Hakuhodo Dy Holdings Incorporated · TSE:2433

Hakuhodo Dy — Q3 FY2019 Earnings Presentation

30 slides from Hakuhodo Dy's earnings presentation, Feb 10, 2020

  1. Slide 1: Consolidated Financial Highlights 3Q of Fiscal Year Ending March 31, 2020

    Consolidated Financial Highlights 3Q of Fiscal Year Ending March 31, 2020 (3Q of FY 2019) 2020.2.10

  2. 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

  3. Slide 3: Consolidated Financial Highlights for 3Q of FY 2019

    Consolidated Financial Highlights for 3Q of FY 2019

  4. Slide 4: Consolidated Financial Highlights (1) - Change in Accounting Policy

    Consolidated Financial Highlights （1） Change in Accounting Policy From this fiscal year, the accounting policies related to the recording of billings at certain subsidiaries has changed. Please be aware that figures for the same period of the previous fiscal year and the previous fiscal year-end hav

  5. Slide 5: Consolidated Financial Highlights (2)

    Consolidated Financial Highlights （2） Due to revenue growth even in difficult market environment, profit increased in the third quarter. The figures in parentheses below represent amount and percentage increases/decreases that exclude the impact from the sale of Mercari, Inc.’s shares (hereinafter,

  6. Slide 6: Consolidated Financial Highlights (3)

    Consolidated Financial Highlights （3） FY2018 FY2019 YoY （Millions of yen） (9M Result) (9M Result) change （％） Billings 1,054,449 1,068,214 13,765 1.3% Revenue 234,313 239,589 5,275 2.3% （Gross margin） (22.2%) (22.4%) (+0.2%) SG&A expenses 185,020 201,895 16,875 9.1% Operating income 49,293 37,693 (11

  7. Slide 7: Consolidated Financial Highlights (4) Excluding impact from Mercari

    Consolidated Financial Highlights （4） 【Excluding impact from Mercari】 Operating income Revenue (Millions of Yen) (Millions of yen) FY2018 FY2019 YoY 60,000 （Millions of yen） (9M Result) (9M Result) change （％） 240,000 Billings 1,041,556 1,063,218 21,662 2.1% Revenue 221,511 234,699 13,188 6.0% 50,000

  8. Slide 8: Results by Region (1)

    Results by Region（1） FY2018 FY2019 YoY comparisons (Millions of yen) 3Q(9Months) 3Q(9Months) Change （%) Billings 937,533 958,429 20,896 2.2% Revenue 190,722 192,480 1,757 0.9% Japan (Gross margin) (20.3%) (20.1%) (-0.3%) Operating Income 59,052 49,961 (9,091) -15.4% (Operating margin) (31.0%) (26.0%

  9. Slide 9: Results by Region (2)

    Results by Region（2） 【Excluding impact from Mercari】 FY2018 FY2019 YoY comparisons (Millions of yen) 3Q(9Months) 3Q(9Months) Change （%) Billings 924,640 953,433 28,792 3.1% Japan Revenue 177,920 187,591 9,670 5.4% • Revenue increased by 5.4% due to top-line growth in services such as Internet media.

  10. Slide 10: Billings by Service Area (1)

    Billings by Service Area（1） FY2018 FY2019 YoY comparisons Share Share (Millions of yen) ３Ｑ(９Months) ３Ｑ(９Months) Change （%) Newspapers 33,408 3.9% 31,600 3.6% (1,808) -5.4% Magazines 13,615 1.6% 12,677 1.4% (938) -6.9% Radio 10,192 1.2% 10,295 1.2% 104 1.0% Television 323,437 37.5% 313,300 35.6% (10,

  11. Slide 11: Billings by Industry (1)

    Billings by Industry（1） FY2018 FY2019 YoY comparisons Share Share (Millions of yen) ３Ｑ(９Months) ３Ｑ(９Months) Change （%) Information/Communications 94,975 12.0% 96,752 12.1% 1,777 1.9% Automobiles/Related products 91,241 11.5% 97,578 12.2% 6,337 6.9% Beverages/Cigarettes/Luxury foods 89,995 11.4% 83,4

