Slide 1: Third Quarter 2012 Results
Third Quarter 2012 Results October 16, 2012 Investor Presentation
Slide 2: 2012 vs. 2011 P&L Summary
2012 vs. 2011 P&L Summary Third Quarter Year to Date 2012 2011 % Δ 2012 2011 % Δ Revenue $ 3,406.6 $ 3,380.9 0.8% $ 10,274.8 $ 10,019.6 2.5% EBITA (a) 414.6 397.1 4.4% 1,331.4 1,251.4 (b) 6.4% % Margin 12.2% 11.7% 13.0% 12.5% Amortization of Intangibles 27.3 23.7 75.2 67.7 Operating Income $ 387.3 $
Slide 3: 2012 vs. 2011 P&L Summary
2012 vs. 2011 P&L Summary Third Quarter Year to Date 2012 2011 % Δ 2012 2011 % Δ Operating Income $ 387.3 $ 373.4 3.7% $ 1,256.2 $ 1,183.7 6.1% % Margin 11.4% 11.0% 12.2% 11.8% Net Interest Expense 40.3 31.9 104.3 91.8 (a) Income Taxes 118.7 117.1 389.9 349.0 % Tax Rate 34.2% 34.3% 33.8% 32.0% Incom
Slide 4: 2012 vs. 2011 Net Income and Earnings Per Share
2012 vs. 2011 Net Income and Earnings Per Share Third Quarter Year to Date 2012 2011 2012 2011 Net Income - Omnicom Group $ 203.9 $ 203.7 $ 691.2 $ 680.7 Net Income - Participating Securities (4.5) (2.3) (15.4) (7.3) Net Income Available for Common Shares $ 199.4 $ 201.4 $ 675.8 $ 673.4 Diluted Shar
Slide 5: 2012 Total Revenue Change
2012 Total Revenue Change Third Quarter Year to Date $ % Δ $ % Δ Prior Period Revenue $ 3,380.9 $ 10,019.6 Foreign Exchange (FX) Impact (a) (115.3) -3.4% (281.8) -2.8% Acquisition/Disposition Revenue (b) 23.5 0.7% 79.9 0.8% Organic Revenue (c) 117.5 3.5% 457.1 4.5% Current Period Revenue $ 3,406.6 0
Slide 6: 2012 Revenue by Discipline
2012 Revenue by Discipline Third Quarter Year to Date Specialty Specialty 7.1% 7.3% PR PR 9.2% 9.2% Advertising Advertising 46.6% 47.0% CRM CRM 37.1% 36.5% % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) Advertising $ 1,587.0 2.4% 5.7% Advertising $ 4,827.9 4.6% 7.1% CRM 1,26
Slide 7: 2012 Revenue by Geography
2012 Revenue by Geography Third Quarter Year to Date UK UK 9.2% 8.9% Rest of Rest of World World 23.7% 23.1% Euro Euro Markets Markets 15.5% 16.1% U.S. U.S. 51.6% 51.9% October 16, 2012 6
Slide 8: 2012 Revenue by Geography
2012 Revenue by Geography Third Quarter Year to Date $ Mix $ Growth $ Mix $ Growth United States $ 1,758.1 $ 54.9 United States $ 5,337.0 $ 217.0 Organic 53.4 Organic 222.3 Acquisition 1.5 Acquisition (5.3) International $ 1,648.5 $ (29.2) International $ 4,937.8 $ 38.2 Organic 64.1 Organic 234.8 Ac
Slide 9: Revenue by Industry
Revenue by Industry Third Quarter – 2012 Third Quarter – 2011 Growth T&E Auto T&E Auto Auto 12.6% 6% 9% 6% 8% Telcom Telcom 7% 7% Consumer Food & Beverage 0.3% Consumer Products Products 9% Consumer Products 3.9% Tech 9% Tech 9% 9% Financial Financial Services -1.4% Financial Services Services 9% Ph
Slide 10: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30 2012 2011 Net Income $ 773.9 $ 753.2 Depreciation and Amortization Expense 210.6 203.6 Share-Based Compensation Expense 63.1 52.7 Other Non-Cash Items to Reconcile to Net Cash Provided by Operating (b) (81.6) (143.9) Activities, net Free Cash Flow
Slide 11: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30 2012 2011 Free Cash Flow (a) $ 966.0 $ 865.6 Primary Uses of Cash: Dividends 235.4 199.0 Dividends paid to Noncontrolling Interest Shareholders 78.9 69.8 Capital Expenditures 158.7 114.2 Acquisitions and Payments for Additional Interest in Control
Slide 12: Current Credit Picture
Current Credit Picture Twelve Months Ended September 30 2012 2011 EBITDA (a) $ 2,024.4 $ 1,894.3 Gross Interest Expense 169.8 157.4 EBITDA / Gross Interest Expense 11.9 x 12.0 x Total Debt / EBITDA 2.2 x 1.7 x Net Debt (b) / EBITDA 1.2 x 1.2 x Debt Bank Loans (Due Less Than 1 Year) $ 11 $ 17 CP & Bo
Slide 13: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve Months Ended September 30, 2012 15.7% Twelve Months Ended September 30, 2011 15.7% Return on Equity (b) : Twelve Months Ended September 30, 2012 28.3% Twelve Months Ended September 30, 2011 24.5% (a) Return on Invested Capital is Afte
