Results Meeting for 2nd Quarter of FY2011...2011/12/27 · Lionel Andres Messi of FC Barcelona serves as the main “image character” （FIFA World Player of the Year) ・Jan. 2

Results Meeting for 2nd

Quarter of FY2011 (April 1 - September 30, 2011)

November 9, 2011

Nippon 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.

Noritada HosokawaREPRESENTATIVE DIRECTORCHAIRMAN


FY2011 2Q Topics

Revised financial forecastRevenue and profit decreased in 1st

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

Yoshio OkuboREPRESENTATIVE DIRECTORPRESIDENT


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

60th

anniversary

Yasuhiro NoseBOARD DIRECTORMANAGING OFFICER


Net Sales (Consolidated)

Operating profit per company (Unit: Millions of yen)

■Sales decreased (△4,085 million yen yoy)

■Non‐consolidated performance greatlyinfluenced

■Both VAP and NTV Music decreased FY2010 2Q FY2011 2Q

Net Sales

(Consolidated)

(Unit: Millions of yen)

FY2010 Apr.‐Sep. 144,972

FY2011 Apr.‐Sep.140,887(△2.8%)


Analysis of Operating Profit (Consolidated)

■VAPSales of DVDs and Blu‐ray Discs decreasedProduction costs further reduced

➪Operating profit increased 170 million yen

■NTV MusicOperating profit decreased 360 million yen

due to rebound of rights revenue of “Lupin

the 3rd”

Operating profit comparison in/decrease yoy(Unit: Millions of yen)Operating Profit


FY2010 Apr.‐Sep. 11,703

FY2011 Apr.‐Sep.10,299

(△12.0%)


FT2010

Apr.‐Sep.

FY2011

Apr.‐Sep.

Decrease %

TV

Advertising

Revenue

101,891 99,965 △1,925 △1.9

Time 53,088 52,256 △831 △1.6

Spot 48,802 47,708 △1,094 △2.2

FY2010

Jul.‐Sep.

FY2011Jul.‐Sep.

Increase %

TV

Advertising

Revenue

49,371 50,590 1,219 2.5

Time 26,705 27,067 362 1.4

Spot 22,666 23,523 856 3.8

TV Advertising Revenue

(Non‐consolidated)

(Unit: Millions of yen)(Unit: Millions of yen)

*(

): Spot rate


(FY)

1Q TV advertising revenue trend


FY2010 Apr.‐Sep. FY2011 Apr.‐Sep. Decrease %

48,019 47,498 △521 △1.1

FY2010 Jul.‐Sep. FY2011 Jul.‐Sep. Increase %

24,347 24,372 25 0.1

Production Costs (Non‐consolidated)

Program production cost trend


Beijing 2008 Olympic

Games,

NTV 55th

anniversary programs

2002 FIFA World Cup

Korea/Japan ™

2009: Significant

reduction of production

costs


(Year)

FY2011

2nd

Quarter


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 1,315 665

Rights 1,265 615 662 305

Overseas Sales 248 77 145 37

Media

Commerce 5,555 5,232 2,985 2,794

Publications 289 266 183 151

Movies 3,583 3,140 1,489 1,057

Other 636 858 337 418

Total 17,491 14,569 9,099 7,341

Events/Content Business Sales and Costs(Unit: Millions of yen)

FY2011 2nd

Quarter


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

FY2011 Forecast and Preconditions(Unit : Millions of yen)

1H 2H FY

(yoy) As of July 28Result: As ofNovember 4

As of July

28

Result: As ofNovember 4

As of July 28Result: As ofNovember 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%

Preconditions of non‐consolidated TV advertising revenue and production costs

FY2011 Forecast

Yoshinobu KosugiBOARD DIRECTOROPERATING OFFICERDirector General, Programming


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”


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

datacastingInteractive service ➪ 110,000 voting participants

・Multichannel broadcasting as 10‐minute midnight segment


２H Programming Topics

■”Eat Japanese Food Week!”

CampaignNov. 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 gamesLionel 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

Reference Materialsfor

Financial Results


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)


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%

Industry In/Decrease Reason

Reasons

for

increase

Wholesale/Department store

+31.6% Ad revenue budget shifting from print to spot CMs

Cosmetics/Toiletrie

s+7.8% Spot CM advertising active overall

Reasons

for

decrease

Foods △15.9% Factories damaged in Great East Japan

Earthquake➪ad decrease

Automobile △22.1% Factories damaged in Great East Japan


Alcohol △20.4% Factories damaged in Great East Japan


Reasons for In/Decrease (Apr. to Sep.)


Spot Sales (Apr.‐Sep.)

