Ipsos Group *** Condensed interim consolidated financial statements Half-year ended 30 June 2018

Transcription

1 Ipsos Group *** Condensed interim consolidated financial statements Half-year ended 30 June 2018

2 Half-year 2018 consolidated financial statements Ipsos Group Page 2/29 SUMMARY 1. Consolidated income statement Statement of Comprehensive Income Consolidated balance sheet Consolidated cash flow statement Statement of changes in consolidated shareholders equity... 8 Notes to the consolidated financial statements Information about the company and significant accounting policies Information about the Company Significant accounting policies Changes in the scope of consolidation Segment reporting Segment reporting as at 30 June Segment reporting as at 30 June Segment reporting as at 31 December Reconciliation of segment assets with total Group assets Notes to the income statement Direct costs Other operating income and expenses Other non-operating income and expenses Financial income and expenses Current income tax Earnings per share Adjusted net profit Dividends paid and proposed Notes to the balance sheet Goodwill Other intangible assets Other non-current financial assets Trade receivables Other current assets Equity Net debt Current and non-current provisions Other current and non-current liabilities Cash flow and additional information Changes in working capital requirement

3 Half-year 2018 consolidated financial statements Ipsos Group Page 3/ Cash used by investing activities Off-balance sheet commitments Contingent liabilities Related-party transactions Risk factors Subsequent events Companies included in the scope of consolidation at 30 June Scope of consolidation

4 Half-year 2018 consolidated financial statements Ipsos Group Page 4/29 1. Consolidated income statement Half-year ended 30 June 2018 In thousand euros Notes 30/06/ /06/ /12/2017 Revenue 3 786, ,794 1,780,453 Direct costs 4.1 (273,294) (289,583) (623,787) Gross profit 512, ,211 1,156,666 Payroll (excluding share-based payments) (358,583) (379,309) (747,500) Payroll (share-based payments) (4,944) (5,104) (10,094) General operating expenses (101,280) (111,727) (210,865) Other operating income and expenses 4.2 (2,272) (2,355) (5,931) Operating margin 3 45,628 50, ,275 Amortisation of intangible assets identified on acquisitions (2,240) (2,405) (4,668) Other non-current income and expense 4.3 (1,355) (7,973) (14,364) Income from associates (8) Operating profit 42, ,460 Financing costs 4.4 (9,428) (9,682) (20,380) Other financial income and expenses (1,134) 633 Profit before tax 33,511 29, ,713 Income tax - excluding deferred tax on goodwill 4.5 (8,027) (6,622) (39,118) Deferred tax on goodwill (585) (1,308) 24,482 Income tax 4.5 (8,612) (7,930) (14,636) Net profit 24,900 21, ,076 Attributable to the Group 24,719 21, ,507 Attributable to minority interests Earnings per share (in euros) - Basic Earnings per share (in euros) - Diluted

5 Half-year 2018 consolidated financial statements Ipsos Group Page 5/29 2. Statement of Comprehensive Income Half-year ended 30 June 2018 In thousand euros 30/06/ /06/ /12/2017 Net profit 24,900 21, ,076 Other comprehensive income Hedges of net investments in a foreign subsidiary (7,398) (282) (432) Currency translation differences 969 (38,147) (67,357) Deferred tax on hedges of net investments in a foreign subsidiary 1,602 (745) (1,849) Total of other reclassified comprehensive income (4,826) (39,173) (69,638) Actuarial gains and losses Deferred taxes on actuarial gains and losses - 95 Total of other non-reclassified comprehensive income Total of other comprehensive income (4,826) (39,173) (69,362) Comprehensive income 20,072 (17,513) 59,715 Attributable to the Group 19,501 (16,162) 61,086 Attributable to minority interests 572 (1,351) (1,372)

6 Half-year 2018 consolidated financial statements Ipsos Group Page 6/29 3. Consolidated balance sheet Half-year ended 30 June 2018 In thousand euros Notes 30/06/ /12/2017 ASSETS Goodwill 5.1 1,164,083 1,159,352 Other intangible assets ,517 59,964 Property, plant and equipment 33,426 32,228 Investments in associates 1, Other non-current financial assets ,623 21,425 Deferred tax assets 19,897 21,252 Non-current assets 1,315,555 1,295,136 Trade receivables , ,660 Current income tax 19,415 13,517 Other current assets ,328 75,802 Derivatives financial assets ,462 Cash and cash equivalents , ,267 Current assets 712, ,708 TOTAL ASSETS 2,028,542 2,140,844 In thousand euros Notes 30/06/ /12/2017 LIABILITIES AND EQUITY Share capital ,109 11,109 Share premium 516, ,130 Treasury shares (23,051) (35,235) Other reserves 543, ,717 Currency translation differences (117,735) (112,515) Shareholders' equity - attributable to the Group 929, ,208 Minority interests 18,184 17,290 Shareholders' equity 947, ,498 Borrowings and other long-term financial liabilities , ,432 Non-current provisions 5.8 8,986 8,964 Retirement benefit obligations ,737 26,918 Deferred tax liabilities 63,505 66,450 Other non-current liabilities ,848 18,183 Non-current liabilities 662, ,948 Trade payables 210, ,432 Borrowings and other short-term financial liabilities ,338 25,527 Current taxes 6,343 14,658 Current provisions 5.8 7,087 7,189 Other current liabilities , ,592 Current liabilities 418, ,398 TOTAL LIABILITIES AND EQUITY 2,028,542 2,140,844

