Wpp Plc · LSE:WPP
Wpp — Merger or Acquisition (July 2019)
12 slides from Wpp's merger presentation, Jul 12, 2019
Slide 1: Kantar Transaction: A Partnership to Create the World's Leading Data Company
KANTAR TRANSACTION A PARTNERSHIP TO CREATE THE WORLD’S LEADING DATA COMPANY 12 JULY 2019 1
Slide 2: Important Information
IMPORTANT INFORMATION • This presentation has been prepared by WPP plc (WPP) in connection with the proposed investment by Bain Capital in Kantar (the Proposed Transaction). The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in perso
Slide 3: Transaction Highlights
TRANSACTION HIGHLIGHTS • Aims to develop Kantar into the world’s leading data insights and consulting company benefiting PARTNERSHIP FOR from combined expertise, revenue and client base of WPP and Bain Capital GROWTH • Aligns interests in next phase of Kantar’s evolution with Bain Capital owning 60%
Slide 4: Kantar: A Global Leader in Data and Research
: A GLOBAL LEADER IN DATA AND RESEARCH • Industry-leading data, research, consulting and analytics company. Focused on ‘human Three Complementary Business Models understanding at scale and speed’ With A Blue-Chip Client Base • Global reach with strong presence in 100 markets. Strong relationship wit
Slide 5: Unlocking Kantar's Growth Potential
UNLOCKING KANTAR’S GROWTH POTENTIAL Increasing Demand • Kantar’s strategy is built around investment in for Data-Driven talent, scaling of tech-based and analytic offers Decision Making and automation • Bain Capital brings unique carve-out experience, IT and operational expertise and significant cap
Slide 6: Kantar Will Remain a Key Component of WPP's Data Strategy
KANTAR WILL REMAIN A KEY COMPONENT OF WPP’S DATA STRATEGY WPP.DATA OPEN DATA PLATFORM TO SUPPORT DECISION MAKING WPP DATA CLIENT DATA ECOSYSTEM DATA CONSUMER DATA TRANSACTION & CUSTOMERS MEASUREMENT PARTNERS TRANSACTION DATA LOYALTY PROCESSORS SOCIAL & CONTENT SALES OPEN DATA PLATFORMS AUDIENCES CAM
Slide 7: WPP Data: How We Use It
WPP DATA: HOW WE USE IT INSIGHTS RELEVANCE IMPACT STRATEGY & AUDIENCE CUSTOMER CAMPAIGN PLANNING DATA DATA DATA DATA IDENTITY RESOLUTION AND CUSTOMER DATA MANAGEMENT WPP.DATA WPP DATA CLIENT DATA ECOSYSTEM DATA 7
Slide 8: Transaction Proceeds to WPP
TRANSACTION PROCEEDS TO WPP Non-controlling c.$0.4bn continuing interests & other investment for adjustments 40% of Kantar c.$4.0bn c.$3.7bn c.$0.25bn tax and other transaction costs c.$3.1bn Headline Enterprise Value Est. Equity Value at Est. Net Cash Proceeds completion on completion & 40% ownersh
Slide 9: Transaction Proceeds Strengthen Balance Sheet While Limiting Dilution
TRANSACTION PROCEEDS STRENGTHEN BALANCE SHEET WHILE LIMITING DILUTION NET PROCEEDS c.$3.1bn/c.£2.5bn DELEVERAGE RETURN TO SHAREHOLDERS c.£1.5bn c.£1bn Surplus capital to be returned to Expected 2020 average net debt to EBITDA1 shareholders following completion at low end of the 1.5x-1.75x target ran
Slide 10: Transaction Timetable
TRANSACTION TIMETABLE • “First Completion” (≥86% of Kantar and associated proceeds) expected in early 2020 • Subsequent completion(s) (and remainder of proceeds) within 12 months of announcement • Transaction completion conditional upon: – WPP shareholder vote (simple majority) – Antitrust clearance
Slide 11: Summary
SUMMARY ✓ Continues our progress on simplifying and repositioning WPP for growth ✓ Partnership with Bain Capital to create the world’s leading data company ✓ Strengthened balance sheet through material reduction in leverage to the low end of WPP’s target range ahead of plan ✓ c.$3.1bn/c.£2.5bn net c
Slide 12: Q&A
Q&A KANTAR BainCapital PRIVATE EQUITY