<PAGE> 1
Filed by The Seagram Company Ltd.
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 13, 2000
MATERIALS PRESENTED AT INVESTOR CONFERENCE IN PARIS ON OCTOBER 13, 2000
* * * * * * *
These materials 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 materials address the
business combination of Vivendi, Canal+ and Seagram. 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+
and Seagram businesses will not be integrated successfully; costs related to
the combination; failure of the Vivendi, Canal+ or Seagram shareholders to
approve the combination; the risk that Seagram will be unable to effect the
disposition of its Spirits & Wine business or effect such disposition on
satisfactory terms and conditions; inability to further identify, develop and
achieve success for new products, services and technologies; increase
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. None of Vivendi,
Canal+ or Seagram undertakes any obligation to provide updates or to revise any
forward-looking statements.
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 U.S. 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.
* * * * * * *
<PAGE> 2
JORGEN LARSEN
CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
UNIVERSAL MUSIC INTERNATIONAL
[VIVENDI UNIVERSAL LOGO]
<PAGE> 3
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]
<PAGE> 4
UNIVERSAL MUSIC INTERNATIONAL
- Snapshot of 5 key International markets
- Geographic coverage/expansion plans
- Importance of domestic/"local" repertoire
- Key obligations of international subsidiary
- Major issues, initiatives
[VIVENDI UNIVERSAL LOGO]
<PAGE> 5
WHERE ARE WE?
[GRAPHIC OF WORLD MAP]
Whole or majority owned subsidiaries in 61 of 193 countries
[VIVENDI UNIVERSAL LOGO]
<PAGE> 6
SNAPSHOT OF MAJOR MARKETS
<TABLE>
<CAPTION>
% OF WORLD MARKET SHARE
MARKET %
<S> <C> <C>
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
===== =====
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 7
RECENT OR STRATEGIC ENTRY
Population & Percent of World Population
<TABLE>
<CAPTION>
Million %
------- --------
<S> <C> <C>
India 976 17
China 1,255 21
Russia (strategic) 147 3
Middle East/ North Africa 240 4
2,618 45
------- --------
</TABLE>
(Est. World Population 1998: 5.9 Billion)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 8
EXPANSION
- Middle East
- Turkey
- Lebanon
- Saudi TOTAL
- Dubai [Arrow MARKET [Arrow INDIA
- UAE Graphic] $300M Graphic]
- Egypt
- Ex-French
North Africa
[VIVENDI UNIVERSAL LOGO]
<PAGE> 9
WHAT DOES IT REALLY LOOK LIKE OUT THERE?
[PHOTO OF TWO MEN & TWO WOMEN]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 10
MAJOR DOMESTIC ARTISTS OUTSIDE NORTH AMERICA
- ABBA (Sweden)
- Aqua (Denmark)
- Rammstein (Germany)
- Andrea Bocelli (Italy)
- U2 (UK)
- Johnny Hallyday (France)
- Rosana
(Spain)
- Jose Feliciano
(Puerto Rico)
- Jacky Cheung
(Hong Kong)
- Sandy & Junior
(Brazil)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 11
% LOCAL REPERTOIRE
<TABLE>
<CAPTION>
5 Key Markets %
----------------------- -----------------
<S> <C>
Japan 77
UK 49
Germany 43
France 53
Brazil 73
</TABLE>
(Source: IFPI)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 12
THREE MAJOR OBLIGATIONS OF EACH SUBSIDIARY
- Powerful marketing machine for truly global artists - often of US/UK
origin
- Local investment in and success with domestic artists
