Omnicom Group Inc. · NYSE:OMC
Omnicom — Q2 2002 Earnings Presentation
17 slides from Omnicom's earnings presentation, Aug 6, 2002
Slide 1: Second Quarter 2002 Investor Presentation
OmnicomGroup Second Quarter 2002 Investor Presentation August 6, 2002 The following materials have been prepared for use in the August 6, 2002 conference call on Omnicom’s results of operations for the second quarter of 2002. The call will be archived on the internet at http://www.omnicomgroup.com/f
Slide 2: Second Quarter 2002 P&L and Earnings Per Share
Q2 YTD 2002 2001 % Change 2002 2001 % Change Revenue $1,916.6 $1,746.8 9.7% $3,649.0 $3,347.9 9.0% Operating Income 330.5 314.2 5.2% 559.3 528.2 5.9% % Margin 17.2% 18.0% 15.3% 15.8% Net Interest Expense 5.9 19.4 -69.6% 17.3 39.7 -56.4% Profit Before Tax 324.5 294.8 10.1% 542.1 488.4 11.0% % Margin
Slide 3: Total Revenue Growth and Revenue By Discipline
$ % $ % Prior Period Revenue $1,746.8 $3,347.9 Foreign Exchange Impact(a) 1.3 0.1% (16.2) -0.5% Acquisition Revenue(b) 142.8 8.2% 233.6 7.0% Organic Revenue(c) 25.7 1.5% 83.7 2.5% Current Period Revenue $1,916.6 9.7% $3,649.0 9.0% (a) To calculate the FX impact, we first convert the current period’s
Slide 4: Revenue By Geography
Note: “% growth” is the year-over-year growth from the prior period. OmnicomGroup 5 Second Quarter 2002 Revenue By Geography Domestic vs. International (Q2) $ Mix $ Growth United States $1,117.5 $192.2 Organic 69.4 Acquisition 122.8 International $ 799.1 (22.3) Organic (43.7) Acquisition 20.1 FX $1.
Slide 5: Net New Business Wins and Current Credit Picture
$ Mix % Growth United States $ 2,139.6 17.4% United Kingdom 378.2 -4.9% Euro Markets 680.2 3.0% Other $ 451.0 -3.7% OmnicomGroup 6 Net New Business Wins Notable Account Activity WINS: LOSSES: Ace Hardware, Charles Schwab, Charles Schwab, France Loto, Haagen-Dazs, Childrens Miracle Network, Home Depo
Slide 6: Current Liquidity Picture
Debt: Bank Loans (Due Less Than 1 Year) $103 $65 $183 $142 $176 $121 $500 Million Revolver Due 6/30/03 — 150 67 163 150 117 $1.6 Billion 364 Day Facility (b) 621 695 628 746 576 753 5.20% Euro Notes Due 6/24/05 151 129 140 133 137 137 2 1/4% Convertible Debentures — 230 — 230 — 230 $850 Million Conv
Slide 7: Return on Invested Capital
Note: Prior year amounts not adjusted here to reflect acquisitions accounted for as poolings of interest. 1994 excludes a $28.0 million after-tax charge for the cumulative effect of an accounting change related to postemployment benefits. 2000 excludes a $63.8 million after-tax gain from the sale of
Slide 8: Acquisitions Summary
Acquisitions Summary 12 Acquisition Related Expenditures 6 Months YTD New Subsidiary Acquisitions (a) $ 75.1 Affiliates to Subsidiaries (b) 5.5 Affiliates (c) 2.8 Existing Subsidiaries (d) 66.7 Earn-outs (e) 162.0 Total Acquisition Expenditures $312.1 Note: See appendix for subsidiary acquisition pr
Slide 9: Potential Put Obligations
(a) The ultimate payments when made will vary as they are dependent on future events. (b) Estimated remaining obligations as of June 30, 2002. OmnicomGroup 14 Potential Put Obligations • In conjunction with certain transactions Omnicom has agreed to acquire (at the sellers’option) additional equity
Slide 10: Acquisitions: Aaron Walton, Allyn & Company
Aaron Walton Entertainment, offers an array of services that have gained the company a reputation as a leader in the field of Entertainment Marketing. AWE has created key alliances between the businesses and the entertainment industry on some of the leading consumer marketing initiatives in the last
Slide 11: Acquisitions: Bass and Howes, Changing Our World
OmnicomGroup Acquisitions 19 Bass and Howes, Inc. Bass & Howes is a leading public policy and public affairs consulting firm with offices in Washington, D.C. and New York City. The Company’s clients include nonprofit organizations and associations, foundations, and corporations. Founded in 1986, Bas
Slide 12: Acquisitions: Consultores de Publicidade, Design Forum
Consultores de Publicidade Consultores de Publicidade (CPP), is a Portuguese print brokering company acquired by the Guerreiro DDB Group in Portugal. CPP is dedicated to delivering superior quality results to its clients in the areas of design, image warehousing, and pre-press production. OmnicomGro
Slide 13: Acquisitions: Dieste Harmel, FitzGerald Communications
Dieste Harmel & Partners was honored as the first Ad Age Multicultural Agency of the Year, and as the Adweek Agency of the Year for the Southwest. They are the first Hispanic Agency to win a Lion at Cannes, the Grand Award at the NY Festivals, the ARF David Ogilvy Research Award, the OAAA Media Plan
Slide 14: Acquisitions: National In-Store, Noesis
National In-Store NIS, founded in 1994, provides product merchandising, sales training, event marketing, in-store advertising/marketing, product demos, retail data collection and warehousing/logistics. NIS services over one million retail store locations per year deploying store specific objectives
Slide 15: Acquisitions: The Peter Group, Synergi Rf
The Peter Group (TPG) TPG, Inc, is a leading direct response marketing and advertising agency headquartered in Philadelphia, PA, with branch offices in Wilmington, DE, Los Angeles, CA, and Providence, RI. It operates through its subsidiaries, The Peter Group, Topak Marketing and AI Advertising. The
Slide 16: Acquisitions: TBWA\HEIGL, Tequila\BTL, La Mine
TBWA\HEIGL Heigl + Meyer, founded in Munich in 1991, is a leading public relations firm in the Bavarian region. Following the acquisition, the company was renamed TBWA\HEIGL. OmnicomGroup Acquisitions 31 Tequila\BTL Group BTL Group, founded in Poznan, Poland in 1997, is one of the largest marketing
Slide 17: Acquisitions: Top C
Top C Top C, a Czech Republic based company, is a leader in designing and implementing training programs for its clients. Top C now operates as part of the Interscreen Group of companies. OmnicomGroup Acquisitions 34