PUTEAUX, FRANCE--(Marketwire - Feb 19, 2013) -
2012 Revenue
Full year:
Revenue: EUR 1,778 million
-- Revenue growth: +8%
-- Organic revenue growth: +2.1%
-- Digital weight: 26% of revenue
Fourth quarter:
Revenue: EUR 521 million
-- Revenue growth: +5.5%
-- Organic revenue growth: +1.1%
Net New Business1 for the year: EUR 1,675 million (+22% on 2011)
David Jones, Havas CEO, said: "2012 was a good year for the Group,
considering
the global economy remains challenged especially in Europe. Our North
America
business
strengthened in H2 posting good growth and our performance was strong in
LATAM
and APAC. The momentum at Havas is excellent following the successful
rebranding
of our divisions and the simplification of our structure. We continue to
see
good new business wins and growth of digital, supported by the unique co-
location of our media, creative and digital teams. The year risks to be
another
challenging one, but these factors, along with promising activity in
January
2013, give us confidence in Havas's ability to continue to perform."
1. REVENUE
Consolidated Group revenue for 2012 was EUR1,778 million, an increase of 8%
over
2011 on an unadjusted basis. Revenue for the 4(th) quarter of 2012 was
EUR521
million compared with EUR492 million for the equivalent period in 2011,
representing growth of +5.5% on an unadjusted basis.
Organic growth for the full year was solid at +2.1%. Q4 organic growth was
+1.1% largely impacted by a high baseline compared to Q4 2011.
Over the year, the Euro depreciated against the US dollar, producing a
positive
exchange rate impact of EUR41 million for full year 2012 for this currency
only.
The total exchange rate impact is EUR63 million.
Digital and social media once again increased their contribution to Group
revenue as the Group pressed ahead with its strategy of putting these
businesses
at the core of all its activities and agencies around the world. With no
significant acquisition over the course of the year, digital and social
media
accounted for 26% of total Group revenue in 2012.
Geographic distribution of organic revenue for the 2012 financial year was
as
follows:
See table in attached release.
Europe:
Europe was close to flat over the full year 2012 with -0.4% in organic
revenue.
France also ended the year close to flat due to its creative agencies and a
strong performance from Havas Media. Havas Media's performance in Q4 was
largely
impacted by a high base in the prior year's quarter. By sector, corporate
and
financial communications fell back while BETC strengthened its position as
the
leading French agency as a result of significant organic growth.
The UK outperformed the rest of Europe in 2012, due in large part to recent
wins
by Havas Worldwide London, to BETC London (a startup launched just over a
year
ago) and to initial strong performance at our recently acquired Havas Lynx
agency, a digital specialist in healthcare communications.
2012 full year revenue for the rest of Europe was down by -1.2%. Q4 saw a
temporary downturn in media in Spain, Portugal and Switzerland, while
Belgium
and Turkey remained strong.
North America: The region posted full year growth of +3.3%, proving
remarkably
dynamic and especially so in Q4, with growth of +6.5% driven by digital,
advertising, healthcare communications and media activities.
Rest of world: Asia-Pacific reported full year growth of +8.7% for 2012.
Host
lost the Vodafone Hutchison account which impacted Q4, but the agency
largely
made up for the loss by winning the Coca-Cola account. Creative and media
activities in China continued to perform well through the year. However IPO
PR
consultancy and field marketing were also soft in the period. The United
Arab
Emirates, India and Singapore were Asia's main growth drivers throughout
2012.
In Latin America, Argentina, Colombia, Peru and Uruguay delivered double
digit
organic growth throughout the year while Mexico grew progressively. The
biggest
contributions to the region's strong performance came from digital, media
expertise and healthcare communications.
The Group will publish its 2012 annual results on March 21(st), 2013, after
market close.
2. NET NEW BUSINESS(1)
Net new business(1) won in 2012 amounted to EUR1,675 million, a 22%
increase on
2011 and one of the best three performances of the past decade.
Among the most significant wins in the fourth quarter of 2012:
* Havas Worldwide won global data duties for Unilever and was appointed
digital agency of record for the Snuggle fabric softener brand. BETC was
chosen as global integrated agency for Louis Vuitton and Berluti. Havas
Worldwide Munich won institutional communications and all PR activities
for
Osram worldwide. Havas Media International France won the global account
for
Deezer. Havas Media Asia Pacific was appointed global agency for the
Shangri-La Hotels & Resorts luxury hotel group. Havas Media won the global
account for Remy Cointreau and Arena Miami won the Natura account for five
markets.
