PARIS, February 17, 2010 /PRNewswire-FirstCall/ -- 1. Fourth
quarter 2009 - Revenue EUR 1,268 million - Organic growth -5.4%
(-4.6% excluding GM) 2. Full year 2009 - Revenue EUR 4,524 million
- Organic growth -6.5% (-5.3% excluding GM) - Operating margin EUR
680 million - Percentage operating margin 15.0% - Net income
attributable to Publicis Groupe EUR 403 million - Free cash flow
(1) EUR 524 million - Headline diluted EPS (2) EUR 1.97 -
Debt/equity ratio 0.14 - Dividend (3) 0.60 (1) Before change in WCR
(2) Before impairment, amortization of intangibles arising on
acquisition, capital gains (losses) on sales of land and buildings,
and the tax credit associated with the deferred tax liability on
2014 Oceane (3) Subject to the approval of the Annual general
Meeting of shareholders on June 1,2010 Maurice Levy, Chairman and
Chief Executive Officer of Publicis Groupe comments: "The year was
something of a paradox for the Publicis Groupe. While our
marketplace experienced a double-digit downturn, we were able to
stop the slide and cut it by half, thus actually gaining market
share. The economic environment worldwide was characterized by
constant crisis of unprecedented proportions. In our industry, it
manifested itself by a shrinking of the advertising market, which,
month after month, caused us to reduce our outlook by as much as
12% to 14%. That left us few options but to manage on a short-term
basis, making constant corrections that nevertheless kept us on
course to pursue our long-term strategy. The upheaval in our
industry was generated not only by macroeconomic factors; it was
also the product of changing dynamics in the communications
business. This included the rapid development of digital
technologies, the explosion of social networks and other forms of
communication, accentuating the shift in the media landscape and
accelerating the pace of changes in consumer behavior. What has all
this meant for the Groupe? A decline in organic growth, yet one
limited in our case by an improved performance in New Business.
Thus, while the market overall was down by 12% to 14%, Publicis
managed to limit the decrease to 6.5%, thereby gaining market
share. Tight control over our costs and headcount; services with
added value; these are some of the reasons why we were able to
achieve an operating margin which remains one of the highest on the
market despite the crisis. We can also report an exceptionally
sound balance sheet, coupled with a significant reduction in debt,
a high level of liquidity, and a debt/equity ratio of 0.14. So it
would be no exaggeration to say that Publicis has weathered the
crisis well, containing its negative impacts on both margin and
growth, while, at the same time, taking strategic initiatives to
make the most of the recovery. Our performance in New Business and
the market share gained in 2009 will bear fruit fairly rapidly. I
would like to thank our clients who were at once more demanding and
yet even more confident in placing their trust in us. Our
employees, in every sector and in every corner of the world,
redoubled their efforts and proved their talent, creativity,
innovation and dedication despite a freeze on pay and recruitment
(selective, to ensure we remain highly competitive). Thank you, all
of you; once again, you made all the difference. After massive
investments in digital in the recent past, made with an eye to the
future, Publicis has now added to its strengths with the
acquisition of Razorfish. Our aim is eventually to derive a total
of 60% of our revenue from the two sectors of digital activities
and emerging economies. As already announced, we are seeing a
steady and continuing increase in our numbers starting last summer,
and the trend continued in January 2010. Our objective is to return
to positive organic growth, outperforming the market once again, in
2010. We are continuing to invest in talent and technology and are
aiming to maintain our margins prior to embarking in 2011 on a new
phase of margin growth." The Supervisory Board of Publicis Groupe
at its meeting of February 16, 2010, chaired by Mrs. Elisabeth
Badinter, approved the financial statements for the 2009 financial
year presented by Mr. Maurice Levy, Chairman and CEO. Key figures
in EUR million, except for 2009 2008 2007 percentages and
(unaudited) per-share data (in euros) Income statement data Revenue
4,524 4,704 4,671 Operating margin before 772 889 888 depreciation
and amortization As % of revenue 17.1% 18.9% 19.0% Operating margin
680 785 779 As % of revenue 15.0% 16.7% 16.7% Operating income 629
751 746 Net income attributable to 403 447 452 Publicis Groupe
Earnings per share 1.99 2.21 2.18 Diluted earnings per share 1.90
2.12 2.02 Dividend per share 0.60 0.60 0.60 Balance sheet data
December 31, December 31, December 2009 2008 31, 2007 Total assets
12,730 11,860 12,244 Shareholders' equity 2,813 2,320 2,198 The
dividend of EUR0.60 per share will be proposed to the Annual
General Meeting of shareholders on June 1, 2010. Subject to
approval by the AGM, the dividend will be payable as of July 5,
2010. Analysis of key figures - 2009 activity As expected, after
the advertising market reached its low point in 2009 during the
summer, the decline, which had been gathering pace since mid-2008,
began to slow, and then stopped. The fourth quarter brought an
improvement, confirming the first signs of recovery. While the
second half-year benefits from comparison against a weak second
half during the previous period, and although the recovery is still
only very gradual, the renewed activity of advertisers seems to be
real. - 2009 revenue Consolidated revenue for 2009 was EUR4,524
million, compared with EUR4,704 million in 2008, i.e. down 3.8 %.
(Exchange rate impact was 28 million euros). Organic growth was
-6.5% but, without General Motors, would have been -5.3%. Digital
Services continued to grow rapidly, achieving 7.1% organic growth.
