Vivendi Announces Excellent 2006 Results, Adjusted Net Income Up 18% to EUR 2.6 Billion





    --  Adjusted net income(1): EUR 2.6 billion, a 17.9% increase,
representing an adjusted net income per share of EUR 2.27

    --  Earnings, attributable to equity holders of the parent: EUR 4
billion, an increase of 27.9%

    --  Adjusted earnings before interest and income taxes(2) (EBITA): EUR
4.4 billion, an increase of 9.6% on a comparable basis(3), due to the good
performance of all business units

    --  Proposed dividend of EUR 1.20 per share, up 20%, representing a
distribution rate of 53% of adjusted net income

    --  2007 Outlook: adjusted net income is expected to be at least EUR 2.7
billion

    PARIS, March 7 /CNW/ - Note: This press release contains consolidated
earnings established under IFRS. Vivendi has made changes, as of June 30 2006,
to the presentation of its consolidated statement of earnings and its
consolidated statement of cash flows as well as the operating performances of
its business units and of the Group. Those changes are detailed in Appendix I.

    Comments by Jean-Bernard Levy, Chairman of Vivendi's Management Board:
"In 2006, we exceeded our objectives, and I am pleased to announce an adjusted
net income of EUR 2.6 billion. This is the best result ever achieved by
Vivendi. It is all the more outstanding since almost half of the exceptional
cost relating to the Canal+/TPS transaction was taken into account during the
2006 fiscal year. Our shareholders will benefit from these excellent results:
we will propose at the Annual General Meeting of Shareholders that a dividend
of EUR 1.20 per share be paid. This represents an increase of 20% and a
distribution rate of 53% of adjusted net income.

    In accordance with our strategy, we have developed our business units and
invested. The combination of Canal+ and TPS has resulted in the creation of
the largest European pay-TV platform by number of subscribers. We intend to
strengthen UMG with the planned acquisition of BMG's music publishing
business, thus creating the world leader in music publishing. Parallel to
these two major transactions, all the Group's business units have continued to
strengthen their positions and to develop innovative products that meet the
expectations of consumers.

    Vivendi has formidable advantages: its teams' unique know-how in
innovation, technology and marketing, the trust of millions of subscribers
worldwide and its exceptional position in the entertainment field, at the
heart of the digital, mobile and broadband markets.

    In 2007, we expect to exceed the records set in 2006, despite the
exceptional charges associated with the creation of Canal+ France and French
regulations in the mobile sector. I also confirm our target for 2011: adjusted
net income of between EUR 3.5 billion and EUR 4 billion."

    2006 Dividend

    At the shareholders meeting on April 19, 2007, the distribution of a
dividend of EUR 1.20 per share based on 2006 earnings (compared to a dividend
of EUR 1 per share in 2005) will be proposed, representing a distribution rate
of 53% of adjusted net income.

    This shareholder distribution will amount to approximately EUR 1.4
billion and payable on April 26, 2007.

    Comments on Vivendi's Main 2006 Financial Indicators

    Revenues increase to EUR 20,044 million compared to EUR 19,484 million in
2005, representing an increase of EUR 560 million (2.9%). On a comparable
basis, revenues amount to EUR 20,007 million compared to EUR 19,374 million in
2005, representing an increase of 3.3% (3.3% at constant currency).

    EBITA totals EUR 4,370 million compared to EUR 3,985 million in 2005. On
a comparable basis, EBITA increased by EUR 381 million to EUR 4,369 million,
representing an increase of 9.6% (9.7% at constant currency), compared to EUR
3,988 million in 2005. In 2006, with the exception of the Canal+ Group, each
business unit achieved growth in its operations. Excluding the cost of the
Canal+ Group and TPS combination (of which EUR 177 million was accounted for
in 2006) and on a comparable basis, the Canal+ Group would also have recorded
positive growth of 21.8% over 2005. EBITA margin increased by 1 .3 percentage
points, from 20.5% in 2005 to 21 .8% in 2006.

    Income from equity affiliates totals EUR 337 million compared to EUR 326
million in 2005, representing an increase of EUR 11 million. The fall in net
income from NBC Universal (EUR 301 million compared to EUR 361 million in
2005) is more than offset by the increase in income from Neuf Cegetel (net
income of EUR 38 million compared to a net loss of EUR 50 million in 2005).

    Other financial charges and income generate net income of EUR 311 million
compared to EUR 619 million in 2005, a decrease of EUR 308 million. In 2006,
this line item mainly includes the capital gain on the sale of Veolia
Environnement shares (EUR 832 million), offset by the capital loss incurred on
the write-off of the PTC shares (EUR 496 million). In 2005, it mainly included
the capital gain realized on the exchange of Sogecable shares (EUR 256
million) as part of the repayment of convertible bonds and the positive impact
of the unwinding of IAC/InterActiveCorp's investment in VUE (EUR 194 million).

