2018 Interim Results London 4 SEPTEMBER 2018 WPP plc 1 2018 - - PowerPoint PPT Presentation

2018 Interim Results

London

4 SEPTEMBER 2018

WPP plc 1

Safe Harbour Statement

2018 INTERIM RESULTS The following cautionary statement is included for safe harbour purposes in connection with the Private Securities Litigation Reform Act of 1995 introduced in the United States of America. This presentation may contain forward-looking statements within the meaning of the US federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially including adjustments arising from the annual audit by management and the Company’s independent auditors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings by the Company with the Securities and Exchange Commission. The statements in this presentation should be considered in light of these risks and uncertainties.

WPP plc 2

• Improving top-line growth –like-for-like revenues less pass-through costs up 0.7% in Q2, the first quarter of growth since Q1

2017.

• Overall North America like-for-like growth still challenging, as advertising, data investment management and brand

consulting came under further pressure, but strong improvement in media investment management. Remains the highest priority to improve.

• Slight decline in like-for-like Headline PBIT margin of 0.4 margin points (of which 0.1 margin point is due to lower associate

income), with higher incentives accounting for 0.2 margin points. Increase in property and other operating costs offsetting improvement in staff costs pre-incentives. Average headcount reduced by over 2,000 staff or 1.7%.

• Good progress on the asset disposal plan, raising £676m cash proceeds so far this year, with no loss of revenue and minimal

impact on profit.

• Net debt at 30 June only £84m better, despite asset disposals of £469m in first half, following worse NWC position.

However, significant improvement in net debt position at 31 July, favourable £508m compared with last year, reflecting improved NWC. Further cash proceeds of £207m received in August and early September .

• Interim dividends maintained at 22.7p same as 2017.
• Full year guidance updated to reflect the revenue less pass-through costs and margin performance in the first half.

2018 INTERIM RESULTS

First Half Highlights

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Summary IFRS Income Statement

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HALF YEAR TO 30 JUNE 2018 £M 2017¹ £M Δ REP EPORTED² Δ CONSTANT CU CURRENCY³

Revenue 7,493 7,650

• 2.1%

2.9% Gross profit 1,274 1,368

• 6.9%
• 2.2%

Operatin ing pr profit 842 842 724 724 16.2 16.2% 22.5 22.5% PBIT⁴ 851 851 784 784 8.6 8.6% 14.5 14.5% Profit be before tax 846 846 779 779 8.6 8.6% 14.2 14.2% Tax rate 16.7% 18.7%

• Profit after tax

705 634 11.3% 16.8% Reported dil diluted EPS PS 53.4 53.4p 46.6 46.6p 14.6 14.6% 20.3 20.3%

1 2017 revenue and revenue less pass-through costs restated by £247m and £14m respectively for the implementation of IFRS 15 2 Percentage change in reported sterling 3 Percentage change at constant currency rates 4 Includes net exceptional gain of £114m

2018 INTERIM RESULTS

Summary Headline¹ Results

WPP plc 5 1 Figures before goodwill and intangibles charges, gains/losses on step-ups, gains/losses on disposals of subsidiaries and investments, investment write-downs, share of exceptional gains/losses of associates, restructuring costs and revaluation of financial instruments 2 2017 revenue and revenue less pass-through costs restated by £247m and £14m respectively for the implementation of IFRS 15 3 Like-for-like growth at constant currency exchange rates and excluding the effects of acquisitions and disposals 4 Headline PBIT before associates as a percentage of revenue less pass-through costs margin 5 Margin points 6 Headline PBIT as a percentage of revenue less pass-through costs margin 7 Average Net debt/EBITDA for 12 months to 30 June

