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    PARIS, July 29, 2010 /PRNewswire-FirstCall/ --

    Second quarter 2010
    (EUR million)

    - Revenue                                1,376 (+21.3%)
    - Organic growth                                 +7.1%

     First half 2010
    (EUR million)

    - Revenue                                2,538 (+14.9%)
    - Organic growth                                 +5.3%
    - Operating margin                         369 (+28.6%)
    - Operating margin rate                          14.5%
    - Net income (Group share)                 213 (+27.5%)
    - Free Cash Flow (1)                       277   (+42%)
    - Headline diluted EPS (2)             1.00 euro (+12%)
    - Debt/equity ratio 0.20

    (1) Before changes in WCR

(2) After elimination of impairment, amortization of intangibles arising on acquisitions and the tax credit arising on the deferred tax liability on the Oceane 2014 convertible bond.

Maurice Levy, Chairman and Chief Executive Officer of Publicis Groupe declares:

"With organic growth of 7.1% for the second quarter of 2010 and 5.3% for the half-year, an operating margin of 14.5% and net income up by 27.5%, Publicis Groupe has once again given proof of its energy and ability to create value, even in the aftermath of the worst global economic crisis in many years.

This growth is the result of a strategy that has been effectively executed over a number of years. We were quick to take the digital route, gaining a decisive lead over our competitors and providing clients with the best and most innovative solutions for the new landscape being shaped by the explosion of digital technology.

We also opted for expansion in emerging markets. The economic crisis may have slowed the pace of their growth, but ZenithOptimedia's latest estimates for 2011 and 2012 bode well for strong growth.

The challenges our clients face demand from us greater inventiveness, creativity and innovation, and relentless operational efforts to ensure that they win whatever the circumstances. I would like to thank them for their confidence, and to pay tribute to the hard work of all our teams who have performed wonders within the constraints of strict cost controls, enabling Publicis Groupe to emerge stronger than ever from the crisis.

Tight cost containment since end 2008 and strong growth in revenue have boosted operating margin to an impressive 14.5%, despite the fact that Razorfish is still in the integration phase with a margin that, while improving, is still well below average for the Groupe.

Without lapsing into the euphoria that these half-year results for our Groupe might warrant, I remain firmly convinced that Publicis Groupe will succeed in outperforming the market in terms of both growth and margin."

    At its meeting on July 28, 2010, chaired by Mrs. Elisabeth Badinter, the
Supervisory Board of Publicis Groupe examined the first half results for 2010
presented by Mr. Maurice Levy, Chairman and Chief Executive Officer of
Publicis Groupe.
    Key figures

    EUR million, except for             1st half 2010 1st half 2009 2010/2009
    percentages and
    per-share data (EUR)

    Income statement data
    Revenue                                     2,538         2,209     14.9%
    Operating margin before
    depreciation and amortization                 422           333     26.7%
    As % of revenue                              16.6%         15.1%
    Operating margin                              369           287     28.6%
    As % of revenue                              14.5%         13.0%
    Operating income                              353           257     37.4%
    Net income attributable to Publicis
    Groupe                                        213           167     27.5%

    Earnings per share (1)                       1.04          0.83     25.3%

    Diluted earnings per share (2)               0.95          0.82     15.8%

    Balance sheet data                  June 30, 2010 June 30, 2009
    Total assets                               14,458        11,408
    Shareholders' equity                        3,090         2,418

(1) The average number of shares used to calculate earnings per share was 204.5 million for 1st Half 2010 and 200.8 million for 1st Half 2009.

(2) The average number of shares used to calculate diluted earnings per share was 237.1 million for 1st Half 2010 and 206.3 million for 1st Half 2009. This includes stock options, free shares, equity warrants and convertible bonds with a dilutive effect on EPS. For the first six months of 2010, the instruments that diluted EPS were the Oceane convertible bonds, equity warrants, free shares and certain tranches of stock options with a strike price below the average price over the period.

Analysis of key figures

I. First half 2010 activity

The global economy rallied over the first half of 2010. After forecasting a 0.9% increase in 2010 global advertising expenditure in its December 2009 forecast, ZenithOptimedia upgraded its forecast in April this year to 2.2% growth and upped its latest estimate yet again, on July 19, to 3.5%. This steady improvement in growth forecasts is most encouraging.

As the advertising market recovered, Publicis Groupe posted an increase of 14.9% in reported revenue for the first half and organic growth of +5.3%.

Second quarter revenue was up by 21.3% and organic growth rose to 7.1%.

Revenue in first half 2010

Consolidated revenue for the first half of 2010 was EUR 2,538 million compared to EUR 2,209 million for the first half of 2009, an increase of 14.9% (exchange rate impact was positive at EUR 55 million).

Organic growth was 5.3%.

First half growth reflects the strong recovery in advertising expenditure after the record slump triggered by the 2009 economic crisis. The larger networks, in particular Leo Burnett and Publicis Worldwide along with VivaKi, made the most of the upturn, and digital activities maintained their strong growth trend.

