Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2022 Earnings Presentation
23 slides from Omnicom's earnings presentation, Apr 19, 2022
Slide 1: 2022 First Quarter
2022 First Quarter April 19, 2022
Slide 2: First Quarter Highlights
First Quarter Highlights Revenue momentum Profitable growth – 11.9% organic revenue growth – Operating profit margin of 13.7%, as adjusted for charges of $113.4 million arising from the – Strong organic growth in all disciplines and effects of the war in Ukraine(a)(b) geographies – Net income per di
Slide 3: Income Statement Summary
Income Statement Summary First Quarter 2022 2021 Revenue $ 3,410.3 $ 3,426.9 Operating Expenses (a) 2,943.9 2,961.5 Charges arising from the effects of the war in Ukraine(b) 113.4 — Operating Profit 353.0 465.4 Net Interest Expense 42.8 47.5 Income Tax Expense(b) 115.5 111.9 Loss from Equity Method
Slide 4: Adjusted Non-GAAP Operating Profit & Adjusted EBITA
Adjusted Non-GAAP Operating Profit & Adjusted EBITA First Quarter Reported Non-GAAP Non-GAAP 2022 Reported 2022 Adjustments(b) Adjusted 2021 Revenue $ 3,410.3 $ — $ 3,410.3 $ 3,426.9 Operating expenses 3,057.3 (113.4) 2,943.9 2,961.5 Operating Profit 353.0 113.4 466.4 465.4 Operating Profit Margin %
Slide 5: Adjusted Non-GAAP Net Income & EPS
Adjusted Non-GAAP Net Income & EPS First Quarter Reported Non-GAAP Non-GAAP 2022 Reported 2022 Adjustments(b) Adjusted 2021 Net Income - Omnicom Group Inc., Reported(a) $ 173.8 $ — $ 173.8 $ 287.8 Charges arising from the effects of the war in Ukraine — 113.4 113.4 — Income tax expense related to th
Slide 6: Revenue Change
Revenue Change First Quarter $ %∆ Prior Period Revenue $ 3,426.9 Foreign exchange rate impact (a) (85.0) (2.5)% Acquisition revenue, net of disposition revenue (b) (339.6) (9.9)% Organic growth (c) 408.0 11.9 % Current Period Revenue $ 3,410.3 (0.5)% (a) Foreign exchange rate impact: calculated by t
Slide 7: Revenue by Discipline
Revenue by Discipline % Organic First Quarter Revenue % of Rev % Growth (b) Growth (a) Advertising & Media $ 1,769.4 51.9 % (11.7)% 9.1 % Precision Marketing 336.1 9.8 % 24.7 % 20.3 % Commerce & Brand Consulting 237.9 7.0 % 10.9 % 13.8 % Experiential 142.5 4.2 % 61.2 % 68.0 % Execution & Support 254
Slide 8: Revenue by Region
Revenue by Region % Organic First Quarter Revenue % of Rev % Growth (b) Growth (a) United States $ 1,724.6 50.6 % (7.7)% 10.6 % Other North America 114.4 3.3 % 9.6 % 9.6 % UK 388.7 11.4 % 9.0 % 10.3 % Euro Markets & Other Europe 603.3 17.7 % 3.2 % 13.8 % Asia Pacific 429.7 12.6 % 7.4 % 11.1 % Latin
Slide 9: Revenue by Industry Sector
Revenue by Industry Sector First Quarter 2022 2021 Pharmaceuticals and Healthcare 15 % 15 % Food and Beverage 14 % 14 % Technology 11 % 9% Auto 10 % 10 % Consumer Products 8% 8% Financial Services 7% 7% Retail 7% 7% Travel and Entertainment 6% 10 % Telecommunications 5% 5% Government 3% 3% Services
Slide 10: Operating Expense Detail
Operating Expense Detail First Quarter 2022 % of Rev 2021(c) % of Rev Revenue $ 3,410.3 $ 3,426.9 Operating expenses: Salary and related service costs 1,794.6 52.6 % 1,649.2 48.1 % Third-party service costs (a) 697.2 20.4 % 895.8 26.1 % Occupancy and other costs 300.2 8.8 % 291.6 8.5 % Charges arisi
Slide 11: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2022 2021 Free Cash Flow (a) $ 339.7 $ 382.6 Primary Uses of Cash: Dividends paid to Common Shareholders 147.4 140.1 Dividends paid to Noncontrolling Interest Shareholders 14.0 13.6 Capital Expenditures 23.2 12.4 Acquisition payments, including payme
