Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — Publicis Groupe Act — H1 2024 Earnings Presentation
46 slides from Publicis Groupe Sa's earnings presentation, Jul 18, 2024
Slide 1: H1 2024 Results
H1 2024 RESULTS 18 July 2024 ig PuBLICIS
Slide 2: H1 2024 Highlights
H1 2024 HIGHLIGHTS H1 2024 RESULTS STRATEGIC UPDATE Q&A PuBLICIS
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: Groupe Key Highlights
GROUPE 3 KEY HIGHLIGHTS Gaining market share outperforming peers by close to 400bps “ Maintaining industry-leading financial ratios Upgrading FY’24 organic growth guidance (1) On average, based on consensus 4
Slide 5: Delivering a Solid Performance...
DELIVERING A SOLID PERFORMANCE... H1 2024 Q2 2024 Net revenue organic growth +5.4% ¥ Revenue like-for-like growth © +7.4% Ahead of expectations Net revenue organic growth +5.6% after +7.1% in Q2’23 accelerating after +5.3% in QUV’24 LIcIs GROUPE () See definition in Appendix
Slide 6: ...Thanks to Uniquely Balanced Revenue Mix
---THANKS TO UNIQUELY BALANCED REVENUE MIX In a macro environment that remains challenging Double-digit growth driven by high demand for data-led marketing c. 50% of net revenue Continued softness as expected c. 16% of net revenue Sustained resilience c. 1/3 of net revenue epsilon’ Q2 +6.1% after +6
Slide 7: Strength of Offer Visible Across All Regions
STRENGTH OF OFFER VISIBLE ACROSS ALL REGIONS U.S. Q2 +5.3% after +5.0% Q2’23 Continued strength of combined Epsilon and Media up double digits organically PUBLICIS GROUPE Europe Q2 +4.2% after +15.2% Q2’23 Double-digit growth of Media and Creative in the UK High comparable for Publicis Sapient Asia-
Slide 8: Industry-Leading Financial KPIs
INDUSTRY-LEADING FINANCIAL KPIs THANKS TO PLATFORM ORGANIZATION Operating margin rate maintained at a record high * while investing in talent * and c. €45 million spent in H1 2024 on Al strategy presented at the beginning of the year Accelerating bolt-on acquisitions to reinforce existing capabiliti
Slide 9: ed it for the centen
We} ed it for the centen ry, but we just couldn't wait PUBLICIS GROUPE
Slide 10: H1 2024 Highlights
H1 2024 HIGHLIGHTS H1 2024 RESULTS STRATEGIC UPDATE Q&A PuBLICIS
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS 2024 vs. Organic (EUR million) H1 2024 H1 2023 2023 growth Revenue 7,650 7,105 47.7% Net revenue 6,688 6,318 +5.9% +5.4% Operating margin 1,160 1,093 +6.1% Operating margin rate 17.3% 17.3% Obp Headline group net income “ 857 813 +5.4% Free cash flow before change in WCR “ 744 7
Slide 12: Net Revenue
NET REVENUE (EUR million) Ql Q2 H1 2024 net revenue 3,230 3,458 6,688 2023 net revenue 3,079 3,239 6,318 Reported growth +4.9% +6.8% +5.9% Organic growth +5.3% +5.6% +5.4% PUBLICIS GROUPE 12
Slide 13: Q2 2024 Net Revenue by Geography
Q2 2024 NET REVENUE BY GEOGRAPHY 2024 Organic (EUR million) Q2 2024 Q2 2023 vs. 2023 growth North America 2,104 1,955 +7.6% Europe 856 809 . . . Ale Pacinie a S06 ~~ —_— $00 sanunnnnuniunnunnennuntinsuntunsunnennannnnnnnn “Middle East Africa . : 7 . a es = ee oo ~ 7 a - vanentuennnnnnnen ’ — . - — n
Slide 14: Q2 2024 Performance - North America
PUBLICIS GROUPE Q2 2024 PERFORMANCE - NORTH AMERICA 2024 Organic (EUR million) Q2 2024 Q2 2023 vs. 2023 growth North America 2,104 1,955 +7.6% +5.2% US + 59% of Groupe net revenue + Organic growth: +5.3% + Media: double-digit growth in Q2’24, on top of double digits in Q2’23 and Q2’22 + Epsilon: mid
