February 28, 2007
Annual Results -- 2006
Strong Performance In All Areas
• Operating margin: 16.3%, +60 bp
• Revenue: €4,386 million, +6.3%
• Organic growth: +5.6%
• Net income excluding minorities: €443 million, +15%
• Free cash flow: €544 million, +14%
• Average net debt: €636 million, down 31%
• Diluted Headline EPS: €2.01, +24%
• Dividend: €0.50, +39%
Commenting on these results, Publicis Groupe Chairman and CEOMaurice Lévy said:
“Publicis Groupe teams have not only kept all their commitments, but—once again—surpassed them.
Our 2006 results are further confirmation of the effectiveness of the strategy we have pursued over
recent years. Strong organic growth and net new business are especially satisfactory as they follow the
extraordinary records set in 2005. Operating margin came in at 16.3% of revenue, a record high for our
industry, while vigorous cash generation resulted in free cash flow of over €500 million.
The strength of our financial performance has allowed Publicis Groupe to engage in major strategic
moves, notably marked by the acquisition of Digitas. This vaults us to a leading global position in
digital and interactive communications.
Beyond the performance of the Digitas business itself, this new segment will be a driver for future
growth through additions to our worldwide offering and consolidation of our strengths as a world leader
in media services and healthcare communications.
Finally, we are well placed to make the most of robust growth in emerging markets, where we will be
continuing acquisitions as opportunities arise.
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The bulk of our revenue is now drawn from segments where growth is significantly higher than in the
worldwide advertising market. I am thus confident about the future of our Groupe, and in particular
about the 2007 fiscal year.”
A dividend of €0.50 per share, 39% higher than that distributed in 2006, will be submitted for the
approval of shareholders at the General Meeting to be held at 10 a.m. on Monday, June 4, 2007.
Maurice Lévy, Chairman and CEO, presented the financial statements and management report for 2006
to the Supervisory Board of Publicis Groupe at its meeting presided by Elisabeth Badinter on February
27, 2007.
Key figures, € millions | ||||||
2005 | 2006 | Rise | ||||
Revenue | 4, 127 | 4, 386 | + 5.6% | |||
(organic) | ||||||
Operating margin before | 765 | 820 | +7 % | |||
depreciation and amortization | ||||||
As a % of revenue | 18.5% | 18.7% | ||||
Operating margin | 649 | 713 | +10% | |||
As a % of revenue | 15.7% | 16.3% | ||||
Net income excluding minority | 386 | 443 | + 15% | |||
interests | ||||||
Diluted Headline EPS | €1.62 | €2.01 | + 24% | |||
Proposed dividend per share | €0.36 | €0.50 | + 39% |
I. Highlights of 2006
• Firm organic growth |
2006 revenue of €4,386 million were up 5.6% at constant scope of consolidation and exchange rates (i.e.,
organic growth), a solid and sustained increase. Significantly, all geographical regions contributed, with
organic growth 5% in Europe, 5.1% in North America, 5.3% in the Asia-Pacific area, 9.3% in Latin
America and 20% in Africa-Middle East.
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• Satisfactory performance in net new business
Net new business won in 2006 came to $3.3 billion, with new accounts including Renault (extension to
seven new markets in Latin America and the Baltic countries), Sanofi-Aventis/Pasteur Vaccines (global)
Orange (Europe), Marriott (Asia), Kraft (marketing services, Europe), JC Penney (US), Wal-Mart (in-store
marketing, US), Sony Ericsson (global) and Crowne Plaza Hotels & Resorts (US) in advertising and
SAMS sectors, while in media buying and consultancy they included Washington Mutual (US), Oracle
(global), Avaya (global), Del Monte (Europe) and Beam Global Spirits & Wine (global).
• Operating margin sets new record
Operating margin increased to 16.3% -- the strongest showing in the entire industry, representing a rise
of 60 basis points from 2005 level of 15.7%. This exceeded our targets, and reflects an overall
reduction in Groupe operating expense associated with rationalization of structures and a decline in
depreciation and amortization charges.
The rise was achieved despite an additional €28 million charge for Sarbanes-Oxley compliance.
