Dentsu : FY2017 Half Year Results

FY2017 Half Year Results

August 9, 2017

• Please be reminded that the figures shown in this presentation may be different from those shown in the financial statements as this presentation has been

  prepared for investors to understand our businesses. Please refer to the annotations in the Appendices for each definition of the indicators.

  Highlights

  • Gross profit increased by 13.1% (YoY, constant currency basis)

  • Organic gross profit growth: -0.4% (Japan -1.1% / International +0.1%)

  • Underlying operating profit decreased by -7.7% (constant currency basis)

  • Underlying operating margin: 15.5%, -350 bps (constant currency basis)

  • Underlying basic EPS decreased by -5.3%

  • Completion of share repurchase: JPY 20.0bn

1

Summary

(JPY mn)

2017

Jan-Jun

2016

Jan-Jun

YoY %

Constant

currency basis %

Turnover

2,464,653

2,371,963 +3.9 -

Revenue

Gross profit

Underlying operating profit Operating margin

Underlying net profit Underlying basic EPS

439,485

414,610

64,354 15.5%

41,010 144.65 yen

393,167	+11.8	-
368,619	+12.5	+13.1
68,612	(6.2)	(7.7)
18.6%	(3.1)	(3.5)
43,559	(5.9)	-
152.77 yen	(5.3)	-

Operating profit

Net profit

EBITDA

45,307

30,712

73,575

58,651	(22.8)	-
35,785	(14.2)	-
79,662	(7.6)	-

Currency
JPY/USD	112.4 yen	111.9 yen	+0.5	-
JPY/GBP	141.4 yen	160.3 yen	(11.8)	-

Note: 2

Net profit, underlying net profit and underlying basic EPS… Excluding attribution to non-controlling interests

Gross Profit Growth

(JPY)

2016

Jan-Jun

Currency

368.6 bn

-2.0 bn

Acquisitions

Organic

2017

Jan-Jun

Gross profit after currency & acquisitions adjustment

416.4bn

+49.8 bn

-1.8 bn

1. bn

   Organic growth

   -0.4%

   3

   Regional Information - Gross Profit -

   (JPY mn)

   2017

   Jan-Jun

   182,467	(1.2)	(1.2)	(1.1)
   19.7%	+2.0	+2.0

   Japan 180,338

   Digital domain ratio 21.7%

   2016

   Jan-Jun

   YoY %

   Constant currency basis %

   Organic growth

   %

   EMEA

   Americas

   APAC

   International total

   Digital domain ratio

   81,829

   97,906

   54,680

   234,398

   58.3%

   71,169 +15.0 +19.9	+2.9
   63,435 +54.3 +52.1	(2.0)
   51,627 +5.9 +5.9	(0.2)
   186,231 +25.9 +27.2	+0.1
   50.1% +8.2 +8.6

   Consolidation adjustments	(126)	(79)	- - -
   Dentsu consolidated total	414,610
   Digital domain ratio	42.4%
   International business ratio	56.5%

   368,619	+12.5	+13.1	(0.4)
   35.0% 50.5%	+7.4 +6.0	+7.6 +6.3

   4

   Regional Information - Underlying Operating Profit -

   (JPY mn)

   Underlying operating profit
   2017 Jan-Jun	Constant 2016 YoY % currency Jan-Jun basis %

   Operating margin
   2017 Jan-Jun	Constant 2016 YoY % currency Jan-Jun basis %

   Japan	47,568	52,399	(9.2)	(9.2)	26.4%	28.7%	(2.3)	(2.3)
   International total	16,807	16,222	+3.6	(3.6)	7.2%	8.7%	(1.5)	(2.3)

   Consolidation adjustments

   (21) (9) - - - - - -

   Dentsu consolidated total

   64,354

   68,612

   (6.2)

   (7.7)

   15.5%

   18.6%

   (3.1)

   (3.5)

   5

   Change in Underlying Operating Margin

   2016

   Jan-Jun

   Japan margin change

   International margin change

   Currency

   Consolidation adjustments, etc.

