Oct 22, 2015 - digital teams continues to create new business opportunities. .... The Virgin Mobile "#MealforaMeal" camp
PRESS RELEASE
Puteaux, October 22, 2015
Strong momentum maintained over the first 9 months of 2015
First 9 months of 2015 Revenue: €1,550 million (+18.1%) Organic growth: +6.0% 3rd Quarter 2015 Revenue: €516 million (+15.7%) Organic growth: +5.5%
Yannick Bolloré, Havas CEO, had this to say: "I would like to thank all our clients for their continued trust which has enabled us to maintain strong momentum over the first nine months of the year with sustained growth of +18.1% on average, resulting in organic growth of +6.0%. This demonstrates that our strategy to drive increased collaboration among our creative, media and digital teams continues to create new business opportunities. With a seamless offering that leverages capabilities from across the group, we are a more valuable partner for our clients and more attractive workplace for top industry talent. North America once again proved to be a powerhouse for Group results, generating organic growth of 8.5%, thanks in particular to Arnold, Havas Life and Havas WW. Europe continues to deliver robust performance, and Asia-Pacific has made significant progress with a return to double-digit growth. Our agencies in Latin America, on the other hand, have felt the effects of economic tensions in Brazil and Mexico, but nevertheless managed to deliver positive growth over the first nine months of the year. I would also like to thank all the talented teams that make up the Havas family and have contributed to this success. We are excited about the new talent that has joined the Havas family as a result of our recent acquisitions, among them the FullSIX Group in Europe and the US and Riverorchid in Southeast Asia, that I am sure will further reinforce the Group's development. On the strength of these very satisfactory results, we can look to the end of 2015 with confidence and enthusiasm."
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1.
KEY FIGURES Q1 2015
Q2 2015
Q3 2015
9 months 2015
224
281
243
747
82 64 78
100 72 108
81 69 93
263 205 279
178
197
191
566
APAC & AFRICA
36
44
45
LATIN AMERICA
31
44
469
565
Revenue (in €M) EUROPE of which France UK Other European countries NORTH AMERICA
TOTAL
Q1 2015
Q2 2015
Q3 2015
9 months 2015
4.4%
5.1%
4.7%
4.7%
1.1% 6.7% 6.2%
3.4% 3.7% 7.7%
0.6% 6.3% 7.3%
1.8% 5.5% 7.1%
NORTH AMERICA
10.2%
8.2%
7.3%
8.5%
125
APAC & AFRICA
10.1%
1.8%
8.1%
6.4%
37
112
LATIN AMERICA
5.4%
1.6%
-0.9%
1.8%
516
1 550
TOTAL
7.1%
5.5%
5.5%
6.0%
Organic Growth EUROPE of which France UK Other European countries
2. GENERAL COMMENTS → Consolidated Group revenue was €1,550 million for the first nine months of the year, including €516 million for the third quarter of 2015. → Group organic growth (excluding variations in exchange rates and scope of consolidation) was +6.0% for the first nine months of 2015 and 5.5% in the third quarter. Exchange rates had a positive impact of €121 million on the first nine months of 2015. Highlights by region: Europe: Europe sustained a strong growth rate, with Germany, Spain and the Czech Republic posting double-digit organic growth for both the first nine months and the third quarter of 2015. The UK continued to perform well, as did Italy. France grew slightly by 0.6% in Q3. All the businesses contributed to the region's strong overall performance. North America: Thanks to growth of +8.5% for the first nine months of 2015 and +7.3% in Q3, North America was a major contributor to Group growth. Arnold, Havas Edge and Havas WW Chicago all delivered double-digit growth in excess of 15%. Havas Life also posted solid results. Asia Pacific: Growth in this region picked up in Q3 2015 to reach +8.1%. For the first 9 months of the year, this growth was led by China, Australia, the United Arab Emirates and Singapore. Winning the AXA and Citroën accounts and additional duties from Peugeot made a major contribution to the region's performance. Latin America: The economic environment in Brazil and Mexico had a negative impact on agency performance in the region. Even so, strong performance from Argentina, and also from Chile and Peru, produced positive growth over the first nine months of the year.
