Hakuhodo Dy Holdings Incorporated · TSE:2433

Hakuhodo Dy — Q1 FY2024 Earnings Presentation

27 slides from Hakuhodo Dy's earnings presentation, Aug 8, 2024

  1. Slide 1: Consolidated Financial Highlights FY2024 First Quarter (April-June, 2024)

    Consolidated Financial Highlights FY2024 First Quarter (April-June, 2024) August 8, 2024 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

  2. Slide 2: Business Topics

    Business Topics Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved.

  3. Slide 3: Business Topics

    Business Topics Human Centered AI Institute Expansion of in-game advertising Launched an exploratory learning program Announced a future vison for in the Japanese market for junior/high school students sei-katsu-sha and society （Hakuhodo DY ONE） （Hakuhodo DY holdings） （Hakuhodo DY holdings） Arrova I

  4. Slide 4: Highlights of Consolidated Results for Q1 FY2024

    Highlights of Consolidated Results for Q1 FY2024 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

  5. Slide 5: Q1 FY2024 Income Statement Highlights

    Q1 FY2024 Income Statement Highlights • Billings slightly decreased by 0.5 percentage points YoY, and revenue also decreased by 0.5 percentage points YoY. • Operating income increased by 11.6 percentage points to ¥4.2 billion. Ordinary income increased by 11.7 percentage points to ¥6.6 billion. • Ne

  6. Slide 6: Q1 FY2024 Consolidated Results (After Adjustments) 1

    Q1 FY2024 Consolidated Results (After Adjustments) 1 • Billings increased by 0.2 percentage points YoY. Gross profit increased by 2.8 percentage points YoY. Gross margin improved by 0.6pt. • SG&A expenses decreased by 0.7 percentage points YoY. Operating income increased by ¥2.9 billion YoY to ¥0.9

  7. Slide 7: Q1 FY2024 Consolidated Results (After Adjustments) 2

    Q1 FY2024 Consolidated Results (After Adjustments) 2 ⚫ Operating income in Q1 increased by ¥2.9 billion YoY . • Japan/Corporate: Billings increased by 0.7 percentage points YoY, driven by internet media and marketing/promotion domains. Gross profit improved by 1.4 percentage points due to ongoing pr

  8. Slide 8: Guidance for FY2024

    Guidance for FY2024 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved.

  9. Slide 9: Guidance for FY2024

    Guidance for FY2024 Guidance for FY2024 （Millions of JPY） Forecast YoY Billings 1,675,000 +6.1% Revenue 1,000,000 +5.6% Operating Income 36,000 +5.0% Ordinary Income 38,500 +1.8% Net Income Attributable to Owners of Parent 15,000 -39.8% Operating Income before amortization of G/W 52,000 +3.8% Gross

  10. Slide 10: Cautionary Statements Concerning Forward-looking Statements, Change in Accounting Standards & Note Concerning Audits

    Cautionary Statements Concerning Forward-looking Statements, Change in Accounting Standards & Note Concerning Audits （Cautionary Statements Concerning Forward-looking Statements） This presentation includes forward-looking statements concerning forecasts of operating results, business plans and polic

  11. Slide 11: Supplements

    Supplements Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved.

  12. Slide 12: Interim Income Statements

    Interim Income Statements Japanese GAAP-basis Interim Income Statements for Q1 FY2024 （Millions of JPY） Actual YOY Billings 352,513 -1,909 -0.5% Revenue 200,361 -1,104 -0.5% Gross Profit 89,054 -134 -0.2% Gross Margin 25.3% +0.1pt +0.0% SG&A 84,846 -573 -0.7% Operating Income 4,207 +438 +11.6% Opera

  13. Slide 13: Results After Adjustments

    Results After Adjustments Results After Adjustments Q1 FY2024 （Millions of JPY） Actual YOY Billings 349,246 604 +0.2% Revenue 197,095 1,409 +0.7% Gross Profit 85,798 2,358 +2.8% Gross Margin 24.6% +0.6pt SG&A 84,846 -573 -0.7% Operating Income 951 2,932 n/a Operating Margin 1.1% +3.5pt Amortization

  14. Slide 14: Results by Region

    Results by Region Q1 FY2024 （Millions of JPY） Actual YOY Japan Billings 301,263 -565 -0.2% Revenue 149,112 +238 +0.2% Gross Profit 64,512 -1,620 -2.5% SG&A 49,066 -3,343 -6.4% Operating Income 15,446 +1,723 +12.6% Overseas Billings 53,745 -1,411 -2.6% Revenue 53,745 -1,411 -2.6% Gross Profit 26,008

