Q1/ Summary of Financial Results for the Three Months Ended Mar 31, 2026（572KB）

－IFRS Consolidated Results－

Name of Listed Company: Dentsu Group Inc. Code Number: 4324

Stock Exchange Listing: Prime Market of the Tokyo Stock Exchange URL: https://www.group.dentsu.com/en/

Name of Representative: Takeshi Sano, Representative Executive Officer,

President & Global CEO Scheduled start date of dividend payment:

-

Supplementary briefing material on financial results:

Available

Financial results briefing for institutional investors and analysts:

Scheduled

Contact: Jumpei Kojima

Deputy Global Chief Communications Officer Telephone: (813) 6217-6601

1. Summary of Financial Results for the Three Months Ended March 31, 2026 (from January 1, 2026 to March 31, 2026)

   (Figures are rounded down to the nearest one million yen)

   1. Consolidated Financial Results (cumulative)

      (Percentages indicate the rate of increase or decrease compared with the previous corresponding period.)

      (Millions of yen, except as otherwise stated)

      	Revenue		Net revenue		Underlying operating profit		Operating margin	Operating profit
      Three months ended March 31, 2026	357,129	3.5%	295,064	2.7%	37,812	11.5%	12.8%	64,958	155.5%
      Three months ended March 31, 2025	345,160	3.7%	287,287	(0.6%)	33,926	13.7%	11.8%	25,426	75.5%

      	Profit before tax		Profit for the period		Underlying net profit attributable to owners of the parent		Profit attributable to owners of the parent		Total comprehensive income for the period
      Three months ended March 31, 2026	62,541	187.0%	43,206	378.3%	19,581	18.4%	40,153	540.5%	45,383	-
      Three months ended March 31, 2025	21,788	16.8%	9,033	(16.9%)	16,538	4.5%	6,269	12.9%	(10,380)	-

      (Yen)

      	Underlying basic earnings per share	Basic earnings per share	Diluted earnings per share
      Three months ended March 31, 2026	75.43	154.68	154.05
      Three months ended March 31, 2025	63.71	24.15	24.08

      For the definition of "Underlying operating profit" and "Underlying net profit attributable to owners of the parent," please refer to "Qualitative Information on Financial Results" on page 6.

   2. Consolidated Financial Position

   (Millions of yen, except as otherwise stated)

   	Total assets	Total equity	Total equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets	Equity attributable to owners of the parent per share (Yen)
   As of March 31, 2026	3,044,735	477,850	417,230	13.7%	1,607.29
   As of December 31, 2025	3,206,787	447,954	374,849	11.7%	1,444.02

2. Dividends

   (Yen, except as otherwise stated)

   	Cash dividend per share
   	First Quarter	Second Quarter	Third Quarter	Year-end	Total
   Fiscal year ended December 31, 2025	-	0.00	-	0.00	0.00
   Fiscal year ending December 31, 2026	-
   Fiscal year ending December 31, 2026 (forecast)		0.00	-	0.00	0.00

   Note: Revisions to the forecast of dividends most recently announced: None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2026 (from January 1, 2026 to December 31, 2026)

(Millions of yen, except as otherwise stated)

Note: Revisions to the forecast of consolidated financial results most recently announced: None

Given the uncertain business environment, we set targets within a specific range for particularly important KPIs.

For the definition of "Underlying operating profit" and "Underlying net profit attributable to owners of the parent," please refer to "Qualitative Information on Financial Results" on page 6.

Notes

1. Significant Changes in the Scope of Consolidation during the Period: None

2. Changes in Accounting Policies and Changes in Accounting Estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of Issued Shares (Ordinary Shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	265,800,000 shares
      As of December 31, 2025	265,800,000 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026	6,213,645 shares
      As of December 31, 2025	6,213,175 shares

   3. Average number of shares during the period (cumulative from the beginning of the fiscal year)

Notes

Review of the Japanese-language originals of the attached quarterly consolidated financial statements by the Certified Public Accountants or the audit corporation: Yes (voluntary)

Disclaimer regarding appropriate use of forecasts and related points of note Since the forecast of financial results and other forward-looking statements herein have been prepared based on certain conditions which Dentsu Group Inc. (hereinafter "the Company") believes to be reasonable at this time, actual financial results may be substantially different from the forecast due to various factors.

For information relating to forecasts, please refer to "Qualitative Information on Financial Results Forecast" on page 8.

