2012 FIRST HALF RESULTS. August 31, 2012

Transcription

1 August 31,

2 INTRODUCTORY MATTERS Forward-Looking Information This document contains certain forward-looking statements which speak only as of the date on which they are made. Forward-looking statements relate to projections, anticipated events or trends, future plans and strategies, and reflect Havas current views about future events. They are therefore subject to inherent risks and uncertainties that may cause Havas actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially from expected results include changes in the global economic environment or in the business environment, and in factors such as competition and market regulation. For more information regarding risk factors relevant to Havas, please see Havas filings with the Autorité des Marchés Financiers (documents in French) and, up to October 2006, with the U.S. Securities and Exchange Commission (documents in English only). Havas does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise. Net New Business Net new business represents the estimated annual advertising budgets for new business wins (which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients) less the estimated annual advertising budgets for lost accounts. Havas' management uses net new business as a measurement of the effectiveness of its client development and retention efforts. Net new business is not an accurate predictor of future revenues, since what constitutes new business or lost business is subject to differing judgments, the amounts associated with individual business wins and losses depend on estimated client budgets, clients may not spend as much as they budget, the timing of budgeted expenditures is uncertain, and the amount of budgeted expenditures that translate into revenues depends on the nature of the expenditures and the applicable fee structures. In addition, Havas' guidelines for determining the amount of new business wins and lost business may differ from those employed by other companies. The average net debt (quarterly, semi-annually and annually) is calculated as the difference between the structured gross debt under IFRS (OBSAAR, Eurobond, used credit lines, etc ) and the cash in bank and cash equivalents measured on a daily basis for the main countries integrated in the International cashpool; for the other countries, the average net debt taken into account is the net debt position at book value at the end of each quarter and the monthly average net debt in The average net debt also includes E/O and B/O debts which are re-evaluated at December 31, and adjusted according to actual payments. 2

3 H KEY FIGURES Revenue: 829M in H1 2012, increasing by +8.4% and by +2.7% in terms of organic growth (at constant exchange rates and scope) Emerging markets represent 16% of total revenue Digital accounts for 25% of total revenue Income from Operations reached 99M in H against 95M in H1 2011, improving by +4%. Income from operations margin reached 11.9% and operating margin was 11.2% Net income, Group share of 56M in H up +5.7% Earnings per share as determined on the basis of outstanding shares as at June 30, 2012 amounts to 15 cents ( ), +20% vs H Net debt of 510M as of June 30, 2012 compared to 105M. Average net debt (1) was 156M in H vs 22M in H1 11 (1) Definition of «Average net debt» on page 2 3

4 H KEY FACTS Acquisition of 5 companies, in line with our strategic objectives Victor & Spoils Ignition Creative Lynx Boondoggle Mediaxis Share buyback and cancellation of 12% of Havas capital for 253M Tender offer for 2006 BSAARs to limit their long term dilutive effect Creation of Havas Village in Paris 4

5 RECENT ACQUISITIONS AND START-UPS New York Shanghai San Francisco Turkey Asia India Australia

6 SUSTAINED ORGANIC GROWTH OVER H Organic Growth Q1 Q2 H EUROPE 1.1% 1.9% 1.5% of which France 5.1% 0.5% 2.6% UK -0.2% 2.3% 1.1% Rest of Europe -2.4% 3.1% 0.6% NORTH AMERICA 3.6% 0.5% 2.0% REST OF WORLD 12.3% 6.7% 9.1% of which Asia Pacific & Africa 12.2% 9.0% 10.5% Latin America 12.4% 4.8% 8.0% TOTAL 3.5% 2.1% 2.7% 6

7 PROGRESSION OF EMERGING COUNTRIES STILL ON TRACK H1 11 H1 12 APAC & LATAM APAC & LATAM Europe 14% Europe 16% 53% 50% 33% 34% North America North America 7

8 WELL DIVERSIFIED CLIENT PORTFOLIO Other 20.8% 13.7% Healthcare Industry 2.7% Services 2.8% 3% Cosmetics 4.4% Retail 12.1% Tourism and leisure 10.7% Finance 9.1% FMCG 10% TMT 10.7% Automotive 8

