Q3 REVENUE October 22, 2015

Transcription

1 Q3 REVENUE 2015 October 22, 2015

2 DISCLAIMER This presentation contains forward-looking statements. The use of the words "aim(s)," "expect(s)," "feel(s)," "will," "may," "believe(s)," "anticipate(s)" and similar expressions in this presentation are intended to identify those statements as forward looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Other than as required by applicable securities laws, Publicis Groupe undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. Publicis Groupe urges you to review and consider carefully the various disclosures it has made concerning the factors that may affect its business, including the disclosures made under the caption "Risk Factors" in the 2014Registration Document filed with the French financial markets authority (AMF). 2

3 HIGHLIGHTS Q3 organic growth at +0.7%, with unexpectedly no growth in September Contrasted performance by geography: slow growth in Europe and the US, improving Asia Pacific, Latin America deteriorating further Strong revenue growth in Q3 2015: +33.0% Q3 revenue up 20.5% at constant currencies Sapient back to growth in Q3 2015, as planned: circa 5% Media palooza : positive outcome, above market expectations 3

4 REVENUE BY GEOGRAPHY Q (EUR million) Q Q Organic growth Reported growth Europe % +20.9% North America 1, % +49.2% Asia Pacific % +22.1% 2013 Latin America % -16.3% Middle East Africa % +27.1% Total 2,325 1, % +33.0% 4

5 REVENUE BY GEOGRAPHY 9M 2015 (EUR million) 9M M 2014 Organic growth Reported growth Europe 1,894 1, % +21.2% North America 3,767 2, % +50.5% Asia Pacific % +25.0% 2013 Latin America % -7.0% Middle East Africa % +26.4% Total 6,867 5, % +34.5% 5

6 9M 2015 ORGANIC GROWTH BY COUNTRY > 5% From 0 to 5% Argentina, Australia, Germany, India, Mainland China, Poland, South Africa, South Korea, UAE Chile, France, Hungary, Israel, Singapore, Spain, Switzerland, USA < 0% Brazil, Canada, Italy, Mexico, Russia, Turkey, UK 6

7 DIGITAL 9M M 2014 Reported Growth EUR million ,5% % of Group revenue 51.9% 41.6% 9M 2015 organic growth +4.1% 7

8 SAPIENT: GROWTH BACK TO POSITIVE AS PLANNED AND INTEGRATION ON TRACK Q3 organic growth +5% Improved performance in Q after slight decline in H1 Oil sector back to growth Integration going according to plans 8

9 NET CASH / (DEBT) (in EUR million) Average Net Cash / (Debt), year-to-date Net Cash / (Debt), as of September Cash (93) (584) (550) (2,305) (3,111) September 30, 2013 September 30, 2014 September 30,

10 LIQUIDITY AS OF SEPTEMBER 30, 2015 (EUR million) TOTAL DRAWN AVAILABLE Committed Facilities AVAILABLE AS OF SEPT 30, day revolving credit facilities year revolving credit facility (1) year syndicated facility (Club Deal) (2) 2,000-2,000 1,200 Total Committed Facilities 2, ,207 1,915 Cash and Marketable Securities 1,006-1, Total liquidity 3, ,213 2,690 Group other uncommitted facilities BBB+ rating reaffirmed with liquidity assessment upgraded to strong (3) (1) 400m maturing in 2018, 67m maturing in 2017, 50m maturing in 2019 (2) Maturing in 2020 (3) As of October 21, Liquidity assessment upgraded to strong from adequate 10

11 CONCLUSION

12 PUBLICIS GROUPE HAS PERFORMED ABOVE MARKET S EXPECTATIONS IN «MEDIA PALOOZA» (1) Citibank Coca-Cola US Coty Etihad General Mills US Johnson & Johnson US Kraft Heinz Mondelez US Rest of the world SC Johnson Sears Taco Bell Visa PUBLICIS GROUPE DENTSU HAVAS IPG OMNICOM WPP (1) RECMA and media reviews announced between April and September 2015 according to press reports 12 Positive net new business for Publicis Groupe, above market s expectations After 60% of media reviews have come to an end Publicis Groupe has been able to add news business thanks to its digital capabilities Some reviews yet to come to a conclusion for the industry P&G North America, Unilever, 21st Century Fox, Sony, Volkswagen, L Oreal USA

13 2015 OUTLOOK ZenithOptimedia s 2015 forecasts cut again! Full year Publicis Groupe organic growth expected to be around 1% Double digit increase in FY2015 reiterated on a reported basis Revenue Operating margin Headline EPS Free cash flow (1) above 1 billion (1) Before change in WCR 13

14 INTEGRATED ORGANIZATION LEVERAGING ON THE BEST EXPERTISES Publicis.Sapient 14

15 GREATER OPPORTUNITIES THAN CHALLENGES Cautious view on Q4 ( quarter of adjustments for advertisers ) - Short-term budget cuts in an uncertain environment - Latam difficulties Challenges Significant changes to media landscape Clients facing challenges with new comers, changes in consumer behavior (empowerment, always on ) exercising pressure on agencies Opportunities Positive outcome in media palooza Exposure to digital Publicis.Sapient, the integrated digital platform to serve the Groupe s clients with the best expertises Strategic partnership in artificial intelligence with Lucid San Francisco seminar : unique positioning combining creativity and technology, in an integrated organization 15

16 Q&A

17 APPENDICES

18 9M REVENUE IN USD MILLION Revenue 6,919 7, % SEPT YTD 2014 SEPT YTD

19 9M 2015 : REVENUE BY ACTIVITY Analog & Digital Media = 23% SAMS 13% 15% in % 14% in % 29% in 2014 Media 52% 42% in 2014 Digital Advertising 19

