Omnicom Group Inc. · NYSE:OMC
Omnicom — Q3 2024 Earnings Presentation
22 slides from Omnicom's earnings presentation, Oct 15, 2024
Slide 1: 2024 Third Quarter
2024 Third Quarter October 15, 2024
Slide 2: Highlights
Highlights Revenue Income • 6.5% organic revenue growth and +2.1% from • 7.0% growth in Operating Income, and 7.9% net acquisitions/dispositions in Q3 2024 growth in Adjusted EBITA in Q3 2024 with a • Led by Advertising & Media (+9.4%), 16.0% margin(i) Experiential (+35.3%), and Public Relations • 4
Slide 3: Income Statement Summary
Income Statement Summary Third Quarter Year to Date 2024 2023 2024 2023 Revenue $ 3,882.6 $ 3,578.1 $ 11,366.9 $ 10,631.3 Operating Expenses (a) 3,282.5 3,017.3 9,777.6 9,173.3 Operating Income 600.1 560.8 1,589.3 1,458.0 Net Interest Expense 40.4 38.3 108.9 85.0 Income Tax Expense(b) 150.2 136.1 38
Slide 4: Revenue Change
Revenue Change Third Quarter Year to Date $ %∆ $ %∆ Prior Period Revenue $ 3,578.1 $ 10,631.3 Foreign exchange rate impact(1) (1.2) (0.1)% (41.3) (0.4)% Acquisition revenue, net of disposition revenue(2) 74.4 2.1 % 220.4 2.1 % Organic growth(3) 231.3 6.5 % 556.5 5.2 % Current Period Revenue $ 3,882.
Slide 5: Revenue by Discipline
Revenue by Discipline Third Quarter Year to Date % % Organic % % Organic Revenue % of Rev Growth Growth(3) Revenue % of Rev Growth Growth(3) Advertising & Media $ 2,083.7 53.7 % 9.1 % 9.4 % Advertising & Media $ 6,037.3 53.1 % 7.9 % 8.1 % Precision Marketing 461.0 11.9 % 20.1 % 0.8 % Precision Marke
Slide 6: Revenue by Region
Revenue by Region Third Quarter Year to Date % Organic % Organic Revenue % of Rev % Growth Growth(3) Revenue % of Rev % Growth Growth(3) United States $ 2,039.7 52.5 % 9.1 % 6.5 % United States $ 5,999.0 52.8 % 8.4 % 5.7 % Other North America 114.3 2.9 % (0.1)% 1.5 % Other North America 344.3 3.0 %
Slide 7: Revenue by Industry Sector
Revenue by Industry Sector Third Quarter Year to Date 2024 2023 2024 2023 Pharma & Health 16% 16% 16% 16% Food and Beverage 15% 15% 15% 15% Auto 12% 12% 11% 12% Consumer Products 10% 8% 10% 8% Technology 8% 8% 8% 8% Financial Services 7% 8% 7% 8% Travel & Entertainment 7% 7% 7% 7% Retail 6% 6% 6% 6%
Slide 8: Operating Expense Detail
Operating Expense Detail Third Quarter Year to Date 2024 % of Rev 2023 % of Rev 2024 % of Rev 2023 % of Rev Revenue $ 3,882.6 $ 3,578.1 $ 11,366.9 $ 10,631.3 Operating expenses: Salary and related costs 1,846.9 47.6 % 1,756.7 49.1 % 5,531.1 48.7 % 5,306.7 49.9 % Third-party service costs(c) 784.5 20
Slide 9: Income Statement Summary - Non-GAAP Adjusted
Income Statement Summary - Non-GAAP Adjusted Third Quarter Year to Date Non- Non- Non- Non- Non- Non- Reported GAAP Reported GAAP Reported GAAP GAAP Reported GAAP GAAP 2024 Adj. 2024 2023 Adj. 2023 2024 Adjs. Adj. 2024 2023 Adjs. Adj. 2023 Revenue $ 3,882.6 $ 3,882.6 $ 3,578.1 $ 3,578.1 $ 11,366.9 $
Slide 10: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30, 2024 2023 Free Cash Flow(4) $ 1,402.1 $ 1,348.1 Primary Uses of Cash: Dividends paid to Common Shareholders 416.0 424.0 Dividends paid to Noncontrolling Interest Shareholders 64.0 47.0 Capital Expenditures 93.6 64.2 Acquisition payments, includin
Slide 11: Credit & Liquidity
