FULL YEAR RESULTS 2019 6 February 2020 DISCLAIMER Certain - PowerPoint PPT Presentation

FULL YEAR RESULTS 2019 6 February 2020

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 from those projected. These forward-looking statements and forecasts are presented at the date of this document and, other than as required by applicable law, Publicis Groupe does not assume any obligation to update them to reflect new information or events or for any other reason. Publicis Groupe urges you to carefully consider the risk factors that may affect its business, as set out in the Registration Document filed with the French Autorité des Marchés Financiers (AMF) and which is available on the website of Publicis Groupe (www.publicisgroupe.com), including an unfavorable economic climate, an extremely competitive market sector, the possibility that our clients could seek to terminate their contracts with us at short notice, the fact that a substantial part of the Group’s revenue is derived from certain key clients, conflicts of interest between advertisers active in the same sector, the Group’s dependence on its directors and employees, laws and regulations which apply to the Group’s business, legal action brought against the Group based on allegations that certain of the Group’s commercials are deceptive or misleading, the strategy of growing through acquisitions, the depreciation of goodwill and assets listed on the Group’s balance sheet, the Group’s presence in emerging markets, exposure to liquidity risk, a drop in the Group’s credit rating and exposure to the risks of financial markets. 1

FULL 2019 2020 YEAR 2019 FINANCIAL PRIORITIES Q&A HIGHLIGHTS RESULTS & OUTLOOK 2

1 . A P IVO T AL YE AR W IT H T H E ACQ U IS IT IO N O F E P S ILO N Integration largely completed, with Epsilon core activities in building, enriching and activating data connected with every Groupe operation. Epsilon Agency merged with Leo Burnett. CJ Affiliate under strategic review Decisive step to Immediate impact on existing client relationships and on H2 new succeed in a market business momentum increasingly driven by personalization at scale Revenue’s shift towards data and tech, now representing nearly 30% of Groupe net revenue Publicis Groupe FY reported growth of 9.3% including Epsilon, with 16.2% in H2 3

2 . O RGANIC GRO WT H IM P ACT ED BY WELL - IDENT IF IED CHALLENGES Severely impacted by: Full year organic growth at • Attrition on traditional business representing c. 200bps impact on FY organic -2.3%, in line with growth indications communicated • Media losses from 2018 • Impact of the repositioning of Publicis Sapient in the U.S. to full DBT in October Good performance of Game Changers (+18% organic) and New Business, not sufficient to offset these headwinds • North America at -3.5% Geographical performance • reflecting those challenges Europe at -2.0% with resilient UK and France despite high comparables • Asia at +0.8% Q4 in line with latest indications Q4 organic growth at -4.5% Headwinds will continue to have an impact, particularly in the first half 2020 4

3 . CO NT INU ED S T RO NG F INANCIAL P ERF ORMANCE 17.3% operating margin rate (1) (+30bps vs 2018) • Strong investment in talents of c.€100M • Ongoing positive impact of our structure simplification and higher- value services Robust financial ratios while reinvesting in Headline EPS growing by +8.2% (2) , reaching €5.02 the business and maintaining a high Proposed dividend increasing by +8.5% at €2.30 per share (to be level of cash flow proposed at next AGM) generation Nearly €1.3bn Free cash flow (3) , confirming deleveraging in four years (1) Before transaction costs related to Epsilon acquisition (2) Headline EPS fully diluted at constant exchange rates, excluding BEAT Tax. (3) Before change in working capital requirements 5

4 . #1 IN NEW BU S INES S RANKING IN 2019 New clients selecting the Groupe Net reported wins 2019, estimated billings $bn (1) Existing clients with extended assignments 2.2 1.1 Existing clients with consolidation Comp. 2 Comp. 3 Comp. 1 -0.1 -0.6 (1) Source: JP Morgan estimates 6

FULL 2019 2020 YEAR 2019 FINANCIAL PRIORITIES Q&A HIGHLIGHTS RESULTS & OUTLOOK 7

NET REVENUE (EUR million) Q1 Q2 Q3 Q4 FY 2019 net revenue 2,118 2,234 2,577 2,871 9,800 2018 net revenue 2,082 2,198 2,197 2,492 8,969 Reported growth +1.7% +1.6% +17.3% +15.2% +9.3% Organic growth -1.8% (1) +0.1% -2.7% -4.5% -2.3% (1) -1.6% Excluding PHS 8

Q4 NET REVENUE BY GEOGRAPHY 2019 Organic Q4 2019 Q4 2018 vs. 2018 growth (EUR million) Europe 728 753 -3.3% -7.0% North America 1,639 1,260 +30.1% -4.2% Asia Pacific 302 277 +9.0% -2.3% Latin America 107 110 -2.7% +0.9% Middle East Africa 95 92 +3.3% -1.2% Total 2,871 2,492 +15.2% -4.5% 9

