Vivendi: First Half Year 2013 Results

  Vivendi: First Half Year 2013 Results

Business Wire

PARIS -- August 29, 2013

Regulatory News:

Vivendi (Paris:VIV):

Note: This press release contains unaudited consolidated earnings established
under IFRS, which were approved by Vivendi’s Management Board on August 28,
2013.

As from the second quarter of 2013 in compliance with IFRS 5^1, Activision
Blizzard and Maroc Telecom group are classified as discontinued operations^2,
meaning that their results are excluded from the adjusted statement of
earnings. This adjustment also applies to the 2012 earnings for comparison
purposes.

  *Revenues^1: €10.842 billion for the four companies in the perimeter, down
    1.5% compared to first half 2012 (-0.2% at constant currency).

  *EBITA^1,3: €1.391 billion, down 27.0% as expected (-25.7% at constant
    currency). This change is mainly due to the decrease in SFR’s EBITA in a
    market which remains very competitive.

  *Adjusted Net Income^1,4: €845 million, down 25.0%, mainly reflecting the
    EBITA decrease.
  *Full year outlook confirmed for Universal Music Group, and slightly
    adjusted for Canal+ Group, SFR and GVT.
  *Financial net debt : €6.5 billion taking into account the expected^5 
    proceeds from disposals in progress, compared with €13.4 billion as of
    December 31, 2012.

“Vivendi’s subsidiaries are confronted with a challenging economic environment
and highly competitive markets. In this context, the Group’s media businesses
have resisted, benefiting from the first positive impacts of the acquisitions
and growth drivers they put in place. The Group’s priorities remain the
closing of the announced deals, cash flow generation, the pursuit of SFR’s
adaptation to new market conditions and the achievement of synergies’
generated by the acquisitions.

Vivendi has indeed taken key steps forward in the strategic review process
being carried out by its Supervisory Board. The Group will divest most of its
interest in Activision Blizzard and has entered into exclusive negotiations to
sell Maroc Telecom group. The proceeds of these transactions will provide
Vivendi with greater financial flexibility. SFR and Bouygues Telecom are
working on a project to share a portion of their mobile network. In addition,
Universal Music Group completed the sale of the EMI Recorded Music assets
required by the regulator and the integration of the prestigious label. Canal+
Group successfully relaunched the D8/D17 channels.

Vivendi is realizing at its own pace its announced restructuring aimed at
achieving new growth milestones. Our priority remains the creation of
shareholder value.”

                                                          Jean-François Dubos,
                  Chairman of the Management Board and Chief Executive Officer

                       Comments on Business Highlights

                                 Canal+ Group

Canal+ Group’s revenues were €2,600 million, a 5.3% increase compared to first
half 2012. This increase was primarily due to the integration of new
free-to-air TV channels in France (D8 and D17) and the “n” platform in
Poland^6. Re-launched in October 2012, D8’s audience continued to grow,
reaching a 3.4% audience share in June 2013 (+1.1 percentage point on a
year-on-year basis).

At the end of June 2013, Canal+ Group’s total subscription portfolio grew,
reaching nearly 14 million subscribers, thanks notably to good performances in
Africa and Vietnam. In mainland France, ARPU grew by €1.6 to €49.5 compared to
first half 2012.

Canal+ Group’s EBITA was €449 million, excluding €19 million in transition
costs related to the integration of new businesses. The year-on-year change
resulted from investments in content and the decline of the advertising market
in France.

In the first half, Canal+ Group entered into several content partnerships. It
signed a license agreement with HBO, the worldwide benchmark for the original
production of high quality TV series, covering all the new series for five
seasons. Canal+ Group also concluded a strategic agreement with A+E Networks
for the acquisition, production and distribution of digital content. In
sports, it won the exclusive broadcasting rights to the English Premier League
and the World Championship Formula 1.

In addition, on September 21, Canal+ Group will launch Canal+ Series, the
first premium channel devoted to series with the best in French and
international productions, including Canal+’s original productions.

Due to a less favorable than anticipated advertising market in the first half,
Canal+ Group slightly adjusted its 2013 EBITA outlook to around €650 million,
excluding transition costs.

                            Universal Music Group

Universal Music Group (UMG)’s revenues were €2,236 million, up 16.3% compared
to first half 2012 (+19.0% at constant currency). Digital sales represented
53% of recorded music sales compared to 47% in first half 2012.

Recorded music best sellers this half year were led by carryover sales from
Rihanna and Imagine Dragons, the ‘Les Misérables’ soundtrack and the acoustic
album ‘Believe’ from Justin Bieber.

