WPP Capital Markets Day 2024

WPP (NYSE: WPP) is today announcing the next phase of its strategy to capture the opportunities offered by AI, maximise the potential of creative transformation and deliver faster growth, higher margins and improved cash generation.

Four strategic pillars support these goals:

1. Lead through AI, data and technology

• Capitalise on WPP’s lead in artificial intelligence built on: the acquisition of Satalia in 2021; organic investment in AI, client technology and data; and deep partnerships with Adobe, Google, IBM, Microsoft, Nvidia and OpenAI
• Drive improved returns to clients through a set of AI-enabled services and tools, delivered by WPP Open, our common technology platform, and powered by proprietary AI models
• Fuel AI services with WPP’s proprietary data sets together with client, platform and market-level data to improve marketing performance for clients
• Ensure appropriate safeguards for client information, brand safety, copyright and ethics
• Expand the reach of our AI services through WPP Open, with more than 28,000 current users across WPP and adoption by key clients including L’Oréal and Nestlé

2. Unlock the full potential of creative transformation to drive growth

• Expand our client relationships by further leveraging WPP’s global scale, integrated offer in creative, media, production and PR, and capabilities in growth areas such as commerce, influencer marketing and retail media to capture share in a growing market

3. Build world-class, market-leading brands

• Lead the industry through six powerful agency networks – AKQA, Ogilvy, VML, Hogarth, GroupM and Burson – which now represent close to 90% of WPP’s revenue less pass-through costs
• Realise the opportunities from VML as the world’s largest integrated creative agency and leverage GroupM’s simplified operating model and scale as the world’s largest media agency
• Establish Burson as a leading global strategic communications agency bringing together BCW and Hill & Knowlton

4. Execute efficiently to drive strong financial returns

• Deliver growth and structural cost savings as a result of the creation of VML and Burson and simplification of GroupM, unlocking scale advantages and further efficiency savings. Structural savings to deliver annualised net cost savings of c.£125m in 2025, with 40-50% of that saving expected to be achieved in 2024. Associated restructuring cost of c.£125m in 2024
• Target c.£175m gross savings from efficiency opportunities across both back office and commercial delivery which will be used to invest in growth and support delivery of our medium-term margin target

This strategy will be underpinned by a disciplined approach to capital allocation with continued organic investment, a progressive dividend policy and a disciplined approach to M&A supported by a strong balance sheet and an investment grade credit rating.