Publicis Groupe: Full Year 2020 Results

PARIS–(BUSINESS WIRE)–Regulatory Information:

Publicis Groupe (Paris:PUB):

FY 2020 Outcomes

(€m)		FY 2020		2020 vs 2019
Internet income		9,712		-0.9%
Natural development				-6.3%
EBITDA		2,158		-3.9%
Working margin		1,558		-6.1%
Working margin fee		16.0%		-90bps
Headline Groupe web earnings		1,034		-13.0%
Headline diluted EPS (euro)		4.27		-14.9%
Free Money Move earlier than change in working capital		1,190		-5.0%

This autumn 2020 Income

Internet income		€2,595 M
Reported development		-9.6%
Natural development		-3.9%

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1 To be proposed to the shareholders on the AGM of Could, 26 2021

Arthur Sadoun, Chairman and CEO of Publicis Groupe:

“Within the powerful context of 2020, Publicis posted stable efficiency due to our transformation.

Our long-term funding in knowledge and know-how, our nation mannequin, and our platform Marcel, have enabled us to remain robust by containing our income decline and sustaining best-in-class financials.

We outperformed the trade common on this 12 months of outstanding crises by delivering a broadcast development of -0.9% in 2020 and natural development at -6.3% for the 12 months, with a This autumn forward of market and our expectations at -3.9%.

That is the results of our potential to seize the shift in our purchasers’ funding in direction of digital channels, e-commerce and direct-to-consumer, which intensified all year long.

It’s notably seen within the U.S. the place Epsilon delivered development of 5.5% in This autumn, enabling our most essential nation to be barely constructive. This was additionally the case for Publicis Sapient.

We gained market share by rising with our prime 200 purchasers by 1.8%, and recorded a continued new enterprise momentum with wins like Kraft-Heinz, Reckitt Benckiser, Pfizer, Visa, L’Oréal in China, TikTok and Sephora.

Final however not least, we continued to publish the most effective monetary ratios of the trade with an working margin fee of 16% and a free money circulate of near 1.2 billion Euros whereas considerably lowering our web debt at round 800 million euros at year-end.

At present, our stable outcomes imply we’re capable of suggest a dividend of two€, barely beneath our pre-pandemic stage, comparable to a payout of 46.8%.

It is very important be aware the sustainability of this efficiency, which was achieved with just about no profit from authorities schemes, together with in France the place we determined to not reap the benefits of any state support.

After we noticed in the beginning of the disaster how devastating the pandemic could possibly be, we rapidly acted to redefine our plans. This included a voluntary pay lower by round 6000 of our managers, and a brand new set of targets for the remainder of the 12 months. Due to the collective and extraordinary efficiency of our folks in these tough occasions, we have now been capable of publish outcomes which are above trade averages, permitting us to repay the wage sacrifice and put aside a better bonus pool to pretty reward and acknowledge our groups.

I’d wish to thank everybody within the group for his or her unbelievable efforts and our purchasers for his or her confidence and partnership.

It’s clear now that the disaster didn’t finish with 2020. The world will proceed to be marked by the social and the financial results of the pandemic for a while. So we’re going into this new 12 months with a renewed preventing spirit, able to double down on our efforts to maintain our folks protected, make our purchasers win in a platform world and proceed to enhance our effectivity.

Our transformation helped us stand robust within the storm of the previous 12 months. We’re clear-sighted in regards to the challenges that lie forward, however due to our belongings, our mannequin, our folks, and the belief of our purchasers, we’re assured that we’ll emerge from this disaster as a stronger firm.“

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Publicis Groupe’s Supervisory Board met on February 2, 2021, below the chairmanship of Maurice Lévy, to look at the 2020 annual accounts offered by Arthur Sadoun, CEO and Chairman of the Administration Board.

KEY FIGURES

EUR million, besides per-share knowledge and percentages		FY 2020		FY 2019		2020 vs 2019
Information from the Revenue Assertion and Money circulate Assertion
Internet income		9,712		9,800		-0.9%
Cross-through income		1,076		1,201		-10.4%
Income		10,788		11,001		-1.9%
EBITDA		2,158		2,245		-3.9%
% of Internet income		22.2%		22.9%		-70 bps
Working margin excluding transaction prices (1)		1,558		1,699		-8.3%
% of Internet income		16.0%		17.3%		-130 bps
Working margin		1,558		1,659		-6.1%
% of Internet income		16.0%		16.9%		-90 bps
Working earnings		983		1,267		-22.4%
Internet earnings attributable to the Groupe		576		841		-31.5%
Earnings Per Share (EPS)		2.40		3.59		-33.1%
Headline diluted EPS (2)		4.27		5.02		-14.9%
Dividend per share (3)		2.00		1.15		+73.9%
Free Money Move earlier than change in working capital necessities		1,190		1,253		-5.0%
Information from the Steadiness Sheet		Dec. 31, 2020		Dec. 31, 2019
Whole belongings		30,161		32,659		-7.6%
Groupe share of Shareholders’ fairness		7,182		7,401		-2.9%
Internet debt (web money)		833		2,713		-69.3%

(1)		Transaction prices associated to the acquisition of Epsilon totaled 40 million euros in 2019
(2)		Internet earnings attributable to the Groupe, after elimination of impairment expenses, amortization of intangibles arising on acquisitions, the primary capital good points (or losses) on disposals, change within the honest worth of economic belongings, the prices of the anticipated unwinding of cross-currency swaps (in 2020), the revaluation of earn-out prices and Epsilon transaction prices (in 2019), divided by the typical variety of shares on a diluted foundation
(3)		To be proposed to the shareholders on the AGM of Could 26, 2021

NET REVENUE IN FY 2020

Publicis Groupe’s web income for the complete 12 months 2020 was 9,712 million euros, down by 0.9% in comparison with 9,800 million euros in 2019. Change fee variations over the interval have a destructive impression of 219 million euros. Acquisitions (web of disposals) have a contribution of 729 million euros on web income, most of it being associated to the acquisition of Epsilon.

