Havas Nv · EURONEXT:HAVAS
Havas Nv — Investor Day (November 2024)
150 slides from Havas Nv's investor day presentation, Nov 19, 2024
Slide 1: Powered by Humans, Supercharged by Data, Tech and AI
POWERED BY HUMANS SUPERCHARGED BY DATA, TECH AND AI Capital Markets Day November 19, 2024
Slide 2: Disclaimer (1/2)
DISCLAIMER (1/2) IMPORTANT LEGAL INFORMATION This presentation is an advertisement prepared by Havas B.V., private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) governed by the laws of the Netherlands to be converted into a public limited liability company (naamloz
Slide 3: Disclaimer (2/2)
DISCLAIMER (2/2) KEY RISK FACTORS FOR CONSIDERATION The following is a selection of the key risks that relate to Havas’ industry and business, operations, financial condition, and prospects, the Vivendi Spin-Off, and any investment into Havas ordinary shares, based on the probability of their occurr
Slide 4: Agenda
AGENDA 01 02 03 04 HAVAS TODAY AND OUR THE POWER OF HEALTH: A GROWTH MEDIA'S TRANSFORMATION CONVERGED STRATEGY CREATIVITY STORY JOURNEY AHEAD Donna Murphy, Global Donna Murphy, Yannick Bolloré, Chairman CEO Havas Creative Global CEO Havas Health Peter Mears, Global CEO and CEO Network Network Havas
Slide 5: Havas Today and Our Converged Strategy Ahead
HAVAS TODAY AND OUR CONVERGED STRATEGY AHEAD Yannick Bolloré, Chairman and CEO
Slide 6: Havas is one of the largest communications & marketing groups with a global presence
1 HAVAS IS ONE OF THE LARGEST COMMUNICATIONS & MARKETING GROUPS WITH A GLOBAL PRESENCE… Since 1835 23,000 People (year-end 2023) Operates in 100+ Markets €2.7bn 2023 Net Revenue* €327m 2023 Adjusted EBIT* 12.1% 2023 Adjusted EBIT Margin* - Investor Presentation * This measure is con side red to be a
Slide 7: Mastering the entire spectrum of communication expertise
2 MASTERING THE ENTIRE SPECTRUM PROV IDING A W IDE RANGE O F COM M UNIC AT ION AND M ARKE TING S ERVICE S OF COMMUNICATION EXPERTISE MEDIA ADVERTISING CUSTOMER CONSULTING, AUDIENCE & FAN DATA BRAND STRATEGY CHANNEL CREATION EXPERIENCE INVESTMENT & ENGAGEMENT ANALYTICS & DESIGN OPTIMIZATION Havas str
Slide 8: A diversified and balanced business
3 WITH A DIVERSIFIED AND BALANCED BUSINESS 2023 Net Revenue* breakdown (in %) Havas Creative LATAM Automotive Retail 39 7 o/w UK 5 Healthcare & APAC & MEA Travel & 5 Havas Health 15 entertainment Wellness 9 Europe 6 31 24 48 Industries & Services o/w France 7 17 BY BY BY BUSINESS LINES GEOGRAPHIES F
Slide 9: Serving a broad base of clients since decades
4 SERVING A BROAD BASE OF CLIENTS SINCE DECADES & 4,000+ more - Investor Presentation 9
Slide 10: A highly recognized group with multiple awards across all business lines
5 A HIGHLY RECOGNIZED GROUP WITH MULTIPLE AWARDS ACROSS ALL CREAT IVE HEALTH M EDIA BUSINESS LINES 25 Awards Top 3 1 Grand Prix, won at Cannes Lions in 2024 Healthcare Agency 5 Gold awards +32% vs. 2023 of the year at Cannes Lions 1 Silver award won 2024 RANKINGS 2024 RANKINGS Top 6 Media Agency Net
Slide 11: An experienced management team supported by a long-term shareholder
6 AN EXPERIENCED MANAGEMENT TEAM Yannick BOLLORÉ Raphaël DE ANDRÉIS Stéphanie BERTRAND -TASSILLY SUPPORTED BY A LONG- Chairman CEO, France & Italy Global Chief & CEO, Havas CSR Officer TERM SHAREHOLDER Chairman of the Chairman, Havas Creative Germany, 2011 Supervisory Board, 1996 Portugal & Spain 20
Slide 12: The Havas family: a powerful culture
7 THE HAVAS FAMILY: A POWERFUL CULTURE GATHERING HIGHLY TALENTED AND CREATIVE PROFESSIONALS... - Investor Presentation 12
Slide 13: United by a common mission
…AND UNITED BY A COMMON MISSION Make a Meaningful Difference to Brands, Businesses, & People - Investor Presentation 13
Slide 14: With a deeply engrained CSR strategy
8 WITH A DEEPLY ENGRAINED CSR STRATEGY... An integrated network of global and regional CSR experts around 3 pillars: People Environment Responsible communications Creating a culture where diverse voices are encouraged Embarking in an ambitious decarbonization and respected trajectory aligned with th
Slide 15: Havas: an ideal business partner
HAVAS AN IDEAL BUSINESS PARTNER
Slide 16: Havas is ideally positioned to serve the fastest growing segments
HAVAS IS IDEALLY POSITIONED TO SERVE THE FASTEST GROWING SEGMENTS IN THE INDUSTRY HOW IS HAVAS ADDRESSING Global Media Ad Spend Market (2024)(1) MARTECH CURRENT MARKET TRENDS Split By Region 2024 NEW TECHNOLOGIES INCREASING $755B 4.2% MARKETING PRECISION, EFFICIENCY AND SPOPHISTICATION CAGR 2024-26
Slide 17: Our clients need us more than ever
OUR CLIENTS NEED US MORE THAN EVER Digitalization of Ad Clients expect agencies & Marketing spend expedite to become critical partners the development of in their journey, providing emerging technologies end-to-end capabilities Proliferation Customers' needs & wants of digital platforms Market Clien
Slide 18: Fully integrated and agile model: the power of Havas Villages
