© 2019 Ipsos. Résultats Annuels 20181
2018, year of
transformation
FULL-YEAR 2018 RESULTS
© 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.
28 February 2019
© 2019 Ipsos. Résultats Annuels 20182
Agenda
1
A market in transformation
4
Outlook The Total Understanding
programme: Objective growth
2
2018 Results
3
© 2019 Ipsos. Résultats Annuels 20183
CHANGE IN CONSUMERS“The basic motivations of consumers have not changed that much... The big change is that we have gone from a world that generally suffered from food shortages to a world of surplus. The main problem today is not feeding yourself but feeding yourself well.”
CHANGE IN THE PRODUCT OFFERING “For more than a century, we were able to grow by offering a relatively limited range of products. Today, it's essential that we offer broader ranges both in terms of price ladder and product.“
CHANGE IN METHODS“We have to be organised to make the best use of data, create new marketing platforms, adapt our sales methods and still keep in touch with the consumer.”
THE POWER OF BEING LOCAL “You have to be willing to delegate more power and responsibility to the local level.”“...Today it's the people on the ground who can
understand and adapt to consumers, who are different in every culture.“
AGILITY“You have to multiply message forms, you have to go faster, you have to be willing to test and try everything, while working to get better as you go. We have to go into 'agility' mode.“
The market is transforming: Words from our clientsJames Quincey, CEO Coca-Cola
Source: Les Echos, 15 February 2019 – « Coca-Cola doit passer en mode agile »
© 2019 Ipsos. Résultats Annuels 20184
A volatile market increases the need for reliable data
• Today, it is increasingly important to anticipate and act quickly
• This increases the value of sound information
© 2019 Ipsos. Résultats Annuels 20185
Data taken from market research and surveys have certain characteristics
Security
Simplicity
Speed
Substance
4 S's
By using statistical science and sampling, research can inexpensively produce data that provide:
Accuracy
Representativeness
Thoroughness
Freshness
Predictability
Neutrality
© 2019 Ipsos. Résultats Annuels 20186
The explosion in Big Data highlights the relevance of market researchSuccess depends on the usefulness of information and one’s ability to transform the data into action
Data means any form of fact or statistic
“The sun rises at 5:38.”
Knowledge is a piece of information processed to make it
actionable
“If you are lost, look towards the rising sun to find your way again.”
Information is a form of data that can be used because it
has been given meaning
“The sun rises in the east at 5:38 and sets in the west.”
© 2019 Ipsos. Résultats Annuels 20187
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.
© 2019 Ipsos. Résultats Annuels 20188
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
© 2019 Ipsos. Résultats Annuels 20189
From data generation to full control of information
DEFINITION OF NEEDS
DATA PRODUCTION
DATA INTEGRATION
• Understanding of client
issues
• Study design
• Primary data from
surveys and panels
• Third-party data
(behavioural, social,
customer, other
available data)
• Analytical models
• Artificial intelligence
DATA ANALYSISINFORMATION
DELIVERYADVISORY
• Understanding of the
societal context
• Reliability and
relevance of data
• Sector / category /
segment expertise
• Visualisation
platforms
• Storytelling
• Support clients in
taking action
TECHNOLOGY AND AUTOMATION
TEAM EXPERTISE
© 2019 Ipsos. Résultats Annuels 201810
The Total
Understanding
programme:
Objective Growth
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and may not be disclosed or reproduced without the prior written consent of Ipsos.
28 February 2019
© 2019 Ipsos. Résultats Annuels 201811
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
© 2019 Ipsos. Résultats Annuels 201812
75 Services operated by 17 Service Lines
(1) Qualitative research, excl. pharma(2) Excl. public sector(3) Includes quantitative & qualitative research
Audience Measurement
Brand Health Tracking
Clinics and Mobility Labs
Creative Excellence
Innovation
Ipsos UU (Qualitative)1
Ipsos MMA
Market Strategy & Understanding
Observer2
Social Intelligence Analytics
CONSUMERS
Customer Experience
Retail & Consumer Intelligence
Mystery Shopping
Quality Measurement
CLIENTS AND EMPLOYEES
DOCTORS AND PATIENTS
Healthcare3
Public Affairs
Corporate Reputation
CITIZENS
61%
11%
12%
16%
Contribution of audience segment in 2018 Revenue
SERVICE LINES
© 2019 Ipsos. Résultats Annuels 201813
HAVE THE DATA IN REAL TIMEMobile, Services Overnight, Enterprise Feedback Management (EFM).
