Nippon Television Holdings, Inc. · TSE:9404
Nippon Television — FY2023 Earnings Presentation
46 slides from Nippon Television's earnings presentation, May 9, 2024
Slide 1: FY2023 Financial Results
FY2023 Financial Results 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
Slide 2: Contents
Capital Efficiency Plan Overview of Financial Results and Forecast Contents Strategy Programming Strategy Digital & Streaming Strategic Investment Trend Reference Materials
Slide 3: Capital Efficiency Plans: Shareholder Return
Capital Efficiency Plans Shareholder Return Dividend distribution to foreign shareholders not listed on the shareholder registry • We will propose at the Ordinary General Meeting of Shareholders an amendment to the Articles of Incorporation that would enable foreign shareholders without voting right
Slide 4: Capital Efficiency Plans: Capital Policy
Capital Efficiency Plans Capital Policy Continuous reduction of cross-shareholdings • As we continue to reduce cross-shareholdings, we will consider factors such as the financial performance, dividend, and share price of relevant companies to determine whether it is reasonable to own their shares. •
Slide 5: Overview of Financial Results and Forecast
Capital Efficiency Plan Overview of Financial Results and Forecast Contents Strategy Programming Strategy Digital & Streaming Strategic Investment Trend Reference Materials
Slide 6: FY2023 Financial Performance
FY2023 Financial Performance Higher sales, lower operating profit ■Share of spot ad sales over 30%. Tough conditions continue for TV ads, leading to lower terrestrial advertising revenue. ■Nippon TV’s income from anime, international content sales, IP business, and films were strong. ■Group companie
Slide 7: Consolidated Forecast and Dividend Forecast
Consolidated Forecast and Dividend Forecast Forecast for FY2024 Forecast for (Millions of yen) FY2023 Result Change Change(%) FY2024 Net Sales 423,523 442,000 18,477 4.4% Operating Profit 41,877 42,000 123 0.3% Recurring Profit 49,503 48,000 △1,503 △3.0％ Profit attributable to owners of parent Net i
Slide 8: Nippon TV HD: Consolidated Financial Results
Nippon TV HD: Consolidated Financial Results (Millions of yen) FY2022 FY2023 YoY Change Net Sales 413,979 423,523 9,544 2.3% Operating Profit 46,593 41,877 △4,716 △10.1% Recurring Profit 51,775 49,503 △2,272 △4.4% Net Income attributable to owners of the parent 34,081 34,660 578 1.7% (Millions of ye
Slide 9: Net Sales YoY Change Components
Net Sales YoY Change Components (Millions of yen) HD: Consolidated Results Group Companies Nippon TV Content +9,544 Strategy New Business Previous Nippon MURAYAMA TIPNESS Total Anime- Other Current Nippon la belle vie period Television Television related period Reference Net Sales Terrestrial Events
Slide 10: Operating Profit YoY Change Components
Operating Profit YoY Change Components (Millions of yen) △421 △866 HD: Consolidated Results Group Companies Nippon TV △ 4,716 Content Strategy New Business Previous Nippon TV la belle vie MURAYAMA TIPNESS Total Anime- Other and Current period related Consolidated period Reference Operating ※Jul.- De
Slide 11: Nippon TV: Financial Results
Nippon TV: Financial Results Lower sales and profit Impacted by weaker terrestrial television advertising revenue Non-broadcasting sales and profits increased thanks to strong events, anime, IP, and international content sales Booked gain on sale of investment securities pursuant to sale of