- Selective crossborder marketing of successful local artists -
regardless of style and language
[VIVENDI UNIVERSAL LOGO]
<PAGE> 13
GLOBAL ARTISTS
[GRAPHIC OF SHANIA TWAIN "COME ON OVER" ALBUM]
Shania Twain
------------
"Come on Over"
Total sales 10m
Previous album
sales less than 1m
[GRAPHIC OF BON JOVI "CRUSH" ALBUM]
Bon Jovi
--------
"Crush"
Released 5/00
Sales to date 5m
Est. sales 12/01 10m
[GRAPHIC OF EMINEM "MARSHALL MATHERS" ALBUM]
Eminem
------
"Marshall Mathers"
Released 5/00
Sales to date 2.5m
Est. sales 6/01 6m
[VIVENDI UNIVERSAL LOGO]
<PAGE> 14
MAJOR ISSUES/INITIATIVES
[CHECK MARK] Geographic expansion
[CHECK MARK] Global Marketing
- Pricing
- Catalog/UM3
- Manufacturing & Distribution
(trend away from physical product)
- e-business / i-activities
[VIVENDI UNIVERSAL LOGO]
<PAGE> 15
EURO PRICE HARMONIZATION - PRICE TO DEALER
[CHART OF TOP PRICE AS AT SEPTEMBER 2000]
Current PPD (euro)
<TABLE>
<S> <C>
UK* 14.54
France 13.22
Finland 13.19
Norway* 12.95
Italy 12.9
Switzerland* 12.86
Portugal 12.84
Sweden* 12.75
Denmark 12.74
Belgium 12.64
Spain 12.62
Germany 12.58
Austria 12.57
Netherlands 12.56
Ireland 12.2
Greece 12.16
</TABLE>
Source: UMI reported PPDs, Euro figures based on August 2000 exchange rates
Note: Some of the price changes observed for countries marked with a * are due
to exchange rate fluctuations between the Euro and local currencies
[VIVENDI UNIVERSAL LOGO]
<PAGE> 16
UM3
- Catalogue exploitation
- Compilations/TV advertised product
- Commercial and consumer marketing
--------------------------------------------------------------------------------
Aim is to increase from 30% to 40% of total business
--------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 17
MANUFACTURING AND DISTRIBUTION
- Stand-alone
- Joint venture
- Outsourcing
- Vivendi synergies
--------------------------------------------------------------------------------
Restructuring is required in view of future technological changes
--------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 18
E-BUSINESS
- Existing Vivendi expertise
- Local language initiatives
- Provide artists with e-space services and presence
[VIVENDI UNIVERSAL LOGO]
<PAGE> 19
[GRAPHIC OF UNIVERSAL LOGO]
UNIVERSAL MUSIC GROUP
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 20
VIVENDINET LOGO]
PHILIPPE GERMOND
ANALYST PRESENTATION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 21
[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.
<PAGE> 22
[VIVENDINET LOGO]
VIVENDINET - TABLE OF CONTENTS
- VivendiNet overview
- Thematic portals
- E-Nablers
- E-Vestor
- Vizzavi
- Summary
[VIVENDI UNIVERSAL LOGO]
<PAGE> 23
[VIVENDINET LOGO]
VIVENDINET - STRUCTURE
<TABLE>
<CAPTION>
E-VESTOR E-NABLERS
<S> <C> <C> <C> <C> <C>
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]
</TABLE>
<TABLE>
<CAPTION>
E-PORTALS
<S> <C> <C> <C> <C> <C> <C>
50% [SCOOT LOGO] [CANAL LOGO] 100% [I! 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%
50% [SQUAREFINANCE LOGO] 50% 40% [VODAFONE AIRTOUCH LOGO]
[FLIPSIDE.COM LOGO]
40%
50%
[EDUCATION.COM LOGO]
50%
[HAVAS LOGO]
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 24
[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]
<PAGE> 25
[VIVENDINET LOGO]
VIVENDINET - STRATEGY
<TABLE>
<CAPTION>
MUSIC GAMES: FLIPSIDE SPORT MOVIES: ALLOCINE EDUCATION TRANSACTION: SCOOT ... OTHER THEMATIC ...
