Slide 1: Management Presentation – Fourth Quarter 2009 Results
Management Presentation February 25, 2010 Fourth Quarter 2009 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information This presentation, including our “2010 Financial Outlook”, contains forward-looking statements. The Company's representatives may also make forward. looking statements orally from time to time. Statements in this presentation that are a
Slide 3: 2009 Actual Results vs. Guidance
N 2009 Actual Results vs. Guidance 2009 (USS im miléon:) Guidance Revenue $545 - $575 million MDC EBITDA $63 - $65 million Free Cash Flow $39 - $40 million + Change in Working Capital and Other _ $15 - $20 million Total Free Cash Flow $54 - $60 million ‘Note: See appendix fr defition: ofnm-GAAP meaa
Slide 4: Summary of Consolidated Results
MDC(X)PARTNERS Summary of Consolidated Results (CSsmmilos, exept paces) ‘Three Months Ended December 31, ‘Year Ended December 31, 2009 2008 % Change 2009 2008 __% Change Revenue $s u97 $87 34% $ S459 S$ 5846 (6.6)% Operating Expenses Cost of services sold 947 997 (5.1) % 3543 3921 2.6% Office and ge
Slide 5: Summary of Segment Results — Revenue
MDC(K)PARTNERS Summary of Segment Results — Revenue (US in mins, excepe percentages) ‘Three Months Ended December 31, Twelve Months Ended December 31, 2009 2008 % Change 2009 2008 % Change Revenue Strategic Marketing Services S$ 1060 S$ 28 143% S$ 3714 $3086 Performance Marketing Services BI 9 59) 2
Slide 6: Fourth Quarter 2009 Revenue Growth by Segment
MDC(K)PARTNERS ter 2009 Revenue Growth by Segment Strategic Performance Weighted Marketing ‘Marketing Average Services Services Total Foreign Exchange Growth 17% 2.6% 2.0% Total 14.3% 15.9% 3.4%
Slide 7: 2009 Revenue Growth by Segment
MDC(K)PARTNERS 2009 Revenue Growth by Segment Strategic Performance Weighted Marketing ‘Marketing Average Services Services Total Foreign Exchange Growth 09% 15% 21.1% Total 2.1% 21.1% 6.6%
Slide 8: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA (C55 mens, except percents) ‘Three Months Ended December 31, Twelve Months Ended December 31, 2009 2008 36 Change 2009 2008 % Change EBITDA Strategic Marketing Services $20 $ 180 us % S$ 702 $ 586 198 % margin 189% 19.3% 18.8% 16.1% Performance Mark
Slide 9: Summary of Segment Results — MDC's Share of EBITDA
MDC(K)PARTNERS Summary of Segment Results — MDC’s Share of EBITDA (U8 i mins, except percentages) ‘Three Months Ended December 31, ‘Twelve Months Ended December 31, 2009 2008 % Change 2009 2008 % Change ‘MDC EBITDA Strategic Marketing Services $ wl $ 169 132% S$ 656 $ 533 230 % Performance Marketing
Slide 10: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow ‘Three Months Ended December 31, Twelve Months Ended December 31, (USS in mittions) 2009 2008 2009 2008 MDC EBITDA 518.3 si7.. $64.8 $61.0 Capital Expenditures @9) 40) (62) (14a) Cash Taxes O14 @1) (0.4) (1.0) Cash Interest, net and other (9.1) G9) 73) 2.7) Amounts and
Slide 11: Summary Cash Flow Data
10 MDC(K)PARTNERS Summary Cash Flow Data ‘Twelve Months Ended December 31, (USS in millions) 2009 2008 Cash flows provided by continuing operating activities $60.7 $60.9 Discontinued operations (0.8) (3.5) Cash flows used in continuing investing activities ($66.2) ($49.6) Discontinued operations = (
Slide 12: Liquidity
11 MDC(K)PARTNERS Liquidity Available Liquidity at December 31, 2009 USSinmilton) Commitment Under Facility $75.0 Letters of Credit 47 Funds Available Under Facility S$ 703 Total Cash 519 Liquidity S$ 1222
Slide 13: Estimated Put Impact
12 Estimated Put Impact at December 31, 2009 MDC(K)PARTNERS ‘Payment Consideration Incremental (USS i mens ‘ash Stock Total EBID. 2010 $79 $03 $8.2 $17 2011 19 07 26 07 2012 94 0s 99 16 2013 32 08 40 06 Thereafter 43 os 48 05 Total $26.7 828 $29.5 $5.1 Note: Excludes put rights of $3.6 million exerc
Slide 14: Earnout Obligations
13 Earnout Obligations US$ in milion) 2010 20 2012 Thereafter Total MDC(K)PARTNERS Estimated Earnout Impact at December 31, 2009 Payment Consideration Cash Stock Total $205 $0.0 $20.5 07 0.0 07 23 0.0 23 12 0.0 22 $30.6 $0.0 $30.6
Slide 15: Definition of Adjusted EBITDA
Definition of Adjusted EBITDA « Accounting changes now require: MDC(K)PARTNERS + Acquisitions - Third party deal costs expensed as incurred « Earnouts — Mark to market quarterly with changes flowing through the P&L » Adjusted EBITDA = MDC EBITDA as reported + add back of Acquisition Deal Costs +/- i
Slide 16: 2010 Financial Outlook
15 2010 Financial Outlook Revenue Adjusted MDC EBITDA Free Cash Flow ~ Change in Working Capital and Other Total Free Cash Flow 2010 Guidance * $573 - $584 million $69 - $71 million $35 - $37 million $5 million $40 - $42 million ‘Note: See appendix for definition: of non-GAAP mazar, * Giéauce does o
Slide 17: Appendix
Appendix MDC(K)PARTNERS
Slide 18: Balance Sheet: 2016 Senior Notes
MDC(K)PARTNERS Balance Sheet: 2016 Senior Notes Principal Amount $225 Million Date October 23, 2009 Maturity November 1, 2016-7 Year Security Unsecured Coupon 11% Ratings Moody's - Corporate: B1; Notes: B2 S&P: Corporate: BB-; Notes: B+
Slide 19: Balance Sheet: Revolving Credit Facility
Balance Sheet: Revolving Credit Facility Amount $75 Million Type Senior Secured Maturity October 23, 2014 - 5 Year Facility Fee 50bps per annum Drawn Rate Prime + 300bps Covenants » Minimum EBITDA: $50 million » Fixed Charge Coverage Ratio: 1.25:1.0 « Senior Leverage Ratio: 2.0:1.0 MDC(K)PARTNERS
Slide 20: Definition of Non-GAAP Measures
19 MDC(X)PARTNERS Definition of Non-GAAP Measures - EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization and stock-based compensation - MDC’s Share of EBITDA: MDC's Share of EBITDA is a non-GAAP measure, that represents operating profit plus depre