Hakuhodo Dy Holdings Incorporated · TSE:2433

Hakuhodo Dy — Q3 FY2024 Earnings Presentation

31 slides from Hakuhodo Dy's earnings presentation, Feb 12, 2025

  1. Slide 1: Consolidated Financial Highlights Third Quarter FY2024

    Consolidated Financial Highlights Third Quarter FY2024 (Apr.–Dec., 2024) February 12, 2025 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

  2. Slide 2: Business Topics

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

  3. Slide 3: Strengthening initiatives that leverage AI

    Business Topics Strengthening initiatives that leverage AI (Hakuhodo/Hakuhodo DY Holdings) Realizing AI agent-supported media planning Utilization of a proprietary cluster and persona generation tool Development of a tool that checks image Partnership with Tools for Humanity, co- copyright infringem

  4. Slide 4: Commerce business: Accelerating demand chain transformation through joint ventures

    Business Topics Commerce business: Accelerating demand chain transformation through the establishment of joint ventures (Hakuhodo) Transformation of customer Implementation of IT-supported touchpoints through app development business transformation ✕ ✕ Won numerous awards 2024 64th ACC TOKYO Ministr

  5. Slide 5: Highlights of Consolidated Results for Q3 FY2024

    Highlights of Consolidated Results for Q3 FY2024 Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

  6. Slide 6: Q3 FY2024 Consolidated Results

    Q3 FY2024 Consolidated Results • Billings increased by 2.8% YoY, and revenue also increased by 2.0% YoY. • Operating income increased by 44.9% to ¥22.6 billion. Ordinary income increased by 46.4% to ¥24.8 billion. • As a result of recording an extraordinary loss of ¥11.9 billion related to structura

  7. Slide 7: Q3 FY2024 Consolidated Results (After Adjustments) 1

    Q3 FY2024 Consolidated Results (After Adjustments) 1 • Billings increased by 3.1% YoY. Gross profit increased by 3.7% YoY. Gross margin improved by 0.1 pt. • SG&A expenses increased by 0.1% YoY. Operating income increased by ¥9.8 billion YoY to ¥19.3 billion. • Operating income before amortization o

  8. Slide 8: Q3 FY2024 Consolidated Results (After Adjustments) 2

    Q3 FY2024 Consolidated Results (After Adjustments) 2 ⚫ The operating income before amortization of G/W for Q3 increased by ¥10.1 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 ¥2.3 bi

  9. Slide 9: Q3 FY2024 Consolidated Results (After Adjustments) 3

    Q3 FY2024 Consolidated Results (After Adjustments) 3 ⚫ The operating income before amortization of G/W for Q3 increased by ¥10.1 billion YoY. • Japan/Corporate: In Japan, the strong performance of television and internet media continued. In Q3, performance was on par with the previous year, despite

  10. Slide 10: Guidance for FY2024

    Guidance for FY2024 © Hakuhodo DY Holdings Inc. All rights reserved.

  11. Slide 11: 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 ofJPY） JPY） Forecast YoY Billings Billings 1,675,000 +6.1% Revenue Revenue 1,000,000 +5.6% OperatingIncome Operating Income 36,000 +5.

  12. Slide 12: Cautionary Statements Concerning Forward-looking Statements

    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

  13. Slide 13: Appendix

    Appendix © Hakuhodo DY Holdings Inc. All rights reserved.

  14. Slide 14: Interim Income Statement

    Interim Income Statement Japanese GAAP-basis Interim Income Statement for Q3 FY2024 YTD（9-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 1,149,343 +31,648 +2.8% 352,513 -0.5% 382,880 +11.5% 413,949 -1.4% Revenue 659,512 +13,202 +2.0% 200,361 -0.5% 227,492 +14.8

  15. Slide 15: Results After Adjustments

    Results After Adjustments Q3 FY2024 YTD（9-Month） by Quarter（3-Month） Results After Adjustments （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 1,146,077 34,520 +3.1% 349,246 +0.2% 382,880 +11.6% 413,949 -1.4% Revenue 656,245 16,073 +2.5% 197,095 +0.7% 227,492 +15.0% 231,658 -6.1% Gross Pr

  16. Slide 16: Results by Region

    Results by Region Q3 FY2024, YTD （Millions of JPY） Actual YOY Japan Billings 983,503 +34,299 +3.6% Revenue 493,602 +15,811 +3.3% Gross Profit 210,039 +5,481 +2.7% SG&A Expenses 154,515 -6,532 -4.1% Operating Income 55,523 +12,013 +27.6% Overseas Billings 172,984 -3,273 -1.9% Revenue 172,984 -3,273 -

