Profiling people
2001 annual results
 Key figures
 New balances
 2001 annual results
 The Ipsos vision: leadership and partnership
 Challenges for 2002
Key figures
Growth and profitability
in millions of euros
 Revenues
 Operating profit
 Net income, shareholders’ part*
* Before amortisation of goodwill
480.2
+46%
36.9
+53%
17.3
+41%
2001: an unforeseeable market,
a good year for Ipsos
 1st quarter: TMT sector in crisis
 2nd quarter: economic slowdown
 3rd quarter: September 11
 4th quarter: Argentinian crisis, slump in Europe
Worldwide GDP*
Advertising market
Marketing information market
Ipsos (organic growth)
* Source : OECD
2000
2001
+4.7%
+10%
+1.3%
- 5%
+ 9%
+13%
+ 4%
+8%
New balances
2001, the year of new balances
 A balanced geographic presence between Europe
and North America
 Which helps strengthen our network of interwoven
competencies
A new geographical balance
Ipsos consolidated revenues
Europe
in M of euros
500
450
400
350
300
250
200
3%
150
100
97%
50
0
1997
North America
Latin America
Rest of the world
3%
1
14%
12%
5%
0,75
1%
14%
39%
1%
9%
14%
24%
77%
76%
61%
46%
0
1998
1999
2000
2001
0,5
10%
13%
42%
0,25
* source : research market 2000 - Esomar
39%
Marché
Market
2000*
Reinforced network of interwoven
competencies
Advertising Marketing
Europe
XX
XX X
North
America
X XX XXX
Latin
America
X X X X XX
Asia
Pacific
X
X
X
Media
Opinion
& Social
Research
XX
X
X
XX
X
XX
X
XX
X
Significant position before 2000
Position strengthened in 2000 - 2001
Quality &
Customer
Satisfaction
Advertising Research ...
 Definition
 helping advertisers to build strong brands
 measuring the effectiveness of advertisements
 ensuring a return on advertising investment
21% of revenues
All countries
Advertising Research
 2001 key factors
 dedicated organization extended to all major Ipsos
regions, under the Ipsos-ASI brand
 growth of tracking contracts
(17% in 1999, 30% in 2000 and 35% in 2001)
 product offering backed by an online version
12% growth in 2001
organic growth: +14%
No. 2 worldwide
Marketing Research ...
 Definition
 understanding the markets and their fluctuations
 identifying and optimising development opportunities
 evaluating the strategy to adopt
(products, prices, communication)
 developing and managing strong brands
50% of revenues
All countries
Marketing Research
 2001 key factors
 strengthened research on access panels, especially
online access panels
 development of online products
 enlargement of product range with Ipsos-Novaction's
modelling and consulting expertise
83% growth in 2001
organic growth: + 7%
No. 4 worldwide
Media Research ...
 Definition
 measuring the audience of the major media
 analyzing and understanding the media offer
in its editorial and advertising environment
 analyzing and understanding the behavior and wishes
of listeners, readers, television viewers, Internet users …
11% of revenues
Europe, Latin America
Media Research
 2001 key factors
 expansion of research in Latin America
• in Brazil with Ipsos-Marplan, leader in press research
and media-market research
• in Chile with Ipsos-Search Marketing
 continuation of all main audience contracts
in 11 countries
16% growth in 2001
organic growth: + 3.5 %
No.1 in United Kingdom, No.2 in France
and N°2 in Latin America
Opinion and Social Research ...
 Definition
 informing political and economic decision makers
of the behavior, expectations and opinions
of consumers and citizens
 tracking the evolution of opinions and behavior
in different countries and target populations
(employees, shareholders…)
6% of revenues
8 countries
Opinion and Social Research
 2001 key factors
 business development in the USA and Brazil
 acquisition of Mora y Araujo in Argentina
 partnership with Ipsos-Vizzavi, France 2, Europe 1,
Le Point and Le Figaro for the 2002 French elections
 worldwide extension of opinion trends research
(Trend Observer, Global Express)
44% growth in 2001
organic growth: + 15%
No. 1 in Canada, France and Hungary
Quality and Customer Satisfaction
Research ...