FY NET REVENUE BY GEOGRAPHY 2019 Organic 2019 2018 vs. 2018 growth (EUR million) Europe 2,630 2,622 +0.3% -2.0% North America 5,516 4,795 +15.0% -3.5% Asia Pacific 1,006 924 +8.9% +0.8% Latin America 326 347 -6.1% -4.9% Middle East Africa 322 281 +14.6% +10.0% Total 9,800 8,969 +9.3% -2.3% 10

2019 NET REVENUE ORGANIC GROWTH BY COUNTRY > +10% India, Poland, United Arab Emirates +5% to +10% Canada, Malaysia, Thailand 0% to +5% Israel, Italy, Russia, South Africa, Spain Australia, Brazil, China, France, Germany, Indonesia, Japan, < 0% South Korea, United Kingdom, United States 11

CONSOLIDATED INCOME STATEMENT (EUR million) 2019 2018 Revenue 11,001 9,951 Net revenue 9,800 8,969 EBITDA (1) 2,245 2,049 Operating income 1,659 1,523 Operating income excluding Epsilon transaction costs 1,699 1,523 Non-current income and expenses (1) (2) Net financial expenses (106) (80) Income taxes (396) (344) Associates (5) (4) Minority interests (3) (11) Headline Group Net Income (1) 1,188 1,082 Epsilon transaction costs, net of tax (30) - Amortization of intangibles arising on acquisitions, net of tax (153) (55) Impairment / Real estate consolidation charge, net of tax (163) (103) Main capital gains (losses) / change in fair value of financial assets, net of tax 21 (10) US tax reform impact - 18 Revaluation of earn-out (22) (13) Group Net Income 841 919 (1) See definition in Supplemental Information 12

OPERATING MARGIN FY 2019 FY 2018 (EUR million) Net revenue 9,800 8,969 Personnel costs (5,957) (5,643) Restructuring costs (116) (104) Other operating expenses (1,586) (1,278) Depreciation (482) (421) 1,659 Operating margin 1,523 16.9% as a % of Net revenue 17.0% 1,699 Operating margin excl. Epsilon transaction costs 1,523 17.3% as a % of Net revenue 17.0% 13

2019 - CHANGE IN OPERATING MARGIN (1) AS A % OF NET REVENUE -20bps 17.5% +70bps -10bps +50bps -120bps 17.4% -20bps 17.3% +10bps 17.0% +30bps +40bps 2018 Reported 2018 At 2019 2018 At 2019 2019 FX & Structure Restructuring Investment Impact Of Occupancy Variable Other Depreciation Epsilon Impact FX & Perimeter Comparable Reported (1) Effect Excl. In Game Simplification Costs Compensation Operating Restructuring Epsilon Changers expenses Charges And Media & Creative (1) Operating margin rate excluding Epsilon transaction costs (€40 m) 14

NET FINANCIAL INCOME (EXPENSE) (EUR million) 2019 2018 BNPP loan, 2021 & 2024 Eurobond, 2023 Eurobond (Sapient acquisition funding) (56) (58) Citi loan, 2025, 2028 & 2031 Eurobond (Epsilon acquisition funding) (58) - Other financial expense net of interest income 95 52 Discount on long term debt (6) (5) Interest on net financial debt (25) (11) Interest on lease liabilities (70) (58) Foreign exchange gain (loss) (1) (4) Other financial expenses (1) (10) (7) Headline Net financial expenses (2) (106) (80) Change in fair value of financial instruments 15 9 Net financial expenses (2) (91) (71) (1) Includes provisions on financial assets, dividends outside the Group and finance costs on long term provisions (2) Excludes earn-out revaluation 15

INCOME TAX AND EFFECTIVE TAX RATE 2019 2018 (EUR million) Reported income taxes 305 285 One-off impacts of US tax reform (1) - 18 Adjusted income taxes 305 303 Effective tax rate 25.0% 24.0% Reversal in income tax on amortization of intangibles arising from acquisitions 51 14 Reversal in income tax on impairment 46 28 Reversal in income tax on other items (6) (1) Headline income taxes (2) 396 344 (1) Toll charge on reserves accumulated by subsidiaries (2) No tax effect on main capital loss 16

HEADLINE EARNINGS PER SHARE, DILUTED (1) 5.02€ +8.9% 4.61€ +8.2% At constant currency & excluding Beat tax 2018 2019 (1) See definition in Supplemental Information 17

DIVIDEND €2.30 €2.12 +8.5% €2.00 +6.0% 45.8% 44.9% Dividend 44.4% pay-out (1) 2019 2017 2018 2019 dividend to be submitted to May 27, 2020 AGM’s approval (1) See definition in Supplemental Information 18