Message from Jean-Bernard Lévy, Chief Executive Officer

Jean-Bernard Levy, Chief Executive OfficerVivendi achieved good results in 2010. All performance indicators were up. Our investments, particularly in video games, in Brazil and in Internet access networks in France, were drivers of performance. Despite difficult economic conditions and regulatory and fiscal measures that weigh heavily on the Group’s investment capacities, 2011 should reflect a slight growth in profits on a like-for-like basis, and a cash dividend maintained at a high level.

After the sale of our stake in NBC Universal, Vivendi has sole control of all of its assets. The digital content consumer is more than ever the central focus of the Group’s priorities. To meet consumer expectations, Vivendi plans to develop opportunities to share know-how and common projects between the businesses. Our objective is to stimulate innovation and speed up organic growth.

Activision Blizzard, whose games Call of Duty, Starcraft and World of Warcraft achieved record sales in 2010, will continue investing to seize opportunities with online games around the world. These new developments include Blizzard Entertainment games, particularly Diablo, the next Call of Duty® titles, and the development of a digital community around this franchise. Scheduled for end 2011, Skylanders Spyro’s Adventure® will combine the world of toys, video games and Internet in a novel way.

The digital content consumer is more than ever the central focus of the Group's priorities.

In the music market, Universal Music Group’s priorities are focused on pursuing creative investments. UMG will continue to invest heavily in artists and to support and develop new digital platforms and services. The success of Vevo, the leading website for music videos in the USA, is confirmed. Eminem’s Recovery album and that of Take That were respectively number one in sales in the USA and the United Kingdom in 2010.

SFR signed an agreement with La Poste to launch a virtual mobile operator (MVNO) in the second quarter 2011, which should become one of the leaders in this market. The neufbox Evolution has been a success. It already had over 200,000 customers by the end of February 2011. Factors behind SFR’s good results include the explosion of smartphone sales, the growing number of new broadband Internet customers and the dynamism of the Business activity.

Maroc Telecom Group is in an exceptionally dynamic phase. Its customer base has grown due to innovative offers and services. The mobile park is steadily growing in Morocco and also in its subsidiaries in Africa, where the Group is continuing major investment. Because of its long-term commitment to serving African economies and businesses, it has the capacity to deploy digital infrastructures and services, which are the vectors for information flow and the spread of knowledge, even to the remotest areas.

GVT shows spectacular growth prospects. It will continue its geographic expansion and it plans to cover another 80 cities in the next five years. It has kept its competitive edge with ultra-fast bandwidth at very competitive prices, by capitalizing on its network, which is the most modern in Brazil, on its unrivalled quality of service, and on the introduction of a pay-TV offering in 2011.

The very positive dynamic at Canal+ Group continues, with a flurry of offerings based on new high-definition technologies, the move to all-digital, an offer launched in Vietnam and a more international profile via its subsidiary, Canal+ Overseas. The Group offers subscribers innovative services to take full advantage of its programmes, at any time, with mobility.

Vivendi’s good performance is accompanied by a proactive and rigorous sustainable development policy. Its results have earned the praise of non-financial rating agencies and analysts. It is essential to share views or experiences with various representatives of civil society in this digital revolution context.

Vivendi has a specific responsibility, which is to help current and future generations satisfy their communication needs, to feed their curiosity, to develop their talents and to promote cross-cultural exchanges and open-mindedness.

Sustainable development criteria were integrated into the senior executives’ variable pay in 2010 and tied to Vivendi’s specific challenges, such as coaching youth on digital practices, promoting cultural diversity or knowledge sharing. Vivendi is the first company in the CAC 40 to integrate this type of social objective.

Vivendi is also continuing to develop its communication with individual shareholders. It increasingly seeks occasions to meet and exchange with them. It has created a Shareholders’ Club and Shareholders’ Committee, which provide genuine links between Management and all individual shareholders.

Vivendi is focusing on organic growth and innovation in 2011, even if it means pushing the boundaries of our activities. I really want to thank all of our teams who, I know, will innovate to meet our customers’ expectations and support the changes our businesses face, at the center of the digital world.