  12. Slide 12: Billings by Industry (2)

    Billings by Industry（2） Year-on-year changes for 3 Q(9Months) o f FY2019 (Millions of yen) Government/Organizations Automobiles/Related products M aj or C hang es ( Larg est Inc reases) Transportation/Leisure 3Q of Y o Y comparisons FY'19 (%) Change Energy/Material/Machinery Government/Organizations

  13. Slide 13: Changes in SG&A Expenses (1)

    Changes in SG&A Expenses（1） FY2018 FY2019 YoY comparisons (Millions of yen) 3Ｑ（9Months) 3Ｑ（9Months) Change （%) Personnel costs 123,245 134,719 11,473 9.3% Other Ｅxpenses (total) 61,774 67,176 5,402 8.7% Rent 12,293 13,261 968 7.9% Depreciation and 3,657 3,829 171 4.7% Ａmortization Amortization of 4,

  14. Slide 14: Changes in SG&A Expenses (2)

    Changes in SG&A Expenses（2） (billions of yen) Change Factors in SG&A Expenses ↑1.5 ↑6.5 ↑2.6 ↑1.3 ↑1.8 201.8 ↑3.2 185.0 175 FY2018 Changes in Changes in Retirement Amortiza tion Personnel costs Others FY2019 consolidation consolidation benefit costs of goodwill (excl. fa ctors (excl. fa ctors (Perso

  15. Slide 15: Non-Operating Items and Extraordinary Gains and Losses

    Non-Operating Items and Extraordinary Gains and Losses FY2018 FY2019 YoY comparisons (Millions of yen) ３Ｑ(9Months) ３Ｑ(9Months) Change (%) Non-operating income 3,236 2,942 (294) -9.1% Non-operating expenses 521 832 311 59.6% Total 2,714 2,109 (605) -22.3% *Net interest income (interest received – FY'

  16. Slide 16: Consolidated Balance Sheets

    Consolidated Balance Sheets Mar. 31, 2019 Dec. 30, 2019 Comparisons Dec.30, 2018 Share Share (Millions of yen) Amount Amount Change (%) Amount Share Current assets 610,251 67.7% 544,473 65.4% (65,777) -10.8% 539,486 66.3% Fixed assets 291,751 32.3% 287,614 34.6% (4,136) -1.4% 273,933 33.7% Total ass

  17. Slide 17: Consolidated Statements of Cash Flow

    Consolidated Statements of Cash Flow FY2018 FY2019 Y o Y comparisons (Millions of yen) 3Q(9Months) 3Q(9Months) Change Cash flow from operating activities 17,748 (3,669) (21,417) Cash flow from investing activities (18,631) 893 19,525 Cash flow from financing activities (25,344) (17,261) 8,083 Effect

  18. Slide 18: Highlights of Operating Results at Major Subsidiaries

    Highlights of Operating Results at Major Subsidiaries FY2018 FY2019 YoY comparisons ◎ Billings rose 2.3%, or ¥16.1 billion. 3Q 3Q Billings increased in Automobiles/Related products and Change (%) Government/Organizations (Millions of yen) （9Months） （9Months） Billings decreased in Beverages/Cigarette

  19. Slide 19: Consolidated Business Outlook for Fiscal 2019

    Consolidated Business Outlook for Fiscal 2019

  20. Slide 20: Business Outlook for Fiscal 2019 (1)

    Consolidated Business Outlook for Fiscal 2019（1） Full year forecasts and dividends ・ There is no change in full-year forecast and dividend plan at this moment. As of Feb.10, 2020 FY2018 FY2019 YoY （Millions of yen） (Full Year Result) (Full Year Forecasts) change （％） Billings 1,444,524 1,505,000 60,4

