2024 First Quarter

April 16, 2024

Highlights

Revenue

  • 4.0% organic revenue growth in Q1 2024
  • Advertising & Media +7.0%, Precision Marketing +4.3% in Q1 2024
  • Tailwind of +1.5% in Q1 2024 from net acquisitions & dispositions

Business update

    • Flywheel Digital is successfully integrating into our Omni platform
    • Significant new e-commerce capabilities and data signals allow Omnicom to deliver a unique combination of marketing and sales solutions
    • Recent business wins, new business opportunities, the Olympics, and U.S. elections support our 2024 outlook
  2. See Non-GAAP reconciliations on pages 18 - 20.

Income

  • Operating income $478.9 million (13.2% margin). EBITA $500.4 million (13.8% margin)
    +4.1% from prior year non-GAAP adjusted EBITA(i)
  • Reported diluted EPS of $1.59. Non-GAAP
    adjusted diluted EPS of $1.67, up 3.7% from prior year(i)

Capital allocation

  • Acquisition of Flywheel Digital for $845 million, financed with $643 million of debt
  • $180.1 million in share repurchases and $138.8 million in common dividends paid in Q1 2024
  • 44.3% Return on Equity and 22.3% Return on Invested Capital for the 12 months ended March 31, 2024

2

Income Statement Summary

First Quarter

2024

2023

Revenue

$

3,630.5

$

3,443.3

Operating Expenses (a)

3,151.6

3,096.8

Operating Income

478.9

346.5

Net Interest Expense

26.8

19.3

Income Tax Expense(b)

116.0

83.4

Income from Equity Method Investments

0.9

0.1

Net Income Attributed to Noncontrolling Interests

18.4

16.4

Net Income - Omnicom Group Inc.(a)(b)

$

318.6

$

227.5

Diluted Shares

200.1

204.5

Net Income per Share - Diluted(a)(b)

$

1.59

$

1.11

Non-GAAP Adjusted Net Income per Share - Diluted(a)(b)(5)

$

1.67

$

1.61

Dividends Declared Per Common Share

$

0.70

$

0.70

In millions except per share amounts. See Notes on page 13 and non-GAAP reconciliations on pages 17 to 20.

3

Revenue Change

First Quarter

$% ∆

Prior Period Revenue

$

3,443.3

Foreign exchange rate impact(1)

(2.7)

(0.1)%

Acquisition revenue, net of disposition revenue(2)

53.0

1.5 %

Organic growth(3)

136.9

4.0 %

Current Period Revenue

$

3,630.5

5.4 %

In millions. See Definition (1) through (3) on page 13.

4

Revenue by Discipline

First Quarter

% Organic

Revenue

% of Rev

% Growth

Growth(3)

Advertising & Media

$

1,906.8

52.5 %

7.3 %

7.0 %

Precision Marketing

438.2

12.1 %

21.7 %

4.3 %

Public Relations

390.3

10.8 %

3.9 %

(1.1)%

Healthcare

323.6

8.9 %

1.6 %

2.1 %

Branding & Retail Commerce

200.2

5.5 %

(4.5)%

(3.8)%

Experiential

159.9

4.4 %

8.2 %

9.5 %

Execution & Support

211.5

5.8 %

(17.2)%

(4.3)%

Total

$

3,630.5

100.0 %

5.4 %

4.0 %

In millions. See Definition (3) on page 13. Precision Marketing discipline includes Flywheel Digital.

5

Revenue by Region

First Quarter

% Organic

Revenue

% of Rev

% Growth

Growth(3)

United States

$

1,925.9

53.0 %

6.3 %

4.3 %

Other North America

115.0

3.2 %

0.3 %

1.1 %

United Kingdom

403.2

11.1 %

8.5 %

3.2 %

Euro Markets & Other Europe

602.6

16.6 %

3.8 %

3.5 %

Asia Pacific

407.7

11.2 %

0.5 %

3.0 %

Latin America

96.5

2.7 %

30.4 %

22.3 %

Middle East & Africa

79.6

2.2 %

(6.2)%

(4.2)%

Total

$

3,630.5

100.0 %

5.4 %

4.0 %

In millions. See Definition (3) on page 13.

