2. Macro
Environment
2010 2011 2012 2013 2014
P – US
elections (2.5)
Uk elections
(2.5)
E – 2008
economic
crash recovery
(4.7)
Fast BRIC
growth (3)
S- BRIC
education
rising (3)
Social media
consumption
(3)
T – iPad
release (3)
• P-Osama Bin
Laden
DEAD!!!
(4.5)
• P- Eygptian
revolution
(4)
• -End of Iraq
War (4)
• US
Budgetary
deadlock (3)
• Eurozone
crisis (3)
• UK Embassy
attack (5)
• E- Lehman
collapse (4)
• S- London
• P –
Uncertainty
over UK-EU (3)
• E – Fiscal crisis
2013 (4)
• S – cultivating
a theory of
mind (2)
• S - Winter
olympics (1)
• S Fifa World
Cup (1)
• P –
congressional
elections (2)
• E – Eurozone
(4)
• P –
Developments
in Middle-East
(5)
• P- UK refendem
(5)
• P- Ukraine (5)
• P – Japan v
China (5)
• T – tradional
media vs new
media (3)
• E-
exchange
rates (3)
• T- New
Media (2)
• E-
globalisatio
n (2)
4. Micro-
Environment
2009 2010 2011 2012 2013 2014
Value of Billings
(£)
42.684billion 44.792B £44.405B £42.609bn 46.2 billion
Value of
Revenue (£)
9.331billion 10.022B £10.4B £11,019bn 11.5 billion
Reported
Operating Profit
(£)
1.173billion 1.365B £1.5B £1.583bn 1.5 billion
5. Micro-
Environment
2009 2010 2011 2012 2013 2014
Revenue by
geography (%)
•North America
•UK
•Western/
Continental Europe
•Asia Pacific, Latin
America, Africa,
Middle East
NA – 35
UK – 12
WCE – 26
ASIA etc.- 27
NA 34
UK 12
WCE 25
ASIA 29
NA- 34%
uk – 12%
Western CE – 24%
Asia etc – 30%
North America –
34
Uk – 13
Western CE – 23
Asia etc. - 30
North America
34%
UK 14%
Western Europe
(22%)
Asia etc (30%)
Revenue by Sector
•Advertising &
Media Investment
Management
•Information insight
and consultancy
•PR and public
affairs
•Branding and
identity, health care
and specialist
communication
Ad – 40
Insight – 26
PR – 9
Branding - 25
• AD-41
• INSIGHT-25
• PR-9
• BRANDING-25
AD – 41%
Insight – 24%
PR - 9%
Branding – 26%
Ad – 42
Insight – 23
PR – 8
Branding - 27
Ad = 44%
Insight – TBC
PR - 8%
Branding – 26%
6. Key
Priorities
2010 2011 2012 2013 2014
Short Term:
Medium Term:
Long Term:
Continue to
emerge from
2008 financial
crisis a stronger
company
Build upon the
successful base
established
whilst
integrating
recent
acquisitions
effectively
Increase
geographic share
from the faster
growing markets
from 27% to 35-
40%
Increase share
revenues, new
media from 29%
to 35-40%
Maintain share of
more
measurable
marketing
EPS growth 10-15%
Revenue growth
5%
29-40% Emerging
markets
Increase share of
revenue by 35-40%
Increase consumer
insights and direct
digital and
interactive by more
than 50%
ST = Increase share
of revenues from
faster growing
markets from 40-
45%
ST = Increase the
share of revenue for
new media 40-45%
MT = maintain the
share of more
measureable
marketing services
at 50% of revenues
LT = achieve
horizontality
ensuring people
work together
Asia Pacific
middle
east
revenue
40-45%
New
media revs
40-45%
Digital
interactive
50%
7. WPP vs Global/UK 100 Companies (share price)
WPP
FTSE 100
WPP
FTSE 100
FTSE Global
100