The breakdown of consolidated revenue for the first half of 2010 is as follows: 33% from advertising, 20% from media and 47% from specialized agencies and marketing services (including digital activities).

    Breakdown of first half 2010 revenue by region

    (EUR million)                Revenue           Organic Growth
                       1st half 2010 1st half 2009


    Europe                  805           738           +3.1%
    North America         1,258         1,061           +6.6%
    Asia-Pacific            286           238           +6.0%
    Latin America           126           109          +10.8%
    Africa and Middle East   63            63           -3.3%

    Total                 2,538         2,209           +5.3%

Almost all the regions, Europe included, saw a return to growth, with the exception of Africa and the Middle East, which is still suffering from Dubai's financial crisis.

North America continues to enjoy good growth. Organic growth for the USA was 7.2%, fuelled by strong growth from all the agencies and significant contributions from the healthcare and digital activities, the latter accounting for 42.5% of the region's revenue.

The Asia Pacific region is growing again, thanks largely to India and Korea.

Every country in Latin America except Chile reported growth.

Expressed in US dollars, first half revenue was USD 3,362 million, an increase of 14.3%.

Revenue in 2nd quarter 2010

Consolidated second quarter 2010 revenue was EUR 1,376 million, an increase of 21.3% on the figure of EUR 1,134 million for the corresponding period in 2009 (the exchange rate impact was positive at EUR 73 million).

Organic growth was +7.1% in the second quarter, a significant improvement on first quarter organic growth of +3.1%.

The second quarter undoubtedly benefited from a low basis of comparison, but the marked upswing in advertising business seen in the first quarter was also maintained.

Growth was also fuelled by new business wins in 2009 and by an increase in advertising spending by major clients.

    - Breakdown of 2nd quarter 2010 revenue by region

      (EUR million)              Revenue            Organic Growth
                       2nd quarter    2nd quarter
                           2010           2009


    Europe                  437            381          +7.3%
    North America           679            535          +8.1%
    Asia-Pacific            154            123          +5.3%
    Latin America            71             58         +11.5%
    Africa and Middle East   35             37         -10.4%

    Total                 1,376          1,134          +7.1%

Europe performed well in the second quarter. Only Africa and the Middle East posted negative figures.

Operating margin and operating income

Operating margin before depreciation and amortization was EUR 422 million in first half 2010, up 26.7% from EUR 333 million for the first half of 2009.

Operating margin was EUR 369 million compared with EUR 287 million for the same period in 2009, an increase of 28.6%.

Operating margin rate for the first half of the year was 14.5%, up from 13% for the same period in 2009. This reflects the significant upturn in activity as compared with first half 2009, and continued tight control over costs. The effects of measures taken in 2009, particularly with regard to containing personnel costs, are beginning to be felt.

Operating income for first half 2010 was EUR 353 million compared to EUR 257 million for the corresponding period in 2009, an increase of 37.4%.

Net income

Net income attributable to the Group was EUR 213 million, an increase of 27.5% on the net income of EUR 167 million reported for the first half of 2009.

Net income includes a net financial expense of EUR 42 million and a tax charge of EUR 89 million for the half-year.

Free Cash Flow

The Groupe's free cash flow, excluding changes in WCR, was up sharply (+42% on the corresponding period of 2009) at EUR 277 million. The increase is directly linked to the increase in operating margin before depreciation and amortization.

Net financial debt at June 30, 2010

Net financial debt was EUR 618 million at June 30, 2010 compared to 899 EUR million at June 30, 2009. This figure includes the impact of the partial buyback of Publicis Groupe shares held by SEP Badinter-Dentsu at a cost of EUR 217.5 EUR million. Net financial debt at December 30, 2009 was EUR 313 million, the raise observed at June 30,2010 reflecting the usual seasonal effect.

The Groupe's average net debt for the first half of 2010 was EUR 673 million, down sharply on the figures of EUR 1, 002 million for first half 2009 and EUR 929 million for the full year 2009.

The Groupe's available liquidity position at June 30, 2010 was EUR 3.6 billion.

Shareholders' equity at June 30, 2010

Consolidated shareholders' including minority interests was EUR 3,111 million at June 30, 2010, compared with EUR 2,838 million at December 31, 2009. This includes the impact of allocation of 2009 income (dividends of EUR 107 million distributed).

The debt/equity ratio thus rose from 0.14 at December 31, 2009 to 0.20 at June 30, 2010.

II. NETWORKS

The upturn in advertising markets over the course of the first half of the year is benefiting all the Groupe's networks. The growing contribution from digital activities, up to 28.1% of first half revenue compared with 20.7% (at 2010 exchange rate) for the first half of 2009, once again confirms the Groupe's strategic decision to help its clients keep pace with a changing consumer landscape and the new digital audience. Digital activities are now making their way into every one of the Groupe's networks, bringing the benefits of expertise and new ideas in virtually every area of digital operations, be it search, display, or the social and mobile networks made possible by the creation of the VivaKi Nerve Center (and at the same time avoiding duplication of investments).

