Chief Executive’s report.

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Jerry Buhlmann, Chief Executive Officer, Aegis Group plc. “In 2011, we delivered a strong performance, outperforming the markets in which we operate. Our performance is the result of the delivery of our focused strategy.”
2011 was a year of significant progress for Aegis, from both a strategic and an operational performance perspective. We are now well placed to build on the significant momentum the business is already demonstrating.

Strategically, the year saw a major structural development in the composition of the Group as we became a focused media and digital communications group, following the sale of the market research business, Synovate, in October 2011.

Operationally, we delivered a strong performance, outperforming the markets in which we operate, in spite of the fact that several of them were impacted by challenging macro-economic conditions. Aegis Media produced sector-leading organic growth, margin progression and a record-equaling year in net new business wins of $2.7 billion. This was delivered by a clear and well implemented strategy, creating positive momentum across our five global network brands within Aegis Media. An improved performance from Aztec, the retail data scan business, supporting Aegis Media, led to a strong set of financial results for 2011.

Our 2011 performance is the result of the delivery of our focused strategy. This strategy has delivered unrivalled exposure to media and digital, which now contributes 35% of Aegis Media’s revenue (2010: 32%), with consistently increasing revenue contribution from faster growing regions and North America, which together now generate 50% of Aegis Media’s revenue (2010: 43%).

The momentum achieved last year continues into 2012 with our appointment as the global media strategic partner for General Motors Co., the most significant new business win in Aegis’s history. Following the GM appointment, which carries an anticipated annual global media spend of $3 billion, and our achievements in 2011, we expect 2012 to be another successful year for Aegis. We expect to deliver continued sector-leading organic revenue growth which we expect to convert into further margin progression and earnings enhancement for our shareholders over time.

Aegis Media uniquely positioned for convergent media environment /

Our 2011 performance demonstrates the success of Aegis’s focus as a scaled media and digital communications specialist, in the context of a rapidly evolving and increasingly complex advertising environment. This focus, supported by global coverage, enables us to help our clients to re-invent the way their brands are built.

To reflect the requirements of our clients, our five global network brands of Carat, Vizeum, Posterscope, Isobar and iProspect operate through one P&L and one operating model per country with a full range of integrated, and specialist, services.

Our approach is unique in the sector and is supported by market-leading insight tools and a fully embedded communications planning process, all of which aim to fulfil the following strategic objectives:

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Increase our exposure to faster-growing regions
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Grow our digital profile and capability
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Broaden our service offering across all of our clients
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Grow our international client and new business profile
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Strengthen our leading position in the top 20 markets, in particular China and the US.
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“Momentum built up in 2011 has continued, and we are therefore optimistic about Aegis’s prospects for 2012.”