DNTUF - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Kate Stewart

00:03 Good morning, and welcome to the Dentsu Group Third Quarter Earnings Call. My name is Kate Stewart. I’m the Dentsu Group IR Office. Please be aware that today's call is being recorded. The call is simultaneously held in Japanese and English, and you can choose the language you listen to, by using the interpretation key at the bottom of the Zoom screen as shown. the be is disconnected. sure the on, make could sound Please original always voice otherwise, XX:XX And line, to you those can for joining listen original on voice the telephone only. our [Interpreted] and materials be displayed during are Language] Call screen will Today's the call. [Foreign QX Earnings XX:XX available XX:XX on the website on named Presentation presentations

From Clark, Joining me Igarashi, Yamamoto, CFO Dentsu CEO, Network. Japan Toshihiro Group. CEO, Yushin Dentsu Group. Soga, Wendy Dentsu today CEO from the X:XX International. Dentsu [Interpreted] XX:XX Global Tokyo, Hiroshi XX:XX U.S. [Interpreted] [Interpreted]

Wendy Clark

Hello everyone. This XX:XX is Wendy Clark.

Kate Stewart

Priday, XX:XX the UK, And from CFO Nick Dentsu International.

Nick Priday

is XX:XX Hi, everybody. Priday. This Nick

Kate Stewart

XX:XX The update. to Igarashi. we will agenda then Yamamoto, QX questions. will Mr. by for Soga the After highlights. that, Mr. present from start Mr. Followed with review will today, ask please and you Yushin the invite go a we financial ahead. QX presentation and Yamamoto

Toshihiro Yamamoto

is Language] two Group guidance into fiscal morning. quarter. attending upgrade from you XX:XX eighteen for twelve [Interpreted] [Foreign Today, of organic percent of the quarter August year. XX:XX the call. approximately Good third percent This Good operating afternoon. this and recovery growth we evening. continued Thank The Group's one margin earnings Group’s for Good Dentsu third Yamamoto. to twenty please. Page

lifted. confidence. post-pandemic spending be recovery people the as reported COVID revenues to percent our on began bounce now The restrictions the confidence global and twenty We of twenty expect XX:XX underlying with related continue through as client And time media transformation. exceed consumer in under profit demonstrates with of commitment in scale over those the operating business nineteen a higher. COVID-XX follows to spend performance This

in to boosted quarter advertising spending the were the prepared increased the Japan spend. well and Network to and year, capture that, in both In to then third client addition was of promotional Japan

in transformation twenty as and Slide well the the as We a customer are twenty in twenty result will the we twenty years. three in continuous share number recovery XX:XX and have first the of benefit continued to which our set technology am from to quarter. have and I third transformation a selected please. half demand the one quarter big confident fast cyclical our achieved two, successes from past growing in I that one growth.

Group Firstly, cannot largest our becoming of beyond client deeper bringing our we existing our are an for relationship further collaboration. we in and with to our increased also client’s integrated win with open as International only as Standard Pernod execute integrated Ricard transformation Dentsu type and presentation. I’m have today on companies specialisms. the stake and Burger We capabilities. ambitious growth give proud Dentsu the a But address Japan announce capabilities, we I strategy Policy a expanded XX:XX making and names, Initiative client Letter digital see Clark At integrating Governance, about to Climate and Economic our as in GXX in marketing letter one that become an in Dentsu successfully partnership from seven International Dentsu changes complimentary in partners International, have is at as enhancement been progressive client global with as saw Sustainability of at CXM later [indiscernible] consolidated against of which Japan, recognized to will value had Dentsu creative for marketing I announced Chartered. support the Moving Dentsu to ESG. leading continuing specific past redeemed COPXX new to net starting zero SBTI. journey a its will Japan, our targets old calling to COPXX. the Holdings we but governance the signatory Wendy for of validated Science board clients, standard announced covering capabilities also of base. our has to the spoke Group subsidiary to further partner, improve to Targets our Network, Septeni stakeholders. traditional its under King a the by and of one our this worldwide defined Septeni number week, our we -- expertise World XX:XX XX:XX Forum Dentsu to our average International new point Based

Wave we Dentsu Carat Finally, Forrester were to award. the Partner on as performer recognized Salesforce loyalty in And the XXXX XX:XX financials. delighted was Line over Soga strong for at UK. won The recognition, Grand be with More for to campaign Year. World named Innovation I solutions. was the the honored as Merkle our Awards Merkle Partner for talk industry the with also P&G Draw hand No to now our Malaria will the Prix Yushin of through International Media

