Slide 1: Fourth Quarter 2015 Results
Fourth Quarter 2015 Results February 9, 2016 Investor Presentation
Slide 2: 2015 vs. 2014 P&L Summary – Fourth Quarter
2015 vs. 2014 P&L Summary – Fourth Quarter Fourth Quarter 2015 2014 Revenue $ 4,153.3 $ 4,195.1 EBITA (a) 604.0 609.4 Margin % 14.5% 14.5% Amortization of Intangibles 28.5 30.0 Operating Income $ 575.5 $ 579.4 Margin % 13.9% 13.8% (a) EBITA is a non-GAAP financial measure. See page 28 for the defini
Slide 3: 2015 vs. 2014 P&L Summary – Fourth Quarter (Net Income)
2015 vs. 2014 P&L Summary – Fourth Quarter Fourth Quarter 2015 2014 Operating Income $ 575.5 $ 579.4 Net Interest Expense 36.8 30.0 Income Taxes 176.7 182.2 Tax Rate % 32.8% 33.2% Income from Equity Method Investments 2.2 5.7 Noncontrolling Interests 32.6 43.4 Net Income - Omnicom Group 331.6 329.5
Slide 4: 2015 vs. 2014 Earnings Per Share – Fourth Quarter
2015 vs. 2014 Earnings Per Share – Fourth Quarter Fourth Quarter 2015 2014 Net Income - Omnicom Group $ 331.6 $ 329.5 Net Income allocated to Participating Securities (3.3) (5.6) Net Income available for common shares $ 328.3 $ 323.9 Diluted Shares (millions) 243.8 249.9 EPS - Diluted $ 1.35 $ 1.30
Slide 5: 2015 vs. 2014 P&L Summary – Full Year
2015 vs. 2014 P&L Summary – Full Year Full Year 2015 Reported 2014 Reported Revenue $ 15,134.4 $ 15,317.8 EBITA (a) 2,029.4 2,051.2 Margin % 13.4% 13.4% Amortization of Intangibles 109.3 107.1 Operating Income $ 1,920.1 $ 1,944.1 Margin % 12.7% 12.7% (a) EBITA is a non-GAAP financial measure. See pa
Slide 6: 2015 vs. 2014 P&L Summary – Full Year (Net Income)
2015 vs. 2014 P&L Summary – Full Year Full Year 2015 2014 Reported Reported Operating Income $ 1,920.1 $ 1,944.1 Net Interest Expense 141.5 134.1 Income Taxes 583.6 593.1 Tax Rate % 32.8% 32.8% Income from Equity Method Investments 8.4 16.2 Noncontrolling Interests 109.5 129.1 Net Income - Omnicom G
Slide 7: 2015 vs. 2014 Earnings Per Share – Full Year
2015 vs. 2014 Earnings Per Share – Full Year Full Year 2015 2014 Reported Reported Net Income - Omnicom Group $ 1,093.9 $ 1,104.0 Net Income allocated to Participating Securities (12.4) (20.4) Net Income available for common shares $ 1,081.5 $ 1,083.6 Diluted Shares (millions) 245.2 255.3 EPS - Dilu
Slide 8: Total Revenue Change
2015 Total Revenue Change Fourth Quarter Full Year $ % $ % Prior Period Revenue $ 4,195.1 $ 15,317.8 Foreign Exchange (FX) Impact (a) (236.3) -5.6% (1,008.8) -6.6% Acquisition/Disposition Revenue (b) (5.7) -0.2% 14.6 0.1% Organic Revenue (c) 200.2 4.8% 810.8 5.3% Current Period Revenue $ 4,153.3 -1.
