Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Publicis Groupe Act — FY 2024 Earnings Presentation
51 slides from Publicis Groupe Sa's earnings presentation, Feb 4, 2025
Slide 1: FY 2024 Results
ig FY 2024 RESULTS 4 February 2025
Slide 2: FY 2024 Highlights
FY 2024 HIGHLIGHTS FINANCIAL REVIEW OUTLOOK Q&A
Slide 3: 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 4: Key Highlights from FY 2024
3 KEY HIGHLIGHTS FROM FY 2024 +5.8% organic growth Outperforming industry Growing twice as fast as peer average over 5 years “ Sustained leadership on financial KPls While increasing pace of investment in people and Al The number 1 advertising group Based on net revenue wile PUBLICIS @) Based on con
Slide 5: Outperforming on Organic Growth
OUTPERFORMING ON ORGANIC GROWTH Organic growth +6.3% Q4’24 a +5.8% FY’24 a Accelerating Outperforming from +4.7% 4Y 2023-CAGR Holdco peers by more than 100 bps by more than 3x IT consulting peers by more than 5x © Qe PUBLICIS (1) Onaverage, based on consensus GROUPE 5
Slide 6: Outperforming on Organic Growth
OUTPERFORMING ON ORGANIC GROWTH High-single-digit FY Market share gain in personalisation at scale Mid-single-digit FY New business and scope expansions in Creative and Production Slight FY decline Technology Continued client cautiousness ah across IT consulting industry publ ICIS sapient Stable in
Slide 7: Outperforming on Organic Growth
OUTPERFORMING ON ORGANIC GROWTH U.S. Q4 +5.2% FY +4.9% Strong Q4 accelerating versus Q3 despite tougher comparable Cementing our number one position in the market PUBLICIS GROUPE Europe Q4 +6.5% FY +5.4% Acceleration in Q4 driven by double-digit growth at Connected Media On top of double-digit growt
Slide 8: Sustaining Industry-High KPIs While Increasing Investment
SUSTAINING INDUSTRY-HIGH KPIS WHILE INCREASING INVESTMENT Operating margin rate i 18.0% Highest in the industry, 250bps above peer average Absorbing investments: Yc. €100m in Al plan Y €136m in talent upgrade Headline EPS ee ene €7.30 ahead of consensus +4.9% vs. 2023 compared with flat EPS growth f
Slide 9: Sustaining Industry-High KPIs
SUSTAINING INDUSTRY-HIGH KPIS >. Ly al PUBLICIS GROUPE Diversity, equity & inclusion Responsible marketing Fight against climate change Ranked #1 in industry on ESG for the 5t» consecutive year by 5 out of 10 leading rating agencies in 2024 Bloomberg ecovadis ISSESG> Moony’ rerinitiv [& Listed in 20
Slide 10: Becoming the Largest Advertising Group
BECOMING THE LARGEST ADVERTISING GROUP in Organic Growth for 3 years Advertising Group in New Business over 5 years t T FT with net revenue in Margin for more than 15 years close to €14 billion in Market Cap since 2023 10
Slide 11: From 3rd to 1st thanks to 4 unique factors
BECOMING THE LARGEST ADVERTISING GROUP From 3'¢ to 15t...thanks to 4 unique factors MARKET SHARE GAINS Sizable wins Very few losses Topping new business rankings since 2019 “ Net reported billings ($bn) - 2019-2024 171 STRATEGIC ACQUISITIONS mpnailnn; Publicis Epsilon E555) and bolt-on investments C
Slide 12: Peers (1) Peers (1) Peers (1)
Peers (1) Peers (1) Peers (1) Peers (1) 12
Slide 13: Financial Review
FY 2024 HIGHLIGHTS FINANCIAL REVIEW OUTLOOK Q&A
Slide 14: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS 2024 Organic (EUR million) FY 2024 FY 2023 vs. 2023 growth Revenue 16,030 14,802 +8.3% Net revenue 13,965 13,099 +6.6% +5.8% Operating margin 2,519 2,363 +6.6% Operating margin rate 18.0% 18.0% -- Headline group net income “ 1,851 1,767 +4,.8% Free cash flow before change in
Slide 15: Net Revenue
