Q4 2021 Interpublic Group of Companies Inc Earnings Call

Good morning, and welcome to the Interpublic Group fourth quarter 2021 conference call.

Speaker 1: Good morning and welcome to the Interpublic Group fourth quarter 2021 conference call. All parties are in a listen-only mode until the question and answer portion of the webinar

All parties are in a listen only mode until the question and answer portion at that time, if you would like to ask a question you May press star one.

Speaker 1: At that time, if you would like to ask a question, you may press star 1.

Speaker 1: This conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to introduce Mr. Jerry Lushni, Senior Vice President of Investor Relations. There you may begin.

This conference is being recorded if you have any objections you may disconnect. At this time I would now like to introduce Mr. Jerry <unk> Senior Vice President of Investor Relations, Sir you may begin.

Speaker 2: Good morning. Thank you for being with us. On our call today, we are joined by our CEO , Felipe Krakowski, and by Alan Johnson, our CFO .

Good morning, Thank you for being with US on our call. Today, we are joined by our CEO Felipe quick housekeeping and by Ellen Johnson our CFO .

Speaker 2: We have posted our earnings release and our slide presentation on our website, intrapublic.com.

We have posted our earnings release, and our slide presentation on our website Interpublic Dot com.

Speaker 2: We will begin our call with prepared remarks to be followed by Q&A and plan to conclude before market open at 9.30 Eastern.

We will begin our call with prepared remarks to be followed by Q&A and plan to conclude before market open at 930 eastern.

During this call we will refer to forward looking statements about our company.

Speaker 2: During this call, we will refer to forward-looking statements about our company.

Speaker 2: These are subject to the uncertainties and the cautionary statement that is included in our earnings release and the slide presentation, and further detailed in our 10-K and other filings with the SEC. You will Also refer to…

These are subject to the uncertainties and the cautionary statement that is included in our earnings release and the slide presentation and further detailed in our 10-K and other filings with the SEC.

We will also refer to certain non-GAAP measures.

Speaker 2: We believe that these measures provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operating performance.

We believe that these measures provide useful supplemental data that while not a substitute for GAAP measures.

Allow for greater transparency in the review of our financial and operating performance.

At this point it is my pleasure to turn things over to Felipe quick housekeeping.

Speaker 2: At this point, it is my pleasure to turn things over to Felipe Krakowski. Thank you, Jerry, and thank you all for joining us.

Thank you Jerry and thank you all for joining us this morning.

I hope you're keeping well.

As usual I'll start with a high level view of our performance in the quarter and for the full year.

Speaker 3: As usual, I'll start with a high-level view of our performance in the quarter and for the full year. Helen will then provide

Allan will then provide additional detail.

Speaker 3: I'll conclude with updates on key developments at our agencies to be followed by Q&A.

I'll conclude with updates on key developments at our agencies to be followed by Q&A.

Speaker 3: We're pleased to share our very strong fourth quarter and full year performance.

We're pleased to share our very strong fourth quarter and full year performance.

Speaker 3: Before turning to the numbers, however, I want to begin by once again thanking our more than 55,000 colleagues around the world.

Before turning to the numbers, however, I want to begin by once again thanking our more than 55000 colleagues around the world.

Their professionalism and dedication continue to be central to another year of outstanding results.

Speaker 3: Their professionalism and dedication continue to be central to another year about standing results.

Our people are delivering on the complex integration of creativity technology and data.

Speaker 3: Our people are delivering on the complex integration of creativity, technology, and data to clients across industry...

Clients across industry sectors and around the world.

This in turn is driving the consistent levels of growth and margin that have distinguished interpublic for a number of years now.

Speaker 3: This, in turn, is driving the consistent levels of growth and margin that have distinguished in our public for a number of years now.

Turning to our results in the fourth quarter, our organic net revenue growth was 11, 7%.

Speaker 3: That's against the fourth quarter of 2020, when, as you'll recall, our organic change was negative 5.4% due to the impact of the pandemic.

That's against the fourth quarter of 2020, when as Youll recall, our organic change was negative five 4% due to the impact of the pandemic.

Speaker 3: It's also important to note that our two-year organic increase with positive 5.7% relative to the fourth quarter of 2019, which is a very strong underlying trend.

It's also important to note that our two year organic increase was positive five 7% relative to the fourth quarter of 2019, which is a very strong underlying trend line.

Speaker 3: For the full year, organic growth was 11.9% and two year organic growth was 6.5%.

For the full year organic growth was 11, 9% in two year organic growth was six 5%.

Compared to 2020 growth in the quarter was again broad based across world regions and client sectors.

Speaker 3: Compared to 2020, growth in the quarter was again broad-based across world regions and client sex.

Speaker 3: Organic growth was 12.1% in the US and 11% in our international markets.

Organic growth was 12, 1% in the U S and 11% in our international markets.

Among client sectors, we were led by double digit percentage increases in our other sector of public industrial and services clients.

Speaker 3: Among client sectors, we were led by double digit percentage increases in our other sector of public, industrial and services clients.

As well as double digit growth in the retail auto financial services and tech and telecom sectors.

Speaker 3: As well as double digit growth in the retail, auto, financial services, and tech and telecom.

Speaker 3: We had strong growth again in healthcare and consumer goods.

We had strong growth again in health care and consumer goods.

Speaker 3: Staying in the quarter, both of our operating segments also grew at double digit rates.

During the quarter both of our operating segments also grew at double digit rates.

Speaker 3: Our IAN segment increased 11.2% organically, and there we were led by our media, data, and technology offerings.

Our <unk> segment increased 11, 2% organically.

And there we were led by our media data and technology offerings.

Speaker 3: CAN, Mullen Load Group, FCB, RGA, and HUGE.

And Mccann.

Alan Lowe group FCB.

RGA and huge.

Speaker 3: And our dexterous segment, organic growth was 15.1%. Reflecting strong increases by Jack Morton and Octagon, two of our offerings that were hardest hit by the pandemic a year ago.

But our dextra segment.

Organic growth was 15, 1%, reflecting strong increases by Jack Morton and Octagon two of our offerings that were hardest hit by the pandemic a year ago.

Speaker 3: We also had strong performance by Weber Shandwick, Colin and Future Bray.

We also had strong performance by Weber Shandwick.

And in future brand.

Turning to profitability expenses, our teams continued their disciplined execution.

Speaker 3: Turning to profitability expenses, our teams continued their disciplined execution.

Speaker 3: And we were able to continue to invest in supporting our growth and further evolving our

And we were able to continue to invest in supporting our growth and further evolving our offerings.

Speaker 3: Fourth quarter net income was 367.9 million as reported.

Fourth quarter net income was $357 9 million as reported.

Our adjusted EBIT was $491 8 million.

Speaker 3: Our adjusted EBIT was 491.8 million.

Speaker 3: which is before an adjustment in the quarter relating to the 2020 restructuring program and our margin was 19.3%.

As before an adjustment in the quarter relating to the 2020 restructuring program.

And our margin was 19, 3%.

Speaker 3: That brings full year adjusted EVIT-A to $1.53 billion and our margin is 16.8%.

That brings full year adjusted EBIT to.

To $153 billion and our margin of 16, 8%.

Speaker 3: Consistent with the expectation we share with you in our October up.

Consistent with the expectation we shared with you in our October update that.

Speaker 3: that compares to margin of 13.5% a year ago and 14% in 2019.

That compares to margin of 13, 5% a year ago and 14% in 2019.

As has been the case throughout the pandemic there were more than the usual number of moving pieces in our expense base this quarter.

Speaker 3: As has been the case throughout the pandemic, there were more than the usual number of moving pieces in our expense base this quarter.

Speaker 3: Our strong results led to significant increase in performance-based compensation as you'd expect.

Our strong results led to a significant increase in performance based compensation as you would expect.

Expense for severance was also elevated.

Speaker 3: The expense for severance was also elevated, and that reflects actions that we chose to take during the fourth quarter to further improve the efficiency of our operations and to benefit our expense base going forward.

And that reflects actions that we chose to take during the fourth quarter to further improve the efficiency of our operations and benefit our expense base going forward.

Speaker 3: Compared to last year, we delivered our expense for base payroll in the quarter.

Compared to last year, we delivered on our expense for base payroll in the quarter.

And that comparison reflects the temporary pay reductions and we're still in effect a year ago put in place due to the pandemic and which expired at the end of 2020.

Speaker 3: And that comparison reflects the temporary pay reductions that were still in effect a year ago, put in place due to the pandemic, and which expired at the end of 2020.

Speaker 3: as well as increased investment in college in 2021, largely to support our growth, but also due to tighter market.

As well as increased investment in talent in 2021.

Largely to support our growth, but also due to tighter market conditions.

Speaker 3: For the full year, we had strong operating leverage on payroll.

For the full year, we had strong operating leverage on payroll expense.

Our expense for temporary labor increase from a year ago as a direct result of our very strong revenue growth.

Speaker 3: our expense for temporary labor increased from a year ago as a direct result of our very strong revenue.

We've made significant progress in staffing to levels consistent with revenue.

Speaker 3: We've made significant progress in staffing to levels consistent with revenue. So that's the cost that should have been...

So thats a cost that should abate going forward.

Going the other way and our office and other expense, we had significant leverage on our expense for occupancy.

Speaker 3: During the other way, in our office and other expense, we had significant leverage on our expense for occup-

Speaker 3: Our bad death expense decreased from a year ago, while our travel-related expenses continue to track at a very low level relative to our longer history. But they were at higher levels than last year's fourth quarter.

Our bad debt expense decreased from a year ago, while our travel related expenses continue to track at very low levels relative to our longer history.

Were at higher levels than last year's fourth quarter.

Speaker 3: Fourth quarter deluded earnings per share with 90 cents as reported and with 82 cents as a justice for several items.

Fourth quarter diluted earnings per share was <unk> 90, <unk> as reported and was 82.

