Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Bear Stearns 21st Annual Media Conference (March 2008)
16 slides from Stagwell's conference presentation, Mar 11, 2008
Slide 1: MDC Partners - Bear Stearns 21st Annual Media Conference
MDC(KX) PARTNERS Where Greal Talent Lives BEAR STEARNS 21ST ANNUAL MEDIA CONFERENCE March 11, 2008 (Nasdaq: MDCA / TSX: MDZ.A)
Slide 2: Miles Nadal, Chairman & Chief Executive Officer
MDC(K) PARTNERS Where Great Talent Lives Miles Nadal Chairman & Chief Executive Officer;
Slide 3: We May Look Like Other Ad Holding Companies...
JPARTNEF We May Look Like Other Ad Holding Companies... & > 40 brands in the marketing services and consulting business +> US, Canada and Europe > Nearly $550 million in revenues 2007 Revenue by Segment 2007 Revenue by Geography Specialized Communication UK 5 pier Senses Canada 17% 57% Strategic Mar
Slide 4: ...But We Are Unique...
MDC(K)PARTNERS ...But We Are Unique... - +> Small and nimble: Less than 1% share of North American marketing spend > Less media investment: Less than 5% of our revenues come from media buying > More invested in fast growing segments: Approximately 40% of our ro revenues are derived from digital and
Slide 5: ...And We Operate Very Differently
JPARTNER ...And We Operate Very Differently New Partners Have. rives Accelerated Results + Significant growth opportunities + Increasing rate of wins from large, multi-national brands -.. MDC Strategic + Strong Management Team Resource Center. + Expanding Margins + Industry Leading Margins + Industr
Slide 6: Strategic Resource Center services for partner firms
+> Team of world-class industry practitioners providing the following services: New client pitch assistance Planning Digital development & positioning Talent recruitment Cross-network referrals Public relations Acquisition due diligence General operational counsel
Slide 7: Large Accounts Are Attracted to our Partner Firms
MDC(K)PARTNERS Large Accounts Are Attracted to our Partner Firms _atan Increasing Rate rs 2004 2005 2006 2007 2008
Slide 8: Economic View
Economic View “Brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times” - John Quelch, Harvard Business School, “Marketing Your Way Through a Recession,” March 3, 2008
Slide 9: David Doft, Chief Financial Officer
MDC() PARTNERS Where Great Talent Lives David Doft Chief Financial Officer
Slide 10: Revenues Continue to Grow at an Accelerated Rate...
MDC(K)PARTNERS Revenues Continue to Grow at an Accelerated Rate... a F $US Millions : $2007 $600-$610 $600 + h® $547 $500 + pense $412 $400 + $350 $300 + $234 $200 + $100 + $0 : : t t { 2004 2005 2006 2007 2008E
Slide 11: ...And at a Multiple of our Peers
MDC(K)PARTNERS .And at a Multiple of our Peers $US Millions Peer Average Organic Growth (RGIOMCIWPP/PUB) Peer Average Total Growth (EG/OMCIWPP/PUB)
Slide 12: Excellent Potential for Further Margin Expansion
MDC(")PARTNERS Excellent Potential for Further Margin Expansion $US Millions Adjusted MDC EBITDA 13.8% T 13.0% 7 14% | $61-se4y 12% 7 7 10% all $48 + 8% [6.0% 6% 1 $27 ° | | 4% $13 1 il + 2% + + 0% 2004 2005 2006 2007 + ©2008E sui6seW VOILE as &
Slide 13: 2008 Financial Outlook
2008 Financial Outlook * f Revenue MDC's Share of EBITDA Free Cash Flow
Slide 14: Summary
)PARTNERS B) q oe a Fal > MDC Partners is a proven accelerator of growth for its Partner firms Summary > Organic revenue growth has been outpacing the industry peer average for the last several years +> Margin expansion has lead to EBITDA growth at an even more rapid pace +> Free Cash Flow generatio
Slide 15: Forward Looking Statements & Other Information
MDC(K)PARTNERS Forward Looking Statements & Other Information 6 ‘This presentation 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 not historical facts, including statements
Slide 16: MDC Partners - Where Great Talent Lives
MDC (KX) PARTNERS Where Great Talent Lives BEAR STEARNS 21ST ANNUAL MEDIA CONFERENCE March 11, 2008 (Nasdaq: MDCA / TSX: MDZ.A)
MDC Partners — Bear Stearns 21st Annual Media Conference (March 2008) on 6ix