Wpp Plc · LSE:WPP
Wpp — H1 2012 Earnings Presentation
83 slides from Wpp's earnings presentation, August 2012
Slide 1: 2012 Interim Results
2012 Interim Results London 1
Slide 2: Contents
Contents 1 2012 Interim Results 2 Four Core Strategic Priorities 3 Key Objectives 4 Conclusions 5 Other Financial Information (Hard Copy only) 2
Slide 3: 2012 Interim Results
1 2012 Interim Results WPP
Slide 4: 2012 Interim Results
2012 Interim Results Billings up over 1% at £21.7 billion. Reportable revenues up 5.5%. On a constant currency basis, revenue up 6.8%. Like-for-like revenue up 3.6% and gross margin up 3.3%. Headline PBIT up 10.1% to £570m from £518m. Headline operating margin up 0.5 margin points to 11.5% a
Slide 5: Summary Headline Results at a Glance
2012 Interim Results Summary Headline¹ Results at a Glance Half Year to 30 June 2012 2011 Change % Revenue £m 4,972 4,713 5.5 Gross Margin £m 4,568 4,353 4.9 Operating Profit Margin: % of Revenue 11.5% 11.0% +0.5² % of Gross Margin 12.5% 11.9% +0.6² Diluted EPS 25.8p 22.8p 13.2 Dividend per share 8.
Slide 6: Unaudited Headline IFRS Income Statement
2012 Interim Results Unaudited Headline¹ IFRS Income Statement % Change Half Year to 30 June 2012 2011 Constant £m £m Reported Currency Revenue 4,972 4,713 5.5 6.8 Operating profit 542 493 10.0 13.3 Income from associates 28 25 10.7 16.4 PBIT 570 518 10.1 13.5 Net finance costs (103) (101) -2.3 0.7
Slide 7: Unaudited IFRS Income Statement
2012 Interim Results Unaudited IFRS Income Statement Constant Half Year to 30 June 2012 2011 Change Currency £m £m % % Revenue 4,972 4,713 5.5 6.8 Operating Profit pre-goodwill / intangibles 542 493 10.0 13.3 Goodwill / intangibles charges, net re- measurement gains (87) (62) -40.8 -40.3 Operating P
Slide 8: % Growth Versus Prior Year
2012 Interim Results % Growth Versus Prior Year Revenue Headline1 Headline1 PBIT EPS Like-for-like 3.6 n/a n/a Acquisitions2 3.2 n/a n/a Constant currency 6.8 13.5 18.6 Foreign exchange -1.3 -3.4 -5.4 Reportable sterling 5.5 10.1 13.2 Reportable US dollars3 2.9 7.1 10.0 Reportable euros4 11.5 17.8 2
Slide 9: Headline Performance Versus Target
2012 Interim Results Headline¹ Performance Versus Target Actual Target Like-for-like revenue growth 3.6% c. 4% a Operating margin improvement +0.5² +0.5² a Fully diluted EPS growth 13.2% 10%-15% a 1 Figures before goodwill and intangibles charges, investment gains/losses, share of exceptional gains/
Slide 10: Revenue by Discipline
2012 Interim Results Revenue by Discipline % Change 2012 2011 Reported Constant Like-for- £m £m Currency like Advertising, Media Investment 2,044 1,927 6.1 7.6 6.1 Management Consumer Insight 1,191 1,177 1.2 3.2 1.0 Public Relations & Public Affairs 459 430 6.8 6.3 1.0 Branding & Identity, Healthcar
Slide 11: Revenue by Region
2012 Interim Results Revenue by Region % Change 2012 2011 Reported Constant Like-for- £m £m Currency like North America 1,748 1,645 6.2 3.9 0.4 UK 591 560 5.6 5.6 3.0 Western Continental Europe 1,187 1,175 1.0 6.6 1.6 Asia Pacific, Latin America, Africa & Middle East, Central & Eastern 1,446 1,333 8
Slide 12: Headline PBIT and Margin by Discipline
2012 Interim Results Headline¹ PBIT and Margin by Discipline Headline PBIT Headline Margin 2012 2011 2012 2011 £m £m % % Advertising, Media Investment 283 236 13.9 12.3 Management Consumer Insight 84 89 7.0 7.5 Gross margin margins 9.7 10.3 Public Relations & Public Affairs 62 67 13.5 15.5 Branding
