The Dentsu Group's Business Promotion Structure

The scale and business structure of the Dentsu Group changed considerably with the acquisition of the Aegis Group (currently, “Aegis Media”). Please find below a summary of the Group's new business structure by region, its management structure and solid position within the industry.

1. The Dentsu Group's Regional Business Structure

The new Dentsu Group, with the integration of Aegis Media, is a global communications group providing services in more than 110 countries and political regions through more than 300 offices.

Despite a more diversified regional business structure for the Group now that the acquisition of the Aegis Group is complete, Japan remains the largest market. Representing 56% of gross profit1, the Japanese market is positioned as the business platform at the Group's core. The remaining 44% comes from outside Japan, with Europe–Middle East–Africa (EMEA2) accounting for 18%, the Americas3 14%, and Asia Pacific (APAC4) 12%.

The Dentsu Group after the Acquisition of the Aegis Group*1 Gross Profit Percentage Mix by Major Region2
1
Simple combined consolidated total of gross profit for Dentsu and the Aegis Group in fiscal 2012
2
Europe, Middle East and Africa
3
North, Central and South America
4
Asia Pacific

▲ Page Top

2. Management Structure Following the Acquisition of the Aegis Group

Given the diversification of its business portfolio and the significance of Japan to its top line, Dentsu broadly separated Group operations into domestic and overseas segments. Executive officers have been assigned oversight authority for domestic operations and overseas operations, respectively, creating a global team to lead the Group forward in its overall business pursuits. Also, seeking to realize growth under the new global structure, Dentsu established Dentsu Aegis Network Ltd. as a new overseas headquarters. Dentsu Network and Aegis Media will continue to operate as separate entities, but they will be governed by Dentsu Aegis Network's management team and the Board of Directors.

Management Structure Following the Acquisition of the Aegis  Group

▲ Page Top

3. The Dentsu Group's Position in the Advertising Communications Industry

The ad agency rankings of the invigorated Dentsu Group have not changed. We retain our No. 1 position in Japan5 and the No. 5 spot in the world6. However, in terms of media billings, we are now No. 3, reinforcing our profile as a global media agency. In addition, we have more than 11,000 clients on a global basis and serve more than 70 of the top 100 global advertisers. Our overseas business has grown significantly, accounting for 44% of gross profit, from 18% prior to the acquisition of the Aegis Group, with 23% of gross profit coming from the digital domain. With diverse specialization, the more than 37,000 employees7 of the Group will continue to hone their intelligence and creativity and will work together across national boundaries and areas of business, with an emphasis on sharing and integrating services, developing and offering innovative services, and creating opportunities for joint solutions to the problems facing client companies.

5
Based on consolidated net sales in Japan in fiscal 2012
6
Advertising Age, April 29, 2013 edition
7
As of March 2013
No.5 Ad Agency Group 2012 Revenue Ranking(8)
8
Advertising Age, April 29, 2013 edition
9
Including the Aegis Group
No.3 in Media Billings 2011 Billing Ranking(10)
10
Billings of WPP, PUB, OMC, Aegis Group, IPG and HAV are based on RECMA Overall Billings 2011. Media billings of Dentsu are based on its non-consolidated media net sales (net sales from television, newspapers, magazines, radio, interactive media and OOH media) in CY2011.
Source: RECMA Overall Billings 2011, issued by Dentsu
11
Calculated by the simple sum of Aegis's billings and Dentsu's non-consolidated media net sales at the rate of ¥79.8 = US$1 (average currency rate for CY2011)
Overview of the Dentsu Group after the Acquisition of Aegis Group
No.1 in Japan with +60% larger than No.2 Player
3rd largest agency group in the world by media billings
11,000+ clients globally, serving 70+ out of top 100 global advertisers
~44% of gross profit from outside of Japan
~23% of gross profit from digital
Approximately 37,000 employees
12
Based on consolidated net sales in Japan in fiscal 2012
13
Calculated by the simple sum of Aegis's billings and Dentsu's non-consolidated media net sales at the rate of ¥79.8 = US$1 (average currency rate for CY2011)
14
Advertising Age, December 2012
15
Simple combined consolidated total of gross profit for Dentsu and the Aegis Group in fiscal 2012
16
As of March 2013

▲ Page Top