Wowow Inc. · TSE:4839
Wowow — FY2017 Earnings Presentation
28 slides from Wowow's earnings presentation, May 15, 2018
Slide 1: FY2017 Earnings and FY2018 Business Plan Summary
W_O WO W FY2017 Earnings and FY2018 Business Plan Summary May 15, 2018 WOWOW INC.
Slide 2: FY2017 Earnings, FY2018 Business Plan, Supplementary Materials
@ -Y2017 Earnings (April-March) @ Summary of FY2018 Business Plan @® Supplementary Materials
Slide 3: FY2017 Earnings Highlights: Subscriptions
FY2017 Earnings Highlights © Net new subscriptions increased for twelfth consecutive period New Subscription e@ Number of net cumulative subscriptions reached 2.876 million, marking a new year-end record. e@ Sports programs like tennis and boxing and music programs of Namie Amuro and Tohoshinki drov
Slide 4: FY2017 Earnings Highlights: Income and Expenditure
FY2017 Earnings Highlights @ Revenue and income increased from previous period; revenue and ordinary income marked new records since listing Income & Expenditure (Consolidated) @ Revenue increased from the previous period due to factors such as WOWOW PLUS (formerly IMAGICA TV*) becoming a consolidat
Slide 5: FY2017 Subscription
FY2017 Subscription (Thousands) Previous Period Comparison FY2016 FY2017 Difference YoY Gross New 5 Subscriptions 578 12 102.2% Cancellations 560 -22 96.0% Net New 5 Subscriptions 19 35 287.5% Net Cumulative 0 Subscriptions 2,823 53 101.9% sisson 421 3 99.2% subse 12 48 498.9% *! Existing subscriber
Slide 6: Change in Net Cumulative Subscriptions
Change in Net Cumulative Subscriptions (Thousands) 3,000 2,876 2,805 2,756 2,648 2,500 Difference Difference Difference Difference Difference > 000 +17 +108 +48 +19 +53 FY2013 FY2014 FY2015 FY2016 FY2017
Slide 7: Non-Consolidated / Consolidated
Non-Consolidated Consolidated
Slide 8: Revenue Compared to Previous Period
Revenue Compared to Previous Period Consolidated YoY Non-Consolidated Millions of yen ] 04.2% Millions of yen 80,000 81 074 80,000 , 78,253 , YoY 99.1% 75,000 75,000 72.878 72,202 70,000 70,000 65,000 65,000 60,000 60,000 FY2016 FY2017 FY2016 FY2017 (Millions of yen) (Millions of yen) Revenue Item F
Slide 9: Consolidated Ordinary Income Factors in Difference from Previous Period
Consolidated Ordinary Income Factors in Difference from Previous Period Increase Factors (+) Decrease Factors (-) other Advertisement Expenses (Millions of yen) Program Cost 7 +126 Depreciation Expense +557 Ancillary Business Balance Viewing Fee Revenue Exchange Rate Income/Loss +679 ( Result: 10,69
Slide 10: Change in Program Cost
Change in Program Cost Program cost remained nearly equivalent to the previous period due to effective and efficient investment (Millions of yen) 23,1 65 22,804 26,831 26,948 26,822 (Percent: %) 30,000 70% 7 685 a 666 25,000 60% 20,000 15,000 50% 10,000 40% 5,000 Or 30% FY2013 FY2014 FY2015 FY2016 F
Slide 11: Income & Expenditure of Major Consolidated Earnings Companies
Income & Expenditure of Major Consolidated Earnings Companies BWOWOW COMMUNICATIONS (Telemarketing) (Millions of yen) Previous Period Pyenie Difference Percent of Percent of Result Revenue Difference YoY Revenue 8,474 100.0% 7,709 100.0% | -764 91.0% Operating Income 57 0.7% 78 237.4% Ordinary Incom
Slide 12: FY2017 Earnings, FY2018 Business Plan, Supplementary Materials
@ §Y2017 Earnings (April-March) ®) Summary of FY2018 Business Plan ® Supplementary Materials
Slide 13: Summary of FY2018 Business Plan
Summary of FY2018 Business Plan Becoming a Comprehensive Entertainment Media Group Distinguish WOWOW from competitors with content that is wide-ranging and thoroughly unique to WOWOW > Enrich original content and line up number-ones in each genre > Aim to enhance the brand by procuring highly-newswo
Slide 14: FY2018 Subscription Plan
FY2018 Subscription Plan FY2017 Gross New Subscriptions 591 Cancellations 537 Net New Subscriptions 53 Net Cumulative 2.876 Subscriptions FY2018 (Thousands) Previous Period Comparison Difference YoY i] 101.6% 33 106.1% -23 56.4% 30 101.0%
Slide 15: Consolidated
Non- Consolidated Consolidated
Slide 16: FY2018 Investment Plan (Non-Consolidated)
FY2018 Investment Plan (Non-Consolidated) Expense FY2017 Equipment- related 2,418 Software Development 685 Total 3,104 Depreciation 2319 (Millions of yen) FY2018 Rebuilding the broadcast center, etc. customer management Figures rounded down to millions of yen.