Progress on the Horizon Program for the rationalization of business structures across units continued
during the year.
• Net income up 14.8%
Net income increased 14.8% to €443 million in 2006, while headline net income rose an even stronger
28% to €452 million.
This performance was essentially attributable to vigorous improvement in operating margin and a steep
€42 million reduction in net interest and related expense. At the same time, reorganization of the
Groupe's legal structure and a reduction in the number of entities helped to bring the effective tax rate
down from 32% to 30.2%, meeting the Groupe's target one year ahead of schedule.
• Diluted Headline EPS up 24%
Diluted headline EPS increased 24% to €2.01 in 2006, while diluted EPS rose 12% from €1.76 to
€1.97.
• Further steep decline in average net debt
The Groupe's average net debt in 2006 was cut by a third, to €636 million. This was achieved on top of
the €200 million paid out for the redemption of 80% of the equity warrants issued in connection with the
Bcom3 acquisition in 2002. The ratio of net debt to equity was unchanged from the end of the previous
year at 0.10.
• Free cash flow over $500 million
As already announced, the Groupe continued its Focus on Cash program to generate free cash flow of
€544 million before changes in working capital requirement. This strong performance, a 13.8%
increase over 2005 levels, reflects strong growth in cash flow from
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operations and tight control of capital expenditure. It demonstrates the Groupe's ability to consistently
generate free cash flow of at least €400 million to €500 million a year before changes in working
capital requirement.
• Steep dividend Increase of 39%
The proposed dividend to be submitted to shareholders at the General Meeting on June 4 is €0.50
per share, 39% more than in 2005, and setting the payout ratio at 24%. The dividend will be made
payable on July 4, 2007.
II. Strategy and outlook
• A major strategic move into digital/interactive communications
Digital communications generally and interactive communications in particular are now omnipresent in
consumers' daily lives, creating new challenges and opportunities for local and global brands. To help
clients meet these challenges, Publicis Groupe has made winning a leading position in digital
communications worldwide a top strategic priority.
This means integrating digital capabilities at every level of the Groupe’s activities, with action focused
on:
- Acquisitions to accelerate worldwide deployment of business strength and expertise
- - Bolstering support for in-house development of new highly innovative competencies
- Deriving 25% of total revenue from digital, interactive and mobile activities by 2010
- --> Digitas acquisition—the cornerstone for the construction of Publicis Groupe' worldwide
digital offering
The acquisition of Digitas finalized at the end of January 2007, gives Publicis Groupe an ideal base
for expansion in digital communications, and will provide critical expertise for the Groupe's holistic
offering around the world.
Under the leadership of David Kenny, Digitas CEO and a member of the Publicis Groupe Executive
Committee, worldwide growth in digital and interactive business will be driven by:
- Training and recruitment of new digital talent
- An active policy of targeted acquisitions, particularly in Europe and Asia.
- --> Consolidating leadership in media agencies, a key strength for expansion in digital
communications
Publicis Groupe has successfully anticipated the shift to digital communications in an increasingly
complex and fragmented media landscape. In line with this trend, consultancy services account for a
growing proportion of the Groupe's media revenue, reflecting the need for highly specialized
expertise as information flows take ever more varied routes.
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In addition to ongoing investment in proprietary resources, Publicis Groupe's media businesses are
continuing to expand in digital communications through innovative entities such as Denuo, Moxie
interactive or Pôle Nord.
Media agencies now represent 26% of Groupe revenue and is set for further strong growth. An
unprecedented amount of new business won at the beginning of 2007, including Wal-Mart, Fox
Entertainment and Wendy's, is further reinforcing Publicis Groupe's global lead in media buying and
consultancy.
- --> Healthcare communications reinforce digital offerings
Operating in a segment where demand for digital and interactive marketing services is particularly
strong, Publicis Healthcare Communications Group (PHCG) has consolidated its position as global
leader in healthcare communications. The already sizeable digital component in the PHCG offering
will be further reinforced by leveraging the capabilities of Digitas and its Medical Broadcasting
Company (MBC) agency. This will lead to new and innovative responses to the needs of large
pharmaceutical firms, which continue to drive demand. PHCG intends to further strengthen the
competitive advantages of its global leadership in the sector through pursuing targeted acquisitions.