As adjusted for several items.

Speaker 3: In sum, our fourth quarter completes a year of very strong financial performance against the key metrics of growth, adjust to David Augh and earnings per share.

And some are fourth quarter completes a year of very strong financial performance.

Against the key metrics of growth adjusted EBIT and earnings per share.

Speaker 3: Further, we paid our maturing 500 million senior notes in October from cash. As we continue to program a significant financial deleverging related to the axiom transaction in 2018.

Further we paid our maturing 500 million senior notes in October from cash as we continue to program a significant financial deleveraging related to the axiom transaction in 2018.

Speaker 3: In acquiring axiom, we have grown EBITDA, paid down debt, and strengthened operating cash resulting in material improvements to all key credits.

Since acquiring axiom, we've grown EBIT D a.

Pay down debt and strengthen operating cash flow, resulting in material improvements to all key credit metrics.

Reflecting on the fact that since 2017, our last full year prior to axiom.

Speaker 3: Bristler's reflecting on the fact that since 2017, our last full year prior to...

Speaker 3: We've grown our adjusted ebit by 574 million.

Our adjusted EBIT by $574 million.

Speaker 3: a full 60% to $1.53 billion.

60% to 153 billion.

Speaker 3: Over the same four year period, we expanded adjusted margin by 400 basis points from 12.8 to 16.8%.

Over the same four year period, we've expanded adjusted margin by 400 basis points from 12 eight to 16, 8%.

Speaker 3: And we've driven compounded organic growth of 16% over those four years, marking significant outperformance compared to our direct industry competitors.

And we've driven compounded organic growth of 16% over those four years.

Working significant outperformance compared to our direct industry competitors.

Our growth there.

Speaker 3: Her growth, therefore, reflects more than the cyclical economic recovery.

Therefore reflect more than the cyclical economic recovery that we're seeing.

Speaker 3: We're successfully helping to move the business transformation journeys or acclimes forward.

We're successfully helping to move the business transformation journeys of our clients forward.

By delivering addressable and accountable marketing programs that are increasingly integrated with our world class creative storytelling capabilities.

Speaker 3: by delivering addressable and accountable marketing programs that are increasingly integrated with our world class creative storytelling kids.

Confused with data and technology are solutions are driving higher valued client relationships.

Speaker 3: Confused with data and technology, our solutions are driving higher value client relationship.

Speaker 3: As marketers seeking growth amid a rapidly changing complex landscape, look to adapt and enhance

As marketers seeking growth amid a rapidly changing complex landscape.

Look to adapt and enhance their business models.

Speaker 3: the success of our clients as well as our own performance.

The success of our clients as well as our own performance.

Validate our long standing strategic focus and investments.

Speaker 3: Validate our longstanding strategic focus and investments and underscore

And underscore the.

Speaker 3: a caliber of talent and client focus of our operating.

The caliber of talent and client focus of our operating teams.

Speaker 3: Fending into 2020, we're confident that the continuing strength of our offerings has its well-position.

Heading into 2020, we're confident that the continuing strength of our offerings has us well positioned.

In an environment of dynamic change for media and marketing.

Speaker 3: in an environment of dynamic change for media and marketing coupled with the solid

Which is coupled with a solid global macroeconomic environment.

Speaker 3: Of course, we are aware that the year ahead is uncertainties and challenges. COVID, to inflation and geopolitical risk.

Of course.

We are aware that the year ahead as uncertainties and challenges.

Covid to inflation and geopolitical risk.

Speaker 3: Yes, as we look ahead, we anticipate that 22 will be another year of strong growth. On top of multi-year...

Yes, as we look ahead, we anticipate the 'twenty two will be another year of strong growth.

On top of multi year industry, leading comparables.

As such we are targeting full year organic revenue growth of 5% in 2022.

Speaker 3: As such, we are targeting full-year organic revenue growth of 5% in 2022.

And with that level of growth, we expect that in 2022, we will consolidate the very significant gains achieved an adjusted EBIT margin over the past 24 months.

Speaker 3: In 2022, we will consolidate the very significant gains achieved in adjusted EBIT on margin over the past 24 months at a level of approximately six

At a level of approximately 16, 6%.

Our margin target incorporates a number of puts and takes as operations begin to normalize to a mostly post COVID-19 world.

Speaker 3: A margin target incorporates a number of puts and takes, and operations begin to normalize to a mostly post-COVID world.

Speaker 3: Certain expenses that have been running at unusually low levels during the pandemic should begin to return the levels closer to their historic norms. These include our travel and related costs and business development expenses, both of which are investments that build the future growth of the business.

Certain expenses that have been running at unusually low levels during the pandemic should begin to.

Return to levels closer to their historic norms. These include our travel and related costs and business development expenses.

Both of which are investments to build the future growth of the business.

In light of the current environment.

Speaker 3: Light of the current environment, our outlook also includes a modest inflationary impact on our investment in employee compensation this year, which we're actively managing to support our strong growth.

Outlook also includes a modest inflationary impact.

On our investment in employee compensation this year, which we're actively managing to support our strong growth.

This is consistent with what I believe we're all seeing reported across a broad range of industries.

Speaker 3: This is consistent with what I believe we're all seeing reported across a broad range.

Speaker 3: We anticipate that our expense for employee performance based incentives will retrace.

We anticipate that our expense per employee performance based incentives will retrace.

Speaker 3: and follow within a more normalized range, consistent with our longer term history.

Can fall within a more normalized range consistent with our longer term history.

Speaker 3: that will help offset the trends in other categories.

That will help offset the trends in other categories.

We also expect to continue to see the structural benefits of.

Speaker 3: We also expect to continue to see the structural benefits of our 2020 cost.

Our 2020 cost actions.

Speaker 3: most of which we saw in 2021 and which will continue to be evident going forward.

Most of which we saw in 2021, and which will continue to be evident going forward.

Further we expect that the underlying healthy incremental margins generated with revenue growth, which we've consistently delivered over a period of many years is a factor that remains at play.

Speaker 3: Further, we expect that the underlying healthy incremental margins generated with revenue.

Speaker 3: which we've consistently delivered over a period of many years is a factor that remains at play.

Speaker 3: With that, under 5% organic revenue growth, we expected just it even on margin of approximately 16.6% in 2022, and then continued opportunity to further expand margins with growth in the years ahead.

With that under 5% organic revenue growth, we expect adjusted EBITDA margin of approximately 16, 6% in 2022.

And then continued opportunity to further expand margins with growth in the years ahead.

Turning now to capital allocation, we are positive developments to share as well.

Speaker 3: Turning now to capital allocation, the appositive developments to share as well. Given the continuing strength.

Given the continuing strength of our operating results we've announced.

Speaker 3: We've announced this morning our board's decision to once again raise IPG's quarterly dividend.

This morning, our board's decision to once again raise ipg's quarterly dividend.

Speaker 3: by 7% to 29 cents per share.

7% to <unk> 29 per share.

Speaker 3: that marks our 10th consecutive year of uninterrupted higher dividends, which continued through the period of pandemic. They're also...

This marks our 10th consecutive year of uninterrupted higher dividends, which continued through the period of pandemic.

We're also pleased to resume our share repurchase program.

Speaker 3: Your recall, we have suspended share repurchase following our announcement of the Actium Transaction in order to focus more of our resources on financial delivery.

Recall, we had suspended share repurchase following our announcement of the axiom transaction in order to focus more of our resources on financial deleveraging.

We are now resuming the program under an authorization of our board of up to $400 million.

Speaker 3: When now resuming the program under an authorization of our board of up to $400 million.

Speaker 3: And while we restart the program, we do plan to continue our commitment to operating in a manner that will maintain and enhance our balance sheet and financial flexibility, as well as our debt credit.

And while we restart the program we do plan to continue our commitment to operating in a manner that will maintain and enhance our balance sheet and financial flexibility.

<unk> our debt credit ratings.

On that note. This seems like an appropriate time to hand, the call to Alan for more in depth view of our results.

Speaker 3: On that note, this seems like an appropriate time to hand the call to Ellen, more in-depth view of our...

Speaker 4: Thank you. I hope that everyone is safe and healthy. I would like to join the police and thank our people for their terrific accomplishments.

Thank you I hope that everyone is safe and healthy and I would like to join for Lee and thank our people protect terrific accomplishment.

Speaker 4: As a reminder, my remarks will track the presentation slides that accompany our

As a reminder, my remarks will track the presentation slides that accompany our webcast.

Beginning on slide two of the presentation fourth quarter net revenue increased 11, 6% from a year ago with organic growth of 11, 7%.

Speaker 4: Beginning on slide two of the presentation, fourth quarter net revenue increased, 11.6% per cent from a year ago, with an organic growth of 11.7%. Separating organic growth for the year to 11.9%. And two year growth to 6.5%. Again, at the top of our industry.

That brings organic growth for the year to 11, 9%.

Two year growth to six 5% again at the top of our industry.

Adjusted EBITDA in the quarter with before restructuring adjustment to our 2020 program with $491 8 million and margin on net revenue was 19, 3%.

Speaker 4: Adjusted the EPA in the quarter was before a restructuring adjustment to our 2020 program with 491.8 million. And margin on net revenue was 19.3%

Speaker 4: Deluted earnings for share is 90 cents as recorded and 82 cents as adjusted to exclude the restructuring charge. The aftertax impact to the amalgamation of acquired and tabbed.

Diluted earnings per share with 90% as reported and <unk> as adjusted.

The restructuring charge the after tax impact of the amortization of acquired intangibles.

Speaker 4: a small non-operating loss in business decisions and the tax benefits of a net valuation reverse.

Operating loss for business dispositions, and the tax benefit or a net valuation reversal.

Speaker 4: We concluded the year in a strong cash position with $3.3 billion on the balance sheet, and with 1.6 times gross financial debt to EBITDA as defined in our credit.