2020 was general impacted by the consequences of the Covid-19 pandemic that unfold the world over from March. Due to its transformation, the Groupe posted a resilient efficiency with natural development of -6.3% that was notably supported by the actions within the U.S (natural development of -2.0%). The Covid-19 disaster impression began on the finish of the primary quarter, and resulted in a big drop in natural development in Q2 (-13.0%) following the containment measures that have been applied by governments in several geographies. Natural development got here at -5.6% and -3.9% respectively in Q3 and This autumn, because the exercise continued to be impacted by the disaster however confirmed enchancment. All year long, the Groupe’s long-term funding in knowledge and know-how, its country-model group and its platform Marcel have enabled it to mitigate the income decline linked to the disaster, by capturing the shift in purchasers’ funding in direction of digital channels, e-commerce and direct-to-consumer.

Breakdown of FY 2020 web income by area

EUR		Internet income				Reported		Natural
million		FY 2020		FY 2019		development		development
Europe		2,278		2,630		-13.4%		-12.7%
North America		5,997		5,516		+8.7%		-2.4%
Asia Pacific		932		1,006		-7.4%		-6.7%
Latin America		230		326		-29.4%		-13.9%
Center East & Africa		275		322		-14.6%		-11.7%
Whole		9,712		9,800		-0.9%		-6.3%

Internet income in Europe was -13.4% on a reported foundation and -12.7% on an natural foundation. Early within the 12 months, all important nations in Europe took drastic measures to mitigate the impression of the Covid-19 disaster, with successive lockdowns or curfews that spanned from Q2 to This autumn. On this context, the UK posted natural development of -12.4%. France, at -19.7% natural, was notably impacted by its particular outside media actions and the Drugstore that have been shut down throughout a part of the 12 months. Excluding this impression, natural development was -12.5% in France and -10.8% in Europe in 2020. Internet income in Germany was down 7.7% organically. Artistic and Media efficiency different relying on the nations, however general have been resilient and posted a greater efficiency than the Groupe within the area, whereas Publicis Sapient was down and Well being actions grew within the 12 months.

In North America, reported development was +8.7% and natural development was -2.4%. The U.S. posted a resilient efficiency with a decline in its natural development restricted to 2.0%. After a constructive Q1, the U.S. demonstrated resilience in Q2 and Q3 within the disaster, to lastly finish This autumn barely constructive. Epsilon 2.0 has been contributing to U.S. natural development since Q3 and grew 5.5% in This autumn. Publicis Sapient natural development within the U.S. was destructive within the 12 months as some tasks have been placed on maintain throughout the disaster however turned constructive in This autumn. Well being had a very robust 12 months, with a double-digit development. Canada natural development was down 10.9% in 2020.

Asia Pacific was down by 7.4% on a reported foundation and 6.7% on an natural foundation. China, the primary nation impacted by Covid-19, recorded natural development of -8.1% in 2020. Progress there sequentially improved in This autumn at -4.2%, notably due to a barely constructive development in Media exercise.

In Latin America, the exercise was considerably impacted by the well being state of affairs in Brazil and Mexico, which resulted in natural development of -13.9% in 2020 for the area. As well as, the evolution of forex alternate charges had a robust destructive impression within the area. Consequently, the reported development within the area was -29.4%.

Center-East and Africa was down by 14.6% on a reported foundation (-11.7% on an natural foundation), principally pushed by the well being state of affairs in some nations like Israel and South Africa, and by some tasks coming to an finish within the United Arab Emirates for Publicis Sapient.

NET REVENUE IN This autumn 2020

Publicis Groupe’s web income in This autumn 2020 was 2,595 million euros in comparison with 2,871 million euros in This autumn 2019, down by 9.6%. Change fee variations had a 156 million euros destructive impression. The acquisitions (web of disposals) have been a destructive 13 million impression to web income in This autumn 2020.

Natural development was -3.9% in This autumn 2020.

With a +0.5% natural development, the exercise was notably resilient within the U.S., the place the Groupe’s digital media actions, Epsilon, Publicis Sapient and Well being follow all recorded enhance in web income. Artistic and Media continued to be impacted by the disaster however the decline was partly mitigated by an increase in web income for digital media and content material manufacturing companies.

In Europe, natural development was -9.1% because the area continued to be impacted by the varied restrictive measures taken by governments to face Covid-19, equivalent to lockdowns or curfews in all the Groupe’s important nations. The UK was down 11.0% organically, as was Germany (-10.9%). The state of affairs in France improved sequentially, with natural development of -7.2%, pushed by a constructive media efficiency in This autumn.

In Asia Pacific, natural development remained destructive in This autumn at -8.6%, however improved sequentially in comparison with Q3, pushed by China. China posted a 4.2% decline in natural in This autumn, bettering sequentially and recording an encouraging sequence of wins.

Latin America declined by 29.0% on a reported foundation, principally because of destructive alternate fee variations and a continued destructive efficiency in Brazil and Mexico that drove a ten.8% decline in natural. Center-East and Africa declined 12.1% on an natural foundation (-17.9% reported), notably because of some tasks that got here to an finish in This autumn 2020 at Publicis Sapient within the United Arab Emirates.