 Definition
 providing specific knowledge to companies concerning
customer expectations and satisfaction level
 assisting companies with the implementation
of their customer relations management policy
9% of revenues
All countries
Quality and Customer Satisfaction
Research
 2001 key factors
 development of the offering in North America
and Latin America
 strengthening of Automotive Research expertise
 winning of Repsol contract
51% growth in 2001
organic growth: + 7.5%
Position to be strengthened
2001 annual results
2001, a good year for Ipsos
 A successful integration policy
 Two examples:
 success of Ipsos-ASI
 success in North America
A successful integration policy:
companies integrated in 2000
2001
Date of
revenues
integration m euros
Organic
growth
Change
in oper.
inc.
01 vs 00
Company
Country
Ipsos-Reid
Canada
1st July
55.8
+ 29%
+ 67%
Ipsos-ASI Canada
Canada
1st February
17.4
+ 40%
+ 105%
Ipsos-Bimsa
Mexico
1st January
14.0
+4,5%
-5%
Research in Focus UK
1st October
7.2
+ 33%
+ 80%
Ipsos-Stat
Lebanon
1st July
2.4
+9%
+ 36%
Ipsos-Médiangles
France
1st January
2.0
- 25%
N/S
Ipsos-Link
China
1st April
1.9
+ 45%
x5
A successful integration policy:
companies integrated in 2001
Company
Country
2001
Date of revenues over
integration 12 months
m euros
NPD Marketing Research
USA
1st January
81.2
Novaction
Europe, Japan
1st July
23.4
Marplan
Brazil
1st January
6.5
Search Marketing
Chile
1st January
2.4
Demoskop
Poland
1st July
2.0
Mora y Araujo
Argentina
1st January
1.2
Riehle Research
USA
1st July
0.2
The Ipsos-ASI example
 1st July 1999: creation of Ipsos-ASI, an integrated
international organisation dedicated to Advertising
Research
 A wider product offering which covers all phases
of the advertising process
 An enhanced offer with an online version
for the different products
60% growth in two years
• 1999 revenues: 64.6 million euros
• 2000 revenues: 92.2 million euros
• 2001 revenues: 102.9 million euros
Average organic growth = 14%
Ipsos in North America
 1996: 2 staff in Chicago
 1998: Acquisition of ASI
 2000: Acquisition of the Angus Reid Group
and Tandemar
 2001: Acquisition of NPD Marketing Research
and Riehle Research
Revenues multiplied 6-fold in two years
• 1999 revenues: 31.5 million euros
• 2000 revenues: 77.0 million euros
• 2001 revenues: 186.4 million euros
Average organic growth = 11%
Ipsos in North America
 Centralized management since 1st March 2001
 A unified operational system
 A coherent business structure
 Integration completed on 1st January 2003
 1,000 employees
 17 offices
 a single accounting and finance system
Leading positions
• no. 1 in Canada
• no. 8 in the USA
Strong revenue growth...
Annual growth rate: 35%
with average organic growth: 10.3%
in millions of euros
8.0%
+46%
+43%
+16%
+38%
10.9%
7.1%
144.2
1997
199.3
1998
13.0%
12.7%
230.7
1999
480.2
329.4
2000
2001
… in all regions ...
