Wpp Plc · LSE:WPP

Wpp — FY2005 Earnings Presentation

78 slides from Wpp's earnings presentation, February 2006

  1. Slide 1: Results for 2005

    WPP Results for 2005 London February 2006 1

  2. Slide 2: Agenda

    WPP 1 Results for 2005 2 Key Priorities, Objectives and Strategy 3 Conclusions 4 Structure and Competitive Position (Hard Copy Only) 2

  3. Slide 3: Results for 2005

    WPP 1 Results for 2005 3

  4. Slide 4: Results for 2005

    Results for 2005 • Billings up over 36% to almost £27 billion. • Reported revenue up 25%. On a constant currency basis, revenue up almost 23%. Like-for-like revenue up over 5%. • Headline PBIT up almost 35% to £754.8m from £560.2m. • Operating margin up 1.0 margin points to 14.0% from 13.0%. 4

  5. Slide 5: Results for 2005

    Results for 2005 • Headline PBT up over 36% to £669.0m from £489.6m. • Diluted headline EPS up 29% to 36.0p from 27.9p. • Full year dividend up 20% to 9.34p per share. • Estimated net new business billings of over £2.8 billion ($5.2 billion). • Strong start to 2006 with $0.6 billion of net new busin

  6. Slide 6: Unaudited IFRS Income Statement

    Results for 2005 Unaudited IFRS Income Statement Year to 31 December Constant 2005 2004 Change Currency £m £m % % Revenue 5,373.7 4,299.5 25.0 22.9 Operating Profit pre-goodwill/ intangibles 725.2 528.7 37.2 33.9 Goodwill/ intangibles charges, FA gains/losses (72.4) (53.2) (36.1) (34.9) Operating Pr

  7. Slide 7: Unaudited Headline IFRS Income Statement

    Results for 2005 Unaudited Headline¹ IFRS Income Statement Year to 31 December 2005 2004 Change Constant £m £m % Currency % Revenue 5,373.7 4,299.5 25.0 22.9 Headline operating profit 720.9 530.7 35.8 32.4 Income from associates 33.9 29.5 14.9 10.3 Headline PBIT 754.8 560.2 34.7 31.3 Interest and si

  8. Slide 8: Headline performance versus consensus

    Results for 2005 Headline¹ performance versus consensus Median Actual Consensus Results +/ (-) Revenue £5,269m £5,374m £105m PBIT £721m £755m £34m PBIT Margin 13.7% 14.0% 0.3 bps PBT £625m £669m £44m Fully Diluted EPS 33.7p 36.0p 2.3p ¹ Figures before goodwill and intangibles charges, fixed asset ga

  9. Slide 9: Revenue by Discipline

    Results for 2005 Revenue by Discipline Revenue 2005 2004 % Change £m £m Reported Constant Like-for- Currency like Advertising, Media Investment Management 2,606.4 1,985.3 31.3 28.6 4.3 Information, Insight & Consultancy 810.4 744.8 8.8 7.3 6.4 Public Relations & Public Affairs 534.4 445.2 20.0 18.7

  10. Slide 10: Revenue by Region

    Results for 2005 Revenue by Region Revenue 2005 2004 % Change £m £m Reported Constant Like-for- Currency like North America 2,106.9 1,651.9 27.5 25.9 5.8 UK 808.1 728.5 10.9 10.9 1.9 Continental Europe 1,410.3 1,134.8 24.3 23.0 2.9 Asia Pacific, Latin America, Africa & Middle East 1,048.4 784.3 33.7

  11. Slide 11: Headline PBIT and Margin by Discipline

    Results for 2005 Headline1 PBIT and Margin by Discipline Headline1 PBIT Headline1 margin 2005 2004 2005 2004 £m £m % % Advertising, Media Investment 402.7 295.0 15.5 14.9 Management Information, Insight & Consultancy 83.4 66.1 10.3 8.9 Public Relations & Public Affairs 75.3 58.4 14.1 13.1 Branding &

