Financial Data Summary

Consolidated financial data

(Millions of yen)

  20151 2016 2017 2018 2019 2020 2021

Profit and loss statement

             

Turnover

4,990,854 4,924,933 5,187,300 5,357,278 5,146,802 4,498,216 5,256,492

Revenue

818,566 838,359 928,841 1,018,512 1,047,881 939,243 1,085,592

Net revenue

761,996 789,043 877,622 932,680 939,385 835,042 976,577

Operating profit (loss)

128,212 137,681 137,392 111,638 (3,358) (140,625) 241,841

Profit (loss) before tax

126,739 132,918 149,662 148,751 (42,769) (141,133) 208,833

Profit (loss) for the year attributable to owners of the parent

83,090 83,501 105,478 90,316 (80,893) (159,596) 108,389

Underlying EBITDA2

145,335 195,006

Underlying operating profit3

160,438 166,565 163,946 153,229 140,751 123,979 179,028

Underlying net profit4

113,388 112,972 107,874 97,419 76,120 69,890 109,203
               
Balance sheet              

Total assets

3,066,075 3,155,230 3,562,857 3,638,488 3,795,729 3,380,412 3,720,536

Total equity attributable to owners of the parent

1,068,216 932,742 1,093,211 1,047,619 974,977 756,870 845,034
               
Cash flow              

Net cash flow from operating activities

143,585 141,557 133,049 79,957 88,313 139,715

Net cash flow from investing activities

(156,161) (85,531) (61,382) (76,051) 137,013 262,226

Net cash flow from financing activities

2,539 1,226 57,522 (7,803) (96,622) (232,189)

Cash and cash equivalents at end of period

242,410 305,760 416,668 414,055 530,692 723,541

Number of employees

47,324 55,843 60,064 62,608 66,400 64,533 64,832

Number of consolidated subsidiaries

760 844 911 976 1,004 1,007 907
  • 1 2015 is reported on a pro forma basis.
  • 2 Underlying EBITDA: Underlying operating profit before depreciation and amortization (excluding depreciation adjustments under IFRS 16).
  • 3 Underlying Operating Profit: KPI calculated by eliminating M&A related items and one-off items from operating profit, and is used by management for the purpose of measuring constant business performance.
    M&A related items: amortization of intangible assets incurred in acquisitions, acquisition costs, share-based compensation expenses attributable to the acquiree, share-based compensation expense issued following the acquisition of 100% ownership of a subsidiary
    One-off items: items such as restructuring costs, impairment loss and gain/loss on sales of non-current assets
  • 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, gain/loss on sales of shares of associates, tax-related and NCI profit-related and other one-off items.

Note: The Group has adopted IFRS 15 “Revenue from Contracts with Customers” from the fiscal year ended December 31, 2018, and IFRS 16 “Leases” from the fiscal year ended December 31, 2019. The figures for prior years are not restated and based on the former standards.

Note: The Group has traditionally recognized configuration or customization costs in cloud computing contracts as intangible assets by applying IAS 38 “Intangible Assets.” However, based on the discussions that led to the agenda decision by the IFRS Interpretations Committee announced in April 2021, the method has been changed so as to recognize the costs of receiving configuration or customization services as expenses. However, in this report, figures prior to the fiscal year ended December 31, 2020 are presented as before the change in accounting policy. Thus, figures from the fiscal year ended December 31, 2020 differ from figures in the Summary of Financial Results for the Fiscal Year Ended December 31, 2021 where the presentation was retrospectively restated.

(%)

  20151 2016 2017 2018 2019 2020 2021

Organic growth rate2

7.0 5.1 0.1 3.4 (1.0) (11.1) 13.1
  Dentsu Japan Network 3.9 4.5 (0.3) 2.1 0.4 (8.4) 17.9
  Dentsu International 9.4 5.7 0.4 4.3 (1.9) (13.0) 9.7

CT&T3 ratio

27.5 29.1
  Dentsu Japan Network 24.5 24.4
  Dentsu International 29.7 32.6

Operating margin4

21.1 21.1 18.7 16.4 15.0 14.8 18.3
  Dentsu Japan Network 26.0 26.8 24.5 21.7 19.1 18.0 22.9
  Dentsu International 16.9 16.2 14.6 12.9 12.2 13.7 15.9

Underlying ROE5

10.6 11.3 10.6 9.1 7.5 8.1 13.8

Return on assets (ROA)6

4.3 4.5 4.1 (1.2) (3.9) 5.9

Ratio of equity attributable to owners of the parent (equity ratio) 7

34.8 29.6 30.7 28.8 25.7 22.4 22.7

Basic earnings per share (yen)

289.95 292.85 373.11 320.39 (287.92) (571.19) 388.79

Basic underlying profit per share (yen)

395.67 396.20 381.58 345.59 270.94 250.14 391.71

Cash dividend per share (yen)

75.00 85.00 90.00 90.00 95.00 71.25 117.50

Dividend payout ratio8

25.9 29.0 24.1 28.1 30.2

Underlying dividend payout ratio9

19.0 21.5 23.6 26.0 35.1 28.5 30.0
  • 1 2015 is reported on a pro forma basis.
  • 2 Organic 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.
  • 3 CT&T (Customer Transformation & Technology): high growth business domain including the services related to marketing technology, customer experience management, commerce, system integration, and transformation & growth strategy.
  • 4 Operating margin = Underlying operating profit ÷ Net revenue x 100
  • 5 Underlying ROE = Underlying net profit (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 x 100
    (Fiscal year-end before alignment across the Group means March)
  • 6 ROA (IFRS) = Profit before tax ÷ Average total assets based on total assets at the beginning and end of the fiscal year x 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 x 100
  • 9 Underlying dividend payout ratio = Cash dividend per share ÷ Basic underlying profit per share x 100
Organic growth rate
CT&T ratio
Operating margin
Underlying ROE
Cash dividend per share / Dividend payout ratio /
Underlying dividend payout ratio