Revenues
in millions of euros
2001/2000
Organic
growth*
Europe
223.8
+ 11%
+ 7.0%
North America
186.4
+ 142%
+ 10.0%
Latin America
56.4
+ 23%
+ 6.0%
Rest of the world
13.6
+ 141%
+ 10.0%
480.2
+ 46%
+ 8.0%
Total
* on a comparable basis
… and in all business lines
in millions of euros
2001/2000
Organic
growth*
Advertising Research
102.9
+ 12%
+ 14.0%
Marketing Research
241.2
+ 83%
+ 7.0%
Media Research
53.4
+ 16%
+ 3.5%
Opinion and Social Research
28.6
+ 44%
+ 15.0%
Customer Satisfaction Research
44.6
+ 51%
+ 7.5%
Other
9.5
N/S
N/S
Total
480.2
+ 46%
+ 8.0%
Revenues
* on a comparable basis
Strong improvement in results
1999
2000
2001
2001/
2000
Revenues
230.7
329.4
480.2
+46%
Gross margin
127.0
182.7
272.0
+49%
EBITDA
20.0
32.5
51.0
+57%
Operating profit *
14.0
24.1
36.9
+53%
Financial results
-1.8
-1.5
-8.8
-
Exceptional items
-0.4
-1.7
-1.1
-
EBIT
11.8
20.9
27.0
+29%
Companies at equity
-0.4
-1.4
-1.0
-
7.3
12.3
17.3
+41%
in millions of euros
Net income, shareholders’ part**
* after employes' share in profits
** before goodwill
Continued improvement
in operating margin...
Operating income / Revenues
7.3%
7.7%
6.3%
5.4%
3.2%
1997
1998
1999
2000
2001
… including in the second half of 2001
Operating income / Revenues
8,5%
8,8%
H2
S2 2000
H2
S2 2001
6,4%
5,5%
S1
H1 2000
S1
H1 2001
Breakdown of operating
margin increase
+ 1.0
+ 0.5
7.7%
+ 0.4
- 0.4
7.3%
2000
Increased Companies
margin consolidated
on perimeter in 2001
2000
- 0.3
Regional Worldwide
managemt products
structures
offer
- 0.6
Economies
of scale
parent co.
management
expenses
Effects
of
11 Sept.
- 0.2
Currency
effects
2001
The gap with competitors
is rapidly reducing
1999
2000
2001
Ipsos
6.1%
7.3%
7.7%
GfK
7.0%
8.4%
8.6%
TNS
8.9%
9.3%
9.5%
Kantar (WPP)
10.2%
10.1%
9.8%
2.6%
2.0%
1.6%
Gap between Ipsos and
average 3 competitors
Cash flow statement
in millions of euros
1999
Operating cash flow before working capital items
Change in working capital requirements
Change
2000 2001 01 vs 00
14.1
- 5.7
21.3
-15.2
31.3
+ 5.9
+47%
8.4
6.1
37.2
X6
-5.4
-21.8
-13.8
-54.8
-14.5
-196.7
-27.2
-68.6
-207.2
Share issue
Net change in debt / marketable securities
Dividends
27.5
-7.7
-0.3
107.7
-37.2
-3.0
20.3
+171.2
-2.8
Cash provided by financing activities
19.5
67.5
188.7
Net change in cash
+0.7
+5.0
+18.7
Cash provided by operating activities
Investments in tangible and intangible fixed
assets
Acquisitions and impact of changes
in consolidation scope
Cash used in investing activities
A sound financial position
in millions of euros
1999
2000
2001
Shareholders’ equity
61
177
200
Net debt
24
-12
153
Gearing
39%
-
76%
Net debt / EBITDA
1.20
-
2.99
Coverage
of financial charges
x 8.2
x 17.2
x 4.4
The Ipsos vision:
leadership and partnership
Leadership
 Leader on its market
 Organised by regions
 Global clients
 Global services
survey-based
Ipsos, leader in its core business:
survey-based research
Information gathered by surveys
A market still fragmented, with high growth potential
Profitable where there is a leadership, mono or multiclients
Major players:
Kantar, NFO,TNS, Ipsos, VNU … 25% of survey-based research
Also: Aegis, GfK, UBM, Westat
panels
Market superior to 11 billion euros
Information gathered by systematic statements
A concentrated market, average growth
Profitable where there is a monopoly or multiclients
Major players: VNU, IMS Health, IRI … 80% of panels research
Also: TNS, GfK, Observer
Market inferior than 6 billion euros
Ipsos reinforces its world leader
status
Rank
Survey-based research
companies
2001 revenues
m euros
1
The Kantar Group Ltd
UK
949
2
Interpublic (NFO)
USA
525
3
Ipsos
France
480
Taylor Nelson Sofres
UK
477
5
VNU (Nielsen)
USA
450
6
United Business of Media
(NOP World)
UK
400
7
Westat
USA
300
8
Aegis
UK
298
9
The Arbitron Co.
