EX-99.2 3 d447495dex992.htm EX-2

EX-2

Exhibit 2

Unaudited Condensed Consolidated Interim Financial Statements of WPP plc for the six months ended 30 June 2017 and 2016 and the year ended 31 December 2016

WPP plc

Unaudited condensed consolidated interim income statement

for the six months ended 30 June 2017 and 2016 and the year ended 31 December 2016

		Notes		Six months ended 30 June 2017 £m				Six months ended 30 June 2016 £m				Year ended 31 December 2016 £m
Revenue		6			7,403.6				6,536.5				14,388.9
Direct costs					(1,041.7	)			(942.7	)			(1,991.1	)
Net sales		6			6,361.9				5,593.8				12,397.8
Operating costs		4			(5,637.5	)			(5,040.2	)			(10,334.7	)
Operating profit					724.4				553.6				2,063.1
Share of results of associates		4			59.5				15.9				49.8
Profit before interest and taxation					783.9				569.5				2,112.9
Finance income		5			44.9				43.1				80.4
Finance costs		5			(133.5	)			(122.1	)			(254.5	)
Revaluation of financial instruments		5			83.9				(65.4	)			(48.3	)
Profit before taxation					779.2				425.1				1,890.5
Taxation		7			(145.5	)			(143.1	)			(388.9	)
Profit for the period					633.7				282.0				1,501.6
Attributable to:
Equity holders of the parent					596.1				245.8				1,400.1
Non-controlling interests					37.6				36.2				101.5
					633.7				282.0				1,501.6
Earnings per share
Basic earnings per ordinary share		9			47.1p				19.1p				109.6p
Diluted earnings per ordinary share		9			46.6p				18.9p				108.0p

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim income statement.

1

WPP plc

Unaudited condensed consolidated interim statement of comprehensive income

for the six months ended 30 June 2017 and 2016 and the year ended 31 December 2016

		Six months ended 30 June 2017 £m				Six months ended 30 June 2016 £m				Year ended 31 December 2016 £m
Profit for the period			633.7				282.0				1,501.6
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments			(257.8	)			990.9				1,378.0
Loss on revaluation of available for sale investments			(0.4	)			(1.4	)			(93.1	)
			(258.2	)			989.5				1,284.9
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension plans			—				—				(15.9	)
Deferred tax on defined benefit pension plans			—				—				(0.4	)
			—				—				(16.3	)
Other comprehensive (loss)/income relating to the period			(258.2	)			989.5				1,268.6
Total comprehensive income relating to the period			375.5				1,271.5				2,770.2
Attributable to:
Equity holders of the parent			348.0				1,199.7				2,600.6
Non-controlling interests			27.5				71.8				169.6
			375.5				1,271.5				2,770.2

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim statement of comprehensive income.

2

WPP plc

Unaudited condensed consolidated interim cash flow statement

for the six months ended 30 June 2017 and 2016 and the year ended 31 December 2016

		Notes				Six months ended 30 June 2017 £m				Six months ended 30 June 2016 £m				Year ended 31 December 2016 £m
Net cash inflow from operating activities			10				85.6				66.2				1,773.8
Investing activities
Acquisitions and disposals			10				(201.4	)			(182.8	)			(638.8	)
Purchase of property, plant and equipment							(100.0	)			(126.7	)			(252.1	)
Purchase of other intangible assets (including capitalised computer software)							(19.6	)			(15.9	)			(33.0	)
Proceeds on disposal of property, plant and equipment							4.0				9.7				7.7
Net cash outflow from investing activities							(317.0	)			(315.7	)			(916.2	)
Financing activities
Share option proceeds							4.1				5.3				27.2
Cash consideration for non-controlling interests			10				(39.3	)			(43.4	)			(58.3	)
Share repurchases and buy-backs			10				(290.2	)			(196.8	)			(427.4	)
Net increase/(decrease) in borrowings			10				894.8				(62.9	)			(22.5	)
Financing and share issue costs							(0.6	)			(0.5	)			(6.4	)
Equity dividends paid							—				—				(616.5	)
Dividends paid to non-controlling interests in subsidiary undertakings							(46.3	)			(35.0	)			(89.6	)
Net cash inflow/(outflow) from financing activities							522.5				(333.3	)			(1,193.5	)
Net increase/(decrease) in cash and cash equivalents							291.1				(582.8	)			(335.9	)
Translation differences							17.8				237.3				291.9
Cash and cash equivalents at beginning of period							1,902.6				1,946.6				1,946.6
Cash and cash equivalents at end of period			10				2,211.5				1,601.1				1,902.6

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim cash flow statement.

3

WPP plc

Unaudited condensed consolidated interim balance sheet

as at 30 June 2017 and 2016 and 31 December 2016

		Notes				30 June 2017 £m				30 June 2016 £m				31 December 2016 £m
Non-current assets
Intangible assets:
Goodwill			12				13,082.1				12,293.5				13,214.3
Other			13				2,111.3				2,036.7				2,217.3
Property, plant and equipment							930.5				925.9				968.7
Interests in associates and joint ventures							1,234.6				690.8				1,069.4
Other investments							1,171.5				1,303.7				1,310.3
Deferred tax assets							143.7				94.0				140.4
Trade and other receivables			14				214.3				254.9				204.9
							18,888.0				17,599.5				19,125.3
Current assets
Inventory and work in progress							443.2				408.8				400.4
Corporate income tax recoverable							260.2				224.2				231.2
Trade and other receivables			14				11,317.1				11,751.1				12,374.5
Cash and short-term deposits							2,856.0				2,147.4				2,436.9
							14,876.5				14,531.5				15,443.0
Current liabilities
Trade and other payables			15				(13,428.2	)			(13,868.2	)			(15,010.4	)
Corporate income tax payable							(637.5	)			(584.0	)			(752.3	)
Bank overdrafts and loans							(933.0	)			(1,057.2	)			(1,002.5	)
							(14,998.7	)			(15,509.4	)			(16,765.2	)
Net current liabilities							(122.2	)			(977.9	)			(1,322.2	)
Total assets less current liabilities							18,765.8				16,621.6				17,803.1
Non-current liabilities
Bonds and bank loans							(6,592.5	)			(5,339.1	)			(5,564.9	)
Trade and other payables			16				(1,119.4	)			(1,122.0	)			(1,273.8	)
Deferred tax liabilities							(688.8	)			(713.0	)			(692.4	)
Provisions for post-employment benefits							(271.5	)			(260.4	)			(276.5	)
Provisions for liabilities and charges							(237.0	)			(208.9	)			(227.9	)
							(8,909.2	)			(7,643.4	)			(8,035.5	)
Net assets							9,856.6				8,978.2				9,767.6
Equity
Called-up share capital			17				133.2				133.0				133.2
Share premium account							566.3				540.5				562.2
Other reserves							952.1				824.4				1,185.2
Own shares							(1,121.6	)			(760.7	)			(962.0	)
Retained earnings							8,889.3				7,782.5				8,405.9
Equity share owners’ funds							9,419.3				8,519.7				9,324.5
Non-controlling interests							437.3				458.5				443.1
Total equity							9,856.6				8,978.2				9,767.6

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim balance sheet.

4

WPP plc

Unaudited condensed consolidated interim statement of changes in equity

for the six months ended 30 June 2017, 31 December 2016, and 30 June 2016

		Called-up share capital £m				Share premium account £m				Other reserves £m				Own shares £m				Retained earnings £m				Total equity share owners’ funds £m				Non- controlling interests £m				Total £m
Balance at 1 January 2016			132.9				535.3				(9.7	)			(719.6	)			7,698.5				7,637.4				378.4				8,015.8
Ordinary shares issued			0.1				5.2				—				—				—				5.3				—				5.3
Treasury share additions			—				—				—				(148.5	)			—				(148.5	)			—				(148.5	)
Treasury share allocations			—				—				—				3.5				(3.5	)			—				—				—
Net profit for the period			—				—				—				—				245.8				245.8				36.2				282.0
Exchange adjustments on foreign currency net investments			—				—				955.3				—				—				955.3				35.6				990.9
Loss on revaluation of available for sale investments			—				—				(1.4	)			—				—				(1.4	)			—				(1.4	)
Comprehensive income			—				—				953.9				—				245.8				1,199.7				71.8				1,271.5
Dividends paid			—				—				—				—				—				—				(35.0	)			(35.0	)
Non-cash share-based incentive plans (including stock options)			—				—				—				—				52.0				52.0				—				52.0
Tax adjustment on share-based payments			—				—				—				—				(37.8	)			(37.8	)			—				(37.8	)
Net movement in own shares held by ESOP Trusts			—				—				—				103.9				(152.2	)			(48.3	)			—				(48.3	)
Recognition/remeasurement of financial instruments			—				—				(2.3	)			—				24.4				22.1				—				22.1
Share purchases—close period commitments			—				—				(117.5	)			—				—				(117.5	)			—				(117.5	)
Acquisition of subsidiaries1			—				—				—				—				(44.7	)			(44.7	)			43.3				(1.4	)
Balance at 30 June 2016			133.0				540.5				824.4				(760.7	)			7,782.5				8,519.7				458.5				8,978.2
Ordinary shares issued			0.2				21.7				—				—				—				21.9				—				21.9
Treasury share additions			—				—				—				(126.0	)			—				(126.0	)			—				(126.0	)
Treasury share allocations			—				—				—				0.4				(0.4	)			—				—				—
Net profit for the period			—				—				—				—				1,154.3				1,154.3				65.3				1,219.6
Exchange adjustments on foreign currency net investments			—				—				354.6				—				—				354.6				32.5				387.1
Loss on revaluation of available for sale investments			—				—				(91.7	)			—				—				(91.7	)			—				(91.7	)
Actuarial loss on defined benefit pension plans			—				—				—				—				(15.9	)			(15.9	)			—				(15.9	)
Deferred tax on defined benefit pension plans			—				—				—				—				(0.4	)			(0.4	)			—				(0.4	)
Comprehensive income			—				—				262.9				—				1,138.0				1,400.9				97.8				1,498.7
Dividends paid			—				—				—				—				(616.5	)			(616.5	)			(54.6	)			(671.1	)
Non-cash share-based incentive plans (including stock options)			—				—				—				—				54.5				54.5				—				54.5
Tax adjustment on share-based payments			—				—				—				—				41.7				41.7				—				41.7
Net movement in own shares held by ESOP Trusts			—				—				—				(75.7	)			(28.9	)			(104.6	)			—				(104.6	)
Recognition/remeasurement of financial instruments			—				—				(19.6	)			—				2.4				(17.2	)			—				(17.2	)
Share purchases—close period commitments											117.5				—				8.6				126.1				—				126.1
Acquisition of subsidiaries1			—				—				—				—				24.0				24.0				(58.6	)			(34.6	)
Balance at 31 December 2016			133.2				562.2				1,185.2				(962.0	)			8,405.9				9,324.5				443.1				9,767.6
Ordinary shares issued			—				4.1				—				—				—				4.1				—				4.1
Treasury share additions			—				—				—				(144.9	)			—				(144.9	)			—				(144.9	)
Treasury share allocations			—				—				—				0.7				(0.7	)			—				—				—
Net profit for the period			—				—				—				—				596.1				596.1				37.6				633.7
Exchange adjustments on foreign currency net investments			—				—				(247.7	)			—				—				(247.7	)			(10.1	)			(257.8	)
Loss on revaluation of available for sale investments			—				—				(0.4	)			—				—				(0.4	)			—				(0.4	)
Comprehensive (loss)/income			—				—				(248.1	)			—				596.1				348.0				27.5				375.5
Dividends paid			—				—				—				—				—				—				(46.3	)			(46.3	)
Non-cash share-based incentive plans (including share options)			—				—				—				—				50.6				50.6				—				50.6
Tax adjustments on share-based payments			—				—				—				—				8.4				8.4				—				8.4
Net movement in own shares held by ESOP Trusts			—				—				—				(15.4	)			(129.9	)			(145.3	)			—				(145.3	)
Recognition/remeasurement of financial instruments			—				—				15.0				—				(2.5	)			12.5				—				12.5
Acquisition of subsidiaries1			—				—				—				—				(38.6	)			(38.6	)			13.0				(25.6	)
Balance at 30 June 2017			133.2				566.3				952.1				(1,121.6	)			8,889.3				9,419.3				437.3				9,856.6

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim statement of changes in equity.

