Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — H1 FY2024 Earnings Presentation
43 slides from Hakuhodo Dy's earnings presentation, Nov 13, 2024
Slide 1: Consolidated Financial Highlights First-half FY2024 (Apr.–Sep., 2024)
Consolidated Financial Highlights First-half FY2024 (Apr.–Sep., 2024) November 13, 2024 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL
Slide 2: Highlights of Consolidated Results for H1 FY2024
Highlights of Consolidated Results for H1 FY2024 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL
Slide 3: H1 FY2024 Consolidated Results
H1 FY2024 Consolidated Results • Billings increased by 5.4 percentage points YoY, and revenue also increased by 7.1 percentage points YoY. • Operating income increased by ¥7.5 billion to ¥8.8 billion. Ordinary income increased by ¥6.2 billion to ¥9.7 billion. • As a result of recording an extraordin
Slide 4: H1 FY2024 Consolidated Results (After Adjustments) 1
H1 FY2024 Consolidated Results (After Adjustments) 1 • Billings increased by 5.8 percentage points YoY. Gross profit increased by 6.7 percentage points YoY. Gross margin improved by 0.2pt. • SG&A expenses increased by 0.5 percentage points YoY. Operating income increased by ¥10.3 billion YoY to ¥5.6
Slide 5: H1 FY2024 Consolidated Results (After Adjustments) 2
H1 FY2024 Consolidated Results (After Adjustments) 2 ⚫ The operating income before amortization of GW for H1 increased by ¥10.9 billion YoY. In particular, the growth in gross profit in Q2 (an increase of ¥8.9 billion YoY) contributed to this profit increase. • Q1: Gross profit increased by ¥2.4 bil
Slide 6: H1 FY2024 Consolidated Results (After Adjustments) 3
H1 FY2024 Consolidated Results (After Adjustments) 3 ⚫ The operating income before amortization of GW for H1 was supported by an increase in domestic gross profit, particularly in Q2 (an increase of ¥8.0 billion YoY). • Japan/Corporate: Q1 saw a ¥0.9 billion YoY increase in domestic gross profit, al
Slide 7: Guidance for FY2024
Guidance for FY2024 © Hakuhodo DY Holdings Inc. All rights reserved.
Slide 8: Guidance for FY2024
Guidance for FY2024 ⚫ The guidance for the full fiscal year ending March 2025 remains unchanged from the previous forecast. Guidance for FY2024 （Millions （Millionsof of JPY） JPY） Forecast YoY Billings Billings 1,675,000 +6.1% Revenue Revenue 1,000,000 +5.6% OperatingIncome Operating Income 36,000 +5
Slide 9: Shareholder Returns for FY2024
Shareholder Returns for FY2024 © Hakuhodo DY Holdings Inc. All rights reserved.
Slide 10: Shareholder Returns
Shareholder Returns ⚫ Dividend forecast for FY2024 (ending March 2025) • The Board of Directors resolved today (November 13, 2024) to set the interim dividend at ¥16 per share. • The forecast for the annual dividend remains unchanged at ¥32 per share, including the interim dividend. © Hakuhodo DY Ho
Slide 11: Medium-Term Business Plan Enhancement Measures for Business Structure Reform
Medium-Term Business Plan Enhancement Measures for Business Structure Reform Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved.
Slide 12: Medium-Term Business Plan: Business structure reform
Medium-Term Business Plan: Business structure reform ⚫ One of the objectives of our Medium-Term Business Plan, announced in June 2024, is “restructuring of marketing business.” FY2023 FY2026 FY2031 Up until now: Medium-Term Business Plan period: 3 years Focused on marketing business (advertising in
Slide 13: Changes in marketing business
Changes in marketing business ⚫ A full-funnel solution leveraging data and technology is an essential prerequisite for marketing business ⚫ Full-funnel Sei-katsu-sha Data-Driven marketing will become mainstream in the future ＜ Marketing communication functions ＞ ＜ Marketing execution functions ＞ Cus
Slide 14: Establishing a seamless full-funnel marketing infrastructure
Establishing a seamless full-funnel marketing infrastructure ⚫ Integrating Hakuhodo and Hakuhodo DY Media Partners to consolidate and enhance the core functions of full-funnel planning within Hakuhodo, with a targeted implementation by April 2025 ⚫ Along with a seamless response to the full-funnel m
Slide 15: Future vision: Specialized marketing service companies
Future vision ⚫ New Hakuhodo aims to be a shared full-funnel marketing infrastructure for group companies ⚫ To strengthen competitiveness and improve efficiency, we will also consider the reorganization of production domain and specialized marketing service companies ⚫ Group companies will leverage
Slide 16: Appendix
Appendix © Hakuhodo DY Holdings Inc. All rights reserved.