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HIGHLIGHTS OF Q3 2015 a) NET NEW BUSINESS1 At the end of September, net new business1 stood at €1,377 million (in terms of billings – the yardstick adopted by the market). Some of the most significant wins of Q3 2015 include: In Asia Pacific: Electronic Arts in Australia and New Zealand (and in EMEA), Atomic Search and Citroën in China; In Latin America: Clorox (and also in North Africa, the Middle East and Canada), Jumex and Cinepolis in Mexico, Mix Radio in Brazil; In the USA: Kmart, National Association of Realtors and RE/MAX; In Europe: pan-European duties for Sharp and Royal Mail in the United Kingdom, Affinity in Italy, Manpower Group in Sweden, Calzedonia Group and Loterías y Aspuestas del Estado in Spain and Bank BGZ in Poland. See Annex 2 for a detailed list of new account wins in Q3 2015.
b) ACQUISITIONS The main acquisitions in Q3 were: •
Riverorchid, a network of integrated agencies based in Indochina with dedicated offices in Cambodia, Laos, Thailand, Myanmar and Vietnam. Riverorchid relies on its team of some 250 experts to offer clients integrated solutions covering advertising, media, research and digital.
•
FullSIX Group, one of Europe's leading independent digital communications groups. FullSIX employs over 600 people, based in France, Portugal, the United Kingdom, Spain, the United States and Italy.
•
Institut CSA, a specialist in market research designed to anticipate future shifts in society for key sectors of the economy.
•
Intervalles, an event production agency with an established presence in street marketing and drive-to-store, connecting brands, audiences and products through the experiential campaigns it designs.
c) HAVAS VILLAGES Havas continues to deploy its strategy of integration and collaboration, given concrete shape in the Havas Villages, where creativity, media and communication come together under a single roof. There are now 34 Havas Villages worldwide. More villages are scheduled to open shortly in Amsterdam, Barcelona, Brussels, London, Madrid and Pantin (outside Paris).
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4. CORPORATE SOCIAL RESPONSIBILITY Havas continues to encourage fresh initiatives as part of its approach to corporate social responsibility, a potent source of innovation and wider recognition: •
Communications industry federation AACC awards its annual Prix de la Campagne Citoyenne to honor civic-minded campaigns that set out to improve individual or group behavior, champion good causes or promote civic engagement by public and private sector businesses. The Group received five AACC awards this year (four Bronze and a Silver): three for campaigns produced by Les Gaulois, on road safety, for health education institute INPES and for eco-packaging, and two for campaigns by BETC Paris for Reporters Sans Frontières/Reporters Without Borders and Médecins du Monde/Doctors of the World respectively.
•
CSR observatory ORSE and the Forum RSE Médias, whose members include Havas Group, Lagardère, Vivendi and TF1, published a booklet on the subject of "CSR and Advertising". The publication focuses on two key elements: the content of advertising messages, and professional practices, formats and techniques. The booklet is available for download from the ORSE website.
•
"Goodvertising", the compendium of sustainable creative advertising, singled out the "Tous aux économies d’énergie" (we can all save energy) campaign by Havas Worldwide Paris for EDF for the impact and simplicity of its meaningful message.