  12. Slide 12: Headline PBIT and Margin by Region

    Results for 2005 Headline1 PBIT and Margin by Region Headline1 PBIT Headline1 margin 2005 2004 2005 2004 £m £m % % North America 350.1 251.2 16.6 15.2 UK 84.6 75.7 10.5 10.4 Continental Europe 176.1 128.1 12.5 11.3 Asia Pacific, Latin America, 144.0 105.2 13.7 13.4 Africa & Middle East Total 754.8 5

  13. Slide 13: Revenue Growth by Country

    Results for 2005 Revenue Growth by Country Revenue Growth1 Countries >25% Australia, Canada, China, Denmark, Germany, Hong Kong, India, Mexico, Sweden, USA 20-25% Brazil 15-20% Japan, Netherlands, Singapore, Spain, Taiwan 10-15% France, UK 5-10% Italy 0-5% Belgium 1 Constant currency 13

  14. Slide 14: Revenue Growth by Category

    Results for 2005 Revenue Growth by Category Revenue Growth1 Categories >25% Electrical, Financial Services, Personal Care & Drugs 20-25% 15-20% Computer, Drinks, Oil 10-15% Food, Telecommunications 5-10% Automotive 0-5% Retail 1 Constant currency 14

  15. Slide 15: Effects of Weakness of Sterling

    Results for 2005 Effects of Weakness of Sterling • Sterling was weaker on average in 2005 than in 2004 by 0.7% against both the dollar and the euro. • Impact of currency increased revenue by 2.1%, from 22.9% constant currency to 25.0% on a reportable basis. • Headline PBT¹ of £669m would have been £

  16. Slide 16: Major New Business Wins (1)

    Results for 2005 Major New Business Wins (1) Agency Account Office Billings ($m) MediaCom VW USA 500 Y&R Advertising Sears2 USA 350 MediaCom P&G - Gillette³ Global 250 mec Cingular USA 200 mec Novartis1 Global 200 MindShare Telefonica Europe 200 MediaCom IKEA Global 175 WINS Y&R Advertising Bacardi

  17. Slide 17: Major New Business Wins (2)

    Results for 2005 Major New Business Wins (2) Agency Account Office Billings ($m) JWT Texas Instruments USA 79 Brand Buzz (Y&R Advertising) LG USA 70 Kinetic ² Unilever UK 65 Y&R Advertising/ mec AMD USA 60 Y&R Advertising Danone Europe 50 JWT/ MediaCom Jet Blue USA 50 Grey Worldwide Manpower USA 50

  18. Slide 18: Major New Business Losses

    Results for 2005 Major New Business Losses Agency Account Office Billings ($m) MindShare P&G - Gillette³ Global/ USA 800 2 Ogilvy Sears USA 350 JWT/ United/red cell Samsung Global 200 United/red cell Coca Cola USA 150 Y&R Sony USA 125 JWT Unilever Global 100 MediaCom Novartis1 Global 100 LOSSES Y&R

  19. Slide 19: Net new business wins in 2005

    Results for 2005 Net new business wins in 2005¹ US $ millions Creative Media Total Advertising 1,302 2,891 4,193 Other Businesses 1,034 - 1,034 Total 2005 2,336 2,891 5,227 Total 2004 1,825 5,005 6,829 ¹ Estimated billings 19

  20. Slide 20: Major new business wins/losses in 2006

    Results for 2005 Major new business wins/losses in 2006 Agency Account Office Billings ($m) MindShare Wrigley USA 200 MediaCom Nokia Asia Pacific 150 Ogilvy Quinzos USA 80 WINS MindShare Unilever Indonesia 75 Brouillard Ruby Tuesday USA 60 MediaCom Digital UK UK 35 Grey Direct Sandisk Global 30 LOSS

  21. Slide 21: Cash Flow

    Results for 2005 Cash Flow 2005 2004 £m £m Operating profit (pre-goodwill/intangibles charges) 725 529 Non cash compensation 69 59 Depreciation 122 103 Net interest paid & similar charges (60) (51) Tax paid (136) (101) Net cash generation 720 539 21

