Dentsu Inc. announced its consolidated financial results (IFRS) for the fiscal year ending March 2015.
Dentsu Inc. announced its consolidated and non-consolidated financial results for the fiscal year ended March 2015 (April 1, 2014 to March 31, 2015). To enhance international comparability starting with this fiscal year, IFRS (International Financial Reporting Standards) has been applied. For comparison with the previous period, the fiscal year ended March 2014 (April 1, 2013 to March 31, 2014) also complies with IFRS.
〈Consolidated Results〉
For the current period, the Group's domestic operations saw gross profit increase by 1.7% compared to the previous period. Despite the impact of the consumption tax rate increase, contributions from sponsorship sales for events such as the "2014 FIFA World Cup Brazil" and the "Tokyo 2020 Olympic and Paralympic Games" enabled results to exceed the previous period. Furthermore, the organic growth rate of gross profit for overseas operations during the current period recorded double-digit growth of 10.3% compared to the previous period, driven by contributions from new customers. By region, EMEA (up 9.7%), Americas (up 7.9%), and APAC (up 14.4%) all exceeded the previous period's figures.
As a result, consolidated performance for the current period was as follows: Revenue of ¥728,626 million (up 10.4% year-on-year), Gross Profit of ¥676,925 million (up 10.1%), Operating Profit of ¥132,305 million (up 23.3%), Adjusted Operating Income*1: ¥131,903.7 million (up 5.1% YoY), Net Income (attributable to owners of the parent): ¥79,846.0 million (up 20.1% YoY), Adjusted Net Income*2 (attributable to owners of the parent): ¥92,875.0 million (up 10.0% YoY).
*1 Adjusted operating profit is a profit metric measuring the performance of recurring business operations, derived by excluding temporary factors such as amortization of intangible assets related to acquisitions, impairment losses, gains/losses on sales of fixed assets, and M&A-related expenses from accounting operating profit.
※2 Adjusted net income (attributable to owners of the parent) is an indicator measuring the recurring profit attributable to owners of the parent, derived by excluding from net income (attributable to owners of the parent) items related to operating income adjustments, earn-out obligations, revaluation gains/losses on acquisition put options, and related tax equivalents.
〈Reportable Segment Performance〉
a. Domestic Business
Gross profit for Domestic Operations was ¥333,995 million (up 1.7% year-on-year), and adjusted operating profit was ¥79,735 million (up 2.8% year-on-year).
b. Overseas Business
Gross profit for overseas operations was ¥343,232 million (up 19.6% year-on-year), and adjusted operating profit was ¥52,618 million (up 9.6% year-on-year).
For overseas subsidiaries and other companies with a fiscal year-end of December 31, the results reflect the 12-month period from January 1, 2014 to December 31, 2014.
〈Non-consolidated Results〉
The company's non-consolidated results (Japanese GAAP) were as follows: Net sales of ¥1,535,105 million (up 1.3% year-on-year), gross profit of ¥223,165 million (up 1.7%), operating profit of ¥52,421 million (up 3.6%), ordinary profit of ¥76,458 million (up 9.7%), and net profit of ¥63,950 million (up 36.2%).
Details of the consolidated and non-consolidated results for the current period are available at http://www.dentsu.co.jp/ir/
Under these circumstances, the Company forecasts consolidated results for the next fiscal year as follows: Revenue of ¥664.9 billion, Gross Profit of ¥643.3 billion, Operating Profit of ¥100.0 billion, Adjusted Operating Profit of ¥122.3 billion, and Net Profit (attributable to owners of the parent) of ¥63.5 billion.
For exchange rates, the average exchange rate for January-February 2015 was used, with 1 pound sterling converted to approximately 180.4 yen.
Note that starting in fiscal 2015, the company and its subsidiaries with fiscal year-ends other than December 31 plan to change their fiscal year-end to December 31.
〈FY2015 Outlook and Performance Forecast〉
Carat, part of the Group, projected in March 2015 that global advertising expenditure growth for the 2015 calendar year would increase by 4.6% year-on-year. By region, Japan is projected to grow by 0.9%, EMEA by 2.6%, the Americas by 5.2%, and APAC by 7.0%.
Under these conditions, the Group forecasts consolidated performance for the next fiscal year as follows: Revenue of ¥664.9 billion, Gross Profit of ¥643.3 billion, Operating Profit of ¥100.0 billion, Adjusted Operating Profit of ¥122.3 billion, and Net Profit (attributable to owners of the parent) of ¥63.5 billion. For exchange rates, the average rate from January to February 2015 was used, with £1 = approximately ¥180.4. Note that starting in fiscal 2015, the company and its subsidiaries with fiscal year-ends other than December 31 plan to change their fiscal year-end to December 31.
Furthermore, on a calendar year basis (pro forma), the next consolidated performance (January 1, 2015 to December 31, 2015) is projected as follows: Revenue: ¥776.4 billion (up 7.0% year-on-year), Gross Profit: ¥735.1 billion (up 8.6% year-on-year), operating profit of ¥120.3 billion (down 12.5%), adjusted operating profit of ¥148.8 billion (up 11.5%), net profit attributable to owners of the parent of ¥76.4 billion (down 6.2%), and adjusted net profit attributable to owners of the parent of ¥99.0 billion (up 11.0%). The adjusted operating margin is expected to increase by 0.5 percentage points to 20.2%, and adjusted earnings per share are projected to be ¥343.32, an increase of 11.0%.
The above consolidated earnings forecast is based on the 12-month period from January 1, 2015 to December 31, 2015. Year-on-year comparisons are based on the 12-month period from January 1, 2014 to December 31, 2014.
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