UMG’s EBITA of €143 million represented a decrease of 8.3% compared to first
half 2012 (-5.5% at constant currency), including restructuring and
integration costs related to the acquisition of EMI Recorded Music, as well as
unfavorable currency movements, a tough comparison against strong recorded
music releases over the first half of 2012 and specific difficulties in the
Japanese market.

Excluding restructuring and integration costs, UMG’s EBITA was up 6.2%
compared to first half 2012.  Synergies related to the EMI Recorded Music
acquisition, which are expected to be more than £100 million, remain on track
to be delivered by the end of 2014.

On July 1, Vivendi and Universal Music Group completed the disposal of
Parlophone Label Group. This sale represented the final significant divestment
required by the European Commission in connection with the EMI Recorded Music
acquisition. The total net sale proceeds amounted to approximately €700
million in cash.

                                     GVT

GVT’s revenues increased by 14.7% at constant currency (+3.6% at actual
currency) compared to first half 2012, reaching €884 million. This performance
was achieved despite the slowdown in the Brazilian economy and the social
protests that took place in most of the country’s large cities in June. By the
end of June 2013, GVT services covered 146 cities, compared to 130 cities at
the same time last year, reaching 9.176 million Telecom lines in service, a
23.8% increase year-on-year.

GVT’s pay-TV service continues to perform well and generated revenues of
€81million during first half 2013. The number of subscribers reached about
508,000 as of June 30, 2013 (x2.5 year-on-year), representing a 22%
penetration rate among GVT’s broadband customer base.

GVT was elected by a leading local IT magazine as the best broadband service
in Brazil for the fourth consecutive year and was recognized by the regulator
as the operator with the fastest average broadband speeds per user in the
country. GVT added to its portfolio a new broadband speed of 25 Mbps at the
beginning of 2013 and a speed of 150 Mbps in March. At the end of June 2013,
49.3% of its customer base opted for speeds equal to or higher than 15 Mbps,
compared to 40.7% one year ago.

The company continued its expansion plans across Brazil in the second quarter
with seven new cities launched in the South and Southeast regions. Two of
these cities have 1.6 million inhabitants and are located in the state of Rio
de Janeiro.

In June, GVT TV launched a new app for kids in partnership with Discovery
Kids. The game “Musical Memory Discovery Kids” is available for free to all
subscribers. In addition, aiming to offer more benefits to customers of GVT’s
voice and IP service, Vono, the company launched an app for smartphones that
allows users to make calls anywhere via wifi internet.

GVT’s EBITDA reached €354 million, a 13.3% increase at constant currency
(+2.3% at actual currency) compared to first half of 2012, and its EBITDA
margin remained stable at 40.0% (42.1% for its telecom activities only).

GVT’s EBITA were €196 million, a 2.6% decrease at constant currency (-12.1% at
actual currency) compared to first half 2012, due to increased depreciation
expenses as a result of high capital expenditures during 2012, in particular
in the field of pay-TV where the amortization periods are shorter.

For the full year, GVT now expects revenue growth in the mid 10’s at constant
currency and an EBITDA margin above 40% while maintaining its EBITDA-Capex
outlook close to breakeven.

                                     SFR

SFR’s revenues amounted to €5,108 million, an 11.3% decrease compared to first
half 2012 due to the impact of price cuts in response to the competitive
environment and to price cuts imposed by the regulators^7. Excluding the
impact of these regulatory decisions, revenues decreased by 7.9%.

Mobile revenues^8 amounted to €3,204 million, down 17.4%. Excluding the impact
of regulated price cuts, mobile revenues decreased by 12.5%.

During first half 2013, SFR’s postpaid mobile customer base increased by
809,000 net additions. At the end of June, SFR’s postpaid mobile customer base
reached 17.372 million, a 5.8% increase year-on-year. On the Mass Market
Postpaid Voice customer market, in the second quarter, SFR recorded its best
sales performance in 18 months, thanks to a significant decrease in its churn
rate. The customer mix (the percentage of the number of postpaid customers in
the total customer base) amounted to 82.5%, a 3.5 percentage point increase
year-on-year. SFR’s total mobile customer base reached 21.049 million. Mobile
Internet usage continued to progress, with 55% of SFR customers equipped with
a smartphone (46% at the end of June 2012).

Broadband Internet and fixed revenues^8 amounted to €1,966 million, a 0.8%
decrease. Excluding the impact of regulated price cuts, broadband Internet and
fixed revenues increased by 0.6%.

At the end of June 2013, the postpaid broadband Internet residential customer
base reached 5.164 million, with 89,000 net additions during first half and an
acceleration of fiber recruitments. The “Multi-Pack de SFR” offer reached 2.1
million subscribers at the end of June 2013, representing 41% of the broadband
Internet customer base.

