Wpp Plc · LSE:WPP

Wpp — Shareholder Meeting (2016)

28 slides from Wpp's shareholder meeting presentation, 2016

  1. Slide 1: Sir Martin Sorrell, CEO

  2. Slide 2: Our Financial Performance / Long-term Brand Building

  3. Slide 3: 1,6911,7471918 1,2641,2041,27314311,427

    5 1,6911,7471918 1,2641,2041,27314311,427 155

  4. Slide 4: Year History: net sales

    - 30 Year History PP net sales 843 1,0761,0161,0701,2091,2! 3,790 6999.69.07 2,736 1,855 04},3261,4971,4691633

  5. Slide 5: Year History: PBIT margin

    30 Year History 2004 onwards PBIT reported under IFRS 2 6 NAN & G9 O od &d PoP SM oP A SP DY DO 2S ow A &F GD ONS DY DD O° Gd od QD od 2 S 2’ & gy” gy oy oY oY PP HHH LF HH HH LL SF FS FFI EFF EFI EFSF SS br Revenue Margin - Full Year Pro-forma for TNS acquisition Net Sales Margin - Full Year Net Sa

  6. Slide 6: History: headline diluted EPS

    - History -WPP headline diluted EPS post 1992 rights issue pence 100 5 = 208 80 4 z 22 Year CAGR: 14% ors oer | 55.5 56.7 50 + ase 45.8 44.4 40 5 36.0 30.3 30.9 | 22.7 205 135 157 ae = 94 10/59 65 | | | i ool Ci a P a ° Cm Ss - es | s SY MS © © Se ££ SS ese Fs FF FFT KK XK — 93.6 = UK GAAP mIFRS

  7. Slide 7: Investor Returns 1985-2016

    Investor Returns 1985 2016 z 1,000 invested in WPP £63,647 E £1,000 invested in FTSE = $4,215 = $1,000 invested in WPP = $95,358 $1,000 invested in S&P 500 = $10,289

  8. Slide 8: Investor Returns 1995-2016

    Investor Returns 1995 2016 £1,000 invested in WPP £20,691 £9,841 = £1,000 invested in peer group see Peer group - Omnicom, Publicis, IPG, Havas

  9. Slide 9: The New Normal

    The New Normal Low GDP : Growth Little Pricing Power Low or No Inflation High Focus on © Costs

  10. Slide 10: The Legacy Spectrum

    __ The Legacy Spectrum Gai Active _ Investors ‘Bill Ackman Daniel Loeb _ Nelson Peltz Zero Based Budgeters 3G Capital a ” Reckitt Benckiser Was EANT endo

  11. Slide 11: Short Executive 'life expectancy'

    Short Executive ‘life expectancy’ _- CEO tenure 6 to 7 years —— (FTSE 100 5.9 years, S&P 500 7.1 years) = 6CFO tenure 4 to 5 years a (FTSE 100 4.1 years, S&P 500 4.8 with 50% less than 3 years) - 6CMO tenure 3 to 4 years (S&P 45 months)

  12. Slide 12: S&P Dividends & Buy-Backs as % of Operating Earnings

    First Quarter 2016 S&P 500 Dividends & Buy-Backs as % of Operating Earnings 140% 140% 122% 122% 120% 120% 110% 110% 104% 104% 100% of operating earnings 99% 99% 98% 98% 95% 95% 100% 100% 89% 89% 87% 87% 87% 87% 85% 85% 83% 83% 81% 81% 77% 77% 78% 78% 78% 78% 80% 80% 74% 74% 74% 74% 71% 71% 71% 71% 7

  13. Slide 13: US Total Investment as % of GDP

    US Total Investment as % of GDP | Ses 20, 19 S18 Seay, 1980 1985 1990 1995 2000 2005 2010 2015

  14. Slide 14: Investment in strong brands generates superior shareholder returns

    Investment in strong brands generates superior shareholder returns BrandZ™ Strong Brands Portfolio vs. S&P 500 vs MSCI World Index (Apr 2006 - Apr 2015) Brandz™ y N @ 87500 102.6% 63% eS e@ MSCI yy’ WN . w “wv 2006 2007 2008 2010 2011 2012 2013 2014 2015

  15. Slide 15: The Global Communications Services Leader

  16. Slide 16: WPP: a global company

    -WPP: a 1 global company : Germany Greater China ce Japan fete Turkey z tt == ontevenent = Pakistan At} korea tit : senenenent $30m 14,000 4.000 — . thititt @ Bangladesh Mexico seppesntententettttt T7009, tt $lom atitt aiett 1,600 ° i) = mt vk, Vitnemle “ Indicat 500 Tt Nigeria (on) Philippines a Co

  17. Slide 17: Our Billion Dollar Brands

    Our 9 Billion Dollar Brands

  18. Slide 18: Our Billion Dollar Markets

    Our 5 Billion Dollar Markets

  19. Slide 19: Our 4 strategic priorities

  20. Slide 20: Horizontality

    es orizontality Over 194,000 people in over 3,000 offices in 112 countries

  21. Slide 21: Horizontality Matrix

    _ ~ Horizontality - Horizontality Matrix J, Walter Thompson ' Country / Regional | Managers HK Strategies BtoD Group WPP Digital ‘WPP Spec Comms aoe e ass

  22. Slide 22: Horizontality Client Leaders

    _ Horizontality 45 Client Leaders Over 38,000 WPP people work on these clients wT HSBC€> een Felefonica @ \ Boehringer CHANEL General 7 Ww) il) ingetheim (Pfizer) ED covanre-ratmouve RI Gotnson 4 HUAWE! AstraZ = = straZeneca mia F bp r Satat TE NOVARTIS prot Cet Bankof America @ L Gohmonagofmen re 4

  23. Slide 23: Horizontality: Country / Regional Managers

    Horizontality Country / Regional Managers Covering 51 out of Europe Russic | 12 countries Eastern Europe Portugal SS Turkey Greater China percey South Korea Mexico nae ME & N Africa Vietnam Indonesia Andina Australia New Zealand

  24. Slide 24: New Markets

    New Markets Our target Increase the share of revenue from fast growth markets to 40-45% Are we on target?

  25. Slide 25: New Media

    Our target Increase share of revenue from new media to 40-45% Are we on target? 29% 37.5% 42.5% 2010 2015 2020

  26. Slide 26: Data Investment Management

    » Data Investment Management and Quantitative — Our target aie Maintain the share of more measurable marketing services at 50% of revenue S— fe Are we on target?

  27. Slide 27: Four Differentiators

    Four Differentiators Talent ~~. Technology. Data | Content

  28. Slide 28: Annual General Meeting 2016

    Annual General Meeting 2016

WPP — Shareholder Meeting (2016) on 6ix