Third Quarter 2019 Results slide image

Third Quarter 2019 Results

2018 Non-GAAP Financial Measures - 2018 Excluding Net Gain on Dispositions, Repositioning Actions and Tax Reform Act Adjustments Operating Profit (a) Net Interest Expense Income Tax Expense (¹) Income from Equity Method Investments Net Income Attributed to Noncontrolling Interests Net Income - Omnicom Group Inc. Earnings per Share - Diluted OmnicomGroup $ LA 2018 Third Quarter 502.3 $ 56.7 115.3 1.0 Non-GAAP Adjustments 32.4 298.9 $ 1.32 $ 29.0 $ 3.9 | 6.9 Non-GAAP 2018 Adjusted 18.2 $ 0.08 $ 56.7 473.3 $ 1,506.3 $ 111.4 1.0 25.5 $ 1.24 $ 2018 280.7 156.1 343.0 3.6 Year to Date Non-GAAP Adjustments 83.6 927.2 $ 4.06 $ 29.0 $ | 3.9 6.9 Non-GAAP 2018 Adjusted 18.2 $ 0.08 $ October 15, 2019 1,477.3 156.1 339.1 3.6 76.7 909.0 The above table presents the U.S. GAAP financial measures of Operating Profit, Income Tax Expense, Net Income - Omnicom Group Inc. and Diluted net income per common share as reported, as well as the impact of the net gain recognized on dispositions of certain subsidiaries, certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act for the period presented. The amounts presented in the column "Non-GAAP 2018 Adjusted" excludes these items from our results for the period presented, which are non-GAAP operating performance measures. We believe the amounts excluding the impact of these items are useful measures for investors to understand the impact these actions had on our reported results. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies. See page 33 for the reconciliation of GAAP financial measure Net Income - Omnicom Group Inc. (a) During the third quarter of 2018, we disposed of certain subsidiaries & recorded a net gain, primarily related to the sale of Sellbytel, our outsourced sales, service and support company, took certain reposition actions and recorded additional income tax expense related to the effects of the 2017 Tax Act, as described in footnote (b) on page 1. The net impact of these items increased operating profit by $29.0 million, Net Income - Omnicom Group Inc. by $18.2 million and Earnings per Share - Diluted by $0.08 per common share for the three and nine months ended September 30, 2018. (b) Income tax expense for the three and nine months ended September 30, 2018 reflected a net increase of $28.9 million related to an adjustment to the provisional amounts recorded for the 2017 Tax Act recorded in the third quarter of 2018. 3.98 28
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