Omnicom Group Inc. · NYSE:OMC
Omnicom — Q2 2021 Earnings Presentation
25 slides from Omnicom's earnings presentation, Jul 20, 2021
Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results July 20, 2021 Investor Presentation
Slide 2: 2021 vs. 2020 P&L Summary - Second Quarter
2021 vs. 2020 P&L Summary Second Quarter Second Quarter 2021 (a) 2020 (b) Revenue $ 3,571.6 $ 2,800.7 Operating Expenses (c) 3,003.2 2,738.2 Operating Profit 568.4 62.5 Net Interest Expense 73.5 47.2 Income Tax Expense 123.2 21.9 Tax Rate % 24.9 % 143.1 % Loss From Equity Method Investments (0.1) (7
Slide 3: 2021 vs. 2020 P&L Summary - Year to Date
2021 vs. 2020 P&L Summary Year to Date Year to Date 2021 (a) 2020 (b) Revenue $ 6,998.6 $ 6,207.6 Operating Expenses (c) 5,964.8 5,724.9 Operating Profit 1,033.8 482.7 Net Interest Expense 121.0 93.0 Income Tax Expense 235.2 119.3 Tax Rate % 25.8 % 30.6 % Loss From Equity Method Investments (0.1) (1
Slide 4: Operating Expense Detail
Operating Expense Detail Second Quarter Year to Date % of % of % of % of 2021 Rev 2020 (a)(b) Rev 2021 Rev 2020 (a)(b) Rev Revenue $ 3,571.6 $ 2,800.7 $ 6,998.6 $ 6,207.6 Operating expenses: Salary and service costs: Salary and related service costs 1,721.7 48.2 % 1,424.7 50.9 % 3,370.9 48.2 % 3,067
Slide 5: 2021 Total Revenue Change
2021 Total Revenue Change Second Quarter Year to Date $ %∆ $ %∆ Prior Period Revenue $ 2,800.7 $ 6,207.6 Foreign exchange rate impact (a) 150.8 5.4 % 246.5 4.0 % Acquisition revenue, net of disposition revenue (b) (62.0) (2.2)% (77.0) (1.2)% Organic growth (c) 682.1 24.4 % 621.5 10.0 % Current Perio
Slide 6: 2021 Revenue by Discipline
2021 Revenue by Discipline CRM CRM Second Quarter Experiential Year to Date Experiential 3.5% CRM 3.0% CRM CRM CRM Execution Execution Commerce Commerce & Support & Support and Brand and Brand 7.0% 7.1% Consulting Consulting PR 6.2% PR 6.2% 9.5% 9.7% CRM CRM Healthcare Precision Precision 8.7% Marke
Slide 7: 2021 Revenue by Region
2021 Revenue by Region Second Quarter Year to Date Latin Middle East Latin America Middle East & Africa America 2.0% & Africa 1.5% 1.9% 1.5% Asia Asia Pacific Pacific 12.5% 12.1% Euro Euro Markets & Markets & Other Other Europe Europe 18.6% 17.8% United States United States 51.5% 53.0% UK UK 10.5% 1
Slide 8: 2021 Revenue by Region
2021 Revenue by Region Second Quarter Year to Date % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) United States $ 1,840.7 16.0 % 19.9 % United States $ 3,708.9 6.5 % 8.5 % Other North America 116.7 52.3 % 37.1 % Other North America 221.0 23.1 % 14.0 % UK 379.7 43.0 % 23.8 %
Slide 9: Revenue by Industry
Revenue by Industry Year to Date – 2021 Year to Date – 2020 T&E Auto T&E Auto 9% 10% 8% 10% Telcom 5% Telcom Consumer Consumer 6% Products Products 8% 8% Tech Tech 9% 8% Financial Financial Services Services 7% 8% Retail Retail 7% 6% Food & Food & Beverage Beverage 14% 14% Pharma & Pharma & Health H
Slide 10: Cash Flow Performance
Cash Flow Performance Six Months Ended June 30 2021 2020 Net Income $ 677.5 $ 257.4 Depreciation and Amortization of Intangible Assets 106.8 114.1 Share-Based Compensation 39.1 34.9 Gain on disposition of subsidiary (50.5) — COVID-19 Repositioning Costs — 277.9 Other Items to Reconcile to Net Cash U
Slide 11: Cash Flow Performance
Cash Flow Performance Six Months Ended June 30 2021 2020 Free Cash Flow (a) $ 795.5 $ 723.6 Primary Uses of Cash: Dividends paid to Common Shareholders 292.4 282.9 Dividends paid to Noncontrolling Interest Shareholders 38.6 35.2 Capital Expenditures 22.9 33.6 Acquisition of Businesses and Affiliates
Slide 12: Current Credit Picture
Current Credit Picture Twelve Months Ended June 30 2021 2020 EBITDA (a) $ 2,365.2 $ 1,830.6 Total Debt / EBITDA 2.2 x 3.1 x Net Debt (b) / EBITDA 0.4 x 1.3 x Debt Bank Loans (Due Less Than 1 Year) $ 9.3 $ 6.4 CP & Borrowings Issued Under Revolver — — USD-denominated Senior Notes (c) 4,150.0 4,600.0
