Hakuhodo Dy Holdings Incorporated · TSE:2433

Hakuhodo Dy — Q1 FY2019 Earnings Presentation

27 slides from Hakuhodo Dy's earnings presentation, Aug 9, 2019

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

    Consolidated Financial Highlights １Q of Fiscal Year Ending March 31, 2020 (1Q of FY 2019) 2018.8.9

  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 1Q of FY 2019

    Consolidated Financial Highlights for 1Q of FY 2019

  4. Slide 4: Consolidated Financial Highlights (1)

    Consolidated Financial Highlights （1） Change in Accounting Method From the first quarter, the accounting methods 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） Billings increased while profit declined due to proactive investment carried out under the new Medium-Term Business Plan The figures in parentheses below represent amount and percentage increases/decreases that exclude the impact from the sale of Mercari, Inc.’s

  6. Slide 6: Consolidated Financial Highlights (3)

    Consolidated Financial Highlights （3） 1Q 2Q FY2018 FY2019 YoY （Millions of yen） (Result) (Result) change （％） Billings 324,588 332,973 8,385 2.6% Revenue 79,277 72,438 (6,839) -8.6% （Gross margin） (24.4%) (21.8%) (-2.7%) SG&A expenses 59,223 65,482 6,259 10.6% Operating income 20,054 6,955 (13,099) -

  7. Slide 7: Consolidated Financial Highlights (4)

    Consolidated Financial Highlights （4） 【Excluding impact from Mercari】 Operating income Revenue (Millions of Yen) (Millions of yen) 22,000 70,000 1Q 20,000 68,000 FY2018 FY2019 YoY （Millions of yen） (Result) (Result) change （％） 18,000 66,000 Billings 311,695 330,345 18,650 6.0% 16,000 64,000 Revenue

  8. Slide 8: Results by Region (1)

    Results by Region（1） 1Q of YoY comparisons FY2018 FY2019 (Millions of yen) Change （%) Billings 298,088 299,408 1,319 0.4% Revenue 66,341 57,294 (9,047) -13.6% Japan (Gross margin) (22.3%) (19.1%) (-3.1%) Operating Income 23,611 10,605 (13,005) -55.1% (Operating margin) (35.6%) (18.5%) (-17.1%) Billi

  9. Slide 9: Results by Region (2)

    Results by Region（2） 【Excluding impact from Mercari】 1Q of YoY comparisons FY2018 FY2019 (Millions of yen) Change （%) Billings 285,195 296,780 11,584 4.1% Japan Revenue 53,538 54,752 1,213 2.3% • Revenue increased 2.3% due to growth in the top-line from Internet media, etc. (Gross margin) (18.8%) (1

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

    Billings by Service Area（1） １Ｑ of １Ｑ of YoY comparisons FY2018 FY2019 Amount Share Amount Share Change （%) (Millions of yen) Newspapers 10,603 3.9% 10,003 3.6% (600) -5.7% Magazines 4,042 1.5% 3,677 1.3% (365) -9.0% Radio 3,235 1.2% 3,499 1.3% 264 8.2% Television 103,840 38.1% 104,433 37.5% 593 0.6%

  11. Slide 11: Billings by Industry (1)

    Billings by Industry（1） (Millions of yen) 1Q of 1Q of YoY comparisons FY'19 FY2018 FY2019 Change （%) Share Information/Communications 25,431 28,578 3,147 12.4% 11.3% Automobiles/Related products 26,890 28,051 1,161 4.3% 11.1% Beverages/Cigarettes/Luxury foods 34,747 30,345 (4,401) -12.7% 12.0% 化粧品・ト

  12. Slide 12: Billings by Industry (2)

    Billings by Industry（2） Year-on-year changes for 1Q of FY2019 (Millions of yen) Information/Communications Majo r Changes ( L argest Increases) 1Q of Y o Y comparisons Government/Organizations FY'19 (%) Change Energy/Material/Machinery Information/Communications 28.5 +12.4% 3.1 Automobiles/Related p

  13. Slide 13: Billings by Industry (3)

    Billings by Industry（3） Quarterly YoY Changes (1) Top 3 Largest Total (±) Changes by Industry（Millions of Yen） Information/Communications Government/Organizations Energy/Material/Machinery +7,000 +7,000 +7,000 +5,377 +5,000 +5,000 +5,000 +3,764 +3,147 +3,000 +3,000 +3,000 +2,563 +2,274 +1,961 +1,575

  14. Slide 14: Billings by Industry (4)

    Billings by Industry（4） Quarterly YoY Changes(2) Other Major Industries（Millions of Yen） Automobiles/Related products Cosmetics/Toiletries Foodstuffs +7,000 +7,000 +7,000 +5,000 +5,000 +5,000 +3,000 +3,000 +3,000 +1,740 +1,161 +1,000 +1,000 +530 +1,000 +491 -1,000 -212 -1,000 -103 -1,000 -295 -793 -

