Link to translation : {http://bit.ly/1gZPMVP}
Link to Original/French Article : {http://bit.ly/1eY9S2f}
Now debt free, group communication could push fires on acquisitions. The question of integration of Havas in Vivendi does not exist today, says its CEO.
Appointed CEO of Havas in early January, Yannick Bolloré, 34, son of Vincent, speaks for the first time on its strategic vision for the future of the 37% subsidiary of the Bolloré group. Nine months after the announcement of the proposed merger between Publicis and Omnicom, placing it on the agility of his model, lighter and more mobile.
Havas prides itself on being the only holding French independent advertising. But the merger between the number two and number three worldwide, Publicis, Omnicom, the problem of your critical size ...
Havas will indeed remain, mechanically, the only independent French group, with headquarters remaining in Paris.
Publicis continues to assert that the merger does not mean the purchase of a French company by a foreign and the group founded by Marcel Bleustein-Blanchet will never be American ...
I hope for him that John Wren (Omnicom's boss, Ed) has not read this interview! That said, this is not the fact is the last French Havas group bring us customers, but the agility of our model, lighter and more mobile. It is easier to win a marathon 70 pounds when you weigh 100 pounds ... Let's be clear: Havas strategy is not to become the biggest. Although the issue size is real because it is necessary to have a global dimension. But Havas, with national, European customers (54% of our margin comes from Europe) and international, now holds the global scale: in Latin America, Brazil is in the top seven of our major markets and Asia Southeast Australia can boast a double-digit growth, thanks to the defense budget that we have to win.
You disclaim Havas is a target to be redeemed, including WPP, the current world leader?
Altogether. Our share is stable and Havas is now debt free, with net debt fell to 90 million. Specifically, Havas is not for sale and we are located in a much more logical buyer or seller.
And what form could then take these acquisitions? In recent years, the external growth of the group has been quite sluggish ...
It is true Havas has not had in recent years a policy of aggressive acquisitions. The group was very traumatized by costly and unsuccessful operations, such as the acquisition of Snyder, bought $ 2.1 billion in 2000 by the previous team. Five years later, in May 2005, the Bolloré group entered the capital of Havas, while indebted to the tune of € 750 million, and I'm not sure it still exists in its current form if we were not intervene. The ratio between net debt and our equity is now back to 7% by the end of fiscal 2013 (25% on average debt over the year), which should allow us to resume growth external. After that, what is important is to have a clear strategy.
Specifically, the strategy of Publicis, Omnicom is to partner to better counter the Net giants and regain control of datas, imperative for their advertisers. Against any attack decided to adopt Havas?
There are three options. Either we continue to buy targets small to medium size and redistribute 40% of our profits to shareholders. Acquisitions we look aim to strengthen our technological expertise and our presence in certain geographic areas. Either we participate in a horizontal consolidation of the sector by buying some of our rivals. But I do not see what customers would benefit. Or, finally, we are considering investing in certain occupations to link the world of datas more closely with the content. We have already invested in a platform to better leverage our datas. Havas Media has also mounted with Orange, last October in Los Angeles, an experiment called "Siliwood", an R & D meeting the growing interest marks the convergence between the media industry and the entertainment industry . We brought a great mathematician awarded the Fields Medal, the equivalent of the Nobel Prize.
Which means you have to carry this type of strategy?
We do not have a problem of resources. Havas has a credit line of more than one billion euros.
Havas stay in the Vivendi group, whose largest shareholder, Vincent Bolloré is poised to become chairman of the supervisory board in June, would it make sense?
This has been the case in the past, since the Compagnie Générale des Eaux, Vivendi has since become, Havas had bought in 1998. Advertising section was removed from the group in 2000 to become Havas Havas Advertising and short. Today, the question does not arise. And there is no record in the study. The main link between Vivendi and Havas is that its subsidiary Canal + is one of our major customers.
The acquisition of SFR Numericable, if it materializes, he risks losing your agency Gauls SFR budget, its second account in terms of margin?
Things are totally compartmentalized. The first case did not impact at all on the second. For the rest, we believe that our teams have all the skills to keep our customers.
Your father Vincent Bolloré it is very present in the daily management of Havas?
It is not quite the contrary. He left our board of directors in August. It would be my great honor to welcome him back.