Slide 1: Third Quarter 2015 Results
Third Quarter 2015 Results October 20, 2015 Investor Presentation
Slide 2: 2015 vs. 2014 P&L Summary – Third Quarter
2015 vs. 2014 P&L Summary – Third Quarter Third Quarter 2015 2014 Revenue $ 3,706.6 $ 3,749.6 EBITA (a) 454.7 460.5 Margin % 12.3% 12.3% Amortization of Intangibles 26.4 26.9 Operating Income $ 428.3 $ 433.6 Margin % 11.6% 11.6% (a) EBITA is a non-GAAP financial measure. See page 30 for the definiti
Slide 3: 2015 vs. 2014 P&L Summary – Third Quarter
2015 vs. 2014 P&L Summary – Third Quarter Third Quarter 2015 2014 Operating Income $ 428.3 $ 433.6 Net Interest Expense 35.9 31.4 Income Taxes 128.9 134.4 Tax Rate % 32.8% 33.4% Income from Equity Method Investments 3.2 5.8 Noncontrolling Interests 27.4 29.8 Net Income - Omnicom Group 239.3 243.8 Oc
Slide 4: 2015 vs. 2014 Earnings Per Share – Third Quarter
2015 vs. 2014 Earnings Per Share – Third Quarter Third Quarter 2015 2014 Net Income - Omnicom Group $ 239.3 $ 243.8 Net Income allocated to Participating Securities (2.5) (4.3) Net Income available for common shares $ 236.8 $ 239.5 Diluted Shares (millions) 244.4 252.4 EPS - Diluted $ 0.97 $ 0.95 Di
Slide 5: 2015 vs. 2014 P&L Summary – Year to Date
2015 vs. 2014 P&L Summary – Year to Date Year to Date 2015 Reported 2014 Reported Revenue $ 10,981.1 $ 11,122.7 EBITA (a) 1,425.4 1,441.8 Margin % 13.0% 13.0% Amortization of Intangibles 80.8 77.1 Operating Income $ 1,344.6 $ 1,364.7 Margin % 12.2% 12.3% (a) EBITA is a non-GAAP financial measure. Se
Slide 6: 2015 vs. 2014 P&L Summary – Year to Date
2015 vs. 2014 P&L Summary – Year to Date Year to Date 2015 2014 2014 Exclude Reported Reported Tax Benefit (a) Operating Income $ 1,344.6 $ 1,364.7 $ 1,364.7 Net Interest Expense 104.7 104.1 104.1 Income Taxes 406.9 410.9 422.1 (b) Tax Rate % 32.8% 32.6% 33.5% (b) Income from Equity Method Investmen
Slide 7: 2015 vs. 2014 Earnings Per Share – Year to Date
2015 vs. 2014 Earnings Per Share – Year to Date Year to Date 2015 2014 2014 Exclude (a) Reported Reported Tax Benefit Net Income - Omnicom Group $ 762.3 $ 774.5 $ 763.3 (b) Net Income allocated to Participating Securities (9.0) (14.7) (14.5) Net Income available for common shares $ 753.3 $ 759.8 $ 7
Slide 8: Total Revenue Change – Third Quarter
2015 Total Revenue Change – Third Quarter $(272) $228 $3,750 $3,707 $1 (7.2)% 0.0% 6.1% (a) (c) 3Q '14 FX Impact Net Organic 3Q '15 (b) Acquisitions Revenue (a) To calculate the FX impact, we first convert the current period’s local currency revenue using the average exchange rates from the equivale
Slide 9: Total Revenue Change – Year to Date
2015 Total Revenue Change – Year to Date $(773) $11,123 $611 $10,981 $20 (7.0)% 0.2% 5.5% (a) (c) YTD '14 FX Impact Net Organic YTD '15 (b) Acquisitions Revenue (a) To calculate the FX impact, we first convert the current period’s local currency revenue using the average exchange rates from the equi
Slide 10: Revenue by Region
2015 Revenue by Region Third Quarter Year to Date Latin Africa Latin Africa America MidEast America MidEast 1.9% 1.6% 2.1% 1.7% Asia Asia Pacific Pacific 10.4% 10.4% Euro Euro Markets & Markets & Other Other Europe Europe 15.6% 15.9% North North UK America UK America 10.5% 60.0% 10.1% 59.8% October
Slide 11: Revenue by Region
2015 Revenue by Region Third Quarter Year to Date % Organic % Organic (a) (a) $ Mix % Growth Growth $ Mix % Growth Growth North America $ 2,221.7 4.8% 6.3% North America $ 6,570.4 4.5% 5.7% UK 388.2 1.5% 9.1% UK 1,106.8 0.2% 7.9% Euro & Other Europe 579.2 -14.0% 4.5% Euro & Other Europe 1,740.8 -15.
