Slide 1: Management Presentation: Fourth Quarter & Full Year 2004 Results
0) Management Presentation April 14, 2005 Fourth Quarter & Full Year 2004 Results MDC(()PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information ‘This presentation contains forvard-looking statements. The Company's representatives may also make forvard-lnoking stateraents| orally fiom tine to time, Statements in this presentation that are not historical facts, including statemen
Slide 3: Who We Are: Marketing Communications
+ 30 entities providing marketing and specialty communications services inthe US, Canada and the UK + Core values include: + Strong client focus + Entrepreneurial spirit + Value our people + Collaboration to achieve superior results ~ Strong, well-diversified blue-chip clientele: + Top 10 clients re
Slide 4: Revenue by Geography
MDC(})PARTNERS 2003 Canada 24% (OS inmitine) (USpinmine) us us $ 1462 Canada Canada 1 UK 29 WM UK 60 %
Slide 5: Combined Marketing Communications Revenue by Discipline
MDC(K)PARTNERS Combined Marketing Communications Revenue by Discipline 2004 2003 Specialty Specialty 20% 20% Sales Advertising Promotion 45% Sales 9o% Promotion 13% CRM & DM CRM & DM 26% ar 2004 2003 Advertising/ Integrated Communications 45% 36% CRM and Direct Marketing 26% 30% Sales Promotion 9% 1
Slide 6: Who We Are: Secure Products International
MDC(})PARTNERS Who We Are: Secure Products International ® Wa METACA ASIITON MER@URY Saal POTTER Spacers + One af wore largest private | = Strong pltfarm in + Leader n smart card services in postage stamp printers high-end commercial printing Canada and Australia through Placard) with number ane and
Slide 7: 2004 Highlights
MDC(K)PARTNERS 2004 Highlights + Combined Marketing Communications revenue growth of 48% + Organic growth of 13% + Acquisition growth of 33% + Significant new business wins + Closed 11 acquisitians + In September 2004 refinanced debt with a $100 million revalving credit facility » Reduced total debt
Slide 8: 2004 Challenges
MDC(})PARTNERS 2004 Challenges « Financial Reporting » Secure Products + Expense Management + UK Discontinued Operation + Lifemed star-up venture
Slide 9: 2005 Action Plan
MDC(})PARTNERS 2006 Action Plan + Organic Growth + Secure Products + Management change at Metaca + Rigorous new business plan + Plan for asset disposition + Expense Management / Operating Margin Impraverent + New Hires + Chief Accounting Officer + Director, Finance and Investor Relations
Slide 10: Financial summary
MDC(K)PARTNERS Levefrn Devan (pantine Netheans aa 8am or 5 a8 8 mT 2% 40 5% nas 83 69 38 9) $2) 8 to be, 8 mss 8 183 H% ne 1 —2a 8 m3 Br BT 03) sis
Slide 11: Financial results by segment
MDC(K)PARTNERS Four Ta 00 sa Gage Reresn ‘Maseting Communications Bm 8 465 er Secu rods tena Ma 183 ae Bos 8 a9 EEDA ‘Maseting Comm nications B90 8 38 2h Moga 1% It Stews rods tena 2 as 1%, Moga aM 1m Cumpente md tur a) 126 aw% Neti eftom Cask Opmtine ‘afore Ameri f Ramgb ae 6 08) ea Nehmetrom Caaim
Slide 12: Reconciliation of Organic Growth
MDC(K)PARTNERS Reconciliation of Organic Growth (USS in millions) Full Year % 2003 Combined Revenue $ 2003 2004 Combined Revenue 296.9 Increase 96.6 48% Foreign Exchange Impact 43 % Acquisition Revenue 66.1 33% Organic Revenue $ 262 Cm >
Slide 13: Acquisitions — 2004 Key Transactions
MDC(K)PARTNERS Acquisitions — 2004 Key Transactions (Uitianaton Tew Contsdruiion Traneaction Interest Total Purchase 402004 Date Acquired Ownership Price Revemes henbaum bond ag2o04 0% ax $ mo $ 460 ACCENT coun sean 29% % ea ma vitro e72008 68% am 16 39 Other 2004 Acquisition: 3 “ S nu 163 (1 nnd 04
