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
JEAN MARIE MESSIER
EDGAR BRONFMAN JR
GROUP OVERVIEW
STRATEGY AND ORGANISATION
[VIVENDI UNIVERSAL LOGO]
<PAGE>
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>
OUR VISION
A GLOBAL COMPANY FOR THE DIGITAL AGE
Vivendi Universal will be the world's preferred creator and provider of
personalised information, entertainment and services to consumers anywhere, at
any time, and across all distribution platforms and devices.
[VIVENDI UNIVERSAL LOGO]
<PAGE>
1. THE BENEFITS OF DIGITAL CONVERGENCE
- THE CONVERGENCE IS CONSUMER-DRIVEN.
- Localized services
- Multi-accessibility
- Rich and personalized content
- Personalization must be easy
- THE MOVE IS TECHNOLOGY-ENABLED
- Broadband access channels to multiply
- Devices are mutating to match consumers' needs (portability,
storage,...)
- PREMIUM CONTENT IS ESSENTIAL
- Practical information for day-to-day life
- Entertainment content (music, film, games)
- Education
[VIVENDI UNIVERSAL LOGO]
<PAGE>
1. THE BENEFITS OF DIGITAL CONVERGENCE
- Vivendi Universal will have all the key drivers for value creation in the
global media world
<TABLE>
<CAPTION>
New Scale & Global Brands Bundling Vertical
Key revenue Scope footprint integration
driver streams
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Seagram X X X XX 0 0
Vivendi X-XX X-XX X X XX XX
Canal+ XX X-XX X XX X 0
-----------------------------------------------------------------------------------------------------
Vivendi
Universal XX XX XX XX XX XX
</TABLE>
0 = no or low X = average XX = good
- ...and growth capacities
[VIVENDI UNIVERSAL LOGO]
<PAGE>
1. THE BENEFITS OF DIGITAL CONVERGENCE
- VERTICAL INTEGRATION IS ESSENTIAL TO MAXIMIZE SHAREHOLDER VALUE:
- New businesses will be introduced to the market faster
- Ability to keep most of the margin of the value-chain within the group
- VERTICAL INTEGRATION DOES NOT MEAN EXCLUSIVITY:
- Content does not maximize its value if distribution channels are
limited and vice versa
- Premium content to contribute to differentiation through windowing
policies and early cooperation
- A CONSUMER CENTRIC CENTURY:
- Personalization
- Customization
- Localization
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH
VIVENDI UNIVERSAL
IS A GROWTH STORY
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / REVENUES
- Consolidated revenues from the communications
business to reach (euro)24.6bn in 2000
CONSOLIDATED BUSINESSES
- Music 6.6bn
- Publishing 3.5bn
- Filmed entertainment * 4.6bn
- Pay TV 4.0bn
- Telecoms 5.8bn
- TOTAL 24.6 bn(euro)
NON CONSOLIDATED BUSINESSES (FIGURES FOR 100%)
- Vizzavi (50%) na
- Recreation unconsolidated ** 1.2 bn
- USAi (43%) 4.6 bn
- Xfera (31.5%) na
- BSkyB (22.7%) 3.4 bn
* INCLUDES CONSOLIDATED RECREATION OPERATIONS
** 50% OF ORLANDO STUDIOS FLORIDA, 24% OF UNIVERSAL STUDIOS JAPAN,
37% OF PORT AVENTURA
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / SUSTAINED EBITDA GROWTH
- Consolidated EBITDA target for 2000 in excess of (euro)3.5bn for the
communications activities
CONSOLIDATED BUSINESSES
- Music 1.1bn
- Publishing 0.5bn
- Filmed entertainment * 0.3bn
- Pay TV 0.45bn
- Telecoms 1.3bn
- Internet (0.1)bn
- TOTAL (euro) 3.5 bn***
NON CONSOLIDATED BUSINESSES (CONSENSUS)
- Recreation affiliates ** 0.2bn
- USAi (43%) 0.8bn
- BSkyB (22.7%) 0.4bn
* INCLUDES CONSOLIDATED RECREATION OPERATIONS
** 50% OF ORLANDO STUDIOS FLORIDA, 24% OF UNIVERSAL STUDIOS JAPAN AND 37%
OF PORT AVENTURA