¹ Acquisition of subsidiaries represents movements in retained earnings and non-controlling interests arising from changes in ownership of existing subsidiaries and recognition of non-controlling interests on new acquisitions.

5

Notes to the unaudited condensed consolidated interim financial statements

1. Basis of accounting

The unaudited condensed consolidated interim financial statements are prepared under the historical cost convention, except for the revaluation of certain financial instruments as disclosed in our accounting policies.

2. Accounting policies

The unaudited condensed consolidated interim financial statements comply with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), IAS 34 Interim Financial Reporting and with the accounting policies of the Group which were set out on pages F-2 to F-7 of the 2016 Annual Report on Form 20-F. No changes have been made to the Group’s accounting policies in the period ended 30 June 2017.

The announcement of the interim results was approved by the board of directors on 23 August 2017.

3. Currency conversion

The presentation currency of the Group is pound sterling and the unaudited condensed consolidated interim financial statements have been prepared on this basis. The 2017 unaudited condensed consolidated interim income statement is prepared using, among other currencies, average exchange rates of US$1.2591 to the pound (period ended 30 June 2016: US$1.4330; year ended 31 December 2016: US$1.3547) and €1.1624 to the pound (period ended 30 June 2016: €1.2838; year ended 31 December 2016: €1.2234). The unaudited condensed consolidated interim balance sheet as at 30 June 2017 has been prepared using the exchange rates on that day of US$1.3008 to the pound (30 June 2016: US$1.3268; 31 December 2016: US$1.2345) and €1.1397 to the pound (30 June 2016: €1.1982; 31 December 2016: €1.1705).

4. Operating costs and share of results of associates

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Staff costs			4,177.0				3,656.8				7,784.9
Establishment costs			443.9				395.2				836.5
Other operating costs			1,016.6				988.2				1,713.3
Total operating costs			5,637.5				5,040.2				10,334.7

Staff costs include:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Wages and salaries			2,919.1				2,520.4				5,395.6
Cash-based incentive plans			53.8				69.6				260.2
Share-based incentive plans			50.6				52.0				106.5
Social security costs			370.2				324.6				658.1
Pension costs			97.2				85.2				178.1
Severance			34.5				29.7				34.5
Other staff costs			651.6				575.3				1,151.9
			4,177.0				3,656.8				7,784.9
Staff cost to net sales ratio			65.7%				65.4%				62.8%

6

Notes to the unaudited condensed consolidated interim financial statements (continued)

4. Operating costs and share of results of associates (continued)

Other operating costs include:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Amortisation and impairment of acquired intangible assets			97.8				77.6				168.4
Gains on disposal of investments and subsidiaries			(5.9	)			(19.5	)			(44.3	)
Losses/(gains) on remeasurement of equity interests arising from change in scope of ownership			0.2				38.9				(232.4	)
Restructuring costs			19.2				10.5				27.4
Investment write-downs			—				83.3				86.1
Goodwill impairment			—				—				27.0

In 2017, restructuring costs of £19.2 million predominantly comprise severance costs arising from a structural reassessment of certain of the Group’s operations. In the period ended 30 June 2016, restructuring costs of £10.5 million predominantly comprise costs resulting from the project to transform and rationalise the Group’s IT services and infrastructure.

In the period ended 30 June 2016, losses on remeasurement of equity interests arising from a change in scope of ownership primarily comprise losses of £24.0 million in relation to the merger of most of the Group’s Australian and New Zealand assets with STW Communications Group Limited in Australia. The re-named WPP AUNZ became a listed subsidiary of the Group on 8 April 2016. In the second half of 2016, a gain of £260.0 million was recognised in relation to the reclassification of the Group’s interest in the Imagina Group in Spain from other investments to interests in associates, resulting from WPP attaining significant influence in the period.

Investment write-downs in 2016 includes £79.6 million in relation to comScore Inc, which has not released any financial statements in relation to its 2015 or 2016 results due to an internal investigation by their Audit Committee. Following the announcement of this internal investigation, the market value of comScore Inc fell below the Group’s carrying value.

Share of results of associates include:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Share of profit before interest and taxation			59.2				39.0				97.1
Share of exceptional gains/(losses)			13.2				(8.4	)			(15.2	)
Share of interest and non-controlling interests			(3.2	)			(3.2	)			(4.7	)
Share of taxation			(9.7	)			(11.5	)			(27.4	)
			59.5				15.9				49.8

7

Notes to the unaudited condensed consolidated interim financial statements (continued)

5. Finance income, finance costs and revaluation of financial instruments

Finance income includes:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Income from available for sale investments			5.4				9.6				12.5
Interest income			39.5				33.5				67.9
			44.9				43.1				80.4

Finance costs include:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Net interest expense on pension plans			3.3				3.2				6.7
Interest on other long-term employee benefits			1.7				1.3				2.7
Interest payable and similar charges			128.5				117.6				245.1
			133.5				122.1				254.5

Revaluation of financial instruments include:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Movements in fair value of treasury instruments			5.0				(3.9	)			(19.5	)
Revaluation of put options over non-controlling interests			9.5				(23.5	)			(17.2	)
Revaluation of payments due to vendors (earnout agreements)			69.4				(38.0	)			(11.6	)
			83.9				(65.4	)			(48.3	)

8

Notes to the unaudited condensed consolidated interim financial statements (continued)

6. Segmental analysis

Reported contributions by operating sector were as follows:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Revenue
Advertising and Media Investment Management			3,488.9				2,963.4				6,547.3
Data Investment Management			1,307.6				1,243.6				2,661.1
Public Relations & Public Affairs			583.6				499.2				1,101.3
Branding & Identity, Healthcare and Specialist Communications			2,023.5				1,830.3				4,079.2
			7,403.6				6,536.5				14,388.9
Net sales
Advertising and Media Investment Management			2,830.2				2,423.0				5,413.5
Data Investment Management			996.7				921.7				1,994.0
Public Relations & Public Affairs			568.0				490.4				1,078.8
Branding & Identity, Healthcare and Specialist Communications			1,967.0				1,758.7				3,911.5
			6,361.9				5,593.8				12,397.8
Headline PBIT1, 4
Advertising and Media Investment Management			431.8				369.7				1,027.2
Data Investment Management			129.2				124.7				351.5
Public Relations & Public Affairs			79.7				69.3				179.8
Branding & Identity, Healthcare and Specialist Communications			241.3				205.0				601.8
			882.0				768.7				2,160.3
Net sales margin2, 4			%				%				%
Advertising and Media Investment Management			15.3				15.3				19.0
Data Investment Management			13.0				13.5				17.6
Public Relations & Public Affairs			14.0				14.1				16.7
Branding & Identity, Healthcare and Specialist Communications			12.3				11.7				15.4
			13.9				13.7				17.4
Total assets
Advertising and Media Investment Management			15,189.9				15,150.7				15,984.9
Data Investment Management			4,075.2				4,046.0				3,167.2
Public Relations & Public Affairs			2,075.4				2,029.4				3,222.5
Branding & Identity, Healthcare and Specialist Communications			9,164.1				8,439.3				9,385.2
Segment assets			30,504.6				29,665.4				31,759.8
Unallocated corporate assets3			3,259.9				2,465.6				2,808.5
			33,764.5				32,131.0				34,568.3

Notes

¹  A reconciliation from profit before interest and taxation to headline PBIT is provided in note 19.

²  Net sales margin is calculated as headline PBIT as a percentage of net sales.

³  Included in unallocated corporate assets and liabilities are corporate income tax, deferred tax and net interest-bearing debt.

⁴  Headline PBIT and net sales margins for the six months ended 30 June 2016 have been restated to reflect a reclassification between sectors of one of the Group’s associates.

9

Notes to the unaudited condensed consolidated interim financial statements (continued)

6. Segmental analysis (continued)

Reported contributions by operating sector were as follows:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Total liabilities
Advertising and Media Investment Management			(11,367.6	)			(11,624.6	)			(12,409.6	)
Data Investment Management			(1,184.4	)			(1,204.2	)			(1,272.0	)
Public Relations & Public Affairs			(451.1	)			(473.5	)			(542.1	)
Branding & Identity, Healthcare and Specialist Communications			(2,053.0	)			(2,157.2	)			(2,564.9	)
Segment liabilities			(15,056.1	)			(15,459.5	)			(16,788.6	)
Unallocated corporate liabilities1			(8,851.8	)			(7,693.3	)			(8,012.1	)
			(23,907.9	)			(23,152.8	)			(24,800.7	)

Note

¹  Included in unallocated corporate assets and liabilities are corporate income tax, deferred tax and net interest-bearing debt.

10

Notes to the unaudited condensed consolidated interim financial statements (continued)

6. Segmental analysis (continued)

Reported contributions by geographical area were as follows:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Revenue
North America1			2,766.6				2,440.5				5,280.8
United Kingdom			978.7				927.0				1,866.3
Western Continental Europe			1,493.8				1,341.7				2,943.2
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe			2,164.5				1,827.3				4,298.6
			7,403.6				6,536.5				14,388.9
Net sales
North America1			2,409.4				2,103.2				4,603.7
United Kingdom			813.3				774.8				1,587.6
Western Continental Europe			1,230.0				1,112.0				2,425.5
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe			1,909.2				1,603.8				3,781.0
			6,361.9				5,593.8				12,397.8
Headline PBIT2
North America1			400.9				349.1				895.4
United Kingdom			112.4				97.8				261.4
Western Continental Europe			153.1				137.8				351.7
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe			215.6				184.0				651.8
			882.0				768.7				2,160.3
Net sales margin3			%				%				%
North America			16.6				16.6				19.4
United Kingdom			13.8				12.6				16.5
Western Continental Europe			12.4				12.4				14.5
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe			11.3				11.5				17.2
			13.9				13.7				17.4

Notes

¹  North America includes the US with revenue of £2,617.1 million (period ended 30 June 2016: £2,320.8 million; year ended 31 December 2016: £5,005.8 million), net sales of £2,282.0 million (period ended 30 June 2016: £1,998.0 million; year ended 31 December 2016: £4,365.1 million) and headline PBIT of £382.2 million (period ended 30 June 2016: £334.4 million; year ended 31 December 2016: £849.4 million).

²  A reconciliation from profit before interest and taxation to headline PBIT is provided in note 19.

³  Net sales margin is calculated as headline PBIT as a percentage of net sales.

