Results Meeting for FY2007 (April 1, 2007 March 31, 2008) May - - PowerPoint PPT Presentation

Results Meeting for FY2007

(April 1, 2007 – March 31, 2008)

May 20, 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

FY2007 Results ........................................................................ P 5 Operating Results.................................................................... P 6 TV Broadcasting Sales............................................................ P 8 Events/Content Business Sales............................................. P 9 Production Costs..................................................................... P 10 Financial Highlights of Group Companies .......................... P 11 FY2008 Forecast...................................................................... P 12 Medium-term Management Plan ............................................ P 23 Specific Recent Activities....................................................... P 26 Dividend Policy........................................................................ P 33 Programming Strategy............................................................ P 35 Future Programming Directions ............................................ P 38 Main Movie Lineup for FY2008 ............................................... P 39

FY2007 Results and FY2008 Forecast

FY2007 Results

Operating Results

(Consolidated)

FY 06 FY 07 ％

Net sales

343,651 342,188 △0.4

Operating income

30,344 23,076 △24.0

Recurring profit

34,142 26,705 △21.8

Net income

18,331 10,625 △42.0 FY 06 Oct.-Mar. FY 07 Oct.-Mar. ％

Net sales

177,781 176,683 △0.6

Operating income

17,872 12,618 △29.3

Recurring profit

19,514 14,040 △28.0

Net income

10,561 6,292 △40.4

（Unit : Millions of yen)

Operating Results

(Non-consolidated)

FY 06 FY 07 ％

Net sales

288,636 291,223 0.9

Operating income

20,898 16,172 △22.6

Recurring profit

23,863 18,516 △22.4

Net income

12,726 6,437 △49.4 FY 06 Oct.-Mar. FY 07 Oct.-Mar. ％

Net sales

147,491 150,757 2.2

Operating income

12,951 9,635 △25.6

Recurring profit

13,860 10,442 △24.6

Net income

6,875 4,387 △36.1

（Unit : Millions of yen)

TV Broadcasting Sales

(Non-consolidated)

FY 06 FY 07

In/ Decrease % Total 246,524 242,553 △3,971 △1.6 Time 138,219 136,981 △1,238 △0.9 Spot 108,305 105,572 △2,732 △2.5

FY 06 Oct.-Mar. FY 07 Oct.-Mar.

In/ Decrease % Total 125,076 124,258 △818 △0.6 Time 70,249 70,765 516 0.7 Spot 54,828 53,494 △1,334 △2.4

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

100000 200000 300000 FY06 FY07

Spot Time

50000 100000 150000 FY06 Oct.-Mar. FY07 Oct.-Mar.

Spot Time

Events / Content Business Sales

(Non-consolidated)

（Unit : Millions of yen)

Business type FY 07 % FY 07 Oct.-Mar. % Events Events 5,431 0.6 2,420 △5.0 TV BS･CS ･ CATV･Others 4,724 14.6 2,454 18.2 Content Rights 2,198 2.8 1,260 △0.6 Overseas Sales 1,248 15.7 374 △33.5 Media Commerce 8,019 38.8 3,934 13.4 Publications 995 △25.8 631 △9.0 Movies 11,540 42.3 8,193 81.5 Others 496 98.4 168 △25.0 Total 34,651 22.8 19,434 26.6

Production Costs

(Non-consolidated)

FY 06 FY 07

In/Decrease % Production cost

110,644 115,172 4,527 4.1 FY 06 Oct.-Mar. FY 07 Oct.- Mar.

In/Decrease % Production cost

54,877 58,514 3,637 6.6

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

10000 20000 30000 40000 50000 60000

FY06Oct.- Mar. FY07 Oct.- Mar.

20000 40000 60000 80000 100000 120000 FY06 FY07

FY2008 Forecast

Consolidated Net Sales Operating Income Recurring Profit Net Income

1st Half 171,500 6,700 8,800 4,500 Fiscal year 346,000 21,700 25,300 13,700

Non- consolidated Net Sales Operating Income Recurring Profit Net Income

1st Half 145,700 3,500 5,300 3,000 Fiscal year 295,000 14,700 17,500 10,000

yoy First Half Second Half Fiscal Year

Time 2.5% △1.0% 0.7% Spot △1.0% △1.0% △1.0% Production Cost 9.2% △4.5% 2.3% Precondition

（Unit : Millions of yen)

* (Ref.) Managerial accounting basis

Dividends

Interim Period End of Period Yearly FY 2008

90 110 200

(Ref.)

