Omnicom Group Inc. · NYSE:OMC
Omnicom — Q2 2007 Earnings Presentation
16 slides from Omnicom's earnings presentation, Jul 24, 2007
Slide 1: Omnicom Group Second Quarter 2007 Results Investor Presentation
Exhibit 99.2 Omnicom Group SECOND QUARTER 2007 RESULTS Investor Presentation July 24, 2007
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the July 24, 2007 conference call on Omnicom’s results of operations for the quarter ended June 30, 2007. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the statem
Slide 3: 2007 vs. 2006 P&L Summary
2007 vs. 2006 P&L Summary Second Quarter Year to Date 2007 2006 % 2007 2006 % Revenue $ 3,126.1 $ 2,823.4 10.7% $ 5,966.7 $ 5,386.3 10.8% Operating Income 461.6 417.4 10.6% 777.1 701.9 10.7% % Margin 14.8% 14.8% 13.0% 13.0% Net Interest Expense 22.2 25.5 40.5 40.7 Profit Before Tax 439.4 391.9 12.1%
Slide 4: 2007 vs. 2006 Earnings Per Share
2007 vs. 2006 Earnings Per Share (a) Second Quarter Year to Date 2007 2006 2007 2006 Earnings per Share: Basic $ 0.85% $ 0.72 $ 1.40% $ 1.18 Diluted 0.84% 0.71 1.38% 1.17 Growth Rate, Diluted 18.3% 17.9% Weighted Average Shares (millions): Basic 325.8% 340.5 328.4% 347.3 Diluted 330.8% 344.1 333.5%
Slide 5: 2007 Total Revenue Growth
2007 Total Revenue Growth Second Quarter Year to Date $ % $ % Prior Period Revenue $ 2,823.4 $ 5,386.3 Foreign Exchange (FX) Impact (a) 88.7 3.1% 176.0 3.3% Acquisition Revenue (b) 6.2 0.2% 8.3 0.1% Organic Revenue (c) 207.8 7.4% 396.1 7.4% Current Period Revenue $ 3,126.1 10.7% $ 5,966.7 10.8% (a)
Slide 6: 2007 Revenue By Discipline
2007 Revenue By Discipline Second Quarter Year to Date PR PR 10.3% 10.3% CRM CRM 35.9% Advertising 35.8% Advertising 43.7% 43.5% Specialty Specialty 10.1% 10.4% Pie Chart (a) (a) $ Mix % Growth $ Mix % Growth Advertising 1,366.5 11.8% #### Advertising 2,592.3 11.3% CRM 1,121.0 14.8% #### CRM 2,137.7
Slide 7: 2007 Revenue By Geography
2007 Revenue By Geography Second Quarter Year to Date Euro Euro Markets Markets United 21.4% United States States 20.8% 53.1% UK 53.7% UK 11.1% 11.3% Other Other 14.4% 14.2% $ Mix $ Growth(a) $ Mix $ Growth(a) United States $ 1,659.7 $ 124.3 United States $ 3,203.5 $ 235.1 Organic 121.7 Organic 232.
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 6 Months Ended June 30, 2007 2006 Net Income $ 459.7 $ 409.7 Stock-Based Compensation Expense 36.2 33.9 Depreciation and Amortization 98.3 90.3 Other Non-Cash Items to Reconcile to Net Cash Provided by Operations 43.4 37.4 Other Changes in Working Capital (6
Slide 9: Current Credit Picture
Current Credit Picture LTM ended June 30, 2007 2006 Operating Income (EBIT)(a) $ 1,559 $ 1,402 Net Interest Expense(a) $ 91.4 $ 73.5 EBIT / Net Interest 17.1 x 19.1 x Net Debt / EBIT 1.4 x 1.5 x Debt: Bank Loans (Due Less Than 1 Year) $ 11 $ 17 CP Issued Under $2.5B - 5 Year Revolver Due 6/23/11 - -
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of June 30, 2007 Of Facility Outstanding Available Committed Facilities (a) 5 Year Revolver $ 2,500 $ - $ 2,500 Other Committed Credit Facilities 11 11 - Total Committed Facilities 2,511 11 2,500 (b) (b) Uncommitted Facilities 372 - - Total Credit Facilities
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures 6 Months YTD 2007 New Subsidiary Acquisitions (a) $ 17 Affiliates to Subsidiaries (b) - Affiliates (c) - Existing Subsidiaries (d) 32 Earn-outs (e) 97 Total Acquisition Expenditures $ 146 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisitio
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of June 30, 2007, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2007 2008 2009 2010 Thereafter Total $ 62 $ 125 $ 73 $ 97 $ 34 $ 391 (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
Slide 15: Second Quarter Acquisitions: ECI
Second Quarter Acquisitions ECI ECI is an award winning direct response agency specializing in one-to-one marketing for highly regulated industries, such as financial services, healthcare, telecommunications and utilities. In addition to its full-service agency capabilities, ECI offers comprehensive
Slide 16: Second Quarter Acquisitions: ASA Events
Second Quarter Acquisitions ASA Events ASA Events is a youth lifestyle marketing and entertainment company that connects brands to consumers through professional and amateur sports events. ASA Events’ services include event design and production, mobile marketing, action sports consulting and manage