Wpp Plc · LSE:WPP
Wpp — FY2016 Earnings Presentation
148 slides from Wpp's earnings presentation, March 2017
Slide 1: Results for 2016
W PP Results for 2016 London
Slide 2: Contents
Contents 1 Results for 2016 2 GroupM – This Year Next Year 3 Four Core Strategic Priorities 4 Key Objectives 5 Outlook and Conclusions Hard Copy only 6 31 Year History 7 Other Financial Information 8 Structure and Competitive Position 2
Slide 3: Results for 2016
1 Results for 2016 CANNES LIONS 2011-2016 D HOLDING COMPANY OF THE YEAR gE / EFFIE AWARDS 2012-2016 MOST EFFECTIVE HOLDING COMPANY W PP
Slide 4: Another Record Year With Strong Currency Tailwinds
Results for 2016 Another Record Year With Strong Currency Tailwinds, Particularly in Second Half Reported billings up 16.0% at £55.245bn, 5.5% constant currency and 3.3% like-for-like. Reported revenue up 17.6% at £14.389bn, 7.2% constant currency and 3.0% like-for-like. Net sales growth 17.8%
Slide 5: Another Record Year With Strong Currency Tailwinds
Results for 2016 Another Record Year With Strong Currency Tailwinds, Particularly in Second Half Average constant currency net debt up £382m to £4.340bn, reflecting significant net acquisition spend, buy-backs and dividends over £1.7bn. Average net debt to EBITDA ratio under 1.8x almost in middle
Slide 6: Headline Performance versus Consensus
Results for 2016 Headline¹ Performance versus Consensus Actual Consensus £m Results Median² +/- Net Sales 12,398 12,322 76 EBITDA 2,420 2,354 66 PBIT 2,160 2,127 33 Net finance costs (174) (176) 2 PBT 1,986 1,951 35 Diluted EPS 113.2p 111.9p 1.3p Net Sales PBIT Margin 17.4% 17.3% +0.1³ ¹ Figures bef
Slide 7: Headline Performance versus Target
Results for 2016 Headline¹ Performance versus Target Actual Target Achieved Like-for-like revenue growth 3.0% Well over 3% Like-for-like net sales growth 3.1% 3%+ Like-for-like net sales margin improvement +0.3² +0.3² Reportable diluted EPS growth 20.9% 10-15% Constant currency diluted EPS g
Slide 8: Summary Headline Results at a Glance
Results for 2016 Summary Headline¹ Results at a Glance % Change Year to 31 December 2016 2015 Reported Constant Currency Revenue £m 14,389 12,235 17.6 7.2 Net Sales £m 12,398 10,524 17.8 7.4 Net Sales Margin 17.4% 16.9% +0.5 +0.3² PBIT £m 2,160 1,774 21.8 8.5 EBITDA £m 2,420 2,002 20.8 8.0 Tax Rate
Slide 9: Revenue Growth
Results for 2016 Revenue Growth 10.4% +4.2% £14.4bn +3.0% +17.6% £12.2bn 2015 Organic Acquisitions FX 2016 9
Slide 10: Net Sales Growth
Results for 2016 Net Sales Growth 10.4% +4.3% £12.4bn +3.1% +17.8% £10.5bn 2015 Organic Acquisitions FX 2016 10
Slide 11: Impact of Foreign Exchange
Results for 2016 Impact of Foreign Exchange 2015 FY Act 2016 Q1 Act 2016 Q2 Act 2016 Q3 Act 2016 Q4 Act 2016 FY Act 20% 15% Revenue Net Sales Change versus Prior Year 10% 5% 0% -5% Full year tailwind 10.4% revenue and net sales. Second half tailwind 17.2% revenue, 17.3% net sales. 11
Slide 12: Unaudited Headline IFRS Income Statement
Results for 2016 Unaudited Headline¹ IFRS Income Statement % Change Year to 31 December 2016 2015 Constant £m £m Reported Currency Revenue 14,389 12,235 17.6 7.2 Net sales 12,398 10,524 17.8 7.4 Operating profit 2,095 1,705 22.9 9.5 Income from associates 65 69 -5.5 -17.6 PBIT 2,160 1,774 21.8 8.5 N
Slide 13: Unaudited IFRS Income Statement
Results for 2016 Unaudited IFRS Income Statement % Change Year to 31 December 2016 2015 Reported Constant £m £m Currency Revenue 14,389 12,235 17.6 7.2 Net sales 12,398 10,524 17.8 7.4 Operating profit pre exceptional & goodwill/intangibles 2,095 1,705 22.9 9.5 Net exceptional gain¹ 164 82 - - Goodw
Slide 14: Net Exceptional Gain of £164m
Results for 2016 Net Exceptional Gain¹ of £164m Year to 31 December 2016 £m Imagina Group 260 Grass Roots Group 27 STW² (24) comScore (80) Other 8 Net exceptional gain from disposals, step-ups and write-downs 191 IT restructuring cost (27) Net exceptional gain 164 ¹ Being net amount of gains/losses
Slide 15: % Growth Versus Prior Year
Results for 2016 % Growth Versus Prior Year Revenue Net Sales Headline1 Headline1 PBIT EPS Like-for-like 3.0 3.1 4.7 n/a Acquisitions 4.2 4.3 3.8 n/a Constant currency 7.2 7.4 8.5 7.7 Foreign exchange 10.4 10.4 13.3 13.2 Reportable sterling 17.6 17.8 21.8 20.9 Reportable US dollars² 3.7 3.8 5.9 4.9
Slide 16: Revenue and Net Sales by Sector
Results for 2016 Revenue and Net Sales by Sector Revenue Net Sales % Change % Change 2016 Reported Constant Like-for- 2016 Reported Constant Like-for- £m Currency like¹ £m Currency like¹ Advertising, Media Investment 6,548 17.9 7.7 4.7 5,413 16.4 6.5 3.7 Management Data Investment Management 2,661 9
Slide 17: Revenue and Net Sales by Region
Results for 2016 Revenue and Net Sales by Region Revenue Net Sales % Change % Change 2016 Reported Constant Like-for- 2016 Reported Constant Like-for- £m Currency like £m Currency like North America 5,281 17.6 3.9 2.0 4,604 18.6 4.8 2.8 UK 1,866 5.0 5.0 1.8 1,588 5.5 5.5 2.1 Western Continental Euro
Slide 18: Two Year Cumulative Like-for-Like Growth
Results for 2016 WPP Two Year Cumulative Like-for-Like Growth1 - Consistent Performance % Revenue Net Sales 1 Year 2 Year 1 Year 2 Year H1 2014 8.7 11.1² 4.1 6.5² H2 2014 7.7 12.3² 2.5 6.8² H1 2015 4.9 13.6² 2.3 6.4² H2 2015 5.8 13.5² 4.1 6.6² H1 2016 4.3 9.2² 3.8 6.1² H2 2016 1.8 7.6² 2.4 6.5² ¹Two
