Omnicom Group Inc. · NYSE:OMC
Omnicom — Q3 2009 Earnings Presentation
22 slides from Omnicom's earnings presentation, Oct 21, 2009
Slide 1: Investor Presentation Third Quarter 2009 Results
Exhibit 99.2 Investor Presentation Third Quarter 2009 Results October 21, 2009
Slide 2: Disclosure
Disclosure The following materials have been prepared for use in the October 21, 2009 conference call on Omnicom’s results of operations for the period ended September 30, 2009. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Cer
Slide 3: 2009 vs. 2008 P&L Summary
2009 vs. 2008 P&L Summary Third Quarter Year to Date 2009 2008 % 2009 2008 % Revenue $ 2,837.6 $ 3,316.2 -14.4% $ 8,454.9 $ 9,988.5 -15.4% Operating Income (a) 294.8 373.4 -21.0% 975.3 1,241.0 -21.4% % Margin 10.4% 11.3% 11.5% 12.4% Net Interest Expense 28.9 20.7 72.1 50.4 Income Before Tax 265.9 35
Slide 4: 2009 Total Revenue Change
2009 Total Revenue Change Third Quarter Year to Date $ % $ Prior Period Revenue $ 3,316.2 $ 9,988.5 Foreign Exchange (FX) Impact (a) (97.8) -2.9% (584.8) -5.9% Acquisition Revenue (b) (25.4) -0.8% (5.7) -0.1% Organic Revenue (c) (355.4) -10.7% (943.1) -9.4% Current Period Revenue $ 2,837.6 -14.4% $
Slide 5: 2009 Revenue by Discipline
2009 Revenue by Discipline % Organic % Organic $ Mix % Change (a) $ Mix % Change (a) Change (b) Change (b) Advertising $ 1,231.6 -11.6% -8.4% Advertising $ 3,727.7 -13.5% -7.1% CRM 1,083.1 -16.2% -13.6% CRM 3,143.7 -16.1% -10.8% PR 266.2 -14.9% -11.3% PR 798.0 -16.7% -11.0% Specialty 256.7 -19.3% -8
Slide 6: 2009 Revenue By Geography
2009 Revenue By Geography $ Mix $ Change (a) $ Mix $ Change (a) United States $ 1,491.2 $ (226.8) United States $ 4,548.0 $ (582.5) Organic (198.0) Organic (564.0) Acquisition (28.8) Acquisition (18.5) International $ 1,346.4 $ (251.8) International $ 3,906.9 $ (951.1) Organic (157.4) Organic (379.1
Slide 7: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 9 Months ended September 30, 2009 2008 Net Income $ 614.8 $ 816.0 Share-Based Compensation Expense 56.7 44.3 Depreciation and Amortization 173.8 176.2 Other Non-Cash Items to Reconcile to Net Cash Provided by (Used in) Operating Activities, net 4.9 (12.9) Ot
Slide 8: Current Credit Picture
Current Credit Picture 12 Months ended September 30, 2009 2008 EBITDA (a) $ 1,657 $ 2,007 Gross Interest Expense (a) 120.7 115.2 EBITDA / Gross Interest Expense 13.7 x 17.4 x Total Debt / EBITDA 1.5 x 1.6 x Debt Bank Loans (Due Less Than 1 Year) $ 33 $ 64 CP Issued Under $2.5B Revolver Due 6/23/11 1
Slide 9: Current Liquidity Picture
Current Liquidity Picture As of September 30, 2009 Total Amount Outstanding Available of Facility Committed Facilities Revolver Facility (a) & Outstanding Commercial Paper $ 2,500 $ 144 $ 2,356 Other Committed Credit Facilities 33 33 - Total Committed Facilities 2,533 177 2,356 Uncommitted Facilitie
Slide 10: Omnicom Debt Structure
Omnicom Debt Structure Supplemental Information
Slide 11: Omnicom Debt Structure
Omnicom Debt Structure The above chart sets forth Omnicom’s debt outstanding at September 30, 2009. The amounts reflected above for the 2016 and 2019 Senior Notes represent the principal amount of these notes at maturity on April 15, 2016 and July 15, 2019, respectively. October 21, 2009 10
Slide 12: Omnicom Debt Structure
