Publicis Groupe: 2015 First Half Results
(Thomson Reuters ONE) -
July 22, 2015
PRESS RELEASE
PUBLICIS GROUPE
First-half 2015 results
1(st )half 2015
+------------------------------------------------------------------------------+
| |
|(million euros) H1 2015 H1 2015 |
| vs. H1 2014 |
| |
| * Revenue 4,542 +35.3% |
| |
| * Operating margin 589 +35.4% |
| |
| * Operating margin as a % of 13.0% --|
| revenue |
| |
| * Net income, attributable 363 +39.6% |
| to the group |
| |
| * Headline EPS, diluted 1.68 +28.2% |
| (euros) ((1)) |
| |
| * Free cash-flow ((2)) 458 +55.8% |
| |
| |
+------------------------------------------------------------------------------+
(1) After elimination of impairment charge, amortization of intangibles arising
from acquisitions, main capital gains (or losses) on disposals and revaluation
of earn-out payments
(2) Before change in Working Capital Requirements (WCR)
2(nd) quarter 2015
+----------------------------------------------------------------------------+
| |
|(million euros) Q2 2015 Q2 2015 |
| vs. Q2 2014 |
| |
| * Revenue 2,439 +38.5% |
| |
| * Growth at constant exchange rates +20.5% |
| |
| * Organic growth +1.4%|
| |
| |
+----------------------------------------------------------------------------+
Maurice Lévy, Chairman and CEO of Publicis Groupe:
"Publicis Groupe has produced solid performance levels in the first half of
2015. The combined effects of the Sapient acquisition, the strengthening of the
dollar and the good work put in by our staff have considerably improved our key
figures: with revenue rising 35.3%, our operating margin up 35.4% with operating
margin rate reaching 13% of revenue, net income attributable to the Groupe
progressing by 39.6%, and, finally, diluted headline diluted EPS increased by
28.2%.
Digital activities accounted for over half our revenue in this first half-year,
as did our operations in America.
By increasing our free cash flow by close to 56%, we have demonstrated the
Groupe's strength and the quality of our business model, as borne out by the
magnitude and the recurring nature of the cash flows we generate.
As we expected, Publicis Groupe upped its performance in the second quarter of
2015, with reported revenue growing in excess of 38% and organic growth of 1.4%.
I would like to express my heartfelt thanks to all our clients for the trust
they have placed in us, and congratulate our people for their unrelenting
efforts in a world that is constantly changing.
The Sapient integration is not only going to plan, it is slightly ahead of
schedule. Most importantly, it is fulfilling promises that exceed our strategic
valuation of the company. In tomorrow's world, which will be defined by
digital, data compiling and processing as well as technological investment in
marketing, Sapient's contribution will make it an acquisition of great quality
that enables us to help our clients develop and transform themselves. None of
our competitors is capable, on a standalone basis, of providing a complete range
of services from consulting and technology right up to the execution of
communications programs.
With our offering positioned all along the value chain, we can offer our people
great career prospects, provide ever-better service to our clients, while
putting new market opportunities to best advantage.
For the second half-year of 2015, we are confirming our guidance of accelerated
organic growth. Over the full year, Publicis Groupe should deliver excellent
levels of performance including double-digit increase of our revenue, operating
margin, and headline EPS. Free cash flow before changes in working capital
requirements should exceed the billion euro mark for the first time in our
history."
Publicis Groupe's Supervisory Board met on July 22, 2015, under the chairmanship
of Elisabeth Badinter, to examine the first half-year accounts at June 30, 2015
presented by Maurice Lévy, Chairman of the Management Board.
1 - KEY FIGURES
------------------------------------------------------------------------
Million euros, excepting % H1 2015 H1 2014 H1 2015
and per share data (in euros) vs. H1 2014
------------------------------------------------------------------------
Revenue 4,542 3,358 +35.3%
Operating margin 675 493 +36.9%
before depreciation & amortization
% of revenue 14.9% 14.7% +20bps
Operating margin 589 435 +35.4%
% of revenue 13.0% 13.0% --
Operating income 554 395 +40.3%
Net income, attributable to the group 363 260 +39.6%
Headline earnings per share (diluted) ((1)) 1.68 1.31 +28.2%
------------------------------------------------------------------------
Free cash-flow before change in WCR 458 294 +55.8%
------------------------------------------------------------------------
(1) After elimination of impairment charges, amortization of intangibles arising
from acquisitions, main capital gains (or losses) on disposals and valuation of
earn-out payments
2 - BUSINESS ACTIVITY IN THE FIRST HALF OF 2015
In an economic environment that remained complex and uncertain, Publicis Groupe
recorded Q2 organic growth in line with its guidance and slightly up on the
organic growth it reported for the first quarter of 2015.
2.1 - Q2 2015 revenue
Publicis Groupe's consolidated revenue for the second quarter of 2015 was 2,439
million euros, up 38.5% from 1,761 million euros for the corresponding period in
2014.
With over 50% of revenue exposed to the dollar and sterling, exchange rates had
a 263 million euros positive impact on revenue, i.e. 14.9% of Q2 2014 revenue.
Acquisitions contributed 387 million euros, i.e. 22.0% of Q2 2014 revenue.
Organic growth was 1.4%. This increase was notably made possible by the
relatively steady increase in digital activities (+5.2%).
Breakdown of Q2 2015 revenue by region
---------------------------------------------------------------
Million Revenue Organic Reported
---------------------
euros Q2 2015 Q2 2014 growth growth
---------------------------------------------------------------
Europe 681 552 +2.3% +23.4%
North America 1,323 842 +1.5% +57.1%
Asia Pacific 265 207 +3.3% +28.0%
Latin America 101 103 -5.3% -1.9%
Middle East / Africa 69 57 -2.4% +21.1%
---------------------------------------------------------------
Total 2,439 1,761 +1.4% +38.5%
---------------------------------------------------------------
2.2 - H1 2015 revenue
Publicis Groupe's consolidated revenue for the first half-year 2015 was 4,542
million euros, up 35.3% from 3,358 million euros in H1 2014.
