Wpp Plc · LSE:WPP
Wpp — Q3 2017 Earnings Presentation
70 slides from Wpp's earnings presentation, October 2017
Slide 1: Trading Statement for Third Quarter 2017
Trading Statement for Third Quarter 2017 London
Slide 2: Contents
Contents 1 Third Quarter 2017 Trading Update 2 A Changing Industry? 3 Strategic Objectives and Structural Change Hard Copy only 4 31 Year History 5 Other Financial Information 2
Slide 3: Third Quarter 2017 Trading Update
1 Third Quarter 2017 Trading Update 3
Slide 4: Highlights: Third Quarter and Year to Date
Third Quarter 2017 Highlights: Third Quarter and Year to Date ▪ Third quarter reported revenue up 1.1% at £3.649bn, -0.4% constant currency and -2.0% like-for-like. ▪ Third quarter net sales growth 2.4% reportable, 0.9% constant currency and -1.1% like-for-like. ▪ 9 month reported revenue up 8.9% at
Slide 5: Summary – Revenue and Net Sales Growth
Third Quarter 2017 Summary – Revenue and Net Sales Growth Revenue Net Sales % Growth Q3 YTD Q3 YTD Like-for-like -2.0 -0.9 -1.1 -0.7 Acquisitions 1.6 2.0 2.0 2.4 Constant currency -0.4 1.1 0.9 1.7 Foreign exchange 1.5 7.8 1.5 8.0 Reportable sterling 1.1 8.9 2.4 9.7 Reportable US dollars¹ 0.8 0.0 2.1
Slide 6: Effects of Currency: Third Quarter
Third Quarter 2017 Effects of Currency: Third Quarter Q3 2017 Q3 2016 Sterling (Weaker)/ Stronger US$ 1.31 1.31 - Currency movements accounted for € 1.11 1.18 -6% 1.5% increase reported revenue and ¥ 145 134 8% net sales, reflecting weakness of £ sterling against most currencies, but Chinese Renminb
Slide 7: Impact of Foreign Exchange
Third Quarter 2017 Impact of Foreign Exchange 2016 FY Act 2017 Q1 Act 2017 Q2 Act 2017 Q3 Act 2017 Q4 Est 2017 FY Est 16% 14% 12% Revenue Net Sales Change versus Prior Year 10% 8% 6% 4% 2% 0% -2% -4% ▪ September YTD tailwind 7.8% revenue and 8.0% net sales. ▪ Full year tailwind ca. 4-5% revenue and
Slide 8: Two Year Cumulative Like-for-Like Revenue Growth
Third Quarter 2017 Two Year Cumulative Like-for-Like Revenue Growth1 % WPP² OMC³ PUB4 DEN5 IPG6 HAV7 Q1 2015 12.2 9.4 4.2 n/a 12.3 10.1 Q2 2015 14.7 11.1 1.9 n/a 11.4 13.4 Q3 2015 12.2 12.6 1.7 n/a 13.4 11.5 Q4 2015 14.5 10.7 6.0 n/a 10.0 6.6 Q1 2016 10.3 8.9 3.8 11.3 12.4 10.5 Q2 2016 8.0 8.7 4.1 1
Slide 9: Revenue and Net Sales by Sector: Third Quarter
Third Quarter 2017 Revenue and Net Sales by Sector: Third Quarter Revenue Net Sales % Change % Change 2017 Reported Constant Like-for- 2017 Reported Constant Like-for- £m Currency like £m Currency like Advertising, Media Investment 1,686 4.1 2.6 -2.6 1,412 5.7 4.2 -1.7 Management Data Investment Man
Slide 10: Revenue and Net Sales by Sector: Year to Date
Third Quarter 2017 Revenue and Net Sales by Sector: Year to Date Revenue Net Sales % Change % Change 2017 Reported Constant Like-for- 2017 Reported Constant Like-for- £m Currency like¹ £m Currency like¹ Advertising, Media Investment 5,175 12.9 4.9 -0.9 4,242 12.9 4.8 -1.7 Management Data Investment
Slide 11: Advertising, Media Investment Management: Third Quarter
