Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Q1 2014 Earnings Presentation
32 slides from Publicis Groupe Sa's earnings presentation, Apr 17, 2014
Slide 1: Publicis
PUBLICIS
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements. The use of the words “aim(s)”, “expect(s)”, “feel(s)”, “will”, “may”, “believe(s)”, “anticipate(s)” and similar expressions in this presentation are intended to identify those statements as forward-looking. Forward-looking statements
Slide 3: Revenue Q1 2014
REVENUE Q1 2014 • Sequential improvement in Q1 2014 vs. Q4 2013 • Group: +3.3% in Q1 2014 vs. +0.7% in Q4 2013 • Europe*: +2.1% in Q1 2014 vs. +0.1% in Q4 2013 • China: +0.2% in Q1 2014 vs. -10.8% in Q4 2013 • Digital continues to post double-digit growth: +10.4% • Healthcare returns to solid double
Slide 4: Revenue Q1 2014
REVENUE Q1 2014 Revenue (EUR million) 2014 1,597 Organic Growth +3.3% 2013 1,563 • Revenue increase vs. 2013 : +2.2% • Forex Impact: -4.2% • At constant exchange rate: +6.8%
Slide 5: Revenue Q1 2014 by Geography
REVENUE Q1 2014 BY GEOGRAPHY (EUR million) Q1 2014 Q1 2013 Var. 2014 vs 2013 Q1 2014 Organic Growth Europe (*) 474 442 +7.2% +2.1% North America 795 776 +2.4% +4.3% BRIC + MISSAT (**) 190 201 -5.5% +0.5% RoW 138 144 -4.2% +5.1% Total 1,597 1,563 +2.2% +3.3% * Europe excluding Russia and Turkey ** MI
Slide 6: Growth by Country
GROWTH BY COUNTRY Organic Growth Q1 2014 > 5 % Arab Emirates, Argentina, Australia, Chile, Colombia, Germany, Italy, Poland, Russia, Singapore, Saudi Arabia, Thailand, Turkey From 0 to 5% Brazil, Canada, France, Greater China, Japan, Spain, Sweden, USA < 0% Greece, India, Israel, Mexico, Norway, Sou
Slide 7: Focus on Europe
Focus on Europe • France: Positive in Q1 2014, after 2 years of slowdown • Germany: Healthy Growth • Spain/Italy: Positive signs • UK: Lower incentives in the FMCG sector Phasing issue in Media buying Growth expected in Q2 2014
Slide 8: Revenue in USD
REVENUE IN USD (USD million) Q1 2014 Q1 2013 2,187 2,063 +6.0%
Slide 9: Digital
DIGITAL Q1 2014 Q1 2013 % of Grouprevenue 40.9% 36.9% EUR million €653 M €576 M Organic Growth +10.4%
Slide 10: Fast Growing Markets
FAST GROWING MARKETS Q1 2014 Q1 2013 % of Group revenue 22.2% 23.6% EUR million €354 M €369 M Organic Growth +2.8% Forex : -40 M€ ; -11.3% LBi acquisition: geographic footprint mainly in mature markets
Slide 11: Organic Growth by Region and Activity
ORGANIC GROWTH BY REGION AND ACTIVITY EUROPE* NORTH AMERICA BRIC + MISSAT** ROW TOTAL DIGITAL +10.2% +8.3% +30.1% +30.8% +10.4% ANALOG -1.2% 0.0% -3.3% 0.0% -0.9% Total +2.2% +4.3% +0.5% +5.1% +3.3% * Europe excluding Russia and Turkey ** MISSAT includes Mexico, Indonesia, Singapore, South Africa, T
Slide 12: Net Debt
NET DEBT Q1 2013 Q1 2014 300 Cash Average Net Debt in €m Net Debt in €m (March 31)
Slide 13: Gross Debt at March 2014
GROSS DEBT AT 31 MARCH 2014 Split by MATURITY (EUR million) Total Apr 2014 Apr 2015 Apr 2016 Apr 2017 Apr 2018 - Mar 2015 - Mar 2016 - Mar 2017 - Mar 2018 onwards Eurobond 2015 260 260 Oranes 41 41 Earn out / Buy out 354 213 82 38 18 Other debt* 135 34 23 78 Total gross debt 790 548 105 38 18 81 No
Slide 14: Liquidity at March 2014
LIQUIDITY AT 31 MARCH 2014 (EUR million) Total Drawn Available Available as of March 31, 2013 Committed Facilities 364-day revolving credit facilities 205 - 205 85 5-year revolving credit facility* 504 - 504 509 5-year syndicated facility (Club Deal) ** 1,200 - 1,200 1,200 Total Committed Facilities
Slide 15: Publicis Groupe Merger Update
PUBLICIS GROUPE MERGER UPDATE
Slide 16: Merger Update
MERGER UPDATE • Anti-trust Clearance obtained in the US, Europe and 12 countries around the world Anti-trust clearance still under review in China • Other key regulatory authorizations to be obtained before closing French tax agreement S4 to be filed (SEC) European Prospectus to be submitted to the
