Filed by Vivendi
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: The Seagram Company Ltd.
Commission File No. 1-2275
and
Subject Company: Canal Plus S.A.
Commission File No. 82-2270
October 12, 2000
[CEGETEL LOGO]
PHILIPPE GERMOND
FRANK ESSER
TELECOMMUNICATIONS
DIVISIONS
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL 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.
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
AGENDA
- Introductory remarks
- Cegetel:
Current positioning and 2000 performance
- Vivendi Telecom International
- Synergy opportunities
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
CEGETEL TODAY
CEGETEL IS THE FIRST PRIVATE TELECOM OPERATOR IN
FRANCE WITH OVER 11M CUSTOMERS (MID OCTOBER):
- 9M mobile users (GSM deregulated since 1994)
- 2.2M fixed lines (deregulated since 1998)
- 11 000 data sites and 32 000 voice sites for the corporate market
- First alternative long distance carrier in France:
60M min/day
- ~ 300 owned distribution outlets in city centers and malls by year-end
2000
THE SKILLS AND KNOW-HOW OF 8 200 EMPLOYEES
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
EVOLUTION OF THE
FRENCH TELECOMMUNICATION MARKET
- The French telecommunication market should show a CAGR of 10% between
1999 and 2002
- Mobile and data will be the most dynamic sectors
[BAR CHART]
<TABLE>
<CAPTION>
1999 2002
---- ----
<S> <C> <C> <C>
Mobile 8 Bn(euro) 13 Bn(euro) +59%
Data 4 Bn(euro) 6 Bn(euro) +69%
Fixed voice - local 9 Bn(euro) 10 Bn(euro) +10%
Fixed voice - LD 5 Bn(euro) 5 Bn(euro)
Payphones 1 Bn(euro) 1 Bn(euro)
</TABLE>
Source: HSBC Securities
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
A GROWTH STORY
[BAR CHART]
EVOLUTION OF CUSTOMERS BASES
<TABLE>
<CAPTION>
1998 1999 2000 (e)
--------- --------- ----------
<S> <C> <C> <C>
SFR 4,201,005 7,223,803 10,062,000
le 7 650,821 1,502,885 1,997,666
--------- --------- ----------
4,853,824 8,728,687 12,059,666
</TABLE>
[BAR CHART]
CUMULATIVE CAPEX IN M(euro) (1)
<TABLE>
<CAPTION>
1998 1999 2000(e)
---- ---- -------
<S> <C> <C> <C>
4,052 4,623 5,548
</TABLE>
[BAR CHART]
EBITDA IN M(euro) (2)
<TABLE>
<CAPTION>
1998 1999 2000 (e)
---- ---- --------
<S> <C> <C> <C>
279 502 ~1,300
</TABLE>
(1) Including TD investments
(2) Mobile acquisition costs expensed as of 01.01.2000 to comply with US GAAP
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
MISSION STATEMENT
- Be the Number One private global telecommunication operator in France
- Be best positioned for the broadband revolution:
- Mobile: first operator to achieve national GPRS (10 times GSM
speed for data on mobile) roll-out by year-end 2000
- Fixed: ADSL (fast Internet) aggressive implementation as early as
January 1st, 2001
- 25% of the French Telecommunication market by year 2003 (15 % by mid
2000)
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
STRONG OVERALL PERFORMANCE
- Sustained revenue and EBITDA growth (35%+ CAGR 2000-2002)
- Aggregated fixed activities at EBITDA breakeven by year-end 2000
- Positive Group Net Income achieved at mid-year 2000
- Mobile activities at Free Cash Flow breakeven by year-end 2000
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
COMPETITIVE POSITION
- Critical network assets:
- # 1 Cellular network (1999 French Regulator Survey)
- National long distance backbone with 360 local switches
interconnected
- Aggressive roll-out of broadband access for mobile (GPRS) and
fixed (ADSL)
- A strategy of differentiation:
- Brand awareness
- Innovation through services
- Customer care
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
CEGETEL:
CURRENT POSITIONNING
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
MOBILE ACTIVITIES
[SFR LOGO]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