FY 2007

75 105 180

(Unit: Yen)

*Includes commemorative dividend of 30 yen

Forecast for Business Segments

Half period

Television Broadcasting Cultural Activities Other Business Elimination /Corporate Consolidated

Net Sales

129,500 39,200 8,300 △5,500 171,500

Operating Income

9,200 3,900 1,000 △7,400 6,700

（Unit : Millions of yen)

Fiscal year

Television Broadcasting Cultural Activities Other Business Elimination /Corporate Consolidated

Net Sales

262,300 78,000 16,500 △10,800 346,000

Operating Income

27,000 7,000 2,400 △14,700 21,700

Reference Materials for Financial Results and Forecast

Segment Results

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 Communicatio ns

Net Sales FY07

262,369 73,999 15,145 351,514 △9,326 342,188

FY06

267,903 69,411 14,536 351,851 △8,199 343,651

In/ Decrease

△5,534 4,588 609 △336 △1,127 △1,463

Operating Income FY07

27,655 6,292 2,339 36,287 △13,210 23,076

FY06

33,842 8,193 1,323 43,359 △13,015 30,344

In/ Decrease

△6,187 △1,901 1,016 △7,072 △195 △7,268

（Unit : Millions of yen)

Spot Sales (FY2007)

FY 07 Share % FY 06 Share %) 1 Transportation/ Telecommunication 8.5 6.9 Automobile 8.8 △ 1.3 2 Electronic Equipment 8.0 △11.1 Electronic Equipment 8.7 △ 0.3 3 Cosmetics/Toiletries 8.0 △5.5 Cosmetics/Toiletries 8.2 △ 8.0 4 Automobile 7.4 △18.4 Transportation/ Telecommunication 7.7 4.7 5 Pharmaceutical 6.9 19.1 Alcohol 6.7 △ 2.1 6 Alcohol 6.4 △6.8 Finance 6.4 △28.8 7 Non-alcohol 6.0 △7.3 Non-alcohol 6.3 9.0 8 Finance 5.0 △24.4 Pharmaceutical 5.6 △ 3.9 9 Service 4.7 24.9 Sports/Hobby goods 4.1 33.8 10 Box-office /Entertainment 4.7 20.1 Box-office /Entertainment 3.8 9.7 Other 34.4 0.5 Other 33.7 △ 9.0 Total 100.0 Total 100.0

Spot Sales (Oct.- Mar.)

FY07 Oct.-Mar. Share % FY 06 Oct.-Mar. Share % 1 Transportation/ Telecommunications 10.1 12.2 Automobile 9.7 1.5 2 Electronic Equipment 8.7 △9.8 Electronic Equipment 9.3 △ 8.1 3 Automobile 7.8 △22.3 Transportation/ Telecommunications 8.8 22.9 4 Pharmaceutical 7.4 26.5 Cosmetics/Toiletries 6.9 △ 14.5 5 Cosmetics/Toiletries 7.2 0.5 Alcohol 5.9 0.8 6 Alcohol 5.5 △9.7 Finance 5.7 △ 38.5 7 Box-office/ Entertainment 5.2 50.0 Pharmaceutical 5.6 5.8 8 Finance 5.2 △11.2 Sports/Hobby goods 4.6 36.1 9 Service 4.6 28.2 Non-alcohol 4.3 1.7 10 Non-alcohol 4.3 △2.4 Service 3.5 3.9 Other 34.0 △5.9 Other 35.7 △ 0.6 Total 100.0 Total 100.0

CAPEX and Depreciation

Consolidated

CAPEX Depreciation FY 2007 Results 5.2 12.8 FY 2008 8.2 11.6

Non-consolidated

CAPEX Depreciation FY 2007 Results 4.1 11.5 FY 2008 7.4 10.5 FY 2009 9.5 10.1 FY 2010 8.7 10.7 FY 2011 7.5 10.3 FY 2012 8.4 10.2

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

Medium-term Management Plan and Future Strategies

Basic Management Concept Basic Management Concept

The NTV Group will continue to develop as the strongest comprehensive media company with broadcasting business at its core

Long-term Targets

(1)Secure place as the No.1 provider of content in terms of both quality and quantity (2)Pursue a “multicontact-point strategy” to secure leadership in multiuse deployment (3)Expand businesses tied with terrestrial broadcasting to increase and diversify revenue sources (4)Achieve No.1 level of production efficiency in the media industry

