Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Investor Day (March 2018)
41 slides from Publicis Groupe Sa's investor day presentation, Mar 20, 2018
Slide 1: Publicis Groupe Investor Day
PUBLICIS GROUPE INVESTOR DAY London | March 20th, 2018
Slide 2: Bonjour, Bienvenue, Merci
BONJOUR BIENVENUE MERCI
Slide 3: How we are approaching this day?
HOW WE ARE APPROACHING THIS DAY? 3
Slide 4: … with some nerves …
… with some nerves …
Slide 5: Because our industry is being challenged
“Tougher environment for ad agencies” “Suffer from low growth for core clients and the of zero- based budgeting tactics ” “Investor concerns on their relevance in the marketing value chain.” “Advertisers are challenging the legacy AOR model” BECAUSE OUR INDUSTRY IS BEING CHALLENGED “The vast majorit
Slide 6: Today's purpose: show our reality
TODAY’S PURPOSE SHOW OUR REALITY
Slide 7: The assets we have
WE HAVE THE ASSETS
Slide 8: We have the vision
WE HAVE THE VISION TO BE THE MARKET LEADER IN MARKETING & BUSINESS TRANSFORMATION
Slide 9: The organisation we have
WE HAVE THE ORGANISATION
Slide 10: We have a future-facing management team
WE HAVE A FUTURE-FACING MANAGEMENT TEAM
Slide 11: To shift from a communications partner to a transformation partner
TO SHIFT FROM A TO A COMMUNICATIONS TRANSFORMATION PARTNER PARTNER
Slide 12: And turn our industry challenges into opportunities
AND TURN OUR INDUSTRY CHALLENGES INTO OPPORTUNITIES 12
Slide 13: To deliver
TO DELIVER ACCELERATED IMPROVED EPS ORGANIC GROWTH MARGIN EXPANSION GROWTH & HIGHER TO REACH + 30-50bps/year DIVIDEND +4% in 2020
Slide 14: Sprint to the future
SPRINT TO THE FUTURE A SPRINT TO DELIVER WHAT WILL MAKE OUR CLIENTS WIN IN THE FUTURE
Slide 15: Now let's start at the end
NOW LET’S START AT THE END 15
Slide 16: What we would like you to take away
WHAT WE WOULD LIKE YOU TO TAKE AWAY
Slide 17: Our offer is exactly what our clients need to win in the future
OUR OFFER IS EXACTLY WHAT OUR CLIENTS NEED TO WIN IN THE FUTURE 17
Slide 18: One-to-one consumer engagement at scale
ONE-TO-ONE CONSUMER ENGAGEMENT AT SCALE CREATING PERSONALISED RELATIONSHIPS TO DELIVER: The right To the right At the right Through the At every point En masse message person time right of the channel consumer journey
Slide 19: It's what our clients want today
IT’S WHAT OUR CLIENTS WANT TODAY ONE-TO-ONE CONSUMER ENGAGEMENT AT SCALE Mass one-to-one marketing is coming. We have 5 million members and our engagement with each one, wherever and whenever they want, is resulting in Marc Pritchard, Global Marketing and Brand Building Officer, P&G higher sales Fra
Slide 20: We have three strategic game-changers to deliver it
WE HAVE THREE STRATEGIC GAME-CHANGERS TO DELIVER IT TECHNOLOGY & DATA CONTENT CONSULTING
Slide 21: Publicis PeopleCloud
WE WE KNOW HOW MAKETHREE TOHAVE STRATEGIC CONSUMER ENGAGEMENT RIGHT: PUBLICIS GAME PEOPLECLOUD CHANGERS TO DELIVER IT TECHNOLOGY & DATA CONTENT CONSULTING 21
Slide 22: Dynamic Creativity
WE KNOW HOWWE MAKE THREE TOHAVE STRATEGIC CONSUMER ENGAGEMENT MAGIC: DYNAMIC GAME CREATIVITY CHANGERS TO DELIVER IT DATA: TECHNOLOGY & PUBLICIS CONTENT CONSULTING PEOPLECLOUD 22
Slide 23: Digital Business Transformation
WE WE KNOW HOW MAKETHREE TOHAVE STRATEGIC CONSUMER ENGAGEMENT WORK: DIGITAL GAMEBUSINESS CHANGERSTRANSFORMATION TO DELIVER IT D ATA EXPERIENCE DATA AT RADICAL CUSTOMER- THE CORE DATA: DBT CONTENT: CENTRICITY PUBLICIS DYNAMIC TECHNOLOGY & PEOPLECLOUD CREATIVITY CONSULTING TECHNOLOGY THE CONNECTED DIG
Slide 24: We have the organisation to connect them and accelerate transformation
