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August 2nd, 2007August 2nd, 2007
Results MeetingResults Meetingforfor
11stst Quarter of Fiscal Year Quarter of Fiscal Year 20072007
(April 1 (April 1 –– June 30, 2007)June 30, 2007)
Nippon Television Network CorporationNippon Television Network Corporation
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
Table of ContentsTable of Contents
Financial highlights (Consolidated) ...... P 4
Financial highlights (Non-consolidated) P 5
Spot sales (Non-consolidated) ...............P 07
Forecast for FY2007 ................................P 09
Programming strategy ............................P 12
(Ref.) Viewer ratings ................................P 19
4
Highlights of Operating ResultsHighlights of Operating Results(Consolidated)(Consolidated)
△17.15,0546,094Net income
△22.18,90111,422Recurring profit
△27.07,53010,315Operating income
△ 2.284,27486,185Net sales
%FY 2007 1QFY 2006 1Q
(Unit : Millions of yen)
§ NTV, a non-consolidated company, decreased both sales and profit.§ VAP decreased due to fewer volume of DVD compared to the previous
fiscal year.§ Investment profit on equity method increased due to BS Nippon's positive
figure.
5
Highlights of Operating ResultsHighlights of Operating Results(Non(Non--Consolidated)Consolidated)
△18.54,024 4,937Net income
△19.56,7138,342Recurring profit
△22.05,7957,427Operating income
△0.772,01272,551Net sales
%FY 2007 1QFY 2006 1Q
【TV Broadcasting Revenue】?Time sales decreased due to absence of large-scale special programs, such as FIFA World Cup, though sales from regular programs remained the same.?Spot sales decreased as overall spot sales in Tokyo area declined.
【Events/Content Business Sales】?Sales from media commerce business largely increased. Movie business and overseas sales business performed well and increased revenue.
【Production costs】Production costs increased 3.1% yoy due to programs NEWS ZERO and Music Lovers which started October 2006.
【Events/Content Business costs】In movie business, two large-scale movies opened in theaters. Media commerce costs increased due to business
expansion.
6
TV Broadcasting SalesTV Broadcasting Sales(Non(Non--consolidated)consolidated)
(Unit : Millions of yen)
Million
△4.0△1,18628,81530,002Spot
△2.9△98432,62533,610Time
△3.4△2,17161,44163,612Total
(%)DecreaseFY2007
1Q
FY2006
1Q
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY2006 1Q FY2007 1Q
Time Spot
7
Spot Sales Spot Sales
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
FY 2006 1Q FY 2007 1Q
MillionCosmetics/Toiletries
Non-Alcohol
Alcohol
Electronic equipment
Transportation/ Telecommunications
Pharmaceutical
Automobile
Food
Service
Other Food
Finance
Other
△2.828.0Other
△49.34.33Finance
100.00Total
23.64.34Other Food
24.64.39Service
0.14.80Food
△15.96.55Automobile
3.06.60Pharmaceutical
0.36.77Transportation/Telecommunications
△15.97.89Electronic equipment
△0.98.13Alcohol
△7.58.77Non-alcohol
△ 5.59.43Cosmetics/Toiletries
%Share
8
Events / Content Business SalesEvents / Content Business Sales((NonNon--consolidated consolidated ))
Million
(Unit : Millions of yen)
28.01,5517,0825,531Total
%IncreaseFY2007
1Q
FY2006
1Q
0
2,500
5,000
7,500
FY2006 1Q FY2007 1Q
9
Forecast for FY2007Forecast for FY2007
(Unit : Millions of yen)
7,00012,50010,500287,000Non-consolidated
11,50021,50018,500335,500Consolidated
Net incomeRecurring
profitOperating
incomeNet salesFiscal year
2,0004,0002,500137,000Non-consolidated
4,0008,5007,000161,500Consolidated
Net incomeRecurring
profitOperating
incomeNet salesInterim
(Unit : Millions of yen)
*As of May 17, 2007
10
(Ref.) Forecast for Business Segments(Ref.) Forecast for Business Segments
18,500317,000335,500Consolidated
△ 14,7007,000△ 7,700Elimination/Corporate
33,200310,000343,200Total