Long-term Management Concept Mid-term Targets

(1)No.1 in Viewer Ratings & Broadcasting Revenue (3) No.1 in Content Delivery (2)No.1 Growth Rate of Non-Broadcasting Revenue (4) No.1 in Delivering Customer Satisfaction

Results of FY2005 Results of FY2005-

• 2007

2007

・Improvement in viewer ratings ・Increase in non-broadcasting revenue

2 4 6 8 10

（Unit: Billions of yen）

Summary of non-broadcasting businesses

FY2005 FY 2007 Mid‐term target 113.0 Result Result 69.4 80.3 69.4 80.3

FY2005 FY2007 FY2005 FY2007 Film Business Television‐based Shopping 1.8 3.8 8.0 11.5

Target Numbers for Medium Target Numbers for Medium-

• term

term Management Plan Management Plan

<Unit: Billions of yen>

Consolidated Basis

FY2007 FY2010 (Results) (Target) Comparison

Net Sales

TV Broadcasting Segment Broadcasting Sales Non‐broadcasting Sales Recurring Profit (RP Margin) TV Broadcasting Segment Sales Ratio 342.2 261.9 242.6 26.7 7.8 77% 80.3 427.0 310.0 281.0 117.0 50.0 11.7 +84.8 +48.1 +38.4 +36.7 +23.3 +3.9 ▲4p 73% 426.0 316.0 280.0 110.0 46.0 10.8 74%

FY2009

Previous Plan for Reference

FY2010 （Target）

Basic Dividend Payout Ratio 50% (Non‐consolidated) (Floor annual dividend per share: 180 yen)

Italian version of My First Errand aired in December 2007 Second NTV Shop (Nittele-ya) opened in Tokyo Station

Gokusen Spinoff: Record number of viewings in the shortest amount of time; already secured sponsors Cross-media Sukkiri Man commercial: generated revenue from promotion budgets “1-SEG” independent broadcasting; KDDI “1-SEG” Premium Night Games Full-fledged NitteleSeven launched; Marina Watanabe original bag promotion VoD business: VAP Inc. and Forecast Communications Inc. establish LLP DVD sales of ALWAYS—Sunset on Third Street 2 and L change the WorLd Super lineup starts with Ponyo on the Cliff by the Sea, The Sky Crawlers and Twentieth Century Boys Last phase of structural changes to timetable

• No. 2 across all viewing time periods for viewer ratings in 2008 and fiscal 2008

Substantially increased core target viewer ratings April spot share increased to 23.3% (up 1.1% from last year) Large-scale program (similar to “24-Hour TV”) broadcast for 13 hours on June 8th with “eco” as its theme

Specific Recent Activities

• No. 1 growth rate
• f non-

broadcasting revenue

• No. 1 in content

delivery

Original drama version

On PCs, mobile phones… Integrating the same feel and atmosphere

Topping 1 million viewings within the first month! Now delivering all the favorites!! Trend toward increased viewings via mobile phones What is a spinoff? A side-story derived from a drama. NTV has led the industry in delivering spinoff dramas via the Internet since Bambino (April 2007).

On home TVs

Spinoff

Net versions provide background stories not explored in the original drama, pulling in core Gokusen fans through all media platforms.

Gokusen Spinoff!

Spinoffs and Original Infomercials

New sales plans based on spinoffs start with Gokusen (April 2008) Video screen banners + Producing original infomercials Product giveaways Sponsor displays

What is an infomercial?

A new advertising tool that delivers a stronger viewer impact, in this case involving collaboration between the set and sponsors of Gokusen

• 1. Shoot spots with Gokusen staff on the Gokusen set
• 2. Leverage the flexibility of the Internet to create short frames, unfettered by the normal 15-second minimum slot
• 3. Shoot spots at Gokusen spinoff locations, maintaining consistency throughout the content

What is a product giveaway?

Following the original infomercial, a cast member announces the keyword of the week. Viewers who send in a postcard indicating that keyword earn a chance to receive one of the products presented that week.

Sales results…

Gokusen signed on sponsors Meiji Seika Kaisha, Ltd. and Kao Corporation. The two companies alternate weeks, airing original infomercials before and after the weekly spinoff broadcast.

Sales content

+ +

Internet movie aired on NTV2 tied with spot ads on terrestrial TV! Enhanced commercials with mysterious Sukkiri Man appearances across various media

• platforms. NTV also produced spot commercials. The new business model generates

revenue from Kirin Beverage’s promotion budget. Also links to mixi. Sukkiri Man page

http://www.sukkiri-man.jp/

Three Sukkiri Girls’ mixi page Official NUDA site on mixi

（CLUB NUDA） Link-up with mixi!

