<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 12, 2000
MATERIALS PRESENTED AT INVESTOR CONFERENCE IN PARIS ON OCTOBER 12, 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.
* * * * * * *
[CEGETEL LOGO]
PHILIPPE GERMOND
FRANK ESSER
TELECOMMUNICATIONS
DIVISIONS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 2
[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> 3
[CEGETEL LOGO]
AGENDA
- Introductory remarks
- Cegetel:
Current positioning and 2000 performance
- Vivendi Telecom International
- Synergy opportunities
[VIVENDI UNIVERSAL LOGO]
<PAGE> 4
[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> 5
[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> 6
[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> 7
[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> 8
[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> 9
[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> 10
[CEGETEL LOGO]
CEGETEL:
CURRENT POSITIONNING
[VIVENDI UNIVERSAL LOGO]
<PAGE> 11
[CEGETAL LOGO]
MOBILE ACTIVITIES
[SFR LOGO]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 12
[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> 13
[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> 14
[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> 15
[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> 16
[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> 17
[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> 18
[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> 19
[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> 20
[CEGETAL LOGO]
FIXED ACTIVITIES
[7 GRAPHIC]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 21
[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> 22
[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> 23
[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> 24
[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> 25
[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> 26
[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> 27
[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> 28
[CEGETEL LOGO]
CEGETEL GROUP 2000
PERFORMANCE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 29
[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> 30
[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> 31
[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> 32
[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> 33
[CEGETEL LOGO]
VIVENDI TELECOM
INTERNATIONAL
[VIVENDI UNIVERSAL LOGO]
<PAGE> 34
[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> 35
[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> 36
[CEGETEL LOGO]
SYNERGIES
OPPORTUNITIES
[VIVENDI UNIVERSAL LOGO]
<PAGE> 37
[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> 38
[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> 39
[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> 40
[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
[UNIVERSAL GLOBE GRAPHIC]
- 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
[VIVENDI UNIVERSAL LOGO]
<PAGE> 41
[CEGETEL LOGO]
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
[VIVENDI UNIVERSAL LOGO]
<PAGE> 42
[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
[VIVENDI UNIVERSAL LOGO]
<PAGE> 43
[CEGETEL LOGO]
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
[VIVENDI UNIVERSAL LOGO]
<PAGE> 44
[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
[VIVENDI UNIVERSAL LOGO]
<PAGE> 45
[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
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 46
GUILLAUME HANNEZO
FINANCIALS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 47
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> 48
HOW MANY SHARES?
SHARE COUNTS IN MILLIONS, AS AT 31ST AUGUST 2000
<TABLE>
<CAPTION>
SEAGRAM EXCHANGE RATIO
----------------------
0.7x 0.8x
----- -----
<S> <C> <C> <C>
TOTAL NUMBER OF SHARES OUTSTANDING ASSUMING ALL CANADIAN 1,154 1,198
SHAREHOLDERS ELECT FOR IMMEDIATE EXCHANGE
Less: treasury shares reserved for Canadian shareholders (97) (97)
Less: other treasury shares (61) (61)
----- -----
ECONOMIC NUMBER OF SHARES OUTSTANDING 996 1,041
Dilutive instruments
--------------------
Oceane January 1999(2) 18.4 18.4
Stock options (Vivendi, Canal+ and Seagram) 35.2 39.3
Warrants 8.9 8.9 (116.3 m / 40 x 3.05)
Oceane April 1999 16.2 16.2
Others Seagram (LYONs, ACEs) 11.8 13.5 (20.0 m ACEs units x 0.833)
Less: Shares bought on the market (treasury stock method)(1) (25.9) (29.0)
----- -----
FULLY DILUTED (TREASURY STOCK METHOD, EXCL. OCEANE
JANUARY 1999) 1,043 1,090 (Post IPO Vivendi Environnement)
</TABLE>
(1) Assumes that proceeds resulting from the exercise of stock options are
reinvested to purchase shares on the market at 100(euro) for Vivendi,
200(euro) for Canal+ and 70.2$ for Seagram
(2) Vivendi committed to cancel Oceane January 1999 (not included in fully
diluted number of shares)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 49
HOW WILL WE REPORT?
- Vivendi already listed on the NYSE. French to US GAAP reconciliation
provided
- Vivendi Universal will close quarterly accounts as of Q1 2001(1)
- Vivendi Universal to move toward full US GAAP reporting in FY 2001
- No more pooling Goodwill
- Strong increase in shareholder's equity (57 Bn(euro) under French GAAP +
US GAAP adjustment of 6 Bn(euro))
- Close to 37 bn(euro)(2) goodwill to amortize
(1) in 2000, comparable basis only for some subsidiaries; disclosure to be
determined
(2) under French GAAP, excluding Spirits and wines
[VIVENDI UNIVERSAL LOGO]
<PAGE> 50
VIVENDI UNIVERSAL 2000 - SCOPE OF CONSOLIDATION
Consolidated Assets (assumptions)
- Cegetel: 44% owned today + management control + option to buy 7.5% from
-------
Vodafone [2001 or 2002]
- Canal+: full consolidation, including Canal+ S.A. (Programming division)
------
- Havas: 100% owned
-----
- Music: 92% owned
-----
- Filmed entertainment: 92% owned
--------------------
- Recreation: 92% owned
----------
- Vivendi Environnement: 72% as of today
---------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 51
PROFORMA 2000 - SCOPE OF CONSOLIDATION
<TABLE>
<CAPTION>
Revenues CAGR EBITDA CAGR
Figures in billion euros Revenues 2000e EBITDA 2000e Objective Objective
2000-2002e 2000-2002e
-------------- -------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Publishing 3.5 0.5 6% Greater Than or Equal to 10%
Music 6.6 1.1 6% 12%
Telecom 5.8 1.3 18% Greater Than or Equal to 35%
Internet 0.03 (0.1) nm nm
Pay-TV 4.0 0.4 10% Greater Than 35%
Filmed Ent. & Recreation 4.6 0.3 7% Greater Than 10%
Holding 0.0 (0.3) nm nm
Revenues Synergies +1,000M(euro)(1) +220M(euro)(1)
Costs Synergies -- +440M(euro)(1)
------------------------ -------------- ------------ ----------------- ----------------
Total VU excluding VE 24.6 3.2 10% 35%
and non-core
Vivendi Environment(2) 25.6 3.5 8% 11-13%
</TABLE>
(1) In 2002, on a proportional basis
(2) Vivendi owns 250.6m of VE shares (72%)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 52
PROFORMA 2000 - SCOPE OF CONSOLIDATION
<TABLE>
<CAPTION>
Revenues CAGR EBITDA CAGR
Figures in billion euros Revenues 2000e EBITDA 2000e Objective Objective
2000-2002e 2000-2002e
-------------- ------------ ----------------- ----------------
<S> <C> <C> <C> <C>
Access 9.8 1.8 Greater Than 15% Greater Than 35%
Content 14.7 1.9 6 - 7% 12%
------------------------- -------------- ------------ ----------------- ----------------
Aggregation 0.03 (0.1) Greater Than 100% nm
Holding 0.0 (0.3) nm nm
Revenues synergies +1,000M(euro)(1) +220M(euro)(1)
Costs synergies - +440M(euro)(1)
------------------------- -------------- ------------ ----------------- ----------------
Total VU excluding VE 24.6 3.2 10% 35%
and non-core
Vivendi Environment(2) 25.6 3.5 8% 11-13%
</TABLE>
(1) In 2002, on a proportional basis
(2) Vivendi owns 250.6m of VE shares (72%)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 53
COST SYNERGIES ASSUMPTIONS
(euro) 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
--------------------------------------------------------------------------------------------
+ SSWG's divestiture savings / non absorbed Seagram's costs (30)
+ Non recurring items at Vivendi 60
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
TOTAL EBITDA IMPACT 420
Add: Non EBITDA recurring 50
Add: IT Savings 80
--------------
CASH FLOW IMPACT 550
--------------------------------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 54
REVENUES SYNERGIES ASSUMPTIONS
(euro) IN MILLIONS
- TOTAL IDENTIFIED SYNERGIES ONLY
<TABLE>
<CAPTION>
2002
----
<S> <C> <C>
CROSS - CONTENT COMBINATIONS 25
MUSIC CEGETEL MOBILE SERVICES 30
OTHER MUSIC PROJECTS 45
LOYALTY PROGRAMS 15
CROSS - PROMOTIONS 15
CANAL+ / USG 25
GAMES SYNERGIES 15
ALL OTHER 50
----------------------------------------------------------
Greater Than or Equal to 400
TOTAL EBITDA 220------>
in 2003
----------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 55
NOT TO MENTION MACRO-BENEFITS
<TABLE>
<CAPTION>
---------------------------------- -----------------------------------------
KEY LEVERS SENSITIVITIES
---------------------------------- -----------------------------------------
<S> <C> <C>
1. Reduction of SFR's acquisition ---> 5% reduction --> EBITDA 2002e +50M(euro)
costs
2. Reduction of SFR's churn rate ---> 1% reduction --> EBITDA 2002e +12M(euro)
3. Increase of UMG market share in ---> 1% increase --> EBITDA 2002e + 25M(euro)
Europe
4. Earlier adoption of Vizzavi ---> 1% additional adoption --> 1 Mio
additional active users
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 56
VIVENDI UNIVERSAL - NON CONSOLIDATED PROFORMA
- 50% OF VIZZAVI, PAN-EUROPEAN MULTI-ACCESS PORTAL WITH 80M POTENTIAL
SUBSCRIBER BASE
- 43% OF USAI: (313.8 M SHARES) THROUGH 92%-OWNED UNIVERSAL, A DIVERSIFIED
MEDIA AND E-COMMERCE COMPANY EXPLOITING THE CONVERGENCE OF THE INTERNET VIA
INFORMATION, ENTERTAINMENT AND DIRECT SELLING
- Profitable internet activities
----------
- Current share price: $20
- Analysts' price objective (consensus): $30 (+50%)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 57
VIVENDI UNIVERSAL - NON CONSOLIDATED PROFORMA
- 22.7% OF BSKYB (420.1M SHARES)
- VIVENDI'S NON CONSOLIDATED TELCO INVESTMENTS: 31.5%(1) OF XFERA, ELEKTRIM
TELECOM (49%), MISRFONE (7%), MONACO TELECOM (51%), MOBILE LICENSE IN KENYA
(60%), BERLIKOMM (25.5%), WASHINGTON BALTIMORE (10%)
- VIVENDI'S NON CONSOLIDATED INTERNET INVESTMENTS: SCOOT UK (22.4%), SCOOT
EUROPE (50%), @VISO (50%), VIVENTURES I (30%), VIVENTURES II (40%)
- VIVENDI'S NON CORE ASSETS:
- listed: E 1.5 bn
- Sithe: E 1.8 bn, deconsolidated at year-end, remaining stake 30% with
put option around 0.5 BN(euro)
- 55% of AOL France
(1) In association with FCC
[VIVENDI UNIVERSAL LOGO]
<PAGE> 58
VIVENDI UNIVERSAL - NON CONSOLIDATED PROFORMA
- SEAGRAM'S ASSOCIATES: APPROXIMATE VALUE(2) $ 2.4BN
- Music division: GetMusic.com (50%)
- Filmed Entertainment: UCI (49%), Interplay (16%)
- Recreation: Universal Studios Florida (50%), Universal Studios Japan
(24%), Port Aventura (37%), Orlando Resorts ---> ADDITIONAL ATTRIBUTED
EBITDA TO REACH 200 M$ IN 2002
- Others: Dupont (10.6m shares, 1%)
- CANAL+'S ASSOCIATES: SOGECABLE (MARKET CAP.(EURO)3.5 BN, 2.7M SUBS., 20%),
MULTITHEMATIQUES (30%), POLAND (682,000 SUBS., 33%), EUROSPORT INT'L
(49.5%), EUROSPORT FRANCE (39% + 25% HAVAS IMAGES)
(2) Source: Prudential Securities
[VIVENDI UNIVERSAL LOGO]
<PAGE> 59
VIVENDI UNIVERSAL - NET DEBT AT JUNE 2000
PROFORMA DISPOSALS
<TABLE>
<CAPTION>
BN(EURO) EUROS
--------------
<S> <C> <C>
JUNE 2000 CONSOLIDATED 21.7
Listing VE (3.2)
Sithe's Disposal (1.8)
Dalkia/EDF (1.0)
Kinetics and others (1.2)
--------------
PROFORMA NET DEBT 14.5
of which Vivendi Environnement 13.3 (fixed-rate mostly)
--------------------------------------------------------------------------------------------------------------------
VIVENDI COMMUNICATION 1.2
of which:
OCEANE(1) (1.25%) 1.7 Bn(euro) net debt, nearly in the money (92.55(euro) per Vivendi share),
due Dec. 2003
BSkyB Exchangeables 1% 1.4 Bn(euro) cash proceeds, 1.1 Bn(euro) net debt, out of the money (1.445p
per BSkyB share) due July 2003
BSkyB Exchangeables ex-Pathe (3%) 0.2 Bn(euro) cash proceeds, due Nov. 2003
--------------------------------------------------------------------------------------------------------------------
</TABLE>
- SPIRITS AND WINE DIVISION DISPOSAL TO OFFSET SEAGRAM'S NET DEBT
[VIVENDI UNIVERSAL LOGO]
<PAGE> 60
TAXES
- VIVENDI: 100%-OWNED FRENCH PERIMETER
- losses carried forward of ca. 2.6 Bn(euro) by year-end, to be
off-set by ordinary profits and capital gains
- CEGETEL: LOSSES CARRIED FORWARD OF 1.2 BN(EURO) BY YEAR-END TO BE OFF-SET
AGAINST PROFITS
- VIVENDI ENVIRONNEMENT PAYS TAXES FROM 2000 ON
[VIVENDI UNIVERSAL LOGO]
<PAGE> 61
CASH FLOW DYNAMICS
(EXCLUDING UMTS AND DISPOSAL)
- CONSOLIDATED FREE CASH FLOW
--------------------------------------------------------------------------------
Excluding UMTS, Vizzavi and disposals, after dividend
<TABLE>
<S> <C> <C>
2001 (before restructuring costs): (euro)0.8bn
2002 (before restructuring costs): (euro)2.1bn
Restructuring costs (post tax) 2001: (euro)(0.4)bn
2002e 0
</TABLE>
--------------------------------------------------------------------------------
- NON-CONSOLIDATED : AT USAi, STRONG CASH FLOW GENERATION AND LEVERAGE CAPACITY
[VIVENDI UNIVERSAL LOGO]
<PAGE> 62
CASH FLOW DYNAMICS: UMTS AND ANNOUNCED
DISPOSALS (EURO) IN BILLION
<TABLE>
<CAPTION>
CUMULATIVE
2001-2002
----------
<S> <C>
- CEGETEL CAPEX, (EURO) IN BILLIONS
UMTS LICENCE COSTS(1)@100% (2.4)
UMTS ADDITIONAL CAPEX @100% (0.9)
- XFERA INVESTMENT(2) (0.4)
- VIZZAVI INVESTMENT (0.6)-(0.8)(3)
- ANNOUNCED DISPOSALS 4.0
</TABLE>
(1) 4.95 Bn(euro); down payments of 1.2 Bn(euro) in 2001 and 2002; remaining
equally split over 13 years resulting in yearly payment of 190M(euro)
(2) Vivendi share, assuming investment covered 50/50 debt and equity; License
conditions subject to re-negotiated
(3) Depending upon cash burn and IPO timing
[VIVENDI UNIVERSAL LOGO]
<PAGE> 63
CONCLUSION
- CONSISTENT EBITDA GROWTH
- VIVENDI UNIVERSAL COMMUNICATION DELEVERAGED
- SIGNIFICANT FCF GENERATION--> ABILITY TO FINANCE INTERNAL UMTS AND INTERNET
DEVELOPMENT
- ADDITIONAL ASSET ARBITRAGE CAPACITY TO FINANCE EXTERNAL GROWTH
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 64
EDGAR BRONFMAN JR
GROUP OVERVIEW
STRATEGY AND ORGANISATION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 65
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> 66
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> 67
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> 68
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> 69
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> 70
2. FINANCIAL STRENGTH
VIVENDI UNIVERSAL
IS A GROWTH STORY
[VIVENDI UNIVERSAL LOGO]
<PAGE> 71
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> 72
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> 73
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> 74
2. FINANCIAL STRENGTH / CONTENT
CONTENT
CONSISTENT GROWTH,
CASH FLOW GENERATION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 75
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> 76
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> 77
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> 78
2. FINANCIAL STRENGTH / ACCESS
ACCESS
RAPID GROWTH, STRONG
EBITDA LEVERAGE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 79
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> 80
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> 81
2. FINANCIAL STRENGTH / AGGREGATION
AGGREGATION
STRONG ASSETS,
NEW BUSINESS MODELS
AND REVENUE STREAMS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 82
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> 83
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> 84
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> 85
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> 86
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> 87
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> 88
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> 89
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> 90
PART 4
IMPLEMENTATION
VIVENDI UNIVERSAL AS A FULLY
INTEGRATED GROUP
[VIVENDI UNIVERSAL LOGO]
<PAGE> 91
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> 92
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> 93
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> 94
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> 95
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]
# # #
<PAGE> 96
[HAVAS LOGO] Eric Licoys
Agnes Touraine
Fabrice Fries
--------------------------------------------------------------------------------
THE PUBLISHING DIVISION OF
VIVENDI UNIVERSAL
--------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 97
[HAVAS 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> 98
[HAVAS LOGO] AGENDA
- 1 - HAVAS GROUP
- 2 - Synergies
-- Our contribution to Vivendi Universal Synergies
-- 3 Year Plan
- 3 - Business description and two examples of web Strategy
-- Education.com
-- Flipside
[VIVENDI UNIVERSAL LOGO]
<PAGE> 99
[HAVAS LOGO] OUR MISSION
TO BE A WORLDWIDE PUBLISHER
FOCUSING ON MARKETS WITH HIGH
MULTI-PLATFORM POTENTIAL
[VIVENDI UNIVERSAL LOGO]
<PAGE> 100
[HAVAS LOGO]
A LEADER IN
CONTENT IN 5
3 YEARS OF CORE MARKETS
REFOCUSING
--> DIVESTMENT: 2BN (EURO) 2000
A DIVERSIFIED --> ACQUISITION: 1.6BN (EURO)
MEDIA
CONGLOMERATE 1997-2000
BEFORE 1997
[VIVENDI UNIVERSAL LOGO]
<PAGE> 101
[HAVAS LOGO] KEY FIGURES (IN [ ] BILLION)
TOTAL SALES : 3.5 BN (EURO)
<TABLE>
<CAPTION>
1999 2000 E *
<S> <C> <C>
- NET SALES 3.3 3.5
Europe 2.6 2.6
North America 0.5 0.7
ROW 0.1 0.2
- EBITDA BEFORE
INTERNET INVESTMENT 0.42 0.5
12.7% 14.3%
- EMPLOYEES 21,000
</TABLE>
* current structure
[VIVENDI UNIVERSAL LOGO]
<PAGE> 102
[HAVAS LOGO]
HAVAS: A WORLDWIDE PUBLISHER
<TABLE>
<S> <C> <C>
EDUCATION BUSINESS &
SALES: 1,354 M(EURO) GENERAL
EBITDA: 180 M(EURO) INFORMATION
SALES: 902 M(EURO)
EBITDA: 145 M(EURO)
HEALTHCARE
GAMES INFORMATION LOCAL SERVICES
SALES: 401 M(EURO) SALES: 448 M(EURO) SALES: 365 M(EURO)
EBITDA: 80 M(EURO) EBITDA: 60 M(EURO) EBITDA: 35 M(EURO)
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 103
[HAVAS LOGO] OUR STRATEGIC DRIVERS
- CONSOLIDATING OUR LEADING POSITION THROUGH PROFITABLE GROWTH, OPERATIONAL
SYNERGIES, AND CONTINUOUS COST REDUCTION:
-- Focus on growth markets in leveraging intellectual property on a
global basis
-- Accelerate our internet developments
-- Leverage our successful integration and development of synergies
with recent major acquisitions (HII and MMI)
-- Benefit from the high level of synergies with Universal content
-- Increase cash generation
[VIVENDI UNIVERSAL LOGO]
<PAGE> 104
[HAVAS LOGO] A MULTI-PLATFORM STRATEGY
<TABLE>
<CAPTION>
[BOOK GRAPHIC] [CD GRAPHIC] [PHONE @ COMPUTER GRAPHIC]
PRINT MULTIMEDIA INTERNET
WAP PDA
----------------------------------------------------------------------------------
<S> <C> <C> <C>
-- PC Games na #1 ww Flipside.com
----------------------------------------------------------------------------------
-- Education #5 ww #1 ww Education.com
----------------------------------------------------------------------------------
-- Healthcare #3 ww #1 drug Atmedica.com
info.
