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Publicis Groupe: 2010 Annual Results

    PARIS, February 10, 2011 /PRNewswire-FirstCall/ --

    Q4 2010
    Million euro
    - Revenue                       1,560    +23,0%
    - Organic growth                         +12,5%

    Million euro
    - Revenue                       5,418    +19.8%
    - Organic growth                          +8.3%
    - Operating margin                856    +25.9%
    - As percentage of revenue                15.8%

    (2009: 15.0%)
    - Net income (Groupe share)       526    +30.5%
    - Free Cash Flow(1)               646    +23.3%
    - Headline diluted EPS(2)(euro)  2.39    +21.0%
    - Net cash                        106
    - Dividend per share (3)(euro)   0.70    +16.7%

    (1) Excluding changes in WCR
    (2) Excluding amortization of intangibles arising from acquisitions,
        impairment, capital gains on sales of property
    (3) Subject to Shareholders' approval at June 7, 2011 AGM.

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

"The figures speak for themselves: organic growth of 8.3% for the year as a whole with a marked acceleration in the fourth quarter (12.5%), taking the Groupe's annual revenue to well above the five billion euro mark (5,418 million). The operating margin has improved by 80bp to 15.8%, compared to 2009 and net profit has risen to 526 million euro (+30.5%).

My first reaction to this remarkable performance is to address my warmest thanks to our clients for their trust in us, and to our staff for the talent they have displayed in doing their jobs, their tireless efforts, and their devotion to our clients.

Our financial situation is extremely robust and enables us to look ahead to the future with serenity. Investment will be aimed first and foremost at consolidating our two growth pillars: the digital sector in which we intend to strengthen our leadership position, and high-growth countries in which we must increase our presence even more rapidly.

For some years now we have regularly out-performed the market, and I am convinced that we shall continue to forge ahead in the years to come. There are several reasons for this: our asset profile perfectly matches the needs of advertisers, particularly in the field of digital communication (the Internet, social networks, mobile communication, etc.), our well-balanced business portfolio, our culture based on client service and cost control, and - though I hardly need to say it - the exceptional motivation of all our staff. Publicis Groupe's excellent 2010 annual results have put an end to the impact of the global financial crisis, and the Groupe has emerged from this difficult context considerably stronger."

The Supervisory Board of Publicis Groupe, at its meeting on February 9, 2011, chaired by Mrs Elisabeth Badinter, examined the accounts for the 2010 financial period presented by Mr Maurice Levy, Chairman and CEO.

    Key figures

    million euro, except for                  2010         2009     2010/2009
    percentages and per-share data

    (in euro)
    Data from the Income Statement Revenue   5,418        4,524        +19.8%
    Operating margin before
    depreciation & amortization                967          772        +25.3%
    % of revenue                              17.8%        17.1%
    Operating margin                           856          680        +25.9%
    % of revenue                              15.8%        15.0%
    Operating Income                           835          629        +32.8%
    Net Income attributable to the Groupe      526          403        +30.5%
    Earnings Per Share(1)                     2.60         1.99        +31.0%

    Diluted Earnings Per Share(2)             2.35         1.90        +23.0%

    Dividend proposed                         0.70         0.60

    Data from the Balance Sheet        December 31, December 31,
                                              2010         2009

    Total Assets                            14,941       12,730

    Equity attributable to the parent
    company                                  3,361        2,813

    (1) Earnings Per Share calculations based on an average of 202.1 million
        shares in 2010, 202.3 million in 2009, and 202.5 million in 2008.
    (2) Diluted Earnings Per Share calculations based on an average of 235.5
        million shares in 2010, 220.9 million shares in 2009 and 220.7
        million shares in 2008. These calculations include the stock options,
        free shares, equity warrants and the convertible bonds that dilute
        EPS. Stock options and warrants deemed to dilute EPS are those whose
        exercise price is below the average share price for the period. In
        2010, all these instruments diluted EPS.

    Analysis of key figures
    I. Business in 2010: Performance of all sectors in all regions

During this year of stabilization and then of recovery, Publicis Groupe achieved very good results in all sectors of business in all parts of the world.

- 2010 Revenue

Consolidated revenue totaled 5,418 million euro in 2010, up 19.8% from 4,524 million euro in 2009. The exchange rate impact was +242 million euro.

Organic growth was 8.3% for the year, with very strong growth in the last quarter. This is to be compared with 6.5% decrease in 2009. Razorfish is only factored into the calculation of organic growth from October 13, 2010.

All activities posted growth in 2010. Digital activities accounted for 28.0% of total revenue, compared with 22.4% during the previous period, and achieved much higher growth than the overall market.

Fast growing economies represented 22.7% of total revenue (if we factor out Razorfish, which contributed to the increase in revenue in the North America, high-growth economies accounted for 23.8% of total revenue).

The breakdown of consolidated revenue in 2010 is as follows: 32.6% from advertising (35% in 2009), 20.0% from media (21% in 2009), 47.4% from SAMS which included all digital activities (44% in 2009).

    - Breakdown of 2010 revenue by geography

    (million euro)       Revenue       Organic growth  2010/2009
                      2010    2009

    Europe           1,761    1,579         +6.0%      +11.5%
    North America    2,606    2,094         +9.9%      +24.4%
    Asia-Pacific       617      498         +7.0%      +23.8%
    Latin America      284      218        +13.7%      +30.4%
    Africa and         150      135         +4.8%      +12.3%
    Middle East

    Total            5,418    4,524         +8.3%      +19.8%

All regions without exception posted growth in 2010.

Europe, after being severely affected in 2009, especially in the south, returned to growth at a rate of 6.0%. Almost every country in Western Europe achieved positive figures, with France turning in the best performance at +11.2%. Northern Europe improved but was still slightly negative, while southern Europe is back posting positive growth. Eastern Europe and Russia posted 7.2% growth.

North America achieved a remarkable turnaround, posting growth of 9.9% in 2010, after strong resilience in 2009 thanks to the high contribution of digital services to the region's revenue. This growth was largely shored up by the strong performance of digital business which accounted for 42.6% of the region's revenue in 2010.

Asia-Pacific also posted a significant recovery, and while the performances of individual countries are quite contrasted, the vast majority of countries achieved positive growth.

All the Latin American countries generated strong growth in 2010 (e.g. Mexico, Argentina, Venezuela, Colombia).

The Africa and Middle East region was back to positive growth in 2010 after being severely affected by the financial crisis in Dubai.