Slide 9: Revenue by Region – Fourth Quarter
2015 Revenue by Region Fourth Quarter Latin Africa America MidEast 2.2% 1.7% Asia Pacific % Organic 10.5% $ Mix % Growth Growth (a) Euro North America $ 2,458.9 3.2% 4.7% Markets & Other UK 403.6 0.2% 4.9% Europe Euro & Other Europe 691.7 -10.3% 3.5% 16.7% North Asia Pacific 433.8 -0.7% 8.6% America
Slide 10: Revenue by Region – Full Year
2015 Revenue by Region Full Year Latin Africa America MidEast 2.2% 1.7% Asia Pacific % Organic 10.4% $ Mix % Growth Growth (a) Euro North America $ 9,029.2 4.1% 5.4% Markets & Other UK 1,510.3 0.2% 7.1% Europe Euro & Other Europe 2,432.6 -14.3% 3.7% 16.1% North Asia Pacific 1,571.9 -2.0% 7.9% UK Ame
Slide 11: Revenue by Discipline
2015 Revenue by Discipline Fourth Quarter Full Year Specialty Specialty 6.8% 7.2% PR PR 8.2% 9.0% Advertising Advertising 53.4% 51.1% CRM 31.6% CRM 32.7% % Organic % Organic $ Mix % Growth Growth (a) $ Mix % Growth Growth (a) Advertising $ 2,216.8 5.5% 12.6% Advertising $ 7,730.2 1.8% 9.3% CRM 1,314
Slide 12: Revenue by Industry
Revenue by Industry Full Year – 2015 Full Year – 2014 T&E Auto T&E Auto 6% 8% 6% 8% Telcom Telcom 5% 5% Consumer Consumer Products Products 9% Tech 9% Tech 9% 10% Financial Financial Services Services 7% 7% Retail Retail 6% 7% Food & Food & Beverage Pharma & Beverage Pharma & 13% Health 13% Health 1
Slide 13: Cash Flow Performance
Cash Flow Performance Full Year 2015 2014 Net Income $ 1,203.4 $ 1,233.1 Depreciation and Amortization Expense 291.1 294.4 Share-Based Compensation Expense 99.4 93.5 Other Items to Reconcile to Net Cash Provided by Operating Activities, 20.8 (38.3) net Free Cash Flow (a) $ 1,614.7 $ 1,582.7 Addition
Slide 14: Cash Flow Performance – Primary Uses of Cash
Cash Flow Performance Full Year 2015 2014 Free Cash Flow (a) $ 1,614.7 $ 1,582.7 Primary Uses of Cash: Dividends 496.7 468.0 Dividends paid to Noncontrolling Interest Shareholders 129.4 111.3 Capital Expenditures 202.7 213.0 Acquisition of Businesses and Affiliates, Acquisition of Additional Noncont
Slide 15: Current Credit Picture
Current Credit Picture Full Year 2015 2014 EBITDA (a) $ 2,211.2 $ 2,238.5 Gross Interest Expense 181.1 177.2 EBITDA / Gross Interest Expense 12.2 x 12.6 x Total Debt / EBITDA 2.1 x 2.0 x Net Debt (b) / EBITDA 0.9 x 1.0 x Debt Bank Loans (Due Less Than 1 Year) $ 6 $ 8 CP & Borrowings Issued Under Rev
Slide 16: Historical Returns
Historical Returns Return on Invested Capital (ROIC) (a) : Twelve Months Ended December 31, 2015 21.5% Twelve Months Ended December 31, 2014 20.7% Return on Equity (b) : Twelve Months Ended December 31, 2015 41.3% Twelve Months Ended December 31, 2014 34.3% (a) Return on Invested Capital is After Ta
Slide 17: Net Cash Returned to Shareholders through Dividends and Share Repurchases
Net Cash Returned to Shareholders through Dividends and Share Repurchases Over the period 2004 through 2015, Omnicom distributed over 100% of Net Income to shareholders through Dividends and Share Repurchases. 108% 108% $11.1 $12.0 104% $10.0 107% $10.0 $8.9 Billions 103% $7.9 103% $8.0 92% $6.9 8.7
Slide 18: Supplemental Financial Information
Supplemental Financial Information February 9, 2016 17
Slide 19: Omnicom Debt Structure
