Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Investor Presentation (September 2005)
18 slides from Stagwell's investor presentation, Sep 30, 2005
Slide 1: MDC Partners Investor Presentation
MDC Partners Investor Presentation September 30, 2005 mt
Slide 2: Forward Looking Statements & Other Information
MDC(()PARTNERS Forward Looking Statements & Other Information ‘This presentation contains forward-looking statements. The Company's representatives may also make forvard-Inoking stateraents| orally fiom tine to time, Statements in this presentation that axe not historical fact, including statements
Slide 3: Who Are We: Marketing Communications
Who Are We: Marketing Communications* > 30 brands providing marketing services in the USS., Canada and U.K > Strategically focused on high growth specialty communications: > Strong, well-diversified blue- chip clientele > Broad range of services Revenues by Geography Revenues by Service Revenues by
Slide 4: Who Are We: Secure Products International
Who Are We: Secure Products International ASIITON POTTER MER@URY Va METACA. Crincano One of world’s largest private postage stamp printers Highly specialized with revenues supported by long-term contracts One of three companies sharing multi-million dollar, multi-year contract as part of privatizati
Slide 5: Growth now focused on specialty communications
Growth now focused on specialty communications Direct response — Sales promotion — Branded entertainment Marketing strategies Enhance market targeting Measure program results Obtain immediacy of response Maintain cost-effectiveness.
Slide 6: Increased requirement to customize experiences
> Increased requirement to customize experiences > On-demand mind set — Consumers pick what they want, when they want it — Fragmented marketing environment Major marketers that best adapt will be the big winners
Slide 7: Dynamic, growing and rapidly changing market
Dynamic, growing and rapidly changing market > $575 billion market > U.S. - largest market — 82% of MDC revenue
Slide 8: Our Philosophy
Our Philosophy % > More and more marketers care about fresh thinking and new ideas > From a macro perspective the fundamental demand for marketing expertise is greater than ever before. Clients are trying to achieve growth but the competition for fees is more and more challenging. Our business manda
Slide 9: Our Mission
Our Mission % > Strategic business solutions for our clients — Help clients decomoditize brands and establish a sustainable competitive advantage — Improve overall go to market ROI for clients who embrace change and share an entrepreneurial spirit for building their businesses > Attraction of "best
Slide 10: Partner Firms
Partner Firms ‘ ee eT fisrsetcom| NORTHSTAR ACCENT CHINNICI | DIRECT Bruce Mau Design Inc. hello ZYMAN™ Frour — COLLE + Mevoy Ae ZiG bryan mills group vitrorok henderson bas mono 6, a Tay CUFT FREEMAN AN? PARTNERS 10
Slide 11: MDC Partnership Model
MDC Partnership Model > Acquisitions structured with “succession strategy” and “management incentive programs” Initial 51% - 70% investment Consideration in cash and MDC equity Corporate governance control resides in MDC Control optimizes financing flexibility Succession planning implemented
Slide 12: MDC Partnership Model
MDC Partnership Model > Agencies maintain independence, continued financial interest Creative autonomy Growth capital and increased visibility Industry expertise and counsel Business and strategic planning advice Financial and M&A expertise Critical succession planning
Slide 13: Support allows agencies to continue clear differentiation in the marketplace
Support allows agencies to continue clear differentiation in the marketplace Unique selling proposition Ability to win new business Aggressive and committed leadership Operational excellence Agencies build diversified client bases Revenue and earnings growth
Slide 14: Well established market position
Well established market position Highly retentive business Leadership and management Strong, consistent profitability Geographic focus “on strategy” sare oy
Slide 15: 1H 2005 Revenue and EBITDA
> 1H 2005 Revenue: > 1H 2005 EBITDA: $167.0 million $16.8 million > 55% Revenue and 64% EBITDA increase versus prior year — Increases result from strong organic and acquisition growth
Slide 16: MDC Partners — Secure Products International
MDC Partners — Secure Products International % > 1H 2005 Revenue: $33.9 million > 1H 2005 EBITDA: ($1.9) million > Reviewing strategic alternatives
Slide 17: 2005 Outlook
2005 Outlook > Enhance efficiency and productivity of existing businesses > Focus on organic growth > Generate contributions from new business and existing clients > Consistent acquisition strategy > Maintain world-class management capabilities 7
Slide 18: MDC Partners
MDC Partners Investor Presentation September 30, 2005 mt
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