Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — 1H FY2022 Earnings Presentation
42 slides from Hakuhodo Dy's earnings presentation, Nov 11, 2022
Slide 1: Consolidated Financial Highlights FY2022 First-half
Consolidated Financial Highlights FY2022 First-half (April-Sep., 2022) November 11, 2022 Hakuhodo DY Holdings, Inc.
Slide 2: Consolidated Results Highlights of 1H FY2022
Consolidated Results Highlights of 1H FY 2022
Slide 3: 1H FY2022 Summary
1H FY2022 Summary Top line growth outperformed the domestic advertising market. SG&A expenses increased as planned due to strategic investments, resulting in increase in billings and decrease in profits. - The domestic advertising market was not strong against economic uncertainty. The billings incr
Slide 4: 1H FY2022 Income Statements Highlight
1H FY2022 Income Statements Highlight （Millions of JPY） Actual YOY Billings 719,646 +58,272 +8.8% Revenue 419,382 +48,479 +13.1% Operating Income 20,525 -7,724 -27.3% Ordinary Income 24,006 -5,891 -19.7% Net Income Attributable to Owners of Parent 11,719 -2,837 -19.5% - Billings increased by 8.8% Yo
Slide 5: 1H FY2022 Results (Excluding Investment Business)
1H FY2022 Results (Excluding Investment Business) (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization Billings 715,611 +59,402 +9.1% of goodwill by quarter Revenue 415,346 +49,608 +13.6% Gross Profit 173,368 +11,685 +7.2% Gross Margin 24.2% -0.4pt SGA 156,616 +18,292 +13
Slide 6: Results by Region (Japan: Excluding Investment Business)
Results by Region (Japan: Excluding Investment Business) 1H FY2022 (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter （millions of JPY） Billings 611,069 +35,025 +6.1% Revenue 310,805 +25,232 +8.8% Gross Profit 129,978 +3,860 +3.1% Gross Margin 21.
Slide 7: Results by Region (Overseas)
Results by Region (Overseas) 1H FY2022 (Millions of JPY) Gross profit & Operating Income before amortization Actual YOY of goodwill by quarter （Millions of JPY） Billings 108,833 +25,476 +30.6% Revenue 108,833 +25,476 +30.6% Gross Profit 46,359 +9,148 +24.6% Gross Margin 42.6% -2.0pt SGA 50,483 +11,0
Slide 8: Billings by Service Category
Billings by Service Category 1H FY2022 Composition (Millions of JPY) Actual YOY Ratio Newspapers 14,373 -3,050 -17.5% 2.4% Magazines 3,625 -409 -10.2% 0.6% Radio 5,632 -134 -2.3% 0.9% Television 178,149 -5,161 -2.8% 29.3% Trad-Media Service Subtotal 201,781 -8,755 -4.2% 33.2% Internet Media 156,351
Slide 9: Billings by Clients' Industry
Billings by Clients’ Industry See p.23-26 for details. 1H 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. - Main Positive Industries Governm
Slide 10: Selling, General & Administrative Expenses
Selling, General & Administrative Expenses 1H FY2022 （Millions of JPY） Actual YOY Major Change Factors in SG&A (Millions of JPY) Personnel 103,908 +8,067 +8.4% Q2 FY21 SG&A 138,380 Rent 9,807 +573 +6.2% Change in scope of consolidation +2,769 Depreciations 3,939 +607 +18.2% Amortization of goodwill
Slide 11: Other Income & Extra-ordinary Items
Other Income & Extra-ordinary Items 1H FY2022 Other Income/Loss （Millions of JPY） Actual YOY Non-operating Income 4,308 +1,953 Interest Income 188 +39 Dividend Income 1,317 +136 FOREX 1,341 +1,341 Investment Partership Income 471 +142 Non-operating Expenses 827 +120 Interest Expenses 210 -39 Equity
Slide 12: Guidance for FY2022
Guidance for FY2022
Slide 13: Guidance for FY2022
Guidance for FY2022 Forecasts for the fiscal year ending March 31, 2023 unchanged. Performance forecast for FY2022 （Millions of JPY） Forecast YOY Billings 1,630,000 +111,078 +7.3% Operating Income 51,000 -20,642 -28.8% Ordinary Income 53,000 -22,740 -30.0% Net Income Attributable to Owners of Parent