   2017

   Jan-Jun

   15.5%

   +0.4%

   -1.2%

   -1.3%

   18.6%

   -1.0%

   6

   Operating Margin

   35.0%

   Dentsu consolidated

   Japan International

   35.0%

   30.0%

   25.0%

   24.5% 24.3%

   28.7%

   26.4%

   30.0%

   25.0%

   24.2%

   26.0%26.8%

   22.4%

   20.0%

   15.0%

   17.8%17.7%

   18.6%

   15.5%

   20.0%

   15.0%

   19.7%

   15.3%

   21.1% 21.1%

   16.9% 16.2%

   18.1%

   15.2%

   10.0%

   5.0%

   10.3%

   11.9%

   8.7%

   7.2%

   10.0%

   5.0%

   0.0%	0.0%
   Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec
   2014	2015	2016	2017	2014	2015	2016	2017

   Latest forecast 7

   (announced in Aug)

   Reconciliation from Underlying OP to Statutory OP

   (JPY mn)

   2017

   Jan-Jun

   2016

   Jan-Jun

   YoY # YoY %

   Underlying operating profit

   64,354

   68,612

   (4,257) (6.2)

   Adjustment items

   Amortization of M&A related intangible assets Acquisition costs Share-based compensation expenses related to acquired companies One-off items

   Gain (loss) on sales and retirement of non-current assets Gain (loss) on sales of shares of subsidiaries and associates Impairment loss Others

   (19,047)

   (16,258) (743) (1,473) (573)

   + 629 (114) (689) (399)

   (9,961)

   (10,736) (637) - + 1,412

   + 1,446 + 744 (56) (722)

   (9,085)

   (5,522) (105) (1,473) (1,985)

   (817) (859) (632) + 323

   Operating profit

   45,307

   58,651

   (13,343) (22.8)

   8

   Statutory Operating Profit to Net Profit

   (JPY mn)

   2017

   Jan-Jun

   2016

   Jan-Jun

   YoY # YoY %

   Operating profit

   Share of results of associates

   Profit before interest and tax

   Net finance income (costs) Finance income Finance costs

   Profit before tax

   Income tax expense

   Net profit

   Attributable to owners of the parent

   Attributable to non-controlling interests

   45,307
   1,661
   46,969
   1,448 8,718 7,270
   48,417
   15,364
   33,053
   30,712
   2,340

   58,651
   1,437
   60,088
   (3,280) 4,029 7,309
   56,808
   17,753
   39,054
   35,785
   3,269

   (13,343)	(22.8)
   + 224	+15.6
   (13,119)	(21.8)
   + 4,728 + 4,689 (39)	- +116.4 (0.5)
   (8,390)	(14.8)
   (2,389)	(13.5)
   (6,001)	(15.4)
   (5,072)	(14.2)
   (928)	(28.4)

   9

   Cash Flow

   (JPY mn)

   2017

   Jan-Jun

   2016

   Jan-Jun

   YoY # YoY %

   Profit before tax	48,417	56,808	(8,390)	(14.8)
   Share of results of associates	(1,661)	(1,437)	(224)
   Depreciation and amortization	27,578	20,954	+ 6,624
   Impairment loss	689	56	+ 632
   Others	(4,205)	(1,174)	(3,031)
   Income taxes paid	(35,275)	(18,614)	(16,661)

   Cash flow from operations before change in WC ⅰ

   35,543

   56,566

   (21,022) (37.2)

   10

   Use of Cash

   (JPY mn)

   2017

   Jan-Jun

   2016

   Jan-Jun

   YoY # YoY %

   Change in WC ⅱ	(5,633)	22,503	(28,137)
   Payments for PPE, intangible assets and investment property (net)	(8,093)	(5,396)	(2,697)
   Payments for investing activities (net)	(39,424)	(27,055)	(12,369)
   Dividends paid to shareholders	(12,831)	(11,405)	(1,425)
   Dividends paid to non-controlling shareholders	(1,877)	(2,734)	+ 856
   Payments for share repurchase	(20,009)	(4)	(20,004)
   Use of cash ⅲ	(82,236)	(46,595)	(35,640)	+76.5

   Effect of exchange rate changes and others ⅳ

   6,573

   10,556

   (3,983)

   Change in net cash ⅰ (preceding slide)+ⅱ+ⅲ+ⅳ	(45,753)	43,030	(88,784)	-
   (Acquisition payments)
   Initial payments	(26,221)	(7,392)	(18,829)
   Earn-out payments / Additional acquisition payments	(5,300)	(21,759)	+ 16,458
   Proceeds from sales	55	5,277	(5,222)

   Notes: "Payments for PPE (property, plant and equipment), intangible assets and investment property (net)" and "Payments for investing activities (net)" are shown as net figures of payments and proceeds by disposal of PPE/intangible assets/investment property and businesses/subsidiaries.

