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Publicis Groupe Services: September 30, 2009 Revenue

October 27, 2009
    PARIS, October 27 /PRNewswire-FirstCall/ --

    First 9 months of 2009:

    - Revenue: EUR 3.256 billion
    - Revenue growth (as published): -2.3%
    - Organic growth: -6.9%
    - Net New Business: USD 4.8 billion

    Q3 2009:

    - Revenue: EUR 1.047 billion
    - Revenue growth (as published): -5.3%
    - Organic growth: -7.4%

“As announced, the advertising market reached its lowest point during
last summer. After a fall superior to 13% at the end of June, forecasts now
show a decrease by an average 10% for the full year.

During the second quarter, revenue for Publicis Groupe showed a regular
decrease, exceeding a negative 10% in June. As previously predicted, July,
August and September show improvement. Therefore, 3rd quarter posts an
organic growth negative by 7.4% when it was negative by 8.6% for the second
quarter.

New Business has been particularly active during the first nine months
and Publicis Groupe continues to be ranked first with net wins totalling
close to 5 billion US dollars.

Organic growth performances exceeding our peers’ and market share gains:
this is the result of our teams’ excellent performances backed by an offer
well adapted to the needs of our clients, particularly in digital. As for
digital, we have further strengthened our operations through the acquisition
of Razorfish which is being integrated according to our plans and which
should be EPS accretive starting as soon as in 2011.

In 2010, our share in digital should exceed 25% of our revenue. The
advertising market is starting its recovery which will be slow and
progressive. First positive growth numbers should be established during the
second half of 2010. Publicis Groupe should continue to outperform the
market.”

Maurice Levy, Chairman and Chief Executive Officer of Publicis Groupe

3rd quarter of 2009

– 3rd quarter 2009 business activity

As expected, the third quarter improved compared to the second quarter
2009, the lowest point of the market having probably been hit during the
summer. For Publicis Groupe the bottom was reached in June. One can assume
that the regular deterioration of the market has stopped and that a slow and
progressive recovery is under way.

– Revenue in the 3rd quarter of 2009

Consolidated revenue in the third quarter of 2009 was 1,047 million euro,
down 5.3% compared to the third quarter of 2008, while organic growth
decreased by 7.4%.

    Breakdown of 3rd quarter revenue by geographic area

    (in millions of               Revenue           Organic Growth
         euros)
                           Q3 2009       Q3 2008      2009 vs 2008
    Europe                     359           411              -9.5%
    North America              488           481              -5.3%
    Asia-Pacific               114           124             -12.4%
    Latin America               58            62              -3.1%
    Africa & Middle
    East                        28            27              -0.2%
    Total                    1,047         1,105              -7.4%

Europe: If worsening market conditions affected every country in Europe,
good performance of Publicis Worldwide in France and the Group’s media buying
agencies in Western Europe and Poland deserve to be highlighted. All
activities in the United Kingdom and Southern Europe show sharply declining
numbers.

North America: The positive trend in healthcare and digital
communications partially offset the decline in all other areas. A decrease of
organic growth of 5.3% for North America represents a strong performance.

Asia-Pacific: The markedly negative growth rate in the region reflects a
contrasted situation with on the one hand, some mature economies severely
hit, and on the other hand, China remaining promising.

Latin America: Organic growth in the region has been mostly generated by
Argentina, Venezuela and Colombia. The good performance achieved by PWW and
Saatchi & Saatchi in Brazil are also noteworthy.

Africa and Middle East: As elsewhere, growth declined, but to a lesser
extent and revenue, thanks to Leo Burnett, the Group’s media business and the
growth of VivaKi remained stable.

Publicis Groupe at September 30, 2009

– Revenue at September 30, 2009

Consolidated revenue in the first nine months of 2009 was 3,256 million
euro
, down by 2.3% from the 3,332 million reported in 2008.

PHCG (Healthcare activities) showed improvement, almost stable compared
to the previous year thanks to PMD (Personal Message Delivery). Events and
Public Relations show a very severe decline. A reorganization program has
been initiated to ensure the relaunch of these activities as soon as the
market takes off again.

With the advertising market contracting by roughly 13% according to
current estimates, organic growth contraction for Publicis Groupe was limited
to 6.9%.This figure is attributable to the overall economic environment, was
amplified by the Chapter 11 process at General Motors. Decline was limited
thanks to the 5.5% organic growth achieved in digital communications.

