Omnicom Group Inc. · NYSE:OMC
Omnicom — Q4 2021 Earnings Presentation
21 slides from Omnicom's earnings presentation, Feb 8, 2022
Slide 1: 2021 Fourth Quarter & Full Year
2021 Fourth Quarter & Full Year February 8, 2022
Slide 2: Fourth Quarter Highlights
Fourth Quarter Highlights Revenue strength Profitable growth – Revenue growth 2.6% reported, 9.5% organic – Operating profit up 1.3%, margin 16.1% on total revenue – Growth across all disciplines and geographies – Net income per diluted share of $1.95, up 6.0% – Strong 19.6% organic growth in Precis
Slide 3: Income Statement Summary
Income Statement Summary Fourth Quarter Full Year 2021 2020 2021(b) 2020 (c) Revenue $ 3,855.9 $ 3,757.0 $ 14,289.4 $ 13,171.1 Operating Expenses (a) 3,233.4 3,142.3 12,091.5 11,572.3 Operating Profit 622.5 614.7 2,197.9 1,598.8 Operating Profit Margin % 16.1 % 16.4 % 15.4 % 12.1 % Net Interest Expe
Slide 4: Revenue Change
Revenue Change Fourth Quarter Full Year $ %∆ $ %∆ Prior Period Revenue $ 3,757.0 $ 13,171.1 Foreign exchange rate impact (a) (10.1) (0.3)% 288.2 2.2 % Acquisition revenue, net of disposition revenue (b) (248.9) (6.6)% (516.5) (3.9)% Organic growth (c) 357.9 9.5 % 1,346.6 10.2 % Current Period Revenu
Slide 5: Revenue by Discipline
Revenue by Discipline % Organic % Organic Fourth Quarter Revenue % of Rev % Growth Growth (a) Full Year $ Mix % of Rev % Growth Growth (a) Advertising $ 2,120.5 55.0 % (4.5)% 7.4 % Advertising $ 7,959.3 55.7 % 6.0 % 10.7 % Precision Marketing 322.3 8.4 % 23.3 % 19.6 % Precision Marketing 1,194.8 8.4
Slide 6: Revenue by Region
Revenue by Region % Organic % Organic Fourth Quarter $ Mix % of Rev % Growth Growth (a) Full Year $ Mix % of Rev % Growth Growth (a) United States $ 1,831.9 47.5 % (5.6)% 7.8 % United States $ 7,245.9 50.7 % 0.8 % 8.1 % Other North America 126.1 3.3 % 5.3 % 1.8 % Other North America 463.8 3.2 % 18.6
Slide 7: Revenue by Industry Sector
Revenue by Industry Sector Full Year 2021 2020 Pharmaceuticals and Healthcare 15 % 16 % Food and Beverage 14 % 14 % Technology 11 % 9% Auto 10 % 10 % Consumer Products 8% 8% Financial Services 7% 8% Retail 7% 7% Travel and Entertainment 7% 7% Telecommunications 5% 6% Government 3% 3% Services 2% 2%
Slide 8: Operating Expense Detail
Operating Expense Detail Fourth Quarter Full Year 2021 % of Rev 2020(a) % of Rev 2021(b) % of Rev 2020(a)(b) % of Rev Revenue $ 3,855.9 $ 3,757.0 $ 14,289.4 $ 13,171.1 Operating expenses: Salary and related service costs 1,869.8 48.5 % 1,682.6 44.8 % 6,971.0 48.8 % 6,250.9 47.5 % Third-party service
Slide 9: EBITA & Margins
EBITA & Margins Fourth Quarter Full Year 2021 2020 2021 2020 Revenue $ 3,855.9 $ 3,757.0 $ 14,289.4 $ 13,171.1 Operating expenses (a) 3,233.4 3,142.3 12,091.5 11,572.3 Operating Profit 622.5 614.7 2,197.9 1,598.8 Operating Profit Margin % 16.1 % 16.4 % 15.4 % 12.1 % Add back: Amortization of intangi
Slide 10: Cash Flow Performance
Cash Flow Performance Full Year 2021 2020 Free Cash Flow (a) $ 1,784.9 $ 1,693.7 Primary Uses of Cash: Dividends paid to Common Shareholders 592.3 562.7 Dividends paid to Noncontrolling Interest Shareholders 113.1 95.5 Capital Expenditures(b) 665.8 75.4 Acquisition payments, including payment of con
