Publicis Groupe SA · EURONEXT:PUB
Publicis Groupe SA — Q3 2023 Earnings Presentation
29 slides from Publicis Groupe SA's earnings presentation, Oct 12, 2023
Slide 1: Q3 2023 Results
Q3 2023 RESULTS 12 October 2023 ig PuBLICIS
Slide 2: Q3 2023 Highlights
Q3 2023 HIGHLIGHTS Q3 2023 REVENUE OUTLOOK Q&A PuBLICIS
Slide 3: Forward-looking statements disclaimer
Certain information contained in this document, other than historical information, may constitute forward-looking statements or unaudited financial forecasts. These forward-looking statements and forecasts are subject to risks and uncertainties that could cause actual results to differ materially fr
Slide 4: Key Highlights from Q3'23
3 KEY HIGHLIGHTS FROM Q3’23 1 2 3 Overdelivering on organic growth in Q3 +5.3% a3 vs. 2022 Outperforming the industry on growth over the last 4 years +22% a3 vs. 2019 Upgrading FY’23 guidance on all KPIs +5.5% to 6% organic growth 18% Operating margin Close to €1.7bn FCF
Slide 5: Overdelivering in Q3'23 with +5.3% organic growth
OVERDELIVERING IN Q3’23 WITH +5.3% ORGANIC GROWTH Ahead of expectations after 2 years at double-digit despite challenging environment Go-to-market in Media 3€ A balanced revenue mix 1/3 of revenue 1/3 of revenue 1/3 of revenue Media Data & Tech Creative . . ee Kncilan ublicis i ial High-single digit
Slide 6: Strength in differentiated model visible across all regions
STRENGTH IN DIFFERENTIATED MODEL VISIBLE ACROSS ALL REGIONS U.S. Q3 +3.2% Organic growth after +11.1% Q3’22 a Very solid After 2 years. at double-digit Europe Q3 +10.7% Organic growth after +11.1% Q3’22 <a Ahead of expectations U.K. at_+10.0% after +23% Q3’22 Asia-Pacific Q3 +3.8% Organic growth aft
Slide 7: Continuing to outperform the industry
CONTINUING TO OUTPERFORM THE INDUSTRY ON GROWTH SINCE PANDEMIC Accelerating momentum Strong 9M’23 net revenue growth in Q3 organic growth vs. 2019 since 2019 led by Data & Tech 18% 20% 22% | c.30% Q3’23 organic ° + 2 O % organic Europe +23% L U.S. +24% | Groupe Epsilon organic Q3’23 organic | +38% r
Slide 8: New upgrade in 2023 outlook
NEW UPGRADE IN 2023 OUTLOOK Strength of the model Better-than-expected Q3 organic growth a Upgrade FY 2023 guidance on all KPlIs in the face of ongoing macroeconomic uncertainties Organic growth Operating margin rate Free cash flow> | +5.5% to 6% 18% close to €1.7bn : vs. circa +5% previously vs. cl
Slide 9: Q3 2023 Revenue
Q3 2023 HIGHLIGHTS Q3 2023 REVENUE OUTLOOK Q&A PuBLICIS
Slide 10: Net Revenue
NET REVENUE (EUR million) Ql Q2 Q3 9M 2023 netrevenue 3,079 3,239 3,241 9,559 2022 net revenue 2,800 3,073 3,237 9,110 Reported growth +10.0% +5.4% +0.1% +4.9% O/w FX impact 42.3% -2.6% -6.2% -2.4% Organic growth +7.1% +7.1% #5.35% +6.5% 10
Slide 11: Q3 2023 Net Revenue by Geography
Q3 2023 NET REVENUE BY GEOGRAPHY Organic Organic 2023 growth growth (EUR million) Q3 2023. @Q32022 vs.2022 vs.2022 _ vs. 2019 North America 1,999 2,076 +235% Europe 769 694 +23% - . acta ne ee... ; ae ——_— S03 — i “oo a... — a — Son _ Middle East Africa 95 90 +5.6% +18.2% +32% Latin America 90 74 +2
Slide 12: Q3 2023 Performance - North America
Q3 2023 PERFORMANCE - NORTH AMERICA 2023 Organic (EUR million) Q3 2023 Q3 2022 vs. 2022 growth North America 1,999 2,076 -3.7% +3.0% US * 60% of Groupe net revenue * Organic growth: +3.2% * Media: Mid-single digit growth, fuelled by New Business gains * Creative: Slightly negative due to localized c
Slide 13: Q3 2023 Performance - Europe
Q3 2023 PERFORMANCE - EUROPE 2023 Organic (EUR million) Q3 2023 Q3 2022 vs. 2022 growth Europe 769 694 +10.8% +10.7% UK France Germany Central & Eastern Europe 10% of Groupe net revenue + 5% of Groupe net revenue + 3% of Groupe net revenue + 2% of Groupe net revenue Organic growth: +10.0% * Organic
Slide 14: Q3 2023 Performance - Rest of World
Q3 2023 PERFORMANCE - REST OF WORLD 2023 Organic (EUR million) Q3 2023 Q3 2022 vs. 2022 growth Asia Pacific 288 303 -5.0% +3.8% Middle East Africa Latin America Asia Pacific 9% of Groupe net revenue Organic growth: +3.8% Slowdown in China this quarter at -2.5% with localized cuts in marketing, Media