  22. Slide 22: Uses of Cash Flow

    Results for 2005 Uses of Cash Flow 2005 2004 £m £m Net cash generation 720 539 Capital expenditure (171) (96) Acquisition payments: − Net initial payments - Grey (244) - - Other (134) (103) − Earnout payments (97) (79) − Loan note redemptions (33) (27) (508) (209) Share repurchases (152) (89) Other

  23. Slide 23: Net Interest Expense/(Income)

    Results for 2005 Net Interest Expense/ (Income) £’m IFRS IFRS % 2005 2004 B/(W) Net bank interest 59.7 50.2 (19%) A/R interest/ fees 6.4 5.1 (25%) Net bank and A/R interest 66.1 55.3 (20%) Investment income (5.6) - - IAS 19 (Pensions) 7.8 9.5 18% IAS 39 (Financial Instruments) 8.9 - - Earnout intere

  24. Slide 24: Net Debt – 31st December 2005

    Results for 2005 Net Debt – 31st December 2005 2005 2004 % £m £m Variance Net debt at 31 December (804) (555) (45%) YTD average net debt on constant (1,212) (1,080) (12%) currency basis Net interest1 (66) (55) (20%) EBIT²/ Net interest1 11.4x 10.2x ¹ Net interest on bank debt and AR facility ² Headl

  25. Slide 25: Average Debt/EBITDA

    Average Debt/EBITDA times 1,600 3.0 1,400 1,200 2.5 average debt/EBITDA 1,000 £ millions 800 2.0 600 400 1.5 200 0 1.0 2000 2001 2002 2003 2004 2005 average debt EBITDA average debt/EBITDA 25

  26. Slide 26: Ordinary Shares – Basic

    Results for 2005 Ordinary Shares – Basic Dec Dec 2005 2004 No. of Shares (million) Actual Actual Opening 1,185 1,187 Share buyback¹ (21) (13) LEAP issue 1 4 Option exercise 10 7 Grey 78 - Closing 1,253 1,185 Weighted Average 1,247 1,183 ESOP (47) (47) Basic Reported 1,200 1,136 ¹ Buyback for cancell

  27. Slide 27: Ordinary Shares – Diluted

    Results for 2005 Ordinary Shares – Diluted Dec Dec 2005 2004 No. of Shares (million) Actual Actual Average Basic 1,200 1,136 WPP Options and LEAP 25 26 Convertibles: Y&R $288m repaid 16 WPP £450m ¹ anti-dilutive 42 Grey $150m ² anti-dilutive - Fully Diluted Shares 1,225 1,220 Income Adjustment Attri

  28. Slide 28: Earnings and EPS

    Earnings and EPS¹ Earnings (£m) 2004 WPP GAAP IFRS 36.0p 450 32.3p 400 30.6p 27.9p 29.0p 350 23.8p² 300 30.1p 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 ¹ Diluted Headline Earnings and Diluted Headline EPS ² Restated for implementation of UITF 38 (Accounting for ESOP Trusts) 28

  29. Slide 29: Key Priorities, Objectives and Strategy

    WPP 2 Key Priorities, Objectives and Strategy 29

  30. Slide 30: Long-term factors

    Key Priorities, Objectives and Strategy Long-term factors • Globalisation / Americanisation / BRICs • Overcapacity, shortage of human capital • The Web • Internal communications • Retail concentration 30

  31. Slide 31: The two speed world

    Key Priorities, Objectives and Strategy The two speed world • Media planning and buying growth strong driven by media fragmentation and share gains from consolidation • Advertising growth slower in US and Western Europe but stronger in Asia Pacific, Latin America, Middle East and Eastern Europe • Us

  32. Slide 32: Update on Grey Global Group

    Key Priorities, Objectives and Strategy Update on Grey Global Group • Successful integration of Grey into the Group • Jim Heekin appointed CEO of Grey Worldwide and management structure agreed for all Grey operating companies • Revenue and profit growth ahead of expectations • Operating margin above

