Media

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Media CommunicationsQ3, 2001 Operating Results

• October 30, 2001

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Important Legal Disclaimer

• This document contains forward-looking
  statements as that term is defined in the
  Private Securities Litigation Reform Act of 1995.
  Such forward-looking statements are not
  guarantees of future performance. Actual results
  may differ materially from the forward-looking
  statements as a result of a number of risks and
  uncertainties, many of which are outside our
  control, including but not limited to the risk
  that recently acquired operations will not be
  integrated successfully that the synergies
  expected to be created as a result of recent
  acquisitions will not materialize that Vivendi
  Universal will be unable to further identify,
  develop and achieve success for new products,
  services and technologies that Vivendi Universal
  will face increased competition and that the
  effect on pricing, spending, third-party
  relationships and revenues of such competition
  will limit or reduce Vivendi Universals revenue
  and/or income that Vivendi Universal will be
  unable to establish and maintain relationships
  with commerce, advertising, marketing,
  technology, and content providers and that
  Vivendi Universal will be unable to obtain or
  retain, upon acceptable terms, the licenses and
  permits necessary to operate and expand its
  businesses as well as the risks described in the
  documents Vivendi Universal has filed with the
  U.S. Securities and Exchange Commission.
  Investors and security holders may obtain a free
  copy of documents filed by Vivendi Universal with
  the U.S. Securities and Exchange Commission at
  www.sec.gov or directly from Vivendi Universal.

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Key Highlights

• Vivendi Universal continued to deliver strong
  growth during the third quarter 2001 and within
  the first nine months of this year has generated
  100 of its targeted incremental EBITDA
• - Incremental EBITDA of 1,050m euros versus first
  nine months of 2000
• - Full Year target 35
• 1.12bn euros over Euro 3.2bn October guidance
• Slightly more than Euro 1.0bn over Actual
  FY2000 results of Euro 3.3bn
• We confirm FY01 targets 10 top line growth
  (excluding USG Filmed Entertainment), 35 EBITDA
  based on October 2000 guidance.
• EBITDA FY 2001 should be slightly above Euro 5bn

3 Including 9 months of Maroc Telecom, 6 months
of Houghton Mifflin and 4 months of MP3
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Scope of consolidation

• Changes in scope of consolidation
• Maroc Telecom has been consolidated as of April
  2001, Houghton Mifflin as of July 2001 and
  MP3.com as of September 2001.
• France Loisirs, within VUP, has been
  deconsolidated as of January 1st, following its
  disposal to Bertelsmann

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Q3, 2001 business segment results
Telecom, Internet, VUP, UMG, USG U.S.
GAAP Canal French GAAP
Quarter Ended September, 30
in Euro m
2001 PF (1)
2000 PF
PF Growth
REVENUE Music PublishingPublishing excluding
Houghton Mifflin TV Film TelecomsTelecoms
excluding Maroc Telecom Internet
1,459 1,401786 2,324 2,073 1734 46
1,519 1,294752 2,121 1,775 1468 33
-4 8 4 10 17 18 40
Total Media Communications RevenueTotal
Media Communications Revenue excluding Maroc
Telecom, Houghton MP3.com
7,3036,328
6,7425,871
8 8
EBITDA Music PublishingPublishing excluding
Houghton Mifflin TV Film TelecomsTelecoms
excluding Maroc Telecom InternetHolding
Corporate
250 402 127 328 640493 (67)(67)
235 350 111 190 488357(58)(62)
6 1515 73 31 38 -17-8
Total Media Communications EBITDA Total Media
Communications EBITDAexcluding MT, HM and
MP3.com
1,486
1,143
30
1,064
781
36
5 (1) proforma results include MP3 as if it was
consolidated for the entire quarter
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First 9 Months, business segment results
9 Months Ended September, 30
in Euro m
2001 Actual
2001 PF
2000 PF
PF Growth
REVENUE Music PublishingPublishing excluding
Houghton Mifflin TV Film TelecomsTelecoms
excluding Maroc Telecom Internet
4,453 3,2622322 6,213 4,791393387
4,445 3,0122397 6,649 5,550484780
4,445 3,4482397 6,649 5,8884847 136
0 6 3 7 23 23 55
9 9
19,73618,409
20,56618,409
Total Media Communications Revenue
18,80616,946
Total Media Communications Revenue excluding
Maroc Telecom, Houghton MP3.com
EBITDA Music PublishingPublishing excluding
Houghton Mifflin TV Film TelecomsTelecoms
excluding Maroc Telecom InternetHolding
Corporate
702 625350 926 1,7761441 (156)(181)
702 635350 926 1,9191441 (157)(181)
625 570312 482 1,275910 (134)(188)
12 1212 92 51 58 -17 3
3,692
Total Media Communications EBITDA Total Media
Communications EBITDA excluding MT, HM and
MP3.com
3,844
46
2,629
3,081
3,081
52
2,030
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Divisional Highlights
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Music

