Wpp Plc · LSE:WPP
Wpp — H1 2025 Earnings Presentation
38 slides from Wpp's earnings presentation, Aug 7, 2025
Slide 1: Interim Results
INTERIM RESULTS 07 August 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This document contains statements that are, or may be advertising budgets; shifts in industry rates of compensation; activity in the Company’s major markets (which varies deemed to be, “forward-looking statements”. Forward- regulatory complia
Slide 3: Agenda
• Highlights • Financial performance • WPP Media • Summary and Q&A
Slide 4: Highlights
HIGHLIGHTS Mark Read
Slide 5: H1 2025 Highlights
H1 2025 HIGHLIGHTS • Like-for-like (LFL1) revenue less pass-through costs -4.3%, Q2 -5.8% – Macro uncertainty leading to cuts to client spending combined with slower net new business and one-off factors • Strong financial discipline – Structural cost savings and back-office efficiencies enabling inv
Slide 6: 2025 Priorities: Progress in H1
2025 PRIORITIES: PROGRESS IN H1 WPP Open Media Media New New Business Business Further drive investment in WPP Improve the competitiveness of our Provide an increasingly integrated Open to keep it at the forefront media offer, globally, with a focus offer across creative, production, of AI and deplo
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Joanne Wilson
Slide 8: Performance vs July Trading Update
PERFORMANCE VS JULY TRADING UPDATE Adjusted net debt WPP Open LFL revenue less pass-through costs • Q2 and H1 in line with July Trading Update: LFL revenue less Headline operating • April and May consistent with pass-through costs profit/margin original guidance in February • June saw a deterioratio
Slide 9: Performance by Business
PERFORMANCE BY BUSINESS 1 LFL REVENUE LESS PASS-THROUGH COSTS GROWTH Q2 ’25 (Q2 ’24) • Global Integrated Agencies: o WPP Media: Q2 LFL impacted by cuts in client spending, one-off factors, and the ramping down of a Q1 client loss 20% o Other Integrated Creative Agencies: Specialist Agencies -1.9% 41
Slide 10: Performance by Region
PERFORMANCE BY REGION 1 LFL REVENUE LESS PASS-THROUGH COSTS GROWTH Q2 ’25 (Q2 ’24) • North America: Q2 decline reflected a QoQ deterioration from a tougher Q2 comp and the ramp down of a Q1 client loss • UK: impacted by historical client losses AP, LA, AME, CEE -6.8%2 North America -4.6% and continu
Slide 11: Performance by Client Sector
PERFORMANCE BY CLIENT SECTOR LFL REVENUE LESS PASS-THROUGH COSTS Q2 ‘25 (Q2 ‘24)1 3% 3% 4% Telecom, media & 6% CPG -8.3% (+5.1%) entertainment -7.4% (+5.4%2) 28% Financial services -4.5% (+1.9%) 6% Tech & digital services -1.2% (-1.2%2) Other -14.6% (-15.7%) Healthcare & pharma -0.5% (-9.7%) 9% Trav
Slide 12: Change in Headline Operating Profit Margin YoY
CHANGE IN HEADLINE OPERATING PROFIT MARGIN YOY • Headline operating profit margin: 8.2%, decline driven by negative operating Change in costs leverage and higher severance costs YOY £261m £(59)m £89m £1m £47m £339m • 20 bps margin dilution from FGS Global disposal and 20 bps from FX 11.5% • Staff co
Slide 13: Restructuring Costs
RESTRUCTURING COSTS 1 HALF YEAR TO 30 JUNE 2025 £M 2024 £M Δ IT and other transformation costs 32 55 (23) Structural restructuring costs - 76 (76) Restructuring and transformation costs 32 131 (99) Property-related restructuring costs 13 22 (9) Total restructuring costs2 45 153 (108) 1 Excludes ongo
