Hakuhodo Dy Holdings Incorporated · TSE:2433

Hakuhodo Dy — Q3 FY2023 Earnings Presentation

32 slides from Hakuhodo Dy's earnings presentation, Feb 8, 2024

  1. Slide 1: Consolidated Financial Highlights FY2023 Third Quarter (April-Dec., 2023)

    Consolidated Financial Highlights FY2023 Third Quarter (April-Dec., 2023) February 8, 2024 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

  2. Slide 2: Highlights of Consolidated Results for Q3 FY 2023

    Highlights of Consolidated Results for Q3 FY 2023 (Notes about Retroactive Restatement) With regard to the business combination following the acquisition of shares in Sold Out Inc. in April 2022, we had been applying provisional accounting treatments during the previous third quarter consolidated ac

  3. Slide 3: Q3 FY2023 Income Statement Highlights

    Q3 FY2023 Income Statement Highlights  Billings decreased by 0.6% YoY, and revenue decreased by 1.0% YoY.  Operating income decreased by 56.7% to ¥15.6 billion. Ordinary income decreased by 57.3% to ¥16.9 billion.  Net income (loss) attributable to owners of parent decreased by ¥25.4 billion YoY

  4. Slide 4: Q3 FY2023 Results (Excluding Investment Business) 1

    Q3 FY2023 Results (Excluding Investment Business) 1  Billings decreased by 0.7% YoY. Gross profit increased by 0.3% YoY. Gross margin improved by 0.2pt.  SG&A expenses increased by 8.9% YoY. Operating income decreased by ¥20.6 billion YoY to ¥9.5 billion.  Operating income before goodwill decreas

  5. Slide 5: Q3 FY2023 Results (Excluding Investment Business) 2

    Q3 FY2023 Results (Excluding Investment Business) 2  While both billings and profits declined in the first half (April – September), performance turned around in the third quarter (October - December), with both sales and profits increasing. Changes from H1 to Q3 (YoY Comparison) H1 (April - Septem

  6. Slide 6: Q3 FY2023 Results (Excluding Investment Business) 3

    Q3 FY2023 Results (Excluding Investment Business) 3  Key Factors for the Profitability Turnaround in the Third Quarter (October - December) • Recovery of top-line in Japan  “Television” outperformed the market and “Internet Media” continued to grow steadily due to the utilization of AaaS and the p

  7. Slide 7: Q3 FY2023 Results (Excluding Investment Business) 4

    Q3 FY2023 Results (Excluding Investment Business) 4  Continued: Key Factors for the Profitability Turnaround in the Third Quarter (October - December) • Cost restructure in North America contributed to the recovery of profitability in overseas business, as well as continued stable growth in Asia •

  8. Slide 8: Guidance for FY2023

    Guidance for FY2023 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved.

  9. Slide 9: Guidance for FY2023

    Guidance for FY2023  There is no change in the full-year earnings forecast.  Additionally, we are currently considering various measures aimed at streamlining the balance sheet. Should these measures impact the performance of FY2023, we will disclose the details promptly. (Guidance for FY2023) （Mi

  10. Slide 10: Shareholder Returns

    Shareholder Returns Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved.

  11. Slide 11: Shareholder Returns

    Shareholder Returns  The annual dividend will be ¥32 per share (including an interim dividend of ¥16 per share), unchanged from the previous forecast. (Dividend forecast for FY2023) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 10

  12. Slide 12: Cautionary Statements Concerning Forward-looking Statements, Change in accounting standards & Note Concerning Audits

    Cautionary Statements Concerning Forward-looking Statements, Change in accounting standards & Note Concerning Audits （Cautionary Statements Concerning Forward-looking Statements） This presentation includes forward-looking statements concerning forecasts of operating results, business plans and polic

  13. Slide 13: Supplements

    Supplements Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved.

  14. Slide 14: Interim Income Statements

    Interim Income Statements Japanese GAAP-basis Interim Income Statements for Q3 FY2023 YTD（9-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 1,117,694 -6,698 -0.6% 354,422 +1.5% 343,432 -7.3% 419,839 +3.7% Revenue 646,309 -6,723 -1.0% 201,466 +3.0% 198,091 -11.5%

  15. Slide 15: Results Excluding Investment Business

    Results Excluding Investment Business Q3 FY2023 YTD（9-Month） by Quarter（3-Month） Results Excluding Investment Business （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 1,110,838 -7,294 -0.7% 348,568 +0.8% 343,007 -7.2% 419,261 +4.2% Revenue 639,453 -7,319 -1.1% 195,612 +1.7% 197,667 -11.3%

  16. Slide 16: Results by Region

    Results by Region Q3 FY2023, YTD （Millions of JPY） Actual YOY Japan Billings 954,510 -4,790 -0.5% Revenue 483,124 -4,815 -1.0% Gross Profit 209,918 +1,050 +0.5% SG&A 165,295 +14,480 +9.6% Operating Income 44,623 -13,430 -23.1% Overseas Billings 176,258 +4,478 +2.6% Revenue 176,258 +4,478 +2.6% Gross

  17. Slide 17: Results by Region (YTD, by Quarter)

    Results by Region(YTD, by Quarter) YTD（9-Month） by Quarter（3-Month） Q3 FY2023 Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 947,653 -5,386 -0.6% 297,790 -0.2% 287,738 -8.0% 362,124 +5.9% Gross Profit 203,505 +644 +0.3% 62,137 +1.4% 62,710 -8.7%

