Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Q1 2005 Earnings Presentation
15 slides from Stagwell's earnings presentation, May 11, 2005
Slide 1: Management Presentation: First Quarter 2005 Results
Management Presentation May 10, 2005 First Quarter 2005 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information "This presentation contains forward-looking statements. The Company's representatives may also make forvard-lnoking stateraents| orally fiom tine to time, Statements in this presentation that axe not historical facts, including statemen
Slide 3: Summary of Q1 Results
Summary of Q1 Results MDC(()PARTNERS Beran ‘Mien Communications Sec oducts hesnatinsl BEIDA(NDCsStore) ‘Mien Commendations a Seow oduct eamatinsl ‘arg Capante md Ofer Nehemesiem Catining Opmntine ‘afore Cin ale of Sete wd Seeimentoe Dott Nehemefiem Catining Opmntine Los fom Dicnttond Operations Nebe
Slide 4: Combined Marketing Communications Revenue by Region
Combined Marketing Communications Revenue by Region (036 mins) Q1 2005 Q1 2004 UK Canada 2% 19% us Canada uk $61,262 us 79% (OSpinnion) Revenue 3 w us $49,620 mn Canada 11,934 19% uk 1,256 % MDC(()PARTNERS
Slide 5: Combined Marketing Communications Revenue by Discipline
Combined Marketing Communications Revenue by Discipline MDC(()PARTNERS Q1 2005 Q1 2004 Specialty Specialty ci) 22% Advertising sot sas adverusing Promotion 43% ‘7 sales Promotion 13 cra & DM crm gm ad 33% quaes 911 ‘iveidng/inegaciGonmuicdins 2% CRM ant Die Mating 2% 3% SaeePromstion 1% 16 Spesly Co
Slide 6: Q1 2005 Highlights
MDC(()PARTNERS Q1 2005 Highlights + Combined Marketing Communications revenue grawth of 30% + Organic growth of 11% + Acquisition growth of 18% + MDC's Share of Marketing Communications EBITDA growth of 36% + Acquisition of the Zyman Group + Significant new business wins
Slide 7: Reconciliation of Organic Growth
MDC(()PARTNERS Reconciliation of Organic Growth (US$ in million Full Year $ Q1 2004 Combined Revenue $ 62.8 Q1 2005 Combined Revenue 817 Increase 18.9 30% Foreign Exchange Impact 1.0 2% Acquisition Revenue 111 18% Organic Revenue $ 68 11%
Slide 8: Cash EPS Reconciliation
Cash EPS Reconciliation MDC(()PARTNERS (US$ in millions) Qu 2005 NetLoss $ 3.8) D&A 45 Stock Based Compensation 10 Cash Earnings 17 Diluted Shares 22.2 Cash EPS QT $ 0.08
Slide 9: Liquidity Profile
MDC(()PARTNERS Liquidity Profile + On April 1, 2008, total revolving commitment was increased to $150 million, with mandatory commitment reductions through March 31, 2006 when total commitments return to $100 rnillion - The credit facility was subsequently amended on May 9, 2005 to provide the Compa
Slide 10: Key New Business Wins YTD May '05
MDC(K)PARTNERS Key New Business Wins YTD May ‘05 Agene Account ‘Recent Marketing Sewvices Siae Fam Ieurence ‘lhrd.Johnson Communications Abbott Labs - Meridia Brasher & Co Pepperidge Fann {Yor Vodka! ProFlowers Bruce Mau Design ‘nt Gallery of Ontario / Univeristy of Toronto Bryan Mills Group BMO CIB
Slide 11: Partner Company Logos
MDC(})PARTNERS nark CHINNICI | DIRECT SMO NORTHSTAR MONO [== Fisoeicor maccent = hello race Mau Design Inc. ‘ : ‘Veritas Communications tac. ME ZG oYMAN bryan mills group AC e Onbrans Vit 0 Company =" henderson bas CUFF FREEMAN AN? PARTNERS
Slide 12: Appendix
Appendix MDC(K)PARTNERS
Slide 13: Companies Acquired
MDC(()PARTNERS Year Company Acquired -Merketing Communctions ‘Ambrose Cat Linton Carral Ie. 4902 Bratskeir & Company, Ino 00 CChinricl Ditect, ro 200 Colle & McVoy, In. i309 Computer Composition of Canada in. 1988, Mackenaie Marketing, Ino. Pro-image Corporation Targetcam LLC Secure Products ntemati
Slide 14: Less than Wholly-Owned and Incremental Ownership Summary
Less than Wholly-Owned and Incremental Ownership Summary MDC(K)PARTNERS YeOuned Ounership Pctertid Based on Outstanding Puts Comps sass “SE O08 aS aNIO IT A912 01a “Rocart Maiceting Senvoes 28% GE2K BBB% 000% ‘Aeaumak Communicatone 0% ‘lard Johreon Communictione 0% | aK Banjo 10% Bruce Mau Design aK
Slide 15: Definition of Non-GAAP Metrics
- Com MDC(K)PARTNERS Definition of Non-GAAP Metrics ined: For purposes of this presentation, except as otherwise indicated, 100% of the results of operations of those material entities which are required to be equity accounted for under US GAAP have been combined on a line by line basis with the oth