Slide 19: Two Year Cumulative Like-for-Like Revenue Growth
Results for 2016 Two Year Cumulative Like-for-Like Revenue Growth1 % WPP3 OMC2,4 Pub2,5 IPG2,6 HAV2,7 H1 2014 11.1 7.9 5.1 7.9 6.2 H2 2014 12.3 10.3 4.2 8.8 6.4 H1 2015 13.6 10.3 3.0 11.8 12.0 H2 2015 13.5 11.7 3.9 11.7 9.1 H1 2016 9.2 8.8 4.0 11.3 9.3 H2 2016 7.6 8.9 0.4 11.1 7.4 ¹ Two year trend i
Slide 20: Headline PBIT and Net Sales Margin by Sector
Results for 2016 Headline¹ PBIT and Net Sales Margin by Sector Headline PBIT Headline Margin 2016 2015 2016 2015 £m £m % % Advertising, Media Investment 1,027 860 19.0 18.5 Management² Data Investment Management 351 286 17.6 16.2 Public Relations & Public Affairs² 180 145 16.7 15.6 Branding & Identi
Slide 21: Headline PBIT and Net Sales Margin by Region
Results for 2016 Headline¹ PBIT and Net Sales Margin by Region Headline PBIT Headline Margin 2016 2015 2016 2015 £m £m % % North America 895 728 19.4 18.8 UK 261 243 16.5 16.2 Western Continental Europe 352 277 14.5 13.7 Asia Pacific, Latin America, Africa & Middle 652 526 17.2 16.8 East and Central
Slide 22: Net Sales Growth by Region
Results for 2016 Net Sales Growth¹ by Region 8.2% CENTRAL & EASTERN EUROPE 3.4% Q4 FY Q4% ‐0.6% Mature Markets 0.9% 2.9% UNITED FY% KINGDOM “Faster Growing” Markets 4.8% 3.5% 2.1% 0.5% Total 2.1% 3.1% NORTH AMERICA 2.7% WESTERN 2.8% CONTINENTAL EUROPE 4.5% 3.6% ASIA PACIFIC Traditional 3.8% Media 8.
Slide 23: Top Markets
Results for 2016 Top 6 Markets - Over 68%¹ of Revenue and Net Sales, Like-For-Like Revenue Growth of 1.9%¹ and Net Sales Growth of 2.7%¹ Including associates: Revenue $6.9bn $3.4bn $1.6bn $1.3bn $0.8bn $0.7bn People ‘000² 26 16 14 8 5 5 USA UK Greater China3 Germany ANZ5 France Revenue Net Sales Rev
Slide 24: BRICs Markets
Results for 2016 BRICs Markets - Over 12%¹ of Revenue and Net Sales, Like-For-Like Revenue Growth of 1.7%¹ and Net Sales Growth of 2.4%¹ Including associates: Revenue $1.6bn $0.6bn $0.4bn $0.2bn WPP Rank² #3 #7 #13 #22 People ‘000³ 14 15 7 2 Greater China4 India Brazil Russia Revenue Net Sales Reven
Slide 25: Revenue Growth by Country
Results for 2016 Revenue Growth by Country Revenue Growth1 Countries More than 20% Argentina, Turkey 10% to 20% India, Indonesia, Mexico 5% to 10% Denmark, Germany, Italy, Philippines, Sweden 3%² to 5% Belgium, Canada, Russia, Spain, Switzerland Australia, Brazil, Greater China³, Mainland China, Fra
Slide 26: Revenue Growth by Category
Results for 2016 Revenue Growth by Category Revenue Growth¹ Categories Automotive, Food, Retail, Media & Entertainment, Telecommunications, More than 5% Travel & Airline 3%² to 5% Electronics Computers, Drinks, Financial Services, Government, Oil, Personal Less than 3%² Care & Drugs ¹ Like-for-like
Slide 27: Trade Estimates of Major New Business Wins
Results for 2016 Trade Estimates of Major New Business Wins WPP Agency Incumbent Account Office Billings($m) Haworth¹ PUB Walmart USA 900 GroupM Haworth¹ Target USA 686 MediaCom DEN/OMC Sony Playstation Global 421 MediaCom PUB Procter & Gamble China 266 Team Connect Maxus/MEC BT/EE UK 248 The & Part
Slide 28: Trade Estimates of Major New Business Wins
Results for 2016 Trade Estimates of Major New Business Wins WPP Agency Incumbent Account Office Billings($m) MEC PUB BMW UK 55 MediaCom PUB Unilab Philippines 55 MEC HAV Nationwide UK 50 Mediacom IPG NewsCorp Australia 50 Mediacom N/A Mars Australia,Sweden,Finland 47 MediaCom Maxus Bolton Italy Ital
Slide 29: Trade Estimates of Major New Business Losses
Results for 2016 Trade Estimates of Major New Business Losses WPP Agency Winning Agency Account Office Billings($m) MediaCom OMC Volkswagen Global 2,179 MEC/Grey OMC AT&T USA 1,800 Haworth¹ GroupM Target USA 686 Maxus PUB Fiat EMEA,APAC 500 Mindshare IND LG Electronics USA 297 Maxus/MEC Team Connect
Slide 30: Internal Estimates of Net New Business Wins
Results for 2016 Internal Estimates of Net New Business Wins ($m) Creative Media Total Advertising 1,709 3,727 5,436 Other Businesses 1,321 - 1,321 2016 3,030 3,727 6,757 30
Slide 31: Trade Estimates of Major New Business Wins/Losses Since 1 January
Results for 2016 Trade Estimates of Major New Business Wins/Losses Since 1 January WPP Agency Incumbent Account Office Billings($m) Team WBA OMC Walgreens Boots Alliance Global 600 Wunderman OgilvyOne BT UK 190 WINS Mindshare IPG Tyson Foods USA 135 M/Six¹ OMC Sainsbury’s UK 75 WPP Agency Winning Ag
Slide 32: Cash Flow
Results for 2016 Cash Flow £m 2016 2015 Operating profit 2,063 1,632 Non-cash compensation 106 99 Depreciation & amortisation charges 455 384 Net interest paid & similar charges (168) (151) Tax paid (414) (301) Net cash generation 2,042 1,663 32
Slide 33: Uses of Cash Flow
Results for 2016 Uses of Cash Flow £m 2016 2015 Net cash generation 2,042 1,663 Capital expenditure (285) (246) Acquisition payments (697) (693) - Net initial payments¹ (605) (649) - Earnout payments/loan note redemptions (92) (44) Other² (172) (154) Net cash inflow before distributions 888 570 Dist
Slide 34: Net Debt – 31 December 2016
Results for 2016 Net Debt – 31 December 2016 £m 2016 2015 % Variance FY average net debt on constant currency basis (4,340) (3,958) -10% FY average net debt on reportable basis (4,340) (3,562) -22% Net debt at 31 December on constant currency basis (4,131) (3,677) -12% Net debt at 31 December on rep