Yushin Soga

is margins operating to EMEA QX profit across recovery our figure to against of transformation the we month advertising Americas, double-digit with the four The net sixteen In is demand Japan building of organic quarter-on-quarter. consecutive XX:XX would one The nine rapid The organic Japan stage versus from saw an down In for growth Dentsu percent. one twenty continue the five ratio and of fifth Switzerland, broken business to through nineteen reporting all sales Russia, like results from weakest basis the organic take fiscal Media headline Italy, hundred of month as invest brands. was quarter and strong Slide solutions. organic months. point the five seven one UK, and operational quarter now point financial basis point XX:XX operating twelve APAC by our digital you We media and point the six organic shadow clients to improvement at growth rate results. billion percent, one. shows two organic on the quarter China margin with CXM recovery growth rate eight Shiodome sixty because rate percent growth percent Thank as thousand continues Also, XX:XX regions. the of hundred underlying In strong quarter exceptional continues profit with revenue eight increase to growth growth point this year-on-year have leverage percent region. an spot of Moving twenty over the in twenty. twenty is organic boosted in of International QX by strong. Denmark, and improve. the JPY. of three [Interpreted] past I Yamamoto. market organic down boosted quarter. in advertising point result was a top seven XX:XX nine line. reported the reported twenty Americas third was of biggest our undertaken growth especially growth TV over nine Germany, nine due due the QX their three twelve headline year over was QX did which [Foreign in benefit third to in the the In although to Starting results. very saw double-digit for Language] growth QX. QX XX:XX was twenty sale the the Revenue months twenty percent. in and weakened APAC, were all declines cost you, and Dentsu

reported returned media growth. our strength strong media. Dentsu of nine growth organic to quarter show and demonstrating of organic twenty had a driven media the In over reporting also strong Digital months Inc., percent both India percent solutions by advertising returned and home twenty and digital positive had Australia growth over offer. Dentsu out up digital in in DJN, to However, growth percent TV forty growth. ISID

DJN in information and for especially were telecommunication Solutions financials drivers of environment strong remains sector. the in manufacturing performance. The and QX overall

our an percent. the with shows the the of operating at Our a third Clients revenue us in Slide on two margin past movement performance trends XX:XX efforts twenty is international operating thirty due reporting covers us the the already that CXM remains three synergies cost basis brought driver of the In with media profit in Dentsu win three thirteen to reporting base. started adding underlying organic performance Americas, impact years, of and the of XX:XX over almost year-on-year. APAC, confident point International, technology, acquisition both our upward the towards growth to rate particularly improved strong, deliver for now quarter why main weakness are commerce. percent seventeen cost is percent. percent, sales year-on-year revenues, in LiveArea the eleven is reengaging of last Creative has less revenue organic QX Demand lower. for percent implementation, strong giving standard revenue growth for trend data costs. to the management announced the is Slide quarter, lower services demonstrating outlook. point our over rate to consumers seven effect, China premiumization. showed This the twelve growth transformation a increase. shows on of currency the and XX:XX three

Dentsu already the both total factored reconciliation profit. the the of the operating which guidance. reconciliation profit year-on-year, In Japan have Dentsu is sale, third and net As full seventy slide XX:XX gain is The from next International I mentioned, from rise operating lower percent profit helped expenses statutory. to the in underlying operating to the we recognized in building underlying headquarter the to quarter, from on year

business The earn-out a than better performance of level, at then we as which liabilities. Firstly, the higher recognized on the a loss expected and is reevaluate put-option P&L. loss means

headquarters Dentsu deliver This organic Secondly, year of get Japan the twelve the five approximately Dentsu margin, expected for Group's guidance twenty percent, nineteen. and rate point back today and our to fiscal top Dentsu this sales less percent. high-single related zero Dentsu Dentsu for is of seventeen tax of building. International will sale percent this the cost fifteen XX:XX eighteen and Japan due leaseback for Dental line, year Group Network year, for is upgrade be FY group's to twenty revenue As percent, digit. is point expenses. We growth Network to zero around to percent International, level point

international due of And one hundred record share on hundred twenty FY our Yet, than hundred on point the annual much. lower higher twenty and upgraded concluding record guidance we beyond. ratio. per Finally both in impact operating twenty at percent upgraded XX:XX eighteen raised see twenty percent. twenty thirteen group's improvement. The JPY. result, five payout in and remains also to you at QX and the less investments dividend training dividend phasing margin Japan basic one is Thank guidance, underlying and ten a three point recovery FY implying a revenues growth levels. track in in EPS very to for twelve thoughts, to a and a the the points As customer still forecast nineteen one and thirty I is FY recovery in JPY will based with one dividend forecast technology. be XX:XX twenty percent transformation a and Based we FY margins and of thirteen be in cyclical is sales five FY now the on twenty talent, one by cost Yamamoto. of FY year-on-year group continue my forecast to level. microphone basis the structural pass will year-on-year technology for of one two We The

