Section image

Cherries
oil on canvas
22 x 20 in
1981

Penny Machines
oil on canvas
23¾ x 29¾ in
1961

Stack of Books
oil on canvas
30 x 24 in
n.d.

Seven Suckers
oil on canvas
19 x 23 in
1970

Twin Jackpots
oil on canvas
30 x 46 in
1962

Ties
oil on canvas
20 x 26 in
1980

Cake Slices
oil on canvas
20 x 16 in
n.d.

Notes 1 - 5

2. Segment information

The Group is a leading worldwide communications services organisation offering national and multinational clients a comprehensive range of communications services.

The Group is currently organised into four reportable segments – Advertising and Media Investment Management; Consumer Insight; Public Relations & Public Affairs; and Branding & Identity, Healthcare and Specialist Communications. This last reportable segment includes WPP Digital and direct, digital, promotional and relationship marketing.

Operating sectors
Reported contributions were as follows:
  Revenue1 Headline
PBIT2
Headline
PBIT
margin
Revenue1 Headline
PBIT2
Headline
PBIT
margin
Revenue1 Headline
PBIT2
Headline
PBIT
margin
  2009
£m
2009
£m
2009
%
2008
£m
2008
£m
2008
%
2007
£m
2007
£m
2007
%
Advertising and Media Investment Management 3,358.9 472.8 14.1 3,329.5 581.3 17.5 2,871.3 466.9 16.3
Consumer Insight3 2,297.1 196.9 8.6 1,301.8 147.6 11.3 905.4 104.3 11.5
Public Relations & Public Affairs 795.7 122.1 15.3 752.3 124.9 16.6 641.4 106.5 16.6
Branding & Identity, Healthcare and Specialist Communications 2,232.6 225.4 10.1 2,093.3 264.4 12.6 1,767.8 250.3 14.2
  8,684.3 1,017.2 11.7 7,476.9 1,118.2 15.0 6,185.9 928.0 15.0
Notes
1
Intersegment sales have not been separately disclosed as they are not material.
2
A reconciliation from reported profit before interest and taxation to headline PBIT is provided in note 31. Reported profit before interest and taxation is reconciled to reported profit before taxation in the consolidated income statement.
3
Consumer Insight was previously reported as Information, Insight & Consultancy.
Other information Share-based
payments
Capital
additions1
Depreciation
and
amortisation2
Goodwill
impairment &
write-downs
Share of
results of
associates
Interest in
associates
  £m £m £m £m    
2009            
Advertising and Media Investment Management 23.1 166.5 99.7 33.3 30.7 445.9
Consumer Insight3 11.5 51.6 53.5 16.9 114.5
Public Relations & Public Affairs 4.4 19.2 15.2 2.7 60.3
Branding & Identity, Healthcare and Specialist Communications 15.9 43.8 57.4 11.0 6.7 108.6
  54.9 281.1 225.8 44.3 57.0 729.3
             
2008            
Advertising and Media Investment Management 33.3 93.3 86.2 9.1 32.7 474.9
Consumer Insight3 7.5 50.9 23.0 3.0 5.4 96.7
Public Relations & Public Affairs 4.3 13.3 13.6 4.1 59.6
Branding & Identity, Healthcare and Specialist Communications 17.2 63.1 50.2 73.5 3.8 83.1
  62.3 220.6 173.0 85.6 46.0 714.3
             
2007            
Advertising and Media Investment Management 35.0 96.5 75.4 33.2 28.1 328.9
Consumer Insight3 7.4 19.9 16.9 3.9 90.8
Public Relations & Public Affairs 4.3 10.7 12.0 0.6 2.1 59.0
Branding & Identity, Healthcare and Specialist Communications 15.7 45.2 40.1 12.0 7.3 61.4
  62.4 172.3 144.4 45.8 41.4 540.1
Notes
1
Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software).
2
Depreciation of property, plant and equipment and amortisation of other intangible assets.
3
Consumer Insight was previously reported as Information, Insight & Consultancy.
  Assets   Liabilities
Balance sheet Segment
assets
Unallocated
corporate
assets1
Consolidated
total
assets
  Segment
liabilities
Unallocated
corporate
liabilities1
Consolidated
total
liabilities
  £m £m £m   £m £m £m
2009              
Advertising and Media Investment Management 10,539.1       (8,036.9)    
Consumer Insight2 3,714.6       (1,002.4)    
Public Relations & Public Affairs 1,579.7       (324.9)    
Branding & Identity, Healthcare and Specialist Communications 4,710.9       (1,237.8)    
  20,544.3 1,807.2 22,351.5   (10,602.0) (5,673.8) (16,275.8)
2008              
Advertising and Media Investment Management 12,034.5       (8,757.8)    
Consumer Insight2 3,830.0       (1,022.3)    
Public Relations & Public Affairs 1,583.3       (363.7)    
Branding & Identity, Healthcare and Specialist Communications 4,324.3       (1,225.7)    
  21,772.1 2,691.2 24,463.3   (11,369.5) (7,134.0) (18,503.5)
Notes
1
Included in unallocated corporate assets and liabilities are corporate income tax, deferred tax and net interest-bearing debt. The debt has not been allocated as it is held centrally and specifically allocating it to individual segments is not considered to be a fair representation of the net assets of those segments.
2
Consumer Insight was previously reported as Information, Insight & Consultancy.
Contributions by geographical area were as follows:
    2009
£m
  2008
£m
  2007
£m
Revenue1            
North America6   3,010.0   2,603.2   2,266.7
UK   1,029.0   954.2   890.3
Western Continental Europe4,5
 2,327.8
 1,879.1
 1,497.4
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe5   2,317.5   2,040.4   1,531.5
    8,684.3   7,476.9   6,185.9
             
  Margin   Margin   Margin  
Headline PBIT2            
North America6 13.2% 397.9 16.8% 438.3 17.3% 391.5
UK 12.8% 131.5 13.0% 124.1 12.0% 107.1
Western Continental Europe4,5 8.3% 193.4 13.1% 247.0 12.8% 191.3
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe5 12.7% 294.4 15.1% 308.8 15.5% 238.1
  11.7% 1,017.2 15.0% 1,118.2 15.0% 928.0
             
Non-current assets3            
North America6   4,421.9   5,072.6    
UK   1,688.9   1,647.9    
Western Continental Europe4,5   4,014.1   4,227.3    
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe5   2,381.0   2,236.7    
    12,505.9   13,184.5    
Notes
1
Intersegment sales have not been separately disclosed as they are not material.
2
Headline PBIT is defined in note 31.
3
Non-current assets excluding financial instruments and deferred tax.
4
Western Continental Europe includes Ireland with revenue of £43.4 million (2008: £41.3 million, 2007: £33.5 million), headline PBIT of £3.9 million (2008: £8.0 million, 2007: £6.5 million) and non-current assets of £61.6 million (2008: £65.6 million).
5
The Group previously reported Continental Europe separately. Western Continental Europe is now reported separately, with Central & Eastern Europe included with Asia Pacific, Latin America, Africa & Middle East. Comparative figures have been restated accordingly.
6
North America includes the US with revenues of £2,835.8 million (2008: £2,444.7 million, 2007: £2,138.9 million), headline PBIT of £370.9 million (2008: £411.0 million, 2007: £372.3 million) and non-current assets of £4,010.9 million (2008: £4,402.0 million).

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