Omnicom Group Inc. · NYSE:OMC
Omnicom — Q2 2006 Earnings Presentation
17 slides from Omnicom's earnings presentation, Jul 25, 2006
Slide 1: Omnicom Group Second Quarter 2006 Results Investor Presentation
Exhibit 99.2 Omnicom Group SECOND QUARTER 2006 RESULTS Investor Presentation July 25, 2006
Slide 2: Forward-Looking Statements and Other Information
The following materials have been prepared for use in the July 25, 2006 conference call on Omnicom’s results of operations for the quarter ended June 30, 2006. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain of the statem
Slide 3: 2006 vs. 2005 P&L Summary
2006 vs. 2005 P&L Summary Second Quarter Year to Date 2006 2005 % 2006 2005 % Revenue $ 2,823.4 $ 2,615.8 7.9% $ 5,386.3 $ 5,018.8 7.3% Operating Income 417.4 382.0 9.3% 701.9 639.3 9.8% % Margin 14.8% 14.6% 13.0% 12.7% Net Interest Expense 25.5 14.3 40.7 26.4 Profit Before Tax 391.9 367.7 6.6% 661.
Slide 4: 2006 vs. 2005 Earnings Per Share
2006 vs. 2005 Earnings Per Share Second Quarter Year to Date 2006 2005 2006 2005 Earnings per Share: Basic $ 1.43 $ 1.24 $ 2.36 $ 2.07 Diluted 1.42 1.24 2.34 2.05 Growth Rate, Diluted 14.5 % 14.1% Weighted Average Shares (millions): Basic 170.2 181.4 173.6 182.0 Diluted 172.0 182.8 175.2 183.5 Divid
Slide 5: 2006 Total Revenue Growth
2006 Total Revenue Growth Second Quarter Year to Date $ % $ % Prior Period Revenue $ 2,615.8 $ 5,018.8 Foreign Exchange (FX) Impact (a) 3.8 0.1% (61.4) -1.2% Acquisition Revenue (b) 16.5 0.6% 33.8 0.7% Organic Revenue (c) 187.3 7.2% 395.1 7.9% Current Period Revenue $ 2,823.4 7.9% $ 5,386.3 7.3% (a)
Slide 6: 2006 Revenue By Discipline
2006 Revenue By Discipline Second Quarter Year to 2006 Date PR PR 10.2% 10.2% CRM CRM 34.7% Advertising 34.7% Advertising 43.2% 43.2% Specialty Specialty 11.9% 11.9% (a) (a) $ Mix % Growth $ Mix % Growth Advertising 1,219.3 5.7% #### Advertising 2,324.3 5.5% CRM 978.6 9.6% #### CRM 1,870.4 9.8% PR 2
Slide 7: 2006 Revenue By Geography
2006 Revenue By Geography Second Quarter Year to Date 2006 Euro Euro Markets Markets United 20.2% United States States 19.6% 54.4% UK 55.1% UK 10.8% 10.7% Other Other 14.6% 14.6% (a) (a) $ Mix $ Growth $ Mix $ Growth United States $ 1,535.4 $ 107.7 United States $ 2,968.4 $ 228.6 Organic 91.1 Organi
Slide 8: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 6 Months Ended June 30, 2006 2005 Net Income $ 409.7 $ 376.3 Stock-Based Compensation Expense 33.9 47.4 Windfall Tax Benefit on Stock Compensation - 14.0 Depreciation and Amortization 90.3 85.5 Other Non-Cash Items to Reconcile to Net Cash Provided by Operat
Slide 9: Current Credit Picture
Current Credit Picture LTM ended June 30, 2006 2005 (a) Operating Income (EBIT) $ 1,402 $ 1,282 (a) Net Interest Expense $ 73.5 $ 45.2 EBIT / Net Interest 19.1 x 28.4 x Net Debt / EBIT 1.5 x 1.7 x Debt: Bank Loans (Due Less Than 1 Year) $ 17 $ 132 CP Issued Under $2.4B - 5 Year Revolver Due 6/23/11
Slide 10: Current Liquidity Picture
Current Liquidity Picture Total Amount As of June 30, 2006 Of Facility Outstanding Available Committed Facilities (a) 5 Year Revolver $ 2,400 $ - $ 2,400 Other Committed Credit Facilities 16 16 - Total Committed Facilities 2,416 16 2,400 (b) (b) Uncommitted Facilities 345 - - Total Credit Facilities
Slide 11: Acquisitions Summary
OmnicomGroup Acquisitions Summary 10
Slide 12: Acquisition Related Expenditures
Acquisition Related Expenditures 6 Months YTD 2006 (a) New Subsidiary Acquisitions $ 36 (b) Affiliates to Subsidiaries - (c) Affiliates 3 (d) Existing Subsidiaries 18 (e) Earn-outs 94 Total Acquisition Expenditures $ 151 Note: See appendix for subsidiary acquisition profiles. (a) Includes acquisitio
Slide 13: Potential Earn-out Obligations
Potential Earn-out Obligations The following is a calculation of future earn-out obligations as of June 30, 2006, assuming that the underlying acquired agencies continue to perform at their current levels: (a) 2006 2007 2008 2009 Thereafter Total $ 44 $ 146 $ 105 $ 55 $ 55 $ 405 (a) The ultimate pay
Slide 14: Potential Obligations
Potential Obligations In conjunction with certain transactions Omnicom has agreed to acquire (at the sellers’ option) additional equity interests. If these rights are exercised, there would likely be an increase in our net income as a result of our increased ownership and the reduction of minority i
Slide 15: Second Quarter Acquisitions: Entertainment Marketing Partners
Second Quarter Acquisitions Entertainment Marketing Partners Entertainment Marketing Partners ("EMP") is an entertainment- based media and marketing solutions company. EMP provides clients with access to the entertainment community through relationships with studios, networks and production companie
Slide 16: Second Quarter Acquisitions: Harrison & Wolf
Second Quarter Acquisitions Harrison & Wolf Harrison & Wolf (H&W) is a corporate communications agency providing strategic consultancy, contract publishing, advertising and corporate design services. The agency is located in Paris, France and will be part of the Corporate Communications Group of TBW
Slide 17: Second Quarter Acquisitions: EVB
Second Quarter Acquisitions EVB EVB is a full-service advertising agency that specializes in using immersive content to create engaging brand experiences. EVB's consumer-centric approach blends strategy with entertainment and interactivity to develop new marketing campaigns that generate brand aware