Slide 35: Net Debt – Full Year Movement
Results for 2016 Net Debt – Full Year Movement 31‐Dec‐15 FX STW Debt Acquired Net Cash Change Net Trade Working Capital Other¹ 31‐Dec‐16 ‐£3,211m ‐£920m ‐£466m ‐£4,131m ‐£144m ‐£156m +£118m ‐£272m 1 Other receivables, payables and provisions 35
Slide 36: Historic Average Net Debt/Headline EBITDA
Results for 2016 Historic Average Net Debt/Headline EBITDA £m Average net debt/headline EBITDA 5,000 2015 Average net debt at 2016 FX rates Average net debt 3.0 EBITDA 2015 EBITDA at 2016 FX rates 4,500 Average net debt/EBITDA 2.5 4,000 3,500 2.0 3,000 2,500 ) Target average net debt/headline EBITDA
Slide 37: Debt Maturity Profile
Results for 2016 Debt Maturity Profile £m at 31 December 2016 Total Total 700 Credit Drawn 650 £ bonds £400m (2.875% Sep ’46) 400 400 600 US bond $500m (5.625% Nov ’43) 405 405 550 US bond $300m (5.125% Sep ’42) 243 243 500 Eurobonds €600m (1.625% Mar ’30) 513 513 450 Eurobonds €750m (2.25% Sep '26)
Slide 38: Uses of Free Cash Flow
Results for 2016 Uses of Free Cash Flow Category Target FY 2016 FY 2015 Acquisitions (excluding earnouts)¹ £300-£400m² £605m £649m Share buy-backs: n/a £427m £588m % of issued share capital 2%-3% 2.0% 3.0% Dividend increase n/a 27% 17% Pay-out ratio 50% 50% 48% Headroom: Undrawn facilities & surplus
Slide 39: Taxation
Results for 2016 Taxation Headline tax rate of 21.0%, compared to 19.0% for 2015. Given the Group’s mix of profits and the changing international tax environment, the tax rate is expected to increase slightly over the next few years. Reported tax rate of 20.6% in 2016 (2015 – 16.6%). Cash tax
Slide 40: Earnings and EPS
Results for 2016 Earnings and EPS¹ Pence/ £m share 1,600 120p 113.2p Earnings 21% 1,400 EPS 93.6p 100p 7 Year CAGR: 14% 10% 1,200 84.9p 80.8p 5% 10% 80p 8% 73.4p 1,000 67.7p 19% 800 56.7p 60p 28% 44.4p 600 40p 400 20p 200 0 0p 2009 2010 2011 2012 2013 2014 2015 2016 1 Headline Diluted Earnings and H
Slide 41: GroupM - This Year Next Year
2 GroupM - This Year Next Year 41
Slide 42: GroupM 2016 Forecast for Global AdSpend
Market Environment GroupM 2016 Forecast for Global AdSpend 4.3% …up from July 2016 forecast 4.0% Source: GroupM This Year Next Year Worldwide Report, December 2016 42
Slide 43: GroupM 2017 Forecast for Global AdSpend
Market Environment GroupM 2017 Forecast for Global AdSpend 4.4% Source: GroupM This Year Next Year Worldwide Report, December 2016 43
Slide 44: GDP and Advertising Year-on-Year Nominal % Change
Market Environment GDP and Advertising Year-on-Year Nominal % Change 10.0 8.0 6.0 4.0 2.0 0.0 2007 2009 2011 2013 2015 2017 2019 2021 -2.0 GDP Advertising -4.0 -6.0 -8.0 Source: IMF/GroupM 44
Slide 45: Advertising Peak Recovered
Market Environment Advertising Peak Recovered Real ad investment (2007 = 100) 200 New 150 World 100 Old 50 2007 2009 2011 2013 2015 2017 Source: GroupM This Year Next Year Worldwide Report, December 2016 45
Slide 46: UK the European Outlier
Market Environment UK the European Outlier Real ad investment (2007 = 100) 120 UK 100 80 EU ex UK 60 2007 2009 2011 2013 2015 2017 Source: GroupM This Year Next Year Worldwide Report, December 2016 46
Slide 47: Contributions to 2017
Market Environment Contributions to 2017 $ bn 8 G2 World 7 +$6.2bn 6 +$4.7bn 5 4 3 +$1.4bn +$1.6bn 2 1 0 Australia Russia India Japan Argentina UK USA China ‐1 Source: GroupM This Year Next Year Worldwide Report, December 2016 47
Slide 48: Less Dependent on New World
Market Environment Less Dependent on “New World” % contribution 80 Old 60 New 40 20 0 2010‐2015 2016‐2017 Source: GroupM This Year Next Year Worldwide Report, December 2016 48
Slide 49: More Dependent on Digital
Market Environment More Dependent on Digital % contribution 100 90 80 Traditional 70 Digital 60 50 40 30 20 10 0 2010‐2015 2016‐2017 Source: GroupM This Year Next Year Worldwide Report, December 2016 49
Slide 50: 2016/2017 Forecast Ad Spend Growth by Region
Market Environment 2016/2017 Forecast Ad Spend Growth by Region Growth % YoY 2016 2016 2017 prev North America 3.0 3.1 2.6 Lat Am 4.6 4.9 6.5 W Europe 3.4 3.7 3.0 CEE 6.9 8.1 8.5 Asia‐Pacific 5.3 5.8 6.3 WORLD 4.0 4.3 4.4 Source: GroupM This Year Next Year Worldwide Report, December 2016 50
Slide 51: Four Core Strategic Priorities
3 Four Core Strategic Priorities 51
Slide 52: Macro and Micro Trends
Market Environment Macro and Micro Trends Macro Micro Global GDP growth projections for 2017 slightly ahead of 2016. Low growth, low inflation, no pricing power, renewed focus on costs. Uncertainty about timing and implementation of incoming US Disrupters, zero based budgeters, activist inve
Slide 53: Like-for-Like Growth and GDP
Market Environment Like-for-Like Growth and GDP 11.0 WPP Like-for-Like Revenue Growth 10.0 WPP Like-for-Like Net Sales Growth 9.0 GDP Nominal / WPP 8.0 GDP Nominal / Goldman Sachs 7.0 GDP growth % 2016 Actual/ 2017 Forecast 6.0 Nominal/WPP Growth (%) Nominal/Goldman Sachs Real IMF¹ 5.0 4.0 3.0 2.0 1
Slide 54: Leading Clients Published Results Trends
Market Environment Leading Clients Published Results Trends Fourth quarter like-for-like revenue growth ca. 2.2%. Pricing led ca. 2.1% as volumes are weak. US growth ahead of International. Increasing focus on cost saving programs. 54