HALF YEAR TO 30 JUNE 2018 £M 2017² £M Δ RE REPORTED Δ CONSTANT CURR RRENCY Δ LI LIKE-FOR-LIKE³ Revenue 7,493 7,650

• 2.1%

2.9% 1.6% Revenue less pass-through costs 6,149 6,376

• 3.6%

1.4% 0.3% PBIT be before ass associates 783 783 836 836

• 6.3

6.3%

• 1.6

1.6% PBIT 821 821 882 882

• 7.0

7.0%

• 2.3

2.3% EBITDA 948 1,016

• 6.7%
• 1.9%

PBIT before associates margin⁴ 12.8% 13.1%

• 0.4⁵
• 0.4⁵
• 0.3⁵

PBIT margin⁶ 13.3% 13.8%

• 0.5⁵
• 0.5⁵
• 0.4⁵

Tax rate 22.5% 22.0% n/a n/a Dilu iluted EP EPS 42 42.6 .6p 45 45.4 .4p

• 6.2

6.2%

• 1.3

1.3% Dividend pe per r sh share 22 22.7 .7p 22 22.7 .7p

• Average net debt

(4,979) (4,811)

• 3.5%
• 5.8%

Rolling average net debt/EBITDA⁷ 2.1x 1.9x n/a n/a

2018 INTERIM RESULTS

Revenue Less Pass-Through Costs Growth versus Prior Year

2018 INTERIM RESULTS

• 5.1%
• 6.1%

1.1%

• 0.1%

1%

• 3.9%

1.1% 0.7%

• 5.0%

1.1% 0.3%

Q1 Q2 H1

• 2.1%
• 3.9%

1.1% 0.7% 7%

• 3.6%
• 5.0%

1.1% 0.3% 3% WPP plc 6

Li Like-for-lik like Acquisitions FX Reported Li Like-for-lik like Acquisitions FX Reported Li Like-for-lik like Acquisitions FX Reported

Impact of Foreign Exchange on Revenue Less Pass-Through Costs

4.6%

• 6.1%
• 3.9%
• 2.3%
• 0.7%
• 3.1%
• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 2017 FY ACT 2018 Q1 ACT 2018 Q2 ACT 2018 Q3 EST 2018 Q4 EST 2018 FY EST

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• H1 headwind -5%.
• Full year headwind -3%.
• Q3-Q4 run at £/US$ 1.30

and £/€ 1.11.

2018 INTERIM RESULTS

Revenue Less Pass-Through Costs by Region

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REVENUE LESS PASS-THROUGH COSTS HALF YEAR TO 30 JUNE % GROUP 2018 £M 2017¹ £M Δ REPORTED Δ CONSTANT CURRENCY Δ LIKE- FOR-LIKE

North America 35.0 2,155 2,407

• 10.5%
• 2.4%
• 2.9%

UK 13.5 833 815 2.2% 2.2% 1.5% Western Continental Europe 21.5 1,319 1,236 6.7% 5.5% 1.9% Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 30.0 1,842 1,918

• 4.0%

3.1% 2.6% Total 100.0 6,149 6,376

• 3.6%

1.4% 0.3%

1 2017 revenue less pass-through costs restated by £14m for the implementation of IFRS 15

2018 INTERIM RESULTS

• W. Con
• nt. Eur

Europe Q1 Q2 Q2

• 0.2%

3. 3.9% 9% UK UK Q1 Q2 Q2 1.6% 1. 1.4% 4%

Revenue Less Pass-Through Costs Like-For-Like Growth by Region

Q1 Q2 H1 H1 Mature Mar arkets

• 1.0% -0.3% -0.6%

“Faster Growing” Markets 2.3% 2.9% 2.6% Total

• 0.1%

0.7% 0.3%

2018 INTERIM RESULTS

Nor North Americ ica Q1 Q2 Q2

• 2.4%
• 3.

3.3% Afr fric ica & & M. Eas ast Q1 Q2 Q2

• 3.1%
• 1.

1.6% La Latin tin Americ ica Q1 Q2 Q2 9.1% 8. 8.6% 6%

• C. &

& E.