Slide 13: Headline PBIT and Margin by Region
2012 Interim Results Headline¹ PBIT and Margin by Region Headline PBIT Headline Margin 2012 2011 2012 2011 £m £m % % North America 239 209 13.7 12.7 UK 73 74 12.3 13.1 Western Continental Europe 95 94 8.0 8.0 Asia Pacific, Latin America, Africa & 163 141 11.2 10.6 Middle East, Central & Eastern Euro
Slide 14: Revenue Growth by Country
2012 Interim Results Revenue Growth by Country Revenue Growth1 Countries >20% Argentina 15% to 20% Brazil, Greater China², Mainland China³, South Korea 10% to 15% Belgium, Russia 5% to 10% Italy, India, Japan, Mexico, Singapore, South Africa Australia, Canada, Denmark, France, Germany, <5% Netherlan
Slide 15: Revenue Growth by Category
2012 Interim Results Revenue Growth by Category Revenue Growth1 Categories >15% Government 10% to 15% Automotive, Travel & Airline 5% to 10% Personal Care & Drugs, Electronics, Oil Computers, Drinks, Entertainment, Financial Services, Food, <5% Retail, Telecommunications 1 Like-for-like growth 15
Slide 16: Effects of Strength of Sterling
2012 Interim Results Effects of Strength of Sterling Currency movements accounted for a 1.2% decrease in revenue, largely reflecting the strength of the £ sterling against the euro, partly offset by weakness against the US$. Sterling stronger overall as follows: 2012 2011 Sterling (stronger)/wea
Slide 17: Trade Estimates of Major New Business Wins (1)
2012 Interim Results Trade Estimates of Major New Business Wins (1) WPP Agency Incumbent Account Office Billings($m) Team BofA OMC Bank of America Global 2,000 Equipe L’Oreal PUB L’Oreal Germany 727 MediaCom PUB Procter & Gamble Germany 225 Grey Ind RadioShack USA 200 MediaCom OMC Etihad Global 160
Slide 18: Trade Estimates of Major New Business Wins (2)
2012 Interim Results Trade Estimates of Major New Business Wins (2) WPP Agency Incumbent Account Office Billings($m) MEC HAV/AGS/Ind Lavazza Europe 66 Ogilvy HAV Vodafone Australia 52 Team News Ind News International UK 44 JWT Ind Premier Foods UK 44 MediaCom None American Eagle Global 35 Mindshare
Slide 19: Trade Estimates of Major New Business Losses
2012 Interim Results Trade Estimates of Major New Business Losses WPP Agency Winning Agency Account Office Billings($m) Mindshare PUB Sprint Global 1,000 Grey OMC Aquafresh/GSK Global 158 MEC OMC Specsavers UK 63 Ogilvy OMC Cisco Global 60 Ogilvy PUB Toblerone/Kraft USA 60 Ogilvy IND Ragu/Unilever U
Slide 20: Internal Estimates of Net New Business Wins
2012 Interim Results Internal Estimates of Net New Business Wins ($m) Creative Media Total Advertising 949 2,403 3,352 Other Businesses 608 - 608 Total First Half 2012 1,557 2,403 3,960 Total First Half 2011 1,028 894 1,922 20
Slide 21: Major New Business Wins/Losses Since July
2012 Interim Results Trade Estimates of Major New Business Wins/Losses Since 1 July WPP Agency Incumbent Account Office Billings($m) MEC IPG/HAV/AGS/MediaCom SAB Miller Europe 125 WINS Ogilvy Ind Nascar USA 50 WPP Agency Winning Agency Account Office Billings($m) LOSSES Mindshare OMC Farmer’s USA 16
Slide 22: Cash Flow
2012 Interim Results Cash Flow £m 2012 2011 Operating Profit 455 431 Non-cash compensation 44 38 Depreciation & amortisation charges 112 102 Amortisation of acquired intangibles and impairment 82 83 Net interest paid & similar charges (107) (107) Tax paid (143) (126) Net cash generation 443 421 22
Slide 23: Uses of Cash Flow
