Summary of the First Half of FY2016 and Management Topics

Summary of First-Half Earnings Results: Continuing outperformance organic growth against the peers

  • As you can see, organic growth was favorable in the first half in Japan and in the three regions of our international business. With organic growth of +7.2% on a consolidated basis in the first half, we continue to outperform the peer group average.
  • In Japan, our business posted organic growth of 8.5% in the first half, reflecting demand related to the Tokyo 2020 Olympic and Paralympic Games, and a growth in earnings in the digital domain at Dentsu Inc. as well as Group companies.
  • In our international business, we posted organic growth of 6.0% in the first half of the year. Let's look at our performance by region in the second quarter of 2016.
  • In EMEA, growth was down slightly due to the tough comparators. Nonetheless, we are continuing to see high growth in markets like Spain, Italy, Russia, Poland, and the Scandinavian countries.
  • In the Americas, growth was strong in most markets in South America, with the exception of Brazil. In addition to a strong performance in Canada, in the US, performance is gradually trending toward recovery, owing in part to the contribution from new business wins in the fourth quarter of last year and first quarter of this year. Accordingly, organic growth turned positive in the US in the second quarter.
  • In APAC, we posted double-digit growth in the second quarter. Australia and India continue to drive our growth in this region. We posted positive growth in China, the largest market in this region, well ahead of our growth performance in the first quarter, which was impacted by particularly tough comparators.
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