If the negative impact of General Motors were factored out, organic
growth would have reached 11.9%. Digital activities accounted for
22.4% of total revenue. Specialized Agencies and Marketing Services
(SAMS), including all digital activities, accounted for 44% of 2009
consolidated revenue compared to 35% for advertising and 21% for
media. Revenue from emerging economies integrating high-growth
countries represented 22.5% of the Groupe's total revenue in 2009
(excluding Razorfish). - Breakdown of 2009 revenue by region: 2009
revenue breaks down by region as follows: (EUR million) Revenue
Organic growth 2009 2008 Europe 1,579 1,805 - 9.9% North America
2,094 2,008 - 4.2% Asia-Pacific 499 519 - 7.7% Latin America 218
238 - 0.6% Africa and Middle 134 134 - 4.0% East Total 4,524 4,704
- 6.5% Without exception, all regions were adversely affected by
the economic crisis already in evidence in the last quarter of 2008
but which gradually worsened until it peaked in the second quarter
of 2009. Europe was very severely hit, particularly southern Europe
where revenue fell by over 15%. North America fell 4.2% but held up
well due to the high proportion of digital services in the region
(34.6% of the Groupe's revenue in North America). Factoring out the
impact of the GM bankruptcy, the Groupe would have posted organic
growth of -1.2% for North America, with Digital Services alone
achieving +15.3% organic growth. Asia-Pacific, on the other hand,
experienced a sharp downturn in activity, but showed a marked
improvement in the last quarter. Latin America fared well, due
largely to Brazil. Finally, Africa and the Middle East were
penalized by the severe financial crisis in Dubai. 2009 revenue in
US dollars would be $6,287 million, down 8.9% on last year. In GBP,
revenue would be GBP4,029 million, an increase of 7.9%. - Revenue
in the 4th quarter of 2009 Consolidated revenue in the 4th quarter
of 2009 stood at EUR1,268 million, down 7.6% from EUR1,373 million
for the corresponding period in 2008. The exchange rate impact was
negative by 86 million euro. Organic growth was -5.4% for the last
quarter, a net improvement on the third quarter (-7.4%). Excluding
GM, the reduction was 4.6% - Breakdown of 4th quarter revenue by
region Revenue in Q4 2009 breaks down as follows: (EUR million)
Revenue Organic growth 4th quarter 4th quarter 2009 2008 483 521
-7.5% Europe North America 545 585 -4.0% Asia-Pacific 146 152 -2.8%
Latin America 51 65 -1.7% Africa and Middle 43 50 -12.1% East Total
1,268 1,373 -5.4% - Operating margin Operating margin before
depreciation and amortization of EUR772 million in 2009 represented
17.1% of revenue, and was down 13.2% from EUR889 million in 2008.
Operating margin was EUR680 million, 15% of revenue in euros, down
13.4% on 2008. Personnel expenses totaled EUR2,812 million,
compared with EUR2,852 million in 2008, i.e. down 1.4% and
equivalent to 62.2% of total consolidated revenue. Major efforts
were made during this period of markedly slower activity and, after
eliminating acquisition effects, personnel expenses in 2009 were
down 4.9% on those of 2008 (stated at the 2009 exchange rates).
Other operating expenses totaled EUR940 million, a decrease of 2.4%
by comparison with 2008, despite the higher occupancy-related costs
(rent and charges), thanks to continued optimization efforts. When
acquisition effects are factored out, total operating costs in 2009
fell 5.1% by comparison with 2008 (restated at 2009 exchange
rates). The percentage operating margin was 15.0% in 2009. This
percentage margin is down on 2008 and reflects the adjustments and
restructurings implemented in 2009, whether due to the downturn in
revenue or to longer-term restructuring operations. Restructuring
costs amounted to EUR80 million for 2009. Ongoing efforts to
control costs throughout the Groupe made it possible to absorb the
costs of integrating various acquisitions and of accelerating the
rollout of digital activities worldwide. The Groupe secured its
operating margin by optimizing various operating expenses and by
controlling investments. - Net income After a net financial expense
of EUR70 million, a tax charge of EUR146 million, share of profit
of associates (accounted for by the equity method) of EUR4 million
and minority interests of EUR14 million, net income attributable to
the Groupe stood at EUR403 million, compared to EUR447 million in
2008. - Free Cash Flow (excluding change in Working Capital
Requirements) The Groupe's free cash flow, excluding changes in
working capital requirements (WCR), was EUR524 million for the
period. - Net financial debt Net financial debt was reduced by
EUR283 million (a reduction of 42%), from EUR676 million at
December 31, 2008 to EUR393 million at December 31, 2009. The
Groupe's average net debt at December 31, 2009 was also down
sharply at EUR929 million, from EUR1,102 million at December 31,
2008. Available liquidity at the end of the year stood at EUR3.7
billion. - Shareholders' equity Consolidated shareholders' equity
including minority interests was EUR2,838 million at December 31,
2009 compared with EUR2,350 million at December 31, 2008. At
December 31, 2009, the debt/equity ratio was 0.14 compared with
0.29 at December 31, 2008. Highlights of 2009 - Awards/creativity
On the creative side, the Groupe equaled its performances of recent
years. Publicis Groupe has occupied the Gunn Report's top spot for
Creative Performance without interruption since 2004. At the Cannes
Lions 56th International Advertising Festival, Publicis Groupe won
one Grand Prix and 110 Lions including 21 Gold, 25 Silver and 46
Bronze. The Groupe was also highly successful at the Clio Awards,
the prestigious international advertising competition, with 54
awards (13 Gold, 11 Silver and 30 Bronze). Last but not least,
Publicis Groupe took 84 awards at The One Show, including 3 Gold, 5
Silver and 8 Bronze awards. Publicis Groupe entities were awarded
top prizes in all major advertising sector festivals, particularly
the Effie Awards, FIAP (Festival Iberoamericano de la Publicidad),
Eurobest, New York Festival Awards, Valencia Festival of Media,
Asian Marketing Effectiveness Awards, Andy Awards, D&AD, ANA
Awards, El Ojo de Iberoamerica Festival, Telly Awards, Sabre
Awards, European Excellence Awards, Manny Awards, Clio Healthcare
Awards, Epica, Dubai Lynch, CMAs, OMMAs, Media Spikes Asia, Golden
Drums, Asia Pacific Advertising Festival, etc. Four agencies
received "Agency of the Decade" awards: BBH (BestAds Agency of the
Decade), Saatchi & Saatchi Australia (Campaign Brief), with
Saatchi & Saatchi New Zealand ranked second best Agency of the
Decade (Campaign Brief). Adweek also ranked Starcom MediaVest Group
best media agency of the decade. In addition, Publicis Groupe
agencies carried off 9 "Agency of the Year" awards. - Employee
stockholding Significantly, despite the very uncertain economic
environment and the instability in the advertising market, 136 key
executives at Publicis Groupe opted to subscribe to a proposed
co-investment program. At the same time, the Groupe also decided to
issue 50 free shares to all members of staff, beginning with a
program in France in 2009 before implementing the program worldwide
over the next two years. These decisions clearly illustrate the
commitment of the key executives to the Groupe and that of the
Groupe towards all its employees. - New Business 2009 was a very
good year for account wins with net new business totaling $6
billion, thus confirming the attractiveness and competitiveness of
Publicis Groupe's offering and placing the Groupe well ahead of all
its competitors (as ranked by Nomura, Goldman Sachs and JP Morgan).
