General Meeting of Shareholders 2019 - Ipsos

© 2018 Ipsos. Assemblée générale 2018 – 4 mai 20181

General Meeting of

Shareholders

2019

© 2019 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information

and may not be disclosed or reproduced without the prior written consent of Ipsos.

May, 28th 2019


Agenda

© 2019 Ipsos. Assemblée Générale 2019 – 28 mai 2019

2

Looking back to 2018

1Q2019 Update

3

Main resolutions

41

Review of 20 years as a public

company


A review of 20 years as a public

company

© 2019 Ipsos All rights reserved. Contains Ipsos' Confidential and Proprietary information



Stock price history

Note: Base 100 as of September 24, 1999.

Ipsos vs its main peers

0

50

100

150

200

250

300

350

400

450

500

Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Ipsos

WPP

GfK

Publicis


Stock price history

Note: Base 100 as of July 1st, 1999.

Ipsos vs benchmark indices

0

100

200

300

400

500

600

700

Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Ipsos

CAC40

SBF120


231329

480538 570 604

718

857927 979 944

1 140

1 362

1 7891 712 1 670

1 785 1 783 1 781 1 750

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e

Ipsos’ performance history

10% 9% 3% 4% 4% 8% 6% 7% 7% 4,5% -3,7% 5,2% 3,8% 2,5% 2,8% 2,1% 2,2% 3,7% 3,3%

Research market growth (source: ESOMAR)

7,5%8,6%

6,5%9,1% 7,8% -3,8%

8,3%

4,6%

9,4%8,0%8,0%

13,0%

-1,0%*0,8% 0,3%

-1,0% 3,0% 2,4% 0,7%

n/a

Revenue (MEUR)Organic growth (%)XX %

* Q4 only.

** Management outlook for FY19.

12,7%

2%-4%**


Ipsos’ performance history

1,8-3,1

22,7

31,5 28,3

17,1

42,2

32,4

55,650,4

62,4

79,8 82,0

23,1

74,4

113,7

146,2 148,6

80,8

108,1

0,06

0,06

0,07 0,08

0,21 0,23

0,25

0,280,4

0,5

0,51

0,6 0,63

0,640,7

0,750,8

0,85 0,87

0,88

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

-0,2

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

Free Cash Flow (MEUR)Dividend per share (EUR)


Looking back to

2018

© 2019 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information

and may not be disclosed or reproduced without the prior written consent of Ipsos.© 2019 Ipsos. Assemblée Générale 2019 – 28 mai 2019


The core market ($45.8 billion in 2017) is resilient and growing at about 3% per year on average

2,0%

3,5% 3,7% 3,3%

5,9% 5,8%

4,3%

6,2%

2014 2015 2016 2017

Core market

Wider market

A dynamic market

Sources: ESOMAR Global Market Reports

Growth of the total research market:

The wider market ($76.3 billion in 2017) is growing faster, over 5% on average, and particularly includes the following segments:• Analytics;• Social Media monitoring;• Survey software.


Ipsos outperforms its direct competitors

Sources: Company publications, Nielsen: estimates of organic growth based on statements made by management during earning calls, Kantar: figures from WPP’s Data Investment Management division(1) H1 figure only, (2) 9M figure only

2014 2015 2016 2017 2018

0.3% -1.0% 3.0% 2.4% 0.7%

4.5% N/A 3.1% 1.8% -1.5%

0.6% -0.2% -0.9% -2.9% -2.0%

-2.0% 1.1% -1.7% -1.3% N/A1

New Way

Implementation of TUMacro uncertainties, sector changes,

intrinsic factors

→ Return to growth → Accelerate growth ‘19-21

MAJOR COMPANIES IN THE INDUSTRY: • often focused on the CPG sector;• sometimes overlook local markets; • less involved in services that use new technology, new uses and

downstream – including decisions to be taken and aligning the teams.

Note: this slide has been updated on March 1, 2019 to account for Nielsen’s and WPP’s latest publications


In millions of euros 2018 2017Change

2018 – 2017

Revenue 1,749.5 1,780.5 -1.7%

Gross profit 1,138.4 1,156.7 -1.6%

Gross margin 65.1% 65.0% -

Operating margin 172.4 182.3 -5.4%

Operating margin / revenue 9.9% 10.2% -

Other operating income and expense (5.3) (14.3) -63.3%

Finance costs (21.3) (20.4) 4.4%

Income Tax (38.5) (14.6) 163%

Net profit (attrib. to the Group) 107.5 128.5 -16.3%

Adjusted net profit* (attrib. to the Group) 125.2 127.4 -1.7%

* Adjusted net profit is calculated before (i) non-cash items covered by IFRS 2 (share-based payments), (ii) amortisation of intangible assets identified on acquisitions (client

relationships), (iii) the net tax effect of other non-operating income and expenses, (iv) the non-cash effect on changes in puts in other financial income and expense and (v)

deferred tax liabilities from goodwill, which in some countries can be amortised.