Slide 55: Four Strategic Priorities
Four Strategic Priorities Horizontality, New Markets, New Media and Data Investment Management Horizontality – ensuring our people work together through client teams and country and sub-regional managers for benefit of clients. Faster growing markets to be 40-45% of total Group revenue over next
Slide 56: Horizontality
CANNES LIONS 2011-2016 D HOLDING COMPANY OF THE YEAR Horizontality en | MOST EFFECTIVE HOLDING COMPANY Our *) strategic priorities Advance horizontality by ensuring our people work together for the benefit of clients Cross-Group client teams WPP 56
Slide 57: Horizontality
Horizontality 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, internal communications and media and entertainment) to client
Slide 58: New Markets
New Markets Our uy strategic priorities Increase share of revenues from faster-developing markets to 40-45% Are we on target? 28% 30% 42.5% 2010 2016 2020 CANNES LIONS 2011-2016 D HOLDING COMPANY OF THE YEAR EFFIE AWARDS 2012-2016 £ MOST EFFECTIVE HOLDING COMPANY Gogo W PP 58
Slide 59: New Media
HOLDING COMPANY OF THE YEAR « i, ‘CANNES LIONS 2011-2016 New Media Our mil strategic priorities / Increase share of revenues from new media to 40-45% Are we on target? 29% 38.9% 2010 2016 W PP 59
Slide 60: Media Time Spent vs. Ad Spend Not Aligned
New Media Media Time Spent vs. Ad Spend Not Aligned % of Time Spent in Media vs. % of Advertising Spending, USA, 2015 45% Time Spent 2015 % of Total Media Consumption Time of Ad Spend 2015 40% 42% Ad Spend 2011 39% Total Of Which Internet Ad Mobile Ad 35% 36% = $60B = $21B 30% Advertising Spending 2
Slide 61: Advertising Spend is Increasingly Moving to Digital
New Media Advertising Spend is Increasingly Moving to Digital Digital as a % of Total Ad Spend 67% Proliferation of consumer 59% media channels and devices 47% Mobile as the primary screen 42% for content consumption 39% 36% 34% 32% Digitalisation of the traditional 28% 27% 28% 25% linear chan
Slide 62: Xaxis: Pioneering Outcome Based Media
Results for 2016 Xaxis: Pioneering Outcome Based Media GLOBAL SCALE ANNUAL SALES CLIENTS GROWTH 1,900+ EMPLOYEES $1.1 BILLION 3,300+ ACCOUNTS +15% YOY SERVING 62 MARKETS APPLYING PROPRIATERY DATA UNPARALLELED ACCESS TO INTERNATIONAL EXPANSION OF AND MACHINE LEARNING TECH PREMIUM MEDIA AT SCALE LIGHT
Slide 63: Xaxis: Increased Emphasis on e-Commerce with Triad Retail Media
Results for 2016 Xaxis: Increased Emphasis on e-Commerce with Acquisition of Triad Retail Media ECO OUR MISSION SELECTED RETAIL PARTNERS 63
Slide 64: Data Investment Management and Quantitative Disciplines
Data Investment Management and Quantitative Disciplines 64
Slide 65: Digital and Faster Growing Markets Two Key Long-Term Growth Drivers
Digital and Faster Growing Markets Two Key Long-Term Growth Drivers Overall 59% of 2016 FY Actual Revenue Faster growing markets Digital 30% 39% of revenue of revenue Digital in faster growing markets 10% of revenue 65
Slide 66: Key Objectives
4 Key Objectives CANNES LIONS 2011-2016 D HOLDING COMPANY OF THE YEAR gE / EFFIE AWARDS 2012-2016 MOST EFFECTIVE HOLDING COMPANY W PP 66
Slide 67: We Continue to Focus on Our Key Objectives
Key Objectives We Continue to Focus on Our Key Objectives Improving operating margins. Increasing flexibility in the cost base. Using free cash flow to enhance share owner value and improve return on capital employed. Developing the role of parent company. Emphasising revenue and net sales
Slide 68: Improving Operating Margins
Key Objectives Improving Operating Margins PBIT1 PBIT1 margin £’m % 2,400 Long term target 19.7% 20% Long-term PBIT margin targets include 1.0% 2,200 2,160 margin improvement from 19% operational efficiency programmes 2,000 18% 1,774 1,800 1,662 1,681 17.4% 17% 1,600 1,531 1,429 16.9% 16.7% 16.5% 16
Slide 69: Improving Operating Margins
Key Objectives Improving Operating Margins Operational Effectiveness Programmes Shared Service Centres to generate scale and improve process efficiency. Off-shoring of certain tasks from high cost markets with outsourcing where appropriate to take advantage of scale and skills of major providers
Slide 70: Using Free Cash Flow to Enhance Dividend Pay-Out Ratio
Key Objectives Using Free Cash Flow to Enhance Dividend Pay-Out Ratio 120p 50% Target pay-out ratio 50% 45% 100p 40% 35% 80p 30% 60p 25% 20% 40p 15% 10% 20p 5% 0p 0% 2009 2010 2011 2012 2013 2014 2015 2016 Headline Diluted EPS 44.4p 56.7p 67.7p 73.4p 80.8p 84.9p 93.6p 113.2p Dividend Declared/Share
Slide 71: Using Free Cash Flow to Enhance Share Owner Value
Key Objectives Using Free Cash Flow to Enhance Share Owner Value £’m Distributions to Share Owners¹ Distributions as % of shares issued¹ 1,200 7% 6% 1,000 48%² 5% 800 47%² 59%² 4% 600 3% 400 67%² 2% 55%² 70%² 200 1% 81%² 95%² 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 Dividends paid 190 201 218 30
Slide 72: Distributions to Share Owners Since 2004
Key Objectives Using Free Cash Flow to Enhance Share Owner Value £’m Distributions to Share Owners Since 2004 12,000 Cumulative from 1 January 2004: Over the last ten Buy-backs 10,548 years we have returned £5.9bn to Dividends paid 10,000 share owners 9,081 Headline Earnings % of Headline Earnings 7
Slide 73: Using Free Cash Flow for Acquisitions