III. COST CONTROL

The Groupe continues to exercise tight control over its costs. Cost optimization programs are the focus of unrelenting attention and are ongoing. The deployment of shared service centers, initiated some years ago, continues, as does the process of regionalization. The "Americas" platform, designed to serve the entire continent, is scheduled to go fully operational at the end of this year. The rollout (first local and subsequently global) of ERP, made possible by the integration of most agencies into shared service centers and the adoption of shared processes, continues. The Group expects to achieve a significant reduction in its operating costs from this investment, through global harmonization of processes and systems as from 2012.

Thanks to a solid balance sheet and improved cost control, the Groupe is well placed to meet market needs and sharpen its competitive edge.

IV. New BUSINESS: USD 2.1 BILLION IN NET wins

Publicis Groupe took in USD 2.1 billion in net new business in the first half of 2010, clear testimony to the attractiveness of its products and services (see Appendix for list).

V. ACQUISITIONS

Publicis Groupe has embarked on a process of securing long-term growth by ramping up its engagement in digital activities and emerging economies, both of which are growth drivers for the communications sector today and in the future.

A significant number of targets have been identified, with special interest focusing on the opportunities offered by China.

On March 30, Publicis Groupe announced it had acquired a minority stake in Taterka Comunicacoes (Taterka), an advertising agency based in Sao Paulo, Brazil.

On April 6, 2010, the Groupe acquired Canadian agency In-Sync. Founded in 1989, the Toronto-based agency operates in the health and wellness space, specializing in market research consultancy and offering innovative marketing solutions to its biopharma clients.

At the end of April, Publicis Groupe bought out the minority interests in W&K and holds now 100% of the capital of this Chinese agency, now rebranded Leo Burnett Beijing Communications Co., Ltd.

On May 19, 2010, Publicis Groupe acquired Resolute Communications Ltd. Founded in 2002, Resolute Communications provides healthcare communications programs spanning strategic consulting, medical education, and media and public relations. Resolute is headquartered in London with an office in New York. Resolute will be merged with Publicis Life Brands in London to form a new entity renamed Publicis Life Brands Resolute, that will further entrench Publicis Healthcare Communications Group (PHCG) as a leader in the United Kingdom.

VI. FINANCE

January 2010 saw the early redemption of some of the outstanding 2018 Oceane convertible bonds. According to the 2018 Oceane prospectus, any holder was entitled to request early redemption of all or part of its Oceane bonds at the early redemption price of EUR 45.19 per bond. At the early redemption date, i.e. January 18, 2010, a total of 617,985 Oceane bonds were repaid early for a total amount of EUR 28 million.

The number of Oceane bonds subsequently outstanding is 2,624,538, representing 14.9% of the number initially issued (17,624,521).

Furthermore, in view of the authorization granted by the Combined Annual General Meeting of the shareholders on June 9, 2009, Publicis Groupe SA entered into an agreement on January 8, 2010, with an authorized intermediary, with a view to purchasing 2.7 million Publicis Groupe shares. This authorization was granted for a period of eighteen months from June 9, 2009, i.e. until December 8, 2010. To date, 2,482,440 shares have been purchased under this program.

On May 10, 2010 Publicis Groupe purchased from Dentsu Inc. a block of 7,500,000 of its own shares, held by SEP Dentsu-Badinter, to be cancelled. The total price paid for the block was EUR 217.5 million, equivalent to EUR 29 per share. The shares were immediately cancelled.

VII. RECENT EVENTS

Acquisitions

On July 12, 2010, Publicis Groupe announced its acquisition of G4, a Beijing-based advertising agency. Launched in 2009, G4 offers integrated communications solutions, including advertising, design and strategic consulting, to Nestle in China. G4 has rebranded as Publicis G4 and will join forces with the Publicis Beijing Nestle team. Concentrating all the skills and resources dedicated to Nestle within Publicis G4 will provide an enhanced service to this key customer throughout Greater China and the Asia region.

New Business

New business maintained its dynamic pace at the beginning of second half 2010 after total gains of USD 1 billion for the second quarter.

VIII. Outlook

For the second time in succession, ZenithOptimedia has upgraded its forecasts of growth in global advertising expenditure for 2010, most recently to 3.5% growth. These significantly higher forecasts confirm the upturn in the market, after a year of record decline in global advertising expenditure in 2009.

Publicis Groupe's growth rates for the first two quarters of 2010 are a mark of excellent performance and testimony to its judicious strategic choices, with digital activities continuing to expand across all the Groupe's networks and creating the right conditions for innovation and value creation. Emerging economies are returning to growth rates more commensurate with their level of development and opening up new prospects for the Groupe.

