Universal Registration Document 2022

Business model

BUSINESS MODELBUSINESS MODEL

Publicis Groupe is one of the world's leading communication companies, present across the entire marketing and communications value chain, from strategic consulting to execution. The Groupe's strategy is to partner with its clients through an integrated approach that enables them to increase their market share and accelerate their development in a new era of commerce.

FOUR MAIN EXPERTISES

To help our clients develop and activate effective and responsible business strategies

Publicis Groupe's service offering is based on a detailed knowledge of consumer expectations and on a unique base of expertise, with dynamic, diverse and disruptive creativity, a powerful large-scale targeted media offering, as well as data skills and innovative technological solutions. Publicis Groupe helps its clients retain control of their customer data to build their own digital channels and establish a direct dialogue with each and every one of them.

VALUE CREATION

For all stakeholders in all countries

	HUMAN	INTELLECTUAL	FINANCIAL	SOCIETY	ENVIRONMENTAL
CAPITAL AND RESOURCES	CAPITAL AND RESOURCES HUMAN 98,022 employees 51.3% women	CAPITAL AND RESOURCES INTELLECTUAL Business excellence for all clients Partnership with strategic suppliers	CAPITAL AND RESOURCES FINANCIAL Total balance sheet assets: €35.9Bn Family shareholders and Corporate Officers: 9.3% of capital*	CAPITAL AND RESOURCES SOCIETY Ethics & compliance Commitment to communities	CAPITAL AND RESOURCES ENVIRONMENTAL Switching to renewable energies Eco-design of campaigns and digital solutions
ENGAGED ACTIONS	ENGAGED ACTIONS HUMAN MARCEL, at the heart of employee training and career paths Well-being at work, physical and mental health support Launch of Working with Cancer	ENGAGED ACTIONS INTELLECTUAL Client satisfaction at the heart of the “Power of One” approach Responsible marketing Advanced expertise Investments in application R&D Partnerships with start-ups CSR assessment of suppliers	ENGAGED ACTIONS FINANCIAL Highest operating margin in the industry Strong top-line growth Present in more than 100 countries	ENGAGED ACTIONS SOCIETY 510 pro bono campaigns & volunteering actions Fight for social justice	ENGAGED ACTIONS ENVIRONMENTAL SBTi targets: 1.5°C scenario 2030: 50% reduction in scopes 1+2+3⁽⁷⁾ 2040: 90% reduction in scopes 1+2+3 NetZero before 2040 Impact reduction campaigns & digital solutions
2022 KEY INDICATORS	2022 KEY INDICATORS HUMAN 45% women on the Supervisory Board 42.5% women in key leadership positions 44.1% women in senior roles 89% of employees received training €8,211M personnel costs Women’s Forum: 2,300 attended in Paris and 30,000 attended online	2022 KEY INDICATORS INTELLECTUAL 30,000 talents in Data & Tech A.L.I.C.E.⁽²⁾ : to measure carbon emissions of the campaigns and projects Active member of several international coalitions: Unstereotype Alliance (UN Women), GARM (Global Alliance for Responsible Media) Founder of the Once And For All Coalition 98% of global Groupe providers assessed in CSR by a third party; +170 new local suppliers evaluated on P.A.S.S⁽³⁾ VivaTech 2022: 91,000 visitors present in Paris and 300,000 online	2022 KEY INDICATORS FINANCIAL €14.2Bn revenue €12.6Bn net revenue €2,266M operating margin €1,611M Headline Groupe net income ⁽⁴⁾ €1.7Bn Free Cash Flow⁽⁵⁾(before WCR change) €2.90 dividend per share ⁽⁶⁾	2022 KEY INDICATORS SOCIETY €430M taxes paid in 2022 €39.5M equivalent value undertaken in community activities US$25M invested for Once And For All Coalition by APX Content Ventures	2022 KEY INDICATORS ENVIRONMENTAL Carbon intensity 2022: 2.2 TeqCO₂per capita(-32.2% since 2019) 47% of RE⁽⁸⁾ from direct source Carbon neutrality on scopes 1+2 (after purchases of RECs and CCVs)⁽⁹⁾ A.L.I.C.E applicable to all Groupe activities Active member of Ad Net Zero industry initiative to align carbon emissions calculations
SDG⁽¹⁾

(1) SDG: United Nations Sustainable Development Goals.Publicis Groupe has identiﬁed 9 of the 17 goals whereby the Groupe and its subsidiaries can contribute to make a positive impact (see chapter 4.6 ).

(2) A.L.I.C.E: Advertising Limiting Impacts & Carbon Emissions,proprietary platform.

(3) P.A.S.S: Publicis Groupe Providers Platform for a self-Assessment for a Sustainable Supply-chain, internal platform.

(4) Groupe share.

(5) The published Free Cash Flow for 2022 is €1,807 million before the payment of an additional tax of €110 million made in January 2023 relating to 2022, under the new US “Tax Cuts and Job Act” (TCJA) on the capitalization of R&D expenses conﬁrmed at the end of December 2022.

(6) Submitted to Shareholders’ vote during the Annual General Meeting of May 31, 2023

(*) See chapters 3.2.3, 8.2.1 and 8.3.6 of this Universal Registration Document.

(7) Targets approved by SBTi (Science Based Targets Initiative)in March 2021 with 2019 as reference year.

(8) RE: Renewable Energy.

(9) RECs: Renewable Energy Certiﬁcates; VCCs: Voluntary Carbon Credits.