Universal Registration Document 2022

Groupe Profile

Valuation of investments and related loans and receivables

Note 9.3 « Investments », note 9.4 and « Related loans and receivables » to the financial statements

Risk identified

As of December 31, 2022, investments are accounted for at a net book value of €5.559m, or 94% of the total assets. They are accounted for at the acquisition price of the securities excluding ancillary expenses. The loans and receivables owed by associates and non-consolidated companies amount to €41, or 0.7% of the total assets.

We considered that the valuation of investments and loans and receivables owed by associates and non-consolidated companies constitutes a key audit matter, given their materiality in the assets of Publicis Groupe S.A., and because the valuation of their recoverable amount, often based on projected discounted cash flows, involves judgements from management, and the use of many economic assumptions related to the Company’s growth forecasts.
Our response

We examined the process for assessing the recoverable amount of the Company’s investments and related loans and receivables, and examined the valuations carried out by the Company and supported by an independent expert.

With the assistance of our valuation expert, we examined the consistency of the assumptions made with the economic environment at the balance sheet date.

We also compared the figures used for the impairment tests on Investments with the entities’ source data. We have examined:

  • the reconciliation of the shareholders’ equity with the financial statements of the entities, and the evidence related to adjustments made, when applicable, on such shareholders’ equity;
  • the consistency of projected future cash flows for the relevant entities’ activities, as prepared by their operational management, with the companies’ growth forecasts taken from the latest strategic plans;
  • The adjustments made to the present value of projected future cash flows to account for the indebtedness of the relevant entities.

We assessed the recoverability of the related loans and receivables owed by associates and non-consolidated companies in the light of the analyses performed on the Investments.

We assessed the appropriateness of the information related to Investments and loans and receivables owed by associates and non-consolidated companies, as set out in the Notes to the financial statements.

Specific Verifications

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations.

Information given in the management report and in the other documents with respect to the financial position and the financial statements provided to the shareholders

We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the Executive Board’s management report and in the other documents with respect to the financial position and the financial statements provided to the shareholders.

We attest the fair presentation and the consistency with the financial statements of the information relating to payment deadlines mentioned in Article D. 441-6 of the French Commercial Code (Code de commerce).

We attest that the non-financial statement required by Article L. 225-102-1 of the French Commercial Code (Code de commerce) is included in the management report, it being specified that, in accordance with Article L. 823-10 of said Code, we have verified neither the fair presentation nor the consistency with the financial statements of the information contained therein This information should be reported on by an independent third party.