Results Meeting for 3 rd Quarter of FY2007 (April 1 December 31, - - PowerPoint PPT Presentation

Results Meeting for 3rd Quarter of FY2007

(April 1 – December 31, 2007)

February 8, 2008

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.

Table of Contents

3rd Quarter Results .................................................................................P 4 Highlights of Operating Results ...............................................................P 5 Operating Results (Non- Consolidated)...................................................P 6 TV Broadcasting Sales..............................................................................P 8 Events / Content Business Sales .............................................................P 11 Production Costs.......................................................................................P 12 Forecast for FY2008 ..................................................................................P 13 Forecast for CAPEX and Depreciation.....................................................P 15 Aims of Medium-Term Management Plan................................................P 17 Improving Viewer Ratings・Strong Non-Broadcasting Revenue............P 18 Yomiuri Giants Games...............................................................................P 21 Programming Strategy ..............................................................................P 25 Main Movie Lineup ...................................................................................P 33

3rd Quarter Results

Operating Results (Consolidated)

FY 06 Apr.-Dec FY 07 Apr.-Dec % Net sales

254,433 255,250 0.3

Operating income

21,288 18,205 △14.5

Recurring profit

24,125 21,156 △12.3

Net income

12,982 9,465 △27.1 Non- Consolidated

FY 06 Oct.-Dec. FY 07 Oct.-Dec. % Net sales

88,563 89,745 1.3

Operating income

8,816 7,747 △12.1

Recurring profit

9,497 8,491 △10.5

Net income

5,212 5,132 △1.5

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

Operating Results

(Non- Consolidated)

FY 06 Apr.-Dec FY 07 Apr.-Dec % Net sales

216,125 216,582 0.2

Operating income

14,652 12,834 △12.4

Recurring profit

17,124 14,725 △14.0

Net income

10,045 6,044 △39.8 Non- Consolidated

FY 06 Oct.-Dec. FY 07 Oct.-Dec. % Net sales

74,979 76,116 1.5

Operating income

6,705 6,297 △6.1

Recurring profit

7,121 6,651 △6.6

Net income

4,194 3,994 △4.8

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

Segment Results

（Unit : Millions of yen)

Television Broadcasting Cultural Activities Other Business Subtotal Elimination / Corporate Consoli- dated

Consolidated subsidiary

･NTV Group HD ･NiTRo ･AX-ON ･NIPPON TELEVISION ART ･NTV EVENTS ･NTV Music ･VAP ･NTV Service ･NTV Work 24 ･NTV Football Club ･Forecast Communications

Net sales FY07 Apr.-Dec.

194,769 56,285 11,509 262,563 △7,313 255,250

FY06 Oct.-Dec.

199,721 49,889 11,273 260,883 △6,450 254,433

In/ Decrease

△4,952 6,396 236 1,680 △863 817

Operating income FY07 Apr.-Dec.

21,279 5,137 1,791 28,208 △10,002 18,205

FY06 Oct.-Dec.

25,043 5,172 1,147 31,362 △10,074 21,288

In/ Decrease

△3,769 △35 644 △3,154 72 △3,083

TV Broadcasting Sales

(Non-consolidated)

FY 06 Oct.-Dec. FY 07 Oct.-Dec. Decrease % Total

62,803 61,705 △1,098 △1.7

Time

35,127 34,643 △484 △1.4

Spot

27,675 27,062 △613 △2.2

FY06 Apr.-Dec. FY07 Apr.-Dec. Decrease % Total

184,251 180,000 △4,251 △2.3

Time

103,098 100,859 △2,238 △2.2

Spot

81,153 79,140 △2,012 △2.5

（Unit : Millions of yen) （Unit : Millions of yen) 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000 FY06 FY07

Spot Time

10000 20000 30000 40000 50000 60000 70000 FY06 FY07

Spot Time

Spot Sales(Apr.-Dec.)

FY07 Share (%) FY 06 Share (%)

1 Cosmetics/ Toiletries 8.4 △ 11.7Cosmetics/ Toiletries 9.3 △ 2.5 2 Electronic equipment 8.4 △ 11.2Electronic equipment 9.2 3.7 3 Transportation/ Telecommunications 7.3 0.9Automobile 8.0 △ 4.1 4 Pharmaceutical 7.2 18.5Transportation/ Telecommunications 7.1 △ 1.7 5 Non-alcohol 6.7 △ 7.1Non-alcohol 7.0 13.4 6 Automobile 6.6 △ 20.3Alcohol 6.8 △ 5.6 7 Alcohol 6.5 △ 5.9Finance 6.7 △ 27.3 8 Finance 4.8 △ 29.7Pharmaceutical 5.9 △ 6.5 9 Box-office/ Entertainment 4.6 14.6Sports/Hobby goods 4.3 36.6 10 Service 4.6 30.4Box-office/ Entertainment 3.9 13.3 Other 34.9 6.9Other 31.8 △ 9.6 Total 100 △ 2.5Total 100.0 △ 6.6

Spot Sales(Oct.-Dec.)