With over 50% of revenue exposed to the dollar and sterling and with USD / EUR
and GBP / EUR exchange rates progressing 22.9% and 12.2% respectively, exchange
rates had a 478 million euros positive impact on revenue, i.e. 14.2% of H1 2014
revenue. Expressed in dollars, the Groupe's revenue in H1 2015 was 5,064 million
dollars, up 10.1%.
Acquisitions contributed 661 million euros, i.e. 19.7% of H1 2014 revenue. It
should be noted that Sapient's contribution to H1 2015 also benefited from the
strengthening of the dollar, given its exposure to this currency (67% of its
revenue).
Organic growth was 1.2% due mainly to relatively sustained growth in digital
activities (+5.0%) which now account for 50.9% of revenue.
Breakdown of H1 2015 revenue by region
---------------------------------------------------------------
Million Revenu Organic Reported
---------------------
euros H1 2015 H1 2014 growth growth
---------------------------------------------------------------
Europe 1,269 1,046 +1.8% +21.3%
North America 2,475 1,637 +1.2% +51.2%
Asia Pacific 486 384 +3.1% +26.6%
Latin America 191 195 -5.3% -2.1%
Middle East / Africa 121 96 +0.4% +26.0%
---------------------------------------------------------------
Total 4,542 3,358 +1.2% +35.3%
---------------------------------------------------------------
Europe achieved revenue growth of 21.3%. After factoring out acquisitions and
exchange rates, organic growth stood at 1.8%. France and Germany posted growth
of 1.4% and 8% respectively. In the UK, Publicis has been experiencing
challenges that arose in Q2 2014. H1 2015 organic growth was -2.1% but recovery
is on the way with trends in Q2 showing an improvement compared to Q1. The
southern European countries returned to positive growth (+0.4%). Digital
activities posted strong growth (10.1%).
North America saw its revenue grow by 51.2%. When acquisitions and the impact of
exchange rates are factored out, organic growth stands at 1.2%, a modest
increase due to weak growth in digital activities (+1.6%) as a result of
difficulties since Q2 2014.
Asia Pacific reported growth of 26.6% and organic growth was 3.1% with good
performance notably in India (+14.7%) and a return to positive growth in the
second quarter in mainland China (+4.6%) after several quarters in decline.
Latin America posted negative growth of 2.1% with organic growth of -5.3%,
notably weighed down by Brazil (-5.7%), which remains impacted by difficult
economic conditions.
The Middle East & Africa saw its revenue increase by 26.0% (organic growth of
+0.4%).
3 - REVIEW OF KEY FIGURES
3.1 - Operating margin and Operating income
The Operating margin before Depreciation and Amortization was 675 million euros
in the first half of 2015, up 36.9% from the corresponding period in 2014 (493
million euros). Expressed as a percentage of revenue, the Operating margin
before Depreciation and Amortization rose 20 basis points to 14.9%.
- Personnel costs amounted to 2,944 million euros in H1 2015, up 33.9% from
2,199 million euros for the corresponding period in 2014. Fixed personnel stood
at 57.1% of revenue, compared with 58.0% in H1 2014. Freelancers' fees totaled
197 million euros for the period (4.3% of revenue), after 139 million euros the
previous year (4.1% of revenue);
- Restructuring costs were slightly up at 39 million euros (32 million euros in
H1 2014);
- Other operating expenses (before Depreciation & Amortization) totaled 923
million euros, up from 666 million euros in H1 2014. This sharp increase was
due to the consolidation of Sapient. These expenses stand at 20.3% of total
revenue (vs. 19.8% in 2014). Commercial costs remain high at 204 million euros,
i.e. 4.5% of revenue (compared with 4.3% in 2014), given the high number of
accounts up for tender in the first half of 2015.
Depreciation and Amortization for the period was 86 million euros, compared with
58 million euros for the corresponding period in 2014.
The Operating margin rose to 589 million euros at June 30, 2015, up 35.4%, to be
compared with 435 million euros a year ago.
The percentage operating margin was 13.0% for the first half-year, as it was in
the first half of 2014. This margin, expressed as a percentage of revenue, was
boosted by the weakening of the euro against other currencies. At constant
exchange rates, the percentage operating margin was down 40 basis points on H1
2014 mainly due to acquisitions, to increased commercial and real estate costs,
partly offset by the reduction in personnel costs (as a percentage of revenue).
By region, the operating margin was 9.0% in Europe, 16.6% in North America,
10.7% in the Asia-Pacific region, 0.0% in Latin America, and 9.9% in the Middle
East & Africa.
Amortization of intangibles arising on acquisitions amounted to 43 million euros
in H1 2015, up from 24 million euros in H1 2014. This increase was mainly due
to intangibles relating to the Sapient acquisition. However, an impairment
charge of 24 million euros against BBH was recorded in the first half of 2014,
whereas no impairment was recognized in H1 2015.
Operating income, after 8 million euros in non-recurring income (as in H1
2014), amounted to 554 million euros in H1 2015, up from 395 million euros the
previous year.
Financial income (expense) was a net expense of 33 million euros in the first
half of 2015, after a net expense of 19 million euros in H1 2014. This increase
was mainly due to costs incurred in financing the Sapient acquisition, partly
offset by foreign exchange gains.
Income tax for the period was 159 million euros, i.e. an effective tax rate of
30.5%, compared with 113 million euros in H1 2014 when the effective tax rate
was 28.4%.
The Share of associates at June 30, 2015 was 3 million euros, compared with a
contribution of 2 million euros in 2014. Minority interests totaled 2 million
euros in the first half-year, after 5 million euros in H1 2014.
Overall, Net income attributable to the Groupe was 363 million euros for the
first half of 2015, up from 260 million euros for the corresponding period in
2014 (+39.6% year-on-year).
