Omnicom Group Inc. is a strategic holding company that offers a comprehensive range of advertising, marketing, and corporate communications services to some of the world's largest companies **[0000029989-24-000007_omc-20231231.htm:28]** **[0000029989-24-000007_omc-20231231.htm:8]**. The company's service offerings encompass advertising, media planning and buying, precision marketing, public relations, healthcare marketing, branding and retail commerce, experiential marketing, and execution and support services **[0000029989-24-000007_omc-20231231.htm:28]** **[0000029989-24-000007_omc-20231231.htm:8]**. Omnicom operates through a portfolio of global networks and practice areas, such as BBDO, DDB, TBWA, and Omnicom Media Group, which integrate their services across various disciplines **[0000029989-24-000007_omc-20231231.htm:28]** **[0000029989-24-000014_omc-20240331.htm:17]**. The company's client-centric business model focuses on expanding service offerings to existing clients, entering new markets, and acquiring complementary companies **[0000029989-24-000007_omc-20231231.htm:8]**.

1. **Advertising & Media** - Provides comprehensive advertising services, including media planning and buying, to effectively reach target audiences.
2. **Precision Marketing** - Delivers targeted marketing strategies that leverage data and analytics to enhance customer engagement.
3. **Public Relations** - Manages communication strategies to build and maintain a positive public image for clients.
4. **Healthcare Marketing** - Specializes in marketing solutions tailored to the healthcare industry, focusing on patient and provider engagement.
5. **Execution & Support** - Offers a range of support services to ensure the successful implementation and execution of marketing campaigns.
6. **Branding & Retail Commerce** - Develops branding strategies and retail solutions to enhance consumer experiences and drive sales.
7. **Experiential Marketing** - Creates immersive marketing experiences that engage consumers through interactive and memorable events.

b8bd1a889e75937ff08e1c6399874c0b18e330732f95543156dbd7ceef286ec7

137651f5b330345ecdc39bc5111d5b5009d71747dc881f85cd5826b1a5252418

71ec756ff1dc0faec4b8f4cbc52163d67cc10e41080f9cca0a2fda6b61ff765d

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | N/A             |
| End Date/Duration        | N/A             |
| Total additional amount  | N/A             |
| Remaining authorization  | N/A             |
| Details                  | **1,203,570 shares** repurchased at **$93.67** per share for general corporate purposes.  **[0000029989-24-000027_omc-20240930.htm:49]**  |

3ca486cd377bf9152f96d98a1c22b209ff9ec93c725c38dc3c244f186a0df80b

df3f027b61445a015b0f06f9c1bceb0440104ea1e8d8adbcf9188603196c3f22

1. Despite your strong organic growth of **6.5%** in Q3 2024  **[OMC_3402843_4]** , **Precision Marketing** only grew by **1%**  **[OMC_3402843_4]** , and **Branding and Retail Commerce** declined by **5%**  **[OMC_3402843_4]** . What specific strategies are you implementing to address the weaknesses in these segments, and how confident are you about turning around performance in these areas?

2. You've mentioned significant investments in **AI** and technology, including acquisitions like **Flywheel** and **LeapPoint**  **[OMC_3402843_3]** , but these investments also come with increased costs  **[OMC_3402843_9]** . How do you plan to balance these ongoing investments with your objective of achieving margin expansion and returning to double-digit EPS growth?

3. With a total debt of **$6.9 billion**  **[OMC_3402843_6]**  and cash equivalents of only **$0.5 billion**  **[OMC_3402843_6]** , are you concerned about your leverage levels, especially after funding acquisitions like **Flywheel**  **[OMC_3402843_6]** ? How do you plan to manage your debt obligations in a rising interest rate environment?

4. While you're optimistic about recent business wins like **Amazon's media business** and **Michelin's global media**  **[OMC_3402843_2]** , significant market uncertainties remain due to geopolitical tensions and upcoming elections  **[OMC_3402843_2]** . What risks do you foresee that could impact your bullish outlook, and how are you preparing to mitigate them?

5. As you invest heavily in **AI** and automation  **[OMC_3402843_9]** , could you elaborate on how you're managing talent acquisition and retention  **[OMC_3402843_18]** ? Specifically, are you facing challenges in attracting and retaining the right talent with the necessary skill sets to support these growth initiatives?

