Medium-Term Management Plan
About “DENTSU SOKEN X (Cross) Innovation 2024”
Based on the long-term management vision Vision 2030, this medium-term management plan is the first of three medium-term management plans.
DENTSU SOKEN X Innovation 2024
While accelerating growth by deepening X Innovation,
we will look ahead to 2030 and build a new foundation for the DENTSU SOKEN Group
Priority Measures
- Business domain expansion HIRAKU
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1.Accelerate existing core business growth
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2.Strength and establish customer contact reform business
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3.Strength and establish corporate and social transformation business
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- New capability acquisition TSUKURU
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4.Strengthen human resources
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5.Strengthen consulting
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6.Strengthen cutting-edge technology
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- Earnings model innovation KASEGU
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7.Enhance in-house software and third-party software
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8.Promote diversification of business models
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- Management foundation innovation SASAERU
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9.Promote sustainability management
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10.Innovate management foundation
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Quantitative Goals*1
- Net sales
- ¥150 billion CAGR*2 +10.2%
- Operating profit
- ¥22,5 billion CAGR*2 +18.0%
- Operating margin
- 15 %
- ROE
- 18 %
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*1Operating profit, operating margin, and ROE targets were revised on July 31, 2023
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*2CAGR 2021-2024
Growth Investments
- Human resources (consolidated as of end 2024)
- over 4,200 employees
- Technology (Three-year cumulative)
- ¥17 billion
- M&A/Financing (Three-year cumulative)
- ¥10 billion or more
About Priority Measures
- Business domain expansion HIRAKU
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The DENTSU SOKEN Group views corporate business activities from two perspectives: activities that create value such as goods and services (value creation) and activities that promote and provide value through branding and marketing (value provision). We aim to expand business by establishing competitive advantages unique to the DENTSU SOKEN Group in each domain.
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1.
Value creation is the core business domain where the DENTSU SOKEN Group has traditionally had strengths. Through strategic staffing and collaboration among the existing four business segments, we will aim for continuous growth following the previous medium-term management plan.
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Value provision is a business domain that has expanded by leveraging the strengths of the Dentsu Group. In this domain, we will consolidate human resources involved in marketing-related businesses in each division, create a Company-wide promotion system set up as a customer contact reform business, and aim for even greater growth.
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Combining the strengths of the DENTSU SOKEN Group and Dentsu Group in both the value creation and value provision domains, we will establish the Corporate Transformation Support Business, to support new transformation and business growth of entire companies, as well as the Social Transformation Support Business, to support social transformation. Both businesses will be promoted Company-wide as core businesses of the future.
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- New capability acquisition TSUKURU
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To resolve the urgent issue of personnel shortages, we will revise hiring methods, accelerate the pace at which personnel numbers are increased, and promote a variety of external procurement efforts.
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5.
We will strengthen existing, and acquire new, consulting capabilities, this will be done to enhance the conceptual, design, and business production capabilities of businesses and services, in order that businesses supporting corporate transformation may be established.
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We will amass more cutting-edge technology personnel and further enhance our competitive advantage in technology implementation across the entire Group.
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- Earnings model innovation KASEGU
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We will expand our lineup of in-house and third-party software, and promote functional enhancements.
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8.
We will strengthen subscription-based services, SaaS, revenue sharing businesses, and BPO businesses, while expanding partner co-creation models to promote the diversification of our business model.
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- Management foundation innovation SASAERU
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Under our sustainability policy, we will promote management that contributes to the realization of a sustainable society.
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10.
We will implement innovations in business management infrastructure, personnel and training systems, Group and organizational structures, and branding efforts.
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Shareholder Returns
The Group has continued to increase dividends through business growth since the fiscal year ended
December 31, 2013, maintaining a consolidated dividend payout ratio of 40% or higher since the fiscal year ended
December 31, 2019. Going forward, we will continue with our basic policy of maintaining an appropriate level of
steady dividends while retaining sufficient internal reserves to ensure sustained growth, with a consolidated payout
of 40% or higher as a guideline for the dividend payout ratio in an effort to enhance shareholder returns.
Please see below for explanatory materials on Vision 2030 and the Medium-term Management Plan.
Notice of Revision to Medium-Term Management Plan