SFR’s EBITDA amounted to €1,470 million, a 20.5% decrease compared to first
half 2012. The second quarter’s EBITDA was €768 million, down 16.3% compared
to second quarter 2012. The implementation of its cost savings plan partially
offset the decrease in revenues.

SFR slightly revised its 2013 EBITDA outlook as a result of the adverse
decision of the European Court of Justice regarding the “Copé tax” on
electronic communications. EBITDA for 2013 is now expected to be around
€2.8billion while its Capex outlook remains unchanged at around €1.6 billion.

In Mobile, SFR continues to expand its 4G network coverage. The objective is a
coverage rate for 4G and Dual Carrier (LTE and DC-HSPA+) of 70% of the
population by the end of 2013, half of which in 4G.

On July 22, SFR and Bouygues Telecom announced their plan to share a portion
of their mobile networks. The ambition of the two operators is to offer their
customers the best geographical coverage and the best service quality at a
time when the explosion in new usages and data traffic offers operators
significant opportunities to recreate value.

In Fixed, since June 4, SFR has upgraded its fiber-to-the-home (FTTH) offer to
300 Mbps, compared to 100 Mbps previously. It is the best mass market offer
available on the market today.

SFR continues to implement its adaptation plan to strengthen its capacity to
invest in a very high speed fixed and mobile broadband. The voluntary
redundancy plan will be completed by August 31, 2013.

             Comments on Key Financial Consolidated Indicators^1

Revenues were €10,842million, compared to €11,008million for the first half
of 2012 (-1.5%, or -0.2% at constant currency).

EBITA was €1,391million, compared to €1,906million for the first half of
2012 (-27.0%, or -25.7% at constant currency). This change reflected primarily
the SFR’s decrease (-€407 million).

Interest was an expense of €276million, stable compared to the first half of
2012. For the first half of 2013, interest expenses on borrowings remained
stable at €285million (compared to €288million for the first half of 2012).
This change was attributable to the increase in average outstanding borrowings
to €17.3billion for the first half of 2013 (compared to €16.0billion for the
first half of 2012), primarily reflecting the impact of the financing of the
acquisition of EMI Recorded Music in September 2012 (€1.4billion), offset by
the decrease in the average interest rate on borrowings to 3.30% for the first
half of 2013 (compared to 3.60% for the first half of 2012).

Other financial charges and income amounted to a net charge of €115million,
compared to a net charge of €77million for the first half of 2012. They
mainly included a €74million foreign exchange loss on GVT’s intercompany euro
loan from Vivendi, due to the decline in value of the Brazilian Real
(€33million for the first half of 2012).

Income taxes reported to adjusted net income was a net charge of €208million,
compared to a net charge of €413million for the first half of 2012. This
change notably reflected the impact of the decline in the taxable income of
the Group’s business segments (+€178million), primarily due to SFR, partially
offset by the decrease in the current tax savings related to Vivendi SA’s tax
group System (-€50million). The effective tax rate reported to adjusted net
income was 18.2%.

Earnings from discontinued operations (before non-controlling interests)
amounted to €936million, compared to €716million for the first half of 2012.

It included Activision Blizzard’s earnings (€610million for the first half of
2013, compared to €432million for the first half of 2012), underpinned by the
success of Skylanders Giants and Call of Duty: Black Ops II (the top-two
best-selling games in North America and Europe combined^9), World of Warcraft
remaining the #1 subscription-based MMORPG, with approximately 7.7 million
subscribers.

It also included Maroc Telecom group’s earnings (€326million for the first
half of 2013, compared to €284million for the first half of 2012). African
subsidiaries’ growth and efforts to control costs (particularly the voluntary
redundancy plan carried out in 2012) contributed to the growth in Maroc
Telecom group’s earnings.

Adjusted net income attributable to non-controlling interests amounted to
€80million, compared to €81million for the first half of 2012, and primarily
included Canal+ Group’s non-controlling interests.

Adjusted net income was €845million (or €0.64 per share) compared to
€1,127million (or €0.88pershare) for the first half of 2012, a €282million
decrease (-25.0%).

Earnings attributable to Vivendi SA shareowners were €1,035million (or €0.78
per share), compared to €1,165million (or €0.91per share) for the first half
of 2012, a €130million decrease (-11.2%).

Reconciliation of earnings attributable to Vivendi SA shareowners with
adjusted net income^4 for the first half of 2013 primarily included earnings
from discontinued operations (€514 million after non-controlling interests
compared to €396 million after non-controlling interest for the first half
2012), partially offset by other financial charges and income (-€115 million
compared to -€77 million for the first half of 2012), as well as the
amortization and impairment losses on intangible assets acquired through
business combinations (-€163 million after taxes compared to -€228 million
after taxes for the first half 2012).