• Growth in emerging markets continues
With growth rates double the Groupe average, our activities in emerging markets are a powerful
driver for Publicis Groupe. This presence is marked by:
- 15,000 staff members, representing nearly all Group competencies
- Strong market positions in China, Russia, Turkey, Mexico and Brazil.
Publicis Groupe aims to accelerate growth in these markets through the pursuit of targeted
acquisitions focusing on marketing services, healthcare communications and interactive
communications,
Publicis Groupe aims to generate 25% of its annual revenue in emerging markets by 2010.
III. Outlook for 2007
• A promising start for the year in net new business
Net new business booked in January alone totalled almost $2 billion, the strongest start of a year in
the Groupe’s history.
• Favorable growth prospects
As already announced on publication of 2006 revenue, the growth of business in Europe and the US
should be comparable to levels recorded in 2006, while growth in emerging markets is expected to
show further acceleration in 2007.
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• 2008 operating margin target confirmed
Following a renewed rise in 2006, Publicis Groupe confirms its target for operating margin rate at
16.7%, including allowance for the impact of the Digitas acquisition, in 2008.
* * |
* |
Publicis Groupe(Euronext Paris: FR0000130577 and NYSE: PUB) is the world’s fourth largest communications group, as well as world’s second
largest media counsel and buying group. Its activities span 104 countries on five continents.
The Groupe’s communication activities cover advertising, through three autonomous global advertising networks: Leo Burnett, Publicis, Saatchi &
Saatchi, as well as through its two multi-hub networks Fallon Worldwide and 49%-owned Bartle Bogle Hegarty; media consultancy and buying
through two worldwide networks ZenithOptimedia and Starcom MediaVest Group; and marketing services and specialized communications including
direct marketing, public relations, corporate and financial communications, event communications, multicultural and healthcare communications
with a worldwide leadership.
Web sites:www.publicisgroupe.comandwww.finance.publicisgroupe.com
Publicis Groupe Contacts:
Pierre Bénaich, Investor Relations: +33 1 44 43 65 00
Eve Magnant, Corporate Communications: +33 1 44 43 70 25
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Consolidated Financial Statements | ||||||
Year ended December 31, 2006 | ||||||
Consolidated Income Statement | ||||||
Millions of euros | 2006 | 2005 | 2004 | |||
Revenue | 4,386 | 4,127 | 3,832 | |||
Personnel expenses | (2,630) | (2,454) | (2,271) | |||
Other operating expenses | (936) | (908) | (862) | |||
Operating margin before depreciation and amortization | 820 | 765 | 699 | |||
Depreciation and amortization expense (excluding intangibles arising | ||||||
on acquisition) | (107) | (116) | (119) | |||
Operating margin | 713 | 649 | 580 | |||
Amortization of intangibles arising on acquisition | (22) | (23) | (29) | |||
Impairment | (31) | (33) | (215) | |||
Non-current income (expense) | 29 | 59 | (10) | |||
Operating income | 689 | 652 | 326 | |||
Cost of net financial debt | (36) | (78) | (108) | |||
Other financial income (expense) | (14) | (14) | (6) | |||
Income of consolidated companies before taxes | 639 | 560 | 212 | |||
