Slide 1: Management Presentation: Third Quarter 2010 Results
Management Presentation October 27, 2010 Third Quarter 2010 Results MDC(M)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information ‘This presentation, including our “2010 Financial Outlook”, contains forward-looking statements. The Company's representatives may also make forward- Joking statements orally ftom time to tine, Statements in this presentation that are n
Slide 3: Key Highlights
MDC(K)PARTNERS Key Highlights + Ontrack to reach full year 2010 expectations + Organic revenue +7.5% for Q3 2010: an over 200 basis point increase from Q2 2010 and 700 basis point increase from QI 2010 + Revenue increased to $178.6 million versus $134.4 million in Q3 2009. an increase of 32.9% + EBI
Slide 4: Consolidated Revenue and Earnings
Consolidated Revenue and Earnings (55s ations exert pecenmst) MDC(M)PARTNERS Revenue Operating Expenses Cost of services sold Office and general expenses Depreciation and amortization Operating Incame (Loss) Other income (expense) Tacome tax expenie Enquity in earings (loss) of non-consolidated afli
Slide 5: Segment Revenue Results
MDC(K)PARTNERS (3S naib exeptpeags) Thuee Months Ended September 30, ‘Nine Months Ended September 30, 2010 2009 % Change 2010 2009 % Change S$ 106 § 25 196 % S$ 3087 $ 2648 166 % o 130.9 343% + Both segments continue to show improving trends heading into the fourth quarter and 2011. + Strategic Mark
Slide 6: Q3 Revenue Growth Components by Segment
a MDC(K)PARTNERS Strategic Performance Weighted Marketing ‘Marketing Average Services Services, Total Acquisition Growth 6.0% 66.0% uM Foreign Exchange Growth OR 0.9% P% Total 19.6% 62.2% 329% + Strategic Marketing Services expected to maintain double digit organic revenue growth for the year + Perf
Slide 7: Nine Month Revenue Growth Components by Segment
Strategic Performance ‘Weighted Marketing ‘Marketing Average Services Services Total Acqnisition Growth 3% 158% Foreign Exchange Growth 1.6% 18% Total 166% 343% 225% + Year to date performance tracking to high end of planned 5-7% organic growth for the full fiscal year
Slide 8: Third Quarter 2010 Revenue by Client Sector
Third Quarter 2010 Revenue by Client Sector Technology, 8%, Financials, 12% Other, 11% Communications, 15% MDC(K)PARTNERS Consumer Products, 29% Retail, 15%
Slide 9: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA (GSSiomilton. exeptperenage) ‘Three Months Ended September 30, ‘Nine Months Ended September 30, 2010 2009 Change 2010 2009 % Chan; EBITDA ‘Strategic Marketing Services S157 $ 204 230) % $85 $508 4a % margin 142% 21% 141% 192 Performance Marketing Se
Slide 10: Free Cash Flow
Free Cash Flow MDC(K)PARTNERS Three Months Ended September 30, ‘Nine Months Ended September 30, Aes percenages my not foot dio rounding: WSS in millions) 2010 2009 2010 2009 EBITDA 204 $202 sa79 $50.8 ‘Net Income Attibutable to Noncontrolling Interests a4 23) as) ca) Capital Expenditures (em) a2 (82
Slide 11: Liquidity
10 MDC(K)PARTNERS Liquidity Available Liquidity at September 30, 2010 (USS in mtn) ‘Commitment Under Facility Drawn - Letters of Credit 60 Funds Available Under Facility S$ @0 Total Cash 410 Liquidity $1100
Slide 12: 2010 Financial Outlook
WW MDC(K)PARTNERS 2010 Financial Outlook Implied Pro Forma Implied ‘Year over Year 2010 ‘Year over Year* Revenue ‘3650-5655 millon > S675 $690 mulion EBITDA ‘$86 - $88 million 2 2 $96 - $98 mallion Free Cash Flow S41 -$43 million $48 - $50 million + Change in Working Capital and Other +530 million +
Slide 13: Appendix
Appendix MDC(K)PARTNERS
Slide 14: Temporal Put Obligations and Impact on EBITDA
MDC(K)PARTNERS Temporal Put Obligations and Impact on EBITDA Estimated Put Impact at September 30, 2010 ‘Payment Consideration Incremental 5S nmting Cash Stock Total EBITDA in Period 2010 $59 $0.1 $60 $20 2011 18 06 24 09 2012 90 07 97 16 2013 30 07 37 20 Thereafter 93 03 96 23 Total $290 S24 S314 $
Slide 15: Balance Sheet: 2016 Senior Notes
Balance Sheet: 2016 Senior Notes Principal Amount MDC(K)PARTNERS $290 Million Date October 23, 2009/May 11, 2010 Maturity November 1, 2016-7 Year Security Unsecured Coupon 11% Ratings ‘Moody’s - Corporate: B1; Notes: B2 S&P: Corporate: BB-; Notes: BB-
Slide 16: Balance Sheet: Revolving Credit Facility
MDC(K)PARTNERS Balance Sheet: Revolving Credit Facility Amount $75 Million Type Senior Secured Maturity October 23, 2014-5 Year Facility Fee SObps per annum Drawn Rate Prime + 300bps Covenants + Minimum EBITDA: $50 million - Fixed Charge Coverage Ratio: 1.25:1.0 « Senior Leverage Ratio: 2.0:1.0
Slide 17: Summary Cash Flow Data
16 MDC(K)PARTNERS Summary Cash Flow Data ‘Months Ended September 30, (USS mmilions) 2010 2009 Cash flows provided by continuing operating activities $26.4 $504 Discontinued operations i 2 2 2 Cash flows used in continuing investing activities (886.4) (112) Discontinued operations 07) 00 Effect of ex
Slide 18: Definition of Non-GAAP Measures
MDC(M)PARTNERS Definition of Non-GAAP Measures EBITDA: EBITDA isa non-GAAP measure, that represents operating profit plus depreciation and amortization, stock- ‘based compensation, acquisition deal costs, deferred acquisition consideration adjustments and profit distributions from affiliates, Organi