Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2025 Earnings Presentation
23 slides from Omnicom's earnings presentation, Apr 15, 2025
Slide 1: 2025 First Quarter
2025 First Quarter April 15, 2025
Slide 2: Highlights
2 Highlights Revenue Income • Q1 2025 organic revenue growth of +3.4% • Q1 operating income, excluding acquisition costs, • Led by strong growth in Media & Advertising and $486.4 million. Adj. EBITA $508.2 million, up Precision Marketing (together 68% of revenue 1.6% (i) growing +7.0% organic) • Q1
Slide 3: Income Statement Summary
3 Income Statement Summary First Quarter 2025 2024 Revenue $ 3,690.4 $ 3,630.5 Operating Expenses (a) 3,237.8 3,151.6 Operating Income 452.6 478.9 Net Interest Expense 29.4 26.8 Income Tax Expense(b) 120.7 116.0 Income from Equity Method Investments 0.9 0.9 Net Income Attributed to Noncontrolling In
Slide 4: Revenue Change
4 Revenue Change First Quarter $ %∆ Prior Period Revenue $ 3,630.5 Foreign exchange rate impact(1) (59.2) (1.6)% Acquisition revenue, net of disposition revenue(2) (2.8) (0.1)% Organic growth(3) 121.9 3.4 % Current Period Revenue $ 3,690.4 1.6 % In millions. See Definitions (1) through (3) on page 1
Slide 5: Revenue by Discipline
5 Revenue by Discipline First Quarter % % Organic Revenue % of Rev Growth Growth(3) Media & Advertising $ 2,048.2 55.5 % 4.8 % 7.2 % Precision Marketing 450.3 12.2 % 5.9 % 5.8 % Public Relations 362.7 9.8 % (5.4)% (4.5)% Healthcare 305.7 8.3 % (3.6)% (3.2)% Branding & Retail Commerce 159.5 4.3 % (14
Slide 6: Revenue by Region
6 Revenue by Region First Quarter % Organic Revenue % of Rev % Growth Growth(3) United States $ 2,007.0 54.4 % 4.2 % 4.6 % Other North America 104.5 2.8 % (9.1)% (3.6)% United Kingdom 395.9 10.8 % (1.8)% (0.7)% Euro Markets & Other Europe 599.1 16.2 % (0.6)% 1.7 % Asia Pacific 416.7 11.3 % 2.2 % 6.0
Slide 7: Revenue by Industry Sector
7 Revenue by Industry Sector First Quarter 2025 2024 Pharma & Health 15% 16% Food & Beverage 15% 16% Auto 13% 11% Consumer Products 9% 9% Financial Services 8% 7% Travel & Entertainment 8% 7% Technology 7% 7% Retail 6% 6% Government 4% 4% Telecommunications 3% 4% Services 3% 3% Oil, Gas & Utilities
Slide 8: Operating Expense Detail
8 Operating Expense Detail First Quarter 2025 % of Rev 2024 % of Rev Revenue $ 3,690.4 $ 3,630.5 Operating expenses: Salary and related costs 1,780.5 48.2 % 1,847.3 50.9 % Third-party service costs(c) 796.8 21.6 % 698.2 19.2 % Third-party incidental costs(d) 169.0 4.6 % 147.1 4.1 % Total salary and
Slide 9: Income Statement Summary - Non-GAAP Adjusted
Income Statement Summary - Non-GAAP Adjusted 9 First Quarter Non- Non- Non- Non- Reported GAAP GAAP Reported GAAP GAAP 2025 Adjs. Adj. 2025 2024 Adjs. Adj. 2024 Revenue $3,690.4 $— $3,690.4 $3,630.5 $— $3,630.5 Operating Expenses: Operating Expenses(a) 3,237.8 (33.8) 3,204.0 3,151.6 — 3,151.6 Operat
Slide 10: Cash Flow Performance
10 Cash Flow Performance Three Months Ended March 31, 2025 2024 Free Cash Flow(4) $ 386.5 $ 415.1 Primary Uses of Cash: Dividends paid to Common Shareholders 137.7 138.8 Dividends paid to Noncontrolling Interest Shareholders 13.0 13.3 Capital Expenditures 29.5 23.1 Acquisition payments, including pa
Slide 11: Credit & Liquidity
11 Credit & Liquidity $ Millions Twelve Months Ended March 31, 2025 2024 EBITDA(5) $ 2,489.4 $ 2,453.9 Total Debt / EBITDA 2.5 x 2.6 x Net Debt(6) / EBITDA 1.1 x 1.3 x Debt Bank Loans (Due Less Than 1 Year) $ 19.1 $ 11.2 USD-denominated Senior Notes 4,000.0 4,150.0 EUR-denominated Senior Notes 1,732
Slide 12: Historical Returns
12 Historical Returns Return on Invested Capital (ROIC)(7) Return on Equity(8) Twelve months ended March 31, 2025 19.9 % Twelve months ended March 31, 2025 36.5 % Twelve months ended March 31, 2024 22.3 % Twelve months ended March 31, 2024 44.3 % In millions. See Definitions (7) and (8) on page 13.
