PUBLICIS GROUPE

INVESTOR DAY
London | March 20th, 2018
BONJOUR
BIENVENUE
MERCI
 HOW WE ARE
APPROACHING THIS DAY?

3
… with some nerves …
 “Tougher environment for ad agencies” “Suffer from low growth for core clients and
the of zero- based budgeting tactics ”

“Investor concerns on their relevance in the

marketing value chain.” “Advertisers are challenging the legacy AOR model”

BECAUSE OUR INDUSTRY

IS BEING CHALLENGED

“The vast majority of investors continue to see

“Agencies, holding companies struggle to come up
many structural problems with agencies”
with integrated solutions”

“Competition from consultancies set to heat up”

“Insourcing to accelerate”
 TODAY’S PURPOSE
SHOW OUR REALITY
 WE HAVE
THE ASSETS
 WE HAVE THE VISION
TO BE THE MARKET LEADER IN MARKETING
& BUSINESS TRANSFORMATION
 WE HAVE

THE ORGANISATION
 WE HAVE
A FUTURE-FACING
MANAGEMENT TEAM
 TO SHIFT

FROM A TO A
COMMUNICATIONS TRANSFORMATION
PARTNER PARTNER
 AND TURN OUR
INDUSTRY CHALLENGES
INTO OPPORTUNITIES

12
 TO DELIVER

ACCELERATED
IMPROVED EPS
ORGANIC GROWTH MARGIN EXPANSION
GROWTH & HIGHER
TO REACH + 30-50bps/year
DIVIDEND
+4% in 2020
 SPRINT TO
THE FUTURE

A SPRINT TO DELIVER WHAT WILL

MAKE OUR CLIENTS WIN IN THE FUTURE
 NOW LET’S
START AT THE END

15
WHAT WE WOULD LIKE YOU TO
TAKE AWAY
OUR OFFER IS EXACTLY
WHAT OUR CLIENTS NEED
TO WIN IN THE FUTURE

17
 ONE-TO-ONE
CONSUMER ENGAGEMENT AT SCALE

CREATING PERSONALISED RELATIONSHIPS TO DELIVER:

The right To the right At the right Through the At every point En masse
message person time right of the
channel consumer
journey
 IT’S WHAT OUR CLIENTS WANT TODAY
ONE-TO-ONE CONSUMER ENGAGEMENT AT SCALE

Mass one-to-one marketing is coming. We have 5 million members and our engagement with each
one, wherever and whenever they want, is resulting in
Marc Pritchard, Global Marketing and Brand Building Officer, P&G
higher sales

Fran Horowitz-Bonadies, CEO Abercrombie

The world of financial services should be about loving

Marketing used to be about creating a myth and
your provider’s experience. One-to-One personalization
selling it. It is now about finding a truth and
is the key to earn that love.
sharing it through engagement.
Anne Boden, CEO Starling Bank
Marc Mathieu, Chief Marketing Officer Samsung Electronics North America

Starbucks is now delivering true one-to-one end-to-end personalization. The only number that matters is
‘One’. One cup, One customer, One experience at a time.
Howard Schultz, Founder & Executive Chairman, Starbucks
 WE HAVE THREE STRATEGIC
GAME-CHANGERS TO DELIVER IT

TECHNOLOGY &
DATA CONTENT
CONSULTING
 WE
WE KNOW HOW MAKETHREE
TOHAVE STRATEGIC
CONSUMER ENGAGEMENT RIGHT:
PUBLICIS
GAME PEOPLECLOUD
CHANGERS TO DELIVER IT

TECHNOLOGY &
DATA CONTENT
CONSULTING

21
WE KNOW HOWWE MAKE THREE
TOHAVE STRATEGIC
CONSUMER ENGAGEMENT MAGIC:
DYNAMIC
GAME CREATIVITY
CHANGERS TO DELIVER IT

DATA: TECHNOLOGY &

PUBLICIS CONTENT
CONSULTING
PEOPLECLOUD

22
 WE
WE KNOW HOW MAKETHREE
TOHAVE STRATEGIC
CONSUMER ENGAGEMENT WORK:
DIGITAL
GAMEBUSINESS
CHANGERSTRANSFORMATION
TO DELIVER IT