MEASURE DIFFERENTLYWeb listening, Communities, Behavioural Economics, Ethnography, Neurosciences, Consumer & Retail Audit, Mediacell
11%
13%14%
2016 2017 2018
Pursuing innovation: New Services
+27% +13%+ 17%
Continued momentum of the New Services in 2018
Each Service Line has a programme of innovation and incorporation of New Services
SERVICE LINES
ANALYSE BIG DATAData analytics / Data Science, Ipsos Science Center, Path to Purchase
OFFER EXPERT ADVISORY SERVICESMarket Entry Research, Workshops, Advisory services, Insight Cloud
OrganicGrowth
Weight
of New
Services in
revenue
Contribution of New Services
© 2019 Ipsos. Résultats Annuels 201814
Analyse big data: Radio France and France Télévisions
CITIZEN INPUT ABOUT PUBLIC RADIO AND TV
• 130,000 participants expressed what they want for the future of public radio & TV
• Open expression via a web platform: +30 open- and close-ended questions
• 400,000 transcripts, 20,000 photos, avg. 22 mins. spent per respondent
• Artificial Intelligence: creation of semantic analysis algorithms
• Human intelligence: reading of the fraction of transcripts contributing the most to the nature of the topics
SERVICE LINES
© 2019 Ipsos. Résultats Annuels 201815
Sector changes in 2018
Re-balancing the client base
-1,4%
5,6%
3,5%
0,1%
8,0%
-9,1%
Other sectors
Automotive
Public sector
Financial services
Pharma
TMT
CPG
Organic growth by sector% of 2018
Revenue
26%
18%
13%
9%
7%
7%
20%
% of 2017
Revenue
29%
17%
13%
8%
7%
7%
19%
reminder
CLIENT ORGANISATION
© 2019 Ipsos. Résultats Annuels 201816
COMPLEMENTARY KNOW-HOW
• Services involved, in particular:Brand Health Tracking, Ipsos UU, Customer Experience, Corporate Reputation, Social Intelligence Analytics, User Experience, Media Development (other Specialist Services)
• Ipsos provides its expertise in analysing consumer behaviour together with data collected in real time by those clients.
Portfolio of the 7 main TMT sector clients
2018 weight: 6.0% (4.5% in 2017)
REVENUE GROWTHEuro millions at current exchange rates
5878
104
2016 2017 2018
KEY FIGURES
Special attention to a dynamic sector: GAFA, platforms, mobile
+33.4%
Organic
CLIENT ORGANISATION
© 2019 Ipsos. Résultats Annuels 201817
Local client organisation: closer to clients
• Be the client’s voice in Ipsos and the voice of Ipsos with the client
• Presence in all key countries (45 countries, 214 professionals)
• Local experts focused on the business challenges of key clients
• Increase market share • Through more tailored services• Through a multiplication of touchpoints within the client
CLIENT ORGANISATION
Client strategy
Growth
Collaboration
Client relationship
© 2019 Ipsos. Résultats Annuels 201818
Developing client relationships: Škoda AUTO
A CUSTOMER EXPERIENCE PROGRAMME CONDUCTED IN 30 COUNTRIES• Comprehensive client assistance
− Production of new data, analyses of existing data
− Creation of a data reporting portal − Development of a new technology for
measuring the quality of the customer experience
− Standardisation of methods
• Services proposed − Mystery Shopping− Enterprise Feedback Management− Advisory− Workshops
Ipsos client since 2012
Majority of revenue generated in Czech
Republic
REVENUE GROWTHEuro millions at current exchange rates
1,72,2
2,9
2016 2017 2018
KEY FIGURES
SKODA
+71%
in 2 years
CLIENT ORGANISATION
© 2019 Ipsos. Résultats Annuels 201819
Targeting growth markets: India
PUBLIC AFFAIRS IN INDIA:
• Large-scale polling to determine the configuration of
public opinion in India before the 2019 elections:− prominent nationwide coverage of the study;
− 34,000 individuals polled in
320 parliamentary districts
• Study of the attractiveness of Indian cities for the World
Bank:− quality of life and economic attraction indices;
− 100+ Indian municipalities covered.
> 700 employees
Mumbai, Delhi, Bangalore
2018 weight: 1.2%
2018 Revenue: €21 million
Revenue growth:in millions of INR
1 374
1 721
2017 2018
Key figures - India
+24.4%
OrganicEXAMPLE OF A MAJOR FMCG SECTOR PLAYER:
• Setup of a global centre for product testing.
