Omnicom Group Inc. · NYSE:OMC
Omnicom — 2007 Analyst Presentation
16 slides from Omnicom's conference presentation, Mar 5, 2007
Slide 1: 2007 Analyst Presentation
OmnicomGroup 2007 Analyst Presentation March 2007
Slide 2: Forward-Looking Statements / Other Information
The following materials have been prepared for use in various analysts’ conferences during the first quarter of 2007. 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. These
Slide 3: Who We Are
Who We Are The World’s Leading Advertising and Marketing Communications Services Group 2
Slide 4: Omnicom Group: Disciplines, Platforms and Agencies
OmnicomGroup Specialty Traditional Customer Relationship Public Media Advertising Management Relations Communications 30+ Advertising & Marketing Disciplines 150+ Strategic Brand Platforms 1500+ Individual Agencies 3
Slide 5: Omnicom's Balance and Diversity
Omnicom’s Balance and Diversity Diversified Service Offering Broad Client Base 150+ strategic platforms 5,000+ clients 1,500+ individual agencies Top client = 3.6% of total revenue and was served by over 100 of Leadership positions in 30+ our agencies marketing disciplines No other client > 2.9% Str
Slide 6: Long-Term Trends
Long-Term Trends Client-Specific Trends Industry-Specific Trends Desire to manage brands Continued industry consolidation on a pan-regional or global basis, Creation of pan-regional and with an increased focus on Asia global Marketing Services Reduction in service partners Networks Greater coordinat
Slide 7: Factors Impacting 2007
Factors Impacting 2007 Clients shifting focus back to top-line growth Steady state of new business activity with expected increase in second half – US elections and 2008 Olympics Shift in media spending Corporate merger activity continuing Economic climate similar to 2006 Maintain focus on acquisiti
Slide 8: Objectives
Objectives Maintain the leadership positions of our brands Achieve reported double digit Revenue and EPS growth Optimize our operating margins while maintaining a high level of investment in our people and businesses Use free cash flow to enhance shareholder value Make selective accretive acquisitio
Slide 9: OmnicomGroup
OmnicomGroup alelelalalelalaleli jeluimlelainjalelale 4 1 f OmnicomGroup
Slide 10: Financial Review
Financial Review 7000006 OmnicomGroup
Slide 11: 2006 vs. 2005 P&L Summary
2006 vs. 2005 P&L Summary Full Year 2006 2005 % Change Revenue $ 11,376.9 $ 10,481.1 8.5% Operating Income 1,483.5 1,339.8 10.7% % Margin 13.0% 12.8% Net Interest Expense 91.6 59.2 Profit Before Tax 1,391.9 1,280.6 8.7% % Margin 12.2% 12.2% Taxes 466.9 435.3 % Tax Rate 33.5% 34.0% Profit After Tax 9
Slide 12: 2006 Revenue Growth
2006 Revenue Growth Total Company United States International $ % $ % $ % Prior Period Revenue $ 10,481.1 $ 5,743.9 $ 4,737.2 Organic Revenue (a) 797.6 7.6% 415.5 7.2% 382.1 8.1% Acquisition Revenue (b) 25.9 0.2% 34.6 0.6% (8.7) -0.2% Foreign Exchange (FX) Impact (c) 72.3 0.7% N/A N/A 72.3 1.5% Curr
Slide 13: 2006 Revenue Mix
2006 Revenue Mix By Discipline By Geography PR 10.1% Euro Markets CRM 20.3% United Advertising 35.9% States UK 42.8% 54.4% 10.8% Other Specialty 14.5% 11.2% $ Mix % Growth(a) $ Mix % Growth(a) Advertising 4,866.4 6.0% United States 6,194.0 7.8% CRM 4,081.4 13.0% Euro Markets 2,313.5 7.3% PR 1,150.1
Slide 14: Financial Performance
Financial Performance(a) Revenue Operating Income 2006 $11,377 2006 $1,484 2005 $10,481 2005 $1,340 Growth 8.5% Growth 10.7% Net Income Earnings Per Share 2006 $864 2006 $4.99 2005 $791 2005 $4.36 Growth 9.3% Growth 14.4% (a) 2001 results are adjusted to assume that the cessation of goodwill amortiz
Slide 15: 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 16: OmnicomGroup
OmnicomGroup alelelalalelalaleli jeluimlelainjalelale 4 1 f OmnicomGroup