Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — Q1 FY2023 Earnings Presentation
30 slides from Hakuhodo Dy's earnings presentation, Aug 9, 2023
Slide 1: Consolidated Financial Highlights FY2023 First Quarter
Consolidated Financial Highlights FY2023 First Quarter (April-June, 2023) August 9, 2023 Hakuhodo DY Holdings, Inc.
Slide 2: Consolidated Results Highlights of Q1 FY 2023
Consolidated Results Highlights of Q1 FY 2023
Slide 3: Business topics 1: Enhancing capabilities by utilizing digital/technology
Business topics 1 Enhancing capabilities by utilizing digital/technology Promote utilization of Driving creative AI×Big data ChatGPT business innovation Scoring the pervasive of Established organization of with AI technology corporate purpose 300 employees Launched an automatic video Effective Purpo
Slide 4: Business topics 2: Acceleration of innovation through external collaborations
Business topics 2 Acceleration of innovation through external collaborations Approaches to co-create Launched JV with a company decarbonization with many companies to solve social issues Earth hacks, Inc. was established to realize a Established a company to support the " sei-katsu-sha-led" decarbon
Slide 5: Business topics 3: International advertising awards
Business topics 3 International advertising awards Won numerous international advertising awards 9 awards, including 4 gold medals 2 awards, including Future Impact Pencil 4
Slide 6: FY2023 Q1 Income Statement Highlights
FY2023 Q1 Income Statement Highlights （Millions of JPY） Actual YOY Billings 354,422 +5,315 +1.5% Revenue 201,466 +5,829 +3.0% Operating Income 3,768 -7,689 -67.1% Ordinary Income 5,975 -7,894 -56.9% Net Income Attributable to Owners of Parent -793 -5,375 -117.3% - Billings increased by 1.5% YoY, and
Slide 7: FY2023 Q1 Results (Excluding Investment Business)
FY2023 Q1 Results (Excluding Investment Business) (Millions of JPY) Actual YOY Billings 348,568 +2,720 +0.8% Revenue 195,612 +3,234 +1.7% Gross Profit 83,378 +2,172 +2.7% Gross Margin 23.9% +0.4pt SGA 85,319 +12,377 +17.0% Operating Income -1,940 -10,205 -123.5% Operating Margin -2.3% -12.5pt Amorti
Slide 8: Billings (Excluding Investment Business)
Billings (Excluding Investment Business) Consolidated ¥348.5 billion (+¥2.7 billion / +0.8% YoY) (Billions of JPY) • In Japan, Internet Media (+8.9% YoY) and Television (+0.6% YoY) performed well, but billings decreased slightly due to the impact of BPO operations and other factors. • By clients’ in
Slide 9: Gross Profit (Excluding Investment Business)
Gross Profit (Excluding Investment Business) Consolidated Gross Profit : ¥83.3 billion (+¥2.1 billion / +2.7% YoY) - Gross Margin : 23.9% (+0.4pt YoY) (Billions of JPY) • In Japan, billings decreased slightly due to the impact of BPO operations and other factors, but improved profitability led to a
Slide 10: SG&A (Excluding Investment Business)
SG&A (Excluding Investment Business) Consolidated ¥85.3 billion (+¥12.3 billion / +17.0% YoY) (Billions of JPY) Major Change Factors in SG&A (Billions of JPY) FY22 Q1 SG&A 72.9 Change in scope of consolidation +2.0 Amortization of goodwill +1.2 Impact of exchange rate fluctuations +2.5 Net increase
Slide 11: Operating Income/Loss (Excluding Investment Business)
Operating Income/Loss (Excluding Investment Business) Consolidated Operating Loss : ¥1.9 billion (-¥10.2 billion) - Operating Margin : -2.3% (-12.5pt YoY) Operating Income before Goodwill : ¥1.7 billion (-¥8.9 billion) - Operating Margin before Goodwill : 2.1% (-11.1pt YoY) Operating Income before A
Slide 12: Guidance for FY2023
Guidance for FY2023 ・ Although profits in the first quarter were lower than the previous year, progress was within the range of expectations in the guidance for FY2023 announced in May 2023. ・ Therefore, we did not revise the guidance at this time. Progress of the Guidance for FY2023 Average of last
Slide 13: 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
Slide 14: Supplements
Supplements
Slide 15: Interim Income Statements
Interim Income Statements Japanese GAAP-basis Interim Income Statements for Q1 FY2023 （Millions of JPY） Actual YOY Billings 354,422 +5,315 +1.5% Revenue 201,466 +5,829 +3.0% Gross Profit 89,189 +4,769 +5.6% Gross Margin 25.2% +1.0pt +0.0% SG&A 85,420 +12,458 +17.1% Operating Income 3,768 -7,689 -67.
