-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DWe4P8OegD4lIrLiDydPyjRuoZi37ENACn2mqjcsJMAyn4AsDA/pauIpYwvs55cA LYutfXeltwFNaKNiAFgyiA== 0000950131-96-003091.txt : 19960701 0000950131-96-003091.hdr.sgml : 19960701 ACCESSION NUMBER: 0000950131-96-003091 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960628 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRUE NORTH COMMUNICATIONS INC CENTRAL INDEX KEY: 0000037931 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ADVERTISING AGENCIES [7311] IRS NUMBER: 361088161 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-05029 FILM NUMBER: 96587991 BUSINESS ADDRESS: STREET 1: 101 E ERIE ST CITY: CHICAGO STATE: IL ZIP: 60611 BUSINESS PHONE: 3127517000 MAIL ADDRESS: STREET 1: 101 E ERIE ST CITY: CHICAGO STATE: IL ZIP: 60611 FORMER COMPANY: FORMER CONFORMED NAME: FOOTE CONE & BELDING COMMUNICATIONS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FOOTE CONE & BELDING INC DATE OF NAME CHANGE: 19720824 10-K/A 1 FORM 10-K/A - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K/A AMENDMENT NO. 1 (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1995 OR [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the Transition period from _________to _________ COMMISSION FILE NO. 1-5029 TRUE NORTH COMMUNICATIONS INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 36-1088161 (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 101 EAST ERIE STREET, CHICAGO, ILLINOIS 60611-2897 (ADDRESS OF PRINCIPAL EXECUTIVE (ZIP CODE) OFFICES) REGISTRANT'S TELEPHONE NUMBER: (312) 751-7227 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: TITLE OF EACH CLASS NAME OF EACH EXCHANGE ON WHICH REGISTERED ------------------- ----------------------------------------- Common stock, par value New York Stock Exchange 33 1/3 cents per share SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [_] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference or included in Part III of this Form 10-K or any amendment to this Form 10-K. [X] The aggregate market value of Common Stock, 33 1/3 cents par value, held by non-affiliates of the Registrant, as of March 22, 1996 was $416,994,008. There were 23,533,232 shares of Registrant's 33 1/3 cents per share par value Common Stock outstanding as of March 22, 1996. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant's Annual Report to shareholders for the year ended December 31, 1995 are incorporated by reference into Parts I and II of this report. Portions of the Registrant's Proxy Statement relating to its annual meeting of shareholders held on May 15, 1996 are incorporated by reference into Part III. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Registrant hereby amends Item 14 of its 1995 Annual Report on Form 10-K to include the audited financial statements of Publicis Communication, a 50% or less owned foreign affiliate of Registrant. ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
PAGE ---- Item 14(a)--List of Financial Statements.................................. 5 Auditors' Report on Supplemental Note................................... 6 Item 14(a)(1)--Supplemental Note to Consolidated Financial Statements: A. Valuation Accounts................................................... 7 Item 14(a)(2)--Schedules Are not submitted because they are not required or because the required information is included in the financial statements or notes thereto. Item 14(a)(3)--Index of Exhibits The index of exhibits immediately precedes the exhibits filed with the Securities and Exchange Commission. Exhibits 10.1 and 10.2 included in this index are the management contracts and compensatory plans or arrangements required to be filed as exhibits hereto pursuant to the requirements of Item 601 of Regulation S-X. Item 14(b)--Reports on Form 8-K
Registrant filed the following reports on Form 8-K during the fourth quarter of 1995 and the first quarter of 1996:
DATE OF REPORT DESCRIPTION OF REPORTABLE EVENT -------------- ------------------------------- February 29, 1996 Under Item 5, Registrant reported the termination of its alliance agreements with Publicis Communication.