Slide 13: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a): Twelve months ended June 30, 2021 25.9 % Twelve months ended June 30, 2020 17.8 % Return on Equity (b): Twelve months ended June 30, 2021 46.8 % Twelve months ended June 30, 2020 38.9 % (a) Return on Invested Capital is After Tax Reported Ope
Slide 14: Supplemental Financial Information
Supplemental Financial Information July 20, 2021 13
Slide 15: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2026 Senior Notes $1,400 $1,200 $1,000 2031 2024 Senior Senior 2027 2031 Notes $800 Notes Euro 2030 Euro Senior Senior Senior Notes Notes Notes $600 $400 $200 Other Borrowings $0 31 1 1 30 29 0 28 9 27 8 26 7 25 6 24 5 23 4 22 3 21 2 -2 -3 -3 -2 -2 -2 -2 -2 -2 -2 -2 n-
Slide 16: Operating Expense Detail - Constant $
Operating Expense Detail - Constant $ Second Quarter Year to Date (a) (b)(c) 2021 2021 C$ 2020 2021 2021 C$ (a) 2020 (b)(c) Operating expenses: Salary and service costs: Salary and related service costs $ 1,721.7 $ 1,645.4 $ 1,424.7 $ 3,370.9 $ 3,244.3 $ 3,067.1 Third-party service costs (d) 881.4 8
Slide 17: Net Interest Expense Detail
Net Interest Expense Detail Second Quarter Year to Date 2021 2020 2021 2020 Net Interest expense: Interest expense (a) $ 80.3 $ 53.7 $ 134.1 $ 112.2 Interest income 6.8 6.5 13.1 19.2 Net Interest Expense $ 73.5 $ 47.2 $ 121.0 $ 93.0 (a) Interest Expense during the second quarter of 2021 included a $
Slide 18: 2021 Acquisition Related Expenditures
2021 Acquisition Related Expenditures Six Months Ended June 30 Acquisition of Businesses and Affiliates (a) $ 25.9 Acquisition of Additional Noncontrolling Interests (b) 5.9 Contingent Purchase Price Payments (c) 6.9 Total Acquisition Expenditures (d) $ 38.7 (a) Includes acquisitions of a majority i
Slide 19: Condensed Cash Flow
Condensed Cash Flow Six Months Ended June 30 2021 2020 Net Income $ 677.5 $ 257.4 Share-Based Compensation 39.1 34.9 Depreciation and Amortization of Intangible Assets 106.8 114.1 Other Items to Reconcile to Net Cash Used in Operating Activities, net 22.6 39.3 Gain on disposition of subsidiary (50.5
Slide 20: 2021 vs. 2020 Non-GAAP Financial Measures – EBITA
2021 vs. 2020 Non-GAAP Financial Measures – EBITA Second Quarter Year to Date 2021 2020 2021 2020 Revenue $ 3,571.6 $ 2,800.7 $ 6,998.6 $ 6,207.6 Operating expenses (a) 3,003.2 2,738.2 5,964.8 5,724.9 Operating Profit 568.4 62.5 1,033.8 482.7 Operating Profit Margin % 15.9 % 2.2 % 14.8 % 7.8 % Add b
Slide 21: Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA
Reconciliation of Non-GAAP Financial Measures – EBITA and EBITDA Three Months Ended Six Months Ended Twelve Months Ended June 30 June 30 June 30 2021 2020 2021 2020 2021 2020 Net Income (Loss) - Omnicom Group Inc. $ 348.2 $ (24.2) $ 636.0 $ 234.0 $ 1,347.4 $ 939.2 Net Income Attributed to Noncontrol
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Six Months Ended June 30 2021 2020 Net Cash Used in Operating Activities $ (295.7) $ (862.2) Operating Activities items excluded from Free Cash Flow: Changes in Operating Capital (1,091.2) (1,585.8) Free Cash Flow $ 795.5 $ 723.6 Six Months Ended June 30
Slide 23: Second Quarter Acquisition
Second Quarter Acquisition Archbow Consulting helps pharmaceutical and biotech companies design, build, and optimize market access operations, product distribution, and patient support hubs. Established in 2017, Archbow's services focus on assisting clients’ commercial planning with offerings such a
Slide 24: Second Quarter Acquisition
Second Quarter Acquisition Credera acquired a majority stake in Areteans, a leading global services and solutions company, to extend its depth in digital transformation, digital marketing and e-commerce capabilities. Areteans specializes in the design, delivery, and implementation of real-time inter
Slide 25: Disclosure
Disclosure The preceding materials have been prepared for use in the July 20, 2021 conference call on Omnicom’s results of operations for the three and six months ended June 30, 2021. The call will be archived on the Internet at http://investor.omnicomgroup.com/investor-relations/news-events-and-fil