<PAGE>
Filed by Havas Advertising
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Snyder Communications
Commission File No.: 333-43362
The following are materials prepared by Havas Advertising for a conference call
with investors and analysts on August 10, 2000. INFORMATION CONCERNING THE
PARTICIPANTS IN THE PROXY SOLICITATION IS SET FORTH IN THE REGISTRATION
STATEMENT ON FORM F-4 OF HAVAS ADVERTISING ON FILE WITH THE SEC (COMMISSION FILE
NO. 333-43362). INVESTORS WILL BE ABLE TO OBTAIN THE DOCUMENTS FREE OF CHARGE AT
THE SEC'S WEB SITE, WWW.SEC.GOV.
[LOGO OF HAVAS ADVERTISING]
Conference Call
August 10, 2000
<PAGE>
Safe Harbor Statement
"FORWARD LOOKING INFORMATION
This document contains certain "forward-looking statements" about the proposed
merger of Havas Advertising and Snyder Communications. These include statements
regarding the anticipated closing date of the transaction, anticipated tax
consequences, and anticipated future operating results. Forward-looking
statements can be identified by the fact that they do not relate strictly to
historical or current facts. They often include words like "believe," "expect,"
"anticipate," "estimated," "pro forma," and "intend" or future conditional verbs
such as "will," "would," or "may." Certain factors that could cause actual
results to differ materially from expected results include delays in completing
the merger, difficulties in integrating the Snyder Communications companies with
the Havas Advertising divisions, and changes in general economic conditions that
may adversely affect the businesses in which Havas Advertising and Snyder
Communications are engaged and changes in the securities markets.
ADDITIONAL INFORMATION
Havas Advertising and Snyder Communications have filed a proxy
statement/prospectus and other relevant documents concerning the merger with the
Securities and Exchange Commission (SEC). WE URGE INVESTORS TO READ THE PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE
THEY CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain the
documents free of charge at the SEC's web site, www.sec.gov. In addition,
documents filed with the SEC by Havas Advertising will be available free of
charge from its Secretaire General, at 84, rue de Villiers, 92683
Levallois-Perret Cedex, France, 33-1-41 34 30 00. Documents filed with the SEC
by Snyder Communications will be available free of charge from its Corporate
Secretary at 6903 Rockledge Drive, Bethesda, Maryland 20817, 301-571-6265.
INVESTORS SHOULD READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY BEFORE MAKING ANY
VOTING OR INVESTMENT DECISIONS.
Snyder Communications and its directors, executive officers and certain other
members of Snyder Communications management and employees may be soliciting
proxies from Snyder Communications shareholders in favor of the merger.
Information concerning the participants in the proxy solicitation is set forth
in the Registration Statement on Form F-4 of Havas Advertising on file with the
SEC (Commission File No. 333-43362. Investors will be able to obtain these
documents free of charge at the SEC's web site, www.sec.gov.
FINANCIAL ACCOUNTING STANDARDS
All financial information given in this presentation concerning Havas
Advertising is presented according to French Generally Accepted Accounting
Standards, or estimations based on internal management accounts."