SFR TODAY
- 98% of the population covered
- 10M SFR customers expected by year-end
- 40% penetration rate mid 2000 70% expected in 2003
- 4th leading country in Europe in number of users, but second least
penetrated in Europe
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
SFR: THE MOST VALUABLE CUSTOMERS
AVERAGE REVENUE PER USER S1-2000
[BAR CHART]
<TABLE>
<CAPTION>
ARPU
----
<S> <C>
SFR 44 (euros)
Itineris 40 (euros)
Bouygues 38 (euros) Source: Operators
</TABLE>
ARPU Evolution
[LINE CHART]
<TABLE>
<CAPTION>
Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Average 100 96 102 99 98 104 99 95 96 87 84 85 82 78
Subscribers 100 97 102 100 99 105 102 98 101 93 92 93 94 92
Prepaid 100 90 105 100 103 112 101 96 89 80 74 81 73 65
</TABLE>
<TABLE>
<CAPTION>
Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Average 83 78 82 82 81 79 81
Subscribers 97 91 96 96 94 92 96
Prepaid 75 68 74 76 77 76 72
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
PREPARING FOR MOBILE INTERNET
- SMS are now being used by 30% of all our prepaid customers and 24% of
our postpaid base, averaging 20 messages per customer per month
- Thanks to new offers (SMS kiosk, SMS chat, etc) SMS and services should
represent 10% of SFR revenues in 2001
[BAR CHART]
<TABLE>
<CAPTION>
BILLABLE SMS PER MONTH
DEC-99 JUL-00 DEC-00 (e)
------ ------ ----------
<S> <C> <C>
19 MILLION 45 MILLION 60 MILLION
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
MANAGED REVENUES
- Reduction of churn by 50% since January 2000
[LINE CHART]
<TABLE>
<CAPTION>
Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3.21% 2.92% 2.63% 2.34% 2.07% 2.08% 2.09% 2.11% 2.21% 2.31% 2.83% 3.35% 2.97% 2.22%
</TABLE>
<TABLE>
<CAPTION>
Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
2.08% 1.84% 1.72% 1.53% 1.32% 1.60%
</TABLE>
- A controlled decrease in market share (gross sales)
[LINE CHART]
<TABLE>
<CAPTION>
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total 41% 39% 37% 35% 34% 38% 36% 35% 35% 37% 34% 35% 42% 34%
Subscribers 44% 42% 40% 40% 38% 39% 41% 38% 35% 32% 34% 46% 49% 34%
Prepaid 31% 32% 30% 26% 27% 35% 30% 31% 35% 42% 33% 28% 36% 35%
</TABLE>
<TABLE>
<CAPTION>
MAR-00 APR-00 MAY-00 JUN-00 JUL-00 AUG-00
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Total 35% 35% 36% 32% 29% 31%
Subscribers 36% 37% 38% 35% 28% 29%
Prepaid 33% 34% 35% 29% 31% 32%
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
COSTS ARE UNDER CONTROL
- Decrease in subsidies and dealers commissions vs H2 1999 but
acquisition costs remain high
[LINE CHART]
<TABLE>
<CAPTION>
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Average 100 115 110 98 125 136 111 176 152 137 134 139 148 98
Subscribers 100 118 111 95 126 136 123 184 177 157 166 172 181 120
Prepaid 100 116 128 139 178 231 127 297 203 236 199 203 167 148
</TABLE>
<TABLE>
<CAPTION>
MAR-00 APR-00 MAY-00 JUN-00 JUL-00 AUG-00 SEP-00 OCT-00 NOV-00 DEC-00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Average 126 117 105 123 96 101 104 101 99 79
Subscribers 152 145 131 145 125 140 135 127 130 111
Prepaid 148 148 130 168 122 126 120 125 133 105
</TABLE>
- Other operating costs under control and decrease in Unit costs
(technical, IT, customer care, structure), faster than ARPU
[LINE CHART]
<TABLE>
<CAPTION>
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00 MAR-00 APR-00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
100 93 90 95 95 99 93 96 88 84 82 71 72 71 75 77
</TABLE>
<TABLE>
<CAPTION>
MAY-00 JUN-00 JUL-00 AUG-00 SEP-00
------ ------ ------ ------ ------
<S> <C> <C> <C> <C>
77 67 77 71 76
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
SFR SOUND FINANCIALS
<TABLE>
<CAPTION>
Full year
---------
99
pro-forma 00