20 9M 2015: REVENUE BY SECTOR (1) SEPT YTD 2015 SEPT YTD 2014 Leisure/Energy/Luxury Food and beverage Other Retail 6 15 Non Food consumer products 14 Financial Other Retail Leisure/Energy/Luxury Financial Non Food consumer products Food and beverage TMT Automotive Automotive TMT Healthcare Healthcare (1) Based on 2,854 customers representing 85% of Group revenue 20

21 REVENUE & ORGANIC GROWTH CALCULATION (EUR million) 9M Q3 Q2 Q revenue 5,106 1,748 1,761 1,597 Currency impact revenue at 2015 exchange rate (a) 5,766 1,930 2,024 1, revenue before impact of acquisitions (1) (b) 5,825 1,944 2,052 1,829 Revenue from acquisitions (1) 1, revenue 6,867 2,325 2,439 2,103 Currency impact (EUR million) (EUR million) 9M Q3 Q2 Q1 GBP USD Other Total Organic growth (b/a) +1.0% +0.7% +1.4% +0.9% (1) Acquisitions (L&K India, Hawkeye, Lead 2 Action, Salter Baxter, Crown, Proximedia, Ambito 5, Liquorice, Nurun, Turner Duckworth, Tangerine, Run, ZME, Machine, BrandsRock, 3Share, Relevant 24, Monkees, ZO Puerto Rico, AKM3, Vivid, Epic, Spindrift, Star Reacher, Sapient, B2B, Expicient, Practice ileo Romania, Relaxnews, C, Match Media, Domani, AKOM 360, TMC, Voden, 2DataFish, Frubis, The Solutions Group ), net of disposals. (2) EUR = USD1.114 in 9M 2015 vs. USD1.355 in 9M 2014 EUR = GBP0.727 in 9M 2015 vs. GBP0.812 in 9M

22 9M 2015 ORGANIC GROWTH BY REGION AND ACTIVITY Europe North America Asia Pacific Latin America Middle East / Africa Total Digital +7.2% +1.4% +14.2% +14.7% +11.5% +4.1% Analog -1.8% +0.3% -0.2% -10.1% -0.2% -1.2% 2013 Total +1.4% +0.9% +3.5% -6.0% +2.2% +1.0% 22

23 Q REVENUE BY GEOGRAPHY (ALTERNATIVE BREAKDOWN) (EUR million) Q Q (1) Europe excluding Russia and Turkey (2) BRIC = Brazil, Russia, India, China MISSAT = Mexico, Indonesia, Singapore, South Africa, Turkey Reported growth Organic growth Europe (1) % +0.6% North America 1, % +0.4% BRIC + MISSAT (2) % +0.2% Rest of the world % +3.6% Total 2,325 1, % +0.7% 23

24 9M 2015 REVENUE BY GEOGRAPHY (ALTERNATIVE BREAKDOWN) (EUR million) 2013 SEPT YTD 2015 (1) Europe excluding Russia and Turkey (2) BRIC = Brazil, Russia, India, China MISSAT = Mexico, Indonesia, Singapore, South Africa, Turkey SEPT YTD 2014 Reported growth Organic growth Europe (1) 1,849 1, % +1.5% North America 3,767 2, % +0.9% BRIC + MISSAT (2) % -0.5% Rest of the world % +2.2% Total 6,867 5, % +1.0% 24

25 9M 2015 ORGANIC GROWTH BY REGION AND ACTIVITY (ALTERNATIVE BREAKDOWN) Europe (1) North America BRIC + Missat (2) Rest of the World Total Digital +7.1% +1.4% +15.8% +12.3% +4.1% Analog -1.6% +0.3% -4.6% -1.1% -1.2% 2013 Total +1.5% +0.9% -0.5% +2.2% +1.0% (1) Europe excluding Russia and Turkey (2) BRIC = Brazil, Russia, India, China MISSAT = Mexico, Indonesia, Singapore, South Africa, Turkey 25

26 GROSS DEBT, AS OF SEPTEMBER 30, 2015 Breakdown by MATURITY (EUR million) Total Sep Sep 2016 Sep 2016 Sep 2017 Sep 2017 Sep 2018 Sep 2018 Sep 2019 Sep 2019 onwards Eurobond 2021 (1) Eurobond 2024 (1) Medium term loan 1, Earn out / Buy out Other debt (1) Total gross debt 4, ,032 (1) Including fair value of associated derivatives No covenants 26

27 NET DEBT AS OF SEPTEMBER 30, 2015 Breakdown by CURRENCY (EUR million) Total EURO USD GBP Others Eurobond 2021 (1) (2) Eurobond 2024 (1) (2) Medium term loan 1, Earn out / Buy out Other (1) Cash & marketable securities (3) (1,006) (59) (140) (36) (771) Net debt (cash) 3,111 1,016 2, (475) (1) Including fair values of associated derivatives (2) 2 tranches of the Eurobond issued in December 2014 swapped in USD (3) After impact of currency swaps 27

28 Breakdown by RATE NET DEBT AS OF SEPTEMBER 30, 2015 (EUR million) Total Earn-out / Buy-out Fixed rate Floating rate Eurobond 2021 (1) (2) Eurobond 2024 (1) (2) Medium term loan 1, ,429 Other debt (1) Total gross debt excluding earn out/buy out 3,691-1,557 2,134 Earn out / Buy out Cash & marketable securities (1,006) - - (1,006) Net debt (cash) 3, ,557 1,128 (1) Including fair values of associated derivatives (2) The 7 and 10 years tranches of the December 2014 bonds issues have been swapped into USD at fixed rate 28