FY07 Share (%) FY 06 Share (%)

1 Electronic equipment 10.5 △ 9.2 Electronic equipment 11.3 △ 4.8 2 Pharmaceutical 8.7 30.3 Cosmetics/ Toiletries 8.9 △ 2.7 3 Transportation/ Telecommunications 8.4 2.8Automobile 8.2 △ 3.1 4 Cosmetics/ Toiletries 7.7 △ 15.1Transportation/ Telecommunications 8.0 23.8 5 Automobile 5.7 △ 32.8Pharmaceutical 6.5 4.9 6 Box-office/ Entertainment 5.6 60.9Finance 5.6 △ 43.1 7 Alcohol 4.8 △ 10.2Sports/Hobby goods 5.5 44.5 8 Sports/Hobby goods 4.8 △ 15.1Alcohol 5.3 △ 8.7 9 Non-alcohol 4.8 3.1Non-alcohol 4.5 13.7 10 Finance 4.8 △ 16.0Precision Apparatus/ Business Equipment 4.1 △ 1.0 Other 34.3 4.6Other 32.0 △ 9.3 Total 100 △ 2.2Total 100 △ 5.6

Events / Content Business Sales

（ Non-consolidated ）

（Unit : Millions of yen)

Business type FY07 Apr.-Dec. (%) FY07 Oct.-Dec. (%) Events Events 4,142 △9.3 1,131 △34.0 TV BS･CS ・ CATV･ Others 3,486 13.5 1,216 18.9 Contents Rights 1,553 6.1 615 3.7 Overseas Sales 1,052 32.3 178 △36.4 Media commerce 6,455 65.6 2,370 49.2 Publications 729 △31.9 365 △13.9 Movies 8,268 26.5 4,921 67.3 Others 410 177.0 82 △32.7 Total 26,095 21.1 10,877 25.2

Production Costs (Non-consolidated)

（Unit : Millions of yen)

FY 06 Oct.-Dec. FY 07 Oct.-Dec. Increase %

Production cost

27,703 28,435 732 2.6

FY06 Apr.-Dec. FY07 Apr.-Dec. Increase %

Production cost

83,470 85,094 1,623 1.9

20000 40000 60000 80000 100000 FY06 FY07 Apr.-Dec.

Forecast for FY2007

Consolidated Net sales Operating income Recurring profit Net income As of

• Nov. 2007

335,000 20,000 23,500 10,000

As of May 2007

335,500 18,500 21,500 11,500

Non- Consolidated Net sales Operating income Recurring profit Net income As of Nov. 2007

286,000 13,000 15,500 6,500

As of May 2007

287,000 10,500 12,500 7,000

As of Nov. 1, 2007 1H results 2H FY Time △2.6% △2.6% △2.6% Spot △2.6% △1.6% △2.1% Production cost 1.6% 5.1% 3.3%

（Unit : Millions of yen)

As of May 17, 2007 1H 2H FY Time △3.9% 2.0% △0.9% Spot △1.2% 2.5% 0.7% Production cost 4.1% 9.5% 6.8%

(Preconditions)

Forecast for Business Segments

Television Broadcasting Cultural Activities Other Business Subtotal Elimination /Corporate Consolidated

Net Sales

New Forecast

260,100 69,600 14,800 344,500 △9,500 335,000

As of May 17, 2007

265,900 62,600 14,700 343,200 △7,700 335,500

Operating Income

New Forecast

26,000 4,600 2,300 32,900 △12,900 20,000

As of May 17, 2007

26,000 4,700 2,500 33,200 △14,700 18,500

(Unit : Millions of yen)

Forecast for CAPEX and Depreciation

〈 Consolidated 〉

CAPEX Depreciation FY 2007 4.6 (6.8) 12.6 〈 Non-consolidated 〉 CAPEX Depreciation FY 2007 3.8 (6.3) 11.9 FY 2008 7.4 (9.7) 10.5 (12.4) FY 2009 9.5 (8.9) 10.1 (12.0) FY 2010 8.7 (8.4) 10.7 (11.5) FY 2011 7.5 (6.0) 10.3 (10.4)