----------------------------------------------------------------------------------
-- Business & Cadres Online
General Information #2 Europe ns 01.Net
----------------------------------------------------------------------------------
-- Local Services #1 France ns bonjour.fr
----------------------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 105
[HAVAS LOGO] INTERNET IS A LARGE GROWTH OPPORTUNITY
- To generate new revenue: new markets (elearning) and services
- To focus on internet business models which lead to profitability
- To drive print assets into electronic era with a << first mover >> attitude
- That's why we are focusing our investments on our core markets: no pure
financial investment but 116 m (euro) invested in 2000 in our core business
[VIVENDI UNIVERSAL LOGO]
<PAGE> 106
[HAVAS LOGO] AGENDA
- 1 - Havas Group
- 2 - SYNERGIES
-- Our contribution to Vivendi Universal Synergies
-- 3 Year Plan
- 3 - Business description and two examples of web Strategy
-- Education.com
-- Flipside
[VIVENDI UNIVERSAL LOGO]
<PAGE> 107
[HAVAS LOGO] OUR COMMITMENT FOR SYNERGIES
- Important and immediate fit between Management and Team due to common
culture and know-how
- Content combination & games synergies (2003)
- revenue :(euro) 200 - 250 m
- ebitda: (euro) 50-75m
- Pursue additional overhead reductions 10 m (euro)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 108
[HAVAS LOGO] LIST OF "TOP 10+" CONTENT COMBINATION
OPPORTUNITIES
<TABLE>
<CAPTION>
Proposed long term
Revenue synergy opportunities Impacted Business Lever(s) business owner
----------------------------- -------------------------- --------------
<S> <C> <C>
0 Cross promote 2-4 high priority VU Improved loyalty, brand USI Corp Mktg., then
content and product brands wareness and positioning future central org.
1 Multi-content Kiosk ~1,200 kiosks in 2003, UMG Global E
potentially a Vizzavi outlet
2 Self publish/license off-line games Incremental games revenue; UIS, Havas Interactive
Capture publishing revenues
3 Park Concierge Device ~300k(1) add. annual park Universal Recreation
visitors, cross-promotions,
yield management
4 Musical/theatrical and travelling Ticket sales, brand/portfolio USI, Uni. Recreation &
shows building Entertainment
5 Product Bundles/Partworks Incremental revenue and Havas Publishing
margin on product bundles
6 Music and Education Incremental sales & reach Havas Interactive
into "edutainment" space
7 TV shows/videos/soundtracks from Incremental rev., brand Uni Fam&Home Ent.,
games/education characters building Canal+
8 Packaging and Foreign Language Incremental revenue, brand Havas Publishing
Learning building
9 Enhance and promote Flipside Increase traffic by 8-11M Flipside
subscribers, increase
advertising revenue
10 Music and Sports Incremental product sales UM Intl, Canal+
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 109
[HAVAS LOGO] PRODUCT BUNDLES/PARTWORKS
- PRODUCT BUNDLES: generate incremental EBITDA by leveraging Havas and
Universal existing content, across categories
-- Bundle together CDs / books / games / videos to create value
added content extensions.
-- In 2003, 2 bundles / year, annual revenue of $ 2 m and EBITDA
margin of 70%.
- PARTWORKS: increase revenues and EBITDA in a worldwide market of $ 1.2 bn,
via new product ranges, leveraging reference know-how and existing retail
networks in Europe and Latin America
-- Create new continuing series of publications (15 - 70) on print +
CDs / DVDs / videos, using music, film and TV properties.
-- In 2003, one series at a time, annual revenue of $ 18 m and
EBITDA margin of 50%.
[VIVENDI UNIVERSAL LOGO]
<PAGE> 110
[HAVAS LOGO] BOOK PACKAGING
AND FOREIGN LANGUAGE LEARNING
- BOOK PACKAGING: generate incremental revenues by creating and selling books
to publishers around the world, using characters and content
-- set a new publishing house in the UK, leveraging existing
infrastructure and packaging know-how.
-- In 2003, 20 titles / year and annual revenue of $ 10 m, with 15%
EBITDA margin.
- FOREIGN LANGUAGE Learning opportunity: consolidate Foreign language
Learning position with new brand: Universal English
-- Launch a new concept of Foreign Language Products using movie, TV
and music clips.
-- Leverage Havas Know how on e-learning
-- In 2003, 15 products, annual revenue of $ 5 m and EBITDA margin
of 15%.
[VIVENDI UNIVERSAL LOGO]
<PAGE> 111
[HAVAS LOGO] MUSIC AND EDUCATION
- INCREASE INTERACTIVE EDUCATION WORLDWIDE MARKET SHARE BY EXTENDING
MULTIMEDIA PRODUCT RANGES.
-- Launch in 2002 a new concept teaching music to teens
interactively. It will use famous Universal artists and labels
and popular Havas education characters (eg learn music and rythm
with Jumpstart, 6 skus).
-- In 2003, 30 products, annual revenue of $ 35 m and EBITDA margin
of 15%.
[VIVENDI UNIVERSAL LOGO]
<PAGE> 112
[HAVAS LOGO] SELF-PUBLISH/LICENCE OFF-LINE GAMES
- Capture off-line game revenue and EBITDA synergies between Havas and
Universal, in development, licencing, publishing and distribution.
- Publish games that otherwise would not be made and self-publish games that
otherwise would have been outsourced (eg Spyro, Bruce Lee ...).
- In 2003, 8 titles, annual revenue of $ 50 m and EBITDA margin of 20%.
[VIVENDI UNIVERSAL LOGO]
<PAGE> 113
[HAVAS LOGO] HAVAS PLAN (IN [ ] BILLION)
(EXCLUDING SYNERGIES)
<TABLE>
<CAPTION>
2000 E AGR 00/02
------------------------------------------------------------------
<S> <C> <C>
NET SALES w/o internet 3.5 + 6%
------------------------------------------------------------------
EBITDA w/o internet 0.5 > 10%
------------------------------------------------------------------
PRE-TAX OPERATING FREE CASH-FLOW: > 0.4/year
------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 114
[HAVAS LOGO] OUR LEVERAGE:
WE ARE POSITIONED ON GROWTH MARKETS
- CONSUMER SPENDING ON KEY CONSUMER INTERESTS : education, healthcare, games
- ADVERTISING MARKETS : classified, jobs, pharmaceuticals, BtoB
[VIVENDI UNIVERSAL LOGO]
<PAGE> 115
[HAVAS LOGO] AGENDA
- 1 - Havas Group
- 2 - Synergies
-- Our contribution to Vivendi Universal Synergies
-- 3 Year Plan
- 3 - BUSINESS DESCRIPTION AND TWO EXAMPLES OF WEB STRATEGY
-- Education.com
-- Flipside
[VIVENDI UNIVERSAL LOGO]
<PAGE> 116
[HAVAS LOGO] HEALTHCARE: LEVERAGE UNIQUE ASSETS
- 2000 sales : 448 M(EURO) [atmedica WEB GRAPHIC]
- 2000 EBITDA : 60 M(EURO)
- #3 WW, #1 WW in drug info.,
#1 US for patient info
- pharma oriented, unique
geographic network
(35 countries)
- focus on patient
education / atmedica
[VIVENDI UNIVERSAL LOGO]
<PAGE> 117
[HAVAS LOGO] BUSINESS AND GENERAL INFORMATION:
SUCCEED IN THE WEB MIGRATION
- 2000 sales : 902 M(EURO) [Barbour Index WEB GRAPHIC]
- 2000 EBITDA : 145 M(EURO)
- #2 in Europe for BtoB info
- a media neutral coverage
- leading web positions
(recruitment, IT,
construction...)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 118
[HAVAS LOGO] LOCAL SERVICES:
BUILD UP A TRANSACTIONAL PLATFORM
- 2000 sales : 365 M(EURO) [SCOOT WEB GRAPHIC]
- 2000 EBITDA : 35 M(EURO)
- #1 in France in print/web
- National salesforce and
marketing database
- key partner for Scoot's
European roll-out of
transactional model
[VIVENDI UNIVERSAL LOGO]
<PAGE> 119
[HAVAS LOGO] EDUCATION & KNOWLEDGE:
A GLOBAL PLAYER
- 2000 sales : 1,354 M(EURO) [SOFTWARE GRAPHIC]
- 2000 EBITDA : 180 M(EURO)
- SCHOOL : leading position
in K-12 in France, Spain,
Latin America
- KIDS : #1worldwide in
electronic
- E LEARNING : strong growth
potential
- REFERENCE : a ww player
(Larousse)
- GENERAL LITTERATURE :
#1 in France
[VIVENDI UNIVERSAL LOGO]
<PAGE> 120
[HAVAS LOGO] EDUCATION.COM IS THE ONLY GLOBAL INITIATIVE THAT
ADDRESSES 3 TARGET AUDIENCES SIMULTANEOUSLY
- CORE TARGET : PARENTS (CARETAKERS)
-- direct purchasing
-- recommendation to children
-- end-use
[KIDS, PARENTS, TEACHERS CIRCULAR GRAPHIC]
- SECONDARY TARGET : CHILDREN
-- end-use (main target)
-- recommendation to parents and to other children
- COMPLEMENTARY TARGET : TEACHERS
-- recommendation to parents and children
-- end-use
[VIVENDI UNIVERSAL LOGO]
<PAGE> 121
[HAVAS LOGO] EDUCATION.COM IS THE MOST IMPORTANT GLOBAL
CROSS-ROADS FOR CONTENT, SERVICES AND COMMUNITY
- GLOBAL PUBLISHING RESOURCES
LEADING OFF-LINE GLOBAL MULTIMEDIA BRANDS
<TABLE>
<S> <C> <C> <C> <C> <C>
USA FRANCE UK GERMANY SPAIN BRAZIL
[COUNTRY [COUNTRY [COUNTRY [COUNTRY [COUNTRY [COUNTRY
GRAPHIC] GRAPHIC] GRAPHIC] GRAPHIC] GRAPHIC] GRAPHIC]
INTERNAL
HII ATICA
HER SCIPIONE
HII NATHAN
KINGFISHER LAROUSSE CHAMBERS
BORDAS KINGFISHER ANAYA
LAROUSSE LAROUSSE
--------------------------------------------------------------------------------------------------
BROCKAUS/
TAGTEACHERNET DUDEN
UNIVERSAL STUDIOS THORNES NELSON ELTERN WOLF/
UNIVERSAL MUSIC KNOW.UK, WESTERMAN
... SCHROEDEL/
TEACHERNEWS
KLETT,...
EXTERNAL (DISCUSSIONS IN PROGRESS)
</TABLE>
education.com [VIVENDI UNIVERSAL LOGO]
<PAGE> 122
[HAVAS LOGO] A BALANCED REVENUE MODEL
[BAR GRAPHIC]
<TABLE>
<CAPTION>
(%) 2001 2002 2003
<S> <C> <C> <C>
(Dollars in Thousands)
Subscription Revenues 45% 39% 35%
Advertising Revenues 19% 17% 17%
E.Commerce Revenues 37% 44% 48%
Total revenue $8 mil $20 mil $30 mil
</TABLE>
- Subscription: drawing on current successful model of Adi on line (virtual
classes and testing): 6,000 subscribing families in France
- Advertising: monetizing a targeted audience base
- E-commerce: leveraging the ww #1 position in interactive education
- Break even : H2 2002
[VIVENDI UNIVERSAL LOGO]
<PAGE> 123
[HAVAS LOGO]
- Education : one of our key markets for profitable web developments...
