Results Meeting for the Interim Period ended September 30, 2007 - - PowerPoint PPT Presentation

Results Meeting for the Interim Period ended September 30, 2007

(April 1 – September 30, 2007) November 20, 2007

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.

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Result for the Interim Period....................................................P 4 Operating Result .......................................................................P 5 Net Sales(Non-consolidated)...................................................P 7 Production Costs(Non-consolidated).....................................P 10 Forecast for FY2007..................................................................P 11 Forecast for CAPEX and Depreciation ...................................P 13 Aims of Medium-term Management Plan ...............................P 15 Specifics of Current Measures ................................................P 16 Programming Strategy .............................................................P 23 Main Movie Lineup for FY2007 ................................................P 29

Table of Contents

Results for the Interim Period

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Operating Results

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Consolidated FY 06 1H FY 07 1H % Net sales

165,870 165,505 △ 0.22

Operating income

12,472 10,458 △16.15

Recurring profit

14,628 12,665 △13.42

Net income

7,770 4,333 △44.23 Non- Consolidated

FY 06 1H FY 07 1H % Net sales

141,145 140,466 △0.5

Operating income

7,947 6,537 △17.7

Recurring profit

10,003 8,074 △19.3

Net income

5,851 2,025 △65.0

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

Segment Results

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（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

FY07

128,414 34,229 7,843 170,487 ▲ 4,981 165,505

FY06

131,603 30,893 7,781 170,278 ▲ 4,408 165,870

Net sales In/ Decrease

▲3,188 3,335 61 208 ▲ 573 ▲364

FY07

12,596 3,337 1,257 17,191 ▲6,732 10,458

FY06

15,486 2,650 1,020 19,157 ▲6,684 12,472

Operating income In/ Decrease

▲2,890 687 237 ▲1,966 ▲ 48 ▲2,014

TV Broadcasting Sales

(Non-consolidated)

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FY06 1H FY07 1H Decrease % Total 121,448 118,295 △3,153 △2.6 Time 67,970 66,216 △1,754 △2.6 Spot 53,447 52,078 △1,399 △2.6 FY06 July-Sep FY07 July-Sept Decrease % Total 57,836 56,854 △982 △1.69 Time 34,360 33,591 △769 △2.3 Spot 23,445 23,263 △182 △0.8

（Unit : Millions of yen) （Unit : Millions of yen) 20000 40000 60000 80000 100000 120000 140000 FY06 1H FY07 1H spot time 10000 20000 30000 40000 50000 60000 70000 FY06 Jul.-Sep. FY07 Jul.-Sep. spot time

Spot Sales(Apr.-Sep.)

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FY07 1H Share (%) FY 06 1H Share (%)

1 Cosmetics/ Toiletries

8.8 △ 10.0 Cosmetics/

Toiletries

9.5 △ 2.4

2 Non-alcohol

7.7 △ 9.9 Non-alcohol 8.3 13.3

3 Alcohol

7.4 △ 4.4Electronic

equipment

8.1 10.9

4 Electronic equipment

7.3 △ 12.7Automobile 7.9 △ 4.7

5 Automobile

7.0 △ 13.6Alcohol 7.5 △ 4.4

6 Transportation/ Telecommunications

6.8 △ 0.3Finance 7.2 △ 18.3

7 Pharmaceutical

6.4 11.3Transportation/

Telecommunications

6.6 △ 12.9

8 Service

4.9 21.8Pharmaceutical 5.6 △ 12.3

9 Finance

4.8 △ 35.1Box-office/

Entertainment

4.2 14.4

10 Other Food

4.1 5.4Service 3.9 39.3

Other

34.9 9.2Other 31.1 11.3

Total

100 △ 2.6Total 100 △ 7.1

Spot Sales (Jul.-Sep.)

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FY 07 July-Sep Share (%) FY06 July-Sep Share (%) 1 Cosmetics/ Toiletries 7.9 △ 15.9Cosmetics/ Toiletries 9.3 △ 3.1 2 Automobile 7.6 △ 11.1Automobile 8.5 △ 5.5 3 Transportation/ Telecommunications 6.8 △ 1.1Non-alcohol 7.3 13.1 4 Electronic equipment 6.6 △ 7.6Alcohol 7.1 △ 3.1 5 Alcohol 6.5 △ 9.3Electronic equipment 7.0 7.0 6 Non-alcohol 6.4 △ 13.7Transportation/ Telecommunications 6.8 △ 13.1 7 Pharmaceutical 6.1 24.8Finance 5.7 △ 30.4 8 Service 5.4 19.1Box-office/ Entertainment 5.0 49.6 9 Finance 5.4 △ 5.4Pharmaceutical 4.9 1.6 10 Box-office/ Entertainment 4.1 △ 19.3Service 4.5 26.5 Other 37.2 8.8Other 33.9 △ 8.3 Total 100 △ 0.9Total 100 △ 5.4