Slide 12: Revenue by Discipline
2015 Revenue by Discipline Third Quarter Year to Date Specialty Specialty 6.9% 7.3% PR PR 9.1% 9.3% Advertising Advertising 50.8% 50.2% CRM CRM 33.2% 33.2% % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) Advertising $ 1,882.1 1.6% 9.9% Advertising $ 5,513.4 0.4% 8.0% CRM 1,23
Slide 13: Revenue by Industry
Revenue by Industry Year to Date – 2015 Year to Date – 2014 T&E Auto T&E Auto 6% 8% 6% 8% Telcom Telcom 5% 5% Consumer Consumer Tech Products Tech Products 9% 10% 9% 10% Financial Financial Retail Services Services 7% Retail 7% 6% 7% Pharma & Food & Food & Pharma & Health Beverage Beverage Health 11
Slide 14: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30 2015 2014 Net Income $ 839.2 $ 860.1 Depreciation and Amortization Expense 218.7 217.4 Share-Based Compensation Expense 75.4 69.5 Other Non-Cash Items to Reconcile to Net Cash Used in Operating (21.7) (22.0) Activities, net Free Cash Flow (a) $ 1,
Slide 15: Cash Flow Performance
Cash Flow Performance Nine Months Ended September 30 2015 2014 Free Cash Flow (a) $ 1,111.6 $ 1,125.0 Primary Uses of Cash: Dividends 373.9 340.7 Dividends paid to Noncontrolling Interest Shareholders 86.7 83.2 Capital Expenditures 145.6 138.3 Acquisition of Businesses and Affiliates, Acquisition of
Slide 16: Current Credit Picture
Current Credit Picture Twelve Months Ended September 30 2015 2014 EBITDA (a) $ 2,219.8 $ 2,205.2 Gross Interest Expense 175.8 183.8 EBITDA / Gross Interest Expense 12.6 x 12.0 x Total Debt / EBITDA 2.1 x 1.7 x Net Debt (b) / EBITDA 1.4 x 1.3 x Debt Bank Loans (Due Less Than 1 Year) $ 10 $ 32 CP & Bo
Slide 17: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve Months Ended September 30, 2015 17.9% Twelve Months Ended September 30, 2014 17.2% Return on Equity (b): Twelve Months Ended September 30, 2015 39.6% Twelve Months Ended September 30, 2014 33.7% (a) Return on Invested Capital is After
Slide 18: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases Over the period 2004 through September 30, 2015, Omnicom distributed over 100% of Net Income to shareholders through Dividends and Share Repurchases. 107% 108% $12.0 $10.8 104% $10.0 107% $10.0 $8.9 $ In Billions 103% $7.9 103
Slide 19: Supplemental Financial Information
Supplemental Financial Information October 20, 2015 18
Slide 20: Omnicom Debt Structure
Omnicom Debt Structure Bank Loans $10 2024 Senior Notes $750 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 September 30, 2015. The amounts reflected above for the 2016, 2019, 2020, 2022 and 2
Slide 21: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2022 Senior Notes $1,250 2016 2020 Senior Senior Notes Notes $1,000 2024 Senior Notes $750 2019 Senior Notes $500 $250 Other Borrowings $0 Other borrowings at September 30, 2015 include short-term borrowings of $10 million which are due in less than one year. For purpos
Slide 22: Historical Return Trends
Historical Return Trends Return on Equity Average through September 30, 2015 – 26.1% Return on Invested Capital Average through September 30, 2015 – 20.4% ROE(a) 40.0% ROIC(b) 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201
Slide 23: Acquisition Related Expenditures
2015 Acquisition Related Expenditures Year to Date (a) Acquisition of Businesses and Affiliates $ 36.2 (b) Acquisition of Additional Noncontrolling Interests 7.7 (c) Contingent Purchase Price Payments 55.6 Total Acquisition Expenditures (d) $ 99.5 (a) Includes acquisitions of a majority interest in
Slide 24: Condensed Cash Flow
Condensed Cash Flow Nine Months Ended September 30 2015 2014 Net Income $ 839.2 $ 860.1 Share-Based Compensation Expense 75.4 69.5 Depreciation and Amortization 218.7 217.4 Other Non-Cash Items to Reconcile to Net Cash Used in Operating Activities, net (21.7) (22.0) Changes in Operating Capital (670
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 3 Months Ended September 30 9 Months Ended September 30 12 Months Ended September 30 2015 2014 2015 2014 2015 2014 Revenue $ 3,706.6 $ 3,749.6 $ 10,981.1 $ 11,122.7 $ 15,176.2 $ 15,180.9 Operating Expenses, excluding Depreciation and 3,206.5 3,241.9 9,417.8 9,540.
Slide 26: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Nine Months Ended September 30 Merger-related 2014 Exclude 2014 Reported Tax Benefit Tax Benefit EBITA $ 1,441.8 $ - $ 1,441.8 Operating Income 1,364.7 - 1,364.7 Income Tax Expense 410.9 11.2 422.1 Net Income - Omnicom Group Inc. 774.5 11.2 763.3 Net Income alloca
Slide 27: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Nine Months Ended September 30 2015 2014 Net Free Cash Flow $ (54.7) $ (422.5) Cash Flow items excluded from Net Free Cash Flow: Changes in Operating Capital (670.8) (1,091.9) Repayment of Convertible Debt - (252.7) Proceeds from Short-term & Long-term Debt, net 3
Slide 28: Supplemental Information
Supplemental Information Third Quarter Year to Date % of % of % of % of 2015 Rev 2014 Rev 2015 Rev 2014 Rev Revenue $ 3,706.6 $ 3,749.6 $ 10,981.1 $ 11,122.7 Operating expenses: Salary and service costs $ 2,832.6 76.4% $ 2,813.2 75.0% $ 8,243.1 75.1% $ 8,230.7 74.0% Office and general expenses: Amor
Slide 29: Third Quarter Acquisition
Third Quarter Acquisition Established in 2006, Cortex is a leading healthcare communication agency providing services to the pharmaceutical and nutrition industries and healthcare providers. The agency’s main areas of focus include creative brand and disease awareness campaigns, medical services (co
Slide 30: Third Quarter Acquisition
Third Quarter Acquisition Founded in 2007, RE-MIND is the largest independent digital media agency in France, offering strategic consulting and cross-channel media marketing expertise to its clients. DataOnDemand, founded in 2012, is focused on the CRM market, developing custom cross-channel direct
Slide 31: Disclosure
Disclosure The preceding materials have been prepared for use in the October 20, 2015 conference call on Omnicom’s results of operations for the period ended September 30, 2015. The call will be archived on the Internet at http://investor.omnicomgroup.com/investor-relations/news-events-and-filings.