7 Half-year 2018 consolidated financial statements Ipsos Group Page 7/29 4. Consolidated cash flow statement Half-year ended 30 June 2018 In thousand euros Notes 30/06/ /06/ /12/2017 OPERATING ACTIVITIES NET PROFIT 24,900 21, ,076 Items with no impact on cash flow Amortisation and depreciation of property, plant and 24,910 12,705 12,796 equipment and intangible assets Net profit of equity associated companies - net of 8 (69) dividends received (217) Losses/(gains) on asset disposals 40 (118) (43) Net changes in provisions 1, (511) Share-based payments expense 4,585 4,747 9,549 Other non-cash income/(expense) 2,157 (109) (778) Acquisition costs of consolidated companies Finance costs 9,428 9,682 20,380 Income tax expense 8,612 7,930 OPERATING CASH FLOW BEFORE FINANCIAL EXPENSES AND TAX PAID 14,636 64,029 56, ,182 Change in working capital requirement ,004 7,383 (37,771) Interest paid (8,332) (9,715) (21,245) Income tax paid (22,349) (24,707) (38,975) CASH FLOW FROM OPERATING ACTIVITIES 49,352 29,637 99,191 INVESTMENT ACTIVITIES Acquisitions of property, plant and equipment and intangible assets Proceeds from disposals of property, plant and equipment and intangible assets 6.2 (20,406) (7,850) (17,518) (Increase)/Decrease of financial assets (5,047) 1,024 (1,201) Acquisitions of companies and consolidated activities, net of acquired cash CASH FLOW FROM INVESTMENT ACTIVITIES FINANCING ACTIVITIES (3,987) - (2,212) (29,343) (6,627) (20,647) Increase/(Decrease) in capital (Purchase)/Proceeds of treasury shares 1,198 3,790 6,399 Increase/(Decrease) in long-term borrowings (43,341) (57,170) (53,315) Increase/(Decrease) in bank overdrafts and short-term debt (838) (338) 86 Purchase of minority interests (8,779) (5,441) (12,785) Dividends paid to Parent-Company shareholders - - (36,414) Dividends paid to minority shareholders of consolidated companies (841) - - CASH FLOW FROM FINANCING ACTIVITIES (52,601) (59,159) (96,030) NET CHANGE IN CASH (32,592) (36,149) (17,485) Impact of foreign exchange rate movements (1,195) (5,662) (10,140) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE SEMESTER 137, , , , , ,267

8 Half-year 2018 consolidated financial statements Ipsos Group Page 8/29 5. Statement of changes in consolidated shareholders equity In thousand euros Share capital Share Premium Own shares Other reserves Currency translation difference Shareholders' equity - attributable to the Group Shareholders' equity Minority interests January 1st, , ,489 (55,905) 492,738 (44,819) 919,612 19, ,417 - Change in capital Dividends paid (35,993) - (35,993) (20) (36,013) - Impact of share buy-out commitments - Delivery of free shares related to 2015 plan (264) - (264) (984) (1,248) ,427 (10,427) Other movements on own shares - (214) 3, ,782-3,782 - Share-based payments taken directly to equity ,747-4,747-4,747 - Other movements (434) - (434) (38) (468) Total Transactions with the shareholders- - (214) 14,358 (42,306) - (28,162) (1,042) (29,200) - Net profit ,631-21, ,660 - Other elements of the Comprehensive Income Hedges of net investments in a foreign subsidiary (598) (598) 316 (282) Deferred tax on hedges of net investments in a foreign subsidiary (745) (745) - (745) Currency translation differences (36,450) (36,450) (1,697) (38,147) - Total of Other Comprehensive Income (37,793) (37,793) (1,381) (39,173) Comprehensive income ,631 (37,793) (16,162) (1,351) (17,513) June 30 th, 2017 Comprehensive income 11, ,275 (41,547) 472,063 (82,611) 875,289 17, ,701 January 1st, , ,130 (35,235) 569,719 (112,515) 949,208 17, ,498 - IFRS 15, change in accounting policy (6 977) - (6 977) ( 22) (6,998) - Dividends paid (37 484) - (37 484) ( 841) (38,325) - Impact of share buy-out commitments ( 317) - ( 317) Delivery of free shares related to 2016 plan (10 905) Other movements on own shares - ( 81) ,198 - Share-based payments taken directly to equity ,585 - Other movements ( 334) - ( 334) 177 (157) Transactions with the shareholders- - ( 81) (44 455) - (32 352) 343 (32,009) - Net profit ,900 - Other elements of the Comprehensive Income Hedges of net investments in a foreign subsidiary (7 267) (7 267) ( 131) (7,398) Deferred tax on hedges of net investments in a foreign subsidiary ,602 1,602-1,602 Currency translation differences Total of Other Comprehensive Income (5,218) (5,218) 392 (4,826) Comprehensive income ,719 (5,218) 19, ,072 June 30 th, 2018 Comprehensive income 11, ,049 (23,051) 543,007 (117,734) 929,380 18, ,564