    Income tax amounts to a net income of EUR 547 million, compared to a net
charge of EUR 204 million in 2005. The income taxes recorded in 2006 include,
in particular, the gain related to the settlement of the DuPont litigation
(EUR 1,082 million), as well as tax savings generated by the Consolidated
Global Profit Tax System (EUR 561 million compared to EUR 595 million in
2005).

    Earnings, attributable to equity holders of the parent, amount to EUR
4,033 million (representing basic earnings per share of EUR 3.50 and EUR 3.47
on a diluted basis), compared to EUR 3,154 million in 2005 (representing basic
earnings per share of EUR 2.74 and EUR 2.72 on a diluted basis), an increase
of 27.9%.

    Adjusted net income amounts to EUR 2,614 million (representing basic
adjusted earnings per share of EUR 2.27 and EUR 2.25 on a diluted basis),
compared to EUR 2,218 million in 2005 (representing basic adjusted earnings
per share of EUR 1.93 and EUR 1.91 on a diluted basis), an increase of 17.9%.

    The difference between earnings, attributable to equity holders of the
parent, and adjusted net income was EUR 1,419 million, and mainly includes the
gain resulting from the settlement of the dispute concerning the DuPont shares
(EUR 984 million which is comprised of the gain related to the settlement of
the litigation, due to the net reversal of deferred tax liabilities in the
amount of EUR 1,082 million, partially offset by capital losses incurred on
the sale of the DuPont shares in the amount of EUR 98 million.) and the
capital gain generated on the sale of Veolia Environnement shares (EUR 832
million), offset by the capital loss incurred on PTC shares (EUR 496 million).

    Cash flow from operations (CFFO) before capital expenditures amounts to
EUR 6,111 million, versus EUR 5,448 million in 2005, representing an increase
of 12.2%.

    Despite a strong growth of the capital expenditures net, increasing 27.4%
to EUR 1,645 million, CFFO generated by the business units amounts EUR 4,466
million, compared to EUR 4,157 million in 2005, representing a 7.4% increase.

    Vivendi's Business Units: Comments on 2006 EBITA

    Universal Music Group

    Universal Music Group's (UMG's) EBITA of EUR 744 million is 9.3% higher
than last year, up 10.2% on a constant currency basis. Improved margins on
higher sales, legal settlements and the recovery of a previously expensed cash
deposit in the TVT matter offset increased marketing, artist and repertoire
(A&R) costs of local artists.

    Bestsellers for the year include new releases from U2, Andrea Bocelli,
Snow Patrol, Nelly Furtado and The Killers in addition to strong carryover
sales from The Pussycat Dolls.

    Canal+ Group

    Canal+ Group's EBITA grew sharply to EUR 251 million, excluding
transition costs linked to the TPS merger. On a comparable basis(4), EBITA is
up 21.8% compared with 2005. After taking into account transition costs
amounting to EUR 177 million, EBITA totals EUR 74 million.

    On a comparable basis, pay-TV operations in France posted a 46% increase
in EBITA year-on-year, excluding transition costs. This strong performance was
achieved due to portfolio growth and increased revenue per subscriber,
combined with reduced subscriber acquisition costs, and despite higher soccer
costs (up EUR 143 million versus 2005). The Group's other operations were
slightly down due to non-recurring items in Poland in 2005 and the switch of
i(greater than)tele to free-to-air broadcasting, which was not completely
offset by positive results at StudioCanal.

    SFR

    SFR's EBITA rose 6.6% to EUR 2,583 million. EBITA margin was 29.8%.
Excluding the impact of ADSL operations development costs, SFR's EBITA growth
reached 7.3%. Excluding non-recurring items(5), SFR's EBITA (excluding ADSL)
growth would have been 2.4%.

    This growth mainly reflects a 0.4% growth in network revenues, a 0.7
percentage point reduction in customer acquisition and retention costs to
10.9% of network revenues, as well as a strict control of other costs, and
despite the increase of the GSM license cost (renewed in April 2006 with a new
tax of 1% of revenues) and an increase in depreciation costs following several
years of strong investments to increase coverage and capacity of SFR's 2G and
3G/3G+ networks.

    Maroc Telecom

    Maroc Telecom's EBITA amounts to EUR 912 million, increasing by 16% (up
15.8% at constant currency).

    This performance resulted from growth in revenue (10.2% at constant
currency), control of acquisition costs in the context of steady growth of the
mobile(6) (7)and ADSL(6) customer base, as well as control of operational
expenses. This outcome also includes a EUR 30 million provision for a new
voluntary departure plan (comparable to the provision accrued in 2005).

    Mobile EBITA amounts to EUR 627 million in 2006 increasing by 28.3% (up
28.1% at constant currency).

