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Publicis may be named as defendant or co-defendant in litigation brought against its clients by third parties, its clients’ competitors, governmental or regulatory authorities, or a consumer association. These actions could, in particular, relate to the following complaints:
the advertising claims used to promote the products or services of these clients are false, deceptive or misleading;
Any damages and legal fees arising from such actions may negatively impact the Groupe. Moreover, Publicis’ reputation could be negatively affected by such allegations.
During the normal course of its business, the Groupe may also receive requests for information from the justice or administrative authorities as part of inquiries into business practices in its industry.
The Company has no knowledge of any governmental, legal or arbitration proceedings, whether pending or threatened, liable to have or having had in the last 12 months, a significant effect on the financial position or profitability of the Company and/or the Groupe, other than those mentioned in Note 21 and Note 33 to the consolidated financial statements (Section 6.6).
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Since 2005, Publicis Groupe SA has been publicly rated. Its rating is BBB, with a stable outlook, for Standard & Poor’s, and Baa2, with a negative outlook, for Moody’s Investors Service. A financial rating downgrade could adversely affect the Groupe’s ability to raise funds and result in higher interest rates for future borrowings.
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The Groupe is exposed to a liquidity risk when its incoming payments, which represent a multiple of revenue, no longer cover its outgoing payments, and at the same time its ability to raise new financial resources has been exhausted or is insufficient.