5. MAJOR AWARDS The Group carried off a total of 17 awards in the various categories of the CLIO Awards, among them six Silver and 10 Bronze. BETC Paris was named French Agency of the Year and took five Bronze and three Silver awards for its campaigns for Canal+, CanalSat and Club Med. The "SnackHolidays" campaign by Les Gaulois for Transavia received three Bronze awards and "Dog Stretching" for Citroen also took Bronze. Rosapark was awarded a Silver and a Bronze for Thalys "Sounds of the City". The "Comic Sensus" campaign by Havas Sports & Entertainment Mexico for National Monte de Piedad and "#MealforaMeal" by Havas Worldwide Australia for Virgin Mobile Australia were each awarded Silver. Group agencies scooped a total of 18 awards at the Sharks awards. Havas Worldwide Paris struck Gold no less than five times in the short film category for "Happy New Year Charles". Rosapark won a Gold and a Silver for Thalys and another Silver for Brother. Havas WW London won a Gold for its "One of the Gang" campaign for Clic Sargent. BETC Paris/BETC Digital won two Gold and one Silver and BETC Paris another two Silver for their Canal+ campaigns. Kausa Paraguay carried off one Gold, Les Gaulois two Bronze and HAVAS WORLDWIDE Singapore another Bronze. At the WebAwards, Arnold Boston and BETC Paris/BETC Digital took a total of five awards. The Virgin Mobile "#MealforaMeal" campaign by Havas Worldwide Australia won a Silver and three Bronzes at the Spikes Asia, while Red Agency was awarded Silver in the Direct category for Jack Daniel’s "The Bar that Jack Built". At the Festival Media LATAM, the "Entre Panas" campaign for Bavaria/SAB Miller by Havas Media Colombia (Arena and HSE) was voted Campaign of the Year and also awarded a Gold and a Silver. HSE Mexico took a Gold, Havas Media Peru a Silver and Kausa a Bronze. 4
At the Loeries, Havas Worldwide Tunisia took two Gold and a Bronze with its "Recycle to Learn" campaign for BNP Paribas/UBCI, and Havas Worldwide Johannesburg won a Bronze in the print category with "Last Messages" for the Road Traffic Management Corporation.
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ANNEX 1
Revenue (in €M) EUROPE of which
3rd quarter 2014 2015
organic
9 months 2014 2015
organic
222
243
4.7%
679
747
4.7%
80 58 84
81 69 93
0.6% 6.3% 7.3%
256 170 253
263 205 279
1.8% 5.5% 7.1%
145
191
7.3%
420
566
8.5%
APAC & AFRICA
38
45
8.1%
102
125
6.4%
LATIN AMERICA
42
37
-0.9%
112
112
1.8%
447
516
5.5%
1 313
1 550
6.0%
France UK Other European countries NORTH AMERICA
TOTAL
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ANNEX 2 Havas Media Group: Affinity: Havas Media Italy Airbus Defense & Space: Havas Media Netherlands Allergan: Havas Media Sweden Atomic Search: Havas Media Australia Bank BGZ: Havas Media Poland Calzedonia Group: Havas Media Spain Cinepolis: Havas Media Mexico Clorox: Havas Media global (digital duties – Latin America, North Africa, Middle East and Canada) Direct & Quixa: Arena Portugal Electronic Arts: Havas Media EMEA+ANZ Farlabo: Havas Media Spain HCC 2015 Huawei Cloud Congress: HSE China Jumex: Havas Media Mexico Loterías y Apuestas del Estado: Havas Media Spain Manpower Group: Havas Media Sweden National Association of Realtors: Havas Media USA OLX: Havas Media Indonesia Pizza Hut / KFC: Havas Media Mexico Remy Cointreau: Havas Media China Rivella: Havas Media Switzerland Swisscanto: Havas Media Switzerland Unilever Food Solutions: Havas Media Germany Watchever: Havas Media Germany Weleda: Havas Media France
Havas Creative Group: Abbvie: Havas Paris, (corporate communication) Burgo de Arias: HWW Spain (integrated campaign) Carlsberg: HWW Hong Kong (integrated campaign) China in Box: HWW São Paulo, (integrated campaign) Citroen China: HWW Shanghai (integrated campaign) Desigual: BETC Paris, (creative duties) Hering: BETC Sao Paulo, (integrated campaign) Intu Properties plc: Conran Design Group London (annual report and sustainable development) ITV plc: Conran Design Group London (annual report, print and online) Kmart: HWW Chicago, (integrated campaign) Mix Radio: Havas Social São Paulo, (integrated campaign) National Association of Realtors: Arnold Boston (AOR) Ornua Group: Havas Worldwide Johannesburg (creative duties) RE/MAX: Camp + King, (creative and integrated duties) Royal Mail London: Helia (client engagement strategy) Savencia: BETC Digital Paris, (client engagement strategy) Sharp: Havas Work Club London (integrated campaign in Europe) UD Trucks: HWW Tokyo & HWW Singapore (integrated campaign) Valrhona: BETC Digital Paris (B2B & B2C digital duties and brand strategy)