Key Objectives Using Free Cash Flow for Acquisitions Significant pipeline of reasonably priced small and medium-sized potential acquisitions. Continue to focus on faster growing geographical and functional services, particularly direct, digital & interactive and data investment management. Acc
Slide 74: Acquisitions and Investments
Key Objectives Acquisitions and Investments Faster Growing Quantitative & All Def Digital (USA)² Markets AppNexus (USA)¹,² Digital ArcTouch (USA) CIVIS (USA)² 3yz (Brazil) comScore (USA)¹,² PEP (USA) Effect PR (Turkey) Analytics Quotient (India) CODE (UK) Potato (UK) ENGAGE (KENYA)³ Bienalto (Austra
Slide 75: Return on Equity and WACC
Key Objectives Return on Equity and WACC¹ % 18 16.3 16.2 16 15.0 14.4 14 13.6 12.9 12 11.1 10 8 6 4 2 0 2010 2011 2012 2013 2014 2015 2016 Return on Equity WACC ¹ Return on equity is headline diluted EPS divided by equity shareowners funds per share; WACC Is weighted average cost of capital 75
Slide 76: Improving the Creative Reputation of all our Businesses
Key Objectives Improving the Creative Reputation of all our Businesses Network 1 Ogilvy & Mather Ogilvy & Mather 2 BBDO Cannes Network of the Year 2012-2016 3 Y&R 4 out of the top 7 Cannes 4 McCann networks of the year 5 DDB 2 out of the top 3 Cannes agencies of the year 6 Grey Ogilvy & Mather 7 J.
Slide 77: Outlook and Conclusions
5 Outlook and Conclusions W PP
Slide 78: Conclusions 2016
Conclusions 2016 Another Record Year With Strong Currency Tailwinds, Particularly in Second Half Strong reported revenue and net sales growth almost 18%, like-for-like net sales growth 3.1%, reported margin improvement of 0.5 margin points and 0.3 points like-for-like. Reported headline diluted EP
Slide 79: Outlook for 2017: Our Long-Term Financial Model
Outlook for 2017 Our Long-Term Financial Model Organic revenue and net sales growth of 0-5% in line with market growth. Margin improvement of 0.3 margin points or more before currency movements, with long-term net sales margin target of 19.7%. Use of our substantial cash flow to enhance EPS th
Slide 80: Outlook for 2017
Outlook for 2017 Our budgets indicate − Like-for-like revenue and net sales growth set cautiously as usual (hopefully) ca. 2%, with a stronger second half. − Margin improvement in line with target 0.3 margin points excluding currency, off a constant currency base margin of 17.3%. − Acquisitions to
Slide 81: 31 Year History (Hard Copy Only)
6 31 Year History (Hard Copy Only) 81
Slide 82: 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 1,918 2,000 1,5551,6911,747 1,2641,2041
Slide 83: 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 84: 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 5.2 5.5 5.4 5.0 5.3 5.3 5.3 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 85: 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 86: 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 87: Other Financial Information (Hard Copy only)
7 Other Financial Information (Hard Copy only) 87
Slide 88: Competitor Review
Results for 2016 Competitor Review1 35 14 Market Cap 2016 Revenue 2016 EBITDA Market Cap/ EBITDA EV/EBITDA 30 12 25 10 EBITDA Valuation Ratios Market Capitalisation $bn 20 8 15 6 10 4 5 2 0 - WPP OMC Nielsen Dentsu PUB IPG Havas Ipsos GfK 1 Market Capitalisation/Enterprise Value as of 24 February 20
Slide 89: Our Billion $ Revenue Brands
Results for 2016 Our Billion $ Revenue Brands 89
Slide 90: Net Finance Costs
Results for 2016 Net Finance Costs £m 2016 2015 B/(W) Interest on net debt 177 161 (16) Investment income (12) (19) (7) IAS 19 (Pensions) 9 10 1 Sub-total (3) (9) (6) Headline finance costs 174 152 (22) IAS 39 (Financial Instruments) 48 34 (14) Net finance costs 222 186 (36) 90
Slide 91: Pensions Deficit
Results for 2016 Pensions Deficit £m 2016 2015 Deficit B/F (229) (296) Service cost (22) (23) Plan liabilities interest charge (37) (35) Funding 44 71 Investment returns 97 (4) Change in valuation assumptions¹ (85) 68 Other movements 1 (9) Movements in the year excluding FX (2) 68 Foreign exchange i
Slide 92: Earnout Accrual
Results for 2016 Earnout Accrual 2016 Rollforward £m Expected Payments £m 31 December 2015 581 2017 278 Earnouts paid (92) 2018 220 New acquisitions 360 2019 170 Revised estimates taken to goodwill 28 2020 177 Revaluations of payments 12 2021 122 Excluding FX 889 2022+ 10 Foreign exchange impact 88
Slide 93: Ordinary Shares - Basic
Results for 2016 Ordinary Shares - Basic December December 2016 2015 No. of Shares (million) Actual Actual 1 January 1,329 1,326 Option exercise 3 3 31 December 1,332 1,329 -0.2% Weighted Average 1,330 1,327 ESOP, Treasury & Other (52) (38) Average Basic 1,278 1,289 0.9% 93
Slide 94: Ordinary Shares – Diluted
Results for 2016 Ordinary Shares – Diluted December December 2016 2015 No. of Shares (million) Actual Actual Average Basic 1,278 1,289 Share Option Dilution 2 3 Other Potentially Issuable Shares 16 21 Diluted Shares 1,296 1,313 1.3% 94
Slide 95: Revenue by Industry
Results for 2016 Revenue by Industry Other Auto 10% 13% T&E 6% Consumer Products 5% Telcom 6% Personal Care 11% Technology 6% Retail 5% Government 2% Oil Healthcare 2% 11% Financial Services 8% Food & Drink 15% Chart represents the amount of revenue attributed to each industry expressed as a percent
