Slide 1: Management Presentation Fourth Quarter & Full Year 2015 Results
Management Presentation Fourth Quarter & Full Year 2015 Results February 18, 2016
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “2016 Financial Outlook”, contains forward-looking statements. The Company’s representatives may also make forward-looking statements orally from time to time. Statements in this presentation that are not historical fact
Slide 3: Fourth Quarter 2015 Summary
FOURTH QUARTER 2015 SUMMARY Industry leading topline growth Strong Adjusted EBITDA growth and margin expansion, despite clean-up costs associated with leadership transition Robust cash generation Execution on growth initiatives such as International, Media Buying & Planning, and Data Science
Slide 4: Fourth Quarter 2015 Financial Highlights
FOURTH QUARTER 2015 FINANCIAL HIGHLIGHTS Organic revenue growth of 7.2%, after a roughly 230 basis points reduction from significantly lower billable pass-through costs Revenue increased 5.6% to $359.0 million from $339.9 million Net loss attributable to MDC Partners of ($26.2) million versus
Slide 5: Full Year 2015 Financial Highlights
FULL YEAR 2015 FINANCIAL HIGHLIGHTS Organic revenue growth of 7.1%, after a 190 basis points reduction from significantly lower billable pass-through costs Revenue increased 8.4% to $1.33 billion from $1.22 million Net loss attributable to MDC Partners of ($37.4) million versus ($24.1) million
Slide 6: Consolidated Revenue and Earnings
CONSOLIDATED REVENUE AND EARNINGS (US$ in millions, except percentages) Three Months Ended December 31, Twelve Months Ended December 31, 2015 2014 % Change 2015 2014 % Change Revenue $ 359.0 $ 339.9 5.6 % $ 1,326.3 $ 1,223.5 8.4 % Operating Expenses Cost of services sold 231.3 222.6 3.9 % 879.7 798.
Slide 7: Revenue Summary
REVENUE SUMMARY (US$ in millions, except percentages) Three Months Ended Twelve Months Ended Revenue $ % Change Revenue $ % Change December 31, 2014 $339.9 $1,223.5 Foreign Exchange Impact (8.3) -2.4% (30.2) -2.5% Acquisition Growth 3.0 0.9% 46.3 3.8% Organic Growth 24.3 7.2% 86.7 7.1% Total Change
Slide 8: Revenue by Geography
REVENUE BY GEOGRAPHY (US$ in millions, except percentages) Three Months Ended December 31, Twelve Months Ended December 31, % Total % Organic % Total % Organic Revenue $ Growth Growth Revenue $ Growth Growth United States $291.1 6.9% 5.9% $1,085.0 9.2% 6.4% Canada 34.2 -19.3% -4.3% 129.0 -14.2% -1.4
Slide 9: Revenue by Client Industry
REVENUE BY CLIENT INDUSTRY Q4 2015 Mix Year-over-Year Growth by Category Q4 2015 Full Year 2015 Above 10% Technology, Healthcare, Healthcare, Technology, Consumer Communications Products, Automotive, Food & Beverage 0% to 10% Food & Beverage, Communications Automotive, Consumer Products Below 0% Ret
Slide 10: Organic Growth Highlights Sustained Market Share Gains
ORGANIC GROWTH HIGHLIGHTS SUSTAINED MARKET SHARE GAINS Notes: (1) MDC organic growth excludes Accent (sold in Q2 2015) in all periods. (2) Peers include Omnicom, IPG, WPP, Havas and Publicis, with consensus estimates for WPP and Havas for Q4 since neither has yet reported the quarter. 10
Slide 11: Adjusted EBITDA
ADJUSTED EBITDA (US$ in millions, except percentages) Three Months Ended December 31, Twelve Months Ended December 31, 2015 2014 % Change 2015 2014 % Change Advertising and Communications 71.9 66.3 8.3 % 240.5 234.2 2.7 % Corporate Group (13.0) (15.3) (15.1) % (58.5) (58.0) 0.8 % Distributions from
Slide 12: Adjusted EBITDA Available for General Capital Purposes
ADJUSTED EBITDA AVAILABLE FOR GENERAL CAPITAL PURPOSES (US$ in millions) Three Months Ended December 31, Twelve Months Ended December 31, 2015 2014 2015 2014 Adjusted EBITDA (1) $65.6 $51.8 $197.7 $179.4 Net Income Attibutable to the Noncontrolling Interests (1.7) (2.1) (9.1) (6.9) Capital Expenditu
Slide 13: Available Liquidity
AVAILABLE LIQUIDITY* (US$ in millions) December 31, 2015 December 31, 2014 Commitment Under Facility $325.0 $325.0 Drawn 0.0 0.0 Undrawn Letters of Credit 5.0 4.8 Undrawn Commitments Under Facility $320.0 $320.2 Total Cash & Cash Equivalents 61.5 113.3 Liquidity $381.5 $433.5 * Subject to available
Slide 14: 2016 Financial Outlook
2016 FINANCIAL OUTLOOK Implied 2015 2016 Year over Year Actuals Guidance Change Revenue $1.326 billion $1.410 to $1.440 billion +6.3% to +8.6% Adjusted EBITDA $197.7 million $225 to $235 million +13.8% to +18.9% Implied Adjusted EBITDA Margin 14.9% 15.8% to 16.4% +90 to +150 basis points Adjusted EB
Slide 15: Appendix
APPENDIX 15
Slide 16: Temporal Put Obligations and Impact on EBITDA
TEMPORAL PUT OBLIGATIONS AND IMPACT ON EBITDA Estimated Put Impact at December 31, 2015 Payment Consideration Incremental (US$ in millions) Cash Stock Total Income in Period 2016 2.5 0.0 2.5 1.1 2017 1.8 0.0 1.8 0.0 2018 3.3 0.1 3.4 2.4 2019 1.9 0.0 1.9 0.0 Thereafter 8.4 0.0 8.4 1.8 Total $17.9 $0.
Slide 17: Summary of Cash Flow
SUMMARY OF CASH FLOW Twelve Months Ended December 31, (US$ in millions) 2015 2014 Cash flows provided by continuing operating activities $164.1 $129.4 Discontinued operations (1.3) (1.8) Net cash provided by operating activities $162.8 $127.5 Cash flows used in continuing investing activities ($47.0
Slide 18: Revenue Trending Schedule
REVENUE TRENDING SCHEDULE (US$ in thousands, except percentages) 2014 2015 Q1-14 Q2-14 Q3-14 Q4-14 FY 2014 Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Revenue United States $228,833 $243,128 $249,128 $272,385 $993,474 $252,018 $271,375 $270,512 $291,146 $1,085,051 Canada 30,913 39,028 38,052 42,397 150,390 29,8
Slide 19: Definition of Non-GAAP Measures
DEFINITION OF NON-GAAP MEASURES Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization, stock-based compensation, acquisition deal costs, deferred acquisition consideration adjustments, distributions from non-consolidated affiliate
Slide 20: MDC Partners Innovation Center, New York
MDC Partners Innovation Center 745 Fifth Avenue, Floor 19 New York, NY 10151 646-429-1800 www.mdc-partners.com