Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Q1 2021 Earnings Presentation
30 slides from Publicis Groupe Sa's earnings presentation, Apr 15, 2021
Slide 1: Q1 2021 Results
Q1 2021 RESULTS 15 April 2021 ig PuBLICIS
Slide 2: Forward-looking statements 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 materially fr
Slide 3: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS Q1 2021 REVENUE 2021 PRIORITIES Q&A PuBLICIS
Slide 4: Return to growth in Q1
RETURN TO GROWTH IN Q!1 IN A STILL CHALLENGING ENVIRONMENT MIXED Q1 BUSINESS ENVIRONMENT ° Improved economic prospects ° Rising vaccination rates * Government stimulus plans * Continued major health issues, risk of further economic and social impact Q1 GROUPE ORGANIC GROWTH AT +2.8% Sequential impro
Slide 5: Positive U.S. operations for the 2nd consecutive quarter
POSITIVE U.S OPERATIONS FOR THE 2%2 CONSECUTIVE QUARTER Capturing the shift in client investment towards digital channels, e-commerce and Direct-to-Consumer ¢ Publicis Sapient organic growth at +11.2% U.S. organic growth of P 9 9 ° +5.1% in Q1, thanks to ¢ Epsilon up for the 24 quarter in a row, at
Slide 6: Asia and Europe start to recover
ASIA AND EUROPE START TO RECOVER * Sequential improvement, slightly down at -1.8% * +2.8% excluding the impact of MediaTransports and the Drugstore Europe * France and Germany returning to growth, at respectively +4.9% and +6.0% * -3.4% organic growth in the UK, impacted by lockdowns in Q1 * Qlorgan
Slide 7: Continued good momentum in new business in Q1
CONTINUED GOOD MOMENTUM IN NEW BUSINESS IN Q1 ov ® INFINITI. TOYOTA Creative Shopper marketing Media & Creative Media Global US. Australia US. LOREAL eo INSPIRE SNCF] ABInBev & @ = aS Media Data AOR Media Creative China US. US. France
Slide 8: Q1 2021 Revenue
Q1 2021 HIGHLIGHTS Q1 2021 RESULTS 2021 PRIORITIES Q&A PuBLICIS
Slide 9: Net revenue
NET REVENUE (EUR million) Ql 2021 net revenue 2,392 2020 net revenue 2,481 Reported growth -3.6% Organic growth +2.8% PUBLICIS GROUPE 8
Slide 10: Q1 2021 net revenue by geography
Q1 2021 NET REVENUE BY GEOGRAPHY (EUR million) Q1 2021 Q1 2020 2021 vs. 2020 Organic growth North America 1,505 Europe 561 Asia Pacific 217 Latin America 47 Total 2,392 1,555 578 219 54 2,481 Middle East Africa 62 75 -3.2% -2.9% 0. 9% “7. 3% 3. 0% -3. 6% +4.7% -1.8%™ +5. ve mn 0% — T79% — S a _ PUBL
Slide 11: Q1 2021 performance - North America
PUBLICIS GROUPE Q1 2021 PERFORMANCE - NORTH AMERICA 2021 Organic (EUR million) Q1 2021 Q1 2020 vs. 2020 growth North America 1,505 1,555 -3.2% +4.7% US * 60% of Groupe net revenue * Organic growth: +5.1% * Media up by mid-single digit, with double-digit growth in digital media, traditional media fla
Slide 12: Q1 2021 performance - Europe
Q1 2021 PERFORMANCE - EUROPE 2021 Organic (EUR million) Q1 2021 Q1 2020 vs. 2020 growth Europe 561 578 -2.9% 1.8% UK France Germany + 8% of Groupe net revenue + 5% of Groupe net revenue + 3% of Groupe net revenue * Organic growth: -3.4% * Organic growth: -14.6% * Organic growth: +6.0% + +4.9% exclud
Slide 13: Q1 2021 performance - Rest of World
GROUPE Q1 2021 PERFORMANCE - REST OF WORLD 2021 Organic (EUR million) Q1 2021 Q1 2020 vs. 2020 growth Asia Pacific 217 219 -0.9% +5.7% Middle East Africa 62 75 -17.3% -11.0% Latin America 47 54 -13.0% +7.7% Asia Pacific 9% of Groupe net revenue Organic growth: +5.7% Media growing thanks to China, In
Slide 14: Q1 2021 performance by industry
Q1 2021 PERFORMANCE BY INDUSTRY Net revenue growth per client Net revenue split P industry“ Leisure Public sector & travel & Other Energy& 550, +3% Automotive manufacturing +0% -7% Retail +5% 4% Non-food : , Financial consumer products +2% +1% ° Food & beverage 2,984 main clients representing 92% of