Slide 12: Nippon TV: Net Sales and Cost of Sales
Nippon TV: Net Sales and Cost of Sales (Millions of yen) Net Sales FY2022 FY2023 YoY Change Advertising Revenue 236,908 226,135 △10,772 △4.5% Program Sales 11,024 11,013 △10 △0.1% Events/Content Business Sales 40,542 46,907 6,365 15.7% Real Estate Business 2,362 3,018 655 27.8% Total 290,838 287,075
Slide 13: Nippon TV: Advertising Revenue
Nippon TV: Advertising Revenue (Millions of yen) FY2022 FY2023 YoY Change Advertising Revenue 236,908 226,135 △10,772 △4.5% Time 111,060 105,153 △5,907 △5.3% Spot 120,701 114,122 △6,579 △5.5% Digital Ad. 5,146 6,860 1,714 33.3% ＊Digital Ads row added in FY2022, comprised of TVer and the like. FY2023
Slide 14: Nippon TV: Production Costs
Nippon TV: Advertising Revenue (Millions of yen) FY2022 FY2023 YoY Change 87,526 89,331 1,804 2.1% (Millions of yen) Production Costs(FY) 100,000 95,245 89,331 88,421 87,526 84,544 HD: Consolidated Results 80,000 Group Companies 60,000 Nippon TV 40,000 Content Strategy 20,000 New Business 0 2019 202
Slide 15: Nippon TV: Events/Content Business Sales and Balance
Nippon TV: Events/Content Business Sales and Balance (Millions of yen) Sales Balance FY2023 Change FY2023 Change Movies 3,667 △0.6% 1,536 △6.2% Events 6,289 35.2% 1,043 30.6% Retail Business 7,875 △2.9% 377 1.3% HD: Consolidated Results Anime 6,695 79.7% 2,843 58.0% Group Companies International Bus
Slide 16: Financial Highlights of Group Companies
Financial Highlights of Group Companies (Millions of yen) Nippon Television BS Nippon Corp. CS Nippon Corp. VAP Inc. TIPNESS Limited Music Corp. Net Sales 16,897 3.7% 8,932 △3.5% 8,984 6.8% 6,643 △5.3% 26,456 1.6% Operating 2,201 3.6% 593 11.9% 2,291 12.4% 1,450 △4.4% 423 ー Profit Recurring 2,256 4.
Slide 17: CAPEX and Depreciation (consolidated)
CAPEX and Depreciation (consolidated) (Billions of yen) Depreciation and CAPEX amount Amortization FY2023 8.0 13.7 CAPEX amount Depreciation and Amortization 21.2 19.1 20.0 20.0 HD: Consolidated 17.4 Results 15.8 14.2 14.0 13.9 Group 13.2 13.7 13.5 13.5 13.1 Companies 11.9 9.9 10.0 10.0 10.0 Nippon
Slide 18: Content Strategy
Capital Efficiency Plan Overview of Financial Results and Forecast Contents Strategy Programming Strategy Digital & Streaming Strategic Investment Trend Reference Materials
Slide 19: Studio Ghibli's "The Boy and the Heron" Wins Oscar
Studio Ghibli’s “The Boy and the Heron” Wins Oscar Director Hayao Miyazaki’s “The Boy and the Heron” won best animated feature film at the 96 th Academy Awards. It is his 2nd Oscar after “Spirited Away” Comment from Studio Ghibli Producer Toshio Suzuki: On April 3, 2024, “The Boy and the Heron”
Slide 20: Studio Ghibli and Nippon TV
Studio Ghibli and Nippon TV Morning infotainment show “ZIP!” features periodic collabs with Studio Ghibli, “Ghibli by ZIP!” We showcased a new attraction at Ghibli Park, Valley of Witches, the day before opening through a live report from the venue. Ghibli events ongoing or set to open across Japa
Slide 21: Anime Business
Anime Business Spectacular successes for “Frieren: Beyond Journey’s End” and “The Apothecary Diaries” Frieren: Beyond Journey’s End The Apothecary Diaries Friday anime slot (1st airing on 2,455 slots on Saturdays (1st airing Air: Friday Roadshow) offered 3 episodes) 1st place in all major streaming
Slide 22: Global Content Rollout
