Publicis Groupe Sa · EURONEXT:PUB
Publicis Groupe Sa — H1 2021 Earnings Presentation
46 slides from Publicis Groupe Sa's earnings presentation, Jul 22, 2021
Slide 1: H1 2021 Results
H1 2021 RESULTS 22 July 2021 ig PuBLICIS
Slide 2: Forward-looking statements 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 materially fr
Slide 3: H1 2021 Highlights
H1 2021 HIGHLIGHTS H1 2021 RESULTS STRATEGIC UPDATE Q&A PuBLICIS
Slide 4: Full recovery in H1
FULL RECOVERY IN H1 STRONG PERFORMANCE IN Q2 STRONG H1 Q2 AHEAD OF RECOVERY EXPECTATIONS * +9.7% organic growth * +17.1% organic growth ° Full recovery of revenue lost in 2020 * More than recovering after -13.0% in after -8.0% in H1 2020 Q2 2020 ° Significant improvement in all * Mass-reopenings in
Slide 5: New acceleration in U.S. growth in Q2
NEW ACCELERATION IN U.S. GROWTH IN Q2 U.S. organic growth accelerating in Q@2 +7.4% vs. 2019 PUBLICIS GROUPE Q2 organic growth at +15.2% after outperforming peers average by 500bps in Q1 * High demand for 1*t party data management and Direct-to- Consumer products and services * Epsilon growing +31.1
Slide 6: Asia accelerating, Europe bouncing back
ASIA ACCELERATING, EVROPE BOUNCING BACK * Q2 organic growth at +13.6%, after -5.7% in Q2 2020 Asia - Pacific * China accelerating to +8.0% * Remarkable performance in India despite third-wave of virus in Q2 * +23.0% organic in Q2™, rebounding from a low base and mirroring the lift of lockdowns Europ
Slide 7: Continued strong financial ratios in H1
CONTINUED STRONG FINANCIAL RATIOS IN H1 Operating margin rate 16.5% +350bps vs. H1 2020 +150bps vs. H1 2019 2 Free Cash Flow” €605m vs. €495m in H1 2020 vs. €491m in H1 2019 Average net debt €1.6bn vs. €3.7bn in H1 2020 Operating margin rate at 16.5%, highest on record in a first half period, benefi
Slide 8: #1 in new business rankings
#11IN NEW BUSINESS RANKINGS‘) THANKS TO STRONG H1 MOMENTUM Net Media New Business STELUANTIS Humana Vintled Load Rank Group Value in H1 2021 (incl. retentions) - $m® Media Media Media Media Global Global Global EMEA 1 Publicis 2,615 , . INSPIRE 2 Interpublic 1,430 LOREAL ya. oe I SNCF] : Media Data
Slide 9: H1 2021 Highlights
H1 2021 HIGHLIGHTS H1 2021 RESULTS STRATEGIC UPDATE Q&A PuBLICIS
Slide 10: Net revenue
NET REVENUE (EUR million) Ql Q2 H1 2021 net revenue 2,392 2,539 4,931 cove - — a cam __ _ —— ; ~ _ Reported growth -3.6% +10.7% +3.3% Organic growth +2.8% +17.1% +9.7% Recovery ratio” 100% 102% 101% Pusticis (1) Recovery ratio calculated as: 100*[1 + organic growth (n-1)]*[1 + organic growth (n)] ‘G
Slide 11: Q2 2021 net revenue by geography
Q2 2021 NET REVENUE BY GEOGRAPHY 2021 Organic Recovery (EUR million) Q2 2021 Q2 2020 __—ivs. 2020 growth ratio? North America 1,527 1,458 +4. 7% +15. 1% 106% Europe ——_ aa “0 28 3% a5 ome “saxo ve la pacific ~=~C~«S SSCS a7 7% _ a 6% . Tom. a idle East Aes 6 ne. % a2 om — oon a Total 2,539 2,293 +10
Slide 12: Q2 2021 performance - North America
1S GROUPE Q2 2021 PERFORMANCE - NORTH AMERICA 2021 Organic Recovery (EUR million) Q2 2021 Q2 2020 __—ivs. 2020 growth ratio? North America 1,527 1,458 +4.7% +15.1% 106% US + 58% of Groupe net revenue + Organic growth: +15.2% + Recovery ratio: 107% + Media: strong performance in digital media, includ
