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Friday, February 19, 2016
Presentation of key assumptions used for the determination of recoverable amounts
The value in use of each CGU or groups of CGU is determined as the discounted value of future cash flows by using cash flow projections
consistent with the 2016 budget and the most recent forecasts prepared by the operating segments. These forecasts are prepared for each
operating segment, on the basis of financial targets as well as the following main key assumptions: discount rate, perpetual growth rate and
EBITA as defined in Note 1.2.3, capital expenditures, the competitive and regulatory environments, technological developments and level of
commercial expenses. The recoverable amount for each CGU or groups of CGU was determined based on its value in use in accordance with
the main key assumptions set out below.
Valuation Method
Discount Rate (a) Perpetual Growth Rate
Operating segments CGU or groups of CGU tested 2015 2014 2015 2014 2015 2014
Canal+ Group
Pay-TV and free-to-air TV in France,
DCF
DCF
Poland, Africa and Vietnam
& comparables model (b) & comparables model (b) (c) (c) (c) (c)
Studiocanal DCF DCF 9.25% 9.75% 0.50% 1.00%
Universal Music Group Universal Music Group DCF & comparables model DCF & comparables model 8.50% 8.90% 1.125% 1.00%
Vivendi Village See Tickets DCF DCF 11.00% 11.50% 2.00% 2.00%
DCF: Discounted Cash Flows.
a. The determination of recoverable amounts using a post-tax discount rate applied to post-tax cash flows provides recoverable amounts
consistent with the ones that would have been obtained using a pre-tax discount rate applied to pre-tax cash flows.
b. Except for nc+ in Poland: comparables model in 2015 and DCF in 2014.
c. Discount rates and perpetual growth rates applied to test this group of UGT were the following:
Discount rate
Perpetual growth rate
2015 2014 2015 2014
Pay-TV
Mainland France 7.56% 8.04% 1.20% 1.50%
France overseas 8.80% 9.04% 1.20% 1.50%
Poland na 9.75% na 3.00%
Africa 9.80% 10.04% 3.00% 3.14%
Vietnam 10.30% 10.88% 3.00% 4.50%
Free-to-air TV - Mainland France 8.26% 9.50% 1.50% 2.00%
na: not applicable.
Sensitivity of recoverable amounts
Discount rate
December 31, 2015
Perpetual growth rate
Discounted cash flows
Applied
rate
(in %)
Increase in the discount rate
in order for the recoverable amount
to be equal to the carrying amount
(in number of points)
Applied
rate
(in %)
Decrease in the perpetual growth rate
in order for the recoverable amount
to be equal to the carrying amount
(in number of points)
Decrease in the discounted cash flows
in order for the recoverable amount
to be equal to the carrying amount
(in %)
Canal+ Group
Pay-TV and Free-to-air TV in France,
Poland, Africa and Vietnam (a) +1.16 pt (a) -2.11 pts -17%
Studiocanal 9.25% +1.97 pt 0.50% -2.81 pts -21%
Universal Music Group 8.50% +1.25 pt 1.125% -1.55 pt -15%
Discount rate
December 31, 2014
Perpetual growth rate
Discounted cash flows
Applied
rate
(in %)
Increase in the discount rate
in order for the recoverable amount
to be equal to the carrying amount
(in number of points)
Applied
rate
(in %)
Decrease in the perpetual growth rate
in order for the recoverable amount
to be equal to the carrying amount
(in number of points)
Decrease in the discounted cash flows
in order for the recoverable amount
to be equal to the carrying amount
(in %)
Canal+ Group
Pay-TV and Free-to-air TV in France,
Africa and Vietnam (a) +0.28 pt (a) -0.39 pt -4%
nc+ 9.75% +6.31 pts 3.00% -10.25 pts -49%
Studiocanal 9.75% +1.66 pt 1.00% -2.57 pts -18%
Universal Music Group 8.90% +0.62 pt 1.00% -0.77 pt -8%
a. For a presentation of the applied rates, please refer to the table in reference c. above.
Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2015 Vivendi /66