Breakdown of This autumn 2020 Internet income by area

EUR		Internet income				Reported		Natural
million		This autumn 2020		This autumn 2019		development		development
Europe		643		728		-11.7%		-9.1%
North America		1,530		1,639		-6.7%		+0.2%
Asia Pacific		268		302		-11.3%		-8.6%
Latin America		76		107		-29.0%		-10.8%
Center East & Africa		78		95		-17.9%		-12.1%
Whole		2,595		2,871		-9.6%		-3.9%

ANALYSIS OF FY 2020 KEY FIGURES

Revenue Assertion

EBITDA amounted to 2,158 million euros in 2020, in comparison with 2,245 million euros in 2019, down by 3.9%. The impression of the fee discount plan introduced in April was 467 million euros in 2020, on a comparable foundation and excluding Epsilon acquisition prices. EBITDA is 22.2% as a proportion of web income (in comparison with 22.9% in 2019).

• Personnel prices totaled 6,242 million euros in 2020, up by 2.8% from 6,073 million euros in 2019. This evolution displays the consolidation of Epsilon since July 2019 that continued to have an effect within the first half of 2020, that was partly compensated by the fee discount plan launched by the Groupe. As a proportion of web income, the personnel bills represented 64.3% in 2020, in comparison with 62.0% in 2019. Mounted personnel prices have been 5,457 million euros represented 56.2% of web income versus 54.6% in 2019. Regardless of the consolidation of Epsilon throughout the first half, fastened personnel prices solely elevated by 104 million euros, due to the actions taken by the Groupe, equivalent to a hiring freeze, pause in inside promotions or shorter work weeks. Furthermore, the Groupe determined to restrict the usage of freelancers. Consequently, the price of freelancers declined by 70 million euros in 2020, representing 278 million euros. Restructuring prices reached 175 million euros (116 million euros in 2019), reflecting further expenses associated to the fee discount plan.

• Different working bills (excluding depreciation & amortization) amounted to 2,388 million euros, in comparison with 2,683 million euros in 2019. This represents 24.6% of web income in comparison with 27.4% in 2019, indicating that the fee discount measures greater than offset the destructive impression of Epsilon price construction on this ratio. The Groupe was capable of make vital financial savings on different working bills in 2020, due to the actions taken as a part of the fee discount plan, but in addition due to some bills that have been drastically lowered throughout the lockdowns. This was notably the case with journey, recruitment and seminar associated bills.

Depreciation and amortization cost was 600 million euros in 2020, up by +2.4% in comparison with 2019. The rise is basically as a result of consolidation of Epsilon over the interval.

The working margin amounted to 1 558 million euros, down by 6.1% in comparison with 2019. This represents a margin fee of 16.0%, down by 90 foundation factors from 16.9% in 2019. When in comparison with the 2019 margin excluding Epsilon acquisition prices, the margin declined by 130 foundation factors. This lower is as a result of decline in natural development associated to the impression of the Covid-19 disaster, partially offset by a 5.4% discount within the 2019 price base at fixed alternate charges and perimeter.

Working margin charges by main geographic areas mirrored the varied challenges confronted by the completely different areas in 2020, within the context of the worldwide pandemic. It was 10.2% in Europe, 18.6% in North America, 18.2% in Asia-Pacific, 10.4% in Latin America and 5.8% within the Africa / Center East area.

Amortization of intangibles arising from acquisitions totaled 339 million euro in 2020, up from 204 million euro in 2019. This enhance is as a result of full-year impression of the amortization of Epsilon intangibles and of tradenames arising from acquisitions, each having began to be amortized in July 2019. Impairment losses amounted to 241 million euros, of which 226 million euros associated to the true property consolidation plan “All in One”, which results in a discount within the variety of websites, whereas permitting higher collaboration between the groups. In 2019, impairment losses have been 209 million euros (of which 127 million euros associated to actual property plan “All in One”). As well as, web non-current earnings is constructive at 5 million euros 2020, in comparison with an earnings of 21 million euros in 2019.

Working earnings totaled 983 million euro in 2020, after 1,267 million euro in 2019.

The monetary outcome, comprising the price of web monetary debt and different monetary expenses and earnings, is an expense of 198 million euros in 2020 in comparison with an expense of 91 million euros final 12 months. The web expense on web monetary debt was 103 million euros in 2020, together with a 143 million euros curiosity expense on gross debt. Final 12 months, it was a cost of 25 million euros. Different monetary earnings and bills have been a cost of 95 million euros in 2020, notably composed by 77 million euros curiosity on lease liabilities, and a 16 million euros cost associated to an anticipated unwinding of cross forex swaps. Different monetary earnings and bills have been a cost of 66 million euros in 2019, together with 70 million euros of curiosity on lease obligations.

The revaluation of earn-out funds amounted to a lack of 17 million euros, in comparison with a cost of twenty-two million at end-2019.

The tax cost is 196 million euros, comparable to an efficient tax fee of 24.7% in 2020, in comparison with 305 million euros in 2019, comparable to an efficient tax fee of 25.0% in 2019.

The share within the revenue of associates is a lack of 1 million euros, in comparison with a lack of 5 million euros in 2019. Minority pursuits have been an earnings of 5 million euros in Groupe leads to 2020 in comparison with a lack of 3 million within the earlier 12 months.

Total, web earnings attributable to the Groupe was 576 million euros at December 31, 2020, in comparison with 841 million euro at December 31, 2019.

Free Money Move

EUR million		FY 2020		FY 2019
EBITDA		2,158		2,245
Monetary curiosity paid (web)		(113)		11
Reimbursement of lease liabilities and associated pursuits		(461)		(480)
Tax paid		(293)		(349)
Different		54		51
Money Move from operations earlier than change in WCR		1,345		1,478
Investments in fastened belongings (web)		(155)		(225)
Free cash-flow earlier than adjustments in WCR		1,190		1,253

The Groupe’s free money circulate, earlier than change in working capital necessities, is down by 5.0% at 1,190 million euros in comparison with 2019. Monetary curiosity paid principally embrace pursuits on the acquisition debt of Epsilon. Tax paid amounted to 293 million euros, down in comparison with 349 million euros in 2019. The lower in web investments in fastened belongings amounted to 70 million euros. The Groupe was very selective relating to its funding coverage, favouring IT spending particularly to help work at home initiatives which were applied in 2020.