Slide 96: The New Normal
Results for 2016 The New Normal Low GDP Low or No Growth Inflation Little Pricing High Focus Power on Costs 96
Slide 97: The Legacy Spectrum
Results for 2016 The Legacy Spectrum Active Zero Based Disrupters Investors Budgeters Bill Ackman Daniel Loeb Nelson Peltz 97
Slide 98: Short Executive Life Expectancy
Results for 2016 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) 98
Slide 99: S&P 500 Dividends & Buy-Backs as % of Operating Earnings
Results for 2016 S&P 500 Dividends & Buy-Backs as % of Operating Earnings 140% 131% 122% 120% 114% 110% 100% of operating earnings 99% 104% 98% 100% 95% 95% 89% 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% Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10
Slide 100: Rising FTSE Dividend Pay-Out Ratios
Results for 2016 Rising FTSE Dividend Pay-Out Ratios 110% 75% FTSE 100 EPS FTSE 100 pay‐out ratio WPP pay‐out ratio 70% 100% 65% 90% 60% 80% 55% EPS Pay‐out 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 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Slide 101: US Total Investment as % of GDP
Results for 2016 US Total Investment as % of GDP 101
Slide 102: Strong Brands Generate Superior Shareholders’ Return
Results for 2016 Strong Brands Generate Superior Shareholders’ Return 102
Slide 103: Over 205,000 people in over 3,000 offices covering 113 countries
Results for 2016 Over 205,000 people1 in over 3,000 offices covering 113² countries with access to over $26bn1 of annual revenue ¹ Including associates and investments ² Including Cuba and Iran, although in the latter case only through affiliations, because of effectively continuing sanctions 103
Slide 104: Horizontality Matrix
Results for 2016 Horizontality Matrix Specialist Communications J. Walter Ogilvy Y&R Grey GroupM Kantar H+K BtoD WPP WPP WPP Thompson Group Strategies Group Health & Digital Spec Wellness Comms Client Leaders Country/Regional Managers 104
Slide 105: 48 Account Teams
Results for 2016 48 Account Teams – over one third of revenue with over 38,000 WPP employees working on these clients 105
Slide 106: 2016 Revenue by Geography
Results for 2016 2016 Revenue by Geography $19.4bn 5.8 Asia Pacific, Latin America, Africa & Middle East, CEE $15.4bn Western Europe 2.8 N America 3.4 $10.8bn 6.5 2.3 $7.8bn $7.2bn 2.7 1.7 1.4 9.2 4.8 7.1 5.8 $2.5bn 4.7 0.4 1.2 1.2 1.2 0.9 Source: WPP Omnicom Publicis IPG Dentsu Havas 1 WPP – report
Slide 107: Revenue in Faster Growing Markets 2004-2016
Results for 2016 Revenue¹ in Faster Growing³ Markets 2004-2016 6.0 5.5 5.0 4.5 4.0 3.5 Revenue ($'bn) 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 4 2016 4 WPP OMC² PUB² IPG² HAV² ¹ WPP reportable US$ revenue per WPP results and peer $ revenue as shown in a
Slide 108: WPP’s Performance Remains Strong in BRICs Markets
Results for 2016 WPP’s Performance Remains Strong in BRICs Markets Revenue $'m 1,800 1,600 16 year CAGR 14% 1,400 1,200 1,000 800 16 year CAGR 15% 600 16 year CAGR 11% 400 200 16 year CAGR 38% 0 2000 2015 2016 2000 2015 2016 2000 2015 2016 2000 2015 2016 Greater China¹ Brazil India Russia 1 Includes
Slide 109: WPP in Faster Growing Markets
Results for 2016 WPP in Faster Growing Markets Region Market Billings1 % Share1 Rank1 12 month2 People2 $bn Revenue $bn ‘000 Asia Pacific: Greater China3 11.3 35% 1 1.5 14 India 4.6 51% 1 0.6 15 Thailand 0.9 34% 1 0.1 2 4 LatAm: Brazil n/a n/a 1 0.4 7 Mexico 1.1 28% 2 0.2 2 Argentina 0.8 25% 2 0.5 7
Slide 110: Media Billings by Geography
Results for 2016 Media Billings by Geography Worldwide Ranking by Group as % of the Six Groups % WPP Omnicom Publicis Dentsu IPG Havas 40 35 30 25 20 15 10 5 0 Worldwide Americas Europe Asia Pacific Source: RECMA July 2016 billings report, based on 2015 data 111
Slide 111: WPP Clear No. 1 in Brazil
Results for 2016 WPP Clear No. 1 in Brazil¹ RECMA does not cover Brazil, IBOPE measures media spend with “IBOPE Rate Card Monitor”. Agency R$’bn Rank Group R$’bn Rank Y&R 6.0 1 WPP 11.6 1 W/McCann 3.7 2 OMC 9.1 2 Almap/BBDO 3.7 3 PUB 8.4 3 Ogilvy 3.4 4 IPG 3.7 4 Publicis 3.2 5 HAV 2.7 5 Africa 3.1
Slide 112: 2016 Revenue by Sector
Results for 2016 2016 Revenue by Sector $19.4bn Data Investment Management 3.6 Marketing Services Advertising $15.4bn Media 7.0 7.34 $10.8bn 5.6 $7.8bn $7.2bn 3.4 0.4 3.3 6.0 2.5 6.8 5.4 2.9 $2.5bn 0.8 2.1 2.7 0.8 1.6 0.9 WPP Omnicom Publicis IPG Dentsu Havas Source: 1 WPP reportable US $’s per WPP
Slide 113: WPP Investments in Technology, Data and Content
Results for 2016 WPP Investments in Technology, Data and Content New areas key to supporting clients and managing measurement, viewability, verification, value and performance. Technology Data Content AppNexus comScore ($276m¹ vs $393m²) Vice ($329m¹ v $34m²) Globant ($238m¹ vs $80m²) Invidi Imagi
Slide 114: Digital in All Our Businesses
Results for 2016 Digital in All Our Businesses Digital Revenue ($billion – 2016 Full Year) 7.5 5.8 4.7 2.7 2.7 0.7 WPP Publicis Omnicom¹ Dentsu IPG¹ Havas¹ 1Omnicom, IPG and Havas digital revenue based on Exane BNP Paribas estimates. 115
Slide 115: Revenue Share Continues to Increase
Results for 2016 Revenue Share Continues to Increase WPP Share of Digital Revenue 40-45% 39% 37%+ 35% 36% 33%¹ 30% 21% 12% 2000 2006 2011 2012 2013 2014 2015 2016 Target in 5 Years 1 Including AKQA Pro-Forma 116
