PUBLICIS GROUPE
INVESTOR DAY
London | March 20th, 2018
BONJOUR
BIENVENUE
MERCI
HOW WE ARE
APPROACHING THIS DAY?
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… 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
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WE KNOW HOWWE MAKE THREE
TOHAVE STRATEGIC
CONSUMER ENGAGEMENT MAGIC:
DYNAMIC
GAME CREATIVITY
CHANGERS TO DELIVER IT
DATA: TECHNOLOGY &
PUBLICIS CONTENT
CONSULTING
PEOPLECLOUD
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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
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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