Dentsu

Dentsu Group Inc. (Tokyo: 4,324; ISIN: JP3551520004) - Japanese advertising and communication holding.

Aktivs

Led by Dentsu Group Inc., established on January 1, 2020, the holding company Dentsu Group includes two operating networks (data for July 2020):

• Dentsu Japan Network, which oversees Dentsu's activities in Japan,
• Dentsu Aegis Network, headquartered in London, which oversees the activities of Dentsu's agency business outside Japan.

With offices in 145 countries and on 5 continents, a team of almost 66,000 people, Dentsu holding provides a wide range of consumer-oriented services in the field of integrated communications, media and digital through 10 global agency brands: Carat, Dentsu, dentsuX,, Isobar, iProspect dentsumcgarrybowen,, Merkle MKTG, and, Posterscope Vizeum and through Dentsu Japan Network companies, including Dentsu Inc., a mono-brand agency. The group is also engaged in the production marketing and sports and entertainment content on a global scale.

Business in Russia

In Russia for 2021, the holding is represented by:

• communication group Dentsu Russia (formerly Dentsu Aegis Network Russia) and
• Dentsu Entertainment Eurasia Partners (DEEP) is a joint venture between Dentsu Group and OKS Group.

History

2023: Accused of participating in the cartel in organizing the Olympics

On February 28, 2023 Japan , prosecutors accused Dentsu of participating in the cartel in the organization. Tokyo Olympics The allegations came as part of an expanding corruption investigation surrounding the sports competition that took place in 2021.

It is noted that the Japanese advertising giant Dentsu was one of the driving forces of the Olympic Games in Tokyo, helped to raise a record $3.6 billion in sponsorship and coordinate everything to the smallest detail.

Dentsu cartel involvement charges linked to bid collusion

Dentsu's charges in early 2023 involve bidding collusion, with Japanese prosecutors alleging collusion by employees of Dentsu and other companies, including Japan's second-largest advertising firm, Hakuhodo. Tokyu Agency and Cerespo were also included in the list of defendants, they violated the country's antitrust law by bypassing the process of public bidding at test events before the Olympic Games in 2021. The events were dress rehearsals designed to help organizers assess their readiness to host the main event in Japan. Executives or managers of each of the accused companies, as well as an official of the Tokyo Olympic organizing committee, were accused of violating antitrust laws.

Tokyo organizers claim that they spent $13 billion on organizing the 2020 Olympic Games, which were postponed for a year due to the COVID-19 pandemic. However, according to Japan's government audit, the costs could have been double that. At least 60% was public money. The scandal in Tokyo undermined the chances of the northern city of Sapporo to host the 2030 Olympics, before the investigation he was the favorite.

Instead of engaging in open competition for contracts, the companies conspired to select one firm to bid for, Japan prosecutors said in a statement. At the same time, they significantly limited competition, the prosecutor's office added.

The maximum punishment for a company found guilty of collusion at the auction is a fine of up to $3.7 million. An individual, if found guilty, faces up to five years in prison and a fine of up to $37 thousand.

In a statement on February 28, 2023 on its website, Dentsu said it took this situation seriously and offered its sincere apologies to its business partners, shareholders and all other relevant parties for any inconvenience or concerns this may cause. It also said the company had set up a committee to investigate Dentsu's conduct and asked some senior executives to return some of their remuneration.^[1]

2020

Joint investment with Skolkovo of 1.5 billion rubles in Russian IT startups

On August 25, 2020, the Japanese holding Dentsu and Skolkovo announced the investment of 1.5 billion rubles in Russian technology startups. To do this, the partners created a joint venture Station. Read more here.

JV creation together with OKS Group

Dentsu Group Inc. announced the launch of a subsidiary in Russia: Dentsu Entertainment Eurasia Partners (hereinafter - DEEP) in order to expand the ecosystem of the Japanese holding in the local market beyond advertising. This became known on July 28, 2020. DEEP was established as a joint venture between Dentsu Group Inc. and OKS Group. Read more here.

2016

• Total gross profit of Dentsu Group in FY2016 was 11.3% (permanent currency)

• • Group gross profit growth in Japan was 4.3%
  • Dentsu Aegis Network International Business Gross Profit Growth of 18.1% (Permanent Currency)
  • Organic group profit growth was 5.1% for the FY2016, including 3.9% for the fourth quarter of FY2016:
  • Organic profit growth in Japan was 4.5% in FY2016, including 1.0% in the fourth quarter of FY2016, driven by improvements in the unconsolidated gross profit rate of Dentsu Inc. and strong performance of subsidiaries in Japan

• Organic earnings growth at Dentsu Aegis Network was 5.7% in FY2016, including 5.8% in the fourth quarter of FY2016. At the same time, digital income exceeded traditional income for the first time
• Contribution to gross profit from digital business reached 37.3%, including 19.7% in Japan and 52.3% in Dentsu Aegis Network
• The group's base operating margin was 21.1%, similar to the previous fiscal year
• 45 deals concluded in FY2016 helped achieve the group's strategic goals
• Earnings from core activities per share were ¥396.20, up 0.1% from last year's figure
• Dividends per share in FY2016 were RMB85 (RMB75 per FY2015)
• Dentsu Group expects to continue leading momentum in 2017, increasing its presence in the digital market

In the region EMEA , Dentsu Aegis Network's organic profit growth was 6.9% in FY2016, including 7.5% in the fourth quarter of 2016. This is a good indicator, given the impact of the European referendum on business in the region. Continental countries showed very high results. In Europe particular, double-digit growth was demonstrated by and. Spain Italy High single-digit growth showed and. Germany France also Russia managed to demonstrate exceptionally high double digits in the FY2016.

According to 2016 data, the Dentsu group provides a full range of client services in the areas of branding, integrated communications, media and digital through nine global network brands - Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum, as well as through specialists and brands represented in various markets.

2015

• Organic earnings growth for Dentsu Group was 7.0%

• • Organic group profit growth in Japan was 3.9%
  • Organic profit growth for Dentsu Aegis Network's international business was 9.4%, including 8.2% in the fourth quarter FY2015
  • The rate of gross profit from international (non-Japanese) business reached 54.3% (50.7% in F. G. FY2014)
  • The contribution of digital business to profit is 34% (30% in FY2014
    )

• Group core operating margin was 21.1% (19.7% in FY2014)
• Record number of acquisitions during the FY2015 period; about half of them are in the field of digital
• Earnings from core activities per share were ¥395.67, up 27.9% from last year's figure
• Dividends per share in FY2015 were 75 yen, 55 yen higher than last year's figure

2013: Dentsu Incorporated's operations are 70% concentrated in Japan

Dentsu Incorporated - Japanese advertising and communication holding (Tokyo: 4324; ISIN: JP3551520004). It differs from other monsters of the world advertising world in that its operations are 70% concentrated in Japan. This does not prevent Dentsu from entering the list of the largest media agencies at the world level: the Japanese advertising market is the second largest in the world (behind only the American one).

Dentsu also stands out from the rest by the fact that the services that the company provides are not "distributed" to different agencies, but are concentrated in one. Most international advertising holdings have a whole "clip" of agencies under different names providing various services - from BTL, traditional advertising on TV or in the press to "digital" marketing.

2012: Dentsu buys Britain's Aegis Group

In July 2012, Aegis Group was purchased by Dentsu Inc. for $4.9^[2].

2009

The Japanese holding was the first advertising giant to feel an economic crisis, but compared to other holdings, the drop in revenue in the second quarter of 2009 was not as impressive as that of competitors - the group's turnover decreased by 8.3%, and profit by 8.9%.

Notes