Vivendi : First Half 2020 Financial Results -3-

Since 2014, Vivendi has been focused on building a world-class content, media and communications group with European roots. In content creation, Vivendi owns powerful, complementary assets in music (Universal Music Group), movies and series (Canal+ Group), publishing (Editis) and mobile games (Gameloft) which are the most popular forms of entertainment content in the world today. In the distribution market, Vivendi has acquired the Dailymotion platform and repositioned it to create a new digital showcase for its content. The Group has also joined forces with several telecom operators and platforms to maximize the reach of its distribution networks. In communications, through Havas. the Group possesses unique creative expertise in promoting free content and producing short formats, which are increasingly viewed on mobile devices. In addition, through Vivendi Village, the Group explores new forms of business in live entertainment, franchises and ticketing that are complementary to its core activities. Vivendi's various businesses cohesively work together as an integrated industrial group to create greater value. www.vivendi.com

Important Disclaimers

Cautionary Note Regarding Forward-Looking Statements. This press release contains forward-looking statements with respect Vivendi's financial condition, results of operations, business, strategy, plans and outlook, including the impact of certain transactions and the payment of dividends and distribution, as well as share repurchases. 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 risks related to antitrust and other regulatory approvals as well as any other approvals which may be required in connection with certain transactions and the risks described in the documents of the Group filed by Vivendi with the Autorité des marchés financiers (the French securities regulator), which are also available in English on Vivendi's website (www.vivendi.com). Investors and security holders may obtain a free copy of documents filed by Vivendi with the Autorité des marchés financiers at www.amf-france.org, or directly from Vivendi. Accordingly, we caution readers against relying on such forward-looking statements. These forward-looking statements are made as of the date of this press release. 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.

Although the COVID-19 pandemic is having a more significant impact on certain countries or businesses than others, Vivendi has been able to demonstrate resilience and adapt in order to continue to best serve and entertain its customers, while reducing costs to preserve its margins. The business activities showed good resistance, in particular music and pay television. However, as anticipated when the first-quarter revenues were released, Havas Group, Vivendi Village and Editis were affected by the effects of the public health crisis. However, Editis has been enjoying a strong rebound in its business since the end of the lockdown in France.

Vivendi carefully analyzes the current and potential consequences of the crisis. It is difficult at this time to determine how it will impact its annual results. Businesses related to advertising and live performance are likely to be affected longer than others. Nevertheless, the Group remains confident in the resilience of its main businesses. It continues to make every effort to ensure the continuity of its activities and best serve and entertain its customers and audiences while complying with the authorities' guidelines in each country where it operates.

A review of the value of assets with an indefinite life, in particular the goodwill, was performed. Taking into account the performance achieved during the first half of the year by the business units, Vivendi did not identify any indications of a decrease in the recoverable amount compared to December 31, 2019, based on the sensitivity analyses performed.

Unsponsored ADRs. Vivendi does not sponsor any American Depositary Receipt (ADR) facility in respect of its shares. Any ADR facility currently in existence is "unsponsored" and has no ties whatsoever to Vivendi. Vivendi disclaims any liability in respect of any such facility.

ANALYST CONFERENCE CALL

Speakers:

Arnaud de Puyfontaine

Chief Executive Officer

Hervé Philippe

Member of the Management Board and Chief Financial Officer

Date: July 30, 2020

6:15pm Paris time -- 5:15pm London time -- 12:15pm New York time

Media invited on a listen-only basis.

Internet: The conference can be followed on the Internet at: www.vivendi.com/en/investment-analysts/ (audiocast)

Dial-in details for the conference call that will be held in English:

France [phone]

UK [phone]

USA [phone]

Code Vivendi

The dial-in numbers for the conference call and replay, an audio webcast and the presentation slides will be available on our website www.vivendi.com.

APPENDIX I

VIVENDI

CONDENSED STATEMENT OF EARNINGS

(IFRS, unaudited)

 
                                     Six months ended June 30,    % Change 
                                     2020           2019 
REVENUES                             7,576          7,353         + 3.0% 
Cost of revenues                     (4,101)        (4,054) 
Selling, general and administrative 
 expenses excluding amortization of 
 intangible assets acquired through 
 business combinations               (2,629)        (2,543) 
Income from operations*              846            756           + 11.8% 
Restructuring charges                (53)           (22) 
Other operating charges and income   (58)           (16) 
Adjusted earnings before interest 
 and income taxes (EBITA)*           735            718           + 2.4% 
Amortization and depreciation of 
 intangible assets acquired through 
 business combinations               (75)           (73) 
Other charges and income             -              - 
EARNINGS BEFORE INTEREST AND INCOME 
 TAXES (EBIT)                        660            645           + 2.3% 
Income from equity affiliates - 
 non-operational                     64             (8) 
 
Interest                             (16)           (21) 
Income from investments              15             5 
Other financial charges and income   417            91 
                                     416            75 
Earnings before provision for 
 income taxes                        1,140          712           + 60.0% 
Provision for income taxes           (299)          (182) 
Earnings from continuing operations  841            530           + 58.6% 
Earnings from discontinued 
operations                           -              - 
Earnings                             841            530           + 58.6% 
Non-controlling interests            (84)           (10) 
EARNINGS ATTRIBUTABLE TO VIVENDI SE 
 SHAREOWNERS                         757            520           + 45.7% 
Earnings attributable to Vivendi SE 
 shareowners per share - basic (in 
 euros)                              0.66           0.41 
Earnings attributable to Vivendi SE 
 shareowners per share - diluted 
 (in euros)                          0.65           0.41 
 
Adjusted net income*                 583            554           + 5.4% 
Adjusted net income per share - 
 basic (in euros)*                   0.51           0.44 
Adjusted net income per share - 
 diluted (in euros)*                 0.50           0.43 
 

In millions of euros, except per share amounts.

* non-GAAP measures.

The non-GAAP measures of "Income from operations", "adjusted earnings before interest and income taxes (EBITA)" and "adjusted net income" should be considered in addition to, and not as a substitute for, other GAAP measures of operating and financial performance. Vivendi considers these to be relevant indicators of the group's operating and financial performance. Vivendi Management uses income from operations, EBITA and adjusted net income for reporting, management and planning purposes because they exclude most non-recurring and non-operating items from the measurement of the business segments' performances. Furthermore, as of June 30, 2020, in the context of the COVID-19 pandemic, Vivendi has not changed the definition of these indicators, which are therefore comparable to fiscal year 2019.

For any additional information, please refer to the "Financial Report for the half-year 2020", which will be released online later on Vivendi's website (www.vivendi.com).

APPENDIX I (Cont'd)

VIVENDI

CONDENSED STATEMENT OF EARNINGS

(IFRS, unaudited)

Reconciliation of earnings attributable to Vivendi SE shareowners to adjusted net income

 
                                                 Six months ended June 30, 
(in millions of euros)                           2020            2019 
Earnings attributable to Vivendi SE shareowners 
 (a)                                             757             520 
Adjustments 
Amortization and depreciation of intangible 
 assets acquired through business combinations   75              73 
Amortization of intangible assets related to 
 equity affiliates                               30              30 
Other financial charges and income               (417)           (91) 
Provision for income taxes on adjustments        106             34 
Impact of adjustments on non-controlling 
 interests                                       32              (12) 
Adjusted net income                              583             554 
 
   1. As reported in the Condensed Statement of Earnings. 
 

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07-30-20 1358ET