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Earnings presentation2433HAKUHODO DY HOLDINGS INCORPORATEDInformation and Communications, Services and Others

Financial Results Briefing Materials for the First Half of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue and gross profit exceeded the year-earlier period, while operating profit and ordinary profit declined. The full-year forecasts were left unchanged, with interim and full-year dividend forecasts of ¥16 and ¥32, respectively, and the company is also considering reorganizing its domestic business around AI.

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Revenue year-on-year change (%)
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Contents of this document

Earnings presentationFirst half of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales736,825 Million yen+6.0%
Operating profit9,798 Million yen-8.8%
Ordinary income9,096 Million yen-15.0%
Net income380 Million yen+22.6%
Selling, general and administrative expenses178,312 Million yen
Gross Profit Margin
Rate25.5
Year-on-year change (points)-0.4
Operating profit margin
Rate5.2
Year-on-year change (points)-0.8
Results for the three months of the current quarter
Q1
Net Sales
364,297 Million yen+7.5%
Gross profit
90,652 Million yen+5.6%
Operating profit
3,016 Million yen+19.4%
Ordinary income
3,037 Million yen+4.6%
Net income
-1,760 Million yen
Q2
Net Sales
372,527 Million yen+4.6%
Gross profit
97,458 Million yen+3.5%
Operating profit
6,781 Million yen-17.5%
Ordinary income
6,059 Million yen-22.2%
Net income
2,141 Million yen+0.6%
Full-year earnings forecast
Net Sales
1,675,000 Million yen
Revenue
910,000 Million yen
Gross profit
430,000 Million yen
Operating profit
46,700 Million yen
Ordinary income
47,000 Million yen
Net income
26,000 Million yen
Operating profit before amortization of goodwill
60,000 Million yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing as planned
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit in Japan and company-wide¥63 100 million
  • Increase in SG&A expenses and other costs in Japan and company-wide¥-54 100 million
  • Decrease in overseas gross profit¥-32 100 million
  • Decrease in overseas SG&A expenses¥18 100 million
New initiatives
  • Considering the formation of a new business entity for the AI era centered on Daiko, Yomuri Advertising and OPT
  • Considering the establishment of a common platform for production functions centered on Hakuhodo Products
  • Considering the reorganization of functions in 3 areas, including Hokkaido, Tohoku, Niigata, Hokuriku, Shizuoka, Chugoku-Shikoku and Kyushu
  • Use of AI transformation services, an AI business platform, and consumer data platforms and technologies
  • Making an integrated digital agency in India a subsidiary and strengthening digital capabilities
Key KPIsA metric the company considers important as a management benchmark.
  • Internet business revenue238,522 Million yen
    Year on year against the same period last year+16.9%
  • Total media revenue400,151 Million yen
    Year on year against the same period last year+8.7%
  • CAGR of gross profit across 4 domestic business areas16.3 %
    Year on year against the same period last year+5.8%
  • CAGR of gross profit from domestic digital marketing8 %
    Year on year against the same period last year+15.9%
  • FDE specialists200 participants
Segment results
Japan
Net Sales
633,966 Million yen+6.0%
Gross profit
138,038 Million yen+4.8%
Operating profit
30,119 Million yen+3.0%
Overseas
Net Sales
107,940 Million yen+6.5%
Gross profit
52,608 Million yen+3.4%
Operating profit
-4,432 Million yen
Eliminations or corporate
Net Sales
-5,082 Million yen
Gross profit
-2,535 Million yen
Operating profit
-15,888 Million yen
Medium-term management plan targets
  • TargetAdjusted compound annual growth rate in operating profit before goodwill amortization
    Target valueAt least +10%
    Target fiscal yearFiscal year ending March 2027
    First-half actual+77.5%
  • TargetAdjusted compound annual growth rate in gross profit
    Target valueAt least +5%
    Target fiscal yearFiscal year ending March 2027
    First-half actual+3.6%
  • TargetAdjusted operating margin before goodwill amortization
    Target value13% or more
    Target fiscal yearFiscal year ending March 2027
    Actual resultsTo be confirmed at the full-year results announcement
  • TargetROE before goodwill amortization
    Target valueAt least 10%
    Target fiscal yearFiscal year ending March 2027
    Actual resultsTo be confirmed at the full-year results announcement
Financial targets
  • ROE before goodwill amortization
    Target valueAt least 10%
    Actual resultsTo be confirmed at the full-year results announcement
Number of employees
Number of EmployeesMore than 200 FDE specialists
Capital expenditures
¥2,243 millions purchases of property, plant and equipment
Annual Dividend
Annual¥32 /share
Interim¥16 /share
End of period¥16 /share
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst half of the fiscal year ending March 2027
Net Sales736,825 Million yen (YoY +6.0%)
Operating profit9,798 Million yen (YoY -8.8%)