1 THANKS TO A FULLY INTEGRATED AND AGILE MODEL: THE POWER Benefits to: OF HAVAS VILLAGES HAVAS GROUP CLIENTS TALENTS & AGENCIES Simplification Increase cross-fertilization Internal & geographic 71 of client interactions between teams and agencies mobility Access to a broader range of Foster cultural
Slide 19: A client-centric offering driving growth across networks and geographies
1 A CLIENT-CENTRIC OFFERING DRIVING GROWTH ACROSS ALL OUR NETWORKS AND GEOGRAPHIES OUR T OP 30 CLIE NTS G ENERAT E REV ENUE ACROS S … WIT H 9 3% OF T HEM ACROSS M ULT IPL E GEOGR APHIES … AT L EAS T 2 OF OUR BUSINE SS L INES Breakdown of Havas Geographies engaged by our Breakdown of Havas Business L
Slide 20: A client perspective: Paul Hudson, Sanofi CEO
2 OFFERING SERVICES THAT CONTRIBUTE POSITIVELY TO OUR CLIENTS' BUSINESSES A CLIENT PERSPECTIVE PAUL HUDSON, SANOFI CEO #2 - Investor Presentation 20
Slide 21: Developing innovative solutions to anticipate clients needs
3 DEVELOPING INNOVATIVE SOLUTIONS TO ANTICIPATE CLIENTS NEEDS LAUNCH OF INNOVATIVE SOLUTIONS Entertainment Leverage communities’ passions, interests and hobbies for brand loyalty CX, digital transformation, design and customer Customer Experience acquisition and engagement expertise Creation, digita
Slide 22: Establishing future-forward data, tech & AI capabilities
4 ESTABLISHING FUTURE-FORWARD DATA, TECH & AI CAPABILITIES OVER THE PAST DECADE R&D AND TECHNOLOGY & MAJOR INVESTMENTS KEY PARTNERSHIPS ACQUISITIONS DATA Optimizing and streamlining each major phase of the design, creation, production and delivery of services, achieving internal efficiency Explore u
Slide 23: Our M&A Strategy
HAVAS Our M&A Strategy
Slide 24: Recent record years in M&A
5 RECENT RECORD YEARS IN M&A (2022-2024) January 2024 Sept ember 2022 September 2024 September 2022 September 2022 February 2022 LEDGER SEARCH July 2023 March 2024 DMPG EXPERT EDGE ADDITIVE INVIQA BENNETT LABORATORY UNCOMMON WILDERNESS UK UK UK UK UK UK UK UK April 2023 NOISE DIGITAL January 2023 CA
Slide 25: Truly differentiated M&A mindset contributing to proven track record
5 TRULY DIFFERENTIATED M&A MINDSET CONTRIBUTING TO PROVEN M&A TRACK RECORD FUELING A VIRTUOUS CIRCLE A CLEAR STRATEGY Identification of priority targets aligned with Geography strategy Reinforce existing presence Expand geographic coverage and in core countries penetrate accretive geographies Havas
Slide 26: Experienced, dedicated and coordinated teams for M&A execution
5 EXPERIENCED, DEDICATED AND COORDINATED TEAMS SAFEGUARDING A SMOOTH EXECUTION OF M&A STRATEGY Experienced M&A Team with Global Presence Systematic and Collaborative Approach to Pipeline Development Complementary Approach to M&A Opportunities Regional & Divisional Group M&A Division Management “Oper
Slide 27: M&A: a driving force of Havas's success
5 M&A: A DRIVING FORCE OF HAVAS’S SUCCESS Consolidating YTD 2017 2018 2019 2020 2021 2022 2023 Fragmented Market 2024 ~1.5%(1) of acquired net revenue in average per year* ~5-10(1) acquired companies on average per year ~50 companies acquired since 2017 ~€40m of acquired net revenue per year since 2
Slide 28: Abilities proven in the past: case studies of flagship deals
5 ABILITIES PROVEN IN THE PAST: CASE STUDIES OF FLAGSHIP DEALS Digital media agency (performance marketing, Creative studio agency with Digital/CX and business Business media buying and planning, SEO, etc..) with CX capabilities transformation consultancy creative/tech capabilities Country UK (Londo
Slide 29: Unmatched M&A track-record in the industry
5 UNMATCHED M&A TRACK-RECORD IN THE INDUSTRY LEAD M&A BUYER amongst the advertising holding networks MOST ACTIVE ADVERTISING AGENCY & the strategic buyers over the last 5 years(1) #1 #1 Top ranked agency Top buyer 32 Across 13 Top Media Agency M&A Buyer in 2022 acquisitions(3) countries Top-ranked m
Slide 30: Converged: a future-forward strategy
CONVERGED: A FUTURE-FORWARD STRATEGY
Slide 31: Equal parts human & machine
EQUAL PARTS HUMAN & MACHINE Embracing efficiency and effectiveness, while never forgetting creative, strategic and operational excellence - Investor Presentation 31
Slide 32: The Converged strategy, bringing Havas to the next level
THE CONVERGED STRATEGY, BRINGING HAVAS TO THE NEXT LEVEL IN A CHANGING WORLD INVESTMENTS NEW ORGANIZATIONAL NEW OPE RATING ACCELERATION SET UP SYSTEM ACCELERATION Adopt an even more centrally led client structure INTELLIGENCE DESIGN €400 million Over 2024-2027(1) ACTIVATE MEASURE While preserving pr
Slide 33: Converged empowers our talents and drives value for our clients
CONVERGED EMPOWERS OUR TALENTS AND DRIVES VALUE FOR OUR CLIENTS OUR TALENTS OUR CLIENTS ✓ Enhanced personalization and customer relevance ✓ Streamlined Workflows and Productivity ✓ Enable scalable growth and expanded reach ✓ Access to Advanced Tools ✓ Meaningful business outcomes around the world ✓
Slide 34: Video: unauthorized copying prohibited
Unauthorized copying, reproduction, distribution or publishing of any content from this video is strictly prohibited.
