Mid-Term Management Plan Update 2026～2028

as of September 17, 2026

Dentsu Group Inc. announced an update to its Mid-Term Management Plan covering the three-year period from FY2026 to FY2028. A summary of the plan is provided below.

Positioning of the Mid-Term Management Plan Update 2026-2028

This update to our Mid-Term Management Plan has been redesigned as a plan for 2026-2028, while maintaining the core policies we outlined in the Mid-Term Management Plan 2025-2027 announced in February 2025. It prioritizes restoring profitability and improving our financial soundness.

By reviewing initiatives we have undertaken since 2025, we aim to establish the foundation for renewed growth over the three years through 2028 and achieve sustainable long-term growth.

The Strategy to Realize dentsu's Ambition

To realize our ambition of becoming “the Growth Parter that drives the greatest impact for clients, partners, and society,” we will focus on improving financial soundness and strengthening the foundation for sustainable competitiveness. We will accelerate structural transformation, with the highest priority on simplifying the organization, optimizing our business portfolio, while enhancing profitability through operating model reforms and productivity improvements. The resources generated through these efforts will be redeployed into priority areas to strengthen our capabilities and develop new revenue models. In parallel, we will deepen alliances with partners and expand the application of AI to build the foundation required for sustainable growth.

Roles and Strategies of Each Region

While our ambition to become “the Growth Parter that drives the greatest impact for clients, partners, and society” is shared across dentsu globally, the path to achieving it will be tailored to the competitive environment of each region.

In Japan, as the core of the Group, we will further strengthen our largest profit base. The Americas will serve as a key engine of global growth through Media and CXM. EMEA will focus on restoring market share and profitability. APAC will build the foundation for its next phase of growth through stronger cross-market collaboration and focused investment in growth opportunities.

By each of the four regions fulfilling its respective role, we aim to drive growth across the Group as a whole.

dentsu's Value Creation Framework

Our clients' business growth is always at the center of the value dentsu provides. We achieve this by supporting both customer acquisition and the development of lasting customer relationships. With our media-centered businesses as a global core, we will define a set of core offerings and deploy AI-enabled capabilities consistently across all markets.

As AI continues to reshape the business environment, it is becoming increasingly important to help clients build stronger connections with consumers and transform their businesses. In markets where dentsu has a clear competitive advantage, we will also strengthen areas such as Sports & Entertainment, which help create deeper connections with consumers, as well as business transformation capabilities.

We will define what needs to be delivered across all markets and where we should go further in our priority markets, and we will translate those choices into consistent value creation.

dentsu's Strengths

One of our key strengths is our talent with deep expertise, capabilities, and global network. Another is our ability to build on long-standing relationships of trust with clients and partners and provide services in an open, client-first way, tailored to each client’s environment and needs.

We will clearly define where we can demonstrate a competitive advantage at the regional and market level. Through deep expertise and consistent delivery of tangible results, we will build client trust and create value as a partner that supports their sustainable growth.

Key Financial Targets

We will place particular emphasis on our operating margin as our KPIs for 2028. To achieve our target of 16%, we will continue to reduce operating costs through the rebuilding of our management foundation. We also plan to reduce Global headquarters costs by approximately 30% compared with our fiscal year 2026 plan and aim for all four regions to be in a position to contribute to shareholder value creation by fiscal year 2028. In addition, we will further accelerate the adoption of AI and Data & Technology and improve productivity per employee. Through these initiatives, we aim to achieve organic growth of 2% to 3%.

Alongside these business growth initiatives, our disciplined approach to financial policy and capital allocation, as well as our commitments to governance, sustainability, and human capital management, will establish a strong business and client foundation for our next stage of growth.