Wpp Plc · LSE:WPP

Wpp — Q1 2009 Earnings Presentation

22 slides from Wpp's earnings presentation, Apr 28, 2009

  1. Slide 1: Trading Statement for the First Quarter 2009

    WPP Trading Statement for the First Quarter 2009 28 April 2009 1

  2. Slide 2: First Quarter 2009 Summary

    First Quarter 2009 Summary Currency movements increased revenue growth by 24.8%, resulting in reported revenue growth of 35.9%. Like-for-like revenue down 5.8%, with acquisitions, principally TNS, adding 16.9% to give constant currency growth of 11.1%. Geographically, on a like-for-like basis most r

  3. Slide 3: Summary – Revenue Growth

    First Quarter 2009 Summary – Revenue Growth % Like-for-like -5.8 Acquisitions 16.9 Constant currency 11.1 Foreign exchange 24.8¹ Reported 35.9 ¹ Average Q1 2009 exchange rate for US$/ £ was $1.435 (Q1 2008 $1.978), €/£ was €1.101 (Q1 2008 €1.321) and Japanese Yen/£ was Y134.4 (Q1 2008 Y208.4). 3

  4. Slide 4: Revenue by Discipline

    First Quarter 2009 Revenue by Discipline 2009 2008 % Change £m £m Reported Constant Like-for- Currency like Advertising, Media Investment Management 812.1 695.1 16.8 -3.5 -3.9 Information, Insight & Consultancy 552.0 227.1 143.1 101.5 -6.4 Public Relations & Public Affairs 201.6 167.2 20.6 -4.3 -6.1

  5. Slide 5: Advertising, Media Investment Management

    First Quarter 2009 Advertising, Media Investment Management Constant currency revenue down over 3%. Like-for-like revenue down almost 4%. On a like-for-like basis advertising particularly affected by the downturn, but media investment management better, with strong growth in Asia Pacific, the United

  6. Slide 6: Information, Insight and Consultancy

    First Quarter 2009 Information, Insight and Consultancy Constant currency revenue growth up over 100% reflecting the impact of TNS in the first quarter, with like-for-like revenue down over 6%. Strong organic growth from TNS Worldpanel, iTRAM, IMRB, Center Partners and MRB Group, with Lightspeed als

  7. Slide 7: Public Relations & Public Affairs

    First Quarter 2009 Public Relations & Public Affairs Constant currency revenue down over 4%, with like-for-like revenue down over 6%. Geographically, North America and the United Kingdom most affected, but strong growth in Latin America and the Middle East with Continental Europe flat. Acquisition i

  8. Slide 8: Branding & Identity, Healthcare and Specialist Communications

    First Quarter 2009 Branding & Identity, Healthcare and Specialist Communications Constant currency revenue down over 5%. Like-for-like growth down almost 8%. Strong performances at 24/7 Real Media, Schematic, Bridge, Spafax, Addison, The Partners and CommonHealth. Continuing pressure at some of the

  9. Slide 9: Revenue by Region

    First Quarter 2009 Revenue by Region 2009 2008 % Change £m £m Reported Constant Like-for- Currency like North America 784.9 580.9 35.1 -0.9 -9.2 UK 251.1 216.4 16.0 16.0 -2.2 Continental Europe 608.0 419.0 45.1 24.6 -6.3 Asia Pacific, Latin America, Africa & Middle East 472.6 341.7 38.3 15.0 -1.4 To

  10. Slide 10: Growth by Region

    First Quarter 2009 Growth by Region North America most affected by economic pressure with like-for-like revenue down over 9%. The United Kingdom was less affected, with like-for-like revenue down just over 2%. Asia Pacific, Latin America, Africa and the Middle East was least affected with like- for-

  11. Slide 11: Growth by Country

    First Quarter 2009 Growth by Country Revenue Growth¹ Countries Above 0% Argentina, Brazil, Mainland China, India, Mexico, Poland, Russia, South Africa 0 to -5% France, Germany, Hong Kong, UK > -5% Australia, Belgium, Canada, Denmark, Dubai, Italy, Japan, Netherlands, Norway, Singapore, Spain, Sweden