Headline Groupe Net Income (Net Income after elimination of impairment charges,
amortization of intangibles arising from acquisitions, main capital gains (or
losses) on disposals and revaluation of earn-out payments), was 383 million
euros for the first half of 2015, up from 297 million euros for the
corresponding period in 2014 (+29.0% year-on-year).
3.2 - Free cash-flow
The Groupe's free cash-flow before changes in Working Capital Requirements
amounted to 458 million euros in H1 2015, up from 294 million euros for the
corresponding period in 2014.
3.3 - Financial net debt
Net financial debt at June 30, 2015 amounted to 2,906 million euros, after a
cash-positive situation of 985 million euros at year-end 2014. This net
financial debt situation is due to variations in working capital requirements
which is customary at this time of year, and by the payment for the acquisition
of Sapient.
The Groupe's average net debt in H1 2015 was 1,881 million euros, compared with
an average cash-positive situation of 128 million euros at June 30, 2014.
3.4 - Shareholders' equity
Consolidated shareholders' equity attributable to the Groupe decreased from
6,086 million euros at December 31, 2014 to 6,021 million euros at June
30, 2015.
4 - GROUP'S CSR POLICY
2014 marked the end of the second three-year cycle in CSR reporting, a cycle
devoted to the consolidation and reliability of data, and to the scope of
reporting.
In compliance with article 225 of France's Grenelle 2 law and its 42
quantitative and qualitative indicators, the Groupe had its CSR endeavors
audited by an independent auditor (SGS) for the 3(rd) year in a row, whose audit
report has been included in the 2014 Registration Document: the 52 agencies
audited on-site represented 32% of the Groupe's personnel, and all consolidated
data were checked and audited. The CSR reporting process began in late 2014 and
continued throughout most of the first half-year 2015. The 2014 CSR Report is
available at:
http://www.publicisgroupe.com/documents/PubGpe_CSRReport_2014.pdf.
The Groupe's CSR strategy continues to revolve around the four main thrusts
(Social issues, Society and Community, Governance and Ethics, and the
Environment) that structure the entire responsibility approach at every level
within the Groupe.
Social and society / community issues are the areas in which the Groupe is most
active, and this is perfectly natural considering the importance of human
capital to the Groupe and its activity as provider of intellectual services. The
various plans of action deployed in terms of attractiveness, training, diversity
or indeed its numerous undertakings at community level (pro bono campaigns and
volunteer work) are all illustrations of the Groupe's commitment alongside its
employees.
With regard to the supply chain, in 2014 the Groupe used the EcoVadis platform
to review its suppliers. The pilot test run on a limited number of suppliers in
various countries has proved its merits and the test can now be rolled out to a
much wider sample.
The Groupe has continued to monitor its impact on the environment, always with a
view to "consuming less and better". Its sixth consecutive group-wide analysis
of its greenhouse gas emissions shows signs of qualitative progress despite the
relative stability of the figures.
5 - FIRST HALF'S HIGHLIGHTS
5.1 - Blue 449 launch
ZenithOptimedia is launching a new international media network in order to boost
the growth of its activity while developing hitherto unexplored communication
methods. This new network, named Blue 449, will be headquartered in London, in
the offices of the Walker Media Agency which has been rebranded to become the
bridgehead for ZenithOptimedia's new global network.
Blue 449 will have offices in 17 cities by the end of the year and will work
alongside other ZenithOptimedia brands such as Zenith, Optimedia, Performics and
Newcast. The new network will also act as a portal providing open-source access
to a vast array of businesses within the VivaKi and Publicis groups.
The Blue 449 launch follows the acquisition of Walker Media by Groupe Publicis
in 2014.
Blue 449 will be headed by Sébastien Danet (Global Chairman) and James Shoreland
(Global CEO). Sébastien Danet is also Global Managing Partner at ZenithOptimedia
and Chairman of VivaKi France. James Shoreland was Executive VP in charge of
Corporate Development at ZenithOptimedia USA, and has been promoted to become
the first CEO of Blue449.
5.2 - Acquisitions
- Sapient: acquisition of Sapient Corporation completed on February 6, 2015 for
total consideration of approximately $3.7 billion.
- Match Media is an independent media agency in Australia. Match will be
integrated into Blue 449, ZenithOptimedia Group's new global media network.
- Expicient Inc. is a leading global omni-channel services firm with significant
expertise in inventory and order management systems (OMS).
- Epic Communications is South Africa's leading independent integrated strategic
communications agency.
- Relaxnews is a press agency, member of Fédération Française des Agences de
Presse and of the International Press and Telecom Council, and has global
expertise in consulting, production and management of content for the digital
transformation of media and firms (exclusive negotiations ongoing).
- Monkees is the leading French agency specialized in digital marketing and
social media.
5.3 - Finance
- Share buyback
On March 17, 2015, before trading opened at the Paris Stock Exchange, Publicis
Groupe purchased 2,406,873 of its own shares in a block transaction from the
Badinter family for a total consideration of 176 million euros, i.e. 73.03 euros
per share. This transaction was part of a broader framework consisting of the
share buyback program authorized by the AGM of May 28, 2014 and the 2022 ORANE
bond early redemption project approved by the Supervisory Board and announced on
September 16, 2014.
The transaction was carried out at a discount of 2% to the weighted average
share price of the five previous days' trading, and at a discount of 4.5% to the
closing price on March 16, 2015 (76.47 euros).
The entire transaction was funded by Publicis Groupe's available liquidities.
- Share buyback contract: execution of share buyback program through an
investment services provider
Publicis Groupe has entered into a share buyback contract with an investment
services provider for the purposes of the Share Buyback Program authorized by
the Combined Annual General Meeting of its shareholders on May 28, 2014.
