2020 Annual Financial Report

Chapter 1 : Presentation of the Groupe

/ The global advertising market by geographic region

Global advertising market (2020)

Advertising spend in 2020 (in millions of dollars)(1)(2)

% of global advertising spend in 2020(1)(2)

% of Publicis Groupe’s net revenue in 2020

North America

North America

Advertising spend in 2020 (in millions of dollars)(1)(2)

240,171

North America

% of global advertising spend in 2020(1)(2)

42%

North America

% of Publicis Groupe’s net revenue in 2020

62%

Europe

Europe

Advertising spend in 2020 (in millions of dollars)(1)(2)

116,245

Europe

% of global advertising spend in 2020(1)(2)

20%

Europe

% of Publicis Groupe’s net revenue in 2020

23%

Asia Pacific

Asia Pacific

Advertising spend in 2020 (in millions of dollars)(1)(2)

186,096

Asia Pacific

% of global advertising spend in 2020(1)(2)

32%

Asia Pacific

% of Publicis Groupe’s net revenue in 2020

10%

Latin America

Latin America

Advertising spend in 2020 (in millions of dollars)(1)(2)

26,082

Latin America

% of global advertising spend in 2020(1)(2)

5%

Latin America

% of Publicis Groupe’s net revenue in 2020

2%

Africa & Middle East

Africa & Middle East

Advertising spend in 2020 (in millions of dollars)(1)(2)

9,208

Africa & Middle East

% of global advertising spend in 2020(1)(2)

1%

Africa & Middle East

% of Publicis Groupe’s net revenue in 2020

3%

Total

Total

Advertising spend in 2020 (in millions of dollars)(1)(2)

57,7802

Total

% of global advertising spend in 2020(1)(2)

100%

Total

% of Publicis Groupe’s net revenue in 2020

100%

(1) In current prices and in 2020 average exchange rates.

(2) Zenith forecasts for Publicis Groupe markets..

/ Geographical breakdown of Publicis Groupe’s net revenue

(in millions of euros)

2019

In %

2020

In %

North America

North America

2019

5,516

North America

In %

57%

North America

2020

5 997

North America

In %

62%

Europe

Europe

2019

2,630

Europe

In %

27%

Europe

2020

2 278

Europe

In %

23%

Asia Pacific

Asia Pacific

2019

1,006

Asia Pacific

In %

10%

Asia Pacific

2020

932

Asia Pacific

In %

10%

Latin America

Latin America

2019

326

Latin America

In %

3%

Latin America

2020

230

Latin America

In %

2%

Africa & Middle East

Africa & Middle East

2019

322

Africa & Middle East

In %

3%

Africa & Middle East

2020

275

Africa & Middle East

In %

3%

Total

Total

2019

9,800

Total

In %

100%

Total

2020

9 712

Total

In %

100%

1.3.6 Business seasonality

Clients’ advertising and communications expenditure fluctuates, often in response to actual or expected changes in consumer spending. Because consumer spending in many of the Groupe’s markets is typically lower at the beginning of the year, following holidays, and in July and August, the most popular vacation months in Europe and North America, advertising and communications expenditure is lower during these periods as well. As a result, advertising and communications expenditure is not as high during these periods. Historically, the Groupe’s revenue is often higher in the second and fourth quarters of the year than in the first and third quarters.

As 2020 was heavily impacted by the Covid-19 pandemic, the traditional seasonality of the business was affected. Thus, the Groupe recorded a low point, in terms of revenue, in the second quarter, the quarter in which the global economy was most affected by the pandemic.

1.3.7 Competition

Since 2009, the Groupe has been ranked in third place in the global ranking of communications groups (by revenue, source: companies’ annual reports).