Universal Registration Document 2024

1.4 Investments - AFR

1. Presentation of the Groupe

1.4 Investments - AFR

1.4 INVESTMENTS

Our investments focus on digital expertise, data and technology to strengthen our teams and promote innovation and the offer of new services. The strengthening of our agencies and the development of strategic partnerships and initiatives with major Internet players enables Publicis Groupe to anticipate the changes and evolution of communication industries towards digital technologies. The aim is to offer the most innovative solutions to our clients, in step with the rapid changes in consumer behavior and technologies.

1.4.1 Main investments and divestments during the past three years

In 2022, the Groupe made several acquisitions to strengthen its capabilities in Data, Digital Business Transformation and Commerce. In digital transformation, the Groupe acquired Tremend, a Company of 650 engineers and developers, founded 16 years ago and based in Bucharest (Romania), to develop the new Publicis Sapient global distribution center in Europe. The Groupe also acquired Tquila ANZ, one of the leading multi-cloud solution consulting firms in Australia, with the aim of strengthening the Salesforce expertise of Publicis Sapient. In Commerce, the Groupe acquired the SaaS platform Profitero. With 300 employees, this world leader in e-commerce intelligence enables brands to analyze and optimize their sales, marketing and operational performance on 70 million products sold online on more than 700 e-commerce sites worldwide. In Data, the Groupe acquired Retargetly and Yieldify and integrated them within Epsilon. Retargetly works with distributors and publishers to combine first-party data with partner data for personalized targeting and audience measurement on digital channels. This acquisition enabled Epsilon to launch its activities in Latin America. In addition, the acquisition of Yieldify strengthened the Epsilon offering with solutions that improve the personalization of sites and the optimization of conversions and the client experience.

Following the conflict between Ukraine and Russia, Publicis announced in March 2022 its withdrawal from Russia, with the transfer of control of its agencies to local management. The Groupe transferred control of its operations to Sergey Koptev, founding Chairman of Publicis in Russia, with a contractual commitment to ensure a future for its 1,200 employees in the country. Publicis stopped its business and investments in Russia, and the cession was effective immediately. This disposal, effective immediately, led to an exceptional loss on disposal of euro 87 million. Russia has been deconsolidated since April 1, 2022.

Total acquisition costs for entities integrated during 2022 (gross payments, after excluding cash and cash equivalents acquired) came to euro 523 million, including euro 119 million in earn-out payments. In addition, euro 49 million was paid out as part of the disposal of Russia (cash of divested entities).

In 2023, Publicis announced the acquisition of Practia, one of the leaders in digital transformation services in Latin America, based in Argentina. With its 1,200 experienced professionals, this acquisition will position Publicis Sapient to enter the Latin American market while establishing a foundation for a nearshore delivery platform that will enable the Company to better service clients based in North America. Also, in digital transformation, the Groupe acquired Corra, based in New York, a leader in e-commerce who will augment Publicis Sapient’s existing expertise in commerce solutions, including Adobe Commerce, while extending Publicis Sapient’s offerings in digital and omnichannel commerce.

In order to address the booming demand for retail media in Continental Europe, Brazil and Argentina, Publicis and Carrefour announced the launch of their joint venture Unlimitail, based on the most advanced technologies from “CitrusAd powered by Epsilon” and the deepest retail expertise in the mass market retail sector from Carrefour.

Finally, with Publicis Sapient AI Labs and PS Hummingbird, the Groupe has invested in specialized joint ventures in Artificial Intelligence (AI) to strengthen this expertise at Publicis Sapient.

In 2024, the Groupe made two major acquisitions, in influencer marketing and commerce.

With Influential, Publicis Groupe invested in the world’s preeminent influencer marketing company and platform. Influential’s proprietary AI-powered technology platform with over 100 billion data points, coupled with its network of over 3.5 million creators, including access to and data on 90% of global influencers with more than 1 million followers, currently serves more than 300 brands around the world. By combining these capabilities with the unique data and identity assets of Epsilon, Publicis Groupe is putting the leadership of ID-driven influencer marketing in the hands of all of its clients through a premium creator network, revolutionized influencer planning and maximized crosschannel outcomes.