Internet debt

Internet monetary debt amounted to 833 million euros as of December 31, 2020 in comparison with 2,713 million euros as of December 31, 2019. The Groupe’s common web debt in 2020 amounted to three,286 million euros in comparison with 2,375 million euros in 2019. The rise in common web debt displays the financing linked to the acquisition of Epsilon, for 4.5 billion {dollars}, as of July, 1^st 2019.

CHANGES IN DIRECTOIRE

On November 25 2020, Publicis Groupe introduced the appointment of Michel-Alain Proch as Groupe’s Chief Monetary Officier, member of the Directoire, changing Jean-Michel Etienne.

Michel-Alain Proch joined the Groupe on January 18 2021, and can take over the complete operational capabilities of the Chief Monetary Officer position, after the closing and presentation of the 2020 monetary outcomes on February 3.

Jean-Michel Etienne will stay with the Groupe till summer season 2021 as Particular Advisor to the Chairman and CEO of Publicis Groupe, and can oversee central companies and Re:Sources particularly.

Michel-Alain Proch has 25 years of expertise in finance, technique, integration and transformation, acquired inside main know-how teams. He was appointed Chief Monetary Officer of Ingenico in February 2019 till the corporate was acquired by Worldline in November 2020. Since then, he has been advising its Chairman & CEO on the combination course of. Beforehand, he was SEVP & Group Chief Digital Officer at Atos in 2018 after having led the group’s operations in North America from 2015 to 2017. As EVP and Group Chief Monetary Officer of Atos from 2007 to 2015, he led a number of main M&A operations and efficiently co-led the IPO of Worldline. He was Board Member of Worldline till 2016. He had beforehand held senior govt roles at Hermès in France and the United-States for 8 years. He began his profession as a marketing consultant at Deloitte & Touche in France and within the UK.

ACQUISITIONS AND DISPOSALS

There have been no vital transaction on the interval.

OUTLOOK

The transformation of the Groupe helped to face robust within the storm of 2020. Wanting forward, it has additionally positioned the Groupe heading in the right direction to assist its purchasers win in a platform world and subsequently be performer within the trade.

However the disaster didn’t finish with 2020, and the uncertainty brought on by the virus will proceed to dominate each day lives.

The present context prevents the Groupe from giving a full 12 months natural steering for 2021. The Groupe anticipates that Q1 can be destructive because it faces an unfavorable comparable, and development ought to return in Q2 supported by a positive base.

On the subject of margin, the Groupe expects its working margin fee to enhance by as much as 50 foundation factors in 2021, consolidating additional the achievement of 2020. The Groupe’s ongoing price self-discipline and nation mannequin will present the mandatory flexibility to adapt to the evolution of the state of affairs, as noticed in 2020, and make investments accordingly in its expertise.

Free money circulate earlier than change in working capital must be round €1.2 bn in 2021, contributing to the Groupe’s deleveraging plans.

The Groupe will present replace as the extent of visibility on the evolution on the well being state of affairs will increase in July.

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NEW BUSINESS

EUROPE

Longchamp (Media), Intersnack (Media), E.ON (Digital & Media), Disney (Media), Imaginative and prescient Categorical (Artistic), McDonald’s (Expertise), Biotherm (Artistic), Sephora (CRM), Helmholtz-Gemeinschaft (Model), Kingfisher France – Castorama (Artistic), Ascensia (Expertise), FCA (Artistic), Société Générale (CRM), OPPO Cell Telecommunication (Artistic), COS (Digital), TOUS (Expertise), Swissbankers (Artistic), RATP (Expertise), Daimler (Expertise), Deutsche Submit (DHL) (Expertise), Novartis Worldwide (Expertise), Greystar (Digital), Slimming World (Digital), Expedia (Digital), Premier Inn (Artistic), Tesco (Artistic), ING (Artistic, Media, Manufacturing, Information), Mugler Parfums (Artistic), BT (Artistic), Française des Jeux (Media & Social Media), Roche (Well being & Information), Lindt (Media), Peugeot Motocycles (Artistic), eOne (Media), Loacker (Media), Jim Beam (Artistic), Marriot (Artistic), Disney House (Artistic), Nestlé Well being Science (Well being), NovoNordisk (Well being), Système U (Information), Castorama (Information), Beam Suntory (Artistic), Belambra (Artistic), CSIAM (Artistic), Alcon (Media), NH Resort (Media), Renault (Information), Mercedes Vans (Information), Wendy’s (Media), uSwitch (Media), Kellogg’s (Digital), Calzedonia (Media), Dr. Wolff (Media), Alpen (Artistic), Samsung (Information), SNCF (Artistic & Information), Birds Eye (Media), TUI (Artistic), Avast (Artistic & Media), WBA (Artistic & Information), Harry’s (Artistic), DHL (Well being, Expertise, Media), Pandora (Expertise)