    Fixed telephony and internet EBITA totals EUR 285 million in 2006
decreasing by 4.1% (down 4.4% at constant currency).

    Vivendi Games

    Vivendi Games' EBITA of EUR 115 million is 109% above the prior year
(same increase on a constant currency basis). This significant improvement was
driven by growth in revenues, with a large proportion relating to the higher
margin of the World of Warcraft's exceptional worldwide success. EBITA is also
impacted by expenses linked to the launches of the new Sierra Online and
Vivendi Games Mobile divisions.

    Vivendi Games' performers in 2006 included World of Warcraft as well as
new releases Scarface: The World is Yours, Ice Age 2, The Legend of Spyro: A
New Beginning, Eragon, and F.E.A.R. (for Xbox 360).

    Important disclaimer

    This press release contains forward-looking statements with respect to
the financial condition, results of operations, business, strategy and plans
of Vivendi. Although Vivendi believes that such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance. Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many of which
are outside our control, including, but not limited to the risk that Vivendi
will not be able to obtain the necessary regulatory approvals in connection
with certain transactions as well as the risks described in the documents
Vivendi filed with the Autorite des Marches Financiers (French securities
regulator) and which are also available in English on our web site
(www.vivendi.com). Investors and security holders may obtain a free copy of
documents filed by Vivendi with the Autorite des Marches Financiers at
www.amf-france.org, or directly from Vivendi. The present forward-looking
statements are made as of the date of the present press release and Vivendi
disclaims any intention or obligation to provide, update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

    (1) Adjusted net income, is detailed in Appendix V.

    (2) Adjusted earnings before interest and income taxes (EBITA) are
detailed in Appendix I.

    (3) Comparable basis is detailed in Appendix III.

    (4) The comparable basis mainly illustrates the effect of divestitures at
Canal+ Group (mainly NC Numericable in 2005 and PSG in 2006), as if these
transactions had occurred as of January 1, 2005.

    (5) 2005 EBITA included the recording of EUR 115 million of adverse non
recurring items: the impact of the EUR 220 million fine from French Antitrust
Council being partly offset by the registering of favorable non recurring
items amounting to EUR 105 million.

    (6) Excluding Mauritel.

    (7) The mobile customer base, compliant with the ANRT definition and used
by Maroc Telecom in 2006, includes prepaid customers leaving or receiving a
voice call during the last 3 months and not cancelled postpaid customers.

    
    PRESS CONFERENCE
    Speakers:
              Jean-Bernard Levy
              Chairman of the Management Board
              Jacques Espinasse
              Member of the Management Board and Chief Financial Officer

    Date:     Wednesday, March 7, 2007
              10:30 AM Paris time - 9:30 AM London time - 
              4:30 AM New York time

    Address:  Vivendi Head Office, 42 Avenue de Friedland, 75008 Paris

    Internet: The conference can be followed on the Internet at
              http://www.vivendi.com

    ANALYST CONFERENCE
    Speakers:
              Jean-Bernard Levy
              Chairman of the Management Board
              Jacques Espinasse
              Member of the Management Board and Chief Financial Officer

    Date:     Wednesday, March 7, 2007
              2:30 PM Paris time - 1:30 PM London time -
              8:30 AM New York time
              Media invited on a listen-only basis

    Numbers to dial:
              Number in France: +33 (0)1 70 99 43 04
              Number in UK: +44 (0)20 7806 1966
              Number in US: +1 718 354 1390 and 888 935 4575 (toll-free)

    Replay details (replay available for 14 days)
              France: +33 (0) 1 71 23 02 48
              UK: +44 (0) 20 7806 1970
              US: +1 718 354 1112 and 1 866 239 0765 (toll-free)
              Access code: 4283269#

    Internet: The conference can be followed on the Internet at
              http://www.vivendi.com/ir

    The slides for the presentation will also be available online.

    

    
                                  APPENDIX I

                                   VIVENDI
    ADJUSTED STATEMENT OF EARNINGS FOR THE QUARTER ENDED AND THE FULL YEAR
              THEN ENDED DECEMBER 31, 2006 AND DECEMBER 31, 2005
                                    (IFRS)


                                           4th         4th
                                          Quarter     Quarter     %
                                          2006        2005    variation
                                         ------------------------------
    Revenues                               5,545       5,479        +1%
    Cost of revenues                      (3,162)((*))  (2,910)       -9%((*))
                                         ------------------------------
    Margin from operations                 2,383 ((*))   2,569        -7%((*))
    Selling, general and administrative
     expenses excluding amortization of
     intangible assets acquired through
     business combinations                (1,646)     (1,720)
    Restructuring charges and other
     operating charges and income            (15)        (60)

    EBITA                                    722         789        -8%
    EBITA/Revenues                          13.0%       14.4%  -1,4 pt

