Filed by Vivendi
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: The Seagram Company Ltd.
Commission File No. 1-2275
and
Subject Company: Canal Plus S.A.
Commission File No. 82-2270
October 12, 2000
GUILLAUME HANNEZO
FINANCIALS
[VIVENDI UNIVERSAL LOGO]
<PAGE>
IMPORTANT LEGAL DISCLAIMER
- These documents contain forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These statements are based on management's current
expectations or beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The forward-looking
statements contained in these documents address the following subjects:
expected date of closing the merger; future financial and operating
results; and timing and benefits of the merger. The following factors,
among others, could cause actual results to differ materially from those
described in the forward-looking statements: the risk that the Vivendi,
Canal+'s and Seagram's businesses will not be integrated successfully;
costs related to the merger; failure of the Vivendi, Canal+ or Seagram's
stockholders to approve the merger; inability to further identify, develop
and achieve success for new products, services and technologies; increased
competition and its effect on pricing, spending, third-party relationships
and revenues; inability to establish and maintain relationships with
commerce, advertising, marketing, technology, and content providers.
Investors and security holders are urged to read the joint proxy
statement/prospectus regarding the business combination transaction
referenced in the foregoing information, when it becomes available, because
it will contain important information. The joint proxy statement/prospectus
will be filed with the Securities and Exchange Commission by Vivendi,
Canal+ and Seagram. Investors and security holders may obtain a free copy
of the joint proxy statement/prospectus (when it is available) and other
documents filed by Vivendi, Canal+ and Seagram with the Commission at the
Commission's web site at www.sec.gov. The joint proxy statement/prospectus
and these other documents may also be obtained for free from Vivendi,
Canal+ and Seagram. Information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, is contained in the joint press release
relating to the transaction filed with the Commission by each of Vivendi
and Seagram, on June 20, 2000.
[VIVENDI UNIVERSAL LOGO]
<PAGE>
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>
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>
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>
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>
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>
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>
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>
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>
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>
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>
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>
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>
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>
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>
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>
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]
