-----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, RFkG+C/VvgohqjGKnHysy4RKsAM7raNArlb/rHumWe5Nga92HI9R4s4qHIynqpFQ Wr40mbksgz5UfqrTrg8Tlg== /in/edgar/work/0000898822-00-000894/0000898822-00-000894.txt : 20001116 0000898822-00-000894.hdr.sgml : 20001116 ACCESSION NUMBER: 0000898822-00-000894 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001115 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: 770860 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 November 15, 2000 [VIVENDI UNIVERSAL LOGO] Jean Marie Messier ---------------------------------------------------- Goldman Sachs Conference November 14, 2000 London ---------------------------------------------------- [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL Jean Marie Messier Chairman and Chief Executive Officer Table of Contents - Mission statement - The Global Media Industry - Vivendi Universal, a growth story - Focus on three divisions: - Music - Films - Vizzavi - Synergies: examples and financial impact - A unique opportunity [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 because it contains important information. The joint proxy statement/prospectus was 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 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] VIVENDI UNIVERSAL Mission statement [VIVENDI UNIVERSAL LOGO] MISSION STATEMENT Vivendi Universal is a consumer-focused, performance-driven, values-based global media and communications company. Our Vision is to be the world's preferred creator and provider of personalised information, entertainment and services to consumers anywhere, at anytime, and across all distribution platforms and devices. [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL The Global Media Industry A vision [VIVENDI UNIVERSAL LOGO] THE GLOBAL MEDIA INDUSTRY THE ERA OF DIGITAL CONVERGENCE - - The convergence is consumer-driven. - Rich and personalized content - personalization must be easy - Multi-accessibility - localized services - - 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 - - Content producers at an advantage - Built-in customisation at early development stages - Knowledge of customer [VIVENDI UNIVERSAL LOGO] THE GLOBAL MEDIA INDUSTRY 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 [VIVENDI UNIVERSAL LOGO] THE GLOBAL MEDIA INDUSTRY NOW IS THE TIME - - Technology is locking up the market: - Limited number of Mobile and i-TV operators - Investment beyond the start-up financing power - New markets are being constantly created (e.g. new devices) - - Market shares crystallise rapidly: time to market is essential to implement new business models - - Control of margins along the value-production chain between content producers, aggregators, in-house and external distributors - - No time wasted in profit-sharing and co-branding discussions: one P&L, one Global Brand [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL A growth story [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL A GROWTH STORY - - Vivendi Universal will have all the key drivers for value creation in the global media world
| Key | New Scale & Global Brands Bundling Vertical driver | revenue Scope footprint integration | streams - ----------------------------------------------------------------------------------------------------- | Seagram | X-XX XX-X X XX 0 0 | Vivendi | X-XX XX-X X X XX XX | Canal+ | XX XX-X 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] VIVENDI UNIVERSAL A GROWTH STORY - - Vivendi Universal on same footing as main competitors: - in a position to negotiate with third parties of equivalent size: - to share distribution channels; - to secure access to additional content; - - Unique leading prominent position in Europe - gateway for US-centric partner: - Europe is not developing into a PC-centric world; - Mobile telephony and interactive TV are key to European landscape; [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL A GROWTH STORY - - 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] VIVENDI UNIVERSAL A GROWTH STORY
Figures in billion euros Revenues 2000e EBITDA 2000e Revenues CAGR EBITDA CAGR Objective Objective 2000-2002e 2000-2002e ---------------- ---------------- --------------- ---------------- Publishing 3.5 0.5 6% >=10% Music 6.6 1.1 6% 12% Telecom 5.8 1.3 18% >=35% Internet 0.03 (0.1) nm nm Pay-TV 4.0 0.4 10% >35% Filmed Ent. Recreation 4.6 0.3 7% >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 Entertainment(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] VIVENDI UNIVERSAL A GROWTH STORY
Revenues CAGR EBITDA CAGR Figures Revenues EBITDA Objective Objective in billion euros 2000e 2000e 2000-2002e 2000-2002e -------------- ------------ ---------------- ------------------ Access 9.8 1.8 >15% >35% Content 14.7 1.9 6 - 7% 12% Aggregation 0.03 (0.1) >100% nm Holding 0.0 (0.3) nm nm Synergies +1,000M[Euro](1) +660M[Euro](1) -------------- ------------ ---------------- ------------------ Total VU excl. VE 24.6 3.2 10% 35% and non-core
