WPPGY

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Research Note

WPP plc (WPPGY)
Upgrading WPP to OUTPERFORM on BRICs-Led Breakout, Research Revival and Diminishing Discount
• We base our upgrade on three differentiated views: 1) we raise our outlook for 2010 growth in WPP’s faster-growing markets, so that our EPS estimate goes 4% above consensus; 2) market research – where WPP has higher-than-average exposure, should recover as fast or faster than other disciplines next year; and 3) WPP’s valuation discount to OMC ($36.77-OUTPERFORM) should further dissipate, given its better organic revenue growth outlook. • We raise our 2010 estimate for ”rest-of-world” growth to +6.9% from +4.7%. This results in our raising our 2010 organic revenue growth estimate to +1.6% from +1.0%. We assume that the roughly 20% of WPP’s business coming from faster-growing markets (anchored by the BRIC countries – Brazil, Russia, India and China) will contribute ~1.6 points of growth, while the remaining regions, including North America (where WPP has been gaining share), U.K., Western Europe, Japan, Korea and Australia will net out to be roughly flat. We believe our estimate of 20% of revenue from faster-growing markets is conservative, as it is primarily based on mix figures from 2008, which likely increased in 2009, given the greater decline in marketing spending in the U.S., Europe and developed Asia. We see three tailwinds for WPP’s growth in these emerging markets: 1) a rebound in GDP growth, 2) a rebound in multinational spending in these markets, in part in response to strong spending by local competitors this year, and 3) an increase of the below-average ratio of marketing spend/GDP in these regions. • We hear that client discussions about doing more project-based work, and market research in particular, have increased noticeably recently, which could help WPP in particular. Over 25% of WPP’s revenue comes from the Consumer Insight segment, which should most benefit from the uptick in market research in an advertising recovery. • We expect WPPGY’s P/E discount to OMC and SPX to decline on cyclical expansion and improved perception of top-line growth. By our estimates, in 2010, WPP should post a second consecutive year of organic growth above OMC’s, which should contribute to a further reduction of WPP’s valuation discount to OMC. • Raising 2010 estimates to £8,793m, £1,146m and 50.1p in revenue, headline operating profit and headline EPS, from £8,699m, £1,130m and 47.8p, respectively. We take our estimates for organic, acquisition and f/x revenue growth to +1.6%, +0.5% and -0.9% from +1.0%, 0.0% and -0.9%, respectively. Our 2010E headline operating margin remains 13.0%, up from the 11.7% we estimate for 2009.

December 7, 2009 Price (as of close on 12/4/09)

$48.19
Rating

OUTPERFORM (from NEUTRAL)
12- Month Price Target

$57 (from $46)
James Dix, CFA (213) 688-4315 james.dix@wedbush.com

Company Information 52-Week Range Shares Outstand. Insider/Institutional Public Float Market Cap. Long Term Debt Debt/Capital ROE Cash & Inv/Share Book Value/Share $24.54-$49.43 1.25 Billion 1.4% / 98.6% 1.18 Billion $12.1 Billion $7.46 Billion 49% 8.7% $0.88 $36.09

Company Description
WPP Plc provides communications services worldwide through its four operating segments, Advertising and Media Investment Management, Information Insight & Consultancy, Public Relations and Public Affairs and Branding & Identity, Healthcare and Specialist Communications. The Group operates in the United Kingdom, North America, Continental Europe, Asia Pacific, Latin America, Africa and Middle East.

• Our $57 price target assumes ~10% discount to S&P P/E, down from prior ~20% to

Media and Entertainment: Advertising

reflect better top line and progress to cyclical expansion; risks. Risks to our rating and attainment of our price target include: variance from our headline operating margin expectations (-330bps/+130bps in 2009/10), variance from expected organic growth (7.9%/+1.6% for 2009/10) due to company-specific business or geographic exposures.
FYE DEC REV. ($m) Q1 Q2 1H Q3 Q4 2H Year Change EPS 1H 2H Year P/E Ratio Change 2008A ACTUAL £1,558.0A 1,781.1A 3,339.1A 1,719.3A 2,418.5A 4,137.8A £7,476.9A ----2008A ACTUAL £0.218A 0.338A £0.555A 10.6x ----CURR. £2,116.6A £2,172.1A £4,288.7A £2,007.2A 2,388.4E 4,395.6E £8,684.3E 16.1% CURR. £0.129E 0.314E £0.443E 13.2x Nmf 2009E PREV. £2,116.6A 2,172.1A 4,288.7A 2,007.2A 2,388.4E 4,395.6E £8,684.3E 16.1% 2009E PREV. £0.129A 0.313E £0.443E 13.2x Nmf CONS. CURR. 2010E PREV. CONS.

£8,696.1E 16.3% CONS. 0.299E £0.436E 13.4x -1.6%

£8,793.1E 1.3% CURR.

£8,698.6E 0.2% 2010E PREV.

£8,602.7E -1.1% CONS.

£0.501E 11.7x 13.2%

£0.478E 12.3x 8.0%

£0.480E 12.2x 10.1%

www.nasdaq.com

Wedbush Securities does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see page 9 of this report for analyst certification and important disclosure information.

ONE KEY DRIVER OF UPGRADE IS ANALYSIS OF FASTER-GROWING MARKETS
Figure 1: We estimate that WPP could generate ~1.6 points of growth from its faster-growing markets in 2010
WPP's 2010E Growth from Faster-Growing Markets
(1)
2010E Media & Marketing Grth

2010E GDP Grth ($US) (4) Nominal GroupM 6/09 6.3% 8.6% 6.2% 4.2% 8.6% (5) (6) (7) (8) M&M/ GDP M&M/ Grth GDP (1) (2) 1.7 1.0% 1.1 1.0% 1.7 0.7% 1.5 0.6% 0.9 0.4% NM NA

(2) WPP Growth WS Est. 10% 9% 10% 6% 8% -5% 8.2% 1.6%

Geographic region Latin America (including Brazil) China Southeast Asia Emerging Europe (including Russia) India Other Emerging Total/Weighted Avg Contribution to WPP's Consolidated Organic Growth Memo: Brazil Mexico Russia
(1) GroupM. (2) GroupM, 2008 figures.

% of WPP Revenue 6% 5% 3% 3% 2% 1% 20%

(3) Market GrowthGroupM 6/09 10.5% 9.7% 10.4% 6.4% 7.8%

Real GroupM Real 6/09 OECD/IMF 7.8% 10.2%

8.6%

7.3%

3.1% 0.8% 1.1%

13.0% 5.0% 9.1%

6.7% 3.9% 14.8%

2.6% 0.4% 4.5%

4.8% 3.3% 4.9%

1.9 1.3 0.6

1.5% 0.4% 0.6%

Note: 2010E real GDP growth for Mexico is from IMF. GroupM estimates are from This Year Next Year, Summer 2009. Source: GroupM, OECD, IMF, Company data and Wedbush Securities estimates.