  15. Slide 15: Changes in SG&A Expenses (1)

    Changes in SG&A Expenses（1） (Millions of yen) １Ｑ of YoY comparisons FY2018 FY2019 Change (%) Personnel costs 40,016 43,982 3,966 9.9% Other Ｅxpenses (total) 19,206 21,500 2,293 11.9% Rent 3,990 4,347 357 9.0% Depreciation and 1,149 1,401 252 22.0% Ａmortization Amortization of 1,165 1,856 690 59.3% g

  16. Slide 16: Changes in SG&A Expenses (2)

    Changes in SG&A Expenses（2） (billions of yen) Change Factors in SG&A Expenses ↑1.2 ↑1.8 ↑0.7 ↑0.7 ↑0.4 ↑1.4 65.4 59.2 50 FY2018 Changes in Changes in Retirement Amortiza tion Personnel costs Others FY2019 consolidation consolidation benefit costs of goodwill (excl. factors (excl. factors (Personel)

  17. Slide 17: Non-Operating Items and Extraordinary Gains and Losses

    Non-Operating Items and Extraordinary Gains and Losses (Millions of yen) １Ｑ of YoY comparisons FY2018 FY2019 Change (%) Non-operating income 1,674 1,454 (220) -13.1% Non-operating expenses 92 527 434 469.1% Total 1,582 927 (654) -41.4% *Net interest income (interest received – FY'18 +11 million FY'1

  18. Slide 18: Consolidated Balance Sheets

    Consolidated Balance Sheets (Millions of yen) (Millions of yen) Mar. 31, 2019 Jun. 30, 2019 Comparisons Jun.30, 2018 Amount Share Amount Share Change (%) Amount Share Current assets 610,251 67.7% 519,578 63.6% (90,672) -14.9% 536,863 65.0% Fixed assets 291,751 32.3% 297,539 36.4% 5,788 2.0% 288,760

  19. Slide 19: Consolidated Statements of Cash Flow

    Consolidated Statements of Cash Flow (Millions of yen) 1Q of Y o Y comparisons FY2018 FY2019 Change Cash flow from operating activities 2,866 (13,686) (16,553) Cash flow from investing activities (8,403) (5,174) 3,228 Cash flow from financing activities (6,329) (7,877) (1,548) Effect of exchange rat

  20. Slide 20: Highlights of Operating Results at Major Subsidiaries

    Highlights of Operating Results at Major Subsidiaries (Millions of yen) 1Ｑ of YoY comparisons ◎ Billings rose 5.2%, or ¥11.2 billion. Billings increased in Information/Communications and Finance/Insurance FY2018 FY2019 Change (%) Billings decreased in Beverages/Cigarettes/Luxury foods and Real estat

  21. Slide 21: Business Outlook for Fiscal 2019

    Consolidated Business Outlook for Fiscal 2019

  22. Slide 22: Consolidated Business Outlook for Fiscal 2019 (1)

    Consolidated Business Outlook for Fiscal 2019（1） Revisions were made to the first-half forecasts, while the full-year forecasts remain unchanged. ◎ Reasons for revising first-half forecasts: While our view on the full-year forecasts remains unchanged, we revised our first-half forecasts in considera

  23. Slide 23: Consolidated Business Outlook for Fiscal 2019 (2)

    Consolidated Business Outlook for Fiscal 2019（2） Differences with Quarterly Forecasts Announced on May 14, 2019 【Consolidated Financial Highlights】 As of Aug. 9, 2019 1Q 2Q 1H Difference between new forecasts and FY2019 YoY FY2019 YoY FY2019 YoY forecasts announced on （Millions of yen） (Result) chan

  24. Slide 24: Consolidated Business Outlook for Fiscal 2019 (3)

    Consolidated Business Outlook for Fiscal 2019（3） 【Consolidated Financial Highlights】 As of Aug.9, 2019 （Millions of yen） 1H 2H Full Year FY2018 FY2019 YoY FY2018 FY2019 YoY FY2018 FY2019 YoY （Millions of yen） (Result) (Forecasts) change （％） (Result) (Forecasts) change （％） (Result) (Forecasts) change

  25. Slide 25: Consolidated Business Outlook for Fiscal 2019 (4)

    Consolidated Business Outlook for Fiscal 2019（4） 【Excluding impact from Mercari】 As of Aug.9, 2019 （単位：百万円） 1H 2H Full Year FY2018 FY2019 YoY FY2018 FY2019 YoY FY2018 FY2019 YoY (Result) (Forecasts) change （％） (Result) (Forecasts) change （％） (Result) (Forecasts) change （％） Billings 650,716 677,972 2

  26. Slide 26: Consolidated Business Outlook for Fiscal 2019 (5)

    Consolidated Business Outlook for Fiscal 2019（5） Projecting Gradual Profit Growth in the First Year of the New Medium-Term Business Plan 【As of May 14, 2019】 【Overview of consolidated forecasts excluding the impact from Mercari】 ◎ Macro environment: Domestic advertising market to grow roughly 1.5% ・

  27. Slide 27: Note on Tsutawaru Font

    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 — Q1 FY2019 Earnings Presentation on 6ix