Universal Registration Document 2024

1.4 Principal sources of uncertainty arising from the use of estimates

In preparing these consolidated financial statements, the Groupe has made estimates and judgments. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.

The Groupe bases its estimates on past experience and on a series of other assumptions deemed reasonable under the circumstances, to measure the amounts to be used for the Groupe’s assets and liabilities. Actual results may differ from these estimates.

Judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

• Note 4 - Revenue and net revenue: determination of performance obligations and of the timing of revenue recognition;
• Note 25 - Term of the lease: determination of the lease terms and in particular whether the Groupe is reasonably certain to exercise the extension and termination options.

Estimates

Information about assumptions and estimation uncertainties at the reporting date that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is included in the following notes:

• Note 3 - Fair value measurement of assets and liabilities acquired in a business combination;
• Note 7 - Impairment test of non-current assets: determination of the main assumptions;
• Note 10 - Measurement of uncertain tax positions;
• Note 22 - Recognition and calculation of provisions and contingent liabilities: main assumptions concerning the probability and extent of an outflow of resources;
• Note 23 - Measurement of defined benefit obligations and post-employment medical benefits: determination of the main actuarial assumptions;
• Note 25 - Lease contracts: determination of the main assumptions (including the discount rate);
• Note 32 - Fair value measurement of stock options granted under Publicis Groupe SA’s stock option plans.

The Groupe does not expect these sources of uncertainty to be significantly impacted by future macro-economic, technological, social and climate changes. Regarding the latter, the effects of climate change and the climate transition plan described in the sustainability statements do not have a significant impact on the Groupe’s 2024 financial statements.

Note 2 Macro-economic context

In 2024, despite a global economic environment marked by modest growth and persistent economic and geopolitical uncertainties, the performance of the Groupe’s activities remained in line with the growth and margin rates forecast in the business plans. Growing demand for large-scale customization and strategic investments have strengthened the Groupe’s position.