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EXHIBIT 2.3
SUPPLEMENTAL AND AMENDMENT AGREEMENT
TO THE MERGER AGREEMENT
executed between
ADVERTISING ANTWERPEN B.V.
CANTABRO CATALANA DE INVERSIONES, S.A.
COMPANIA DE CARTERA E INVERSIONES, S.A.
DEYA, S.A.
HAVAS ADVERTISING S.A.
INVERMARO, SL
INVERSIONES Y SERVICIOS PUBLICITARIOS, S.A.
CALLE ARCOS, S.L.
22 March 1999
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Page 1.
SUPPLEMENTAL AND AMENDMENT AGREEMENT
TO THE MERGER AGREEMENT
BETWEEN:
On one hand,
DEYA, S.A., a limited liability company duly incorporated and legally existing
under the laws of Luxembourg, with registered office at 19-21 Boulevard du
Prince Henri, L-1724 Luxembourg, R.C 26285, registered with the Trade Register
in Luxembourg under number 26.285, Section B, with Tax Identification Number A-
J7500040, duly represented by Mr. Enrique Pinel Lopez, of Spanish nationality,
of legal age, and with Identification Number 2.011.846 in his capacity as
Administrator of the company specially empowered by virtue of the resolution
passed by the Board of Directors on January 19, 1999, legalized before the
Notary Public of Luxembourg Mr. Paul Bettingen, on January 25, 1999, ("Deya").
ADVERTISING ANTWERPEN B.V., a "besloten vennootschap met beperkte
aansprakelijkheid" (private company with limited liability) duly incorporated
and legally existing under the laws of The Netherlands with corporate seat in
Amsterdam, The Netherlands, and registered office at World Trade Center, Tower
B, 17/th/ floor, Strawinskylann 1725, 1077 XX Amsterdam. The Netherlands,
registered with the Trade Register in Amsterdam under number 33.250.361, duly
represented by Mr. Leopoldo Rodes Castane, of Spanish nationality, of legal age,
and with passport number 36210822 by virtue of a power of attorney granted by
the Managing Director formalized before the Notary Public Dr. Gerard Strang of
Amsterdam, The Netherlands, on January 26, 1999 ("Advertising Antwerpen").
CANTABRO CATALANA DE INVERSIONES, S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Santander (Spain), Paseo de Pereda n 9, registered with the Trade
Register in Cantabria, volume 643, folio 97, page number S-8744, second
inscription, with Tax Identification Number A-08007478, duly represented by Mr.
Francisco Gonzalez-Robatto Fernandez, of Spanish nationality, of legal age, with
Identification Number 50.792.382X, by virtue of the power of attorney granted by
the Board of Directors on January 20, 1999 and formalized before the Notary
Public of Santander Mr. Jose Maria Prada Diez on January 25, 1999, with number
193 of his protocol. ("Cantabro Catalana").
COMPANIA DE CARTERA E INVERSIONES, S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Madrid (Spain), Paseo de la Castellana 81, registered at the Trade
Register in Madrid volume 5129, 4279 of the third section, folio 24, page number
40669, with Tax Identification Number A-48027890, duly represented by Mr. Manuel
Esteve Claramun, of Spanish nationality, of legal age, and with Identification
Number 39000910-V./ Mr. Pastor Sampedro Lago, of Spanish nationality, of legal
age, and with Identification Number 14377641-L; by virtue of the power of
attorney granted by the Administrator (Administrador Solidario) and formalized
before the Notary Public of Bilbao Mr. Jose Maria Arriola Arana with number 294
of his protocol, on January 26, 1999 ("Compania de Cartera e Inversiones").
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Page 2.
CALLE ARCOS, S.L., a limited liability company duly incorporated and legally
existing under the laws of Spain, with registered office in Madrid (Spain),
calle Alberto Alcocer 10, 3B., registered with the Trade Register in Madrid,
volume 8,495, folio 8, page number M-136.882, with Tax Identification Number B-
60458163, duly represented by Mr. Fernando Rodes Vila, of Spanish nationality,
of legal age, and with Identification Number 46219948-E, by virtue of the power
of attorney granted by the Administrator (Administrador Solidario), before the
Notary Public of Barcelona, Mr. Javier Garcia Ruiz with number 1.228 of his
protocol, on March 18, 1999 ("Calle Arcos").
INVERMARO, S.L., a limited liability company duly incorporated and legally
existing under the laws of Spain, with registered office in Barcelona (Spain),
calle Doctor Fleming 17, registered with the Trade Register in Barcelona, volume
10,952, folio 99, page number B-11.967, third inscription, with Tax
Identification Number A-58846858, duly represented by Mr. Jose Martinez-Rovira
Vidal, of Spanish nationality, of legal age, and with Identification Number
37.604.987-X, by virtue of the power of attorney granted by the Sole
Administrator (Administrador Unico) on April 22, 1997 and formalized before the
Notary Public of Barcelona Mr. Amador Lopez Balina with number 2,051 of his
protocol ("Invermaro").
INVERSIONES Y SERVICIOS PUBLICITARIOS, S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Madrid (Spain), calle Alberto Alcocer n 10, Apt. 3 B, registered with
the Trade Register in Madrid, volume 8661 general, 7529 of the third section of
the Company register, folio 95, page number 82483-2, with Tax Identification
Number A-78809662, duly represented by Mr. Alfonso Rodes Vila, of Spanish
nationality, of legal age and with Identification Number 46.117.217-V; by virtue
of the power of attorney granted by the Sole Administrator (Administrador
Unico), before the Notary Public of Barcelona, Mr. Javier Garcia Ruiz with
number 1.229 of his protocol, on March 18, 1999 ("ISP").
(the "MP Shareholders").
AND
On the other hand,
HAVAS ADVERTISING S.A., a limited liability company duly incorporated and
legally existing under the laws of France, with registered office at 84, rue de
Villiers, 92683 Levallois-Perret (France), registered with the Trade Register in
Nanterre under number B335480265, duly represented by Alain de Pouzilhac, of
French nationality, of legal age and with passport number 753197031529, in his
capacity as President of the Board of Directors ("HA").
(Jointly, MP Shareholders and HA, referred to as the "Parties").
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Page 3.
WHEREAS
The Parties executed a non binding Merger Agreement on 29 November 1998 (amended
by a letter-amendment dated 22 January 1999) providing for the Parties to
combine their Media Business into one entity which would either directly or
through subsidiaries undertake in the long term all the Media Business
activities of HA Group and MP Group and jointly develop the combined entity.
NOW THEREFORE THE PARTIES HAVE HEREBY AGREED AS FOLLOWS
Definitions:
------------
Capitalized terms herein have the meaning ascribed to them in the Merger
Agreement save for the terms defined in this Agreement.
Article 1 - Focus
-----------------
HA has advised the MP Shareholders of its discussions regarding a possible
purchase of Focus in the USA.
HA undertakes to consult and obtain the prior approval of the MP Shareholders
regarding such an acquisition process between the date of this Agreement and the
Merger Date.
Article 2 - Sopec
-----------------
MP Shareholders have advised HA of the discussions regarding a possible purchase
of Sopec by Media Planning.
The MP Shareholders undertake to consult and obtain the prior approval of HA
regarding such an acquisition process between the date of this Agreement and the
Merger Date.
Article 3 - Costs of the transaction
------------------------------------
The Parties agree that the costs of external advisors related to the Merger will
not be taken into account for the purpose of EBITDA calculation under the Merger
Agreement (even if paid and/or accounted for in 1998).
The Parties undertake to cause New MP to pay (i) all external advisors costs
incurred by the MP Shareholders in connection with the Merger (the ((Media
Planning Costs ))) and (ii) costs incurred by HA in connection with the Merger
up to an amount equal to 9/11 of the Media Planning Costs. HA will bear the
costs incurred by HA in connection with the Merger above said amount.
All taxes, costs and expenses arising out of any reorganization made by HA or
the MP Shareholders pursuant to the Merger Agreement shall be paid by the
relevant party.
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Page 4.
Article 4 - SFM
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4.1 SFM earn out
As provided in Article 1.2.2(a)(viii) of the Merger Agreement, HA is in the
process of negotiating the termination of the current earn out arrangements
with SFM's senior management. However, if such negotiation is not
successfully completed on the Merger Date, the Parties undertake to cause
the New MP management to manage SFM, after the Merger Date, in the ordinary
course of business so that the basis for the earn out calculation is not
artificially modified after the Merger Date.
4.2 Commission on MVBMS' clients
SFM currently receives commissions on the total net amount of media
purchases made on behalf of MVBMS' clients (on average over the 1998 fiscal
year, at the rate of 0.90%). The parties agree that such commission is
below market standards and could be taken into account, for the sole
purpose of Article 12 below, in the 1998 SFM accounts for a proforma amount
calculated on the basis of a maximum 1.1% commission for the full 1998
fiscal year.
Article 5 - Ruling and other matters
------------------------------------
5.1 Holding Structure
The Parties agree that, due to the holding structure, the valuation of HA's
contribution under the Merger Agreement, for the sole purpose of
determining such valuations as per Article 1.4 of the Merger Agreement,
shall be increased to 4.6 million Euros.
5.2 Ruling from the French Tax Authorities
The contribution of its Media Business by HA requires an approval from the
French Tax Authorities (Service de la legislation fiscale, SLF ) in
order to be made free of capital gains tax.
The Parties agree to make their best efforts to obtain the required
approvals from the SLF before 15 June 1999 and shall act jointly with the
Cabinet Francis Lefebvre in this respect. Should the SLF not have given
the required approvals by the Merger Date, the Parties shall take all
reasonable steps conforming all applicable tax regulations to minimize HA's
tax exposure as a result of the contribution and the Merger Date may be
postponed without indemnity up to 30 September 1999 at the latest.
The Parties undertake to comply with the requirements imposed by the SLF
(if any).
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Page 5.
5.3 UK
From the Merger Date to the 6/th/ anniversary of the Merger Date, the MP
Shareholders shall cause any relevant company, representative, employee,
manager and officer of the New MP group not to take any action on behalf
of, or relating to the sharecapital of, Euro RSCG Limited except as
explicitly required by law or as reasonably requested for tax reasons by HA
(provided that such company remains a dormant company and that the request
does not imply a cost for New MP).
Article 6 - Non-recurrent compensation
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The Parties hereby agree that:
(i) With regards to UK (HA):
- HA will pay for 100 % of the long term incentive plan (LTIP)
accumulated until 31 December 1998 ;
- For valuation purposes, the LTIP for 1998 will not take into
account in the calculation of EBITDA an amount of 383,000 Pounds
before audit adjustment ; however this exclusion shall not affect
the Average Net Cash position;
- For 1999, HA will pay the current LTIP up to any amounts payable
for any profit before taxes (PBT objective achieved up to PBT =
1,800,000 Pounds). Any LTIP payment for any PBT achieved in
excess of 1,800,000 Pounds shall be paid by New MP ;
- A new LTIP shall be negotiated for three new years (2000, 2001,
2002).
- For the period of the New LTIP (three years) HA will pay any
amounts due, if any, under said new LTIP for any PBT objective
under 1,800,000 Pounds. Any LTIP payment for any PBT achieved in
excess of 1,800,000 Pounds shall be paid by New MP. This
obligation is subject to HA being present at the negotiation of
the new LTIP and approving such new LTIP.
(ii) - With regards to Mediapolis France (HA):
HA will pay for 100 % of the long term incentive plan (LTIP)
accumulated until 31 December 1998 ;
- For valuation purposes, the LTIP for 1998 will not take into
account in the calculation of EBITDA an amount of 1,330,000
French Francs before audit adjustment; however this exclusion
shall not affect the Average Net Cash position;
- A new LTIP shall be negotiated for three new years (1999, 2000
and 2001);
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Page 6.
- For the period of the New LTIP (three years) HA will pay any
amounts due, if any, under said new LTIP for any PBT objective
under 12,500,000 French Francs. Any LTIP payment for any PBT
achieved in excess of 12,500,000 French Francs shall be paid by
New MP. This obligation is subject to HA being present at the
negotiation of the new LTIP and approving such new LTIP.
(iii) With regards to Spain (MP):
- 125,000,000 Pesetas of the "Prima de gestion" will not be taken
into account for the calculation of EBITDA (but will affect the
net cash position).
Article 7 - Dividends
---------------------
The Parties hereby agree that MP and HA Media Business will pay a dividend in
respect of the fiscal year ending on 31st December 1998 in an amount
corresponding to 100% of the net profit of operation of such Media Business for
the fiscal year ending on 31st December 1998. In addition Media Planning
shall distribute reserves as an extraordinary dividend in an amount of
500,000,000 Pesetas. As a consequence, an amount of 250,000,000 Pesetas shall
be deducted from Media Planning's Average Net Cash position for 1998 for the
purpose of the valuation formula provided in Article 1.4 of the Merger
Agreement.
The respective dividends shall be paid and belong to the respective shareholders
as at 31 December 1998.
