Summary of FY2014 and Management Strategy

Evolving and expanding in the digital domain

  • Let me now move on to our initiatives in the digital domain, which is the focus of our second strategy.
  • Gross profit in the digital domain in Japan in fiscal 2014 continued to achieve double-digit growth, up 12.2% year on year.
  • With growing needs for smartphones and performance-based advertising, we achieved strong performance not only by Dentsu on a non-consolidated basis but also by key digital companies, such as cci, NEXTAGE Dentsu and DA search & link.
  • In our international business, we carried out various M&As in the digital domain. We signed twenty-five M&As last year, eleven of which were in the digital domain.
  • In 2015, we have completed seven M&As as of the end of April, five of which are in the digital domain. We are continuing to enhance our capabilities through acquisitions.
  • And, as you know, an accelerator of the growth in the digital domain is programmatic buying. The programmatic trading desk for our Group's international business, AMNET, doubled its sales in fiscal 2014.
  • As a result of acquisitions and organic growth, the digital domain's share of our international business increased 2 points from the previous year to 43%.
  • The digital domain ratio for the entire Dentsu Group reached 30%, up by 3 points from the previous year, and is steadily improving toward the fiscal 2017 target of 35%.
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