OVERALL ACTIVITY VOLUME

Transcription

1 RECMA Annual July 2014 GLOBAL REPORTS OVERALL ACTIVITY VOLUME ( 2013 Billings ) Brands, Networks & Groups rankings 62 countries

2 RECMA Inc New York RECMA SA Paris- London- Bangkok- Perth; Jul 11, 2014 Introduction Dear Partners, Since 1999 RECMA has been publishing the annual BILLINGS report which stands as the flagship report for the media agency industry. This is the 15 th edition. Many advertisers (media / procurement managers), consultants, analysts, vendors and media agencies are using the global, regional or country rankings in their day-to-day business. Starting from collecting and analyzing agency declarations, step by step, RECMA has built a robust research based on two metrics: one is the measurement of the buying billings based on the compilation of agency client lists with adjusted ad monitored spending allocated to each account. the other one is the evaluation of the non-traditional activities: a growing field which includes multiple areas from Search to Branded Content. Five years ago, the sum of buying billings + specialized services (including digital) enabled us to produce a new ranking based on the "Overall Activity" volumes. This current report is entitled "Overall Activity" and the word Billings (referring to buying media) has been dropped. Among the several improvements of this research, we paid a careful attention to the growth rates y-o-y to adjust the estimated Overall Activity volumes. Therefore groups and networks can be compared not only in terms of rankings or intra-network industry shares but also according to growth rates. This new point of analysis is now used as one of the 20 criteria in RECMA Qualitative Evaluations by country- a key research for all industry professionals. Following the release of this report, we are updating the 50 country Qualitative Evaluations, starting with the Top 14 countries (to be available by the end of August). The Qualitative classification (Dominant, High Profile, Good Profile, Average, Low) - is more relevant and cutting-edge. Details about the breakdown between buying billings and digital / diversified services are not contained in this report. The Domestic reports as well as the Specialized Resources global report will provide data and analysis on that area. However we have applied the new concept of Operational Groups that has been initiated in the report Pitch Cycle published in June- to offer a third ranking of the ten key players. The twenty RECMA regional researchers are grateful to the 900 media agencies that have answered to our questionnaire in February and cooperated to check their client lists. Anne POUILLON Director of Research Fulbert BILLAUDOT Director of Research

3 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; Jul9, 2014 CONTENTS Introduction Key Findings in 2 pages Part 1 - Methodology A- 9 Key Concepts and Definitions B- 12 Questions on the Research Methodology C- Research perimeter Part 2 - Rankings A- Global rankings in 62 countries B- by segment (Top 14, Second Tier (48 countries), Top 14 vs. Second Tier rankings) C- by criteria of performance D- Rankings by 4 zones & 13 regions Part 3 - Dashboards A- GroupM / B- Publicis (media) / C- Omnicom Media Gr. / D- Dentsu Aegis Network / E- Mediabrands / F- Havas Media Group Part 4 Details by Country A- Table 1 by local agency brand in 62 countries B- Table 2 by Network and Group of Networks in 62 countries

4 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; July Ann Part ONE Methodology

5 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; Jul9, 2014 CONTENTS Introduction Methodology Part 1 Methodology A- 9 Key Concepts and Definitions 1- Overall Activity vs. Buying billings 2- Traditional vs Non Traditional media 3- Country adjustment deflators applied to Buying billings. 4- Global networks with several brands 5- Local agency brands vs sub-agencies or units 6- Standalone agencies (other media entities) 7- Networks vs Independents 8- Independents Affiliated vs Partners 9- Ratio Overall Activity/ Staff B- 12 Questions on the Research 1- How does RECMA collect information to build Overall Activity billings? 2- How does RECMA establish the Traditional media (Buying) billings? 3- How does RECMA estimate the Non Traditional media (Specialized Resources) billings? 4- How does RECMA estimate the final Overall Activity GROWTH rate?

