Publicis Groupe SA · EURONEXT:PUB
Publicis Groupe SA — Q3 2022 Earnings Presentation
29 slides from Publicis Groupe SA's earnings presentation, Oct 18, 2022
Slide 1: Q3 2022 Revenue
Q3 2022 REVENUE 18 October 2022 ig PuBLICIS
Slide 2: Disclaimer
DISCLAIMER Certain information contained in this document, other than historical information, may constitute forward-looking statements or unaudited financial forecasts. These forward-looking statements and forecasts are subject to risks and uncertainties that could cause actual results to differ ma
Slide 3: Q3 2022 Highlights
Q3 2022 HIGHLIGHTS Q3 2022 REVENUE OUTLOOK Q&A PuBLICIS
Slide 4: Strong Q3'22, ahead of expectations
STRONG Q3’22, AHEAD OF EXPECTATIONS Q3’22 Q3’22 9M’22 +10.5% +16% +21% organic organic reported versus 2027 versus 2019 versus 2027 = 34 consecutive quarter of double-digit growth with Q3 at +10.3% = Acceleration in momentum compared to pre-pandemic levels: +16% in Q3 versus 2019, after +12% in Q2 a
Slide 5: A strong activity mix, capturing the shift in client spend
A STRONG ACTIVITY MIX, CAPTURING THE SHIFT IN CLIENT SPEND Data & Tech publicis EPSILON sapient 1/3 of net revenue fe) 9 +1 8.1 % +13 : 9% significantly accretive to Q3’22 Q3’22 organic growth organic organic ability to capture strong digital media, strong DBT, direct-to- capturing the rise in consu
Slide 6: Solid performance in all geographies again this quarter
SOLID PERFORMANCE IN ALL GEOGRAPHIES AGAIN THIS QUARTER +11.1% +11.1% +4.1% U.S. organic : Europe organic APAC organic Q3’22 Q3’22 Q3’22 +20% vs. 2019 +11% vs. 2019 +6% vs. 2019 ° Publicis Sapient & Epsilon ° Europe up +12.8% excl. Outdoor * China up +5.9% - accelerating accelerating further this qu
Slide 7: Continued new business momentum after record H1
CONTINUED NEW BUSINESS MOMENTUM AFTER RECORD H1 2022 year-to-date New Business wins New Business wins rankings Mondelez,| | Crocs S sues, Global Media Media & Creative AOR Creative Global — J.P Morgan um {Y\ Ea ABInBev Gross Reported Billings Net Equivalent — Holding Company Wins Losses Net Revenue
Slide 8: Q3 2022 Revenue
Q3 2022 HIGHLIGHTS Q3 2022 REVENUE OUTLOOK Q&A PuBLICIS
Slide 9: Net revenue
NET REVENUE (EUR million) Ql Q2 Q3 9M 2022 net revenue 2,800 3,073 3,237 9,110 2021 net revenue 2,392 2,539 2,621 7,552 Reported growth +17.1% +21.0% +23.5% +20.6% OW FX impact +5.8% +10.0% 412.5% 49.5% Organic growth +10.5% +10.3% +10.3% +10.3% PUBLICIS GROUPE 9
Slide 10: Q3 2022 net revenue by geography
(EUR million) Q3 2022 Q3 2021 2022 vs. 2021 Q3 2022 NET REVENUE BY GEOGRAPHY Organic growth North America Europe a... ne pacite dle ez ect oatcn. tne — Latin America Total 694 303 90 74 3,237 2,076 1,602 2,621 +29. 6% +12, 1% +3. 9% +16. 9% +29.8% +23.5% +11. 0% om 1% +4, 1% +. 9% +19.4% +10.3% () O
Slide 11: Q3 2022 performance - North America
Q3 2022 PERFORMANCE - NORTH AMERICA 2022 Organic (EUR million) Q3 2022 Q3 2021 vs. 2021 growth North America 2,076 1,602 +29.6% +11.0% US * 61% of Groupe net revenue * Organic growth: +11.1% Media: double digit growth, in both traditional and digital Creative: high-single digit growth again this qua
Slide 12: Q3 2022 performance - Europe
Q3 2022 PERFORMANCE - EUROPE 2022 Organic (EUR million) Q3 2022 Q3 2021 vs. 2021 growth Europe 694 619 +12.1% 411.1% UK France Germany Central & Eastern Europe + 9% of Groupe net revenue + 5% of Groupe net revenue + 3% of Groupe net revenue * 2% of Groupe net revenue * Organic growth: +22.6% * Organ
Slide 13: Q3 2022 performance - Rest of World
Q3 2022 PERFORMANCE - REST OF WORLD (EUR million) Q3 2022 Q3 2021 2022 vs. 2021 Organic growth Asia Pacific Middle East Africa Latin America Asia Pacific + 9% of Groupe net revenue * Organic growth: +4.1% * Continued double-digit growth in Media, low single-digit in Creative * Recovery accelerating
Slide 14: 9M 2022 performance by industry
9M 2022 PERFORMANCE BY INDUSTRY Net revenue split Net revenue growth per client industry“) Leisure Energy & travel & man uf. Public +21% we Automotive sector & 47% Other 15% 47% Retail +21% Non-food consumer products +7% Financial 413% Food & beverage 3,442 main clients representing 92% of Groupe ne
