Vivendi (VIV) CMD 2024 summary

Strategic direction and future plans

• Announced a split from Vivendi to unlock value, increase international visibility, and enable external growth through acquisitions and share-based incentives.

• Focus on integration across creative, media, and health business units, with a strong emphasis on cross-fertilization and client partnership.

• Accelerating investment in tech, data, and AI, with €400 million committed over the next four years, aiming for €1 billion over 13 years.

• Converged, a new operating system, will transform client and employee experience, driving efficiency and effectiveness.

• M&A remains a key growth driver, targeting 5-10 bolt-on acquisitions per year, with a focus on cultural fit and accretive financials.

Spin-off and listing plans

• Vivendi is proceeding with the spin-off of Canal+, Havas, and Louis Hachette Group, with shareholder approval to be sought on December 9, 2024.

• Canal+ shares are set for admission to the London Stock Exchange, Havas to Euronext Amsterdam, and Louis Hachette Group to Euronext Growth (Paris), all planned for December 16, 2024.

• Vivendi will remain listed on Euronext Paris and aims to enhance its attractiveness, reserving the right to pay extraordinary dividends.

• The spin-off will result in Vivendi losing control of Canal+, Havas, Lagardère, and Prisma Media, with illustrative financials reflecting this change.

Financial guidance and performance

• Achieved revenue growth from €2.2 billion in 2018 to €2.7 billion in 2023, averaging 4.5% annual growth.

• EBIT margin improved from 10.8% in 2018 to 12.1% in 2023, with a target of 12.5%-13.5% for 2025 and a midterm ambition of 14%-15%.

• 2024 guidance: organic growth between -1% and 4%, adjusted EBIT above €330 million, and year-end net cash around €150 million.

• Maintains a strong dividend policy, aiming for a payout ratio of 40%-50%, with a 2025 dividend payout targeted at about 40% of 2024 net income.

• No goodwill impairments recorded on acquisitions, reflecting disciplined M&A execution.