Company Report

& Profile

WRSX
GLOBAL ADVERTISING & MARKETING
COMMUNICATIONS
 WRSX
GLOBAL ADVERTISING &
MARKETING COMMUNICATIONS

CONTENTS:
Company History
Mission Statement
Company Timeline
Board of Directors
Corporate Governance
Group Structure
Operating Units
Financial Performance Measures
Share Price / Market Capitalisation
Financials
Non-financial Performance Measures

d.
e
v
r
e
s
e
r

ghti

A
.

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
 L

py
o
C
 Company History / 1
WRSX
Global Advertising

Introduction:
WRSX (Waldron Roux Silberstein Xao) was founded over 20 years ago with the
merger of three agencies: a long-established London-based advertising
agency, WWMV and new partner agencies in New York (Silberstein & Lord)
and Paris (Roux Toussaint Berthe).

The London agency:

Westcott Waldron Morrissey Vickers (WWMV) was one of the new-wave
creative London agencies but as three of the original founding partners
Westcott, Morrissey and Vickers cashed-out, the last remaining founding
partner, Juliette Waldron, saw the opportunity to take advantage of global
opportunities and grow the agency network by merging with the New York
agency Silberstein & Lord and the Paris agency Roux, Toussaint, Berthe.

The New York agency:

Silberstein & Lord is on Madison Avenue and Lloyd Silberstein is both president
and creative director. He was described in Ad Age as “one of those old-style
advertising personalities who would go onto the ledge of his 50th floor office to
fight for a creative idea”. The agency established its reputation as a highly
creative boutique and attracted some of the top Fortune 500 companies as
clients. Its reputation was set in stone when it won a major slice of the leading
automotive brand advertising account. Robert Lord, the second founding
partner and previously director of client services, left the agency due to failing
health, leaving Lloyd Silberstein in charge. A large personality, Lloyd Silberstein
has the reputation of not being able to keep his top staff.

d.
e
 v
r
e
s
e
r

A
.

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Company History
WRSX
Global Advertising

The Paris agency:

Roux, Toussaint, Berthe (or RTB as they were known) is based in Paris.
Raphael Roux, who had a highly successful career with a major cosmetics
firm as international marketing director teamed up with two of the agency
team who serviced the company’s business: Serge Toussaint and Philippe
Berthe. RTB soon had an enviable reputation and produced highly creative
award-winning advertising campaigns.

The merged new agency – WRSX / Waldron Roux Silberstein Xao:

These three companies merged and decided upon the name of WRSX /
Waldron Roux Silberstein Xao, which a majority of the founding partners
believed reflected the size and reputation of the merging companies. The
founding partners and shareholders consisted of: Juliette Waldron of
WWMV, Lloyd Silberstein of Silberstein & Lord, Raphael Roux of Roux,
Toussaint, Berthe and Victor Xao, a senior director in the London agency.

Their stated strategy at the time of the merger was:

Creative quality and a range of advertising and marketing

communications services to support clients globally.

e
v
r
e
s
e
r

ght i

r
py
o
C
 Company History
WRSX
Global Advertising

WRSX LSE Listing

WRSX went public through an Initial Public Offering on the London Stock
Exchange (LSE) where its shares are traded. The company is a diversified
advertising agency offering advertising, media, direct marketing, PR and
speciality communications services across a range of disciplines.

While WRSX is quoted on the LSE “big board”, through significant account
gains in France, the centre of gravity of the company is largely in Paris, where
Board meetings are held.

Concurrent with these account gains in Paris, Raphael Roux was appointed
CEO five years ago and is now retiring as global CEO and you, as one of a
new Board of Directors, have recently been appointed to take over the
strategic and business management of the WRSX Group.

The WRSX share price has been underperforming in the advertising sector
for the past 18 months and analysts have written of “strategic drift” and “lack
of strategic focus in low-margin subsidiaries”. Because of your strong
strategic track record in a related industry, you have been brought in to help
redirect the fortunes of the company.

d.
e
v
r
e
s
e
r

s
ght
i

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Mission Statement
WRSX
Global Advertising

Mission Statement
We exist to make our clients successful through differentiating and
strengthening their brands.