  15. Slide 15: Results by Region (Japan: After Adjustments)

    Results by Region (Japan: After Adjustments) Q1 FY2024 (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter Billings 297,997 +1,948 +0.7% （Millions of JPY） Revenue 145,845 +2,752 +1.9% Gross Profit 61,256 +872 +1.4% Gross Margin 20.6% +0.2pt SGA 49,

  16. Slide 16: Results by Region (Overseas)

    Results by Region (Overseas) Q1 FY2024 (Millions of JPY) Actual YOY Gross profit & Operating Income before amortization of goodwill by quarter Billings 53,745 -1,411 -2.6% （Millions of JPY） Revenue 53,745 -1,411 -2.6% Gross Profit 26,008 +1,934 +8.0% Gross Margin 48.4% +4.7pt SGA 29,011 +1,327 +4.8%

  17. Slide 17: Japan: Billings by Type of Service

    Japan: Billings by Type of Service Q1 FY2024 Composition (Millions of JPY) Actual YOY Ratio Newspapers 5,536 -1,594 -22.4% 1.9% Magazines 1,318 -372 -22.0% 0.4% Radio 2,365 -159 -6.3% 0.8% Television 90,485 -1,346 -1.5% 30.7% Trad-Media Service Subtotal 99,705 -3,472 -3.4% 33.8% Internet Media 90,55

  18. Slide 18: Japan: Billings by Client Industry

    Japan: Billings by Client Industry Q1 FY2024 （Millions of JPY） Actual YOY Composition Information/Communications 32,742 +2,525 +8.4% 13.4% Beverages/Cigarettes/Luxury foods 29,597 +1,952 +7.1% 12.1% Automobiles/Related products 20,808 -370 -1.7% 8.5% Foodstuffs 18,667 +1,801 +10.7% 7.6% Restaurant/S

  19. Slide 19: Japan: Billings by Client Industry

    Japan: Billings by Client Industry ⚫ Positive Industries Information/Communications Q1 FY2024 Actual ¥ 32.7bil YoY +¥ 2.5bil (+8.4%) Beverages/Cigarettes/Luxury foods ¥ 29.5bil YoY +¥ 1.9bil (+7.1%) ⚫ Negative Industries Government/Organizations Q1 FY2024 Actual ¥ 2.9bil YoY -¥ 1.7bil (-36.7％) Real

  20. Slide 20: Japan: Billings by Client Industry (by Quarter) 1

    Japan: Billings by Client Industry (by Quarter) 1 FY2022 FY2023 FY2024 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 19

  21. Slide 21: Japan: Billings by Client Industry (by Quarter) 2

    Japan: Billings by Client Industry (by Quarter) 2 FY2022 FY2023 FY2024 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 20

  22. Slide 22: Japan: Billings by Client Industry (by Quarter) 3

    Japan: Billings by Client Industry (by Quarter) 3 FY2022 FY2023 FY2024 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 21

  23. Slide 23: Japan: Billings by Client Industry (by Quarter) 4

    Japan: Billings by Client Industry (by Quarter) 4 FY2022 FY2023 FY2024 (Millions of JPY) Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. 22

  24. Slide 24: Selling, General & Administrative Expenses

    Selling, General & Administrative Expenses Q1 FY2024 （Millions of JPY） Actual YOY Major Change Factors in SG&A (Millions of JPY) Personnel 56,703 -842 -1.5% Rent 5,288 +150 +2.9% Q1 FY2023 SG&A 85,420 Change in scope of consolidation +318 Depreciations 2,641 +343 +14.9% Amortization of goodwill +378

  25. Slide 25: Other Income & Extra-ordinary Items

    Other Income & Extra-ordinary Items Q1 FY2024 Other Income/Loss （Millions of JPY） Actual YOY Non-operating Income 3,280 +68 Interest Income 196 -3 Dividend Income 1,133 -43 FOREX 1,094 +229 Investment Partership Income 339 +339 Non-operating Expenses 813 -191 Interest Expenses 312 +162 Equity Method

  26. Slide 26: Balance Sheet

    Balance Sheet （Millions of JPY） As of June 2024 Change * Composition Current Assets 603,983 -86,404 63.3% Cash & Deposits 161,939 -22,587 Accounts Recievable 324,886 -77,272 Non-current Assets 350,675 6,049 36.7% Tangible Assets 61,542 574 Intangible Assets 106,564 2,081 Goodwill 65,939 863 Investme

  27. Slide 27: Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

    Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

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