Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2021 Earnings Presentation
22 slides from Omnicom's earnings presentation, Apr 20, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results April 20, 2021 Investor Presentation
Slide 2: 2021 vs. 2020 P&L Summary
2021 vs. 2020 P&L Summary First Quarter First Quarter 2021 2020 Revenue $ 3,426.9 $ 3,406.9 Operating Expenses (a) 2,961.5 2,986.7 Operating Profit 465.4 420.2 Net Interest Expense 47.5 45.8 Income Tax Expense 111.9 97.4 Tax Rate % 26.8 % 26.0 % Income (Loss) From Equity Method Investments — (5.3) N
Slide 3: Operating Expense Detail
Operating Expense Detail First Quarter 2021 % of Rev 2020 % of Rev Revenue $ 3,426.9 $ 3,406.9 Operating expenses: Salary and service costs: Salary and related service costs 1,649.2 48.1 % 1,642.4 48.2 % (a) Third-party service costs 895.8 26.1 % 890.9 26.1 % Occupancy and other costs 291.6 8.5 % 30
Slide 4: 2021 Total Revenue Change
2021 Total Revenue Change First Quarter $ %∆ Prior Period Revenue $ 3,406.9 Foreign exchange rate impact (a) 95.7 2.8 % Acquisition revenue, net of disposition revenue (b) (15.1) (0.4)% Organic growth (c) (60.6) (1.8)% Current Period Revenue $ 3,426.9 0.6 % (a) Foreign exchange rate impact: calculat
Slide 5: 2021 Revenue by Discipline
2021 Revenue by Discipline First Quarter CRM CRM Experiential CRM Commerce and 2.6% Execution Brand & Support Consulting 7.2% 6.2% CRM % Organic Precision $ Mix % Growth Growth (a) Marketing 7.8% PR Advertising $ 2,003.7 3.6 % 1.2 % 9.3% CRM Precision Marketing 269.5 16.2 % 7.2 % CRM Commerce and He
Slide 6: 2021 Revenue by Region
2021 Revenue by Region First Quarter Latin Middle East America & Africa 1.8% 1.5% % Organic Asia $ Mix % Growth Growth (a) Pacific 11.7% United States $ 1,868.1 (1.4)% (1.0)% Other North America 104.4 1.3 % (3.2)% Euro Markets & UK 356.5 3.3 % (6.4)% Other Euro Markets & 584.5 1.1 % (3.2)% Europe Ot
Slide 7: Revenue by Industry
Revenue by Industry First Quarter – 2021 First Quarter – 2020 T&E Auto T&E Auto 10% 10% 9% 11% Telcom 5% Consumer Telcom Consumer Products 6% Products 8% 7% Tech Tech 9% Financial 8% Financial Services Services 7% 8% Retail Retail 7% 7% Food & Food & Beverage Beverage 14% 14% Pharma & Pharma & Healt
Slide 8: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2021 2020 Net Income $ 306.0 $ 271.7 Depreciation and Amortization of Intangible Assets 53.3 57.0 Share-Based Compensation 20.8 18.7 Other Items to Reconcile to Net Cash Used in Operating 2.5 14.6 Activities, net Free Cash Flow (a) $ 382.6 $ 362.0 Ad
Slide 9: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2021 2020 Free Cash Flow (a) $ 382.6 $ 362.0 Primary Uses of Cash: Dividends paid to Common Shareholders 140.1 141.7 Dividends paid to Noncontrolling Interest Shareholders 13.6 10.4 Capital Expenditures 12.4 26.4 Acquisition of Businesses and Affilia
Slide 10: Current Credit Picture
Current Credit Picture Twelve Months Ended March 31 2021 2020 EBITDA (a) $ 1,862.9 $ 2,342.5 Total Debt / EBITDA 3.1 x 2.2 x Net Debt (b) / EBITDA 0.5 x 1.0 x Debt Bank Loans (Due Less Than 1 Year) $ 5.9 $ 10.9 CP & Borrowings Issued Under Revolver — — USD-denominated Senior Notes (c) 4,600.0 4,000.
