Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Q3 2013 Earnings Presentation
36 slides from Publicis Groupe Sa's earnings presentation, Oct 16, 2013
Slide 1: Q3 2013
Q3 2013 oe PUBLICIS GROUPE
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements. The use of the words “aim(s),” “expect(s),” “feel(s),” “will,” “may,” “believe(s),” “anticipate(s)” and similar expressions in this presentation are intended to identify those statements as forward-looking. Forward-looking statements
Slide 3: Q3 2013 Revenue
Q3 2013 (EUR million) Q3 YTD REVENUE 1,675 5,026 Var. 2013/2012 +3.0% +6.7% Var. excl. Forex +9.3% +10.1% Organic Growth +3.5% +3.3% ON TRACK 3 PUBLICIS GROUPE
Slide 4: Q3 2013 Highlights
Q3 2013 HIGHLIGHTS Context Uncertainties in Europe Economic slowdown in Brazil and China Syria conflict risk Publicis Groupe Europe: positive trend Bric-Missat: contrasted performances Healthcare: slow pick-up Digital: double digit growth PUBLICIS GROUPE 4
Slide 5: Q3 2013 Net New Business
Q3 2013 NET NEW BUSINESS YTD USD 3.4 billion 5 PUBLICIS GROUPE
Slide 6: Q3 2013 Revenue by Geography
Q3 2013 REVENUE BY GEOGRAPHY (EUR million) Q3 2013 Q3 2012 Organic Growth Q3 2013 Var. 2013 vs 2012 Europe (*) 469 429 +0.4% +9.3% North America 825 805 +4.5% +2.5% BRIC + MISSAT (**) 217 220 +1.5% -1.4% Row 164 173 +10.1% -5.2% Total 1,675 1,627 +3.5% +3.0% (*) : Europe excluding Russia and Turkey
Slide 7: YTD Organic Growth by Geography
SEPTEMBER 30, 2013 - YTD ORGANIC GROWTH BY GEOGRAPHY (EUR million) Sept. 30 2013 YTD Sept. 30 2012 YTD Organic Growth YTD 2013 Var. 2013 vs 2012 Europe (*) 1,439 1,308 -2.3% +10.0% North America 2,455 2,312 +5.5% +6.2% BRIC + MISSAT (**) 651 605 +4.1% +7.6% Row 481 486 +7.6% -1.0% Total 5,026 4,711
Slide 8: September 30, 2013 YTD Revenue by Region in US Dollars
SEPTEMBER 30,2013 - YTD REVENUE BY REGION IN US DOLLARS (USD million) Sept YTD 2013 Sept YTD 2012 Var. 2013/2012 Europe (*) 1,895 1,675 +13.1% North America 3,233 2,961 +9.2% BRIC + MISSAT (**) 858 679 +26.4% ROW 633 590 +7.3% Total Groupe 6,619 5,788 +14.4% (*) : Europe excluding Russia and Turkey
Slide 9: Q3 2013 Organic Growth Rate by Country
Q3 2013 ORGANIC GROWTH RATE BY COUNTRY Organic Growth Rate Q3 2013 YEAR TO DATE 2013 Above 10% Netherlands, Austria, Portugal, Poland, Turkey, Argentina, Venezuela, Chile, Australia, Thailand, South Africa, Saudi Arabia Netherlands, Turkey, Argentina, Venezuela, Chile, Colombia, New Zealand, Saudi A
Slide 10: Digital
DIGITAL YTD 2012 YTD 2013 Q3 2013 % of Group revenue 33.3% 37.6% 39.0% EUR Million 1,569 1,890 652 Organic Growth + 11.5% + 12.3% PUBLICIS GROUPE 10
Slide 11: YTD Digital Revenue by Geography
SEPTEMBER 30, 2013 - YTD DIGITAL REVENUE BY GEOGRAPHY (EUR million) PUBLICIS % of Digital revenue % of Digital in total Ad Spend (***) Europe (*) 31.2% 23.5% North America 51.8% 22.3% BRIC + MISSAT (**) 13.6% 15.2% Row 16.8% 19.3% Total 37.6% 20.5% (*) : Europe excluding Russia and Turkey (**) : MIS
Slide 12: Fast Growing Markets
FAST GROWING MARKETS YTD 2012 YTD 2013 Q3 2013 % of Group revenue 24.8% 24.1% 24.1% EUR Million 1,168 1,209 403 Organic Growth + 5.3% + 5.2% 12 PUBLICIS GROUPE
