Financial Summary for the Nine Months Ended December 31, 2011

Transcription

1 Financial Summary for the Nine Months Ended 2011 (from April 1 to 2011) February 14, 2012 Dentsu Inc. Cautionary Statement This document contains forward-looking statements regarding the intent, belief or current expectations of Dentsu Inc. or its management with respect to the results of operations and financial position of the Dentsu Group. Such forward-looking statements, based on information known to the management as of February 14, 2012, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ from those in the forward-looking statements as a result of various factors. Unless otherwise stated, the following discussion is based on the Dentsu Group s consolidated financial statements prepared in accordance with Generally Accepted Accounting Principles in Japan. Financial Summary for the Nine Months Ended Dec. 31,

2 Consolidated Results Financial Summary for the Nine Months Ended Dec. 31,

3 Consolidated Financial Results 2010 Note: With regard to Dentsu's share of net income of Publicis Groupe S.A. and amortization of goodwill, the results for the nine months December 31 reflect only the amount Publicis posted during its 1H (first six months) for each year. * Operating margin: operating income gross profit x Net sales 1,348,644 1,357, % Gross profit 228, , % Gross profit margin 17.0% 17.3% +0.3ppts SG&A 193, , % Operating income 35,308 30, % Operating margin* 15.4% 13.1% -2.3ppts Ordinary income 33,629 37, % Income before income taxes and minority interests 15,592 32, % Net income 8,710 13, % Comprehensive income 4,715 12, % Financial Summary for the Nine Months Ended Dec. 31, 2011

4 Quarterly Consolidated Financial Results FY2011 1Q 2Q 3Q Net sales 402, % 461, % 493, % Gross profit 68, % 81, % 85, % Gross profit margin 16.9% +0.7ppts 17.6% +0.3ppts 17.3% +0.1ppts SG&A 63, % 70, % 69, % Operating income 4, % 10, % 16, % Operating margin 6.2% -4.1ppts 12.7% -0.8ppts 18.9% -2.5ppts Ordinary income 6, % 13, % 17, % Income before income taxes and minority interests 3, % 11, % 16, % Net income 1, % 6, % 5, % Note: Dentsu's share of net income of Publicis Groupe S.A. and amortization of goodwill for the Publicis Groupe s 1H are included in the 2Q financial results, but not in the 1Q or 3Q results. Financial Summary for the Nine Months Ended Dec. 31,

5 Consolidated Net Sales <1> Reportable Segments Key Subsidiaries Advertising Information Services (95.8% of total) (3.2% of total) Other Businesses (1.0% of total) ,315, % 43, % 13, % Total 1,373, % Eliminations (16,097) - Advertising 5 regional Dentsu subsidiaries 81, % Dentsu Tec 100, % cci 46, % Dentsu Holdings USA 54,977 * +32.1% Beijing Dentsu 44, % Information Services 2011 ISID 43,844 * +4.0% Consolidated Net Sales 1,357, % (Notes) 1. Sales of subsidiaries include internal transactions after group-wide unified accounting treatments were applied. 2. The 5 regional Dentsu subsidiaries are Dentsu East Japan, Dentsu West Japan, Dentsu Kyushu, Dentsu Hokkaido and Dentsu Okinawa. * These figures include the net sales of each company s respective subsidiaries. Financial Summary for the Nine Months Ended Dec. 31,

6 Consolidated Net Sales <2> Breakdown by Geographic Segment 2011 % of Total The Americas 60, % 4.4% Europe 11, % 0.8% China 51, % 3.8% Asia (excl. China) 45, % 3.3% Eliminations (56) - - Overseas Total 167, % 12.3% Japan 1,195, % 87.7% Total 1,363, % Eliminations (6,424) - - Consolidated Net Sales 1,357, % - Note: In the case of subsidiaries located in countries other than Japan, the nine-month period refers to the period from January to September, Financial Summary for the Nine Months Ended Dec. 31,

7 Consolidated Operating Income Gross profit , , % Personnel expenses 125, , % Salaries 104, , % Others 21,601 23, % Operating expenses 56,194 60, % Depreciation and amortization 11,411 10, % SG&A 193, , % Operating income 35,308 30, % Operating margin 15.4% 13.1% -2.3 ppts Financial Summary for the Nine Months Ended Dec. 31,

8 Consolidated Ordinary Income and Net Income Operating income 35,308 30, % Non-operating income 5,125 10, % Non-operating expenses 6,804 3, % Net non-operating income (loss) (1,678) 6,586 - Ordinary income 33,629 37, % Extraordinary income 2, % Extraordinary loss 20,817 5, % Net extraordinary income (loss) (18,037) (5,106) - Income before income taxes and minority interests 15,592 32, % Income before minority interests 8,737 14, % Net income 8,710 13, % Note: With regard to Dentsu's share of net income of Publicis Groupe S.A. and amortization of goodwill, the results for the nine months December 31 reflect only the amount Publicis posted during its 1H (first six months) for each year. Financial Summary for the Nine Months Ended Dec. 31,

9 Comprehensive Income Income before minority interests 8,737 14, % Other comprehensive income (loss) (4,022) (1,162) - Valuation difference on available-for-sale securities 1,379 2, % Deferred gains or losses on hedges (2,513) (826) - Foreign currency translation adjustment Share of other comprehensive income of associates accounted for using equity method (2,910) (3,686) , times Comprehensive income 4,715 12, % (Breakdown) Comprehensive income attributable to: Owners of the parent 4,906 12, % Minority interests (191) Financial Summary for the Nine Months Ended Dec. 31,