Slide 17: Medium-Term Business Plan (FY2024–FY2026)
Medium-Term Business Plan (FY2024–FY2026) ⚫ Our goal: Creativity platform ✓ With sei-katsu-sha-centered creativity as our edge, the Hakuhodo DY Group aims to be a group that creates the future by Medium-term connecting sei-katsu-sha, organizations and society to generate new relationship value. stra
Slide 18: Medium-Term Business Plan: Monitoring benchmarks
Medium-Term Business Plan: Monitoring benchmarks Gross profit CAGR*2 Monitoring benchmark Note Restructuring of marketing business Domestic vs. total gross profit marketing business +7.0% Approx. 4% 66.4% Market average CAGR (Survey of Selected Service Domestic Above market digital marketing +7.6% a
Slide 19: Business topics
Business topics ⚫ We are enhancing our business infrastructure by establishing a new organization specialized in research and development to help client companies implement our Group Policy, Sei-katsu-sha insight, and introducing a new enhanced model of our integrated marketing platform. Establishme
Slide 20: Business topics
Business topics ⚫ Group companies have launched a series of new AI-powered solutions and services. Partnership with Tools for Humanity, Group companies developing a key player in the World Network project new AI-powered solutions and services Hakuhodo 博報堂 Hakuhodo / 大広 / Daiko Advertising / Hakuhodo
Slide 21: Business topics
Business topics ⚫ We are enhancing the incubation business across diverse areas ranging from the development of an entity to undertake public-private co- creation for growth driven by solutions to social issues, to the launch of a platform business to promote various operations in the well- being in
Slide 22: Human-centered sustainable management
Development of sustainability policy and materiality ⚫ We developed a sustainability policy and materiality to realize our Global Purpose, taking into consideration the Medium-Term Business Plan, the Hakuhodo DY Group’s business and cultures, risks and opportunities within the Group, and our impact
Slide 23: Case examples
Case examples Launch of Nature Positive Studio Launch of RESILIENT LIFE PROJECT Hakuhodo/Hakuhodo DY Media Partners Hakuhodo Supports nature-positive actions and business creation. Builds integrated Aims to disseminate “resilient life,” a sei-katsu-sha-centered lifestyle characterized solutions arou
Slide 24: Interim Income Statements
Interim Income Statements Japanese GAAP-basis Interim Income Statements for H1 FY2024 YTD（6-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 735,393 +37,539 +5.4% 352,513 -0.5% 382,880 +11.5% Revenue 427,853 +28,295 +7.1% 200,361 -0.5% 227,492 +14.8% Gross Profit 183,54
Slide 25: Results After Adjustments
Results After Adjustments H1 FY2024 YTD（6-Month） by Quarter（3-Month） Results After Adjustments （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Billings 732,127 40,410 +5.8% 349,246 +0.2% 382,880 +11.6% Revenue 424,587 31,166 +7.9% 197,095 +0.7% 227,492 +15.0% Gross Profit 180,290 11,304 +6.7% 85,798 +2.8
Slide 26: Results by Region
Results by Region H1 FY2024 （Millions of JPY） Actual YOY Japan Billings 625,227 +36,952 +6.3% Revenue 317,686 +27,728 +9.6% Gross Profit 133,459 +6,054 +4.8% SG&A Expenses 103,989 -2,389 -2.2% Operating Income 29,469 +8,444 +40.2% Overseas Billings 115,022 +187 +0.2% Revenue 115,022 +187 +0.2% Gross
Slide 27: Results by Region (YTD, by Quarter)
Results by Region (YTD, by Quarter) H1 FY2024 YTD（6-Month） by Quarter（3-Month） Japan (After Adjustments) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Billings 621,960 +39,823 +6.8% 297,997 +0.7% 323,963 +13.2% Gross Profit 130,203 +8,902 +7.3% 61,256 +1.4% 68,946 +13.2% Gross Margin 20.9% +0.1pt 2
Slide 28: Results by Region (Japan: After Adjustments)
Results by Region (Japan: After Adjustments) H1 FY2024 (Millions of JPY) Actual YOY Gross Profit & Operating Income before Amortization of Goodwill by Quarter Billings 621,960 +39,823 +6.8% （Millions of JPY） Revenue 314,420 +30,599 +10.8% Gross Profit 130,203 +8,902 +7.3% Gross Margin 20.9% +0.1pt S
Slide 29: Results by Region (Overseas)
