2018 Full Year Results
Accelerated transformation
and record year, both commercially and
financially
February 6, 2019
-
Publicis Groupe ranked No. 1 in
new business league tables (1)
-
Operating margin up 60 basis
points; Headline diluted EPS up 10.3% (2)
-
Organic growth of +0.8%
(3) in 2018,
despite attrition in traditional advertising in the USA
-
Strategic and operational KPIs
ahead of plan, with strong contribution to growth from strategic
game changers (+28%)
-
Share buyback program of €400
million
-
Publicis Groupe confirms its
2020 objective of +4% organic growth
2018
Results
|
|
|
|
2018 before IFRS16 |
2018 vs 2017 at
constant exchange rates
before IFRS16 |
|
9,951 |
+1.1% |
|
8,969 |
+0.1% |
|
+0.8% |
|
|
1,501 |
+5.0% |
|
16.7% |
|
|
1,107 |
+12.2% |
|
4.72 |
+10.3% |
|
1,311 |
+2.4% |
|
|
|
Q4 2018
(1)
Source: Goldman Sachs, JP Morgan, RECMA, R3
(2) At constant exchange rates
(3) Organic growth of Net revenue,
excluding PHS
(4) See definitions
Arthur Sadoun, Chairman and CEO of Publicis Groupe:
"2018 was a
productive year for Publicis. We clearly led the change in our
industry, demonstrating that we have the model to win today and
tomorrow, and a transformation roadmap to continuously increase
shareholder value.
Thanks to the
vision of Maurice Levy and to the hard work of our teams, we are
posting a record year both commercially with a disproportionate
share of new business wins, and financially with the highest EPS
ever.
There are four
key highlights of 2018: new business, financial performance,
organic growth and transformation.
First, the move
that we are operating from being a communication partner to a
marketing and business transformation partner for our clients is
making a massive difference commercially. We have outperformed the
market in new business on every front. At Groupe level, we ranked
first globally as highlighted in several reports, including
JPMorgan and Goldman Sachs. Publicis Media is leading the media
industry as stated in RECMA's ranking. Finally, in the creative
field, our two biggest networks Publicis Worldwide and Leo Burnett
ranked first and second respectively in R3's new business
reports.
Our model
connecting data, dynamic creativity and technology is working
beautifully and fits the current and future needs of the clients.
This is why we won the majority of the biggest pitches of 2018,
such as Daimler, Campbell's, Marriott, Carrefour, Cathay Pacific,
Smucker's, GSK and Fiat-Chrysler. These last two wins represent
more than one billion dollars in billings each.
Second, we
over-delivered financially while we were transforming.
We improved
operating margin rate by 60 bps compared with 2017 reported figure,
above our objective of a 30 to 50 basis point increase. Operating
margin rate reached 16.7 % before IFRS16. It is important to
mention that we did not deliver this performance at the expense of
tomorrow's growth. We realized 194 million euros of savings, thanks
to all our work on structure simplification and the rightsizing of
some operations. Out of this amount, 109 million euros were
reinvested in our talents and our game changers.
Headline diluted
EPS grew by 10.3 % at constant currency, above the top end of our
target of 5 % to 10 % growth. Therefore, we will propose a 2.12
euro dividend per share representing a 45% pay out as committed at
the investor day.
Finally, free
cash flow remained very strong above 1.3 billion euros, fueled by a
positive change in working capital for the second year in a row.
This allowed us to turn net cash positive at 196 million euros at
the end of 2018, only four years after the 3-billion-euro
acquisition of Sapient. This is a big strength at this time of
economic uncertainty. As the amount spent in M&A was below our
objective in 2018, and as committed at the investor day, we
announce a 400 million euro share buyback.
Third, excluding
PHS, as the expected disposal was completed, full year 2018 organic
growth was + 0.8 %, with H2 at + 1.3 % and Q4 at + 0.5 %. We
benefitted from the exponential growth of our game changers
representing an incremental revenue of close to 240 million euro,
with the positive impact of new business ramp up. But we suffered
from the usual year-end volatility and the higher-than-expected
attrition in traditional advertising at 150 million euro, mainly
from several FMCG clients in the US. This is a broad industry
challenge as competitors, our clients themselves, and the press
have been saying. We are taking strong actions to overcome
it.
The fourth thing
you should take out from 2018 is that we are ahead on all the
strategic and operational KPI of our transformation to become the
market leader in marketing and business transformation. The best
evidence is our game changers performance. Data, dynamic
creativity, and business transformation grew by 28%, and represent
now 12% of the Groupe net revenue.
So today, we have
the financial robustness, the model to win in the future and a
clear roadmap for the next steps of our journey. We now need to
deliver strong and profitable organic growth.
In this
challenging context, we are making the demonstration that we have
built the model of the future and are highly competitive, while
working to create more value for our shareholders.
This was the
Directoire's commitment for 2018 and it is what we are delivering
today.
We confirm the 4%
organic growth objective in 2020, and the 30 to 50 basis point
margin improvement both in 2019 and 2020."
*
*
*
Publicis Groupe's
Supervisory Board met on February 6, 2019, under the chairmanship
of Maurice Lévy, to examine the annual accounts for 2018 presented
by Arthur Sadoun, CEO and Chairman of the Management Board.
KEY
FIGURES
EUR million, except per-share data and
percentages |
2018 (1) after IFRS
16 |
2018 before IFRS 16 |
2017 before IFRS 16 |
Data from the Income
Statement: |
|
|
|
Net
revenue (2) |
8,969 |
8,969 |
9,332 |
Pass-through revenue |
982 |
982 |
914 |
Revenue (2) |
9,951 |
9,951 |
10,246 |
Operating margin before Depreciation & Amortization |
2,049 |
1,652 |
1,666 |
% of Net revenue |
22.8% |
18.4% |
17.9% |
Operating margin |
1,523 |
1,501 |
1,505 |
% of Net revenue |
17.0% |
16.7% |
16.1% |
Operating
income |
1,303 |
1,281 |
1,316 |
Net income
attributable to the Groupe |
919 |
944 |
862 |
Earnings
Per Share (EPS) |
4.01 |
4.12 |
3,81 |
Headline
diluted EPS (3) |
4.61 |
4.72 |
4.50 |
Dividend
per share (4) |
2.12 |
2.12 |
2.00 |
Free Cash
Flow before changes in working capital requirements |
1,158 |
1,182 |
1,287 |
EUR million
Data from the Balance Sheet |
Dec. 31, 2018 after IFRS
16 |
Dec. 31, 2018 before IFRS
16 |
Dec. 31, 2017 before IFRS
16 |
Total
assets |
27,080 |
25,359 |
23,780 |
Groupe
share of Shareholders' equity |
6,853 |
6,866 |
5,956 |
Net debt
(net cash) |
(288) |
(196) |
727 |
(1) The financial statements at December 31,
2018 were prepared with the early application of IFRS 16 (use of
the prospective method without restating the previous year)
(2) In accordance with IFRS 15 applicable as
of January 1, 2018, comparative data from the previous period have
been restated. Revenue is equal to Net revenue plus
pass-through revenue
(3) Net income attributable to the Groupe,
after elimination of impairment charges / real estate
transformation expenses, amortization of intangibles arising on
acquisitions, the main capital gains (or losses) on disposals,
change in the fair value of financial assets, the impact of US tax
reform and the revaluation of earn-out costs, divided by the
average number of shares on a diluted basis.
(4) To be proposed to the shareholders at
their AGM of May 29, 2019
It should be noted that, unless otherwise specified, the
following comments on Income Statement and Balance Sheet data are
before application of IFRS 16.
IFRS 15 ON
REVENUE RECOGNITION
Publicis Groupe has been applying
IFRS 15, the accounting standard on revenue recognition, since
January 1, 2018. The 2017 financial statements have therefore
been restated for the purposes of comparison with revenue since the
standard came into force. This has increased revenue since
certain costs - that are directly re-invoiced to clients - are no
longer set against revenue. These costs mainly concern
production and media activities, as well as various miscellaneous
costs incumbent on clients.
In this context, as these items
that can be re-billed to clients do not come within the scope of
analysis of operations, Publicis Groupe has decided to focus on a
different indicator, i.e. revenue less pass-through revenue or Net
revenue, which is the most relevant indicator in terms of measuring
the Groupe's operational performance.
The table below provides a
detailed account of revenue reported in respect of 2017 before the
impact of IFRS 15, as well as the 2017 figures restated after
applying IFRS 15, i.e. Net revenue and Revenue.
EUR million |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
2017 |
Before IFRS 15 |
|
|
|
|
|
Reported revenue |
2,328 |
2,515 |
2,264 |
2,583 |
9,690 |
|
|
|
|
|
|
After
IFRS 15 |
|
|
|
|
|
Net revenue |
2,267 |
2,397 |
2,185 |
2,483 |
9,332 |
+
Pass-through revenue |
222 |
235 |
206 |
251 |
914 |
= IFRS
revenue |
2,489 |
2,632 |
2,391 |
2,734 |
10,246 |
A breakdown of 2017 Net revenue by
quarter and by region, as well as the main items of the 2017
half-yearly and annual results including the impact of IFRS 15, was
provided in the press release dated July 6, 2018 (available on the
Groupe's website at www.publicisgroupe.com).
IFRS 16 ON LEASE
AGREEMENTS
Publicis Groupe chose to apply
IFRS 16 "Leases" early from January 1, 2018.
Pursuant to IFRS 16, all leases
are now recognized by recording a right-of-use asset and liability
equal to the present value of the future payments. The
right-of-use assets, related to leases, are amortized over the term
of lease agreements.
The Publicis Groupe contracts that
come within the scope of this standard concern the following:
- mainly
property leases: Publicis leases its offices in most of the cities
where it operates;
- and, to a
lesser extent, the use of advertising space within its advertising
sales business (via advertising space concession contracts with
guaranteed minima), and the leasing of vehicles and IT
equipment.
Publicis Groupe has opted for the
cumulative catch-up approach which consists in booking the
cumulative impact of the initial application as an adjustment to
opening equity, considering that the right-of-use assets are equal
to the amount of lease liabilities adjusted by the amount of
prepaid rent. The opening balance sheet at January 1, 2018,
after application of IFRS 16, was presented in Note 3 to the
financial statements at June 30, 2018. Furthermore, the 2017
Income statement has not been restated. When reporting its
annual results for 2018, the Groupe has published IFRS 16-compliant
financial statements but also its financial results before application of this new standard for the
purposes of comparison with its performance in 2017.
NET REVENUE IN Q4
2018
Publicis Groupe's Net revenue in
Q4 2018 was 2,492 million euro, up 0.4% from 2,483 million euro in
2017. At constant exchange rates, growth was +0.2% after
inclusion of the positive impact of exchange rate variations (5
million euro or +0.2%). Net acquisitions contributed 11
million euro to Net revenue in Q4 2018 (including the
deconsolidation of Genedigi from January 1, 2018).
Organic growth was -0.3% in Q4
2018. When PHS is factored out, growth was +0.5% in the
fourth quarter. Growth was therefore slower than in Q3 due to
negative impact of the usual year-end volatility and the
higher-than-expected rate of attrition in the traditional
advertising business, notably in the FMCG sector in the US.
Organic growth nonetheless benefited from the ramp-up of accounts
won in Q1 2018 - notably those of Daimler, Carrefour, Campbell's
and Marriott - which contributed 150 basis points.
Breakdown of Q4
2018 Net revenue by region
EUR |
Net revenue |
Reported |
Organic |
Organic
growth
excl. PHS |
million |
Q4 2018 |
Q4 2017 |
growth |
growth |
Europe |
753 |
718 |
+4.9% |
+4.4% |
+4.3% |
North America |
1,260 |
1,253 |
+0.6% |
-2.6% |
-1.1% |
Asia Pacific |
277 |
300 |
-7.7% |
-2.8% |
-2.8% |
Latin America |
110 |
126 |
-12.7% |
-1.9% |
-1.9% |
Middle East
& Africa |
92 |
86 |
+7.0% |
+6.8% |
+6.8% |
Total |
2,492 |
2,483 |
+0.4% |
-0.3% |
+0.5% |
NET REVENUE IN
FULL YEAR 2018
Publicis Groupe's Net revenue for
the full year 2018 was 8,969 million euro, compared with 9,332
million euro in 2017, i.e. a 3.9% decrease. At constant
exchange rates, growth was +0.1% but the actual impact of exchange
rate variations was a negative 4.0% or 374 million euro. Net
acquisitions contributed 5 million euro to Net revenue in 2018
(including the deconsolidation of Genedigi from January 1,
2018).
Organic growth was +0.1% in 2018.
It was +0.8% without PHS. This includes 28% growth of Net revenue
from the Strategic Game Changers, i.e. an organic contribution to
Net revenue of close to +240 million euro, but also the 150 million
euro impact of attrition.
Breakdown of 2018 Net revenue by sector
Based on 3,216 clients representing 87% of the
Groupe's total revenue
Publicis Groupe made effective the
disposal of Publicis Health Services in January 2019. This
entity services CSOs (Contract Sales Organizations), a business
that does not exist in other healthcare communications networks
that mainly specialize in outsourcing. By its very nature,
this business is highly volatile and developments in the healthcare
sector have led clients to make last-minute adjustments resulting
in the postponement or even the cancellation of campaigns.
The pharmaceutical industry is
undergoing radical transformation throughout the world. At a
time when medical research and sales have moved on from the
blockbuster era to one of more specialized therapies, it has become
necessary to adapt its marketing and to propose measures that
target patients and prescribers much more specifically.
Publicis Groupe's offering - which is articulated around data,
dynamic creativity and digital business transformation - is clearly
aligned with these needs.
Publicis Groupe remains determined
to provide its clients with the best possible offering for their
digital transformation and this will require investment in
healthcare-related consulting, data and technology.
Breakdown of 2018 Net revenue by region
EUR |
Net revenue |
Reported |
Organic |
Organic
growth
excl. PHS |
million |
2018 |
2017 |
growth |
growth |
Europe |
2,622 |
2,596 |
+1.0% |
+1.4% |
+1.3% |
North America |
4,795 |
5,032 |
-4.7% |
-0.8% |
+0.5% |
Asia Pacific |
924 |
1,037 |
-10.9% |
-1.8% |
-1.8% |
Latin America |
347 |
387 |
-10.3% |
+4.5% |
+4.5% |
Middle East
& Africa |
281 |
280 |
+0.4% |
+4.6% |
+4.6% |
Total |
8,969 |
9,332 |
-3.9% |
+0.1% |
+0.8% |
Europe reported growth of +1.0%.
However, when changes in scope of consolidation, exchange rates and
PHS are all factored out, growth stands at +1.3%. Growth has
accelerated since the end of June, mainly due to the ramp-up of
accounts gained in the earlier part of the year, particularly
Daimler and Carrefour. This is the broader context within
which Germany returned to positive growth, especially in the second
half of the year (+10.9% in Q4), whilst growth accelerated in
France (+3.8% for the full year, after +0.7% at June 30) and in the
UK (+3.8% for the full year versus +1.8% at June 30).
North America posted organic
growth of -0.8% in 2018. When the impact of PHS is factored
out, organic growth stands at +0.5% thanks to accounts awarded in
2017 (including McDonald's, Diesel, Lionsgate, Molson Coors and
Southwest) and the win of Campbell's and Marriott in early 2018,
and despite pressures in the traditional advertising. North
America is impacted by the difficulties encountered by Publicis
Health Services where the decline in Net revenue adversely affected
growth by approximately 130 basis points in 2018. Given the
impact of exchange rates, North America reported a 4.7% decline in
Net revenue by comparison with 2017.
Asia Pacific reported growth of
-10.9% and organic growth of -1.8%. Most of this negative
performance was due to Australia (-4.7%), which was affected in the
first half-year by the non-renewal by Qantas of its call center
management contract. China saw its growth decline slightly
(-1.3%) due to the loss of certain accounts. Singapore saw
its Net revenue grow by 3.9% in 2018.
Latin America was down 10.3%
mainly due to exchange rates, but posted organic growth of
+4.5%. Brazil saw its Net revenue progress by 1.1% thanks to
the gain of the Petrobras and Bradesco accounts. The slowdown
in the fourth quarter was due to the cancellation of several
campaigns by clients. Mexico continued to record sustained
growth (+5.5%).
The Middle East & Africa
reported growth of 0.4% as a result of the strengthening of the
euro, but also organic growth of +4.6% driven by the United Arab
Emirates (+7.5%)
ANALYSIS OF THE
KEY FIGURES
Unless otherwise specified, all
figures are before IFRS 16.
Income
Statement
Personnel costs totaled 5,747
million euro at December 31, 2018, down 3.8% from 5,977 million
euro in 2017. This moderate decrease was mainly due to
investments in the strategic game changers amounting to 109 million
euro, increased incentives payments as a result of the very good
performance in terms of new accounts won in 2018, and savings
achieved by simplifying the Groupe's structures. Fixed
personnel costs of 4,968 million euro represented 55.4% of Net
revenue after 56.0% in 2017. Freelance costs totaled 367
million euro in 2018, compared with 374 million in 2017.
Restructuring costs stood at 104 million euro in 2018 (down from
120 million euro in 2017) as the Groupe reorganizes around The
Power of One which increasingly integrates structures and
activities. Cost savings of 2018 reached 194 million
euro. Numerous investments (organization by country,
development of production platforms, on-going regionalization of
the Shared Services Centers, as well as various technological
developments) will all help improve operational efficiency.
Other operating costs (excluding
Depreciation & Amortization) amounted to 2,552 million euro,
down from 2,603 million euro in 2017. When pass-through costs
are factored out, Other operating costs represented 17.5% of Net
revenue, down from 18.1% in 2017 thanks to the initial impact of
the real estate restructuring program.
The Operating margin before
depreciation & amortization was 1,652 million euro in 2018,
down 0.8% from 1,666 million euro in 2017, i.e. a percentage margin
of 18.4% of Net revenue (up from 17.9% in 2017).
Depreciation & Amortization
for the period totaled 151 million euro, down 6.2% on 2017.
The Operating margin amounted to
1,501 million euro, down 0.3% on the 2017 margin of 1,505
million. At constant exchange rates, the Operating margin
rose 5.0%. The operating margin rate was 16.7%, a 60-basis
point increase on 2017. At constant exchange rates and the
same scope of consolidation, this increase would have been 30 basis
points. This was made possible by the decrease in
restructuring costs (10 basis points) but also by the cost savings
plans deployed over the last 18 months (210 basis points), i.e. 194
million euro. This has made way for investment totaling 109
million in the game changers aimed at building the Groupe's future
growth (120 basis points) and increase in incentives payments for
70 basis points.
The operating margins by region
were 16.3% for Europe, 17.3% for North America, 17.9% for Asia
Pacific, 15.0% for Latin America and 9.6% for the Middle East &
Africa.
Amortization of intangibles
arising from acquisitions totaled 69 million euro in 2018, down
from 73 million euro in 2017. The 114 million euro real
estate transformation expense was as a result of the Groupe's All
in One real estate program commenced in early 2018. An
impairment charge of 17 million euro was booked for the
period. Furthermore, a net non-recurring expense of 20
million euro was carried in 2018 (versus a net expense of 1 million
in 2017), of which 18 million euro was the capital loss on the
disposal of Genedigi in early April 2018.
Operating income totaled 1,281
million euro in 2018, after 1,316 million euro in 2017.
