Slide 1: Management Presentation: Second Quarter 2008 Results
Management Presentation July 30, 2008 Second Quarter 2008 Results MDC(K)PARTNERS
Slide 2: Forward Looking Statements and Other Information
MDC(K)PARTNERS Forward Looking Statements and Other Information This presentation, including our “2008 Financial Outlook”, contains forward-looking statements. The Company's representatives may also make forward. looking statements orally fiom time to time. Statements ia this presentation that are a
Slide 3: Summary of Consolidated Results
Summary of Consolidated Results MDC(K)PARTNERS ‘Three Months Ended June 30, Six Months Ended June 30, 2008, 2007 % Change 2008 2007 % Change Revenue $ 1583 $ 1345 17 % S$ 3010 § 2526 19.2 % Operating Expenses Cost of services sold 104.0 859 211% 2012 102.8 BS % SG&A 375 352 65 % Ba 4 68 % D&A 87 59
Slide 4: Revenue by Segment
(S$ inition) MDC(K)PARTNERS Three Months Ended June 30, Amounts and percenages may not foot due 0 rowsding ‘Six Months Ended June 30, 2008 2007 % Change 2008 2007 % Change Revenue ‘Strategic Marketing Services $888 $ 784 122% $ 1668 $ 1490 9% Customer Relationship Management 368 257 aS % ns 492 62%
Slide 5: Quarter Revenue Growth by Segment
MDC(K)PARTNERS Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services Services Total Acquisition Growth 1.9% a 11% 1% Foreign Exchange Growth 1.0% 02% 44% 15% Total B2% 43.5% 15% 17.7%
Slide 6: Year to Date 2008 Revenue Growth by Segment
Year to Date 2008 Revenue Growth by Segment MDC(K)PARTNERS Strategic Customer Specialized Weighted Marketing Relationship Communication Average Services ‘Management Services Total Acquisition Growth 3.9% P 07% 24% Foreign Exchange Growth 12% -03% 6.2% 21% Total 11.9% 45.2% 15.4% 19.2%
Slide 7: Summary of Segment Results — EBITDA
MDC(K)PARTNERS Summary of Segment Results — EBITDA (05S somstions) Three Months Ended June 30, Six Months Ended June 30, 2008 2007 % Change 2008 2007 % Change EBITDA Strategic Marketing Services S145 $ 132 100 % S$ 230 $ 233 (13) % margin 16.4% 16.8% 138% = 15.6% Customer Relationship Management 42
Slide 8: Summary of Segment Results — MDC's Share of EBITDA
MDC(K)PARTNERS Summary of Segment Results — MDC’s Share of EBITDA (©38inmitions ‘Three Months Ended June 30, Six Months Ended June 30, 2008 2007 %6 Change 2008 2007 %6 Change MDC EBITDA ‘Strategic Marketing Services s 27 $ 90 420% S 25 $ 153 BI % Customer Relationship Management 41 20 1047 % WW 40 7
Slide 9: Free Cash Flow
Free Cash Flow MDC(K)PARTNERS Three Months Ended June 30, Six Months Ended June 30, (USS in millions) 2008 2007 2008 2007 MDC EBITDA $15.8 $9.6 $25.6 $151 Capital Expenditures (44) G8) (86) (73) Cash Taxes 0.6) 5) (09) (1.0) Cash Interest, net 42) (1.6) 6D (5.0) Amounis and percentages may not fot d
Slide 10: Liquidity Profile
MDC(K)PARTNERS Liquidity Profile Available Liquidity at June 30, 2008 (CSS inmting Commitment Under Facility 185.0 Revolver 68 Term Loan A 60.0 Delayed Draw Term Loan B 515 1183 Letters of Credit 46 Funds Available Under Facility $621 Available Cash 88 Liquidity $709
Slide 11: Temporal Put Obligations and Impact on EBITDA
10 MDC(K)PARTNERS Temporal Put Obligations and Impact on EBITDA Estimated Put Impact at June 30, 2008 Payment Consideration Incremental GSinmitons) Cash Stock______Total_EBITDA in Period_ 2008 $81 $03 $84 $2.6 2009 20 09 29 07 2010 266 39 325 33 2011 aa 12 33 15 2012 - 2015 153 28 18.1 43 Total $541
Slide 12: 2008 Financial Outlook
11 MDC(K)PARTNERS 2008 Financial Outlook Revenue MDC's Share of EBITDA Free Cash Flow ‘Note: See appendix for definitions of non-GAAP measures.
Slide 13: Appendix
Appendix MDC(K)PARTNERS
Slide 14: Revenue Outlook ($US Millions)
13 $US Millions $700 $600 $500 $400 $300 $200 $100 $600-$610 MDC(K)PARTNERS $301 $0 + 2006A 2007A Note: CAGR calculated based on the mid-point of the projected range. 2008P YTD 2008
Slide 15: MDC's Share of EBITDA Outlook ($US Millions)
14 $US Millions MDC(K)PARTNERS ae $61-$64 2006A 2007A 2008P YTD 2008 Note: CAGR calculated based on adjusted amounts and the mid-point of the projected range. li Reported m Adjusted
Slide 16: Corporate Cost Reduction Trend
15 MDC(K)PARTNERS Corporate Cost Reduction Trend $US Millions $25 $22.5 $20 $19.1 $15 $15.5 $14.0 $10 $6.9 $5 L $0 +4 T T : . 1 2005 2006A 2007A 2008P YTD 2008 Note: Beginning in 2007 certain members of the corporate group were permanently assigned to certain segments of the business resulting in th
Slide 17: Definition of Non-GAAP Measures
16 MDC(K)PARTNERS Definition of Non-GAAP Measures - EBITDA: EBITDA is a non-GAAP measure, that represents operating profit plus depreciation and amortization and stock-based compensation - MDC’s Share of EBITDA: MDC's Share of EBITDA is a non-GAAP measure, that represents operating profit plus depre