WPP Investor Day Presentation Deck
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WPP'S FINANCIAL PLAN- SUMMARY
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ACCELERATED GROWTH
THROUGH INVESTMENT
• Targeting sector opportunities eg
CPG, Tech, Healthcare
Accelerating through growth in
Communications and expanding
Experience, Commerce and
Technology from 25% today to 40%
by 2025
Innovative engines of growth in
media eg Xaxis, Finecast
• Capturing the opportunity in higher
growth markets eg Brazil, China,
India
2021-2022 - recovery
2023 onwards - accelerated growth
O 1-2% core business growth
potential medium-term
O
c 1.5% incremental growth from
investing c£400m p.a. in
technology, talent and incentives
O 0.5-1.0% incremental growth
from investing £200-400m p.a. in
high growth, scalable
acquisitions
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GROWTH FUNDED AND MARGINS
IMPROVED THROUGH GROUP-WIDE
TRANSFORMATION PROGRAMME
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Plans in place to target £600 million of annual
gross-cost savings by 2025
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Annual net cost savings of £200 million expected
by 2025 after £400 million reinvestment in
growth
• Savings phased over the next five years
Key areas of efficiency:
o Operating model savings (e.g. new ways of
working, consolidating data and technology
investment, simplified country structure,
stream-lined organisational structures);
Efficiency savings (Procurement,
Real estate); and
o Functional Effectiveness & Shared Service
savings (Legal, Finance, HR, & IT)
o Efficiencies unlocked by significant capital
investment in our campus programme, ERP
systems and shared service centres
Efficiency measures will also enhance
effectiveness: improving business insight and
talent management, leaving agencies free to
focus on growth
CLEAR CAPITAL
ALLOCATION FRAMEWORK
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Capex £450-500m p.a. expected in
2021 and 2022, reverting to £300-
350m p.a. from 2023 to fund cost
savings programme
Intention to pay a progressive
dividend at around 40% pay-out
ratio
£200-400m p.a. for high-growth,
scalable M&A
Average net debt/EBITDA
maintained in target range 1.5-
1.75x
Kantar share buyback programme
to resume in 2021
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ATTRACTIVE
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FINANCIAL OUTCOMES
• Rapid post-COVID recovery: LFL
revenue less pass through costs is
anticipated to grow mid-single
digits over each of the next two
years, recovering to 2019 levels
through 2022.
● Accelerated medium-term growth:
revenue less pass through costs
anticipated to grow 3-4% from
2023 onwards
Improved profitability: targeting
15.5%-16.0% operating margin in
2023
Double-digit EPS growth over the
next three years
WPP
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