2
<PAGE>
Agenda
--------------------------------------------------------------------------------
1. Strategy and Organization
o Overview
o Havas Advertising in 1999
o The New Havas Advertising
- Snyder Acquisition
- Strategy
- Financial Analysis and Status Update
o The New Organization Division by Division
o Havas Advertising Objectives for 2000
2. Havas Advertising 1st Half 2000
o Gross Income
o New Business
o Acquisitions
3. French and US Filings
o Merger Process
o Financial Highlights
o Legal Structure and Topics
o Pro forma Income Statement for the Combined Group
o Number of Shares Issues
o Accounting Treatment and Adjustments
o Resulting Shareholder Structure
o Investment Highlights
3
<PAGE>
[NUMBER 1 ENCLOSED IN LOGO]
Strategy & Organization
<PAGE>
Havas Advertising
Investment Highlights
--------------------------------------------------------------------------------
o Creating the world's 4th largest communications group*
o Optimizing geographic footprint/product mix
o Balance and richness of client base
o Successful execution/integration of acquisitions
o Strong financial position to fund growth
o Management stability and depth to support global growth and
expansion
----------
*Pro forma estimated 1999 Gross Income including Snyder, source Advertising Age
April 2000
5
<PAGE>
[LOGO OF HAVAS ADVERTISING]
HAVAS ADVERTISING
Alain de Pouzilhac
Jacques Herail
EURO RSCG C CAMPUS MEDIA PLANNING diversified agencies
WORLDWIDE GROUP
Bob Schmettarer Ed Eskandarian* Fernando Rodes Jean-Michel Carlo
New York Boston* Madrid Paris
Europe USA Europe Europe
North America Europe North America North America
APAC LATAM LATAM
LATAM
A decentralized and multicultural company
----------
*After Closing
6
<PAGE>
Havas Advertising in 1999
<PAGE>
1999: An Outstanding Year
--------------------------------------------------------------------------------
Gross Income +38,2%
EBIT +50,9%
EBIT/GI 12,5%
NI bef. Extraord, & GW(1) +37,7%
Fully diluted EPS +17,5%
Dividend +15,4%
----------
(1) Group share
8
<PAGE>
1999: Productivity Ratios
--------------------------------------------------------------------------------
(% of GI) 1998 1999
--------- ------ ------
Personnel expenses 57,3% 56,6%
Other expenses 30,8% 30,8%
Exceptional items 0,5% 0,2%
EBITDA 14,7% 15,9%
EBIT 11,4% 12,5%
Nb. Of employees(1) 8 451 11 967
----------
(1) Average FTE
9
<PAGE>
1999: Industry Comparisons
--------------------------------------------------------------------------------
Gross Income Growth
99/98 EBIT
-------------------- Growth EBIT/GI
Organic Total 99/98 99
------- ----- ----- --
OMNICOM NA 20% 28,8% 14,1%
INTERPUBLIC 9% 14,9% 16,9% 16,4%
WPP 8% 13,3% 19,0% 13,4%
Y&R 10,4% 12,8% 28,4% 12,1%
HAVAS ADVERTISING 12,7% 38,2% 50,9% 12,5%
Sources: company data and Broker estimates
10
<PAGE>
1999: Strong New Business Growth
--------------------------------------------------------------------------------
Principal New Clients
o EURO RSCG Worldwide:
Air France*, Telefonica*, Novartis*, Parke Davis*, Hallmark, Midas,
GlaxoWellcome (3 wins), Alberto Culver, Budget Rental Car,
Santander Financial
o CAMPUS:
Alcatel*, Dreamcast
o MEDIA PLANNING GROUP:
Airtel*, One Tel*, Retevision*, Bayer, Carrefour Continent
o DIVERSIFIED AGENCIES GROUP:
Liberty Surf, Virgin Net, Virgin Atlantic, Sky TV
----------
* Global/Multinational
11
<PAGE>
1999: Strong New Business Growth
--------------------------------------------------------------------------------
Major Dot Com Wins
o ask.com, jcrew.com, intel.com, BOL.com, latribune.fr, excite.com.au,
nomad.fr, fimatex.fr, wineplanet.com.au, alladvantage.com, Rocket ebook,
lipitor.com, doubleclick.com, brandwise.com, cadeau.fr, empleo.com,
metrocuadrado.com, worldlyinvestor.com, to2.com, jaldi.com, crisil.com,
planet1.com, infoeuro.com, quest4law.com, Go4i.com, zipahead.com,
bidorbuy.com, Zdnet.com, Xcommerce.com, styleNet.com, peugeotbank.de,
citroenbank.de, Berlin.de, xerix.com, amazon.co.uk, AVL.com, cahoot.com
12
<PAGE>
1999 Acquisition Track Record
--------------------------------------------------------------------------------
[BAR GRAPH WITH ARROW]
1998 20
1999 88
Number of companies acquired
Key Growth Driver
13
<PAGE>
1999: Dynamic External Growth
--------------------------------------------------------------------------------
o 88 companies acquired