Financial income (expense), which
is comprised of the cost of net debt and Other financial income and
expenses, amounted to a net expense of 16 million euro in 2018
after a net expense of 61 million euro in 2017. The cost of
net debt was 22 million euro in 2018, down from 51 million euro in
2017. The improvement came from debt reduction at Groupe
level and higher interest rates in the USA on cash in US
dollars. Other financial income and expenses netted out at an
income of 6 million euro, after an expense of 10 million euro in
2017. The change is due to the recognition of a change in the
fair value of financial assets (Fonds Commun de
Placement à Risques) in the P&L as of 2018 (IFRS9
accounting standard), for 9 million euro, when those changes were
initially booked as equity.
The revaluation of earn-out
payments amounted to an expense of 13 million euro at year-end,
after an expense of 66 million in 2017.
Income tax for the period was 293
million euro, corresponding to an effective tax rate of 24.0% for
2018, after 312 million euro in 2017, i.e. an effective tax rate of
27.2 %.
The Associates' share of profit
was a loss of 4 million euro, compared with a loss of 5 million at
year-end 2017. Minority interest totaled 11 million euro in
2018, after 10 million in 2017.
Overall, Net income attributable
to the Groupe was 944 million euro at December 31, 2018, up from
862 million euro at December 31, 2017.
After application of IFRS 16, the
Operating margin stood at 1,523 million euro, and the percentage
operating margin was 17.0%. By region, the percentage margin
was 16.4% for Europe, 17.7% for North America, 17.9% for Asia
Pacific, 15.6% for Latin America, and 10,0% for the Middle East
& Africa.
Operating income amounted to 1,303
million euro in 2018.
Financial income (expense) was an
expense of 71 million euro in 2018, including interest expense of
58 million euro on lease commitments.
Income tax amounted to 285 million
euro, corresponding to an effective tax rate of 24.0% for 2018.
Overall, Net income attributable
to the Groupe stood at 919 million euro at December 31, 2018.
Free Cash
Flow
This indicator is used by the
Groupe to measure liquidity generated by the operating activities
after investments in fixed assets, but before acquisitions and
disposals of equity interests and before financing.
EUR million |
2018 (1) after IFRS
16 |
2018 before IFRS 16 |
2017 before IFRS 16 |
Operating margin before Depreciation & Amortization |
2,049 |
1,652 |
1,666 |
Financial interest paid (net) |
(3) |
(14) |
(38) |
Refunding of lease commitments and associated interest |
(432) |
|
|
Income
tax paid |
(328) |
(328) |
(264) |
Other |
68 |
68 |
54 |
Cash Flow from operations before variations in WCR |
1,354 |
1,378 |
1,418 |
Investments
in fixed assets (net) |
(196) |
(196) |
(131) |
Free Cash Flow before changes in WCR |
1,158 |
1,182 |
1,287 |
Variation
in working capital requirements |
153 |
129 |
69 |
Free cash-flow |
1 311 |
1 311 |
1 356 |
(1) The financial statements at December 31,
2018 have been drawn up under IFRS 16 in anticipation of its coming
into effect (cumulative catch-up approach).
The Groupe's free cash flow,
before application of IFRS 16 and excluding variations in working
capital requirements, was down 8.2% on the previous year to stand
at 1,182 million euro. At constant exchange rates, it fell
2.6%. This downswing was due to higher capex and the higher
level of income tax paid. Investments rose to 196 million
euro from 131 million euro in 2017. This increase includes
investments made under the All in One real estate program.
Income tax paid rose from 264 million euro in 2017 to 328 million
euro in 2018, but while the first half-year 2017 saw the Groupe
receive a tax refund, the first half of 2018 was marked by the
first installment of the toll charge related to the US tax reform
(spread over eight years).
Free cash flow including
variations in working capital requirements was 1,311 million euro
down 3.3% on the previous year, but a 2.4% increase at constant
exchange rates.
After IFRS 16, the Groupe's free
cash flow before variations in working capital requirements stood
at 1,158 million euro. Free cash flow after variations in
working capital requirements was at 1,311 million euro.
Net debt
At December 31, 2018, the Groupe
had net cash of 196 million euro, compared with net debt of 727
million euro at December 31, 2017 (debt / equity ratio of 0.12),
before IFRS 16. The Groupe's average net debt in 2018 was 1,413
million euro before IFRS 16, down from 1,980 million euro in
2017.
After application of IFRS 16, the
net cash position was 288 million euro at December 31, 2018 and the
average net debt stood at 1,323 million euro.
SHARE BUYBACK
PROGRAM
At the Investor Day, a 300 to 500
million euro budget for bolt-on acquisitions was communicated with
the aim to scale up the strategic game changers. The Groupe
committed to return cash to shareholders through a share buyback
program should this budget not be reached.
Given acquisitions reached circa
200 million euro ([1]), it has
been decided to put in place a 400 million euro share buyback
program. This amount includes the proceeds resulting from the
disposal of Publicis Health Services for circa 100 million
euro.
HIGHLIGHTS FROM
2018
Sprint To The
Future
Since 2014 and the acquisition of
Sapient, Publicis Groupe has undertaken a deep transformation and
is now uniquely positioned thanks to three key
differentiators:
- Its vision: the technology provided by
Publicis.Sapient gives the Groupe the expertise to combine
marketing transformation and digital business transformation,
connected by data. Thanks to its unparalleled assets, Publicis
Groupe is able to engage with both Chief Marketing Officers (CMOs)
and Chief Information Officers (CIOs), to help clients transform
their marketing and business at scale in order to face disruptive
digital challenges.
- Its model: The Power of One gathers all the
Groupe's capabilities under one roof, putting clients at the core
of its organization. This has led to the deployment of Global
Client Leaders (GCLs) and the implementation of the country model
under one leader and a unified executive team drawing from all the
expertise of the Groupe to break down silos and improve
efficiency.
- Its governance: the Groupe has successfully completed its
management succession and has reinforced its decision-making
committees, with strong emphasis on the execution of strategy.
On March 20, 2018, Publicis Groupe
presented its strategy and execution plan named Sprint To The
Future. This plan is based on three pillars:
1. To bring every client
what it takes to make them win in the future, namely one-to-one
consumer engagement at scale, through three strategic game changers
(data, dynamic creativity, and digital business
transformation);
2. A sprint to accelerate
the Groupe's transformation, notably including the appointment of
Global Client Leaders, the roll-out of a country organization
model, and an investment program geared for growth and funded by a
major cost savings plan;
3. To deliver greater value
to shareholders while transforming, through accelerated organic
growth and higher percentage margins.
Further details can be found in
the Groupe's press release dated March 20, 2018:
https://www.publicisgroupe.com/en/news/press-releases/publicis-2020-sprint-to-the-future-en-1
The initial results are
promising. Revenue generated by the strategic game changers
rose 28% in 2018, thus confirming the relevance of the Groupe's
strategic choices. Net revenue generated by these strategic
game changers totaled circa 1,050 million euro, representing 12% of
the Groupe's total net revenue.
At December 31, Publicis Groupe
had appointed 61 Global Client Leaders, compared with 35 at
year-end 2017 and the target of 100 by 2020. The goal of
having 100% of Net revenue organized under the "country model" was
reached by the end of the first half year, with an organization
articulated around eight key markets: France, UK, DACH (Germany,
Austria and Switzerland), Central and Northern Europe, Southern
Europe, North America, Latin America, Asia Pacific, and Middle East
& Africa. This organization will accelerate the Groupe's
growth and the achievement of its productivity gains.
The percentage operating margin
rose by 60 basis points, thus exceeding the target of expanding it
by 30 to 50 bps. Headline EPS increased by 10.3% at constant
exchange rates, above the top end of the growth range guidance of 5
to 10%.
Several acquisitions were either
completed or announced in 2018 (of which Payer Sciences, Xebia,
Soft Computing) with a view to reinforcing the strategic game
changers for the greater benefit of our clients. Further
acquisitions will follow over the next few quarters.
The cost of acquisitions totaled
circa 200 million euro in 2018 ([2]), i.e.
below the budgeted range of 300 to 500 million euro. As committed
by the Groupe, part of the amount not spent will be returned to
shareholders and a 400 million euro share buyback plan will be
carried out for this purpose.
All the Groupe's energy is focused
on the execution of its strategy with a view to delivering greater
value to its clients, people and shareholders. A dedicated
incentive plan, fully aligned with the financial objectives of the
strategic plan, was implemented in May 2018 for the group of
executives entrusted with the execution of this plan.
Acquisitions and
disposals
Publicis Groupe completed the
disposal of Genedigi in the second quarter of 2018.
On July 17, Publicis Health
announced the acquisition of Payer Sciences, a
highly innovative agency using marketing strategies based on its
considerable expertise in data analytics, supporting pharmaceutical
groups in their dealings with reimbursement systems in the
USA. This Morristown, New Jersey-based firm boasts a team of
40 data analysts who are experts in reimbursement systems and B2B
communications.
On August 1, Publicis
Communications announced the acquisition of One
Digital, the Sao Paulo-based digital agency focusing on
performance and creativity. One Digital was set up in 2003
but now counts 64 professionals working with Brazilian and
international brands such as Agora (investment), American Express,
Autoline (financial services), BitBlue (cryptocurrency), Bradesco
(banking services), Next (online banking services), Norsk Hydro
Brazil (aluminum production) and ShopFacil.com (e-commerce).
The agency will be aligned with Publicis Communications which has a
headcount of 1,700 in Brazil, all agencies combined (Arc, Deepline,
DPZ&T, F/Nazca Saatchi&Saatchi, Leo Burnett, Tailor Made,
MSL, Publicis Brésil, Prodigious, Sapient AG2, Talent Marcel and
Vivid Brand).