Omnicom Debt Structure Bank Loans $6 2024 Senior Notes $750 2016 Senior Notes $1,000 2019 Senior Notes 2022 Senior Notes $500 $1,250 2020 Senior Notes $1,000 The above chart sets forth Omnicom’s debt outstanding at December 31, 2015. The amounts reflected above for the 2016, 2019, 2020, 2022 and 202
Slide 20: Omnicom Debt Maturity Profile
Omnicom Debt Maturity Profile 2022 Senior Notes $1,250 2016 2020 Senior Senior Notes Notes $1,000 2024 Senior Notes $750 2019 Senior Notes $500 $250 Other Borrowings $0 Other borrowings at December 31, 2015 include short-term borrowings of $6 million which are due in less than one year. For purposes
Slide 21: Historical Return Trends
Historical Return Trends Return on Equity Average through December 31, 2015 – 26.1% ROE (a) Return on Invested Capital Average through December 31, 2015 – 20.7% 45.0% ROIC (b) 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20
Slide 22: Acquisition Related Expenditures
2015 Acquisition Related Expenditures Full Year Acquisition of Businesses and Affiliates (a) $ 60.3 Acquisition of Additional Noncontrolling Interests (b) 33.5 Contingent Purchase Price Payments (c) 58.6 Total Acquisition Expenditures (d) $ 152.4 (a) Includes acquisitions of a majority interest in a
Slide 23: Condensed Cash Flow
Condensed Cash Flow Full Year 2015 2014 Net Income $ 1,203.4 $ 1,233.1 Share-Based Compensation Expense 99.4 93.5 Depreciation and Amortization 291.1 294.4 Other Items to Reconcile to Net Cash Provided by Operating Activities, net 20.8 (38.3) Changes in Operating Capital 557.6 (106.2) Net Cash Provi
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 3 Months Ended December 31 Full Year 2015 2014 2015 2014 Revenue $ 4,153.3 $ 4,195.1 $ 15,134.4 $ 15,317.8 Operating Expenses, excluding Depreciation and Amortization 3,505.4 3,538.7 12,923.2 13,079.3 EBITDA 647.9 656.4 2,211.2 2,238.5 Depreciation 43.9 47.0 181.8
Slide 25: Reconciliation of Non-GAAP Measures – Full Year
Reconciliation of Non-GAAP Measures Full Year Merger-related 2014 Exclude 2014 Reported Tax Benefit Tax Benefit EBITA $ 2,051.2 $ - $ 2,051.2 Operating Income 1,944.1 - 1,944.1 Income Tax Expense 593.1 11.2 604.3 Net Income - Omnicom Group Inc. 1,104.0 11.2 1,092.8 Net Income allocated to participat
Slide 26: Reconciliation of Non-GAAP Measures – Free Cash Flow
Reconciliation of Non-GAAP Measures Full Year 2015 2014 Net Free Cash Flow $ (43.9) $ (410.3) Cash Flow items excluded from Net Free Cash Flow: Changes in Operating Capital 557.6 (106.2) Repayment of Convertible Debt - (252.7) (Repayments of)/Proceeds from Short-term & Long-term Debt, net (1.1) 749.
Slide 27: Supplemental Information
Supplemental Information Fourth Quarter Full Year 2015 % of 2014 % of 2015 % of 2014 % of Rev Rev Rev Rev Revenue $ 4,153.3 $ 4,195.1 $ 15,134.4 $ 15,317.8 Operating expenses: Salary and service costs $ 3,118.8 75.1% $ 3,119.2 74.4% $ 11,361.9 75.1% $ 11,350.0 74.1% Office and general expenses: Amor
Slide 28: Fourth Quarter Acquisition; Disclosure
Fourth Quarter Acquisition Established in 2003, Wednesday Agency Group is a leading integrated creative agency for the fashion, luxury and consumer lifestyles industry. The agency’s main areas of focus include fully integrated campaigns, content strategy, digital design & branding and production. Wi