Income taxes | (192) | (157) | (112) | |||
Net change in deferred taxes related to the OBSA/CLN transactions | ||||||
and deferred tax assets related to the conversion to IFRS | - | - | 198 | |||
Net income of consolidated companies | 447 | 403 | 298 | |||
Equity in net income of non-consolidated companies | 22 | 11 | 6 | |||
Net income | 469 | 414 | 304 | |||
Net income attributable to minority interests | 26 | 28 | 26 | |||
Net income attributable to equity holders of the parent | 443 | 386 | 278 | |||
Per share data(in euros) | ||||||
Number of shares | 209,611,690 | 210,415,990 | 210,535,541 | |||
Net earnings per share | 2.11 | 1.83 | 1.32 | |||
Number of shares –diluted | 240,064,428 | 233,816,994 | 233,984,337 | |||
Net earnings per share – diluted | 1.97 | 1.76 | 1.29 | |||
|
Consolidated Balance Sheet, Dec. 31 | ||||||
Millions of euros | 2006 | 2005(1) | 2004(1) | |||
Assets | ||||||
Goodwill, net, | 2,840 | 2,883 | 2,623 | |||
Intangible assets, net | 693 | 763 | 740 | |||
Property and equipment, net | 511 | 580 | 609 | |||
Deferred tax assets | 186 | 230 | 373 | |||
Investments accounted for by the equity method | 44 | 33 | 17 | |||
Other financial assets | 118 | 118 | 143 | |||
Non-current assets | 4,392 | 4,607 | 4,505 | |||
Inventory and costs billable to clients | 688 | 580 | 437 | |||
Accounts receivable | 4,214 | 4,145 | 3,368 | |||
Other receivables and other current assets | 413 | 446 | 364 | |||
Cash and cash equivalents | 1,920 | 1,980 | 1,186 | |||
Current assets | 7,235 | 7,151 | 5,355 | |||
Total assets | 11,627 | 11,758 | 9,860 | |||
Liabilities and shareholders’ equity | ||||||
Capital stock | 79 | 79 | 78 | |||
Additional paid-in capital and retained earnings | 2,001 | 1,977 | 1,543 | |||
Shareholders’ equity | 2,080 | 2,056 | 1,621 | |||
Minority interests | 27 | 20 | 31 | |||
Total equity | 2,107 | 2,076 | 1,652 | |||
Long-term financial debt (more than 1 year) | 1,911 | 1,913 | 1,492 | |||
Deferred tax liabilities | 216 | 220 | 365 | |||
Long-term provisions | 509 | 582 | 550 | |||
Non-current liabilities | 2,636 | 2,715 | 2,407 | |||
Accounts payable | 5,192 | 5,030 | 4,000 | |||
Short-term financial debt (less than 1 year) | 203 | 224 | 273 | |||
Income taxes payable | 149 | 263 | 206 | |||
Short-term provisions | 116 | 120 | 106 | |||
Other creditors and other current liabilities | 1,224 | 1,330 | 1,216 | |||
Current liabilities | 6,884 | 6,967 | 5,801 | |||
Total liabilities and shareholders’ equity | 11,627 | 11,758 | 9,860 | |||
(1) after changes in accounting policies in respect of :
- recognition of actuarial gain and losses on pension obligations
- classification of receivables and payables on media buying transactions
Page 8 of 14
Consolidated Cash Flow Statement | ||||||
Millions of euros | 2006 | 2005 | 2004 | |||
I- Cash flows from operating activities | ||||||
Net income | 469 | 414 | 304 | |||
Income taxes | 192 | 157 | (86) | |||
Cost of net financial debt | 36 | 78 | 108 | |||
Capital (gains) losses on disposal (before tax) | (27) | (58) | 10 | |||
Depreciation, amortization and impairment on property and | ||||||
equipment and intangible assets | 160 | 172 | 363 | |||
Non-cash expenses on stock options and similar items | 16 | 20 | 20 | |||
Other non-cash income and expenses | 11 | 11 | 13 | |||
Equity in net income of unconsolidated companies | (22) | (11) | (6) | |||
Dividends received from equity accounted investments | 19 | 9 | 7 | |||
