Dentsu Announces Changes to the Forecast of Financial Results for the Fiscal Year Ending March 31, 2015

TOKYO--()--Dentsu Inc. (TOKYO:4324)(ISIN:JP3551520004)(President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) hereby announces changes to the forecast of financial results for the fiscal year ending March 31, 2015 announced on November 12, 2014, as follows.

1.

 

Changes to the Forecast of Financial Results for the Fiscal Year Ending March 31, 2015

(1) Forecast of Consolidated Financial Results (Japanese GAAP)

(Millions of yen)

    Net sales  

Gross
profit

 

Operating
income
before
amortization
of goodwill
and other
intangible
assets*

 

Operating
income

 

Ordinary
income

 

Net
income

 

Net income
per share
(Yen)

Previously
announced
forecast (A)

2,432,100 651,700 118,300 69,300 76,700 29,400 101.95

Amended
forecast (B)

2,432,100 651,700 117,800 66,900 74,200 40,900 141.83
Variance (B-A) 0 0 (500) (2,400) (2,500) 11,500  

Rate of variance
(%)

0.0 0.0 (0.4) (3.5) (3.3) 39.1  

(Reference)
Actual results for
prior year
(Fiscal year
ended
March 31, 2014)

  2,309,359   594,072   114,186   71,490   82,538   38,800   140.89

*Operating income before amortization of goodwill and other intangible assets comprises the operating income figure to which has been added the amortization of goodwill and other intangible assets incurred through acquisitions.

 

(2) Forecast of Consolidated Financial Results (IFRS)

(Millions of yen)

    Revenue   Gross profit  

Underlying
operating
profit*

 

Operating
profit

 

Profit for the
year
attributable
to the parent
company

 

Basic EPS
(Yen)

Previously
announced
forecast (A)

702,500 655,700 129,700 104,700 60,000 208.07

Amended
forecast (B)

702,500 655,700 128,700 131,700 75,900 263.21
Variance (B-A) 0 0 (1,000) 27,000 15,900  

Rate of variance
(%)

0.0 0.0 (0.8) 25.8 26.5  

(Reference)
Actual results for
prior year
(Fiscal year
ended
March 31, 2014)

  643,284   598,166   126,909   108,599   66,507   230.63

*IFRS Underlying operating profit:
New KPI to measure recurring business performance which is calculated as IFRS operating profit excluding amortization of M&A related intangible assets, impairment loss, gain/loss on sales of non-current assets, acquisition costs and other one-off items

 

(3) Forecast of Non-consolidated Financial Results (Japanese GAAP)

(Millions of yen)

    Net sales  

Operating
income

 

Ordinary
income

  Net income  

Net income
per share
(Yen)

Previously announced forecast (A) 1,544,700 54,300 74,800 48,300 167.50
Amended forecast (B) 1,544,700 51,400 73,000 60,400 209.46
Variance (B-A) 0 (2,900) (1,800) 12,100  
Rate of variance (%) 0.0 (5.3) (2.4) 25.1  

(Reference)
Actual results for prior year
(Fiscal year ended March 31, 2014)

  1,515,062   50,579   69,667   46,953   170.49
 

2.  Reason
Although Dentsu’s overseas business is steady, its domestic business, when looked at on a non-consolidated basis in particular, is expected to fall below the original forecast. In addition, a gain of approximately 24.1 billion yen on a consolidated basis and 19.8 billion yen on a non-consolidated basis (Japanese GAAP) on sales of non-current assets was recorded in the third quarter of the fiscal year ending March 2015. These circumstances were among the factors that led to the above changes to the forecast of financial results. On an IFRS basis, a gain of approximately 29.4 billion yen on sales of non-current assets was realized.

Note
The forecasts of net sales and income provided in this document have been calculated based on judgments and assumptions made using currently available information such as industry trends and client circumstances. Therefore, actual sales and income may differ from the forecasts due to uncertain elements inherent in the forecasts as well as other factors including changes in the domestic or overseas economic conditions of business operations going forward.

Contacts

Dentsu Inc.
Shusaku Kannan, (813) 6216-8042
Senior Manager
Corporate Communications Division
s.kannan@dentsu.co.jp

Contacts

Dentsu Inc.
Shusaku Kannan, (813) 6216-8042
Senior Manager
Corporate Communications Division
s.kannan@dentsu.co.jp