Annual Report For the Year Ended March 31, 2008 dentsu
Market Data (Calendar years)
Size of Major Advertising Markets
(Millions of U.S. dollars) 500,000
482,659.1 450,957.5
■ United States
■ Rest of Europe
420,286.8 396,075.3
400,000
■ Japan
■ Rest of Asia-Pacific
■ Germany
■ Latin America
■ United Kingdom
■ Others
361,433.3
300,000
200,000
■ France 100,000
0 2003
2004
2005
2006
2007
Millions of U.S. dollars at current prices Calendar years
United States Japan Germany United Kingdom France Rest of Europe Rest of Asia-Pacific Latin America Others Total
2003 $152,282.2 42.1% 35,662.0 9.9 21,868.3 6.1 20,890.3 5.8 12,112.9 3.4 59,826.1 16.6 39,979.6 11.1 12,770.1 3.5 6,041.8 1.7 $361,433.3 100.0%
2004 $161,487.1 40.8% 37,048.8 9.4 22,151.7 5.6 22,829.1 5.8 12,742.4 3.2 66,127.6 16.7 44,384.1 11.2 14,358.8 3.6 14,945.7 3.8 $396,075.3 100.0%
2005 $166,234.9 39.6% 40,300.6 9.6 23,179.6 5.5 23,536.4 5.6 13,128.4 3.1 69,762.2 16.6 48,538.6 11.5 18,553.5 4.4 17,052.6 4.1 $420,286.8 100.0%
2006 $174,837.9 38.8% 40,746.5 9.0 24,683.8 5.5 23,916.8 5.3 13,621.7 3.0 77,438.6 17.2 53,972.2 12.0 21,321.5 4.7 20,418.5 4.5 $450,957.5 100.0%
2007 $179,250.8 37.1% 41,016.6 8.5 25,758.3 5.3 25,429.4 5.3 13,890.2 2.9 86,742.9 18.0 61,790.7 12.8 24,927.8 5.2 23,852.4 4.9 $482,659.1 100.0%
Note: These totals are for major mass media, including television, newspapers, magazines, radio, cinema, outdoor and Internet advertising. Source: Zenith Optimedia, Advertising Expenditure Forecasts, June 2008
78
Advertising Expenditures in Japan and Advertising Expenditures in Japan as a Percentage of Nominal GDP Advertising expenditures in Japan Advertising expenditures in Japan as a percentage of nominal GDP
(Billions of yen)
(%)
8,000
1.6
6,000
1.2
4,000
0.8
2,000
0.4
0
0 2003
2004
2005
2006
2007
Billions of yen Calendar years
Advertising expenditures in Japan Nominal GDP Advertising expenditures in Japan as a percentage of nominal GDP
2003
2004
2005
Previous Category
2006
2007
New Category
¥ 5,684.1 490,294.0
¥ 5,857.1 498,328.4
¥ 6,823.5 501,734.4
¥ 6,939.9 508,925.1
¥ 7,019.1 515,716.2
1.16%
1.18%
1.36%
1.36%
1.36%
Notes: (1) The method for estimating advertising expenditures in Japan was modified in 2007, and data from 2005 onward has been retroactively revised. (2) Advertising expenditures include expenditures on television, newspapers, magazines and radio advertising, expenditures on marketing flyers inserted in newspapers, exhibitions and screen displays, direct mailings, outdoor advertisements, transit advertisements, advertisements in telephone directories, point-of-purchase (POP) advertisements, satellite media-related and Internet advertisements. Source: Dentsu, 2007 Advertising Expenditures in Japan
79
Advertising Expenditures in Japan by Medium Billions of yen 2003
Calendar years Television Newspapers Magazines (1) Radio Satellite Media-Related (1) Internet Promotional Media (1) Total (1)
2004
2005
Previous Category
¥1,948.0 34.3% 1,050.0 18.5 403.5 7.1 180.7 3.2 41.9 0.7 118.3 2.1 1,941.7 34.1 ¥5,684.1 100.0%
2006
2007
New Category
¥2,043.6 34.9% 1,055.9 18.0 397.0 6.8 179.5 3.1 43.6 0.7 181.4 3.1 1,956.1 33.4 ¥5,857.1 100.0%
¥2,041.1 29.9% 1,037.7 15.2 484.2 7.1 177.8 2.6 48.7 0.7 377.7 5.6 2,656.3 38.9 ¥6,823.5 100.0%
¥2,016.1 29.0% 998.6 14.4 477.7 6.9 174.4 2.6 54.4 0.8 482.6 6.9 2,736.1 39.4 ¥6,939.9 100.0%
¥1,998.1 28.5% 946.2 13.5 458.5 6.5 167.1 2.4 60.3 0.8 600.3 8.6 2,788.6 39.7 ¥7,019.1 100.0%
Note: (1) The method for estimating advertising expenditures in Japan was modified in 2007, and data from 2005 onward has been retroactively revised. Sources: Dentsu, 2007 Advertising Expenditures in Japan
