Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2013 Earnings Presentation
20 slides from Omnicom's earnings presentation, Apr 18, 2013
Slide 1: First Quarter 2013 Results
First Quarter 2013 Results April 18, 2013 Investor Presentation
Slide 2: 2013 vs. 2012 P&L Summary
2013 vs. 2012 P&L Summary First Quarter 2013 2012 % Revenue $ 3,398.9 $ 3,307.3 2.8% EBITA (a) 397.1 386.5 2.7% % Margin 11.7% 11.7% Amortization of Intangibles 25.4 24.0 Operating Income $ 371.7 $ 362.5 2.5% % Margin 10.9% 11.0% (a) EBITA is a non-GAAP financial measure. See page 20 for the definit
Slide 3: 2013 vs. 2012 P&L Summary
2013 vs. 2012 P&L Summary First Quarter 2013 2012 % Operating Income $ 371.7 $ 362.5 2.5% % Margin 10.9% 11.0% Net Interest Expense 40.9 29.2 Income Taxes 109.2 109.3 % Tax Rate 33.0% 32.8% Income from Equity Method Investments 3.2 2.0 Noncontrolling Interests 19.7 21.4 Net Income - Omnicom Group $
Slide 4: 2013 vs. 2012 Net Income and Earnings Per Share
2013 vs. 2012 Net Income and Earnings Per Share First Quarter 2013 2012 Net Income - Omnicom Group $ 205.1 $ 204.6 Net Income - Participating Securities (5.4) (4.5) Net Income Available for Common Shares $ 199.7 $ 200.1 Diluted Shares (millions) 263.2 277.5 EPS - Diluted $ 0.76 $ 0.72 Dividend Decla
Slide 5: Total Revenue Change
2013 Total Revenue Change First Quarter $% Prior Period Revenue $ 3,307.3 Foreign Exchange (FX) Impact (a) (19.5) -0.6% Acquisition/Disposition Revenue (b) 15.4 0.5% Organic Revenue (c) 95.7 2.9% Current Period Revenue $ 3,398.9 2.8% (a) To calculate the FX impact, we first convert the current perio
Slide 6: Revenue by Discipline
2013 Revenue by Discipline First Quarter Specialty 7.5% PR 9.4% % Organic $ Mix % Growth Growth (a) Advertising $ 1,651.9 5.7% 6.1% CRM 1,172.7 -1.3% -0.6% Advertising 48.6% PR 318.4 3.7% 1.9% Specialty 255.9 2.9% 1.0% CRM 34.5% (a) “Organic Growth” reflects the year-over-year increase or decrease i
Slide 7: Revenue by Geography
2013 Revenue by Geography First Quarter $ Mix $ Growth UK United States $ 1,791.6 $ 72.3 8.9% Organic 70.1 Rest of Acquisition 2.2 World International $ 1,607.3 $ 19.3 22.8% Organic 25.6 Acquisition 13.2 FX (19.5) Euro % Organic Markets (a) $ Mix % Growth Growth 15.6% U.S. United States $ 1,791.6 4.
Slide 8: Revenue by Industry
Revenue by Industry First Quarter – 2013 First Quarter – 2012 Growth T&E Auto T&E Auto Auto -0.1% 6% 8% 6% 8% Telcom Telcom 7% 7% Consumer Food & Beverage 1.8% Consumer Products Products 9% Consumer Products 12.2% Tech 10% Tech 9% 9% Financial Financial Services -5.4% Financial Services Services 9%
Slide 9: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2013 2012 Net Income $ 224.8 $ 226.0 Depreciation and Amortization Expense 71.1 69.3 Share-Based Compensation Expense 22.1 26.3 Other Non-Cash Items to Reconcile to Net Cash Used in Operating (15.9) (11.1) Activities, net Free Cash Flow (a) $ 302.1 $
Slide 10: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2013 2012 Free Cash Flow (a) $ 302.1 $ 310.5 Primary Uses of Cash: Dividends (b) - 69.8 Dividends paid to Noncontrolling Interest Shareholders 23.0 23.0 Capital Expenditures 38.2 45.6 Acquisitions and Payments for Additional Interest in Controlled Su
Slide 11: Current Credit Picture
Current Credit Picture Twelve Months Ended March 31 2013 2012 EBITDA (a) $ 2,097.9 $ 1,989.3 Gross Interest Expense 190.2 154.7 EBITDA / Gross Interest Expense 11.0 x 12.9 x Total Debt / EBITDA 2.1 x 1.6 x Net Debt (b) / EBITDA 1.1 x 0.8 x Debt Bank Loans (Due Less Than 1 Year) $12 $ 12 CP & Borrowi
Slide 12: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve Months Ended March 31, 2013 17.7% Twelve Months Ended March 31, 2012 16.9% Return on Equity (b) : Twelve Months Ended March 31, 2013 29.6% Twelve Months Ended March 31, 2012 26.9% (a) Return on Invested Capital is After Tax Operating
Slide 13: 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 Q1 2013, Omnicom distributed 100% of Net Income to shareholders through Dividends and Share Repurchases . 10.0 $9.30 9.0 8.0 7.0 $7.04 Billions 6
Slide 14: Supplemental Financial Information
Supplemental Financial Information April 18, 2013 13
Slide 15: Omnicom Debt Structure
Omnicom Debt Structure Bank Loans $12 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 March 31, 2013. The amounts reflected above for the 2016, 2019, 2020 an
Slide 16: 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 2038 Convert 2032 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 17: Acquisition Related Expenditures
2013 Acquisition Related Expenditures First Quarter Acquisitions of Businesses and Affiliates (a) $ - Additional Interest in Controlled Subsidiaries (b) 5.6 Earn -outs on acquisitions completed prior to January 1, 2009 (c) 0.9 Earn -outs on acquisitions completed after January 1, 2009 (c) 13.5 Total
Slide 18: Condensed Cash Flow
Condensed Cash Flow Three Months Ended March 31 2013 2012 Net Income $ 224.8 $ 226.0 Share-Based Compensation Expense 22.1 26.3 Depreciation and Amortization 71.1 69.3 Other Non-Cash Items to Reconcile to Net Cash Used in Operating Activities, net (15.9) (11.1) Changes in Operating Capital (511.8) (
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures First Quarter 12 Months Ended March 31 2013 2012 2013 2012 Revenue $ 3,398.9 $ 3,307.3 $ 14,311.1 $ 14,028.4 Operating Expenses, excluding Depreciation and Amortization 2,956.1 2,875.5 12,213.2 12,039.1 EBITDA 442.8 431.8 2,097.9 1,989.3 Depreciation 45.7 45.3 182
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended March 31 2013 2012 Net Free Cash Flow $ (14.7) $ 4.9 Cash Flow items excluded from Net Free Cash Flow: Changes in Operating Capital (511.8) (311.0) Proceeds from Short-term Debt 5.4 1.9 Other Financing Activities, net (9.3) (5.8) Effect of excha