We explain our analysis of WPP’s 2010 organic revenue growth from faster-growing markets, as set forth in Figure 1: • • In column (1), we give our estimates of WPP’s revenue mix from the various regions. Note that China includes Mainland China, Hong Kong and Taiwan. In column (2), we give our estimates for WPP’s growth in these regions in 2010. We conclude that WPP’s organic revenue growth in these markets will be a little over 8%, contributing ~1.6 points of organic revenue growth on a consolidated basis. We see the primary drivers in 2010 as Latin America, China, and Southeast Asia. In column (3), we set forth the corresponding 2010 media and marketing spending growth estimates for these regions in the summer 2009 forecast of WPP’s GroupM. We had to make some estimates regarding weighting for some of the regions in this analysis. In columns (4) and (5), we set forth the corresponding nominal and real 2010 GDP growth assumptions in GroupM’s summer 2009 forecast. In column (6), we give examples of more recent GDP forecasts by the OECD and the IMF. The key point is that for regions like China, Brazil and Mexico, the outlook for 2010 GDP growth now appears to be better than it was at the time of the prior GroupM forecast. In particular, we note that GroupM’s mid-year forecast assumed 2010 real GDP growth of roughly 7.8% for China, 2.6% for Brazil, and 0.4% for Mexico. More recent forecasts for GDP growth from the OECD (which did a comprehensive update in late November) and the IMF (among others) are higher: 10.2% for China, 4.8% for Brazil, and 3.3% for Mexico. This suggests to us that the outlook for media and marketing spending growth in these regions has likely improved as well. In column (7), we give estimates, based on prior GroupM forecasts for 2010 growth, of the current expectation for the ratio of media and marketing spending growth to GDP growth for the various regions. In most cases, media and marketing growth is expected to over-index GDP growth. Thus, increases in the GDP growth outlook in these regions could lead to even higher proportional increases in media and marketing spending growth. Finally, in column (8), we see that the share of GDP accounted for by media and marketing spending in these faster-growing markets is generally well below the share in more developed countries (e.g., 1.7% for the U.S. using 2008 figures). Thus, media and marketing spending growth in excess of GDP growth in these regions in 2010 would simply be moving them closer to the patterns already seen in the more developed markets.

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2 | WPP plc

James Dix (213) 688-4315

ANOTHER KEY DRIVER OF UPGRADE IS OUTLOOK FOR IMPROVED VALUATION
Figure 2: We estimate that WPP could generate ~1.6 points of growth from its faster-growing markets in 2010

Relationship between OMC's Valuation and Growth Premiums Relative to WPP
Ratio of Trailing P/E, OMC-to-WPP, Year-End OMC - WPP Organic Growth, Following Year 2000 2001 2002 2003 107.2% 104.4% 101.4% 127.2% 11.5% 7.4% 3.9% 2.6% 2004 2005 2006 2007 2008 2009E 99.4% 106.3% 122.4% 110.6% 116.5% 108.1% 1.8% 2.2% 2.1% 0.2% -1.6% 3.7%

Source: Company data, Thomson Baseline, and Wedbush Securities estimates.

We believe that WPP’s P/E valuation will continue to close the gap on the SPX as the advertising recovery unfolds, in line with historical patterns. On our current 2009/2010 estimates, WPP is trading at 13.2x/11.7x versus OMC at 14.4x/13.7x and the SPX at 18.6x/15.3x, respectively. Moreover, we believe the valuation discount of WPP to OMC shares is likely to decline further as the market incorporates higher expectations for WPP’s organic growth. This decade, there has been a tendency for OMC’s premium to WPP to increase as investors expected OMC to post superior organic revenue growth. For example, OMC’s trailing P/E was at a 7% premium to WPP’s at the end of 2000, and in 2001 OMC’s organic revenue growth was over 11 points higher than WPP’s. Conversely, OMC’s trailing P/E was roughly in line with WPP’s at the end of 2004, and in 2005 OMC’s organic growth was less than two points higher than WPP’s. Despite the fact that WPP is on track to a smaller organic revenue decline than OMC in 2009, OMC is still trading at a roughly 8% premium on a trailing P/E basis. Indeed, based on past patterns, this would seem to imply that the market is discounting the relatively unlikely scenario that OMC grows 3-4 points faster than WPP next year (see the projection in the 2009 column of Figure 2). We believe that, as the market gives WPP more credit for its relatively better organic growth profile, WPP’s trading discount to OMC will decline further.

Figure 3: Relative P/E vs S&P for IPG, Omnicom, Publicis and WPP
Relative Trailing  PE vs S&P 500
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

ay ‐8 9

ay ‐9 0

ay ‐9 2

ay ‐9 3

ay ‐9 5

‐9 6

ay ‐9 7

ay ‐9 1

ay ‐9 4

‐9 8

ay ‐9 9

0

ay ‐0 1

ay ‐0 2

ay ‐0 3

ay ‐0 4

ay ‐0 5

ay ‐0 7

M ay ‐0

M ay

M ay

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

IPG  

OMC  

WPPGY

PUBGY

Source: Thomson Baseline and Wedbush Securities estimates We believe that much of the recent rally in WPP’s shares has been on WPP’s gaining share in North America and greater investor confidence in margin improvement. Our call is rather to encourage investors to get in front of the improving outlook for WPP’s top line growth in the emerging markets, and the resulting improvement in valuation that should follow from that. Our 2010 organic revenue growth estimate of +1.6% is above consensus and as well as the company’s outlook – not really guidance – that 2010 growth should be flattish. Of course, we do recognize that WPP’s growth may not precisely correlate with the overall media and marketing spending growth in its markets, which is one risk to our above-consensus view.

