Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — FY2018 Earnings Presentation
54 slides from Hakuhodo Dy's earnings presentation, May 14, 2019
Slide 1: Consolidated Financial Highlights Fiscal Year Ended March 31, 2019 (FY2018)
Consolidated Financial Highlights Fiscal Year Ended March 31, 2019 (FY2018) 2019.5.14
Slide 2: Cautionary statement concerning forward-looking statements, Note concerning audits
Cautionary statement concerning forward-looking statements, Note concerning audits This presentation includes forward-looking statements concerning forecasts of operating results, business plans and policies, management strategies, goals, plans, numbers involving the future, views and evaluations of
Slide 3: Consolidated Financial Highlights for FY 2018
Consolidated Financial Highlights for FY 2018
Slide 4: Consolidated Financial Highlights (1)
Consolidated Financial Highlights （1） Exceeded Medium-Term Business Plan target of ¥57.0 billion in operating income before amortization of goodwill The figures in parentheses below represent amount and percentage increases/decreases that exclude the impact from the sale of Mercari, Inc.’s shares (h
Slide 5: Consolidated Financial Highlights (2)
Consolidated Financial Highlights （2） (Millions of yen) 1H of 2H of Total of YoY comparisons YoY comparisons YoY comparisons FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 Change (%) Change (%) Change (%) Billings 610,945 663,375 52,430 8.6% 724,085 782,239 58,153 8.0% 1,335,030 1,445,614 110,583 8.3% Re
Slide 6: Consolidated Financial Highlights (3)
Consolidated Financial Highlights （3） 【Consolidated Financial Highlights】 【Impact from Mercari】 【Excluding impact from Mercari】 Full year Full year Full year FY2017 FY2018 YoY comparisons FY2017 FY2018 YoY comparisons FY2017 FY2018 YoY comparisons (Millions of yen) (Result) (Result) change （％） (Resu
Slide 7: Consolidated Financial Highlights (4)
Consolidated Financial Highlights （4） (Millions of yen) 1Q of 2Q of 3Q of 4Q of Total of YoY comparisons YoY comparisons YoY comparisons YoY comparisons YoY comparisons FY2018 FY2018 FY2018 FY2018 FY2018 Change (%) Change (%) Change (%) Change (%) Change (%) Billings 323,870 22,706 7.5% 339,504 29,7
Slide 8: Consolidated Financial Highlights (5)
Consolidated Financial Highlights （5） 【Excluding impact from Mercari】 (Millions of yen) 1Q of 2Q of 3Q of 4Q of Total of FY2018 YoY comparisons FY2018 YoY comparisons FY2018 YoY comparisons FY2018 YoY comparisons FY2018 YoY comparisons (Result) change （％） (Result) change （％） (Result) change （％） (Res
Slide 9: Consolidated Financial Highlights (6)
Consolidated Financial Highlights （6） 【Difference between full-year results and forecast announced in November 2018】 （Millions of yen） Full year Full year Full year Difference between full-year results and forecast announced in November 2018 FY2017 New forecasts YoY comparisons FY2018 YoY comparison
Slide 10: Results by Region (1)
Results by Region （1） Total of YoY comparisons FY2017 FY2018 (Millions of yen) Change （%) Billings 1,255,184 1,300,835 45,651 3.6% ■ Japan: Impact from Mercari ■ Revenue 240,803 264,213 23,409 9.7% ・Please refer to page 11 for results that exclude Japan (Gross margin) (19.2%) (20.3%) (+1.1%) the imp
Slide 11: Results by Region (2)
Results by Region （2） 1H of 2H of Total of YoY comparisons YoY comparisons YoY comparisons FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 (Millions of yen) Change （%) Change （%) Change （%) Billings 572,314 595,522 23,207 4.1% 682,869 705,313 22,444 3.3% 1,255,184 1,300,835 45,651 3.6% Revenue 107,998 126
Slide 12: Results by Region (3)
Results by Region （3） Results by Region (Japan) 【Excluding impact from Mercari】 1Q of 2Q of 3Q of 4Q of Total of YoY comparisons YoY comparisons YoY comparisons YoY comparisons YoY comparisons FY2018 FY2018 FY2018 FY2018 FY2018 (Millions of yen) Change （%) Change （%) Change （%) Change （%) Change （%)
Slide 13: Billings by Industry (New compiling method) (1)
Billings by Industry (New compiling method)（1） (Millions of yen) Total of YoY comparisons FY2017 Share FY2018 Share Change （%) Automobiles/Related products 139,097 12.7% 128,027 11.6% (11,070) -8.0% Information/Communications 125,302 11.5% 134,784 12.2% 9,482 7.6% Beverages/Cigarettes/Luxury foods 1
Slide 14: Billings by Industry (New compiling method) (2)
Billings by Industry (New compiling method) （2） Year-on-year changes for the period ended March 2019 (Millions of yen) Restaurant/Services Information/Communications Major Changes (Largest Increases) Total of Y o Y comparisons Distribution/Retailing FY'18 (%) Change Energy/Material/Machinery Restaur
Slide 15: Billings by Industry (New compiling method) (3)
Billings by Industry (New compiling method) （3） Quarterly YoY Changes (1) Top 3 Largest Total(±) Changes by Industry（Millions of Yen） Restaurant/Services Information/Communications Distribution/Retailing +12,000 +12,000 +12,000 +10,450 +10,000 +10,000 +9,482 +10,000 +8,000 +8,000 +8,000 +6,000 +6,00
Slide 16: Billings by Industry (New compiling method) (4)
Billings by Industry (New compiling method) （4） Quarterly YoY Changes(2) Other Major Industries（Millions of Yen） Beverages/Cigarettes/Luxury foods Cosmetics/Toiletries Finance/Insurance +12,000 +12,000 +12,000 +10,000 +10,000 +10,000 +8,000 +8,000 +8,000 +6,000 +6,000 +6,000 +4,000 +4,000 +4,000 +2,
Slide 17: Billings by Industry (New compiling method) (5)
Billings by Industry (New compiling method) （5） (Millions of yen) １Ｑ of YoY comparisons 2Q of YoY comparisons ３Ｑ of YoY comparisons ４Ｑ of YoY comparisons Total of YoY comparisons FY2018 Change （%) FY2018 Change （%) FY2018 Change （%) FY2018 Change （%) FY2018 Change （%) Automobiles/Related products 26
Slide 18: Billings by Industry (New compiling method) (6)
Billings by Industry (New compiling method) （6） 【Reference: Results for FY2017 under the New Compilation Method】 (Millions of yen) １Ｑ of YoY comparisons 2Q of YoY comparisons ３Ｑ of YoY comparisons ４Ｑ of YoY comparisons Total of YoY comparisons FY2017 Change （%) FY2017 Change （%) FY2017 Change （%) FY
Slide 19: Billings by Service Area (1)
Billings by Service Area (1) (Millions of yen) Total of Total of YoY comparisons FY2017 FY2018 Amount Share Amount Share Change （%) Newspapers 55,664 4.7% 48,022 4.0% (7,642) -13.7% Magazines 20,753 1.8% 17,984 1.5% (2,769) -13.3% Radio 13,209 1.1% 13,690 1.1% 481 3.6% Television 442,514 37.7% 439,0
Slide 20: Billings by Service Area (2)
Billings by Service Area (2) (Millions of yen) １Ｑ of 2Ｑ of 3Ｑ of 4Ｑ of Total of YoY comparisons YoY comparisons YoY comparisons YoY comparisons YoY comparisons FY2018 FY2018 FY2018 FY2018 FY2018 Amount Change （%) Amount Change （%) Amount Change （%) Amount Change （%) Amount Change （%) Newspapers 10,6
Slide 21: Changes in SG&A Expenses (1)
Changes in SG&A Expenses（1） (Millions of yen) 1Ｈ of YoY comparisons ２Ｈ of YoY comparisons Total of YoY comparisons FY2017 FY2018 Change （%) FY2017 FY2018 Change （%) FY2017 FY2018 Change (%) Personnel costs 69,370 81,235 11,864 17.1% 77,462 91,539 14,077 18.2% 146,832 172,774 25,942 17.7% Other Ｅxpen
Slide 22: Changes in SG&A Expenses (2)
Changes in SG&A Expenses（2） (billions of yen) Change Factors in SG&A Expenses ↑4.1 ↑7.7 ↑3.3 ↑0.2 ↑24.1 259.5 220.1 200 FY2017 Changes in Retirement Amortization Personnel costs Others FY2018 consolidation benefit costs of goodwill (excl. factors (excl. factors at left) at left) May 14, 2019 Consoli
Slide 23: Non-Operating Items and Extraordinary Gains and Losses
Non-Operating Items and Extraordinary Gains and Losses (Millions of yen) １Ｈ of YoY comparisons ２Ｈ of YoY comparisons Total of YoY comparisons FY2017 FY2018 Change （%） FY2017 FY2018 Change （%） FY2017 FY2018 Change （%） Non-operating income 1,602 2,228 625 39.1% 1,204 1,946 741 61.6% 2,807 4,175 1,367
Slide 24: Consolidated Balance Sheets
Consolidated Balance Sheets (Millions of yen) Mar. 31, 2018 Mar. 31, 2019 Comparisons Amount Share Amount Share Change (%) Current assets 538,905 67.5% 613,795 67.8% 74,890 13.9% Fixed assets 259,230 32.5% 291,751 32.2% 32,521 12.5% Total assets 798,135 100.0% 905,547 100.0% 107,411 13.5% Current li
Slide 25: Consolidated Statements of Cash Flow
Consolidated Statements of Cash Flow (Millions of yen) Total of Y o Y comparisons FY2017 FY2018 Change Cash flow from operating activities 32,372 53,522 21,150 Cash flow from investing activities (20,499) (22,815) (2,316) Cash flow from financing activities (14,401) (21,974) (7,572) Effect of exchan
Slide 26: Highlights of Operating Results at Major Subsidiaries
Highlights of Operating Results at Major Subsidiaries (Millions of yen) ◎Billings rose ¥51.8 billion, or 5.5%, year on year. Total of YoY comparisons ・Client industries with billings increases: Restaurant/Services, Information/Communications FY2017 FY2018 Change (%) ・Client industries with billings
Slide 27: Consolidated Business Outlook for Fiscal 2019
Consolidated Business Outlook for Fiscal 2019
Slide 28: Consolidated Business Outlook for Fiscal 2019 (1)
Consolidated Business Outlook for Fiscal 2019（1） Projecting Gradual Profit Growth in the First Year of the New Medium-Term Business Plan 【Overview of consolidated forecasts excluding the impact from Mercari】 ◎ Macro environment: Domestic advertising market to grow roughly 1.5% ・Global economy: Despi
Slide 29: Consolidated Business Outlook for Fiscal 2019 (2)
Consolidated Business Outlook for Fiscal 2019（2） 【Consolidated Financial Highlights】 【Impact from Mercari】 【Excluding impact from Mercari】 Full year Full year Full year FY2018 FY2019 YoY comparisons FY2018 FY2019 YoY comparisons FY2018 FY2019 YoY comparisons (Millions of yen) (Result) (Forecasts) ch
Slide 30: Consolidated Business Outlook for Fiscal 2019 (3)
Consolidated Business Outlook for Fiscal 2019（3） 【Excluding impact from Mercari】 As of May.14, 2019 (Millions of yen) 1H 2H Full Year FY2018 FY2019 YoY comparisons FY2018 FY2019 YoY comparisons FY2018 FY2019 YoY comparisons (Result) (Forecasts) change （％） (Result) (Forecasts) change （％） (Result) (Fo
Slide 31: Consolidated Business Outlook for Fiscal 2019 (4)
Consolidated Business Outlook for Fiscal 2019（4） 【Consolidated Financial Highlights】 As of May.14, 2019 （Millions of yen） 1H 2H Full Year FY2018 FY2019 YoY FY2018 FY2019 YoY FY2018 FY2019 YoY (Result) (Forecasts) change （％） (Result) (Forecasts) change （％） (Result) (Forecasts) change （％） Billings 663
Slide 32: The Hakuhodo DY Group's New Medium-Term Business Plan
The Hakuhodo DY Group’s New Medium-Term Business Plan Abbreviations within this document H: Hakuhodo Inc. MP: Hakuhodo DY Media Partners Inc DAC: D.A.Consortium Inc. IREP: IREP Co., Ltd.
Slide 33: Review of the Medium-Term Business Plan FY2014–FY2018
Review of the Medium-Term Business Plan FY2014–FY2018
Slide 34: Medium-Term Business Plan (FY2014–FY2018: 5-year plan)
Medium-Term Business Plan (FY2014–FY2018: 5-year plan) With our mission of serving as the best marketing partner for each one of our clients, the Hakuhodo DY Group stands as one of the world’s top advertising Core Medium-Term and marketing services groups. Strategy Our cutting-edge creative ideas an
Slide 35: Progress of the Medium-Term Strategy
Progress of the Medium-Term Strategy Significant progress was made on the strategies under each of the three growth drivers as a result of our aggressive investment of resources The three growth drivers Status of progress • Strengthened fundamental data and technologies, Growth Drivers 1 continued e
Slide 36: Progress with Numerical Targets
Progress with Numerical Targets (Excluding impact from the sale of Mercari, Inc. shares) We exceeded targets, which were upwardly revised in November 2016, for all the performance indicators we adopted. Medium-Term Business Plan targets Medium-Term FY2018 Business Plan targets Full-year results Op
Slide 37: Progress with Numerical Targets (Excluding Mercari impact)
Progress with Numerical Targets (Excluding impact from the sale of Mercari, Inc. shares) We realized significant revenue increases through the robust growth of our existing operating companies and the positive impact of M&A. International revenue now accounts for over 20% of our total revenue in lin
Slide 38: Details of the New Medium-Term Business Plan
Details of the New Medium-Term Business Plan (Period of the plan: Five years from the fiscal year ending March 31, 2020 to the fiscal year ending March 31, 2024)
Slide 39: Changes in the Business Environment Surrounding the Group
Changes in the Business Environment Surrounding the Group Arrival of an Era of Extreme Innovation through the Shift to “Complete digitalization” Enhanced travel Increased free time 移動の効率化 efficiency 移動の自由時間化 during travel Further acceleration of 大 Large Expansion of ﾍﾙｽｹｱｻｰﾋﾞｽ healthcare e-commerce
Slide 40: Changes in the Business Environment Surrounding the Group
Changes in the Business Environment Surrounding the Group digitalization of information → digitalization of entire lifestyles Ability to connect with anyone, anywhere, and at any time through diverse digital touchpoints Arrival of a sei-katsu-sha-oriented society in which sei-katsu-sha lead vari
Slide 41: Group Strengths
Group Strengths With sei-katsu-sha insight as our cornerstone, the source of our competitiveness is our ability to collaborate with all kinds of partners by marrying sei-katsu-sha data and technology infrastructure with creativity that can shape the future and integrative capabilities that bring tog
Slide 42: Core Medium-Term Strategy
