Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — H1 2022 Earnings Presentation
46 slides from Publicis Groupe Sa's earnings presentation, Jul 21, 2022
Slide 1: H1 2022 Results
H1 2022 RESULTS 21 July 2022 ig PuBLICIS
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: H1 2022 Highlights
H1 2022 HIGHLIGHTS H1 2022 RESULTS OUTLOOK Q&A PuBLICIS
Slide 4: Another record first half in 2022
ANOTHER RECORD FIRST HALF IN 2022 Organic Reported net Operating Free Cash growth revenue margin rate Flow” +10.3% Q2’22 €5.9bn 17.3% €708M +10.4% H1’22 +19% vs. 2021 vs. 16.5% in 2021 vs. €605M in 2021 +35% vs. 2019 Upgrade FY 2022 guidance on all KPIs PUBLICS () Before working capital requirements
Slide 5: Strong Q2 organic growth
STRONG Q@2 ORGANIC GROWTH Q2 above expectations on high comparable base 1. Avery solid performance across all regions +10.3% Groupe 2. Further acceleration at Publicis Sapient and Epsilon Q2’22 3. New Business momentum +17.1% in Q2’21 PUBLICIS GROUPE 5
Slide 6: Very solid performance in all geographies
VERY SOLID PERFORMANCE IN ALL GEOGRAPHIES +10.1% +10.1% +6.5% U.S. Q2’22 Europe Q2’22 : APAC Q2’22 +15.2% in Q2’21 +23.0% in Q2’21 +13.6% in Q2’21 * Media, Epsilon and Publicis Sapient * Europe grew +10.7% excluding * China up +2.7%, accretive to the performance : Outdoor Media activities & the Drug
Slide 7: Further acceleration at Publicis Sapient & Epsilon
2 FURTHER ACCELERATION AT PUBLICIS SAPIENT & EPSILON eapient EPSILON +19.1% +13.7% Q2’22 Q2’22 Publicis Sapient & Epsilon accretive +15% in Q2’21 +33% in Q2’21 to organic growth Recovery in Auto Strong demand for ae neti DTC capabilities * Other divisions up double digit & Digital Business » Sustain
Slide 8: Continued new business momentum after record 2021
CONTINUED NEW BUSINESS MOMENTUM AFTER RECORD 2021 H1 2022 New Business wins . New Business wins rankings a | ABInBev Media U.S. Media & Crea Global Media Global fedia ledia & Creative Globa ledia Globa J.PMorgan um Gross Reported Billings Net Equivalent CS) pepsi LVMH IEJNORWEGIAN Holding Company Wi
Slide 9: Increase of all Groupe financials, reaching new historical highs in H1
PUBLICIS GROUPE 10) INCREASE OF ALL GROUPE FINANCIALS, REACHING NEW HISTORICAL HIGHS IN H1 Operating Margin Rate Free Cash Flow (€M) v o 17,3% ; 15,0% 16,5% 605 491 495 13,0% H12019 H12020 12021 H12022 H12019 H12020 12021 H12022 Headline EPS (€) 12M Average Net Debt (€M) Back to pre-Epsilon acquisit
Slide 10: Leader in the industry on ESG
PUBLICIS GROUPE LEADER IN THE Ranked # 1 in our industry on ESG by 8 leading agencies MSCI ":.: Bloomberg vigeQiris_—_-ISS-oekom> Ssustco — ecovadis RATING S&P Global |) sustaiawrnics INDUSTRY ON ESG Near-term and long-term climate objectives validated again by SBTi SCIENCE BASED TARGETS Targets for
Slide 11: H1 2022 Results
H1 2022 HIGHLIGHTS H1 2022 RESULTS OUTLOOK Q&A PuBLICIS
Slide 12: Net revenue
NET REVENUE (EUR million) Ql Q2 H1 2022 net revenue 2,800 3,073 5,873 2021 net revenue 2,392 2,539 4,931 Reported growth +17.1% +21.0% +19.1% Organic growth +10.5% +10.3% +10.4% PUBLICIS GROUPE 12
Slide 13: Q2 2022 net revenue by geography