o (Euro) 225 M additional Gross Income
o (Euro) 290 M on a pro forma full year basis
o For a total investment of (Euro) 269 M
14
<PAGE>
1999: Dynamic External Growth (Gross Income)
--------------------------------------------------------------------------------
o Divisional Breakdown of Acquisitions(1)
EURO RSCG 48%
CAMPUS 4%
MPG 25%
DAG 23%
o Regional Breakdown of Acquisitions(1)
EUROPE 62%
USA 23%
APAC 4%
LATAM 10%
o Breakdown of Acquisitions by Activity(1)
Traditional Advertising 27%
Marketing Services 73%
----------
(1) Estimated on a Full Year Basis, including MPG transaction
15
<PAGE>
1999: Growth by Business Activity
--------------------------------------------------------------------------------
Gross Income(1)
-------------------
Traditional Advertising: + 14,9%
-------------------
Marketing Services + 51,6%
-------------------
Public Relations: + 101,1%
-------------------
Healthcare: + 73,3%
-------------------
Media: + 75,9%
-------------------
----------
(1) Estimated contribution to 1999 Gross Income
16
<PAGE>
1999 Growth by Region:
--------------------------------------------------------------------------------
Gross Income(1)
------------------------------
Like For
Like Basis Total
------------------------------
TOTAL +12,7% +38,2%
USA +13,4% +39,1%
Europe +10,5% +34,6%
of which France +10,9% + 8,1%
Great Britain +17,7% +49,4%
Asia/Pacific +14,0% +48,1%
Latin America +45,4% +78,0%
------------------------------
----------
(1) Estimations based on management accounts
17
<PAGE>
THE NEW HAVAS ADVERTISING
<PAGE>
The New Havas Advertising* - Scale
--------------------------------------------------------------------------------
o Top tier global communications company
o Decentralized, multicultural strategy
o Expanded interactive leadership
o 4 divisions, > 250 agencies, approx. 20,000 staff
members, 75 countries
----------
* Pro forma estimates including Snyder
19
<PAGE>
The New Havas Advertising* - Growth Targets
--------------------------------------------------------------------------------
o (Euro) 2.2 billion in gross income
o 50% of gross income from client categories growing at double industry rate
o Gross income 45% from US
o Gross income 60% from marketing services
o EBIT margin to reach 15% by 2001
----------
* Pro forma including Snyder
20
<PAGE>
Snyder Acquisition
--------------------------------------------------------------------------------
o In February, 2000 Havas Advertising announced its agreement to acquire
Snyder Communications
[Snyder Communications Logo]
[Arnold Logo] [Bounty SCA Worldwide Logo] [Circle.com Logo] [Brann Logo]
21
<PAGE>
Snyder Acquisition - A Perfect Strategic Fit
--------------------------------------------------------------------------------
o Enhanced richness by division
o Expanded US presence
o Mix shift to faster growth/higher margin businesses(1)
o Immediately accretive
o Client conflicts avoided
o Senior management continuity
----------
(1) Based on industry estimates
22
<PAGE>
Exceeding Strategic Growth Objectives Ahead of Plan
--------------------------------------------------------------------------------
o Top 5 ranking worldwide
o 1998 Gross Income doubled to (Euro) 2 billion
o 56+% Marketing Services
o 80+% outside of France
o 40+% in the US ALL EXCEEDED
o Major Interactive force
o 40+% of client base in most dynamic growth sectors
o EBIT margin expansion to 14% by 2001
23
<PAGE>
<TABLE>
<CAPTION>
Advertising Communications Group Ranking
---------------------------------------------------------------------------------------------------------
Gross Income 1999 in million $ billion $
<S> <C> <C>
1. WPP Ogilvy & Mather/J. Walter Thompson/Young & Rubicam [USA Flag Icon][UK Flag Icon] 6.68
2. Omnicom BBDO/DDB/TBWA/Ketchum [USA Flag Icon] 5.74
3. Interpublic McCann/Lintas + Lowe [USA Flag Icon] 5.07
4. Havas Advertising Euro RSCG Worldwide/Campus/DAG/MPG [France Flag Icon] 2.38
5. Publicis FCB/Bozell/Saatchi & Saatchi [France Flag Icon] 2.16
6. Dentsu [Japan Flag Icon] 2.10
7. B Com 3 Leo Burnett/DMB&B [USA Flag Icon] 1.93
8. Grey Advertising [USA Flag Icon] 1.57
9. True North Com [USA Flag Icon] 1.48
10. Cordiant Lighthouse [UK Flag Icon] 0.87
11. Hakuhodo [Japan Flag Icon] 0.82
12. TMP Worldwide [USA Flag Icon] 0.51
</TABLE>
----------
Source: 2000 Ad Age, 1999 GI
* Pro Forma estimates include Snyder.