Core Medium-Term Strategy With sei-katsu-sha insight as our cornerstone, the Hakuhodo DY Group will combine its creativity, integrative capabilities, and data and technology utilization skills to play a leading role in evolving companies’ marketing activities and generating innovation in the complet
Slide 43: Aggressive Investment
Strengthening Three Fundamentals for Growth Strengthening three fundamentals for growth through aggressive investment １ Establish a leading position in the broader digital domain ２ ３ Strengthen response Accelerate innovation capabilities for borderless through external corporate activities collabora
Slide 44: Establish a Leading Position in the Broader Digital Domain
１ Establish a leading position in the broader digital domain Establish a Leading Position in the Broader Digital Domain with a View to the Completely Digitalized Era Enhance the sophistication of Ⅰ Sei-katsu-sha Data-Driven Marketing Ⅱ Response to diversifying digital touchpoints Expand our structur
Slide 45: Enhance the sophistication of Sei-katsu-sha Data-Driven Marketing
１-Ⅰ．Enhance the sophistication of Sei-katsu-sha Data-Driven Marketing In anticipation of complete digitalization, we will revamp our technologies, data, systems, and solutions and work to enhance our Sei-katsu-sha Data-Driven Marketing by crossing these with our creativity. Perspective of sophistica
Slide 46: Respond to diversifying digital touchpoints
１-Ⅱ．Respond to diversifying digital touchpoints We will widely roll out response structures for digital touchpoints that are becoming more diversified as a result of such factors as the digitalization of existing media and the emergence of digital touchpoints in physical spaces. Digital touchpoints
Slide 47: Expand our structure in the rapidly growing domain of Internet media
１-Ⅲ．Expand our structure in the rapidly growing domain of Internet media • To establish structures for providing optimal services that meet diverse client needs, not only will we strengthen the functions of our integrated advertising companies, we will also enhance our next-generation digital agency
Slide 48: Strengthen Response Capabilities for Borderless Corporate Activities
２ Strengthen Response Capabilities for Borderless Corporate Activities We will bolster our ability to respond to increasingly borderless corporate activities by strengthening our international operations centering on the following three areas. Strengthen uniform management of Japanese 1 and intern
Slide 49: Accelerate Innovation through External Collaborations
３ Accelerate Innovation through External Collaborations We will build a structure for collaboration with not only our business partners, but also external corporations, such as innovative technology companies, so as to accelerate innovation of the services we provide and our Group. Business partners
Slide 50: Other Major Issues to Address
Other Major Issues to Address We recognize the following as issues on which we need to focus continuously, not only during the period of the new Medium-Term Business Plan. We will contribute to corporations, sei-katsu-sha, and society as a whole through our efforts to realize the Core Medium-Term
Slide 51: New Medium-Term Business Plan targets
New Medium-Term Business Plan targets New Medium-Term Business Plan targets(FY2023) Operating income before amortization of goodwill ¥95.0 billion Important indicators After adjustment = Excluding investment projects Annual growth rate Average over five years* After adjustment *Fiscal year ending
Slide 52: Medium-Term Business Targets: Outline of Growth
51 Medium-Term Business Targets: Outline of Growth We expect high levels of revenue growth on a continuous basis over the next five years. However, as we expect to carry out upfront investments in order to strengthen infrastructure and structure, operating income before amortization of goodwill (aft
Slide 53: Medium-Term Business Targets: Outline of Growth
52 Medium-Term Business Targets: Outline of Growth Based on the strategy previously mentioned, the outline for growth in our Internet media business and international business is as follows. Expansion of the scale of our Profitable growth in our Internet media business international businesses At le
Slide 54: Text printed in Tsutawaru Font
Text in this document is printed in “Tsutawaru Font,” an original font jointly developed by Hakuhodo Inc., TypeBank Co., Ltd., and Keio University. Developed based on the concept of universal design, the purpose of the font is to prevent reading errors and enhance the readability of the text.