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Chairman’s Report

2018 was a strong year for the Clemenger Group, with our revenue increasing some +3% to $366.6m. Our profit after tax was $47.0m, which was in line with the prior year.

During the year our shareholders enjoyed a 50 cent per share interim dividend in addition to the annual dividend of 13.25 cents per share. The new share price is $3.11. This has been a great year for our over 350 local shareholders as well our major shareholder BBDO Worldwide.

The year saw Clemenger move from St Leonards in Sydney where we had been for over 30 years to fantastic new premises in Walsh Bay. Everyone is loving the new surroundings and it has facilitated a huge increase in cross discipline cooperation – a very important requirement in our business today.

Some of the many highlights on the new business front were: BMW, Menulog and the AFL at Clemenger BBDO Melbourne; Austrade out of Clemenger BBDO Sydney; EECA out of Clemenger BBDO Wellington; Alinta through Marketforce; McCain foods at Porter Novelli and Mortgage & Finance Australia through the combined efforts of GRACosway, Porter Novelli and Redhanded. CHE Proximity continued their winning ways winning Vanguard Investments, Prospa, RACV, Danone and Michael Hill. Perhaps the highlight of the year was winning Farmer’s through 99 in Auckland. There were many other new assignments across the Group.

Jim Moser left the Group to join BBDO as Chairman of BBDO Europe. Jim was with us for 18 years and made a huge contribution in both New Zealand and Australia.

We welcomed Levo into the company. Levo are experts in web development and e-Commerce. They are already working across the Group on shared clients like Mazda.

Kim Boehm retired at the end of 2018 after nearly 40 brilliant years. Kim ran our Adelaide Agency, CHE and was a key part of the success of Clemenger BBDO Melbourne for many years. He more recently oversaw Group Talent and Marketing and did a fantastic job on this too.

Jim Gall became CEO of Clemenger Group New Zealand replacing Jim Moser. He also worked to re-engineer our leadership in Perth. Lachlan Drummond replaced Jim Gall as Managing Director of Redhanded.

Imogen Randell became CEO of both Hall & Partners and Quantum.

Our companies were recognized widely for the work we do and we detail these achievements in the body of this report.

In 2019 we will continue to be successful as long as we remain committed to creativity for our clients. Through new technology and data, we can now reach our customers more efficiently. But, with our superior creativity, we can engage them more effectively than ever. This is our long term, sustainable competitive advantage.

2019 will be a strong year as long as we commit to creativity and transforming our businesses in the digital world. We all need to embrace the major changes to our industry and become experts at using the new tools at our disposal. Training and developing new skill sets will be critical to future success.

2018 Chairman's Report

2018 was a strong year for the Clemenger Group, with our revenue increasing some +3% to $366.6m. Our profit after tax was $47.0m, which was in line with the prior year.

During the year our shareholders enjoyed a 50 cent per share interim dividend in addition to the annual dividend of 13.25 cents per share. The new share price is $3.11. This has been a great year for our over 350 local shareholders as well our major shareholder BBDO Worldwide.

Read the full Chairman's report Play Introduction
Robert Morgan
Robert Morgan
Executive Chairman
Clemenger Group Limited
Jonathan Issacs
Jonathan Isaacs
Chief Financial Officer
Clemenger Group Limited
Imogen Randall
Imogen Randell
Chief Executive Officer
Quantum Market Research and Hall & Partners
Chris Howatson
Chris Howatson
Chief Executive Officer
CHE Proximity
Brigid Alkema
Brigid Alkema
Executive Creative Director
Clemenger BBDO Wellington
Chris Pescott
Chris Pescott
Chief Executive Officer
Perceptive
Kirsten Mulley
Kirsten Mulley
Managing Partner, Public Affairs
GRACosway
Marianne O'Brien
Marianne O'Brien
Managing Partner - Creative
Clemenger BBDO Brisbane

Our Companies

Our success comes from the company we keep. As diverse as they are brilliant, each part of this Group is united by a passion for creative problem-solving.

Award Highlights

While there were enough awards across the Group to make even the sturdiest trophy cabinet strain, some pieces of work shone through.

Autoads
Autoads
Carsales - CHE Proximity
Aussie News Today
Aussie News Today
Tourism Australia - Clemenger BBDO Sydney
Christmas Naughty or Nice Bauble' Baubles
Christmas Naughty or Nice Bauble
Myer - Clemenger BBDO Melbourne
Kupu
Kupu
Spark - Colenso BBDO
NZTA
Dilemmas
Dilemmas - Clemenger BBDO Wellington
The work, the work, the work

Big Wins

Awards throughout the year, as recognised by WARC

Big Moves

From reshuffling to relocating, 2018 saw a number of changes that helped to streamline business and create new opportunities.

Clemenger Group moves to Pier 9 in Sydney
justONE relocates to join 99 on Richmond Road
GRC Partners launches in New Zealand
Raydar expands and launches Sapien in New Zealand
Levo Digital is acquired

Our People

What's new

$47m net profit *attributable to
Members of the Group

Moments of Recognition

March
Nick Worthington
Nick Worthington receives lifetime Achievement Award at Axis

Nick Worthington was honoured with a “Lifetime Achievement” award, Colenso won Agency of the Year for the third year in a row, Clemenger Wellington won a Brand Axis recognising five years of continued creative brilliance on NZTA and Fonterra won Client of the Year.

July
Peter Kent
Peter Kent enters his 20th year as CEO, PNA

This year Porter Novelli Australia Chief Executive Officer Peter Kent marks 20 years with the Clemenger Group. Peter’s career lifeline tracks from adventure travel to journalism, then government and consulting, which he says he only meant to do for a few years between “real jobs”. From Sydney to Melbourne and then leading Porter Novelli Australia, Peter’s contribution and impact has been outstanding. Congratulations Peter.

December
Clemenger University
Clemenger University celebrates its 29th successful year

Clemenger Group has once again put some of its best and brightest through Clemenger University - an intensive week-long residential MBA-level course at the Melbourne University Business School. Started by Peter Clemenger, the program brings many of our companies together in the spirit of collaboration and learning.

+3% revenue growth

Pride and Joy

Something to shout about

Our Unique Employee Share Scheme

A rewarding experience

Why the share scheme?

The Clemenger share scheme was first introduced back in 1973 as a way of giving our people a stake in the Group’s success. This has made the ownership of the Clemenger Group unique, with 26.33% of the company owned by staff and the remaining 73.67% owned by BBDO Worldwide Inc. of New York – which is part of the US listed Omnicom Group.

What is the deal?

When existing employee shareholders leave our companies, they are obliged to sell their shares. So, all newly-available shares go back into a pool, and all current employees can apply to purchase these shares. Applications occur once a year in May, and shares are traded in June.

How to be part of it?

For information on joining, contact your manager or email:

Australia: Rowan Darling:
rowan.darling@clemenger.com.au

New Zealand: Mike Higgins:
mike.higgins@clemenger.co.nz

50c interim dividend paid *August 2018

Concise Financial Report

The Concise Financial Report and Auditors' Report contained within this document represent a Concise Report. The full financial report of Clemenger Group Limited for the year ended 31 December 2018 and the Auditors' Report thereon will be sent, free of charge, to members upon request. Members wishing to receive the full financial report and Auditors' Report may arrange for a copy by contacting Adrian Ciabotti on 03 9869 4206.

The Concise Report contained within this document has been derived from the full consolidated financial report of Clemenger Group Limited for the year ended 31 December 2018 and cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as the full financial report.