6 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; Jul9, 2014 B- 12 Questions on the Research 5- How does RECMA estimates the final Overall Activity BILLINGS amount? 6- Why RECMA buying billings estimates are based on a research perimeter limited to 80-85% of advertisers adspends? 7 Why does RECMA apply deflator or inflators to collected traditional media figures? 8- Why does RECMA apply specific deflators to Giant Advertisers? 9- How does RECMA value the planningonly assignments? 10- Why does RECMA restate the figures for previous years? 11- Why does RECMA establish three different rankings for each country? 12- In which currency are the Billings figures reported? C- Research perimeter 1- MAP of the Media Agency Industry covered by RECMA 2- Country weighing table according to RECMA 3- Geographical coverage by Network 4- Standalone agencies reporting to the Groups 5- Second brands reporting to the Networks 6- Major Independents evaluated in the report

7 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong July AnnE 9 Key concepts and definitions 1- Overall Activity vs. Buying billings Overall Activity is the unique metric retained by RECMA for ranking media agencies. - It includes buying & planning billings (of Traditional media). RECMA buying billings correspond to the media buying volume placed by media agencies (on behalf of their clients) in traditional media only. The RECMA buying billings do include planning capitalized billings (tactical or implementation planning). - As well as three other categories of services (Non Traditional). In addition to the core media buying and planning functions, agencies offer extra services often remunerated separately from the core business assignments. Ad spending from these specialized disciplines are not measured by ad monitoring companies. 1- Digital services 2- Diversified Services 3- International Account Coordination. Therefore Overall Activity (OA) volume is larger than Buying Billings which represents from 50% to 90% of a media agency Overall Activity.

8 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong July AnnE 9 Key concepts and definitions 2- Traditional vs. Non traditional media (Specialized Resources) Traditional media covers: TV, radio, posters, newspapers and magazines, in other words all the ad spending monitored by research companies. In some markets, the ad monitoring companies do not measure all ad-spending for outdoor or display. These GROSS ad- spend figures are defined by RECMA as "Buying billings". They are adjusted with an inflator/deflator for balancing each country weight, following international references (ZO Forecasts, etc). In addition RECMA includes Specialized Resources services named Non Traditional in order to measure the whole of the agency activities: 1- Digital services (five segments from Search, Mobile, Social, Direct Response, Trading Desk/RTB) 2- Diversified Services (Branded Content/ Events/ Sponsoring/ Sports marketing; Local/ retail / multi-cultural/ Econometrics/ ad hoc research; Marketing consulting/ Bartering etc) 3- International Account Coordination. Hence, to reach the concept of Overall Activity volume.

9 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong July AnnE 9 Key concepts and definitions 3- Country adjustment deflators applied to Buying billings In order to balance countries weights in the RECMA global reports, adjustment deflators or inflators are applied, leading to buying billings GROSS ADJUSTED. 1- RECMA collects the ad monitored media spend (total media only) in 50 countries (from Kantar Media, IBOPE, etc.), The measurement methodology used by these research companies varies from one country to another. 2- RECMA readjust the media spend figures according to the weight (global share) of the advertising markets defined by the industry specialists such as ZenithOptimedia (AdEx forecasts) and GroupM (TYNY reports) 3- Hence, RECMA applies deflators or inflators in order to get a worldwide fair and consistent representation of the countries weight. Deflators are not average discount rates. 4- RECMA adds giant deflators for the few largest FMCG intl. advertisers (P&G, Unilever, RB, etc.) whose ad monitored data are usually even more inflated than the rest of the advertisers (since they predominantly spend in TV and get greater negotiated buying rates than others) 5- RECMA never produces net billings (after buying discounts) or net-net billings (after AVD Agency volume discounts) or agency revenues.