Slide 17: FY2017 Earnings, FY2018 Business Plan, Supplementary Materials
@ -Y2017 Earnings (April-March) @ Summary of FY2018 Business Plan ® Supplementary Materials
Slide 18: Subscription
Subscription (Subscriptions) 2Q 3Q - He) ae) Cumulative se) Cumulative 4 Fiseell Weel Gross New Subscriptions 103,550 138,895 242,445 176,758 419,203 171,446 590,649 Cancellations 124,455 122,129 246,584 137,781 384,365 153,067 537,432 Net New Subscriptions -20,905 16,766 -4,139 38,977 34,838 18,379
Slide 19: Previous Period (FY2016) Subscription
Previous Period (FY2016) Subscription (Subscriptions) 2Q 3Q : is ao Cumulative 3Q Cumulative 4Q Fiscal Year Gross New Subscriptions 175,054 137,608 312,662 126,813 439,475 138,718 Cancellations 126,643 149,167 275,810 125,397 401,207 158,475 Net New Subscriptions 48,411 -11,559 36,852 1,416 38,268 -
Slide 20: Income & Expenditure (Consolidated)
Income & Expenditure (Consolidated) (Millions of yen) FY2016 Results hare Revenue 78,253 100.0% Broadcasting 69,955 89.4% 69,660 85.4% 99.6% Other 8,298 10.6% 11,914 14.6% 143.6% Il. CoGS 42,491 54.3% 45,224 55.4% 106.4% Gross Profit 35,762 45.7% 36,350 44.6% 101.6% Ill SG&A, 25,620 32.7% 26,474 32.
Slide 21: Income & Expenditure (Non-Consolidated)
Income & Expenditure (Non-Consolidated) (Millions of yen) FY2016 Percent of Revenue 100.0% Results e 100.0% I. Revenue 72,878 Broadcasting 69,955 96.0% 69,723 96.6% 99.7% Other 2,922 4.0% 2479 3.4% 84.8% I. CoGS 40,628 55.7% 40,062 55.5% 98.6% Gross Profit 32,249 44.3% 32,140 44.5% 99.7% Ill SG&A, 2
Slide 22: Expenditure Breakdown (Non-Consolidated)
Expenditure Breakdown (Non-Consolidated) (Millions of yen) FY2016 FY2017 YoY (1) CoGS Items Program Cost 26,948 26,822 99.5% Moving Picture Program Cost 5,421 5,314 98.0% Program Production Cost 20,841 20,841 100.0% Other 685 666 97.2% Broadcasting Technology Cost 2,730 2,752 100.8% Expenses for Pro
Slide 23: Extraordinary Income/Loss Breakdown
Extraordinary Income/Loss Breakdown (Millions of yen) (Consolidated) Extraordinary Income Income from Sale of Non-Current Assets 0 2 - Total (0) 2 = Extraordinary Losses Loss from Elimination of Non-Current Assets 521 39 7.5% Loss from Valuation of Available-for-Sale Investment Securities 0) - - Imp
Slide 24: Results by Consolidated Segment
Results by Consolidated Segment (Millions of yen) Revenue (Seceainy Inset) ee | YoY FY2016 YoY Broadcasting 73,432 77,651 105.7% 10,083 9,739 96.6% Telemarketing 8,474 7,709 91.0% 57 136 237.4% Total 81,906 85,361 104.2% 10,141 9,875 97.4% Adjusted* -3,653 -3,787 - - - - Consolidated 78,253 81,574 1
Slide 25: Balance Sheets (Consolidated)
Balance Sheets (Consolidated) (Millions of yen) As of March 31, 2017 As of March 31, 2018 Compared to End of Previous Period Compared to Results Share Results Share Difference End of Previous Period Current Assets 57,747 70.9% 58,137 66.8% 390 100.7% Non-Current Assets 23,714 29.1% 28,945 33.2% 5,23
Slide 26: Balance Sheets (Non-Consolidated)
Balance Sheets (Non-Consolidated) (Millions of yen) As of March 31, 2017 As of March 31, 2018 Compared to End of Previous Period Compared to Results Share Results Share Difference End of Previous Period Current Assets 53,180 70.8% 51,713 65.7% -1,466 97.2% Non-Current Assets 21,957 29.2% 27,039 34.3
Slide 27: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (Millions of yen) |. Cash Flows from Operating Activities Income before Income Tax and Minority Interests 9,761 10,630 868 Depreciation Expenses, Reserves and Retirement Benefits 3,543 3,229 314 Increase (Decrease) in Accounts Receivable (“' signifies -454 -404
Slide 28: Cautionary Statement
W_O WO W Cautionary Statement: The earnings forecasts described in this document are made based on decisions and assumptions relying on information currently available to WOWOW INC. as of the date hereof and thus include risks and uncertainties. The actual financial results may substantially differ