Te a m
F R A N C E
Global IRC 2011
A MEDIA ADVERTISING SUCCESS STORY
WINNING RECORD, STRONG FINANCIALS
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
2
A MEDIA ADVERTISING SUCCESS STORY
WINNING RECORD, STRONG FINANCIALS
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
LEGACY & CONQUEST
1926
1957
1975
1996
1999
2008
Publicis’ birth
NYC
Champs-Elysees Headquarters
Maurice Lévy becomes CEO
Adding a landmark network
Digital boost
Balanced Activities
North America: 48% of FY10 revenue. Source: Company Data.
Specialised Agencies* Traditional Advertising
20% 47%
33%
Media Buying *Including 100% of Digital.
Balanced Portfolio
9%
14% 37%
14%
Consumer Goods Healthcare Automotive Tech Media Telecom
13% 13%
Financials Others*
*Retail, Luxury, Energy, Leisure.
3
A MEDIA ADVERTISING SUCCESS STORY
PUB.PA
WINNING RECORD, STRONG FINANCIALS
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
€47.5 Target Price in Jan. 2012
BUY €47.5 In January 2012.
4
A MEDIA ADVERTISING SUCCESS STORY
WINNING RECORD, STRONG FINANCIALS
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
Group-wide Cost Monitoring supports Expansion Strategy A selective and targeted Investment Policy…
Digital & Fast-Growing Economies
Tax, IT, Human Resources…
EXPAND
CONTROL
…supported by an efficient ResourceAllocation Plan…
EFFICIENCY + EXPANSION
…and attracts new clients to grow.
GAIN
CREATE
New Businesses & Market Shares
Audience, Campaigns, Consultancy
…that delivers innovative HighAdded-Value Products…
5
A MEDIA ADVERTISING SUCCESS STORY
WINNING RECORD, STRONG FINANCIALS
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
Best-in-Class Profitability WPP
Omnicom
Publicis
InterPublic
Sales
14,330
12,372
7,156
6,413
EBIT Margin
10.6%
11.6%
15.2%
8.6%
EBIT
1,517
1,441
1,086
552
$US Mln
Sources: Company Data, Deutsche Bank Estimates.
6
A MEDIA ADVERTISING SUCCESS STORY Major Targets: BRIC
A COMPETITIVE VALUE STOCK
WINNING RECORD, STRONG FINANCIALS
AN UNDERVALUED UPSIDE POTENTIAL
Publicis to Capture Growth from Fast-Growing Economies BRIC Adspend Forecasts 2016E 100
2010
87,5
90
2016E
Most Active Media TV & Internet to gain scale every year
Greater growth potential for Digital.
$US Billions
80 70 60 50 40 30
22,9
22,8
20
10,5
10
19,6 4,5
7,9
15,3
0
Local Key Media:
China
Brazil
India
Russia
TV, Internet.
TV, Internet.
TV, Newspapers.
TV, Internet.
Sources: Magna Forecasts, Bernstein Research.
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A MEDIA ADVERTISING SUCCESS STORY
WINNING RECORD, STRONG FINANCIALS
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
Building Long-Term Leadership in Digital Peer-Group Digital Staff Allocation WPP
Electronic Technology Instant Capture
Digital Ad
Digital Staff 17,438 Individual Preferences
Consumer Interaction
Total Staff 105,318
16.6%
Omnicom Publicis InterPublic 63,000
45,402
40,000
8,769
12,681
8,153
13.9%
27.9%
20.4%
Sources: Company Data, RECMA 2010.
8
A MEDIA ADVERTISING SUCCESS STORY
WINNING RECORD, STRONG FINANCIALS
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
9
A MEDIA ADVERTISING SUCCESS STORY Sound Use of a Steady Cash Generation
WINNING RECORD, STRONG FINANCIALS
GENERATING CASH…
AN UNDERVALUED UPSIDE POTENTIAL
…WHAT FOR?
900
€ Millions
FY 2010
FY 2009
Free Cash Flow
933
583
Acquisitions
(123)
(193)
Earn/Buy Outs
(46)
(94)
500
Dividends Paid
(128)
(133)
400
Share Buy-Back
(198)
5
300
Non-Cash Impact on Net Debt
61
115
Reduction of Net Debt
499
283
800 700 600 € Millions
A COMPETITIVE VALUE STOCK
+23%
200 100
Source: Company Data.
0
2009
2010
2011E
Source: Internal Projections.
2012E
10
A MEDIA ADVERTISING SUCCESS STORY
WINNING RECORD, STRONG FINANCIALS
…WHILE REDUCING DEBT 2008
2009
A COMPETITIVE VALUE STOCK
AN UNDERVALUED UPSIDE POTENTIAL
GEARING DROPPED 2010
96% in 2003
0 -200 -400
67% in 2010
-600
-621 -800
-892
-1000 -1200
Average net debt
-1063 Source: Company Data.
Net Debt/EBITDA FY2009 1.20x FY2010 0.63x Objective