FORM 10-K--ITEM 14(a) TRUE NORTH COMMUNICATIONS INC. AND SUBSIDIARIES LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES The following consolidated financial statements of the Registrant and the Independent Public Accountant's Report covering these financial statements, appearing in the Registrant's 1994 Annual Report on pages 6 through 22 are incorporated herein by reference in Item 8: Consolidated Balance Sheets--December 31, 1994 and 1995 Consolidated Statements of Income--Years ended December 31, 1993, 1994 and 1995 Consolidated Statements of Stockholders' Equity--Years ended December 31, 1993, 1994 and 1995 Consolidated Statements of Cash Flows--Years ended December 31, 1993, 1994 and 1995 Notes to Consolidated Financial Statements--December 31, 1995 All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions, or are inapplicable, or the information called for therein is included elsewhere in the financial statements or related notes thereto contained in or incorporated by reference into this Report. Accordingly, such schedules have been omitted. Publicis Communication owns 51% of Publicis.FCB BV and 80% of Publicis Conseil. Accordingly, the consolidated financial statements of Publicis Communication and Subsidiaries include the results of operations and financial position of Publicis.FCB BV and Publicis Conseil. These financial statements have been prepared and audited based upon accounting and auditing standards and practices acceptable for external financial reporting purposes in France. These practices and standards can vary from U.S. accounting practice. Following is a reconciliation prepared by Registrant of reported net income to net income which would be reported under U.S. generally accepted accounting principles (amounts in thousands):
---------------------------- 1993 1994 1995 - ----------------------------------------------------------------------------------------------------- Net income as shown in financial statements (1) $23,186 $12,782 $32,070 - ----------------------------------------------------------------------------------------------------- Amortization of goodwill (2) (2,703) (5,623) (6,803) - ----------------------------------------------------------------------------------------------------- Italian restructuring reserves not acceptable under U.S. GAAP (3) -- 5,756 (6,017) - ----------------------------------------------------------------------------------------------------- Tax credit included in income not acceptable under U.S. GAAP (4) -- (2,445) (2,540) - ----------------------------------------------------------------------------------------------------- $20,483 $10,470 $16,710 ----------------------------
Notes: 1. Net income as reported was computed using the average exchange rates for the year. 2. Certain elements of goodwill are charged directly to equity or income in the year it arises, or are not otherwise amortized for French financial reporting purposes. The goodwill amortization expense adjustment was computed using forty years as the estimated useful life for each of the related goodwill components. 3. Under French generally accepted accounting principles, restructuring actions taken in 1995 up to the date of the audit opinion must be recorded in the 1994 financial statements. Application of EITF 94-3 to these financial statements result in this adjustment which, under U.S. generally accepted accounting principles, results in a 1995 charge to earnings of an equivalent amount (allowing for currency exchange fluctuations). Of the total amount of this adjustment, $1,273 relates to management and staff severance actions taken in 1995, $1,637 relates to the 1995 abandonment of excess lease space, $472 relates to the 1995 closure of a sale promotion agency, and $2,374 relates to legal and other associated restructuring costs incurred in 1995. 4. Under French generally accepted accounting principles, the utilization of tax credit carryforwards of acquired companies are reflected in earnings. Under U.S. generally accepted accounting principles, this amount is accounted for as a reduction of the initial purchase price and related goodwill. PUBLICIS COMMUNICATION CONSOLIDATED FINANCIAL STATEMENTS 31/12/1995 PUBLICIS COMMUNICATION 31/12/1995 PAGE 1 : Comparative Consolidated Income Statement. PAGE 2 : Comparative Consolidated Balance Sheet. PAGES 3/4 : Consolidated Statement of Change in Financial Statements. PAGES 5/10 : Notes to the Consolidated Financial Statements. PAGES 11/13 : List of Consolidated Companies.