A stable adjusted net profit


In millions of euros 2018 2017Change

2018 – 2017

Gross Operating cash flow 206.3 197.2 4.6%

Change in WCR 3.5 (37.8) -

Tax and interest expense (57.8) (60.2) -5.0%

Property, plant and equipment and intangible assets

(43.6) (18.4) x2.4

Free cash flow 108.1 80.8 32.5%

Acquisitions (161.6) (15.0) -

(Purchase) / Sale of shares 1.2 6.4 -81.3%

Net change in debt 122.9 (53.3) -

Dividends (37.8) (36.4) 3.8%

Cash at end of period 168.8 137.3 22.3%

Cash flow statement:good free cash flow generation


In millions of euros 2018 2017

Shareholders’ equity 1,035 966

Net debt 575 464

Gearing 56% 48 %

Net debt (at 31/12 exchange rates) / EBITDA (at average exchange rates)

x2.8 x2.1

Interest coverage(operating margin/interest expense)

x8.3 x9.7

A solid balance sheet

Ipsos has a good liquidity position with over 400 million euros in available credit lines, following the success of its 7-year 300

million euro bond issue (2.875% annual coupon) and the refinancing of its main bank facility of 160 million euros, for 5 years (with

an option for 2 additional years), both carried out in September 2018.


2018 2017

Dividend per share 0.88 0.87

Earnings per share 2.48 3.00

Adjusted earnings per share 2.88 2.98

Dividend payout 30.6% 29.2%

Proposed dividend of 88 euro cents (+1.1%)


The pillars of Total Understanding

SERVICE LINESCLIENT

ORGANISATIONSTRONG LOCAL

PRESENCE

REINFORCED CROSS-COMPANY

CAPABILITIES

ACQUISITIONS

• Ensure competitiveness of all our services

• Use the New Services

• Better management of our client relationships, globally and locally

• Re-balance the client base among sectors

• Greater responsibility of local markets

• Greater presence in key markets

• Science Team A• Tech Team A• Ipsos Knowledge

Centre

• Opportunity• Technology• Know-how

Kick-off: 1 July 2018Implemented by: 31 December 2018


Benefits of Total Understanding

• More competitive in every market segment vs. niche players

• Worldwide leadership

• A client organisation to guarantee the value of the service to the client

• An organisation more in keeping with the client's

• Trusted partner

A more specialised offering

A more agile organisation

Increased responsibility by local markets


2%-4%

10%

Organic growth

Average EPS growth1

Dividend payout ratio

Annual acquisitions

2.5x –3.0x

Optimized leverage 25% -30%

€50M -€100M

2019-2021 Outlook

Operating margin

ATTRACTIVE GROWTH RATE

10%+ to 11%

BALANCED CASH ALLOCATION

€35M -

€45M

Capex

3 categories: opportunities, technology and know-how

Conservative and supporting growth

At least at market level

Organic and non-organic, through continued digitisation of data

collection and economies of scale

(1) On diluted EPS basis, at constant currency

2019: 10%+2021: 11%


Including: Organic growth

Developed countries 0.8%

Emerging countries 5.8%

(in millions of euros) 1Q19 1Q18 Total growth Organic growth

EMEA 185.2 167.5 10.6% 0.7%

Americas 155.4 129.4 20.1% 0.4%

Asia-Pacific 81.4 70.1 16.2% 9.9%

Revenue 422.1 367,0 15.0% 2.4%

Share of revenue by region


(in millions of euros) 1Q19 Share Total growth Organic growth

Consumers1 247.5 58.6% 9.3% 2.1%

Clients and employees2 72.3 17.1% 22.2% 1.5%

Citizens3 58.6 13.9% 27.0% 5.5%

Doctors and patients4 43.7 10.4% 23.6% 1.1%

Revenue 422.1 100% 15.0% 2.4%

Breakdown of Service Lines by audience segment:1Audience Measurement, Brand Health, Clinics & Mobility Labs, Creative Excellence, Innovation, Ipsos UU (excl.pharma), Ipsos MMA, Market Strategy & Understanding, Observer (excl. public sector),

Media Development, Social Intelligence Analytics2Customer Experience, Market Measurement, Mystery Shopping, Quality Measurement, Retail Performance, ERM3Public Affairs, Corporate Reputation4Healthcare (quantitative and qualitative)

Breakdown of revenue by audience

General Meeting of Shareholders 2019 - Ipsos

Documents

Transcript of General Meeting of Shareholders 2019 - Ipsos