Slide 14: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases Omnicom’s Revenues and Net Income has doubled since 2002 (a) . From 2002 through Q3 2012, Omnicom distributed over 95% of Net Income to shareholders through Dividends and Share Repurchases. 9.0 $8.90 $8.77 8.0 7.0 $6.67 Billio
Slide 15: Supplemental Financial Information
Supplemental Financial Information October 16, 2012 14
Slide 16: Omnicom Debt Structure
Omnicom Debt Structure Bank Loans $11 2032 Convert 2038 Convert $253 $407 2016 Senior Notes $1,000 2019 Senior Notes 2022 Senior Notes $500 $1,250 2020 Senior Notes $1,000 The above chart sets forth Omnicom’s debt outstanding at September 30, 2012. The amounts reflected above for the 2016, 2019, 202
Slide 17: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2022 Senior Notes $1,250 2016 2020 Senior Notes Senior Notes $1,000 $750 2019 Senior Notes $500 2032 Convert 2038 Convert $250 Other Borrowings $0 Our 2038 Convertible Notes are putable in June 2013, 2018, 2023 and annually thereafter until maturity. Our 2032 Convertibl
Slide 18: Senior Notes Due 2022 - $1.25 Billion, issued in Separate Tranches
Senior Notes Due 2022 - $1.25 Billion, issued in 2 Separate Tranches April 2012 Issuance August 2012 Issuance Principal Amount $750 Million $500 Million Omnicom Group Inc. Omnicom Group Inc. Co - Issuers Omnicom Capital Inc. Omnicom Capital Inc. Date April 23, 2012 August 9, 2012 Maturity May 1, 202
Slide 19: Condensed Cash Flow
Condensed Cash Flow Nine Months Ended September 30 2012 2011 Net Income $ 773.9 $ 753.2 Share-Based Compensation Expense 63.1 52.7 Depreciation and Amortization 210.6 203.6 Gain on Remeasurement of Equity Interest in Clemenger Group - (123.4) Other Non-Cash Items to Reconcile to Net Cash Provided by
Slide 20: 2012 Acquisition Related Expenditures
2012 Acquisition Related Expenditures Year to Date Acquisitions of Businesses and Affiliates (a) $ 85.6 Additional Interest in Controlled Subsidiaries (b) 19.2 Earn-outs on acquisitions completed prior to January 1, 2009 (c) 31.7 Earn-outs on acquisitions completed after January 1, 2009 (c) 30.6 Tot
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 3 Months Ended September 30 12 Months Ended September 30 2012 2011 2012 2011 Revenue $ 3,406.6 $ 3,380.9 $ 14,127.7 $ 13,606.5 Operating Expenses, excluding Depreciation and Amortization 2,947.4 2,937.7 12,103.3 11,712.2 EBITDA 459.2 443.2 2,024.4 1,894.3 Deprecia
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Nine Months Ended September 30 2012 2011 Net Free Cash Flow $ (379.9) $ (438.6) Cash Flow items excluded from Net Free Cash Flow: Changes in Operating Capital (719.9) (865.1) Proceeds from Short-term & Long-term Debt, net 1,274.6 (35.4) Repayment of Convertible De
Slide 23: Third Quarter Acquisition: NIM Digital
Third Quarter Acquisition Founded in 2004, NIM Digital is one of China's leading digital agencies, providing fully integrated online marketing and strategic services to its clients. NIM Digital’s original expertise in digital media buying has grown to include capabilities in search, social and conte
Slide 24: Third Quarter Acquisition: Face to Face Communications
Third Quarter Acquisition Face to Face Communications is a healthcare communications company offering strategic consulting, research, conceptual and creative design, on-line media & content management, event planning & logistical services and medical education to physicians, pharmacies and patients.
Slide 25: Third Quarter Acquisition: Chameleon Communications International
Third Quarter Acquisition Chameleon Communications International provides medical communication services to the pharmaceutical, biotech and medical device industries, providing strategic marketing, medical and regulatory advisory services to its clients. Headquartered in London, United Kingdom with
Slide 26: Third Quarter Acquisition: Philippe Becker Design
Third Quarter Acquisition Founded in 1998, Philippe Becker Design specializes in brand consultancy services, including new brand creation and revitalization, brand strategy and positioning, concept development ideation and facilitation, naming, brand identity, package design, structural design and p