Nippon Television Holdings, Inc. · TSE:9404
Nippon Television — Q3 FY2021 Earnings Presentation
36 slides from Nippon Television's earnings presentation, Feb 3, 2022
Slide 1: FY2021 3Q Financial Results
FY2021 3Q Financial Results February 03, 2022 Nippon Television Holdings, Inc. 1
Slide 2: Forward-looking statements notice
This presentation may include forward-looking statements. Actual results, however, could differ significantly as a result of various factors and circumstances. Forward-looking statements contained herein are not guarantees or commitments. Reproduction of this presentation is prohibited. 2
Slide 3: Agenda
・Fiscal 2021 3Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy ・Strategic Investments 3
Slide 4: Key Points of 3Q Financial Results for FY2021
Key Points of 3Q Financial Results for FY2021 Sales and profits increased due to Point remarkable improvement in ad market 1 ・TV ad sales recovered close to pre-COVID levels seen 2 years ago, with spot making up 30% of ad sales due to #1 individual and core viewer ratings. Time ad sales also increas
Slide 5: FY2021 3rd Quarter Consolidated Financial Results
FY2021 3rd Quarter Consolidated Financial Results (Millions of yen) FY2020 3Q FY2021 3Q Change (%) Net Sales 283,766 301,197 6.1 Operating Profit 24,237 44,835 85.0 Recurring Profit 28,726 50,175 74.7 Net Income attributable to owners 16,813 38,872 131.2 of the parent 5
Slide 6: Net Sales YoY Change Components
Net Sales YoY Change Components (Millions of yen) 320,000 ＋2,439 ＋973 △9,919 ＋4,199 ＋2,737 △3,382 300,000 ＋20,384 280,000 260,000 301,197 283,766 240,000 220,000 17,430 Increase in Profit 200,000 Previous 前期 Nippon 日ﾃﾚ地上波 Nippon 日ﾃﾚ CS Nippon CS日本 ＨＪ TIPNESS ﾃｨｯﾌﾟﾈｽ ACM Other その他及び and Current 当期per
Slide 7: Recurring Profit YoY Change Components
Recurring Profit YoY Change Components 60,000 (Millions of yen) ＋1,898 50,000 △3,391 ＋2,435 ＋350 △66 ＋573 ＋19,650 40,000 30,000 50,175 20,000 28,726 21,449 10,000 Increase in Profit 0 Previous 前期 Nippon 日ﾃﾚ放送事業 TV Nippon Television CS 日ﾃﾚ放送外事業 Nippon CS日本 TIPNESS ﾃｨｯﾌﾟﾈｽ ACM Accounted 持分法による for Oth
Slide 8: CAPEX and Depreciation (Consolidated)
CAPEX and Depreciation (Consolidated) Depreciation and FY2021 3Q CAPEX amount amortization (Unit: Billions of yen) 6.5 11.8 (Billions (Billions CAPEX amount of yen) Depreciation and amortization of yen) 30.0 30.0 26.6 21.2 19.1 17.4 15.1 20.0 20.0 16.4 14.5 14.3 13.2 10.5 7.7 6.8 10.0 10.0 11.8 6.5
Slide 9: Agenda: Highlights of Group Companies
・Fiscal 2021 3Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy ・Strategic Investments 9
Slide 10: Nippon TV Financial Results
Nippon TV Financial Results (Millions of yen) FY2020 3Q FY2021 3Q Change (%) Net Sales 206,854 223,469 8.0 Operating Profit 21,960 38,279 74.3 Recurring Profit 25,278 41,156 62.8 Net Income 37,067 33,982 △8.3 10
Slide 11: Net Sales-Nippon TV
Net Sales-Nippon TV (Millions of yen) FY2020 3Q FY2021 3Q Change (%) TV advertising 161,188 181,572 12.6 revenue Program Sales 8,579 8,142 △5.1 Events/Content 35,373 31,990 △9.6 business sales Real Estate 1,714 1,763 2.9 Business Total 206,854 223,469 8.0 11
Slide 12: Nippon TV Advertising Revenue
Nippon TV Advertising Revenue (Millions of yen) FY2020 3Q FY2021 3Q Change (%) TV advertising 161,188 181,572 12.6 revenue Time 89,233 89,680 0.5 Spot 71,954 91,892 27.7 12
Slide 13: Nippon TV Cost of Sales