These two cornerstones offer assurances of growth both now and in the future.

Investments in talent and in digital activities are still very much ongoing, made possible by strict cost control and a sound financial situation.

With many emerging economies, China in particular, returning to high growth, a recovering US economy (although flat since May), and certain European countries (including France and the UK) holding up well, Publicis Groupe confirms its target of outperforming the market on growth for full year 2010.

"This document contains forward-looking statements. The use of the words "aim(s)," "expect(s)," "feel(s)," "will," "may," "believe(s)," "anticipate(s)" and similar expressions in this press release are intended to identify those statements as forward looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than in connection with applicable securities laws, Publicis Groupe undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. Publicis Groupe urges you to review and consider the various disclosures it made concerning the factors that may affect its business carefully, including the disclosures made to the French financial authority (AMF)"

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world's third largest communications group. In addition, it is ranked as the world's second largest media counsel and buying group, and is the first global network in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 46,000 professionals. Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty, as well as New York-based Kaplan Thaler Group. Media consultancy and buying is offered through the two first ranked worldwide networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and digital marketing led by the two first ranked Digitas and Razorfish networks. Publicis Groupe launched VivaKi to leverage the combined scale of the autonomous operations of Digitas, Denuo, Razorfish, Starcom MediaVest Group and ZenithOptimedia to develop new services, tools, and next generation digital platforms. Publicis Groupe's specialized agencies and marketing services offer healthcare communications with Publicis Healthcare Communications Group (PHCG, the first network in healthcare communications), sustainability communications and multicultural communications. With MS&LGroup, one of the world's top three PR and Events networks, expertise ranges from corporate and financial communications to public relations and public affairs, branding, social media marketing and events, sports marketing and events.

    Web site: http://www.publicisgroupe.com
    Appendices
    New Business - 1st Half 2010
    USD 2.1 billion (net)
    Key wins
    Digitas

Electronic Arts (Brazil), Topper (Brazil), CA (USA), Goodyear (USA), Aflac (USA), Sears (USA), Whitewave (USA), Olay (Hong Kong/ Taiwan), Airtel (India), Nestle (India), Renault ZE (France)

Fallon

Cadbury Flake (UK), French Connection (global), Nokia (global), The Cosmopolitan of Las Vegas. (USA), Cadillac (USA)

Leo Burnett

Chrysler (UK, Germany, Turkey), Samsung (Malaysia, Czech Republic, Thailand, Kazakhstan), COI/BIS (UK), Research in Motion- Blackberry (UK), DUFRY- duty free (Mexico), Sigma Alimentos (Mexico), Koleston (Colombia), Nestle (Guatemala), Sanofi-Aventis (Guatemala), Canon (Thailand), Amway (China), Siemens (China), Merrill Lynch (Korea), British Council (Sri Lanka), BMW (Malaysia), Pilipinas Shell (Philippines), Arla Food (Russia), Nycomed (Latvia), The ITI Group (Poland), Altıparmak (Turkey), El-Bi Electrics (Turkey), Turkcell (Turkey), Ulker (Turkey), Delipapier Sofidel (France), Campero (Guatemala, Salvador), V-Inspired (UK), Cemex (Costa Rica), World Gold Council (Turkey), Dubai International Film Festival, Tele2 (Kazakhstan), Fiat (Mexico), Cipher Lab (Taiwan)

MS&L Group

What's on (India), World Gold Council (China), Central agency for national insurance (France), National Defense Ministry (France), Klepierre Segece (France), Pernod Ricard (France), RapidShare (Germany), Apoteket (Sweden)

Publicis Worldwide

Dolce Gusto (France, USA), Chrysler (Canada), City of Toronto (Canada), Metro (Canada), Siemens Energy (Germany, Asia), Telefonica / Movistar (Spain), Sky News / Online project (UK), Cafe do Brasil (Italy), Orogel (Italy), J.K. Helene Curtis (India), Reserve Bank of India / VIP Bags (India), SCMP Classified Post (Hong Kong), Le Monde (France), Ricola (France), Descamps (France), Carte d'Or (France), Cyrillus (France), GT Land Plaza (China), La Halle (France), Aeroports de la Cote d'Azur (France), Nestle / Dairy Culinary (Mexico), Bupa (UK), Concha y Toro / VCT (Brazil), Hamburger / Financial (Germany), Bud Light (Canada), Beefeater Gin (UK), Randstad (UK), Belle Avenue (Thailand), Black Canyon (Thailand), Wellcome / Social business (Germany), Emirates Airlines (Netherlands), Stivoro / Anti-smoking campaign (Netherlands), Musee du Louvre (France), Losc / Lille Football Club (France), Hammerson (France), Shanghai World Expo's / Information & communication pavilion account, Virgin Mobile (Australia), City of Dreams / Digital account (Hong Kong), Indigo Books / Largest Canadian book retailer, (Canada), Hasbro (Canada), Canadian Olympic Foundation (Canada), Fiat / Punto Evo / International launch in Spain, Portugal, Netherlands, Belgium, Ireland, Poland ( France), BNP Paribas / Investment Partners (Netherlands), Nestle Maggi (Malaysia)