Slide 35: The Power of Creativity
THE POWER OF CREATIVITY Donna Murphy, Global CEO, Havas Creative and Health Networks
Slide 36: Post Covid era: every brand is a health brand
POST COVID ERA: Every brand is a health brand One Havas: creative excellence in the core converging with the health network Donna Murphy WELL POSITIONED WITH ONE SINGLE GOVERNANCE Global CEO -Investor Investorpresentation presentation ACROSS THE TWO NETWORKS 36 Havas Creative Network and Havas Healt
Slide 37: Havas Creative provides visionary and enhanced creativity
THROUGH HAVAS CREATIVE, THE GROUPS PROVIDES VISIONARY AND ENHANCED CREATIVITY Selected KPIs 10,423 € €1.1bn 2 400+ People in YE 2023 2023 Net Revenue Clients Areas of Excellence Strategic Production of Advertising Creation Brand Strategy & Design Customer Experience Communication Events & Experience
Slide 38: Global Chief Music Officer
fy ta GLOBAL CHIEF MUSIC OFFICER, HA.
Slide 39: OGX social brand anthem
THE ANSWER: THE ASK: ‘OG WHO? OGX’ SOCIAL BRAND ANTHEM MAKE THE INTERNET SAY OGX’s NAME THE OUTCOME: A SOCIAL BOP THAT SMASHED ITS KPIS - Investor presentation 39
Slide 40: Attracting the best talents
ATTRACTING THE BEST TALENTS - Investor presentation 40
Slide 41: BETC #1 agency in the world
BETC #1 AGENCY IN THE WORLD “Being number one on The WARC Creative 100 is an incredible feat not to be taken for granted” HAVAS TAKES #1 Agency for creativity BETC Paris Stéphane Xiberras MAJORITY STAKE ON CREATIVE AGENCY President & CCO, BETC Paris UNCOMMON - Investor presentation 41
Slide 42: Uncommon Creative Studio
UNCOMMON CREATIVE STUDIO NATALIE GRAEME CO-FOUNDER UNCOMMON CREATIVE STUDIO - Investor presentation 42
Slide 43: Investor presentation
Investor presentation 43
Slide 44: H/Advisors: leading global strategic advisory group
3 H/ADVISORS IS A LEADING GLOBAL STRATEGIC ADVISORY GROUP FOR CROSS-BORDER COMMUNICATIONS, 2001 WITH BEST-IN-CLASS LOCAL EXPERTS year of foundation DATA DIGITAL DESIGN 19 Agencies network Financial PR Sustainability Transformation & ESG & Investor Litigation & Change 23+ relations Countries presence
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Slide 46: Potential for GLP-1 to be most significant health disruptor
GLP-1 ANALOGUES MARKET - Global, $Bn POTENTIAL 33% CAGR 2024-2032 FOR GLP-1* TO BE MOST 471.1 SIGNIFICANT HEALTH DISRUPTOR ACROSS HEALTH (RX) AND NON-HEALTH BUSINESS VERTICALS 37.4 47.4 2023 2024 2032 GLP-1’s unique market North America Europe Asia Pacific Latin America Middle East Africa entrance a
Slide 47: GLP1 revolution
GLP1 REVOLUTION - Investor presentation *Class of medications utilized to treat type 2 diabetes and obesity, 47 with therapeutic implications in various other diseases
Slide 48: Already engaging with key Havas clients and prospective clients
WE’RE ALREADY ENGAGING WITH KEY HAVAS CLIENTS AND PROSPECTIVE CLIENTS - Investor presentation 48
Slide 49: Havas Health: a growth story
3 HAVAS HEALTH: A GROWTH STORY
Slide 50: Havas Health, one of the world's leading health advertising organizations
HAVAS HEALTH, ONE OF THE WORLD’S LEADING HEALTH ADVERTISING & COMMUNICATIONS ORGANIZATIONS(1) Selected KPIs 3,598 70+ ~200 €0.7bn People in YE 2023(1) Countries(1) Clients(1) 2023 Net Revenue(1) Areas of Excellence Audience Engagement Channel Optimization Digital and Technology Content Production Sp
Slide 51: Havas Health global agencies
Havas Health Global Agencies Part of the Havas Health Network Part of the Havas Health Network Part of the Havas Health Network Part of the Havas Health Network Part of the Havas Health Network Part of the Havas Health Network Part of the Havas Health Network Part of the Havas Health Network Part of
Slide 52: Retaining and attracting the best talent
RETAINING THE BEST TALENT Donna Murphy Julie Monroid Shazzia Khan Global CEO Partner, Chief Knowledge Officer Partner, Chief Talent Donna Murphy and her team built Havas & Innovation Officer Health Network into one of the largest Julie built and commercialized Shazzia is a Board member for health-an
Slide 53: Havas Health has won ambitious global new businesses
HAVAS HEALTH HAS WON AMBITIOUS GLOBAL NEW BUSINESSES The solid relationship with key global clients demonstrates the positioning of Havas as a leader in this field setting industry credibility 2023 Unparalleled Expertise in Consolidations 2022 Our consolidation approach has led to exceptional growth
Slide 54: Supported by an established Havas core team that ensures consistent growth
SUPPORTED BY AN ESTABLISHED HAVAS CORE TEAM THAT ENSURES CONSISTENT GROWTH 20 Brands “Havas has been an amazing partner to me “Havas immerses themselves into each 17 Brands because they bring together media and situation—making it easy to collaborate, audience data in a way that no other partner suc
Slide 55: Professional branded campaign
PROFESSIONAL BRANDED CAMPAIGN 100% 75% Adoption Adopted with no changes 25% Adopted with changes due to regulatory and cultural requirements - Investor presentation 55
Slide 56: Pfizer and Covid
PFIZER AND COVID Havas Life has created singular brand experiences that have driven some of the most important brand launches during the COVID-19 pandemic: the launch of Comirnaty—Pfizer and BioNTech’s COVID- 19 vaccine—as well as Paxlovid, Pfizer’s COVID antiviral. - Investor presentation 56
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Slide 58: Media's transformation journey
MEDIA’S TRANSFORMATION JOURNEY Peter Mears, Global CEO, Havas Media Network
Slide 59: A dynamic and shifting global media landscape is our growth opportunity
