Aegis Group plc2006 preliminary results

15 March 2007

financial results

Jeremy Hicks, CFO

Excellent progressBest-in-industry organic revenue growth at 7.7%

16% growth in underlying pre-tax profit to £116.2m (2005: £100.2m)

Underlying diluted eps up 14.8% to 7.0p (2005: 6.1p)

Record year for net new business at $2.7bn (2005: $1.6bn)

Reaping benefits of investment in acquisitions, new productsand services

20% of Aegis Media revenue from digital, up from 15% in 2005

20% of our total business today in developing markets

Organic revenue growth

Source: Carat adspend forecast and Synovate

5.0%

5.9%6.6%

7.7%

Aegis Group Aegis Media Global adspend Synovate Market research

9.5%

14.8%6.1p7.0pDiluted earnings per share

16.0%100.2116.2Profit before tax

16.3%115.0133.8Operating profit

12.9%755.0852.1Gross profit

14.5%870.4996.9Revenue

8,230.2

2006

1.9%8,079.1Turnover

Change2005£m

Income statementUnderlying

Profit before taxUnderlying

-1.3-Share of profit on disposal of JV

20.7%20.7%20.7%20.7%94.094.094.094.0113.5113.5113.5113.5Reported profit before taxReported profit before taxReported profit before taxReported profit before tax

-0.96.9Fair value gains

-(6.7)(5.8)Goodwill and other purchased intangibles

-(1.7)(3.8)Exceptional items

116.2

2006

16.0%100.2Underlying profit before tax

Change2005£m

Profit after taxUnderlying

(13.6)%(29.4)(33.4)Reported tax charge

(13.3)%(29.4)(33.3)Underlying tax charge

14.8%6.1p7.0pDiluted earnings per share

17.1%70.882.9Underlying profit after tax

--(1.4)Tax credit on VAT liability

--1.5Tax relief on goodwill

116.2

2006

16.0%100.2Underlying profit before tax

Change2005£m

(18.9)%(14.8)(17.6)Net interest

16.0%100.2116.2Profit before tax

(40.7)%(2.7)(3.8)Minority interest

17.1%70.882.9Profit after tax

(13.3)%(29.4)(33.3)Taxation

16.3%115.0133.8Operating profit

-(0.1)1.2Associates

132.6132.6132.6132.6

2006

15.2%15.2%15.2%15.2%115.1115.1115.1115.1Operating profit exOperating profit exOperating profit exOperating profit ex----associates & JV associates & JV associates & JV associates & JV

Change2005£m

Income statementUnderlying

10bps13.2%13.3%Group operating margin

-7.7%7.7%Synovate operating margin

60bps 19.7%20.3%Aegis Media operating margin

10.4%

2006

110bps9.3%Gross margin

Change2005

Margins

* Operating margin is underlying operating profit before associates as a percentage of revenue

(1.2)2.7Associates and JVs

(74.1)(38.8)Net movement in working capital

31.527.5Depreciation, amortisation and impairment

(17.1)(19.4)Dividends paid

(139.3)(139.3)(139.3)(139.3)(40.9)(40.9)(40.9)(40.9)Net cash flow before financingNet cash flow before financingNet cash flow before financingNet cash flow before financing

39.139.139.139.172.872.872.872.8Net cash generationNet cash generationNet cash generationNet cash generation

(29.6)(25.2)Net capital expenditure

(131.7)(69.1)Acquisition payments

(209.5)(209.5)(209.5)(209.5)(228.6)(228.6)(228.6)(228.6)Net debtNet debtNet debtNet debt

4.08.4Other non-cash movements

68.168.168.168.1124.0124.0124.0124.0Operating cash flowOperating cash flowOperating cash flowOperating cash flow

(3.5)(3.8)Other cash flows

(26.7)(34.5)Tax paid

1.2(12.9)Net interest received / (paid)

107.9107.9107.9107.9124.2124.2124.2124.2Operating profit Operating profit Operating profit Operating profit

