dentsu

Final Presentation

By Sachiyo Yamamura

UCLA Extension Tokyo Center

Business Essentials

Reputation No.1 character

Purpose & Agenda

Purpose : To tell you why Dentsu will be Successful in Japan and globally in the future.

1.Overviews Advertising industry both globally and in Japan2.Dentsu’s business3.Financial Performance vs. Hakuhodo4.The Future Outlook of Dentsu5.Q&A time

$517.0 billion in 2013Total media ad spending worldwideAdvertisements Industry Overview

Advertising Industry Overview

In 2013

・ Japanese ad market 5.9 trillion yen

・World ad ranking

1. U.S.A($184.4) 2. China($45.0) 3. Japan($40.7)

・ Asia Pacific advertising growing 7.0%

・ Online ad up 32%

TV ad’s world share 57.6%

Reference : Nielsen

World sales Ranking

Dentsu’s Business

・ Established in 1901

・ Selling creative advertisements and ad spot

・ Dentsu’s sales share 24% in Japan

・ 59% of sales from mass media

・ Acquired UK’s Aegis Group, 8th in the world in 2013

・ Overseas sales rose to 40% from 16% in just 1 year

Acquired UK’s Aegis Group

Reference:http://www.dentsuaegisnetwork.com/who-we-are/our-businesses.aspx

Financial Performance vs. Hakuhodo

(¥:yen)・ Consolidated Revenue D:1.9 trillion H:1trillion・ Gross Profit Margin D: 345.9 billion H: 175 billion・ Operating Margin D: 16.9% H: 15%・ Capital Adequacy ratio D:26.5% H: 41.9%

Future Outlook of Dentsu

Conclusion

Dentsu can be more successful ・Dentsu has a close relationship with 　　　　 mass media・ Expanding their business globally

Q&A