Slide 1: First Quarter 2015 Results
First Quarter 2015 Results April 21, 2015 Investor Presentation
Slide 2: 2015 vs. 2014 P&L Summary – First Quarter
2015 vs. 2014 P&L Summary – First Quarter First Quarter 2015 2014 Revenue $ 3,469.2 $ 3,502.2 (a) EBITA 405.0 407.1 Margin % 11.7% 11.6% Amortization of Intangibles 27.3 24.4 Operating Income $ 377.7 $ 382.7 Margin % 10.9% 10.9% (a) EBITA is a non-GAAP financial measure. See page 25 for the definiti
Slide 3: 2015 vs. 2014 P&L Summary – First Quarter
2015 vs. 2014 P&L Summary – First Quarter First Quarter 2015 2014 Operating Income $ 377.7 $ 382.7 Net Interest Expense 34.2 39.0 Income Taxes 112.7 116.3 Tax Rate % 32.8% 33.8% Income/(Loss) from Equity Method Investments (1.0) 0.6 Noncontrolling Interests 20.7 22.5 Net Income - Omnicom Group $ 209
Slide 4: 2015 vs. 2014 Earnings Per Share – First Quarter
2015 vs. 2014 Earnings Per Share – First Quarter First Quarter 2015 2014 Net Income - Omnicom Group $ 209.1 $ 205.5 Net Income allocated to Participating Securities (2.8) (4.1) Net Income available for common shares $ 206.3 $ 201.4 Diluted Shares (millions) 247.4 261.4 EPS - Diluted $ 0.83 $ 0.77 Di
Slide 5: 2015 Total Revenue Change – First Quarter
2015 Total Revenue Change – First Quarter -0.9% $(226) $179 $14 $3,502 $3,469 (6.4)% 0.4% 5.1% (a) (c) 1Q '14 FX Impact Net Organic 1Q '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 e
Slide 6: 2015 Revenue by Region
2015 Revenue by Region First Quarter Latin Africa America MidEast 2.4% 1.7% Asia Pacific % Organic 10.3% Growth (a) $ Mix % Growth Euro North America $ 2,067.2 3.9% 4.8% Markets & UK 346.5 2.4% 9.3% Other Europe Euro & Other Europe 554.8 -16.9% 2.7% 16.0% North Asia Pacific 356.8 -0.7% 6.7% America
Slide 7: 2015 Revenue by Discipline
2015 Revenue by Discipline First Quarter Specialty 7.5% PR 9.5% % Organic $ Mix % Growth Growth (a) Advertising $ 1,709.2 0.9% 7.7% CRM 1,169.5 -5.0% 2.6% Advertising 49.3% PR 330.9 1.7% 3.1% Specialty 259.6 2.7% 2.6% CRM 33.7% (a) “Organic Growth” reflects the year-over-year increase or decrease in
Slide 8: Revenue by Industry
Revenue by Industry First Quarter – 2015 First Quarter – 2014 T&E Auto T&E Auto 6% 8% 5% 8% Telcom Telcom 5% 6% Consumer Consumer Tech Products Tech Products 9% 10% 9% 10% Financial Financial Retail Services Retail Services 6% 7% 6% 7% Pharma & Food & Pharma & Food & Health Beverage Health Beverage
Slide 9: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2015 2014 Net Income $ 229.8 $ 228.0 Depreciation and Amortization Expense 74.2 70.9 Share-Based Compensation Expense 24.6 21.6 Other Non-Cash Items to Reconcile to Net Cash Used in Operating (7.1) (8.5) Activities, net Free Cash Flow (a) $ 321.5 $ 3
Slide 10: Cash Flow Performance
Cash Flow Performance Three Months Ended March 31 2015 2014 Free Cash Flow (a) $ 321.5 $ 312.0 Primary Uses of Cash: Dividends 126.2 105.9 Dividends paid to Noncontrolling Interest Shareholders 25.0 24.8 Capital Expenditures 38.2 42.5 Acquisition of Businesses and Affiliates, Acquisition of Addition
Slide 11: Current Credit Picture
Current Credit Picture Twelve Months Ended March 31 2015 2014 EBITDA (a) $ 2,236.8 $ 2,120.9 Gross Interest Expense 173.1 195.8 EBITDA / Gross Interest Expense 12.9 x 10.8 x Total Debt / EBITDA 2.1 x 1.9 x (b) Net Debt / EBITDA 1.4 x 0.9 x Debt Bank Loans (Due Less Than 1 Year) $ 10 $ 8 CP & Borrowi
Slide 12: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve Months Ended March 31, 2015 18.6% Twelve Months Ended March 31, 2014 16.9% Return on Equity (b): Twelve Months Ended March 31, 2015 36.3% Twelve Months Ended March 31, 2014 28.8% (a) Return on Invested Capital is After Tax Reported Op
