Dentsu Inc. Forms Capital and Business Alliance with Saika

On March 23, Dentsu Inc. and its wholly-owned subsidiary Dentsu Digital Inc. (DDH) announced an agreement to invest in Cyca* and form a business alliance to develop and promote integrated analysis (attribution) solutions in the digital marketing domain. XICA is a rapidly growing venture company specializing in the planning, development, and provision of cloud-based data analysis solutions using statistical methods. Through this business alliance, Dentsu Inc. aims to combine its expertise and know-how in advertising communications with XICA's new tool "XICA magellan," scheduled for release this May and designed to optimize overall marketing efforts. This collaboration seeks to enhance planning and execution capabilities by systematically analyzing diverse communication activities to further boost overall effectiveness.

Specifically, it will utilize data such as the volume of TV commercials and internet advertisements, related online information, and cross-device data (PC, mobile, etc.) to perform statistical analysis. This analysis will examine how cross-media promotional activities influence each other and impact sales, conversions (achievement of results), and other metrics.

This enables visualization of the effects not only of directly impactful measures but also of indirectly contributing ones. It also facilitates statistical measurement of TV commercials, whose quantitative effects were previously difficult to gauge, and allows for budget simulations to maximize effectiveness during communication plan formulation.

The purpose of this investment is to strengthen the cooperative relationship with Cyca, thereby reinforcing and accelerating the Dentsu Group's solution initiatives in the digital marketing domain. Simultaneously, the Group will support Cyca's further growth through financial backing and business synergies.

Overview of Cyca is as follows.

<Saika Company Overview>

Company Name: Cyca Inc.

Representative: Yoshiaki Hirao (Representative Director)

Date Established: February 20, 2012

Capital: 185,154,700 yen

Location: 3F, Jimbocho Kanna Building, 2-22 Kanda Jimbocho, Chiyoda-ku, Tokyo

Number of Employees: 18

Business Description: Development and sales of data analysis tools

Investment Overview: Subscription of third-party allotment capital increase conducted by Cyca through the Dentsu Digital Inc. Fund

*Investment made through the Dentsu Digital Inc. Investment Limited Partnership (commonly known as the Dentsu Digital Inc. Fund), managed by DDH. The Dentsu Digital Inc. Fund was established in October 2010 with the purpose of accelerating the growth of the Dentsu Group's digital businesses and contributing to the healthy development of digital communication markets not only in Japan but also in the US, China, and other regions. Key investment areas include digital marketing platforms and digital media, digital technology, social marketing, digital device development, and the deployment of new business models utilizing digital technology.

Dentsu Inc. News Releasehttp://www.dentsu.co.jp/news/release/2016/0323-008717.html