* On the strength of its integrated offering, Havas won the account for
the
launch of a second series of euro bank notes for the European Central
Bank:
Havas Worldwide Düsseldorf will be responsible for mass media
communications
and international coordination, Havas Worldwide Amsterdam for online
communications and Havas Media Frankfurt for media planning and buying in
all 17 Eurozone countries. In France, Havas Worldwide Paris, Havas Event
and
Havas Productions will take the lead on strategic consultancy, PR and
events
and Havas Digital will be responsible for the multilingual microsite.
* In North America, Havas Worldwide Chicago won digital and eCRM for
Citibank
credit cards.
* In Latin America, Havas Media won MSD, Nacional Monte de Piedad, Nikon
and
Hard Rock Hotel.
* Account wins in France included La Poste, McDonald's, Club Med Gym and
GMF;
in Germany, corporate design for Deutsche Bank; CRM for L'Oréal in
Poland;
internal communications for sanofi (from New York), Adecco in Belgium, DHL
in the Philippines, Generali in Italy, Ricola in the UK and Hermès
Parfums
in China.
* Purely digital wins included Pizza Hut in Hong Kong, Max Life Insurance
in
India, Foodpairing in Belgium, H&M in Spain, Perfume Holdings in twelve
markets, the Philips global account and children's charity War Child in
the
UK.
The detailed list of the most significant wins of 2012 is given in Annex 1.
3. CORPORATE SOCIAL RESPONSIBILITY
In keeping with its strategy and commitment, Havas continued demonstrate
its
leadership on the CSR front through the following initiatives:
* Publication of the Group's first Sustainability Report, based on
information
provided by our internal CSR reporting tool and shedding light on the many
initiatives undertaken within the Group and progress made in meeting its
objectives.
* As a member of the media planning and buying industry federation UDECAM,
the
Havas Media France agency took part in the first collective "office life"
carbon footprint assessment of leading media agencies.
The process involved gathering data on all the agencies' activities (media
buying, digital) and culminated, thanks to widespread media cooperation, in
a
provisional assessment of greenhouse gas emissions generated by their TV,
press,
Internet and radio media buying.
* The 3(rd) One Young World summit (www.oneyoungworld.com) was held in
Pittsburgh in October 2012. Dubbed "Young Davos" by CNN, the aim of One
Young World (co-founded by David Jones and Kate Robertson) is to provide a
platform for today's young people, the leaders of tomorrow, to bring about
positive changes in the world. 1,300 young delegates (all aged under 25)
from 183 countries, accompanied by 40 world famous Counsellors including
former UN Secretary-General Kofi Annan, former US President Bill Clinton,
Professor Muhammad Yunus and Twitter founder Jack Dorsey, came together to
create tangible initiatives to address some of the pressing issues the
world
faces. Over 200 firms, among them some of the world's largest including
Google, Unilever, L'Oréal, Apple, Accenture, Puma and Facebook,
showed their
support by sponsoring delegates.
4. AWARDS AND ACCOLADES
A number of Group agencies won recognition for their work in the fourth
quarter
of 2012:
"The Bear" by BETC for Canal+ was the world's most awarded TV spot, not
just of
2012 but also in the history of the Gunn Report.
At the Cresta Awards, the Group collected 16 awards, including Agency of
the
Year for BETC and Network of the Year for Havas Worldwide. The Group won
awards
in a total of 11 categories (including four for "The Bear") plus three
Grand
Prix awards (two for BETC for "The Bear" and one for Arnold Boston).
At the London International Advertising Awards, Group agencies garnered 13
awards: a Grand Prix for BETC, five Gold (two for BETC and three for Havas
Worldwide London), four Silver (two for Havas Worldwide New York, one for
Arnold
Boston and one for BETC) and three Bronze.
The Epica Awards brought the Group a total of 19 awards. BETC took six of
them,
including one Gold. BETC London won three awards, including one Gold. Havas
Worldwide London took two, including one Gold, and Havas Worldwide Paris
also
won a Gold. Havas Worldwide Düsseldorf, Havas Worldwide Zürich,
Havas Tunisia,
Havas Worldwide Helsinki, H Paris, Havas Worldwide Amsterdam and Havas 360
together accounted for the remainder.