Advertising Expenditures in the Four Major Media in Japan by Industry Billions of yen Calendar years Energy/Metals/Machinery Foodstuffs Beverages/Cigarettes Pharmaceuticals/Medical Supplies Cosmetics/Toiletries Apparel/Fashion Accessories/Personal Items Precision Instruments/Office Supplies Home Electric Appliances/AV Equipment Automobiles/Related Products Household Products Hobbies/Sporting Goods Real Estate/Housing Facilities Publications Information/Communications Distribution/Retailing Finance/Insurance Transportation/Leisure Food Services/Other Services Government/Organizations Education/Medical Services/Religion Classified Ads/Others Total
2003 46.1 1.3% 318.7 8.9 265.6 7.4 181.2 5.1 357.5 10.0 96.0 2.7 47.4 1.3 75.9 2.1 248.8 6.9 63.0 1.8 150.7 4.2 148.2 4.1 150.8 4.2 274.6 7.7 247.3 6.9 255.7 7.1 268.4 7.5 122.1 3.4 52.3 1.5 127.7 3.6 83.4 2.3 ¥3,582.2 100.0% ¥
2004 47.2 1.3% 301.7 8.2 287.6 7.8 176.9 4.8 379.1 10.3 96.5 2.6 47.4 1.3 82.4 2.3 254.9 6.9 66.9 1.8 142.3 3.9 155.9 4.2 151.3 4.1 266.4 7.3 254.8 6.9 291.2 7.9 284.5 7.7 124.0 3.4 46.8 1.3 130.9 3.6 86.3 2.4 ¥3,676.0 100.0% ¥
2005 49.9 1.3% 302.4 8.1 282.2 7.6 184.7 4.9 376.5 10.1 110.6 3.0 40.9 1.1 90.5 2.4 247.9 6.6 68.1 1.8 145.9 3.9 161.2 4.3 148.2 4.0 270.4 7.2 254.1 6.8 312.9 8.4 288.2 7.7 130.5 3.5 52.1 1.4 135.9 3.6 86.7 2.3 ¥3,740.8 100.0%
¥
2006 56.3 1.5% 298.9 8.1 276.5 7.5 177.9 4.8 369.8 10.1 123.1 3.4 42.3 1.2 91.9 2.5 235.0 6.4 62.4 1.7 147.8 4.0 162.1 4.4 143.1 3.9 269.7 7.4 234.8 6.4 292.1 8.0 288.0 7.9 132.2 3.6 43.6 1.2 127.9 3.5 90.5 2.5 ¥3,666.8 100.0%
¥
2007 65.0 1.8% 299.3 8.4 263.7 7.4 182.8 5.1 361.4 10.1 127.8 3.6 44.6 1.2 85.0 2.4 216.9 6.1 63.1 1.8 139.4 3.9 167.8 4.7 137.1 3.8 267.0 7.5 223.4 6.3 236.0 6.6 289.7 8.1 135.0 3.8 54.1 1.5 118.4 3.3 91.5 2.6 ¥3,569.9 100.0%
¥
Notes: (1) The method for estimating advertising expenditures in Japan was modified in 2007, and data from 2005 onward has been retroactively revised. (2) Expenditures include expenditures on terrestrial television, newspapers, magazines and radio advertising, including related creative production costs. Source: Dentsu, 2007 Advertising Expenditures in Japan
80
Net Sales
Net Sales of Top 10 Advertising Companies in Japan
(Millions of yen) 3,500,000
(Non-Consolidated) 3,000,000
■ Dentsu
■ East Japan Marketing & Communications
■ Hakuhodo
■ Yomiko Advertising
2,500,000
2,000,000
■ Asatsu-DK
■ Delphys 1,500,000
■ Daiko Advertising
■ Asahi Advertising 1,000,000
■ Tokyu Agency
■ Nikkeisha 500,000
0 2003
Net Sales Calendar years
Dentsu Hakuhodo Asatsu-DK Daiko Advertising Tokyu Agency East Japan Marketing & Communications Yomiko Advertising Delphys Asahi Advertising Nikkeisha Reference: Advertising Expenditures in Japan (Billions of yen)
2004
2005
2006
2007
Millions of yen 2003 ¥1,379,142 653,995 357,598 152,608 163,593
2004 ¥1,505,234 674,631 373,897 144,466 137,781
83,973 111,294 52,866 60,251 46,513 −
89,066 107,331 67,640 57,756 48,779 −
2005 ¥1,559,149 705,250 384,849 145,901 124,656
22.8% 10.3 5.6 2.1 1.8
96,203 1.4 102,119 1.5 78,541 1.2 57,000 0.8 49,041 0.7 ¥ 6,823.5 100.0%
2006 ¥1,606,759 714,391 378,804 136,092 123,175
23.2% 10.3 5.5 2.0 1.8
101,993 1.5 90,522 1.3 61,447 0.9 57,011 0.8 48,361 0.7 ¥ 6,939.9 100.0%
2007 ¥1,588,769 716,975 387,860 137,947 121,971
22.6% 10.2 5.5 2.0 1.7
109,794 1.6 98,025 1.4 60,768 0.9 57,984 0.8 45,392 0.6 ¥ 7,019.1 100.0%
Notes: (1) Rankings in each category are limited to the top 10 advertising companies in terms of net sales and are based on 2006 data. (2) The scope of data used to calculate the net sales of the top 10 advertising companies and that used in Advertising Expenditures in Japan, included here for reference, differ. Percentages are calculated using data from Advertising Expenditures in Japan. (3) I&S BBDO, McCann-Erickson, Ogilvy & Mather Japan, JWT Japan, Grey Worldwide, Draftfcb (Former: FCB Worldwide) did not disclose these figures publicly in 2007. Sources: Advertising and Economy Research Institute, Current Situation of Japanese Advertising Agencies 2006, Advertising and Economy published on April 1, 2008 and Dentsu, Advertising Expenditures in Japan 2007.