Saatchi & Saatchi

Arla Foods - Lurpak (Global except for UK), BNP Paribas (Poland), Red.es digital TV (Spain), Chrysler & Dodge SUV (China), Vinda (China), Carlsberg: Dali, Wusu, XiXia (China), Petrobras (Brazil), Sanitarium (New Zealand), Toyota (Italy)

Starcom MediaVest Group

Honda (Germany, Italy, Norway, Poland, Sweeden, UK), CBS Film (USA), Turner (USA), Napa Auto Parts (USA), Nintendo (Netherlands), Dutch Government (Netherlands), Van Haren (Netherlands), Silesia Voivodship (Poland), Ministry of Environment (Poland), Skyways (Sweeden), FEW Online Retail (Sweeden), Prudential Direct Insurance (Taiwan), Coca-Cola (France), Mitre 10 (Australia), Mars Wrigley (China), in.gr (Greece), General Mills (China), Supermac's (Ireland), AIB (Ireland), IKKS (Netherlands), Provident (Poland), Aflac (USA), Avon (USA), Kraft/Cadbury (global), American Egg Board (USA)

The Kaplan Thaler group

Aflac (USA)

ZenithOptimedia

Aviva (global), Reckitt Benckiser (global), Beijing Tourism Board, China Merchant Bank, Maoduoli (China), Electrolux (Vietnam), Georgia Pacific (Romania), Vivartia (Romania), BN Telecom (Turkey), Dyo (Turkey), Pegasus Airlines (Turkey), SAB Miller (Ecuador), Axtel (Mexico), Lindt (United Arab Emirates), Catalonian Government (Spain), Ministry of Environment (Spain), Perfume Shop (UK), Remington Consumer Products (USA), Beijing Lan Hai Cold Mineral Water (China), Warner Bros (Singapore), Universal Pictures (Mexico), Hubei Mobile (China), Reckitt Benckiser (China), AS Watson (APAC)

Glossary

Operating margin rate: operating margin/revenue.

Average half-year net debt: half-year average of average monthly net debt.

Free cash flow: cash flow from operations minus capital expenditures for tangible and intangible fixed assets, excluding acquisitions.

Net new business: this figure is derived not from financial reporting but from estimated media-marketing budgets based on annual business (net of losses) from new and existing clients.

For further information, please visit our website: http://www.finance.publicisgroupe.com

    2010 Press Releases

    08/01/10  Share repurchase program

    11/01/10  Partnership between the Women's Forum and Terrafemina

    18/01/10  OCEANES 2018 - early redemption

    05/02/10  Lov Group and Publicis Groupe in exclusive negotiations

    17/02/10  2009 Annual Results

    16/03/10  Management Board bonuses

    30/03/10  Publicis Groupe acquires a minority stake of Brazilian agency
              Taterka Comunicacoes

    06/04/10  Publicis Groupe Acquires In-Sync Healthcare Agency

    22/04/10  Publicis Groupe: First Quarter 2010 Revenue - Back to Growth

    26/04/10  Re-Elections at the Publicis Groupe Supervisory Board

    29/04/10  Publicis Groupe Acquires Remaining Capital of Leo Burnett / W&K
              Beijing Advertising Co. Ltd

    10/05/10  Publicis Groupe Announces its Acquisition from Dentsu Inc. of
              7,500,000 of its own Shares in Order to Cancel Them

    19/05/10  Publicis Groupe acquires Resolute Communications, in Healthcare
              Communications

    01/06/10  Publicis Groupe Annual General Shareholders' Meeting - Dividend
              set at 0.60 Euros per Share

    01/06/10  Supervisory Board and Management Board of Publicis Groupe

    28/06/10  Daniele Bessis Joins Publicis Groupe as CEO of Re:Sources
              Worldwide

    12/07/10  Publicis Groupe Acquires G4 Advertising co. Ltd. in China


    For further information: http://www.publicisgroupe.com

                                 Publicis Groupe

          Consolidated financial statements - June 30, 2010 (unaudited)

    Consolidated income statement


    (in millions of euros)                  June 30,     June 30,       2009
                                               2010         2009

