Members of the Press
May 9, 2014
Hakuhodo DY Holdings Inc.

Hakuhodo DY Holdings creates new strategic operating unit named "kyu" and acquires US companies SYPartners and Red Peak Group

Hakuhodo DY Holdings Inc. (Minato-ku, Tokyo; Hirokazu Toda, President & CEO) has created a new strategic operating unit, kyu, to ensure continuous enhancement of specialization and innovation in the Hakuhodo DY Group, something that has been identified as one of three growth drivers in the Groupʼs new Medium-Term Business Plan (see Note 1 on page 3). The new unit has acquired a 100% interest in US-based companies SYPartners and Red Peak Group.
Digitalization and globalization have made marketing as a profession more complex and sophisticated̶spurring innovation in both methods and approaches. To respond to these changes, the Hakuhodo DY Group has put forward, as a key driver of growth in its new Medium-Term Business Plan, the acquisition of leading service
companies that offer advanced marketing methods and solutions. The new unit, kyu, will have the task of continuously enhancing expertise, specialization and innovation in the Group and driving the Groupʼs growth by conducting M&A principally in North America and Europe - markets that have over time produced many unique and advanced firms - as well as major Asian markets.

kyu, which will take the form of a strategic operating unit, will be positioned parallel to the Hakuhodo DY Groupʼs three advertising operating companies (Hakuhodo Group, Daiko Group and Yomiko Group) and integrated media company (Hakuhodo DY Media Partners Group). In addition to managing and controlling the specialized marketing service companies under its umbrella, kyu will be charged with nurturing each companyʼs management talent, developing their capabilities, and supporting and promoting innovation through collaboration and cooperation. The post of CEO of kyu will be formally filled by Michael Birkin (see Note 2 on page 3) on July 1, 2014. Birkin will also assume the office of Senior Executive Corporate Officer of Hakuhodo DY Holdings Inc. on the same date.

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Established in the United States in 1994, SYPartners is a firm with studios in San Francisco and New York. SYPartners Consulting has a 20-year track record of working with leaders of some of the worldʼs most influential companies. The firm helps CEOs and senior management build great companies by focusing on vision and strategy; culture building; and customer experiences. SYPartners has in recent years introduced SY Products - a division of SY Partners that is dedicated to creating products and services from the companyʼs intellectual capital. Teamworks and Unstuck (see footnote) are the first two services released under SY Products.
Red Peak Group is a specialized marketing services company established by Birkin in the US in 2009. The company currently has offices in New York, Los Angeles, Nashville, London, Rio de Janeiro and Taipei, and operates through the brands Red Peak Branding and RPMC. Red Peak Branding, which has high-level specialist expertise in the areas of design and branding, offers integrated consultation on brand strategy development; research; and naming, packaging and advertising production. RPMC offers a wide range of advanced experiential services in the world of sports and music. The firm is a global leader in sponsorship support, hospitality programs and a variety of other promotional services.
The Hakuhodo DY Group, through kyu, will continuously enhance specialization and innovation in the Group in order to realize the core mid-term strategy in the Groupʼs new Medium-Term Business Plan. This is: With our mission of serving as the best marketing partner for each one of our clients, the Hakuhodo DY Group stands as one of the worldʼs top advertising and marketing services groups. Our cutting-edge creative ideas and integrated marketing solutions create new markets, trends and movements that engage sei-katsu-sha (see Note 3 on page 3) and invigorate society. This will also contribute to the growth of our international operations and financial results over the medium term.
The impact of the acquisitions of SYPartners and Red Peak Group on the Hakuhodo DY Groupʼs consolidated performance in the year ending March 31, 2015 will be small relative to the Groupʼs size.

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Note 1: The three growth drivers identified in the Hakuhodo DY Groupʼs 2014 Medium-Term Business Plan (1) Strengthening of sei-katsu-sha data-driven marketing response capabilities, (2) strengthening of business structures in emerging markets, particularly in Asia, (3) continuous enhancement of specialization and innovation

Note 2: Biography of Michael Birkin

Born in 1958 in the United Kingdom, he became CEO of Interbrand Group in 1986, a position he retained until the sale of the company to Omnicom in 1993 (the company has been part of Omnicom ever since). He was President of DAS Worldwide (the largest division of Omnicom) from 1999 until 2005. He subsequently filled the role of Omnicom Group Vice Chairman and CEO Asia Pacific from 2005 until 2009. He left Omnicom in 2009 to establish Red Peak Group, taking up the post of Chairman.

Note 3: Sei-katsu-sha means more than simply a consumer of goods and services; the term expresses the holistic person̶an individual with a lifestyle, aspirations and dreams. Sei-katsu-sha insight provides an understanding of the individual as a whole person and exposes changes in values and desires that are central to the person. All of our work at the Hakuhodo DY group follows from sei-katsu-sha insight. It is the heart of our competitive advantage.

About SYPartners

Company name: SYPartners LLC Headquarters: California, USA Established: 1994

Senior management: Chairman: Keith Yamashita, CEO: Susan Schuman

Employees: 110

Business: Innovation and transformation consulting for CEOʼs and their leadership teams - focusing on corporate vision and strategy; culture-building; and transformational customer experiences.

SY Products creates products for behavior-change.

1. Teamworks (www.teamworks.is) is a set of web-based tools and advice to help managers keep their teams more connected and aligned to achieve new levels of engagement and performance.

2. Unstuck (www.unstuck.com) is a suite of advice tools and an app aimed to help individuals live their best lives.

Key clients: AARP, American Express, Bloomberg, eBay, General Electric, IBM, Starbucks, The Coca-Cola Company

URL: http://www.sypartners.com/

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About Red Peak Group

Company name: Red Peak Group LLC Headquarters: New York, USA Established: 2009

Senior management: Founder/Chairman: Michael Birkin

Employees: 80

Red Peak Branding

Senior management: CEO: James Fox, CCO: Stewart Devlin

Business: Integrated and transformational consulting services in the areas of design and branding. Red Peak Branding has also established Red Peak Youth (RPY) to help marketers better connect with Millennials and lead thinking in this area.

Key clients: Acer, Intel, Gannett

URL: http://www.redpeakgroup.com/

http :// www.redpeakyouth.com/

RPMC

Senior management: CEO RPMC Europe: Stephen Hall; Executive Vice President USA: Kelly Weinberg

Business: Advanced experiential services in the world of sports and music. The firm is a global leader in sponsorship support and hospitality programs and a variety of other promotional services.

Key clients: AB InBev, Emirates, McDonaldʼs, Amgen, Discovery Networks, Dun & Bradstreet

URL: http://rpmc.com/

Contacts:
Group PR & IR Div., Hakuhodo DY Holdings Inc. K. Fujii, C. Nishio: Tel: +81-(0)3-6441-9062
KEITA.FUJII@hakuhodo.co.jp
CHIE.NISHIO@hakuhodo.co.jp

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