- External growth In line with its strategy of focusing development
on high-growth activities, particularly in digital communication
services, while adding to its network of specialized agencies,
Publicis Groupe pursued an active policy of external growth in
2009. - Digital Services acquisitions: The acquisition from
Microsoft of Razorfish, the world's Ndegrees2 interactive agency
(the leader, Digitas, is already owned by Publicis), was closed on
October 13, 2009, consolidating the Groupe's leadership in digital
services for the future while bringing in new digital skills and
adding to our portfolio of blue-chip clients. Following the
closing, the two groups also signed a strategic alliance agreement
enabling Microsoft to broaden its offering and Publicis Groupe to
provide its clients with access to very attractive offers. Under
the terms of this agreement, VivaKi and Microsoft will provide the
Groupe's clients with higher added value and greater efficiency in
all aspects of digital services, whether in terms of content,
performance or audienceIn early April, Publicis Groupe acquired
Nemos, the leading interactive communications agency in
Switzerland. The acquisition was motivated by the Groupe's ongoing
strategic commitment to offering digital services. On September 1,
Publicis Groupe acquired Unilever's CRM program Pour Tout Vous
Dire. Publicis emerged from this acquisition with one of the four
leading multi-brand CRM platforms in the consumer goods business in
France. Initially designed to add value to 30 Unilever brands
spanning beauty, hygiene, food products and services, the program
currently covers more than 5 million households, including 2
million customers on an online basis. Pour Tout Vous Dire offers a
benchmark e-CRM platform for showcasing brands and fostering
interaction with consumers. It will gradually be rolled out to all
consumer retail brands and fast moving consumer goods and thus made
available to other advertisers. - Other acquisitions In May,
Publicis Groupe announced the acquisition of its long-term
affiliate Publicis MARC, the Bulgarian integrated communications
agency. The Sofia-based agency joined the Publicis Worldwide global
network. In early September, Publicis Groupe announced its
acquisition of a majority stake in the Women's Forum for the
Economy and Society. Founded in 2005, this is an independent global
women's forum. In 2009, the Women's Forum numbered 1,200
participants from 90 countries. The shared goal is to expand the
scope of the Forum meetings as of 2010 to eventually cover all
world regions. These initiatives bear witness to Publicis Groupe's
ability to anticipate market developments in order to meet its
clients' new needs, provide the solutions consumers expect, and
thus assure the Groupe's growth. - Finance In the midst of the
liquidity crisis, and as part of its endeavor to preserve the
Groupe's financial strength and capacity, on June 24, 2009,
Publicis Groupe S.A. launched a EUR719 million convertible bond
issue that will mature in 2014. Moreover, in December 2009, the
company issued an offer to exchange its 2012 Eurobonds with a view
to the issuance of new 2015 bonds. The purpose of these two
transactions was to extend the company's resources over a longer
period. 2010 - Recent events January 2010 saw the early redemption
at the holders' option of outstanding 2018 Oceane convertible
bonds. According to the 2018 Oceane prospectus, any holder was
entitled to request early redemption of all or part of its Oceane
bonds at the early redemption price of EUR45.19 per bond. At the
early redemption date, i.e. January 18, 2010, a total of 617,985
Oceane bonds were repaid early for a total amount of EUR28 million.
The number of these Oceane bonds outstanding is 2,624,538,
representing 14.9% of the number initially issued (17,624,521).
Furthermore, in view of the authorization granted by the Combined
Annual General Meeting of the shareholders on June 9, 2009,
Publicis Groupe SA entered into an agreement on January 8, 2010,
with an authorized intermediary, with a view to purchasing 2.7
million Publicis Groupe shares. This authorization was granted for
a period of eighteen months from June 9, 2009, i.e. until December
8, 2010. - New Business The early part of 2010 continues to be
dynamic with more new accounts being won. Since January 1, the
Groupe is proud to number Chrysler, Aviva and Turner Broadcasting
among its new clients. Outlook Despite the still difficult global
context and economic uncertainties, Publicis Groupe can confirm an
improvement in its key figures since the summer of 2009, with a
more rapid return to growth in the emerging economies. The recovery
in the developed economies is proving slower and more gradual.
These trends should accelerate towards the middle of the year.
While the strategy implemented in recent years has enabled the
Groupe to weather the crisis much better than the market as a
whole, Publicis Groupe has decided for 2010 to equip itself with
necessary additional means required to better prepare the future.
