- Operating margin 11.0% compared to 8.2% in 2006 (+2.8 points)
- Net income, Group share: EUR83 million compared to EUR46 million in
- Improvement in financial structure
- Reduction in net debt at December 31, 2007 of over 40%, to EUR226
million compared to EUR382 million at December 31, 2006
- Marked increase in operating cash flow
- Dividend proposed of EUR 4 cents: +33% compared to 2006
"The results for 2007 are up sharply on 2006 and ahead of target. In
2008, we will continue our efforts to win new business, optimize resources
and control costs. We are especially satisfied with our strong cash flow
generation and debt reduction, enabling Havas to regain real financial
autonomy." - Fernando Rodes Vila, Chief Executive Officer of the Havas
1. 2007 results
The Board of Directors, meeting on March 10 under the chairmanship of
Vincent Bollore, approved the annual accounts for the 2007 financial year.
- Group revenue of EUR1,532 million reported for 2007 showed record
annual organic growth of +7.1% - the highest rate since 2000 - and an
increase of +4.1% at current exchange rates over 2006. Stronger organic
growth in all regions and across all Group businesses was driven by the
positive contribution from major international clients and new account wins
in 2006 and 2007.
- The Group's organic growth in 2007 increased over each quarter:
Quarter 1 3.2%
Quarter 2 5.4%
Quarter 3 9.3%
Quarter 4 9.8%
Year 2007 7.1%
- At 9.8%, organic growth in Q4 2007 was the highest quarterly growth
rate recorded since 2000.
- Income from operations totaled EUR169 million, an increase of +21%
compared to 2006, with margin on income from operations gaining +2.6 points
from 9.5% in 2006 to 11.1%, thanks to rationalization and cost control.
- Operating income rose to EUR168 million, a marked increase of +39%
over 2006. An operating margin of 11.0% in 2007 compared to 8.2% in 2006
represents an increase of +2.8 points.
- Net income, Group share, was EUR83 million in 2007, compared to EUR46
million in 2006, an increase of +81%.
- Earnings Per Share were EUR 19 cents in 2007 compared to EUR 11 cents
in 2006, an increase of +73%.
2. Financial position at December 31, 2007
- The Group's financial structure was considerably reinforced in 2007:
- Net debt stood at EUR226 million at December 31, a reduction of 41%
by comparison with December 31, 2006. Average net debt for the year was
also down sharply (-25%) at EUR389 million.
- The debt maturity has been now extended from two and a half years in
2006 to over four years, for a level of net debt representing barely one
year of EBITDA at December 31, 2007.
- The bond issue with redeemable equity warrants attached (French
OBSAAR) of January 2008 has proved a remarkable success. Together with the
issue of December 2006, it reflects the level of confidence in the Group's
future development among senior executives, who have invested almost EUR20
million from their personal funds.
- Cash flow generation made significant progress. Operating cash flow
increased from EUR86 million in 2006 to EUR264 million in 2007.
3. Decisions of the Board of Directors
The Board of Directors decided to appoint Messrs. Antoine BERNHEIM and
Antoine VEIL as directors to replace outgoing directors Mr. Thierry MARRAUD
and BOLLORE Medias Investissements, represented by Mr. Marc BEBON.
These appointments will be subject to ratification by the next Annual
Shareholders' Meeting on May 29, 2008.
The Board of Directors further decided to propose to the next Annual
- A dividend of EUR 4 cents per share, an increase of 33% on the
dividend paid in 2006.
- The appointment of Messrs. Yves CANNAC and Pierre GODE as new
independent directors. An Audit Committee and a Compensation Committee are
to be created as indicated at the Annual Shareholders' Meeting of June 11,
- The appointment of Longchamp Participations, represented by Mr. Jean
de YTURBE, and Financiere de Longchamp, represented by Mr. Herve PHILIPPE,
replacing EURO RSCG and HAVAS PARTICIPATIONS, represented by the same
APPENDIX 1: Financial Information
The table with the financial information is available on the Havas
APPENDIX 2: Biographies
Mr. Antoine Bernheim
Antoine Bernheim holds degrees in science and law, and higher degrees
in private and public law. After serving as a partner in bankers Lazard
Freres from 1967 to 2002 and as Chairman and Chief Executive of insurance
company La France, in 1973 he was appointed a director of Italian insurance
company Assicurazioni Generali S.p.A. and of its main subsidiaries, before
becoming Vice President and then operating Chairman.
He is currently a member of the Supervisory Board of Eurazeo and of the
well-known Italian investment bank Mediobanca, and as Deputy Chairman of
the Supervisory Board of Intesa Sanpaolo S.p.A. He is also Executive
Chairman of Assicurazioni Generali S.p.A., a director of its main
subsidiaries and Deputy Chairman of Alleanza Assicurazioni S.p.A. He is
also involved in industry as Vice President of L.V.M.H., Vice President of
Bollore and a director of Ciments Francais.
Mr. Antoine Bernheim holds the following honors and decorations:
Grand'Croix de la Legion d'Honneur and Commandeur des Arts et Lettres in
France, Grand Cross of the Order of Merit of the Republic in Italy and
Commander of the National Order of the Southern Cross in Brazil.
Mr. Antoine Veil
Antoine Veil is a graduate of the Institut d'Etudes Politiques de Paris
and of the Ecole Nationale d'Administration. He is an Inspector of
Finances, 1st. Class (retired).
After serving on the staff of various ministerial offices until 1963,
he became Delegate General of the French shipowners' federation, the Comite
Central des Armateurs de France (CCAF), and Chief Executive of Groupe des
Chargeurs Reunis, positions which he held from 1964 to 1968. From 1971 to
1996, he served as Chairman of a number of leading air, sea and rail
transport companies. He has been Chairman of A.V. Consultants since 1989.
Mr. Antoine Veil holds the following honors and decorations: Grand
Officier de la Legion d'Honneur, Commandeur de l'Ordre National du Merite,
Officier de la Sante Publique, Officier du Merite Commercial et Industriel,
Chevalier du Merite Agricole and Chevalier de l'Economie Nationale.
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 and Havas Media,
which are headquartered in New York and Barcelona respectively, and through
a number of independent agencies renowned for their creativity, such as
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:
This document contains certain forward-looking statements which speak
only as of the date on which they are made. Forward-looking statements
relate to projections, anticipated events or trends, future plans and
strategies, and reflect Havas' current views about future events. They are
therefore subject to inherent risks and uncertainties that may cause Havas'
actual results to differ materially from those expressed in any
forward-looking statement. Factors that could cause actual results to
differ materially from expected results include changes in the global
economic environment or in the business environment, and in factors such as
competition and market regulation. For more information regarding risk
factors relevant to Havas, please see Havas' filings with the Autorite des
Marches Financiers (documents in French) and, up to October 2006, with the
U.S. Securities and Exchange Commission (documents in English only). 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): Average Net debt
Average Net debt (quarterly or annually) is calculated for the main 4
countries (France, USA, UK and Spain), as the difference between structured
gross debt (oceanes, credit lines, etc...) and treasury in bank measured on
a daily basis; concerning the other countries, the average net debt is the
debt accounted as of each quarter.
Chief Financial Officer
2 allee de Longchamp 92281 Suresnes Cedex, France
Tel +33(0)1-58-47-90-00 Fax +33(0)1-58-47-99-99