Hakuhodo Dy Holdings Incorporated · TSE:2433
Hakuhodo Dy — FY2021 Earnings Presentation
42 slides from Hakuhodo Dy's earnings presentation, May 12, 2022
Slide 1: Consolidated Financial Highlights FY2021 (April-Mar. 2022)
Consolidated Financial Highlights FY2021 (April-Mar. 2022) May 12, 2022 Hakuhodo DY Holdings, Inc.
Slide 2: Consolidated Results Highlights of FY 2021
Consolidated Results Highlights of FY 2021
Slide 3: FY2021 Summary
FY2021 Summary Achieved all-time highs in both billings and income, while continuing the trend of recovery from COVID. - Billings and income rose sharply on the recovery in advertising demand, with contributions from public-sector related business. - Gross margin improved as the top line recovered t
Slide 4: FY2021 Income Statement Highlights
FY2021 Income Statement Highlights （Millions of JPY） Actual YOY Difference from Forecast * Billings 1,518,921 +220,974 +17.0% -47,078 -3.0% Revenue 895,080 +180,519 +25.3% -24,919 -2.7% Operating Income 71,642 +26,609 +59.1% +2,642 +3.8% Ordinary Income 75,740 +26,146 +52.7% +3,740 +5.2% Net Income
Slide 5: FY2021 Results (Excluding Investment Business)
FY2021 Results (Excluding Investment Business) FY2021 Gross profit & Operating Income before amortization (Millions of JPY) Actual YOY vs FY2019 of goodwill by quarter Billings 1,512,146 +220,324 +17.1% +3.7% Revenue 888,305 +179,870 +25.4% +11.7% Gross Profit 380,624 +73,274 +23.8% +17.0% Gross Mar
Slide 6: Results by Region (Japan: Excluding Investment Business)
Results by Region (Japan: Excluding Investment Business) FY2021 Gross profit & Operating Income before amortization (Millions of JPY) Actual YOY vs FY2019 of goodwill by quarter （millions of JPY） Billings 1,333,900 +190,797 +16.7% +2.5% Revenue 710,059 +150,342 +26.9% +11.3% Gross Profit 304,589 +58
Slide 7: Results by Region (Overseas)
Results by Region (Overseas) FY2021 Gross profit & Operating Income before amortization (Millions of JPY) Actual YOY vs FY2019 of goodwill by quarter （Millions of JPY） Billings 184,273 +30,225 +19.6% +11.5% Revenue 184,273 +30,225 +19.6% +11.5% Gross Profit 79,034 +15,432 +24.3% +17.0% Gross Margin
Slide 8: Billings by Service Category
Billings by Service Category FY2021 Composition (Millions of JPY) Actual YOY （ref.）vs FY19 Ratio Newspapers 39,466 +1,843 +4.9% 3.0% -4,904 -11.1% Magazines 7,740 -2,524 -24.6% 0.6% -10,108 -56.6% Radio 11,821 -161 -1.3% 0.9% -3,057 -20.5% Television 393,918 +12,245 +3.2% 29.9% -33,550 -7.8% Trad-Me
Slide 9: Billings by Clients’ Industry
Billings by Clients’ Industry See p.19-23 for details. FY2021 • 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 Government
Slide 10: Selling, General & Administrative Expenses
Selling, General & Administrative Expenses FY2021 （Millions of JPY） Actual YOY Major Change Factors in SG&A (Millions of JPY) Personnel 218,788 +35,132 +19.1% Q4 FY20 SG&A 268,184 Rent 18,442 +162 +0.9% Change in scope of consolidation +4,171 Depreciations 6,721 +718 +12.0% Amortization of goodwill
Slide 11: Other Income & Extra-ordinary Items
Other Income & Extra-ordinary Items FY2021 （Millions of JPY） Actual YOY Other Income/Loss Non-operating Income 7,683 +2,050 Interest Income 480 +179 Dividend Income 1,713 -920 FOREX 551 +551 Investment Partership Income 386 -131 Equity Method Earnings 2,607 +1,936 Non-operating Expenses 3,585 +2,512
Slide 12: Guidance/Dividend for FY2022
Guidance/Dividend for FY2022
Slide 13: Guidance for FY2022
Guidance for FY2022 In spite of uncertainties such as rising resource prices, supply chain slowdowns, and the contagious state of the COVID, we expect the domestic advertising market to continue on a recovery trend. Billings are expected to increase 7.3% YoY to ¥1,630.0 billion, based on plans for g
Slide 14: Dividend forecast
