1. business and industrial
2. company
3. merger and acquisition

Trading Statement for the
Third Quarter 2014
Contents
1
Third Quarter 2014
Hard Copy only:
2
3
Other Financial Information
28 Year History
2
1
Third Quarter 2014
3
Third Quarter 2014
Highlights
 Revenue growth of 3.1%, with like-for-like growth of 7.6%, 3.0% growth from
acquisitions and -7.5% from currency.
 Net sales growth of -1.2%, with like-for-like growth of 3.0%, 3.1% growth from
acquisitions and -7.3% from currency.
 Profits and net sales margin in the first nine months ahead of last year and ahead
of target.
 Constant currency revenue and net sales growth in all regions and business
sectors.
 Net new business of £3.592bn in first nine months maintaining leadership in new
business league tables, as for the last two and three quarter years.
4
Third Quarter 2014
Summary – Revenue and Net Sales Growth
Revenue
Net Sales
% Growth
Q3
YTD
Q3
YTD
Like-for-like
7.6
8.3
3.0
3.8
Acquisitions
3.0
2.7
3.1
2.5
Constant currency
10.6
11.0
6.1
6.3
Foreign exchange
-7.5
-8.2
-7.3
-8.0
3.1
2.8
-1.2
-1.7
Reportable US dollars¹
10.8
11.1
6.2
6.3
Reportable euros²
10.9
8.0
6.3
3.3
Reportable sterling
1 Translated
2 Translated
into US$, using among other currencies, average exchange rates of US$/£ for Q3 2014 of $1.67 (Q3 2013: $1.55)
into Euros, using among other currencies, average exchange rates of €/£ for Q3 2014 of €1.26 (Q3 2013: €1.17)
5
Third Quarter 2014
Revenue and Net Sales by Sector: Third Quarter
Revenue¹
Net Sales¹
% Change
% Change
2014
£m
Reported
Constant
Currency
Like-forlike
2014
£m
Reported
Constant
Currency
Like-forlike
Advertising, Media Investment
Management
1,214
11.7
20.1
17.1
1,064
0.6
8.3
5.5
Data Investment Management
588
-4.7
2.2
0.5
424
-4.4
2.4
1.2
Public Relations & Public Affairs
214
-6.4
0.3
0.1
212
-6.4
0.3
0.1
Branding & Identity, Healthcare
and Specialist Communications
747
-0.1
6.8
2.0
718
-0.2
6.8
1.4
2,763
3.1
10.6
7.6
2,418
-1.2
6.1
3.0
Total
¹ Disclosure of revenue and net sales figures necessary to more accurately show underlying trends, given the significant increase in both on-line
media buying as principal, together with pass-through costs for data investment management
6
Third Quarter 2014
Revenue and Net Sales by Sector: Year to Date
Revenue¹
Net Sales¹
% Change
% Change
2014
£m
Reported
Constant
Currency
Like-forlike
2014
£m
Reported
Constant
Currency
Like-forlike
Advertising, Media Investment
Management
3,604
9.9
19.3
16.7
3,182
-0.6
8.0
5.8
Data Investment Management
1,765
-4.9
2.4
1.4
1,267
-5.7
1.5
1.2
Public Relations & Public Affairs
650
-5.4
1.9
1.6
642
-5.2
2.2
1.8
Branding & Identity, Healthcare
and Specialist Communications
2,213
1.2
8.8
3.9
2,119
0.5
8.2
2.9
Total
8,232
2.8
11.0
8.3
7,210
-1.7
6.3
3.8
¹ Disclosure of revenue and net sales figures necessary to more accurately show underlying trends, given the significant increase in both on-line
media buying as principal, together with pass-through costs for data investment management
7
Third Quarter 2014
Advertising, Media Investment Management
 Strongest performing sector with like-for-like revenue growth over 17% and net sales
growth 5.5% in third quarter.
 Strong growth in Ogilvy & Mather and Grey in the third quarter, and geographically
especially in Asia Pacific, Latin America and Africa.
 Media Investment Management like-for-like revenues up very strong double-digits and
net sales up double-digits globally in third quarter, with strong double-digit net sales
growth in North America, UK and Africa.
 Acquisitions in advertising of Blinks (search engine marketing) in Brazil, EXP
(experiential marketing) in Africa, MCS (creative and research) in Mongolia, Teein (social
media) in China and Try (user experience) in Brazil.
 Acquisitions and investments in Media Investment Management in digital media,
AppNexus (advertising technology) in USA, Haworth (media planning and buying) in
USA and Keyade (digital search marketing) in France.
8
Third Quarter 2014
Data Investment Management
 Data Investment Management like-for-like revenue up 0.5% and net sales up 1.2%,
in line with first half growth.
 In the third quarter, revenue growth in all regions except North America, with
particularly strong growth in Latin America and Africa & Middle East.
 TNS, Kantar Media, Kantar Worldpanel, Kantar Health and Kantar Indian Market
Research Bureau performed strongly.
 Acquisitions of Evidencias in Brazil, Guardian Digital Agency in UK, InsightExpress
in USA and an investment in Zappistore in UK.
9
Third Quarter 2014
Public Relations & Public Affairs
 Public Relations and Public Affairs like-for-like revenue and net sales up 0.1%,
which was lower than first half growth.
 All regions, except Western Continental Europe, grew revenue and net sales in the
third quarter, with Belgium, Finland, Germany and Norway challenging.