Restructuring expenditure | (18) | (30) | (79) | |||
Taxes paid | (229) | (167) | (114) | |||
Interest paid | (85) | (93) | (73) | |||
Interest received | 74 | 44 | 46 | |||
Change in working capital requirements(1) | (3) | 74 | 264 | |||
Net cash provided by operating activities | 593 | 620 | 777 | |||
II- Cash flows from investing activities | ||||||
Purchases of property and equipment and intangible assets | (81) | (83) | (104) | |||
Proceeds from sale of property and equipment and intangible | ||||||
assets | 32 | 8 | 3 | |||
Proceeds from sale of investments and other financial assets, net | (3) | 7 | 468 | |||
Acquisitions of subsidiaries | (58) | (71) | (124) | |||
Disposals of subsidiaries | 11 | 98 | - | |||
Net cash flows provided by (used in) investing activities | (99) | (41) | 243 | |||
III- Cash flows from financing activities | ||||||
Dividends paid to parent company shareholders | (66) | (55) | (47) | |||
Dividends paid to minority shareholders of subsidiaries | (23) | (19) | (23) | |||
Cash received on new borrowings | 19 | 747 | 455 | |||
Reimbursement of borrowings | (52) | (460) | (1,307) | |||
Net (purchases)/sales of treasury stock and equity warrants | (264) | 7 | (9) | |||
Cash received on hedging transactions | 36 | - | - | |||
Net cash flows provided by (used in) financing activities | (350) | 220 | (931) | |||
IV- Impact of exchange rate fluctuations | (139) | 72 | (39) | |||
Net change in consolidated cash flows (I + II + III + IV) | 5 | 871 | 50 | |||
Cash and cash equivalents at January 1 | 1,980 | 1,186 | 1,415 | |||
Bank overdrafts at January 1 | (95) | (172) | (451) | |||
Net cash and cash equivalents at beginning of year | 1,885 | 1,014 | 964 | |||
Cash and cash equivalents at December 31 | 1,920 | 1, 980 | 1,186 | |||
Bank overdrafts at December 31 | (30) | (95) | (172) | |||
Net cash and cash equivalents at end of year | 1,890 | 1,885 | 1,014 | |||
Net change in cash and cash equivalents | 5 | 871 | 50 | |||
(1)Breakdown of change in working capital requirements | ||||||
Change in inventory and costs billable to clients | (152) | (97) | (47) | |||
Change in accounts receivable and other receivables | (338) | (391) | 76 | |||
Change in accounts payable, other creditors and provisions | 487 | 562 | 235 | |||
Change in working capital requirements | (3) | 74 | 264 | |||
Page 9 of 14 |
Statement of Changes in Consolidated Shareholders’ Equity
Gains and | ||||||||||||||||
Millions of euros | Additional | Reserves | losses | Shareholders’ Minority | Total equity | |||||||||||
Number of | Capital | paid-in | and retained recognized | equity | interests | |||||||||||
shares | stock | capital | earnings | through | ||||||||||||
equity | ||||||||||||||||
182,365,864 | January 1, 2004 after deduction of treasury stock | 78 | 2, 557 | (1, 291) | 154 | 1 ,498 | 28 | 1, 526 | ||||||||
Gains and losses recognized through equity | (124) | (124) | (1) | (125) | ||||||||||||
Net income for the year | 278 | 278 | 26 | 304 | ||||||||||||
Total recognized income and expenses for the year | 278 | (124) | 154 | 25 | 179 | |||||||||||
92,808 | Increase in capital stock of Publicis Groupe SA | |||||||||||||||
Dividends paid | (20) | (27) | (47) | (23) | (70) | |||||||||||
Share-based compensation | 20 | 20 | 20 | |||||||||||||
Effect of changes in scope of consolidation and of commitments | ||||||||||||||||