2012 Interim Results Uses of Cash Flow £m 2012 2011 Net cash generation 443 421 Capital expenditure (116) (107) Acquisition payments (140) (229) - Net initial payments¹ (90) (175) - Earnout payments / loan note redemptions (50) (54) Share repurchases (66) (98) Other 48 3 Net cash inflow / (outflow)
Slide 24: Net Debt – June 2012
2012 Interim Results Net Debt – 30 June 2012 % £m 2012 2011 Variance YTD average net debt on constant currency basis (2,898) (2,591) -12% YTD average net debt on reportable basis (2,898) (2,558) -13% Net debt at 30 June (2,861) (2,879) +1% YTD average net debt up to 9 August 2012 on a constant (2,99
Slide 25: Historic Average Net Debt/Headline EBITDA
2012 Interim Results Historic Average Net Debt/Headline EBITDA £m Average net debt/headline EBITDA 4,000 3.0 Average net debt EBITDA 3,500 Average net debt/headline EBITDA 2.5 3,000 2.0 2,500 2,000 1.5 1,500 1.0 1,000 0.5 500 0 0.0 2005 2006 2007 2008 2009 2010 2011 Jun-12 ¹ ¹ Rolling annual average
Slide 26: Uses of Free Cash Flow
2012 Interim Results Uses of Free Cash Flow Category Target H1 2012 H1 2011 FY 2011 New acquisitions¹ £300m+ £90m² £175m² £381m² Share purchases Minimum 1% 0.6% 1.0% 2.1% EPS growth + 500 Dividend increase 18% 25% 38% basis points Pay-out ratio 40% 34% 33% 36% Headroom: Undrawn facilities & - £1.9bn
Slide 27: Earnings and EPS
2012 Interim Results £m Earnings and EPS¹ Pence/ share 1000 80p Earnings EPS 900 67.7p 70p 19% 800 56.7p 60p 700 21% 28% -20% 55.5p 50p 600 11% 45.8p 44.4p 42.0p 500 40p 400 25.8p 30p 13% 22.8p 300 20p 200 10p 100 0 0p 2006 2007 2008 2009 2010 2011 2011 H1 2012 H1 ¹ Diluted Headline Earnings and Dil
Slide 28: Four Core Strategic Priorities
2 Four Core Strategic Priorities 28
Slide 29: Market Environment
Market Environment New Markets, New Media, Consumer Insight and “Horizontality” Macro Micro Eurozone debt uncertainties holding Client comments not indicating lower back growth across Europe and spend other than in some specific elsewhere sectors Stronger relative growth in Asia, Latin Redir
Slide 30: Four Core Strategic Priorities
Four Core Strategic Priorities New Markets, New Media, Consumer Insight and “Horizontality” Faster growing markets now to be over one third of total Group (35% - 40%). New media now to be over one third of total Group (35% - 40%). Consumer Insight and quantative disciplines to be over one half
Slide 31: New Markets, New Media and Consumer Insight – Today
New Markets, New Media and Consumer Insight Today 1: New Markets 2: New Media 3: Quantitative Today 29% Today 32%1 Today 48% UK & Western Continental Europe Traditional Media North America UK & Western Continental Europe Traditional Media Qualitative Asia Pacific, Latin America, Africa & Middle East
Slide 32: New Markets, New Media, Consumer Insight – Tomorrow
New Markets, New Media, Consumer Insight Tomorrow 1: New Markets 2: New Media 3: Quantitative Target 35-40% Target 35-40% Target 50% UK & Western Continental Europe Traditional Media North America UK & Western Continental Europe Traditional Media Qualitative Asia Pacific, Latin America, Africa & Mid
Slide 33: New Markets: Back to the Future
New Markets Back to the Future 60 50 % Share of Global GDP Share of Global GNP 1870 - 2025 40 30 India China 20 10 0 1820 1870 1913 1950 1973 1998 2011 2025 1. Prof Angus Maddison - The World Economy 1870 - 1998: OECD 2. Conference Board Global Economic Outlook 2011 - 2025: January 2012 33