- Q4 2010 Revenue : Exceptional Organic Growth of 12.5%

Consolidated revenue in Q4 2010 was 1,560 million euro, i.e. a 23.0% increase over the 1,268 million for the corresponding period in 2009 (the exchange rate impact was +97 million euro). For the record, organic growth was 3.1%, 7.1% and 9.2% in the 1st, 2nd and 3rd quarters, respectively.

    - Breakdown of Q4 2010 Revenue by Geography

    (million euro)              Revenue        Organic growth  2010/2009
                          Q4 2010    Q4 2009

    Europe                   556        483         +11.3%       +15.1%
    North America            683        545         +14.0%       +25.2%
    Asia-Pacific             180        146          +6.4%       +23.1%
    Latin America             87         51         +22.1%       +70.9%
    Africa and Middle East    54         43         +15.3%       +26.4%

    Total                  1.560      1.268          12.5%        23.0%

Growth in Q4 2010 was outstanding in almost every country and region of the world. This performance is consistent with the ongoing improvement observed quarter after quarter, and reflects the strength of the Groupe's activities in all market sectors throughout the whole world.

Operating margin

Operating margin before depreciation and amortization was 967 million euro in 2010, a 25.3% increase from 772 million euro in 2009.

Operating margin was 856 million euro, up 25.9% by comparison with 2009.

Personnel expenses rose 19.0% from 2,812 million in 2009 to 3,346 million euro in 2010 representing 61.8% of consolidated revenue. Given the return of growth, the pace of recruitment had to be stepped up. Serious efforts were made to limit the fixed component of personnel costs, and this was successfully achieved during this year of redeployment and growth.

Thanks to the results posted by the Groupe and the efforts made by staff, it will be possible to pay performance-related bonuses normally.

Other operating expenses totaled 1,105 million euro, up 17.6% from 2009, mainly due to higher commercial costs, increased travel expenses and higher depreciation and amortization, though administrative costs fell as a result of the continued emphasis on cost optimization in line with the Shared Services Centers program.

Operating margin rate was 15.8% in 2010. This improved percentage margin compared to 2009 is a reflection of the Groupe's strong revenue growth, especially in the last quarter and more particularly in December, and does factor in Razorfish integration costs.

In addition, the cost of restructuring and other structural operations in 2010 alone stood at 49 million euro, i.e. 31 million euro less than in 2009.

Rigorous cost management across the Groupe, irrespective of revenue fluctuations, is undeniably a competitive strength and enables us to simultaneously absorb the cost of integrating various acquisitions and speed up the roll-out of digital services throughout the world.

Net income

After net financial expenses of 76 million euros, tax charges of 216 million, profits of entities accounted for by the equity method totaling 8 million and minority interests of 25 million, net income attributable to the Groupe amounted to 526 million euros for 2010 compared with 403 million in 2009 i.e. a 30.5% increase.

Free Cash Flow

The Groupe's free cash flow, excluding changes in working capital requirements, rose 23% to 646 million euro.

Net debt

Net financial debt was reduced by 499 million euro, with the situation moving from net debt of 393 million euro at year-end 2009 to a positive cash situation of 106 million euro at year-end 2010. This demonstrates the marked improvement in cash flow from operations.

This debt reduction completely wiped out the net debt, compared with a Debt/Equity ratio of 0.14 at the end of 2009. The Groupe's average net debt in 2010 was reduced by over 300 million euro, i.e. down from 929 million euro in 2009 to 608 million euro in 2010.

Importantly, the Groupe's available liquidity position was further improved by comparison with December 31, 2009, rising from 3,968 million euro to 4,531 million euro at the end of 2010 (4,319 million when only committed facilities were taken into account).

Shareholders' equity

Consolidated shareholders' equity, including minority interests, rose from 2, 838 million euros on December 31, 2009 to 3,382 million euros on December 31, 2010.


A dividend of 0.70 euro per share will be proposed and -subject to Shareholders' approval at the June 7, 2011 AGM- payable on July 5, 2011.

The Groupe in 2010

Since 2004, Publicis Groupe has held the Gunn Report number one spot for Creative Performance. In its classification of advertising networks that have received the most awards, our networks are ranked 4th (Leo Burnett), 8th (Saatchi & Saatchi), 12th (Publicis), and 14th (BBH).

    - Publicis Worldwide came second overall at the Eurobest festival,
      with a total of 22 awards.
    - PHCG was named the best healthcare network in the USA by Advertising
    - Kekst & Company (MSLGROUP) was voted Corporate & Financial agency of
      the decade by The Holmes Report.
    - Leo Burnett had an outstanding year, taking "network of the year"
      awards at the Young Guns Festival, International Andy Awards, Cristal
      Awards, Kinsale Shark Awards and New York International Festival.


Publicis Groupe entities took top prizes in all the major global industry festivals, particularly the ADDY Awards, Cannes Lions International Advertising Festival, CLIO, Cresta, D&AD, Dubai Lynx Festival, Effie Awards, Eurobest, Festival of Media Awards, FIAP, Golden Drum, IPA Effectiveness Awards, M&M Awards, MM&M Awards, New York Festivals, Spikes, The One Show, and The One Show Interactive.

Our entities also received numerous awards at local festivals including the American Advertising Federation (AAF) Awards, Anvil Awards, Aspid Awards, Association of National Advertisers (ANA) Awards, BTA Craft Awards, CAANZ Awards, China Advertising Annual Awarding Ceremony, CLIO Healthcare Awards, Creative Circle, Cristal, El Sol Iberoamerican Festival of Advertising Communication, Epica, European Excellence Awards, Hatch Awards, HSMAI Adrian Awards, International Business Awards, Internationalist Awards, Internet Advertising Competition (IAC) Awards, Kinsale Shark Awards, Latin Spots, London International Awards, Media Federation of Australia (MFA) Awards, Mena Cristal Awards, MIXX Awards, Mobi Awards, OMMA Awards, PMAA Dragons, PRSA Del Oro Awards, Quill Awards (IABC), REGGIE Awards, Rx Club Show, SABRE Awards, Singapore Media Awards, and Webby Awards.

Grand Prix

At the 2010 Cannes Lions Festival, Publicis Groupe took two Grand Prix (Del Campo/Nazca Saatchi & Saatchi, Buenos Aires for Andes Beer, and Leo Burnett Sydney for Canon) and 116 Lions, including 24 gold, 39 silver and 51 bronze. At the 2010 Clio Awards, Publicis Groupe received 33 prizes, including 1 Grand Clio (Publicis Mojo, Walsh Bay for James Boag's Draught), 4 gold, 16 silver and 12 bronze.