81
Four Mass Media
Net Sales of the Top 10 Advertising Companies in Japan in the Four Mass Media
(Millions of yen) 2,500,000
(Non-Consolidated) 2,000,000
■ Dentsu
■ East Japan Marketing & Communications
■ Hakuhodo
■ Yomiko Advertising
■ Asatsu-DK
■ Delphys
■ Daiko Advertising
■ Asahi Advertising
1,500,000
1,000,000
500,000
■ Tokyu Agency
■ Nikkeisha 0 2003
Four Mass Media Calendar year
Dentsu Hakuhodo Asatsu-DK Daiko Advertising Tokyu Agency East Japan Marketing & Communications Yomiko Advertising Delphys Asahi Advertising Nikkeisha Reference: Advertising Expenditures in Japan (Billions of yen)
2004
2005
2006
2007
Millions of yen 2003 ¥971,655 438,913 241,276 100,437 68,182
2004 ¥1,045,664 449,971 240,311 91,416 58,966
9,538 64,465 28,714 41,097 29,489 −
11,594 59,990 36,540 39,554 30,565 −
2005 ¥1,033,490 449,362 240,753 94,595 52,405
27.6% 12.0 6.4 2.5 1.4
12,649 0.3 55,844 1.5 35,515 0.9 38,657 1.0 29,907 0.8 ¥ 3,740.8 100.0%
2006 ¥1,051,129 457,287 241,300 90,149 48,585
28.7% 12.5 6.6 2.5 1.3
12,291 0.3 49,652 1.4 26,920 0.7 37,607 1.0 29,032 0.8 ¥ 3,666.8 100.0%
2007 ¥1,011,403 451,684 244,976 90,376 47,933
28.3% 12.7 6.9 2.5 1.3
15,442 0.4 50,293 1.4 25,153 0.7 36,806 1.0 25,970 0.7 ¥ 3,569.9 100.0%
Notes: (1) Rankings in each category are limited to the top 10 advertising companies in terms of net sales and are based on 2007 data. (2) The scope of data used to calculate the net sales of the top 10 advertising companies and that used in Advertising Expenditures in Japan, included here for reference, differ. Percentages are calculated using data from Advertising Expenditures in Japan. (3) I&S BBDO, McCann-Erickson, Ogilvy & Mather Japan, JWT Japan, Grey Worldwide, Draftfcb (Former: FCB Worldwide) did not disclose these figures publicly in 2007. Sources: Advertising and Economy Research Institute, Current Situation of Japanese Advertising Agencies 2006, Advertising and Economy published on April 1, 2007 and Dentsu, Advertising Expenditures in Japan 2007.
82
Subsidiaries and Affiliates (As of March 31, 2008)
Dentsu conducts its business together with its subsidiaries and affiliates. As of March 31, 2008, the Dentsu Group included 129 consolidated subsidiaries and 31 affiliated companies accounted for under the equity method.
Equity Held by Dentsu
Equity Held by Dentsu
Name
Geographic Area
(Equity Held Indirectly)(%)
Name
Dentsu Holdings Europe Ltd.
Consolidated Subsidiaries
Geographic Area
(Equity Held Indirectly)(%)
United Kingdom
100.0
China
70.0
Dentsu East Japan Inc.
Japan
100.0
Beijing Dentsu Advertising Co., Ltd.
Dentsu West Japan Inc.
Japan
100.0
Dentsu (Thailand) Ltd.
Thailand
Dentsu Kyushu Inc.
Japan
100.0
100.0 (98.4)
Dentsu Hokkaido Inc.
Japan
100.0
Dentsu Media (Thailand) Ltd.(7)
Thailand
100.0 (51.0)
Japan
50.0
Taiwan
100.0 (30.0)
Republic of Korea
85.0
Dentsu Meitetsu Communications. Inc. (1),(3) Dentsu Young & Rubicam Inc.
Japan
51.0
Cyber Communications Inc.(1)
Japan
47.5
Dentsu Tec Inc.
Japan
100.0
Dentsu Public Relations Inc.
Japan
100.0
Dentsu Casting and Entertainment Inc.
Japan
100.0
Dentsu Operations Development (4)
Japan
100.0 (56.0)
Dentsu Table Media Communications Inc.(4)
Japan
Dentsu (Taiwan) Inc.
Dentsu Innovak Inc. and 104 other companies
Affiliated Companies Accounted for under the Equity Method Ad Gear Ltd.
Japan
34.0
95.0 (95.0)
Frontage Inc.
Japan
40.0
Beacon Communications K.K.
Japan
34.0
Video Research Ltd.
Japan
34.2
Information Services International-Dentsu, Ltd.
Japan
61.9
Geneon Entertainment Inc.
Japan
100.0
OPT, Inc.