Global Content Rollout ■”Dragons’ Den”/”Shark Tank” hits 50 th version! ・”Dragons’ Den”/”Shark Tank” marks its 50 th local version in December 2023 with launches announced for Dubai and Bangladesh. ・This is a long-running hit show that boasts stellar viewer ratings in many countries; on its 21st sea
Slide 23: Global Rollout of Drama Series
Global Rollout of Drama Series Studio Strategy is a department within Global Business that was established in June 2023. It consolidates the production and business teams who focus mainly on story content for anime, films, and drama series. Expanding the breadth of co-developments and businesses, it
Slide 24: IP Business
IP Business Shows that only Nippon TV can produce, linked with IP (intellectual property) content, are spreading and creating a new movement. ●Large-scale dance & vocal music festival D.U.N.K. a success Since the BE:FIRST’s audition show, relations have been good with a producer SKY-Hi, leading to o
Slide 25: Programming Strategy
Capital Efficiency Plan Overview of Financial Results and Forecast Contents Strategy Programming Strategy Digital & Streaming Strategic Investment Trend Reference Materials
Slide 26: April 2024 Programming Improvements
April 2024 Programming Improvements Biggest timetable improvements in several years for Saturday golden and prime time. HD: Consolidated Results Group Companies Nippon TV Content Strategy New Business Reference 26 Materials
Slide 27: Core Max Strategy
April 2024 Programming Improvements Core Max Strategy Implemented a new programming strategy in April 2024 to overwhelmingly win the support of our core target, who sponsors place the most importance on for being the generations that will lead the future. We aim to be the overwhelming leader in view
Slide 28: FY2023 Core Target Viewer Ratings
FY2023 Core Target Viewer Ratings No. 1 in all timeslots for FY2023 again, with overwhelming lead over 2nd place! April 03, 2023 – March 31, 2024 NTV EX TBS TX CX All Day ① 2.6 ④ 1.3 ③ 1.5 ⑤ 0.5 ② 1.7 6:00 to 24:00 Prime Time ① 4.3 ④ 2.4 ② 3.0 ⑤ 1.3 ③ 2.8 HD: Consolidated 19:00 to 23:00 Results Grou
Slide 29: Viewer Ratings by Gender and Age
FY2023 Viewer Ratings by Gender and Age Nippon TV is No. 1 not only for the youth, but also all generations under 65 Indivi- Core C T M1 M2 M3 April M303,2023 F1 - March F2 31,2024 F3 F3 dual Target 4-49 ４－12 13-19 20-35 36-49 50-64 Over 65 20-35 36-49 50-64 Over 65 All Day 6:00 to 24:00 １ 1 1 1 1 1
Slide 30: Olympic Games Paris 2024
Olympic Games Paris 2024 Nippon TV will air the events where Japan is expected to win medals. The strongest in history! Hina Hayata, Miu Hirano, and Miwa Harimoto go for the gold medal! Table tennis women’s team event finals Since Kohei Uchimura, the Japan team has won 3 consecutive Olympic golds! W
Slide 31: FY2024 Special Programs
FY2024 Special Programs Spring Ghibli film (Friday Roadshow) Pro Baseball Climax & Japan Series The Dance Day Karada Week (Health Week) Good For the Planet Week The W Comedienne Battle for No. 1 Second Half (Oct – Mar) First Half (Apr – Sep) FIFA World Cup 2nd round vs Myanmar New Year’s Special Pro
Slide 32: FY2024 Shows Related to Sustainability
FY2024 Shows Related to Sustainability We will create shows year-round with sustainability as the theme ◆6/1 (Sat) – 6/9 (Sun) Good For the Planet Week Over 30 shows from the Nippon TV network join forces again this year for the slogan “Living in the moment for Earth, the future, and a better life.”