  33. Slide 33: Key Priorities, Objectives and Strategy

    Key Priorities, Objectives and Strategy • Faster growing markets to be one third of total group • Marketing services to be two thirds of total group • Quantitative disciplines to be one half of total group 33

  34. Slide 34: Faster Growing Markets To Be One Third of Total Group

    Key Priorities, Objectives and Strategy Faster Growing Markets To Be One Third of Total Group WPP Today WPP Today Incl. Associates WPP Tomorrow incl. Associates A sia P acific, Latin Asia Pacific, Latin A merica, A frica & America, Africa & M iddle East M iddle East 20% Asia P acific, Latin 25% A me

  35. Slide 35: WPP's Performance Strong in BRIC Markets

    Key Priorities, Objectives and Strategy WPP’s Performance Strong in BRIC Markets Revenue $’m 400 350 300 Associates @ 100% 250 200 150 100 50 0 95 00 05 95 00 05 95 00 05 95 00 05 19 20 20 19 20 20 19 20 20 19 20 20 China (including Brazil India Russia Hong Kong and 35 Taiwan)

  36. Slide 36: Revenue by Geography

    Key Priorities, Objectives and Strategy Revenue by Geography N. America Europe ROW ROW Total Sales % % $’bn % $’bn WPP¹ 39% 41% 1.9 20% 9.8 OMC¹ 56% 36% 0.9 8% 10.5 Havas 42% 50% 0.2 8% 2.2 Publicis¹ 43% 40% 0.9 17% 5.1 IPG 58% 28% 0.9 14% 6.1 Source: Campaign April 14th, 2005, ¹ Company reports for

  37. Slide 37: Media Billings by Geography

    Key Priorities, Objectives and Strategy Media Billings by Geography Worldwide rankings by Group as % of the Six Groups 35 30 25 WPP 20 Publicis Omnicom 15 IPG 10 Aegis Havas 5 0 Americas Europe Asia Pacific Global Source: RECMA Report w29 Billings November 2005 table 1b 37

  38. Slide 38: Marketing Services To Be Two Thirds of Total Group

    Key Priorities, Objectives and Strategy Marketing Services To Be Two Thirds of Total Group Today Today including associates Tomorrow 33% 48% 48% 52% 52% 67% Advertising & Media Investment Management Marketing Services 38

  39. Slide 39: Revenue by Discipline

    Key Priorities, Objectives and Strategy Revenue by Discipline Advertising & Media Marketing Services $’bn % Sales $’bn % Sales WPP 4.7 48% 5.1 52% OMC² 4.6 44% 5.9 56% Havas¹ 1.1 52% 1.1 48% Publicis² 4.0 78% 1.1 22% IPG³ 3.9 64% 2.2 36% Source: ¹ Campaign April 4th, 2005 ² 2005 Company Presentation

  40. Slide 40: Quantitative Disciplines To Be One Half of Total Group

    Key Priorities, Objectives and Strategy Quantitative Disciplines To Be One Half of Total Group Today Today including associates Tomorrow 33% 35% 50% 50% 67% 65% Information, Insight & Consultancy and Direct, Internet & Interactive Advertising, Media Investment Management & Other Marketing Services 4

  41. Slide 41: We continue to focus on our key objectives

    Key Priorities, Objectives and Strategy 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 the parent company • Emphasi

  42. Slide 42: Improving Operating Margins: History

    Key Priorities, Objectives and Strategy PBIT1 Improving Operating Margins¹: History £’m PBIT1 margin 900 % 20% Long-term target 19% 800 801 15.5% 700 15.0% 16.0% 16% 14.5% 14.1% 14.0% 14.5% 15.0% 13.0% 14.0% 600 12.3% 13.0% 608 12% 561 500 534 480 400 431 8% 300 200 4% 100 0 0% 2000 2001 2002 2003 2