Nippon TV Cost of Sales (Millions of yen) FY2020 3Q FY2021 3Q Change (%) Production costs 63,663 61,864 △2.8 Personnel 16,259 16,353 0.6 Depreciation 8,274 7,925 △4.2 and amortization Events/content 25,650 24,896 △2.9 business costs Others 71,046 74,151 4.4 Total 184,894 185,189 0.2 13
Slide 14: Nippon TV Production Costs
Nippon TV Production Costs (Millions of yen) FY2020 3Q FY2021 3Q Change (%) 63,663 61,864 △2.8 Production costs (3rd Quarter) 80,000 75,164 74,710 75,070 72,456 73,595 73,824 72,089 72,945 70,000 63,663 61,864 60,000 50,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (FY) 14
Slide 15: Events/Content Business Sales and Costs
Events/Content Business Sales and Costs FY2020 FY2021 FY2020 FY2021 （(Millions of yen) (Millions of yen) 3Q 3Q 3Q 3Q Sales 8,034 3,161 Sales 1,585 1,155 Movies Costs 5,593 1,479 IP Business Costs 424 851 Balance 2,442 1,682 Balance 1,161 305 Sales 572 1,922 Events Costs 768 1,865 Sales 6,423 1,014 B
Slide 16: Financial Highlights of Other Group Companies
Financial Highlights of Other Group Companies Nippon CS Nippon (Millions of yen) BS Nippon Corp. Television VAP Inc. TIPNESS Limited Corp. Music Corp 12,183 7,318 5,447 5,356 17,240 Net Sales (8.3％) (114.7%) (△38.5%) (△49.3%) (16.4%) Operating Profit 1,722 456 1,399 1,004 △2,112 (Loss) (△) (27.9%) (
Slide 17: Agenda: Fiscal 2021 Outlook
・Fiscal 2021 3Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy ・Strategic Investments 17
Slide 18: Consolidated Forecast and Dividend Forecast
Consolidated Forecast and Dividend Forecast Consolidated Forecast FY2021 FY2020 FY2021 change (Millions of yen) Previous Forecast Result Revised Forecast (B) (B-A) (A) Net Sales 391,335 400,000 405,000 5,000 Operating Profit 34,526 46,000 55,000 9,000 Recurring Profit 42,944 52,000 61,000 9,000 Prof
Slide 19: Agenda: Content Business Strategy
・Fiscal 2021 3Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy ・Strategic Investments 19
Slide 20: 2021 Annual Individual Viewer Ratings
2021 Annual Individual Viewer Ratings January 04, 2021 – January 02, 2022 2021/01/04(月)～2022/01/02(日) NTV EX TBS TX CX PUT All Day日 全 ① 4.0 ② 3.9 ③ 3.1 ⑤ 1.5 ④ 2.9 22.1 6:00 to 24:00 6時～24時 ▲0.6 ▲0.3 ▲0.3 ±0.0 ▲0.2 ▲1.3 Prime プライムTime ① 5.9 ① 5.9 ③ 4.7 ⑤ 3.2 ④ 4.5 34.0 19:00 to 23:00 19時～23時 ▲0.9 ▲0
Slide 21: 2021 Annual Core Target Viewer Ratings
2021 Annual Core Target Viewer Ratings January 04, 2021 – January 02, 2022 2021/01/04(月)～2022/01/02(日) NTV EX TBS TX CX PUT （単位：%） 全All Day 日 ① 3.4 ④ 1.7 ③ 1.8 ⑤ 0.7 ② 2.3 12.0 6:00 to 24:00 6時～24時 ▲0.7 ▲0.2 ▲0.2 ±0.0 ▲0.2 ▲1.4 Prime プライムTime ① 5.4 ④ 3.2 ③ 3.6 ⑤ 1.7 ② 3.9 21.2 19:00 to 23:00 19時～23時
Slide 22: Ranking Based On Number of Viewers
Ranking Based On Number of Viewers Broad- Total Viewers Average Viewers Title Minutes casters (millions) (millions) 1 08/03/21 Tokyo Olympics (Men’s Soccer Semi-final) 185 28 51.456 21.209 2 01/02/22 （単位：%）Hakone Ekiden 375 30 45.254 16.042 3 07/31/21 Tokyo Olympics (Athletics) 210 29 44.105 8.074 4
Slide 23: April 2022 Programming Strategy Themes
April 2022 Programming Strategy Themes 【Programming Strategy Themes】 ★Overcome critical challenges to TV and create timetable that wins support and choice of consumers ★From being switched OFF to ON, then becoming a FAN, then creating a BUZZ ～Through content, we will give consumers reasons to create
Slide 24: FY2022 Nippon TV Human IP Strategy
FY2022 Nippon TV “Human IP” Strategy 2020 NiziU 2021 BE:FIRST 2022 PRIKIL SKY-HI ●IP Business “More than just TV” Through content that links linear and digital streaming on Hulu, we will show you artists being borne up to the moment they rise to stardom! 2020 saw the global girls’ group audition pro
