Financial Summary for the Nine Months Ended December 31, 2009 (From April 1 to December 31, 2009) February 10, 2010 Dentsu Inc.

Transcription

1 Financial Summary for the Nine Months Ended December 31, 2009 (From April 1 to December 31, 2009) February 10, 2010 Dentsu Inc.

2 1 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 condition of the Dentsu Group. Such forward-looking statements, based on information known to the management as of February 10, 2010, are not guarantees of future performance and involve risks and uncertainties, and 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.

3 Consolidated Results 2

4 3 Consolidated Financial Results December 31, 2008 December 31, 2009 Net sales 1,430,226 1,213, % Gross profit 233, , % Gross profit margin 16.3% 17.3% +1.0 SG&A 204, , % Operating income 28,866 18, % * Operating margin 12.4% 9.0% -3.4 Ordinary income 33,028 22, % Income before income taxes 16,002 21, % Net income 4,142 19, % Note: With regard to the equity in earnings of Publicis Groupe, results for nine months December 31, 2009 reflect only the amount posted during 1H (6 months). *Operating margin = Operating income Gross profit 100

5 4 Transition of Quarterly Consolidated Financial Results FY2009 1Q 2Q 3Q Net sales 381, % 404, % 427, % Gross profit 63, % 71, % 75, % Gross Profit Margin 16.6% % % +1.5 SG&A 61, % 66, % 62, % Operating income 1, % 5, % 12, % Operating margin 2.2% % % +1.7 Ordinary income 2, % 7, % 12, % Income before income taxes 2, % 7, % 11, times Net income 1, % 5, % 12,367 - Note 1: The above figures are announced in quarterly reports. Note 2: Although the equity in earnings of Publicis Groupe was not posted in 1Q and 3Q, that of 1H was posted in 2Q.

6 5 Consolidated Net Sales < 1 > Advertising Breakdown by Business Segment (95.4% of total) Information Services (3.3% of total) Other Businesses (1.3% of total) December 31, ,174, % 40, % 16, % Key Consolidated Subsidiaries Advertising December 31, Regional Dentsu 71, % Dentsu Tec 94, % cci 38, % Dentsu Holdings USA (consolidated) 17, % Beijing Dentsu 32, % Total 1,231, % Eliminations Consolidated Net Sales (17,475) - 1,213, % Information Services ISID (consolidated) 40, % Note 1: Sales of subsidiaries include internal transactions. Note 2: 5 Regional Dentsu includes Dentsu East Japan, Dentsu West Japan, Dentsu Kyushu, Dentsu Hokkaido and Dentsu Okinawa.

7 6 Consolidated Net Sales < 2 > Breakdown by Geographic Segment December 31, 2009 % of Total Americas 19, % 1.6% Europe 7, % 0.6% China 37, % 3.1% Asia (excl. China) 26, % 2.2% Eliminations (51) - - Overseas Total 91, % 7.5% Japan 1,126, % 92.5% Total 1,217, % Eliminations (4,164) - - Consolidated Net Sales 1,213, % -

8 7 Consolidated Operating Income Gross profit December 31, 2008 December 31, , , % Personnel expenses 122, , % Salaries 102,052 99, % Others 20,596 21, % Operating expenses 70,139 58, % Depreciation and amortization 11,854 11, % SG&A 204, , % Operating income 28,866 18, % Operating margin 12.4% 9.0% -3.4

9 8 Consolidated Ordinary Income and Net Income December 31, 2008 December 31, 2009 Operating income 28,866 18, % Non-operating income 6,917 6, % Non-operating expense 2,755 3, % Net non-operating income 4,161 3, % Ordinary income 33,028 22, % Extraordinary income 1,422 1, % Extraordinary loss 18,448 2, % Net extraordinary income (loss) (17,026) (1,012) - Income before income taxes 16,002 21, % Income taxes 11,741 2, % Minority interests 118 (917) - Net income 4,142 19, % Note: With regard to the equity in earnings of Publicis Groupe, results for nine months December 31, 2009 reflect only the amount posted during 1H (6 months).