PORTALS
Preferred Arm's length
relationships relationships
<S> <C> <C>
I(FRANCE) VIZZAVI OTHER PORTALS
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 26
[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]
<PAGE> 27
[VIVENDINET LOGO]
THEMATIC PORTALS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 28
[VIVENDINET LOGO]
VIVENDINET - THEMATIC PORTALS
<TABLE>
<CAPTION>
E-VESTOR E-NABLERS E-PORTALS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
50% [SCOOT LOGO] 50% [CANAL LOGO] 100% [I! 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]
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 29
[VIVENDINET LOGO]
SCOOT : MULTI ACCESS
TRANSACTION INFOMEDIARY
- 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]
<PAGE> 30
[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]
<PAGE> 31
[VIVENDINET LOGO]
[SCOOT LOGO]
[WEB GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 32
[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]
<PAGE> 33
[VIVENDINET LOGO]
I (FRANCE)
- 3rd community site and 11th site in France, unique visitors up 20% per
month since January
- Complementary positioning with Vizzavi : advanced web users vs mass
market
- User base attractiveness: high CPM, high e-spending, opinion-makers
- Cost-efficient model : viral marketing, low acquisition cost, cost-free
content (community)
- Low-cost international roll-out (I-Spana, I-Italia...)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 34
[VIVENDINET LOGO]
ALLOCINE
- Movie-centric multimedia and multi-access service
X Information, personalization, rated community
X Multi-access ticketing
X E-commerce of movie merchandise
X Launch of AlloCine TV on CanalSatellite
- Movie ticketing market underdeveloped in France:
X Off-site ticket sales represent only 2% of market compared to
20% in the UK
- International development leveraging Canal Plus European footprint
- AlloCine profitable in 2000 before impact of AlloCine TV launch
[VIVENDI UNIVERSAL LOGO]
<PAGE> 35
[VIVENDINET LOGO]
ALLOCINE
[WEB GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 36
[VIVENDINET LOGO]
E-NABLERS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 37
[VIVENDINET LOGO]
VIVENDINET - E-NABLERS
<TABLE>
<CAPTION>
E-VESTOR E-NABLERS E-PORTALS
<S> <C> <C>
100% [AD 2-ONE LOGO]
100% [E-GLUE LOGO]
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 38
[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]
<PAGE> 39
[VIVENDINET LOGO]
E-NABLERS : AD 2-ONE
- Pan-European provider of revenue-generating solutions
- Differentiate from traditional online ad sales agency by using
multi-access tools and developing innovative packages
- Experienced media and advertising management (MCM, Ogilvy One, Universal
McCann, Regie Thematique, Carat...)
- Business Model of a B-to-B service company
X Estimated gross margin of Euro20M in 2001,Euro40M in 2002
X 50% of gross margin generated outside VivendiNet by end 2001
X Breakeven target : 2003 (3 years after launch)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 40
[VIVENDINET LOGO]
E-VESTOR
[VIVENDI UNIVERSAL LOGO]
<PAGE> 41
[VIVENDINET LOGO]
VIVENDINET-E-VESTOR
<TABLE>
<CAPTION>
E-VESTOR E-NABLERS E-PORTALS
<S> <C> <C> <C> <C> <C>
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]
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 42
[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]
<PAGE> 43
[VIVENDINET LOGO]
@VISO:
REVISED INVESTMENT STRATEGY
- Controlled investment size: Euro5-10M
- Investment schedule: first 6-12 month financing (possibly in partnership
with VC or strategic investors in the second round)
- Exit strategy: IPO or roll-up into listed US parent company as primary
mechanisms
[VIVENDI UNIVERSAL LOGO]
<PAGE> 44
[VIVENDINET LOGO]
[VIZZAVI LOGO]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 45
[VIVENDINET LOGO]
VIZZAVI - REVIEW OF KEY TERMS
[VIZZAVI LOGO]
- 50/50 joint-venture between Vodafone and VivendiNet
- 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]
<PAGE> 46
[VIVENDINET LOGO]
VIZZAVI - STRATEGY
[VIZZAVI LOGO]
- To become the leading European portal within 3 years
- To be the first offering seamless multi-access service
- Differentiation through preferred relationships with mobile operators
(SFR and Vodafone companies), pay-TV operators (Canal +) and content
producers (Universal)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 47
[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]
<PAGE> 48
[VIVENDINET LOGO]
VIZZAVI - GEOGRAPHICAL ROLL-OUT
[VIZZAVI LOGO]
[MAP GRAPHIC]
Launch in 2000
Launch in 2001
[VIVENDI UNIVERSAL LOGO]
<PAGE> 49
[VIVENDINET LOGO]
VIZZAVI - MAJOR INITIATIVES (2001)
[VIZZAVI LOGO]
- Seamless multi-access personalisation
- Voice portal: serving all mobile users
- Unified (voice and e-mail) messaging and speed-to-market for new handsets
in partnership with mobile operators
- Billing and customer care integration with mobile and Pay-TV operators
- E-commerce: secured (smart card) payment by mobile and set-top box
- Location-based services with mobile operators
- Rich-media content channels (music, games, movies...)
