Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — Q3 2020 Earnings Presentation
32 slides from Hakuhodo Dy's earnings presentation, Feb 10, 2021
Slide 1: Consolidated Financial Highlights Fiscal Year Ending December 31, 2020 (Q3 FY 2020)
Consolidated Financial Highlights Fiscal Year Ending December 31, 2020 (Q3 FY 2020) February 10, 2021 Hakuhodo DY Holdings, Inc.
Slide 2: Consolidated Results Highlights of Q3 FY 2020
Consolidated Results Highlights of Q3 FY 2020
Slide 3: Q3 FY2020 Summary
Q3 FY2020 Summary More pronounced recovery in top-line, and significant improvement in profit compared to Q2 - On a year-to-date basis, billings declined by double digits due to the impact of spread of COVID-19. - Revenue margin improved by 1.6 percentage points due to successful efforts to improve
Slide 4: Q3 FY2020 Income Statements Highlight
Q3 FY2020 Income Statements Highlight ▶ See p.17 for details. （Millions of JPY） Actual YOY Differe Billings 883,038 -185,176 -17.3% Operating Income 18,860 -18,832 -50.0% Ordinary Income 21,402 -18,401 -46.2% Net Income Attributable to Owners of Parent 9,091 -22,521 -71.2% - Billings fell by 50.0% y
Slide 5: Q3 FY2020 Results (Excluding Investment Business)
Q3 FY2020 Results (Excluding Investment Business) ▶ See p.18 for details. (Millions of JPY) Actual YOY Revenue & Operating Income before amortization of goodwill by quarter Billings 877,076 -185,424 -17.5% （millions of JPY） Revenue 207,015 -27,197 -11.6% Gross Margin 23.6% +1.6pt SGA 193,857 -8,038
Slide 6: Q3 FY2020 Operating Income before Amortizing of Goodwill
Q3 FY2020 Operating Income before Amortizing of Goodwill Consolidation（Excluding Investment Business） Japan - Top line is on a recovery trend after bottoming out in Q1, with Q3 on a par with the same period last year - Operating profit before amortization of goodwill in Q3 is up on last year, by con
Slide 7: Results by Region (Japan: Excluding Investment Business)
Results by Region (Japan: Excluding Investment Business) Q3 FY2020 ▶ See p.19-20 for details. (Millions of JPY) Actual YOY Revenue & Operating Income before amortization of goodwill by quarter Billings 778,096 -174,620 -18.3% （millions of JPY） Revenue 163,994 -23,109 -12.4% Gross Margin 21.1% +1.4pt
Slide 8: Results by Region (Overseas)
Results by Region (Overseas) Q3 FY2020 ▶ See p.19-20 for details. (Millions of JPY) Actual YOY Revenue & Operating Income before amortization of goodwill by quarter Billings 103,266 -12,612 -10.9% （Millions of JPY） Revenue 45,165 -4,100 -8.3% Gross Margin 43.7% +1.2pt SGA 50,016 -547 -1.1% Operating
Slide 9: Billings by Service Category
Billings by Service Category ▶ See p.21 for details. Q3 FY2020 YTD Composition (Millions of JPY) Actual YOY Ratio Newspapers 26,097 -6,183 -19.2% 3.4% Magazines 7,819 -5,657 -42.0% 1.0% Radio 8,839 -2,354 -21.0% 1.2% Television 268,559 -51,579 -16.1% 35.0% Trad-Media Service Subtotal 311,315 -65,774
Slide 10: Billings by Clients’ Industry
Billings by Clients’ Industry See p.22-26 for details. Q3 FY2020 YTD • The scope of tabulation has been expanded and some of the methods of tabulation have been changed from the current fiscal year, and the results of the previous year have been retroactively restated. - Main Negative Industries Tra