Slide 33: Digital & Streaming
Capital Efficiency Plan Overview of Financial Results and Forecast Contents Strategy Programming Strategy Digital & Streaming Strategic Investment Trend Reference Materials
Slide 34: HJ Holdings (Hulu)
HJ Holdings (Hulu) (Millions of yen) Net Sales Operating Profit Recurring Profit Net Income FY2023 33,700 239 286 282 ■Subscriber & sales growth from hit original content and Disney+ set plan! New Hulu branding as a mystery expert, with first drama adaptation of a mystery masterpiece that was said t
Slide 35: HJ Holdings (Hulu)
HJ Holdings (Hulu) ■Irresistible content also for FY2024! Science investigation suspense mystery part 3 With SE1 aired linearly and SE2 streamed as a Hulu original, “Pandora’s Fruit” captured many new subscribers. A new season is set for June. Original versions of a wildly popular entertainment show
Slide 36: Streaming Business: TVer (AVOD)
Streaming Business: TVer (AVOD) TVer Highlights ■Over 750 programs from all broadcasters streamed ■Catch-up views: Jan: 350 mil Feb: 370 mil Mar: 450 mil (historical high) Unique browsers: Jan: 35 mil (historical high) Feb: 32 mil Mar: 32.5 mil ■Total app downloads: 72 mil Monthly Unique Browsers Mo
Slide 37: Streaming Business: TVer (AVOD)
Streaming Business: TVer (AVOD) Nippon TV Initiatives Nippon TV Monthly Views (VOD only) (10,000 views) ■Entertainment shows get many views 9,000 “Monday Late Show” and “Girl’s Barking Night” are hits that 8,000 7,000 broke records for views. 6,000 ■Largest-ever archive offered 5,000 HD: Consolidate
Slide 38: Strategic Investment Trend
Capital Efficiency Plan Overview of Financial Results and Forecast Contents Strategy Programming Strategy Digital & Streaming Strategic Investment Trend Reference Materials
Slide 39: Strategic Investment Trend
Strategic Investment Trend 2019-2021 2022‐2024 2012-2015 2016-2018 Nippon TV Medium-Term Next60 Change65 eVOLUTION Management Plan Studio Ghibli Media & Content Business HD: Consolidated Results Group Companies Life & Health- Nippon TV Related Business Content Strategy Total Investment New Business
Slide 40: la belle vie
la belle vie Operator of flash sales fashion e-commerce websites (GLADD, GILT) ⁻ Over 5.5 million users ⁻ Over 10,000 brands Customers returning to physical stores and difficulty in acquiring inventory due to the yen’s depreciation led to the drastic worsening of the business environment Increas
Slide 41: Reference Materials
Capital Efficiency Plan Overview of Financial Results and Forecast Contents Strategy Programming Strategy Digital & Streaming Strategic Investment Trend Reference Materials
Slide 42: Segment Results
Segment Results (Millions of yen) Segment Profit Net Sales (△ Loss) FY2022 FY2023 Change FY2022 FY2023 Change Media Content Business 384,976 393,567 8,590 44,152 38,539 △5,613 Life and Health Related Business 26,052 26,456 403 △438 538 977 HD: Consolidated Results Real Estate-Related Group Businesse
Slide 43: Spot Sales - Terrestrial Broadcasting (Nippon TV)
Spot Sales ‐ Terrestrial Broadcasting (Nippon TV) Share Change Share Change FY2022 FY2023 18.0 （％） (%) （％） (%) 16.0 1 Service 16.3 28.0% 1 Service 14.9 △13.5% 14.0 FY2023 FY2022 12.0 2 Telecom/Game 13.1 △30.5% 2 Telecom/Game 11.8 △14.6% 10.0 8.0 3 Cosmetics/Toiletries 8.4 11.9% 3 Cosmetics/Toiletrie
Slide 44: Movie Lineup for FY2024 ①
Movie Lineup for FY2024 ① ★＝Co-organized with Nippon TV 〇＝Nippon TV is an investor in the film ■=Nippon TV is lead organizer Date Title Distributor Friday May 24 ★ Dangerous Cops -Home coming- TOEI HD: Consolidated Results Friday 〇 ANPANMAN：Baikinman and Lulun TOKYO June 28 in the Picture Book THEAT
Slide 45: Movie Lineup for FY2024 ②
Movie Lineup for FY2024 ② ★＝Co-organized with Nippon TV 〇＝Nippon TV is an investor in the film ■=Nippon TV is lead organizer Date Title Distributor Friday August 02 〇 My Hero Academia: You're Next TOHO HD: Consolidated Results Friday September 06 ★A Conviction of Marriage WB Group Companies Nippon T
Slide 46: Event Lineup for FY2024
Event Lineup for FY2024 Date Title Ghibli Park and Ghibli Exhibition Friday June 28 – Monday September 23 Warehouse TERRADA(Tennnozu, Tokyo) © Studio Ghibli © Kanyada Le dernier Monet Paysages d’eau Saturday October 05,2024 – HD: Consolidated Tuesday February 11,2025 Results Group The National Museu
Nippon Television Holdings — FY2023 Earnings Presentation on 6ix