Hakuhodo Dy Holdings Incorporated · TSE:2433

Hakuhodo Dy — 3Q FY2018 Earnings Presentation

29 slides from Hakuhodo Dy's earnings presentation, Feb 8, 2019

  1. Slide 1: Consolidated Financial Highlights 3Q of FY2018

    Consolidated Financial Highlights 3Q of Fiscal Year Ending March 31, 2019 (3Q of FY 2018) 2019.2.8

  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 2018

    Consolidated Financial Highlights for 3Q of FY 2018

  4. Slide 4: Financial Highlights (1)

    Consolidated Financial Highlights （1） Operating income in cumulative 3Q of ¥49.2 billion due in part to the sale of operational investment securities The figures in parentheses below represent amount and percentage increases/decreases that exclude the impact from the sale of Mercari, Inc.’s shares (

  5. Slide 5: Financial Highlights (2)

    Consolidated Financial Highlights （2） (Millions of yen) 3Q(9Months) of YoY comparisons FY2017 FY2018 Change (%) Billings 958,518 1,054,455 95,937 10.0% Revenue 193,624 234,239 40,615 21.0% (Gross margin) (20.2%) (22.2%) (+2.0%) 10.0% SG&A expenses 157,252 185,020 27,767 17.7% Operating income 36,371

  6. Slide 6: Financial Highlights (3)

    Consolidated Financial Highlights （3） 【Consolidated Financial Highlights】 【Impact from Mercari】 【Excluding impact from Mercari】 3Q(9Months) of 3Q(9Months) of 3Q(9Months) of YoY comparisons YoY comparisons YoY comparisons FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 (Millions of yen) Change (%) Change (

  7. Slide 7: Financial Highlights (4)

    Consolidated Financial Highlights （4） (Millions of yen) 1Q of 2Q of 3Q of YoY comparisons YoY comparisons YoY comparisons FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 Change (%) Change (%) Change (%) Billings 301,164 323,870 22,706 7.5% 309,780 339,504 29,724 9.6% 347,572 391,080 43,507 12.5% Revenue 5

  8. Slide 8: Results by Region (1)

    Results by Region （1） 3Q (9months) of YoY comparisons FY2017 FY2018 ■ Japan: Impact from Mercari ■ (Millions of yen) Change （%) Billings 901,572 937,539 35,967 4.0% ・Please refer to page 9 for results that exclude Revenue 171,186 190,648 19,461 11.4% the impact from Mercari. Japan (Gross margin) (19

  9. Slide 9: Results by Region (2)

    Results by Region （2） 1Q of 2Q of 3Q of YoY comparisons YoY comparisons YoY comparisons FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 (Millions of yen) Change （%) Change （%) Change （%) Billings 282,676 297,370 14,693 5.2% 289,637 298,151 8,514 2.9% 329,257 342,017 12,759 3.9% Revenue 51,281 66,222 14,94

  10. Slide 10: Results by Region (3)

    Results by Region （3） Results by Region (Japan) 【Excluding impact from Mercari】 1Q of 2Q of 3Q of 3Q (9months) of YoY comparisons YoY comparisons YoY comparisons YoY comparisons FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 (Millions of yen) Change （%) Change （%) Change （%) Change （%) Bill

  11. Slide 11: Billings by Industry (New compiling method) (1)

    Billings by Industry (New compiling method)（1） (Millions of yen) ３Ｑ(９Months) of YoY comparisons FY2017 Share FY2018 Share Change （%) Automobiles/Related products 101,519 12.9% 91,241 11.5% (10,277) -10.1% Information/Communications 90,870 11.5% 94,975 12.0% 4,105 4.5% Beverages/Cigarettes/Luxury foo

  12. Slide 12: Billings by Industry (New compiling method) (2)

    Billings by Industry (New compiling method) （2） Year-on-year changes for 3Q(9Months) of FY2018 (Millions of yen) Restaurant/Services Information/Communications Major Changes (Largest Increases) 3Q of Y o Y comparisons Finance/Insurance FY'18 (%) Change Beverages/Cigarettes/Luxury foods Restaurant/Se

  13. Slide 13: Billings by Industry (New compiling method) (3)

    Billings by Industry (New compiling method) （3） ns of yen) (Millions of yen) １Ｑ of YoY comparisons 2Q of YoY comparisons ３Ｑ of YoY comparisons FY2018 Change （%) FY2018 Change （%) FY2018 Change （%) Automobiles/Related products 26,890 (212) -0.8% 29,726 (6,356) -17.6% 34,625 (3,709) -9.7% Information/

  14. Slide 14: Billings by Industry (New compiling method) (4)

    Billings by Industry (New compiling method) （4） Quarterly YoY Changes (1) Top 3 Largest Total(±) Changes by Industry（Millions of Yen） Restaurant/Services Information/Communications Finance/Insurance +9,000 +7,939 +9,000 +9,000 +7,000 +7,000 +7,000 +5,000 +5,000 +3,764 +4,105 +5,000 +4,043 +3,686 +3,

  15. Slide 15: Billings by Industry (New compiling method) (5)

    Billings by Industry (New compiling method) （5） Quarterly YoY Changes(2) Other Major Industries（Millions of Yen） Beverages/Cigarettes/Luxury foods Cosmetics/Toiletries Foodstuffs +9,000 +9,000 +9,000 +7,000 +7,000 +7,000 +5,000 +5,000 +5,000 +3,000 +2,183 +2,442 +3,000 +2,166 +3,000 +1,740 +326 +530