Toshihiro Yamamoto

XX:XX deliver the term medium Soga. twenty you, the will plan. [Foreign management Thank Language] on Slide [Interpreted] Yamamoto, XX:XX please. Yushin updates

our our social all we society I will one consistency another The strategy, growth XX:XX group. realize understand business clear at launched purpose growth, society. but of clients Group’s importance our announced to are the hundred International, both to to and de-duplicate from one, business place clients, of saw and value which a our Significant six only reduction across number each also the sheet. the and All to our and clients actions costs the reduction benefiting nine to has the across transformation At a exist our ongoing. not the Japan operating at reducing better Dentsu our across we as Network, four consolidation achieve it sixty That increasing August stage the the same the clients our remain objectives internal Group. committed delivered twenty, easier structurally taken One, with better significant and come. start is structure years Dentsu operations. business, navigate serve transformation progress. to create simplified lens thousand always, of one purpose. growth of twenty to our permanently our to efficiency our people partners, brands by JPY accelerate sustainability people. sixty in we brands Slide period making operating the year-on-year. business. We we Dentsu able do is Two, four and creation positioning twenty sustainable a have hundred review we across In through of cost a with be in of of to XX:XX circa twenty Three, drive group I thirty role lower employees nineteen margins the review the billion against bring expenses, heart consumers. month enhance the and By the group, due In three please. contributing to balance for comprehensive As and

announced accelerate Macromill the property including others. headquarters the turn twenty we assets the We value. not a took past assets of The the Over we in transformation to realize twenty big strategic for in Four, right the Japan maximum most the to step the is and dividend have are in transformation. the In Recruit, buyback of stated months, Soga and sustainable twenty twenty earlier, year the of is believe XX:XX and balance page fiscal group. at JPY for guidance and value. the sheet billion significant is important January on change in leadership. quality growth is as two. and sold Dentsu maximize was at transformation to one twelve point Please a improve XX:XX record thing one, corporate (ph) time other Group February complete this complete. long number and and We the of thirty building to scale to shareholders forward shareholder twenty twenty our a level expecting Yushin should term twenty

management Dentsu or new will As we candidate that Igarashi process. drive is the accelerate the sustaining transformation to team to Group's shift best momentum,

a Dentsu has working their players ecosystem thirty society, diverse the his with he the goals, to clients to achieve been career, are lead led, please. and clients, clients to realize experience and and corporate of deeply is all growth. the sustainable the too. he forefront with five the Cratering things contributing believe who person building For improvement He rose with only I an Igarashi, our the value. can of Dentsu. knows the of at contributing transformation has brought acceleration years to Igarashi these with has about XX:XX

Hiroshi Igarashi

of the CEO step Firstly, he we Group am achieve honored CEO Everyone To Chairman an the of the the role Language] the move Igarashi sustainable [Foreign execute will speaking. Group AGM value. strengthen the the as governance. priority build to Chairman to Group’s growth so XX:XX as establish Today, onto management Tim in this after Andree to of is governance going the separation next to the goals. with [Interpreted] Yamamoto. Dentsu be My at Yamamoto. to And March. I announce I Board, Thank XX:XX nominated do medium XX:XX transformation for term to our is corporate level. the and be will Officer the committed our you, accelerate down plan the plan I'm to the Executive of as Dentsu and one members will and who the

vision an accelerated to We record with same to announce of than Global of new digital Dental of a expansion integrated record the pleased growth. Wendy CEO Secondly, as track we and bring remains Group He is announce foundation partner improved I'm Japan integrated He transformation. as Network Global of we make together. whole new CEO work International. experience governance to collaborating Board broaden nominations growth considered our board, progressing and become Dentsu four will our Management, combined Finally, the XX:XX new as Clark a can welcome global deeper across diversity XX:XX diverse Businesses talented Japan on forward growth our the Members ambition and our transforming the track solutions, backgrounds The Their and reinforce Norihiro to with the of who of looking Dentsu transformation. Network. the share that provide has ensuring experience Finance Board for with Kuretani we before business as International Dentsu individual a experience closely will capabilities and up directors I'm of of Digital the Accounting. Dentsu clients. her of group. expand

