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Dentsu Announces Group Management Structure and Prospective Executive Members for FY2020

  • Management
  • Investor Relations

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November 14, 2019

Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President and CEO: Toshihiro Yamamoto; Head Office: Tokyo; Capital: 74,609.81 million yen) today convened a meeting of its Board of Directors where it resolved to adopt a new Group Management Structure effective from January 2020 and selected its executive members for FY2020.
As announced in the news release dated February 19, 2019 "Notice regarding Company Split and Amendment to Articles of Incorporation (amendment to the trade name and the business purpose) for Shifting to Holding Company Structure", the current Dentsu Inc. will shift to a pure holding company structure on January 1, 2020, and whose trade name will be changed to Dentsu Group Inc. At the same time, Dentsu Group Inc. will establish an in-house company, Dentsu Japan Network, to formulate business plans and build the infrastructure for the Group's overall operations in Japan. Moreover, all the operational functions that Dentsu Inc. managed as an operating holding company to date will be succeeded to Dentsu Successor Preparation Corporation Inc., whose trade name will be changed to Dentsu Inc., and new Dentsu Inc. will be launched on January 1, 2020.

Group Management Structure Effective from January 2020:

*Number of Group Companies in Japan (116) and Group Companies outside of Japan (880) are all Consolidated Subsidiaries as of September 30, 2019.

What the new dentsu (the entire Group) aims for:
People within dentsu are connected openly across countries and organizations on a global level, bringing together diverse perspectives, and making it a matter of course for innovation to be generated from anyone, anywhere. The aim is to become new dentsu, that continues to create new value and new businesses by forming flexible teams not only within dentsu, but also with various external partners.

Roles of Dentsu Group Inc., a pure holding company:
Dentsu Group Inc. will ensure not only group governance, but also will empower all Group companies and their individuals who create value and innovation. Dentsu Group Inc.:
1. will foster an environment in which flexible teams transcending organizational barriers can be created.
2. will provide opportunities to expand business domains and launch new businesses and services, as well as develop supporting systems.
3. will promote opportunities to cultivate the ideas that generate innovation, their execution, and the power of management.
Rather than a conventional holding company, Dentsu Group Inc. aims to become a "teaming company," or a company of making all the companies one team.

Roles of Dentsu Japan Network, an in-house company situated within Dentsu Group Inc.:
Dentsu Japan Network, established within Dentsu Group Inc., will conduct 1 through 3 of the above roles, designing an environment, preparing supporting systems and providing opportunities to create innovation for 116 domestic group companies. It will shape a foundation to build a flat and tightly knit network that is able to respond quickly by forming optimal teams to tackle all issues.

Roles of new Dentsu Inc.:
All the functions of the current business operations of Dentsu Inc. will be succeeded to Dentsu Successor Preparatory Corporation Inc., and the trade name will be changed to Dentsu Inc. The new Dentsu Inc. is positioned as one of the 116 group companies in Japan and it will pursue business growth in a more autonomous manner and accelerate its business transformation at a more advanced speed never seen before. Moreover, Dentsu Inc. will share and strengthen its knowledge and client portfolios within dentsu, and collaborate with other operating companies in dentsu with diverse expertise to enhance its solutions and value of services.

For prospective executive members for FY2020, please see the attached PDF file.

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