UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
____________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of January 2024
Commission File Number: 001-38303
______________________
WPP plc
(Translation of registrant's name into English)
________________________
Sea Containers, 18 Upper Ground
London, United Kingdom SE1 9GL
(Address of principal executive offices)
_________________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form
20-F X Form 40-F
___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ___
Note: Regulation S-T Rule 101(b)(1) only permits the
submission in paper of a Form 6-K if submitted solely to provide an
attached annual report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ___
Note: Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report
or other document that the registrant foreign private issuer must
furnish and make public under the laws of the jurisdiction in which
the registrant is incorporated, domiciled or legally organized (the
registrant’s “home country”), or under the rules
of the home country exchange on which the registrant’s
securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been
distributed to the registrant’s security holders, and, if
discussing a material event, has already been the subject of a Form
6-K submission or other Commission filing on EDGAR.
Forward-Looking Statements
In
connection with the provisions of the U.S. Private Securities
Litigation Reform Act of 1995 (the ‘Reform Act’), the
Company may include forward looking statements (as defined in the
Reform Act) in oral or written public statements issued by or on
behalf of the Company. These forward-looking statements may
include, among other things, plans, objectives, beliefs,
intentions, strategies, projections and anticipated future economic
performance based on assumptions and the like that are subject to
risks and uncertainties. These statements can be identified by the
fact that they do not relate strictly to historical or current
facts. They use words such as ‘aim’,
‘anticipate’, ‘believe’,
‘estimate’, ‘expect’,
‘forecast’, ‘guidance’,
‘intend’, 'may', ‘will’,
‘should’, ‘potential’,
‘possible’, ‘predict’,
‘project’, ‘plan’, ‘target’,
and other words and similar references to future periods but are
not the exclusive means of identifying such statements. As such,
all forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances that are beyond the
control of the Company. Actual results or outcomes may differ
materially from those discussed or implied in the forward-looking
statements. Therefore, you should not rely on such forward looking
statements, which speak only as of the date they are made, as a
prediction of actual results or otherwise. Important factors which
may cause actual results to differ include but are not limited to:
the impact of, epidemics or pandemics including restrictions on
businesses, social activities and travel; the unanticipated loss of
a material client or key personnel; delays or reductions in client
advertising budgets; shifts in industry rates of compensation;
regulatory compliance costs or litigation; changes in competitive
factors in the industries in which we operate and demand for our
products and services; changes in client advertising, marketing and
corporate communications requirements; our inability to realise the
future anticipated benefits of acquisitions; failure to realise our
assumptions regarding goodwill and indefinite lived intangible
assets; natural disasters or acts of terrorism; the Company’s
ability to attract new clients; the economic and geopolitical
impact of the Russian invasion of Ukraine; the risk of global
economic downturn, slower growth, increasing interest rates and
high and sustained inflation; supply chain issues affecting the
distribution of our clients’ products; technological changes
and risks to the security of IT and operational infrastructure,
systems, data and information resulting from increased threat of
cyber and other attacks; effectively managing the risks, challenges
and efficiencies presented by utilising Artificial Intelligence
(AI) technologies and partnerships in our business; the
Company’s exposure to changes in the values of other major
currencies (because a substantial portion of its revenues are
derived and costs incurred outside of the UK); and the overall
level of economic activity in the Company’s major markets
(which varies depending on, among other things, regional, national
and international political and economic conditions and government
regulations in the world’s advertising markets). In addition,
you should consider the risks described in Item 3D, captioned
“Risk Factors” in the company's 2022 Annual Report on
Form 20-F, which could also cause actual results to differ from
forward-looking information. In light of these and other
uncertainties, the forward-looking statements included in this
document should not be regarded as a representation by the Company
that the Company’s plans and objectives will be achieved.
Neither the Company, nor any of its directors, officers or
employees, provides any representation, assurance or guarantee that
the occurrence of any events anticipated, expressed or implied in
any forward looking statements will actually occur. The Company
undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
EXHIBIT INDEX
|
Exhibit
No.
|
Description
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|
1
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Capital Markets Day 2024 dated 30 January 2024, prepared by WPP
plc.
|
30 January 2024
CAPITAL MARKETS DAY 2024
Innovating to Lead
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.
Updated medium-term targets
●
3%+
LFL growth in revenue less pass-through costs
●
16-17%
headline operating profit margin
●
Adjusted
operating cash flow conversion of 85%+[1]
Previous medium-term targets, outlined at WPP's Capital Markets Day
in December 2020, were for 3-4% growth in revenue less pass-through
costs including an M&A benefit of 0.5-1.0% annually; with a
headline operating profit margin of 15.5-16.0%.
2023 expected out-turn and 2024 outlook
WPP will report 2023 results on February 22nd.
We expect to report results in line with our guidance ranges
with:
●
2023
LFL revenue less pass-through costs expected to be 0.9% consistent
with guidance given at Q3 2023 of 0.5-1.0%
●
2023
headline operating profit margin expected to be 14.8%, equivalent
to 15.0% on a constant currency basis, which is at the top end of
guidance of 14.8-15.0% (excluding the impact of
FX)
Looking ahead,
●
2024
LFL revenue less pass-through costs growth of
0-1%
●
2024
headline operating profit margin improvement of 20-40bps (excluding
the impact of FX)
●
Our
plans include annual cash investment of around £250m in
proprietary technology to support our AI and data
strategy
Mark Read, CEO of WPP, said:
"The past three years have demonstrated the power of brands,
creativity and investment in marketing to drive growth for clients
and to build significant value. Research demonstrates that those
companies with the strongest brands deliver the highest returns to
shareholders.