  18. Slide 18: Results by Region (Japan: Excluding Investment Business)

    Results by Region (Japan: Excluding Investment Business) Q3 FY2023, YTD (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter Billings 947,653 -5,386 -0.6% （Millions of JPY） Revenue 476,268 -5,447 -1.1% Gross Profit 203,505 +644 +0.3% Gross Margin 21

  19. Slide 19: Results by Region (Overseas)

    Results by Region (Overseas) Q3 FY2023, YTD (Millions of JPY) Actual YOY Billings 176,258 +4,478 +2.6% Gross profit & Operating Income before amortization of goodwill by quarter Revenue 176,258 +4,478 +2.6% （Millions of JPY） Gross Profit 77,289 +4,936 +6.8% Gross Margin 43.8% +1.7pt SGA 84,955 +6,75

  20. Slide 20: Billings by Service Category

    Billings by Service Category Composition Q3 FY2023, YTD (Millions of JPY) Actual YOY Ratio Newspapers 22,492 -1,110 -4.7% 2.4% Magazines 5,680 -419 -6.9% 0.6% Radio 7,406 -1,077 -12.7% 0.8% Television 281,923 +214 +0.1% 30.4% Trad-Media Service Subtotal 317,502 -2,392 -0.7% 34.2% Internet Media 254,

  21. Slide 21: Billings by Service Category (YTD, by Quarter)

    Billings by Service Category (YTD, by Quarter) Q3 FY2023 YTD（9-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Newspapers 22,492 -1,110 -4.7% 7,130 -2.0% 6,917 -2.5% 8,443 -8.5% Magazines 5,680 -419 -6.9% 1,690 +8.8% 1,876 -9.4% 2,113 -14.6% Radio 7,406 -1,077 -12.7%

  22. Slide 22: Billings by Clients' Industry

    Billings by Clients’ Industry （Millions of JPY） Actual YOY Composition Q3 FY2023, YTD Information/Communications 92,154 -11,463 -11.1% 11.8% Beverages/Cigarettes/Luxury foods 87,191 -1,066 -1.2% 11.2% Automobiles/Related products 76,814 +3,443 +4.7% 9.8% Foodstuffs 55,192 -3,881 -6.6% 7.1% Restauran

  23. Slide 23: Billings by Clients' Industry

    Billings by Clients’ Industry  Positive Industries Transportation/Leisure Q3 FY2023 Actual ¥ 35.5bil YoY +¥ 7.2bil (+25.4%) Distribution/Retailing ¥ 46.1bil +¥ 5.2bil (+12.7%)  Negative Industries Government/Organizations Q3 FY2023 Actual ¥19.9bil YoY -¥14.5bil (-42.2％) Information/Communications

  24. Slide 24: Billings by Clients' Industry (by Quarter) 1

    Billings by Clients’ Industry (by Quarter) 1 FY2021 FY2022 FY2023 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 23

  25. Slide 25: Billings by Clients' Industry (by Quarter) 2

    Billings by Clients’ Industry (by Quarter) 2 FY2021 FY2022 FY2023 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 24

  26. Slide 26: Billings by Clients' Industry (by Quarter) 3

    Billings by Clients’ Industry (by Quarter) 3 FY2021 FY2022 FY2023 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 25

  27. Slide 27: Billings by Clients' Industry (by Quarter) 4

    Billings by Clients’ Industry (by Quarter) 4 FY2021 FY2022 FY2023 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 26

  28. Slide 28: Selling, General & Administrative Expenses

    Selling, General & Administrative Expenses Q3 FY2023, YTD （Millions of JPY） Actual YOY Major Change Factors in SG&A (Millions of JPY) Personnel 176,011 +16,268 +10.2% FY22 Q3 SG&A 240,791 Rent 15,498 +527 +3.5% Change in scope of consolidation +2,884 Depreciations 7,309 +1,244 +20.5% Amortization of

  29. Slide 29: Other Income & Extra-ordinary Items

    Other Income & Extra-ordinary Items Q3 FY2023, YTD Other Income/Loss （Millions of JPY） Actual YOY Non-operating Income 4,062 -984 Interest Income 373 +56 Dividend Income 2,025 +151 FOREX 273 -917 Investment Partership Income - -465 Non-operating Expenses 2,694 +1,340 Interest Expenses 998 +620 Equit

  30. Slide 30: Balance Sheets

    Balance Sheets （Millions of JPY） As of December 2023 Change * Composition Current Assets 673,148 -7,580 64.5% Cash & Deposits 176,090 13,108 Accounts Recievable 371,902 -39,206 Non-current Assets 370,378 24,691 35.5% Tangible Assets 63,582 5,162 Intangible Assets 110,138 1,671 Goodwill 69,936 -1,741

  31. Slide 31: Cash Flow Statements

    Cash Flow Statements Q3 FY2023, YTD （Millions of JPY） Actual YOY Cash Flows from Operating Activities -18,712 -69,711 Cash Flows from Investing Activities -13,066 +13,923 Purchase of property, plant and equipment -5,479 -1,813 Purchase of intangible assets -7,267 -26 Purchase of investment securitie

  32. Slide 32: Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

    Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

Hakuhodo DY Holdings — Q3 FY2023 Earnings Presentation on 6ix