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Publicis Groupe: Q1 2015 Revenue


April 21, 2015


Q1 2015 Revenue

| Q1 2015 € 2,103 million % Change: |
| |
| |
| +31.7% |
| Q1 2014 € 1,597 million |
| Organic growth: +0.9% |

Maurice Lévy, Chairman and CEO of Publicis Groupe:

"Our revenue is up to slightly over 30%, partly due to the positive impact of
exchange rates, and partly to the inclusion of Sapient since completing the
acquisition. As we'll continue to see, this is one of the important
milestones of the Groupe's transformation.

We expected organic growth to be slightly down this quarter, but, on the
contrary, it is up almost 1%. This isn't yet the growth rate we expect to
see out of Publicis Groupe, but is nonetheless an encouraging return to

The main event of this early part of the year has been the completion of the
Sapient acquisition, an event that gives Publicis Groupe a new strategic
dimension while excelling the Groupe's transformation. The integration
process is already underway and the prevailing spirit is excellent.

Today's sudden, radical changes in lifestyle and consumption in an
unprecedentedly digital world leave all economic players facing a new set of
challenges. The blurring of boundaries can be found everywhere - in
longstanding industry sectors and even in the shift to omni-channel - both
have brought the advent of new competitors forcing companies to transform
themselves at the risk of "uberisation". They have to rethink their
processes, their practice, their marketing, their customer relations and,
more fundamentally, their business model.

In this new environment, I think it would be fair to say that our Groupe is
ahead of the curve. With the acquisition of Sapient, Publicis Groupe has
become the only global group present all along the value chain - from
consulting to marketing, from communications to commerce - brought to life
through an outstanding expertise in the most high-performing technologies. We
are working on commercial propositions that should enable us to achieve all
our medium-term goals.

For now, we are gradually implementing our growth program. The second quarter
will be better than the first, albeit with modest growth, as announced, that
of the Groupe should be considerably stronger in the second half of the

I - Revenue

Publicis Groupe's consolidated revenue for the first quarter of 2015 was 2,103
million euro, a 31.7% increase on 1,597 million euro for the corresponding
period in 2014.

Exchange rates had a 215 million euro positive impact on revenue, i.e. 13.5%
of revenue in Q1 2014, as a result of over 50% of the Groupe's revenue being
in dollars and sterling, and due to the weakening of the euro against these
two currencies by 21.7% and 11.4% respectively. Expressed in dollars, the
Groupe's revenue in Q1 was 2,366 million dollars (+8.2%). When exchange
rates are factored out, revenue growth stands at 16.1%.

Acquisitions contributed 274 million euro or 17.2% of revenue. The completion
of the Sapient acquisition is one of the highlights of the first quarter.
This transaction is an important milestone in the transformation of Publicis
Groupe, making it the undisputed leader of the digital era. Publicis Groupe
can now establish itself more rapidly as the leader in corporate digital
transformation, at the crossroads of marketing, communications, omni-channel
commerce and technology.

Organic growth was +0.9%.
Though global economic growth has seen contrasting trends since the start of
the year, Publicis Groupe has achieved growth notably as a result of its
strong presence in digital which has become its main activity. Digital
activities progressed by +4.7% and now account for 50.2% of total revenue.
Healthcare also performed well.

1. Revenue by region

Though Europe has benefitted from a combination of positive factors (the
strengthening of the dollar, the fall in oil prices, the ECB's monetary
policy), the growth outlook remains limited by persistent unemployment. The
US economy is still the world's bastion of high growth and continued low
interest rates should go on shoring up growth throughout 2015. In the
emerging markets, the economic environment remained fragile in the first
quarter, particularly in Russia and Brazil due to the sharp increases in
interest rates to contain the weakening of the ruble and real.
Q1 2015 revenue by region

| EUR million Revenue Organic Reported |
| Q1 2015 Q1 2014 growth growth |
| Europe(1) 575 474 +1.7% +21.3% |
| North America 1,152 795 +0.8% +44.9% |
| BRIC+MISSAT(2) 215 190 -2.6% +13.2% |
| Rest of the world 161 138 +4.0% +16.7% |
| Total 2,103 1,597 +0.9% +31.7% |
(1) Europe excluding Russia and Turkey
(2) BRIC: Brazil, Russia, India, China
MISSAT: Mexico, Indonesia, Singapore, South Africa, Turkey

Europe (excluding Russia and Turkey)
saw its revenue progress by 21.3%. When acquisitions and the impact of
exchange rates are factored out, organic growth stands at 1.7%. France and
Germany posted 4.2% and 1.8% growth respectively. Conversely, though the UK
market continued to be vibrant, Publicis has been experiencing challenges in
several of its businesses and recorded negative growth (-4.2%) in Q1 2015.
The southern European countries returned to positive growth (+2.7%), though
this growth was achieved against a weak basis of comparison (especially in
Greece). Digital posted strong growth (+7.7%).

