Universal Registration Document 2023

5.7 OUTLOOK

The trends set out below do not constitute profit forecasts or estimates within the meaning of European regulation no. 809/2004 of April 29, 2004, as amended, implementing directive 2003/71/00 of the European Parliament and of the Council of November 4, 2003.

The Groupe announced its 2024 outlook during its full‑year results presentation on February 8, 2024. This outlook was confirmed with the publication of net revenue for the first quarter of 2024 on April 11, 2024.

Despite ongoing macroeconomic uncertainties, the Groupe aims to deliver organic growth between +4% and +5%.

The +4% objective is rock solid, and factors in continued delays in digital business transformation projects, more reductions in advertising spend and a cautious stance on year‑end budget adjustments. The higher end of the guidance at +5% is within reach assuming a faster ramp‑up of clients resuming spend on digital business transformation projects and fewer cuts in classic advertising. In the second quarter of 2024, the Groupe expects to deliver solid organic growth within the full year range.

In 2024, the Groupe also aims to maintain its financial ratios at levels which are the highest in the industry, namely:

• an operating margin of 18%, including a euro 100 million operating expense dedicated to the artificial intelligence investment plan;
• and free cash flow (before change in working capital requirements) between euro 1.8 and 1.9 billion.

Based on its free cash flow forecast and on its solid financial structure, the Groupe has set the following cash allocation for 2024:

• a dividend of close to euro 900 million fully paid in cash, corresponding to a euro 3.40 dividend per share. This dividend will be submitted to the vote of its shareholders at its next AGM on May 29, 2024. This corresponds to a48.9% payout and is a 17% increase compared to prior year;
• a share repurchase plan of circa euro 200 million in order to stabilize the number of shares in circulation. The repurchase plan aims to cover the existing Long Term Incentive Plans of the Groupe for a total of circa 2 million shares;
• an envelope for selective M&A between euro 700 and 800 million, to further strengthen the Groupe’s data, tech, commerce and AI capabilities.