How we add value:

WRSX is a creative, innovative, customer-driven communication company built
around highly specialised business units. Due to the way the Group has
developed historically, mainly through merger and acquisition, the structure of
the business contributes to the independence of the various business units with
a great deal of autonomy that we believe contributes to the effectiveness of the
service we offer our customers. Local service and local account management
are what drive our customer excellence.

Sector Specialism
WRSX has developed its reputation as a leading advertising agency through its
expertise in the following sectors:

• Automotive & transport

• Health & pharmaceuticals

• Telecoms

• Beauty & fragrances

• Government & public sector

d.
e
v
r
e
s
e
r

ghti

r
 A
.

21

c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Company Timeline
WRSX
Global Advertising

Timeline highlights

17 years ago – WRSX - The new integrated agency is born

Present day WRSX chairman, Juliette Waldron gets together with Raphael
Roux, Lloyd Silberstein and Victor Frederick Xao to re-invigorate the
business and restructure the equity with personal investments.
10 years ago – Advertising Age Agency of the Year Award
Judges vote WRSX Ad Age International Agency of the year.
9 years ago – WRSX makes public offering
Shares traded for the first time on the London Stock Exchange.
8 years ago – Big account wins in France
Paris office expanded. Range of services widened.
7 years ago – New York account losses
Lloyd Silberstein had to announce the loss of a big account. New York office
re- structure necessary.
6 years ago – Raphael Roux appointed as global CEO
Juliette Waldron appoints Raphael Roux as CEO and herself as Chairman.
5 years ago – Singapore office opened
With Victor Xao’s experience and encouragement from an FMCG
client wanting to launch in Thailand, Malaysia, Philippines, Hong
Kong and Singapore, an office in Singapore is opened.
4 years
ago –
Diversifi
cation
The board decides to widen the range of disciplines and
makes acquisitions in research.
3 years ago –
Revenue tops £200
million
The Group’s revenue topped the £200
million mark this year.
2 years ago – The Group makes
further acquisitions
The Group diversifies into brand
identity and digital media.
Current year – Raphael Roux is temporarily
suspended from duties
Followingallegations intheParis officeofbriberytogainbusiness,
Raphael Rouxis
d
.

temporarilysuspendedpendingenquiries intoallegations
ofcorruptionbyaformer
e
v
r

emp
loye
eof
WR
SXP
aris.
e
s
e
r

ght
i

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Board Directors:
WRSX Executive
Global Advertising

The Main Board of Executive Directors:

Executive Chairman Juliette Waldron

Global CEO Raphael Roux

Paris office MD Serge Toussaint

London & Singapore office MD Victor Frederick Xao

New York office President Lloyd Silberstein

Chief Financial Officer Leena Chakrabati

Group HR / Talent Director Francoise Mellier

Group Market Insights Director Bjorn Krog-Jensen

Juliette Raphael Leena

Waldron Roux Chakrabati
Picture …because you are also a main
yourself board director
here…
Francoise Bjorn

Mellier Krog
Jensen

r
 8

py
o
C
 Board Directors:
WRSX Non-Executive
Global Advertising

Non-Executive Directors:
There are also three non-executive directors who advise the board. These
three non- executive directors are up for re-election within the next year.

Sandrine Mauret Director, GDF Industries, Brussels

Mervyn Hill-Lewis Director, RLT Financial Services, London

Rod Raoul Saurez Director, Telecoms Worldwide Inc, New York

Sandrine Mervyn Rod

Raoul
Mauret Hill-Lewis Saurez

d.
e
v
r
e
s
e
r

ght i

r
 A

py
o
C
 Biographies:
WRSX Non-Executive
Global Advertising Directors

Non-Executive Directors:

Below are summary biographies of the three current Non-Executive Directors of

WRSX:

Sandrine Mauret Director, GDF Industries, Brussels.