On October 4, Publicis Groupe
announced the acquisition of Kindred Group,
the largest independent digital communications company in the Czech
Republic. Kindred Group was founded in 2013 by Michal Nýdrle
and a group of partners as a collective of independent specialized
agencies that includes digital agencies Nýdrle and Inspiro, as well
as media agencies Red Media and Go.Direct. Within five years,
Kindred Group has become the Czech Republic's largest independent
digital communications company by revenue (source: Association of
Communications Agencies Czech Republic). Kindred Group works with a
wide variety of international and local clients including Moneta
Money Bank, Unilever, KMV, Vodafone, Zoot, Rémy Cointreau,
Ceskoslovenska obchodní (bank), Huawei and Makro Cash & Carry.
With this acquisition, Publicis Groupe will see its headcount reach
the 400 mark, thus enabling it to offer end-to-end services to its
clients in the Czech Republic, spanning data analytics,
technological implementation and consulting, as well as
programmatic media buying and data-driven creativity.
On October 22, Publicis Groupe
announced that it had entered into exclusive negotiations with
Xebia France, the agile IT consultancy
firm. Founded in 2005 by Luc Legardeur, Xebia France is a
renowned agile IT consultancy firm specialized in data, web and
cloud technologies, reactive software programming and
mobility. This technological gem, with a 170-strong talented
team known as the "Xebians", works with large accounts such as Axa,
Air France, BNP Paribas, la Française des Jeux, Meetic, Natixis,
Sanofi, and start-up businesses such as BlaBlaCar, EarlyBirds and
Mano Mano. This merger will strengthen Publicis.Sapient in
France (650 people) and bolster its high-end engineering
capability. It will enhance Publicis.Sapient's unique selling
proposition which combines strategy, consulting, experience and
technology, an essential combination for successful end-to-end
transformation of its clients.
On December 20, Publicis Groupe
announced it was entering into exclusive negotiations with the
founding shareholders of Soft Computing, a
leading data marketing firm in France, with a view to the
acquisition of a controlling block representing 82.99% of the share
capital at a price of 25 euro per share (2018 coupon attached),
i.e. at a premium of 66.66% to the closing price on December 19,
2018. Created in 1984 by Eric Fischmeister and Gilles
Venturi, Soft Computing is specialized in data and how it is
applied to enhance marketing and transform the customer
experience. With over 400 experts, this market-leading
company provides its services to the majority of large corporates
in the retail, services and financial sectors. This
transaction would reinforce Publicis Groupe's data marketing
expertise across the entire value chain in France, further
consolidating its position as the preferred partner for its
clients' transformation. The proposed acquisition is subject
to prior information and consultation with the bodies representing
Soft Computing's staff, as well as to the usual conditions
precedent. If the acquisition of this controlling stake is
completed, Publicis Groupe will file a simplified public offering,
which may be followed by a compulsory buyout if the attendant
conditions are met.
On December 31, 2018, Publicis
Groupe signed an agreement for the disposal of Publicis Health Services (PHS) to Altamont Capital
Partners. This disposal was closed on January 31, 2019.
It was announced in July 2018 that this business unit was placed
under strategic review by Publicis Groupe. The divestiture process
was announced in October of the same year. PHS is a contract
sales and commercialization organization. This disposal will
allow Publicis Health, led by CEO, Alexandra von Plato, to focus on
creative, media, insights, and consulting. This divestment
reinforces Publicis Groupe's focus on providing clients with the
best healthcare-related consulting, data and technology offerings
in support of their growth and digital transformation.
Publicis Groupe is conducting a
disposal process of Proximedia. Based in
France, Belgium, the Netherlands and Spain, Proximedia helps SMEs,
shopkeepers, self-employed craftsmen, in their digital
communication. This disposal project takes place in the context of
the "Sprint To The Future" plan. It will allow Publicis
Groupe to focus its the core assets, around data, dynamic
creativity and technology. This disposal project will be subject to
prior information or consultation with the bodies representing
staff, and should be closed in the first half of 2019.
Nominations
The strategic game changers in
data, dynamic creativity and business transformation are Publicis
Groupe's core differentiated assets in the marketplace. Building on
their strong performance in 2018, the Groupe's focus is to
accelerate their growth further in the coming years. The
development of global industry verticals in marketing
transformation and business transformation is the recipe to scale
the game changers and provide our clients with greater
expertises.
The Groupe is appointing today two
key executives to deploy those industry verticals at global level,
for all of our local operations.
Steve King,
member of Publicis Groupe's Directoire and CEO of Publicis Media,
is promoted to the role of Chief Operating Officer of the Groupe.
He will be responsible for developing the marketing transformation
industry practices in Commerce, Data, Dynamic Creativity
Optimization, Production and Investment. Steve has a strong
track-record in developing industry verticals for Publicis Media
over the recent years, and is now tasked with building those global
industry verticals consistently across all the Groupe's operations
and countries.
Nigel Vaz is
promoted CEO of Publicis.Sapient. He will be responsible for
rolling out further the Business Transformation industry verticals
in Automotive, Consumer Products, Energy & Commodities, Retail,
Financial Services, Health, Media & Telecom, and Travel &
Hospitality. He implemented these industry verticals very
successfully at the international level for Sapient. Alan Wexler is
moving to Chairman and will work directly with Arthur Sadoun on
selected key clients' transformations.
To help these clients leverage all
the Groupe's assets, Ros King is joining
Publicis Groupe as EVP Global clients. Ros will be tasked to
strengthen the relationship with key clients of Publicis Groupe and
connect the GCL organization with the five global marketing
transformation industry verticals. Based in New York, Ros will
report directly to Arthur Sadoun who will personally oversee the
transformation of the relationship with the top clients. Ros comes
from Lloyds Banking Group where she implemented operationally the
transformation of consumer engagement as Director of Marketing
Innovation and Communications, after leading agencies and top
accounts in the industry.
OUTLOOK
We have begun 2019 with optimism
even though we expect a bumpy ride in the first quarter due to the
prolonged effects in the first months of the year of the FMCG
client attrition of Q4 2018. However, the ramp-up of the
significant accounts won towards the end of 2018 should lead to
improved organic growth as of the second quarter.
After very good performance in
2018, Net revenue from the strategic game changers should continue
to grow fast in 2019. At the same time, we expect relatively
high attrition in 2019 which should cause higher volatility of our
quarterly organic growth. We expect 2019 organic growth to
accelerate compared with 2018 and we confirm our objective of +4.0%
organic growth for the full year 2020.
We are counting on a 30 to
50-basis point increase of our operating margin rate in 2019 and
2020. Growth of our headline diluted EPS should be between 5
and 10% at constant exchange rates in 2019 and in 2020.
*
*
*
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 from those projected. These forward-looking statements
and forecasts are presented as at the date of this document and,
other than as required by applicable law, Publicis Groupe does not
assume any obligation to update them to reflect new information or
events or for any other reason. Publicis Groupe urges you
carefully to consider the risk factors that may affect its
business, as set out in the Registration Document filed with the
French Autorité des Marchés Financiers (AMF) and which is available
on the website of Publicis Groupe (www.publicisgroupe.com),
including an unfavorable economic climate, an extremely competitive
market sector, the possibility that our clients could seek to
terminate their contracts with us at short notice, the fact that a
substantial part of the Group's revenue is derived from certain key
clients, conflicts of interest between advertisers active in the
same sector, the Group's dependence on its directors and employees,
laws and regulations which apply to the Group's business, legal
action brought against the Group based on allegations that certain
of the Group's commercials are deceptive or misleading or that the
products of certain clients are defective, the strategy of growing
through acquisitions, the depreciation of goodwill and assets
listed on the Group's balance sheet, the Group's presence in
emerging markets, exposure to liquidity risk, a drop in the Group's
credit rating and exposure to the risks of financial markets.
Publicis Groupe has applied IFRS
15 "Revenue" accounting standard since January 1, 2018. Details of
2017 quarterly and full year revenue before and after IFRS 15
impact, 2017 net revenue by quarter and by geography, and the main
items of 2017 half year and full year results before and after IFRS
15 impact, have been disclosed in a press release dated July 6,
2018.
Publicis Groupe has applied IFRS
16 "Leases" early accounting standard, as of January 1, 2018.
Publicis Groupe has retained the "prospective method" (so called
modified retrospective method by the accounting standard) by which
the cumulative effect of the standard will be accounted for as an
adjustment to the opening equity, considering the "right of use"
asset equals the amount of the lease commitment, adjusted for rents
paid in advance. The opening balance sheet with the application of
IFRS 16 as of January 1, 2018 have been disclosed in a press
release dated July 6, 2018. Besides, the 2017 consolidated income
statement has not been restated. The Group has disclosed 2018
half-year results with the application of IFRS 16 and has provided
the financial data before taking into account this new accounting
standard to allow performance comparisons with 2017. The same has
been disclosed for 2018 annual results.
Publicis Groupe has early applied
IFRIC 23 "uncertainty over income tax treatment" since January 1,
2018, comparative data from the previous period have been
restated.
About Publicis Groupe - The Power
of One
Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is a global
leader in marketing, communication, and digital transformation,
driven through the alchemy of creativity and technology. Publicis
Groupe offers its clients seamless access to its tools and
expertise through modular offering. Publicis Groupe is organized
across four Solutions hubs: Publicis
Communications (Publicis Worldwide, Saatchi & Saatchi, Leo
Burnett, BBH, Marcel, Fallon, MSL, Prodigious), Publicis Media (Starcom, Zenith, Spark Foundry, Blue
449, Performics, Digitas), Publicis.Sapient
(SapientRazorfish & Sapient Consulting) and Publicis Health. Present in over 100 countries,
Publicis Groupe employs nearly 80,000 professionals.
www.publicisgroupe.com | Twitter:@PublicisGroupe
| Facebook | LinkedIn | YouTube | Viva la
Difference!