PUBLICIS COMMUNICATION GROUP CONSOLIDATED INCOME STATEMENTS - ------------------------------------------------------------------------------------------------------------- (in thousands of French Francs) YEAR 1994 YEAR 1995 VAR. % - ------------------------------------------------------------------------------------------------------------- Billings 17 562 073 18 132 852 3.3% Purchases (14 824 544) (15 196 560) REVENUES 2 737 529 2 936 293 7.3% Salaries and Benefits (1 511 421) (1 638 275) 8.4% Office and General Expenses (776 463) (832 111) 7.2% TOTAL EXPENSES (2 287 884) (2 470 386) 8.0% OTHER INCOME 19 924 17 732 OPERATING PROFIT 469 569 483 639 3.0% Depreciation (105 037) (110 724) Provision doubtful debts (21 378) (16 258) Other provisions (17 448) (16 033) Interest income (expense) (20 785) 14 820 PROFIT BEFORE TAX 304 921 355 445 16.6% Exceptional costs (29 369) 3 043 Profit sharing - statutory (2 779) (7 263) Income Tax (110 537) (133 111) Profit (equity subsidiaries) 46 142 32 747 Extraordinary Loss (80 000) - ------------------------------------------------------------------------------------------------------------- NET INCOME 128 378 250 861 95.4% GROUP SHARE 70 738 160 350 126.7% - -------------------------------------------------------------------------------------------------------------
PUBLICIS COMMUNICATION GROUP CONSOLIDATED BALANCE SHEET (In thousands of French Francs) - ------------------------------------------------------------------------------ A S S E T S 31.12.1994 31.12.1995 - ------------------------------------------------------------------------------ FIXED ASSETS 1 053 291 1 104 147 ============ ---------- ---------- Intangible assets (gross) 629 684 737 923 Depreciation & amortization on intangible assets (19 109) (23 005) Tangible assets (gross) 643 377 681 858 Depreciation & amortization on tangible assets (408 316) (441 093) ---------- ---------- NET TANGIBLE AND INTANGIBLE ASSETS 845 636 955 683 Investments (non consolidated companies) 23 877 23 781 Investments (equity subsidiaries) 136 180 105 016 Interco loans 35 557 4 896 Other financial assets 34 026 37 106 Provision on financial assets (21 985) (22 335) ---------- ---------- NET FINANCIAL ASSETS 207 655 148 464 ---------- ---------- CURRENT ASSETS 3 848 894 4 217 222 ============== ---------- ---------- Work in progress 194 103 212 814 Advance payments made 64 020 47 770 Accounts receivable (net) 1 960 956 1 947 957 Interco receivable 16 945 40 351 Other debtors 1 063 543 1 150 283 Cash 549 327 818 047 ---------- ---------- OTHER CURRENT ASSETS 70 879 63 710 ==================== ---------- ---------- ---------- ---------- TOTAL ASSETS 4 973 064 5 385 079 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ L I A B I L I T I E S & E Q U I T Y 31.12.1994 31.12.1995 - ------------------------------------------------------------------------------ TOTAL EQUITY 820 323 1 459 155 ============ ---------- ---------- Equity (before net income), Group Share 361 434 872 932 Net income, Group Share 70 738 160 350 ---------- ---------- TOTAL EQUITY GROUP SHARE 432 172 1 033 282 Equity (before net income), Non-Group Share 330 511 335 361 Net income, Non-Group Share 57 640 90 512 ---------- ---------- TOTAL EQUITY NON-GROUP SHARE 388 151 425 873 ---------- ---------- PROVISIONS FOR CONTINGENCIES 320 571 329 476 ============================ ---------- ---------- SHORT TERM LIABILITIES 3 758 653 3 535 314 ====================== ---------- ---------- Borrowings (not banks) 528 661 123 682 Banks 399 468 494 736 Advance payments from clients 133 197 148 400 Accounts payable 1 465 410 1 470 605 Interco payable 49 950 24 602 Other creditors 1 181 967 1 273 289 ---------- ---------- OTHER ACCRUALS 73 517 61 134 ============== ---------- ---------- ---------- ---------- TOTAL LIABILITIES & EQUITY 4 973 064 5 385 079 - ------------------------------------------------------------------------------ PUBLICIS COMMUNICATION GROUP P 1/2 CONSOLIDATED STATEMENT OF CHANGE IN FINANCIAL POSITION ( -in thousand FRF)
'000 FRF 1994 1995 SOURCE OF WORKING CAPITAL NET INCOME 128 378 250 861 Depreciation 105 037 110 724 Extraordinary loss 80 000 0 ----------------------- Sub-total 313 415 361 585 Equity earnings of affiliates (46 142) (32 746) Dividends received from affiliates 5 413 50 717 Loan 0 181 137 Other borrowings 144 544 0 Exchange differences & others (7 467) 1 670 ======================= TOTAL SOURCE 409 763 562 363 APPLICATION OF WORKING CAPITAL Paid out dividends 61 508 52 230 Purchase of interest in affiliated companies 23 011 0 Investments 210 819 120 896 Increase in other fixed assets 102 861 112 169 ======================= TOTAL APPLICATION 398 199 285 295 Increase (decrease) in working capital 11 564 277 068 ------ -------
