Leo Burnett Philosophy

Leo Burnett Belgrade

The most awarded agency in region 7 years in a roll

Controllers evaluation

Controller as a rally coodriver

Controller’s Rowing roll

Controller is Navigator

Controlling organization set up

• Controlling as department is based in every SSC covering Publicis WW operations• Since SSC covers every country and entity basically controlling is present in every business unit• SSC manage to consolidate same ERP use, better prices for Overhead costs, with centralized shared

administration PC are lower in global.

Reports

• Monthly based reports → P&L, BS, TWC, CPR, CSRGI,RF• Quarterly based reports → M&A report, Flash RF, MNC report• Yearly based reports → Commitment, Commitment CPR, CSRGI.

DecemberMonth of Data Year to Date Data

Actual Commit_SX LYSX Actual Commit_SX LYSX

Variance

against

Commit

Varianc

e

against

Prior

Year

in €(000) in €(000) in €(000) in €(000) in €(000) in €(000) in €(000) Month YTD Month YTD

631,2 516,5 476,4 Revenue 4.315,9 4.209,4 106,5 103% 4.088,0 4.061,0 114,7 228,0 154,7 254,9

(140,9) (130,0) (124,2) Salaries (1.655,3) (1.754,2) 98,9 (1.662,2) (1.692,4) (10,8) 6,9 (16,7) 37,0

(23,3) (22,2) (20,4) Benefits (274,2) (290,9) 16,7 (268,4) (280,7) (1,1) (5,8) (2,9) 6,5

(0,6) 2,8 3,5 Other Employee Costs 34,9 71,6 (36,7) 34,5 69,1 (3,4) 0,4 (4,0) (34,2)

0,0 0,0 0,1 Severance Costs (8,7) (19,2) 10,6 0,0 (18,6) 0,0 (8,7) (0,0) 9,9

(24,0) (12,9) (21,6) Freelance Costs (226,8) (180,3) (46,5) (161,0) (173,9) (11,1) (65,8) (2,4) (52,9)

0,0 0,0 0,0 Bonus 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0

(188,8) (162,4) (162,7) Personnel Costs (2.130,1) (2.173,1) 43,0 (2.057,2) (2.096,5)

-29,9% -31,4% -34,1% % Revenue -49,4% -51,6% 0,0 -50,3% -51,6%

(56,7) (4,9) (11,1) Client Costs (160,0) (92,7) (67,2) (73,2) (89,5) (51,8) (86,7) (45,6) (70,5)

-9,0% -0,9% -2,3% % Revenue -3,7% -2,2% (0,0) -1,8% -2,2%

(30,1) (25,9) (28,6) Occupancy Costs (320,1) (347,8) 27,7 (322,1) (335,5) (4,2) 2,0 (1,5) 15,5

0,0 0,0 0,0 Shared Services Costs 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0

(2,9) (4,0) (3,1) Depreciation (35,2) (42,7) 7,6 (49,5) (41,2) 1,0 14,3 0,1 6,1

(89,8) (51,1) (63,1) Other G&A (724,1) (693,9) (30,2) (639,3) (669,4) (38,7) (84,8) (26,7) (54,7)

(122,8) (81,0) (94,7) Total Overheads (1.079,3) (1.084,4) 5,1 (1.010,9) (1.046,2)

-19,5% -15,7% -19,9% % Revenue -25,0% -25,8% 0,0 -24,7% -25,8%

(9,5) 0,0 (1,3) FX gain/loss (4,1) (12,0)7,9

0,0 (11,5) (9,5) (4,1) (8,1) 7,5

(3,4) 0,0 (1,2) Other OI (34,7) (14,5)(20,2)

0,0 (14,0) (3,4) (34,7) (2,2) (20,7)

-0,5% 0,0% -0,2% % Revenue -0,8% -0,3% (0,0) 0,0% -0,3%

(24,0) (19,6) (18,1) ASF (164,0) (160,0)(4,1)

(155,3) (154,3) (4,4) (8,7) (5,9) (9,7)

-3,8% -3,8% -3,8% % Revenue -3,8% -3,8% (0,0) -3,8% -3,8%

0,0

(395,7) (267,9) (287,8) Tot Operating Costs (3.568,1) (3.524,7) (43,4) (3.296,6) (3.400,4) (127,7) (271,5) (107,9) (167,6)

0,0

235,5 248,6 188,7 Operating Income 747,9 684,7 63,2 791,3 660,6 (13,1) (43,5) 46,8 87,3

37,3% 48,1% 39,6% % Revenue 17,3% 16,3% 19,4% 16,3%

Actual COMMIT_D LYSX Actual Actual COMMIT_D LYSX99,0 101,0 97,0 Headcount 99,0 97,0 101,0 97,0 (2,0) (2,0) 2,0 2,0

1.197,3 (313,0) 967,2 TWC 1.197,3 1.011,6 (313,0) 967,2 1.510,3 1.510,3 230,0 230,0

Importance of controlling

• Driver of sustainable growth • Support in fee negotiation• Gives you clear picture and support for right decision• Reduces variance• Profit defender• Secures investment • Diagnostician