Dividend forecast Our basic policy is to pay stable and continuous dividends. The amount of dividends will be determined after comprehensively taking into consideration the status of demand for financial funds, trends in business performance, and the enhancement of retained earnings. For the fiscal
Slide 15: Change in accounting standards & Note Concerning Audits
Cautionary Statements Concerning Forward-looking Statements, リレーションシップ ID rId2 のイメージ パーツがファイルにありませんでした。 Change in accounting standards & Note Concerning Audits （Cautionary Statements Concerning Forward-looking Statements） This presentation includes forward-looking statements concerning forecasts of
Slide 16: Supplements
Supplements
Slide 17: Interim Income Statements
Interim Income Statements Japanese GAAP-basis Interim Income Statements for FY2021 YTD（12-Month） by Quarter（3-Month） （Millions of JPY） Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,518,921 +220,974 +17.0% 326,964 +25.3% 334,409 +22.5% 377,946 +8.3% 479,601 +15.6% Revenue 895,080 +180,519 +25.3%
Slide 18: Results Excluding Investment Business
Results Excluding Investment Business FY2021 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 1,512,146 220,324 +17.1% 323,680 +26.6% 332,528 +21.9% 376,646 +8.0% 479,291 +15.6% Revenue 888,305 179,870 +25.4% 1
Slide 19: Results by Region
Results by Region （Millions of JPY） Actual YOY FY2021 Japan Billings 1,340,675 +191,446 +16.7% Revenue 716,834 +150,992 +26.7% Gross Profit 311,058 +58,651 +23.2% SG&A 219,001 +31,020 +16.5% Operating Income 92,057 +27,631 +42.9% Overseas Billings 184,273 +30,225 +19.6% Revenue 184,273 +30,225 +19.6
Slide 20: Results by Region (YTD, by Quarter)
Results by Region(YTD, by Quarter) FY2021 YTD （12 -Month） by Quarter（3-Month） Japan (Excluding Investment Business) （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Billings 1,333,900 +190,797 +16.7% 284,874 +30.2% 291,169 +19.0% 335,691 +6.7% 422,165 +15.7% Gross Profit 304,589 +58,050
Slide 21: Billings by Service Category
Billings by Service Category FY2021 YTD （12-Month） by Quarter（3-Month） （Millions of JPY） YTD Actual YOY Q1 YOY Q2 YOY Q3 YOY Q4 YOY Newspapers 39,466 +1,843 +4.9% 9,201 +44.2% 8,222 -0.1% 10,519 -8.4% 11,522 -0.0% Magazines 7,740 -2,524 -24.6% 1,907 -20.2% 2,126 -4.3% 2,653 -17.2% 1,052 -57.0% Radio
Slide 22: Billings by Clients’ Industry
Billings by Clients’ Industry FY2021 （Millions of JPY） Actual YOY Composition vs FY2019 Information/Communications 143,212 +19,693 +15.9% 12.7% +4,240 +3.1% Beverages/Cigarettes/Luxury foods 124,422 +11,430 +10.1% 11.0% +4,172 +3.5% Automobiles/Related products 105,931 -5,188 -4.7% 9.4% -30,063 -22.
Slide 23: Billings by Clients’ Industry (YoY, by Quarter) 1/4
Billings by Clients’ Industry (YoY, by Quarter) 1/4 FY2020 FY2021 (Millions of JPY) 22
Slide 24: Billings by Clients’ Industry (YoY, by Quarter) 2/4
Billings by Clients’ Industry (YoY, by Quarter) 2/4 (Millions of JPY) 23
Slide 25: Billings by Clients’ Industry (YoY, by Quarter) 3/4
Billings by Clients’ Industry (YoY, by Quarter) 3/4 (Millions of JPY) 24
Slide 26: Billings by Clients’ Industry (YoY, by Quarter) 4/4
Billings by Clients’ Industry (YoY, by Quarter) 4/4 (Millions of JPY) 25
Slide 27: Balance Sheets
Balance Sheets （Millions of JPY） End of June 2021 Change * Composition Current Assets 754,854 128,122 71.7% Cash & Deposits 183,983 4,671 Accounts Recievable 438,404 77,681 Non-current Assets 298,162 -16,209 28.3% Tangible Assets 37,124 2,208 Intangible Assets 72,317 3,265 Goodwill 45,097 3,296 Inve
Slide 28: Cash Flow Statements
Cash Flow Statements FY2021 （Millions of JPY） Actual YOY Cash Flows from Operating Activities 20,852 -15,359 Cash Flows from Investing Activities -11,292 -1,461 Purchase of property, plant and equipment -5,037 -272 Purchase of intangible assets -5,411 +594 Purchase of investment securities -7,141 -4
Slide 29: 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 HP: HAKUHODO Product’s INC.
