Ipsos - The impact of the Coronavirus epidemic (Covid-19) on activity - Seite 2

 

Ipsos has obviously implemented a series of measures intended to protect its margins, its liquidity and its ability to work with its customers:

-          control over the activity of the various markets is reinforced by the transition to a weekly reporting system, which replaces the usual monthly reporting;

-          the volume of payroll - which represents almost 80% of Ipsos' fixed costs - is rapidly reduced. Recruitments have been frozen, as well as planned salary increases, whether or not linked to promotions. The main directors and executives of Ipsos, around 700 people, have overwhelmingly agreed to monthly salary reductions of up to 20%. Of course, Ipsos will participate in the various plans implemented in certain countries which result, as far as possible, in maintaining existing jobs. Finally, while the bonuses linked to the performance of 2019 have been paid, the variable remuneration systems relating to 2020 have, for the moment, been put on hold;

-          overhead was also the subject of great attention. International travel had been suspended since February 28 for health reasons. All other spending lines, including leases and capital investments, are reduced as quickly and as much as possible. On the other hand, the digitization programs of our offers are preserved;

-          it will be proposed to the General Meeting of shareholders, which will probably be held behind closed doors (see below) on May 28, to distribute a dividend of 45 cents per share, i.e., almost 50% less than what had been initially planned.

-          share buybacks are suspended.

Ipsos ensures above all the safety, tranquility and health of all those with whom it works and on whom it depends: its employees and contract workers, its customers, its suppliers and partners and the tens of millions of people who are asked each year to give their opinions, express their preferences and describe their wishes or experiences.

Ipsos is confident in its ability to get through the period that has just opened and that will last longer than the time of confinement. For a long time, this pandemic will be a game-changer. It is massive, brutal and universal. It is also lived by all, in real time, the first time for a viral attack that is so contagious. As such, it will permeate the functioning of society, the structure of markets and the behaviors, hopes and fears of people. It will force institutions and businesses to work differently. It will also reinforce Ipsos’ conviction that information, as long as it is properly produced, analyzed with rigor and communicated with vigor and clarity, is the most essential tool that these same institutions and companies need. In the coming years, markets will be more volatile, and the opportunities to win or lose, and to gain or no longer hold the confidence of our customers / consumers / citizens, will become more strong.