24
<PAGE>
[LOGO OF HAVAS ADVERTISING]
HAVAS ADVERTISING
Bob Schmetterer Ed Eskandarian Fernando Rodes Jean-Michel Carlo
Euro RSCG Worldwide C Campus Media Planning diversified agencies
Group
New York Boston Madrid Paris
Bounty SCA will Arnold will The media for Brann & circle.com
add great Marketing reinforce Campus Arnold will will become the
Services strength and become the reinforce Media leading companies
to Euro RSCG lead agency of Planning USA in the USA for the
Worldwide Overall the Second Diversified
Euro RSCG Marketing Network Agencies Group
Services will now
rank #2 Worldwide.
[Bounty Logo] [Arnold Logo] [Arnold Logo] [circle.com Logo]
[Brann Logo]
A decentralized and multicultural company
25
<PAGE>
Balanced and Rich Client Base . . .
Without Divisional Conflict
--------------------------------------------------------------------------------
[Box Containing Various Company Logos] Havas Advertising clients
Snyder Communications clients [Box Containing Various Company Logos]
26
<PAGE>
Major Share of Most Dynamic Client Categories
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
TELECOM FINANCIAL SERVICES HIGH-TECH MEDIA / NEW MEDIA HEALTHCARE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cegetel Abbey National Alcatel Amazon.com American Home Products
France Telecom American Express Dell BMG Entertainment Bayer
Lucent Barclays Intel Canal + Bristol Myers Squibb
Worldcom BNP Microsoft CNN.com GlaxoWellcome
Telefonica First US Bank Phillips The Independent Novartis
Vodafone JP Morgan Storage Tek Tom.com Parke Davis
-------------- KPMG ------------ Universal Studios Pfizer
AT&T Nasdaq AMEX AOL.com ------------------ Rhone Poulenc
Bell Atlantic Oppenheimer IBM Columbia House Schering Plough
British Telecom Prudential Motorola Disney Smithkline Beecham
GTE The Hartford Myway.com Ws;.com ---------------------
InfoSpeed Wells Fargo Sony Merck
Sprint ---------------- Yahoo! Pharmacia Upjohn
Bank of America Roche
E trade
First National
Fleet
US Bancorp
-------------------------------------------------------------------------------------------------
</TABLE>
Havas Advertising Clients
Snyder Clients
27
<PAGE>
Greater Divisional Balance in Gross
Income(1)
--------------------------------------------------------------------------------
[Pie Chart]
Havas Advertising
1999
Euro RSGG Worldwide 66%
Three other divisions 34%
Diversified Agencies Group
Media Planning Group
Campus
[Pie Chart]
Havas Advertising + Snyder
2000
Euro RSGG Worldwide 52%
Three other divisions 48%
Diversified Agencies Group
Media Planning Group
Campus
----------
(1) Pro forma estimates
28
<PAGE>
Greater Geographic Balance(1)
--------------------------------------------------------------------------------
[Pie Chart]
Havas Advertising
1999
France 24%
LATAM 5%
APAC 5%
USA 31%
Europe 35%
[Pie Chart]
Havas Advertising + Snyder
2000
France 16%
LATAM 3%
APAC 3%
USA 45%
Europe 33%
----------
(1) Pro forma estimates
29
<PAGE>
More Attractive Product Mix(1)
--------------------------------------------------------------------------------
[Pie Chart]
Havas Advertising
1999
Marketing Services 45%
Advertising 55%
[Pie Chart]
Havas Advertising + Snyder
2000
Marketing Services 60%
Advertising 40%
----------
(1) Pro forma estimates
30
<PAGE>
Marketing Services Leadership
--------------------------------------------------------------------------------
[BAR CHART]
Ranked by 1999 Gross Income
--------------------------------------------------------------------------------
Millions $
--------------------------------------------------------------------------------
Brann Worldwide 479
--------------------------------------------------------------------------------
The Sales Machine Euro RSCG 367
--------------------------------------------------------------------------------
OgilvyOne Worldwide 318
--------------------------------------------------------------------------------
Draft Worldwide 314
--------------------------------------------------------------------------------