NET REVENUE (EUR million) Ql Q2 Q3 Q4 FY 2024 netr revenue 3, :230 3 458 — 3 425 3, 854 13,965 2023 net revenue 3,079 3,239 3,241 3,540 13,099 Reported growth +4.9% +6.8% +5.6% +8.9% +6.6% ofw F FX X impact — -1.0% +0.4% -1.2% +0.4% -0.3% o/w M M&A A impact +0.6% +0.8% +1.0% 42.1% +1.2% Organic grow
Slide 16: Q4 Net Revenue by Geography
Q4 NET REVENUE BY GEOGRAPHY 2024 Organic (EUR million) Q4 2024 Q4 2023 vs. 2023 growth North America 2,366 2,158 +9. 6% +5. 6% Europe 923 851 +8. 5% +6. 5% ne, cee ee x os om “nde e. can Mica | Hes ee x we _ ae i ae vo ao. So Total 3,854 3,540 +8.9% +6.3% Ron? PUBLICIS GROUPE 16
Slide 17: Q4 2024 Performance - North America
Q4 2024 PERFORMANCE - NORTH AMERICA 2024 Organic (EUR million) Q4 2024 Q4 2023 vs. 2023 growth North America 2,366 2,158 +9.6% +5.6% U.S. - 59% of Groupe net revenue * Organic growth: +5.2% + Both Connected Media and Intelligent Creativity up mid-single digit, driven by new business wins and scope e
Slide 18: Q4 2024 Performance - Europe
Q4 2024 PERFORMANCE - EUROPE 2024 Organic (EUR million) Q4 2024 Q4 2023 vs. 2023 growth Europe 923 851 +8.5% +6.5% U.K. France Germany Central & Eastern Europe 9% of Groupe net revenue Organic growth: +7.2% Double-digit performance of Connected Media Strong high-single digit growth of Intelligent Cr
Slide 19: Q4 2024 Performance - Rest of the World
Bote: PUBLICIS GROUPE Q4 2024 PERFORMANCE - REST OF THE (EUR million) Q4 2024 Q4 2023 2024 Organic vs. 2023 growth Asia Pacific Middle East Africa Latin America 339 318 111 106 115 107 +6.6% +5.0% +4.7% +3.4% +7.5% +30.3% Asia Pacific * 9% of Groupe net revenue * Organic growth: +5.0% * China slight
Slide 20: FY 2024 Net Revenue by Geography
FY 2024 NET REVENUE BY GEOGRAPHY 2024 Organic (EUR million) FY 2024 FY 2023 vs. 2023 growth North America 8,583 8,050 +6.6% +5.1% Europe 3 384 3,172 +6. 7% +5. 4% rue, pacite 1 28 “ase sas ~ 7 a _— “Wile Ee Eau varia — a ae 5 a _— . —_ — ne 722.9 ox ToT RENEE s,099 se. ae 7 - a Ron? PUBLICIS GROUPE
Slide 21: FY 2024 Performance by Industry
FY 2024 PERFORMANCE BY INDUSTRY Net revenue growth per client industry “ Energy Others ? & manuf. 0% Healthcare +25% Public sector & other services -4% Leisure & travel +17% ° Automotive 13% +4% Retail -2% Non-food consumer Financial products -2% +5% TMT Food & beverage 5 +10% +4% PUBLICIS: (1) Grow
Slide 22: Operating Margin
OPERATING MARGIN 2024 vs (EUR million) FY 2024 FY 2023 2023 Net revenue 13,965 13,099 +6.6% Personnel costs (9,088) (8,403) +8.2% As a % of net revenue 65.1% 64.1% +95 bps Restructuring (136) q111) +22.5% Other operating expenses “ (1,727) (1,740) -0.7% Depreciation (495) (482) +2.7% Operating margi
Slide 23: FY 2024 - Change in Operating Margin
FY 2024 - CHANGE IN OPERATING MARGIN °) AS A % OF NET REVENUE Al investment = c. €100 million (7Obps) 18.0% -95bps +15bps 18.0% baci | y : 0/w Al inv. [ -5Obps GY o/w Al inv. -20bps FY 2023 Personnel costs Restructuring Other Depreciation FY 2024 excl. restructuring operating expenses Qe PUBLICIS GR
Slide 24: Headline Income Statement
HEADLINE INCOME STATEMENT (EUR million) FY 2024 FY 2023 Revenue 16,030 14,802 Net revenue 13,965 13,099 EBITDA 3,014 2,845 Operating margin 2,519 2,363 Non-current income and expenses 1 1 Net financial expenses (39) (20) Income taxes (619) (573) Associates (2) 6 Minority interests (9) (10) Headline
Slide 25: Headline Earnings per Share, Diluted
HEADLINE EARNINGS PER SHARE, DILUTED ‘ +71% +4.9%—— €7.30 €6.96 €6.35 — —— €5.02 a €4.27 > — — —— = — FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 iliac Fee GROUPE (See definitionin Appendix 25
Slide 26: Free Cash Flow
