REG - WPP PLC - 2015 Interim Results <Origin Href="QuoteRef">WPP.L</Origin> - Part 4

WPPAnnouncement

26/08/2015 07:01

- Part 4: For the preceding part double click  ID:nRSZ0851Xc 

                      26.4    1,892.0                      
                                                                                                                                          
 Reported earnings per share3                                                                                                             
 Basic earnings per ordinary share     60.6¢                          33.9¢                          78.8    103.2¢                       
 Diluted earnings per ordinary share   59.6¢                          33.1¢                          80.1    100.9¢                       
                                                                                                                                          
 Headline earnings per share3                                                                                                             
 Basic earnings per ordinary share     47.2¢                          36.5¢                          29.3    108.6¢                       
 Diluted earnings per ordinary share   46.4¢                          35.7¢                          30.0    106.2¢                       
 
 
1 The unaudited consolidated income statement above is presented in reportable Euros for information purposes only and has
been prepared assuming the Euro is the reporting currency of the Group, whereby local currency results are translated into
Euros at actual monthly average exchange rates in the periods presented. Among other currencies, this includes an average
exchange rate of E1.3659 to the pound for the period ended 30 June 2015 (period ended 30 June 2014: E1.2176; year ended 31
December 2014: E1.2410). 
 
2 Margin points. 
 
3 The basis of the calculations of the Group's earnings per share and headline earnings per share are set out in note 9 of 
 
Appendix 1. 
 
Appendix 4: Interim results for the six months ended 30 June 2015 in 
 
reportable Japanese Yen1 
 
Unaudited illustrative condensed consolidated interim income statement for the six months ended 30 June 2015 
 
 ¥ billion                             Six months ended 30 June 2015  Six months ended 30 June 2014  +/(-)%  Year ended 31 December 2014  
 Billings                              4,251.0                        3,772.6                        12.7    8,065.8                      
                                                                                                                                          
 Revenue                               1,071.6                        935.1                          14.6    2,013.9                      
 Direct costs                          (146.7)                        (115.8)                        (26.7)  (256.0)                      
 Net sales                             924.9                          819.3                          12.9    1,757.9                      
 Operating costs                       (778.2)                        (728.2)                        (6.9)   (1,490.4)                    
 Operating profit                      146.7                          91.1                           61.0    267.5                        
 Share of results of associates        2.9                            4.9                            (40.8)  10.8                         
 Profit before interest and taxation   149.6                          96.0                           55.8    278.3                        
 Finance income                        6.8                            7.4                            (8.1)   16.8                         
 Finance costs                         (20.2)                         (22.9)                         11.8    (46.0)                       
 Revaluation of financial instruments  (4.2)                          3.7                            -       9.2                          
 Profit before taxation                132.0                          84.2                           56.8    258.3                        
 Taxation                              (20.2)                         (16.3)                         (23.9)  (53.6)                       
 Profit for the period                 111.8                          67.9                           64.7    204.7                        
                                                                                                                                          
 Attributable to:                                                                                                                         
 Equity holders of the parent          105.3                          62.5                           68.5    191.7                        
 Non-controlling interests             6.5                            5.4                            (20.4)  13.0                         
                                       111.8                          67.9                           64.7    204.7                        
                                                                                                                                          
 Headline PBIT                         123.6                          106.5                          16.1    297.2                        
 Net sales margin                      13.4%                          13.0%                          0.42    16.9%                        
 Headline PBT                          110.2                          91.0                           21.1    268.0                        
                                                                                                                                          
 Reported earnings per share3                                                                                                             
 Basic earnings per ordinary share     81.3¥                          47.4¥                          71.5    146.6¥                       
 Diluted earnings per ordinary share   79.9¥                          46.3¥                          72.6    143.3¥                       
                                                                                                                                          
 Headline earnings per share3                                                                                                             
 Basic earnings per ordinary share     63.1¥                          51.2¥                          23.2    153.8¥                       
 Diluted earnings per ordinary share   62.0¥                          50.0¥                          24.0    150.4¥                       
 
 
1 The unaudited consolidated income statement above is presented in reportable Japanese Yen for information purposes only
and has been prepared assuming the Japanese Yen is the reporting currency of the Group, whereby local currency results are
translated into Japanese Yen at actual monthly average exchange rates in the periods presented. Among other currencies,
this includes an average exchange rate of ¥183.3327 to the pound for the period ended 30 June 2015 (period ended 30 June
2014: ¥170.9414; year ended 31 December 2014: ¥174.1569). 
 
2 Margin points. 
 
3 The basis of the calculations of the Group's earnings per share and headline earnings per share are set out in note 9 of 
 
Appendix 1. 
 
Average net debt 
 
Average net debt is calculated as the average daily net borrowings of the Group. Net debt at a period end is calculated as
the sum of the net borrowings of the Group, derived from the cash ledgers and accounts in the balance sheet. 
 