Rapp Collins Worldwide 312
--------------------------------------------------------------------------------
Impiric 311
--------------------------------------------------------------------------------
Digitas 187
--------------------------------------------------------------------------------
Carlson Marketing Group 184
--------------------------------------------------------------------------------
Grey Direct Marketing Group 135
--------------------------------------------------------------------------------
McCann Relationship Marketing 122
--------------------------------------------------------------------------------
Source: DMA May 2000
31
<PAGE>
Interactive Leadership
--------------------------------------------------------------------------------
o Well-positioned in fastest growing segment
[circle.com logo] [Euro RSCG Interaction logo] [Connectworld logo]
o Euro RSCG ranked #1 interactive network among global advertising
companies*
o Solid interactive platform across all four operating divisions supporting
a strong international client base
o Circle.com adds significant on-line advertising strengths
----------
* 2000 Adweek Survey, based on 1999 projected revenues
32
<PAGE>
Strengthened Top Management Talent
--------------------------------------------------------------------------------
o Four new outstanding CEO's committed to continue
o Ed Eskandarian ARNOLD
o Dennis Eastham BRANN
o Steven Kaplan BOUNTY
o Bob Wilke CIRCLE.COM
o Forty new senior managers
33
<PAGE>
Strong Growth and Profitability Targets
--------------------------------------------------------------------------------
o Targeted growth for each of the 3 Snyder divisions = 15 to 20% per year
(organic)
o Targeted profitability around 15% (EBITA / GI)
o Strengthening of the interactive capabilities with Circle.com
- Tracking stock
- Voting control by Havas Advertising
- 17% retained interest
- 50% annual growth
- EBITDA breakeven targeted for 1Q2001
34
<PAGE>
The [New] Organization: Division by Division
--------------------------------------------------------------------------------
[Havas Advertising Logo]
HAVAS ADVERTISING
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
[Euro RSCG Worldwide [C Campus logo] [Media Planning Group [diversified agencies logo]
logo] logo]
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York Boston Madrid Paris
-----------------------------------------------------------------------------------------------
Europe USA Europe Europe
North America APAC Europe North America North America
LATAM LATAM LATAM
-----------------------------------------------------------------------------------------------
[Bounty Worldwide logo] [Arnold logo] [Arnold Media logo] [Circle.com logo]
[Brann logo]
-----------------------------------------------------------------------------------------------
</TABLE>
A decentralized and multicultural company
35
<PAGE>
2000 Objectives
<PAGE>
2000 Objectives
--------------------------------------------------------------------------------
- Pro forma Gross Income Growth > 20%
- Pro Forma Organic Growth > 10%
- EBIT/GI to reach 15% during the second half of 2001
37
<PAGE>
[NUMBER 2 ENCLOSED IN LOGO]
Havas Advertising 1st Half 2000
<PAGE>
H1 2000: Growth
--------------------------------------------------------------------------------
Gross Income
- Unadjusted: + 38,8%
- Constant Scope: + 20,6%
- Constant Scope and Currency: + 12,9%
39
<PAGE>
H1 2000: Strong New Business
--------------------------------------------------------------------------------
Net New Business(1) Billings
million (Euro)
Euro RSCG World 631
Campus 93
Media Planning Group 409
Diversified Agencies Group 205
TOTAL 1,338
----------
(1) Management Estimates
40
<PAGE>
H1 2000: Continued Acquisition Growth
--------------------------------------------------------------------------------
o 19 Companies acquired:
- Consulting (Meridian - US)
- Interactive (Tyee - US)
- Marketing Services (Integrated Options - Australia)