FREE CASH FLOW (EUR million) FY 2024 FY 2023 EBITDA 3,014 2,845 Repayment of lease liabilities and related interests (453) (423) Capex, net of disposals (235) (178) Interests paid and received 69 93 Tax paid (655) (669) Other items 98 (121) Free Cash Flow 1,838 1,547 before change in WCR See PUBLICI
Slide 27: Use of Cash
USE OF CASH (EUR million) FY 2024 FY 2023 Free cash flow before change in WCR 1,838 1,547 Change in WCR (161) (9) Acquisitions (incl. earn-out & net of disposals) (889) (174) Dividends paid (865) (735) (Purchase) / Sale of treasury shares (148) (189) Non-cash impact on net debt 91 (165) Reduction (I
Slide 28: Net Financial Debt
NET FINANCIAL DEBT (EUR million) FY 2024 FY 2023 Net financial debt, average 585 432 Net financial debt (cash), at end of period (775) (909) (Average net financial debt + Average lease liability) / EBITDA 1.0x 1.0x Qe PUBLICIS GROUPE 28
Slide 29: Dividend per Share
DIVIDEND PER SHARE +80% (—— +5.9% + €3.60 (2) €3.40 €2.90 €2.40 €2.00 Dividend pay-out ©) A w x 46.8% 47.8% 45.7% 48.9% 2020 2021 2022 2023 2024 ____Dividend to be fully paid in cash Qa Se PUBLICS (1) See definition in Appendix 29 (2) 2024 dividend to be submitted to May 27, 2025 AGM’s approval
Slide 30: 2025 Cash Allocation
2025 CASH ALLOCATION Free cash flow © €1.9-2.0 billion Dividends €1.8 billion €900-950m Bolt-on M&A €800-900m Share repurchase c. €150m 2024 2025 Guidance PUBLICIS ; , , Sue Before change in working capital so
Slide 31: Outlook
FY 2024 HIGHLIGHTS FINANCIAL REVIEW OUTLOOK Q&A
Slide 32: Building a Category of One
HT Advertising Group —_ BUILDING A CATEGORY OF ONE
Slide 33: A Category of One
A CATEGORY OF ONE THANKS TO FOUR UNIQUE COMPETITIVE ADVANTAGES Leadership in 1st-party data x Connected to Media and Intelligent Creativity Xx Powered by 25k engineers and consultants Through a xX flexible platform organization cpsilon Hates © inftuentiat 2(P MARS INE publicis sapient Power ee Count
Slide 34: Uniquely Positioned to Address Clients' Needs
UNIQUELY POSITIONED TO ADDRESS CLIENTS’ NEEDS Delivering ID-led marketing and business transformation SSS ee Driving price Future-proofing asa measure © advantage their model business lever
Slide 35: Priorities for FY 2025: Outperform for 6th Consecutive Year
PRIORITIES FOR FY 2025: OUTPERFORM FOR 6'H CONSECUTIVE YEAR FY’25 organic growth +4% to +5% driven by strong net new business performance of 2024 Net reported billings ($bn) - FY 2024«” 61 14 ome “01 37 Very solid +4% reaching +5% dn current macro if macro improves Led by strength of Connected Media
Slide 36: Priorities for FY 2025: Outperform for 6th Consecutive Year
PRIORITIES FOR FY 2025: OUTPERFORM FOR 6'# CONSECUTIVE YEAR FY’25 organic growth +4% to +5% Operating margin rate Free cash flow “ slightly above 18% €1.9 to €2.0 billion Q?’25 organic growth within FY’25 range GROUPE () Before change in working capital 36
Slide 37: Priorities for FY 2025: Seize Opportunity from OMC's Takeover of IPG
PRIORITIES FOR FY 2025: SEIZE OPPORTUNITY FROM OMC’S TAKEOVER OF IPG ee > Revenue mix Publicis is stronger than ever > Go-to-market thanks to our transformation oe > Platform organisation NEW BUSINESS TALENT Today... ol » 4 Restructuring Growth journey gl es - © =. Tomorrow... ; Competitive Job cuts
Slide 38: Priorities for FY 2025: Reinforce Category of One Through Bolt-on M&A
PRIORITIES FOR FY 2025: REINFORCE CATEGORY OF ONE THROUGH BOLT-ON M&A Since 2015, $12 billion invested in data, technology and Al * Innovative products and services to help clients differentiate and accelerate growth * Increasing our addressable market a In 2025, €800-900 million in targeted bolt-on
Slide 39: Conclusion