Slide 15: Net financial debt
NET FINANCIAL DEBT (EUR million) Q1 2021 FY 2020 Q12020 FY 2019 Net Financial Debt, average 1,497 3,286 3,486 2,375 Net Financial Debt, at end of period 1,866 833 4,094 2,713 PUBLICIS GROUPE 14
Slide 16: Liquidity as of March 31, 2021
PUBLICIS GROUPE LIQUIDITY AS OF MARCH 31, 2021 March 31, 2021 March 31, 2020 (EUR million) Total Drawn ____ Available Available 364-day revolving credit facilities 165 165 165 5-year revolving credit facility 443 443 468 5-year syndicated facility (Club Deal) 2,000 2,000 - Total Committed Facilities
Slide 17: 2021 Priorities
Q1 2021 HIGHLIGHTS Q1 2021 RESULTS 2021 PRIORITIES Q&A PuBLICIS
Slide 18: Priorities for the rest of the year
3 PRIORITIES FOR THE REST OF THE YEAR OUR PEOPLE OUR CLIENTS OUR PRODUCT GROUPE 47
Slide 19: Our people
OUR PEOPLE ORGANIZING TO COME BACK TO THE OFFICE IN H2 2021 A SAFETY FIRST APPROACH Offices to open only when we can be sure of meeting or surpassing local health regulations A SWIFT, FLUID PROCESS We plan to be as effective coming back to the office as we were and shifting to WFH - facilitated by M
Slide 20: Be their preferred partner in their transformation
BE THEIR PREFERRED PARTNER IN THEIR TRANSFORMATION WHEN MANY ARE High level of new business activity to come, more offensive than defensive After a good Q1, opportunity to continue to leverage our model and maintain momentum PUBLICIS GROUPE Continue to simplify our structures to maintain agility and
Slide 21: Our product
(ib Biiy, ji By, OUR PRODUCT AFFIRM OUR PRODUCT LEADERSHIP IN THE ACCELERATION OF PERSONALIZATION AT SCALE ADVANCED TV COMMERCE ID RESOLUTION Oublicis razorfish
Slide 22: Epsilon next-generation personalized media platform
2%: PSILON: EPSILON © theTradeDesk NEXT-GENERATION |. = PERSONALIZED MEDIA PLATFORM CORE ID: 250M TRANSACTION-VERIFIED OMSIES. toe. Ss PROFILES , Em PUBLICIS GROUPE
Slide 23: Conclusion & outlook
CONCLUSION & OUTLOOK Better-than-expected Q1 performance Q2 recovery ratio expected between 60% to 80% (organic growth of 8% to 10%) Crisis far from being over Still low visibility on the rest of the year Confident in delivering on 2021 margin and cash objectives While investing in future growth PUB
Slide 24: Q&A
Q1 2021 HIGHLIGHTS Q1 2021 RESULTS 2021 PRIORITIES Q&A PuBLICIS
Slide 25: Appendix
APPENDIX PuBLICIS
Slide 26: Net revenue & organic growth calculation
NET REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Ql 2021 Currency impact 2020 net revenue 2,481 . (EUR million) Ql Currency impact 2 (151) 2020 net revenue at 2021 exchange rate (a) 2,330 GBP (2) ses USD 2 (122) 2021 net revenue before _ Other (27) Net revenue from acquisitions® Total (151) 20
Slide 27: Gross debt as of March 31, 2021
GROSS DEBT AS OF MARCH 31, 2021 Breakdown by maturity Apr.2021- Apr.2022- Apr.2023- Apr.2024- April 2025 (EUR million) Total March 2022 March 2023 March 2024 March 2025 Onwards Eurobond 2023 497 - - 497 - Eurobond 2024 602 - - - 602 Eurobond 2025 “) @) 747 - - - - 747 Eurobond 2031 () @) 720 - - - -
Slide 28: Debt as of March 31, 2021
DEBT AS OF MARCH 31, 2021 Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 2021 699 699 - - - Eurobond 2023 497 497 - - - Eurobond 2024 602 602 - - - Eurobond 2025 “) 2) 747 - 747 - - Eurobond 2028 “ @ 735 - 735 - - Eurobond 2031 a @) 720 - 720 - - Medium term loans “ fe) - - -
Slide 29: 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 30: Contact
CONTACT Press Delphine Stricker, Group Communications Director Tel. + 33 6 38 81 40 00 / Email. delphine.stricker licisgroupe.com Investor Relations Alessandra Girolami, Vice-President Investor Relations & Strategic Financial Planning Tel. + 33.144 43 77 88 / Email. alessandra.girolami@publicisgroup