- Corporate Relations (Middleberg and Kratz & Jensen - US)
- Sports Marketing (ISL - France)
41
<PAGE>
[NUMBER 3 ENCLOSED IN LOGO]
French & US Filings
<PAGE>
Merger Process
--------------------------------------------------------------------------------
o Antitrust filings (US and Europe) cleared
o 20 for 1 stock split to prepare for ADR
o On track for late September closing
o Parallel filings with COB and SEC in process:
France | COB filing of | HA
| preliminary | EGM
| prospectus | | BOARD
-------------------------------------------> Closing late
| F-4 draft | F-4 | Snyder September
USA | made public | effectiveness order | EGM
| | |
| |
| |
August 9, 2000 | [20 trading days |
| inside a |
| double-sided hollow |
| arrow] |
43
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
o Valued at $29.50 per share: $2.1bn in total
o Paid in Havas Advertising ADR's to be listed on the Nasdaq National
Market
o Protective collar mechanism
o Shareholder lock-up
o Pooling of interests accounting method under French GAAP (no
additional goodwill on the transaction)
o Striving for synergies resulting in top line growth and cost savings
44
<PAGE>
Legal Structure
--------------------------------------------------------------------------------
[Diagram of Legal Structure Before] [Diagram of Legal Structure After]
45
<PAGE>
Legal Topics
--------------------------------------------------------------------------------
o > 50% shareholder approval required for Snyder
o 66.7% approval required from voting shareholders for Havas
Advertising
o Structured to be a tax free deal for Snyder shareholders
46
<PAGE>
1999 Proforma Income Statement - French GAAP
--------------------------------------------------------------------------------
(Euro) million
Havas advertising SNC Proforma
----------------- --- --------
Gross Income 1208 565 1773
EBIT 151 84
% EBIT/GI 12.5% 14.8% 235
Net Income 56 16 72
--------------------------------------------------------------------------------
47
<PAGE>
Number of Shares Issued
--------------------------------------------------------------------------------
Number of shares information presented in French prospectus vs. US F-4
Registration Statement pro forma 1999 accounts(1)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
SNC Pro forma nb. of Maximum nb. of Havas
Shares & Havas Advertising Advertising ADS Issued in
31st July 2000 Options ADS Issued(2) French prospectus(3)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares Outstanding 72 337 423 91 984 267 102 386 389
Options
- vested 3 066 775 - 4 340 713
- unvested 5 203 325 - 7 366 786
- unallocated 190 000 - 268 926
- cashed out 3 302 985 Cashed out 4 675 045
-------------------------------------------------------------------------------------------------------
Total 84 100 508 91 984 267 119 037 859
-------------------------------------------------------------------------------------------------------
</TABLE>
----------
(1) Calculated as if closing had occurred on 1st August 2000
(2) 20-day Havas Advertising average (Euro) 24.71 ($23.20), 20-day $/(Euro)
exchange rate 0.9394
(3) 20-day $/(Euro) exchange rate 0.8455
48
<PAGE>
Number of Shares Issued
--------------------------------------------------------------------------------
Number of shares to be used for calculating EPS 2000
New shares ((Euro),4)
(Numbers in Millions. Unaudited)
--------------------------------------------------------------------------------
1st Half Estimated Full Year 2000
--------------------------------------------------------------------------------
Havas Havas Issued for Proforma
Advertising Advertising SNC HA + SNC
--------------------------------------------------------------------------------
Outstanding at 31/12/99 145,9
Outstanding at 30/06/00 155,1
Basic 150,0 152,6 92,0 244,5
Fully Diluted(1) 180,1 180,3 97,0 277,3
----------
(1) Assuming application of the Treasury Stock Method, taking actual quarterly
share prices for first half and assuming (Euro) 25 in Q3 and (Euro) 25.5
in Q4.
