How to Increase Corporate Value from an Investor Perspective? Strategic IR Support Program "IR For Growth" (Part 2)

With approximately half of listed companies trading below a PBR (price-to-book ratio) of 1.0 and the TOPIX reform tightening listing maintenance standards, companies are under increasing pressure to demonstrate sustainable corporate value growth to investors. Enhancing corporate value requires collaboration not only from management but also across various departments, including corporate planning, IR, business units, and public relations. However, in listed companies where functional specialization is advanced, many struggle to sufficiently drive initiatives cross-functionally from strategy formulation to execution. Consequently, there is a growing trend toward seeking partners capable of providing integrated support and driving initiatives across departments.

To address these challenges, the domestic Dentsu Group ( dentsu Japan ) has launched the strategic IR support program " IR For Growth." This project involves Mr. Takashi Katayama, Director of the Business Transformation Division at Dentsu Inc., Mr. Kazutoshi Numata, Executive Officer at Dream Incubator Inc. and Dentsu Business Transformation Division, and Mr. Atsushi Kanie from the Consulting Division at DENTSU SOKEN INC. Consulting Division, and Ms. Mai Takahashi from the DENTSU SOKEN INC. Consulting Division, who has handled numerous human capital management projects.

Success Stories Featuring Unique KPIs in Non-Financial Areas

Q. What services does "IR For Growth" provide?

Katayama: We offer various service menus, including IR strategy formulation and internal/external communication. However, each of these individual services is likely already being implemented by companies. Enhancing corporate value is like a mixed martial arts competition. The significance of "IR For Growth" lies in our ability to provide a comprehensive flow—connecting fragmented financial and non-financial elements, crafting a value creation story, and communicating it to stakeholders—rather than just individual services.

Katayama: Many clients already have various consultants for management, IR strategy, HR management, and so on. In some cases, this actually promotes fragmentation between departments. When supporting such cases, the Dentsu Group can not only bring everything together but also collaborate and co-create with existing consultants to craft the story.

Q. Could you share an example where combining financial and non-financial value led to enhanced corporate value?

Takahashi: Allow me to share the case of Sanrio Co., Ltd. The company established new Vision, Mission, and Values in 2021, and it was at this juncture that Dentsu Inc. began supporting them.

Where we provided uniquely Dentsu Inc.-style support was in conceptualizing Sanrio's desired future state. While Sanrio is known for its IP business, to redefine corporate value from a fresh perspective, we proposed focusing on "the time consumers spend engaging with Sanrio characters and products." This perspective was developed internally at Sanrio, leading to the creation of their unique non-financial metric: "Sanrio Time" (*).

Katayama: The uniqueness of creating "Sanrio Time" as a non-financial goal is reportedly highly valued by investors. Sanrio's performance remains strong, with a PBR of 14-15 times as of July 2025.

*A collective term for the time spent by customers smiling as they engage with and become absorbed in Sanrio characters and services through products, digital content, theme park experiences, etc.

Essential IR Strategy Supported by Dentsu Japan

Q. For companies struggling with stagnant PBR, please share a message about the importance of enhancing both financial and non-financial value, and the support framework provided by the Dentsu Group.

Katayama: What investors demand from companies is the expectation of future growth. Modern corporate management requires presenting a growth story that integrates financial and non-financial elements, embedding it throughout the organization, and taking concrete action. As I mentioned, the Dentsu Group believes the capability we cultivated in advertising—to move people's emotions and change their behavior—can also be effectively applied in this domain. Please feel free to reach out.

Kanie: Regarding business strategy, many companies make logical decisions about where to invest and where to withdraw based on portfolio analysis. However, when non-financial factors come into play, they often suddenly become unsure of what to do. DENTSU SOKEN INC. supports the establishment of evidence-based decision criteria grounded in information that integrates financial and non-financial data. We hope this will be useful for the decision-making of management executives.

Numata: Enhancing corporate value requires executives to tackle a wide range of tasks. Determining where to start and setting priorities can be difficult. Stuck with these concerns, progress stalls. We hope consulting with the Dentsu Group can help you find a starting point for solutions. Precisely because this isn't a simple "do this and it's solved" problem, we would be delighted if you would begin by engaging in discussions with us.

Takahashi: It's impossible to push through reforms all at once to highlight non-financial value. Efforts in IR and HR need to be advanced step by step. While the division of phases differs by company, I believe how you design the phases for stepping up will determine success or failure. We at the Dentsu Group would like to assist with these points as well.

Investor focus is shifting from sales and profits to human capital. To elevate investor expectations and enhance corporate value, it's crucial to communicate a growth story that integrates financial and non-financial aspects both internally and externally. Why not start by reviewing your company's challenges and the value you can offer for the future through our strategic IR program "IR For Growth," leveraging Dentsu Group's assets? This will help build a story that resonates with stakeholders.