• Revenues declined 4 in the quarter due to weak
  market conditions in several major markets,
  particularly in Germany and Latin America
• Q3 major releases (Mary J. Blige, Jay Z, Ja Rule)
  did not achieved the same level of volume as did
  the Q3 2000 major releases (Eminem, Nelly, 98
  Degrees)
• Q3 EBITDA grew by 6 to Euro 250M. Improved
  margins resulting from increase licensing income,
  a change in product mix, a reduction in
  overheads and the increased contribution from
  music publishing countered the impact of very
  poor trading conditions in Latin America
• YTD, UMG revenues are flat and EBITDA is up 12
  to Euro 702m.UMG continues to be a Worldwide
  leader with market share increases in France, the
  UK and Australia.

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Music Update

• Strong Q4 release schedule - Bee Gees (hits
  compilation), Andrea Bocelli, The Cranberries,
  DMX, Lighthouse Family, S Club 7, Mylene Farmer,
  Enrique Iglesias, Ludacris, No Doubt, and Sting
  (Live).
• Pressplay
• Pressplay will have the largest online
  subscription-based music catalog for streaming
  and downloading online including
• Universal Music Group
• Sony
• EMI
• Six Independent Labels (Madacy, Nacarre, OWIE,
  Razor Tie, Roadrunner and Rounder)
• Pressplay will be launched in Q4 2001

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Publishing

• In Q3, VUP reported a 4 increase in revenue to
  Euro 786m and a 15 increase in EBITDA to Euro
  127m, excluding Houghton Mifflin
• Games division more than doubled Q3 EBITDA and
  increased revenue by 7
• Successful launch of Arcanum and Throne of
  Darkness by Sierra after its reorganization
• Diablo II Expansion pack continues to show good
  performance
• Education and Literature achieved very good
  results in the quarter with revenues up 7 and
  EBITDA up 12 - due in part to a strong back to
  school program in all major countries, successful
  launch of Adibou 3 in France and Jumpstart in the
  US, and release of the 2002 Petit Larousse.
• Houghton Mifflin, consolidated for the first time
  this quarter, with revenues growing 14 to Euro
  615m and EBITDA growing 15 to Euro 275m.
• Strong performance for K-12 division in a high
  adoption year due to issuance of revised textbook
  editions and success of the new high school math
  program
• College division outperformed the industry with
  8 growth
• Successful launch of the first Tolkien books.
• YTD, publishing revenues increased by 6 and
  EBITDA was up 12 on a proforma basis
  (respectively 3 and 12 excluding Houghton
  Mifflin).

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TV Films (1)

• TV and Film performance overview
• In Q3, revenue was up 10 to Euro 2,324 bn.
  Total EBITDA increased by 73 to Euro 328m.
• YTD EBITDA nearly doubled to Euro 926m, and
  revenues reached Euro 6.6bn, a 7 increase, 11
  excluding USG Filmed Entertainment
• USG
• Third quarter revenues were up 9 to Euro 1.2bn
  ( 4 growth YTD) with EBITDA more than doubling
  to Euro 202m (more than tripling YTD to Euro
  505m).
• Exceptional results generated by the very
  successful theatrical releases Jurassic Park III
  (more than 380m of Worldwide box office to
  date), American Pie II (more than 217m of
  Worldwide box office to date) coupled with the
  continuing success of the Mummy Returns and The
  Fast the Furious.
• Strong Q4 video release schedule includes
  Jurassic Park III, Mummy Returns and Dr. Seuss
  How The Grinch Stole Christmas
• Recreation revenue increased by 10 in Q3 and
  EBITDA increased 11 due to the success of
  Universal Studios in Japan offsetting a decrease
  in attendance at US parks following the events of
  September 11th.

