2019 Annual financial report

/ 2018 Financial year

(in millions of euros)	Europe	North America	Asia Pacific	Latin America	Middle East & Africa	Total
(in millions of euros) Income statement items	Europe	North America	Asia Pacific	Latin America	Middle East & Africa	Total
(in millions of euros) Net revenue⁽¹⁾	Europe 2,622	North America 4,795	Asia Pacific 924	Latin America 347	Middle East & Africa 281	Total 8,969
(in millions of euros) Revenue⁽¹⁾	Europe 3,065	North America 5,132	Asia Pacific 1,024	Latin America 353	Middle East & Africa 377	Total 9,951
(in millions of euros) Amortization expense (excluding intangibles arising from acquisitions)	Europe (255)	North America (179)	Asia Pacific (65)	Latin America (15)	Middle East & Africa (12)	Total (526)
(in millions of euros) Operating margin	Europe 429	North America 847	Asia Pacific 165	Latin America 54	Middle East & Africa 28	Total 1,523
(in millions of euros) Amortization of intangibles from acquisitions	Europe (10)	North America (57)	Asia Pacific (1)	Latin America (1)	Middle East & Africa 0	Total (69)
(in millions of euros) Impairment loss	Europe (45)	North America (75)	Asia Pacific (9)	Latin America (1)	Middle East & Africa (1)	Total (131)
(in millions of euros) Non-current income and expenses	Europe (1)	North America (0)	Asia Pacific (19)	Latin America 0	Middle East & Africa 0	Total (20)
(in millions of euros) Operating income after impairment	Europe 371	North America 698	Asia Pacific 136	Latin America 50	Middle East & Africa 26	Total 1,281
(in millions of euros) Balance sheet items	Europe	North America	Asia Pacific	Latin America	Middle East & Africa	Total
(in millions of euros) Goodwill, net	Europe 2,475	North America 4,630	Asia Pacific 1,094	Latin America 362	Middle East & Africa 190	Total 8,751
(in millions of euros) Intangible assets, net	Europe 94	North America 1,020	Asia Pacific 2	Latin America 7	Middle East & Africa 2	Total 1,125
(in millions of euros) Right-of-use assets related to leases	Europe 717	North America 822	Asia Pacific 139	Latin America 31	Middle East & Africa 23	Total 1,732
(in millions of euros) Property, plant and equipment, net	Europe 306	North America 229	Asia Pacific 49	Latin America 14	Middle East & Africa 13	Total 611
(in millions of euros) Other financial assets	Europe 122	North America 56	Asia Pacific 29	Latin America 5	Middle East & Africa 3	Total 215
(in millions of euros) Disclosures in respect of the statement of cash flows	Europe	North America	Asia Pacific	Latin America	Middle East & Africa	Total
(in millions of euros) Purchases of property, plant and equipment and intangible assets	Europe (47)	North America (126)	Asia Pacific (21)	Latin America (5)	Middle East & Africa (8)	Total (207)
(in millions of euros) Purchases of investments and other financial assets, net	Europe (6)	North America (4)	Asia Pacific -	Latin America -	Middle East & Africa (1)	Total (11)
(in millions of euros) Acquisitions of subsidiaries	Europe (100)	North America (94)	Asia Pacific (36)	Latin America (22)	Middle East & Africa (8)	Total (260)

(1) Because of the way this indicator is calculated (difference between billings and cost of billings), there are no eliminations between the different zones.

Note 30 Publicis Groupe SA stock option and free share plans

Six free share plans were created during 2019, with the following features:

Long Term Incentive Plan “LTIP 2019” (May 2019)
Under this plan, a certain number of Group managers were awarded free shares, subject to two conditions:
- employment must continue throughout the three-year vesting period;
- the free shares are subject to performance criteria and the total number of shares delivered will depend on the overall growth and profitability targets attained in 2019. The shares ultimately awarded in accordance with the level of attainment of these performance targets will be deliverable at the end of a three-year period, i.e. in May 2022.
  Long Term Incentive Plan “LTIP 2019-2021” (June 2019)
  Under this plan, the members of the Management Board were awarded free shares, subject to three conditions:
employment must continue throughout the three-year vesting period;
- growth and profitability targets must be achieved for the years 2019, 2020 and 2021;
- a CSR (Corporate Social Responsibility) criterion must be met. The condition will be considered to be met if, at the end of the third year of the performance period, at least 40% of the members of the Group’s Executive Committees in the Solution Hubs and main countries are women.
  The shares ultimately awarded in accordance with the level of attainment of these conditions will be deliverable at the end of a three-year period, i.e. in June 2022.

2019 Annual financial report

Chapter 6. Consolidated financial statements 2019 year

/ 2018 Financial year

Note 30 Publicis Groupe SA stock option and free share plans