11

Notes to the unaudited condensed consolidated interim financial statements (continued)

7. Taxation

The tax rate on profit before tax was 18.7% (30 June 2016: 33.7%; 31 December 2016: 20.6%). The decrease in the tax rate was largely due to the revaluation of financial instruments not being taxable, and the reduction in exceptional losses, compared to the prior period, that were not tax deductible.

The tax charge comprises:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Corporation tax
Current year			164.8				154.8				569.4
Prior years			(11.5	)			(22.2	)			(80.3	)
			153.3				132.6				489.1
Deferred tax
Current year			(5.4	)			2.4				(88.0	)
Prior years			(2.4	)			8.1				(12.2	)
			(7.8	)			10.5				(100.2	)
Tax charge			145.5				143.1				388.9

8. Ordinary dividends

The Board has recommended an interim dividend of 22.7p (2016: 19.55p) per ordinary share. This is expected to be paid on 6 November 2017 to share owners on the register at 6 October 2017. The Board recommended a final dividend of 37.05p per ordinary share in respect of 2016. This was paid on 3 July 2017.

9. Earnings per share

Basic EPS

The calculation of basic EPS is as follows:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
Earnings1 (£ million)			596.1				245.8				1,400.1
Average shares used in basic EPS calculation (million)			1,266.2				1,284.0				1,277.8
EPS			47.1p				19.1p				109.6p

Note

¹  Earnings is equivalent to profit for the period attributable to equity holders of the parent.

12

Notes to the unaudited condensed consolidated interim financial statements (continued)

9. Earnings per share (continued)

Diluted EPS

The calculation of diluted EPS is as follows:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
Diluted earnings (£ million)			596.1				245.8				1,400.1
Shares used in diluted EPS calculation (million)			1,279.7				1,300.0				1,296.0
Diluted EPS			46.6p				18.9p				108.0p

A reconciliation between the shares used in calculating basic and diluted EPS is as follows:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		m				m				m
Average shares used in basic EPS calculation			1,266.2				1,284.0				1,277.8
Dilutive share options outstanding			2.1				2.2				2.4
Other potentially issuable shares			11.4				13.8				15.8
Shares used in diluted EPS calculation			1,279.7				1,300.0				1,296.0

At 30 June 2017 there were 1,332,271,372 ordinary shares in issue.

13

Notes to the unaudited condensed consolidated interim financial statements (continued)

10. Analysis of cash flows

The following tables analyse the items included within the main cash flow headings on page 3:

Net cash inflow from operating activities:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Profit for the period			633.7				282.0				1,501.6
Taxation			145.5				143.1				388.9
Revaluation of financial instruments			(83.9	)			65.4				48.3
Finance costs			133.5				122.1				254.5
Finance income			(44.9	)			(43.1	)			(80.4	)
Share of results of associates			(59.5	)			(15.9	)			(49.8	)
Non-cash share-based incentive plans (including share options)			50.6				52.0				106.5
Depreciation of property, plant and equipment			115.6				102.6				220.8
Goodwill impairment			—				—				27.0
Amortisation and impairment of acquired intangible assets			97.8				77.6				168.4
Amortisation of other intangible assets			18.3				17.9				38.6
Investment write-downs			—				83.3				86.1
Gains on disposal of investments and subsidiaries			(5.9	)			(19.5	)			(44.3	)
Losses/(gains) on remeasurement of equity interests arising from a change in scope of ownership			0.2				38.9				(232.4	)
Losses on sale of property, plant and equipment			0.1				0.2				0.8
Movements in trade working capital1			(257.8	)			(151.4	)			118.3
Movements in other receivables, payables and provisions			(365.7	)			(404.4	)			(269.6	)
Corporation and overseas tax paid			(254.2	)			(249.5	)			(414.2	)
Interest and similar charges paid			(96.6	)			(116.7	)			(242.1	)
Interest received			35.2				35.3				73.9
Investment income			5.4				9.6				12.5
Dividends received from associates			18.2				36.7				60.4
			85.6				66.2				1,773.8

Note

¹  The Group typically experiences an outflow of working capital in the first half of the financial year and an inflow in the second half. This is primarily due to the seasonal nature of working capital flows associated with its media buying activities on behalf of clients.

14

Notes to the unaudited condensed consolidated interim financial statements (continued)

10. Analysis of cash flows (continued)

Acquisitions and disposals:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Initial cash consideration			(108.6	)			(108.3	)			(424.1	)
Cash and cash equivalents acquired (net)			15.7				37.9				57.3
Earnout payments			(61.7	)			(20.5	)			(92.3	)
Purchase of other investments (including associates)			(52.6	)			(121.9	)			(260.2	)
Proceeds on disposal of investments and subsidiaries			5.8				30.0				80.5
Acquisitions and disposals			(201.4	)			(182.8	)			(638.8	)
Cash consideration for non-controlling interests			(39.3	)			(43.4	)			(58.3	)
Net acquisition payments and investments			(240.7	)			(226.2	)			(697.1	)

Share repurchases and buy-backs:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Purchase of own shares by ESOP Trusts			(145.3	)			(48.3	)			(152.9	)
Shares purchased into treasury			(144.9	)			(148.5	)			(274.5	)
			(290.2	)			(196.8	)			(427.4	)

Net increase/(decrease) in borrowings:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Increase in drawings on bank loans			1,080.8				329.2				(30.4	)
Proceeds from issue of €250 million bonds			214.0				—				—
Repayment of £400 million bonds			(400.0	)			—				—
Repayment of €498 million bonds			—				(392.1	)			(392.1	)
Proceeds from issue of £400 million bonds			—				—				400.0
			894.8				(62.9	)			(22.5	)

15

Notes to the unaudited condensed consolidated interim financial statements (continued)

10. Analysis of cash flows (continued)

Cash and cash equivalents:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Cash at bank and in hand			2,524.9				1,985.7				2,256.2
Short-term bank deposits			331.1				161.7				180.7
Overdrafts1			(644.5	)			(546.3	)			(534.3	)
			2,211.5				1,601.1				1,902.6

Note

¹  Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.

11. Debt financing

The Group estimates that the fair value of corporate bonds is £5,868.2 million at 30 June 2017 (30 June 2016: £5,633.0 million; 31 December 2016: £6,101.4 million). The Group considers that the carrying amount of bank loans approximates their fair value.

The following table is an analysis of future anticipated cash flows in relation to the Group’s debt, on an undiscounted basis which, therefore, differs from the carrying value:

		30 June 2017				30 June 2016				31 December 2016
		£m				£m				£m
Within one year			(463.4	)			(678.4	)			(582.9	)
Between one and two years			(423.7	)			(365.2	)			(389.5	)
Between two and three years			(1,221.2	)			(361.9	)			(893.0	)
Between three and four years			(358.6	)			(652.8	)			(369.1	)
Between four and five years			(1,778.3	)			(343.0	)			(812.9	)
Over five years			(5,009.2	)			(5,258.1	)			(5,144.7	)
Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes			(9,254.4	)			(7,659.4	)			(8,192.1	)
Short-term overdrafts – within one  year			(644.5	)			(546.3	)			(534.3	)
Future anticipated cash flows			(9,898.9	)			(8,205.7	)			(8,726.4	)
Effect of discounting/financing rates			2,373.4				1,809.4				2,159.0
Debt financing			(7,525.5	)			(6,396.3	)			(6,567.4	)

12. Goodwill and acquisitions

Goodwill in relation to subsidiary undertakings decreased by £132.2 million (30 June 2016: increased by £1,622.9 million) in the period. This movement primarily relates to the effect of currency translation and also includes both goodwill arising on acquisitions completed in the period and adjustments to goodwill relating to acquisitions completed in prior years.

The contribution to revenue and operating profit of acquisitions completed in the period was not material. There were no material acquisitions completed during the period or between 30 June 2017 and the date the interim financial statements were approved.

16

Notes to the unaudited condensed consolidated interim financial statements (continued)

13. Other intangible assets

The following are included in other intangibles:

		30 June 2017				30 June 2016				31 December 2016
		£m				£m				£m
Brands with an indefinite useful life			1,108.7				1,083.4				1,141.3
Acquired intangibles			896.6				846.8				972.5
Other (including capitalised computer software)			106.0				106.5				103.5
			2,111.3				2,036.7				2,217.3

14. Trade and other receivables

Amounts falling due within one year:

		30 June 2017				30 June 2016				31 December 2016
		£m				£m				£m
Trade receivables			6,901.7				7,340.2				8,054.2
VAT and sales taxes recoverable			187.7				146.5				157.2
Prepayments			404.0				363.3				310.0
Accrued income			3,385.3				3,412.8				3,353.8
Fair value of derivatives			1.9				15.2				14.7
Other debtors			436.5				473.1				484.6
			11,317.1				11,751.1				12,374.5

Amounts falling due after more than one year:

		30 June 2017				30 June 2016				31 December 2016
		£m				£m				£m
Prepayments			4.3				3.5				3.7
Accrued income			21.9				14.5				9.5
Fair value of derivatives			12.2				64.8				8.3
Other debtors			175.9				172.1				183.4
			214.3				254.9				204.9

The Group considers that the carrying amount of trade and other receivables approximates their fair value.

15. Trade and other payables: amounts falling due within one year

		30 June 2017				30 June 2016				31 December 2016
		£m				£m				£m
Trade payables			9,087.5				9,379.8				10,308.3
Deferred income			1,188.3				1,216.4				1,312.7
Payments due to vendors (earnout agreements)			283.9				234.6				277.5
Liabilities in respect of put option agreements with vendors			36.7				49.5				51.0
Fair value of derivatives			2.8				6.4				4.1
Share purchases – close period commitments			—				119.6				—
Other creditors and accruals			2,829.0				2,861.9				3,056.8
			13,428.2				13,868.2				15,010.4

The Group considers that the carrying amount of trade and other payables approximates their fair value.

17

Notes to the unaudited condensed consolidated interim financial statements (continued)

16. Trade and other payables: amounts falling due after more than one year

		30 June 2017				30 June 2016				31 December 2016
		£m				£m				£m
Payments due to vendors (earnout agreements)			586.8				651.7				699.0
Liabilities in respect of put option agreements with vendors			232.6				223.3				246.0
Fair value of derivatives			—				1.3				1.8
Other creditors and accruals			300.0				245.7				327.0
			1,119.4				1,122.0				1,273.8

The Group considers that the carrying amount of trade and other payables approximates their fair value.

The following table sets out payments due to vendors, comprising deferred consideration and the directors’ best estimates of future earnout-related obligations:

		30 June 2017				30 June 2016				31 December 2016
		£m				£m				£m
Within one year			283.9				234.6				277.5
Between 1 and 2 years			163.0				153.1				220.1
Between 2 and 3 years			167.0				168.7				170.2
Between 3 and 4 years			148.5				174.3				176.6
Between 4 and 5 years			83.5				121.1				122.4
Over 5 years			24.8				34.5				9.7
			870.7				886.3				976.5

The Group’s approach to payments due to vendors is outlined in note 21.

The following table sets out the movements of deferred and earnout related obligations during the period:

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
At the beginning of the period			976.5				581.3				581.3
Earnouts paid			(61.7	)			(20.5	)			(92.3	)
New acquisitions			71.4				185.3				359.5
Revision of estimates taken to goodwill			(23.2	)			38.9				28.4
Revaluation of payments due to vendors (note 5)			(69.4	)			38.0				11.6
Exchange adjustments			(22.9	)			63.3				88.0
At the end of the period			870.7				886.3				976.5

The Group does not consider there to be any material contingent liabilities as at 30 June 2017.

