Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — Q2 FY2020 Earnings Presentation
37 slides from Hakuhodo Dy's earnings presentation, Nov 16, 2020
Slide 1: Consolidated Financial Highlights Fiscal Year Ending September 30, 2020 (Q2 FY 2020)
Consolidated Financial Highlights Fiscal Year Ending September 30, 2020 (Q2 FY 2020) November 16, 2020 Hakuhodo DY Holdings, Inc.
Slide 2: Consolidated Results Highlights of Q2 FY 2020
Consolidated Results Highlights of Q2 FY 2020
Slide 3: Q2 FY2020 Summary
Q2 FY2020 Summary Billings and profits fell sharply due to the spread of the new coronavirus infection. Demand is recovering after bottoming out in Q1. - With the spread of the new coronavirus, demand for advertising fell sharply and domestic billings dropped by more than 20%. - Demand is steadily r
Slide 4: Q2 FY2020 Income Statements Highlight
Q2 FY2020 Income Statements Highlight ▶ See p.17 for details. （Millions of JPY） Actual YOY Differ Billings 534,065 -148,761 -21.8% Operating Income 1,800 -18,441 -91.1% Ordinary Income 3,712 -17,895 -82.8% Net Income Attributable to Owners of Parent -3,433 -23,196 -117.4% - Billings decreased by 21.
Slide 5: Q2 FY2020 Results (Excluding Investment Business)
Q2 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 528,360 -150,046 -22.1% （millions of JPY） Revenue 124,125 -25,748 -17.2% +5.5% +7.1% +5.1% +1.6% Gross Margin 23.5% +1
Slide 6: Q2 FY2020 Operating Income before Amortizing of Goodwill
Q2 FY2020 Operating Income before Amortizing of Goodwill Consolidation（Excluding Investment Business） Japan - Top line progressing moderately toward recovery after bottoming out in the first quarter - Restored profitability in the second quarter owing to successful implementation of the emergency co
Slide 7: Results by Region (Japan: Excluding Investment Business)
Results by Region (Japan: Excluding Investment Business) Q2 FY2020 ▶ See p.19-20 for details. (Millions of JPY) Actual YOY Revenue & Operating Income before amortization of goodwill by quarter Billings 463,390 -145,855 -23.9% （millions of JPY） Revenue 95,902 -23,155 -19.4% +7.6% +6.0% +2.3% +1.7% Gr
Slide 8: Results by Region (Overseas)
Results by Region (Overseas) Q2 FY2020 ▶ See p.19-20 for details. (Millions of JPY) Actual YOY Revenue & Operating Income before amortization of goodwill by quarter Billings 67,771 -5,788 -7.9% （Millions of JPY） Revenue 29,462 -2,653 -8.3% +16.6% Gross Margin 43.5% -0.2pt +9.7% +3.1% +2.0% -2.2% SGA
Slide 9: Billings by Service Category
Billings by Service Category ▶ See p.21 for details. Q2 FY2020 YTD Composition (Millions of JPY) Actual YOY Ratio Newspapers 14,617 -6,403 -30.5% 3.2% Magazines 4,613 -3,676 -44.3% 1.0% Radio 5,595 -1,835 -24.7% 1.2% Television 159,440 -49,076 -23.5% 35.0% Trad-Media Service Subtotal 184,266 -60,992
Slide 10: Billings by Clients' Industry
Billings by Clients’ Industry See p.22-23 for details. Q2 FY2020 YTD Millions of JPY Pharmaceuticals/Medical supplies Classified advertising/Other Publishing Precision Machinery/Office supplies Education/Medical services/Religion Household products Home electric appliances/AV equipment Games/Sportin
Slide 11: Selling, General & Administrative Expenses
Selling, General & Administrative Expenses Q2 FY2020 YTD （Millions of JPY） Actual YOY Major Change Factors in SGA (JPY billion) Personnel 87,343 -1,769 -2.0% FY19 Q2 SG&A 133,781 Rent 9,271 +561 +6.4% Change in scope of consolidation +2,085 Depreciations 2,938 +440 +17.6% -430 Decrease of amortizati
Slide 12: Other Income & Extra-ordinary Items