NORTH AMERICA

Sephora (Media), Financial institution of America (Media, Artistic), Tailor-made Manufacturers (Media), Reckitt Benckiser (Media), U.S. Mobile (Media, Artistic), H&R Block (Digital Media, Digital Artistic and Social), Aldi (Media), AFLAC (Digital), Whirlpool (Media & Expertise), Bass Professional Outlets (Media), Audi of America (Media), Pharma Vite – Nature Made (Artistic), New York Life (Media, Digital Media AOR), Edgewell (Media), Abbvie (Artistic technique), Lowe’s (Media), FCA (Digital), Blue Apron (Media), Ste Michelle Wine Estates (Artistic), T-Cell (Expertise), Academy Sports activities and Outdoor (Expertise), Edward Jones (Expertise), Well being Sources and Providers Administration (HRSA) (Expertise), Kellogg Firm (Expertise), Marriott (Expertise), Mercedes-Benz USA (Expertise), MGM Resorts (Expertise), Nationwide Most cancers Institute (NCI) (Expertise), Nissan Motor Firm (Expertise), Polaris (Expertise), Verizon Wi-fi Digital (Expertise), WL Gore (Expertise), AbbVie (Well being), Roche (Well being & Information), Allergan (Well being), Heineken Canada (Artistic), Cogeco (Artistic), Mondelez (Artistic), Citi (Artistic), 4 Seasons (Artistic), FCA (Digital), Eli Lilly (Artistic), Church & Dwight (Artistic), Jim Beam (Artistic), Cumberland Packing (Artistic), Heart for Web Safety (Artistic & Digital), MD Anderson (Information), Fb (Artistic), P&G (Digital), CDC (Media), Mizkan Group (Media), H&R Block (Media), Lowe’s (Media), Leesa (Media), Solar Basket (Media), Division of Jobs, Precincts and Areas (Expertise), Nationwide Institute of Diabetes and Digestive and Kidney Illnesses (Expertise), U.S. Client Product Security Fee (Expertise), MDC Basic Providers Holding Firm LLC (Expertise), Polestar Efficiency AB (Expertise), Bridgestone Americas (Expertise), Whole Wine & Extra (Expertise), Shiseido Americas (Expertise), Vanguard (Media), Patron (Digital), Church & Dwight (Artistic), Jim Beam (Artistic), Hulu (Media), Walmart (Media), Froneri (Media), goPuff (Media), JM Smuckers (Artistic), Fiat Chrysler Cars (Expertise), Altria Group (Expertise), Loblaw Digital (Expertise), Philip Morris Worldwide (Expertise), The Depository Belief & Clearing Corp (Expertise), Marriott Worldwide (Expertise), Unilever (Expertise), Spirit Airways (Expertise), Comcast Company (Expertise), UBS Asset Administration (Expertise), Hyundai Auto Canada Corp. (Expertise), BT Pension Scheme (Expertise), Carnival (Expertise)

ASIA PACIFIC/MEA

FCA (Artistic, Media), McDonald’s (Media, Artistic, Digital, Expertise), Foxtel (Artistic), Miral Asset Administration (Expertise), Samsung.com (Artistic), Sanofi (Artistic), Nestlé (Artistic, Expertise), Majid Al Futtaim Holding (Expertise), Samsung (Artistic), Hero (Media), Volvo (Media), Prudential Holdings (Expertise), MasterCard Worldwide (Expertise), SA Tourism (Artistic), Disney China & Hong Kong (Media), Louis Vuitton (Artistic), ChungHwa Telecom (Artistic), Goodman Fielder (Media), Novartis (Well being), CBL (Heineken, Tiger and ABC Cambodia) (Artistic), Novo Nordisk (Well being), QLD Well being and Wellbeing (Artistic), Hong Kong Disneyland Resort (Media), PharmEasy (Media), Tencent (Media), Planet Sports activities (Media), Hyundai (Media), Citi (Media), Goody (Media), Tawal (Media), MDC Basic Providers Holding Firm LLC – Mubadala (Expertise), Nestlé Content material Studio (Artistic & Digital), Westpac (Media), P&G (Digital), Zee (Artistic), Buick (Artistic), Porsche (Expertise), Meridian Power (Media), Nescafe 1+2 (Artistic), Clarins (Media), Eurokars (Artistic & Media), The Nice Barrier Reef Basis (Artistic), Bharti Axa Life Insurance coverage (Artistic, Digital, Media), Miele (Media & Information), HBF (Artistic), L’Oréal (Media)

LATAM

DIRECTV (Media & Efficiency AOR), Coca-Cola (Artistic), Electrolux (Artistic), Mondelez (Media & Artistic), GSK Client Well being (Artistic), P&G (Media, Artistic, Digital, Expertise), CCR (Artistic), Ambev (Artistic), Claro (Digital), Enel (Artistic), Toyota (Artistic), L’Oréal (Digital Artistic), Bradesco (Artistic & Digital), Nestlé (Media & Artistic), Nutresa (CRM), Diageo (Artistic Digital), Sanofi (Artistic), ABI (Media), Corteva Agro (Media), Calsa (Media), Embol (Media), Electrolux (Media), TCCC (Media), Ezcorp (Media), Starbucks (Media), Avon (Media), Citi (Media), MSD Sharp & Dohme (Media), Pacific Heart (Media), Story (Media), Bellcorp (Digital)

GLOBAL

Jollibee (Artistic), Enel (Artistic), Loblaw Digital (Expertise), Unilever (Expertise), Tesco (Expertise), Marriott Worldwide (Expertise), Basic Pension and Social Safety Authority (Expertise), Farah Experiences (Expertise), Nissan Worldwide (Expertise), Royal Canin (Expertise), Worldpay (Expertise), Philip Morris Merchandise OC Division (Expertise), Carrefour (Expertise), Bang & Olufsen (Expertise), FWD Group Administration Holdings (Expertise), GSK (Manufacturing), Air France (Media), Tik Tok (Media), Kraft Heinz (Media), P&G (Media), Merck (Non-US) (Media), Combe (Media), Pigeon (Media), Novartis (Media), Fiat (Expertise), Nestlé (Expertise), Pandora (Expertise), Heineken (Artistic, Information & Expertise), Arrow Electronics (Media), Pierre Fabre (Media), BSH (Media), Mondelez (Manufacturing), Visa (Manufacturing)