Japan
35.3
Brainyworks, Ltd.
Japan
100.0 (100.0)
D2 Communications Inc.
Japan
46.0
Dentsu Facility Management Inc.
Japan
100.0
Publicis Groupe S.A.(2)
France
15.0
Dentsu Holdings USA, Inc.
U.S.A.
100.0
DCTP Entwicklungsgesellschaft für TV-Programm mbH
Germany
37.5
Dentsu America, Inc.(5)
U.S.A.
100.0 (100.0)
Phoenix Communications Inc.
Republic of Korea
29.5
Dentsu Next, Inc.(6)
U.S.A.
100.0 (100.0)
PDS Media, Inc.
Republic of Korea
33.3
and 21 other companies
Notes: (1) Although Dentsu’s ownership is 50% or less, the company is considered a subsidiary because Dentsu exerts effective control. (2) Although Dentsu’s ownership is less than 20%, the company is considered an affiliate because Dentsu has an effective impact on its operations. (3) Meitetsu Agency was merged into Ad Dentsu (Nagoya) on April 1, 2007. The name of the resulting agency was changed to Dentsu Meitetsu Communications. (4) Dentsu Table Media Communications changed its name to Dentsu Operations Development on December 1, 2006. Dentsu Table Media Communications was established through a corporate separation that occurred on the same day. (5) The company name of DCA Advertising, Inc., changed to Dentsu America, Inc., on May 24, 2006. (6) The company name of Colby & Partners, Inc, changed to Dentsu Next, Inc., on July 1, 2007. (7) Dentsu Media Palette (Thailand) changed its name to Dentsu Media (Thailand) on May 1, 2007.
83
Board of Directors, Corporate Auditors and Executive Officers Dentsu Inc. (As of June 28, 2008)
Chairman & CEO
Corporate Auditors
Tateo Mataki
Yasuchika Negoro Atsuko Toyama
President & COO
Osamu Abe
Tatsuyoshi Takashima Senior Executive Officers Executive Vice President
Tatsuya Tanaka
Hiromori Hayashi
Kazuyoshi Nobuhara Shinzo Okamoto
Senior Managing Directors
Tetsuo Machida
Kimiharu Matsuda
Fumio Higuchi
Haruyuki Takahashi
Tomoharu Tsuruda
Ryuichi Mori
Shoichi Kishida
Itsuma Wakasugi
Haruo Kurami
Kunihiko Tainaka
Hiroshi Nishimura
Managing Directors
Executive Officers
Setsuo Kamai
Mitsuro Shibata
Tadashi Ishii
Shozo Nishikawa
Yasushi Matsushita
Shoichi Nakamoto
Takehiko Joju
Naotoshi Ogisu
Masuo Tachibana
Takeshi Mori
Kotaro Sugiyama
Kazuo Arai Akira Kagami
Executive Directors
Hiroshi Nakahara
Seizo Wakabayashi
Akira Sugimoto
Satoshi Ishikawa
Soichi Akiyama Tomoki Utsumi
Senior Corporate Auditors
Takehiko Miura
Michio Niiyama
Hirokazu Kizawa
Toichi Ogitani
Kazumichi Iwagami Kunihiro Matsushima Timothy Andree
84
85
Information for Shareholders Dentsu Inc. (As of March 31, 2008)
Corporate Headquarters 1-8-1, Higashi-Shimbashi, Minato-ku, Tokyo 105-7001, Japan Phone: +81-3-6216-5111
Breakdown of Shareholders by Type
Corporate Communications Division, Investor Relations Office 1-8-1, Higashi-Shimbashi, Minato-ku, Tokyo 105-7001, Japan Phone: +81-3-6216-5111 E-mail: [email protected]
Japanese financial institutions Japanese securities firms Other Japanese corporations Treasury stock Japanese individuals and others Foreign institutions and individuals Total
Stock Exchange Listing Tokyo Stock Exchange, First Section
Major Shareholders
Total Number of Shares Issued 2,781,840
General Meeting of Shareholders The ordinary general meeting of shareholders is held in Tokyo in June each year.
Transfer Agent The Mitsubishi Trust and Banking Corporation 1-4-5, Marunouchi, Chiyoda-ku, Tokyo 100-8212, Japan
Number of Shareholders
Number of Shares Held
Percentage of Total Number of Shares Issued
148
680,996.20
24.48
44
78,885.49
2.84
649
940,664.16
33.81
1
36,020.19
1.29
40,768
634,315.92
22.80
367
410,958.04
14.77
41,977
2,781,840.00
100.00
Number of Shares Held
Percentage of Total Number of Shares Issued
Jiji Press, Ltd. Kyodo News The Master Trust Bank of Japan, Ltd. (Trust accounts) Mizuho Corporate Bank, Ltd. Japan Trustee Services Bank, Ltd. (Trust accounts) Group Employees’ Stockholding Association Yoshida Hideo Memorial Foundation RECRUIT CO., LTD. Deuche Securities Ltd. Tokyo Broadcasting System, Inc.
