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

Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Page 1: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

May 22nd, 2007May 22nd, 2007

Results MeetingResults Meetingforfor

Fiscal Year 2006Fiscal Year 2006(April 1, 2006 (April 1, 2006 –– March 31, 2007)March 31, 2007)

Nippon Television Network CorporationNippon Television Network Corporation

Page 2: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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.

Page 3: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

3

Table of ContentsTable of Contents

Financial highlights (Consolidated) ..........................P 4

Financial highlights (Non-consolidated) ................. P 06

Spot sales (Non-consolidated) ................................. P 08

Forecast for FY2007 .................................................. P 12

Programming reforms ............................................... P 15

Page 4: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

4

Highlights of Operating ResultsHighlights of Operating Results(Consolidated)(Consolidated)

33.818,33113,700Net income

13.834,14230,014Recurring profit

6.330,34428,551Operating income

△0.9343,651346,642Net sales

%FY 2006FY 2005

(Unit : Millions of yen)

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.

Page 5: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

5

Cash FlowCash Flow(Consolidated)(Consolidated)

(Unit : Millions of yen)

61,52359,368Cash and equivalents at the end of March 31, 2007

△ 4,713△15,920Cash flow from financing activities

△24,596△24,358Cash flow from investing activities

31,45732,683Cash flow from operating activities

FY 2006FY 2005

Page 6: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Highlights of Operating ResultsHighlights of Operating Results(Non(Non--consolidated)consolidated)

(Unit : Millions of yen)

59.012,7268,001Net income

18.423,86320,146Recurring profit

13.320,89818,450Operating income

0.3288,636287,829Net sales

%FY 2006FY 2005

Net sales increased due to favorable sales of Events/Content business, such as movie and media commerce. Controlling programming costs led profit to increase.

Page 7: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

7

TV Broadcasting SalesTV Broadcasting Sales(Non(Non--consolidated)consolidated)

0

50,000

100,000

150,000

200,000

250,000

300,000

FY 2005 FY 2006

Time sales Spot sales (Unit : Millions of yen)

(Unit : Millions of yen)

△ 4.7△5,314108,305113,619Spot sales

△ 2.5△3,608138,219141,828Time sales

△ 3.5△8,923246,524255,448Total

%DecreaseFY 2006FY 2005

△ 2.2△1,22754,82756,055Spot sales

△ 1.8△1,31970,24971,568Time sales

△ 2.0△2,546125,076127,623Total

%DecreaseFY 2006

(Oct .– Mar.)

FY 2005

(Oct. – Mar.)

Million

Page 8: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Spot Sales by IndustrySpot Sales by Industry( FY2006 )( FY2006 )

0

15,000

30,000

45,000

60,000

75,000

90,000

105,000

120,000

FY 2005 FY 2006

Million

Automobile

Electronic equipment

Cosmetics/ Toiletries

Transportation/ Telecommunications

Finance

Non-Alcohol

Pharmaceutical

Sports / Hobby goods

Box-office / Entertainmemt

Other△ 9.033.39Other

100.00Total

9.73.80Box-office / Entertainment

33.84.11Sports / Hobby goods

△ 3.95.63Pharmaceutical

9.06.32Non-alcohol

△28.86.47Finance

△ 2.16.73Alcohol

4.77.72Transportation/Telecommunications

△ 8.08.20Cosmetics/Toiletries

△ 0.38.78Electronic equipment

△ 1.38.85Automobile

%Share

Page 9: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Spot Sales by IndustrySpot Sales by Industry(( Oct.2006 Oct.2006 -- Mar.2007 )Mar.2007 )

0

15,000

30,000

45,000

60,000

Oct.'05-Mar.'06 Oct.'06-Mar.'07

Million Automobile

Electronic equipment

Transportation/Telecommunication

Cosmetics/ Toiletries

Alcohol

Finance

Pharmaceutical

Sports / Hobby goods

Non-alcohol

Service

Other△ 0.635.26Other

100.00Total

3.93.52Service

1.74.35Non-alcohol

36.14.61Sports / Hobby goods

5.85.68Pharmaceutical

△ 38.55.71Finance

0.85.96Alcohol

△ 14.56.97Cosmetics/Toiletries

22.98.80Transportation/Telecommunications

△ 8.19.39Electronic equipment

1.59.75Automobile

%Share

Page 10: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Events / Content Business SalesEvents / Content Business Sales(( NonNon--consolidated consolidated ))

0

5,000

10,000

15,000

20,000

25,000

30,000

FY 2005 FY 2006

Apr.-Sep. Oct.-Mar.

(Unit : Millions of yen)

69.46,28715,3539,065Total

%IncreaseFY2006

(Oct-Mar)

FY2005(Oct-Mar)

52.79,73228,21618,484Total

%IncreaseFY2006FY2005

Million

(Unit : Millions of yen)

Page 11: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Production costsProduction costs(Non(Non--consolidated)consolidated)

0

30,000

60,000

90,000

120,000

FY 2005 FY 2006

Apr.-Sep. Oct.-Dec.

