Vivendi Se Unsp/Adr

Ladies and gentlemen, welcome to the Vivendi conference call regarding its 2025 annual results. The call will be structured in two parts. First, a presentation by the Vivendi Group management team, represented by Mr. Arnaud de Puyfontaine, CEO, and Francois Leraz, CFO. Afterwards, there will be a Q&A session. During this session, you may ask questions by dialing pound key 5 on your telephone keypad to enter the queue. I will now hand over to the management team. Gentlemen, please go ahead.

Hello, good evening and thank you for being with us this evening. We will, with François, comment on the full year 2025 annual results. So I will start by the key highlights and to get straight to the point. 2025 marks Vivendi's first fiscal year in its new structure following the spin-off in December 2024. The group has refocused over the past 12 months its business portfolio on content, media and entertainment, following the divestment of its telecom asset in Italy and Spain. Gameloft continued its strong momentum, driven by its successful transformation despite a challenging environment for the video game industry. and the group pursued its strategy of reducing corporate operating costs at headquarters. And now I'm going to hand over to François.

Thank you Arnaud. Good evening everyone. So I will walk you through the main figures of this year 2025 starting by the key figures of the P&L with these revenues of 307 million. EBITDA of 45 million compared with minus one last year and net income group share of 20 million for the year 2025. On the portfolios listed financial assets, we are at 5.5 billion compared with 6.8 at the end of previous year and we'll come back on it. In terms of financial net debt, our net debt is at 1.5 billion. before the loan to Lagardère, this 1.5 are to be compared with 2.5 one year before. If we now move to our portfolio of a listed company, no major move since our previous communication, but the stake in MFE, Media for Europe, which went down from 1980 to 1592% due to the dilution after the deal of MFE with ProSieben in Germany. For the other stakes, we are at the level we were during our last communication, i.e. almost 10% for Universal, 19% for Banijay, 11% for Prisa, and 13% for Lagardère. In terms of valuation of our portfolio, the listed financial portfolio is at 5.532 billion, mainly coming from UMG, 4 billion. Benny J is almost 700 million. Lagarde, 350 million. And MFE, 400 million. In terms of dividend received from these financial assets, it has represented 158 million for the year 2025. Now let's have a look at the evolution of our portfolio between the end of the year 2024 and the year 2025. It went down from 7.2 billion to 5.8 billion. This is the overall portfolio, the one I described as listed company, to which we have the Gameloft stake and the treasury shares. So we move from 7.2 to 5.9, let's say. Partly the evolution comes from acquisition and sale of the period. We have disposed mainly Telecom Italia and Telefonica representing a divestment of 1.4 billion during the period. and in the same time we have acquired new shares of Lagardère for 296 million, which was the end of the tender offer with Droits de Session, which had been exercised during the first half of 2025. So it's a net disbursement of 1 billion, 1 billion 053, And in the same time, we have had evolution of our existing portfolio. The main evolution is about UMG, which went down by 453 million. It's the evolution of the stock price between the end of the year 2025, roughly 24 euro per share, to the end of the year 2025, roughly 22 euro per share. There has been a positive evolution of TIM before the disposal, which is 206 million. and that explains the total change of portfolio of 294 million. A few words now on Gameloft. Gameloft which has done a very positive year. The revenue is up by 4.2% in organic and the EBITDA almost doubled from 8 million to 15 million. and you see the evolution by a region with a very sound performance of North America. Let's say on Gameloft that Gameloft has worked hard on its cost basis and now take advantage of this reduction of cost with a good performance of main games including Disney's Remake Valley which is the game number one in the Gameloft portfolio. In terms of financial net debt evolution, from 2,573,000,000 at the end of the previous year to 1,500,000,000 at the end of this year, mainly coming, as you can imagine, from the disaster I just described, 1.5 billion, Telecom Italia, Telefonica mainly, and the acquisition of the Lagardère share for 296. The CFFO has been very solid. The cash flow from operation at 68 million. We have paid dividend for 40 million. Interest in tax for 42 million. And we have the impact of the discontinued operation mainly coming from the end of the split operation, we have generated 82 million of discontinued operation, which leads us to this 1.5 billion net debt at the end of the year 2025. This 1.5 billion on the next chart, you will see where it's coming from. We have still our margin loan with five banks for 1.3 and 50 billion euro. In addition, we have some short-term marketable securities for 352 million, mainly in UCP. So we have this 1.7 billion financial net debt and 200 of gross cash position, which leads to the 1.5 net debt position at the end of the year 2025. If we now move to our P&L, the revenues, I said, 307 million, up by 4.3% in organic, mainly coming from Gameloft, which reflects the good performance I've already described. And by business unit, EBITDA, you see the positive evolution of Gameloft I have already described. and the very positive evolution also of the corporate costs, which are coming from 126 million to 99 million, which is the route we are on to reduce our issue cost for the coming months. To finish, I will describe the net income group share, which is a profit of 20 million compared with the huge loss of last year due to the split operation. Starting from the EBITDA I have just described at 45 million then you have a few things to say but the level of the interest at 73 million and mitigated by the income of from operation which are the dividend coming from Lagardère, MFE and Banijet. So the net financial cost is at zero with the interest being at the interest plus the other financial So that's where we are in a nutshell. And what we can tell you is that the Q1 revenues will be released on April 21st. Day of the next shareholder meeting and that during this shareholder meeting will be proposed a dividend of 4 cents per share which is a yield of almost 2% at the current stock price in line with the guidance we gave during the time of the split. This dividend will be paid on April 24th. So that's where we are for this year 2025. And with Arnaud, we are now at your disposal to answer any question. Please.