is based on six rankings?

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1 Why the RECMA evaluation is based on six rankings? CONTENTS A- Structure of the industry : 7 companies managing 16 global agencies B- the six points of analysis and the six rankings C- the PanoraMAX summarizes the RECMA research with the Wheel of success

2 A-Structure of the industry (½) Six holding groups (see 2/2) including Media branches managed by Companies which drive global agencies, other local or standalone agencies as well as trading organizations.

3 Structure of the industry (2/2) International advertisers have the choice between 16 global agencies or even dealing with 6 holdings/ 7 companies. Not talking about independents or standalone agencies.

4 GroupM has developped 4 global agency networks, a few other local l brands and several client dedicated units. Activity volume (Billings) of Client dedicated units (E) are included into the Global agencies

5 Publicis operates with two companies which h managed one global l agency network to date. MediaVest is either a unit within Starcom MV network (Starcom + MediaVest) or a standalone agency in the USA, RU, Pol, etc. Same for Optimedia in six countries

6 Omnicom has developed 2 global agency networks, but in several countries UK, Russia, Poland, Romania, Greece, India, there is a fragmentation of brands with other agencies under OMD or PHD umbrella

7 DAN Dentsu Aegis is developing 3 global agencies, in parallel l with digital i agencies (iprospect, Isobar) and diversification (Posterscope)

8 Mediabrands has launched a third global offering with ih BPN and develops diversified resources (MAP, Orion)

9 Havas Media has expanded Arena with LG and Forward with Telefonica while capitalizing on the Havas village.

10 B-The RECMA evaluation is based on six rankings Publication date and data global report 6. global report 1. June 2015/ data year 2014 global report 5. global report 2. April 2015/ data year 2014 January 2015/ data end Top 140 global report 4. advertisers global report 3. July2015/ data January2015/ data Oct2014

11 1-Overall Activity volume $m 1. Overall Activity 2014 includes Buying billings (gross adjusted) + Digital & Diversified Services capitalized billings

12 Overall Activity / billings global report n 1 First of all, RECMA published its first European Billings ranking in sixteen years ago. As the billings were based on declarations, the ranking tables were not reliable. However, although RECMA was estimating the value of agency client lists in 50 countries - based on disputed adspend in adjusted gross, the need for a better metric was recognized.

13 Overall Activity / billings The table includes a ranking for the six holdings and for the 7 companies. The global agencies with a single agency per countryare listed with their ranking for the top seven ones. Industry shares don t include independents.

14 Overall Activity / billings The 16 global agencies dfi defined d with ih a single agency per countryare listed with their industry shares don t excluding independents.

15 2- Specialized resources Digital Specialists (Search, Mobile, Social, e-commerce,,programmatic) + Diversified Services ( Data & insights ; contents; etc)+ International coordination

16 Resources global report n 2 RECMA built its first inventories and rankings in 2010 and now is publishing the Resources report based on staff numbers (weighted by country). Although still in progress this research delivers a different hierarchy of the players than in Billings and Compitches. Based on Resources, the Billings report evolved to an Overall Activity volume measurement remaining not comparable to agency revenues or buying power; these two concepts being excluded from the RECMA research.

17 3- Core clients (top 140 int l advertisers) The following graph shows three perimeters describing advertisers : overall agency clients in 50 countries 140 int l «core clients» 45 giants

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19 Core Clients global report n global report n 3 Agencies requested to be compared on the basis of these "core clients", whilst advertisers needed to have references regarding their competitive set. Therefore RECMA produced two additional reports. One, branded "Core clients" focusing on adspend volume, rankings, profile between local and global advertisers, etc. This report shows strong differences between agencies whilst ranked equally through the four first criteria.

20 4- Pitch cycle ( ) 12) The second study towards the top 140 advertisers met a massive support from our industry partners thanks to spectacular graphs that work as the memory of an hectic competition. Following page : example Havas

21 Pitch Cycle global report n global report n 4

22 Pitch Cycle global report n global report n 4 This report branded "Pitch cycle" focuses on the top 140 advertisers and relies on a new metric : the New Business Performance Rating assigned to winners and incumbents from 500+ local, regional or global pitches since January The Pitch Cycle report stunned the industry when revealing that GroupM surged in the ratings following the announcement of the proposed merger between Omnicom and Publicis mid Coincidence or impact of GroupM leadership? Now the Pitch Cycle is updated several times per year. RECMA GLOBAL REPORT

23 5- Competitiveness in pitches Competitiveness i in pitches in 42 countries Registering and analysis of 3000 account moves with details about the competition : incumbent; contenders; audit / consultant; budget amount ; type of assignments decision process : local, regional or global Analysis of a full year.

24 Compitches global report n 5 In Early 2002 RECMA published its first "Compitches" Competitiveness in pitches report which gathered and assessed wins and departures reported by agencies or declared by competitors. Year after year, the Compitches methodology has been refined and the number of claims declined to less than ten out of 600 grades assigned now from A+ to C.