Eurobest added another 19 awards to the Group's tally, including the Grand
Prix
for BETC's "The Bear", which also scooped another seven awards including
four
Gold. Havas Worldwide London won three awards and Leg, Havas Worldwide
Paris,
Havas Worldwide Amsterdam, Havas Worldwide Vienna and Arnold Amsterdam were
also
winners.
At the Cristal Festival, Group agencies notched up a total of 29 awards,
including one Grand Prix (BETC) and six Gold (four for BETC, one for H
Paris and
one for Havas Worldwide Amsterdam). MPG-MC, Havas Worldwide London, Leg,
W&Cie,
Arena Media, Cake London and Havas Digital were also among the awards.
Group agencies also won numerous awards in digital:
At the Lovies, Havas Worldwide Digital Lisbon won a People's Lovie and a
Silver.
Havas Worldwide Amsterdam and H also each took a Silver.
Havas PR USA was named 3(rd) "Most Social Media Agency in the World" by
Sociagility.
At the Boomerang Awards, Havas+Palm won in three categories including best
online campaign for Mobiliz.
At the BIMA Awards, AIS London was named Agency of the Year and took awards
in
three categories for its "Save the 1Day" campaign for Sony Music/ Syco.
At the OMMA Awards (for Online Advertising Creativity), the "Globalize your
thinking" campaign for Oppenheimer Funds by MPG Media Contacts won two
awards,
including the coveted "Best in Show".
In other disciplines:
Fuel Lisbon was named Agency of the Year at the Premios a la Eficacia and
Arena
Media as Media Agency of the Year.
At the Achap Chile, Havas Worldwide Santiago picked up 17 awards, including
five
Gold.
At the PR News PR People Award, four members of Havas PR USA took top
awards,
including "PR News Hall of Fame" and "Tweeter of the Year".
At the Key Awards, Havas Worldwide Milan won the special prize as well as
the
"Beverages" category.
At the W3 Awards, H4B Chelsea won one Gold and five Silver and Havas
Discovery
two Gold and three Silver awards.
ANNEX 1: Net New Business 2012
Havas Creative Group
Q1
Ambank: Euro RSCG Malaysia appointed agency of record
American Eagle Outfitters: Arnold
Atlantic City: Euro RSCG New York appointed agency of record
Banesto: Euro RSCG Spain won digital duties
BBVA: Euro RSCG Colombia won social media business
Burger King: Cake UK chosen as consumer agency in the UK and Ireland
Carlsberg: Euro RSCG APAC won ATL advertising, digital, social media, PR
and
activation business, all of which will be managed by a cross-market
integrated
team based in Singapore, Malaysia and Hong Kong
Claire's Accessories: Euro RSCG Chicago won the global account
DHL: Euro RSCG Mexico won the advertising business
eHarmony: won by Euro RSCG Brazil
EON: EHS 4D won the relational marketing account
Expedia: Euro RSCG 4D Matrix appointed to carry out SEO duties for the
operator
in India
Grupo Vitro: Euro RSCG Mexico won the integrated communications account for
Vitro
GSK: Euro RSCG Life
Häagen Dazs: Euro RSCG Middle East won the Häagen Dazs regional
PR account
Haribo: Euro RSCG Moscow won Haribo's digital business
HBO: Cake UK won the campaign for the DVD release of the Games of Thrones
series
Ideal Standard: Euro RSCG London chosen to manage pan-European advertising
Idesa: Euro RSCG Middle East won the PR duties
Kraft: Euro RSCG Milan won digital and social media duties for the Fonzies
brand
