Asahi Broadcasting Group Holdings Corporation · TSE:9405

Asahi Broadcasting — Q2 FY2017 Earnings Presentation

49 slides from Asahi Broadcasting's earnings presentation, Nov 17, 2017

  1. Slide 1: Earnings Reference for the Second Quarter (Cumulative) of Fiscal 2017

    Note:The following document is an English translation of the Japanese-language original. Asahi Broadcasting Corporation Earnings Reference for the Second Quarter (Cumulative) of FISCAL 2017 (The fiscal year ending March 31, 2018) November 17, 2017 Securities Code：9405 ©ABC2017

  2. Slide 2: Earnings Results Overview

    Earnings Results Overview 1 ©ABC2017

  3. Slide 3: Earnings Results Overview for 1st Half of FY 2017

    Earnings Results Overview for 1st Half of FY 2017 (April-Sept, 2017) 2 ©ABC2017

  4. Slide 4: Earnings Outlook for 2nd Half and FY 2017 and Progress on Issues

    Earnings Outlook for 2nd Half and FY 2017 and Progress on Issues 3 ©ABC2017

  5. Slide 5: Details of Earnings Results

    Details of Earnings Results 4 ©ABC2017

  6. Slide 6: Consolidated Earnings

    Consolidated Earnings FY2017 1H FY2016 1H Growth % change Net sales 38,920 40,867 －1,947 －4.8％ Operating income 829 1,072 －243 －22.7％ Ordinary income 1,021 1,260 －239 －19.0％ Profit attributable to owners of 614 883 －269 －30.5％ parent 5 ©ABC2017

  7. Slide 7: Consolidated Net Sales in the Past 5 Years

    Consolidated Net Sales in the Past 5 Years 1st half Full year 90,000 81,484 80,691 81,059 82,302 80,000 70,000 60,000 50,000 40,245 39,721 39,405 40,867 38,920 40,000 30,000 20,000 10,000 0 2013 2014 2015 2016 2017 （FY） 6 ©ABC2017

  8. Slide 8: Consolidated Operating Income in the Past 5 Years

    Consolidated Operating Income in the Past 5 Years 1st half Full year 6,000 5,791 4,972 5,000 4,684 4,064 4,000 3,000 2,000 1,943 1,695 1,063 1,072 1,000 829 0 2013 2014 2015 2016 2017 （FY） 7 ©ABC2017

  9. Slide 9: Earnings by Segment

    Earnings by Segment Broadcasting FY2017 1H FY2016 1H Growth % change Net sales 32,974 35,014 －2,040 －5.8％ Operating income 412 635 －223 －35.1％ Housing FY2017 1H FY2016 1H Growth % change Net sales 5,483 5,418 65 1.2％ Operating income 397 461 －63 －13.9％ Golf Club FY2017 1H FY2016 1H Growth % change N

  10. Slide 10: Sharp Fluctuations of Operating Income Margin of Broadcasting Business

    Sharp Fluctuations of Operating Income Margin of “Broadcasting Business” Net sales（1st half） Net sales(Full year) 73,471 Operating profit margin（Full year） 70,461 70,739 70,568 8.0 68,519 68,957 69,688 69,794 70,000 66,978 67,519 6.5 7.0 6.2 60,000 6.0 5.4 4.8 4.7 5.0 50,000 4.0 4.0 37,997 3.9 40,00

  11. Slide 11: Non-consolidated Earnings (ABC)

    Non-consolidated Earnings (ABC) FY2017 1H FY2016 1H Growth % change Net sales 30,138 32,450 －2,312 －7.1％ Operating income 390 893 －502 －56.2％ Ordinary income 679 1,202 －522 －43.5％ Profit 483 974 －491 －50.5％ 10 ©ABC2017

  12. Slide 12: Television Broadcasting Business Revenue

    Television Broadcasting Business Revenue (Terrestrial broadcast) ＜Revenue＞ FY2017 1H FY2016 1H Growth % change Television broadcasting business revenue 27,455 28,592 －1,136 －4.0％ Breakdowns Network time advertising 6,506 7,362 －855 －11.6％ revenue Time Local time advertising 3,037 3,019 18 0.6％ reven

