Vivendi : Shareholders newsletter – September 2021

TOGETHER	LETTER TO OUR
SHAREHOLDERS
SEPTEMBER 2021
RESULTS P. 3	NEWS P. 4	DIARY P. 8
	- First half	- Prisma Media, a new	- Shareholders' diary
	of 2021	flagship for Vivendi	Vivendi and you

Slimane and Vitaa © David Bellemere - Eddy de Pretto © Marie Schuller - Gregory Porter © Erik Umphery - Ariana Grande, cover Positions album © DR UMG - Lang Lang, Berlin © DR UMG - King & Prince © DR UMG - The Weeknd © DR UMG - Justin Bieber © DR UMG

Photos / DR

VIVENDI ENTERS

A NEW PHASE

Yannick Bolloré, Chairman of the Supervisory Board,

and Arnaud de Puyfontaine, Chairman of the Management Board

VDear Sir/Madam, dear shareholder,

ivendi is opening a new chapter in its history. In June, 99.9% of its shareholders voted in favor of the plan to distribute 60% of the share capital of Universal Music Group (UMG) to them and to list UMG on the Amsterdam Stock Exchange. These transactions were initiated to reduce the holding discount from which Vivendi's shares have suffered for many years. Once completed, Vivendi will retain 10% of UMG alongside its shareholders (60%), a Tencent-led consortium (20%) and funds owned or managed by William Ackman (10%).

UMG's listing is taking place at a time when the music industry is thriving, thanks to subscription and streaming platforms. Many of the sector's assets have entered the financial markets in recent months. The valuation of UMG, which stood at less than €10 billion seven years ago, rose to €30 billion (selling price at enterprise value of the 20% stake in UMG sold to the Tencent-led consortium) in March 2020 and January 2021, then to €33 billion (PwC and EY's valuation of the company's equity value used to prepare for the initial public offering) in February 2021 and finally to €35 billion (enterprise value retained in the negotiations with William Ackman) in June 2021.

In the first half of 2021, UMG confirmed its solid growth: EBITA increased by 37.7% at constant rates and perimeter compared to the first half of 2020, giving an EBITA-to-sales ratio now close to 20%.

Under its new perimeter, Vivendi will pursue its strategy of creating a world leader in media, content, and communication. Its strategic plan is based on several major pillars: creating high-quality content, increasing international distribution capacity, developing new forms of entertainment and rolling them out in high-potential markets, and expanding the integration of activities.

This plan will also be accomplished by adapting Vivendi's businesses to the radical digital changes they are all facing. We have achieved this with UMG and are in the process of doing the same with the other Vivendi entities.

In addition, Vivendi finalized the acquisition of 100% of Prisma Media's share capital. Prisma Media is the French leader in magazines, with 20 leading press brands (Femme actuelle, Télé- Loisirs, Capital, Gala, etc.). This transaction, which complements Vivendi's spectrum of activities, is entirely in line with its strategy. It will provide interesting development opportunities between Prisma Media's magazines and the other group entities. This joint project strategy has already been successfully implemented in the various Vivendi entities.

Thank you for your loyalty. We hope you enjoy this newsletter!

2 - LETTER TO OUR SHAREHOLDERS		SEPTEMBER 2021

RESULTS

FIRST HALF OF 2021

Vivendi recorded very good results in the first half of 2021. Boosted by the growth of Universal Music Group (UMG), Canal+ Group, Havas Group and Editis, as well as the consolidation of Prisma Media, Vivendi's sales amounted

o €8.2 billion, up 8.5% compared to the first half of 2020. At constant rates and perimeter, it grew by 11.9%. Thanks to cost control, the EBITA stood at €1,066 million, an increase of 45.0% compared to the first half of 2020, or 49.3%, at constant rates and perimeter(1).

Adjusted net income, reflecting the group's intrinsic performance, amounted to €724 million, up 24.1%. As of June 30, 2021, Vivendi's

net financial debt amounted to

€2,878 million, compared to €4,953 million on December 31, 2020, with a group's net debt-to-equity ratio at 14.9%.

