Omnicom Group Inc. · NYSE:OMC
Omnicom — Q2 2008 Earnings Presentation
15 slides from Omnicom's earnings presentation, Jul 22, 2008
Slide 1: Second Quarter 2008 Results Investor Presentation
Exhibit 99.2 Omnicom Group SECOND QUARTER 2008 RESULTS Investor Presentation July 22, 2008
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the July 22, 2008 conference call on Omnicom’s results of operations for the period ended June 30, 2008. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the stateme
Slide 3: 2008 vs. 2007 P&L Summary
2008 vs. 2007 P&L Summary Second Quarter Year to Date 2008 2007 % 2008 2007 % Revenue $ 3,476.9 $ 3,126.1 11.2% $ 6,672.3 $ 5,966.7 11.8% Operating Profit 516.8 461.6 12.0% 867.6 777.1 11.6% % Margin 14.9% 14.8% 13.0% 13.0% Net Interest Expense 18.7 22.2 29.7 40.5 Profit Before Tax 498.1 439.4 13.4%
Slide 4: 2008 vs. 2007 Earnings Per Share
2008 vs. 2007 Earnings Per Share Second Quarter Year to Date 2008 2007 2008 2007 Earnings per Share: Basic $ 0.97 $ 0.85 $ 1.62 $ 1.40 Diluted 0.96 0.84 1.61 1.38 Growth Rate, Diluted 14.3% 16.7% Weighted Average Shares (millions): Basic 317.5 325.8 317.9 328.4 Diluted 320.8 330.8 321.1 333.5 Divide
Slide 5: 2008 Total Revenue Growth
2008 Total Revenue Growth Second Quarter Year to Date $ % $ % Prior Period Revenue $ 3,126.1 $ 5,966.7 Foreign Exchange (FX) Impact (a) 162.9 5.2% 308.5 5.2% Acquisition Revenue (b) 38.0 1.2% 65.9 1.1% Organic Revenue (c) 149.9 4.8% 331.2 5.6% Current Period Revenue $ 3,476.9 11.2% $ 6,672.3 11.8% (
Slide 6: 2008 Revenue By Discipline
2008 Revenue By Discipline Second Quarter Year to Date PR PR 9.6% 9.7% CRM CRM 37.8% Advertising 37.2% Advertising 43.1% 43.3% Specialty Specialty 9.5% 9.8% Pie Chart (a) (a) $ Mix % Growth $ Mix % Growth Advertising 1,499.9 9.8% #### Advertising 2,891.2 11.5% CRM 1,313.8 17.2% #### CRM 2,481.3 16.1
Slide 7: 2008 Revenue By Geography
2008 Revenue By Geography Second Quarter Year to Date Euro Euro Markets Markets United 23.0% United States 22.5% States 50.4% UK 51.1% UK 9.9% 10.3% Other Other 16.7% 16.1% (a) (a) $ Mix $ Growth $ Mix $ Growth United States $ 1,751.3 $ 91.6 United States $ 3,412.5 $ 209.0 Organic 71.7 Organic 175.1
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 6 Months Ended June 30, 2008 2007 Net Income $ 515.6 $ 459.7 Stock-Based Compensation Expense 27.8 36.2 Depreciation and Amortization 115.7 98.3 Other Non-Cash Items to Reconcile to Net Cash Provided by Operations 58.6 43.4 Other Changes in Working Capital (
Slide 9: Current Credit Picture
Current Credit Picture LTM Ended June 30, 2008 2007 (a) Operating Income (EBIT) $ 1,750 $ 1,559 (a) Net Interest Expense $ 63.3 $ 91.4 EBIT / Net Interest 27.6 x 17.1 x Net Debt / EBIT 1.2 x 1.4 x Debt: Bank Loans (Due Less Than 1 Year) $ 23 $ 11 CP Issued Under $2.5B - 5 Year Revolver Due 6/23/11 -
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of June 30, 2008 Of Facility Outstanding Available Committed Facilities (a) 5 Year Revolver $ 2,500 $ - $ 2,500 Other Committed Credit Facilities 23 23 - Total Committed Facilities 2,523 23 2,500 (b) (b) Uncommitted Facilities 598 - - Total Credit Facilities
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures 6 Months YTD 2008 (a) New Subsidiary Acquisitions $ 53 (b) Affiliates to Subsidiaries - (c) Affiliates 9 (d) Existing Subsidiaries 57 (e) Earn-outs 109 Total Acquisition Expenditures $ 228 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisiti
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of June 30, 2008, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2008 2009 2010 2011 Thereafter Total $ 75 $ 104 $ 82 $ 28 $ 23 $ 312 (a) The ultimate paym
Slide 14: Potential Obligations
Potential Obligations In conjunction with certain transactions, Omnicom has agreed to acquire (at the sellers’ option) additional equity interests. If these rights are exercised, there would likely be an increase in our net income as a result of our increased ownership and the reduction of minority
Slide 15: Second Quarter Acquisitions
Second Quarter Acquisitions Sterling Brands Sterling Brands is a leading brand consultancy specializing in brand strategy and design. Specific services offered include brand positioning, strategic research, innovation, design planning, brand identity and packaging design. Sterling Brands is based in