Third Quarter 2017 Advertising, Media Investment Management: Third Quarter ▪ Constant currency net sales growth 4.2%, like-for-like -1.7%, improved on quarter two. ▪ Advertising grew in Continental Europe, Latin America and Africa but North America, UK, Asia Pacific and Middle East more difficult. O
Slide 12: Data Investment Management: Third Quarter
Third Quarter 2017 Data Investment Management: Third Quarter ▪ Data investment management constant currency net sales down 1.7%, like-for-like -1.4%, improving trend compared to quarter two and first half. ▪ UK and Latin America growing, all other regions except Africa & Middle East improving over q
Slide 13: Public Relations and Public Affairs: Third Quarter
Third Quarter 2017 Public Relations and Public Affairs: Third Quarter ▪ Public relations and public affairs constant currency net sales down 1.3%, like-for-like -1.4%. ▪ Western Continental Europe, Asia Pacific and Middle East up strongly on quarter two with North America, UK and Latin America weake
Slide 14: Branding and Identity, Healthcare and Specialist Communications: Third Quarter
Third Quarter 2017 Branding and Identity, Healthcare and Specialist Communications: Third Quarter ▪ Constant currency net sales down 1.6%, like-for-like flat, strongest sector and a slight improvement over quarter two. ▪ Branding & identity, digital, eCommerce and shopper marketing and specialist co
Slide 15: Digital across the Group: Third Quarter and Year to Date
Third Quarter 2017 Digital across the Group: Third Quarter and Year to Date ▪ First 9 months of 2017, digital revenue $5.7bn or over 41% of total revenue (2016: $5.4bn, over 38%), up 7% constant currency, up well over 2% like-for-like with net sales up almost 3% on the same basis. ▪ The number of pe
Slide 16: Revenue and Net Sales by Region: Third Quarter
Third Quarter 2017 Revenue and Net Sales by Region: Third Quarter Revenue Net Sales % Change % Change 2017 Reported Constant Like-for- 2017 Reported Constant Like-for- £m Currency like £m Currency like North America 1,317 -1.9 -2.4 -5.1 1,157 -1.4 -1.9 -4.9 UK 475 3.1 3.1 1.8 405 2.8 2.8 2.0 Western
Slide 17: Revenue and Net Sales by Region: Year to Date
Third Quarter 2017 Revenue and Net Sales by Region: Year to Date Revenue Net Sales % Change % Change 2017 Reported Constant Like-for- 2017 Reported Constant Like-for- £m Currency like £m Currency like North America 4,084 8.0 -1.1 -3.7 3,566 8.9 -0.2 -3.1 UK 1,454 4.8 4.8 3.6 1,219 4.2 4.2 3.2 Wester
Slide 18: Revenue Growth by Region
Third Quarter 2017 Revenue Growth¹ by Region 8.2% CENTRAL & EASTERN EUROPE 0.9% Q3 YTD Q3 % 1.8% Mature Markets -2.7% -1.3% UNITED YTD % KINGDOM “Fast Growth” Markets -0.4% 0.1% 3.6% -5.1% Total -2.0% -0.9% NORTH AMERICA -0.9% WESTERN -3.7% CONTINENTAL EUROPE 0.2% -4.5% ASIA PACIFIC -1.5% 9.3% 1.7%
Slide 19: Net Sales Growth by Region
Third Quarter 2017 Net Sales Growth¹ by Region 5.3% CENTRAL & EASTERN EUROPE 0.7% Q3 YTD Q3 % 2.0% Mature Markets -2.0% -1.1% UNITED YTD % KINGDOM “Fast Growth” Markets 0.9% 0.1% 3.2% -4.9% Total -1.1% -0.7% NORTH AMERICA 1.6% WESTERN -3.1% CONTINENTAL EUROPE 0.3% -1.4% ASIA PACIFIC -0.8% 7.3% -0.1%
Slide 20: Top Markets - Around 68% of Revenue and Net Sales