4 A DYNAMIC AND SHIFTING GLOBAL MEDIA LANDSCAPE IS OUR GROWTH OPPORTUNITY Data & tech led Commerce driven Content centric 67% $140B $1.2B+ Of CMOs are overwhelmed by data Expected retail media spend in 2024 Olympic ad spend (highest ever) Sou rce : Adverity Sou rce : eMarketer Sou rce : NBC Universa
Slide 60: Media experiences are being redefined by today's connected consumer
Media experiences are being redefined by today’s connected consumer. Our future-forward strategy is rooted in seizing the market opportunities in content, commerce and data & tech. - Investor Presentation 60
Slide 61: Three-pronged growth approach for the future
THREE-PRONGED GROWTH APPROACH FOR THE FUTURE Diversified Services Core Business Optimization External Growth from M&A €400 MM(1) investing in AI, machine learning & tech 9 Leveraging Centers Media acquisitions of Excellence in LATAM, aligned to growth strategy in 2023 and 2024 India and Spain - Inve
Slide 62: We are the media, data and tech arm of Converged
4 We are the media, data and tech arm of Converged. - Investor Presentation 62
Slide 63: Reaching targeted audiences through media experiences
REACHING TARGETED AUDIENCES THROUGH MEDIA EXPERIENCES Selected KPIs 8,525 140+ ~3,000 €1.0bn People in YE 2023(1) Countries(1) Clients(1) 2023 Net Revenue(1) Areas of Excellence Media Consulting & Retail Media and Media Performance Consumer Passions Data Analytics Investment E-commerce Trailblazing
Slide 64: Servicing a robust portfolio of renowned global brands
SERVICING A ROBUST PORTFOLIO OF RENOWNED GLOBAL BRANDS - Investor Presentation 64
Slide 65: Strong client satisfaction and tenure
4 STRONG CLIENT SATISFACTION AND TENURE 8.2 Average Satisfaction(1) 8+ Average tenure of global clients(2) HMN was the stronger Havas’ digital proposition on data measurement & process and Converged integration, automation and campaign are first in class” process” - Investor Presentation Notes: (1
Slide 66: Driving growth vitality globally & locally in 2023
A close up of a logo 4 Description automatically generated appoints Vancity as AgencyHMN of Record Vancity DRIVING GROWTH VITALITY appoints HMN GLOBALLY & LOCALLY as Agency of Record IN 2023 A red and white background with white text #1 #1 #2 Description automatically generated HMN as of Record Medi
Slide 67: Fueled by brilliant media practitioners, strategists, tech leaders and specialists
A screenshot of a person FUELED BY BRILLIANT MEDIA Description automatically generated PRACTITIONERS, STRATEGISTS, TECH LEADERS AND SPECIALISTS AROUND THE WORLD Havas Media Announces New Announcement of Louise Appointment of Jorge Leadership Roles to Drive Simkin as President, HMN Irizar as CEO Spai
Slide 68: Core services and diversified services
CORE Havas network is accelerating growth beyond core DIVERSIFIED SERVICES media services with diversified services as key levers SERVICES Content & activation Media investment & strategy eCommerce & retail media Media performance Data & tech - Investor Presentation
Slide 69: Media investment and strategy: Media Experience process
MEDIA INVESTMENT AND STRATEGY Our Media Experience (Mx) process guides our work and ensure we deliver effective media experiences consistently and at global scale Deep intelligence on people, Designing budgeting solutions Rapid and accurate activation Focusing on analytical rigor to their relationsh
Slide 70: Best-in-class media performance
BEST-IN-CLASS We are uniquely positioned to deliver MEDIA a boutique experience and deep access to PERFORMANCE integrated agency’s assets Strategy Linear CTV, OLV, Digital Display, Paid Search Programmatic & Planning TV YouTube Mobile, Native & Social Media Influencer Analytics & Retail Media Audio
Slide 71: Havas Play: connecting fans to brands through content & activation
4 HAVAS PLAY: CONNECTING FANS Branded TO BRANDS THROUGH Content CONTENT & ACTIVATION Havas Play’s 600+ experts Social + in 27 countries create content Strategy, Influencers and experiences that are intertwined Consulting & with consumer passions, activating Ideation in the spaces that matter most to
Slide 72: Havas Market: driving meaningful e-commerce growth
HAVAS MARKET: DRIVING MEANINGFUL E-COMMERCE GROWTH Havas Market’s 200+ eCommerce consultants and 600+ retail media experts In 27 countries experts optimize the entire path of purchasing to deliver meaningful shopping experiences and best-in-class service for clients. Strategic Operations Content Pai
Slide 73: CSA: bringing meaningfulness to data & tech
CSA: BRINGING MEANINGFULNESS TO DATA & TECH Data Strategy Transformation Roadmap CSA’s 400+ experts in 20+ KPI Framework Definition countries meaningfully grow Data and Technology Audits businesses around the world through a customer-focused and results-oriented approach Measurement to data analysis
Slide 74: Media experiences are proven to drive incremental business growth
MEDIA EXPERIENCES ARE PROVEN TO DRIVE INCREMENTAL BUSINESS GROWTH 20% increase in ROAS(3) Awareness up 6% despite competitive out-spending Average Cost Kia relaunch delivered 10pt for Attention(2) between lift in aided awareness 15% increase in Leveraging owned media 34% and 51% more consideration a
Slide 75: Our media experiences are globally awarded across leading festivals
OUR MEDIA EXPERIENCES ARE GLOBALLY AWARDED ACROSS LEADING FESTIVALS The Hidden Story Phone2Gold Kia Outdoor Legends Liquid Billboard L’Enfant Bleu Orange KIA Adidas - Investor Presentation 75
Slide 76: Havas Middle East x Adidas: The Liquid Billboard
