Dentsu Announces Changes to the Forecast of Financial Results for the Fiscal Year Ending December 31, 2017

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)

(Millions of yen)

    Revenue  

Gross
profit

 

Underlying
Operating
Profit

 

Underlying
Net
Profit

 

Underlying
Basic EPS
(Yen)

 

Operating
Profit

 

Net Profit

 

Basic
EPS
(Yen)

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

-

(Reference)
Actual results for prior year

(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)

(Millions of yen)

    Net sales   Gross profit  

Operating
Profit

 

Ordinary
Profit

 

Net
Income

 

Net Income
per Share
(Yen)

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)

-

(Reference)
Actual results for prior year

(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
forecast

  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.


Contacts

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