Third Quarter 2017 Top 6 Markets - Around 68%¹ of Revenue and Net Sales YTD Like-For-Like Revenue Down 2.2%¹ and Net Sales Down 1.5%¹ Including associates: Revenue $5.1bn $2.1bn $0.9bn $0.9bn $0.6bn $0.5bn People ‘000² 26 17 8 13 4 5 USA UK Germany Greater China3 ANZ4 France Revenue Net Sales Revenu
Slide 21: BRICs Markets – Almost 12% of Revenue and Net Sales
Third Quarter 2017 BRICs Markets – Almost 12%¹ of Revenue and Net Sales YTD Like-For-Like Revenue Down 1.7%¹ and Net Sales Down 0.9%¹ Including associates: Revenue $0.9bn $0.4bn $0.3bn $0.1bn WPP Rank² #4 #9 #12 #21 People ‘000³ 13 20 7 2 Greater China4 India Brazil Russia Revenue Net Sales Revenue
Slide 22: Growth by Region: Third Quarter
Third Quarter 2017 Growth by Region: Third Quarter ▪ North America constant currency net sales down 1.9%, like-for-like -4.9%, weakest performing region and worse than quarter two and first half. Further softness across most businesses, although data investment management and parts of the Group’s sp
Slide 23: Net Sales Growth by Country: Third Quarter
Third Quarter 2017 Net Sales Growth by Country: Third Quarter Net Sales Growth1 Top Countries² More than 10% Argentina, Mexico, Poland 5% to 10% Indonesia, Philippines, Spain, Sweden, Thailand, Turkey Belgium, Brazil, Greater China³, Mainland China, Denmark, Dubai, 0% to 5% France, Italy, Switzerlan
Slide 24: Net Sales Growth by Category: Third Quarter
Third Quarter 2017 Net Sales Growth by Category: Third Quarter Net Sales Growth¹ Categories More than 5% Electronics, Media & Entertainment 0% to 5% Computers, Drinks, Financial Services, Oil, Retail Automotive, Food, Government, Personal Care & Drugs, Telecommunications, Less than 0% Travel & Airli
Slide 25: Trade Estimates of Major New Business Wins (1)
Third Quarter 2017 Trade Estimates of Major New Business Wins (1) WPP Agency Incumbent Account Office Billings($m) MediaCom HAV/OMC PSA Global 998 Sanofi Partnership/Mindshare PUB Sanofi Global 600 W Partnership OMC Walgreens Boots Alliance Global 600 Team L’Atelier PUB LVMH APAC 500 Grey/MediaCom P
Slide 26: Trade Estimates of Major New Business Wins (2)
Third Quarter 2017 Trade Estimates of Major New Business Wins (2) WPP Agency Incumbent Account Office Billings($m) Wavemaker IND ITC Industries India 75 Ogilvy/OgilvyOne Grey Vodafone UK 70 Wunderman IND Samsung EMEA 70 Geometry/Wunderman PUB/OMC/IND Telkom South Africa South Africa 64 MediaCom OMC
Slide 27: Trade Estimates of Major New Business Losses
Third Quarter 2017 Trade Estimates of Major New Business Losses WPP Agency Winning Agency Account Office Billings($m) Grey IND/Other Coty Global 330 Wavemaker PUB KFC Global 230 Ogilvy DEN American Express Global 200 Mindshare PUB Mattel USA 150 Wavemaker HAV Michelin Global 100 JWT PUB Kellogg’s US
Slide 28: Internal Estimates of Net New Business Wins
Third Quarter 2017 Internal Estimates of Net New Business Wins: Third Quarter and Year to Date 2017 Third Quarter 2017 YTD 2016 YTD ($m) Creative Media Total Total Total Advertising 316 1,625 1,941 5,043 4,554 Other Businesses 176 - 176 1,320 820 2017 492 1,625 2,117 6,363 5,374 28
Slide 29: Major New Business Wins/Losses Since October