  17. Slide 17: Results by Region (YTD, by Quarter)

    Results by Region (YTD, by Quarter) Q3 FY2024 YTD（9-Month） by Quarter（3-Month） Japan (After Adjustments) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Billings 980,236 +37,170 +3.9% 297,997 +0.7% 323,963 +13.2% 358,276 -0.7% Gross Profit 206,783 +8,329 +4.2% 61,256 +1.4% 68,946 +13.2% 76,580

  18. Slide 18: Results by Region (Japan: After Adjustments)

    Results by Region (Japan: After Adjustments) Q3 FY2024, YTD (Millions of JPY) Actual YOY Gross Profit & Operating Income before Amortization of Goodwill by Quarter Billings 980,236 +37,170 +3.9% （Millions of JPY） Revenue 490,335 +18,682 +4.0% Gross Profit 206,783 +8,329 +4.2% Gross Margin 21.1% +0.1

  19. Slide 19: Results by Region (Overseas)

    Results by Region (Overseas) Q3 FY2024, YTD (Millions of JPY) Actual YOY Gross Profit & Operating Income before Billings 172,984 -3,273 -1.9% Amortization of Goodwill by Quarter （Millions of JPY） Revenue 172,984 -3,273 -1.9% Gross Profit 79,382 +2,093 +2.7% Gross Margin 45.9% +2.0pt SG&A Expenses 86

  20. Slide 20: Japan: Billings by Type of Service

    Japan: Billings by Type of Service Q3 FY2024, YTD (Millions of JPY) Actual YOY Composition Newspaper 19,098 -3,393 -15.1% 2.0% Magazine 5,099 -580 -10.2% 0.5% Radio 7,217 -189 -2.6% 0.7% Television 288,020 +6,097 +2.2% 29.7% Traditional Media Service Subtotal 319,436 +1,933 +0.6% 32.9% Internet Medi

  21. Slide 21: Billings by Type of Service (YTD, by Quarter)

    Billings by Type of Service (YTD, by Quarter) Q3 FY2024 YTD（9-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Newspaper 19,098 -3,393 -15.1% 5,536 -22.4% 6,076 -12.2% 7,485 -11.4% Magazine 5,099 -580 -10.2% 1,318 -22.0% 1,662 -11.4% 2,119 +0.3% Radio 7,217 -189 -2.6%

  22. Slide 22: Japan: Billings by Client Industry

    Japan: Billings by Client Industry （Millions of JPY） Actual YOY Composition Q3 FY2024, YTD Information/Communications 105,544 +13,390 +14.5% 12.8% Beverages/Cigarettes/Luxury foods 84,262 -2,929 -3.4% 10.2% Automobiles/Related products 71,197 -5,616 -7.3% 8.7% Foodstuffs 62,318 +7,126 +12.9% 7.6% Re

  23. Slide 23: Japan: Billings by Client Industry

    Japan: Billings by Client Industry ⚫ Positive Industries Government/Organizations Q3 FY2024 Actual ¥ 36.6bil YoY +¥16.6bil (+83.7%) Information/Communications ¥105.5bil YoY +¥13.3bil (+14.5%) ⚫ Negative Industries Automobiles/Related products Q3 FY2024 Actual ¥ 71.1bil YoY -¥ 5.6bil (-7.3%) Househol

  24. Slide 24: 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. 23

  25. Slide 25: 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. 24

  26. Slide 26: 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. 25

  27. Slide 27: 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. 26

  28. Slide 28: Selling, General & Administrative Expenses

    Selling, General & Administrative Expenses Q3 FY2024, YTD （Millions of JPY） Actual YOY Major Change Factors in SG&A Expenses (Millions of JPY) Personnel 176,009 -2 -0.0% Q3 FY2023 SG&A Expenses 262,473 Rent 15,268 -230 -1.5% Change in scope of consolidation +391 Depreciations 7,810 +500 +6.9% Amorti

  29. Slide 29: Other Income/Loss & Extraordinary Items

    Other Income/Loss & Extraordinary Items Q3 FY2024, YTD Other Income/Loss （Millions of JPY） Actual YOY Non-operating Income 5,024 +961 Interest Income 530 +157 Dividend Income 1,971 -54 Foreign Exchange Gains 553 +279 Investment Partership Income 756 +756 Non-operating Expenses 2,796 +101 Interest Ex

  30. Slide 30: Balance Sheet

    Balance Sheet （Millions of JPY） As of Dec.31, 2024 Change * Composition Current Assets 623,383 -67,004 64.9% Cash & Deposits 143,114 -41,412 Notes and Accounts Receivable 369,503 -32,655 Non-current Assets 336,984 -7,641 35.1% Tangible Assets 54,760 -6,207 Intangible Assets 100,115 -4,366 Goodwill 5

  31. Slide 31: Ⓒ HAKUHODO DY Holdings Inc, All Rights Reserved. | CONFIDENTIAL

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

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