 Particularly strong growth in content development in the USA through SJR.
10
Third Quarter 2014
Branding & Identity, Healthcare and Specialist Communications
 Constant currency revenue and net sales grew strongly at 6.8%, with like-for-like
revenue growth 2.0% and net sales growth 1.4%.
 In the third quarter, particularly strong growth in the Group’s Direct, Digital and
Interactive businesses, but weakness in Branding & Identity and Healthcare.
 Acquisition of Epigram (branding & identity) in Brazil.
11
Third Quarter 2014
Direct, Digital and Interactive
 For the first nine months of 2014, Direct, Digital and Interactive revenues were
$4.9bn or almost 36% of total revenues (2013: $4.3bn and 35% respectively), up
14.3% in constant currency and up almost 11% like-for-like.
 The number of people working in the Group in this practice area is over 44,000 or
36% of headcount.
 Recent acquisitions and investments include Applogix (e-commerce technology) in
South Africa, Double Encore (mobile apps development) in USA, Indigenous Media
(digital studio) in USA and Neoworks (implementation of e-commerce sites) in UK.
12
Third Quarter 2014
Revenue and Net Sales by Region: Third Quarter
Revenue¹
Net Sales¹
% Change
% Change
2014
£m
Reported
Constant
Currency
Like-forlike
2014
£m
Reported
Constant
Currency
Like-forlike
North America
945
-0.3
7.5
7.8
848
-5.2
2.2
2.3
UK
404
14.9
14.9
10.2
345
7.3
7.3
3.7
Western Continental Europe
574
-2.5
5.3
4.3
480
-4.7
2.9
1.5
Asia Pacific, Latin America, Africa
& Middle East, Central & Eastern
Europe
840
6.2
16.4
8.5
745
2.5
12.6
4.4
2,763
3.1
10.6
7.6
2,418
-1.2
6.1
3.0
Total
¹ Disclosure of revenue and net sales figures necessary to more accurately show underlying trends, given the significant increase in both on-line
media buying as principal, together with pass-through costs for data investment management
13
Third Quarter 2014
Revenue and Net Sales by Region: Year to Date
Revenue¹
Net Sales¹
% Change
% Change
2014
£m
Reported
Constant
Currency
Like-forlike
2014
£m
Reported
Constant
Currency
Like-forlike
North America
2,823
1.3
9.8
9.5
2,525
-4.2
3.9
3.6
UK
1,188
16.4
16.4
13.4
1,011
8.0
8.0
5.8
Western Continental Europe
1,818
-1.6
4.1
3.2
1,532
-3.8
1.8
0.9
Asia Pacific, Latin America, Africa
& Middle East, Central & Eastern
Europe
2,403
2.2
15.7
8.7
2,142
-1.1
12.1
5.1
Total
8,232
2.8
11.0
8.3
7,210
-1.7
6.3
3.8
¹ Disclosure of revenue and net sales figures necessary to more accurately show underlying trends, given the significant increase in both on-line
media buying as principal, together with pass-through costs for data investment management
14
Third Quarter 2014
Revenue Growth¹ by Region
5.3%
Q3 %
CENTRAL & EASTERN
EUROPE
7.0%
REGION
YTD %
10.2%
UNITED
KINGDOM
13.4%
7.8%
NORTH AMERICA
4.3%
9.5%
WESTERN CONTINENTAL
EUROPE
Mature Markets 7.2%
8.2%
Faster Growing Markets
8.5%
8.7%
Total
7.6%
8.3%
ASIA PACIFIC
Traditional
Media
12.6%
1.7%
MIDDLE
EAST
3.2%
LATAM
6.6%
AFRICA
5.3%
1
YTD
13.5%
3.2%
4.1%
5.3%
Q3
2.0%
3.1%
ANZ
Like-for-like revenue growth vs. 2013
15
Third Quarter 2014
Net Sales Growth¹ by Region
5.0%
Q3 %
CENTRAL & EASTERN
EUROPE
7.1%
REGION
YTD %
3.7%
UNITED
KINGDOM
5.8%
2.3%
NORTH AMERICA
1.5%
3.6%
WESTERN CONTINENTAL
EUROPE
Mature Markets 2.4%
3.2%
Faster Growing Markets
4.4%
5.1%
Total
3.0%
3.8%
ASIA PACIFIC
Traditional
Media
LATAM
4.7%
AFRICA
4.5%
1
YTD
5.7%
0.9%
4.0%
5.3%
Q3
6.0%
1.5%
MIDDLE
EAST
2.9%
‐0.1%
‐0.2%
ANZ
Like-for-like net sales growth vs. 2013
16
Third Quarter 2014
Top 5 Markets – YTD 63%¹ of Revenue and Net Sales, YTD Like-For-Like
Revenue Growth of 9.3%¹ and Net Sales Growth of 3.9%¹
Revenue
People ‘000²
YTD Including associates:
$2.3bn
$1.0bn
16
15
$4.6bn
24
USA
Greater China4
UK
$1.0bn
7
Germany
$0.6bn
5
France
Revenue
Net Sales
Revenue
Net Sales
Revenue
Net Sales
Revenue
Net Sales
Revenue
Net Sales
2014 YTD³
10.0%
3.8%
13.4%
5.8%
9.0%
4.5%
3.9%
2.8%
‐0.3%
‐0.4%
2013³
2.9%
2.9%
4.8%
6.8%
4.0%
3.5%
3.3%
‐0.3%
‐2.6%
‐2.2%
2012³
0.0%
0.1%
4.0%
3.3%
12.3%
12.2%
1.8%
‐1.5%
‐1.6%
‐2.7%
¹ % excluding associates
² Closing headcount at 30 September 2014
³ Like-for-like growth vs. prior year, excluding associates
4 Includes Hong Kong & Taiwan
17
Third Quarter 2014
