Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2009 Earnings Presentation
24 slides from Omnicom's earnings presentation, Apr 27, 2009
Slide 1: First Quarter 2009 Results
Exhibit 99.2 Investor Presentation First Quarter 2009 Results April 27, 2009
Slide 2: Disclosure
Disclosure The following materials have been prepared for use in the April 27, 2009 conference call on Omnicom’s results of operations for the quarter ended March 31, 2009. The call will be archived on the Internet at http://www.omnicomgroup.com/financialwebcasts. Forward-Looking Statements Certain
Slide 3: 2009 vs. 2008 P&L Summary
2009 vs. 2008 P&L Summary First Quarter 2009 2008 %Δ Revenue $ 2,746.6 $ 3,195.4 -14.0% Operating Income 282.4 350.8 -19.5% % Margin 10.3% 11.0% Net Interest Expense 21.4 11.0 Income Before Tax 261.0 339.8 -23.2% % Margin 9.5% 10.6% Taxes 88.7 115.2 % Tax Rate 34.0% 33.9% Income from Equity Method I
Slide 4: Total Revenue Growth – First Quarter 2009
Total Revenue Growth – First Quarter 2009 $ % Prior Period Revenue $ 3,195.4 Foreign Exchange (FX) Impact (a) (252.3) -7.8% Acquisition Revenue (b) 14.1 0.4% Organic Revenue (c) (210.6) -6.6% Current Period Revenue $ 2,746.6 -14.0% (a) To calculate the FX impact, we first convert the current period’
Slide 5: Revenue by Discipline – First Quarter 2009
Revenue by Discipline – First Quarter 2009 Specialty 9.3% PR 9.5% Advertising 44.2% CRM 37.0% (a) “Change” is the year-over-year increase or decrease from the prior period. April 27, 2009 4
Slide 6: Revenue by Geography – First Quarter 2009
Revenue by Geography – First Quarter 2009 U.K. 8.4% Other 15.0% U.S. Euro 55.8% Markets 20.8% (a) “Change” is the year-over-year increase or decrease from the prior period. April 27, 2009 5
Slide 7: Cash Flow – GAAP Presentation (condensed)
Cash Flow – GAAP Presentation (condensed) 3 Months ended March 31, 2009 2008 Net Income $ 178.2 $ 232.7 Share-Based Compensation Expense 14.5 15.2 Depreciation and Amortization 55.8 57.2 Other Non-Cash Items to Reconcile to Net Cash Used for Operations (2.8) (3.5) Other Changes in Operating Capital
Slide 8: Current Credit Picture
Current Credit Picture 12 Months ended March 31, 2009 2008 EBITDA (a) $ 1,856 $ 1,912 Gross Interest Expense (a) $ 126.0 $ 104.5 EBITDA / Gross Interest Expense 14.7 x 18.3 x Total Debt / EBITDA 1.5 x 1.6 x Debt: Bank Loans (Due Less Than 1 Year) $ 44 $ 20 CP Issued Under $2.5B Revolver Due 6/23/11
Slide 9: Current Liquidity Picture
Current Liquidity Picture As of March 31, 2009 Total Amount of Outstanding Available Facility Committed Facilities Revolver & Commercial Paper (a) $ 2,500 $ 505 $ 1,995 Other Committed Credit Facilities 44 44 - Total Committed Facilities 2,544 549 1,995 (b) Uncommitted Facilities (b) 370 - - Total C
Slide 10: Omnicom Debt Structure
Omnicom Debt Structure Supplemental Information
Slide 11: Omnicom Debt Structure
Omnicom Debt Structure Other Debt Short-term $18 Borrowings Commercial Paper $44 $30 Revolver Borrowing 10 Year Notes $475 $1,000 2038 Convert $467 2032 Convert 2031 Convert $727 $6 The above chart reflects Omnicom’s debt outstanding at March 31, 2009. The amount reflected above for the 10 Year Note
Slide 12: Omnicom Debt Structure
Omnicom Debt Structure The Bank Facility and Commercial Paper Program together provide liquidity in the event any convertible notes are put. We then have flexibility to refinance in different debt capital markets. $1,200 $1.2 Billion $1.0 Billion Senior Convertible Notes 10-Year Note $1,000 Revolver
Slide 13: Senior Notes Due 2016
