This document is a free translation of the French Document de Référence (“Reference Document”) which was registered under n°D.09‐0120 by the French Autorité des Marchés Financiers (“AMF”) on March 19, 2010. It is to be used for information purposes only. In the event of any inconsistencies between this translation and the “Reference Document”, the “Reference Document” shall prevail. REFERENCE DOCUMENT Fiscal Year 2009 This Document was filed with the AMF on March 19, 2010, in accordance with Article 212‐23 of the AMF Regulations. This Document may be used in connection with a financial transaction only if supplemented by a Transaction Note certified by the AMF. It has been prepared by the Company, and the signing parties are responsible for its content. Copies of this Reference Document are available at Publicis Groupe S.A., 133, avenue des Champs‐Elysées, 75008 Paris, on the Publicis Groupe SA website at www.publicisgroupe.com and on the AMF website at www.amf ‐france.org. Pursuant to Article 28 of EU Regulation No. 809/2004, the following information is incorporated by reference into this Document: - the consolidated financial statements of Publicis Groupe for fiscal years 2008 and 2007, prepared in accordance with International Financial Reporting Standards (IFRS), Management’s Discussion and Analysis thereof, together with the corresponding reports of the statutory auditors, as well as the statutory accounts of Publicis Groupe S.A., for the fiscal years 2008 and 2007 prepared in accordance with French accounting standards, the corresponding reports of the statutory auditors included in the Reference Documents (Chapters 4, 5, 6, 7, 9, 10, 12, 18 and 20) filed with the AMF on March 13, 2009 under number D.09‐120, and on March 19, 2008 under number D.08‐132. - the reports of the statutory auditors on the information concerning the agreements with related parties covered by Article L. 225‐86 of the French Code de Commerce concluded by Publicis Groupe S.A., which are included in the Company’s Reference Documents for 2008 and 2007 filed with the AMF on March 13, 2009, under number D.09‐0120 and on March 19, 2008 under number D.08‐132, respectively. The other information contained in the documents described above is not incorporated by reference herein. Publicis Groupe S.A. ‐ Corporation with both Management Board and Supervisory Board and share capital of 79,033,245 euros. Registered office: 133 avenue des Champs Elysées, 75008 Paris ‐ 542 080 601 RCS Paris Table of Contents 1 PERSONS RESPONSIBLE __________________________________________________ 6 1.1 PERSON RESPONSIBLE FOR THE REFERENCE DOCUMENT______________________ 6 1.2 CERTIFICATE OF PERSON RESPONSIBLE FOR THE REFERENCE DOCUMENT ________ 6 2 STATUTORY AUDITORS __________________________________________________ 8 2.1 PRINCIPAL STATUTORY AUDITORS ________________________________________ 8 2.2 DEPUTY STATUTORY AUDITORS __________________________________________ 8 3 SELECTED FINANCIAL INFORMATION _______________________________________ 9 4 RISK FACTORS ________________________________________________________ 10 4.1 RISK FACTORS RELATED TO THE ADVERTISING AND COMMUNICATION SECTORS__ 10 4.2 LEGAL AND/OR REGULATORY RISKS______________________________________ 12 4.3 RISKS RELATED TO ACQUISITIONS _______________________________________ 13 4.4 RISKS RELATED TO THE GROUP’S INTERNATIONAL PRESENCE _________________ 13 4.5 FINANCIAL RISKS______________________________________________________14 5 INFORMATION CONCERNING THE ISSUER __________________________________ 16 5.1 HISTORY AND DEVELOPMENT OF THE COMPANY ___________________________ 16 5.1.1 LEGAL NAME AND COMMERCIAL NAME __________________________________ 16 5.1.2 REGISTRATION NUMBER AND LOCATION _________________________________ 16 5.1.3 DATE AND DURATION OF INCORPORATION _______________________________ 16 5.1.4 REGISTERED OFFICE, LEGAL STRUCTURE, APPLICABLE LEGISLATION, JURISDICTION, ADDRESS AND TELEPHONE NUMBER OF COMPANY HEADQUARTERS ___________ 16 5.2 HISTORICAL BACKGROUND ____________________________________________ 16 5.3 INVESTMENTS _____ _________________________________________________ 20 5.3.1 PRINCIPAL INVESTMENTS IN THE PAST THREE YEARS ________________________ 20 5.3.2 PRINCIPAL CURRENT INVESTMENTS _____________________________________ 25 5.3.3 FUTURE CAPITAL EXPENDITURES AND DIVESTITURES________________________ 25 6 BUSINESS OVERVIEW___________________________________________________ 26 6.1 MAIN BUSINESS___ __________________________________________________ 26 6.1.1 INTRODUCTION______________________________________________________ 26 6.1.2 STRATEGY __________________________________________________________ 27 6.1.3 SERVICES AND BUSINESS STRUCTURE ____________________________________ 33 6.2 MAIN MARKETS___ __________________________________________________ 37 6.2.1 MARKETS BY GEOGRAPHIC ZONE________________________________________ 37 6.2.2 INFORMATION BY ACTIVITY SECTOR _____________________________________ 38 6.2.3 MAIN CUSTOMERS ___________________________________________________ 38 6.2.4 SEASONALITY _______________________________________________________ 39 Publicis Groupe S.A. • Reference document 2009 i 6.2.5 COMPETITION _______________________________________________________ 39 6.2.6 GOVERNMENTAL REGULATIONS ________________________________________ 40 6.3 EXCEPTIONAL EVENTS_________________________________________________ 40 6.4 BASIS FOR THE COMPANY’S FINANCIAL STATEMENTS REGARDING ITS COMPETITIVE POSITION___________________________________________________________ 41 6.5 INSURANCE AND RISK COVERAGE _______________________________________ 41 7 ORGANIZATIONAL STRUCTURE ___________________________________________ 42 7.1 DESCRIPTION OF THE GROUP___________________________________________ 42 7.2 PRINCIPAL CONSOLIDATED SUBSIDIARIES _________________________________ 43 8 PROPERTY, PLANTS AND EQUIPMENT _____________________________________ 44 8.1 MAJOR CURRENT FIXED ASSETS OR PROJECTED CAPITAL EXPENDITURES AND MAJOR RELATED CHARGES____________________________________________________44 8.2 ENVIRONMENTAL QUESTIONS WHICH MAY INFLUENCE THE GROUP’S USE OF ITS TANGIBLE ASSETS___ ___________________________________________ 44 9 ANALYSIS OF THE FINANCIAL POSITION AND RESULTS ________________________ 45 9.1 INTRODUCTION______________________________________________________ 45 9.2 ORGANIC GROWTH ___________________________________________________47 9.3 COMMENTS AND ANALYSIS OF ANNUAL CONSOLIDATED RESULTS FOR FISCAL YEARS 2008 AND 2009__________________________________________ 48 9.3.1 REVENUE ___________________________________________________________ 48 9.3.2 OPERATING MARGIN AND OPERATING INCOME____________________________ 49 9.3.3 OTHER INCOME STATEMENT ITEMS _____________________________________ 50 9.3.4 PUBLICIS GROUPE S.A. (PARENT COMPANY OF THE GROUP) __________________ 50 9.4 USE OF ASSUMPTIONS AND ESTIMATIONS IN THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS___________________________ 51 10 CAPITAL RESOURCES AND INDEBTEDNESS __________________________________ 52 10.1 SOURCE AND AMOUNT OF THE GROUP’S CASH FLOWS AND DESCRIPTION OF THESE CASH FLOWS________________________________________________ 52 10.2 INFORMATION ON THE GROUP’S DEBT ___________________________________ 53 10..3 INFORMATION ON BORROWINGS AND THE STRUCTURE OF THE GROUP’S FINANCING ______ ____________________________________ 54 10.4 INFORMATION CONCERNING ALL RESTRICTIONS ON USE OF CAPITAL, WHICH CAN INFLUENCE, DIRECTLY OR INDIRECTLY, THE GROUP’S BUSINESS _____ 56 10.5 INFORMATION CONCERNING EXPECTED SOURCES OF FINANCING THAT WILL BE NECESSARY TO SATISFY THE COMMITMENTS DISCUSSED IN CHAPTERS 5.2.3 AND 8.1_______ _____________________________________ 56 10.6 OFF‐BALANCE SHEET ARRANGEMENTS ___________________________________ 56 10.7 CONTRACTUAL OBLIGATIONS___________________________________________ 56 11 RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES______________________ 57 12 OUTLOOK____________________________________________________________ 60 13 FORECASTS OR EARNINGS FORECASTS_______________________________________ 62 ii Publicis Groupe S.A. • Reference document 2009 14 CORPORATE GOVERNANCE, MANAGEMENT AND SUPERVISORY BODIES, AND EXECUTIVE MANAGEMENT__________________________________________ 63 14.1 MEMBERS OF THE MANAGEMENT BOARD AND THE SUPERVISORY BOARD ______ 63 14.2 CONFLICTS OF INTEREST WITHIN GENERAL MANAGEMENT AND SUPERVISORY DIVISIONS________ __________________________________ 74 14.3 INFORMATION ON THE EXECUTIVE COMMITTEE (“P12”) _____________________ 75 15 COMPENSATION AND BENEFITS OF MEMBERS OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD __________________________________________________ 77 15.1 COMPENSATION AND BENEFITS_________________________________________ 77 15.2 TOTAL AMOUNTS ALLOCATED BY THE COMPANY OR ITS SUBSIDIARIES FOR THE PAYMENT OF PENSIONS AND OTHER BENEFITS _____________________ 85 16 BOARD PRACTICES_____________________________________________________ 93 16.1 INFORMATION REGARDING SERVICE AGREEMENTS OF THE MEMBERS OF THE MANAGEMENT AND SUPERVISORY BOARDS ________________________ 93 16.2 INFORMATION ON THE NOMINATION COMMITTEE, THE COMPENSATION COMMITTEE AND THE AUDIT COMMITTEE ________________________________ 93 16.3 REPORT OF THE SUPERVISORY BOARD CHAIR ON THE PREPARATION AND ORGANIZATION OF THE SUPERVISORY BOARD WORK AND THE INTERNAL CONTROL PROCEDURES_____ __________________________________________ 97 16.3.1 PREPARATION AND ORGANIZATION OF THE SUPERVISORY BOARD’S WORK______ 97 16.3.2 RISK MANAGEMENT AND INTERNAL