DENTSU GROUP INC. (4324) Stock Price

The Dentsu Group provides communication-related services centered on advertising. Specifically, the company operates a wide range of services including ad production, digital marketing, promotions, and event planning. Through these offerings, Dentsu supports clients in enhancing brand value and strengthening competitive positioning in their markets.

In Japan, major operating companies include Dentsu Inc., Dentsu East Japan, Dentsu West Japan, Dentsu Kyushu, and Dentsu Digital. These companies provide region-specialized services tailored to meet client needs across the country.

In the Americas, key subsidiaries include Dentsu Creative Advertising, LLC and Merkle Group, Inc. These companies strengthen Dentsu's presence in the North American market through creative advertising production and digital marketing services.

In the EMEA region (Europe, Middle East, and Africa), operating companies include Tag Worldwide Holdings Limited and Dentsu Aegis Network Central Europe Holding GmbH. These entities deliver advertising services aligned with regional market needs while leveraging the group's global network.

In the APAC region (Asia-Pacific), major companies include Dentsu (Shanghai) Investment Co., Ltd. and Dentsu Asia Pacific Holdings Pte. Ltd. These companies execute advertising strategies across Asian markets and provide services responsive to the region's diverse cultures and consumer behaviors.

Dentsu Group has formulated a new medium-term management plan aimed at returning to organic growth. Moving away from its previous M&A-focused strategy, the group is reviewing its business portfolio and concentrating capital and human resources. By fiscal year 2027, Dentsu targets an organic growth rate of 4% and an operating margin of 16-17%.

The group will work to restore profitability through a review of underperforming businesses and a reconstruction of its management foundation. In particular, it aims to eliminate loss-making markets by fiscal year 2026 and will conduct rigorous reviews of past acquisitions. This will place the entire overseas business on a recovery trajectory and enhance shareholder value.

Dentsu Group will provide "Integrated Growth Solutions" that combine marketing, technology, and consulting. Building on the deep understanding of client businesses cultivated in Japan, the group aims to become a growth partner for clients in each market and achieve global expansion.

The group prioritizes shareholder value and capital efficiency, adding ROE as a management metric. By fiscal year 2027, Dentsu targets achieving ROE in the mid-10% range and will reset its financial policy accordingly. The group will carefully manage the balance between capital and debt, improve balance sheet health, and advance business recovery.

The group is also strengthening governance and internal controls. It will properly operate the One dentsu operating model and establish a cross-group governance structure. This will streamline business operations, clarify accountability, and support sustainable growth.