- Virtual ISP (dial-up and broadband)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 50
[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]
<PAGE> 51
[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]
<PAGE> 52
[VIVENDINET LOGO]
VIZZAVI - BRAND VISION & PURPOSE
[VIZZAVI LOGO]
- Vizzavi delivers on technology's promise to make life better
- It helps you deal with the inevitable, and focus on the enjoyable
- It helps put you in control of how and where you spend your time
- It inspires and empowers you to get more out of living
vizzavi -- life unlimited
[VIVENDI UNIVERSAL LOGO]
<PAGE> 53
[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]
<PAGE> 54
[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]
<PAGE> 55
[VIVENDINET LOGO]
SUMMARY
[VIVENDI UNIVERSAL LOGO]
<PAGE> 56
[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]
<PAGE> 57
[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]
<PAGE> 58
[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]
<PAGE> 59
[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]
<PAGE> 60
[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]
<PAGE> 61
[VIVENDINET LOGO]
VIVENDI UNIVERSAL.NET: THE WAY FORWARD
<TABLE>
<CAPTION>
Hot Customer Content
<S> <C> <C> <C> <C>
[UNIVERSAL MUSIC] [UNIVERSAL MOVIES] [CANAL + TV] [HAVAS GAMES] [HAVAS EDUCATION]
</TABLE>
Aggregation/Incubation
[VIVENDI UNIVERSAL.NET]
<TABLE>
<CAPTION>
Customer Bases
<S> <C> <C> <C> <C>
[CANAL + PAY TV] [CEGETEL/SFR] [HAVAS] [UNIVERSAL] [VODAFONE]
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 62
[VIVENDINET LOGO]
APPENDIXES
[VIVENDI UNIVERSAL LOGO]
<PAGE> 63
[VIVENDINET LOGO]
VIVENDINET'S CONSOLIDATION PERIMETER
<TABLE>
<CAPTION>
OWNERSHIP CONSOLIDATION
SUBSIDIARY (%) METHOD REVENUE MODEL/DRIVERS BREAKEVEN TARGET
--------------- -------- ----------------- ----------------------------------------- --------------------
<S> <C> <C> <C> <C>
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
</TABLE>
<TABLE>
<CAPTION>
OWNERSHIP CONSOLIDATION
SUBSIDIARY (%) METHOD E-INVESTOR /E-CUBATOR
--------------- -------- ----------------- -----------------------------------------
<S> <C> <C> <C>
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
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 64
[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]
<PAGE> 65
[VIVENDINET LOGO]
FLIPSIDE.COM
<TABLE>
<CAPTION>
==================================== ========================================
AUDIENCE
KEY ACHIEVEMENTS (WWW.FLIPSIDE.COM)
==================================== ========================================
<S> <C>
- 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
------------------------------------ ----------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 66
[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]
<PAGE> 67
[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]
<PAGE> 68
[VIVENDINET LOGO]
CANALNUMEDIA
<TABLE>
<CAPTION>
==================================== ========================================
AUDIENCE
VISION & STRATEGY (WWW.CANALPLUS.FR)
==================================== ========================================
<S> <C>
- 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)
------------------------------------ ----------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 69
[VIVENDINET LOGO]
BONJOUR
<TABLE>
<CAPTION>
==================================== ========================================
KEY ACHIEVEMENTS TRAFFIC (BONJOUR.FR)
==================================== ========================================
<S> <C>
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
------------------------------------ ----------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 70
[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]
<PAGE> 71
[VIVENDINET LOGO]
CADRES ONLINE
<TABLE>
<CAPTION>
