITAL OPPORTUNITIES
SALES/ PRODUCT MARKETING DISTRIBUTION ------- --------- ------------- CD Radio Retail Stores Physical TV Online Print e-Singles Viral Digital TV Digital Subscription Grassroots PC Streaming Portal Wireless Locked Marketing Content
[VIVENDI UNIVERSAL LOGO] DIGITAL MUSIC OPPORTUNITIES [Graphic showing three circles: In inner circle: Artists, Music; in second circle: Products, Services, Portals, channels; in outer circle: Wireless, PCs, PDAs, Kiosks, TVs] [VIVENDI UNIVERSAL LOGO] DIGITAL MUSIC THREATS PIRACY MARGIN PRESSURE [VIVENDI UNIVERSAL LOGO] STRATEGY TO CAPTURE DIGITAL OPPORTUNITY THREE APPROACHES #1 Government and Copyright Law Legal Framework Litigation #2 Technology Standards SDMI Business Partners #3 Commercial Activities New Businesses [VIVENDI UNIVERSAL LOGO] LEGAL EFFORTS TO PROTECT COPYRIGHTS
CASE US LEGAL ACTION RESULTS MP3.com Major record companies Summary judgment in labels' sued MP3.com favor. Four labels settle and license in content. UMG litigates through damages phase and is awarded $25,000 per infringed CD.
[VIVENDI UNIVERSAL LOGO] LEGAL EFFORTS TO PROTECT COPYRIGHTS
CASE US LEGAL ACTION RESULTS Napster Major record companies Injunction granted against sued Napster service. 9th Circuit stayed injunction pending review. Europe Hit Box sued AOL AOL found liable for users AOL swapping pirated music on its Germany service.
[VIVENDI UNIVERSAL LOGO] CONTENT PROTECTION MUSIC INDUSTRY ROADMAP [Graphic showing progression of content vehicles and market phases from current CDs with no content production through "watermarked" CDs in 2001 allowing controlled copying to CD-2 and DVD-Audio formats in 2002 involving full copy protection] CD content protection roadmap Sep00 [VIVENDI UNIVERSAL LOGO] WATERMARK TECHNOLOGY HOW IT WORKS CD with Watermark [Graphic] [Graphic] [GRAPHIC]--->Compress to MP3--->SDMI-compliant player---> content (screen for watermark)---> rejected [Graphic] [Graphic] [GRAPHIC]--->Compress to MP3--->SDMI-compliant player---> bind content (detect legacy content) to PC CD without watermark (legacy CD) CD content protection roadmap Sep00 [VIVENDI UNIVERSAL LOGO] NEW BUSINESS OPPORTUNITIES PRODUCTS SERVICES AGGREGATION CDs Subscription Portals DVD Lockers Channels CD2 Jukeboxes Locked Content Downloads Streams Music Programs [VIVENDI UNIVERSAL LOGO] US ONLINE MUSIC FORECAST (BILLIONS) [LINE GRAPH] - ---------- $6 $4 $2 0 1999 2000 2001 2002 2003 2004 2005
2000 2002 2004 ---- ---- ---- Forrester Research $1.4 $3.2 $4.3 Jupiter Communications $0.8 $2.3 $4.2
[VIVENDI UNIVERSAL LOGO] BLUEMATTER - DOWNLOADS CONSUMER ADVANTAGES - Legal - Multimedia - High Quality Music - Links - Easy to Find - Quality, Security, Privacy - Customer Care - Multi-access [VIVENDI UNIVERSAL LOGO] BLUEMATTER [ARROW GRAPHIC] CONSUMER Download PC Locked Mobile [BLUEMATTER [ARROW GRAPHICS] Content Phone GRAPHIC] Subscription [ARROW GRAPHICS] Set Top Portals Kiosks [VIVENDI UNIVERSAL LOGO] LOCKED CONTENT ON CD [GRAPHICS: Aimee Mann Jerry Lee Lewis Aquarius Atlantic Starr Gladys Knight and the Pipps Cosmic Funk Kenny Rogers Jimmy Cliff Quincy Jones] [VIVENDI UNIVERSAL LOGO] THE MOTOWN STORE Music and Associated Content [CD GRAPHIC] [GRAPHIC] Locked on a CD [VIVENDI UNIVERSAL LOGO] BLUEMATTER - LOCKED CONTENT Consumer Advantages - All of the benefits of downloads - Plus greater: - Convenience - Speed [VIVENDI UNIVERSAL LOGO] BROADBAND [GRAPHICS SHOWING PC, TV AND SISQO IMAGE] [VIVENDI UNIVERSAL LOGO] [GRAPHICS SHOWING COMPUTER SCREENS] [VIVENDI UNIVERSAL LOGO] [GRAPHICS SHOWING COMPUTER SCREENS] [VIVENDI UNIVERSAL LOGO] [GRAPHICS SHOWING COMPUTER SCREEN] [FARMCLUB.COM LOG] [VIVENDI UNIVERSAL LOGO] FARMCLUB.COM #1 Record Label #2 TV Program #3 Web Community [VIVENDI UNIVERSAL LOGO] [PHOT0] [VIVENDI UNIVERSAL LOGO] [GRAPHIC] [GRAPHIC] Limp Bizkit 98(DEGREES) [GRAPHIC] [GRAPHIC] Eminem Dr. Dre [VIVENDI UNIVERSAL LOGO] US DIGITAL MUSIC MARKET Jupiter Projection - 2005 [PIE CHART] a la carte Subscription Downloads (65%) (35%) [VIVENDI UNIVERSAL LOGO] STREAMING BASED SUBSCRIPTIONS Consumer Advantages - Most of the benefits of downloads - Plus greater: - Convenience - Variety - Speed - Simplicity [VIVENDI UNIVERSAL LOGO] [SONY LOGO] [UNIVERSAL LOGO] [VIVENDI UNIVERSAL LOGO] MARGIN EROSION "MARGINS WILL REMAIN HEALTHY" Lower Costs Pricing Direct to Consumers Value Added Offerings [VIVENDI UNIVERSAL LOGO] DIGITAL MUSIC OPPORTUNITIES [Graphic showing three circles: In inner circle, artists, music; in second circle: products, services, portals, channels; in outer circle: wireless, PCs, PDAs, TVs, Kiosks] [VIVENDI UNIVERSAL LOGO] MERGER BENEFITS FOR UMG - New business development - Greater speed - Lower cost - Higher effectiveness [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] VIZZAVI LAUNCH ASSETS - UMG: - ARTISTS - E-BUSINESSES - E-COMMERCE - MUSIC SITES - VIZZAVI - MUSIC CHANNEL SYNERGIES - UMG - DOWNLOADS - SUBSCRIPTIONS - E-COMMERCE - PROMOTIONS - VIZZAVI - RAMP-UP - CUSTOMER COSTS - CONTENT COSTS [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - I - - Downloads and subscriptions to Vizzavi on PC - - Downloads transported via memory card to SFR mobile phones - - Downloads and subscriptions delivered wirelessly to Vizzavi and SFR mobile phones - - Extension to Canal+ - - Completion of multi-access and peer-to-peer system [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] VIZZAVI LAUNCH FINANCIAL BENEFITS SUBSCRIPTIONS - FOR EACH 500K CUSTOMERS > EUROS 15/MONTH > EUROS 23M EBITDA AT UMG CDS - RULE OF THUMB 100K PURCHASES > EUROS 10/CD > EUROS 1M EBITDA AT UMG VIZZAVI - RAMP UP 3 MONTHS FASTER > EUROS 17M REVENUE IN 2001 AT VIZZAVI [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - II Locked content - In SFR subscription kits - On Vizzavi CD's - On Canal set top boxes - By direct mailings [VIVENDI UNIVERSAL LOGO] LOCKED CONTENT [ARROW GRAPHIC] SFR, VIZZAVI, CANAL+ FINANCIAL BENEFITS CDS AND DVDS - FOR EACH 50M UNITS > 4% RESPONSE > EUROS 10M EBITDA AT UMG BASED ON OFFERING > INCREMENTAL EBITDA AT SFR, VIZZAVI, CANAL+ [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] SFR Offering ASSETS - UMG - UNIVERSAL BRAND - MUSICAL CONTENT - SFR - WIRELESS NETWORK - DISTRIBUTION SYNERGIES - UMG - DOWNLOADS - SUBSCRIPTIONS - PROMOTIONS - SFR - CUSTOMERS - ARPU - CUSTOMER COSTS [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] SFR OFFERING FINANCIAL BENEFITS SFR SUBSCRIBERS - FOR EACH 150K SUBSCRIBERS > EUROS 175/YR > EUROS 25M EBITDA AT SFR UMG FRANCE MARKET SHARE 1 SHARE POINT= EUROS 5M EBITDA FOR UMG [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - III Portals - Roll-out in UK, France and Germany on Vizzavi - "Tailoring" and roll-out in other European markets [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - IV - Vizzavi ISP on Universal Music CD's - GetMusic & FarmClub: Vizzavi music service - UMG content in Vivendi products [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - V - Internet Investment Program - Global Brand Management - Multi-content Kiosks - Music and: Education Flipside Sports [VIVENDI UNIVERSAL LOGO] LARRY KENSWIL President, eLabs Universal Music Group [VIVENDI UNIVERSAL LOGO] JIMMY IOVINE Co-Chairman, Interscope Geffen A&M Chairman & CEO, Farmclub.com [VIVENDI UNIVERSAL LOGO] [VIVENDI UNIVERSAL LOGO] [VIVENDI UNIVERSAL LOGO] # # # -----END PRIVACY-ENHANCED MESSAGE-----