FY2015-3Q Financial Results Briefing - DAC...-3-FY2015-3Q Quarterly (Oct. 2015 to Dec. 2015)...
Transcript of FY2015-3Q Financial Results Briefing - DAC...-3-FY2015-3Q Quarterly (Oct. 2015 to Dec. 2015)...
D.A.Consortium Inc.February 5, 2016
FY2015-3QFinancial Results Briefing
©2016 D.A.Consortium All rights reserved-1-
Table of Contents
Overview of Financial Results(Consolidated/Non-consolidated)
Business Trends
Key Measures
©2016 D.A.Consortium All rights reserved-2-
Overview of Consolidated Financial Results
©2016 D.A.Consortium All rights reserved-3-
FY2015-3QQuarterly
(Oct. 2015 to Dec. 2015)Accumulated
(Apr. 2015 to Dec. 2015)
Y on Y Y on Y
Sales 38,950 132.2% 103,501 119.7%
Gross Profit 5,256 120.3% 14,966 123.0%
Operating Income 1,424 174.6% 3,768 196.9%
Profit Attributable to Owners of Parent 717 152.4% 1,688 161.7%
EBITDA 1,653 160.0% 4,422 174.7%
Operating Margin* 27.1% +8.4pt 25.2% +9.4pt
Financial Highlights (Consolidated)
(Millions of Yen)
*Operating Margin=Operating Income / Gross Profit
©2016 D.A.Consortium All rights reserved
FY2015 Business Forecast Upward Revision
-4-
FY2015(Apr. 2015 to Mar. 2016)
8/4 Forecasts Revised Forecasts Differences
Sales 135,000 143,500 +8,500
Operating Income 3,550 4,400 +850
Ordinary Income 3,550 4,400 +850
Profit Attributable to Owners of Parent 1,350 1,800 +450
Net Income per Share 27.80 37.07 +9.27
(Millions of Yen)
©2016 D.A.Consortium All rights reserved
24,77623,555
27,28329,720 29,388
27,65729,456 30,960 31,674
32,875
38,950
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-5-
FY2013 FY2015FY2014
Quarterly Sales(Consolidated)(Millions of Yen)
©2016 D.A.Consortium All rights reserved-6-
29,456
38,950
+6,988
+3,555+802 △1,851
FY2014-3Q FY2015-3Q
+9.49 Billions of Yen+32.2%
DAC
irepUNITED
Increase Factor of Sales (Year on Year)
(Millions of Yen)
Elimination of internal
transactions and others
©2016 D.A.Consortium All rights reserved
3,271 3,4153,653
4,052 3,920 3,877
4,3684,234 4,335
5,374 5,256
0
1,000
2,000
3,000
4,000
5,000
6,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-7-
FY2013 FY2014 FY2015
Quarterly Gross Profit(Consolidated)(Millions of Yen)
©2016 D.A.Consortium All rights reserved-8-
FY2014-3Q Accumulated(Apr. 2014 to Dec. 2014)
FY2015-3Q Accumulated(Apr. 2015 to Dec. 2015)
Sales Sales(Millions of Yen) % Sales
(Millions of Yen) % Y on Y(%)
Internet-related Business 86,472 99.8 101,654 98.1 117.6Agent Domain 77,592 89.6 92,977 89.8 119.8Media and DAS Domain 10,628 12.3 10,079 9.7 94.8Adjustment between Domains △1,748 △2.0 △1,402 △1.4 -
Investment Business 155 0.2 1,934 1.9 x12.4TOTAL 86,628 100.0 103,588 100.0 119.6
Gross Profit Gross Profit(Millions of Yen) % Gross Profit
(Millions of Yen) % Y on Y(%)
Internet-related Business 12,054 99.1 13,082 87.4 108.5Agent Domain 7,695 63.3 9,212 61.6 119.7Media and DAS Domain 4,539 37.3 4,040 27.0 89.0Adjustment between Domains △180 △1.5 △169 △1.1 -
Investment Business 110 0.9 1,883 12.6 x16.9TOTAL 12,165 100.0 14,966 100.0 123.0
Results by Domain (Consolidated)
©2016 D.A.Consortium All rights reserved
FY2014-3Q Accumulated(Apr. 2014 to Dec. 2014)
FY2015-3Q Accumulated(Apr. 2015 to Dec. 2015)
Sales(Millions of Yen)
Share(%)
Sales(Millions of Yen)
Share(%)
Y on Y(%)
Hakuhodo DY Group 40,027 46.3 52,235 50.5 130.5
Others 46,475 53.7 51,265 49.5 110.3
TOTAL 86,502 100.0 103,501 100.0 119.7
-9-
Sales to HDY Group and Others (Consolidated)
©2016 D.A.Consortium All rights reserved
66.5
(16,465)60.8
(14,310) 59.6
(16,271) 56.5
(16,791)
58.1
(17,089) 50.3
(13,904)
52.6
(15,481) 50.1
(15,510)
50.3