302,186.80
10.86
204,888.00
7.36
141,568.00
5.08
113,288.80
4.07
100,387.00
3.60
73,810.78
2.65
49,848.08
1.79
49,299.00
1.77
42,873.00
1.54
40,000.00
1.43
Internet Address http://www.dentsu.com
86
87
88
Size of Major Advertising Markets
(Millions of U.S. dollars) 500,000
482,659.1 450,957.5
■ United States
■ Rest of Europe
420,286.8 396,075.3
400,000
■ Japan
■ Rest of Asia-Pacific
■ Germany
■ Latin America
■ United Kingdom
■ Others
361,433.3
300,000
200,000
■ France 100,000
0 2003
2004
2005
2006
2007
Millions of U.S. dollars at current prices Calendar years
United States Japan Germany United Kingdom France Rest of Europe Rest of Asia-Pacific Latin America Others Total
2003 $152,282.2 42.1% 35,662.0 9.9 21,868.3 6.1 20,890.3 5.8 12,112.9 3.4 59,826.1 16.6 39,979.6 11.1 12,770.1 3.5 6,041.8 1.7 $361,433.3 100.0%
2004 $161,487.1 40.8% 37,048.8 9.4 22,151.7 5.6 22,829.1 5.8 12,742.4 3.2 66,127.6 16.7 44,384.1 11.2 14,358.8 3.6 14,945.7 3.8 $396,075.3 100.0%
2005 $166,234.9 39.6% 40,300.6 9.6 23,179.6 5.5 23,536.4 5.6 13,128.4 3.1 69,762.2 16.6 48,538.6 11.5 18,553.5 4.4 17,052.6 4.1 $420,286.8 100.0%
2006 $174,837.9 38.8% 40,746.5 9.0 24,683.8 5.5 23,916.8 5.3 13,621.7 3.0 77,438.6 17.2 53,972.2 12.0 21,321.5 4.7 20,418.5 4.5 $450,957.5 100.0%
2007 $179,250.8 37.1% 41,016.6 8.5 25,758.3 5.3 25,429.4 5.3 13,890.2 2.9 86,742.9 18.0 61,790.7 12.8 24,927.8 5.2 23,852.4 4.9 $482,659.1 100.0%
Note: These totals are for major mass media, including television, newspapers, magazines, radio, cinema, outdoor and Internet advertising. Source: Zenith Optimedia, Advertising Expenditure Forecasts, June 2008
78
Advertising Expenditures in Japan and Advertising Expenditures in Japan as a Percentage of Nominal GDP Advertising expenditures in Japan Advertising expenditures in Japan as a percentage of nominal GDP
(Billions of yen)
(%)
8,000
1.6
6,000
1.2
4,000
0.8
2,000
0.4
0
0 2003
2004
2005
2006
2007
Billions of yen Calendar years
Advertising expenditures in Japan Nominal GDP Advertising expenditures in Japan as a percentage of nominal GDP
2003
2004
2005
Previous Category
2006
2007
New Category
¥ 5,684.1 490,294.0
¥ 5,857.1 498,328.4
¥ 6,823.5 501,734.4
¥ 6,939.9 508,925.1
¥ 7,019.1 515,716.2
1.16%
1.18%
1.36%
1.36%
1.36%
Notes: (1) The method for estimating advertising expenditures in Japan was modified in 2007, and data from 2005 onward has been retroactively revised. (2) Advertising expenditures include expenditures on television, newspapers, magazines and radio advertising, expenditures on marketing flyers inserted in newspapers, exhibitions and screen displays, direct mailings, outdoor advertisements, transit advertisements, advertisements in telephone directories, point-of-purchase (POP) advertisements, satellite media-related and Internet advertisements. Source: Dentsu, 2007 Advertising Expenditures in Japan
79
Advertising Expenditures in Japan by Medium Billions of yen 2003
Calendar years Television Newspapers Magazines (1) Radio Satellite Media-Related (1) Internet Promotional Media (1) Total (1)
2004
2005
Previous Category
¥1,948.0 34.3% 1,050.0 18.5 403.5 7.1 180.7 3.2 41.9 0.7 118.3 2.1 1,941.7 34.1 ¥5,684.1 100.0%
2006
2007
New Category
¥2,043.6 34.9% 1,055.9 18.0 397.0 6.8 179.5 3.1 43.6 0.7 181.4 3.1 1,956.1 33.4 ¥5,857.1 100.0%
¥2,041.1 29.9% 1,037.7 15.2 484.2 7.1 177.8 2.6 48.7 0.7 377.7 5.6 2,656.3 38.9 ¥6,823.5 100.0%
¥2,016.1 29.0% 998.6 14.4 477.7 6.9 174.4 2.6 54.4 0.8 482.6 6.9 2,736.1 39.4 ¥6,939.9 100.0%
¥1,998.1 28.5% 946.2 13.5 458.5 6.5 167.1 2.4 60.3 0.8 600.3 8.6 2,788.6 39.7 ¥7,019.1 100.0%
Note: (1) The method for estimating advertising expenditures in Japan was modified in 2007, and data from 2005 onward has been retroactively revised. Sources: Dentsu, 2007 Advertising Expenditures in Japan