Slide 11: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a): Twelve months ended March 31, 2021 19.9 % Twelve months ended March 31, 2020 25.1 % Return on Equity (b): Twelve months ended March 31, 2021 34.5 % Twelve months ended March 31, 2020 54.9 % (a) Return on Invested Capital is After Tax Reported
Slide 12: Supplemental Financial Information
Supplemental Financial Information April 20, 2021 11
Slide 13: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2026 Senior 2022 Notes $1,400 Senior Notes $1,200 $1,000 2024 Senior 2027 2031 $800 Notes Euro 2030 Euro Senior Senior Senior Notes Notes Notes $600 $400 $200 Other Borrowings $0 4 26 21 8 30 3 25 7 29 2 24 1 6 28 1 23 0 5 27 0 22 9 31 -2 -2 -2 -2 -2 -3 -2 -2 -3 -2 -2 -
Slide 14: Net Interest Expense Detail
Net Interest Expense Detail First Quarter 2021 2020 Net Interest expense: Interest expense $ 53.8 $ 58.5 Interest income 6.3 12.7 Net Interest Expense $ 47.5 $ 45.8 April 20, 2021 13
Slide 15: 2021 Acquisition Related Expenditures
2021 Acquisition Related Expenditures Three Months Ended March 31 Acquisition of Businesses and Affiliates (a) $ — Acquisition of Additional Noncontrolling Interests (b) 2.2 Contingent Purchase Price Payments (c) 6.9 Total Acquisition Expenditures (d) $ 9.1 (a) Includes acquisitions of a majority in
Slide 16: Condensed Cash Flow
Condensed Cash Flow Three Months Ended March 31 2021 2020 Net Income $ 306.0 $ 271.7 Share-Based Compensation 20.8 18.7 Depreciation and Amortization of Intangible Assets 53.3 57.0 Other Items to Reconcile to Net Cash Used in Operating Activities, net 2.5 14.6 Changes in Operating Capital (843.5) (1
Slide 17: 2021 vs. 2020 Non-GAAP Financial Measures – EBITA
2021 vs. 2020 Non-GAAP Financial Measures – EBITA First Quarter 2021 2020 Revenue $ 3,426.9 $ 3,406.9 Operating expenses (a) 2,961.5 2,986.7 Operating Profit 465.4 420.2 Operating Profit Margin % 13.6 % 12.3 % Add back: Amortization of intangible assets 19.9 20.8 EBITA (b) $ 485.3 $ 441.0 EBITA Marg
Slide 18: Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA
Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA Three Months Ended Twelve Months Ended March 31 March 31 2021 2020 2021 2020 Net Income - Omnicom Group Inc. $ 287.8 $ 258.1 $ 975.1 $ 1,334.0 Net Income Attributed to Noncontrolling Interests 18.2 13.6 80.0 93.9 Net Income 306.0 271.7
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31 2021 2020 Net Cash Used in Operating Activities $ (460.9) $ (987.2) Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (843.5) (1,349.2) Free Cash Flow $ 382.6 $ 362.0 Three Months Ended Marc
Slide 20: FY 2020 & 2019 Revenue by Discipline
FY 2020 & 2019 Revenue by Discipline 2020 Quarterly Q1 $ Mix Q2 $ Mix Q3 $ Mix Q4 $ Mix Advertising $ 1,933.3 $ 1,530.1 $ 1,827.6 $ 2,220.4 CRM Precision Marketing 232.0 214.0 237.1 261.5 CRM Commerce and Brand 220.9 187.7 194.2 219.0 Consulting CRM Experiential 131.3 78.5 88.1 128.9 CRM Execution &
Slide 21: FY 2020 & 2019 Revenue by Discipline
FY 2020 & 2019 Revenue by Discipline 2020 Full Year 2019 Full Year % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) Advertising $ 7,511.4 (13.3)% (12.3)% $ 8,664.2 1.8 % 4.3 % CRM Precision Marketing 944.6 1.9 % (0.4)% 927.2 15.8 % 12.7 % CRM Commerce and Brand Consulting 821.
Slide 22: Disclosure
Disclosure The preceding materials have been prepared for use in the April 20, 2021 conference call on Omnicom’s results of operations for the three months ended March 31, 2021. The call will be archived on the Internet at http:// investor.omnicomgroup.com/investor-relations/news-events-and-filings/