   "Effect of exchange rate changes and others"… Including effect of exchange rate changes from debt and net cash 11

   that acquired companies had held.

   2017

   End of Jun

   Net Debt

   Total debt 451,441

   Cash and cash equivalents 244,500

   Net debt 206,941

   2016

   End of Dec

   (JPY mn)

   Var. #

   Total debt (LTM average)

   Cash and cash equivalents (LTM average) Net debt (LTM average)

   411,171

   234,730

   176,441

   403,599 242,410	+ 47,842 + 2,089
   161,188	+ 45,753

   367,196 + 43,975

   241,866 (7,136)

   125,329 + 51,111

   EBITDA (LTM)

   177,978

   184,064 (6,086)

   Net debt / EBITDA (LTM) 1.16 0.88

   Net debt (LTM average) / EBITDA (LTM) 0.99 0.68

   Notes: LTM average… Average of last twelve months

   LTM… Last twelve months 12

   Dividend

   100

   90

   80

   70

   60

   50

   40

   30

   20

   33

   (16)

   10.8%

   55

   (20)

   17.1%

   75

   (35)

   19.0%

   85

   (40)

   21.5%

   90

   (45)

   24.0%

   40.0%

   30.0%

   20.0%

   10.0%

   10

   0

   FY2013

   actual

   FY2014

   actual

   2015

   Jan-Dec

   actual

   2016

   Jan-Dec

   actual

   2017

   Jan-Dec

   forecast

   0.0%

   Notes:

   Annual dividend per share Payout ratio

   Payout ratio… Based on underlying net profit attributable to owners of the parent 13

   ( )… Interim dividend per share

   FY2017 Forecast

   (JPY mn)

   Revenue

   Gross profit Japan International total

   Underlying operating profit Japan International total

   Operating margin Japan International total

   Underlying net profit Underlying basic EPS

   Operating profit

   Net profit

   2017 Jan-Dec
   933,000
   884,000 358,700 525,300
   160,300 80,300 80,000
   18.1% 22.4% 15.2%
   105,900 374.60 yen
   136,500
   86,800

   Previous forecast (Feb)	Variance %
   978,500	(4.6)
   929,500	(4.9)
   360,400	(0.5)
   569,100	(7.7)
   168,900	(5.1)
   81,200	(1.1)
   87,700	(8.8)
   18.2%	(0.1)
   22.5%	(0.1)
   15.4%	(0.2)
   111,800	(5.3)
   392.09 yen	(4.5)
   151,500	(9.9)
   86,600	+0.2

   2016 Jan-Dec	YoY %	Constant currency basis %
   838,359	+11.3	-
   789,043	+12.0	+10.8
   363,242	(1.3)	(1.3)
   426,014	+23.3	+20.8
   166,565	(3.8)	(5.1)
   97,362	(17.5)	(17.5)
   69,059	+15.8	+11.7
   21.1%	(3.0)	(3.1)
   26.8%	(4.4)	(4.4)
   16.2%	(1.0)	(1.3)
   112,972	(6.3)	-
   396.20 yen	(5.5)	-
   137,681	(0.9)	-
   83,501	+4.0	-

   Currency	Av. Jan-Jun in 2017	Av. Jan in 2017	Av. Jan-Dec in 2016
   JPY/USD	112.4 yen	114.8 yen	(2.1)	108.9 yen	+3.2	-
   JPY/GBP	141.4 yen	141.6 yen	(0.2)	147.8 yen	(4.3)	-

   Note: 14

   Net profit, underlying net profit and underlying basic EPS … Excluding attribution to non-controlling interests

   Forward-Looking Statements

   Disclaimer

   This presentation contains statements about Dentsu that are or may be forward-looking statements. All statements other than statements of historical facts included in this presentation may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or, words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements include statements relating to the following: information on future capital expenditures, expenses, revenues, earnings, synergies, economic performance, and future prospects.

