Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — FY2020 Earnings Presentation
40 slides from Hakuhodo Dy's earnings presentation, May 14, 2021
Slide 1: Consolidated Financial Highlights Fiscal Year Ending March 31, 2021 (FY 2020)
Consolidated Financial Highlights Fiscal Year Ending March 31, 2021 (FY 2020) May 14, 2021 Hakuhodo DY Holdings, Inc.
Slide 2: Consolidated Results Highlights of FY 2020
Consolidated Results Highlights of FY 2020
Slide 3: FY2020 Summary
FY2020 Summary Profits up by top line recovery after the second half year. - On a year-to-date basis, billings decreased 11.5% due to the impact of spread of COVID-19. - Gross profit margin improved by 1.5 points due to successful efforts to improve profitability. Gross profit decreased by 5.5% year
Slide 4: FY2020 Income Statements Highlight
FY2020 Income Statements Highlight ▶ See p.17 for details. （Millions of JPY） Actual YOY Difference from Forecast * Billings 1,297,947 -168,301 -11.5% +37,947 +3.0% Operating Income 45,033 -10,098 -18.3% +15,033 +50.1% Ordinary Income 49,594 -8,506 -14.6% +16,594 +50.3% Net Income Attributable to Own
Slide 5: FY2020 Results (Excluding Investment Business)
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 1,291,822 -166,796 -11.4% （millions of JPY） Gross Profit 307,350 -17,963 -5.5% Gross Margin 23.8% +1.5pt SGA 268,116 -9,2
Slide 6: FY2020 Operating income Quarterly Results (Excluding Investment Business)
FY2020 Operating income Quarterly Results (Excluding Investment Business) （00 millions of JPY） Q1 Q2 Q3 Q4 Operating income -49 12 168 260 YoY ｰ93 ｰ104 +6 +104 売上総利益・販管費の前年同期比 +92 ｰ12 ｰ14 ｰ20 ｰ12 ｰ46 ｰ106 ｰ150 Q1 Q2 Q3 Q4 Gross profit SGA - In the Q1 and Q2, top line decreased due to the impact of C
Slide 7: Results by Region (Japan: Excluding Investment Business)
Results by Region (Japan: Excluding Investment Business) FY2020 ▶ See p.19-20 for details. (Millions of JPY) Actual YOY Revenue & Operating Income before amortization of goodwill by quarter Billings 1,143,103 -158,287 -12.2% （millions of JPY） Gross Profit 246,539 -14,332 -5.5% Gross Margin 21.6% +1.
Slide 8: Results by Region (Overseas)
Results by Region (Overseas) FY2020 ▶ See p.19-20 for details. (Millions of JPY) Actual YOY Revenue & Operating Income before amortization of goodwill by quarter Billings 154,048 -11,212 -6.8% （Millions of JPY） Gross Profit 63,601 -3,970 -5.9% Gross Margin 41.3% +0.4pt SGA 67,449 -1,589 -2.3% Operat
Slide 9: Billings by Service Category
Billings by Service Category ▶ See p.21 for details. FY2020 YTD Composition (Millions of JPY) Actual YOY Q4 YOY Ratio Newspapers 37,623 -6,748 -15.2% 3.3% -4.7% Magazines 10,265 -7,583 -42.5% 0.9% -44.1% Radio 11,982 -2,895 -19.5% 1.1% -14.7% Television 381,672 -45,795 -10.7% 33.9% +5.4% Trad-Media
Slide 10: Billings by Clients’ Industry
Billings by Clients’ Industry See p.22-26 for details. FY2020 YTD • 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 Govern
Slide 11: Selling, General & Administrative Expenses
Selling, General & Administrative Expenses FY2020 YTD （Millions of JPY） Major Change Factors in SGA (Millions of JPY) Actual YOY Personnel 183,656 -107 -0.1% FY20 SG&A 277,367 Rent 18,279 +520 +2.9% Change in scope of consolidation +5,862 Depreciations 6,002 +619 +11.5% Amortization of goodwill +293
Slide 12: Other Income & Extra-ordinary Items
Other Income & Extra-ordinary Items FY2020 YTD Other Income （Millions of JPY） Actual YOY Non-operating Income 5,633 +1,276 Interest Income 301 -65 Dividend Income 2,633 +394 Investment Partership Income 517 +507 Equity Method Earnings 670 -163 Non-operating Expenses 1,072 -315 Interest Expenses 483
Slide 13: Guidance for FY2021
Guidance for FY2021