Table of Contents - Attachments

1. Qualitative Information on Quarterly Financial Results 6

   1. Qualitative Information on Financial Results 6

   2. Qualitative Information on Financial Results Forecast 8

2. Matters Pertaining to Summary Information (Notes) 9

   1. Changes in Significant Consolidated Subsidiaries during the Period 9

   2. Adoption of Accounting Treatment Specific to the Preparation

      of Quarterly Consolidated Financial Statements 9

   3. Changes in Accounting Policies, Changes in Accounting Estimates,

      Restatement, and Changes in Presentation 9

3. Condensed Quarterly Consolidated Financial Statements and Primary Notes 10

   1. Condensed Quarterly Consolidated Statement of Financial Position 10

   2. Condensed Quarterly Consolidated Statement of Income 12

   3. Condensed Quarterly Consolidated Statement of Comprehensive Income 14

   4. Condensed Quarterly Consolidated Statement of Changes in Equity 15

   5. Condensed Quarterly Consolidated Statement of Cash Flows 17

   6. Notes on the Condensed Quarterly Consolidated Financial Statements 19

(Notes on Premise of Going Concern) 19

(Segment and Other Information) 19

(Significant Subsequent Events) 21

Independent Auditor's Report on

Review of Quarterly Consolidated Financial Statements 22

1. Qualitative Information on Quarterly Financial Results
   1. Qualitative Information on Financial Results

      In the three months ended March 31, 2026, the outlook for the global economy remained uncertain due to factors such as the prolonged instability in the international situation, as well as rising prices.

      In this environment, the business results of the Group during the three months ended March 31, 2026, are as presented in the table below. Although the Group saw net revenue organic growth of 0.8%, net revenue increased by 2.7% year on year due to factors such as exchange rates. With measures such as SG&A expenses control, underlying operating profit increased by 11.5% resulting in operating margin increase of 100 bps while underlying net profit attributable to owners of the parent increased by 18.4%. Operating profit increased by 155.5% year on year, and profit attributable to owners of the parent increased by 540.5% year on year due to factors such as the recording of gains on the sale of the Dentsu Ginza Building.

      Underlying operating profit is a profit indicator to measure recurring business performance which is calculated as operating profit added with M&A related items and one-off items.

      M&A related items: amortization of purchased intangible assets, acquisition costs and share-based compensation expenses issued following the acquisition of 100% ownership of a subsidiary

      One-off items: items such as business transformation cost, impairment loss, gain/loss on sales of non-current assets and extra retirement payments

      Underlying net profit attributable to owners of the parent is an indicator to measure recurring profit attributable to owners of the parent which is calculated as profit (attributable to owners of the parent) added with adjustment items related to operating profit, change in fair value of contingent considerations (gain/loss on revaluation of earnout liabilities), remeasurements of share purchase liabilities (gain/loss on revaluation of M&A related put-option liabilities), tax-related, NCI profit-related and other one-off items.

      Business results for the three months ended March 31, 2026

      (Monetary amounts are shown in millions of yen, with negative amounts shown in parentheses)

      Item	Three months ended March 31, 2025	Three months ended March 31, 2026	YoY change
      Revenue	345,160	357,129	3.5％
      Net revenue	287,287	295,064	2.7％
      Operating profit	25,426	64,958	155.5%
      Profit for the period (attributable to owners of the parent)	6,269	40,153	540.5%

      Main profit indicators for the three months ended March 31, 2026

      (Monetary amounts are shown in millions of yen, with negative amounts shown in parentheses)

      Item	Three months ended March 31, 2025	Three months ended March 31, 2026	YoY change
      Underlying operating profit	33,926	37,812	11.5％
      Operating margin	11.8％	12.8%	100bps
      Underlying net profit (attributable to owners of the parent)	16,538	19,581	18.4％

      Performance by reportable segment for the three months ended March 31, 2026, is as follows.

      1. Japan

         Japan saw organic growth of 4.7% with the growth in the Marketing business led by Internet and TV advertising, Digital Transformation (DX), and Business Transformation (BX).

         As the results of CARTA HOLDINGS, which was reclassified to an equity-method affiliate in January 2026, were included in the results for the previous corresponding period, net revenue was 128,873 million yen (0.6% decrease year on year). However, with SG&A expenses decrease, underlying operating profit was 39,754 million yen (5.6% increase year on year) and operating margin was 30.8% (29.0% for the previous corresponding period).