Sandrine Mauret is seen as a rising s
GDF where she
is Director of Operations (Brussels). GDF is a major utility supplier of
gas and electricity to the commercial and residential sector. Mauret
obtained her MBA at IMD in
Switzerland where she met Raphael Roux. Roux
invited
Sandrine Mauret to join the WRSX
Board as a Non-Exec three years ago.
Mauret is also a Non-Exec of three
other companies, a trustee of the
Opera House in Paris, a
UNICEF Special Envoy for Humanitarian needs in Africa and a prospective
member of the European Parliament. So far
Sandrine Mauret has attended one Board
Meeting and a meeting called by Roux where he
announced his suspension from duties pending
investigations.

Mervyn Hill-Lewis Director, RLT Financial Services, Lon

RLT were major clients of WRSX duri
Mervyn Hill-
Lewis’ time as Marketing Director of RLT. RLT are the UK’s seventh
largest financial services company. Mervyn retired from RLT when it was
acquired by Spanish financial
Services Group, Santos four years ago. He has
been a
Non-Executive Director of WRSX for six years.
He has attended every Board meeting convened
during his tenure to date.

Rod Raoul Saurez Director, Telecoms Worldwide Inc, Ne

Telecoms Worldwide Inc is a major pl
the telecoms
industry in the USA. He has an astu
and is seen as giving “wise counse
 Board – although the Board has c
ignore some of his more radical ide
e
s
e
r

ghti

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

©
10

py
o
C
 Corporate
WRSX Governance
Global Advertising

Corporate Governance

There have been reporting irregularities in the past. The problem was the way
certain offices reported revenues and associated costs. There have been
allegations of bribes to win business which have come from the Paris office and
while an internal investigation was conducted no charges were made.

This occurred despite the appointment of three non-executive directors, all of

whom are up for re-election this year. There is a move among shareholders to
ask for the appointment of new non-executive directors who are strong in
corporate governance.

The Group does not currently have a stated code of corporate governance as
this issue is managed at a local level.

d.
e
v
r
e
s
e
r

ght i

r
 A
.

21

c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Group Structure
WRSX
Global Advertising

WRSX
Group
Main
Board
Company Secretary
Chairman’s PA

Paris Office New York Office London Office Singapore Office

Office Central Services Office Central Services Office Central Services

Office Central Services

Consumer Consu Consumer Advertising Consumer Advertis

Advertising mer
Advertis
ing

Media Services Media Retail Advertising Media Services

Service
s

PR Company Direct Media Services Branding & Ident

Marketi
ng

Film Production Photogr PR Company

aphic
Studio
Exhibitions &
Photographic Studio Mail Consumer Insight Conferences
Handlin
g
Service
s

Digital / New Media Digital Digital / New Media Outdoor Media

Media/
 Web Design
Relationship Resear Inform Branding & Digital / New Me
Marketing/ ch & ation
CRM
Identity
Research & Lobbying Audio Visual Sports Promotio
Insight Consultancy Productions
Consultancy
Branding &
Identity
s

ght i

Office Central Services = Planning & Finance, HR, Marketing, Procurement & IT

12

py
o
C
 Operating Units /
WRSX
Global Advertising

Paris Consumer Advertising Agency Photographic studio

Name: WRSX Paris Name: Atelier Photographique
MD: Serge Toussaint MD: Jean-Luc Breton
Specialisation: Consumer Specialisation: Packaging and food
advertising photography

Media Services
Name: WRSX MediaCom Web design company
MD: Dominic de la Noe Name: InterDessin
Specialisation: Media planning MD: Pierre Rousset
and buying
Specialisation: Interactive websites
PR
Name: Publicitas Relationship marketing / CRM
MD: Sylvie Tourre Name: WRSX 121
Specialisation: Consumer PR MD: Daniel Auchan
Specialisation: Direct marketing
Film production
Name: Cine FX Research and Insight consultancy
MD: Jean-Luc Breton Name: PerspectivesConsommateur
Specialisation: Animation and MD: Ghiselle Briant
digital effects Specialisation: Behaviourial
research

d.