BRICs Markets – YTD Over 12%¹ of Revenue and Net Sales, YTD Like-For-Like
Revenue Growth of 8.9%¹ and Net Sales Growth of 5.1%¹
Revenue
WPP Rank5
People ‘000²
YTD Including associates:
$0.5bn
$0.3bn
#8
#11
6
13
$1.0bn
#3
15
Greater China4
Brazil
$0.2bn
#17
2
India
Russia
Revenue
Net Sales
Revenue
Net Sales
Revenue
Net Sales
Revenue
Net Sales
2014 YTD³
9.0%
4.5%
0.7%
2.1%
23.0%
9.1%
7.1%
8.9%
2013³
4.0%
3.5%
8.5%
7.8%
4.6%
6.2%
7.9%
5.5%
2012³
12.3%
12.2%
11.4%
11.1%
6.0%
6.3%
9.6%
9.5%
¹ % excluding associates
³ Like-for-like growth vs. prior year, excluding associates
5 Ranked by WPP revenue by market
² Closing headcount at 30 September 2014
Includes Hong Kong & Taiwan
4
18
Third Quarter 2014
Growth by Region
 Asia Pacific, Latin America, Africa & the Middle East and Central and Eastern Europe
was the region with second strongest revenue growth and strongest net sales growth
in the third quarter, with like-for-like revenue growth 8.5% and net sales growth 4.4%.
 Faster Growing Markets represented almost 31% of Group net sales, up from almost
30% in prior year third quarter, despite the impact of currency movements.
 UK was the region with strongest revenue growth and second strongest net sales
growth in the third quarter, with like-for-like revenue growth 10.2% and net sales
growth 3.7%. Media Investment Management grew particularly strongly.
 North America, with like-for-like revenue growth 7.8% and net sales growth 2.3%,
was slower than the first half, with Advertising and Media Investment Management,
Direct, Digital and Interactive and Specialist Communications performing well.
 Western Continental Europe improved over the second quarter, with like-for-like
revenue growth 4.3% and net sales growth 1.5%. France, Germany and Turkey were
strong, but Austria, Belgium, Norway and Switzerland were tough.
19
Third Quarter 2014
Revenue Growth by Country
Revenue Growth1
Countries
>20%
Argentina, India, South Korea
10% to 20%
Mainland China, Thailand, UK
Average³ to 10%
Greater China², Mexico, USA
5% to Average³
Denmark, South Africa, Spain, Sweden, Turkey
Below 5%
Australia, Belgium, Brazil, Canada, France, Germany, Italy,
Japan, Netherlands, Poland, Russia, Singapore
1
Like-for-like growth
Hong Kong and Taiwan
³ WPP Group average like-for-like revenue growth of 7.6%
2 Includes
20
Third Quarter 2014
Net Sales Growth by Country
Net Sales Growth1
Countries
>20%
Argentina
10% to 20%
India, Poland, Thailand
5% to 10%
Mainland China, Turkey
Average³ to 5%
Germany, Italy, Mexico, Singapore, South Africa, UK
Below Average³
Australia, Belgium, Brazil, Canada, Greater China², Denmark,
France, Japan, Netherlands, Russia, South Korea, Spain,
Sweden, USA
1
Like-for-like growth
Hong Kong and Taiwan
³ WPP Group average like-for-like net sales growth of 3.0%
2 Includes
21
Third Quarter 2014
Revenue Growth by Category
Revenue Growth¹
Categories
More than 10%
Entertainment, Travel & Airline
Average² to 10%
Drinks
5% to Average²
Automotive, Financial Services
Less than 5%
Computers, Electronics, Food, Government, Oil, Personal Care
& Drugs, Retail, Telecommunications
1
2
Like-for-like growth
WPP Group average like-for-like revenue growth of 7.6%
22
Third Quarter 2014
Effects of Currency
 Currency movements accounted for a 7.5% decrease in reported revenue and 7.3% in net
sales, reflecting the overall strength of the £ sterling against many currencies, particularly in
the faster growth markets. This has been so in every quarter since the final quarter of 2013,
though sterling not as strong overall in the third quarter, as in the first half of 2014.
 Sterling stronger overall as follows:
Q3 2014
Q3 2013
Sterling
Stronger
US$
1.67
1.55
8%
€
1.26
1.17
8%
¥
174
153
14%
Chinese Renminbi
10.3
10.2
1%
Brazilian Real
3.80
3.55
7%
Australian $
1.80
1.69
7%
Canadian $
1.82
1.61
13%
Indian Rupee
101
97
4%
Singapore $
2.09
1.97
6%
Russian Rouble
60.6
50.9
19%
South African Rand
18.0
15.5
16%
23
Third Quarter 2014
Projected impact of Foreign Exchange¹
Q1 Act
Q2 Act
Q3 Act
Q4 Est
0.0%
Change versus Prior Year
‐1.0%
‐2.0%
‐3.0%
‐4.0%
‐5.0%
‐6.0%
‐7.0%
‐8.0%
Revenue
‐9.0%
Net Sales
‐10.0%
 Full year impact if rates remain at current levels projected to be
<-7% on both revenue and net sales.
