WPP

WPP is an extraordinary company with agency brands with long histories. Business model is to make clients successful. Performance not where needed, need unified growth strategy. Already made decisive changes with new business success in 2025 Q4 and 2026. Team spent 6 months validating thesis. Strategy update includes new mission, 4 key objectives, 3-phase execution plan. 8 core pillars including WPP Open as agentic marketing platform. Media and data positioned at core, next-generation production and creative capabilities established, enterprise solutions elevated. Organizational changes to become simpler and more integrated, including 4 operating units, empowering global client leaders, new client solution architects, integrated growth operations, and embedding high-performance culture.

2026 like-for-like revenue less pass-through costs expected to be mid- to high single digits in first half with improving trajectory in second half. Headline operating profit margin anticipated in 12% to 13% range. Adjusted operating cash flow before working capital expected to be GBP 800 million to GBP 900 million including cash restructuring charges. Average leverage metrics expected to move up further in 2026 but average net debt expected to remain broadly stable, with proceeds from asset disposals used to strengthen balance sheet.

Like-for-like revenue less pass-through costs fell 5.4% for the full year. Headline operating margin was 13%. Media was particularly weighed on by gross client losses. New business wins in 2024 and '25 contributed progressively. Spend by existing clients was more cautious with higher volatility, weighing most heavily on Ogilvy. By segment, media was a major negative impact, with new business wins in 2024 and '25 contributing, but in-year wins lower than expected. Geography-wise, U.S. and U.K. were affected, and client sector-wise, CPG and TME were impacted. Revenue contribution % details in appendix.

Market volatility, economic headwinds, client spending volatility, potential for not being the best owner of some assets, challenges in stabilizing business and achieving growth targets, need to keep up with rapid industry change and talent retention challenges.

Q: Laura Metayer from Morgan Stanley on differentiation, JLR win revenue model, Enterprise Solutions example.

A: Cindy, Brian, Johnny, Jeff Geheb answered.

Q: Nicolas Langlet from BNP Paribas on existing client business, WPP Open Pro rollout, GBP 500 million cost reduction.

A: Joanne, Cindy answered.

Q: Adrien de Saint Hilaire from Bank of America on business wins factors, data identity graph, creative revenue attrition.

A: Brian, Cindy answered.

Q: Julien Roch from Barclays on production industry, organic growth ambition, portfolio P&L.

A: Joanne, Cindy answered.

Q: Annick Maas from Bernstein on nimbleness, AI staff impact, portfolio disposal.

A: Cindy, Joanne answered.

Q: Anna Patrice from Berenberg on remuneration evolution, M&A.

A: Joanne, Cindy answered.

Q: Jerome Bodin from ODDO BHF on WPP Creative, HR mobility, disposal.

A: John, Cindy answered.

Q: Richard Kramer from Arete Research on WPP Open Pro competition, principal trading.

A: Cindy, Brian answered.

Q: Questions on leverage, transition from Board to CEO, Enterprise Solutions.

A: Joanne, Cindy, Jeff answered