Universal Registration Document 2021

The advertising and communication sectors are particularly sensitive to changes in the activity of advertisers. Economic downturns can have a more severe impact on the advertising, communications and consulting industries than on other sectors, in particular because many companies respond to a slowdown in economic activity by reducing their communication and consulting budgets, which could have an adverse effect on the Groupe.

The Groupe‘s competitors are of all sizes and types, and range from large multinational companies, including Internet giants capturing an ever-increasing share of the advertising market, to smaller agencies that operate in local or regional markets. Many players including systems integrators, database design and management specialists, telemarketing and web-based companies now have access to technical solutions that respond to clients’ specific marketing and communication needs. Such players, with more significant financial means and resources, have the potential to disrupt the competitive landscape in the advertising and communications industry more brutally and quickly than in many other industries. The Groupe must compete with these companies and agencies in order to maintain existing client relationships and to win new clients and accounts. Increased competition could have a negative impact on the Groupe‘s revenue and earnings.

Changes to regulations and market practices on the management of personal data may disrupt the advertising industry, in particular with the end of third-party cookies. The expansion of programmatic buying, digital media and Internet giants could lead to the disintermediation of part of the Groupe‘s activities. Finally, the disruption of some of the Groupe’s major clients impacts their needs and therefore the services that the Groupe provides to them. If the Groupe is unable to provide its clients with the best possible service in a timely and scaleable manner, its financial position and results could be affected.

The health and well-being of employees are at the heart of the Groupe‘s concerns. The Groupe’s talent face health and psychosocial risks related to the Covid-19 epidemic. They may also be exposed to other risks that may affect them physically or morally.

The advertising and communications industry is known for high mobility among its management and talent. This was amplified by the “Great Resignation” phenomenon, which has spread to all sectors including advertising and communication. Technology companies and the Internet sector continue to attract profiles that the Groupe would like to hire or retain. This led to an increase in the talent attrition rate in 2021, for which the Human Resources and Talent teams are mobilized. A significant volume of recruitment was carried out. The loss of some of them could hurt the Groupe. The Groupe‘s success very largely depends on the talent and expertise of its teams as well as on the strength of its relationships with clients.

In an environment in which digital expertise is central to the transformation of organizations, the Groupe’s businesses are seeing significant staff turnover, something that may represent a risk if not sufficiently anticipated.

The Groupe has drawn up ambitious action plans around diversity, equality and inclusion both at Groupe level and locally. The risk of non-execution of these plans within the allotted time could lead to the departure of certain talent and harm the Groupe’s image as an employer.

If the Groupe were no longer able to actively attract, retain and motivate valuable managers or employees, its prospects, business, financial position and results could be very adversely affected.