    - Revenue breakdown by geographic area at September 30, 2009,
year-on-year:

    (in millions of                 Revenue             Organic Growth
        euros)
                        September 30,   September 30,    2009 vs 2008
                             2009              2008

    Europe                  1,096             1,284          -10.9%
    North America           1,549             1,423           -4.2%
    Asia-Pacific              352               367           -9.6%
    Latin America             167               174           -0.3%
    Africa & Middle            92                84           +0.3%
    East
    Total                   3,256             3,332           -6.9%

It should be emphasized that in the first nine months of 2009, digital
communications accounted for 21.3% of Groupe’s consolidated revenue, up from
18.5% in the prior-year period (at 2009 exchange rate). Likewise, emerging
markets generated 22.1% of total revenue in the first nine months, compared
with 21.7% for the same period of 2008 (at 2009 exchange rate).

– Highlights in the first nine months of the year

– New Business: 4.8 billion dollars

New Business at 4.8 billion dollars in the first nine months of the year,
remain very satisfactory, Publicis Groupe being ranked number one worldwide
by Nomura.

This amount, net of account losses, compares with the 3.7 billion dollar
reported in the first nine months of 2008.

In the third quarter alone the following wins are worth noting:

ABInbev-Becks (U.S.A), Barrat (U.S.A), Bristol Myers Squibb (U.S.A.),
Cadbury (U.K.), Carrefour (Brazil), Fiat (Brazil), Huiyjan Juices (China),
Kerry Foods (U.K.), RBS (U.S.A), Telefonica (Latin America) Wendy’s (U.S.A,
Canada) and Wing Tai Holdings (Singapore).

– External growth and strategic initiatives

Several major strategic initiatives took place during the first half of
the year. Chief among them were the cooperation agreements signed with
Microsoft on June 25th 2009, and the acquisition of Razorfish, the world’s
second largest interactive marketing agency and a Microsoft subsidiary. The
Razorfish transaction closed on October 13th and will be consolidated as of
that date. The total consideration for the transaction amounted to 369
million euros
through delivery of 6.5 million shares and the balance in cash.
With this acquisition, Publicis Groupe strengthens its leading position in
digital communications, gains additional digital capabilities and enriches
the Group’s portfolio with blue chip clients. The integration process is
rolling out following a precise plan, should bring 13 million dollars of cost
savings making the acquisition accretive as of 2011.

– Financial situation at September 30, 2009

At September 30, 2009, net debt is 789 million euro, a 456 million-euro
decrease year-on-year.

Average net debt for the first nine months of 2009 is 961 million euro.

At comparable exchange rates, net debt stands 112 million euro lower than
at September 30, 2008.

At September 30, 2009, Publicis Groupe has very satisfactory liquidity,
with 3.6 billion euro available (3.4 billion excluding uncommitted
facilities).

OUTLOOK

Outlook

Taking into account the sharp decrease of the advertising market, numbers
booked by Publicis Groupe represent a good relative performance. The Groupe’s
organic growth in the 3rd quarter signals the end of the continuous
deterioration that has been observed month after month since the summer of
2008.

Although overall visibility is low and there is still considerable
uncertainty about the state of the economy, Publicis Groupe confirms a
gradual recovery with, however, a few more negative quarters and a return to
growth likely to occur around the middle of 2010. During this upcoming
period, Publicis Groupe anticipates a better performance than the market and
will maintain its cost reduction actions.

Publicis Groupe’s financial position remains very satisfactory, with
strong liquidity and an expected decrease of the average net debt.

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world’s fourth
largest communications group. In addition, it is ranked as the world’s second
largest media agency, and is a global leader in digital and healthcare
communications. With activities spanning 104 countries on five continents,
the Groupe employs approximately 43,000 professionals. Publicis Groupe offers
local and international clients a complete range of advertising services
through three global advertising networks, Leo Burnett, Publicis, Saatchi &
Saatchi, and two multi-hub networks, Fallon and 49%-owned Bartle Bogle
Hegarty. Media consultancy and buying is offered through two worldwide
networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and
digital marketing led by Digitas and Razorfish. Publicis Groupe recently
launched VivaKi to leverage the combined scale of the autonomous operations
of Digitas, Razorfish, Starcom MediaVest Group, Denuo and ZenithOptimedia to
develop new services, tools, and next generation digital platforms. Publicis
Groupe’s Specialized Agencies and Marketing Services offer healthcare
communications, corporate and financial communications, sustainability
communications, shopper marketing, public relations, CRM and direct
marketing, event and sports marketing, and multicultural communications. Web
site: http://www.publicisgroupe.com

“Certain statements in this report, apart from historical facts, may
constitute forward-looking statements or unaudited financial forecasts. These
forward-looking statements involve certain risks and uncertainties and may
prove to be materially different from actual future results. All
forward-looking statements are expectations as of the date of this report,
and Publicis Groupe undertakes no obligation to update them for new events or
for any other reason except as required by law. Publicis Groupe encourages
you to study carefully all information concerning factors that may impact its
business, as described in the Reference Document filed with the French market
authority (Autorite des Marches Financiers).”