Article 8 - Acquisitions, Disposals
----------
8.1 Acquisition of Advertising Agencies by HA
Should HA acquire through purchase, contribution, merger or otherwise a
company or a group of companies forming a network of agencies (i.e. with
agencies established in more than two countries), Section 1.3.3 of the
Merger Agreement shall apply.
Should HA acquire through purchase, contribution, merger or otherwise a
company or a group of companies which do not form a network of agencies
(i.e. with agencies established in two countries or less), Section 1.3.3 of
the Merger Agreement shall not apply and HA shall be free to proceed with
such an acquisition. However, in such circumstance, HA undertakes to
offer, (by written notification sent to New MP within one month of such
acquisition) to New MP to acquire by purchase, contribution, merger or
otherwise the Media Business of the acquired company or companies. New MP
shall have one month from the written notification received from HA to
notify HA that it wishes to acquire the Media Business of the acquired
company or companies (under terms and conditions to be discussed and agreed
between HA and New MP as soon as possible after New MP notifying HA its
intention to acquire the Media Business of the acquired company or
companies). Should New MP not wish to acquire the Media
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Page 7.
Business of the acquired company or companies, New MP and such Media
Business shall compete independently.
8.2 Disposal
Should HA wish to sell through a sale, contribution, merger or otherwise an
agency or a group of agencies (except in all cases when such sale does not
affect New MP media business) the total gross income of which is greater
than 5% of the total gross income of the then HA group, the proposed sale
shall be subject to the prior approval of the New MP Board of Directors
(given at a 2/3 majority).
Article 9 - Change of the valuation formula and resulting changes
-----------------------------------------------------------------
For the purpose of Article 1.4 of the Merger Agreement, the amounts "M" and "C"
shall be defined as follows:
M = valuation multiple of [*].
C = Average Net Cash position for 1998.
----------------------------------
2
Article 10 - Clause 1.4.2
-------------------------
Clause 1.4.2 of the Merger Agreement is amended to read as follows:
(( 1.4.2. Young and Rubicam clients Migration
Valuation of Young & Rubicam client's Media Business contributed by HA
shall be adjusted in UK and France(for the purposes of this formula,
((Country)) shall be understood to refer to UK or France) by the amounts
resulting from applying the following formula:
[Country EBITDA - (Country Other Income x 0,5)] x Y&R fees x R x M
--------
Country fees
Where:
Country Other Income =
a) For UK = to be determined according to UK accounting principles by the
Auditors.
b) For France = 0
R =
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
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Page 8.
a) For UK: R = 0,75
b) For France: R = 0.50
M = [*]
Y&R fees = Fees from Young & Rubicam clients, to be calculated following
accounting principles by the Auditors.
Country fees = Total fees in relevant country, to be calculated following
accounting principles by the Auditors.
If Young & Rubicam clients communicate at any time in writing to New MP or
to HA that they will stop being a Media Business client before December
31/st/, 1999, HA shall compensate New MP the value of said clients. Said
compensations will be made in the way described in clause 1.5.2.5.>>
Article 11 - Adjustments
------------------------
Article 1.5 of the Merger Agreement shall apply subject to the following
modifications:
The actual 1998 accounts of HA Media Business and MP Media Business are attached
as Annex A (the "Actual Accounts"). All references to "proforma accounts" and
"proforma values" in the Merger Agreement shall be deemed reference to "actual
accounts" and "actual values" (resulting from the accounts attached as Annex A)
and all references to "actual values" shall be deemed reference to "Actual
Audited Values".
On the basis of the Actual Accounts including Chanel fees entirely plus
additional MVBMS clients' fees in the amount of US$ 585,000 (the "Initial MVBMS
Excess Fees") which are not included in the Audited Accounts, the amount "ThA"
(amount of the theoretical adjustment) is equal to zero.
Arthur Andersen, as Independent Auditor, shall review the Actual Accounts as
provided in Section 1.5.1.2 of the Merger Agreement and shall calculate the
"actual values" according to the procedures that the parties shall jointly
notify to Arthur Andersen. The Arthur Andersen report (which shall particularly
include its calculation of the "actual values"), shall be provided to the
parties on 30 April 1999 at the latest.
The compensation to be paid under Sections 1.5.2.5 and 1.5.2.6 of the Merger
Agreement shall be twice the amount resulting from applying Section 1.5.2, as a
penalty to be paid by the party generating the deficiency.
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
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Article 12 - MVBMS, Settlement of Adjustments
---------------------------------------------
12.1 Settlement Adjustments
Clause 1.6 of the Merger Agreement is amended to read as follows:
"1.6 Settlement of Adjustments
HA or the MP Shareholders, as the case may be, will settle the AcA, as
calculated pursuant to clause 1.5.1.2 as follows:
The Initial MVBMS Excess Fees can be either increased or decreased (the
amount so increased or decreased being defined as the "Final MVBMS Excess
Fees") as a result of the audit provided in Clause 1.5.1.2 of the Merger
Agreement so that the resulting amount "AcA" is equal to zero and that
there is no adjustment (in cash or by variation of percentage of
shareholding in New MP) under the Merger Agreement.
If as a result of the audit provided in Clause 1.5.1.2 of the Merger
Agreement, the Independent Auditor determines that the Actual Audited Value
of MP Contributions is lower than the Actual Value of MP Contributions
resulting from the Actual Accounts, the MP Shareholders shall have the
option:
Firstly, to reduce the Initial MVBMS Excess Fees,
Secondly, to reduce the Chanel Fee,
Thirdly, to contribute the subsidiary "Actiones Especiales",
in all cases, applying the standard valuation provided in the Merger
Agreement.
HA or the MP Shareholders, as the case may be, will determine no later than
May 17/th/, 1999 their decision as to how to proceed.
Subject always to Section 1.5.1.3 of the Merger Agreement, if the AcA
cannot be settled in full in the way provided above so that "AcA" is equal
to zero, the compensation shall be, as a penalty, equal to twice the amount
of the AcA and such amount shall be settled by the party liable for the
settlement : (i) paying such amount in cash to New MP, or (ii) accepting a
decrease of its percentage of participation in New MP, or (iii) a
combination of (i) and (ii)."
12.2 Migration US
12.2.1 The following amounts shall be determined as per the provisions of
the Merger Agreement:
"A" ("Final MVBMS Excess Fees");
"B", the EBITDA for the migration list in the U.S.;
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Page 10.
"C", the Adjustment for Migration List Clients.