s
 i

py
o
C
 Operating Units /
WRSX
Global Advertising

New Consumer Advertising Agency Digital Media / web design

York
Name: WRSX New York Name: Quazar
MD: Lloyd Silberstein MD: Rick la Motta
Specialisation: Consumer Specialisation: Corporate websites
advertising

Media Services Photographic studio

Name: WRSX MediaCom Name: Drive-In Studios
MD: Ronald Rosenshine MD: Rick la Motta
Specialisation: Media planning Specialisation: Automotive
and buying photography

Direct Marketing Agency Research and Information

Name: WRSX Direct Name: A. W. Sorensen
MD: John Soares MD: Liz-Anne Botma
Specialisation: Classic DM Specialisation: Direct marketing

Mail Handling Services Lobbying consultancy

Name: FastTrak Mailings Name: Smith Inc
MD: John Soares MD: Bradley W. Smith
Specialisation: Mailings Specialisation: Political lobbying &
PR

Branding & Identity

Name: Identica2000 New York
MD: Lloyd Silberstein
Specialisation: Design &
corporate identity

d.

s
 i

A
.

s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Operating Units /
WRSX
Global Advertising

London Consumer Advertising Agency Consumer Insight

Name: WRSX London Name: Synergy Insight
MD: Victor Frederick Xao MD: Penny Alder
Specialisation: Consumer Specialisation: Consumer behaviour
advertising

Retail Advertising Digital Media

Name: WRSX Retail Name: Silverfish
MD: John Hooper MD: Jay Bravura
Specialisation: Specialist retail Specialisation: Digital media
advertising channels

Media Services Branding & Identity

Name: WRSX MediaCom Name: Bellamy Borthwick
Jones/Pentagraph
MD: Adrian de Bock MD: Matt de Wolff
Specialisation: Media planning Specialisation: Corporate identity
and buying

PR Company Audio Visual Productions

Name: BTP Name: Audio Image
MD: Rosie Burton-Taylor MD: Grahame Edmunds
Specialisation: Consumer PR Specialisation: Product launches

d.

s
 i

A
.

s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Operating Units /
WRSX
Global Advertising

Singapo Consumer Advertising Agency Outdoor media

re
Name: WRSX AsiaPacific Name: Impact Media
MD: Victor Frederick Xao MD: J. N. Wang
Specialisation: Consumer Specialisation: Poster sites
advertising

Branding & Identity Digital media

Name: ImageMedia Name: The Tube
MD: Stephen Lim MD: Victor Frederick Xao
Specialisation: Corporate identiity Specialisation: Digital media
channels

Exhibitions & Conferences

Name: PromoCo Sports Promotions
MD: Deena Patel Name: Sports World
Specialisation: Exhibitions & MD: Royce Moon
Conferences
Specialisation: Brand sports
promotions
Media Services
Name: MediaCom AsiaPacific
MD: John Read
Specialisation: Media planning
and buying

d.

s
 i

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Financial Performan
WRSX
Global Advertising Measures

How we judge our performance

Our objective is to create value for our shareholders in both the short
and long-term through effective strategies that deliver year-on-year
growth in our existing markets and sectors as well as sound investment
in developing markets and emerging sectors.