Billings and estimated net new billings 
 
Billings comprise the gross amounts billed to clients in respect of commission-based/fee-based income together with the
total of other fees earned. Net new billings represent the estimated annualised impact on billings of new business gained
from both existing and new clients, net of existing client business lost. The estimated impact is based upon initial
assessments of the clients' marketing budgets, which may not necessarily result in actual billings of the same amount. 
 
Constant currency 
 
The Group uses US dollar-based, constant currency models to measure performance. These are calculated by applying budgeted
2015 exchange rates to local currency reported results for the current and prior year. This gives a US dollar - denominated
income statement which excludes any variances attributable to foreign exchange rate movements. 
 
Free cash flow 
 
Free cash flow is calculated as headline operating profit before non-cash charges for share-based incentive plans,
depreciation of property, plant and equipment and amortisation of other intangible assets, including dividends received
from associates, interest received, investment income received, proceeds from the issue of shares, and proceeds from the
disposal of property, plant and equipment, less corporation and overseas tax paid, interest and similar charges paid,
dividends paid to non-controlling interests in subsidiary undertakings, purchases of property, plant and equipment and
purchases of other intangible assets. 
 
Net sales/Net sales margin 
 
Net sales are revenue less direct costs. Net sales margin is calculated as headline PBIT (defined below) as a percentage of
net sales. The Group has previously used the terms gross margin and gross profit to refer to net sales. 
 
Headline earnings 
 
Headline PBT less headline tax charge and non-controlling interests. 
 
Headline operating profit/Headline PBIT 
 
Profit before finance income/costs and revaluation of financial instruments, taxation, gains/losses on disposal of
investments and subsidiaries, investment write-downs, goodwill impairment and other goodwill write-downs, amortisation and
impairment of acquired intangible assets, Group restructuring costs, share of exceptional gains/losses of associates and
gains/losses on remeasurement of equity interest on acquisition of controlling interest. 
 
Headline PBT 
 
Profit before taxation, gains/losses on disposal of investments and subsidiaries, investment write-downs, goodwill
impairment and other goodwill write-downs, amortisation and impairment of acquired intangible assets, Group restructuring
costs, share of exceptional gains/losses of associates, gains/losses arising from the revaluation of financial instruments,
and gains/losses on remeasurement of equity interest on acquisition of controlling interest. 
 
Headline tax charge 
 
Taxation excluding tax charge/deferred tax relating to gains on disposal of investments and subsidiaries, net deferred tax
credit in relation to the amortisation of acquired intangible assets and other goodwill items and tax credit/deferred tax
relating to restructuring costs. 
 
Operating margin 
 
Headline operating profit as a percentage of net sales. 
 
Pro forma ('like-for-like') 
 
Pro forma comparisons are calculated as follows: current year, constant currency actual results (which include acquisitions
from the relevant date of completion) are compared with prior year, constant currency actual results, adjusted to include
the results of acquisitions for the commensurate period in the prior year. The Group uses the terms 'pro forma' and
'like-for-like' interchangeably. 
 
 1  Percentage change in reported sterling 
 
 2  Percentage change at constant currency rates 
 
 3  Headline earnings before interest, tax, depreciation and amortisation 
 
 4  Headline profit before interest and tax 
 
 5  Headline profit before interest and tax, as a percentage of net sales 
 
 6  Margin points 
 
 7  Diluted earnings per share based on headline earnings 
 
 8  Diluted earnings per share based on reported earnings 
 
 9  Percentage change at constant currency exchange rates 
 
 10  Like-for-like growth at constant currency exchange rates and excluding the effects of acquisitions and disposals 
 
 11  Based on final quarter of the year to 31 March 2015 and first quarter of the current year 
 
 12  Short and long-term incentives and the cost of share-based incentives 
 
 13  Excludes direct costs, goodwill impairment, amortisation and impairment of acquired intangibles, investment gains and
write-downs, gains on re-measurement of equity interests on acquisition of controlling interest and restructuring costs 
 
 14  Percentage change at constant currency rates 
 
 15  Like-for-like growth at constant currency exchange rates and excluding the effects of acquisitions and disposals 
 
 16  Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 
 
 17  Bangladesh, Egypt, Indonesia, South Korea, Mexico, Nigeria, Pakistan, Philippines, Vietnam and Turkey - the Group has
no operations in Iran (accounting for over $460 million revenue, including associates, in the first half) 
 
 18  Brazil, Russia, India and China (accounting for almost $1.3 billion revenue, including associates, in the first half) 
 
 19  Advertising, Media Investment Management 
 
 20  Data Investment Management 
 
 21  Public Relations & Public Affairs 
 
 22  Branding and Identity, Healthcare and Specialist Communications 
 
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