In this perspective, and during the quarters to come, the Groupe
will continue its growth and transformation by integrating its
digital activities as a core business, by investing in businesses
and regions where growth and value are to be found. The Groupe also
intends to continue investing in talent while optimizing costs,
notably by the development of shared service platforms, the
deployment of ERP worldwide and the reconfiguration of information
systems. The Groupe has set itself the medium-term goal of
expanding its digital activities and its positions in high-growth
countries with the aim of generating the bulk of its total revenue
from these two segments, in order to return to, or even surpass,
the levels of percentage operating margin it enjoyed before the
financial crisis. The Groupe's financial situation is very solid,
with sufficient liquidity for its future development. New business
won in recent years, and particularly in 2009, demonstrates the
dynamism and attractiveness of Publicis Groupe, as well as its
commitment to its clients which permitted it to win increased
market share. It is these qualities that will enable Publicis
Groupe to achieve positive organic growth in 2010, and greater than
that predicted for the market as a whole. About Publicis Groupe
Publicis Groupe [Euronext Paris: FR0000130577] is the world's
fourth largest communications group. In addition, it is ranked as
the world's second largest media agency, and is a global leader in
digital and healthcare communications. With activities spanning 104
countries on five continents, the Groupe employs approximately
45,000 professionals. Publicis Groupe offers local and
international clients a complete range of advertising services
through three global advertising networks, Leo Burnett, Publicis,
Saatchi & Saatchi, and two multi-hub networks, Fallon and
49%-owned Bartle Bogle Hegarty. Media consultancy and buying is
offered through two worldwide networks, Starcom MediaVest Group and
ZenithOptimedia; and interactive and digital marketing led by
Digitas and Razorfish. Publicis Groupe launched VivaKi to leverage
the combined scale of the autonomous operations of Digitas,
Razorfish, Starcom MediaVest Group, Denuo and ZenithOptimedia to
develop new services, tools, and next generation digital platforms.
Publicis Groupe's Specialized Agencies and Marketing Services offer
healthcare communications, corporate and financial communications,
sustainability communications, shopper marketing, public relations,
CRM and direct marketing, event and sports marketing, and
multicultural communications. Web site:
http://www.publicisgroupe.com/ "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 press release 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
press release. Other than in connection with applicable securities
laws, Publicis Groupe undertakes no obligation to publish revised
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events. Publicis Groupe urges you to review and
consider the various disclosures it made concerning the factors
that may affect its business carefully, including the disclosures
made to the French financial authority (AMF)" Definitions
Percentage operating margin: operating margin as a percentage of
revenue Average net debt: 12-month average of average monthly net
debt Free cash flow: cash flow from operations after net capital
expenditure excluding acquisitions Net new business: this figure is
not taken from financial reporting but is based on an estimate
derived from the estimated media-marketing budgets based on an
estimate of annualized advertising media spending on new business,
net of losses, from new and existing clients For further
information, please visit our website:
http://www.finance.publicisgroupe.com/ Appendix New Business 2009
Key New Business Wins Digitas Total (France), TGI Friday's (United
States), Whirpool (Brazil), Carrefour (Brazil) Fallon The Auteurs
(global), Kerry Foods LowLow (United Kingdom), Burton's Foods
Jammie Dodgers (United Kingdom), Unilever (United Kingdom), Cadbury
Maynards wine gums (United Kingdom), Innocent (United Kingdom),
Oxfam International (United Kingdom), Comic Relief (United
Kingdom), The BBC - Olympics 2012 design (United Kingdom), Orion
books (United Kingdom), SeeSaw (United Kingdom), RSA Group 300th
Anniversary (United Kingdom), SCA Hygiene - Velvet & Charmin
(Europe), Chrysler (United States), Charter Communications (United
States), Cruzan Rum (United States), Barry Callebaut (United
States) Leo Burnett Caltex oil (Australia), Carrefour (Colombia),
MCYS Government Social Awareness (Singapore), MillerCoors (United
States), Turkcell telecom (Turkey), Wellatone-P&G (Russia),
Falabella department store (Colombia), TVO television channel
(Canada), Alfa telecommunications (Lebanon), Tourism Board
(Singapore), Movistar (Colombia), Telkomsel mobile telecom
(Indonesia), Herbapol food (Poland), BMW (China), Ajisen Ramen
(China), Alpina (Columbia), Zeebo Toys (Mexico), Shop Direct
Littlewoods.com (United Kingdom), Fiat (Brazil), Heinz (Mexico),
Sportsbet (Australia), Thailand Business Coalition on Aids
(Thailand), Kellogg's (global) MS&L Group Volkswagen (Asia),
Middle East Coal (Asia), World Gold Council (global), Biscuit
LeClerc (United States), Carrefour (France), City of The Hague
(Netherlands), Diageo (United Kingdom), FIMF online banking
services (Germany), Lactalis dairy products (Italy), Ministry of
Agriculture (Netherlands), Ministry of Economy, Industry and
