Overview of 1H/FY2011 and
Future Management Policies
- I would like to start with an overview of the Dentsu Group's earnings for the first half of fiscal 2011.
- Net sales were down 3.5% year on year on a non-consolidated basis due in part to the effects of the Great East Japan Earthquake. On a consolidated basis, however, they maintained roughly the same level as the previous year.
- The recovery of the supply chains from June onward gave the economy a much-needed lift. As a result, demand for TV spots turned to positive growth starting from the second quarter onward, and the momentum continues.
- The digital domain continued to grow while net sales in the four traditional mass media categories failed to reach last year's levels.
- While continuing our efforts to minimize the impact of the earthquake on our earnings, the Dentsu Group has made various recommendations and proposals for restoration and recovery. For example, we launched the Next Stage Project in which we carried out activities including surveys on the attitudes of consumers after the earthquake, made proposals to clients and offered support for government ministry campaigns and the government's overseas public relations efforts.
- Through the "Tohoku Rokkon Festival," which showcased six traditional Tohoku region festivals in one location, the city of Sendai, Dentsu leveraged its strengths and sought a large number of sponsor companies to support the event, placing advertisements in newspapers and broadcasting stations in the six Tohoku prefectures.