  43. Slide 43: Improving Operating Margin: Prospects

    Key Priorities, Objectives and Strategy Improving Operating Margin¹: Prospects Old Forecast New Forecast UK UK IFRS GAAP2 IFRS GAAP2 2004 Actual 13.0% 14.1% 13.0% 14.1% 2005 13.7% 14.8% 14.0% 15.0% 2006 14.2% 15.3% 14.5% 15.5% 2007 14.7% 15.8% 15.0% 16.0% Long term target 19% 20% 19% 20% 1 Headline

  44. Slide 44: Increasing flexibility in the cost base

    Key Priorities, Objectives and Strategy Increasing flexibility in the cost base • We continue to focus on a more flexible cost structure in three key areas: „ Staff c. 50% of revenue „ Property c. 7% of revenue „ Bought in services c. 30% of revenue • Increased flexibility in all areas important to

  45. Slide 45: Increasing flexibility in the cost base

    Key Priorities, Objectives and Strategy Increasing flexibility in the cost base Change in variable costs % 14 13.2 12.8 2000 12.1 2004 12 2005 10 7.8 7.6 8 6.6 6 4 2 0 Variable Staff costs as a % of Staff costs Variable Staff costs as a % of Revenue 45

  46. Slide 46: Using Free Cashflow to Enhance Share Owner Value

    Key Priorities, Objectives and Strategy Using Free Cashflow to Enhance Share Owner Value Dividends and Share Repurchases • 2005 dividend raised by 20% to 9.34p per share • Share repurchases and buy-backs Shares Amount % of Share Base 2000 10.3m £94.1m 1.3% 2001 15.4m £103.3m 1.4% 2002 12.8m £75.9m 1

  47. Slide 47: Using Free Cash Flow: Acquisitions

    Key Priorities, Objectives and Strategy Using Free Cash Flow to Enhance Share Owner Value Acquisitions • Grey consolidated from 7 March 2005 • Continued focus on small and mid-sized strategic acquisitions - a number completed during the year • Major focus continues to be on information, insight and

  48. Slide 48: Use of Free Cash Flow on Acquisitions in 2005

    Key Priorities, Objectives and Strategy Use of Free Cash Flow on Acquisitions in 2005 Faster Growing Market Quantitative and Digital Santo Argentina Oracle (Hong Kong) Dynamic Logic (USA) Propaganda (Russia) MRI (Korea) Kantar/ ARRP (USA) TCG (Australia) RI China M:Metrics (USA) Video Int’l (Russia)

  49. Slide 49: Use of Free Cash Flow on Acquisitions in 2005

    Key Priorities, Objectives and Strategy Use of Free Cash Flow on Acquisitions in 2005 Advertising and Media Other Investment Management Snra Rushmore (Spain) ABC (PR - Denmark) BAT Media (Spain) Federalist Group (PR - USA) Malone Advertising (USA) Gallagher (USA) Weinstein Company (USA) 49

  50. Slide 50: Return on Capital Employed

    Return on Capital Employed % 15 12.7 10 9.4 9.1 8.5 7.5 WACC 7.8% 6.8 5 0 00 01 02 03 04 05 Methodology: Headline PAT adjusted for cash interest and tax, 00-03 based on old UK GAAP and 04-05 on IFRS. 50

  51. Slide 51: Improving Return on Capital Employed

    Key Priorities, Objectives and Strategy Improving Return on Capital Employed 16.0% Y&R Margins 14.0% WPP Margins 12.0% 10.0% 8.0% WACC¹ WPP ROCE 6.0% 4.0% Y&R ROCE 2.0% 0.0% 2000 2001 2002 2003 2004 2005 51 ¹ WACC for 2005

  52. Slide 52: Developing the Role of the Parent Company

    Key Priorities, Objectives and Strategy Developing the Role of the Parent Company Key areas for Group co-operation • Media planning, buying • Internal and research communications • Healthcare • Retail • New technologies • Hi-tech • Emerging Markets • Financial Services • Privatisation • Entertainmen

  53. Slide 53: Emphasise Revenue Growth More as Margins Improve

    Key Priorities, Objectives and Strategy Emphasise Revenue Growth More as Margins Improve • Continue to focus on delivering above average revenue growth by: − Expanding networks to take advantage of faster growing geographical markets − Re-enforcing competitive advantage in segments where growth is e