Slide 30: Medium-Term Business Plan (Revised Period: FY2021–FY2023)
Medium-Term Business Plan (Revised Period: FY2021–FY2023) With sei-katsu-sha insight as our cornerstone, the Hakuhodo DY Group will combine our creativity, integrative capabilities, and data and technology utilization skills to play a Core Medium- leading role in evolving companies’ marketing activi
Slide 31: Overview of Progress in FY2021
Overview of Progress in FY2021 ■ Both gross profit after adjustments and operating income after adjustments and before amortization of goodwill grew significantly as a result of not only the recovery in advertising demand but also temporary positive factors, such as work related particularly to the
Slide 32: Overview of Progress in FY2021
Overview of Progress in FY2021 ■ Operating income before amortization of goodwill including investment projects is a record high ¥84.0 billion ■ ROE before amortization of goodwill is a high 19.7% due in part to temporary Operating Income Before Amortization of ROE Before Amortization of Goodwill Go
Slide 33: Initiatives to Transform Our Services and Business Foundation
Initiatives to Transform Our Services and Business Foundation ■ We will undertake the following four initiatives adopted under the MTBP to strengthen our structure and response capabilities Transform the services we provide: Implementation of １ full-funnel Sei-katsu-sha Data-Driven Marketing Strengt
Slide 34: Transform the Services We Provide: Expand Marketing Execution Domains
1. Transform the Services We Provide: Expand Marketing Execution Domains ■ Gross profit in marketing execution domains excluding COVID-19 pandemic-related business process outsourcing (BPO) increased 24.3% year on year ■ Amid dramatic changes to sei-katsu-sha’s purchasing behavior and companies’ nee
Slide 35: Transform the Services We Provide: Transform Media Business
1. Transform the Services We Provide: Transform Media Business ■ Billings in the internet domain rose by double digits thanks to growth at both our integrated advertising companies and next-generation digital agency ■ We focused our efforts on further expanding digital business on a Groupwide basis,
Slide 36: Implement Sei-katsu-sha Insight-Based Digital Transformation (DX)
1. Transform the Services We Provide: Implement Sei-katsu-sha Insight-Based Digital Transformation (DX) ■ We implemented efforts to incorporate growth markets that leveraged the Group’s diverse range of capabilities, including supporting DX in the sales promotion domain and developing new advertisin
Slide 37: Strengthen Cross-Organizational Functions to Accelerate Transformation
2. Strengthen Cross-Organizational Functions to Accelerate Transformation ■ We established a new company that will serve as the core for the Group’s technology and infrastructure development. We also formed an R&D organization that promotes the utilization of AI and other technologies in the creativ
Slide 38: Strengthen Response Capabilities for Borderless Corporate Activities
3. Continuously Pursue Transformation Based on Existing Strategies: Strengthen Response Capabilities for Borderless Corporate Activities ■We realized 24.3% year-on-year growth in gross profit from our overseas business, with the ratio of overseas gross profit to total gross profit increasing to 20.8
Slide 39: Accelerate Innovation through External Collaborations
3. Continuously Pursue Transformation Based on Existing Strategies: Accelerate Innovation through External Collaborations ■ We sought to invigorate business co-creation between companies in a manner that transcends industries and countries. For example, we collaborated with startups that are pursuin
Slide 40: Strengthen Our Foundation for Sustainable Business Management
4. Strengthen Our Foundation for Sustainable Business Management ■ With the aim of achieving our sustainability goal, we put in place a structure for implementing concrete actions, such as engaging in dialogue with all of our stakeholders and promoting efforts focused on important management themes,
Slide 41: (Reference) Working toward the TCFD Recommendations
(Reference) Working toward the TCFD Recommendations ■ The Group has endorsed the recommendations of the Task Force on Climate- related Financial Disclosures (TCFD) and is disclosing information in accordance with TCFD frameworks Working toward the TCFD Recommendations Target for Reducing Greenhouse
Slide 42: HakuhodoDY holdings
HakuhodoDY holdings