    Income from equity affiliates             92         101
    Interest                                 (42)        (51)
    Income from investments                    3          19
                                         --------------------
    Earnings from continuing operations
     before provision for income taxes       775         858       -10%
    Provision for income taxes               (34)       (253)

    Adjusted net income before
     minorities                              741         605       +22%

    Minority interests                      (236)       (200)

    Adjusted net income ((xx))                 505         405       +25%
                                         ------------------------------
    ANI/Revenues (%)                         9.1%        7.4%

    Adjusted net income per share -
     basic                                  0.44        0.35       +26%
    Adjusted net income per share -
     diluted                                0.43        0.35       +23%
    

    

                                       Full Year    Full Year     %
                                         2006         2005    variation
                                       --------------------------------
    Revenues                             20,044       19,484        +3%
    Cost of revenues                    (10,146)((*))   (9,898)       -3%((*))
                                       --------------------------------
    Margin from operations                9,898 ((*))    9,586        +3%((*))
    Selling, general and
     administrative expenses excluding
     amortization of intangible assets
     acquired through business
     combinations                        (5,533)      (5,568)
    Restructuring charges and other
     operating charges and income             5          (33)

    EBITA                                 4,370        3,985       +10%
    EBITA/Revenues                         21.8%        20.5%  +1,3 pt

    Income from equity affiliates           337          326
    Interest                               (203)        (218)
    Income from investments                  54           75
                                       ----------------------
    Earnings from continuing
     operations before provision for
     income taxes                         4,558        4,168        +9%

    Provision for income taxes             (777)        (876)

    Adjusted net income before
     minorities                           3,781        3,292       +15%

    Minority interests                   (1,167)      (1,074)

    Adjusted net income ((xx))              2,614        2,218       +18%
                                       --------------------------------
    ANI/Revenues (%)                       13.0%        11.4%

    Adjusted net income per share -
     basic                                 2.27         1.93       +18%
    Adjusted net income per share -
     diluted                               2.25         1.91       +18%
    

    In millions of euros, per-share amounts in euros.

    ((*)) Including transition costs associated with the CANAL+ / TPS merger
for an amount of EUR 177 million.

    ((xx)) A reconciliation of earnings, attributable to equity holders of
the parent to adjusted net income is available in the Appendix V.

    Vivendi Management evaluates the performance of the business segments and
allocates necessary resources to them based on certain operating indicators
(segment earnings and cash flow from operations). Until June 30, 2006, segment
earnings corresponded to earnings from operations of each business. As of June
30, 2006, earnings from operations (EFO) were replaced by adjusted earnings
before interest and income taxes (EBITA). The difference between EBITA and
previously published EFO consists of the amortization of intangible assets
acquired through business combinations that is excluded from EBITA.

    As a result, the definition of adjusted net income has been modified to
exclude the amortization of intangible assets acquired through business
combinations, as is presently the case for impairment losses of goodwill, or
other intangibles acquired through business combinations, that have always
been excluded. The reconciliation of earnings, attributable to equity holders
of the parent to adjusted net income is available in the Appendix V.

    
                                APPENDIX II

                                  VIVENDI
     CONSOLIDATED STATEMENT OF EARNINGS FOR THE QUARTER ENDED AND THE
        FULL YEAR THEN ENDED DECEMBER 31, 2006 AND DECEMBER 31, 2005
                                  (IFRS)


                                   4th Quarter    4th Quarter     &
                                      2006           2005     variation
                                   ------------------------------------

    Revenues                            5,545          5,479        +1%
    Cost of revenues                   (3,162)((*))     (2,910)       -9%((*))
                                   ------------------------------------
    Margins from operations             2,383 ((*))      2,569        -7%((*))
    Selling, general and
     administrative expenses
     excluding amortization of
     intangible assets acquired
     through business combinations     (1,646)        (1,720)
    Restructuring charges and
     other operating charges and
     income                               (15)           (60)
    Amortization of intangible
     assets acquired through
     business combinations                (56)           (65)
    Impairment losses of
     intangible assets acquired
     through business combinations          -            (16)

    EBIT                                  666            708        -6%

    Income from equity affiliates          92            101
    Interest                              (42)           (51)
    Income from investments                 3             19
    Other financial charges and
     income                                93            348
                                   --------------------------
    Earnings from continuing
     operations before provision
     for income taxes                     812          1,125       -28%
    Provision for income taxes             29            333
                                   --------------------------
    Earnings from continuing
     operations                           841          1,458       -42%
    Earnings from discontinued
     operations                             -            (15)

    Earnings                              841          1,443       -42%

    Minority interests                   (231)          (192)

    Earnings, attributable to
     equity holders of the parent         610          1,251       -51%
    -------------------------------------------------------------------

    Earnings, attributable to
     equity holders of the parent
     per share -basic                    0.53           1.09       -51%
    Earnings, attributable to
     equity holders of the parent
     per share -diluted                  0.52           1.08       -52%
    

