Omnicom Group Inc. · NYSE:OMC
Omnicom — Q3 2021 Earnings Presentation
20 slides from Omnicom's earnings presentation, Oct 19, 2021
Slide 1: 2021 Third Quarter
2021 Third Quarter October 19, 2021
Slide 2: Highlights
Highlights Robust revenue growth Cost controls continue – Revenue growth 7.1% reported, 11.5% organic – EBIT up 8.0%, EBIT margin 15.8% – Strength across agencies, geographies, and – Net income per diluted share up 13.8% to $1.65 disciplines – Expect continued strength for balance of year Investing
Slide 3: Income Statement Summary
Income Statement Summary Third Quarter Year to Date 2021 2020 2021(b) 2020 (c) Revenue $ 3,435.0 $ 3,206.5 $ 10,433.6 $ 9,414.1 Operating Expenses (a) 2,893.4 2,705.1 8,858.2 8,430.0 Operating Profit 541.6 501.4 1,575.4 984.1 Operating Profit Margin % 15.8 % 15.6 % 15.1 % 10.5 % Net Interest Expense
Slide 4: Revenue Change
Revenue Change Third Quarter Year to Date $ %∆ $ %∆ Prior Period Revenue $ 3,206.5 $ 9,414.1 Foreign exchange rate impact (a) 51.8 1.6 % 298.3 3.2 % Acquisition revenue, net of disposition revenue (b) (190.5) (5.9)% (267.5) (2.8)% Organic growth (c) 367.2 11.5 % 988.7 10.5 % Current Period Revenue $
Slide 5: Revenue by Discipline
Revenue by Discipline CRM CRM Experiential Experiential 3.9% CRM 3.3% CRM CRM Execution CRM Execution Commerce & Support Commerce & Support and Brand 7.5% and Brand 7.2% Consulting Consulting PR 6.7% PR 6.4% 9.8% 10.5% CRM CRM Precision Healthcare Precision Marketing Healthcare 8.9% Marketing 9.0% 9
Slide 6: Revenue by Region
Revenue by Region Latin Middle East Latin America Middle East & Africa America 2.1% & Africa 1.7% 2.0% 1.6% Asia Asia Euro Euro Pacific Pacific Markets & Markets & 13.3% 12.5% Other Other Europe Europe 18.7% 18.1% United States United States 49.6% UK 51.9% UK 11.2% 10.7% Other North America Other No
Slide 7: Revenue by Industry Sector
Revenue by Industry Sector Year to Date T&E Telcom 8% Auto 10% 2021 2020 5% Pharmaceuticals and Health Care 16 % 16 % Consumer Products Food and Beverage 14 % 14 % Tech 8% Auto 10 % 10 % 10% Technology 10 % 9% Financial Services Travel and Entertainment 8% 7% 7% Consumer Products 8% 8% Retail Financ
Slide 8: Operating Expense Detail
Operating Expense Detail Third Quarter Year to Date 2021 % of Rev 2020(a) % of Rev 2021 % of Rev 2020(a)(b) % of Rev Revenue $ 3,435.0 $ 3,206.5 $ 10,433.6 $ 9,414.1 Operating expenses: Salary and related service costs 1,730.3 50.4 % 1,501.1 46.8 % 5,101.2 48.9 % 4,568.2 48.5 % Third-party service c
Slide 9: EBITA & Margins
EBITA & Margins Third Quarter Year to Date 2021 2020 2021 2020 Revenue $ 3,435.0 $ 3,206.5 $ 10,433.6 $ 9,414.1 Operating expenses (a) 2,893.4 2,705.1 8,858.2 8,430.0 Operating Profit 541.6 501.4 1,575.4 984.1 Operating Profit Margin % 15.8 % 15.6 % 15.1 % 10.5 % Add back: Amortization of intangible
Slide 10: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30 2021 2020 Free Cash Flow (a) $ 1,249.3 $ 1,135.3 Primary Uses of Cash: Dividends paid to Common Shareholders 443.0 422.7 Dividends paid to Noncontrolling Interest Shareholders 69.8 57.7 Capital Expenditures 42.6 50.0 Acquisition of Businesses and
Slide 11: Credit & Liquidity
Credit & Liquidity $ Millions Twelve Months Ended September 30 2021 2020 EBITDA (a) $ 2,401.8 $ 1,855.5 Total Debt / EBITDA 2.2 x 3.1 x Net Debt (b) / EBITDA 0.4 x 1.4 x Debt Bank Loans (Due Less Than 1 Year) $ 10.2 $ 23.6 CP & Borrowings Issued Under Revolver — — USD-denominated Senior Notes 4,150.
Slide 12: Historical Returns
Historical Returns Return on Invested Capital (ROIC)(a) Return on Equity(b) Twelve months ended September 30, 2021 26.4 % Twelve months ended September 30, 2021 47.0 % Twelve months ended September 30, 2020 17.7 % Twelve months ended September 30, 2020 37.7 % (a) Return on Invested Capital is After
Slide 13: Appendix
Appendix 13
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Nine Months Ended Twelve Months Ended September 30 September 30 September 30 2021 2020 2021 2020 2021 2020 Net Income (Loss) - Omnicom Group Inc. $ 355.6 $ 313.3 $ 991.6 $ 547.3 $ 1,389.7 $ 962.3 Net Income Attributed to Noncontrolling Interests 24.5 21.6
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Nine Months Ended September 30 2021 2020 Net Cash Provided by/(Used in) Operating Activities $ 238.6 $ (661.4) Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (1,010.7) (1,796.7) Free Cash Flow $ 1,249.3 $ 1,135.3 Nine Months Ended Septe
Slide 16: Free Cash Flow
Free Cash Flow Nine Months Ended September 30 2021 2020 Net Income $ 1,057.7 $ 592.3 Depreciation and Amortization of Intangible Assets 157.9 168.8 Share-Based Compensation 57.8 52.5 Gain on disposition of subsidiary (50.5) — COVID-19 Repositioning Costs — 277.9 Other Items to Reconcile to Net Cash
Slide 17: Operating Expense Detail - Constant $
Operating Expense Detail - Constant $ Third Quarter Year to Date (b) 2021 2021 C$(a) 2020 2021 2021 C$(a) 2020(b)(c) Operating expenses: Salary and related service costs $ 1,730.3 $ 1,705.4 $ 1,501.1 $ 5,101.2 $ 4,949.5 $ 4,568.2 Third-party service costs (d) 731.5 719.1 786.0 2,508.7 2,443.9 2,283.
Slide 18: Revenue by Discipline Trend
Revenue by Discipline Trend Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Advertising $ 1,973.5 $ 2,148.1 $ 2,078.6 $ 2,464.0 $ 1,933.3 $ 1,530.1 $ 1,827.6 $ 2,220.4 $ 2,003.7 $ 2,014.5 $ 1,820.6 CRM Precision Marketing 212.9 234.9 232.5 246.9 232.0 214.0 23
Slide 19: Omnicom Group Inc. Snapshot
Omnicom Group Inc. Snapshot CRM Precision CRM Commerce & CRM Execution & OMC Discipline Advertising CRM Experiential Public Relations Healthcare Marketing Brand Consulting Support LTM 3Q21 Revenues ($M) $8,059 $1,134 $886 $474 $1,016 $1,376 $1,245 % of total OMC 57% 8% 6% 3% 7% 10% 9% Note: For more
Slide 20: Disclosures
Disclosures The preceding materials have been prepared for use in the October 19, 2021 conference call on Omnicom’s results of operations for the three and nine months ended September 30, 2021. The call will be archived on the Internet at http:// investor.omnicomgroup.com/investor-relations/news-eve