   Such forward-looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

   Risks, uncertainties or other factors that could cause actual results to differ materially from those expressed in any forward-looking statement include, without limitation

   ⅰ Risk related to fluctuations in the economic and business environment ⅱ Risk related to structural changes in the media

   ⅲ Risk related to our ability to realize our financial targets

   ⅳ Risk related to common business practices

   ⅴ Risk related to competition among advertising agencies

   ⅵ Risk related to the development of systems and databases ⅶ Risk related to legal or regulatory changes

   ⅷ Risk of litigation

   Dentsu disclaims any obligation to update any forward-looking or other statements contained herein, except as required by applicable law.

   15

   Appendices

   Definition

   • Turnover: The gross amounts billable to clients handled by the Group on behalf of clients, with net of discounts, VAT and other sales-related taxes

   • Underlying operating profit: KPI to measure recurring business performance which is calculated as operating profit added with amortization of M&A related intangible assets, acquisition costs, share-based compensation expenses related to acquired companies and one-off items such as impairment loss and gain/loss on sales of non-current assets

   • Operating margin: Underlying operating profit divided by gross profit

   • 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, NCI profit-related and other one-off items

   • Underlying basic EPS: EPS based on underlying net profit (attributable to owners of the parent)

   • EBITDA: Operating profit before depreciation, amortization and impairment losses

   • Constant currency basis: Comparison with the current period where the previous year's numbers are recalculated using the currency exchange rate which is used for the current year's numbers

   • Currency: Currency movements comparing prior period reported gross profit at reported currency to prior period gross profit at constant currency (reported currency of the current year)

   • Acquisitions: The effect of business acquired or disposed of since the beginning of the prior year

   • Organic: Organic growth represents the constant currency year-on-year growth after adjusting for the effect of business acquired or disposed of since the beginning of the prior year. This is calculated by comparing current period reported gross profit to prior period gross profit, adjusted for the pre-acquisition or pre-disposal gross profit as applicable, and stated at constant exchange rate, in order to derive like-for-like growth

17

Quarterly Results

(JPY mn)

2017

Apr-Jun

2017

YoY %

Jan-Mar

YoY %

1,260,292 +5.4

Turnover 1,204,360 +2.4

Revenue	209,672	+8.3
Gross profit	197,349	+8.7
Japan	76,372	(8.2)
International	121,068	+22.9
Underlying operating profit	23,073	(29.7)
Japan	10,979	(42.8)
International	12,109	(11.5)
Operating margin	11.7%	(6.4)
Underlying net profit	15,126	(31.3)

229,813	+15.2
217,261	+16.2
103,966	+4.7
113,329	+29.2
41,281	+15.4
36,589	+10.1
4,698	+84.6
19.0%	(0.1)
25,883	+20.1

Operating profit	13,188	(50.9)
Net profit	12,769	(31.2)
EBITDA	27,440	(26.6)

32,119	+1.0
17,943	+4.2
46,135	+9.1

Note: 18

Net profit, underlying net profit… Excluding attribution to non-controlling interests

Quarterly Gross Profit Organic Growth

Dentsu consolidated total

2017

2016

2015

(%)

2017

Japan

2016

2015

International total

2017 2016 2015

Jan-Mar	+3.9	+5.1	+6.2	+4.7	+5.6	+0.0	+3.1	+4.5	+13.7
Apr-Jun	(4.8)	+9.5	+6.5	(8.1)	+12.2	+1.9	(2.7)	+7.2	+10.2
Jul-Sep	-	+2.7	+4.2	-	+0.3	+1.4	-	+5.2	+6.6
Oct-Dec	-	+3.9	+10.6	-	+1.0	+12.9	-	+5.8	+8.2

International - EMEA

International - Americas

International - APAC

Jan-Mar	+5.8	+10.7	+11.1	+0.6	(2.0)	+10.4	+4.5	+5.2	+22.5
Apr-Jun	(0.3)	+5.0	+16.1	(4.1)	+2.4	+7.9	(3.8)	+16.8	+5.4
Jul-Sep	-	+5.0	+11.0	-	+5.4	+0.1	-	+5.3	+9.3
Oct-Dec	-	+7.5	+11.0	-	+4.4	+2.1	-	+5.6	+11.0