Slide 14: Shareholders Return
Shareholders Return
Slide 15: Shareholders Return
Shareholders Return Dividend forecast The annual dividend will be ¥32 per share (including an interim dividend of ¥16 per share), unchanged from the previous forecast. Acquisition of own shares (share buyback) On November 10, 2022, we announced the acquisition of our own shares up to ¥10 billion. We
Slide 16: 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 17: Supplements
Supplements
Slide 18: Interim Income Statements
Interim Income Statements Japanese GAAP-basis Interim Income Statements for 1H FY2022 YTD（6-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 719,646 +58,272 +8.8% 349,106 +6.8% 370,540 +10.8% Revenue 419,382 +48,479 +13.1% 195,636 +13.5% 223,746 +12.7% Gross Profit 177,
Slide 19: Results Excluding Investment Business
Results Excluding Investment Business 1H FY2022 YTD（6-Month） by Quarter（3-Month） Results Excluding Investment Business （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 715,611 59,402 +9.1% 345,848 +6.8% 369,763 +11.2% Revenue 415,346 49,608 +13.6% 192,377 +13.8% 222,969 +13.4% Gross Profit 173,36
Slide 20: Results by Region
Results by Region 1H FY2022 （Millions of JPY） Actual YOY Japan Billings 615,105 +33,896 +5.8% Revenue 314,841 +24,103 +8.3% Gross Profit 133,793 +2,728 +2.1% SG&A 98,603 +5,533 +5.9% Operating Income 35,189 -2,804 -7.4% Overseas Billings 108,833 +25,476 +30.6% Revenue 108,833 +25,476 +30.6% Gross Pr
Slide 21: Results by Region (YTD, by Quarter)
Results by Region(YTD, by Quarter) 1H FY2022 YTD（6-Month） by Quarter（3-Month） Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Billings 611,069 +35,025 +6.1% 298,466 +4.8% 312,603 +7.4% Gross Profit 129,978 +3,860 +3.1% 61,305 +5.2% 68,673 +1.2% Gross Margin 21.3%
Slide 22: Billings by Service Category
Billings by Service Category 1H FY2022 YTD（6-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Newspapers 14,373 -3,050 -17.5% 7,275 -20.9% 7,098 -13.7% Magazines 3,625 -409 -10.2% 1,553 -18.6% 2,071 -2.6% Radio 5,632 -134 -2.3% 2,866 -0.7% 2,766 -4.0% Television 178,149 -5,1
Slide 23: Billings by Clients' Industry
Billings by Clients’ Industry 1H FY2022 （Millions of JPY） Actual YOY Composition Information/Communications 66,234 +1,773 +2.8% 13.1% Beverages/Cigarettes/Luxury foods 58,892 +532 +0.9% 11.6% Automobiles/Related products 46,916 -1,161 -2.4% 9.3% Foodstuffs 38,605 +2,082 +5.7% 7.6% Cosmetics/Toiletri
Slide 24: Billings by Clients' Industry (YoY by Quarter) 1
Billings by Clients’ Industry (YoY by Quarter) 1 FY2020 FY2021 FY2022 (Millions of JPY) 23
Slide 25: Billings by Clients' Industry (YoY by Quarter) 2
Billings by Clients’ Industry (YoY by Quarter) 2 (Millions of JPY) 24
Slide 26: Billings by Clients' Industry (YoY by Quarter) 3
Billings by Clients’ Industry (YoY by Quarter) 3 (Millions of JPY) 25
Slide 27: Billings by Clients' Industry (YoY by Quarter) 4
Billings by Clients’ Industry (YoY by Quarter) 4 (Millions of JPY) 26
Slide 28: Balance Sheets
Balance Sheets （Millions of JPY） End of Sep. 2022 Change * Composition Current Assets 648,160 -106,693 66.5% Cash & Deposits 205,385 21,401 Accounts Recievable 316,550 -121,854 Non-current Assets 327,229 29,066 33.5% Tangible Assets 39,688 2,564 Intangible Assets 103,614 31,297 Goodwill 72,387 27,28
Slide 29: Cash Flow Statements
Cash Flow Statements 1H FY2022 （Millions of JPY） Actual YOY Cash Flows from Operating Activities 47,616 +15,858 Cash Flows from Investing Activities -18,850 -9,251 Purchase of property, plant and equipment -2,530 -487 Purchase of intangible assets -4,659 -2,450 Purchase of investment securities -3,4
