The Dentsu Group's
Future Management Policies

Cost Control: For a Robust Earnings Structure

  • Recognizing that increased profitability is also indispensable in achieving the numerical targets specified in the Medium-term Management Plan, we continued to work on cost control measures throughout fiscal 2009.
  • In the area of operating expenses, we defined items for substantial reduction-such as travel expenses and transportation expenses-and also set a quantitative reduction goal. As a result, we reduced the operating expenses for fiscal 2009 by 9.8 billion yen on a non-consolidated basis, and 12.7 billion yen on a consolidated basis. The ratio of operating expenses to gross profit also dropped from 29.2% in fiscal 2008 to 26.7% in fiscal 2009.
  • At the same time, we strengthened our revenue management per client or project to make sure that everybody understood the significance of ensuring operating income.
  • We also optimized buy-ups and other forms of sourcing to secure gross profit.
  • All this started to pay off in fiscal 2009. In the 2nd half, in particular, despite a decrease in revenue, we registered a positive operating income both on a consolidated and non-consolidated basis. In the future, we will continue to carry out appropriate business administration by implementing controls to prevent any backlash increase in operating expenses, while securing the strategic operating expenses required for further growth.
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