9 Half-year 2018 consolidated financial statements Ipsos Group Page 9/29 Notes to the consolidated financial statements Half-year ended 30 June Information about the company and significant accounting policies 1.1. Information about the Company Ipsos is a global company which offers surveys solutions for companies and institutions. It is currently the world's third-largest player with consolidated subsidiaries in 89 countries. Ipsos SA is a Société Anonyme (limited liability corporation) listed on Euronext Paris. Its head office is at 35 rue du Val de Marne, Paris, France. On 25 July 2018, Ipsos Board of Directors approved and authorized publication of the half-year financial condensed interim consolidated statements as at 30 June Significant accounting policies Basis of preparation of half-yearly financial information 2018 Ipsos condensed interim consolidated financial statements for half-year 2018 have been drawn up in line with IAS 34 Interim Financial Reporting. These condensed interim consolidated financial statements as of June 30 th, 2018 do not include the entirety of the disclosure requested for the annual consolidated financial statements. These condensed interim consolidated financial statements as of June 30 th, 2018 should be read and understood in conjunction with the consolidated financial statements published as of December 31 st, The accounting principles applied to prepare the condensed interim consolidated financial statements for the half-year ended 30 June 2018, are identical to those used to prepare the consolidated financial statements for 2018 except for amendments of standards and interpretations which are obligatory applicable as from January 1 st, These accounting principles are described in the note 1 of the consolidated financial statements for 2017 and were prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use in the European Union. Standards, amendments and interpretations adopted by the European Union and effective for reporting periods beginning on or after January 1 st, IFRS 15: In late May 2014, the IASB issued IFRS 15 "Revenue from contracts with customers". This standard was developed as part of a joint project between the IFRS and US benchmarks. Since 1 January 2018, IFRS 15 replaces IAS 18 "Revenue" and IAS 11 "Construction contracts". Ipsos began its project to implement IFRS 15 in 2017 with a diagnostic phase during which the various categories of contracts concluded with clients, representative of Ipsos' business, were analyzed by duration and type of contract in the main countries. In parallel, as part of a market research industry working group led by ESOMAR (the global trade union of market research practitioners), the Ipsos Group participated in meetings with two market research companies, also members of ESOMAR, to determine recommendations and "best practices" for the market. These have been published on the Esomar website. Six themes emerge from this reflection: recognition of revenue upon advancement or completion; interpretation of contractual termination clauses; measurement of progress; separation of a contract into several components; capitalization of costs; presentation of financial statements: trade receivables or studies in progress. Ipsos is following all the recommendations of this working group. The Group has been able to draw its first internal conclusions in the second half of the year and presented them to the dedicated Audit Committee on 12 December The contracts that Ipsos signs with its clients are concluded either individually or as part of framework agreements known as MSAs ("Master Service Agreements"). In both cases, the contractual clauses of the general terms and conditions of sale were amended to meet the requirements of IFRS 15, particularly about the possibility for the customer to terminate the contract early for convenience. These clauses have been applied within the Group since the beginning of 2018.

10 Half-year 2018 consolidated financial statements Ipsos Group Page 10/29 The Ipsos Group has also introduced new standard customer invoicing rules from the beginning of 2018, consisting of invoicing contracts with customers on a monthly basis and in advance. This is in line with the practice in other service and business advisory sectors. Revenue from contracts with customers remains recognized on a percentage-of-completion basis under IFRS 15, as the transfer of continuous control over the service performed is demonstrated. Methods that do not reflect the percentage of completion of studies have been discontinued under IFRS 15 in favor of the straightline method, insofar as it reliably reflects the percentage of completion. The Group has applied IFRS 15 since January 1, 2018 and has chosen to apply the simplified retrospective transition method, which consists of restating only the income from contracts impacted by the change in standard and still in force on January 1, 2018, given the immaterial nature of the impact of this change in method on revenue and in accordance with the options proposed by IFRS 15. The impact of this change is recognized in opening consolidated shareholders' equity at January 1, The year 2017 presented for comparison is therefore not restated. On an equity basis published at 31 December 2017 of million, the amount of the equity adjustments in the opening balance sheet amounts to -6.9 million. In addition, for the purposes of calculating organic revenue growth, the old standard (IAS 18) continues to be applied and monitored for 2018 in the Group's internal reporting. The impact on half-year revenue of the application of IFRS15 is 322k. The impacts of IFRS15 on the opening balance sheet are as follows: In thousands of euros ASSETS Notes 31/12/2017 IFRS 15 adjustments 01/01/2018 restated Deferred tax assets 21,252 2,399 23,651 Non-current assets 1,295,136 2,399 1,297,535 Trade receivables and related accounts ,660 (21,383) 596,277 Current assets 845,708 TOTAL ASSETS 2,140,844 (21,383) 824,325 (18,984) 2,121,860 In thousands of euros LIABILITIES Other reserves Shareholders' equity attributable to the company's shareholders Notes 31/12/ , ,208 IFRS 15 adjustments 01/01/2018 restated (6,998) 562,719 (6,998) 942,210 Trade payables and related accounts 259,432 (11,986) 247,446 Current liabilities TOTAL LIABILITIES 476,398 2,140,844 (11,986) 464,412 (18,984) 2,121,860 The impacts of IFRS15 on the income statement as of June 30, 2018 are as follows: In thousands of euros Revenue 3 785, ,000 Notes 30/06/2018 excluding IFRS15 IFRS 15 adjustments 30/06/2018 published Direct costs 4.1 (273,219) (75) (273,294) Gross margin 512, ,706 Operating margin 3 45, ,628 Taxes - excluding deferred taxes on goodwill amortization 4.5 (7,901) (126) (8,027) Net income 24, ,900 Of which attributable to equity holders of the Parent Company 24, ,719 Of which minority interests (185) (3) 181

