Summary of the First Half of FY2014 and Management Strategy

Evolution and expansion of the digital domain

  • Now, let me move on to our initiatives in the digital domain.
  • In pursuit of achieving 35% in fiscal 2017, the digital ratio of the entire Dentsu Group in this period reached 29%, up 2 points from the same period one year ago.
  • Last year in Japan, we established Nextage Dentsu as part of our efforts toward performance-based advertising.
  • As a result, gross profit in the digital domain in Japan continues to achieve double-digit growth, with a 10% increase vs. the same period last year.
  • Also, in our Global business, we continue to enhance digital capability through acquisitions.
  • Consequently, the digital ratio at Dentsu Aegis Network increased by 2 points year on year to 43%, which surpasses the level of competing mega-agencies.
  • We expect the digital ratio at Dentsu Aegis Network to reach 50% by 2016, as we continue to build our digital capabilities organically and through small to medium sized bolt-on acquisitions.
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