Employment (France), Roman Meal (United States), Sanofi-aventis
(Germany), Multaq Pharmaceuticals (USA), Mead Johnson (USA), French
Hospitals Foundation (France), Shell (Germany), Ministry of
Interior (The Netherlands), Nestle Gerber (United States) Publicis
Worldwide Carrefour (International), Procter & Gamble Crest
(International), Vichy (United Kingdom), Wrigley (China), Zurich
Connect (EMEA), Century 21 (France), BNP Paribas-Fortis (Belgium),
Pernod-Ricard/ Malibu (global), Swatch (Brazil), Nestle (Brazil),
Anheuser-Bush In Bev - Beck's (United States), Barratt Developments
(United Kingdom), Royal Bank of Scotland (United Kingdom), BMW
(South East Asia), The Children's Workforce Development Council
(United Kingdom), T.G.I Friday's (United States), HP Personal
Systems Group - Above the line and digital (Europe/Middle
East/Africa), Yoplait (United Kingdom), Armani Fragrances (global),
Ebay (France), Marriott (Hong Kong), Prime Gaming (United Kingdom),
Easyjet (United Kingdom), Cirque du Soleil (Europe), Walmart
(United States), Chevrolet/Chevy (United States), Nescafe Dolce
Gusto (global), Compaq (global), Maserati (France), Le Monde
(France) Publicis Healthcare Communications Group (PHCG)
Sanofi-aventis (Aplenzin-United States), Biogen-Idec neurology
(United States), Durex (United States) Saatchi & Saatchi House
of Travel (New Zealand), Invalidity Insurance (Switzerland), LMG
International auto insurance (Thailand), Panasonic (Indonesia),
RTA/Dubai Metro Launch (United Arab Emirates), Suning household
electrical appliances (China), Tsingtao beer (China), Midea
household electrical appliances (China), Cadbury Dairy Milk
(Australia/New Zealand), MillerCoors-Miller Genuine Draft,
Keystone, NGD 64 beer (United States), HP PSG (Switzerland/EMEA),
San Miguel (United Kingdom), Siemens (China), Amway-Nutrilite
(China), Maxima (India), Kerry Foods (United Kingdom), Wei Chuan
(Taiwan), Huiyan Juices (China), Oak Pacific
Interactive-http://www.renrens.cn (China), Asia games & China
Football Club (China), Lion Nathan- Hahn Super Dry (Australia),
Sara Lee/Douwe Egberts - Senseo (Belgium/Europe), Haagen-Dazs
(France), EurosportBet (France), Vivesco (Germany), Postel (Italy),
The European Tour (global), Olympus (United Kingdom), Asda (United
Kingdom), Mead Johnson (United States), Merck Sharp & Dohme
(Singapore/Asia), Toyota (Finland, Spain, Sweeden, UK) Starcom
MediaVest Group Capital One (United Kingdom), Cerveceria Nacional
(Panama), Heinz (Mexico), Honda (Spain), Kraft Foods (United Arab
Emirates), Metro Group (Poland), PTC telecommunications (Poland),
PZU financial services (Poland), Schering Plough Claritin
(Hungary), CNAMTS health insurance (France), Supermercados Plaza's
(Venezuela), Bupa International health insurance (United Kingdom),
British Gas (United Kingdom), Comcast (United States), An Post
postal service (Ireland), National Foods / Dairy Farmers
(Australia), Wrigley food (United States), TGI Friday's (United
States), Adevarul Holding media (Romania), Abbott Healthcare
(India), Baguepi food (France), MEDEF (France), Telefonica (Latin
America), Autoglass (United Kingdom), Bristol-Myers Squibb (United
States), World Gold Council (United Arab Emirates), Eko Mobile
(India), Kellogg's (Korea), Malaysia Airlines (Malaysia), Walt
Disney Entertainment (India) The KaPlan Thaler Group Wendy's
(United States, Canada), Napa Auto Parts (United States), Omnaris
(United States), Cascade (global) ZenithOptimedia Al-Bandar Group
multibrand shop (Saudi Arabia), Nestle (Netherlands), Si.mobil
Vodafone (Slovenia), Jenny Craig (United States), Ubank
(Australia), T38/40 weight-loss product (Portugal), MTV (United
Kingdom), Panasonic (Indonesia), Turismo de Valencia (Spain),
Haberturk newspaper (Turkey), British Airways (United Kingdom),
Kang Yuan pharmaceutical products (China), Parques Reunidos
amusement parks (Spain), Sanofi-aventis (Ukraine), Madrid 2016
(Spain), ICO public institute for loans and financing (Spain),
Tourism of Cataluna (Spain), 118118 (United Kingdom), JP Morgan
(United States), TCL electronic components (China), Videocon Group
telecommunications (India), Ministry of Community Development,
Youth and Sports (Singapore), Travel Channel (Germany), Charles
Vogele garment industry (Germany), JKP music production (Germany),
Ministry of Agriculture and Rural Development (Poland), LIDL
supermarkets (Spain), Saxo Bank (Switzerland), Gucci Group (United
States), Perfetti Van Melle confectioner (China), Red Bull (China),
Mars (China), Roads and Transport Authority (United Arab Emirates),
Red.Es Public institution, entity for the ministry of industry,
tourism, and commerce (Spain), Campofrio (International), Mars
Wrigley (UK, Spain), Dairy Queen food (United States), Mortgage
Choice (Australia), Marriott (Asia-Pacific), Wearnes Automotive
(Singapore), Gamina digital (Taiwan), l'Oreal (Thailand), Turismo
del Pais Vasco (Spain), Pringle of Scotland Clothing
(International), Georgia Pacific (Spain), WingTai Fashion
(Singapore), Unitech Wireless (India), Decathlon (Belgium),
Lactalis (EMEA), Ministry of Information, Communication and the
Arts (Singapore), Costbank (Germany), Arma (Egypt), Orlen (Poland),
Molson Coors (United Kingdom), L'Oreal China (China), Swarovski
(APAC) 2009 Press Releases 01/08/09 Mathias Emmerich is appointed
Senior Vice President of Publicis Groupe 01/14/09 Philippe
Lentschener leaves Publicis Groupe 02/04/09 Isabelle Simon joins