  12. Slide 12: Growth by Category

    First Quarter 2009 Growth by Category Revenue Growth¹ Categories Above 0% Computer, Electronics, Oil 0 to -5% Entertainment, Food, Government, Personal Care & Drugs, Travel & Airline > -5% Automotive, Drinks, Financial Services, Retail, Telecommunications 1 Like-for-like 12

  13. Slide 13: Effects of Strength of Sterling

    First Quarter 2009 Effects of Strength of Sterling Currency movements accounted for a 24.8% increase in revenue, reflecting the weakness of the £ sterling against the US dollar, the euro and the Japanese yen. The average US dollar exchange rate for the First Quarter of 2009 was $1.435/£1 compared to

  14. Slide 14: Uses of Cashflow

    First Quarter 2009 Uses of Cashflow Average net debt in the first three months up £1.340 billion to £3.421 billion, compared to £2.081 billion in 2008, at 2009 exchange rates. This increase was less than the £1.6 billion incurred in the course of the TNS and other acquisitions. Net debt at 31 March

  15. Slide 15: Net Debt

    First Quarter 2009 Net Debt 2009 2008 % £m £m Variance (As reported) YTD average net debt (3,421) (1,669) -105.0% Rolling 12 month average net debt (2,637) (1,616) -63.2% Net Debt at 31 March: (3,752) (2,152) -74.3% 15

  16. Slide 16: Impact of FX on debt year to March 2009

    First Quarter 2009 Impact of FX on debt year to March 2009 £ millions 4,000 3,752 3,500 Reported FX TNS 3,068 1,333 3,000 2,593 2,500 1,333 441 2,000 1,628 1,500 342 2,419 2,152 2,172 1,000 1,857 1,735 1,286 500 0 Dec '07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 16

  17. Slide 17: Debt Maturity Profile

    First Quarter 2009 Debt Maturity Profile £m As at 31 March 2009 Maturity Total Total 2009 2010 2011 2012 2013 2014 2015 2016 2017 . 2020 Credit Drawn £ bonds £200m (6.375% ’20) 200 200 200 £ bonds £400m (6% ’17) 400 400 400 Eurobonds €750m (6.625% ’16) 694 694 694 Eurobonds €500m (5.25% ’15) 463 463

  18. Slide 18: Trade Estimates of Major New Business Wins – Year to Date

    First Quarter 2009 Trade Estimates of Major New Business Wins – Year to Date Agency Account Office Billings ($m) Wunderman Microsoft Worldwide 200 Wunderman Nokia Worldwide Not disclosed mec Sony Latam 150 JWT Microsoft Worldwide 100 JWT/ Mindshare Egyptian Tourist Authority EMEA 100 Mindshare Inter

  19. Slide 19: Trade Estimates of Major New Business Losses – Year to Date

    First Quarter 2009 Trade Estimates of Major New Business Losses – Year to Date Agency Account Office Billings ($m) mec Canon EMEA 75 KR Media LVMH UK 47 mec Long John Silvers USA 35 United Silk Soya Milk USA 30 JWT Vodafone Germany 30 19

  20. Slide 20: Internal Estimates of Net New Business Wins

    First Quarter 2009 Internal Estimates of Net New Business Wins¹ Billings ($m) Creative Media Total Advertising 328 871 1,199 Other Businesses 290 - 290 Total 618 871 1,489 1 Same quarter last year $1.1 billion 20

  21. Slide 21: Acquisitions and Investments

    First Quarter 2009 Acquisitions¹ and Investments Faster Growing Quantitative and Markets Digital Danone CRM (France) H&K Feedback (Poland) H-art (Italy) Jupiter Drawing Room (S. Africa) Omniture² (USA) Smart Media (Vietnam) Red Dot Square (UK, USA) Video Egg Series E² (USA) Healthcare Lob Conseils (

  22. Slide 22: WPP

    WPP Trading Statement for the First Quarter 2009 28 April 2009 22

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