49
<PAGE>
Accounting Treatment
--------------------------------------------------------------------------------
o Havas Advertising measures its financial performance in French GAAP
and will continue to report and communicate accordingly.
o For the listing of ADRs on the US market, Havas Advertising will
file accounts in full US GAAP with the SEC.
50
<PAGE>
Key Reconciliation Themes
(US/French GAAP)
--------------------------------------------------------------------------------
Accounting Adjustments
Impact on 1999 Pro Forma accounts when translated into US GAAP:
<TABLE>
<CAPTION>
(Euro) million Gross Income Net Income
--------------------------------------------------------------------------------------------------
<S> <C> <C>
1. Purchase Accounting in US GAAP vs Pooling in French - (52.2)
2. New Accounting Treatment on Stock Options in acquired companies - (24.0)
3. Accounting for Media Planning Group (130) -
4. Acquisition Earn-Out/Buy-Out payments - (16.9)
5. Technical differences, some of which are expected to diminish
as a result of convergence in accounting principles:
- Deferred tax recognition - (1.7)
- Stock option accounting - (3.3)
- Others (1) (8.9)
6. Circle.com 33 -
</TABLE>
51
<PAGE>
Accounting Adjustments
--------------------------------------------------------------------------------
1. Purchase Accounting in US GAAP vs Pooling in French
Gross Income -
Net Income (52.2)
Due to recent changes in French Generally Accepted Accounting Practices
(French GAAP), the Pooling of Interests method may be adopted where at
least 90% of a business is acquired in exchange for payment stock.
Consequently, under French GAAP, no additional Goodwill will be recognised
for the acquisition of Snyder Communications.
Under US GAAP, the acquisition must be accounted for using the Purchase
Accounting method. As of August 1, 2000, this implied the creation of
approximately $2.2bn of goodwill, amortized over 40 years.
(Euro) million
52
<PAGE>
Accounting Adjustments
--------------------------------------------------------------------------------
2. New Accounting Treatment on Stock Options in acquired companies
Gross Income -
Net Income (24.0)
For acquisitions occurring since July 1, 2000, a recent US GAAP accounting
change requires that the accumulated intrinsic value of outstanding
unvested options at the time of the acquisition be amortized over the
vesting life, both retrospectively to the data of allocation and beyond, up
until the full vesting of such options.
(Euro) million
53
<PAGE>
Accounting Adjustments
--------------------------------------------------------------------------------
3. Accounting for Media Planning Group
Gross Income (130)
Net Income -
Due to the fact that Havas Advertising owns 45% and has a majority on the
board of Media Planning Group (and is therefore able to exert management
control), French GAAP allows Havas Advertising to fully consolidate this
subsidiary in its accounts, with the corresponding recognition of a 55%
minority interest.
In US GAAP, a minority interest may not exceed 50%. Media Planning Group is
therefore not consolidated, resulting in the elimination of the
corresponding Gross Income and other P&L items down to and including the
minority interest. The 45% share of Media Planning Group's net income which
is attributable to Havas Advertising is represented as an equity from
affiliates item.