We concluded the year in a strong cash position of $3 3 billion on the balance sheet, how much one six times gross financial debt to EBITDA as defined in our credit facility.

Speaker 4: Our board increased our quarterly dividend to 29 cents. And we are pleased to resume Sherry purchase of this year under a new $400 million authorization.

Our board increased our quarterly dividend to <unk> 29.

We are pleased to resume share repurchases this year $400 million.

Thank you Shannon.

Speaker 4: Turning to slide three, you'll see our TML for the quarter. I'll cover revenue and operating expenses in detail in the slide step-on.

Turning to slide three you'll see our P&L for the quarter.

Cover revenue and operating expenses in detail in the slides that follow.

Turning to the fourth quarter and full year revenue on slide four.

Speaker 4: Turning to the fourth quarter in Folio revenue on slide four. Our net revenue in the quarter was 2.55 billion, an increase of 264.5 million from a year ago.

Net revenue in the quarter to five 5 billion, an increase of $264 5 million from a year ago.

Speaker 4: Compared to Q4R 2020, the impact of the change in exchange rate was positive 20 days.

<unk> to Q4 2020, the impact of the change in exchange rates was positive 20 basis points.

Net divestitures with negative 30 basis points, which reflects our disposition of certain small non strategic agencies.

Speaker 4: Nets of astigers were negative 30 basis points, which reflects their disposition of certain small non-strategic agents.

Speaker 4: Organic net revenue increase was 11.7 percent, which at the right on this slide brings us to 11.9 percent for the full year.

Organic net revenue increase of 11, 7%, which is the right on this slide brings us to 11, 9% for the full year.

Speaker 4: At the bottom of the slide, we break out segments revenue in the quarter and the year. We had double digit growth in both segments.

At the bottom of the slide we breakout segment revenue in the quarter and the year.

We had double digit growth in both segments in the quarter. Our Ian segment grew 11, 2% organically, we had notably strong growth across our offerings.

Speaker 4: In the quarter, our E and segments grow 11.2% organically. We have notably strong growth across our office.

Speaker 4: IP and IPG Dextra Organic Growth with 15.1%. Similarly, reflecting double digit growth across all major marketing services disciplines.

At IPG to extra organic growth was 15, 1%.

Similarly, reflecting double digit growth across all major marketing services disciplines.

Worth, noting here that beginning with this years first quarter report, we will introduce new reportable segments.

Speaker 4: We're noting here that beginning with this year's first court of report, we will introduce new reportable segments.

Speaker 4: Increasing the number of segments from 2 to 3.

Increasing the number of segments from two to three.

Speaker 4: Our new segments reflect changes to how we run the business. In order to help further the value of our services, to reflect the evolution of our markets, and organize IPG around expanded capabilities, opportunities, and scale.

Our new segments reflect changes to how we run the business.

To help further the value of our services to reflect the evolution of our market and organize the IPG and expanded capabilities.

<unk> and scale.

Speaker 4: or segment recording will be reformulated for these changes and provide an updated view of IPG.

Segment reporting will be re formulated for these changes and provide an updated view of ITG.

Speaker 4: We will have more to share about our new segments at the time of our first quarter report in April .

We will have more to share about our new segments at the time of our first quarter report in April .

Speaker 4: Moving on to slide five, our revenue growth, five region in the quarter.

Moving on to slide five our revenue growth by region in the quarter.

Speaker 4: The UF grew 12.1% organically against a decrease of 1.8% in New York.

The U S grew 12, 1% organically against the decrease of one 8% a year ago.

Speaker 4: Performance was strong across both our EN and Dexter segments and with broad-based and cross client sex.

Performance was strong across both our Ian and <unk> segments and was broad based across client sectors.

Speaker 4: U.S. with 61% of our net revenue in the quarter, and 63% for the full year.

The U S was 61% of our net revenue in the quarter and 63% for the full year.

Speaker 4: International markets were 39% burnt at revenue in the quarter and increased to 11% organic.

International markets were 39% of our net revenue in the quarter, an increase of 11% organically.

Speaker 4: The overall cost of the same market decreased 10.5% in Europe .

Youll recall that the same markets decreased 10, 5% a year ago.

Speaker 4: The UK increased 6.2% organically, led by our offerings in media, data and text by McCann and by IPG Dextra.

The U K increased six 2% organically led by our offerings in media data and tech by Mccann and by IPG deck Scott.

Speaker 4: Constantly Europe grew 6% which recites increases across all of our largest national markets. That includes Germany, Spain, Italy, France, and the Netherlands.

Continental Europe grew 6%.

Cost increases across all of our largest national market that concludes Germany, Spain, Italy, France, and the Netherlands.

Asia Pac increased nine 7% organically with strong performance in Australia, Singapore, India, and Japan, China decreased from a year ago.

Speaker 4: Asia-Pac increased 9.7% organically. The strong performance in Australia, St. Nguyen, India, and Japan, China decreased from a year ago.

Speaker 4: In last time, we continue to see exceptional results with organic growth of 22.5% in the quarter. Columbia, Argentina, Brazil, and Chile are all notably strong.

In Latam, we continue to see exceptional results with organic growth of 22, 5% in the quarter, Colombia, Argentina, Brazil, and Chile, all notably strong.

Our other international markets group, which consists of Canada, and the Middle East and Africa.

Speaker 4: Our other international markets group, which consists of Canada and the Middle East and Africa, go 18.7% organically, which reflects double digit growth across each of those markets. Moving on to slide.

18, 7% organically, which reflects double digit growth across each of those markets.

Moving on to slide six and operating expenses.

Speaker 4: A fully adjusted evitant margin for the year was 16.8%. Compared to 13.5% in 2020 and 14% in 2019.

A fully adjusted EBIT margin for the year was 16, 8% compared to 13, 5% from 2020 and 14% in 2019.

Fourth quarter margin was 19, 3% compared with 21, 8% a year ago.

Speaker 4: Borscht-Hortomargin was 19.3% compared to 21.8% in year ago.

As you can see on this slide our ratio of total salaries and related expense as a percentage of net revenue was 62, 2%.

Speaker 4: As you can see on this slide, a ratio of total salaries and related expense as the percentage of net revenue was 62.2%. Compared with 58.9%, when last year's fourth quarter, when temporary pay reductions were still in place for some of our senior teams.

Compared with 58, 9% in last year's fourth quarter, when temporary pay reductions for sell in place for some of our senior teams.

Speaker 4: Our expense for employee performance-based and incentive compensation was also notably lower a year ago, as was our expense for seven.

Our expense per employee performance based incentive compensation was also notably lower a year ago as was our expense for severance.

Speaker 4: We continue to see the benefit of our 2020 strategic restructuring action.

We continue to see the benefit of our 2020 strategic restructuring actions.

Speaker 4: which you may recall resulted in the elimination of 1,500 positions globally, as well as a 15% reduction to our real estate.

You may recall resulted in the elimination of 1500 positions globally.

As well as a 15% reduction to our real estate footprint.

Speaker 4: Our office and other direct expense decreased as a percent of net revenue by 90 basis points, 15.1%. That mainly reflects lower occupancy expense, through the restructuring of our real estate, and leverage on our growth.

Our office and other direct expense decreased as a percent of net revenue by 90 basis points to 15, 1%.

That mainly reflects lower occupancy expense.

Restructuring of our real estate and leverage on our growth.

Speaker 4: We also reduced all other office and other direct expense some pair to last year as a percent of revenue.

We also reduced all other office and other direct expense compared to last year as a percent of revenue.

Speaker 4: The truth is, lower expense for bad debt and leverage on a revenue growth. While travel and related expenses, which are still not back to pre-pandemic levels, they were higher in the year.

Which reflects lower expense for bad debt and leverage on our revenue growth.

While travel and related expenses, which are still not back to pre pandemic levels, they were higher than a year ago.

Our SG&A expense was one 3% of net revenue an increase of 30 basis points.

Speaker 4: Our SGNA expense was 1.3% of net revenue, an increase of 30 bases.

Slide seven depicts our operating leverage for the full year the same category.

Speaker 4: Slide 7 depicts an operating leopard for the pro-year by the same category.

16, 8% margin in 2021, we have 330 basis points of operating leverage compared to 2020.

Speaker 4: 16.8% margin in 2021. We have 330 basis points of operating leverage compared to 2020.

Speaker 4: As you can see on this slide, we improved our salary in related ratio by 70 basis points.

As you can see on this slide the improved our salary and related ratio by 70 basis points and it has 300 basis points of leverage on our office and other direct expense.

Speaker 4: and have 300 basis points of leverage on our office and other direct expense.

Our SG&A expense Deleveraged by 60 basis points.

Speaker 4: Our S-TNA expense due leverage by 60 basis points.

Turning to slide eight please present detail on adjustments to our fourth quarter results.

Speaker 4: Turning to slide 8, please present a detail on adjustments to our fourth quarter result in order to give you better transparency and a picture of comparable performance.

In order to give you better transparency and a picture of comparable performance.

Speaker 4: This begins on the left hand side with a reported result and steps through to adjust the DVTA, excluding restructuring and our adjusted deluded EPS.

This begins on the left hand side with our reported results.

And steps through to adjusted EBITDA, excluding restructuring.

Adjusted diluted EPS.

Speaker 4: are expense for the amortization of a slide in tangible in the second column with 21.5 million.

Our expense for the amortization of acquired intangibles and the second column with $21 5 million.

The restructuring adjustments was $13 million and the related tax benefit was $2 9 million.

Speaker 4: The restructuring adjustments was 13 million and the related tax benefits was 2.9 million.

Speaker 4: Below operating expenses in column four, we had a small loss in the quarter of the 800,000 in other expenses. Due to the disposition of a new small, non-strategic business.

Below operating expenses in column four we had a small loss in the quarter of 800000 in other expense due to the disposition of a few small non strategic businesses.

Speaker 4: To the right, you can call them five on this slide. We have 59.4 million tax benefit in the quarter.