Slide 13: Q2 2021 performance - Europe
PUBLICIS GROUPE 2021 PERFORMANCE - EUROPE 2021 Organic Recovery (EUR million) Q2 2021 Q2 2020 __—ivs. 2020 growth ratio? Europe 634 510 424.3% +23.0%2 94% UK France Germany 9% of Groupe net revenue Organic growth: +10.0% Recovery ratio: 90% Strong double-digit growth in Creative and Media Epsilon al
Slide 14: Q2 2021 performance - Rest of World
Q2 2021 PERFORMANCE - REST OF WORLD 2021 Organic Recovery (EUR million) Q2 2021 Q2 2020 __—ivs. 2020 growth ratio? Asia Paci 253 215 +17.7% +13.6% 107% Middle East Africa 418.3% +22.8% 94% Latin America 54 50 +8.0% +15.9% 92% Asia Pacific Middle East Africa Latin America + 10% of Groupe net revenue
Slide 15: H1 2021 net revenue by geography
H1 2021 NET REVENUE BY GEOGRAPHY 2021 Organic Recovery (EUR million) H1 2021 H1 2020 vs. 2020 growth ratioY North America 3,032 3,013 +0.6% +9.7% 106% Europe 1,195 1,088 +9.8% +10.0%2 92% Asia Pacific 470 434 +8. 3% _*9. 8% 106% © “Wage cz cast atrica —= =: 4 3% — va 36 —— 2% - ot an Aone, a... = 2
Slide 16: H1 2021 performance by industry
H1 2021 PERFORMANCE BY INDUSTRY Net revenue growth per client industry Energy & Leisure manufacturing & travel Net revenue split Public sector +3% -4% Automotive & Other +12% +9% Retail 4% +14% Non-food 15% Financial consumer products 12% 42% +9% 12% 14% Food & beverage TMT 3,250 main clients repres
Slide 17: Consolidated income statement
CONSOLIDATED INCOME STATEMENT (EUR million) H1 2021 H1 2020 Revenue 5,493 5,278 Net revenue 4,931 4,774 EBITDA © 1,052 923 Operating margin 815 622 Non-current income and expenses - 5 Net financial expenses (82) (88) Income taxes (184) (133) Associates - (2) Minority interests 6 13 Headline Group Ne
Slide 18: Operating margin
OPERATING MARGIN H1 2020 FX/perimeter H1 2020 (EUR million) H1 2021 (comp.) impacts (reported) Net revenue 4,931 4,496 278 4,774 Personnel costs (3,162) (2,988) 167 (3,155) As a % of net revenue 64.1% 66.4% 3Obps 66.1% Restructuring (12) (66) 3 (69) Other operating expenses (446) (431) 23 (454) Cost
Slide 19: H1 2021 - Change in operating margin
H1 2021 - CHANGE IN OPERATING MARGIN AS A % OF NET REVENUE G&A savings Net impact of 230bps improvement in personnel costs of 50bps 20bps@) { t50bps | 16.5% ne 12.7% Dalal tateteleetelae teeter - 12020 Fixed People Freelance Restructuring Other Cost of sales Depreciation H1 2021 comparable personnel
Slide 20: Net financial income (expense)
NET FINANCIAL INCOME (EXPENSE) (EUR million) H1 2021 H1 2020 Interest on net financial debt (45) (48) Interest on lease liabilities (35) (40) Foreign exchange gain (loss) 1 4 Other financial expenses“ (3) (4) Soi ne es atin “SS sven Se rei (1) Includes provisions on financial assets, dividends outsi
Slide 21: Income tax and effective tax rate
INCOME TAX AND EFFECTIVE TAX RATE (EUR million) H1 2021 H1 2020 Reported income taxes 135 39 Reversal in income tax on amortization of intangibles arising from acquisitions 32 35 Reversal in income tax on impairment and real estate consolidation 22 58 Reversal in income tax on other items (5) 1 Head
Slide 22: Headline earnings per share, diluted