As adjusted, Vivendi's net cash position,

which notably includes the repayment

by UMG of its debt to Vivendi and the sale of an additional 10% of UMG's capital

to funds linked to William Ackman, would amount to more than €2.4 billion. Although the impacts of the Covid-19 pandemic have been more significant for certain countries and activities than others in the first half of 2021, Vivendi has demonstrated resilience and adapted to continue to best serve and entertain its customers, while reducing costs to protect margins. It is difficult at this time to determine how it will impact Vivendi's results for the whole 2021 financial year. Nevertheless, the group remains confident about the resilience of its core activities.

REVENUES BY ACTIVITY

AS OF JUNE 30

UNIVERSAL MUSIC GROUP	CANAL+ GROUP
€3,831 M	€2,782 M

		HAVAS GROUP
ELIMINATION OF		€1,048 M
	EDITIS
INTERSEGMENT		€372 M
OPERATIONS
(€23) M	PRISMA MEDIA(1)
NEW INITIATIVES	€29 M
€38 M
VIVENDI VILLAGE	GAMELOFT
€24 M	€120 M

(1) Constant perimeter notably reflects the impact of the acquisition of Prisma Media, consolidated since May 31, 2021.

REVENUES	EBITA(1)	ADJUSTED NET INCOME(1)
€7,576 M	€8,221 M
		€1,066 M
		€735 M			€724 M
				€583 M
2020	2021	2020	2021	2020	2021

1. The non-GAAP measures of 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.VivendiManagementusesEBITAandadjustednetincomeforreporting,managementandplanningpurposesbecausetheyexcludemostnon-recurringandnon-operating items from the measurement of the business segments' performances. For any additional information, please refer to the Financial Report for the half-year 2021, which will be released online later on Vivendi's website (www.vivendi.com).

SEPTEMBER 2021		LETTER TO OUR SHAREHOLDERS - 3

NEWS

Prisma Media, a new flagship for Vivendi

The Prisma Media acquisition was completed on May 31, 2021. Vivendi has welcomed into its fold a leader in the magazine industry that has the same objectives as itself.

		Prisma Media / DR
ivendi completed the acquisition of	actuelle Escapades, and more. A little longer ago,
100% of Prisma Media on May 31 (it had	in April 2018, came the advent of Simone,
signed a commitment to purchase it	a fully-female, 100% video, 100% digital and 100%
with Gruner + Jahr - Bertelsmann on	engaged news outlet.
December 23, 2020), welcoming a leader	This magazine perfectly reflects Prisma Media's
Vin	CSR	commitments, aiming to contribute to a more
magazines whose objectives are in line with
its own.	sustainable and fair society, with a belief in
Bolstered by twenty or so leading brands, Prisma	the complementary nature of individuals, as well as
Media is the leader in magazines in France, in both	the strength and cohesion of a team. Prisma Media
print and digital form. It has been outperforming	is taking various actions in support of solidarity,
the market for many years.	diversity and inclusion (sponsorship, local action,
Here are a few figures to illustrate this leadership:	diversity, gender equality, and combating
Prisma Media accounts for 1 in 4 magazines sold	harassment).
on news stands, 5 magazines purchased	In addition, climate protection is one of its strategic
per second, 50% of digital advertising sales	priorities. Its goal is to achieve Net Zero Carbon
for magazines, 23 million readers per month,	by 2025. This objective is fully in line with that
9 million single visitors per day, 31 million video	of Vivendi.
surfers per month (making it the leader in video)	Since its acquisition by Vivendi, Prisma Media has
and 41 million French people reached (i.e., 8 out	been moving towards an integrated growth
of 10 French people).	strategy. It intends to develop its brand portfolio,
Its brands, most of which are well established,	strengthen its leadership, create new paying
aim to inform, support, inspire and entertain French	businesses for consumers, turn its audiences into
people day after day. Prisma Media's mission is	identified paying users and increase synergies
to make French people's lives better, allowing them	with the group's other entities.
to read about, see, listen to and experience their

passions.

Far from resting on its laurels, Prisma Media is still exploring new territories and creating new magazines. In recent months, it has launched Bienvenue chez vous by Stéphane Plaza, Femme

4 - LETTER TO OUR SHAREHOLDERS		SEPTEMBER 2021

© 2017 Studiocanal SAS. All Rights Reserved

Canal+ Group celebrates Studiocanal's

30th anniversary

With thirty years of experience, Studiocanal, the European cinema leader, intends to strengthen its position.