Advertising Expenditures in the Four Major Media in Japan by Industry Billions of yen Calendar years Energy/Metals/Machinery Foodstuffs Beverages/Cigarettes Pharmaceuticals/Medical Supplies Cosmetics/Toiletries Apparel/Fashion Accessories/Personal Items Precision Instruments/Office Supplies Home Electric Appliances/AV Equipment Automobiles/Related Products Household Products Hobbies/Sporting Goods Real Estate/Housing Facilities Publications Information/Communications Distribution/Retailing Finance/Insurance Transportation/Leisure Food Services/Other Services Government/Organizations Education/Medical Services/Religion Classified Ads/Others Total
2003 46.1 1.3% 318.7 8.9 265.6 7.4 181.2 5.1 357.5 10.0 96.0 2.7 47.4 1.3 75.9 2.1 248.8 6.9 63.0 1.8 150.7 4.2 148.2 4.1 150.8 4.2 274.6 7.7 247.3 6.9 255.7 7.1 268.4 7.5 122.1 3.4 52.3 1.5 127.7 3.6 83.4 2.3 ¥3,582.2 100.0% ¥
2004 47.2 1.3% 301.7 8.2 287.6 7.8 176.9 4.8 379.1 10.3 96.5 2.6 47.4 1.3 82.4 2.3 254.9 6.9 66.9 1.8 142.3 3.9 155.9 4.2 151.3 4.1 266.4 7.3 254.8 6.9 291.2 7.9 284.5 7.7 124.0 3.4 46.8 1.3 130.9 3.6 86.3 2.4 ¥3,676.0 100.0% ¥
2005 49.9 1.3% 302.4 8.1 282.2 7.6 184.7 4.9 376.5 10.1 110.6 3.0 40.9 1.1 90.5 2.4 247.9 6.6 68.1 1.8 145.9 3.9 161.2 4.3 148.2 4.0 270.4 7.2 254.1 6.8 312.9 8.4 288.2 7.7 130.5 3.5 52.1 1.4 135.9 3.6 86.7 2.3 ¥3,740.8 100.0%
¥
2006 56.3 1.5% 298.9 8.1 276.5 7.5 177.9 4.8 369.8 10.1 123.1 3.4 42.3 1.2 91.9 2.5 235.0 6.4 62.4 1.7 147.8 4.0 162.1 4.4 143.1 3.9 269.7 7.4 234.8 6.4 292.1 8.0 288.0 7.9 132.2 3.6 43.6 1.2 127.9 3.5 90.5 2.5 ¥3,666.8 100.0%
¥
2007 65.0 1.8% 299.3 8.4 263.7 7.4 182.8 5.1 361.4 10.1 127.8 3.6 44.6 1.2 85.0 2.4 216.9 6.1 63.1 1.8 139.4 3.9 167.8 4.7 137.1 3.8 267.0 7.5 223.4 6.3 236.0 6.6 289.7 8.1 135.0 3.8 54.1 1.5 118.4 3.3 91.5 2.6 ¥3,569.9 100.0%
¥
Notes: (1) The method for estimating advertising expenditures in Japan was modified in 2007, and data from 2005 onward has been retroactively revised. (2) Expenditures include expenditures on terrestrial television, newspapers, magazines and radio advertising, including related creative production costs. Source: Dentsu, 2007 Advertising Expenditures in Japan
80
Net Sales
Net Sales of Top 10 Advertising Companies in Japan
(Millions of yen) 3,500,000
(Non-Consolidated) 3,000,000
■ Dentsu
■ East Japan Marketing & Communications
■ Hakuhodo
■ Yomiko Advertising
2,500,000
2,000,000
■ Asatsu-DK
■ Delphys 1,500,000
■ Daiko Advertising
■ Asahi Advertising 1,000,000
■ Tokyu Agency
■ Nikkeisha 500,000
0 2003
Net Sales Calendar years
Dentsu Hakuhodo Asatsu-DK Daiko Advertising Tokyu Agency East Japan Marketing & Communications Yomiko Advertising Delphys Asahi Advertising Nikkeisha Reference: Advertising Expenditures in Japan (Billions of yen)
2004
2005
2006
2007
Millions of yen 2003 ¥1,379,142 653,995 357,598 152,608 163,593
2004 ¥1,505,234 674,631 373,897 144,466 137,781
83,973 111,294 52,866 60,251 46,513 −
89,066 107,331 67,640 57,756 48,779 −
2005 ¥1,559,149 705,250 384,849 145,901 124,656
22.8% 10.3 5.6 2.1 1.8
96,203 1.4 102,119 1.5 78,541 1.2 57,000 0.8 49,041 0.7 ¥ 6,823.5 100.0%
2006 ¥1,606,759 714,391 378,804 136,092 123,175
23.2% 10.3 5.5 2.0 1.8
101,993 1.5 90,522 1.3 61,447 0.9 57,011 0.8 48,361 0.7 ¥ 6,939.9 100.0%
2007 ¥1,588,769 716,975 387,860 137,947 121,971
22.6% 10.2 5.5 2.0 1.7
109,794 1.6 98,025 1.4 60,768 0.9 57,984 0.8 45,392 0.6 ¥ 7,019.1 100.0%
Notes: (1) Rankings in each category are limited to the top 10 advertising companies in terms of net sales and are based on 2006 data. (2) The scope of data used to calculate the net sales of the top 10 advertising companies and that used in Advertising Expenditures in Japan, included here for reference, differ. Percentages are calculated using data from Advertising Expenditures in Japan. (3) I&S BBDO, McCann-Erickson, Ogilvy & Mather Japan, JWT Japan, Grey Worldwide, Draftfcb (Former: FCB Worldwide) did not disclose these figures publicly in 2007. Sources: Advertising and Economy Research Institute, Current Situation of Japanese Advertising Agencies 2006, Advertising and Economy published on April 1, 2008 and Dentsu, Advertising Expenditures in Japan 2007.