Other Income & Extra-ordinary Items Q2 FY2020 YTD Other Income （Millions of JPY） Actual YOY Non-operating Income 2,540 +591 Interest Income 153 -30 Dividend Income 1,670 +297 Equity Method Earnings 129 +125 Non-operating Expenses 628 +46 Interest Expenses 223 -36 FOREX 105 -77 Extra-ordinary Items （
Slide 13: Guidance for FY2020
Guidance for FY2020
Slide 14: Guidance for FY2020
Guidance for FY2020 See p.27 for details. ASSUMPTION - The domestic economy and advertising market are expected to recover gradually from the impact of the COVID- 19 pandemic (with a third wave of the virus not likely to occur). - Top-line growth in the second half is projected to slightly exceed th
Slide 15: Dividends for FY2020
Dividends for FY2020 The Company’s basic policy on shareholder returns is to steadily and continually provide dividends to shareholders. In determining the dividend amount, we comprehensively take into account the circumstances regarding demand for capital, the Company’s business performance, the ma
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 Q2 FY2020 YTD（6-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 534,065 -148,761 -21.8% 261,023 -21.6% 273,041 -22.0% Revenue 129,695 -24,328 -15.8% 64,650 -10.8% 65,044 -20.3% Gross Margin 24.
Slide 19: Results Excluding Investment Business
Results Excluding Investment Business Q2 FY2020 YTD （6-Month） by Quarter（3-Month） Results Excluding Investment Business （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 528,360 -150,046 -22.1% 255,573 -22.6% 272,786 -21.6% Revenue 124,125 -25,748 -17.2% 59,258 -15.3% 64,867 -18.9% Gross Margin 23
Slide 20: Results by Region
Results by Region Q2 FY2020 YTD （Millions of JPY） Actual YOY Japan Billings 469,095 -144,570 -23.6% Revenue 101,471 -21,735 -17.6% SG&A 89,031 -5,024 -5.3% Operating Income 12,439 -16,710 -57.3% International Billings 67,771 -5,788 -7.9% Revenue 29,462 -2,653 -8.3% SG&A 32,814 -971 -2.9% Operating I
Slide 21: Results by Region (excluding investment business)
Results by Region (excluding investment business) Q2 FY2020 YTD （6 -Month） by Quarter（3-Month） Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Billings 463,390 -145,855 -23.9% 218,766 -26.3% 244,623 -21.7% Revenue 95,902 -23,155 -19.4% 43,796 -20.1% 52,105 -18.9%
Slide 22: Billings by Service Category
Billings by Service Category Q2 FY2020 YTD （6 -Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Newspapers 14,617 -6,403 -30.5% 6,382 -37.4% 8,234 -23.9% Magazines 4,613 -3,676 -44.3% 2,391 -38.8% 2,221 -49.3% Radio 5,595 -1,835 -24.7% 2,727 -26.9% 2,867 -22.5% Television 15
Slide 23: Billings by Clients' Industry
Billings by Clients’ Industry Q2 FY2020 YTD （Millions of JPY） Actual YOY Composition Beverages/Cigarettes/Luxury foods 50,902 -9,871 -16.2% 13.0% Information/Communications 47,490 -12,125 -20.3% 12.1% Automobiles/Related products 44,220 -19,951 -31.1% 11.3% Foodstuffs 32,022 -8,457 -20.9% 8.1% Cosme
Slide 24: Billings by Clients' Industry (by Quarter)
Billings by Clients’ Industry (by Quarter) Major Industries Left：FY19, Right：FY20 (Millions of JPY) 23
Slide 25: Balance Sheets
Balance Sheets （Millions of JPY） End of Sep 2020 Change * Composition Current Assets 461,197 -133,882 60.6% Cash & Deposits 135,019 -31,557 Accounts Recievable 242,067 -115,034 Non-current Assets 299,806 +34,999 39.4% Tangible Assets 33,637 -492 Intangible Assets 64,043 +11,660 Goodwill 38,052 +10,1
Slide 26: Cash Flow Statements