Slide 14: Unaudited Headline IFRS Income Statement
1 UNAUDITED HEADLINE IFRS INCOME STATEMENT HALF YEAR TO 30 JUNE 2025 £M 2024 £M Δ Δ LFL 2 • Reported revenue less pass-through costs declined 10.2%, comprising 4.3% Revenue 6,663 7,227 (7.8)% (2.4)% LFL, a 3.5pt drag from M&A (mostly FGS Revenue less pass-through costs 5,026 5,599 (10.2)% (4.3)% Glo
Slide 15: Reconciliation of Headline Operating Profit to Reported Operating Profit
RECONCILIATION OF HEADLINE OPERATING PROFIT TO REPORTED OPERATING PROFIT 2025 2024 Δ HALF YEAR TO 3O JUNE £M £M £M • Goodwill impairment relates to Headline operating profit 412 646 (234) the impairment of goodwill associated with AKQA and Grey Goodwill impairment (116) - (116) Amortisation and impa
Slide 16: Adjusted Net Debt from June 2024 to June 2025
ADJUSTED NET DEBT FROM JUNE 2024 TO JUNE 2025 1 Adjusted operating cash flow £1,062m Adjusted free cash flow £311m 3,426 (104) 3,261 (425) (633) 1.74x 383 (118) (175) 1,237 June 2024 Adjusted Operating Working Capital Net dividends to Net interest and Net M&A and Dividends Buybacks, FX June 2025 Adj
Slide 17: Leverage Metrics
LEVERAGE METRICS • Adjusted net debt lower than June TO PERIOD END JUN ‘25 £M DEC ‘24 £M JUN ‘24 £M 2024 on both a spot and average basis, reflecting net sale proceeds Adjusted net debt1 (3,261) (1,742) (3,426) from FGS Global disposal • Leverage increased due to topline Available liquidity 2,991 4,
Slide 18: 2025 Guidance
2025 GUIDANCE Like-for-like revenue less pass-through costs growth of -3% to -5% Headline operating margin expected to decline 50 to 175 bps year-on-year (excluding the impact of FX) Other FY 2025 modelling assumptions: • Mergers and acquisitions will reduce revenue less pass-through costs by around
Slide 19: WPP Media
WPP MEDIA . Brian Lesser . .
Slide 20: WPP Media Video
WPP Media Show Reel WPP MEDIA VIDEO
Slide 21: WPP Media: Driving Change Through Five Priorities
WPP MEDIA: DRIVING CHANGE THROUGH FIVE PRIORITIES DATA & TECHNOLOGY 100% adoption of AI-powered Media Studio, moving from ID to AI PEOPLE Significant investment in technology, data science, and technical roles INNOVATION Introduction of new proprietary trading models COLLABORATION Integration across
Slide 22: WPP Media: Progress in H1 2025
WPP MEDIA: PROGRESS IN H1 2025 Centralised Leadership Established One Process Created a connected, brand To deliver frictionless campaign Accelerating secure data agnostic system with newly management collaboration and activation at reorganised leadership team any size, shape, or location (CFO, CPO,
Slide 23: Ingredients of Agency Partnership of the Future
INGREDIENTS OF AGENCY PARTNERSHIP OF THE FUTURE Modern + Creative + Production + Outcomes-Based Media + Commerce 23
Slide 24: Summary
SUMMARY Mark Read
Slide 25: WPP: Future Ready
WPP: FUTURE READY Simpler Transformed Stronger AI at the Company Offer Financials Core • Now 6 major • Creative • From £4bn net • Integrated networks Company of the debt at end of analogue and represent close to Year at Cannes 2018 to <£2bn at digital agencies 95% of WPP 2025 end 2024 • WPP Open • A
Slide 26: WPP: Our Platform for Growth
