REG - WPP PLC - 2016 Interim Results <Origin Href="QuoteRef">WPP.L</Origin> - Part 4
24/08/2016 07:07
- Part 4: For the preceding part double click ID:nRSX9650Hc
66.9¢ (58.9) 137.5¢
Diluted earnings per ordinary share 27.2¢ 65.8¢ (58.7) 134.9¢
Headline earnings per share3
Basic earnings per ordinary share 56.7¢ 52.1¢ 8.8 145.2¢
Diluted earnings per ordinary share 56.0¢ 51.2¢ 9.4 142.5¢
1 The unaudited condensed consolidated income statement above is presented in reportable US Dollars for information
purposes only and has been prepared assuming the US Dollar is the presentation currency of the Group, whereby local
currency results are translated into US Dollars at actual monthly average exchange rates in the periods presented. Among
other currencies, this includes an average exchange rate of US$1.4330 to the pound for the period ended 30 June 2016
(period ended 30 June 2015: US$1.5239; year ended 31 December 2015: US$1.5288).
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 3: Interim results for the six months ended 30 June 2016 in
reportable Euro1
Unaudited illustrative condensed consolidated interim income statement for the six months ended 30 June 2016
E million Six months ended 30 June 2016 Six months ended 30 June 2015 +/(-)% Year ended 31 December 2015
Billings 32,486.2 31,679.3 2.5 65,677.2
Revenue 8,384.2 7,989.6 4.9 16,873.7
Direct costs (1,209.5) (1,094.2) (10.5) (2,360.9)
Net sales 7,174.7 6,895.4 4.1 14,512.8
Operating costs (6,468.3) (5,804.9) (11.4) (12,253.5)
Operating profit 706.4 1,090.5 (35.2) 2,259.3
Share of results of associates 20.3 21.8 (6.9) 64.3
Profit before interest and taxation 726.7 1,112.3 (34.7) 2,323.6
Finance income 56.1 51.6 8.7 99.5
Finance costs (157.5) (151.7) (3.8) (308.5)
Revaluation of financial instruments (82.7) (30.3) - (48.0)
Profit before taxation 542.6 981.9 (44.7) 2,066.6
Taxation (182.6) (149.2) (22.4) (341.8)
Profit for the period 360.0 832.7 (56.8) 1,724.8
Attributable to:
Equity holders of the parent 313.8 784.8 (60.0) 1,607.1
Non-controlling interests 46.2 47.9 3.5 117.7
360.0 832.7 (56.8) 1,724.8
Headline PBIT 980.5 922.3 6.3 2,452.8
Net sales margin 13.7% 13.4% 0.32 16.9%
Headline PBT 879.1 822.2 6.9 2,243.8
Reported earnings per share3
Basic earnings per ordinary share 24.4¢ 60.6¢ (59.7) 124.7¢
Diluted earnings per ordinary share 24.1¢ 59.6¢ (59.6) 122.4¢
Headline earnings per share3
Basic earnings per ordinary share 50.5¢ 47.2¢ 7.0 132.0¢
Diluted earnings per ordinary share 49.8¢ 46.4¢ 7.3 129.5¢
1 The unaudited condensed consolidated income statement above is presented in reportable Euros for information purposes
only and has been prepared assuming the Euro is the presentation 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 E1.2838 to the pound for the period ended 30 June 2016 (period ended 30 June 2015:
E1.3659; year ended 31 December 2015: E1.3782).
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 2016 in
reportable Japanese Yen1
Unaudited illustrative condensed consolidated interim income statement for the six months ended 30 June 2016
¥ billion Six months ended 30 June 2016 Six months ended 30 June 2015 +/(-)% Year ended 31 December 2015
Billings 4,040.8 4,251.0 (4.9) 8,810.5
Revenue 1,042.4 1,071.6 (2.7) 2,264.1
Direct costs (150.6) (146.7) (2.7) (316.8)
Net sales 891.8 924.9 (3.6) 1,947.3
Operating costs (804.6) (778.2) (3.4) (1,644.2)
Operating profit 87.2 146.7 (40.6) 303.1
Share of results of associates 2.6 2.9 (10.3) 8.6
Profit before interest and taxation 89.8 149.6 (40.0) 311.7
Finance income 7.2 6.8 5.9 13.3
Finance costs (19.9) (20.2) 1.5 (41.4)
Revaluation of financial instruments (9.8) (4.2) - (6.5)
Profit before taxation 67.3 132.0 (49.0) 277.1
Taxation (22.3) (20.2) (10.4) (46.0)
Profit for the period 45.0 111.8 (59.7) 231.1
Attributable to:
Equity holders of the parent 39.3 105.3 (62.7) 215.3
Non-controlling interests 5.7 6.5 12.3 15.8
45.0 111.8 (59.7) 231.1
Headline PBIT 120.6 123.6 (2.4) 328.3
Net sales margin 13.5% 13.4% 0.12 16.9%
Headline PBT 107.9 110.2 (2.1) 300.2
Reported earnings per share3
Basic earnings per ordinary share 30.6¥ 81.3¥ (62.4) 167.1¥
Diluted earnings per ordinary share 30.2¥ 79.9¥ (62.2) 164.0¥
Headline earnings per share3
Basic earnings per ordinary share 62.1¥ 63.1¥ (1.6) 176.3¥
Diluted earnings per ordinary share 61.3¥ 62.0¥ (1.1) 173.0¥
1 The unaudited condensed consolidated income statement above is presented in reportable Japanese Yen for information
purposes only and has been prepared assuming the Japanese Yen is the presentation 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 ¥159.8621 to the pound for the period ended 30 June 2016
(period ended 30 June 2015: ¥183.3327; year ended 31 December 2015: ¥185.1067).
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.
Glossary and basis of preparation
Average net debt and 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
2016 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, IT asset write-downs, 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, IT asset write-downs, 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 relating to gains on disposal of investments and subsidiaries, deferred tax impact of the
amortisation of acquired intangible assets and other goodwill items and tax credit 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
or exclude the results of acquisitions and disposals 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 Short and long-term incentives and the cost of share-based incentives
12 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
13 Percentage change at constant currency rates
14 Like-for-like growth at constant currency exchange rates and excluding the effects of acquisitions and disposals
15 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
16 Brazil, Russia, India and China (accounting for over $1.2 billion revenue, including associates, in the first half)
17 Bangladesh, Egypt, Indonesia, South Korea, Mexico, Nigeria, Pakistan, Philippines, Vietnam and Turkey - the Group has
no operations in Iran (accounting for over $500 million revenue, including associates, in the first half)
18 Advertising, Media Investment Management
19 Data Investment Management
20 Public Relations & Public Affairs
21 Branding & Identity, Healthcare and Specialist Communications
This information is provided by RNS
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