Vivendi vs.

Peer Companies
( in Millions Except Per Share Data)

Comparable Companies - French Holding / Telecom Companies with Revenue Above EUR 1
Operating Statistics:
Company Name
Orange SA
Kering
Iliad SA
Bouygues Telecom
Lagardre Group
Numericable Group SA

Capitalization
Share
Equity
Enterprise
Price
Value
Value
Year 1

12.30
32,419
63,145
45,104
157.80
19,853
23,410
9,754
208.50
12,084
13,182
3,662
32.90
11,305
15,591
38,978
24.50
3,103
2,787
6,968
37.40
3,085
5,585
1,214

Maximum
75th Percentile
Median
25th Percentile
Minimum

208.50
127.70
35.15
26.60
12.30

32,419
17,911
11,695
#NAME?
3,085

63,145
21,455
14,387
#NAME?
2,787

45,104
31,672
8,361
#NAME?
1,214

Vivendi SA

18.76

25,356

22,981

11,962

Valuation Statistics:

Capitalization
Share
Equity
Enterprise
Price
Value
Value

12.30
32,419
63,145
157.80
19,853
23,410
208.50
12,084
13,182
32.90
11,305
15,591
24.50
3,103
2,787
37.40
3,085
5,585

Company Name
Orange SA
Kering
Iliad SA
Bouygues Telecom
Lagardre Group
Numericable Group SA
Maximum
75th Percentile
Median
25th Percentile
Minimum

208.50
127.70
35.15
26.60
12.30

32,419
17,911
11,695
#NAME?
3,085

63,145
21,455
14,387
#NAME?
2,787

Vivendi SA

18.76

25,356

22,981

Revenue

Enterprise Value /
Revenue
Year 1
1.4 x
2.4 x
3.6 x
0.4 x
0.4 x
4.6 x
4.6 x
3.3 x
1.9 x
#NAME?
0.4 x
1.9 x

h Revenue Above EUR 1 Billion in the Most Recent Fiscal Year

Revenue
EBITDA
Adjusted Net Income
Year 2
Year 3
Year 1
Year 2
Year 3
Year 1

37,144
37,144
14,032
11,694
11,481
4,266
10,641
11,705
2,036
2,208
2,573
1,168
3,995
4,252
1,146
1,292
1,498
297
51,970
51,970
3,626
3,803
4,214
734
5,574
5,574
1,742
398
450
190
1,074
1,140
564
494
527
104

51,970
30,518
8,107
#NAME?
1,074

51,970
30,784
8,640
#NAME?
1,140

14,032
3,228
1,889
#NAME?
564

11,694
3,404
1,750
#NAME?
398

11,481
3,803
2,035
#NAME?
450

11,895

12,169

2,162

2,120

2,371

Enterprise Value /
Revenue
Year 2
Year 3
1.7 x
1.7 x
2.2 x
2.0 x
3.3 x
3.1 x
0.3 x
0.3 x
0.5 x
0.5 x
5.2 x
4.9 x

Enterprise Value /
EBITDA
Year 1
Year 2
Year 3
4.5 x
5.4 x
5.5 x
11.5 x
10.6 x
9.1 x
11.5 x
10.2 x
8.8 x
4.3 x
4.1 x
3.7 x
1.6 x
7.0 x
6.2 x
9.9 x
11.3 x
10.6 x

4,266
1,059
515
#NAME?
104
728

Adjusted P / E Multiple
Year 1
7.6 x
17.0 x
40.7 x
15.4 x
16.3 x
29.6 x

5.2 x
3.0 x
2.0 x
#NAME?
0.3 x

4.9 x
2.8 x
1.9 x
#NAME?
0.3 x

11.5 x
11.1 x
7.2 x
#NAME?
1.6 x

11.3 x
10.5 x
8.6 x
#NAME?
4.1 x

10.6 x
9.0 x
7.5 x
#NAME?
3.7 x

40.7 x
26.5 x
16.7 x
#NAME?
7.6 x

1.9 x

1.9 x

10.6 x

10.8 x

9.7 x

34.8 x

Adjusted Net Income

Year 2
Year 3

2,384
2,316
1,265
1,471
344
435
650
769
254
285
81
99

2,384
1,111
497
#NAME?
81

936

2,316
1,295
602
#NAME?
99
1,149

Adjusted P / E Multiple
Year 2
Year 3
13.6 x
14.0
15.7 x
13.5
35.1 x
27.8
17.4 x
14.7
12.2 x
10.9
38.3 x
31.3

