Results Meeting Results Meeting for for the Interim Period ended - - PowerPoint PPT Presentation

Results Meeting Results Meeting for for the Interim Period ended the Interim Period ended September 30, 2006 September 30, 2006

(April 1, 2006 (April 1, 2006 – – September 30, 2006) September 30, 2006)

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Table of Contents Table of Contents

Financial highlights ........................................... P 03 Non-consolidated statement of income ............. P 06 Spot sales (Non-consolidated) .......................... P 07 Forecast for FY2006 ..........................................P 8 (Ref.) Forecast for CAPEX and Depreciation .... P 10 Programming .................................................... P 11 (Ref.) Viewer ratings ......................................... P 14 (Ref.) Yomiuri Giants night games ...................... P 16 Cultural-related business.................................... P 17

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Highlights of Operating Results Highlights of Operating Results

(Consolidated) (Consolidated)

Net sales decreased due to TV broadcasting revenue. VAP had excellent DVD sales of NTV dramas and movies, however, total net sales decreased due to fewer volume of CD sales. Recurring profit and net income increased due to gain on interest in investment partnership and equity in net gains of subsidiaries and affiliates.

(Unit: Millions of yen)

76.9 7,770 4,393 Net income 6.5 14,628 13,742 Recurring profit △ 5.5 12,472 13,198 Operating income △ 5.5 165,870 175,510 Net sales

In/decrease

(%)

FY2006 1H

(Apr.-Sep.)

FY2005 1H

(Apr.-Sep.)

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（Unit : Millions of yen）

Cash Flow Cash Flow

(Consolidated) (Consolidated)

12,524 69,674 57,149

Cash and equivalents at the end of September 30, 2006

11,436 △ 2,339 △13,776

Cash flow from financing activities

3,740 △ 6,410 △10,151

Cash flow from investing activities

4,922 19,075 14,153

Cash flow from operating activities In/ decrease

(%)

FY2006 1H

(Apr. – Sep.)

FY2005 1H

(Apr. – Sep.)

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NTV 141,145 VAP Inc. 17,068 Other 7,657 120,000 130,000 140,000 150,000 160,000 170,000 Net sales (Unit: Millions of yen)

NTV 7,947 VAP Inc. 2,228 Other 2,297 NTV 10,003 VAP Inc. 2,235 Other 2,390 NTV 5,851 VAP Inc. 662 Other 1,257 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Operating income Recurring profit Net income (Unit: Millions of yen) Other VAP Inc. NTV

Operating Results Operating Results

(Consolidated / Non (Consolidated / Non-

• consolidated)

consolidated) Difference Non-consolidated Consolidated 1,919 5,851 7,770 Net income 4,625 10,003 14,628 Recurring profit 4,525 7,947 12,472 Operating income 24,725 141,145 165,870 Net sales

（Unit: Millions of yen)

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Highlights of Operating Results Highlights of Operating Results

(Non (Non-

• consolidated)

consolidated)

Net sales decreased due to declines in both spot and time sales, though Events / Content business sales increased. Despite FIFA World Cup, production costs slightly decreased. Recurring profit increased due to gain on interest in investment partnership. 337.2 5,851 1,338 Net income 3.9 10,003 9,626 Recurring profit △ 8.6 7,947 8,699 Operating income △ 2.1 141,145 144,194 Net sales In/decrease

(%)

FY2006 1H

(Apr.- Sep.)

FY2005 1H

(Apr.- Sep.)