Contacts Publicis
Groupe
Peggy
Nahmany |
Corporate Communications |
+ 33
(0)1 44 43 72 83 |
peggy.nahmany@publicisgroupe.com |
Jean-Michel Bonamy |
Investor Relations |
+ 33
(0)1 44 43 77 88 |
jean-michel.bonamy@publicisgroupe.com |
Chi-Chung Lo |
Investor Relations |
+ 33
(0)1 44 43 66 69 |
chi-chung.lo@publicisgroupe.com |
Appendices
Net revenue
(1): organic
growth calculation
(million euro) |
Q1 |
Q2 |
Q3 |
Q4 |
12 months |
|
Impact of currency
at end December 2018
(million euro) |
2017 net revenue (1) |
2,267 |
2,397 |
2,185 |
2,483 |
9,332 |
|
GBP
(3) |
(9) |
Currency
impact (3) |
(217) |
(145) |
(17) |
5 |
(374) |
|
USD
(3) |
(219) |
2017 net
revenue (1) at 2018
exchange rates (a) |
2,050 |
2,252 |
2,168 |
2,488 |
8,958 |
|
Others |
(146) |
2018 net
revenue before acquisition impact (2) (b) |
2,083 |
2,203 |
2,197 |
2,481 |
8,964 |
|
Total |
(374) |
Net
revenue from acquisitions (2) |
(1) |
(5) |
- |
11 |
5 |
|
|
2018 net revenue (1) |
2,082 |
2,198 |
2,197 |
2,492 |
8,969 |
|
|
Organic growth (b/a) |
+1.6% |
-2.1% |
+1.3% |
-0.3% |
+0.1% |
|
|
Organic growth ex PHS (4) |
+1.9% |
-1.4% |
+2.2% |
+0.5% |
+0.8% |
|
|
(1) Revenue less
pass-through costs. See definition in appendix
(2) Acquisitions
(Ardent, The Abundancy, The Herd Agency, Ella Factory, SFR Studio,
Translate Plus, Plowshare, Harbor & Village, Optix, Independent
Ideas, Domaines Publics, Payer Sciences, One Digital, The Shed,
Kindred, Xebia, IDC Creation), net of disposals
(3) EUR = USD 1.180 on average in
2018 vs. USD 1.127 on average in 2017
EUR = GBP 0.885 on
average in 2018 vs. GBP 0.876 on average in 2017
(4) Publicis Groupe made
effective the disposal of Publicis Health Services in January
2019
New Business: Main wins in 2018
Mercedes-Benz (Global), Campbell
Soup Company (USA), Ricola (Global), Swarovski (France), Zhuyeqing
Tea (China), Carrefour (China), Luzhou Laojiao, Whitail (China),
Adobe (India), Asics (Singapore), P&O Ferries Holdings (UK),
Department of Transport and Main Roads - Queensland Government
(Australia), Lapp Holding AG (Germany), Hotwire (USA), Sentosa
(APAC), ABInBev (USA), Muthoot Pappachan Group (India), Kraft Heinz
(China), Tourism Fiji (Global), Red Bull (Brazil), Mentos &
Fruittella (Brazil), Hamburger Hochbahn AG (Germany), Tourism
Ireland (UK), Brand Factory (India), Monte Carlo Fashions (India),
Betway (Global), Atlantis Bahamas (Global), Western Union (Global),
Burger King (UK), Cathay Pacific (Global), Massage Envy (USA), The
J.M. Smucker Company (USA), Campbell's (Global), Samsung Visual
Display (Global), Wingstop (USA), Visionworks (USA)
7Travel (Australia), Aberdeen
Asset Management (Taiwan), Abu Dhabi DCT (UAE), Aisance (Thailand),
Almara (Middle East), American Standard (Singapore), Amplifon New
Zealand (New Zealand), Avanir (USA), Banyan Tree Group (Global),
Betadine Throat Spray (Thailand), Campbell Arnott's (Australia
& NZ), Campbell's Soup Company (North America), Che Tai
International (Taiwan), Clarins Group (France), Clas Ohlson
(Norway), Didi Chuxing (China), Dubai Corporation for Tourism &
Commerce Marketing (UAE), Easy Rent (Toyota) (Taiwan), Elizabeth
Arden (China), Etisalat Misr (Egypt), GAC Group (China), Heineken
(Taiwan), Henryk Kania (Poland), Hyderabad (HIL) Industries
(India), Iberdrola (Norway), IQIYI (Taiwan), Khumo Tyres
(Australia), Laneige (Amorepacific Group) (Taiwan), Lionsgate
Entertainment (Mexico), Lucano Group (Italy), Marriott
International (Global), Marti Derm (Bonaquet) (China), Maspex
(Poland), Mcdonald's (Middle East), Metro-Goldwyn-Mayer Studios
(USA), Mondelez International (North America), Telemundo (USA),
NIIT Ltd. (India), Ola Cabs (India), Pierre Fabre (China), Pizzardi
Editore (Italy), Porter (Taiwan), Puig (Argentina), Red Bull (USA),
Shopee (Taiwan), The Body Shop (Singapore), Victorian Electoral
Commission (Australia), ZEE5 (India), Akash Institute (India), Alfa
Romeo (China), Allianz (Taiwan), Canon (Hong Kong), Comvita (Hong
Kong), Costa Coffee (UK), DTCM (UAE), Diamond Producers Association
(China), Didi (Australia), Discover Hong Kong (Taiwan), Dunkin
Donuts (USA), Ego Pharmaceuticals (Taiwan), ENI (UAE), Football
Federation Australia (Australia), Fuji Pharma (Taiwan), Galderma
(Hong Kong, India), Genentech Inc (USA), Glovo (Italy), GOME
Electrical Appliances (China), HDFC Life (India), IKEA (Middle
East), Ixigo (India), Jacobson Medical (Hong Kong), Line
Corporation (Thailand), Lion & Globe (Hong Kong), L'Oreal
(LATAM), Macy's (USA), Mcdonald's (France), Midland Realty
(Hong Kong), Universal Kids (USA), Nonno Nanni (Italy), P&O
Ferries (EMEA), PTT Exploration and Production (Thailand), Royal
Carribbean Cruises (Hong Kong), Sensee (France), Singha Estate
(Thailand), SRL Diagnostics (India), Starbucks (Singapore), TAITRA
(Taiwan), Tencent - JOOX (Hong Kong), Thai Life (Thailand), WAVO
(UAE), Welspun (India), Whitbread (UK), Driven Brands (USA), Far
East Tone (Taiwan), Lenovo (Global), Mcdonald's (LATAM), Mondelez
International (APAC), NestBank (Poland), Nestle (Singapore), Panera
(USA), Peter's Ice Cream (India), Procter & Gamble (Australia,
NZ, Russia), Spykar (India), Starbucks (Canada), Welspun (India),
Yamaha (India), Avon Products (Global), Canal Digital (Nordics),
Coca Cola (Caribbean), Daimler - Mercedes Benz (Korea), Delivery
Hero Korea (Korea), Expo 2020 (UAE), Fiat Chrysler Automobiles
(NAM), FIO banka (Czech Republic), Generali (Czech Republic),
GlaxoSmithKline (Global), Inspire Brands (Arby's) (USA), Lactalis
(Global), Luxottica Group (Global), Nestle (Malaysia &
Singapore), Organización Nacional de Ciegos Españoles (Spain),
Singapore Government (Singapore), Tesco (Slovakia), The J.M.