(15,933)
50.5
(16,602) 48.1%
(18,730)
33.5
(8,310) 39.2
(9,244) 40.4
(11,012) 43.5
(12,929)
41.9
(12,299)49.7
(13,753)
47.4
(13,974) 49.9
(15,450)
49.7
(15,741)
49.5
(16,273) 51.9%
(20,220)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
HDYGroup
Others
-10-
FY2015FY2013 FY2014
Sales to HDY Group and Others (Consolidated)
(% / Millions of Yen)
©2016 D.A.Consortium All rights reserved
2,996 3,053 2,9963,365 3,310 3,389
3,5523,901
3,651 3,7143,832
12.1 13.0 11.0 11.3 11.3 12.3 12.1 12.6
11.5 11.3 9.8%
0
1,000
2,000
3,000
4,000
5,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
OthersPersonnelSG&A Expense Rate
2,099Number of Employees* 1,990-11-
FY2015FY2013 FY2014
Quarterly SG&A Expenses (Consolidated)
(Millions of Yen)
*Total number of directors, employees, temporary employees, etc.
©2016 D.A.Consortium All rights reserved
275 362
657 686 610
488
815
332
683
1,659
1,424 8.4 10.6
18.0 16.9 15.6
12.6
18.7
7.9
15.8
30.9 27.1%
0
500
1,000
1,500
2,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Operating Income Operating Margin
-12-
FY2015FY2013 FY2014
Quarterly Operating Income(Consolidated)
(Millions of Yen)
©2016 D.A.Consortium All rights reserved
466562
886 876803
694
1,033
556
891
1,877
1,653
0
500
1,000
1,500
2,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
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FY2015FY2013 FY2014
Quarterly EBITDA(Consolidated)
(Millions of Yen)
*EBITDA=Operating Profit + Depreciation + Amortization of goodwill
©2016 D.A.Consortium All rights reserved
FY2014(As of Mar.31, 2015)
FY2015-3Q(As of Dec.31, 2015)
Amount(Millions of Yen)
% Amount(Millions of Yen)
% Comparisons(%)
Current Assets 36,049 82.1 42,232 81.1 117.2Non-current Assets 7,848 17.9 9,862 18.9 125.7
Total Assets 43,897 100.0 52,094 100.0 118.7Current Liabilities 20,345 46.3 26,581 51.0 130.6
Non-current Liabilities 553 1.3 425 0.8 76.8
Total Liabilities 20,899 47.6 27,006 51.8 129.2Shareholdersʼ Equity 13,467 30.7 14,162 27.2 105.2
Non-controlling Interests 7,584 17.3 8,500 16.3 112.1
Others 1,946 4.4 2,426 4.7 124.6Total Net Assets 22,998 52.4 25,088 48.2 109.1Total Liabilities and Net Assets 43,897 100.0 52,094 100.0 118.7
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Balance Sheets(Consolidated)
©2016 D.A.Consortium All rights reserved
FY2015-3Q(Apr. 2015 to Dec. 2015)
Cash flows from operating activities 3,638
Cash flows from investing activities △2,870
Cash flows from financing activities 1,093Effect of exchange rate change on cash and cash equivalents △13
Net increase (decrease) in cash and cash equivalents 1,848
Cash and cash equivalents at beginning of period 11,421
Cash and cash equivalents at end of period 13,270
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Statements of Cash Flows(Consolidated)
(Millions of Yen)
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Overview of Non-consolidated Financial Results
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(※)オペレーティングマージン率=営業利益÷売上総利益
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FY2015-3QQuarterly
(Oct. 2015 to Dec. 2015)Accumulated
(Apr. 2015 to Dec. 2015)
Y on Y Y on Y
Sales 23,615 142.0% 62,076 129.5%
Gross Profit 1,988 147.8% 5,453 138.7%
Operating Income 473 255.0% 1,136 194.7%
Net Income 348 256.5% 1,147 134.3%
Operating Margin* 23.8% +10.0pt 20.8% +6.0pt
Financial Highlights (Non-consolidated)
(Millions of Yen)
*Operating Margin=Operating Income / Gross Profit
©2016 D.A.Consortium All rights reserved
1,1031,038
944
1,427
1,165
1,4191,346
1,569
1,793
1,671
1,988
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