Disclaimer

Sure data contained on this doc, apart from historic data, might represent forward-looking statements or unaudited monetary forecasts. These forward-looking statements and forecasts are topic to dangers and uncertainties that would trigger precise outcomes to vary materially from these projected. These forward-looking statements and forecasts are offered on the date of this doc and, apart from as required by relevant legislation, Publicis Groupe doesn’t assume any obligation to replace them to mirror new data or occasions or for every other motive. Publicis Groupe urges you to rigorously contemplate the chance elements which will have an effect on its enterprise, as set out within the Common Registration Doc filed with the French Autorité des Marchés Financiers (AMF) and which is obtainable on the web site of Publicis Groupe (www.publicisgroupe.com), together with an unfavorable financial local weather, a extremely aggressive trade, dangers related to the confidentiality of non-public knowledge, the Groupe’s enterprise dependence on its administration and workers, dangers related to mergers and acquisitions, dangers of IT system failures and cybercrime, the likelihood that our purchasers might search to terminate their contracts with us on quick discover, dangers related to the reorganization of the Groupe, dangers of litigation, governmental, authorized and arbitration proceedings, dangers related to the Groupe’s monetary score and publicity to liquidity dangers.

About Publicis Groupe – The Energy of One

Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is a worldwide chief in communication. The Groupe is positioned at each step of the worth chain, from consulting to execution, combining advertising transformation and digital enterprise transformation. Publicis Groupe is a privileged associate in its purchasers’ transformation to boost personalization at scale. The Groupe depends on ten experience concentrated inside 4 important actions: Communication, Media, Information and Expertise. Via a unified and fluid group, its purchasers have a facilitated entry to all its experience in each market. Current in over 100 nations, Publicis Groupe employs round 80,000 professionals.

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Appendices

Internet income: natural development calculation

(million euro)	Q1	Q2	Q3	This autumn	12 months		Affect of forex at finish December 2020 (million euro)
2019 web income	2,118	2,234	2,577	2,871	9,800		GBP (2)	(12)
Forex impression (2)	33	(1)	(95)	(156)	(219)		USD (2)	(94)
2019 web income at 2020 alternate charges (a)	2,151	2,233	2,482	2,715	9,581		Others	(112)
2020 web income earlier than acquisition impression (1) (b)	2,088	1,943	2,344	2,608	8,983		Whole	(219)
Internet income from acquisitions (1)	393	350	(1)	(13)	729
2020 web income (1)	2,481	2,293	2,343	2,595	9,712
Natural development (b/a)	-2.9%	-13.0%	-5.6%	-3.9%	-6.3%

(1)		Acquisitions (Digitas AffinityID, Smooth Computing, Rauxa, E2 Media, Epsilon, RDL, SearchForce, McCready Bale Media, Sapient i.7, Third Horizon), web of disposals.
(2)		EUR = 1.140 USD on common in 2020 vs. USD 1.119 on common in 2019
		EUR = 0.889 GBP on common in 2020 vs. GBP 0.877 on common in 2019

Definitions

Internet income or Income much less pass-through prices: Cross-through prices primarily concern manufacturing and media actions, in addition to varied bills incumbent on purchasers. This stuff that may be re-billed to purchasers don’t come inside the scope of evaluation of operations, web income is a extra related indicator to measure the operational efficiency of the Groupe’s actions.

Natural development: Change in web income excluding the impression of acquisitions, disposals and currencies.

EBITDA (Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization): Working margin earlier than depreciation & amortization.

Working margin: Income after personnel prices, different working bills (excl. non-current earnings and expense) and depreciation (excl. amortization of intangibles arising on acquisitions).

Working margin fee: Working margin as a proportion of web income.

Headline Group Internet Revenue: Internet earnings attributable to the Groupe, after elimination of impairment expenses / actual property transformation bills, amortization of intangibles arising on acquisitions, the primary capital good points (or losses) on disposals, change within the honest worth of economic belongings, the impression of US tax reform, the revaluation of earn-out prices and Epsilon transaction prices.

EPS (Earnings per share): Group web earnings divided by common variety of shares, not diluted.

EPS, diluted (Earnings per share, diluted): Group web earnings divided by common variety of shares, diluted.

Headline EPS, diluted (Headline Earnings per share, diluted): Headline group web earnings, divided by common variety of shares, diluted.

Capex: Internet acquisitions of tangible and intangible belongings, excluding monetary investments and different monetary belongings.

Free Money Move earlier than adjustments in working capital necessities: Internet money circulate from working actions much less pursuits paid & obtained, compensation of lease liabilities & associated pursuits and earlier than adjustments in WCR linked to working actions

Free Money Move: Internet money circulate from working actions much less pursuits paid & obtained, compensation of lease liabilities & associated pursuits

Internet Debt (or monetary web debt): Sum of lengthy and quick monetary debt and related derivatives, web of treasury and money equivalents.

Common web debt: Common of month-to-month web debt at finish of month.

Dividend pay-out: Dividend per share / Headline diluted EPS.