Slide 13: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases From 2004 through March 31, 2015, Omnicom distributed over 100% of Net Income to shareholders through Dividends and Share Repurchases. 109% 108% 104% $10.0 $10.2 107% $10.0 $8.9 103% $7.9 $ In Billions $8.0 103% $6.9 92% $5.9
Slide 14: Supplemental Financial Information
Supplemental Financial Information April 21, 2015 13
Slide 15: 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 March 31, 2015. The amounts reflected above for the 2016, 2019, 2020, 2022 and 2024
Slide 16: 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 March 31, 2015 include short-term borrowings of $10 million which are due in less than one year. For purposes o
Slide 17: Historical Return Trends
Historical Return Trends Return on Equity Average through March 31, 2015 – 25.9% Return on Invested Capital Average through March 31, 2015 - 20.5% 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 2011 2012 2
Slide 18: 2015 Acquisition Related Expenditures
2015 Acquisition Related Expenditures Year to Date (a) Acquisition of Businesses and Affiliates $ 22.8 (b) Acquisition of Additional Noncontrolling Interests 3.1 (c) Contingent Purchase Price Payments 1.8 Total Acquisition Expenditures (d) $ 27.7 (a) Includes acquisitions of a majority interest in a
Slide 19: Condensed Cash Flow
Condensed Cash Flow Three Months Ended March 31 2015 2014 Net Income $ 229.8 $ 228.0 Share-Based Compensation Expense 24.6 21.6 Depreciation and Amortization 74.2 70.9 Other Non-Cash Items to Reconcile to Net Cash Used in Operating Activities, net (7.1) (8.5) Changes in Operating Capital (559.5) (74
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended March 31 Twelve Months Ended March 31 2015 2014 2015 2014 Revenue $ 3,469.2 $ 3,502.2 $ 15,284.8 $ 14,687.8 Operating Expenses, excluding Depreciation and Amortization 3,017.3 3,048.6 13,048.0 12,566.9 EBITDA 451.9 453.6 2,236.8 2,120.9 Deprecia
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended March 31 2015 2014 Net Free Cash Flow $ (155.6) $ 114.1 Cash Flow items excluded from Net Free Cash Flow: Changes in Operating Capital (559.5) (742.3) Proceeds from Short-term Debt, net 2.7 1.7 Other Financing Activities, net (9.0) (3.2) Effect
Slide 22: Supplemental Information
Supplemental Information First Quarter 2015 2014 %∆ Reported Reported Operating expenses: Salary and service costs $ 2,620.8 $ 2,622.8 -0.1% Office and general expenses: Amortization of Intangibles 27.3 24.4 Depreciation 46.9 46.5 Other office and general expenses 396.5 425.8 -6.9% Total office and
Slide 23: First Quarter Acquisitions
First Quarter Acquisitions Founded in 2008, Torben, Lucie und die gelbe Gefahr, or TLGG, is a leading German independent digital marketing agency specializing in digital transformation, specifically with respect to social media, social CRM/Big Data and digital content marketing. TLGG’s services are
Slide 24: First Quarter Acquisitions
First Quarter Acquisitions Founded in 2008, Trakken Web Services provides specialized web analytics and conversion rate optimization services to an array of clients across multiple industries. Trakken’s consulting services provide clients actionable insights to improve the efficiency of their online
Slide 25: First Quarter Acquisitions
First Quarter Acquisitions Mercury Public Affairs has acquired a controlling interest in its non-equity affiliate Mercury New Jersey (“MNJ”), a government consultancy agency. MNJ provides strategic consulting services for corporate, non-profit, trade and advocacy groups, focusing on issues impacting
Slide 26: Disclosure
Disclosure The preceding materials have been prepared for use in the April 21, 2015 conference call on Omnicom’s results of operations for the period ended March 31, 2015. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain s