Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Q3 2024 Earnings Presentation
39 slides from Publicis Groupe Sa's earnings presentation, Oct 17, 2024
Slide 1: Q3 2024 Revenue
Q3 2024 REVENUE 17 October 2024 ig PuBLICIS
Slide 2: Q3 2024 Highlights & FY 2024 Outlook
Q3 2024 HIGHLIGHTS & FY 2024 OUTLOOK Q3 2024 REVENUE & NET DEBT STRATEGIC UPDATE Q&A PuBLICIS
Slide 3: 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 4: Key Highlights
3 KEY HIGHLIGHTS FROM Continuing to win market share with +5.8% organic growth in Q3’24 Outperforming the industry by more than 300bps “© Upgrading FY’24 organic growth guidance floor to +5.5% Sustaining momentum in Q4 in a more challenging macro Consolidating leadership in influence and commerce wi
Slide 5: Highlights
HIGHLIGHTS +5.8% Despite no improvement in macroeconomic environment a Net new business billings ($bn) Q3 2024 mo Ability to capture a Be omen we -0.0 YTD September 2024 . . = mas | [se disproportionate share “, of clients’ spend on x oom om le . . ae “ personalization at scale Source: JP Morgan Res
Slide 6: Highlights
HIGHLIGHTS c. 50% of net revenue c. 15% of net revenue c. 1/3 of net revenue Media + epsilon Q3 Almost +10% Epsilon’s leading proprietary data assets *% Publicis Media’s scale publicis sapient Q3 -1.1% Sequential improvement Client cautiousness across all IT consulting firms Creative Q3 Mid-single d
Slide 7: Highlights
HIGHLIGHTS U.S. Q3 +4.0% organic growth Affirming the Groupe’s leading position in the market PUBLICIS GROUPE Europe Q3 +4.9% organic growth Accelerating versus Q2’24 Asia-Pacific Q3 +6.4% organic growth Very strong China at +12.4% fuelled by continued new business wins
Slide 8: Highlights
HIGHLIGHTS FY’24 organic growth Upgrading floor to +5.5% versus +5.0% previously Stronger acceleration | Industry vs. 4-year CAGR +4.7% outperformance Including macro uncertainties... ° Affecting client spend * Weighing on DBT * Impacting clients’ end-of-year adjustments - Operating margin rate Free
Slide 9: Q3 2024 Revenue & Net Debt
Q3 2024 HIGHLIGHTS & FY 2024 OUTLOOK Q3 2024 REVENUE & NET DEBT STRATEGIC UPDATE Q&A PuBLICIS
Slide 10: Net Revenue
NET REVENUE (EUR million) Ql Q2 Q3 9M 2024 net revenue 3,230 3,458 3,423 10,111 2023 net revenue 3,079 3,239 3,241 9,559 Reported growth +4.9% +6.8% +5.6% +5.8% Organic growth +5.3% +5.6% +5.8% +5.6%
Slide 11: Q3 2024 Net Revenue by Geography
Q3 2024 NET REVENUE BY GEOGRAPHY 2024 Organic (EUR million) Q3 2024 Q32023_ vs. 2023 growth North America 2,105 1,999 +5.3% +4.7% Europe 812 769 ‘+5. 6% oe 9% ne, Paci —— oc 8. oe EE me wl “vndie ez cant a wea ses a 5% [a a x wl ae Amerie | ———".. " a a. 30, *% | —— — a — m. 7 - a PUBLICIS GROUPE at
Slide 12: Q3 2024 Performance - North America
PUBLICIS GROUPE Q3 2024 PERFORMANCE - NORTH AMERICA 2024 Organic (EUR million) Q3 2024 Q3 2023 vs. 2023 growth North America 2,105 1,999 +5.3% +4.7% US » 59% of Groupe net revenue * Organic growth: +4.0% Media & Epsilon: Growing high-single digit together, thanks to our ability to take share in pers
Slide 13: Q3 2024 Performance - Europe
Q3 2024 PERFORMANCE - EUROPE 2024 Organic (EUR million) Q3 2024 Q3 2023 vs. 2023 growth Europe 812 769 +5.6% +4.9% 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: -2.6% Organic growth:
Slide 14: Q3 2024 Performance - Rest of World
Q3 2024 PERFORMANCE - REST OF WORLD 2024 Organic (EUR million) Q3 2024 Q3 2023 vs. 2023 growth Asia Pacific 307 288 +6.6% +6.4% “Wadie £ -_ 7 . ae rn Latin America 94 90 +4.4% +30.3% Asia Pacific + 9% of Groupe net revenue * Organic growth: +6.4% * Strong growth in China again this quarter at +12.4%
Slide 15: Q3 2024 Performance by Industry
Q3 2024 PERFORMANCE BY INDUSTRY Net revenue growth per client industry © Public Ep, ergy sector Leisure® Other & manuf. eisure” zo, & travel Healthcare +24% Automotive Non-food consumer products Uks +1% +4% T™MT Financial +9% +2% Food & beverage 0% PUBLICIS Groure = 1)._— Growth at constant currenci
Slide 16: Net Financial Debt
NET FINANCIAL DEBT Sep 30, June 30, Sep 30, (EUR million) 2024 2024 2023 Net financial debt, average (LTM) 406 375 451 Net financial debt, at end of period 1,710 99 714 PUBLICIS GROUPE 16
Slide 17: Strategic Update
Q3 2024 HIGHLIGHTS & FY 2024 OUTLOOK Q3 2024 REVENUE & NET DEBT STRATEGIC UPDATE Q&A PuBLICIS
Slide 18: #1 independent commerce marketing company
#1 independent commerce marketing company Cc. in high-growth segments to complement our model GROUPE
Slide 19: Imperatives for marketers to succeed
3 imperatives for marketers to succeed #1 Bh #2 Fuel thousands d Engage-audiences & of media channels , authentically with custom "A throughinfluencers, Keep up with new shopping experiences, at the speed of commerce A content for every whosé reach rivals CF screen top publishers
Slide 20: Influence
INFLUENCE
Slide 21: Influence
cs INFLUENCE ls PuBLicIS GROUPE | Epsilon MEDIA Z CORE ID COMMERCE Connected Media Ecosystem Clear leadership on expertises Linked to Epsilon’s identity Built in a transparent client environment
Slide 22: Clear leadership on expertises
Clear leadership on expertises Gy MEDIA picitas die, Invested in Paid & Owned Media + Developed capabilities in owned media like CRM + Made publishers addressable at 90% + Exclusive partnerships with platforms CORE ID PuBLicIS GROUPE
Slide 23: Core ID / Commerce
CORE ID COMMERCE WARSI =AProfitero PuBLicIS GROUPE Clear leadership on expertises Invested in Paid & Owned Media + Developed capabilities in owned media like CRM + Made publishers addressable at 90% + Exclusive partnerships with platforms Doubled-down on Commerce * 360-degree view of purchase journe
Slide 24: Accelerated on Creators
g sal INFLUENCE © influential PuBLicIS GROUPE CORE ID Clear leadership on expertises Invested in Paid & Owned Media + Developed capabilities in owned media like CRM + Made publishers addressable at 90% + Exclusive partnerships with platforms Doubled- down on Commerce 360-degree view of purchase jour
Slide 25: Linked to Epsilon's Identity
Linked to Epsilon’s Identity <psilon * Strongest consumer 1* party data -_ e * 2 billion individual profiles globally | cpsilon | | CORE ID ©) Personalization at scale INFLUE! EDIA PuBLicIS
Slide 26: Record #: 24061997
| | RECORD #: 24061997 S| WHO WHERE WHAT WHEN WHO WHAT \ I Ib uy | follow | watch 28 yo, female, amazon SEPHORA October 5th 2024, re » of & Lives in urban area Walmart >!< 8 1:45pm. & / 1S
Slide 27: Record #: 24061997