Slide 34: Revenues in Faster Growing Markets 2004-2011
New Markets Revenues in Faster Growing Markets 2004-2011 5.0 4.5 4.0 3.5 3.0 Revenue ($'bn) 2.5 2.0 1.5 1.0 0.5 0.0 2004 2005 2006 2007 2008 2009 2010 2011 WPP OMC PUB IPG 1. WPP reportable US$’s per WPP results and peer $ revenues as shown in annual results presentations 2. Peer data sourced from a
Slide 35: WPP's Performance Strong in BRIC Markets
New Markets WPP’s Performance Strong in BRIC Markets Revenue $'m 1,200 11 year CAGR 18% 1,000 Associates @ 100% 800 First half 2011 11 year CAGR 15% 600 11 year CAGR 13% 400 11 year CAGR 53% 200 0 2000 2011 2012 H1 2000 2011 2012 H1 2000 2011 2012 H1 2000 2011 2012 H1 Greater China (including Brazil
Slide 36: WPP's Performance Strong in Other Faster Growing Markets
New Markets WPP’s Performance Strong in Other Faster Growing Markets Revenue $'m 600 11 year CAGR 18% 500 Associates @ 100% 400 11 year CAGR 18% First half 2011 300 200 100 11 year CAGR 31% 11 year CAGR 31% 0 2000 2011 2012 H1 2000 2011 2012 H1 2000 2011 2012 H1 2000 2011 2012 H1 Middle East Central
Slide 37: WPP in Faster Growing Markets
New Markets WPP in Faster Growing Markets Region Market Billings1 % Share1 Rank1 12 month2 People2 $bn Rev $bn ‘000 Asia Pacific: Greater China3 6.7 33% 1 1.1 13 India 2.4 42% 1 0.4 12 Thailand 0.9 40% 1 0.1 2 LatAm: Brazil4 n/a n/a 1 0.7 5 Mexico 0.6 22% 3 0.2 3 Argentina 0.4 25% 2 0.1 2 Other: Afr
Slide 38: Media Billings by Geography
New Markets Media Billings by Geography Worldwide Ranking by Group as % of the Six Groups % 45 WPP Omnicom Publicis IPG Aegis Havas 40 35 30 25 20 15 10 5 0 Americas Europe Asia Pacific Worldwide Source: RECMA July 2012 billings report, based on 2011 data 38
Slide 39: Media Billings Ranking Adjusted for Aegis Acquisition
New Markets Media Billings by Geography Worldwide Ranking adjusted for Acquisition of Aegis by Dentsu 100 90 WPP 80 Dentsu/Aegis now rank 3rd OMC 70 Billings $ ‘billion Publicis 60 IPG 50 Aegis/Dentsu 40 Havas 30 20 10 0 Source: RECMA July 2012 billings report, based on 2011 data and Dentsu Financia
Slide 40: Growth in Digital Advertising Expenditure
New Media Little Slowdown Predicted in Growth of Digital Advertising Expenditure 194 Worldwide digital advertising spend CAGR 176 (US$ billions) 2006-2011: 18% 2011-2017: 15% 154 135 115 100 87 75 64 59 49 37 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: GroupM August 2012 40
Slide 41: WPP's Digital Strategy
New Media WPP’s Digital Strategy 1. Digital • Invest in digital in all of our businesses through training, Everywhere recruitment, acquisitions, etc. 2. Specialist • Develop new services beyond traditional advertising, e.g, Digital web development, DSPs, mobile, social, eCommerce and Expertise eShop
Slide 42: New Services offer Greater Revenue Potential
New Media New Services offer Greater Revenue Potential 100% 80% Share of Client Expenditure 40-45% 60% 88% 80-85% 40% 55-60% 20% 12% 15-20% 0% Traditional Media Search/Display Mobile/Social Media Media Share Agency Share Source: Exane BNP Paribas April 2010 42
Slide 43: Digital Revenue Share Continues to Increase
New Media Revenue Share Continues to Increase WPP Share of Digital Revenue 35%- 40% 31%¹ 30% 21% 12% 2000 2006 2011 2012 H1 Target in 5 years 1 32% including AKQA PF 43
Slide 44: Two Major Global Networks – Strong Specialist Offer
