Omnicom Group Inc. · NYSE:OMC
Omnicom — Q3 2003 Earnings Presentation
10 slides from Omnicom's earnings presentation, Oct 28, 2003
Slide 1: Third Quarter 2003 Results Investor Presentation
Exhibit 99.2 OmnicomGroup THIRD QUARTER 2003 RESULTS Investor Presentation October 28, 2003 The following materials have been prepared for use in the October 28, 2003 conference call on Omnicom’s results of operations for the quarter ended September 30, 2003. The call will be archived on the Interne
Slide 2: 2003 vs. 2002 P&L Summary and Earnings Per Share
Third Quarter Year to Date 2003 2002 % Change 2003 2002 % Change Revenue $2,028.6 $1,768.5 14.7% $6,115.4 $5,417.5 12.9% Operating Income 234.4 211.4 10.9% 794.5 770.7 3.1% % Margin 11.6% 12.0% 13.0% 14.2% Net Interest Expense 11.5 5.6 32.8 22.8 Profit Before Tax 222.9 205.8 8.3% 761.7 747.9 1.8% %
Slide 3: 2003 Total Revenue Growth and Revenue By Discipline
Prior Period Revenue $1,768.5 $5,417.5 Foreign Exchange (FX) Impact(a) 80.2 4.5% 313.8 5.8% Acquisition Revenue(b) 87.2 4.9% 196.6 3.6% Organic Revenue(c) 92.7 5.2% 187.5 3.5% Current Period Revenue $2,028.6 14.7% $6,115.4 12.9% (a) To calculate the FX impact, we first convert the current period’s l
Slide 4: 2003 Revenue By Discipline and Geography
Revenue By Discipline $ Mix Growth Advertising 2,648.4 12.7% CRM 2,042.2 19.4% PR 706.5 1.8% Specialty 718.3 8.2% Note: “Growth” is the year-over-year growth from the prior period. OmnicomGroup 5 2003 Revenue By Geography Domestic vs. International $ Mix $ Growth United States $1,111.1 $119.7 Organi
Slide 5: Revenue By Geography and Current Credit Picture
Primary Markets $ Mix Growth United States $1,111.1 12.1% Euro Markets 411.6 18.8% United Kingdom 223.5 8.8% Other 282.4 25.4% Domestic vs. International $ Mix $ Growth United States $3,392.9 $261.8 Organic 142.7 Acquisition 119.1 International $2,722.5 $436.1 Organic 44.7 Acquisition 77.6 FX 313.8
Slide 6: Current Liquidity Picture
Net Interest Expense (a) $ 40.4 $ 37.8 EBIT / Net Interest 27.9x 29.1x Total Debt / EBIT 2.3x 2.4x Debt: Bank Loans (Due Less Than 1 Year) $ 53 $ 95 $835 Million Revolver Due 11/14/05 — 374 CP issued under 364 Day Facility (b) — 200 5.20% Euro Notes Due 6/24/05 (c) 178 151 $850 Million Convertible N
Slide 7: Total Liquidity and Traditional Return on Equity
Total Credit Facilities $2,301 $ 53 $1,875 Cash & Short Term Investments 588 Total Liquidity Available $2,463 (a) The underlying $1.040 billion 364 Day Credit facility expires 11/14/03 plus one-year term out at Omnicom’s option. (b) Uncommitted facilities in the U.S., U.K. and Canada. These amounts
Slide 8: Acquisitions Summary
Acquisitions Summary Acquisition Related Expenditures 9 Months YTD 2003 New Subsidiary Acquisitions (a) $ 30 Affiliates to Subsidiaries (b) 7 Affiliates (c) 2 Existing Subsidiaries (d) 72 Earn-outs (e) 220 Total Acquisition Expenditures $331 Note: See appendix for subsidiary acquisition profiles. (a
Slide 9: Potential Put Obligations
(a) The ultimate payments will vary as they are dependent on future events and changes in FX rates. (b) Estimated remaining obligations as of September 30, 2003. OmnicomGroup Acquisitions 12 Potential Put Obligations In conjunction with certain transactions Omnicom has agreed to acquire (at the sell
Slide 10: Acquisition Profiles: Delfin Group and Grottera
The Delfin Group specializes in event and field marketing, offering a full range of capabilities throughout Spain and Portugal. The Group has years of experience in sports marketing programs, grassroots activities and strategic sponsorship integration. Considered one of the top 20 emotional brand bu