PUBLICIS COMMUNICATION GROUP P 2/2 CONSOLIDATED STATEMENT OF CHANGE IN FINANCIAL POSITION ( -in thousand FRF)
'000 FRF 1994 1995 Increase (decrease) in current assets - ------------------------------------- Cash (85 994) 268 720 Accounts receivables (net) 166 028 (12 999) Expenditure billable to clients 68 765 18 711 Other current assets 100 996 94 682 ----------------------- Sub-total 249 795 369 114 Increase (decrease) in current liabilities - ------------------------------------------ Provision for contingencies 30 028 8 905 Accounts payable 182 097 5 195 Bank borrowings 17 242 95 268 Loans and other borrowings 82 548 (86 116) Other current liabilities (73 684) 68 794 ----------------------- Sub-total 238 231 92 046 Increase (decrease) in working capital 11 564 277 068 - -------------------------------------- ------ -------
PUBLICIS COMMUNICATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 31/12/1995 I. CONSOLIDATION PRINCIPLES. PUBLICIS COMMUNICATION GROUP'S consolidated financial statements as at December 31, 1995 have been prepared in accordance with the French legislation and are in conformity with generally accepted international accounting principles. The consolidated financial statements include the accounts of the Company's wholly owned and majority owned domestic and international subsidiaries. The subsidiary companies with less than 50% ownership are consolidated on an equity basis. The company translates the financial statements of its international subsidiaries into French Francs using official exchange rates as of December 31. II. SUMMARY OF MAJOR ACCOUNTING POLICIES. General : The accounting policies used as at December 31, 1995 are identical to those used in preparing the consolidated financial statements of the Publicis Group. Tangible and Intangible assets: Tangible assets are valued at cost and the depreciation is calculated according to the most suitable method in order to take into account the economical criteria. Listed below are the methods most currently used within the Publicis Communication Group : Building : 20 years straightline Leasehold property and improvements : 10 years straightline Furniture and Equipment : 5-10 years straightline Motor Vehicles : 4 years straightline Premiums paid to acquire marketable leasehold property and the cost of acquired goodwill are not amortized except in cases where the estimated market value is considered to be inferior to the acquisition cost. GOODWILL: - -------- The excess costs over the net book value of subsidiaries, after reallocating potential capital gains to the assets concerned, by their nature, are considered: - - on the one hand, to be intangible assets, justified by elements such as: market shares, trade marks, clients' lists, brands ... Usually they are not amortized. However, each year, a careful examination is made to determine their market value. If their market value is durably inferior to their acquisition cost, a provision for depreciation is made. - - on the other hand, to be unidentified elements amortized over a maximum period of 40 years. In any case, all goodwill of small value are immediately depreciated at 100%. The application of the Sapin Law to a full year period has strongly affected the profitability of our Media buying activities, and could endanger the actual value of goodwill raised on these companies. However, given that the restructuration steps taken up to now allowed this sector to regain its profitability and will have a favorable impact on the following years, Media buying goodwill has not been depreciated. WORK IN PROGRESS: - ---------------- Work in progress is valued at the lower of cost and net realisable value. BILLINGS: - -------- Since March 31, 1993, the Sapin law has been changing the accounting principles applicable to Media Buying activities. In order to be able to show comparable Billings with last year and to be in line with the principles applied by our foreign competitors, our consolidated Media Revenues raised in France have been capitalised using the international multiple of 6,67. RETIREMENT INDEMNITIES: - ---------------------- FRENCH