WE HAVE THE ORGANISATION TO CONNECT THEM & ACCELERATE THE TRANSFORMATION OF OUR CLIENTS
Slide 25: Extract from the pack
EXTRACT FROM THE PACK TECHNOLOGY DATA CONTENT & CONSULTING PUBLICIS GROUPE TECH COMPANIES AD AGENCIES CONSULTING FIRMS Brand Safety Cultural Barriers Transparency
Slide 26: They put us at the core of our clients' needs
EVEN MORE IMPORTANTLY THEY PUT US AT THE CORE OF OUR CLIENTS’ NEEDS AND TRANSFORM OUR RELATIONSHIP
Slide 27: And accelerate our future growth
AND ACCELERATE OUR FUTURE GROWTH
Slide 28: We are on a sprint to accelerate our transformation
WE ARE ON A SPRINT TO ACCELERATE OUR TRANSFORMATION
Slide 29: Through 6 concrete actions
1Tfl\\ \ i \ \ THROUGH 6 CONCRETE ACTIONS —— W]/) / )
Slide 30: Putting our clients at the center
1. PUTTING OUR CLIENTS AT THE CENTER UNDER: 1 1 1 LEADERSHIP P&L ROOF Today 2020 35 Global Client Leaders 100 Global Client Leaders 1/3 of our revenue 50% of our revenue
Slide 31: Breaking the silos at the country level
2. BREAKING THE SILOS AT THE COUNTRY LEVEL 1 1 1 1 COUNTRY WAY TO GO COMEX P&L LEADER TO MARKET Today 2020 36 % of revenue France, UK, Italy, 100% of revenue APAC, DACH, Africa, Publicis One
Slide 32: Scaling our strategic game changers
3. SCALING OUR STRATEGIC GAME CHANGERS DYNAMIC DIGITAL BUSINESS DATA CREATIVE TRANSFORMATION 3,500 experts under one Create 6 Centres of Organise our capabilities platform Excellence into Industry Practices Today 2020 Revenue contribution Revenue contribution on top 100 clients: 30% on top 100 clien
Slide 33: Building one delivery model
4. BUILDING ONE DELIVERY MODEL India Colombia Costa Rica Mauritius Technology Technology Cloud/Dev ops Analytics Data/Analytics/AI Print & Digital Production Print & Digital Production HEADCOUNT 8,000 700 Today 2020 HC: 8,700 HC: 13,000
Slide 34: Reinventing the way we work through Marcel
5. REINVENTING THE WAY WE WORK THROUGH MARCEL Connecting our 80,000 employees to learn more, share more and create more First public presentation 24th May 2018 at Viva Tech Today 2020 90% of our people Building the foundations fully connected
Slide 35: Investing in our future
6. INVESTING IN OUR FUTURE INVESTMENTS OVER 2018 - 2020 Bolt-on acquisitions: TALENTS : € 300m CAPEX : € 100m €300m - €500m per year Data specialists, data scientists Marcel Data Consulting Talent Publicis People Cloud Dynamic Creativity Dynamic Creative Content Talent Automation Digital Business Tr
Slide 36: We will deliver greater shareholder value while we transform
WE WILL DELIVER GREATER SHAREHOLDER VALUE WHILE WE TRANSFORM
Slide 37: Our addressable market
OUR ADDRESSABLE MARKET DATA DIGITAL BUSINESS ADVERTISING $100 billion $600 billion TRANSFORMATION $400 billion
Slide 38: Accelerated organic growth to reach +4% in 2020
ORGANIC GROWTH ACCELERATED ORGANIC GROWTH TO REACH +4% IN 2020 + € 650m direct revenue from our Strategic Game Changers + € 600m from cross-selling and new business - € 350m attrition on mature business + € 900m INCREMENTAL REVENUE BY 2020
Slide 39: Margin improvement of 30 to 50 bps per year
MARGIN MARGIN IMPROVEMENT OF 30 TO 50 BPS PER YEAR Rightsizing mature business € 200m Capacity and planning € 50m G&A excl. real estate € 130m Real estate € 70m ACHIEVE € 450m OF COST REDUCTION BY 2020
Slide 40: Greater shareholder return
GREATER SHAREHOLDER RETURN ACCELERATED 5-10% HIGHER DIVIDEND EPS GROWTH WITH PAYOUT RATIO PER YEAR circa. 45% FROM 2018-2020
Slide 41: Sprint to the future
SPRINT TO THE FUTURE BE OUR CLIENTS’ INDISPENSABLE PARTNER IN THEIR TRANSFORMATION SHIFT FROM A HOLDING COMPANY TO A PLATFORM LEAD THE PACK IN TERMS OF FINANCIAL PERFORMANCE