- Games : a key worldwide market for Havas with an already strong web
position
[VIVENDI UNIVERSAL LOGO]
<PAGE> 124
[HAVAS LOGO] GAMES : A LEADER ON ALL PLATFORMS
- 2000 sales : 401 M(EURO) [GAME SOFTWARE GRAPHIC]
- 2000 EBITDA : 80 M(EURO)
- #1 WW on PC
- Consistently awarded best
game of the year (Diablo,
Warcraft)
- Universal Interactive
(40 m (euro) Ebitda) and
estimated Synergies 15 m (euro))
- Flipside success, 8% reach
[VIVENDI UNIVERSAL LOGO]
<PAGE> 125
[HAVAS LOGO]
[flipside.com LOGO]
A LEADER IN
ONLINE INTERACTIVE GAMES
[VIVENDI UNIVERSAL LOGO]
<PAGE> 126
FLIPSIDE.COM: A RECIPE FOR SUCCESS
[HAVAS LOGO]
- ONLINE GAME IS THE FASTEST GROWING MASS MARKET CONTENT ON THE INTERNET:
- large scale of viewership, good stickiness and unique
targeting opportunities
- FLIPSIDE.COM: A LEADER IN THE ONLINE GAME MARKET
- a product of the merger Won.net (exclusive content and
technologies) with Prize Central (profitable business model),
which accelerated their combined growth
- FLIPSIDE.COM WILL EXPAND ITS LEADERSHIP GEOGRAPHICALLY AND ACROSS
MULTIPLE PLATFORMS
- support of Vivendi's global network of alliances, including
the Universal properties
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO]
<PAGE> 127
ONLINE GAME MARKET IS EXPECTED
TO REACH $5 BILLION IN 2004
WITH 73M PLAYERS
[HAVAS LOGO]
ONLINE GAME MARKET SIZE
($ MILLIONS)
[BAR CHART]
<TABLE>
<CAPTION>
1999 2000 2001 2002 2003 2004
---- ---- ---- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
US 58 160 540 1,080 1,990 2,810
Europe 24 87 339 755 1,433 2,126
---- ---- ---- ----- ----- -----
Total 82 247 879 1,835 3,423 4,936
</TABLE>
[FLIPSIDE.COM LOGO] SOURCE: DATAMONITOR [VIVENDI UNIVERSAL LOGO]
<PAGE> 128
BEATING BUSINESS PLAN ON THE 3 KEY
INDICATORS (3 R'S)
[HAVAS LOGO]
REACH
(Mmx)
[LINE CHART]
<TABLE>
<CAPTION>
Mar Apr May Jun Jul Aug Sep Oct Nov Dec
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Actual 5.10% 5.20% 5.70% 6.10% 6.10% 8.10%
Goals 4.10% 4.20% 5.40% 5.60% 5.80% 6.00% 6.20% 6.50% 7.50% 8.00%
</TABLE>
REGISTRATIONS
(millions)
[LINE CHART]
<TABLE>
<CAPTION>
Mar Apr May Jun Jul Aug Sep Oct Nov Dec
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Actual 4,099 4,350 4,866 5,456 6,059 6,610
Goals 4,120 4,745 5,370 6,037 6,703 7,370 8,107 8,844 9,265
</TABLE>
MONTHLY REVENUE
($ m)
[LINE CHART]
<TABLE>
<CAPTION>
Mar Apr May Jun Jul Aug Sep Oct Nov Dec
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Actual 1,674 1,696 1,717 1,982 1,906 2,079
Goals 1,400 1,533 1,533 1,533 1,833 1,833 1,833 2,133 2,133 2,133
</TABLE>
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO]
<PAGE> 129
A LEADER IN ON LINE GAME AND
A TOP 15 SITE IN TERMS OF TOTAL TIME SPENT
[HAVAS LOGO]
<TABLE>
<CAPTION>
RANK WEB PROPERTY MILLIONS OF HOURS
<S> <C> <C>
1 YAHOO SITES 197.2
2 AOL SITES 169.8
3 MICROSOFT SITES 103.5
4 eBAY 87.5
5 iWON, INC. 71.3
6 EXCITE NETWORK 36.7
7 LYCOS 29.5
8 WDIG 24.5
----------------------------------------------------------
9 FLIPSIDE.COM 20.6
----------------------------------------------------------
10 POGO.COM, INC. 19.9
11 ALTAVISTA NETWORK 17.9
12 CNN 12.3
13 NBC INTERNET 12.1
14 eTOUR, INC. 11.4
15 AMAZON.COM, INC. 10.3
</TABLE>
PC Data, August 2000 On Mediametrix, N(degree)12
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO]
<PAGE> 130
"FLIPS" : AN OUTSTANDING LOYALTY PROGRAM
[HAVAS LOGO]
- A simple rewards system that increases traffic and duration on the site
- An efficient profiling tool allowing targeted advertising and direct
marketing :
- Banners targeted by age, gender, location,
- e-mail programs
- Integration of member profile for ad serving & ad sales
- A proven model to lower acquisition costs and boost CPM
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO]
<PAGE> 131
[HAVAS LOGO]
"FLIPS" : A KEY PROFIT DRIVER
LOWER COST
PER HIGHER REVENUE
REGISTRATION PER USER PER MONTH
[ARROWS GRAPHIC] MORE
PROFIT
HIGHER RETENTION
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO]
<PAGE> 132
EVOLUTION OF REVENUE MIX
BREAK EVEN IN Q2 2001
[HAVAS LOGO]
[Bar Chart]
<TABLE>
<CAPTION>
Q1 00 Q4 01
<S> <C> <C>
Direct Marketing 24% 40%
Earn Tokens Advertising 1% 14%
Sponsorships 6% 22%
Interstitial Advertising 2% 8%
Banner Advertising 64% 12%
</TABLE>
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO]
<PAGE> 133
KEY FIGURES
[HAVAS LOGO]
- Expected 2000 revenue : $ 20m
- Expected 2001 revenue : $ 49m
- Break even point : H2 2001
[VIVENDI UNIVERSAL LOGO]
<PAGE> 134
A MEDIA NEUTRAL STRATEGY
[HAVAS LOGO]
- BECOME THE LEADING HOUSEHOLD NAME IN THE ONLINE GAME SPACE
- EXPAND OUR LEADERSHIP POSITIONS GEOGRAPHICALLY AND ACROSS MULTIPLE
PLATFORMS
[TELEVISION GRAPHIC] - INTERACTIVE TELEVISION
- 7 MILLION CANAL+ SET TOP BOXES IN EUROPE
- COMBINING LIVE TV SHOWS WITH ONLINE
MULTIPLAYER GAMES
[MOBILE TERMINAL GRAPHIC] - ONLINE ON MOBILE TERMINALS
- PLAY, GET NEWS ANYTIME ANYWHERE (ARROW) HIGH
LOYALTY
[CONSOLE GRAPHIC] - CONSOLE
- CONSOLES POISED TO REPRESENT A KEY ACCESS
DEVICE AS EARLY AS 2003
- VIZZAVI
- ACCESS TO MASS AUDIENCE 80 MILLION VIZZAVI
CUSTOMERS
- CONSIDERABLE RESOURCES
- LEVERAGE FLIPS TO INCREASE TRAFFIC, RETENTION AND
REVENUES OF ALL VIVENDI UNIVERSAL SITES
[FLIPSIDE.COM LOGO] [VIVENDI UNIVERSAL LOGO]
<PAGE> 135
[HAVAS LOGO]
AS A CONCLUSION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 136
WHAT HAVAS CONTRIBUTES TO VIVENDI UNIVERSAL
[HAVAS LOGO]
- A traditional publisher focusing on multi platform and profitable web
developments
- Huge opportunities in Games & Edutainment with Universal
- Strong customer bases
- Intellectual properties and high value contents
- ...and strong and growing free cash flow (80% of EBITDA)
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 137
[UNIVERSAL LOGO] TOM WILLIAMS
UNIVERSAL STUDIOS
RECREATION GROUP
[VIVENDI UNIVERSAL LOGO]
<PAGE> 138
[UNIVERSAL 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> 139
[UNIVERSAL LOGO] UNIVERSAL STUDIOS RECREATION GROUP
- Universal has evolved from a studio tour to a major worldwide player in
the theme park industry supported by Steven Spielberg as creative
consultant.
[Universal Studios Global Graphic]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 140
[UNIVERSAL LOGO] UNIVERSAL RECREATION - BUSINESS STRATEGY
"To significantly grow the value of the Universal Studios
brand by creating superior entertainment experiences
for consumers worldwide through strategic
partnerships which deliver attractive financial returns."
[VIVENDI UNIVERSAL LOGO]
<PAGE> 141
[UNIVERSAL LOGO] UNIVERSAL RECREATION - OVERVIEW
Profile of Theme Parks
<TABLE>
<CAPTION>
Year
of Opening/
Park Acquisition Participation
---- ----------- -------------
<S> <C> <C>
Universal Studios Hollywood 1964 100% equity
Universal Orlando
- Universal Studios & 1990/1999 50% equity / 7.5% fee / 56% EBITDA
Islands of Adventure
- Wet 'n Wild 1998 100% equity
Universal Studios Beijing 1998 50% equity / 50% EBITDA
Universal Studios Port Aventura 1998 37% equity / 6% fee / 52% EBITDA
Universal Studios Japan 2001 24% equity / 7.5% fee / 39% EBITDA
</TABLE>
Universal Studios Japan opening will grow Universal's Theme Park Attendance to
31MM
[VIVENDI UNIVERSAL LOGO]
<PAGE> 142
[UNIVERSAL LOGO] UNIVERSAL RECREATION - FINANCIAL OVERVIEW
<TABLE>
<CAPTION>
Growth
CY 2000 CY 2002 00 - '02
------- ------- --------
<S> <C> <C> <C>
Revenue
Consolidated $410 million $ 475 million 16%
Unconsolidated 490 million 735 million 50%
------------ -------------- ------
Attributed $900 million $1,210 million 33%
EBITDA
Consolidated $150 million $ 183 million 22%
Unconsolidated 100 million 217 million 117%
------------ -------------- ------
Attributed $250 million $ 400 million 60%
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 143
[UNIVERSAL LOGO] UNIVERSAL RECREATION - GROWTH DRIVERS
- Florida - Universal Orlando
- Second park already driving paid attendance increase of over
80% (FY'98 - FY'01)
- Opening Hard Rock and Royal Pacific Hotels growing resort to a
total 2,400 rooms on-site
- Osaka - Universal Studios Japan
- "Best of the Best" of Universal Studios Attractions
- 35 million people within a 100 mile radius of the park
Translating into the highest attended Universal Studios Theme
Park
- California - Universal Studios Hollywood
- CityWalk expansion featuring 30 new entertainment, dining and
retail choices
- Spain - Universal Studios Port Aventura
- Transforming park into a pan European resort destination:
- Water Park / Two Hotels / Spa / Beach Club & Golf
[VIVENDI UNIVERSAL LOGO]
<PAGE> 144
[UNIVERSAL LOGO] UNIVERSAL RECREATION AND VIVENDI SYNERGIES
- Grow awareness
- Cross promotion: Vizzavi / Theme Parks
Canal + / Theme Parks
Havas / Theme Parks
- Vivendi Universal employee incentives ("Fan Club",
etc..)
- Leverage assets and subscriber bases
- Consumer knowledge
- In-park presence: Game characters
Canal+ properties
- Leverage technological expertise
- Wireless application in theme parks:
- Park concierge - virtual queue lines
- E-Mail
- Music sampling
- Scoot.com: interactive classified information
- flipside.com: on-line gaming tie-ins
- Web-site links
[VIVENDI UNIVERSAL LOGO]
<PAGE> 145
[UNIVERSAL LOGO] UNIVERSAL RECREATION AND VIVENDI SYNERGIES
- Vivendi Universal explodes consumer "touch points"
= Awareness growth
= Attendance increase
+ Fixed cost theme park environment
= Outstanding EBITDA Opportunity
1% Increase in Global Attendance* >> $10 million incremental EBITDA
[VIVENDI UNIVERSAL LOGO]
<PAGE> 146
[UNIVERSAL LOGO] UNIVERSAL RECREATION - SUMMARY
- Capital investment substantially behind us
- future growth highly leveraged for incremental profit
- Strong EBITDA base and growth
- Japan opens spring '01
- Vivendi Universal synergies offer incremental opportunities and
outstanding EBITDA returns
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 147
[UNIVERSAL LOGO] RON MEYER
UNIVERSAL STUDIOS GROUP
[VIVENDI UNIVERSAL LOGO]
<PAGE> 148
[UNIVERSAL 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> 149
[UNIVERSAL LOGO] UNIVERSAL STUDIOS GROUP
UNIVERSAL STUDIOS GROUP
-----------------------
<TABLE>
<CAPTION>
<S> <C>
2000 CONSOLIDATED REVENUE $ 4.60
2000 CONSOLIDATED EBITDA $ 0.30
</TABLE>
[BAR CHART]
(#'S = EUROS, BILLIONS)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 150
[UNIVERSAL LOGO] UNIVERSAL STUDIOS GROUP
UNIVERSAL STUDIOS GROUP
CAGRS 2000 - 2002
-----------------
<TABLE>
<CAPTION>
<S> <C>
2000 CONSOLIDATED REVENUE 7%
2000 CONSOLIDATED EBITDA >10%
</TABLE>
[BAR CHART]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 151
[UNIVERSAL LOGO] UNIVERSAL STUDIOS GROUP
THEME PARKS
CAGRS 2000 - 2002
<TABLE>
<CAPTION>
ATTRIBUTED REVENUE ATTRIBUTED EBITDA
<S> <C> <C>
THEME PARKS 33% 60%
</TABLE>
[BAR CHART]
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 152
[UNIVERSAL LOGO] STACEY SNIDER
UNIVERSAL PICTURES
[VIVENDI UNIVERSAL LOGO]
<PAGE> 153
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> 154
<TABLE>
<CAPTION>
-----------------------------------------------------
<S> <C>
UNIVERSAL PICTURES WE'RE NOT JUST
IS CREATIVELY AND MANAGING A STUDIO
FINANCIALLY WE'RE MANAGING A
STRONGER THAN IT TURNAROUND STORY
HAS BEEN IN YEARS
YOU MAY HAVE IN MIND
----------------------------------------------------- HISTORICAL LOSSES
YOU MAY ASSUME WE
STILL HAVE OLD STYLE
HOLLYWOOD MANAGEMENT
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 155
<TABLE>
<CAPTION>
-------------------------------------------------
<S> <C>
UNIVERSAL PICTURES THAT IS NO LONGER
IS CREATIVELY AND ACCURATE AND IT
FINANCIALLY NO LONGER APPLIES
STRONGER THAN IT
HAS BEEN IN YEARS
-------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 156
<TABLE>
<CAPTION>
-------------------------------------------------
<S> <C>
UNIVERSAL PICTURES WE HAVE RETURNED TO
IS CREATIVELY AND PROFITABILITY AND
FINANCIALLY EXPECT TO GROW BY
STRONGER THAN IT STICKING TO A
HAS BEEN IN YEARS DISCIPLINED PLAN
-------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 157
<TABLE>
<CAPTION>
----------------------------------------------------------
<S> <C>
IN ORDER TO IMPROVE TODAY, PROCESS IS EVERYTHING
OUR FINANCIAL
RETURNS, WE HAD TO PROCESSES THAT REQUIRE:
CHANGE THE CULTURE - RIGOR
AT UNIVERSAL - DEBATE
- ACCOUNTABILITY
---------------------------------------------------------- - FLEXIBITY
- CONSENSUS BUILDING
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 158
<TABLE>
<CAPTION>
-------------------------------------------------
<S> <C>
IN ORDER TO IMPROVE AND WITH OUR
OUR FINANCIAL BUSINESS PROCESSES
RETURNS, WE HAD TO NOW IN PLACE,
CHANGE THE CULTURE WE'RE CONFIDENT
AT UNIVERSAL
A CONSISTENT
AND PROFITABLE SLATE
IS ACHIEVABLE
--------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 159
<TABLE>
<CAPTION>
-------------------------------------------------
<S> <C>
SLATE MANAGEMENT
PROCESS ACCOUNTABLITY
WE CHANGED
OUR BUSINESS RISK PROTECTION
FUNDAMENTALS IN
4 BASIC AREAS LEVERAGING OPPORTUNITY
------------------------------------------------ ACROSS DIVISIONS
</TABLE>
WHICH ENABLES US TO WORK WITHIN THE
CORPORATE MANDATE TO LIMIT
PRODUCTION SPENDING
[VIVENDI UNIVERSAL LOGO]
<PAGE> 160
<TABLE>
<CAPTION>
------------------------------------------------- -------------------------
<S> <C>
WE CHANGED SLATE MANAGEMENT
OUR BUSINESS PROCESS ACCOUNTABLITY
FUNDAMENTALS IN RISK PROTECTION
4 BASIC AREAS LEVERAGING OPPORTUNITY
ACROSS DIVISIONS
------------------------------------------------ -------------------------
</TABLE>
AND TO DEMONSTRATE
IMPROVED FINANCIAL RETURNS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 161
SLATE
MANAGEMENT
[VIVENDI UNIVERSAL LOGO]
<PAGE> 162
<TABLE>
<CAPTION>
UPG PLANS FILMS OVER A 24 MONTH
PERIOD WHICH ARE DETERMINED BY
----------------------- ------------------------ -----------------------
<S> <C> <C>
NUMBER GENRE DESCRIPTION
14-16 FILMS THRILLER TENTPOLE
PER YEAR DRAMA EVENT
COMEDY PORTFOLIO
ROMANCE
ACTION/ADVENTURE
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 163
-------------------------------------------------------------------------------
THE PLANNING PROCESS PERMITS
ENOUGH DEPTH IN THE PROGRAM TO
- FILL SLOTS WHEN A FILM FAILS TO
COME TOGETHER
- PLAN MULTI-MILLION DOLLAR PROJECTS
IN A SANE AND RESPONSIBLE MANNER
--------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 164
--------------------------------------
FILM PLANNING
--------------------------------------
-------------------- 2 - 3 PER YEAR --------------------
[DR. SEUSS
HOW THE [JURASSIC PARK III
GRINCH POSTER]
STOLE CHRISTMAS!
