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Friday, February 19, 2016
Quoted equity portfolio
Note
Number of
held shares
Cumulated
historical
value (a)
Ownership
interest
Stock market
Carrying
value
Change in
value in the
period (b)
Cumulate of
unrealized capital
gain/loss (b)
Sensitivity at
+/-10 pts (b)
(in thousands)
(€/share)
(in millions of euros)
Activision Blizzard 41,500 416 5.7% 35.41 1,470 (c) 781 (c) 1,054 (c) (c)
Telefonica 2.3 47,353 554 0.95% 10.24 485 (70) (70) +49/-49
Ubisoft 2.4 15,659 352 13.98% 26.67 418 65 65 +42/-42
Gameloft 2.4 24,489 122 28.65% 6.06 148 26 26 +15/-15
Total 2,520 803 1,076 +106/-106
Note
Number of
held shares
Cumulated
historical
value (a)
Ownership
interest
Stock market
December 31, 2015
December 31, 2014
Carrying
value
Change in
value on
period (b)
Cumulate of
unrealized capital
gain/loss (b)
Sensitivity at
+/-10 pts (b)
(in thousands)
(€/share)
(in millions of euros)
Activision Blizzard 41,500 416 5.7% 16.60 689 273 273 (c)
Numericable-SFR 2.8 97,388 3,244 20.0% 40.94 3,987 743 743 (d)
Total 4,676 1,016 1,016
a. These amounts include acquisition fees and taxes.
b. As of December 31, 2015 and 2014, in accordance with IAS 39, these amounts, before taxes, were accounted for as charges and income
directly recognized in equity, except for the remeasurement of the underlying instrument offsetting the intrinsic value of the hedge of
Activision Blizzard shares (€467 million as of December 31, 2015, please refer to reference c. below).
c. These shares were subject to a lock-up period, which expired on January 7, 2015.
On June 11, 2015, Vivendi entered into an agreement to hedge 100% of the value of these shares denominated in USD, through an
18-month zero premium collar (consisting of a put option acquired by Vivendi and a call option sold by Vivendi), enabling Vivendi to
secure an unrealized capital gain between $427 million and $532 million during this period. In the Consolidated Financial Statements for
the year ended December 31, 2015, this collar was accounted for as a fair value hedge, in accordance with IAS 39. As of December 31,
2015, pursuant to the credit support agreement related to the collar hedge, Vivendi established a cash deposit in favor of the
counterparty, for $480 million, i.e., €439 million, corresponding to the fair market value of the collar hedge as of this date, net of a
$50 million deductible. Given the appreciation of Activision Blizzard stock market price, the unfavorable change in time value of the
collar hedge amounted to €16 million, classified as “other financial charges” in the Consolidated Statement of Earnings. On January 13,
2016, Vivendi entirely unwound this instrument and sold the shares that it held. The cash proceeds from these transactions amounted to
$1,063 million (i.e., €976 million). The unwinding of these transactions also enabled Vivendi to recover the cash deposit of €439 million.
d. Not applicable, as the Numericable-SFR shares were sold in May 2015.
Equity market value risks
In 2015, as part of a sustainable investing strategy, Vivendi created an equity portfolio comprising listed and non-listed French and European
companies in the telecommunication and media sectors, which are leaders in the production and distribution of contents. As of December 31,
2015, this portfolio was mainly comprised of minority interests in Telecom Italia, Telefonica, Ubisoft, Gameloft and Activision Blizzard, and it
represented an aggregate market value of approximately €6 billion (before taxes). Except for the remaining interest in Activision Blizzard sold
on January 13, 2016 (please refer above), Vivendi is exposed to the risk of fluctuation in the value of these interests: as of December 31,
2015, the net unrealized gain with respect to the interests in Telecom Italia (please refer to Note 11), Telefonica, Ubisoft and Gameloft
amounted to €95 million (before taxes). A uniform decrease of 10% in the value of all of these shares would have a cumulative negative
impact of €370 million on Vivendi’s financial position; a uniform decrease of 20% in the value of all of these shares would have a cumulative
negative impact of €815 million on Vivendi’s financial position.
Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2015 Vivendi /70