New Media Two Major Global Networks – Supported by Strong Specialist Offer Revenue $’m (F) 950 1 (F) 1 900 1 300 1,2 300 (F) 1 230 1 150 (F) 1 150 ¹ In WPP Direct, Digital and Interactive Networks (F) Forrester Digital Leader ² In GroupM Digital 44
Slide 45: Dominant Position in BRIC Markets
New Media Russia Dominant position in BRIC Markets Revenue $50m People ~600 India China Brazil Revenue $50m Revenue $200m Revenue $200m People ~1,100 People ~2,400 People ~1,400 45
Slide 46: XAXIS – A Successful First Year
New Media XAXIS – A Successful First Year 150 employees in 16 markets 318 billion impressions annually 850+ clients 4,000+ campaigns since inception 77% profit growth year over year 4 channels: display, video, mobile, social 1 technology platform, 50 integrated partnerships 1 Vision:
Slide 47: AKQA – Overview
New Media AKQA – Overview The world’s leading independent and most awarded digital agency: • 1,160 employees. • Offices: San Francisco, Washington DC, London, New York, Paris, Amsterdam, Berlin and Shanghai. • Led by founders Tom Bedecarre (Chairman) and Ajaz Ahmed (Founder and CEO) . • Majority o
Slide 48: Consumer Insights and Quantitative Disciplines
Consumer Insights and Quantitative Disciplines The Data Explosion 48
Slide 49: WPP Advantage
Consumer Insights and Quantitative Disciplines WPP Advantage Marketing becoming more data driven. Clients need simplified better utilisation of existing data and help in managing explosion of new data. Digital campaigns driven by data analytics and feedback to shape new activity. Ability to
Slide 50: Horizontality
Horizontality 162,000 people in 3,000 offices in 110 countries1 1 Including associates 50
Slide 51: 30+ Account Teams
Horizontality 30+ Account Teams – Over 35,000 WPP employees work on these clients 51
Slide 52: Current Country Managers
Horizontality Current Country Managers – People, Clients, Acquisitions Portugal Italy Greater ME & N Africa India China South Korea Andina Vietnam Indonesia Australia New Zealand 52
Slide 53: Horizontality
Horizontality Ensure our people work across our businesses and geographies to deliver best resources to clients. Deliver specialist skills (eg digital, shopper, analytics, sustainability, retailing, internal communications and “media and entertainment”) to clients irrespective of lead agency.
Slide 54: Digital and Faster Growing Markets
Digital and Faster Growing Markets Two Key Long-Term Growth Drivers Overall 53% of 2012 H1 Actual Revenues Faster growing markets Digital 29% 31% of revenue of revenue¹ Digital in faster growing markets 7% of revenue 1 32% including AKQA with minimal impact on overlap implying 54% combined 54
Slide 55: Key Objectives
3 Key Objectives WPP
Slide 56: We Continue to Focus on Our Key Objectives
Key Objectives 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. Emphasising revenue growth mo
Slide 57: Improving Operating Margins
Key Objectives PBIT1 Improving Operating Margins PBIT1 margin £’m % 1,600 20% Full Year Objectives: 19% 1,400 1,429 Long-term 18.3% 18% 2013 15.3% 1,200 1,229 2012 14.8% 17% 1,118 1,000 1,017 16% 928 800 859 15.0% 15% 15.0% 14.5% 14.3% 14% 600 14.3%² 11.5% 11.0% 13.2% 570 518 13% 400 12% 11.7% 200 1
Slide 58: Operational Effectiveness Programmes
Key Objectives Improving Operating Margins Operational Effectiveness Programmes Shared Service Centres to generate scale and improve process efficiency. Offshoring of certain tasks from high cost markets with outsourcing where appropriate to take advantage of scale and skills of major providers.