North America
saw its revenue grow by 44.9%. When acquisitions and the impact of exchange
rates are factored out, organic growth stands at 0.8%, a modest increase
stemming from digital activities where growth was weak too (+1.3%).

The BRIC and MISSAT countries
recorded negative organic growth of -2.6% (+13.2% reported growth). In
difficult economic environments, revenue fell sharply in both Russia and
Brazil (-10%). China dropped 1% due to a sluggish luxury goods sector.
India continues on the road to recovery with growth of +5.7%. Mention should
also be made of the decline in South Africa (-5.6%) following on the trend
observed in 2014.

The Rest of the world
recorded growth of 4%.

2. Revenue growth by activity

Publicis Groupe's growth has been driven by its strong presence in digital.
The table below shows the good performance of digital activities (+4.7%),
particularly in Europe and the high-growth countries, which offsets the
decline in analog (-1.8%).

| Europe(1) North America BRIC + MISSAT(2) Rest of Total |
| |
| the world |
| Digital +7.7% +1.3% +24.8% +20.5% +4.7% |
| Analog -1.5% +0.3% -8.4% -0.9% -1.8% |
| Total +1.7% +0.8% -2.6% +4.0% +0.9% |

(1) Europe excluding Russia and Turkey
(2) BRIC: Brazil, Russia, India, China
MISSAT: Mexico, Indonesia, Singapore, South Africa, Turkey

Digital has become the Groupe's main activity and now accounts for 50.2% of
total revenue, thus confirming the raising of the objective to 60% by 2018.

II - Cost control

With a view to improving its operating margin in the medium-term, Publicis
Groupe is integrating Sapient while continuing to invest in (regionalization
of its Shared Services Centers, production platforms, ERP) and simplify its

III - External growth, new launch, financial transactions

1. Acquisitions

- Expicient Inc.,
a leading global omni-channel services firm with significant expertise in
inventory and order management systems (OMS).

- Epic Communications,
South Africa's leading independent integrated strategic communications agency.

- Relaxnews
is a press agency (member of Fédération Française des Agences de Presse and of
the International Press and Telecom Council) with global expertise in
consulting, production and management of content for the digital
transformation of media and firms (exclusive negotiations in process).

- Monkees,
the agency of reference in France for digital marketing and social media.

2. Blue 449 launch

ZenithOptimedia has launched a new global media network to drive business
growth and further develop new and innovative approaches to communications.
CalledBlue 449
, the new network has its headquarters in London at the offices of Walker
Media, which has rebranded to become the founding office of ZenithOptimedia's
new global agency.

Blue 449 will have 17 city hubs by the end of this year and will operate
collaboratively with the other ZenithOptimedia brands: Zenith, Optimedia,
Performics, and Newcast. The new network will also benefit from access to the
extensive range of services within the Publicis Groupe and VivaKi, in a new
framework for clients called 'Open Source'.

The launch of Blue 449 follows the acquisition of Walker Media in 2014 by
Publicis Groupe.

Blue 449 will be led by Global Chairman, Sebastien Danet, and Global Managing
Director, James Shoreland. Sebastien Danet is a Global Managing Partner at
ZenithOptimedia and Chairman VivaKi France. James Shoreland has been promoted
from EVP, Director Corporate Development, ZenithOptimedia US to the new MD
position at Blue 449.

3. Finance

- Share buyback

On March 17, 2015, before trading opened on the Paris stock market, Publicis
Groupe purchased 2,406,873 of its own shares in a block transaction from the
Badinter family for a total consideration of 175.8 million euro, i.e. 73.03
euro per share. This transaction is part of a broader framework consisting
of the share buyback program authorized by the AGM of May 28, 2014 and the
2022 Orane bond early redemption approved by the Supervisory Board at its
meeting of September 15, 2014 and announced on September 16, 2014. The early
redemption will be subject to approval by the shareholders at the Groupe's
forthcoming AGM on May 27, 2015.

The transaction was carried out at a discount of 2% to the weighted average
share price of the five previous days' tradin...

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