Third Quarter 2017 Trade Estimates of Major New Business Wins/Losses Since 1 October WPP Agency Incumbent Account Office Billings($m) MediaCom Wavemaker MetLife USA 75 WINS MediaCom DEN/PUB Victorian Government Australia 70 MediaCom PUB/IPG/DEN AB InBev Latin America 60 WPP Agency Winning Agency Acc
Slide 30: Cash Flow and Net Debt
Third Quarter 2017 Cash Flow and Net Debt ▪ September YTD average net debt up £519m to £5.036bn, compared to £4.517bn in 2016, at 2017 exchange rates. ▪ Net acquisitions (including earnouts) for September YTD £409m (2016 - £370m) and share buy-backs £396m (2016 - £342m). ▪ 30 September net debt up £
Slide 31: Acquisitions and Investments – Year to Date
Third Quarter 2017 Acquisitions and Investments – Year to Date Fast Growth Quantitative & Markets Digital 88rising (USA)² The Cocktail (Spain) Deeplocal (USA) 3Ti (China) DIS/PLAY (Denmark) Newsaccess (Ireland) CBC (China)¹,² Eightytwenty (Ireland) Pierry (USA) Bruketa&Žinić (Croatia) CMC (China)¹,²
Slide 32: Uses of Free Cash Flow
Third Quarter 2017 Uses of Free Cash Flow Sept YTD Sept YTD Full Year Category Target 2017 2016 2016 Acquisitions (excluding earnouts)¹ £300-£400m² £262m £305m £605m Share buy-backs n/a £396m³ £342m £427m % of issued share capital 2%-3% 1.9% 1.6% 2.0% Dividend increase n/a 16% 23% 27% Pay-out ratio
Slide 33: Debt Maturity Profile
Third Quarter 2017 Debt Maturity Profile £m at 30 September 2017 700 £ Total £ Total Credit Drawn 650 £ bonds £400m (2.875% Sep ’46) 400 400 600 US bond $500m (5.625% Nov ’43) 373 373 550 US bond $300m (5.125% Sep ’42) 224 224 500 Eurobonds €600m (1.625% Mar ’30) 529 529 450 Total Drawn (£m) Eurobon
Slide 34: A Changing Industry?
2 AChanging Industry? W PP
Slide 35: Are Google and Facebook Eating Our Lunch? Top Media Owners
A Changing Industry? First - Are Google and Facebook Eating Our Lunch? Top 10 Media Owners Ranked by WPP Spend 2017¹ vs. 2012 2017¹ Top Media Owners 2012 Top Media Owners 1 Google 1 Comcast 2 21st Century Fox, NewsCorp, Sky, Foxtel 2 NewsCorp², Sky, Foxtel 3 Facebook³ 3 Disney 4 Disney 4 Google 5 Co
Slide 36: WPP Digital Billings Growing in Line With The Market
A Changing Industry? First - Are Google and Facebook Eating Our Lunch? WPP Digital Billings Growing in Line With The Market…. And Maintaining Market Share…. 40% 38% 20% 20% 19% 18% 34% 30% 10% Digital³ 26% 26% 23% 23% 20% 0% 2015A 2016A 2017E 2015A 2016A 2017E 2% 1% 20% 20% 19% 20% 0% -1% -1% -2% -2
Slide 37: Are Consultants Eating Our Lunch? Top Digital Agencies
A Changing Industry? Second - Are Consultants Eating Our Lunch? Top Digital Agencies – Fake News? 2016 Revenue - Ad Age Estimates¹ Actual 2016 Digital Revenue Agency Rank $bn Agency Rank $bn Accenture Interactive 1 4.4 WPP² 1 7.5 Agency IBM iX 2 3.0 Publicis³ 2 5.8 Consultant Deloitte Digital 3 2.6
Slide 38: Significant Wins/Losses vs. Consultants
A Changing Industry? Second - Are Consultants Eating Our Lunch? Estimate¹ of Significant September YTD Wins/Losses vs. Consultants WPP Agency Consultant Account Revenue ($m) Wunderman² Accenture Telecoms (confidential) 8 Total Pitches Number Revenue ($m) Wunderman²/MSixDeloitte Digital/Heat Manulife
