Dentsu Inc. announced its consolidated financial results (IFRS) for the first quarter of the fiscal year ending December 2015.

Dentsu Inc. announced its consolidated financial results (IFRS) for the first quarter of the fiscal year ending December 2015 (April 1, 2015 to June 30, 2015) on August 11.

<Consolidated Performance>

During the first quarter cumulative period, the Group's performance in its domestic business saw a decline due to the aftermath of the 2014 FIFA World Cup Brazil. However, driven by sponsorship sales for the Tokyo 2020 Olympic and Paralympic Games and contributions from domestic Group companies, gross profit reached ¥74,190 million (up 2.3% year-on-year). and adjusted operating profit reached ¥13,351 million (up 9.9% YoY), both showing year-on-year growth. Furthermore, the organic growth rate of gross profit for overseas operations during the first quarter cumulative period recorded double-digit growth of 13.7% YoY, driven by contributions from new clients. By region, EMEA (up 11.1%), Americas (up 10.4%), and APAC excluding Japan (up 22.5%) all posted double-digit growth. Adjusted operating profit for overseas operations was ¥5,904 million (up 227.5%), significantly exceeding the same period last year.

As a result, consolidated revenues for the first quarter cumulative period reached ¥172,027 million (up 14.9% year-on-year), gross profit was ¥161,111 million (up 15.4%), operating profit was ¥12,254 million (up 23.4%), ※Adjusted operating income was ¥19,282 million (up 37.5% year-on-year), quarterly profit (attributable to owners of the parent) was ¥6,838 million (up 74.8% year-on-year), and adjusted quarterly profit (attributable to owners of the parent) was ¥13,653 million (up 41.0% year-on-year).

※Adjusted operating profit is a profit metric measuring the performance of ongoing operations, derived by excluding from operating profit non-recurring items such as amortization of intangible assets related to acquisitions, impairment losses, gains/losses on sales of fixed assets, and acquisition-related expenses.

<Reportable Segment Performance>

1. Domestic Business　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Gross profit for the Domestic Business was ¥74,190 million (up 2.3% year-on-year), and adjusted operating profit was ¥13,351 million (up 9.9% year-on-year).
2. Overseas Operations　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Gross profit for overseas operations was ¥86,957 million (up 29.7% year-on-year), and adjusted operating profit was ¥5,904 million (up 227.5% year-on-year).

　For overseas subsidiaries and other companies with a fiscal year-end of December 31, the results for the first quarter of the current consolidated fiscal year generally reflect the three-month period from January 1, 2015 to March 31, 2015.

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< Non-consolidated Results>

　The company's non-consolidated results (Japanese GAAP) showed net sales of ¥364,989 million (up 2.3% year-on-year), gross profit of ¥49,130 million (down 2.2% year-on-year), operating profit of ¥10,111 million (up 2.6%), ordinary profit of ¥27,924 million (up 3.5%), and quarterly net profit of ¥25,171 million (up 11.8%).

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Details of the first quarter consolidated results are available at http://www.dentsu.co.jp/ir/

＜Consolidated Performance Forecast for Fiscal Year2015＞

Performance to date has progressed largely as anticipated. Therefore, the full-year (April 1, 2015 to December 31, 2015) earnings forecast announced on May 14, 2015 remains unchanged. The pro forma (January 1, 2015 to December 31, 2015) earnings forecast also remains unchanged.

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(Reference:Consolidated Earnings Forecast Announced onMay14, 2015)

　 ◆Full-Year (April 1, 2015-December 31, 2015) Performance Forecast: Revenue ¥664.9 billion, Gross Profit ¥643.3 billion, Operating Profit ¥100.0 billion, Adjusted Operating Profit ¥122.3 billion, Net Profit (attributable to owners of the parent) ¥63.5 billion.

　◆Pro Forma Forecast (January 1, 2015 - December 31, 2015)

Revenue: ¥776.4 billion (up 7.0% YoY), Gross Profit: ¥735.1 billion (up 8.6% YoY), Operating profit: ¥120.3 billion (down 12.5% YoY), Adjusted operating profit: ¥148.8 billion (up 11.5% YoY), Net income attributable to owners of parent: ¥76.4 billion (down 6.2% YoY), Adjusted net income attributable to owners of parent: ¥99.0 billion (up 11.0% YoY). Furthermore, the adjusted operating margin is expected to increase by 0.5 percentage points to 20.2%, and adjusted basic earnings per share are projected to be ¥343.32, an 11.0% increase.

Dentsu Inc. News Releasehttp://www.dentsu.co.jp/news/release/2015/0811-004118.html