After taking into account the expected sales of Maroc Telecom group, of over
85% of Activision Blizzard and of Parlophone, Financial net debt will be €6.5
billion^5, compared to a net debt, in IFRS, of €17.4 billion as of June 30,
2013 and a net debt of €13.4 billion as of December 31, 2012.

For additional information, please refer to the “Financial Report and
Unaudited Condensed Financial Statements for the half year ended June 30,
2013”, which will be released later online on Vivendi’s website
(www.vivendi.com).

Important Disclaimers

Cautionary Note Regarding Forward Looking Statements. This press release
contains forward-looking statements with respect to the financial condition,
results of operations, business, strategy, plans and outlook of Vivendi,
including the impact of certain transactions. Although Vivendi believes that
such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a number of
risks and uncertainties, many of which are outside our control, including but
not limited to the risks related to antitrust and other regulatory approvals
as well as any other approvals which may be required in connection with
certain transactions and the risks described in the documents Vivendi filed
with the Autorité des Marchés Financiers (French securities regulator), which
are also available in English on Vivendi's website (www.vivendi.com).
Investors and security holders may obtain a free copy of documents filed by
Vivendi with the Autorité des Marchés Financiers at www.amf-france.org, or
directly from Vivendi. Accordingly, we caution you against relying on forward
looking statements. These forward-looking statements are made as of the date
of this press release and Vivendi disclaims any intention or obligation to
provide, update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.

Unsponsored ADRs. Vivendi does not sponsor an American Depositary Receipt
(ADR) facility in respect of its shares. Any ADR facility currently in
existence is “unsponsored” and has no ties whatsoever to Vivendi. Vivendi
disclaims any liability in respect of any such facility.

ANALYST CONFERENCE CALL (in English, with French translation)

Speakers:
Jean-François Dubos, Chairman of the Management Board and Chief Executive
Officer
Philippe Capron, Member of the Management Board and Chief Financial Officer

Date: Thursday, August 29
9:00 am Paris time – 8:00 am London time – 3:00 am New York time

Media invited on a listen-only basis.

Internet: The conference can be followed on the Internet at: www.vivendi.com
(audiocast)

Numbers to dial:
United Kingdom: +44 (0) 203 427 1916 – code: 586 53 52
United States of America: +1646 254 3364 – code: 586 53 52
France: +33 (0) 176 77 22 30 – code: 983 37 98

Numbers for replay:
United Kingdom: +44 (0) 203 427 0598 – code:586 53 52
United States of America: +1347 366 9565 – code:586 53 52
France: +33 (0) 174 20 28 00 – code:983 37 98

On our website www.vivendi.com will be available dial-in numbers for the
conference call and for replay (14 days), an audio webcast and the slides of
the presentation.


APPENDIX I

VIVENDI

ADJUSTED STATEMENT OF EARNINGS

(IFRS, unaudited)
                                                                                     
2nd            2nd                                               1st Half       1st Half
Quarter        Quarter
2013           2012           %                                  2013           2012           %
                              Change                                                           Change
                                                                       
                                                                                                          
5,427          5,452          -    %       Revenues              10,842         11,008         -    %
                              0.5                                                              1.5
(3,005 )       (2,931 )                    Cost of               (6,189 )       (5,978 )
                                           revenues
2,422          2,521          -    %       Margin from           4,653          5,030          -    %
                              3.9          operations                                          7.5
                                                                                                          
                                           Selling,
                                           general and
                                           administrative
                                           expenses
                                           excluding
(1,628 )       (1,545 )                    amortization of       (3,188 )       (3,073 )
                                           intangible
                                           assets acquired
                                           through
                                           business
                                           combinations
                                                                                                          
                                           Restructuring
                                           charges and
(32    )       (25    )                    other operating       (74    )       (51    )
                                           charges and
                                           income
                                                                             
762            951            -    %       EBITA (*)             1,391          1,906          -    %
                              19.9                                                             27.0
                                                                                                          
                                           Income from
-              6                           equity                (8     )       (13    )
                                           affiliates
                                                                                                          
(141   )       (142   )                    Interest              (276   )       (276   )
                                                                                                          
12             2                           Income from           26             4
                                           investments
                                                                             
                                           Adjusted
                                           earnings from
                              -            continuing                                          -
633            817            22.5 %       operations            1,133          1,621          30.1 %
                                           before
                                           provision for
                                           income taxes
                                                                                                          
(111   )       (201   )                    Provision for         (208   )       (413   )
                                           income taxes
                                                                             
                                           Adjusted net
522            616            -    %       income before         925            1,208          -    %
                              15.3         non-controlling                                     23.4
                                           interests
                                                                                                          
(43    )       (42    )                    Non-controlling       (80    )       (81    )
                                           interests
                                                                             
479           574           -    %       Adjusted net          845           1,127         -    %
                              16.6         income (*)                                          25.0
                                                                       
                                                                                                          
                              -            Adjusted net                                        -
0.36           0.45           19.1 %       income per            0.64           0.88           27.1 %
                                           share - basic
                                                                                                          
                                                                                                          
                              -            Adjusted net                                        -
0.36           0.45           19.3 %       income per            0.64           0.88           27.2 %
                                           share - diluted
                                                                                                          

              In millions of euros, per share amounts in euros.