(1) (e) Variance
--- --- --------
<S> <C> <C> <C>
Customers (M) 7.20 10.00 +38%
Revenues (Bn(euro)) 3.53 5.10 +44%
Ebitda (Bn(euro)) 0.64 1.35 x2
Cumulative Capex/ customer ((euro)) 480(2) 410 -15%
</TABLE>
------------------
(1) Mobile acquisition costs expensed as of 01.01.2000 according to US GAAP
(2) 690 (euro) in 1998
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
SFR, THE TECHNOLOGY LEADER
<TABLE>
BROADBAND
<S> <C>
1999 SMS
2000 WAP
2001 GPRS
2002 UMTS
2003
</TABLE>
Mid 1999 #1 to launch WAP phones
Mid 2000 #1 to launch Vizzavi In Europe
End 2000 #1 national GPRS coverage
2001 Ready for UMTS license
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
LEVERAGE ON GLOBAL EXCELLENCE
SFR is a local operator
- National network
- National customer care
but can leverage the experience and assets of international partners
- Music, films and recreation
- European WAP portal
- Global purchasing program
- International services
[EMBLEM GRAPHICS]
BEST POSITIONED FOR MULTIMEDIA
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
FIXED ACTIVITIES
[7 GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
FINANCIAL PERFORMANCE (1)
- Strong progression in revenues, despite fierce competition on voice
tariffs, due to:
- Sharp progress of data: +71% in revenues in 2000
- Increase in monthly volume: +80% since the beginning of year
2000
[LINE CHART]
CUMULATED MONTHLY TRAFFIC
<TABLE>
<CAPTION>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
--- --- --- --- --- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 -- 4 23 66 131 236 371 519 731 1,000 1,301 1,638
1999 374 730 1,171 1,597 2,026 2,512 3,002 3,444 3,982 4,539 5,164 5,897
2000 903 1,833 2,983 4,128 5,436 6,862 8,379 9,775 11,383
</TABLE>
[LINE CHART]
EVOLUTION OF RESIDENTIAL TARIFFS
<TABLE>
<CAPTION>
JAN-99 FEB-99 MAR-99 APR-99 MAY-99 JUN-99 JUL-99 AUG-99 SEP-99 OCT-99 NOV-99 DEC-99 JAN-00 FEB-00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
National 0.52 0.54 0.49 0.49 0.47 0.44 0.44 0.44 0.44 0.43 0.39 0.39 0.37 0.38
International 1.78 1.79 1.58 1.58 1.57 1.56 1.59 1.60 1.57 1.55 1.47 1.48 1.44 1.38
</TABLE>
<TABLE>
<CAPTION>
MAR-00 APR-00 MAY-00 JUN-00 JUL-00 AUG-00
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
National 0.38 0.35 0.32 0.32 0.33 0.33 -37%
International 1.37 1.38 1.37 1.38 1.40 1.43 -20%
</TABLE>
- Cost control and improved gross margin
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
FINANCIAL PERFORMANCE (2)
- The first alternative operator to report breakeven Ebitda only after
2.5 years
<TABLE>
<CAPTION>
Full year
---------
((euro)million) 99 00(e) Variance
--------------- -- ----- --------
<S> <C> <C> <C>
Revenues 334 465 +40%
Ebitda (1) (107) > 0 NM
Capex 134 145 11
</TABLE>
(1) including 100 % of network infrastructure subsidiary Telecom
Developpement
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
STRONG COMMERCIAL ACHIEVEMENTS
IN THE ADDRESSABLE MARKET
- ~50% residential market share among private competitors (Source
Secodip, 06/00)
- ~65% professional market share among private competitors (Source
Datanova, 06/00)
- 2.5 M lines by year-end 2000
- 81% of spontaneous brand awareness (Source Millward Brown - May 2000)
- >70% of preselection on new customers
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
THE #1 ALTERNATIVE BACKBONE
BACKBONE STATUS BY YEAR-END 2000
[MAP GRAPHIC]
- Cables: 12 000 km
- Fibers: 264 000 km
- ADM: 2600
(Add Drop Multiplexer)
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
CEGETEL, THE BROADBAND OPERATOR (1)
- Status :
- Rapid roll out of ADSL services as of Q1 2001 for residentials
and business customers
- Pending technical and commercial discussions with FT:
co-localisation of equipment, interconnection tariffs, ...