2017

2016

2015

2017

2016

2015

2017

2016

2015

19

Analysis of Underlying Operating Profit

(JPY)

2016 Jan-Jun

Japan_GP Japan_OE International_GP International_OE

Consolidation

adjustments 2017 Jan-Jun

68.6 bn

-2.1 bn

+2.7 bn

-0.0 bn

64.3 bn

+48.1 bn

+47.5 bn

Notes:

GP… Gross profit 20

OE… Operating expenses (selling, general & administrative expenses, other income and other expenses)

Reconciliation from Underlying NP to Statutory NP

(JPY mn)

Underlying net profit	41,010	43,559	(2,549)	(5.9)
Adjustment items	(10,297)	(7,774)	(2,522)
Operating profit adjustments	(19,047)	(9,961)	(9,085)

Loss on revaluation of earnout liabilities and M&A related put-option liabilities

2017

Jan-Jun

2016

Jan-Jun

YoY # YoY %

+ 3,357 (1,920) + 5,277

Related income tax expense + 4,975 + 3,713 + 1,262

Adjustments attributable to non-controlling interests + 417 + 393 + 23

Net profit 30,712 35,785 (5,072) (14.2)

Note: Operating profit adjustments…Please refer to "Reconciliation from Underlying OP to Statutory OP" on page 8

Underlying net profit and net profit… Excluding attribution to non-controlling interests 21

Effective tax rate…Income tax expense divided by Profit before tax

Financial Position

(JPY mn)

2017

End of Jun

2016

End of Dec

Var. # Var. %

Current assets	1,561,145	1,618,111	(56,966)	(3.5)
Non-current assets	1,600,910	1,537,118	+ 63,791	+4.2
Goodwill	755,623	718,717	+ 36,906	+5.1
Intangible assets	276,116	274,074	+ 2,041	+0.7
Total assets	3,162,055	3,155,230	+ 6,825	+0.2
Current liabilities	1,472,434	1,599,235	(126,800)	(7.9)
Non-current liabilities	685,235	574,033	+ 111,202	+19.4
Total liabilities	2,157,670	2,173,269	(15,598)	(0.7)
Owners' interests	956,796	932,742	+ 24,053	+2.6
Non-controlling interests	47,589	49,218	(1,629)	(3.3)
Total equity	1,004,385	981,961	+ 22,424	+2.3
Total liabilities and equity	3,162,055	3,155,230	+ 6,825	+0.2
JPY/USD	112.0 yen	116.5 yen	-	(3.9)
JPY/GBP	145.8 yen	143.0 yen	-	+2.0
22

Results of Parent Company (J-GAAP)

(JPY mn)

2017

Jan-Jun

YoY %

2017

Apr-Jun

YoY %

2017

Jan-Mar

YoY %

Net sales

Gross profit gross profit margin

SG&A

Operating income vs. gross profit

Ordinary income

Income before income taxes

Net income

804,170	(0.6)
114,932 14.3%	(4.6) (0.6)
83,826	(1.1)
31,106 27.1%	(12.8) (2.5)
50,069	(19.4)
50,226	(21.9)
39,314	(24.0)

344,302	(7.7)	459,867	+5.5
45,956	(14.1)	68,976	+3.1
13.3%	(1.0)	15.0%	(0.3)
39,981	(3.2)	43,844	+0.8
5,975	(51.1)	25,131	+7.2
13.0%	(9.8)	36.4%	+1.4
13,669	(16.8)	36,399	(20.3)
13,670	(24.8)	36,555	(20.7)
11,205	(18.5)	28,108	(26.0)

23

Note: SG&A… Selling, general & administrative expenses

Net Sales of Parent Company by Business Category

(J-GAAP)

(JPY mn)