James Dix (213) 688-4315

M

ay ‐0 9

ay ‐0 6

ay ‐0 8

WPP plc | 3

Figure 4: Our 2010 estimates are now 2% above Street on revenue and 4% above on headline EPS
WPP ‐ Summary of Annual Estimates
( £m, except per share)
% Chg YoY Last Yr OLD CHG NEW OLD CHG NEW Consensus WS vs Consensus

2009E
Pro Forma Proforma Revenue Proforma Opex Proforma EBITDA As Reported Revenue Opex EBITDA
  Margin

£7,477           5,891           1,291

£6,889 £0 £6,889        7,129             ‐         7,129       1,239              ‐          1,239

‐7.9% 21.0% ‐4.0%

0.0% 0.0% 0.0%

‐7.9% 21.0% ‐4.0%

Headline PBIT
Headline Margin

Headline Diluted EPS Metrics Organic rev growth Acquisition rev growth F/X

7,477 5,891 1,291 17.3% 1,118 15.0% £0.555 2.7% 6.3% 11.9%

8,684 0 8,684 7,129 0 7,129 1,239 0 1,239 14.3% 0.0% 14.3%       1,012              ‐          1,012 11.7% 0.0% 11.7% £0.443 £0.000 £0.443 ‐7.9% 13.8% 10.2% 0.0% 0.0% 0.0% ‐7.9% 13.8% 10.2%

16.1% 21.0% ‐4.0% ‐300 ‐9.5% ‐330 ‐28.6%

0.0% 0.0% 0.0% 0 0.0% 0 0.0%

16.1% 8,696 21.0% ‐4.0% 1,191 ‐300 13.7% ‐9.5% 1,013 ‐330 11.6% ‐28.6%           0.44

‐0.1% 4.1% 58 ‐0.1% 1 1.6%

2010E

Guidance: 10/30 FX up 10%

Pro Forma Proforma Revenue Proforma Opex Proforma EBITDA As Reported Revenue Opex EBITDA
  Margin

£8,684           7,129           1,239

£8,775 £51 £8,826        7,025               73         7,097       1,350               23          1,373

1.0% ‐1.5% 8.9%

0.6% 1.0% 1.8%

1.6% ‐0.4% 10.8%

Headline PBIT
Headline Margin

Headline Diluted EPS Metrics Organic rev growth Acquisition rev growth F/X

8,684 7,129 1,239 14.3%           1,012 11.7% £0.443 ‐7.9% 13.8% 10.2%

8,699 94 8,793 7,025 73 7,097 1,350 23 1,373 15.5% 0.1% 15.6%       1,130               16          1,146 13.0% 0.0% 13.0% £0.478 £0.023 £0.501 1.0% 0.0% ‐0.9% 0.6% 0.5% 0.0% 1.6% 0.5% ‐0.9%

0.2% ‐1.5% 8.9% 125 11.6% 134 8.0%

1.1% 1.0% 1.8% 9 1.6% 4 5.2%

1.3% 8,603 ‐0.4% 10.8% 1,263 134 14.7% 13.2% 1,102 138 12.8% 13.2%           0.48

2.2% 8.7% 93 4.0% 22 4.5%

2011E
Pro Forma Proforma Revenue Proforma Opex Proforma EBITDA As Reported Revenue Opex EBITDA
  Margin

£8,826           7,097           1,373

£9,058 £9,058         7,300         7,300          1,469          1,469

2.6% 2.9% 7.0%

0.0% 0.0% 0.0%

2.6% 2.9% 7.0%

Headline PBIT
Headline Margin

Headline Diluted EPS Metrics Organic rev growth Acquisition rev growth F/X

8,793 7,097 1,373 15.6%           1,146 13.0% £0.501 1.6% 0.5% ‐0.9%

9,102 9,102 7,300 7,300 1,469 1,469 16.1% 16.1%          1,232          1,232 13.5% 13.5% £0.540 £0.540 3.0% 0.5% 0.0% 3.0% 0.5% 0.0%

3.5% 2.9% 7.0% 53 7.5% 51 7.6%

0.0% 0.0% 0.0% 0 0.0% 0 0.0%

3.5% 8,899 2.9% 7.0% 1,360 53 15.3% 7.5% 1,116 51 12.5% 7.6%           0.52

2.3% 8.0% 86 10.4% 100 2.9%

Source: Company reports, Wedbush Securities estimates

4 | WPP plc

James Dix (213) 688-4315

Figure 5: WPP revenue by geography: in 2010, we see slight growth in U.S. offset by decline in Europe
In millions of  £, except per share data Revenue by Geography North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East      Total Int'l Revenue    Total Revenue YOY Like‐for‐Like Growth North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East   International Total Like‐for‐Like Revenue Growth Acquisition Revenue Growth % North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East   International Total Acquisition Revenue Growth Forex Impact % North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East   International Total Forex Impact % YOY Reported Growth North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East      Total Int'l Revenue Total Reported Revenue Growth Revenue Mix by Geography North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East      Total Int'l Revenue    Total Revenue Contribution to YOY Reported Growth North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East      Total Int'l Revenue Total Reported Revenue Growth 2‐Yr CAGR of Like‐for‐Like Growth by Geography North America United Kingdom Continental Europe Asia Pacific, Latin America, Africa, & The Middle East      Total Int'l Revenue Total Organic Revenue Growth ‐ 2‐Yr CAGR
Source: Company data and Wedbush Securities estimates

2006       2,291.1          856.3       1,532.9       1,227.5       3,616.7       5,907.8 2006 4.6% 1.8% 5.1% 9.6% 5.9% 5.4% 2006 5.7% 4.2% 3.9% 8.7% 5.4% 5.5% 2006 ‐1.6% 0.0% ‐0.3% ‐1.2% ‐0.6% ‐1.0% 2006 8.7% 6.0% 8.7% 17.1% 10.7% 9.9% 2006 38.8% 14.5% 25.9% 20.8% 61.2% 100.0% 2006 34.5% 9.0% 23.0% 33.5% 65.5% 100.0% 2006 5.2% 1.8% 4.0% 10.7% 5.6% 5.4%

1H07     1,111.6         430.4         771.6         607.4     1,809.4     2,921.0 1H07 5.1% 2.3% 3.1% 10.9% 5.4% 5.3% 1H07 3.2% 1.4% 2.9% 1.0% 1.9% 2.4% 1H07 ‐10.4% 0.0% ‐1.9% ‐5.8% ‐2.6% ‐5.7% 1H07 ‐2.1% 3.7% 4.1% 6.1% 4.7% 2.0% 1H07 38.1% 14.7% 26.4% 20.8% 61.9% 100.0% 1H07 ‐42.2% 27.0% 53.4% 61.8% 142.2% 100.0% 1H07 4.8% 1.7% 3.8% 10.1% 5.4% 5.1%

2H07     1,155.1         459.9         885.8         764.1     2,109.8     3,264.9 2H07 2.5% 1.9% 4.6% 10.9% 6.1% 4.7% 2H07 4.4% 2.4% 3.3% 4.4% 3.7% 4.0% 2H07 ‐7.0% 0.0% 4.0% 1.4% 2.0% ‐1.4% 2H07 0.0% 4.2% 11.9% 16.6% 11.8% 7.3% 2H07 35.4% 14.1% 27.1% 23.4% 64.6% 100.0% 2H07 ‐0.2% 8.4% 42.6% 49.2% 100.2% 100.0% 2H07 3.6% 2.1% 5.1% 10.3% 6.2% 5.2%

