The annual financial statements for the 2025 financial year have been prepared in accordance with the French Chart of Accounts (Plan Comptable Général), (ANC regulation 2014-03) and in compliance with applicable legal and regulatory texts in France.
Effective with the fiscal year beginning January 1st 2025, Publicis Groupe SA applies Regulation no. 2022-06 of November 4, 2022, relating to the modernization of financial statements, which amends the French General Accounting Plan (Plan Comptable Général). This regulation, approved by decree on December 26, 2023, and mandatory for fiscal years, beginning in 2025, constitutes a change in accounting method required of the Company. Consequently, the financial statements for the 2025 fiscal year are presented in accordance with the new provisions of the regulation. The main changes involve: (i) the definition of extraordinary items, now limited to major and unusual events only (current operations being recorded in operating or financial results) ; (ii) the elimination of the expense transfer technique ; (iii) the adoption of new harmonized balance sheet and income statement models defined by the ANC (French Accounting Standards Authority), requiring some reclassifications of items for compliance purposes.
In accordance with the provisions of this regulation, the application is prospective from January 1st, 2025. Only the reclassifications required to comply with the new balance sheet and income statement format were made to the opening balances as of January 1, 2025. The 2024 accounts, as established according to the previous framework, have been included in this document (cf. note 23 of financial statements).
The adoption of the 2022-06 Regulation essentially modifies the presentation of the 2025 income statement. No impact on net income or shareholders’ equity is expected as a result of this change, except from internal reclassifications. In particular, rebilling for free shares delivered under employee LTI plans, previously presented in the line “Reversals of provisions and expenses transfers” for a total amount of euro 108,901 thousand in 2024, is now included in the line “Other operating income”, from 2025 onwards, for a total amount of euro 120,721 thousand.
Intangible assets subject to amortization consist of the concession of parking spaces, amortized over 75 years (length of the concession), and the goodwill of Publicis Cinema, already fully amortized.
Property, plant and equipment are recognized at net acquisition cost and are subject to annual depreciation calculated on a straight-line basis over the following periods:
The gross amount of long-term equity investments is composed of the acquisition price of the securities excluding acquisition costs. Foreign currency-denominated securities are recognized at their acquisition price translated into euros.
Impairment is recognized whenever the utility value for equity investments is lower than the carrying amount. Value in use is determined according to criteria such as net asset value, the use of comparable methods involving the application of multiples based on samples of comparable companies or transactions, the use of Discounted Cash Flow (DCF) methods derived from business plans established by Management over a 5-year timeframe, associated with the strategic importance of the investment for the Groupe. Value in use is determined based on valuation reports prepared by an independent expert.
Marketable securities primarily include treasury shares, which are classified according to their intended purpose, and money market funds held under the liquidity contract.
A provision for liabilities is recognized for treasury shares allocated to free share plans in order to reflect the loss resulting from the difference between the subscription price (zero for the free shares) and their cost price.
A provision is recognized for treasury shares that are not allocated to such a plan as well as for other marketable securities, whenever their current value at year-end is lower than their carrying amount. The current value of publicly traded securities equals the average quoted price for the final month of the financial year, and for non-listed securities, the probable selling price.
Bonds are recognized at their par value.
In cases where a redemption premium exists, the liability is increased by the total amount of such a premium. This premium is offset by the recognition of an asset, which is amortized over the life of the bond on an actuarial basis.
In cases where an issue premium exists, the liability is recognized at par value and the issue premium is recognized as an asset; the issue premium is amortized over the life of the bond.
