Slide 1: Third Quarter 2017 Results
Third Quarter 2017 Results October 17, 2017 Investor Presentation
Slide 2: 2017 vs. 2016 P&L Summary
2017 vs. 2016 P&L Summary Third Quarter Third Quarter 2017 2016 Revenue $ 3,719.5 $ 3,791.1 Operating Expenses (a) 3,255.3 3,338.0 Operating Profit 464.2 453.1 Net Interest Expense 46.4 42.0 (b) Income Tax Expense (b) 132.0 134.3 (b) Tax Rate % (b) 31.6% 32.7% Income from Equity Method Investments 1
Slide 3: 2017 vs. 2016 Earnings per Share – Diluted
2017 vs. 2016 Earnings per Share – Diluted Third Quarter Third Quarter 2017 2016 Net Income - Omnicom Group Inc. $ 263.6 $ 253.8 Net Income allocated to participating securities (0.3) (1.2) Net Income available for common shares (a) $ 263.3 $ 252.6 Diluted Shares (millions) 232.7 238.7 Earnings per
Slide 4: 2017 vs. 2016 P&L Summary (Nine Months)
2017 vs. 2016 P&L Summary Year to Date Year to Date 2017 2016 Revenue $ 11,097.1 $ 11,175.1 Operating Expenses (a) 9,657.5 9,768.1 Operating Profit 1,439.6 1,407.0 Net Interest Expense 131.2 127.0 (b) Income Tax Expense (b) 406.7 417.7 (b) Tax Rate % (b) 31.1% 32.6% Income from Equity Method Investm
Slide 5: 2017 vs. 2016 Earnings per Share – Diluted (Nine Months)
2017 vs. 2016 Earnings per Share – Diluted Year to Date Year to Date 2017 2016 Net Income - Omnicom Group Inc. $ 834.0 $ 798.3 Net Income allocated to participating securities (1.4) (4.8) Net Income available for common shares (a) $ 832.6 $ 793.5 Diluted Shares (millions) 234.4 239.6 Earnings per Sh
Slide 6: Total Revenue Change
2017 Total Revenue Change Third Quarter Year to Date $ %∆ $ %∆ Prior Period Revenue $ 3,791.1 $ 11,175.1 Foreign exchange rate impact (a) 38.9 1.0% (59.2) -0.5% Acquisition revenue, net of disposition (216.4) -5.7% (412.8) -3.7% revenue (b) Organic growth (c) 105.9 2.8% 394.0 3.5% Current Period Rev
Slide 7: Revenue by Region
2017 Revenue by Region Third Quarter Year to Date Latin Africa Latin Africa America Mideast America Mideast 3.2% 1.8% 3.1% 2.0% Asia Asia Pacific Pacific 11.1% 10.7% Euro Euro Markets & Markets & Other Other Europe North North Europe America 17.7% America 17.1% 57.9% 56.6% UK UK 9.6% 9.2% October 17
Slide 8: Revenue by Region
2017 Revenue by Region Third Quarter Year to Date % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) North America $ 2,107.5 -6.5% 2.1% North America $ 6,422.5 -4.2% 1.1% UK 357.6 2.8% 3.8% UK 1,017.2 -3.0% 7.1% Euro & Other Europe 660.1 11.7% 7.8% Euro & Other Europe 1,900.6 7.
Slide 9: Revenue by Discipline
2017 Revenue by Discipline Third Quarter Year to Date Specialty Specialty 7.5% 7.6% PR PR 9.3% 9.2% Advertising Advertising 52.3% 53.0% CRM CRM 30.9% 30.2% % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) Advertising $ 1,946.1 -1.4% 4.7% Advertising $ 5,884.7 0.7% 5.0% CRM 1,1
Slide 10: Revenue by Industry
Revenue by Industry Year to Date – 2017 Year to Date – 2016 T&E Auto T&E Auto Telcom 6% 10% 7% 8% Telcom 5% 5% Consumer Consumer Products Products Tech 9% Tech 10% 9% 9% Financial Financial Services Services Retail 7% Retail 7% 6% 6% Food & Food & Pharma & Pharma & Beverage Health Beverage Health 13
Slide 11: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30 2017 2016 Net Income $ 904.4 $ 866.3 Depreciation and Amortization Expense 212.4 220.3 Share-Based Compensation Expense 60.6 69.8 Other Items to Reconcile to Net Cash Used in Operating (6.1) (22.0) (b) Activities, net Free Cash Flow (a) $ 1,171.3
Slide 12: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30 2017 2016 Free Cash Flow (a) $ 1,171.3 $ 1,134.4 (b) Primary Uses of Cash: Dividends paid to Common Shareholders 387.9 374.2 Dividends paid to Noncontrolling Interest Shareholders 87.1 71.1 Capital Expenditures 108.3 100.5 Acquisition of Businesse
Slide 13: Current Credit Picture
Current Credit Picture Twelve Months Ended September 30 2017 2016 EBITDA (a) $ 2,326.5 $ 2,275.1 Gross Interest Expense 221.3 204.7 EBITDA / Gross Interest Expense 10.5 x 11.1 x Total Debt / EBITDA 2.1 x 2.2 x Net Debt (b) / EBITDA 1.3 x 1.3 x Debt Bank Loans (Due Less Than 1 Year) $ 39 $ 25 CP & Bo