WPP: OUR PLATFORM FOR GROWTH Well Balanced Offer Leader in Unique Partner to Strong across AI and Global world-class Talent and Creative, technology Footprint Clients Culture Production and Media 26
Slide 27: Q&A
Q&A
Slide 28: Contacts and Further Resources
CONTACTS AND FURTHER RESOURCES THOMAS SINGLEHURST, CFA INVESTOR WEBSITE Group Investor Relations Director wpp.com/investors thomas.singlehurst@wpp.com Tel: +44 (0) 7876 431 922 CAPITAL MARKETS DAY 2024 Materials linked here ANTHONY HAMILTON Investor Relations Director INVESTOR WEBINARS anthony.hamil
Slide 29: Appendix
APPENDIX
Slide 30: New Business
NEW BUSINESS H1 ‘25 NEW CLIENT ASSIGNMENTS1,2 Shopper Marketing Media Media Media Media Media and Commerce Global UK China India India Global Media Influencer Creative Creative PR PR Australia Australia & New US US US Europe Zealand Creative Creative Creative Creative Creative Creative Global Global
Slide 31: Regions and Top Markets
REGIONS AND TOP 10 MARKETS LIKE-FOR-LIKE REVENUE LESS PASS-THROUGH COSTS GROWTH (Q2 ’25) Central & Eastern Europe +2.4% UK -6.5% North America -4.6% o/w US -4.5% o/w Canada -6.1% Western Continental Europe -6.5% o/w Germany -1.6% Asia Pacific -9.8% o/w France -3.6% o/w China -15.9% o/w Italy -11.1%
Slide 32: Sector Performance Analysis
SECTOR PERFORMANCE ANALYSIS 1 REVENUE LESS PASS-THROUGH COSTS HEADLINE OPERATING PROFIT HEADLINE OPERATING MARGIN2 YEAR TO 30 JUNE 2025 £M 2024 £M Δ REPORTED Δ LFL 2025 £M 2024 £M 2025 2024 Global Integrated Agencies 4,302 4,595 (6.4)% (4.5)% 352 551 8.2% 12.0% Public Relations 335 568 (41.0)% (7.2)
Slide 33: Regional Performance Analysis
REGIONAL PERFORMANCE ANALYSIS 1 REVENUE LESS PASS-THROUGH COSTS HEADLINE OPERATING PROFIT HEADLINE OPERATING MARGIN2 YEAR TO 30 JUNE 2025 £M 2024 £M Δ REPORTED Δ LFL 2025 £M 2024 £M 2025 2024 North America 1,966 2,207 (10.9)% (2.4)% 281 336 14.3% 15.2% UK 749 779 (3.9)% (6.0)% 47 78 6.3% 10.0% Weste
Slide 34: Exchange Rate Analysis
EXCHANGE RATE ANALYSIS STERLING IMPACT OF FX ON REVENUE LESS PASS-THROUGH COSTS GROWTH QUARTER TO 30 JUNE 2025 2024 STRONGER US$ 1.34 1.26 6.3% Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 € 1.18 1.17 0.9% Indian Rupee 114.32 105.30 8.6% (1.2%) Chinese Renminbi 9.66 9.14 5.7% (1.9%) Australian $ 2.08 1
Slide 35: Change in Headline Operating Profit Margin
CHANGE IN HEADLINE OPERATING PROFIT MARGIN¹ 2025 2024 Δ HALF YEAR TO 30 JUNE £M £M £M % Revenue less pass-through costs 5,026 5,599 (573) (10.2) Staff costs (3,685) (3,985) 300 7.5 o/w severance (86) (36) (50) (138.9) o/w staff incentives (59) (148) 89 60.1 Establishment (219) (242) 23 9.5 IT (340)
Slide 36: Bond Maturity Profile
BOND MATURITY PROFILE 30 JUNE 2025 (£m) Total Outstanding Bonds post swaps (£m) EUR GBP USD 700 Bonds (currency of issuance) £m ◼ 600 ◼ 500 ◼ ◼ 400 ◼ 300 ◼ ◼ 200 ◼ 100 ◼ ◼ 0 3.5% £3.8bn 6.4 Years £1.8bn Weighted average Outstanding Bond Weighted average Undrawn Revolving coupon rate Debt maturity Cr
Slide 37: Medium-Term Financial Framework
MEDIUM-TERM FINANCIAL FRAMEWORK 3%+ 16%-17% 85%+ 1.5-1.75x Like-for-like Headline Adjusted Operating Cash Average Net Debt / Revenue less pass- Operating Margin Flow Conversion Headline EBITDA1 through costs growth DISCIPLINED CAPITAL ALLOCATION Potential for M&A to accelerate growth by up to 1% p.a
Slide 38: Thank You
THANK YOU