To the right and column five on this slide we had $59 4 million tax benefit in the quarter.

Speaker 4: which is mainly due to the reversal of the tax valuation allowance in one of our European markets. This is the result of sustained profitability improvement. The benefit was...

Which is mainly due to the reversal of the tax valuation allowance and one of our European markets.

As a result of sustained profitability improvement.

The benefit was <unk> 15 per diluted share.

At the foot of the slide you can see the after tax impact per diluted share of each of these adjustments, which bridges our diluted EPS as reported at 90.

Speaker 4: At the front of the slide, you can see the after-tax impact for diluted share of each of these adjustments, which for those are diluted EPS as reported at 97 to adjusted earnings of 82 cents per diluted share.

To adjusted earnings of 82 cents per diluted share.

Slide nine depicts similar adjustments for the full year again for continuity and comparability.

Speaker 4: So I'd like to pick similar adjustments for the full year, again for continuity and comparable.

Speaker 4: Our Amortization expense with 86.2 million.

Our amortization expense was $86 2 million.

Speaker 4: are charged for restructuring with 10.6 million.

Our charge for restructuring was $10 6 million.

Speaker 4: Disposition over the course of the year is up to then a book off of 13.3 million.

Dispositions over the course of the year resulted in a book loss of $13 3 million.

Speaker 4: As you've seen, the net impact of tax valuation allowance reversal was a benefit of 59.4 million.

As you've seen the net impact of tax valuation allowance reversal was a benefit of $59 4 million.

Speaker 4: The law on fairly extinguishing of death in the first quarter with 74 million.

Ross earlier.

Early extinguishment of debt in the first quarter was $74 million.

Speaker 4: The result is a adjusted full year duly-duty P.S. $2.60, an increase of 50% over comparable duly-duty P.S. in 2020.

The result is adjusted full year diluted EPS of $2 60.

An increase of 50% of our comparable diluted EPS in 2020.

Speaker 4: Note that our adjusted effects of test rate for the full year was 25%, which is better than we anticipated to just stronger than expected profitability and lower tax jurisdictions.

Note that our adjusted effective tax rate for the full year was 25%, which is better than we anticipated due to stronger than expected profitability in lower tax jurisdictions.

On slide 10, we turn to cash flow for the quarter.

Speaker 4: Cash from Operations with 2.08 billion, which is the highest level in our company's history.

Cash from operations with $2 8 billion, which is the highest level in our company's history that.

Speaker 4: That compares to 1.85 billion a year ago.

That compares to $185 billion a year ago.

Speaker 4: Task for working capital was 743.4 million. Another strong result for the full year, following 900.1 million in 2020 and 443 million in 2019.

Cash from working capital was $743 4 million. Another strong result for the full year by $900 1 million in 2020 and $443 million in 2019.

A few factors contributed to our strong working capital results. Most notably we had again had strong growth and disciplined Chen to generate cash from working capital.

Speaker 4: A few factors contributed to our strong working capital result. Most notably, we had again, had strong growth in disciplines that attend to generate cash from working capital.

Speaker 4: Also, our accrual for our performance-based incentive compensation programs increased when compared to 2020. As we pointed out in the past, working capital can be volatile and it's highly seasonal component of our total capital.

Also our accrual for our performance space incentive compensation program increased when compared to 2020.

As we pointed out in the pack working capital can be volatile and it's highly seasonal component of our total capstone.

Speaker 4: We have continued to invest in in-flight and capabilities in this important area for Aubrey.

We have continued to invest in insight and capabilities in this important area of our operation.

Our investing activities used $185 3 million in the year, mainly reflecting capex of $195 3 million.

Speaker 4: Our investing activities use 185.3 million in the year, mainly reflecting cat-backs of 195.3 million.

Speaker 4: Our financing activities use 1.08 billion representing our paydown of debt and our common stock.

Our financing activities used $1 8 billion, representing our paydown of jet.

Common stock dividends.

Speaker 4: A net increase in cash for the year with $760.7 million. Slide on.

Our net increase in cash for the year was $767 million.

Slide 11 is the current portion of our balance sheet. We ended the year with $3 3 billion of cash and equivalents.

Speaker 4: We ended the year with 3.3 billion of cash in the clothes.

Speaker 4: slides allow to pick the maturities of our outstanding death and our diversified maturity schedule.

Slide 12 depicts the maturities of our outstanding debt and our diversified maturity schedule.

Speaker 4: Having paid off 500 million of the October senior notes, total data year end, the three billion.

Having paid off $500 million of the October senior notes total debt at year end with $3 billion.

In summary on slide 13, our teams continue to execute at a high level I.

Speaker 4: In summary, on 13, the teams continue to execute at a high level.

Speaker 4: I would like to again recognize accomplishments of our people and especially their performance over the last two years in an unprecedented environment.

I would like to again recognize the accomplishments of our people and especially their performance over the last two years in an unprecedented environment.

The strength of our balance sheet and liquidity have us well positioned to continue our track record of profitable growth and with that I'll turn it back to Felipe.

Speaker 4: The strength of our balance sheet and liquidity have us well positioned to continue our track record of profitable growth. And with that, I'll turn it back to police.

Speaker 3: Thank you, Ellen. As you can see from our strong results, the combination of strategy, talent, and culture we've built through IPG.

Thank you Alan.

As you can see from our strong results the combination of strategy talent and culture, we've built to IPG.

Speaker 3: Continuous to drive innovation, collaboration, and creativity that fuel clients success.

To drive innovation collaboration and creativity.

<unk> client success.

Speaker 3: Previously, we've discussed the ways in which the pandemic accelerated. Technology-driven shifts in media and consumer behavior that IPG had anticipated and invested in going back for quite a few years.

Previously we discussed the ways in which the pandemic accelerated technology driven shifts in media in consumer behavior.

That IPG had anticipated and invested in going back for quite a few years.

As marketers increasingly look for partners with expertise and first party data management.

Speaker 3: As marketers increasingly look for partners with expertise in first party data management.

Performance media creative AD Tech and direct to consumer Commerce, we remain.

Speaker 3: performance media, creative ad tech, and direct to consumer commerce, we remain well positioned with a range of expertise that can help our clients win in the digital economy.

Well positioned with a range of expertise that can help our clients win in the digital economy.

Throughout 2021, our best in Class Agency brands, we are increasingly able to tap into Ipg's foundational technology and data lakes include.

Speaker 3: Throughout 2021, our best in class agency brands were increasingly able to tap into IPG's foundational technology and data lake.

Speaker 3: Inclusive of axiom, kinesso, and mattertongue. Across disciplines.

Inclusive of axiom can esso and matter of time.

Across disciplines channels and use cases. This democratization of data is contributing to a growing range of effective client solutions and outcomes.

Speaker 3: This democratization of data is contributing to a growing range of effective client solutions and help.

Speaker 3: We also remain highly focused and capable of delivering highly customized integrated teams, which we call open architecture teams, that are specific to client needs, all of them backed by this strong and deep data and tech capability.

We also remain highly focused and capable of delivering highly customized integrated.

Teams, which we call open architecture teams that are specific to client needs all of them backed by the strong and deep data and tech capabilities.

Speaker 3: And this ability to integrate disciplines and expertise fills on the creative excellence of our brandy day.

And this ability to integrate disciplines and expertise and builds on the creative excellence of our branded agencies.

Speaker 3: In 2021, this combination helps us to be named Holding Company of the Year at the New York Festival's Advertising Awards and Creative Holding Company of the Year by the one... The Year at the New York Festival's Advertising Awards and Creative Holding Company of the Year by the one...

In 2021, this combination helps us to be named holding company of the year at the New York festivals advertising Awards.

Date of holding company of the year by the one club.

We were also recognized as the most effective holding company at the U S SC Awards.

Speaker 3: We were also recognized as the most effective holding company at the US SEA award.

And now drilling down and looking at specific highlights from the quarter. I think results were led by our media data and technology offerings within media, where we continue to see major changes in the digital ecosystem.

Speaker 3: And now it's rolling down and looking at specific highlights from the quarter. I think results were led by our media data and technology.

Speaker 3: within media where we continue to see major changes in the digital ecosystem. Marketers require partners who are well-resourced and who have the right tools to realize the benefits of increasingly addressable media, investment in e-commerce channels, and a deep

Marketers require partners, who are well resource and who have the right tools to realize the benefits of increasingly addressable media.

Investment in e-commerce channels.

And a deep granular understanding of audiences.

Speaker 3: That's why with our consultative media model, we continue to see strong growth in the sex.

That's why with our Consultative media model, we continue to see strong growth in the sector.

Media brands is once again a leader during the quarter, we saw a significant global win AUM with Dyson.

Speaker 3: Media Brands was once again a leader. During the quarter we saw a significant global win at UM with Dyson.

Speaker 3: The new M offers successfully defended its H&M and Henkel business.

<unk> also successfully defended his <unk> and henkel business.

Was named a best place to work by AD age in January and also quite recently won the Grub public count in the highly competitive review.

Speaker 3: was named a best place to work by ad age in January and also quite recently won the Grubb Public Count in a highly competitive review.

Initiative closed out a very strong year with a Q4 win of Quickbooks domestically.

Speaker 3: initiative closed out a very strong year for the Q4 win of QuickBooks domestically as well as being named by ING Group as its media partner in the number of key international markets.

As well as being named by IMG group as its media partner in a number of key international markets.

Our data and technology assets inclusive of axiom continue to be strong contributors to how we operate and to our growth.

Speaker 3: Our data and technology assets, inclusive of axiom, continue to be strong contributors to how we operate and to our growth.

Speaker 3: our agency's predictive analytics tools are built in collaboration with ACTIM and they can optimize the consumer journey with a foundation that's built on identity resolution, which delivers experiences across all touch points with timeliness and precision.

Our agencies predictive analytics tools are built in collaboration with axiom.