==================================== ========================================
KEY ACHIEVEMENTS AUDIENCE
(WWW.CADRESONLINE.COM)
==================================== ========================================
<S> <C>
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
------------------------------------ ----------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 72
[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]
<PAGE> 73
[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]
<PAGE> 74
[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]
<PAGE> 75
[VIVENDINET LOGO]
01.NET
==================================== ========================================
AUDIENCE
KEY ACHIEVEMENTS (WWW.01NET.COM)
==================================== ========================================
PAGE VIEWS (M) (SOURCE: DART)
- LEADING INFORMATION TECHNOLOGY [BAR CHART]
WEB SITE IN FRANCE <TABLE>
<CAPTION>
- VERSION 2 OF SITE LAUNCHED IN <S> <C>
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 </TABLE>
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]
<PAGE> 76
[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]
<PAGE> 77
[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 <TABLE>
FRANCE FINANCE CHANNEL <CAPTION>
<S> <C>
- 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 </TABLE>
----------------------------------------
- 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]
<PAGE> 78
[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]
<PAGE> 79
[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]
<PAGE> 80
[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]
<PAGE> 81
[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]
<PAGE> 82
[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]
<PAGE> 83
[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]
<PAGE> 84
[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]
# # #
<PAGE> 85
DOUG MORRIS
Chairman and
Chief Executive Officer
Universal Music Group
[VIVENDI UNIVERSAL LOGO]
<PAGE> 86
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]
<PAGE> 87
RECENT RESULTS
Fiscal Year Ending June 30,2000
<TABLE>
<CAPTION>
(US $ Millions)
<S> <C>
Revenue: North America $2,512
Europe 2,416
Rest of the World 1,032
Publishing 276
------
6,236
EBITDA 1,018
Margin 16%
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 88
CASH FLOW
(Fiscal Year 2000)
<TABLE>
<CAPTION>
($MM)
-----
<S> <C>
EBITDA 1018
Gross Artist Investment (640)
Recoupments 680 40
----
Capital Expenditures
& Working Capital 317
----
Cash Flow From Operation* 741
</TABLE>
* Before e-business Investment and Acquisition Costs
[VIVENDI UNIVERSAL LOGO]
<PAGE> 89
UMG PORTRAIT
Global Market Share (CY 1999)
<TABLE>
<S> <C>
Universal 21.8%
Sony 17.3%
EMI 13.5%
Warner 11.7%
BMG 11.7%
All Other 24.0%
</TABLE>
Source: IFPI, MBI, Internal Market Research, Local Industry Association Chapter
[VIVENDI UNIVERSAL LOGO]
<PAGE> 90
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]
<PAGE> 91
CATALOG
- Strong catalogs deliver 40-50% margins
- Current hits = Tomorrow's catalog
[VIVENDI UNIVERSAL LOGO]
<PAGE> 92
U.S. MARKET SHARE
(Year-to-Date)
<TABLE>
<S> <C>
Universal 28.77%
BMG 19.73%
Sony 16.06%
Warner 14.57%
EMI 7.65%
</TABLE>
Source: SoundScan
[VIVENDI UNIVERSAL LOGO]
<PAGE> 93
IN A DIGITAL WORLD
Record label functions will not go away
- Discovering artists
- Financing artist acquisition and recording
- Manufacturing & Distribution
- Sales/Traditional retail
- Marketing, Promotion, Publicity
[VIVENDI UNIVERSAL LOGO]
<PAGE> 94
IN A DIGITAL WORLD
Record label functions will be enhanced
- Direct interactive marketing
- Content management & storage
- Network infrastructure
- Consumer aggregation
[VIVENDI UNIVERSAL LOGO]
<PAGE> 95
HIP-HOP AND ROCK/RAP ARTISTS
(units in Millions)
<TABLE>
<CAPTION>
Artist Album 1 Album 2 Album 3 Album 4
<S> <C> <C> <C> <C>
Jay-Z 1.2 5.1 3.0
DMX 4.3 3.3 4.6
Limp
Bizkit 3.0 8.0 4.5
(units shipped)