13,02112,509
14,846
16,871
15,39515,907
16,627
18,96718,84619,614
23,615
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Sales Gross Profit
-18-
FY2013 FY2014 FY2015 FY2013 FY2014 FY2015
Quarterly Sales & Gross Profit(Non-consolidated)
(Millions of Yen) (Millions of Yen)
©2016 D.A.Consortium All rights reserved-19-
FY2014-3Q Accumulated(Apr. 2014 to Dec. 2014)
FY2015-3Q Accumulated(Apr. 2015 to Dec. 2015)
Sales Amount(Millions of Yen)
% Amount(Millions of Yen)
% Y on Y(%)
Media Service 45,792 95.5 60,039 96.7 131.1
Technology Service 1,851 3.9 1,552 2.5 83.9
Investment &Operation Service 287 0.6 484 0.8 168.7
TOTAL 47,930 100.0 62,076 100.0 129.5
Gross Profit Amount(Millions of Yen)
% Amount(Millions of Yen)
% Y on Y(%)
Media Service 2,871 73.0 4,281 78.5 149.1
Technology Service 822 20.9 733 13.4 89.2
Investment &Operation Service 237 6.0 439 8.1 185.0
TOTAL 3,931 100.0 5,453 100.0 138.7
Results by Service(Non-consolidated)
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Business Trends
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FY2014-3Q Accumulated(Apr. 2014 to Dec. 2014)
FY2015-3Q Accumulated(Apr. 2015 to Dec. 2015)
Amount(Millions of Yen)
% Amount(Millions of Yen)
% Y on Y(%)
Display 32,621 71.2 43,693 72.8 133.9
Video Ad 2,565 5.6 6,694 11.2 260.9
Others 30,056 65.6 36,998 61.6 123.1
Search 8,828 19.3 11,417 19.0 129.3
Affiliate / Reward 3,773 8.2 3,992 6.6 105.8
Others 568 1.2 937 1.6 165.1
TOTAL 45,792 100.0 60,039 100.0 131.1
Sales breakdown by Ad Format(Non-consolidated)
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9,334 8,746 10,01212,107
10,220 11,083 11,31713,854 13,463 14,170
16,059
2,309 2,288 2,680
2,599
2,986 2,804 3,037
2,964 3,061 3,295
5,059
509 491
1,225
1,116 1,351 1,005
1,417
1,125 1,272 1,271
1,448
12,399 11,868
14,194
16,14514,738 15,092
15,960
18,279 18,06418,973
23,001
0
5,000
10,000
15,000
20,000
25,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Others
Affiliate
Search
Display
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FY2015FY2013 FY2014
Quarterly Sales by Ad Format(Non-consolidated/Media Service)
(Millions of Yen)
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7,866
7,683
6,281
4,340
4,318
3,990
3,623
2,878
2,353
2,271
2,027
1,938
1,870
1,397
5,612
5,850
4,474
1,458
3,293
3,465
2,793
2,631
1,744
1,464
1,186
1,675
3,332
898
Transpotation equipment & supplies
Finance/Insurance
Commercial equipment/Office supplies
Internet information site
Transportation/Tourism/Entertainment
Foodstuffs
Cosmetics/Toiletries
Medical supplies
Beverages/Luxury foods
Department store/Trading company
Textile apparel & accessories
Real estate/Housing facilities
Telecommunications
Educational services/Universities
FY2015-3Q Accumulated
FY2014-3Q Accumulated
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(4/2015〜12/2015)
(4/2014〜12/2014)
Quarterly Sales by Client Industry(Non-consolidated/Media Service)
(Millions of Yen)
©2016 D.A.Consortium All rights reserved
14,738 15,09215,960
18,279 18,06418,973
23,001
25.2 24.3 18.9
22.8 20.4 21.7 20.0%
0
5,000
10,000
15,000
20,000
25,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q
Sales of DAC media Service (Non-consolidated)
Sales to Top100 Advertisers (Non-consolidated)
% of Sales to Top 100 in Total Sales
70 68 65 6860
70 68
0
50
100
1Q 2Q 3Q 4Q 1Q 2Q 3Q
FY2014
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FY2015 FY2014 FY2015
Quarterly Trend of Top100 Advertisers(Non-consolidated/Media Service)
*Top100Advertisers : By Nikkei Advertising Research Institute「AD SPENDING OF LEADING JAPANESE CORPORATIONS」