RECORD #: 24061997 WHO lam WHERE I shop WHAT | buy Oe WHEN | buy 28 yo, female, amazon s—EPHORA Lives in urban area October 5th 2024, Walmart >\¢ 1:45pm WHO | follow WHAT | watch £20 © Brands can connect with her through: > The media she cares about > The influencers she follows > The platforms wher
Slide 28: e- BHT Ore OS ee OES SF OES
e- 6 BHT Ore 2 OS ee OES SF OES ‘ thanks to Al
Slide 29: Built in a transparent client environment
cs INFLUENCE PuBLicIS GROUPE | Epsilon MEDIA Z CORE ID COMMERCE Built in a transparent client environment Clean Data + Responsibly and transparently manage clients’ data * One client’s data is never used for another or to enrich our own data Clean Internet * Zero tolerance for garbage inventory + Ad
Slide 30: Our model
Our model ACTIVATE FUELED BY POWERED BY Connected Media Ecosystem «&) Intelligent Content () Technology close to 65% c. 20% 15% of Groupe net revenue of Groupe net revenue of Groupe net revenue ©) Fits the new marketing rules & responds to client needs Confident in sustaining our outperformance
Slide 31: Conclusion
CONCLUSION In amore challenging macro context Very strong Q3’24 at +5.8% organic growth after +5.4% in H1’24 Upgrading floor of FY’24 organic growth guidance to +5.5% Sustaining momentum into Q4 | Accelerating vs. 4-year CAGR at +4.7% Two strategic acquisitions in influencer marketing and commerce C
Slide 32: Q&A
Q3 2024 HIGHLIGHTS & FY 2024 OUTLOOK Q3 2024 REVENUE & NET DEBT STRATEGIC UPDATE Q&A PuBLICIS
Slide 33: Appendix
APPENDIX PuBLICIS
Slide 34: Net Revenue & Organic Growth Calculation
NET REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Ql a2 Q3 2024 currency impact 2023 net revenue (EUR million) Ql Q2 Currency impact (29) 13 GBP 9 6 2023 net revenue at 2024 exchange rate (a) = ne USD 2 (22) 21 2024 net revenue before impact of acquisitions (b) Other (16) (4) ns 18 25 Total (29
Slide 35: Gross Debt as of September 30, 2024
GROSS DEBT AS OF SEPTEMBER 30, 2024 Breakdown by maturity Oct. 2024- Oct.2025- Oct.2026- Oct.2027- Oct. 2028 (EUR million) Total Sep. 2025 Sep. 2026 Sep. 2027 Sep. 2028 Onwards Eurobond 2024 600 600 - - - - Eurobond 2025 “) @) 759 759 - - - - Eurobond 2028 “) @ 777 - - - 777 - a) Earn out / Buy out
Slide 36: Net Debt as of September 30, 2024
NET DEBT AS OF SEPTEMBER 30, 2024 Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 2024 Eurobond 2025 (02) 759 - 759 - - Eurobond 2028 © @ 777 - 777 - - Eurobond 2031 “ @) 792 - 792 - - 324 ot o a eo} Cash & marketable securities (1,694) (6) (1,132) Net debt (cash) 1,710 534 2,2
Slide 37: Liquidity as of September 30, 2024
LIQUIDITY AS OF SEPTEMBER 30, 2024 September 30, September 30, 2024 2023 (EUR million) Total Drawn Available Available 5-year syndicated facility (Club Deal) 2,000 2,000 2,000 Total Committed Facilities 2,000 2,000 2,000 Cash and Marketable Securities 1,694 3,174 Total liquidity 3,694 5,174 (1) €2,0
Slide 38: 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. These costs are mainly production and media costs, and out of pocket expenses. Organic growth: Change in net revenue excluding the i
Slide 39: Contact
CONTACT Press Amy Hadfield, Director of Global Communications | Email. amy.hadfield@publicisgroupe.com Investor Relations Jean-Michel Bonamy, Deputy CFO - Investor Relations | Email. jean-michel.bonamy@publicisgroupe.com Loréne Fleury | Email. lorene.fleury@publicisgroupe.com Maxine Miller | Email.