      2. Americas

         The Americas saw organic decline of 3.0%, with the United States, the primary market, posting organic decline.

         Although net revenue in the Americas was 76,443 million yen (0.2% increase year on year) due to a shift in the exchange rate toward a weaker yen against the United States Dollar, net revenue decrease on a constant currency basis led to underlying operating profit of 12,280 million yen (9.2% decrease year on year) and operating margin of 16.1% (17.7% for the previous corresponding period).

      3. EMEA (Europe, the Middle East, and Africa)

         EMEA saw organic growth of 0.8%. By major market, the United Kingdom, Spain, and Poland achieved organic growth, while Germany, Italy, and Switzerland posted organic decline.

         Due to a shift in the exchange rate toward a weaker yen against the Great Britain Pound and Euro, net revenue in EMEA was 65,501 million yen (15.0% increase year on year), underlying operating profit was 2,547 million yen (underlying operating loss of 1,554 million yen in the previous corresponding period), and operating margin was 3.9% (negative 2.7% for the previous corresponding period).

      4. APAC (Asia Pacific excluding Japan)

         APAC saw organic decline of 7.5%. By major market, India achieved organic growth, while Australia, China, and Singapore posted organic decline.

         Net revenue in APAC was 22,771 million yen (1.3% decrease year on year), underlying operating loss was 3,174 million yen (underlying operating loss of 3,224 million yen for the previous corresponding period), and operating margin was negative 13.9% (negative 14.0% for the previous corresponding period).

   2. Qualitative Information on Financial Results Forecast

   The forecast of the full-year consolidated financial results for the fiscal year ending December 31, 2026, which was disclosed on February 13, 2026, is reiterated. Meanwhile, uncertainty surrounding the global economy is increasing due to geopolitical risks such as the situation in the Middle East and the prolonged conflict in Ukraine, as well as soaring resource and energy prices. Caution is warranted as these factors may have an impact on our consolidated financial results.

2. Matters Pertaining to Summary Information (Notes)
   1. Changes in Significant Consolidated Subsidiaries during the Period

      No items to report

   2. Adoption of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements

      No items to report

   3. Changes in Accounting Policies, Changes in Accounting Estimates,
   Restatement, and Changes in Presentation

   (Changes in Presentation)

   (Condensed Quarterly Consolidated Statement of Income)

   "Gain (loss) on sale and retirement of non-current assets," which had been presented under "Other expenses" in the three months ended March 31, 2025, is presented separately in the three months ended March 31, 2026, because of its increased quantitative materiality. The Company has reorganized the Condensed Quarterly Consolidated Statement of Income for the three months ended March 31, 2025, to reflect this change in presentation.

   As a result, 49 million yen presented under "Other expenses" in the Condensed Quarterly Consolidated Statement of Income for the three months ended March 31, 2025, has been reclassified as "Gain (loss) on sale and retirement of non-current assets" of (49) million yen.

   (Condensed Quarterly Consolidated Statement of Cash Flows)

   "(Gain) loss on sale and retirement of non-current assets," which had been presented under "Other-net" in "Cash flows from operating activities" in the three months ended March 31, 2025, is presented separately in the three months ended March 31, 2026, because of its increased quantitative materiality. The Company has reorganized the Condensed Quarterly Consolidated Statement of Cash Flows for the three months ended March 31, 2025, to reflect this change in presentation.

   As a result, 49 million yen presented under "Other-net" in "Cash flows from operating activities" in the Condensed Quarterly Consolidated Statement of Cash Flows for the three months ended March 31, 2025, has been reclassified as "(Gain) loss on sale and retirement of non-current assets" of 49 million yen.

3. Condensed Quarterly Consolidated Financial Statements and Primary Notes

1. Condensed Quarterly Consolidated Statement of Financial Position

   FY2025

   (As of December 31, 2025)

   (Millions of yen)

   The first quarter (As of March 31, 2026)

   ASSETS

   CURRENT ASSETS:

   Cash and cash equivalents	295,183	255,893
   Trade and other receivables	1,818,316	1,696,182
   Inventories	9,492	24,345
   Income tax receivables	41,514	43,386
   Other financial assets	22,289	23,832
   Other current assets	60,899	71,487
   Subtotal	2,247,696	2,115,128
   Non-current assets classified as held for sale	53,707	3,733
   Total current assets	2,301,403	2,118,862
   NON-CURRENT ASSETS:
   Property, plant and equipment	22,967	22,083
   Goodwill	320,102	322,815
   Intangible assets	178,219	170,167
   Right-of-use assets	104,511	120,601
   Investments accounted for using the equity method	53,164	70,769
   Other financial assets	107,661	109,087
   Other non-current assets	65,690	65,191
   Deferred tax assets	53,066	45,157
   Total non-current assets	905,383	925,873
   TOTAL ASSETS	3,206,787	3,044,735