Slide 11: Credit & Liquidity
Credit & Liquidity $ Millions Full Year 2021 2020 EBITDA (a) $ 2,410.0 $ 1,821.4 Total Debt / EBITDA 2.4 x 3.2 x Net Debt (b) / EBITDA 0.2 x 0.1 x Debt Bank Loans (Due Less Than 1 Year) $ 9.6 $ 3.9 CP & Borrowings Issued Under Revolver — — USD-denominated Senior Notes 4,150.0 4,600.0 EUR-denominated
Slide 12: Historical Returns
Historical Returns Return on Invested Capital (ROIC)(a) Return on Equity(b) Twelve months ended December 31, 2021 33.4 % Twelve months ended December 31, 2021 44.3 % Twelve months ended December 31, 2020 23.0 % Twelve months ended December 31, 2020 31.8 % (a) Return on Invested Capital is After Tax
Slide 13: Appendix
Appendix 13
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended December 31 December 31 2021 2020 2021 2020 Net Income - Omnicom Group Inc. $ 416.2 $ 398.1 $ 1,407.8 $ 945.4 Net Income Attributed to Noncontrolling Interests 33.7 30.4 99.8 75.4 Net Income 449.9 428.5 1,507.6 1,020.8 Income (Loss) Fro
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Full Year 2021 2020 Net Cash Provided by Operating Activities $ 1,945.4 $ 1,724.6 Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital 160.5 30.9 Free Cash Flow $ 1,784.9 $ 1,693.7 Full Year 2021 2020 Net Increase (Decrease) in Cash and Cash
Slide 16: Free Cash Flow
Free Cash Flow Full Year 2021 2020 Net Income $ 1,507.6 $ 1,020.8 Depreciation and Amortization of Intangible Assets 212.1 222.6 Share-Based Compensation 84.7 70.8 Gain on disposition of subsidiary (50.5) — COVID-19 Repositioning Costs — 277.9 Other Items to Reconcile to Net Cash Used in Operating A
Slide 17: Operating Expense Detail - Constant $
Operating Expense Detail - Constant $ Fourth Quarter Full Year (b) 2021 2021 C$(a) 2020 2021 2021 C$(a) 2020(b)(c) Operating expenses: Salary and related service costs $ 1,869.8 $ 1,874.4 $ 1,682.6 $ 6,971.0 $ 6,824.0 $ 6,250.9 Third-party service costs (d) 922.3 921.3 1,038.6 3,431.0 3,365.2 3,321.
Slide 18: Acquisition: Jump 450 Media
Acquisition: Jump 450 Media • October 2021 • Jump is a performance media agency and is part of Omnicom Media Group • Jump optimizes digital media spend and drives customer acquisition for high-growth and enterprise clients by leveraging algorithmic scaling strategies, rapid creative testing, and rob
Slide 19: Acquisition: BrightGen
Acquisition: BrightGen • November 2021 • BrightGen is an award-winning, innovative digital business transformation specialist with end-to-end Salesforce strategy, consulting, delivery and service offerings for enterprises • Adds a cornerstone Salesforce offering to our martech consulting capabilitie
Slide 20: OMC Marketing & Communications Services Portfolio
OMC Marketing & Communications Services Portfolio Note: For more information regarding companies within each of our disciplines, please visit www.omnicomgroup.com 20
Slide 21: Disclosures
Disclosures The preceding materials have been prepared for use in the February 8, 2022 conference call on Omnicom’s results of operations for the three and twelve months ended December 31, 2021. The call will be archived on the Internet at http:// investor.omnicomgroup.com/investor-relations/news-ev