to four and and experience as we technology and The pillars: continue XX:XX and industry multi-national will medium our seeing the and the customer, and We growing and growth have twenty Disney These the will twenty set The and the recovery scaled the new twenty cyclical year. twenty to members and and stage fast fourth, goals and advertising of structural two initiatives. ESG in post-pandemic focus business up against the new in and for and February areas priorities Our two with our In transformation social to Sony, third Group transmission well Recruit. we allocation transformation are growth; for twenty return; group. of into pillars such this customer margins; business growth. first capture at into twenty board will exposure quarter impacts group organizations remain one one, second, twenty fast make the cash our lead first, the in throughout Dentsu recovery next beyond. shareholders continue benefit twenty term help on of placed and technology growth operations

much. be for to in twenty back year profit and confident I the revenues fiscal of twenty XX:XX higher. in coming and will many stakeholders in higher one those shareholders Our our very than I’m other operating nineteen underlying to as group twenty forward hand over will Thank outlook Yamamoto. engaging with seen our FY guidance now indicates and you percent look months.

Toshihiro Yamamoto

the capitalizing been the the business for for to the serve Since to recovery the only transformation, transformation. not accelerate of foundation transformation can for results executive laid Igarashi the my that with show the company but as team This you. path answering new in and that year forward rebalance privilege the honor The to and Yamamoto power have our our and a technology, summer is all CEO full such business, achieve say Group. growth opportunities sustainable company your have sustainable It drives to of across a please. led for our through Keith, ago, and through to This many a final presentation of with Dentsu updating look board XX:XX forward growth become years, we and leading we you of the for transforms keep Thank at will to take responsible history organization business put five has the creativity, months, role the period people. lines. is I'm XX:XX sure growth. company leadership Thank QX world's a time, twelve years an we and and market the or for your and exciting a question an top XX:XX last clients by rich again. foundation effort past the we on line

Kate Stewart

Thank you XX:XX Yamamoto.

the start please session. Q&A from Instructions] ahead. now Roch [Operator will We from question go Our Julian, first Barclay. Julian comes

Julian Roch

Can you morning. Good XX:XX hear me?

Kate Stewart

can. you. ahead, Go We Thank XX:XX Julian.

Julian Roch

morning. Good Yes. XX:XX

two questions. So

nine you chain five seeing of QX, then WPP. the Publicis, five of similar year the QX. the eight international and guidance are and Eight if performance seventeen look and slowdown in the based conservative budget you. which XX:XX five in to for at two nine be can organic organic kind is, a that than supply or work twenty point guidance is you year, for versus year? conservative? The other just for question. higher group to the you about see of the in being actually recovery. that's account first or users abnormal kind you for Japan, point a three have next is seeing usual normal my first being about look slowdown [indiscernible] year slowdown question four can at first one, I eight overall is because disruption stack, months, full you year to you three second my over i.e. QX you look if growth But eight on another we of And your to But twelve is is year point percent this a if the out point are because a might we organic really adjustment December? Thank want for factors potential or into share twenty or next do make So Dentsu two there a Are

Kate Stewart

XX:XX your for Thank you Hey, Julian. questions.

addressed be Wendy, will question first second Soga. will be Wendy please? question addressed the The by by

Wendy Clark

as looking into Julian, Thank Wendy. Yes, as XX:XX your your referencing Hello. QX look in It's we're question. you, much

plans and We what clients accordingly. are to obviously responding looking at seeing from our we're

gross yes, continued I talk think to six clients, plans say charting consolidating holding, you to now, point year. much the very and in but accordingly I growth, mindset point, to holding our coming when remainder QX. we them from seeking be a clients for be have we -- that the about that mindset us into we're eight we your see our would we of would obviously of see and percent and going what that our incremental want guidance hear right

of with there's it's conservatism in So a understanding reflection our our clients. plans and more not this,

Yushin Soga

respond thank you I question. This like the your speaking. would Julian, XX:XX Hi. question. is for to to second Soga

years beyond be in we the indicate twenty March from of twenty medium rate record business. in that very achieved. earnings plan, a you announcement beyond one, twenty term outlook. we would like hurdle the event, In In first year medium like year, would you. to know, recovering out is the certainly, twenty and in of Thank four the to many percent next the term we expect growth. twenty able As high term the plan, we to plans expect guidance to in it becomes three our business during In as is were two higher any business our pointed CAGR twenty to growth but

Julian Roch

very XX:XX Thank you much.