This contract was signed on March 27, 2015 and relates to a maximum of
3,935,000 shares at an average share price not exceeding the limit imposed by
the combined AGM of May 28, 2014. The actual price of these shares was be
calculated on the basis of the arithmetical average of the average prices
weighted by the volumes traded each day during the buyback period, and was
limited to that arithmetical average.
Under the terms of the contract, the buyback period extended from March
30, 2015 to July 31, 2015 and actually ended on June 9, 2015 by which date the
Groupe had acquired 3,935,000 shares at a volume-weighted average price (VWAP)
of 74.11 euros for a total cost of 291 million euros.
This buyback program falls within the framework of the project of the 2022 ORANE
bonds early redemption approved by the Supervisory Board and announced on
September 16, 2014.
By unanimous decision of the bondholders present and represented at the
bondholders' meeting of June 19, 2015, the amendment of the Issuance Agreement
authorizing early redemption of the all ORANE bonds at the Groupe's discretion
was approved. This amendment was also approved by Publicis Groupe SA's AGM on
May 27, 2015.
- Redemption of the 4.25% Eurobond
Publicis Groupe redeemed its 4.25% Eurobond at maturity in March 2015 for a
total of 253 million euros. The redemption was fully funded out of Publicis
Groupe's available liquidities. Given the 3.85% effective rate of interest on
this bond issue, the redemption will help reduce the average cost of the
Groupe's outstanding gross debt.
6 - RECENT EVENTS
- Early redemption of the 2022 ORANE bonds
On July 15, 2015, Publicis Groupe SA completed an early redemption of the 2022
ORANE bonds at an exchange rate of 8.12 shares per bond, thus distributing
12,684,356 existing shares to ORANE bondholders. On the redemption date, the
company also paid out 11 million euros in cash for coupons accrued (calculated
prorata temporis from September 1, 2014 up to July 15, 2015).
- New syndicated multi-currency credit facility put in place
On July 10, 2015, Publicis Groupe finalized the documentation for a new
syndicated, multicurrency credit facility for 2 billion euros over a five-year
period. This facility, which was signed on July 22 after review by the
Supervisory Board and final approval of the Management Board, is intended for
general financing purposes and replaces the previous syndicated facility of 1.2
billion euros entered into on July 13, 2011.
7 - OUTLOOK
When updating its forecasts on June 30, 2015, media observatory ZenithOptimedia
reduced its global advertising media expenditure forecast for 2015 to +4.2%,
down slightly from the +4.4% it forecast in March 2015 (and +4.9% for the
forecast dated December 2014). This 20 basis point reduction was attributed, on
the one hand, to slightly better trends in the main euro zone markets
(particularly France, Germany and Italy) which are consistent with the expected
economic improvements for 2015, and, on the other hand, to slight downturns
expected in the UK and Latin America (especially Brazil). Against this backdrop,
the agencies market should achieve revenue growth in the region of 2.5%.
As for Publicis Groupe, its organic growth should accelerate in the second half-
year after the 1.2% recorded in H1 2015. Publicis Groupe should therefore turn
in a solid performance over the full year, with double-digit increase expected
for:
- revenue
- operating margin
- headline EPS.
Free cash flow before change in working capital requirements should exceed one
billion euros.
The Groupe's high exposure to digital activities (50.9% of H1 2015 revenue) will
ensure its future growth and continued margin improvement between now and 2018.
* * *
.
Disclaimer
This document contains forward-looking statements. The use of the words
"aim(s)," "expect(s)," "feel(s)," "will," "may," "believe(s)," "anticipate(s)"
and similar expressions in this document are intended to identify those
statements as forward looking. Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ materially from
those projected. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this document. Other than as
required by applicable securities laws, Publicis Groupe undertakes no obligation
to publish revised forward-looking statements to reflect events or circumstances
after the date of this presentation or to reflect the occurrence of
unanticipated events. Publicis Groupe urges you to review and consider carefully
the various disclosures it has made concerning the factors that may affect its
business, including the disclosures made under the caption "Risk Factors" in the
2014 Registration Document filed with the French financial markets authority
(AMF).
About Publicis Groupe
Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is a global leader in
marketing, communication, and business transformation. In a world marked by
increased convergence and consumer empowerment, Publicis Groupe offers a full
range of services and skills: digital, technology & consulting with
Publicis.Sapient (SapientNitro, Sapient Global Markets, Sapient Government
Services, Razorfish Global, DigitasLBi, Rosetta) - the world's largest most
forward-thinking digitally centered platform focused exclusively on digital
transformation in an always-on world - as well as creative networks such as BBH,
Leo Burnett, Publicis Worldwide, Saatchi & Saatchi, public affairs, corporate
communications and events with MSLGROUP, ad tech solutions with VivaKi, media
strategy, planning and buying through Starcom MediaVest Group and
ZenithOptimedia, healthcare communications, with Publicis Healthcare
Communications Group (PHCG), and finally, brand asset production with
Prodigious. Present in 108 countries, the Groupe employs more than 76,000
professionals.
www.publicisgroupe.com | Twitter:(at)PublicisGroupe | Facebook:
www.facebook.com/publicisgroupe | LinkedIn : Publicis Groupe |
http://www.youtube.com/user/PublicisGroupe | Viva la Difference!