1
Q4 2014 estimate based on latest FX rates incl US$/£ at $1.61 and €/£ at €1.27
24
Third Quarter 2014
Trade Estimates of Major New Business Wins Over $100m Billings
WPP Agency
Incumbent
Account
Office
Billings($m)
MEC
OMC
Vodafone
Global
1,008
David
IND
Burger King
Global
325
Mindshare
OMC
Pepsi
China
250
Maxus
DEN/IND
NBC Universal
USA
200
MEC
PUB
BGL Group
Global
185
MediaCom
DEN
ebay
Global
170
Cavalry
PUB
Miller Lite
USA
160
MediaCom
DEN
ebay
EMEA
131
Grey
OMC
Papa John’s
USA
119
GroupM/Ogilvy
PUB
E-Trade
Global
109
Mindshare
PUB
Marks & Spencer
UK
101
Ogilvy
N/A
Tiffany & Co.
Global
100
Johannes Leonardo
IND
Estee Lauder
Global
100
Shaded figures are Q3 wins
25
Third Quarter 2014
Trade Estimates of Major New Business Wins $30m-$100m Billings
WPP Agency
Incumbent
Account
Office
Billings($m)
Ogilvy
Grey
Allianz
Global
90
Johannes Leonardo
IND
TTI Floor Care
Global
80
Mindshare
HAV
Volvo
Global
80
Maxus/MediaCom
DEN
RWE/nPower
EMEA
73
Wunderman
Various
GSK
Global
61
MediaCom
IND
DSW
Global
60
RKCR/Y&R
N/A
UK Government
Global
50
JWT
N/A
Tata
Global
45
MEC
OMC/DEN
RAF/Royal Navy
UK
42
JWT
N/A
Puma
Global
35
MediaCom
N/A
Indeed.com
Global
30
MediaCom
DEN
Hillarys
Global
30
MediaCom
PUB
Coca-Cola
Italy
30
Johannes Leonardo
PUB
TripAdvisor
Global
30
Shaded figures are Q3 wins
26
Third Quarter 2014
Trade Estimates of Major New Business Losses
WPP Agency
Winning Agency
Account
Office
Billings($m)
Wunderman/POSSIBLE
IPG/DEN
Microsoft
Global
320
MediaCom
PUB
ConAgra
USA
135
Grey
Ogilvy
Allianz
Global
90
OgilvyOne
PUB
British Airways
Global
90
Grey
PUB
Red Lobster
USA
60
Ogilvy
OMC
Meyer
Global
30
Ogilvy/Mindshare
OMC
SAP
Global
30
Shaded figures are Q3 losses
27
Third Quarter 2014
Internal Estimates of Net New Business Wins – Third Quarter YTD
Creative
Media
Total
Advertising
991
3,885
4,876
Other Businesses
871
-
871
1,862
3,885
5,747
($m)
Third Quarter YTD
28
Third Quarter 2014
Trade Estimates of Major New Business Wins/Losses Since 1 October
WINS
LOSS
WPP Agency
Incumbent
Account
Office
Billings($m)
MediaCom
PUB
AB InBev
USA
575
MediaCom
IPG
Bayer/Merck
USA
150
MEC
Various
Tiffany & Co.
Global
100
MediaCom
PUB
Procter & Gamble
Latin America
75
MEC
PUB
Nestlé
Australia
60
Maxus
OMC
L’Oreal
EMEA
60
POSSIBLE
OMC/Various
Danone
Global
30
WPP Agency
Winning Agency
Account
Office
Mindshare
PUB
Nestlé
UK
Billings($m)
96
29
Third Quarter 2014
Cash Flow and Net Debt
 Average net debt for September YTD down £126m to £2.935bn, compared to
£3.061bn in 2013, at 2014 exchange rates.
 Acquisitions (including earnouts) for September YTD of £341m (2013 - £186m) and
share buy-backs of £499m (2013 - £134m).
 Net debt at 30 September up £465m to £3.315bn, compared to £2.850bn last year,
at 2014 exchange rates, reflecting incremental acquisition spend of £155m and
share buy-backs of £365m.
 Issue of two medium term bonds of $750m (10 years) and €750m (12 years) at
3.75% and 2.25% respectively, securing funding of over £1bn at an average coupon
of less than 3%, and reducing interest charges further.
 Average net debt to Headline EBITDA, for 12 months to 30 September, at the
bottom of our target range of 1.5x - 2.0x.