2017 Jan-Jun

YoY %

Apr-Jun

YoY %

Jan-Mar

YoY %

Newspapers

Magazines

Radio

Television Time Spot

Interactive Media

OOH Media

Creative

Marketing/Promotion

Content Services

Others

Total

43,402	(8.5)	16,051	(17.4)	27,351	(2.4)
11,466	(13.1)	5,391	(10.4)	6,075	(15.4)
6,700	(2.3)	3,221	(5.5)	3,479	+0.9
328,504	(3.3)	159,836	(7.1)	168,668	+0.7
137,957	(2.4)	66,349	(3.6)	71,607	(1.2)
190,547	(3.9)	93,486	(9.5)	97,061	+2.1
50,576	+11.9	23,107	+3.8	27,468	+19.6
28,826	(4.0)	12,531	(13.9)	16,294	+5.3
95,985	(4.6)	41,069	(8.1)	54,916	(1.9)
107,347	+4.5	49,412	(1.4)	57,935	+10.1
110,706	+8.6	23,610	(20.0)	87,096	+20.2
20,653	(2.3)	10,071	(7.1)	10,581	+2.8
804,170	(0.6)	344,302	(7.7)	459,867	+5.5

Note:

* Scale of digital domain operations in Japan (including parent company)… Please refer to the "Regional Information - 24

Gross Profit -" slide

Net Sales of Parent Company by Industry

(J-GAAP)

(JPY mn)

2017 Jan-Jun

YoY %

2017 Apr-Jun

YoY %

2017 Jan-Mar

YoY %

113,530 78,760 77,406 70,166 64,904 46,040 42,260 39,713 38,445 34,063 33,917 27,315 26,393 21,382 20,366 69,504	+5.2 (2.1) (4.3) +0.7 +6.8 +8.0 (10.4) (4.5) (10.4) +23.9 (10.5) (1.5) +3.0 (12.5) +10.0 (5.2)	41,361 29,069 42,385 38,564 27,881 20,451 21,342 14,965 15,628 11,458 12,008 11,527 14,026 9,099 5,886 28,643	(8.5) (8.0) (4.4) (0.6) (2.2) +5.6 (11.1) (23.3) (15.5) +16.3 (29.7) (11.8) +4.6 (11.8) (7.4) (13.0)	72,168 49,691 35,021 31,601 37,023 25,588 20,917 24,747 22,817 22,604 21,908 15,787 12,367 12,282 14,479 40,860	+15.2 +1.7 (4.1) +2.4 +14.8 +10.0 (9.8) +12.2 (6.6) +28.1 +5.3 +7.7 +1.3 (13.1) +19.1 +1.2
804,170	(0.6)	344,302	(7.7)	459,867	+5.5

Information/Communications Finance/Insurance Beverages/Cigarettes Cosmetics/Toiletries Foodstuffs Automobiles/Related Products Distribution/Retailing Transportation/Leisure

Food Services/Other Services Real Estate/Housing Facilities Government/Organizations Hobbies/Sporting Goods Pharmaceuticals/Medical Supplies

Home Electric Appliances/AV Equipment Energy/Materials/Machinery Others

Total

25

2017

Jan-Jun

2016

Jan-Jun

Var. %

2017

End of Jun

2016

End of Jun

Var. %

Effects of Currency Exchange Rates

Average rate

Period end rate

JPY/USD

JPY/EUR

JPY/CNY

JPY/GBP

JPY/AUD

112.4 yen	111.9 yen	+0.5
121.6 yen	124.7 yen	(2.4)
16.4 yen	17.1 yen	(4.0)
141.4 yen	160.3 yen	(11.8)
84.8 yen	81.9 yen	+3.5

112.0 yen	116.5 yen	(3.9)
128.0 yen	122.7 yen	+4.3
16.5 yen	16.8 yen	(1.6)
145.8 yen	143.0 yen	+2.0
86.2 yen	84.4 yen	+2.2

Gross profit ratio by currency

(%)

JPY

USD

EUR

GBP

CNY

AUD

Others

Total

FY2017 Jan-Jun

43.5

20.7

8.4

5.9

4.5

3.2

13.8

100.0

26

Summary of Dentsu Aegis Network Ad Spend

(％)

2018 Jan to Dec Market growth forecast	2017 Jan to Dec Market growth forecast
Japan	1.7	1.7
EMEA	3.5	2.7
UK	5.9	4.0
Germany	3.0	2.6
France	2.0	1.6
Spain	3.6	5.0
Americas	4.5	4.0
USA	4.0	3.6
Canada	2.7	3.1
Brazil	5.0	2.1
APAC (excluding Japan)	5.8	5.5
China	5.4	6.0
Australia	4.8	4.1
India	12.2	13.0
Global	4.3	3.8

27

Source: "Dentsu Aegis Network - Ad Spend Forecasts June 2017"