Presentation Material(Financial) for 1H FY2021

Consolidated Financial Highlights FY2021 First-half(April-Sep., 2021)

November 11, 2021

Hakuhodo DY Holdings, Inc.

Consolidated Results Highlights of 1H FY 2021

1H FY2021 Summary

Recovery trend from COVID-19 continues, with significant increases in both billings and profits.

• Significant increase in both billings and profit due to recovery in advertising demand and contribution from Government/Organizations sector business.
• Top line recovered to the level of 1H FY2019, and gross margin improved. Gross profit exceeded 1H FY2019.
• Gross profit and operating income, excluding investment business, achieved record highs for the 1H.
• In Japan, Internet media continued to grow strongly, and marketing/promotion increased significantly due to COVID-related and Olympics-related business. TV and creative also recovered.
• In overseas, there was a recovery trend in Greater China and North America, and M&A also boosted billings.
• Billings, excluding the investment business, increased by 24.2% YoY.
• Gross profit increased by 30.3% YoY, outperforming the 1H FY2019 by 7.9%*.
• SG&A expenses were limited to an 8.2% increase, and operating income increased by ¥27.0 billion. Operating income exceeded by 45% from 1H FY2019(*).
• Excluding the investment business, operating income and operating income before amortization of goodwill achieved record highs.

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

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1H FY2021 Income Statements Highlight

（Millions of JPY）		Actual			YOY
Billings	661,373	+127,308	+23.8%
Revenue	370,902	+83,042	+28.8%
Operating Income	28,249	+26,449	+1468.9%
Ordinary Income	29,898	+26,185	+705.4%
Net Income Attributable to Owners of Parent	14,557	+17,990	n/a

• Both billings and profit increased significantly following the Q1 FY2021, driven by the recovery of market conditions.
• Billings increased by 23.8% YoY, and revenue increased by 28.8% YoY.
• Operating income increased by ¥26.4 billion YoY to ¥28.2 billion and net income attributable to owners of the parent increased by ¥17.9 billion YoY to ¥14.5 billion.
• Top line recovered to the same level of 1H FY2019, and gross profit achieved a record high.

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1H FY2021 Results (Excluding Investment Business)

(Millions of JPY)

Billings

Revenue

Gross Profit

Gross Margin

SGA

Operating Income

Operating Margin

Amortization of Goodwill*

Operating Income

before Amortization of G/W

Operating Margin

before Amortization of G/W

Actual		YOY		vs FY2019	Gross profit & Operating Income before amortization
						of goodwill by quarter
656,209	+127,848	+24.2%	-3.3%
365,737	+83,582	+29.6%	+0.8%
161,683	+37,557	+30.3%	+7.9%
24.6%		+1.1pt			+2.5pt
138,323	+10,497	+8.2%	+3.4%
23,359	+27,059	n/a	+45.2%
14.4%		+17.4pt			+3.7pt
6,008	+1,079	+21.9%	+12.1%
29,368	+28,139	+2291.0%	+36.9%
18.2%		+17.2pt			+3.9pt

• Billings increased by 24.2% YoY. (-3.3% compared to 1H FY2019)
• Gross profit increased 30.3% YoY and +7.9% compared to 1H FY2019, and a record high for the 1H.
• SG&A expenses increased by only 8.2% YoY, and operating income increased by ¥27.0 billion. (+45.2% compared to 1H FY2019)
• Operating income before amortization of goodwill was ¥29.3 billion, and operating income also reached a record high for 1H.

* 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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