Publicis Groupe as Senior Vice President 02/11/09 Annual results
2008 02/12/09 Publicis announces that it has repurchased a portion
of its OCEANEs maturing on January, 18, 2018, and is offering to
purchase the remaining OCEANEs for a price of EUR42.5724 per bond
02/20/09 Results of the standing purchase offer of OCEANEs maturing
on January 18, 2018 03/11/09 Publicis Groupe involves its employees
in Group growth 03/24/09 136 Publicis key executives invest
strongly in the Group 04/15/09 Publicis Groupe pursues its global
digital expansion, acquires Nemos, Swiss leader in multimedia and
flash programming 04/16/09 Publicis Groupe won HP personal systems
group pan-European advertising and digital communications 04/30/09
Eric Giuily leaves Publicis Consultants | Worldwide 05/11/09
Appointments at Publicis Groupe 05/19/09 Publicis Groupe acquires
the Publicis MARC Group, strengthens holistic offer in the Balkan
region 05/20/09 Publicis Groupe grants 50 free shares to each
employee in France 06/04/09 Publicis Groupe - General Motors
06/09/09 Publicis Groupe annual general shareholders' meeting,
dividend set at 0.60 euros per share 06/16/09 Publicis Groupe
announces the offering of convertible bonds 06/16/09 Publicis
Groupe issue of convertible bonds (OCEANEs) in the amount of 625
million euros - Final terms for the OCEANE 2014 06/17/09 Publics
Groupe issue of convertible bonds (OCEANEs) in the amount of 625
million euros - Granting of the AMF visa 06/19/09 Publics Groupe
issue of convertible bonds (OCEANEs) - Exercise of the
over-allotment (greenshoe) option for the issue of approximately
625 million euros increased to approximately 719 million euros
06/25/09 Microsoft Corporation and Publicis Groupe announce broad
strategic agreement 06/30/09 Publicis Groupe, second most awarded
group in Cannes, with a total of 101 Lions 07/09/09 Publicis Groupe
to receive the 2009 Global Equity Organization award for the most
innovative and creative plan design for its employee stock plan
13/07/09 Publication date for half-year results 22/07/09 GM
23/07/09 Half-year 2009 results 09/08/09 Publicis Groupe to Acquire
Razorfish from Microsoft Corporation 01/09/09 Publicis Groupe
Announces Acquisition Agreement of Unilever C.R.M. Program "Pour
Tout Vous Dire" 03/09/09 Women's Forum for Economy and Society
Joins Publicis Groupe 22/09/09 Publicis Groupe Phonevalley
Collaborates With Microsoft Mobile Advertising on Custom Mobile
14/10/09 Acquisition of Razorfish Closed 16/11/09 Publicis Groupe
Combines MS&L Worldwide, Publicis Consultants And Publicis
Events To Create A Powerful Public Relations and EventsNetwork,
MS&L Group 01/12/09 Supervisory Board 16/12/09 Renault Pursues
its Relationship with Publicis Groupe 18/12/09 Successful
Completion of Publicis Groupe Exchange Offer For further
information: http://www.publicisgroupe.com/ Publicis Groupe 2009
Consolidated Financial Statements (unaudited) Consolidated income
statement (in millions of euros) 2009 2008 2007 Revenue 4,524 4,704
4,671 Personnel expenses (2,812) (2,852) (2,829) Other operating
expenses (940) (963) (954) Operating margin before depreciation and
772 889 888 amortization Depreciation and amortization expense (92)
(104) (109) (excluding intangibles arising on acquisitions)
Operating margin 680 785 779 Amortization of intangibles arising on
(30) (29) (30) acquisitions Impairment (28) (13) (6) Non-current
income (expense) 7 8 3 Operating income 629 751 746 Interest
expense (73) (110) (124) Interest income 12 29 51 Cost of net
financial debt (61) (81) (73) Other financial income (expense) (9)
2 (5) Net income of consolidated companies 559 672 668 before taxes
Income taxes (146) (196) (201) Net income of consolidated companies
413 476 467 Share in net income of associates 4 2 9 Net income 417
478 476 Net income attributable to minority 14 31 24 interests Net
income attributable to equity holders 403 447 452 of the parent Per
share data (in euros) Number of shares 202,257,125 202,536,963
207,599,301 Net earnings per share 1.99 2.21 2.18 Number of shares
- diluted 220,867,344 220,728,941 239,365,113 Net earnings per
share - diluted 1.90 2.12 2.02 (unaudited) Consolidated statement
of Comprehensive income (in millions of euros) 2009 2008 2007 Net
income for the period (a) 417 478 476 Other comprehensive income -
Reevaluation of securities available 12 (15) (16) for sale -
Actuarial gains and losses on defined (4) (45) 11 benefit plans -
Cumulative translation adjustment (59) (5) (216) - Deferred taxes
on other comprehensive 1 16 (3) income Other comprehensive income
for the (50) (49) (224) period(b) Total comprehensive income for
the 367 429 252 period (a) + (b) Attributable to minority interests
17 28 21 Attributable to equity holders of the 350 401 231 parent
(unaudited) Consolidated balance sheet (in millions of euros)
December December December 31, 2009 31, 2008 31, 2007 Assets
Goodwill, net 3,928 3,693 3,546 Intangible assets, net 835 794 826
Property and equipment, net 458 480 501 Deferred tax assets 73 91
148 Investments in associates 49 44 49 Other financial assets 94
101 112 Non-current assets 5,437 5,203 5,182 Inventory and costs
billable to 290 319 391 clients Accounts receivable 4,875 4,843
4,926 Other receivables and other 548 628 432 current assets Cash
and cash equivalents 1,580 867 1,313 Current assets 7,293 6,657
7,062 Total assets 12,730 11,860 12,244 Liabilities and
shareholders' equity Share capital 79 78 81 Additional paid-in
capital and 2,734 2,242 2,117 retained earnings Sharholders' equity