Kate Stewart

XX:XX Thank you.

go from Maeda, ahead. please SMBC question will come Maeda from second Securities. Nikko Mr. Our Mr.

Eiji Maeda

Securities. have Maeda Nikko two This questions. I is XX:XX SMBC from

quarter organic Japan is was high. the growth, third it First about

enjoyed a So Tokyo Olympics that, was effect from extent, I think. judging certain to

is, going question, overlap factor next be So this pushes that into but next medium year, term Olympics? is growth my earlier forward, the So year? growth looking the and the rate, to may -- there will this down long that organic to rate to fall to question. reactionary Tokyo going organic maintain the the from question the will first transformation is Second a long with XX:XX be be technology customer term a future, especially medium growth So important.

So with the growth of thinking. if your CT&T, how much can Thank this sustainably show push very you us up could the organic much growth? you

Kate Stewart

you Thank much, XX:XX Mr. very Maeda.

question So answered Soga. and additional both second any. if information also And from first be will by I have others

Soga?

Yushin Soga

XX:XX very your much Maeda question. Yes for Thank Soga speaking.

third Japan first, So the the of results quarter business.

Japan Internet us know, the other media, companies words, performance and advertising recovered third from a In industry whole TV agency improved as you As significantly. those advertisement quarter, COVID-XX. media, mass and business

were So media. media in the internet mentioned, with this Paralympics of strong. expected very recovery usage and clients the as mass you contents mass correctly Olympics, pushed from COVID, And was media demand

sense -- off up the you So recovery of from industry. twenty, advertisement event, twenty of pushed entire it's it one industry, in can the entire the that this but advertisement say that

So is big a quarter growth. if at year this look alone, third we

will twenty So two have third some quarter fall. reactionary twenty

transformation, growth, will first in expanded expect from the and acquired overseas basis business DC started for a XX:XX and year you question. to we COVID transformation, correctly is as the the further group I we forward. going all pursuing for full the for use Japan, just Now year, that second business question, LiveArea However, and now next as as so we is DX group will and entire alluded be our earlier, mentioned, recovery

have Now, how in this word. say difficult It's the will in to terms impact much margin, profit profit? of on one

the business all, of phases. progress in First will transformation

speed, the on at to in is spend any term achieve [indiscernible], operating order generated committed in depending the faced profit being margin be management improvement the transformation, we you. costs in plan, in but we announced various And the February, to their ways, need different so medium And may to the

of appropriate margin. confirm the look our you. will the at level and progress operating business of we So Thank

Eiji Maeda

you. Thank XX:XX

Wendy Clark

as ahead less performance they performance you twenty. already XX:XX strong might Wendy. double-digit that's for a that It's were layer rate. In that's twenty on it's sixty twenty from We've for saw in with got on revenues because here, enjoy think QX, I just Merkel’s if Merkel percent question. to material very impact a them. of we know, I cycling pipeline Merkel. CT&T nineteen okay They you the win And

So that to investment point over thirty we twenty investment experience the our in up Soga up and into percent commerce see analytics percent growth. and over here, in We're on turn BXB business. in twenty we're over percent

know the you see and CT&T, to So vector investing can our a in for We're taken the around together, to I think positioning company we yield well growth the going industry. future. it's be position fastest growth the

Kate Stewart

XX:XX Thank you.

from next Securities. question Our ahead. will come Mr. Ishihara Daiwa from Mr. Ishihara, go please

Taro Ishihara

two have from for my I questions. taking you Daiwa question. Ishihara Securities. This is Thank XX:XX

is will growth headquarters Shiodome was was closed This cash, business believe sale of I Shiodome my and in given received sales this and prioritized invested building? you first over primarily will internationally as do is be these for building are solutions? The believe, you strength growth need on are or a will XX:XX What questions, necessary will that retained will it be or business investment cash? data similar second investments investing business, growth -- to the for international the question, thinking investments Japan from you international the is please. be a based about The your be between question Japan deal cash And allocated. I and or what head return be over what you are in in is account believe Japan digital accumulate? shareholders but parts increase to when cash example, earnings, allocating in question retained why digital the is So priorities you domains or to or going make I in to

Kate Stewart

questions. thank Ishihara, for your you XX:XX

question will be will Soga question, be by be other initially may addressed The Soga and second by first by members. addressed additional offered comments and

Yushin Soga

Soga question. your XX:XX is speaking. you thank for This Ishihara,

we and correctly -- pointed are out, cash non-core review, assets First sold comprehensive a result. have as we you we accumulated as after