SUBSIDIARIES: - ------------------- Retirement indemnities acquired by employees over 60 years of age appear, with their related social charges, in the provision for contingencies. The yearly movements in the provision for the retirement indemnities shown on the Balance Sheet are accounted for in the yearly expenses. Probable retirement indemnities acquired by employees between 55 and 60 years of age, with their related social charges, are shown in the Contingent Liabilities. Probable retirement indemnities, acquired by employees under 55 years of age are not taken into account due to the high turnover in our profession. Foreign Subsidiaries: -------------------- Retirement indemnities are accrued for in accordance with the laws and regulations specific to each country. Income Tax: ---------- All actual and deferred Income Taxes payable are accounted for. Deferred Income Tax assets or potential fiscal credits are not recognised with the exception of a latent fiscal credit of 36,66% calculated on the provision for the French statutory profit sharing. III) COMMENTS ON THE CONSOLIDATED ACCOUNTS: ------------------------------------- Companies consolidated: ---------------------- Due to the acquisitions of the Contur Group and Sisyphos agency in Germany as well as the Hautefeuille Group in France, the 1995 scope of consolidation has been enlarged. On a constant basis, Publicis Communication's activities would have grown by 2%. Subsidiaries' Contribution in Group activities: ---------------------------------------------- The breakdown of this contribution is as follows:
- -------------------------------------------------------------------------------- Billings Net income Group Share (1) - -------------------------------------------------------------------------------- France 34% 50% Europe 60% 30% USA 6% 20% --------------------------------------------------- 100% 100% - --------------------------------------------------------------------------------
(1) Including results of subsidiaries consolidated on an equity basis. Intangible assets: -----------------
- ------------------------------------------------------------------------------------------------------------- 31/12/1994 Movements 1995 31/12/1995 31/12/1995 ------------------------------------------------------------ ---------- (000 FRF) Gross Acquisitions Disposals Exchange Gross Amortization Net amount and others amount amount - ------------------------------------------------------------------------------------------------------------- Goodwill 573 356 105 221 0 (7 218) 671 359 (22) 671 337 Acquired Goodwill 24 289 5 834 0 0 30 123 (970) 29 153 Software & Others 32 039 4 402 0 0 36 441 (22 013) 14 428 - ------------------------------------------------------------------------------------------------------------- TOTAL 629 684 115 457 0 (7 218) 737 923 (23 005) 714 918 - -------------------------------------------------------------------------------------------------------------
Tangible assets: ---------------
- --------------------------------------------------------------------------------------------------------------------------------- 31/12/1994 Movements 1995 31/12/1995 31/12/1995 ------------------------------------------------------------------------------- ---------- (000 FRF) Gross Acquisitions Disposals Changes in scope Exchange Gross Amortization Net amount of consolidation and others amount amount - --------------------------------------------------------------------------------------------------------------------------------- Land & buildings 39 243 0 0 0 882 40 125 (12 871) 27 254 Others 604 134 111 390 (70 577) 15 175 (18 389) 641 733 (428 222) 213 511 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL 643 377 111 390 (70 577) 15 175 (17 507) 681 858 (441 093) 240 765 - ---------------------------------------------------------------------------------------------------------------------------------
Companies on an Equity basis: ---------------------------- True North Communications, listed on the New York Stock Exchange is included in investments on an equity basis for an amount of KFRF 92 895. Publicis Communication owns 4 658 000 True North Communications shares (20%) whose stock market value was KUSD 86 173 as at December 31st, 1995 and KUSD 94 325 as at February 29th, 1996. Variation in stockholders' Equity: --------------------------------- The variation of the stockholders' equity between December 31st, 1994 and December 31st, 1995 is as follows:
- ------------------------------------------------------------------------------------------------------ (000 FRF) TOTAL Group share Minority share - ------------------------------------------------------------------------------------------------------ Net Equity 31/12/1994 691 945 361 434 330 511 1994 Net Income 128 378 70 738 57 640 ------------------------------------------- Theoritical Equity 31/12/1995 (before 1995 Net Income) 820 323 432 172 388 151 1995 changes: Capital increase of the mother company 500 000 500 000 0 Dividends distributed (48 461) (12 150) (36 311) Exchange differences (16 919) (11 794) (5 125) Changes in companies consolidated and others (46 650) (35 296) (11 354) - ------------------------------------------------------------------------------------------------------ Total Net Equity 31/12/1995 (before 1995 Net Income) 1 208 293 872 932 335 361 - ------------------------------------------------------------------------------------------------------
Net Equity of the Group: ----------------------- The Net Equity of the Group is as follows (000 FRF):
- ------------------------------------------------------------------ Share capital of the mother company 185 000 Reserves of the mother company 435 143 Consolidated reserves 252 789 - ------------------------------------------------------------------ Group's Net Equity as of 31/12/1995 872 932 - ------------------------------------------------------------------
Capital increase: ---------------- In January 1995, a 500 million francs capital increase was made by issuing 500 000 shares, each share having a face value of 100 francs and a share issue premium of 900 francs. True North Communications only subscribed up to 35 million francs and Publicis SA the remaining balance. Since this date, Publicis Communication's ownership is as follows: Publicis SA 79,17% True North Communications 20,83% Provision for contingencies: ---------------------------
- ------------------------------------------------------------------------------- (000 FRF) 31/12/1994 Variation 31/12/1995 - ------------------------------------------------------------------------------- Pensions - Retirement indemnities 113 245 6 293 119 538 Provisions for extraordinary costs - Italy 80 000 (20 775) 59 225 Provisions for litigations 35 903 (1 868) 34 035 Provisions - General risks 13 303 285 13 588 Provisions - Clients risks 37 218 (2 929) 34 289 Other provisions 40 902 27 899 68 801 - ------------------------------------------------------------------------------- TOTAL 320 571 8 905 329 476 - -------------------------------------------------------------------------------
Income Tax: ---------- In 1995, Publicis Conseil benefited from an Income Tax saving, amounting to approximately 12.7 million francs, as a result of the fiscal losses brought by FCAB. As at December 31st, 1995, KF 52 170 ordinary fiscal losses and differed amortization can be carried forward. Exceptional Costs: ----------------- No exceptional item has to be pointed out. Extraordinary Loss: ------------------ The 80 million francs provision for exceptional restructuration costs and partial depreciation of Goodwill related to Italy recorded in 1994 by Publicis FCB Europe has been partially reversed during 1995 for an amount of 20 million francs. Consolidated Cash Flow: ----------------------
- ----------------------------------------------------------------------------- (000 FRF) 1994 1995 % - ----------------------------------------------------------------------------- Consolidated Net Income before extraordinary loss 108 378 250 861 Provision for depreciation 105 037 110 724 Cash Flow 313 415 361 585 15% of which : Group Share 172 881 225 065 30% - -----------------------------------------------------------------------------
Employees: ---------
- -------------------------------------------------------------------------------------------------- 31/12/1994 31/12/1995 % variation 1994/1995 Actual perimeter Constant perimeter - -------------------------------------------------------------------------------------------------- France 1 654 1 816 10% 1% Europe 2 218 2 487 12% 5% USA 283 290 2% 2% - -------------------------------------------------------------------------------------------------- TOTAL 4 155 4 593 11% 3% - --------------------------------------------------------------------------------------------------
Contingent Liabilities: ----------------------