- Assets:
- TD network capillarity (360 FT local switches already
interconnected)
- Know-how: tested live in Monaco Telecom [UNIVERSAL LOGO]
- Vivendi Universal content (games, video, music,...)
[CANAL+ LOGO]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
CEGETEL, THE BROADBAND OPERATOR (2)
- Financial target : EBITDA positive after 3 years
- Cegetel offering :
- Competitive pricing versus Cable TV and France Telecom
- Roadmap of services:
[VIZZAV LOGO] - SHORT TERM: fast Internet + streaming
(Vizzavi as default portal)
[CANAL+ LOGO] - MEDIUM TERM: video on demand services + TV
relying on Vivendi Universal assets, voice
over DSL
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETAL LOGO]
STRATEGY: FOCUS ON INTERNET
- Cegetel / TD currently carries 50% of the French ISPs traffic
(excluding Wanadoo)
- Build an IP network in order to :
- Use convergence for fixed and mobile networks
- Address fast growing internet traffic
- Offer value added services in cooperation with Vivendi Net
(web hosting, e-meeting,...)
- Develop wholesale offer for ISPs, virtual ISPs
- Address retail ISP for the broadband market, in partnership
with Vizzavi for content aggregation and delivery
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
CEGETEL GROUP 2000
PERFORMANCE
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
GROUP KEY FINANCIALS (1)
IMPROVED GROUP ECONOMICS
NOTE: MOBILE ACQUISITION COSTS TOTALLY EXPENSED AS OF 1.1.00 TO COMPLY WITH US
GAAP
<TABLE>
<CAPTION>
FIRST HALF FULL YEAR 2000-2002 CAGR
---------------------------------------- ----------------------------------------- --------------
H1 99 99 00
((EURO)BN) H1 00 VARIANCE VARIANCE
PRO-FORMA PRO-FORMA EST.
---------------------------------------- ----------------------------------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues 1,85 2,40 + 28 % 3,91 5,60 + 45 % ~20%
Ebitda 0,33 0,57 + 73 % 0,50 1,30 x 2,5 ~35%
Ebit 0,07 0,25 x 3,6 (0,04) 0,50 n.m. ~50%
Capex 0,40 0,40 _ 1,10 1,20 + 10% ~20%*
</TABLE>
* Including UMTS, ADSL
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
GROUP KEY FINANCIALS (2)
BASIC ASSUMPTIONS 2000-2002
- Mobile:
- Penetration rate 65%
- Market share 33%
- Mix prepaid / postpaid 70% / 30%
- Average Revenue Per User evolution (CAGR) -18%
- Average Customer Acquisition Cost (CAGR)(1) -25%
- Fixed:
- Access to voice local traffic as of 2002 and
strong development of fixed-to-mobile
- Decrease in voice sales price -20%
- Improvement of data gross margin due to
decrease in access leased line costs
(1) Unit decrease+mix
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
GROUP KEY FINANCIALS (3)
SENSITIVITY ANALYSIS
<TABLE>
<CAPTION>
PARAMETER EBIT IMPACT IN 2001
--------- -------------------
<S> <C>
- +/- 1 pt in churn rate [arrow graphic] +/- 12 M(euro)
- +/- 10(euro) in Customer
Acquisition Cost [arrow graphic] +/- 50 M(euro)
- +/- 1(euro)in Average
Revenue Per User [arrow graphic] +/- 100 M(euro)
- 1% decrease in
incoming revenues [arrow graphic] - 5 M(euro)
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
GROUP KEY FINANCIALS (4)
- Sound financial structure...
