Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Q1 2016 Earnings Presentation
40 slides from Publicis Groupe Sa's earnings presentation, Apr 19, 2016
Slide 1: Q1 Revenue 2016
Q1 REVENUE 2016 April 19, 2016
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: Q1 Revenue
Q1 REVENUE (EUR million) Q1 2016 REVENUE 2,291 2015 REVENUE 2,103 Reported growth +8.9% Growth excluding FX +10.0% Organic growth +2.9% 3
Slide 4: Q1 2016 Revenue by Geography
Q1 2016 REVENUE BY GEOGRAPHY Organic Q1 2016 (EUR million) Q1 2016 Q1 2015 growth vs. Q1 2015 Europe 631 588 +3.4% +7.3% North America 1,301 1,152 +3.0% +12.9% Asia Pacific 230 221 +3.8% +4.1% Latin America 71 90 -3.1% -21.1% Middle East Africa 58 52 +0.7% +11.5% Total 2,291 2,103 +2.9% +8.9% 4
Slide 5: Q1 2016 Organic Growth by Country
Q1 2016 ORGANIC GROWTH BY COUNTRY Chile, Colombia, Germany, India, Italy, Japan, > 5% Netherlands, Philippines, Russia, South Africa, Thailand, Turkey, United Arab Emirates, Vietnam Australia, France, Greater China, Indonesia, Korea, Malaysia, 0 to 5% Poland, Singapore, Spain, Sweden, Switzerland, U
Slide 6: Digital Revenue
DIGITAL REVENUE Q1 2016 Q1 2016 Q1 2015 vs. Q1 2015 EUR million 1,255 1,056 +18.8% % of Groupe revenue 54.8% 50.2% Q1 2016 organic growth: +7.6% 6
Slide 7: Q1 2016 Organic Growth
Q1 2016 ORGANIC GROWTH North Latin Middle East Europe Asia Pacific Total America America Africa Digital +13.0% +4.3% +21.0% +14.4% +13.2% +7.6% Analog -3.9% +0.9% -3.9% -7.5% -2.8% -1.9% Total +3.4% +3.0% +3.8% -3.1% +0.7% +2.9% % of Digital 49% 64% 38% 24% 22% 55% revenue 7
Slide 8: Net Debt / (Net Cash)
NET DEBT / (NET CASH) (EUR million) Q1 2016 Q1 2015 Q1 2014 Net Debt / (Net Cash), average 2,092 776 (300) Net Debt / (Net Cash), as of March 31 2,864 2,966 29 8
Slide 9: Liquidity as of March 31, 2016
LIQUIDITY AS OF MARCH 31, 2016 (EUR million) TOTAL DRAWN AVAILABLE Committed Facilities 364-day revolving credit facilities 205 - 205 5-year revolving credit facility (1) 517 - 517 5-year syndicated facility (Club Deal) (2) 2,000 - 2,000 Total Committed Facilities 2,722 - 2,722 Cash and Marketable S
Slide 10: Strategic Update
STRATEGIC UPDATE ad
Slide 11: The World We Live In
THE WORLD WE LIVE IN We are at the beginning of the most transformative revolution ever Industry 4.0 Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 Steam Electricity Electronics Connectivity Source: “The Fourth Industrial Revolution”, Professor Klaus Schwab 11
Slide 12: Two Giant Forces
TWO GIANT FORCES CONSUMER CONVERGENCE EMPOWERMENT Clients need to transform their business and operations 12
Slide 13: Clients' Needs
CLIENTS’ NEEDS They want us to be a trusted and strategic business TRANSFORMATION partner to help them transform their own business To be competitive in terms of brand building & sales, they COMPETITIVITY want to access the best assets, simply and seamlessly PRODUCTIVITY Price pressure is steep and
Slide 14: Change Commands a Shift in How Companies Behave
CHANGE COMMANDS A SHIFT IN HOW COMPANIES BEHAVE +|– +|+ CIO Success = where Tech and Marketing skills intersect Tech Capability CMO –|– –|+ Marketing Capability 14
Slide 15: Our Ambition: To Be a Key Transformation Partner
OUR AMBITION: TO BE A KEY TRANSFORMATION PARTNER +|– +|+ IT integrators A strategic partner to help our clients succeed their Tech Consulting own transformation Capability Advertising holding companies –|– –|+ Marketing Capability 15
Slide 16: 4.0 Companies
4.0 COMPANIES Uber AirBnB Growing and thriving Technology Facebook Modular Amazon Platforms companies are built as platforms, using data to Spotify Fused Innovation Connected Experience Netflix drive everything PayPal WeChat 16
Slide 17: Creativity is Publicis Groupe's DNA
CREATIVITY IS PUBLICIS GROUPE’S DNA 17
Slide 18: Our Digital Global Agencies Best Positioned
OUR DIGITAL GLOBAL AGENCIES BEST POSITIONED Razorfish Sapient Nitro MRM/McCann AKQA IBM Interactive Deloitte Digital Experience R/GA Wunderman DigitasLBi Publicis.Sapient gathers Isobar OgilvyOne WW PwC Digital Services FCB iCrossing best-in-class digital marketing Havas WW VML Accenture Interactive
Slide 19: The Fusion of Marketing and Technology Unleashes Extraordinary Creative Potential
THE FUSION OF MARKETING AND TECHNOLOGY UNLEASHES EXTRAORDINARY CREATIVE POTENTIAL Personalization Brands Storytelling Interactive Mobile Technology Passions Creativity Emotions Sustain- ability On- Context Demand Creativity/ Value Innovation 19
Slide 20: The End of Advertising as We Know It