   FY2025

   (As of December 31, 2025)

   (Millions of yen)

   The first quarter (As of March 31, 2026)

   LIABILITIES AND EQUITY LIABILITIES

   CURRENT LIABILITIES:

   Trade and other payables	1,655,434		1,547,350
   Bonds and borrowings	122,067		105,695
   Other financial liabilities	71,037		76,970
   Income tax payables	37,271		25,415
   Provisions	18,864		17,054
   Other current liabilities	210,390		182,311
   Subtotal Liabilities directly associated with non-current assets classified as held for sale	2,115,065 30,176		1,954,798 760
   Total current liabilities	2,145,241		1,955,558
   NON-CURRENT LIABILITIES:
   Bonds and borrowings	346,174		346,207
   Other financial liabilities	198,914		201,810
   Liability for retirement benefits	15,868		16,135
   Provisions	13,048		10,906
   Other non-current liabilities	6,259		5,843
   Deferred tax liabilities	33,325		30,422
   Total non-current liabilities	613,590		611,326
   Total liabilities	2,758,832		2,566,885
   EQUITY:
   Share capital	74,609		74,609
   Share premium account	75,862		75,735
   Treasury shares	(26,494)		(26,496)
   Other components of equity	201,359		202,258
   Retained earnings	49,511		91,122
   Total equity attributable to owners of the parent	374,849		417,230
   Non-controlling interests	73,105		60,619
   Total equity	447,954		477,850
   TOTAL LIABILITIES AND EQUITY	3,206,787		3,044,735

2. Condensed Quarterly Consolidated Statement of Income

   For the three months ended March 31, 2025 and March 31, 2026

   Three months ended March 31, 2025

   (From January 1

   to March 31, 2025)

   (Millions of yen) Three months ended

   March 31, 2026

   (From January 1

   to March 31, 2026)

   Revenue	345,160		357,129
   Cost of sales	(57,872)		(62,064)
   Net revenue	287,287		295,064
   Selling, general and administrative expenses	(259,210)		(263,760)
   Business transformation cost	(2,264)		(3,581)
   Gain (loss) on sale and retirement of non-current assets	(49)		29,678
   Other income	523		7,708
   Other expenses	(861)		(151)
   Operating profit	25,426		64,958
   Share of results of associates	1,570		2,145
   Gain on sales of shares of associates	12		-
   Profit before interest and tax	27,009		67,104
   Finance income	1,804		1,888
   Finance costs	(7,025)		(6,450)
   Profit before tax	21,788		62,541
   Income tax expense	(12,755)		(19,335)
   Profit for the period	9,033		43,206
   Profit attributable to:
   Owners of the parent	6,269		40,153
   Non-controlling interests	2,763		3,052
   Earnings per share
   Basic earnings per share (Yen)	24.15	154.68
   Diluted earnings per share (Yen)	24.08	154.05

   Reconciliation from operating profit to underlying operating profit

   (Millions of yen)

   Three months ended

   March 31, 2025

   (From January 1

   to March 31, 2025)

   Three months ended

   March 31, 2026

   (From January 1

   to March 31, 2026)

   Operating profit 25,426 64,958

   Amortization of intangible assets incurred in

   acquisitions 6,216 6,098

   Selling, general and administrative

   expenses	335	33
   Business transformation cost	2,264	3,581
   (Gain) loss on sale and retirement of non-current assets	49	(29,678)
   Other income	(366)	(7,184)
   Other expenses	-	1
   Underlying operating profit (Note)	33,926	37,812

   (Note) The underlying operating profit is a KPI to measure recurring business performance which is calculated by eliminating gain/loss related to M&As and one-off items from operating profit.

   Gain/loss related to M&As: Amortization of M&A related intangible assets,

   acquisition costs and share-based compensation expenses following the acquisition of 100% ownership of a subsidiary

   Examples of one-off items: Business transformation cost, impairment loss,

   gain/loss on sales of non-current assets and extra retirement payments

   Underlying operating profit is not defined under IFRS; however, it is voluntarily disclosed in the Condensed Quarterly Consolidated Statement of Income since management has concluded that the information is useful for users of the financial statements.