30
Third Quarter 2014
Acquisitions and Investments – Year to Date
Faster Growing
Markets
Quantitative &
Digital
APPNEXUS (USA)²
Bannerconnect (Netherlands)
CMC Capital Partners (USA)²
EXP (AFRICA)
AMVG (Turkey)
Lemon Sky (Poland)
Cognifide (UK)
NEOWORKS (UK)
Circus (Peru)
EPIGRAM (BRAZIL)
APPLOGIX (SOUTH AFRICA)
Marketeers (Vietnam)
Data Republic (Spain)
Percolate (USA)²
BLINKS (BRAZIL)
POLESTAR (CHINA)²
DNX (UK)
Precise (UK)
,
Hardy Boys (South Africa)
CBC II (China)¹ ²
Quirk (South Africa)
DOUBLE ENCORE (USA)
Scoutit (USA)²
Memac Ogilvy (M East)¹
Daedalus (Romania)
Social Wavelength (India)
Effective (USA,UK,Netherlands)
Twist Image (Canada)
MCS (MONGOLIA)
Egift (China)
Sofresh (Vietnam)
FusePump (UK)
X-Prime (France)
Ray & Keshevan (India)¹
EVIDENCIAS (BRAZIL)
TEEIN (CHINA)
Gamaroff (UK)¹
ZAPPISTORE (UK)²
Xtel (Italy)
Rice5 (China)
Glendinning M East (UAE)¹
TRY (BRAZIL)
GUARDIAN DIGITAL (UK)
Temple (India)
GLOBANT (ARGENTINA)¹,³
TMARC (South Africa)
HAWORTH (USA)³
Volcano (South Africa)
Interactive (India)¹
XMKT Group (China)
INSIGHTEXPRESS (USA)
WVI (Russia)¹
INDIGENOUS (USA)²
KEYADE (FRANCE)
Media Rights Capital(USA)²
1
Step-ups in investments, associates and subsidiaries’ equity
Investment
³ Associate
CAPITALS ARE Q3 ACQUISITIONS
2
31
Third Quarter 2014
Acquisitions and Investments – Since 1 October
Quantitative &
Digital
Faster Growing
Markets
Civolution (France)
Planorama (France)
Rentrak (USA)¹
Healthcare
Element (USA)
1 Investment
32
Third Quarter 2014
Uses of Free Cash Flow
Target
Sept YTD
2014
Sept YTD
2013
FY 2013
£300-£400m
£341m²
£186m²
£221m²
n/a
£499m³
£134m
£197m
2%-3%
3.0%
1.0%
1.4%
n/a
10%
20%
20%
45%4
n/a
n/a
42%
Category
Acquisitions¹
Share buy-backs:
% of issued share capital
Dividend increase
Dividend pay-out ratio
¹ Includes investments and step-ups in subsidiaries’ equity
² Net of disposal proceeds and net of acquired cash
³ 40.1 million shares at a cost of £499m and an average price of £12.45 per share
4 Target over 2 years to 2015
33
Third Quarter 2014
Using Free Cash Flow to Enhance Share Owner Value
Distributions to Share Owners Over the Last 10 Years
£’m
7,000
6,716
Cumulative from 1 January 2004:
Buy-backs
Dividends declared
6,000
5,628
Dividends paid
Headline Earnings
% of Headline Earnings
5,000
4,662
3,779
4,000
53%
3,049
3,000
2,499
769
1,000
89
328
52%
82 2004
62%
55%
241
182
301
2005
2006
1,257
73%
914
1,589
1,392
60%
65%
1,289
0
53%
55%
1,850
2,000
2,088
52%
1,075
1,019
1,029
992
440
791
1,231
601
2007
2008
2009
2010
2011
499
1,553
2012
1,951
2013
2,260
YTD Q3 14
34
Third Quarter 2014
Market Environment
Macro
Uniformly slightly higher nominal and real GDP
projections for 2015 than for 2014.
Strong recovery in US and UK, but signs of
stagnation and worries about deflation in the
Eurozone.
Deficit management still key for US, EU and UK
but not “front of mind”.
Pressure on traditional media, perhaps including
TV, from media consumption and hyperactivity in
new media.
Concerns over Syria/Isis, Russia/Ukraine and
Ebola crisis.
Protests in Hong Kong and impact on China.
Implications in UK of possible EU referendum.
Micro
Geo-political issues source of increased client caution.
Clients still focussed on following consumers in new
media and opportunities in faster growing markets.
Clients continue to invest in capacity and brands in
faster growing markets, and in brands in mature markets
to maintain or gain market share.
Growing importance of targeted on-line audience
buying, horizontality, role of big data and shopper
marketing.
Increasing focus on relative roles of technology in
enabling new methods of marketing and on relative
roles of CMO and CIO.
Efficiency and effectiveness still key with client pressure
on pricing, payment and intellectual property terms.
As always, pressure for continuous improvement.
35
Third Quarter 2014
Summary
 Performance in the first nine months strong, with like-for-like revenues up 8.3% and net
sales up 3.8% and with a 2.7% contribution from acquisitions to revenues and 2.5% to
net sales.
 Strong foreign exchange headwinds of 8.2% reduced constant currency revenue growth
to 2.8% on a reported basis, and 8.0% headwind reduced constant currency net sales
growth to -1.7% on a reported basis.
 All geographies and sectors showed revenue and net sales growth on a like-for-like
basis.
 First nine months profits and margins ahead of prior year and ahead of full year target.
 Strong new business, resulting in continuing leading position in new business league
tables and a strong start to Q4 with over $1bn of billings won to date – more to be
announced.
