OmnicomGroup
2006 Analyst Presentation
February 2006
Exhibit 99.1
The following materials have been prepared for use in various analysts’ conferences during the first quarter of 2006.
Forward-Looking Statements
Certain of the statements in this document constitute forward-looking statements within the meaning of the Private Securities
Litigation Act of 1995. These statements relate to future events or future financial performance and involve known and unknown
risks and other factors that may cause our actual or our industry’s results, levels of activity or achievement to be materially
different from those expressed or implied by any forward-looking statements. These risks and uncertainties include, but are not
limited to, our future financial condition and results of operations, changes in general economic conditions, competitive factors,
changes in client communication requirements, the hiring and retention of human resources and our international operations,
which are subject to the risks of currency fluctuations and exchange controls. In some cases, forward-looking statements can
be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,”
“estimate,” “predict,” “potential” or “continue” or the negative of those terms or other comparable terminology. These statements
are present expectations. Actual events or results may differ materially. We undertake no obligation to update or revise any
forward-looking statement.
Other Information
All dollar amounts are in millions except for EPS. The following financial information contained in this document has not been
audited, although some of it has been derived from Omnicom’s historical financial statements, including its audited financial
statements. In addition, industry, operational and other non-financial data contained in this document has been derived from
sources we believe to be reliable, but we have not independently verified such information, and we do not, nor does any other
person, assume responsibility for the accuracy or completeness of that information.
The inclusion of information in this presentation does not mean that such information is material or that disclosure of such
information is required.
1
Who We Are
The World’s Leading
Advertising and Marketing
Communications Services
Group
2
OmnicomGroup
Traditional
Media Advertising
Customer Relationship
Management
Public
Relations
Specialty
Communications
30+ Advertising & Marketing Disciplines
150+ Strategic Brand Platforms
1500+ Individual Agencies
3
Industry-Specific Trends
Industry consolidation
Creation of pan-regional and
global Marketing Services
Networks
Media fragmentation…
increased interactive initiatives
Integration of Interactive and
Traditional Creative approaches
to clients needs
Long-Term Trends
Client-Specific Trends
Desire to manage brands
on a pan-regional or global basis
Reduction in service partners
Greater coordination
of advertising with other
marketing initiatives
Renewed client M&A activity
Increased Focus on Return on
Investment
4
Factors Impacting 2006
Clients shifting focus back to top-line growth
Increase in new business activity
Shift in media spending
Corporate merger activity picking up
Economic climate improved
Maintain focus on internal systems and cost savings initiatives
5
Objectives
Maintain the leadership positions of our brands
Achieve double digit Revenue and EPS growth
Improve our operating margins
Use free cash flow to enhance shareholder value
Make selective accretive acquisitions that allow us to further
extend our strategic advantages in non-traditional advertising
and in emerging markets
Continued coordination of multi-agency offering for current and
potential clients
Continue to increase our investment in training and the
development of our people
Further increase the flexibility of our cost structure
6
OmnicomGroup
7
Financial Review
8
2005 vs. 2004 P&L Summary
9
2005
2004
%
Change
Revenue
10,481.1
$
9,747.2
$
7.5%
Operating Income
1,339.8
1,215.4
10.2%
% Margin
12.8%
12.5%
Net Interest Expense
59.2
36.6
Profit Before Tax
1,280.6
1,178.8
8.6%
% Margin
12.2%
12.1%
Taxes
435.3
396.3
% Tax Rate
34.0%
33.6%
Profit After Tax
845.3
782.5
8.0%
Equity in Affiliates/
Minority Interest
(54.6)
(59.0)
Net Income
790.7
$
723.5
$
9.3%
EPS
4.36
3.88
12.4%
Full Year
2005 Revenue Growth
(a) Organic revenue is calculated by subtracting both the acquisition revenue and the FX impact from total revenue growth.
(b) Acquisition revenue is the aggregate of the applicable prior period revenue of the acquired businesses. Netted against this number is the revenue of any business
included in the prior period reported revenue that was disposed of subsequent to the prior period.
(c) 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 difference between the current period revenue in U.S. dollars and the current period revenue in constant
currency.
10
$
%
$
%
$
%
Prior Period Revenue
9,747.2
$
5,223.4
$
4,523.8
$
Organic Revenue (a)
709.4
7.3%
467.9
9.0%
241.5
5.3%
Acquisition Revenue (b)
(28.8)
-0.3%
52.6
1.0%
(81.4)
-1.8%
Foreign Exchange (FX) Impact (c)
53.3
0.5%
N/A
N/A
53.3
1.2%
Current Period Revenue
10,481.1
$
7.5%
5,743.9
$
10.0%
4,737.2
$
4.7%
Total Company
United States
International
2005 Revenue Mix
Advertising
43.8%
PR
10.0%
CRM
34.5%
Specialty
11.7%
United
States
54.8%
Euro
Markets
20.6%
UK
10.5%
Other
14.1%
By Discipline
By Geography
Advertising
CRM
PR
Specialty
4,589.0
3,613.0
1,045.7
1,233.4
9.1%
6.8%
2.1%
8.9%
$ Mix
% Growth(a)
United States
Euro Markets
United Kingdom
Other
5,743.9
2,156.5
1,102.4
1,478.3
10.0%
4.8%
1.6%
7.1%
$ Mix
% Growth(a)
(a) “Growth” is the year-over-year growth from the prior period. Certain reclassifications have been made to the December 31, 2004 presentation to conform the
numbers to the December 31, 2005 balances presented.
11
Financial Objectives
Consistent industry leading long-term financial performance
Maximize operating efficiency
Maximize investments in People, Technology and Developing
Markets (Both Emerging Regions & Emerging Disciplines)
Make selective acquisitions to accelerate and supplement our
internal development
Maintain a conservative and efficient capital structure
Double digit growth in Revenue and EPS
12
Revenue
Operating Income
Net Income
Earnings Per Share
(a) 2001 results are adjusted to assume that the cessation of goodwill amortization occurred on January 1, 2001.
All periods presented, beginning with 1995, include the effect of the adoption of Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based
Compensation.
Financial Performance(a)
2005 $1,340
2004 $1,215
Growth 10.2%
2005 $10,481
2004 $9,747
Growth 7.5%
2005 $791
2004 $724
Growth 9.3%
2005 $4.36
2004 $3.88
Growth 12.4%
13
OmnicomGroup
14
