Summary of the First Half of FY2016 and Management Topics

Double-Digit Growth in Digital in Japan and Internationally

  • One major factor for our positive growth momentum is the high growth we are generating in the digital domain.
  • Gross profit in the digital domain increased by double digits both in Japan and internationally, as you can see. The contribution of digital as a proportion of our overall gross profit was more than 50% in our international business and 35% on a consolidated basis. This ensured we achieved one of the main KPIs of our medium-term business plan during the period.
  • In Japan, the growth of performance-based advertising and resource integration in the digital solution area across the parent company and subsidiaries accelerated this growth. In our international business, our progress was supported by the organic growth of our existing digital networks, such as Isobar and Amnet, and strategic M&As made in recent periods.
  • We continued to require the enhancement of various resources, such as talent, data, tools and systems as well as the broadening of our capabilities, in order to continue strengthening our competitiveness in the digital domain. Now I will explain our approach in this area.
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