Publicis Groupe SA · EURONEXT:PUB
Publicis Groupe SA — Q1 2015 Earnings Presentation
29 slides from Publicis Groupe SA's earnings presentation, Apr 21, 2015
Slide 1: Q1 2015 Revenue
Q1 2015 REVENUE April 21, 2015
Slide 2: Disclaimer
DISCLAIMER This presentation 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 presentation are intended to identify those statements as forward looking. Forward-looking statements
Slide 3: Q1 Revenue
Q1 REVENUE (EUR million) REVENUE 2,103 Q1 2014 1,597 Reported growth +31.7% Growth excluding forex +16.1% Organic growth +0.9% 3
Slide 4: Q1 2015 Revenue: Highlights
Q1 2015 REVENUE: HIGHLIGHTS • Significant positive impact of currencies • Organic growth above our expectations • Digital over 50% of revenue • Headwinds until Q2 2015: Razorfish (BlackBerry...), Microsoft media • Strong growth in Healthcare 4
Slide 5: Revenue Q1 2015 by Geography
REVENUE Q1 2015 BY GEOGRAPHY Var. Q1 2015 (EUR million) Q1 2015 Q1 2014 2015 vs 2014 organic growth Europe 1 575 474 +21.3% +1.7% North America 1,152 795 +44.9% +0.8% BRIC + MISSAT 2 215 190 +13.2% -2.6% Rest of the world 161 138 +16.7% +4.0% Total 2,103 1,597 +31.7% +0.9% Organic growth in North Am
Slide 6: Significant Impact of Currencies in Q1 2015
SIGNIFICANT IMPACT OF CURRENCIES IN Q1 2015 • North America represents 55% of revenue BRIC + MISSAT (2) 10% (EUR million) Q1 RoW 8% 2014 Revenue 1,597 North America Europe (1) 27% 55% Currency impact +215 2014 Revenue at 2015 exchange rate 1,812 2015 Revenue before impact of acquisitions 1,829 Reven
Slide 7: Growth by Country
GROWTH BY COUNTRY Organic Growth Q1 2015 Australia, Egypt, Hungary, India, Korea, Philippines, >5% Poland, Saudi Arabia, Singapore, Venezuela France, Germany, Israel, Italy, Spain, Sweden, From 0 to 5% Taiwan, UAE, USA Brazil, Colombia, Mexico, Russia, South Africa, < 0% Turkey, UK 7
Slide 8: Digital
DIGITAL Q1 2015 Q1 2014 % of Group revenue 50.2% 40.9% EUR million € 1,056 M € 653 M Organic Growth +4.7% Organic growth excl. Razorfish issues and Microsoft media +6.4% 8
Slide 9: Organic Growth by Region and Activity
ORGANIC GROWTH BY REGION AND ACTIVITY NORTH BRIC + REST OF EUROPE (1) TOTAL AMERICA MISSAT (2) THE WORLD DIGITAL +7.7% +1.3% +24.8% +20.5% +4.7% ANALOG -1.5% +0.3% -8.4% -0.9% -1.8% Total +1.7% +0.8% -2.6% +4.0% +0.9% Digital organic growth in North America excl. Razorfish issues and Microsoft media
Slide 10: Net Cash / (Debt)
NET CASH / (DEBT) (in EUR million) Average Net Cash / (Debt) Net Cash / (Debt), as of March 31 300 Cash Cash (29) (380) Cash (847) (776) (2,966) Q1 2013 Q1 2014 Q1 2015 10
Slide 11: Sapient
SAPIENT
Slide 12: Sapient Integration: Update
SAPIENT INTEGRATION: UPDATE • February 6, 2015: Closing • Sapient management integration within the Publicis Groupe organization • Supervisory Board: Jerry Greenberg (1) • Directoire+: Alan Herrick • P12: Alan Herrick, Alan Wexler, Chip Register • Publicis.Sapient platform: “90-day Plan” to design s
Slide 13: Publicis Groupe, the Only Player Positioned on the Whole Digital Value Chain
PUBLICIS GROUPE, THE ONLY PLAYER POSITIONNED ON THE WHOLE DIGITAL VALUE CHAIN CONSULTING BRANDING MARKETING COMMERCE TECHNOLOGY COMMUNICATION CRM Alchemy: (IQ+EQ+TQ+BQ)CQ 13
Slide 14: Conclusion
CONCLUSION
Slide 15: 2015 Outlook
2015 OUTLOOK Q4 2014 2015 • Revised ZenithOptimedia 2015 media advertising growth forecast of +4.4% vs. +4.9% (1) • Confirmed moderate improvement in Q2 organic growth vs. Q1 • Agencies’market expected to grow 3.0% to 3.5% in 2015 • Confirmed improvement in H2 organic growth vs. H1 2015 organic grow
Slide 16: 2015 Priorities
