Wpp Plc · LSE:WPP
Wpp — Shareholder Meeting (2017)
38 slides from Wpp's shareholder meeting presentation, 2017
Slide 1: WPP Annual General Meeting 2017
Slide 2: Roberto Quarta
• Roberto Quarta
Slide 3: Slide 3
Slide 4: Sir Martin Sorrell
• Sir Martin Sorrell
Slide 5: Our Financial Performance Long-term Brand Building
• Our Financial Performance Long-term Brand Building
Slide 6: 31 Year History WPP Reported Revenue
31 Year History WPP Reported Revenue • 31 Year History WPP Reported Revenue 31 year CAGR 30% 14.389
Slide 7: 31 Year History WPP Net Sales
31 Year History WPP Net Sales • 31 Year History WPP Net Sales 31 year CAGR 30% 12.398
Slide 8: 31 Year History WPP PBIT and Margins
31 Year History WPP PBIT and Margins • 31 Year History WPP PBIT and Margins 29 Year CAGR: 34% 2004 onwards PBIT reported under IFRS
Slide 9: 31 Year History WPP Headline Diluted EPS
31 Year History WPP Headline Diluted EPS Post 1992 Rights Issue • 31 Year History WPP Headline Diluted EPS Post 1992 Rights Issue 23 Year CAGR: 15%
Slide 10: Investor Returns
Investor Returns • Investor Returns £1,000 invested in WPP = • £1,000 invested in FTSE = • $1,000 invested in WPP = • $1,000 invested in S&P 500 = 1985 2017 £ 85,970 • £ 19,021 • $ 91,681 • $ 26,036
Slide 11: Investor Returns
Investor Returns • Investor Returns £1,000 invested in WPP = • £1,000 invested in peer group = • 1985 2017 £ 85,970 • £ 37,157 Peer group - Omnicom, Publicis, IPG, Havas
Slide 12: The New Normal
The New Normal • The New Normal Low GDP Growth Low or No Inflation Little Pricing Power High Focus on Costs
Slide 13: The Legacy Spectrum
The Legacy Spectrum • The Legacy Spectrum Bill Ackman • Daniel Loeb • Nelson Peltz Disrupters Active Investors Zero Based Budgeters
Slide 14: Short Executive "Life Expectancy"
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) • 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 3.9 years) •
Slide 15: S&P 500 Effectively Shrinking
S&P 500 Effectively Shrinking 2009-2016 • S&P 500 Effectively Shrinking 2009-2016 100% of retained earnings
Slide 16: Rising FTSE Dividend Pay-Out Ratios
Rising FTSE Dividend Pay-Out Ratios • Rising FTSE Dividend Pay-Out Ratios 18
Slide 17: US Total Investment as % of GDP
US Total Investment as % of GDP • US Total Investment as % of GDP
Slide 18: Investment in Strong Brands Generates Superior Share Owner Returns
Investment in Strong Brands Generates Superior Share Owner Returns BrandZ™ Strong Brands Portfolio vs. S&P 500 vs MSCI inWorld • Investment StrongIndex Brands(Apr 2007– Apr 2017) Generates Superior Share Owner Returns BrandZ™ Strong Brands Portfolio vs. S&P 500 vs MSCI World Index (Apr 2007– Apr 201
Slide 19: Investment in Strong Brands Generates Superior Share Owner Returns
Investment in Strong Brands Generates Superior Share Owner Returns • Investment in Strong Brands Generates Superior Share Owner Returns In last 12 years, top 100 global brands • outperform S&P 500 by over two thirds • outperform MSCI over four times • Brands perceived as high on innovation (eg Amazo
Slide 20: The Global Communications Services Leader
The Global Communications Services Leader • The Global Communications Services Leader
Slide 21: A Global Company
A Global Company • A Global Company
Slide 22: Our 9 'Billion Dollar Brands'
Our 9 'Billion Dollar Brands'’ • Our 9 'Billion Dollar Brands'’ Nine WPP brands have generated revenues of $1 billion or more
Slide 23: Our 4 Strategic Priorities
Our 4 Strategic Priorities • Our 4 Strategic Priorities
Slide 24: Our 4 Strategic Priorities
Our 4 Strategic Priorities • Our 4 Strategic Priorities Horizontality New Markets New Media Technology, • Data & Content
Slide 25: Horizontality
Horizontality Our 4 strategic priorities • Horizontality Our 4 strategic priorities Horizontality Advance horizontality by ensuring our people work together for the benefit of clients
Slide 26: Horizontality: 48 Client Leaders
Horizontality 48 Client Leaders Over 38,000 WPP people work on these clients • Horizontality 48 Client Leaders Over 38,000 WPP people work on these clients
Slide 27: Horizontality: Country / Regional Managers
Horizontality Country / Regional Managers • Horizontality Country / Regional Managers Covering 52 out of 112 countries Andina India Indonesia & Vietnam Portugal Mexico Greater China South Korea ME & N Africa Australia & New Zealand Italy UK & Continental Europe Czech Turkey Israel Russia Cuba France
Slide 28: Horizontality Matrix
Horizontality Horizontality Matrix • Horizontality Horizontality Matrix Global Client Teams Country & Regional Managers Cross-Group • Communities • & Practices Advertising Media • Investment • Management Data • Investment • Management Public Relations • & Public Affairs Branding • & Identity Health
Slide 29: New Markets
New Markets Our 4 strategic priorities • New Markets Our 4 strategic priorities Increase share of revenue from faster-developing markets to 40-45% New Markets
Slide 30: New Media
New Media Our 4 strategic priorities • New Media Our 4 strategic priorities Increase share of revenue from new media to 40-45% New Media
Slide 31: Remain optimistic about mobile ad spend growth
New Media Remain optimistic about mobile ad spend growth… Print remains way over-indexed relative to time spent • New Media Remain optimistic about mobile ad spend growth… Print remains way over-indexed relative to time spent % of Time Spent in Media vs. % of Advertising Spending, USA, 2016
Slide 32: Advertising spend is increasingly moving to digital
New Media Advertising spend is increasingly moving to digital • New Media Advertising spend is increasingly moving to digital % of Total Media Consumption Time of Advertising Spending Proliferation of consumer media channels and devices • Mobile as the primary screen for content consumption • Digiti
Slide 33: [m]PLATFORM is the Foundation for Advertiser's Marketing Advantage
[m]PLATFORM is the Foundation for Advertiser’s Marketing Advantage, Bringing Brands and Consumers Closer Than Ever Before. • [m]PLATFORM is the Foundation for Advertiser’s Marketing Advantage, Bringing Brands and Consumers Closer Than Ever Before. We believe that if a brand embraces a consumer, the
Slide 34: Outcome-based media commitments
Outcome-based media commitments • • DATA-DRIVEN NATIVE SOLUTIONS • PERFORMANCE MEDIA SOLUTIONS • MEASURABLE BRAND SOLUTIONS • DIGITAL RETAIL SOULTIONS OUTCOME-BASED • MEDIA • MEASURABLE • RESULTS Number of downloads and Cost per Install • CPA • CPL 100% viewable impressions • Percentage in target im
Slide 35: Technology, Data & Content
Technology, Data & Content Our 4 strategic priorities • Technology, • data & content Technology, Data & Content Our 4 strategic priorities Maintain share of more measurable marketing services at 50% of revenues • 2016
Slide 36: Four Differentiators
Four Differentiators • Four Differentiators Talent Technology Data Content
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Slide 38: Slide 38