- ----------------------------------------------------------- (000 FRF) Given - ----------------------------------------------------------- Discounted bills not yet matured 3 300 Guarantees 4 443 Pension rights (retirement indemnities) 5 872 Hirer purchase - other lease agreements 5 798 Others 1 559 - ----------------------------------------------------------- TOTAL 20 972 - -----------------------------------------------------------
LISTE DES SOCIETES CONSOLIDEES AU 31 DECEMBRE 1995 A- SOCIETES CONSOLIDEES PAR INTEGRATION GLOBALE
- --------------------------------------------------------------------------------------------------------------------------- % Nom des Societes controle Activite Pays Ville - --------------------------------------------------------------------------------------------------------------------------- 1 - Agences de publicite PUBLICIS COMMUNICATION 100.00 Financiere France Paris Publicis Conseil 99.61 Publicite France Paris FCA/B.M.Z. 100.00 Publicite France Paris Exclamation 100.00 Publicite France Paris Loeb et Associes 55.00 Publicite France Paris Mundocom 100.00 Publicite France Paris Interplans Edition 100.00 Publicite France Paris Procis 89.40 Publicite France Paris Publicis Direct 65.50 Publicite France Paris ID3D 69.88 Publicite France Paris Extension 100.00 Publicite France Paris Publicis Design 100.00 Publicite France Paris Motivom 74.50 Publicite France Paris CRC 100.00 Publicite France Paris Media System 99.66 Publicite France Paris Media System U.K. 100.00 Publicite Grande Bretagne Londres Jonction 80.00 Publicite France Paris Verbe 70.00 Publicite France Paris Publicis Hourra 80.71 Publicite France Lille Epure 99.67 Publicite France Lille Publicis Cachemire 66.93 Publicite France Lyon, Clemont-Ferrand Phreas 99.00 Publicite France Lyon 2eme Communication 51.00 Publicite France Lyon Publicis Mediterranee 100.00 Publicite France Marseille Publicis Soleil 50.25 Publicite France Toulouse, Montpellier Publicis Grand Angle 76.94 Publicite France Brest, Nantes, Rennes Positif 99.80 Publicite France Brest Publicis Grand Est / Koufra 63.32 Publicite France Nancy, Dijon, Strasbourg Publicis Qualigraphie 91.50 Publicite France Rouen, Caen Reseau Graphic 59.62 Publicite France Rouen Publicis Atlantique 95.10 Publicite France Bordeaux Expression 51.00 Publicite France Bordeaux Racines Grand Centre 66.00 Publicite France Tours SKT 70.00 Publicite France Paris Exaudi 99.80 Publicite France Paris Hautefeuille Regions 100.00 Publicite France Lyon Hautefeuille Mediterranee 99.85 Publicite France Nice Hautefeuille Grenoble 100.00 Publicite France Grenoble Hautefeuille Besancon 90.00 Publicite France Besancon O' de Formes 76.00 Publicite France Lyon O' REP FLB 65.00 Publicite France Lyon Hautefeuille Annecy 99.85 Publicite France Annecy Publicis FCB Europe 51.00 Financiere Pays Bas Paris Publicis-FCB 100.00 Publicite Autriche Vienne Publicis-FCB 100.00 Publicite Belgique Bruxelles Cre-Action - Full Option 51.00 Publicite Belgique Bruxelles Publicis-FCB Direct 100.00 Publicite Belgique Bruxelles FCA! BMZ 100.00 Publicite Belgique Bruxelles Publicis FCB 60.00 Publicite Republique Tcheque Prague Publicis-FCB 100.00 Publicite Danemark Copenhague Markkinointi Topitorma 45.03 Publicite Finlande Helsinki FCB SA 100.00 Publicite France Paris Kenya 53.00 Publicite France Paris Empir 100.00 Publicite France Paris Axe Publicite 100.00 Publicite France Paris Empir Media 100.00 Achat d'espace France Paris
- ----------------------------------------------------------------------------------------------------------------------------- % Nom des Societes controle Activite Pays Ville - ----------------------------------------------------------------------------------------------------------------------------- Publicis-FCB Communication 100.00 Financiere Allemagne Dusseldorf B M Z FCA 64.50 Publicite Allemagne Dusseldorf More Sales 100.00 Publicite Allemagne Dusseldorf More Media 90.00 Achat d'espace Allemagne Dusseldorf Publicis 100.00 Publicite Allemagne Francfort Mundocom 100.00 Publicite Allemagne Francfort Mundo Sales 100.00 Publicite Allemagne Francfort Optimedia 100.00 Achat d'espace Allemagne Dusseldorf FCB Hamburg 87.00 Publicite Allemagne Hambourg FCB Direct Marketing 90.00 Publicite Allemagne Hambourg Publicis Vicom 90.00 Publicite Allemagne Francfort B R P Unternehmen Kommunikation 51.00 Publicite Allemagne Dusseldorf Publicis MCD Werbeagentur 74.90 Publicite