Slide 13: Notes
Notes 13 Financial Notes (a) Included in selling, general and administrative expenses for the three months ended March 31, 2025 are acquisition costs of $33.8 million ($32.7 million after-tax) related to the proposed merger with IPG, which reduced diluted net income per share - Omnicom Group Inc. by
Slide 14: Appendix
Appendix Omnico
Slide 15: Free Cash Flow
15 Free Cash Flow Three Months Ended March 31, 2025 2024 Net Income $ 303.4 $ 337.0 Depreciation and Amortization of Intangible Assets 59.0 59.6 Share-Based Compensation 20.8 22.1 Other Items to Reconcile to Net Cash Used in Operating Activities, net 3.3 (3.6) Free Cash Flow(9) $ 386.5 $ 415.1 In mi
Slide 16: Operating Expense Detail - Constant $
16 Operating Expense Detail - Constant $ First Quarter 2025 2025 C$(e) 2024 Operating expenses: Salary and related costs $ 1,780.5 $ 1,810.4 $ 1,847.3 Third-party service costs(c) 796.8 809.2 698.2 Third-party incidental costs(d) 169.0 171.4 147.1 Total salary and service costs 2,746.3 2,791.0 2,692
Slide 17: Non-GAAP Reconciliations
17 Non-GAAP Reconciliations Three Months Ended March 31, 2025 2024 Net Cash Provided by Operating Activities $ (786.8) $ (618.5) Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (1,173.3) (1,033.6) Free Cash Flow $ 386.5 $ 415.1 Net Increase (Decrease) in Cash an
Slide 18: Non-GAAP Reconciliations
18 Non-GAAP Reconciliations Three Months Ended March 31, 2025 2024 Net Income - Omnicom Group Inc.(a)(b) $ 287.7 $ 318.6 Net Income Attributed to Noncontrolling Interests 15.7 18.4 Income From Equity Method Investments 0.9 0.9 Income Tax Expense 120.7 116.0 Income Before Income Taxes and Income From
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 19 Three Months Ended March 31, 2025 2024 Net Income - Omnicom Group Inc.- Reported $ 287.7 $ 318.6 Net Income Attributed To Noncontrolling Interests 15.7 18.4 Income From Equity Method Investments 0.9 0.9 Income Tax Expense 120.7 116.0 Income Before Income Taxes and Income
Slide 20: Non-GAAP Reconciliations
20 Non-GAAP Reconciliations First Quarter 2025 2024 Net Income - Omnicom Group Inc. - Reported $ 287.7 $ 318.6 Impact on Net Income related to: Acquisition related costs 32.7 — Amortization of acquired intangible assets and internally developed 16.1 15.9 strategic platform assets Non-GAAP Net Income
Slide 21: Revenue by Discipline - 2024 & 2023 Full Year
21 Revenue by Discipline - 2024 & 2023 Full Year 2024 Full Year 2023 Full Year % Organic % Organic $ Mix % Growth Growth(a) $ Mix % Growth Growth(a) Media & Advertising $ 8,656.1 6.8 % 7.3 % $ 8,101.8 5.9 % 6.3 % Precision Marketing 1,776.3 25.6 % 5.0 % 1,414.7 3.6 % 3.2 % Public Relations 1,640.8 6
Slide 22: Revenue by Discipline - 2024 Quarterly
22 Revenue by Discipline - 2024 Quarterly Q1 2024 Q2 2024 Q3 2024 Q4 2024 % Organic % Organic % Organic % Organic $ Mix Growth(a) $ Mix Growth(a) $ Mix Growth(a) $ Mix Growth(a) Media & Advertising $ 1,954.2 $ 2,101.0 $ 2,129.0 $ 2,471.9 6.5 % 7.4 % 8.8 % 6.7 % Precision Marketing 425.4 427.1 450.6
Slide 23: Disclosures
Disclosures 23 The preceding materials have been prepared for use in the April 15, 2025 conference call on Omnicom’s results of operations for the three months ended March 31, 2025. The call will be archived on the internet at http:// investor.omnicomgroup.com Forward-Looking Statements Certain stat