Credit & Liquidity Twelve Months Ended $ Millions September 30, 2024 2023 EBITDA(5) $ 2,471.1 $ 2,312.7 Total Debt / EBITDA 2.8 x 2.4 x Net Debt(6) / EBITDA 1.4 x 1.2 x Debt Bank Loans (Due Less Than 1 Year) $ 16.9 $ 14.5 USD-denominated Senior Notes 4,750.0 4,150.0 EUR-denominated Senior Notes 1,78
Slide 12: Historical Returns
Historical Returns Return on Invested Capital (ROIC)(7) Return on Equity(8) Twelve months ended September 30, 2024 20.2 % Twelve months ended September 30, 2024 40.6 % Twelve months ended September 30, 2023 22.6 % Twelve months ended September 30, 2023 46.7 % In millions. See Definitions (7) and (8)
Slide 13: Notes
Notes Financial (a) For the nine months ended September 30, 2024, operating expenses included $57.8 million ($42.9 million after-tax) of repositioning costs, primarily related to severance, which reduced diluted net income per share- Omnicom Group Inc. by $0.22. There were no repositioning costs for
Slide 14: Appendix
Appendix 14
Slide 15: Acquisition - LeapPoint
Acquisition - LeapPoint • Closed end of September 2024 • Digital advisory firm helps enterprises improve the orchestration and performance of their marketing lifecycle "LeapPoint’s outstanding depth of expertise across the Adobe • Key strategic addition for OPMG's content Content Supply Chain, and W
Slide 16: Free Cash Flow
Free Cash Flow Nine Months Ended September 30, 2024 2023 Net Income $ 1,095.1 $ 1,015.4 Depreciation and Amortization of Intangible Assets 181.4 157.4 Share-Based Compensation 69.1 63.6 Real estate and other repositioning costs 57.8 191.5 Gain on disposition of subsidiary — (78.8) Other Items to Rec
Slide 17: Operating Expense Detail - Constant $
Operating Expense Detail - Constant $ Third Quarter Year to Date 2024 2024 C$(e) 2023 2024 2024 C$(e) 2023 Operating expenses: Salary and related costs $ 1,846.9 $ 1,845.3 $ 1,756.7 $ 5,531.1 $ 5,542.4 $ 5,306.7 Third-party service costs(c) 784.5 785.1 678.8 2,293.8 2,308.9 2,033.9 Third-party incid
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Nine Months Ended September 30, 2024 2023 Net Cash Used in Operating Activities $ (191.5) $ (379.1) Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (1,593.6) (1,727.2) Free Cash Flow $ 1,402.1 $ 1,348.1 Net Increase (Decrease) in Cash an
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2024 2023 2024 2023 2024 2023 Net Income - Omnicom Group Inc.(a)(b) $ 385.9 $ 371.9 $ 1,032.6 $ 965.7 $ 1,458.3 $ 1,395.5 Net Income Attributed to Noncontrolling Interests 24.0
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Third Quarter Year to Date 2024 2023 2024 2023 Net Income - Omnicom Group Inc.- Reported $ 385.9 $ 371.9 $ 1,032.6 $ 965.7 Net Income Attributed To Noncontrolling Interests 24.0 16.4 62.5 49.7 Income From Equity Method Investments 0.4 1.9 4.6 3.1 Income Tax Expense 150.2 136
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Third Quarter Year to Date 2024 2023 2024 2023 Net Income - Omnicom Group Inc. - Reported $ 385.9 $ 371.9 $ 1,032.6 $ 965.7 Impact on Net Income related to: Real estate and other repositioning costs — — 42.9 145.5 Gain on disposition of subsidiary — — — (55.9) Amortization o
Slide 22: Disclosures
Disclosures The preceding materials have been prepared for use in the October 15, 2024 conference call on Omnicom’s results of operations for the three and nine months ended September 30, 2024. The call will be archived on the Internet at http:// investor.omnicomgroup.com Forward-Looking Statements