POSTER]
-------------------- --------------------
[arrow logo] [arrow logo]
TENTPOLE
FILMS
------------------ [arrow logo] --------------------
SPECIAL EFFECTS CROSS
DRIVEN PROMOTABLE
------------------ -------------------
--------------------
[THE
MUMMY
RETURNS
POSTER]
---------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 165
-----------------------------------------------------
FILM PLANNING
-----------------------------------------------------
--------------------- -----------------------
[MEET THE [THE FAMILY MAN
PARENTS 4 - 6 PER YEAR POSTER]
POSTER]
--------------------- ---------------------
[arrow logo] [arrow logo]
EVENT
FILMS
---------------- [arrow logo] ---------------
STAR STORY
DRIVEN DRIVEN
---------------- ---------------
---------------
[CAPTAIN
CORELLI'S
MANDOLIN]
----------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 166
-----------------------------------------------------
FILM PLANNING
-----------------------------------------------------
--------------------- -----------------------
[BRING IT ON [JOSIE
4 - 6 PER YEAR AND THE PUSSYCATS
POSTER] POSTER]
--------------------- ---------------------
[arrow logo] [arrow logo]
SMALLER
PORTFOLIO
FILMS
---------------- ---------------
[AMERICAN [arrow logo] [arrow logo] [REDINE
PIE POSTER]
POSTER]
---------------- ---------------
---------------- -------------------------- --------------------
[NICHE [OTHER STUDIOS MARGINALIZE [CROSSOVER
ORIENTED] THEIR SMALL FILMS. POTENTIAL]
---------------- WE EVENTIZE THEM] --------------------
--------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 167
THE COMBINATION OF
-------------------- ---------------------------
SLATE SCHEDULING OVER
COMPOSITION ----> 24 MONTH
TIMEFRAME
-------------------- ---------------------------
YIELDS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 168
-------------------- ----------------------- ---------------------
JANUARY 2000 FEBRUARY 2000 MARCH 2000
THE HURRICANE 1/14 ERIN BROCKOVICH 3/17
ISN'T SHE GREAT 1/28 THE SKULLS 3/31
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2000 MAY 2000 JUNE 2000
U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY
FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30
ROCK VEGAS 4/28
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 AUGUST 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8
THE KLUMPS 7/30
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000
MEET THE PARENTS 10/6 THE GRINCH 11/17 THE FAMILY MAN 12/15
BILLY ELLIOT 10/13 ----------------------- --------------------
-------------------
A BALANCED RELEASE SCHEDULE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 169
-------------------- ----------------------- ---------------------
JANUARY 2000 FEBRUARY 2000 MARCH 2000
THE HURRICANE 1/14 ERIN BROCKOVICH 3/17
ISN'T SHE GREAT 1/28 THE SKULLS 3/31
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2000 MAY 2000 JUNE 2000
U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY
FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30
ROCK VEGAS 4/28
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 AUGUST 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8
THE KLUMPS 7/30
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000
MEET THE PARENTS 10/6 THE GRINCH 11/17 THE FAMILY MAN 12/15
BILLY ELLIOT 10/13
------------------- ----------------------- --------------------
WE LOOK TO SCHEDULE ACROSS THE CALENDAR
WITH NO MORE THAN 2 FILMS PER MONTH
[VIVENDI UNIVERSAL LOGO]
L
<PAGE> 170
-------------------- ----------------------- ---------------------
JANUARY 2000 FEBRUARY 2000 MARCH 2000
THE HURRICANE 1/14 ERIN BROCKOVICH 3/17
ISN'T SHE GREAT 1/28 THE SKULLS 3/31
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2000 MAY 2000 JUNE 2000
U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY
FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30
ROCK VEGAS 4/28
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 AUGUST 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8
THE KLUMPS 7/30
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000
MEET THE PARENTS 10/6 THE GRINCH 11/17 THE FAMILY MAN 12/15
BILLY ELLIOT 10/13
------------------- ----------------------- --------------------
WHERE FILMS ARE TIMED TO
AUDIENCE AVAILABILITY
[VIVENDI UNIVERSAL LOGO]
<PAGE> 171
-------------------- ----------------------- ---------------------
JANUARY 2000 FEBRUARY 2000 ERIN
THE HURRICANE 1/14 BROCKOVICH
ISN'T SHE GREAT 1/28 MARCH 17, 2000
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JUNE 2000
[U-571 GRAPHIC] [GLADIATOR GRAPHIC] ADVENTURES OF ROCKY
AND BULLWINKLE 6/30
APRIL 21, 2000 MAY 5, 2000
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: [BRING IT ON GRAPHIC] THE WATCHER 9/8
THE KLUMPS 7/30 AUGUST 25, 2000
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
NOVEMBER 2000 DECEMBER 2000
[MEET THE THE GRINCH 11/17 THE FAMILY MAN 12/15
PARENTS GRAPHIC]
OCTOBER 6, 2000
------------------- ----------------------- --------------------
MORE THAN EVER IN OUR HISTORY, UPG HAS ADOPTED AGGRESSIVE POLICIES OF:
- CHALLENGING ASSUMPTIONS
- ADAPTING TO OPPORTUNITIES IN THE LANDSCAPE
- AND CREATING BOXOFFICE OPPORTUNITY 12 MONTHS A YEAR
[VIVENDI UNIVERSAL LOGO]
<PAGE> 172
-------------------- ----------------------- ---------------------
JANUARY 2000 FEBRUARY 2000 [ERIN
THE HURRICANE 1/14 BROCKOVICH GRAPHIC]
ISN'T SHE GREAT 1/28 $255 MM WORLDWIDE
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JUNE 2000
[U-571 GRAPHIC] [GLADIATOR GRAPHIC] ADVENTURES OF ROCKY
$75 MILLION $420 MM WORLDWIDE AND BULLWINKLE 6/30
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: [BRING IT ON GRAPHIC] THE WATCHER 9/8
THE KLUMPS 7/30 $60 MILLION+
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
NOVEMBER 2000 DECEMBER 2000
[MEET THE THE GRINCH 11/17 THE FAMILY MAN 12/15
PARENTS GRAPHIC]
$29 MM OPENING
------------------- ----------------------- --------------------
AND ITS WORKED
[VIVENDI UNIVERSAL LOGO]
<PAGE> 173
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2000 FEBRUARY 2000 MARCH 2000
THE HURRICANE 1/14 ERIN BROCKOVICH 3/17
ISN'T SHE GREAT 1/28 THE SKULLS 3/31
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2000 MAY 2000 JUNE 2000
U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY
FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30
ROCK VEGAS 4/28
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 AUGUST 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8
THE KLUMPS 7/30
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2000 NOVEMBER 2000 DECEMBER 2000
MEET THE PARENTS 10/6
BILLY ELLIOT 10/13 THE GRINCH 11/17 THE FAMILY MAN 12/15
------------------- ----------------------- --------------------
</TABLE>
JUST SOME OF OUR UPCOMING FILMS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 174
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2000 FEBRUARY 2000 MARCH 2000
THE HURRICANE 1/14 ERIN BROCKOVICH 3/17
ISN'T SHE GREAT 1/28 THE SKULLS 3/31
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2000 MAY 2000 JUNE 2000
U-571 4/21 GLADIATOR (INT'L) ADVENTURES OF ROCKY
FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30
ROCK VEGAS 4/28
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 AUGUST 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8
THE KLUMPS 7/30
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2000 DECEMBER 2000
MEET THE PARENTS 10/6 [THE GRINCH LOGO]
BILLY ELLIOT 10/13 NOVEMBER 17, 2000 THE FAMILY MAN 12/15
------------------- ----------------------- --------------------
</TABLE>
DIRECTED BY RON HOWARD AND
STARRING JIM CARREY AS THE GRINCH
[VIVENDI UNIVERSAL LOGO]
<PAGE> 175
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2000 FEBRUARY 2000 MARCH 2000
THE HURRICANE 1/14 ERIN BROCKOVICH 3/17
ISN'T SHE GREAT 1/28 THE SKULLS 3/31
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2000 MAY 2000 JUNE 2000
U-571 4/21 GLADIATOR (INT'L) ADVENTURES FOF ROCKY
FLINTSTONES IN VIVA SCREWED 5/12 AND BULLWINKLE 6/30
ROCK VEGAS 4/28
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2000 AUGUST 2000 SEPTEMBER 2000
NUTTY PROFESSOR II: BRING IT ON 8/25 THE WATCHER 9/8
THE KLUMPS 7/30
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2000 NOVEMBER 2000 [THE FAMILY MAN LOGO]
MEET THE PARENTS 10/6 THE GRINCH 11/17
BILLY ELLIOT 10/13 DECEMBER 15
------------------- ----------------------- --------------------
</TABLE>
A HEARTWARMING HOLIDAY FILM
STARRING NICOLAS CAGE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 176
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2001 FEBRUARY 2001 MARCH 2001
HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S
HANNIBAL(INT'L) MANDOLIN 3/16
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2001 MAY 2001 JUNE 2001
JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY
PUSSYCATS 4/13 HOUSE OF 1000 CORPSES
REDLINE 4/27
CAVEMAN'S VALENTINE
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2001 AUGUST 2001 SEPTEMBER 2001
JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001
K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND
HOW HIGH
------------------- ----------------------- --------------------
</TABLE>
AND IN 2001
[VIVENDI UNIVERSAL LOGO]
<PAGE> 177
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2001 MARCH 2001
[HANNIBAL LOGO] CAPTAIN CORELLI'S
MANDOLIN 3/16
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2001 MAY 2001 JUNE 2001
JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY
PUSSYCATS 4/13 HOUSE OF 1000 CORPSES
REDLINE 4/27
CAVEMAN'S VALENTINE
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2001 AUGUST 2001 SEPTEMBER 2001
JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001
K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND
HOW HIGH
------------------- ----------------------- --------------------
</TABLE>
ANTHONY HOPKINS RETURNS AS HANNIBAL LECTER,
CO-STARRING JULIANNE MOORE AND DIRECTED BY RIDLEY SCOTT
[VIVENDI UNIVERSAL LOGO]
<PAGE> 178
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2001 FEBRUARY 2001
HEAD OVER HEELS 2/9 [CAPTAIN CORELLI'S
HANNIBAL(INT'L) MANDOLIN LOGO]
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2001 MAY 2001 JUNE 2001
JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY
PUSSYCATS 4/13 HOUSE OF 1000 CORPSES
REDLINE 4/27
CAVEMAN'S VALENTINE
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2001 AUGUST 2001 SEPTEMBER 2001
JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001
K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND
HOW HIGH
------------------- ----------------------- --------------------
</TABLE>
AN EPIC WWII DRAMA STARRING NICOLAS CAGE AND PENELOPE CRUZ.
DIRECTED BY JOHN MADDEN (SHAKESPEARE IN LOVE)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 179
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2001 FEBRUARY 2001 MARCH 2001
HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S
HANNIBAL(INT'L) MANDOLIN 3/16
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2001 JUNE 2001
JOSIE & THE [THE DRAGONFLY
PUSSYCATS 4/13 MUMMY HOUSE OF 1000 CORPSES
REDLINE 4/27 RETURNS LOGO]
CAVEMAN'S VALENTINE
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2001 AUGUST 2001 SEPTEMBER 2001
JURASSIC PARK III AMERICAN PIE II SPY GAME 9/7
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001
K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND
HOW HIGH
------------------- ----------------------- --------------------
</TABLE>
BRINGING BACK BRENDAN FRASER AND THE CAST OF
THE MUMMY. ALSO STARRING THE ROCK
[VIVENDI UNIVERSAL LOGO]
<PAGE> 180
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2001 FEBRUARY 2001 MARCH 2001
HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S
HANNIBAL(INT'L) MANDOLIN 3/16
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2001 MAY 2001 JUNE 2001
JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY
PUSSYCATS 4/13 HOUSE OF 1000 CORPSES
REDLINE 4/27
CAVEMAN'S VALENTINE
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
AUGUST 2001 SEPTEMBER 2001
[JURASSIC PARK III
LOGO] AMERICAN PIE II SPY GAME 9/7
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001
K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND
HOW HIGH
------------------- ----------------------- --------------------
</TABLE>
THE WORLD'S MOST POWERFUL PREDATORS ARE BACK.
FROM PRODUCER STEVEN SPIELBERG
[VIVENDI UNIVERSAL LOGO]
<PAGE> 181
<TABLE>
<CAPTION>
-------------------- ----------------------- ---------------------
<S> <C> <C>
JANUARY 2001 FEBRUARY 2001 MARCH 2001
HEAD OVER HEELS 2/9 CAPTAIN CORELLI'S
HANNIBAL(INTL) MANDOLIN 3/16
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
APRIL 2001 MAY 2001 JUNE 2001
JOSIE & THE THE MUMMY RETURNS 5/11 DRAGONFLY
PUSSYCATS 4/13 HOUSE OF 1000 CORPSES
REDLINE 4/27
CAVEMAN'S VALENTINE
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
JULY 2001 SEPTEMBER 2001
[AMERICAN PIE 2
JURASSIC PARK III LOGO] SPY GAME 9/7
------------------- ----------------------- --------------------
------------------- ----------------------- --------------------
OCTOBER 2001 NOVEMBER 2001 DECEMBER 2001
K-PAX THE BOURNE IDENTITY A BEAUTIFUL MIND
HOW HIGH
------------------- ----------------------- --------------------
</TABLE>
THE CAST AND FILMMAKERS RETURN
[VIVENDI UNIVERSAL LOGO]
<PAGE> 182
--------------------------------------------------
BRIDGET JONES DIARY
FROM WILDLY POPULAR NOVEL WITH RENEE
ZELLWEGER, HUGH GRANT AND COLIN FIRTH
--------------------------------------------------
--------------------------------------------------
DRAGONFLY
A SUPERNATURAL THRILLER FROM
TOM SHADYAC STARRING KEVIN COSTNER
--------------------------------------------------
--------------------------------------------------
SPY GAME
A SPY THRILLER FROM TONY SCOTT
STARRING ROBERT REDFORD AND BRAD PITT
--------------------------------------------------
--------------------------------------------------
K-PAX
AN INSPIRATIONAL STORY STARRING KEVIN SPACEY
--------------------------------------------------
THE BOURNE IDENTITY
FROM THE BESTSELLING NOVEL BY ROBERT LUDLUM
STARRING MATT DAMON
--------------------------------------------------
--------------------------------------------------
A BEAUTIFUL MIND
A DRAMA STARRING RUSSELL CROWE
DIRECTED BY RON HOWARD
--------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 183
PROCESS
ACCOUNTABILITY
[VIVENDI UNIVERSAL LOGO]
<PAGE> 184
-------------------------------------------------------
UPG MAINTAINS DILIGENCE AND
ACCOUNTABILITY THROUGHOUT
THE FILMMAKING PROCESS
-------------------------------------------------------
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 185
LIKE ANY STUDIO,
WE ARE BARRAGED
WITH FILMMAKING
OPPORTUNITIES
[IMAGINE LOGO] [BEACON LOGO]
[JERSEY FILMS LOGO] [WORKING TITLE FILMS LOGO]
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 186
OUR PRIMARY SUPPLIERS
HAVE EXCELLENT TRACK
RECORDS FOR DELIVERING
COMMERCIAL AND
CRITICAL SUCCESSES
[IMAGINE LOGO] [BEACON LOGO]
[JERSEY FILMS LOGO] [WORKING TITLE FILMS LOGO]
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 187
AT UNIVERSAL, NO FILM IS
UNDERTAKEN WITHOUT
PASSING THROUGH
OUR RIGOROUS
GREENLIGHTING PROCESS
GREENLIGHTING REQUIRES
CONSENSUS BUILDING
AND DEBATE
[IMAGINE LOGO] [BEACON LOGO]
[JERSEY FILMS LOGO] [WORKING TITLE FILMS LOGO]
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 188
WE SOLICIT
PROJECTIONS FROM:
----------------------------------------------------
THEATRICAL MARKETING AND DISTRIBUTION
----------------------------------------------------
----------------------------------------------------
VIDEO AND DVD
----------------------------------------------------
----------------------------------------------------
TELEVISION
----------------------------------------------------
----------------------------------------------------
CONSUMER PRODUCTS
----------------------------------------------------
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 189
DIVISIONS ARE HELD
ACCOUNTABLE FOR
THEIR PROJECTION
REVENUES AND COSTS
----------------------------------------------------
THEATRICAL MARKETING AND DISTRIBUTION
----------------------------------------------------
----------------------------------------------------
VIDEO AND DVD
----------------------------------------------------
----------------------------------------------------
TELEVISION
----------------------------------------------------
----------------------------------------------------
CONSUMER PRODUCTS
----------------------------------------------------
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 190
UPG CAREFULLY PLANS AND
SUPERVISES FILMS IN PRODUCTION
----------------------------- ----------------------------------
CAREFUL AGGRESSIVE
PRE-PRODUCTION PRODUCTION
========> SUPERVISION
----------------------------- ----------------------------------
AGGRESSIVE SUPERVISION IN PRE-PRODUCTION,
PRODUCTION, AND POST-PRODUCTION OFFERS
SPECIFIC OPPORTUNITIES TO REASSESS OUR
ASSUMPTIONS AND ADJUST IF NECESSARY
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 191
UPG CAREFULLY PLANS AND
SUPERVISES FILMS IN PRODUCTION
----------------------------- ----------------------------------
CAREFUL AGGRESSIVE
PRE-PRODUCTION PRODUCTION
========> SUPERVISION
----------------------------- ----------------------------------
ONE BENEFIT OF THIS PROCESS IS THAT IT
ALLOWED US TO GAMBLE ON FIRST TIME DIRECTORS
<TABLE>
<S> <C>
[AMERICAN PIE POSTER] [THE BEST MAN POSTER] [BRING IT ON POSTER] [BILLY ELLIOT POSTER]
</TABLE>
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 192
UPG CAREFULLY PLANS AND
SUPERVISES FILMS IN PRODUCTION
----------------------------- ----------------------------------
CAREFUL AGGRESSIVE
PRE-PRODUCTION PRODUCTION
========> SUPERVISION
----------------------------- ----------------------------------
AND MANAGE THE BIGGER
MORE ELABORATE PRODUCTIONS
<TABLE>
<S> <C>
[GLADIATOR POSTER] [DR. SEUSS' HOW THE GRINCH STOLE CHRISTMAS POSTER] [ERIN BROCKOVICH POSTER]
</TABLE>
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 193
UPG CAREFULLY PLANS AND
SUPERVISES FILMS IN PRODUCTION
----------------------------- ----------------------------------
CAREFUL AGGRESSIVE
PRE-PRODUCTION PRODUCTION
========> SUPERVISION
----------------------------- ----------------------------------
AND THE PICTURES
HAVE DELIVERED
--------------------------------------------------------------------------------
- AMERICAN PIE GROSSED 13X BUDGET
- BEST MAN BROUGHT BACK BUDGET ITS OPENING WEEKEND
- BRING IT ON WILL GROSS 6X BUDGET
- ERIN BROCKOVICH GROSSED $255 MILLION WORLDWIDE
- GLADIATOR GROSSING $420 MILLION WORLDWIDE - AND COUNTING!