Slide 11: Selling, General & Administrative Expenses
Selling, General & Administrative Expenses Q3 FY2020 YTD Major Change Factors in SGA (JPY billion) （Millions of JPY） Actual YOY Personnel 133,002 -1,716 -1.3% FY19 Q3 SG&A 201,895 Rent 13,744 +482 +3.6% +3,749 Change in scope of consolidation Depreciations 4,548 +719 +18.8% Amortization of goodwill
Slide 12: Other Income & Extra-ordinary Items
Other Income & Extra-ordinary Items Q3 FY2020 YTD Other Income （Millions of JPY） Actual YOY Non-operating Income 3,692 +750 Interest Income 204 -120 Dividend Income 2,359 +319 Equity Method Earnings 205 +116 Non-operating Expenses 1,151 +318 Interest Expenses 369 -64 FOREX 361 +249 Extra-ordinary It
Slide 13: Guidance for FY2020
Guidance for FY2020
Slide 14: Guidance for FY2020
Guidance for FY2020 See p.27 for details. The following upward revisions are made to the full-year forecast for the financial year ending 31 March 2021 ASSUMPTION - Reflects third quarter results and recent recovery in demand - Assuming that the declaration of a state of emergency has less of an imp
Slide 15: Dividends for FY2020
Dividends for FY2020 No change in forecast of dividends （@JPY/share） 14
Slide 16: Cautionary Statements Concerning Forward-looking Statements, & Note Concerning Audits
Cautionary Statements Concerning Forward-looking Statements, & Note Concerning Audits （Cautionary Statements Concerning Forward-looking Statements） This presentation includes forward-looking statements concerning forecasts of operating results, business plans and policies, management strategies, goa
Slide 17: Supplements
Supplements
Slide 18: Interim Income Statements
Interim Income Statements Japanese GAAP-basis Interim Income Statements for Q3 FY2020 YTD（9-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 883,038 -185,176 -17.3% 261,023 -21.6% 273,041 -22.0% 348,972 -9.4% Revenue 212,786 -26,802 -11.2% 64,650 -10.8% 65,044 -2
Slide 19: Results Excluding Investment Business
Results Excluding Investment Business Q3 FY2020 YTD （9-Month） by Quarter（3-Month） Results Excluding Investment Business （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 877,076 -185,424 -17.5% 255,573 -22.6% 272,786 -21.6% 348,716 -9.2% Revenue 207,015 -27,197 -11.6% 59,258 -15.3% 64,867 -
Slide 20: Results by Region
Results by Region Q3 FY2020 YTD （Millions of JPY） Actual YOY Japan Billings 784,057 -174,371 -18.2% Revenue 169,765 -22,715 -11.8% SG&A 134,909 -7,609 -5.3% Operating Income 34,855 -15,105 -30.2% International Billings 103,266 -12,612 -10.9% Revenue 45,165 -4,100 -8.3% SG&A 50,016 -547 -1.1% Operati
Slide 21: Results by Region (excluding investment business)
Results by Region (excluding investment business) Q3 FY2020 YTD （9 -Month） by Quarter（3-Month） Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 778,096 -174,620 -18.3% 218,766 -26.3% 244,623 -21.7% 314,705 -8.4% Revenue 163,994 -23,109 -12.4% 43,79
Slide 22: Billings by Service Category
Billings by Service Category Q3 FY2020 YTD （9 -Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Newspapers 26,097 -6,183 -19.2% 6,382 -37.4% 8,234 -23.9% 11,480 +2.0% Magazines 7,819 -5,657 -42.0% 2,391 -38.8% 2,221 -49.3% 3,205 -38.2% Radio 8,839 -2,354 -21.0% 2,727