Quarterly Sales to Top100 Advertisers Number of Our Clientsin Top100 Advertisers
(Millions of Yen) (Companies)
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4,930 5,164 6,356
4,3448,501 8,462
9,475 10,169
11,937 12,726
15,903
19.921.9
23.325.5
28.930.6
32.2 32.8
37.738.7
40.8%
0
4,000
8,000
12,000
16,000
20,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Smart Device Ad Sales Percentage of SD Sales
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FY2015FY2013 FY2014
Quarterly Sales of Smart Device Ads(Consolidated)(Millions of Yen)
©2016 D.A.Consortium All rights reserved-26-
10,248 8,95210,365 10,286 10,735 9,460 9,386 8,778 9,905 9,751
11,276
1,524 1,623
1,904 2,238 2,521 2,731 3,087 3,611
3,673 4,305
6,260
1,435 1,230
1,642 1,843 2,466
2,237 2,557 2,471 3,249 2,947
3,542
13,22411,817
13,933 14,39215,763
14,463 15,070 14,90216,866 17,050
21,130
53.4 50.2
51.1 48.4
53.6 52.3 51.2 48.1
53.3 51.9 54.2%
0
5,000
10,000
15,000
20,000
25,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
DMPDisplay NetworkRTB and OthersSearch% in Total Sales
FY2015FY2014FY2013
Quarterly Sales of Programmatic Ads(Consolidated)
(Millions of Yen)
©2016 D.A.Consortium All rights reserved
Sales OperatingIncome
IREP Co., Ltd.
UNITED, Inc.
HAKUHODO i-studio Inc.
Platform One Inc.
ADPRO inc.
Torchlight Inc.
Bumblebee Inc.
D.A.Consortium Beijing CO., LTD.
DAC ASIA PTE. LTD.
Agent DAS
Media
Agent
Agent
Agent
Agent
Agent
Agent
DAS
Media
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DAS
DAS
Summary of Consolidated Subsidiariesʼ Results(Y on Y)
©2016 D.A.Consortium All rights reserved
1.87
2.50
1.80
3.28
2.10
1.67
3.32
2.35
0.0
1.0
2.0
3.0
4.0
Sales Operating Income Ordinary Income
FY2013-3Q Accumulated FY2014-3Q Accumulated FY2015-3Q Accumulated
N/A
(4/2014〜12/2014)(4/2013〜12/2013) (4/2015〜12/2015)
-28-
Consolidated/Non-consolidated Ratio
©2016 D.A.Consortium All rights reserved-29-
Key Measures
©2016 D.A.Consortium All rights reserved
FY2013 FY2014 FY2015
x2.1
-30-
Focus Area Premium Media Ad Sales
Quarterly Sales of Premium Media Ads(Non-consolidated)
©2016 D.A.Consortium All rights reserved
FY2013
FY20131,735 Mil.¥
FY2014 FY2015
x2.6
FY20144,252 Mil.¥
FY20156,695 Mil.¥
-31-
Video Ad SalesFocus Area
Quarterly Sales of Video Ads(Non-consolidated)
(Millions of Yen)
©2016 D.A.Consortium All rights reserved
Quarterly Share by Video Ad Products
FY2014 FY2015
Diversification of Video Ad Products
-32-
Focus Area
©2016 D.A.Consortium All rights reserved-33-
Appendix
©2016 D.A.Consortium All rights reserved
Business Domains of DAC Group
Agent Domain
DAS Domain Media DomainProviding services to
consumersProviding technologies, creative and solutions
-34-
Dealing with Media and Ad Agencies
©2016 D.A.Consortium All rights reserved
Business Model of DAC GroupAd
vert
iser
s
Use
rs
-35-
Media Representative and Digital Solutions
RTB
DMP
Ad Network
Global
SEM services
Creative Social media marketing
Media Service Buying and selling ad space Development
Operation Service Outsourcing business
Technology Service Solution development/provisioningR&D
Progress management
Trading Desk
Onl
ine
Publ
ishe
rs
Ad A
genc
ies
©2016 D.A.Consortium All rights reserved
OnlinePublishers
ConsortiumDAC was established as a consortium of
leading ad agencies, headed by Hakuhodo DY Group
Media RepresentativeProviding total support for
online advertising
Adve
rtis
ers
<Core Operations>• Buying Ad Spaces• Media Planning• Progress Management• Consulting• Development Technologies• Operation Service
Media Rep.