FY2011 Apr.‐Sep. Share % FY2010 Apr.‐Sep. Share %

1 Cosmetics/Toiletries 14.1 7.8 Cosmetics/Toiletries 12.8 45.2

2Transportation/Telecommunications

8.0 △ 1.1 Automobile 7.1 28.7

3 Pharmaceutical 7.5 3.7 Pharmaceutical 7.0 △ 2.5

4 Electronic equipment 6.7 △ 3.8 Alcohol 7.0 △ 3.4

5 Alcohol 5.8 △ 20.4 Electronic equipment 6.7 14.3

6 Non‐alcohol 5.7 △ 3.1Transportation/Telecommunications

6.7 20.6

7 Automobile 5.7 △ 22.1 Service 5.7 7.3

8Box‐office/Entertainment

5.4 2.9 Non‐alcohol 5.7 10.7

9 Service 4.9 3.6Box‐office/Entertainment

5.1 △ 7.6

10Wholesale/Department store

4.5 31.6 Finance 4.4 7.8

Other 31.8 △ 0.9 Other 31.4 9.7

Total 100.0 △ 2.2 Total 100.0


Spot Sales (Jul.‐

Sep.)

FY2011 Jul.‐Sep. Share % FY2010 Jul.‐Sep. Share %

1 Cosmetics/Toiletries 12.4 21.5 Cosmetics/Toiletries 10.5 30.9

2Transportation/Telecommunications

7.6 1.9 Automobile 7.8 34.4

3 Automobile 7.5 △ 1.1 Pharmaceutical 7.3 12.4

4 Pharmaceutical 6.7 △ 5.3Transportation/Telecommunications

6.8 10.3

5 Electronic equipment 6.2 △ 2.1 Electronic equipment 6.5 33.2

6Box‐office/Entertainment

5.6 0.5 Alcohol 6.3 △ 6.7

7 Service 5.5 9.9 Service 6.1 6.8

8 Alcohol 5.4 △ 11.3Box‐office/Entertainment

5.7 △ 15.4

9 Non‐alcohol 5.2 1.3 Non‐alcohol 5.3 30.1

10 Finance 4.1 △ 15.2 Finance 4.9 26.3

Other 33.8 8.8 Other 32.2 1.9

Total 100.0 3.8 Total 100.0


FY2011 Apr.‐Sep. CAPEX Depreciation

Consolidated 2.0 3.6

Non‐consolidated 1.3 3.2

Consolidated forecast CAPEX Depreciation

FY2011 6.0 7.5

Non‐consolidated forecast CAPEX Depreciation

FY2011 4.8 6.5

FY2012 7.2 7.5

FY2013 6.9 7.8

CAPEX and Depreciation

(Unit: Billions of yen)


Cash Flow (Consolidated)

FY2010

Apr.‐Sep. FY2011 Apr.‐Sep.

Cash flow from operating activities 5,187 6,706

Cash flow from investing activities △11,632 440

Cash flow from financial activities △4,910 △4,859

Cash and cash equivalents at the end of period 33,854 35,597



FY2011

Forecast

Content businessReal estate

business

Other Adjustment Consolidated

Net sales 295,400 7,100 2,600 △4,600 300,500

Operating

expenses 267,810 5,320 2,670 △4,600 271,200

Operating profit 27,590 1,780 △70 0 29,300

Apr.‐Sep. Result Content businessReal estate

business

Other Adjustment Consolidated

Net sales 138,366 3,733 1,548 △2,760 140,887

Operating

expenses 128,912 2,834 1,602 △2,760 130,587

Operating profit 9,454 899 △54 △0 10,299

Segment Information (Results and Forecast)

(Unit : Millions of yen)


Release Date Title Distributor

July 16th From Poppy Hill TOHO

October 1st DOG x POLICE: The K‐9 Force TOHO

November 5th KAIJI 2 TOHO

November 26th Kaibutsu‐kun: The Movie TOHO

December 21th WILD 7 WARNER

BROS.

January 21stALWAYS –Sunset on Third Street‐

3TOHO

February 21st Gyakuten

Saiban

(tentative) TOHO

Mo Lineup for FY2011


FY2010 FY2011

Sales 5,512 5,555

Profit 618 323

Top 5 Bestsellers

(April

–

September 2011)

■ Achieved Revenue Increase

•Expanding broadcasting time slots at affiliates,

BS Nittele•Unveil popular products➪car navigation

systems, limited edition of bags, etc.•Special programs

doing extremely well

FY2011 Apr.‐Sep. Sales and Profit

■ 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 291.647 billion

(highest amount for special

programs)

TV‐Shopping

(Unit : Millions of yen)

Documents

Results Meeting for 2nd Quarter of FY2011...2011/12/27 · Lionel Andres Messi of FC Barcelona serves as the main “image character” （FIFA World Player of the Year) ・Jan. 2