（Unit : Millions of yen）

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Spot Sales by Industry Spot Sales by Industry

△ 17.72 31.08 Other 39.3 3.88 Service 14.4 4.21 Box-office/Entertainment △12.3 5.58 Pharmaceutical △12.9 6.61 Transportation/ Telecommunications △18.3 7.24 Finance △ 4.4 7.52 Alcohol △ 4.7 7.93 Automobile 10.9 8.15 Electronic equipment 13.3 8.33 Non-Alcohol △ 2.4 9.47 Cosmetics/Toiletries Yoy Share

Transportation /Telecommuni cations Service Pharmaceu- tical Other Finance Alcohol Electronic equipment Non-Alcohol Box-office/ Entertainment Cosmetics/ Toiletries Automobile

（％）

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Forecast for FY2006 Forecast for FY2006

(Unit : Millions of yen)

≪ Net sales / Operating income / Recurring profit / Net income ≫ 8,500 15,000 11,500 282,000 Non-consolidated 12,500 22,000 19,500 330,000 Consolidated Net income Recurring profit Operating income Net sales Fiscal Year

★As of November 1, 2006

9 19,500 310,500 330,000 Consolidated △ 13,000 5,100 △ 7,900 Elimination/Corporate 32,500 305,400 337,900 Subtotal 300 12,800 13,100 Other 3,400 55,100 58,500 Cultural Activities 28,800 237,500 266,300 Television Broadcasting Operating income Operating expenses Net sales

≪ Business Segment ≫

(Unit : Millions of yen)

Forecast for FY2006 Forecast for FY2006

★As of November 1, 2006

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

14.7 7.6 FY2006 Depreciation CAPEX （Consolidated）

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

（Non-consolidated） 10.2 8.0 FY2010 10.9 5.9 FY2009 12.5 7.7 FY2008 13.5 9.5 FY2007 13.8 7.1 FY2006 Depreciation CAPEX

★As of November 1, 2006

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Programming reforms Programming reforms ① ①

October programming strategy

"NEWS ZERO"

• Launch new challenge with program by selecting new team of anchorpersons and

designing original studio sets to bring new perspective to 23:00 time slot.

• Target viewers are younger than those of previous news program “Kyo no Dekigoto.”
• “NEWS ZERO”-related special programming during year-end prime time and daytime

weekends.

Dramas

• ” MOTHER AT FOURTEEN” on Wednesday gains average viewer ratings over 18%

and attracts attention of teenagers.

• Viewer ratings are rising for “LOVE OF MY LIFE” on Saturday.

Strengthen PR of drama through final episode. →Build up NTV’s image as a solid drama program-creator.

Prime time slot programs

• New programs such as Monday 22:00 ”Gokujyo no Getsu Yoru” and Thursday

20:00 “Cream Stew no Tarirari de Ikimasu!!” take time gaining high viewer ratings.

• KDDI-sponsored orthodox music program “Music Lovers” on Sunday 23:30.

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After end-of-year programming strategy

■ New dramas from January

Wednesday “Haken no Hinkaku” (tentative title)

This story, written by Miho Nakazono, is about an energetic office lady played by Ryoko Shinohara who has a positive effect on those around her through the excellent job she performs.

Saturday “Enka no Jyoou”

Actress Yuki Amami who starred in “The Queen’s Classroom” takes on a new role as an unsuccessful Japanese ballad singer who has one bad break after another in her life, but survives in the face of great difficulties to become a

• heroine. Written by Kazuhiko Yukawa.

Year-end and New year

Broadcast variety programs such as “Weekender,” “Gaki no Tsukai ya Arahende.”

Programming reforms Programming reforms ② ②

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Programming strategy Programming strategy

Medium and longer-term programming reform strategy

Structural reform of programming schedule

• Proceed with four reforms to programming time slots:

*October 2006…..23:00 time slot *April 2007……….Prime and Golden time slots *October 2007…...Non-Prime time slot *April 2008………. all time slots →Create programming schedule that will gain high viewer ratings and increase profitability

Strategic week and special programs

• NTV won quadruple crown title of viewer ratings for weeks of July 17th and

August 21st, designated as strategic weeks for 2006 with special programming →Continue to plan strategic special programming for 2007

• Emphasis on movies, special dramas, sports and intellectual entertainment as

special programs. NTV-invested movies are especially good content, not only for its box office revenue but also for gaining high viewer ratings on terrestrial broadcasting. Ex) “ALWAYS ~Sunset on Third Street, “ “DEATH NOTE” and STUDIO GHIBLI works

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(Ref.) Viewer Ratings (Ref.) Viewer Ratings① ①

