GROUP TAX MISSION STATEMENTAND STRATEGYYear ended 31 December 2023

CONTENTS
INTRODUCTION

3

TAX MISSION STATEMENT4TAX STRATEGY

5FURTHER DETAILS ON THE 3 TAX PILLARS:TAX COMPLIANCE

7-10

TAX RISK MANAGEMENT

11-12

TAX OPTIMISATION

13-15

INTRODUCTION
The Dentsu group operates globally in a dynamic, fast changing industry with significant M&A activity.
We are committed to:•complying with the domestic tax legislation and all relevant international based tax requirements
for all countries in which we operate, including the OECD transfer pricing guidelines and BaseErosion and Profit Shifting (“BEPS”) regulations; and•Paying the appropriate and fair amount of taxes in respect of the activities undertaken in therelevant country.

As a responsible international group we are committed to complying with the spirit of the tax law and
do not seek to implement artificial tax planning. Furthermore, the Group does not utilize tax havens toreduce its tax liabilities.

3TAX MISSION STATEMENT
To pay the right amount of tax at the right time in the right place whilst being consistent with ourbusiness strategy, operations, corporate values and social responsibilities, and retaining andadding value for the Group by optimizing our tax position.

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TAX STRATEGY
The three pillars of our tax strategy are tax compliance, tax risk management andensuring that we optimise the group’s tax position.

TAX COMPLIANCETAX RISK MANAGEMENTTAX OPTIMISATION• We will comply with all of our statutory tax
obligations, in respect of all tax filings and tax
payments, in a timely manner to ensure tax
fairness in each of the countries in which weoperate.

• We will manage the tax risks associated with therapidly changing global tax environment.

• We will efficiently manage the tax cost, including theEffective Tax Rate and cash taxes, as well as tax
processes of our group.
• Our commercial business strategy of providing acomprehensive global network that supports clients’businesses around the globe is the priority but weneed to ensure that our operations are effected in as
tax efficient a manner as possible.
• We will work together with our commercial teams,
clients and other stakeholders to ensure that ouroperating models are tax efficient and compliant.
• As an international group, transfer pricing rules arerelevant to us. The Group seeks to ensure intercompany transactions take place on an arm’s length
basis and the Group will not seek to transfer value or
shift profits to low tax jurisdictions without businesssubstance and there are business driven reasons.

• We will act at all times in accordance with allapplicable local tax laws and relevantinternational tax standards.
• Our tax disclosures will be reported
accurately and appropriately.
• We will build honest and open working
relationships with tax authorities by dealingwith each country's tax authority requests andproviding appropriate information in a timely
and transparent manner.

• We will manage the global reputation of thegroup from a tax perspective, communicatingwith stakeholders, as necessary, to ensure thatthey understand the group’s position.
• We will ensure that all our people who manage
the group’s tax processes have the requisite
skills and develop professionally5

FURTHER DETAILS ON
THE 3 TAX PILLARS

6

TAX COMPLIANCE
We are committed to complying with the relevant tax regulations in eachjurisdiction, tax treaties and multilateral agreements and fulfilling ourtax obligations in all countries and regions where the Group and its
group companies operate. We will properly fulfil our tax reporting andtax payment obligations based on an understanding of the legislative
intent to ensure tax fairness.
We comply with all our statutory obligations, in respect of all
tax filings and tax payments, in a timely manner• We prepare and submit all required tax returns and other filings by thelocal statutory deadline.
• We make all payments of tax, including corporation tax, employment taxes,
VAT/GST and all indirect taxes, state and local taxes, stamp taxes and allother taxes, in line with local requirements.
• If there are any areas of uncertainty, we take appropriate third party tax
advice to reach a conclusion and, where necessary, will seek clarification
with the relevant tax authority.

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TAX COMPLIANCE
All our companies have local statutory tax obligations and we ensurethat these are met

We act at all times in accordance with all applicable laws
and relevant international standards, which applies in all
countries where we operate• We take appropriate third party tax advice if there are areas of uncertainty.
• Our aim is to pay the right amount of tax on the profits we make in thecountries where we create the value that generates those profits.
• We keep abreast of international tax developments to ensure that we aretax compliant in every country where we operate.

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TAX COMPLIANCE
All our companies have local statutory tax obligations and we ensurethat these are met

Our tax disclosures are reported accurately
and appropriately• We report our group disclosures under International Financial
Reporting Standards and all required local statutory accounts
under appropriate local Generally Accepted Accounting Principles.
• We ensure that our tax disclosures have sufficient detail to assist
the reader in their understanding.
• We have a robust tax accounting process in place with a number ofinternal controls to prepare our tax disclosures.
• We discuss any tax accounting areas of uncertainly with our audit
team on a timely basis.