3. Condensed Quarterly Consolidated Statement of Comprehensive Income

   Three months ended March 31, 2025

   (From January 1

   to March 31, 2025)

   (Millions of yen)

   Three months ended March 31, 2026

   (From January 1

   to March 31, 2026)

   PROFIT FOR THE PERIOD 9,033 43,206

   OTHER COMPREHENSIVE INCOME ITEMS THAT WILL NOT BE

   RECLASSIFIED TO PROFIT OR LOSS:

   Net change in financial assets measured

   at fair value through other comprehensive income	(649)	866
   Remeasurements of defined benefit plans	(47)	(48)
   Share of other comprehensive income of investments accounted for using the equity method	(62)	(145)

   ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS:

   Exchange differences on translation of

   value of cash flow hedges	(3,874)	2,618
   Hedge cost	117	154
   Share of other comprehensive income of investments accounted for using the equity method	(12)	(4)
   Other comprehensive income, net of tax	(19,414)	2,177

   foreign operations (14,884) (1,262) Effective portion of the change in the fair

   COMPREHENSIVE INCOME FOR THE

   PERIOD (10,380) 45,383

   COMPREHENSIVE INCOME FOR THE

   PERIOD ATTRIBUTABLE TO:
   Owners of the parent	(12,970)	42,261
   Non-controlling interests	2,589	3,122

4. Condensed Quarterly Consolidated Statement of Changes in Equity

   For the three months ended March 31, 2025 (From January 1 to March 31, 2025)

   Total equity attributable to owners of the parent

   Other components of equity

   (Millions of yen)

   Share capital

   Share premium account

   Treasury shares

   Exchange differences on translation of foreign operations

   Effective portion of the change in the fair value of cash flow hedges

   Hedge cost

   As of January 1, 2025	74,609	75,373	(26,559)	151,599	18,190	(1,131)
   Profit for the period
   Other comprehensive income				(14,708)	(3,874)	117
   Comprehensive income for the period	-	-	-	(14,708)	(3,874)	117
   Repurchase of treasury shares			(0)
   Dividends
   Transactions with non-controlling interests
   Loss of control of subsidiaries
   Transfer from other components of equity to retained earnings
   Transfer to non-financial assets					(73)
   Other changes		37
   Transactions with owners－
   total	-	37	(0)	-	(73)	-
   As of March 31, 2025	74,609	75,410	(26,560)	136,891	14,242	(1,014)
   						(Millions of yen)

   Total equity attributable to owners of the parent Other components of equity

   Net change in financial assets

   measured at fair value through other comprehensive income

   Remeasurements of defined benefit plans

   Total

   Retained Total earnings

   Non-controlling interests

   Total equity

   As of January 1, 2025	47,822	-	216,481	356,933	696,838	72,197	769,035
   Profit for the period			-	6,269	6,269	2,763	9,033
   Other comprehensive
   income	(726)	(47)	(19,239)		(19,239)	(174)	(19,414)
   Comprehensive income for the period	(726)	(47)	(19,239)	6,269	(12,970)	2,589	(10,380)
   Repurchase of treasury shares			-		(0)		(0)
   Dividends			-	(18,105)	(18,105)	(5,138)	(23,243)
   Transactions with non-controlling interests			-	4	4	(41)	(37)
   Loss of control of subsidiaries			-		-		-
   Transfer from other components of equity to retained earnings	(11,871)	47	(11,823)	11,823	-		-
   Transfer to non-financial
   assets	(73)				(73)	(73)
   Other changes	-			(445)	(408)	(408)
   Transactions with owners－ total	(11,871)	47	(11,897)	(6,722)	(18,583)	(5,179)	(23,763)
   As of March 31, 2025	35,225	-	185,343	356,480	665,284	69,607	734,891

   For the three months ended March 31, 2026 (From January 1 to March 31, 2026)

   Total equity attributable to owners of the parent

   Other components of equity

   (Millions of yen)