D ATA EXPERIENCE
DATA AT RADICAL CUSTOMER-
THE CORE
DATA: DBT
CONTENT:
CENTRICITY

PUBLICIS DYNAMIC TECHNOLOGY &

PEOPLECLOUD CREATIVITY CONSULTING

TECHNOLOGY
THE CONNECTED
DIGITAL ENTERPRISE

23
 EXTRACT FROM THE PACK

TECHNOLOGY
DATA CONTENT &
CONSULTING

PUBLICIS GROUPE

TECH COMPANIES AD AGENCIES CONSULTING FIRMS

Brand Safety Cultural Barriers

Transparency
 EVEN MORE IMPORTANTLY
THEY PUT US AT THE CORE OF OUR
CLIENTS’ NEEDS AND TRANSFORM
OUR RELATIONSHIP
 AND ACCELERATE
OUR FUTURE GROWTH
WE ARE ON A SPRINT
TO ACCELERATE OUR
TRANSFORMATION
THROUGH 6 CONCRETE
ACTIONS
 1. PUTTING OUR
CLIENTS AT THE CENTER UNDER:

1 1 1
LEADERSHIP P&L ROOF

Today 2020

35 Global Client Leaders 100 Global Client Leaders

1/3 of our revenue 50% of our revenue
 2. BREAKING THE SILOS
AT THE COUNTRY LEVEL

1 1 1 1
COUNTRY WAY TO GO
COMEX P&L
LEADER TO MARKET

Today 2020

36 % of revenue
France, UK, Italy, 100% of revenue
APAC, DACH, Africa, Publicis One
 3. SCALING OUR
STRATEGIC GAME CHANGERS

DYNAMIC DIGITAL BUSINESS

DATA CREATIVE TRANSFORMATION
3,500 experts under one Create 6 Centres of
Organise our capabilities
platform Excellence
into Industry Practices

Today 2020

Revenue contribution
Revenue contribution on top 100 clients: 30%
on top 100 clients: 16%
Share of total growth: 70%
 4. BUILDING
ONE DELIVERY MODEL

India Colombia Costa Rica Mauritius

Technology Technology

Cloud/Dev ops Analytics

Data/Analytics/AI Print & Digital Production

Print & Digital Production

HEADCOUNT 8,000 700

Today 2020

HC: 8,700 HC: 13,000

 5. REINVENTING THE WAY WE WORK THROUGH
MARCEL

Connecting our 80,000

employees to learn more, share
more and create more

First public presentation 24th May 2018 at Viva Tech

Today 2020

90% of our people

Building the foundations
fully connected
 6. INVESTING IN
OUR FUTURE

INVESTMENTS OVER 2018 - 2020

Bolt-on acquisitions:
TALENTS : € 300m CAPEX : € 100m
€300m - €500m per year

Data specialists, data scientists Marcel Data

Consulting Talent Publicis People Cloud Dynamic Creativity
Dynamic Creative Content Talent Automation Digital Business Transformation
Hiring, training & reskilling

DISCIPLINED & FOCUSED

WE WILL DELIVER
GREATER SHAREHOLDER
VALUE WHILE WE
TRANSFORM
 OUR
ADDRESSABLE MARKET

DATA DIGITAL BUSINESS

ADVERTISING
$100 billion $600 billion TRANSFORMATION
$400 billion
 ORGANIC GROWTH

ACCELERATED ORGANIC GROWTH

TO REACH +4% IN 2020

+ € 650m direct revenue from our Strategic Game Changers

+ € 600m from cross-selling and new business

- € 350m attrition on mature business

+ € 900m INCREMENTAL REVENUE BY 2020

 MARGIN

MARGIN IMPROVEMENT OF 30 TO 50 BPS PER YEAR

Rightsizing mature business  € 200m

Capacity and planning  € 50m
G&A excl. real estate  € 130m
Real estate  € 70m

ACHIEVE € 450m OF COST REDUCTION BY 2020

 GREATER SHAREHOLDER RETURN

ACCELERATED 5-10%
HIGHER DIVIDEND
EPS GROWTH
WITH PAYOUT RATIO
PER YEAR
circa. 45%
FROM 2018-2020
 SPRINT TO THE FUTURE

BE OUR CLIENTS’ INDISPENSABLE PARTNER

IN THEIR TRANSFORMATION

SHIFT FROM A HOLDING COMPANY

TO A PLATFORM

LEAD THE PACK IN TERMS OF

FINANCIAL PERFORMANCE