Consolidated Operating Highlights (IFRS)_Dentsu Integrated Report 2017

Consolidated Operating Highlights (IFRS)

Dentsu Inc. and Consolidated Subsidiaries

	Consolidated (Financial reporting basis) IFRS		Consolidated (Calendar year basis (pro forma)) IFRS
	2015/3	2015/12	2014	2015	2016
Turnover	4,642,390	4,513,955	4,642,901	4,990,854	4,924,933
Revenue	728,626	706,469	725,886	818,566	838,359
Gross profit	676,925	669,489	676,882	761,996	789,043
Organic gross profit growth rate(1) Consolidated	5.8％	－	－	7.0％	5.1％
Organic gross profit growth rate Japan	2.2％	－	－	3.9％	4.5％
Organic gross profit growth rate International	10.3％	9.4％	10.3％	9.4％	5.7％
Operating profit	132,305	107,265	137,558	128,212	137,681
Underlying operating profit(2)	131,937	133,328	133,402	160,438	166,565
Operating margin(3) Consolidated	19.5％	19.9％	19.7％	21.1％	21.1％
Operating margin Japan	23.9％	24.7％	24.2％	26.0％	26.8％
Operating margin International	15.3％	16.9％	15.3％	16.9％	16.2％
Profit for the year attributable to owners of the parent	79,846	72,653	81,409	83,090	83,501
Underlying net profit(4)	92,875	94,368	89,179	113,388	112,972
Basic earnings per share	276.89円	254.05円	282.31円	289.95円	292.85円
Basic underlying net profit per share	322.08円	329.98円	309.26円	395.67円	396.20円
Return on equity (ROE)(5)	8.1％	6.8％	8.2％	7.7％	8.3％
Underlying ROE	9.4％	8.8％	9.0％	10.6％	11.3％
ROA(6)	4.6％	3.4％	－	－	4.4％
Ratio of equity attributable to owners of the parent(7)	34.2％	34.8％	－	34.8％	29.6％
Cash dividend per share	55円	75円	55円	75円	85円
Dividend payout ratio(8)	19.9％	29.5％	19.5％	25.9％	29.0％
Underlying dividend payout ratio	17.1％	22.7％	17.8％	19.0％	21.5％

(1) Organic gross profit growth rate represents the constant currency year-on-year growth after adjusting for the effect of business acquired or disposed of since the beginning of the previous year
(2)Underlying operating profit is a KPI to measure recurring business performance which is calculated as operating profit added with amortization of M&A related intangible assets, acquisition costs and one-off items such as impairment loss and gain/loss on sales of non-current assets
(3) Underlying operating profit ÷ Gross profit × 100
(4) Underlying net profit (attributable to owners of the parent): KPI to measure recurring net profit attributable to owners of the parent which is calculated as net profit (attributable to owners of the parent) added with adjustment items related to operating profit, revaluation of earnout liabilities/M&A related put-option liabilities, tax-related and NCI profit-related and other oneoff items
(5) ROE (IFRS) = Profit for the year attributable to owners of the parent ÷ Average equity attributable to owners of the parent based on equity at the beginning and end of the fiscal year × 100
(6) ROA (IFRS) = Profit before tax ÷ Average total assets based on total assets at the beginning and end of the fiscal year × 100
(7) Ratio of equity attributable to owners of the parent = Equity attributable to owners of the parent÷Total assets
(8) Dividend payout ratio = Cash dividend per share ÷ Basic earnings per share × 100

Change in fiscal period

Effective from fiscal 2015, the Company and its subsidiaries with fiscal year-ends other than December 31 have changed their fiscal year-ends to December 31. As a result of this change, the Group’s consolidated fiscal year-end date has been changed from March 31 to December 31, and fiscal 2015 is the nine-month period from April 1, 2015 to December 31, 2015. However, since the fiscal year-end date of Dentsu Aegis Network Ltd. and its subsidiaries, which operate the Group’s international business, was already December 31, the financial results of these companies for the twelve-month period from January 1, 2015 to December 31, 2015 have been consolidated into the Group’s consolidated financial results. [On a financial reporting basis for 2015/12]

As reference figures for the purpose of making comparisons, figures calculated on the assumption that the Group’s accounting periods for both fiscal 2014 and fiscal 2015 covered January 1 to December 31 are provided. [On a calendar year basis] Figures for fiscal 2016 from the period covering January 1 to December 31 are provided on a financial reporting basis.

Financial reporting basis (fiscal 2014 and 2015)

	2014				2015
	Jan. - Mar.	Apr. – Jun.	Jul. – Sep.	Oct. – Dec	Jan. - Mar.	Apr. – Jun.	Jul. – Sep.	Oct. – Dec
Japan business		2015/3 (Financial reporting basis)				2015/12 (Financial reporting basis)
International business		2015/3 (Financial reporting basis)				2015/12 (Financial reporting basis)

2015/3: Japan business Apr.–Mar. (twelve months) + International business Jan.–Dec. (twelve months)
2015/12: Japan business Apr.–Dec. (nine months) + International business Jan.–Dec. (twelve months)
Note: Financial report for fiscal 2016 is provided on a calendar year basis.

Calendar year basis (pro forma)

	2014and2015				2016
	Jan. - Mar.	Apr. – Jun.	Jul. – Sep.	Oct. – Dec	Jan. - Mar.	Apr. – Jun.	Jul. – Sep.	Oct. – Dec
Japan business	2014 & 2015 (Pro forma basis)				2016/12 (Financial reporting basis)
International business	2014 & 2015 (Pro forma basis)				2016/12 (Financial reporting basis)

2014: Japan business Jan.–Dec. (twelve months) + International business Jan.–Dec. (twelve months)
2015: Japan business Jan.–Dec. (twelve months) + International business Jan.–Dec. (twelve months)
2016/12: Japan business Jan.–Dec. (twelve months) + International business Jan.–Dec. (twelve months)
Note: 2014 and 2015 are reported on a pro forma basis, and 2016/12 is reported on a financial reporting basis.