  16. Slide 16: Billings by Industry (New compiling method) (6)

    Billings by Industry (New compiling method) （6） 【Reference: Results for FY2017 under the New Compilation Method】 (Millions of yen) １Ｑ of YoY comparisons 2Q of YoY comparisons ３Ｑ of YoY comparisons ４Ｑ of YoY comparisons Total of YoY comparisons FY2017 Change （%) FY2017 Change （%) FY2017 Change （%) FY

  17. Slide 17: Billings by Service Area (1)

    Billings by Service Area (1) (Millions of yen) ３Ｑ(９Months) of ３Ｑ(９Months) of YoY comparisons FY2017 FY2018 Amount Share Amount Share Change （%) Newspapers 39,098 4.6% 33,408 3.9% (5,690) -14.6% Magazines 15,763 1.9% 13,615 1.6% (2,147) -13.6% Radio 9,835 1.2% 10,192 1.2% 357 3.6% Television 330,081

  18. Slide 18: Billings by Service Area (2)

    Billings by Service Area (2) (Millions of yen) １Ｑ of 2Ｑ of 3Ｑ of YoY comparisons YoY comparisons YoY comparisons FY2018 FY2018 FY2018 Amount Change （%) Amount Change （%) Amount Change （%) Newspapers 10,603 (2,083) -16.4% 10,667 (1,100) -9.3% 12,138 (2,507) -17.1% Magazines 4,042 (605) -13.0% 4,560 (

  19. Slide 19: Changes in SG&A Expenses (1)

    Changes in SG&A Expenses（1） (Millions of yen) 3Ｑ（9Months) of YoY comparisons FY2017 FY2018 Change （%) Personnel costs 105,581 123,245 17,664 16.7% Other Ｅxpenses (total) 51,670 61,774 10,103 19.6% Rent 10,730 12,293 1,562 14.6% Depreciation and 2,717 3,657 940 34.6% Ａmortization Amortization of 2,69

  20. Slide 20: Changes in SG&A Expenses (2)

    Changes in SG&A Expenses（2） (billions of yen) Change Factors in SG&A Expenses ↑3.5 ↑4.8 ↑2.1 ↓0.1 ↑17.4 185.0 157.2 140 FY2017 Changes in Retirement Amortization Personnel costs Others FY2018 consolidation benefit costs of goodwill (excl. factors (excl. factors at left) at left) February 8, 2019 Con

  21. Slide 21: Changes in SG&A Expenses (3)

    Changes in SG&A Expenses（3） (Millions of yen) １Ｑ of YoY comparisons ２Ｑ of YoY comparisons 3Ｑ of YoY comparisons FY2017 FY2018 Change (%) FY2017 FY2018 Change (%) FY2017 FY2018 Change (%) Personnel costs 34,113 40,016 5,903 17.3% 35,256 41,218 5,961 16.9% 36,211 42,010 5,799 16.0% Other Ｅxpenses (tot

  22. Slide 22: Non-Operating Items and Extraordinary Gains and Losses

    Non-Operating Items and Extraordinary Gains and Losses (Millions of yen) ３Ｑ(9Months) of YoY comparisons FY2017 FY2018 Change (%) Non-operating income 2,330 3,236 905 38.9% Non-operating expenses 389 521 132 34.1% Total 1,941 2,714 773 39.8% *Net interest income (interest received – FY'17 +36 million

  23. Slide 23: Consolidated Balance Sheets

    Consolidated Balance Sheets (Millions of yen) (Millions of yen) Mar. 31, 2018 Dec.31, 2018 Comparisons Dec.31, 2017 Amount Share Amount Share Change (%) Amount Share Current assets 538,905 67.5% 541,412 66.4% 2,507 0.5% 506,138 68.3% Fixed assets 259,230 32.5% 273,933 33.6% 14,703 5.7% 234,372 31.7%

  24. Slide 24: Consolidated Statements of Cash Flow

    Consolidated Statements of Cash Flow (Millions of yen) 3Q(9Months) of Y o Y comparisons FY2017 FY2018 Change Cash flow from operating activities 1,259 17,748 16,489 Cash flow from investing activities (6,631) (18,631) (12,000) Cash flow from financing activities (14,015) (25,344) (11,328) Effect of

  25. Slide 25: Highlights of Operating Results at Major Subsidiaries

    Highlights of Operating Results at Major Subsidiaries (Millions of yen) ３Ｑ(9Months) of YoY comparisons ◎Billings rose ¥34.3 billion, or 5.0%, year on year. ・Client industries with billings increases: FY2017 FY2018 Change (%) Restaurant/Services, Information/Communications ・Client industries with bil

  26. Slide 26: Business Outlook for Fiscal 2018

    Consolidated Business Outlook for Fiscal 2018

  27. Slide 27: Business Outlook for Fiscal 2018 (1)

    Consolidated Business Outlook for Fiscal 2018（1） ◎ In light of the financial results for the cumulative 3Q and our current business conditions, we have reviewed the consolidated forecast for the full year. ◎ As we have been making progress in line with the forecasts we announced in November 2018, we

  28. Slide 28: Business Outlook for Fiscal 2018 (2)

    Consolidated Business Outlook for Fiscal 2018（2） 【Reference】Full-year forecast – cumulative 3Q performance = 4Q forecast (difference) As of Feb.8, 2019 （Millions of yen） 1Q 2Q 3Q 4Q Full Year FY2018 YoY FY2018 YoY FY2018 YoY FY2018 YoY FY2018 YoY (Result) change （％） (Result) change （％） (Result) chan

  29. Slide 29: 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 — 3Q FY2018 Earnings Presentation on 6ix