Production Costs (Non-consolidated)

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FY06 1H FY07 1H Increase % Production cost 55,767 56,658 890 1.6 FY06 Jul.-Sep. FY07 Jul.-Sep. Increase % Production cost 28,319 28,351 32 0.1

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

Forecast for FY2007

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Consolidated Net sales Operating income Recurring profit Net income

FY07 1H

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

FY06 1H

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

Non- Consolidated Net sales Operating income Recurring profit Net income

FY07 1H

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

FY06 1H

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

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Television Broadcasting Cultural Activities Other Business Subtotal Elimination /Corporate Consolidated

New Forecast

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

Net Sales

As of May 17, 2007

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

New Forecast

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

Operating Income

As of May 17, 2007

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

(Unit : Billions of yen)

Forecast for CAPEX and Depreciation

13 〈 Consolidated 〉

CAPEX Depreciation FY 2007 6.8 12.6 〈 Non-consolidated 〉 CAPEX Depreciation FY 2007 6.3 11.8 FY 2008 9.7 12.4 FY 2009 8.9 12.0 FY 2010 8.4 11.5 FY 2011 6.0 10.4

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

Aims of Medium-term Management Plan

• No. 1 in non-broadcasting

revenue sources

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• No. 1 in

broadcasting sales Licensing business: Format sales of “Magical Brain Power!! ” to Canale 5 (Italy) Yokohama ANPANMAN CHILDREN’S MUSEUM opened Licensing ANPANMAN diapers LLP with NTT DoCoMo Business collaboration with RECRUIT Experiment to obtain coupons via “1-SEG” Obtain special discount movie tickets via “1-SEG” Recording virtual program “Digital Spirit” in Second Life Cross-media drama with NEC: ”Okinawa” “Man” “Run Away” Distribution of animation contents “AKAGI” Revamp NTV2 → Cross-media site Strengthen television-based shopping programs Structural reforms to timetable Personnel exchange with YTV Enhance human resources of AX-ON Develop large-scale programs such as”24-Hour Television” Develop proposed CMs such as “ALWAYS—Sunset on Third Street 2"

• No. 1 in non-

broadcasting revenue sources

• No. 1 in content

delivery

Specifics of Current Measures

NTV & Second Life

■Entire program is shot in our Second Life studio

➣ all cast members on show are avatars ➣ no real studio set exists; whole program is virtually recorded ➣ program shoot is open to general public (i.e.: worldwide users) ➣ users can chat, contribute and participate in program

World’s first program 『Digital Spirit』 （Wednesdays from 25:29)

Why participate in Second Life? TV Programs TV Programs Compatible with virtual 3D space!

Producers Programmers CG designers, etc…

In-house talent can be fully utilized!

Tap into NTV’s human resources:

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Examples of Services on Shiodome Island

• NTV’s character distribution

Touch mascot to find out weather forecast

• Program set duplication
• Program set duplication
• Live talk show at venues

“NTV Genic 2007” girls scheduled to appear

• “1-SEG” distribution
• “1-SEG” distribution
• News floor

Check out latest news on NTV!

• Free TV monitor distribution

Various videos shown

• Program and poster distribution

Take poster or link to Web

Verify new business models

• Draw on corporate SIM
• Commercial products on display

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NTV2 Reforms

Spin-off dramas “Bambino” and “Hotaru no Hikari”

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Cross-media method of NTV2, NTV HP, MY Nittele, terrestrial broadcasting

■NTV2

NEC drama contents

■NTV HP ■MY Nittele

E-mail bulletins

■Terrestrial Broadcasting

・announcement of project during broadcast of ”Digital Spirit” ・”Digital Spirit” in conjunction with “1-SEG” contents （link to drama contents on

Web sites and link to mobile site)

■Miscellaneous

・NTV press releases

E-mail bulletins E-mail bulletins

・top banner ・e-mail bulletins, etc. ・top page mini banner, top text ・mid-page banner, e-mail bulletins, etc.