Allemagne Erlangen, Munich Publicis MCD Messeagentur 50.00 Publicite Allemagne Erlangen, Munich Contur 100.00 Publicite Allemagne Friedrichsdorf Contur Identity Design 100.00 Publicite Allemagne Friedrichsdorf Contec 100.00 Publicite Allemagne Friedrichsdorf Sisyphos 51.00 Publicite Allemagne Berlin Publicis-FCB Magyarorszag 100.00 Publicite Hongrie Budapest Publicis-FCB 97.50 Publicite Italie Milan, Rome FCA! BMZ 100.00 Publicite Italie Milan Optimedia Italia 100.00 Achat d'espace Italie Milan More Media Sri 70.00 Achat d'espace Italie Milan Overad 100.00 Financiere Pays-Bas Amsterdam Publicis-FCB 100.00 Publicite Pays-Bas Amsterdam Publicis-FCB Eindhoven 100.00 Publicite Pays-Bas Eindhoven HVR Advertising 100.00 Publicite Pays-Bas La Haye Mundocom 100.00 Publicite Pays-Bas Amsterdam, Eindhoven Kern Habbema & Yap 53.00 Publicite Pays-Bas Amsterdam Overad Property 100.00 Financiere Pays-Bas Amsterdam Publicis-FCB 84.93 Publicite Norvege Oslo Publicis-FCB Direct 91.00 Publicite Norvege Oslo Strategic Marketing 91.00 Publicite Norvege Oslo Basic 91.00 Publicite Norvege Oslo Publicis-FCB Reklamebyra 91.00 Publicite Norvege Oslo Park Reklamebyra 100.00 Publicite Norvege Oslo Sponsor Marketing 55.00 Publicite Norvege Oslo Rodsten & Werner Film 100.00 Publicite Norvege Oslo Publicis-FCB Polska 78.00 Publicite Pologne Varsovie FCB 83.00 Publicite Portugal Lisbonne Publicis 90.00 Publicite Portugal Lisbonne BMZ/Park 56.44 Publicite Portugal Lisbonne Comunicar 90.00 Publicite Portugal Lisbonne Optimedia 93.00 Achat d'espace Portugal Lisbonne Publicis-FCB 100.00 Publicite Russie Moscou Publicis-FCB Arge 100.00 Publicite Espagne Madrid, Barcelone Optimedia 98.00 Achat d'espace Espagne Madrid Famer Publicis-FCB Werbeagentur 90.00 Publicite Suisse Zurich Bureau d'Etudes Publicitaires BEP 100.00 Publicite Suisse Lausanne M.M.S. 100.00 Publicite Grande-Bretagne Londres Publicis 100.00 Publicite Grande-Bretagne Londres FCB Advertising 100.00 Publicite Grande-Bretagne Londres FCB Impact 100.00 Publicite Grande-Bretagne Londres Mundocom 100.00 Publicite Grande-Bretagne Londres Optimedia International 100.00 Achat d'espace Grande-Bretagne Londres FCA BMZ International 100.00 Publicite France Paris Wam 82.00 Publicite France Paris Lion heart 98.10 Publicite Italie Milan FCA Amsterdam 85.19 Publicite Pays Bas Amsterdam FCB Walker 65.70 Publicite Pays Bas Amsterdam FCA Werner & Messelink 60.00 Publicite Pays Bas Amsterdam FCA London 100.00 Publicite Grande Bretagne Londres CID FCA BMZ 75.00 Publicite Espagne Madrid, Barcelona, Seville Bilbao, Saragosse, Vaience PUBLICIS BLOOM 96.15 Publicite Etats Unis New York, Dallas PUBLICIS CENTRE MEDIA 100.00 Achat d'espace France Paris Credome 99.96 Etudes Medias France Paris PUBLICIS CONSULTANTS 100.00 Publicite France Paris Media Finance 100.00 Publicite France Paris Idees Dialogue Conseil 100.00 Publicite France Paris Publicis Consultants Nederland 93.00 Publicite Pays Bas Amsterdam B- SOCIETES CONSOLIDEES PAR MISE EN EQUIVALENCE True North Communications 20.00 Publicite Etats-Unis Chicago Gnomi FCB 40.00 Publicite Grece Athenes
[MAZARS LETTERHEAD] Cabinet Robert Mazars We have examined the consolidated balance sheet of PUBLICIS COMMUNICATION and subsidiaries as of December 31, 1995 and the related consolidated statements of income, stockholders' equity and changes in financial position of the year in the period ended December 31, 1995. These statements present a new equity (group share) of 872 932 000 FF and a net income (group share) of 160 350 000 FF. Our examination was made in accordance with generally accepted auditing standards and, accordingly, include such tests of the accounting records and other auditing procedures that we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial position of PUBLICIS COMMUNICATION and subsidiaries as of December 31, 1995, and the result of their operations and the changes in their financial position for the year in the period ended December 31, 1995, in conformity with generally accepted accounting principles applied on a consistent basis. Paris, 22 th April 1996 /s/ Frederic Allilaire /s/ Jose Marette Frederic ALLILAIRE Jose MARETTE [MAZARS LETTERHEAD] SIGNATURES PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED. Date: June 28, 1996 True North Communications Inc. /s/ John J. Rezich By: _________________________________ John J. Rezich Controller (Chief Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----