"AI is transforming
our industry and we see it as an opportunity not a
threat. We firmly believe that AI will enhance, not replace,
human creativity. We are already empowering our people with
AI-based tools to augment their skills, produce work more
efficiently and improve media performance, all of which will
increase the effectiveness of our work. We also see opportunities
to sell new AI-driven products and services to our clients and to
capture more growth in areas like
production.
"Our long-standing investments in AI, including our AI-powered
platform, WPP Open, and our acquisition in 2021 of Satalia, a
leading UK AI company, are at the heart of our competitive
offer. An ongoing annual investment of £250m in data
and technology to support our AI strategy is included in
our 2024 financial plans.
"While we had to navigate a more challenging environment in 2023,
we see strong future demand for our services and are confident we
can accelerate our growth over the medium-term.
"Today, the team and I look forward to demonstrating our commitment
to leadership through innovation and sharing our plans for improved
and sustained returns for our people, our clients, our communities
and our shareholders."
The Capital Markets Day for analysts and investors will take place
at our offices at Sea Containers House in London with presentations
beginning from 1pm (UK time) today. Investors and analysts who wish
to attend in person are required to pre-register by
emailing irteam@wpp.com.
The event will feature demonstrations of our AI capabilities along
with presentations from creative, production and media agencies,
and contributions from key clients and partners. A live stream of
the event will be available from 1pm (UK time) today at
www.wpp.com/investors and will subsequently be made available for
replay.
For further information:
Investors and analysts
Tom Waldron
+44 7788
695864
Anthony
Hamilton
+44 7464 532903
Caitlin
Holt +44
7392 280178
irteam@wpp.com
Media
Chris
Wade
+44 20 7282 4600
Richard
Oldworth,
+44 7710 130 634
Buchanan Communications
+44 20 7466 5000
press@wpp.com
wpp.com/investors
Cautionary statement regarding forward-looking
statements
This document contains statements that are, or may be deemed to be,
"forward-looking statements". Forward-looking statements give the
Company's current expectations or forecasts of future events. An
investor can identify these statements by the fact that they do not
relate strictly to historical or current facts.
These forward-looking statements may include, among other things,
plans, objectives, beliefs, intentions, strategies, projections and
anticipated future economic performance based on assumptions and
the like that are subject to risks and uncertainties. These
statements can be identified by the fact that they do not relate
strictly to historical or current facts. They use words such as
'aim', 'anticipate', 'believe', 'estimate', 'expect', 'forecast',
'guidance', 'intend', 'may', 'will', 'should', 'potential',
'possible', 'predict', 'project', 'plan', 'target', and other words
and similar references to future periods but are not the exclusive
means of identifying such statements. As such, all forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances that are beyond the control of the
Company. Actual results or outcomes may differ materially from
those discussed or implied in the forward-looking statements.
Therefore, you should not rely on such forward-looking statements,
which speak only as of the date they are made, as a prediction of
actual results or otherwise. Important factors which may cause
actual results to differ include but are not limited to: the impact
of, epidemics or pandemics including restrictions on businesses,
social activities and travel; the unanticipated loss of a material
client or key personnel; delays or reductions in client advertising
budgets; shifts in industry rates of compensation; regulatory
compliance costs or litigation; changes in competitive factors in
the industries in which we operate and demand for our products and
services; changes in client advertising, marketing and corporate
communications requirements; our inability to realise the future
anticipated benefits of acquisitions; failure to realise our
assumptions regarding goodwill and indefinite lived intangible
assets; natural disasters or acts of terrorism; the Company's
ability to attract new clients; the economic and geopolitical
impact of the Russian invasion of Ukraine; the risk of global
economic downturn, slower growth, increasing interest rates and
high and sustained inflation; supply chain issues affecting the
distribution of our clients' products; technological changes and
risks to the security of IT and operational infrastructure,
systems, data and information resulting from increased threat of
cyber and other attacks; the Company's exposure to changes in the
values of other major currencies (because a substantial portion of
its revenues are derived and costs incurred outside of the UK); and
the overall level of economic activity in the Company's major
markets (which varies depending on, among other things, regional,
national and international political and economic conditions and
government regulations in the world's advertising markets). In
addition, you should consider the risks described in Item 3D,
captioned "Risk Factors" in the Group's Annual Report on Form-20F
for 2022, which could also cause actual results to differ from
forward-looking information.
Neither the Company, nor any of its directors, officers or
employees, provides any representation, assurance or guarantee that
the occurrence of any events anticipated, expressed or implied in
any forward-looking statements will actually occur. Accordingly, no
assurance can be given that any particular expectation will be met
and investors are cautioned not to place undue reliance on the
forward-looking statements.
Other than in accordance with its legal or regulatory obligations
(including under the Market Abuse Regulation, the UK Listing Rules
and the Disclosure and Transparency Rules of the Financial Conduct
Authority), The Company undertakes no obligation to update or
revise any such forward-looking statements, whether as a result of
new information, future events or otherwise.
Any forward-looking statements made by or on behalf of the Group
speak only as of the date they are made and are based upon the
knowledge and information available to the Directors at the
time.
[1] Adjusted
operating cash flow conversion is calculated as headline EBITDA
plus non-cash compensation, less repayment of lease liabilities and
related interest, cash restructuring costs, capex and working
capital.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
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WPP
PLC
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|
(Registrant)
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Date:
30 January 2024.
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By:
______________________
|
|
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Balbir
Kelly-Bisla
|
|
|
Company
Secretary
|
Grafico Azioni WPP (NYSE:WPP)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni WPP (NYSE:WPP)
Storico
Da Gen 2024 a Gen 2025