Nota: As from the second quarter of 2013, in compliance with IFRS 5,
Activision Blizzard and Maroc Telecom group have been reported in Vivendi’s
Consolidated Statement of Earnings as discontinued operations. In practice,
income and charges from these two businesses have been reported as follows:

  *Their contribution to each line of Vivendi’s Consolidated Statement of
    Earnings (before non-controlling interests) has been grouped under the
    line “Earnings from discontinued operations”;
  *In accordance with IFRS 5, these adjustments have been applied to all
    periods presented to ensure consistency of information; and
  *Their share of net income has been excluded from Vivendi’s adjusted net
    income.

Moreover, data published with respect to fiscal year 2012 has been adjusted
following the application of amended IAS 19.

(*) The reconciliation of EBIT to EBITA (adjusted earnings before interest and
income taxes) and of earnings, attributable to Vivendi SA shareowners to
adjusted net income is presented in the Appendix IV.

For any additional information, please refer to “2013 Half Year Financial
Report”, which will be released online later on Vivendi’s website
(www.vivendi.com).

                                                                                                       
APPENDIX II
                                                                                                          
VIVENDI
                                                                                                          
CONSOLIDATED STATEMENT OF EARNINGS
                                                                                                          
(IFRS, unaudited)
                                                                            
2nd            2nd                                               1st Half       1st Half
Quarter        Quarter
2013           2012           %                                  2013           2012           %
                              Change                                                           Change
                                                                       
                                                                                                          
5,427          5,452          -    %       Revenues              10,842         11,008         -    %
                              0.5                                                              1.5
(3,005 )       (2,931 )                    Cost of               (6,189 )       (5,978 )
                                           revenues
2,422          2,521          -    %       Margin from           4,653          5,030          -    %
                              3.9          operations                                          7.5
                                                                                                          
                                           Selling,
                                           general and
                                           administrative
                                           expenses
                                           excluding
(1,628 )       (1,545 )                    amortization of       (3,188 )       (3,073 )
                                           intangible
                                           assets acquired
                                           through
                                           business
                                           combinations
                                                                                                          
                                           Restructuring
                                           charges and
(32    )       (25    )                    other operating       (74    )       (51    )
                                           charges and
                                           income
                                                                                                          
                                           Amortization of
                                           intangible
(125   )       (101   )                    assets acquired       (235   )       (204   )
                                           through
                                           business
                                           combinations
                                                                                                          
                                           Impairment
                                           losses on
                                           intangible
15             (93    )                    assets acquired       (5     )       (93    )
                                           through
                                           business
                                           combinations
                                                                                                          
28             3                           Other income          28             8
                                                                                                          
(12    )       (34    )                    Other charges         (39    )       (55    )
                                                                             
668            726            -    %       EBIT                  1,140          1,562          -    %
                              8.0                                                              27.0
                                                                                                          
                                           Income from
-              6                           equity                (8     )       (13    )
                                           affiliates
                                                                                                          
(141   )       (142   )                    Interest              (276   )       (276   )
                                                                                                          
12             2                           Income from           26             4
                                           investments
                                                                                                          
3              3                           Other financial       44             6
                                           income
                                                                                                          
(131   )       (57    )                    Other financial       (159   )       (83    )
                                           charges
                                                                             
                                           Earnings from
                                           continuing
411            538            -    %       operations            767            1,200          -    %
                              23.6         before                                              36.1
                                           provision for
                                           income taxes
                                                                                                          
(84    )       (161   )                    Provision for         (172   )       (351   )
                                           income taxes
                                                                             
                              -            Earnings from                                       -
327            377            13.3 %       continuing            595            849            29.9 %
                                           operations
                                                                                                          
                                           Earnings from
405            245                         discontinued          936            716
                                           operations
                                                                             
732            622            +    %       Earnings              1,531          1,565          -    %
                              17.7                                                             2.2
                                                                                                          
(231   )       (156   )                    Non-controlling       (496   )       (400   )
                                           interests
                                                                             
                                           Earnings
501           466           +    %       attributable to       1,035         1,165         -    %
                              7.5          Vivendi SA                                          11.2
                                           shareowners
                                                                                                          

                                                                                                          
                                           Earnings
                                           attributable to
0.38           0.36           +    %       Vivendi SA            0.78           0.91           -    %
                              4.3          shareowners                                         13.6
                                           per share -
                                           basic
                                                                                                          
                                           Earnings
                                           attributable to
0.38           0.36           +    %       Vivendi SA            0.78           0.90           -    %
                              4.0          shareowners                                         13.9
                                           per share -
                                           diluted
                                                                                                          

              In millions of euros, per share amounts in euros.