LL Cool J 2.4 1.4 1.2 1.2
(Last 4 (YTD)
Albums)
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 96
ESTABLISHED ARTISTS
Last Five Albums (Units in Millions)
<TABLE>
<CAPTION>
Artist Album 1 Album 2 Album 3 Album 4 Album 5
<S> <C> <C> <C> <C> <C>
Bon Jovi 7.0 10.3 15.2 6.4 5.6 (YTD)
Sting 3.8 6.6 7.7 3.6 5.8
U2 5.3 8.3 5.0 5.3 11.1
George Strait 2.5 2.3 1.8 1.3 1.0 (YTD)
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 97
WORLD MUSIC MARKET
<TABLE>
<CAPTION>
1988 1990 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Combined Majors 69.8 73.6 73.8 72.1 72.8 74.5 75.9 76.0
Combined Indies 30.2 26.4 26.2 27.9 27.2 25.5 24.1 24.0
</TABLE>
Source: IFPI, MBI, Internal Market Research, Local Industry Association Chapters
[VIVENDI UNIVERSAL LOGO]
<PAGE> 98
[UNIVERSAL LOGO]
UNIVERSAL MUSIC GROUP
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 99
BRUCE HACK
Vice Chairman
Universal Music Group
[VIVENDI UNIVERSAL LOGO]
<PAGE> 100
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]
<PAGE> 101
AGENDA
- Digital music opportunity
- UMG digital strategy
- Merger synergies
[VIVENDI UNIVERSAL LOGO]
<PAGE> 102
GLOBAL INTERNET PENETRATION
USERS IN MILLIONS
<TABLE>
<CAPTION>
1999 2005
<S> <C> <C>
Digital TV 15 100
WAP & 3G Mobile 0 300
Internet PC 140 300
Console Games 0 45
</TABLE>
Source: Broker Research [VIVENDI UNIVERSAL LOGO]
<PAGE> 103
DIGITAL OPPORTUNITIES
<TABLE>
<CAPTION>
SALES/
PRODUCT MARKETING DISTRIBUTION
------- --------- -------------
<S> <C> <C> <C>
CD Radio Retail Stores
Physical TV Online
Print
e-Singles Viral Digital TV
Digital Subscription Grassroots PC
Streaming
Portal Wireless
Locked Marketing
Content
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 104
DIGITAL MUSIC OPPORTUNITIES
Wireless
PCs Portals
Products Channels
Services
Artists TVs
PDAs
Music Kiosks
[VIVENDI UNIVERSAL LOGO]
<PAGE> 105
DIGITAL MUSIC THREATS
PIRACY
DISINTERMEDIATION
MARGIN PRESSURE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 106
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]
<PAGE> 107
LEGAL EFFORTS TO PROTECT COPYRIGHTS
<TABLE>
<CAPTION>
CASE
US LEGAL ACTION RESULTS
<S> <C> <C>
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.
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 108
LEGAL EFFORTS TO PROTECT COPYRIGHTS
<TABLE>
<CAPTION>
CASE
US LEGAL ACTION RESULTS
<S> <C> <C>
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.
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 109
CONTENT PROTECTION
MUSIC INDUSTRY ROADMAP
[CONTENT VEHICLE GRAPHIC]
CD content protection roadmap Sep00
[VIVENDI UNIVERSAL LOGO]
<PAGE> 110
WATERMARK TECHNOLOGY
HOW IT WORKS
CD with Watermark
[GRAPHIC] Compress to MP3 SDMI-compliant player content
(screen for watermark) rejected
[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]
<PAGE> 111
NEW BUSINESS OPPORTUNITIES
PRODUCTS AGGREGATION SERVICES
CDs
DVD
CD2
Locked Content
Downloads
Streams
Music Programs
Subscription
Lockers
Jukeboxes
Portals
Channels
[VIVENDI UNIVERSAL LOGO]
<PAGE> 112
US ONLINE MUSIC FORECAST
(BILLIONS)
----------
$6
$4
$2
0 1999 2000 2001 2002 2003 2004 2005
<TABLE>
<CAPTION>
2000 2002 2004
---- ---- ----
<S> <C> <C> <C>
Forrester Research $1.4 $3.2 $4.3
Jupiter Communications $0.8 $2.3 $4.2
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 113
BLUEMATTER - DOWNLOADS
CONSUMER ADVANTAGES
- Legal
- Multimedia
- High Quality Music
- Links
- Easy to Find
- Quality, Security, Privacy
- Customer Care
- Multi-access
[VIVENDI UNIVERSAL LOGO]
<PAGE> 114
BLUEMATTER (Arrow Graphics) CONSUMER
Download PC
Locked Mobile
[BLUEMATTER Content Phone
GRAPHIC]
Subscription Set Top
Portals Kiosks
[VIVENDI UNIVERSAL LOGO]
<PAGE> 115
LOCKED CONTENT ON CD
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 116
THE MOTOWN STORE
Music and Associated
Content
[CD LOGO]
[LOGO] Locked
on a CD
[VIVENDI UNIVERSAL LOGO]
<PAGE> 117