11 Half-year 2018 consolidated financial statements Ipsos Group Page 11/29 IFRS 9 IFRS 9 has been structured around three main themes: classification and measurement of financial assets and liabilities, impairment and hedge accounting. This standard, approved by the European Union, is mandatory for annual periods beginning on or after January 1, The Ipsos Group has applied IFRS 9 as from 1 January 2018 and due to the nature of its activities, the impacts are not material. - Classification and measurement of financial assets and liabilities: The standard allows the irrevocable choice, upon initial recognition of each financial asset having the nature of an equity instrument within the meaning of IAS 32, to be recognized at fair value against other non-recyclable comprehensive income (FVOCI) or at fair value through profit or loss. Other financial assets include non-consolidated investments of 2,179k at December 31, The Ipsos Group has classified a portion of these securities at fair value through profit or loss (FVOCI) for 1,256k and another portion at fair value through profit or loss for 923k. At June 30, 2018, non-consolidated investments amounted to 6,706k, of which 5,254k in fair value against other comprehensive income (FVOCI) and 1,452k at fair value through profit or loss. - Impairment of financial assets: IFRS 9 requires the recognition of impairment losses up to the amount of expected losses with no significant impact on the Ipsos Group. - Hedge accounting: IFRS 9 has no impact on Ipsos' consolidated financial statements. Only the interest rate swap set up to hedge one third of the $300 million bond issue meets the criteria for fair value hedge accounting under IAS 39, and IFRS9 has no impact on this type of hedging relationship. Amendment to IFRS2 The amendment has three parts and has no impact on the Ipsos Group financial statements. Standards, amendments and interpretations published by the IASB, whose application is not mandatory for annual periods beginning on or after January 1, 2018 IFRS 16 In January 2016, the IASB issued IFRS 16 "Leases", which aligns the accounting for operating leases with the accounting for finance leases (recognition on the balance sheet of a liability for future lease payments and an asset under the right of use). The implementation of this standard will also entail a change in the presentation of the rental expense in the income statement (i.e. Depreciation, amortisation and interest expense) and in the cash flow statement (the amount used to repay the debt will be presented in cash flows from financing activities and the amount allocated to the asset will be presented in cash flows related to investment activities). The standard is applicable for financial years beginning on or after 1 January 2019 and its adoption by the European Union is underway. Analysis of the impacts of this standard is underway Use of estimates When drawing up the consolidated financial statements, the measurement of certain balance sheet or income statement items requires the use of assumptions, estimates and assessments. These assumptions, estimates and assessments are based on information or situations existing on the date on which the financial statements were drawn up and which may in future prove to be different from the actual situation. The assumptions, estimates and assessments used during the half-year closing remain unchanged than the last year ended closing excluding: - the pension liabilities (which are estimated according to a forecast based on the latest available actuarial valuation); - the income taxes for the Group have been calculated according to the effective income tax rate forecasted for the whole year 2017 (see note 4.5); - the goodwill for which the recoverable amount is tested for impairment annually and only when there is an indication that they may be impaired (see note 5.1.1). - changes in commitments to buy out minority interests and earn-out payments. 2. Changes in the scope of consolidation Changes in the scope of consolidation during the first semester 2018 are shown in the following table :

12 Half-year 2018 consolidated financial statements Ipsos Group Page 12/29 Name Type Change in % of voting rights Change in % stake Date of inclusion or exclusion from scope of consolidation Country Ipsos MMA Inc Ipsos LLC Buy-out of minority interests Buy-out of minority interests +2.6% +2.6% 2nd quarter 2018 USA +49% +49% 1st quarter 2018 Vietnam

13 Half-year 2018 consolidated financial statements Ipsos Group Page 13/29 3. Segment reporting The segment reporting presentation is based on internal reporting regularly reviewed by the Management to evaluate the segments performance and to allocate them resources. The Executive Committee is the main operational decision-maker according to IFRS8. The holdings as well as the intra-segments eliminations are included into these three segments, which are reported into the section Other. Furthermore, Ipsos has a single business activity : i.e. survey-based research. Segment assets are made of tangibles and intangibles assets (including goodwill), trade receivables and other receivables. 3.1 Segment reporting as at 30 June 2018 In thousands of euros Europe, Middle East, Africa Americas Asia Pacific Rest of the World Total Revenue 363, , ,799 (31,100) 786,000 Sales to external clients 352, , , ,000 Inter-segment sales 11,004 10,332 10,095 (31,430) 0 Operating margin 14,920 13,879 11,570 5,258 45,628 Depreciation and amortization (7,883) (3,072) (1,750) (0) (12,705) Segment Assets (1) 828, , ,448 (104,910) 1,854,034 Segment Liabilities 317, ,951 80,950 (130,427) 390,883 Capital expenditure for the period 9,018 9,341 2,046 (0) 20,406 (1) Segment assets consist of property, plant and equipment and intangible assets (including goodwill), trade and other receivables. 3.2 Segment reporting as at 30 June 2017 In thousands of euros Europe, Middle East, Africa Americas Asia Pacific Rest of the World Total Revenue 371, , ,535 (32,202) 833,794 Sales to external clients 360, , ,913 (0) 833,786 Inter-segment sales 11,503 10,085 10,622 (32,202) 9 Operating margin 7,918 22,505 11,720 8,573 50,716 Depreciation and amortization (7,707) (3,419) (1,667) (4) (12,796) Segment Assets (1) 839, , ,382 (109,604) 1,907,515 Segment Liabilities 332, ,427 92,664 (146,467) 412,396 Capital expenditure for the period 3,432 1,041 1, ,501 (1) Segment assets consist of property, plant and equipment and intangible assets (including goodwill), trade and other receivables. In thousands of euros 3.3 Segment reporting as at 31 December 2017 Europe, Middle East, Africa Americas Asia Pacific Rest of the World Total Revenue 792, , ,138 (73,609) 1,780,453 Sales to external clients 767, , ,146 (795) 1,780,383 Inter-segment sales 25,442 24,449 22,992 (72,814) 70 Operating margin 71,861 84,331 30,353 (4,269) 182,275 Depreciation and amortisation (15,087) (6,385) (3,434) (4) (24,910) Segment Assets (1) 863, , ,742 (106,496) 1,945,006 Segment Liabilities 354, ,220 92,573 (174,952) 420,739 Capital expenditure for the period 11,686 2,732 3, ,518 (1) Segment assets consist of property, plant and equipment and intangible assets (including goodwill), trade and other receivables.

