Publicis Groupe Sa · EURONEXT:PUB

Publicis Groupe Sa — Investor Day (March 2018)

19 slides from Publicis Groupe Sa's investor day presentation, March 2018

1. Slide 1: Publicis Groupe Investor Day: Financial Outlook

   PUBLICIS GROUPE INVESTOR DAY FINANCIAL OUTLOOK

2. Slide 2: Disclaimer

   DISCLAIMER All the financial information and projections in this presentation have been prepared excluding the application of IFRS 15 as of January 1, 2018, the application IFRS 16 as of January 1, 2019, and the impact of currency movements. Publicis Groupe does not anticipate those three items to i

3. Slide 3: Execution Plan

   EXECUTION PLAN 2016 – 2017 2018 – 2020 2020 onwards BUILDING DELIVERING NEW MODEL THE FOUNDATIONS FOR WHILE AT TRANSFORMATION TRANSFORMING FULL SPEED INCREASE VALUE FOR OUR CLIENTS, PEOPLE AND SHAREHOLDERS

4. Slide 4: Delivering While Transforming

   EXECUTION PLAN 2018 – 2020 DELIVERING WHILE TRANSFORMING 1. 2. 3. ACCELERATE INVEST IN INCREASE ORGANIC GROWTH OUR FUTURE EFFICIENCY 4

5. Slide 5: 1. Accelerate Organic Growth: Strategic Game Changers

   1. ACCELERATE ORGANIC GROWTH STRATEGIC GAME CHANGERS Direct revenue from our Strategic Game Changers + € 650 million Cross-selling + new business + € 600 million Attrition on mature business - € 350 million € 900 MILLION INCREMENTAL REVENUE BY 2020 +4% ORGANIC GROWTH IN 2020

6. Slide 6: Direct Revenue from Strategic Game Changers: +€650M

   1. ACCELERATE ORGANIC GROWTH DIRECT REVENUE FROM STRATEGIC GAME CHANGERS: + €650 M € 150 0 m DATA: PUBLICIS PEOPLE CLOUD € 850 m • Leverage data to take better marketing and business decision CONTENT: DYNAMIC CREATIVE • Deliver one to one content at scale CONSULTING & TECHNOLOGY: DIGITAL BUSINESS TR

7. Slide 7: Strategic Game Changers: +€300 Million Revenue

   1. ACCELERATE ORGANIC GROWTH STRATEGIC GAME CHANGERS CROSS-SELLING ON ADDITIONAL EXPERTISE NEW BUSINESS FOR EXISTING CLIENTS WITH NEW CLIENTS +€ 300 MILLION REVENUE +€ 300 MILLION REVENUE BY 2020 BY 2020

8. Slide 8: 2. Invest in Our Future

   2. INVEST IN OUR FUTURE INVESTMENT OVER 2018 - 2020 BOLT-ON ACQUISITIONS: TALENTS: € 300 M CAPEX: € 100 M € 300 M - € 500 M per year Data specialists, data scientists Marcel Data Dynamic Creative Content Publicis People Cloud Dynamic Creative Consulting Automation Digital Business Transformation Hir

9. Slide 9: 3. Increase Efficiency

   3. INCREASE EFFICIENCY 6 LEVERS TO ACHIEVE € 450 M OF COST REDUCTION, AT END OF 2020 Rightsizing mature business  € 200 M Capacity and planning  € 50 M Shared services  € 50 M Country support functions  € 30 M Real estate  € 70 M External spend  € 50 M

10. Slide 10: 1. Rightsizing Mature Businesses

    INCREASE EFFICIENCY 1. RIGHTSIZING MATURE BUSINESSES 5 initiatives to step change the efficiency of mature activities  Anticipate targeted headcount adjustments to align with revenue attrition  Automate low-value and people-intensive activities  Streamline operational capabilities in country led

11. Slide 11: Leverage Our Global Offshore Execution Platforms

    INCREASE EFFICIENCY LEVERAGE OUR GLOBAL OFFSHORE EXECUTION PLATFORMS India Colombia Costa Rica Mauritius Technology Technology Cloud/Dev ops Analytics Data/Analytics/AI Print & Digital Production Print & Digital Production TOTAL HEADCOUNT 8,000 700 8,700 GLOBAL EXECUTION PLATFORMS: 13,000 headcounts

12. Slide 12: 2. Develop Capacity & Planning Tool

    INCREASE EFFICIENCY 2. DEVELOP CAPACITY & PLANNING TOOL Power of One leads to rethink capacity and planning approach  Better allocation of our resources for clients  Utilization rates tracked as a management tool  Less need for freelancers CAPACITY AND PLANNING: € 50 million, by end of 2020

13. Slide 13: 3. Transform Shared Services

    INCREASE EFFICIENCY 3. TRANSFORM SHARED SERVICES PROCUREMENT PAYROLL AND EMPLOYMENT MATTERS IT TAX LEGAL ACCOUNTING TREASURY  Improve productivity ~4,500 employees  Increase and harmonize scope of work (i.e. of which 500 in Costa Rica and 1,100 in India Shadow IT) SHARED SERVICES CENTRES TRANSFORM

14. Slide 14: 4. Streamline Country Support Functions

    INCREASE EFFICIENCY 4. STREAMLINE COUNTRY SUPPORT FUNCTIONS PUBLICIS PUBLICIS PUBLICIS. PUBLICIS PUBLICIS PUBLICIS. COMMUNICATIONS MEDIA SAPIENT COMMUNICATIONS MEDIA SAPIENT SUPPORT FUNCTIONS RESOURCE SHARING ACROSS WITHIN SOLUTIONS & AGENCIES (FINANCE, HR, …) SOLUTIONS & AGENCIES COUNTRY SUPPORT FU

15. Slide 15: 5. Rationalize Real Estate

    INCREASE EFFICIENCY 5. RATIONALIZE REAL ESTATE “One roof” strategy across major markets CURRENT FOOTPRINT TARGETED FOOTPRINT 163 BUILDINGS < 100 BUILDINGS OCCUPANCY COSTS: € 70 million, by end of 2020

16. Slide 16: 6. Reduce External Spend

    INCREASE EFFICIENCY 6. REDUCE EXTERNAL SPEND IT • Address more of the external spend centrally FACILITY MANAGEMENT • Leverage strategic sourcing and fact-based negotiations OFFICE COSTS to fully leverage Groupe scale potential TRAVEL & EXPENSES • Reduce demand with higher compliance to existing poli

17. Slide 17: Drive Execution

    INCREASE EFFICIENCY DRIVE EXECUTION EFFICIENCY WORK STREAMS PROGRAM MANAGEMENT SET UP Program leadership RIGHTSIZING MATURE CAPACITY AND • Veronique Weill BUSINESS PLANNING • 1 leader per work stream Program governance and management SHARED COUNTRY SUPPORT • Program management office & SERVICES FUNC

18. Slide 18: Financials

    FINANCIALS  € 300 M - € 500 M per year of bolt-on acquisitions over 2018-2020  Organic growth acceleration towards +4.0% in 2020  Share buyback program should this amount not be reached  Margin rate improvement of 30 to 50 bps per year over  Incremental revenue and profit 2018-2020 from bolt-on

19. Slide 19: Q&A Session

    Q&A SESSION

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