Overview of 1H/FY2011 and
Future Management Policies
- In the global domain, the Dentsu Group is increasingly using locally-hired management and enhancing its service lineup. We are expanding our business by winning global and local accounts as well as Japanese clients.
We will continue our efforts to improve our competitiveness with the aim of achieving an operating income of ¥10 billion in our overseas business by fiscal 2013.
- Operating income for fiscal 2011 will remain at ¥4-5 billion due to the increase in up-front costs such as the cost of hiring talented local management. However, the level of SG&A is expected to stop increasing from fiscal 2012, and lead to steady growth in operating income.
- Past investments are bearing fruit in the Americas and Europe, through which further expansion of our local and global client bases can be expected.
In fact, Dentsu McGarry Bowen has succeeded in winning large-scale accounts such as Sears, Burger King and United Continental this year.
Through our ongoing efforts in strengthening the base of our business, we intend to expand our client bases in emerging economies including South America, China, ASEAN and India where the advertising market is growing rapidly. We hope to achieve growth exceeding the market average.
- Needless to say, we will pursue business expansion by actively seeking M&As in addition to organic growth in each region.