If the amount "A" (Final MVBMS Excess Fees) is greater than the amount "C"
(Adjustment for Migration List Clients), the amount to be paid under the
Merger Agreement for Migration List Clients in the U.S. shall be calculated
on the basis of the following formula:
[B - (A - C)] x multiple
If the amount "A" (Final MVBMS Excess Fees) is equal to or less than the
amount "C" (Adjustment for Migration List Clients), the amount to be paid
under the Merger Agreement for Migration List Clients in the U.S. shall be
calculated on the basis of the following formula:
B x multiple
12.2.2 Notwithstanding the provision of Clause 12.2.1 above, in the event
that as a result of the audit of the Actual Accounts carried out by the
Independent Auditor as provided in Clause 1.5.1.2 of the Merger Agreement,
the Independent Auditor determines that the Actual Audited Value of HA
Contributions is lower than the Actual Value of HA Contributions (i.e. the
value resulting from the Actual Accounts attached hereto), the amount to be
paid under the Merger Agreement for Migration List Clients in the U.S.
shall be calculated on the basis of the provisions provided in Clause
12.2.1 above but the amount "C" shall only be taken into account in such
formula up to the amount corresponding to the amount of the MVBMS fees
calculated on the basis of a 1.1% commission on net billings for 1998.
Article 13 - Miscellaneous financing matters
--------------------------------------------
13.1 Release of Guarantees
The Parties undertake to cause New MP to provide its best efforts to obtain
the substitution and release of any guarantees provided by HA or any HA
group companies to third parties in connection with the activities of the
Acquired Companies as soon as reasonably possible after the Merger Date.
Until such time as such substitution and release are obtained, should HA or
any HA group company have to make any payments to third parties under any
such guarantee, New MP shall pay or cause to be paid to HA or the relevant
HA group company any amount thus paid, upon request.
13.2 Financing Arrangements
Prior to the Merger Date, the Interim Committee shall review all financial
arrangements and guarantees between the Acquired Companies and HA or HA
group companies and MP Shareholders, and shall decide which arrangements
they wish to maintain after the
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Page 11.
Merger Date and which should be terminated forthwith, which termination HA
and the MP Shareholders shall cause, if so required.
13.3 Migration U.S. and Mexico
The obligation of New MP provided in Article 1.3.1 of the Merger Agreement
is subject to New MP having reviewed to its satisfaction the financial
information that will be provided by HA with this respect. Upon review,
New MP will decide by simple majority of the Board of Directors at its
discretion whether it wishes to proceed with the transfer of the U.S.
and/or Mexico or not.
13.4 Annex G and H of the Merger Agreement
Annex G
For the purpose of the valuation of HA-contributed media Business in
Portugal, Average Net Cash position during the 1998 fiscal year shall also
be taken into account, using MP bench-marking.
Annex H
The data established in Annex H (Proforma Migration List) of the Merger
Agreement shall be adjusted, prior to Merger Date, to reflect the true
figures used for the respective client fees and EBITDA calculations, for
the purposes of the Merger Agreement.
13.5 Cash UK
The Independent Auditor appointed under Clause 1.5.1.2 of the Merger
Agreement shall determine the Average Net Cash position of Mediapolis UK
for the year 1999 pursuant to the principles and methods provided for in
Section 1.5.1.2 of the Merger Agreement (the "1999 Audited Average Net Cash
Position of Mediapolis UK").
If the 1999 Audited Average Net Cash Position of Mediapolis UK is lower
than the amount of the Average Net Cash Position of Mediapolis UK used for
the purpose of the valuation, HA shall pay to New MP the amount of the
difference between these two amounts.
13.6 Commissions
HA guarantees that, as long as the MVBMS clients are clients of the HA
group, the commissions for media services payable to New MP or the relevant
subsidiary from 1/st/ January 1999 shall be calculated on the basis of a
1.1% commission on net billings.
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Page 12.
Article 14 - Coordination Interim Committee, Reporting
------------------------------------------------------
In addition to any other terms and conditions agreed in the Merger Agreement,
and subject to the first paragraph of Clause 14.1 below, the Parties undertake
and agree on the following obligations to be applicable for the period up to the
Merger Date.
14.1 Interim Committee:
Until approval of the Merger is obtained from the European Commission, the
Interim Committee will take a purely advisory role and not an executive role,
unless otherwise authorized by the European Commission. Until said approval or
authorization is obtained, HA and MP shall abstain from effecting any acts that
could affect the Merger or outside the ordinary course of business.
Subject to the immediately preceding paragraph, from the date hereof until the
Merger Date, HA Group and MP Group will be managed in coordination by a
committee (the "Interim Committee") composed of eight members. The functions
and responsibilities of the Interim Committee shall be, in general, to
supervise, control and direct all the activities of the Media Business
Contributions of HA and MP. Without limitation, the Interim Committee will,
whenever it considers convenient:
(i) review and approve the acts and decisions of managers and Directors of the
Media Business Contributions;
(ii) establish business guidelines and policies, and provide instructions for
any employees;
(iii) remove or replace Directors or employees of the Media Business
Contributions;
(iv) assist and participate in all Board or management meetings in any of the
companies of the Media Business Contributions;
(v) have the right to request and obtain from the Media Business Contributions
any information without limitation;
(vi) approve, disapprove or instruct to execute any agreement or contract
affecting the Media Business Contributions;
(vii) approve any acts to be taken by each respective company's management of
the Media Business Contributions if they are included in the acts listed
in paragraph b) below (the "Majority Acts"). No Media Business
Contributions company may take or implement any Majority Acts without the
prior approval of the Interim Committee.
14.2 Calling and voting majorities
The calling of an Interim Committee shall be effected by any member by fax or
hand-delivered letter to the addresses established below.
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Page 13.
Subject to Clause 14.1 (1/st/ paragraph), all decisions of the Interim Committee
will be taken by majority vote except the following decisions which will require
unanimity:
(i) Acquisition of shares, partnership interests or any kind of equity
instruments in an amount greater than (the equivalent of) one
million United States dollars ($1,000,000) per transaction;
(ii) Direct or indirect sale of a business generating a gross yearly
income greater than (the equivalent of) one million United States
dollars ($1,000,000);
(iii) Incorporation or liquidation of any company or other juridical
person;
(iv) Entering into any joint venture, partnership or any other similar
agreement;
(v) Entering into any bank loan or debt restructuring agreement greater
than double the net worth of the relevant company;
(vi) Granting pledges, guarantees or similar undertakings to third
parties;
(vii) Any investment not provided for in the annual budgets for operations
and investments for amounts greater than (the equivalent of) one
million United States dollars ($1,000,000);
(viii) Any transaction with the shareholders, managers or any entity (or
entities) which Controls (as defined below), is Controlled by or is
under the common Control with, a shareholder (a "Related Party or
Parties") except those executed in the ordinary course of business;
Control shall mean the fact of owning, directly or indirectly, more
than 50% of the shares or voting rights of any entity or having any
contractual right to appoint the management of an entity pursuant to
such entity's by-laws, a shareholders agreement or any equivalent
document.
