Slide 1: Management Presentation – Third Quarter 2008 Results
Management Presentation November 3, 2008 Third Quarter 2008 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 “2008 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: Summary of Consolidated Results
Summary of Consolidated Results MDC(K)PARTNERS ssinitons ‘Three Months Ended September 30, ‘Nine Months Ended September 30, 2008 2007 _ % Change 2008 2007 _% Change Revenue S$ M34 $ 101 31% S 4444 $ 3917 B4% Operating Expenses Cost of services sold 957 905 58% 2969 2533 1722 % SGRA 328 360 0) 1059 1
Slide 4: Summary of Segment Results — Revenue
Summary of Segment Results — Revenue MDC(XK)PARTNERS (055 mittens) Three Months Ended September 30, ‘Nine Months Ended September 30, 2008 2007, % Change 2008 2007 % Change Revenne Strategic Marketing Services $s 920 $ 791 37% S$ 2488 $ 2281 91 % Customer Relationship Management 327 29.9 93 % 104.2 7
Slide 5: Organic and Acquisition Growth by Segment
MDC(K)PARTNERS Customer Specialized Weighted Relationship Communication Average Acquisition Growth 7 : z = Foreign Exchange Growth & Other 0.1% -0.1% -22% -0.5% Total 3.7% 9.3% 4.6% 3.1%
Slide 6: Acquisition Growth, Foreign Exchange Growth & Other
Acquisition Growth, Foreign Exchange Growth & Other Total Strategic Marketing 2.6% “ 14% 0.8% -0.3% 3.2% 1.2% 9.1% 31.6% 3% 13.4% Customer Relationship MDC(K)PARTNERS Specialized Communication Weighted Average Total
Slide 7: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA (5s inetiens) Three Months Ended September 30, ‘Nine Months Ended September 30, 2008 2007 % Change 2008 2007 % Change EBITDA Strategic Marketing Services 36 $135 11% $ 36 S$ 368 (0.4) % margin 16.6% 17.0% 47% 16.1% Customer Relationship Management 3
Slide 8: Summary of Segment Results — MDC's Share of EBITDA
MDC(K)PARTNERS Summary of Segment Results — MDC’s Share of EBITDA (©5S tuition) Three Months Ended September 30, ‘Nine Months Ended September 30, 2008 2007 % Change 2008, 2007 % Change MDC EBITDA Strategic Marketing Services S$ 25 $ 93 340 % S$ 330 $ 246 BS % Customer Relationship Management 3.0 27
Slide 9: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow Three Months Ended September 30, ‘Nine Months Ended September 30, (USS in millions) 2008 2007 2008 2007 MDC EBITDA $15.4 $93 $41.0 $244 Capital Expenditures @1) (co) a7) (15.0) Cash Taxes 1) @2 (09) a2 Cash Interest, net Qa) BH (ca) (8.6) Amounis and percentages may not
Slide 10: Liquidity Profile
MDC(K)PARTNERS Liquidity Profile Available Liquidity at September 30, 2008 (C55 inmiting Commitment Under Facility Revolver Term Loan A Delayed Draw Term Loan B 515 1218 Letters of Credit 49 Funds Available Under Facility $583 Available Cash 37 Liquidity S640
Slide 11: Temporal Put Obligations and Impact on EBITDA
10 MDC(K)PARTNERS Temporal Put Obligations and Impact on EBITDA Estimated Put Impact at September 30, 2008 ‘Payment Consideration Incremental (C35 inition Cash Stock Total EBITDA in Period 2008 $7.6 $0.3 $79 $24 2009 18 08 26 06 2010 279 60 339 37 2011 19 12 31 17 Thereafter 15.1 22 173 43 Total $54
Slide 12: 2008 Financial Outlook
11 MDC(K)PARTNERS 2008 Financial Outlook Revenue MDC's Share of EBITDA Free Cash Flow ‘Note: See appendix for definitions of non-GAAP measures.
Slide 13: Appendix
Appendix MDC(K)PARTNERS
Slide 14: Definition of Non-GAAP Measures
13 MDC(K)PARTNERS Definition of Non-GAAP Measures - EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization and stock-based compensation - MDC’s Share of EBITDA: MDC’s Share of EBITDA is a non-GAAP measure, that represents operating profit plus depre