Slide 13: YTD 2013: Organic Growth by Region and Activity
YTD 2013: ORGANIC GROWTH BY REGION AND ACTIVITY Europe (*) North America BRIC + MISSAT ROW Total Digital +6.6% +11.3% +26.2% +25.3% +11.5% Analog -5.1% - +1.6% +4.8% -0.8% Total -2.3% +5.5% +4.1% +7.6% +3.3% * Europe excluding Russia and Turkey PUBLICIS GROUPE 13
Slide 14: Finance
FINANCE ge PUBLICIS GROUPE
Slide 15: YTD Net Debt
SEPTEMBER 30, 2013 - YTD NET DEBT In € million Net Debt Average net Debt 524 550 764 584 September 30 2012 September 30 2013 September YTD 2012 September YTD 2013 15 PUBLICIS GROUPE
Slide 16: Gross Debt Split by Maturity
GROSS DEBT AT SEPTEMBER 30, 2013 SPLIT BY MATURITY (EUR million) Total Oct 2013 - Sep 2014 Oct 2014 - Sep 2015 Oct 2015 - Sep 2016 Oct 2016 - Sep 2017 Oct 2017 onwards Oceane 2018* 128 128 - - - - Eurobond 2015 263 - 263 - - - Oranes 41 41 - - - - Earn-out / Buy-out 380 214 88 68 8 2 Other debt** 55
Slide 17: Liquidity
LIQUIDITY AT SEPTEMBER 30, 2013 (EUR million) Total Drawn Available Committed Facilities: 364-day revolving credit facilities 205 165 40 5-year revolving credit facilities * 506 - 506 5-year syndicated facility (Club Deal) ** 1,200 1,200 Total Committed Facilities 1,911 165 1,746 Cash and Marketable
Slide 18: Publicis Omnicom Merger Update
PUBLICIS OMNICOM MERGER UPDATE PUBLICIS GROUPE
Slide 19: Publicis Omnicom Merger
Publicis Omnicom Merger Publicis and Omnicom: A merger of the two “Best in class” Strongest track records of financial performances in the industry Two solid balance sheets: ability to invest and make acquisitions Strong cash flow generation for shareholders Advantages of scale Full spectrum of disc
Slide 20: Publicis Omnicom Merger
Publicis Omnicom Merger Big ideas and creativity will not be replaced by algorithms Clients are looking for ideas and executions and working across all mediums Publicis and Omnicom have the creativity and expertise with new technologies that is the winning formula for clients Publicis always believe
Slide 21: Publicis Omnicom Merger on Track
Publicis Omnicom Merger on track Anti-trust filings made in most of the jurisdictions US: filed at the beginning of October; FTC review proceeding Europe: draft notification discussed with the Commission since mid September China: draft filing has been provided to MOFCOM according to local procedure
Slide 22: ORANE Holders Meeting October 10th 2013
ORANE HOLDERS MEETING OCTOBER 10th 2013 ORANE holders unanimously agreed the merger with Omnicom ORANE holders unanimously agreed the early redemption of ORANES in exchange of Publicis shares at completion of the merger ORANE holders unanimously approved the calculation of the accrued coupon A posit
Slide 23: Outlook
OUTLOOK ge PUBLICIS GROUPE
Slide 24: 2013 Ad Spend Forecasts at +3.5%
2013 AD SPEND FORECASTS AT +3.5% Worldwide United States Japan United Kingdom Germany China France Italy Spain Brazil Ad Agencies Revenue Growth Estimate 2013 Forecast As of September 2013* +3.5% +3.4% +1.9% +2.9% -1.5% +10.1% -2.5% -14.2% -9.9% +5.0% +2.3% 2013 Forecast As of December 2012* +4.1% +
Slide 25: 2013 Growth Trends
