Dentsu
Integrated Report
2019

Dentsu Group Medium-term Direction

The Dentsu Group will play a leading role in the creation of value for all our stakeholders and wider society.

We presented how we plan to drive growth in the medium to long term as a Group in August, 2018. The Dentsu Group aims to be a corporate group that will play a leading role in the creation of value for all our stakeholders and wider society.

Dentsu Group’s Self-Reforms

Dentsu Group’s Self-Reforms

In 2019 and 2020, we will continue our necessary transformation to ensure we have sustainable growth in 2020 and beyond.
The Dentsu Group is committed to creating value for all our stakeholders; our shareholders, our clients, our people and society. To address the changing operating environment, we must innovate our business to reflect the opportunity that presents.

Dentsu Group Moving on to a New Phase

2019 and 2020 will be a key phase for implementing business transformation throughout the Dentsu Group beyond 2020. In these two years, focusing on growth and evolution in our Japan and international businesses, we will continue our necessary transformation to ensure we have sustainable growth through 2020 and beyond.
Simultaneously, we will transition to a new corporate structure which enables us to connect the assets in our Group for maintaining our sustainable growth

Dentsu Group Moving on to a New Phase

Medium-Term Direction for Japan Business

We are promoting the business structure transformation for the Japan business in the medium-term.

Medium-Term Direction for Japan Business

Medium-Term Direction for International Business

We will continue on our current trajectory, with Dentsu Aegis Network’s vision to become 100% digital economy business by 2020. We have 6 key strategic priorities as below. We plan to continue to proactively pursue market transformation opportunities to accelerate our strategy through our ongoing M&A program.

Continue evolving our business to become “100% digital economy” by 2020

Six strategic priorities to promote momentum and growth:

1 Build integrated solutions offering 2 Leverage media partnership and content opportunities 3 Differentiate the business with effective use of data 4 Purposefully grow revenue in high margin, high growth sectors 5 Mitigate cost of complexity 6 Evaluate market transformation opportunities to accelerate our strategy through ongoing M&A program

Guidance up to 2020

Organic growth rate (Revenue less cost of sales)3-year CAGR* up to 2020 3% or higher *compound annual growth rate Operating margin Continual improvement in margin from 2018 Shareholder returns Steady dividend policy Consider returns tracking earnings and CF performance

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