    Appendix
    New Business 2009
    Key New Business Wins
    Digitas

Total (France), TGI Friday’s (United States), Whirpool (Brazil),
Carrefour (Brazil)

Fallon

The Auteurs (United Kingdom), Kerry Foods (United Kingdom), Burton’s
Foods (United Kingdom), Unilever (United Kingdom),Cadbury (UK), Innocent
(UK), Oxfam International (UK), Comic Relief (UK), The BBC – Olympics 2012
Coverage (UK)

Leo Burnett

Caltex oil (Australia), Carrefour (Colombia), MCYS Government Social
Awareness (Singapore), MillerCoors (United States), Turkcell telecom
(Turkey), Wellatone-P&G (Russia), Falabella department store (Colombia), TVO
television channel (Canada), Alfa telecommunications (Libya), Tourism Board
(Singapore), Movistar (Colombia), Telkomsel mobile telecom (Indonesia),
Herbapol food (Poland), BMW (China), Ajisen Ramen (China), Alpina (Columbia),
Zeebo Toys (Mexico), Shop Direct Littlewoods.com (UK), Fiat (Brazil), Heinz
(Mexico), Sportsbet (Australia), Thailand Business Coalition on Aids

Publicis Worldwide

Alitalia (Italy), Carrefour (France/International), Procter & Gamble
Crest (United Kingdom), Vichy (United Kingdom), Wrigley (China), Zurich
Connect (Switzerland), Century 21 (France), BNP Paribas-Fortis (Belgium),
Pernod-Ricard (United Kingdom), Swatch (Brazil), Nestle (Brazil), ABInBev -
Beck’s (USA), Barratt (USA), RBS (United States), BMW (Singapore), The
Chidren’s workforce Development Council (UK)

Publicis Consultants

Biscuit LeClerc (United States), Carrefour (France), City of The Hague
(Netherlands), Diageo (United Kingdom), FIMF online banking services
(Germany), Lactalis dairy products (Italy), Ministry of Agriculture
(Netherlands), Ministry of Economy, Industry and Employment (France), Roman
Meal (United States), Sanofi-aventis (Germany), Multaq Pharmaceuticals (USA),
Mead Johnson (USA), French Hospitals Foundation, Shell (Germany), Ministry of
Interior (The Netherlands)

Publicis Healthcare Communications Group (PHCG)

Sanofi-aventis (Aplenzin-United States), Biogen-Idec neurology (United
States
), Durex (United States)

Saatchi & Saatchi

BingoLotto (United Kingdom), House of Travel (New Zealand), Invalidity
Insurance (Switzerland), LMG International auto insurance (Thailand),
Panasonic (Indonesia), RTA/Dubai Metro Launch (United Arab Emirates), Suning
household electrical appliances (China), Tsingtao beer (China), Midea
household electrical appliances (China), Cadbury Dairy Milk (Australia/New
Zealand
), MillerCoors-Miller Genuine Draft, Keystone, NGD 64 beer (United
States
), HP (Switzerland/EMEA), San Miguel (UK), Siemens (China),
Amway-Nutrilite (China), Maxima (India), Kerry Foods (UK), Wei Chuan (Taiwan), Huiyjan Juices (China), Oak Pacific Interactive-www.renrens.cn
(China), Asia games & China Football Club (China), Lion Nathan- Hahn Super
Dry (Australia), Sara Lee/Douwe Egberts – Senseo (Belgium/Europe),

Haagen-Dazs (France), EurosportBet (France), Vivesco (Germany), Postel (Italy)

Starcom MediaVest Group

Alfa telecommunications (Libya), Capital One (United Kingdom), Cerveceria
Nacional (Panama), Heinz (Mexico), Honda (Spain), Kraft Foods (United Arab
Emirates
), Metro Group (Poland), PTC telecommunications (Poland), PZU
financial services (Poland), Schering Plough Claritin (Hungary), CNAMTS
health insurance (France), Supermercados Plaza’s (Venezuela), Bupa
International health insurance (United Kingdom), British Gas (United
Kingdom
), Comcast (United States), An Post postal service (Ireland), National
Foods / Dairy Farmers (Australia), Wrigley food (United States), TGI Friday’s
(United States), Adevarul Holding media (Romania), Abbott Healthcare (India),
Baguepi food (France), MEDEF (France), Telefonica (Latin America), Autoglass
(United Kingdom), Bristol-Myers Squibb (United States), World Gold Council
(United Arab Emirates)

The KaPlan Thaler Group

Wendy’s (United States, Canada)

ZenithOptimedia

Al-Bandar Group multibrand shop (Saudi Arabia), Nestle (Netherlands),
Si.mobil Vodafone (Slovenia), Jenny Craig (United States), Ubank (Australia),
Jamena Gas Networks (Australia), China Mobile (China), T38/40 weight-loss
product (Portugal), MTV (United Kingdom), Panasonic (Indonesia), Turismo de