Slide 116: WPP Position in Direct, Digital and Interactive
Results for 2016 WPP Position in Direct, Digital and Interactive Full Year 2016 Revenue $’m Direct, Digital and Interactive Networks 3,441 (OgilvyOne, Wunderman, Geometry, VML, WPP Digital, Mirum & AKQA) % of Group revenue 18% Specialist Direct, Digital and Interactive resources: - Data Investment M
Slide 117: Using Free Cash Flow to Enhance Share Owner Value
Results for 2016 Using Free Cash Flow to Enhance Share Owner Value Dividends and Share Buy-Backs 2016 final dividend increased by 28.7% to 37.05p per share (2015 – 28.78p) to give full year dividend of 56.60p per share (2015 – 44.69p), up 26.7%. Distributions to share owners: Share Buy-Backs Div
Slide 118: Maintaining Flexibility in The Cost Base
Results for 2016 Maintaining Flexibility in The Cost Base - Change in Variable Costs1 8.2 8.3 8.0 8.0 7.8 7.3 2011 2012 2013 2014 2015 2016 Variable Staff Costs as % of Net Sales ¹ Freelance, consultants and incentive costs 119
Slide 119: Effects of Currency
Results for 2016 Effects of Currency 2016 2015 Sterling (Weaker)/ Stronger US$ 1.35 1.53 -12% Net sales were increased by € 1.22 1.38 -12% £1,042m and headline PBIT¹ by £225m as a result of weakness of ¥ 147 185 -21% £ sterling versus prior year. Chinese Renminbi 9.0 9.6 -6% Brazilian Real 4.74 5.10
Slide 120: 24 month US$ range
Results for 2016 24 month US$ range 1.56 to 1.23 USD Monthly Average Quarterly % Variance vs PY 1.60 £ Strength 0% Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 1.55 ‐2% ‐4.1% ‐5.5% ‐6.4% ‐7.2% 1.50 ‐4% ‐8.5% ‐8.9% ‐6% 1.45 ‐8% ‐15.3% 1.40 ‐18.1% ‐10% 2017 1.35 2016 ‐12% 2015 ‐14% 1.30 ‐16% 1.25 ‐18% 1.20 ‐20%
Slide 121: 24 month € range
Results for 2016 24 month € range 1.41 to 1.12 EUR Monthly Average Quarterly % Variance vs PY 1.45 £ Strength 15% 1.40 10% 1.35 12.9% 11.4% 10.6% 5% 9.4% 2017 1.30 2016 0% 2015 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 ‐3.5% 1.25 ‐8.3% ‐5% ‐15.6% 1.20 ‐16.9% ‐10% 1.15 ‐15% 1.10 ‐20% Jan Feb Mar Apr May Jun
Slide 122: Faster Growing Regions - Quarterly % Variance vs PY
Results for 2016 Faster Growing Regions - Quarterly % Variance vs PY Asia Pacific Latin America £ Strength £ Strength 5% 25% 2.9% 1.7% 20% 0% Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 -4.4% -3.7% -0.1% -5% -3.2% 15% -18.5% 21.9% -10% -20.5% 10% 19.3% 18.1% 13.6% -15% 5% 10.7% 5.3% -20% 0% Q1 2015 Q2 Q3 Q4 Q
Slide 123: Two Year Cumulative Like-for-Like Growth
Results for 2016 WPP Two Year Cumulative Like-for-Like Growth1 - Consistent Performance % Revenue Net Sales 1 Year 2 Year 1 Year 2 Year Q1 2015 5.2 12.2² 2.5 6.3² Q2 2015 4.5 14.7² 2.1 6.5² Q3 2015 4.6 12.2² 3.3 6.3² Q4 2015 6.7 14.5² 4.9 7.0² Q1 2016 5.1 10.3² 3.2 5.7² Q2 2016 3.5 8.0² 4.3 6.4² Q3
Slide 124: Two Year Cumulative Like-for-Like Revenue Growth
Results for 2016 Two Year Cumulative Like-for-Like Revenue Growth1 % WPP² OMC³ Pub4 IPG5 HAV6 Q1 2015 12.2 9.4 4.2 12.3 10.1 Q2 2015 14.7 11.1 1.9 11.4 13.4 Q3 2015 12.2 12.6 1.7 13.4 11.5 Q4 2015 14.5 10.7 6.0 10.0 6.6 Q1 2016 10.3 8.9 3.8 12.4 10.5 Q2 2016 8.0 8.7 4.1 10.4 8.2 Q3 2016 7.8 9.3 0.9
Slide 125: Acquisitions since 1 October 2016
Results for 2016 Acquisitions since 1 October 2016 Code – UK (MediaCom) Code is a user experience studio that creates and develops digital products, campaigns and capabilities. Code’s services include platform build, design and conversion optimisation. The agency was established in 1999, and employs
Slide 126: Acquisitions since 1 October 2016
Results for 2016 Acquisitions since 1 October 2016 MediaCom India¹,² – India (GroupM) MediaCom India was founded in 2007. It employs around 170 people in India, with offices in Gurgaon, Bangalore and Mumbai as well as a representative office in Chennai. As a Content + Connection agency, MediaCom Ind
Slide 127: Acquisitions since 1 October 2016
Results for 2016 Acquisitions since 1 October 2016 Promotion Execution Partners – USA (Geometry Global) Promotion Execution Partners, LLC (“PEP”) is a project management and procurement company that oversees shopper marketing promotions for clients, in the US. Since its founding in 2004, PEP has man
Slide 128: Acquisitions since 1 October 2016
Results for 2016 Acquisitions since 1 October 2016 Shanghai Ogilvy & Mather Marketing Communications Consulting¹,² – China (Ogilvy) Shanghai Ogilvy & Mather Marketing Communications Consulting was founded in 1997 and is a leading agency in communications and public affairs consulting. The agency emp
Slide 129: Acquisitions since 1 October 2016
Results for 2016 Acquisitions since 1 October 2016 Tank – Canada (Grey) Tank is a leading full-service healthcare and consumer agency in Canada. Clients include AbbVie, BMS, Caisse de depot, Department of Canadian Heritage, Eli Lilly, Lundbeck and Telus Health. The company employs 120 people and is
Slide 130: Structure and Competitive Position (Hard Copy Only)
8 Structure and Competitive Position (Hard Copy Only) 131
Slide 131: WPP Today
WPP Today WPP is the world’s largest communication services group with over 198,000 people (including associates) in over 3,000 offices covering 113 countries worldwide. 360 of the Fortune Global 500, all 30 of the Dow Jones 30 and 78 of the NASDAQ 100. 596 clients in all four disciplines and 46