WRSX key financial performance ratios (Start Position Period 0) are:

RATIOS: WRSX Industr

y
Group average

• PBIT Margin 16.5% 19%

calculated as PBIT/Revenue:

• Staff Costs Ratio: 63% 58%

calculated as Staff Costs/Revenue

• Return on Capital Employed: 12.9% 15%

calculated as PBIT/Total Assets – Current
Liabilities

• Gearing Ratio: 45.5% 42%

calculated as Non Current Liabilities/Total Equity

Note: An Income Statement and the PBIT and Staff Costs Ratio only will be
displayed at the end of each decision period in Phase 3 - Strategy in Action - of
the simulation.
17
r

py
o
C
 Share Price & Mar
WRSX Capitalisation
Global Advertising

Share price & Market Capitalisation:

Following the unproven allegations of bribery in the Paris office and the
resignation of the CEO the share price has been in a long term decline over a
number of quarters and is now trading in a narrow band around 230p and shows
the average share price per quarter over the past 9 quarters.

With 125,000,000 issued shares in circulation, this puts WRSX market

capitalisation at approximately £285m.

Earning per share (pence) last dividend was 15.23p

WRSX Share Price - £'s

4.00
3.71
3.50 3.51
3.25
3.00
2.77 2.78
2.50 2.5
2

2.3
2
2.00

1.50

1.00

0.50

0.00
Q1 Q2 Q3 Q4 Q5
Q6 Q7 Q8 Q9
 s
e
r

ght
i

py
o
C
 Financials/ 1
WRSX
Global Advertising

Please note:
Period 0 denotes the position for all WRSX finances at the start of the
simulation.

INCOME STATEMENT for Period 0 £m

Revenue 200.0 2

Direct costs (10.0) (

Gross profit 190.0 2

Operating costs:
Staff costs (126.0) (1

Establishment costs (16.0) (19

Other operating costs (15.0) (18
Total operating costs (157.0) (1

Profit before interest and taxation 33.0 3

Finance income 5.0

Finance costs (10.0) (12

Profit before taxation 28.0 3

Taxation (9.0) (10

Profit for the year 19.0 2

 d.
e
v
r
e
s
e
r

ghti

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Financials/ 2
WRSX
Global Advertising

SEGMENTAL ANALYSIS for Period 0

By region Revenue PBIT Reven
ue

£m £m €m

North America 100.0 19.0 120.0

Western Europe 50.0 8.0 60.0

Central & Eastern Europe 30.0 3.9 36.0

Asia Pacific 20.0 2.1 24.0

200.0 33.0 240.0

By division Revenue PBIT Reven

ue

£m £m €m

Advertising & media 76.0 10.8 91.2

Information, insight & consulting 48.0 7.7 57.6

Public relations 28.0 6.1 33.

6

Branding & identity 22.0 4.0 26.4

Specialised communications 14.0 2.1 16.8

New media & digital 12.0 1.6 14.4

200.0 33.0 240.0

d.
e
v
r
e
s
e
r

ghti

A
.

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Financials/ 3
WRSX
Global Advertising

BALANCE SHEET as at end of Period 0 £ €

m m
Non-current assets
Intangible assets
Goodwill 215.0 258.0
Other intangible assets 50.0 60.0
Property, plant and equipment 15.0 18.0
Other investments 10.0 12.0
Other non-current assets 5.0 6.0
295.0 354.0
Current assets
Inventories and work in progress 10.0 12.0
Trade and other receivables 175.0 210.0
Cash and short-term deposits 70.0 84.0
255.0 306.0
Current liabilities
Trade and other payables (275.0) (330
0
Corporation tax payable (2.0) (2.4
Bank overdrafts (17.0) (20.4
(294.0) (352
8
Net current assets/(liabilities) (39.0) (46.8

Total assets less current liabilities 256.0 307.2

Non-current liabilities
Bank loans (75.0) (90.0)
Provisions for liabilities and charges (5.0) (6.0)
(80.0) (96.0)
NET ASSETS 176.0 211.2

Equity
Called up share capital 8.0 9.6
Share premium 5.0 6.0
Retained earnings 163.0 195.6

e
s
e

TOTAL EQUITY 176.0 211.2

ght i

r
 2

py
o
C
 Financials/ 4
WRSX
Global Advertising

CASH FLOW STATEMENT for Period 0 £m €m

Profit before interest and taxation 33.0 39

6
Adjustments for non-cash items:
Depreciation 4.0 4.8
Impairment of intangible assets 2.0 2.4
Profit/loss on disposals 1.5 1.8