Valencia (Spain), Haberturk newspaper (Turkey), British Airways (United
Kingdom
), Kang Yuan pharmaceutical products (China), Parques Reunidos
amusement parks (Spain), Sanofi-aventis (Ukraine), Madrid 2016 (Spain), ICO
public institute for loans and financing (Spain), Tourism of Cataluna
(Spain), 118118 (United Kingdom), JP Morgan (United States), TCL electronic
components (China), Videocon Group telecommunications (India), Ministry of
Community Development, Youth and Sports (Singapore), Travel Channel
(Germany), Charles Vogele garment industry (Germany), JKP music production
(Germany), Ministry of Agriculture and Rural Development (Poland), LIDL
supermarkets (Spain), Saxo Bank (Switzerland), Gucci Group (United States),
Perfetti Van Melle confectioner (China), Red Bull (China), Mars (China),
Hyundai (Czech Republic), Roads and Transport Authority (United Arab
Emirates
), Red.Es Public institution, entity for the ministry of industry,
tourism, and commerce (Spain), Dairy Queen food (United States), Mortgage
Choice (Australia), Marriott (Asia-Pacific), Wearnes Automotive (Singapore),
Gamina digital (Taiwan), l’Oreal (Thailand), Turismo del Pais Vasco (Spain),
Pringle of Scotland Clothing (International), Georgia Pacific (Spain),
WingTai Fashion (Singapore), Unitech Wireless (India)

    2009 Press Releases

    01/08/09      Mathias Emmerich is appointed Senior Vice President
                  of Publicis Groupe
    01/14/09      Philippe Lentschener leaves Publicis Groupe
    02/04/09      Isabelle Simon joins Publicis Groupe as Senior Vice
                  President
    02/11/09      Annual results 2008
    02/12/09      Publicis announces that it has repurchased a portion
                  of its OCEANEs maturing on January, 18, 2018, and is
                  offering to purchase the remaining OCEANEs for a price of
                  EUR42.5724 per bond
    02/20/09      Results of the standing purchase offer of OCEANEs
                  maturing on January 18, 2018
    03/11/09      Publicis Groupe involves its employees in Group
                  growth
    03/24/09      136 Publicis key executives invest strongly in the
                  Group
    04/15/09      Publicis Groupe pursues its global digital expansion,
                  acquires Nemos, Swiss leader in multimedia and flash
                  programming
    04/16/09      Publicis Groupe won HP personal systems group
                  pan-European advertising and digital communications
    04/30/09      Eric Giuily leaves Publicis Consultants | Worldwide
    05/11/09      Appointments at Publicis Groupe
    05/19/09      Publicis Groupe acquires the Publicis MARC Group,
                  strengthens holistic offer in the Balkan region
    05/20/09      Publicis Groupe grants 50 free shares to each
                  employee in France
    06/04/09      Publicis Groupe - General Motors
    06/09/09      Publicis Groupe annual general shareholders' meeting,
                  dividend set at 0.60 euros per share
    06/16/09      Publicis Groupe announces the offering of convertible
                  bonds
    06/16/09      Publicis Groupe issue of convertible bonds (OCEANEs)
                  in the amount of 625 million euros - Final terms for the
                  OCEANE 2014
    06/17/09      Publics Groupe issue of convertible bonds (OCEANEs)
                  in the amount of 625 million euros - Granting of the AMF
                  visa
    06/19/09      Publics Groupe issue of convertible bonds (OCEANEs) -
                  Exercise of the over-allotment (greenshoe) option for the
                  issue of approximately 625 million euros increased to
                  approximately 719 million euros
    06/25/09      Microsoft Corporation and Publicis Groupe announce
                  broad strategic agreement
    06/30/09      Publicis Groupe, second most awarded group in Cannes,
                  with a total of 101 Lions
    07/09/09      Publicis Groupe to receive the 2009 Global Equity
                  Organization award for the most innovative and creative
                  plan design for its employee stock plan
    13/07/09      Publication date for half-year results
    22/07/09      GM
    23/07/09      Half-year 2009 results
    09/08/09      Publicis Groupe to Acquire Razorfish from Microsoft
                  Corporation
    01/09/09      Publicis Groupe Announces Acquisition Agreement of
                  Unilever C.R.M. Program "Pour Tout Vous Dire"
    03/09/09      Women's Forum for Economy and Society Joins Publicis
                  Groupe
    22/09/09      Publicis Groupe Phonevalley Collaborates With
                  Microsoft Mobile Advertising on Custom Mobile
    14/10/09      Acquisition of Razorfish Closed

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

SOURCE Publicis Groupe Services


Source: newswire