Slide 14: Guidance for FY2021
Guidance for FY2021 See p.27 for details. ASSUMPTION Based on the this assumption that the spread of corona infection will gradually come to an end and that even if there is a temporary increase in infection, the impact on the economy will be limited. The Consolidated Forecast numbers are estimated
Slide 15: Dividends
Dividends - Dividends for fiscal 2020 (including a mid-term dividend of ¥15 per share) full- year dividend of ¥30 per share. - Dividends for fiscal 2021: expected same as fiscal 2020. *Based on getting approval at the General Meeting of Shareholders （@JPY/share） 31 30 30 30 30 29 28 28 27 26 26 25 2
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 FY2020 YTD（12-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,297,947 -168,301 -11.5% 261,023 -21.6% 273,041 -22.0% 348,972 -9.4% 414,909 +4.2% Gross Profit 313,217 -19,281 -5.8
Slide 19: Results Excluding Investment Business
Results Excluding Investment Business FY2020 YTD （12-Month） by Quarter（3-Month） Results Excluding Investment Business （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,291,822 -166,796 -11.4% 255,573 -22.6% 272,786 -21.6% 348,716 -9.2% 414,745 +4.7% Gross Profit 307,350 -17,963 -5.
Slide 20: Results by Region
Results by Region FY2020 YTD （Millions of JPY） Actual YOY Japan Billings 1,149,228 -159,793 -12.2% Gross Profit 252,406 -15,650 -5.8% SG&A 187,980 -7,777 -4.0% Operating Income 64,426 -7,873 -10.9% International Billings 154,048 -11,212 -6.8% Gross Profit 63,601 -3,970 -5.9% SG&A 67,449 -1,589 -2.3%
Slide 21: Results by Region (excluding investment business)
Results by Region (excluding investment business) FY2020 YTD （12 -Month） by Quarter（3-Month） Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 対前年同期比 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,143,103 -158,287 -12.2% 218,766 +0 -26.3% 244,623 -21.7% 314,705 -8.4% 365,007 +4.7% Gross
Slide 22: Billings by Service Category
Billings by Service Category FY2020 YTD （12-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Newspapers 37,623 -6,748 -15.2% 6,382 -37.4% 8,234 -23.9% 11,480 +2.0% 11,525 -4.7% Magazines 10,265 -7,583 -42.5% 2,391 -38.8% 2,221 -49.3% 3,205 -38.2% 2,446 -44.1% R
Slide 23: Billings by Clients’ Industry
Billings by Clients’ Industry FY2020 YTD （Millions of JPY） Actual YOY Composition Information/Communications 123,519 -15,452 -11.1% 12.5% Beverages/Cigarettes/Luxury foods 112,992 -7,258 -6.0% 11.5% Automobiles/Related products 111,120 -24,874 -18.3% 11.3% Foodstuffs 73,445 -5,913 -7.5% 7.4% Cosmeti
Slide 24: Billings by Clients’ Industry (by Quarter) 1
Billings by Clients’ Industry (by Quarter) 1 Left：FY19、Right：FY20 (Millions of JPY) Information/Communications Automobiles/Related products Beverages/Cigarettes/Luxury foods +8,000 +8,000 +8,000 +4,040 +3,318 +3,651 +3,000 +1,615 +2,099 +1,976 +3,000 +3,000 +1,012 +737 +513 -2,000 -501 -2,000 -2,000
Slide 25: Billings by Clients’ Industry (by Quarter) 2
Billings by Clients’ Industry (by Quarter) 2 Left：FY19、Right：FY20 (Millions of JPY) Pharmaceuticals/Medical supplies Restaurant/Services Distribution/Retailing +8,000 +8,000 +8,000 +1,854 +1,479 +3,000 +1,840 +3,000 +836 +118 +3,000 +468 +529 +72 +161 -2,000 -257 -161 -2,000 -2,000 -1,441 -1,201 -1,
Slide 26: Billings by Clients’ Industry (by Quarter) 3
Billings by Clients’ Industry (by Quarter) 3 Left：FY19、Right：FY20 (Millions of JPY) Household products Energy/Material/Machinery Games/Sporting goods/Hobby supplies +8,000 +8,000 +8,000 +3,510 +3,000 +3,000 +1,551+1,426 +3,000 +1,466 +249 +681 +365 +341 +36 +111 -2,000 -756 -2,000 -2,000 -708 -411 -
Slide 27: Billings by Clients’ Industry (by Quarter) 4
