Mid-Term Management Plan
2025-2027
Designed to create a strong growth trajectory with a renewed prioritization of the business portfolio

Dentsu Group Inc. has announced a Mid-Term Management Plan covering the period from fiscal 2025 to 2027. Below is an outline of the MTMP.

Mid-Term Management Plan 2025-2027 Materials

Mid-Term Management Plan 2025-2027 in Context

The aim of this new Mid-Term Management Plan is to review its past M&A-focused growth strategy and return to strong organic growth. With the recognition that dentsu’s position has relatively shifted in the face of intensifying competition with an emergence of highly-scaled players both within and outside the industry accompanied by large-scale investments made by tech and consulting companies, particularly in the field of AI, dentsu has reviewed the business portfolio, is focusing our capital and talents to regain competitiveness, and aims to return to a strong growth trajectory in three years.

Reevaluating Underperforming Businesses, and rebuilding the Business Foundation

In 2025, the first year of the new Mid-Term Management Plan, dentsu will focus on restoring profitability and competitiveness in its International business (Americas, EMEA, and APAC) through the reevaluation of underperforming businesses globally as well as by rebuilding the business foundation.

Business Strategy

Dentsu's strengths are threefold:

1. Placing client-centricity at the heart of every part of the business in order to promote strong relationships of trust and a deep understanding of client needs.
2. Acting as a true innovation partner to clients as they seek exponential growth to gain an outsized advantage in their market and to develop new categories and revenue streams.
3. Being intensely focused on achieving results through a skilled and talented team, whether it be boosting sales, transforming organizations, or fostering positive societal change.

By leveraging these strengths, dentsu aims to become a network that wins globally by growing locally via an allocation of capital and talent in the following areas:

1. Markets: Japan and the United States, where dentsu has a large revenue base with an abundance of business assets.
2. Clients: Large and medium-sized clients.
3. Capability: the enhancement of the added value of the Media domain, which is the core of delivering Integrated Growth Solutions (IGS) in the International business.

Dentsu will grow globally by accumulating local successes.

Key Financial Targets

Dentsu has laid out the following key financial targets to be achieved by FY2027:

1. Organic growth: 4.0%
2. Operating margin: 16-17%
3. Operating cash flow for the year: 140 billion yen
4. ROE: mid-teens range

Dentsu will sustainably enhance corporate value by committing to achieve business growth as indicated by these targets, a sound financial policy and capital allocation, as well as corporate governance, sustainability, and talent management.