Smucker Company (USA)
Carrefour (Global), Marriott
International (Global), Mercedez Benz (Global), Education
Corporation of America (USA), Medtronic (USA), Simon Property Group
(USA), Capital Group (USA)
Alexion Pharmaceuticals (USA),
AVANIR Pharmaceuticals (USA), DBV Technologies (USA), Eli Lilly
& Co. (USA), Galderma (USA), ParatekPharmaceuticals (USA),
Pfizer Inc. (UK & USA), Roche (USA), Astrazeneca (USA), Bayer
(USA), Bristol-Myers Squibb (USA), EyePoint Pharmaceuticals (USA),
Masimo Corporation (USA), Merck & Co. (USA), Novo Nordisk
(USA), Merz Aesthetics (USA), Proctor & Gamble (USA), Rhythm
Pharmaceuticals (Europe), Sarepta Therapeutics (USA), Allscripts
(USA), Edwards LifeSciences (USA), Endo Pharmaceuticals (USA),
Gilead Sciences, Inc. (USA), Purdue Pharmaceuticals (USA), Tris
Pharma, Inc. (USA), UPMC BigData (USA), Urovant Sciences (USA),
Bausch & Lomb (USA), Boehringer Ingelheim (USA),
GlaxoSmithKline (USA), Novartis (USA), Spark Therapeutics (USA)
2018 press
releases
05-01-2018 Publicis
Groupe half-year financial statement liquidity contract
22-01-2018 Nick Law Joins
Publicis as Chief Creative Officer of Publicis Groupe and President
of Publicis Communications
23-01-2018 Carrefour
group signs strategic partnership with Publicis.Sapient to
accelerate its digital transformation
23-01-2018 Press release
"Anonymous Letter"
29-01-2018 Publicis
Groupe and Microsoft Announce Partnership for Marcel AI
Platform
01-02-2018 Publicis
Groupe Announces Global Leadership Promotions Across its Solutions
& Regions
01-02-2018 Loris Nold
appointed to the newly created role of CEO of Publicis Groupe
APAC
01-02-2018 Alexandra von
Plato Appointed Chief Executive Officer of Publicis Health
08-02-2018 Publicis
Groupe : 2017 Annual Results
14-02-2018 Viva Tech
2018
14-02-2018 Leo Burnett
Chicago Names Kieran Ots EVP, Executive Creative Director
26-02-2018 Robett Hollis
and FrontSide join Saatchi & Saatchi New Zealand
28-02-2018 Saatchi &
Saatchi New Zealand wins global Tourism Fiji account
05-03-2018 Brill and
Crovitz announce launch of NewsGuard to fight fake news
20-03-2018 Publicis 2020:
Sprint To The Future
27-03-2018 Publicis
Groupe Named 2018 Adobe Experience Cloud Partner of the Year
29-03-2018 Publicis Media
launches Global Commerce capability to manage the intersection of
media and marketplaces
10-04-2018 Leo Burnett
wins international Betfair account
19-04-2018 Publicis
Groupe: Q1 2018 revenue
23-04-2018 2017
Registration Document available
25-04-2018 Publicis
Groupe appoints leadership team to lead Indian market
30-04-2018 Publicis Media
aligns EMEA & APAC markets under unified leadership
24-05-2018 Publicis
Groupe unveils Marcel
28-05-2018 Combined
General Shareholders' Meeting
13-06-2018 Tom Kao
appointed as Publicis Groupe Hong Kong CEO
22-06-2018 Publicis
Groupe clients champion creativity in Cannes
26-06-2018 Publicis
Groupe appoints Raja Trad to the newly created role of Chairman
Middle East
03-07-2018
Publicis.Sapient boosts digital business transformation capability
with global engineering executive hires
04-07-2018 Statement
06-07-2018 Impact of
application of IFRS15 and IFRS16 accounting standards
12-07-2018 Publicis
Groupe Expands its Country Model to Cover All of its Markets
17-07-2018 Lenovo
Appoints Publicis Media Bespoke Unit to Handle Global Media
Strategy, Planning and Buying
17-07-2018 Publicis
Health Acquires Payer Sciences
18-07-2018 Publicis
Groupe Appoints Leader in Ukraine
18-07-2018 Publicis
Groupe: First Half 2018 Results
01-08-2018 Publicis
Communications acquires One Digital in Brazil
03-08-2018 Overview of
the share buyback program authorized by the Combined Ordinary and
Extraordinary General shareholders' Meeting of May 30, 2018
03-08-2018 Half-year
financial report ended June 30,2018
07-08-2018 Publicis
Groupe pays tribute to Joël Robuchon
08-08-2018 Publicis
Groupe announces new appointments in Israel
05-09-2018 Publicis
Groupe announces leadership appointments in Russia
12-09-2018 The Publicis
Groupe Management Board
18-09-2018 Publicis Media
agencies named a leader and a strong performer by independent
research firm
20-09-2018 Publicis Media
advances commerce practice with regional leadership
appointments
26-09-2018 Publicis
Groupe announces leadership appointments in Poland
02-10-2018 Publicis
Groupe Announces UK Country Leadership Team Headed by CEO, Annette
King
04-10-2018 Publicis
Groupe Acquires Kindred Group in Czech Republic
18-10-2018 Publicis
Groupe: Third Quarter 2018 Revenue
22-10-2018 Publicis
Groupe announces its plans to purchase Xebia France
24-10-2018 Publicis
Groupe appoints Jane Lin-Baden as Managing Partner Asia Pacific
24-10-2018 Publicis
Groupe Announces Regional and Local Leadership Appointments in
Nordics
25-10-2018 Maurice Lévy
Recognized for his Outstanding Contribution to Peace and
Innovation
25-10-2018 VivaStories
When Startuppers Connect with Established Companies at Viva
Technology
29-10-2018 Publicis
Groupe Names Leadership Team in LATAM; Expands Country Model to
Mexico
31-10-2018 Diana Littman
Joins Publicis Groupe as CEO, MSL US
01-11-2018 Publicis
Groupe appoints Chief Strategy Officer in Japan
06-12-2018 Vittorio
Bonori Appointed Publicis Groupe Italy CEO
10-12-2018 Press
Release
11-12-2018 Publicis
Groupe Appoints Regional Chief Operating Officer for Northern &
Central Europe
20-12-2018 Publicis
Groupe announces its intention to acquire Soft Computing
Definitions
Net revenue or
Revenue less pass-through costs: Pass-through costs mainly
concern production and media activities, as well as various
expenses incumbent on clients. These items that can be re-billed to
clients do not come within the scope of assessment of operations,
net revenue is a more relevant indicator to measure the operational
performance of the Groupe's activities.
Organic
growth: Change in net revenue excluding the impact of
acquisitions, disposals and currencies.
EBITDA:
Operating margin before depreciation.
Operating
margin: Revenue after personnel costs, other operating expenses
(excl. non-current income and expense) and depreciation (excl.
amortization of intangibles arising on acquisitions).
Operating margin
rate: Operating margin as a percentage of net revenue.
Headline Group
Net Income: Net income attributable to the Groupe, after
elimination of impairment charges / real estate transformation
expenses, amortization of intangibles arising on acquisitions, the
main capital gains (or losses) on disposals, change in the fair
value of financial assets, the impact of US tax reform and the
revaluation of earn-out costs.
EPS (Earnings per
share): Group net income divided by average number of shares,
not diluted.
EPS, diluted
(Earnings per share, diluted): Group net income divided by
average number of shares, diluted.
Headline EPS,
diluted (Headline Earnings per share, diluted): Headline group
net income, divided by average number of shares, diluted.
Capex: Net
acquisitions of tangible and intangible assets, excluding financial
investments and other financial assets.
Free Cash Flow
before changes in working capital requirements: Net cash flow
from operating activities less interests paid & received,
repayment of lease liabilities & related interests and changes
in WCR linked to operating activities
Free Cash
Flow: Net cash flow from operating activities less interests
paid & received, repayment of lease liabilities & related
interests
Net Debt (or
financial net debt): Sum of long and short financial debt and
associated derivatives, net of treasury and cash equivalents.
Average net
debt: Average of monthly net debt at end of month.
Dividend
pay-out: Dividend per share / Headline diluted EPS.
Consolidated
income statement
(in
millions of euros) |
|
30
2018 ([3])
(6 months) |
2017 ([4]) |
|
Net revenue([5]) |
|
8,969 |
9,332 |
|
Pass-through revenue
|
|
982 |
914 |
|
Revenue |
|
9,951 |
10,246 |
|
Personnel
expenses
Other operating expenses
|
|
(5,747)
(2,155) |
(5,977)
(2,603) |
|
Operating margin before
depreciation & amortization |
|
2,049 |
1,666 |
|
Depreciation and amortization expense
(excluding intangibles arising from acquisitions)
|
|
(526) |
(161) |
|
Operating Margin |
|
1,523 |
1,505 |
|
Amortization of intangibles arising from acquisitions |
|
(69) |
(73) |
|
Impairment
loss |
|
(131) |
(115) |
|
Non-current income and expense
|
|
(20)
|
(1)
|
|
Operating income |
|
1,303 |
1,316 |
|
Financial
expenses
Financial income
Cost of net financial debt
Revaluation of earn-out payments on acquisitions
Other financial income and expenses
|
|
(81)
70
(11)
(13)
(60) |
(101)
50
(51)
(66)
(10) |
|
Pre-tax income of
consolidated companies |
|
1,219 |
1,189 |
|
Income
taxes
|
|
(285) |
(312) |
|
Net income of consolidated
companies |
|
934 |
877 |
|
Share of
profit of associates
|
|
(4) |
(5) |
|
Net income |
|
930 |
872 |
|
Of
which:
- Net income attributable to
non-controlling interests
|
|
11 |
10 |
|
Net income attributable to
equity holders of the parent company |
|
919 |
862 |
|
Data per share (in euros)
- Net income attributable
to equity holders of the parent company |
|
|
|
Number of shares |
|
229,231,677 |
226,384,707 |
|
EARNINGS
PER SHARE |
|
4.01 |
3.81 |
|
|
|
|
|
|