DACʼs Core Business “Media Representative”
SellingAd Spaces
ProvidingAd Technologies
ProvidingOperation service
BuyingAd Spaces
ProvidingAd Technologies
ProvidingOperation Service
Ad AgencyHakuhodo DY
Media Partners Inc.TOKYU AGENCY INC.
Nikkeisha, Inc.I&S BBDO Inc.
Asahi Advertising Inc.CyberAgent, Inc
SEPTENI CO.,LTD.etc.
Over 500Companies
Over 1,000Companies
Yahoo! JAPANLINE
GoogleFacebookYouTubeTwitter
NIKKEI.comMSNetc.
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+
©2016 D.A.Consortium All rights reserved
Adve
rtis
ers/
Ad A
genc
ies
Publ
ishe
rs
DSP
Analytics
Ad ServerSSP
Ad Network
3PAS/Rich Media Ad Serving System
Media Planning System
PublisherTools
Message Management Tool
Delivery Data
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Ad technology lineup of DAC Group
Data DMP/Tag Management System
©2016 D.A.Consortium All rights reserved
Name Ownership Business
IREP Co., Ltd. 57.6% Digital marketing including performance-based ad focused on listing ads, search engine optimization, content marketing and web analytics.
UNITED, Inc. 44.1% Smartphone applications and advertising technology business.
HAKUHODO i-studio Inc. 60.0% Production, system development and CRM services for the entire online advertising field.
Platform One Inc. 100.0% Providing platforms for online advertising trading.
ADPRO inc. 100.0% Operational services for online advertising, including schedule management, sending ad data and placement confirmation.
Torchlight Inc. 70.0% Services supporting the utilization of social media including owned media and ad.
Bumblebee Inc. 89.8% Media and advertising platform business including smartphone applications.
D.A.Consortium Beijing CO., LTD. 50.1% Online advertising business in China.
DAC ASIA PTE. LTD. 100.0%Supports online advertising strategy, business development, market research and the expansion of group companies in the Southeast Asian region.
I-DAC PTE. LTD. 80.0% Comprehensive digital marketing solution in the Southeast Asian region.
Consolidated Subsidiaries(As of December,2015)
TSE 2nd
Mothers
-38-
©2016 D.A.Consortium All rights reserved
Name Ownership Business
Members Co., Ltd. 18.8% Web integration service, social media marketing service, and support service of digital marketing.
spicebox, inc. 34.4% Marketing and consultation services for digital communications design.
Adinnovation Inc. 18.0% Marketing business for smartphones, ad tracking tool business for smartphones, media consulting business.
digitalBoutique, Inc. 38.2% Service planning, creating, and operating community sites.
livepass Inc. 22.4% Next generation personal video marketing platform company.
Innity Corporation Berhad 25.1% Online advertising trading platform and advertising network in the
Southeast Asian region.
GLIDER associates, INC. 15.7% Planning and administration of curation magazine “antenna*”.
Equity-method Affiliates(As of December,2015)
Centrex
Bursa Malaysia
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©2016 D.A.Consortium All rights reserved
Name Business
Digital Catapult Inc. Provides digital content-serving and creative services for PC and mobile.
Data Stadium Inc. Sports data contents and related solutions.
Video Research Interactive Inc. Internet audience measurements and provides ad servers.
BrandXing Inc. Marketing and CRM consulting services.
O-uccino, Inc. Ad agency, planning, creating, and operating real estate websites.
Voltage Inc. Planning and creating services for mobile digital contents.
mediba Inc. As a mobile media representative, provides planning, organization and creation services.
YUMEMI Inc. Mobile-related planning, development, operation and consultation services.
Co-Core Inc. Operating the 3-D visual space website "meet-me“.
ALBERT Inc. “Recommendation engine” developed in-house and advertising optimization solutions using core analytical abilities.
Origami Inc. Planning and administration of the next-generation e-commerce platform “Origami”.
Datasection Inc. Online consumer and reputation analysis service.
Yummy Japan Inc. YouTube channel management, web-based video production, web-based PR and advertising.
ZEDO,Inc. Developing ad server and video ad format for media companies.
IPONWEB HoldingsLimited
Development of various ad technologies and cloud advertisement solution and consulting service.
Other companies in which DAC invests(As of December,2015)
TSE 1st
Mothers
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Mothers
Mothers
©2016 D.A.Consortium All rights reserved
Vision of DAC Group
-41-
“The Axel”This logo, called “the axel”, expresses the spiritembodied in our brand slogan “Empowering the digital future” – the spirit to pioneer and impart vitality into the future of digital society.