Slide 59: Increasing Flexibility in The Cost Base
Key Objectives Increasing Flexibility in The Cost Base Change in Variable Costs % 8 7.2 6.9 7 6.3 6.4 6 4.9 5 4 3 2 1 0 2008 H1 2009 H1 2010 H1 2011 H1 2012 H1 Variable Staff Costs as % of Revenue 59
Slide 60: Using Free Cash Flow to Enhance Share Owner Value
Key Objectives Using Free Cash Flow to Enhance Share Owner Value Distributions to Share Owners¹ £’m 600 6.6% Buy-backs Dividends declared 500 Dividends paid 4.5% 400 4.8% 415 300 182 4.7% 2.8% 3.0% 2.6% 258 66 112 3.4% 46 200 9 98 100 201 218 213 190 162 147 119 139 0 2006 2007 2008 2009 2010 2011 2
Slide 61: Dividend Pay-out Ratio
Key Objectives Using Free Cash Flow for Dividend Pay-out Ratio 80p 40% 70p 35% 60p 30% 50p 25% 40p 20% 30p 15% 20p 10% 10p 5% 0p 0% 2007 2008 2009 2010 2011 2011 H1 2012 H1 Headline Diluted EPS Dividend Declared/ Share Dividend Payout Ratio Dividend Payout Ratio (incl. Exceptional Tax Credit) Headli
Slide 62: Using Free Cash Flow for Acquisitions
Key Objectives Using Free Cash Flow for Acquisitions Significant pipeline of reasonably priced small and medium-sized potential acquisitions. Continue to focus on the faster growing geographical areas and marketing services, particularly direct, digital & interactive and consumer insight. So f
Slide 63: Acquisitions and Investments – Year to Date
Key Objectives Using Free Cash Flow for Acquisitions and Investments – Year to Date 41?29! Media (Turkey) ACE METRIX (USA)¹,² Faster Growing Acceleration (S Africa, UK, USA)³ Activeark Oy (Finland)³ Quantitative & Markets Alchemedia (S Korea)³ AKQA (Worldwide)³ Digital BARROWS (S AFRICA) Corda (USA)
Slide 64: Using Free Cash Flow for Acquisitions: Post-Lehman
Key Objectives Using Free Cash Flow for Acquisitions Majority stake acquired in 56 companies1 post-Lehman, 2009 - 2011 Faster Growing Quantitative & Markets Digital Client/Creative 12 17 17 10 Total revenue in 2012F: $954m2 Total consideration paid: $873m 1 Includes majority acquisitions and step-up
Slide 65: Acquisitions: Strong Financial Performance and Return
Key Objectives Using Free Cash Flow for Acquisitions Strong Financial Performance and Return Organic revenue growth (2012F) Operating margin contribution (2012F) Return on Capital Employed 27% 27% 27% 24% 22% 21% 22% 20% 22% 19% 18% 19% 18% 17% 17% 17% 17% 16% 13% 13% 12% 12% 12% 7% 7% 7% 2% 2% 2% 2
Slide 66: Other Acquisitions – Year to Date
Key Objectives Using Free Cash Flow for Other Acquisitions – Year to Date Advertising Colmar Brunton (New Zealand)¹ SIBONEY (USA) Ubachs Wisbrun (Netherlands)¹ Public Relations & Public Affairs ABC (Denmark) ¹,² Ascentum (Canada)² CROWDVERB (USA) FIRST MOVIES (UK) i&e (France)² OGILVY IMPACT (AUSTRA
Slide 67: Improving the Creative Capabilities and Reputation
Key Objectives Improving the Creative Capabilities and Reputation of all Our Businesses By placing greater emphasis on recruitment. By recognising creative success tangibly and intangibly. By acquiring highly regarded creative businesses. By placing greater emphasis on awards. 1st as a Gro
Slide 68: Improving the Creative Reputation of all our Businesses
Key Objectives Improving the Creative Reputation of all our Businesses Network Points1 1 Ogilvy & Mather 564 2 BBDO 539 3 DDB 516 4 Y&R 408 5 Leo Burnett 340 6 JWT 297 7 Publicis 277 8 Saatchi & Saatchi 249 9 TBWA 226 10 Wieden & Kennedy 220 11 DraftFCB 173 12 Grey 163 1 WPP calculation based on off
Slide 69: Conclusions
4 Conclusions WPP
Slide 70: 2012 H1 Summary
Conclusions 2012 H1 Summary Good like-for-like revenue growth of 3.6% with softer Q2. Double digit growth in faster growing markets and strong performance in Advertising and Media Investment Management, especially Media Investment Management. Group margin up 0.5 margin points on a reported bas