• E. Eur

Europ

• pe

Q1 Q2 Q2 5.6% 3. 3.1% 1% Asi sia Pacifi fic Q1 Q2 Q2 0.7% 1. 1.8% 8%

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Major Markets

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REVENUE LESS PASS-THROUGH COSTS GROWTH¹ 2018 H1

• 2.8%

2.8% 1.5% 1.5% 0.0% 0.0% 4.5% 4.5% 0.3% 0.3% 2018 Q2

• 3.3%

1.4% 5.5% 6.5%

• 0.1%

2018 Q1

• 2.2%

1.6%

• 5.7%

2.1% 0.7% 2017 FY

• 3.2%

4.8%

• 1.3%
• 3.2%

0.4%

USA UK Greater China² Germany France

1 Like-for-like growth vs prior year 2 Includes Hong Kong and Taiwan

2018 INTERIM RESULTS

BRIC Markets

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Greater China² India Brazil Russia

REVENUE LESS PASS-THROUGH COSTS GROWTH¹ 2018 H1 6.6% 6.6% 4.5% 4.5% 5.9% 5.9% 0.9% 0.9%

• 4.6%

4.6% 2018 Q2 9.0% 6.5% 5.9% 1.4%

• 9.3%

2018 Q1 3.6% 2.1% 6.0% 0.3% 0.6% 2017 FY

• 1.8%
• 3.2%

1.6% 1.1%

• 15.4%

Mainland China 2018 INTERIM RESULTS

1 Like-for-like growth vs prior year 2 Includes Hong Kong and Taiwan

Revenue Less Pass-Through Costs by Sector

WPP plc 12 1 2017 revenue less pass-through costs restated by £14m for the implementation of IFRS 15

REVENUE LESS PASS-THROUGH COSTS HALF YEAR TO 30 JUNE % GROUP 2018 £M 2017¹ £M Δ REPORTED Δ CONSTANT CURRENCY Δ LIKE- FOR-LIKE

Advertising, Media Investment Management 42.9 2,639 2,848

• 7.3%
• 2.8%
• 0.8%

Data Investment Management 15.4 946 997

• 5.1%
• 0.8%
• 1.5%

Public Relations & Public Affairs 9.0 551 568

• 3.0%

2.6% 3.5% Brand Consulting, Health & Wellness and Specialist Communications 32.7 2,013 1,963 2.5% 8.4% 1.9% Total 100.0 6,149 6,376

• 3.6%

1.4% 0.3%

2018 INTERIM RESULTS

1 Figures before goodwill and intangibles charges, gains/losses on step-ups, gains/losses on disposals of subsidiaries and investments, investment write-downs, share of exceptional gains/losses of associates, restructuring costs and revaluation of financial instruments 2 Headline PBIT as a percentage of revenue less pass-through costs margin 3 2017 proforma headline PBIT margin restated for the implementation of IFRS 15 13

Like-For-Like Change in Headline¹ PBIT Margin²

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• 0.4%

2018 INTERIM RESULTS

13.7%

• 0.2%
• 0.1%
• 0.2%

0.2% 13.3%

• 0.1%

HEADLINE PBIT¹ £M HEADLINE PBIT MARGIN² HALF YEAR TO 30 JUNE 2018 2017 2018 2017³

North America 348 401 16.2% 16.7% UK 110 112 13.2% 13.8% Western Continental Europe 136 153 10.3% 12.4% Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 227 216 12.3% 11.2% Total 821 882 13.3% 13.8%

WPP plc 14 1 Figures before goodwill and intangibles charges, gains/losses on step-ups, gains/losses on disposals of subsidiaries and investments, investment write-downs, share of exceptional gains/losses of associates, restructuring costs and revaluation of financial instruments 2 Headline PBIT as a percentage of revenue less pass-through costs margin 3 2017 headline PBIT margin restated for the implementation of IFRS 15