Studiocanal celebrated its 30th anniversary at the last Cannes film festival. Without a doubt, the ambition of the European leader in

the production and distribution of movies is to strengthen its position and compete with Hollywood. "We want to be the European response to

the major American studios. We have never had so many projects in the pipeline," says its CEO Anna Marsh.

By 2024, Studiocanal intends to spend €1 billion on content creation. In terms of cinema, filming of Paddington 3 will begin in the second quarter of 2022, again in collaboration with Heyday Films. The two studios will also develop Fifi Brindacier's franchise. Various movies are also at a very advanced stage, such as Retribution, with Liam Neeson, Role Play, with Kaley Cuoco, Baghead, with Ruby Barker and Freya Allan, the sequel of Cold Pursuit, with Liam Neeson, and War Magician and The Electrical Life of Louis Wain, with Benedict Cumberbatch. In terms of television, Studiocanal is working on the third season of The Adventures of Paddington Bear and

The War of the Worlds. It will be developing an adaptation of Corto Maltese with its subsidiary Red Production Compagny. In partnership with Editis, it is working on a series entitled The Blue Hour, based on Douglas Kennedy's bestseller, the N.É.O. series, based on a novel by Michel Bussi and an adapted series of All Those Things We Never Said, by Marc Levy.

Over thirty years, Studiocanal has also built an extensive catalog of 6,000 movies from 60 countries. Recently, it also announced the acquisition of Lailaps Films Germany, thus pursuing its external growth strategy.

CANAL+ WAS AWARDED EXCLUSIVITY FOR

THE TWO TOP GAMES OF EACH MATCH DAY OF THE CHAMPIONS LEAGUE BY UEFA, FROM 2021.

For the three seasons 2021-2022,2022-2023 and

2023-2024, Canal+ will broadcast the top two matches of each Champions League day, on Tuesday and Wednesday evenings,

the final and the Super Cup. The UEFA Champions League supplements the unrivaled sport offering of Canal+, which includes Ligue 1 (until the end of the current season), the entire English Premier League, the Top 14, Formula 1 and MotoGP, as well as boxing and golf. Canal + also offers the full range of major sporting competitions through its partnerships with beIN Sports, RMC Sports and Eurosport.

Havas, Editis, and Prisma Media are joining forces

Because the recovery of global tourism requires new solutions, the Vivendi group entities have come together with the CSA (Consumer Science & Analytics) to put forward an innovative offer in responsible tourism, under the new identity: Here.

With vaccination allowing us to catch sight of a gradual recovery in international tourism, 77% of prosumers(1) hope to travel outside their country and 64% of affluent travelers cannot wait to travel again. The World

Tourism Organization forecasts 2 billion tourists by 2035. In this context, tourist destinations will have to engage in a relentless commercial war to capture these post-pandemic tourists, with part of the equation related to the value proposition they will be able to offer and, in their ability, to respond to the tourists' search for meaning.

The pandemic has acted as a catalyst for contradictory movements, with those who aspire to travel better and more responsibly, on the one hand, and those who are discovering mass tourism on the other hand. In response to this complexity,

the Vivendi group, with its subsidiary Havas as a bridgehead, has decided to launch Here, a range of original solutions to support tourism stakeholders (destinations, airlines and hotel groups). Here offers:

• the marketing and communication power of Havas Group, as well as its global network;
• the consulting force of Gate One (a Havas Group agency), an expert in strategy and organization consultancy;
• the capacity to attract audiences and the content expertise of Prisma Media, including the iconic GEO and National Geographic France;
• the world's best-selling travel guide: Lonely Planet (Editis group);
• the CSA's unique data;
• and the entire Vivendi galaxy: Canal+ Studios, Gameloft, etc. Here's ambition, illustrated by its "Powering Meaningful Destinations" slogan, is to accompany clients from the structuring of their business plan to the creation of campaigns capable of generating sales while working with them to develop the best possible travel experiences that consumers want.

(1) "Beyond Covid Part II" Prosumer report, December 11, 2020.

© Getty Images

SEPTEMBER 2021		LETTER TO OUR SHAREHOLDERS - 5