2,50012,20014,700Other
4,70057,90062,600Cultural Activities
26,000239,900265,900Television Broadcasting
Operating income
Operating expenses
Net salesFY2007
(Unit : Millions of yen)
*As of May 17, 2007
11
(Ref.) Forecast for CAPEX and Depreciation(Ref.) Forecast for CAPEX and Depreciation
12.66.8FY2007
DepreciationCAPEX〈Consolidated 〉
(Unit : Billions of yen)
12.08.9FY2009
12.49.7FY2008
11.96.3FY2007
10.46.0FY2011
11.58.4FY2010
DepreciationCAPEX〈Non-consolidated 〉
(Unit : Billions of yen)
*As of Aug 2, 2007
12
Programming Strategy Towards Accomplishing Programming Strategy Towards Accomplishing MediumMedium--Term Management Plan GoalsTerm Management Plan Goals
Create programming schedule to 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
13
Organizational Reform Towards Accomplishing Organizational Reform Towards Accomplishing MediumMedium--Term Management Plan GoalsTerm Management Plan Goals
PurposePurpose
Main point
No. 1 in broadcasting revenue salesNo. 1 in broadcasting revenue salesNo. 1 in nonNo. 1 in non--broadcasting revenuebroadcasting revenue
Integration of Digital, VoD and Film Departments into Integration of Digital, VoD and Film Departments into Programming DivisionProgramming Division
PRODUCTIONP LANNING
&DEVELOPMENT
PROGRAMMING
PROGRAMMINGSTRATEGY
DIGITALCONTENT
FILM CONTENTPROMOTION
・PROGRAMMING・MULTI-USE PROGRAMPLANNING & DEVELOPMENT
・DIGITAL PRODUCTION・DIGITAL BUSINESS PLANNING &DEVELOPMENT
・FILM PROGRAMMING & ACQUISITION・FILM PRODUCTION
-MARKETING & RESEARCH-PUBLICITY-ANNOUNCERS
RIGHTS &CONTRACTS
MANAGEMENT ・PROGRAM ADMINISTRATION
・PROGRAMMING BUSINESS MANAGEMENT・ADMINISTRATION
Terrestrial broadcasting-related business expansion
(Examples)・Streaming drama spin-offs of “Bambino” and “Hotaru no Hikari” on NTV2・New interactive program “Genki!.com” allowing viewer participation via mobile phone or PC to start in October・Strengthen collaboration of NTV-invested films and terrestrial broadcasting for synergetic effect
(Organization Chart)
14
Movie BusinessMovie Business
Showing in theaters since April 14, 2007 with box-office revenue of 2 billion yen. DVD to be released later this year.
Now showing (since June 16) with 1.5 million moviegoers and box-office revenue of 2 billon yen so far.DVD to be released later this year.
Sequel of 2005 blockbuster hit. Due in theaters Nov. 3
Movie based on real-life story in wake of Chuetsu Earthquake. Expected in theaters December 8, 2007.
DEATH NOTE spin-off due in theaters from Feb. 9, 2008
Other NTV-invested movies to be released include: “Kagehinata ni Saku”“Shinigami no Seido” (tentative title). Currently in theaters: “Maiko Haaaan!!!”“Piano no Mori” “Sore Ike! Anpanman Shabondama no Purun” and “Azuuru to Asumaaru.”
Tokyo TowerTokyo Tower
Maiko Maiko Haaaan!!!Haaaan!!!
ALWAYSALWAYS-- SunsetSunset onon ThirdThird Street Street ⅡⅡ
Mari to Koinu no MonogatariMari to Koinu no Monogatari
Main Lineup for FY2007 Main Lineup for FY2007
LL ((tentative titletentative title))
15
Media Commerce BusinessMedia Commerce Business
FYFY20072007 1Q1QSSales1.86 billionales1.86 billion yenyen (doubled from last year)
(profit increased by 7 times(profit increased by 7 times))
【Competitive Edge of NTV’s Media Commerce】•Creative changes made to programs “RADICUL×POSHLET” ”Uresen!” and “POSHLET Depato Shinyaten”•“Yumei Shufu Talent! Zenkoku Otoriyose Ochuugen Special” a program combining media commerce and infotainment (broadcast on July 15)was well-received. Sales of 600 million yen•“Billy’s Boot Camp” in tremendous demand after Billy Blanks himself appeared on show
Accurately pinpointing sales of popular Accurately pinpointing sales of popular merchandise based on our experience led merchandise based on our experience led to sales increase.to sales increase.