They can optimize the consumer journey with a foundation, that's built on identity resolution, which delivers experiences across all touch points with timeliness and precision.

Speaker 3: In the Farsech pitch, which was one by Media Hub, asked him and Knessler capabilities, helped develop a strategic roadmap to the client's data and identity infrastructure. And that was instrumental to that new business win.

In the Farfetch pitch, which was won by media hub axiom in Connecticut capabilities helped develop a strategic roadmap for the client data and identity infrastructure and that was instrumental to that new business win.

And as a matter of kind of capabilities, such as <unk> intelligent identity, which we referred to is key and.

Speaker 3: Vanessa and Mattertime capabilities, such as Kinesa Intelligence Identity, which we refer to as P and high value audiences or HVAs, as well as addressable activation across many digital channels, are playing a significant role in all of our media.

And high value audiences or HVA as well as addressable activation across many digital channels are playing a significant role in all of our media.

Go to market.

Speaker 3: In our last call, we discussed the launch of key, which helps clients stitch together multiple large data sets.

On our last call we discussed the launch of key which helps clients stitch together multiple large datasets.

Speaker 3: maximum efficiency and effectiveness. And that's across both the ad tech and the more tech I could.

<unk> efficiency and effectiveness and that's across both the AD tech and the Martech ecosystem and during the quarter. We continued to see double digit percentage increases in campaign improvement for our clients who are using key.

Speaker 3: And during the quarter, we continue to see double digit percentage increases in campaign improvement for our clients who are using key.

In October axiom announced that it had teamed up with Toyota Motor in North America.

Speaker 3: In October , acting manales that it had teamed up with Toyota Motor North America to create a flexible platform solution that elevates customer experiences without the use of third-party cooks.

To create a flexible platform solution.

Elevates customer experiences without the use of third party cookies.

Speaker 3: And that's a solution that's replacing the client's traditional data management plan.

That's a solution that's replacing the client's traditional data management platform.

<unk> also announced that its real identity solution can now seamlessly integrate with the Adobe experience platform.

Speaker 3: Xium also announced that its real identity solution can now seem to see integrate with the Adobe Experience Plot.

Speaker 3: And this is a partnership that transforms the identity model by placing the brand at the center and all third-party data, tech or identity providers as contributors to a brand proprietary identity management.

And this is a partnership that transforms the identity model by placing the brand at the center and all third party data tech or identity providers as contributors to our brands proprietary identity management system.

Speaker 3: And that's something that's critical as third party cookies go away.

And Thats something Thats critical as third party cookies go away.

Speaker 3: Now, the agencies with an IPG help also continue to deliver outstanding results for us.

Now the agencies within IPG health.

Also continued to deliver outstanding results for us.

Having a singular focus and a comprehensive set of global services.

Speaker 3: Having a singular focus and a comprehensive set of global services, the network has been able to leverage many of the data and fuse tools we're building for client.

The network has been able to leverage many of the data infused tools, we're building for clients.

Worth mentioning that one of our largest wins of 2022.

Speaker 3: We're mentioning that one of our largest wins of 2020, that, excuse me, of 2021 was in the health

Excuse me of 2021 was in the healthcare space. So it didn't receive trade press attention. It was more significant in size and many of the headline names that were known to being reviewed.

Speaker 3: though it didn't receive trade press attention. It was more significant in size than many of the headline names that were known to be in review.

Speaker 3: And it's an increasingly characteristic of the services found throughout our portfolio, because they call upon our more consultative, strategic, and specialized capabilities, and they're often more technical and higher value.

And this is increasingly characteristic of the services found throughout our portfolio.

Because they call upon a more consultative strategic and specialized capabilities and they are often more technical and higher value.

Speaker 3: Such work needs to clear a high bar when it comes to compliance and confidentiality while at the same time empowering consumers. In this case, to play a more proactive role in their health and well-being.

Such work needs to clear a high bar when it comes to compliance and confidentiality while.

While at the same time empowering consumers in this case to play a more proactive role in their health and wellbeing.

Our global advertising networks continued to earn widespread industry recognition for high levels of creativity, while furthering their delivery of client centric integrated services.

Speaker 3: Our global advertising networks continue to earn widespread industry recognition for high levels of creativity while furthering their delivery of client-centric integrated services.

Speaker 3: FCB again, one significant industry accolades that confirm its place is one of the industry's most creative net.

FCB again, when significant industry accolades that confirm its place as one of the.

Industry's most creative networks.

Speaker 3: at the Campaign US big awards, S.C.B. was named Agency of the Year, and at the Global Best of Best F.C. Awards, S.C.B. in New York, and S.C.B. 6, which is the agency's creative data and CRM offering, both one grand F.

At the campaign U S. Big Awards SCB was named agency of the year.

And at the global Best of the Best Effie Awards, FCB, New York, and FCB, six which is the agency's creative data in CRM offerings.

One grand fees.

During the quarter. The network also continued to win in the market with.

Speaker 3: During the quarter, the network also continued to win in the market. Would STB 6 adding new work from its Janssen client and STB Canada bringing home first?

With FCB sixth, adding new work from its Janssen client.

In FCB, Canada, bringing home purchases.

Mccann Worldgroup named a new global Chief Creative Officer.

Speaker 3: A CAND World Group named the new global chief creative officer is one of the most accomplished and awarded brand marketers and creative storytellers in the world of consumer markets.

One of the most accomplished and awarded brand marketers and creative storytellers in the world of consumer marketing.

Speaker 3: known during his career at Nike for rallying the best creative ideas and implementing them across plants.

During his career at Nike for rallying the best creative ideas and implementing them across platforms.

Speaker 3: In addition, the World Advertising Research Center, named McCann World Group, the top network globally for effectiveness.

In addition, the World advertising Research center named Mccann Worldgroup, the top network globally for effectiveness.

Speaker 3: And if the EPICO awards, which are the only creative prizes judged by the industry press, the Ken World Group was named Network of the Year.

And at the <unk> Awards, which are the only creative prizes judge by the industry Press Mccann Worldgroup was named network of the year.

In terms of new business.

Speaker 3: Notable wins in the quarter included MRM partnering with our PR specialist current global to win the BISIL home care business

Notable wins in the quarter included MRM partnering with our PR specialists current global to win the home care business.

Speaker 3: and the Can you case, when of Thomas Cook?

And Mccann UK.

When.

Thomas Cook.

And Mullen Lowe group's new business continued strong as it had throughout the year with a decision by credit Karma in the U S to make the agency it's creative AOR.

Speaker 3: and Moan Low Group, new business continued strong as it had throughout the year with a decision by credit car line in the US to make the agency its creative AOR.

Speaker 3: It was followed by the UK Department of Health choosing the Network London Office to oversee the government's integrated COVID-19 communications efforts.

This was followed by the U K Department of Health.

Using the networks, London office to oversee the governments integrated COVID-19 communications efforts.

Speaker 3: Media Hub 13, Adweek, Media Planet of the Year Awards, and continues to build on a strong partnership with our Axiom and Kinesis.

Media hub, one Threep Adweek media plan of the year Awards and continues to build on our strong partnership with our axiom and <unk> teams.

Among our independent agencies domestically. The Martin Agency was named <unk> 2021 U S agency of the year for the second year in a row.

Speaker 3: Among our independent agencies, domestically, the Martin Agency was named AdWheeks 2021 US Agency the Year for the second year in a row, and it won the SOBRA account during the quarter.

When the Sabra count during the quarter.

The other outstanding performer from across this group as Deutsch La.

Speaker 3: The other outstanding performer from the Cross this group is Deutsche LA.

Which continued to post strong growth through great work and deliver innovation for a broad range of national and regional clients.

Speaker 3: continue to pose strong growth through great work and deliver innovation for a broad range of national and regional clients.

Speaker 3: At Dextra, Weber-Shandra continues to win significant assignments from major brands, including recently being selected as ABN Vavis Global Corporate Reputation Agency of Record. Weber-Shandra ranked number one on provokes

Dextro.

Weber Shandwick continues to win significant assignments from major brands.

Including recently being selected as AB Inbev as global corporate reputation agency of record.

However, shandwick ranked number one in provokes.

Media.

Global Creative index.

Speaker 3: and was named PR Week's Purpose Agency of the Year for the Second Year Running.

And was named PR week's purpose agency of the year for the second year running.

Speaker 3: A large of its new Weber collective positioning, which showcases the agency's full range of capabilities.

The launch of its new Weber collective positioning, which showcases the agency's full range of capabilities.

Speaker 3: Coupled with an increased focus on earned media are indicative of the next evolution in WebRestratif.

Coupled with an increased focus on earned media are indicative of the next evolution in Webber strategy.

During the quarter Weber Shandwick, Octagon and MRM came together as part of an integrated team to win the global Communications digital sponsorship and marketing strategy for <unk> technologies.

Speaker 3: During the quarter, Weber Shandwick Octagon and MRM came together as part of an integrated team to win the global communications, digital sponsorship, and marketing strategy for DXC technology.

Speaker 3: Octagon was also selected by ADP to develop its sponsorship strategy and to manage multi-platform sports program.

Octagon was also selected by ADP to develop its sponsorship strategy and to manage multiplatform sports programming.

Speaker 3: So, one was chosen by Napa Auto Parts of the Brands First PR Agency.

Golan was chosen by Napa auto parts as the brand's first PR agency and.

Speaker 3: and current global with name, PR-AR, for Kellogg brands, like RX-BAR, Tashi and Pure Organic.

Current global was named PR AOR for Kellogg brands, like Rx bar, Kashi and pure organic.

Speaker 3: Our special individual agencies are among the most innovative within the IPG portfolio and continue to develop their offerings for the world of Web 3.0. And the opportunities that will provide to consumers and create for marketer.

Our specialist digital agencies are among the most innovative within the IPG portfolio.