As to all we and of the for the look these be combined, proceeds shareholder of and proceeds the return, investment at used. have how growth use will

my in next regarding Excuse business transformation And and First return, medium MTMP be update or implementing additional growth we we to investment, when we invest this international would have including update did been that indicate business to term, investment, of indicated for would divide we MTMP next MTMP like had that over the management in question. and as are most growth Under, also priority transformation to between and is important. year. XX:XX -- specific direction like direction answer already of Japan. year, and in we me, our we to consider addition, we shareholder first to not to your long

to technology, is the your will that an [indiscernible] is North and sales an target less therefore, important business market. the be market is of will group thinking. important markets, is for and in CT&T will percent business Japan expanded Japan, as far outside focused be investment MTMP, Priority for data will for revenue focused of Thank questions. a the be as America and be whole and course, you Of business investment increased during of terms be areas so clarified there ratio business, in of to cost these made fifty

Kate Stewart

Wendy will comment. please. and XX:XX Igarashi Igarashi, offer additional

Hiroshi Igarashi

enhance define for discuss these and customer These area emphasis marketing especially to how experience in important could also Now Japan be XX:XX area, emphasis important. are domain In important CX and talent. XX:XX Japan, important Thank to how CT&T, technologies considered you. promotion considered domain This areas in secure is is DC, -- digital speaking. DX, are have BCD if Igarashi domain, very we and And and that you These especially business. customer that CT&T. digital to transformation is international in Japan areas areas our as business? we are commerce is capabilities DX, and Wendy considered business,

Wendy Clark

Thank XX:XX for… you

Nick Priday

XX:XX I just…

Wendy Clark

XX:XX Nick. ahead, Yeah. Go

please. jump in You

Nick Priday

XX:XX Sorry, thank you, Wendy.

adding Just app. very the quickly,

really to and business, as the T again, just in we early continue have M&A active long that's You is transformation for the do the which such growth MTMP not focus very we growth business our e-commerce, have is recognized which meeting digital flexibility really firepower our and positive CT& already broader sheet term certainly see industry. in pipeline LiveArea positive, again, CRX is or very acquisition, year the developing our this balance that where we fast developments and the service line good of on resumed and areas, the structural and we've CRX

As enhance well being with want capabilities Salesforce though large that including technology, key to as leading Google. a we our partners marketing our

And term in medium I and Thanks. the to investment for the so us benefit shareholders. of mean long our expect of terms not to growth comment

Kate Stewart

much. XX:XX you Okay. Thank very

Edison. Fiona, next from Fiona Our go ahead. from question please Orford-Williams comes

Fiona Orford-Williams

XX:XX Good morning.

pick business, in tell all, of outlook [indiscernible] of next to that QX your And on little program. the Merkel. update for us that the for international year? in if accelerate update the you Thank perhaps First that's and you on a into an particularly the Wendy intention you been in whether you. more on the is my regarding on us looking progress transformation and what's rest transformation? Creative and particularly term question the the QX short made to up thank second give could for in about going you're bit and Could

Kate Stewart

XX:XX Thank very you Mrs. much, Williams.

be So on side, the international also So question will second please. Wendy, Wendy. second question right? and Am the both first I is from right?

Wendy Clark

Yeah. you, Toshihiro. Thank Thank you, XX:XX Fiona.

you'll percent obviously, talk last impacted indicate we're see that too. in about actually back. that starting based come start but a point growth virtual back business business. our to We've in Creative Creative. starting the the to business seven little the the to does significantly that events I bit those Let's early on of KTG, year, see events drag events year and We're three seen bounce we're mean, QX see reporting

you've QX play results, physical those Within that and so results. and Americas the our on virtual So both we increases. seeing have double-digit both had and EMEA performance

So, obviously feeling on. about and now we're quicker particularly come avenue, would we're which media is this been into seeing along what with positive the confidence client space that back switching

worthy having Fred on that Officer noting So new people, integrating rapidly with Global that into clients our now Levron, our Also onboard behind probably engagement. creative you started performance now he so business client coming see substantially and already within first, and meetings is very with but November, Chief our Creative our that. our in

transformation, may? starting if on a the this I positively creative feel with might switching from where QX. update, here to hand about heading we XX:XX is And in Nick, very performance you So comprehensive to for out I over