*** EXCLUDING CORPORATE OVERHEADS AND NON CORE (- (EURO) 0.3 BN)
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / GROWTH RATES
- TOTAL CONSOLIDATED
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
00 00 vs 99 00-02
------------------------------------------------------------------------------
<S> <C> <C> <C>
CONTENT
Sales 14.7 +14% +6 to 7%
EBITDA 1.9 > 50% +12%
------------------------------------------------------------------------------
ACCESS
Sales 9.8 +90% (greater than and
equal to) +15%
EBITDA 1.8 x 2,5 at Cegetel > +35%
& Canal+ included
------------------------------------------------------------------------------
SYNERGIES 640M(EURO)
Consolidated EBITDA by end 2002
------------------------------------------------------------------------------
TOTAL V.U. EXCLUDING
ENVIRONNEMENT
Sales 24.6 +35% +10%
EBITDA 3.2 More than doubled +35%
------------------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / CONTENT
CONTENT
CONSISTENT GROWTH,
CASH FLOW GENERATION
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / CONTENT
- MUSIC
- #1 WW, with strong global and local content
- Capitalize on new business opportunities:
- Digital downloads
- Subscription services
- Locked Content
- TV / set-top boxes
- Wireless
- Satellite Radio
- Internet Radio
- Pay -per-Play
- Kiosks
- Near term top line growth 6%, EBITDA growth 12% (2000-2002)
- Low risk / high FCF (-- 70% of EBITDA)
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / CONTENT
- PUBLISHING
- Focusing on growth markets with multiplatform applications
(education, healthcare, business information, local services)
- Positioned for the digital revolution (PC games, e-learning)
- Top line growth approx. 6%, EBITDA growth over 10% (2000-2002)
- FCF about 400 M(euro) per year
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / CONTENT
- FILM AND RECREATION
- EBITDA growth to benefit from Universal Pictures' ongoing turnaround
and successful opening of new theme parks
- Cap on film investments / risk management
- Significant expansion of library sales to new formats including DVD
and digital distribution
- FCF neutral
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / ACCESS
ACCESS
RAPID GROWTH, STRONG
EBITDA LEVERAGE
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / ACCESS
- TELECOMS
- A fixed cost industry
- Fast growing penetration rates
- 55% mid-year average mobile penetration in Europe,
- targeting > 70% in 2 years
- Leverage on EBITDA
- Significance of churn
- Top line growth near 20% p. y. (2000-2002)
- EBITDA growth over 35% p. y. (2000 / 2002)
- Financing of UMTS secured (France and Spain): no capital increase
at Cegetel; debt to equity ratio of Cegetel to remain below 1:1
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / ACCESS
- PAY TV
- Pan-European multiservice television provider
- Continuing growth from Canal+ business model replicated outside
France
- Costs are fixed => EBITDA leverage
- Digitalization creates additional leverage on Average Revenue per
User (ARPU)
- Sales expected up 10% for 2000-02
- EBITDA up > 35% per year (2000-02)
- Cash-flow consuming until 2002
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / AGGREGATION
AGGREGATION
STRONG ASSETS,
NEW BUSINESS MODELS
AND REVENUE STREAMS
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / AGGREGATION
- VIVENDI NET
- Leverage the internet value of VU assets
- Grow thematic portals (entertainment, education, information and
transaction)