Slide 15: 9M 2023 Performance by Industry
9M 2023 PERFORMANCE BY INDUSTRY Net revenue split Net revenue growth per client industry“) Leisure Fnersy & travel) & manuf. Public sector 41.3% 417% & Other +19% Automotive 9; 15% +5% Retail +9% Non-food Financial consumer +0% products +2% Healthcare ™T +13% 3,478 main clients representing 92% of G
Slide 16: Net Financial Debt
NET FINANCIAL DEBT Sep 30, June Sep 30, (EUR million) 2023 30, 2023 2022 Net Financial Debt, LTM average 451 498 870 Net Financial Debt, at end of period 714 226 919 (Average net financial debt + Lx Lx 13x Average Lease liability) / EBITDA 16
Slide 17: Outlook
Q3 2023 HIGHLIGHTS Q3 2023 REVENUE OUTLOOK Q&A PuBLICIS
Slide 18: Outlook
OUTLOOK Ahead of expectations in Q3 In an increasingly challenging global context A bigger and stronger company More resilient to business cycles Upgrade FY 2023 guidance On all KPIs 18
Slide 19: Increased demand •
Real time Global Country Shared Creative Media Tech Data delivery Marcel model services centers • Market share • Project delays gains in the short term • Increased demand • Confidence in for first-party data structural demand 2.5x more than closest peer ahead > 500 bps > 500 bps outperformance outpe
Slide 20: Upgrade in 2023 outlook on all KPIs
UPGRADE IN 2023 OUTLOOK ON ALL KPIs FY organic growth +5.5% to 6% from circa +5% previously +5.5% FY’23 Close to 6% FY’23 +3% Q4 +5% Q4 * Continued macroeconomic tensions * Fewer cuts in classic advertising impacting client spend ° Faster new business ramp-up than ° Further delays to DBT projects ex
Slide 21: Conclusion
CONCLUSION Overdelivering on organic growth again in Q3 Outperforming the industry on all KPIs for the last four years Upgrading FY’23 guidance despite macroeconomic challenges a A truly differentiated model 24
Slide 22: Q&A
Q3 2023 HIGHLIGHTS Q3 2023 REVENUE OUTLOOK Q&A PuBLICIS
Slide 23: Appendix
APPENDIX PuBLICIS
Slide 24: Net Revenue & Organic Growth Calculation
NET REVENUE & ORGANIC GROWTH CALCULATION (EUR million) Qi Q2 Q3 2023 Currency impact 2022 net revenue (EUR million) Ql Q2 Q3 Currency impact 61 (73) GBP 13) (7) (ap) 2022 net revenue at 2023 exchange rate (a) ] se USD 78 (35) (138) 2023 net revenue before impact of acquisitions (b) Other (4) G3) (50
Slide 25: Gross Debt as of September 30, 2023
GROSS DEBT AS OF SEPTEMBER 30, 2023 Breakdown by maturity Oct. 2023- Oct.2024- Oct.2025- Oct.2026- Oct. 2027 (EUR million) Total Sep. 2024 Sep. 2025 Sep. 2026 Sep. 2027 Onwards Eurobond 2023 500 500 - - - - Eurobond 2024 601 - 601 - - - Eurobond 2025 @) 804 - 804 - - - Euro! Mey Eurobond 2031“ @ 833
Slide 26: Net Debt as of September 30, 2023
NET DEBT AS OF SEPTEMBER 30, Breakdown by currency (EUR million) Total EUR USD GBP Others Eurobond 2023 Eurobond 2024 Eurobond 2025 0) © Eurobond 2028 “) @) Eu 31 (D2) Ea ut o 16 oll Cash & marketable securities (3,174) (1 762) (13) (1085) Net debt (cash) 714 971 - (1054) (1) Including fair values o
Slide 27: Liquidity as of September 30, 2023
LIQUIDITY AS OF SEPTEMBER 30, 2023 September 30, September 30, 2023 2022 (EUR million) Total Drawn Available Available 5-year syndicated facility (Club Deal) 2000 - 2000 2000 Total Committed Facilities 2 000 - 2 000 2 000 Cash and Marketable Securities 3174 3.005 Total liquidity 5174 5005 (1) 2,000m
Slide 28: Definitions
DEFINITIONS Net revenue: Revenue less pass-through costs which comprise amount paid to external suppliers engaged to perform a project and charged directly to clients. Those costs are mainly production & media costs and out of pocket expenses. Organic growth: Change in net revenue excluding the impa
Slide 29: Contact
CONTACT Press Amy Hadfield, Group Communications Director | Tel. + 33 144 43 70 75 | Email. [email protected] Investor Relations Alessandra Girolami, Vice-President Investor Relations & Strategic Financial Planning | Email. [email protected] Loréne Fleury, Investor