Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2006 Earnings Presentation
18 slides from Omnicom's earnings presentation, Apr 25, 2006
Slide 1: Omnicom Group First Quarter 2006 Results Investor Presentation
Exhibit 99.2 Omnicom Group FIRST QUARTER 2006 RESULTS Investor Presentation April 25, 2006
Slide 2: Forward-Looking Statements
The following materials have been prepared for use in the April 25, 2006 conference call on Omnicom’s results of operations for the quarter ended March 31, 2006. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the stat
Slide 3: 2006 vs. 2005 P&L Summary
2006 vs. 2005 P&L Summary First Quarter 2006(1) 2005 % Change Revenue $ 2,562.9 $ 2,403.0 6.7% Operating Income 284.4 257.3 10.5% % Margin 11.1% 10.7% Net Interest Expense 15.1 12.1 Profit Before Tax 269.3 245.2 9.8% % Margin 10.5% 10.2% Taxes 90.9 86.1 % Tax Rate 33.8% 35.1% Profit After Tax 178.4
Slide 4: 2006 vs. 2005 Earnings Per Share
2006 vs. 2005 Earnings Per Share First Quarter 2006 2005 Earnings per Share: Basic $ 0.94 $ 0.82 Diluted 0.93 0.82 Weighted Average Shares (millions): Basic 176.7 182.6 Diluted 177.8 183.8 Dividend Declared Per Share $0.250 $0.225 3
Slide 5: 2006 Total Revenue Growth
2006 Total Revenue Growth First Quarter $ % Prior Period Revenue $ 2,403.0 Foreign Exchange (FX) Impact (a) (65.3) -2.7% Acquisition Revenue (b) 17.3 0.7% Organic Revenue (c) 207.9 8.7% Current Period Revenue $ 2,562.9 6.7% (a) To calculate the FX impact, we first convert the current period’s local
Slide 6: 2006 Revenue By Discipline
2006 Revenue By Discipline First Quarter PR 10.1% 2006 CRM 34.8% Advertising 43.1% Specialty 12.0% $ Mix % Growth (a) Advertising 1,104.7 5.2% #### CRM 892.1 10.0% #### PR 259.8 1.4% #### Specialty 306.3 7.1% #### (a) “Growth” is the year-over-year growth from the prior period. 5
Slide 7: 2006 Revenue By Geography
2006 Revenue By Geography First Quarter Euro 2006 Markets United 18.9% States 55.9% UK 10.7% Other 14.5% $ Mix $ Growth(a) United States $ 1,433.0 $ 120.9 Organic 104.0 Acquisition 16.9 International $ 1,129.9 $ 39.0 Organic 103.9 Acquisition 0.4 FX (65.3) $ Mix % Growth(a) United States $ 1,433.0 9
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 3 Months Ended March 31, 2006 2005 Net Income $ 165.7 $ 150.5 Stock-Based Compensation Expense 15.7 26.0 Windfall Tax Benefit on Stock Compensation - 13.6 Depreciation and Amortization 44.2 41.7 Other Non-Cash Items to Reconcile to Net Income 17.5 5.0 Other
Slide 9: Current Credit Picture
Current Credit Picture LTM ended March 31, 2006 2005 Operating Income (EBIT) (a) $ 1,367 $ 1,243 Net Interest Expense (a) $ 62.3 $ 38.2 EBIT / Net Interest 21.9 x 32.5 x Net Debt / EBIT 1.1 x 1.6 x Debt: Bank Loans (Due Less Than 1 Year) $ 22 $ 12 CP Issued Under $2.1B - 5 Year Revolver Due 5/23/10
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of March 31, 2006 Of Facility Outstanding Available Committed Facilities 364 Day Revolver Due 6/29/06 (a) $ 400 $ - $ 400 5 Year Revolver (b) 2,100 - 2,100 Other Committed Credit Facilities 14 14 - Total Committed Facilities 2,514 14 2,500 (c) Uncommitted Fa
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures First Quarter 2006 New Subsidiary Acquisitions (a) $ 30 Affiliates to Subsidiaries (b) - Affiliates (c) 1 Existing Subsidiaries (d) 14 Earn-outs (e) 13 Total Acquisition Expenditures $ 58 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisitio
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of March 31, 2006, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2006 2007 2008 2009 Thereafter Total $ 120 $ 136 $ 92 $ 49 $ 45 $ 442 (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 be an increase in our net income as a result of our increased ownership and the reduction of minority interest
Slide 15: First Quarter Acquisitions: Unisono Fieldmarketing
First Quarter Acquisitions Unisono Fieldmarketing Unisono Fieldmarketing (“Unisono”) is a diversified field marketing and merchandising organization specializing in building and maintaining solid market positions across China for multinational and local clients. Located in more than 25 cities, Uniso
Slide 16: First Quarter Acquisitions: GPlus Europe
First Quarter Acquisitions GPlus Europe GPlus Europe (GPlus) is a public relations firm that provides its clients with European Union focused communication strategies. GPlus’s approach is to position, brand and build a client’s reputation with the policy-makers, stake-holders and media within the Eu
Slide 17: First Quarter Acquisitions: Kaleidoscope Marketing Group
First Quarter Acquisitions Kaleidoscope Marketing Group Kaleidoscope Marketing Group (KMG) provides consulting services targeted towards the youth market. KMG channels brand specific information to schools, camps, daycare centers and other youth oriented organizations by providing product samples, e
Slide 18: First Quarter Acquisitions: Singer Direct
First Quarter Acquisitions Singer Direct Singer Direct is a specialist in the insert media business providing insert media buying and management services. Singer Direct assists clients in reaching consumer touch points that can accommodate an insert advertisement, and through its insert management d