Slide 132: WPP Has Many of the Best Known Brands in the Industry
WPP Today WPP Has Many of the Best Known Brands in the Industry Ranked 1 or 2 in all sectors in which it competes J. Walter Thompson Worldwide Kantar Millward Brown Ogilvy CommonHealth (O) Data Ogilvy & Mather (O) Investment Kantar TNS Sudler & Hennessey (Y) Advertising Management BrandAsset Valuato
Slide 133: Seven Reporting Relationships Cover 86% of Revenue
WPP Today Seven Reporting Relationships Cover 86% of Revenue J. Walter Thompson Company GroupM Chairman: Irwin Gotlieb CEO: Tamara Ingram CEO: Kelly Clark Mirum Mindshare MEC Ogilvy & Mather MediaCom Chairman & CEO: John Seifert Ogilvy Public Relations Maxus OgilvyOne [m]Platform Essence CEO: Peter
Slide 134: Eight Further Reporting Relationships
WPP Today Eight Further Reporting Relationships Cover Most of Remaining 14% of Revenue CEO: Frank-Michael Schmidt Commarco Specialist Communications Joint COOs: MaryEllen Howe, CEO: Jack Martin Hill+Knowlton Strategies Specialist Public Relations Laurence Mellman BtoD Group WPP Digital CEO: Mark Rea
Slide 135: WPP Today
WPP Today Revenue £14.4bn WPP PBIT £2.160bn Branding & Identity, Media Data Public Relations Healthcare and Advertising Investment Investment & WPP Digital Management Specialist Management Public Affairs Communications Revenue £6.5bn Revenue £2.7bn Revenue £1.1bn Revenue £4.1bn Revenue Broader £5.6b
Slide 136: WPP Today: Advertising
WPP Today Advertising J. Walter Thompson Ogilvy & Y&R Grey Worldwide Mather Advertising (Global) (Global) (Global) (Global) CEO: Tamara Ingram Chairman & CEO: CEO: David Sable Chairman & CEO: John Seifert President: David Patton Jim Heekin President: Michael Houston DY&R Asatsu - DK Chime Joint Vent
Slide 137: WPP Today: Media Investment Management
WPP Today Media Investment Chairman: Irwin Gotlieb Management: CEO: Kelly Clark GroupM Mindshare MEC MediaCom Maxus [m]Platform Essence tenthavenue CEO: CEO: CEO: CEO: CEO: CEO: Christian Juhl CEO: Rupert Day Nick Emery Tim Castree Stephen Allan Lindsay Pattison Brian Gleason Xaxis Chairman: David M
Slide 138: Media Investment Management - Competitive Worldwide Ranking
WPP Today Media Investment Management - Competitive Worldwide Ranking Americas EMEA Asia Pacific Worldwide Mindshare 6 5 1 2 MEC 8 4 7 7 MediaCom 10 1 3 3 Maxus 13 10 10 13 GroupM 2 1 1 1 Source: RECMA July 2016 Billings Rankings report, based on 2015 data. 139
Slide 139: WPP Today: Data Investment Management
WPP Today Data Investment Management: Chairman & CEO: Eric Salama 140
Slide 140: Data Investment Management – Worldwide Competitive Ranking
WPP Today Data Investment Management – Worldwide Competitive Ranking 1. The Nielsen Company 2. Kantar 3. IMS Health 4. Ipsos 5. GfK 6. Gartner Inc. 7. IRI 8. Dunnhumby 9. Westat Inc. 10. Intage Inc. Source: ESOMAR 2016 report. Top 25 Global research organisations ranking based on 2015 consolidated r
Slide 141: WPP Today: Public Relations & Public Affairs
WPP Today Public Relations & Public Affairs Hill+Knowlton Ogilvy Public Burson- Specialist Cohn & Strategies Relations Marsteller Public Relations Wolfe Chairman & CEO: CEO: Stuart Smith Founding Chairman: CEO: Donna Imperato Jack Martin Harold Burson Chairman & CEO: Don Baer Group SJR PSB Finsbury
Slide 142: WPP Today: Branding & Identity
WPP Today Branding & Identity: BtoD Group Landor Group XP The Partnership CEO: Lois Jacobs CEO: Simon Bolton CEO: Jim Prior The Partners Addison Lambie-Nairn VBAT Brand Union FITCH SET Creative Peclers CEO: Toby Southgate Chairman: Tim Greenhalgh CEO: Sabina Teshler CEO: Simon Bolton 143
Slide 143: WPP Today: Healthcare
WPP Today Healthcare Wunderman Kantar WPP Health & Wellness Health Health CEO: Mike Hudnall President: CEO: Becky Chidester Lynnette Cook Americas International Healthcare Teams CEO:Claire Gillis Ogilvy greyhealth group Sudler & Hennessey CMI/Compas¹ Europe Asia Pacific CommonHealth Managing Partner
Slide 144: WPP Today: Direct, Digital and Interactive
WPP Today Direct, Digital and Interactive Mirum OgilvyOne¹ Wunderman VML Geometry Global WPP Digital AKQA Chairman: Chairman & CEO: Chairman Emeritus: President & CEO: Chairman: CEO: Mark Read CEO: Ajaz Ahmed Stefano Zunino Brian Lester Wunderman Jon Cook Toby Hoare COO: Mark Povey CEO: Dan Khabie F
Slide 145: WPP Today: WPP Digital
WPP Today WPP Digital CEO: Mark Read COO: Mark Povey Blue State POSSIBLE Hogarth Rockfish F.biz Cognifide Salmon Syzygy Digital CEO: Co CEOs: CEO: CEO: Co CEOs: CEO: CEO: CEO: Shane Atchison Richard Glasson Kenny Tomlin Joe Rospars Pedro Reiss Miro Walker Neil Stewart Lars Lehne Kevan Thorn Roberto
Slide 146: WPP Today: Sports Marketing
WPP Today Sports Marketing CEO: Dominic Grainger ESP Bruin Sports Capital² Courtside Ventures² Imagina¹ CEO: John Kristick Two Circles Chairman: Matt Rogan CEO:Gareth Balch ¹ Associate company ² Investment 147
Slide 147: WPP Today: Specialist Communications
WPP Today Specialist Communications COO N. America: MaryEllen Howe COO International: Laurence Mellman Relationship Media, Technology Sports Demographic Industry Sector Field Marketing and & Production Marketing Marketing Marketing Marketing Promotion Services Bruin Sports Capital² Barrows¹ The Food
Slide 148: London
W PP Results for 2016 London