2007       2,266.7          890.3       1,657.4       1,371.5       3,919.2       6,185.9 2007 3.8% 2.1% 3.9% 10.9% 5.8% 5.0% 2007 3.8% 1.9% 3.1% 2.8% 2.8% 3.2% 2007 ‐8.7% 0.0% 1.1% ‐2.0% ‐0.2% ‐3.5% 2007 ‐1.1% 4.0% 8.1% 11.7% 8.4% 4.7% 2007 36.6% 14.4% 26.8% 22.2% 63.4% 100.0% 2007 ‐8.8% 12.2% 44.8% 51.8% 108.8% 100.0% 2007 4.2% 1.9% 4.5% 10.2% 5.8% 5.2%

2008         2,603.2            954.2         1,903.0         2,016.5         4,873.7         7,476.9 2008 ‐0.3% 2.2% 2.3% 8.4% 4.4% 2.7% 2008 4.9% 5.0% 7.3% 8.5% 7.1% 6.3% 2008 10.2% 0.0% 5.2% 30.1% 12.8% 11.9% 2008 14.8% 7.2% 14.8% 47.0% 24.4% 20.9% 2008 34.8% 12.8% 25.5% 27.0% 65.2% 100.0% 2008 26.1% 4.9% 19.0% 50.0% 73.9% 100.0% 2008 1.7% 2.1% 3.1% 9.6% 5.1% 3.8%

2009E      2,952.3      1,037.2      2,305.7      2,389.2      5,732.0      8,684.3 2009E ‐8.8% ‐7.0% ‐9.8% ‐3.6% ‐7.7% ‐7.9% 2009E 8.9% 15.4% 22.1% 13.0% 16.5% 13.8% 2009E 12.7% 0.0% 9.5% 11.1% 8.8% 10.2% 2009E 13.4% 8.7% 21.2% 18.5% 17.6% 16.1% 2009E 34.0% 11.9% 26.5% 27.5% 66.0% 100.0% 2009E 28.9% 6.9% 33.3% 30.9% 71.1% 100.0% 2009E ‐4.6% ‐2.5% ‐3.9% 2.2% ‐1.8% ‐2.7%

2010E     2,953.7     1,042.4     2,255.0     2,542.0     5,839.4     8,793.1 2010E 0.5% 0.0% ‐1.7% 6.9% 2.2% 1.6% 2010E 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 2010E ‐1.0% 0.0% ‐1.0% ‐1.0% ‐0.8% ‐0.9% 2010E 0.0% 0.5% ‐2.2% 6.4% 1.9% 1.3% 2010E 33.6% 11.9% 25.6% 28.9% 66.4% 100.0% 2010E 1.3% 4.8% ‐46.6% 140.5% 98.7% 100.0% 2010E ‐4.2% ‐3.6% ‐5.8% 1.5% ‐2.9% ‐3.2%

2011E     3,042.3     1,063.2     2,288.8     2,707.2     6,059.3     9,101.6 2011E 2.5% 1.5% 1.0% 6.0% 3.3% 3.0% 2011E 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 2011E 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2011E 3.0% 2.0% 1.5% 6.5% 3.8% 3.5% 2011E 33.4% 11.7% 25.1% 29.7% 66.6% 100.0% 2011E 28.7% 6.8% 11.0% 53.6% 71.3% 100.0% 2011E 1.5% 0.7% ‐0.4% 6.4% 2.7% 2.3%

James Dix (213) 688-4315

WPP plc | 5

FINANCIAL MODELS
Figure 6: WPP – Income Statement Forecast
(£m, except per share) 2005 Revenue Overall Growth Rate(YOY)   FX Impact     FX Impact YOY%   Acquisitions, Net of Divestitures     Acquisition % of Total Revenues      North America Acquisitions      International Acquisitions Pro Forma Revenue   Organic Revenue Change   Organic Growth Rate (YOY) Direct Costs Gross Profit Operating Expenses  Operating Expense % Headline PBIT Headline Operating Margin % YOY Growth % Incremental Margin Depreciation and Amortization As % of Revenue Headline EBITDA (or Cash EBITDA) Headline EBITDA Margin % Overall Growth Rate(YOY) £5,373.7 2006 2007 £6,185.9 4.7%            (206.3) ‐3.5%             189.0 3.1%               87.1             102.0 £6,203.2             295.4 5.0% £335.5 £5,850.4 £4,922.4 79.6% £928.0 15.0% 8.0% 2008 £7,476.9 20.9%              734.3 11.9%              389.7 5.2%              111.1              278.6 £6,352.9             167.0 2.7% £467.5 £7,009.4 £5,891.2 78.8% £1,118.2 15.0% 20.5% 14.7% 173.0 2.3% £1,291.2 17.3% 20.3% £5,907.8 9.9%               89.6             (51.6) ‐1.0%             748.1            295.6 13.9% 5.0%             332.0            120.1             416.1            175.5 £4,536.0 £5,663.9            290.2 5.4% £241.0 £5,132.7 £4,377.9 81.5% £754.8 14.0% £296.8 £5,611.0 £4,752.0 80.4% £859.0 14.5% 13.8%
Guidance: 10/30 FX up 10%

1H09 £4,288.7 28.4%            662.4 19.8%            565.3 16.9%            105.5            459.9 £3,060.9           (278.2) ‐8.3% £333.6 £3,955.1 3,612.9 84.2% £342.2 8.0% ‐24.5% ‐11.7% 113.5 2.6% £455.7 10.6% ‐14.3%

2H09E £4,395.6 6.2%               96.9 2.3%            470.1 11.4%            124.9            345.2 £3,828.6           (309.2) ‐7.5% £209.4 £4,186.2 3,516.3 80.0% £670.0 15.2% 0.8% 2.0% 113.5 2.6% £783.5 17.8% 3.2%

2009E £8,684.3 16.1%               759.4 10.2%           1,035.5 13.8%               230.4               805.1 £6,889.5             (587.4) ‐7.9% £543.0 £8,141.3 £7,129.2 82.1% £1,012.2 11.7% ‐9.5% ‐8.8% 227.0 2.6% £1,239.2 14.3% ‐4.0%

2010E £8,793.1 1.3%                 (76.5) ‐0.9%                  43.4 0.5%                  14.8                  28.7 £8,826.1                141.8 1.6% £549.8 £8,243.3 £7,097.4 80.7% £1,145.9 13.0% 13.2% NM 227.0 2.6% £1,372.9 15.6% 10.8%

2011E £9,101.6 3.5%                 ‐ 0.0%               44.0 0.5%               14.8               29.2 £9,057.6              264.5 3.0% £569.1 £8,532.5 £7,300.2 80.2% £1,232.3 13.5% 7.5% 17.7% 236.6 2.6% £1,468.9 16.1% 7.0%

Guidance: 8/26 implied down like 1H

Guidance: 10/30 targeting 2H08 levels PF TNS (15.3%)

