First Quarter 2006 Revenues Paris, May 3, 2006
1Q 2006 Revenues ( millions ) 1Q 2005 1Q 2006 888 994 Organic growth : + 12 % + 6.3 % Little change to the scope of consolidation Positive exchange rate effects in the amount of 52m, including 34m from $ alone 1Q 2005 1Q 2006 1 USD = 0.76272 1 USD = 0.83176 + 9 % 1
Quarterly organic growth +8.0% +8.6% +6.2% 6.3% +4.4% +4.5% +4.8% +4.0% +2.4% 1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005 3Q 2005 4Q 2005 1Q 2006 2
Strategic highlights in 1Q 2006 Acquisition of Betterway Marketing Solutions in China (marketing services) Acquisition of Solutions in India (marketing services) closed. Acquisition of majority interest in Capital MS&L (financial communications) in the UK Acquisition of Duval Guillaume, the leading independent advertising and marketing services agency in Belgium in April 3
Business highlights in 1Q 2006 Satisfactory growth for Group advertising networks, with a particularly strong performance for Saatchi & Saatchi Continued robust growth for media and healthcare communications agencies Growth in all geographical areas. 4
Business highlights in 1Q 2006 New business Outstanding performance at most units and special focus on local clients Negative impact of accounts lost or scaled down. 5
Revenues in 1Q 2006 by geographical area Europe Satisfactory growth overall, despite continued disparities (France and Southern Europe stable or down slightly; Germany, Netherlands and Scandinavia improving; UK very strong). North America Continued buoyant growth, particularly in the US. Asia-Pacific Continued buoyant growth, particularly in China and India. Latin America Satisfactory growth, particularly in Mexico, Argentina and Venezuela. Middle East Firm growth. 6
1Q 2006 Revenues by Geography ( millions) 1Q 2005 1Q 2006 organic growth YoY change Europe 360 374 + 3.1 % + 3.9 % North America 388 445 + 6.6 % + 14.7 % Asia Pacific 89 108 + 12.0 % + 21.3 % Latin America 36 47 + 10.1 % + 30.6 % Africa/Middle East 15 20 + 23.4 % + 33.3 % TOTAL 888 994 + 6.3 % + 12 % 7
Revenues at March 31, 2006 Selected Country Growth Rates > + 10 % + 5-10 % + 0-5 % Flat to < 0% India Argentina Sweden Russia Venezuela Australia China US Denmark Switzerland Netherlands UK Brazil Canada Germany Mexico France Spain Italy 8
1Q 2006 Revenues by Geography Latin America 4.7% Africa / Middle East 2.0 % Asia Pacific 10.9% Emerging markets 20 % North America 44.8% Europe 37.6% 9
New Business 10
Excellent performance in New Business in 1Q 2006 Net New Business $1.1 billion New business won: $2.2 billion, with especially strong performance from Leo Burnett, ZenithOptimedia and Starcom MediaVest Accounts lost or scaled back: Hewlett-Packard / PSG, advertising, USA / EMEA / Latam Sprint, media, USA Cadillac (projects), advertising, USA 11
1Q 2006 New Business Major Wins Publicis: Cord Blood Medical Services and National Pork Marketing Board (Hispanic Comm.)(US) - Deutsche Bahn/Transport and Logistics (Germany) - Comunidad de Madrid (Spain) Leo Burnett: McDonald's/project (Global) - Ladbrokes and Del Monte (UK) MTS (Russia) Centurion Bank (India) Sanofi-Aventis (Korea) Dragonair (Hong-Kong) - GM/Chevrolet (Germany) - Coca-Cola/Naturaqua (Hungary) Kellogg's (Ireland) Brasil Telecom (Brazil) - Procter & Gamble/Gillette (Brazil) - Orange (spain) Saatchi & Saatchi: Cyprus Tourism Organisation (Global, out of Greece & UK) BenQ (Singapore & Malaysia) - Banca Intesa (Italy) - Domino's Pizza (UK) - Generali Insurance (Austria) EMAP/Closer Magazine (UK) BASF (North America) Père Dodu (France, Spain) Lenscrafters (China, Hong-Kong) 12
1Q 2006 New Business Major Wins (cont d) Other advertising networks and agencies: Fallon: France Telecom/Orange & Wanadoo (in cooperation with Marcel), EMAP/project Jackie, Ask.com (London) Heineken (Tokyo), Avene/Personal care & Cosmetics (Sao Paulo) Kaplan Thaler Group (US): Pfizer's/Lipitor Starcom MediaVest Group (media buying and consultancy): St. Paul Travelers Insurance, EDS, Comcast, Luxottica, Washington Mutual, Macy s, California State Auto Assoc. (USA) - Cyprus Bank (Greece) - Beam Global Spirits (Spain) - Waitrose (EMEA) - LG Electronics (Russia) - Digi Telecom (Malaysia) ZenithOptimedia (media buying and consultancy): L'Oréal Paris (China) Digiturk, Media Digital TV (Turkey) - Hyundai (India) - Bolton Alimentari (Italy) Nestlé/Food (India) - TNT (UK, Germany, Netherlands, France, Italy) 13
1Q 2006 New Business Major Wins (cont d) Specialized Agencies: ARC : Monster.co.uk/Online advertising/crm (UK) - Post Office/Strategy/In- Store Comms (UK) Several Procter & Gamble brands (Mexico) PRCC: Arcelor (France) - P&G/FemCare (USA) Novartis/OTC (Global) PHCG: AstraZeneca/Crestor, P&G/Claratin and Gillette Oralcare, Schering Plough/ Garanoxicin, Serrono/Cladribin (USA) Sinuforte (Spain) Janssen Cilag/Topamax (Australia). 14
1Q 2006 New Business Main Losses Publicis: Hewlett-Packard/PSG-Personal Solutions Group (US, EMEA, LATAM) Saatchi & Saatchi: Old Spice (P&G) (Global) Starcom: Sprint (US) - Showtime (US) - Barclay s (UK) ZenithOptimedia: Nokia (APAC) 15
Outlook 16
2006 Outlook Very positive outlook in all geographical regions, with marketing in Europe set to rise in the runup to the Football World Cup in the second quarter. Confirmation of good prospects for organic growth and margin. 17
Appendix 18
1Q 2006 Revenues Organic Revenue Growth Calculation ( millions) 1Q 2005 revenues 887 Currency impact 52 939 Acquisitions/disposals and discontinued businesses (3) 1Q 2005 revenues @ 1Q 2006 rates and structure (a) 936 1Q 2006 revenues (b) 994 Organic Growth (b)/(a) + 6.3 % 19