18

Notes to the unaudited condensed consolidated interim financial statements (continued)

17. Issued share capital – movement in the period

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
Number of equity ordinary shares		m				m				m
At the beginning of the period			1,331.9				1,329.4				1,329.4
Exercise of share options			0.4				0.6				2.5
At the end of the period			1,332.3				1,330.0				1,331.9

18. Related party transactions

From time to time the Group enters into transactions with its associate undertakings. These transactions were not material for any of the periods presented.

19. Reconciliation of profit before interest and taxation to headline PBIT

		Six months ended 30 June 2017				Six months ended 30 June 2016				Year ended 31 December 2016
		£m				£m				£m
Profit before interest and taxation			783.9				569.5				2,112.9
Amortisation and impairment of acquired intangible assets			97.8				77.6				168.4
Goodwill impairment			—				—				27.0
Gains on disposal of investments and subsidiaries			(5.9	)			(19.5	)			(44.3	)
Losses/(gains) on remeasurement of equity interests arising from a change in scope of ownership			0.2				38.9				(232.4	)
Investment write-downs			—				83.3				86.1
Restructuring costs			19.2				10.5				27.4
Share of exceptional (gains)/losses of associates			(13.2	)			8.4				15.2
Headline PBIT			882.0				768.7				2,160.3
Net Sales margin (Headline PBIT as a percentage of net sales)			13.9	%			13.7	%			17.4	%

20. Going concern and risk management policies

In considering going concern and liquidity risk, the directors have reviewed the Group’s future cash requirements and earnings projections. The directors believe these forecasts have been prepared on a prudent basis and have also considered the impact of a range of potential changes to trading performance. The directors have concluded that the Group should be able to operate within its current facilities and comply with its banking covenants for the foreseeable future and therefore believe it is appropriate to prepare the financial statements of the Group on a going concern basis.

19

Notes to the unaudited condensed consolidated interim financial statements (continued)

20. Going concern and risk management policies (continued)

At 30 June 2017, the Group has access to £7.8 billion of committed facilities with maturity dates spread over the years 2018 to 2046 as illustrated below:

		Maturity by year
						2018				2019				2020				2021				2022+
		£m				£m				£m				£m				£m				£m
£ bonds £400m (2.875% ’46)			400.0																				400.0
US bond $500m (5.625% ’43)			384.4																				384.4
US bond $300m (5.125% ’42)			230.6																				230.6
Eurobonds €600m (1.625% ’30)			526.5																				526.5
Eurobonds €750m (2.25% ’26)			658.1																				658.1
US bond $750m (3.75% ’24)			576.6																				576.6
Eurobonds €750m (3.0% ’23)			658.1																				658.1
US bond $500m (3.625% ’22)			384.4																				384.4
US bond $812m (4.75% ’21)			624.5																624.5
Bank revolver ($2,500m)			1,921.9																1,921.9
£ bonds £200m (6.375% ’20)			200.0												200.0
Eurobonds €250m (3m EURIBOR + 0.32% ’20)			219.4												219.4
Eurobonds €600m (0.75% ’19)			526.5								526.5
Bank revolver (A$520m)			306.9								306.9
Eurobonds €252m (0.43% ’18)			221.0				221.0
Total committed facilities available			7,838.9				221.0				833.4				419.4				2,546.4				3,818.7
Drawn down facilities at 30 June 2017			6,880.9				221.0				779.5				419.4				1,642.3				3,818.7
Undrawn committed credit facilities			958.0

Given the strong cash generation of the business, its debt maturity profile and available facilities, the directors believe the Group has sufficient liquidity to match its requirements for the foreseeable future.

Treasury management

The Group’s treasury activities are principally concerned with monitoring of working capital, managing external and internal funding requirements and monitoring and managing financial market risks, in particular risks from movements in interest and foreign exchange rates.

The Group’s risk management policies relating to foreign currency risk, interest rate risk, liquidity risk, capital risk and credit risk are presented in the notes to the consolidated financial statements of the 2016 Annual Report on Form 20-F and in the opinion of the Board remain relevant for the remaining six months of the year.

21. Financial instruments

The fair values of financial assets and liabilities are based on quoted market prices where available. Where the market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources or on the basis of discounted cash flow models where appropriate.

20

Notes to the unaudited condensed consolidated interim financial statements (continued)

21. Financial instruments (continued)

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

		Level 1				Level 2				Level 3
		£m				£m				£m
30 June 2017
Derivatives in designated hedge relationships
Derivative assets			—				13.3				—
Derivative liabilities			—				(0.8	)			—
Held for trading
Derivative assets			—				0.8				—
Derivative liabilities			—				(2.0	)			—
Payments due to vendors (earnout agreements) (note 16)			—				—				(870.7	)
Liabilities in respect of put options			—				—				(269.3	)
Available for sale
Other investments			379.0				—				855.6

Reconciliation of level 3 fair value measurements¹:

		Liabilities in respect of put options				Other investments
		£m				£m
1 January 2017			(297.0	)			881.0
Gains recognised in the income statement			9.5				—
Gains recognised in other comprehensive income			—				30.1
Exchange adjustments			4.2				(41.8	)
Additions			(1.2	)			43.4
Cancellations			1.6				—
Reclassifications from other investments to interests in associates			—				(57.1	)
Settlements			13.6				—
30 June 2017			(269.3	)			855.6

Note

¹  Payments due to vendors (earnout agreements) are reconciled in note 16.

Payments due to vendors and liabilities in respect of put options

Future anticipated payments due to vendors in respect of contingent consideration (earnout agreements) are recorded at fair value, which is the present value of the expected cash outflows of the obligations. Liabilities in respect of put option agreements are initially recorded at the present value of the redemption amount in

21

Notes to the unaudited condensed consolidated interim financial statements (continued)

21. Financial instruments (continued)

accordance with IAS 32 and subsequently measured at fair value in accordance with IAS 39. Both types of obligations are dependent on the future financial performance of the entity and it is assumed that future profits are in line with directors’ estimates. The directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. At 30 June 2017, the weighted average growth rate in estimating future financial performance was 25.4%, which reflects the prevalence of recent acquisitions in the faster growing markets and new media sectors. The risk adjusted discount rate applied to these obligations at 30 June 2017 was 1.6%.

A one percentage point increase or decrease in the growth rate in estimated future financial performance would increase or decrease the combined liabilities due to earnout agreements and put options by approximately £11.7 million and £14.1 million, respectively. A 0.5 percentage point increase or decrease in the risk adjusted discount rate would decrease or increase the combined liabilities by approximately £13.4 million and £13.8 million, respectively. An increase in the liability would result in a loss in the revaluation of financial instruments (note 5), while a decrease would result in a gain.

Other investments

Other investments included in level 1 are based on quoted market prices. Other investments included in level 3 are unlisted securities, where market value is not readily available. The Group has estimated relevant fair values on the basis of publicly available information from outside sources or on the basis of discounted cash flow models where appropriate. The sensitivity to changes in unobservable inputs is specific to each individual investment.

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors

WPP Finance 2010 has in issue $500 million of 3.625% bonds due September 2022, $300 million of 5.125% bonds due September 2042 and $812 million of 4.75% bonds due November 2021 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited and WPP Jubilee Limited as subsidiary guarantors.

The issuer and guarantors of the bonds (issuer and subsidiary guarantors are 100% owned by WPP plc) are each subject to the reporting requirements under section 15(d) of the Securities Exchange Act of 1934. In accordance with SEC Regulation S-X Rule 3-10, condensed consolidating financial information containing financial information for WPP Finance 2010 and the guarantors is presented. Condensed consolidating financial information is prepared in accordance with IFRS as issued by the IASB. In the parent company, subsidiary issuer and subsidiary guarantors columns investments in subsidiaries are accounted for under the equity method of accounting. Under the equity method, earnings of subsidiaries are reflected as “share of results of subsidiaries” in the income statement and as “investment in subsidiaries” in the balance sheet, as required by the SEC.

In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited in obtaining reimbursement for any such payments from WPP Finance 2010.

22

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating income statement information

For the six months ended 30 June 2017, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Revenue			—				—				—				7,403.6				—				7,403.6
Direct costs			—				—				—				(1,041.7	)			—				(1,041.7	)
Net sales			—				—				—				6,361.9				—				6,361.9
Operating costs			(1.7	)			63.5				—				(5,699.3	)			—				(5,637.5	)
Operating profit/(loss)			(1.7	)			63.5				—				662.6				—				724.4
Share of results of subsidiaries			644.3				671.4				—				—				(1,315.7	)			—
Share of results of associates			—				—				—				59.5				—				59.5
Profit before interest and taxation			642.6				734.9				—				722.1				(1,315.7	)			783.9
Finance income			—				12.1				56.8				127.6				(151.6	)			44.9
Finance costs			(47.1	)			(110.4	)			(52.9	)			(74.7	)			151.6				(133.5	)
Revaluation of financial instruments			0.6				—				2.6				80.7				—				83.9
Profit before taxation			596.1				636.6				6.5				855.7				(1,315.7	)			779.2
Taxation			—				7.7				—				(153.2	)			—				(145.5	)
Profit for the period			596.1				644.3				6.5				702.5				(1,315.7	)			633.7
Attributable to:
Equity holders of the parent			596.1				644.3				6.5				664.9				(1,315.7	)			596.1
Non-controlling interests			—				—				—				37.6				—				37.6
			596.1				644.3				6.5				702.5				(1,315.7	)			633.7

For the six months ended 30 June 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Revenue			—				—				—				6,536.5				—				6,536.5
Direct costs			—				—				—				(942.7	)			—				(942.7	)
Net sales			—				—				—				5,593.8				—				5,593.8
Operating costs			7.6				(566.7	)			(0.1	)			(4,481.0	)			—				(5,040.2	)
Operating profit/(loss)			7.6				(566.7	)			(0.1	)			1,112.8				—				553.6
Share of results of subsidiaries			293.3				953.8				—				—				(1,247.1	)			—
Share of results of associates			—				—				—				15.9				—				15.9
Profit/(loss) before interest and taxation			300.9				387.1				(0.1	)			1,128.7				(1,247.1	)			569.5
Finance income			—				15.6				47.1				111.9				(131.5	)			43.1
Finance costs			(53.0	)			(109.4	)			(46.8	)			(44.4	)			131.5				(122.1	)
Revaluation of financial instruments			(2.1	)			—				—				(63.3	)			—				(65.4	)
Profit before taxation			245.8				293.3				0.2				1,132.9				(1,247.1	)			425.1
Taxation			—				—				—				(143.1	)			—				(143.1	)
Profit for the period			245.8				293.3				0.2				989.8				(1,247.1	)			282.0
Attributable to:
Equity holders of the parent			245.8				293.3				0.2				953.6				(1,247.1	)			245.8
Non-controlling interests			—				—				—				36.2				—				36.2
			245.8				293.3				0.2				989.8				(1,247.1	)			282.0

23

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating income statement information (continued)

