Ipsos - The impact of the Coronavirus epidemic (Covid-19) on
activity
Paris, April 8th, 2020 – During
the first 10 weeks of 2020, Ipsos had its best start of the year
since 2011. The order book was more than 5% higher and the
prospects for winning new contracts were at a particularly elevated
level. Only China and a few other Asian markets were at a
standstill.
The situation brutally changed around in mid-March in many parts
of the world. Obviously, the triggering factor was the confinement
which was put in place in the main countries of Europe, in the
United States and in other countries, while being only at best
relaxed in some Asian countries.
For the month of March as a whole, including the first two
weeks, orders were down 40%. If we exclude the first two weeks of
the month, the drop is slightly more than 50%. That said, new
orders held up better, with declines of around 20% and 25%
respectively. The difference comes from a very significant volume
of cancellations and postponements.
For an order book in mid-March close to a billion euros,
postponements and cancellations represented around 7% of this
total, compared to a usual level of less than 2%.
Ipsos' activity is hampered by 3 main factors:
- the
difficulties, significant or major as the case may be, that
businesses and client institutions encounter;
- the
uncertainties and misunderstandings that the situation
generates;
- the very
direct consequences of confinement which, for essentially technical
reasons, has led to the postponement, if not to the cancellation,
of many programs whose execution requires direct, personal,
physical contact between people, for example researchers and
interviewees.
A third of Ipsos' turnover is conducted using
"face to face" protocols. Everything that was executed before March
15 - January 15 in China - is done. As of the start of lock down
measures, the vast majority of these programs were stopped. Some
have already resumed, changing working methods, for example by
using telephone or digital survey procedures. Most will not resume
until after containment periods and successive restrictive measures
end.
Under these conditions, Ipsos indicates:
- that it suspends any estimate of what its
activity should be for the whole of 2020
- that its results for the first quarter of
2020 are lower than the commercial dynamics recorded until the end
of the second week of March gave hope for.
Ipsos has obviously implemented a series of measures intended to
protect its margins, its liquidity and its ability to work with its
customers:
- control
over the activity of the various markets is reinforced by the
transition to a weekly reporting system, which replaces the usual
monthly reporting;
- the
volume of payroll - which represents almost 80% of Ipsos' fixed
costs - is rapidly reduced. Recruitments have been frozen, as well
as planned salary increases, whether or not linked to promotions.
The main directors and executives of Ipsos, around 700 people, have
overwhelmingly agreed to monthly salary reductions of up to 20%. Of
course, Ipsos will participate in the various plans implemented in
certain countries which result, as far as possible, in maintaining
existing jobs. Finally, while the bonuses linked to the performance
of 2019 have been paid, the variable remuneration systems relating
to 2020 have, for the moment, been put on hold;
- overhead
was also the subject of great attention. International travel had
been suspended since February 28 for health reasons. All other
spending lines, including leases and capital investments, are
reduced as quickly and as much as possible. On the other hand, the
digitization programs of our offers are preserved;
- it will
be proposed to the General Meeting of shareholders, which will
probably be held behind closed doors (see below) on May 28, to
distribute a dividend of 45 cents per share, i.e., almost 50% less
than what had been initially planned.
- share
buybacks are suspended.
Ipsos ensures above all the safety, tranquility
and health of all those with whom it works and on whom it depends:
its employees and contract workers, its customers, its suppliers
and partners and the tens of millions of people who are asked each
year to give their opinions, express their preferences and describe
their wishes or experiences.
Ipsos is confident in its ability to get through the period that
has just opened and that will last longer than the time of
confinement. For a long time, this pandemic will be a game-changer.
It is massive, brutal and universal. It is also lived by all, in
real time, the first time for a viral attack that is so contagious.
As such, it will permeate the functioning of society, the structure
of markets and the behaviors, hopes and fears of people. It will
force institutions and businesses to work differently. It will also
reinforce Ipsos’ conviction that information, as long as it is
properly produced, analyzed with rigor and communicated with vigor
and clarity, is the most essential tool that these same
institutions and companies need. In the coming years, markets will
be more volatile, and the opportunities to win or lose, and to gain
or no longer hold the confidence of our customers / consumers /
citizens, will become more strong.
The research industry, and within it Ipsos, are preparing to
live up to the challenges that our clients will encounter. The
persistence of a large flow of new orders addressed to Ipsos bears
witness to this.
***
The Chairman and Chief Executive Officer, Didier Truchot and the
Group Deputy Chief Executive Officer and Chief Financial Officer,
Laurence Stoclet, will answer your questions during a conference
call to be held at 4:00 p.m. today (Paris Time)
for which an invitation was sent to you separately.
Our next press release will be published
on April 23 after the close of the stock market on
our turnover for the first quarter of 2020.
SHAREHOLDERS GENERAL MEETING
Ipsos SA confirms the holding of the General Meeting of
its shareholders on May 28, 2020, at its headquarters at 35, rue du
Val de Marne, at 9:30 a.m.
However, given the rapid and uncertain evolution of the
coronavirus pandemic (Covid-19) which has led public authorities to
take strict containment measures to combat its spread, the Board of
Directors has decided, on an exceptional basis and pursuant to
ordinance n ° 2020-321 of March 25, 2020, that this General Meeting
will be held behind closed doors without the physical presence of
shareholders and other persons entitled to attend if, on the date
of its convocation or its meeting, it is affected by an
administrative measure limiting or prohibiting collective
gatherings for health reasons.
In this context, the Company invites its shareholders to
anticipate now that they will not be able to physically participate
in the General Meeting. In this regard, the Autorité des Marchés
Financiers reminds shareholders of listed companies that it is
possible for them to vote at general meetings without being
physically present.
Shareholders are therefore encouraged to participate in the 2020
General Meeting, and to exercise their rights remotely before the
General Meeting, that is to say:- to vote or to give a proxy to the
President of the Meeting using the voting form, according to the
instructions which will be specified in the notice of meeting;- to
ask written questions, by post or electronically, attaching proof
of their status as shareholders so that the questions are taken
into account.
If the next General Assembly meeting is held behind closed
doors:- the General Meeting will be broadcast in full - live and
deferred - on the Company's website www.ipsos.com, in the “General
Meetings” section;- it will not be possible during the General
Assembly Meeting to ask questions or to propose new
resolutions.
The procedures for holding the General Assembly
could change depending on health and/or legal requirements.
Shareholders are called upon to regularly consult the section
dedicated to the 2020 General Meeting on the Company's website
www.ipsos.com
ABOUT ISPOS
Ipsos is the third largest market research company in the world,
present in 90 markets and employing more than 18,000 people.
Our passionately curious research professionals, analysts and
scientists have built unique multi-specialist capabilities that
provide true understanding and powerful insights into the actions,
opinions and motivations of citizens, consumers, patients,
customers or employees. Our 75 business solutions are based on
primary data coming from our surveys, social media monitoring, and
qualitative or observational techniques.
“Game Changers” – our tagline – summarizes our ambition to help
our 5,000 clients navigate with confidence our world of rapid
change.
Founded in France in 1975, Ipsos is listed on the Euronext Paris
since July 1, 1999. The company is part of the SBF 120 and the
Mid-60 index andis eligible for the Deferred Settlement Service
(SRD).ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP
www.ipsos.com