And continued to develop their offerings for the world of web three point O and the opportunities that will provide to consumers and create for marketers.

Speaker 3: RGA added a number of new business wins during Q4, notably CVS experience and Samsung Home Appliance.

<unk> added a number of new business wins during Q4.

Notably Cvs experience and Samsung home appliances.

RGA was named a top agency that top agency performance excuse me on <unk>, New business League table for the U S. In 2021.

Speaker 3: RGA was named a top agency, the Bud-top agency, performance, excuse me, on R3's new business league table for the US in 2021. And that report notes that the agency's outperformance in the creative sector demonstrates that clients are leaning more heavily into digital transformation work.

That report notes that the agencies outperformance and a creative sector demonstrates the clients are leaning more heavily into digital transformation work.

<unk> also continues to innovate in the meta versus the agency recently launched a direct avatar commerce experience for our retail brand, which marks an evolution of direct to consumer selling.

Speaker 3: The agency recently launched a direct avatar commerce experience for a retail brand which marks an evolution with direct to consumer selling.

Speaker 3: The agency created a scavenger hunt in the metaverse and experienced for a large health-go client. And RGA opened its first virtual office in D-Centralland. Under its re-

The agency created a scavenger hunt in the med averse and experience for a large telco clients.

RGA opened its first virtual office and decentralized.

Under its.

It's recently installed CEO and his team.

Speaker 3: Huge is continuing its internal transformation process, building on the leading position that it holds in creating customer experiences from the digital market.

Two just continuing its internal transformation process building on the leading position that it holds in creating customer experiences from the digital marketplace.

Speaker 3: The agency is increasingly focused on using data, power more precise dynamic content and experiences, and will also continue to build out an even more robust consulting practice.

Agencies increasingly focused on using data powered more precise dynamic content and experiences.

And we will also continue to build out an even more robust consulting practice.

Turning now to the holding company level as it were I think that as you know we've got a long standing commitment to ESG as a key strategic priority.

Speaker 3: Turning now to the holding company level, as it were, I think that as you know, we've got a long-standing commitment to ESG as a key strategic priority at IPG. And this includes sustainability, diversity, equity, and inclusion.

T G I.

This includes sustainability diversity equity and inclusion during.

Speaker 3: During the fourth quarter, we were pleased to be named to the Dow Jones Sustainability Index North America for the second consecutive year. And this is a distinction that recognizes the top tier of sustainability performers among the 600 largest U.S. and Canadian companies.

During the fourth quarter, we were pleased to be named to the Dow Jones Sustainability Index North America for the second consecutive year and this is a distinction that recognizes the top tier of sustainability performers among the 600 largest U S and Canadian companies.

At the start of this year, we were named to the Bloomberg gender equality index for the third year in a row another important honor.

Speaker 3: At the start of this year, we renamed to the Bloomberg Gender Equality Index for the third year in a row, another important honor.

And then the HRC corporate quality index, we were once again named a best place to work for LGBTQ plus talent.

Speaker 3: And in the HRC Corporate Quality Index, we were once again named the best place to work for LGBTQ plus towns.

So the business in which attracting top talent is vital to our success, whether that's in the creative services area or in our growing data and technology capabilities.

Speaker 3: to the business in which attracting top talent is vital to our success, whether that's in the creative services area or in our growing data and technology capabilities.

Unintentional approach to ESG is an important part of our strategy for making IPG a place people want to join and one where they can build long and successful careers.

Speaker 3: An intentional approach to ESG is an important part of our strategy for making IPG a place people want to join and one where they can build long and successful careers.

Looking forward, we believe IPG is well positioned for the future.

Speaker 3: Looking forward, we believe IPG is well positioned for the future.

Speaker 3: Much of our growth in the quarter and the year was fueled by disciplines and clients sectors that most actively tap into our technology.

Much of our growth in the quarter and the year was fuelled by disciplines and client sectors and most actively tapped into our technology layer.

Speaker 3: whether that's data, capabilities, analytics, or precision mark.

Whether that's data capabilities analytics, where precision marketing.

Speaker 3: We see significant opportunities for more of our creative agencies and our marketing services specialists to live events and sports marketing to be a part of this connected ecosystem.

We see significant opportunity for more of our creative agencies, and our marketing services specialists, such as live events and sports marketing to be a part of this connected ecosystem.

This will help a broader range of our agencies make their thinking and their work more.

Speaker 3: This will help a broader range of our agencies make their thinking and their work more fully informed by a deep understanding of audience.

Fully informed by a deep understanding of audiences.

And as a result, it will make that work more accountable and effective.

Speaker 3: And as a result, it will make that work more accountable and effective, which can help us to continue to build on our industry leading growth project.

Which can help us to continue to build on our industry leading growth trajectory.

Speaker 3: As stated earlier, we expected the liver strong growth in 2022 for the target of 5% on top of an industry leading record that goes back a number of years.

As stated earlier, we expect to deliver strong growth in 2022 with a target of 5% on top of an industry leading record that goes back a number of years.

Consistent with that level of growth, we foresee adjusted EBIT margin at a level of approximately 16, 6%.

Speaker 3: Consistent with that level of growth, we foresee adjusted EBIT on margin at a level of approximately 16.6%.

Speaker 3: as we consolidate the gains made over the last 24 months and position ourselves for further margin expansion in the years ahead.

As we consolidate the gains made over the last 24 months and position ourselves for further margin expansion in the years ahead.

Another key area for value creation remains our very strong balance sheet and liquidity.

Speaker 3: Another key area for value creation remains our very strong balance sheet and liquidity.

Speaker 3: Our ongoing commitment to capital returns is clear in the actions announced by our board today, which also speaks to confidence in our future prospects.

Our ongoing commitment to capital returns is clear the actions announced by our board today.

Which also speaks to confidence in our future prospects.

Speaker 3: We're pleased with the dividend increase and also by our return to share repurchasing.

We're pleased with the dividend increase and also by a return to share repurchase.

Speaker 3: two key components of a balanced approach to capital allocation.

Two key components of our balanced approach to capital allocation.

Alongside these actions will further invest behind the growth of our businesses by developing our people and continuing to differentiate our offerings.

Speaker 3: Alongside these actions, we'll further invest behind the growth of our businesses by developing our people and continuing to differentiate our offer.

Speaker 3: This will be supplemented by our disciplined approach to M&A.

This will be supplemented by our disciplined approach to M&A.

Speaker 3: focusing on opportunities that are consistent with strategic growth areas.

Focusing on opportunities that are consistent with strategic growth areas.

Especially in connected commerce and digital consumer experiences.

Speaker 3: especially in connected commerce and digital consumer experience.

Speaker 3: We thank our clients, our people, and those of you on this call for your continued support. And with that,

We thank our clients our people and those of you on this call for your continued support.

And with that let's open the floor to questions.

Thank you to ask a question. Please press star one on mute your phone and record your name clearly if you need to withdraw your question Press Star two again to ask a question. Please press star one one moment for the first question.

Speaker 1: To ask a question, please press star 1. Unmute your phone and record your name.

Speaker 1: If you need to withdraw your question, press star two. Again, to ask a question, please.

Speaker 3: Our first question is from David Karnovsky with JP Morgan. You may go ahead. Hi, thank you. Absolutely, but with something you could expand on your thoughts on the advertising market generally at the moment. How much of the strength and ads spend do you see is driven by cyclical recovery versus some of those structural factors you highlighted, like marketers trying to capitalize on outsized changes in consumer behavior or changes in media.

Our first question is from David Karnofsky with Jpmorgan you May go ahead.

Absolutely I was hoping you could expand on your thoughts on the advertising market generally at the moment.

How much of the strength in AD spend do you see is driven by cyclical recovery versus some of the structural factors you highlighted like marketers trying to capitalize on outside of changes in consumer behavior changes in media consumption.

Speaker 5: I would characterize the environment overall as healthy. I think we're seeing both. I think

How are you are welcome.

Look I would characterize the environment overall is healthy so I think we're seeing both right.

Think.

Speaker 5: Clients clearly for a host of reasons and want to need to and understand the value of being active in the marketplace. And I think that's across a broad range of channels, although the focus is clearly on deepening relationships with consumers. And so I'd say that the highest area of demand, which won't surprise you, you know, is for services and capabilities where you've got a greater digital component.

Clients clearly for a host of reasons want to need to and understand the value of being active in the marketplace.

And I think thats across a broad range of channels. Although the focus is clearly on deepening relationships with consumers and so I'd say that the highest area of demand, which won't surprise you.

As for services and capabilities, where you've got a greater digital component data driven component accountability clearly in precision are absolutely key right, but there is still a strong need for thinking and for work that is going to bring brands to life in mass media right. So I mean I look at.

Speaker 5: data-driven component accountability clearly in precision or absolutely key. But there's still a strong need for thinking and for work that's gonna bring brand to life and mass media. So I mean, I look at what's gonna happen this weekend, we've got kind of a number of clients who are gonna feature and make news on the Super Bowl, it's still a very effective platform. And then the other place we see demand is

What's going to happen. This weekend, we've got kind of a number of clients, we're going to feature and make news on the Super Bowl, It's still very effective all kind of platform and then the other place we see demand is.

Four.

Speaker 5: of integrated campaigns. So when you want to articulate and then land an idea across a full range of touch points, because I think that, again, when a marketer is launching a new product, looking to differentiate their service, they see the value of all of this. Now, um

Integrated campaigns. So when you want to have land articulate and then land an idea across a full range of touch.

<unk> touch points, because I think that again when a marketer is launching a new product.

Looking to differentiate their service they see the value of all of them now.

Yes.

Speaker 5: you know, other factors that come to mind when I kind of think about what you put out there, I sort of, you know, when you think

Other factors that come to mind, when I kind of think about what you put out there.

No.

You think about say Q4.

Speaker 5: The project as it were activity in Q4 was healthy. So there's also an interest in the kind of work that our marketing services and activation agencies are doing. So I think that that probably tracked modestly north of overall growth in the quarter. And then if you sort of think about...