CONCLUSION Strong 2024 performance Became the world's largest advertising group ee Sustaining momentum in 2025 +4% to +5% organic growth | Slight operating margin improvement | Increasing free cash flow Focusing on executing strategy Doubling down on new business and talent Differentiating through M
Slide 40: Q&A
FY 2024 HIGHLIGHTS FINANCIAL REVIEW OUTLOOK Q&A
Slide 41: Appendix
APPENDIX
Slide 42: Net Revenue & Organic Growth Calculation
(EUR million) Ql Q2. Q3 Q4 NET REVENUE & ORGANIC GROWTH CALCULATION 2024 currency impact 2023 net revenue Currency impact (29) 13 (36) 2023 net revenue at 2024 exchange rate (a) 3,050 2024 net revenue before impact of (EUR million) Ql Q2 Q3 Q4 GBP 9 6 5 13 UsD® (22) 21 (18) 16 Other (16) (4) (23) (1
Slide 43: Reported Consolidated Income Statement
REPORTED CONSOLIDATED INCOME STATEMENT (EUR million) FY 2024 FY 2023 Net revenue 13,965 13,099 Pass-through revenue 2,065 1,703 Revenue 16,030 14,802 EBITDA” 3,014 2,845 Depreciation (495) (482) Operating margin 2,519 2,363 Amortization of intangibles arising from acquisitions (234) (268) Impairment
Slide 44: FY 2024 Bridge from Reported Consolidated to Headline Income Statement
FY 2024 BRIDGE FROM REPORTED CONSOLIDATED TO HEADLINE INCOME STATEMENT Amortization Impairment / Change in Main of intangibles Real estate fair value non- FY 2024 arisingfrom consolidation of financial current Earn-out FY 2024 (EUR million) P&L acquisitions charge assets items revaluation Headline N
Slide 45: FY 2023 Bridge from Reported Consolidated to Headline Income Statement
PUBLICIS GROUPE FY 2023 BRIDGE FROM REPORTED CONSOLIDATED TO HEADLINE INCOME STATEMENT Amortization Impairment / Change in Main of intangibles Real estate fair value non- FY 2023 arisingfrom consolidation of financial current Earn-out FY 2023 (EUR million) P&L acquisitions charge assets items) reval
Slide 46: Balance Sheet
BALANCE SHEET (EUR million) Dec. 31, 2024 Dec. 31, 2023 Goodwill and intangibles 14,912 13,380 Net right of use 1,735 1,614 Other fixed assets 974 958 Current and deferred tax (94) (120) Working capital (3,948) (3,781) TOTAL 13,579 12,051 Group equity 11,060 9,788 Provisions for risk & charges Net d
Slide 47: Gross Debt as of December 31, 2024
GROSS DEBT AS OF DECEMBER 31, 2024 Breakdown by maturity 2029 (EUR million) Total 2025 2026 2027 2028 onwards (2) Eurobond 20280) 817 817 Eurobond 2031?) 821 821 Earn out / Buy out 402 61 88 108 72 73 Other debt? 6 5 1 1 2 Total gross debt 2,869 881 93 109 890 896 > No covenant Re (1) Including fair
Slide 48: Debt as of December 31, 2024
DEBT AS OF DECEMBER 31, 2024 Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 20252) 814 814 Eurobond 202802) 817 817 31M) 821 Cash & marketable securities (3,644) (341) (2,041) (28) (1,234) Net debt (cash) (775) (345) 803 (21) (1,212) a (1) Including fair values of associated d
Slide 49: Liquidity as of December 31, 2024
LIQUIDITY AS OF DECEMBER 31, 2024 Dec. 31, 2024 Dec. 31, 2023 (EUR million) Total Drawn _ Available Available 5-year Revolving Credit Facility maturing 2029 2,000 - 2,000 2,000 Total Committed Facilities 2,000 2,000 2,000 Cash and Marketable Securities 3,644 4,250 Total liquidity 5,644 6,250 See ay
Slide 50: 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. These costs are mainly production and media costs, and out of pocket expenses. Organic growth: Change in net revenue excluding the i
Slide 51: Contact
CONTACT Press Amy Hadfield, Director of Global Communications | Email. amy.hadfield@publicisgroupe.com Investor Relations Jean-Michel Bonamy, Deputy CFO - Investor Relations | Email. jean-michel.bonamy@publicisgroupe.com Carla Foucaud | Email. carla.foucaud@publicisgroupe.com Loréne Fleury | Email.