“THE END OF ADVERTISING AS WE KNOW IT” (1) From To 4.0 Holding Company Connecting Company (1) Source: Sergio Zyman & Armin Brott 20
Slide 21: Our 4.0 Approach for Clients
OUR 4.0 APPROACH FOR CLIENTS ONE ALCHEMY MODULAR Accessible & agile Creativity & technology New organizational structure 21
Slide 22: The Power of One
THE POWER OF ONE PUBLICIS PUBLICIS COMMUNICATIONS MEDIA 4.0 Sapient Inside CLIENT PUBLICIS.SAPIENT PUBLICIS HEALTH PUBLICIS ONE RE:SOURCES 22
Slide 23: The Power of One Implementation
“THE POWER OF ONE” IMPLEMENTATION PUBLICIS PUBLICIS.SAPIENT PUBLICIS PUBLICIS COMMUNICATIONS MEDIA HEALTH - Organization - Organization - Organization - Organization - Roles / Nominations - Roles / Nominations - Roles / Nominations - Roles / Nominations - Processes WIP - Processes
Slide 24: Conclusion
CONCLUSION ad
Slide 25: Top Priorities
TOP PRIORITIES Finalize the transformation in H1 2016 Resume growth Increase margin 25
Slide 26: 2016 Outlook
2016 OUTLOOK Unchanged 26
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Slide 28: Appendices
APPENDICES ad
Slide 29: Q1 2016 Revenue in USD Million
Q1 2016 REVENUE IN USD MILLION Revenue 2,527 2,366 +6.8% Q1 2016 Q1 2015 29
Slide 30: Q1 2016: Revenue by Activity
Q1 2016: REVENUE BY ACTIVITY Analog & Digital Media = 23% 11% Media SAMS 12% in 2015 13% 14% in 2015 55% 50% in 2015 Digital 21% 24% in 2015 Advertising 30
Slide 31: Q1 2016: Revenue by Sector
Q1 2016: REVENUE BY SECTOR (1) Q1 2016 Q1 2015 Retail Retail Other Non Food consumer products Other Non Food consumer products 6 Leisure/Energy/Luxury 6 5 16 Leisure/Energy/Luxury 7 15 7 7 Financial 14 12 14 Healthcare Food and beverage 11 TMT 13 14 13 14 Healthcare 13 Automotive TMT 13 Food and bev
Slide 32: Q1 2016 Revenue by Sector: Analog vs. Digital
Q1 2016 REVENUE BY SECTOR (1) : ANALOG VS. DIGITAL 25% 29% 37% 36% 42% 59% 64% 62% 75% 71% 63% 64% 58% 41% 36% 38% Non Food consumer Food and beverage TMT Automotive Retail Healthcare Financial Leisure/Energy/Luxury products Digital Analog (1) Based on 2,603 clients representing 84% of Groupe revenu
Slide 33: Revenue & Organic Growth Calculation
REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Q1 Currency impact (EUR million) 2015 revenue 2,103 Q1 2016 Currency impact (20) GBP (7) 2015 revenue at 2016 exchange rate (a) 2,083 USD 23 Other (36) 2016 revenue before impact of acquisitions (1) (b) 2,144 Total (20) Revenue from acquisitions (1)
Slide 34: Q1 2016 Revenue by Geography (Alternative Breakdown)
Q1 2016 REVENUE BY GEOGRAPHY (ALTERNATIVE BREAKDOWN) Reported Organic (EUR million) Q1 2016 Q1 2015 growth growth Europe (1) 618 575 +7.5% +3.2% North America 1,301 1,152 +12.9% +3.0% BRIC + MISSAT (2) 205 215 -4.7% +1.4% Rest of the world 167 161 +3.7% +3.3% Total 2,291 2,103 +8.9% +2.9% (1) Europe
Slide 35: Gross Debt as of March 31, 2016
GROSS DEBT AS OF MARCH 31, 2016 Breakdown by MATURITY Apr. 2016 – Apr. 2017 – Apr. 2018 – Apr. 2019 – Apr. 2020 (EUR million) Total Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 onwards Eurobond 2021 (1) 763 763 Eurobond 2024 (1) 638 638 Medium term loan 1,414 471 471 472 Earn out / Buy out 447 265 96 54
Slide 36: Net Debt as of March 31, 2016 by Currency
NET DEBT AS OF MARCH 31, 2016 Breakdown by CURRENCY (EUR million) Total EURO USD GBP Others Eurobond 2021 (1) (2) 763 763 Eurobond 2024 (1) (2) 638 638 Medium term loan 1,414 446 968 Earn out / Buy out 447 61 161 78 147 Other debt (1) 278 (13) 321 15 (45) Cash & marketable securities (3) (676) (37)
Slide 37: Net Debt as of March 31, 2016 by Rate
NET DEBT AS OF MARCH 31, 2016 Breakdown by RATE Earn-out / Fixed Floating (EUR million) Total Buy-out rate rate Eurobond 2021 (1) (2) 763 763 Eurobond 2024 (1) (3) 638 638 Medium term loan 1,414 1,414 Other debt (1) 278 94 184 Total gross debt excluding earn out/buy out 3,093 1,495 1,598 Earn-out /
Slide 38: Definitions
DEFINITIONS • EBITDA: operating margin before depreciation • Operating margin: Revenue after personnel costs, other operating expenses (excl. non-current income and expense) and depreciation (excl. amortization of intangibles arising on acquisitions). • Operating margin rate: Operating margin as a p
Slide 39: Contacts
CONTACTS • Press Peggy Nahmany, Vice-President, Director of Communications Tel. +33 1 44 43 72 83 Email. peggy.nahmany@publicisgroupe.com • Investor Relations Jean-Michel Bonamy, Vice-President Investor Relations & Strategic Financial Planning Tel. +33 1 44 43 77 88 Email. jean-michel.bonamy@publici
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