Other Grand Prix included the Grand Prix at the New York Festivals for Duval Guillaume Antwerp and Touring Mobilis, the Grand Prix at the Dubai Lynx Festival for SMG Dubai and GM Chevrolet, the Grand Prix at Spikes for Starcom New Zealand and the Yellow Pages, the Grand Prix at the Media Federation Awards for Starcom Australia and Mars Pedigree, the Grand Prix at the International Digital Awards for Starcom Netherlands and Samsung, the Prix "Grand Cristal" for Publicis Conseil and PMU, and a Grand Effie for Leo Burnett and Detroit Publics Schools.

Agency of the Year Awards

Furthermore, various Publicis Groupe agencies received "Agency of the Year" awards in countries all over the world (Argentina, Australia, Belgium, China, Ecuador, USA, France, Porto Rico, UK, Russia, Singapore (Southeast Asia region), Slovakia, Slovenia. The award winners included Badillo Nazca Saatchi & Saatchi, BBH London, Conill, Del Campo Nazca Saatchi & Saatchi, Duval Guillaume Antwerp-Modem, Leo Burnett Moscow, Leo Burnett Sydney, Phonevalley, Publicis Slovenia, Publicitas Nazca Saatchi & Saatchi, Saatchi & Saatchi Los Angeles, Saatchi & Saatchi Slovakia, Saatchi & Saatchi X, and ZenithOptimedia UK.


Among the important events of 2010 was the special stress laid on skills, including the Groupe's talent review (performance analysis, examination of succession plans) and continuation of the training scheme including three EDP (Executive Development Program) sessions in America, Europe and Asia for high-potential managers from all the networks.

In addition, Publicis Groupe extended the reach of the "50 free shares" program by rolling out the plan in the USA following the French roll-out in 2009. Furthermore, the LTIP (Long-Term Incentive Plan) resumed in 2010 after a two-year break.

Social responsibility and sustainable development

Publicis Groupe has demonstrated its continuing commitment to social and environmental responsibility by publishing a CSR report compliant with GRI standards and carrying out a carbon audit at the Groupe level. For the record, the action plan is organized along 4 major lines with the aim of bringing about simultaneous improvements in all these sectors:

    - Corporate: strengthen concrete actions in favor of employees:
      training, diversity, incentives. The Publicis Groupe Diversity Council
      in the United States has continued to promote and co-ordinate the
      actions undertaken by the networks to encourage all forms of diversity.

    - Social: continue to participate actively in the community, with
      schools, universities and professional organizations. Continue to
      support worthwhile causes through pro bono campaigns.

    - Governance/Economy: strengthen the application of the "Janus" Corporate
      Policy Code, take account of new ethical issues in our professions,
      improve our CSR reporting, etc.

    - Environment: reduce the Groupe's footprint.

II. Cost control

Operational management within the Groupe continued to focus on growth and enhanced profitability, with special emphasis as usual on costs:

    - on one hand to rigorously manage the need for extra talent arising
      from the advertising sector's return to growth and the development of
      digital services,

    - on the other hand to continue with the implementation of the Horizon
      plan. The Shared-Services Centers (SSC) deployment plan continued
      throughout the year on all continents and the establishment of regional
      platforms (commenced in America and South-East Asia in 2009) has been a
      source of satisfaction. The Americas platform, which will serve the
      American continent, is nearing completion. The property consolidation
      programs were implemented very actively in the Groupe's main markets in
      2010 (USA, UK, Germany, France, Italy, Spain, Poland, Australia,
      Argentina, etc.) as were the global and regional procurement programs
      aimed at Groupe expense items and production costs.

The Groupe continues to implement its ERP system, thanks to the integration of a large number of agencies using the Shared-Services Centers and the standardization of common processes. Once this project is up and running, it will substantially reduce operating costs in the years to come.

III. New Business: Net gains of 5.9 billion dollars

Publicis Groupe made net gains of New Business worth 5.9 billion US dollars during the year: clear proof of the attractiveness of its offering (see list in appendix).

IV. Acquisitions

During the year, Publicis Groupe made several acquisitions in various parts of the world and took a minority stake in Taterka Comunicacoes, a Brazilian advertising agency based in Sao Paulo and covering 18 countries in Latin America. All these transactions fall under Publicis Groupe's policy of continuing to expand its digital business while reinforcing its presence in high-growth countries, healthcare and public relations.

    - Acquisition in the digital sector: AG2, one of Brazil's top digital
      and interactive agencies, specialized in economic intelligence and
      bringing new skills in the field of interactive brand management.

    - Acquisitions in the healthcare communications field:

      - In-Sync, based in Toronto, an agency specialized in healthcare
        communications and market surveys;

      - Resolute Communications, a London-based healthcare communications
        agency with operations in New York as well. Resolute Communications
        provides healthcare communications programs that encompass strategic
        advisory services, medical training and public relations. Resolute
        joined Publicis Life Brands in London;

      - Digital District, a German-based agency with specialized skills
        in the definition and roll-out of communication strategies;

      - Healthcare Consulting, acquired in December. Now Publicis Healthcare
        Consulting, this Paris-based agency with operations in New York
        offers a broad range of advisory solutions in several fields of
        expertise such as access to markets, promotions, distribution, new
        technologies, the emerging markets, capitalizing on research,
        industrial transfers and new industry players.

    - Acquisitions in the public relations business, targeting essentially
      high-growth economies:

      - 20:20 Media and 2020Social, two agencies specialized in public
        relations and social media in India. 20:20 Media is the leading
        agency for clients in the field of technology communications, an
        area in which it has played a pioneering role. 2020Social brings us
        the expertise of India's first agency to specialize in strategic
        advisory services in social media. This acquisition enabled the
        Groupe to launch MSLGROUP India which is now the leading
        communications network specializing in public relations and the
        social media.

      - Eastwei Relations in China. This PR and strategic consulting
        business - which boasts tools, processes and proprietary software
        packages that are specific to the management of strategic
        communications campaigns in the Chinese market - has been renamed
        Eastwei MSL and is now part of the MSLGROUP network.

These two acquisitions should re-energize the know-how of MSLGROUP, which is the main specialized communications, PR and events network in Asia.

