Omnicom Group Inc. · NYSE:OMC
Omnicom — Q1 2004 Earnings Presentation
10 slides from Omnicom's earnings presentation, Apr 27, 2004
Slide 1: First Quarter 2004 Results Investor Presentation
Exhibit 99.2 OmnicomGroup FIRST QUARTER 2004 RESULTS Investor Presentation April 27, 2004 The following materials have been prepared for use in the April 27, 2004 conference call on Omnicom’s results of operations for the quarter ended March 31, 2004. The call will be archived on the Internet at htt
Slide 2: 2004 vs. 2003 P&L Summary and Earnings Per Share
First Quarter (a) 2004 2003 % (Change) Revenue $ 2,231.4 $ 1,937.2 15.2% Operating Income 229.3 202.2 13.4% % Margin 10.3% 10.4% Net Interest Expense 10.4 8.3 Profit Before Tax 218.9 193.9 12.9% % Margin 9.8% 10.0% Taxes 73.6 67.1 % Tax Rate 33.6% 34.6% Profit After Tax 145.3 126.8 14.6% Equity in A
Slide 3: Investment Activity
(a) In connection with our adoption of SFAS 123 – Accounting for Stock-Based Compensation as amended by SFAS 148, on January 1, 2004 utilizing the modified prospective method, stock-based compensation costs have been expensed in the current period and the results for the quarter ended March 31, 2003
Slide 4: 2004 Total Revenue Growth and Revenue By Discipline
Organic Revenue(c) 112.2 5.8% Current Period Revenue $2,231 .4 15.2% (a) To calculate the FX impact, we first convert the current period’s local currency revenue using the average exchange rates from the equivalent prior period to arrive at constant currency revenue. The FX impact equals the differe
Slide 5: 2004 Revenue By Geography and Current Credit Picture
2004 Revenue By Geography $ Mix $ Growth United States $1,221.2 $121.6 Organic 78.0 Acquisition 43.6 International $1,010.2 $172.5 Organic 34.2 Acquisition 8.5 FX 129.8 $ Mix % Growth United States $1,221.2 11.1% Euro Currency Markets 455.8 17.7% United Kingdom 251.1 18.7% Other 303.3 27.1% OmnicomG
Slide 6: Current Liquidity Picture
Net Debt / EBIT 1.8 x 2.1 x Debt: Bank Loans (Due Less Than 1 Year) $ 62 $ 96 $835 Million Revolver Due 11/14/05 — 100 CP issued under 364 Day Facility (b) — 350 5.20% Euro Notes Due 6/24/05 (c) 188 166 $850 Million Convertible Notes Due 2/7/31 847 847 $900 Million Convertible Notes Due 7/31/32 892
Slide 7: Total Liquidity and Traditional Return on Equity
Cash & Short Term Investments 545 Total Liquidity Available $2,580 (a) The underlying $1.2 billion 364 Day Credit facility expires 11/12/04 plus one-year term out at Omnicom’s option. (b) Uncommitted facilities in the U.S., U.K. and Canada. These amounts are excluded for purposes of this analysis. O
Slide 8: Acquisitions Summary
Acquisitions Summary Acquisition Related Expenditures First Quarter 2004 New Subsidiary Acquisitions (a) $ 3 Affiliates to Subsidiaries (b) — Affiliates (c) — Existing Subsidiaries (d) 25 Earn-outs (e) 11 Total Acquisition Expenditures $39 Note: See appendix for subsidiary acquisition profiles. (a)
Slide 9: Potential Obligations and First Quarter Acquisition
(a) The ultimate payments will vary as they are dependent on future events and changes in FX rates. (b) Estimated remaining obligation as of March 31, 2004. OmnicomGroup 13 Potential Obligations In conjunction with certain transactions Omnicom has agreed to acquire (at the sellers’ option) additiona
Slide 10: Strat@comm acquisition profile
development and media training; regulatory intelligence; product positioning; financial and investor relations; employee communications; change management; and crisis communications. Strat@comm is based in Washington, D.C. and Detroit, Michigan. OmnicomGroup 15