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Four Mass Media
Net Sales of the Top 10 Advertising Companies in Japan in the Four Mass Media
(Millions of yen) 2,500,000
(Non-Consolidated) 2,000,000
■ Dentsu
■ East Japan Marketing & Communications
■ Hakuhodo
■ Yomiko Advertising
■ Asatsu-DK
■ Delphys
■ Daiko Advertising
■ Asahi Advertising
1,500,000
1,000,000
500,000
■ Tokyu Agency
■ Nikkeisha 0 2003
Four Mass Media Calendar year
Dentsu Hakuhodo Asatsu-DK Daiko Advertising Tokyu Agency East Japan Marketing & Communications Yomiko Advertising Delphys Asahi Advertising Nikkeisha Reference: Advertising Expenditures in Japan (Billions of yen)
2004
2005
2006
2007
Millions of yen 2003 ¥971,655 438,913 241,276 100,437 68,182
2004 ¥1,045,664 449,971 240,311 91,416 58,966
9,538 64,465 28,714 41,097 29,489 −
11,594 59,990 36,540 39,554 30,565 −
2005 ¥1,033,490 449,362 240,753 94,595 52,405
27.6% 12.0 6.4 2.5 1.4
12,649 0.3 55,844 1.5 35,515 0.9 38,657 1.0 29,907 0.8 ¥ 3,740.8 100.0%
2006 ¥1,051,129 457,287 241,300 90,149 48,585
28.7% 12.5 6.6 2.5 1.3
12,291 0.3 49,652 1.4 26,920 0.7 37,607 1.0 29,032 0.8 ¥ 3,666.8 100.0%
2007 ¥1,011,403 451,684 244,976 90,376 47,933
28.3% 12.7 6.9 2.5 1.3
15,442 0.4 50,293 1.4 25,153 0.7 36,806 1.0 25,970 0.7 ¥ 3,569.9 100.0%
Notes: (1) Rankings in each category are limited to the top 10 advertising companies in terms of net sales and are based on 2007 data. (2) The scope of data used to calculate the net sales of the top 10 advertising companies and that used in Advertising Expenditures in Japan, included here for reference, differ. Percentages are calculated using data from Advertising Expenditures in Japan. (3) I&S BBDO, McCann-Erickson, Ogilvy & Mather Japan, JWT Japan, Grey Worldwide, Draftfcb (Former: FCB Worldwide) did not disclose these figures publicly in 2007. Sources: Advertising and Economy Research Institute, Current Situation of Japanese Advertising Agencies 2006, Advertising and Economy published on April 1, 2007 and Dentsu, Advertising Expenditures in Japan 2007.
82
Subsidiaries and Affiliates (As of March 31, 2008)
Dentsu conducts its business together with its subsidiaries and affiliates. As of March 31, 2008, the Dentsu Group included 129 consolidated subsidiaries and 31 affiliated companies accounted for under the equity method.
Equity Held by Dentsu
Equity Held by Dentsu
Name
Geographic Area
(Equity Held Indirectly)(%)
Name
Dentsu Holdings Europe Ltd.
Consolidated Subsidiaries
Geographic Area
(Equity Held Indirectly)(%)
United Kingdom
100.0
China
70.0
Dentsu East Japan Inc.
Japan
100.0
Beijing Dentsu Advertising Co., Ltd.
Dentsu West Japan Inc.
Japan
100.0
Dentsu (Thailand) Ltd.
Thailand
Dentsu Kyushu Inc.
Japan
100.0
100.0 (98.4)
Dentsu Hokkaido Inc.
Japan
100.0
Dentsu Media (Thailand) Ltd.(7)
Thailand
100.0 (51.0)
Japan
50.0
Taiwan
100.0 (30.0)
Republic of Korea
85.0
Dentsu Meitetsu Communications. Inc. (1),(3) Dentsu Young & Rubicam Inc.
Japan
51.0
Cyber Communications Inc.(1)
Japan
47.5
Dentsu Tec Inc.
Japan
100.0
Dentsu Public Relations Inc.
Japan
100.0
Dentsu Casting and Entertainment Inc.
Japan
100.0
Dentsu Operations Development (4)
Japan
100.0 (56.0)
Dentsu Table Media Communications Inc.(4)
Japan
Dentsu (Taiwan) Inc.
Dentsu Innovak Inc. and 104 other companies
Affiliated Companies Accounted for under the Equity Method Ad Gear Ltd.
Japan
34.0
95.0 (95.0)
Frontage Inc.
Japan
40.0
Beacon Communications K.K.
Japan
34.0
Video Research Ltd.
Japan
34.2
Information Services International-Dentsu, Ltd.
Japan
61.9
Geneon Entertainment Inc.
Japan
100.0
OPT, Inc.
Japan
35.3
Brainyworks, Ltd.