[ ]===================[ ]===================[ ]====================[ ]
ACQUISITION GREENLIGHTING PRE-PRODUCTION PRODUCTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 194
RISK
PROTECTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 195
-------------------------------------------------------
BECAUSE OF INDUSTRY DYNAMICS, THE
MOTION PICTURE BUSINESS IS
FUNDAMENTALLY A LOW RETURN
BUSINESS. AS A RESULT, WE MANAGE
OUR INVESTMENT RIGOROUSLY.
-------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 196
----------------------------- ----------------------------------
UPG MANAGES IN ORDER TO HAVE A
ITS SLATE WITHIN FULL SLATE, UPG HAS TO
A CORPORATE MANDATED ========> MAKE CHOICES
PRODUCTION CAP
----------------------------- ----------------------------------
WE CONSIDER A VARIETY OF FINANCING
ARRANGEMENTS IN ORDER TO BALANCE THE
LIMITS OF PRODUCTION SPENDING AGAINST
THE PROPER MIX OF RIGHTS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 197
-------------------------------------------------------
RETAIN WORLDWIDE RIGHTS
-------------------------------------------------------
[THE MUMMY RETURNS POSTER] [JURASSIC PARK III POSTER]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 198
-------------------------------------------------------
STUDIO JOINT VENTURES
-------------------------------------------------------
----------------------------
GLADIATOR [GLADIATOR PHOTO]
A BEAUTIFUL MIND
JOINT VENTURES
WITH DREAMWORKS
BOTH STARRING
RUSSELL CROWE
----------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 199
-------------------------------------------------------
OPPORTUNISTIC RIGHTS SALES
-------------------------------------------------------
----------------------------
K-PAX [PHOTO]
ABILITY TO FINANCE
65% OF THE FILM IN
EXCHANGE FOR
INTERNATIONAL TERRITORIES
----------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 200
-------------------------------------------------------
CONTINUING BUSINESS RELATIONSHIPS
-------------------------------------------------------
WHICH HAVE THE BENEFIT OF PROVIDING
ONGOING CREATIVE OPPORTUNITIES
[VIVENDI UNIVERSAL LOGO]
<PAGE> 201
-------------------------------------------------------
CONTINUING BUSINESS RELATIONSHIPS
-------------------------------------------------------
UNIVERSAL HAS THE OPTION [BEACON LOGO]
TO ACQUIRE DOMESTIC RIGHTS TO
BEACON'S FILMS FOR LESS
THAN 40% OF THE BUDGET
[VIVENDI UNIVERSAL LOGO]
<PAGE> 202
-------------------------------------------------------
CONTINUING BUSINESS RELATIONSHIPS
-------------------------------------------------------
OUR RELATIONSHIP BROUGHT US: [BEACON LOGO]
- THE SUMMER'S SUPRISE HIT:
BRING IT ON
- THE FAMILY MAN, STARRING
NICOLAS CAGE
- SPY GAME, WITH ROBERT
REDFORD AND BRAD PITT
[VIVENDI UNIVERSAL LOGO]
<PAGE> 203
-------------------------------------------------------
CONTINUING BUSINESS RELATIONSHIPS
-------------------------------------------------------
PREVIOUSLY A JOINT VENTURE WITH [WORKING TITLE FILMS LOGO]
CANAL+ - THAT IS WHOLLY WITHIN
THE VIVENDI UNIVERSAL FAMILY
[VIVENDI UNIVERSAL LOGO]
<PAGE> 204
-------------------------------------------------------
CONTINUING BUSINESS RELATIONSHIPS
-------------------------------------------------------
BROUGHT US NOTTING HILL AND [WORKING TITLE FILMS LOGO]
THE ONGOING PRODUCTION OUTPUT
OF THE MOST SUCCESSFUL OVERSEAS
SUPPLIER OF FILMS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 205
-------------------------------------------------------
CONTINUING BUSINESS RELATIONSHIPS
-------------------------------------------------------
WITH UPCOMING [WORKING TITLE FILMS LOGO]
FILMS TO INCLUDE:
[CAPTAIN CORELLI'S MANDOLIN POSTER] [BRIDGET JONE'S DIARY POSTER]
[BILLY ELLIOTT POSTER] [PHOTO]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 206
UPG BUILDS FRANCHISES TO PROTECT RISK
FRANCHISES ARE MORE PREDICTIVE
------------------------------------- ----------------------------------------
AUDIENCES ALREADY KNOW ALLOWING US TO CAPTURE
AND LOVE THESE CHARACTERS, COMPETITIVE ADVANTAGE
SO THEY ARE EASIER AND OF BRANDING AND SYNERGY
LESS EXPENSIVE TO RE-INTRODUCE
------------------------------------- ----------------------------------------
IN THE 1990S, [THE MUMMY POSTER] [AMERICAN PIE POSTER]
8 OF 10 UNIVERSAL SEQUELS
WERE PROFITABLE
IN 1999, UNIVERSAL
BUILT 2 NEW FRANCHISES
[VIVENDI UNIVERSAL LOGO]
<PAGE> 207
UPG BUILDS FRANCHISES TO PROTECT RISK
UNIVERSAL'S BUSINESS PROCESS ALLOWS FOR
EFFECTIVE TURNAROUND OF FRANCHISE
THE COMPETITION WHILE UNIVERSAL IS
IS MIRED IN IN PRODUCTION
DEVELOPMENT
[JURRASIC PARK III POSTER] [AMERICAN PIE POSTER]
---------------------
MIB2
JUMJANJI 2
ZORRO 2
--------------------- [THE MUMMY RETURNS POSTER] [HANNIBAL POSTER]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 208
LEVERAGING
OPPORTUNITY
ACROSS DIVISIONS
----------------
THE GRINCH
MODEL
[VIVENDI UNIVERSAL LOGO]
<PAGE> 209
-------------------------------------------------------
IN ORDER TO MAXIMIZE RETURNS, UPG
COORDINATES WITH EVERY BUSINESS UNIT
TO SEEK NEW BUSINESS OPPORTUNITY AND
MAXIMIZE ANCILLARY REVENUE
-------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 210
CROSS PROMOTING THE GRINCH WAS
A COMPANY-WIDE IMPERATIVE
-------------------------------------
PROMOTIONAL PARTNERS
-------------------------------------
<TABLE>
<S> <C>
[PHOTO]
========> [HERSHEY'S LOGO] [SPRITE LOGO]
[VISA LOGO] [KELLOGG'S LOGO] [WENDY'S LOGO]
[NABISCO LOGO]
[ZIPLOC LOGO] [UNITED STATES POSTAL SERVICE LOGO]
-------------------------------------
OVER $200 MILLION IN SUPPORT
$65 MILLION IN MEDIA
LARGEST PROMOTIONAL CAMPAIGN
OF THE YEAR - AND UNIVERSAL'S
LARGEST CAMPAIGN EVER
-------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 211
CROSS PROMOTING THE GRINCH WAS
A COMPANY-WIDE IMPERATIVE
-------------------------------------
CONSUMER PRODUCTS
-------------------------------------
[PHOTO] [GRINCH HAT PHOTO] [GRINCH CLOTHING PHOTO]
=========> [GRINCH SNEAKER GRAPHIC]
-------------------------------------
OVER 1,000 PRODUCTS FROM
OVER 100 COMPANIES SOLD IN
RETAILERS AROUND THE WORLD
-------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 212
CROSS PROMOTING THE GRINCH WAS
A COMPANY-WIDE IMPERATIVE
-------------------------------------
THEME PARKS
-------------------------------------
[PHOTO]
========> [PHOTO]
-------------------------------------
GRINCHMAS AT UNIVERSAL
HUGE DISPLAYS AT ALL THEME
PARKS FOR HOLIDAY '00
-------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 213
CROSS PROMOTING THE GRINCH WAS
A COMPANY-WIDE IMPERATIVE
-------------------------------------
MUSIC
-------------------------------------
[PHOTO]
========> [THE GRINCH WHO STOLE CHRISTMAS POSTER]
-------------------------------------
SOUNDTRACK FROM INTERSCOPE
FEATURING TOP COUNTRY,
ROCK, HIP HOP AND
ALTERNATIVE ARTISTS
-------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 214
CROSS PROMOTING THE GRINCH WAS
A COMPANY-WIDE IMPERATIVE
[PHOTO] ------------------------------------
BUT THERE ARE
PIECES MISSING
========>
IN THE FUTURE,
THE DIVISIONS OF
VIVENDI UNIVERSAL
WILL COMPLETE
THE PUZZLE
------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 215
CROSS PROMOTING THE GRINCH WAS
A COMPANY-WIDE IMPERATIVE
[PHOTO] ------------------------------------
IN THE FUTURE, THIS KIND
OF PROPERTY WOULD BE
========> LEVERAGED ACROSS ALL
OF THE VIVENDI
UNIVERSAL DIVISIONS
- VIZZAI - WIRELESS
- CANAL + - SUBSCRIBERS
- HAVAS - GAMES
------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 216
LOOKING TO
THE FUTURE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 217
--------------------------------------- A GLOBAL ORGANIZATION WITH
OVER 1,200 EMPLOYEES.
HERE'S WHO RESPONSIBLE FOR:
WE ARE TODAY - DEVELOPMENT OF THEATRICAL,
MADE FOR VIDEO AND TV
ANIMATION PRODUCT
---------------------------------------
- DOMESTIC AND INTERNATIONAL
PRODUCTION
- WORLDWIDE THEATRICAL AND
VIDEO DISTRIBUTION
- SPECIALTY FILM PRODUCTION,
ACQUISITION AND DISTRIBUTION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 218
--------------------------------------- REVENUE BREAKDOWN
HERE'S WHO [PIE CHART]
WE ARE TODAY
<TABLE>
--------------------------------------- <CAPTION>
<S> <C>
TELEVISION 25%
OTHER 5%
THEATRICAL 25%
HOME VIDEO 45%
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 219
--------------------------------------- REVENUE BREAKDOWN
HERE'S WHO [PIE CHART]
WE ARE TODAY
--------------------------------------- THEATRICAL 25%
-------------------------------------
THEATRICAL
55% NORTH AMERICA
45% REST OF WORLD
-------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 220
--------------------------------------- REVENUE BREAKDOWN
HERE'S WHO [PIE CHART]
WE ARE TODAY
--------------------------------------- HOME VIDEO 45%
-------------------------------------
HOME VIDEO
60% NORTH AMERICA
40% REST OF WORLD
-------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 221
REVENUE BREAKDOWN
THE MAJORITY OF THE REVENUES
ARE FROM NORTH AMERICA [PIE CHART]
THERE ARE TREMENDOUS
OPPORTUNITIES TO EXPAND HOME VIDEO 45%
OUR REVENUE ACROSS THE
WORLD THROUGH COMBINED
VIVENDI UNIVERSAL ASSETS -------------------------------------
HOME VIDEO
60% NORTH AMERICA
40% REST OF WORLD
-------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 222
--------------------------------------------------------------------
KEY GROWTH
---------------------------------------------------------------------
THE DVD PLATFORM IS PROVIDING ENORMOUS
ANCILLARY VALUE TO OUR PROPERTIES
[JAWS POSTER] [THE MUMMY POSTER] [GALAXY QUEST POSTER] [END OF DAYS POSTER]
[AMERICAN PIE POSTER] [ERIN BROCKOVICH POSTER] [SAVING PRIVATE RYAN POSTER]
[THE BONE COLLECTOR POSTER]
USHV HAS 8 DVD TITLES SHIPPING OVER
1 MILLION UNITS - MORE THAN ANY OTHER STUDIO
INCLUDING ERIN BROCKOVICH, THE FIRST FEMALE DRIVEN TITLE
TO CROSS THE EXCLUSIVE 1MM UNIT THRESHOLD
[VIVENDI UNIVERSAL LOGO]
<PAGE> 223
--------------------------------------------------------------------
KEY GROWTH
--------------------------------------------------------------------
--------------------------------------------------------------------------------
- BY END OF FISCAL 2000, USHV DISTRIBUTED 5 OF THE TOP
20 SELLING DVD TITLES OF ALL TITLE
- FY00 FULL YEAR DOMESTIC DVD REVENUE GREW
APPROXIMATELY 90% OVER FY99. Q4 REVENUE WAS UP
NEARLY 140% YEAR OVER YEAR
--------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 224
--------------------------------------------------------------------
KEY GROWTH
--------------------------------------------------------------------
OVER 2 MM DVD UNITS HAVE BEEN ORDERED
ON JURASSIC PARK AND LOST WORLD
[JURASSIC PARK POSTER] [THE LOST WORLD POSTER]
AND IN A DVD INDUSTRY FIRST - WE ARE PROVIDING A
HOTLINK TO THE SET OF JURASSIC PARK 3; PROVIDING A
NEW MARKETING TOOL TO REACH A DEDICATED FANBASE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 225
-------------------------------------------------------------------------
RE-INVENTING OURSELVES IN THE DIGITAL AGE
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
- CREATING NEW DISTRIBUTION - VIDEO-ON-DEMAND
CHANNELS FOR TRADITIONAL
FEATURE FILM CONTENT
- REDUCING PRODUCTION, - E-CINEMA
MARKETING AND DISTRIBUTION - E-PROCUREMENT
COSTS - EXTRANET ACTIVITIES
(EXHIBITORRELATIONS.COM)
- INCREASE MARKETING ========> - LEVERAGE INTERNET TO MARKET
EFFICIENCY DIRECTLY TO CONSUMERS IN A
MORE TARGETED WAY
- CREATE NEW
PRODUCTS/BUSINESSES AROUND - SOURCING IDEAS AND TALENT ON-
UNIVERSAL'S CORE PRODUCTION LINE
AND MARKETING ACTIVITIES, - OUT-TAKES, BEHIND-THE-SCENES
AND FEATURE FILM LIBRARY FOOTAGE
- CREATIVE MARKETING MATERIALS
- CREATE/INVEST IN NEW - FILM CLIPS (e.g. E-GREETINGS)
CONTENT BUSINESSES THAT
LEVERAGE UNIVERSAL'S - HYPNOTIC.COM - CONTROLLING
PRODUCTION, MARKETING AND INTEREST IN SHORT FILMS FOR
DISTRIBUTION OPERATIONS INTERNET THAT CAN BUILD INTO A
BROADER VERTICAL MOVIE PORTAL
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 226
-------------------------------------------------------------------------
VIVENDI UNIVERSAL SYNERGIES
-------------------------------------------------------------------------
COMBINED, THE PRODUCTION AND DISTRIBUTION SYNERGY POTENTIAL FOR
UNIVERSAL PICTURES AND STUDIO CANAL IS EXPECTED TO DRIVE STRONG
REVENUE GROWTH...