Operating cash flow before movements in working capital 40.5 48

6
Movements in working capital 12.0 14
4
Cash generated by operations 52.5 63
0
Taxation paid (5.0) (6
0
Interest paid (7.0) (8
4
Interest received 3.0 3.6

Net cash flow from operating activities 43.5 52

2
Investing activities:
Acquisitions and disposals of subsidiaries (12.0) (14
4
Purchases of property, plant and equipment (5.0) (6.0
Purchases of other intangible assets (1.0) (1.2
Proceeds on disposal of property, plant and equipment 0.5 0.6
Net cash flow from investing activities (17.5) (21
0
Financing activities:
Net movement in long-term borrowings 20.0

Proceeds from share issues 2.0

Equity dividends paid (5.0

Net cash flow from financing activities 17.0

Net movement in cash and cash equivalents 43.0

Cash and cash equivalents at start of period 10.0

Cash and cash equivalents at end of period 53.0

0.0

r
e
s
e
r

ght
i

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Non-Financial
WRSX Performance
Global Advertising
Measures / 1

WRSX key Non-Financial Performance Measures are divided

into six major categories, each with sub-categories, which
are those used in the ADCOM Industry Benchmark Survey:

1 Management of Growth:
.
Entrepreneurial capability & management of organic growth
Competence in acquisition management
International/global market positioning
Branding, trade names and intellectual property rights

2 Management of Risk:
.
Management of Financial Risk: Forex, liquidity, creditworthiness
Management of Legal & Reputational Risk
Management of Operational & Business Risk

3 Leadership Capability
.
Strategic leadership
Excellence in operations, information management, admin etc
Ability to lead and manage change
Retention of key personnel
Attraction of next generation / new talent

4 Corporate Social Responsibility (CSR)

.
Corporate Governance
Ethics
Social profile
Sustainability profile/Carbon footprint
 e
r

ght
i

A
.

21

c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Non-Financial
WRSX Performance
Global Advertising Measures/2

5 Client Attraction and Retention

.
Market research/understanding market segments & channels

Breadth of services & disciplines

Creativity & Innovation
Account management structure
Value-added to client businesses

6 Procurement and Supplier Management

.
Media buying effectiveness
Exploitation of synergies that deliver economies of scale
Effective production buying & management of suppliers / spend control

NOTE:
Please see the next page for the results of the latest ADCOM Industry
Benchmark SurveytoseehowWRSXhas performedinthelast year compared
totheindustryaverage.
 d.
e
v
r
e
s
e
r

ghti

24

py
o
C
 Non-Financial
WRSX Performance
Global Advertising Measures/3

ADCOM Industry Benchmark Survey Results

& Impact on Share Price

Twice a year this survey is carried out that benchmarks companies in the
Advertising and Marketing Communications Industry. The survey is
conducted through research with all key stakeholders in the industry: Clients,
suppliers, employees, the financial community, shareholders, relevant
government and quasi-government departments, activist groups,
competitors and trade associations.

The survey uses a selection of Non-Financial Performance Indicators to

measure the perceived performance of each company in the survey against
its peers. This survey is important because it has a direct impact on the
projected P/E Ratio of each business and through this the Share Price of
each company in this industry.

In general, a high P/E suggests that investors are expecting higher earnings
growth in the future compared to companies with a lower P/E in the same
industry. A higher P/E also reflects the quality and reliability of those
earnings and their perceived risk. Therefore two companies with identical
forecast future earnings may well trade at different P/Es if the market
perceives significant differences in their business strategies, their long-term
growth prospects or the capability of their management teams.

