2013 first half results - havas · pdf file2013 first half results ... havas does not intend,...

21
2013 FIRST HALF RESULTS Friday, August 30, 2013

Upload: vohanh

Post on 20-Mar-2018

215 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

2013 FIRST HALF RESULTS Friday, August 30, 2013

Page 2: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

2

INTRODUCTORY MATERS

2013 FIRST HALF RESULTS

Forward-Looking Information This document contains certain forward-looking statements which speak only as of the date on which they are made. Forward-looking statements relate to projections, anticipated events or trends, future plans and strategies, and reflect Havas’ current views about future events. They are therefore subject to inherent risks and uncertainties that may cause Havas’ actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially from expected results include changes in the global economic environment or in the business environment, and in factors such as competition and market regulation. For more information regarding risk factors relevant to Havas, please see Havas’ filings with the Autorité des Marchés Financiers (documents in French) and, up to October 2006, with the U.S. Securities and Exchange Commission (documents in English only). Havas does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise. Net New Business Net new business represents the estimated annual advertising budgets for new business wins (which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients) less the estimated annual advertising budgets for lost accounts. Havas' management uses net new business as a measurement of the effectiveness of its client development and retention efforts. Net new business is not an accurate predictor of future revenues, since what constitutes new business or lost business is subject to differing judgments, the amounts associated with individual business wins and losses depend on estimated client budgets, clients may not spend as much as they budget, the timing of budgeted expenditures is uncertain, and the amount of budgeted expenditures that translate into revenues depends on the nature of the expenditures and the applicable fee structures. In addition, Havas' guidelines for determining the amount of new business wins and lost business may differ from those employed by other companies. The average net debt (quarterly, semi-annually and annually) is calculated as the difference between the structured gross debt under IFRS (OBSAAR, Eurobond, used credit lines, etc…) and the cash in bank and cash equivalents measured on a daily basis for the main countries integrated in the International cashpool; for the other countries, the average net debt taken into account is the monthly average net debt. The new definition excludes earn-out and buy-out obligations and includes blocked current accounts relating to employee profit-sharing.

Page 3: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

3

H1 2013 KEY FIGURES

•  Income from Operations reached €109M in H1 2013 against €99M in H1 2012, increasing by +10%.

•  Record Income from operations margin at 13.0% (vs 11.9% H1 2012) and operating margin was 12.0%

•  Revenue:

€451M in Q2 2013, +1.7% in terms of organic growth

€837M in H1 2013, increasing by +1% and by +0.5% in terms of organic growth (at constant exchange rates and scope)

•  Emerging markets represent 16% of total revenue

•  Digital accounts for 25% of total revenue

•  Net income, Group share of €58M in H1 2013, up 3% negatively impacted by the rise of corporate tax rates

•  Earnings per share was 15 cents (€) in H1 2013 vs 13 cents (€) in H1 2012, up 15%

•  Net debt of €372M as of June 30, 2013 vs €444M as of June 30, 2012. Average net debt (1)

was €239M in H1 2013 vs €80M in H1 2012

(1) Definition on page 2

2013 FIRST HALF RESULTS

Page 4: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

4

REBOUND OF ORGANIC GROWTH IN Q2 2013

Organic growth Q1 Q2 H1 2013 2013 2013

EUROPE -0.3% 0.8% 0.3% Of which

France 1.2% 3.3% 2.3% UK 0.7% 2.0% 1.4%

Rest of Europe -2.4% -2.1% -2.2%

NORTH AMERICA -3.9% 0.2% -1.8%

REST OF THE WORLD 5.1% 7.2% 6.2% Of which

Asia Pacific & Africa 1.0% -2.6% -0.9% Latin America 8.6% 15.1% 12.3%

TOTAL -0.9% 1.7% 0.5%

2013 FIRST HALF RESULTS

Page 5: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

MAJOR WINS

2013 FIRST HALF RESULTS 5

Page 6: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

KEY FACTS H1 2013 CREATIVE, MEDIA & DIGITAL INTEGRATED

6

NEW HEADQUARTERS 200 HUDSON STREET NEW YORK

2013 FIRST HALF RESULTS

Page 7: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

KEY FACTS H1 2013

7 2013 FIRST HALF RESULTS

ACQUISITIONS / START UPS

2006 H1 2013

9%

25%

DIGITAL SHARE IN REVENUE

Page 8: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

2013 FIRST HALF RESULTS 8

KEY FACTS H1 2013 TALENT

Natasha Murray Managing

Director at Havas Media U.K.