*Popular items: Tenten belt, HAMANO bag, Genie Instant Line Smoother, NINTENDO DS Lite, etc.
16
Programming Strategy Stemming from Programming Strategy Stemming from New Corporate OrganizationNew Corporate Organization
Earn No. 1 viewer ratings as JapanEarn No. 1 viewer ratings as Japan’’s No. 1 content producers No. 1 content producer
Reorganize Programming DivisionReorganize Programming Division
Change our MindsetChange our Mindset
Group StrategyGroup Strategy
Become a Terebiya(TV person)Create the “never-before-seen”
• Fully coordinate terrestrial broadcasting, NTV2, “1-SEG” and films
Division to serve as headquarters to generate the best content and most profit
Aim to be a more polished professional organization
(refer to p.16)
Collaborate with affiliates of NTV Group HoldingsIncrease Group’s production ability and control costs
• Support specialization of production, infotainment and sports divisions• Expedite rights clearance• Strengthen marketing
17
October ReformsOctober Reforms**NonNon--prime time prime time
①Strengthen daytime block・Revamp ”Omoikkiri TV”
Increase younger viewers without losing current viewersExpand by 5 minutes and increase outdoor video shootsAppearances by high-profile guests
・Slot for ”The Wide” to be used for re-runs
・New program “Genki! .com” in 16:00 time slot
②Further strengthen “NEWS ZERO” in 23:00 time slotExpand slot by 3 minutes to enhance culture and special features section; vary guest commentators
③Improve viewer flow of weekend daytime blockNew program ”Heisei Family” (tentative title) to fill Sunday daytime slot
**Reinforce Prime TimeReinforce Prime TimeNew programs: Monday 22:00 and Tuesday 19:00To delete programs with single-digit viewer rating
18
Programming ReformsProgramming Reforms
■Morning Programs Faring Well ■Success in Strengthening Weekend Prime Time■Drama Reforms
Wednesday dramas ”Bambino” and “Hotaru no Hikari” continue to do well
Analysis of Current Analysis of Current Viewer RatingsViewer Ratings
【Aggressive ApproachAggressive Approach】】
*Campaign-style Programming■June ”Eco week”■July “School”■August “24-Hour TV”
*Challenge to Create New Value for Terrestrial Broadcasting Media
19
Ref: Viewer RatingsRef: Viewer Ratings①①
Yearly 2007 (January 1,2007- July 29, 2007/ 30Weeks) Source: Video Research
38.42.66.38.16.77.6Last year
36.72.66.37.36.47.1Non-prime time
67.18.212.014.412.712.8Last year
65.68.311.113.612.212.0Golden time
66.57.812.914.512.713.0Last year
64.77.812.113.612.212.2Prime time
44.63.87.89.58.08.8Last year
43.03.77.68.77.78.3All day
HUTTXEXCXTBSNTV
20
Ref: Viewer RatingsRef: Viewer Ratings②②
Fiscal Yearly 2007(April 2, 2007 – July 29, 2007/ 17Weeks) Source: Video Research
37.52.66.28.06.47.3Last year
36.32.56.37.16.36.9Non-prime time
66.18.411.814.412.312.2Last year
65.38.211.313.411.811.9Golden time
65.77.912.814.512.412.5Last year
64.47.812.313.311.712.0Prime time
43.73.87.69.57.78.4Last year
42.53.77.68.57.58.0All day
HUTTXEXCXTBSNTV
21
Yomiuri Giants Night GamesYomiuri Giants Night Games
April May June July August September October Avg.
2007 10.9 10.2 9.0 8.7 10.1
NTV 11.3 10.3 9.7 9.2 10.4
Other 10.6 10.1 8.5 8.0 9.8
2006 12.7 11.4 9.0 7.0 6.8 7.0 9.6
2005 12.9 13.1 10.2 8.2 7.2 7.2 10.2
2004 15.4 14.0 13.8 11.0 8.5 9.0 12.2
2003 16.1 16.3 16.0 13.0 12.2 9.8 14.3
(%)
▲0.2▲0.3▲0.2Decreace
10.38010.14110.6392006
10.1569.83110.4252007
%*%*%*
AverageOtherNTV
Detail of Viewer RatingsAs of July 30th , 2007
Source: Video Research
*Number of games on terrestrial TV