USA
254
10
GfK Group
Germ.
219
(Ipsos assessment from companies’ data)
Organised by regions
 2000: Structuring of activities in Latin America under
the leadership of Gustavo Lohfeldt
 no. 1 in Latin America in 2001
 2001: New regional structure in North America
with Simon Kooyman
 no. 6 in North America in 2001
 2002:
Creation of a regional management structure
in Europe with Jean-Michel Carlo
 no. 3 in Europe in 2001
 April 2002: Appointment of Richard Mecchi in Asia
Global clients
 1998, establishment of a key account
management system
 Tailor-made structure with dedicated teams
under the responsibility of a KAM or coordinator
 Efficient leverage to develop our activity with these
major clients, internationally and at a local level
2001 revenues: 80 million euros
Total growth vs. 2000: +96%
Of which organic growth: +30%
Key account management
 Colgate-Palmolive
 L’Oréal
 Daimler-Chrysler
 Pfizer Warner Lambert
 Danone
 Procter & Gamble
 Ford
 Reckitt - Benckiser
 General Mills
 SC Johnson
 Johnson & Johnson
 Unilever
 Kraft
* Teams under the responsibility of a KAM
* Teams under the responsibility of a coordinator
Global services
A range of global products and services
in every business line:
 Advertising Research
Next, Equity*Builder, Ad*Graph
 Marketing Research
Evolution, Concept Forecaster, Designor, Perceptor
 Media Research
Target Multi-Media Measurement (T3M)
 Opinion and Social Research
World Express, Trend Observer
 Quality and Customer Satisfaction Research
Cesar, Satisfactor Plus
Partnership
 Motivating remuneration systems
 Option plans
 Ipsos Partnership Fund
Motivating remuneration systems
 Annual and pluriannual bonus plans
 Representing 15% of the operating result
at financial objectives reached
 400 executives in the world
Shareholding and option plans
 Direct shareholding:
 2 tranches in 1999 and 2000: 1/3 of the employees
 Acquisitions paid in Ipsos stocks where employees
were shareholders
3.5% of the capital held by the employees
 Option plans: 4 tranches between 1998 and 2001
 executive plan: 400 persons
 broad-based plan: 3,350 persons
5.4% of the capital
Ipsos Partnership Fund
 Ipsos wants to reinforce its leadership
over the next five years
 The I.P.F. fund
 involves 80 managers worldwide
 reinforces their community of interests
 will be represented at the Ipsos Board of Directors
Ipsos Partnership Fund
 Before summer 2002, reserved capital increase
to I.P.F. (6 March 2001 extraordinary general meeting)
 at market price with no discount
 up to 9% of Ipsos capital
 For each I.P.F. stock subscribed
 option to purchase Ipsos stock granted
 three-year lock-up period
 multiple of three after three years
 linear growth until a multiple of 15 after five years
 option exercise subject to continued presence within Ipsos
Challenges for 2002 …
Challenges for 2002 …
 From a geographical viewpoint
 continue expansion in Asia,
Central Europe and Northern Europe
 achieve strong growth in North America
 maintain our activity in Latin America despite
Argentine crisis
 reinforce our excellence in Europe
Challenges for 2002 …
 In our business lines
 assert our leadership in online data collection
 greater operational performance
 accelerate the global launch of new services
 greater added value
 attract new talents
Challenges for 2002 …
 From the point of view of performance
 maintain higher organic growth than that
of the market and competitors, at least 8%
 continue improvement of operating margin
Ipsos: 2005 - 2006 outlook
An increasingly specialized global leader
1 billion euros of revenues
100 million euros of operating income
Profiling people