HAVAS MIDDLE EAST X ADIDAS The Liquid Billboard: Inspiring women in MENA to feel comfortable in water Challenge 32% of women in the world don’t feel comfortable swimming in public. In the Middle East, that number rises to 88%. Being raised in a society where swimming isn’t widely accepted as appropr
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Slide 78: A global media network well-positioned for future growth
A global media network well-positioned for future growth 01 02 03 Clear future-forward Investments in data growth strategy aligned Long-tenured client & tech supporting group to Content, Commerce base and robust Converged strategy and OS & Data network ecosystem driving growth momentum - Investor Pr
Slide 79: Converged: unlocking data, tech & AI
CONVERGED: UNLOCKING DATA, TECH & AI Dan Hagen, Chief Data and Technology Officer
Slide 80: Data & tech are fundamental to the shifts we see
DATA & TECH ARE FUNDAMENTAL TO THE SHIFTS WE SEE - Investor Presentation 80
Slide 81: 70% of digital transformations fail across industries
BUT 70% OF DIGITAL TRANSFORMATIONS FAIL ACROSS INDUSTRIES Source : McKins ey IT'S USUALLY WAYS OF WORKING THAT ARE THE PROBLEM Source : McKins ey - Investor Presentation 81
Slide 82: Our data & tech approach is purposefully human & client-centric
...WHICH IS WHY OUR DATA & TECH APPROACH IS PURPOSEFULLY HUMAN & CLIENT-CENTRIC - Investor Presentation 82
Slide 83: 4 key levers of our strategy
4 KEY LEVERS OF OUR STRATEGY 01 02 03 TALENT LED TARGETED DATA INTEGRATED TECH Diverse, networked, Client led data Converged OS: end specialist local and investments to end capabilities global capabilities, decisions, without flexibly integrated to enhanced through M&A ownership client systems 04 Em
Slide 84: Underpinned by an accelerated investment
UNDERPINNED BY AN ACCELERATED INVESTMENT ~€60 MILLION(1) / YR ON AVERAGE INVESTED OVER T HE LAST 10 YEARS ~€100 MILLION(1) / YR ON AVERAGE PL ANN ED OVER 2 0 24-2 02 7 - Investor Presentation Note: (1) Includes Op ex, Cape x and M&A-rela ted 84
Slide 85: Leading talent in data & tech capabilities around the world
1 LEADING TALENT IN DATA & TECH CAPABILITIES AROUND THE WORLD Camila Nakagawa, EVP at Oodaye Shukla, Chief Data Arthur Fullerton joins Havas POP driving Personalized Officer at Havas Health LEADING EXPERTS IN Cx to drive AI specialism Content at Scale Network MEASUREMENT, DATA SCIENCE, AI, CONSULTAN
Slide 86: Broad data capabilities leveraging market specialists and centers of excellence
1 BROAD DATA CAPABILITIES LEVERAGING MARKET SPECIALISTS SUPPORTED BY SCALED CENTERS OF EXCELLENCE Broad set of capabilities Network and local offering Data Data Data Data Business Analysis Engineering Science Strategy Analysis Tech Campaign Data UX / UI Product Deployment Design Visualization Design
Slide 87: A targeted and flexible data approach providing competitive advantage
2 A TARGETED AND FLEXIBLE DATA APPROACH DESIGNED TO PROVIDE OUR CLIENTS WITH A COMPETITIVE ADVANTAGE Specialist Behavioral & Deterministic Proprietary Health Attitudinal Trillions of Consumer Data Unrivalled access to detailed Data to understand behaviour, 15+ years of longitudinal study Points heal
Slide 88: The Converged Operating System: integrated tech platform
3 THE CONVERGED OPERATING SYSTEM: AN INTEGRATED TECH PLATFORM CONSOLIDATING HAVAS CAPABILITIES & DATA AI AND DATA-DRIVEN PLATFORM, DEFINED BY A FOUR-STEP PROCESS Intelligence Activation Data neutral analysis Campaign creation & & insights deployment Design Measurement Holistic strategic Analytics, m
Slide 89: The Converged Operating System in action
3 THE CONVERGED OPERATING SYSTEM IN ACTION - Investor Presentation 89
Slide 90: The Converged Operating System: Intelligence
3 THE CONVERGED OPERATING SYSTEM: INTELLIGENCE I DATA NEUTRAL ANALYSIS & INSIGHTS SECURE CLIENT FIRST-PARTY DATA CLEAN ROOMS AI-DRIVEN MODELS FOR PROPENSITY, CLUSTERING AND DYNAMIC SEGMENTS GEN AI VISUALIZATION FOR AGENCY AND CLIENT USE CASES - Investor Presentation 90
Slide 91: The Converged Operating System: Design
3 THE CONVERGED OPERATING SYSTEM: DESIGN I HOLISTIC STRATEGIC DEPLOYMENT JOURNEY ORCHESTRATION BUDGET SCENARIO PLANNING CREATIVE AND CONTENT EXPLORATION - Investor Presentation 91
Slide 92: The Converged Operating System: Activate
3 THE CONVERGED OPERATING SYSTEM: ACTIVATE CAMPAIGN CREATING AND DEPLOYMENT SEAMLESS AUDIENCE ACTIVATION THROUGH IDENTIFIERS AND ALGORITHMS INVENTORY MANAGEMENT THROUGH QUALITY, ATTENTION AND CARBON IMPACT MEASUREMENT AI-DRIVEN CONTENT CREATION AND DELIVERY - Investor Presentation 92
Slide 93: The Converged Operating System: Measure
3 THE CONVERGED OPERATING SYSTEM: MEASURE ANALYTICS, MEASUREMENT GLOBAL PERFORMANCE DATALAKES AND OPTIMIZATION AI-DRIVEN CREATIVE ANALYSIS SUITE OF MODELS FOR BUSINESS OUTCOMES - Investor Presentation 93
Slide 94: Case study: fostering AI capabilities with Adobe
4 CASE STUDY: FOSTERING AI CAPABILITIES WITH ADOBE TO STREAMLINE EVERY CREATIVE PROCESS 100,000+ Firefly generations/month 5,000 Creativity Production Content Management Global users Firefly aided creation Rapid content Quick distribution creation Generative fill Atomic content Content aware fill Au
Slide 95: 4 key levers of our strategy
4 KEY LEVERS OF OUR STRATEGY 01 02 03 TALENT LED TARGETED DATA INTEGRATED TECH Diverse, networked, Client led data Converged OS: end specialist local and investments to end capabilities global capabilities, decisions, without flexibly integrated to enhanced through M&A ownership client systems 04 Em
Slide 96: Break
BREAK We will be back at 11:30am GMT / 12:30pm CET.
