Hakuhodo DY : Presentation Material(Financial) for FY2020

Consolidated Financial Highlights

Fiscal Year Ending March 31, 2021

(FY 2020)

May 13, 2021

Hakuhodo DY Holdings, Inc.

Consolidated Results Highlights of FY 2020

FY2020 Summary

Profits up by top line recovery after the second half year.

- On a year-to-date basis, billings decreased 11.5% due to the impact of spread of COVID-19.

- Gross profit margin improved by 1.5 points due to successful efforts to improve profitability. Gross profit decreased by 5.5% year on year*.

- Both billings and Gross profit bottomed out in Q1 and have been on a recovery trend, which became more pronounced in the second half year. Both billings and gross profit were higher than the previous year due to a recovery trend but the large-scale projects in Q4 (*).

- Continued to control costs, mainly by reducing executive compensation, bonus provisions, and activity expenses

such as travel and entertainment expenses. Excluding the impact of changes in the scope of consolidation and

amortization of goodwill, SG&A expenses were reduced by ¥15.3 billion YoY.

- Operating income on a YTD basis decreased 18.3% YoY to ¥45 billion. Excluding the investment business, operating income was ¥39.2 billion (decreased 18.2% YoY).

- Operating income excluding the investment business on a forth quarter (3 months) basis was ¥26 billion, up from the same period last year.

- (*) Excluding investment business

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FY2020 Income Statements Highlight

▶ See p.17 for details.

（Millions of JPY）		Actual		YOY			Difference from Forecast *
Billings	1,297,947	-168,301	-11.5%	+37,947	+3.0%
Operating Income	45,033	-10,098	-18.3%	+15,033	+50.1%
Ordinary Income	49,594	-8,506	-14.6%	+16,594	+50.3%
Net Income Attributable to Owners of Parent	26,479	-18,413	-41.0%	+6,479	+32.4%

- Billings decreased by 11.5% year-on-year due to the spread of COVID-19.

• Operating profit was ¥45 billion, despite a 18.3% decrease from previous year.
• Net income attributable to owners of parent was ¥26.4 billion yen, these profits were much higher than company forecast.

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FY2020 Results (Excluding Investment Business)

▶ See p.18 for details.

(Millions of JPY)

Actual

YOY

Revenue & Operating Income before amortization of

goodwill by quarter

Billings	1,291,822	-166,796	-11.4%
Gross Profit	307,350	-17,963	-5.5%
Gross Margin	23.8%	+1.5pt
SGA	268,116	-9,251	-3.3%
Operating Income	39,233	-8,711	-18.2%
Operating Margin	12.8%	-2.0pt
Amortization of Goodwill*	9,332	+293	+3.2%
Operating Income	48,565	-8,418	-14.8%
before Amortization of G/W
Operating Margin	15.8%	-1.7pt

before Amortization of G/W

（millions of JPY）

- Billings decreased by 11.4%, Gross profit decreased by 5.5% and Gross profit margin improved by 1.5 points.

• Although SG&A expenses were reduced by ¥9.2 billion year-on-year, this was not enough to offset the decline in the top line, resulting in a ¥8.7 billion decrease in operating profit.
• Operating profit before goodwill amortization was ¥48.5 billion.

* Amortization of goodwill represents the total of goodwill amortization required under Japanese GAAP and amortization of intangible assets following business combinations.

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