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dentsu group NEWS RELEASE FOR IMMEDIATE RELEASE August 11 , 2021 DENTSU GROUP INC . Group Corporate Communications Office 1-8-1 , Higashi - shimbashi , Minato - ku , Tokyo 105-7050 , Japan https://www.group.dentsu.com/en/ Dentsu Group Inc. Q2 FY2021 Consolidated Financial Results ( The second quarter ending June 30 , 2021 - reported on an IFRS basis ) Q2 FY2021 organic revenue growth saw a significant rebound in performance , at 15.0 % , with 12.0 % at Dentsu Japan Network and 17.0 % at Dentsu International , showing strong sequential improvement over Q1 decline of 2.4 % . As we pass the anniversary of the start of the pandemic , revenues continue to recover across all regions with strong growth in digital solutions . Client confidence is restoring with spending levels more resilient and predictable . Operating margin improvement continues to exceed expectation , substantially ahead of the prior year , with Q2 improving +370 bp yoy , showing the gearing effect of higher revenue together with cost reductions being implemented . The acquisition of LiveArea , announced in July , strengthens the Group expertise in the fast growth areas of consumer experience and commerce and aligns with the Group's ambition of reaching 50 % of revenues less cost of sales ( LCOS ) generated by Customer Transformation & Technology . The Group expects high single digit organic growth for FY2021 , with a line of sight to delivering the long held 2022 margin targets of 20 % for Dentsu Japan Network and 15 % for Dentsu International one year early , implying a Group margin improvement of +160 bp yoy . FY2021 forecasts are made in the context of a variable economic outlook as the effects of the pandemic remain unpredictable in a number of markets . FY2021 annual dividend per share confirmed at JPY 101.0 ( interim dividend JPY 50.5 ) , a record high , at a 30 % payout ratio for FY2021 ; in line with the Group's progressive dividend policy , to reach 35 % over time . The Group remains well positioned to benefit from the recovery in media & digital solutions spend and the structural growth in Customer Transformation & Technology . Q2 ( April to June ) FY2021 Financial Results Summary Consolidated Group ( million yen ) Revenue Revenue less cost of sales * * See page 10 for definitions Q2 FY2021 Q2 FY2020 YoY chg , % 243,863 206,344 +18.2 218,091 181,697 +20.0 Underlying results * • operating profit 26,614 15,509 +71.6 • operating margin 12.2 % 8.5 % +370 bp • net profit ( attributable to owners of the parent ) 16,029 7,945 +101.7 Statutory results operating profit 55,569 4,051 +1,271.6 • net profit ( attributable to owners of the parent ) 31,219 438 +7,016.4 1