Slide 15: Net financial debt
NET FINANCIAL Sep 30, Dec. 31, Sep 30, (EUR million) 2022 2021 2021 Net Financial Debt, LTM average 870 1,530 1,835 Net Financial Debt, at end of period 919 76 1,585 (Average net financial debt + 13x 1.6x 17x Average Lease liability) / EBITDA PUBLICIS GROUPE 45
Slide 16: Outlook
Q3 2022 HIGHLIGHTS Q3 2022 REVENUE OUTLOOK Q&A PuBLICIS
Slide 17: Outlook
OUTLOOK Upgrade FY 2022 guidance * Strong Q3’22 ina context of rising for the second time this year macroeconomic tensions, leading to 9M Organic growth at circa +8.5% organic growth at +10.3% from +6% to +7% previously * @4 organic upgraded to 3% to 5% Operating margin rate close to 18% Cautious st
Slide 18: The capabilities to face macro uncertainties ahead
THE CAPABILITIES TO FACE MACRO UNCERTAINTIES AHEAD AND THE SHIFTS IN MARKETING LANDSCAPE Successful integration of transformational acquisitions publicis . EPSILON sapient in Creative & Media Supported by our Country-model A new go-to-market & business mix To help clients weather macroeconomic chall
Slide 19: A unique offer recognized qualitatively
A UNIQUE OFFER RECOGNIZED QUALITATIVELY A superior offer recognized in external rankings FORRESTER FORRESTER : FORRESTER WAVE WAVE WAVE LEADER 2( LEADER LEADER 2( FORRESTER WAVE LEADER
Slide 20: And a unique model to accelerate on the new age of commerce
- AND A UNIQUE MODEL TO ACCELERATE ON THE NEW AGE OF COMMERCE The expertise to transform every brand experience into a commerce experience To help clients DATA TECH - CREATIVE MEDIA navigate, develop Leo Barut re 3 and activate CyTERCCumET Zenith seem _ commerce in a way Se publids SRST x EPSILON x
Slide 21: Conclusion
CONCLUSION New FY 2022 guidance upgrade after strong 9-month performance C.+8.5% Organic Growth | Close to 18% Operating Margin | Close to €1.6bn Free Cash Flow Strong dynamic despite current macroeconomic environment Unique capabilities | Platform organization Rewarding the outstanding dedication o
Slide 22: Q&A
Q3 2022 HIGHLIGHTS Q3 2022 REVENUE OUTLOOK Q&A PuBLICIS
Slide 23: Appendix
APPENDIX PuBLICIS
Slide 24: Net revenue & organic growth calculation
NET REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Qi Q2 Q3 2021 net revenue 2022 Currency impact (EUR million) Ql Q2 Q3 Currency impact 125 229 GBP ® 8 4 - 2021 net revenue at 2022 exchange rate (a) ” ne USD 2 100 190 254 is(b) 2,781 3,052 3,215 Other 7 35 41 Net revenue from acquisitions Total
Slide 25: Gross debt as of September 30, 2022
GROSS DEBT AS OF SEPTEMBER 30, 2022 Breakdown by maturity Oct 2022- Oct2023- Oct2024- Oct 2025- (EUR million) Total Sep 2023 Sep 2024 Sep 2025 Sep 2026 Beyond Eurobond 2023 499 499 Eurobond 2024 601 601 Eurobond 2025 “) 2 873 873 Eurobond 2028 “? 2 898 898 Eurobond 2031 927 927 Earn out / Buy out Ot
Slide 26: Net debt as of September 30, 2022
NET DEBT AS OF SEPTEMBER 30, 2022 Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 2024 601 601 Eurobond 2031 @) 927 927 vm ve crn ~S - a nn ae other woneana on - ~ ee — op ~ ar, nn ay a a Cash & marketable securities (3 005) (85) (1779) qs) (1126) Net debt (cash) 919 928 1058 1
Slide 27: Liquidity as of September 30, 2022
LIQUIDITY AS OF SEPTEMBER 30, 2022 September 30, 2022 Sept. 30, 2021 (EUR million) Total Drawn Available Available 364-day revolving credit facilities - 45 5-year revolving credit facility - 343 5-year syndicated facility (Club Deal) 2,000 - 2,000 2,000 Total Committed Facilities Cash and Marketable
Slide 28: Definitions
DEFINITIONS Net revenue: Revenue less pass-through costs which comprise amount paid to external suppliers engaged to perform a project and charged directly to clients. Those costs are mainly production & media costs and out of pocket expenses. Organic growth: Change in net revenue excluding the impa
Slide 29: Contact
CONTACT Press Amy Hadfield, Group Communications Director Tel. + 33 144 43 70 75 / Email. amy.hadfield@publicisgroupe.com Investor Relations Alessandra Girolami, Vice-President Investor Relations & Strategic Financial Planning Tel. + 33144 43 77 88 / Email. alessandra.girolami@publicisgroupe.com Dow