Dorothy Gemmell

President Havas Life, New York, prev. WebMD

Andrew Benett Global President Havas Worldwide

Robert LePlae CEO Arnold Worldwide

Patti Clifford Chief Talent

Officer, Havas Creative

Dominique Delport Chairman Havas Media

France, Global Managing Director

Havas Media Group

Raphaël de Andreis

CEO Havas Media France

Elliot Seaborn Executive Director

Arnold

Carola Salvato GM of Havas Life

Italy

Matt Weiss CMO

Havas Worldwide

Darren Moran Executive

Creative Director Havas

Worldwide NY

Tim Maleeny Chief Strategy Officer Havas Worldwide NY

Agathe Bousquet

PDG Havas Worldwide Paris

Filip Nilsson, Executive Creative

Director BETC

Page 9: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

KEY FACTS H1 2013 DIGITAL TALENT

9

Angela Wei Chief Digital Officer Arnold prev. Time

Inc.

Matt Howell Global Chief Digital

Officer Havas Creative

Laura Maness Chief Growth Officer

Havas Worldwide US, prev. Propane

Studio

Brendan Tansey CEO, Socialistic

China prev. CEO

Wunderman UK

Corey Mitchell President of Arnold

Worldwide New York Former MRM And

TBWA

Drake Pusey VP, Dir. of Digital

Platforms Arnold prev. Isobar

Sean Lyons Global Chief Digital Officer

Havas Worldwide, prev. R/GA

Vin Farrell Global Chief Content

Officer Havas Worldwide

prev. R/GA

Page 10: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

10

SIGNIFICANT IMPROVEMENT OF OPERATING MARGINS

€M H1 12 Variance 2013/2012

Revenue 829 +1%

Income from operations 99 +10%

Income from operations margin 11.9%

Net income, Group share 56 +3%

in % of revenue 6.8%

H1 13

837

109

13.0%

58 6.9%

Operating income 93 +8%

Operating income margin 11.2%

100

12.0%

Compensation (510) +2%

Compensation in % of revenue 61.6%

(518)

62.0%

H1 11

765

95

12.4%

53 6.9%

85

11.1%

(471)

61.6%

Earnings per share (in €) 0.12 0.13 0.15 +15%

2013 FIRST HALF RESULTS

Page 11: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

RECORD PROFITABILITY IN H1 2013 INCOME FROM OPERATIONS MARGIN: 13.0%

11 2013 FIRST HALF RESULTS

H1 2009 H1 2013

13.0%

10.1%

Page 12: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

12

RESULTS & FINANCIAL STRUCTURE H1 2013

2013 FIRST HALF RESULTS

Page 13: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

13

CONSOLIDATED P&L

€M H1 12

Revenue 829 Compensation (510) Other expenses and income from operations (220) Income from operations 99 Other operating expenses and income (6) Operating income 93 Net financial expense (14)

Income of consolidated Co. Before tax 79

Income tax (21)

Net income of consolidated companies 58

Minority interests (2)

Net income, Group share 56

H1 13

837

(518) (210) 109

(9)

100

(13)

88

(25)

63

(5)