------------------------------------- ----------------------------------------
PRODUCTION SYNERGIES DISTRIBUTION SYNERGIES
- PURSUE CO-PRODUCTION - UTILIZE COMMON THEATRICAL,
OPPORTUNITIES VIDEO AND TV DISTRIBUTION
- COMBINE INTERNATIONAL - ASSUMING DISTRIBUTION OF STUDIO
ACQUISITION EFFORTS CANAL PRODUCT ON VIDEO
- MINE LIBRARIES FOR PRODUCT - ESTABLISH DIRECT DISTRIBUTION
REMAKES INCLUDING FILM, DIRECT- OPERATIONS IN TERRITORIES
TO-VIDEO, AND TV ANIMATION CURRENTLY COVERED BY THIRD
- LEVERAGE UNIVERSAL PRODUCTION PARTIES
ASSETS
------------------------------------- ----------------------------------------
...RESULTING IN AN EXPECTED 10% REVENUE LIFT...IN ADDITION
TO LOWER INVESTMENT SPENDING AND OVERHEAD COST BENEFITS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 227
-------------------------------------------------------------------------
VIVENDI UNIVERSAL
-------------------------------------------------------------------------
WE WILL ALSO BE LEVERAGING OUR ASSETS
ACROSS ALL THE VIVENDI UNIVERSAL DIVISIONS
SHORT TERM LONG TERM
------------------------------------- ----------------------------------------
UPG WILL ACT AS ENABLER UPG WILL LEVERAGE PRODUCT
- FEEDING PRODUCT INTO ACROSS THE WIDE ARRAY OF
PIPELINE EMERGING PLATFORMS
- ATTRACTING SUBSCRIBERS TO CAPITALIZING ON VIVENDI
VIZZAVI AND CANAL + UNIVERSAL'S FOOTPRINT IN
WIRELESS TECHNOLOGY
------------------------------------- ----------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 228
IN THIS NEW AND DIVERSIFIED, GLOBAL ENTERTAINMENT COMPANY, UNIVERSAL
PICTURES IS THE CONTENT FOCAL POINT FOR FILMED ENTERTAINMENT
[CONSUMER ENTERTAINMENT ASSETS GRAPIC]
CONSUMER
ENTERTAINMENT ASSETS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
GLOBAL
DISTRIBUTION
CANAL CANAL + WITH OUR CONTENT
IT IS A COMBINED SATELLITE IN PLACE AND
OPERATION THAT OUR BRETHREN
ONLY WORKS WITH <======= UNIVERSAL =======> LEADING THE
A STRONG PICTURES WAY INTO THE
CORE FEEDING DIGITAL AGE,
THE COMPANY WE ARE CONFIDENT
IN A STRONG AND
SHINING FUTURE AT
HAVAS MARKETING VIZZAVI VIVENDI UNIVERSAL
STUDIO
UNIVERSAL
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 229
-------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------
RETURN TO PROFITABILITY DRIVE GROWTH FOR THE FUTURE
------------------------------------- ----------------------------------------
CHANGED BUSINESS BUILDING ASSETS ACROSS
FUNDAMENTALS NEW PLATFORMS
- SLATE MANAGEMENT - - DVD -
- PROCESS ACCOUNTABILITY - - DIGITIAL INITIATIVES -
- RIGOROUS RISK MANAGEMENT - - COMBINED SYNERGIES -
-LEVERAGING OPPORTUNITIES -
------------------------------------- ----------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 230
UPG'S RE-EMERGENCE IS REAL HERE TO STAY
...AND NOW EVEN MORE EXPLOITABLE WITH
THE COMBINED ASSETS OF VIVENDI
UNIVERSAL AND CANAL +
[VIVENDI UNIVERSAL LOGO
# # #
<PAGE> 231
[UNIVERSAL LOGO] BLAIR WESTLAKE, CHAIRMAN
UNIVERSAL TELEVISION &
NETWORKS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 232
[UNIVERSAL 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> 233
[UNIVERSAL LOGO]
UNIVERSAL TELEVISION & NETWORKS
- Universal Television Operates In Three Segments Of The Value Chain...
[FLOW CHART]
<TABLE>
------------------------------------------------------------------------------
<S> <C> <C> <C>
PRODUCTION PROGRAM CHANNELS DISTRIBUTION
DISTRIBUTION PLATFORMS
JUST SHOOT ME CURRENT MOVIES 25 MLN MANAGED CABLE
STEVE HARVEY 4,000 MOVIE TITLES CHANNEL SUBS DTH
BLIND DATE 24,000 TV EPISODES 23 MLN JOINT DTT
INT'L TALK SHOWS USA NETWORKS' VENTURE ADSL
WORKING TITLE TV PROGRAMS (INT'L) CHANNEL SUBS ETC.
>650 HOURS
ANNUALLY
------------------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 234
[UNIVERSAL LOGO] UNIVERSAL'S MOVIE LIBRARY
- MOVIES
[X] 4,000 + feature length movies
- Titles known worldwide
<TABLE>
<S> <C> <C> <C>
[JURASSIC PARK PHOTO] [SHAKESPEARE IN LOVE PHOTO]
[APOLLO 13 PHOTO] [LIAR, LIAR PHOTO]
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 235
[UNIVERSAL LOGO] UNIVERSAL'S MOVIE LIBRARY
<TABLE>
<S> <C>
-------------------------------- ------------------------------
- WORLD'S 2ND LARGEST
- CONTINUING ANNUITY MOVIE LIBRARY
FROM WORLDWIDE
LICENSING - WORLDWIDE ALL-MEDIA
RIGHTS TO MOST TITLES
- HIGH EBITDA MARGIN
FROM OLDER TITLES OF > 60%
-------------------------------- - RECOGNIZED LEADER IN
HORROR GENRE
[UNIVERSAL MOVIE LIBRARY GRAPHIC]
- HITCHCOCK DIRECTED
-------------------------------- FILMS (PSYCHO, THE
BIRDS...)
- FOUNDATION FOR
CHANNEL CREATION - FRANKENSTEIN,
DRACULA, WOLFMAN...
[X] 100% genre-appropriate
for Studio Universal
[X] ~30% genre-appropriate
for 13th Street
-------------------------------- ------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 236
[UNIVERSAL LOGO]
UNIVERSAL'S MOVIE LIBRARY
- TELEVISION
[X] 24,000 + television episodes
[MAGNUM, P.I. PHOTO] [MURDER, SHE WROTE PHOTO]
[COLUMBO PHOTO]
[VIVENDI UNIVERSAL LOGO]
<PAGE> 237
[UNIVERSAL LOGO]
UNIVERSAL'S MOVIE LIBRARY
<TABLE>
<S> <C> <C>
-------------------------------- -------------------------------------
- FOUNDATION FOR CHANNEL
- WORLD'S LARGEST LIBRARY CREATION
OF ONE-HOURS AND LONG
FORM TV PROGRAMS [X] 13th Street is only action &
suspense channel designed
- WORLD'S LARGEST LIBRARY to take best advantage of a
OF ACTION, MYSTERY AND Hollywood studio library
SUSPENSE GENRES
[X] > 50% of Universal's TV
library is genre-appropriate
for 13th Street
-------------------------------- -------------------------------------
[UNIVERSAL TV LIBRARY PHOTO]
-------------------------------- -------------------------------------
- CONTINUING ANNUITY
FROM WORLDWIDE - USA NETWORKS
LICENSING PROGRAMMING PROVIDES
CURRENT AND ADDITIONAL
LIBRARY TV PRODUCT
- HIGH EBITDA MARGIN (EG: LAW AND ORDER,
FOR OLDER TITLES XENA: PRINCESS WARRIOR)
OF > 80%
-------------------------------- -------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 238
[UNIVERSAL LOGO] A GLOBAL TV LICENSING FOOTPRINT
- Geographic breakdown of FY 2000 TV revenues
United States Europe
43% 43%
[PHOTO] [PHOTO]
Rest of the
World
14%
[VIVENDI UNIVERSAL LOGO]
<PAGE> 239
[UNIVERSAL LOGO] OWN CONTENT GENERATES MULTIPLE
REVENUES STREAMS
- NEW MOVIES ------------------> - DRIVER FOR LIBRARY, CHANNEL
DEVELOPMENT & INTERACTIVE SERVICES
- PPV AND VOD ------------------> - DRIVER FOR CHANNEL DEVELOPMENTAL &
RIGHTS OF NEW LIBRARY
MOVIES
- ANNUITY GENERATING ANNUAL REVENUES
- DRIVER FOR CHANNEL DEVELOPMENT &
INTERACTIVE SERVICES
- TV & MOVIE ------------------> - 13TH STREET
LIBRARIES
- SCI FI
- STUDIO UNIVERSAL
/THE STUDIO
- C+ CHANNELS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 240
[UNIVERSAL LOGO] STRONG INTERNATIONAL BRANDS
- PROGRAMMING LINE-UP CONSISTS OF ~ 35% FROM UNIVERSAL LIBRARIES
- LOCAL PROGRAMMING PROVIDING THE MAJORITY OF THE BALANCE
- "The Most Dangerous Address on Television"
[13TH STREET PHOTO]
- Basic Tier Action & Suspense Channel
- "The Movie Channel From the Movie Makers"
[STUDIO UNIVERSAL PHOTO]
- Basic Tier Contemporary Movie Channel
- Science Fiction Programming
[SCI-FI PHOTO]
- Most Widely Distributed Brand (22M HH)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 241
[UNIVERSAL LOGO] AN AGGRESSIVE ROLL-OUT:
7 CHANNELS IN 3 YEARS
[USA NETWORK PHOTO]
LAT AM/BRAZIL *
<TABLE>
<S> <C> <C> <C> <C>
[13EME RUE PHOTO] [SCI-FI PHOTO] [STUDIO UNIVERSAL PHOTO] [13TH STREET PHOTO] [CALLE 13 PHOTO] [STUDIO UNIVERSAL PHOTO]
FRANCE UK ITALY GERMANY SPAIN GERMANY
NOVEMBER FEBRUARY MAY AUGUST SEPTEMBER
1997 1998 1998 1998 1999
==============================================================================================================================
1ST CHANNEL ASSUMED 1ST CHANNEL 1ST CHANNEL IN 1ST CHANNEL IN SPAIN
IN TERRITORY CONTROL FROM IN TERRITORY TERRITORY 2ND CHANNEL IN GERMANY
USA
<C> <C>
[STUDIO UNIVERSAL PHOTO] [STUDIO PHOTO]
SPAIN UK*
MAY JANUARY
2000 2001
========================================
2ND 2ND
CHANNEL IN CHANNEL IN
TERRITORY TERRITORY
</TABLE>
* USA BRAZIL AND UK "STUDIO" ARE 50% OWNED BY UNIVERSAL
[VIVENDI UNIVERSAL LOGO]
<PAGE> 242
[UNIVERSAL LOGO] UNIVERSAL NETWORKS STRATEGY
--------------------------------------------------------------------------------
- USE PLATFORM LAUNCHES IN NEW TERRITORIES TO
STRATEGIC GENERATE ADDITIONAL REVENUES BEYOND PROGRAM
POSITIONING LICENSING
- MAXIMIZE CARRIAGE THROUGH BASIC TIER PENETRATION
--------------------------------------------------------------------------------
BUILD NEW GLOBAL - FORTIFY LICENSING BUSINESS
ASSETS - ESTABLISH CONSUMER BRANDS VIA COMPELLING
THEMATIC APPROACH
--------------------------------------------------------------------------------
FOCUS ON - LOCAL EXECUTION
MARKETING - AGGRESSIVE PROMOTION: NEW SUBSCRIBERS VS.
RATINGS ONLY
--------------------------------------------------------------------------------
COST EFFICIENCIES - REALIZE ECONOMIES OF SCALE THROUGH MULTI-
CHANNEL OPERATIONS
--------------------------------------------------------------------------------
CREATION OF LOCAL - CHANNELS PROVIDE A "LABORATORY" FOR LOW-COST
PROGRAMMING PRODUCTION
--------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 243
[UNIVERSAL LOGO] FINANCIAL TRENDS:
STRONG OPERATING LEVERAGE
- EXISTING CHANNELS EXPECTED TO BREAK-EVEN IN 2002
- 6 OF THE 9 EXISTING CHANNELS WILL BREAKEVEN IN 2001
<TABLE>
<CAPTION>
-------------------------------
2000 E 2002 E
-------------------------------
<S> <C> <C>
SUBSCRIBERS 25 Mln 32 Mln
REVENUES $ 100 Mln $ 160 Mln
EBITDA $ (20) Mln Breakeven
-------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 244
VIVENDI UNIVERSAL OPPORTUNITIES
- Optimization across the entire TV value chain
--------------------------------------------------------------------------------
PROGRAM DISTRIBUTION
PRODUCTION DISTRIBUTION CHANNELS PLATFORMS
UNIVERSAL UNIVERSAL UNIVERSAL CANAL +
CANAL + CANAL + CANAL +
-------------------------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 245
BENEFITS FROM INTEGRATION
INTO VIVENDI UNIVERSAL
- CROSS-FERTILIZE UNIVERSAL PROGRAMMING AND VIVENDI UNIVERSAL'S DISTRIBUTION
PLATFORMS
[X] eg: Universal networks on Canal+ platforms, Multithematiques channels
in some Universal territories, enhanced subscribers retention on Canal+
platforms
- POWERFUL COMBINATION OF COMPLEMENTARY LIBRARIES DRIVING IMPROVED DISTRIBUTION
VIA CHANNELS AND LICENSING
[X] eg: Universal titles to drive Canal+ library in non Canal+ territories
- CROSS-PROMOTION OPPORTUNITIES
[X] eg: Vivendi Universal's products on Universal Networks
[VIVENDI UNIVERSAL LOGO]
<PAGE> 246
BENEFITS FROM INTEGRATION
INTO VIVENDI UNIVERSAL
- COMBINE FORCES WITH MULTITHEMATIQUES TO CREATE AND DEVELOP NEW BRANDED
CHANNELS
- ENHANCED OPPORTUNITIES TO SECURE DELIVERY OF CHANNELS AND PRODUCT LICENSING
WITH OTHER VERTICALLY-INTEGRATED MEDIA COMPANIES
- PROGRAMMING, MARKETING, BROADCASTING AND OVERHEAD COST REDUCTIONS
[VIVENDI UNIVERSAL LOGO]
<PAGE> 247
BENEFITS FROM INTEGRATION
INTO VIVENDI UNIVERSAL
- Vivendi Universal Is Well-positioned For Video and Demand
-------------------------- ------------------------
- WORLD'S LARGEST - NEW MARKETS
COMBINED US /
EUROPEAN LIBRARY - DEEPER PENETRATION
OF LIBRARIES
- INTERACTIVE PLATFORMS
- HIGHER REVENUES
- DIRECT ACCESS TO
CONSUMERS - INCREASED MARGINS
-------------------------- ------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 248
SUMMARY
<TABLE>
<S> <C> <C>
-----------------------------------
- STRONG BRANDS
[13TH STREET LOGO] --------------------------
[SCI-FI LOGO] [STUDIO UNIVERSAL LOGO] GLOBAL FOOTPRINT
----------------
-----------------------------------
[UNIVERSAL TELEVISION AND NETWORKS LOGO] - 25 MLN MANAGED
CHANNEL SUBSCRIBERS
-----------------------------------
EXTENSIVE LIBRARY - 23 MLN JOINT VENTURE
----------------- CHANNEL SUBSCRIBERS
- 4,000 MOVIES --------------------------
- 24,000 TV EPISODES
-----------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 249
BLAIR WESTLAKE, CHAIRMAN
UNIVERSAL TELEVISION &
NETWORKS
[VIVENDI UNIVERSAL LOGO]
# # #
<PAGE> 250
[CANAL+ LOGO] PIERRE LESCURE
TV AND FILMS GROUP
PRESENTATION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 251
[CANAL+ 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> 252
[CANAL+ LOGO]
PIERRE LESCURE
EVI FULLENBACH
DENIS OLIVENNES
RICHARD LENORMAND
CANAL+ GROUP
[VIVENDI UNIVERSAL LOGO]
<PAGE> 253
[CANAL+ LOGO]
AGENDA
- CANAL+ GROUP
- KEY DEVELOPMENT STAGES
- THE CANAL+ BUSINESSES
- A CLOSE-UP ON PAY-TV
- KEY FINANCIALS
- UNIVERSAL STUDIOS GROUP
- VIVENDI UNIVERSAL'S TV AND FILMS DIVISION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 254
[CANAL+ LOGO]
CANAL+ TODAY:
A PAN-EUROPEAN MULTI-SERVICE TV OPERATOR
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
4 KEY DEVELOPMENT STAGES
---------------------------------------------------------------------------------------------------
1984 1992 1996 2000
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BUSINESS SCOPE Pay TV Pay TV Pay TV Multi-Service TV
---------------------------------------------------------------------------------------------------
TECHNOLOGY Analogue Analogue Digital Digital Interactive
---------------------------------------------------------------------------------------------------
COUNTRIES 1 4 5 11
---------------------------------------------------------------------------------------------------
TV OFFERINGS BY COUNTRY 1 15 34 100
---------------------------------------------------------------------------------------------------
DISTRIBUTION METHODS Single Multiple Multiple Multiple
---------------------------------------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 255
[CANAL+ LOGO]
CONSISTENTLY DELIVERING
STRONG GROWTH IN REVENUES
<TABLE>
<CAPTION>
CAGR +30%
<S> <C>
1985 (EUR) 87 m
1999 (EUR) 3,291 m
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 256
[CANAL+ LOGO]
EBITDA REFLECTING INVESTMENTS
IN NEW BUSINESSES
<TABLE>
<S> <C>
1985 (EUR) (52) m
1999 (EUR) 423 m
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 257
[CANAL+ LOGO] AGENDA
- CANAL+ GROUP
- KEY DEVELOPMENT STAGES
- THE CANAL+ BUSINESSES
- A CLOSE-UP ON PAY-TV
- KEY FINANCIALS
- UNIVERSAL STUDIOS GROUP
- VIVENDI UNIVERSAL'S TV AND FILMS DIVISION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 258
[CANAL+ LOGO]
AN ORGANISATION POSITIONED
ACROSS THE ENTIRE MEDIA VALUE CHAIN...
