Slide 1: Fourth Quarter & Year End 2008 Results
0) Management Presentation February 24, 2009 Fourth Quarter & Year End 2008 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K})PARTNERS Forward Looking Statements and Other Information ‘This presentation, including ous “2008 Financial Outlook”. contains forward-looking statements. The Company's representatives may also make forward- Jooking statements orally ffom time to time. Statements in this presentation that are
Slide 3: 2008 Actual Results vs. Guidance
MDC(K)PARTNERS of 2008 Actual Results vs. Guidance 2008 ‘Actual Original (US$ inmiltions) Guidance Revenue $600 - $610 million MDC's Share of EBITDA $61 -$64 million Free Cash Flow Note: See appendix for definitions of non-GAAP measures. $30 -$35 million
Slide 4: Summary of Consolidated Results
MDC(K)PARTNERS Summary of Consolidated Results @3$ eaitens Three Months Ended December 31, ‘Twelve Months Ended December 31, 2008 2007 _% Change 2008 2007 __% Change Revenue S$ 14a7 $1521 49% S 5846 $5339 95 % ‘Operating Expenses Cost of services sold 99.7 964 35% 392.1 3433 12% SG&A 350 371 62% 137
Slide 5: Summary of Segment Results — Revenue
MDC (K)PARTNERS Summary of Segment Results — Revenue ss iominieas) ‘Three Months Ended December 31, ‘Twelve Months Ended December 31, 2008 2007 % Change 2008 2007 % Change Revenue Strategic Marketing Services S$ 970 S$ 840 $ 3334 $ 3072 8s % Customer Relationship Management 338 1340 1130 18.6 % Spec
Slide 6: Fourth Quarter 2008 Revenue Growth by Segment
MDC(K)PARTNERS Strategic Customer Specialized Weighted ‘Marketing Relationship Communication Average Services Services Total Acquisition Growth 3 - . Foreign Exchange Growth & Other 2.4% -0.1% 9.9% 3.5% Total 3.5% -11.9% 18.5% 49%
Slide 7: Year to Date 2008 Revenue Growth by Segment
MDC(K)PARTNERS Year to Date 2008 Revenue Growth by Segment Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services Management Services Total Acquisition Growth 1.9% Foreign Exchange Growth & Other 0.0% 0.1% -0.5% Total 8.5% 18.6% 3.2% 9.5%
Slide 8: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA @spamsttons) ‘Three Months Ended December 31, “Twelve Months Ended December 31, 2008 2007 % Change 2008 2007 % Change EBITDA Strategic Marketing Services $172 $ 183 (62) % $555 $548 13% margin 19.8% 21.8% 16.6% 17.8% (Customer Relationship Managemen
Slide 9: Summary of Segment Results — MDC’s Share of EBITDA
MDC(K)PARTNERS Summary of Segment Results — MDC’s Share of EBITDA (55 amatiens) ‘Three Months Ended December 31, Twelve Months Ended December 31, 2008 2007 % Change 2008 2007 % Change MDC EBITDA ‘Strategic Marketing Services S65 S$ 148 Us % S$ S11 $301 306 % Customer Relationship Management 22 3.0 2
Slide 10: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow Three Months Ended December 31, ‘Twelve Months Ended December 31, (USS in millions) 2008 2007 2008 2007 ‘MDC EBITDA S171 $179 $61.0 342.1 Capital Expenditures (4.0) 60) (144) (9.5) Cash Taxes (0.1) (0) (1.0) (2) Cash Interest, net G9) (cm) (27) (3.2) Amount and percenta
Slide 11: Cash Flow Data
10 MDC(K)PARTNERS Cash Flow Data ‘Twelve Months Ended December 31, (USS in millions) 2008 2007 Cash flows from continuing operating activities $60.9 $3.1 Discontinued operations BS) Amounts and percentages may not foot die 0 rounding
Slide 12: Liquidity Profile
11 Liquidity Profile MDC(K)PARTNERS Available Liquidity at December 31, 2008 (05S inmnittions Commitment Under Facility 185.0 Revolver 97 Term Loan A 60.0 Delayed Draw Term Loan B 70.0 139.7 Letters of Credit 47 Funds Available Under Facility S$ 406 Available Cash. 32.9 Liquidity S735
Slide 13: Temporal Put Obligations and Impact on EBITDA
12 MDC(K)PARTNERS Temporal Put Obligations and Impact on EBITDA The following estimates assume that the underlying agencies continue to perform at their current levels: Estimated Put Impact at December 31, 2008, ‘Payment Consideration Incremental (055 iain) Cash Stock Total EBITDA in Period 2009 $65
Slide 14: 2009 Financial Outlook
13 2009 Financial Outlook Implied 2009 Year over Year Growth Revenue MDC's Share of EBITDA. Free Cash Flow ‘Note: See appendix for definitions of non-GAAP measures, 2009 guidance implies organic growth of +3% to +6% for 2009. MDC(K)PARTNERS
Slide 15: Appendix
Appendix MDC(K)PARTNERS
Slide 16: Summary of Restated Quarterly 2008 vs. 2007 Results
15 MDC(K)PARTNERS Summary of Restated Quarterly 2008 vs. 2007 Results a @ @ Qa Total (Six itions) 20072008 20072008 2007-2008 20072008 2007-2008 Revenue $1146 $ 1409 $ 1314 S$ 1569 $ 1358 $ 1421 $ 1521 S$ 1447 —-§ 5339S 5846 EBITDA 95 129 152-200 14400175 BS 187 26 2 margin % 83% 9.2% 115% 12.8% 10
Slide 17: Definition of Non-GAAP Measures
16 MDC(K)PARTNERS Definition of Non-GAAP Measures - EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization and stock-based compensation - MDC’s Share of EBITDA: MDC’s Share of EBITDA is a non-GAAP measure, that represents operating profit plus depre