Publicis
Groupe
Peggy Corporate + 33 (0)1
Nahmany Communications 44 43 72 83 peggy.nahmany(at)publicisgroupe.com
Jean-Michel Investor + 33 (0)1 jean-
Bonamy Relations 44 43 77 88 michel.bonamy(at)publicisgroupe.com
Appendices
New Business: Main H1 2015 wins
Publicis Worldwide
Arla (Belgium), Mobistar (Belgium), Fédération des Médecins Omnipraticiens du
Québec (Canada), BASF (Brazil), Henkel (Brazil), Metro_ Santiago (Chile),
Sodimac (Chile), Universidad de Piura (Peru), Tencent (China), Heinz ABC
(Indonesia), Tourism NT (Australia), Civil Engineering Institute (Macedonia),
Roche Macedonia (Macedonia)
Saatchi & Saatchi
HomeAway (United Kingdom), Benecol - Pan European (Fallon London/United
Kingdom), Praktiker - digital (Poland), Drinkworks/Monteith's Cider (Australia),
Bank SA (Australia), Bank of Melbourne (Australia), Berlitz (Japon), Acer
(Singapore), ADT (South Africa), Cadillac (United Arab Emirates / Middle East &
North Africa), Toyota Corolla (Australia), Geely (China), Saunier Duval Brand
Group (Germany), Siemens (India), Tonno Nostromo (Italy), FWD Group
(Singapore/Thailand)
Leo Burnett
Fererro Chocolates (Italy), Allergan Medical Aesthetics (Singapore), OSN Cable &
Network Provider (United Arab Emirates), Marshall's (USA), Big W (Australia),
Brooks Running (USA), Bridgestone Olympics Activation (USA), Avios (UK), Fortis
Healthcare (India), GEMS World Academy (Singapore), Samsung Digital AOR
(Vietnam)
BBH/NEOGAMA
Tesco (Royaume-Uni), Magnum whatches (Brésil), Viva Channel (Brésil), Vale
(Brésil)
DigitasLBi
BP East of Rockies (San Francisco), Sony PlayStation (San Francisco)
MSLGROUP
Alcon (USA), 24 Hour Fitness (USA), Rover.com (USA), AIG (France), Conforama
(France), Elior (France), Michelin (France), Cathay Pacific (Netherlands),
Ranstad Holding (Netherlands), Nivea (Poland), ThyssenKrupp AG (Poland), ING
(Poland), Mahanagar Gas Limited (India), Alstom (India), Belkin International
(Singapore, Hong Kong, China), Alibaba.com (China), Orient Europharma (Taiwan),
Instagram (Italy), Reckitt Benckiser (Italy), Amazon (Poland), Federation of
German Industries (Germany), Rotterdam World Gateway Terminal (Netherlands),
Fiat (Brazil), Marriott (Hungary), Pratt and Whitney (Singapore), Credit
Agricole (France), Sanofi Pasteur (France), Orange (France), American Public
Health Association (USA)
Starcom MediaVest Group
TomTom (Global), Mars (USA), UNHCR (Italy), Poczta Polska (Poland), Viacom
(Poland), Liberty Insurance (Poland), VF Corp. - Wrangler, Lee/The North
Face/Timberland Pro/Nautica - (USA),; Keurig Green Mountain (USA), Telenor
(Sweden), Poczta Polska (Post Office) (Poland), TAMEK GIDA (Turkey), CSOB
(Czech), UNHCR (Italy), Seguros Constitución (Panama), Dutch Government - social
security counsel (Netherlands), Sun Generation Ltd (Poland), Viacom (Poland),
BANKIMIA (Spain), Liberty Insurance (Poland)
ZenithOptimedia
eis.de (Allemagne), Pixmania (France), Toyota (Slovakia, Czech Republic),
Mercedes-Benz (Romania),
BRD - Groupe Société Générale (Romania), Bella Food (Romania), AXN Europe
Limited (Romania), L'Oréal (Bolivia), Viva (Bolivia), ABInBev (Bolivia), Nestlé
(Bolivia), NH Hotels (Colombia), Istanbul Cerrahi Hospital (Turkey), The
Euroepan Commission (Armenia), Alkaloid (Armenia), Coty (global, 13 markets),
Harvey Nichols (UK, Kimberly Clark (USA, digital creative/production), Uniqlo
(UK), Uber (France), Corbis Corporation, IAAF, Pitch International, AMS (global
and regional research and analysis for global and regional sports federations,
bodies and marketing agencies), Molson Coors (Romania), College Football Hall of
Fame (USA, digital creative/production), GNV (Italy), 4a-event (Belarus)
Distinction / Creativity
Publicis Groupe networks and agencies won a record 257 Lions at the 62nd annual
Cannes Lions International Festival of Creativity- including 7 Grand Prix, 51
Gold, 64 Silver, 129 Bronze and 6 Special Awards among which 2 Glass Lions.
Notable awards for each network are listed below:
PUBLICIS WORLDWIDE:
- 38 awards (3 Gold, 9 Silver, 25 Bronze, 1 Product Design Lion) at Cannes Lions
- 4 awards (2 Silver, 2 Bronze) at Cannes Health
- 26 pencils (2 Yellow Pencil, 9 Graphite Pencil, 14 Wood Pencil) at the D&AD
Awards, including a coveted Black Pencil for the Intermarché "Inglorious Fruits
& Vegetables" integrated campaign by Marcel Paris.
- 26 awards (1 Grand Prize, 7 Gold, 8 Silver, 9 Bronze) at NY Festivals
including the coveted Best of Show Award for Marcel Paris campaign "Inglorious
Fruits & Vegetables" for Intermarché
- 15 Awards (2 Gold, 7 Silver, 5 Bronze) at The One Show Awards including this
year's Green Pencil Award for the best environmentally-conscious work of the
year with the Intermarché "Inglorious Fruits & Vegetables" integrated campaign
by Marcel Paris
- The Gunn Report named Publicis the 2nd most-awarded agency in Mexico, Shanghai
and Italy, and the 5th most-awarded in the UK and France
SAATCHI & SAATCHI:
- Cannes: 44 Lions, including 1 Grand Prix, 1 Innovation Lion, 5 Gold, 15 Silver
& 22 Bronze
- FIAP: 1 Gran Sol, 9 Gold, 11 Silver & 11 Bronze
- D&AD: 6 Pencils, including 1 Graphite, 1 Yellow, and 4 Wood Pencils
- El Sol: 3 Golds, 2 Silver & 6 Bronze
- Wave: 3 Grand Prix, 10 Gold, 8 Silver, 6 Bronzes
- Effies: 6 Awards including 2 Gold
- One Show: 6 Merits, 3 Gold, 2 Silver & 1 Bronze
LEO BURNETT:
- Leo Burnett Worldwide named "Network of the Year 2015" at the International
ANDY Awards, ADC Global Awards, International YoungGuns Awards, AdFest Awards,
Dubai Lynx Awards, Facebook Studio Awards and AWARD Awards.
