Slide 1: Management Presentation: Second Quarter 2006 Results
Management Presentation August 4, 2006 Second Quarter 2006 Results MDC(})PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information ‘This presentation contains forward-looking sstements. The Company”: repre-anatve: may alzo make ferward-locking statement: orally ftom time fo time, Statements in thi preventation that ae snot histrial fac including cttement:aboat the
Slide 3: Summary of Consolidated Results
is) Summary of Consolidated Results MDC(K)PARTNERS Amounts and percentages may not foot due ro rounding. USS in millions) Three Months Ended June 30, Six Months Ended June 30, 2006 2005 _% Change 2006 2005 % Change ‘Revenue $1001 $ 904 108 $ 1982 $ 1641 20.8 Operating Expenses Cost of services sold
Slide 4: Summary of Segment Results — Revenue
Summary of Segment Results — Revenue MDC(K)PARTNERS Discontinued Operations - Revenue Amounts and percentages may not foot du o rounding. $174 $181 (US$ ia milion) ‘Three Months Ended June 30, ix Months Ended June 30, 2006 2005, % Change 2006 2005, % Change ‘Revenue Strategic Marketing Services $ 58
Slide 5: Q2 2006 Marketing Communications Revenue Growth by Segment
MDC(K)PARTNERS Q2 2006 Marketing Communications Revenue Growth by Segment Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services ‘Management Services Total Acquisition Growth = ~ 0.5% 0.1% Foreign Exchange Growth 1.0% : 45% 1.6% Organic Growth 5.9% 29.4% 14% 91
Slide 6: YTD June 30, 2006 Marketing Communications Revenue Growth by Segment
YTD June 30, 2006 Marketing Communications Revenue Growth by Segment MDC(K)PARTNERS Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services ‘Management Services Total Acquisition Growth 12.5% . 13% 74% Foreign Exchange Growth 0.9% : 3.4% 1.3% Organic Growth 12.7
Slide 7: Summary of Group Results — Total EBITDA
Summary of Group Results — Total EBITDA MDC(K)PARTNERS US$ in mls) Three Months Ended June 30, Six Months Ended June 30, 2006 2005 6 Change 2006 2005 % Change EBITDA Strategic Marketing Services $92 $123 247) S$ Ul $ 186 134 Customer Relationship Management 14 1.0 485 31 19 60.8 Specialized Communic
Slide 8: Summary of Segment Results — MDC's Share of EBITDA
Summary of Segment Results — MDC’s Share of EBITDA MDC(K)PARTNERS Amounts and percentages may not fot dus to rounding. SS in millions) Three Months Ended June 30, Six Months Ended June 30, 2006 2005 % Change 2006 2005 % Change ‘MDC EBITDA Strategic Marketing Services S 66 $77 (3) $ 145 $ 120 212 (Cu
Slide 9: Cash EPS Reconciliation
Cash EPS Reconciliation (US$ and per share amounts in millions) MDC(K)PARTNERS Six Months Ended June 30, 2006 2005 ‘Net Loss fiom Continuing Operations GD G8) Depreciation & Amortization 127 104 Stock Based Compensation 53 18 Cash Eamings 3129 S104 Diluted Shares 23.8 22.9 [Cash EPS $0.54 30.55,
Slide 10: Free Cash Flow
Free Cash Flow (USS in millions) MDC(K)PARTNERS ‘Six Months Ended June 30, 2006 2005 Sources of Cash: ‘MDC EBITDA - Continuing Operations $137 $89 ‘MDC EBITDA - Discontinued Operations 14 (1.0) Cash Distributions to MDC from ‘Unconsolidated Affliates o4 05 Cash from Operations 15.6 84 ‘Uses of Cash:
Slide 11: Liquidity Profile
10, Liquidity Profile MDC(K)PARTNERS Available Liquidity at June 30, 2006 (USS in millions) ‘Commitment Under Credit Facility $100.0 Borrowings Under Credit Facility nS Letters of Credit, 39 Funds Available Under Credit Facility $24.6 Available Cash 43 Liquidity $28.9
Slide 12: Updated 2006 Guidance
14 (095 ions, excep per are mes) Updated 2006 Guidance MDC(K)PARTNERS Marketing Secure Comparate Communications Products Expenses Consolidated Original Updated Original Updated Original Updated Original ‘Updated Estimate Estimate Estimate | Estimate Estimate Estimate Estimate |_Estimate_ Revenue $38
Slide 13: Appendix
Appendix MDC(K)PARTNERS
Slide 14: Potential Contractual Put Obligations and Estimated Impact on EBITDA
13 Potential Contractual Put Obligations and Estimated Impact on EBITDA MDC(K)PARTNERS Estimated Put Impact at June 30, 2006 US$ in owsands) Cash Stock EBITDA 2006 $8,191 $206 $3,104 2007 7336 1,206 3,423 2008 29,202 7,380 7,938 2009 32344 8,704 4071 2010 10,825 3.970 288 Thereafter 2.662 1,757 578
Slide 15: Summary of Segments — Marketing Communications
14 MDC(K)PARTNERS Summary of Segments — Marketing Communications tegic Marketing Services Allard Johnson ACLC Colle & McVoy Crispin Porter Bogusky Fletcher Martin Kirshenbaum Bond + Partners Margeotes Fertitta Powell Vitro Robertson: Zyman Group Customer Relationship Management Accent Banjo Bratskei
Slide 16: Definition of Non-GAAP Metrics
15 - EBITDA: EBITDA is a non-GAAP measure, that represents operating income (loss) plus depreciation and amortization plus stock-based compensation. A reconciliation of “EBITDA” to the US GAAP reported results of operations has been provided by the Company in the tables included in the earnings rele