Results Meeting for Fiscal Year 2006 (April 1, 2006 March 31, 2007) May 22nd, 2007 Nippon Television Network Corporation

Transcription

1 Results Meeting for Fiscal Year 2006 (April 1, 2006 March 31, 2007) May 22nd, 2007 Nippon Television Network Corporation

2 Statements made in this presentation with respect to NTV' s current plans, strategies and beliefs as well as other statements that are not historical facts are forward-looking statements. Such forward-looking statements are based on management' s assumptions and beliefs in light of the information currently available to it. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. We do not intend to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable laws.

3 3 Table of Contents Financial highlights (Consolidated)... P 4 Financial highlights (Non-consolidated)... P 06 Spot sales (Non-consolidated)... P 08 Forecast for FY P 12 Programming reforms... P 15

4 4 Highlights of Operating Results (Consolidated) NTV, a non-consolidated company, increased both sales and profits. VAP had excellent DVD sales, such as DEATH NOTE, and increased profit; however, total net sales slightly decreased due to fewer volume of CD sales. Recurring profit and net income margin increased due to non-operating revenue and fewer extraordinary loss. Net sales Operating income Recurring profit Net income FY ,642 28,551 30,014 13,700 (Unit : Millions of yen) FY 2006 % 343, , , ,

5 5 Cash Flow (Consolidated) (Unit : Millions of yen) FY 2005 FY 2006 Cash flow from operating activities 32,683 31,457 Cash flow from investing activities 24,358 24,596 Cash flow from financing activities Cash and equivalents at the end of March 31, ,920 59,368 4,713 61,523

6 6 Highlights of Operating Results (Non-consolidated) Net sales increased due to favorable sales of Events/Content business, such as movie and media commerce. Controlling programming costs led profit to increase. (Unit : Millions of yen) FY 2005 FY 2006 % Net sales 287, , Operating income 18,450 20, Recurring profit 20,146 23, Net income 8,001 12,

7 TV Broadcasting Sales (Non-consolidated) Time sales Spot sales (Unit : Millions of yen) 300,000 Million FY 2005 FY 2006 Decrease % 250,000 Total 255, ,524 8, Time sales 141, ,219 3, ,000 Spot sales 113, ,305 5, ,000 (Unit : Millions of yen) 100,000 FY 2005 (Oct. Mar.) FY 2006 (Oct. Mar.) Decrease % Total 127, ,076 2, ,000 Time sales 71,568 70,249 1, Spot sales 56,055 54,827 1, FY 2005 FY

8 8 Spot Sales by Industry ( FY2006 ) 120,000 Million 105,000 Automobile Automobile Share 8.85 % 1.3 Electronic equipment Electronic equipment ,000 Cosmetics/ Toiletries Cosmetics/Toiletries ,000 Transportation/ Telecommunications Transportation/ Telecommunications ,000 Finance Non-Alcohol Alcohol Finance ,000 Pharmaceutical Non-alcohol ,000 Sports / Hobby goods Pharmaceutical Sports / Hobby goods ,000 0 FY 2005 FY 2006 Box-office / Entertainmemt Other Box-office / Entertainment Other Total

9 Spot Sales by Industry ( Oct Mar.2007 ) 60,000 Share % Million Automobile Automobile Electronic equipment Electronic equipment ,000 Transportation/ Telecommunication Cosmetics/ Toiletries Transportation/ Telecommunications Cosmetics/Toiletries Alcohol 30,000 Finance Pharmaceutical Alcohol Finance Sports / Hobby goods Pharmaceutical ,000 Non-alcohol Sports / Hobby goods Non-alcohol Service Service Other Other Total Oct.'05-Mar.'06 Oct.'06-Mar.'07 9

10 10 Events / Content Business Sales ( Non-consolidated ) Apr.-Sep. Oct.-Mar. 30,000 Million 25,000 (Unit : Millions of yen) 20,000 Total FY ,484 FY ,216 Increase 9,732 % ,000 10,000 (Unit : Millions of yen) 5,000 FY2005 (Oct-Mar) FY2006 (Oct-Mar) Increase % 0 FY 2005 FY 2006 Total 9,065 15,353 6,

11 11 Production costs (Non-consolidated) Apr.-Sep. Oct.-Dec. 120,000 Million (Unit : Millions of yen) 90,000 FY2005 FY2006 Decrease % Total 112, ,644 2, ,000 (Unit : Millions of yen) 30,000 FY2005 (Oct-Mar) FY2006 (Oct-Mar) Decrease % 0 FY 2005 FY 2006 Total 56,116 54,877 1,

12 12 Forecast for FY2007 (Unit : Millions of yen) Interim Net sales Operating income Recurring profit Net income Consolidated 161,500 7,000 8,500 4,000 Non-consolidated 137,000 2,500 4,000 2,000 (Unit : Millions of yen) Fiscal year Net sales Operating income Recurring profit Net income Consolidated 335,500 18,500 21,500 11,500 Non-consolidated 287,000 10,500 12,500 7,000