- Leo Burnett named "Agency of the Year 2015" at the ADC Global Awards, Dubai
Lynx Awards, AWARD Awards, International YoungGun Awards, Creative Circle Awards
and Webby Awards.
- Major Awards in 1st half of 2015: D&AD Black Pencil, Facebook Blue Award, ADC
Global Black Cube, 2 Cannes Grand Prix, 2 Cannes Titanium Lions, 2 Cannes Glass
Lions, Best of Show International ANDY Awards, 2 Best of Show AICP Awards, 2
Grand Prix Dubai Lynx Awards, Grand Prix AdFest Awards, Grand Prix FAB Awards
and Grand Prix El Sol Awards.
SAPIENT:
- Cannes Lions Press Grand Prix and 2 Gold Press Lions, 1 Silver Film Lions, 1
Bronze Press Lion
- 6 New York Festivals awards
- 2 D&AD Wood and Graphite Pencil wins
- 1 Clio Image award
- Forrester Research named SapientNitro a Leader in both B2B and B2C Global
Commerce Services
- Forrester Research also named SapientNitro an Innovation Agency Leader
- SapientNitro Named a Leader for Third Consecutive Year in 2014 Gartner
Evaluation of Global Digital Marketing Agencies
BBH:
- BBH London : 1 Lions Gold and 1 Global Effies Gold
- BBH New York : 1 Lions Bronze " Creative Effectiveness" and 1 Effies Gold
- BBH Singapore : Campaign Asia Pacific - Top# 3 Most Admired Agency
in the region
DIGITAS LBI:
- Awarded 3 times by the Epica Awards, including 1 Silver and 2 Bronze
- Recognized 5 times by the Cristal Festival Awards, including 3 Bronze Sapphire
and 2 Bronze Emerald
- Ranked #1 at Ad Age BtoB Best Awards in the Outdoor category
- Won Silver at the National Addy Awards
- Won Gold and Silver at the North American Effie Awards
- Awarded 2 Merit and 2 Silver at the One Show Awards.
- Collected 5 Cannes Lions, including 1 Grand Prix, 2 Silver, and 2 Bronze
RAZORFISH GLOBAL:
- 2 Cannes Lions: Bronze, Outdoor and Bronze, Mobile
- 2 Webby awards in People's Voice and Native Advertising
- 1 Bronze D&AD Wooden Pencil
- 3 One Show Awards
- 1 Gold ADC award
- 2 FWA's, including: Mobile of the Day and Site of the Day
- 2 Shortys
- 4 MOBEX Awards including 2 Gold, 1 Silver and 1 Bronze
- 4 Markies: including 1 Silver, 3 Bronze
- 1 Gold FAB Award
- 5 Social Media Summit & Awards, including: Online Game of the Year, Social
Media Campaign of the Year and 3 awards for Best Use of Twitter
- Marketing Magazine's Gold for Creative Team of the Year (Razorfish Hong Kong)
- 1 Brand Republic Digital Award
- 3 Deutscher Digital Awards including 2 Bronze, 1 Silver
MSLGROUP:
- Cannes Lions: Grand Prix and Gold Lion in the PR category for Always
#LikeAGirl
- Effie Awards: 3 Gold and 1 Silver for Always #LikeAGirl
- PR Week Global Awards: Always #LikeAGirl was awarded 5 times including Gold
Campaign of the Year and Global Citizenship winner
- EMEA Sabres: named Eastern European consultancy of the year
PUBLICIS HEALTHCARE COMMUNICATIONS GROUP:
- Publicis Healthcare was ranked the largest healthcare agency network by
Advertising Age.
- Silver Award in the Best Outsourced Provider category, Publicis Touchpoint
Solutions, at the Graphis Advertising Annual 2015
- 6 Platinum, 4 Gold awards for Saatchi & Saatchi Wellness at the MARCOM Awards
- 1 Silver & 1 Gold award at the PM Society Awards
PRODIGIOUS:
- 14 Cannes Lions (with Leo Burnett, Marcel and Publicis 133): 4 Gold, 2 Silver,
8 Bronze
- 5 D&AD Awards (with Marcel): 2 Gold, 1 Silver, 1 Bronze
STARCOM MEDIAVEST GROUP:
- SMG is the most awarded Media Network at the Cannes Lions festival with 164
nominations, including 1 Grand Prix, 21 Gold, 14 Silver and 29 Bronze
- At FOM Global, SMG USA was named Agency of the Year and the global network
brought home 5 Gold, 5 Silver, 4 Bronze and 18 finalists
- At Effie North America, SMG Chicago was the highest ranked media agency and
SMG USA was the highest ranked media network and second ranked network of any
kind. The total medal count includes nine gold, 10 silver, four bronze and 15
finalists
- SMG UAE was named Media Agency of the Year at Dubai Lynx
- SMG UAE was named Agency of the Year at the MENA Cristal awards and SMG as a
whole won 9 awards and 50 additional nominations
ZENITHOPTIMEDIA:
- Media agency credits for 16 Cannes Media Lions - 1 Gold, 7 Silver, 11 Bronze
- Gold at Festival of Media Asia
- 8 major prizes at US Addy Awards
- Offremedia's Media Agency of the Year, 2nd year running (in 2nd year of
competition history)
- ZenithOptimedia's performance marketing division Performics named a Top 30
Global Digital Agency Network by RECMA
2015 Press Releases
08-01-2015 Publicis Groupe Extends Tender Offer to Acquire Sapient
15-01-2015 Publicis Groupe Names Anthony Gazagne President of
PublicisLive
23-01-2015 Publicis Groupe Extends Tender Offer to Acquire Sapient
27-01-2015 Publicis Groupe Acquires French Digital Marketing Agency
Monkees to be aligned with Publicis Activ
29-01-2015 Jean-Michel Bonamy Joins Publicis Groupe as Vice-President
Investor Relations & Strategic Financial Planning
04-02-2015 Publicis Groupe and Sapient Receive all Regulatory Approvals
for Proposed Acquisition
06-02-2015 Publicis Groupe Completes Acquisition of Sapient
12-02-2015 2014 annual results
16-02-2015 Publicis Groupe and Relaxnews Announce the Start of Exclusive
Negotiations in View of the Acquisition of Relaxnews, press agency specialized
in lifestyle content creation, at a valuation of ?9.58 per share
26-02-2015 Publicis Groupe Acquires Integrated Strategic Communications
