Omnicom Group Inc. · NYSE:OMC
Omnicom — Q4 2007 Earnings Presentation
16 slides from Omnicom's earnings presentation, Feb 12, 2008
Slide 1: Fourth Quarter 2007 Results Investor Presentation
Exhibit 99.2 Omnicom Group FOURTH QUARTER 2007 RESULTS Investor Presentation February 12, 2008
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the February 12, 2008 conference call on Omnicom’s results of operations for the year ended December 31, 2007. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the s
Slide 3: 2007 vs. 2006 P&L Summary
2007 vs. 2006 P&L Summary Fourth Quarter Full Year 2007 2006 % 2007 2006 % Revenue $ 3,626.0 $ 3,216.2 12.7% $ 12,694.0 $ 11,376.9 11.6% Operating Profit 531.9 474.2 12.2% 1,659.1 1,483.5 11.8% % Margin 14.7% 14.7% 13.1% 13.0% Net Interest Expense 14.3 24.1 74.0 91.6 Profit Before Tax 517.6 450.1 15
Slide 4: 2007 vs. 2006 Earnings Per Share
2007 vs. 2006 Earnings Per Share (a) Fourth Quarter Full Year 2007 2006 2007 2006 Earnings per Share: Basic $ 0.97 $ 0.82 $ 2.99 $ 2.52 Diluted 0.96 0.81 2.95 2.50 Growth Rate, Diluted 18.5 % 18.0 % Weighted Average Shares (millions): Basic 323.2 338.1 326.0 342.9 Diluted 327.0 342.7 330.4 346.1 Div
Slide 5: 2007 Total Revenue Growth
2007 Total Revenue Growth Fourth Quarter Full Year $ % $ % Prior Period Revenue $ 3,216.2 $ 11,376.9 Foreign Exchange (FX) Impact (a) 161.7 5.0% 436.8 3.8% Acquisition Revenue (b) 36.2 1.1% 77.7 0.7% Organic Revenue (c) 211.9 6.6% 802.6 7.1% Current Period Revenue $ 3,626.0 12.7% $ 12,694.0 11.6% (a
Slide 6: 2007 Revenue By Discipline
2007 Revenue By Discipline Fourth Quarter Full Year PR PR 9.4% 10.0% CRM CRM 37.0% Advertising 36.6% Advertising 43.5% 43.0% Specialty Specialty 10.1% 10.4% Pie Chart (a) $ Mix % Growth $ Mix % Growth (a) Advertising 1,578.6 13.1% Advertising 5,463.7 12.0% CRM 1,342.2 13.3% #### CRM 4,645.7 14.1% PR
Slide 7: 2007 Revenue By Geography
2007 Revenue By Geography Fourth Quarter Full Year Euro Euro Markets Markets United 22.9% United States States 21.3% 51.0% UK 52.8% UK 10.1% 11.0% Other Other 16.0% 14.9% $ Mix $ Growth (a) $ Mix $ Growth (a) United States $ 1,845.9 $ 160.8 United States $ 6,704.2 $ 510.2 Organic 142.8 Organic 467.7
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) Full Year 2007 2006 Net Income $ 975.7 $ 864.0 Stock-Based Compensation Expense 68.7 71.1 Depreciation and Amortization 208.6 190.0 Other Non-Cash Items to Reconcile to Net Cash Provided by Operations 119.7 78.2 Other Changes in Working Capital 243.8 564.5 E
Slide 9: Current Credit Picture
Current Credit Picture Full Year 2007 2006 Operating Income (EBIT) (a) $ 1,659 $ 1,484 (a) $ 74.0 $ 91.6 Net Interest Expense EBIT / Net Interest 22.4 x 16.2 x Net Debt / EBIT 0.7 x 0.8 x Debt: Bank Loans (Due Less Than 1 Year) $ 12 $ 11 CP Issued Under $2.5B - 5 Year Revolver Due 6/23/11 - - Conver
Slide 10: Current Liquidity Picture
Current Liquidity Picture As of December 31, 2007 Total Amount Of Facility Outstanding Available Committed Facilities 5 Year Revolver (a) $ 2,500 $ - $ 2,500 Other Committed Credit Facilities 12 12 - Total Committed Facilities 2,512 12 2,500 (b) Uncommitted Facilities (b) 443 - - Total Credit Facili
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures Full Year 2007 New Subsidiary Acquisitions (a) $ 160 Affiliates to Subsidiaries (b) 3 Affiliates (c) - Existing Subsidiaries (d) 56 Earn-outs (e) 159 Total Acquisition Expenditures $ 378 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 December 31, 2007, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2008 2009 2010 2011 Thereafter Total $ 173 $ 88 $ 90 $ 26 $ 1 $ 378 (a) The ultimate p
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
Slide 15: Fourth Quarter Acquisitions: Brandcom
Fourth Quarter Acquisitions Brandcom Brandcom is a full service advertising agency offering strategic, creative and point of sale solutions to its clients business challenges. Brandcom will work with the DDB network. Brandcom is based in Dubai, United Arab Emirates. 14
Slide 16: Fourth Quarter Acquisitions: Waters Widgren
Fourth Quarter Acquisitions Waters Widgren WatersWidgren is a full service agency that was formed in 2005. The agency was the most recognized Swedish agency at Cannes in 2007. Located in Stockholm, Sweden, WatersWidgren will merge with TBWA\Sweden to form WatersWidgren\TBWA. 15