Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2008 Earnings Presentation
18 slides from Omnicom's earnings presentation, Apr 22, 2008
Slide 1: First Quarter 2008 Results
Omnicom Group FIRST QUARTER 2008 RESULTS Investor Presentation April 22, 2008
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the April 22, 2008 conference call on Omnicom’s results of operations for the quarter ended March 31, 2008. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the stat
Slide 3: 2008 vs. 2007 P&L Summary
2008 vs. 2007 P&L Summary First Quarter 2008 2007 % Revenue $ 3,195.4 $ 2,840.6 12.5% Operating Income 350.8 315.5 11.2% % Margin 11.0% 11.1% Net Interest Expense 11.0 18.3 Profit Before Tax 339.8 297.2 14.3% % Margin 10.6% 10.5% Taxes 115.2 100.5 % Tax Rate 33.9% 33.8% Profit After Tax 224.6 196.7
Slide 4: 2008 vs. 2007 Earnings Per Share
2008 vs. 2007 Earnings Per Share(a) First Quarter 2008 2007 Earnings per Share: Basic $ 0.65 $ 0.55 Diluted 0.65 0.55 Growth Rate, Diluted 18.2 % Weighted Average Shares (millions): Basic 318.6 331.1 Diluted 320.9 335.5 Dividend Declared Per Share $0.15 $0.125 (a) In connection with our two-for-one
Slide 5: 2008 Total Revenue Growth
2008 Total Revenue Growth First Quarter $ % Prior Period Revenue $ 2,840.6 Foreign Exchange (FX) Impact (a) 145.6 5.1% Acquisition Revenue (b) 28.0 1.0% Organic Revenue (c) 181.2 6.4% Current Period Revenue $ 3,195.4 12.5% (a) To calculate the FX impact, we first convert the current period’s local c
Slide 6: 2008 Revenue By Discipline
2008 Revenue By Discipline First Quarter 2008 PR 9.9% CRM 36.5% Advertising 43.5% Specialty 10.1% (a) $ Mix % Growth Advertising 1,391.3 13.5% #### CRM 1,167.5 14.8% #### PR 315.0 7.1% 9.9% Specialty 321.6 5.8% #### (a) “Growth” is the year-over-year growth from the prior period. 5
Slide 7: 2008 Revenue By Geography
2008 Revenue By Geography First Quarter 2008 Euro Markets United 21.9% States 52.0% UK 10.7% Other 15.4% (a) $ Mix $ Growth United States $ 1,661.2 $ 117.3 Organic 103.2 Acquisition 14.1 International $ 1,534.2 $ 237.5 Organic 78.0 Acquisition 13.9 FX 145.6 (a) $ Mix % Growth United States $ 1,661.2
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 3 Months Ended March 31, 2008 2007 Net Income $ 208.7 $ 183.0 Stock-Based Compensation Expense 15.2 18.4 Depreciation and Amortization 57.2 47.8 Other Non-Cash Items to Reconcile to Net Cash Provided by Operations 24.7 20.6 Other Changes in Working Capital (
Slide 9: Current Credit Picture
Current Credit Picture 3 Months ended March 31, 2008 2007 (a) Operating Income (EBIT) $ 1,695 $ 1,515 (a) Net Interest Expense $ 66.7 $ 94.8 EBIT / Net Interest 25.4 x 16.0 x Net Debt / EBIT 1.3 x 1.3 x Debt: Bank Loans (Due Less Than 1 Year) $ 20 $ 12 CP Issued Under $2.5B - Revolver Due 6/23/11 -
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of March 31, 2008 Of Facility Outstanding Available Committed Facilities (a) Revolver $ 2,500 $ - $ 2,500 Other Committed Credit Facilities 20 20 - Total Committed Facilities 2,520 20 2,500 (b) (b) Uncommitted Facilities 510 - - Total Credit Facilities $ 3,0
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures First Quarter 2008 (a) New Subsidiary Acquisitions $ 40 (b) Affiliates to Subsidiaries - (c) Affiliates 9 (d) Existing Subsidiaries 7 (e) Earn-outs 27 Total Acquisition Expenditures $ 83 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisition
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of March 31, 2008, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2008 2009 2010 2011 Thereafter Total $ 171 $ 97 $ 81 $ 28 $ 2 $ 379 (a) The ultimate paym
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 likely be an increase in our net income as a result of our increased ownership and the reduction of minority i
Slide 15: First Quarter Acquisitions: A Vista Events
First Quarter Acquisitions A Vista Events A Vista Events specializes in event design and production to create extraordinary environments for individual, corporate and institutional client events. A Vista Events is a member of the Radiate Group and is located in Beltsville, Maryland. 14
Slide 16: First Quarter Acquisitions: The Kern Organization
First Quarter Acquisitions The Kern Organization The Kern Organization (“TKO”) is a full service direct marketing agency providing customer acquisition and lead generation services to Fortune 1000 companies using a wide array of offline and online media. The company is located in Woodland Hills, Cal
Slide 17: First Quarter Acquisitions: Lew'Lara
First Quarter Acquisitions Lew’ Lara Lew’Lara is a full-service advertising agency. Established in 1992, it has grown into one of the most successful and highly regarded agencies in the market, with strong relationships with leading national and international advertisers and has consistently been ra
Slide 18: First Quarter Acquisitions: Shift
First Quarter Acquisitions Shift Shift is an interactive agency formed in 1995 specializing in web- based communications and multi-media offerings. The agency has a record of developing international award-winning web solutions. Shift is based in New Zealand, and has offices in Auckland and Wellingt