Consolidated earnings assertion

(in thousands and thousands of euros)			2020		2019
Internet income1			9,712		9,800
Cross-through income			1,076		1,201
Income			10,788		11,001
Personnel prices Different working prices			(6,242) (2,388)		(6,073) (2,683)
Working margin earlier than depreciation and amortization			2,158		2,245
Depreciation and amortization expense (excluding acquisition-related intangible belongings)			(600)		(586)
Working margin			1,558		1,659
Amortization of intangibles from acquisitions			(339)		(204)
Impairment			(241)		(209)
Non-current earnings and bills			5		21
Working earnings			983		1,267
Monetary expense Monetary earnings Value of web monetary debt Revaluation of earn-out funds on acquisitions Different monetary earnings and bills			(185) 66 (119) (17) (79)		(137) 112 (25) (22) (66)
Pre-tax earnings of consolidated corporations			768		1,154
Revenue taxes			(196)		(305)
Internet earnings of consolidated corporations			572		849
Share of revenue of associates			(1)		(5)
Internet earnings			571		844
Of which:    – Internet earnings attributable to non-controlling pursuits			(5)		3
Internet earnings attributable to fairness holders of the dad or mum firm			576		841

Per share knowledge (in euros) – Internet earnings attributable to fairness holders of the dad or mum firm
Variety of shares		239 838 347		234 293 034
Earnings per share		2,40		3,59
Variety of diluted shares		241 926 553		236 608 597
Diluted earnings per share		2,38		3,55

______________________

1 Internet income: Income much less pass-through prices. These prices are primarily manufacturing & media prices and out-of-pocket bills. As this stuff that may be handed on to purchasers are usually not included within the scope of research of transactions, the online income indicator is essentially the most acceptable for measuring the Group’s operational efficiency.

Consolidated assertion of complete earnings

(in thousands and thousands of euros)		2020		2019
Internet earnings for the interval (a)		571		844
Complete earnings that won’t be reclassified to earnings assertion
– Actuarial good points (and losses) on outlined profit plans		(20)		(29)
– Deferred taxes on complete earnings that won’t be reclassified to earnings assertion		3		5
Complete earnings which may be reclassified to earnings assertion
– Remeasurement of hedging devices		(89)		(84)
– Consolidation translation changes		(633)		78
Whole different complete earnings (b)		(739)		(30)
Whole complete earnings for the interval (a) + (b)		(168)		814
Of which:
– Whole complete earnings for the interval attributable to non-controlling pursuits		(7)		3
– Whole complete earnings for the interval attributable to fairness holders of the dad or mum firm		(161)		811

Consolidated steadiness sheet

(in thousands and thousands of euros)		December 31, 2020		December 31, 2019
Belongings
Goodwill, web		10,858		11,629
Intangible belongings, web		1,509		1,979
Proper-of-use belongings associated to leases		1,645		2,122
Property, plant and tools, web		626		720
Deferred tax belongings		137		143
Investments in associates		24		32
Different monetary belongings		232		218
Non-current belongings		15,031		16,843
Inventories and work-in-progress		230		411
Commerce receivables		9,508		10,233
Contract belongings		889		1,002
Different present receivables and present belongings		803		757
Money and money equivalents		3,700		3,413
Present belongings		15,130		15,816
Whole belongings		30,161		32,659

Fairness and liabilities
Share capital		99		96
Extra paid-in capital and retained earnings, Group share		7,083		7,305
Fairness attributable to holders of the dad or mum firm		7,182		7,401
Non-controlling pursuits		(22)		(9)
Whole fairness		7,160		7,392
Lengthy-term borrowings		3,653		4,286
Lengthy-term lease liabilities		1,850		2,196
Deferred tax liabilities		247		413
Lengthy-term provisions		468		426
Non-current liabilities		6,218		7,321
Commerce payables		12,887		13,411
Lease liabilities		404		353
Brief-term borrowings		856		1,602
Brief-term lease liabilities		292		336
Revenue taxes payable		296		351
Brief-term provisions		234		170
Different collectors and present liabilities		1,814		1,723
Present liabilities		16,783		17,946
Whole fairness and liabilities		30,161		32,659

Consolidated assertion of money flows

(in thousands and thousands of euros)		2020		2019
Money circulate from working actions
Internet earnings		571		844
Neutralization of non-cash earnings and bills:
Revenue taxes		196		305
Value of web monetary debt		119		25
Capital losses (good points) on disposal of belongings (earlier than tax)		(6)		(20)
Depreciation, amortization and impairment loss		1,180		999
Share-based compensation		55		49
Different non-cash earnings and bills		94		88
Share of revenue of associates		1		5
Dividends obtained from associates		2		2
Taxes paid		(293)		(349)
Change in working capital necessities(1)		1,047		394
Internet money flows generated by (utilized in) working actions (I)		2,966		2,342
Money circulate from investing actions
Purchases of property, plant and tools and intangible belongings		(167)		(232)
Disposals of property, plant and tools and intangible belongings		12		7
Purchases of investments and different monetary belongings, web		(9)		20
Acquisitions of subsidiaries		(146)		(4,143)
Disposals of subsidiaries		1		88
Internet money flows generated by (utilized in) investing actions (II)		(309)		(4,260)
Money circulate from financing actions
Dividends paid to holders of the dad or mum firm		(102)		(285)
Dividends paid to non-controlling pursuits		(10)		(12)
Proceeds from borrowings		2		3,413
Reimbursement of borrowings		(1,302)		(485)
Reimbursement of lease liabilities		(384)		(403)
Curiosity paid on lease liabilities		(77)		(77)
Curiosity paid		(184)		(96)
Curiosity obtained		71		107
Buyouts of non-controlling pursuits		(10)		(40)
Internet (buybacks)/gross sales of treasury shares and warrants		8		7
Internet money flows generated by (utilized in) financing actions (III)		(1,988)		2,129
Affect of alternate fee fluctuations (IV)		(379)		4
Change in consolidated money and money equivalents (I + II + III + IV)		290		215
Money and money equivalents on January 1		3,413		3,206
Financial institution overdrafts on January 1		(6)		(14)
Internet money and money equivalents at starting of 12 months (V)		3,407		3,192
Money and money equivalents at cut-off date		3,700		3,413
Financial institution overdrafts at cut-off date		(3)		(6)
Internet money and money equivalents at finish of the 12 months (VI)		3,697		3,407
Change in consolidated money and money equivalents (VI – V)		290		215
(1) Breakdown of change in working capital necessities
Change in stock and work-in-progress		139		(14)
Change in commerce receivables and different receivables		(24)		(529)
Change in accounts payable, different payables and provisions		932		937
Change in working capital necessities		1,047		394