    Revenue                                   2,538        2,209       4,524
    Personnel expenses                       (1,613)      (1,423)     (2,812)
    Other operating expenses                   (503)        (453)       (940)
    Operating margin before depreciation
    and amortization                            422          333         772
    Depreciation and amortization expense
    (excluding intangibles arising on
    acquisition)                                (53)         (46)        (92)
    Operating margin                            369          287         680
    Amortization of intangibles arising on
    acquisition                                 (17)         (15)        (30)
    Impairment                                    -          (20)        (28)
    Non-current income (expense)                  1            5           7
    Operating income                            353          257         629
    Interest expense                            (40)         (34)        (73)
    Interest income                               6            9          12
    Cost of net financial debt                  (34)         (25)        (61)
    Other financial income (expenses)            (8)          (2)         (9)
    Income of consolidated companies before
    taxes                                       311          230         559
    Income taxes                                (89)         (59)       (146)
    Net income of consolidated companies        222          171         413
    Share in net income of associates             -            1           4
    Net income                                  222          172         417
    Of which:

    - Net income attributable to
      non-controlling interests
      (Minority interests)                        9            5          14
    - Net income attributable to equity
      holders of the parent company             213          167         403


    Per share data (in euros) - Net income
    attributable to equity holders of the
    parent company
    Number of shares                    204,545,563  200,760,562 202,257,125
    Net earnings per share                     1.04         0.83        1.99
    Number of shares - diluted          237,073,116  206,261,458 220,867,344
    Net earnings per share - diluted           0.95         0.82        1.90

    Consolidated statement of comprehensive income

    (in millions of euros)                   June 30,     June 30,      2009
                                                2010         2009

    Net income for the year (a)                  222          172        417
    Other comprehensive income
    - Valuation of available-for-sale
      investments at fair value                   (1)           4         12
    - Actuarial gains and losses on defined
      benefit plans                              (24)         (16)        (4)
    - Translation of foreign operations          431          (12)       (59)
    - Deferred taxes on other comprehensive
      income                                       7            5          1
    Other comprehensive income for the period
    (b)                                          413          (19)       (50)

    Total comprehensive income for the period
    (a) + (b)                                    635          153        367
    Of which:

    - Comprehensive income attributable to
      non-controlling interests (Minority
      interests)                                  18            7         17
    - Comprehensive income attributable to
      Equity holders of the parent company       617          146        350



    Consolidated balance sheet

    (in millions of euros)                    June 30, 2010 December 31, 2009

    Assets
    Goodwill, net                                     4,416             3,928
    Intangible assets, net                              937               835
    Property and equipment, net                         480               458
    Deferred tax assets                                  96                73
    Investments in associates                            42                49
    Other financial assets                              113                94
    Non-current assets                                6,084             5,437
    Inventory and costs billable to clients             406               290
    Accounts receivable                               5,941             4,875
    Other receivables and other current assets          609               548
    Cash and cash equivalents                         1,418             1,580
    Current assets                                    8,374             7,293

    Total Assets                                     14,458            12,730


    Liabilities and shareholders' equity
    Share capital                                        76                79
    Additional paid-in capital and retained earnings  3,014             2,734
    Equity attributable to holders of the
    parent company                                    3,090             2,813
    Non-controlling Interests (Minority interests)       21                25
    Total Equity                                      3,111             2,838
    Long-term financial debt (more than 1 year)       1,812             1,796
    Deferred tax liabilities                            235               214
    Long-term provisions                                499               449
    Non-current liabilities                           2,546             2,459
    Accounts payable                                  6,858             5,835
    Short-term financial debt (less than 1 year)        227               214
    Income taxes payable                                 75                63
    Short-term provisions                               105               100
    Other creditors and other current liabilities     1,536             1,221
    Current liabilities                               8,801             7,433

    Total Liabilities and Equity                     14,458            12,730



    Consolidated cash flow statement

    (in millions of euro)                       June 30,    June 30,    2009
                                                   2010        2009
    Cash flows from operations
    Net income                                      222         172      417
    Adjustment for non-cash income and
    expenses:
    Income taxes                                     89          59      146
    Cost of net financial debt                       34          25       61
    Capital (gains) losses on disposal
    (before tax)                                     (1)         (4)     (10)
    Depreciation, amortization and
    impairment on property and equipment and
    intangible assets                                70          81      150
    Non-cash expenses on stock options and
    similar items                                    15          12       24
    Other non-cash income and expenses                3           5       11
    Equity in net income of associates                -          (1)      (4)