Slide 97: An engaging people experience
AN ENGAGING PEOPLE EXPERIENCE Patti Clarke, Chief People Experience Officer
Slide 98: Talent + culture: our unique positioning
TALENT + CULTURE: OUR UNIQUE POSITIONING • Workplace culture • Compensation and benefits Today’s employees have high expectations when it comes to their job • Purpose driven organization • Communication search. • Career growth • Flexibility Havas has a unique position in the marketplace, offering: G
Slide 99: Our people experience strategy
OUR PEOPLE EXPERIENCE STRATEGY Rooted in Five Core Commitments Belonging Learning Wellbeing Career Impact - Investor Presentation 99
Slide 100: Belonging
To build on our strengths of fairness and belonging by continuing to ensure all are welcomed as part of a team, encouraged to show up authentically, and energized to share their thoughts and ideas. - Investor Presentation 100
Slide 101: Global initiatives
Global Initiatives Havas All In is our global approach to Inclusion and Belonging, engaging all levels of the organization to drive local actions and initiatives in 2023 180+ 56 42 Actions Agencies Countries According to the January 2024 Global Employee Survey: • I can be my authentic 77% • self at
Slide 102: Increasing women in creative leadership
7 + A focused commitment to increasing the number of women in creative leadership Women Representation (2023) Women in creative roles at Havas MANAGERS 54.9% 46% 2023 WOMEN OVERALL Women in creative leadership roles 58.5% CEO, PRESIDENT, MANAGING DIRECTOR 5.7% 43% 2021 24.8% 2023 - Investor Presenta
Slide 103: Learning
To nurture an environment where curiosity and ongoing learning is encouraged each day. Investing in growth and development programs in addition to ensuring education on the latest skills and innovations that impact our business. - Investor Presentation 103
Slide 104: Online learning management system accessible to all
2023 Usage Online learning 6,900 management system UNIQUE USERS accessible to all PER MONTH employees 16,000 Extensive library of VISITS courses & certifications PER MONTH on professional skills, innovative trends, leadership, inclusion, 114,000 COURSE compliance, and more. COMPLETIONS Comprehensive
Slide 105: Develop the leaders of tomorrow with the pioneers of today
Linda Hill Adam Grant Sara Develop the leaders Blakely of tomorrow with the Ian Bremmer pioneers of today. Stanley McChrystal Elite-level digital learning from the biggest minds in business. Featuring more…. Fortune 500 Executives Simon Ivy-League Academics Sinek Michael Strahan Best-Selling Authors
Slide 106: Leadership and media experience training
global 329 participants 37 Countries Executive 3 intensive, Creates a global Leadership onsite, community of Promotion Retention development experiential modern Havas 54% rate* 77% rate* program learning modules leaders *2018-2024 Participant Data Retention rate excludes involuntary attrition. Media
Slide 107: Wellbeing
To offer an environment that prioritizes health and wellbeing through open conversations, caring managers and teams, and active learning and awareness and encouraging self-care. - Investor Presentation 107
Slide 108: Supporting employee mental health
Custom-designed mental health A distinct focus on supporting employee awareness content series mental health, both globally and locally 45+ Employee Wellness Champions trained to help drive wellbeing initiatives in local markets Continuous Global Learning Opportunities 2 modules of short, Fundamenta
Slide 109: Driving Havas Minds participation
Driving Havas Minds participation through leadership support and engagement - Investor Presentation 109
Slide 110: Career
To offer fulfilling careers that encourage exploration, experiences, and mobility within teams and across the group. Guided by supportive and engaged leaders, our focus is finding the right path for each individual. - Investor Presentation 110
Slide 111: Career Companion: offerings to support employee careers
A WIDE RANGE OF OFFERINGS TO SUPPORT EMPLOYEE CAREERS We ensure all employees are Performance Reviews designed for actionable growth conversations equipped with the key Career Mapping to guide progression of the majority of roles resources to track, plan, and explore their career path: Mobility Expe
Slide 112: Career advancement programs for women
Career Advancement Programs for Women Advancement program Career confidence-building Leadership development for senior manager / director level for junior-level women for women creative directors 365+ participants 600+ participants 24 participants 34 countries 44 countries % of women in Creative 67%
Slide 113: Impact
7 To each do our part in contributing to One Havas, with trust, collaboration, and the pursuit of excellence at the core. Together we celebrate our wins, learn from our setbacks, and take pride in knowing our efforts and ideas are making a meaningful difference. - Investor Presentation 113
Slide 114: People experience feedback & measurement