10 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong July AnnE 9 Key concepts and definitions 4- Global networks with several brands RECMA defines a network as an organization of media agencies having established offices in key countries (top 14) with a uniform brand identity and reporting to an international management in the aim of pitching for global clients. Are not considered as global networks: Arena (Havas Media Gr) 11 countries. Not positioned as a global player but as a second Havas Media brand except in countries where Havas Media is strong and needs a competitor within the Group (Latin America, Spain). MediaVest (Starcom MediaVest Gr/ Publicis) 10 countries. Not positioned as a global player but as a second SMG brand, except in the USA where MediaVest is a major player, HQed in New York where as Starcom is HQed in Chicago. No global clients served under the MediaVest brand only; no consistent coverage (absent or weak in Germany, France, etc); locally identified as a local brand, second offering of SMG. Optimedia (ZenithOptimedia Gr/ Publicis) 7 countries. Same situation as MediaVest. To be noticed that ZO clients are systematically managed under the brand ZenithOptimedia or Zenith except when there is a client conflict that leads to use the Optimedia branding.

11 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong July8, 2014 Ann C1- Media Agency Industry covered by RECMA 62 countries are covered in the Overall activity billings report. They are split into four zones and thirteen regions. Top 14 countries represent 80% of the worldwide billings: USA ($141Mo) - 38% / Top 5 Europe ($86m) 23% / China ($27Mo) - 7% However, due to the perimeter of the RECMA research, a significant part of Overall Activity Billings is not reflected in the global results mostly in the USA, Asia Pacific and Brazil where buying is managed at different level through the creative agencies media departments / media brokers / in house. The main significant part of the ad-spends not included in the research are: 40% in the USA managed by the media departments of advertising agencies + other independents + in-house departments. 40% in China managed by local brokers and advertisers. 95% in Japan managed by the full services agencies. Only five percents are managed by the international media groups. 95% in South Korea managed by advertising agencies. 100% in Brazil. Buying is entirely managed by the creative agencies due to country s regulations. RECMA also focuses on the major independents in each market.

12 RECMA The Research Company Evaluating the Media and Digital Agency Industry C1- The Media Agency Industry (Figures based on the RECMA Overall Activity report 2013) RECMA 2014 How to read this map Top 14 countries written in red All numbers are in Bn$ North America 149,6 Canada N 9 8,4 USA N 1 141,2 Latin America 10,9 0,2 Uruguay Top 5 Europe 85,3 UK N 3 26,1 France N 5 19,2 Spain N 11 Germany N 4 25,3 Nordics & Baltics 11,0 Ireland 1,0 Portugal 1,0 0,1 Estonia 0,1 Latvia 0,1 Lithuania Other Western Europe 18,1 5,9 Netherlands N 12 Middle East & Africa 9,5 Eastern Europe 11,0 Ukraine 1,0 Central Europe 6,2 0,6 Slovakia 10,0 Russia N 7 0,8 Hungary South East Europe 7,3 Middle East Morocco N 13 Mexico 3,5 0,3 Puerto Rico Slovenia 0,5 N 18 0,2 0,6 Romania 5,8 Serbia 0,2 Guatemala 0,1 Croatia 0,6 0,4 Bulgaria 8,6 Nigeria 0,3 0,5 Venezuela Colombia 1,4 Greece 1,1 2,8 Turkey 3,2 Peru 0,7 Italy 0,1 Paraguay 6,1 N 8 Israel 1,0 Chile 1,5 2,6 Argentina Norway 3,0 Denmark 2,8 Belgium Sweden N 19 3,5 2,5 3,9 Switzerland N 15 1,4 Finland South Africa N 20 3,8 Austria N 16 1,2 Czech Rep. 3,6 Poland N 17 India N 10 6,8 Australia N 6 North Asia 35,2 South Korea 0,6 China N 2 27,1 1,1 Japan South East Asia 12,7 Thailand 2,8 Malaysia 2,3 Singapore 1,7 Vietnam 0,7 Pacific 11,7 10,1 Philippines 2,4 Indonesia 2,8 Taiwan 1,9 Hong Kong 1,6 4,5 N 14 New Zealand