(EUR million) Q2 2022 Q2 2021 2022 vs. 2021 Q2 2022 NET REVENUE BY GEOGRAPHY Organic growth North America Europe oe pacitc “dale ee cas wtica = “ana i = Total 1,912 709 3,073 1,527 +25.2% +1. 8% 14, 2% #26. 8% +35. 2% +21, 0% +10.3% #0. 1% +6. 5% +15. 3% #20. 7% +10. 3% () Organic growth in Europe w
Slide 14: Q2 2022 performance - North America
Q2 2022 PERFORMANCE - NORTH AMERICA 2022 Organic (EUR million) Q2 2022 Q2 2021 vs. 2021 growth North America 1,912 1,527 +25.2% +10.3% US + 60% of Groupe net revenue Organic growth: +10.1% Media: strong performance with traditional and digital both growing double-digit Creative: further sequential i
Slide 15: Q2 2022 performance - Europe
Q2 2022 PERFORMANCE - EUROPE 2022 Organic (EUR million) Q2 2022 Q2 2021 vs. 2021 growth Europe 709 634 +11.8% +10.1% UK France Germany Central & Eastern Europe 9% of Groupe net revenue + 5% of Groupe net revenue + 3% of Groupe net revenue + 2% of Groupe net revenue Organic growth: +15.5% * Organic g
Slide 16: Q2 2022 performance - Rest of World
Q2 2022 PERFORMANCE REST OF 2022 Organic (EUR million) Q2 2022 Q2 2021 vs. 2021 growth _Asla Pacific +14. 2% +6. 5% “Middle East Africa “Latin America 90 71 289 253 73 54 +35. 2% +26. 8% #15. 3% “420. 7% Asia Pacific 9% of Groupe net revenue Organic growth: +6.5% Continued double-digit growth in Med
Slide 17: H1 2022 net revenue by geography
H1 2022 NET REVENUE BY GEOGRAPHY 2022 Organic (EUR million) H1 2022 H1 2021 vs. 2021 growth North America 3,660 3,032 +20.7% +9.3% Europe 1,371 +14.7% +12.3%™ Asia Pacific 550 +17.0% +10.1% Middle East Africa 165 +24, 1% +14, 5% numa America a rn res — 7 se a — —_o oo - ae en (1) Organic growth in E
Slide 18: H1 2022 performance by industry
H1 2022 PERFORMANCE BY INDUSTRY Net revenue split 3,267 main clients representing 91% of Groupe net revenue Net revenue growth per client industry“) Leisure Energy & & travel manuf. Public sector 26% +8% Automotive & Other > Financials 5%) +14% +4% 13% 4% Retail +20% Non-food consumer 42% products +
Slide 19: Consolidated income statement
CONSOLIDATED INCOME STATEMENT (EUR million) H1 2022 H1 2021 Change Revenue 6,547 5,493 Net revenue 5,873 4,931 +19.1% EBITDA 1,287 1,052 422.3% Operating margin 1,018 815 +24.9% Non-current income and expenses - - Net financial expenses (74) (82) Income taxes (226) (184) Associates 5 - Minority inte
Slide 20: Operating margin
OPERATING MARGIN H1 2021 FX/perimeter H1 2021 (EUR million) H1 2022 (comp.) impacts (reported) Net revenue 5,873 5,307 376 4,931 Personnel costs (3,858) (3,393) (231) (3,162) As a % of net revenue 65.7% 63.9% 64.1% Restructuring (30) (13) (@) (12) Other operating expenses (698) (757) (52) (705) Depr
Slide 21: H1 2022 - Change in operating margin
H1 2022 - CHANGE IN OPERATING MARGIN AS A % OF NET REVENUE 18O0bps increase in personnel costs ‘ H +90bps 17.3% +40bps 16.9% : : i 16.5% Hl : : P| ' ' ' +160bps | ees | me \ / === H1 2021 FX and H1 2021 Fixed Freelance Restructuring Other operating Depreciation’? H1 2022 (reported) perimeter (compar
Slide 22: Net financial income (expense)
NET FINANCIAL INCOME (EXPENSE) (EUR million) H1 2022 H1 2021 Interest on net financial debt (27) (45) Interest on lease liabilities (45) (35) Foreign exchange gain (loss) - 1 Other financial expenses” (2) (3) un worn eS ee oe senna — sen (1) _ Includes provisions on financial assets, dividends outsi
