Medium-Term Business Plan
Fiscal Year 2019 to Fiscal Year 2023
Please refer the Announcement presentation materials for details.
Changes in the Business Environment Surrounding the Group
Arrival of an Era of Extreme Innovation through the Shift to Complete Digitalization
Digitalization of information
→Digitalization of entire lifestyles
- Ability to connect with anyone, anywhere, and at any time through diverse digital touchpoints
- Arrival of a sei-katsu-sha-oriented society in which sei-katsu-sha lead various trends in the world at large
Transformation of industrial structure due to technological advances
→Advent of an era of innovation
- Blurring of boundaries between markets and transformation of industrial structure due to technological advances
- Advent of an era where dynamic innovation is needed in all industries, nations, and companies
Acceleration of borderless corporate activities
- Continuation of the “global shift” in which corporations aim to expand their business overseas
- Acceleration of borderless corporate activities with the further shift toward complete digitalization
With Sei-katsu-sha insight as our cornerstone, the source of our competitiveness is our ability to collaborate with all kinds of partners by marrying Sei-katsu-sha data and technology infrastructure with creativity that can shape the future and integrative capabilities that bring together and move varied personalities and functions.
Core Medium-Term Strategy
With sei-katsu-sha insight as our cornerstone, the Hakuhodo DY Group will combine its creativity, integrative capabilities, and data and technology utilization skills to play a leading role in evolving companiesʼ marketing activities and generating innovation in a completely digitalized era. In this way, we will continue to impact and provide value to sei-katsu-sha and society as a whole.
Strengthening Three Fundamentals for Growth
By strengthening the Three Fundamentals for Growth listed below and actively carrying out investment, we aim to realize swift and dynamic business growth.
Step up investment in data, technologies, infrastructure, human resources, M&A, and a wide range of other areas
Fundamentals for Growth 1
Establish a leading position in the broader digital domain
Ⅰ. Enhance the sophistication of Sei-katsu-sha Data-Driven Marketing
In anticipation of complete digitalization, we will revamp our technologies, data, systems, and solutions and work to enhance our Sei-katsu-sha Data-Driven Marketing by crossing these with our creativity.
Ⅱ. Respond to diversifying digital touchpoints
We will widely roll out response structures for digital touchpoints that are becoming more diversiﬁed as a result of such factors as the digitalization of existing media and the emergence of digital touchpoints in physical spaces.
Ⅲ. Expand our structure in the rapidly growing domain of Internet media
To establish structures for providing optimal services that meet diverse client needs, not only will we strengthen the functions of our integrated advertising companies, we will also enhance our next-generation digital agencyʼs functions, focusing on the provision of sophisticated digital solutions.
In addition, we will transition our integrated media companies, which support the twin pillars of our frontline opera-tions, to the next generation to better suit a completely digitalized era.
Fundamentals for Growth 2
Strengthen response capabilities for borderless corporate activities
We will bolster our ability to respond to increasingly borderless corporate activities by strengthening our international operations centering on the following three areas.
Fundamentals for Growth 3
Accelerate innovation through external collaborations
We will build a structure for collaboration with not only our business partners, but also external corporations, such as innovative technology companies, so as to accelerate innovation of the services we provide and of our Group.
Other Major Issues to Address
We recognize the following as issues on which we need to focus continuously, not only during the period of the new Medium-Term Business Plan.
Efforts toward the Sustainable Development Goals (SDGs)
- We will contribute to corporations, Sei-katsu-sha, and society as a whole through our efforts to realize the Core Medium-Term Strategy
- Leveraging the creativity and ability to transmit information of each Group employee, we will contribute to improving awareness of social issues among Sei-katsu-sha and make concerted efforts together with our business partners to find solutions and enrich people’s lives
- By creating environments where employees can work with high levels of enthusiasm we will facilitate health management, and we will further ensure that these efforts lead to improved operational efficiency
- We will establish specialized organizations within each operating company to help accelerate various initiatives, with a view to using systems and technologies to also spur innovation within operational processes
New Medium-Term Business Plan Targets
Outline of Growth
We expect high levels of revenue growth on a continuous basis over the next five years. However, as we expect to carry out upfront investments in order to strengthen infrastructure and structure, operating income before amortization of goodwill (after adjustment) is expected to increase more significantly during the latter half of the Medium-Term Business Plan, accordingly.
Based on the strategy previously mentioned, the outline for growth in our Internet media business and international business is as follows.