Guidance: 8/26 should increase YoY if revenue flat

122.1 2.3% £876.9 16.3%

142.6 2.4% £1,005.6 17.0% 14.7%

144.4 2.3% £1,073.2 17.3% 6.7%

Reconciliation to Headline PBIT: Amortization and impairment of acquired intangible a               25.3 Goodwill impairment               46.0 Goodwill write‐down relating to utlization of pre‐acqu                 1.1 Gains on disposal of investments                (4.3) Investment write‐downs                 ‐ Costs of changes to corporate structure                 ‐ Share of exceptional losses/gains of associates                 ‐ Headline Adjustments               68.1 Income from Associates Operating Profit pre‐goodwill/intangibles Goodwill/ Intangibles/ FA gains Operating Income (EBIT) Income from Associates Operating Income (PBIT) Operating Margin % Operating Income YOY Growth Finance Cost Finance Income Net Interest Expense Revaluation of financial instruments Gains on termination of hedge accounting‐TNS  Headline Finance Cost Pretax Income (PBT) Headline PBT Income Taxes Effective Tax Rate    Headline Taxes (excluding net deferred tax credits) Headline PBT Tax Rate    Minority Interest, net of Tax Headline Earnings (for Basic EPS) Headline Earnings Adjustment for Basic vs. Diluted Profit after tax (Before Equity Investments) Headline Earnings (for Diluted DPS) Reported Net Income from Continuing Operations Preferred Dividends Allocation to Participating Securities Net Earnings from Discontinued Operations Reported Net Income (for Basic EPS) Reported Net Income adjust for Basic vs. Diluted Reported Net Income (for Diluted EPS) Diluted Reported EPS, Net of Extraordinary Items Growth (YOY) Diluted Headline EPS Growth (YOY) Shares Outstanding ‐ Diluted
Source:  Company data and Wedbush estimates.

             43.3              35.5                8.8               (7.3)                ‐                ‐               (4.0)              76.3              37.1 £821.9              80.3 £741.6              37.1 £782.7 13.2% 14.0%

              40.3               44.1                 1.7                (3.4)                 ‐                 ‐                (0.8)               81.9               40.6 £887.4               82.7 £804.7               40.6 £846.1 13.7% 8.1%

              78.4               84.1                  1.5                (3.4)               30.5                  4.6                  0.5             196.2               46.5 £1,071.7             195.7 £876.0               46.5 £922.5 12.3% 9.0%

             88.1              40.0                ‐               (8.4)                 4.3                ‐               (0.3)            123.7              19.8 £322.4            123.7 £198.7               19.8 £218.5 5.1%

             88.1              40.0                ‐               (8.4)                 4.3                ‐               (0.3)            123.7              25.8 £644.2            116.3 £527.9               25.8 £553.7 12.6%

             176.3                 80.0                   ‐               (16.8)                   8.6                   ‐                 (0.6)              247.5

             176.3                80.0                  ‐                  ‐                  ‐                  ‐                  ‐              256.3

           176.3               80.0                 ‐                 ‐                 ‐                 ‐                 ‐            256.3

              33.9 £720.9               68.1 £652.8               33.9 £686.7 12.8%

                45.6                46.2               47.8 £966.6 £1,099.7 £1,184.5

             240.0              217.9            228.9 £726.6 £881.8 £955.5

                45.6                46.2               47.8 £772.2 8.9% ‐16.3% £928.0 10.6% 20.2% £1,003.3 11.0% 8.1%

            182.3            211.7             266.1             344.8            171.9            171.9              343.8              343.8            343.8 (87.6) (111.0) (139.4) (169.6) (132.7) (132.7) (265.4) (265.4) (265.4) 94.7 100.7 126.7 175.2 39.2 39.2 78.4 78.4 78.4                 8.9               85.8 £592.0                8.0              92.7 £682.0               16.0             110.7 £719.4               25.4             149.8 £747.3             (25.6)             (25.6)               (51.2)               (79.7)             (90.6)             (25.2)             (25.2)               (50.4)               (50.4)             (50.4)              90.0              90.0              180.0              208.5            219.4 £179.3 £514.5 £693.8 £849.6 £924.9

            669.0            766.3             817.3             968.4            252.2            580.0 £199.40 £204.30 £232.9 £41.0 £154.3 £194.00 32.8% 29.2% 28.4% 31.2% 22.9% 30.0%             194.0 29.0% (34.1) 440.9 (0.0) 398.0 £440.9 363.9 0.0 0.0 £363.9 (0.0) 363.9 £0.297            199.4 26.0% (46.8) 520.1 1.1 482.6 £521.2 435.8 0.0 0.0 £435.8 1.1 436.9 £0.352             207.1 25.3% (49.2) 561.0 0.9 515.1 £561.9 465.9 0.0 0.0 £465.9 0.9 466.8 £0.380             245.3 25.3% (74.8) 648.3 0.8 514.4 £649.1 439.6 0.0 0.0 £439.6 0.3 439.9 £0.376 (1.1%) £0.555 21.1% 1,169.6              63.0 25.0% (29.9) 159.3 0.0 138.3 £159.3 108.4 0.0 0.0 £108.4 0.0 108.4 £0.088            145.0 25.0% (44.9) 390.1 0.0 360.1 £390.1 315.2 0.0 0.0 £315.2 0.0 315.2 £0.253

832.2                937.4           1,012.9 £195.3 £254.9 £277.5 28.2% 30.0% 30.0%              208.0              234.3            253.2 25.0% 25.0% 25.0% (74.8) 549.3 0.0 498.4 £549.3 423.6 0.0 0.0 £423.6 0.0 423.6 £0.342 (9.2%) £0.443 (20.2%) 1,240.0 (74.8) 628.2 0.0 594.7 £628.2 519.9 0.0 0.0 £519.9 0.0 519.9 £0.415 21.5% £0.501 13.2% 1,252.8 (74.8) 684.9 0.0 647.5 £684.9 552.7 0.0 0.0 £552.7 0.0 552.7 £0.436 5.0% £0.540 7.6% 1,268.8