- Grow and create enablers, capitalizing on the critical mass of
the Vivendi Universal network
- Incubate business models linked with Vivendi Universal business
and make Venture Capital investments to access technological
development
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / AGGREGATION
- VIZZAVI
- Our goal is to create the leading European portal
- differentiation from pure PC portal with seamless services
between mobile, PC and TV
- 80 M potential multiplatform subscribers (TV, mobile, PC)
- Vivendi Universal as preferred content supplier of Vizzavi
- 600 / 800 M(euro), our investment to win in this space
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH / VIVENDI UNIVERSAL'S ECONOMICS
- CONTENT:
-------
consistent growth + strong cash flow generation
- ACCESS:
------
rapid growth + fixed costs = strong EBITDA leverage
- AGGREGATION:
-----------
new business models and revenue streams based on Europe's #1
multi-access distribution platform and leading content supplier
+
- SYNERGIES: costs and revenues
---------
=
A UNIQUELY POSITIONED COMPANY WITH
EXTRAORDINARY GROWTH
[VIVENDI UNIVERSAL LOGO]
<PAGE>
2. FINANCIAL STRENGTH
- A DELEVERAGED, FCF GENERATIVE AND FLEXIBLE GROUP
- Vivendi Universal communication pro forma debt <(euro)2 bn after
Seagram's Spirits and Wine divestiture
- FCF above (euro)2 bn over the next 2 years (after restructuring
costs)
<PAGE>
3. SYNERGY
TARGETS
- CONSOLIDATED EBITDA IMPACT
<TABLE>
<CAPTION>
--------------------------------------------------------------
2002 2003
--------------------------------------------------------------
<S> <C> <C>
Costs (euro)420M (euro)420M
--------------------------------------------------------------
Revenues (euro)220M (greater than
or equal to) (euro)400M
--------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
3. SYNERGY
COST SYNERGIES ASSUMPTIONS [ ] IN MILLIONS
<TABLE>
<CAPTION>
ADDRESSABLE TARGET SAVINGS
COSTS 2002
<S> <C> <C>
FUNCTIONAL OVERHEADS
VIVENDI / SEAGRAM
CANAL+ / USG 2,000 160
DELAYERING
LOGISTICS 1,100 60
PURCHASING / PROCUREMENT 3,500 80
IT OPERATING EXPENSES 550 60
OTHER EXTERNAL CHARGES 30
+ SPIRITS' DIVESTITURE SAVINGS / NON ABSORBED SEAGRAM'S (30)
COSTS
+ NON RECURRING ITEMS AT VIVENDI 60
TOTAL EBITDA IMPACT 420
NON EBITDA RECURRING 50
INVESTMENT SAVINGS 80
TOTAL CASH FLOW IMPACT 550
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
3. SYNERGY/EXAMPLES
- MOBILE PHONE AND MUSIC
- Music-based services on mobile devices (e.g. lottery service,
mailbox personalization, ring tone services)
- Provide new distribution channels for UMG music content
- MUSIC AND VIZZAVI
- Vizzavi will offer specific vertical channels such as Games,
Music, Entertainment
- UMG has several e-music ventures + downloading programs
- Vizzavi can leverage UMG content to increase Vizzavi Music
Channel popularity (Increase loyalty and lower acquisition
costs for Vizzavi)
- THE VU ON-LINE LOYALTY PROGRAM : FLIPS
- Flips, the loyalty currency for the game portal flipside.com,
will be the loyalty program for VU websites
- Increase retention and traffic on VU sites
- Share technological know how and investments
- Extend all VU products as burn partners (theme parks
tickets, music CD, CD-rom, mobile handsets, free
minutes,...)
- Value creation to be measured both in EBITDA and
incremental market share.
[VIVENDI UNIVERSAL LOGO]
<PAGE>
3. SYNERGY
- UMG CD TO INCREASE VIZZAVI TRAFFIC
- UMG powerful distribution (200 M CDs sold in Europe last year).