Agency, Epic Communications. Agency to Join the MSLGROUP Network in South Africa
12-03-2015 Publicis Groupe Strengthens Publicis.Sapient's Leadership in
Omni-Channel and Connected Commerce with Acquisition of Expicient Inc
17-03-2015 Share Buyback
25-03-2015 Update On Publicis Groupe Always On Platform
30-03-2015 Share Buyback Contract
21-04-2015 Q1 2015 revenue
13-05-2015 Share Buyback Contract
28-05-2015 2015 Combined Shareholders' Meeting
01-06-2015 Acquisition of Relaxnews at a Price of 9.58 Euro per Share
23-06-2015 Notice of Early redemption of ORANE
29-06-2015 Arthur Sadoun, President of Publicis Worldwide, will take on
the direct supervision of MSLGROUP. Olivier Fleurot will join the Groupe's
holding as Senior Vice President
Definitions
Net financial debt (or net debt): equals the long and short term financial debt
plus associated derivatives fair value, less cash and cash equivalent
Average net debt: average of average monthly net debt.
Operating margin: The operating margin is equal to the revenue after deduction
of personnel expenses, other operating expenses (excluding non-current income
and expenses), depreciation and amortization (excluding intangible arising from
acquisitions).
Operating margin rate: operating margin/revenue.
Organic growth calculation
+---------------------------------+-------+ +----------------------------------+
| | | | Impact of exchange rates by |
| (million euros) |H1 2015| | currency |
| | | | (EUR million) |
| | | | H1 |
| | | +---------+------------------------+
|2014 revenue | 3,358| |GBP ((2))| 35|
| | | +---------+------------------------+
|Currency impact ((2)) | 478| |USD ((2))| 363|
| | | +---------+------------------------+
|2014 revenue at 2015 exchange | 3,836| |Others | 80|
|rates (a) | | | | |
+---------------------------------+-------+ +---------+------------------------+
|2015 revenue before impact of | 3,881| |Total | 478|
|acquisitions ((1)) (b) | | | | |
| | | +---------+------------------------+
|Revenue from acquisitions ((1)) | 661|
| | |
|2015 revenue | 4,542|
| | |
|Organic growth (b/a) | +1.2%|
| | |
+---------------------------------+-------+
(1) Acquisitions (L&K India, Hawkeye, Lead 2 Action, Salter Baxter, Crown,
Proximedia, Ambito 5, Liquorice, Nurun, Turner Duckworth, Tangerine, Run, ZME,
Machine, BrandsRock, 3Share, Relevant 24, Monkees, ZO Puerto Rico, AKM3, Vivid,
Epic, Spindrift, Star Reacher, Sapient, B2B, Expicient, Practice iLeo Romania,
Relaxnews, C), net of disposals.
(2) EUR = USD 1.115 in H1 2015 vs. USD 1.370 in H12014
EUR = GBP 0.732 in H1 2015 vs. GBP 0.821 in H1 2014
Consolidated income statement
(in millions of June June 30th 2014 December
euros) 30th 2015 (6 months) 31st 2014
(6 months) (12 months)
Revenue 4,542 3,358 7,255
Personnel expenses (2,944) (2,199) (4,506)
Other operating expenses (923) (666) (1,442)
Operating margin before
depreciation and 675 493 1,307
amortization
Depreciation and
amortization expense (86) (58) (125)
(excluding intangibles
arising from acquisitions)
Operating margin 589 435 1,182
Amortization of intangibles (43) (24) (51)
arising from acquisitions
Impairment loss - (24) (72)
Non-current income and 8 8 10
expenses
Operating income 554 395 1,069
Financial expenses (56) (22) (48)
Financial income 16 10 25
Cost of net financial debt (40) (12) (23)
Other financial income and 7 (7) (5)
expenses
Pre-tax income of 521 376 1,041
consolidated companies
Income taxes (159) (113) (311)
Net income of consolidated 362 263 730
companies
Share of profit of 3 2 4
associates
Net income 365 265 734
Of which:
- Net income attributable 2 5 14
to non-controlling interests
- Net income attributable
to equity holders of the 363 260 720
parent company
-------------------------------------------------------------------------------
Per share data (in euros) - Net income
attributable
to equity holders of the parent company
Number of shares 224 245 793 222 276 420 223 868 360
Earnings per share 1,62 1,17 3,22
Number of diluted shares 228 586 966 227 437 919 227 772 479
Diluted earnings per share 1,59 1,14 3,16
-------------------------------------------------------------------------------
Consolidated statement of comprehensive income
(in millions of euros) June 30th 2015 June 30th 2014 December 31st 2014
(6 months) (6 months) (12 months)
--------------------------------------------------------------------------------
Net income for the period (a) 365 265 734
Comprehensive income that
will not be reclassified to
profit or loss
- Actuarial gains (and
losses) on defined benefit 26 (36) (43)
plans
- Deferred taxes on
comprehensive income that (7) (19) (17)
will not be reclassified to
profit or loss
Comprehensive income that may
be reclassified to profit or
loss
- Revaluation of available-
for-sale investments and 10 (2) 5
hedging instruments
- Consolidation translation 218 26 338
adjustments
- Deferred taxes on
comprehensive income that may - 1 (1)
be reclassified to profit or
loss
Total other comprehensive 247 (30) 282
income (b)
Total comprehensive income 612 235 1,016
for the period (a) + (b)
Of which:
- Total comprehensive income
attributable to non- 4 3 11
controlling interests
- Total comprehensive income
attributable to equity 608 232 1,005
holders of the parent company
--------------------------------------------------------------------------------
Consolidated balance sheet
