Slide 1: Second Quarter 2019 Results
Second Quarter 2019 Results July 17, 2019 Investor Presentation
Slide 2: 2019 vs. 2018 P&L Summary
2019 vs. 2018 P&L Summary Second Quarter Second Quarter 2019 2018 Revenue $ 3,719.8 $ 3,859.6 Operating Expenses (a) 3,146.1 3,277.3 Operating Profit 573.7 582.3 Net Interest Expense 50.2 52.5 Income Tax Expense (b) 130.6 136.7 Tax Rate % 24.9% 25.8% Income From Equity Method Investments 1.2 1.7 Net
Slide 3: 2019 vs. 2018 Earnings per Share – Diluted
2019 vs. 2018 Earnings per Share – Diluted Second Quarter Second Quarter 2019 2018 Net Income - Omnicom Group Inc. $ 370.7 $ 364.2 Diluted Shares (millions) 220.9 228.1 Earnings per Share - Diluted $ 1.68 $ 1.60 Dividends Declared Per Common Share $ 0.65 $ 0.60 July 17, 2019 2
Slide 4: 2019 vs. 2018 P&L Summary (Six Months)
2019 vs. 2018 P&L Summary Year to Date Year to Date 2019 2018 Revenue $ 7,188.7 $ 7,489.2 Operating Expenses (a) 6,186.1 6,485.3 Operating Profit 1,002.6 1,003.9 Net Interest Expense 96.2 99.3 Income Tax Expense (b) 233.2 227.7 Tax Rate % 25.7% 25.2% Income From Equity Method Investments 0.7 2.6 Net
Slide 5: 2019 vs. 2018 Earnings per Share – Diluted (Six Months)
2019 vs. 2018 Earnings per Share – Diluted Year to Date Year to Date 2019 2018 Net Income - Omnicom Group Inc. $ 633.9 $ 628.3 Diluted Shares (millions) 222.5 229.8 Earnings per Share - Diluted $ 2.85 $ 2.73 Dividends Declared Per Common Share $ 1.30 $ 1.20 July 17, 2019 4
Slide 6: Total Revenue Change
2019 Total Revenue Change Second Quarter Year to Date $ %∆ $ %∆ Prior Period Revenue $ 3,859.6 $ 7,489.2 Foreign exchange rate impact (a) (100.3) -2.6% (222.4) -3.0% Acquisition revenue, net of disposition (147.6) -3.8% (277.7) -3.7% revenue (b) Organic growth (c) 108.1 2.8% 199.6 2.7% Current Perio
Slide 7: Revenue by Discipline
2019 Revenue by Discipline Healthcare Healthcare Second Quarter 7.8% Year to Date 7.6% CRM PR CRM PR Execution 9.4% Execution 9.5% & Support & Support 8.8% 9.4% CRM CRM Consumer Consumer Experience Experience 17.7% Advertising Advertising 56.3% 17.6% 55.9% % Organic % Organic $ Mix % Growth Growth (
Slide 8: Revenue by Region
2019 Revenue by Region Second Quarter Year to Date Latin Middle East Latin Middle East America & Africa America & Africa 2.6% 1.6% 2.6% 1.9% Asia Asia Pacific Pacific 11.0% 10.8% Euro Euro Markets & Markets & Other Other Europe Europe United United 17.8% 18.2% States States 53.9% 54.2% UK UK 9.7% 9.
Slide 9: Revenue by Region
2019 Revenue by Region Second Quarter Year to Date % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) United States $ 2,005.2 0.7% 3.2% United States $ 3,889.4 0.5% 2.6% Other North Other North 218.2 3.3% 9.0% 113.2 6.2% 11.8% America America UK 361.0 -0.7% 5.7% UK 699.8 -3.0% 3
Slide 10: Revenue by Industry
Revenue by Industry Year to Date – 2019 Year to Date – 2018 Auto Auto T&E T&E 11% 10% 7% 7% Telcom Telcom 5% 5% Consumer Consumer Products Products 9% Tech 9% 7% Tech 9% Financial Financial Services Retail Services 8% 5% 8% Retail 6% Food & Pharma & Food & Beverage Health Beverage 13% Pharma & 14% 1
Slide 11: Cash Flow Performance
Cash Flow Performance Six Months Ended June 30 2019 2018 Net Income $ 673.9 $ 679.5 Depreciation and Amortization of Intangible Assets 117.4 136.8 Share-Based Compensation 34.3 35.1 Other Items to Reconcile to Net Cash Used in Operating (11.9) 7.5 Activities, net Free Cash Flow (a) $ 813.7 $ 858.9 A
Slide 12: Cash Flow Performance
Cash Flow Performance Six Months Ended June 30 2019 2018 Free Cash Flow (a) $ 813.7 $ 858.9 Primary Uses of Cash: Dividends paid to Common Shareholders 280.4 278.1 Dividends paid to Noncontrolling Interest Shareholders 46.1 57.3 Capital Expenditures 48.8 89.8 Acquisition of Businesses and Affiliates
Slide 13: Current Credit Picture
