Omnicom Group Inc. · NYSE:OMC
Omnicom — Q3 2007 Earnings Presentation
19 slides from Omnicom's earnings presentation, Oct 23, 2007
Slide 1: Omnicom Group Third Quarter 2007 Results
Omnicom Group THIRD QUARTER 2007 RESULTS Investor Presentation October 23, 2007
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the October 23, 2007 conference call on Omnicom’s results of operations for the quarter ended September 30, 2007. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of th
Slide 3: 2007 vs. 2006 P&L Summary
2007 vs. 2006 P&L Summary Third Quarter Year to Date 2007 2006 % 2007 2006 % Revenue $ 3,101.4 $ 2,774.3 11.8% $ 9,068.1 $ 8,160.7 11.1% Operating Profit 350.2 307.4 13.9% 1,127.3 1,009.3 11.7% % Margin 11.3% 11.1% 12.4% 12.4% Net Interest Expense 19.3 26.7 59.8 67.4 Profit Before Tax 330.9 280.7 17
Slide 4: 2007 vs. 2006 Earnings Per Share
2007 vs. 2006 Earnings Per Share (a) Third Quarter Year to Date 2007 2006 2007 2006 Earnings per Share: Basic $ 0.62 $ 0.52 $ 2.02 $ 1.70 Diluted 0.62 0.52 2.00 1.69 Growth Rate, Diluted 19.2% 18.3 % Weighted Average Shares (millions): Basic 324.0 338.8 327.0 344.4 Diluted 328.2 341.9 331.8 347.5 Di
Slide 5: 2007 Total Revenue Growth
2007 Total Revenue Growth Third Quarter Year to Date $ % $ % Prior Period Revenue $ 2,774.3 $ 8,160.7 Foreign Exchange (FX) Impact (a) 99.1 3.6% 275.1 3.4% Acquisition Revenue (b) 33.4 1.2% 41.6 0.5% Organic Revenue (c) 194.6 7.0% 590.7 7.2% Current Period Revenue $ 3,101.4 11.8% $ 9,068.1 11.1% (a)
Slide 6: 2007 Revenue By Discipline
2007 Revenue By Discipline Third Quarter Year to Date PR PR 10.2% 10.3% CRM CRM 37.6% Advertising 36.4% Advertising 41.7% 42.9% Specialty Specialty 10.5% 10.4% Pie Chart $ Mix % Growth (a) $ Mix % Growth (a) Advertising 1,292.8 12.1% #### Advertising 3,885.1 11.5% CRM 1,165.8 14.2% #### CRM 3,303.5
Slide 7: 2007 Revenue By Geography
2007 Revenue By Geography Third Quarter Year to Date Euro Euro Markets Markets United 20.5% United States States 20.7% 53.4% UK 53.6% UK 11.4% 11.3% Other Other 14.7% 14.4% $ Mix $ Growth(a) $ Mix $ Growth(a) United States $ 1,654.9 $ 114.4 United States $ 4,858.4 $ 349.5 Organic 92.8 Organic 324.9
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 9 Months Ended September 30, 2007 2006 Net Income $ 661.9 $ 586.8 Stock-Based Compensation Expense 53.4 52.7 Depreciation and Amortization 150.8 137.5 Other Non-Cash Items to Reconcile to Net Cash Provided by Operations 70.6 54.2 Other Changes in Working Cap
Slide 9: Current Credit Picture
Current Credit Picture LTM ended September 30, 2007 2006 Operating Income (EBIT) (a) $ 1,601 $ 1,435 Net Interest Expense (a) $ 83.9 $ 84.0 EBIT / Net Interest 19.1 x 17.1 x Net Debt / EBIT 1.5 x 1.5 x Debt: Bank Loans (Due Less Than 1 Year) $ 18 $ 12 CP Issued Under $2.5B - 5 Year Revolver Due 6/23
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of September 30, 2007 Of Facility Outstanding Available Committed Facilities 5 Year Revolver (a) $ 2,500 $ - $ 2,500 Other Committed Credit Facilities 18 18 - Total Committed Facilities 2,518 18 2,500 (b) Uncommitted Facilities (b) 674 - - Total Credit Facil
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures 9 Months YTD 2007 New Subsidiary Acquisitions (a) $ 154 Affiliates to Subsidiaries (b) 1 Affiliates (c) - Existing Subsidiaries (d) 42 Earn-outs (e) 132 Total Acquisition Expenditures $ 329 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisit
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of September 30, 2007, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2007 2008 2009 2010 Thereafter Total $ 27 $ 130 $ 81 $ 101 $ 35 $ 374 (a) The ultimat
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: Third Quarter Acquisitions: Consultech
Third Quarter Acquisitions Consultech Consultech is a healthcare consulting and marketing company specializing in market research, strategic planning and consultancy and marketing communications. Consultech is based in Beijing, China and is part of the Diversified Agency Services (DAS) Group. 14
Slide 16: Third Quarter Acquisitions: Sil Ad
Third Quarter Acquisitions Sil Ad Sil Ad is a full service advertising agency which was founded 16 years ago and currently services many leading Malaysian companies. Over the years the agency has built a strong creative reputation as evidenced by numerous industry related awards. Sil Ad is based in
Slide 17: Third Quarter Acquisitions: Pointer Group
Third Quarter Acquisitions Pointer Group The Pointer Group specializes in retail activation and promotional marketing. Its services include trade marketing, channel marketing, field marketing, events, point-of-sale, store design, sales promotion and sales related public relations. The Pointer Group
Slide 18: Third Quarter Acquisitions: RTS Rieger Team
Third Quarter Acquisitions RTS Rieger Team RTS Rieger Team is a leading full-service agency providing business to business solutions, including advertising, brand consulting, sales promotion, direct marketing, public relations and e-business solutions. The company is part of TBWA Germany and is loca
Slide 19: Third Quarter Acquisitions: Signature Graphics
Third Quarter Acquisitions Signature Graphics Signature Graphics is a leading producer of high quality, customized vehicle graphic wraps and large format branding materials and services in North America. The company provides a full range of customized vehicle graphics and marketing and advertising s