For the year ended 31 December 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Revenue			—				—				—				14,388.9				—				14,388.9
Direct costs			—				—				—				(1,991.1	)			—				(1,991.1	)
Net sales			—				—				—				12,397.8				—				12,397.8
Operating costs			13.8				(828.2	)			(0.1	)			(9,520.2	)			—				(10,334.7	)
Operating profit/(loss)			13.8				(828.2	)			(0.1	)			2,877.6				—				2,063.1
Share of results of subsidiaries			1,497.4				2,518.2				—				—				(4,015.6	)			—
Share of results of associates			—				—				—				49.8				—				49.8
Profit/(loss) before interest and taxation			1,511.2				1,690.0				(0.1	)			2,927.4				(4,015.6	)			2,112.9
Finance income			—				28.8				121.1				231.9				(301.4	)			80.4
Finance costs			(102.5	)			(222.1	)			(98.8	)			(132.5	)			301.4				(254.5	)
Revaluation of financial instruments			(8.6	)			—				7.0				(46.7	)			—				(48.3	)
Profit before taxation			1,400.1				1,496.7				29.2				2,980.1				(4,015.6	)			1,890.5
Taxation			—				0.7				—				(389.6	)			—				(388.9	)
Profit for the year			1,400.1				1,497.4				29.2				2,590.5				(4,015.6	)			1,501.6
Attributable to:
Equity holders of the parent			1,400.1				1,497.4				29.2				2,489.0				(4,015.6	)			1,400.1
Non-controlling interests			—				—				—				101.5				—				101.5
			1,400.1				1,497.4				29.2				2,590.5				(4,015.6	)			1,501.6

24

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating statement of comprehensive income

For the six months ended 30 June 2017, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Profit for the period			596.1				644.3				6.5				702.5				(1,315.7	)			633.7
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments			(247.7	)			(247.7	)			(0.4	)			(257.4	)			495.4				(257.8	)
Loss on revaluation of available for sale investments			(0.4	)			(0.4	)			—				(0.4	)			0.8				(0.4	)
			(248.1	)			(248.1	)			(0.4	)			(257.8	)			496.2				(258.2	)
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit pension plans			—				—				—				—				—				—
Deferred tax on defined benefit pension plans			—				—				—				—				—				—
			—				—				—				—				—				—
Other comprehensive loss relating to the period			(248.1	)			(248.1	)			(0.4	)			(257.8	)			496.2				(258.2	)
Total comprehensive income relating to the period			348.0				396.2				6.1				444.7				(819.5	)			375.5
Attributable to:
Equity holders of the parent			348.0				396.2				6.1				417.2				(819.5	)			348.0
Non-controlling interests			—				—				—				27.5				—				27.5
			348.0				396.2				6.1				444.7				(819.5	)			375.5

For the six months ended 30 June 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Profit for the period			245.8				293.3				0.2				989.8				(1,247.1	)			282.0
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments			955.3				955.3				(2.0	)			992.9				(1,910.6	)			990.9
Loss on revaluation of available for sale investments			(1.4	)			(1.4	)			—				(1.4	)			2.8				(1.4	)
			953.9				953.9				(2.0	)			991.5				(1,907.8	)			989.5
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit pension plans			—				—				—				—				—				—
Deferred tax on defined benefit pension plans			—				—				—				—				—				—
			—				—				—				—				—				—
Other comprehensive income/(loss) relating to the period			953.9				953.9				(2.0	)			991.5				(1,907.8	)			989.5
Total comprehensive income/(loss) relating to the period			1,199.7				1,247.2				(1.8	)			1,981.3				(3,154.9	)			1,271.5
Attributable to:
Equity holders of the parent			1,199.7				1,247.2				(1.8	)			1,909.5				(3,154.9	)			1,199.7
Non-controlling interests			—				—				—				71.8				—				71.8
			1,199.7				1,247.2				(1.8	)			1,981.3				(3,154.9	)			1,271.5

25

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating statement of comprehensive income (continued)

For the year ended 31 December 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Profit for the year			1,400.1				1,497.4				29.2				2,590.5				(4,015.6	)			1,501.6
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments			1,309.9				1,309.9				(1.2	)			1,379.2				(2,619.8	)			1,378.0
Loss on revaluation of available for sale investments			(93.1	)			(93.1	)			—				(93.1	)			186.2				(93.1	)
			1,216.8				1,216.8				(1.2	)			1,286.1				(2,433.6	)			1,284.9
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension plans			(15.9	)			(15.9	)			—				(15.9	)			31.8				(15.9	)
Deferred tax on defined benefit pension plans			(0.4	)			(0.4	)			—				(0.4	)			0.8				(0.4	)
			(16.3	)			(16.3	)			—				(16.3	)			32.6				(16.3	)
Other comprehensive income/(loss) for the year			1,200.5				1,200.5				(1.2	)			1,269.8				(2,401.0	)			1,268.6
Total comprehensive income for the year			2,600.6				2,697.9				28.0				3,860.3				(6,416.6	)			2,770.2
Attributable to:
Equity holders of the parent			2,600.6				2,697.9				28.0				3,690.7				(6,416.6	)			2,600.6
Non-controlling interests			—				—				—				169.6				—				169.6
			2,600.6				2,697.9				28.0				3,860.3				(6,416.6	)			2,770.2

26

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating cash flow statement information

For the six months ended 30 June 2017, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Net cash inflow/(outflow) from operating activities			191.5				(184.2	)			0.4				77.9				—				85.6
Investing activities
Acquisitions and disposals			—				—				—				(201.4	)			—				(201.4	)
Purchase of property, plant and equipment			—				(5.4	)			—				(94.6	)			—				(100.0	)
Purchase of other intangible assets (including capitalised computer software)			—				—				—				(19.6	)			—				(19.6	)
Proceeds on disposal of property, plant and equipment			—				—				—				4.0				—				4.0
Net cash outflow from investing activities			—				(5.4	)			—				(311.6	)			—				(317.0	)
Financing activities
Share option proceeds			4.1				—				—				—				—				4.1
Cash consideration for non-controlling interests			—				(0.2	)			—				(39.1	)			—				(39.3	)
Share repurchases and buy-backs			(144.9	)			—				—				(145.3	)			—				(290.2	)
Net increase/(decrease) in borrowings			(400.0	)			—				—				1,294.8				—				894.8
Financing and share issue costs			—				—				—				(0.6	)			—				(0.6	)
Equity dividends paid			—				—				—				—				—				—
Dividends paid to non-controlling interests in subsidiary undertakings			—				—				—				(46.3	)			—				(46.3	)
Net cash inflow/(outflow) from financing activities			(540.8	)			(0.2	)			—				1,063.5				—				522.5
Net increase/(decrease) in cash and cash equivalents			(349.3	)			(189.8	)			0.4				829.8				—				291.1
Translation differences			(1.3	)			26.4				0.7				(8.0	)			—				17.8
Cash and cash equivalents at beginning of period			(1,225.0	)			(1,623.7	)			(15.1	)			4,766.4				—				1,902.6
Cash and cash equivalents at end of period			(1,575.6	)			(1,787.1	)			(14.0	)			5,588.2				—				2,211.5

For the six months ended 30 June 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Net cash inflow/(outflow) from operating activities			311.7				1,270.0				9.1				(1,524.6	)			—				66.2
Investing activities
Acquisitions and disposals			—				—				—				(182.8	)			—				(182.8	)
Purchase of property, plant and equipment			—				(0.4	)			—				(126.3	)			—				(126.7	)
Purchase of other intangible assets (including capitalised computer software)			—				—				—				(15.9	)			—				(15.9	)
Proceeds on disposal of property, plant and equipment			—				—				—				9.7				—				9.7
Net cash outflow from investing activities			—				(0.4	)			—				(315.3	)			—				(315.7	)
Financing activities
Share option proceeds			5.3				—				—				—				—				5.3
Cash consideration for non-controlling interests			—				—				—				(43.4	)			—				(43.4	)
Share repurchases and buy-backs			(148.5	)			—				—				(48.3	)			—				(196.8	)
Net (decrease)/increase in borrowings			(392.1	)			—				—				329.2				—				(62.9	)
Financing and share issue costs			—				—				—				(0.5	)			—				(0.5	)
Equity dividends paid			—				—				—				—				—				—
Dividends paid to non-controlling interests in subsidiary undertakings			—				—				—				(35.0	)			—				(35.0	)
Net cash (outflow)/inflow from financing activities			(535.3	)			—				—				202.0				—				(333.3	)
Net (decrease)/ increase in cash and cash equivalents			(223.6	)			1,269.6				9.1				(1,637.9	)			—				(582.8	)
Translation differences			(2.0	)			(102.3	)			(7.5	)			349.1				—				237.3
Cash and cash equivalents at beginning of period			(926.5	)			(2,468.9	)			(67.5	)			5,409.5				—				1,946.6
Cash and cash equivalents at end of period			(1,152.1	)			(1,301.6	)			(65.9	)			4,120.7				—				1,601.1

27

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating cash flow statement information (continued)

For the year ended 31 December 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Net cash inflow/(outflow) from operating activities			963.1				1,002.2				65.5				(257.0	)			—				1,773.8
Investing activities
Acquisitions and disposals			—				—				—				(638.8	)			—				(638.8	)
Purchases of property, plant and equipment			—				(1.1	)			—				(251.0	)			—				(252.1	)
Purchases of other intangible assets (including capitalised computer software)			—				—				—				(33.0	)			—				(33.0	)
Proceeds on disposal of property, plant and equipment			—				—				—				7.7				—				7.7
Net cash outflow from investing activities			—				(1.1	)			—				(915.1	)			—				(916.2	)
Financing activities
Share option proceeds			27.2				—				—				—				—				27.2
Cash consideration for non-controlling interests			—				(1.3	)			—				(57.0	)			—				(58.3	)
Share repurchases and buy-backs			(274.5	)			—				—				(152.9	)			—				(427.4	)
Net (decrease)/increase in borrowings			(392.1	)			—				—				369.6				—				(22.5	)
Financing and share issue costs			—				—				—				(6.4	)			—				(6.4	)
Equity dividends paid			(616.5	)			—				—				—				—				(616.5	)
Dividends paid to non-controlling interests in subsidiary undertakings			—				—				—				(89.6	)			—				(89.6	)
Net cash (outflow)/inflow from financing activities			(1,255.9	)			(1.3	)			—				63.7				—				(1,193.5	)
Net (decrease)/increase in cash and cash equivalents			(292.8	)			999.8				65.5				(1,108.4	)			—				(335.9	)
Translation differences			(5.7	)			(154.6	)			(13.1	)			465.3				—				291.9
Cash and cash equivalents at beginning of year			(926.5	)			(2,468.9	)			(67.5	)			5,409.5				—				1,946.6
Cash and cash equivalents at end of year			(1,225.0	)			(1,623.7	)			(15.1	)			4,766.4				—				1,902.6

28

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating balance sheet information