to purchase minority interests | 1 | 1 | ||||||||||||||
Reversal of Saatchi & Saatchi provisions | 2 | 2 | 2 | |||||||||||||
Reversal of Italian Bond provisions | 3 | 3 | 3 | |||||||||||||
(370,454) | Purchases/sales of treasury stock | (9) | (9) | (9) | ||||||||||||
182,088,218 | December 31, 2004 after deduction of treasury stock | 78 | 2, 537 | (1, 024) | 30 | 1 ,621 | 31 | 1, 652 | ||||||||
Gains and losses recognized through equity | 88 | 88 | 5 | 93 | ||||||||||||
Net income for the year | 386 | 386 | 28 | 414 | ||||||||||||
Total recognized income and expenses for the year | 386 | 88 | 474 | 33 | 507 | |||||||||||
1,637,949 | Increase in capital stock of Publicis Groupe SA | 1 | 47 | (48) | ||||||||||||
Dividends paid | (55) | (55) | (19) | (74) | ||||||||||||
Share-based compensation | 20 | 20 | 20 | |||||||||||||
Buyback of equity warrants (BSA) | (2) | (2) | (2) | |||||||||||||
Additional interest on Oranes | (2) | (2) | (2) | |||||||||||||
Partial early redemption of the 2018 Oceane (equity component) | (9) | (9) | (9) | |||||||||||||
Effect of changes in scope of consolidation and of commitments | ||||||||||||||||
to purchase minority interests | (25) | (25) | ||||||||||||||
343,079 | Purchases/sales of treasury stock | 9 | 9 | 9 | ||||||||||||
184,069,246 | December 31, 2005 after deduction of treasury stock | 79 | 2, 584 | (725) | 118 | 2, 056 | 20 | 2 ,076 | ||||||||
Gains and losses recognized through equity | (103) | (103) | (4) | (107) | ||||||||||||
Net income for the year | 443 | 443 | 26 | 469 | ||||||||||||
Total recognized income and expenses for the year | 443 | (103) | 340 | 22 | 362 | |||||||||||
1,600,219 | Increase in capital stock of Publicis Groupe SA | - | 47 | (47) | ||||||||||||
Dividends paid | (66) | (66) | (23) | (89) | ||||||||||||
Share-based compensation | 16 | 16 | 16 | |||||||||||||
Buyback of equity warrants (BSA) | (201) | (201) | (201) | |||||||||||||
Additional interest on Oranes | (1) | (1) | (1) | |||||||||||||
Effect of changes in scope of consolidation and of commitments | ||||||||||||||||
to purchase minority interests | 8 | 8 | ||||||||||||||
(2,065,587) | Purchases/sales of treasury stock | (64) | (64) | (64) | ||||||||||||
183,603,878 | December 31, 2006 after deduction of treasury stock | 79 | 2, 631 | (645) | 15 | 2, 080 | 27 | 2,107 |
Page 10 of 14
Definitions and Notes
Net Debt to Equity ratio: net debt at year end as a percentage of shareholder’s equity including minority interests.
Average net debt: yearly average of net debt of each month for the year.
Free cash flow: cash flow from operations after net capital expenditure, excluding acquisitions.
| 2005 | 2006 | ||
Cash Flow from operations | 593 | 620 | ||
Capital expenditures | (52) | (68) | ||
Free Cash Flow | 541 | 552 | ||
Deduction of change in WCR | 3 | (74) | ||
Free Cash Flow excluding change in WCR | _________ | _________ 478 |
Net New Business: this figure does not result from financial reporting, but is based on an estimate of annualized
advertising media spending on new business, net of losses, from new and existing clients.
2005 Revenue | 4,127 | |
Currency Impact | (8) | |
Acquisitions / disposals | 32 | |
2005 Revenue @ 2006 | ||
rates and structure (a) | 4,151 | |
2006 Revenue (b) | 4,386 | |
Organic Growth (b)/(a) | 5.6% | |
Operating margin rate: operating margin as a percentage of revenue.