14 Half-year 2018 consolidated financial statements Ipsos Group Page 14/ Reconciliation of segment assets with total Group assets In thousand euros 30/06/ /06/ /12/2017 Segment assets 1,854,034 1,907,515 1,945,006 Financial assets 31,631 20,558 22,341 Tax assets 39,312 45,394 34,769 Financial instruments assets 84 2,898 1,462 Cash and cash equivalents 103, , ,267 Total Group assets 2,028,542 2,099,448 2,140,844 4 Notes to the income statement 4.1 Direct costs In thousand euros 30/06/ /06/ /12/2017 Interviewer payroll costs (40,407) (45,120) (89,105) Other direct costs (232,887) (244,463) (534,682) Total (273,294) (289,583) (623,787) 4.2 Other operating income and expenses This figure mainly consists of non-recurring items related to currency effects related to commercial transactions. 4.3 Other non-operating income and expenses In thousand euros 30/06/ /06/ /12/2017 Acquisition costs (132) (151) Provision for social dispute in Brazil Costs of restructuring and rationalization Variation of commitments of buy-out of minority interests Capitalization of internal development costs (*) 7,559 (1,422) (2,638) (12,278) (7,054) (6,761) (4,582) (438) 1,558 2,648 Total (1,355) (7,973) (14,364) (*) See note 5.2 on capitalization of internal development expenses

15 Half-year 2018 consolidated financial statements Ipsos Group Page 15/ Financial income and expenses In thousand euros 30/06/ /06/ /12/2017 Interest expenses on borrowings and bank overdrafts (10,323) (11,064) (22,819) Change in the fair value of derivatives Interest income from cash and cash equivalents 666 1,213 2,049 Finance costs (9,428) (9,682) (20,380) Foreign exchange gains and losses 1,095 (924) 526 Other financial items (181) (210) 107 Other financial income and expenses 913 (1,134) 633 Total financial result (8,514) (10,816) (19,747) 4.5 Current income tax Income taxes for the half-year 2017 have been calculated according to the effective income tax rate forecasted for the whole year 2018 in the Ipsos group. Based on these projections, the effective income tax rate amounts to 25.7 % as described below: In thousands of euros 30/06/ /06/ /12/2017 Profit before tax 33,511 29, ,713 Less the share of profit of associates 8 (69) (26) Profit before tax of consolidated companies 33,519 29, ,687 Income tax (8,612) (7,930) (14,636) Effective tax rate 25.7% 26.8% 10.2% 4.6 Earnings per share Earnings per share Weighted average number shares 30/06/ /12/2017 Figure at previous year end 42,980,742 44,625,512 Capital increase (61,341) (271,304) Exercise of options 61, ,304 Own shares (1,105,005) (1,644,770) Number of shares used to calculate basic earnings per share 41,875,737 42,980,742 Number of additional shares potentially resulting from dilutive instruments 1,238, ,148 Number of shares used to calculate diluted earnings per share 43,113,746 43,718,890 Net Profit attributable to equity holders of the Parent (in thousand euros) 24, ,507 Basic earnings per share (in euros) Diluted earnings per share (in euros)

16 Half-year 2018 consolidated financial statements Ipsos Group Page 16/ Adjusted earnings per share Adjusted net profit - group share 30/06/ /06/ /12/2017 Adjusted net profit attributable to equity holders of the Parent 24,719 21, ,507 Items excluded: - Staff costs (share-based payments) 4,944 5,104 10,094 - Amortization of intangibles identified on acquisitions 2,240 2,405 4,668 - Other non-recurring income and expense 1,355 7,973 14,364 - Deferred tax on goodwill amortization (1,814) - Non monetary impact on variation of puts 585 1,308 (24,482) - Income tax on excluded items 479 (2,336) (3,507) - Minority interests on excluded items (416) (246) (446) Adjusted net profit 34,092 36, ,384 Average number of shares 41,875,737 42,757,389 42,980,742 Average diluted number of shares 43,113,746 43,410,148 43,718,890 Basic adjusted earnings per share (in euros) Diluted adjusted earnings per share (in euros)

17 Half-year 2018 consolidated financial statements Ipsos Group Page 17/ Adjusted net profit In thousands of euros 30/06/ /06/ /12/2017 Revenue 786, ,794 1,780,453 Direct costs (273,294) (289,583) (623,787) Gross profit 512, ,211 1,156,666 Payroll - excluding share based payments (358,583) (374,309) (747,500) Payroll - share based payments (*) (4,944) (5,104) (10,094) General operating expenses (101,280) (111,727) (210,865) Other operating income and expense (2,272) (2,355) (5,931) Operating margin 45,628 50, ,275 Amortization of intangibles identified on acquisitions (*) (2,240) (2,405) (4,668) Other non-operating income and expense (*) (1,355) (7,973) (14,364) Income from associates (8) Operating profit 42,026 40, ,460 Finance costs (9,428) (9,682) (20,380) Other financial income and expense (*) 913 (1,134) 633 Profit before tax 33,511 29, ,713 Income tax - excluding deferred tax on goodwill (8,027) (6,622) (39,118) Income tax - deferred tax on goodwill (*) (585) (1,308) 24,482 Income tax (8,612) (7,930) (14,636) Net profit 24,900 21, ,076 Attributable to the Group 24,719 21, ,507 Attributable to Minority interests Adjusted net profit (*) 34,689 36, ,400 Attributable to the Group 34,092 36, ,384 Attributable to Minority interests ,015 Adjusted earnings per share (in euros) - Basic Adjusted earnings per share (in euros) - Diluted (*) The adjusted net profit is calculated before non-monetary items linked with IFRS2 (free shares), before amortization of intangibles linked with acquisitions (customer relationships), before deferred tax liabilities concerning goodwill whose amortization is deductible in some countries, before the net tax coming from the other non-recurring income and expense and the non-monetary impact of changes in puts in other financial income and expense 4.8 Dividends paid and proposed Ipsos policy is to pay single dividend in respect of a given accounting period in the July following the end of the period. The amounts per share paid and proposed are as follows: In respect of Net dividend per share (in euro) 2017 (1) (¹) Total dividend payment of 37.8 million (after elimination of dividends linked to treasury shares as at 31 December 2017) to be proposed to the General Meeting of Shareholders on 4 May The dividend was paid on 4 July 2018.