20052006£m

Cash flow

Working capital

Average cash balance 2005: £294m

Average cash balance 2006: £305m

Capital expenditure

4.71.2Intangible assets

5.15.3IT software

31.327.1Total capital expenditure

6.16.2Furniture, fixtures, equipment & vehicles

8.29.4IT hardware

6.94.7Leasehold improvements

0.30.3Land and buildings

20052006£m

60bps 19.720.3Operating margin (%)

13.7%106.5121.1Operating profit

60bps7.07.6Gross margin (%)

10.3%539.9595.7Revenue

7,829.0

2006

1.0%7,748.6Turnover

Change2005£m

Aegis Media

Financial summary

* Operating margin is underlying operating profit before associates as a percentage of revenue

9.8%380.7418.1EMEA

12.1%118.7133.1Americas

9.9%40.544.5Asia-Pacific

10.3%539.9595.7Worldwide

2006 Change2005£m

Aegis Media

Regional revenue growth

* Operating margin is underlying operating profit before associates as a percentage of revenue

-7.77.7Operating margin (%)

21.7%25.330.8Operating profit

(120)bps65.163.9Gross margin (%)

19.2%215.1256.4Gross profit

401.2

2006

21.4%330.5Revenue

Change2005£m

Synovate

Financial summary

* Operating margin is underlying operating profit before associates as a percentage of revenue

21.4%330.5401.2Worldwide

20.2%69.883.9Asia-Pacific

5.3%127.4134.1Americas

183.2

2006

37.4%133.3EMEA

Change2005£m

Synovate

Regional revenue growth

business review

Robert Lerwill, CEO

2006: best-in-industry growth

7.77.77.77.7 7.67.67.67.6

5.65.65.65.6 5.45.45.45.4

0.60.60.60.61.01.01.01.0

AegisAegisAegisAegis OmnicomOmnicomOmnicomOmnicom PublicisPublicisPublicisPublicis WPPWPPWPPWPP IPGIPGIPGIPG HavasHavasHavasHavas

Organic revenue growth, %

And a consistent record

Source: Carat adspend forecasts

3.4

6.7

5.25.9

4.4

8.4

7.27.7

0

3.4

0

2

4

6

8

10

2002 2003 2004 2005 2006

Market, %

Aegis, %

Success from strategic acquisitions

Good performance from 2005 acquisitions

� earnings enhancing, returning >group cost of capital in year 1

Focus on emerging markets (BRIC+)

� Control Media, New Voice, Integrator, Infocy, AgenciaClick

Drivers of future organic growth

� new services, geographies and people

Our priorities

Closer than ever to clients

Investment for growth

Business transformation

2,691.72,691.72,691.72,691.7(1,133.6)(1,133.6)(1,133.6)(1,133.6)3,825.33,825.33,825.33,825.3Total

625.1625.1625.1625.1(81.3)(81.3)(81.3)(81.3)706.4706.4706.4706.4Asia-Pacific

107.5107.5107.5107.5(610.5)(610.5)(610.5)(610.5)718.0718.0718.0718.0Americas

2,400.92,400.92,400.92,400.9

Gains

1,959.11,959.11,959.11,959.1(441.8)(441.8)(441.8)(441.8)EMEA

NetLosses$m

Aegis Media

Closer than ever to clients

Record new business performanceRecord new business performanceRecord new business performanceRecord new business performance

Average no. of services Average no. of countries

Aegis Media

Closer than ever to clients

Successful ‘more products in more countries’ strategy

11.711.711.711.712.612.612.612.6

14.714.714.714.7

16.716.716.716.7

19.719.719.719.718.118.118.118.1

2001200120012001 2002200220022002 2003200320032003 2004200420042004 2005200520052005 2006200620062006

4.54.54.54.55.05.05.05.0

2005200520052005 2006200620062006

Aegis Media

Investment for organic growth

5,000 Carat people trained in 3C’s

Vizeum footprint expanded throughout Asia

International expansion of Posterscope

‘Globalisation’ of Isobar

� central client resource, global search capability

Investment in products and services

� Avista, CCS

Aegis Media

Business transformationPenetration of amateur & professional online video*Penetration of amateur & professional online video*Penetration of amateur & professional online video*Penetration of amateur & professional online video*