Headline PBIT and Margin by Region

2018 INTERIM RESULTS

HEADLINE PBIT¹ £M HEADLINE PBIT MARGIN² HALF YEAR TO 30 JUNE 2018 2017 2018 2017³

Advertising, Media Investment Management 381 432 14.4% 15.2% Data Investment Management 112 129 11.9% 13.0% Public Relations & Public Affairs 85 80 15.5% 14.0% Brand Consulting, Health & Wellness and Specialist Communications 243 241 12.1% 12.3% Total 821 882 13.3% 13.8%

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Headline PBIT and Margin by Sector

2018 INTERIM RESULTS

1 Figures before goodwill and intangibles charges, gains/losses on step-ups, gains/losses on disposals of subsidiaries and investments, investment write-downs, share of exceptional gains/losses of associates, restructuring costs and revaluation of financial instruments 2 Headline PBIT as a percentage of revenue less pass-through costs margin 3 2017 headline PBIT margin restated for the implementation of IFRS 15

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WPP AGENCY INCUMBENT ACCOUNT OFFICE BILLINGS $M

MediaCom PUB/OMC Mars Global 930 Wavemaker/Mindshare DEN Mondelez EMEA/AP 500 MediaCom DEN Sky Europe 425 MediaCom DEN/PUB Adidas Global 300 Essence PUB T-Mobile N America 274 MediaCom IND Hotels.com N America 175 Wavemaker DEN Danone N America 118 Wavemaker/Y&R IND Altice USA 110 Team Amplify IPG Bose Global 80 MediaCom PUB Ally Financial USA 70 MediaCom PUB Hilton Hotels USA 68 Mindshare OMC Unilever India 65 MediaCom/Y&R OMC Office Depot NAFTA 62 Wavemaker OMC Adobe Global 55 Wavemaker MediaCom Yum! Brands Canada 50¹

Trade Estimates of Major Client Wins

Shaded are wins since Q1, underlined are wins since 1 July 1 Internal transfer of business

2018 INTERIM RESULTS

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Trade Estimates of Major Client Losses

WPP AGENCY WINNING AGENCY ACCOUNT OFFICE BILLINGS $M

Mindshare OMC HSBC Global 400 Wavemaker PUB Campbell Soup Co. USA, ANZ, Indonesia 189 Wavemaker PUB Marriott Global 140 Grey N/A Revlon Global 110 Grey N/A Ally Financial USA 87 MediaCom IPG Revlon Global 84 MediaCom PUB P&G Australia 80 JWT IPG Edgewell Global 50 MediaCom Wavemaker Yum! Brands Canada 50¹

2018 INTERIM RESULTS

Shaded are losses since Q1, underlined are losses since 1 July 1 Internal transfer of business

Internal Estimates of Net New Business Wins: Second Quarter and Year to Date

2018 INTERIM RESULTS 2018 Second Quarter 2018 YTD $M Creative Media Total Total

Advertising 386 629 1,015 2,271 Other Businesses 504

• 504

919 2018 890 629 1,519 3,190

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HALF YEAR TO 30 JUNE 2018 £M 2017 £M

Operatin ing pr profit 842 842 724 724 Gains on disposal & remeasurement¹ (189) (6) Non-cash compensation 42 51 Depreciation & amortisation charges 127 134 Amortisation of acquired intangibles and impairment 84 98 Net interest paid & similar charges (50) (61) Tax paid (251) (254) Net ca cash generation 605 605 686 686

Cash Flow

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2018 INTERIM RESULTS

1 Being net amount of gains/losses on step-ups, gains/losses on disposals of subsidiaries and investments, and investment write downs

HALF YEAR TO 30 JUNE 2018 £M 2017 £M

Net ca cash generation 605 605 686 686 Capital expenditure (178) (120) Net disposals/(acquisitions) 295 (241)

• Disposal proceeds

469 6

• Net initial payments¹

(136) (185)

• Earnout payments/loan note redemptions

(38) (62)

Other (27) (15) Net cash inflow be before dis distributio ions 695 695 310 310 Share buy-backs (201) (290) Net ca cash inflow be before NWC changes 494 494 20 20