(Unit : Billions of yen) (Unit : Billions of yen)

Aims of Medium-Term Management Plan

No.1 Growth in Non-Broadcasting Revenue

Improving Viewer Ratings

• Successful phased restructuring of timetables

Result: No. 2 for all day, golden, prime and non-prime times in the second half of 2007 Result: No.1 for all day, prime and non-prime times; No. 2 for golden time for January 2008

• Ratings increase seen for all viewing time periods including all day, golden,

prime and non-prime times

• Spot shares jump from 22.2% to 23.2% (October through December)
• Obtaining new sponsors

Significant ratings increase of core targets

Strong revenue from spot advertising (year-on-year increase of 6.3% in December)

• ALWAYS—Sunset on Third Street 2: box office sales ¥4.56 billion
• A Tale of Mari and Three Puppies: box office sales ¥3 billion
• Flowers in the Shadows: strong box office sales of more than ¥0.7 billion two weeks into

release

• L change the WorLd: Simultaneous release on February 9 in Japan, Korea, Taiwan, Hong

Kong and Thailand– A first in Japanese film history.Box office sales more than ¥1 billion

• Revenue: Approximately ¥6.455 billion (year-on-year increase of 65.6%)
• Profit: Approximately ¥1.158 billion (year-on-year increase of 102.4%)
• NitteleSeven: Midnight program “NitteleSeven To be Continued on the Internet”

commenced in January

Aim at integrating media and consumption 79.1% in 2005 → 78.4 % in 2006 → 76.2 % in 2007

Ratio of broadcasting revenue in sales: Medium-Term Management Plan goal of 74.2％

Strong Non-Broadcasting Revenue

Movie business producing string of blockbuster hits Steady progress toward business portfolio reform

Media commerce business continuing growth (First three quarters - April through December)

Outline of Shopping Portal Business

Shopping portal site ＥＣ sites Other ＥＣ sites Stores Other stores

customer payment customer payment

Program site, Events

e-mail bulletins TV programs

Introducing items on program Uncovering recommendations Rankings Cooperative community viewers→consumers

• ne shot customer→repeat customer

viewers

Developing original items for sale Program information

From Viewers to Consumers

Yomiuri Giants Games

→ Medium to long-term strategy to acquire young fans

（night games 38→34 matches）

→Penetration of BS digital receivers（32 million units）

• Expand Internet delivery
• Broadcast extended segment of Yomiuri Giants games
• n “1-SEG” independent broadcasting
• Increase day games（２→７games）
• Extend broadcast times for BS broadcasting

Cross-Media with Nike

“RUN! With YOUR NEW FRIENDS”

A running tool called “Nike+” was created through collaboration between Nike and

• iPod. A cross-media promotional plan is underway where NTV digital content

including NTV2 will enhance the joy of running using “Nike+” !

RUN! With YOUR NEW FRIENDS Web site

Examples:

☆Young comedian duo competition! Racing across Japan! Blog updated almost everyday + video content (NTV2) ☆Video title contest ☆Winner of the “RUNNING Competition with Fans” to appear in NTV programs such as NTV Genic and DANCING SANMA PALACE (NTV), etc. Tentative promotional period: December 12, 2007 – end of March 2008

Examples:

☆Young comedian duo competition! Racing across Japan! Blog updated almost everyday + video content (NTV2) ☆Video title contest ☆Winner of the “RUNNING Competition with Fans” to appear in NTV programs such as NTV Genic and DANCING SANMA PALACE (NTV), etc. Tentative promotional period: December 12, 2007 – end of March 2008 Nike+ Official site nikeplus.nike.com

Unique NTV Web promotional plans have resulted in new advertisements! Unique NTV Web promotional plans have resulted in new advertisements!

*What’s “Nike+”？

Use it with “iPod nano” while jogging. Just set sensor into shoe and insert receiver into iPod nano. Enjoy music while running and even check (through display or earphones) running pace, distance covered and calories consumed. Data will be automatically stored at nikeplus.com where you can compete with your friends and people around the world!

Multicontact-Point Strategy & Cross-Media Advertising

“1-SEG” BS Merchandise DVDs Games

Content

Internet Events Publishing

Movies

Street/In-train monitors VoD Domestic sales Overseas sales Television shopping Format sales CS PC Web site Mobile Web site E- commerce CATV “1-SEG” Internet BS/CS Broadcasts Terrestrial Broadcast Terrestrial Broadcast BS/CS Broadcasts Internet “1-SEG”

＋ ＋ ＋

Development of cross-media advertisements to meet sponsor needs

Increase revenue !!