Yearly

（Jan. 2, 2006 – Nov. 12, 2006 / 45 weeks）

Source: Video Research

38.2 2.6 6.4 8.1 6.4 7.7 Last year

37.8 2.6 6.2 7.9 6.5 7.5 Non-prime time

68.0 8.4 12.7 14.0 12.8 12.9 Last year

66.5 8.3 11.8 14.2 12.8 12.4 Golden time

67.1 7.7 13.1 14.3 12.9 13.0 Last year

65.8 7.8 12.6 14.4 12.7 12.6 Prime time

44.7 3.7 7.9 9.4 7.8 8.9 Last year

44.1 3.7 7.7 9.3 7.9 8.6 All day

HUT TX EX CX TBS NTV

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Viewer Ratings Viewer Ratings ② ②

Fiscal Yearly

（Apr. 3, 2006 – Nov. 12, 2006 / 32 weeks）

Source: Video Research

37.8 2.6 6.2 8.0 6.4 7.6 Last year

37.1 2.5 6.1 7.8 6.4 7.2 Non-prime time

67.6 8.4 12.8 14.1 12.8 12.4 Last year

65.8 8.4 11.6 14.1 12.7 11.9 Golden time

66.7 7.8 13.2 14.4 12.8 12.7 Last year

65.2 7.9 12.4 14.4 12.6 12.2 Prime time

44.2 3.7 7.7 9.4 7.8 8.7 Last year

43.4 3.7 7.5 9.2 7.7 8.3 All day

HUT TX EX CX TBS NTV

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0.0 5.0 10.0 15.0 20.0

FY2006 FY2005 FY2004 FY2003 FY2002

(Ref.) Yomiuri Giants night games (Ref.) Yomiuri Giants night games

As of October 30, 2006 Source: Video Research

* % * % * % FY2006 60 9.4 46 9.8 106 9.6 FY2005 66 10.1 63 10.3 129 10.2 Decrease

Details of Viewer Ratings

NTV Other Avg. ▲ 0.7 ▲ 0.5 ▲ 0.6

* : Number of games aired

Apr. May Jun. Jul. Aug. Sep. Oct. Avg. FY2006 12.7 11.4 9.0 7.0 6.8 7.0 9.6 NTV 13.3 10.4 9.9 7.2 6.8 6.6 9.4 Other 12.0 12.1 8.4 6.8 6.8 8.8 9.8 FY2005 12.9 13.1 10.2 8.2 7.2 7.2 10.2 FY2004 15.4 14.0 13.8 11.0 8.5 9.0 12.2 FY2003 16.1 16.3 16.0 13.0 12.2 9.8 14.3 FY2002 17.3 17.1 13.3 15.8 15.0 17.3 15.2 16.2

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Cultural Cultural-

• related business

related business

Movie business

“DEATH NOTE” Prequel in theaters from June 17th with box-office revenue of 2.8 billion yen (150 days) Sequel “Last name” in theaters from November 3rd with box-office revenue of 3.1 billion yen (17 days); huge success after airing on terrestrial broadcast during Friday movie time slot on October 27th DVDs of prequel and sequel to be released next spring “TALES from EARTHSEA” Latest Studio Ghibli film (directed by Goro Miyazaki) In theaters from July 29th with box-office revenue of 7.6 billion yen (105 days) “Ai no Rukei-chi” to open in theaters January 13th , 2007 Sequel “ALWAYS ~Sunset on Third Street" to open in theaters November, 2007

Media commerce business

Due to increased program airtime, non-consolidated sales increased 2.6 times Profit ratio increased due to continued favorable merchandise sales.

*Popular items: NINTENDO DS Lite, Rodeo Boy, HAMANO’s bag and BOJOBO WISHING DOLL

Events business

Our Landscape: 400 Years of European Paintings of the State Hermitage Museum October 19th – December 24th , 2006 at Tokyo Metropolitan Art Museum Event attracted about 115,000 visitors (as of November 12th )

Investor Relations Investor Relations Nippon Television Network Corporation Nippon Television Network Corporation