Dentsu Inc. Announces Consolidated Financial Results for Fiscal Year Ended March 2014

Dentsu Inc. announced its consolidated and non-consolidated financial results for the fiscal year ended March 2014 (April 1, 2013 to March 31, 2014).

For the current consolidated fiscal year (hereinafter "the current period"), net sales were ¥2,309,359 million (up 19.0% year-on-year), gross profit was ¥594,072 million (up 71.7%), operating profit before amortization of goodwill and other intangible assets was ¥114,186 million (up 81.7%), operating profit of ¥71,490 million (up 22.3%), ordinary profit of ¥82,538 million (up 39.8%), and net profit of ¥38.8 billion (up 6.8%). Both domestic and overseas businesses performed well, with net sales, gross profit, and ordinary profit reaching record highs.

^{Operating profit before amortization of goodwill, etc.*} is calculated by adding back ¥27,029 million in goodwill amortization and ¥15,666 million in other intangible asset amortization, both arising from acquisitions (including the acquisition of Aegis), to the accounting operating profit.

Furthermore, following the acquisition of Aegis UK, the results of Dentsu Aegis Network Ltd. (renamed Dentsu Aegis Network Co., Ltd. on March 26, 2013) have been reflected in the consolidated income statement starting from the first quarter consolidated accounting period.

*Operating income before amortization of goodwill, etc. refers to operating income calculated excluding the amortization of goodwill, etc. arising from acquisitions.

For the current period, non-consolidated results were as follows: Net sales of ¥1,515,062 million (up 7.3% year-on-year), gross profit of ¥219,393 million (up 10.9%), operating profit of ¥50,579 million (up 41.4%), ordinary income was ¥69,667 million (up 78.2%), and net income was ¥46,953 million (up 66.6%). Non-consolidated ordinary income and net income both reached record highs.

For the current period's financial results summary, please refer to: http://www.dentsu.co.jp/ir/ .

<Outlook for the Next Fiscal Year>

According to Carat's March 2014 compilation, global advertising expenditure growth for the 2014 calendar year increased 4.8% year-on-year. By region: Latin America +12.8%, Asia Pacific +5.6%, Central and Eastern Europe +5.0%, North America +4.3%, Western Europe +1.8%.

Under these conditions, the following consolidated performance is projected: Net sales of ¥2,371.2 billion (up 2.7% year-on-year), Gross profit of ¥623.0 billion (up 4.9%), Operating income before amortization of goodwill, etc. of ¥115.5 billion (up 1.2%), Operating income of ¥72.5 billion (up 1.4%), ordinary profit of ¥77.9 billion (down 5.6%), and net profit of ¥31.1 billion (down 19.8%).

Going forward, to enhance international comparability in the capital markets, the Company is considering voluntary adoption of IFRS, targeting the fiscal year ending March 2015 (year-end closing).

For the next fiscal year's non-consolidated results, the company forecasts net sales of ¥1,567.2 billion (up 3.4% year-on-year), gross profit of ¥223.1 billion (up 1.7%), operating profit of ¥51.9 billion (up 2.6%), ordinary profit of ¥61.0 billion (down 12.4%), and net profit of ¥35.0 billion (down 25.5%).

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2014/0513-003728.html