Omnicom : Q2 2021 Investor Presentation

Second Quarter 2021 Results

July 20, 2021

Investor Presentation

2021 vs. 2020 P&L Summary Second Quarter

		Second Quarter
		2021 (a)			2020 (b)
Revenue	$	3,571.6	$	2,800.7
Operating Expenses (c)		3,003.2			2,738.2
Operating Profit		568.4			62.5
Net Interest Expense		73.5			47.2
Income Tax Expense		123.2			21.9
Tax Rate %		24.9 %			143.1 %
Loss From Equity Method Investments		(0.1)			(7.8)
Net Income Attributed To Noncontrolling Interests		23.4			9.8
Net Income (Loss) - Omnicom Group Inc.	$	348.2		$	(24.2)
Diluted Shares (millions)		217.1			215.4
Earnings per Share - Diluted	$	1.60	$	(0.11)
Dividends Declared Per Common Share	$	0.70	$	0.65

1. During the second quarter of 2021, we recorded a gain on the disposition of subsidiary, which increased Operating Profit and Net Income - Omnicom Group Inc. by $50.5 million for the three months ended June 30, 2021. Additionally, Net Interest Expense during the second quarter of 2021 included a $26.6 million charge related to the early extinguishment of our 2022 Senior Notes, which decreased Net income - Omnicom Group Inc. by $19.5 million for the three months ended June 30, 2021. The net impact of these items increased Earnings per Share - Diluted by $0.14 per share for the three months ended June 30, 2021.
2. During the second quarter of 2020, we recorded expenses for certain repositioning actions related to the realignment of our businesses in reaction to the COVID-19 pandemic. The impact of these items decreased Operating Profit by $277.9 million, Net Income - Omnicom Group Inc. by $223.1 million and Earnings per Share - Diluted by $1.03 per share for the three months ended June 30, 2020.
3. Additional information on our operating expenses can be found on page 3.

July 20, 2021

1

2021 vs. 2020 P&L Summary Year to Date

		Year to Date
		2021 (a)			2020 (b)
Revenue	$	6,998.6	$	6,207.6
Operating Expenses (c)		5,964.8			5,724.9
Operating Profit		1,033.8			482.7
Net Interest Expense		121.0			93.0
Income Tax Expense		235.2			119.3
Tax Rate %		25.8 %			30.6 %
Loss From Equity Method Investments		(0.1)			(13.0)
Net Income Attributed To Noncontrolling Interests		41.5			23.4
Net Income - Omnicom Group Inc.	$	636.0		$	234.0
Diluted Shares (millions)		217.0			216.5
Earnings per Share - Diluted	$	2.93	$	1.08
Dividends Declared Per Common Share	$	1.40	$	1.30

1. During the second quarter of 2021, we recorded a gain on the disposition of subsidiary, which increased Operating Profit and Net Income - Omnicom Group Inc. by $50.5 million for the six months ended June 30, 2021. Additionally, Net Interest Expense during the second quarter of 2021 included a $26.6 million charge related to the early extinguishment of our 2022 Senior Notes, which decreased Net income - Omnicom Group Inc. by $19.5 million for the six months ended June 30, 2021. The net impact of these items increased Earnings per Share - Diluted by $0.14 per share for the six months ended June 30, 2021.
2. During the second quarter of 2020, we recorded expenses for certain repositioning actions related to the realignment of our businesses in reaction to the COVID-19 pandemic. The impact of these items decreased Operating Profit by $277.9 million, Net Income - Omnicom Group Inc. by $223.1 million and Earnings per Share - Diluted by $1.03 per share for the six months ended June 30, 2020.
3. Additional information on our operating expenses can be found on page 3.

July 20, 2021

2

Operating Expense Detail

Second Quarter

Year to Date

Revenue

Operating expenses:

Salary and service costs: Salary and related service costs Third-party service costs (c) Occupancy and other costs Gain on disposition of subsidiary COVID-19 repositioning costs

Cost of services

Selling, general and administrative expenses

Depreciation and amortization

Total operating expenses

Operating Profit

2021

• 3,571.6
  1,721.7
  881.4
  293.9
  (50.5)
  -
  2,846.5

103.2

53.5

3,003.2

• 568.4

% of 2020 (a)(b)

Rev

• 2,800.7

48.2 %		1,424.7
24.7 %		606.4
8.2 %		290.0
(1.4)%		-
n/a	277.9
		2,599.0
2.9 %		82.1
1.5 %		57.1
84.1 %		2,738.2
$	62.5

• of Rev

50.9 %

21.7 %

10.4 % n/a 9.9 %

2.9 %

2.0 %

97.8 %

2021

• 6,998.6
  3,370.9
  1,777.2
  585.5
  (50.5)
  -
  5,683.1

174.9

106.8

5,964.8

• 1,033.8

% of 2020 (a)(b)

Rev

• 6,207.6

48.2 %		3,067.1
25.4 %		1,497.3
8.4 %		599.6
(0.7)%		-
n/a	277.9
		5,441.9
2.5 %		168.9
1.5 %		114.1
85.2 %		5,724.9
$	482.7

• of Rev

49.4 %

24.1 %

9.7 % n/a 4.5 %

2.7 %

1.8 %

92.2 %

1. COVID-19repositioning costs for the second quarter and year to date 2020 periods include expenses for certain repositioning actions related to the realignment of our businesses in reaction to the COVID-19 pandemic. The impact of these items increased operating expenses by $277.9 million for the three months and six months ended June 30, 2020.
2. Salary and service costs for the second quarter and year to date 2020 periods include the reduction $49.2 million in operating expenses related to reimbursements and tax credits under government programs in several countries where we have operations.
3. Third-partyservice costs are expenses paid to third-party vendors incurred primarily in connection with performance obligations for our services where we have determined that we are acting as principal. These third-party expenses also include incidental costs incurred in the performance of our services including airfare, mileage, hotel and out-of-town expenses, etc.

July 20, 2021

3

2021 Total Revenue Change

		Second Quarter				Year to Date
		$		% ∆			$		% ∆
Prior Period Revenue	$	2,800.7				$	6,207.6
Foreign exchange rate impact (a)
	150.8	5.4 %				246.5	4.0 %
Acquisition revenue, net of disposition revenue (b)
	(62.0)	(2.2)%				(77.0)	(1.2)%
Organic growth (c)
	682.1	24.4 %				621.5	10.0 %
Current Period Revenue	$	3,571.6	27.5 %		$	6,998.6	12.7 %

1. Foreign exchange rate impact: calculated by translating the current period's local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue.
2. Acquisition revenue, net of disposition revenue: Acquisition revenue is calculated as if the acquisition occurred twelve months prior to the acquisition date by aggregating the comparable prior period revenue of acquisitions through the acquisition date. As a result, acquisition revenue excludes the positive or negative difference between our current period revenue subsequent to the acquisition date and the comparable prior period revenue and the positive or negative growth after the acquisition date is attributed to organic growth. Disposition revenue is calculated as if the disposition occurred twelve months prior to the disposition date by aggregating the comparable prior period revenue of disposals through the disposition date. The acquisition revenue and disposition revenue amounts are netted in the presentation above.
3. Organic growth: calculated by subtracting the foreign exchange rate impact, and the acquisition revenue, net of disposition revenue components from total revenue growth.

July 20, 2021

4