Slide 15: Q2 2024 Performance - Europe
Q2 2024 PERFORMANCE - EUROPE 2024 Organic (EUR million) Q2 2024 Q2 2023 vs. 2023 growth Europe 856 809 +5.8% +4.2% UK France Germany Central & Eastern Europe 9% of Groupe net revenue Organic growth: broadly stable 6% of Groupe net revenue Organic growth: +4.2% Double-digit growth in Media Mid-single
Slide 16: Q2 2024 Performance - Rest of World
Q2 2024 PERFORMANCE - REST OF WORLD 2024 Organic (EUR million) Q2 2024 Q2 2023 vs. 2023 growth Asia Pacific 306 300 +2.0% +7.7% Middle East Africa Latin America 92 84 100 91 +9.9% +9.5% +9.1% +18.9% Asia Pacific 9% of Groupe net revenue Organic growth: +7.7% Media at double-digit growth after double
Slide 17: H1 2024 Net Revenue by Geography
H1 2024 NET REVENUE BY GEOGRAPHY 2024 Organic (EUR million) H1 2024 H1 2023 vs. 2023 growth North America 4,112 3,893 +5.6% +5.0% Europe 1,649 1,552 +6.3% +5.1% Asia Pacific 572 550 +4.0% +7.0% Middle East Africa 190 179 +6. 1% +6. 6% aa Amerie | a on er o* _ om a — .. = 7 Sy a = 7 — PUBLICIS GROUPE
Slide 18: H1 2024 Performance by Industry
PUBLICIS GROUPE H1 2024 PERFORMANCE BY INDUSTRY Net revenue growth per client industry™ Leisure neroy Public & travel ee . sector & +18% ° Automotive Other +6% -4% 15% ° Retail -4% Healthcare +26% Non-food consumer products +35% TMT Financial +11% 5% Food & beverage 46% () Growth at constant currenc
Slide 19: Operating Margin
OPERATING MARGIN H1 2023 FX/perimeter H1 2023 (EUR million) H1 2024 (comp.) impacts (reported) Net revenue 6,688 6,334 16 6,318 Personnel costs (4,457) (4,169) (14) (4,155) As a % of net revenue 66.6% 65.8% 65.8% Restructuring (41) (44) 1 (45) Other operating expenses (789) (784) (O) (783) Depreciat
Slide 20: H1 2024 - Change in Operating Margin
H1 2024 - CHANGE IN OPERATING MARGIN AS A % OF NET REVENUE Al investment = c. €45 million (7Obps) in H1 2024 17.3% —— +0bp 17.3% 75bps +20bps 17.3% L] +55bps TY H1 2023 FX and H1 2023 Personnel costs Other operating _ Depreciation H1 2024 (reported) perimeter — (comparable) incl. restructuring expen
Slide 21: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (EUR million) H1 2024 H1 2023 Change Revenue 7,650 7,105 47.7% Net revenue 6,688 6,318 +5.9% EBITDA © 1,401 1,335 +4,9% Operating margin 1,160 1,093 +6.1% Net financial expenses (7) (6) Income taxes (289) (272) % effective tax rate 24.9% 24.8% Associates (3) 3 Minority
Slide 22: Headline Earnings per Share, Diluted
HEADLINE EARNINGS PER SHARE, DILUTED “ €2.88 €2.23 H1 2021 H1 2022 H1 2023 H1 2024 CUT ae PUBLISIS (1) See definition in Appendix “
Slide 23: Free Cash Flow
FREE CASH FLOW (EUR million) H1 2024 H1 2023 Change EBITDA © 1,401 1,335 66 Repayment of lease liabilities and related interests (224) (207) (17) Capex, net of disposals” (118) (75) (43) Interests paid and received 13 17 (4) Tax paid (376) (386) 10 Other items ce Free cash flow before change in WCR
Slide 24: Use of Cash
USE OF CASH (EUR million) H1 2024 H1 2023 Free cash flow before change in WCR “ 744 725 (1,629) (1,053) “Change in WCR, Acquisitions (incl. earn-out & net of disposals) (224) (170) Dividends paid (9) (7) Share buy-back, net of sales/ exercise of warrants (119) (193) Non-cash impact on net debt 229 (