Slide 30: 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 SO: SoldOut,Inc. 29
Slide 31: 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 32: Overview of Progress in the First Half of FY2022
Overview of Progress in the First Half of FY2022 ■ Gross profit after adjustments saw a double-digit increase compared with the base year due to business growth both in Japan and overseas realized by capturing recovery of advertising demand. ■ Operating income after adjustments and before amortizati
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: Transform the Services We Provide: Full-Funnel Sei-katsu-sha Data-Driven Marketing
１．Transform the Services We Provide: Implementation of Full-Funnel Sei-katsu-sha Data-Driven Marketing ■ While giving close consideration to data privacy and protection, we are actively promoting efforts to enhance our foundation of sei-katsu-sha data, which serves as the cornerstone for implementin
Slide 35: Transform the Services We Provide: Expansion of Marketing Execution Domains
1. Transform the Services We Provide: Expansion of Marketing Execution Domains ■ Gross profit in marketing execution domains, excluding COVID-19 pandemic-related business process outsourcing (BPO), has grown at an average annual growth rate of 12.2% compared with the base year, particularly in the h
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 at an annual average of 21.5% thanks to growth in our existing business and the positive boost provided by M&A. ■ We have also focused on enhancing our structure in the digital domain by expan
Slide 37: Implement Sei-katsu-sha Insight-Based Digital Transformation
1. Transform the Services We Provide: Implement Sei-katsu-sha Insight-Based Digital Transformation ■ We are undertaking a digital transformation (DX) project aimed at solving regional social issues that was adopted as a main business of the Infrastructure Development Plan for a Digital Garden City N
Slide 38: Strengthen Cross-Organizational Functions to Accelerate Transformation
2. Strengthen Cross-Organizational Functions to Accelerate Transformation ■ In August 2022, we commenced the commercial operations of Hakuhodo Technologies Inc., a company established in April 2022 as a center for technology and infrastructure development. We have also been focusing on actively recr
Slide 39: Strengthen Response Capabilities for Borderless Corporate Activities
3. Continuously Pursue Transformation Based on Existing Strategies: Strengthen Response Capabilities for Borderless Corporate Activities ■ We realized average annual growth in revenue of 25.4% in our overseas businesses, with the ratio of overseas gross profit to total gross profit increasing to 26.
Slide 40: Acceleration of Innovation through External Collaborations
３．Continuously Pursue Transformation Based on Existing Strategies: Acceleration of Innovation through External Collaborations ■ We pursued ongoing business creation with a diverse range of partners, including the developer of a public blockchain originating in Japan, and companies that provide servi
Slide 41: Strengthen Our Foundation for Sustainable Business Management
4. Strengthen Our Foundation for Sustainable Business Management ■ With the aim of realizing our sustainability goal, we further enhanced efforts to promote our health and productivity management to support the sustainable growth of our employees and the company as a whole. ■ We were selected as a c
Slide 42: HakuhodoDY holdings
HakuhodoDY holdings
Hakuhodo DY Holdings — 1H FY2022 Earnings Presentation on 6ix