Hakuhodo DY : Presentation Material (Financial) for 1Q of FY2022

Consolidated Financial Highlights

FY2022 First Quarter (April-June, 2022)

August 9, 2022

Hakuhodo DY Holdings, Inc.

Consolidated Results Highlights of Q1 FY 2022

FY2022 Q1 Summary

Top-line growth continued, however, SG&A expenses increased due to strategic spending and

other factors, resulting in increased billings and decreased profits.

- The recovery in domestic advertising demand continued, although there were signs of a partial reduction in placements against the supply chain stagnation and rising resource prices. Billings increased by 6.8% YoY, partly

due to the boost from overseas operations. *

- Gross margin improved by 0.3pt, up by 8.2% YoY. *

- In Japan, billings from the four mass media businesses decreased YoY, but billings from Internet media, outdoor media, and non-media businesses such as marketing/promotion increased YoY.

- Overseas, in addition to the continued recovery trend, the impact of foreign exchange fluctuations and M&As also boosted performance.

- SG&A expenses increased by 10.3% YoY due to strategic spending and the return of activity expenses, and operating income decreased by 7.2% YoY. *

(*) These numbers are calculated based on excluding the investment business

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Topics

Strengthen our group function

・HAKUHODO Technologies began operations.

- SOLDOUT became a consolidated subsidiary* and ADWAYS became an equity

method affiliate.

(※) P/L will be incorporated from the second quarter

Strengthen our global network

・Hakuhodo acquired Kingdom Digital Solutions in Malaysia.

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Topics

Strengthen capability in XR domain

・DAC launched Japan's first ad sales in the Metaverse domain in partnership with Super League Gaming, Inc.

・Hakuhodo DY Holdings signed capital and business alliance agreement with VRC.

Utilization of Brock chain

・Hakuhodo launched support for companies entering the Web 3.0 market using Japan's first blockchain, Astar Network.

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