Slide 1: First Quarter 2016 Results
First Quarter 2016 Results April 19, 2016 Investor Presentation
Slide 2: 2016 vs. 2015 P&L Summary – First Quarter
2016 vs. 2015 P&L Summary – First Quarter First Quarter 2016 2015 Revenue $ 3,499.1 $ 3,469.2 (a) EBITA 420.4 405.0 Margin % 12.0% 11.7% Amortization of Intangibles 28.3 27.3 Operating Income $ 392.1 $ 377.7 Margin % 11.2% 10.9% (a) EBITA is a non-GAAP financial measure. See page 22 for the definiti
Slide 3: 2016 vs. 2015 P&L Summary – First Quarter
2016 vs. 2015 P&L Summary – First Quarter First Quarter 2016 2015 Operating Income $ 392.1 $ 377.7 Net Interest Expense 40.1 34.2 Income Taxes 115.5 112.7 Tax Rate % 32.8% 32.8% Loss from Equity Method Investments (0.2) (1.0) Noncontrolling Interests 17.9 20.7 Net Income - Omnicom Group $ 218.4 $ 20
Slide 4: 2016 vs. 2015 Earnings Per Share – First Quarter
2016 vs. 2015 Earnings Per Share – First Quarter First Quarter 2016 2015 Net Income - Omnicom Group $ 218.4 $ 209.1 Net Income allocated to Participating Securities (1.5) (2.8) Net Income available for common shares $ 216.9 $ 206.3 Diluted Shares (millions) 241.1 247.4 EPS - Diluted $ 0.90 $ 0.83 Di
Slide 5: 2016 Total Revenue Change
2016 Total Revenue Change First Quarter $ %∆ Prior Period Revenue $ 3,469.2 (a) Foreign Exchange (FX) Impact (96.6) -2.8% (b) Acquisition/Disposition Revenue (4.2) -0.1% (c) Organic Revenue 130.7 3.8% Current Period Revenue $ 3,499.1 0.9% (a) The FX Impact is calculated by translating the current pe
Slide 6: 2016 Revenue by Region
2016 Revenue by Region First Quarter Latin Africa America MidEast 2.2% 1.6% Asia Pacific % Organic 10.1% (a) $ Mix % Growth Growth Euro North America $ 2,123.2 2.7% 4.5% Markets & Other UK 337.0 -2.8% 2.2% Europe Euro & Other Europe 552.7 -0.4% 3.0% 15.8% North Asia Pacific 354.3 -0.7% 5.1% UK Ameri
Slide 7: 2016 Revenue by Discipline
2016 Revenue by Discipline First Quarter Specialty 7.4% PR 9.1% % Organic $ Mix % Growth Growth (a) Advertising $ 1,803.1 4.0% 7.9% CRM 1,120.5 -3.2% -0.7% PR 318.8 -1.5% -0.9% Advertising 51.5% Specialty 256.7 1.1% 2.2% CRM 32.0% (a) “Organic Growth” reflects the year-over-year increase or decrease
Slide 8: Revenue by Industry
Revenue by Industry First Quarter – 2016 First Quarter – 2015 Telcom 4% T&E T&E Auto Auto 7% 8% 6% 8% Telcom 5% Consumer Consumer Products Products Tech Tech 10% 9% 9% 10% Financial Financial Services Services Retail 7% Retail 7% 6% 7% Food & Food & Beverage Beverage Pharma & Pharma & 13% 13% Health
Slide 9: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2016 2015 Net Income $ 236.3 $ 229.8 Depreciation and Amortization Expense 74.2 74.2 Share-Based Compensation Expense 23.0 24.6 Other Items to Reconcile to Net Cash Used in Operating Activities, net 12.4 (7.1) Free Cash Flow (a) $ 345.9 $ 321.5 Addit
Slide 10: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2016 2015 Free Cash Flow (a) $ 345.9 $ 321.5 Primary Uses of Cash: Dividends 122.2 126.2 Dividends paid to Noncontrolling Interest Shareholders 14.9 25.0 Capital Expenditures 41.4 38.2 Acquisition of Businesses and Affiliates, Acquisition of Addition
Slide 11: Current Credit Picture
Current Credit Picture Twelve Months Ended March 31 2016 2015 EBITDA (a) $ 2,225.6 $ 2,236.8 Gross Interest Expense 187.8 173.1 EBITDA / Gross Interest Expense 11.9 x 12.9 x Total Debt / EBITDA 2.1 x 2.1 x (b) Net Debt / EBITDA 1.3 x 1.4 x Debt Bank Loans (Due Less Than 1 Year) $ 39 $ 10 CP & Borrow