Nota: As from the second quarter of 2013, in compliance with IFRS 5,
Activision Blizzard and Maroc Telecom group have been reported in Vivendi’s
Consolidated Statement of Earnings as discontinued operations. In practice,
income and charges from these two businesses have been reported as follows:

  *Their contribution to each line of Vivendi’s Consolidated Statement of
    Earnings (before non-controlling interests) has been grouped under the
    line “Earnings from discontinued operations”;
  *In accordance with IFRS 5, these adjustments have been applied to all
    periods presented to ensure consistency of information; and
  *Their share of net income has been excluded from Vivendi’s adjusted net
    income.

Moreover, data published with respect to fiscal year 2012 has been adjusted
following the application of amended IAS 19.

Please refer to the “2013 Half Year Financial Report”.

                                                                                                    
APPENDIX III

VIVENDI

REVENUES AND EBITA BY BUSINESS SEGMENT

(IFRS, unaudited)
                                                                                                                               
2nd           2nd                        % Change                          1st          1st                       % Change
Quarter       Quarter       %            at             (in millions       Half         Half         %            at
2013          2012          Change       constant       of euros)          2013         2012         Change       constant
                                         rate                                                                     rate
                                                                                                                               
                                                                                  
                                                                                                                               
                                                        Revenues
1,314         1,238         +6.1%        +6.1%          Canal+ Group       2,600        2,470        +5.3%        +5.2%
1,145         961           +19.1%       +22.5%         Universal          2,236        1,922        +16.3%       +19.0%
                                                        Music Group
2,459         2,199         +11.8%       +13.2%         Media              4,836        4,392        +10.1%       +11.2%
                                                                                                                               
2,514         2,834         -11.3%       -11.3%         SFR                5,108        5,761        -11.3%       -11.3%
446           421           +5.9%        +13.9%         GVT                884          853          +3.6%        +14.7%
2,960         3,255         -9.1%        -8.0%          Telecom            5,992        6,614        -9.4%        -8.0%
                                                                                                                               
                                                        Non-core
                                                        operations
                                                        and others,
8             (2)           na           na             and                14           2            na           na
                                                        elimination
                                                        of
                                                        intersegment
                                                        transactions
5,427         5,452         -0.5%        +0.7%          Total              10,842       11,008       -1.5%        -0.2%
                                                        Vivendi
                                                                                  
                                                                                                                               
                                                        EBITA (*)
247           247           -            -0.3%          Canal+ Group       430          483          -11.0%       -11.0%
88            88            -            +4.9%          Universal          143          156          -8.3%        -5.5%
                                                        Music Group
335           335           -            +1.1%          Media              573          639          -10.3%       -9.7%
                                                                                                                               
378           552           -31.5%       -31.5%         SFR                706          1,113        -36.6%       -36.6%
97            107           -9.3%        -2.1%          GVT                196          223          -12.1%       -2.6%
475           659           -27.9%       -26.8%         Telecom            902          1,336        -32.5%       -30.9%
                                                                                                                               
(25)          (41)          +39.0%       +39.0%         Holding &          (47)         (64)         +26.6%       +26.7%
                                                        Corporate
                                                        Non-core
(23)          (2)           na           na             operations         (37)         (5)          na           na
                                                        and others
762           951           -19.9%       -18.6%         Total              1,391        1,906        -27.0%       -25.7%
                                                        Vivendi
                                                                                  

na: not applicable.

Nota: Data presented supra takes into account the following changes in the
consolidation of the following entities at the indicated dates:

  *at Canal+ Group: D8 and D17 (September 27, 2012), as well as “n” (November
    30, 2012); and
  *at Universal Music Group: EMI Recorded Music (September 28, 2012).

(*) The reconciliation of EBIT to EBITA (adjusted earnings before interest and
income taxes) is presented in the Appendix IV.