2,813 2,320 2,198 Minority interests 25 30 27 Total equity 2,838
2,350 2,225 Long-term financial debt (more 1,796 1,323 1,293 than 1
year) Deferred tax liabilities 214 232 240 Long-term provisions 449
459 449 Non-current liabilities 2,459 2,014 1,982 Accounts payable
5,835 5,802 5,662 Short-term financial debt (less 214 218 819 than
1 year) Income taxes payable 63 68 99 Short-term provisions 100 110
107 Other creditors and other current 1,221 1,298 1,350 liabilities
Current liabilities 7,433 7,496 8,037 Total liabilities and 12,730
11,860 12,244 shareholders' equity (unaudited) Consolidated cash
flow statement (in millions of euros) 2009 2008 2007 Cash flows
from operating activities Net income 417 478 476 Income tax 146 196
201 Cost of net financial debt 61 81 73 Capital (gains) losses on
disposals (before tax) (10) (2) (3) Depreciation, amortization and
impairment on 150 146 145 property and equipment and intangible
assets Non-cash expenses on stock options and similar 24 9 22 items
Other non-cash income and expenses 11 8 9 Share in net income of
associates (4) (2) (9) Dividends received from associates 9 10 11
Taxes paid (157) (169) (197) Interest paid (75) (89) (87) Interest
received 16 37 51 Change in working capital requirements (1) 59 12
106 Net cash provided by (used in) operating 647 715 798 activities
(I) Cash flows from investing activities Purchases of property and
equipment and (74) (92) (88) intangible assets Proceeds from sale
of property and equipment and 10 28 11 intangible assets Purchases
of investments and other financial 10 (1) (6) assets, net
Acquisitions of subsidiaries (298) (172) (1,006) Disposals of
subsidiaries 1 - 10 Net cash flows provided by (used in) investing
(351) (237) (1,079) activities (II) Cash flows from financing
activities Capital increase - 1 2 Dividends paid to parent company
shareholders (107) (106) (92) Dividends paid to minority
shareholders of (26) (24) (26) subsidiaries Cash received on new
borrowings 744 482 12 Reimbursement of borrowings (108) (1,128)
(24) Net (purchases)/sales of treasury shares and 5 (174) (162)
equity warrants Cash received on hedging transactions - - 52 Net
cash flows provided by (used in) financing 508 (949) (238)
activities (III) Impact of exchange rate fluctuations (IV) (94) 19
(82) Net change in consolidated cash flows (I + II + 710 (452)
(601) III + IV) Cash and cash equivalents at January 1 867 1,313
1,920 Bank overdrafts at January 1 (30) (24) (30) Net cash and cash
equivalents at beginning of 837 1,289 1,890 period Cash and cash
equivalents at December 31 (Note 1,580 867 1,313 18) Bank
overdrafts at December 31 (Note 22) (33) (30) (24) Net cash and
cash equivalents at end of year 1,547 837 1,289 Net change in cash
and cash equivalents 710 (452) (601) (1) Breakdown of change in
working capital requirements Change in inventory and costs billable
to 29 64 32 clients Change in accounts receivable and other 160
(110) (689) receivables Change in accounts payable, other creditors
and (130) 58 763 provisions Change in working capital requirements
59 12 106 Statement of changes in shareholders' equity (unaudited)
Number of (in millions of euros) Share Additional Reserves
outstanding Capital paid-in and shares capital retained earnings
183,603,878 December 31, 2006 79 2,631 (670) Net income 452 Other
comprehensive income Valuation of available-for-sale investments at
fair value Hedge on net investments Actuarial gains and 8 losses on
defined benefit plans Cumulative translation adjustment Total other
- - (8) comprehensive income Total recognized income - - 460 and
(expenses) for the period 3,678,125 Increase in share 2 111 (48)
capital of Publicis Groupe SA Dividends paid (92) Share-based
compensation 14 (1) Fair value of the stock 65 options included in
the acquisition cost of Digitas Additional interest on (3) ORANE
Effect of changes in scope of consolidation and of commitments to
purchase minority interests (3,681,592) Purchases/sales of (162)
treasury shares 183,600,411 December 31, 2007 81 2,742 (436) Net
income 447 Other comprehensive income Valuation of
available-for-sale investments at fair value Actuarial gains and
(29) losses on defined benefit plans Cumulative translation
adjustment Total other - - (29) comprehensive income Total
recognized income - - 418 and (expenses) for the period 1,633,629
Increase (decrease) in (3) (189) 192 share capital of Publicis
Groupe SA and cancellation of treasury shares Dividends paid (106)
Share-based compensation 8 (1) Additional interest on (7) ORANE
(6,379,739) Purchases/sales of (174) treasury shares 178,854,301
December 31, 2008 78 2,553 (105) Net income 403 Other comprehensive
income Valuation of available-for-sale investments at fair value
Actuarial gains and (3) losses on defined benefit plans Cumulative
translation adjustment Total other - - (3) comprehensive income
Total recognized income - - 400 and (expenses) for the period
1,562,129 Increase in share 1 47 (48) capital of Publicis Groupe SA
Equity component , 49 OCEANE 2014 Dividends paid (107) Share-based
compensation 26 (1) Additional interest on (6) ORANE Effect of
changes in scope of consolidation and of agreements to purchase
minority interests 6,752,338 Purchases/sales of 181 treasury shares
187,168,768 December 31, 2009 79 2,600 390 - TABLE CONTINUED -
Number of (in millions of Cumulative Reva- Total Mino- Total
luation rity share- outstanding euros) translation reserve attrib.