10 Non-Consolidated Results 9

11 10 Non-Consolidated Financial Results December 31, 2008 December 31, 2009 Net sales 1,099, , % Gross profit 145, , % Gross profit margin 13.3% 13.9% +0.6 SG&A 127, , % Operating income 18,087 16, % Operating margin 12.4% 12.3% -0.1 Ordinary income 28,463 23, % Income before income taxes 12,939 23, % Net income 5,183 22, %

12 11 Transition of Quarterly Non-Consolidated Financial Results FY2009 1Q 2Q 3Q Net sales 306, % 311, % 343, % Gross profit 40, % 44, % 48, % Gross Profit Margin 13.3% % % +1.3 SG&A 37, % 41, % 38, % Operating income 3, % 2, % 9, % Operating margin 9.3% % % +5.7 Ordinary income 10, % 3, % 10, % Income before income taxes 10, % 2, % 10,281 - Net income 8, % 1, % 12,122 - Note: Non-consolidated financial results are in accordance with the established quarterly report guidelines.

13 12 Non-Consolidated Net Sales by Business Category (Millions of yen, %) Business Category Net Sales Net Sales FY2009 1Q 2Q 3Q Total Net Sales Net Sales Newspapers 27, , , , Magazines 10, , , , Radio 4, , , , Television 153, , , , Time 70, , , , Spot 83, , , , Interactive Media 6, , , , OOH Media 11, , , , Creative 39, , , , Marketing/Promotion 32, , , , Content Services 16, , , , Others 4, , , , Total 306, , , ,

14 Non-Consolidated Net Sales by Industry (Millions of yen, %) Industry Net Sales Net Sales FY2009 1Q 2Q 3Q Total Net Sales Net Sales Information / Communications 42, , , , Beverages / Cigarettes 38, , , , Cosmetics / Toiletries 25, , , , Foodstuffs 23, , , , Finance / Insuarance 18, , , , Pharmaceuticals /Medical Supplies 19, , , , Distribution / Retailing 17, , , , Hobbies / Sporting Goods 17, , , , Automobiles / Related Products 15, , , , Food Services / Other Services 15, , , , Others* 72, , , , Total 306, , , , * Others refers to the FY2009 1Q to 3Q total of industries other than top ten industries. 13

15 14 Non-Consolidated Operating Income Gross profit December 31, 2008 December 31, , , % Personnel expenses 76,860 76, % Salaries 63,048 61, % Others 13,811 14, % Operating expenses 41,531 32, % Depreciation and amortization 9,214 7, % SG&A 127, , % Operating income 18,087 16, % Operating margin 12.4% 12.3% -0.1

16 15 Non-Consolidated Ordinary Income and Net Income December 31, 2008 December 31, 2009 Operating income 18,087 16, % Non-operating income 12,822 10, % Non-operating expense 2,446 2, % Net non-operating income 10,376 7, % Ordinary income 28,463 23, % Extraordinary income 1,328 1, % Extraordinary loss 16,852 1, % Net extraordinary income (loss) (15,523) (843) - Income before income taxes 12,939 23, % Income taxes 7,756 1, % Net income 5,183 22, %

17 Outlook for Full-Term FY

18 17 FY2009 Consolidated Results Forecast FY2008 Actual FY2009 Forecast from previous forecast* Net sales 1,887,170 1,636, % +1.6% Gross profit 314, , % +1.9% Gross Profit Margin 16.7% 17.3% SG&A 271, , % -0.5% Operating income 43,184 25, % +33.5% Operating margin 13.7% 9.1% Ordinary income 53,363 33, % +21.0% Income (loss) before income taxes (4,972) 28, % Net income (loss) (20,453) 24, % Note: With regard to forecasts, our forecast assumes equity in 2H earnings from an equity-method affiliate, Publicis Groupe of 3,921 million (after excluding 1,192 million for the amortization of goodwill), the equivalent amount recorded for its fiscal year December 31, 2008, as Publicis Groupe does not disclose its performance forecasts for the current fiscal year. The exchange rate used here is 1euro= 130.2, the approximate average rate of exchange from January to December * from previous forecast indicates differences from the outlook for full-term FY2009 announced November 6 th, 2009.

19 18 FY2009 Non-Consolidated Results Forecast FY2008 Actual FY2009 Forecast from previous forecast* Net sales 1,447,410 1,276, % +1.9% Gross profit 192, , % +2.0% Gross Profit Margin 13.3% 13.7% SG&A 168, , % -0.4% Operating income 23,870 18, % +28.0% Operating margin 12.4% 10.5% Ordinary income 34,585 26, % +15.7% Income (loss) before income taxes (25,466) 22, % Net income (loss) (32,771) 20, % * from previous forecast indicates differences from the outlook for full-term FY2009 announced November 6 th,2009.