Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — FY2022 Earnings Presentation
42 slides from Hakuhodo Dy's earnings presentation, May 12, 2023
Slide 1: Consolidated Financial Highlights FY2022 (April-Mar. 2023)
Consolidated Financial Highlights FY2022 (April-Mar. 2023) May 12, 2023 Hakuhodo DY Holdings, Inc.
Slide 2: Consolidated Results Highlights of FY 2022
Consolidated Results Highlights of FY 2022
Slide 3: FY2022 Summary
FY2022 Summary Top-line growth outperformed the advertising market, with the billings landing ahead of the guidance. Plan to achieve the mid-term business plan(“MTBP”) target in FY2023 - Billings increased by 7.5% YoY. * - In Japan, while the market remained weak, internet media grew by more than do
Slide 4: FY2022 Income Statement Highlights
FY2022 Income Statement Highlights FY2022 （Millions of JPY） Actual YOY Difference from Forecast Billings 1,634,340 +115,418 +7.6% +4,340 +0.3% Revenue 991,137 +96,056 +10.7% +51,137 +5.4% Operating Income 55,409 -16,233 -22.7% +4,409 +8.6% Ordinary Income 60,378 -15,362 -20.3% +7,378 +13.9% Net Inco
Slide 5: FY2022 Results (Excluding Investment Business)
FY2022 Results (Excluding Investment Business) FY2022 (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter Billings 1,626,148 +114,002 +7.5% Revenue 982,946 +94,640 +10.7% Gross Profit 396,194 +15,569 +4.1% Gross Margin 24.4% -0.8pt SGA 348,035 +32,
Slide 6: Results by Region (Japan: Excluding Investment Business)
Results by Region (Japan: Excluding Investment Business) FY2022 (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter Billings 1,383,039 +49,138 +3.7% （millions of JPY） Revenue 739,836 +29,776 +4.2% Gross Profit 300,167 -4,422 -1.5% Gross Margin 21.7
Slide 7: Results by Region (Overseas)
Results by Region (Overseas) FY2022 (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter Billings 253,024 +68,750 +37.3% （Millions of JPY） Revenue 253,024 +68,750 +37.3% Gross Profit 102,049 +23,015 +29.1% Gross Margin 40.3% -2.6pt SGA 108,958 +26,9
Slide 8: Billings by Service Category
Billings by Service Category FY2022 (Millions of JPY) Actual YOY Composition Ratio Newspapers 33,871 -5,595 -14.2% 2.5% Magazines 8,014 +273 +3.5% 0.6% Radio 11,371 -449 -3.8% 0.8% Television 381,783 -12,134 -3.1% 27.9% Trad-Media Service Subtotal 435,040 -17,905 -4.0% 31.8% Internet Media 336,811 +
Slide 9: Billings by Clients' Industry
Billings by Clients’ Industry See p.22-25 for details. FY2022 • 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. - Positive Industries Government/Orga
Slide 10: Selling, General & Administrative Expenses
Selling, General & Administrative Expenses FY2022 （Millions of JPY） Actual YOY Major Change Factors in SG&A (Millions of JPY) Personnel 230,920 +12,131 +5.5% FY21 SG&A 315,450 Rent 19,809 +1,366 +7.4% Change in scope of consolidation +7,718 Depreciations 8,272 +1,550 +23.1% Amortization of goodwill
Slide 11: Other Income & Extra-ordinary Items
Other Income & Extra-ordinary Items FY2022 Other Income/Loss （Millions of JPY） Actual YOY Non-operating Income 7,456 -227 Interest Income 435 -45 Dividend Income 2,222 +509 FOREX 944 +393 Equity Method Earnings - -2,607 Change in fair value of contingent considerations 1,684 +1,684 Non-operating Exp
Slide 12: Guidance/Dividend for FY2023
Guidance/Dividend for FY2023
Slide 13: Guidance for FY2023
Guidance for FY2023 In the fiscal year ending March 31, 2024, the final year of our MTBP, we plan a 3.7% increase in billings to ¥1,695 billion, assuming top-line growth that exceeds the market as in the previous year, despite the uncertain outlook for the economic environment and a significant decl
Slide 14: Dividend forecast
Dividend forecast Our basic policy is to pay stable and continuous dividends. The amount of dividends will be determined after comprehensively taking into consideration the status of demand for financial funds, trends in business performance, and the enhancement of retained earnings. For the fiscal