6

Revenue by Industry Sector

First Quarter

2024

2023

Pharmaceuticals & Healthcare

16%

16%

Food & Beverage

16%

16%

Auto

11%

11%

Consumer Products

9%

8%

Technology

7%

8%

Financial Services

7%

8%

Travel & Entertainment

7%

7%

Retail

6%

6%

Telecommunications

4%

4%

Government

4%

4%

Services

3%

3%

Oil, Gas & Utilities

2%

2%

Education

1%

1%

Not-for-Profit

1%

1%

Other

6%

5%

Total

100%

100%

Note: Prior year period amounts conform to the current period presentation.

7

Operating Expense Detail

First Quarter

2024

% of Rev

2023

% of Rev

Revenue

$

3,630.5

$

3,443.3

Operating expenses:

Salary and related costs

1,847.3

50.9 %

1,778.0

51.6 %

Third-party service costs(c)

698.2

19.2 %

639.3

18.6 %

Third-party incidental costs(d)

147.1

4.1 %

125.6

3.6 %

Total salary and service costs

2,692.6

2,542.9

Occupancy and other costs

314.1

8.7 %

291.6

8.5 %

Real estate repositioning costs(a)

-

- %

119.2

3.5 %

Cost of services

3,006.7

2,953.7

Selling, general and administrative expenses

85.3

2.3 %

89.2

2.6 %

Depreciation and amortization

59.6

1.6 %

53.9

1.6 %

Total operating expenses

3,151.6

86.8 %

3,096.8

89.9 %

Operating Income(a)

$

478.9

$

346.5

In millions. See Notes on page 13.

8

Income Statement Summary - Non-GAAP Adjusted

First Quarter

Reported

Reported

Non-GAAP

Non-GAAP

Adjustments

Adjusted 2023

2024

2023

Revenue

$

3,630.5

$

3,443.3

$

-

$

3,443.3

Operating Expenses:

Real estate repositioning costs(a)

119.2

(119.2)

-

Operating Expenses(a)

3,151.6

3,096.8

(119.2)

2,977.6

Operating Income(a)

478.9

346.5

465.7

Operating Income Margin %

13.2 %

10.1 %

13.5 %

Net Interest Expense

26.8

19.3

-

19.3

Income Tax Expense(b)

116.0

83.4

28.2

111.6

Income Tax Rate

25.7 %

25.5 %

25.0 %

Income from Equity Method Investments

0.9

0.1

-

0.1

Net Income Attributed to Noncontrolling Interests

18.4

16.4

-

16.4

Net Income - Omnicom Group Inc.(a)(b)

$

91.0

$

318.5

$

318.6

$

227.5

Net Income per Share - Diluted(a)(b)

$

1.59

$

1.11

$

1.56

Non-GAAP Measures:

EBITA(5)

$

500.4

$

361.3

$

119.2

$

480.5

EBITA Margin %

13.8 %

10.5 %

14.0 %

Reported Net Income per Share - Diluted(a)(b)

$

1.59

$

1.11

$

1.11

After-tax amortization per diluted share(5)

$

0.08

$

0.05

Real estate repositioning costs (after-tax) per diluted share(a)(b)

$

0.45

Non-GAAP Adjusted Net Income per Share - Diluted(5)

$

1.67

$

1.61

In millions except per share amounts. See Notes on page 13 and Non-GAAP reconciliations on pages 17 - 20.

9

Cash Flow Performance

Three Months March 31,

2024 2023

Free Cash Flow(4)

$

Primary Uses of Cash:

Dividends paid to Common Shareholders

Dividends paid to Noncontrolling Interest Shareholders

Capital Expenditures

Acquisition payments, including payment of contingent purchase price obligations, and acquisition of additional noncontrolling interests

Stock Repurchases, net of Proceeds from Stock Plans

Primary Uses of Cash(4)

Net Free Cash Flow(4)

$

415.1

$

428.9

138.8

142.3

13.3

12.5

23.1

23.1

812.4

38.4

178.0

278.8

1,165.6

495.1

(750.5)

$

(66.2)

In millions. See Definition (4) on page 13 and Non-GAAP reconciliations on pages 17 - 20.

10

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Omnicom Group Inc. published this content on 16 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2024 20:30:45 UTC.