Slide 71: Outlook
Conclusions Outlook The Q2 revised forecast indicates organic growth of ca 3.5% with stronger growth in the faster growing markets and slower growth in the mature markets of North America and Western Continental Europe. Consumer Insight revenue and gross margin growth projected to improve modest
Slide 72: Conclusions
Conclusions First half and particularly the Q2 results, show the Group is benefiting from geographic and functional trends as mature markets slow. The investment behind the four core strategic priorities will enable the Group to optimise client campaigns and build unique advantage and differenti
Slide 73: Other Financial Information (Hard Copy only)
5 Other Financial Information (Hard Copy only) 73
Slide 74: Net Finance Costs
2012 Interim Results Net Finance Costs £m 2012 2011 B/(W) Interest on net debt 93 91 (2) IAS 19 (Pensions) 6 6 - IAS 32 (Convertibles) 4 4 - Sub-total 10 10 - Headline finance costs 103 101 (2) IAS 39 (Financial Instruments) 22 21 (1) Net finance costs 125 122 (3) 74
Slide 75: Debt Maturity Profile
2012 Interim Results Debt Maturity Profile £m Total Total As at 30 June 2012 2012 2013 2014 2015 2016 2017 2018+ Credit Drawn US bond $812m (4.75% ’21) 518 518 518 £ bonds £200m (6.375% ’20) 200 200 200 £ bonds £400m (6% ’17) 400 400 400 Bank revolver¹ ($1,050m and £375m) 1,045 86 86 Eurobonds €750m
Slide 76: Ordinary Shares - Basic
2012 Interim Results Ordinary Shares - Basic June June 2012 2011 No. of Shares (million) Actual Actual 1 January 1,266 1,264 Share buybacks (6) (2) Option exercise 7 4 30 June 1,267 1,266 -0.1% Weighted Average 1,268 1,266 ESOP, Treasury & Other (25) (22) Average Basic 1,243 1,244 0.1% 76
Slide 77: Ordinary Shares – Diluted
2012 Interim Results Ordinary Shares – Diluted June June 2012 2011 No. of Shares (million) Actual Actual Average Basic 1,243 1,244 Share Option Dilution 5 6 Other Potentially Issuable Shares 22 17 Sub-Total 1,270 1,267 -0.2% Convertibles: £450m 5.75% bond 77 77 Fully Diluted Shares 1,347 1,344 -0.2%
Slide 78: WPP Clear No. 1 in Brazil
Key Priorities, Objectives and Strategy WPP Clear No. 1 in Brazil¹ RECMA does not cover Brazil, IBOPE measures media spend with the “IBOPE Rate Card Monitor”. Agency R$’bn Rank Y&R 6.2 1 Ogilvy/141 SoHo 3.5 2 WPP PUB IPG OMC JWT 3.0 3 Almap/BBDO 2.8 4 W/McCann 2.3 5 Euro RSCG 2.2 6 BorghiEhr/Lowe
Slide 79: 2011 Revenue by Geography
Key Priorities, Objectives and Strategy 2011 Revenue by Geography $16.1bn $13.9bn 4.8 Asia Pacific, Latin America, Africa & Middle East, CEE 2.4 Western Europe N America 4.2 $8.2bn 5.9 $7.0bn 1.7 $6.1bn 1.4 2.6 1.3 4.4 7.3 5.4 $2.1bn 3.9 4.3 0.2 1.0 1.2 0.7 0.7 WPP Omnicom Publicis IPG Aegis/Dentsu
Slide 80: 2011 Revenue by Discipline
Key Priorities, Objectives and Strategy 2011 Revenue by Discipline $16.1 bn $13.9bn 3.9 Consumer Insight Marketing Services Advertising Media 7.5 4 5.5 $8.2bn $7.0bn $6.1bn 4.1 0.4 2.9 3.7 4.7 2.5 2.7 5.7 $2.1bn 0.6 3.0 1.7 1.6 0.9 1.4 0.6 WPP Omnicom Publicis IPG Aegis/Dentsu Havas Source: 1 WPP re
Slide 81: Digital In All Our Businesses
Digital In All Our Businesses Global Scale and Quality Digital Revenues ($billion – 2011 Full Year) 4.8 2.5 2.5 1.1 0.4 0.4 WPP Omnicom Publicis IPG Havas Aegis ¹ Peer digital revenue $bn according to Ad Age %’s applied to FY US$ revenue. 81
Slide 82: WPP Position in Direct, Digital and Interactive
Key Priorities, Objectives & Strategy WPP Position in Direct, Digital and Interactive First Half 2012 c$’m Direct, Digital and Interactive Networks 1,337 (OgilvyOne, Wunderman, G2, VML and WPP Digital) % of Group revenues 16.9% Specialist Direct, Digital and Interactive resources: - Consumer Insight
Slide 83: 2012 Interim Results London
2012 Interim Results London 83