Slide 1: Second Quarter 2012 Results
Second Quarter 2012 Results July 17, 2012 Investor Presentation
Slide 2: 2012 vs. 2011 P&L Summary
2012 vs. 2011 P&L Summary Second Quarter Year to Date 2012 2011 % Δ 2012 2011 % Δ Revenue $3,561.0 $3,487.4 2.1% $6,868.2 $6,638.8 3.5% EBITA (a) 530.4 511.4 3.7% 916.8 854.2 7.3% % Margin 14.9% 14.7% 13.3% 12.9% Amortization of Intangibles 24.0 23.3 47.9 43.9 Operating Income $506.4 $488.1 3.7% $86
Slide 3: 2012 vs. 2011 P&L Summary (continued)
2012 vs. 2011 P&L Summary Second Quarter Year to Date 2012 2011 % Δ 2012 2011 % Δ Operating Income $506.4 $488.1 3.7% $868.9 $810.3 7.2% % Margin 14.2% 14.0% 12.7% 12.2% Net Interest Expense 34.9 27.6 64.0 59.9 Income Taxes 161.9 158.1 271.2 231.9(a) % Tax Rate 34.3% 34.3% 33.7% 30.9% Income from Eq
Slide 4: 2012 vs. 2011 Net Income and Earnings Per Share
2012 vs. 2011 Net Income and Earnings Per Share Second Quarter Year to Date 2012 2011 2012 2011 Net Income – Omnicom Group $282.7 $275.1 $487.3 $477.0 Net Income – Participating Securities (6.4) (2.9) (10.9) (4.9) Net Income Available for Common Shares $276.3 $272.2 $476.4 $472.1 Diluted Shares (mil
Slide 5: 2012 Total Revenue Change
2012 Total Revenue Change Second Quarter Year to Date $ % Δ $ % Δ Prior Period Revenue $3,487.4 $6,638.8 Foreign Exchange (FX) Impact (a) (130.4) -3.7% (166.5) -2.5% Acquisition/Disposition Revenue (b) 25.3 0.7% 56.4 0.9% Organic Revenue (c) 178.7 5.1% 339.5 5.1% Current Period Revenue $3,561.0 2.1%
Slide 6: 2012 Revenue by Discipline
2012 Revenue by Discipline Second Quarter Year to Date Specialty Specialty 7.3% PR 7.4% PR 9.0% 9.2% Advertising Advertising 47.5% 47.2% CRM CRM 36.2% 36.2% % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) Advertising $1,690.7 3.4% 7.1% Advertising $3,240.8 5.7% 7.8% CRM 1,287
Slide 7: 2012 Revenue by Geography
2012 Revenue by Geography Second Quarter Year to Date UK UK 8.7% 8.7% Rest of Rest of World World 22.9% 22.8% Euro Euro Markets Markets 16.2% 16.4% U.S. U.S. 52.2% 52.1% July 17, 2012 6
Slide 8: 2012 Revenue by Geography (cont'd)
2012 Revenue by Geography (cont’d) Second Quarter Year to Date $ Mix $ Growth $ Mix $ Growth United States $1,859.6 $95.4 United States $3,579.0 $162.2 Organic 95.6 Organic 168.9 Acquisition (0.2) Acquisition (6.7) International $1,701.4 $(21.8) International $3,289.2 $67.2 Organic 83.1 Organic 170.
Slide 9: Revenue by Industry
Revenue by Industry Second Quarter – 2012 T&E Auto 6% 9% Telcom 6% Consumer Products Tech 9% 10% Financial Retail Services 6% 9% Pharma & Health Food & 10% Beverage 14% Other 21% Second Quarter – 2011 T&E Auto 6% 8% Telcom 7% Consumer Products 10% Tech 9% Financial Services Retail 9% 6% Pharma & Foo
Slide 10: Cash Flow Performance
Cash Flow Performance Six Months Ended June 30 2012 2011 Net Income $540.2 $524.4 Depreciation and Amortization Expense 138.7 133.9 Share-Based Compensation Expense 44.4 32.9 Other Non-Cash Items to Reconcile to Net Cash Provided by (59.2) (140.6)(b) Operating Activities, net Free Cash Flow (a) $664
Slide 11: Cash Flow Performance: Uses of Cash
Cash Flow Performance Six Months Ended June 30 2012 2011 Free Cash Flow (a) $664.1 $550.6 Primary Uses of Cash: Dividends 153.5 129.2 Dividends paid to Noncontrolling Interest Shareholders 56.8 50.1 Capital Expenditures 112.8 81.1 Acquisitions and Payments for Additional Interest in Controlled 98.9
Slide 12: Current Credit Picture
Current Credit Picture 12 Months Ended June 30 2012 2011 EBITDA (a) $2,008.3 $1,827.7 Gross Interest Expense 161.8 153.8 EBITDA / Gross Interest Expense 12.4x 11.9 x Total Debt / EBITDA 2.0x 1.8 x Net Debt (b) / EBITDA 1.1x 1.2 x Debt Bank Loans (Due Less Than 1 Year) $12 $66 CP & Borrowings Issued
Slide 13: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve Months Ended June 30, 2012 16.0% Twelve Months Ended June 30, 2011 15.5% Return on Equity (b): Twelve Months Ended June 30, 2012 28.2% Twelve Months Ended June 30, 2011 24.5% (a) Return on Invested Capital is After Tax Operating Incom
Slide 14: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases Omnicom's Revenues and Net Income doubled since 2002(a). From 2002 through Q2 2012, Omnicom distributed over 95% of Net Income to shareholders, through Dividends and Share Repurchases. 9.0 $8.66 $8.51 8.0 7.0 $6.50 Billions 6.