£0.360

£0.420

£0.459

£0.129

£0.314

1,224.8

1,242.2

1,227.1

1,235.6

1,244.0

6 | WPP plc

James Dix (213) 688-4315

Figure 7: WPP – Cash Flow Statement Forecast
In millions, except per share data 2005 Cash Flows from Operating Activities: Net Income Taxation Finance Costs Finance Income Share of Results of Associates Other Operating Profit Adjustments Required to Reconcile Net Earnings to Net Cash Provided by (Used in) Operating Activities: Depreciation Non Cash Compensation Goodwill Investment Write Downs Gains on Investment Disposals Amortisation and impairment of acquired intangible assets Amortisation of other intangible assets Gains/losses on Sales of PPE Cash Taxes Paid Interest and similar charges paid Interest received Investment Income Dividend received from associates Changes in Operating Assets and Liabilities, Providing/(Requiring)  Cash, Net of Effects from Acquisitions    (Increase) Decrease in receivables    (Inc) Decrease in other assets    (Increase) Decrease in inventory    (Dec) Increase in Acrrued Liabilities    (Dec) Increase in Other non‐current assets and liabilities    (Dec) Increase in accounts payable    Other, net Change in Working Capital Net Cash (Used in) Provided by Operating Activities Cash Flows from Investing Activities: Acquisitions, Net of Cash Additions to Property and Equipment (CAPEX) Purchase of other Intangible Assets (incl. capitalized software) Proceeds on disposal of PPE Other, net Net Cash (Used in) Provided by Investing Activities Cash Flows from Financing Activities: Issue of Shares Share repurchase and buybacks Net Increase in borrowings Financing and Issue Costs Equity Dividends, paid Dividend paid to minority shareholders  Other, net Net Cash (Used in) Provided by Financing Activities Effect of Exchange Rate Changes on Cash/Cash Equivalents Net (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period
Source:  Company data and Wedbush Estimates 

bi 2006 482.6 199.4 211.7 (111.0) (41.1) 0.0 741.6 2007 515.1 204.3 266.1 (139.4) (41.4) 0.0 804.7

bn 2008 514.4 232.9 344.8 (169.6) (46.5) 0.0 876.0
1H09 2H09E

bo 2009E 498.4

bp 2010E 594.7

bq 2011E 647.5

398.0 194.0 182.3 (87.6) (33.9) 0.0 652.8

138.3 41.0 171.9 (132.7) (19.8) 0.0 198.7

360.1

299.7

498.4

594.7

647.5

121.9 68.6 47.1 0.0 (4.3)

142.6 70.9 44.3 0.0 (7.3)

144.4 62.4 45.8 0.0 (3.4)

251.4 62.3 85.6 30.5 (3.4)

1.1 (136.0) (128.2) 62.4 5.6 13.4

(3.7) (162.0) (135.1) 75.2 2.4 20.3

1.0 (151.0) (212.0) 102.6 3.1 28.0

1.9 (182.5) (269.2) 133.0 1.8 44.6

97.3 31.1 40.0 4.3 (8.4) 88.1 16.2 0.1 (94.9) (200.7) 96.2 0.4 22.1

129.7 35.0 0.0 0.0 0.0

227.0 66.1 0.0 0.0 0.0

227.0 65.4 0.0 0.0 0.0

236.6 65.4 0.0 0.0 0.0

0.0 (71.6) (143.7) 39.2 0.0 0.0

0.0 (166.5) (344.4) 78.4 0.0 0.0 $0.0

0.0 (203.9) (368.7) 78.4 0.0 0.0

0.0 (222.0) (349.0) 78.4 0.0 0.0

(1,973.7) (89.7) (113.4) 120.3 2,525.9 107.8 812.2 (171.1) 618.1 25.4 851.0 (109.3) 922.7 (481.9) (191.4) 469.4 757.6   ‐507.7 (160.5) (10.8) 6.7 0.0 (672.3) ‐215.6 (167.8) (16.7) 22.4 (377.7) (674.8) (151.1) (19.7) 8.3 0.0 (837.3) (1,049.1) (196.8) (23.8) 11.5 0.0 (1,258.2) ‐93 ‐113 (16.1) 2.1 0.0 (220.0) ‐7 ‐167 16.1 (2.1) 0.0 (160.0)   20.3 (152.3) (595.2) (2.2) (100.2) (24.0) 0.0 (853.6) 85 (628.7) 1,283.0 $654.3 70.9 (257.7) 382.1 (3.7) (118.9) (28.8) 0.0 43.9 ‐50.3 234.0 679.6 $913.6 34.8 (415.4) 498.9 (8.3) (138.9) (38.9) 0.0 (67.8) 119.2 65.1 956.9 $1,022.0 10.6 (105.3) 810.4 (19.4) (161.8) (63.5) 0.0 471.0 120.3 255.8 1,062.3 $1,318.1 0.1 ‐9.5 107.7 ‐27.8 0.0 ‐31.3 0.0 39.2 ‐228 (0.1) 9.5 (95.4) 27.8 (171.5) ‐8.7 0.0 (238.4) 228.0 0.0 0.0 12.3 0.0 (171.5) ‐40 0.0 (199.2) 0 ‐100 ‐280 0.0 0.0 0.0 (380.0) (12.5) 346.4

59.0 (94.7) 4.5 0.0 57.3 127.8 153.9 546.8

(300.9) (50.8) (13.0) 171.4 329.2 135.8 592.8

‐100 ‐263.8 0.0 0.0 0.0 (363.8)

‐100 (273.0) 0.0 0.0 0.0 (373.0)