13 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; June 24 th Part TWO Rankings

14 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; June 30 th Part 2 A- Global rankings in 62 countries D1 Ranking by network D2-1 Ranking by operational Group D2-2 Ranking by Group (scale) D3 Ranking by OAB growth

15 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong June 24 th Overall Activity Billings 2013 Global ranking by network in 62 countries Key findings Intra network ranking represents 89,3% of the total market. Major independent and standalone agencies represent the other 10,7 share. SMG leads the ranking by network with 6 billions US$ gap ahead of OMD. A second pack of 6 networks between 7% and 11% industry share. A third pack of 5 networks between 3 and 5% industry share. Last pack of networks below 3% industry share with Vizeum and the uncompleted networks (Dentsu, BPN). Arena is integrated within Havas Media

16 RECMA Inc New York - RECMA London RECMA SA Paris RECMA Perth RECMA Bangkok June 24th, 2014 Global rankings in 62 countries D1- Networks ranking Industry perimeter includes major independents part of the survey which represent 9,6% vs. total and second brands representing 1,1% vs. total Rkg Industry Share % 2013 Overall Activity Billings $m Growth rate 2013 vs ,5 Starcom SMG Publicis (media) ,3% 2 11,0 OMD Omnicom Media Gr ,0% 3 9,6 ZenithOptimedia Publicis (media) ,1% 4 9,2 Mindshare GroupM ,5% 5 8,5 Carat Dentsu Aegis Ntw ,3% 6 8,3 MediaCom GroupM ,1% 7 7,1 MEC GroupM ,9% 8 5,1 UM Mediabrands ,8% 9 4,7 Havas Media ,1% 10 3,6 Initiative Mediabrands ,6% 11 3,5 PHD Omnicom Media Gr ,9% 12 3,0 Maxus GroupM ,3% 13 2,1 Vizeum Dentsu Aegis Ntw ,3% 14 0,6 Dentsu Media Dentsu Aegis Ntw ,7% 15 0,3 BPN Mediabrands ,4% 89,3 Total Networks ,2%

17 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong June 24 th Overall Activity Billings 2013 Global ranking by group in 62 countries Key findings Intra Group ranking represents 90,4% of the total market studied by RECMA (including standalone agencies part of the Groups). Major independents are not part of the total. The Group ranking does not include the major independents part of the survey First pack with two groups above 20% of industry share GroupM and Publicis (media) GroupM leads the ranking by Group with four networks Publicis (media) with two networks reaches the second rank. Second pack with OMG, Dentsu Aegis and Mediabrands. Havas Media with 4.7% in industry share.

18 RECMA Inc New York - RECMA London RECMA SA Paris RECMA Perth RECMA Bangkok June 23, vsc Global rankings in 62 countries D2-2 Groups ranking Groups include global networks as well as their second brands Second Brands represent 1,1% vs. total and major independents studied represent 9,6% vs. total Rkg Industry Share % 2013 Overall Activity Billings ($m) Growth rate 2013 vs ,9 GroupM / WPP ,2% 9,2 Mindshare n ,5% 8,3 MediaCom n ,1% 7,1 MEC n ,9% 3,0 Maxus n ,3% 2 22,2 Publicis (media) ,7% 12,5 Starcom SMG n ,3% 9,6 ZenithOptimedia n ,1% 3 14,6 Omnicom Media Gr ,9% 11,0 OMD n ,0% 3,5 PHD n ,9% 4 11,5 Dentsu Aegis Ntw ,3% 8,5 Carat n ,3% 2,1 Vizeum n ,3% 0,6 Dentsu Media n ,7% 5 9,5 Mediabrands ,9% 5,1 UM n ,8% 3,6 Initiative n ,6% 0,3 BPN n ,4% 6 4,7 Havas Media Gr ,1% 4,7 Havas Media n ,1% 90,4 Total Groups ,3%