In the event of a tie vote, the General Coordinator mentioned in clause 14.3
below will have a casting vote.
14.3 Composition
The Interim Committee will be composed of the following eight members:
- Fernando Rodes (General Coordinator)
- Alphonso Rodes
- Jorge Ustrell
- Joaquin Bohorquez
- Alain de Pouzilhac
- Jacques Herail
- Richard Pace
- Didier Colmet-Daage
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Page 14.
The General Coordinator will have the capacity to exercise all the faculties and
rights of the Interim Committee listed above, fully and without limitations,
except the acts listed in the previous paragraph requiring a supermajority vote
to be passed by the Interim Committee, subject in all cases to Clause 14.1
(1/st/ paragraph).
The Interim Committee members are appointed until Merger Date. The removal of
any Interim Committee member prior to that date will require a unanimous
decision by all Parties to this Agreement.
14.4 Compliance undertaking
The Parties shall ensure that any company, corporate body or employee in its
Media Business Contributions will collaborate with, follow any instructions from
and implement any decisions of the Interim Committee or the General Coordinator
efficiently and speedily.
14.5 Reporting
The Interim Committee shall review and determine the best way for New MP to
comply reasonably with HA's reporting procedures after the Merger Date.
Article 15 - Miscellaneous
--------------------------
15.1 Notices
Any notice, request, demand or other communication given with reference to
this Agreement shall be delivered as provided in the Merger Agreement.
15.2 Governing Law
This Agreement shall be governed by and construed in accordance with the
substantive laws of Spain.
15.3 Assignability
Except as provided expressly herein or in any of the Implementation
Agreements, this Agreement will bind any successors of the Parties (and
specifically to the Martinez-Rovira Family as described in the Shareholders
Agreement), but no rights or obligations may be assigned to any third
Party.
15.4 Jurisdiction
Except as otherwise expressly stated herein any controversy or claim
arising out of or relating to the Merger Agreement as amended by this
Agreement (including without limitation a breach thereof or the rights or
liabilities of the Parties thereunder as well as all matter related to the
signature, interpretation, validity and termination of the Merger
Agreement) shall be exclusively referred to and finally settled by
arbitration under the
<PAGE>
Page 15.
Arbitration Rules of the Chamber of Commerce and Industry of Geneva (CCIG)
(the "Court"). The arbitral tribunal shall be composed of three members.
The Parties to any controversy or claim will jointly appoint three
arbitrators and, if within 30 days from the request of one party (whether
as plaintiff or defendant), the Parties fail to do so, then the Court will
appoint such three arbitrators, one of whom shall be neither a Spanish nor
a French national or resident.
The arbitration shall be held in Geneva. The written submissions and the
proceedings shall be made and conducted in the English language.
The arbitration award shall be based on law and not on equity (equidad
"amiable composition") and shall not be subject to appeal.
Judgement upon the award rendered may be entered in any court having
jurisdiction or application may be made to such court for judicial
acceptance of the award and an order of enforcement, as the case may be.
15.5 Cross-reference
The cross reference in Section 1.2.2 (c) of the Merger Agreement to Section
6.3 of such Agreement should be read as a reference to Section 6.2.
15.6 Term of the Merger Agreement
This Agreement (and therefore the Merger Agreement) will be valid until the
8/th/ anniversary of the effective Merger Date.
15.7 Amendment to the Merger Agreement
This Agreement is part of the Merger Agreement which, all approvals
provided for in Article 12 of such Merger Agreement having been obtained,
is binding on the parties. Except as modified by this Agreement, the
Merger Agreement shall continue to apply according to its terms.
<PAGE>
Page 16.
Executed in Barcelona, on 22 March 1999
For the purpose of identifying the executed copies of this Agreement, the
Parties have requested Mr. Richard Pace or Mr. Jean Reynaud for HA and Antonio
Sanchez-Pedreno or Jacqueline Bulder for MP Shareholders and New MP to initial
the final versions of this Agreement as a consequence whereof the Parties have
only executed the execution page of this Agreement.
/s/ Enrique Pinel Lopez
------------------------------------------------
DEYA, S.A.
represented by Mr. Enrique Pinel Lopez
/s/ Leopoldo Rodes Castane
------------------------------------------------
ADVERTISING ANTWERPEN B.V.
represented by Mr. Leopoldo Rodes Castane
/s/ Francisco Gonzalez-Robatto Fernandez
------------------------------------------------
CANTABRO CATALANA DE INVERSIONES, S.A.
represented by Mr. Francisco Gonzalez-Robatto
Fernandez
/s/ Manuel Esteve-Claramun
------------------------------------------------
COMPANIA DE CARTERA E INVERSIONES, S.A.
represented by Mr. Manuel Esteve-Claramun
/s/ Fernando Rodes Vila
------------------------------------------------
CALLE ARCOS, S.L.
represented by Mr. Fernando Rodes Vila
/s/ Jose Martinez-Rovira Vidal
------------------------------------------------
INVERMARO, S.L.
represented by Mr. Jose Martinez-Rovira Vidal
/s/ Alfonso Rodes Vila
------------------------------------------------
INVERSIONES Y SERVICIOS PUBLICITARIOS S.A.
represented by Mr. Alfonso Rodes Vila
/s/ Alain de Pouzilhac
------------------------------------------------
HAVAS ADVERTISING S.A.
represented by Mr. Alain de Pouzilhac
<PAGE>
Page 17.
Annex A
Actual Accounts
<PAGE>
____________________________________________
HAVAS ADVERTISING MEDIA
ACTUAL ACCOUNTS
____________________________________________
<PAGE>
March 18th, 1999
HAVAS ADVERTISING BUSINESS
--------------------------
(IN 000, FRENCH FRANCS)
-----------------------
<TABLE>
<CAPTION>
-------------------------------------------
AVERAGE DETAILS
EBITDA CASH LUMP SUM IN
(DEBT) EXHIBIT
-------------------------------------------
<S> <C> <C> <C> <C>
I. Standard valuation
method 74 176 462 741 1
France, UK, USA,
Netherlands [*] [*]
Ltip Adjustment: [*] [*]
- France
- UK [*] [*]
Y&R Contribution adjustment: [*] [*]
- France
- UK ---------------------------------
Sub-Total [*] [*] [*]
---------------------------------
II. Adjusted standard
method [*] [*] [*]
- Portugal [*] [*]
- Argentina [*] [*]
- Italy migration list [*] [*]
- France migration list
---------------------------------
Sub-Total [*] [*] [*]
---------------------------------
III. Project cost
- Italy [*]
IV. Others
- Spain [*]
- Avoir fiscal [*]
---------------------------------
TOTAL [*] [*] [*]
---------------------------------
multiple [*]
---------------------------------
[*] [*] [*]
=================================
</TABLE>
--------------
CONTRIBUTION 1 801 465
--------------
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXHIBIT 1.