and digital duties for Hag and Sottilette
La Roche-Posay: Euro RSCG BETC 4D won the digital business
Lycra: Euro RSCG San Francisco appointed global agency of record
Nokia: Euro RSCG appointed to handle digital business for Nokia in India
Pekao Bank: Euro RSCG Warsaw appointed agency of record
Peugeot: Euro RSCG Malaysia appointed to develop the regional launch
campaign
for a new auto model and Euro RSCG Prague won a launch event for Peugeot
Sony Playstation: Euro RSCG Chicago won the digital, social media, mobile
and
experiential business for the PlayStation and PS+ network in the US
Superbock: Euro RSCG Lisbon won the advertising, digital, packaging, point
of
sale and events duties for Superblock beer
Telefonica: Euro RSCG Prague appointed to handle BTL advertising
Thomas Cook: Euro RSCG London won the advertising account
Volvo China: Arnold
Yili: Euro RSCG China was appointed agency of record for six Yili dairy
brands
Q2
Aivoria: Euro RSCG Malaysia won the Elianto, Bonita and Tiamo brands
AXA: Euro RSCG C&O for PR
Bel Brands: Euro RSCG Chicago won the advertising account
Belvedere: Euro RSCG Toronto chosen to handle social media duties
BIC: Euro RSCG Milan chosen for BTL and social media business and Euro RSCG
Dubai for advertising
British Petrol: Project House for digital duties
Chicco: Euro RSCG Sao Paulo chosen for ATL and BTL digital business
Comptoir des Cotonniers: BETC Luxe
Ferrero: Euro RSCG Klan (Turkey) for digital and social media
Giorgio Armani: BETC Luxe chosen to manage advertising for the Giorgio
Armani
Fragrance Business (Acqua di Gio, Acqua di Gioia, Code Luna, etc.) and the
Giorgio Armani Beauty business (skin care and make-up)
IBIS hotels: The Red Agency won the PR and communications account for Ibis
(Groupe Accor), and Euro RSCG Dubai won the advertising business for Accor
Intel Asus: Euro RSCG New York
KB Bank: Euro RSCG Prague won the social media business of Komercní
Banka
La Caixa: Euro RSCG Spain for La Caixa Private & Personal Banking
Lego: Euro RSCG Prague for social media duties
Novartis: Euro RSCG Life
Parry Nutraceuticals: Euro RSCG 4D Matrix.
P&G: Project House was selected to handle digital business for the
Gillette,
Pantene and Wella brands, and Euro RSCG 4D Milan won the social media
account
for Nurofen.
Reckitt Benckiser: Euro RSCG Corporate Communications Middle East chosen to
handle PR for Gaviscon, Scholl, Veet and Clearasil
Samsung: BETC London chosen to steer a global project for Samsung Smart TV
Sanofi: C&O appointed to handle internal communications for sanofi France
Sephora: C&O won the international recruitment communications account
Sony Playstation: Euro RSCG Austria chosen for the BTL business
Thalys: Rosa Park won the communications, media, CRM and social media
business
for Thalys in France, Belgium, Germany and the Netherlands.
Thomas Cook: Euro RSCG PR Manchester
Virgin Mobile: Euro RSCG Sydney appointed as one of Virgin Mobile's
agencies of
record
Q3
AARP: Havas Worldwide Chicago
Coca Cola Light: BETC London
Danone: Havas Worldwide Kuala Lumpur
Danone Activia: Havas Worldwide Melbourne
Danone Infant Nutrition: Havas Worldwide China/Hong Kong
Del Taco: Camp + King
Durex: Havas Worldwide Italy
Energa: Havas PR Warsaw
Fab: Arnold
Hellman's Supreme (Unilever): Havas Worldwide Chile
Jil Sander Fragrances (Coty Prestige): BETC Luxe