19 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong June 24 th Overall activity 2013 intra group in 62countries GroupM 28% Publicis (media) 22% Omnicom OMG 15% Dentsu Aegis 12% Mediabrands 10% Havas Media Gr 5% GroupM 27,9% ; Publicis (media) 22,2% ; Omnicom 14,6%; Dentsu Aegis Ntw 11,5%; Mediabrands 9,5%; Havas Media Gr 4,7%

20 RECMA RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong June 24 th Overall Activity Billings 2013 Global ranking by OAB Growth in 62 countries Key findings Dentsu & BPN being uncompleted networks, they are not reported in the global rankings in order not to bias the analysis. Arena is included with Havas Media. No flat / negative growth for the global ranking. Ten networks out of 13 with double-digit growth. Large spread from 6,1% to 19.3% (x3). Carat and Starcom MediaVest have the highest growth with nearly 20% Eight networks between 10 and 14% growth. 3 networks below 10%. Havas Media with 6,1% lowest growth.

21 RECMA Inc New York - RECMA London RECMA SA Paris RECMA Perth RECMA Bangkok June 24th, 2014 Global rankings in 62 countries D3- OAB Growth ranking Industry perimeter includes major independents part of the survey which represent 9,6% vs. total and second brands representing 1,1% vs. total Growth rate 2013 vs Overall Activity Billings $m Industry Share % OAB change 2012 vs 13 in $m Rkg 19,3% Carat Dentsu Aegis Ntw , ,3% Starcom SMG Publicis (media) , ,9% PHD Omnicom Media Gr , ,3% Maxus GroupM , ,9% MEC GroupM , ,5% Mindshare GroupM , ,3% Vizeum Dentsu Aegis Ntw , ,8% UM Mediabrands , ,6% Initiative Mediabrands , ,0% OMD Omnicom Media Gr , ,1% MediaCom GroupM , ,1% ZenithOptimedia Publicis (media) , ,1% Havas Media , ,2% Total Networks ,

22 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; June 30 th Part 2 B- by segment Top 14 countries D4-1 Ranking by network D4-2 Ranking by 10 operational Group D4-3 Ranking by Group (scale) D4-4 Ranking by OAB growth Second-tier (48 countries) D7-1 Ranking by network D7-2 Ranking by 10 operational Group D7-3 Ranking by Group (scale) D7-4 Ranking by OAB growth Top 14 vs. Second Tier rankings Do agencies have similar rankings in the Top 14 and Second Tiers?

23 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; June 30 th Part 2 C- by criteria of performance Industry share by Group D11s Industry share by Group in 4 zones D11-1 Industry share by Group in 13 regions D11-2 Industry share by Group in the Top 14 OAB Growth by Group D12s OAB Growth by Group in 4 zones D12-1 OAB Growth by Group in 13 regions D12-2 OAB Growth by Group in the Top 14 Exposure to the USA D13-1 OAB exposure to the USA D13-2 OAB in 61 countries without the USA Overall staff growth D0-1 Overall Staff ranking by Network D0-2 Overall Staff ranking by Group

24 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; June 30 th Part 2 D- Rankings by zone & region NORTH AMERICA / USA / CANADA D14-1 North America Ranking by network D14-2 North America Ranking by 10 operational Group D14-3 North America Ranking by Group (scale) D14-4 North America Ranking by OAB growth LATIN AMERICA / MEXICO / SOUTH AMERICA D15-1 LATAM Ranking by network D15-2 LATAM Ranking by 10 operational Group D15-3 LATAM Ranking by Group (scale) D15-4 LATAM Ranking by OAB growth EMEA 1/2 D16-1 EMEA Ranking by network D16-2 EMEA Ranking by 10 operational Group D16-3 EMEA Ranking by Group (scale) D16-4 EMEA Ranking by OAB growth TOP 5 EUROPE D17-1 Top 5 Europe Ranking by network D17-2 Top 5 Europe Ranking by 10 operational Group D17-3 Top 5 Ranking by Group (scale) D17-4 Top 5 Europe Ranking by OAB growth Other Western Europe D18-1 Other West. EU Ranking by network D18-2 Other West. EU Ranking by 10 operational Group D18-3 Other West. EU Ranking by Group (scale)