At 30 June 2017, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Non-current assets
Intangible assets:
Goodwill			—				—				—				13,082.1				—				13,082.1
Other			—				—				—				2,111.3				—				2,111.3
Property, plant and equipment			—				11.4				—				919.1				—				930.5
Investment in subsidiaries			13,639.6				24,624.5				—				—				(38,264.1	)			—
Interests in associates and joint ventures			—				—				—				1,234.6				—				1,234.6
Other investments			—				—				—				1,171.5				—				1,171.5
Deferred tax assets			—				—				—				143.7				—				143.7
Trade and other receivables			—				—				9.6				204.7				—				214.3
Intercompany receivables			—				245.2				2,160.8				8,029.4				(10,435.4	)			—
			13,639.6				24,881.1				2,170.4				26,896.4				(48,699.5	)			18,888.0
Current assets
Inventory and work in progress			—				—				—				443.2				—				443.2
Corporate income tax recoverable			—				—				—				260.2				—				260.2
Trade and other receivables			0.6				463.4				0.1				10,853.0				—				11,317.1
Intercompany receivables			1,625.2				1,887.2				48.8				2,693.7				(6,254.9	)			—
Cash and short-term deposits			12.8				167.9				—				6,150.4				(3,475.1	)			2,856.0
			1,638.6				2,518.5				48.9				20,400.5				(9,730.0	)			14,876.5
Current liabilities
Trade and other payables			(3.2	)			(48.6	)			(20.3	)			(13,356.1	)			—				(13,428.2	)
Intercompany payables			(2,903.6	)			(3,170.0	)			—				(181.3	)			6,254.9				—
Corporate income tax payable			—				—				—				(637.5	)			—				(637.5	)
Bank overdrafts and loans			(1,588.4	)			(1,955.0	)			(14.0	)			(850.7	)			3,475.1				(933.0	)
			(4,495.2	)			(5,173.6	)			(34.3	)			(15,025.6	)			9,730.0				(14,998.7	)
Net current (liabilities)/assets			(2,856.6	)			(2,655.1	)			14.6				5,374.9				—				(122.2	)
Total assets less current liabilities			10,783.0				22,226.0				2,185.0				32,271.3				(48,699.5	)			18,765.8
Non-current liabilities
Bonds and bank loans			—				—				(2,168.2	)			(4,424.3	)			—				(6,592.5	)
Trade and other payables			—				—				—				(1,119.4	)			—				(1,119.4	)
Intercompany payables			(1,363.7	)			(8,586.4	)			—				(485.3	)			10,435.4				—
Deferred tax liabilities			—				—				—				(688.8	)			—				(688.8	)
Provisions for post-employment benefits			—				—				—				(271.5	)			—				(271.5	)
Provisions for liabilities and charges			—				—				—				(237.0	)			—				(237.0	)
			(1,363.7	)			(8,586.4	)			(2,168.2	)			(7,226.3	)			10,435.4				(8,909.2	)
Net assets			9,419.3				13,639.6				16.8				25,045.0				(38,264.1	)			9,856.6
Attributable to:
Equity share owners’ funds			9,419.3				13,639.6				16.8				24,607.7				(38,264.1	)			9,419.3
Non-controlling interests			—				—				—				437.3				—				437.3
Total equity			9,419.3				13,639.6				16.8				25,045.0				(38,264.1	)			9,856.6

29

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating balance sheet information (continued)

At 30 June 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Non-current assets
Intangible assets:
Goodwill			—				—				—				12,293.5				—				12,293.5
Other			—				—				—				2,036.7				—				2,036.7
Property, plant and equipment			—				7.6				—				918.3				—				925.9
Investment in subsidiaries			11,907.1				22,362.1				—				—				(34,269.2	)			—
Interests in associates and joint ventures			—				—				—				690.8				—				690.8
Other investments			—				—				—				1,303.7				—				1,303.7
Deferred tax assets			—				—				—				94.0				—				94.0
Trade and other receivables			—				—				—				254.9				—				254.9
Intercompany receivables			—				233.3				2,118.4				6,764.6				(9,116.3	)			—
			11,907.1				22,603.0				2,118.4				24,356.5				(43,385.5	)			17,599.5
Current assets
Inventory and work in progress			—				—				—				408.8				—				408.8
Corporate income tax recoverable			—				—				—				224.2				—				224.2
Trade and other receivables			0.2				347.8				0.1				11,403.0				—				11,751.1
Intercompany receivables			1,746.2				1,584.0				70.6				2,826.5				(6,227.3	)			—
Cash and short-term deposits			7.5				356.0				—				4,580.6				(2,796.7	)			2,147.4
			1,753.9				2,287.8				70.7				19,443.1				(9,024.0	)			14,531.5
Current liabilities
Trade and other payables			(116.2	)			(86.7	)			(20.0	)			(13,645.3	)			—				(13,868.2	)
Intercompany payables			(2,784.9	)			(3,264.4	)			—				(178.0	)			6,227.3				—
Corporate income tax payable			—				—				—				(584.0	)			—				(584.0	)
Bank overdrafts and loans			(1,567.6	)			(1,657.6	)			(65.9	)			(562.8	)			2,796.7				(1,057.2	)
			(4,468.7	)			(5,008.7	)			(85.9	)			(14,970.1	)			9,024.0				(15,509.4	)
Net current (liabilities)/assets			(2,714.8	)			(2,720.9	)			(15.2	)			4,473.0				—				(977.9	)
Total assets less current liabilities			9,192.3				19,882.1				2,103.2				28,829.5				(43,385.5	)			16,621.6
Non-current liabilities
Bonds and bank loans			—				—				(2,122.4	)			(3,216.7	)			—				(5,339.1	)
Trade and other payables			—				—				—				(1,122.0	)			—				(1,122.0	)
Intercompany payables			(672.6	)			(7,975.0	)			—				(468.7	)			9,116.3				—
Deferred tax liabilities			—				—				—				(713.0	)			—				(713.0	)
Provisions for post-employment benefits			—				—				—				(260.4	)			—				(260.4	)
Provisions for liabilities and charges			—				—				—				(208.9	)			—				(208.9	)
			(672.6	)			(7,975.0	)			(2,122.4	)			(5,989.7	)			9,116.3				(7,643.4	)
Net assets/(liabilities)			8,519.7				11,907.1				(19.2	)			22,839.8				(34,269.2	)			8,978.2
Attributable to:
Equity share owners’ funds			8,519.7				11,907.1				(19.2	)			22,381.3				(34,269.2	)			8,519.7
Non-controlling interests			—				—				—				458.5				—				458.5
Total equity			8,519.7				11,907.1				(19.2	)			22,839.8				(34,269.2	)			8,978.2

30

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors (continued)

Condensed consolidating balance sheet information (continued)

At 31 December 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Non-current assets
Intangible assets:
Goodwill			—				—				—				13,214.3				—				13,214.3
Other			—				—				—				2,217.3				—				2,217.3
Property, plant and equipment			—				7.1				—				961.6				—				968.7
Investment in subsidiaries			13,356.0				24,162.9				—				—				(37,518.9	)			—
Interests in associates and joint ventures			—				—				—				1,069.4				—				1,069.4
Other investments			—				—				—				1,310.3				—				1,310.3
Deferred tax assets			—				—				—				140.4				—				140.4
Trade and other receivables			—				—				7.0				197.9				—				204.9
Intercompany receivables			—				238.9				2,276.8				7,626.3				(10,142.0	)			—
			13,356.0				24,408.9				2,283.8				26,737.5				(47,660.9	)			19,125.3
Current assets
Inventory and work in progress			—				—				—				400.4				—				400.4
Corporate income tax recoverable			—				—				—				231.2				—				231.2
Trade and other receivables			11.5				377.9				0.1				11,985.0				—				12,374.5
Intercompany receivables			1,628.7				1,690.2				45.9				2,651.1				(6,015.9	)			—
Cash and short-term deposits			13.7				151.8				—				5,300.5				(3,029.1	)			2,436.9
			1,653.9				2,219.9				46.0				20,568.2				(9,045.0	)			15,443.0
Current liabilities
Trade and other payables			(21.0	)			(69.5	)			(21.3	)			(14,898.6	)			—				(15,010.4	)
Intercompany payables			(2,659.2	)			(3,141.1	)			—				(215.6	)			6,015.9				—
Corporate income tax payable			—				—				—				(752.3	)			—				(752.3	)
Bank overdrafts and loans			(1,641.8	)			(1,775.5	)			(15.1	)			(599.2	)			3,029.1				(1,002.5	)
			(4,322.0	)			(4,986.1	)			(36.4	)			(16,465.7	)			9,045.0				(16,765.2	)
Net current (liabilities)/assets			(2,668.1	)			(2,766.2	)			9.6				4,102.5				—				(1,322.2	)
Total assets less current liabilities			10,687.9				21,642.7				2,293.4				30,840.0				(47,660.9	)			17,803.1
Non-current liabilities
Bonds and bank loans			—				—				(2,282.9	)			(3,282.0	)			—				(5,564.9	)
Trade and other payables			—				—				—				(1,273.8	)			—				(1,273.8	)
Intercompany payables			(1,363.4	)			(8,286.7	)			—				(491.9	)			10,142.0				—
Deferred tax liabilities			—				—				—				(692.4	)			—				(692.4	)
Provision for post-employment benefits			—				—				—				(276.5	)			—				(276.5	)
Provisions for liabilities and charges			—				—				—				(227.9	)			—				(227.9	)
			(1,363.4	)			(8,286.7	)			(2,282.9	)			(6,244.5	)			10,142.0				(8,035.5	)
Net assets			9,324.5				13,356.0				10.5				24,595.5				(37,518.9	)			9,767.6
Attributable to:
Equity share owners’ funds			9,324.5				13,356.0				10.5				24,152.4				(37,518.9	)			9,324.5
Non-controlling interests			—				—				—				443.1				—				443.1
Total equity			9,324.5				13,356.0				10.5				24,595.5				(37,518.9	)			9,767.6

31

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors

WPP Finance 2010 has in issue $750 million of 3.750% bonds due September 2024 and $500 million of 5.625% bonds due November 2043, with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors.

The issuer and guarantors of the bonds (issuer and subsidiary guarantors are 100% owned by WPP plc) are each subject to the reporting requirements under section 15(d) of the Securities Exchange Act of 1934. In accordance with SEC Regulation S-X Rule 3-10, condensed consolidating financial information containing financial information for WPP Finance 2010 and the guarantors is presented. Condensed consolidating financial information is prepared in accordance with IFRS as issued by the IASB. In the parent company, subsidiary issuer and subsidiary guarantors columns investments in subsidiaries are accounted for under the equity method of accounting. Under the equity method, earnings of subsidiaries are reflected as “share of results of subsidiaries” in the income statement and as “investment in subsidiaries” in the balance sheet, as required by the SEC.

In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Jubilee Limited and WPP 2005 Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Jubilee Limited and WPP 2005 Limited in obtaining reimbursement for any such payments from WPP Finance 2010.

