Universal Registration Document 2023

7. Parent Company 2023 Financial Statements - AFR

Valuation of investments

(Section “Investments and other financial assets” of the Note 2 “Accounting policies and methods” and section 9.3 « Long‑term equity investments » of the Note 9 “Non‑current assets” to the Notes to the financial statements)

Risk identified As of December 31, 2023, investments are accounted for at a net book value of € 5 600M, or 93% of the total assets. They are accounted for at the acquisition price of the securities excluding ancillary expenses. We believe that the valuation of investments constitutes a key audit matter, given their materiality in the assets of Publicis Groupe SA, and because the valuation of their recoverable amount, often based on projected discounted future cash flows, involves judgements from management, and the use of numerous economic assumptions related to the Company’s growth forecasts
Our response

We assessed the process used to value the recoverable amount of the Company’s investments as well as the valuations carried out by the Company, and supported by an independent expert.  

We involved our valuation experts in order to assess the consistency of the assumptions used with the economic environment at closing and on the date the financial statements were prepared.  

We also compared the figures used for the impairment tests on Investments with the entities’ source data, as well as the result of our audit work or analytical procedures on these entities. We have examined:

  • The compliance of shareholders’ equity with the financial statements of the entities subject to audit or analytical procedures, 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 appropriateness of the information related to Investments 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).