・e-mail bulletins

（link to drama contents on Web sites and link to mobile site)

Link to drama contents

Cross-media business model Dｒａｍａ 「“Okinawa” “Man” “Run Away”」

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NTV receives NEC’s sales promotion costs for NEC-manufactured mobile phones “FOMA N905i” and “N905iu”… a revolutionary business model !

Combination of a late-night terrestrial broadcasting program with “NTV2” “NTV HP” and “MY Nittele mobile site” NTV, as the terrestrial broadcasting station with the foremost digital platform, has accomplished this “first” in the industry!

On-demand distribution of animation contents ”AKAGI”

“AKAGI”

（broadcast on NTV late night slot Oct. 4, 2005 through March 28, 2006)

Sales of DVDs for “Akagi” positively influenced terrestrial program “Kaiji” by same creator

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Formulation of new business model Increase revenue of new content business content distribution content distribution

USEN Group “GyaO Next” Flat rate distribution for TV “GyaO” Ad-supported free distribution for PC “Mobile GyaO” Free distribution for mobile phones “Showtime” PPV site for PC

revenue

NTT Resonant Communications “Animation Full Channel” PPV site for mobile phone NIFTY “@NIFTY” PPV site for PC

Strategy to maximize content value

Terrestrial broadcast

＋

Internet ＋ “1-SEG”

Development of cross-media advertisements to meet sponsor needs

Increase advertising revenue

Contents

Merchandise DVDs Publishing Royalties E-commerce CS & BS Domestic sales Movies Overseas sales Format sales VoD

Aim to largely increase revenue! 22

Programming Strategy

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Make headway on structural reforms to timetable

Programming Topics

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Viewer Ratings

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Source: Video Research

Second half of FY2007 (Week 1 of October～Week 2 of November）

All day・Prime Time・Golden・Non prime time → All #2 All day＋0.4％ Prime time＋0.8％ (yoy) →Gradual results through progressive reforms !

NTV TBS CX EX TX HUT

All Day 8.5 7.6 9.1 8.3 3.9 43.3

Last year

8.1 7.7 9.2 7.6 3.7 42.5

Prime Time 13.0 11.2 14.7 12.7 8.2 65.4

Last year

12.2 12.9 14.7 12.7 7.7 65.2

Golden time 13.1 11.3 14.4 12.1 8.7 66.9

Last year

11.9 13.2 14.2 12.1 8.3 66.2

Non prime time 7.2 6.5 7.4 7.0 2.6 37.0

Last year

7.0 6.2 7.6 6.1 2.5 36.0

High-profile regular programs in October

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Program Information

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Day Title Leading actor Tue 22:00 Bonbi-men Shun Oguri Wed 22:00 Saito-san Arisa Mizuki Sat 21:00 1 Pound no Fukuin Kazuya Kamenashi Drama lineup for January

Year-end and New year special programs

Sports Specials

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Title Day FIFA Club World Cup Japan 2007 presented by TOYOTA

Dec.7th -16th

86th ALL JAPAN HIGH SCHOOL SOCCER TOURNAMENT

Dec.30th -Jan.14th

84th Hakone Ekiden

• Jan. 2nd and 3rd

Tokyo Marathon 2008

• Feb. 17th

26th Yokohama International Woman’s Ekiden

• Feb. 24th

Main Movie Lineup for FY2007

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Title

Release Date Distributor

Head

• rganizer

Tokyo Tower

• Mom & Me, and sometimes

Dad-

• Apr. 14,

2007 SHOCHIKU 2007 box-office hit with revenue of 2 billion yen. DVD released October 24th . Head

• rganizer

Maiko Haaaan!!!

• Jun. 16,

2007 TOHO 2007 box-office hit with revenue of 2.1 billion yen. DVD to be released December 12th . Head

• rganizer

ALWAYS

• Sunset on

Third Street 2

• Nov. 3,

2007 TOHO Sequel to “ALWAYS” Attracting more than 2.8 million moviegoers since November 3rd. Head

• rganizer

A Tale of Mari and Three Puppies

• Dec. 8,

2007 TOHO TOHO’s new year movie based on real-life story Head

• rganizer

Ｌ Change the WorLd

• Feb. 9,

2008 WARNER BROS. Spin-off of “DEATH NOTE” Head

• rganizer

Sweet Rain Shinigami no Seido

• Mar. 22,

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

• Jan. 26,

2008 TOHO The novelistic film adaptation of Gekidan Hitori Cast ：Junichi Okada, Aoi Miyazaki