Summary of the First Half of FY2016 and Management Topics

Major M&A Deals in the International Business YTD Strategic investment in the increasingly important area lay the foundation to support the futher growth of the Dentsu Group

  • Now I would like to briefly explain our M&As outside of Japan in the first half.
  • As I said earlier we have continued to focus on making acquisitions this year, particularly outside of Japan. Our aim here is to enhance our resources and capabilities in the digital domain to further strengthen our competitiveness. We signed 15 M&As in the first half of the year.
  • The companies on the slide here are some examples of the acquisitions we made recently. I want to focus here on our M&A activities in North America, given the importance and size of the advertising market in the US.
  • We acquired Cardinal Path, which has operations across North America, and has strengths in the analysis of Big Data, providing consulting and solutions based on this analysis. The company has won awards from many respected industry organizations in the US.
  • Looking at growth opportunities, we acquired Gyro, one of the largest independent global creative agencies in the US, with a specific focus on B-to-B marketing, another high growth area.
  • And, finally, as announced last week, we signed an agreement to acquire Merkle, the largest independent data marketing agency in the US, with operations in a number of other markets. Merkle utilizes uses data, analytics, CRM and technology to deliver marketing solutions for brands. This business has a strong track record of growth. As a pioneer of “people-based marketing”, Merkle brings us a valuable range of data led, fully addressable and real time capabilities, and will significantly add to our product portfolio for existing and potential clients.
  • So, the acquisition environment remains buoyant, with we continue to see many opportunities for us to invest in acquisitions in order to drive the enhancement of our capabilities.
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