Publicis Group Sa S/Adr

Jean-Michel Bonamy is also here and will be available to take all of your questions offline after this call. I will start this presentation by sharing the main highlights of 2025 and our guidance for 2026. Loris will then provide the full details of our numbers before I come back with a strategic update. As usual, we will take your questions together after the presentation. But before we start, please take the time to read the disclaimer, which is an important legal matter.

Let's dive into the presentation with three key highlights.

First, we delivered a very strong Q4 at plus 5.9% organic growth, leading to plus 5.6% for 2025, generating record market share gains. These results set us apart. This is our six years in a row of industry outperformance, and we are further widening the gap with our peers. Second, we are increasing our operating margin, EPS, and free cash flow while accelerating our investments in AI power capabilities, talent, and new business. This demonstrates our unique ability to generate further operating leverage while investing in our future. Third, thanks to our high client retention rate and our new business track record, we expect to maintain our underlying business dynamic in 2026 with another solid full year guidance. Let's start with the first highlight. Organic growth was plus 5.9% in Q4, despite a tough comparable at plus 6.3% in 2024. This represents a better than anticipated Q4, which is traditionally an adjustment quarter and a sequential improvement resulting in a stronger H2 versus H1. This leads to plus 5.6% for the full year in 2025 and acceleration versus our five-year organic growth CAGR of 5%. Our performance is driven by three major elements. Our best-in-class client retention rate, our ability to grow with our existing clients, which contributed roughly to 300 basis points, demonstrating our ability to capture a disproportionate share of their demand for AI-powered products and services, and our record new business performance since 2024, creating a tailwind of 250 basis points. These very strong results were led by the continued strength of our AI-powered media and creative operation, totaling more than 85% of our revenue. Connecting media, representing 60% of our net revenue, delivered high single-digit organic growth, driven by market share gains, increased demand for AI-powered products and services, and new addressable markets. Intelligent Creativity, representing circa 25% of our net revenue, had a very solid year at mid-single-digit organic growth, fueled by production, new business win, scope expansions, and fewer cuts than anticipated in classic advertising in Q4. Publicis Sapiens, representing less than 15% of our net revenue, was positive in Q4. As expected, organic growth was almost flat for the full year. Like all leading IT consulting firms, we continue to see client cautiousness toward capex spend due to a continued challenging microeconomic environment. Despite ongoing micro conditions, all our regions perform strongly, demonstrating the unique global consistency of our model and its superior resilience to local challenges. The US, our largest market, representing 57% of our net revenue in Q4, posted solid organic growth of plus 4.3% for the quarter. This led to a growth of plus 5.2% for the year, cementing our number one position in this market. Europe delivered plus 6.3% in Q4, accelerating versus Q3, driven by double-digit growth for connected media and leading to plus 4.2% full-year organic growth. Asia-Pac delivered plus 6.2% organic growth in Q4, fueled by continued new business wins, leading to plus 5.8% for the full year. China had actually a strong overall year at plus 6%. Second highlight, in 2025, we progressed on all financial KPIs while materially accelerating our investments, demonstrating strong operating leverage. First, we improved our industry-high operating margin to 18.2%. In detail, we actually unlock close to 50 basis points in operating leverage, thanks to our platform organization, a continued focus on automation, offshoring, and overall cost disciplines. These 50 basis points can be broken down to two. 30 basis points in incremental investment versus 2024, including talent upgrade, our AI plan, and new business, which together amount for 230 basis points in 2025, and 20 basis points in operating margin improvement versus 2024, enabling us to reach 18.2%. Second, headline EPS came at €7.48, up 6.6% versus 2024 at constant currency, ahead of organic growth of plus 5.6%. Third, and for the first time, our free cash flow exceeded €2 billion, representing a year-on-year growth of 10.6%, well above 2024 record level. When it comes to M&A, we maintain the high pace of 2024 with circa 1 billion euros invested to strengthen our capabilities in identity resolution with Lotame, pharma with P-Value, influencer marketing with Captivate, BR Media and Epmil, and sport marketing with Adopt and Bespoke. Finally, we are proposing a dividend of €3.75 per share, up 4.2% versus 2024, representing the highest payout ratio of the industry at 50.1% and an 88% increase over the last five years. Now, given the recent depreciation of the US dollar, we thought it would be interesting to show you how we perform in this currency. Net revenue is at $16.4 billion, increasing by 8.8% versus 2024. Operating margin is up to $3 billion, a 9.8% increase, and EPS rose by 7%. Free cash flow is at $2.3 billion, up 15.4% versus last year. And the dividend we are proposing to the AGM will be up 8.8% in dollars. Last highlights are guidance for 2026. Like in 2024 and in 2025, we are starting 2026 with the same guidance of 4 to 5%. This sustained performance, year after year, demonstrates the underlying strengths of our model in good and bad times. It is the ongoing result of our new business tailwind, our client retention rate, and our continued investment in our model to benefit from client arbitrage, particularly in AI-powered products and services. This performance assumes connected media growing high single digits, intelligent creativity up low to mid-single digits, and publicity sapient delivering a slight increase. On operating margin, we will continue to slightly improve our already industry-leading margin in 2026 while maintaining high level of investments consistent with 2025. On free cash flow, we are targeting circa 2.1 billion euros. This cash generation will allow us to maintain a consistent capital allocation policy, including the payout of our cash dividend, buybacks to keep the share count stable, as well as Bolton acquisition for roughly 900 million euros to continue adding the differentiating capabilities that will help our client growth. I will now leave the floor to Loris, who will take you through the detail of our numbers. I will then come back to provide a strategic update for 2026 and beyond.