HEADLINE EARNINGS PER SHARE, DILUTED‘ €1.98 = (CCC H1 2019 H1 2020 Groure (1) See definition in Supplemental Information oy
Slide 23: Free cash flow
FREE CASH FLOW (EUR million) H1 2021 H1 2020 Change EBITDA® 1,052 923 129 Repayment of lease liabilities and related interests (179) (234) 55 Capex, net of disposals “ (50) (73) 23 Interests paid and received (82) (81) qd) Tax paid (163) (74) (89) Other OMS eeenennenmmnnneennnannennnnnnnmnin el enem
Slide 24: Change in net debt
(EUR million) H1 2021 H1 2020 Free Cash Flow before change in WCR “ 605 495 “Change in WER Gas eS Acquisitions (net of disposals) (8) (14) Earn-out & Buy-out (68) (28) Dividends paid (2) (4) Share buy-back, net of sales 2 3 Exercise of warrants 7 - _Non-cas ACE ON Net de suman n (Increase) in net de
Slide 25: Net financial debt
NET FINANCIAL DEBT June 30, Dec. 31, June 30, (EUR million) 2021 2020 2020 Net Financial Debt, at end of period 1,362 833 3,221 Net Financial Debt, average 1,616 3,286 3,684 (Average net financial debt + Average Lease liability) / EBITDA 1.9x 2.6x 2.8x PUBLICIS GROUPE 24
Slide 26: Strategic Update
H1 2021 HIGHLIGHTS H1 2021 RESULTS STRATEGIC UPDATE Q&A PuBLICIS
Slide 27: Our focus in H2: leveraging our differentiated model
OUR FOCUS IN H2: LEVERAGING OUR DIFFERENTIATED MODEL TO UNLOCK SUSTAINABLE GROWTH GROUPE TO MAINTAIN STRONG FINANCIAL RATIOS TO BUILD A BETTER FUTURE WITH OUR PEOPLE 26
Slide 28: Unlock sustainable growth for our clients and ourselves
UNLOCK SUSTAINABLE GROWTH FOR OUR CLIENTS AND OURSELVES s Identity resolution to understand DATA AND TECH ASSETS EPSILON _» customers better than anyone else in a TO DIFFERENTIATE ~ cookie-less world AND WIN INA PLATFORM _ : ENVIRONMENT publicis “Own digital ecosystems to go direct and sapient ~~ wi
Slide 29: Acquisition of CitrusAd
ACQUISITION OF CITRUSAD: CREATING A NEW GENERATION OF IDENTITY-LED RETAIL MEDIA cies TECH CORE ID: 250M RETAIL MEDIA PLATFORM TRANSACTION-VERIFIED IDS Booming retail media segment rising with e-commerce, set to double its size by 2025 from $30bn today ONSITE EXPERTISE OFFSITE EXPERTISE Decisive comp
Slide 30: Unlock sustainable growth for our clients and ourselves
UNLOCK SUSTAINABLE GROWTH FOR OUR CLIENTS AND OURSELVES . we ° Full organic recovery expected in * Acomplete offer with the ability to 2021, to reach 7% growth in FY 2021 capture a disproportionate share co after -6.3% in 2020 of our clients’ investment in data, . . . . ao digital media and Direct-t
Slide 31: Maintain strong financials
MAINTAIN STRONG FINANCIALS THANKS TO OUR PLATFORM ORGANIZATION OUR COUNTRY OUR SHARED SERVICES MODEL BACKBONE One P&L per country 5. Re:Sources Global Delivery Centers to accelerate cross-fertilization and allocate resources to to provide agility and growing segments support all operations Manage in
Slide 32: Build the future of work with our people
BUILD THE FUTURE OF WORK WITH OUR PEOPLE MORE FLEXIBLE MORE RESPONSIBLE * Organize return to the office in H2 » Progress on DE&l agenda to create the most diverse and inclusive environment Offi h . | f » Launch of the Once and For All Office as the primary place o coalition to increase media work to
Slide 33: Conclusion & outlook
