Filed by Vivendi Universal
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
December 4, 2000
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[VIVENDI UNIVERSAL LOGO]
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Jean Marie Messier
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CSFB Conference
December 4, 2000
New York
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VIVENDI UNIVERSAL
Jean Marie Messier
Chairman and Chief Executive Officer
TABLE OF CONTENT
- Mission statement
- Our vision
- Vivendi Universal, a growth story
- Key asset for convergence: Vizzavi
- A unique opportunity
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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 because it contains important information. The
joint proxy statement/ prospectus was 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 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.
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MISSION STATEMENT
Vivendi Universal is a consumer-focused,
performance-driven, values-based global media and
communications company.
Our Vision is to be the world's preferred
creator and provider of personalized information, entertainment and
services to consumers anywhere, at anytime, and across
all distribution platforms and devices.
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OUR VISION
THE ERA OF DIGITAL CONVERGENCE
- The convergence is consumer-driven.
- Rich and personalized content - personalization must be easy
- Multi-accessibility - localized services
- 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
- Content producers at an advantage
- Built-in customization at early development stages
- Knowledge of customer
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OUR VISION
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
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OUR VISION
NOW IS THE TIME
- Technology is locking up the market:
- Limited number of Mobile and i-TV operators
- Investment beyond the start-up financing power
- New markets are being constantly created (e.g. new devices)
- Market shares crystallize rapidly: time to market is essential to implement
new business models
- Control of margins along the value-production chain between content
producers, aggregators, in-house and external distributors
- No time wasted in profit-sharing and co-branding discussions: one P&L, one
Global Brand
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VIVENDI UNIVERSAL
A growth story
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VIVENDI UNIVERSAL
A GROWTH STORY
- Vivendi Universal will have all the key drivers for value creation in the
global media world
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
|
|
Key | New Scale Global Brands Bundling Vertical
driver | revenue & Scope footprint integration
| streams
|
-------------------------------------------------------------------------------------------------------
|
Seagram | X-XX X-XX 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>
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| 0 = no or low X = average XX = good |
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- ...and growth capacities
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VIVENDI UNIVERSAL
A GROWTH STORY
- Vivendi Universal on same footing as main competitors:
- in a position to negotiate with third parties of equivalent size:
- to share distribution channels;
- to secure access to additional content;
- Unique leading prominent position in Europe - gateway for US-centric partner:
- Europe is not developing into a PC-centric world;
- Mobile telephony and interactive TV are key to European landscape;
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VIVENDI UNIVERSAL
A GROWTH STORY
- Growth potential only marginally dependent on advertising market
- Exposed divisions
- Publishing: specific segments (e.g. job ads, direct marketing on
Flipside) less affected by slow-down than rest of sector
- certain Web properties: overall weighting very low
- Canal +: regulatory constraints on pay-TV model stringently limit
revenues derived from advertising
- Advertising revenues estimated at approx. 5% of total communication revenues
for new group
- Potential beneficial side aspects
- Promotion expenses for Music and Films to benefit from less tensed
advertising market
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VIVENDI UNIVERSAL
A GROWTH STORY
- Content : consistent growth + strong cash flow generation
- Access : rapid growth + fixed costs = strong EBITDA leverage
- Aggregation : new revenue streams
+
Synergies : costs and revenues
=
extraordinary growth...
...and attractive risk profile: earnings
predictibilty through solid assets with strong
brands
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VIVENDI UNIVERSAL
A GROWTH STORY
<TABLE>
<S> <C> <C> <C> <C>
Figures in billion euros Revenues 2000e EBITDA 2000e Revenues CAGR EBITDA CAGR
Objective Objective
2000-2002e 2000-2002e
-------------------- ------------------ ------------------ -----------------
Publishing 3.5 0.5 6% >=10%
Music 6.6 1.1 6% 12%
Telecom 5.8 1.3 18% >=35%
Internet 0.03 (0.1) nm nm
Pay-TV 4.0 0.4 10% >35%
Filmed Ent. & Recreation 4.6 0.3 7% >10%
Holding 0.0 (0.3) nm nm
Revenues Synergies +1,000M[EUROS](1) +220M[EUROS](1)
Costs Synergies - +440M[EUROS](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%)
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VIVENDI UNIVERSAL
A GROWTH STORY
<TABLE>
<S> <C> <C> <C> <C>
Figures in Revenues CAGR EBITDA CAGR
billion Revenues EBITDA Objective Objective
euros 2000e 2000e 2000-2002e 2000-2002e
---------- ---------- -------- ------------- -----------
Access 9.8 1.8 >15% >35%
Content 14.7 1.9 6 - 7% 12%
Aggregation 0.03 (0.1) >100% nm
Holding 0.0 (0.3) nm nm
Synergies +1,000ME(1) +660ME(1)
---------- -------- ------------- -----------
Total VU excluding VE 24.6 3.2 10% 35%
and non-core
</TABLE>
Assuming constant perimeter and constant number of shares,
growth of EBITDA per share for the communication division in line: +35% p.a.
