2020 Annual Financial Report

3.3 Related-party transactions

Chapter 3 : Governance and compensation

3.3 Related-party transactions

The following explanations summarize all transactions since 2018 between Publicis Groupe and related parties.

 

3.3.1 Terms and conditions of financial transactions carried out with related parties

In the second half of 2018, Publicis Groupe started a process to dispose of all the activities of Proximedia. Present in France, Belgium, the Netherlands and Spain, Proximedia assists micro-companies, SMEs, retailers and craftspeople with their digital communication. This process, conducted with the help of an independent bank, resulted in more than 60 potential candidates being approached. On December 19, 2018, the Groupe companies holding Proximedia’s activities received a firm acquisition offer for all the companies forming Proximedia and the Spanish activity. In return, the companies in question signed an exclusivity agreement with Ycor SCA to negotiate the final terms and conditions of this operation. Maurice Lévy, Chairman of the Publicis Groupe Supervisory Board, holds interests in Ycor SCA. Some 10 investors, out of the 60 approached, showed an interest in the full or partial takeover of Proximedia. Ycor SCA’s offer, covering the entire scope, was the highest offer financially and was also the most compelling in terms of development prospects for the companies sold and support of the teams. The disposal was completed on April 30, 2019 (see Section 6.6 – notes 3.3 and 7 to the consolidated financial statements in this document).

 

3.3.2 Related-party transactions

During 2020, the following transactions were carried out by Publicis Groupe with related parties:

 

Revenue from related parties

Expenses for related parties

Joint-venture between MSL France and Les Échos Solutions(2)

Joint-venture between MSL France and Les Échos Solutions(2)

Revenue from related parties

2

Joint-venture between MSL France and Les Échos Solutions(2)

Expenses for related parties

-

Burell Communication Groupe(4)

Burell Communication Groupe(4)

Revenue from related parties

2

Burell Communication Groupe(4)

Expenses for related parties

-

Weborama(5)

Weborama

(5)

Revenue from related parties

 

Weborama

(5)

Expenses for related parties

6

During the previous two financial years, the following transactions were carried out by Publicis Groupe with related parties:

 

Revenue (expenses) from related parties

 

2019 Financial year

2018 Financial year

Joint-venture between MSL France and Les Échos Solutions(2)

Joint-venture between MSL France and Les Échos Solutions(2)

Revenue (expenses) from related parties

12

9
Burell Communication Group(4)

Burell Communication Group

(4)

Revenue (expenses) from related parties

(2)

-

The outstanding amounts with related parties in the balance sheet as at December 31, 2020 were as follows (in millions of euros):

 

Receivables/loans vis-à-vis related parties

Liabilities vis-à-vis related parties

OnPoint Consulting, Inc.(1)

OnPoint Consulting, Inc.

(1)

Receivables/loans vis-à-vis related parties

14

OnPoint Consulting, Inc.

(1)

Liabilities vis-à-vis related parties

1

Joint-venture between MSL France and Les Échos Solutions(2)

Joint-venture between MSL France and Les Échos Solutions(2)

Receivables/loans vis-à-vis related parties

1

Joint-venture between MSL France and Les Échos Solutions(2)

Liabilities vis-à-vis related parties

-

Zag Limited(3)

Zag Limited

(3)

Receivables/loans vis-à-vis related parties

5

Zag Limited

(3)

Liabilities vis-à-vis related parties

-

Burrell Communication Group(4)

Burrell Communication Group

(4)

Receivables/loans vis-à-vis related parties

-

Burrell Communication Group

(4)

Liabilities vis-à-vis related parties

1

(1) Entity wholly owned by Publicis Groupe.

(2) Entity 50% owned by Publicis Groupe, to organize the “Viva Technology” event.

(3) Entity 36.75% owned by Publicis Groupe.

(4) Entity 49% owned by Publicis Groupe.

(5) Entity indirectly held by YCOR SCA, in which Maurice Lévy, Chairman of the Supervisory Board of Publicis Groupe, has interests.