Slide 14: Key New Business Wins — 2004 & YTD 2005
Key New Business Wins — 2004 & YTD 2005 MDC(K)PARTNERS 2004 ‘Agen ‘Account Chigpin Porter Bogwsky Buger King, Gateway, Earthlink Clift Freeman Snapple Colle +MeVoy Minnesota Lottery Kirshenlum Bond+ Partners Edward Jones, Mohegan Sum, Equal bro Hitachi, Aizsteam ‘Mageotes/ Fertitta +Partens Radisson
Slide 15: Chinnici | Direct and new agency partners
MDC(K)PARTNERS CHINNICI | DIRECT a nl ZiG + Bruce Mau Design Inc. Onrocers (curenty sing}
Slide 16: Intangible Amortization Expense Analysis
MDC(K)PARTNERS Intangible Amortization Expense Analysis + Certain acquisitions completed in 2004 triggered the recagnitian af arnortizable intangible assets on the balance sheet during the year + In addition, as of September 22, 2004, Crispin Porter Bogusky was recognized as a variable interest enti
Slide 17: Cash Corporate Expenses Run Rate
Cash Corporate Expenses Run Rate (US$ inmitlions) MDC(})PARTNERS Total Comporate Expenses Stock Based Compensation Incremental Audit and SOX Run Rate Corporate Cash Expenses 2004 $274 (64) 2.3) $167
Slide 18: Consolidated EBITDA before One Time Items
Consolidated EBITDA before One Time Items (US$ in alors) MDC(})PARTNERS EBITDA 2004 As Reported One Time Items: Recovery of Reserve Lifemed Startup Costs Incremental Audit and SOX Timing Differences Run Rate® $ 163 an 18 23 3.0 8 207 () mts exes the impact ofthe Zin sequin
Slide 19: Liquidity Profile
MDC(K)PARTNERS Liquidity Profile + On September 22, 2004, MDC entered into a revolving credit facility with a syndicate of banks providing for borrowings of up to $100 millian, maturing in September 2007 + On April 1, 2008, tatal revolving commitment was increased to §150 million, with mandatory com
Slide 20: Zyman Group Transaction closed April 1, 2005
MDC(K)PARTNERS + Transaction closed April 1, 2005 + Redefines our proposition of partnering with “brilliant people, daing brilliant work for great clients with a unique selling proposition” + Contribution to MDC operating income would have been $15.1 million in 2004 if owned for full period + Immedi
Slide 21: 2005 Expectations
20 2005 Expectations MDC(K)PARTNERS (055 mins Marketing Secure Communications Products Coxporate Consolidated 2005 Growth 2005 Growth 2005 Growth 2005 Growth Revenue $3847 50% «$829 19% $MM 87886 MDC'sShare of EBITDA, S77 101% = «107-1689 «= ARS) «132% = DR IDM Cash EPS) Diluted S 1at 234% Shares Ou
Slide 22: Appendix
Appendix MDC(K)PARTNERS
Slide 23: Companies Acquired by Year
22 MDC(K)PARTNERS Year Company Acquired Marketing Communications ‘Ambrose Can Linton Carral ne. 1992 Bratskeir & Company, Inc. 2000 CChinncl Direct, Ine. 2000 Colle & MVoy, Ire foa9 Computer Composition of Canada in. 1988 Mackenzie Marketing, Ine Pro-Image Corporation Targetcom, LLC Secure Products
Slide 24: Less than Wholly-Owned and Incremental Ownership Summary
23 Less than Wholly-Owned and Incremental Ownership Summary MDC(K)PARTNERS teOvmed Ounership Potentid Bazed on Outstanding Put / Call Options Compan siantoa O76 2000 OSHA 2012 0ST “Recent Marketing Services e2.4% ZB 982% 80.6% ‘Accumade Communicators 0% ‘lard Johreon Communicators 0K a8 Banjo 51.0%
Slide 25: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ LOG O] Management Presentation April 14, 2005 Fourth Quarter & Full Year 2004 Results [LOGO] [ LOG O] Forward Looking Statements and Other Information This presentation contains forward-looking statements. The Company’s representatives may also make