APPENDIX IV

VIVENDI

RECONCILIATION OF EBIT TO EBITA AND OF EARNINGS, ATTRIBUTABLE TO VIVENDI SA
SHAREOWNERS TO ADJUSTED NET INCOME

(IFRS, unaudited)

Vivendi considers EBITA (adjusted earnings before interest and income taxes)
and adjusted net income, non-GAAP measures, to be relevant indicators to
assess the group’s operating and financial performance. Vivendi Management
uses EBITA and adjusted net income to manage the group because they better
illustrate the underlying performance of continuing operations by excluding
most non-recurring and non-operating items.

                                                              
2nd            2nd            (in millions of        1st          1st
Quarter        Quarter        euros)                 Half         Half
                                                     2013         2012
2013           2012
                                                  
                                                                             
668            726            EBIT (*)               1,140        1,562
                              Adjustments
                              Amortization of
                              intangible
125            101            assets acquired        235          204
                              through
                              business
                              combinations (*)
                              Impairment
                              losses on
                              intangible
(15)           93             assets acquired        5            93
                              through
                              business
                              combinations (*)
(28)           (3)            Other income (*)       (28)         (8)
12             34             Other charges          39           55
                              (*)
762            951            EBITA                  1,391        1,906

                                                              
2nd            2nd            (in millions of        1st          1st
Quarter        Quarter        euros)                 Half         Half
                                                     2013         2012
2013           2012
                                                  
                                                                             
                              Earnings
501            466            attributable to        1,035        1,165
                              Vivendi SA
                              shareowners (*)
                              Adjustments
                              Amortization of
                              intangible
125            101            assets acquired        235          204
                              through
                              business
                              combinations (*)
                              Impairment
                              losses on
                              intangible
(15)           93             assets acquired        5            93
                              through
                              business
                              combinations (*)
(28)           (3)            Other income (*)       (28)         (8)
12             34             Other charges          39           55
                              (*)
(3)            (3)            Other financial        (44)         (6)
                              income (*)
131            57             Other financial        159          83
                              charges (*)
                              Earnings from
(405)          (245)          discontinued           (936)        (716)
                              operations (*)
                              Change in
                              deferred tax
                              asset related to
                              Vivendi SA's
15             5              French                 31           11
                              Tax Group and to
                              the Consolidated
                              Global Profit
                              Tax
                              Systems
                              Non-recurring
36             9              items related to       43           16
                              provision for
                              income taxes
                              Provision for
(78)           (54)           income taxes on        (110)        (89)
                              adjustments
                              Non-controlling
188            114            interests on           416          319
                              adjustments
479            574            Adjusted net           845          1,127
                              income
                                                                             

Nota: As from the second quarter of 2013, in compliance with IFRS 5,
Activision Blizzard and Maroc Telecom group have been reported in Vivendi’s
Consolidated Statement of Earnings as discontinued operations. In practice,
income and charges from these two businesses have been reported as follows:

  *Their contribution to each line of Vivendi’s Consolidated Statement of
    Earnings (before non-controlling interests) has been grouped under the
    line “Earnings from discontinued operations”;
  *In accordance with IFRS 5, these adjustments have been applied to all
    periods presented to ensure consistency of information; and
  *Their share of net income has been excluded from Vivendi’s adjusted net
    income.

Moreover, data published with respect to fiscal year 2012 has been adjusted
following the application of amended IAS 19.

Please refer to the “2013 Half Year Financial Report”.

(*) As reported in the Consolidated Statement of Earnings.

APPENDIX V

VIVENDI

ADJUSTMENTS TO COMPARATIVE INFORMATION WITH RESPECT TO FISCAL YEAR 2012:
CONSOLIDATED STATEMENT OF EARNINGS AND ADJUSTED STATEMENT OF EARNINGS

(IFRS, unaudited)

As from the second quarter of 2013, in compliance with IFRS 5, Activision
Blizzard and Maroc Telecom group have been reported in Vivendi’s Consolidated
Statement of Earnings as discontinued operations. In practice, income and
charges from these two businesses have been reported as follows:

  *Their contribution to each line of Vivendi’s Consolidated Statement of
    Earnings (before non-controlling interests) has been grouped under the
    line “Earnings from discontinued operations”;
  *In accordance with IFRS 5, these adjustments have been applied to all
    periods presented to ensure consistency of information; and
  *Their share of net income has been excluded from Vivendi’s adjusted net
    income.

Moreover, data published with respect to fiscal year 2012 has been adjusted
following the application of amended IAS 19.