      - Still in the PR field, Publicis Groupe consolidated its stake in
        Andreoli MS&L in Brazil, thus becoming the majority shareholder in
        one of the five biggest multidisciplinary PR agencies in Brazil,
        setting up a reference platform for MSLGROUP in South America.

    - Acquisitions in the domain of integrated communications

      - the G4 agency: Beijing-headquartered G4 provides integrated
        communications solutions including advertising, design and consulting
        services on behalf of Nestle in China. This agency, now known as
        Publicis G4, has taken on Publicis Beijing's Nestle team to accompany
        this major client more extensively throughout China.

      - W&K Beijing Advertising Co., in China: The Groupe has acquired the
        remainder of the capital, and this subsidiary is now wholly-owned. It
        has been renamed Leo Burnett Beijing Communications Co. Ltd., and
        contributes to Leo Burnett's expansion in the Beijing market.

      - Talent Group, in Brazil: acquisition of a 49% stake in Talent Group,
        one of the country's biggest advertising firms, with the option of
        becoming majority shareholder at a later stage. Talent Group comprises
        two Sao-Paulo-based agencies: Talent and QG. The group provides the
        full range of media and below-the-line communications services,
        offers training courses for sales teams and field staff, operates in
        incentive programs, promotion and activation, and is committed to
        developing its digital communications.

      - Finally, in late November, Publicis Groupe acquired three agencies in
        Romania. These long-standing affiliates (Publicis Roumanie, Focus
        Advertising and Publicis Events) will be merged into Grupul Publicis
        Communication Services Bucarest. The new entity will be a
        full-services company in communications, advertising, brand strategy,
        creation, sales promotion, events marketing and digital services.

The Groupe's acquisitions have been very focused in terms of business area and geographic region in order to meet customers' new needs, while devising the solutions expected by consumers and boosting the Groupe's growth.

V. Finance

A noteworthy event early in 2010 was the accelerated redemption, in January, of part of the Oceane 2018 issue still in circulation. According to the Oceane 2018 contract, all bond-holders could request early redemption of all or part of their Oceanes at a unit price of 45.19 euro. On January 18, 2010, 617,985 Oceanes were redeemed in this way for a total sum of 28 million euro.

The number of these Oceane bonds still in circulation after that date is 2,624,538, i.e. 14.9% of the original issue which totaled 17,624,521.

Furthermore, on January 8, 2010, following the authorization granted by the Combined Ordinary and Extraordinary General Meeting held on June 9, 2009, Publicis Groupe SA signed a contract with an accredited intermediary with a view to acquiring 2.7 million Publicis Groupe shares. The program was authorized for a period of eighteen months starting from June 9, 2009; i.e. until December 8, 2010. 2,487,959 shares have been acquired through this program.

On May 10, 2010, Publicis Groupe repurchased from Dentsu Inc a block of 7,500,000 of its own shares held by SEP Dentsu-Badinter, for a total price of 218 million euro, i.e. 29 euro per share. These shares were immediately canceled.

VI. 2011: Recent events


Publicis Groupe has announced its intention to purchase, through a public takeover bid, all the shares in Chemistry, an independent integrated communications agency, for a consideration of approximately 14.45 million pounds Sterling. Chemistry's Board of Directors recently recommended that its shareholders tender their shares at a price of 37p per share, to be paid in cash.

Chemistry is one of the UK's leading agencies, and is specialized in integrated marketing services, particularly in digital. Its offering includes advertising communications, strategic consulting and digital marketing, direct marketing and promotional marketing.

Chemistry's Board of Directors has recommended that its shareholders tender their shares at a price of 37p per share, to be paid in cash.

New Business

The start of the year has been very active in terms of new business gains.

Since January 1, the Groupe is proud to count ADP, C&A China, Carl Zeiss Sports Optic, FNAC, Guerlain, Lenovo, Pages Jaunes and Sonic among its new clients.

VII. Outlook

The market trends anticipated since late 2009 materialized in 2010, and were then confirmed by the sharp recovery of the advertising market in all regions in the second half of the year, and more notably during an exceptional last quarter.

In this more buoyant market, Publicis Groupe achieved excellent results thanks to its positioning in digital services and its ever-increasing exposure in high-growth countries, these two growth drivers already accounting for close to half the Groupe's revenue.

The Groupe intends to continue to roll out its now well-established strategy based on two components: digital services, which continue to grow strongly thanks to the social networks and mobility, and high-growth markets.

The fact that the merits of this strategy have been proven suggests the Groupe should continue to invest in digital services, taking care to accelerate this expansion outside the USA. Another priority is to expand in high-growth countries as the Groupe plans to double the size of its business in China, while reinforcing its positions in India and Latin America.

Thanks to a very good volume of business and strict cost control, the Groupe succeeded in ending the year with a very robust financial situation.

The very satisfactory level of new business wins in 2010 bears witness to the Groupe's dynamic approach and strong presence alongside its clients, thus confirming its ability to reach its market-share targets. All these factors authorize the Groupe to envisage growth in excess of the current market estimations while continuing to improve its operating margins.

In the medium term the Groupe's goal is to derive 35% of its revenue from digital activities and 30% from high-growth markets. Publicis Groupe intends to focus its actions so as to reach these targets both by internal growth and targeted acquisitions. Almost two-thirds of its revenue will then be generated in high-growth sectors or countries.

<< Some information other than historic data contained in this document may constitute forward-looking statements or unaudited financial forecasts. This information is subject to risks and chance events that may lead to substantive changes in the eventual real data. These data are presented as known at the date of this press release and Publicis Groupe accepts no liability for their updating in the light of new events or any other reason, with the exception of applicable regulations. Publicis Groupe invites you to refer carefully to the information concerning factors liable to affect its business that is presented in its reference document submitted to the Financial Market Authorities. >>

About Publicis Groupe

Publicis Groupe [listed on the Euronext Paris Exchange - FR0000130577 - and part of the CAC 40 index] is the world's third largest communications group. With activities spanning 104 countries on five continents, Publicis Groupe employs approximately 49,000 professionals and offers local and international clients a complete range of advertising services through three global networks: Leo Burnett, Publicis, Saatchi & Saatchi, and numerous agencies including Fallon, 49%-owned Bartle Bogle Hegarty, and Kaplan Thaler Group. VivaKi combines digital and media expertise, allowing clients to connect with consumers in a holistic way, with Starcom MediaVest Group and ZenithOptimedia worldwide media networks; and interactive and digital marketing led by Digitas and Razorfish networks. VivaKi develops new services, tools, and next generation digital platforms. Publicis Groupe offers healthcare communications with Publicis Healthcare Communications Group (PHCG, the first global network in healthcare communications). And with MSLGROUP, one of the world's top five PR and Events networks, expertise ranges from corporate and financial communications to public relations and public affairs, branding, social media marketing and events.