    

                                       Full Year    Full Year     %
                                         2006         2005    variation
                                       --------------------------------

    Revenues                             20,044       19,484        +3%
    Cost of revenues                    (10,146)((*))   (9,898)       -3%((*))
                                       --------------------------------
    Margins from operations               9,898 ((*))    9,586        +3%((*))
    Selling, general and
     administrative expenses excluding
     amortization of intangible assets
     acquired through business
     combinations                        (5,533)      (5,568)
    Restructuring charges and other
     operating charges and income             5          (33)
    Amortization of intangible assets
     acquired through business
     combinations                          (223)        (239)
    Impairment losses of intangible
     assets acquired through business
     combinations                             -         (170)
    EBIT                                  4,147        3,576       +16%
    Income from equity affiliates           337          326
    Interest                               (203)        (218)
    Income from investments                  54           75
    Other financial charges and income      311          619
                                       ----------------------
    Earnings from continuing
     operations before provision for
     income taxes                         4,646        4,378        +6%
    Provision for income taxes              547         (204)
                                       ----------------------
    Earnings from continuing
     operations                           5,193        4,174       +24%
    Earnings from discontinued
     operations                               -           92
    Earnings                              5,193        4,266       +22%
    Minority interests                   (1,160)      (1,112)
    Earnings, attributable to the
     equity holders of the parent         4,033        3,154       +28%
    Earnings, attributable to equity
     holders of the parent per share
     -basic                                3.50         2.74       +28%
    Earnings, attributable to equity
     holders of the parent per share
     -diluted                              3.47         2.72       +28%
    

    In millions of euros, per-share amounts in euros.

    ((*)) Including transition costs associated with the CANAL+ / TPS merger
for an amount of EUR 177 million.

    


                                 APPENDIX III

                                   VIVENDI
      REVENUES AND EBITA ON A COMPARABLE BASIS BY BUSINESS SEGMENT ((xx))
                                    (IFRS)

                                                                  % Change
                                 4th            4th                  at
                               Quarter        Quarter             constant
    (In millions of euros)       2006           2005    % Change    rate
                              --------------------------------------------
    Revenues
    -------------------------
    Universal Music Group     EUR 1,657      EUR 1,682      -1.5%    +1.7%
    Canal+ Group                    918            875      +4.9%    +4.9%
    SFR                           2,181          2,228      -2.1%    -2.1%
    Maroc Telecom                   499            480      +4.0%    +5.5%
    Vivendi Games                   326            245     +33.1%   +38.5%
    Non core operations and
     elimination of inter
     segment transactions           (36)           (32)    -12.5%   -12.5%
    Total Vivendi             EUR 5,545      EUR 5,478      +1.2%    +2.6%
    ----------------------------------------------------------------------

    EBITA
    -------------------------
    Universal Music Group     EUR   311      EUR   316      -1.6%    +1.2%
    Canal+ Group                   (263)((*))        (82)      x3,2     x3,2
    SFR                             488            390     +25.1%   +25.1%
    Maroc Telecom                   221            203      +8.9%   +10.3%
    Vivendi Games                    29             25     +16.0%   +24.0%
    Holding & Corporate             (61)           (62)     +1.6%    +4.6%
    Non core operations              (3)             9        na(*)      na(*)
    Total Vivendi             EUR   722      EUR   799      -9.6%    -7.9%
    ----------------------------------------------------------------------
    EBITA/Revenues (%)             13.0%          14.6%  -1,6 pt
    

    
                                                              % Change at
    (In millions of       Full Year     Full Year            constant rate
     euros)                  2006          2005    % Change
                          ------------------------------------------------
    Revenues
    ---------------------
    Universal Music Group EUR 4,955     EUR 4,893      +1.3%         +1.5%
    Canal+ Group              3,593         3,336      +7.7%         +7.5%
    SFR                       8,678         8,693      -0.2%         -0.2%
    Maroc Telecom             2,053         1,860     +10.4%        +10.2%
    Vivendi Games               804           641     +25.4%        +26.1%
    Non core operations
     and elimination of
     inter segment
     transactions               (76)          (49)    -55.1%        -55.1%
    Total Vivendi         EUR20,007     EUR19,374      +3.3%         +3.3%
    ----------------------------------------------------------------------

    EBITA
    ---------------------
    Universal Music Group EUR   744     EUR   681      +9.3%        +10.2%
    Canal+ Group                 74 ((*))       206     -64.1%        -64.1%
    SFR                       2,583         2,422      +6.6%         +6.6%
    Maroc Telecom               912           786     +16.0%        +15.8%
    Vivendi Games               115            55    +109.1%       +109.1%
    Holding & Corporate        (113)         (195)    +42.1%        +42.5%
    Non core operations          54            33      63.6%        +64.9%
    Total Vivendi         EUR 4,369     EUR 3,988      +9.6%         +9.7%
    ----------------------------------------------------------------------
    EBITA/Revenues (%)         21.8%         20.6%  +1,2 pt
    

    na(*): not applicable.