   Share capital

   Share premium account

   Treasury shares

   Exchange differences on translation of foreign operations

   Effective portion of the change in the fair value of cash flow hedges

   Hedge cost

   As of January 1, 2026	74,609	75,862	(26,494)	159,993	10,879	(890)
   Profit for the period
   Other comprehensive income				(1,311)	2,618	154
   Comprehensive income for the period	-	-	-	(1,311)	2,618	154
   Repurchase of treasury shares			(1)
   Dividends
   Transactions with non-controlling interests
   Loss of control of subsidiaries
   Transfer from other components of equity to retained earnings
   Transfer to non-financial assets					(256)
   Other changes		(127)
   Transactions with owners－
   total	-	(127)	(1)	-	(256)	-
   As of March 31, 2026	74,609	75,735	(26,496)	158,681	13,241	(736)
   						(Millions of yen)

   Total equity attributable to owners of the parent Other components of equity

   Net change in financial assets

   measured at fair value through other comprehensive income

   Remeasurements of defined benefit plans

   Total

   Retained Total earnings

   Non-controlling interests

   Total equity

   As of January 1, 2026	31,377	-	201,359	49,511	374,849	73,105	447,954
   Profit for the period			-	40,153	40,153	3,052	43,206
   Other comprehensive
   income	695	(48)	2,107		2,107	70	2,177
   Comprehensive income for the period	695	(48)	2,107	40,153	42,261	3,122	45,383
   Repurchase of treasury shares			-		(1)		(1)
   Dividends			-		-	(3,635)	(3,635)
   Transactions with non-controlling interests			-	(52)	(52)	165	113
   Loss of control of subsidiaries			-		-	(12,137)	(12,137)
   Transfer from other components of equity to retained earnings	(1,002)	48	(953)	953	-		-
   Transfer to non-financial
   assets	(256)				(256)	(256)
   Other changes	-			557	429	429
   Transactions with owners－ total	(1,002)	48	(1,209)	1,458	119	(15,608)	(15,488)
   As of March 31, 2026	31,071	-	202,258	91,122	417,230	60,619	477,850

5. Condensed Quarterly Consolidated Statement of Cash Flows

   Three months ended March 31, 2025

   (From January 1

   to March 31, 2025)

   (Millions of yen) Three months ended

   March 31, 2026

   (From January 1

   to March 31, 2026)

   CASH FLOWS FROM OPERATING ACTIVITIES

   Profit before tax 21,788 62,541

   ADJUSTMENTS FOR:

   Depreciation and amortization 18,767 18,202

   Interest and dividend income (1,080) (1,031)

   Interest expense 5,217 6,237

   Share of results of associates (1,570) (2,145)

   Revaluation (gain) loss on contingent

   consideration and put option liability (41) 66

   (Gain) loss on sale and retirement of non-

   current assets	49	(29,678)
   (Gain) loss on valuation of securities	1,470	(546)
   Increase (decrease) in liability for retirement benefits	(97)	226
   Increase (decrease) in provision of business
   transformation cost	(89)	(4,081)
   Other-net	(4,620)	(10,920)

   Cash flows from operating activities before adjusting changes in working capital and

   others 39,792 38,870

   CHANGES IN WORKING CAPITAL:

   (Increase) decrease in trade and other

   receivables	118,346	120,399
   (Increase) decrease in inventories	(10,075)	(14,774)
   (Increase) decrease in other current assets	(8,790)	(10,263)
   Increase (decrease) in trade and other payables	(144,073)	(114,027)
   Increase (decrease) in other current liabilities	(16,919)	(23,064)
   Change in working capital	(61,511)	(41,729)
   Subtotal	(21,719)	(2,859)
   Interest received	1,081	1,098
   Dividends received	203	1,974
   Interest paid	(6,042)	(7,241)
   Income taxes paid	(24,457)	(25,433)
   Net cash flow from operating activities	(50,933)	(32,461)

   Three months ended March 31, 2025

   (From January 1

   to March 31, 2025)

   (Millions of yen)

   Three months ended March 31, 2026

   (From January 1

   to March 31, 2026)

   CASH FLOWS FROM INVESTING ACTIVITIES

   Payment for purchase of property, plant and

   equipment, intangible assets (3,726) (3,332)

   Proceeds from sale of property, plant and

   equipment, intangible assets 0 30,998

   Net cash (paid) received on acquisition of

   subsidiaries ― (110)

   Net cash (paid) received on sale of

   subsidiaries	-	(13,846)
   Payments for purchases of securities	(2,344)	(1,230)
   Proceeds from sales of securities	17,047	1,100
   Other-net	(148)	333
   Net cash flow from investing activities	10,827	13,913