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TAX COMPLIANCE
All our companies have local statutory tax obligations and we ensurethat these are met

We will build honest and open working relationships with tax authorities by dealing witheach country's tax authority requests and providing appropriate information in a timely
and transparent manner• We want to agree our tax liabilities with local tax authorities in a transparent, constructive and open way.
• Where appropriate (depending on the jurisdiction), we will attempt to agree any areas of uncertainty with tax
authorities before submitting the relevant tax return• In certain jurisdictions where it is appropriate and an accepted practice, we will help contribute togovernment consultations on tax matters within the context of shaping sustainable tax policies which are fairand balanced to all stakeholders.

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TAX RISK MANAGEMENT
Tax is a complex area for multinational groups and we supervise and manage our tax
processes to ensure that we meet our statutory obligations and have no surprises.
We will manage the tax risks associated with the rapidlychanging global tax environment. We will manage the global
reputation of the group from a tax perspective, communicatingwith stakeholders, as necessary, to ensure that they understandthe group’s position• We have appropriate and robust Tax and Transfer Pricing policies in place. Theseseek to give guidance and clarity to our in-country operations on fulfilling their taxobligations. This includes setting out the key controls to be tax compliant andminimise tax risk and any unintended tax non-compliance.
• Responsibility for the management of tax risks rests ultimately with the group
CFO, a Group Director, who is responsible for establishing and maintaining thetax governance framework, which is part of the group’s governance processes tomanage all group risks. This ensures that the board of directors are aware of any
tax risks and that they are appropriately managed.
• The group has well established governance processes in place to ensure that theappropriate issues are considered at all levels in respect of all tax risks, including
M&A related issues.
• For acquisition activity, we have embedded approval mechanisms in place,depending on the level of risk.
• We ensure that there is excellent communication between the internal teams
involved such that the appropriate teams are aware of their responsibilities andhave full knowledge of the facts.

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TAX RISK MANAGEMENT
Tax is a complex area for multinational groups and we supervise and manage our tax
processes to ensure that we meet our statutory obligations and have no surprises

We ensure that all our people who manage the group’s
tax processes have the requisite skills• There is a Group Tax function based in Japan and the UK and, inaddition, we have tax qualified personnel in the majority of our key
markets. All of the members of the central and local tax teams havethe required skills, experience and, where necessary, training tocarry out their tax responsibilities.
• Members of the tax team keep up to date with tax developments byattending tax update webcasts, training sessions and tax
conferences.
• We provide tax support and appropriate training to finance teammembers to carry out tax tasks in line with the Group Tax Policies.
Where necessary, we take appropriate third party advice to support
the business needs.

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TAX OPTIMISATION
We will not seek to effect aggressive tax planning schemes; however, where
there are alternative ways to effect transactions, we will choose the most tax
efficient

We efficiently manage the tax cost, including thegroup’s Effective Tax Rate and cash taxes, as well as
the tax processes of our group• We shall never engage in tax evasion.
• We will not use tax havens unless there are commercial reasons toestablish business operations in that jurisdiction.
• We will not effect tax planning without any business purpose or economicsubstance.
• We actively manage the cash position of the group. This includes the cash
tax position of the group, especially making tax payments on time.

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TAX OPTIMISATION
We will not seek to effect aggressive tax planning schemes; however, where
there are alternative ways to effect transactions, we will choose the most tax
efficient

Our commercial business strategy of providing acomprehensive global network that supports clients’businesses around the globe is the priority but we needto ensure that our operations are effected in as tax
efficient a manner as possible• We will only carry out planning, including restructuring andrationalisation of group entities, where there is a clear
underlying commercial (non-tax) objective.
• We will work with all stakeholders to understand theircommercial drivers and propose the most tax-efficient ways ofeffecting solutions.

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TAX OPTIMISATION
We will not seek to effect aggressive tax planning schemes; however, where
there are alternative ways to effect transactions, we will choose the most tax
efficient

We will work together with our commercial teams, clients and other stakeholders toensure that our operating models are tax efficient and compliant• Our commercial teams use a number of operating models to provide the best services and solutions to ourclients and we will work together with these internal teams to understand the commercial transactions andcontracts, to minimise any tax risks and to ensure tax compliance.

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