Slide 1: Management Presentation: Fourth Quarter and Year-End 2010 Results
Management Presentation March 7, 2011 Fourth Quarter and Year-End 2010 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: Key Highlights
N MDC(K)PARTNERS Key Highlights Q4 2010 organic revenue growth of 14.1%, an over 600 basis point increase from Q3 2010 and 800 basis point increase from Q2 2010 Full year 2010 organic revenue growth of 7.1%, exceeds forecast Q4 2010 revenue increased 42.7% to $213.4 million versus $149.5 million in
Slide 4: 2010 Actual Results vs. Guidance
MDC(K)PARTNERS 2010 Actual Results vs. Guidance 2010 Actual (USS im millions) Guidance Results Revenue $640 - $655 million EBITDA $86 - $88 million Free Cash Flow $41 - $43 million + Change in Working Capital and Other $30 million Total Free Cash Flow 371 - $73 million ‘Note: See appendix for dainti
Slide 5: Consolidated Revenue and Earnings
Consolidated Revenue and Earnings (SS sa mlions, exept percentage) MDC(K)PARTNERS Revenue Operating Expenses Cost of services sold Office and general expenses Depreciation and amortization Operating Income (Loss) Other income (expense) Thncome tax expense (recovery) Equity in earnings (loss) of aon-
Slide 6: Revenue by Segment
MDC(K)PARTNERS (US in lions, excep percentages) ‘Three Months Ended December 31, ‘Twelve Months Ended December 31, 2010 2009 % Change 2010 2009 % Change Revenue ‘Strategic Marketing Services $ 1302 $ 1059 23.0% S 4389 $ 3706 184% Performance Marketing Services 83.2 437 905 % 258.9 1745 48.3% + Strat
Slide 7: Fourth Quarter Revenue Growth by Segment
MDC(K)PARTNERS Strategic Performance Weighted Marketing Marketing Average Total Acquisition Growth 95% 72.0% 21.8% Foreign Exchange Growth 0.7% 1.2% 0.8% Total 23.0% 90.5% 42% + Strategic Marketing Services maintained double digit organic revenue growth for the year + Performance Marketing Services
Slide 8: Full Year 2010 Revenue Growth by Segment
Full Year 2010 Revenue Growth by Segment Strategic Performance Weighted Marketing Marketing Average Services Services Total Acquisition Growth 54% 49.1% 19.4% Foreign Exchange Growth 13% 2.0% 15% Total 18.4% 48.3% 28.0% + Full year organic revenue growth of 7.1 exceeded planned 5-7% growth MDC(K)PAR
Slide 9: Organic Growth Outperformance Over Time
MDC(K)PARTNERS Organic Growth Outperformance Over Time MDC Partners vs. Peers. Trailing 12 Month Organic Revenue 25.0% 20.0% ae 15.0% 4Q +14.1% 10.0% 5.0% 0.0% 5.0% 10.0% oe + MDC’s organic growth outperformance continues despite more difficult comparisons "Note: Peers include Omnicom, Interpublic,
Slide 10: Fourth Quarter 2010 Revenue by Client Sector
MDC(K)PARTNERS Fourth Quarter 2010 Revenue by Client Sector Healthcare, 5% Auto, 3% Technology, 7% Consumer Products, Financials, 9% 34% Other, 12% Communications, 15% Retail, 16% Note: Numivers may not add due to rouncing
Slide 11: Summary of Segment Results — EBITDA
10 MDC(K)PARTNERS Summary of Segment Results — EBITDA (€5$ mons, excep percentages) ‘Three Months Ended December 31, ‘Twelve Months Ended December 31, 3010 2009 % Change 2010 2009 % Change EBITDA Strategic Marketing Services S249 $207 206 % Ss 00 $ 714 34) % margin 19.1% 19.5% 15.7% 19.3% Performanc
Slide 12: Free Cash Flow
11 MDC(K)PARTNERS Free Cash Flow Three Months Ended December 31, Twelve Months Ended December 31, (USS in millions) 2010 2009 2010 2009 EBITDA $377 $208 $86.2 $71.6 ‘Net Income Attibutable to Noncontrolling Interests 6H (as) (10.1) 6H Capital Expenditures 3) @9) (12.5) (62) Cash Taxes (ay on aay ay
Slide 13: Liquidity
12 MDC(K)PARTNERS Liquidity Available Liquidity at December 31, 2010 (CSS in million) Commitment Under Facility $1000 Drawn - Letters of Credit 60 Funds Available Under Facility S$ 940 Total Cash 10.9 Liquidity $1049
Slide 14: 2011 Financial Outlook
13 2011 Financial Outlook 2011 Guidance MDC(K)PARTNERS Implied Year over Year* Change Revenue EBITDA Free Cash Flow + Change in Working Capital and Other Total Free Cash Flow $850 - $870 million $108 - $112 million $43 - $46 million +85 million $48 - $51 million * Year over year change compares to 2
Slide 15: Appendix
Appendix MDC(K)PARTNERS
Slide 16: Estimated Put Impact at December 31, 2010
15 MDC(K)PARTNERS Estimated Put Impact at December 31, 2010 Payment Consideration Tncremental USS in milions) Cash Stock Total EBITDA in Period 2011 23 06 29 29 2012 126 07 133 19 2013 37 1.0 47 24 2014 40 0s 45 08 Thereafter 13 03 16 2.0 Total $29.9 $3.1 $33.0 $10.0 Note: Excludes put rights of $48
Slide 17: Balance Sheet: 2016 Senior Notes
16 MDC(K)PARTNERS Balance Sheet: 2016 Senior Notes Principal Amount $290 Million Date October 23, 2009/May 11. 2010 Maturity November 1, 2016 —7 Year Security Unsecured Coupon 11% Ratings Moody’s - Corporate: B1; Notes: B2 S&P: Corporate: BB-; Notes: BB-
Slide 18: Balance Sheet: Revolving Credit Facility
Balance Sheet: Revolving Credit Facility Amount $100 Million Type Senior Secured Maturity October 23, 2014-5 Year Facility Fee SObps per annum Drawn Rate Prime + 300bps Covenants » Minimum EBITDA: $76 million + Fixed Charge Coverage Ratio: 1.25:1.0 + Senior Leverage Ratio: 2.0:1.0 MDC(K)PARTNERS
Slide 19: Summary Cash Flow Data
18 MDC(K)PARTNERS Summary Cash Flow Data ‘Twelve Months Ended December 31, (USS in millions) 2010 2009 Cash flows provided by continuing operating activities $39.8 $69.3 Discontinued operations (25) 1.6) Cash flows used in continuing investing activities ($129.5) ($66.2) Discontinued operations (02)
Slide 20: Definition of Non-GAAP Measures
19 MDC(K)PARTNERS 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. Org