Slide 14: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve months ended September 30, 2017 20.2% Twelve months ended September 30, 2016 19.4% Return on Equity (b): Twelve months ended September 30, 2017 48.9% Twelve months ended September 30, 2016 47.1% (a) Return on Invested Capital is After
Slide 15: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases From 2007 through September 30, 2017, Omnicom distributed 106% of Net Income to shareholders through Dividends and Share Repurchases. 106% $12.0 106% $10.7 107% $9.9 $10.0 107% $8.7 3.6 $8.0 102% $7.6 3.2 $ In Billions 105% $6
Slide 16: Supplemental Financial Information
Supplemental Financial Information October 17, 2017 15
Slide 17: Omnicom Debt Structure
Omnicom Debt Structure Bank Loans $39 2019 Senior Notes $500 2026 Senior Notes $1,400 2020 Senior Notes $1,000 2024 Senior Notes 2022 Senior $750 Notes $1,250 The above chart sets forth Omnicom’s debt outstanding at September 30, 2017. The amounts reflected above for the 2019, 2020, 2022, 2024 and 2
Slide 18: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2026 Senior 2022 Notes $1,400 Senior Notes $1,200 2020 Senior Notes $1,000 2024 Senior $800 Notes 2019 $600 Senior Notes $400 $200 Other Borrowings $0 7 8 8 9 9 0 0 1 1 2 2 3 3 4 4 5 5 6 6 -1 -1 -1 -1 -1 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 ec n ec n ec n ec n ec n
Slide 19: Acquisition Related Expenditures
2017 Acquisition Related Expenditures Year to Date Acquisition of Businesses and Affiliates (a) $ 27.3 Acquisition of Additional Noncontrolling Interests (b) 10.2 Contingent Purchase Price Payments (c) 107.7 Total Acquisition Expenditures (d) $ 145.2 (a) Includes acquisitions of a majority interest
Slide 20: Condensed Cash Flow
Condensed Cash Flow Nine Months Ended September 30 2017 2016 Net Income $ 904.4 $ 866.3 Share-Based Compensation 60.6 69.8 Depreciation and Amortization of Intangible Assets 212.4 220.3 (a) Other Items to Reconcile to Net Cash Used in Operating Activities, net (6.1) (22.0) Changes in Operating Capit
Slide 21: 2017 vs. 2016 Non-GAAP Financial Measures – EBITA
2017 vs. 2016 Non-GAAP Financial Measures – EBITA Third Quarter Year to Date 2017 2016 2017 2016 Revenue $ 3,719.5 $ 3,791.1 $ 11,097.1 $ 11,175.1 Operating expenses (a) 3,255.3 3,338.0 9,657.5 9,768.1 Operating Profit 464.2 453.1 1,439.6 1,407.0 Operating Profit Margin % 12.5% 12.0% 13.0% 12.6% Add
Slide 22: Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA
Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA Three Months Ended Nine Months Ended Twelve Months Ended September 30 September 30 September 30 2017 2016 2017 2016 2017 2016 Net Income - Omnicom Group Inc. $ 263.6 $ 253.8 $ 834.0 $ 798.3 $ 1,184.3 $ 1,129.9 Net Income Attributed to
Slide 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Nine Months Ended September 30 2017 2016 (a) Net Cash (Used in)/Provided by Operating Activities $ (156.0) $ 335.7 Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (1,327.3) (798.7) (a) Free Cash Flow $ 1,171.3 $ 1,13
Slide 24: Supplemental Information
Supplemental Information Third Quarter Year to Date % of % of % of % of 2017 Rev 2016 Rev 2017 Rev 2016 Rev Revenue $ 3,719.5 $ 3,791.1 $ 11,097.1 $ 11,175.1 Operating expenses: Salary and service costs 2,770.5 74.5 % 2,851.6 75.2 % 8,200.8 73.9 % 8,298.9 74.3 % Occupancy and other expenses 316.7 8.
Slide 25: Third Quarter Acquisition
Third Quarter Acquisition Perceptive is a leading customer intelligence agency within the Australasia markets, providing technology- based research and insight for its clients. Agency services include quantitative and qualitative research, transnational and behavioral data analytics, software develo
Slide 26: Third Quarter Acquisition
Third Quarter Acquisition Established in 2009 with a focus on Search Engine Optimization and Content Marketing & Outreach, Verve Search is a market leader providing multi-lingual SEO strategy, executing global SEO campaigns, and creating high-value content for clients. Verve has been recognized as “
Slide 27: Disclosure
Disclosure The preceding materials have been prepared for use in the October 17, 2017 conference call on Omnicom’s results of operations for the period ended September 30, 2017. The call will be archived on the Internet at http://investor.omnicomgroup.com/investor-relations/news-events-and-filings/.