EPS before goodwill to be impacted by exceptional items (inc. disposals)
(1) In 2002, on a proportional basis
(2) Vivendi owns 250.6m of VE shares (72%)
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VIVENDI UNIVERSAL: A GROWTH STORY
TARGET REVENUE SYNERGIES IN MILLIONS [EUROS]
- Total identified synergies only
2002
----
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
----
------------------------------------------------ >=400
| TOTAL EBITDA 220 |---------> in 2003
------------------------------------------------
Synergistic approach across all divisions
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VIVENDI UNIVERSAL: A GROWTH STORY
TARGET COST SYNERGIES IN MILLIONS [EUROS]
Adressable Target Savings
costs 2002
----------------- ---------
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
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+ Spirits' divestiture savings / non absorbed Seagram's costs(30)
+ Non recurring items at Vivendi 60
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Total EBITDA impact 420
Non EBITDA recurring 50
Investment savings 80
Total Cash Flow impact 550
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VIVENDI UNIVERSAL
Key asset for digital convergence:
[VIZZAVI LOGO]
[VIVENDI UNIVERSAL LOGO]
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PIONEERING EUROPEAN MULTI-ACCESS
[VIZZAVI LOGO]
- Creating the first fully multi-access portal competing against
more PC-centric portals
- Seamless access (and file-sharing) through mobile telephones (and
PDAs), interactive television sets and PCs
- Emphasis on Mobile and I-TV crucial in European context
- Vivendi Universal + Vodafone = mobile coverage for 15 European countries + TV
access to 11 countries = potential reach of 100m customers within 2 years
- Vivendi Universal preferred content provider (not exclusive)
...to achieve leading position within next 3 years
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PIONEERING EUROPEAN MULTI-ACCESS
[VIZZAVI LOGO]
- Key terms
- 50/50 joint-venture between Vodafone and Vivendi formed on May 17,
2000
- Minority stakes (~20%) in national Vizzavi subsidiaries held by
mobile and pay-TV operators
- Revenue-sharing: Vizzavi keeps 50% of the gross margin from content,
advertising and e-commerce revenues
- After 2 years, revenue-sharing reviewed country-by-country according
to market conditions
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PIONEERING EUROPEAN MULTI-ACCESS
[VIZZAVI LOGO]
- Emphasis on revenue streams directly from
consumers vs. advertisers
- Requires investment in billing systems and fundamental
re-evaluation/creation of portal pricing models (pay per
subscription, pay per event, etc.)
- Near term, revenue will be driven by advertisers
- Emphasis on mobile economics vs. PC economics
- Even PC economics are changing - emergence of fee based models
... a majority of revenues to be derived from
content-related sales (subscriptions, etc.)
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PIONEERING EUROPEAN MULTI-ACCESS
[VIZZAVI LOGO]
- Financials
- 2001-2002 cumulative investment: [EURO]1.2/1.6bn(*)
- Combined amount for EBITDA losses and Capex
- Major components:
- Marketing costs (1/2 to 1[EURO] per pop p.a.)
- Overheads
- Technology acquisition
- Acquisition of existing portal assets
- EBITDA break-even expected by year end 2003 (monthly basis)
- ARPU target: several [EURO] per months on a majority of the
combined current mobile customer base (VU/Vodafone)
- Economies of scale and scope (e.g. content acquisition)
*: depending on cash-burn and IPO timing - Vivendi's share=50%
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KEY DIFFERENTIATORS
[VIZZAVI LOGO]
- First-mover advantage
- Multi-accessibility
- Common default portal across range of devices
- Unified messaging centre (voice- and e-mails)
- Close cooperation with access providers
- Localised services
- Direct and detailed billing through access companies
- Integrated post-sale services and customer care
- Joint marketing approach to new devices (e.g. PDAs with mobile phone
access)
- Thematic channel approach
- Leverage on Vivendi Universal contents (e.g. Games, Music)
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STATUS UPDATE
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- Continued aggressive recruitment since May 2000
- Senior positions filled
- 500+ total, recruited from sources including Chello, mViva, T-motion,
BT Genie, ONDigital, AOL
- Solid progress on Vizzavi Europe platform development
- Key content in place - User interface defined - Hosting center
established
- Technology integration and testing underway
- Aggressive rollout of the new PC/Mobile platform
- UK: Q4 2000
- Germany and Italy (upgrade in France): Q1 2001
- Netherlands and Spain: Q2 2001
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VIVENDI UNIVERSAL
Conclusion
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VIVENDI UNIVERSAL
A UNIQUE OPPORTUNITY
- Markets
- Intrinsic Growth and visibility
- Multiple contents and accesses
- Consistent mix of businesses/vertical integration
- 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: revs. = + 10% pa; EBITDA = +35% pa
- Strong cash flow generation
- Deleveraged balanced sheet
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