Telefônica Brasil S.A. Price & Performance (VIV)

This operation was completed on a tight schedule running from December 2023 until the approval of the spin off by 97.5% at the extraordinary General Meeting on 12/09/2024. Following this intense period, the Vivendi Group is now composed of a portfolio of listed investment managed dynamically including among others, Universal Music Group, Telecom Italia, Bani J, and Media for Europe. And an operational asset with Gameloft which we continue to support in its transformation into a multi platform game publisher. The value of these assets as of December 2024 amounts to over €7,100,000,000 including €6,900,000,000 in listed securities. For 2024, the revaluated net assets reflects the debt adjusted estimate of the value of all listed and unlisted assets of the group's stands at 4,800,000,000.0 after accounting for a 2,100,000,000.0 in debt and SEK 300,000,000.0 in liabilities. The 2024 accounts are thus impacted by EUR 5,700,000,000.0 due to the fair value adjustment of the spin off assets a purely accounting effect. As mentioned earlier, Vivendi is committed to a major transformation project aimed at creating value for all stakeholders. We are now a few weeks past the first day of trading which was December 16. As you can see on the screen, Vivendi has risen by 15% since the beginning of the year and is outperforming 120 Index to which it is now linked.

Francois will shortly discuss the details of our performance over the past year. If you will allow me, a few informative words about the newly listed entities to highlight. The exceptional performance of Avas, which closed a historic Yes. The very strong results of Luehachette Group, which combines La Garderes and Pris Mamelia, And Group cannot be achieved achievements of key milestones in becoming one of the leading players in And it's fair to say that if the activities resulting from the spin off have not yet reached to date the expected level of value creation, we remain very confident that the anticipated valuations will be Thank you very much. And I will now hand over to Francois. Thank you very much, Arnaud. I will walk you through the the figures of the group for 2024. Plus the one key figures with this portfolio of 7,100,000,000.0 As Anu mentioned, the net asset value of SEK 4,800,000,000.0, which is €4.69 per share.

In terms of P and L, it's a revenue of $297 EBITA minus $1 adjusted net income 111% and the net earnings group shares taking into account the impact of the split of six negative by 6,000,000,000 If we look at our investment portfolio, you know the all the the stakes of the Vivendi Group starting by Unifin Music, with 9.94%. We remind you about TIM, MFE, Benitez, Telefonica and Przard. With no major evolution on these stakes. Just a few words on Lagardere.

After the spin off, we have invested in Lagardere for representing now 473% at the end of the year. We went up to 5% very recently.

We disclosed this threshold last week. And this is mainly due to the exercise of the right of session in the end of some shareholders of Lagarde. If we look at the valuation of this portfolio, it's for the listed company, it represents six So for the listed company, it represents SEK6.9 billion at the end of the year 2024. Euros €4,400,000,000 coming euros €4,500,000,000 let's say coming from UMG. The rest with Stella Comitaria $900,000 Benitez $700,000 The remaining coming from MFE, Telefonica, Lagarde, [indiscernible] If we spend a few seconds on Gameloft, which is our operating business unit, The revenue went down from 2023 to 2024 from $3.11 to February, so 5.7 decrease.

Nevertheless, due to a very positive and talented cost management, the GameLoft team management has been able to increase the EBITDA from €5,000,000 to €8,000,000 between 2023 and 2024. And if we were to to compare the before restructuring charge, it's an increase from €10,000,000 to €14,000,000 confirming the very good performance of Gameloft. We have reminded the geographical speed of our revenues with North America being the first region at 45% of the revenues and then Europe 37%, Asia and Latin America. If we have a look at the net asset value which we gave you the figures €4,800,000,000 we We start with the portfolio valuation we have already described of €7,100,000,000 and then we deduct the net debt, which is EUR 2,700,000,000.0. And we also deduct some liabilities for €311,000,000 So at the end, we have this net asset value of SEK4.8 billion. Which is euros per share. Knowing that we have 1,290,000,000.00 shares in our capital. The financial debt evolution, we started the year with a €2,800,000,000 debt.

Which was the one disclosed at the previous year. Let me rapidly highlight some major events on this financial net debt evolution with the impact of the divestment in of our ticketing business early in the second half.

