Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Jefferies Gaming, Lodging, Media & Entertainment Conference (May 2006)
14 slides from Stagwell's conference presentation, May 8, 2006
Slide 1: Jefferies Gaming, Lodging, Media & Entertainment Conference
Jefferies Gaming, Lodging, Media & Entertainment Conference May 8, 2006 MDC(K)PARTNERS
Slide 2: Forward Looking Statements & Other Information
JPARTNERS Forward Looking Statements & Other Information ‘This presentation contains forward-looking statements. The Company's representatives may also make forward-looking statements orally from time to time. ‘Statements inthis presentation that are not historical fects, including statements about
Slide 3: Who We Are: Marketing Communications
Who We Are: Marketing Commun > 30 businesses providing marketing services in the U.S., Canada and U.K. Revenues by Geography 84% USA 14% Canada > Strategically focused on high 2% UK growth marketing communications and consulting > Strong, well-diversified blue- chip clientele 62% SMS 18% CRM 20% SCS
Slide 4: Who We Are: Marketing Communications Partner Firms
MDC (KX) PARTNERS Who We Are : Marketing Communications Partner Firms % “ sei an a ZYMAN" Giro sourcemarketing CHINNICI | DIRECT GEL LE Bare NORTHSTAR ~— ACCENT FLETCHER Bruce Mau Design Inc. ia, Se A } ZiG qj x bryan mills group hello henderson bas — 2g vitrorobertso on BRaTsKEIR @ CoMPANY ) Onbran
Slide 5: Dynamic, growing and rapidly changing market
Dynamic, growing and rapidly changing market > $570 billion world market in 2005 y — Represents 4.8% growth over 2004 — US market accounted for $276 billion or 48% — US market grew 4.6% in 2005 — 2005 US growth lagged nominal GDP growth of 6.3% > 2006 Expectations: — $604 billion world market * 6.0%
Slide 6: Our Philosophy About the Industry
Our Philosophy About the Industry > More and more marketers care about fresh thinking and innovative ideas, not about geographic presence. > From a macro perspective the fundamental demand for marketing expertise is greater than ever before. Clients are trying to achieve growth but the competition f
Slide 7: Our Vision
Our Vision > We will continue to be the place where great talent lives > Our Partners will continue to be the most innovative at providing value-added services, expertise and capabilities that help clients grow their brands # > We will continue to be the most Partner responsive network, by | being o
Slide 8: MDC's Unique Structure
MDC’s Unique Structure > Typical Acquisition Structure: — Consideration in cash and MDC equity — Cash managed centrally by MDC 51% — 70% investment Priority return > Typical Target Profile: Well established market position Strong client relationships Leadership and management Strong margins
Slide 9: Why MDC Attracts Top Talent
Why MDC Attracts Top Talent > Agencies maintain independence, continued financial interest > Creative autonomy > Growth capital and increased visibility > Industry expertise and counsel > Business and strategic planning advice > Financial and M&A expertise > Succession planning
Slide 10: 2005 Consolidated Results
MDC(XJPARTNERS a 2005 Consolidated Results » > Revenue: $443.5 million >MDC EBITDA: — $32.6 million > Cash EPS: $1.03 > Free Cash Flow: $15 million
Slide 11: 2005 Segment Results
2005 Segment Results
Slide 12: Q1 2006 Update
MDC(XJPARTNERS Q1 2006 Update ah > Revenue growth — Net new business f — Organic growth vs. acquisition growth > MDC EBITDA — Growth — Margins > Cash EPS
Slide 13: 2006 Operational Plan
2006 Operational Plan > Focus on growth — 5-7% long term revenue growth — 7- 10% long term EBITDA and cash earnings growth » Existing client relationships » New client relationships > Improving operating margins > Dispose of non-core assets
Slide 14: Jefferies Gaming, Lodging, Media & Entertainment Conference
Jefferies Gaming, Lodging, Media & Entertainment Conference May 8, 2006 MDC(K)PARTNERS
MDC Partners — Jefferies Gaming, Lodging, Media & Entertainment Conference (May 2006) on 6ix