  21. Slide 21: Business Outlook for Fiscal 2019 (2)

    Consolidated Business Outlook for Fiscal 2019（2） 【Reference】Full-year forecast – cumulative 3Q performance = 4Q forecast (difference) As of Feb.10, 2020 FY2019 YoY FY2019 YoY FY2019 YoY FY2019 YoY FY2019 YoY (4Q (Full Year （Millions of yen） (1Q Result) change （％） (2Q Result) change （％） (3Q Result) c

  22. Slide 22: Business Outlook for Fiscal 2019 (3)

    Consolidated Business Outlook for Fiscal 2019（3） 【Excluding impact from Mercari】 FY2019 YoY FY2019 YoY FY2019 YoY FY2019 YoY FY2019 YoY (4Q (Full Year （Millions of yen） (1Q Result) change （％） (2Q Result) change （％） (3Q Result) change （％） change （％） change （％） Calculated) Forecasts) Billings 330,345

  23. Slide 23: Supplementary materials

    Supplementary materials

  24. Slide 24: Consolidated Financial Highlights (5)

    Consolidated Financial Highlights （5） 【Excluding impact from Mercari】 FY2019 YoY FY2019 YoY FY2019 YoY FY2019 YoY （Millions of yen） (1Q Result) change （％） (2Q Result) change （％） (3Q Result) change （％） (9M Result) change （％） Billings 330,345 18,650 6.0% 348,550 9,529 2.8% 384,322 (6,517) -1.7% 1,063,

  25. Slide 25: Results by Region (3)

    Results by Region（3） 【Excluding impact from Mercari】 FY2019 YoY comparisons FY2019 YoY comparisons FY2019 YoY comparisons FY2019 YoY comparisons (Millions of yen) 1Q Change （%) 2Q Change （%) 3Q Change （%) 3Q(9Months) Change （%) Billings 296,780 11,584 4.1% 312,955 15,287 5.1% 343,698 1,920 0.6% 953,

  26. Slide 26: Billings by Service Area (2)

    Billings by Service Area（2） FY2019 YoY comparisons FY2019 YoY comparisons FY2019 YoY comparisons FY2019 YoY comparisons (Millions of yen) 1Q Change （%) 2Q Change （%) 3Q Change （%) ３Ｑ(９Months) Change （%) Newspapers 10,003 (600) -5.7% 10,950 283 2.7% 10,647 (1,491) -12.3% 31,600 (1,808) -5.4% Magazine

  27. Slide 27: Billings by Industry (3)

    Billings by Industry（3） Quarterly YoY Changes (1) Top 3 Largest Total (±) Changes by Industry（Millions of Yen） Government/Organizations Automobiles/Related products Transportation/Leisure +8,000 +8,000 +8,000 +6,000 +6,000 +6,000 +3,913 +3,620 +4,000 +4,000 +4,000 +2,477 +2,356 +1,961 +1,556 +2,000

  28. Slide 28: Billings by Industry (4)

    Billings by Industry（4） Quarterly YoY Changes(2) Other Major Industries（Millions of Yen） Information/Communications Cosmetics/Toiletries Foodstuffs +8,000 +8,000 +8,000 +6,000 +5,377 +6,000 +6,000 +3,764 +4,000 +3,147 +4,000 +4,000 +2,274 +1,738 +1,740 +2,000 +2,000 +2,000 +530 +491 +169 0 0 0 -103

  29. Slide 29: Billings by Industry (5)

    Billings by Industry（5） FY2019 YoY comparisons FY2019 YoY comparisons FY2019 YoY comparisons FY2019 YoY comparisons (Millions of yen) 1Q Change （%) 2Q Change （%) ３Ｑ Change （%) ３Ｑ(９Months) of Change （%) Information/Communications 28,578 3,147 12.4% 30,687 1,738 6.0% 37,487 (3,108) -7.7% 96,752 1,777

  30. Slide 30: Tsutawaru Font note

    Text is 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.

Hakuhodo DY Holdings — Q3 FY2019 Earnings Presentation on 6ix