For the First Time Since 2001, Annual Revenue Was Up in 2006 (+0.6%
Organic Growth and +0.8% Actual Growth) SURESNES, France, April 5
/PRNewswire-FirstCall/ -- This result breaks down as follows: -
Operating income of 121 million EUR in 2006, versus 128 million EUR
in 2005 - Net financial expense reduced by 5 million EUR Taking
into account an Income tax expense up from 14 to 25 million EUR,
the net income, group share was 46 million EUR in 2006, after 59
million EUR in 2005. - Sharp rise in Net New Business[1] in 2006,
up to 1.931 billion EUR from 1.055 billion EUR in 2005. Havas
ranked No. 1 by Lehman Brothers for 2006 - Net debt stood at 382
million EUR at December 31, 2006, down from 417 million EUR at
year-end 2005 and from 648 million EUR at June 30, 2006 - 2006
dividend unchanged Main features of 2006: - For the first time in
five years, Havas experienced actual growth in its annual revenue
in 2006. - Excellent performance in net new business combined with
acclaimed creativity: - Euro RSCG Worldwide was elected "Global
Network of the Year" by Campaign, and "Global Agency of the Year"
by Advertising Age - BETC Euro RSCG elected best agency of the year
by CB News. - MPG France ranked top media agency in the French
market by the Recma report - Optimised international organisation:
a solid worldwide Integrated Communications network with EURO RSCG
and a global media expertise network in Havas Media. In 2006, Havas
brought all the MPG media agencies together under "Havas Media"
brand. Arnold focused on its North American clients and market (USA
and Canada). - Proposed launch of a new communications agency in
France around Scher Lafarge and Devarrieux Villaret. - Delisting
from the NASDAQ and deregistration from the SEC. The NASDAQ
delisting came into effect on July 7, 2006. Furthermore, on October
10, 2006, Havas filed notice with the SEC to deregister its shares
with immediate effect under the 1934 Securities and Exchange Act. -
Great success of the Redeemable equity warrant issue: - In December
2006, the banks (Banque Federative du Credit Mutuel, Natixis, and
HSBC France) subscribed a 270 million EUR bond issue with
redeemable equity warrants attached. - In early 2007, the
redeemable equity warrants were then oversubscribed 1.35 times by
the Havas group's managers, i.e. some 42 million redeemable equity
warrants, which will only be listed in late 2010, for a total of
nearly 15 million EUR. 1. Increase in annual revenue and 2006
results performance marked by recruitment in H1 and a more positive
performance in H2 Under the chairmanship of Vincent Bollore, the
Havas Board of Directors approved the 2006 accounts at its meeting
of April 5. These accounts are in compliance with IFRS, the
standards that have been in force as of December 31, 2006. - 2006
revenue totalled 1.472 billion EUR, up 0.8% from 1.461 billion EUR
for the previous period. At constant exchange rates, revenue growth
was 1% for the year. On a like-for-like basis, organic growth was
0.6% in 2006. Foreign exchange rates in the fourth quarter of the
year, especially the weakening of the US dollar, had a 13 million
EUR negative impact on the group (at September 30, 2006 the
currency impact was still positive). - Income from Operations
totalled 140 million EUR in 2006, compared with 152 million EUR in
2005, i.e. a 2006 margin of 9.5% versus 10.4% in 2005 as a result
of the talent recruitment campaign and reinforcing of New Business
staff. - Operating Income stood at 121 million EUR in 2006, but was
adversely affected an 11 million EUR goodwill impairment and 8
million EUR in special restructuring costs. - The Net financial
expense of 38 million EUR was nonetheless a 5 million EUR
improvement on 2005. - The tax burden rose from 14 to 25 million
EUR, thus reducing Net Income (group share) from 59 million EUR in
2005 to 46 million EUR in 2006. - Earnings Per Share, whether basic
or diluted, were 0.11 EUR in 2006 (0.14 EUR in 2005). 2. Improved
Net debt Net debt stood at 382 million EUR at December 31, 2006,
down from 417 million EUR at year-end 2005 and from 648 million EUR
at June 30, 2006. It should be noted that the average net debt[2]
for the year was 522 million EUR in 2006, compared with 543 million
EUR in 2005. The debt repayment schedule was considerably
lengthened by the bond issue with redeemable equity warrants
attached, the total amount of this 270 million EUR issue being
repayable in thirds maturing at the end of 2011, 2012 and 2013. 3.