----------
<TABLE>
<CAPTION>
P&L KFRF
----------------------------------------------------------------------------------------------------------------------------------
1998 FR-AFFI FR-CONCERTO FR-HCA FR-MCBB FR- FR-SEM FR-CCA TOTAL FRANCE
CONSEIL MEDIA WORLDWIDE MEDIAPOLIS
FRANCE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Echange Rate
---------------------------------------------------------------------------------------------------
BILLINGS [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
CLIENT FILES [*] [*] [*] [*] [*] [*] [*] [*]
MEDIA INCOME [*] [*] [*] [*] [*] [*] [*] [*]
OTHER INCOME [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME [*] [*] [*] [*] [*] [*] [*] [*]
----------------------------------------------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
COMPENSATION [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Rent & occupancy [*] [*] [*] [*] [*] [*] [*] [*]
Fees and subscriptions [*] [*] [*] [*] [*] [*] [*] [*]
Leasings [*] [*] [*] [*] [*] [*] [*] [*]
Depreciation [*] [*] [*] [*] [*] [*] [*] [*]
Management fees [*] [*] [*] [*] [*] [*] [*] [*]
Travel - entertainment [*] [*] [*] [*] [*] [*] [*] [*]
Public relations [*] [*] [*] [*] [*] [*] [*] [*]
New Business expenses [*] [*] [*] [*] [*] [*] [*] [*]
Telephone mail [*] [*] [*] [*] [*] [*] [*] [*]
Tax (other than income tax) [*] [*] [*] [*] [*] [*] [*] [*]
Computers [*] [*] [*] [*] [*] [*] [*] [*]
Insurance [*] [*] [*] [*] [*] [*] [*] [*]
Stationery and supply [*] [*] [*] [*] [*] [*] [*] [*]
Research [*] [*] [*] [*] [*] [*] [*] [*]
Miscellaneous [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
TOTAL OTHER EXPENSES [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
OPERATING EXPENSES RECHARGED [*] [*] [*] [*] [*] [*] [*] [*]
TO SUBSIDIARIES
---------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES [*] [*] [*] [*] [*] [*] [*] [*]
----------------------------------------------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
DEBIT [*] [*] [*] [*] [*] [*] [*] [*]
----------------------------------------------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
NON-OPERATING (exp) [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
FINANCIAL Income (exp) [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
PBT [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
TAX [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
NET PROFIT [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
MINORITY INTERESTS [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
PAT GROUP SHARE [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
EBIT [*] [*] [*] [*] [*] [*] [*] [*]
DEPRECIATION [*] [*] [*] [*] [*] [*] [*] [*]
CASH DISCOUNTS
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
NEW EBIT DA [*] [*] [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
CASH [*] [*] [*]
---------------------------------------------------------------------------------------------------
<CAPTION>
P&L
--------------------------------------------------------------------------------------------
1998 NLG- UK-MEDIAPOLIS US-SFM TOTAL
MEDIAMAATWERK UK
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Echange Rate
--------------------------------------------------------------
BILLINGS [*] [*] [*] 14 462 711,2
--------------------------------------------------------------
--------------------------------------------------------------
CLIENT FILES [*] [*] [*] [*]
MEDIA INCOME [*] [*] [*] [*]
OTHER INCOME [*] [*] [*] [*]
--------------------------------------------------------------
--------------------------------------------------------------------------------------------
TOTAL GROSS INCOME [*] [*] [*] 375 460,0
--------------------------------------------------------------------------------------------
[*] [*] [*] 100%
--------------------------------------------------------------
--------------------------------------------------------------
COMPENSATION [*] [*] [*] 215 162,8
--------------------------------------------------------------
[*] [*] [*] 57%
-------------------------------------------------------------
--------------------------------------------------------------
Rent & occupancy [*] [*] [*] 21 223,6
Fees and subscriptions [*] [*] [*] 19 411,5
Leasings [*] [*] [*] 1 801,0
Depreciation [*] [*] [*] 8 067,9
Management fees [*] [*] [*] 10 423,0
Travel - entertainment [*] [*] [*] 8 322,0
Public relations [*] [*] [*] 3 894,6
New Business expenses [*] [*] [*] 2 266,9
Telephone mail [*] [*] [*] 5 702,3
Tax (other than income tax) [*] [*] [*] 3 207,7
Computers [*] [*] [*] 6 348,4
Insurance [*] [*] [*] 1 355,6
Stationery and supply [*] [*] 2 234,6
Research [*] [*] [*] 28 081,0
Miscellaneous [*] [*] [*] 8 425,7
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL OTHER EXPENSES [*] [*] [*] 128 765,9
--------------------------------------------------------------
--------------------------------------------------------------
OPERATING EXPENSES RECHARGED [*] [*] [*] 34 577,0
TO SUBSIDIARIES
--------------------------------------------------------------
--------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES [*] [*] [*] 309 351,7
--------------------------------------------------------------------------------------------
[*] [*] [*] 82%
--------------------------------------------------------------
--------------------------------------------------------------------------------------------
DEBIT [*] [*] [*] 66 108,4
--------------------------------------------------------------------------------------------
[*] [*] [*] 18%
--------------------------------------------------------------
--------------------------------------------------------------
NON-OPERATING (exp) [*] [*] [*] -3 393,6
--------------------------------------------------------------
--------------------------------------------------------------
FINANCIAL Income (exp) [*] [*] [*] 20 528,3
--------------------------------------------------------------
--------------------------------------------------------------
PBT [*] [*] [*] 83 243,1
--------------------------------------------------------------
[*] [*] [*] 22%
--------------------------------------------------------------
--------------------------------------------------------------
TAX [*] [*] [*] 29 963,1
--------------------------------------------------------------
--------------------------------------------------------------
NET PROFIT [*] [*] [*] 53 279,9
--------------------------------------------------------------
--------------------------------------------------------------
MINORITY INTERESTS [*] [*] [*] 0,0
--------------------------------------------------------------
--------------------------------------------------------------
PAT GROUP SHARE [*] [*] [*] 53 279,9
--------------------------------------------------------------
--------------------------------------------------------------
EBIT [*] [*] [*] 66 108,4
DEPRECIATION [*] [*] [*] 8 067,9
CASH DISCOUNTS 0,0
--------------------------------------------------------------
--------------------------------------------------------------
NEW EBIT DA [*] [*] [*] 74 176,3
--------------------------------------------------------------
--------------------------------------------------------------
CASH [*] [*] [*] 462 741,1
--------------------------------------------------------------
</TABLE>
Notes: Cash discounts are already recorded in Gross Income thus in EBITDA. Tax
presented is "notional" as if these companies were not a part of Havas
Advertising tax consolidation.
