August 9, 2022

Company Name: Hakuhodo DY Holdings Inc.

Representative: Masayuki Mizushima, President

(Code number: 2433; TSE Prime Section)

Inquiries: Atsushi Yoshino

Executive Manager, Investor Relations Division

(Tel: +81-3-6441-9033)

Consolidated Financial Highlights for Q1 FY2022

Hakuhodo DY Holdings Inc. has announced its first-quarter earnings report for FY2022, the year ending March 31, 2023, after approval at the Board of Directorsʼ meeting held today. The main points are as follows.

1.Income Statements (Q1 FY2022: April 1, 2022 to June 30, 2022)

(Millions of JPY)

FY2021

FY2022

YoY Comparison

(3M Result)

(3M Result)

Change

(%)

Billings

326,964

349,106

22,142

6.8%

Revenue

172,378

195,636

23,258

13.5%

Gross profit

78,240

84,420

6,180

7.9%

(Gross margin)

(23.9%)

(24.2%)

(+0.3%)

SG&A expenses

66,152

72,961

6,809

10.3%

Operating income

12,087

11,458

(629)

-5.2%

(Operating margin)*

(15.4%)

(13.6%)

(-1.9%)

Non-operating income

1,605

2,949

1,344

83.7%

Non-operating expenses

441

537

96

21.8%

Ordinary income

13,251

13,870

618

4.7%

Extraordinary income

280

366

86

30.7%

Extraordinary loss

108

661

553

512.2%

Net income before income taxes

13,423

13,574

151

1.1%

and minority interests

Net income attributable to owners

6,238

4,582

(1,656)

-26.5%

of parent

* Operating margin = Operating income / Gross profit

During the first quarter of the current fiscal year (April 1, 2022 to June 30, 2022, hereafter "Q1 FY2022"), the Japanese economy showed many factors that put downward pressure on the economy, such as stagnant supply chains due to the urban lockdown in China, soaring resource prices, and falling stock prices, however, the overall economy was on a recovery track as restrictions on behavior was lifted and consumer spending picked up. The domestic advertising market (Note 1) also continued its recovery trend from the previous fiscal year, starting with positive YoY growth for two consecutive months in April and May.

Under such environment, Hakuhodo DY group has continued to aggressively develop our business in accordance with our Medium-term business plan which ends in the fiscal year ending FY2023. As a result, billings (Note 2) were 349,106 million (up 6.8% YoY) and revenues were 195,636 million (up 13.5% YoY), both higher than the same period last year.

1

In terms of billings by service category, the four-mass media (newspapers, magazines, radio, and TV) recorded lower than Q1 FY2021 On the other hand, billings in marketing/promotion were significantly higher than Q1 FY2021 due to contributions from large-scale projects, and billings in Internet media were also higher than in Q1 FY2021.

In terms of billings by client industry, "Government/Organizations," "Beverages/Cigarettes," and "Food Services/Other Services" increased significantly YoY, while "Automobiles/Transportation Equipment/Related Products," which were severely affected by the stagnation of supply chains, decreased YoY. As a result, the total number of industries that recorded YoY increase was 11 out of 21. (Note 3)

Gross profit was 84,420 million (up 7.9%), an increase of 6,180 million from Q1 FY2021. Gross profit from domestic operations increased by 4.9% to 64,518 million, and from overseas operations increased by 22.2% to 21,244 million, due to a recovery trend in North America and Greater China, as well as the expansion of the scope of consolidation. Operating income was 11,458 million (down 5.2% YoY) as a result of an increase in SG&A expenses due to strategic investments for medium-term growth and the return of activity expenses, and ordinary income was 13,870 million (up 4.7% YoY) due to foreign exchange gains of 906 million, among other factors.

Income before income taxes and minority interests was 13,574 million (up 1.1% YoY), after adding extraordinary income of 366 million and extraordinary loss of 661 million. Adding the impact of 7,656 million in income taxes and 1,336 million in net income attributable to non-controlling interests, net income attributable to owners of the parent was 4,582 million (down 26.5% YoY).

Notes 1. According to the Survey of Selected Service Industries (Ministry of Economy, Trade and Industry, Japan).

  1. "Billings" is based on the previous accounting standard and is voluntarily disclosed, although it is not in accordance with the ASBJ No.29, since it is useful to users of financial statements.
  2. Based on internal management categories and data compiled by the Company.

2

2.Balance Sheets (June 30, 2022)

(Millions of JPY)

March 31, 2022

June 30, 2022

Comparison with

March 31, 2022

Amount

Share

Amount

Share

Change

(%)

Current assets

754,854

71.7%

626,085

66.8%

-128,768

-17.1%

Fixed assets

298,162

28.3%

310,467

33.2%

12,305

4.1%

Total assets

1,053,016

100.0%

936,553

100.0%

-116,463

-11.1%

Current liabilities

505,640

48.0%

397,967

42.5%

-107,672

-21.3%

Non-current liabilities

159,961

15.2%

156,321

16.7%

-3,639

-2.3%

Total liabilities

665,601

63.2%

554,289

59.2%

-111,312

-16.7%

Total shareholders' equity

319,176

30.3%

317,281

33.9%

-1,895

-0.6%

Accumulated other comprehensive

38,678

3.7%

35,914

3.8%

-2,763

-7.1%

income

Subscription rights to shares

225

0.0%

219

0.0%

-5

-2.5%

Noncontrolling interest

29,335

2.8%

28,848

3.1%

-486

-1.7%

Total net assets

387,414

36.8%

382,263

40.8%

-5,150

-1.3%

Total liabilities and net assets

1,053,016

100.0%

936,553

100.0%

-116,463

-11.1%

3.Consolidated Forecasts for FY 2022 (April 1, 2022 to March 31, 2023)

At this time, we have not revised our consolidated earnings forecast.

Note. The above forecasts are based on certain conditions that we consider reasonable at the time of preparation.

3

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Hakuhodo DY Holdings Inc. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 06:25:03 UTC.