Omnicom Group Inc. · NYSE:OMC
Omnicom — Q3 2005 Earnings Presentation
13 slides from Omnicom's earnings presentation, Oct 25, 2005
Slide 1: Third Quarter 2005 Results Investor Presentation
Exhibit 99.2 OmnicomGroup THIRD QUARTER 2005 RESULTS Investor Presentation October 25, 2005 OmnicomGroup OmnicomGroup The following materials have been prepared for use in the October 25, 2005 conference call on Omnicom’s results of operations for the quarter and nine months ended September 30, 2005
Slide 2: 2005 vs. 2004 P&L Summary and Earnings Per Share
% % 2005 2004 Change 2005 2004 Change Revenue $2,522.9 $2,319.0 8.8% $ 7,541.7 $ 6,958.1 8.4% Operating Income 274.5 247.4 11.0% 913.7 820.5 11.4% % Margin 10.9% 10.7% 12.1% 11.8% Net Interest Expense 16.3 8.8 42.7 26.6 Profit Before Tax 258.2 238.6 8.2% 871.0 793.9 9.7% % Margin 10.2% 10.3% 11.5% 1
Slide 3: 2005 Total Revenue Growth
Prior Period Revenue $2,319.0 $6,958.1 Foreign Exchange (FX) Impact(a) 11.6 0.5% 113.2 1.6% Acquisition Revenue(b) (6.8) -0.3% (25.9) -0.4% Organic Revenue(c) 199.1 8.6% 496.3 7.1% Current Period Revenue $2,522.9 8.8% $7,541.7 8.4% (a) To calculate the FX impact, we first convert the current period’
Slide 4: 2005 Revenue By Discipline
$ Mix % Growth(a) Advertising 3,283.4 9.3% CRM 2,580.2 8.2% PR 778.4 2.4% Specialty 899.7 11.3% (a) “Growth” is the year-over-year growth from the prior period. 5 2005 Revenue By Geography $ Mix $ Growth(a) United States $1,428.6 $167.3 Organic 153.6 Acquisition 13.7 International $1,094.3 $ 36.6 Or
Slide 5: 2005 Revenue By Geography
Acquisition (20.5) FX 11.6 $ Mix % Growth(a) United States $1,428.6 13.3% Euro Currency Markets 476.3 1.3% United Kingdom 260.1 1.7% Other 357.9 7.8% $ Mix $ Growth(a) United States $4,168.4 $386.9 Organic 351.2 Acquisition 35.7 International $3,373.3 $196.7 Organic 145.1 Acquisition (61.6) FX 113.2
Slide 6: Cash Flow - GAAP Presentation (condensed)
Net Income $ 538.1 $ 487.0 Stock-Based Compensation Expense 82.0 99.5 Depreciation and Amortization 128.1 128.8 Other non-cash items to reconcile to net income 41.7 42.1 Other changes in Working Capital (1,094.3) (910.0) Net Cash Used in Operations (304.4) (152.6) Capital Expenditures (102.4) (103.3
Slide 7: After-Tax Free Cash Flow
Stock Repurchases, (net of proceeds) (d) 560.9 409.8 (a) The After-Tax Free Cash Flow numbers presented above are a non-GAAP measure. They exclude changes in working capital and certain other investing and financing activities. This presentation reflects the metrics used by management to assess our
Slide 8: Current Liquidity Picture
Current Liquidity Picture As of September 30, 2005 Total Amount of Facility Outstanding Available Committed Facilities 364 Day Revolver Due 6/29/06 (a) $ 400 $ — $ 400 CP issued – backed by 5 Year Revolver (b) 2,100 160 1,940 Other Committed Credit Facilities 16 16 — Total Committed Facilities 2,516
Slide 9: Return on Equity
(a) “Return on Equity” is constant dollar based Net Income for the given period divided by the shareholders’ equity at the end of the prior period which has also been adjusted to a constant dollar basis. In connection with our adoption on January 1, 2004 of SFAS 123 — “Accounting for Stock-Based Com
Slide 10: Acquisitions Summary: Acquisition Related Expenditures
9 Months YTD 2005 New Subsidiary Acquisitions (a) $ 18 Affiliates to Subsidiaries (b) — Affiliates (c) 1 Existing Subsidiaries (d) 44 Earn-outs (e) 185 Total Acquisition Expenditures $248 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisitions of a majority interest in new
Slide 11: Potential Obligations
Potential Obligations In conjunction with certain transactions Omnicom has agreed to acquire (at the sellers’ option) additional equity interests. The following is a calculation of these potential future obligations (as of September 30, 2005), assuming these underlying acquired agencies continue to
Slide 12: Third Quarter Acquisitions
Eventive Marketing Eventive Marketing specializes in planning and managing promotion events to build brand awareness for its clients. Capabilities include event marketing, sponsorship activation, mobile marketing, sampling programs, retail-tainment and multicultural marketing. The company is located
Slide 13: Third Quarter Acquisitions
MDG Development Group MDG Development Group (MDG), a medical education consultancy, brings a wealth of experience across industry marketing and strategic planning, academic and industry-based clinical research and development, and medical education program development and execution. Core capabilitie