Dentsu : Q3 / 2021 Quarterly Financial Statements (January to September 2021)（611KB）

Excerpt from Quarterly Report

(Consolidated Financial Statements) (January 1 to September 30, 2021)

Part 4. Financial Section

1. Preparation Method of Condensed Quarterly Consolidated Financial Statements

1. The condensed quarterly consolidated financial statements of Dentsu Group Inc. (hereinafter referred to as "the Company") are prepared in accordance with International Accounting Standards 34 "Interim Financial Reporting" (hereinafter referred to as "IAS 34") under the provisions of Article 93 of the "Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements" (Cabinet Office Ordinance No. 64, 2007; hereinafter referred to as "the Ordinance").
2. In the condensed quarterly consolidated financial statements, figures less than one million yen are rounded down to the nearest million yen.

2. Audit Certificate

Pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Company's condensed quarterly consolidated financial statements for the third quarter ended September 30, 2021 (from July 1 to September 30, 2021) and the condensed consolidated financial statements for the first nine months (from January 1 to September 30, 2021) of fiscal year 2021, which were compiled in Japanese, were subject to a quarterly review by KPMG AZSA LLC.

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1. Condensed Quarterly Consolidated Financial Statements

(1) Condensed Quarterly Consolidated Statement of Financial Position

				(Millions of Yen)
	Notes	FY2020		The third quarter
	(As of December 31, 2020)		(As of September 30, 2021)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		530,692	601,738
Trade and other receivables		1,293,370	1,351,432
Inventories		23,848	35,689
Other financial assets	15	12,162	15,781
Other current assets		64,739	79,789
Subtotal		1,924,814	2,084,431
Non-current assets classified as held		2	2
for sale
Total current assets		1,924,816		2,084,434
NON-CURRENT ASSETS:
Property, plant and equipment	7	280,196	178,444
Goodwill		593,369	653,316
Intangible assets		207,182	208,232
Investment property	7	36,362	515
Investments accounted for using the		50,906	55,425
equity method
Other financial assets	15	216,750	243,427
Other non-current assets		16,202	15,505
Deferred tax assets		54,624	61,157
Total non-current assets
	1,455,595	1,416,026

TOTAL ASSETS	5	3,380,412	3,500,460

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				(Millions of Yen)
	Notes	FY2020		The third quarter
	(As of December 31, 2020)		(As of September 30, 2021)
LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES:
Trade and other payables		1,247,172	1,264,862
Borrowings	15	72,533	109,683
Other financial liabilities	7, 15	149,737	85,067
Income tax payables		71,228	55,775
Provisions		28,745	25,074
Other current liabilities		189,654	188,148
Total current liabilities
	1,759,071	1,728,612
NON-CURRENT
LIABILITIES:
Bonds and borrowings	15	512,274	478,959
Other financial liabilities	7, 15	149,305	221,184
Liability for retirement benefits		25,421	29,834
Provisions	4	48,013	35,152
Other non-current liabilities		10,970	14,708
Deferred tax liabilities		55,002	59,326
Total non-current
	800,987	839,166
liabilities
Total liabilities
	2,560,059	2,567,779
EQUITY:
Share capital		74,609	74,609
Share premium account		75,596	77,376
Treasury shares	8	(34,592)	(54,693)
Other components of equity		41,790	87,850
Retained earnings		599,466	681,601
Total equity attributable to
	756,870	866,745
owners of the parent
Non-controlling interests		63,483	65,935
Total equity
	820,353	932,681
TOTAL LIABILITIES AND
	3,380,412	3,500,460
EQUITY

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(2) Condensed Quarterly Consolidated Statement of Income

For the nine months ended September 30, 2020 and September 30, 2021

				(Millions of Yen)
		Nine months ended		Nine months ended
	Notes	September 30, 2020		September 30, 2021
	(From January 1		(From January 1
		to September 30, 2020)		to September 30, 2021)
Turnover (Note 1)	5	3,146,255	3,694,821
Revenue	5, 9	676,362	774,548
Cost		74,435	78,152
Revenue less cost of sales	5	601,927	696,396
Selling, general and administrative		551,075	591,181
expenses
Business transformation cost	4	25,174	11,383
Gain (loss) on sale and retirement of	7	(91)	119,245
non-current assets
Other income	10	4,633	5,099
Other expenses	11	11,715	6,299
Operating profit		18,503	211,876
Share of results of associates		334	1,559
Impairment loss of associates		436	-
Gain on sales of shares of associates		55	35
Revaluation gain on step acquisition		44	-
Profit before interest and tax		18,501	213,471
Finance income	12	22,331	3,338
Finance costs	12	15,766	36,577
Profit before tax		25,067	180,233
Income tax expense		9,533	73,943
Profit for the period		15,533	106,290
Profit attributable to:
Owners of the parent		10,286	101,746
Non-controlling interests		5,246	4,544
Earnings per share
Basic earnings per share (Yen)	13	36.90	363.25
Diluted earnings per share (Yen)	13	36.87	362.22

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Reconciliation from operating profit to underlying operating profit

				(Millions of Yen)
		Nine months ended		Nine months ended
	Notes	September 30, 2020		September 30, 2021
	(From January 1		(From January 1
		to September 30, 2020)		to September 30, 2021)
Operating profit		18,503	211,876
Amortization of intangible assets		23,333	22,393
incurred in acquisitions
Selling, general and administrative		1,608	3,963
expenses
Business transformation cost		25,174	11,383
(Gain) loss on sale and retirement of		91	(119,245)
non-current assets
Other income		(19)	(292)
Other expenses		7,130	1,747
Underlying operating profit (Note 2)	5	75,823	131,826

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