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXHIBIT 2.
----------
MEDIAPOLIS France
-----------------
<TABLE>
<CAPTION>
PER MAN ACCTS ADJUSTMENTS REVISED
------------------ ------------------------ ------------------
<S> <C> <C> <C> <C>
BILLINGS [*] [*] [*]
CLIENT FEES [*] [*] [*]
MEDIA INCOME
OTHER INCOME
----------------------------------------------------------------
GROSS INCOME [*] [*] [*]
----------------------------------------------------------------
COMPENSATION [*] [*] [*]
OTHER EXPENSES [*] [*] [*]
DEPRECIATION [*] [*]
----------------------------------------------------------------
TOTAL OPERATING EXPENSES [*] [*] [*]
----------------------------------------------------------------
----------------------------------------------------------------
OPERATING PROFIT (Ebit) [*] [*] [*]
----------------------------------------------------------------
INTEREST INCOME [*] [*] [*]
NON OPERATING [*] [*]
----------------------------------------------------------------
PROFIT BEFORE TAX & LTIP [*] [*] [*]
----------------------------------------------------------------
LTIP [*] [*] [*]
----------------------------------------------------------------
PBT [*] [*] [*]
----------------------------------------------------------------
EBIT DA [*] [*] [*]
MEDIA INCOME Y&R [*]
i.e. % total [*]
Y&R contribution [*]
--------------------
Y&R adjustement [*] [*]
--------------------
LTIP computation
ABOVE PBT [*]
SHARED WITH MANAGERS [*] [*] [*]
AFTER TAX EFFECT [*] [*] [*]
rounded [*]
NEW TRESHOLD [*]
SHARED WITH MANAGERS [*] [*]
AFTER TAX EFFECT [*] [*]
--------------------
LTIP adjustement [*]
--------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXHIBIT 3.
----------
MEDIAPOLIS UK
-------------
Exchange Rate 9,78
<TABLE>
<CAPTION>
PER MAN ACCTS ADJUSTMENTS REVISED
------------- ------------- ----------------
(Pounds) (Pounds) (Pounds) FF
<S> <C> <C> <C> <C>
BILLINGS [*] [*] [*] [*]
CLIENT FEES [*] [*] [*] [*]
OTHER INCOME
- MEDIA SURPLUSES [*] [*] [*] [*]
- POSTER REBATE [*] [*] [*] [*]
- EXCHANGE GAINS [*] [*] [*] [*]
- EARLY PAYMENT DISCOUNTS [*] [*] [*] [*]
- CLIENT OVERPAYMENTS [*] [*] [*] [*]
- MEDIA OWNER REBATES [*] [*] [*] [*]
- NON-MEDIA SURPLUSES [*] [*] [*] [*]
- 1997 RESIDUE (Y&R & WCRS) [*] [*] [*] [*]
---------------------------------------------------------
[*] [*] [*]
---------------------------------------------------------
---------------------------------------------------------
GROSS INCOME [*] [*] [*] [*]
---------------------------------------------------------
COMPENSATION [*] [*] [*] [*]
OTHER EXPENSES [*] [*] [*]
DEPRECIATION [*] [*]
---------------------------------------------------------
TOTAL OPERATING EXPENSES [*] [*] [*]
---------------------------------------------------------
---------------------------------------------------------
OPERATING PROFIT (Ebit) [*] [*] [*] [*]
---------------------------------------------------------
INTEREST INCOME [*] [*] [*] [*]
---------------------------------------------------------
PROFIT BEFORE TAX & LTIP [*] [*] [*] [*]
---------------------------------------------------------
LTIP [*] [*] [*] [*]
---------------------------------------------------------
PBT [*] [*] [*] [*]
---------------------------------------------------------
EBIT DA [*] [*] [*] [*]
EBIT DA - 50% OTHER INCOME [*] [*]
MEDIA INCOME Y&R [*] [*]
i.e. % total [*]
Y&R contribution [*] [*]
-------
Y&R adjustement [*] [*] [*]
-------
LTIP computation
0-650 [*] [*] [*] [*] [*]
650-800 [*] [*] [*] [*]
800-900 [*] [*] [*] [*]
900 and above [*] [*] [*] [*]
---------------------------------------------------------
[*] [*] [*]
---------------------------------------------------------
new treshold [*] [*] [*]
1800 and above [*]
-------
LTIP adjustement [*] [*]
-------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXHIBIT 4.
----------
PORTUGAL MEDIA BUSINESS
-----------------------
(in 000. French Francs)
Exchange rate used : 1 Pte = 0,0327
---------------------------- ------
<TABLE>
<CAPTION>
IN 000.ESC IN 000.FF
------------ -------------
<S> <C> <C>
BILLINGS [*] [*]
CLIENT FEES [*] [*]
MEDIA INCOME [*] [*]
OTHER INCOME [*] [*]
----------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME [*] [*]
----------------------------------------------------------------------------------------------------
EBITDA MEDIA PLANNING Portugal % [*] [*]
----------------------------------------------------------------------------------------------------
ADJUSTED VALUE [*] [*]
----------------------------------------------------------------------------------------------------
CASH
NACP MEDIAPLANNING Portugal % Billings [*] [*]
---------------------------------------------------
NACP MEDIAPOLIS [*] [*]
---------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXHIBIT 5.
----------
ARGENTINA
---------
(EURO RSCG SA + ICONOS COMUNICACIONES SA)
(IN THOUSAND ARS)
<TABLE>
<CAPTION>
BILLINGS CLIENT MEDIA TOTAL EBITDA EBITDA
-------- ------ ----- ----- ------
FEES INCOME % Adjusted
---- ------ --
<S> <C> <C> <C> <C> <C> <C>
GROUP 1
-------
[*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*] [*] [*]
--------------------------------------------------------- ---------
[*] [*] [*] [*] [*] [*]
GROUP 2
-------
[*] [*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*]
--------------------------------------------------------- ---------
[*] [*] [*] [*] [*] [*]
GROUP 3
-------
[*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*] [*] [*]
--------------------------------------------------------- ---------
[*] [*] [*] [*] [*] [*]
------------------------------------------------------------------------------------ ------------
GRAND-TOTAL (1+2+3) [*] [*] [*] [*] [*]
------------------------------------------------------------------------------------ ------------
Exchange Rate: 5,62
------------------ ------------
In 000. FF [*]
------------------ ------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXHIBIT 6.