Current Credit Picture Twelve Months Ended June 30 2019 2018 EBITDA (a) $ 2,376.8 $ 2,375.6 Gross Interest Expense on Indebtedness 247.3 230.6 EBITDA / Gross Interest Expense on Indebtedness 9.6 x 10.3 x Total Debt / EBITDA 2.3 x 2.1 x Net Debt (b) / EBITDA 1.1 x 1.2 x Debt Bank Loans (Due Less Than
Slide 14: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a): Twelve months ended June 30, 2019 23.3% Twelve months ended June 30, 2018 20.2% Return on Equity (b): Twelve months ended June 30, 2019 56.3% Twelve months ended June 30, 2018 50.1% (a) Return on Invested Capital is After Tax Reported Operati
Slide 15: Supplemental Financial Information
Supplemental Financial Information July 17, 2019 14
Slide 16: Omnicom Debt Structure
Omnicom Debt Structure Short-term Debt $16 2019 OFL Short-term Euro Notes $592 2026 Senior 2019 Senior Notes Notes $1,400 $500 2020 Senior Notes $1,000 2024 Senior Notes $750 2022 Senior Notes $1,250 The above chart sets forth Omnicom’s debt outstanding at June 30, 2019. The amounts reflected above
Slide 17: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2026 Senior 2022 Notes $1,400 Senior Notes $1,200 2020 Senior Notes $1,000 2024 Senior $800 Notes 2019 Other Senior Borrowings $600 Notes $400 $200 $0 19 9 20 0 21 1 22 2 23 3 24 4 25 5 26 6 -1 -2 -2 -2 -2 -2 -2 -2 n- n- n- n- n- n- n- n- ec ec ec ec ec ec ec ec Ju Ju J
Slide 18: Acquisition Related Expenditures
2019 Acquisition Related Expenditures Six Months Ended June 30 Acquisition of Businesses and Affiliates (a) $ 0.7 Acquisition of Additional Noncontrolling Interests (b) 3.1 Contingent Purchase Price Payments (c) 30.2 Total Acquisition Expenditures (d) $ 34.0 (a) Includes acquisitions of a majority i
Slide 19: Condensed Cash Flow
Condensed Cash Flow Six Months Ended June 30 2019 2018 Net Income $ 673.9 $ 679.5 Share-Based Compensation 34.3 35.1 Depreciation and Amortization of Intangible Assets 117.4 136.8 Other Items to Reconcile to Net Cash Used in Operating Activities, net (11.9) 7.5 Changes in Operating Capital (1,306.6)
Slide 20: Supplemental Information
Supplemental Information Second Quarter Year to Date % of % of % of % of 2019 Rev 2018 Rev 2019 Rev 2018 Rev Revenue $ 3,719.8 $ 3,859.6 $ 7,188.7 $ 7,489.2 Operating expenses: Salary and service costs 2,665.2 71.6% 2,772.9 71.8% 5,232.8 72.8% 5,485.7 73.2% Occupancy and other costs 315.4 8.5% 319.6
Slide 21: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases From 2009 through June 30, 2019, Omnicom distributed 105% of Net Income to shareholders through Dividends and Share Repurchases. 105% 104% $12.0 $11.0 107% $10.3 $10.0 108% $9.0 4.2 110% 3.9 $7.9 3.4 $8.0 $ In Billions 110% $6
Slide 22: 2019 vs. 2018 Non-GAAP Financial Measures – EBITA
2019 vs. 2018 Non-GAAP Financial Measures – EBITA Second Quarter Year to Date 2019 2018 2019 2018 Revenue $ 3,719.8 $ 3,859.6 $ 7,188.7 $ 7,489.2 Operating expenses (a) 3,146.1 3,277.3 6,186.1 6,485.3 Operating Profit 573.7 582.3 1,002.6 1,003.9 Operating Profit Margin % 15.4% 15.1% 13.9% 13.4% Add
Slide 23: Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA
Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA Three Months Ended Six Months Ended Twelve Months Ended June 30 June 30 June 30 2019 2018 2019 2018 2019 2018 Net Income - Omnicom Group Inc. $ 370.7 $ 364.2 $ 633.9 $ 628.3 $ 1,332.0 $ 1,146.3 Net Income Attributed to Noncontrolling I
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Six Months Ended June 30 2019 2018 Net Cash Used in Operating Activities $ (492.9) $ (572.9) Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (1,306.6) (1,431.8) Free Cash Flow $ 813.7 $ 858.9 Six Months Ended June 30
Slide 25: Disclosure
Disclosure The preceding materials have been prepared for use in the July 17, 2019 conference call on Omnicom’s results of operations for the three and six months ended June 30, 2019. The call will be archived on the Internet at http://investor.omnicomgroup.com/investor-relations/news-events-and-fil