2013 GROWTH TRENDS Europe: slight growth expected in Q4 2013 USA: solid and sustainable growth shutdown consequences? ROW/BRIC: single digit growth in China and Brazil Digital: double digit growth Reminder: As always, possible investments adjustments in Nov. and Dec. according to corporations’ resul
Slide 26: Publicis Groupe Internal Objectives
PUBLICIS GROUPE INTERNAL OBJECTIVES O RGANIC GROWTH INTERNAL OBJECTIVE +3.5/+3.6% O PERATING MARGIN : SLIGHT IMPROVEMENT IN 2013 26 PUBLICIS GROUPE
Slide 27: Appendix
APPENDIX PUBLICIS GROUPE
Slide 28: YTD Revenue by Geography
SEPTEMBER 30, 2013 - YTD REVENUE BY GEOGRAPHY 49% 30% 6% 3% 12% 28 PUBLICIS GROUPE
Slide 29: YTD Revenue by Activity
SEPTEMBER 30, 2013 - YTD REVENUE BY ACTIVITY Media 17% 17% in 2012 SAMS 17% 19% in 2012 Advertising 28% 31% in 2012 Digital 38% 33% in 2012 29 PUBLICIS GROUPE
Slide 30: YTD Revenue by Sector
SEPTEMBER 30, 2013 - YTD REVENUE BY SECTOR September YTD 2013 5% 4% 5% 11% 13% 13% 16% 33% FMCG TMT Healthcare Automotive Financial Leisure/Energy/Luxury Retail Others September YTD 2012 4% 4% 5% 11% 13% 13% 16% 34% Based on 1,811 clients representing 84% of Group revenue 30 PUBLICIS GROUPE
Slide 31: YTD Split of Revenues by Sector Digital vs. Analog
SEPTEMBER 30, 2013 – YTD SPLIT OF REVENUES BY SECTOR DIGITAL vs. ANALOG 26% +400bp 74% FMCG 54% +500bp TMT 46% 39% +500bp 61% Healthcare 38% +100bp 62% Automotive 60% +200bp 40% Financial 44% +600bp 56% Leisure/Energy/Luxury 38% +900bp 62% Retail + x.x bp is the variation vs 2012 Digital weight Anal
Slide 32: Q3 2013 and YTD Revenue & Organic Growth Calculation
Q3 2013 and SEPTEMBER 30, 2013 – YTD REVENUE & ORGANIC GROWTH CALCULATION (EUR million) H1 2013 Q3 2013 Sep. YTD 2012 Revenue 3,084 1,627 4,711 Currency impact (53) (95) (148) 2012 Revenue at 2013 exchange rate (a) 3,031 1,532 4,563 2013 Revenue before impact of acquisitions (1) (b) 3,129 1,586 4,71
Slide 33: Net Debt Split by Currency
AT SEPTEMBER 30, 2013 NET DEBT SPLIT BY CURRENCY (EUR million) Total EURO USD GBP Others Oceane 2018 128 128 Eurobond 2015 263 263 Orane 41 41 Earn-out / Buy-out 380 36 60 28 256 Other * 554 825 (15) (37) (219) Cash and marketable securities (816) (239) (14) (9) (554) Net debt (Cash) 550 1,054 31 (1
Slide 34: Net Debt Split by Rate
AT SEPTEMBER 30, 2013 NET DEBT SPLIT BY RATE (EUR million) Total Earn-out / Buy-out Fixed Rate Variable Rate Oceane 2018 128 128 Eurobond 2015 263 263 Orane 41 41 Other debt* 554 80 474 Total gross debt excl. Earn-out / Buy-out 986 512 474 Earn-out / Buy-out 380 380 Cash and marketable securities (8
Slide 35: Q3 2013 Revenue by Geography – Old Split
Q3 2013 REVENUE BY GEOGRAPHY – OLD SPLIT (EUR million) Q3 2013 Q3 2012 Organic Growth Q3 2013 Var. 2013 vs 2012 Europe 489 451 +0.4% +8.4% North America 825 805 +4.5% +2.5% Asia Pacific 207 211 +3.4% -1.9% Latin America 107 113 +9.0% -5.3% Middle East Africa 47 47 +7.4% - Total 1,675 1,627 +3.5% +3.
Slide 36: YTD Revenue by Geography – Old Split
SEPTEMBER 30, 2013 – YTD REVENUE BY GEOGRAPHY – OLD SPLIT (EUR million) Sept. 30 2013 YTD Sept. 30 2012 YTD Organic Growth YTD 2013 Var. 2013 vs 2012 Europe 1,505 1,376 -2.1% +9.4% North America 2,455 2,311 +5.5% +6.2% Asia Pacific 605 576 +5.7% +5.0% Latin America 323 319 +5.8% +1.3% Middle East Af