36
Third Quarter 2014
Like-for-Like Growth and GDP
11
10
WPP Like-for-Like Net Sales Growth
WPP Like-for-Like Revenue Growth
GDP Nominal / Goldman Sachs
GDP Nominal / WPP
GDP Nominal / Business Council (2014 Only)
9
8
Growth (%)
7
6
5
4
3
2
1
0
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 FY/14
37
Third Quarter 2014
Asia Pacific FMCG Sales¹
Moving Average Trend vs Year Ago
Value movement
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
16%
13%
14%
11%
9%
9%
7%
6%
6%
Indonesia
N/A
N/A
15%
17%
19%
16%
14%
15%
15%
Philippines
5%
5%
5%
5%
7%
6%
2%
0%
-2%
Thailand
8%
9%
11%
10%
11%
10%
8%
7%
6%
Urban Vietnam
15%
16%
15%
14%
12%
11%
10%
9%
8%
Rural Vietnam
23%
18%
12%
11%
10%
10%
12%
12%
13%
Taiwan
6%
8%
9%
10%
10%
7%
4%
3%
2%
Malaysia
5%
5%
5%
5%
5%
3%
2%
-1%
-2%
Korea
8%
7%
7%
6%
4%
4%
2%
1%
1%
India
7%
8%
8%
7%
7%
4%
3%
3%
3%
China (Urban)
Average Growth
¹ Source: Kantar Worldpanel Data on Value of FMCG Sales
8.8%
5.2%
38
Third Quarter 2014
Latin America FMCG Sales¹
Moving Average Trend vs Year Ago
Value movement
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Argentina
14%
28%
30%
30%
48%
33%
Bolivia
11%
13%
5%
4%
12%
9%
Brazil
7%
8%
10%
13%
14%
15%
Central America
5%
3%
3%
1%
1%
1%
Chile
3%
3%
3%
2%
2%
3%
Colombia
1%
-1%
-2%
-4%
0%
4%
Ecuador
-1%
3%
5%
6%
9%
6%
Mexico
6%
5%
3%
3%
2%
3%
Peru
9%
8%
3%
2%
1%
2%
24%
26%
31%
39%
46%
52%
Venezuela
Average Growth
¹ Source: Kantar Worldpanel Data on Value of FMCG Sales
8.7%
13.0%
39
Third Quarter 2014
Summary - Our Strategic Priorities
 Faster growing markets to be 40-45% of total Group revenues over the next five years.
 New media to be 40-45% of total Group revenues over the next five years.
 Data Investment Management and quantitative disciplines to be one half (achieved)
with focus on the application of technology, big data and digital.
 Horizontality – ensuring our people work together through client teams and country
and sub-regional managers for the benefit of clients.
40
Third Quarter 2014
The Application of Technology, Big Data and Digital
 Two important technology partnerships completed in the last 6 weeks underline the progress
and importance of applying technology to enhance clients’ marketing effectiveness. Both
involved trading existing assets of the Group:
1. WPP injected the XFP platform, plus $25m in cash in exchange for ca 15% of AppNexus, a much
sought after partner by competitors. AppNexus will strengthen the technology backbone of Xaxis real
time buying and partner on future developments.
2. WPP injected Kantar Media’s US TV measurement business and $56m in exchange for 17% of
Rentrak¹. Kantar will have access to more powerful tools to understand consumer TV habits and
GroupM will be able to integrate consumer data with TV data.
 WPP is unique in the sector in terms of the depth and scale of its investment in technology,
commencing with the investment of $0.6bn in 24/7 Real Media in 2007.
 WPP’s minority-owned technology and content assets (eg AppNexus, eRewards, Globant¹,
Infoscout, Mutual Mobile, Syzygy¹, Fullscreen, Imagina, MRC, and vice.com) are valued at
over $1bn based on quoted market values or most recent funding rounds. Based on market
comparisons, Xaxis on its own would be valued at additional ca $4bn.
 WPP is holding an Investor Briefing on Digital and Technology on 12 November 2014.
¹ Bloomberg ticker RENT US,GLOB US, SYZ GY
41
Third Quarter 2014
Outlook
 Preliminary quarter 3 revised forecast shows some softening in revenues and net
sales on the quarter 2 revised forecast.
 Our target remains like-for-like net sales growth of over 3% and a margin
improvement of 0.3 margin points before the impact of currency.
 Headcount growth remains below revenue and net sales growth and staff costs and
hires will be tightly controlled, as we enter quarter four and plan for 2015.
 The Group is well placed geographically and functionally to capitalise on industry
trends and to deliver in line with our targets. The Group has the leading position in
new markets, in new media, in data investment management, including data
analytics and the application of technology and horizontality. This is reinforced by
the consistently and globally recognised leading creative position in the industry.
42
2
Other Financial Information
(Hard Copy only)
43
Debt Maturity Profile £m
30th September 2014
586
586
US bond $500m (3.625% ’22)
309
309
US bond $812m (4.75% ’21)
501
501
£ bonds £200m (6.375% ’20)
200
200
£ bonds £400m (6% ’17)
400
400
Eurobonds €750m (6.625% ’16)
586
586
Eurobonds €500m (5.25% ’15)
391
391
Debt facilities
4,516
4,516
Bank revolver¹ ($2,500m)
1,543
259*
‐
(1,460)
6,059
3,315
Net cash, overdrafts and other adjustments
Total Borrowing Capacity/Net debt
400
300
200
100
0
Available Liquidity £2,744m
¹ Subject to financial covenants
* Commercial Paper issued ($420m) is set off against the Bank Revolver (which backs up CP issuance)
Exchange Rates £/$ 1.62 £/€ 1.28
2043
Eurobonds €750m (3.0% ’23)
500
2042
463
2026
463
2025
US bond $750m (3.75% '24)
2024
586
2023
586
2022
Eurobonds €750m (2.25% '26)
600
2021
185
2020
185
2019
US bond $300m (5.125% ’42)
700
2018
309
2017
309
2016
US bond $500m (5.625% ’43)
2015
Total
Drawn
Total Drawn (£m)
Total Credit
43
Third Quarter 2014
Acquisitions
Applogix – South Africa (Wunderman)
Applogix is a marketing and ecommerce technology company in South Africa. Founded in 2005 and
employing around 20 people in Johannesburg, the agency’s services include web and mobile
application build, front end development, ecommerce and user experience design. Clients include
MTN, Standard Bank and Shell.