    Web site: http://www.publicisgroupe.com


                                New Business 2010

                              USD 5.9 billion (net)

    Key wins

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), Zimmer (USA), Brickell (Brazil), Chrysler (Brazil), Whirlpool (Brazil), ConocoPhillips (USA), American Red Cross (USA), Cadillac (USA), Emerson (USA), Harley Davidson (USA), Intuit (USA), 1-800 Contacts (USA), Azul Linhas Aereas (USA), Itau (Brazil), Maphre (Brazil), M Dias Branco (Brazil), Mead Johnson (Brazil), Procter & Gamble (Brazil), Samsung (Brazil)


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

Leo Burnett

Chrysler (UK, Germany, Turkey, Japan, Brazil, Venezuela), 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), SFR (France), 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), Lenovo (Japan), Lindt & Sprungli (UK), British Film Institute (UK), P&G (UK), Samsung (Malaysia, Czech Republic, Thailand, Kazakhstan, India), Mc Donald's (Japan), Boon Rawd (Thailand), Oishi (Vietnam), ZDF (Germany), Vera Bradley (Japan), Merial (Japan), Innocent (UK), Travelocity (USA), Seek Think (Australia), FFSA -French Federation of Insurance Societies- (France), Milkmaid (India), Gruma (Mexico), Coca-Cola (Thailand, Columbia), Wines of Turkey (Turkey), Groupama (France), WWF (France), Moet Hennessy Diageo (France), VLCC Health Care Lanka (India), Commonwealth Bank (Indonesia), Airtricity (Ireland), Honda (Indonesia), Cruicer (Mexico), McDonald's (Philippines), Information Communication Technology Agency of Sri Lanka (ICTA), Mead Johnson (Thailand), Captain Coating (Thailand), Fathai Seasoning Powder (Thailand), Ziraat Bankasi Turkey), Covidien (Turkey), Miller (UK), Reliance Telcomm (India), United Overseas Bank (Singapore), Wataniya Telcomm (Sri Lanka), P&G/ Hard Surface Cleaners Brand Agency Leader Assignment, P&G/ Pampers Brand Agency Leader Assignment, Invesco (US & UK), Sealy (USA), White Wave (USA)


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), Brand South Africa (China), United Technologies Corporation (India), Fortis Healthcare (India), Nike (India), Tim Hortons (Canada), Schiesser (Germany), ICBC (France), L'Oreal for Women & Science (France), UPS (USA), Nestle (USA), eLab (USA), OCI (USA)

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 (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), Louvre Museum (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), Little Liushen (China), V-Guard (India), Procter & Gamble (Brazil), Microsoft (Romania), ALJ Group (Malaysia), Burger King (Singapore), Common Wadden Sea Secretariat / Wadden Sea Unesco World Heritage (Germany), CBID- China Business Intelligence (China), Aegis Global Academy (India), Nestle (Thailand), Yun He Soy Milk (China), Edenred (Italy), Renault Zero Emissioni (Italy), Zambon (Italy), Movi (Italy), U Mobile Malaysia (Malaysia), Amway (China), HP (China), Yu He Soy Milk (China), SuperB of Skoda (China), GDB brand TVC (China), Lucky Lotto of DJI Holding (China), The Hill of CMPD (China), CongDu of Kingold (China), Dinghu (China), Oenobiol (France), Ministry of Finance (France), Orange Challenge (France), Luxottica (France), Nestle (Ghana), Rider Levett Bucknall (UK), Edelweiss (Germany), Randstad (Germany), Orange Challenge (France), Orange Pro (France), Nestle (Mexico), Swiss Post (Switzerland), Air Asia (UK), Fresco (Italy), Bernina International (Switzerland), Subway Restaurants (New Zealand), Nestle (Singapore), PMU/digital (France), RATP (France), Paypal/digital (Brazil), Cleartrip (India), Haco Group of Thailand (Thailand), Virgin Unite (UK), LG/digital (Publicis Modem WW)


The Hollywood Reporter (USA ), Pattex (Germany), Home Depot (USA)

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), Harley-Davidson (India), CIBIL (India), Sony Playstation (and Sony Cyber-shot (Argentina with Conill/Latin America), Honda (Brazil), Procter & Gamble Digital Communications (Brazil), Chivas Regal (China), York Timbers (South Africa), Diageo Global Travel (UK), Tuffy (South Africa), LaForet Department Store (Japan), Electoral Commission (New Zealand), Coca-Cola (Argentina/ Latin-America), CartaSi (Italy), FMG (New Zealand), Record Bank (Belgium), Essent (Belgium), Pioneer Foods/Nulaid (South Africa), Dubai Global Energy Forum 2011 (UAE), Agorex (Argentina), Berlingske Media (Denmark), Danske Bank (Denmark), Gillette (Argentina), Healthy Weight Commitment Foundation (USA), Mead Johnson (Middle East), Mead Johnson/Enfamil (Netherlands - pan-Euro), Pacena beer (Argentina), Scotts (Canada), Timberland (Argentina), Toyota (Czech Republic/Slovakia, Denmark, Italy and Hungary), Vestas - S&S S (global)

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), Adidas (United Arab Emirates), Aflac (USA), Avon (USA), Kraft/Cadbury (global), American Egg Board (USA), GlaxoSmithKline (Europe), Westin (India), IDA (Ireland), ABN Amro (Netherlands), Singapore Navy, TMB Bank (Thailand), Comcast (USA), Darden Restaurants (USA, Canada) , Amar Remedies (India) , Yahoo (Taiwan), Cineworld (UK), Dreams (UK), 1-800 Contacts (USA), Best Buy (Poland), Harry Winston (Middle East, North Africa, India)

The Kaplan Thaler group

Aflac (USA), Shire (USA), Pfizer (additional brands) (USA)


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), BGL Group (UK), Travelocity (USA), Asia Pacific Breweries (Singapore), O2 (Europe), Orbitz (USA), Reckitt Benckiser (Poland), Canal + (Poland), Inco-Veritas (Poland), Triumph (Poland), Sonic (USA), Deutsche Post/DHL (Germany), CartaSi (Italy), Raiffeisen Bank (Russia), HTC (China), Sanofi-Aventis( France, Americas, Asia), Travelocity (USA), Pinnacle Foods (USA), Square Enix (USA)