Number of diluted shares |
|
234,564,382 |
230,673,578 |
|
DILUTED
EARNINGS PER SHARE |
|
3.92 |
3.74 |
|
Consolidated statement of comprehensive income
(in millions of euros) |
|
2018
|
2017
|
Net income for the year
(A) |
|
930 |
872 |
|
|
|
|
Comprehensive income that will not be reclassified
to income statement
|
|
|
|
-
Actuarial gains (and losses) on defined benefit plans |
|
22 |
13 |
-
Deferred taxes on comprehensive income that will not be
reclassified to income statement |
|
(2) |
28 |
Comprehensive income that may be reclassified to
income statement
|
|
|
|
-
Remeasurement of hedging instruments |
|
6 |
(9) |
-
Consolidation translation adjustments |
|
73 |
(597) |
Total other comprehensive
income (b) |
|
99 |
(565) |
|
|
|
|
Total comprehensive income
for the year (a) + (b) |
|
1,029 |
307 |
Of
which: |
|
|
|
-
Total comprehensive income attributable to non-controlling
interests
|
|
10 |
5 |
- Total comprehensive income attributable to equity holders of the
parent company
|
|
1,019 |
302 |
Consolidated balance sheet
(in millions of euros) |
|
December 31, 2018 (1) |
December 31, 2017(2) |
Assets |
|
|
|
Goodwill, net |
|
8,751 |
8,450 |
Intangible assets, net |
|
1,125 |
1,124 |
Right-of-use assets related to leases |
|
1,732 |
- |
Property, plant and equipment, net |
|
611 |
590 |
Deferred tax assets |
|
150 |
130 |
Investments in associates |
|
62 |
64 |
Other
financial assets |
|
215 |
169 |
Non-current assets |
|
12,646 |
10,527 |
Inventories and work-in-progress |
|
367 |
385 |
Trade
receivables |
|
9,115 |
8,907 |
Assets
on contracts |
|
874 |
843 |
Other
current receivables and assets |
|
689 |
649 |
Cash
and cash equivalents |
|
3,206 |
2,407 |
Assets
held for sale |
|
183 |
62 |
Current assets |
|
14,434 |
13,253 |
|
|
|
|
Total assets |
|
27,080 |
23,780 |
Equity and liabilities |
|
|
|
Share
capital |
|
94 |
92 |
Additional paid-in capital and retained earnings, Group share |
|
6,759 |
5,864 |
Equity attributable to
holders of the parent company |
|
6,853 |
5,956 |
Non-controlling
interests |
|
0 |
2 |
Total equity |
|
6,853 |
5,958 |
Long-term
borrowings |
|
2,425 |
2,780 |
Long-term lease liabilities |
|
1,648 |
- |
Deferred tax liabilities |
|
446 |
419 |
Long-term provisions |
|
384 |
415 |
Non-current liabilities |
|
4,903 |
3,614 |
Trade
payables |
|
12,176 |
11,541 |
Liabilities on contracts |
|
284 |
423 |
Short-term borrowings |
|
449 |
350 |
Short-term lease liabilities |
|
393 |
- |
Income
taxes payable |
|
365 |
389 |
Short-term provisions |
|
125 |
98 |
Other
creditors and current liabilities |
|
1,432 |
1,391 |
Liabilities held for sale |
|
100 |
16 |
Current liabilities |
|
15,324 |
14,208 |
|
|
|
|
Total equity and
liabilities |
|
27,080 |
23,780 |
Consolidated statement of cash flows
(in
millions of euros) |
2018
|
2017 (2) |
Cash
flows from operating activities |
|
|
Net income |
930 |
872 |
Neutralization of
non-cash income and expenses: |
|
|
Income taxes |
285 |
312 |
Cost of net financial
debt |
11 |
51 |
(Gains) losses on
disposal of assets (before tax) |
20 |
- |
Depreciation,
amortization and impairment loss |
726 |
349 |
Share-based
compensation |
63 |
55 |
Other non-cash income
and expenses |
76 |
74 |
Share of profit of
associates |
4 |
5 |
Dividends received
from associates |
2 |
2 |
Taxes paid |
(328) |
(264) |
Change in working
capital requirements (1) |
153 |
69 |
Net cash flows generated by (used in) operating
activities (I) |
1,942 |
1,525 |
Cash
flows from investing activities |
|
|
Purchases of property,
plant and equipment and intangible assets |
(207) |
(136) |
Disposals of property,
plant and equipment and intangible assets |
11 |
5 |
Purchases of
investments and other financial assets, net |
(11) |
2 |
Acquisitions of
subsidiaries |
(260) |
(289) |
Disposals of
subsidiaries |
19 |
1 |
|
|
|
Net cash flows generated by (used in) investing
activities(II) |
(448) |
(417) |
Cash
flows from financing activities |
|
|
Dividends paid to
equity holders of the parent company |
(210) |
(170) |
Dividends paid to
non-controlling interests |
(10) |
(10) |
Proceeds from
borrowings |
11 |
19 |
Repayment of
borrowings |
(159) |
(27) |
Repayment of lease
liabilities |
(374) |
- |
Interest paid on lease
liabilities |
(58) |
- |
Financial interest
paid (2) |
(69) |
(90) |
Financial interest
received (2) |
66 |
52 |
Net purchases of
non-controlling interests |
(21) |
(35) |
Net (purchases)/sales
of treasury shares and warrants |
9 |
(291) |
Net cash flows generated by (used in) financing
activities (III) |
(815) |
(552) |
Impact of exchange rate fluctuations
(IV)
|
133 |
(379) |
CHANGE IN CONSOLIDATED CASH AND CASH EQUIVALENTS
(I + II + III + IV) |
812 |
177 |
Cash and cash
equivalents on January 1 |
2,407 |
2,228 |
Bank overdrafts on
January 1 |
(27) |
(25) |
Net
cash and cash equivalents at beginning of year (V) |
2,380 |
2,203 |
Net cash and cash
equivalents at end of year |
3,206 |
2,407 |
Bank overdrafts at end
of year |
(14) |
(27) |
Net
cash and cash equivalents at end of year (VI) |
3,192 |
2,380 |
Change in consolidated cash and cash equivalents
(VI - V) |
812 |
177 |
(1)
Breakdown of change in working capital requirements |
|
|
Change in inventory
and work-in-progress |
42 |
(17) |
Change in trade
receivables and other receivables |
(274) |
(693) |
Change in accounts
payable, other payables and provisions |
385 |
779 |
Change in working capital requirements |
153 |
69 |
(2) Financial interest has been reclassified to Net cash flows
generated by (used in) financing activities.
Consolidated statement of changes in equity
Number of
outstanding shares |
(in millions of
euros) |
Share
capital
|
Additional
paid-in capital |
Reserves and
earnings brought forward |
Translation
reserve
|
Fair value
reserve |
Equity
attributable to equity holders of the parent company |
Non-controlling interests |
Total
equity |
|
|
|
226,295,805 |
December 31, 2017 |
92 |
3,680 |
2,326 |
(337) |
195 |
5,956 |
2 |
5,958 |
|
|
First-time application of IFRS 16 |
|
|
10 |
|
|
10 |
|
10 |
|
226,295,805 |
January 1, 2018 |
92 |
3,680 |
2,336 |
(337) |
195 |
5,966 |
2 |
5,968 |
|
|
Net
income |
|
|
919 |
|
|
919 |
11 |
930 |
|
|
Other
comprehensive income, net of tax |
|
|
|
74 |
26 |
100 |
(1) |
99 |
|
|
Total comprehensive income for the year |
|
|
919 |
74 |
26 |
1,019 |
10 |
1,029 |
|
4,323,480 |
Dividends |
2 |
243 |
(455) |
|
|
(210) |
(10) |
(220) |
|
210,612 |
Share-based compensation, net of tax |
|
|
63 |
|
|
63 |
|
63 |
|
|
Effect of
acquisitions and commitments to buy out non-controlling
interests |
|
|
(1) |
|
|
(1) |
(2) |
(3) |
|
87,984 |
Stock
warrant exercise |
0 |
3 |
|
|
|
3 |
|
3 |
|
322,427 |
(Purchases)/sales of treasury shares |
|
|
13 |
|
|
13 |
|
13 |
|
231,240,308 |
December 31, 2018 |
94 |
3,926 |
2,875 |
(263) |
221 |
6,853 |
- |
6,853 |
|
Number of
outstanding shares |
(in millions of
euros) |
Share
capital
|
Additional
paid-in capital |
Reserves and
earnings brought forward |
Translation
reserve
|
Fair value
reserve |
Equity
attributable to equity holders of the parent company |
Non-controlling interests |
Total
equity |
|
|
|
225,367,784 |
January 1, 2017 |
90 |
3,429 |
2,118 |
255 |
163 |
6,055 |
10 |
6,065 |
|
|
Net
income |
|
|
862 |
|
|
862 |
10 |
872 |
|
|
Other
comprehensive income, net of tax |
|
|
|
(592) |
32 |
(560) |
(5) |
(565) |
|
|
Total comprehensive income for the year |
|
|
862 |
(592) |
32 |
302 |
5 |
307 |
|
3,992,216 |
Dividends |
2 |
242 |
(414) |
|
|
(170) |
(10) |
(180) |
|
383,457 |
Share-based compensation, net of tax |
|
|
53 |
|
|
53 |
|
53 |
|
|
Effect of
acquisitions and commitments to buy out non-controlling
interests |
|
|
7 |
|
|
7 |
(3) |
4 |
|
306,665 |
Stock
warrant exercise |
|
9 |
|
|
|
9 |
|
9 |
|
(3,754,317) |
Purchases/sales of treasury shares |
|
|
(300) |
|
|
(300) |
|
(300) |
|
226,295,805 |
December 31, 2017 |
92 |
3,680 |
2,326 |
(337) |
195 |
5,956 |
2 |
5,958 |
|
Impact of IFRS16 on the opening balance sheet
(in millions of euros) |
Information December 31, 2017 restated (1) |
Initial
application
of IFRS 16 |
Information
January 1, 2018
with IFRS 16 |
Assets |
|
|
|
Rights-of-use assets
related to leases |
- |
1,906 |
1,906 |
Property, plant and
equipment, net |
590 |
(43) |
547 |
Other financial
assets |
169 |
23 |
192 |
Other non-current
assets |
9,768 |
- |
9,768 |
Other current
receivables and current assets |
649 |
(4) |
645 |
Other current
assets |
12,604 |
- |
12,604 |
Total assets |
23,780 |
1,882 |
25,662 |
|
|
|
|
Equity and liabilities |
|
|
|
Total
equity |
5,958 |
10 |
5,968 |
Long-term
borrowings |
2,780 |
(89) |
2,691 |
Long-term lease
liabilities |
- |
1,681 |
1,681 |
Long-term
provisions |
415 |
(11) |
404 |
Other |
419 |
- |
419 |
Non-current liabilities |
3,614 |
1,581 |
5,195 |
Short-term lease
liabilities |
|
356 |
356 |
Short-term
provisions |
107 |
(4) |
103 |
Other creditors and
current liabilities |
1,391 |
(61) |
1,330 |
Other |
12,534 |
- |
12,534 |
Current liabilities |
14,032 |
291 |
14,323 |
|
|
|
|
Total equity and liabilities |
23,780 |
1,882 |
25,662 |
(1)
In accordance with IFRS 15 and IFRIC 23 Interpretation applied as
of January 1, 2018, comparative data from previous period have been
restated.
