Group Management Through the Independence and Collaboration of Operating Companies

「During the interim consolidated accounting period, D.A. Consortium Inc. and irep Inc. ceased to exist as a result of an absorption-type merger in which the Company’s consolidated subsidiary Hakuhodo DY ONE Co., Ltd. was the surviving company, and they were therefore excluded from the scope of consolidation.」

「In April 2025, we integrated Hakuhodo Inc. and Hakuhodo DY Media Partners Inc. to advance the sophistication of our full-funnel marketing capabilities. We aim to realize the benefits of the integration at an early stage by responding more seamlessly to companies’ full-funnel marketing needs and strengthening core capabilities, including data-driven planning and media services, as a common platform across the Group.」

「To accelerate transformation and enhance the competitiveness of the Group as a whole, in addition to our existing media capabilities, we are strengthening 3 cross-functional Group capabilities: “establishing a new company to serve as the Group’s technology platform,” “establishing a new company to advance and improve the sophistication and efficiency of the Group’s corporate functions,” and “strengthening management mechanisms that promote collaboration across the Group.”」

「To accelerate transformation and enhance the competitiveness of the Group as a whole, in addition to our existing media capabilities, we will strengthen 3 cross-functional Group capabilities: “establishing a new company to serve as the Group’s technology platform,” “establishing a new company to advance and improve the sophistication and efficiency of the Group’s corporate functions,” and “strengthening management mechanisms that promote collaboration across the Group.”」

「As a holding company, we recognize that one of our key management priorities is to create an environment that promotes the “independence and collaboration” of our diverse operating companies, strengthen management and oversight of the Group as a whole so that collaboration among the companies creates value beyond the sum of its parts, and continuously improve and enhance corporate governance across the Group.」

「In addition, because Hakuhodo DY Digital Co., Ltd. was absorbed in a merger by D.A. Consortium Inc.,」

「In addition, because a demand for the sale of shares was made, the Company made the company a wholly owned subsidiary as of 31 October 2018.」

「The Company acquired shares held by non-controlling shareholders in order to strengthen the Group’s management structure and management foundation.」

「Because the Group needs to implement management measures swiftly and operate as an integrated whole, it would be difficult to implement the above measures rapidly while the subject company remains listed. Accordingly, we concluded that making the subject company a wholly owned subsidiary would be optimal to strengthen the management structure and management foundation needed for sustainable growth while responding swiftly to changes in the environment facing the Group, by enabling the Company and the subject company to actively use each other’s management resources and thereby strengthen and optimize the Group’s digital capabilities and enhance its technology capabilities.」

「The Company and its core operating companies have a structure under which certain directors concurrently serve on the boards of both entities.」

「As a holding company, we recognize that one of our key management priorities is to create an environment that promotes the “independence and collaboration” of our diverse operating companies, strengthen management and oversight of the Group as a whole so that collaboration among the companies creates value beyond the sum of its parts, and continuously improve and enhance corporate governance across the Group.」