Slide 12: Credit & Liquidity
Credit & Liquidity $ Millions Twelve Months Ended March 31 2022 2021 EBITDA (a) $ 2,299.5 $ 1,862.9 Total Debt / EBITDA 2.5 x 3.1 x Net Debt (b) / EBITDA 0.7 x 0.5 x Debt Bank Loans (Due Less Than 1 Year) $ 12.4 $ 5.9 CP & Borrowings Issued Under Revolver — — USD-denominated Senior Notes 4,150.0 4,6
Slide 13: Historical Returns
Historical Returns Return on Invested Capital (ROIC)(a) Return on Equity(b) Twelve months ended March 31, 2022 26.4 % Twelve months ended March 31, 2022 41.7 % Twelve months ended March 31, 2021 19.9 % Twelve months ended March 31, 2021 34.5 % (a) Return on Invested Capital is After Tax Reported Ope
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended March 31 March 31 2022 2021 2022 2021 Net Income - Omnicom Group Inc. $ 173.8 $ 287.8 $ 1,293.8 $ 975.1 Net Income Attributed to Noncontrolling Interests 20.8 18.2 102.4 80.0 Income (Loss) From Equity Method Investments (0.1) — 7.4 (1.5
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Charges arising from the effects of the war in Ukraine Three Months Ended March 31, 2022 Non-GAAP Adjusted EBITA Operating Profit Net Income - Omnicom Group Inc. $ 173.8 $ 173.8 Net Income Attributed To Noncontrolling Interests 20.8 20.8 Income (Loss) From Equity Method Inve
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Charges arising from the effects of the war in Ukraine Three Months Ended March 31, 2022 Non-GAAP Adjusted Net Income - Net Income per Diluted Shares Omnicom Group Inc. Share - Diluted Net Income - Omnicom Group Inc. - Reported $ 173.8 209.8 $ 0.83 Charges arising from the e
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 31 2022 2021 Net Cash Used in Operating Activities $ (544.5) $ (460.9) Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (884.2) (843.5) Free Cash Flow $ 339.7 $ 382.6 Three Months Ended March 31 2022 2021 Net Decr
Slide 19: Free Cash Flow
Free Cash Flow Three Months Ended March 31 2022 2021 Net Income $ 194.6 $ 306.0 Depreciation and Amortization of Intangible Assets 55.2 53.3 Share-Based Compensation 20.0 20.8 Non-cash charge related to the effects of the war in Ukraine 65.8 — Other Items to Reconcile to Net Cash Used in Operating A
Slide 20: Operating Expense Detail - Constant $
Operating Expense Detail - Constant $ First Quarter 2022 2022 C$(c) 2021 Operating expenses: Salary and related service costs $ 1,794.6 $ 1,839.4 $ 1,649.2 Third-party service costs (a) 697.2 715.0 895.8 Occupancy and other costs 300.2 308.4 291.6 Charges arising from the effects of the war in Ukrai
Slide 21: Acquisition: TA Digital
Acquisition: TA Digital • March 2022 • Services will be closely aligned with OPMG's Credera. TA Digital helps marketing and technology executives transform their businesses to drive revenue growth and improve the customer experience while maximizing return on investment “We're continuing to expand o
Slide 22: OMC Marketing & Communications Services Portfolio
OMC Marketing & Communications Services Portfolio Note: For more information regarding companies within each of our disciplines, please visit www.omnicomgroup.com 22
Slide 23: Disclosures
Disclosures The preceding materials have been prepared for use in the April 19, 2022 conference call on Omnicom’s results of operations for the three months ended March 31, 2022. The call will be archived on the Internet at http:// investor.omnicomgroup.com/investor-relations/news-events-and-filings