STRONG LOCAL PRESENCE
© 2019 Ipsos. Résultats Annuels 201820
Reinforced cross-company capabilities
Apply the sciences for a better understanding of individuals
and groups and measure their behaviour
→ Science Team A
Cutting-edge technologies to
process all data formats
→ Tech Team A
43 years,
in 89 countries,
200 cities,
5,000 clients,
8,000 researchers
Expert teams
→ Ipsos Knowledge Centre
Science
Teams
Know-howTechnology
REINFORCED CROSS-COMPANY CAPABILITIES
© 2019 Ipsos. Résultats Annuels 201821
• 97% of staff agreed to being
transferred within Ipsos
• Integration of staff completed
• Client relationships
consolidated
• Master Service Agreements
transferred at 31 March 2019
(90%)
Acquisition of GfK Research
• Additional leadership in these
segments:
- Public Affairs;
- Healthcare;
- Innovation;
- CX and Mystery Shopping.
• Low integration costs
• Attractive acquisition multiple:
0.5x sales (price: €105m)
For operational reasons, 2019 will not be a full year
OPPORTUNISTIC ACQUISITION COMPLETED SINCE OCTOBER 2018 2019
• Potential in key countries
• Momentum for NORM (a
virtual reality platform)
• Optimisation of staff and
operational capabilities
30180 200
2018a 2019e 2020e
Revenue impact (MEUR)
ACQUISITIONS
© 2019 Ipsos. Résultats Annuels 201822
• Integration of personnel:
‐ Product Teams concentrated
on the platform and
technology
‐ Reporting Teams within Ipsos
• Integration of capabilities:
‐ Shared development plan
between the Data Science
teams
Acquisition of Synthesio
• Acquisition of a recognised tech
leader (per Forrester & Gartner1)
in monitoring and analysing
conversations from social
networks
• Broadened Ipsos service offering,
new services for Synthesio clients
• Double-digit 2018 growth
• Strengthens transition from single
channel to a multi-channel
strategy
• Price: $50m
STRATEGIC ACQUISTION MADE IN 2018 2019
• Maintain platform leadership
• Investment in text analytics
€30m (+44%2)incl. c.€20m for Synthesio
Social Intelligence Analytics 2019E
Revenue:
(1) Forrester Wave report – Social Listening Platforms, Q3 2018, Gartner report - Market Guides for Social Analytics Applications since 2013(2) as compared to pro forma 2018 revenue with Synthesio 2018 revenue on a full-year basis
ACQUISITIONS
© 2019 Ipsos. Résultats Annuels 201823
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
© 2019 Ipsos. Résultats Annuels 201824
Annual
Results
2018
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and may not be disclosed or reproduced without the prior written consent of Ipsos.
28 February 2019
© 2019 Ipsos. Résultats Annuels 201825
Key figures FY 2018
Revenue Organic growthCurrency effects
Operating margin
Free Cash Flow
€1,749.5 million
+ 0.7% (4.1%) 9.9% €108million
© 2019 Ipsos. Résultats Annuels 201826
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
© 2019 Ipsos. Résultats Annuels 201827
Including: Share Organic growth
Developed countries 68% -0.8%
Emerging countries 32% 3.9%
2018 Revenue(in millions of euros)
ShareTotal growth 2018 – 2017
Organic growth
EMEA 761.5 44% -0.8% 0%
Americas 653.4 37% -5.1% -0.9%
Asia-Pacific 334.6 19% 3.2% 6%
Revenue 1,749.5 100% -1.7% 0.7%
Share of revenue by region
© 2019 Ipsos. Résultats Annuels 201828
2018 Revenue(in millions of euros)
ShareTotal growth 2018 – 2017
Organic growth
Consumers1 1,059.7 61% -3.9% -0.3%
Clients and employees2 287.6 16% -1% 1.3%
Citizens3 205.9 12% 8.8% 7.5%
Doctors and patients4 196.3 11% -0.8% -0.9%
Revenue 1749.5 100% -1.7% 0.7%
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
© 2019 Ipsos. Résultats Annuels 201829
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
© 2019 Ipsos. Résultats Annuels 201830
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.
© 2019 Ipsos. Résultats Annuels 201831
EUR: 64%
USD 36%
DEBT BREAKDOWN
Eurozone 17%
UK: 12%
Dollar Zone: 28%
Other regions: 43%
BREAKDOWN OF IPSOS
BUSINESS ACTIVITIES
Breakdown by currency
© 2019 Ipsos. Résultats Annuels 201832
SPLIT BY MATURITY
746
5174 167
2675
0
300
31/12/2018 2019 2020 2021 2022 2023 2024 2025
Gross Debt
(€M)
Debt by maturity
© 2019 Ipsos. Résultats Annuels 201833
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%)
© 2019 Ipsos. Résultats Annuels 201834
Outlook
© 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.
28 February 2019
© 2019 Ipsos. Résultats Annuels 201835
2%-4%
10%
Organic growth
Average EPS growth1
Dividend payout ratio
Annual acquisitions
2.5x –
3.0xOptimized 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%
© 2019 Ipsos. Résultats Annuels 201836
Q&A