    Dividends received from equity accounted
    investments                                      11           6        9
    Taxes paid                                     (103)        (86)    (157)
    Interest paid                                   (36)        (51)     (75)
    Interest received                                 7          10       16
    Change in working capital requirements(1)      (266)       (495)      59
    Net cash flows provided by (used in)
    operating activities (I)                         45        (267)     647
    Cash flows from investment operations
    Purchases of property and equipment and
    intangible assets                               (35)        (33)     (74)
    Proceeds from sale of property and
    equipment and intangible assets                   1           -       10
    Proceeds from sale of investments and
    other financial assets, net                      (5)          3       10
    Acquisition of subsidiaries                     (48)        (70)    (298)
    Divestment of subsidiaries                        1           -        1
    Net cash flows provided by (used in)
    investment operations (II)                      (86)       (100)    (351)
    Cash flows from financing operations
    Capital Increase                                  -           -        -
    Dividends paid to parent company
    shareholders                                      -           -     (107)
    Dividends paid to minority shareholders
    of subsidiaries                                 (14)        (15)     (26)
    Cash received on new borrowings                  13         734      744
    Reimbursement of borrowings                     (59)       (115)    (108)
    Net (purchases)/sales of treasury shares
    and equity warrants                            (249)          1        5
    Cash received on hedging transactions             -           -        -
    Net cash flows provided by (used in)
    financing operations (III)                     (309)        605      508
    Impact of exchange rate fluctuations (IV)       173          34      (94)
    Net change in consolidated cash flows (I
    + II + III + IV)                               (177)        272      710
    Cash and cash equivalents as of January 1,    1,580         867      867
    Bank overdrafts as of January 1,                (33)        (30)     (30)
    Net cash and cash equivalents at
    beginning of period                           1,547         837      837
    Cash and cash equivalents at end of
    period                                        1,418       1,162    1,580
    Bank overdrafts at end of period                (48)        (53)     (33)
    Net cash and cash equivalents at end of
    period                                        1,370       1,109    1,547
    Net change in cash and cash equivalents        (177)        272      710
    (1) Breakdown of change in working
    capital requirements
    Change in inventory and costs billable
    to clients                                      (73)         31       29
    Change in accounts receivable and other
    receivables                                    (458)        729      160
    Change in accounts payable, other
    creditors and provisions                        265      (1,255)    (130)
    Variation in working capital
    requirements                                   (266)       (495)      59


    Statement of changes in consolidated shareholders' equity

    Number of    (in millions of    Capital Additional Reserves  Translation
    outstanding  euros)             stock   paid-in    and       reserve
    shares                                  capital    retained
                                                       earnings

    178,854,301  January 1, 2009        78  2,553      (105)           (315)
                 Net income for the                     167
                 period
                 Other
                 comprehensive
                 income
                 Valuation of
                 available-for-sale
                 investments at
                 fair value
                 Actuarial gains                        (11)
                 and losses on
                 defined benefit
                 plans
                 Translation of                                         (14)
                 foreign operations
                 Total other            -     -         (11)            (14)
                 comprehensive
                 income
                 Total                  -     -         156             (14)
                 comprehensive
                 income for the
                 period

                 Equity component                        49
                 of OCEANE 2014
                 Dividends                             (107)
                 Share-based                             12
                 compensation
                 Additional                              (3)
                 interest on Oranes
                 Effect of changes
                 in scope of
                 consolidation and
                 of commitments to
                 purchase minority
                 interests
    72,910       Purchases/sales of                       1
                 treasury shares
    178,927,211  June 30, 2009          78  2,553         3            (329)


    Number of   (in millions   Fair-value Equity       Non-Controlling  Total
    of outstanding euros)      reserve    attributable Interest        Equity
    shares                                to holders   (Minority
                                          of the       interests)
                                          parent
                                          company

    178,854,301 January 1, 2009    109          2,320        30        2,350
                Net income for the                167         5          172
                period
                Other
                comprehensive
                income
                Valuation of         4              4                      4
                available-for-sale
                investments at
                fair value
                Actuarial gains                   (11)                   (11)
                and losses on
                defined benefit
                plans
                Translation of                    (14)        2          (12)
                foreign operations
                Total other          4            (21)        2          (19)
                comprehensive
                income
                Total                4            146         7          153
                comprehensive
                income for the
                period

                Equity component                   49                     49
                of OCEANE 2014
                Dividends                        (107)      (15)        (122)
                Share-based                        12                     12
                compensation
                Additional                         (3)                    (3)
                interest on Oranes
                Effect of changes                   -         3            3
                in scope of
                consolidation and
                of commitments to
                purchase minority
                interests
    72,910      Purchases/sales of                  1                      1
                treasury shares
    178,927,211 June 30, 2009      113          2,418        25        2,443


    Number of   (in millions of    Capital Additional Reserves   Translation
    outstanding  euros)            stock   paid-in    and        reserve
    shares                                 capital    retained
                                                      earnings

    187,168,768 January 1, 2010       79   2,600      390             (377)
                Net income                            213
                Other
                comprehensive
                income
                Valuation of
                available-for-sale
                investments at
                fair value
                Actuarial gains                       (17)
                and losses on
                defined benefit
                plans
                Translation of                                          422
                foreign operations
                Total other            -     -        (17)              422
                comprehensive
                income
                Total                  -     -        196               422
                comprehensive
                income for the
                period

                Dividends paid                       (107)
                Share-based                            19
                compensation
                Additional                             (3)
                interest on Oranes
                Effect of changes
                in scope of
                consolidation and
                of commitments to
                purchase minority
                interests
    (7,500,000) Cancellation of      (3)   (215)
                Publics Groupe SA
                shares
    (807,764)   Purchases/sales of                    (31)
                treasury shares
    178,861,004 June 30, 2010         76   2,385      464                45