Slide 17: Publicis
PUBLICIS
Slide 18: ZenithOptimedia Forecasts
ZENITHOPTIMEDIA FORECASTS 2014 Forecast* as of April 2014 Worldwide (Media) +5.5% United States +4.9% Japan +1.9% Eurozone including +0.7% Germany +1.5% France +0.3% Italy -3.7% Spain +2.0% United Kingdom +5.8% China +11.6% Brazil +9.2% Ad Agencies Revenue ≈ 3.5% Growth Estimate * ZenithOptimedia Ma
Slide 19: Objectives 2014
OBJECTIVES 2014 SUCCESSFULLY COMPLETE THE PUBLICIS - OMNICOM MERGER ACCELERATE INTERNAL 2018 PLAN AS STAND ALONE
Slide 20: Organic Growth Objectives 2014
ORGANIC GROWTH OBJECTIVES 2014 • FY 2014 Organic Growth ³ 4% Q2 unfavorable comps H2 > H1 Mid single digit growth in China Strong growth in digital
Slide 21: Q&A
Q&A
Slide 22: Appendix
APPENDIX
Slide 23: Split of Revenue by Sector
SPLIT OF REVENUE BY SECTOR • Digital vs. Analog 28% 59% 45% 40% 40% 60% 46% +400bp +700bp +700bp +600bp +300bp -100bp +700bp 72% 41% 55% 60% 60% 40% 54% FMCG TMT AUTOMOTIVE RETAIL HEALTHCARE FINANCIAL LEISURE/ENERGY/LUXURY Analog Digital Based on 2,047 clients representing 83% of Group revenue
Slide 24: Revenue & Organic Growth
REVENUE & ORGANIC GROWTH Calculation – Q1 2014 (EUR million) Q1 2013 Revenue 1,563 Currency impact (67) 2013 Revenue at 2014 exchange rate (a) 1,496 Revenue before impact of acquisitions (1) (b) 1,545 Revenue from acquisitions (1) 52 2014 Revenue 1,597 Currency impact (EUR million) (EUR million) Q1
Slide 25: Gross Debt at March 2014
GROSS DEBT AT 31 MARCH 2014 • Split by CURRENCY (EUR million) Total EURO USD GBP Others Eurobond 2015 260 260 Oranes 41 41 Earn out / Buy out 354 31 76 41 206 Other debt* 135 1 78 (2) 58 Total gross debt 790 333 154 39 264 Cash & marketable securities** (761) (700) 517 (23) (555) Net debt (cash) 29
Slide 26: Net Debt at March 2014
NET DEBT AT 31 MARCH 2014 • Split by RATE (EUR million) Total Earn-out / Buy-out Fixed rate Variable rate Eurobond 2015 260 260 Oranes 41 41 Other debt* 135 78 57 Total gross debt excluding earn out/buy out 436 379 57 Earn out / Buy out 354 354 Cash & marketable securities (761) (761) Net debt (cash
Slide 27: Q1 2014 - Revenue by Activity
Q1 2014 - REVENUE BY ACTIVITY Media 15% 17% in 2013 Digital 41% 37% in 2013 SAMS 15% 17% in 2013 Advertising 29% 29% in 2013
Slide 28: Revenue by Sector
REVENUE BY SECTOR Q1 2014 3% 4% 6% 11% 14% 14% 15% 33% FMCG TMT Healthcare Automotive Financial Leisure/Energy/Luxury Retail Other Q1 2013 5% 4% 5% 11% 13% 12% 16% 34% Based on 2,047 clients representing 83% of Group revenue
Slide 29: Revenue by Geography in USD
REVENUE BY GEOGRAPHY IN USD - (USD million) Q1 2014 Q1 2013 Var. 2014/2013 Europe (*) 649 584 +11.1% North America 1,089 1,024 +6.3% BRIC + MISSAT (**) 260 265 -1.9% RoW 189 190 -0.5% Total 2,187 2,063 +6.0% * Europe excluding Russia and Turkey ** MISSAT includes Mexico, Indonesia, Singapore, South
Slide 30: Revenue by Geography - Q1 2014 - Old Split
REVENUE BY GEOGRAPHY - Q1 2014 - Old split (EUR million) Q1 2014 Q1 2013 Q1 organic growth Q1 2014 vs. Q1 2013 Europe 494 464 +2.5% +6.5% North America 795 776 +4.3% +2.4% Asia Pacific 177 183 +0.4% -3.3% Latin America 92 101 +5.0% -8.9% Middle East Africa 39 39 +1.6% - Total 1,597 1,563 +3.3% +2.2%
Slide 31: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-Looking Statements This presentation contains forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning Omnicom Group, Publicis Groupe, Publicis Omnicom Group, the proposed transactions and other matters
Slide 32: Safe Harbor Statement
SAFE HARBOR STATEMENT Important Additional Information Will be Made Available in an AFM Approved Prospectus Publicis Omnicom Group will make publicly available a prospectus, approved by the Dutch financial markets regulator (Stichting Autoriteit Financiële Markten or “AFM”), with respect to the issu