18 Half-year 2018 consolidated financial statements Ipsos Group Page 18/29 5 Notes to the balance sheet 5.1 Goodwill Goodwill impairment tests At 31 December 2017, on basis of measurements carried out in-house in coherence with accounting principles as reported in notes of the consolidated 2016 financial statement. Ipsos management concluded that the recoverable value of goodwill allocated to each group of cash-generating units exceeded its carrying amount. As of 30 June 2018, following the sensitivity noted in previous years in the Latin America area, additional follow up work was conducted on the basis of comparable transactions and 2017 s previsions updated and on the long-term vision on the basis of a 8 % operational margin (8.5% in this case in 2022 final year). As of June 30, 2018, the work performed in Latin America, as well as in the rest of the Group, did not lead to the identification of any indications of impairment and to the questioning of the conclusions of December 31, Changes as of 30 June 2018 In thousand euros 01/01/2018 Increases Decreases Changes in commitments to buy out minority interests Exchange rates 30/06/2018 Goodwills 1,159, (167) 4,899 1,164, Other intangible assets In thousand euros 01/01/2018 Increases Decreases Exchange rates Changes in scope of consolidation and other movements 30/06/2018 Trademark 1, ,983 Panels on line 26,868 1,594 0 (91) 0 28,371 Panels off line 6, (679) ,057 Customer relationships 68, ,883 Other intangible assets (1) 89,963 12,741 (1,319) 674 (2) 102,058 Gross value 194,243 14,346 (1,998) 762 (2) 207,352 Trademark (670) 0 0 (8) 0 (677) Panels on line (18,788) (1,405) 0 (26) 0 (20,220) Panels off line (5,059) (124) 0 (4,505) Customer relationships (33,417) (2,240) (35,569) Other intangible assets (1) (76,345) (4,304) 1,311 (526) (1) (79,864) Amortisation and depreciation (134,279) (7,948) 1,990 (596) (1) (140,835) Net value 59,964 6,398 (8) 165 (3) 66,517 (1) Capitalization of internal development expenses Until now, the Group only activated its external development costs when the conditions defined in note to the consolidated financial statements of of its accounting principles and methods were met. Following the improvement of its internal monitoring system, Ipsos can capitalize its internal development costs, which consist of the staff costs of its teams working on its platforms and projects, under the same conditions. This decision has resulted in a change in the accounting estimate of the amounts that will now be capitalized. In accordance with IAS8, the prospective method has been applied as from 2018 to account for these impacts. For the first half of 2018, capitalized staff expenses amounted to 9,141k and depreciation relating to this capitalization amounted to 533k.

19 Half-year 2018 consolidated financial statements Ipsos Group Page 19/29 The impacts of this change in the financial statements at June 30, 2018 are as follows: In the balance sheet, other intangible assets increased by 8,608k and deferred tax assets decreased by 2,212k. The impact on net income amounts to 6,396k in the income statement at 30 June At June 30, 2018, in order not to create any distortion in the reading of the operating margin by the recognition of a capitalization product not offset by amortizations during an initial period, the positive effects on income of this first year of asset recognition were reclassified from operating margin to other non-operating income. The same treatment will be applied on 31 December, and over the coming years, until the implementation of capitalization reaches cruising speed. The impact on net income before taxes at 30 June 2018 was 8,608k, broken down as follows: - Net impact on staff costs 2018 if the method had been applied continuously +1,049 k. - The exceptional impact of the application of the prospective method was recorded net in other non-operating income and expenses for a positive amount of 7,559 k. The Ipsos Group has assessed the impact of this change in accounting estimate on subsequent years. Insofar as the Group estimates that the capitalized amount would remain constant over the next few years, the impacts on the income statement for subsequent years would be as follows: In thousands of euros 30/06/ /12/ /12/ /12/ /12/ /12/2022 Staff expenses - excluding stock-based compensation Other non-current income and expenses Operating profit (*) Taxes Net income (*) including amortization of intangible assets 1,049 1, ,559 14,586 11,769 8,657 5,292 1,689 8,608 16,428 12,743 9,058 5,374 1,689 (2,212) (4,222) (3,275) (2,328) (1,381) (434) 6,396 12,206 9,468 6,731 3,993 1,255 And the impacts in subsequent years' balance sheets would be as follows: In thousands of euros 30/06/ /12/ /12/ /12/ /12/ /12/2022 Net value of other intangible assets 8,608 16,428 29,171 38,230 43,604 45,293 Deferred tax assets (2,212) (4,222) (7,497) (9,825) (11,206) (11,640) 5.3 Other non-current financial assets In thousands of euros 01/01/2018 Increases Decreases Changes in scope of consolidation, reclassifications 30/06/2018 and translation differences Loans (1,050) 4,450 (12) (5) 5,483 Other financial assets 19,025 5,510 (922) (286) 23,899 Gross value 20,075 9,960 (935) (282) 29,381 Impairment of other financial assets 1, (109) 1,242 Impairment 1, (109) 1,242 Net value 21,425 9,960 (935) ,623

20 Half-year 2018 consolidated financial statements Ipsos Group Page 20/ Trade receivables In thousand euros 30/06/ /06/ /12/2017 Gross value 513, , ,801 Impairment (6,593) (6,741) (7,141) Net value 506, , , Other current assets In thousand euros 30/06/ /06/ /12/2017 Advances and payments on account 5,582 3,705 3,666 Social security receivables 4,824 4,920 3,598 Tax receivables 39,430 44,314 35,535 Prepaid expenses 19,393 20,987 17,334 Other receivables and other current assets 14,098 13,484 15,669 Total 83,328 87,408 75,802 All other current assets have a maturity of less than one year. 5.6 Equity Share capital As of 30 June 2018, the share capital of Ipsos SA was 11,109, euros including 44,436,235 shares with a par value of 0.25 each. The number of shares making up the share capital and the number of own shares changed as follows during the first semester 2018 : Number of shares (par value 0.25) Shares issued Own shares Shares in issue At 31 December ,436,235 (1,350,841) 43,085,394 Increase of capital (exercise of option) 156,344 61,341 Decrease of capital (exercise of option) (156,344) 61,341 - Transfer (delivery of free share allocation program of April 2015) 415, ,397 Purchase (except liquidity contract) - - Changes under the liquidity contract (10,652) (10,652) At 30 June ,436,235 (884,755) 43,551,480