25 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; June 30 th Part 2 D- Rankings by zone & region EMEA 2/2 Nordics & Baltics D19-1 Nordics & Baltics Ranking by network D19-2 Nordics & Baltics Ranking by 10 operational Group D19-3 Nordics & Baltics Europe Ranking by Group (scale) Central Europe D20-1 Central Europe Ranking by network D20-2 Central Europe Ranking by operational Group D20-3 Central Europe Ranking by Group (scale) South East Europe D21-1 South East Europe Ranking by network D21-2 South East Europe Ranking by 10 operational Group D21-3 South East Europe Ranking by Group (scale) Eastern Europe/ Russia D22-1 Eastern Europe Ranking by network D22-2 Eastern Europe Ranking by 10 operational Group D22-3 Eastern Europe Ranking by Group (scale) Middle East and Africa D23-1 Middle East & Africa Ranking by network D23-2 Middle East & Africa Ranking by 10 operational Gr D23-3 Middle East & Africa Ranking by Group (scale)

26 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; June 30 th Part 2 D- Rankings by zone & region ASIA PACIFIC D24-1 APAC Ranking by network D24-2 APAC Ranking by operational Group D24-3 APAC Ranking by Group (scale) D24-4 APAC Ranking by OAB growth South Asia / India D25-1 South Asia / India Ranking by operational Group D25-2 South Asia / India Ranking by network D25-3 South Asia / India Ranking by Group (scale) South East Asia D26-1 South East Asia Ranking by network D26-2 South East Asia Ranking by operational Group D26-3 South East Asia Ranking by Group (scale) D26-4 South East Asia Ranking by OAB growth North Asia D27-1 North Asia Ranking by network D27-2 North Asia Ranking by operational Group D27-3 North Asia Ranking by Group (scale) D27-4 North Asia Ranking by OAB growth Pacific D28-1 Pacific Ranking by network D28-2 Pacific Ranking by operational Group D28-3 Pacific Ranking by Group (scale)

27 RECMA Inc New York RECMA SA Paris- London- Manila- Hong Kong; July Ann Part FOUR Rankings by Country

28 RECMA Inc New York RECMA London RECMA SA Paris RECMA Perth RECMA Bangkok July 2nd, 2014 Cp T0-53-Malaysia Structure of the industry RECMA defines an agency brand as a local agency having its own identity, management team, client list and services offerings. Owner groups / media branch Networks Local agency brands Sub-brands (in traditional media) Maxus Maxus - WPP / GroupM MediaCom MediaCom - MEC MEC - Mindshare Mindshare - Publicis / Publicis Omnicom / Omnicom Media Group Starcom MediaVest SMG Starcom + MediaVest Starcom Mediavest ZenithOptimedia Optimedia - Zenith (1) - OMD OMD - PHD PHD - Carat Carat - Dentsu Inc / Dentsu Aegis Vizeum Vizeum - Dentsu Media Dentsu Media (est April 2012) - Interpublic (IPG) / Mediabrands Initiative UM Universal UM (including Initiative) Initiative UM BPN (not established) - Havas / Havas Media Havas Media Trapper-Havas Arena (not established) - partner of Havas INDEPENDENTS / NON-PART OF THE NETWORKS STW Group partner of Havas Media Trapper Havas - (1) Since February 2014 Zenith Malaysia is no longer affiliated to Publicis but fully owned by Publicis just like Optimedia