5b14e0445cc74bbff7111b03173976c783194a954825a0d85a7accbc905d7abf

Advertising & Media

Precision Marketing

Commerce & Branding

- Branding & Retail Commerce

Experiential

Execution & Support

Public Relations

Healthcare

CRM Consumer Experience

Total Revenue

dd5552c3e0e0591024b78d9317e039bd4b5de974e677554b90724b9b1e457b9f

a410139bfcd52d432d57298c91193aad8fbdb9622f5ace82dce6425c55ef8e10

ab7b50fca44855add9bd78de1c76d7abeb056c574de928cbd3f3a816fff79018

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Growth**: Expecting the higher end of their target of **4% to 5%** for the year  **[OMC_3402843_1]** .
  2. **EBITDA Margin**: Maintaining full year 2024 target close to flat with 2023  **[OMC_3402843_1]** .
  3. **Foreign Currency Translation Impact**: Positive **1%** for Q4 and flat for the full year  **[OMC_3402843_4]** .
  4. **Acquisition and Disposition Revenue Impact**: **1.75%** for Q4 and **2.0%** for the full year  **[OMC_3402843_4]** .
  5. **Income Tax Rate**: Approximate **27%** for Q4  **[OMC_3402843_5]** .
  6. **Share Repurchases**: Approximately half of the historical average of about **$600 million** for 2024  **[OMC_3402843_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: Maintaining target of **4% to 5%**  **[OMC_3393383_1]** .
  2. **EBITDA Margin**: Expected to be close to flat with 2023's **15.6%**  **[OMC_3393383_4]** .
  3. **Income Tax Rate**: Approximate **27%** for the second half  **[OMC_3393383_4]** .
  4. **Foreign Currency Impact**: Negative **0.5%** for Q3 and full year  **[OMC_3393383_3]** .
  5. **Acquisition and Disposition Revenue Impact**: **1.5%** for Q3 and full year  **[OMC_3393383_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Growth**: Increased range to **4% to 5%**  **[OMC_3379869_1]** .
  2. **Net Interest Expense**: Increase by approximately **$45 million** relative to 2023  **[OMC_3379869_5]** .
  3. **EBITDA Margin**: Expected to be close to flat with 2023's **15.6%**  **[OMC_3379869_4]** .
  4. **Income Tax Rate**: Approximate **27%** for the full year  **[OMC_3379869_4]** .
  5. **Stock Repurchase**: Approximately half of the historical average due to the Flywheel acquisition  **[OMC_3379869_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: Targeting **3.5% to 5%**  **[OMC_3372020_3]** **[OMC_3372020_2]** .
  2. **Impact of Foreign Currency Translation**: Close to flat for Q1 and full year  **[OMC_3372020_3]** .
  3. **Acquisition and Disposition Revenue**: Positive contribution of about **1.5%** in Q1 and **2%** for the full year  **[OMC_3372020_3]** .
  4. **Interest Expense**: Increase due to Flywheel acquisition and refinancing of senior notes  **[OMC_3372020_5]** .
  5. **Adjusted EBITDA Margin**: Expected to be close to flat with last year  **[OMC_3372020_4]** .
  6. **Tax Rate**: Approximate **27%**, impacted by international statutory rates  **[OMC_3372020_4]** .
  7. **Share Repurchases**: Approximate **50%** of recent average due to a larger-than-normal acquisition  **[OMC_3372020_5]** .

f09f53541e95319faf9bf4d3e5772e38dc7448fc888fa97b8c9ebd6e899d89f6

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

a3a6d4cb5d47b912a44b2974f295c283dd4bda79e4edca80eb525db325bd92a7

**Quarterly guidance for Q4 2024:**
- **Foreign Currency Translation Impact**: +1%  **[OMC_3402843_4]**  (no prior guidance)  
- **Acquisition and Disposition Revenue Impact**: 1.75%  **[OMC_3402843_4]**  (no prior guidance)  
- **Income Tax Rate**: ~27%  **[OMC_3402843_5]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **Organic Growth**: 4% to 5%  **[OMC_3402843_1]**  (no change from 4% to 5%  **[OMC_3393383_1]** )  
- **EBITDA Margin**: Close to flat with 2023  **[OMC_3402843_1]**  (no change from close to flat with 2023’s 15.6%  **[OMC_3393383_4]** )  
- **Foreign Currency Translation Impact**: Flat for the full year  **[OMC_3402843_4]**  (raised from -0.5%  **[OMC_3393383_3]** )  
- **Acquisition and Disposition Revenue Impact**: 2.0%  **[OMC_3402843_4]**  (raised from 1.5%  **[OMC_3393383_3]** )  
- **Share Repurchases**: ~Half of historical average of ~$600M  **[OMC_3402843_5]**  (no prior guidance)

b7543d6d1c2592073e3ed24b48142abb9f184ad8cdcb73560372b607a5377dd0

| Name                  | Position                                       | Start Date          | Short Bio                                                                                                                                                      |
|-----------------------|------------------------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| John D. Wren          | Chairman of the Board and Chief Executive Officer | 1997                | John D. Wren has been a **Director of Omnicom since 1993**. He was named **Chief Executive Officer in 1997** and elected **Chairman in 2018**. He was part of the team that created Omnicom in 1986  **[0001213900-24-027211_def14a0224_omnicom.htm:14]** **[0001213900-23-022354_def14a2023_omnicom.htm:16]** . |
| Daryl Simm            | President and Chief Operating Officer          | November 2021       | Daryl Simm is the **President and Chief Operating Officer** of Omnicom Group Inc. He was named to this position in **November 2021**. Previously, he served as CEO of Omnicom Media Group for over 20 years  **[0000029989-24-000007_omc-20231231.htm:11]** **[0000029989-23-000005_omc-20221231.htm:8]** . |
| Philip J. Angelastro  | Executive Vice President and Chief Financial Officer | N/A                 | Philip J. Angelastro serves as the **Executive Vice President and Chief Financial Officer** of Omnicom Group Inc. He has held this position for at least five years as of February 1, 2024  **[0000029989-24-000007_omc-20231231.htm:11]** . |
| Andrew L. Castellaneta| Senior Vice President, Chief Accounting Officer | February 2023       | Andrew L. Castellaneta serves as the **Senior Vice President and Chief Accounting Officer** at Omnicom Group Inc. He has held this position since at least **February 1, 2023**  **[0000029989-23-000005_omc-20221231.htm:8]** . |
| Louis F. Januzzi      | Senior Vice President, General Counsel and Secretary | December 2022       | Louis F. Januzzi is the **Senior Vice President, General Counsel and Secretary** at Omnicom Group Inc. He was appointed to this position in **December 2022**. Previously, he served as Senior Vice President & Deputy General Counsel - Corporate  **[0000029989-24-000007_omc-20231231.htm:11]** **[0000029989-23-000005_omc-20221231.htm:8]** . |
| Rochelle M. Tarlowe   | Senior Vice President and Treasurer            | May 2019            | Rochelle M. Tarlowe is the **Senior Vice President and Treasurer** at Omnicom Group Inc. She was appointed to this position in **May 2019**. Before joining Omnicom, she was Senior Vice President and Treasurer of Avis Budget Group  **[0000029989-24-000007_omc-20231231.htm:11]** . |
| Jonathan B. Nelson    | CEO, Omnicom Digital                            | N/A                 | Jonathan B. Nelson is the Chief Executive Officer of Omnicom Digital. As of February 1, 2024, he was 56 years old. He has been serving in his current role for at least five years  **[0000029989-24-000007_omc-20231231.htm:11]** . |

126847bea373bd14b48c309ebc9846aa3130d0ec1e1317aad73be6087408c3a8

Americas

- North America

- Latin America

EMEA

- Europe

- Middle East and Africa

Asia-Pacific

e38424289796bca874e657fb8f9862adc3cc5c1ef2eb1734e7c1dcb7a0d7b81b

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2002  **[0000029989-24-000007_omc-20231231.htm:79]**    | Present  | Current auditor   |

d2ebea6cb6f4629a1ba8413719cbf9d5cf410b2910ea8a35d2b9ef7a5259f6be

731363e73eca4ed6e923bac6cc25cf324a5b2986e72d74322dca72888a7e92d1

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,882.6 million (+9% YoY)  **[0000029989-24-000027_omc-20240930.htm:8]** **[0000029989-23-000033_omc-20230930.htm:8]**   
- Advertising & Media: $2,083.7 million (+9% YoY)  **[0000029989-23-000033_omc-20230930.htm:7]** **[0000029989-24-000027_omc-20240930.htm:7]**   
- Precision Marketing: $461.0 million (**+20% YoY**)  **[0000029989-23-000033_omc-20230930.htm:7]** **[0000029989-24-000027_omc-20240930.htm:7]**   
- Experiential: $177.0 million (**+33% YoY**)  **[0000029989-23-000033_omc-20230930.htm:7]** **[0000029989-24-000027_omc-20240930.htm:7]**   
- Public Relations: $414.4 million (+6% YoY)  **[0000029989-23-000033_omc-20230930.htm:7]** **[0000029989-24-000027_omc-20240930.htm:7]**   
- North America: $2,154.0 million (+9% YoY)  **[0000029989-24-000027_omc-20240930.htm:8]** **[0000029989-23-000033_omc-20230930.htm:8]**   
- Europe: $1,080.8 million (+6% YoY)  **[0000029989-24-000027_omc-20240930.htm:8]** **[0000029989-23-000033_omc-20230930.htm:8]**   
- Middle East & Africa: $63.3 million (**+23% YoY**)  **[0000029989-24-000027_omc-20240930.htm:8]** **[0000029989-23-000033_omc-20230930.htm:8]**   
- Asia-Pacific: $484.8 million (**+13% YoY**)  **[0000029989-24-000027_omc-20240930.htm:8]** **[0000029989-23-000033_omc-20230930.htm:8]**   
- Operating Income (EBIT): $600.1 million (+7% YoY)  **[0000029989-23-000033_omc-20230930.htm:4]** **[0000029989-24-000027_omc-20240930.htm:4]**   
- Basic EPS: $1.97 (+5% YoY)  **[0000029989-23-000033_omc-20230930.htm:4]** **[0000029989-24-000027_omc-20240930.htm:4]** **[0000029989-23-000033_omc-20230930.htm:8]** 

a22146f4e7eee1f38f6e41d7b257fc8e4d33d59526be8fee12ff8cb714c20c6a

- **Significant Revenue Synergies Expected from IPG Acquisition**: Omnicom anticipates substantial revenue growth opportunities from the proposed acquisition of IPG, particularly by combining media businesses and leveraging Acxiom's first-party data capabilities. This will enable the company to offer new products and services to a broader client base, enhancing revenue growth potential ( **[OMC_3414252_15]** ).
- **Strong Performance Exceeding Expectations**: In Q4 2024, Omnicom's Media Business, Precision Marketing, and Public Relations performed better than expected, contributing to an organic growth rate of **5.2%**, surpassing the top end of their guidance range ( **[OMC_3414252_9]** ). This demonstrates the company's ability to outperform expectations, indicating a positive outlook for future growth.
- **Advancements in AI and Strategic Partnerships**: Omnicom is actively investing in AI technologies and large language models, engaging thousands of creatives and strategists in utilizing these tools to enhance efficiency and measurability for clients ( **[OMC_3414252_12]** ). Additionally, recent partnerships with major tech platforms like Google and Amazon provide access to unique data and tools, further enhancing Omnicom's media capabilities and client offerings ( **[OMC_3414252_13]** ).

cc0c34a95ea23bc07100e4754b333744828224683bf5d049b6921a9f60745b4c

- Despite exceeding organic growth expectations in 2024, Omnicom is guiding for a **slowdown in organic growth to a range of 3.5% to 4.5% in 2025**, indicating potential uncertainties and challenges ahead. John Wren mentioned being conservative due to changes in the U.S. government and policies that could impact sectors like the auto industry.  **[OMC_3414252_9]**
- The realization of revenue synergies from the IPG acquisition may be delayed due to **regulatory restrictions** during the approval process. John Wren stated that they **cannot pitch opportunities together until approvals are received**, leading to a "temporary pause" in synergistic activities.  **[OMC_3414252_16]**
- Omnicom's margins are under pressure due to ongoing integration costs and investments. Margins were down approximately **10 basis points** in the first quarter of 2024 due to the integration of Flywheel, and the company expects only a **10 basis point improvement** in adjusted EBITDA margin for 2025, indicating limited margin expansion.  **[OMC_3414252_10]**

3fc7ca55d988d5251373315b87bb63792088956187428db49421f70010279bbd

1. **2025 Organic Growth Outlook**  
   **Q:** Why is 2025 organic growth expected to slow down?  
   **A:** Management is cautious about 2025, anticipating slower organic growth due to uncertainties from changes in the U.S. government and potential policy impacts on sectors like auto. They remain optimistic but are being conservative until further guidance from clients.  **[OMC_3414252_9]** 

2. **Revenue Synergies from IPG Merger**  
   **Q:** How will the IPG merger drive revenue synergies?  
   **A:** Significant revenue upside is expected from the merger, particularly in Media and first-party data capabilities with Acxiom. The combined company will offer new products and services to clients, leveraging tools and resources previously unavailable. Investments in AI and large language models will enhance efficiency and ROI for clients, potentially driving increased spending.  **[OMC_3414252_14]** 

3. **Client Reaction to IPG Merger**  
   **Q:** How are clients responding to the IPG merger?  
   **A:** Clients have been constructive and see possibilities in the Omnicom-IPG combination. No concerns have been raised that couldn't be addressed. Both companies continue to operate independently until regulatory approvals are obtained.  **[OMC_3414252_10]** 

4. **Share Buyback Plans**  
   **Q:** What are the plans for share buybacks in 2025?  
   **A:** Omnicom intends to resume share buybacks, targeting **$600 million** in 2025. They reduced buybacks in 2024 due to the Flywheel acquisition but expect to return to normal levels despite navigating blackout periods related to the IPG transaction.  **[OMC_3414252_13]** 

5. **Margin Outlook for 2025**  
   **Q:** What is the margin expectation for 2025?  
   **A:** Management aims for slight margin improvement in 2025, balancing investments for sustainable growth with efficiency efforts like automation to drive down costs and maximize EBIT growth.  **[OMC_3414252_10]** 

6. **Integration of Flywheel**  
   **Q:** How is the Flywheel integration progressing?  
   **A:** Flywheel is fully integrated and part of the central team pitching businesses. There have been numerous mutual wins during the year, demonstrating successful integration.  **[OMC_3414252_11]** 

7. **Impact of Big Tech Tools**  
   **Q:** Are big tech campaign tools affecting growth?  
   **A:** These tools primarily impact SMBs, not Omnicom's usual client base. Omnicom is actively testing large language models with thousands of creatives and strategists to enhance capabilities while ensuring compliance with regulations.  **[OMC_3414252_12]** 

8. **Partnerships with Tech Giants**  
   **Q:** How do new partnerships enhance Omni's capabilities?  
   **A:** Recent partnerships with platforms like Google and Amazon provide access to unique data, benefiting clients. Media teams are excited about these incremental benefits, which are unique across each platform.  **[OMC_3414252_12]** 

9. **Regulatory Limitations Pre-Merger**  
   **Q:** When can Omnicom and IPG pitch together?  
   **A:** Due to regulatory rules, they cannot pitch opportunities together until merger approvals are obtained. They are using the time to plan integration and identify products and clients for future collaboration.  **[OMC_3414252_16]** 

10. **Financial Reporting Approach**  
    **Q:** Will Omnicom report net organic revenue like IPG?  
    **A:** Omnicom will continue to report on a gross basis, including third-party service costs as part of the business. They manage and measure performance without excluding these costs and do not plan to change their reporting approach.  **[OMC_3414252_16]** 

d089e4e2dab6950d106abbea7d8975d284299c16d0082f4212be2eae57b1589b

**Quarterly guidance for Q1 2025:**  
- **Foreign Currency Translation Impact**: -2% to -2.5%  **[OMC_3414252_5]**  (lowered from +1%  **[OMC_3402843_4]** )

**Annual guidance for FY 2025:**  
- **Organic Growth**: 3.5% to 4.5%  **[OMC_3414252_2]**  (lowered from the higher end of 4% to 5%  **[OMC_3402843_11]** **[OMC_3402843_1]** )  
- **Adjusted EBITA Margins**: +10 basis points vs. 2024  **[OMC_3414252_2]**  (no prior guidance)  
- **Income Tax Rate**: 26.5% to 27%  **[OMC_3414252_7]**  (no prior guidance)  
- **Foreign Currency Translation Impact**: -2%  **[OMC_3414252_5]**  (lowered from flat  **[OMC_3402843_4]** )  
- **Share Repurchase Activity**: $600 million  **[OMC_3414252_7]**  (raised from about half of $600 million  **[OMC_3402843_5]** )

1c4825e298532434addc6df7bcb586cc2584a2eca0dcfaeb204afd90e80bd34a

f410ee72f24c1a0f89f4cbfb64c9d78a5ae1211c80cf975fa6057bb2fdb09a21

f354ea612d554877079bbb12d50dbc5070f11b0fa0c13307eb6084a22f0d62c6

1. **AI Integration and Competitive Differentiation**  
   **Q:** Will AI integration create visible competitive advantages?  
   **A:** John Wren stated that AI, especially Generative AI, will enhance productivity and deliver better insights for clients. Omnicom has been investing in AI for nearly a decade, with recent emphasis on tools like **Omni Assist**, which utilizes large language models. The company is cautious about client safety and is working closely with partners like **Microsoft, Google, Amazon, Adobe**, and **Dotty** to ensure responsible use of AI. **Paolo Yuvienco** added that Omnicom's early adoption provides a first-mover advantage.  **[OMC_3372020_7]** 

2. **Margin Expectations and Growth**  
   **Q:** What's holding margins flat, and is there room for expansion?  
   **A:** Management expects steady progress on margins, balancing necessary investments in areas like AI with efficiency initiatives such as offshoring and automation. While AI requires investment, it is expected to drive future efficiencies. They are also focusing on real estate rationalization. Overall, they strive to generate appropriate returns and benefits for shareholders while making necessary investments.  **[OMC_3372020_10]** 

3. **Technology Vertical Outlook**  
   **Q:** What's the outlook for the technology sector?  
   **A:** John Wren acknowledged that while Omnicom didn't experience as significant a downturn in the technology sector as peers, they expect an uplift due to **easier comps**. The company anticipates growth from its base of technology clients as the year progresses.  **[OMC_3372020_8]** 

4. **Advertising and Media Growth Drivers**  
   **Q:** Why was advertising and media so strong in Q4?  
   **A:** Growth was driven by strong performances in media, with account wins and project releases contributing. The strength was notable across media operations globally. While creative remains important, media showed significant growth, reflecting the quality of offerings that attract clients and meet their needs.  **[OMC_3372020_9]** **[OMC_3372020_11]** 

5. **Working Capital Impact**  
   **Q:** Why is working capital still so high, and will it come down?  
   **A:** The change in working capital improved by almost **$400 million** in 2023, a significant reduction from prior periods. Factors like actions of the Fed and global treasuries have made working capital management more challenging. Omnicom aims to continue improving performance, striving to get the number back to neutral or positive over time.  **[OMC_3372020_9]** 

6. **Sector Outlooks: Pharma and Auto**  
   **Q:** What's the outlook for pharma and auto sectors?  
   **A:** John Wren is optimistic about pharma, citing ongoing scientific advances and opportunities for growth, despite cycling through the loss of **Pfizer** earlier in the year. In the auto sector, Omnicom is well-represented and expects strength as OEMs navigate the mix of electric, hybrid, and conventional vehicles. The addition of Flywheel enhances capabilities in areas like aftermarket parts sold through marketplaces.  **[OMC_3372020_15]** 

7. **Cookie Deprecation Impact**  
   **Q:** How will cookie deprecation affect Omnicom?  
   **A:** Omnicom has been preparing for third-party cookie deprecation and is ready for it. **Omni** has been purpose-built to address a cookie-less world. They have been integrating with clean rooms and leveraging first-party data. The acquisition of Flywheel brings in valuable marketplace data, reducing reliance on third-party cookies.  **[OMC_3372020_14]** 

8. **Flywheel Acquisition and Client Mix**  
   **Q:** What is Flywheel's client mix, and are there any conflicts?  
   **A:** **Flywheel** has a strong presence in **CPG**, serving **50 of the top 100** companies. There are opportunities to expand into electronics and automotive sectors, leveraging Omnicom's relationships. John Wren noted that conflicts are not a significant concern, as clients are sophisticated and focus on consistent service teams. The addition of Flywheel enhances capabilities and opportunities across various sectors.  **[OMC_3372020_11]** **[OMC_3372020_12]** 

9. **Shift in Growth Rates Between Regions**  
   **Q:** Why did international markets accelerate while U.S. slowed in Q4?  
   **A:** John Wren explained that growth drivers include client project releases, new business wins, and cycling through previous account losses. Strong project work came in unexpectedly in parts of Western Europe, while North America felt the impact of prior advertising account losses. He expects **2024** to look more traditional as they move past these issues and benefit from new business wins.  **[OMC_3372020_13]** 

10. **Amortization Increase from Flywheel Acquisition**  
    **Q:** How much will amortization increase due to Flywheel?  
    **A:** Philip Angelastro stated that while the exact number is not yet finalized, amortization expense will increase **meaningfully** due to the Flywheel acquisition. The company is working through valuations of intangible assets and expects to finalize figures in the coming weeks and months.  **[OMC_3372020_16]** 

25565b71ac8a09498aae2af421536ae19bf1c55e175728c66f3cd79e80da20e0

- **Omnicom has achieved significant new business wins in the last four months**, which will contribute to revenue growth in the next year, reflecting strong competitiveness and confidence in the marketplace.  **[OMC_3402843_15]** ,  **[OMC_3402843_12]**
- **Strategic investments in technology, including AI and measurement tools like Flywheel and Omni**, have enhanced Omnicom's ability to optimize and measure performance, making them more effective for clients and differentiating them in the market.  **[OMC_3402843_13]** ,  **[OMC_3402843_12]** ,  **[OMC_3402843_9]**
- **Improved integration across agencies through initiatives like the Omnicom Advertising Group (OAG)** is leading to better deployment of talent, waste avoidance, and strengthened agency brands, positioning the company for future margin expansion and growth.  **[OMC_3402843_13]** ,  **[OMC_3402843_9]**

556817ca559b0bddad1b6d7845d4b564214f181125ff7445e09ef3740cefc880

- **Persistent working capital challenges**: Omnicom's working capital remains significantly negative, with management noting it will "take some time for us to get back to neutral given the rate environment and where it is." Clients are holding onto cash longer, impacting cash flow.  **[OMC_3393383_11]**
- **Delays and client losses in precision marketing**: The precision marketing segment has experienced project delays due to external events like elections and a client loss, leading to headwinds in growth. While management is hopeful for improvement, there's uncertainty about when delayed projects will resume.  **[OMC_3393383_10]**
- **Macro uncertainties leading to client cautiousness**: Clients are being conservative in forecasting and spending due to delayed macroeconomic improvements and geopolitical events. This cautiousness may impact advertising spending in the second half of the year.  **[OMC_3393383_19]**

c70fab34babb61e890ec49aa112e523cb0361a57af0e30225a538318e9b7fe17

- **Omnicom's core creative advertising business was roughly flat in Q1**, facing challenges due to macro factors, technology changes, and account dynamics, indicating pressure on a key segment.  **[OMC_3379869_5]**
- **The acquisition of Flywheel is negatively impacting margins due to its lower margins and integration costs.** Flywheel's margins are lower than Omnicom's average, and integration costs are impacting overall profitability.  **[OMC_3379869_6]**
- **Advertising and Media growth slowed from 9% in Q4 to 7% in Q1**, which could signal a potential slowdown in client spending or increased competition. Management seems to dismiss the importance of this slowdown.  **[OMC_3379869_6]**

d43c22d90576b28b67289843834765898dca408a7a8f893897deb0d064e8f491

- Omnicom's **margins are expected to remain flat in 2024**, with no significant margin expansion due to ongoing investments, including in AI and automation, which may weigh on profitability.  **[OMC_3372020_11]**
- The company's **creative division is lagging**, with more strength seen in media; this could be a concern since creativity is Omnicom's intellectual property and key differentiator.  **[OMC_3372020_11]**
- **Working capital management remains challenging**, with ongoing difficulties due to higher interest rates, and improvements are not expected to happen overnight.  **[OMC_3372020_10]**

625a8584aaf4a340abf8a7232726c7e9c85e9721a266954d237b24627ffcc60a

1. **Organic Growth Outlook**  
   **Q:** Why did you leave the organic growth outlook unchanged after 4.6% YTD growth?  
   **A:** John Wren explained that while confident about client conversations and current business, they don't control macroeconomic factors like the election. They prefer not to adjust forecasts frequently and are comfortable with their guidance. They may review it post-election when there's more stability.  **[OMC_3393383_8]** 

2. **Media Business Performance**  
   **Q:** What's driving Omnicom's success in the media business?  
   **A:** John Wren attributed their media wins to structural advantages, notably their decade-long investment in Omni, which offers advanced tools and insights. This differentiates them from competitors and has led to significant client wins and improved media effectiveness.  **[OMC_3393383_12]** 

3. **Impact of AI on Creative Work**  
   **Q:** How does ArtBotAI affect agency revenue and creative efficiency?  
   **A:** John Wren noted that tools like ArtBotAI improve efficiency by automating mundane tasks, allowing for better, faster, and cheaper content production. While it reduces certain costs, clients often reinvest savings into additional marketing spend, benefiting the agency.  **[OMC_3393383_14]** 

4. **Omnicom Production Initiatives**  
   **Q:** Can you discuss your recent production initiatives and expected impacts?  
   **A:** John Wren explained they're centralizing production under experienced leadership to capitalize on revenue opportunities. Competitors have production revenues 2–3 times larger, and Omnicom aims to be among the top three in the next 30–36 months, enhancing revenue rather than just cutting costs.  **[OMC_3393383_7]** 

5. **Shift to Performance-Based Compensation**  
   **Q:** Are you moving towards performance-based or licensing agency compensation models?  
   **A:** John Wren acknowledged a long-term shift toward outcome-based models, driven by improved ROI measurements and AI tools. This is a multi-year journey focused on developing products and services that align with measurable client KPIs.  **[OMC_3393383_9]** 

6. **Precision Marketing Slowdown**  
   **Q:** What's causing delays in precision marketing projects, and will growth return?  
   **A:** Delays were due to factors like a client loss and postponed UK consulting projects because of an election. New business wins, including a significant US auto manufacturer, are expected to drive improvement in organic growth in the second half.  **[OMC_3393383_10]** 

7. **Working Capital and Cash Flow**  
   **Q:** Will working capital outflows improve in H2, and what's the cash impact of restructuring?  
   **A:** Most of the $58 million repositioning charge will impact cash in the second half. Working capital performance improved in Q2, and they expect continued progress, aiming to return to neutral over time as the rate environment improves.  **[OMC_3393383_11]** 

8. **Future Adjustments and Skills**  
   **Q:** Are further adjustments needed, and do you lack any capabilities?  
   **A:** John Wren believes they are appropriately prepared for current client needs but emphasizes continuous investment and evolution. They are never fully satisfied and remain committed to innovation, ensuring they stay ahead of client requirements.  **[OMC_3393383_16]** 

9. **Omnicom Production Setup**  
   **Q:** Is Omnicom Production a centralized service, and are further costs expected?  
   **A:** The production unit is centralized to enhance capabilities and scale. Any future adjustments are expected to be self-liquidating within a quarter, with no significant additional costs anticipated based on current information.  **[OMC_3393383_17]** 

10. **Macro Environment Impact**  
    **Q:** Are clients pulling back ad spending due to macroeconomic indicators?  
    **A:** Clients are cautious but not pulling back. Initial optimism has shifted to cautious optimism due to delayed government actions and political uncertainties. Omnicom maintains close client relationships and remains confident in their guidance.  **[OMC_3393383_19]** 

11. **Technology Client Spending**  
    **Q:** How are technology clients affecting your growth rates?  
    **A:** Technology clients represent about 7% of revenues. While there have been minor pluses and minuses, there hasn't been a significant impact on consolidated results, and no substantial drop-off in tech client spending is observed.  **[OMC_3393383_18]** 

6506220c0b40ddc7eeb2e068d4cfeea1292ead93c9976b2724c8a742ff404406

- **Omnicom raised its full-year organic growth guidance to between **4% and 5%**, reflecting confidence in continued strong performance. The company achieved **4% organic growth** in Q1 2024, demonstrating resilience and momentum.  **[OMC_3379869_1]**
- **Successful integration of the Flywheel acquisition**, enhancing Omnicom's capabilities in e-commerce and precision marketing. Flywheel is expected to contribute to **low double-digit growth** in the Precision Marketing discipline, positioning Omnicom for future growth in the expanding e-commerce sector.  **[OMC_3379869_6]**
- **Strong performance in Advertising and Media**, with **7% organic growth** in Q1 2024, driven by excellent results in global media businesses. This underscores the strength and competitiveness of Omnicom's core media offerings.  **[OMC_3379869_3]**