Of 2024 for an amount of €300,000,000 We also have acquired $389,000,000 of Lagardere share. Some of which have been part of the split and some other have been kept after the split. We have made share buyback for $343,000,000 mainly exclusively on the first half of the year. And we have paid dividend to our shareholder for a little bit more than EUR $250,000,000. If we look at the loan to value, we refer to this net debt of €2,072,000,000 This net debt comes from mainly from the margin loan we have set up during the fourth quarter twenty twenty four. With five banks, five international banks, To this margin loan, we had commercial paper from which we have €450,000,000 at the end of the previous year. And our bank loans and other debt for €197,000,000 So at the end, we have this adjusted net debt of €2,720,000,000 And if we compare it with the market value of our investments, it's 30% loan to value ratio.

If we look at our income statement, let's focus on the revenues and EBITDA. Tell you that our revenue is mainly coming from Gameloft and reminding you that the figures for 2023 are the one which has been restated in accordance with the IFRS five rule.

So the 2023 figures as the one stated on the current parameter, excluding all the impact of the spin cost, which have left the group So the revenue went down, as I explained, due to Gameloft by 4.9% and the EBITDA which was EUR $333,000,000 negative last year, is slightly negative at SEK1 million including the Gameloft performance EUR 8,000,000. The corporate cost for EUR 126,000,000, and the Vivendi share of UMG earnings that we account for in the EBITDA €120,000,000 compared with 94 Last June, If we go to the full P and L, starting from this EV of minus 1%, we have the impact of the amortization and depreciation of intangible mainly the goodwill impairment that we did for Gameloft for an amount of €140,000,000 We also have accounted the settlement of the agreement with institutional investors during the first half twenty twenty. Four for €96,000,000 negative 96 So with our earnings from continuing positive interest and the income for investment coming from the dividend of MFE, Balijay or Telefonica Vivendi. And then if we add the impact of the earnings from continuing operation with, as Arnaud mentioned, as the impact of the fair value adjustments of the distributed assets based on the opening share price [indiscernible] for 5,700,000,000.0 the reason why the net income grew share is a loss of €6,040,000,000 Nevertheless, our adjusted net income, which represent the recurring result of the group, is positive by €111,000,000 As a conclusion, I will remind that these figures have been strongly impacted by the spin off of the group.

Into foreign entities let you know that we will release our twenty twenty five Q1 revenues on April 2028. And that we will propose our generate dividend the shareholder meeting of April 2028 of $0.04 per share represents a yield of 1.5%, roughly €40,000,000 and that the dividend should be paid on the May 2, if confirmed by the shareholders during the shareholder meeting.

So that's where we are for 2024 and with Arnaud, we Thank you very much, Mr. Lejos.

We do not appear to have any questions coming at this time. Mr. Dupri Fontaine, I'd like to turn the call back over to you. One, please, sir. We just have a question popped in now and a couple of them. The first question is coming from Samik Asab of B. L. B. Paribas. Thank you very much, and good evening, gentlemen.

One question, can you please remind me of the long term strategy with the video games asset please. Thank you. Well, thank you for your question. We are happy about the current performance of Gameloft, which has delivered numbers in a year without new launches. Which has enabled the company to show that its foundation are ready for a bright future. So our strategy is to be able to generate organic growth while increasing margins in terms of operation. And to be in a position to seize the potential acquisition bolt on acquisition to grow the size of the company. We have read in the press some speculation about willingness to I mean, we've ended to exit the game operation, which is an invalid in Thank you very much, sir. Our next question is coming from Eric Alvarie of CEC. Please go ahead.

Yes, good evening. Thank you for taking my question. First one is on the curve price cost level. So it started to reduce in last year. Are you planning to reduce it further? In the coming years? And I would could be the sort of normative corporate cost level for for the new Vivendi? And second question on Telecom Italy. Could we have an update on situation there? And what could be the solutions for you to potentially sell your stake? Thank you.

Thank you for your question. We don't give you precise figures on the on the evolution of the corporate cost. Nevertheless, we can give you a trend. I reminded you that some people who have left the Vivendi Group following the split and which are we have joined the different spin codes. It's more than 25 people who have left. So this will have a positive impact on the 2025 figures. And we also focus on reducing all type of OpEx. So we have a plan ambitious plan to keep on reducing, but we won't disclose precisely the ambition for 2025. Thank you. As regard to the question on Telecom Italia, we have made it very clear that our intention is to sell our stake in Telecom Italia. And this is the plan. So we have seen many speculation and rumors about the situation. But when we are in a position to be able to exit the company in good terms, We'll do it. So it's a very pragmatic and active shareholder position as regarded to the sequence of events over the past twelve months. And we want to be very dedicated in getting a solution as we Thank you very much, sir. [indiscernible] Thank you, Bart.

We have no further questions.

Well, thank you very much. Have a good evening.

And see you on the next occasion. Thank you.

Thank you. Bye bye. We wish you a very good day and goodbye.