Slide 25: Net Financial Debt
NET FINANCIAL DEBT June 30, Dec. 31, June 30, (EUR million) 2024 2023 2023 Net financial debt, average (LTM) 375 432 498 Net financial debt, at end of period 99 (909) 226 (Average net financial debt + 1.0x 1.0x Lx Average lease liability) / EBITDA (LTM) PUBLICIS GROUPE 25
Slide 26: H1 2024 Highlights
H1 2024 HIGHLIGHTS H1 2024 RESULTS STRATEGIC UPDATE Q&A PuBLICIS
Slide 27: Upgrading 2024 Organic Growth Guidance
UPGRADING 2024 ORGANIC GROWTH GUIDANCE Sustainable industry outperformance Potential to accelerate further in H2’24 despite uncertain macroeconomic conditions Upgrading FY’24 organic growth guidance Accelerating vs. 4Y CAGR of +4.7% PUBLICIS
Slide 28: Outlook 2024
OUTLOOK 2024 FY’24 organic growth +5% to +6% New floor +5% New stretch +6% in current macro conditions assuming improved macro conditions * Ongoing delays in client DBT projects * Clients resuming capex spend on DBT projects eva p oy * Fewer reductions in classic advertising spend * Reduction in cla
Slide 29: In a Position to Upgrade 2024 Organic Growth Guidance
IN A POSITION TO UPGRADE 2024 ORGANIC GROWTH GUIDANCE THANKS TO OUR TRANFORMATION 3 strategic bets to shift from a communication partner to a transformation partner €9bn investment Shifting to country model Transforming culture in Data and Tech Connecting data, creative, Embarking people media and t
Slide 30: Reasons for Our Confidence
3 REASONS FOR OUR CONFIDENCE GOING INTO THE SECOND HALF OF THE YEAR Gaining market share thanks to our go-to-market Leading on personalization at scale Partnering with clients on Al-led transformation #1 in NB over the last 5 years... 2019 - HI 2024 Cumulative net new business billings ? 14.2 5.4 2.
Slide 31: Conclusion
CONCLUSION Q2’24 organic growth ahead of expectations Demonstrates strength and sustainability of our model Outperforming industry | Gaining market share *% Industry-high financial KPls | Investing in talent and Al Upgrade in FY’24 organic growth guidance Accelerating vs. 4-year CAGR ina still very
Slide 32: Appendix
APPENDIX PuBLICIS
Slide 33: Net Revenue & Organic Growth Calculation
NET REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Ql Q2 2023 Currency impact 2023 net revenue 3,079 3,239 a (EUR million) Ql Currency impact 2 GBP @ 9 2023 net revenue at 2024 exchange rate (a) “ USD @ (22) 2024 net revenue before impact of acq Other (16) ions, net of disposals 18 25 Total (29)
Slide 34: Reported Consolidated Income Statement
PUBLICIS GROUPE REPORTED CONSOLIDATED INCOME STATEMENT (EUR million) H1 2024 H1 2023 Net revenue 6,688 6,318 Pass-through revenue 962 787 Revenue 7,650 7,105 EBITDA 1,401 1,335 Depreciation (241) (242) Operating margin 1,160 1,093 Amortization of intangibles arising from acquisitions (123) (142) Imp
Slide 35: Net Financial Income (Expense)
NET FINANCIAL INCOME (EXPENSE) (EUR million) H1 2024 H1 2023 Interest (expense)/income on net financial debt 39 42 Interest on lease liabilities (42) (39) Foreign exchange gain (loss) 2 (3) Other financial expenses “ (6) (6) oI nn ey ee 3 even < - even (1) | Includes provisions on financial assets,
Slide 36: Income Tax and Effective Tax Rate
