Omnicom Group Inc. · NYSE:OMC
Omnicom — Conference Presentation (February 2006)
15 slides from Omnicom's conference presentation, Feb 27, 2006
Slide 1: Omnicom Group 2006 Analyst Presentation
OmnicomGroup 2006 Analyst Presentation February 2006 Exhibit 99.1
Slide 2: Forward-Looking Statements
The following materials have been prepared for use in various analysts’ conferences during the first quarter of 2006. Forward-Looking Statements Certain of the statements in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 . Thes
Slide 3: Who We Are
Who We Are The World’s Leading Advertising and Marketing Communications Services Group
Slide 4: Omnicom Group disciplines and agencies
OmnicomGroup Traditional Media Advertising Customer Relationship Management Public Relations Specialty Communications 30+ Advertising & Marketing Disciplines 150+ Strategic Brand Platforms 1500+ Individual Agencies
Slide 5: Industry-Specific Trends
Industry-Specific Trends Industry consolidation Creation of pan-regional and global Marketing Services Networks Media fragmentation… increased interactive initiatives Integration of Interactive and Traditional Creative approaches to clients needs Long-Term Trends Client-Specific Trends Desire to man
Slide 6: Factors Impacting 2006
Factors Impacting 2006 Clients shifting focus back to top-line growth Increase in new business activity Shift in media spending Corporate merger activity picking up Economic climate improved Maintain focus on internal systems and cost savings initiatives
Slide 7: Objectives
Objectives Maintain the leadership positions of our brands Achieve double digit Revenue and EPS growth Improve our operating margins Use free cash flow to enhance shareholder value Make selective accretive acquisitions that allow us to further extend our strategic advantages in non-traditional adver
Slide 8: Omnicom Group
Omnicom Group
Slide 9: Financial Review
Financial Review
Slide 10: 2005 vs. 2004 P&L Summary
2005 vs. 2004 P&L Summary % Change Revenue 10,481.1 $ 9,747.2 $ 7.5% Operating Income 1,339.8 1,215.4 10.2% % Margin 12.8% 12.5% Net Interest Expense 59.2 36.6 Profit Before Tax 1,280.6 1,178.8 8.6% % Margin 12.2% 12.1% Taxes 435.3 396.3 % Tax Rate 34.0% 33.6% Profit After Tax 845.3 782.5 8.0% Equit
Slide 11: 2005 Revenue Growth
2005 Revenue Growth (a) Organic revenue is calculated by subtracting both the acquisition revenue and the FX impact from total revenue growth. (b) Acquisition revenue is the aggregate of the applicable prior period revenue of the acquired businesses. Netted against this number is the revenue of any
Slide 12: 2005 Revenue Mix
Advertising 43.8% PR 10.0% CRM 34.5% Specialty 11.7% United States 54.8% Euro Markets 20.6% UK 10.5% Other 14.1% 2005 Revenue Mix By Discipline By Geography Advertising CRM PR Specialty 4,589.0 3,613.0 1,045.7 1,233.4 9.1% 6.8% 2.1% 8.9% $ Mix % Growth (a) United States Euro Markets United Kingdom O
Slide 13: Financial Objectives
Financial Objectives Consistent industry leading long-term financial performance Maximize operating efficiency Maximize investments in People, Technology and Developing Markets (Both Emerging Regions & Emerging Disciplines) Make selective acquisitions to accelerate and supplement our internal develo
Slide 14: Financial Performance
Revenue Operating Income Net Income Earnings Per Share (a) 2001 results are adjusted to assume that the cessation of goodwill amortization occurred on January 1, 2001. All periods presented, beginning with 1995, include the effect of the adoption of Statement of Financial Accounting Standards No. 12
Slide 15: Omnicom Group
Omnicom Group
Omnicom Group — Conference Presentation (February 2006) on 6ix