0.0 0.0 0.0 0.0 (190.6) ‐40 0.0 (230.6) 0

0.0 0.0 (235.8) 0.0 (208.5) ‐40 0.0 (484.3) 0 (264.5) 1,037.7 $773.2

(600.2) 367.3 1,318.1 717.9 $717.9 $1,085.3

(232.8) (47.6) 1,318.1 1,085.3 $1,085.3 $1,037.7

James Dix (213) 688-4315

WPP plc | 7

Figure 8: WPP – Balance Sheet Forecast
In millions, except per share data 2005 Assets: Cash and Short‐Term Deposits                                   Trade and Other Receivables Inventory and work in process Corporate Income Tax Recoverable Other   Total Current Assets                                                  $1,115.2 $4,795.5 281.5 0.0 0.0 6,192.2 2006 1,663.7 4,931.9 341.5 26.5 0.0 6,963.6 415.3 6,549.9 411.4 136.5 108.9 110.3 0.0 $14,695.9 2007 $2,040.2 $6,140.8 343.9 37.2 0.0 8,562.1 449.6 7,226.3 540.1 268.6 56.0 149.3 0.0 $17,252.0 2008 $2,572.5 $8,138.1 $343.9 $53.1 $0.0 11,107.6 690.7 11,389.0 714.3 310.9 65.6 185.2 0.0 $24,463.3 BO 2009E $1,085.3 $8,636.3 459.9 $51.0 $0.0 10,232.5 743.7 11,489.0 730.9 312.9 105.0 195.6 0.0 $23,809.6     $6,828.4 56.5 457.8 0.0 7,342.7 1,461.4 703.0 0.0 533.1 231.4 131.7 0.0 10,403.3   Shareholders' Equity: Called‐up share capital Share premium account Shares to be issued Merger reserve Other reserves Own shares Retained Earnings                                                        Minority Interest Total Shareholders' Equity                                         125.3 2.1 37.2 (1,388.1) 167.3 (292.9) 5,253.6 81.3 3,985.8 124.1 74.9 7.5 (1,370.0) (170.1) (288.5) 5,449.0 91.5 3,918.4 $14,695.9 119.2 103.9 5.3 (1,365.9) (114.9) (255.3) 5,482.1 120.4 4,094.8 $17,252.0 125.5 8.6 8.7 (5,138.8) 1,250.5 (189.8) 9,697.5 197.6 5,959.8 $24,463.3 125.5 8.8 6.8 (3,185.3) 0.0 (170.2) 9,617.9 (311.7) 6,091.8 $23,809.6 125.5 8.8 6.8 (3,185.3) 0.0 (170.2) 9,553.2 (311.7) 6,027.1 $23,930.0 125.5 8.8 6.8 (3,185.3) 0.0 (170.2) 9,525.1 (311.7) 5,999.0 $24,166.7 6,783.8 39.6 1,260.6 0.0 8,084.0 1,217.7 331.9 383.7 467.8 187.6 104.8 0.0 10,777.5 $8,248.9 70.0 1,585.9 0.0 9,904.8 1,740.0 460.4 336.2 464.0 135.0 116.8 0.0 13,157.2 $10,407.7 $87.8 $1,254.4 0.0 11,749.9 4,385.7 553.9 489.0 917.1 272.0 135.9 0.0 18,503.5 $10,886.0 $86.2 $0.0 0.0 10,972.2 4,398.0 592.5 534.7 801.4 260.4 158.6 0.0 17,717.8 $10,971.1 $96.7 $0.0 0.0 11,067.7 4,398.0 635.3 531.4 849.9 258.5 162.2 0.0 17,902.9 BP 2010E $1,037.7 $8,577.4 455.4 $55.6 $0.0 10,126.1 780.5 11,589.0 782.6 354.8 87.7 209.4 0.0 $23,930.0     $11,284.6 $99.1 $0.0 0.0 11,383.7 4,162.2 650.9 568.6 945.3 290.5 166.5 0.0 18,167.7 BQ 2011E $773.2 $8,878.3 468.5 $58.5 $0.0 10,178.5 816.9 11,689.0 815.2 357.9 93.5 215.7 0.0 $24,166.7

Property and Equipment, Net                                    423.5 Goodwill and Other Intangible Assets 6,935.8 Interests in Associates 509.9 Other Investments 55.3 Deferred Tax Assets 130.3 Trade and Other Receivables 142.1 Other 0.0   Total Assets                                                                $14,389.1 Liabilities: Current Liabilities Trade and Other Payables                                          Corporate Income Tax Payable Bank Overdrafts and Loans Other   Total Current Liabilities                                             Non‐Current Liabilities Bonds and bank loans Trade and other payables Corporate income tax payable Deferred tax liabilities Provisions for post‐employment benefits Provisions for liabilities and charges Other   Total Liabilities                                                         

Total Liabilities and Shareholders' Equity               $14,389.1 Ratio Analysis: Book Value per Share Return on Average Equity (ROE) Interest Coverage (EBIT/Interest Expense) Current Ratio Quick ratio Debt/Equity Debt/Total Capital Long Term Debt/Total Capital Asset Turnover (# of times per year) Inventory Turnover Days Inventory Days Receivables Days Payables Cash Cycle Payables, % of Inventory Working Capital
Source:  Company data and Wedbush Securities estimates

2005

2006 2007 2008 2009E 2010E 2011E $          3.15 $         3.34 $         5.10 $         4.91 $           4.81 $         4.73 11.0% 11.6% 8.7% 7.0% 8.6% 9.2%              7.8              6.7             5.3              9.8              11.8            12.8 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 63.2% 81.2% 94.6% 72.2% 73.0% 69.4% 38.7% 44.8% 48.6% 41.9% 42.2% 41.0% 23.7% 29.8% 42.4% 41.9% 42.2% 41.0% 0.4 0.4 0.4 0.4 0.4 0.4 15.3 14.4 17.1 137.0 56.2 56.2 23.9 25.4 21.3 23.5 23.4 23.4 300.5 326.7 348.5 363.0 356.0 356.0 522.8 557.3 578.0 557.3 564.2 564.2 ‐198.4 ‐205.3 ‐208.1 ‐170.8 ‐184.7 ‐184.7 1986.5% 2398.6% 3026.4% 21365.5% 19718.5% 19275.8%        (1,120)        (1,343)           (642)           (740)              (942)         (1,205)

8 | WPP plc

James Dix (213) 688-4315

WEDBUSH SECURITIES Wedbush does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. ANALYST CERTIFICATION I, James Dix, CFA, certify that the views expressed in this report accurately reflect my personal opinion and that I have not and will not, directly or indirectly, receive compensation or other payments in connection with my specific recommendations or views contained in this report. IMPORTANT DISCLOSURES

I N V E S T M E N T R AT I N G S OUTPERFORM – Expect the total return of the stock to outperform relative to the median total return of the analyst’s (or the analyst’s team) coverage universe over the next 6-12 months. NEUTRAL – Expect the total return of the stock to perform in-line with the median total return of the analyst’s (or the analyst’s team) coverage universe over the next 6-12 months. UNDERPERFORM – Expect the total return of the stock to underperform relative to the median total return of the analyst’s (or the analyst’s team) coverage universe over the next 6-12 months. The Investment Ratings are based on the expected performance of a stock (based on anticipated total return to price target) relative to the other stocks in the analyst’s coverage universe (or the analyst’s team coverage).* DISTRIBUTION OF RATINGS (as of September 30, 2009) OUTPERFORM – 42% (5% of this rating category were investment banking clients within the last 12 months). NEUTRAL – 42% (1% of this rating category were investment banking clients within the last 12 months). UNDERPERFORM – 16% (4% of this rating category were investment banking clients within the last 12 months). The Distribution of Ratings is required by FINRA rules; however, WS’ stock ratings of Outperform, Neutral, and Underperform most closely conform to Buy, Hold, and Sell, respectively. Please note, however, the definitions are not the same as WS’ stock ratings are on a relative basis. The analysts responsible for preparing research reports do not receive compensation based on specific investment banking activity. The analysts receive compensation that is based upon various factors including WS’ total revenues, a portion of which are generated by WS’ investment banking activities. WS makes a market in the securities mentioned herein. * WS changed its rating system from (Strong Buy/Buy/Hold/Sell) to (Outperform/ Neutral/Underperform) on July 14, 2009. Please access the attached hyperlink for WS’ Coverage Universe: http://www.wedbush.com/inside/CapitalMarkets/CoverageList.asp Additional information is available upon request by contacting Ellen Kang in the Research Department at (213) 688-4529, or by email to ellen.kang@wedbush.com, or the Business Conduct Department at (213) 688-8090.

