Strategy

Consolidated Operating Highlights (IFRS)

Dentsu Inc. and Consolidated Subsidiaries

  Consolidated (Financial reporting basis) IFRS Consolidated (Calendar year basis (pro forma)) IFRS
  2015/3 2015/12 2014 2015 2016
Turnover 4,642,390 4,513,955 4,642,901 4,990,854 4,924,933
Revenue 728,626 706,469 725,886 818,566 838,359
Gross profit 676,925 669,489 676,882 761,996 789,043
Organic gross profit growth rate(1) Consolidated 5.8% 7.0% 5.1%
Organic gross profit growth rate Japan 2.2% 3.9% 4.5%
Organic gross profit growth rate International 10.3% 9.4% 10.3% 9.4% 5.7%
Operating profit 132,305 107,265 137,558 128,212 137,681
Underlying operating profit(2) 131,937 133,328 133,402 160,438 166,565
Operating margin(3) Consolidated 19.5% 19.9% 19.7% 21.1% 21.1%
Operating margin Japan 23.9% 24.7% 24.2% 26.0% 26.8%
Operating margin International 15.3% 16.9% 15.3% 16.9% 16.2%
Profit for the year attributable to owners of the parent 79,846 72,653 81,409 83,090 83,501
Underlying net profit(4) 92,875 94,368 89,179 113,388 112,972
Basic earnings per share 276.89円 254.05円 282.31円 289.95円 292.85円
Basic underlying net profit per share 322.08円 329.98円 309.26円 395.67円 396.20円
Return on equity (ROE)(5) 8.1% 6.8% 8.2% 7.7% 8.3%
Underlying ROE 9.4% 8.8% 9.0% 10.6% 11.3%
ROA(6) 4.6% 3.4% 4.4%
Ratio of equity attributable to owners of the parent(7) 34.2% 34.8% 34.8% 29.6%
Cash dividend per share 55円 75円 55円 75円 85円
Dividend payout ratio(8) 19.9% 29.5% 19.5% 25.9% 29.0%
Underlying dividend payout ratio 17.1% 22.7% 17.8% 19.0% 21.5%
  • (1) Organic gross profit growth rate represents the constant currency year-on-year growth after adjusting for the effect of business acquired or disposed of since the beginning of the previous year
  • (2)Underlying operating profit is a KPI to measure recurring business performance which is calculated as operating profit added with amortization of M&A related intangible assets, acquisition costs and one-off items such as impairment loss and gain/loss on sales of non-current assets
  • (3) Underlying operating profit ÷ Gross profit × 100
  • (4) Underlying net profit (attributable to owners of the parent): KPI to measure recurring net profit attributable to owners of the parent which is calculated as net profit (attributable to owners of the parent) added with adjustment items related to operating profit, revaluation of earnout liabilities/M&A related put-option liabilities, tax-related and NCI profit-related and other oneoff items
  • (5) ROE (IFRS) = Profit for the year attributable to owners of the parent ÷ Average equity attributable to owners of the parent based on equity at the beginning and end of the fiscal year × 100
  • (6) ROA (IFRS) = Profit before tax ÷ Average total assets based on total assets at the beginning and end of the fiscal year × 100
  • (7) Ratio of equity attributable to owners of the parent = Equity attributable to owners of the parent÷Total assets
  • (8) Dividend payout ratio = Cash dividend per share ÷ Basic earnings per share × 100

Change in fiscal period

Effective from fiscal 2015, the Company and its subsidiaries with fiscal year-ends other than December 31 have changed their fiscal year-ends to December 31. As a result of this change, the Group’s consolidated fiscal year-end date has been changed from March 31 to December 31, and fiscal 2015 is the nine-month period from April 1, 2015 to December 31, 2015. However, since the fiscal year-end date of Dentsu Aegis Network Ltd. and its subsidiaries, which operate the Group’s international business, was already December 31, the financial results of these companies for the twelve-month period from January 1, 2015 to December 31, 2015 have been consolidated into the Group’s consolidated financial results. [On a financial reporting basis for 2015/12]

As reference figures for the purpose of making comparisons, figures calculated on the assumption that the Group’s accounting periods for both fiscal 2014 and fiscal 2015 covered January 1 to December 31 are provided. [On a calendar year basis] Figures for fiscal 2016 from the period covering January 1 to December 31 are provided on a financial reporting basis.

Financial reporting basis (fiscal 2014 and 2015)

  2014 2015
  Jan.
-
Mar.
Apr.

Jun.
Jul.

Sep.
Oct.

Dec
Jan.
-
Mar.
Apr.

Jun.
Jul.

Sep.
Oct.

Dec
Japan
business
  2015/3
(Financial
reporting basis)
  2015/12
(Financial
reporting basis)
International
business
   
  • 2015/3: Japan business Apr.–Mar. (twelve months) + International business Jan.–Dec. (twelve months)
  • 2015/12: Japan business Apr.–Dec. (nine months) + International business Jan.–Dec. (twelve months)
  • Note: Financial report for fiscal 2016 is provided on a calendar year basis.

Calendar year basis (pro forma)

  2014and2015 2016
  Jan.
-
Mar.
Apr.

Jun.
Jul.

Sep.
Oct.

Dec
Jan.
-
Mar.
Apr.

Jun.
Jul.

Sep.
Oct.

Dec
Japan
business
2014 & 2015
(Pro forma basis)
2016/12
(Financial
reporting basis)
International
business
  • 2014: Japan business Jan.–Dec. (twelve months) + International business Jan.–Dec. (twelve months)
  • 2015: Japan business Jan.–Dec. (twelve months) + International business Jan.–Dec. (twelve months)
  • 2016/12: Japan business Jan.–Dec. (twelve months) + International business Jan.–Dec. (twelve months)
  • Note: 2014 and 2015 are reported on a pro forma basis, and 2016/12 is reported on a financial reporting basis.
  • Revenue

    Revenue
  • Gross Profit

    Gross Profit
  • Organic Gross Profit Growth Rate

    Organic Gross Profit Growth Rate
  • Operating Profit

    Operating Profit
  • Underlying Operating Profit

    Underlying Operating Profit
  • Operating Margin

    Operating Margin
  • Profit for the Year Attributable to Owners of the Parent

    Profit for the Year Attributable to Owners of the Parent
  • Underlying Net Profit

    Underlying Net Profit
  • Basic Earnings per Share

    Basic Earnings per Share
  • Basic Underlying Net Profit per Share

    Basic Underlying Net Profit per Share
  • Return on Equity (ROE)

    Return on Equity (ROE)
  • Underlying ROE

    Underlying ROE
  • Ratio of Equity Attributable to Owners of the Parent

    Ratio of Equity Attributable to Owners of the Parent
  • Cash Dividend per Share/Dividend Payout Ratio

    Cash Dividend per Share/Dividend Payout Ratio
  • Underlying Dividend Payout Ratio

    Underlying Dividend Payout Ratio

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