(in millions of euros) June 30th 2015 December 31st 2014
-------------------------------------------------------------------------
Assets
Goodwill, net 9,999 7,006
Intangible assets, net 1,560 955
Property, plant and equipment, net 639 552
Deferred tax assets 196 133
Investments in associates 112 36
Other financial assets 166 195
Non-current assets 12,672 8,877
Inventories and work in progress 432 320
Trade receivables 8,044 7,676
Other current receivables and assets 623 595
Cash and cash equivalents 1,090 3,158
Current assets 10,189 11,749
Total assets 22,861 20,626
------------------------------------------------------------------------------
Equity and liabilities
Share capital 89 88
Additional paid-in capital and retained earnings, Group share 5,932 5,998
Equity attributable to holders of the parent company 6,021 6,086
Non controlling interests 29 29
Total equity 6,050 6,115
Long-term borrowings 3,044 1,627
Deferred tax liabilities 550 360
Long-term provisions 520 442
Non-current liabilities 4,114 2,429
Trade payables 9,478 9,640
Short-term borrowings 816 533
Income taxes payable 113 72
Short-term provisions 124 125
Other creditors and current liabilities 2,166 1,712
Current liabilities 12,697 12,082
Total equity and liabilities 22,861 20,626
CONSOLIDATED CASH FLOW STATEMENT
June 30th 2015 June 30th 2014 December
(in millions of euros) (6 months) (6 months) 31st 2014
(12 months)
-------------------------------------------------------------------------------
Cash flow from operating
activities
Net income 365 265 734
Neutralization of non-cash
income and expenses:
Income taxes 159 113 311
Cost of net financial debt 33 12 23
Capital (gains) losses on (11) (8) (9)
disposals (before tax)
Depreciation, amortization and
impairment on property, 129 106 248
equipment and intangible assets
Non-cash expenses on stock 16 21 34
options and similar items
Other non-cash income and 6 4 (4)
expenses
Share of profit of associates (3) (2) (4)
Dividends received from 1 1 1
associates
Taxes paid (136) (165) (321)
Interest paid (36) (26) (70)
Interest received 18 10 24
Change in working capital (814) (779) 66
requirements ((1))
Net cash provided by (used in) (273) (448) 1,033
operating activities (I)
Cash flows from investing
activities
Purchases of property, (84) (40) (135)
equipment and intangible assets
Proceeds from sale of property, 1 3 4
equipment and intangible assets
Purchases of investments and (4) - (52)
other financial assets, net
Acquisitions of subsidiaries (3,070) (96) (403)
Disposals of subsidiaries 2 - 1
Net cash flows provided by
(used in) investing activities (3,155) (133) (585)
(II)
Cash flows from financing
activities
Dividends paid to holders of - - (111)
the parent company
Dividends paid to non- (7) (8) (15)
controlling interests
Cash received on new borrowings 1,866 9 1,349
Reimbursement of borrowings (259) (8) (23)
Net purchases of non- (27) (4) (76)
controlling interests
Net (purchases)/sales of 45
treasury shares and equity (450) 39
warrants
Net cash flows provided by
(used in) financing activities 1,123 28 1,169
(III)
Impact of exchange rate 156 (16) 133
fluctuations (IV)
Net change in consolidated cash (2,149) (568) 1,750
flows (I + II + III + IV)
-------------------------------------------------------------------------------
Cash and cash equivalents on 3,158 1,442 1,442
January, 1
Bank overdrafts on January, 1 (26) (60) (60)
Net cash and cash equivalents 3,132 1,382 1,382
at beginning of period (V)
Cash and cash equivalents at 1,090 836 3,158
closing date
Bank overdrafts at closing date (107) (22) (26)
Net cash and cash equivalents 983 814 3,132
at closing date (VI)
Net change in cash and cash (2,149) (568) 1,750
equivalents (VI - V)
(1) Breakdown of
change in working
capital
requirements:
Change in inventory (90) 27 10
and work in progress
Change in accounts
receivable and other 398 264 (65)
receivables
Change in accounts
payable, other (1,122) (1,070) 121
payables and
provisions
Change in working (814) (779) 66
capital requirements
Earnings per share
Earnings per share and diluted earnings per share
(in millions of euros, except for June 30(th), 2015 June 30(th), 2014
share data)
-------------------------------------------------------------------------------
Net income used for the calculation of
earnings per share
Group net income a 363 260
Impact of dilutive instruments:
- Savings in financial expenses
related to the conversion of debt 0 0
instruments, net of tax
------------------------------------
Group net income - diluted b 363 260
Number of shares used to calculate
earnings per share
Number of shares as of January 1st 221,203,857 216,023,378
Shares issued during the period 396,323 333,060
Treasury shares to be deducted
(average for the year) (10,038,874) (8,350,066)
Shares to be issued to redeem the
Orane 12,684,487 14,270,048
------------------------------------
Average number of shares used for the
calculation c 224,245,793 222,276,420
Impact of dilutive instruments:( (1))
- Free shares and dilutive stock
options ( (1)) 3,358,856 3,753,957
- Warrants ( (1)) 982,317 1,368,321
- Shares resulting from the conversion
of the convertible bonds 0
Unternehmensinformation / Kurzprofil:
Datum: 22.07.2015 - 23:49 Uhr
Sprache: Deutsch
News-ID 408606
Anzahl Zeichen: 65605
contact information:
Town:
Paris
Kategorie:
Business News
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