Omnicom Debt Structure The Bank Facility and Commercial Paper Program together provide liquidity in the event any convertible notes are put. We believe that we will then have flexibility to refinance in different debt capital markets. $1.0 Billion $1,200 Senior Notes $1,000 $800 $500 Million $600 Re
Slide 13: Senior Notes Due 2019
Senior Notes Due 2019 Principal Amount $500 Million Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date July 1, 2009 Maturity July 15, 2019 Security Unsecured, pari passu with Bank Facility Coupon 6.25% Spread Over Comparable Treasury at Issue 2.75% Moody’s: Baa1 Ratings S&P: A- Fitch:
Slide 14: Senior Notes Due 2016
Senior Notes Due 2016 Principal Amount $1 Billion Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date March 29, 2006 Maturity April 15, 2016 Security Unsecured, pari passu with Bank Facility Coupon 5.90% Spread Over Comparable Treasury at Issue 1.30% Moody’s: Baa1 Rating S&P: A- Fitch:
Slide 15: 2032 Convertible Notes
2032 Convertible Notes Principal Amount $253 Million Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date March 6, 2002 Maturity July 31, 2032 with annual puts each July Security Unsecured, pari passu with Bank Facility Coupon 0.00% Conversion Price $55 Moody’s: Baa1 Rating S&P: A- Fitc
Slide 16: 2038 Convertible Notes
2038 Convertible Notes Principal Amount $467 Million Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date June 10, 2003 June 15, 2038 with puts in June of 2010, 2013, 2018, 2023 Maturity and annually thereafter until maturity Security Unsecured, pari passu with Bank Facility Coupon 0.00
Slide 17: Current Bank Credit Facility
Current Bank Credit Facility Amount $2.5 Billion Type Unsecured Revolving Credit Maturity 5 Years – June 2011 Facility Fee 13BP per annum Drawn Rate Libor +17BP -Maximum Debt to EBITDA 3:1 Covenants -Minimum Interest Coverage 5:1 October 21, 2009 16
Slide 18: Current Omnicom Credit Ratings
Current Omnicom Credit Ratings Moody’s S&P Fitch Long Term Ratings Baa1 A- A- Short Term Ratings P2 A2 F2 Outlook Stable Negative Stable Note: Reflects credit ratings as of October 20, 2009. October 21, 2009 17
Slide 19: Supplemental Financial Information
Supplemental Financial Information
Slide 20: 2009 vs. 2008 Earnings Per Share
2009 vs. 2008 Earnings Per Share (a) Third Quarter Year to Date 2009 2008 2009 2008 Net Income per Common Share - Omnicom Group: Basic $ 0.53 $ 0.68 $ 1.81 $ 2.29 Diluted 0.53 0.68 1.80 2.28 Earnings Available for Common Shares: Net Income - Omnicom Group $ 165.6 $ 213.6 $ 563.5 $ 729.3 Earnings All
Slide 21: Acquisition Related Expenditures
Acquisition Related Expenditures Nine Months YTD 2009 New Subsidiary Acquisitions (a) $ 5 Affiliates to Subsidiaries (b) 2 Affiliates (c) - Existing Subsidiaries (d) 12 Earn-outs (e) 106 Total Acquisition Expenditures $ 125 (a) Includes acquisitions of a majority interest in agencies resulting in th
Slide 22: Reconciliation of Operating Income to EBITDA
Reconciliation of Operating Income to EBITDA 12 Months ended September 30, 2009 2008 Operating Income $ 1,424 $ 1,773 Depreciation 177 184 Amortization 56 50 EBITDA $ 1,657 $ 2,007 The covenants contained in our credit facility are based on the EBITDA ratios as presented on pages 7 & 16 of this pres