Summary of the First Half of FY2015 and Management Strategy

Further reinforcing the business platform in the core Japanese market

  • Next, I would like to explain the fourth strategy, “Further reinforcing the business platform in the Japanese market” as the core Japanese market.
  • The gross profit of our Japan business in the first half even surpassed the record high of the previous year.
  • In particular, the performance of key promotion and digital subsidiaries, such as Dentsu Tec, CCI and ISID, was strong.
  • As I mentioned earlier, we are working on the sophistication of solutions and the enhancement of capabilities in the entire digital solutions domain, including marketing intelligence , in order to respond to the digital shift of clients' marketing activities.
  • The gross profit of our Japan business in the digital solutions domain in the first half showed close to 20% increase over the same period last year. We will make continued efforts to increase the revenue of our Japan business through capability reinforcement.
  • While broadcast and telecommunication companies try to establish a brand new business model, we, Dentsu group, work with players in the field of media and content in order to build new revenue streams and to enhance the value of diverse media.
  • As an example, Dentsu Digital Holdings established a joint venture with a major entertainment company Yoshimoto Kogyo this October, to produce original content.
  • Its first focus area is on producing original content for Netflix which launched business in Japan this autumn.
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