Havas : Q3 2017 revenue

P R E S S R E L E A S E

Paris, November 16, 2017

We take particular satisfaction from the recovery in North America, where we are reaping the benefits of our new organization and the unflagging commitment of our teams.

APAC and Africa reported highly encouraging operating performances in a macroeconomic climate rather less favorable than in the recent past.

Europe remained in negative growth over the quarter. There are many factors at work, foremost among them reduced spending by most of our clients or a change of management in certain countries, such as in our UK media agency.

Nonetheless, despite an ever more challenging sector environment, we remain positive over the mid-term because we believe firmly in the positive effects of our strategy and in our client-centric organization. We will be forging ahead with our strategy to make our structures and the organization of our Villages even more fluid.

We are also delighted to have joined the Vivendi Group to work together on creating a world leader in content, communication and distribution."

1. KEY FIGURES

   Revenue (in €M)	Q1 2017	Q2 2017	Q3 2017	9 months 2017	Organic Growth Q1 2017	Q2 2017	Q3 9 2017	months 2017

   EUROPE	250	298	256	804	EUROPE	0.0%	-0.7%	-4.7%	-1.8%
   of which France	101	125	99	325	of which France	1.4%	8.9%	2.6%	4.6%
   UK	60	58	57	175	UK	0.5%	-7.1%	-10.9%	-6.0%
   Other European countries	89	115	100	304	Other European countries	-2.0%	-6.3%	-7.6%	-5.6%
   NORTH AMERICA	197	201	185	583	NORTH AMERICA	0.9%	-1.7%	2.9%	0.6%
   APAC & AFRICA	39	51	48	138	APAC & AFRICA	-5.1%	3.2%	8.4%	2.3%
   LATIN AMERICA	33	39	36	108	LATIN AMERICA	3.2%	-4.0%	13.4%	3.6%
   TOTAL	519	589	525	1 633	TOTAL	0.1%	-0.9%	0.1%	-0.3%

2. GENERAL COMMENTS

→ Consolidated Group Revenue for Q3 2017 was €525 million, compared to €537 million for Q3 2016. For the first nine months of the year, consolidated Group revenue was €1,633 million compared to €1,624 million for the equivalent period in 2016.

→ The Group's organic growth (excluding exchange rate variations and changes in the scope of consolidation) was +0.1% for Q3 2017 and -0.3% for the first nine months of 2017.

Exchange rate variations had a negative impact of €7.1 million on the first nine months of 2017, mainly due to a falling UK pound, Argentine peso and Mexican peso. Aggregate growth over the first nine months at constant exchange rates was +1.0%.

Changes in the scope of consolidation had a positive impact of €21 million at end September, with the main contributions coming from Target Media (UK), RiverOrchid (Asia), Lemz (Netherlands) and Agence 79 (France).

The French agencies kept up their dynamic performance in both creative and media, posting organic growth of +2.6% in Q3 and +4.6% over the first nine months of the year.

In the UK, spending by major clients such as Unilever or Pernod Ricard continued to fall, with the impact falling heaviest on the media business. This resulted in organic growth of -10.9% for Q3 and -6.0% to end September 2017, although this was measured against a very high baseline (+8.6% in Q3 2016).

A number of other European countries also reported negative organic growth: Spain, Germany, Belgium and Portugal were the hardest hit by the downturn, primarily in the media business.

The region made excellent progress over the quarter, posting organic growth of +2.9% due in large part to the turnaround at Arnold and the performance of Havas New York, particularly in its healthcare business. US agencies also benefited from the effects of recent account wins and increased spending on the part of certain clients. The reorganization introduced since the start of the year played a key role in achieving this strong performance.

Asia proved its dynamism with yet another quarter of significant organic growth at +8.4%, driven by the creative business. Australia, China and Hong Kong were the main growth drivers. The region also benefited from increased spending by recently won clients such as Glaxosmithkline, Swarovski or LG. Over the first nine months, aggregate organic growth was +2.3%.

After a second quarter in negative territory, the region bounced back strongly in Q3 2017, all countries considered (Brazil, Mexico, Argentina and Chile), largely thanks to the media business. Organic growth hit +13.4% for the quarter (albeit against a low baseline of -6.3% in Q3 2016) and +3.6% for the first nine months. The region is well served by clients that are still ramping up their spending, such as Hyundai Kia.

HIGHLIGHTS OF Q3 2017

1. NET NEW BUSINESS1

   At the end of September, net new business1 stood at €1,702 million (in terms of billings, the yardstick adopted by the market).