                              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

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

    29/07/10   Publicis Groupe: First Half 2010 Results

    02/08/10   Publicis Groupe Pursues its Global Digital Expansion and
               Acquires AG2, Top Brazilian Interactive Agency

    09/09/10   Publicis Groupe and Lov Group Put an End to the Acquisition
               Project of a Stake in France Televisions Publicite

    01/10/10   Publicis Groupe to Acquire 20:20 Media, 2020Social in India
               and Establish MSLGROUP India - India's Leader in PR, Social
               Media and Specialty Communications Services

    06/10/10   Publicis Groupe Acquires a 49% Stake in the Talent Group in
               Brazil Further Strengthening its Foothold in the BRIC Markets

    21/10/10   Publicis Groupe Publishes 3rd Quarter 2010 Revenue

    17/11/10   Publicis Groupe Acquires Eastwei Relations in China

    29/11/10   Publicis Groupe Acquires Publicis Romania, Focus Advertising
               and Publicis Events Strengthening the Communications Offer on
               the Romanian Market

    13/12/10   Publicis Groupe Acquires Digital District

    16/12/10   Publicis Groupe Takes Majority Stake in Brazil's Andreoli MS&L

    20/12/10   Publicis Groupe Acquires Healthcare Consulting Creating a New
               Strategic Consulting Agency

    26/01/11   Publicis Groupe Proposes to Acquire Chemistry through a
               Recommended Cash Offer

    27/01/11   Publicis Groupe Increases its Stake in Wefcos - Veronique
               Morali Appointed Wefcos President

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


    Net financial debt (or net    Equals the long and short term financial
    debt):                        debt plus associated derivatives fair
                                  value, less cash and cash equivalent
    Average half-year net debt:   Yearly average of average monthly net debt

    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.

    Operating Margin:
                                  The operating margin is equal to the
                                  revenue after deduction of personnel
                                  expenses, other operating expenses
                                  (excluding non current income and
                                  expenses), depreciation and amortization
                                  (excluding intangible arising from

    Operating Margin rate:
                                  The operating margin rate (operating
                                  margin / revenue %) is a KPI followed by
                                  the Group in order to measure the
                                  performance of the cash-generating units
                                  and the Group.

    Revenue and Organic Growth Calculation

    (EUR Million)                         H1 2010  H2 2010 Q4 2010     2010

    2009 Revenue                           2,209    2,315   1,268     4,524
    Currency Impact                           55      187      97       242
    2009 Revenue at 2010 exchange rate(a)  2,264    2,502   1,365     4,766
    2010 Revenue before impact of
    acquisitions(1)(b)                     2,383    2,778   1,536     5,161
    Revenue from acquisitions                155      102      24       257
    2010 Revenue                           2,538    2,880   1,560     5,418
    Organic Growth(b/a)                     +5.3%   +11.0%   12.5%     +8.3%

    (1) Net of disposals
        Average Exchange rate Dec. 31, 2010 : 1 USD = 0.7551 EUR
        1 GBP = 1.1660 EUR

                                 Publicis Groupe
                              Consolidated accounts


    Consolidated Income Statement
    (in millions of euros)                      2010        2009        2008

    Revenue                                    5,418       4,524       4,704
    Personnel expenses                        (3,346)     (2,812)     (2,852)
    Other operating expenses                  (1,105)       (940)       (963)
    Operating margin before depreciation and
    amortization                                 967         772         889
    Depreciation and amortization expense       (111)        (92)       (104)
    (excluding intangibles arising from
    Operating margin                             856         680         785
    Amortization of intangibles arising from
    acquisitions                                 (34)        (30)        (29)
    Impairment                                    (1)        (28)        (13)
    Non-current income and expenses               14           7           8
    Operating income                             835         629         751
    Interest expense                             (81)        (73)       (110)
    Interest income                               16          12          29
    Cost of net financial debt                   (65)        (61)        (81)
    Other financial income and expenses          (11)         (9)          2
    Pre-tax Income of consolidated companies     759         559         672
    Income taxes                                (216)       (146)       (196)
    Net income of consolidated companies         543         413         476
    Share of profit of associates                  8           4           2
    Net income                                   551         417         478

    Of which:
    - Net income attributable to non-controlling
      interests (minority interests)              25          14          31
    - Net income attributable to equity
      holders of the parent (Group share)        526         403         447

    Per share data (in euros) - Net
    income attributable to equity
    holders of the parent
    Number of shares                     202,149,754 202,257,125 202,536,963
    Earnings per share                          2.60        1.99        2.21
    Number of shares - diluted           235,470,461 220,867,344 220,728,941
    Earnings per share - diluted                2.35        1.90        2.12

    Consolidated statement of comprehensive income

    (in millions of euros)                      2010        2009        2008

    Net income for the period (a)                551         417         478
    Other comprehensive income
    - Revaluation of available-for-sale
      investments                                 12          12         (15)
    - Actuarial gains and losses on defined
      benefit plans                              (10)         (4)        (45)
    - Cumulative translation adjustment          297         (59)         (5)
    - Deferred taxes on other comprehensive
      income                                       4           1          16
    Other comprehensive income for the
    period (b)                                   303         (50)        (49)

    Total comprehensive income for the
    period (a) + (b)                             854         367         429
    Of which:
    - Attributable to non-controlling
      interests (minority interests)              33          17          28
    - Attributable to equity holders of the
      parent (Group share)                       821         350         401

    Consolidated Balance Sheet

    (in millions of euros)                  December    December    December
                                            31, 2010    31, 2009    31, 2008
    Goodwill, net                              4,278       3,928       3,693
    Intangible assets, net                       856         835         794
    Property and equipment, net                  464         458         480
    Deferred tax assets                           75          73          91
    Investments in associates                    140          49          44
    Other financial assets                       113          94         101
    Non-current assets                         5,926       5,437       5,203
    Inventory and work in progress               326         290         319
    Accounts receivable                        5,953       4,875       4,843
    Other receivables and current assets         572         548         628
    Cash and cash equivalents                  2,164       1,580         867
    Current assets                             9,015       7,293       6,657