Project as it were activity in Q4 was healthy. So there's also an interest in the kind of work that our marketing services and activation agencies are doing so I think that that probably track modestly north of overall growth in the quarter.

And then if you sort of think about.

Speaker 5: experiential event, a small piece of our offering, but still an important part of the overall offering. That was back to circa 85% of the level that we were seeing in Q4 of 2019.

Experiential event, a small piece of our offering but still an important part of the overall offering.

That was back to <unk>.

Circa 85% of the level that we were seeing in Q4 19.

Speaker 5: you know so i think all of those things tell you that what we're seeing is a combination of both if there's definitely uh... broader recovery going on but i think there's also a shift to and understanding that you can you know and that you have to you know have a voice in the marketplace given the complexity what's going on the speed of what's going on and some of the other you know pressure points that that clients are feeling um...

So I think all of those things tell you that what we're seeing is a combination of both theres definitely.

Broader recovery going on but I think there's also a shift to an understanding that you can.

You have to.

Have a voice in the marketplace given the complexity, what's going on the speed of what's going on in some of the other pressure points that clients are feeling.

Speaker 5: in terms of their business and how they need to drive their story, their franchise forward.

In terms of their business and how they need to drive their story their franchise forward.

Okay, and then just two for Alan if I could I think sub inflationary impact of base salary was mentioned for 2022 I don't know if you can quantify that and expand on some of the actions you've taken to manage and then second on the buyback any sense for how investors should think about the pace.

Speaker 3: Okay, and then just two for Ellen if I could, I think some inflationary impact that base salary was mentioned for 2022. I don't know if you can quantify that and expand on some of the actions you're taking to manage. And then second on the buyback, any sense for how investors should think about the pace is it fair to look at your repurchases, pre-act families of God.

Fair to look at your repurchases pre axiom as a guide thank you.

Sure.

Speaker 4: Sure, good morning. So starting first with our margin target, that was a product of a very long and thorough budgeting process.

So starting first with that I'll start with our margin target that was a product of a very long and thorough budgeting process. So yes, while there is some modest inflation implicit in there.

Speaker 4: So yes, while there is some modest inflation implicit in there, we believe it is manageable. And there will be a bunch of puts and takes, as you would expect in 2022. The outcome, severance, temp should all normalize.

We believe it is manageable.

There will be a bunch of puts and takes as you would expect in 'twenty two incentive comp severance Tam should all normalized.

Speaker 4: were very confident in the restructuring savings. And I would go back to the fact that we have a proven track record of managing margin. If you go back four years, I mean, we've increased our margin for 100 basis points. So we feel very confident in our ability to manage.

We're very confident in the restructuring savings and I would go back to the fact that we have a proven track record of managing margin. If you go back four years I mean, we've increased our margin 400 basis points. So we feel very confident in our ability to manage that.

Speaker 4: Turning to your question on share buybacks. You know, we've had a very consistent and disciplined approach to capital allocation. We said from early on, we paused it when we, we've levered as a result of the act, act of acquisition. We've done that and now we're proud and happy to be resuming it. So I would go back to, you know, pass history to look at our spending, both on an annualized basis, as well as the seasonal components of it.

Turning to your question on share buybacks, we've had very consistent and disciplined approach to capital allocation.

We said from early on.

Positive.

Delever as a result of the axiom acquisition, we've done that and now we're proud and happy to be resuming. It. So I would go back to past history to look at our spending both on an annualized basis.

As well as the seasonal components of it.

Very helpful. Thank you.

Thank you.

Speaker 1: The next question is from Ben Swinburne with Morgan Stanley . You may go ahead. Hey, good morning everybody.

Thank you. The next question is from Ben Swinburne with Morgan Stanley You May go ahead.

Hey, good morning, everybody.

Hello.

So maybe you could talk a little bit about sort of the disciplines are parts of your business that you think are going to drive growth in 2002, I imagine a lot of the addressable media.

Speaker 6: Maybe you could talk a little bit about sort of the disciplines or parts of your business that you think are going to drive growth in 22. I imagine a lot of the addressable.

Speaker 6: media products that you guys have brought to market may be a leader but just trying to think about both the secular growers but also any areas that haven't totally recovered like events for example particularly we think about comparing your guidance which is you know well ahead of expectations compared to your competitors who have who have guided even in some cases higher numbers

<unk> you guys have brought to market, maybe a leader, but just trying to think about both the secular growers, but also any areas that haven't totally recovered like events. For example, particularly as we think about comparing your guidance, which is well ahead of expectations compared to your competitors, who have who have guided to even in some cases higher numbers.

Speaker 6: And then Ellen, is there a leverage level that you guys want to manage the company to over time? Just as we think about, you know, balancing acquisition spend and buybacks, looking out over the next couple years is sort of their a target leverage or something you can help us with around being investment grade. Anything on that front would be helpful. Thank you both.

And then Ellen is there.

Is there a leverage level that you guys want to manage the company to over time, just as we think about.

Balancing acquisition spend in buybacks.

At over the next couple of years it sort of there.

Target leverage or something you can help us with around being investment grade anything on that front would be helpful. Thank you both.

Speaker 5: Sure. Look, I mean, if you look at Q4, which I think, you know, it kind of helps to sort of think, okay, what are we seeing as we head into the new year? I think the sort of strongest areas of growth aren't gonna surprise you, you know, in the least bit. So, media data, tax.

Sure.

Look I mean, if you look at Q4, which kind of helps to sort of think okay. What are we seeing as we head into the new year I think.

The sort of strongest areas of growth arent going to surprise you in the least bit so media data tech if you sort of pull it from a discipline point of view health care. If you think about it as a sector point of view.

Speaker 5: you sort of pull it from a discipline point of view, healthcare, if you think about it as a sector point of view, clearly the US as a region, where there we had strength kind of across the board. I mean, media brands are strong.

Clearly the U S is a region, where there we had strength kind of across the board I mean media brands strong Mccann and FCB were strong.

Speaker 5: Mechanin FCB were strong, FCB health in particular. Axiom had a really good quarter. So I think to my mind, it's with...

FCB health in particular axiom had had a.

Really good quarter, so I think to my mind.

Where you've got more of those data capabilities.

Speaker 5: You know, more of those data capabilities and that ability

And that.

Ability to connect what.

Speaker 5: What we do on the marketing services and the kind of

What we do on the.

Marketing services and the.

The kind of creative ideation side of things through the line to this.

Speaker 5: creative ideation side of things through the line to this, the data and tech layer. But in terms of the recovery, as we called out, when you look at on the experiential and events businesses, they're clearly held by the fact that you're comparing to fairly depressed levels in 2020. I think that what's positive there is that we're clearly not going to see.

Data and tech layer, but.

In terms of the recovery.

We called out when you look at on the experiential and events businesses Theyre clearly held.

Helped by the fact that you are comparing to a fairly depressed levels in 2020.

I think that was positive there is that we're clearly not going to see.

Speaker 5: You know, lockdowns are the kinds of restrictions, you know, societal response to...

The lockdowns are the kinds of restrictions societal response too.

Speaker 5: whatever the lingering effects of COVID-19 seem to be kind of normalizing and so i think we're going to be we see continued opportunity there it's a it's a modest part of the portfolio it's probably sub five percent of the portfolio but as i say we see it as a place where we can integrate all the way through with our other assets but i think we all see it as a place where

Whatever the lingering effects of COVID-19 seem to be kind of normalizing and so I think we're going to we see continued opportunity there.

A modest part of the portfolio, it's probably sub 5% of the portfolio, but as I say, we see it as a place where we can integrate all the way through with our other assets, but I think we all see it as a place where.

Speaker 5: Smart marketers are going to look at some of those areas as places where they can

Smart marketers are going to look at some of those areas places where they can.

Speaker 5: do something that a lot of clients are very focused on, which is build their repository of first-party data. So they're interacting with consumers in live settings. And so when you think that through on a going in basis, you can build those experiences in a way that I think is going to be really beneficial for a marketer.

Do something that a lot of clients are very focused on which is build their repository of first party data so theyre interacting with consumers in live settings and so.

When you think that through on a going in basis, you can build those experiences in a way that I think is going to be really beneficial for for a marketer.

Sure.

Speaker 4: And to answer your question, we've been very consistent in this area too. We've consistently valued maintaining a strong balance sheet and having the financial flexibility that we need to both invest in our business, both organically through the CAPEX and through a strategic M&A, as well as maintaining a balanced return of capital.

And.

To answer your question.

We've been very consistent in this area are to consistently valued.

Painting, a strong balance sheet and having the financial flexibility.

We need to both invest in our business, both organically through Capex and through a strategic.

M&A as well as maintaining a balanced return of capital.

Speaker 4: And that's not going to change. We're very happy with our credit ratings. We plan to maintain them. But we're also very excited to have consistently increased our dividend and to be returning to Sherry Purchase.

That's not going to change, we're very happy with our credit ratings, we plan to maintain them.

Also very excited to have consistently increased our dividend and to returning to share repurchases.

Would you guys like to be acquisitive again in 'twenty two is that something youre looking to lead into now that you've de Levered post axiom.

Speaker 6: Would you guys like to be a quizitive again in 22? Is that something you're looking to lead into now that you've delivered post-axe?

Speaker 5: Look, it's clearly an avenue that's available to us. And I think that having come through Axiom now and having, you know, integrated it, I think very effectively and having been really disciplined in moving through the de-leveraging when you think about, as I said, areas like...

But look it's clearly.

<unk> Avenue, that's available to us and I think that having come through axiom now and having.

Integrated I think very effectively and having been really disciplined in.

Moving through the deleveraging.

When you think about as I said areas like.

Digital consumer experience areas like whatever this sort of a breath of.