...GENERATING INTEGRATION BENEFITS AND STRENGTHENING EACH VERTICAL
<TABLE>
<CAPTION>
PRODUCTION DIGITAL TV
AND LIBRARIES PAY-TV INTERNET TECHNOLOGY
------------------ ----------------------- ------------------------- ----------------------
<S> <C> <C> <C>
- STUDIOCANAL - LARGEST EUROPEAN - CANALNUMEDIA - CANAL+ TECHNOLOGIES
PAY-TV OPERATOR
- 5,600 MOVIES - 11 COUNTRIES AND - PARTNERS WITH - 7 MILLION STBs
PLATFORMS VIZZAVI AND VNET DEPLOYED
- 6,000 TV HOURS - OVER 10 MILLION - OVER 30 WEB SITES - ACTIVE IN EUROPE,
SUBSCRIBERS/ US AND ASIA
OVER 14 MILLION
SUBSCRIPTIONS
- 2nd LIBRARY IN
EUROPE
------------------ ----------------------- ------------------------- ----------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 259
[CANAL+ LOGO]
CANAL+ GROUP DYNAMICS
<TABLE>
<CAPTION>
PRODUCTION AND PROGRAM DISTRIBUTION
RIGHTS LIBRARY PACKAGING
<S> <C> <C> <C>
CANAL+ TV (TERRESTRIAL, S
CHANNELS DTH, CABLE) U R
CONTENT B E
S V
- NEW FILMS INTERNET TECHNOLOGY C E
CONTENT R N
I U
- TV PROGRAMS THEMATIC PC OR MOBILE B E
CHANNELS (VIZZAVI) E S
NARROW/ R
BROADBAND
- LIBRARIES
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 260
[CANAL+ LOGO]
PRODUCTION AND RIGHTS LIBRARY
EUROPE'S SECOND LARGEST TELEVISION
AND MOVIE RIGHTS LIBRARY
<TABLE>
<CAPTION>
---------------------------- ------------------------ ---------------------- ------------------------ -----------------------
PRODUCTION AND CO-PRODUCTION THEATRICAL VIDEO/DVD TV MERCHANDISING
DISTRIBUTION DISTIBUTION DISTRIBUTION
<S> <C> <C> <C> <C>
----------------------------
FRANCE, UK, SPAIN, ITALY,
GERMANY
---------------------------- ------------------------ ---------------------- ------------------------ -----------------------
RIGHTS LIBRARY FRANCE FRANCE WORLDWIDE FRANCE
----------------------------
- 2nd LARGEST IN EUROPE UK UK - SALES TO : GERMANY
- 5,600 MOVIES GERMANY GERMANY - PREMIUM CHANNELS
- 6,000 HOURS OF SPAIN SPAIN - MINIPLAY
TV PROGRAMS
BENELUX BENELUX - BASIC
----------------------------
- OVER-THE-AIR
CHANNELS
---------------------------- ------------------------ ---------------------- ------------------------ -----------------------
ACQUISITIONS
-----------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 261
[CANAL+ LOGO]
PAY TELEVISION
THE LEADING PAY TV OPERATOR IN EUROPE
<TABLE>
<S> <C>
PRODUCTION DISTRIBUTION
---------------------------------- ------------------------------------------
- 14 Y CHANNELS - SATELLITE 42%
- 25 "IN HOUSE" THEMATIC - OVER-THE-AIR 44%
CHANNELS
- 15 KEY BRANDS - CABLE 14%
- 50 INTERACTIVE SERVICES
---------------------------------- ------------------------------------------
---------------------------------- ------------------------------------------
[CANAL+ LOGO] [CINE CINE MAS LOGO] [CANAL SATELLITE LOGO]
[TELE + LOGO] [CANAL JIMMY LOGO] [D + LOGO] [SATELITE CANAL DIGITAL LOGO]
[SEASONS LOGO] [CLASSICS LOGO] [CYFRA + LOGO] [CANALDIGITAL LOGO]
[PLANETE LOGO]
---------------------------------- ------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 262
[CANAL+ LOGO]
PAY TELEVISION
THE CANAL+ GROUP IDENTITY
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PREMIUM + THEMATIC + PLATFORM
--------------------------------------------------------------------------------
<S> <C> <C>
BLOCKBUSTER MOVIES CINEMA
SPORTS SPORTS
GENERAL ENTERTAINMENT CHILDREN
& NEWS DOCUMENTARIES
GENERAL ENTERTAINMENT
NEWS
MUSIC
--------------------------------------------------------------------------------
[CANAL+ LOGO] [EUROSPORT.COM LOGO] [CANAL SATELLITE LOGO]
[PLANETE LOGO]
[CLASSICS LOGO]
[I TELEVISION LOGO]
[CANAL JIMMY LOGO]
[SEASONS LOGO]
--------------------------------------------------------------------------------
INTERNATIONAL COMPARABLES
--------------------------------------------------------------------------------
[HBO + LOGO] [DISCOVERY CHANNEL LOGO] [ECHOSTAR LOGO]
[SHOWTIME LOGO] [NICKELODEON LOGO] [DIRECTV LOGO]
[ESPN LOGO]
[TCM LOGO]
--------------------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 263
[CANAL+ LOGO]
INTERNET: PARTNERING
WITH VIVENDINET TO EXPORT ON THE
WEB ALL OF CANAL+'S CONTENT AND BRANDS
<TABLE>
<CAPTION>
WEB PACKAGING OF MULTI FORMATING FOR
CONTENT BRANDED THEMATHIC MULTI DISTRIBUTION
SOURCING PORTALS/SITES
------------------------ ------------------------- ----------------------
<S> <C> <C>
- TV CHANNELS - SPORTS - PC
- RIGHTS
ACQUISITION - MOVIES - TV
- EVENTS
- Y-GENERATION - PDA
- CO-PRODUCTIONS
& PARTNERSHIPS
- CHANNELS - WAP/UMTS
- DATABASES
------------------------ ------------------------- ----------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 264
[CANAL+ LOGO]
TECHNOLOGY
A MAJOR PLAYER IN DIGITAL TECHNOLOGY
<TABLE>
<CAPTION>
INTERACTIVE
SYSTEM APPLICATIONS AND
DEVELOPMENT INTEGRATION RELATED BACK-OFFICE
-------------------------- ------------------------- --------------------------
<S> <C> <C>
- CONDITIONAL ACCESS - DIGITAL BROADCAST CENTER - DEVELOPMENT OF
SOFTWARE: INSTALLATION AND SUPPORT APPLICATIONS
MEDIAGUARD
- CABLE - AUTHORING TOOLS FOR THIRD
- INTERACTIVE TV SOFTWARE: - SATELLITE PARTIES (EUROPE, US, ASIA)
MEDIAHIGHWAY - TERRESTIAL
-------------------------- ------------------------- ---------------------------
-------------------------- ------------------------- ---------------------------
->SET-TOP BOX ->MORE THAN 20 NETWORK ->SOFTWARE HOUSES
MANUFACTURERS OPERATORS WORLDWIDE ->OPERATORS AND CHANNELS
-------------------------- ------------------------- ---------------------------
</TABLE>
----------------------------------------
- 7 MILLION STBS DEPLOYED
- 13 COUNTRIES IN OPERATION
- HALF OF THE CUSTOMERS OUTSIDE THE
GROUP INCLUDING:
ONDIGITAL (UK) ZEE TV (INDIA)
MEDIAONE (USA)
----------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 265
[CANAL+ LOGO]
A EUROPEAN FOCUS
IN ALL OUR BUSINESSES
[GRAPHIC]
<TABLE>
<CAPTION>
NORDIC
FRANCE ITALY SPAIN REGION BENELUX POLAND OTHERS
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PRODUCTION [X] [X] [X] [X] [X] [X] [X]
AND LIBRARIES
---------------------------------------------------------------
PAY-TV [X] [X] [X] [X] [X] [X] [X]
---------------------------------------------------------------
INTERNET [X] [X] [X] [X] [X] [X] [X]
---------------------------------------------------------------
TECHNOLOGY [X] [X] [X] [X] [X] [X] [X]
---------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 266
[CANAL+ LOGO]
AGENDA
- CANAL+ GROUP
- KEY DEVELOPMENT STAGES
- THE CANAL+ BUSINESSES
- A CLOSE-UP ON PAY-TV
- KEY FINANCIALS
- UNIVERSAL STUDIOS GROUP
- VIVENDI UNIVERSAL'S TV AND FILMS DIVISION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 267
[CANAL+ LOGO]
A PAN-EUROPEAN FOOTPRINT
14 MILLION SUBSCRIPTIONS IN 11 EUROPEAN COUNTRIES...
... AND SUBSTANTIAL UPSIDE POTENTIAL REMAINS WITH
A CANAL+ AVERAGE PENETRATION OF 11% OF TV HOMES
<TABLE>
<S> <C>
-------------------------------- --------------------------------
BENELUX NORDIC COUNTRIES
TOTAL TV HOMES: 11.1 MILLION TOTAL TV HOMES: 10.4 MILLION
CANAL+ GROUP PENETRATION: 6% [GRAPIC] CANAL+ GROUP PENETRATION: 6%
2-YR CAGR: 10.2% 2-YR CAGR: 25.1%
LAUNCH DATE: 1989 LAUNCH DATE: 1997
-------------------------------- --------------------------------
-------------------------------- --------------------------------
FRANCE POLAND
TOTAL TV HOMES: 22.3 MILLION TOTAL TV HOMES: 12.3 MILLION
CANAL+ GROUP PENETRATION: 24% CANAL+ GROUP PENETRATION: 3%
2-YR CAGR: 8.0% 2-YR CAGR: 62.3%
LAUNCH DATE: 1984 LAUNCH DATE: 1995
-------------------------------- --------------------------------
-------------------------------- --------------------------------
SPAIN ITALY
TOTAL TV HOMES: 12.3 MILLION TOTAL TV HOMES: 20.6 MILLION
CANAL+ GROUP PENETRATION: 15% CANAL+ GROUP PENETRATION: 7%
2-YR-CAGR: 22.3% 2-YR CAGR: 38.4%
LAUNCH DATE: 1990 LAUNCH DATE: 1997
-------------------------------- --------------------------------
--------------------------------
AFRICA
2-YR CAGR: 11.8%
LAUNCH DATE: 1991
--------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 268
[CANAL+ LOGO]
US/EUROPEAN MEDIA WORLDS
CANAL+ OPERATES IN A SIZEABLE MARKET.
EUROPE'S LOW CABLE PENETRATION CREATES A SOLID LEADERSHIP POSITION
<TABLE>
<CAPTION>
(99 YEAR END) TOTAL PAY TV CABLE SATELLITE OVER-THE-AIR
TVHH PENETRATION PENETRATION PENETRATION PENETRATION
(MIL) %
(AS A % OF TOTAL TVHH)
<S> <C> <C> <C> <C> <C>
CANAL+ MARKETS
--------------
FRANCE 22.3 36 13 10 13
ITALY 20.6 10 1 6 3
SPAIN 12.3 20 2 10 8
BENELUX 11.1 90 90
POLAND 12.3 36 34 2
NORDIC COUNTRIES 10.4 56 51 5
COMBINED 87.3 37 26 6 5
--------
CANAL+ MARKETS
--------------
USA 99.4 78 67 10 1
UK 23.9 32 13 17 2
GERMANY 33.4 64 61 3
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 269
[CANAL+ LOGO]
A GROWING SUBSCRIBER BASE
OVER 14 MILLION SUBSCRIPTIONS AS OF 30 JUNE 2000
(SUBSCRIPTIONS IN '000s)
[BAR GRAPH]
<TABLE>
<CAPTION>
CAGR: 15.5%
<S> <C>
1993 5,737
1994 6,407
1995 7,269
1996 8,214
1997 9,479
1998 11,618
1999 13,628
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 270
[CANAL+ LOGO]
CANAL+'S LOYAL SUBSCRIBER BASE:
LOWEST CHURN IN INDUSTRY
- 7 YEARS average subscription duration
(11 years in France)
[BAR GRAPH]
<TABLE>
<S> <C>
DIRECTV (US) 18.9%
ECHOSTAR (US) 15%
CANAL+ (EUROPE) 14.4%
BSKYB (UK) 10.5%
CANAL+ (FRANCE) 8.8%
</TABLE>
SOURCES: COMPANY AND EQUITY RESEARCH DATA
[VIVENDI UNIVERSAL LOGO]
<PAGE> 271
[CANAL+ LOGO]
DIGITAL SUBSCRIBER
GROWTH:+137% P.A. SINCE LAUNCH
4.5 million digital subscribers as of June 30, 2000
International
France
<TABLE>
<S> <C>
1996 220
1997 1,226
1998 2,543
1999 4,023
JUNE 2000 4,491
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 272
[CANAL+ LOGO] STRONG ARPU LEVERAGE...