As a result, the Consolidated Statement of Earnings and the Adjusted Statement
of Earnings with respect to the fiscal year 2012 have been adjusted as
presented below:

CONSOLIDATED STATEMENT OF EARNINGS    ADJUSTED STATEMENT OF EARNINGS   
                       Year ended        Year
                    December          ended       
                       31, 2012          December
                                         31, 2012
                                        
                                                                             
Revenues               22,577            22,577          Revenues
Cost of revenues       (12,672  )        (12,672 )       Cost of
                                                         revenues
Margin from            9,905             9,905           Margin from
operations                                               operations
Selling, general                                         Selling,
and                                                      general and
administrative                                           administrative
expenses                                                 expenses
excluding                                                excluding
amortization of        (6,469   )        (6,469  )       amortization of
intangible                                               intangible
assets acquired                                          assets acquired
through business                                         through
combinations                                             business
                                                         combinations
Restructuring                                            Restructuring
charges and                                              charges and
other operating        (273     )        (273    )       other operating
charges and                                              charges and
income                                                   income
Amortization of
intangible
assets acquired        (436     )
through business
combinations
Impairment
losses on
intangible             (760     )
assets acquired
through business
combinations
Reserve accrual
regarding the
Liberty Media
Corporation            (945     )
litigation in
the United
States
Other income           19
Other charges          (236     )        
EBIT                   805               3,163           EBITA
Income from                                              Income from
equity                 (38      )        (38     )       equity
affiliates                                               affiliates
Interest               (544     )        (544    )       Interest
Income from            7                 7               Income from
investments                                              investments
Other financial        37
income
Other financial        (204     )        
charges
                                                         Adjusted
Earnings from                                            earnings from
continuing                                               continuing
operations             63                2,588           operations
before provision                                         before
for income taxes                                         provision for
                                                         income taxes
Provision for          (604     )        (766    )       Provision for
income taxes                                             income taxes
Earnings from
continuing             (541     )
operations
Earnings from
discontinued           1,505            
operations
                                                         Adjusted net
Earnings               964              1,822          income before
                                                         non-controlling
                                                         interests
Of which                                                 Of which
Earnings
attributable to        179               1,705           Adjusted net
Vivendi SA                                               income
shareowners
Non-controlling        785              117            Non-controlling
interests                                                interests
                                                                             
Earnings
attributable to                                          Adjusted net
Vivendi SA             0.14              1.31            income per
shareowners per                                          share - basic
share - basic                                            (in euros)
(in euros)
Earnings
attributable to                                          Adjusted net
Vivendi SA             0.14              1.31            income per
shareowners per                                          share - diluted
share - diluted                                          (in euros)
(in euros)

^1 Plans to sell Activision Blizzard and Maroc Telecom group. As from the
second quarter of 2013 in compliance with IFRS 5, Activision Blizzard and
Maroc Telecom group have been reported in Vivendi’s Consolidated Statement of
Earnings as discontinued operations. In practice, income and charges from
these two businesses have been reported as follows:

- Their contribution to each line of Vivendi’s Consolidated Statement of
Earnings (before non-controlling interests) has been grouped under the line
“Earnings from discontinued operations”.

- In accordance with IFRS 5, these adjustments have been applied to all
periods presented to ensure consistency of information.

- Their share of net income has been excluded from Vivendi’s adjusted net
income.

^2 The planned sales of the majority of Vivendi’s interest in Activision
Blizzard and its entire interest in Maroc Telecom group are expected to close
by the end of September and the end of December, respectively.

^3 For more information about EBITA, see appendix IV.

^4 For the reconciliation of earnings attributable to Vivendi SA shareowners
to adjusted net income, see appendix IV.

^5 According to the terms known to date and excluding the expected proceeds
from the sale of the remaining 83 million Activision Blizzard shares owned.

^6 D8/D17 consolidated since September 27, 2012 and nc+ consolidated since
November 30, 2012.

^7 Tariff cuts imposed by regulatory decision:

i) 33% decrease in mobile voice termination regulated price on July 1, 2012
and a further 20% decrease on January 1, 2013;

ii) 33% decrease in SMS termination regulated price on July 1, 2012;

iii) Roaming tariff cuts on July 1, 2012;

iv) 50% decrease in fixed voice termination regulated price on July 1, 2012
and a further 47% decrease on January 1, 2013.

^8 Mobile revenues and broadband Internet and fixed revenues are determined as
revenues before elimination of intersegment operations within SFR.

^9 According to The NPD Group, GfK Chart-Track and Activision Blizzard
internal estimates and including toys and accessories.

Contact:

Vivendi
Media
Paris
Jean-Louis Erneux, +33 (0)1 71 71 15 84
Solange Maulini, +33 (0) 1 71 71 11 73
or
New York
Jim Fingeroth (Kekst), +1 212 521 4819
or
Investor Relations
Paris
Jean-Michel Bonamy, +33 (0) 1 71 71 12 04
Aurélia Cheval, +33 (0) 1 71 71 12 33
France Bentin, +33 (0) 1 71 71 30 45
or
New York
Eileen McLaughlin, +1 212.572.8961