Japan
100.0 (100.0)
D2 Communications Inc.
Japan
46.0
Dentsu Facility Management Inc.
Japan
100.0
Publicis Groupe S.A.(2)
France
15.0
Dentsu Holdings USA, Inc.
U.S.A.
100.0
DCTP Entwicklungsgesellschaft für TV-Programm mbH
Germany
37.5
Dentsu America, Inc.(5)
U.S.A.
100.0 (100.0)
Phoenix Communications Inc.
Republic of Korea
29.5
Dentsu Next, Inc.(6)
U.S.A.
100.0 (100.0)
PDS Media, Inc.
Republic of Korea
33.3
and 21 other companies
Notes: (1) Although Dentsu’s ownership is 50% or less, the company is considered a subsidiary because Dentsu exerts effective control. (2) Although Dentsu’s ownership is less than 20%, the company is considered an affiliate because Dentsu has an effective impact on its operations. (3) Meitetsu Agency was merged into Ad Dentsu (Nagoya) on April 1, 2007. The name of the resulting agency was changed to Dentsu Meitetsu Communications. (4) Dentsu Table Media Communications changed its name to Dentsu Operations Development on December 1, 2006. Dentsu Table Media Communications was established through a corporate separation that occurred on the same day. (5) The company name of DCA Advertising, Inc., changed to Dentsu America, Inc., on May 24, 2006. (6) The company name of Colby & Partners, Inc, changed to Dentsu Next, Inc., on July 1, 2007. (7) Dentsu Media Palette (Thailand) changed its name to Dentsu Media (Thailand) on May 1, 2007.
83
Board of Directors, Corporate Auditors and Executive Officers Dentsu Inc. (As of June 28, 2008)
Chairman & CEO
Corporate Auditors
Tateo Mataki
Yasuchika Negoro Atsuko Toyama
President & COO
Osamu Abe
Tatsuyoshi Takashima Senior Executive Officers Executive Vice President
Tatsuya Tanaka
Hiromori Hayashi
Kazuyoshi Nobuhara Shinzo Okamoto
Senior Managing Directors
Tetsuo Machida
Kimiharu Matsuda
Fumio Higuchi
Haruyuki Takahashi
Tomoharu Tsuruda
Ryuichi Mori
Shoichi Kishida
Itsuma Wakasugi
Haruo Kurami
Kunihiko Tainaka
Hiroshi Nishimura
Managing Directors
Executive Officers
Setsuo Kamai
Mitsuro Shibata
Tadashi Ishii
Shozo Nishikawa
Yasushi Matsushita
Shoichi Nakamoto
Takehiko Joju
Naotoshi Ogisu
Masuo Tachibana
Takeshi Mori
Kotaro Sugiyama
Kazuo Arai Akira Kagami
Executive Directors
Hiroshi Nakahara
Seizo Wakabayashi
Akira Sugimoto
Satoshi Ishikawa
Soichi Akiyama Tomoki Utsumi
Senior Corporate Auditors
Takehiko Miura
Michio Niiyama
Hirokazu Kizawa
Toichi Ogitani
Kazumichi Iwagami Kunihiro Matsushima Timothy Andree
84
85
Information for Shareholders Dentsu Inc. (As of March 31, 2008)
Corporate Headquarters 1-8-1, Higashi-Shimbashi, Minato-ku, Tokyo 105-7001, Japan Phone: +81-3-6216-5111
Breakdown of Shareholders by Type
Corporate Communications Division, Investor Relations Office 1-8-1, Higashi-Shimbashi, Minato-ku, Tokyo 105-7001, Japan Phone: +81-3-6216-5111 E-mail: [email protected]
Japanese financial institutions Japanese securities firms Other Japanese corporations Treasury stock Japanese individuals and others Foreign institutions and individuals Total
Stock Exchange Listing Tokyo Stock Exchange, First Section
Major Shareholders
Total Number of Shares Issued 2,781,840
General Meeting of Shareholders The ordinary general meeting of shareholders is held in Tokyo in June each year.
Transfer Agent The Mitsubishi Trust and Banking Corporation 1-4-5, Marunouchi, Chiyoda-ku, Tokyo 100-8212, Japan
Number of Shareholders
Number of Shares Held
Percentage of Total Number of Shares Issued
148
680,996.20
24.48
44
78,885.49
2.84
649
940,664.16
33.81
1
36,020.19
1.29
40,768
634,315.92
22.80
367
410,958.04
14.77
41,977
2,781,840.00
100.00
Number of Shares Held
Percentage of Total Number of Shares Issued
Jiji Press, Ltd. Kyodo News The Master Trust Bank of Japan, Ltd. (Trust accounts) Mizuho Corporate Bank, Ltd. Japan Trustee Services Bank, Ltd. (Trust accounts) Group Employees’ Stockholding Association Yoshida Hideo Memorial Foundation RECRUIT CO., LTD. Deuche Securities Ltd. Tokyo Broadcasting System, Inc.
302,186.80
10.86
204,888.00
7.36
141,568.00
5.08
113,288.80
4.07
100,387.00
3.60
73,810.78
2.65
49,848.08
1.79
49,299.00
1.77
42,873.00
1.54
40,000.00
1.43
Internet Address http://www.dentsu.com
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