On January 27, 2021, Epsilon Data Management LLC was ordered to pay the sum of USD 150 million (a penalty of USD 22.5 million and compensation of USD 127.5 million) as part of an investigation by the Department of Justice in the United States. The risk identified at the time of the acquisition of Epsilon was covered in the sale agreement entered into with Alliance Data Systems Corporation (ADS) by an indemnification clause under which ADS undertook to indemnify Publicis for all financial consequences related to this investigation. As of December 31, 2020, other creditors and current liabilities included a debt of euro 132 million (USD 150 million) to meet this obligation. A receivable of the same amount corresponding to the compensation to be received from ADS was presented in other current receivables and current assets. During the first half of 2021, Publicis received compensation from ADS in the amount of USD 75 million. Publicis paid this same amount to the United States Department of Justice.
As of December 31, 2021, other creditors and current liabilities included a debt of euro 66 million (USD 75 million) to meet this obligation. A receivable of the same amount corresponding to the compensation to be received from ADS is presented in other current receivables and current assets. In January 2022, Publicis received compensation from ADS in the amount of USD 75 million and Publicis repaid this same amount to the United States Department of Justice.
On May 6, 2021, the Attorney General for the Commonwealth of Massachusetts filed a lawsuit against Publicis Health, LLC in connection with the work that agency and its predecessor agencies did for Purdue Pharma from 2010 to 2018 related to the marketing of opioids. The Attorney General’s basic theory is that Publicis violated the Massachusetts consumer protection statute and created a public nuisance by participating in Purdue Pharma’s efforts to market and sell opioids. Publicis considers that this complaint is unfounded.
The Publicis Groupe structure has been developed to provide the Groupe’s clients with comprehensive, holistic communication services involving all disciplines. As of January 1, 2020, Publicis Groupe has defined 10 key markets (country or region), which has led to operating segments being redefined. These 10 countries or regions are each run or supervised by a single person and overseen day-to-day by a single Executive Committee, bringing together members with a wide range of expertise. They are thus structured to offer our clients a broad-based solution that meets their needs.
The Groupe has therefore identified 10 operating segments corresponding to the geographic regions in which it operates: United States, Canada, United Kingdom, France, DACH (Germany, Austria and Switzerland), Asia-Pacific & Africa-Middle East, Central and Eastern Europe, Western Europe, Latin America (excluding Brazil) and Brazil.
Those operating segments with similar economic characteristics (similar margins), or where the nature of services provided to clients and the type of clients at which they are aimed are similar, have been grouped into five reporting segments: North America, Europe, Asia-Pacific, Middle-East Africa and Latin America.
The presentation of financial information based on the new operating segments results in the same level of information being presented as by geographic region.
