2019 Annual financial report

2.1 MAIN RISK FACTORS

The risk factors described below, together with the other information concerning Publicis Groupe and its consolidated financial statements included in this Registration Document, should be carefully considered before making an investment in the shares or other securities of Publicis Groupe. This section covers the main risks to which Publicis Groupe feels it is exposed, as of the date of this Universal Registration Document. Each one of the risk factors may have a negative impact on the Group’s earnings and financial position as well as on its share price or financial instruments. Other risks and uncertainties of which Publicis is unaware or which are not currently considered to be significant could also have a negative impact on the Group.

Description of the main risk factors

In accordance with the provisions of article 16 of Regulation (EU) 2017/1129, the risk factors are presented for each of the risk categories mentioned below in what the Group deems from its assessment is the descending order of significance as of the date of this document. The risk factors considered the most significant are presented first, following an assessment of the level of their potential impact and likelihood of occurrence. The assessment by Publicis Groupe of the significance of risks may be amended at any time in light of changing circumstances.

Covid-19

The Groupe entered 2020 in a context characterized by high economic uncertainty related to the coronavirus epidemic (or Covid-19).

This epidemic, which will probably be long-lasting , is accompanied by the introduction of restrictive measures to control it in a large number of countries around the world. This situation could lead to an economic slowdown in the markets in which Publicis operates and have the effect of reducing its revenue and significantly impacting its operating activity and therefore its financial performance. The epidemic could also pose risks to the health and safety of its employees.

At the date of filing of this Universal Registration Document, the duration of this epidemic and the strength of its impact on the Groupe’s 2020 income are difficult to assess. However, we must underline the risks of budget cuts, client insolvency or recession, with possible consequences for our Groupe.

In general, all of the risks identified below should be considered in the light of the consequences of the coronavirus epidemic.

Risk factors