  54. Slide 54: Improving the Creative Capabilities and Reputation

    Key Priorities, Objectives and Strategy Improving the Creative Capabilities and Reputation of all our Businesses • By placing greater emphasis on recruitment • By recognizing creative success tangibly and intangibly • By acquiring highly regarded creative businesses • By placing greater emphasis on

  55. Slide 55: Conclusions

    WPP 3 Conclusions Conclusions 55

  56. Slide 56: Conclusions

    Conclusions • The Group continues to be well placed by region and discipline to benefit from key industry trends • There is scope for further margin improvement, cost flexibility, use of free cashflow to enhance share owner value • In the long term the Group will be concentrating on positioning its

  57. Slide 57: Structure and Competitive Position (Hard Copy Only)

    WPP 4 Structure and Competitive Position (Hard Copy Only) 57

  58. Slide 58: WPP Today

    WPP Today • WPP is one of the world’s largest communication services groups • Over 91,000 people (including associates) in over 2,000 offices in 106 countries worldwide • Over 330 of the Fortune 500 and over 50% of the NASDAQ 100 as clients, more than 230 clients in all four disciplines, over 200 cl

  59. Slide 59: WPP Today

    WPP Today WPP has many of the best known brands in the industry, Ranked 1 or 2 in all sectors in which it competes Ogilvy & Mather Worldwide Research International JWT Millward Brown Y&R Advertising BrandAsset Valuator and BRANDZ United / red cell Grey Worldwide OgilvyOne Wunderman MindShare rmg:con

  60. Slide 60: Global Strength in Advertising

    WPP Today Global Strength in Advertising Market Position (Gross Income) WPP (1) OMC IPG Publicis USA 1 4 2 3 EMEA 1 2 4 3 Asia Pacific (2) 1 2 4 3 Japan 3 5 4 7 Latin America 1 4 2 3 Source: Advertising Age, 22 April 2002. Based on gross income for agency brands (1) Includes Cordiant acquired on 1 A

  61. Slide 61: Worldwide Advertising rank by market

    WPP Today Worldwide Advertising rank by market WPP (1) OMC IPG Publicis Australia 1 2 4 3 Belgium 1 3 2 5 Brazil 1 4 2 3 France 4 1 5 3 Germany 1 2 3 4 Greater China 1 6 3 2 India 1 3 2 4 Italy 1 5 3 2 Japan 3 5 4 7 Mexico 1 3 2 4 Netherlands 2 1 4 3 Russia 2 1 4 3 Singapore 1 3 4 2 Spain 1 3 2 4 So

  62. Slide 62: WPP Today

    WPP Today Revenue £5.4bn WPP PBIT £755m Branding & Identity, Media Information, Public Relations Healthcare and Advertising Investment Insight & & New Technology Management Specialist Consultancy Public Affairs Communications Revenue £2.6bn Revenue £810m Revenue £534m Revenue £1.4bn Revenue Wide £60

  63. Slide 63: Advertising

    WPP Today Advertising Ogilvy & Y&R Mather JWT Grey United Advertising Worldwide (Global) Worldwide (Global) (Global) (Global) Chairman & CEO: Chairman: Peter Schweitzer Chairman & CEO: Chairman & CEO: CEO: Shelly Lazarus CEO: Bob Jeffrey Ann Fudge Jim Heekin Andy Berlin DY&R Asatsu - DK Chime Bates

  64. Slide 64: Advertising - Competitive Worldwide Ranking

    WPP Today Advertising - Competitive Worldwide Ranking Worldwide JWT 3 Ogilvy & Mather 8 Grey Worldwide 9 Y&R Advertising 13 Source: Advertising Age, 19 April 2004 64

  65. Slide 65: Media Investment Management

    WPP Today Media Investment Management: CEO: Irwin Gotlieb GroupM KR Media MindShare Mediaedge:cia MediaCom Maxus (minority) CEO: Dominic Proctor Chairman: Charles Courtier CEO: Alex Schmidt-Vogel COO: Nick Daly Joint CEO: Bruno Kemoun CEO: Dominic Grainger Joint CEO: Eryck Rebbouh Kinetic 65