(Unit : Millions of yen)

(Unit : Millions of yen)

△ 2.2△1,23854,87756,116Total

%DecreaseFY2006

(Oct-Mar)

FY2005

(Oct-Mar)

△ 1.8△2,084110,644112,729Total

%DecreaseFY2006FY2005

Million

Page 12: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Forecast for FY2007Forecast for FY2007

(Unit : Millions of yen)

7,00012,50010,500287,000Non-consolidated

11,50021,50018,500335,500Consolidated

Net incomeRecurring profit

Operating incomeNet salesFiscal year

2,0004,0002,500137,000Non-consolidated

4,0008,5007,000161,500Consolidated

Net incomeRecurring profit

Operating incomeNet salesInterim

(Unit : Millions of yen)

Page 13: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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(Ref.) Forecast for CAPEX and Depreciation(Ref.) Forecast for CAPEX and Depreciation

12.66.8FY2007

DepreciationCAPEX〈 Consolidated 〉

(Unit : Billions of yen)

10.98.9FY2009

11.59.7FY2008

11.96.3FY2007

9.66.0FY2011

10.58.4FY2010

DepreciationCAPEX〈 Non-consolidated 〉

(Unit : Billions of yen)

Page 14: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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ProgrammingProgramming

Programming reformsProgramming reformsCreate 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

Page 15: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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■Successful strengthening of prime time slotsSaturday 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 programsFirmly establish viewership through stronger PR strategy.

■Strategic holiday weekBroadcast 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

Programming reformsProgramming reforms(overview of April reforms)(overview of April reforms)

Page 16: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Programming strategyProgramming strategy

October reforms: nonOctober reforms: non--prime time slotsprime 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 timeShore up weakness of prime time・To delete programs with single-digit viewer ratings

【【New challengesNew 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 30th anniversary

*Create new media value▪ Coordination of "1-SEG" with regular programs

Page 17: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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Movie businessMovie businessSuccess of "DEATH NOTESuccess of "DEATH NOTE““Generate maximum revenue through multiuse of movies, terrestrialbroadcasting, DVDs and program sales overseas

Movie Movie ““DEATH NOTEDEATH NOTE””・Prequel and sequel box-office revenue totaling over 8 billion yen・Just four months after its movie release, “DEATH NOTE” prequelshown on terrestrial broadcasting earned viewer rating of 24.5%・Sales of DVDs from VAP about 1 million copies1 million copies

・Flood of overseas offers, especially from Asian countries

Main lineup for FY2007Main lineup for FY2007・・Tokyo TowerTokyo Tower ・・・From Apr. 14・・Maiko Maiko HaaaanHaaaan!!! !!! ・・・From Jun. 16・・ALWAYSALWAYS-- SunsetSunset onon ThirdThird Street Street ⅡⅡ ・・・From Nov. 3・・Mari to Mari to KoinuKoinu no no MonogatariMonogatari ・・・From December・・LL ((DEATH NOTE spinDEATH NOTE spin--offoff)) ・・・From January

Page 18: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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0

1000

2000

3000

4000

5000

6000

7000

FY2005 FY2006

Media commerce businessMedia commerce businessSales from non-consolidated media commercebusiness (FY2006)

Sales 5.7 billion yen (triple increase)

Increase of program airtime to improve visibilityIncrease 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

Well thoughtWell thought--out strategy to sell out strategy to sell popular programpopular program--related related merchandise led to sales increase.merchandise led to sales increase.*In-demand items: Tenten belt, Cowboy Little, BOJOBO Wishing Doll, HAMANO’s bag and NINTENDO DS Lite

(Millions of yen)Media commerce sales

Page 19: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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【Japanese ad expenditures】

"1"1--SEG" strategySEG" strategy

Status of "1-SEG" :-Diffusion of mobile devices ⇒ More than 10 million units this summer. Further spread expected in 2008.-Possibility of starting independent "1-SEG" service from 2008.

NTV's unique "service," "programming" and "business model“⇒ “Enhances the NTV brand value"+"Pursues sponsors' merits"

Form "1-SEG Project 2007" headed by director general of the programming division.「 NTV is the frontrunner !」

・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

Firmly establish position in themobile content industry

Results of “1-SEG” Research

Develop new type of special advertising based on partnership of “broadcasting x communications”

Source:Joho Media Hakusho

Aim to be the leading company of “1-SEG”

Salespromotion 1,956.1

1,632.4

2,043.6

NewspaperMagazine

Radio

TV

Internet

1,981.9

2,041.1

2,000.2

2,016.1

1,610.0 1,561.7

181.4 280.8 363.0

2004 2005 2006 Year

(Billions of yen)

Companies have larger sales promotion budgets

Page 20: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily

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NTV2 business strategyNTV2 business strategy【 About NTV2 】

URL:http://www.dai2ntv.jp/

Coordinate with terrestrial program “Digital Baka2” to engage users to participate in interactive service.

<Offers popular video submission service>

・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)

Gaining popularity by showing unaired and behind-the-scenes footage of various dramas and variety shows, and by further strengthening coordination with terrestrial programs.

Top page of NTV2 Website ↓

Unaired terrestrial broadcasting footage from amateur sporting events, such as Tokyo Big6 Baseball and Hakone Ekidendraw interest.

<Offers amateur sports><Original projects for the Internet>

Daily updates documenting young mountain hikers set to scale the 7 highest summits in the world with messages of encouragement submitted by viewers.

Multitude of offerings are made available because NTV operates iMultitude of offerings are made available because NTV operates its ts own website and can fully utilize its production strengths.own website and can fully utilize its production strengths.

<Original short dramas for the Internet>

Deliver original short drama, "Bambino!" which is connected with the terrestrial drama only via the Internet.

Page 21: Results Meeting for Fiscal Year 2006 · events, such as Tokyo Big6 Baseball and Hakone Ekiden draw interest. <Original projects for the Internet><Offers amateur sports> Daily