EX-99.1 3 y94807exv99w1.txt PRESENTATION MATERIALS Exhibit 99.1 (GREYGLOBAL GROUP LOGO) March 2004 (GREYGLOBAL GROUP LOGO) Page 1 (GREYGLOBAL GROUP LOGO) (Part of this presentation may contain forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed with the Securities and Exchange Commission, including but not limited to the last section of the Management's Discussion and Analysis entitled "Forward Looking Statements" contained in the Company's Annual Report on Form 10-K and in other filings.) (GREYGLOBAL GROUP LOGO) Page 2 Company Profile - Founded in 1917 as an ad agency in New York - Today a global full service provider of integrated marketing services - Fully global - Approximately 10,500 employees - 2003 revenue of $1,307.2MM - Went public in 1965 at a price of $9.75 - now $683 - Highest priced individual share on NASDAQ - Conservative financial management - Substantial employee ownership (GREYGLOBAL GROUP LOGO) Page 3 What Makes Grey Different - SINGULARITY OF PURPOSE: Solely dedicated to increasing value of client brands. - SIMPLICITY OF STRUCTURE: One - and only one - global company in each communications discipline. (GREYGLOBAL GROUP LOGO) Page 4 Key Global Clients
Client No. of Brands No. of No. of Grey Client Since Handled Countries Marketing Disciplines ------ ----- ------- --------- --------------------- (P&G LOGO) 1956 61 83 8 (GLAXOSMITHKLINE LOGO) 1955 80 83 7 (MARS INC. LOGO) 1985 27 50 6 (NOKIA LOGO) 1986 3 27 7 (ORACLE LOGO) 1999 6 11 5 (BRITISH AMERICAN TOBACCO LOGO) 1963 25 42 3 (DIAGEO LOGO) 1979 12 10 6 (WYETH LOGO) 1955 27 24 6 (TIME WARNER LOGO) 1977 8 3 4 (3M LOGO) 1984 21 13 6
Our Clients: 1/5 of the Fortune 500 (3M LOGO) (BRITISH AMERICAN TOBACCO LOGO) (VOLKSWAGEN LOGO) (HESS LOGO) (DIAGEO LOGO) (WYETH LOGO) (P&G LOGO) (DELL LOGO) (CANON LOGO) (AETNA LOGO) (ORACLE LOGO) (BELGACOM LOGO) (INTEL LOGO) (KMART LOGO) (MARS INC. LOGO) (NOKIA LOGO) (DEUTSCHE TELEKOM LOGO) (NORDEA LOGO) (JPMORGANCHASE LOGO) (CON AGRA LOGO) (TIME WARNER LOGO) (GLAXOSMITHKLINE LOGO) (BELLSOUTH LOGO) (HASBRO LOGO) (CENDANT LOGO) (DARDEN RESTAURANTS LOGO) (SARALEE LOGO) (MERCK LOGO) Source: Fortune Magazine (GREYGLOBAL GROUP LOGO) Page 6 (PANTENE LOGO) (P&G LOGO) (CANON LOGO) (CAPTAIN MORGAN LOGO) (DIAGEO LOGO) REAL Global Network (MAP) Americas Argentina Brazil Canada Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Peru Trinidad & Tobago United States Uruguay Venezuela Europe, Middle East & Africa Austria Belarus Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Egypt Estonia Finland France Germany Ghana Greece Hungary Ireland Israel Italy Kazakhstan Kenya Latvia Lebanon Luxembourg Lithuania Macedonia Moldova Netherlands Nigeria Norway Poland Portugal Romania Russia Saudi Arabia Serbia/Montenegro Slovak Republic Slovenia South Africa Spain Sweden Switzerland Turkey Ukraine United Arab Emirates United Kingdom Uzbekistan Zimbabwe Asia Pacific Australia Bangladesh China/Hong Kong India Indonesia Japan Malaysia New Zealand Pakistan Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam (GREYGLOBAL GROUP LOGO) Page 10 Simplicity of Structure (FLOW CHART) (GREYGLOBAL GROUP LOGO) | | -------------------------------------------------------------------------------- | | | | | | | | | | | | | | Grey