7 PEOPLE EXPERIENCE FEEDBACK & MEASUREMENT Global Employee Survey Quantitative and qualitative measuring the factors that insight into the full people impact employee performance experience through the and satisfaction at Havas following factors: JAN 2024 83% • People & Teams • Agency Leadership • F
Slide 115: Our people experience commitments
HAVAS OUR PEOPLE EXPERIENCE COMMITMENTS Belonging Learning Wellbeing
Slide 116: Financial performance & guidance
FINANCIAL PERFORMANCE & GUIDANCE François Laroze, Chief Financial Officer
Slide 117: Sound historical financials
01 02 03 SOUND SOLID GROWTH TRACK RECORD AT STRONG HISTORICAL THROUGH THE DRIVING MARGIN CASH FLOW FINANCIALS CYCLE EXPANSION GENERATION - Investor Presentation 117
Slide 118: Long-term organic growth of the agency sector
1 LONG-TERM ORGANIC GROWTH OF THE AGENCY SECTOR Havas & Peers1 Quarterly Organic Growth* Peers1 average World GDP growth2 25% 20% 15% 10% 5% 0% (5%) (10%) (15%) (20%) (25%) Q4-16 Q2-17 Q4-17 Q2-18 Q4-18 Q2-19 Q4-19 Q2-20 Q4-20 Q2-21 Q4-21 Q2-22 Q4-22 Q2-23 Q4-23 Q2-24 RESILIENCE OF THE COMMUNICATION
Slide 119: Solid growth through the cycle
1 SOLID GROWTH THROUGH THE CYCLE 2018 - 2023 Net Revenue* Evolution (€m) 2,695 +4.5%/year1 Total Growth* 2,590 Resilient growth during Covid crisis, with a quick recovery 2,256 2,238 2,195 2,049 Balanced growth, with a mix of organic and M&A 2018 2019 2020 2021 2022 2023 Note (1): Rounded, average r
Slide 120: A balanced growth
1 A BALANCED GROWTH Total growth* breakdown TOTAL Average rate in %1 GROWTH* From end of 2018 to end of 2023 +4.5% per year ORGANIC FOREIGN SCOPE* GROWTH* EXCHANGE* +2.1% +1.8% +0.6% per year per year per year See appendix detailed information for 2021 to 202 Note (1): Rounded, based on single decim
Slide 121: All regions provided a solid growth
1 ALL REGIONS PROVIDED A SOLID GROWTH +3.4% 2018-2023 Total Average Growth* 1,146 (in %, end of 2018 to end of 2023) and Average Net Revenue* (€m)1 +5.4% 862 +4.5% 2,337 Europe +6.0% 201 North America +8.9% Asia Pacific and Africa 128 Havas Latin America See appendix detailed information for 2021 to
Slide 122: Robust EBIT margin expansion 2018-2023
2 ROBUST EBIT MARGIN EXPANSION 2018-2023 Adjusted EBIT* and Adjusted EBIT Margin* Evolution Adjusted EBIT* reflects more (€m) and (%) accurately the Group’s operating performance 12.1% +130bps +€90m 327 1 EBIT Operating Income Goodwill impairment / 10.8% 297 earn-out adjustments 237 243 247 Restruct
Slide 123: Strong and recurrent operating cash flow over time
3 STRONG AND RECURRENT OPERATING CASH FLOW OVER THE TIME 2018-2023 Operating Cash Flow* (in €m) Cash 83.0% 87.7% 91.9% 92.2% 90.0% 89.7% 2018-2023 average Conversion (%)* Operating Cash Flow* 370 +€309m / year 332 37 341 307 26 35 281 25 Operating Cash Flow* 35 224 Capex* 38 2018-2023 average 333 28
Slide 124: Strong positive cash flow generation fuelling dividends and M&A
3 A STRONG POSITIVE CASH FLOW GENERATION FUELLING DIVIDENDS AND M&A Breakdown of Cash Flow generation* Average Amount (€m) over the period (6 years from 2018 to 2023) Cash Flow generation before M&A 309 and Dividends (33) (80) ~+276€m/year (73) Positive Cash (74) Flow generation 49 ~+€49m/year Opera
Slide 125: Long-term net cash position evolution
3 LONG-TERM NET CASH POSITION* EVOLUTION Net Cash* Evolution since end of Dec. 2018 Very Strong (€m) Net Cash* position: 467 X 3 over the last 5 years 431 +€288m 375 212 After financing (amounts cumulated1 over the 5 years) 169 143 ▪ Capex* €151m ▪ M&A* €404m ▪ Dividends* €345m Dec-18 Dec-19 Dec-20
Slide 126: 2024 update: proof of solidity
2024 UPDATE: PROOF OF SOLIDITY 126
Slide 127: 2024 landing
2024 LANDING 2024 Landing Year-end 2024 expected to continue to be soft organically* ▪ Organic growth range of -1% to 0% Robust Adjusted EBIT* thanks to cost ▪ Above €330m Adjusted EBIT* management ▪ Year End Net Cash* position Positive net cash* position expected expected at ~€+150m(1) at the end o
Slide 128: YTD 2024 net revenue update
YTD 2024 NET REVENUE* UPDATE Net revenue Q1 2024 Q2 2024 H1 2024 Q3 2024 9M 2024 In €m 617 691 1 308 650 1 958 % reported 4.8% 2.2% 3.4% -0.5% 2.1% % scope 3.7% 3.4% 3.5% 2.0% 3.0% % organic growth 2.0% -1.7% 0.0% -2.3% -0.8% % 2023 organic growth 1.9% 6.3% 4.2% 4.5% 4.3% Breakdown by region, organi
Slide 129: 2024 M&A abilities further proven this year
2024 M&A ABILITIES FURTHER PROVEN THIS YEAR DMPG Hotglue Liquid Ted Wilderness Ledger Bennet September 24 July 24 March 24 March 24 February 24 January 24 • Digital analytics • Leading independent • Ecommerce and retail • Data consulting and digital • Social marketing • B2B full-service agency agenc
Slide 130: Margin expansion in H1 2024
MARGIN EXPANSION IN H1 2024, DESPITE STABLE ORGANIC GROWTH Adjusted EBIT* Seasonality of EBIT* (€m) and margin* (%) Weight of each semester (% of annual EBIT) 9.5% +70bps 10.2% +10.8% YoY H1 H2 133 120 63% 62% 63% 37% 38% 37% H1 2023 H1 2024 2021 2022 2023 Source: Havas accounts, Vivendi’s fi lings
Slide 131: Healthy financial structure with net cash position