Assuming constant perimeter and constant number of shares, growth of EBITDA per share for the communication division in line: +35% p.a. EPS before goodwill to be impacted by exceptional items (inc. disposals) (1) In 2002, on a proportional basis (2) Vivendi owns 250.6m of VE shares (72%) [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAl Focus on three key divisions Music, Films and Vizzavi [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: THE MUSIC DIVISION A GLOBAL LEADER - - Global #1: 21.8% Market Share - vs. Sony (17.3%), EMI (13.5%), Warner (11.7%), BMG (11.7%) and others (aggregate 24.0%) - Sales [Euro]6.9bn (US 40%, Europe 39%) - - Domestic leadership in most major countries: - US: #1 with 29% market share - France: #1 with 33%; UK: 24%; Brazil: 26%... - - Very profitable with huge cash-flow generation: - EBITDA margin of 16% - Cash from operations(*) approx. 72% of EBITDA *: before e-business development and acquisition costs [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: THE MUSIC DIVISION WHY MUSIC IS A GOOD BUSINESS - - Attractive "risk profile" - Well-diversified portfolio/large number of bets - Long term contracts - Strengths of catalogue - - Label functions to remain essential - Discovering artists (a filter, financing artist acquisition) - Promoting and distributing (Global and local reach, Knowledge of circuits) - Indies: market share down from 30% in 1988 to 24% in 1999 [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: THE MUSIC DIVISION DIGITAL OPPORTUNITIES - - Marketing leadership being established, beyond legal and technological steps... - - Already in place: - Digital downloads - Subscription services - - Getting ready for: - Locked content - TV Set-top boxes - Wireless - Streaming: Per per play - Kiosks [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: THE FILM DIVISION UNIVERSAL STUDIOS GROUP - - A balanced portfolio of film-related businesses - Filmed entertainment: Universal Pictures - Production and distribution of films - Recreation - Theme parks in Hollywood, Orlando, Beijing, Spain, soon in Japan - Television and Networks - Production of TV programmes and distribution through international branded channels: 13th Street, SciFi, StudioUniversal... - - A recent turnaround - Sales [Euro]4.6bn in 2000, consolidated EBITDA [Euro]0.3bn [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: THE FILM DIVISION UNIVERSAL PICTURES' TURNAROUND STORY - - Business fundamentals changed radically under new management - Slate management - Slate managed within a corporate mandated production cap - Diversification of genre/style: 14-16 films a year - Process accountability - Risk protection - Franchises and sequels - Risk sharing and capping (insurances, studio joint-ventures, opportunistic right sales) - Leveraging opportunities through divisions [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: VIZZAVI PIONEERING EUROPEAN MULTI-ACCESS - - Mobile and i-TV are key to European landscape - Revenue forecasts to reflect new consumer behaviours: e.g. typical household to buy more through i-TV than PC - - Our share of the investments - [Euro] 600 to 800 million over next 2 years (*) - - Break-even target in 2003 *: depending on cash-burn and IPO timing [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: VIZZAVI KEY DIFFERENTIATORS - - First-mover advantage - - Multi-accessibility - Common default portal across range of devices - Unified messaging centre (voice- and e-mails) - - Close cooperation with access providers - Localised services - Direct and detailed billing through access companies - Integrated post-sale services and customer care - Joint marketing approach to new devices (e.g. PDAs with mobile phone access) [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL Synergies Examples and financial impact [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: SYNERGIES EXAMPLES AROUND THE MUSIC DIVISION - - Mobile phone and music - Music-based services on mobile devices (e.g. lottery service, mailbox personalization, ring tone services) - Provide new distribution channels for UMG music content - - Music and Vizzavi - Vizzavi will offer specific vertical channels such as Games, Music, Entertainment - UMG has several e-music ventures + downloading programs - Vizzavi can leverage UMG content to increase Vizzavi Music Channel popularity (Increase loyalty and lower acquisition costs for Vizzavi) offering choices not exclusivities to the consumer - - UMG CD to increase Vizzavi traffic - UMG powerful distribution (200 M CDs sold in Europe last year). Using CDs, the consumer will access Vizzavi portal customized with special artist features (e.g. latest news on the artists, exclusive tracks included) [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: SYNERGIES EXAMPLES AROUND THE FILM DIVISION - - Studio Production synergies - Pursue co-production opportunities - Combine international acquisition efforts - Mine libraries for product remakes including film, direct-to-video, and TV animation - Leverage Universal production assets - - Distribution synergies - Utilize common theatrical, video and TV distribution - Assuming distribution of Studio Canal product on video - Establish direct distribution operations in territories currently covered by third parties - - Long term, leverage product across array of emerging platforms capitalizing on Vivendi Universals footprint in wireless technology [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: SYNERGIES TARGET REVENUE SYNERGIES IN MILLIONS [EURO] - - 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 ---- - ------------------------------------------------- | TOTAL EBITDA 220 |----> >= 400 - ------------------------------------------------- in 2003 [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL: SYNERGIES TARGET COST SYNERGIES IN MILLIONS [EURO] 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 - ------------------------------------------------------------------ + Spirits' divestiture savings / non absorbed Seagram's costs(30) + Non recurring items at Vivendi 60 - ------------------------------------------------------------------ Total EBITDA impact 420 Non EBITDA recurring 50 Investment savings 80 Total Cash Flow impact 550 [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL A unique opportunity [VIVENDI UNIVERSAL LOGO] VIVENDI UNIVERSAL A UNIQUE OPPORTUNITY - - Markets - Growth markets: content/access/aggregation - Multi-access is key; mobility is now a consumer need. - Vertical integration to keep margins within the group and 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] [VIVENDI UNIVERSAL LOGO] -----END PRIVACY-ENHANCED MESSAGE-----