Slide 15: 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
Slide 16: Supplements
Supplements
Slide 17: Interim Income Statements
Interim Income Statements Japanese GAAP-basis Interim Income Statements for FY2022 YTD（12-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,634,340 +115,418 +7.6% 349,106 +6.8% 370,540 +10.8% 404,745 +7.1% 509,947 +6.3% Revenue 991,137 +96,056 +10.7% 195,
Slide 18: Results Excluding Investment Business
Results Excluding Investment Business FY2022 YTD（12-Month） by Quarter（3-Month） Results Excluding Investment Business （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,626,148 114,002 +7.5% 345,848 +6.8% 369,763 +11.2% 402,522 +6.9% 508,015 +6.0% Revenue 982,946 94,640 +10.7% 192,37
Slide 19: Results by Region
Results by Region FY2022 （Millions of JPY） Actual YOY Japan Billings 1,391,230 +50,554 +3.8% Revenue 748,027 +31,192 +4.4% Gross Profit 307,537 -3,521 -1.1% SG&A 220,858 +1,857 +0.8% Operating Income 86,678 -5,379 -5.8% Overseas Billings 253,024 +68,750 +37.3% Revenue 253,024 +68,750 +37.3% Gross Pr
Slide 20: Results by Region (YTD, by Quarter)
Results by Region(YTD, by Quarter) FY2022 YTD（12-Month） by Quarter（3-Month） Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,383,039 +49,138 +3.7% 298,466 +4.8% 312,603 +7.4% 341,970 +1.9% 429,998 +1.9% Gross Profit 300,167 -4,422 -1.5% 61
Slide 21: Billings by Service Category
Billings by Service Category FY2022 YTD（12-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Newspapers 33,871 -5,595 -14.2% 7,275 -20.9% 7,098 -13.7% 9,229 -12.3% 10,268 -10.9% Magazines 8,014 +273 +3.5% 1,553 -18.6% 2,071 -2.6% 2,474 -6.7% 1,914 +81.8% Radio 1
Slide 22: Billings by Clients' Industry
Billings by Clients’ Industry FY2022 （Millions of JPY） Actual YOY Composition Information/Communications 142,064 -1,147 -0.8% 12.3% Government/Organizations 117,880 +18,175 +18.2% 10.2% Beverages/Cigarettes/Luxury foods 116,028 -8,394 -6.7% 10.0% Automobiles/Related products 104,389 -1,541 -1.5% 9.0
Slide 23: Billings by Clients' Industry (by Quarter)
Billings by Clients’ Industry (by Quarter) 1 FY2021 FY2022 (Millions of JPY) 22
Slide 24: Billings by Clients' Industry (by Quarter)
Billings by Clients’ Industry (by Quarter) 2 (Millions of JPY) 23
Slide 25: Billings by Clients' Industry (by Quarter)
Billings by Clients’ Industry (by Quarter) 3 (Millions of JPY) 24
Slide 26: Billings by Clients' Industry (by Quarter)
Billings by Clients’ Industry (by Quarter) 4 (Millions of JPY) 25
Slide 27: Balance Sheets
Balance Sheets （Millions of JPY） As of Mar. 2023 Change * Composition Current Assets 680,728 -74,125 66.3% Cash & Deposits 162,981 -21,002 Accounts Recievable 411,108 -27,296 Non-current Assets 345,687 47,524 33.7% Tangible Assets 58,419 21,295 Intangible Assets 108,467 36,150 Goodwill 71,678 26,580
Slide 28: Cash Flow Statements
Cash Flow Statements FY2022 （Millions of JPY） Actual YOY Cash Flows from Operating Activities 38,035 +17,182 Cash Flows from Investing Activities -32,792 -21,499 Purchase of property, plant and equipment -7,004 -1,966 Purchase of intangible assets -10,903 -5,491 Purchase of investment securities -4,
Slide 29: Update on Progress under the Medium-Term Business Plan
Update on Progress under the Medium-Term Business Plan Abbreviations within this document HC: Hakuhodo DY Holdings Inc. H: Hakuhodo Inc. D: Daiko Advertising Inc. Y: YOMIKO ADVERTISING INC. MP: Hakuhodo DY Media Partners Inc. DAC: D.A.Consortium Inc. 28
Slide 30: Medium-Term Business Plan (Revised Period: FY2021–FY2023)
Medium-Term Business Plan (Revised Period: FY2021–FY2023) With sei-katsu-sha insight as our cornerstone, the Hakuhodo DY Group will combine our creativity, integrative capabilities, and data and technology utilization skills to play a Core Medium- leading role in evolving companies’ marketing activi
Slide 31: Overview of Progress in FY2022