   Some of the most significant wins in Q3 2017 include: Global:

   LOT Polish Airlines (Havas Media Poland and HMI Frankfurt), Bord Bia (Havas Dublin & Havas

   Shanghai), Lacoste (BETC Digital), Naver (BETC Design);

   Asia-Pacific: BMW (Havas Media South Korea), Sino Group (Havas Media Hong Kong); Latin America: Nacion Servicios (Havas Media Argentina), TIM (Havas Media Brazil), GPA

   (BETC/Havas Sao Paulo);

   USA: Sanofi (Havas Media USA); BioMarin, PKU Franchise (Havas San Francisco);

   Europe: Office Outlet (Havas Media UK), Soubry (Havas Media Belgium), M7 (Havas Dusseldorf), CDiscount (Rosapark), Rabobank (Havas Lemz), LG (Havas Denmark).

   See annex 1 for a complete list of new account wins.

2. ACQUISITIONS

In mid-September, the Group announced its acquisition of New York-based agency The 88. The digital/social boutique agency provides strategic direction, creative services, influence, event coverage and social media management to fashion, lifestyle and consumer brands.

Over summer 2017, the Group also finalized the acquisitions of So What Global, a UK-based communications agency specializing in healthcare, wellness and lifestyle, and Blink, Israel's first social media agency.

1. CORPORATE SOCIAL RESPONSIBILITY

   Thanks to imaginative CSR initiatives by Group agencies, Havas is having an increasing impact on local communities around the world.

   In the Netherlands, Havas Lemz is partnering with Justdiggit to turn dry land green again in Kenya, Morocco and Tanzania. By capturing rainwater and introducing sustainable agriculture to establish healthy ecosystems, the partnership aims to promote the growth of more sustainable economies across Africa.

   The determination of Joon Kwon, Creative Director, Havas Seoul, to find a cheap, safe, long- lasting and eco-friendly alternative for women with no access to feminine hygiene products resulted in the design of the Dream Ring, costing just one-thirtieth of the price of a regular pad. Dream Ring was named a Top Winner in the IDEA 2017 global design contest for its ingenuity and in the hope that it will help solve one issue of gender inequality in developing countries.

   Havas Canada has joined forces with Habitat for Humanity to try and find a solution to the housing crisis in Toronto. By modernizing and rethinking the charity's digital presence in order to

   raise public awareness and make it easier for people to donate time, money or belongings, Havas Canada hopes to increase the community's engagement with Habitat for Humanity.

   Havas Group has great expectations of the integration of Vivendi's CSR vision into its corporate practices: the promotion of cultural diversity in content production and distribution, knowledge sharing, and vigilance in the conduct of affairs between other CSR initiatives pursued by Vivendi.

   For more information about the Group's CSR policy: http://www.havasgroup.en/csr

2. AWARDS & ACCOLADES

During the third quarter of 2017, the Group received a total of 143 awards at various events. At the global level, Group agencies took a total of 21 Clio Awards.

In APAC, Campaign Brief Asia published its ranking of Agencies of the Year by country: Havas Shanghai came in 3rd and Taiwan and Singapore made the Top 10. At the Spikes Asia, Group agencies won 16 awards including a Grand Prix in the "Music" category for the Air New Zealand "Summer Wonderland" campaign by Host Sydney/Universal Music.

In the USA, Camp + King was awarded Gold at the Small Agency Awards organized by Advertising Age.

Havas Lemz was named one of Amsterdam's 10 most creative agencies in The Drum rankings.

Fuel Lisbon made a splash at the Premios M&P Criatividade with a total of 11 awards, including "Agency of the Year" and a Grand Prix and two Gold awards for the "Sequeira in its rightful place" campaign for client MNAA/Publico. At the UK's Creative Floor Healthcare Awards, Havas Lynx won awards in five categories for its campaigns "B!rth" for The Royal Exchange Theatre, "It's About Time" for Teva Neuroscience and "Sun Safety on Site" for Cancer Research UK/HSS Hire.

Group leaders winning recognition in the third quarter included Imogen Hewitt, Head of Strategy, Havas Media Australia, who received two accolades, voted Woman of the Year and winner of the "Strategy" award at the B&T's Women in Media Awards. Donna Murphy, CEO Havas Health

& You, featured in the "4's Top 100 Shaping the Future of the Industry" and Anita Nayyar, CEO India & South Asia, Havas Media, was awarded 1st prize in the category "Women Leadership Award for Excellence in Advertising & Media Sector" at the Women Leadership Excellence Awards 2017.