2006 dividend unchanged The Board of Directors will propose that
the Annual Shareholders' Meeting, on June 11, approve a dividend of
0.03 EUR per share, i.e. exactly the same amount as for 2005. 4.
Sharp rise in Net New Business1 in 2006 Net New Business reached
1.931 billion EUR in 2006. Havas was ranked No. 1 in New Business
by Lehman Brothers for the full year. In 2006, Net New Business was
30% higher than the average over the last four years. The main
accounts won in 2006 were: Euro RSCG Worldwide : Sanofi-Aventis
(global), Reckitt Benckiser (global), Boehringer Ingelheim
(global), ExxonMobil (USA), Veolia (France), LG Electronics (11
countries of Latin America), EDF, RATP et Natixis (France), Orange
(B2B) worldwide, Sixt (pan-European), Barclays (Great-Britain) -
Disneyland Resort Paris (France, Spain, Great Britain, Belgium,
Germany, Italy, the Netherlands and Scandinavia) ; - Vinci
(pan-European) - Breathe Right(R) (Canada, Japan, Mexico, Great
Britain, France, Spain, Italy, Germany and Poland) ; - Pierre &
Vacances, Groupe Caisse d'Epargne, NYSE (France) ; - News Magazine,
Weight Watchers Meetings et Staples UK Retail (Great-Britain) ; -
Culligan Water, Assurant Health, Barilla, Cabot Wood Stain, Bombay,
Boniva de GlaxoSmithKline & Roche et Circuit City (USA) -
Marriott Hotels, Bausch & Lomb, Concern Worldwide, Maison de
France et Practical Action (Great-Britain) ; - Iveco et Seb (Spain)
; - Hotel Sheraton (Mexico) Havas Media : Danone (USA and Canada),
GoodYear Dunlop (France, Spain, Italy, Portugal, Greece, Belgium,
the Netherlands and Luxembourg), Peugeot-Citroen (France), Agencia
Tributaria (Spain), ExxonMobil (USA), Almacenes Paris (Chile),
Telefonica (Brazil), LG Electronics (Latin America) - Veolia
Environnement (pan-European) ; - Eidos (Great Britain, France and
Germany) ; - De Agostini, Hotel.com et Garlik (Great Britain) ; -
Forte Pharma, Schmidt/Cuisinella, Cdiscount et M6 chaines
thematiques (France) ; - Osborne, Fnac, Viajar.com, Fagor, Mango,
Correos y Telegrafos, Ministerio de Sanidad Y Consumo, Guerlain,
Skoda, BNP Paribas et Orange (Spain) ; - La Redoute, Bwin, Correios
de Portugal et Bwin (Portugal) ; - Dialog (Poland) ; - Celebrity
Cruises (USA) ; - Casa Pedro Domecq (Mexico) ; - Transantiago
(Chile) Arnold : Progressive Direct, Lee Jeans, Pearle Vision, Trex
Company, Life Time Fitness, Select Comfort, USA Today (USA) 5.