Ordinary income9,096 Million yen (YoY -15.0%)
Net income380 Million yen (YoY +22.6%)
Gross Profit MarginRate 25.5 / Year-on-year change (points) -0.4
Operating profit marginRate 5.2 / Year-on-year change (points) -0.8
Selling, general and administrative expenses178,312 Million yen
Results for the three months of the current quarterQ1 Net Sales 364,297 Million yen (YoY +7.5%) / Gross profit 90,652 Million yen (YoY +5.6%) / Operating profit 3,016 Million yen (YoY +19.4%) / Ordinary income 3,037 Million yen (YoY +4.6%) / Net income -1,760 Million yen / Q2 Net Sales 372,527 Million yen (YoY +4.6%) / Gross profit 97,458 Million yen (YoY +3.5%) / Operating profit 6,781 Million yen (YoY -17.5%) / Ordinary income 6,059 Million yen (YoY -22.2%) / Net income 2,141 Million yen (YoY +0.6%)
Full-year earnings forecastNet Sales 1,675,000 Million yen / Revenue 910,000 Million yen / Gross profit 430,000 Million yen / Operating profit 46,700 Million yen / Ordinary income 47,000 Million yen / Net income 26,000 Million yen / Operating profit before amortization of goodwill 60,000 Million yen
Self-assessment against the planProgressing as planned
Segment resultsJapan Net Sales 633,966 Million yen (YoY +6.0%) / Gross profit 138,038 Million yen (YoY +4.8%) / Operating profit 30,119 Million yen (YoY +3.0%) / Overseas Net Sales 107,940 Million yen (YoY +6.5%) / Gross profit 52,608 Million yen (YoY +3.4%) / Operating profit -4,432 Million yen / Eliminations or corporate Net Sales -5,082 Million yen / Gross profit -2,535 Million yen / Operating profit -15,888 Million yen
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit in Japan and company-wide / Amount ¥63 100 million, Factors Increase in SG&A expenses and other costs in Japan and company-wide / Amount ¥-54 100 million, Factors Decrease in overseas gross profit / Amount ¥-32 100 million, Factors Decrease in overseas SG&A expenses / Amount ¥18 100 million
Key KPIsIndicator name Internet business revenue / Value 238,522 Million yen / Year on year against the same period last year 16.9 Million yen, Indicator name Total media revenue / Value 400,151 Million yen / Year on year against the same period last year 8.7 Million yen, Indicator name CAGR of gross profit across 4 domestic business areas / Value 16.3 % / Year on year against the same period last year 5.8 %, Indicator name CAGR of gross profit from domestic digital marketing / Value 8 % / Year on year against the same period last year 15.9 %, Indicator name FDE specialists / Value 200 participants / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees More than 200 FDE specialists / Change during the period Not disclosed / Hiring plan Not disclosed
Medium-term management plan targetsTarget Adjusted compound annual growth rate in operating profit before goodwill amortization / Target value At least +10% / Target fiscal year Fiscal year ending March 2027 / First-half actual +77.5%, Target Adjusted compound annual growth rate in gross profit / Target value At least +5% / Target fiscal year Fiscal year ending March 2027 / First-half actual +3.6%, Target Adjusted operating margin before goodwill amortization / Target value 13% or more / Target fiscal year Fiscal year ending March 2027 / Actual results To be confirmed at the full-year results announcement, Target ROE before goodwill amortization / Target value At least 10% / Target fiscal year Fiscal year ending March 2027 / Actual results To be confirmed at the full-year results announcement
Financial targetsIndicator ROE before goodwill amortization / Target value At least 10% / Actual results To be confirmed at the full-year results announcement
Annual DividendAnnual ¥32 /share / Interim ¥16 /share / End of period ¥16 /share
Capital expenditures¥2,243 millions (purchases of property, plant and equipment)
New initiativesConsidering the formation of a new business entity for the AI era centered on Daiko, Yomuri Advertising and OPT, Considering the establishment of a common platform for production functions centered on Hakuhodo Products, Considering the reorganization of functions in 3 areas, including Hokkaido, Tohoku, Niigata, Hokuriku, Shizuoka, Chugoku-Shikoku and Kyushu, Use of AI transformation services, an AI business platform, and consumer data platforms and technologies, Making an integrated digital agency in India a subsidiary and strengthening digital capabilities
Items this document does not state (10)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In Japan, gross profit increased, led by television and internet media, while expenses were kept within the increase in revenue, resulting in higher profit. Overseas, profit declined as the impact of difficulties in North America and elsewhere in the first quarter continued. Overseas operations showed some improvement in the second quarter, and net income attributable to owners of the parent returned to profitability for the first half.

How to read this page

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Financial Results Briefing Materials for the First Half of the Fiscal Year Ending March 2027 | HAKUHODO DY HOLDINGS INCORPORATED (2433) timely disclosure | Komori