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TV Films (2)

• Canal revenues increased 11 to Euro 1,062m
  (11 YTD), and EBITDA increased 25 to Euro 121m
  (26 YTD).
• Pay TV revenues were up 14 and EBITDA up 32
• Steady growth at Canal Satellite (subscriptions
  up 15, revenue up 18, EBITDA up 49)
• Strong performance in Italy (subscriptions up
  8, revenue up 17 and EBITDA losses reduced by
  41)
• Digital subscribers have reached nearly 6m (54
  of total subscribers), up 25 over the last 12
  months. Total subscriptions are 15.6m at
  September 30, 2001.

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Telecoms

• Telecoms (excluding Maroc Telecom) generated 18
  revenue growth and 38 EBITDA growth.
• Mobile EBITDA increased 31 to Euro 499m on a 13
  increase in revenue with 11.75 million customers
  as of September 30, 2001
• Fixed Telephony revenues increased 77. Losses
  reduced by 13 despite new business costs
  (broadband, hosting, call center)
• YTD, telecom revenues excluding Maroc Telecom
  increased by 23 and EBITDA by 58.
• Maroc Telecom Q3 2001 revenue up 10 to Euro 339m
  with EBITDA of Euro 147m up 12
• Revenues reached Euro 1,041m up 21 versus
  proforma 2000, and EBITDA reached Euro 478m up
  31 YTD.

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Focus on Mobile

• SFR continued to focus on growing its subscriber
  base while substantially improving profitability.
• Mobile revenues are up 20 to Euro 4.1bn YTD
• Sustained penetration of French Mobile market at
  57 versus 49.4 EOY 2000
• Market share stands at 34 at 30.09.01
• Q3 market share on net adds of 36.6 versus 27.6
  last year
• YTD, number of gross adds are 324,000 higher than
  last year
• EBITDA has increased by 53 to Euro 1,454m, YTD
  EBITDA margin reached 39, up from 30, due to
• Higher ARPUs excluding mix effect, at Euro 44
• Data services 7.9 of billed revenues
• Monthly churn rate stable at 2 YTD
• SACs down 20 vs. 2000, to Euro 187 YTD, and Euro
  164 in Q3
• French Governments decision to reduce the UMTS
  license price will result in Cegetel saving Euro
  2bn in cash flow through the end 2003 and will
  become debt free in 2003.

14 Excluding equipment sales
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Internet

• Revenues increased to Euro 34m from Euro 10m,
  while EBITDA losses rose to Euro 67m from Euro
  58m.
• MP3.com was consolidated in the 3rd quarter, from
  August 26, 2001, and contributed Euro 8.7m in
  revenue and Euro 0.9m in EBITDA
• Scoot Europe was also consolidated in the 3rd
  quarter
• September 2001 MMXI rankings of VU sites
• US VU ranks N7 (vs. N9 in August) in terms of
  unique visitors at 29.4m with a 29.7 reach. N2
  among peer integrated media companies
• US N1 in Games sites (21.9m unduplicated
  visitors) and N2 in Music sites (7m unduplicated
  visitors)
• France VU ranks N 8 with a 35.4 reach (vs.
  32.7 in August).

15 Respectively 46m and ?33m on proforma basis
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Summary

• These strong results show
• Our potential for growth
• Resiliency in recessionary environment
• Achievements due to
• Unique content assets (with global and local
  leadership)
• Global presence (60 revenues in Europe and 30
  in the US)
• Ability to leverage content/distribution assets
  (strong franchise)
• Subscriber based models with direct access to
  consumers (44 of our revenues)
• Distribution assets (digital TV and mobile )best
  positioned to benefit from interactive technology
  evolution

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