29 RECMA Inc New York - RECMA London RECMA SA Paris RECMA Perth RECMA Bangkok - anne@recma.com - June18,th 2014 T0b- 53-Malaysia Methodology & definitions Overall Activity vs. Buying billings Traditional vs. Non traditional media (Specialized Resources) Industry shares vs. adspends Networks vs. independents Independents Affiliated vs. Partners Agency brand vs. sub-agency or units Ratio Overall Activity/ Staff Overall Activity is now the unique metric retained by RECMA for ranking media agencies. It includes buying & planning billings as well as three other categories of services : 1- Digital services (six segments from display to web production); 2- Diversified Services (Branded Content/ Events/ Sponsoring/ Sports marketing; Local/ retail / multi-cultural/ Econometrics/ ad hoc research; Marketing consulting/ Bartering etc); 3- International Account Coordination. Therefore Overall Activity (OA) volume is larger than Billings which represents from 90% to 50% of a media agency OA. Traditional media cover TV, radio, posters, newspapers and magazines. These advertising placements are measured by research companies as well as internet display partly. These ad spend figures are defined by RECMA as "Buying billings". They are adjusted for balancing each country weight, following international references (ZO Forecasts, etc). In addition RECMA adds Diversification in order to measure the whole of the agency activities. Hence the concept of Overall Activity volume. Adspends are the data produced by research companies when they monitor traditional billings. Industry shares are data established by RECMA through the calculation of Overall Activities managed by the six Groups of media networks (not counting independents). RECMA evaluates 15 networks part of the six major international Communication and Marketing services Groups. About one hundred of independent media agencies are also studied and evaluated by RECMA. Globally their share is less than 10% of the six Groups. A local agency is considered as Partner of Media Network/Group if the Network has a 51% majority share of ownership. In this case the Partner agency should follow the rules and processes of the International Network. When the Media Network/Group has either no equity capital link or a minority share of ownership with the local agency, the local agency is considered as Affiliated and therefore Independent from the Network. RECMA defines a media agency brand at a local level, by country, as having its own identity reported in corporate press releases or articles, website, client list, manager and participating to pitches as a stand-alone agency. Several brands can be part of a same network in one country. Are defined as sub-agency the second brands integrated to the major agency organization often for managing client conflicts but without any pitch activity or corporate identity. Are considered as internal branded unit those fully dedicated to a single client - Fulcrum (Unilever India), Primus (J&J Europe ) or other brands integrated in the agency (for example in Germany : 4 regional brands part of OMD and two brands part of Vizeum). The ratio Overall Activity per head (staff) is reported for each brand, in table 1. This ratio is a country indicator of the maturity of the industry as well as an index of productivity & activity per head. The variance of this agency index within the same country is generally correlated with agency size or with client profile (exemple: agencies with big FMCG clients such as P&G/ Unilever use to have higher ratio) Country adjustment deflators applied to Buying billings In order to balance countries weights in the RECMA global reports a deflator is applied, leading to buying billings GROSS ADJUSTED. They are not average discount rates. Country methodology Sources & process 1/ RECMA has established client lists to estimate their Buying amount. Advertisers budgets are based on declared and validated GROSS ad-monitoring amounts adjusted after deflators (see below). 2/ RECMA has also asked the agencies to declare their Staff number, Overall activity growth rate and Non Traditional activity share. 3/ Using historical data, previous years declarations as well as Specialized Resources staff structure, the declared Non traditional share have been revised to estimate Non traditional billings amount. 4/ Based on buying & non traditional activity evolution and agencies declarations, RECMA has estimated the final Overall Activity growth rate. RESTATES: few restates for consistency. Country adjustment deflator applied to Buying billings Currency exchange rate A -40% coefficient has been applied to Unilever A -20% coefficient has been applied on all other advertisers in US$m