HEALTHY FINANCIAL STRUCTURE WITH NET CASH POSITION END OF JUNE 2024 Net Cash* Evolution (€m) Liquidity Position as of 30-Sept.-24 €279m 467 after €150m of Cash and cash 431 exceptional dividend paid in H2 2024 equivalents 206 €700m 150 RCF 124 €979m Dec-22 dec-22 Jun-23 Dec-23 Jun-24 Dec-24 expected
Slide 132: Outlook: 2025 and beyond
HAVAS OUTLOOK: | 2025ANDBEYOND
Slide 133: Clear financial strategy for the years to come
CLEAR FINANCIAL STRATEGY, FOR THE YEARS TO COME Profitable organic A B C 1 growth* ▪ Unleashing the full potential of ▪ Pursuing clear business ▪ Continuing our regular Converged strategy to support opportunities development in all management of costs, in line new business: verticals, notably: with
Slide 134: Converged strategy investments acceleration
1 A THE CONVERGED STRATEGY, BRINGING HAVAS TO THE NEXT LEVEL IN A CHANGING WORLD INVESTMENTS ACCELERATION €400 million Representing Over 2024-2027 (from €600m invested between 2014 and 2023) 62% Opex New clients 38% Capex and Budget wins M&A related - Investor Presentation 134
Slide 135: Pursuing clear business opportunities development in all verticals
1 B PURSUING CLEAR BUSINESS OPPORTUNITIES DEVELOPMENT IN ALL VERTICALS Address High Growth Areas Innovation Focus Scale Personalized Content Leveraging our Centers of Excellence in LATAM, India and Spain Address expected secular growth in digital and retail segments Provide innovative and Deploy our
Slide 136: Continuing our regular management of costs
1 C CONTINUING OUR REGULAR MANAGEMENT OF COSTS, IN LINE WITH OUR FINANCIAL CULTURE Continuous cost Considering potential Leverage our investments in management measures technology and AI streamlining organizations to optimize operating costs to drive costs efficiencies in smaller countries across th
Slide 137: M&A: pursuing a dynamic bolt-on M&A strategy
2 M&A: PURSUING A DYNAMIC BOLT-ON M&A STRATEGY ACCRETIVE ACCRETIVE 5 TO 10 GROWTH MARGIN ACQUISITIONS > > 40 to 50 m€ of Group level of Group level of Net Revenue* SUPPORTING THE 2025 & MID TERM GUIDANCE - Investor Presentation * S ee Glossa ry, in the ap pendix. 137
Slide 138: Sustainable dividend policy
3 SUSTAINABLE DIVIDEND* POLICY 2021-2023 Dividends paid to Havas Shareholders (1) and payout ratio* (in €m) Payout* 42% of dividends payout ratio Ratio (%) 29% 45% 51% on average over 2021-2023 85 77 Dividends €65m Average dividend payments* 33 payment over 2021-2023 2021 2022 2023 - Investor Presen
Slide 139: 2025 and mid-term guidance
2025 & AND BEYOND GUIDANCE 1 2025 Guidance Above 2% Adjusted EBIT margin* Pay-out ratio* of organic growth* of 12.5%-13.5% around 40% 2 Mid-term Guidance, end of 2028 Adjusted EBIT margin* Pay-out ratio* of of 14.0%-15.0% around 40% See assumptions in the prospectus - Investor Presentation * S ee Gl
Slide 140: Conclusion
HAVAS ™~ CONCLUSION ,
Slide 141: Compelling investment case
COMPELLING INVESTMENT CASE Creativity at its best Integration model Best data, tech and AI tools Talent & culture M&A strategy - Investor Presentation 141
Slide 142: Q&A
Q&A
Slide 143: Thank you
Thank you
Slide 144: Appendix
Appendix - Investor Presentation
Slide 145: Havas has consistently reinvented itself: recent milestones
HAVAS HAS CONSISTENTLY REINVENTED ITSELF: RECENT MILESTONES 2021-2024: Havas continues its M&A strategy Eurocom, Havas’s Havas strengthens Havas puts “digital Yannick Bolloré Health & Havas’s global creative business, its commitments at the core” succeeds communications strategic advisory Recognized
Slide 146: Impact of currency and scope into total growth
IMPACT OF CURRENCY AND SCOPE INTO TOTAL GROWTH 2021-2023 Net Revenue* Breakdown 2021 2022 2023 Organic Growth* 10.4% Organic Growth 6.8% Organic Growth 4.4% FX Impact* (2.3%) FX Impact 6.3% FX Impact (2.2%) Scope Impact +1.1% Scope Impact +2.7% Scope Impact +1.9% Total Growth 9.2% Total Growth 15.8%
Slide 147: Seasonality of the business
SEASONALITY OF THE BUSINESS 2021 - 2023 Net Revenue* Evolution 29% 29% (€m) 776 30% 745 25% 24% 25% 25% 670 22% 677 25% 22% 642 639 654 24% 21% 588 561 564 529 478 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 Higher weight of the 4 th quarter, due to higher year-end campaigns expenses Sou rce
Slide 148: All regions provided a strong growth
ALL REGIONS PROVIDED A STRONG GROWTH 2021-2023 Total Average Growth (%) +7.3% and Average Net Revenue (€m)1 1,222 +9.8% 928 +9.9% +16.4% Europe 2,508 219 North America Asia Pacific and Africa +25.0% 141 Latin America Havas Notes: (1) Rounded figure s. Sou rce s: Havas accoun ts, Vivend i’s filings -
Slide 149: Powering expertise in Havas Centers of Excellence
POWERING EXPERTISE IN HAVAS CENTERS OF EXCELLENCE 8 Centers of Excellence 1,100+ skilled professionals Bringing together PRODUCTION CUSTOMER EXPERIENCE DATA MANAGEMENT E-COMMERCE experts specialized in fields such as production, e-commerce, data management & customer experience, leveraging specific,
Slide 150: Financial glossary
FINANCIAL GLOSSARY In a given year (N), represents: (i) the net revenue generated by agencies acquired in the prior year (N-1) in such year (N), plus (ii) the net revenue generated by agencies Acquired Net Revenue acquired in such year (N), starting from the date such agencies are consolidated into