Speaker 5: digital consumer experience areas like whatever the sort of breadth of Commerce is because obviously with you call it e-commerce or connected commerce. Those are definitely areas where We're going to be thoughtful, but and we've always been of the if we can

Commerce is because obviously, whether you call it e-commerce or connected commerce that those are definitely areas where.

We're going to be thoughtful, but and we've always been of the if we can.

Speaker 5: invest in it and build it ourselves. You know, that's clearly a preferred approach that's worked well for us over time. You know, but the rate of change is high and where you find an asset that brings IP and a technology capability that's distinctive, it can clearly help accelerate the business. So we're definitely gonna be looking at thinking those areas in a thoughtful way. Right, thanks.

Invest in it and build it ourselves.

That's clearly our preferred approach that's worked well for us over time.

But the rate of change is high and where you find an asset that brings IP and technology capability. That's distinctive can clearly help.

To accelerate the business. So we're definitely going to be looking I think in those areas in a thoughtful way.

Great. Thank you very much.

Okay.

Thank you.

Speaker 1: Thank you. The next question is from Michael Nathanson with Moffitt Nathanson. You may go ahead. Thanks. Felipe, I have one more question. I have a question for you. I'm going to ask you a question.

The next question is from Michael Nathanson with Moffett Nathanson you May go ahead.

Thanks, Felipe I have one short term or long term short term is in the fourth quarter. It looks like the UK and Europe kind of came in mid single digit organic growth was there anything in those regions.

Speaker 2: short term is in the fourth quarter, it looks like the UK and Europe kind of came in mid-town digital organic growth. Was there anything in those regions that you wanted to call out and is that part of the reason for your guide in 22? Is there anything that's consistent between two? And then just stepping back.

That you wanted to call out and is that part of the reason for your guide in 'twenty two is there anything either.

Consistent.

For 'twenty, two and then just stepping back.

Speaker 2: and thinking about how you position the company and the tailwinds coming out of the pandemic, the things that you've thought about, why wouldn't the next two or three years organic growth be better than the two-year stack you just gave us, right? So I'm trying to figure out like, why aren't we in an accelerating period of organic growth?

And thinking about how you position the company and the tailwind coming out of the pandemic for the things that you've thought about.

Why wouldn't the next two to three years organic growth better.

And the two year stack you just gave US right. So I'm trying to figure out like why are we in an.

Accelerating period of organic growth.

Speaker 2: given the position of your company and where marketers are going.

Given the positioning of your company and where marketers are going so thanks.

Well I'll take them I'll take them kind of backwards.

Speaker 5: I'll take them backwards. I think that I would frame your growth question over a multi-year period. So I think if you think about it, you say, okay, we deliver on the growth target we just put out there. Assume that competitors who've guided do the same.

Look I mean, I think that I would frame your growth question over a multiyear period right and so I think if you think about it you say, okay. We deliver on the growth target. We just put out there assume that competitors, who guided do the same.

Speaker 5: and then take out some of the volatility of pandemic by say doing a three year stack do a four year whatever you need to do but if you do a three year stack and you roll that scenario out uh... our growth is still going to be i'd say two x the industry average and so to our mind that says very competitive offerings and i think more importantly it says that's a platform for go forward sustainable growth you know it's a big business and we're and we're in the midst of

And then take out some of the volatility of pandemic by say doing a three year stack due a four year whenever you need to do but if you do a three year stack and you roll that scenario out.

Our growth is still going to be I would say two <unk> the industry average and so to our mind that says very competitive offerings and I think more importantly, it says that's a platform for go forward sustainable growth.

Big business, and we're and we're in the midst of.

Trying to move through and assess and modernize a lot of it and you see the places where we've been.

Speaker 5: trying to move through and assess and modernize a lot of it. And you see the places where we've been.

Speaker 5: successful and got out ahead of that but you know there's still a reasonable way to go so that's opportunity But that also to my mind doesn't then translate into sort of a hockey stick and then on the UK question I would put to you that what we've got you know in any region

Successful and gotten out ahead of that but there is still a reasonable ways to go so thats opportunity, but that also to my mind doesn't then translate into sort of a hockey stick and then on the UK question I would put to you that what we've got.

Any region.

Speaker 5: You know, the nature of our business, you know, the, you know, the, say, the, sort of, the size that that represents to us all in, and it's a quarter. And what we had in, in the UK was, was quite variable performance, oddly enough. You know, we had a couple of marketing services assets, and we're not going to sort of call out, you know, the specifics, but we had a few marketing services and project assets there, which whether it was.

The nature of our business.

Say the sort of the size of that represents to us all in a quarter and what we had and in the U K was quite variable performance oddly enough.

We had a couple of marketing services assets, and we're not going to sort of call out.

Specifics, but we had a few marketing services in project assets, there, which whether it was specific to them or to a client.

Speaker 5: specific to them or to a client didn't perform as well. We had a bunch of assets I call that on Ben's question that did perform very well. But I think looking at a specific quarter in a region for us, we had a lot of

Didn't perform as well we had a bunch of the app.

Assets I called out on Bens question that did perform very well, but I think looking at a specific quarter in a region for us.

<unk> tends not to be.

Speaker 5: tend not to be uh... but i think uh...

<unk>.

All of that.

Speaker 5: all that, you know, strong and indicator of how the business is performing and I'd sort of say, you know, take a look at the year, whether it's international overall or for any of the regions. Okay. I thought I'd ask.

Strong an indicator of how the business is performing and I'd sort of say take a look at the year, whether it's international overall or for or for any of the regions.

Okay, I thought I'd ask.

Thank you.

Thank you.

Thank you. Our final question comes from Jason Bazinet with Citi. You May go ahead.

Speaker 1: you. Our final question comes from Jason Bousene with city. You may go ahead. Jason.

Jason.

Speaker 2: How's it going? So it seems to me that there's still this disconnect between how the buy side perceives your firm and the industry and the facts on the ground, where you guys are growing faster than the overall economy and a lot of margin expansion over the years. And so my question is, is there a way to just talk about the margin expansion you've had?

How's it going.

So it seems to me that there's there's still there's a disconnect between how the buy side perceives your firm in the industry and the facts on the ground, where you guys are growing faster than the overall economy and a lot of margin expansion over the years and so my question is.

Is there a way to to just talk about the margin expansion you've had to date from that kind of 11% range up to mid sixteens.

Speaker 2: How much of that has come from sort of disciplined costs?

How much of that has come from sort of disciplined cost.

Speaker 2: cost containment, and how much does it come from adding more value to your clients in this more complex world? And when you move to this three-segment reporting, do you think that will allow the buy side to understand or tease apart sort of the higher value services that might have allowed you to do that?

Cost containment and how much of that has come from adding more value to your clients in this more complex world.

And when you move to this three segment reporting do you think that will allow the buy side to understand with tease apart.

Sort of a higher value services that might have allowed you to expand the margin as you add more value to your clients.

Look I mean to your point I think the thinking behind.

Speaker 5: Look, I mean to your point, I think the thinking behind

Speaker 5: Adding that additional segment view is, you know, it's unlikely that we could give you line of sight into how the business is run, because in the case of many of our really large clients, it is a very integrated, broad range of services that are brought to bear. And because, you know, we're continuing to try to.

Adding that additional segment view is.

It's unlikely that we could give you line of sight into how the business is run because in the case of many of our really large clients.

It is a very integrated broad range of services that are brought to bear and because we're continuing to try to.

Speaker 5: evolve the business, right? But clearly our thinking in going to a third segment or a three-segment view will be to give you a better line of sight into precisely the question that you've asked. And then I think that, you know, the other thing that we clearly try to do is call out.

If all of the business right, but clearly our thinking and going to a third segment or <unk> segment view will be to give you better line of sight into precisely the question that you've asked.

And then I think that the other.

The thing that we clearly try to do is call out where the strong performers are.

Speaker 5: where the strong performers are, and then be very direct with you about the fact that the places where we've seen growth over the last few years in media and data and tech in healthcare are not only our stronger growers, but they're also accretive to growth and they're also accretive to margin. So they are building, as you say, a better place to start.

And then the very direct with you about the fact that the places where we've seen growth.

Over the last few years in media and data and tech and healthcare, our not only our stronger growers, but theyre also so they are accretive to growth and there are also accretive to margin. So they are building as you say.

There is clearly disciplined cost management.

Speaker 5: There is clearly disciplined cost management, and we've got terrific teams in that regard. There's clearly the benefit of the restructuring, but there's also, as you say, the fact that the nature of what we do is generating more value for clients, and we're still a work in progress in terms of evolving the...

We've got terrific teams in that regard, there's clearly the benefit of the restructuring, but there is also as you say the fact that the nature of what we do is generating more value for clients and we are still work in progress in terms of.

Evolving the.

Speaker 5: business model as well in terms of how the commercial models in terms of how we engage with With clients, but we're going to keep trying to as we move through this process You know give you some line of sight into how that's going That's great. Thank you very much No, please thank you

Business model as well in terms of had a commercial model in terms of how we engage with.

With clients, but we're going to keep trying to as we move through this process.

I'll give you some line of sight into how thats going.

That's great. Thank you very much.

Please thank you.

And I'll turn it back to speakers for any closing remarks.

Well look again, just thank you all for the time, we know there's a lot to cover on this particular call because we're both recapping on quarter or year end, giving you line of sight, but as we said.

Speaker 5: Well, look, again, just thank you all for the time. We know there's a lot to cover on this particular call because we're both recapping a quarter a year and giving you line of sight. But as we said, we're excited about what's ahead, and we're very focused on the fact that that's going to require everybody on our side to execute. So thank you, and we'll talk to you in relatively short order. We've got a call coming up. Thank you. This concludes today's session.

We're excited about what's ahead and we're very focused on the fact that thats going to require everybody on our side too.

To execute so thank you and we'll talk to you in relatively short order, we've got a call coming up.

Thank you. This concludes today's conference.

You may disconnect at this time.

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