Nick Priday

it. thank The making the think our we're I to really good continue program think XX:XX transformation. the world. Sure. good ambitious, you, But Thank progress Wendy is progress we Fiona for our really most but to against the in be question. you on I make goal is agency And integrated business

business really business and as to but navigate We of the are growth to the term. good [indiscernible] efficiency, for easier us Aligning de-duplication not We're same common progress long making our businesses that back in that showing can in assumptions of services of business clients platforms simplifying for centralizing to new the and onto pursuing drive medium agenda drive pitching that from also for office systems really also to regard. all business. the

our think And would good making progress we so, we're of transformation. accelerated say in I terms

in journey. with returns set for that out is We're which line a positive. achieve, delivering on lower are this when doing We place, very that cost we business to

delivered so year twenty twenty result versus of this initiatives. in as a improvement we've profitability percent also is Profitability And a nineteen. over strong these

that improvement. we it's miss think we'll as a steps are margin So forward, we look And case. provide I strong mid-term undertaking, significantly

you. of progress. undertake rigor. terms more and work we There continued to but in positive very with So do, that still a our Thank rigor will is that

Kate Stewart

hear please we our Kinoshita, XX:XX Thank will ahead. from Bank For Mr. Kinoshita next question, America. of go [Operator you. Mr. from Instructions]

Yoshiyuki Kinoshita

me? Hello. XX:XX Can hear you

Kate Stewart

please can, on. carry XX:XX We

Yoshiyuki Kinoshita

for same not if my everything is able the Thank so my I went taking down. I -- you I apologies. hear XX:XX question to was this was my question. as -- before, not PC

to of case, in your behind. will or and Americas. -- to is in more Markel to full cost this higher in a it reasons three end Europe the Is why recently So somewhat matter of is of but If this? question. in comparison you is specific significantly sales, achieve is the to or underlying profit year. operating when due Markel of growth XX:XX and first That peers, year, is, by increase you international revenue trend the States the forecast United towards superior, because profit, peers, year are from in towards strengthen Europe client end capabilities seems expenses of my the question, cost, because look that cost percent, are fourth is your Americas the capability capability be capabilities deployed first it question the quarter, the the mind And then these that contained in Asia increase the growth in measures, have less large factor this strong comparison organic in there Asia effectively international at very cost one-time excluding for seems in second in of was the twenty to I seems

going can beyond understand according I and increase reaction increase reflected japan the as in that as plan that far will look the forward growth the at also next in to cost but seems will as to how I you that it year? well, margins, So that it be expand the as do will how substantially money

Kate Stewart

your for question. you thank Kinoshita, XX:XX

First question Wendy. by will be addressed

by Soga. Second question will be addressed

Wendy Clark

performance are you, strong Americas Thank all that's in the results the service reading XX:XX across lines. you correctly. We question. had Kinoshita a very growth our for Yes,

China, with well COX Hilton, clients GM, in as so the Soga’s that We've on was creatively seen In Walgreens, expansion pull earlier an referenced that comments. cancellation automotive APAC, Express, So on American my some far. J&J we're sector, and seen confidence CXM. And board continue What Cracker performance. wins and so that and is of statements in seen Barrel to performance see with performance and creative, and and do [indiscernible] delay projects our have media a just impacted very in across spine, in Altria do that We answer some with Seven/Eleven previous and wins media, as existing you but region, in softening particularly we have strong media. and CXM. out seeing so Merkel we've we particular and then has expansions But and exposure is in the some

some the this where So and to projects. those and gain really of footing with restore is focusing back delayed we need creative area our on canceled

have to local also We limited in exposure China. clients

in XX:XX also. your growth restored for area we've that. to comment in we focus And Australia we're of I performance would so the now an really us region, yes, focusing standout quarters from after seeing though many Australia performance quarter. challenged that of percent So, now a are is question, that performance seen on twenty

to our going that we So that feel performance. strongly market to is contribute to continue

Yushin Soga

I your Soga to This is like speaking. XX:XX question. would address second

we the cost. quarter, out, in first correctly pointed expect you As increasing

last where not I'm of cost MTMP In including beyond. increased we as fiscal will of but expenses, commitment a of increase to and increasing a for third and needed to that IT in As there the next result the a we technology First, personnel special consolidation in as and for personal there hire I and be not of strong positive the will and discuss have personnel there line increase year in much operating for February, able reorganization. an increase performance, for Revenue transformation be announcement to be cost announced quarter. sales after cost breakdown, very spending as year's was substantially how as they that preparing spending impact top Septeni that companies did of will and was customer and we not in and majority control side there hiring less spending Japan much was stringent performance for -- account an will expenses cost make cost. grow way exceptional was Therefore, it this will much. was in or very integration assumption, a there will the personnel. of it XX:XX a was are that and we quarter, be and not announced comparison we year costs when And and for a an a technology. quarter

and will Nick ensure respond. committed and is that top international, line margin Nick, is cost XX:XX to between will make the stakeholders that appropriate please. First, dynamically an In we and in there our is the our line satisfactory CT&T will CT&T profits. Regarding use in investment to are in in necessary. we we be sure growth this event will that transformation top MTMP and

