Omnicom Group Inc. · NYSE:OMC
Omnicom — Q4 2006 Earnings Presentation
18 slides from Omnicom's earnings presentation, Feb 13, 2007
Slide 1: Omnicom Group Fourth Quarter 2006 Results
Exhibit 99.2 Omnicom Group FOURTH QUARTER 2006 RESULTS Investor Presentation February 13, 2007
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the February 13, 2007 conference call on Omnicom’s results of operations for the year ended December 31, 2006. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the s
Slide 3: 2006 vs. 2005 P&L Summary
2006 vs. 2005 P&L Summary Fourth Quarter Full Year 2006 2005 % 2006 2005 % Revenue $ 3,216.2 $ 2,939.4 9.4% $ 11,376.9 $ 10,481.1 8.5% Operating Income 474.2 426.1 11.3% 1,483.5 1,339.8 10.7% % Margin 14.7% 14.5% 13.0% 12.8% Net Interest Expense 24.1 16.5 91.6 59.2 Profit Before Tax 450.1 409.6 9.9%
Slide 4: 2006 vs. 2005 Earnings Per Share
2006 vs. 2005 Earnings Per Share Fourth Quarter Full Year 2006 2005 2006 2005 Earnings per Share: Basic $ 1.64 $ 1.42 $ 5.04 $ 4.38 Diluted 1.62 1.41 4.99 4.36 Growth Rate, Diluted 14.9 % 14.4% Weighted Average Shares (millions): Basic 169.1 178.2 171.4 180.4 Diluted 171.3 179.6 173.1 181.8 Dividend
Slide 5: 2006 Total Revenue Growth
2006 Total Revenue Growth Fourth Quarter Full Year $ % $ % Prior Period Revenue $ 2,939.4 $ 10,481.1 Foreign Exchange (FX) Impact (a) 85.8 2.9% 72.3 0.7% Acquisition Revenue (b) (3.5) -0.1% 25.9 0.2% Organic Revenue (c) 194.5 6.6% 797.6 7.6% Current Period Revenue $ 3,216.2 9.4% $ 11,376.9 8.5% (a)
Slide 6: 2006 Revenue By Discipline
2006 Revenue By Discipline Fourth Quarter Full Year PR PR 9.7% 10.1% CRM CRM 36.9% Advertising 35.9% Advertising 43.3% 42.8% Specialty Specialty 10.1% 11.2% Pie Chart $ Mix % Growth(a) $ Mix % Growth(a) Advertising 1,392.2 6.6% #### Advertising 4,866.4 6.0% CRM 1,187.4 15.0% #### CRM 4,081.1 13.0% P
Slide 7: 2006 Revenue By Geography
2006 Revenue By Geography Fourth Quarter Full Year Euro Euro Markets Markets United 22.3% United States States 20.3% 52.4% UK 54.4% UK 10.7% 10.8% Other Other 14.6% 14.5% $ Mix $ Growth(a) $ Mix $ Growth(a) United States $ 1,685.1 $ 109.6 United States $ 6,194.0 $ 450.1 Organic 108.4 Organic 415.5 A
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) Full Year 2006 2005 Net Income $ 864.0 $ 790.7 Stock-Based Compensation Expense 71.1 87.0 Windfall Tax Benefit on Stock Compensation - 15.8 Depreciation and Amortization 190.0 175.2 Other Non-Cash Items to Reconcile to Net Cash Provided by Operations 78.2 73
Slide 9: Current Credit Picture
Current Credit Picture Full Year 2006 2005 Operating Income (EBIT) (a) $ 1,484 $ 1,340 Net Interest Expense (a) $ 91.6 $ 59.2 EBIT / Net Interest 16.2 x 22.6 x Net Debt / EBIT 0.8 x 0.9 x Debt: Bank Loans (Due Less Than 1 Year) $ 11 $ 15 CP Issued Under $2.5B - 5 Year Revolver Due 6/23/11 - - Conver
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of December 31, 2006 Of Facility Outstanding Available Committed Facilities 5 Year Revolver (a) $ 2,500 $ - $ 2,500 Other Committed Credit Facilities 11 11 - Total Committed Facilities 2,511 11 2,500 Uncommitted Facilities (b) 352 - - (b) Total Credit Facili
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures Full Year 2006 New Subsidiary Acquisitions (a) $ 78 Affiliates to Subsidiaries (b) - Affiliates (c) 14 Existing Subsidiaries (d) 60 Earn-outs (e) 159 Total Acquisition Expenditures $ 311 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisition
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of December 31, 2006, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2007 2008 2009 2010 Thereafter Total $ 164 $ 108 $ 77 $ 83 $ 16 $ 448 (a) The ultimate
Slide 14: Potential Obligations
Potential Obligations In conjunction with certain transactions, Omnicom has agreed to acquire (at the sellers’ option) additional equity interests. If these rights are exercised, there would likely be an increase in our net income as a result of our increased ownership and the reduction of minority
Slide 15: Fourth Quarter Acquisitions: 180 Communications
Fourth Quarter Acquisitions 180 Communications 180 Communications is a full-service international advertising agency headquartered in Amsterdam, the Netherlands. 180 Communications has been one of the most awarded independent agencies of the past several years. 180 Communications will operate as an
Slide 16: Fourth Quarter Acquisitions: BBL/HFM
Fourth Quarter Acquisitions BBL/HFM BBL-HFM is a full-service communications agency, providing advertising, direct marketing, media planning and recruitment advertising services. The company is located in The Hague, the Netherlands, and its clients primarily comprise governmental and other public au
Slide 17: Fourth Quarter Acquisitions: Flamingo International
Fourth Quarter Acquisitions Flamingo International Flamingo International is a qualitative market research agency that specializes in delivering international marketing and product development services to consumer brand businesses. These services include brand consulting, focus group facilitation an
Slide 18: Fourth Quarter Acquisitions: Weapon
Fourth Quarter Acquisitions Weapon 7 Weapon 7 is a digital interactive television consulting agency providing advertisement design and production, digital interactive strategy consulting and mobile content production. The agency serves multinational clients in the United Kingdom and Europe. Weapon 7