2019 Annual financial report

2019 was a pivotal year for the Group with the acquisition of Epsilon, the marketing Big Data specialist. Epsilon has the technology and platforms to structure client first-party data , round it out with an incomparably diverse range of data sources and put together personalized campaigns at scale . 

By positioning Epsilon as the data expert of the Group, Publicis draws on this wealth of resources for all its business activities turning it into a key, differentiating advantage. Now more than ever, our activities are resolutely positioned to the future with more than 30% of our net revenue generated by data and digital business transformation.

But that’s not all: Publicis is also reshaping its organization over time to meet the needs of clients for streamlined and efficient access to the range of expertise on offer in the Group. We have also realigned our operations, organizing them by country to leverage synergies between areas of expertise and to discover innovative solutions. The Power of One strategy, initiated in 2016 as an integrated working model providing even more benefits to clients, is now fully up and running. Through the Group Client Leader, clients are offered a tailored service and direct access to the Group’s entire range of expertise. We help our clients to constantly innovate and grow their sales, while controlling costs.

2019 saw Publicis round off its transformation in terms of both assets and structure, placing it in a unique position to serve clients across the entire value chain. The only Group to have large-scale creative, media, data and technology assets, Publicis has a clear competitive edge—demonstrated by the new account wins in 2018 and 2019. For the second year in a row, the Group topped the league tables for winning new accounts and secured contracts in the biggest global tenders for existing or new clients (Disney, Beiersdorf, Axa and Novartis).

1.2 ORGANIZATION CHART

1.2.1 Description of the Group

/ Simplified organization chart at December 31, 2019 ⁽¹⁾

All companies mentioned by name are over 99% owned by the Groupe

Publicis Groupe SA is composed of several entities:

Publicis Groupe Investments BV

MMS France Holdings

MMS USA Holdings

Each entity manages several subsidiaries.

Publicis Groupe Investments BV:

Publicis Groupe Holdings BV International subsidiaries (excluding France, USA and subsidiaries held by the MMS country holdings)

MMS USA Holdings has Sapient Corporation, Epsilon Data Management and US subsidiaries

and two subsidiaries MMS Multi Market Services Ireland et MMS Multi Euro Services (Ireland) ( Two financial companies established in Dublin have been added to the Groupe to manage financial transactions and the short-term investing of subsidiaries' liquidity)

Publicis Groupe Holdings BV manages several holdings:

MMS UK Holdings: UK subsidiaries

MMS Italy Holdings: Italian subsidiaries

MMS Germany Holdings: German subsidiaries

MMS Australia Holdings: Australian subsidiaries

MMS Spain Holdings: Spanish subsidiaries

MMS Netherlands Holdings: Dutch subsidiaries

MMS Mexico Holdings: Mexican subsidiaries 

(1) All companies mentioned by name are over 99% owned by the Groupe

(2) Two financial companies established in Dublin have been added to the Groupe to manage financial transactions and the short-term investing of subsidiaries' liquidity

1.2.2 Main subsidiaries 

Information concerning Publicis’ principal consolidated subsidiaries at December 31, 2019 is provided in paragraph A, Note 34 to its consolidated financial statements in Section 6 of this Registration Document.

None of the Group’s controlled subsidiaries accounts for more than 10% of the Group’s revenue or net current consolidated income.

No subsidiaries included in the list of consolidated companies as at December 31, 2019 were sold as at the date of this document, with the exception of Matomy Media Group, the sale of which was finalized on March 26, 2020.

The majority of the Group’s subsidiaries are at least 90% held by Publicis Groupe

In addition, the Group holds interests in certain bodies in which the percentage of interest may be significant, but which are not controlled by the Group. Information concerning the main entities as well as the percentages held by the Group is provided in paragraph B, Note 34 to its consolidated financial statements in Section 6 of this document. However, these entities do not hold important assets and are not intended to hold any significant borrowings or financing. The borrowings and financing of the Group are 100% held and controlled by Publicis Groupe.

During 2019, Publicis Groupe SA did not take any significant stakes in any companies headquartered in France.