UNIVERSAL REGISTRATION DOCUMENT ANNUAL FINANCIAL REPORT CONTENTS MESSAGE FROM THE CHAIRMAN OF THE SUPERVISORY BOARD 02 5 COMMENTS ON THE FINANCIAL YEAR MESSAGE FROM THE CHAIRMAN • 185 5.1 Introduction OF THE MANAGEMENT BOARD 04 • 186 5.2 Organic growth HISTORY 06 • 188 OUTLOOK 07 5.3 Analysis of consolidated income statement • 189 ACTIONS TAKEN IN THE FACE 5.4 Financial position and cash • 191 OF THE COVID- 19 PANDEMIC 08 5.5 Publicis Groupe SA BUSINESS MODEL 10 (parent company of the Groupe ) VALUE CREATION 1 1 • 194 5.6 Dividend distribution policy ORGANIZATION 12 • 196 5.7 Outlook TALENT 13 • 197 KEY FIGURES 14 6 2020 CONSOLIDATED FINANCIAL STAKEHOLDERS 16 STATEMENTS GOVERNANCE 17 • 199 6.1 Consolidated income statement GLOSSARY AND DEFINITIONS 18 • 200 6.2 Consolidated statement of comprehensive income • 201 6.3 Consolidated balance sheet 1 PRESENTATION OF THE GROUPE • 202 • 21 6.4 Consolidated cash fl ows statement 1.1 Groupe history • 203 • 22 6.5 Consolidated statement of changes 1.2 Organization chart in equity • 27 204 1.3 Activities and strategy • • 28 6.6 Notes to the consolidated fi nancial 1.4 Investments statements • 35 • 206 1.5 Major contracts 6.7 Statutory auditors’ report on the • 38 consolidated fi nancial statements 1.6 Research and development • 269 • 38 7 2020 ANNUAL FINANCIAL STATEMENTS 2 RISKS AND RISK MANAGEMENT • 275 • 39 7.1 Income Statement 2.1 Main risk factors • 276 • 40 7.2 Balance sheet 2.2 Internal control and risk management • 277 7.3 Cash fl ows statement procedures • 279 • 45 7.4 Notes to the fi nancial statements 2.3 Insurance and coverage of risks • 48 of Publicis Groupe SA • 280 3 GOVERNANCE AND COMPENSATION 7.5 Results of Publicis Groupe SA over • 49 the past fi ve years 3.1 Governance of Publicis Groupe • 298 • 50 7.6 Statutory auditors’ report 3.2 Compensation of corporate offi cers on the fi nancial statements • 84 299 3.3 Related-party transactions • • 132 3.4 Statutory auditors’ special report 8 COMPANY INFORMATION AND CAPITAL STRUCTURE on related-party agreements • 303 • 133 8.1 Information about the Company • 304 4 CORPORATE SOCIAL RESPONSIBILITY – 8.2 Shareholding structure NON-FINANCIAL PERFORMANCE • 306 • 135 8.3 Information on the share capital 4.1 Talent • 309 • 137 8.4 Stock market information 4.2 Clients and partners • 316 • 154 4.3 Citizen-consumers and society 9 GENERAL SHAREHOLDERS’ MEETING 319 • 161 • 4.4 Business ethics • 166 10 ADDITIONAL INFORMATION 4.5 Environment and climate change • 321 • 173 10.1 Documents on display 4.6 Sustainable development goals • 322 • 178 10.2 Person responsible for the Universal 4.7 Assessments and non-fi nancial Registration Document and declaration • 323 performance 10.3 Statutory auditors • 179 324 4.8 CSR reporting methodology • • 180 10.4 Cross-reference table for the Universal 4.9 Verifi cation report on the declaration Registration Document • 325 of non-fi nancial performance 10.5 Cross-reference table for the annual 182 • fi nancial report • 328 10.6 Cross-reference table for the management report • 329 10.7 Cross-reference table for the corporate governance report • 331 10.8 Cross-reference table for the declaration of non-fi nancial performance • 333 10.9 Historical fi nancial information included by reference • 336 2020 UNIVERSAL REGISTRATION DOCUMENT ANNUAL FINANCIAL REPORT GROUPE PROFILE Publicis Groupe is a world leader in communications. The Groupe supports its clients throughout the marketing and communication value chain to help them win in a world of platforms. It offers them dynamic, diverse and disruptive creativity, targeted media expertise on a large scale, as well as data and technological skills enabling them to build in-depth knowledge of their consumers and create direct digital channels to engage with them. Clients have always been at the heart of the Groupe ’s model and benefit from a fluid and unified organization by country. Founded in Paris in 1926, the Groupe is present in more than 100¢countries and has nearly 80,000¢employees. The Universal Registration Document was filed on April 9, 2021 with the AMF (the French Financial Markets Authority) in its capacity as competent authority under Regulation (EU) 2017/1129, without prior approval, pursuant to article 9 of said regulation. The Universal Registration Document can be used for an initial public offering of financial securities or for the admission of financial securities to trading on a regulated market if it is supplemented by a Transaction Note (or financial securities note) and, where applicable, a summary of, as well as all the amendments made to, the Universal Registration Document. The whole package is then approved by the AMF pursuant to (EU) Regulation 2017/1129. 