Skateboard version Double Dutch version BMX version Basketball version Product introduction “Who is Sukkiri Man?” quiz

Sukkiri Man (Kirin Beverage/KIRIN NUDA)

and more… from spot commercials to the Internet! Net movies (four versions)

Gain familiarity through mixi Video intro in diary

Terrestrial spot commercial

Three Sukkiri Girls as navigators

“1-SEG” Independent Broadcasting

☆ SBO display in top left corner enlarged only for “1-SEG” ☆ Extended broadcasts available only via “1-SEG” ☆ Original footage aired only via “1-SEG” (Original content aired during terrestrial TV commercial spots)

An Industry First!

(Broadcast on May 7 and 8 as KDDI’s “1-SEG” Premium Night Games)

Building new business models

Number of “1-SEG”-compatible mobile phones shipped: 25.87 million (as of February 29, 2008)

Kick-Off!

Themed on the “integration of media and consumption,” in December 2007 six companies, including NTV, SEVEN & i HLDGS. Co., Ltd. and DENTSU INC., jointly invested in the establishment of NitteleSeven Co., Ltd., which began operations in April 2008.

NitteleSeven portal site

Actual stores

"Infocommerce" program: Megami no Ichiba "Infocommerce" program: Megami no Ichiba

E-commerce site

Introducing products through lifestyle information variety shows…

Leads viewers Leads viewers

• 1. Kaimono Daisuki! Megami no Ichiba (Marche) starts as regular program on

Fridays from 16:00 to 16:30 p.m. (local Kanto programming) http://www.ntv7.jp/

Proactively expanding advertising and marketing in cross-media operations

• 3. Advertising and marketing business
• 2. Development of original NitteleSeven products

An entertaining portal linking TV, performers, products and stores Kaimono Daisuki! Megami no Ichiba is sponsored by SEVEN & i HLDGS. Co., Ltd. Group Products introduced on the program are available throughout Japan via the extensive SEVEN & i HLDGS. Co., Ltd. sales network of 12,000 Seven-Eleven and 180 Ito-Yokado stores. The first business model to link media and actual retail The first business model to link media and actual retail

• utlets
• utlets

NitteleSeven receives affiliate revenue corresponding to product sales. Developing various products in collaboration with performers and celebrities Introducing original NitteleSeven products on Megami no Ichiba and marketing them in Seven-Eleven and Ito-Yokado stores

Marina Watanabe Marina Watanabe’ ’s multi s multi-

• bag (

bag (¥ ¥24,800) 24,800)

TV talent Marina Watanabe developed this bag in cooperation with NitteleSeven before the birth of her baby. Now accepting advanced orders on the NitteleSeven site.

Selling products…

E-commerce site E-commerce site

Video Delivery Business: New LLP

Newly established LLP* of VAP Inc. and Forecast Communications Inc. targets on- demand delivery business

• V. F. Partners

1st Video Delivery: RD Synthetic Brain Research Lab animation, D.N. Dream Partnership

investment Terrestrial broadcast via NTV late Tuesday nights (12:59 AM)

On-Demand Service

• PC-TV GyaO: Free video delivery

service for PC viewers from April 9

• GyaONEXT: Flat-rate video delivery

service for TV viewers from April 16

• Show Time: Subscriber-style delivery

service for PC viewers from April 16

• Mobile GyaO: Free video delivery

service for mobile phone viewers from April 16

* Great results from the premier aired on April 9: Ranked No. 2 in the overall category of “Number of Replays for GyaO” and No. 1 in overall animation category

*LLP = Limited Liability Partnership

3rd Video Delivery: BUZZER BEATER now airing on Anime Full Channel, etc. 2nd Video Delivery: Ohran High School Host Club now airing on PC TV GyaO, etc.,

Dividend Policy Dividend Policy

Basic Dividend Payout Ratio

33%→50%

(Floor annual dividend per share: 50 yen→180 yen)

FY 07・・・・・180 yen

(Includes commemorative dividend of 30 yen)

FY 08・・・・・200 yen (forecast)

Programming Strategy

Programming Strategy

Make headway on structural reform to timetable

Analysis of Timetable

＜Annual viewer ratings for 2008＞

＊Up to 2nd week of May in Kanto Region

All Day 8.6% (yoy +0.2%) Difference between CX is ▲0.2% (yoy +0.2%) Prime Time 12.9% (yoy +0.5%) Difference between CX is ▲0.5% (yoy +0.9%)

