Hakuhodo Dy Holdings Incorporated · TSE:2433

Hakuhodo Dy — 1H FY2023 Earnings Presentation

33 slides from Hakuhodo Dy's earnings presentation, Nov 13, 2023

  1. Slide 1: Consolidated Financial Highlights FY2023 First-half

    Consolidated Financial Highlights FY2023 First-half (April-Sep., 2023) November 13, 2023 Hakuhodo DY Holdings, Inc.

  2. Slide 2: Consolidated Results Highlights of 1H FY2023

    Consolidated Results Highlights of 1H FY 2023 (Notes about Retroactive Restatement) In April 2022, we conducted tentative accounting treatment for the business combination associated with the acquisition of shares of SoldOut, Inc. in accordance with Japanese GAAP. The treatment was finalized at the

  3. Slide 3: 1H FY2023 Income Statement Highlights

    1H FY2023 Income Statement Highlights 1H FY2023 （Millions of JPY） Actual YOY Billings 697,854 -21,791 -3.0% Revenue 399,558 -19,824 -4.7% Operating Income 1,346 -19,165 -93.4% Ordinary Income 3,562 -20,431 -85.2% Net Income Attributable to Owners of Parent -10,872 -22,586 -192.8% - Billings decrease

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

    1H FY2023 Results (Excluding Investment Business) 1H FY2023 (Millions of JPY) Actual YOY Billings 691,576 -24,034 -3.4% Revenue 393,279 -22,067 -5.3% Gross Profit 168,962 -4,405 -2.5% Gross Margin 24.4% +0.2pt SGA 173,534 +16,905 +10.8% Operating Income -4,571 -21,310 -127.3% Operating Margin -2.7%

  5. Slide 5: Billings (Excluding Investment Business)

    Billings (Excluding Investment Business) 1H FY2023 Consolidated ¥691.5 billion (-¥24.0 billion / -3.4% YoY) (Billions of JPY) • In Japan, excluding the impact of COVID-19 related BPO operations, our performance is on par with the previous year. We have been promoting the use of AaaS and group collab

  6. Slide 6: Gross Profit (Excluding Investment Business)

    Gross Profit (Excluding Investment Business) 1H FY2023 Consolidated Gross Profit : ¥168.9 billion (-¥4.4 billion / -2.5% YoY) - Gross Margin : 24.4% (+0.2pt YoY) (Billions of JPY) • In Japan, gross margin improved by 0.1 pt YoY due to the contribution of various technology- based solutions such as A

  7. Slide 7: SG&A (Excluding Investment Business)

    SG&A (Excluding Investment Business) 1H FY2023 Consolidated ¥173.5 billion (+¥16.9 billion / +10.8% YoY) (Billions of JPY) Major Change Factors in SG&A (Billions of JPY) 1H FY22 SG&A 156.6 Change in scope of consolidation +2.8 Amortization of goodwill -0.5 Impact of exchange rate fluctuations +3.3 N

  8. Slide 8: Operating Income/Loss (Excluding Investment Business)

    Operating Income/Loss (Excluding Investment Business) 1H FY2023 Consolidated Operating Loss : -¥4.5 billion (-¥21.3 billion) - Operating Margin : -2.7% (-12.4pt YoY) Operating Income before Goodwill : ¥3.1 billion (-¥21.8 billion) - Operating Margin before Goodwill : 1.9% (-12.5pt YoY) Operating Inc

  9. Slide 9: Guidance for FY2023

    Guidance for FY2023 8

  10. Slide 10: Guidance for FY2023

    Guidance for FY2023 ・ Based on the 1H results and the 2H outlook, we have revised our full-year forecasts. ・ The main reasons for the revision are as follows. The first is a decrease in earnings at some bases in North America. Despite pushing for cost structure reforms and expecting to improve profi

  11. Slide 11: Shareholder Returns

    Shareholder Returns 10

  12. Slide 12: Shareholder Returns

    Shareholder Returns Dividend forecast for FY2023 • The annual dividend will be ¥32 per share (including an interim dividend of ¥16 per share), unchanged from the previous forecast. 11

  13. Slide 13: Change in accounting standards & Note Concerning Audits

    Cautionary Statements Concerning Forward-looking Statements, リレーションシップ ID rId2 のイメージ パーツがファイルにありませんでした。 Change in accounting standards & Note Concerning Audits （Cautionary Statements Concerning Forward-looking Statements） This presentation includes forward-looking statements concerning forecasts of

  14. Slide 14: Supplements

    Supplements

  15. Slide 15: Interim Income Statements

    Interim Income Statements Japanese GAAP-basis Interim Income Statements for 1H FY2023 YTD（6-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 697,854 -21,791 -3.0% 354,422 +1.5% 343,432 -7.3% Revenue 399,558 -19,824 -4.7% 201,466 +3.0% 198,091 -11.5% Gross Profit 175,090

  16. Slide 16: Results Excluding Investment Business

    Results Excluding Investment Business 1H FY2023 YTD（6-Month） by Quarter（3-Month） Results Excluding Investment Business （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 691,576 -24,034 -3.4% 348,568 +0.8% 343,007 -7.2% Revenue 393,279 -22,067 -5.3% 195,612 +1.7% 197,667 -11.3% Gross Profit 168,962

  17. Slide 17: Results by Region

    Results by Region 1H FY2023 （Millions of JPY） Actual YOY Japan Billings 591,807 -23,297 -3.8% Revenue 293,510 -21,330 -6.8% Gross Profit 130,975 -2,818 -2.1% SG&A 109,182 +10,565 +10.7% Operating Income 21,792 -13,383 -38.0% Overseas Billings 114,834 +6,001 +5.5% Revenue 114,834 +6,001 +5.5% Gross P

  18. Slide 18: Results by Region (YTD, by Quarter)

    Results by Region(YTD, by Quarter) 1H FY2023 YTD（6-Month） by Quarter（3-Month） Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Billings 585,529 -25,540 -4.2% 297,790 -0.2% 287,738 -8.0% Gross Profit 124,847 -5,131 -3.9% 62,137 +1.4% 62,710 -8.7% Gross Margin 21.3%

  19. Slide 19: Results by Region (Japan: Excluding Investment Business)

    Results by Region (Japan: Excluding Investment Business) 1H FY2023 (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter （Millions of JPY） Billings 585,529 -25,540 -4.2% Revenue 287,232 -23,608 -7.6% Gross Profit 124,847 -5,131 -3.9% Gross Margin 21.

  20. Slide 20: Results by Region (Overseas)

    Results by Region (Overseas) 1H FY2023 Gross profit & Operating Income before amortization (Millions of JPY) Actual YOY of goodwill by quarter （Millions of JPY） Billings 114,834 +6,001 +5.5% Revenue 114,834 +6,001 +5.5% Gross Profit 50,110 +3,750 +8.1% Gross Margin 43.6% +1.0pt SGA 56,674 +6,190 +12

  21. Slide 21: Billings by Service Category

    Billings by Service Category 1H FY2023 Composition (Millions of JPY) Actual YOY Ratio Newspapers 14,048 -325 -2.3% 2.4% Magazines 3,566 -58 -1.6% 0.6% Radio 5,030 -602 -10.7% 0.9% Television 177,092 -1,057 -0.6% 30.9% Trad-Media Service Subtotal 199,737 -2,043 -1.0% 34.8% Internet Media 164,101 +7,7

  22. Slide 22: Billings by Service Category

    Billings by Service Category 1H FY2023 YTD（6-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Newspapers 14,048 -325 -2.3% 7,130 -2.0% 6,917 -2.5% Magazines 3,566 -58 -1.6% 1,690 +8.8% 1,876 -9.4% Radio 5,030 -602 -10.7% 2,524 -11.9% 2,505 -9.4% Television 177,092 -1,057 -0.

  23. Slide 23: Billings by Clients' Industry

    Billings by Clients’ Industry 1H FY2023 （Millions of JPY） Actual YOY Composition Information/Communications 57,013 -9,220 -13.9% 11.9% Beverages/Cigarettes/Luxury foods 51,800 -7,091 -12.0% 10.8% Automobiles/Related products 43,916 -3,000 -6.4% 9.2% Restaurant/Services 35,030 +3,672 +11.7% 7.3% Cosm

  24. Slide 24: Billings by Clients' Industry

    Billings by Clients’ Industry 1H FY2023 - Positive Industries Distribution/Retailing 1H FY2023 Actual ¥ 27.9bil YoY +¥ 5.6bil (+25.6%) Transportation/Leisure ¥ 20.3bil +¥ 3.9bil (+24.4%) - Negative Industries Government/Organizations 1H FY2023 Actual ¥ 8.7bil YoY -¥18.6bil (-68.2％) Information/Commu

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

    Billings by Clients’ Industry (by Quarter) 1 FY2021 FY2022 FY2023 (Millions of JPY) 24

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

    Billings by Clients’ Industry (by Quarter) 2 FY2021 FY2022 FY2023 (Millions of JPY) 25

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

    Billings by Clients’ Industry (by Quarter) 3 FY2021 FY2022 FY2023 (Millions of JPY) 26

  28. Slide 28: Billings by Clients' Industry (by Quarter)

    Billings by Clients’ Industry (by Quarter) 4 FY2021 FY2022 FY2023 (Millions of JPY) 27

  29. Slide 29: Selling, General & Administrative Expenses

    Selling, General & Administrative Expenses 1H FY2023 （Millions of JPY） Actual YOY Personnel 116,661 +12,753 +12.3% Rent 10,440 +633 +6.5% Depreciations 4,627 +687 +17.5% Amortization of Goodwill 7,703 -511 -6.2% Others 34,310 +3,523 +11.4% Others 57,082 +4,333 +8.2% SGA total 173,744 +17,086 +10.9%

  30. Slide 30: Other Income & Extra-ordinary Items

    Other Income & Extra-ordinary Items 1H FY2023 （Millions of JPY） Actual YOY Other Income/Loss Non-operating Income 4,014 -294 Interest Income 264 +75 Dividend Income 1,395 +77 FOREX 1,299 -41 Investment Partership Income - -471 Non-operating Expenses 1,798 +971 Interest Expenses 585 +375 Equity Metho

  31. Slide 31: Balance Sheets

    Balance Sheets （Millions of JPY） As of September 2023 Change * Composition Current Assets 595,471 -85,257 61.9% Cash & Deposits 158,619 -4,362 Accounts Recievable 319,773 -91,334 Non-current Assets 366,872 21,185 38.1% Tangible Assets 62,378 3,958 Intangible Assets 112,391 3,924 Goodwill 72,063 385

  32. Slide 32: Cash Flow Statements

    Cash Flow Statements 1H FY2023 （Millions of JPY） Actual YOY Cash Flows from Operating Activities -23,587 -71,204 Cash Flows from Investing Activities -11,465 +7,385 Purchase of property, plant and equipment -3,181 -650 Purchase of intangible assets -5,346 -686 Purchase of investment securities -3,51

  33. Slide 33: HakuhodoDY holdings

    HakuhodoDY holdings

Hakuhodo DY Holdings — 1H FY2023 Earnings Presentation on 6ix