Slide 23: Income tax and effective tax rate
INCOME TAX AND EFFECTIVE TAX RATE (EUR million) H1 2022 H1 2021 Reported income taxes 189 135 Reversal in income tax on amortization of intangibles arising from acquisitions 34 32 Reversal in income tax on impairment and real estate consolidation 1 22 Reversal in income tax on other items (8) (5) He
Slide 24: Headline earnings per share, diluted
HEADLINE EARNINGS PER SHARE, DILUTED‘ +45% | - +29% > €2.88 — €2.23 = €1.98 +}— €1.75 +— E — — >—_ E = H1 2019 H1 2020 H1 2021 H1 2022 PuBLicis (1) See definition in Supplemental Information a
Slide 25: Free cash flow
FREE CASH FLOW (EUR million) H1 2022 H1 2021 Change EBITDA” 1,287 1,052 235 Repayment of lease liabilities and related interests (215) (179) (36) Capex, net of disposals (82) (50) (32) Interests paid and received (63) (82) 19 Tax paid (251) (163) (88) Free Cash Flow before change in WCR™ 708 605 103
Slide 26: Use of cash
USE OF CASH (EUR million) H1 2022 H1 2021 Free Cash Flow before change in WCR™ 708 605 Change in WCR (858) (1,191) Acquisitions (incl. earn-out & net of disposals) (376) (76) Cash impact of Russia exit (49) - Dividends paid (3) (2) Share buy-back, net of sales/ exercise of warrants 7 9 Non-cash impa
Slide 27: Net financial debt
NET FINANCIAL DEBT LTM June Dec. 31, LTM June (EUR million) 30, 2022 2021 30, 2021 Net Financial Debt, average 1,024 1,530 2,252 Net Financial Debt, at end of period 464 76 1,362 (Average net financial debt + 1.3x 1.6x 1.9x Average Lease liability) / EBITDA PUBLICIS GROUPE 27
Slide 28: Outlook
H1 2021 HIGHLIGHTS H1 2021 RESULTS OUTLOOK Q&A PuBLICIS
Slide 29: Outlook
OUTLOOK Better visibility on a solid H2’22 despite macro-economic uncertainties Strength of our model Confidence for the future 2022 Upgrade FY guidance on all KPls Organic growth +6% to +7% vs. +4% to +5% previously Operating margin rate 17.5% to 18% vs. 17.5% previously Free Cash Flow at least €1.
Slide 30: Global Media Management, Customer Data and Digital Experience Services
Global Media Management Customer Data Strategy & Activation Services Global Digital Experience Services 30
Slide 31: An agile platform organization
AN AGILE PLATFORM ORGANIZATION TO SUSTAIN INDUSTRY-HIGH FINANCIAL RATIOS Country Model Re:Sources Global Delivery Centers * Constantly adapt our structures ° Invest in our talent & product * Manage salary inflation 34
Slide 32: Conclusion
CONCLUSION After a record H1, another year of strong profitable growth in 2022 Organic growth +6 to +7% | 17.5% to 18% Operating Margin | At least €1.5bn Free Cash Flow” | A larger, stronger and better company THE CAPABILITIES, THE MODEL, THE TALENT to weather any potential challenges for our client
Slide 33: Q&A
H1 2021 HIGHLIGHTS H1 2021 RESULTS OUTLOOK Q&A
Slide 34: Appendix
APPENDIX PuBLICIS
Slide 35: Net revenue & organic growth calculation
NET REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Ql Q2 2022 Currency impact 2021 net revenue a (EUR million) Ql GBP 8 Currency impact 2 125 2021 net revenue at 2022 exchange rate (a) ™ sme USD @ 100 190 290 2022 net revenue before impact of acquisitions @ (b) Other 7 35 52 Net revenue from acq
Slide 36: Condensed consolidated income statement