    ((*)) Including transition costs associated with the CANAL+ / TPS merger
for an amount of EUR 177 million.

    ((xx)) Comparable basis essentially illustrates the effect of the
divestitures or abandonment of operations that occurred in 2005 and 2006
(mainly NC Numericable in 2005 and the Paris Saint-Germain soccer club (PSG)
in 2006 at Canal+ Group, and Annuaire Express SFR's phone directory activities
in 2005) and includes the full consolidation of stakes in distribution
subsidiaries at SFR as if these transactions had occurred as at January 1,
2005. Comparable basis results are not necessarily indicative of the results
that would have occurred had the events actually occurred at the beginning of
2005.

    
                                 APPENDIX IV

                                   VIVENDI
             REVENUES AND EBITA BY BUSINESS SEGMENT AS PUBLISHED
                                    (IFRS)


                                      4th Quarter    4th Quarter
    (In millions of euros)                2006           2005    % Change
                                      ------------------------------------
    Revenues
    ---------------------------------
    Universal Music Group             EUR  1,657     EUR  1,682      -1.5%
    Canal+ Group                             918            892      +2.9%
    SFR                                    2,181          2,212      -1.4%
    Maroc Telecom                            499            480      +4.0%
    Vivendi Games                            326            245     +33.1%
    Non core operations and
     elimination of inter segment
     transactions                            (36)           (32)    -12.5%
    Total Vivendi                     EUR  5,545     EUR  5,479      +1.2%
    ----------------------------------------------------------------------

    EBITA
    ---------------------------------
    Universal Music Group             EUR    311     EUR    316      -1.6%
    Canal+ Group                            (263)((*))        (92)      x2,9
    SFR                                      488            390     +25.1%
    Maroc Telecom                            221            203      +8.9%
    Vivendi Games                             29             25     +16.0%
    Holding & Corporate                      (61)           (62)     +1.6%
    Non core operations                       (3)             9        na(*)
    Total Vivendi                     EUR    722     EUR    789      -8.5%
    ----------------------------------------------------------------------
    EBITA / Revenues (%)                    13.0%          14.4%  -1,4 pt
    

    

                                      Full Year      Full Year
    (In millions of euros)                2006           2005    % Change
                                      ------------------------------------
    Revenues
    ---------------------------------
    Universal Music Group             EUR  4,955     EUR  4,893      +1.3%
    Canal+ Group                           3,630          3,452      +5.2%
    SFR                                    8,678          8,687      -0.1%
    Maroc Telecom                          2,053          1,860     +10.4%
    Vivendi Games                            804            641     +25.4%
    Non core operations and
     elimination of inter segment
     transactions                            (76)           (49)    -55.1%
    Total Vivendi                     EUR 20,044     EUR 19,484      +2.9%
    ----------------------------------------------------------------------

    EBITA
    ---------------------------------
    Universal Music Group             EUR    744     EUR    681      +9.3%
    Canal+ Group                              75 ((*))        203     -63.1%
    SFR                                    2,583          2,422      +6.6%
    Maroc Telecom                            912            786     +16.0%
    Vivendi Games                            115             55    +109.1%
    Holding & Corporate                     (113)          (195)    +42.1%
    Non core operations                       54             33     +63.6%
    Total Vivendi                     EUR  4,370     EUR  3,985      +9.7%
    ----------------------------------------------------------------------
    EBITA / Revenues (%)                    21.8%          20.5%  +1,3 pt
    

    na(*): not applicable.

    ((*)) Including transition costs associated with the CANAL+ / TPS merger
for an amount of EUR 177 million.

    
                                  APPENDIX V

                                   VIVENDI
      RECONCILIATION OF EARNINGS ATTRIBUTABLE TO EQUITY HOLDERS OF THE
                         PARENT TO ADJUSTED NET INCOME
                                    (IFRS)

    Vivendi considers adjusted net income, a non-GAAP measure, as a
     relevant indicator of the Group's operating and financial
     performance. Vivendi management uses adjusted net income, because it
     provides a better illustration of the performance of continuing
     operations excluding most non-recurring and non-operating items.