32

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating income statement information

For the six months ended 30 June 2017, £m

		WPP   plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Revenue			—				—				—				7,403.6				—				7,403.6
Direct costs			—				—				—				(1,041.7	)			—				(1,041.7	)
Net sales			—				—				—				6,361.9				—				6,361.9
Operating costs			(1.7	)			63.5				—				(5,699.3	)			—				(5,637.5	)
Operating profit/(loss)			(1.7	)			63.5				—				662.6				—				724.4
Share of results of subsidiaries			644.3				671.4				—				—				(1,315.7	)			—
Share of results of associates			—				—				—				59.5				—				59.5
Profit before interest and taxation			642.6				734.9				—				722.1				(1,315.7	)			783.9
Finance income			—				12.1				56.8				127.6				(151.6	)			44.9
Finance costs			(47.1	)			(110.4	)			(52.9	)			(74.7	)			151.6				(133.5	)
Revaluation of financial instruments			0.6				—				2.6				80.7				—				83.9
Profit before taxation			596.1				636.6				6.5				855.7				(1,315.7	)			779.2
Taxation			—				7.7				—				(153.2	)			—				(145.5	)
Profit for the period			596.1				644.3				6.5				702.5				(1,315.7	)			633.7
Attributable to:
Equity holders of the parent			596.1				644.3				6.5				664.9				(1,315.7	)			596.1
Non-controlling interests			—				—				—				37.6				—				37.6
			596.1				644.3				6.5				702.5				(1,315.7	)			633.7

For the six months ended 30 June 2016, £m

		WPP    plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Revenue			—				—				—				6,536.5				—				6,536.5
Direct costs			—				—				—				(942.7	)			—				(942.7	)
Net sales			—				—				—				5,593.8				—				5,593.8
Operating costs			7.6				(566.7	)			(0.1	)			(4,481.0	)			—				(5,040.2	)
Operating profit/(loss)			7.6				(566.7	)			(0.1	)			1,112.8				—				553.6
Share of results of subsidiaries			293.3				953.8				—				—				(1,247.1	)			—
Share of results of associates			—				—				—				15.9				—				15.9
Profit/(loss) before interest and taxation			300.9				387.1				(0.1	)			1,128.7				(1,247.1	)			569.5
Finance income			—				15.6				47.1				111.9				(131.5	)			43.1
Finance costs			(53.0	)			(109.4	)			(46.8	)			(44.4	)			131.5				(122.1	)
Revaluation of financial instruments			(2.1	)			—				—				(63.3	)			—				(65.4	)
Profit before taxation			245.8				293.3				0.2				1,132.9				(1,247.1	)			425.1
Taxation			—				—				—				(143.1	)			—				(143.1	)
Profit for the period			245.8				293.3				0.2				989.8				(1,247.1	)			282.0
Attributable to:
Equity holders of the parent			245.8				293.3				0.2				953.6				(1,247.1	)			245.8
Non-controlling interests			—				—				—				36.2				—				36.2
			245.8				293.3				0.2				989.8				(1,247.1	)			282.0

33

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating income statement information (continued)

For the year ended 31 December 2016, £m

		WPP   plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Revenue			—				—				—				14,388.9				—				14,388.9
Direct costs			—				—				—				(1,991.1	)			—				(1,991.1	)
Net sales			—				—				—				12,397.8				—				12,397.8
Operating costs			13.8				(828.2	)			(0.1	)			(9,520.2	)			—				(10,334.7	)
Operating profit/(loss)			13.8				(828.2	)			(0.1	)			2,877.6				—				2,063.1
Share of results of subsidiaries			1,497.4				2,518.2				—				—				(4,015.6	)			—
Share of results of associates			—				—				—				49.8				—				49.8
Profit/(loss) before interest and taxation			1,511.2				1,690.0				(0.1	)			2,927.4				(4,015.6	)			2,112.9
Finance income			—				28.8				121.1				231.9				(301.4	)			80.4
Finance costs			(102.5	)			(222.1	)			(98.8	)			(132.5	)			301.4				(254.5	)
Revaluation of financial instruments			(8.6	)			—				7.0				(46.7	)			—				(48.3	)
Profit before taxation			1,400.1				1,496.7				29.2				2,980.1				(4,015.6	)			1,890.5
Taxation			—				0.7				—				(389.6	)			—				(388.9	)
Profit for the year			1,400.1				1,497.4				29.2				2,590.5				(4,015.6	)			1,501.6
Attributable to:
Equity holders of the parent			1,400.1				1,497.4				29.2				2,489.0				(4,015.6	)			1,400.1
Non-controlling interests			—				—				—				101.5				—				101.5
			1,400.1				1,497.4				29.2				2,590.5				(4,015.6	)			1,501.6

34

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating statement of comprehensive income

For the six months ended 30 June 2017, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Profit for the period			596.1				644.3				6.5				702.5				(1,315.7	)			633.7
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments			(247.7	)			(247.7	)			(0.4	)			(257.4	)			495.4				(257.8	)
Loss on revaluation of available for sale investments			(0.4	)			(0.4	)			—				(0.4	)			0.8				(0.4	)
			(248.1	)			(248.1	)			(0.4	)			(257.8	)			496.2				(258.2	)
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit pension plans			—				—				—				—				—				—
Deferred tax on defined benefit pension plans			—				—				—				—				—				—
			—				—				—				—				—				—
Other comprehensive loss relating to the period			(248.1	)			(248.1	)			(0.4	)			(257.8	)			496.2				(258.2	)
Total comprehensive income relating to the period			348.0				396.2				6.1				444.7				(819.5	)			375.5
Attributable to:
Equity holders of the parent			348.0				396.2				6.1				417.2				(819.5	)			348.0
Non-controlling interests			—				—				—				27.5				—				27.5
			348.0				396.2				6.1				444.7				(819.5	)			375.5

For the six months ended 30 June 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Profit for the period			245.8				293.3				0.2				989.8				(1,247.1	)			282.0
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments			955.3				955.3				(2.0	)			992.9				(1,910.6	)			990.9
Loss on revaluation of available for sale investments			(1.4	)			(1.4	)			—				(1.4	)			2.8				(1.4	)
			953.9				953.9				(2.0	)			991.5				(1,907.8	)			989.5
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit pension plans			—				—				—				—				—				—
Deferred tax on defined benefit pension plans			—				—				—				—				—				—
			—				—				—				—				—				—
Other comprehensive income/(loss) relating to the period			953.9				953.9				(2.0	)			991.5				(1,907.8	)			989.5
Total comprehensive income/(loss) relating to the period			1,199.7				1,247.2				(1.8	)			1,981.3				(3,154.9	)			1,271.5
Attributable to:
Equity holders of the parent			1,199.7				1,247.2				(1.8	)			1,909.5				(3,154.9	)			1,199.7
Non-controlling interests			—				—				—				71.8				—				71.8
			1,199.7				1,247.2				(1.8	)			1,981.3				(3,154.9	)			1,271.5

35

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating statement of comprehensive income (continued)

For the year ended 31 December 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications / Eliminations				Consolidated WPP plc
Profit for the year			1,400.1				1,497.4				29.2				2,590.5				(4,015.6	)			1,501.6
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments			1,309.9				1,309.9				(1.2	)			1,379.2				(2,619.8	)			1,378.0
Loss on revaluation of available for sale investments			(93.1	)			(93.1	)			—				(93.1	)			186.2				(93.1	)
			1,216.8				1,216.8				(1.2	)			1,286.1				(2,433.6	)			1,284.9
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension plans			(15.9	)			(15.9	)			—				(15.9	)			31.8				(15.9	)
Deferred tax on defined benefit pension plans			(0.4	)			(0.4	)			—				(0.4	)			0.8				(0.4	)
			(16.3	)			(16.3	)			—				(16.3	)			32.6				(16.3	)
Other comprehensive income/(loss) for the year			1,200.5				1,200.5				(1.2	)			1,269.8				(2,401.0	)			1,268.6
Total comprehensive income for the year			2,600.6				2,697.9				28.0				3,860.3				(6,416.6	)			2,770.2
Attributable to:
Equity holders of the parent			2,600.6				2,697.9				28.0				3,690.7				(6,416.6	)			2,600.6
Non-controlling interests			—				—				—				169.6				—				169.6
			2,600.6				2,697.9				28.0				3,860.3				(6,416.6	)			2,770.2

36

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating cash flow statement information

For the six months ended 30 June 2017, £m

		WPP   plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Net cash inflow/(outflow) from operating activities			191.5				(184.2	)			0.4				77.9				—				85.6
Investing activities
Acquisitions and disposals			—				—				—				(201.4	)			—				(201.4	)
Purchase of property, plant and equipment			—				(5.4	)			—				(94.6	)			—				(100.0	)
Purchase of other intangible assets (including capitalised computer software)			—				—				—				(19.6	)			—				(19.6	)
Proceeds on disposal of property, plant and equipment			—				—				—				4.0				—				4.0
Net cash outflow from investing activities			—				(5.4	)			—				(311.6	)			—				(317.0	)
Financing activities
Share option proceeds			4.1				—				—				—				—				4.1
Cash consideration for non-controlling interests			—				(0.2	)			—				(39.1	)			—				(39.3	)
Share repurchases and buy-backs			(144.9	)			—				—				(145.3	)			—				(290.2	)
Net increase/(decrease) in borrowings			(400.0	)			—				—				1,294.8				—				894.8
Financing and share issue costs			—				—				—				(0.6	)			—				(0.6	)
Equity dividends paid			—				—				—				—				—				—
Dividends paid to non-controlling interests in subsidiary undertakings			—				—				—				(46.3	)			—				(46.3	)
Net cash inflow/(outflow) from financing activities			(540.8	)			(0.2	)			—				1,063.5				—				522.5
Net increase/(decrease) in cash and cash equivalents			(349.3	)			(189.8	)			0.4				829.8				—				291.1
Translation differences			(1.3	)			26.4				0.7				(8.0	)			—				17.8
Cash and cash equivalents at beginning of period			(1,225.0	)			(1,627.5	)			(15.1	)			4,770.2				—				1,902.6
Cash and cash equivalents at end of period			(1,575.6	)			(1,790.9	)			(14.0	)			5,592.0				—				2,211.5

For the six months ended 30 June 2016, £m

		WPP   plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Net cash inflow/(outflow) from operating activities			311.7				1,270.0				9.1				(1,524.6	)			—				66.2
Investing activities
Acquisitions and disposals			—				—				—				(182.8	)			—				(182.8	)
Purchase of property, plant and equipment			—				(0.4	)			—				(126.3	)			—				(126.7	)
Purchase of other intangible assets (including capitalised computer software)			—				—				—				(15.9	)			—				(15.9	)
Proceeds on disposal of property, plant and equipment			—				—				—				9.7				—				9.7
Net cash outflow from investing activities			—				(0.4	)			—				(315.3	)			—				(315.7	)
Financing activities
Share option proceeds			5.3				—				—				—				—				5.3
Cash consideration for non-controlling interests			—				—				—				(43.4	)			—				(43.4	)
Share repurchases and buy-backs			(148.5	)			—				—				(48.3	)			—				(196.8	)
Net (decrease)/increase in borrowings			(392.1	)			—				—				329.2				—				(62.9	)
Financing and share issue costs			—				—				—				(0.5	)			—				(0.5	)
Equity dividends paid			—				—				—				—				—				—
Dividends paid to non-controlling interests in subsidiary undertakings			—				—				—				(35.0	)			—				(35.0	)
Net cash (outflow)/inflow from financing activities			(535.3	)			—				—				202.0				—				(333.3	)
Net (decrease)/increase in cash and cash equivalents			(223.6	)			1,269.6				9.1				(1,637.9	)			—				(582.8	)
Translation differences			(2.0	)			(102.3	)			(7.5	)			349.1				—				237.3
Cash and cash equivalents at beginning of period			(926.5	)			(2,472.7	)			(67.5	)			5,413.3				—				1,946.6
Cash and cash equivalents at end of period			(1,152.1	)			(1,305.4	)			(65.9	)			4,124.5				—				1,601.1

37

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating cash flow statement information (continued)