Slide 39: Low Cost of Capital Causing Distortion: The Legacy Spectrum
A Changing Industry? Third - Low Cost of Capital Causing Distortion The Legacy Spectrum Activist Zero Based Disrupters Investors Budgeters Carl Icahn Bill Ackman Dan Loeb¹ Nelson Peltz¹ Paul Singer Keith Meister ¹ Dan Loeb, Nelson Peltz strong proponents of increased marketing spend 39
Slide 40: Leading Consumer Packaged Goods Clients Published Results Trends
A Changing Industry? Third - Low Cost Of Capital Causing Distortion Leading Consumer Packaged Goods Clients Published Results Trends ▪ Like-for-like revenue growth improving to ca 2%. ▪ Pricing leads but volumes starting to pick up helped by investment in advertising. Q4/16 Q1/17 Q2/17 Q3/17 Organic
Slide 41: Four FMCG Companies – Volume/Price Growth Trends
A Changing Industry? Third - Low Cost Of Capital Causing Distortion Four FMCG Companies – Published Results and Volume/Price Growth Trends Currency Currency Currency Currency % % % % Source: Company Reports, Bloomberg 2017 41
Slide 42: S&P 500 Revenue Growth by Sector
A Changing Industry? Third - Low Cost Of Capital Causing Distortion S&P 500 Revenue Growth by Sector Q4 2016 – Q3 2017 Sector Q4 2016 Q1 2017 Q2 2017 Q3 2017¹ Average P/E Energy 4.2% 34.3% 15.8% 16.4% 17.7% 34.8 Information Technology 7.2% 8.2% 8.7% 9.6% 8.4% 19.3 Utilities 8.1% 7.2% 6.4% -1.9% 4.9%
Slide 43: The New Normal
A Changing Industry? The New Normal Low GDP Low or No Growth Inflation Little Pricing High Focus Power on Costs 43
Slide 44: Short Executive Life Expectancy
A Changing Industry? Short Executive “Life Expectancy” ▪ CEO tenure 6 to 7 years (FTSE 100 5.9 years, S&P 500 7.1 years) ▪ CFO tenure 4 to 5 years (FTSE 100 4.1 years, S&P 500 4.8 with 50% less than 3 years) ▪ CMO tenure 2 to 3 years (S&P 45 months) 44
Slide 45: S&P Dividends & Buy-Backs as % of Operating Earnings
A Changing Industry? S&P 500 Dividends & Buy-Backs as % of Operating Earnings 140% 131% 122% 120% 114% 110% 104% 100% of operating earnings 99% 98% 98% 95% 95% 100% 94% 89% 88% 87% 87% 85% 83% 83% 81% 77% 78% 78% 80% 74% 74% 71% 71% 71% 68% 67% 68% 63% 59% 59% 60% 60% 40% 20% 0% Q1'09 Q2'09 Q3'09 Q4
Slide 46: Highest FTSE EPS in Three Years, Stable Pay-Out Ratio
A Changing Industry? Highest FTSE 100 EPS in Three Years, Stable Pay-Out Ratio in Q2/Q3 2017 110% 75% FTSE 100 EPS FTSE 100 pay-out ratio WPP pay-out ratio 70% 100% 65% 90% 60% 80% 55% EPS Payout Ratio Q3/11 = 100% 50% 70% 45% 60% 40% 50% 35% 40% 30% Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q
Slide 47: US Total Investment as % of GDP
A Changing Industry? US Total Investment as % of GDP 47
Slide 48: Strong Brands Generate Superior Shareholders’ Return
A Changing Industry? Strong Brands Generate Superior Shareholders’ Return Top 10 Global Brands Outperform S&P 500 by over 50% and MSCI over 3x Over Last 11 Years 48
Slide 49: Strategic Objectives and Structural Change
3 Strategic Objectives and Structural Change 49
Slide 50: Horizontality, Fast Growth Markets, New Media and Data Investment Management