25 example of a of a Compitches file grades 2014 WINS (of which retentions) DEPARTURES wins minus depart A Media agency Sample Mediaplus Key pitches Other pitches Key pitches Not taken into & reviews account & reviews over 2m over 15m over 15m XXX Lutz KG (furnitures) incl. Mömax d. 39m from OM D Heye Close review +3pts Suzuki international (auto) 27m to Mediateam360 from Mindshare/Media Consult Close review +3pts Poco Einrichtungsmärkte (furnitures) 16m in 2013 from OM D Heye Close review. +3pts Carnival Corp (travel) ret. Aida +ext. Cunard from Mediaplan + Costa from Carat 28m in pts Dr. Schwabe (food) DHU, Spitzner, Schwabe 23m to WEFRA-Mediaplus from MEC Close review with media lead between M ediaplus and M EC / no formal pitch +2pts Zertus group incl. -Dextro Energy with WEFRA & Pullmoll from Zenith (not in pitch) -ret. I mporthaus Wilms with WEFRA Pitch against Crossmedia +1pt Zott (food) d. 8m from: Starcom Contenders: Carat, OMD in Dec eff. Jan 2015 from after a pricing review against incumbent and Brainagency +1pt Ernsting s Family (clothing) d. 6m from OM D Heye +1pt Erasco /Continental Foods / Campbell d. 5m from MEC Pitch against: Pilot, MEC +1pt Wöhrl/SinnLeffers (apparel) 0,8 in 2013 d. 3m for 2014 from Media Relations for the brand Wöhrl and Pilot for the brand SinnLeffers Pitch against both incumbents. +1pt Nicko Tours (travel, cruises) 12m in 2013 from in-house Pitch against: Mediaplan, MEC +1pt ret. part. Mumm / Rotkäppchen (alcohol) planning offline & online Mediaplus kept the planning for all brands and a minor part of the buying (ARD/ZDF) in regard to Mumm and some minor sponsoring for Jules Mumm. Pitch against: HMS Vizeum +1pt Shpock (second hand online portal) d. 10m from inhouse. Pitch against: Carat +1pt Delica (food) d. 2m from inhouse to Mediaplus Pitch for Germany, Austria and France High local and global involvement Pitch against OMD +1pt Steigerwald Ar zneimittel / Bayer (pharma) 4m in 2013 from MediaCom Move without pitch Develey d. 2m 0,5 in 2013 from OM D Heye BSH Hausgerate online no details Samsonite 0,8m from UM Huelsta (furnitures) d. 3m TV No pitch. bet-at-home /Jonsden Properties Ltd. (leisure) online d. 2m to mediateam360. No pitch Funke/Bild der Frau d. 3m From Carat, MEC, OMD Gruner & Jahr (media ) d. 10m from multi agencies Pitch against: MEC, Carat, Mediacom, OMD. LEGO 22m in 2013 to Carat GLOBAL (online comparison prices portal) 37 in 2013 to Havas Media It wasnot a real pitch but a close review -3 pts Other pitches over 2m M umm / Rotkäppchen d. 11m TV buying for SOM & IP Sales houses to Vizeum Effective date: Jan pts Mediaplus keeps TV planning as well as Check24 all other media (planning and buying) -1pt Not taken into account AOK Hessen (insurance) to Carat d. 1m No pitch W.L. Gore (clothing) 0,3m to Carat Pitch against incumbent.

26 Compitches global report n 5 Extract of the latest report Compitches based on 42 countries with weighting and covering all the year The top networks can be compared by Quali-shares.

27 6-The Qualitative The Evaluation In 2006, RECMA published its first "Qualitative Evaluation" in the USA. The research is now based on 19 criteria covering a large spectrum of agency results and capabilities. It is implemented in 40 countries and updated two to four times a year. Following page : extract.

28 extract extract

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30 Network Diagnostics global lbl report n 6 The success of this research towards the local agencies - drove RECMA to gather all the qualiscores in one global ranking and to publish it as the "Network Diagnostics". In 2015, two editions have the Diagnostics have already been published based on a state of the competition in February and in May. A third edition is scheduled for October.

31 Network Diagnostics global lbl report n 6 Extract of the three latest report Network Diagnostics based on 40 countries with weighting. The top networks can be compared by Quali-shares.

32 Six rankings summarized by 6. Qualitative i Evaluation in June 2015 based on 19 criteria 5. Compitches 2014 Competitiveness in pitches the Wheel of success 1. OverallActivity i Billings 2014 including Digital & Diversified Services 2. Specialized Resources Digital & Diversified Services [email protected] m All rights reserve ed RECMAJULY [email protected].. e 4. Pitch Cycle ( ) based on Core Clients only Top 140 advertisers 3. Billings & Profile towards Core clients only amax by RECMA - Panora

33 C- PanoraMAX the report gathers and compares 6 rankings The PanoraMAX report brings a user-friendly access to each of these rankings by providing a PDF file for 22 agencies (network) or companies (Groups). Every advertiser having a shortlist of agencies, can study their profile and results thanks to the Wheel of success - the name of the summary chart.

34 example of a Wheel of Success The six global RECMA reports are summarized by rankings n 7 Qualitative n 9 Billings 5,0% and industry Evaluation 7,6% shares. RECMA added a commentary. n 4 Compitches 7,6% n 6 Resources 8,6% n 3= Pitch Cycle 12,5% Top 140 n 10 advertisers Core clients 3,2% % Challenging the leaders as n 7 in Quali Evaluation with a share of 8% versus 5% in Activity volume. N 3 in Pitch Cycle over three years with a strong 12,5% share.

35 The RECMA research in three steps MAX The PanoraMAX report gathers all the 6 RECMA research and delivers analysis and perspectives (960 pages) 3- PanoraMAX all the 6 RECMA research 6- Pitch Cycle 2- Premium 5- Core clients Major Wins Regional Alignments databases 1- Core 4- Quali Evaluation/ Network Diagnostics 3- Compitches Competitiveness in pitches 2- Specialized Resources / Digital 1- Overall Activity i volumes / Billings i