CONCLUSION & OUTLOOK Strong organic H1 performance at +9.7%, fully recovering 2019 level with both Q1 and Q2 above expectations Full organic recovery expected in 2021 translating into 7% FY organic growth assuming no major deterioration in sanitary conditions Upgrade in 2021 operating margin guidanc
Slide 34: Q&A
H1 2021 HIGHLIGHTS H1 2021 RESULTS STRATEGIC UPDATE Q&A
Slide 35: Appendix
APPENDIX PuBLICIS
Slide 36: Net revenue & organic growth calculation
NET REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Ql Q2 2021 Currency impact 2020 net revenue (EUR vn million) Ql Currency impact 2 (151) GBP @ (2) 2020 net revenue at 2021 exchange rate (a) oe sms USD @ (122) 2021 net revenue before impact of acquisitions 2 (b) 2,395 Other (27) Net revenue fro
Slide 37: Condensed consolidated income statement
CONDENSED CONSOLIDATED INCOME STATEMENT (EUR million) H1 2021 H1 2020 Net revenue 4,931 4,774 Pass-through revenue 562 504 Revenue 5,493 5,278 EBITDA 1,052 923 Depreciation (237) (301) Operating margin 815 622 Amortization of intangibles arising from acquisitions (126) (142) Impairment / Real estate
Slide 38: Pass-through revenue H1 2021 note
3 7 37 (1) Pass-through revenue of €562million in H1 2021 are split between €557 million as pass-through costs and €4 million as depreciation
Slide 39: Pass-through revenue H1 2020 note
(1) Pass-through revenue of €504 million in H1 2020 are split between €454 million as pass-through costs and €50 million as depreciation 38
Slide 40: Debt as of June 30, 2021
DEBT AS OF JUNE 30, 2021 Breakdown by maturity July 2021- July 2022- July 2023- July 2024- July 2025 (EUR million) Total June 2022 June 2023. June2024 June 2025 Onwards Eurobond 2023 497 - - 497 - - Eurobond 2024 602 - - - 602 - Eurobond 2025 “) @) 740 - - - 740 - Eurobond 2031 () @) 740 - - - - 740
Slide 41: Balance sheet
BALANCE SHEET June 30, December 31, June 30, (EUR million) 2021 2020 2020 Goodwill and intangibles 12,583 12,367 13,378 Net right of use 1,544 1,645 1,831 Other fixed assets 890 882 903 Current and deferred tax (319) (326) (371) Working capital (2,851) (3,731) (2,423) TOTAL 1,847 10,8370 13,318 Grou
Slide 42: Net debt as of June 30, 2021 - by currency
NET DEBT AS OF JUNE 30, 2021 Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 2021 a om, 899 a : Eurobond 2023 497 497 - a - Euroboi 802, 602 a a : Eurobond 2025 “) @) 740 Eurobond 20310. seen mane : 740 en . Earn-out / Buy-out 231 3 135 14 79 Other debt ean a Al, 28 Cash & mark
Slide 43: Net debt as of June 30, 2021 - by rate
NET DEBT AS OF JUNE 30, 2021 Breakdown by rate (EUR million) Total Earn-out / Buy-out Fixed rate Floating rate Eurobond 2021 699 - 699 - ‘Eurobond 2023 497 - 497 - ‘Eurobond 2024 602 - 602 - ‘Eurobond 2025 «0 @ 740 - 740 - Eurobond 2028 “) @) 741 - 741 - 740 - 740 - ‘Eurobond 2031 Other debt Total g
Slide 44: Liquidity as of June 30, 2021
LIQUIDITY AS OF JUNE 30, 2021 June 30, 2021 June 30, 2020 (EUR million) Total Drawn ___ Available Available 364-day revolving credit facilities 45 - 45 165 5-year revolving credit facilities 442 - 442 445 5-year syndicated facility (Club Deal) 2,000 - 2,000 1,017 Total Committed Facilities 2,487 - 2
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. + 33 144 43 77 88 / Email. alessandra.girolami@publicisgrou