Strategic Objectives and Structural Change Horizontality, Fast Growth Markets, New Media and Data Investment Management ▪ Horizontality – first critical priority - ensuring our people work seamlessly together through client teams and country and sub-regional managers to provide integrated benefit fo
Slide 51: Horizontality, Fast Growth Markets, New Media and Data Investment Management
Strategic Objectives and Structural Change Horizontality, Fast Growth Markets, New Media and Data Investment Management 51
Slide 52: Horizontality Matrix
Strategic Objectives and Structural Change Horizontality Matrix Specialist Communications Digital, eCommerce, Shopper Marketing Media Data Public Relations Branding Health & Specialist Advertising Investment Investment & Public Affairs & Identity & Wellness Communications Management Management Globa
Slide 53: Horizontality - Critical Priority
Strategic Objectives and Structural Change Horizontality - Critical Priority ▪ People, clients, acquisitions. ▪ Ensure our people work across our businesses and geographies to deliver best resources to clients. ▪ Deliver specialist skills (e.g. digital, shopper, analytics, sustainability, retailing,
Slide 54: Third Quarter and Year to Date Summary
Strategic Objectives and Structural Change Third Quarter and Year to Date Summary ▪ Year to date reported net sales growth 9.7%, constant currency 1.7% but like-for-like -0.7%. ▪ Constant currency revenue growth in quarter 3 in the United Kingdom and Western Continental Europe and advertising and me
Slide 55: Outlook for 2017
Outlook for 2017 ▪ Our forecasts indicate − Like-for-like revenue and net sales growth broadly flat for the year. − Margin improvement now targeted flat excluding currency, off a constant currency base margin of 17.3%. − Acquisitions to add 2-3% to revenue and net sales. ▪ At current exchange rates
Slide 56: 31 Year History (Hard Copy Only)
4 31 Year History (Hard Copy Only) 56
Slide 57: WPP Reported Revenue
31 Year History WPP Reported Revenue £’m 16,000 15,000 14,389 14,000 13,000 12,235 12,000 11,529 11,019 11,000 10,373 31 year CAGR 30% 10,022 10,000 9,331 9,000 8,684 8,000 7,477 7,000 6,185 5,908 6,000 5,374 5,000 4,300 4,0223,9084,106 4,000 2,981 3,000 2,173 2,000 1,555 1,6911,7471,918 1,2641,2041
Slide 58: WPP Net Sales
31 Year History WPP Net Sales £’m 14,000 13,000 12,398 12,000 11,000 10,524 10,065 10,000 10,076 9,515 9,239 9,000 31 year CAGR 30% 8,561 7,981 8,000 7,009 7,000 5,850 6,000 5,611 5,133 5,000 4,074 3,790 3,690 3,869 4,000 3,000 2,736 1,855 2,000 1,633 1,328 1,437 1,469 1,076 1,016 1,070 1,209 1,204
Slide 59: WPP Organic Growth
31 Year History WPP Organic Growth % 20 18.6 Organic Revenue Growth Organic Net Sales Growth 15.0 15 13.9 14.1 11.8 10 31 year average organic revenue growth : 5.5% 8.0 8.3 8.4 8.0 8.0 8.2 6.3 5.7 5.5 5.4 5.0 5.3 5.3 5.3 5.2 5 4.0 4.0 3.1 3.5 3.3 3.33.0 2.7 2.9 0.7 N/A 0 -3.0 -5 -4.7 -5.9 -8.1 -10 N
Slide 60: WPP PBIT and Margins
31 Year History WPP PBIT and Margins PBIT PBIT margin 2004 onwards £’m % PBIT reported 17.4% 18% under IFRS 16.9% 16.5%16.7% 15.9%16.0% 16.1% 2,000 15.7%15.8% 15.5% 15.3% 16% 15.0% 14.8% 14.9%14.7% 15.3% 14.4% 14.0% 13.8%13.7% 15.0% 15.0% 15.1% 14.8% 14% 14.5% 13.0% 14.5% 14.3% 14.3% 12.7% 14.0% 14.