c252fbea3c314d21b85f33f3ff1bd40db1504eb6ee90dc369001e1c01512a9ae

- **Unknown investment levels in AI technologies may impact margins:** Omnicom acknowledges that the **level of investments needed for AI and associated benefits is unknown**, which could potentially affect margins due to ongoing costs.  **[OMC_3402843_9]**
- **Minimal cost savings from restructuring efforts:** The formation of the Omnicom Advertising Group (OAG) is expected to generate **de minimis cost savings**, focusing on **waste avoidance rather than significant expense reduction**, potentially limiting improvements in profitability.  **[OMC_3402843_13]**
- **Dependence on cyclical events for revenue growth:** Omnicom's **6.5% organic growth** in the quarter was partly due to **temporary boosts from the U.S. elections and the Olympics**, which are cyclical and may not repeat, raising concerns about the sustainability of such growth levels.  **[OMC_3402843_17]**

ba19867d5344b5cc3dc2432cf6c4d222984055f8221a2994e7cd08d5e5b38d69

1. **Guidance Increase**  
   **Q:** Why did you raise your guidance?  
   **A:** John Wren explained that after achieving **4%** organic growth in **Q1**  **[OMC_3379869_8]** , they felt confident to raise the lower end of their guidance from **3.5%** to **4%**.  **[OMC_3379869_8]**  They are seeing things in line with expectations and have increased confidence about future growth, removing earlier caution.  **[OMC_3379869_8]** 

2. **Flywheel's Impact on Margins**  
   **Q:** How will Flywheel affect your margins?  
   **A:** Philip Angelastro noted that Flywheel's margins are currently lower than Omnicom's average, but they expect Flywheel's margins to approximate Omnicom's average by **Q4**.  **[OMC_3379869_6]**  Longer term, they anticipate Flywheel will be **accretive** to Omnicom's overall average margins.  **[OMC_3379869_6]** 

3. **Precision Marketing Growth**  
   **Q:** What's the growth outlook for Precision Marketing?  
   **A:** John Wren expects Precision Marketing to achieve **low double-digit growth**.  **[OMC_3379869_7]**  With clients' online activity and e-commerce growing, they are bullish about its contribution.  **[OMC_3379869_7]** 

4. **Advertising & Media Growth**  
   **Q:** Why did Advertising and Media growth slow to 7%?  
   **A:** John Wren stated they are happy with the **7%** growth  **[OMC_3379869_7]** , despite it being lower than the previous quarter's **9%**.  **[OMC_3379869_7]**  The business has been growing strongly, and they expect it to continue.  **[OMC_3379869_7]** 

5. **Generative AI in Creative**  
   **Q:** How will generative AI affect your creative services?  
   **A:** John Wren believes generative AI empowers creative staff by simplifying execution and eliminating repetitive tasks.  **[OMC_3379869_15]**  It enhances their ability to deliver better ideas and personalized messaging, improving ROI for clients.  **[OMC_3379869_15]** 

6. **Capital Intensity of Flywheel**  
   **Q:** Is Flywheel more capital-intensive?  
   **A:** Philip Angelastro explained that while they expect an increase in CapEx to develop the Flywheel Commerce Cloud platform, the investment is **manageable** and similar to their Omni platform.  **[OMC_3379869_15]**  The majority of Flywheel's integration work was completed prior to acquisition.  **[OMC_3379869_15]** 

7. **Organic Growth Calculation**  
   **Q:** How do you calculate organic growth with acquisitions?  
   **A:** Philip Angelastro stated that they include acquired companies like Flywheel in organic growth calculations.  **[OMC_3379869_9]**  For example, if Flywheel did **$102 million** this quarter and **$100 million** last year before acquisition, the **$2 million** increase is counted as organic growth.  **[OMC_3379869_9]** 

8. **Creative Services Outlook**  
   **Q:** What's the outlook for your creative services?  
   **A:** Philip Angelastro mentioned that creative was roughly **flat** this quarter  **[OMC_3379869_13]** , but they expect **improvement** throughout the year.  **[OMC_3379869_13]**  They are optimistic as creative is core to Omnicom's DNA.  **[OMC_3379869_13]** 

9. **Additional Acquisitions**  
   **Q:** Are you planning more strategic acquisitions?  
   **A:** John Wren indicated they are focusing on areas showing exceptional growth like MarTech, transformation, and content production automation.  **[OMC_3379869_6]**  They are not currently looking at acquisitions as large as Flywheel.  **[OMC_3379869_6]** 

10. **Flywheel's Seasonal Performance**  
    **Q:** How does Flywheel's performance vary seasonally?  
    **A:** John Wren noted that Flywheel tends to be weakest in the **first quarter** and accelerates through the year, aligning with the retail cycle.  **[OMC_3379869_6]**  They expect its growth to improve as the year progresses.  **[OMC_3379869_8]** 

11. **Business Transformation Projects**  
    **Q:** Are you seeing movement on digital transformation projects?  
    **A:** John Wren stated that business is **healthy**, and they haven't seen any headwinds.  **[OMC_3379869_8]**  He suggested that competitors' cautiousness may be due to their specific client plans.  **[OMC_3379869_8]** 

12. **Impact of Gen AI on Competition**  
    **Q:** Could generative AI be cannibalistic to creative services?  
    **A:** John Wren believes that while AI automates repetitive tasks, it cannot replace the **creative minds** that differentiate their services.  **[OMC_3379869_15]**  He views AI as a tool that enhances creativity rather than a threat.  **[OMC_3379869_15]** 

c407c8c3bfcee95f0ab3dd1eddbf36b200e5ee64b8523ed94f2fa31c7d8c2be7

1. **Guidance and Growth Outlook**  
   **Q:** Can you discuss Q4 guidance and 2025 growth outlook?  
   **A:** We expect to be at the **high end** of our guidance for the year and are confident in our ability to achieve this despite uncertainties in project spend. Entering 2025, we are **bullish** due to recent significant client wins that will contribute to revenue next year. The U.S. market is strong, and we anticipate a return to growth in regions like the U.K. where spending was temporarily suspended.  **[OMC_3402843_11]** **[OMC_3402843_15]** 

