Results Meeting for 2 nd Quarter of FY2011 (April 1 - September 30, 2011) November 9, 2011 Nippon Television Network Corporation

Transcription

1 Results Meeting for 2 nd Quarter of FY2011 (April 1 - September 30, 2011) November 9, 2011

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 forwardlooking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable laws.

3 Noritada Hosokawa REPRESENTATIVE DIRECTOR CHAIRMAN

4 FY2011 2Q Topics Revised financial forecast Revenue and profit decreased in 1 st half of FY2011 Favorable TV broadcasting sales offset decrease of disasters Consolidated operating profit revised to 29.3 billion yen Dividends Annual dividend forecast: 290 yen (same as previous year) Steady sales of spot and time October regular time sales increased yoy

5 Yoshio Okubo REPRESENTATIVE DIRECTOR PRESIDENT

6 FY2011 Management Policy Setting our sights on recapturing of top position through annual viewer ratings Strive to win double crown titles for Golden and Prime time viewer ratings In preparation for NTV s 60 th anniversary

7 Yasuhiro Nose BOARD DIRECTOR MANAGING OFFICER

8 Net Sales (Consolidated) Net Sales (Consolidated) (Unit: Millions of yen) (Unit: Millions of yen) Operating profit per company FY2010 Apr. Sep. 144,972 FY2011 Apr. Sep. 140,887 ( 2.8%) Sales decreased ( 4,085 million yen yoy) Non consolidated performance greatly influenced Both VAP and NTV Music decreased FY2010 2Q FY2011 2Q

9 Analysis of Operating Profit (Consolidated) Operating Profit (Unit: Millions of yen) (Unit: Millions of yen) Operating profit comparison in/decrease yoy FY2010 Apr. Sep. 11,703 FY2011 Apr. Sep. 10,299 ( 12.0%) VAP Sales of DVDs and Blu ray Discs decreased Production costs further reduced Operating profit increased 170 million yen NTV Music Operating profit decreased 360 million yen due to rebound of rights revenue of Lupin the 3 rd

10 TV Advertising Revenue (Non consolidated) (Unit: Millions of yen) (Unit: Millions of yen) TV Advertising Revenue FT2010 Apr. Sep. FY2011 Apr. Sep. Decrease % 101,891 99,965 1, Time 53,088 52, Spot 48,802 47,708 1, *( ): Spot rate TV Advertising Revenue FY2010 Jul. Sep. FY2011 Jul. Sep. Increase % 49,371 50,590 1, (Unit: Millions of yen) 1Q TV advertising revenue trend Time 26,705 27, Spot 22,666 23, (FY)

11 Production Costs (Non consolidated) (Unit: Millions of yen) FY2010 Apr. Sep. FY2011 Apr. Sep. Decrease % 48,019 47, FY2010 Jul. Sep. FY2011 Jul. Sep. Increase % 24,347 24, (Unit: Millions of yen) Program production cost trend Beijing 2008 Olympic Games, NTV 55 th anniversary programs 2009: Significant reduction of production costs 2002 FIFA World Cup Korea/Japan FY nd Quarter (Year)

12 Events/Content Business Sales and Costs FY nd Quarter (Unit: Millions of yen) Sales Costs Sales Costs FY11 Apr. Sep. FY11 Jul. Sep. Events 3,251 3,011 1,984 1,915 BS, CS, CATV, Other 2,665 1,371 1, Rights 1, Overseas Sales Media Commerce 5,555 5,232 2,985 2,794 Publications Movies 3,583 3,140 1,489 1,057 Other Total 17,491 14,569 9,099 7,341

13 FY2011 Forecast and Preconditions FY2011 Forecast (Unit : Millions of yen) Net sales Operating profit Recurring profit Net income Consolidated 300,500 29,300 34,000 19,300 (As of July 28, 2011) 297,000 27,200 31,500 17,000 Non consolidated 264,200 25,000 27,300 14,800 (As of July 28, 2011) 259,500 22,900 24,900 12,600 Preconditions of non consolidated TV advertising revenue and production costs (yoy) As of July 28 1H 2H FY Result: As of November 4 As of July 28 Result: As of November 4 As of July 28 Result: As of November 4 TV advertising revenue 3.2% 1.9% 0.2% 3.6% 1.5% 0.9% Time 2.5% 1.6% 0.3% 4.7% 1.1% 1.6% Spot 4.0% 2.2% 0.0% 2.5% 1.9% 0.3% Production costs 0.8% 1.1% 2.7% 8.0% 0.9% 3.2%

14 Yoshinobu Kosugi BOARD DIRECTOR OPERATING OFFICER Director General, Programming

15 October Reforms Strive to win the double crown titles for Golden and Prime time viewer ratings 1Earning high viewer ratings of dramas Wed. 22:00 I m Mita, Your Housekeeper. Average viewer ratings :19.4% (first 4 episodes) Targeting F1 and F2 viewer segments Sat. 21:00 Humanoid Monster, Bem (tentative title) Average viewer ratings : 17.4% (first 3 episodes) Target: Family viewers 2Fortify viewer flow (from one program to the next) Mon.19:00 TORE (Moving from Wed. 19:00) Tue. 21:00 Nandemo World Ranking Nep & Imoto no Sekai Banzuke Wed. 19:00 1 Ban Song Show