AppNexus¹ – USA (GroupM)
AppNexus' is the world's largest independent advertising technology provider. The company
employs nearly 600 people and is based in New York with 10 offices around the world. It was
founded in 2007. AppNexus' platform allows real time buying and selling of digital advertising for
marketers, publishers and content providers and media investment management companies,
including Xaxis and its parent GroupM, the WPP-owned media investment management company
that oversees US$105 billion in client billings, according to RECMA. AppNexus currently delivers
more than 30 billion advertising impressions per day and forecasts that annual spending across its
platform will exceed US$2 billion in 2014.
Blinks – Brazil (JWT)
Blinks is a leading search engine marketing agency in Brazil. Clients include Bom Negócio, CVC,
Netfarma, Staples, BB Box, Giuliana, and Sem Parar. Founded in 2009, the company employs 81
people and is based in São Paulo. Blinks specializes in sponsored-links campaigns and other
performance media. As the Internet continues to grow, clients are focused on effective searchengine marketing (SEM) strategies in a complex effort to achieve top search engine rankings. As a
result, clients are increasingly turning to SEM solutions, such as Blinks, to play a strategic role in
maximizing their Internet presence and their effective return on investment.
¹ Investment
45
Third Quarter 2014
Acquisitions
Double Encore – USA (POSSIBLE)
Clients include Major League Soccer, JetBlue, PGA TOUR, Kingston Technology Company and
Meredith Corporation. Based in Denver, Double Encore employs 55 people. The company develops
mobile apps for brands for iOS and Android operating systems.
Epigram – Brazil (Brand Union)
Epigram offers a range of services including identity development, graphic design and packaging,
architecture and retail space. Clients include MasterCard, Telefonica, Vivara, Giraffas and Delboni.
Founded in 2004, Epigram is based in São Paulo and employs 60 people.
EXP – Pan-Africa (Scangroup)
EXP is a pan-African experiential marketing group based in South Africa with a presence in 12
countries across sub-Saharan Africa and employs over 1,700 people.
Evidências – Brazil (Kantar)
Evidências was founded in 1998, the company employs 22 people and is based in Campinas with
an office in São Paulo. Evidências provides consultancy and research services in
pharmacoeconomic studies and analysis, local dossier submission packages, professional writing,
market access and training. It works with all segments of the Brazilian healthcare market, including
health insurers, government bodies, hospitals and providers, and pharmaceutical and medical
device manufacturers.
46
Third Quarter 2014
Acquisitions
Guardian Digital Agency – UK (Kantar)
Guardian Digital Agency is a specialist data visualisation, site design and interactive development
agency, previously part of Guardian News and Media Group. The company, which employs 13
people, will be rebranded under the new name Graphic. Many of Kantar's 12 companies have
already worked with GDA to increase the impact and interactivity of their insights work.
Haworth Marketing + Media¹ – USA (GroupM)
Haworth is a media agency in the United States. The agency manages media investment for
clients such as Target, Ben & Jerry's, Beats by Dr. Dre, Honeywell, DreamWorks Animation and
The Oscars. Haworth, which employs 140 people and has offices in Minneapolis and Los
Angeles, was founded in 1970.
InsightExpress – USA (Kantar)
InsightExpress is a provider of media analytics and marketing accountability solutions in the
United States. The company has over 200 clients including NBCUniversal, Google, Netflix, Hulu
and Microsoft. Founded in 1999, the company is based in Stamford, CT, with offices in New York,
Chicago and San Francisco and employs 100 people.
¹ Associate
47
Third Quarter 2014
Acquisitions
Indigenous Media¹ – USA (WPP Digital)
Indigenous Media is a new digital studio that produces high-quality scripted content and develops channel
brands for content distribution, founded by award-winning film makers Jon Avnet, Rodrigo Garcia and Jake
Avnet. Indigenous Media will focus on producing scripted hour-long and half-hour long series for digital
platforms worldwide, as well as developing multi-platform content brands. Director/producers Jon Avnet
(Black Swan, Justified, Fried Green Tomatoes, Risky Business), Rodrigo Garcia (Albert Nobbs, In
Treatment, Big Love, Last Days in the Desert), and Jake Avnet have won Oscars, Emmys and Tonys for
their work.
Keyade – France (GroupM)
Keyade is a leading digital search marketing agency in France. Founded in 2006 and employing around 75
people in Paris and Dubai, the agency specialises in performance-driven online media purchasing. Clients
include La Redoute, Air France and Interflora.
MCS – Mongolia (Y&R)
Y&R Advertising has agreed to acquire the creative and research agency of MCS Holding LLC, one of
Mongolia’s largest conglomerates. Established in 2008, this creative and research agency provides a range
of services, including advertising development and events management as well as consumer and retail
market research services. Its clients include MCS Asia Pacific Brewery, Dell, Herbalife, and JTI. The
agency has approximately 45 people.