Uses of Cash Flow

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2018 INTERIM RESULTS

1 Net initial payments are net of cash acquired, and includes other investments and associates

Disposal proceeds

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2018 £M

Globant 254 Imagina (return of capital from associate) 108 Full Screen 45 Other 62 Ha Half lf Yea ear to

• 30

30 June 469 469 AppNexus 169

• Oh!media

38 Yea ear to

• Da

Date 676 676

2018 INTERIM RESULTS

HALF YEAR TO 30 JUNE 2018 £M 2017 £M VARIANCE £M

YTD average net debt on constant currency basis (4,979) (4,706) (273) YTD average net debt on reportable basis (4,979) (4,811) (168) Net debt at 30 June on constant currency basis (4,632) (4,716) 84 Net debt at 30 June on reportable basis (4,632) (4,669) 37

Net debt at 31 July on constant currency basis (5,038) (5,546) 508 Net debt at 31 July on reportable basis (5,038) (5,518) 480

Headline finance costs (86) (89) 3 In Interest co cover on

• n hea

headline PBI PBIT 9.6 9.6x 10.0 10.0x

• Headline EBITDA

948 1,016 (68) Rolling 12 month headline EBITDA 2,466 2,546 (80) Roll lling average ne net de debt/headli line EBITDA¹ 2.1 2.1x 1.9 1.9x

• Net Debt – 30 June 2018

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2018 INTERIM RESULTS

1 Average net debt/headline EBITDA for 12 months to 30 June

TARGET H1 2018 H1 2017 FY 2017

Acquisitions (excluding earnouts)¹: Gross £300-£400m £136m £185m £326m Less proceeds

• £(469m)

£(6m) £(296m) Net (disposals)/acquisitions

• £(333m)

£179m £30m Share buy-backs: % of issued share capital

• 2%-3%

£201m 1.3% £290m 1.3% £504m 2.5%

Balance Sheet

Average net debt at 2018 exchange rates

• £5.0bn

£4.7bn £5.1bn² Headroom: Undrawn facilities & surplus cash

• £3.6bn

£3.2bn £3.2bn

Uses of Free Cash Flow

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Revised target range of average net debt/EBITDA ratio lowered to 1.5-1.75x, to achieve over next 12–18 months.

2018 INTERIM RESULTS

1 Acquisitions are initial payments, net of cash acquired and disposal proceeds, and include other investments and associates 2 FY 2017 average net debt stated at 2017 actual exchange rates

Outlook

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• Financial guidance for full year 2018 reflects first half revenue less pass-through costs growth and second

quarter revised forecast: – Like-for-like revenue and revenue less pass-through costs growth similar to first half. – Target full year headline PBIT margin similar to first half decline of 0.4 margin points on a like-for-like basis.

2018 INTERIM RESULTS

THE FUTURE

WPP plc 25

2018 INTERIM RESULTS

How We See the World

• Continued growth in demand from clients for marketing and communication services, as clients need to:

– Drive their top-line growth. – Build and manage direct customer relationships. – Transform their customer experiences. – Sell in a multi-channel environment.

• However, we need to recognise the challenges facing our industry:
• 1. Structural rather than cyclical shifts in the market as clients react to the new environment.
• 2. WPP and consulting companies starting to compete in the faster-growing segments.
• 3. Amazon, Facebook, Google et al. competing for talent, client attention and seeking more direct

relationships.

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2018 INTERIM RESULTS

Path to Growth for WPP

• New vision for WPP: where we will grow and invest.
• Focus on our clients –provide faster, more agile, more effectively integrated solutions.
• Continue to simplify our organisation to better position it for growth:

– easier for clients to access our talent, creativity and capabilities. – easier for us to manage. – more efficient and effective through co-locations, shared services, global platforms.

• Embed data and technology much more deeply into our offer –while retaining our creative edge.
• Invest in talent that represents our changing world.
• Evaluate the shape of the overall portfolio to maximise share owner value and release capital.
• Strategy review by year end –including actions that we will be taking to better position the business for growth and to

address under-performing units and detail any restructuring costs that will be necessary as well as the associated benefits.