Senior Notes Due 2016 Principal Amount $1 Billion Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date March 29, 2006 Maturity April 15, 2016 Security Unsecured, pari passu with Bank Facility Coupon 5.90% Spread Over Comparable Treasury at Issue 1.30% Moody’s: Baa1 Rating S&P: A- Fitch:
Slide 14: 2031 Convertible Notes
2031 Convertible Notes Principal Amount $6 Million Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date February 7, 2001 Maturity February 7, 2031 with annual puts each February Security Unsecured, pari passu with Bank Facility Coupon 0.00% Conversion Price $55 Moody’s: Baa1 Rating S&P:
Slide 15: 2032 Convertible Notes
2032 Convertible Notes Principal Amount $727 Million Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date March 6, 2002 Maturity July 31, 2032 with annual puts each July Security Unsecured, pari passu with Bank Facility Coupon 0.00% Conversion Price $55 Moody’s: Baa1 Rating S&P: A- Fitc
Slide 16: 2038 Convertible Notes
2038 Convertible Notes Principal Amount $467 Million Co - Issuers Omnicom Group, Omnicom Finance, Omnicom Capital Date June 10, 2003 June 15, 2038 with puts in June of 2010, 2013, 2018, 2023 Maturity and annually thereafter until maturity Security Unsecured, pari passu with Bank Facility Coupon 0.00
Slide 17: Current Bank Credit Facility
Current Bank Credit Facility Amount $2.5 Billion Type Unsecured Revolving Credit Maturity 5 Years – June 2011 Facility Fee 13BP per annum Drawn Rate Libor +17BP -Maximum Debt to EBITDA 3:1 Covenants -Minimum Interest Coverage 5:1 April 27, 2009 16
Slide 18: Current Bank Credit Facility – Distribution of 33 Banks
Current Bank Credit Facility – Distribution of 33 Banks Global Citigroup ($100) • JPMorgan ($200) • HSBC ($200) • Royal Bank of Scotland ($150) Europe Asia North America Societe Generale ($150) Sumitomo ($100) Bank of America ($200) Deutsche ($150) Bank of Tokyo ($50) Wells Fargo ($175) BBVA ($100)
Slide 19: Current Omnicom Credit Ratings
Current Omnicom Credit Ratings Moody’s S&P Fitch Long Term Ratings Baa1 A- A- Short Term Ratings P2 A2 F2 Outlook Negative Negative Stable April 27, 2009 18
Slide 20: Supplemental Financial Information
Supplemental Financial Information
Slide 21: Q1 2009 vs. Q1 2008 Earnings Per Share
Q1 2009 vs. Q1 2008 Earnings Per Share (a) 2009 2008 Net Income per Common Share - Omnicom Group: Basic $0.53 $0.65 Diluted 0.53 0.64 Earnings Available for Common Shares: Net Income - Omnicom Group $ 164.5 $ 208.7 Earnings Allocated to Participating Securities (2.2) (2.6) Earnings Available for Com
Slide 22: 2008 Earnings Per Share Revised
2008 Earnings Per Share Revised (a) Q1 Q2 Q3 Q4 Full Year As Previously Presented: Basic EPS $0.65 $0.97 $0.69 $0.88 $3.20 Diluted EPS 0.65 0.96 0.69 0.88 3.17 Weighted Average Shares (millions): Basic 318.6 317.5 309.1 307.2 313.0 Diluted 320.9 320.8 310.7 307.2 315.4 Net Income for EPS: Diluted $2
Slide 23: Acquisition Related Expenditures
Acquisition Related Expenditures First Quarter 2009 New Subsidiary Acquisitions (a) $ - Affiliates to Subsidiaries (b) - Affiliates (c) - Existing Subsidiaries (d) 1 Earn-outs (e) 2 Total Acquisition Expenditures $ 3 a) Includes acquisitions of a majority interest in agencies resulting in their cons
Slide 24: Reconciliation of Operating Income to EBITDA
Reconciliation of Operating Income to EBITDA 12 Months ended March 31, 2009 2008 Operating Income $ 1,621 $ 1,694 Depreciation 181 171 Amortization 54 47 EBITDA $ 1,856 $ 1,912 The covenants contained in our credit facility are based on the EBITDA ratios as presented on pages 7 & 16 of this presenta