----------
ITALY MIGRATION LIST
--------------------
(in Million French Francs)
Exchange rate used : 1 000 Liras = 3.4 FF
-----------------------------------------
TOTAL
-----------------
CLIENT FEES [*]
MEDIA INCOME [*]
OTHER INCOME [*]
------------------------ -----------------
TOTAL GROSS INCOME [*]
------------------------ -----------------
COMPENSATION [*]
OTHER EXPENSES [*]
------------------------ -----------------
TOTAL OPERATING EXPENSES [*]
------------------------ -----------------
------------------------ -----------------
EBIT [*]
------------------------ -----------------
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
EXHIBIT 7.
----------
FRANCE MIGRATION LIST
---------------------
(in Million French francs)
---------------------
BETC GBHR TOTAL
---------------------
CLIENT FEES [*] [*] [*]
MEDIA INCOME [*]
OTHER INCOME [*]
---------------------
TOTAL GROSS INCOME [*] [*] [*]
---------------------
COMPENSATION [*] [*] [*]
OTHER EXPENSES [*] [*] [*]
---------------------
TOTAL OPERATING EXPENSES [*] [*] [*]
---------------------
---------------------
EBIT [*] [*] [*]
---------------------
EBITDA HA France % [*]
ADJUSTED VALUE [*]
Note: lost clients in 1998 has not been taken into account in the Gross Income
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
MEDIA PLANNING ACTUAL ACCOUNTS
P & L
-----
(000 000)ESP
---------------------------------------------- -----------------------------------------------------------------------------
1998 MPESP MPPOR MPMEX TOTAL MP VALUE
---------------------------------------------- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------
BILLINGS [*] [*] [*] 140.840
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
CLIENT FEES [*] [*] [*] [*] [*] [*] [*] [*]
MEDIA INCOME [*] [*] [*] [*] [*] [*] [*] [*]
OTHER INCOME [*] [*] [*] [*] [*] [*] [*] [*]
----------------------------------------------------------------------------
---------------------------------------------- -----------------------------------------------------------------------------
TOTAL GROSS INCOME [*] [*] [*] [*] [*] [*] 9.913 7,04%
---------------------------------------------- ----------------------------------------------------------------------------
[*] [*] [*] 100%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
COMPENSATION [*] [*] [*] [*] [*] [*] 3.682 2,61%
-----------------------------------------------------------------------------
[*] [*] [*] 37%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Rent & Occupancy [*] [*] [*] [*] [*] [*] 392 0,28%
Fees and subscriptions [*] [*] [*] [*] [*] [*] 115 0,08%
Leasings [*] [*] [*] [*] [*] [*] 0 0,00%
Depreciation [*] [*] [*] [*] [*] [*] 324 0,23%
Management fees [*] [*] [*] [*] [*] [*] 0 0,00%
Travel - entertainment [*] [*] [*] [*] [*] [*] 180 0,13%
Public relations [*] [*] [*] [*] [*] [*] 110 0,08%
New Business expenses [*] [*] [*] [*] [*] [*] 0 0,00%
Telephone mail [*] [*] [*] [*] [*] [*] 121 0,09%
Tax (other than income tax) [*] [*] [*] [*] [*] [*] 46 0,03%
Computers [*] [*] [*] [*] [*] [*] 47 0,03%
Insurance [*] [*] [*] [*] [*] [*] 5 0,00%
Stationery and supply [*] [*] [*] [*] [*] [*] 74 0,05%
Research [*] [*] [*] [*] [*] [*] 267 0,19%
Miscellaneous [*] [*] [*] [*] [*] [*] 333 0,24%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
TOTAL OTHER EXPENSES [*] [*] [*] [*] [*] [*] 2.014 1,43%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
OPERATING EXPENSES RECHARGED TO SUBSIDIARIES [*] [*] [*] [*] [*] [*] 0 0,00%
---------------------------------------------- -----------------------------------------------------------------------------
TOTAL OPERATING EXPENSES [*] [*] [*] [*] [*] [*] 5.696 4,04%
---------------------------------------------- -----------------------------------------------------------------------------
[*] [*] [*] 57%
-----------------------------------------------------------------------------
---------------------------------------------- -----------------------------------------------------------------------------
EBIT [*] [*] [*] [*] [*] [*] 4.217 2,99%
---------------------------------------------- -----------------------------------------------------------------------------
[*] [*] [*] 43%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
NON OPERATING (Profit) [*] [*] [*] [*] [*] [*] 270 0,19%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
FINANCIAL Income (exp) [*] [*] [*] [*] [*] [*] -258 -0,18%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
PBT [*] [*] [*] [*] [*] [*] 4.229 3,00%
-----------------------------------------------------------------------------
[*] [*] [*] 43%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
TAX [*] [*] [*] [*] [*] [*] 1.119 0,79%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
NET PROFIT [*] [*] [*] [*] [*] [*] 3.110 2,21%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
MINORITY INTERESTS [*] [*] [*] [*] [*] [*] 185 0,13%
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
PAT GROUP SHARE [*] [*] [*] [*] [*] [*] 2,925 2,08%
-----------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
EBIT [*] [*] [*] [*]
DEPRECIATION [*] [*] [*] [*]
EBITDA [*] [*] [*] [*]
MINORITY INTEREST [*] [*] [*] [*]
EBITDA GROUP SHARE [*] [*] [*] [*]
M = [*]
-------------------------------------------------------------------------------------------------------------------------------
ENTERPRISE VALUE [*] [*] [*] [*]
-------------------------------------------------------------------------------------------------------------------------------
AVERAGE CASH POSITION [*] [*] [*] [*]
MINORITY INTEREST [*] [*] [*] [*]
AVERAGE CASH POSITION GROUP SHARE [*] [*] [*] [*]
REAL ESTATE VALUE [*]
CARS VALUE [*]
COLOMBIA PROJECT COST VALUE [*]
ARGENTINA PROJECT COST VALUE [*]
EXTRAORDINARY MANAGEMENT INCENTIVES [*]
EXTRAORDINARY DIVIDEND [*]
-------------------------------------------------------------------------------------------------------------------------------
TOTAL NET CASH VALUE [*]
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
EQUITY VALUE [*]
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
