SHAREHOLDER PRESENTATION
Roberto Quarta, Chairman Mark Read, CEO
10.6.2020
SAFE HARBOUR STATEMENT
In order to utilise the 'safe harbour' provisions of the United States Private Securities Litigation Reform Act of 1995 (the 'PSLRA'), WPP plc is providing the following cautionary statement. This presentation contains certain forward-looking statements - that is, statements related to future, not past events and circumstances, and including statements relating to the potential impact of the COVID-19 outbreak - which may relate to one or more of the financial conditions, results of operations and businesses of WPP plc and certain of the plans and objectives of WPP with respect to these items. These statements are generally, but not always, identified by the use of words such as 'will', 'expects', 'is expected to', 'aims', 'should', 'may', 'objective', 'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we see' or similar expressions.
Actual results may differ from those expressed in such statements, depending on a variety of factors including the risk factors set forth in our most recent Annual Report and Form 20-F under "Risk factors" and in any of our more recent public reports. Nothing in this presentation is intended as a forecast, nor should it be taken as such.
Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.wpp.com, or can be obtained from the SEC by calling 1-800-SEC- 0330 or on its website at www.sec.gov.
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ROBERTO QUARTA
Chairman
WPP 3
WPP BOARD AND COMPANY SECRETARY
Roberto Quarta | Mark Read | John Rogers | Nicole Seligman | |
Chairman | CEO | CFO | SID | |
Jacques Aigrain | Sandrine Dufour | Tarek Farahat | Cindy Rose OBE |
Sally Susman | Keith Weed | Jasmine Whitbread | Balbir Kelly-Bisla |
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RESULTS OF AGM PROXY VOTES
RESOLUTION | FOR | AGAINST | ABSTENTIONS |
1 | 961,338,718 | 22,771,549 | 4,911,813 |
2 | 874,307,073 | 89,439,663 | 25,275,343 |
3 | 884,923,340 | 90,095,862 | 14,002,877 |
4 | 961,156,161 | 1,767,191 | 26,098,729 |
5 | 955,740,875 | 7,160,489 | 26,120,716 |
6 | 966,622,364 | 560,283 | 21,839,434 |
7 | 964,635,669 | 2,518,170 | 21,868,242 |
8 | 953,512,253 | 35,210,784 | 299,043 |
9 | 943,631,024 | 23,523,496 | 21,867,561 |
10 | 960,924,606 | 6,226,538 | 21,870,937 |
RESOLUTION | FOR | AGAINST | ABSTENTIONS |
11 | 966,534,230 | 22,175,518 | 312,333 |
12 | 961,069,295 | 6,086,762 | 21,866,024 |
13 | 937,788,740 | 50,918,675 | 314,666 |
14 | 962,175,167 | 634,837 | 26,212,077 |
15 | 939,600,674 | 27,622,756 | 21,798,649 |
16 | 951,539,792 | 15,692,944 | 21,789,344 |
17 | 894,187,511 | 72,913,434 | 21,921,136 |
18 | 954,617,513 | 12,090,003 | 22,314,563 |
19 | 906,763,405 | 59,966,230 | 22,292,446 |
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MARK READ
CEO
WPP 6
2019: SOLID FOUNDATIONS BUILT
STRATEGIC
- Significant progress on simplification: fewer, stronger agency brands
- Investments in technology, HR, client and new business teams for growth
- Improved client performance with good retention and important wins
- Successful completion of Kantar transaction
FINANCIAL
- Delivered organic growth and margin guidance set in December 2018
- Organic growth improvement through the year: H1-2.5%, H2 -0.7%
- Strong working capital performance
- Leverage reduced significantly:year-end net debt £1.5B
• Renewed purpose and strengthened culture
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2019 PROGRESS ON KEY METRICS
SIMPLER WPP
RETURN TO GROWTH
MARGIN
LEVERAGE
- Met all targets for closures, disposals and mergers
- Delivered December 2018 guidance
- Improved in H2 over H1
- Reinvesting for growth
- Slower progress on shared services
- Leverage at low end of target a year ahead of plan
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BUILDING CULTURE THROUGH PURPOSE
Recognition of our commitment and progress
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COVID-19: OUR PRIORITIES
PEOPLE | CLIENTS | COMMUNITIES |
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PEOPLE: EFFECTIVE RESPONSE TO "LOCKDOWN"
WORKING REMOTELY REGULAR SUPPORT
PROTECT JOBS
WHEREVER POSSIBLE
• WPP Town Halls | • Over 3,000 execs | |
by market | on salary sacrifice | |
• CEO and team | • Internal jobs | |
communications | market | |
• WPP TV | • Upping training | |
• Mental wellbeing | and development | |
with our partners | ||
95%of our people | a particular focus | |
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CLIENTS: RAPID ACTION TO RE-PLAN AND COMMUNICATE
RELEVANT COMMUNICATIONS
84%of consumers will judge
companies by how they respond
RE-PLANNING COMMUNICATIONS
- Responding quickly, working faster
- Re-planningmedia to higher ROI channels
- Production ongoing with CGI, stock, animation
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CLIENTS: HUGE RANGE OF WORK
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COMMUNITIES: STRONGLY SUPPORTING GOVERNMENT AND NGO COMMUNICATION
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FINANCIAL RESILIENCE: KEY ACTIONS
1Variable cost savings - £700-800min-year
- Exec salary sacrifice
- Suspension of dividend and share buyback
4Tight capex and working capital management
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SHORT TERM FOCUS, INVEST FOR THE LONG TERM
MANAGE OUR IMMEDIATE RESPONSE
INVEST FASTER FOR THE FUTURE
Creativity and
1People
1
Technology
2 | Clients |
Agility and
2
Simplicity
3 | Communities |
3
Operational
effectiveness
4Financial resilience
4
Culture
and Purpose
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ROBERTO QUARTA
Chairman
WPP
Q&A
THANK YOU