21 Half-year 2018 consolidated financial statements Ipsos Group Page 21/ Share-based plans Share subscription option plans The Group decided to set up stock option plans for all its senior management. The current terms of plans outstanding at 30 June 2018 are as follows: Grant Date Vesting Date Expiry date Exercis e price Number Number Number Number Number Number Number Number of options of options of options of options of options of options of options of granted by the granted cancelled exercised expired outstanding outstanding grantees Board of Directors during the during during during 30/06/ /01/2018 year the year the year the year 129 1,545, ,936 - (15,680) (59,741) - 639,515 04/09/ /09/ /09/ /09/ /09/ , , (1,600) - 236,670 Sub-total Plan 156 1,969, ,206 - (15,680) (61,341) - 876, Free shares attribution plans Each year since 2006, the Board of Directors set up free share attribution plans for the benefit of French residents and French non residents, who are employees, officers and directors of the Ipsos Group. These shares will vest with the beneficiaries only after a period of two years, provided that the beneficiary is still an employee, officer or director of the Ipsos Group at the end of this period. At the end of the vesting period, the free shares will remain unavailable for French residents for a further two-year period. The free share attribution plans which remain outstanding at 30 June 2018 were set up with the following characteristics: Grant date Type of plan Number of grantees Number of free shares initially attributed Expiry date of the vesting period Number of free shares outstanding 01/01/2018 Number of free shares granted during the year Number of free shares cancelled during the year Number of free shares reclassified during the year Number of free shares vested during the year Number of free shares outstanding 30/06/ /04/ /04/2016 France Rest of the world 65 64,903 28/04/ ,844 (54,844) ,212 28/04/ ,885 (8,332) (360,553) - Sub-Total 2016 Plan , ,729 - (8,332) - (415,397) - 28/04/2017 France/Rest of the world ,878 28/04/ ,290 (10,383) 379,907 Sub-Total 2017 Plan , ,290 - (10,383) ,907 04/05/2018 France/Rest of the world 1, ,398 04/05/ ,398 (544) 393,854 Sub-Total 2018 Plan 1, , ,398 (544) ,854 Total free shares attribution plans 814, ,398 (19,259) - (415,397) 773, Analysis of share-based payment costs The expenses recognized in respect of stock option and free shares plans were calculated as follows: In thousands of euros 30/06/ /06/ /12/2017 IPF 2020 plan of 4 September Free shares attribution plan of 24 April ,312 1,391 Free shares attribution plan of 28 April ,540 2,370 4,711 Free shares attribution plan of 28 April , ,245 Free shares attribution plan of 4 May Sub-Total 4,585 4,747 9,549 Employer contribution in 20% France and UK Total 4,944 5,104 10,094

22 Half-year 2018 consolidated financial statements Ipsos Group Page 22/ Net debt Analysis of borrowings and other financial liabilities by maturity Borrowings, net of cash and cash equivalents, are as follows: In thousand euros Total less than 1 year 30 June December 2017 Maturity between 1 and 5 years more than 5 years Total less than 1 year Maturity between 1 and 5 years more than 5 years Bond issue 176, , , ,106 - Bank borrowings 384,847 20, ,007 74, ,808 20, ,038 72,958 Derivative financial assets Debt linked to finance leases Other financial liabilities Accrued interests on financial liabilities 3,872 3, ,938 2, Bank overdrafts 1,239 1,239 ( ) - 2,158 1, Borrowings and other financial liabilities (a) 567,590 26, ,232 74, ,959 25, ,474 72,958 Derivatives financial assets (b) ,462 1,462 Marketable securities 4,308 4,308 6,495 6,495 Cash 99,172 99, , ,771 Cash and cash equivalents (c) 103, , , , Net debt (a - b - c) 464,026 (77,227) 467,232 74, ,231 (113,201)) 504,474 72, Current and non-current provisions In thousand euros 1 st January 2018 Allowances Reversals of provisions used Reversals of provisions non used Changes in scope of consolidation and other reclassifications Exchange rates 30 June 2018 Provisions for litigation and other risks 5, (273) 0 (25) (423) 4,915 Provisions for other charges Provisions for retirements Total o/w current provisions o/w non-current provisions 10, (374) 0 80 (15) 11,167 26,918 1,243 (197) 12 (238) 0 27,737 43,075 2,198 (844) 12 (183) (438) 43,819 7,189 7,087 8,964 8,986 Provisions for litigation concern primarily commitments relating to legal disputes with employees. Provisions for other charges comprise commitments for rents above the market value or unoccupied premises, as well as tax and social security risks.

23 Half-year 2018 consolidated financial statements Ipsos Group Page 23/ Other current and non-current liabilities in thousand euros 30/06/ /12/2017 < 1 an > 1 an Total < 1 an > 1 an Total Purchase price and earn-out payments (1) 161 3,329 3, ,241 3,395 Buy-out of minority interests (1) ,252 14,975 9,575 13,500 23,075 Advances and progress payments from customers 16,829-16,829 16,134-16,134 Tax and social security liabilities 100, , , ,964 Deferred income (2) 8,645-8,645 8,686-8,686 Other debt and other liabilities 41,300 3,274 44,573 6,079 1,442 7,520 Total 168,541 20, , ,592 18, ,775 (1) See comments in note Acquisition-related commitments. (2) It concerns mainly studies on which invoicing exceeds revenue recognised using the percentage-of-completion method. 6 Cash flow and additional information 6.1 Changes in working capital requirement In thousand euros 30/06/ /06/ /12/2017 Decrease (Increase) in trade receivables 89,690 72,644 (47,933) Increase (Decrease) in trade payables (38,899) (23,527) 17,573 Change in other receivables and payables (34,786) (41,734) (7,411) Change in the working capital requirement 16,004 7,383 (37,771) 6.2 Cash used by investing activities In thousand euros 30/06/ /06/ /12/2017 Acquisitions of intangibles assets (1) (14,346) (4,060) (8,298) Acquisitions of property, plant and equipment (6,074) (3,792) (8,918) Total acquisitions during the period (20,420) (7,853) (17,216) Deferred disbursement 15 3 (302) Payments made on acquisitions of intangible assets and property, plant and equipment (20,406) (7,850) (17,518) (1) The change compared to June 30, 2017 is mainly explained by the capitalization of internal development costs for 8.6 million at June 30, 2018 detailed in note 5.2.

