Slide 1: Management Presentation – Second Quarter 2007 Results
Management Presentation August 2, 2007 Second Quarter 2007 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information This presentation 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 aot historical facts, including statements a
Slide 3: Summary of Consolidated Results
MDC(K)PARTNERS Summary of Consolidated Results 255 mmiions) Three Months Ended June 30, Six Months Ended June 30, 2007 2006 % Change 2007 2006 % Change Revenue $1353 $ 1001 55.1 % $ 2548 $ 1982 28.5% Operating Expenses Cost of services sold 878 60.9 442% 166.4 1206 379 % SG&A 360 312 15.3% 70.1 61.0
Slide 4: Normalized Results
MDC(K)PARTNERS Normalized Results Three Months June 30, Six Months June 30, SS in millions) 2007 2006 2007 2006 Reported Revenue $ 1353 S$ 1001 $ 2548 S$ 198.2 ‘MFP revenues 7) (2.6) 22) (6.1) Consolidation of equity affiliates - 56 - 107 Client termination payment - (0.8) - (3) Adjusted Revenue 134
Slide 5: Summary of Segment Results — Revenue
MDC(})PARTNERS Summary of Segment Results — Revenue 5S a mitons) ‘Three Months Ended June 30, ‘Six Months Ended June 30, 2007 2006 % Change 2007 2006 % Change Revenue Strategic Marketing Services $ BA S$ 556 410 % $1490 $ 1125 324% Customer Relationship Management 25.7 209 228 % 492 308 237 % Specia
Slide 6: Q2 2007 Marketing Communications Revenue Growth by Segment
MDC(K)PARTNERS Q2 2007 Marketing Communications Revenue Growth by Segme: Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services Management Services Total Acquisition Growth 3.5% = = 19% Foreign Exchange Growth 03% = 17% 0.5% Consolidation of Equity Affiliates 5
Slide 7: YTDQ2 2007 Marketing Communications Revenue Growth by Segment
MDC(K)PARTNERS YTDQ2 2007 Marketing Communications Revenue Growth by Segment Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services ‘Management Services Total Acquisition Growth 1.7% = = 1.0% Foreign Exchange Growth 0.1% a 0.9% 0.2% Consolidation of Equity Affi
Slide 8: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA G55 a mation) ‘Three Months Ended June 30, Six Months Ended June 30, 2007 2006 % Change 2007 _2006 % Change EBITDA Strategic Marketing Services $ Bs S$ 104 299° % S m1 $ 25 71% Customer Relationship Management 24 14 28 % 42 Bl 355% Specialized Comau
Slide 9: Summary of Segment Results — MDC's Share of EBITDA
MDC(K)PARTNERS Summary of Segment Results — MDC’s Share of EBITDA (€55 inmiions) ‘Three Months Ended June 30, Six Months Ended June 30, 2007 2006 % Change 2007 2006 % Change MDC EBITDA Strategic Marketing Services s 93 $ 17 206 % $ 161 $ 158 20 % Customer Relationship Management 20 14 42.7 % 42 3.0
Slide 10: Cash EPS Reconciliation
MDC(K)PARTNERS Cash EPS Reconciliation (USS in millions) Three Months Ended June 30, ‘Six Months Ended June 30, 2007 2006 2007 2006 ‘Loss from Continuing Operations (20) ($1.0) ra) 54) Depreciation & Amortization 74 55 13.9 12.7 Stock Based Compensation 16 18 35: 53 ‘Non-cash Unrealized Foreign Exch
Slide 11: Free Cash Flow
MDC(K)PARTNERS Free Cash Flow Three Months Ended June 30, Six Months Ended June 30, (US$ in millions) 2007 2006 2007 2006 MDC EBITDA $76 $64 $12.0 $13.7 Capital Expenditures G8) (63) 75) (113) Cash Taxes 05) (0.5) (0) 9) Cash Interest 2.0) G3) (3) aD Free Cash Flow $13 (3D ($1.8) ($3.2) Cash flow fr
Slide 12: Liquidity
11 MDC(K)PARTNERS Liquidity Available Liquidity at June 30, 2007 (US$ in nillions) Commitment Under Facility Revolver Term Loan A Delayed Draw Term Loan E 822 Letters of Credit 33 Funds Available Under Facility $ 975 Available Cash 3.0 Liquidity $ 1005
Slide 13: Potential Contractual Put/Call Obligations and Impact on EBITDA
12 MDC(K)PARTNERS Potential Contractual Put/Call Obligations and Impact on EBITDA Estimated Put Impact at June 30, 2007 Cumulative Payment Consideration Incremental ‘Net Consideration (USS in millions) Cash Stock Total EBITDA in Period EBITDA (Paid) / Received 2007 $9.1 $1.0 $10.1 $3.0 $3.0 (7.1) 20
Slide 14: 2007 Financial Outlook
13 MDC(K)PARTNERS 2007 Financial Outlook (USS in millions, except per share mount) “Marketing Corporate Communications Expenses Consolidated Revenue $490 - $500 - $490 - $500 MDC's Share of EBITDA $59.5 - $60.5 $19.5 - $20.5 $39.0-$41.0 Cash EPS © $1.28 -$132 Free Cash Flow © $15.0-$17.0 Shares Outs
Slide 15: Appendix
Appendix MDC(K)PARTNERS
Slide 16: Quarter Ended June 30, 2007 MDC Adjusted EBITDA Reconciliation
15 MDC(K)PARTNERS Quarter Ended June 30, 2007 MDC Adjusted EBITDA Reconciliation ‘MDC PARTNERS INC. RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA (USS in 000s) For the Three Months Ended June 30, 2007 Strategic Customer’ Specialized ‘Marketing Relationship Communication Corporate & Services Ma
Slide 17: Quarter Ended June 30, 2006 MDC Adjusted EBITDA Reconciliation
16 Quarter Ended June 30, 2006 MDC Adjusted EBITDA Reconciliation MDC(K)PARTNERS MDC PARTNERS INC. RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA. (USS in 0005) For the Three Months Ended June 30, 2006 Strategic Customer Specialized Marketing Relationship Communication Corporate & Services __Ma
Slide 18: YTD June 30, 2007 MDC Adjusted EBITDA Reconciliation
17 YTD June 30, 2007 MDC Adjusted EBITDA Reconciliation MDC(K)PARTNERS ‘MDC PARTNERS INC. RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA (USS in 000s) For the Six Months Ended June 30, 2007 Strategic Customer Specialized Marketing Relationship Communication Corporate & Services Management Servi
Slide 19: YTD June 30, 2006 MDC Adjusted EBITDA Reconciliation
18 MDC(K)PARTNERS YTD June 30, 2006 MDC Adjusted EBITDA Reconciliation MDC PARTNERS INC. RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA (USS in 000s) For the Six Months Ended June 30, 2006 Strategic Customer Specialized ‘Marketing Relationship Communication Corporate & Services Management Servi
Slide 20: Definition of Non-GAAP Measures
19 - EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and + Organic Growth: Organic revenue growth is a non-GAAP measure that refers to growth in revenues - Cash Earnings: Cash earings is a non-GAAP measure that represents loss from continuing operations » Fre