13 13 (Ref.) Forecast for CAPEX and Depreciation Consolidated FY2007 Non-consolidated FY2007 FY2008 FY2009 FY2010 FY2011 CAPEX 6.8 CAPEX (Unit : Billions of yen) Depreciation 12.6 (Unit : Billions of yen) Depreciation

14 14 Programming Programming reforms Create programming schedule that will gain high viewer ratings and increase profitability through four major reforms within two years. *October 2006 Introduced News ZERO in 23:00 time slot *April 2007 Golden and Prime time slots Changing 36% of Prime time slots *October 2007 Non-prime time slots *April 2008 Prime and Golden time slots (part 2), Supplement all time slots

15 15 Programming reforms (overview of April reforms) Successful strengthening of prime time slots Saturday 19:00 "Tensai! Shimura Zoo" and Sunday 20:00 "Sekai no Hatemade Itte Q" Dramas "Bambino! " and "Kui-Tan2" are earning favorable viewer ratings. New variety programs Firmly establish viewership through stronger PR strategy. Strategic holiday week Broadcast of special programs and steady ratings of regular programs during April 30 to May 6 (Japanese holiday week) Earned quadruple crown title for viewer ratings

16 Programming strategy October reforms: non-prime time slots Overhaul of weekday across-the-board programming Improve flow of viewer ratings on weekend mornings and afternoons Strengthen "News ZERO" in 23:00 time slot Shore up weakness of prime time To delete programs with single-digit viewer ratings New challenges *Sports September Rugby World Cup 2007 October Pro Baseball game CLIMAX SERIES" December FIFA Club World Cup Japan presented by TOYOTA * 24-Hour Television Special programs for its 30 th anniversary *Create new media value Coordination of "1-SEG" with regular programs 16

17 17 Movie business Success of "DEATH NOTE Generate maximum revenue through multiuse of movies, terrestrial broadcasting, DVDs and program sales overseas Movie DEATH NOTE Prequel and sequel box-office revenue totaling over 8 billion yen Just four months after its movie release, DEATH NOTE prequel shown on terrestrial broadcasting earned viewer rating of 24.5% Sales of DVDs from VAP about 1 million copies Flood of overseas offers, especially from Asian countries Main lineup for FY2007 Tokyo Tower From Apr. 14 Maiko Haaaan!!! From Jun. 16 ALWAYS- Sunset on Third Street Ⅱ From Nov. 3 Mari to Koinu no Monogatari From December L (DEATH DEATH NOTE spin-off off) From January

18 18 Media commerce business (Millions of yen) Media commerce sales FY2005 FY2006 Sales from non-consolidated media commerce business (FY2006) Sales 5.7 billion yen (triple increase) Well thought-out out strategy to sell popular program-related related merchandise led to sales increase. *In-demand items: Tenten belt, Cowboy Little, BOJOBO Wishing Doll, HAMANO s bag and NINTENDO DS Lite Increase of program airtime to improve visibility RADICUL POSHLET Five time slots per week POSHLET Depato Shinyaten Six time slots per week "Hidehiko Ishizuka's Zenkoku Otoriyose Special for Ochugen and Oseibo" (special program) Uresen Friday at 16:00 from April

19 "1-SEG" strategy Form "1-SEG Project 2007" headed by director general of the programming division. NTV is the frontrunner! Status of "1-SEG" : -Diffusion of mobile devices More than 10 million units this summer. Further spread expected in Possibility of starting independent "1-SEG" service from NTV's unique "service," "programming" and "business model Enhances the NTV brand value"+"pursues sponsors' merits" Japanese ad expenditures Source:Joho Media Hakusho (Billions of yen) Internet Sales promotion 1, , ,000.2 Companies have larger sales promotion budgets Results of 1-SEG Research average time per viewing = 28 mins. 27 secs. over 50% use almost daily and 3-4 times a week over 90% view more than once a week Newspaper Magazine Radio 1, , ,561.7 Develop new type of special advertising based on partnership of broadcasting x communications + Firmly establish position in the mobile content industry TV 2, , , Year Aim to be the leading company of 1-SEG 19

20 NTV2 business strategy About NTV2 Number of monthly visitors :approx 640,000 visitors Number of video replays per month :approx 2,100,000 times Number of registered subscribers :over 600,000 subscribers male/female ratio 6:4 :high ratio of females (as of April 2007) Top page of NTV2 Website Gaining popularity by showing unaired and behind-the-scenes footage of various dramas and variety shows, and by further strengthening coordination with terrestrial programs. Multitude of offerings are made available because NTV operates its i own website and can fully utilize its production strengths. <Original short dramas for the Internet> <Offers popular video submission service> URL: <Original projects for the Internet> <Offers amateur sports> Deliver original short drama, "Bambino!" which is connected with the terrestrial drama only via the Internet. Coordinate with terrestrial program Digital Baka2 to engage users to participate in interactive service. Daily updates documenting young mountain hikers set to scale the 7 highest summits in the world with messages of encouragement submitted by viewers. Unaired terrestrial broadcasting footage from amateur sporting events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. 20

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