Universal Registration Document 2025

Provisions for liabilities and charges

Provisions are funded when:

• the Company has a present obligation (legal or constructive) resulting from a past event;
• it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
• the amount of the outflow can be estimated reliably.

Where the effect of the time value of money is material, provisions are discounted to present value. Increases in the amount of provisions resulting from the unwinding of the discount are recognized as financial expenses.

Contingent liabilities are not recognized but, if material, are disclosed in the Notes to the financial statements.

Financial instruments

In principle, the derivatives used by the Company are for hedging purposes only. The accounting treatment of these instruments is:

• derivatives used to hedge foreign currency receivables, debts, loans or borrowings are revalued in the balance sheet in respect of their foreign currency component in order to reflect the symmetrical effect under “Unrealized currency translation – Gains/Losses” on the balance sheet;
• realized gains and losses are recorded symmetrically on the hedged item.

Net financial income

Financial income is recognized by applying the usual rules, namely:

• dividends: on the date the distribution is approved by the General Shareholders’ Meeting;
• financial income on current accounts, term deposits and bonds: as and when the income is acquired;
• interests and dividends on marketable securities: on the date of receipt.

Extraordinary result

ANC Regulation no. 2022-06, applicable to fiscal years beginning on or after 1 January 2025, provides that only the following items are recognized as extraordinary items:

• income and expenses directly related to a major and unusual event;
• accounting entries of a purely tax-related origin
• changes in accounting methods that the entity is required to recognize in profit or loss, rather than in equity, as a result of the application of tax rules;
• error corrections, except where these are recorded directly in equity.

Income tax

Publicis Groupe SA and some of its subsidiaries have opted to file as a tax consolidation group. Each of the companies computes and recognizes its own corporate income tax charge as if it were taxed separately.

The tax savings resulting from the application of the tax consolidation group are equal to the difference between the sum of tax paid to the parent company by consolidated companies and tax calculated on Groupe earnings. These savings accrue to the parent company.

However, given the provisions laid down in agreements with subsidiaries, tax savings recognized by the parent company during the financial year, arising from the use of tax losses and net long-term capital losses reported by consolidated companies, are only temporary. Consolidated companies are treated as separate entities for tax purposes.

Note 3 Revenue

Billings are mainly composed of:

• rent received on the building at 133 avenue des Champs-Élysées in Paris, France;
• services invoiced to Groupe companies.