<TABLE>
<CAPTION>
((EURO)BN) DEC. 99 JUNE 00 DEC 00
PRO-FORMA EST.
---------- ------- ------- ------
<S> <C> <C> <C>
NET FINANCIAL DEBT 1,27 1,48 1,89
TOTAL SHAREHOLDERS' EQUITY 2,21 2,26 2,35
</TABLE>
- ... should allow for financing UMTS with a maximum 1/1 debt-to-equity ratio
at the peak of end 2002
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
VIVENDI TELECOM
INTERNATIONAL
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
VIVENDI GROUP INTERNATIONAL OPERATIONS
- Vivendi Telecom International (100% subsidiary of Vivendi)
- Targeted strategy in both fixed and mobile broadband
- Focus on Europe and Africa
- 3 main properties:
- Spain : 4th mobile operator (UMTS license), # 1 shareholder
- Eastern Europe : Hungary # 2 fixed operator ; Poland : leader in both
mobile and fixed activities
- Monaco Telecom : Incumbent Operator
- Expertise based upon Cegetel professional skills and exchange of experience
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
GROUP INTERNATIONAL PROPERTIES
<TABLE>
<CAPTION>
FIXED GROUP SUBSCRIBERS LICENCE NET SALES
TELEPHONY OPERATOR INTEREST JUNE 2000 SINCE 1999
--------- -------- -------- --------- ------- ---------
<S> <C> <C> <C> <C> <C>
HUNGARY VTH 100 % 500.000 1994 132 M(EURO)
POLAND BRESNAN 51,5 % 360.000 1997 -
MONACO MONACO TELECOM 51 % 35.000 1998 71 M(EURO)
MOBILE GROUP SUBSCRIBERS LICENCE NET SALES
TELEPHONY OPERATOR INTEREST JUNE 2000 SINCE 1999
--------- -------- -------- --------- ------- ---------
SPAIN XFERA 31,1 % (*) 2000 N/A
MONACO MONACO TELECOM 51 % 15.000 1998 15 M(EURO)
POLAND PTC / ERA 26,3 % 2.500.000 1996 590 M(EURO)
EGYPT MISRFONE 7 % 650.000 1998 160 M(EURO)
KENYA KENCELL 40 % 10.000(**) 2000 N/A
</TABLE>
(*) COMMERCIAL LAUNCH IN 2001
(**) COMMERCIAL LAUNCH IN AUGUST 2000
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
SYNERGIES
OPPORTUNITIES
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
SYNERGY OPPORTUNITIES
- Vivendi Universal, a fantastic opportunity to increase the value of Cegetel:
- The mobile phone will become the main music handset device in the next
two years
- Music and game contents are considered as key applications for vocal,
SMS and WAP services
- The Vivendi Universal brands (Canal+, Universal) and its products are
key levers to increase our penetration on specific targets as youngsters
- All synergies are in addition to Revenue and EBITDA forecasts
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
WIRELESS TECHNOLOGY
AND CUSTOMER BENEFITS
<TABLE>
<CAPTION>
GSM CSD GSM GPRS UMTS
------------ ----------- -----------
<S> <C> <C> <C>
CONNECTION TIME ~ 20 SECONDS < 2 seconds < 2 seconds
BIT RATE 9.6 KBPS IN DOWN LINK : UP TO 40 KBPS FROM 144
(ESTIMATED) TWO WAYS (BEFORE MARCH 2001) KBPS UP TO 1
DOWNLINK : UP TO 55 KBPS MBPS IN
(AFTER MARCH 2001) PACKETS MODE
UP LINK : 13.6 KBPS
PRICING AIR-TIME DATA VOLUME DATA VOLUME
NETWORK ACCESS CONNECTION PERMANENT PERMANENT
"ON DEMAND" CONNECTION CONNECTION
SERVICES VOICE AUDIO FILES
TEXT PICTURES
FAX GAMES ON/OFF LINE
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
MAIN VALUE CREATION LEVERS FOR CEGETEL (1)
- Increase stickiness by marketing actions targeting music customers and games
players :
