Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2007 Earnings Presentation
18 slides from Omnicom's earnings presentation, Apr 24, 2007
Slide 1: Omnicom Group First Quarter 2007 Results
Exhibit 99.2 Omnicom Group FIRST QUARTER 2007 RESULTS Investor Presentation April 24, 2007
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the April 24, 2007 conference call on Omnicom’s results of operations for the quarter ended March 31, 2007. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the stat
Slide 3: 2007 vs. 2006 P&L Summary
2007 vs. 2006 P&L Summary First Quarter 2007 2006(1) % Revenue $ 2,840.6 $ 2,562.9 10.8% Operating Income 315.5 284.4 10.9% % Margin 11.1% 11.1% Net Interest Expense 18.3 15.1 Profit Before Tax 297.2 269.3 10.4% % Margin 10.5% 10.5% Taxes 100.5 90.9 % Tax Rate 33.8% 33.8% Profit After Tax 196.7 178.
Slide 4: 2007 vs. 2006 Earnings Per Share
2007 vs. 2006 Earnings Per Share First Quarter 2007 2006 Earnings per Share: Basic $ 1.11 $ 0.94 Diluted 1.09 0.93 Growth Rate, Diluted 17.2% Weighted Average Shares (millions): Basic 165.6 176.7 Diluted 167.8 177.8 Dividend Declared Per Share $0.25 $0.25 3
Slide 5: 2007 Total Revenue Growth
2007 Total Revenue Growth First Quarter $ % Prior Period Revenue $ 2,562.9 Foreign Exchange (FX) Impact (a) 87.3 3.4% Acquisition Revenue (b) 2.1 0.1% Organic Revenue (c) 188.3 7.3% Current Period Revenue $ 2,840.6 10.8% (a) To calculate the FX impact, we first convert the current period’s local cur
Slide 6: 2007 Revenue By Discipline
2007 Revenue By Discipline First Quarter PR 2007 10.4% CRM 35.8% Advertising 43.1% Specialty 10.7% $ Mix % Growth(a) Advertising 1,225.7 10.6% #### CRM 1,016.7 14.2% #### PR 294.2 13.6% #### Specialty 304.0 -0.8% #### (a) “Growth” is the year-over-year growth from the prior period. 5
Slide 7: 2007 Revenue By Geography
2007 Revenue By Geography First Quarter Euro 2007 Markets United 20.3% States 54.3% UK 11.5% Other 13.9% $ Mix $ Growth(a) United States $ 1,543.9 $ 110.9 Organic 110.5 Acquisition 0.4 International $ 1,296.7 $ 166.8 Organic 77.8 Acquisition 1.7 FX 87.3 $ Mix % Growth(a) United States $ 1,543.9 7.7%
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 3 Months Ended March 31, 2007 2006 Net Income $ 183.0 $ 165.7 Stock-Based Compensation Expense 18.4 15.7 Depreciation and Amortization 47.8 44.2 Other Non-Cash Items to Reconcile to Net Cash Provided by Operations 20.6 17.5 Other Changes in Working Capital (
Slide 9: Current Credit Picture
Current Credit Picture 3 Months ended March 31, 2007 2006 Operating Income (EBIT)(a) $ 1,515 $ 1,367 Net Interest Expense(a) $ 94.8 $ 62.3 EBIT / Net Interest 16.0 x 21.9 x Net Debt / EBIT 1.3 x 1.1 x Debt: Bank Loans (Due Less Than 1 Year) $ 12 $ 22 CP Issued Under $2.5B - Revolver Due 6/23/11 - -
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of March 31, 2007 Of Facility Outstanding Available Committed Facilities Revolver(a) $ 2,500 $ - $ 2,500 Other Committed Credit Facilities 12 12 - Total Committed Facilities 2,512 12 2,500 (b) Uncommitted Facilities(b) 353 - - Total Credit Facilities $ 2,865
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures First Quarter 2007 New Subsidiary Acquisitions(a) $ 3 Affiliates to Subsidiaries(b) - Affiliates(c) - Existing Subsidiaries(d) 19 Earn-outs(e) 2 Total Acquisition Expenditures $ 24 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisitions of a
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of March 31, 2007, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2007 2008 2009 2010 Thereafter Total $ 166 $ 112 $ 69 $ 81 $ 22 $ 450 (a) The ultimate pa
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 i
Slide 15: First Quarter Acquisitions: Doom & Dickson
First Quarter Acquisitions Doom & Dickson Doom & Dickson is a full service advertising agency headquartered in Amsterdam, the Netherlands. The agency was named Dutch Agency of the Year in 2004. The agency will operate as an independent agency within the TBWA\Netherlands group. 14
Slide 16: First Quarter Acquisitions: Karakter
First Quarter Acquisitions Karakter Karakter is a corporate branding consultancy serving clients across the UK and Europe with an emphasis on emerging markets, B2B companies and B2C companies with service-orientated offerings. Karakter’s services include brand strategy consulting, research, position
Slide 17: First Quarter Acquisitions: Mango Mobile
First Quarter Acquisitions Mango Mobile Mango Mobile is a mobile marketing company that has assembled one of the most advanced technology platforms for mobile message and campaign management. The company is located in Plano, Texas and will become a member of The Radiate Group of Companies. 16
Slide 18: First Quarter Acquisitions: Redurban
First Quarter Acquisitions Redurban Redurban is an interactive advertising agency that develops strategies and concepts which use specific creative and technical features of online media. Redurban services mainly Dutch based clients across a number of different industries. Located in Amsterdam, the