Slide 25: Agenda: Digital Strategy
・Fiscal 2021 3Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy ・Strategic Investments 25
Slide 26: TVer FY2021 3Q Summary
TVer FY2021 3Q Summary ◆ Massive year end campaign kicked off on December 27 to stream content at an unprecedented scale ◆ Total app downloads at around 44 mil (end-Dec) ◆ Maximum number of monthly visitors as MUB (excl. double counting) reached 1６.5mil in Dec ※provided by Video research ◆ Streamed
Slide 27: HJ Holdings FY2021 3Q Summary
HJ Holdings FY2021 3Q Summary ◆ 3Q-end number of paid subscribers increased 4% yoy and net sales grew 13% yoy ◆ Debuting on 11/3, BE:FIRST saw its content meeting stellar demand ・Live show streamed as TVOD on 11/5 broke historical high for ticket sales ・New series BE:FIRST Gifted.DAYS launched 11/26
Slide 28: Strategic Investments
Strategic Investments ●Bolster content creation expertise ⇒Beaglee Inc., whose core business is to create content primarily for its comics streaming service Manga Okoku (manga kingdom), became a Nippon TV Group affiliate after we purchased 25% of its shares through a tender offer and entered a capit
Slide 29: Reference Materials for Financial Results
Reference Materials for Financial Results 29
Slide 30: Segment Results
Segment Results （(Millions of yen) Reportable segments Consolidated Income FY2021 3Q Media Life and Real estate Others Total Adjustment Statement Health Amount Content Related Total recorded Related Business business Business Net Sales 279,519 17,003 7,670 304,192 5,331 309,524 △8,327 301,197 Segmen
Slide 31: TV Advertising Revenue YoY
TV Advertising Revenue YoY FY2020 FY2021 FY2020 FY2021 Time Spot (%) (%) (%) (%) April △2.4 △4.8 April △24.7 25.9 May 1.9 △1.2 May △40.2 79.8 June △3.1 0.4 June △47.5 100.3 July △3.8 8.2 July △32.6 29.3 August 0.6 14.5 August △26.4 18.2 September △11.6 △8.8 September △18.5 33.9 October △10.2 1.0 Oct
Slide 32: Spot Sales - Terrestrial Broadcasting (Nippon TV)
Spot Sales ‐ Terrestrial Broadcasting (Nippon TV) Share Chg Share Chg FY2020 3Q FY2021 3Q (%) (%) (%) (%) (%) 1 Telecom/game 18.5 10.3 Telecom/game 18.5 28.2 20.0 2 Cosmetics/toiletries 10.7 △ 26.4 Service 11.1 64.8 18.0 16.0 FY2020 3Q 3 Service 8.6 △ 36.8 Cosmetics/toiletries 9.6 14.9 14.0 FY2021 3
Slide 33: Movie Lineup for 2021-2022
Movie Lineup for 2021-2022 ☆ Lead manager, Nippon TV ★ Co-organized with Nippon TV Date Title Distributor January ☆Noise Warner Bros. 28 February ★The Deer King TOHO 03 33
Slide 34: Movie Lineup for 2021-2022
Movie Lineup for 2021-2022 ☆ Lead manager, Nippon TV ★ Co-organized with Nippon TV Date Title Distributor DETECTIVE CONAN The Bride of April 15 TOHO Halloween TOKYO NOW June 24 ANPANMAN：33rd MOVIE THEATRE PRINTING Early ★WAY OF THE HOUSEHUSBAND: The SONY summer Movie 34
Slide 35: Movie Lineup for 2021-2022
Movie Lineup for 2021-2022 ☆ Lead manager, Nippon TV ★ Co-organized with Nippon TV Date Title Distributor Early ☆BL Metamorphosis (working title) NIKKATSU summer Summer ★ KINGDOM２(working title) TOHO/SONY Summer ★The Imaginary TOHO 35
Slide 36: Event Lineup for 2022
Event Lineup for 2022 ※Do to COVID-19, events may be postponed or canceled Date Event BOTERO – MAGIC IN FULL FORM 【Tokyo】 From Friday, April 29 to Sunday, July 3, 2022 DETECTIVE CONAN THE MOVIE EXHIBITION 【Tokyo】 From Saturday, April 30 to Sunday, June 12, 2022 Art & Power: From Pharaohs to Daimyōs.
Nippon Television Holdings — Q3 FY2021 Earnings Presentation on 6ix