(Euro) million
54
<PAGE>
Accounting Adjustments
--------------------------------------------------------------------------------
4. Acquisition Earn-Out / Buy-Out payments
Gross Income -
Net Income (16.9)
Agreements entered into by Havas Advertising which provide for the
acquisition of other companies typically have included "earn out" and "buy
out" clauses, under which a portion of the acquisition price is paid out
over time based on the financial performance of the acquired business.
Under US GAAP, the portion of an earn out or buy out payment deemed to be
conditioned upon the continued employment of the seller must be accrued as
a compensation expense over the term of the earn out or buy out clause.
Under French GAAP, earn out and buy out payments were accounted for by
Havas Advertising as goodwill resulting from the purchase price.
Consequently, under US GAAP, the cost of these earn out payments was
required to be recharacterized as a compensation expense.
This difference is technical and has no impact on cash flows. In the future
Havas Advertising will attempt to negotiate acquisitions with the objective
of differentiating purchase price from compensation while linking this
price paid to actual future business performance.
(Euro) million
55
<PAGE>
Accounting Adjustments
--------------------------------------------------------------------------------
5. Technical differences, some of which are expected to diminish as a result
of convergence in accounting principles:
- Deferred tax recognition Gross Income -
Net Income (1.7)
As from January 1, 2000, the French GAAP treatment of deferred tax assets
changed. Prior to that date, Havas Advertising was able to credit the P&L
when historical tax losses were utilized. Havas Advertising has now
adopted the same method as applies under US GAAP in which the current
year's tax liability is fully accrued in the P&L.
- Stock option accounting Gross Income -
Net Income (3.3)
In the past, Havas Advertising was able to issue employee stock options at
a discount to the market share price without recognising a charge to P&L.
Beginning with the year 2000, Havas Advertising has abandoned this
practice and will issue stock options 'at the money'.
- Others Gross Income (1)
Net Income (8.9)
Differences in accounting for Treasury Stock, Convertible Bonds, etc.
(Euro) million
56
<PAGE>
Accounting Adjustments
--------------------------------------------------------------------------------
6. Circle.com
Gross Income 33
Net Income -
Under French GAAP, the 17% retained interest in Circle.com is represented
as an equity in affiliate. Under US GAAP, circle.com is fully consolidated
in the accounts of Snyder Communications, with the recognition of an 83%
minority interest.
(Euro) million
57
<PAGE>
1999 Pro forma Financial Statements
--------------------------------------------------------------------------------
Havas Advertising + Snyder Communications
(Euro) million
<TABLE>
<CAPTION>
Gross Income Net Income
------------ ----------
<S> <C> <C>
1999 Pro forma French GAAP 1773 72
1. Purchase Accounting in US GAAP vs Pooling in French - (52.2)
2. New Accounting Treatment on Stock Options in acquired companies - (24.0)
3. Accounting for Media Planning Group (130) -
4. Acquisition Earn-Out/Buy-Out payments - (16.9)
5. Technical differences, some of which are expected to diminish as a
result of convergence in accounting principles:
- Deferred tax recognition - (1.7)
- Stock option accounting - (3.3)
- Others (1) (8.9)
6. Circle.com 33 -
1999 Pro forma US GAAP 1675 (35)
Discontinued Operations (Snyder) - 11
1999 Pro forma US GAAP in F-4 1675 (24)
</TABLE>
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Resulting Shareholder Structure(1)
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% of issued shares
[Pie Chart]
Havas SA 12%
Former SNC Shareholders 36%
Treasury Stock 2%
Public and Institutional Shareholders 50%
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(1) Calculated as at 01/08/2000, on the basis of 91 984 267 ADS issued for
Snyder acquisition and 162 738 740 issued Havas Advertising shares
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Havas Advertising Investment Highlights
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o Creating the world's 4th largest communications group*
o Optimizing geographic footprint/product mix
o Balance and richness of client base
o Successful execution/integration of acquisitions
o Strong financial position to fund growth
o Management stability and depth to support global growth and
expansion
* Pro forma estimates including Snyder
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