58

+1%

+10%

+8%

+8%

+7%

+3%

Variance 2013/2012

Headcount at end of period 15,540 15,720 +1%

2013 FIRST HALF RESULTS

Page 14: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

COMPENSATION RATIO EVOLUTION

14

€M H1 2012 H1 2013 Variance

Compensation 510 518 +2% o/w bonuses 12 15 +16% o/w severance 7 7

Free lance costs 25 20 -20%

Compensation incl. Free lance ex. severance 528 531 +1%

in % of revenue 63.7% 63.4%

Average headcounts 15,416 15,709 +2%

2013 FIRST HALF RESULTS

Page 15: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

WATCHFUL MANAGEMENT OF OTHER EXPENSES FROM OPERATIONS

15

210

-4 -5

-3

+2

220

170

180

190

200

210

220

230

Autres charges op. S1 2012

Effet change Loyers Free lance Voyages, promotion, frais

de New Biz

Autres charges op. S1 2013

2013 FIRST HALF RESULTS

Others expenses form

op. H1 2012

Forex effect Leases Travel, promotion,

New Biz

Other expenses

form op. H1 2013

Free lance

Page 16: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

€M H1 12+ H2 11

H1 13+ H2 12

Net income of consolidated companies + 131 + 139 Non cash items +37 +56

Cost of net debt +21 +23

Cash flow from operations + 189 + 218 Investments - 265 - 62**

Dividends - 53 - 54

Net proceeds from borrowings +12 -162

Financial interests and change in equity -280* +18

Change in WCR -8 -53

Forex effect +24 -12

Change in net cash position -381 -107

CASH FLOW STATEMENT OVER THE LAST 12 MONTHS

16

* OPRA / OPAS effects = -€269M ** US headquarter move = -€14M

2013 FIRST HALF RESULTS

Page 17: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

17

CONSOLIDATED BALANCE SHEET AT 06/30/13

Total

€M

Assets 06/30/12 Liabilities and equity 06/30/12

Intangible and tangible assets

1,926 Consolidated equity 1,079

Net deferred tax 90 Provisions 110

WCR (309)* Net financial debt 444*

Total 1,707* 1,707*

06/30/13

1,933

81

(255)

1,759

06/30/13

1,162

121

372

1,759

104 74 Earn-out & buy-out

(*) Blocked current accounts relating to employee profit-sharing are included in the new definition of the net financial debt since December 31, 2012.

2013 FIRST HALF RESULTS

Page 18: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

CLOSING AND AVERAGE NET DEBT

18

-357

-266

-107

-34

41

-80

-239

-376

-292

-132

-92 -39

-444

-372

-450

-400

-350

-300

-250

-200

-150

-100

-50

0

50 S1 2007 S1 2008 S1 2009 S1 2010 S1 2011 S1 2012 S1 2013

Moyenne Clôture

Net debt of €372M as of 06/30/13 vs 444 M€ as of 06/30/12, Average net debt(1) of €239M in H1 2013 vs €80M in H1 2012

NB: On June 30,2013, net debt with the former definition would be €468M vs €510M on June 30, 2012

2013 FIRST HALF RESULTS

H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 H1 2012 H1 2013

Average Closing

(1) Definition « average net debt » on page 2

Page 19: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

LIQUIDITY AS OF 06/30/2013 (1) (M€)

19

Undrawn mid-term committed credit lines 376 476 Undrawn 365 day committed credit lines 78 78 Cash and cash equivalents 299 398

Total of potential liquidity 753 952

Available uncommitted credit lines 194 194 Available commercial paper program 220 220 Total of financing resources 1,167 1,366

(1)  €100m bond issue done on July 11, 2013 (5 years maturity) signature of a new €100m 5 years-committed credit line on August 28, 2013

Actual Proforma (1)

2013 FIRST HALF RESULTS

Page 20: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

FINANCIAL RATIOS OVER THE LAST 12 MONTHS

20

M€ 06/30/12 06/30/13

Net debt 444 372 Total equity 1,079 1,162 Gearing 0.41 0.32

Adjusted EBITDA (1) 263 291 Net debt / Adjusted EBITDA 1.7x 1.3x

Average net debt (2) 80 239 Average net debt/ Adjusted EBITDA 0.3x 0.8x

Financial result -30 -28 Adjusted EBITDA / Financial Result 8.7x 10.3x

(1)  Adjusted EBITDA = income from operations plus intangible and tangible fixed assets depreciation and amortization, stock option charges and other compensation defined by IFRS 2

(2)  Definition on page 2

2013 FIRST HALF RESULTS

Page 21: 2013 FIRST HALF RESULTS - Havas · PDF file2013 FIRST HALF RESULTS ... Havas does not intend, and disclaims any duty or obligation, ... Brendan Tansey CEO, Socialistic China

2013 FIRST HALF RESULTS Friday, August 30, 2013