BLUEMATTER - LOCKED CONTENT
Consumer Advantages
- All of the benefits of downloads
- Plus greater:
- Convenience
- Speed
[VIVENDI UNIVERSAL LOGO]
<PAGE> 118
BROADBAND
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 119
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 120
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 121
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 122
FARMCLUB.COM
#1 Record Label
#2 TV Program
#3 Web Community
[VIVENDI UNIVERSAL LOGO]
<PAGE> 123
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 124
[GRAPHIC] [GRAPHIC]
Limp Bizkit 98(DEGREES)
[GRAPHIC] [GRAPHIC]
Eminem Dr. Dre
[VIVENDI UNIVERSAL LOGO]
<PAGE> 125
US DIGITAL MUSIC MARKET
Jupiter Projection - 2005
[PIE CHART]
a la carte Subscription
Downloads (65%)
(35%)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 126
STREAMING BASED SUBSCRIPTIONS
Consumer Advantages
- Most of the benefits of downloads
- Plus greater:
- Convenience
- Variety
- Speed
- Simplicity
[VIVENDI UNIVERSAL LOGO]
<PAGE> 127
[SONY LOGO] [UNIVERSAL LOGO]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 128
DISINTERMEDIATION
"Music Companies Will Become
More Relevant to Artists"
Today + Tomorrow
----- --------
Support Marketing
A & R New Business
Marketing Security
[VIVENDI UNIVERSAL LOGO]
<PAGE> 129
MARGIN EROSION
"MARGINS WILL REMAIN HEALTHY"
Lower Costs
Pricing Direct to Consumers
Value Added Offerings
[VIVENDI UNIVERSAL LOGO]
<PAGE> 130
DIGITAL MUSIC OPPORTUNITIES
Wireless
Products
PCs Services Artists Portals TVs
Channels
Music
PDAs Kiosks
[VIVENDI UNIVERSAL LOGO]
<PAGE> 131
MERGER BENEFITS FOR UMG
- New business development
- Greater speed
- Lower cost
- Higher effectiveness
[VIVENDI UNIVERSAL LOGO]
<PAGE> 132
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]
<PAGE> 133
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]
<PAGE> 134
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]
<PAGE> 135
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]
<PAGE> 136
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]
<PAGE> 137
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]
<PAGE> 138
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]
<PAGE> 139
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]
<PAGE> 140
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]
<PAGE> 141
SELECTED MERGER SYNERGIES IN MUSIC - V
- Internet Investment Program
- Global Brand Management
- Multi-content Kiosks
- Music and:
Education
Flipside
Sports
[VIVENDI UNIVERSAL LOGO]
<PAGE> 142
LARRY KENSWIL
President, eLabs
Universal Music Group
[VIVENDI UNIVERSAL LOGO]
<PAGE> 143
JIMMY IOVINE
Co-Chairman, Interscope Geffen A&M
Chairman & CEO, Farmclub.com
[VIVENDI UNIVERSAL LOGO]
<PAGE> 144
[VIVENDI UNIVERSAL LOGO]
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 145
[VIVENDI UNIVERSAL GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 146
ZACH HOROWITZ
President and
Chief Operating Officer
Universal Music Group
[VIVENDI UNIVERSAL LOGO]
<PAGE> 147
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]
<PAGE> 148
MUSIC IS A VERY
GOOD BUSINESS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 149
[CD GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 150
[CD GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 151
[CD GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 152
MUSIC BUSINESS
Building Blocks of a Strong Business
[VIVENDI UNIVERSAL LOGO]
<PAGE> 153
MUSIC BUSINESS
Building Blocks of a Strong Business
- Long term contracts
[VIVENDI UNIVERSAL LOGO]
<PAGE> 154
MUSIC BUSINESS
Building Blocks of a Strong Business
- Long term contracts
- Built in sequel rights
[VIVENDI UNIVERSAL LOGO]
<PAGE> 155
[SHANIA TWAIN GRAPHIC] [SHANIA TWAIN GRAPHIC] [SHANIA TWAIN GRAPHIC]
THIRD SECOND FIRST
[VIVENDI UNIVERSAL LOGO]
<PAGE> 156
MUSIC BUSINESS
Building Blocks of a Strong Business
- Long term contracts