Consolidated assertion of adjustments in fairness

Variety of excellent shares		(in thousands and thousands of euros)		Share capital		Extra paid-in capital		Reserves and earnings introduced ahead		Translation reserve		Honest worth reserve		Fairness attributable to fairness holders of the dad or mum firm		Minority pursuits		Whole fairness
236,956,827		January 1, 2020		96		4,137		3,240		(185)		113		7,401		(9)		7,392
		Internet earnings						576						576		(5)		571
		Different complete earnings, web of tax								(631)		(106)		(737)		(2)		(739)
		Whole complete earnings for the 12 months						576		(631)		(106)		(161)		(7)		(168)
7,035,496		Dividends		3		169		(274)						(102)		(10)		(112)
274,325		Share-based compensation, web of tax						56						56				56
		Impact of acquisitions and commitments to purchase out non-controlling pursuits						(6)						(6)		4		(2)
22,156		Fairness warrant train				1								1				1
1,288,975		(Buybacks)/gross sales of treasury shares						(7)						(7)				(7)
245,577,779		December 31, 2020		99		4,307		3,585		(816)		7		7,182		(22)		7,160

Variety of excellent shares		(in thousands and thousands of euros)		Share capital		Extra paid-in capital		Reserves and earnings introduced ahead		Translation reserve		Honest worth reserve		Fairness attributable to fairness holders of the dad or mum firm		Minority pursuits		Whole fairness
231,240,308		January 1, 2019		94		3 926		2,875		(263)		221		6,853		–		6,853
		Internet earnings						841						841		3		844
		Different complete earnings, web of tax								78		(108)		(31)		(0)		(31)
		Whole complete earnings for the 12 months						841		78		(108)		811		3		814
4,481,915		Dividends		2		206		(493)						(285)		(12)		(297)
522,277		Share-based compensation, web of tax						48						48				48
		Impact of acquisitions and commitments to purchase out non-controlling pursuits						(40)						(40)				(40)
183,068		Fairness warrant train		0		5								5				5
529,259		(Buybacks)/gross sales of treasury shares						9						9				9
236,956,827		December 31, 2019		96		4,137		3,240		(185)		113		7,401		(9)		7,392

Earnings per share (fundamental and diluted)

(in thousands and thousands of euros, apart from share knowledge)				2020		2019
Internet earnings used for the calculation of earnings per share
Group web earnings		A		576		841
Affect of dilutive devices:
– Financial savings in monetary bills associated to the conversion of debt devices, web of tax				–		–
Group web earnings – diluted		B		576		841
Variety of shares used to calculate earnings per share
Variety of shares at January 1				240 437 061		235,249,801
Shares created over the 12 months				1 974 862		2,457,867
Treasury shares to be deducted (common for the 12 months)				(2 573 576)		(3,414,634)
Common variety of shares used for the calculation		C		239 838 347		234,293,034
Affect of dilutive devices:
– Free shares and dilutive inventory choices(1)				1 977 939		1,951,354
– Fairness warrants (BSA)(1)				110 267		364,209
Variety of diluted shares		D		241 926 553		236,608,597
(in euros)
Earnings per share		A/C		2,40		3.59
Diluted earnings per share		B/D		2,38		3.55

(1)

Solely inventory choices and warrants with a dilutive impression, i.e. whose strike worth is decrease than the typical strike worth, are included within the calculation. At December 31, 2020, unexercised stock-options weren’t taken into consideration as a result of they have been earnings accretive.

Headline earnings per share (fundamental and diluted)

(in thousands and thousands of euros, apart from share knowledge)				2020		2019
Internet earnings used to calculate headline earnings per share(1)
Group web earnings				576		841
Gadgets excluded:
– Amortization of intangibles from acquisitions, web of tax				254		153
– Impairment loss(2), web of tax				185		163
– Foremost capital good points and losses on disposal of belongings and honest worth adjustment of economic belongings, web of tax				(9)		(21)
– Epsilon acquisition-related prices, web of tax				–		30
– Anticipated unwinding of swaps				11
– Revaluation of earn-out funds				17		22
Headline Group web earnings		E		1 034		1,188
Affect of dilutive devices:
– Financial savings in monetary bills associated to the conversion of debt devices, web of tax				–		–
Headline Group web earnings, diluted		F		1 034		1,188
Variety of shares used to calculate earnings per share
Variety of shares at January 1				240 437 061		235,249,801
Shares created over the 12 months				1 974 862		2,457,867
Treasury shares to be deducted (common for the 12 months)				(2 573 576)		(3,414,634)
Common variety of shares used for the calculation		C		239 838 347		234,293,034
Affect of dilutive devices:
– Free shares and dilutive inventory choices				1 977 939		1,951,354
– Fairness warrants (BSA)				110 267		364,209
Variety of diluted shares		D		241 926 553		236,608,597
(in euros)
Headline earnings per share(1)		E/C		4,31		5.07
Headline earnings per share – diluted(1)		F/D		4,27		5.02

(1)		EPS after elimination of impairment expenses, amortization of intangibles from acquisitions, the primary capital good points (or losses) on disposals of belongings, change within the honest worth of economic belongings, the prices of the anticipated unwinding of cross-currency swaps (in 2020), the revaluation of earn-out prices and Epsilon transaction prices (in 2019).
(2)		This quantity consists of impairment losses on right-of-use belongings associated to leases for euro 170 million in 2020 and euro 95 million in 2019.