   CASH FLOWS FROM FINANCING ACTIVITIES

   Net increase (decrease) in short-term

   borrowings	18,829	(2,173)
   Proceeds from long-term borrowings	10,000	78
   Repayment of long-term borrowings	(9,606)	(15,185)
   Repayments of lease obligations	(9,566)	(9,090)
   Payment for acquisition of interest in a subsidiary from non-controlling interests	(13)	(61)
   Repurchase of treasury shares	(0)	(1)
   Dividends paid	(18,105)	-
   Dividends paid to non-controlling interests	(5,138)	(3,635)
   Payments for settlement of derivatives	-	(8,077)
   Other-net	183	50
   Net cash flow from financing activities	(13,417)	(38,096)

   EFFECT OF EXCHANGE RATE CHANGES ON

   CASH AND CASH EQUIVALENTS (3,293) (195)

   NET INCREASE (DECREASE) IN CASH AND

   CASH EQUIVALENTS (56,816) (56,839)

   CASH AND CASH EQUIVALENTS AT

   BEGINNING OF PERIOD 371,989 295,183

   NET INCREASE (DECREASE) IN CASH AND

   CASH EQUIVALENTS INCLUDED IN ASSETS CLASSIFIED AS HELD FOR SALE	-	17,549
   CASH AND CASH EQUIVALENTS AT END OF PERIOD	315,172	255,893

6. Notes on the Condensed Quarterly Consolidated Financial Statements

No items to report

1. Description of reportable segments

   The Group's reportable segments are those for which discrete financial information is available, and for which the Board of Directors conducts regular reviews to make decisions about resources to be allocated and to assess performance.

   The Group is mainly engaged in providing communications-related services focusing on advertising, and manages its business in the categories of "Japan," "Americas," "EMEA," and "APAC."

   Accordingly, the Group has four reportable segments: "Japan," "Americas," "EMEA," and "APAC."

2. Information on reportable segments

   Segment profit is based on operating profit net of adjusting items such as M&A related items and one-off items.

   Intersegment revenues are based on the prevailing market price.

   Three months ended March 31, 2025 (From January 1 to March 31, 2025)

   (Millions of yen)

   	Japan	Americas	EMEA	APAC	Total	Eliminations/ Central costs	Consolidated
   Revenue (Note 1)	158,556 129,695 37,638 - - - - - -	93,586 76,291 13,523 - - - - - -	68,170 56,952 (1,554) - - - - - -	23,676 23,068 (3,224) - - - - - -	343,989 286,008 46,382 - - - - - -	1,170 1,279 (12,456) - - - - - -	345,160 287,287 33,926 (6,216) (335) (2,264) (49) 366 -
   Net revenue
   (Note 2)
   Segment profit (loss)
   (underlying
   operating profit
   (loss)) (Note 3)
   (Adjusting items)
   Amortization of
   intangible assets
   incurred in
   acquisitions
   Selling, general and
   administrative
   expenses
   Business
   transformation
   cost
   Loss on sale and
   retirement of non-
   current assets
   Other income
   Other expenses
   Operating profit	-	-	-	-	-	-	25,426
   Share of results of associates	-	-	-	-	-	-	1,570
   Gain on sales of shares of associates	-	-	-	-	-	-	12
   Finance income	-	-	-	-	-	-	1,804
   Finance costs	-	-	-	-	-	-	(7,025)
   Profit before tax	-	-	-	-	-	-	21,788
   Segment assets (Note 4)	1,130,612	1,263,638	629,455	290,721	3,314,427	(55,485)	3,258,942

   Three months ended March 31, 2026 (From January 1 to March 31, 2026)

   (Millions of yen)

   	Japan	Americas	EMEA	APAC	Total	Eliminations/ Central costs	Consolidated
   Revenue (Note 1)	158,848 128,873 39,754 - - - - - -	91,213 76,443 12,280 - - - - - -	81,298 65,501 2,547 - - - - - -	24,436 22,771 (3,174) - - - - - -	355,797 293,590 51,408 - - - - - -	1,332 1,474 (13,596) - - - - - -	357,129 295,064 37,812 (6,098) (33) (3,581) 29,678 7,184 (1)
   Net revenue
   (Note 2)
   Segment profit (loss)
   (underlying
   operating profit
   (loss)) (Note 3)
   (Adjusting items)
   Amortization of
   intangible assets
   incurred in
   acquisitions
   Selling, general and
   administrative
   expenses
   Business
   transformation
   cost
   Gain on sale and
   retirement of non-
   current assets
   Other income
   Other expenses
   Operating profit	-	-	-	-	-	-	64,958
   Share of results of associates	-	-	-	-	-	-	2,145
   Finance income	-	-	-	-	-	-	1,888
   Finance costs	-	-	-	-	-	-	(6,450)
   Profit before tax	-	-	-	-	-	-	62,541
   Segment assets (Note 4)	1,151,599	1,073,860	633,494	317,249	3,176,203	(131,467)	3,044,735