2020 UNIVERSAL REGISTRATION DOCUMENT 1 PUBLICIS GROUPE S.A. MESSAGE FROM THE CHAIRMAN OF THE SUPERVISORY BOARD 2020: a year in the new abnormal era hen news of the pandemic spread and lockdown measures were taken across the world, three imperatives were Wimposed on us: preservation of the physical and mental health of employees, service continuity for our clients under unprecedented conditions and the immediate implementation of plans to limit the consequences of this crisis, the extent and duration of which Maurice Lévy no-one could have yet imagined . Chairman of the Supervisory Board The most alarming news circulated about the impending collapse of the global economy and, in particular, of our industry. Advertising? Digital? The media? In the spring of 2020 forecasts while preparing for the time when the world would emerge were predicting a 25% fall in revenue for our industry. from this crisis. It is not enough to just get through a crisis Although past experience enabled certain immediate reflexes to minimizing the damage; it is also necessary to maintain the be triggered, this crisis was not comparable because its health ability to rebound, to conquer and to grow. nature meant it affected the whole world. All the teams around the world, without exception, have shown The Management Board, with the support of the Supervisory an iron will, an extraordinary talent and human qualities that Board, has worked to achieve, literally , a real tour de force. have enabled Publicis to provide all its clients with innovative Any misjudgment could have consequences throughout this solutions to succeed in this period of intense turbulence. At the extraordinary year and beyond. same time, they had to continue Epsilon’s integration programs, rethink our internal operating model by putting data at the heart Faced with the challenges, starting with the most important, of our proposals and make ad hoc decisions according to the that of ensuring the safety of our employees and providing them news of the day, to limit the negative effects on the Groupe’s with the means to work in this abnormal world that was taking fundamentals. shape, Management, under the leadership of Arthur Sadoun, responded in a determined, creative and efficient manner. A new abnormal? The world has witnessed a real disturbance of the global Without a doubt. economy and, at the same time, the strength of companies that have been able to react. Thus, throughout the year in this new normal, it was remarkable to see people adopt new habits in all Faced with the challenges, areas. Our employees put in a huge amount of effort by changing their starting with the most important, way of life, inadvertently imposing the intrusion of professional that of ensuring the safety of our life on their families and juggling the day-to-day imperatives and deliverables for our clients. The psychological pressure employees and providing them with associated with the various uncertainties has been a severe test for everyone. the means to work in this abnormal For our clients, the challenges were no less and our teams had to world that was taking shape, show even more creativity, wit and talent to revise meticulously crafted campaigns simply because they were inadequate in this Management, under the leadership world of emergencies and anxiety, and to propose solutions that were better suited and adapted to the new psychology of of Arthur Sadoun, responded consumers. in a determined, creative and It was also necessary to rethink the Groupe’s plans for this very unusual year in order to enable it to face up to the upheavals effi cient manner. 2020 UNIVERSAL RE GISTRATION DOCUMENT 2 PUBLICIS GROUPE S.A. The legitimate certainly dipped, but much less than the market as a whole, and with a margin that has held up well. expectations of our clients faced In these circumstances, the Supervisory Board considers that with unprecedented challenges, the variable compensation of employees and management was well deserved, and sends its heartfelt thanks. the necessary restructuring, the In these strange times when this new abnormal has become the norm and when global society is faced with huge problems: meticulous management of costs climate change, DE&I, and the fight against waste and and cash and the questioning pollution, the Groupe has chosen to strengthen its unwavering commitment to the consideration of Environmental, Social and of established certainties have Governance (ESG) criteria. Significant progress has been made in this area and new objectives have been set so that your placed exceptional demands company will be an exemplary in this. on the management team and 2021 is likely to be a continuation of this new abnormal, before old habits gradually return. Consumption will not pick up quickly. the Supervisory Board which, Confidence that the health situation is under better control will throughout the year and the eight have to be established before the savings accumulated during this period are spent. Although global growth is expected to meetings held, provided steadfast return, there is concern that the economy will be impacted in the long term.