    Total assets                              14,941      12,730      11,860

    Liabilities and shareholders' equity
    Share capital                                 77          79          78
    Additional paid-in capital and
    retained earnings                          3,284       2,734       2,242
    Equity attributable to holders of the
    parent company                             3,361       2,813       2,320
    Non-controlling interests (minority
    interests)                                    21          25          30
    Total equity                               3,382       2,838       2,350
    Long-term financial debt (more than 1
    year)                                      1,783       1,796       1,323
    Deferred tax liabilities                     219         214         232
    Long-term provisions                         458         449         459
    Non-current liabilities                    2,460       2,459       2,014
    Accounts payable                           7,216       5,835       5,802
    Short-term financial debt (less than
    1 year)                                      290         214         218
    Income taxes payable                          39          63          68
    Short-term provisions                        118         100         110
    Other creditors and current
    liabilities                                1,436       1,221       1,298
    Current liabilities                        9,099       7,433       7,496

    Total liabilities and equity              14,941      12,730      11,860

    Consolidated Cash Flow Statement

    (in millions of euros)                           2010    2009    2008
    Cash flow from operating activities
    Net income                                        551     417     478
    Neutralization of non-cash income and
    Income tax                                        216     146     196
    Cost of net financial debt                         65      61      81
    Capital (gains) losses on disposals (before tax)  (14)    (10)     (2)

    Depreciation, amortization and impairment on
    property and equipment and intangible assets      146     150     146
    Non-cash expenses on stock options and similar
    items                                              26      24       9
    Other non-cash income and expenses                  6      11       8
    Share in net income of associates                  (8)     (4)     (2)
    Dividends received from associates                 14       9      10
    Taxes paid                                       (219)   (157)   (169)
    Interest paid                                     (76)    (75)    (89)
    Interest received                                  17      16      37
    Change in working capital requirements (1)        287      59      12
    Net cash provided by (used in) operating
    activities (I)                                  1,011     647     715
    Cash flows from investing activities
    Purchases of property and equipment and
    intangible assets                                (103)    (74)    (92)
    Proceeds from sale of property and equipment
    and intangible assets                              25      10      28
    Purchases of investments and other financial
    assets, net                                         5      10      (1)
    Acquisitions of subsidiaries                     (166)   (273)   (155)
    Disposals of subsidiaries                           1       1       -
    Net cash flows provided by (used in) investing
    activities (II)                                  (238)   (326)   (220)
    Cash flows from financing activities
    Capital increase                                    -       -       1
    Dividends paid to parent company shareholders    (107)   (107)   (106)
    Dividends paid to non-controlling interests       (21)    (26)    (24)
    Cash received on new borrowings                     7     744     482
    Reimbursement of borrowings                       (52)   (108) (1,128)
    Net purchases of non-controlling interests(2)      (9)    (25)    (17)
    Net (purchases)/sales of treasury shares and
    warrants                                         (198)      5    (174)
    Net cash flows provided by (used in) financing
    activities (III)                                 (380)    483    (967)
    Impact of exchange rate fluctuations (IV)         188     (94)     19
    Net change in consolidated cash flows (I + II
    + III + IV)                                       581     710    (452)
    Cash and cash equivalents at January 1          1,580     867   1,313
    Bank overdrafts at January 1                      (33)    (30)    (24)
    Net cash and cash equivalents at beginning of
    period (V)                                      1,547     837   1,289

    Cash and cash equivalents at December 31        2,164   1,580     867
    Bank overdrafts at December 31                    (36)    (33)    (30)
    Net cash and cash equivalents at end of year
    (VI)                                            2,128   1,547     837
    Net change in cash and cash equivalents (VI - V)  581     710    (452)

    (1) Breakdown of change in working capital

    Change in inventory and work in progress          (14)     29      64
    Change in accounts receivable and other
    receivables                                      (855)    160    (110)
    Change in accounts payable, other creditors
    and provisions                                   1156    (130)     58
    Change in working capital requirements            287      59      12

    (2) In accordance with the application of revised IFRS 3, net purchases
        of non-controlling interests, which were previously shown under
        investing activities, are presently classified under financing

    Statement of Changes in Consolidated Shareholder's Equity

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

    183,600,411 December 31, 2007       81      2,742    (436)        (313)
                Net income                                447
                Fair value
                adjustments to
                Actuarial gains
                and losses on
                defined benefit
                plans(1)                                  (29)
                adjustments                                             (2)
                Total of other
                income                   -          -     (29)          (2)
                Total of income
                and expenses for
                the period               -          -     418           (2)
    1,633,629   Publicis Groupe SA
                capital increase
                and cancellation
                of treasury shares      (3)      (189)    192
                Dividends                                (106)
                compensation(1)                             8
                interest on ORANEs                         (7)
    (6,379,739) Purchases/sales of
                treasury shares                          (174)
    178,854,301 December 31, 2008       78      2,553    (105)        (315)
                Net income                                403
                Fair value
                adjustments to
                Actuarial gains
                and losses on
                defined benefit
                plans(1)                                   (3)
                adjustments                                            (62)
                Total of other
                income                   -          -      (3)         (62)
                Total of income
                and expenses for
                the period               -          -     400          (62)
    1,562,129   Publicis Groupe SA
                capital increase         1         47     (48)
                Equity component
                of OCEANE 2014                             49
                Dividends                                (107)
                compensation(1)                            26
                interest on ORANEs                         (6)
                Effect of
                acquisitions and
                commitments to buy
    6,752,338   Purchases/sales of
                treasury shares                           181
    187,168,768 December 31, 2009       79       2,600    390         (377)
                Net income                                526
                Fair value
                adjustments to
                Actuarial gains
                and losses on
                defined benefit
                plans(1)                                   (6)
                adjustments                                            289
                Total of other
                income                   -           -     (6)         289
                Total of income
                and expenses for
                the period               -           -    520          289
    (5,937,871) Publicis Groupe SA
                capital increase
                and cancellation
                of treasury shares      (2)       (168)   (48)
                Dividends                                (107)
                compensation(1)                            39
                interest on ORANEs                         (7)
                Effect of
                acquisitions and
                commitments to buy
                out non-controlling
    1,140,173   Purchases/sales of
                treasury shares                            20
    182,371,070 December 31, 2010       77       2,432    807          (88)

    Table cont'd...