   (Notes) 1. Eliminations/central costs for revenue are due to eliminations of revenue associated with central functions and intersegment transactions. Revenue from central functions was 1,793 million yen in the three months ended March 31, 2025, and 1,720 million yen in the three months ended March 31, 2026.

   1. Eliminations/central costs for net revenue are due to eliminations of net revenue associated with central functions and intersegment transactions. Net revenue from central functions was 1,732 million yen in the three months ended March 31, 2025, and 1,720 million yen in the three months ended March 31, 2026.

   2. Eliminations/central costs for segment profit (underlying operating profit) are primarily expenses associated with central functions.

   3. Eliminations/central costs for segment assets are due primarily to central assets and eliminations of intersegment transactions.

No items to report

Independent Auditor's Report on Review of Quarterly Consolidated Financial Statements

May 15, 2026

To the Board of Directors of Dentsu Group Inc.:

KPMG AZSA LLC Tokyo Office, Japan

Isao Kamizuka

Designated Limited Liability Partner Engagement Partner

Certified Public Accountant

Shuji Ezawa

Designated Limited Liability Partner Engagement Partner

Certified Public Accountant

Kentaro Hayashi

Designated Limited Liability Partner Engagement Partner

Certified Public Accountant

We have reviewed the accompanying condensed quarterly consolidated financial statements of Dentsu Group Inc. ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group") provided in the "Attached Documents" in the Quarterly Earning Reports, which comprise the condensed quarterly consolidated statement of financial position as at March 31, 2026, the condensed quarterly consolidated statements of income, comprehensive income, changes in equity and cash flows for the three-month period then ended, and notes on the condensed quarterly consolidated financial statements.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed quarterly consolidated financial statements are not prepared, in all material respects, in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. ("the Standard") (applying the omissions prescribed in Article 5(5) of the Standard).

We conducted our review in accordance with interim review standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Review of the Condensed Quarterly Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements in Japan (including those that are relevant to audits of the financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Management is responsible for the preparation and presentation of the condensed quarterly consolidated financial statements in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard), and for such internal control as management determines is necessary to enable the preparation of the condensed quarterly consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the condensed quarterly consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard) and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Executive Officers' and Directors' performance of their duties with regard to the design, implementation and maintenance of the Group's financial reporting process.

Our responsibility is to express a conclusion on these condensed quarterly consolidated financial statements based on our review in our report on the review of interim consolidated financial statements.

As part of our review in accordance with interim review standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the review. We also:

• Make inquiries, primarily of management and persons responsible for financial and accounting matters, and apply analytical and other review procedures. An interim review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in Japan.

• Conclude, based on the evidence obtained, that nothing has come to our attention that causes us to believe that the condensed quarterly consolidated financial statements are not prepared in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard), if a material uncertainty relating to events or conditions comes to our attention that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report on the review of condensed quarterly consolidated financial statements to the related disclosures in the condensed quarterly consolidated financial statements or, if such disclosures are inadequate, to express a qualified conclusion or an adverse conclusion. Our conclusions are based on the evidence obtained up to the date of our report on the review of condensed quarterly consolidated financial statements; however, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate that nothing has come to our attention that causes us to believe that the presentation and disclosures in the condensed quarterly consolidated financial statements are not prepared in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard).

• Obtain sufficient appropriate evidence regarding the financial information of the entities or business activities within the Group as a basis for forming a conclusion on the condensed quarterly consolidated financial statements. We are responsible for the direction, supervision and review of the interim review on the condensed quarterly consolidated financial statements. We remain solely responsible for our review conclusion.

We communicate with the Audit Committee regarding, the planned scope and timing of the review, significant review findings that we identify during our review.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

The Independent Auditor's Report herein is the English translation of the Independent Auditor's Report on Review of Quarterly Consolidated Financial Statements originally issued in the Japanese language for the conveniences of the reader.

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