                                                   4th Quarter 4th Quarter
    (in millions of euros)                             2006        2005
    ----------------------------------------------------------------------

    Earnings, attributable to equity holders of        EUR 610   EUR 1,251
     the parent((*))
    Adjustments
    Amortization of intangible assets acquired
     through business combinations((*))                      56          65
    Impairment losses of intangible assets
     acquired through business combinations((*))              -          16
    Other financial charges and income((*))                 (93)       (348)
    Earnings from discontinued operations((*))                -          15
    Change in deferred tax asset related to the
     Consolidated Global Profit Tax System                 53         (83)
    Non recurring items related to provision for
     income taxes((xx))                                     (98)       (421)
    Provision for income taxes on adjustments             (18)        (82)
    Minority interests on adjustments                      (5)         (8)
    Adjusted net income                                EUR 505     EUR 405
    

    
                                                       Full Year Full Year
    (in millions of euros)                                2006      2005
    ----------------------------------------------------------------------

    Earnings, attributable to equity holders of the    EUR 4,033 EUR 3,154
     parent((*))
    Adjustments
    Amortization of intangible assets acquired through
     business combinations((*))                               223       239
    Impairment losses of intangible assets acquired
     through business combinations((*))                         -       170
    Other financial charges and income((*))                  (311)     (619)
    Earnings from discontinued operations((*))                  -       (92)
    Change in deferred tax asset related to the
     Consolidated Global Profit Tax System                   43       (88)
    Non recurring items related to provision for
     income taxes((xx))                                    (1,284)     (482)
    Provision for income taxes on adjustments               (83)     (102)
    Minority interests on adjustments                        (7)       38
    Adjusted net income                                EUR 2,614 EUR 2,218
    

    ((*)) As reported in the Consolidated Statement of Earnings.

    ((xx)) Corresponds mainly to the reversal of tax liabilities relating to
risks extinguished over the period. As of December 31, 2006, this item mainly
includes the profit related to the settlement of the DuPont litigation (EUR
1,082 million).

    
                                 APPENDIX VI

                                   VIVENDI
                 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                AS OF DECEMBER 31, 2006 AND DECEMBER 31, 2005
                                    (IFRS)

    (In millions of euros)                              December  December
                                                        31, 2006  31, 2005
                                                        --------  --------

    ASSETS

    Goodwill                                             13,068    13,796
    Non current content assets                            2,120     2,462
    Other intangible assets                               2,262     1,937
    Property, plant and equipment                         4,379     4,331
    Investments in equity affiliates                      7,032     6,856
    Non current financial assets                          3,164     3,783
    Deferred tax assets                                   1,484     1,784
                                                        --------  --------
    Non current assets                                   33,509    34,949

    Inventories                                             358       375
    Current tax receivables                                 617       822
    Current content assets                                  842       790
    Trade accounts receivable and other                   4,489     4,531
    Short-term financial assets                             833       114
    Cash and cash equivalents                             2,400     2,902
                                                        --------  --------
    Current assets                                        9,539     9,534
                                                        --------  --------
    TOTAL ASSETS                                         43,048    44,483
                                                        --------  --------

    EQUITY AND LIABILITIES
    Share capital                                         6,364     6,344
    Additional paid-in capital                            7,257     6,939
    Treasury shares                                         (33)      (60)
    Retained earnings and other                           6,324     5,546
                                                        --------  --------
    Equity, attributable to Vivendi's shareholders       19,912    18,769
    Minority interests                                    1,952     2,839
                                                        --------  --------
    Total equity                                         21,864    21,608

    Non current provisions                                1,388     1,220
    Long-term borrowings and other financial
     liabilities                                          4,714     4,545
    Deferred tax liabilities                              1,070     3,476
    Other non current liabilities                         1,269     1,342
                                                        --------  --------
    Non current liabilities                               8,441    10,583
                                                        --------  --------

    Current provisions                                      398       578
    Short-term borrowings and other financial
     liabilities                                          2,601     2,215
    Trade accounts payable and other                      9,297     8,737
    Current tax payables                                    447       762
                                                        --------  --------
    Current liabilities                                  12,743    12,292
                                                        --------  --------

                                                        --------  --------
    Total liabilities                                    21,184    22,875
                                                        --------  --------
    TOTAL EQUITY AND LIABILITIES                         43,048    44,483
                                                        --------  --------
    

    
                                 APPENDIX VII

                                   VIVENDI
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
                                    (IFRS)

                                                      Full Year  Full Year
    (In millions of euros)                              2006       2005
                                                      ---------  ---------

    Operating activities:
      EBIT                                               4,147      3,576
      Adjustments                                        1,703      1,528
      Content investments, net                            (111)       (15)
                                                      ---------  ---------
      Gross cash provided by operating activities
       before income tax paid                            5,739      5,089
      Other changes in net working capital                  67        (33)
                                                      ---------  ---------
      Net cash provided by operating activities
       before income tax paid                            5,806      5,056
      Income tax paid                                   (1,381)    (1,386)
                                                      ---------  ---------
      Net cash provided by operating activities          4,425      3,670