Each of the scores for the Non-Financial Performance Indicators (NFPI’s) is

driven by how WRSX performs in the Industry Benchmark Survey.

d.
e
v
r
e
s
e
r

ghti

r
21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Non-Financial
WRSX Performance
Global Advertising Measures/4

Industry Average Score each NFPI 5

0

WRSX Scores:

1 Management of Growth 43.

5

2. Management of Risk 41.

3

3. Leadership Capability 39.

2

4. Corporate Social Responsibility (CSR) 38.

5

5. Client Attraction & Retention 52.

0

6. Procurement and Supplier Management 38.

7

Average of All Six NFPI’s for WRSX 42.2

What the Survey Results Mean:
ManagementofGrowth:WRSXisperceivedas just belowaverage in
terms ofits Entrepreneurial Capability&Management ofOrganic Growth
d
.

but wellbelowaveragein terms ofthewayit has managedAcquisitions to

e
v
r

date. Accordingtothesurvey, it is not seenas aGlobal player measured

e
s
e

againstcompetitors. TheWRSXBrandis quitewellknownbut it is not a r

Top20Brandin theindustry. Equally, it’s ownershipofTradeNames andght i

Intellectual Property Rights is below the industry average.

21
20
s
c
i

Continued on next page>

y
D
g
n
i

ar
e
L

py
o
C
 Non-Financial
WRSX Performance
Global Advertising Measures/5

Management of Risk: Traditionally WRSX has performed well in

benchmark surveys in terms its management of Financial Risk but it has
dropped below average as a result of a sustained investment in
acquisitions in recent years. Some acquisitions have not been perceived
as financially astute. The recent corruption scandal involving Raphael
Roux has damaged WRSX Group’s Reputational Risk score. Equally, the
way the business is structured and managed, i.e. local autonomy and a
“light-handed approach” by the WRSX Group Board, results in a low
score in terms of Management of Operational, Market and Business Risk
against the industry average.

Leadership Capability: Some offices perform well but others perform

badly in terms of Management of Operations, Information Management
and Administration - so that across the Group scores average out at
below the Industry average. WRSX performs well below the industry
average in terms of its Strategic Leadership Capability, its Ability to Lead
and Manage
Change and its ability to attract and retain high quality personnel in key
positions in its businesses.

Corporate Social Responsibility (CSR)

Previous surveys have shown high scores for WRSX in terms of its
ethical stance and its social profile (its social contribution to the
communities in which it trades) but lower for corporate governance (the
set of processes, customs and policies affecting the way the Group is
administered or controlled). All three scores have dropped dramatically
following the corruption scandal involving Raphael Roux and concerns
about the strength of the WRSX Board. WRSX also scores well below
industry average in terms of its sustainability profile/carbon footprint.

d.
e
v
r
e
s
e
r

ght i

A
 .

21

c
i

am
n
y
D
g
n
i

ar
e
L

py
o
C
 Non-Financial
WRSX Performance
Global Advertising Measures/6

Client Attraction & Retention

WRSX scores highly on its market research capability and its
understanding of market segments and channels. It also scores very
highly in terms of its creativity and innovation but this masks a poor
score for this factor in the USA. The breadth of services and disciplines
WRSX offers matches the industry average being neither a specialist
provider nor one of the Top Four that provides a full range of services
to clients. Its account management structure is perceived as providing a
below average service. Value added to clients’ businesses is seen
currently as very slightly below industry average. This is an
improvement on some previous surveys.

Procurement and Supplier Management

WRSX performs badly in terms of the way it manages
production buying and how well it builds and exploits
good relationships with suppliers. It performs
particularly badly in terms of the synergies it achieves
through exploiting economies of scale across the Group
and it also fails to use its
Group buying power in terms of
buying media for clients.

d.
e
v
r
e
s
e
r

s
ght
i

28

py
o
C
 WRSX
GLOBAL ADVERTISING &
MARKETING
COMMUNICATIONS

e
v
r
e
s
e
r

ght
i

A
.

21
20
s
c
i

am
n
y
D
g
n
i

ar
e
L

©
ght
i

py
o
C