    Number of   (in millions of     Fair      Equity   Non-controlling  Total
    outstanding  euros)            value  attributable     interests   equity
    shares                       reserve  to holders       (minority
                                              of the       interests)

    183,600,411 December 31, 2007    124       2,198            27     2,225
                Net income                       447            31       478
                Fair value
                adjustments to
                investments          (15)        (15)                    (15)
                Actuarial gains
                and losses on
                defined benefit
                plans(1)                         (29)                    (29)
                adjustments                       (2)           (3)       (5)
                Total of other
                income               (15)        (46)           (3)      (49)
                Total of income
                and expenses for
                the period           (15)        401            28       429
    1,633,629   Publicis Groupe SA
                capital increase
                and cancellation
                of treasury shares                 -                       -
                Dividends                       (106)          (25)     (131)
                compensation(1)                    8                       8
                interest on ORANEs                (7)                     (7)
    (6,379,739) Purchases/sales of
                treasury shares                 (174)                   (174)
    178,854,301 December 31, 2008    109       2,320            30     2,350
                Net income                       403            14       417
                Fair value
                adjustments to
                investments           12          12                      12
                Actuarial gains
                and losses on
                defined benefit
                plans(1)                          (3)                     (3)
                adjustments                      (62)            3       (59)
                Total of other
                income                12         (53)            3       (50)
                Total of income
                and expenses for
                the period            12         350            17       367
    1,562,129   Publicis Groupe SA
                capital increase                   -                       -

                Equity component
                of OCEANE 2014                    49                      49
                Dividends                       (107)          (26)     (133)
                compensation(1)                   26                      26
                interest on ORANEs                (6)                     (6)
                Effect of
                acquisitions and
                commitments to buy
                out non-controlling
                interests                          -             4         4
    6,752,338   Purchases/sales of
                treasury shares                  181                     181
    187,168,768 December 31, 2009     121      2,813            25     2,838
                Net income                       526            25       551
                Fair value
                adjustments to
                investments            12         12                      12
                Actuarial gains
                and losses on
                defined benefit
                plans(1)                          (6)                     (6)
                adjustments                      289             8       297
                Total of other
                income                 12        295             8       303
                Total of income
                and expenses for
                the period             12        821            33       854
    (5,937,871) Publicis Groupe SA
                capital increase
                and cancellation
                of treasury shares              (218)                   (218)
                Dividends                       (107)          (21)     (128)
                compensation(1)                   39                      39
                interest on ORANEs                (7)                     (7)
                Effect of
                acquisitions and
                commitments to buy
                out non-controlling
                interests                          -           (16)      (16)
    1,140,173   Purchases/sales of
                treasury shares                   20                      20
    182,371,070 December 31, 2010     133      3,361            21     3,382

    (1) The actuarial gains and losses on defined benefit plans and the
        share-based compensation are reported with the related deferred tax

    Earnings per Share

    Earnings per share and diluted earnings per share

    (in millions of euros, except             2010         2009         2008
    for share data)

    Net income used for the
    calculation of earnings per
    Net income attributable to
    equity holders of the parent     a         526          403          447
    Impact of dilutive instruments:
    - Savings in financial expenses
      related to the conversion of
      debt instruments, net of
      tax(1)                                    27           16           20
    Net income attributable to
    equity holders of the parent -
    diluted                          b         553          419          467
    Number of shares used to
    calculate earnings per share
    Average number of shares that
    make up the share capital          192,754,345  196,020,983  196,277,148
    Treasury shares to be deducted
    (average for the year)             (10,912,268) (15,633,664) (16,651,410)
    Shares to be issued to redeem
    the ORANEs                          20,307,677   21,869,806   22,911,225
    Average number of shares used
    for the calculation              c 202,149,754  202,257,125  202,536,963
    Impact of dilutive instruments:
    - Free shares and dilutive
      stock options (1)                  4,389,680    1,770,247      137,404
    - Warrants (1)                         480,327            -            -
    - Shares resulting from the
      conversion of convertible
      bonds (2)                         28,450,700   16,839,972   18,054,574
    Number of shares - diluted
    (in euros)                       d 235,470,461  220,867,344  220,728,941
    Earnings per share              a/c       2.60         1.99         2.21

    Earnings per share - diluted    b/d       2.35         1.90         2.12

    (1) Only stock options and warrants with a dilutive impact, i.e. whose
        exercise price is lower than the average share price of the period
        are taken into consideration in the calculation. In 2010, all of the
        stock options and warrants outstanding at year end had a dilutive
    (2) Over the three years 2010, 2009 and 2008, all of the OCEANES had a
        dilutive impact and are therefore factored into the calculation of
        diluted EPS.

    Headline earnings per share (basic and diluted)

    (in millions of euros, except             2010         2009         2008
    for share data)

    Net income used to calculate
    Headline(1) earnings per share
    Net income attributable to
    equity holders of the parent               526          403          447
    Items excluded:
    - Amortization of intangibles
      from acquisitions, net of tax             21           18           18
    - Impairment, net of tax                     1           27           11
    - Net capital gains (losses) on
      disposals of land, buildings
      and long-term real estate
      leases                                   (12)          (6)          (5)
    - Deferred tax assets linked to
      the OCEANE 2014 (2)                        -          (23)           -
    Headline net income
    attributable to equity holders
    of the parent                    e         536          419          471
    Impact of dilutive instruments:
    - Savings in financial expenses             27           16           20
    linked to the conversion of
    debt instruments, net of tax
    Headline net income
    attributable to equity holders
    of the parent - diluted          f         563          435          491

    Number of shares used to
    calculate earnings per share
    Average number of shares that
    make up the share capital          192,754,345  196,020,983  196,277,148
    Treasury shares to be deducted
    (average for the year)             (10,912,268) (15,633,664) (16,651,410)
    Shares to be issued to redeem
    the ORANEs                          20,307,677   21,869,806   22,911,225
    Average number of shares used
    for the calculation              c 202,149,754  202,257,125  202,536,963
    Impact of dilutive instruments:
    - Free shares and dilutive
      stock options                      4,389,680    1,770,247      137,404
    - Warrants                             480,327            -            -
    - Shares resulting from the
      conversion of the convertible
      bond                              28,450,700   16,839,972   18,054,574
    Number of shares - diluted
    (in euros)                       d 235,470,461  220,867,344  220,728,941
    Headline earnings per share (1) e/c       2.65         2.07         2.33

    Headline earnings per share -
    diluted (1)                     f/d       2.39         1.97         2.22

    (1) Earnings per share before amortization of intangibles
        arising from acquisitions, impairment, capital gains (losses) on
        disposal of land and buildings, and the deferred tax asset linked to
        the OCEANE 2014 bond.

    (2) Impact of the deferred tax asset recognized in the amount of the
        deferred tax liability booked on the equity portion of the OCEANE
        2014 bond.

SOURCE Publicis Groupe

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