Dentsu CEO Hiroshi Igarashi said the company will see organic growth of four percent and an operating margin of 16-17 percent by 2027.
Igarashi said the company's new "One Dentsu" operating model will be central to the margin improvements.
"Under One dentsu, we will return to a growth trajectory in FY2027," Igarashi's earnings release said.
The release said Dentsu's Japanese business "performed very well" in 2024, but that its "M & A growth strategy" internationally has resulted in an "organization (that) has become more complex and siloed, with high cost structures."
"Recent acquisitions tend to be below expectations due to unrealized synergies," Igarashi's release said.
Igarashi says he will reduce operating costs by as much as $330 million by 2027, integrating the company's Tokyo and London headquarters functions, automating more with artificial intellgence and by doing more outsourcing.
The company's net revenue grew 5.7 percent in 2024.
"Japan as a Cutting-edge market"
Igarashi is also promising to prioritize growth by offering clients more sevices in Japan and the U.S., or "large-scale markets with an abundance of business assets."
In Japan, in particular, Igarishi believes the company can grow its "significant competitive advantage in marketing... and seize business opportunities throughout our whole clients' value chains."
Dentsu will "position Japan as a cutting-edge market to drive (integrated growth solutions) differentiation through unique value creation," the release said.
Japan was 40 percent of net revenue for Dentsu, versus 29 percent for the Americas, 22 percent for EMEA and nine percent for APAC, minus Japan.
Last week, Igarashi cited sales growth as a priority in naming former VMLY&R Commerce and Kantar Consulting CEO Beth Ann Kaminkow as CEO of Dentsu North America.
"Beth Ann... has considerable experience and success in not only creating captivating and innovative offerings for clients, but leading teams to growth,” he said. "The appetite for integrated growth solutions in (the U.S.) is considerable.
In 2024, Dentsu added new clients Samsung Electronics Japan, Iowa-based Principal Financial Group, Choice Hotels and make-up brand Kiko Milano.
Last month, Pandora, the world's largest jewelry brand, announced it would consolidate its global media account with Dentsu.
Dentsu now represents Pandora in the U.S., Canada, Australia and in major European markets, including the UK, France, Italy, Germany, Spain and Poland.'
In India, Dentsu says it grew media billings 10 percent in 2024, citing 400 percent growth in "branded content, influencer marketing, gaming, and sports."