OTHER DISCLOSURES
RESEARCH DEPT. * (213) 688-4505 * www.wedbush.com INSTITUTIONAL TRADING Los Angeles (213) 688-4470 / (800) 421-0178 * INSTITUTIONAL SALES Los Angeles (800) 444-8076 CORPORATE HEADQUARTERS (213) 688-8000

James Dix (213) 688-4315

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The information herein is based on sources that we consider reliable, but its accuracy is not guaranteed. The information contained herein is not a representation by this corporation, nor is any recommendation made herein based on any privileged information. This information is not intended to be nor should it be relied upon as a complete record or analysis; neither is it an offer nor a solicitation of an offer to sell or buy any security mentioned herein. This firm, Wedbush Securities, its officers, employees, and members of their families, or any one or more of them, and its discretionary and advisory accounts, may have a position in any security discussed herein or in related securities and may make, from time to time, purchases or sales thereof in the open market or otherwise. The information and expressions of opinion contained herein are subject to change without further notice. The herein mentioned securities may be sold to or bought from customers on a principal basis by this firm. Additional information with respect to the information contained herein may be obtained upon request.

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James Dix (213) 688-4315

EQUITY RESEARCH DEPARTMENT
(213) 688-4529 DIRECTOR OF RESEARCH Mark D. Benson (213) 688-4435
CONSUMER PRODUCTS AND SERVICES Consumer Products Rommel T. Dionisio ………………..……… (213) 688-4418 Kurt M. Frederick, CPA …………………… (213) 688-4459 Education Ariel Sokol …………………..…………...... (212) 668-9874 David Kwon………………………………… (212) 938-9928 Entertainment Retail Michael Pachter …………………..……..... (213) 688-4474 Chris White…………..….…………………. (213) 688-4423 Edward Woo, CFA …………………….….. (213) 688-4382 Gaming, Lodging & Leisure Rachael Rothman, CFA..….…………….… (212) 938-9940 Amanda Bryant, CFA…………………….… (212) 938-9942 Yinan Zhao………………………………..… (212) 938-9941 Restaurants Rachael Rothman, CFA…...…………….… (212) 938-9940 Michael Sang, CPA…..……………………. (212) 938-9943 Specialty Retail: Hardlines Joan L. Storms, CFA ……………………… (213) 688-4537 John Garrett…………………………...…… (213) 688-4523 Camilo Lyon …………...…………………… (212) 938-9924 Specialty Retail: Softlines Betty Chen …………………..…………...... (415) 273-7328 Connie Wong…….…………..…………..... (415) 273-7315 Specialty Retail: Sporting Goods Camilo Lyon …..………………….…..….… (212) 938-9924 ENTERTAINMENT AND MEDIA Advertising & Broadcasting James Dix, CFA………………….…..….… (213) 688-4315 Entertainment: Software Michael Pachter …………………...…….… (213) 688-4474 Edward Woo, CFA ………….…………….. (213) 688-4382 Chris White…………..….…………………. (213) 688-4423 Entertainment: Toys Chris White…………..………….…………. (213) 688-4423 Edward Woo, CFA …………………….….. (213) 688-4382 Movies & Entertainment Chris White…………..…...………..…….... (213) 688-4423 Michael Pachter….….………….…………. (213) 688-4474 Internet Advertising/Media Edward Woo, CFA…….…………….…..… (213) 688-4382 INDUSTRIAL GROWTH AND CLEAN TECHNOLOGY Industrial Growth Al Kaschalk....……..….……………………. (213) 688-4539 Kevin Lee…....……..….……………………. (213) 688-4303 Clean Technology Craig Irwin....……..….…………………..…. (212) 938-9926 Solar Technology Christine Hersey....……..…...………………(213) 688-4311
EQUITY SALES Los Angeles San Francisco New York Boston (213) 688-4470 / (800) 444-8076 (415) 274-6800 (212) 668-9868 (617) 832-3700

TECHNOLOGY Communications Equipment Rohit Chopra …………………...…………. (212) 668-9871 Sanjit Singh …………………...…………... (212) 938-9922 Communications Technology Matthew Robison………..……...…………. (415) 263-6659 Leo Choi ………………………………….… (415) 263-6669 Datacenter Technologies Kaushik Roy…...………………...…………. (415) 274-6873 Hemant Hebbar..………………...…………. (415) 274-6874 Software: Enterprise / Application Michael B. Nemeroff.……………..………. (212) 668-9876 David Giesecke…...…..…………………... (212) 938-9925 Software: Infrastructure J. Derrick Wood, CFA…………..…………. (415) 274-6822 David Kaczorowski….……………………….(415) 274-6883 Internet: Infrastructure Kerry Rice, CPA …………………………… (213) 688-4538 Semiconductors Patrick Wang…………………………...…. (212) 938-9938 Michael Lucarelli..………………...…….…. (212) 938-9927 Betsy Van Hees………………………….... (415) 274-6869 David Epstein …………………...….……... (213) 688-6624 Telecommunications Software Scott P. Sutherland, CFA ……………..…. (213) 688-4522 Suhail Chandy …………………...……..…. (213) 688-4380 Transaction Processors Gil B. Luria....….…..………....……………. (213) 688-4501 Nick Setyan……....……..…………………. (213) 688-4519 Wireless Equipment Scott P. Sutherland, CFA ………….…….. (213) 688-4522 Suhail Chandy ……………...……….…….. (213) 688-4380 LIFE SCIENCES Biotechnology / Biopharmaceuticals Gregory R. Wade, Ph.D.………...……….. (415) 274-6863 Jeremiah Shepard, Ph.D.………...……….. (415) 274-6862 Kimberly Lee, D.O….……………..………. (415) 274-6842 Y. Katherine Xu, Ph.D…………………….. (212) 938-9955 Cardiovascular, Devices & Regenerative Duane Nash, MD JD MBA…...…..………. (415) 263-6650 Akiva Felt ……………………...…..………. (415) 263-6648 Emerging Pharmaceuticals Liana Moussatos, Ph.D.….........…………. (415) 263-6626 Richard Lau ..…………….………..………. (415) 274-6851 Specialty Pharmaceuticals Patricia Bank…………………..……………..(415) 263-6646 Medical Technology Phillip Nalbone.……..….…………………….(415) 274-6884

EQUITY TRADING Los Angeles San Francisco New York Boston (213) 688-4470 / (800) 421-0178 (415) 274-6811 (212) 344-2382 / (800) 421-0178 (617) 832-3700 / (800) 421-0178

CORPORATE HEADQUARTERS 1000 Wilshire Blvd., Los Angeles, CA 90017-2465 Tel: (213) 688-8000 www.wedbush.com


				
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