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2018 INTERIM RESULTS

Winning New Business Through Improved Client Focus

2018 INTERIM RESULTS

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Reshaping and Simplifying our Portfolio

DISPOSALS/REALIGNMENTS

• AppNexus
• Dentsu JVs: - Japan, Malaysia, Singapore, Taiwan,

Thailand and Vietnam

• FullSix
• Globant
• Grey Belgrade
• Imagina (return of capital from associate)
• Maxx Marketing
• oOh!media
• PXP
• Rediffusion JVs: - India
• Teledirect

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ACQUISITIONS

• Gorilla -(Wunderman)
• HZ -(Burson Cohn & Wolfe)

2018 INTERIM RESULTS

Conclusion

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• Business momentum continues to improve slowly: first quarter of like-for-like revenue less pass-

through costs growth in a year .

• Listening to clients and people on how best to evolve our offer and strategy.
• Win rate has improved and we are growing relationships in new clients and areas – but challenges

remain as normal.

• Key priorities remain: creative agencies, data investment management and North America.
• Strategy update by year end.

2018 INTERIM RESULTS

Other Financial Information

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HARD COPY ONLY

Unaudited IFRS Income Statement

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HALF YEAR TO 30 JUNE 2018 £M 2017¹ £M Δ REPOR EPORTED Δ CONS NSTANT CU CURRENCY CY Revenue 7,493 7,650

• 2.1%

2.9% Gross profit 1,274 1,368

• 6.9%
• 2.2%

Ope peratin ing pr prof

• fit

it pr pre excep ceptio iona nal l & goo

• odw

dwill ill/in /intangib ible les² 783 783 836 836

• 6.

6.3% 3%

• 1.

1.6% 6% Net exceptional gain/(loss) 143 (14)

• Goodwill/intangible charges

(84) (98) 14.1% 13.5% Ope peratin ing pr prof

• fit

it 842 842 724 724 16 16.2% 2% 22 22.5% 5% Income from associates 38 46

• 18.4%
• 15.3%

Share of associate exceptionals (29) 14

• PB

PBIT 851 851 784 784 8. 8.6% 6% 14 14.5% 5% Net finance costs (5) (5)

• 2.1%
• Prof
• fit

it be befor

• re tax

846 846 779 779 8. 8.6% 6% 14 14.2% 2% Tax (141) (145) 3.1%

• 3.1%

Prof

• fit

it after r tax 705 705 634 634 11 11.3% 3% 16 16.8% 8% Non-controlling interests (33) (38) 12.0% 9.0% Attrib ributable le to

• shar

share owne ners 672 672 596 596 12 12.8% 8% 18 18.4% 4% Repo port rted dilut diluted d EPS EPS 53 53.4p 4p 46 46.6p 6p 14 14.6% 6% 20 20.3% 3%

1 2017 revenue and revenue less pass-through costs restated by £247m and £14m respectively for the implementation of IFRS 15 2 Figures before goodwill and intangibles charges, gains/losses on step-ups, gains/losses on disposals of subsidiaries and investments, investment write-downs, share of exceptional gains/losses of associates, restructuring costs and revaluation of financial instruments

2018 INTERIM RESULTS

Net Exceptional Gain

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HALF YEAR TO 30 JUNE 2018 £M

Gain on disposals of investments and subsidiaries (Globant £185m) 190 Restructuring costs (46) Investment write-downs (1) Net exce ceptional gain in 143 143 Share of associate exceptionals (29) Net exce ceptional gain in including asso associate exce ceptionals 114 114