Slide 15: Supplemental Financial Information
Supplemental Financial Information July 17, 2012 14
Slide 16: Omnicom Debt Structure
Omnicom Debt Structure Bank Loans $12 2038 Convert $407 2032 Convert $253 2016 Senior Notes $1,000 2022 Senior Notes 2019 Senior Notes $750 $500 2020 Senior Notes $1,000 The above chart sets forth Omnicom’s debt outstanding at June 30, 2012. The amounts reflected above for the 2016, 2019, 2020 and 2
Slide 17: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile $1,200 2016 2020 Senior Notes Senior Notes $1,000 2022 $800 Senior Notes $600 2019 Senior Notes 2038 $400 Convert 2032 Convert $200 Other Borrowings $0 Our 2032 Convertible Notes are putable on July 31, 2012 and annually in July thereafter until maturity. Our 2038 Conve
Slide 18: Senior Notes Due 2022
Senior Notes Due 2022 Principal Amount $750 Million Omnicom Group, Omnicom Co - Issuers Finance, Omnicom Capital Date April 23, 2012 Maturity May 1, 2022 Security Unsecured, pari passu with Bank Facility Coupon 3.625% Spread Over Comparable Treasury at Issue 1.70% Moody’s: Baa1 Rating S&P: BBB+ July
Slide 19: Condensed Cash Flow
Condensed Cash Flow Six Months Ended June 30 2012 2011 Net Income $540.2 $524.4 Share-Based Compensation Expense 44.4 32.9 Depreciation and Amortization 138.7 133.9 Gain on Remeasurement of Equity Interest in Clemenger Group – (123.4) Other Non-Cash Items to Reconcile to Net Cash Provided by Operati
Slide 20: 2012 Acquisition Related Expenditures
2012 Acquisition Related Expenditures Year to Date Acquisitions of Businesses and Affiliates (a) $78.2 Additional Interest in Controlled Subsidiaries (b) 2.6 Earn-outs (c) 32.4 Total Acquisition Expenditures (d) $113.2 (a) Includes acquisitions of a majority interest in agencies resulting in their c
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 3 Months Ended June 30 12 Months Ended June 30 2012 2011 2012 2011 Revenue $3,561.0 $3,487.4 $14,102.0 $13,220.2 Operating Expenses, excluding Depreciation and Amortization 2,985.3 2,930.7 12,093.7 11,392.5 EBITDA 575.7 556.7 2,008.3 1,827.7 Depreciation 45.3 45.3
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Six Months Ended June 30 2012 2011 Net Free Cash Flow $(328.7) $(543.7) Cash Flow items excluded from Net Free Cash Flow: Changes in Operating Capital (506.8) (813.2) Proceeds from Short-term & Long-tem Debt, net 749.7 10.1 Repayment of Convertible Debt – (0.1) Ot
Slide 23: Second Quarter Acquisition: Portland
Second Quarter Acquisition Portland is a communications, public affairs and international affairs consultancy founded in 2001. Portland’s services include corporate positioning & strategy, crisis communications, media communications & technology, events, digital strategy, social media monitoring, mo
Slide 24: Second Quarter Acquisition: adam&eve
Second Quarter Acquisition Founded in 2008, adam&eve has built a strong client base of blue chip clients and gained recognition as Agency of the Year in 2010 by Campaign and Marketing magazines. The agency offers a wide range of marketing services, including general and digital advertising. Based in