10 Non-Consolidated Results Financial Summary for the Nine Months Ended Dec. 31,

11 Non-Consolidated Financial Results Net sales 1,043,524 1,028, % Gross profit 141, , % Gross profit margin 13.6% 13.6% +0.0 SG&A 117, , % Operating income 24,195 20, % Operating margin 17.1% 14.3% -2.8 Ordinary income 28,078 28, % Income before income taxes 15,341 24, % Net income 11,027 12, % ppts ppts Financial Summary for the Nine Months Ended Dec. 31,

12 Quarterly Non-Consolidated Financial Results FY2011 1Q 2Q 3Q Net sales 301, % 347, % 379, % Gross profit 40, % 47, % 51, % Gross profit margin 13.4% +0.5ppts 13.7% -0.1ppts 13.6% -0.4 SG&A 36, % 42, % 40, % Operating income 3, % 4, % 11, % Operating margin 8.7% -4.9 ppts 10.2% -3.0ppts 22.5% -0.9 Ordinary income 9, % 5, % 13, % Income before income taxes 7, % 5,020-12, % Net income 5, % 2, times 4, % ppts ppts Financial Summary for the Nine Months Ended Dec. 31,

13 Non-Consolidated Net Sales by Business Category Business Category Net Sales Net Sales FY2011 1Q 2Q 3Q Total Net Sales Net Sales Newspapers 24, % 26, % 30, % 81, % Magazines 6, % 9, % 10, % 26, % Radio 4, % 4, % 4, % 13, % Television 150, % 160, % 183, % 494, % Time 66, % 73, % 75, % 215, % Spot 83, % 86, % 107, % 278, % Interactive Media 9, % 11, % 14, % 35, % OOH Media 10, % 11, % 12, % 34, % Creative 37, % 47, % 45, % 131, % Marketing/Promotion 34, % 47, % 46, % 129, % Content Services 15, % 21, % 23, % 60, % Others 5, % 7, % 7, % 20, % Total 301, % 347, % 379, % 1,028, % Financial Summary for the Nine Months Ended Dec. 31,

14 Non-Consolidated Net Sales by Industry Industry FY2011 1Q 2Q 3Q Total Net Sales Net Sales Net Sales Net Sales Information/Communications 38, % 50, % 50, % 139, % Beverages/Cigarettes 34, % 40, % 40, % 115, % Cosmetics/Toiletries 31, % 32, % 32, % 96, % Distribution/Retailing 19, % 22, % 24, % 67, % Finance/Insurance 21, % 21, % 23, % 66, % Foodstuffs 19, % 21, % 20, % 61, % Home Electric Appliances/ AV Equipment 16, % 16, % 22, % 55, % Pharmaceuticals/Medical Supplies 16, % 16, % 20, % 53, % Automobiles/Related Products 8, % 16, % 24, % 48, % Food Services/Other Services 13, % 15, % 18, % 47, % Hobbies/Sporting Goods 11, % 15, % 19, % 45, % Government/Organizations 11, % 15, % 15, % 42, % Transportation/Leisure 13, % 12, % 13, % 40, % Real Estate/Housing Facilities 9, % 11, % 10, % 31, % Apparel/Fashion, Accessories/ Personal Items 8, % 9, % 12, % 30, % Others* 26, % 28, % 30, % 85, % Total 301, % 347, % 379, % 1,028, % * Others is the total of industries not within the top fifteen rankings for the nine-month period Dec. 31, Financial Summary for the Nine Months Ended Dec. 31,

15 Non-Consolidated Operating Income Gross profit , , % Personnel expenses 77,906 80, % Salaries 63,146 64, % Others 14,759 15, % Operating expenses 32,689 33, % Depreciation 6,921 6, % SG&A 117, , % Operating income 24,195 20, % Operating margin 17.1% 14.3% -2.8 ppts Financial Summary for the Nine Months Ended Dec. 31,

16 Non-Consolidated Ordinary Income and Net Income Operating income 24,195 20, % Non-operating income 10,251 11, % Non-operating expenses 6,367 3, % Net non-operating income 3,883 8, % Ordinary income 28,078 28, % Extraordinary income 7,575 1, % Extraordinary loss 20,312 4, % Net extraordinary income (loss) (12,737) (3,147) - Income before income taxes 15,341 24, % Net income 11,027 12, % Financial Summary for the Nine Months Ended Dec. 31,

17 Outlook for Full-Term FY2011 Financial Summary for the Nine Months Ended Dec. 31,

18 FY2011 Consolidated Results Forecast FY2010 Actual FY2011 Forecast Against forecast* Net sales 1,833,449 1,870, % - Gross profit 317, , % - Gross profit margin 17.3% 17.6% +0.3 ppts - SG&A 266, , % - Operating income 50,937 47, % - Operating margin 16.0% 14.4% -1.6 ppts - Ordinary income 54,166 57, % - Income before income taxes 35,379 50, % - Net income 21,635 22, % -16.1% * Against forecast = differences from the forecast announced on November 9, 2011 Financial Summary for the Nine Months Ended Dec. 31,

19 FY2011 Non-Consolidated Results Forecast FY2010 Actual FY2011 Forecast Against forecast* Net sales 1,396,798 1,405, % - Gross profit 193, , % - Gross profit margin 13.8% 13.9% +0.1 ppts - SG&A 159, , % - Operating income 33,799 31, % - Operating margin 17.5% 16.3% ppts - Ordinary income 40,312 40, % - Income before income taxes 26,551 35, % - Net income 17,471 16, % -17.0% * Against forecast = differences from the forecast announced on November 9, 2011 Financial Summary for the Nine Months Ended Dec. 31,