9 Net New Business (1) billings of 1.3 bn over H vs 940M over H (1) Definition of «Net New Business» on page 2 9

10 RECENT NEW BUSINESS + 10

11 RESULTS & FINANCIAL STRUCTURE H

12 STABLE OPERATING MARGIN OVER H M H1 10 H1 11 H1 12 Variance 2012/2011 Revenue % Organic growth +1.8% +5.6% +2.7% Compensation (451) (471) (510) +8% Compensation in % of revenue 61.6% 61.6% 61.5% Income from operations % Income from operations margin (in %) 11.5% 12.4% 11.9% Operating Income % Operating income margin (in %) 11.1% 11.1% 11.2% Net income, Group share % (in % of revenue) 6.7% 6.9% 6.8% Earnings per share (in ) * +20% * Adjusted EPS as determined on the basis of Havas SA outstanding capital shares at June 30,

13 CONSOLIDATED P&L M H1 11 Revenue 765 Compensation (471) Other expenses and income from operations (199) Income from operations 95 Other operating expenses and income (10) Operating income 85 Net financial expense (14) Income of consolidated companies before tax Income tax (16) Net income of consolidated companies 55 Minority interests (2) Net income, Group share H (510) (220) 99 (6) 93 (14) 79 (21) 58 (2) 56 Variance 2012/ % +4% +9% +11% +6% +6% Headcount at end of period 14,766 15,540 +5% 13

14 CASH FLOW STATEMENT over the last 12 months M H1 11+ H2 10 H1 12+ H2 11 Net income of consolidated companies Non cash items Cost of net debt Changes in WCR Cash flow from operations Total investments Dividends Net proceeds from borrowings Financial interests and changes in equity * Forex effect Change in net cash position Change in net cash position excl. exceptionnal** * OPRA / OPAS effect = 269M ** OPRA, OPAS, real estate acquisition 14

15 CONSOLIDATED BALANCE SHEET AT 06/30/12 M Assets 06/30/11 06/30/12 Liabilities and equity 06/30/11 06/30/12 Intangibles and tangibles assets 1,603 1,926 Consolidated equity 1,175 1,079 Net deferred tax Provisions WCR (303) (317) Net financial debt Total 1,387 1,699 Total 1,387 1,699 15

16 NET DEBT INCLUDES CAPITAL BUY-BACK AND REAL ESTATE INVESTMENT Net debt of 510M as of 06/30/2012 compared to 105M as of 06/30/2011, Average net debt of 156M in H compared to 22M in H H H H H H H Average Closing

17 SIGNIFICANT BALANCE SHEET OPTIMISATION Net debt as of June 30 ( M) Actual Restated (1) (1) : Net Debt excluding earn-outs and buy-outs, the purchase of the Havas HQ building in Puteaux and the capital and warrant buy-back in

18 LIQUIDITY AS OF JUNE 30, 2012 M Not used mid-term committed credit lines 416 Not used 364 day committed credit lines 78 Cash and cash equivalents 409 Total of potential liquidity 903 Available uncommitted credit lines 181 Available commercial paper program 165 Total of financing ressources 1,249 18

19 FINANCIAL RATIOS OVER THE LAST 12 MONTHS M June 30,11 June 30,12 Net Debt Total equity 1,175 1,079 Gearing Adjusted EBITDA (1) Net Debt / Adjusted EBITDA 0.4x 1.9x Averaged Net Debt (2) Averaged Net Debt / Adjusted EBITDA 0.1x 0.6x Financial Result Adjusted EBITDA / Financial Result 8.0x 8.5x (1): Adjusted EBITDA = income from operations plus intangible and tangible fixed assets depreciation and amortization, stock option charges and other compensation defined by IFRS 2 (2): Definition of «Average net debt» on page 2 19

20 CONCLUSION Sustained organic growth in H1 Confirmed objective to increase operating margins in the long term Better balance sheet leverage Significant EPS progression of +20% vs H Ongoing acquisition policy focused on digital Strong new business performance Continued success growing global clients Unique digital at the core model + digital native leadership 20

21 Further information about Havas is available on the company s website: Follow us on Twitter :