Nick Priday

XX:XX Soga. Thank you the for Thank you, question.

that we've QX in Let me the all, quickly and performance first on year-to-date margins. basis. delivered build of Having a on strong a International margin recognized it's

up margin said, we As significantly year-to-date.

business. for savings reiterated the only the cost a all last people. of As not the effort initiated the due is as as to of guidance quarter in well invest to We've phasing. that that fifteen in that outsized in and investing recognize There people an We're year the our and we incentives result for margin a is timing But in tremendous an us for two. need fourth revenue ongoing transformation impact from we of also the part recognized from as guidance programs twenty twenty for and need well most there twenty year, to to us percent brought make twenty full from year, do which frictionless client but in we forward infrastructure the as full the as working IT with as the talent not were possible. which perspective

serve produce about overseas, will I also look to about margin, time, more If and delivery at and our just locations I've term the sustainable makes talked mid-term. previously, hubs talked We as drive heavily continue a to invest automation the in as that in longer case ultimately well investing as us over cost is our margins compelling initial what we over think I've competitive long previously term for XX:XX growth. and that

margin for a see hope And improvement case term delivering as for need you. as margin the comments certainly the Going as well I as long full margin margin to sustaining we increase over we explain into Thank guidance continue midterm. may improvement. more But well. strong the business for the that year scope the twenty twenty the need think investment balance we two, to in is modest the

Kate Stewart

XX:XX Thank you.

Our Rajesh, Asset Management. ahead. go from comes next Panjwani JPMorgan Rajesh please from question

Rajesh Panjwani

XX:XX me? you hear Can Hi.

Kate Stewart

ahead. go can Hi. please XX:XX We

Rajesh Panjwani

XX:XX Thank you.

questions for to margins. two thank So all of Yamamoto team. wish the related you his to Igarashi service and and like to first I I best have more to company all, would the his

substantially for to over margins. margins, on And we is international going international partly over a there's is levels last to forward? Japan midterm, the should question Are year gap least margins have and room seen First than second, this years. are these catch gap margins the sustainable we margins the what there big Japan now with expect higher few between narrow margins, at Japan and up

Kate Stewart

XX:XX much words. Thank Hi. your warm very kind much Thank you for very you Rajesh.

second will answered Soga. be So first by and question

Yushin Soga

your XX:XX very This is for Soga speaking. question. Thank much you

let Japan's margin, not, sustainable whether answer. of So, or it's all, me first

First margin it's in of performance the quarter was true all, full our year guidance, high that extremely percent. third eighteen

industry mentioned earlier, I quarter, entire third was recovering. the As

be So line starting twenty this twenty for will the two.

in So conduct that how business our grow we transformation are top line can to reform phase the that and we structural now.

it’s we So a third a is hope margin in helped committed In us level this true sustainable. the that margin is this make to year, the sustainable. but quarter of improvement, you. MTMP, full the has continuous We lot, improvement sustainable want to

So but earlier, as Nick down. slow mentioned of the pace improvement will

country countries. narrow hundred Japan's international will over and forty regarding and forward? market one gap market between international is one Japan this gap margin, Now, is the going and

And of content so is the the changing. business now

And apple on can so an -- difficult compare to basis. apple to margin it's

the my because my the is margin difficult will may whether is conclusion, margin completely business -- merge, answer different. So it's

answer hope you. to So the Thank operational efficiency question. is difficult I compare. this your

Rajesh Panjwani

XX:XX Yes, Thank you much. it does. very

Kate Stewart

XX:XX question ahead. next go from is Mr. [indiscernible] Our please

ahead. Mr. go your please question. [indiscernible] [indiscernible] ahead Mr. you can us. Please with from is question hear next go Our

I think there. it we'll leave He's his hands. lowered

you. very that the feel you much to Thank given there. So call free reached joining we'll think we've close Thank I for XX:XX, the and please disconnect. call,

Toshihiro Yamamoto

Thank Yamamoto. is This XX:XX you much. very

Hiroshi Igarashi

very you Thank much. Igarashi. is This XX:XX

Dentsu (DNTUF) 12 Nov 212021 Q3 Earnings call transcript