Slide 16: Results Excluding Investment Business
Results Excluding Investment Business Q1 FY2023 Results Excluding Investment Business （Millions of JPY） Actual YOY Billings 348,568 2,720 +0.8% Revenue 195,612 3,234 +1.7% Gross Profit 83,378 2,172 +2.7% Gross Margin 23.9% +0.4pt SG&A 85,319 12,377 +17.0% Operating Income -1,940 -10,205 -123.5% Oper
Slide 17: Results by Region
Results by Region Q1 FY2023 （Millions of JPY） Actual YOY Japan Billings 303,644 +1,919 +0.6% Revenue 150,688 +2,433 +1.6% Gross Profit 67,947 +3,428 +5.3% SG&A 53,708 +6,850 +14.6% Operating Income 14,238 -3,421 -19.4% Overseas Billings 55,156 +5,656 +11.4% Revenue 55,156 +5,656 +11.4% Gross Profit
Slide 18: Results by Region (Japan: Excluding Investment Business)
Results by Region (Japan: Excluding Investment Business) Q1 FY2023 Gross profit & Operating Income before amortization of goodwill by quarter （Millions of JPY） YTD Actual YOY （Millions of JPY） Billings 297,790 -675 -0.2% Gross Profit 62,137 +831 +1.4% Gross Margin 20.9% +0.3pt SG&A 53,607 +6,769 +14
Slide 19: Results by Region (Overseas)
Results by Region (Overseas) Q1 FY2023 Gross profit & Operating Income before amortization of goodwill by quarter （Millions of JPY） YTD Actual YOY （Millions of JPY） Billings 55,156 +5,656 +11.4% Gross Profit 24,074 +2,830 +13.3% Gross Margin 43.6% +0.7pt SG&A 27,684 +5,542 +25.0% Operating Income -3
Slide 20: Billings by Service Category
Billings by Service Category Q1 FY2023 Composition (Millions of JPY) Actual YOY Ratio Newspapers 7,130 -144 -2.0% 2.4% Magazines 1,690 +136 +8.8% 0.6% Radio 2,524 -341 -11.9% 0.9% Television 91,831 +553 +0.6% 31.5% Trad-Media Service Subtotal 103,177 +204 +0.2% 35.4% Internet Media 87,284 +7,166 +8.
Slide 21: Billings by Clients’ Industry
Billings by Clients’ Industry Q1 FY2023 （Millions of JPY） Actual YOY Composition Information/Communications 30,216 -3,077 -9.2% 12.4% Beverages/Cigarettes/Luxury foods 27,645 -6,594 -19.3% 11.3% Automobiles/Related products 21,178 +1,468 +7.4% 8.7% Cosmetics/Toiletries 17,736 +492 +2.9% 7.3% Foodstu
Slide 22: Billings by Clients’ Industry
Billings by Clients’ Industry Q1 FY2023 • 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. - Positive Industries Distribution/Retailing Q1 FY2023 Actu
Slide 23: Billings by Clients’ Industry (by Quarter) 1
Billings by Clients’ Industry (by Quarter) 1 FY2021 FY2022 FY2023 (Millions of JPY) 22
Slide 24: Billings by Clients’ Industry (by Quarter) 2
Billings by Clients’ Industry (by Quarter) 2 FY2021 FY2022 FY2023 (Millions of JPY) 23
Slide 25: Billings by Clients’ Industry (by Quarter) 3
Billings by Clients’ Industry (by Quarter) 3 FY2021 FY2022 FY2023 (Millions of JPY) 24
Slide 26: Billings by Clients’ Industry (by Quarter) 4
Billings by Clients’ Industry (by Quarter) 4 FY2021 FY2022 FY2023 (Millions of JPY) 25
Slide 27: Other Income & Extra-ordinary Items
Other Income & Extra-ordinary Items Q1 FY2023 Other Income/Loss （Millions of JPY） Actual YOY Non-operating Income 3,211 +262 Interest Income 199 +92 Dividend Income 1,176 +59 FOREX 865 -40 Non-operating Expenses 1,004 +467 Interest Expenses 150 +30 Equity Method Loss 66 -182 Loss on investments in i
Slide 28: Balance Sheets
Balance Sheets （Millions of JPY） As of June 2023 Change * Composition Current Assets 583,969 -96,759 62.1% Cash & Deposits 160,679 -2,301 Accounts Recievable 305,758 -105,349 Non-current Assets 356,604 10,917 37.9% Tangible Assets 60,624 2,204 Intangible Assets 107,952 -514 Goodwill 69,950 -1,728 In
Slide 29: Cash Flow Statements
Cash Flow Statements Q1 FY2023 （Millions of JPY） Actual YOY Cash Flows from Operating Activities 9,438 -16,457 Cash Flows from Investing Activities -3,329 -225 Purchase of property, plant and equipment -1,673 -664 Purchase of intangible assets -2,125 -864 Purchase of investment securities -1,760 -29
Slide 30: HakuhodoDY holdings
HakuhodoDY holdings
Hakuhodo DY Holdings — Q1 FY2023 Earnings Presentation on 6ix