＜April – May 2008＞

2nd week of April Triple crown title 3rd and 4th weeks of April #1 for Golden and Prime times Month of April #1 for Golden time 2nd week of May #1 for All Day and Non-Prime times

Validation of Programming Reforms

Aim for Further Transformation of Timetable

Future Programming Directions

Main Movie Lineup for FY2008

Title

Release Date

Distributor

Detective Conan

April 19th TOHO 12th series Senritsu no Full Score

HIDDEN FORTRESS: THE LAST PRINCESS

May 10th TOHO Shown at International Trade Fair in Cannes Scheduled for release overseas (mainly Asia)

ANPANMAN

July 12th

Tokyo Theatre Media Box

ANPANMAN 20th anniversary NTV 55th anniversary film Yousei Rinrin no Himitsu

Ponyo on the Cliff by the Sea

July 19th TOHO Latest production by Hayao Miyazaki, Studio Ghibli

Cooperative Organizer

The Sky Crawlers

August 2nd

WARNER BROS.

NTV 55th anniversary film Latest production by Mamoru Oshii

Head Organizer

Twentieth Century Boys1

August 30th TOHO NTV 55th anniversary film Live-action version of popular comic by Naoki Urasawa

Head Organizer

252:Signal of Life

Scheduled for December 6th WARNER BROS. NTV 55th anniversary film by Nobuo Mizuta (NTV employee) known for directing Maiko Haaaan!!

Head Organizer

K-20

Late December TOHO NTV 55th anniversary film Action movie from staff of ALWAYS

Head Organizer

Twentieth Century Boys2

Early spring TOHO NTV 55th anniversary film 2nd part of trilogy

Cooperative Organizer

YATTER MAN

Late March NIKKATSU, SHOCHIKU Live-action version of traditional animation

Supplementary Materials Regarding Programming Strategy

Viewer Ratings

出所：ビデオリサーチ

NTV TBS CX EX TX HUT

All Day 8.6 7.6 8.8 7.8 3.8 43.8

Last year 8.4 7.9 8.8 7.6 3.8 43.2

Prime time 12.9 11.5 13.4 12.1 7.8 64.9

Last year 12.4 12.6 13.8 11.9 7.8 65.0

Golden time 12.7 11.7 13.6 11.5 8.2 66.4

Last year 12.2 12.5 13.8 11.1 8.3 65.9

Non-prime time 7.3 6.4 7.4 6.6 2.6 37.7

Last year 7.2 6.5 7.4 6.4 2.6 37.0

Yearly 2008 (12/31/2007 - 5/11/2008)

Viewer Ratings

出所：ビデオリサーチ

NTV TBS CX EX TX HUT

All Day 8.2 7.3 8.5 7.9 3.5 42.8

Last year 8.1 7.5 8.7 7.7 3.7 42.7

Prime time 12.9 11.3 13.1 12.3 7.3 64.2

Last year 12.2 11.9 13.5 12.3 7.8 64.8

Golden time 12.8 11.3 13.1 11.7 7.7 65.7

Last year 12.3 11.9 13.4 11.7 8.3 65.8

Non-prime time 6.9 6.2 7.2 6.6 2.5 36.6

Last year 6.9 6.2 7.3 6.4 2.6 36.4

Fiscal Yearly 2008 (3/31/2008-5/11/2008)

Solid Performances

Programming Topics

Beijing 2008 Olympic Games

Category Date Competition Time （JST） 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 8:30～12:20

Gymnastics 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

DVDs

Title

Release Date Selling Agency

Drama

Yuukan Club

April 23rd VAP

Popular TV drama to be sold as boxed set Movie

ALWAYS

• Sunset on Third Street 2

May 21st VAP

Deluxe edition with special features, standard edition, etc. Movie

A Tale of Mari and Three Puppies

June 13th Amuse

Sales date and rental date of special edition and standard edition scheduled for same date Movie

L change the WorLd

June 25th VAP

Sales date and rental date of triple disc DVD and standard edition scheduled for same date Movie

Kagehinata ni Saku

July 16th VAP

Double disc treasured edition and standard edition Rental: July 11th Distributor: TOHO

• Drama SAITOU san and movies currently in theaters are scheduled for

release as DVDs in 1st half

• Movies released in 1st half are scheduled for release as DVDs in 2nd half