Page 11 of 14
Headline Net Income
Page 12 of 14
Earnings Per Share and Diluted Earnings Per Share
2006 | 2005 | 2004 | ||||||||
Net income used for the calculation of | ||||||||||
earnings per share | ||||||||||
(Millions of euros) | ||||||||||
a | ||||||||||
Net income attributable to equity holders of the parent | 443 | 386 | 278 | |||||||
Impact of dilutive instruments: | ||||||||||
- Savings in financial expenses related to the conversion of | ||||||||||
debt instruments, net of tax(1) | 31 | 25 | 23 | |||||||
Net income attributable to equity holders of the parent - | b | |||||||||
diluted | 474 | 411 | 301 | |||||||
Number of shares used for the calculation of | ||||||||||
earnings per share | ||||||||||
Average number of shares in circulation | 183,576,207 | 182,818,378 | 182,410,541 | |||||||
Shares to be issued to redeem the Oranes | 26,035,483 | 27,597,612 | 28,125,000 | |||||||
c | ||||||||||
Average number of shares used for the calculation | 209,611,690 | 210,415,990 | 210,535,541 | |||||||
Impact of dilutive instruments:(2) | ||||||||||
- Effect of exercise of dilutive stock options | 1,736,783 | 228,591 | 276,383 | |||||||
- Effect of the exercise of the equity warrants | 59,208 | - | - | |||||||
- Shares resulting from the conversion of the convertible | ||||||||||
bonds(1) | 28,656,747 | 23,172,413 | 23,172,413 | |||||||
d | ||||||||||
Number of shares - diluted | 240,064,428 | 233,816,994 | 233,984,337 | |||||||
(en euros) | ||||||||||
Earnings per share | a/c | 2.11 | 1.83 | 1.32 | ||||||
Earnings per share – diluted | b/d | 1.97 | 1.76 | 1.29 | ||||||
(1) | In 2004 and 2005, only the 2008 Oceanes are taken into account for the calculation of diluted earnings per share; in 2006, both the 2008 | |||||||||
and 2018 Oceanes are taken into account in the calculation; | ||||||||||
(2) | Only the equity warrants and stock options with a dilutive effect, being those whose exercise price is greater than the average share price | |||||||||
for the year, are taken into consideration. |
Page 13 of 14
Headline earnings per share (basic and diluted)
2006 | 2005 | 2004 | ||||||
Net income used for the calculation of headline(1) | ||||||||
earnings per share | ||||||||
(Millions of euros) | ||||||||
Net income attributable to equity holders of the parent | 443 | 386 | 278 | |||||
Items excluded: | ||||||||
- Amortization of intangibles arising on acquisition, net of tax | 13 | 14 | 18 | |||||
- Impairment, net of tax | 23 | 24 | 164 | |||||
- Sale of the Saatchi & Saatchi building (Ile de la Jatte) | (27) | - | - | |||||
- Capital gains, net of tax, on the sale of JCDecaux Netherlands, | ||||||||
VKM, Sopact and 33 % of Metrobus. | - | (87) | - | |||||
- Capital loss on the early redemption of the Oceane 2018, net of | ||||||||
tax | - | 16 | - | |||||
- Capital gains on the OBSA/CLN transactions, net of tax | - | - | (134) | |||||
- Deferred tax assets related to conversion to IFRS | - | - | (57) | |||||
Adjusted net income attributable to equity holders of the parent | e | 452 | 353 | 269 | ||||
Impact of dilutive instruments: | ||||||||
- Savings in financial expenses related to the conversion of debt | ||||||||
instruments, net of tax | 31 | 25 | 23 | |||||
Headline net income attributable to equity holders of the parent – | ||||||||
diluted | f | 483 | 378 | 292 | ||||
Number of shares used for the calculation of | ||||||||
earnings per share | ||||||||
Average number of shares in circulation | 183,576,207 | 182,818,378 | 182,410,541 | |||||
Shares to be issued to redeem the Oranes | 26,035,483 | 27,597,612 | 28,125,000 | |||||
Average number of shares used for the calculation | c | 209,611,690 | 210,415,990 | 210,535,541 | ||||
| ||||||||
Impact of dilutive instruments: | ||||||||
- Effect of exercise of dilutive stock options | 1,736,783 | 228,591 | 276,383 | |||||
- Effect of the exercise of the equity warrants | 59 208 | - | - | |||||
- Shares resulting from the conversion of convertible bonds | 28,656,747 | 23,172,413 | 23,172, 413 | |||||
Number of shares - diluted | d | 240,064,428 | 233,816,994 | 233,984,337 | ||||
(In euros) | ||||||||
Headline earnings per share | e/c | 2.16 | 1.68 | 1.28 | ||||
Headline earnings per share - diluted(1) | f/d | 2.01 | 1.62 | 1.25 | ||||
(1) Earnings per share before amortization of intangibles arising on acquisition, impairment, capital gain (loss) on the disposals of the Ile | ||||||||
de la Jatte building, JCDecaux Netherlands and 33 % of Metrobus/ redemption of Oceane 2018/ the OBSA/CLN transactions (net of | ||||||||
tax) and the recognition of deferred tax assets related to conversion to IFRS. |
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