JEAN-MICHEL ETIENNE
EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, PUBLICIS GROUPE
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 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 presentation. 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
2012 Registration Document filed with the French financial markets authority (AMF).
PRESENTATION PURPOSE
 Demonstrate how the Group will outperform market and peer
growth:
− 75% of its total revenue in 2018, coming from digital and Fast Growing
Markets
 Demonstrate that the Group has the best leverage in the
Industry due to this new profile and differentiated business
model:
− +200 bp to +400 bp of margin improvement in 2018 vs 2012
ST
:1
STRATEGIC TURN
2006 - 2012
STEP
STRATEGIC TURN 1ST STEP: 2006 - 2012
 Margin of Acquisitions
 Change in profile
2006
Fast
Digital Growing
Markets
7%
21%
16.5%
11%
2012
2006
Digital
33%
3%
Fast
Growing
Markets
25%
2012
2006 – 2012: the margin of acquisitions
rose from 11% to 16.5%
despite the crisis in 2009
ORGANIC GROWTH BY REGION AND ACTIVITY
Q1 2013
Europe
(*)
North
America
BRIC +
MISSAC
ROW
Total
Digital
-0.4%
+10.2%
+15.1%
+16.4%
+8.5%
Analog
-8.3%
-1.1%
+4.4%
+1.1%
-2.3%
Total
-6.5%
+4.4%
+5.5%
+3.2%
+1.3%
(*) : Europe excluding Russia and Turkey
The organic growth by region and activity at the end of Q1 2013 confirms
strategy is sound and indicates directions of future investments
ND
:2
STRATEGIC TURN
2013 - 2018
STEP
2018 GROUP OBJECTIVE: 75% OF ITS REVENUE IN DIGITAL
AND FAST GROWING MARKETS
PUBLICIS GROUPE ACTIVITIES WEIGHT
2012
2018
DIGITAL
33%
50%
FAST GROWING MARKETS
25%
35%
OVERLAP
3%
10%
55%
75%
REVENUE IN DIGITAL / FGM
NB: The overlap of 10% is a maximum estimate
NEW PROFILE: POSITIVE IMPACTS ON GROWTH
 2/3 of revenue coming from growth segments = +200 bp to +300 bp
growth rate higher than the market (including analog erosion)
 If, in 2012, 75% of the Groupe Revenue had been delivered by Digital
and Fast Growing Markets, 2012 Groupe organic growth would have
been 4.9% instead of 2.9% (despite GM loss and difficulties in
Healthcare)
 This new mix of Revenue is a key driver of the Group margin
improvement (+200 bp to +400 bp by end of 2018 vs. 2012)
ESTIMATED GROWTH RATE 2012-2018
 The target to reach 75% of revenue in digital and Fast Growing Markets will be achieved
with a mix of growth and acquisitions
 We expect equal weight from growth and M&A but phasing of acquisitions will be key
 Expected growth depends on the phasing of acquisitions
AVERAGE ANNUAL GROWTH
OVER THE PERIOD
TOTAL GROUP
+2.8%
DIGITAL
+6.8%
FAST GROWING MARKETS
+6.7%
OVERLAP (Digital in Fast Growing Markets)
+16.3%
REVENUE WEIGHT BY REGION AND ACTIVITY IN 2018
North
America
Central
Europe
BRIC +
MISSAC
Europe*
Digital
32%
Analog
Total
ROW
8%
1%
7%
2%
50%
16%
9%
1%
16%
8%
50%
48%
17%
2%
23%
10%
100%
Fast Growing Markets
35%
(*) : Europe excluding Central Europe, Russia and Turkey
Total
Groupe
Digital
50%
MARGIN IMPROVEMENT
FROM +200 bp to +400 bp
2018 vs. 2012
MARGIN IMPROVEMENT: METHODOLOGY
 The whole analysis has been conducted on average market conditions, excluding any
extraordinary elements such a Lehman Brothers collapse and monetary/economic
crisis in some markets
 However, a further deterioration of Europe has been factored in the plan
 The plan is based on the assumption that, without the programs described herein, the
Group would have delivered in 2018 the same margin as in 2012 (16.1%). All margin
improvements are calculated vs this margin ratio
 The plan is sensitive to the effective date of realization of the acquisitions: the sooner
the acquisitions are done,
− the lower will be the investment to be made
− the higher will be the margin improvement
MARGIN IMPROVEMENT
 Margin increase by 200 to 400 bp will be delivered by a change in:
− Mix of revenue: digital and fast growing countries constantly raise their level
of margin. Increasing their weight in revenue will improve the Group’s margin.
− Operational leverages: margin improvement coming from scalability in digital
and Fast Growing Markets
− Efficiencies: acceleration of ongoing cost initiatives
MARGIN IMPROVEMENT
 Margin improvement will not be delivered on a straight line basis.
It will take 4 to 5 years to deliver the full effect, which means at the
end of 2018
20%
19%
18%
17%
16%
15%
14%
2012
2013
2014
NB: indicative projection
2015
2016
2017
2018
DIGITAL SCALABILITY
 Main actions
− Continuous improvement of Digital activities margin and increased
weight of Digital activities in the Group revenue
− Productization, i.e. offering high added value products to our clients
(AOD…)
− Development of Digital production platforms (offshoring…)
Gross impact: from +170 bp to +200 bp in 2018 vs. 2012
SCALABILITY IN FAST GROWING MARKETS
 Main actions
− Reaching a critical mass in Fast Growing Markets: common support
functions scale effect
− Focus on profitability and improved scalability coming from the acquisitions
over the period
Gross impact: from +70 bp to +90 bp in 2018 vs. 2012
UNDERPERFORMING ENTITIES
 Main actions
− Improving the margin of underperforming entities (on-going),
− Implementation of multi-door agencies programs in bigger markets
(Creative / SAMS / Digital / Media)
Gross impact: from +90 bp to +110 bp in 2018 vs. 2012
ON-GOING COSTS INITIATIVES
 Main actions
− Optimization of Media agencies’ back offices,
− Improved efficiency due to a better utilization of employees’ time,
− Regionalization of SSCs and SSC process optimization,
− Implementation of the Group ERP
Gross impact: from +190 bp to +250 bp in 2018 vs. 2012
IMPACTS LOWERING THE MARGIN
− Integration of acquisitions in the digital field,
− Integration of acquisitions in Fast Growing Markets,
− Reorganization costs due to SSC regionalization, development of digital
production platforms (offshoring…), implementation of multi-door agencies
program,
− Additional resources necessary to deliver the plan,
− Contingencies
From -250 bp to -320 bp in 2018 vs. 2012
CONCLUSION
 Improvement of margin: summary by program
From +200 bp to +400 bp in 2018 vs. 2012
PROGRAM
MARGIN IMPROVEMENT
Digital scalability
From +170 to +200 bp
Scalability in Fast Growing Markets
From +70 to +90 bp
Underperforming agencies
From +90 to +110 bp
On-going costs initiatives
From +190 to +250 bp
Items which lower the margin
From -250 to -320 bp
THANK YOU!