HAVAS ON ITS MARKET
Havas ranks seventh worldwide among the major communications groups with 2009 revenue of €1,441 million (source: press releases by main competitors reporting 2009 results). Its main
competitors are WPP, Omnicom, Interpublic, Publicis, Dentsu and Aegis.
Havas’ markets are distributed as follows:
North America 32%
France 23%
Continental Europe 23%
excluding France
UK 11%
Latin America 6%
Asia-Pacific 5%
TOTAL 100%
Revenue per client remains well distributed; the Group’s leading client represents 3% of total revenue and the ten leading clients account for 20%.
Principal markets
Group revenues by business unit 2009 Group revenues by business unit (in percentage) :
Strategy
The first strategic plan, covering the period 2006-2009 is now complete. Its key objectives were essentially financial and focused on restoring the Group’s financial position. As at end 2009, Havas
now has zero net debt and a financial structure that is one of the soundest in the industry. Its financial performances—organic growth and profitability—are now well within the industry average.
On the strength of this recovery, Havas now intends to exploit its structural advantages to transform the Group into a sector leader and the gold standard in terms of sustainable development. Havas is possessed of unique competitive and structural advantages: a core shareholder prepared to take the long view, human dimensions, a multicultural base and loyal clients.
The communication industry is currently in the throes of a farreaching revolution. The new model, which hinges on interactivity with Internet and social media playing a central role, is increasingly gaining ground. The conventional model of communication has to change, and Havas has precisely tailored its size and organization, centered on two business units, across its regions to keep pace with the rapid, profound changes sweeping through today’s world of communication.
The Group’s development strategy is to continue its transformation to make the most of the momentum of change under way.
Priority areas for progress in the years ahead will be:
- a new vision and creative philosophy focusing on value added in the age of interactivity and sustainable development;
- putting digital even more firmly at the heart of our businesses: pertinent data and knowing your client are key issues, and Havas enjoys a significant lead in this area. Even with no significant acquisition in the sector, digital now accounts for a 16% share of Group revenue;
- developing and supporting international brands. Havas can proudly lay claim to an advertising network ranked the largest in terms of volume of international accounts for the fourth year running by AdAge: Euro RSCG. Havas intends to maintain and extend its lead through a process of integrated work on channel planning, which is key in an age of media fragmentation;
- sustainable development: its impact on brand equity is central, and the brands need to build a sustainable relationship and conversation with all their stakeholders in order to strengthen the fabric of their social capital.
These progress areas will enable Havas to:
- intensify the consistency and pertinence of the advice it offers its clients;
- boost its commercial effectiveness;
- strengthen structures in strategic businesses;
- sharpen its ability to grasp growth opportunities on the fringes of its different businesses;
- retain and continue to attract top talent.
This business model will create value at all levels: for Havas shareholders, as the Group improves its operating performance; for clients, thanks to a distinctive offer and endless capacity for innovation; and for employees, encouraging an even stronger sense of belonging to the Group.
Implementing this plan will also require changes to the Group’s organization that will be introduced over the coming months, bringing it closer still to local markets.