Slide 1: Management Presentation: Second Quarter 2011 Results
MDC(X})PARTNERS Management Presentation July 28, 2011 Second Quarter 2011 Results (0)
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION ‘This presentation, incinding our “2011 Financial Outlook”, contains forward-looking statements. The Company's representatives may also make forward-looking Statements orally fiom time to time. Statements in this presentation that are not historical fac
Slide 3: Key Highlights
KEY HIGHLIGHTS Q2 2011 organic revenue growth of 21.2% Q2 2011 revenue increased 41.6% to $240.5 million versus $169.9 million in Q2 2010 Q2 2011 EBITDA increased 74.3% to $32.5 million versus $18.6 million in Q2 2010 Q2 2011 EBITDA margins increased 250 basis points to 13.5% versus 11.0% in Q2 2010
Slide 4: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS ©SSinuation, aeptpeceies) ‘Three Months Ended June 30, ‘Six Months Ended June 30, 2011 2010 %6 Change EDT 2010 _% Change Revenue 5 mos $ 1699 N6% $4580 § 3058 198% ‘Operating Expenses Cost of services sold 1624 1164 396% 36 2129 510% Office and general expenses 538
Slide 5: Summary of Segment Results - Revenue
SUMMARY OF SEGMENT RESULTS - REVENUE (ESS in mons, except percentages) ‘Three Months Ended June 30, ‘Six Months Ended June 30, 2001 2010, % Change 201 2010, % Change Revenue ‘Strategic Marketing Services S$ 1550 $ 1069 450 % $ 2965 $ 1981 40.6 % Performance Marketing Services 855 3.0 35.7 9% 161.5 1
Slide 6: Second Quarter 2011 Revenue Growth by Segment
SECOND QUARTER 2011 REVENUE GROWTH BY SEGMENT Strategic Performance Weighted Marketing Marketing ‘Average Services Services Total Acquisition Growth 18.7% 20.0% 19.2% Foreign Exchange Growth 1.1% 13% 12% Total 45.0% 35.7% 41.6%
Slide 7: Year to Date 2011 Revenue Growth by Segment
YEAR TO DATE 2011 REVENUE GROWTH BY SEGMENT Strategic Performance Weighted Marketing Marketing ‘Average Services Services Total Acquisition Growth 20.7% 33.2% 25.1% Foreign Exchange Growth 1.0% 13% 1.1% Total 49.6% 50.0% 49.8%
Slide 8: Second Quarter Revenue by Client Sector
SECOND QUARTER REVENUE BY CLIENT SECTOR Q2 2011 Healthcare, 4% Auto, 3% ‘Consumer Technology, 10% ts, 35% ——) — Communications, Retail, 14% 12% Note: Actuala may nat fot duet rounding Q2 2010 Healthcare, 6% Auto, 3% ‘Constnner; Technokony, 8% Products, 31% Financials, 12%
Slide 9: Organic Growth Outperformance Despite More Difficult Comparisons
25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 5.0% -10.0% ORGANIC GROWTH Outperformance Despite More Difficult Comparisons MDC Partners vs. Peers Trailing 12 Month Organic Revenue Noe: Peers inete Omnicom, ntrpube, WPP Group, Havas and Pubs for 1006-1011 For 2011, Peers nude Omnicom, Publis, and Inerpubic
Slide 10: Summary of Segment Results - EBITDA
SUMMARY OF SEGMENT RESULTS - EBITDA (USSinaliens ceptpecetise) “Three Months Ended June 30, ‘Six Months Ended June 30, 2001 2010 2% Change 201 2010 % Change EBITDA ‘Strategic Marketing Services S293 $ 162 813% 8 443° $282 S71 % ‘margin 18.9% 15.2% 9% 14.206 Performance Marketing Services a5 65 313%
Slide 11: Free Cash Flow
FREE CASH FLOW Three Months Ended June 30, ‘Six Months Ended June 30, (GSS in millions) 2011 2010 2011 2010 EBITDA $32.5 $186 $472 $219 ‘Net Income A\tibutable to Noncontrolling Interests (Co) @0) @) Go) Capital Expenditures G3) Go) (2) on Cash Taxes 1) 2 1) 0.8) Cash Interest, net and other ce OD,
Slide 12: Liquidity
LIQUIDITY Available Liquidity at June 30, 2011 (USS in millions) ‘Commitment Under Facility $__150.0 Drawn 34.5 Letters of Credit 62 Funds Available Under Facility $ 109.3 Total Cash 57. Liquidity $ 1s
Slide 13: 2011 Financial Outlook
2011 FINANCIAL OUTLOOK 2011 Guidance Revenue $850 - $870 million EBITDA $108 - $112 million Free Cash Flow $43 - $46 million + Change in Working Capital and Other +$5 million Total Free Cash Flow $48 - $51 million Note: See appendix for definitions of non-GAAP measures
Slide 14: Appendix
APPENDIX
Slide 15: Temporal Put Obligations and Impact on EBITDA
TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA (USS in millions) Cash Stock Total EBITDA in Period 2011 1.0 0.6 1.6 3.0 2012 133) 0.9 14.2 1B 2013 29 12 41 12 2014 37 0.6 43 0.8 Thereafter 719 0.5 8.4 28 Total $28.8 $3.8 $32.6 $9.7 ‘Note: eludes ptrighs of $592 milion exercisable pursuant to terminat
Slide 16: Balance Sheet: 2016 Senior Notes
BALANCE SHEET: 2016 SENIOR NOTES Principal Amount $345 Million Date October 23, 2009/May 11, 2010/April 19, 2011 Maturity November 1, 2016 Security Unsecured Coupon 11% Ratings Moody’s - Corporate: B1; Notes: B2 S&P: Corporate: B+; Notes: Bt
Slide 17: Balance Sheet: Revolving Credit Facility
BALANCE SHEET: REVOLVING CREDIT FACILITY Amount $150 Million ‘Type Senior Secured Maturity October 23, 2015 Facility Fee Sbps per annum Drawn Rate Prime + 225bps / LIBOR + 250bps Covenants - Minimum EBITDA: $86.3 million - Fixed Charge Coverage Ratio: 1.25:1.0 - Senior Leverage Ratio: 2.0:1.0 - Tota
Slide 18: Summary of Cash Flow
SUMMARY OF CASH FLOW Six Months Ended June 30, USS in millions) 2011 2010 Cash flows (used in) provided by continuing operating activities (25.1) $2.9 Discontinued operations 2 at) [Net cash (used in) provided by operating actvies (828.7) S18, Cash flows used in continuing investing activities (646.
Slide 19: Definition of Non-GAAP Measures
DEFINITION OF NON-GAAP MEASURES + EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization, stock- based compensation, acquisition deal costs, deferred acquisition consideration adjustments and profit distributions from affiliates. + Organic Growth: O