Cash Flow Statements Q2 FY2020 （Millions of JPY） Actual YOY Cash Flows from Operating Activities -21,217 -2,374 Cash Flows from Investing Activities -12,504 -16,746 Purchase of property, plant and equipment -1,509 +1,356 Proceeds from sales of property, plant and equipment 21 +15 Purchase of intangi
Slide 27: Results of Major Agencies
Results of Major Agencies Q2 FY2020 （Millions of JPY） Actual YOY Hakuhodo (Consolidated) Billings 354,155 -111,865 -24.0% Ordinary Income 353 -14,226 -97.6% Net Income Attributable to Owners of Parent -1,690 -9,388 -122.0% Daiko (Consolidated) Billings 64,567 -13,048 -16.8% Ordinary Income 131 -909
Slide 28: Guidance
Guidance FY2020 （Millions of JPY） Forecast YOY H1 Actual YOY H2 Forecast YOY Billings 1,247,000 -219,249 -15.0% 534,065 -148,761 -21.8% 712,934 -70,487 -9.0% Operating Income 24,000 -31,131 -56.5% 1,800 -18,441 -91.1% 22,199 -12,690 -36.4% Ordinary Income 27,000 -31,100 -53.5% 3,712 -17,895 -82.8% 2
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. IREP: IREP Co., Ltd
Slide 30: Medium-Term Business Plan (FY2019-FY2023: 5-year plan)
Medium-Term Business Plan (FY2019-FY2023: 5-year plan) With sei-katsu-sha insight as our cornerstone, the Hakuhodo DY Group will combine its creativity, Core Medium- integrative capabilities, and data and technology utilization skills to play a leading role in evolving Term Strategy companies’ marke
Slide 31: Overview of Progress in 1H of FY2020
Overview of Progress in 1H of FY2020 ■ Revenue excluding investment projects and after adjustments grew steadily in FY2019, the first year of the current Medium-Term Business Plan(MTBP). However, revenue declined below the previous year’s level in the first half of FY2020, as the impact from the COV
Slide 32: Main measures
Key strengthening measures centered around the three fundamentals for growth Strengthening of structures and response capabilities centered around the MTBP’s three fundamentals for growth. Main measures Establish a leading position in the broader digital domain Strengthen response capabilities for
Slide 33: Establish a leading position in the broader digital domain
Establish a leading position in the broader digital domain ■ Billings from Internet media saw a double-digit decline, falling 11.1% year on year, due to the significant impact of the COVID-19 pandemic. ■ To address the acceleration of the shift to complete digitalization, we focused on not only enha
Slide 34: Strengthen Response Capabilities for Borderless Corporate Activities
Strengthen Response Capabilities for Borderless Corporate Activities ■ Revenue from overseas business declined 8.3% year on year on an overall basis. Although Asia returned similar levels of revenue to last year, due in part to mergers and acquisitions, there was a significant drop in North America.
Slide 35: Accelerate Innovation through External Collaborations
Accelerate Innovation through External Collaborations ■ Increased efforts toward the creation of new businesses based on sei-katsu-sha insight and creativity while collaborating with a diverse range of players from different industries ■ Focused efforts on establishing a foundation for strengthening
Slide 36: Numerical Targets of the Medium-Term Business Plan
Numerical Targets of the Medium-Term Business Plan Recognition of the Business Environment Surrounding the Hakuhodo DY Group We are seeing an acceleration in “the shift to complete digitalization,” the basis of the strategies in this plan, due to the COVID-19 pandemic. We will therefore remain com
Slide 37: HakuhodoDY holdings
HakuhodoDY holdings
Hakuhodo DY Holdings — Q2 FY2020 Earnings Presentation on 6ix