    Number of   (in millions    Fair-value Equity       Non-Controlling Total
    of outstanding euros)       reserve    attributable Interests      Equity
    shares                                 to holders   (Minority
                                           of the       interests)
                                           parent
                                           company

    187,168,768 January 1, 2010    121       2,813       25            2,838
                Net income                     213        9              222
                Other
                comprehensive
                income
                Valuation of       (1)          (1)                       (1)
                available-for-sale
                investments at
                fair value
                Actuarial gains                (17)                      (17)
                and losses on
                defined benefit
                plans
                Translation of                 422        9              431
                foreign operations
                Total other        (1)         404        9              413
                comprehensive
                income
                Total              (1)         617       18              635
                comprehensive
                income for the
                period

                Dividends paid                (107)     (14)            (121)
                Share-based                     19                        19
                compensation
                Additional                      (3)                       (3)
                interest on Oranes
                Effect of changes
                in scope of
                consolidation and
                of commitments to
                purchase minority
                interests                        -       (8)              (8)
    (7,500,000) Cancellation of               (218)                     (218)
                Publics Groupe SA
                shares
    (807,764)   Purchases/sales of             (31)                      (31)
                treasury shares
    178,861,004 June 30, 2010      120       3,090       21            3,111



    Earnings per share calculation details

    Earnings per share and diluted earnings per share


    (In millions of euro except for shares)      June 30, 2010 June 30, 2009
    Net income used for the calculation of
    earnings per share
    Net income attributable to equity holders
    of the parent                              a           213           167
    Impact of dilutive instruments:
    - Savings in financial expenses related
    to the conversion of debt instruments,
    net of tax (1)                                          13             2
    Net income attributable to equity holders
    of the parent - diluted                    b           226           169
    Number of shares used for the calculation
    of earnings per share
    Average number of shares composing the
    company's share capital                        195,469,852   196,020,983
    Treasury shares to be deducted (average
    for the year)                                  (11,231,966)  (17,130,227)
    Shares to be issued to redeem the Oranes        20,307,677    21,869,806
    Average number of shares used for the
    calculation                                c   204,545,563   200,760,562
    Impact of dilutive instruments: (2)
    - Free shares and dilutive stock options         3,904,161     1,045,823
    - Equity warrants (BSA)                            172,692             -
    - Shares resulting from the conversion of
    convertible bonds (1)                           28,450,700     4,455,073
    Number of shares - diluted
    (en euro)                                  d   237,073,116   206,261,458


    Net earnings per share                    a/c         1.04          0.83

    Net earnings per share - diluted          b/d         0.95          0.82

(1) In 2010 and 2009, both Oceane 2018 and Oceane 2014 were taken into account for the calculations (the Oceane 2014, issued in June 2009, was only included for one month for the first semester 2009).

(2) Only stock-options and equity warrants with a dilutive effect (whose exercise price is lower than the average share price for the period) are taken into consideration.

    Headline earnings per share and diluted earnings per share

    (In millions of euro except for shares)      June 30, 2010 June 30, 2009
    Net income used for the calculation of
    headline earnings per share (1)
    Net income attributable to equity holders
    of the parent                                          213           167
    Items excluded:
    - Amortization of intangibles arising on
    acquisition, net of tax                                 10             9
    - Impairment, net of tax                                 -            16
    - Deferred tax asset linked to Oceane 2014(2)            -          (11)

    Headline income attributable to equity
    holders of the parent                       e          223           181
    Impact of dilutive instruments:
    - Savings in financial expenses related to
    the conversion of debt instruments, net of
    tax                                                     13             2
    Adjusted net income attributable to equity  f
    holders of the parent - diluted                        236           183

    Number of shares used for the calculation
    of earnings per share
    Average number of shares composing the
    company's share capital                        195,469,852   196,020,983
    Treasury shares to be deducted (average
    for the year)                                  (11,231,966)  (17,130,227)
    Shares to be issued to redeem the Oranes        20,307,677    21,869,806
    Average number of shares used for the
    calculation                                 c  204,545,563   200,760,562
    Impact of dilutive instruments:
    - Free shares and dilutive stock options         3,904,161     1,045,823
    - Equity warrants (BSA)                            172,692             -
    - Shares resulting from the conversion of
    convertible bonds                               28,450,700     4,455,073
    Number of shares - diluted
    (in euro)                                   d  237,073,116   206,261,458


    Headline earnings per share (1)            e/c        1.09          0.90

    Headline earnings per share - diluted (1)  f/d        1.00          0.89

(1) Earnings per share before Amortization of intangibles from acquisitions, impairment and deferred tax assets linked to equity component of Oceane 2014.

(2) Effect of deferred tax asset recognized against deferred tax liabilities linked to equity component of Oceane 2014 recorded as equity.

SOURCE Publicis Groupe

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