Slide 1: Management Presentation – Third Quarter 2007 Results
Management Presentation November 8, 2007 Third Quarter 2007 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(})PARTNERS Forward Looking Statements and Other Information This presentation contains forward-looking statements. The Company's representatives may also make forward-looking statements orally from time to time Statements in this presentation that are not historical facts, including statements a
Slide 3: Summary of Consolidated Results
Summary of Consolidated Results MDC(K)PARTNERS 38 millions) Three Months Ended September 30, ‘Nine Months Ended September 30, 2007 2006 % Change 2007 2006 % Change ‘Revenue $ 1401 $ 1011 38.5% $ 3948 $§ 2993 319 % Operating Expenses Cost of services sold 90.9 572 59.0 % 257.2 178 47% SG&A 36.6 36.7
Slide 4: Normalized Results
MDC(})PARTNERS Normalized Results Three Months September 30, Nine Months September 30, USS in millions) 2007 2006 2007 2006 Reported Revenue $ 1401 $ 1olt $ 3948 S$ 2993 ‘MFP revenues - 2.8) (22) (89) Consolidation of equity affiliates - 52 - 158 Client termination payment = = = (5.3) Adjusted Reven
Slide 5: Summary of Segment Results — Revenue
MDC(K)PARTNERS Summary of Segment Results — Revenue (€55 iw micas) Three Months Ended September 30, ‘Nine Months Ended September 30, 2007 2006 % Change 2007 2006 % Change Revenue Strategic Marketing Services S$ W1l $ 589 343% $281 $ 1714 331 % Customer Relationship Management 29.9 20.9 428 % TA 60.7
Slide 6: Q3 2007 Marketing Communications Revenue Growth by Segment
MDC(K)PARTNERS Q3 2007 Marketing Communications Revenue Growth by Segment Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services Management Services Total Acquisition Growth 8.2% z 2.4% 53% Foreign Exchange Growth 0.7% = 6.0% 1.7% Consolidation of Equity Affili
Slide 7: YTDQ3 2007 Marketing Communications Revenue Growth by Segment
MDC(K)PARTNERS YTDQ3 2007 Marketing Communications Revenue Growth by Segment Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services ‘Management Services Total Acquisition Growth 4.0% = 0.8% 24% Foreign Exchange Growth 0.3% E 2.4% 0.7% Consolidation of Equity Af
Slide 8: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA (US$ ilions) ‘Three Months Ended September 30, Nine Months Ended September 30, 2007 2006 % Change 2007 2006 % Change EBITDA Strategic Marketing Services $138 $ 100 378% S$ 379 $ 325 16.6 % margin 175% 17.0% 16.6% 19.0% Customer Relationship Manageme
Slide 9: MDC EBITDA by Segment
MDC(K)PARTNERS (255m mations) ‘Three Months Ended September 30, 1¢ Months Ended September 30, 2007 2006 36 Change 2007 2006 % Change ‘MDC EBITDA Strategic Marketing Services $96 8.6 Nd % S$ 58 $ 245 53% Customer Relationship Management 28 13 DLd % 68 43 611 % Specialized Comamnication Services 23 07
Slide 10: Cash EPS Reconciliation
Cash EPS Reconciliation MDC(K)PARTNERS (USS in millions) Three Months Ended September 30, ‘Nine Months Ended September 30, 2007 2006 2007 2006 ‘Loss from Continuing Operations (668) (29) (182) 84) Depreciation & Amortization 108 15 247 202 Stock Based Compensation 19 16 53 70 ‘Non-cash Unrealized Fo
Slide 11: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow Three Months Ended September 30, Nine Months Ended September 30, (US$ in millions) 2007 2006 2007 2006 MDC EBITDA $93 $7.2 $213 $20.9 Capital Expenditures ) 75) (15.0) (18.8) Cash Taxes 02) @1) (2) 09) Cash Interest G8) (1.6) 1) (63) Free Cash Flow (82.2) (82.0) ($4.0)
Slide 12: Liquidity
11 MDC(K)PARTNERS Liquidity Available Liquidity at September 30, 2007 (USS in mallions) ‘Commitment Under Facility S 185.0 Revolver 25.6 Term Loan A 60.0 Delayed Draw Term Loan 15.0 100.6 Letters of Credit 65 Funds Available Under Facility S$ 719 Available Cash 52 Liquidity S$ 831
Slide 13: Potential Contractual Put/Call Obligations and Impact on EBITDA
MDC(K)PARTNERS Potential Contractual Put/Call Obligations and Impact on EBITDA Estimated Put Impact at September 30, 2007 - PRO FORMA Payment Consideration Incremental (US$ in millions) Cash Stock Total EBITDA in Period 2007 $6.3 $0.2 $6.5 $3.0 2008 24 0.2 2.6 0.5 2009 4.2 1.0 52 0.8 2010 28.6 72 35
Slide 14: 2007 Financial Outlook
13 2007 Financial Outlook (USS i mons, except par care amon) MDC(K)PARTNERS Marketing Corporate Communications Expenses Consolidated Original Updated) Original Updated Original Updated Revenue 490-8500 $515-$525 3 = 490-500 515-9525 ‘DC's Share of EBITDA © $59.5 - $60.5 ($19.5 - $20.5) $39.0 - $41.0
Slide 15: Appendix
Appendix MDC(K)PARTNERS
Slide 16: Quarter 2007 MDC Adjusted EBITDA Reconciliation
MDC(K)PARTNERS Quarter Ended September 30, 2007 MDC Adjusted EBITDA Reconciliation Strategic Customer Specialized ‘Marketing Relationship Communication Corporate & Services Management __ Services Other Total ‘MDC's Share of EBITDA* $9,634 $2,778 $2,260 (85,398) $9.74 Costs related to CFO change - -
Slide 17: Quarter 2006 MDC Adjusted EBITDA Reconciliation
16 MDC(K)PARTNERS Quarter Ended September 30, 2006 MDC Adjusted EBITDA Reconciliation Strategic Customer Specialized ‘Marketing Relationship Communication Corporate & Services __ Management Services Other Total ‘MDC's Share of EBITDA* $8,647 $1,255 S719 (3.46) $7,175 Losses from Margeotes Fertitta P
Slide 18: YTD MDC Adjusted EBITDA Reconciliation
17 MDC(K)PARTNERS YTD September 30, 2007 MDC Adjusted EBITDA Reconciliation Strategic Customer Specialized Marketing Relationship Communication Corporate & Services Management Services Other Total MDC's Share of EBITDA** $25,763 $6,930 $4,135 (815,523) $21,305 Costs related to CFO change - - - 1883
Slide 19: YTD September 30, 2006 MDC Adjusted EBITDA Reconciliation
18 MDC(K)PARTNERS YTD September 30, 2006 MDC Adjusted EBITDA Reconciliation Strategic Customer Specialized Marketing Relationship Communication Corporate & Services Management Services Other Total ‘MDC's Share of EBITDA** $24,465 $4,302 $5,461 (813.341) $20,887 Losses from Margeotes Fertitta Powell
Slide 20: Definition of Non-GAAP Measures
19 - EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and - Organic Growth: Organic revenue growth is a non-GAAP measure that refers to growth in revenues - Cash Earnings: Cash earings is a non-GAAP measure that represents loss from continuing operations » Fre