Interest holders shares adjustment Group equity 183,603,878
December 31, 2006 (100) 140 2,080 27 2,107 Net income 452 24 476
Other comprehensive income Valuation of (16) (16) (16)
available-for-sale investments at fair value Hedge on net (1) (1)
(1) investments Actuarial gains 8 8 and losses on defined benefit
plans Cumulative (212) (212) (3) (215) translation adjustment Total
other (213) (16) (221) (3) (224) comprehensive income Total
recognized (213) (16) 231 21 252 income and (expenses) for the
period 3,678,125 Increase in share 65 65 capital of Publicis Groupe
SA Dividends paid (92) (26) (118) Share-based 14 14 compensation
(1) Fair value of the 65 65 stock options included in the
acquisition cost of Digitas Additional (3) (3) interest on ORANE
Effect of changes - 5 5 in scope of consolidation and of
commitments to purchase minority interests (3,681,592)
Purchases/sales of (162) (162) treasury shares 183,600,411 December
31, 2007 (313) 124 2,198 27 2,225 Net income 447 31 478 Other
comprehensive income Valuation of (15) (15) (15) available-for-sale
investments at fair value Actuarial gains (29) (29) and losses on
defined benefit plans Cumulative (2) (2) (3) (5) translation
adjustment Total other (2) (15) (46) (3) (49) comprehensive income
Total recognized (2) (15) 401 28 429 income and (expenses) for the
period 1,633,629 Increase - - (decrease) in share capital of
Publicis Groupe SA and cancellation of treasury shares Dividends
paid (106) (25) (131) Share-based 8 8 compensation (1) Additional
(7) (7) interest on ORANE (6,379,739) Purchases/sales of (174)
(174) treasury shares 178,854,301 December 31, 2008 (315) 109 2,320
30 2,350 Net income 403 14 417 Other comprehensive income Valuation
of 12 12 12 available-for-sale investments at fair value Actuarial
gains (3) (3) and losses on defined benefit plans Cumulative (62)
(62) 3 (59) translation adjustment Total other (62) 12 (53) 3 (50)
comprehensive income Total recognized (62) 12 350 17 367 income and
(expenses) for the period 1,562,129 Increase in share - - capital
of Publicis Groupe SA Equity component , 49 49 OCEANE 2014
Dividends paid (107) (26) (133) Share-based 26 26 compensation (1)
Additional (6) (6) interest on ORANE Effect of changes - 4 4 in
scope of consolidation and of agreements to purchase minority
interests 6,752,338 Purchases/sales of 181 181 treasury shares
187,168,768 December 31, 2009 (377) 121 2,813 25 2,838 (1)
Share-based compensation disclosed net of deferred tax (unaudited)
Appendix 1. Organic Growth calculation (millons of'euros) 2009 2008
revenue 4,704 Currency impact 28 2008 revenue at 2009 exchange rate
(a) 4,732 2009 revenue before impact of acquisitions 4 ,426 (1) (b)
Revenue from acquisitions (1) 98 2009 revenue 4,524 Organic growth
(b) / (a) - 6,5% (1) net of disposals Appendix 2a. Earnings per
share (In thousands of euros except 2009 2008 2007 for share data)
Earnings calculation used for EPS Net income attributable to the a
403 447 452 Group Impact of dilutive instruments: - Savings in
financial expenses 16 20 32 related to the conversion of debt
instruments, net of tax Net income attributable to the b 419 467
484 Group - diluted Number of shares used for the calculation of
EPS Average number of shares in the 196,020,983 196,277,148
200,072,094 company's capital stock Deduct: treasury stock (average
(15,633,664) (16,651,410) (16,946,147) for the year) Shares to be
issued to redeem 21,869,806 22,911,225 24,473,354 the ORANEs
Average number of shares used c 202,257,125 202,536,963 207,599,301
for the calculation Impact of dilutive instruments: (2) -
Restricted stock and dilutive 1,770,247 137,404 2,941,554 stock
options - Warrants - - 167,511 - Shares from the conversion of
16,839,972 18,054,574 28,656,747 bonds Number of shares - diluted d
220,867,344 220,728,941 239,365,113 (in euros) Net earnings per
share a/c 1.99 2.21 2.18 Net earnings per share - b/d 1.90 2.12
2.02 diluted (1) In 2007 and 2008, both the OCEANE 2008s and 2018s
are factored into the calculation; however, the OCEANE 2008s only
appear in the calculation of diluted net income for the period
January 1 to July 17, 2008 as they were redeemed on maturity at the
latter date. (2) Only the restricted stock, stock options and
warrants with a dilutive effect (i.e., whose exercise price is
lower than the average share price for the year) enter into the
calculation. (3) Redemption of the OCEANE 2008 in July 2008
automatically led to the elimination of 23,172,413 potentially
dilutive shares. Conversely, the issue in June 2009 of a new OCEANE
maturing in 2014 involved the creation of 25,761,647 potentially
dilutive shares. (unaudited) Appendix 2b. Headline earnings per
share (In thousands of euros except 2009 2008 2007 for share data)
Net income used for the calculation of headline (1) earnings per
share Net income attributable to the 403 447 452 Group Items
excluded: - Amortization of intangibles 18 18 18 from acquisitions,
net of tax - Impairment, net of tax 27 11 4 - Net capital gains
(losses) on (6) (5) - disposal of land, buildings and long-term
real estate leases - Deferred tax asset from the (23) - - OCEANE
2014S 2 Adjusted net income e 419 471 474 attributable to the Group
Impact of dilutive instruments: - Savings in financial expenses 16
20 32 related to the conversion of debt instruments, net of tax
Adjusted net income f 435 491 506 attributable to the Group -
diluted Number of shares used for the calculation of EPS Average
number of shares in the 196,020,983 196,277,148 200,072,094
company's capital stock Deduct: treasury stock (average
(15,633,664) (16,651,410) (16,946,147) for the year) Shares to be
issued to redeem 21,869,806 22,911,225 24,473,354 the ORANEs
Average number of shares used c 202,257,125 202,536,963 207,599,301
for the calculation Impact of dilutive instruments: - Restricted
stock and dilutive 1,770,247 137,404 2,941,554 stock options -
Warrants - - 167,511 - Shares resulting from the 16,839,972
18,054,574 28,656,747 conversion of bonds Number of shares -
diluted d 220,867,344 220,728,941 239,365,113 (in euros) Headline
earnings per share (1) e/c 2.07 2.33 2.28 Earnings per share -
diluted f/d 1.97 2.22 2.11 (1) EPS before amortization of
intangibles arising from acquisitions, impairment, capital gains
(losses) on disposal of land and buildings, and deferred tax asset
on the OCEANE 2014S. (2) Effect of the deferred tax asset
recognized in an amount equal to the deferred tax liability
recognized on the equity portion of the OCEANE 2014S. In January
2010, the company purchased 617,985 OCEANE 2018 bonds in the
partial exercise of a put, thus eliminating an equivalent number of
potentially dilutive shares. DATASOURCE: Publicis Groupe Services
CONTACT: CONTACTS Publicis Groupe: Peggy Nahmany, Corporate
Communications: +33-(0)1-44-43-72-83, ; Martine Hue, Investor
Relations: +33(0)1-44-43-65-00,
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