Overview of Progress in FY2022 ■ Gross profit after adjustments grew due to recovery of advertising demand and foreign exchange impact ■ Operating income after adjustments and before amortization of goodwill saw a double-digit increase compared with the base year, despite the impact of aggressive st
Slide 32: Overview of Progress in FY2022
Overview of Progress in FY2022 ■ Operating income before amortization of goodwill including investment projects has achieved a double-digit growth since the base year, achieving ¥71.4 billion. ■ ROE before amortization of goodwill remains at a double-digit level, despite a decrease in extraordinary
Slide 33: Initiatives to Transform Our Services and Business Foundation
Initiatives to Transform Our Services and Business Foundation ■ We are pursuing the following four initiatives adopted under the MTBP to strengthen our structure and response capabilities: Transform the services we provide: １ Implementation of full-funnel Sei-katsu-sha Data-Driven Marketing Strength
Slide 34: Ongoing Strategic Investment
Ongoing Strategic Investment ■ We are committed to making continued investments to accelerate the transformation of our services and business infrastructure ■ In addition to M&A, we are proactively investing in building a shared foundation of talent, data platform, and IT systems, with the goal of a
Slide 35: Transform the Services We Provide: Expand Marketing Execution Domains
1. Transform the Services We Provide: Expand Marketing Execution Domains ■ Gross profit in marketing execution domains, excluding COVID-19 pandemic-related business process outsourcing (BPO), has grown with CAGR of around 10% from the base year, driven by the growth mainly from the human resource se
Slide 36: Transform the Services We Provide: Transform Media Business
1. Transform the Services We Provide: Transform Media Business ■ Billings in the internet domain have grown with CAGR of 15.2% due to growth in our existing businesses and the positive boost provided by M&A. ■ We have been driving innovation by utilizing "AaaS", a next-generation model for the digit
Slide 37: Strengthen Cross-Organizational Functions to Accelerate Transformation
2. Strengthen Cross-Organizational Functions to Accelerate Transformation ■ We established Hakuhodo DY Corporate Initiative Inc., a new company that enhances operation and increases efficiency in corporate functions, which started operations on April 1, 2023. Hakuhodo DY Holdings Daiko YOMIKO Hakuho
Slide 38: Strengthen Cross-Organizational Functions to Accelerate Transformation
2. Strengthen Cross-Organizational Functions to Accelerate Transformation ■ Hakuhodo DY Corporate Initiative will enhance the capabilities of our corporate functions through talent acquisition and development. The company will also pursue synergies as a cross-organizational function through streamli
Slide 39: Strengthen Response Capabilities for Borderless Corporate Activities
３．Continuously Pursue Transformation Based on Existing Strategies: Strengthen Response Capabilities for Borderless Corporate Activities ■ Gross profit in our overseas businesses has grown with CAGR of 26.6%, with the ratio of overseas gross profit to total gross profit increasing to 25.8%. ■ We have
Slide 40: Acceleration of Innovation through External Collaborations
３．Continuously Pursue Transformation Based on Existing Strategies: Acceleration of Innovation through External Collaborations ■ We have been providing support for companies entering the thriving web3 market. We also have been promoting co-creation and collaborative activities between start-up compan
Slide 41: Strengthen Our Foundation for Sustainable Business Management
４．Strengthen Our Foundation for Sustainable Business Management ■ We formulated the Diversity, Equity & Inclusion Policy with a view to achieve our sustainability goals. ■ We aim realize a truly diverse society through not only our own initiatives but also creativity of our employee. As an entity in
Slide 42: HakuhodoDY holdings
HakuhodoDY holdings