Slide 12: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve Months Ended March 31, 2016 19.3% Twelve Months Ended March 31, 2015 18.9% Return on Equity (b): Twelve Months Ended March 31, 2016 46.3% Twelve Months Ended March 31, 2015 36.3% (a) Return on Invested Capital is After Tax Reported Op
Slide 13: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases From 2006 through March 31, 2016, Omnicom distributed over 110% of Net Income to shareholders through Dividends and Share Repurchases. 110% 111% $12.0 110% $9.6 $9.8 $10.0 107% $8.5 110% $ In Billions $7.4 $8.0 106% $6.4 106%
Slide 14: Supplemental Financial Information
Supplemental Financial Information April 19, 2016 13
Slide 15: Omnicom Debt Structure
Omnicom Debt Structure Bank Loans $39 2024 Senior Notes 2016 Senior Notes $750 $1,000 2019 Senior Notes $500 2022 Senior Notes $1,250 2020 Senior Notes $1,000 The above chart sets forth Omnicom’s debt outstanding at March 31, 2016. The amounts reflected above for the 2016, 2019, 2020, 2022 and 2024
Slide 16: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2022 Senior Notes $1,250 2016 2020 Senior Senior Notes Notes $1,000 2024 Senior Notes $750 2019 Senior Notes $500 $250 Other Borrowings $0 The above chart sets forth Omnicom’s debt maturity profile at March 31, 2016. On April 6, 2016, the Company issued $1.4 billion pri
Slide 17: 2016 Acquisition Related Expenditures
2016 Acquisition Related Expenditures Year to Date (a) Acquisition of Businesses and Affiliates $ 86.6 (b) Acquisition of Additional Noncontrolling Interests 19.8 (c) Contingent Purchase Price Payments 8.2 Total Acquisition Expenditures (d) $ 114.6 (a) Includes acquisitions of a majority interest in
Slide 18: Condensed Cash Flow
Condensed Cash Flow Three Months Ended March 31 2016 2015 Net Income $ 236.3 $ 229.8 Share-Based Compensation Expense 23.0 24.6 Depreciation and Amortization 74.2 74.2 Other Items to Reconcile to Net Cash Used in Operating Activities, net 12.4 (7.1) Changes in Operating Capital (807.1) (559.5) Net C
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended March 31 Twelve Months Ended March 31 2016 2015 2016 2015 Revenue $ 3,499.1 $ 3,469.2 $ 15,164.3 $ 15,284.8 Operating Expenses, excluding Depreciation and Amortization 3,032.8 3,017.3 12,938.7 13,048.0 EBITDA 466.3 451.9 2,225.6 2,236.8 Deprecia
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended March 31 2016 2015 (a) Net Free Cash Flow $ (128.7) $ (155.6) Cash Flow items excluded from Net Free Cash Flow: Changes in Operating Capital (807.1) (559.5) Proceeds from Short-term Debt, net 13.3 2.7 Other Financing Activities, net (13.2) (9.0)
Slide 21: Supplemental Information
Supplemental Information First Quarter 2016 % of Rev 2015 % of Rev Revenue $ 3,499.1 $ 3,469.2 Operating expenses: Salary and service costs $ 2,653.1 75.8% $ 2,620.8 75.6% Office and general expenses 379.7 10.9% 396.5 11.4% Depreciation and amortization 74.2 2.1% 74.2 2.1% Total operating expenses $
Slide 22: First Quarter Acquisition
First Quarter Acquisition DDB Worldwide purchased a controlling interest in Grupo ABC. Grupo ABC is one of Brazil’s largest marketing and communications groups, with a versatile group of agencies providing advertising, CRM, public relations consultancy, promotion, events and digital marketing servic
Slide 23: Disclosure
Disclosure The preceding materials have been prepared for use in the April 19, 2016 conference call on Omnicom’s results of operations for the period ended March 31, 2016. The call will be archived on the Internet at http://investor.omnicomgroup.com/investor-relations/news-events-and-filings/. Forwa