Using CDs, the consumer will access Vizzavi portal customized
with special artist features (e.g. latest news on the artists,
exclusive tracks included)
- ACCELERATE USAi'S WEBSITE DEVELOPMENT IN EUROPE
- USAi has an amazing capacity to monetize traffic and could
extending its businesses to Europe through alliances with Vivendi
Universal
- ticket Master City Search / Scoot
- hotel reservation network / Vizzavi
[VIVENDI UNIVERSAL LOGO]
<PAGE>
PART 4
IMPLEMENTATION
VIVENDI UNIVERSAL AS A FULLY
INTEGRATED GROUP
[VIVENDI UNIVERSAL LOGO]
<PAGE>
4.1. ORGANIZATION
- A STRONG OPERATIONAL TEAM : JEAN-MARIE MESSIER, EDGAR BRONFMAN JR, ERIC
LICOYS AND PIERRE LESCURE
- TV and films : Pierre Lescure
- Music : Doug Morris
- Publishing : Agnes Touraine (CEO)
- Internet : Philippe Germond
- Telco : Frank Esser (CEO)
- USAi : Barry Diller as a close partner
- ERIC LICOYS BECOMES COO IN CHARGE OF IMPLEMENTING ALL COST AND REVENUE
SYNERGIES
- CRM AND CIO MANAGERS TO BE APPOINTED AT VIVENDI UNIVERSAL LEVEL
[VIVENDI UNIVERSAL LOGO]
<PAGE>
4.1. ORGANIZATION
STRONG TRACK RECORD IN VALUE CREATION IN MEDIA BUSINESSES:
- UNIVERSAL MUSIC: SUCCESSFUL INTEGRATION OF POLYGRAM
- Objective of $ 300 M savings in 3 years to be actually met in 2
years
- Turnaround in progress at Universal Pictures
- VIVENDI
- Havas
- Successful integration of Havas Interactive in California
- Strong profitability recovery: EBITDA margin grown from 4%
at time of merger early 1988 to 14% in 2000 (e).
- Cegetel
- Leading alternative operator in France, 5 years after
creation
- VivendiNet
- The only European media company with a coherent and
aggressive multi-access Internet strategy
- CANAL+: LEADER IN EUROPE
- USA NETWORKS
[VIVENDI UNIVERSAL LOGO]
<PAGE>
4.2. CORPORATE GOVERNANCE
- CORPORATE GOVERNANCE CHANGES
- Quarterly financial statements from January 1, 2001;
- Financial statements under US GAAP for full year 2001;
- Eliminating double voting rights;
- Eliminating resolutions allowing for capital increases during a
public offering;
- Reducing the period during which shares are locked up in custody
in order to vote at shareholders' meetings from five days to one
day;
- Making voting forms and explanatory notes available on the
group's financial internet site;
- A total of 8 non French directors
[VIVENDI UNIVERSAL LOGO]
<PAGE>
4.3. VIVENDI -UNIVERSAL: A UNIQUE ALLIANCE
- MARKETS
- Growth markets: content/access/aggregation
- Multi-access is key; mobility is now a consumer need.
- Vertical integration [arrow graphic] to keep margins within the group
[arrow graphic] for speed
- MANAGEMENT
- Integrated organization
- Strong value creation track record in the media industry
- Focused on growth and profitability targets
- Committed to implementation of synergies and innovation
- FINANCIAL STRENGTH
- Steady growth prospect:
top line = + 10% pa; EBITDA = +35% pa
- Strong cash flow generation
- Deleveraged balanced sheet
[VIVENDI UNIVERSAL LOGO]
<PAGE>
4.3. ROAD MAPS
- THE MERGER PROCESS
- Vivendi listed on NYSE: 12th September
- Approvals
- RECEIVED:
- French Audiovisual authorities (CSA)
- US and Canada Anti-Trust authorities
- PENDING:
- Industry Canada and Canadian Heritage
- European Commission (Anti-Trust)
- Closing expected by late November:
- DEPENDING ON TIMING OF SEC APPROVAL FOR PROXY DOCS
- Spirits and Wine divestiture: in process
[VIVENDI UNIVERSAL LOGO]