- Built in sequel rights
- Multiple opportunities to break an album
[VIVENDI UNIVERSAL LOGO]
<PAGE> 157
MUSIC BUSINESS
Building Blocks of a Strong Business
- Long term contracts
- Built in sequel rights
- Multiple opportunities to break an album
- Cross-recoupment of album
[VIVENDI UNIVERSAL LOGO]
<PAGE> 158
MUSIC BUSINESS
Building Blocks of a Strong Business
- Long term contracts
- Built in sequel rights
- Multiple opportunities to break an album
- Cross-recoupment of album
- Attractive "risk profile"
- Well-diversified portfolio
- Attractive margins
[VIVENDI UNIVERSAL LOGO]
<PAGE> 159
ATTRACTIVE MARGINS
[CD CHART] $4.00
[VIVENDI UNIVERSAL LOGO]
<PAGE> 160
[AQUA GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 161
[REPORT GRAPHIC]
[BAR CHART]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 162
MUSIC BUSINESS
Building Blocks of a Strong Business
- Long term contracts
- Built in sequel rights
- Multiple opportunities to break an album
- Cross-recoupment of album
- Attractive "risk profile"
- Well-diversified portfolio
- Attractive margins
- Own the masters
[VIVENDI UNIVERSAL LOGO]
<PAGE> 163
[BOB MARLEY CDs GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 164
BOB MARLEY
Annual Catalog Sales - 1992 to Present
(Units in Millions)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3.7
3.1
2.9
2.6
2.4
2.2 2.2
2.0 2.0
1992 1993 1994 1995 1996 1997 1998 1999 2000
YTD
</TABLE>
Average ongoing sales of catalog every 12 months of 2.5M
units yielding $10.0M of annual contribution
*Source: Soundscan and UMG SPBD Analysis
[VIVENDI UNIVERSAL LOGO]
<PAGE> 165
[VARIOUS ARTISTS GRAPHIC]
<PAGE> 166
CATALOG
International Bestsellers
-------------------------
ABBA (Sweden)
Bee Gees (UK)
Bob Marley & The Wailers (UK)
Johnny Hallyday (France)
Elton John (UK)
Luciano Pavarotti (Italy)
U2 (UK)
Rod Stewart (UK)
Caetano Veloso (Brazil)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 167
[UNIVERSAL LOGO]
UNIVERSAL MUSIC
PUBLISHING GROUP
[VIVENDI UNIVERSAL LOGO]
<PAGE> 168
MUSIC PUBLISHING
Publisher Earns Revenue from
Every Use of Song
Records Concerts Commercials
Radio Restaurants Sheet Music
TV Film Web
[VIVENDI UNIVERSAL LOGO]
<PAGE> 169
MUSIC PUBLISHING
Publisher Earns Revenue from
Every Use of Song
[COW GRAPHIC]
"Vache a Lait"
Records Concerts Commercials
Radio Restaurants Sheet Music
TV Film Web
[VIVENDI UNIVERSAL LOGO]
<PAGE> 170
UNIVERSAL MUSIC PUBLISHING GROUP
Evergreens
"I Will Survive"
"Strangers in the Night"
"Candle in the Wind"
"California Dreamin"
"Do Wah Diddy Diddy"
"Boogie Woogie Bugle Boy"
"Macarthur Park"
"The Girl From Ipanema"
"Don't Cry For Me Argentina"
<TABLE>
<CAPTION>
Evergreens of Tomorrow
<S> <C>
No Doubt: "Don't Speak"
Alanis Morissette: "You Ought to Know"
Eric Clapton: "Change The World"
Shania Twain: "You're Still The One"
Ricky Martin: "Livin La Vida Loca"
Michael Jackson: "Man in the Mirror"
Celine Dion: "To Love You More"
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 171
MUSIC PUBLISHING PROFITS
"I Will Survive"
($in millions)
<TABLE>
<CAPTION>
10 Year
Earnings
1999 Summary
---------- ----------
<S> <C> <C>
Mechanical $ 519,437 $2,850,515
Performance $ 272,331 $1,340,460
Synchronization $ 108,853 $1,042,424
Other $ 17,743 $ 74,694
(Print, Karaoke, Rental)
---------- ----------
Total $ 918,364 $5,308,093
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 172
MUSIC BUSINESS
"Best of all Possible Businesses"
- Uses of music are increasing
- Universal Music Group is uniquely positioned
- Talented executive team
- Outstanding catalog
- Incomparable artists
- Long-term contracts
- Market leadership
[VIVENDI UNIVERSAL LOGO]
<PAGE> 173
[UNIVERSAL LOGO]
UNIVERSAL MUSIC GROUP
[VIVENDI UNIVERSAL LOGO]
<PAGE> 174
[UNIVERSAL LOGO]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 175
[UNIVERSAL LOGO]
UNIVERSAL MUSIC
PUBLISHING GROUP
[VIVENDI UNIVERSAL LOGO]
# # #
