What is Hakuhodo DY Holdings' finance strategy for transformation? “Growth is impossible if you only do what is within your means”

The interview emphasises the role of finance in achieving strategy by combining a range of means, including not only M&A but also joint investments, JVs and integration and restructuring within the group. Yajima explained that M&A is suited to situations where the company wants to bring a business into the group, while a JV is suited to situations where it wants to combine the knowledge and assets of both parties. This illustrates the importance of managing the organisation while balancing commonality and diversity.

The interview also explains how the group has pursued optimal organisational structures in response to changes in the times, including the establishment of Hakuhodo Technologies and the establishment of Hakuhodo DY ONE through the integration and restructuring of DAC and irep. Yajima said that the rapid adaptation of organisations and talent is key to responding to transformation in the AI era.

The 3 investment areas identified are the marketing solutions business, extending beyond conventional marketing and communications, adjacent areas, and new-frontier areas that open up new markets. New-frontier areas include initiatives such as establishing a CVC and investing in overseas funds to broaden contact with future partners. The interview also describes fund management centred on the HAKUHODO DY FUTURE DESIGN FUND and collaboration with WiL and others.

The management policy for the AI era places emphasis on the “Three As”: Automation, Augmentation and Aspiration, with “AI-POWERED CREATIVITY”, which enhances human creativity through AI, at the core of the strategy. The company intends to shift its focus from income-statement management to balance-sheet management, align funding and capital allocation with its strategy, and pursue investments that will contribute to its future competitiveness.