2015 PRIORITIES 1. Organic growth 2. Sapient integration Construction of the Publicis.Sapient platform 90-day Plan 3. Balance sheet simplification Reimbursement of the 2015 Eurobond (March 2015) for €253 million Early redemption of ORANE (1), through treasury shares (50% ) and share buyback
Slide 17: Q&A
Q&A
Slide 18: Appendices
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Slide 19: Revenue in USD Million
REVENUE IN USD MILLION Q1 2015 Q1 2014 Revenue 2,366 2,187 +8.2% 19
Slide 20: Q1 2015: Revenue by Activity
Q1 2015 : REVENUE BY ACTIVITY Analog & Digital Media = 23% 12% Media 15% in 2014 SAMS 14% 15% in 2014 50% 41% in 2014 Digital 24% 29% in 2014 Advertising 20
Slide 21: Q1 2015: Revenue by Sector
Q1 2015: REVENUE BY SECTOR (1) Q1 2015 Q1 2014 Non Food consumer products 6% Food and beverage 5% 16% 3% 4% 18% 7% TMT 6% Healthcare 11% 13% 13% Automotive 15% Financial 14% 12% Leisure/Energy/Luxury 14% 14% 15% Retail 14% Other (1) Based on 2,512 customers representing 84% of Group revenue 21
Slide 22: Breakdown of Q1 2015 Revenue by Sector
BREAKDOWN OF Q1 2015 REVENUE BY SECTOR (1) • Digital vs. Analog 41% 41% 56% 55% 54% 60% 71% 71% Analog Digital 59% 59% 44% 45% 46% 40% 29% 29% Non Food consumer Food and beverage TMT Automotive Retail Healthcare Financial Leisure/Energy/Luxury products (1) Based on 2,512 customers representing 84% o
Slide 23: Revenue & Organic Growth
REVENUE & ORGANIC GROWTH • Calculation – Q1 2015 Impact of exchange rates (EUR million) Q1 by currency (EUR million) (2) 2014 Revenue 1,597 Q1 Currency impact 215 GBP 16 2014 Revenue at 2015 exchange rate (a) 1,812 USD 167 2015 Revenue before impact of acquisitions (b) (1) 1,829 Others 32 Revenue fr
Slide 24: Revenue by Geography - Q1 2015 - Old Split
REVENUE BY GEOGRAPHY - Q1 2015 - Old split Q1 Q1 Q1 organic Q1 2015 vs. (EUR million) 2015 2014 growth Q1 2014 Europe 588 494 +1.2% +19.0% North America 1,152 795 +0.8% +44.9% Asia Pacific 221 177 +2.8% +24.9% Latin America 90 92 -5.3% -2.2% Middle East Africa 52 39 +4.4% +33.3% Total 2,103 1,597 +0
Slide 25: Gross Debt, as of March 31, 2015
GROSS DEBT, AS OF MARCH 31, 2015 • Breakdown by MATURITY Total Apr. 2015 - Apr. 2016 - Apr. 2017 – Apr. 2018 – Apr. 2019 (EUR million) Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 onwards Eurobond 2021 (1) 807 807 Eurobond 2024 (1) 668 668 Oranes 29 29 Medium term loan (USD) 1,487 496 496 495 Earn out /
Slide 26: Liquidity, as of March 31, 2015
LIQUIDITY, AS OF MARCH 31, 2015 Available (EUR million) Total Drawn Available as of Mar. 31, 2014 Committed Facilities Term loan (1) 1,487 1,487 0 0 364-day revolving credit facilities 205 - 205 205 5-year revolving credit facility (2) 520 - 520 504 5-year syndicated facility (Club Deal) (3) 1,200 -
Slide 27: Net Debt as of March 31, 2015 by Currency
NET DEBT AS OF MARCH 31, 2015 • Breakdown by CURRENCY (EUR million) Total EURO USD GBP Others Eurobond 2021 (1) (2) 807 807 Eurobond 2024 (1) (2) 668 668 Oranes 29 29 Medium term loan (USD) 1,487 1,487 Earn out / Buy out 479 70 226 26 157 Other (1) 423 (6) 347 (4) 86 Cash & marketable securities (3)
Slide 28: Net Debt as of March 31, 2015 by Rate
NET DEBT AS OF MARCH 31, 2015 • Breakdown by RATE Earn-out / Fixed Floating (EUR million) Total Buy-out rate rate Eurobond 2021 (1) (2) 807 807 Eurobond 2024 (1) (3) 668 668 Oranes 29 29 Medium term loan (USD) 1,487 1,487 Other debt (1) 423 116 307 Total gross debt excluding 3,414 1,620 1,794 earn o
Slide 29: ZenithOptimedia's Advertising Forecast
ZENITHOPTIMEDIA’S ADVERTISING FORECAST 2015 major media advertising forecast (1) at current prices US +3.7% Japan +2.5% Western Europe +3.1% Including: United Kingdom +8,4% Germany +1.7% France -0.6% Italy -0.1% Spain +6.7% Central & Eastern Europe -5.2% China +9.1% Brazil +5.1% WORLDWIDE (Media) +4