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About Havas Havas is one of the world's largest global communications groups. Founded in 1835 in Paris, the Group now employs 18,000 people in over 100 countries. Havas is committed to being the world’s best company at creating meaningful connections between people and brands through creativity, media and innovation. Havas is also the most integrated Group in its sector, with most of its creative and media teams sharing the same premises, the Havas Villages, designed to increase synergies and creativity for all its clients and agencies. Havas is organized into two divisions: Havas Creative Group and Havas Media Group. Havas Creative Group incorporates the Havas Worldwide network (havasworldwide.com), 316 offices in 75 countries, the Arnold micro-network (arn.com), 15 agencies in 12 countries, as well as several leading agencies including BETC. Havas Media Group (havasmediagroup.com) operates in over 100 countries, and incorporates four major international networks: Havas Media (havasmedia.com), Arena Media (arena-media.com), Forward Media and Havas Sports & Entertainment (havas-se.com). Further information about Havas is available on the company’s website: havas.com Forward-Looking Information This document contains certain forward-looking statements which speak only as of the date on which they are made. Forward looking statements relate to projections, anticipated events or trends, future plans and strategies, and reflect Havas’ current views about future events. They are therefore subject to inherent risks and uncertainties that may cause Havas’ actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially from expected results include changes in the global economic environment or in the business environment, and in factors such as competition and market regulation. For more information regarding risk factors relevant to Havas, please see Havas’ filings with the AMF (Autorité des Marchés Financiers) (documents in French) and, up to October 2006, with the U.S. Securities and Exchange Commission (documents in English only). Havas does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise. (1): Net New Business Net new business represents the estimated annual advertising budgets for new business wins (which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients) less the estimated annual advertising budgets for lost accounts. Havas' management uses net new business as a measurement of the effectiveness of its client development and retention efforts. Net new business is not an accurate predictor of future revenues, since what constitutes new business or lost business is subject to differing judgments, the amounts associated with individual business wins and losses depend on estimated client budgets, clients may not spend as much as they budget, the timing of budgeted expenditures is uncertain, and the amount of budgeted expenditures that translates into revenues depends on the nature of the expenditures and the applicable fee structures. In addition, Havas' guidelines for determining the amount of new business wins and lost business may differ from those employed by other companies. Other definitions: Organic growth is calculated by comparing revenue for the current financial period against revenue for the previous financial period adjusted as follows: – revenue for the previous financial period is recalculated using the exchange rates for the current financial period; – to this resulting revenue is added the revenue of companies acquired between January 1 of the previous financial period and the acquisition date for the period in which these companies were not as yet consolidated; – revenue for the previous financial period is also adjusted for the consolidated revenue of companies disposed of or closed down between January 1 of the previous financial period and the date of disposal or closure. Organic growth calculated by this method is therefore adjusted for variations in exchange rate against the euro, and for variations in the scope of consolidation.
Contact: Lorella Gessa Communications Director, Havas Group Tel: +33 (0)1 58 47 90 36
[email protected] @Lorella_Gessa Aurélie Jolion Director of Investor Relations, Havas Group Tel: +33 (0)1 58 47 92 42
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