For the year ended 31 December 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Net cash inflow/(outflow) from operating activities			963.1				1,002.2				65.5				(257.0	)			—				1,773.8
Investing activities
Acquisitions and disposals			—				—				—				(638.8	)			—				(638.8	)
Purchases of property, plant and equipment			—				(1.1	)			—				(251.0	)			—				(252.1	)
Purchases of other intangible assets (including capitalised computer software)			—				—				—				(33.0	)			—				(33.0	)
Proceeds on disposal of property, plant and equipment			—				—				—				7.7				—				7.7
Net cash outflow from investing activities			—				(1.1	)			—				(915.1	)			—				(916.2	)
Financing activities
Share option proceeds			27.2				—				—				—				—				27.2
Cash consideration for non-controlling interests			—				(1.3	)			—				(57.0	)			—				(58.3	)
Share repurchases and buy-backs			(274.5	)			—				—				(152.9	)			—				(427.4	)
Net (decrease)/increase in borrowings			(392.1	)			—				—				369.6				—				(22.5	)
Financing and share issue costs			—				—				—				(6.4	)			—				(6.4	)
Equity dividends paid			(616.5	)			—				—				—				—				(616.5	)
Dividends paid to non-controlling interests in subsidiary undertakings			—				—				—				(89.6	)			—				(89.6	)
Net cash (outflow)/inflow from financing activities			(1,255.9	)			(1.3	)			—				63.7				—				(1,193.5	)
Net (decrease)/increase in cash and cash equivalents			(292.8	)			999.8				65.5				(1,108.4	)			—				(335.9	)
Translation differences			(5.7	)			(154.6	)			(13.1	)			465.3				—				291.9
Cash and cash equivalents at beginning of year			(926.5	)			(2,472.7	)			(67.5	)			5,413.3				—				1,946.6
Cash and cash equivalents at end of year			(1,225.0	)			(1,627.5	)			(15.1	)			4,770.2				—				1,902.6

38

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating balance sheet information

At 30 June 2017, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Non-current assets
Intangible assets:
Goodwill			—				—				—				13,082.1				—				13,082.1
Other			—				—				—				2,111.3				—				2,111.3
Property, plant and equipment			—				11.4				—				919.1				—				930.5
Investment in subsidiaries			13,639.6				24,455.9				—				—				(38,095.5	)			—
Interests in associates and joint ventures			—				—				—				1,234.6				—				1,234.6
Other investments			—				—				—				1,171.5				—				1,171.5
Deferred tax assets			—				—				—				143.7				—				143.7
Trade and other receivables			—				—				9.6				204.7				—				214.3
Intercompany receivables			—				245.2				2,160.8				8,029.4				(10,435.4	)			—
			13,639.6				24,712.5				2,170.4				26,896.4				(48,530.9	)			18,888.0
Current assets
Inventory and work in progress			—				—				—				443.2				—				443.2
Corporate income tax recoverable			—				—				—				260.2				—				260.2
Trade and other receivables			0.6				463.4				0.1				10,853.0				—				11,317.1
Intercompany receivables			1,625.2				1,887.2				48.8				2,693.7				(6,254.9	)			—
Cash and short-term deposits			12.8				164.1				—				6,154.2				(3,475.1	)			2,856.0
			1,638.6				2,514.7				48.9				20,404.3				(9,730.0	)			14,876.5
Current liabilities
Trade and other payables			(3.2	)			(48.6	)			(20.3	)			(13,356.1	)			—				(13,428.2	)
Intercompany payables			(2,903.6	)			(2,997.6	)			—				(353.7	)			6,254.9				—
Corporate income tax payable			—				—				—				(637.5	)			—				(637.5	)
Bank overdrafts and loans			(1,588.4	)			(1,955.0	)			(14.0	)			(850.7	)			3,475.1				(933.0	)
			(4,495.2	)			(5,001.2	)			(34.3	)			(15,198.0	)			9,730.0				(14,998.7	)
Net current (liabilities)/assets			(2,856.6	)			(2,486.5	)			14.6				5,206.3				—				(122.2	)
Total assets less current liabilities			10,783.0				22,226.0				2,185.0				32,102.7				(48,530.9	)			18,765.8
Non-current liabilities
Bonds and bank loans			—				—				(2,168.2	)			(4,424.3	)			—				(6,592.5	)
Trade and other payables			—				—				—				(1,119.4	)			—				(1,119.4	)
Intercompany payables			(1,363.7	)			(8,586.4	)			—				(485.3	)			10,435.4				—
Deferred tax liabilities			—				—				—				(688.8	)			—				(688.8	)
Provisions for post-employment benefits			—				—				—				(271.5	)			—				(271.5	)
Provisions for liabilities and charges			—				—				—				(237.0	)			—				(237.0	)
			(1,363.7	)			(8,586.4	)			(2,168.2	)			(7,226.3	)			10,435.4				(8,909.2	)
Net assets			9,419.3				13,639.6				16.8				24,876.4				(38,095.5	)			9,856.6
Attributable to:
Equity share owners’ funds			9,419.3				13,639.6				16.8				24,439.1				(38,095.5	)			9,419.3
Non-controlling interests			—				—				—				437.3				—				437.3
Total equity			9,419.3				13,639.6				16.8				24,876.4				(38,095.5	)			9,856.6

39

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating balance sheet information (continued)

At 30 June 2016, £m

		WPP   plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Non-current assets
Intangible assets:
Goodwill			—				—				—				12,293.5				—				12,293.5
Other			—				—				—				2,036.7				—				2,036.7
Property, plant and equipment			—				7.6				—				918.3				—				925.9
Investment in subsidiaries			11,907.1				22,193.5				—				—				(34,100.6	)			—
Interests in associates and joint ventures			—				—				—				690.8				—				690.8
Other investments			—				—				—				1,303.7				—				1,303.7
Deferred tax assets			—				—				—				94.0				—				94.0
Trade and other receivables			—				—				—				254.9				—				254.9
Intercompany receivables			—				233.3				2,118.4				6,764.6				(9,116.3	)			—
			11,907.1				22,434.4				2,118.4				24,356.5				(43,216.9	)			17,599.5
Current assets
Inventory and work in progress			—				—				—				408.8				—				408.8
Corporate income tax recoverable			—				—				—				224.2				—				224.2
Trade and other receivables			0.2				347.8				0.1				11,403.0				—				11,751.1
Intercompany receivables			1,746.2				1,584.0				70.6				2,826.5				(6,227.3	)			—
Cash and short-term deposits			7.5				352.2				—				4,584.4				(2,796.7	)			2,147.4
			1,753.9				2,284.0				70.7				19,446.9				(9,024.0	)			14,531.5
Current liabilities
Trade and other payables			(116.2	)			(86.7	)			(20.0	)			(13,645.3	)			—				(13,868.2	)
Intercompany payables			(2,784.9	)			(3,092.0	)			—				(350.4	)			6,227.3				—
Corporate income tax payable			—				—				—				(584.0	)			—				(584.0	)
Bank overdrafts and loans			(1,567.6	)			(1,657.6	)			(65.9	)			(562.8	)			2,796.7				(1,057.2	)
			(4,468.7	)			(4,836.3	)			(85.9	)			(15,142.5	)			9,024.0				(15,509.4	)
Net current (liabilities)/assets			(2,714.8	)			(2,552.3	)			(15.2	)			4,304.4				—				(977.9	)
Total assets less current liabilities			9,192.3				19,882.1				2,103.2				28,660.9				(43,216.9	)			16,621.6
Non-current liabilities
Bonds and bank loans			—				—				(2,122.4	)			(3,216.7	)			—				(5,339.1	)
Trade and other payables			—				—				—				(1,122.0	)			—				(1,122.0	)
Intercompany payables			(672.6	)			(7,975.0	)			—				(468.7	)			9,116.3				—
Deferred tax liabilities			—				—				—				(713.0	)			—				(713.0	)
Provisions for post-employment benefits			—				—				—				(260.4	)			—				(260.4	)
Provisions for liabilities and charges			—				—				—				(208.9	)			—				(208.9	)
			(672.6	)			(7,975.0	)			(2,122.4	)			(5,989.7	)			9,116.3				(7,643.4	)
Net assets/(liabilities)			8,519.7				11,907.1				(19.2	)			22,671.2				(34,100.6	)			8,978.2
Attributable to:
Equity share owners’ funds			8,519.7				11,907.1				(19.2	)			22,212.7				(34,100.6	)			8,519.7
Non-controlling interests			—				—				—				458.5				—				458.5
Total equity			8,519.7				11,907.1				(19.2	)			22,671.2				(34,100.6	)			8,978.2

40

Notes to the unaudited condensed consolidated interim financial statements (continued)

23. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors (continued)

Condensed consolidating balance sheet information (continued)

At 31 December 2016, £m

		WPP plc				Subsidiary Guarantors				WPP Finance 2010				Other Subsidiaries				Reclassifications/ Eliminations				Consolidated WPP plc
Non-current assets
Intangible assets:
Goodwill			—				—				—				13,214.3				—				13,214.3
Other			—				—				—				2,217.3				—				2,217.3
Property, plant and equipment			—				7.1				—				961.6				—				968.7
Investment in subsidiaries			13,356.0				23,994.3				—				—				(37,350.3	)			—
Interests in associates and joint ventures			—				—				—				1,069.4				—				1,069.4
Other investments			—				—				—				1,310.3				—				1,310.3
Deferred tax assets			—				—				—				140.4				—				140.4
Trade and other receivables			—				—				7.0				197.9				—				204.9
Intercompany receivables			—				238.9				2,276.8				7,626.3				(10,142.0	)			—
			13,356.0				24,240.3				2,283.8				26,737.5				(47,492.3	)			19,125.3
Current assets
Inventory and work in progress			—				—				—				400.4				—				400.4
Corporate income tax recoverable			—				—				—				231.2				—				231.2
Trade and other receivables			11.5				377.9				0.1				11,985.0				—				12,374.5
Intercompany receivables			1,628.7				1,690.2				45.9				2,651.1				(6,015.9	)			—
Cash and short-term deposits			13.7				148.0				—				5,304.3				(3,029.1	)			2,436.9
			1,653.9				2,216.1				46.0				20,572.0				(9,045.0	)			15,443.0
Current liabilities
Trade and other payables			(21.0	)			(69.5	)			(21.3	)			(14,898.6	)			—				(15,010.4	)
Intercompany payables			(2,659.2	)			(2,968.7	)			—				(388.0	)			6,015.9				—
Corporate income tax payable			—				—				—				(752.3	)			—				(752.3	)
Bank overdrafts and loans			(1,641.8	)			(1,775.5	)			(15.1	)			(599.2	)			3,029.1				(1,002.5	)
			(4,322.0	)			(4,813.7	)			(36.4	)			(16,638.1	)			9,045.0				(16,765.2	)
Net current (liabilities)/assets			(2,668.1	)			(2,597.6	)			9.6				3,933.9				—				(1,322.2	)
Total assets less current liabilities			10,687.9				21,642.7				2,293.4				30,671.4				(47,492.3	)			17,803.1
Non-current liabilities
Bonds and bank loans			—				—				(2,282.9	)			(3,282.0	)			—				(5,564.9	)
Trade and other payables			—				—				—				(1,273.8	)			—				(1,273.8	)
Intercompany payables			(1,363.4	)			(8,286.7	)			—				(491.9	)			10,142.0				—
Deferred tax liabilities			—				—				—				(692.4	)			—				(692.4	)
Provision for post-employment benefits			—				—				—				(276.5	)			—				(276.5	)
Provisions for liabilities and charges			—				—				—				(227.9	)			—				(227.9	)
			(1,363.4	)			(8,286.7	)			(2,282.9	)			(6,244.5	)			10,142.0				(8,035.5	)
Net assets			9,324.5				13,356.0				10.5				24,426.9				(37,350.3	)			9,767.6
Attributable to:
Equity share owners’ funds			9,324.5				13,356.0				10.5				23,983.8				(37,350.3	)			9,324.5
Non-controlling interests			—				—				—				443.1				—				443.1
Total equity			9,324.5				13,356.0				10.5				24,426.9				(37,350.3	)			9,767.6

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