¹ Investment
48
Third Quarter 2014
Acquisitions
Neoworks – UK (WPP Digital/Salmon)
Neoworks is based in London and specialises in the implementation of e-commerce sites using
SAP's hybris technology. Neoworks employs 35 people and services clients including Ted Baker,
ASICS, and T-Mobile.
Teein – China (Y&R/VML)
Teein is one of the country’s pioneer social media agencies. Established in 2004, Teein employs
approximately 170 people in its Shanghai HQ. Offering social listening, social marketing and social
CRM, full-service social agency Teein uses self-developed products to deliver brand socialization
integrated solutions to great brands including, Estee Lauder, Google, SAP, Danone.
Try – Brazil (JWT)
Try is a user experience agency in Brazil that designs and develops custom web, mobile, desktop
and touch-enabled applications. Clients include, Itaú Bank, Porto Seguro, Electrolux, SKY, SerasaExperian, Havaianas, Prontmed, and Kate Spade. Founded in 2003, the company employs 22 people
and is based in São Paulo. Try provides consultancy to their clients in user experience, interaction
design and prototyping.
Zappistore¹ - UK (Kantar)
ZappiStore is a global pioneer in automated market research, based in London. Launched in 2013,
ZappiStore offers powerful software applications which provide automated data collection and
analytics through a self-service platform. The company currently operates in nine countries with plans
to expand into 11 additional markets in the near future. ZappiStore’s clients include five of the top 10
global consumer goods companies.
¹ Investment
49
3
28 Year History
(Hard Copy Only)
50
28 Year History
WPP Reported Revenue
£’m
12,000
11,019
11,000
10,373
10,022
10,000
9,331
8,684
9,000
8,000
7,477
28 year CAGR 33%
7,000
5,908
6,000
6,185
5,374
5,000
4,022 3,908 4,106
4,000
4,300
2,981
3,000
2,000
1,005
1,000
4
24
284
1,747
1,555 1,691
1,264 1,204 1,273 1,431 1,427
1,918
2,173
547
0
51
28 Year History
WPP Net Sales
£’m
11,000
10,076
10,000
9,239
9,000
9,515
8,561
7,981
8,000
7,009
7,000
28 year CAGR 32%
6,000
5,611
5,850
5,133
5,000
3,790 3,690 3,869
4,000
4,074
2,736
3,000
2,000
843
1,000
4
24
219
1,328 1,437 1,469
1,076 1,016 1,070 1,209 1,204
1,633
1,855
442
0
52
28 Year History
%
WPP Like-for-Like Revenue Growth
20
18.6
15.0
15
13.9 14.1
11.8
Average: 5.5%
10
8.0
6.3
5.7
5
8.3
8.4
8.0
8.0
5.5
5.2
4.0
5.4
5.3
5.0
5.3
4.0
2.9
2.7
3.5
N/A
0.7
0
-3.0
-5
-4.7
-5.9
-8.1
-10
Note: Estimates for 1985-1990
53
28 Year History
WPP PBIT and Margins
2004 onwards
PBIT reported
under IFRS
PBIT
£’m
1,600
PBIT margin
%
16.5%
14.9%
14.8%
1,400
14.0%
12.7%
14.1% 14.0%
14.4%
15.0%
15.0%
14.5% 14.3%
14.8%
11.3%
13.2%
12%
12.3%
1,000
11.8%
11.7%
10.0%
9.8%
10.8%
10.5%
1662
10.1%
800
9.7%
1429
8.4%
7.0%
1229
1017
7.0%
5.5%
8%
1118
28 Year CAGR: 35%
7.5%
5.9%
10%
1531
9.6%
8.3%
600
400
14%
14.3%
13.0% 13.0%
12.8%
15.1%
12.7%
13.4%
11.6%
859
928
6%
755
5.6%
5.5%
561
5.0%
431
200
2.3%
0.3
0
14.0% 13.0%
16%
15.3%
14.7%
13.8% 13.7%
14.5%
12.2% 12.4%
15.5%
15.3%
15.0%
1,200
16.1%
15.9% 16.0%
15.7% 15.8%
1.4
22
51
103
133
60
75
100
121
150
182
206
245
480
534
560
4%
291
2%
2.3%
Revenue Margin - Full Year
Note
Revenue Margin - Full Year Pro-forma for TNS acquisition
Net Sales Margin - Full Year
Net Sales Margin - Full Year Pro-forma for TNS acquisition
Headline PBIT includes associates and excludes goodwill and intangible charges, gain on sale of New York property, restructuring charges, costs of changes in
corporate structure, investment gains/losses, and share of exceptional gains/losses of associates. For 2004 onwards, headline PBIT has been prepared under IFRS.
2003 and prior periods are in accordance with previous UK GAAP
54
History
pence
WPP Headline Diluted EPS Post 1992 Rights Issue
90
80.8
80
73.4
67.7
70
20 Year CAGR: 15%
60
56.7
55.5
50
45.8
44.4
42.0
40
36.0
30.3
32.3
30.9
29.0
30
22.7
27.9
23.8
18.8
20
13.5
15.7
9.4
10
5.0
6.5
0
UK GAAP
IFRS
Note: 1993 adjusted to reflect 1992 rights issue. Headline Diluted EPS
55
Trading Statement for the
Third Quarter 2014