Slide 61: WPP Headline Diluted EPS
31 Year History WPP Headline Diluted EPS Post 1992 Rights Issue pence 120 113.2 100 93.6 84.9 80.8 80 23 Year CAGR: 15% 73.4 67.7 60 55.5 56.7 45.8 44.4 42.0 40 36.0 30.9 32.3 30.3 29.0 27.9 22.7 23.8 18.8 20 15.7 13.5 9.4 5.0 6.5 0 UK GAAP IFRS Note: 1993 adjusted to reflect 1992 rights issue. Head
Slide 62: Other Information (Hard Copy only)
5 Other Information (Hard Copy only) 62
Slide 63: US Dollar Monthly Average and Quarterly Variance
Third Quarter 2017 21 month US$ range 1.23 to 1.45 USD Monthly Average Quarterly % Variance vs PY 1.50 £ (Weakness)/Strength 10% 1.45 5% 6.3% 1.40 2017 0% Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 2016 -0.3% 1.35 -5.5% -6.4% -5% -10.8% -13.4% -15.3% 1.30 -18.1% -10% 1.25 -15% 1.20 -20% Jan Feb Mar Apr May J
Slide 64: Euro Monthly Average and Quarterly Variance
Third Quarter 2017 21 month € range 1.10 to 1.33 EUR Monthly Average Quarterly % Variance vs PY 1.35 £ Weakness 0% Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 1.30 -2% -2.8% -3.5% -5.3% -4% -8.3% -8.4% 1.25 -10.4% 2017 -6% 2016 -8% -15.6% 1.20 -16.9% -10% 1.15 -12% -14% 1.10 -16% 1.05 -18% Jan Feb Mar Apr May
Slide 65: Fast Growth Regions - Quarterly % Variance vs PY
Third Quarter 2017 Fast Growth Regions - Quarterly % Variance vs PY 10% Asia Pacific Latin America 30% 5% 20% 4.8% 0% Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 10% 21.9% -0.1% -3.2% -1.0% 13.6% -5% -11.0% 7.3% 1.3% -15.4% 0% -10% -18.5% Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 -20.5% -3.0% -4.5% -13.6% -10% -15% -
Slide 66: Acquisitions Since July: Design Bridge
Third Quarter 2017 Acquisitions Since 1 July Design Bridge – UK (WPP) Design Bridge is a leading independent and highly-awarded brand design agency. Design Bridge combines strategic thinking, intuition and creative excellence to bring brands to life through great ideas that connect with people. Foun
Slide 67: Acquisitions Since July: Gimlet
Third Quarter 2017 Acquisitions Since 1 July Gimlet¹ – USA (WPP Ventures) Gimlet is an award-winning global podcasting company based in the US. Gimlet’s advertising and branded-content clients include Alphabet Inc., Ford Motor Company, PepsiCo, Match Group, eBay, Blue Apron, Goldman Sachs and Micros
Slide 68: Acquisitions Since July: The Mighty
Third Quarter 2017 Acquisitions Since 1 July The Mighty¹,² – USA (WPP Health & Wellness) The Mighty is an online community platform for people facing health challenges and disabilities. The Mighty employs approximately 30 people and is based in Burbank, CA, with an office in New York. It was founded
Slide 69: Acquisitions Since July: Sensio, thjnk, Within
Third Quarter 2017 Acquisitions Since 1 July Sensio¹ – France (Grey) Sensio is a full service digital agency that offers services including consulting, design, technology and customer acquisition. Founded in 1998, the agency has around 75 people and is headquartered in Paris. Clients include Groupe
Slide 70: Trading Statement for Third Quarter 2017
Trading Statement for Third Quarter 2017 London