2018 INTERIM RESULTS

Unaudited Headline¹ IFRS Income Statement

WPP plc 34 1 Figures before goodwill and intangibles charges, gains/losses on step-ups, gains/losses on disposals of subsidiaries and investments, investment write-downs, share of exceptional gains/losses of associates, restructuring costs and revaluation of financial instruments 2 2017 revenue and revenue less pass-through costs restated by £247m and £14m respectively for the implementation of IFRS 15 3 Headline PBIT before associates as a percentage of revenue less pass-through costs margin 4 Margin Points 5 Headline PBIT as a percentage of revenue less pass-through costs margin

HALF YEAR TO 30 JUNE 2018 £M 2017² £M Δ RE REPORTED Δ CON ONSTANT CURRENCY Δ LIKE-FOR FOR-LIKE Revenue 7,493 7,650

• 2.1%

2.9% 1.6% Revenue less pass-through costs 6,149 6,376

• 3.6%

1.4% 0.3% PBIT be before ass associates 783 783 836 836

• 6.3

6.3%

• 1.6

1.6% Income from associates 38 46

• 18.4%
• 15.3%

PBIT 821 821 882 882

• 7.0

7.0%

• 2.3

2.3% Net finance costs (86) (89) 3.0% 0.5% Prof

• fit

t be before tax 735 735 793 793

• 7.4

7.4%

• 2.5

2.5% Tax at 22.5% (2017 - 22.0%) (165) (174) 5.2% 0.1% Prof

• fit

t aft fter tax 570 570 619 619

• 8.0

8.0%

• 3.2

3.2% Non-controlling interests (33) (37) 12.0% 9.0% Attr trib ibutable to

• sh

share own wners 537 537 582 582

• 7.8

7.8%

• 2.8

2.8% Dilu iluted EP EPS 42 42.6 .6p 45 45.4 .4p

• 6.2

6.2%

• 1.3

1.3% PBIT be before ass associates mar argin in³ 12 12.8% .8% 13 13.1% .1%

• 0.4⁴
• 0.4⁴
• 0.3⁴

PBIT margin⁵ 13.3% .3% 13.8% .8%

• 0.5⁴
• 0.5⁴
• 0.4⁴

EBITDA 948 1,016

• 6.7%
• 1.9%

2018 INTERIM RESULTS

Revenue Less Pass-Through Costs Growth by Country

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REVENUE LESS PASS-THROUGH COSTS GROWTH¹ TOP COUNTRIES

More than 10% Argentina, South Korea 5% to 10% Brazil, Mainland China, Colombia, Japan, Mexico, Poland, Sweden 0% to 5% Greater China², Denmark, France, Germany, Netherlands, India, Italy, Norway, Spain, South Africa, Thailand, Turkey, UK Less than 0% Australia, Belgium, Canada, Dubai, Indonesia, Russia, Singapore, Switzerland, USA 2018 INTERIM RESULTS

1 Like-for-like growth vs prior year 2 Includes Hong Kong and Taiwan

Revenue Less Pass-Through Costs Growth by Category

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REVENUE LESS PASS-THROUGH COSTS GROWTH¹ CATEGORIES

More than 10% Retail 5% to 10% Electronics 0% to 5% Automotive, Media & Entertainment, Travel & Airline Less than 0% Computers, Drinks, Financial Services, Food, Government, Oil, Personal Care & Drugs, Telecommunications 2018 INTERIM RESULTS

1 Like-for-like growth vs prior year

Effects of Currency

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HALF YEAR TO 30 JUNE 2018 2017 STERLING STRONGER/(WEAKER)

US$ 1.38 1.26 10% € 1.14 1.16

• 2%

¥ 150 141 6% Chinese Renminbi 8.8 8.7 1% Brazilian Real 4.71 4.00 18% Australian $ 1.78 1.67 7% Canadian $ 1.76 1.68 5% Indian Rupee 90 83 8% Singapore $ 1.83 1.77 3% Russian Rouble 81.8 73.0 12% South African Rand 16.9 16.6 2%

• Currency movements

accounted for 5.0% decrease revenue less pass-through costs.

• Reflects strengthening
• f £ sterling against

most currencies.