Kraft Foods: Havas Worldwide Prague
Lego: Havas Worldwide Prague
Mead-Johnson Infant Nutrition: Havas Life Mexico
National Lottery: Havas Worldwide Brussels
Oddka: Havas Worldwide London & Havas Worldwide PR North America
Pepsico: Havas Worldwide Mexico
Pernod Ricard: Havas Worldwide PR North America
Playstation: Host Australia
Prudential Insurance: Havas PR Warsaw
Seagate: Havas Worldwide London
Sovereign/Santander: Arnold
Staples: Havas Worldwide London
Turismo de Portugal: Havas Worldwide Portugal
Ubisoft/Just4Dance: BETC
VO5 Express Yourself: Havas Worldwide London
Q4
Adecco: Boondoggle
Berluti: BETC
Citibank: Havas Worldwide Chicago
Club Med Gym: BETC
Deutsche Bank: Havas Worldwide Dusseldorf
DHL: Havas PR Agatep
ECB: Havas Worldwide Europe
Food Pairing: Boondoggle
Jaguar Land Rover: Havas People UK
L'Oreal: Marketing House in Poland
La Poste: BETC & Havas Worldwide Paris
Louis Vuitton: BETC
Max Life Insurance: Havas Worldwide Delhi
Osram: Havas Worldwide Munich
Pizza Hut: Havas Worldwide Hong Kong
Sanofi: Havas People NY
Unilever: Havas EHS & Havas 360
War Child: Cake
Havas Media Group
Q1
Atlantic City Alliance: MPG Media Contacts USA
Adeslas Segurcaixa: MPG Media Contacts Spain
Bavaria: Arena Media Colombia
Burger King: Havas Sports & Entertainment/Cake UK
Carnival Cruises: MPG Media Contacts UK
Cencosud: Arena Argentina
Center for Disease Control and Prevention: MPG Media Contacts USA
Ceresita: MPG Chile
Dyson: MPG Media Contacts Spain
Edun: MPG Media Contacts USA
Evo/NovaCaixaGalicia: MPG Media Contacts Spain
Freixenet: MPG Germany
Grefusa: MPG Spain
Nölke/Gutfried: MPG Germany
Hawaianas: Havas Media International (Surveys)
Huawei: MPG Germany at pan-European level
Hyundai: MPG China
Lansay: Havas Media France
Lierac/Ales Groupe: Havas Media France
Mundo Fox: MPG Media Contacts USA
Naranya: iGlue Brazil
Nature Bounty: MPG Media Contacts USA
Net-A-Porter.com: MPG Media Contacts
Odesur Juegos Sudamericanos Santiago 2014: Havas Sports & Entertainment
Chile
Parle: MPG India
Perfume Holding: Havas Media International Global
Penguin: MPG Media Contacts UK
Pokerstars: MPG Media Contacts Spain
Puig/Paco Rabanne: Havas Sports & Entertainment/Cake Paris
Reckitt Benckiser: MPG Austria and Switzerland
Relais & Chateaux: Havas Media International Europe
Roland Garros: Havas Sports & Entertainment France & Havas Sports &
Entertainment China
Santander: Arena Media Chile and Spain
Sony: Havas Sports & Entertainment Miami
StriVectin: Havas Sports & Entertainment/Cake USA
Grupo Vips: MPG Media Contacts Spain
Whirlpool: Havas Media International Miami
Q2
Aeroflot - HVM NEC/Arena Russia. Won France, Italy, Germany, China, Japan,
Korea
Azco Nobel - Havas Sports & Entertainment Global - Sponsorship Strategy
Betfair - Arena Media UK
Beauty Prestige International - MPG APAC (six markets)
Corpbanca - Arena Media Colombia
Coty - Havas Media International Paris Consulting project
Desjoyaux - Havas Digital France
Dr. Theiss Naturwaren - MPG Germany
Grupo Planeta (CEAC & Home English) - Arena Spain
Far East Organization - MPG International Singapore - Singapore is main
coordinating agency for media buys in China, Indonesia and Malaysia
Laboratorios Ferrer - MPG MC Spain
Fox en Español - MPG USA
Hunkemoller - MPG Netherlands - Account for Spain, Denmark, France and
Austria.