Grey Grey Grey G2 GCI Worldwide MediaCom Healthcare Direct Interactive Worldwide Group Group Simple Structure (FLOW CHART) (GREYGLOBAL GROUP LOGO) U.S. Specialized -------------------------------------------------------------------------------- | | | | | | | | | | WING Alliance G WHIZ Grey Insight J. Brown Latino Partners Agency Group Well Positioned Geographically & by Client Business PERCENTAGE OF REVENUE BY GEOGRAPHY --------------------- Full Year 12/31/2003 (PIE CHART) North America 45% Europe 44% Asia/Latin America 11% REVENUE DISTRIBUTION BY KEY CLIENT BUSINESS * --------------------- (PIE CHART) Consumer-34% Healthcare-24% Food-19% Telecom & IT-13% Entertainment-5% Auto-3% Other-2% OUR KEY CLIENTS - Balanced, Market Leaders - Growing with existing clients - in terms of products, markets, disciplines and revenues * Based on current year forecast revenues of top 30 clients Strong, Vital Operating Management (FLOW CHART) (GREYGLOBAL GROUP LOGO) Ed Meyer, Steve Felsher, Bob Berenson, Steve Novick 50+years ------------------------------------------------------------------------------------------------------------------- | | | | | | | | | | | | | | GREY GREY GREY GREY G2 GCI WORLDWIDE MEDIACOM HEALTHCARE DIRECT INTERACTIVE WORLDWIDE GROUP GROUP Steve Blamer, Alexander Lynn Larry Norman Lehoullier Joe Celia Robert Feldman Carolyn Carter, Schmidt-Vogel O'Connor Vos Kimmel Orin Wechsberg 44 years 47 years Eduardo Arrocha Dene Callas 48 years 47 years 50 years 49 years Jon Mandel 48 years
Financials (GREYGLOBAL GROUP LOGO) Page #15 1996-2003 Revenues 7.0% CAGR* (BAR CHART)
$MM 1996 $ 765.50 1998 $ 935.18 2000 $1,247.45 2002 $1,199.71 2003 $1,307.27
FYE 12/31 *Compound Annual Growth Rate (GREYGLOBAL GROUP LOGO) Page 16 2003 Revenues Consolidated Revenues (BAR CHART) +9.0% $MM 2002 1199.71 2003 1307.27
North American Revenues (BAR CHART) +5.5% $MM 2002 555.24 2003 585.67
International Revenues (BAR CHART) +12.0% $MM 2002 644.47 2003 721.60
2003 Pre-Tax Profit Consolidated Pre-Tax Profit (BAR CHART) +53.9% $MM 2002 42.97 2003 66.13
North American Pre-Tax Profit (BAR CHART) +56.8% $MM 2002 27.85 2003 43.67
International Pre-Tax Profit (BAR CHART) +48.5% $MM 2002 15.12 2003 22.46
2003 Financial Data Net Income (BAR CHART) +59.3% $MM 2002 18.25 2003 29.08
EBITDA* (BAR CHART) +29.3% $MM 2002 96.90 2003 125.30
Earnings Per Share (BAR CHART) +63.8% $MM 2002 13.28 2003 21.76
Stockholders' Equity (BAR CHART) +36.3% $MM 2002 177.51 2003 242.00
*A reconciliation of EBITDA to net income can be found in our most recent report to the SEC on Form 8-K How We Feel Today - Renewed optimism - Year of recovery, especially in US. More cautious in Europe. High growth expected in Asia. - Media Fragmentation: marketing spending spreading across wider range of communication as we chase more mobile and restless consumers. - Continued consolidation of global clients. (GREYGLOBAL GROUP LOGO) Page 20 Grey's Core Commitments - A global, full service provider of integrated marketing services - Singularity of purpose: client focused - Simplicity of structure - Fundamental growth - Conservative fiscal management (GREYGLOBAL GROUP LOGO) Page 21 (GREYGLOBAL GROUP LOGO) Page 22