Billings by Clients’ Industry (by Quarter) 4 Left：FY19、Right：FY20 (Millions of JPY) Education/Medical services/Religion Precision machinery/Office supplies Classified advertising/Other +8,000 +8,000 +8,000 +3,000 +3,000 +136 +219 +433 +908 +3,000 +304 +559 +73 -2,000 -30 -425 -164 -220 -1,278 -117 -
Slide 28: Balance Sheets
Balance Sheets （Millions of JPY） End of Dec 2020 Change * Composition Current Assets 626,731 +31,651 66.6% Cash & Deposits 179,312 +12,735 Accounts Recievable 360,723 +3,622 Non-current Assets 314,372 +49,564 33.4% Tangible Assets 34,915 +786 Intangible Assets 69,051 +16,667 Goodwill 41,801 +13,896
Slide 29: Cash Flow Statements
Cash Flow Statements FY2020 （Millions of JPY） Actual YOY Cash Flows from Operating Activities 36,212 +8,846 Cash Flows from Investing Activities -9,831 -13,204 Purchase of property, plant and equipment -4,764 +1,271 Proceeds from sales of property, plant and equipment 115 -13,039 Purchase of intangi
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
Slide 31: Important indicators
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 32: Overview of Profit/Loss Situation in FY2020
Overview of Profit/Loss Situation in FY2020 ■ While operating income excluding investment projects, after adjustments and before amortization of goodwill, was stable in the first year of the MTBP (FY2019), a year in which we actively made strategic investments, it declined year on year in the plan’s
Slide 33: Marketing DX and Media DX
Marketing DX and Media DX ■With complete digitalization increasing opportunities for sei-katsu-sha and companies to connect directly, focused efforts on building structures able to respond to such direct contact points and respond to companies’ marketing DX needs. ■ In the media domain, with a view
Slide 34: Integration of Marketing DX and Media DX
Integration of Marketing DX and Media DX ■ Establishment of HAKUHODO DX_UNITED, a strategic organization that implements digital transformation (DX) for clients and partner companies in an integrated manner through a two-pronged approach that incorporates marketing DX and media DX. (H/MP/DAC) ■ Impl
Slide 35: Overview of Progress toward Other Indicators
Overview of Progress toward Other Indicators ■ Revenue after adjustments held at a 5.5% decrease amid a double-digit decline in the domestic advertising market, the Company’s main area of operation. ■ Operating margin after adjustments and before amortization of goodwill rose above the 15% level due
Slide 36: 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 37: Establish a Leading Position in the Broader Digital Domain
Establish a Leading Position in the Broader Digital Domain ■ Internet media billings declined year-on-year in the first half due to the COVID-19 pandemic, but rapidly recovered in the second half, resulting in a year-on-year increase in the second half. ■ In addition to the development of services f
Slide 38: Strengthen Response Capabilities for Borderless Corporate Activities
Strengthen Response Capabilities for Borderless Corporate Activities ■ Revenue from overseas businesses saw a double-digit decline in the second quarter due to the COVID-19 pandemic, but recovered and increased year on year by the fourth quarter owing to the positive impact of M&A. ■ Continued to en
Slide 39: Accelerate Innovation through External Collaborations
Accelerate Innovation through External Collaborations ■ Stepped up creativity-based collaborations with external companies and efforts to generate innovation. ■ Continued to invest in start-up companies that are anticipated to grow amid and after the COVID-19 pandemic, further strengthening external
Slide 40: HakuhodoDY holdings
HakuhodoDY holdings