Impact of IFRS 16 on the consolidated balance
sheet
(in millions of euros) |
Information
December 31, 2018 published |
IFRS 16
impacts |
Information
December 31, 2018
with IAS 17 |
Information December 31, 2017 restated (1) |
Assets |
|
|
|
|
Rights-of-use assets
related to leases |
1,732 |
(1,732) |
- |
- |
Property, plant and
equipment, net |
611 |
42 |
653 |
590 |
Deferred tax
assets |
150 |
(9) |
141 |
130 |
Other financial
assets |
215 |
(19) |
196 |
169 |
Other current
receivables and current assets |
689 |
19 |
708 |
649 |
Assets available for
sale |
183 |
(24) |
159 |
62 |
Other |
23,500 |
2 |
23,502 |
22,180 |
Total assets |
27,080 |
(1,721) |
25,359 |
23,780 |
|
|
|
|
|
Equity and liabilities |
|
|
|
|
Total
equity |
6,853 |
13 |
6,866 |
5,958 |
Long-term
borrowings |
2,425 |
93 |
2,518 |
2,780 |
Long-term lease
liabilities |
1,648 |
(1
648) |
- |
- |
Long-term
provisions |
384 |
9 |
393 |
415 |
Other |
446 |
- |
446 |
419 |
Non-current liabilities |
4,903 |
(1 546) |
3,357 |
3,614 |
Short-term lease
liabilities |
393 |
(393) |
- |
- |
Short-term
provisions |
125 |
35 |
160 |
98 |
Other creditors and
current liabilities |
1,432 |
194 |
1,626 |
1,391 |
Liabilities available
for sale |
100 |
(26) |
74 |
16 |
Other |
13,274 |
2 |
13,276 |
12,703 |
Current liabilities |
15,324 |
(188) |
15,136 |
14,208 |
|
|
|
|
|
Total equity and liabilities |
27,080 |
(1 721) |
25,359 |
23,780 |
(1)
In accordance with IFRS 15 and IFRIC 23 Interpretation applied as
of January 1, 2018, comparative data from previous period have been
restated.
Impact of IFRS 16 on the Consolidated Income
Statement
(in
millions of euros) |
Information
December 31, 2018
published |
IFRS 16
impacts |
Information
December 31, 2018 with IAS 17 |
Information December 31, 2017 restated (1) |
Revenue |
9,951 |
- |
9,951 |
10,246 |
Personnel
expenses |
(5,747) |
- |
(5,747) |
(5,977) |
Depreciation and
amortization expense
(excluding intangibles from acquisitions) |
(526) |
375 |
(151) |
(161) |
Other operating
expenses |
(2,155) |
(397) |
(2,552) |
(2,603) |
Operating margin |
1,523 |
(22) |
1,501 |
1,505 |
|
|
|
|
|
Operating income |
1,303 |
(22) |
1,281 |
1,316 |
Cost of financial
debt |
(11) |
(11) |
(22) |
(51) |
Revaluation of
earn-out payments on acquisitions |
(13) |
- |
(13) |
(66) |
Other financial income
and expenses |
(60) |
66 |
6 |
(10) |
Pre-tax income of consolidated companies |
1,219 |
33 |
1,252 |
1,189 |
Income taxes |
(285) |
(8) |
(293) |
(312) |
Net income of consolidated companies |
934 |
25 |
959 |
877 |
Share of profit of
associates |
(4) |
- |
(4) |
(5) |
Net income |
930 |
25 |
955 |
872 |
Of which:
- Net income attributable to minority interests |
11 |
- |
11 |
10 |
Group net income |
919 |
25 |
944 |
862 |
(1)
In accordance with IFRS 15 and IFRIC 23 Interpretation applied as
of January 1, 2018, comparative data from previous period have been
restated.
Impact of IFRS 16 on the Consolidated Statement of Cash
Flows
(in
millions of euros)
|
Information
December 31, 2018
published |
IFRS 16
impacts |
Information
December 31, 2018
with IAS 17 (1) |
Information
December 31, 2017
restated (2) |
December 31, 2018 |
|
|
|
|
Cash
flows from operating activities |
|
|
|
|
Net income |
930 |
25 |
955 |
872 |
Neutralization of
non-cash income and expenses: |
|
|
|
|
Income taxes |
285 |
8 |
293 |
312 |
Cost of net financial
debt |
11 |
11 |
22 |
51 |
Depreciation,
amortization and impairment loss |
726 |
(463) |
263 |
349 |
Other non-cash income
and expenses |
76 |
22 |
98 |
74 |
Other |
(239) |
- |
(239) |
(202) |
Change in working
capital requirements |
153 |
(24) |
129 |
69 |
Net cash flows generated by (used in) operating
activities (I) |
1 942 |
(421) |
1 521 |
1,525 |
Cash
flows from investing activities |
|
|
|
|
Net cash flows generated by (used in) investing
activities(II) |
(448) |
- |
(448) |
(417) |
Cash
flows from financing activities |
|
|
|
|
Repayment of lease
liabilities |
(374) |
374 |
- |
- |
Interest paid on lease
liabilities |
(58) |
58 |
- |
- |
Interest paid |
(69) |
(11) |
(80) |
(90) |
Others |
(314) |
- |
(314) |
(462) |
Net cash flows generated by (used in) financing
activities (III) |
(815) |
421 |
(394) |
(552) |
Impact of exchange rate fluctuations (IV) |
133 |
- |
133 |
(379) |
Change in consolidated cash and cash equivalents
(I + II + III + IV) |
812 |
- |
812 |
177 |
-
As from January 1, 2018, interest was
reclassified under Cash flows from financing activities
-
In accordance with IFRS 15 and IFRIC 23
Interpretation applied as of January 1, 2018, comparative data from
previous period have been restated.
Earnings per
share
(basic and
diluted)
(in millions of euros, except for share
data) |
|
2018 |
2017 |
Net income used for the calculation of earnings
per share |
|
|
|
Group net income |
A |
919 |
862 |
Impact of dilutive instruments: |
|
|
|
- Savings
in financial expenses related to the conversion of debt
instruments, net of tax |
|
- |
- |
Group net income -
diluted |
B |
919 |
862 |
Number of shares used to calculate earnings per
share |
|
|
|
Number of shares at
January 1 |
|
230,627,725 |
225,945,387 |
Shares created over
the year |
|
2,426,498 |
2,529,801 |
Treasury shares to be
deducted (average for the year) |
|
(3,822,546) |
(2,090,481) |
Average number of
shares used for the calculation |
C |
229,231,677 |
226,384,707 |
Impact of dilutive instruments: |
|
|
|
- Free shares and
dilutive stock options (1) |
|
4,815,491 |
3,682,435 |
- Equity warrants
(1) |
|
517,214 |
606,436 |
Number of diluted
shares |
D |
234,564,382 |
230,673,578 |
(in
euros) |
|
|
|
Earnings per share |
A/C |
4.01 |
3.81 |
|
|
|
|
Diluted earnings per share (1) |
B/D |
3.92 |
3.74 |
(1)
Only stock options and warrants with a dilutive impact, i.e. whose
strike price is lower than the average strike price, are included
in the calculation. At December 31, 2018 and 2017, all stock
options and warrants not yet exercised at the reporting date had a
dilutive impact on the current basic earnings per share.
Headline
earnings per share
(basic and diluted)
(in millions of euros, except
for share data) |
|
2018 |
2017 |
Net income used to calculate headline earnings per
share(1) |
|
|
|
Group net income |
|
919 |
862 |
Items
excluded: |
|
|
|
|
|
55 |
55 |
|
|
103 |
115 |
|
|
10 |
-
|
|
|
(18) |
(61) |
|
|
13 |
66 |
Headline Group net
income |
E |
1,082 |
1,037 |
Impact of dilutive instruments:
|
|
|
|
|
|
- |
- |
Headline Group net
income, diluted |
F |
1,082 |
1,037 |
|
|
|
|
Number of shares used to calculate earnings per
share |
|
|
|
Number of shares at
January 1 |
|
230,627,725 |
225,945,387 |
Shares created over
the year |
|
2,426,498 |
2,529,801 |
Treasury shares to be
deducted (average for the year) |
|
(3,822,546) |
(2,090,481) |
Average number of
shares used for the calculation |
C |
229,231,677 |
226,384,707 |
Impact of dilutive instruments: |
|
|
|
|
|
4,815,491 |
3,682,435 |
|
|
517,214 |
606,436 |
Number of diluted shares |
D |
234,564,382 |
230,673,578 |
(in
euros) |
|
|
|
Headline earnings per share (1) |
E/C |
4.72 |
4.58 |
|
|
|
|
Headline earnings per share - diluted (1) |
F/D |
4.61 |
4.50 |
-
EPS after elimination of impairment losses,
amortization of intangibles from acquisitions, the main capital
gains (losses) on disposal of assets, the impact of the American
fiscal reform and the revaluation of earn-out payments on
acquisitions.
-
At December 31, 2018, this amount corresponds to
impairment losses on rights-of-use assets related to leases of euro
114 million and impairment losses on available for sale assets for
euro 14 million.
[1]
Excluding earn-outs and buy-outs, and including the announced
project to acquire Soft Computing
[2]
Excluding earn-outs and buy-outs, and including the announced
project to acquire Soft Computing
(1) The financial statements at December 31, 2018
were prepared with the early application of IFRS 16 (use of the
prospective method without restating the previous year)
(2) In accordance with IFRS 15 and the IFRIC 23
interpretation, applied as of January 1, 2018, the comparative
information for 2017 was restated.
(3) Net revenue: Revenue less pass-through costs.
Pass-through costs mainly concern production and media activities,
as well as various expenses incumbent on clients. These items that
can be re-billed to clients do not come within the scope of
assessment of operations, net revenue is a more relevant indicator
to measure the operational performance of the Groupe's
activities.
(1) The
financial statements at December 31, 2018 were prepared with the
early application of IFRS 16 (use of the prospective method without
restating the previous year)
(2)
In accordance with IFRS 15 and the IFRIC 23 interpretation, applied
as of January 1, 2018, the comparative information for 2017 was
restated.
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Publicis Groupe via Globenewswire
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