    Investing activities:
      Capital expenditures                              (1,690)    (1,380)
      Purchases of consolidated companies, after
       acquired cash                                    (1,022)    (1,311)
      Investments in equity affiliates                    (724)         -
      Increase in financial assets                      (2,135)      (170)
                                                      ---------  ---------
      Investments                                       (5,571)    (2,861)
      Proceeds from sales of property, plant,
       equipment and intangible assets                      45         89
      Proceeds from sales of consolidated companies,
       after divested cash                                   7       (361)
      Disposals of equity affiliates                        42         72
      Decrease in financial assets                       1,752        444
                                                      ---------  ---------
      Divestitures                                       1,846        244
      Dividends received from equity affiliates            271        355
      Dividends received from unconsolidated
       companies                                            34         37
                                                      ---------  ---------
      Net cash provided by (used for) investing
       activities                                       (3,420)    (2,225)

    Financing activities:
      Net proceeds from issuance of common shares           60         39
      Sales (purchases) of treasury shares                  16       (108)
      Dividends paid by Vivendi S.A. to its
       shareholders                                     (1,152)      (689)
      Dividends and reimbursements of contribution of
       capital paid by consolidated companies to
       their minority shareholders                      (1,034)      (965)
                                                      ---------  ---------
      Dividends and other transactions with
       shareholders                                     (2,110)    (1,723)
      Setting up of long-term borrowings and increase
       in other long-term financial liabilities          1,919      2,380
      Principal payment on long-term borrowings and
       decrease in other long-term financial
       liabilities                                        (576)    (1,649)
      Principal payment on short-term borrowings          (723)      (963)
      Other changes in short-term borrowings and
       other short-term financial liabilities              178        919
      Interest paid                                       (203)      (218)
      Other cash items related to financial
       activities                                           36       (485)
                                                      ---------  ---------
      Transactions on borrowings and other financial
       liabilities                                         631        (16)
                                                      ---------  ---------
      Net cash provided by (used for) financing
       activities                                       (1,479)    (1,739)
      Foreign currency translation adjustments             (28)        37
                                                      ---------  ---------
      Change in cash and cash equivalents                 (502)      (257)
                                                      ---------  ---------

    Cash and cash equivalents:
                                                      ---------  ---------
      At beginning of the period                         2,902      3,159
                                                      ---------  ---------
      At end of the period                               2,400      2,902
                                                      ---------  ---------
    

    
                                APPENDIX VIII

                                   VIVENDI
      SELECTED KEY CONSOLIDATED FINANCIAL DATA FOR THE LAST THREE YEARS
                                    (IFRS)

                                             Full Year Full Year Full Year
    Consolidated data                          2006      2005      2004
    ----------------------------------------------------------------------
    Revenues                                   20,044    19,484    17,883
    EBITA                                       4,370     3,985     3,504
    EBITA/Revenues(%)                            21.8%     20.5%     19.6%

    Earnings attributable to equity holders
     of the parent                              4,033     3,154     3,767
    Adjusted net income (ANI)                   2,614     2,218     1,498
    ANI/Revenues(%)                              13.0%     11.4%      8.4%

    Financial Net Debt                          4,344     3,768     4,724
    Equity                                     21,864    21,608    18,092
     Of which attributable to equity holders
      of the Parent                            19,912    18,769    15,449

    Cash flow from operations, before
     capital expenditures, net (CFFO before
     capex, net)                                6,111     5,448     5,358
    Cash flow from operations (CFFO)            4,466     4,157     4,354

    Capital expenditures, net (capex, net)      1,645     1,291     1,004
    Financial investments                       3,881     1,481       394
    Financial divestments                      (1,801)     (155)   (5,264)

    Dividends paid as for previous fiscal
     year                                       1,152       689         -

    Per-share amounts
    ----------------------------------------------------------------------
    Weighted average number of shares
     outstanding over the period              1,153.4   1,149.6   1,144.4
    Adjusted net income per share                2.27      1.93      1.31
    Number of shares outstanding at the end
     of the period (excluding treasury
     shares)                                  1,155.7   1,151.0   1,144.9
    Equity per share, attributable to equity
     holders of the parent                      17.23     16.31     13.49

    Dividends per share paid as for previous
     fiscal year                                 1.00      0.60      0.00
    

    In millions of euros, number of shares in millions, per-share amounts in
euros.




For further information:

For further information: Vivendi Media: Paris Antoine Lefort, +33 (0) 1
71 71 11 80 Agnes Vetillart, +33 (0) 1 71 71 30 82 Alain Delrieu, +33 (0) 1 71
71 10 86 or New York Flavie Lemarchand-Wood, +(1) 212-572-1118 or Investor
Relations: Paris Daniel Scolan, +33 (0) 1 71 71 32 91 Laurence Daniel, +33 (0)
1 71 71 12 33 Agnes de Leersnyder, +33 (0) 1 71 71 30 45 or New York Eileen
McLaughlin, +(1) 212-572-8961

Organization Profile

VIVENDI

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890