Hyundai - Havas Media France
Joyoung - Media Contacts China
JTI - Arena UK
Lacoste - Media Contacts UK
Lancome - Media Contacts Brazil
Land's End - MPG Germany
Lenovo - Arena Mexico
Laboratorios Liomont - MPG Mexico
NBA - Media Contacts US
NFL - Media Contacts US
Now TV - Cake UK (Havas Sports & Entertainment) - Launch event and PR
activities
PayPal - MPG MC UK
Procter & Gamble - Mobext Philippines
Qatar Airways - Media Contacts Brazil
Sab Miller - Arena Argentina - Won Miller, Isenbeck, Warsteiner brands
Saudi Telecom - Havas Sports & Entertainment - Sponsorship and content
creation
SNCF - Havas Media International Paris for Europe
Snow Beer - Media Contacts China
Sony - MPG Mexico
Taikang Insurance - Media Contacts China
Temasek Holdings - MPG/MC Singapore
TVS Tyres - MPG India
XL - MPG MC Indonesia
Q3
Albemarle & Bond Holdings: Arena Media UK
Alive: Havas Sports & Entertainment UK
Audley Retirement Homes: Arena Media UK
Axa: MPG Germany, MPG Belgium, Media Contacts Spain
Caudalie: Havas Digital France (France, Germany and Spain)
Choice Hotels International: MPG Media Contacts US
City Index: Arena Media UK
Clorox Professional Products: Havas Digital US
Coca Cola Zero: Havas Sports & Entertainment France
Coty: Havas Digital Hungary
Office National Croate de Tourisme: Havas Digital France
Dirección General de Tráfico: MPG Media Contacts Spain
DisToyota: Arena Media Colombia
EDF: MPG Media Contacts UK and Havas Sports & Entertainment UK
European Central Bank: MPG Media Contacts Europe
Gas Natural Fenosa: Arena Media Spain & AIS Spain
Honda: Cake/Havas Sports & Entertainment UK
Illva Saronno: MPG Media Contacts UK
Konami: MPG Media Contacts Spain
Lan Airlines: MPG Media Contacts Colombia
Merck: Havas Digital Miami
Mr Porter: MPG International London (UK, US, Australia, Hong Kong and
Singapore)
NBA: Havas Digital USA/Miami
NFL: Havas Digital USA
Omega Pharma: Arena Media Spain
Qatar Airways: Media Contacts/Havas Digital Brazil
Santiago 2014 (Juegos Panamericanos): Havas Sports & Entertainment Chile
Sony Pictures: ignition/Havas Sports & Entertainment LATAM
Sugon: Media Contacts/Havas Digital China
Study Adelaide: Ecselis/Havas Digital Australia
Tata Motors: MPG India
Tyco: MPG Media Contacts USA
Warby Parker: Havas Digital US
We7: Arena Media UK
Whirlpool: MPG Media Contacts Mexico
YFY Investment: MPG China
Q4
Adidas: Havas Sports & Entertainment Italy and Havas Sports & Entertainment
UK
Coca Cola: Havas Sports & Entertainment Mexico and Havas Sports &
Entertainment
Poland
Deezer: Havas Media International France - Global Account
Generali: Havas Sports & Entertainment Italy
GMF: Havas Sports & Entertainment France
Hard Rock Hotel: LATAM (Digital Media)
Hermes Perfume: Havas Media China
H&M: Arena Media Spain
MSD: Havas Media LATAM (Pan Regional SEO/SEM)
Mouaward: Havas Media Middle East
Nacional Monte de Piedad: Arena Media Mexico
Natura: Arena Miami for five markets
Nikon: Havas Digital Brazil
Pearle: Arena Media Austria
Perfume Holding: Havas Media International France, Saudi Arabia, Indonesia,
India, Philippines, Malaysia, South Korea, Italy, Brazil, Japan, Mexico and
Russia
Philips: Global (Search)
Remy Cointreau: Global
Renault Nissan: Havas Media in Colombia and Argentina
Ricola: Arena Media UK
Shangri La: Havas Media Global
Turkey Tourism: Havas Media Germany, UK, Sweden, Norway, Denmark
Volkswagen: Havas Media International Miami (LATAM)
Zambon: Havas Media Europe
ZSL London: Arena UK
ANNEX 2: 2011 Organic Growth by quarter
See table in attached release.
About Havas
Havas (Euronext Paris SA: HAV.PA) is one of the world's largest global
advertising, digital and communications groups. Headquartered in Paris,
Havas
operates through its two Business Units, Havas Creative and Havas Media.
Havas Creative Group incorporates the Havas Worldwide
(www.havasworldwide.com)
network - formerly Euro RSCG Worldwide - (316 offices in 75 countries), the
Arnold (www.arn.com) micro-network (16 agencies in countries on 5
continents) as
well as several other strong agencies.
Havas Media Group (www.havasmedia.com) is the world's fastest growing media
group, operating in over 100 countries, and incorporates two major
commercial
brands: Havas Media (formerly MPG) et Arena.
A multicultural and decentralized Group, Havas is present in over 100
countries
through its networks of agencies and contractual affiliations. The Group
offers
a broad range of communications services, including digital, advertising,
direct
marketing, media planning and buying, corporate communications, sales
promotion,
design, human resources, sports marketing, multimedia interactive
communications
and public relations. Havas employs approximately 15,000 people. Further
information about Havas is available on the company's website: www.havas.fr
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.
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[HUG#1679381]