Publicis Groupe (PUB) Investor Update summary

Strategic vision and competitive positioning

• Emphasis on shifting from innovation to connectivity, focusing on connecting data, capabilities, and people for business transformation.

• Ownership of data and connected identity is central, enabling engagement with 91% of adults globally and providing a unique AI advantage.

• Integration of acquisitions like Lotame and Epsilon strengthens global data reach, especially in APAC and EMEA.

• CoreAI has evolved from a strategy to a reality, with 50 pilots and 40+ clients using its modules.

• The model is built to be modular, allowing clients to adopt AI in areas with the most impact, driving confidence in growth targets.

Technology, data, and client integration

• CoreAI and Marcel platforms are fully deployed, with 100% employee access and high engagement through extensive training.

• Identity-led marketing is enabled by connecting client data, media, and content, allowing for personalized, outcome-driven campaigns.

• AI-driven content production is integrated with data, reducing waste and improving business outcomes, especially in regulated sectors like pharma.

• Clients increasingly seek to own technology but rely on external expertise for operation, leading to deeper, more embedded partnerships.

• CoreAI is being implemented in client environments, ensuring compliance, security, and transparency.

Financial outlook and operating leverage

• Guidance for 2024 remains at 4%-5% growth, with confidence reinforced by market dynamics and client feedback.

• Operating leverage is improving, with CoreAI investments (~€100m) expected to be increasingly financed by clients.

• Margin improvement is supported by AI-driven efficiencies and the ability to reallocate talent as automation increases.

• SaaS revenue is currently 6%-8% of Epsilon, but the focus remains on large clients rather than a broad SaaS rollout.

• Growth is driven by expanding the addressable market, taking share from both holding companies and system integrators.