Results by Region (Overseas) H1 FY2024 (Millions of JPY) Actual YOY Gross Profit & Operating Income before Billings 115,022 +187 +0.2% Amortization of Goodwill by Quarter （Millions of JPY） Revenue 115,022 +187 +0.2% Gross Profit 53,030 +2,920 +5.8% Gross Margin 46.1% +2.5pt SG&A Expenses 58,674 +2,0
Slide 30: Japan: Billings by Type of Service
Japan: Billings by Type of Service H1 FY2024 (Millions of JPY) Actual YOY Composition Newspaper 11,613 -2,435 -17.3% 1.9% Magazine 2,980 -586 -16.4% 0.5% Radio 4,637 -392 -7.8% 0.8% Television 180,368 +3,276 +1.9% 29.3% Trad-Media Service Subtotal 199,600 -137 -0.1% 32.4% Internet Media 176,493 +12,
Slide 31: Billings by Type of Service (YTD, by Quarter)
Billings by Type of Service (YTD, by Quarter) H1 FY2024 YTD（6-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Newspaper 11,613 -2,435 -17.3% 5,536 -22.4% 6,076 -12.2% Magazine 2,980 -586 -16.4% 1,318 -22.0% 1,662 -11.4% Radio 4,637 -392 -7.8% 2,365 -6.3% 2,272 -9.3% Televis
Slide 32: Japan: Billings by Client Industry
Japan: Billings by Client Industry H1 FY2024 （Millions of JPY） Actual YOY Composition Information/Communications 66,054 +9,041 +15.9% 12.8% Beverages/Cigarettes/Luxury foods 54,602 +2,801 +5.4% 10.5% Automobiles/Related products 43,830 -85 -0.2% 8.5% Foodstuffs 38,005 +3,830 +11.2% 7.3% Restaurants/
Slide 33: Japan: Billings by Client Industry
Japan: Billings by Client Industry ⚫ Positive Industries Government/Organizations H1 FY2024 Actual ¥ 28.2bil YoY +¥19.5bil (+224.0%) Information/Communications ¥ 66.0bil YoY +¥ 9.0bil (+15.9%) ⚫ Negative Industries Household products H1 FY2024 Actual ¥ 8.4bil YoY -¥ 1.6bil (-16.6％) Medical services/
Slide 34: Japan: Billings by Client Industry (by Quarter)
Japan: Billings by Client Industry (by Quarter) 1 FY2022 FY2023 FY2024 (Millions of JPY) © Hakuhodo DY Holdings Inc. All rights reserved. 34
Slide 35: Japan: Billings by Client Industry (by Quarter)
Japan: Billings by Client Industry (by Quarter) 2 FY2022 FY2023 FY2024 (Millions of JPY) © Hakuhodo DY Holdings Inc. All rights reserved. 35
Slide 36: Japan: Billings by Client Industry (by Quarter)
Japan: Billings by Client Industry (by Quarter) 3 FY2022 FY2023 FY2024 (Millions of JPY) © Hakuhodo DY Holdings Inc. All rights reserved. 36
Slide 37: Japan: Billings by Client Industry (by Quarter)
Japan: Billings by Client Industry (by Quarter) 4 FY2022 FY2023 FY2024 (Millions of JPY) © Hakuhodo DY Holdings Inc. All rights reserved. 37
Slide 38: Selling, General & Administrative Expenses
Selling, General & Administrative Expenses H1 FY2024 （Millions of JPY） Actual YOY Major Change Factors in SG&A Expenses (Millions of JPY) Personnel 117,313 +652 +0.6% H1 FY2023 SG&A Expenses 173,744 Rent 10,314 -126 -1.2% Change in scope of consolidation +402 Depreciations 5,190 +562 +12.2% Amortiza
Slide 39: Other Income/Loss & Extraordinary Items
Other Income/Loss & Extraordinary Items H1 FY2024 Other Income/Loss （Millions of JPY） Actual YOY Non-operating Income 4,072 +57 Interest Income 399 +135 Dividend Income 1,376 -19 Foreign Exchange Gains - -1,299 Investment Partership Income 1,257 +1,257 Non-operating Expenses 3,150 +1,351 Interest Ex
Slide 40: Balance Sheet
Balance Sheet （Millions of JPY） As of Sep.30, 2024 Change * Composition Current Assets 589,504 -100,884 63.0% Cash & Deposits 158,643 -25,883 Notes and Accounts Receivable 331,542 -70,616 Non-current Assets 346,821 2,195 37.0% Tangible Assets 59,189 -1,778 Intangible Assets 106,801 2,319 Goodwill 65
Slide 41: Cash Flow Statements
Cash Flow Statements H1 FY2024 （Millions of JPY） Actual YOY Cash Flows from Operating Activities 1,476 +25,063 Cash Flows from Investing Activities -13,462 -1,997 Purchase of Property, Plant and Equipment -1,600 +1,580 Purchase of Intangible Assets -5,022 +324 Purchase of Investment Securities -1,77
Slide 42: 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 policie
Slide 43: Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL
Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL
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