Financial Summary for 1H/FY2009
(from April 1 to September 30, 2009)
- I am Shoichi Nakamoto, Senior Vice President and CFO of Dentsu. In this presentation, I would like to share with you our half year results and the full-term outlook.
- Although signs of improvement in exports and production show that the economy is on the course of gradual recovery from the recession triggered by the financial crisis, uncertainty remained in the Japanese economy for the six months ended September 30, 2009, as indicated by the still stagnant employment situation.
- The Dentsu Group's business environment has been extremely difficult, as many advertisers continued to pull back on ad spending. Against such a backdrop, the Group pursued aggressive business activities, deploying every available resource to provide integrated solutions, including a multifaceted marketing approach to events such as the "13th FINA World Championships Rome 2009" and the "12th IAAF World Championships in Athletics, Berlin 2009™." As a result, the Group was able to exceed our initial forecast on operating income, ordinary income and net income.
- In summary, the Group posted consolidated billings (net sales) of 785,858 million yen
(-17.2% compared to the same period of the previous fiscal year), gross profit of 134,923 million yen (-13.8%) and a gross profit margin of 17.2% which we were able to improve by 0.7 percentage points on a year-on-year basis.
- Owing to our fundamental cost-cutting efforts that we started last year, the Group's SG&A, or selling, general and administrative expenses, was reduced by 10.5 billion yen, or 7.6% from a year ago to 128 billion yen. Compared with the initial forecast, this is a decrease of 4.3 billion yen, or a 3.3% decline.
- As a result, the Group posted operating income of 6.8 billion yen, 61.6% down from a year ago yet 58.9% up from our initial forecast. Similarly, ordinary income improved by 34.1% from the initial forecast to 10.4 billion yen, yet down 52.7% from a year ago.
- As a result, owing to the rebound effect of the extraordinary loss we posted in the previous year as well as other factors such as the tax refund on income taxes for past fiscal years, the Group posted net income of 7.1 billion yen, 12% down from a year ago yet 123.1% up from our initial forecast.