16 Addressing the Post Transition Phase of Full Digitalization Fully Enjoy Digital Terrestrial Broadcasting! Campaign Week Aug. 29 (Mon) through Sep. 4 (Sun) Sep. 2 (Fri) 19:20~21:24 Preliminary competition 2014 FIFA WORLD CUP BRAZIL Japan vs. North Korea In addition to datacasting player information, a voting project was implemented on a quiz program 170,000 quiz entries Sep. 4 (Sun) 19:58~20:54 Sekai no Hate Made Itte Q Popular multiple choice segment for viewers to select from and vote via datacasting Interactive service 110,000 voting participants Multichannel broadcasting as 10 minute midnight segment

17 2H Programming Topics Eat Japanese Food Week! Campaign Nov. 21 (Mon) through 27 (Sun) Showing support for Japan through various foods Large scale sporting events Dec. 8 through 18 FIFA Club World Cup Japan 2011 presented by TOYOTA First time in three years to host tournament; Full live broadcast of all games Lionel Andres Messi of FC Barcelona serves as the main image character (FIFA World Player of the Year) Jan. 2 3, 2012 Hakone Ekiden Feb. 26, 2012 Tokyo Marathon 2012 End of year and New Year specials, plus spring specials Expand favorable regular programming of Golden and Prime times, and aim to garner high viewer ratings while focusing on large scale special programming

18 Reference Materials for Financial Results

19 Sales Results and Forecast (Time) Time FY10 FY2011 July 2.9% 2.4% August 5.1% 3.3% September 8.8% 5.2% Apr. Sep. 4.0% 1.6% (%) (Month)

20 Sales Results and Forecast (Spot) Spot FY2010 FY2011 July 13.5% 0.6% August 13.2% 3.3% September 4.5% 7.9% Apr. Sep. 11.7% 2.2% Reasons for In/Decrease (Apr. to Sep.) Reasons for increase Reasons for decrease Industry In/Decrease Reason Wholesale/ Department store Cosmetics/Toiletrie s +31.6% Ad revenue budget shifting from print to spot CMs +7.8% Spot CM advertising active overall Foods 15.9% Factories damaged in Great East Japan Earthquake ad decrease Automobile 22.1% Factories damaged in Great East Japan Earthquake ad decrease Alcohol 20.4% Factories damaged in Great East Japan Earthquake ad decrease

21 Spot Sales (Apr. Sep.) FY2011 Apr. Sep. Share % FY2010 Apr. Sep. Share % 1 Cosmetics/Toiletries Cosmetics/Toiletries Transportation/ Telecommunications Automobile Pharmaceutical Pharmaceutical Electronic equipment Alcohol Alcohol Electronic equipment Non alcohol Transportation/ Telecommunications Automobile Service Box office/ Entertainment Non alcohol Service Box office/ Entertainment Wholesale/ Department store Finance Other Other Total Total 100.0

22 Spot Sales (Jul. Sep.) FY2011 Jul. Sep. Share % FY2010 Jul. Sep. Share % 1 Cosmetics/Toiletries Cosmetics/Toiletries Transportation/ Telecommunications Automobile Automobile Pharmaceutical Pharmaceutical Transportation/ Telecommunications Electronic equipment Electronic equipment Box office/ Entertainment Alcohol Service Service Alcohol Box office/ Entertainment Non alcohol Non alcohol Finance Finance Other Other Total Total 100.0

23 CAPEX and Depreciation (Unit: Billions of yen) FY2011 Apr. Sep. CAPEX Depreciation Consolidated Non consolidated Consolidated forecast CAPEX Depreciation FY Non consolidated forecast CAPEX Depreciation FY FY FY

24 Cash Flow (Consolidated) (Unit: Millions of yen) FY2010 Apr. Sep. FY2011 Apr. Sep. Cash flow from operating activities 5,187 6,706 Cash flow from investing activities 11, Cash flow from financial activities 4,910 4,859 Cash and cash equivalents at the end of period 33,854 35,597

25 Segment Information (Results and Forecast) Apr. Sep. Result Content business Real estate business (Unit : Millions of yen) Other Adjustment Consolidated Net sales 138,366 3,733 1,548 2, ,887 Operating expenses 128,912 2,834 1,602 2, ,587 Operating profit 9, ,299 FY2011 Forecast Content business Real estate business Other Adjustment Consolidated Net sales 295,400 7,100 2,600 4, ,500 Operating expenses 267,810 5,320 2,670 4, ,200 Operating profit 27,590 1, ,300

26 Mo Lineup for FY2011 Release Date Title Distributor July 16 th From Poppy Hill TOHO October 1 st DOG x POLICE: The K 9 Force TOHO November 5 th KAIJI 2 TOHO November 26 th Kaibutsu kun: The Movie TOHO December 21th WILD 7 WARNER BROS. January 21 st ALWAYS Sunset on Third Street 3 TOHO February 21 st Gyakuten Saiban (tentative) TOHO

27 TV Shopping FY2011 Apr. Sep. Sales and Profit FY2010 FY2011 Top 5 Bestsellers (April September 2011) Sales 5,512 5,555 Profit Achieved Revenue Increase (Unit : Millions of yen) Expanding broadcasting time slots at affiliates, BS Nittele Unveil popular products car navigation systems, limited edition of bags, etc. Special programs doing extremely well Future Strategies Further expansion at affiliates More time set aside during regular programming Create special programs with originality Gyoretsu no Dekiru Tsuuhan Ou #6 broadcast on May billion (highest amount for special programs)