  66. Slide 66: Media Investment Management - Competitive Worldwide Ranking

    WPP Today Media Investment Management - Competitive Worldwide Ranking Americas EMEA Asia Pacific Worldwide MindShare 3 5 1 3 Mediaedge:cia 5 4 8 5 MediaCom 8 3 7 7 WPP Media Operations (1) 1 Source: RECMA Billings & Rankings 2004 Projected, published March 2005 66

  67. Slide 67: Information, Insight & Consultancy

    WPP Today BrandAsset Information, Chairman & CEO: Valuator Insight Eric Salama & Consultancy BRANDZ Kantar Research Millward International Brown Mattson Added Value Ziment BPRI Jack Group Group Center Management Partners Glendinning Cannondale Ventures IMRB AMRB Henley Centre Headlight Vision KMR AG

  68. Slide 68: Information, Insight & Consultancy - Worldwide Competitive Ranking

    WPP Today Information, Insight & Consultancy - Worldwide Competitive Ranking 1. VNU (ACNielsen & Nielsen Media Research) 2. Taylor Nelson Sofres plc 3. IMS Health Inc. 4. The Kantar Group 5. GfK Group Source: ESOMAR, November 2005 68

  69. Slide 69: Public Relations & Public Affairs

    WPP Today Public Relations Executive Vice President, & Public Relations/Public Affairs: Howard Paster Public Affairs Ogilvy Public Robinson Hill and Burson- Cohn & Relations GCI Lerer & Knowlton Marsteller Wolfe Worldwide Montgomery Chairman & CEO: Chairman & CEO: Founding Chairman: President & CEO:

  70. Slide 70: Public Relations & Public Affairs - Competitive Worldwide Ranking

    WPP Today Public Relations & Public Affairs - Competitive Worldwide Ranking Worldwide Hill & Knowlton 3 Burson-Marsteller 4 GCI 9 Ogilvy Public Relations Worldwide 10 Source: Advertising Age, 22 April 2002 70

  71. Slide 71: Branding & Identity

    WPP Today Branding & Identity CEO: Rodney Fitch Fitch BtoD Group CEO: Craig Branigan The Partners Landor Enterprise IG Addison Lambie-Nairn Walker Group 71

  72. Slide 72: Healthcare

    WPP Today Healthcare CommonHealth Ogilvy Healthworld Grey Healthcare Group Sudler & Hennessey 72

  73. Slide 73: Direct, Internet and Interactive

    WPP Today Direct, Internet and Interactive JWT Specialised Grey Synchronized rmg:connect Wunderman OgilvyOne 141 Communications Partners Grey Direct G2 Worldwide Gi J.Brown 73

  74. Slide 74: Specialist Communications

    WPP Today Specialist Communications Relationship Media, Technology Sports Demographic Industry Sector Marketing and Fitch & Production Marketing Marketing Marketing Promotion Services 74

  75. Slide 75: Specialist Communications

    WPP Today Specialist Communications Relationship Demographic Marketing & Promotion Marketing The Geppetto Group Einson Freeman Uniworld Group * EWA Forward Group Mando Marketing VML Brierley & Partners* Grass Roots* * Associate companies 75

  76. Slide 76: Specialist Communications

    WPP Today Specialist Communications Media, Technology & Industry Sector Sports Marketing Production Services Marketing Global Sportnet Metro Group The Food Group Premiere Sponsorship Spafax Pace Marketing The Farm PRISM Group Uncle 76

  77. Slide 77: New Technology

    WPP Today New Technology CEO: Mark Read New Technology Wunderman OgilvyInteractive Interactive Content Portal Web Dev’t Software Data Mining Sports Loyalty & Information Rel. Mktg 77

  78. Slide 78: Results for 2005

    WPP Results for 2005 London February 2006 78

WPP — FY2005 Earnings Presentation on 6ix