Creativity as strong as ever in 2006 At the 53rd Cannes
International Advertising Festival, the Havas Group carried off 18
Lions including three Gold Lions: one in the film category for "La
Marche de l'Empereur" (The March of the Emperor) produced by BETC
Euro RSCG for Canal+, another in the cyber category awarded to Euro
RSCG 4D Sao Paulo for the "Oops" campaign it produced for Reckitt
Benckiser, and a third to Havas Sports in the media category for
the design and organisation of a one-day event on the Champs
Elysees entitled "Embracing the Olympic Spirit" in support of the
Paris 2012 Olympic bid. Other award-winning agencies included
Arnold Boston, McKinney & Silver, EHS Brann, Euro RSGG 4D
Amsterdam and Euro RSCG Amsterdam, Euro RSCG Buenos Aires, Euro
RSCG Vale, and Euro RSCG 4D in France. Moreover, the Havas Group
was awarded the Young Creatives Prize, thus emphasising the
permanent influx of new talent at the group. According to the Gunn
Report, the official international ranking of creativity, two
campaigns produced by Euro RSCG Flagship for 11 News Channel 1 and
BETC Euro RSCG for Canal+ are in the Top 10 campaigns in terms of
awards received in 2006. The Arnold Boston agency came No. 3 in the
USA and is one of the very select club of agencies to have figured
in the Gunn Report every year since it was created. The CyberWon
report (interactive advertising's equivalent of the Gunn Report)
was published in February 2007. Its worldwide Top 10 digital
campaigns in terms of awards received includes one produced by
Arnold Boston and two more by Euro RSCG 4D Amsterdam. In addition,
the Arnold Boston and McKinney agencies are respectively rated 4th
and 7th in the Top 10 digital agencies in the USA. Finally, Euro
RSCG 4D Amsterdam is No. 10 in the Top 50 digital agencies
worldwide on the basis of awards received. For the very first time,
a French interactive production company (Streampower / MPG)
received the prestigious Emmy award for "Best interactive TV
program of the year" for its co-production of "CULT" alongside
PPROD for TV channel France 5. About Havas Havas (Euronext Paris:
HAV.PA) is a global advertising and communications services group.
Headquartered in Paris, Havas operates through its two worldwide
networks, Euro RSCG Worldwide headquartered in New York and Havas
Media in Barcelona, and through Arnold Worldwide Partners. A
multicultural and decentralized Group, Havas is present in more
than 75 countries through its networks of agencies and contractual
affiliations. The Group offers a broad range of communications
services, including traditional 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 14,400 people. Further information about Havas is
available on the company's website: http://www.havas.com/
Forward-Looking Information This document contains certain
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions, concerning matters that are not historical facts.
These forward-looking statements reflect Havas' current views about
future events and are subject to risks, uncertainties, assumptions
and changes in circumstances that may cause Havas' actual results
to differ significantly from those expressed in any forward-looking
statement. Certain factors that could cause actual results to
differ materially from expected results include changes in global
economic, business, competitive market and regulatory factors. For
more information regarding risk factors relevant to Havas, please
see Havas' filings with the U.S. Securities and Exchange
Commission. 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 translate 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. Contacts : Communications : Anne Marsan Tel:
+33-(0)1-58-47-90-33 Solenne Anthonioz Tel: +33-(0)1-58-47-90-27
Investor Relations: Herve Philippe Directeur Financier du Groupe
Havas Tel: +33-(0)1-58-47-91-23 2 allee de Longchamp 92281 Suresnes
Cedex, France Tel +33 (0) 1 58 47 90 00 Fax +33 (0) 1 58 47 99 99
http://www.havas.com/ SA au capital de 171 179 760,80 euros - 335
480 265 RCS Nanterre - APE 744 B [1] Net account gains expressed in
estimated annual billings. The complete definition can be found at
the end of this release. [2] Average net debt (quarterly and
annual) is calculated, in the case of the four main countries
(France, USA, UK and Spain), as the difference between the gross
structured debt (convertible bonds, facilities drawn down, etc.)
and cash in the bank measured daily. For all other countries, the
average net debt is the net debt carried in the accounts at the end
of each quarter. DATASOURCE: Havas CONTACT: Contacts :
Communications : Anne Marsan, Tel: +33-(0)1-58-47-90-33, ; Solenne
Anthonioz, Tel: +33-(0)1-58-47-90-27, ; Investor Relations: Herve
Philippe, Directeur Financier du Groupe Havas, Tel:
+33-(0)1-58-47-91-23,
Copyright