Investor Presentation
for the periods ended
September 30, 2004
Forward Looking Statements and Other Information
This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to buy securities of MDC Partners
Inc. (“MDC”). This presentation is confidential and is being made available to a limited number of parties on a confidential basis. By
acceptance hereof, recipients agree that they will not transmit, reproduce or make available to anyone this presentation or any information
contained therein.
This presentation contains certain forward-looking financial information which has been prepared by management of MDC without audit or
review by independent auditors and is based on management's judgment of the most likely set of industry and economic results and
conditions and MDC's intended course of action under those conditions as of November 4, 2004. The assumptions used in the preparation of
this information, although considered reasonable by management of MDC at the time of preparation, may prove to be incorrect. Recipients
are cautioned that the information is based on assumptions as to many factors and that there is a significant risk that actual results will vary
from the results forecast and such variations may be material. There is no representation by MDC that actual results achieved during the
forecast period will be the same in whole or in part as those forecast.
Recipients acknowledge that the outstanding Class A subordinate voting shares of MDC are listed on the Toronto Stock Exchange and the
NASDAQ National Market and that MDC is a reporting issuer or its equivalent for purposes of the securities laws of Canada and the United
States. Such securities laws prohibit any person who has material non-public information concerning an issuer from purchasing or selling
securities of such issuer or from communicating such information to any other person other than in the ordinary course of business.
Recipients acknowledge and agree that they and their representatives will comply with all such securities laws in connection with any trade or
purchase of any securities of MDC.
11/4/04
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3rd Quarter Accomplishments
Successfully executed $100 million refinancing
Acquisitions
Zig
Vitro Robertson
Bruce Mau – Massive Change
Crispin Porter + Bogusky
Burger King – client market share gains continues / robust same
store sales growth / radically enhanced brand awareness
Global launch of Mini
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3rd Quarter ’04 Financial Highlights:
Revenue increased 33% to $86.3 million
Organic growth increased 8.7% for the quarter and 12.8% for the
YTD period
New business wins in the 3rd quarter represent incremental
annualized revenue of $10 million
Reduced the weighted average cost of borrowing by 250 basis
points
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45.7%
$215,551
50.8%
$77,450
2004 period Revenue
12.8
18,994
8.7
4,487
Organic Revenue (c)
2.4
3,603
2.2
1,117
Foreign Exchange (b)
30.4%
45,025
39.9%
20,503
Acquisition Revenue (a)
$147,929
$51,343
2003 period Revenue
YTD
3rd Quarter
Marketing
Communications
Revenue Growth* ($US 000’s)
(a) Acquisition revenue is the revenue from acquired businesses less the revenue from businesses divested
(b) Foreign exchange is calculated by comparing the revenue translated into US dollars using the current rate, compared to the historic rate
(c) Organic revenue is equal to the total revenue growth less growth from acquisitions and foreign exchange
*Combined results
4
* Combined Marketing Communications
5
Marketing Communications EBITDA* For Non-Recurring Items
3rd Qtr. ‘04
YTD 9/30/04
EBITDA for Marketing Communications
$8,011
$21,637
Operating losses of non-core mktg unit
1,261
4,531
Start-up spending
572
1,158
EBITDA, as adjusted
$9,844
$27,326
A Proven Platform Marketing
Communications* (YTD 3Q ’04)
29 brands providing marketing
services in the U.S., Canada and
Europe
50 Offices
Strategically focused on high growth,
through-the-line communications
Strong, well-diversified blue-chip
clientele:
More than 500 clients
Diversification of industries
Top 10 clients represent
34% of revenue
Top 15 clients represent
38% of revenue
Broad range of services
Revenues by
Service
Revenues*
by Geography
Revenues by
Industry
55%
45%
Specialized
Advertising & Integrated
78%
18%
4%
USA
Canada
UK
41%
23%
11%
6%
5%
1%
13%
Consumer/retail
Telecom/media
Financial services
Healthcare
Automotive
Agriculture
Other
*Combined Results
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High Quality Brands
MDC’s Mandate
Partnering with great firms who have a passion to do great
work for great clients that helps them grow their business
Fundamental need for effective marketing communications
is more critical everyday - MDC is delivering on that need
Clients understand the difference between institutionalized
mediocrity and tomorrow’s innovative solutions
MDC’s financial success will be the result of these principles
combined with disciplined cost management
8
New Business since September 30th
Zig
Molson
Unilever
Kirshenbaum Bond
High-end beverage marketer
Bruce Mau
World Trade Center Performing Arts Center
Major US based retailer
Accent (CRM)
Major US based wholesale shopping club
Sprint
Marketing (Sales Promotion)
JP Morgan Chase
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Acquisition Focus
Industry
Hispanic & Multi-Cultural
High-end marketing
Interactive
Public Relations
Geographic
Primary focus is the United States
Opportunities in Canada and Europe continue to be explored
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