CONDENSED CONSOLIDATED INCOME STATEMENT (EUR million) H1 2022 H1 2021 Net revenue 5,873 4,931 Pass-through revenue 674 562 Revenue 6,547 5,493 EBITDA 1,287 1,052 Depreciation (269) (237) Operating margin 1,018 815 Amortization of intangibles arising from acquisitions (137) (126) Impairment / Real es
Slide 37: Bridge from reported to condensed comparable income statement
BRIDGE FROM REPORTED TO CONDENSED COMPARABLE INCOME STATEMENT H1 2022 H1 2021 P&L P&L Pass-through P&L P&L Pass-through FX/Perimeter Condensed (EUR million) reported impact condensed ___ reported impact Impact comparable Net revenue 5,873 5,873 4,931 376 5,307 Pass-through revenue 674 (674) 562 (562
Slide 38: H1 2022 condensed consolidated income statement
H1 2022 CONDENSED CONSOLIDATED INCOME STATEMENT Amortization Impairment / Change in fair ofintangibles Real estate value of H1 2022 arising from consolidation _ financial Main Capital Earn-out H1 2022 (EUR million) P&L acquisitions charge assets Gain/loss revaluation Headline Net revenue 5,873 5,873
Slide 39: H1 2021 condensed consolidated income statement
H1 2021 CONDENSED CONSOLIDATED INCOME STATEMENT Amortization Impairment / Change in fair ofintangibles Real estate value of H1 2021 arising from consolidation financial Main Capital Earn-out H1 2021 (EUR million) P&L acquisitions charge assets Gain/loss revaluation Headline Net revenue 4,931 4,931 P
Slide 40: Gross debt as of June 30, 2022
GROSS DEBT AS OF JUNE 30, 2022 Breakdown by maturity July 2022- July 2023- July 2024- July 2025- July 2026 (EUR million) Total June 2023. June2024 June2025 June 2026 Onwards Eurobond 2023 498 - 498 - - - Eurobond 2024 601 - - 601 - - Eurobond 2025 “? 2) 822 822 Eurobond 2028 “? 2) 847 - - - - 847 Eu
Slide 41: Balance sheet
BALANCE SHEET June 30, December 31, June 30, (EUR million) 2022 2021 2021 Goodwill and intangibles 14,274 13,139 12,583 Net right of use 1,946 1,489 1,544 Other fixed assets 1,052 916 890 Current and deferred tax (352) (330) (319) Working capital (3,696) (3,677) (2,851) TOTAL 13,224 11,537 11,847 Gr
Slide 42: Debt as of June 30, 2022
DEBT AS OF JUNE 30, 2022 Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 2024 601 601 Eurobond 2025 “ @) 822 822 Eurobond 2028 “ @ 847 847 Eurobond 2031 @) 872 872 202 26 95 13 68 Farn-out /B Other debt (36) (60) 14 2 8 Cash & marketable securities (3,342) (273) (2,058) qi) (1,
Slide 43: Net debt as of June 30, 2022
NET DEBT AS OF JUNE 30, 2022 Breakdown by rate (EUR million) Total Earn-out / Buy-out Fixed rate Floating rate Eurobond 2023 7B - se : “Eurobond 2024 Eurobond 2025 “)@) “Eurobond 2028 (2) Eurobond 2031 “ (2) “Other debt Total gross Earn-out / Buy-out “Cash & marketable secu’ (3,342) - - (3,342) ~ Ne
Slide 44: Liquidity as of June 30, 2022
LIQUIDITY AS OF JUNE 30, 2022 June 30, 2022 June 30, 2021 (EUR million) Total Drawn Available Available 364-day revolving credit facilities - - - 45 5-year revolving credit facilities - - - 442 5-year syndicated facility (Club Deal) 2,000 2,000 Total Committed Facilities 2,000 2,487 Cash and Marketa
Slide 45: 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 46: 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. + 33144 43 77 88 / Email. alessandra.girolami@publicisgroupe