x
x
x
x
x
x

38.3 x
30.7 x
16.6 x
#NAME?
12.2 x

31.3 x
24.5 x
14.4 x
#NAME?
10.9 x

27.1 x

22.1 x

Projected Rev. Growth Projected EBITDA Growth Projected NI Growth

Year 2
Year 3
Year 2
Year 3
Year 2
Year 3
(17.6%)
0.0%
(16.7%)
(1.8%)
(44.1%)
(2.9%)
9.1%
10.0%
8.5%
16.5%
8.3%
16.3%
9.1%
6.5%
12.7%
15.9%
16.0%
26.3%
33.3%
0.0%
4.9%
10.8%
(11.5%)
18.4%
(20.0%)
0.0%
(77.1%)
12.9%
33.6%
11.9%
(11.5%)
6.1%
(12.4%)
6.6%
(22.7%)
22.4%
33.3%
9.1%
(1.2%)
#NAME?
(20.0%)

10.0%
6.4%
3.1%
#NAME?
0.0%

12.7%
7.6%
(3.8%)
#NAME?
(77.1%)

16.5%
15.2%
11.9%
#NAME?
(1.8%)

33.6%
14.0%
(1.6%)
#NAME?
(44.1%)

26.3%
21.4%
17.3%
#NAME?
(2.9%)

(0.6%)

2.3%

(1.9%)

11.8%

28.6%

22.8%

EBITDA Margin
Year 1
Year 2
Year 3
31.1%
31.5%
30.9%
20.9%
20.8%
22.0%
31.3%
32.4%
35.2%
9.3%
7.3%
8.1%
25.0%
7.1%
8.1%
46.5%
46.0%
46.2%
46.5%
31.3%
28.1%
#NAME?
9.3%

46.0%
32.1%
26.1%
#NAME?
7.1%

46.2%
34.1%
26.4%
#NAME?
8.1%

18.1%

17.8%

19.5%

How Much is a Company Worth? - Scenario 1 - No Growth:

Discount Rate:
FCF Growth Rate:
Initial Free Cash Flow:
Present Value of FCFs:
And as Calculated by Excel

10.0%
0.0%
$
100
$
1,000
$
1,000

Free Cash Flow:

Valuation Multiple:

PV = Initial Free Cash Flow /

Year 1
Year 2
Year 3
100 $
100 $
100
10.0 x

MULTIPLE: Pretty straightforward - just the present value of FCFs divided by that same FCF eac

You're targeting a 10% yield, and there's no growth, so you're willing to pay $1,000 / $100 = 10
How Much is a Company Worth? - Scenario 2 - Growth:
Now, let's say the company's cash flows are actually growing each year could you pay MORE

Answer: More! Because there's growth, so you can afford to pay MORE upfront and get that sa
Discount Rate:
FCF Growth Rate:
Initial Free Cash Flow:
Present Value of FCFs:
And as Calculated by Excel

10.0%
3.0%
$
100
$
1,429
$
1,427

Free Cash Flow:

Year 1
Year 2
Year 3
$
100 $
103 $
106

Valuation Multiple:
Numerator Increases By:
Denominator Increases By:

PV = Initial Free Cash Flow /

13.9 x
42.9%
3.0%

MULTIPLE: Goes up! Yes, the Year 2 FCF is higher, which would ordinarily reduce the entire frac
BUT the numerator has increased by a greater percentage than the denominator!
How Much is a Company Worth? - Scenario 3 - More Growth:
Discount Rate:
FCF Growth Rate:

10.0%
5.0%

Initial Free Cash Flow:

Present Value of FCFs:
And as Calculated by Excel

$
$
$

100
2,000
1,981

PV = Initial Free Cash Flow /

= Initial Free Cash Flow / Discount Rate

Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
100 $
100 $
100 $
100 $
100 $
100 $
100

ded by that same FCF each year.

o pay $1,000 / $100 = 10.0x for the company.

ar could you pay MORE or LESS to get that SAME yield?

RE upfront and get that same 10% yield you're targeting.

= Initial Free Cash Flow / (Discount Rate - FCF Growth Rate)

Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$
109 $
113 $
116 $
119 $
123 $
127 $
130

rily reduce the entire fraction by boosting the denominator

enominator!

= Initial Free Cash Flow / (Discount Rate - FCF Growth Rate)

Year 11 Year 12 Year 13

$
100 $
100 $
100

Year 11 Year 12 Year 13

$
134 $
138 $
143