Average Monthly Revenue Per Subscriber
...RESULTING FROM A MUCH LARGER PROGRAM AND SERVICES OFFERING ON DIGITAL
OMPARED TO ANALOGUE
<TABLE>
<CAPTION>
EURO 28 EURO 46
<S> <C> <C>
PREMIUM PAY-PER-VIEW
BASIC
PREMIUM
ANALOGUE DIGITAL
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 273
[CANAL+ LOGO]
AGENDA
- CANAL+ GROUP
- KEY DEVELOPMENT STAGES
- THE CANAL+ BUSINESSES
- A CLOSE-UP ON PAY-TV
- KEY FINANCIALS
- UNIVERSAL STUDIOS GROUP
- VIVENDI UNIVERSAL'S TV AND FILMS DIVISION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 274
[CANAL+ LOGO]
CONSOLIDATED REVENUES
BY BUSINESS SEGMENT
TOTAL 1999 = EURO 3,291 m
<TABLE>
<S> <C>
PAY TV 87%
FRANCE 64%
INTERNATIONAL 23%
PRODUCTION AND
RIGHTS LIBRARY 11%
OTHER ACTIVITIES 2%
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 275
[CANAL+ LOGO]
EBITDA
BY BUSINESS SEGMENT
TOTAL 1999 = EURO 423 m
<TABLE>
<S> <C>
PAY TELEVISION
FRANCE EURO 400 m
PAY TELEVISION
INTERNATIONAL EURO (157)m
PRODUCTION AND
RIGHTS LIBRARY EURO 178 m
OTHER ACTIVITIES EURO 2 m
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 276
[CANAL+ LOGO]
TELE+ :
STRONG UPSIDE POTENTIAL
STILL IN THE EARLY STAGE OF THE J CURVE OF THE PAY TV MODEL
M EURO
[BAR CHART]
Variable Costs
Fixed Costs
Revenues
[BAR CHART]
Subscriptions (000's)
EBITDA (M EURO)
- THE BOTTOM OF THE J CURVE HIT IN 2000
- BEGINNING OF THE UPSWING IN 2001
- BREAKEVEN IN 2003
[VIVENDI UNIVERSAL LOGO]
<PAGE> 277
[CANAL+ LOGO]
PROGRAMMING COSTS CONTAINMENT
- Output deals in 11 European countries with 3 to 6 of the 7 US major studios
- Agreements with the main sports federations (soccer, basketball, boxing,
rugby) in 11 European countries
[VIVENDI UNIVERSAL LOGO]
<PAGE> 278
[CANAL+ LOGO]
PROJECTED FINANCIALS
2000E
-------------------------------------------------------------
Individual subscriptions (in thousands)
FRANCE 7.0
INTERNATIONAL 8.2
-------------------------------------------------------------
(EURO millions)
REVENUES 3,650
-------------------------------------------------------------
EBITDA 420
-------------------------------------------------------------
CAPEX 740
-------------------------------------------------------------
[VIVENDI UNIVERSAL LOGO]
<PAGE> 279
<TABLE>
<CAPTION>
[CANAL+ LOGO]
NON CONSOLIDATED ASSETS
------------------------------------------------------------------------------------------------------------------------
OWNERSHIP SUBSCRIPTIONS 1999 1999
REVENUES EBITDA
------------------------------------------------------------------------------------------------------------------------
PAY-TV (30/6/00) (30/6/00) EURO EURO
MILLIONS MILLIONS
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NORDIC CANAL DIGITAL 50% 0.33M EURO 67 MIL EURO -29 MIL
SPAIN SOGECABLE 21% 1.79 491 66
PREMIUM 18% 0.90 254 -20
SOGECABLE
SATELLITE
POLAND TKP 33% 0.39 44 -18
CYFRA+ 33% 0.29 6 -19
------------------------------------------------------------------------------------------------------------------------
THEMATIC
------------------------------------------------------------------------------------------------------------------------
EUROSPORT FRANCE 39% 4.0 22 3
INTERNATIONAL 50% 32.1 153 14
MULTITHEMATIQUES 27% 18.1 118 -19
------------------------------------------------------------------------------------------------------------------------
TV
PROGRAMS
------------------------------------------------------------------------------------------------------------------------
EXPAND 29% - 17* 36*
------------------------------------------------------------------------------------------------------------------------
INTERNET
------------------------------------------------------------------------------------------------------------------------
CANEL 50% - 2* -16*
NUMEDIA
------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Figures for first half 2000
[VIVENDI UNIVERSAL LOGO]
<PAGE> 280
[CANAL+ LOGO] KEY BUSINESS DRIVERS
Quality of Product
Subscriber Base
Revenue Base ====> Strength of Brand
Growth ====>
ARPU ====> Analogue/Digital Conversion
Interactive Services
Own-production/Coproduction
Cost Programming ====> Acquisitions
Containment ====>
Subscriber ====> Churn Management
Acquisition
Competition
[VIVENDI UNIVERSAL LOGO]
<PAGE> 281
[CANAL+ LOGO]
KEY TRENDS FOR CANAL+ GROUP
- SUSTAINED GROWTH AND IMPROVING PROFITABILITY FOR THE COMING YEARS
- CASH FLOW BREAK-EVEN EXPECTED IN 2002
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
2000-02 CAGR
--------------------------------------------------------------------------------
<S> <C>
SUBSCRIPTIONS 10%
--------------------------------------------------------------------------------
REVENUES >10%
--------------------------------------------------------------------------------
EBITDA 35% to 40%
--------------------------------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 282
[CANAL+ LOGO]
AGENDA
- CANAL+ GROUP
- KEY DEVELOPMENT STAGES
- THE CANAL+ BUSINESSES
- A CLOSE-UP ON PAY-TV
- KEY FINANCIALS
- UNIVERSAL STUDIOS GROUP
- VIVENDI UNIVERSAL'S TV AND FILMS DIVISION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 283
[CANAL+ LOGO]
AGENDA
- CANAL+ GROUP
- KEY DEVELOPMENT STAGES
- THE CANAL+ BUSINESSES
- A CLOSE-UP ON PAY-TV
- KEY FINANCIALS
- UNIVERSAL STUDIOS GROUP
- VIVENDI UNIVERSAL'S TV AND FILMS DIVISION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 284
[CANAL+ LOGO]
CANAL+/UNIVERSAL: A NATURAL FIT
- 50% OF STUDIO REVENUES ARE GENERATED BY TV CHANNELS
- 40% OF TOTAL CHANNEL PROGRAMMING CONSISTS OF MOVIES
<TABLE>
<S> <C> <C> <C>
[UNIVERSAL LOGO] PRODUCTION/ PACKAGING
DISTRIBUTION CHANNELS
PROGRAMS
---------------------------------------------------------------------------------------------
CANAL+ PRODUCTION/ PACKAGING DISTRIBUTION
DISTRIBUTION CHANNELS PLATFORMS
PROGRAMS
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 285
[CANAL+ LOGO]
EXAMPLE: THEMATIC CHANNELS
A COMPLEMENTARY FOOTPRINTS
WITH POTENTIAL FOR GEOGRAPHIC EXPANSION
OVER 43 MILLION TV HOUSEHOLDS RECEIVE
CANAL+ AND UNIVERSAL THEMATIC CHANNELS
<TABLE>
<CAPTION>
CANAL+ GROUP [UNIVERSAL LOGO]
<S> <C> <C>
FRANCE X X
ITALY X X
SPAIN X X
BENELUX X
NORDIC REGION X
POLAND X
GERMANY X X
U.K. X
LATIN AMERICA X
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 286
[CANAL+ LOGO]
EXAMPLE: A POWERFUL COMBINATION
OF RIGHTS LIBRARIES
<TABLE>
<CAPTION>
[STUDIO CANAL LOGO] [UNIVERSAL LOGO]
<S> <C> <C> <C>
NUMBER OF TITLES 5,600 4,000
+
TV HOURS 6,000 24,000
</TABLE>
FILM LIBRARY BY COUNTRY OR ORIGIN
<TABLE>
<S> <C>
US 54%
EUROPE 45%
OTHER 1%
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 287
[CANAL+ LOGO]
CANAL+/UNIVERSAL: INTEGRATION
TO FUEL THE PAY-TV VIRTUOUS CIRCLE
SUBSCRIBER BASE
AND ARPU GROWTH
INCREASE CUSTOMER
INTEREST FOR
CANAL+/UNIVERSAL REVENUE GROWTH
PRODUCTS AND
SERVICES
DEVELOPMENT OF
CONTENT, NEW
PRODUCTS AND
INTERACTIVE SERVICES
[VIVENDI UNIVERSAL LOGO]
<PAGE> 288
[CANAL+ LOGO]
CANAL+/UNIVERSAL: INTEGRATION
FOR EFFICIENCY AND RATIONALISATION
<TABLE>
<CAPTION>
OPERATING COSTS PURCHASING IT OVERHEADS
EXAMPLES EXAMPLES EXAMPLES EXAMPLES
<S> <C> <C> <C>
Acquisitions: centralize - DVD, VHS - data center - Overlap VU/
program acquisitions teams CANAL+ Group
and align strategies - magazines - WAN
- Overlap CANAL+/
Technical operations: - PC Universal
consolidate broadcast and - print
TV "back-office" functions, - SAP - global reengineering
centralise sourcing of of systems processes
materials (film, - marketing - application and support
processing...), merge rights functions
and royalty management - travel developments
Distribution: consolidate - fleet
video and film distribution
efforts
Technology costs: use CANAL+
Technologies for Universal's
development in content
control and digital rights
management
Internet development costs:
sharing investments in content,
developing B-to-B extranet
using Universal model,
leverage CANAL+'s web
development infrastructures
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 289
[CANAL+ LOGO]
CANAL+/UNIVERSAL: INTEGRATION
FOR EFFICIENCY AND RATIONALISATION
<TABLE>
<S> <C> <C> <C>
OPERATING PURCHASING I.T. OVERHEADS
COSTS
COST SAVINGS OF EURO 60-80
MILLION P.A. OVER THE
NEXT THREE YEARS
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 290
[CANAL+ LOGO]
CANAL+/UNIVERSAL: INCREASING REVENUES
THROUGH CROSS-FERTILISATION
<TABLE>
<S> <C>
INCREASE EXISTING "IN-HOUSE" INTEGRATION OF
REVENUE STREAMS EXTERNALISED FUNCTIONS
EXAMPLES EXAMPLES
-------- --------
- Broadcasting: launch and - Studio: Universal Pictures
promote USG channels across all International Video to
CANAL+ platforms manage all CANAL+/USG
video distribution
- Studio: cross promote all USG
films, videos, and products across - Internet: CANAL NUMEDIA
CANAL+ subscriber base and to develop all USG web
media platforms (channels, sites
magazines...)
- Internet: develp e-commerce of
all CANAL+ and USG products
across all CANAL+ and USG
portals (ex. virtual theme park)
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 291
[CANAL+ LOGO]
CANAL+/UNIVERSAL: INCREASING
REVENUES THROUGH CROSS-FERTILISATION
ENHANCING IN-HOUSE
EXISTING INTEGRATION OF
REVENUES EXTERNALISED
FUNCTIONS
REVENUE INCREASES ESTIMATED AT AROUND
EURO 450 MILLION P.A. OVER THE NEXT FEW
YEARS GIVING AN EBITDA IMPACT IN THE
RANGE OF EURO 50 MILLION
[VIVENDI UNIVERSAL LOGO]
<PAGE> 292
[CANAL+ LOGO]
CANAL+/UNIVERSAL: CREATING NEW
BUSINESS AND NEW REVENUE STREAMS
EXAMPLE: CREATING A LEADING VIDEO ON DEMAND OPERATOR
<TABLE>
<S> <C> <C> <C>
CONTENT TECHNOLOGY DISTRIBUTION A LEADING VOD
OPERATOR
-------------------- --------------------------- ----------------- --------------------------
[STUDIO CANAL PHOTO] [VIZZAVI PHOTO] - IN 2005, BROADBAND
[UNIVERSAL PHOTO] [CANAL+ TECHNOLOGIES PHOTO] PENETRATION ESTIMATED
[HYPNOTIC PHOTO] AT 20-30% OF EUROPEAN
- ACCESS CONTROL CANAL+ AND TV HOMES AND 35% IN THE
- LIBRARY OF 9,600 - INTERACTIVE USG WEBSITES US; TOTAL VOD MARKET
MOVIES APPLICATIONS POTENTIAL OF $2.2 BN
- APPROX. 40 NEW - POTENTIAL MARKET
FILMS P.A. FROM SHARE OF 15-20% IN
WHICH 10 TO 15 EUROPE FOR CANAL+/
EUROPEAN FILMS UNIVERSAL'S VOD
PLATFORM
- SHORT FILMS --------------------------
LIBRARY
-------------------- --------------------------- -----------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 293
[CANAL+ LOGO] CANAL+/UNIVERSAL: CREATING
NEW BUSINESS
EXAMPLE: CREATING A LEADING MOVIE PORTAL FOR PROFESSIONALS AND CONSUMERS
<TABLE>
<S> <C> <C> <C>
CONTENT SERVICES DISTRIBUTION A LEADING MOVIE
PORTAL
-------------------- --------------------------- ---------------
[STUDIO CANAL PHOTO] - A UNIQUE
[UNIVERSAL PHOTO] [CANAL+ TECHNOLOGIES PHOTO] CANAL+ AND PROMOTION AND
USG SALES PLATFORM FOR
WEBSITES CANAL+/USG AND
VIVENDI UNIVERSAL
- ONE OF THE ALLOCINE.FR (UMG OR HAVAS)
WORLD'S MOST MEDIA PRODUCTS:
EXTENSIVE TICKETMASTER FILMS, VIDEOS,
AUDIOVISUAL DVDS, CDS...
RIGHTS
DATABASES - 3-YEAR TARGET OF 4
WORLDWIDE TO 5 MILLION
VISITORS IN EUROPE
-------------------- --------------------------- ---------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 294
[CANAL+ LOGO]
CANAL+/UNIVERSAL:
EXTENDING NEW MARKETS
VOD/PORTAL
[MAP GRAPHIC]
[CANAL+ PHOTO]
[UNIVERSAL PHOTO]
VOD/PORTAL
[VIVENDI UNIVERSAL LOGO]
<PAGE> 295
[CANAL+ LOGO]
INTEGRATION INTO VIVENDI UNIVERSAL:
THE MEDIA CROSS FERTILIZATION
- EXCHANGING CONTENT IS A KEY DRIVER OF REVENUE SYNERGIES
<TABLE>
<S> <C> <C>
MUSIC
CD SALES
PPV FEES MOVIE SOUNDTRACKS
TV ENTRANCE TICKETS THEME
TV AND SUBSCRIPTIONS REVENUE MERCHANDISING PARKS
FILMS RIGHTS STREAMS
ENTRANCE TICKET
SALES OF SPECIALIZED ADVERTISING
MAGAZINES
SALES OF VIDEO GAMES
PUBLISHING & INTERNET
ENTERTAINMENT
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 296
[CANAL+ LOGO]
CANAL+/UNIVERSAL NEW DISTRIBUTION TOOLS [VOD, VERTICAL PORTAL,...] TOGETHER
WITH NEW GENERATION OF SET TOP BOXES WILL GENERATE VALUE ENHANCING SYNERGIES.
[VIVENDI UNIVERSAL LOGO]
<PAGE> 297
[CANAL+ LOGO]
TODAY, EXISTING INTERACTIVE SERVICES
ALREADY ATTRACT SUBSCRIBERS
- 90 % OF SUBSCRIBERS USE INTERACTIVE SERVICES
- 66 % OF SUBSCRIBERS CONNECT THEIR SET-TOP-BOXES TO THE PHONE NETWORK
- 10 MILLION VISITS A MONTH TO THE INTERACTIVE WEATHER SERVICE
- 2.2 MILLION GAMERS A MONTH
- 1 MILLION PPV ORDERS A MONTH
- UP TO 25 BOUTIQUES OFFERED IN THE VIRTUAL MALL BEFORE THE END OF THE YEAR
- 25,000 BETTING ACCOUNTS ON HORSE RACES OPENED SINCE THE LAUNCH OF THE SERVICE
(MID-APRIL 2000)
[VIVENDI UNIVERSAL LOGO]
<PAGE> 298
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TOMORROW'S SET TOP BOX:A CATALYST
OF CONVERGENCE BETWEEN TV AND INTERNET
<TABLE>
<CAPTION>
<S> <C>
--------------------------- ----------------------------------
Specifications Display
------------------------------- ----------------------------------
- 2 input tuners - PC-type graphics
- Hard disk drive (30 Go) - High-quality TV(picture and
sound)
- Extended Memory (56 Mb)
- Simultaneous display of
- High-speed modem (56 K) graphics and video
-------------------------------
- 5 graphics panels:
background, still-picture,
video, graphic and cursor
----------------------------------
[VISA/AMERICAN EXPRESS PHOTO]
----------------------------------
Capabilities
----------------------------------
- Virtual Video on demand
------------------------------
Connectivity - Audio recording and replay
------------------------------
- PC and all peripherals - Time shifting/VCR
(printer, scanner, camera)
- Copyright protection
- Video and audio peripherals
(DVD, MP3, camcorders...)at - Interactive services
high speed
- Web acess and navigation
- ADSL Modem
------------------------------ - Secured payment
- Video games
----------------------------------
</TABLE>
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<PAGE> 299
<TABLE>
<CAPTION>
[CANAL+ LOGO]
NEW REVENUE STREAMS
FUELLING ARPU GROWTH
--------------------------- ------------------------------------------------------
<S> <C>
- Advertising banners
Advertising - Transaction fees on purchase leads
- Share of telephone airtime
--------------------------- ------------------------------------------------------
- Revenues from purchases
E-Commerce - Transaction fees (banking, betting...)
- Share of telephone airtime
--------------------------- ------------------------------------------------------
Audio, - Fees per program
VOD and Gaming - Usage time fees (network gaming)
- Share of telephone airtime
--------------------------- ------------------------------------------------------
- Incremental and monthly fees for access to some
Subscriptions interactive or Personal Video Recording services
--------------------------- ------------------------------------------------------
- Wholesale
- Retail
Consumer - PVRs
Appliances - Gaming consoles
- Interactive applications
--------------------------- ------------------------------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 300
[CANAL+ LOGO]
STRONG ARPU POTENTIAL
- REVENUES GENERATED FROM WALLED GARDEN AND THROUGH VIZZAVI SERVICES AND
PRODUCTS AVAILABLE ON THE G2 SET TOP BOXES, ESTIMATED AT AN ADDITIONAL
EURO 10-EURO 30 PER USER PER MONTH
<TABLE>
<CAPTION>
A RANGE OF 56 EURO TO 76 EURO
EURO 28 EURO 46
<S> <C> <C>
PREMIUM PAY-PER-VIEW G2
ANALOGUE BASIC PAY-PER-VIEW
PREMIUM BASIC
DIGITAL PREMIUM
</TABLE> MULTISERVICE
[VIVENDI UNIVERSAL LOGO]
<PAGE> 301
[CANAL+ LOGO]
INTEGRATION INTO VIVENDI UNIVERSAL:
INCREASING EXISTING REVENUES
<TABLE>
<CAPTION>
-------------------- -------------------- --------------- ------------------------
Multimedia Multi
publishing In-house Cross products
and Licensing talent pool Promotion Multi
distribution
-------------------- -------------------- --------------- ------------------------
<S> <C> <C> <C>
Movie Music artists Music Shelf space
(Music, Film, Sports)
Soundtrack Film production Sports
-------------------- VIZZAVI
Game Programming +
Animated and assets G 2 Set Top Box
Marchandising Characters --------------- (downloading and
Music, TV and storage)
New Park attractions Films Content +
(ex the Gladiator, Games Sub Magazine
Jurassic Park) TV theaters
-------------------- Prints + -----------------------
Coordination Web Multi product retailors
licensing for all Theme Park + (Packaging offers)
media Print
+
Parks
-------------------- -------------------- -------------- ------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 302
{CANAL+ LOGO]
INTEGRATION INTO VIVENDI UNIVERSAL:
NEW REVENUES AND BUSINESSES
<TABLE>
<CAPTION>
-------------------------------- ----------------------------------- ---------------------------------------
Customer loyalty International New products
expansion and services
-------------------------------- ----------------------------------- ---------------------------------------
-------------------------------- ----------------------------------- ---------------------------------------
<S> <C> <C>
- Export portals and ticketing - Virtual theme parks and
- Group wide program (clubs concepts Studios
foot, music, student) (Allo Cine-Movie - Sport) (games, Education, Picture)
- In-house products as --------------------- --------------------------------
rewards Europe + US Web
(CD - DVD) --------------------- --------------------------------
- Export Farm Club - Music, sports, games...
- Card Program Concept
(Sub + ticketing) (Canal+ VIZZAVI)
- Escalating discount for --------------------------------
multiple product --------------------- E commerce
Europe --------------------------------
--------------------- (Vizzavi+ Canalsat + canalplus.fr)
- Marchandising
Low churn rate close to ---------------------------------------
CANAL+ level ---------------------
-------------------------------- Europe + US
---------------------
-----------------------------------
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE> 303
[CANAL+ LOGO]
AN INTEGRATED COMPANY...
...bringing together the best of two worlds and
spanning 4 businesses
-----------------------
Vivendi-Universal
TV/Film Division
-----------------------
<TABLE>
<CAPTION>
-------------------- ------------------- ----------------------- ----------------------------
Production/library PAY TV Internet Technology
-------------------- ------------------- ----------------------- ----------------------------
<S> <C> <C> <C>
[UNIVERSAL LOGO] [13TH STREET LOGO] [UNIVERSALONLINE*COM LOGO]
[STUDIO UNIVERSAL
LOGO]
[SCI-FI LOGO]
------------------------------------------------------------------------------------------------
[STUDIO CANAL LOGO] [CANAL+ LOGO] [CANAL E LOGO] [CANAL+ TECHNOLOGIES LOGO]
[CLASSICS LOGO]
[SEASONS LOGO]
[PLANETE LOGO]
[CANAL JIMMY LOGO]
[I TELEVISION LOGO]
</TABLE>
[VIVENDI UNIVERSAL LOGO
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