Advertisements Sales promotion

Multicontact-Point Strategy Cross-Media Advertising

Programming Strategy

Make headway on structural reform to timetable

Analysis of Timetable

＜January 2008＞

1st week #1 for All day and Non-Prime time 2nd week Quadruple crown titles!! 3rd week #1 for All day and Non-prime 5th week Triple crown titles(#1 for All day, Prime and Golden!! )

Success of timetable reforms

Viewer Ratings

Source : video research

NTV TBS CX EX TX HUT

All day 8.5 7.5 8.9 8.2 3.8 43.6

Last year 8.3 7.8 9.1 7.7 3.8 43.0

Prime time 12.9 11.0 14.0 12.9 7.8 64.9

Last year 12.2 12.7 14.4 12.6 7.8 65.3

Golden time 12.8 11.2 14.1 12.2 8.2 66.3

Last year 11.9 13.0 14.0 11.9 8.4 66.2

Non-prime time 7.3 6.5 7.4 6.9 2.6 37.5

Last year 7.2 6.3 7.6 6.3 2.6 36.7

Second half （Oct. 1st 2007～Feb. 3rd 2008)

Viewer Ratings

Source : video research

NTV TBS CX EX TX HUT

All day 9.2 7.7 8.8 8.0 4.0 45.1

Last year 8.9 8.1 8.9 7.9 3.9 44.3

Prime time 13.4 11.4 13.2 12.5 7.7 65.4

Last year 12.5 13.0 13.7 12.8 7.6 65.7

Golden time 13.2 11.5 13.6 12.0 8.1 66.8

Last year 12.2 12.8 13.7 12.1 8.1 66.6

Non-prime time 8.0 6.6 7.5 6.8 2.9 39.2

Last year 7.9 6.7 7.5 6.5 2.8 38.2

January 2008

Solid Performance Factors

Programming Reforms April 2008

Final phase of structural reform of timetable Final phase of structural reform of timetable

Programming Topics

Sports Specials

Title Day Tokyo Marathon 2008

• Feb. 17th

26th Yokohama International Women’s Ekiden

• Feb. 24th

RICOH OPENING SERIES JAPAN 2008

• Mar. 22nd -25th

Sports specials Sports specials Beijing Olympic Beijing Olympic Item Day Hour （Japanese Time） Swimming final (Men’s 200M breaststroke semi-final etc）

Aug.13th 11:00～12:50

Judo ・qualifiers （Men’s 90Kg ,Women’s 70Kg ）

Aug.13th 13:00～17:30

Track race ・Women’s marathon

Aug.17th 8:30～12:30

Gymnastic ・final （Men’s parallel bars etc）

Aug.19th 19:00～21:15

Softball ・semi-final / Bronze medal match

Aug.20th 10:30～15:00/18:00～20:00

Main Movie Lineup for FY2007

Title

Release Date

Distributor

Head

• rganizer

Tokyo Tower

• Mom & Me, and sometimes

Dad-

• Apr. 14,

2007 SHOCHIKU 2007 box-office hit with revenue of 1.8 billion yen. DVD released October 24th . Head

• rganizer

Maiko Haaaan!!!

• Jun. 16,

2007 TOHO Box-office hit with revenue of 2 billion yen. DVD released December 12th (Rental: Dec.7th) Head

• rganizer

ALWAYS

• Sunset on

Third Street 2

• Nov. 3,

2007 TOHO Sequel to “ALWAYS” Attracting more than 3.7 million moviegoers. Box-office hit with revenue of over 4.5 billion yen. Head

• rganizer

A Tale of Mari and Three Puppies

• Dec. 8,

2007 TOHO TOHO’s new year movie based on real-life story box-office hit with revenue of 3.0 billion yen since Feb. 4th Head

• rganizer

Ｌ change the WorLd

• Feb. 9,

2008 WARNER BROS. Spin-off of “DEATH NOTE” Preview same day in Japan, Korea, Hong-Kong, Taiwan and Thailand Head

• rganizer

Sweet Rain Shinigami no Seido

• Mar. 22,

2008 WARNER BROS. Original Story: by Koutarou Isaka Starring ：Takeshi Kaneshiro, Manami Konishi, Junko Fuji Kagehinata ni Saku

• Jan. 26,

2008 TOHO The novelistic film adaptation of Gekidan Hitori box-office hit with revenue of 6.7 billion yen since Feb. 7th