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Dentsu to Strengthen Its Digital Solutions Development and Management Structure Targeting the Japanese Market through the Establishment of New Company DENTSU TECHNO CAMP in Vietnam

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March 24, 2017

Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; Representative Director and Senior Executive Vice President: Shoichi Nakamoto; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today that it will strengthen and expand its solutions development and management structure in the digital marketing domain targeting the Japanese market through a joint investment with EVOLABLE ASIA CO., LTD., in Vietnam (Head Office: Ho Chi Minh City; CEO: Sul Yoosa; hereinafter "EVOLABLE ASIA") to establish a new company in Vietnam, DENTSU TECHNO CAMP CO., LTD. (Head Office: Ho Chi Minh City; hereinafter "DENTSU TECHNO CAMP"), which will commence operations on April 1, 2017.

Behind the establishment of this new company is an increase in business in the digital marketing domain, a growth market. Also, there are concerns over the dwindling number of programmers, system engineers and other developers in the Japan market, which continues to experience a declining birthrate and aging population, making the retention of human resources an issue. Having become familiar with the latest digital technologies, there have been discussions about the necessity of an organization able to efficiently and stably support the development and management of a wide variety of solutions. Specifically, in response to the increasing need for website, system, smartphone app and other solutions, the strengthening and expansion of service operations integrating service design, screen specification creation and design, coding, image processing, verification and other offerings is an urgent task.

Dentsu aims to strengthen the digital marketing domain, while EVOLABLE ASIA, already engaged in the IT offshore development service business in Vietnam, aims to further expand its operations. The concurrence of these plans led to the establishment of this joint venture, which will provide both participants with mutual know-how and resources.

Going forward, the Dentsu Group will strengthen its competitiveness in the digital marketing domain, strive to provide high added value services and accelerate its growth strategy through its alliance with new company DENTSU TECHNO CAMP and EVOLABLE ASIA.

The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2017 is expected to be minimal.

Company Name:           DENTSU TECHNO CAMP CO., LTD
Headquarters Location:    9F Saigon Finance Center, 9 Dinh Tien Hoang Street, District 1, HCMC
Date of Establishment:    March 15, 2017
Start Date:    April 1, 2017
Capitalization:     \0.2 billion (Dentsu 90%, EVOLABLE ASIA 10%)
Representative:         Yuichi Arai, General Director & CEO
(current) Director, Integrated Digital Marketing Division, Dentsu Inc.
Line of Business:           Solutions development management and other software development operations in the digital marketing domain




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