TOKYO--(BUSINESS WIRE)--Dentsu Inc. (TOKYO:4324)(ISIN: JP3551520004; President & CEO: Toshihiro Yamamoto; Head Office: Tokyo; Capital: 74,609.81 million yen) hereby announces changes to the forecast of financial results for the fiscal year ending December 31, 2017 announced on February 14, 2017, as follows.
1. Changes to the Forecast of Financial Results for the Fiscal Year Ending December 31, 2017
(1) Forecast of Consolidated Financial Results (IFRS) |
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(Millions of yen) |
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Revenue |
Gross |
Underlying |
Underlying |
Underlying |
Operating |
Net Profit |
Basic |
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Previously announced forecast (A) |
978,500 | 929,500 | 168,900 | 111,800 | 392.09 | 151,500 | 86,600 | 303.71 | ||||||||
Amended forecast (B) |
933,000 | 884,000 | 160,300 | 105,900 | 374.60 | 136,500 | 86,800 | 307.04 | ||||||||
Variance (B-A) |
(45,500) |
(45,500) | (8,600) | (5,900) |
- |
(15,000) | 200 |
- |
||||||||
Rate of variance (%) | (4.6) | (4.9) | (5.1) | (5.3) |
- |
(9.9) |
0.2 |
- |
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(Reference) (Fiscal year ended December 31, 2016) |
838,359 | 789,043 | 166,565 | 112,972 | 396.20 | 137,681 | 83,501 | 292.85 |
*Underlying operating profit: KPI to measure recurring business performance which is calculated as operating profit added with amortization of M&A related intangible assets, acquisition costs, share-based compensation expenses related to acquired companies and one-off items such as impairment loss and gain/loss on sales of non-current assets
*Underlying net profit (attributable to owners of the parent): KPI to measure recurring net profit attributable to the owners of the parent which is calculated as net profit (attributable to owners of the parent) added with adjustment items related to operating profit, reevaluation of earn-out liabilities/M&A related put-option liabilities, tax-related, NCI profit-related and other one-off items
(2) Forecast of Non-consolidated Financial Results (Japanese GAAP) |
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(Millions of yen) |
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Net sales | Gross profit |
Operating |
Ordinary |
Net |
Net Income |
|||||||
Previously announced forecast (A) | 1,574,800 | 232,000 | 59,400 | 77,200 | 63,100 | 221.30 | ||||||
Amended forecast (B) | 1,551,800 | 223,300 | 50,500 | 72,100 | 60,900 | 215.42 | ||||||
Variance (B-A) | (23,000) | (8,700) | (8,900) | (5,100) | (2,200) |
- |
||||||
Rate of variance (%) | (1.5) | (3.8) | (15.0) | (6.6) | (3.5) |
- |
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(Reference) (Fiscal year ended December 31, 2016) |
1,600,196 | 234,846 | 64,736 | 97,131 | 91,962 | 322.52 | ||||||
2. Reason
Beginning this year, the movement by clients in industries such as consumer packaged goods to review their global marketing budgets has continued to impact business results. Gross profit, in mainly overseas business, is therefore expected to fall below the original forecast. This is a factor that has led to the above changes in the forecast of financial results.
The currency exchange rate for the revised forecast uses the average rate for the period between January and June 2017.
Previously announced |
Amended forecast | FY 2016 | ||||
JPY/USD | 114.8 yen | 112.4 yen | 108.9 yen | |||
JPY/GBP | 141.6 yen | 141.4 yen | 147.8 yen | |||
Note
The forecasts of consolidated revenue/profit and non-consolidated net sales/profit 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 results 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.