Dentsu : Q2 / 2023 Quarterly Financial Statements (January to June 2023)（485KB）

Excerpt from Quarterly Report

(Consolidated Financial Statements)

(January 1 to June 30, 2023)

Part 4. Financial Section

1. Preparation Method of Condensed Quarterly Consolidated Financial Statements

1. The condensed quarterly consolidated financial statements of Dentsu Group Inc. (hereinafter referred to as "the Company") are prepared in accordance with International Accounting Standards 34 "Interim Financial Reporting" (hereinafter referred to as "IAS 34") under the provisions of Article 93 of the "Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements" (Cabinet Office Ordinance No. 64, 2007; hereinafter referred to as "the Ordinance").
2. In the condensed quarterly consolidated financial statements, figures less than one million yen are rounded down to the nearest million yen.

2. Audit Certificate

Pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Company's condensed quarterly consolidated financial statements for the second quarter ended June 30, 2023 (from April 1 to June 30, 2023) and the condensed consolidated financial statements for the first six months (from January 1 to June 30, 2023) of fiscal year 2023, which were compiled in Japanese, were subject to a quarterly review by KPMG AZSA LLC.

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1. Condensed Quarterly Consolidated Financial Statements

(1)Condensed Quarterly Consolidated Statement of Financial Position

			(Millions of Yen)
	FY2022		The second quarter
Notes		(As of June 30, 2023)
	(As of December 31, 2022)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

Trade and other receivables

Inventories

Income tax receivables

Other financial assets

Other current assets

Subtotal

Non-current assets classified as held for sale

Total current assets

NON-CURRENT ASSETS:

	603,740	430,686
	1,531,957	1,376,225
	3,670	6,989
	46,964	41,899
12	18,731	27,341
	55,226	69,567
	2,260,291	1,952,711
7	57,205	55,277
	2,317,496		2,007,988

Property, plant and equipment	2	26,577	28,777
Goodwill	6,8	749,755	883,014
Intangible assets	2,6	211,247	269,337
Right-of-use assets	2	143,379	150,005
Investments accounted for using the		47,515	49,266
equity method
Other financial assets	12	168,386	163,445
Other non-current assets		20,241	8,941
Deferred tax assets		56,827	51,000
Total non-current assets
	1,423,931	1,603,788

TOTAL ASSETS	5	3,741,427	3,611,777

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				(Millions of Yen)
	Notes	FY2022		The second quarter
	(As of December 31, 2022)		(As of June 30, 2023)
LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES:
Trade and other payables		1,532,591	1,423,311
Bonds and borrowings	12	95,790	231,936
Other financial liabilities	12, 13	92,237	104,823
Income tax payables		30,894	24,110
Provisions		12,700	18,216
Other current liabilities		215,740	200,268
Subtotal		1,979,955	2,002,666
Liabilities directly associated with
non-current assets classified as	7	37,740	43,177
held for sale
Total current liabilities		2,017,696	2,045,844
NON-CURRENT
LIABILITIES:
Bonds and borrowings	12	436,639	235,515
Other financial liabilities	12	222,811	244,786
Liability for retirement benefits		23,991	23,417
Provisions		21,887	17,650
Other non-current liabilities		7,333	5,695
Deferred tax liabilities		55,740	41,225
Total non-current
	768,403	568,289
liabilities
Total liabilities
	2,786,099	2,614,134
EQUITY:
Share capital		74,609	74,609
Share premium account		74,931	74,992
Treasury shares	9	(25,478)	(24,963)
Other components of equity	7	135,786	182,471
Retained earnings		620,418	612,776
Total equity attributable to
	880,267	919,886
owners of the parent
Non-controlling interests		75,060	77,756
Total equity
	955,327	997,643
TOTAL LIABILITIES AND
	3,741,427	3,611,777
EQUITY

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(2)Condensed Quarterly Consolidated Statement of Income

For the six months ended June 30, 2022 and June 30, 2023

				(Millions of Yen)
		Six months ended		Six months ended
	Notes	June 30, 2022		June 30, 2023
	(From January 1		(From January 1
		to June 30, 2022)		to June 30, 2023)
Revenue	2,5	576,853	603,329
Cost of sales		(57,086)	(71,406)
Net revenue	5	519,766	531,923
Selling, general and administrative		(446,243)	(489,356)
expenses
Business transformation cost		(9,316)	(5,722)
Gain on sale and retirement of non-		17,045	300
current assets
Impairment loss	7,8	(15,707)	(15,706)
Other income	2	2,115	628
Other expenses	2	(869)	(606)
Operating profit		66,790	21,459
Share of results of associates		1,540	3,440
Impairment loss of associates		(690)		-
Loss on sales of shares of associates		-	(186)
Revaluation gain on step acquisition		5,467		-
Profit before interest and tax		73,108	24,713
Finance income	10	15,545	16,952
Finance costs	10	(18,076)	(17,781)
Profit before tax		70,577	23,884
Income tax expense		(24,244)	(5,007)
Profit for the period		46,333	18,877
Profit attributable to:
Owners of the parent		42,483	15,321
Non-controlling interests		3,850	3,555
Earnings per share
Basic earnings per share (Yen)	11	156.59	57.95
Diluted earnings per share (Yen)	11	155.37	57.71

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Reconciliation from operating profit to underlying operating profit

				(Millions of Yen)
		Six months ended		Six months ended
	Notes	June 30, 2022		June 30, 2023
	(From January 1		(From January 1
		to June 30, 2022)		to June 30, 2023)
Operating profit		66,790	21,459
Amortization of intangible assets		13,945	14,197
incurred in acquisitions
Selling, general and administrative		2,905	3,431
expenses
Business transformation cost		9,316	5,722
Gain on sale and retirement of non-		(17,045)	(300)
current assets
Impairment loss	7,8	15,707	15,706
Other income		(763)	(12)
Other expenses		432	502
Underlying operating profit (Note)	5	91,289	60,708

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