24 Half-year 2018 consolidated financial statements Ipsos Group Page 24/ Off-balance sheet commitments Acquisition-related commitments Commitments to buy out minority interests, deferred payments and earn-out payments that are discounted and recognised as noncurrent liabilities at June 30, 2018 break down as follows : In thousand euros 1year > 1 to 5 years > 5 years Total Deferred payments and earn-out payments Europe, Middle East and Africa America Asia Pacific , ,329 Sub-total Commitments to buy out minority interests Europe, Middle East and Africa 723 2,367 3,090 America 11,885 11,885 Asia Pacific Sub-total ,252 14,975 TOTAL ,252 3,329 18, Other commitments and litigation The Group is currently not involved in any significant litigation as of June 30, Contingent liabilities In the normal course of business, there are risks in certain countries that the government may call into question the Company's tax or labour practices, which may result in a reassessment. The Group is involved in a number of tax inspections and labour claims in a number of countries. Provisions have been set aside for the probable risks identified (see note 5.7 Current and non-current provisions). The financial implications of these tax reassessments are accounted for by setting aside provisions for the amounts notified by the authorities and accepted by Ipsos' management. The reassessments are taken into account on a case-by-case basis based on estimates factoring in the risk that the validity of the measures and proceedings initiated by the Company may not be recognised. Ipsos' management believes that such reassessments in progress are unlikely to have a material impact on the Company's operating profit, financial condition or liquidity position. 6.5 Related-party transactions The related-party transactions are not significant as of June 30, Risk factors There have been no significant developments in the risk factors described in the 2017 reference document in paragraph 4. Risk factors. 6.7 Subsequent events No subsequent event occurred after the closing period.

25 Half-year 2018 consolidated financial statements Ipsos Group Page 25/29 Companies included in the scope of consolidation at 30 June Scope of consolidation The following companies are included in the scope of consolidation: Fully consolidated companies Holding Consolidated companies Legal form % control % interest Country Address Ipsos SA SA France 35, rue du Val de Marne Paris Ipsos Group Gie GIE France 35, rue du Val de Marne Paris Europe Ipsos France SAS France 35, rue du Val de Marne Paris Ipsos Observer SA France 35, rue du Val de Marne Paris Popcorn Media SA France 35, rue du Val de Marne Paris GIE IPSOS GIE France 35, rue du Val de Marne Paris Ipsos Ocean Indien SARL France Ipsos Antilles SAS France Espaces TV SA France Ipsos MORI UK Ltd Ltd Price Search Ltd Ipsos Interactive Services Ltd Ltd M&ORI Limited Ltd MORI Ltd Ltd Ipsos EMEA Holding Limited Ltd Ipsos Pan Africa Holdings Limited Ltd Synovate Healthcare Limited Ltd Ipsos Retail Performance Ltd Ltd United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Ipsos Limited Ltd Ireland 158, rue Juliette Dodu Saint Denis - La Réunion Les Hauts de Californie, Morne Pavillon, Le Lamentin- Martinique 30, rue d'orléans, Neuilly sur Seine 3 Thomas More Square, London E1W 1YW 3 Thomas More Square, London E1W 1YW 3 Thomas More Square, London E1W 1YW 3 Thomas More Square, London E1W 1YW 3 Thomas More Square, London E1W 1YW 3 Thomas More Square, London E1W 1YW 3 Thomas More Square, London E1W 1YW 3 Thomas More Square, London E1W 1YW Beech House, Woodlands Business Park, Milton Keynes - MK14 6ES Block 3, Blackrock Business Park, Blackrock, Co Dublin Ipsos GmbH Gmbh Germany Sachsenstrasse 6, Hamburg IPSOS Operations GmbH Gmbh Germany Sachsenstrasse 6, Hamburg Ipsos Loyalty Gmbh Germany Sachsenstrasse 6, Hamburg Trend.test GmbH Gmbh Germany Kolonnenstrasse 26, 2,Hof,1,OG Berlin Ipsos Marktforschung GmbH Gmbh Germany Hahnstraße 40, Frankfurt Ipsos Bahnreisenforschung GmbH Gmbh Germany Elektrastraße 6, München Ipsos Srl SRL Italy Via Tolmezzo 15, Milano Ipsos Iberia, SA SAU Spain IPSOS UNDERSTANDING UNLTD.,SAU SAU Spain Avenida de llano castellano, 13, 3a planta, Madrid Avenida de llano castellano, 13, 3a planta, Madrid Ipsos Holding Belgium SA Belgium Paepsemlaan 11, 1070 Anderlecht Ipsos NV (Belgium) SA Belgium Grote Steenweg , Berchem IPSOS HUNGARY ZRT Zrt Hungary Pap Károly u. 4-6, Budapest, H-1139 Synovate Investigação de Mercado, Lda Lda Portugal Rua Ramalho Ortigão No. 8-2 Dto., Lisboa Ipsos Sp. z o. o. sp z.o.o Poland ul. Domaniewska 34A, , Warsaw Ipsos AB AB Sweden S:t Göransgatan 63, Box 12236, Stockholm