2018 INTERIM RESULTS

Debt Maturity Profile £m at 30 June 2018

Weighted Average Coupon 3.0% Weighted Average Maturity 8.9 years Available Liquidity £3,576m

£ TOTAL CREDIT £ TOTAL DRAWN

£ bonds £400m (2.875% Sep ’46) 400 400 US bond $500m (5.625% Nov ’43) 379 379 US bond $272m (5.125% Sep ’42) 206 206 Eurobonds €600m (1.625% Mar ’30) 531 531 Eurobonds €750m (2.25% Sep '26) 664 664 Eurobond €500m (1.375% Mar ‘25)/£444m Swap1 444 444 US bond $750m (3.75% Sep '24) 568 568 Eurobonds €750m (3.0% Nov ’23) 664 664 US bond $500m (3.625% Sep ’22)2 379 379 Eurobond €250m (3m EURIBOR + 0.45% Mar ’22) 221 221 US bond $812m (4.75% Nov ’21)3 616 616 £ bonds £200m (6.375% Nov ’20) 200 200 Eurobonds €250m (3m EURIBOR + 0.32% May ’20) 221 221 Eurobonds €600m (0.75% Nov ’19) 531 531 Debt Facilities 6,024 6,024 Bank revolver4 WPP ($2,500m Jul’21) 1,895 376 Bank revolver4 WPP AUNZ (A$520m Mar’19) 291 231 Net cash, overdrafts & other adjustments – (1,997) Total Borrowing Capacity / Net Debt 8,210 4,634

100 200 300 400 500 600 700 Exchange Rates £/$ 1.3194 £/€ 1.1299 £/A$ 1.7844 1 Swapped to £444m at 2.61% 2 Swapped to 6 month $Libor + 1.52% 3 Swapped to 6 month $Libor + 2.34% 4 These instruments are subject to financial covenants

2018 INTERIM RESULTS

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Acquisition Highlights Since 1 April

Gorilla¹ – USA (Wunderman) Gorilla Group is an award-winning e-commerce specialist based in USA. Clients include American Hotel Register Company, Gates Industrial Corporation and protein bar manufacturer RXBAR. The agency employs about 370 employees and is based in Chicago with offices in USA, Canada, Poland and Ukraine. Gorilla Group works with enterprise B2B and direct-to-consumer brands across the manufacturing, distribution, apparel, retail, health & beauty, food and beverage sectors. With a strong history in strategy, experience design, technology enablement, marketing, and managed services, Gorilla Group creates high-performing commerce solutions that enable clients to successfully evolve and compete in the digital economy. Hirshorn-Zuckerman Design Group (“HZ”)¹ – USA (BursonCohn & Wolfe) HZ is a branding, content and design agency based in USA. Clients include Hilton Worldwide, Salesforce and Tishman Speyer’s Rockefeller Center. The agency employs nearly 200 people and is based in Rockville, MD, with offices in Baltimore, Los Angeles, New York City and Washington, DC. It was founded in 1987. Offerings include a full spectrum of multichannel digital design and development, mobile activation, social media, brand and identity creation, content, film and video production, search marketing (SEO/SEM), data and analytics as well as and integrated media solutions. Its client base spans the consumer, hospitality, food and beverage, education, B2B, real estate, sports and entertainment and technology industries.

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2018 INTERIM RESULTS

1 Q3 acquisition

Acquisition Highlights Since 1 April

Y&R/Wunderman/Sudler & Hennessey¹ - SE Asia WPP has acquired full ownership of Y&R and Wunderman joint venture agency assets across Southeast Asia and Taiwan, and Dentsu Sudler & Hennessey in Japan, following a share swap transaction with Dentsu Inc. The transaction includes Y&R in Malaysia, Singapore, Thailand and Vietnam; Wunderman in Taiwan and Thailand; and Dentsu Sudler & Hennessey (to be rebranded as Sudler) in Japan.

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2018 INTERIM RESULTS

1 Step-up

2018 Interim Results

London

4 SEPTEMBER 2018

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