30 Industry shares 2013 RECMA Overall Activity Rankings 2013 June 2014 RECMA Inc New York - RECMA London RECMA SA Paris RECMA Perth RECMA Bangkok - anne@recma.com - June 2nd, 2014 Table 1-53-Malaysia Overall Activity 2013 by local agency brand R A N K Agency brands part of the networks / Media branches Independents / non-part of the networks (A) (B) (C) (D&E) (F= A/D) Growth OVERALL OVERALL rate Ratio OA/ Activity Activity 13/12 STAFF Staff % 2013 rounded rounded rounded 2013 USD Mo USD Mo ,5% Mindshare / GroupM % ,5 2 13,7% UM incl. Initiative / Mediabrands % ,9 3 9,8% Starcom + Mediavest / Publicis % ,5 4 8,7% MediaCom / GroupM % ,0 5= 8,4% OMD / OMG % ,7 5= 8,3% Carat / Dentsu Aegis % ,4 7 7,2% Maxus / GroupM % ,9 8 6,1% Vizeum / Dentsu Aegis % ,1 9 5,8% Zenith Media (bought by ZO since Jan 2014) % ,6 10 5,0% MEC / GroupM % ,9 11 2,2% Trapper - PARTNER of Havas % ,1 12 1,6% PHD / OMG % ,9 13 1,4% Optimedia / Publicis % ,2-100% Total 13 brands Media agency industry according to RECMA % ,2 For detailed explanation per agency see T3 1- Malaysia (media agency industry billings) growth rate 2013 vs 2012 of +17% to be compared to 2012 vs 2011 = +13% 2- Malaysia (media agency industry staff ) growth rate 2013 vs 2012 of +11% to be compared to 2012 vs 2011 = +19% 3- Growth 2013 vs 2012 in billings (+17%) higher than staff growth (+11%) 4- Ratio billlings/ Staff 2,2 in 2013 versus 2,1 in 2012 = almost equal 5- overall billings 2012 of $m restated to $m Ratio Billings / staff by agency 2,2. Lowest Trapper 1,1 to highest Maxus 3,9. 7- Growth rates see Table 3 : significant gaps between agencies (from 0% to 40%) to be compared as well to the size of the agencies. 8- Structure of billings between buying billings and digital/ diversified services : see Table3.

31 Industry shares 2013 Industry shares 2013 RECMA Overall Activity Rankings 2013 June 2014 RECMA Inc New York - RECMA London RECMA SA Paris RECMA Perth RECMA Bangkok - anne@recma.com - June 2nd, 2014 Table 2-53-Malaysia Overall Activity 2013 by Network and Group of Networks R A N K Media Networks incl. agency brands & other media entities (A) (B) (C) (D&E) (F= A/D) OVERALL Activity 2013 rounded OVERALL Activity 2012 rounded Growth rate 13/12 % rounded STAFF 2013 USD Mo USD Mo ,5% Mindshare / GroupM % ,5 2 13,7% UM (incl Initiative) / MediaBrands % ,9 3 9,8% Starcom MediaVest SMG / Publicis % ,5 4 8,7% MediaCom / GroupM % ,0 5= 8,4% OMD / OMG % ,7 5= 8,3% Carat / Dentsu Aegis % ,4 7 7,2% ZenithOptimedia / Publicis % ,5 8 7,2% Maxus / GroupM % ,9 9 6,1% Vizeum / Dentsu Aegis % ,1 10 5,0% MEC / GroupM % ,9 11 2,2% Havas Media / Havas % ,1 12 1,6% PHD / OMG % ,9-100% Total Networks studied by RECMA % ,2 Ratio OA/ Staff 2013 R A N K Media Branches (Group of Networks) (A) (B) (C) (D&E) (F= A/D) Growth OVERALL OVERALL Ratio rate Activity Activity OA/ 13/12 STAFF Staff % rounded rounded 2013 rounded 2013 USD Mo USD Mo % GroupM % ,8 2 17% Publicis % ,9 3 14% Dentsu Aegis % ,7 4 14% Mediabrands % ,9 5 10% Omnicom Media Group % ,5 6 2% Havas % ,1-100% Total Groups studied by RECMA % ,2