INCOME TAX AND EFFECTIVE TAX RATE (EUR million) H1 2024 H1 2023 Reported income taxes 256 205 Reversal in income tax on amortization of intangibles arising from acquisitions 31 37 Reversal in income tax on impairment and real estate consolidation N 29 Reversal in income tax on other items (9) 1 Head
Slide 37: Bridge from Reported to Condensed Comparable Income Statement
BRIDGE FROM REPORTED TO CONDENSED COMPARABLE INCOME STATEMENT H1 2024 H1 2023 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 6,688 6,688 6,318 16 6,334 Pass-through revenue 962 (962) 787 (787) Rev
Slide 38: H1 2024 Condensed Consolidated Income Statement
H1 2024 CONDENSED CONSOLIDATED INCOME STATEMENT Amortization Impairment / Change in fair ofintangibles Real estate value of H1 2024 arising from consolidation _ financial Main Capital Earn-out H1 2024 (EUR million) P&L acquisitions charge assets Gain/loss revaluation Headline Net revenue 6,688 6,688
Slide 39: H1 2023 Condensed Consolidated Income Statement
H1 2023 CONDENSED CONSOLIDATED INCOME STATEMENT Amortization Impairment / Change in fair ofintangibles Real estate value of H1 2023 arising from consolidation financial Main Capital Earn-out H1 2023 (EUR million) P&L acquisitions charge assets Gain/loss revaluation Headline Net revenue 6,318 6,318 P
Slide 40: Gross Debt as of June 30, 2024
GROSS DEBT AS OF JUNE 30, 2024 Breakdown by maturity July 2024- July 2025- July 2026- = July 2027- — July 2028 (EUR million) Total June 2025 June 2026 June 2027 June 2028 Onwards Eurobond 2024 600 600 - - - - Eurobond 2025 “) @) 792 792 - - - - Eurobond 2028 “? 2) 806 Eurobond 2031“ @ 819 - - - - 81
Slide 41: Balance Sheet
BALANCE SHEET June 30, June 30, (EUR million) 2024 Dec. 31, 2023 2023 Goodwill and intangibles 13,713 13,380 13,730 Net right of use 1,640 1,614 1,672 Other fixed assets 987 958 989 Current and deferred tax (7) (120) (183) Working capital (3,141) (3,781) (3,529) TOTAL 13,192 12,051 12,679 Group equi
Slide 42: Net Debt as of June 30, 2024 - Breakdown by Currency
NET DEBT AS OF JUNE 30, 2024 Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 2024 a om SOY, 800 a Eurobond 2025 “ (2) 792 - 792 _Eurobond 2028 (0 @ a om, : 806 _Eurobond 20310 @ a can OY, : B19 cen Earn-out / Buy-out a moll Other debt? ee as (3,082) Net debt (cash) 99 (1,623) (
Slide 43: Net Debt as of June 30, 2024 - Breakdown by Rate
NET DEBT AS OF JUNE 30, 2024 Breakdown by rate (EUR million) Total Earn-out / Buy-out Fixed rate Floating rate Eurobond 2024 600 - 600 - “Eurobond 2025 © @ Eurobond 2028 “) @ “Eurobond 20310 @ Other debt 3 - 21 (1g) Total gross /buy-o! - 3,038 (18) Earn-out / Buy-out 161 - - Cash & marketable securi
Slide 44: Liquidity as of June 30, 2024
LIQUIDITY AS OF JUNE 30, 2024 Proforma June 30, after June 30, 2024 amended and 2023 extended Facility RCF on 12th (EUR million) amount Drawn Available July 2024 Available 1,579 - 1,579 5-year revolving cred facility maturing 2029 2,000 2,000 2,000 2,000 Facilities . Cash and Marketable Securities 3
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 Amy Hadfield, Group Communications Director | Tel. + 33 144 43 70 75 | Email. amy.hadfield@publicisgroupe.com Investor Relations Jean-Michel Bonamy | Email. jean-michel.bonamy@publicisgroupe.com Loréne Fleury | Email. lorene.fleury@publicisgroupe.com Maxine Miller | Email. maxine.mille