20%20%20%20%

40%40%40%40%

60%60%60%60%

80%80%80%80%

UKUKUKUK Fr.Fr.Fr.Fr. Germ.Germ.Germ.Germ. ItalyItalyItalyItaly USUSUSUS ChinaChinaChinaChina JapanJapanJapanJapan

Adults with broadband who have everAdults with broadband who have everAdults with broadband who have everAdults with broadband who have everwatched/downloaded home videowatched/downloaded home videowatched/downloaded home videowatched/downloaded home video

Adults with broadband who have everAdults with broadband who have everAdults with broadband who have everAdults with broadband who have everwatched/downloaded TV showswatched/downloaded TV showswatched/downloaded TV showswatched/downloaded TV shows

0%0%0%0%

20%20%20%20%

40%40%40%40%

60%60%60%60%

NewsNewsNewsNews MovieMovieMovieMovie

previewspreviewspreviewspreviews

Music &Music &Music &Music &

amateuramateuramateuramateur

videosvideosvideosvideos

TV showsTV showsTV showsTV shows

What type of video content do you watch online?**What type of video content do you watch online?**What type of video content do you watch online?**What type of video content do you watch online?**

21%21%21%21%

17%17%17%17%

16%16%16%16%16%16%16%16%

11%11%11%11%

9%9%9%9%3%3%3%3%3%3%3%3% 4%4%4%4% NewsNewsNewsNews

Movie previewsMovie previewsMovie previewsMovie previewsMusic videosMusic videosMusic videosMusic videosAmateur videosAmateur videosAmateur videosAmateur videosTV showsTV showsTV showsTV showsSports highlightsSports highlightsSports highlightsSports highlightsFull length moviesFull length moviesFull length moviesFull length moviesLive sports eventsLive sports eventsLive sports eventsLive sports eventsOtherOtherOtherOther

Breakdown of online video content**Breakdown of online video content**Breakdown of online video content**Breakdown of online video content**

* OFCOM/Synovate, November 2006, age 18-64** Piper Jaffray & Company, 2006 online media survey

Aegis Media

Business transformation

7

15

20

45

6

0

5

10

15

20

25

2004 2005 2006

% of Aegis Media revenue from digital

% of global adspend

Aegis Media

Business transformation

Digital at the heart of everything

Paid media

� emerging business models

Unpaid media

� engagement is the key today

All about agility and integration

Synovate

Closer than ever to clients

Very successful global client relationships strategy

Closer to global leadership teams

Grew share of roster in all Tier 1 and 2 clients

� local global

� qual quant

� new practices, eg PD&D B&C

Further initiatives and benefits to come

Synovate

Investment for organic growth

Continued investment in practices and industry groups

� Loyalty, Brand & Communications, Product Design & Development

Launch of Brand Value Creator

� “This is fascinating”; “This is very impressive”; “You guys are absolutely at the forefront in terms of thinking and practice”

New therapy monitors

Strong demand for NADA 24

Connecting 51 countries efficiently to global initiatives

Synovate

Business transformation

Appointed global head of operations

Front and back-office systems investment

� WorkBench and ManageMe

Good progress with right-sourcing strategy

� opening off-shore data centres

� reducing CATI in high-cost economies

Synovate

Business transformation

5555

9999

24242424

2005200520052005 2006200620062006 2007e2007e2007e2007e

% US CATI hours out-sourced offshore

Synovate

Business transformation

How we’re moving forward

Closer than ever to clients

Investment for growth

Business transformation

Good prospects for 2007

Favourable fundamentals

� global adspend growth forecast at 5.8% and market research at 4.5%

Well-positioned businesses

� 20% of group revenue from developing markets

� 20% of media revenue from digital

Record net new business won in 2006

Further benefits of product and service investment

Aegis Group plc2006 preliminary results

15 March 2007