Slide 23: Billings by Clients’ Industry
Billings by Clients’ Industry Q3 FY2020 YTD （Millions of JPY） Actual YOY Composition Information/Communications 82,375 -14,951 -15.4% 12.3% Beverages/Cigarettes/Luxury foods 79,795 -9,357 -10.5% 11.9% Automobiles/Related products 77,057 -24,691 -24.3% 11.5% Foodstuffs 52,829 -7,511 -12.4% 7.9% Cosme
Slide 24: Billings by Clients’ Industry (by Quarter) 1
Billings by Clients’ Industry (by Quarter) 1 Major Industries Left：FY19、Right：FY20 (Millions of JPY) Information/Communications Beverages/Cigarettes/Luxury foods Automobiles/Related products +8,000 +8,000 +8,000 +4,040 +3,651 +3,318 +3,000 +1,615 +3,000 +1,976 +737 +513 +3,000 +1,012 -2,000 -2,000 -
Slide 25: Billings by Clients’ Industry (by Quarter) 2
Billings by Clients’ Industry (by Quarter) 2 Major Industries Left：FY19、Right：FY20 (Millions of JPY) Finance/Insurance Restaurant/Services Distribution/Retailing +8,000 +8,000 +8,000 +3,000 +1,200 +3,000 +3,000 +300 +468 +161 +529 +72 -2,000 -229 -2,000 -2,000 -1,201 -1,110 -718 -1,714 -1,156 -1,198
Slide 26: Billings by Clients’ Industry (by Quarter) 3
Billings by Clients’ Industry (by Quarter) 3 Major Industries Left：FY19、Right：FY20 (Millions of JPY) Household products Apparel/Accessories Energy/Material/Machinery +8,000 +8,000 +8,000 +3,000 +3,000 +3,000 +1,551 +1,426 +249 +331 +165 +344 +365 +341 -2,000 -144 -756 -105 -2,000 -2,000 -708 -411 -7
Slide 27: Billings by Clients’ Industry (by Quarter) 4
Billings by Clients’ Industry (by Quarter) 4 Major Industries Left：FY19、Right：FY20 (Millions of JPY) Education/Medical services/Religion Precision machinery/Office supplies Classified advertising/Other +8,000 +8,000 +8,000 +3,000 +3,000 +908 +3,000 +219 +433 +304 +559 +73 -2,000 -30 -164 -220 -1,278
Slide 28: Balance Sheets
Balance Sheets （Millions of JPY） End of Dec 2020 Change * Composition Current Assets 552,038 -43,041 65.0% Cash & Deposits 156,835 -9,741 Accounts Recievable 303,208 -53,892 Non-current Assets 297,855 +33,047 35.0% Tangible Assets 33,297 -832 Intangible Assets 66,103 +13,720 Goodwill 39,182 +11,276
Slide 29: Cash Flow Statements
Cash Flow Statements Q3 FY2020 （Millions of JPY） Actual YOY Cash Flows from Operating Activities 4,516 +8,185 Cash Flows from Investing Activities -10,317 -11,211 Purchase of property, plant and equipment -2,240 +2,443 Proceeds from sales of property, plant and equipment 105 -3,915 Purchase of intan
Slide 30: Results of Major Agencies
Results of Major Agencies Q3 FY2020 （Millions of JPY） Actual YOY Hakuhodo (Consolidated) Billings 606,465 -125,771 -17.2% Ordinary Income 15,467 -13,334 -46.3% Net Income Attributable to Owners of Parent 5,453 -11,426 -67.7% Daiko (Consolidated) Billings 100,215 -15,539 -13.4% Ordinary Income 990 -1
Slide 31: Guidance
Guidance FY2020 （Millions of JPY） Forecast YOY Q3 YTD YOY Q4 YOY Billings 1,260,000 -206,249 -14.1% 883,038 -185,176 -17.3% 376,961 -21,072 -5.3% Operating Income 30,000 -25,131 -45.6% 18,860 -18,832 -50.0% 11,139 -6,298 -36.1% Ordinary Income 33,000 -25,100 -43.2% 21,402 -18,401 -46.2% 11,597 -6,69
Slide 32: HakuhodoDY holdings
HakuhodoDY holdings REDY RIVET 14 UIA