2. **Margin Expansion and EPS Growth**  
   **Q:** With mid-single-digit growth, can margins expand and EPS grow?  
   **A:** Achieving margin expansion and returning to double-digit EPS growth depends on efficiencies from initiatives like production consolidation and the Omnicom Advertising Group. However, ongoing investments in **AI** and technology are essential and come with costs. We strive to balance these investments while aiming for appropriate margins and are **bullish** about enhancing future effectiveness.  **[OMC_3402843_9]** **[OMC_3402843_16]** 

3. **Amazon Win Impact**  
   **Q:** How will the Amazon win affect future results?  
   **A:** Winning Amazon's business is a **phenomenal** achievement, creating a real enterprise relationship that opens up future opportunities. Revenue from this win will start in the **new year**. We are currently staffing up to ensure seamless service, which involves upfront costs but positions us strongly for future growth.  **[OMC_3402843_8]** **[OMC_3402843_10]** 

4. **Flywheel Integration and Growth**  
   **Q:** Is Flywheel integration on track for double-digit growth?  
   **A:** Yes, we expect Flywheel to grow top-line at **double-digit** rates. The Amazon win demonstrates successful collaboration. We're now able to **measure marketing spend** effectively, distinguishing Omnicom in justifying media spend and ROI. Integration with our **Omni** platform strengthens our proposition to clients, making it a powerful tool for new business wins.  **[OMC_3402843_10]** **[OMC_3402843_12]** 

5. **Investments in AI and Technology**  
   **Q:** How are AI investments impacting future performance?  
   **A:** We are investing significantly in **AI** to develop bulletproof tools that enhance effectiveness. While these investments have costs, they're necessary to stay at the forefront and maintain our competitive edge. This includes initiatives in **automation**, offshoring, and nearshoring to improve efficiencies and margins over time.  **[OMC_3402843_9]** **[OMC_3402843_16]** 

6. **Omnicom Advertising Group Integration**  
   **Q:** How does OAG integration affect your operations?  
   **A:** We're more **integrated** than ever. Forming the Omnicom Advertising Group allows us to make technological investments centrally, especially in **AI**, and then deploy them across our various agency cultures. This approach optimizes resource use, avoids waste, and improves the quality of products and tools available to clients, while still maintaining the unique strengths of individual agency brands.  **[OMC_3402843_13]** **[OMC_3402843_14]** 

7. **Precision Marketing Outlook**  
   **Q:** What's the outlook for the Precision Marketing segment?  
   **A:** We remain committed to Precision Marketing as a **strategic growth area**. While there was a shortfall outside the U.S. due to factors like the U.K. snap election, we expect a return to growth in **Q4**. Investments like the acquisition of **LeapPoint** support excellent growth prospects both in the U.S. and internationally.  **[OMC_3402843_11]** **[OMC_3402843_12]** 

8. **Talent Recruitment and Retention**  
   **Q:** Is strong performance helping with talent acquisition?  
   **A:** Yes, we have a very strong bench and are actively recruiting to staff new business wins. Success attracts talent from **competitors** and new entrants. Our advancements in **automation** and **AI** also help attract knowledge workers by eliminating mundane tasks, positioning us positively in a rapidly changing industry.  **[OMC_3402843_18]** **[OMC_3402843_16]** 

9. **Impact of Special Events on Growth**  
   **Q:** Are events like elections and Olympics boosting growth?  
   **A:** While we get a **bump** from events like the **Olympics** and **elections**, contributing to the **6.5% organic growth**, these are cyclical. We don't rely solely on them and focus on sustainable growth through our core strengths and investments.  **[OMC_3402843_17]** **[OMC_3402843_12]** 

10. **Industry Growth vs. Market Share**  
    **Q:** Is your growth from industry trends or taking share?  
    **A:** Our growth is due to strategic shifts in our product mix and investments in areas like **Flywheel** and **Omni**, which enhance measurement and effectiveness. This allows us to distinguish ourselves and capitalize on industry improvements, suggesting we're both benefiting from a better industry and gaining market share.  **[OMC_3402843_12]** **[OMC_3402843_15]** 

712a13b86ab2395c4b4f0a32e6fa0581165c2354b022eaf1521100233fbdbb73

- **Omnicom's media business is outperforming, winning significant new accounts due to structural advantages like the Omni platform and AI capabilities.**  **[OMC_3393383_12]**
- **The formation of Omnicom Production aims to significantly increase revenue, with plans to triple production revenue and become a top 3 player in the next 30 to 36 months.**  **[OMC_3393383_7]** **[OMC_3393383_9]**
- **New client wins in precision marketing, including a significant U.S. auto manufacturer, are expected to boost growth in the second half of the year and beyond.**  **[OMC_3393383_10]**

8b06eb2fe3535eb93854635bf66cbec30c2f3d6ac971b2c13943d08b05004998

- Omnicom expects **strong growth** from the recent acquisition of **Flywheel Digital**, which significantly enhances their capabilities in retail media and digital commerce, transforming them into a **marketing and sales-focused company**, and opening up new market opportunities, especially in fast-growing sectors like **consumer packaged goods (CPG)**, technology, and automotive.  **[OMC_3372020_12]** **[OMC_3372020_13]**
- The company anticipates benefits from major events in 2024, such as the **Olympics** and the **U.S. presidential election**, which are expected to boost advertising spend and positively impact revenue in the latter half of the year.  **[OMC_3372020_6]** **[OMC_3372020_15]**
- Omnicom remains **optimistic** about continued strong performance in key sectors like **healthcare** and **automotive**, expecting growth driven by advances in pharma and expanding opportunities in the automotive sector, including aftersales parts through marketplaces.  **[OMC_3372020_15]**

c278294f484765bb09ce5ffe0ac9c7cef36d2bd92fb6449c9fdf9ca384a03aeb

Omnicom Group Inc (OMC)

Financials