- Addition of 1 month of lifetime for 10% of the customer base raises by
25 M(euro)the 2002 Ebitda
- Increase airtime and data usage for SFR. An increase of only 5% penetration
rate for vocal and SMS services will raise by 20 M(euro) the 2002 Ebitda
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[CEGETEL LOGO]
ACTION PLAN
- Special promotion on November 10 and 11 2000
- First co-branded operation between UMG and SFR with the musical<< Les
Dix Commandements>>
- 1 CD offered in each SFR kit or chance to win a week-end in Paris to
assist to the show
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- Christmas offer :
- Become a SFR subscriber and receive for 1 additional FRF the CD of the
musical <<Les Dix Commandements>>, Johnny Hallyday Live concert or other
UMG artists
- 600 points of sales
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ACTION PLAN
[UNIVERSAL GLOBE GRAPHIC]
- A choice of services based on the major artists of UMG
- Music greetings on your handset, or through Vizzavi (WAP and WEB)
- Ringtones : downloading specific ringtones such as the title <<Les Rois
du Monde >> N(degree)1 Top 50.
[FLIPSIDE.COM GRAPHIC]
- A choice of exclusive games on GPRS handsets:
- Chess games with Flipside, adventure and strategy games
- Airflow tariffs
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[CEGETEL LOGO]
ACTION PLAN
- Dec 2000 to Q1 2001 : Develop new GPRS functionalities
- Communities (chat, ..) : The first multi-access chat
- M-commerce of CD's (With a visual application)
- Downloads of music samples: ~2 minutes for the download of 3 minute of
CD quality music (64kb/s)
- Use Flipside as the preferred Games portal
- 2001 -2002
- Create a consumer loyalty program across Vivendi Universal Business
Units
- Cegetel as a burn partner
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MAIN VALUE CREATION LEVERS FOR CEGETEL (2)
- Improve SFR market share on specific segments leveraging Universal products
and brand :
- Increasing 1% of the market share on the total customer base raises by
100 M(euro)the 2002 Ebitda
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[CEGETEL LOGO]
ACTION PLAN
- 2001: global strategy of co-sponsored events such as Summer SFR Tour,
co-branded Cyber-Cafes in the main French cities
- End of S1 2001:
- A total range of music enhanced phone devices consistent with UMG codec
/ digital right management policy
- The mobile phone becomes a << walkphone >>, your personal co-branded
digital jukebox
- UMTS: SFR is best positioned to leverage Vivendi Universal brands in order
to address specific targets
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[CEGETEL LOGO]
CONCLUSION
- Cegetel well positioned on the French market:
- # 1 mobile private operator
- # 1 private long distance operator
- # 1 alternative national backbone
- Cegetel has strong 2000 financials:
- Revenues ~+45%
- EDITDA ~+150%
- Freee Cash Flow on Mobile Activities
- Steady 2000-2002 growth expected in revenues (20%) and Ebitda (35%)
- Cegetel is best prepared for future:
- Broadband access and convergence (ADSL,UMTS)
- Leverage on strong international partnerships
- Access to premium Vivendi Universal contents
BEST POSITIONED FOR MULTIMEDIA
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