  13. Slide 13: Background of the Results of TV Broadcasting Business

    Background of the Results of TV Broadcasting Business Network time Local time 12 ©ABC2017

  14. Slide 14: TV spot sales revenue (Terrestrial broadcast)

    TV spot sales revenue (Terrestrial broadcast) FY 2017 FY 2016 Growth % change 1st quarter 8,722 8,692 29 0.3％ 2nd quarter 8,033 8,267 －233 －2.8％ 1st half 16,755 16,959 －204 －1.2％ April 3,021 Year-on-year comparisons of revenue 115.0 May 2,856 110.0 110.4 June 2,844 105.0 102.0 100.0 July 2,762 95.0

  15. Slide 15: TV spot sales revenue (By industry sector)

    TV spot sales revenue (Terrestrial broadcast: By industry sector ) FY2017 1H FY2016 1H Industry sector YoY （※） Composition rate YoY （※） Composition rate Foods 106.0% 11.1% 99.2% 10.4% Information/Telecommunication 91.8% 10.2% 141.5% 11.0% Automobile 108.8% 8.0% 93.4% 7.3% Pharmaceutical/Medical Prod

  16. Slide 16: Broadcasting Business Revenue (Non-Terrestrial)

    Broadcasting Business Revenue (Non-Terrestrial) FY2017 1H FY2016 1H Growth % change Radio broadcasting revenue 1,336 1,447 －110 －7.6％ Events revenue 671 1,537 －865 －56.3％ Content related revenue 422 629 －206 －32.9％ Content related revenue 679 *215 - - CS broadcasting revenue 1,605 1,737 －131 －7.6％ T

  17. Slide 17: Housing Business (ABC Development Corporation)

    Housing Business （ABC Development Corporation） 1: Housing Exhibition 2: Housing Design Center (HDC) Net sales（1st half) Net sales（Full year） Operating income margin（Full year） 10,924 10,155 10,424 9,824 10,000 9,039 15.0 8,879 8,804 8,215 8,323 13.4 8,000 12.3 13.0 13.2 13.1 10.5 12.1 6,000 11.9 5,4

  18. Slide 18: Consolidated / Non-consolidated Expenses

    Consolidated / Non-consolidated Expenses Consolidated FY2017 1H FY2016 1H Growth % change Cost of Sales 26,484 28,235 －1,751 －6.2％ Selling, General and Administrative Expenses 11,606 11,559 47 0.4％ Total Operating Expenses 38,090 39,795 －1,704 －4.3％ Non-consolidated FY2017 1H FY2016 1H Growth % chan

  19. Slide 19: Consolidated Earnings Forecast

    Consolidated Earnings Forecast FY 2017 FY 2016 Growth % change (actual) Net sales 80,500 82,302 －1,802 －2.2％ Operating income 4,100 4,972 －872 －17.5％ Ordinary income 4,300 5,261 －961 －18.3％ Profit attributable to owners of parent 2,600 3,416 －816 －23.9％ 18 ©ABC2017

  20. Slide 20: Earnings Forecast by Segment

    Earnings Forecast by Segment （in million yen） FY 2016 Total Broadcasting FY 2017 (actual) Growth % change Net sales 68,110 70,568 －2,458 －3.5％ Operating income 2,980 3,809 －829 －21.8％ FY 2016 Total Housing FY 2017 (actual) Growth % change Net sales 11,500 10,924 575 5.3％ Operating income 1,100 1,143

  21. Slide 21: Non-consolidated Earnings Forecast (ABC)

    Non-consolidated Earnings Forecast (ABC) FY 2017 FY 2016 Growth % change (actual) Net sales 62,700 65,130 －2,430 －3.7％ Operating income 2,900 3,485 －585 －16.8％ Ordinary income 3,200 3,891 －691 －17.8％ Profit 2,200 2,867 －667 －23.3％ 20 ©ABC2017

  22. Slide 22: Television Broadcasting Business (Terrestrial) Revenue Forecast

    Television Broadcasting Business (Terrestrial) Revenue Forecast ＜Revenue＞ FY 2017 FY 2016 Growth % change (actual) Television broadcasting business revenue 57,200 58,264 －1,064 －1.8％ Breakdowns Network time advertising 13,600 14,684 －1,084 －7.4％ revenue Time Local time advertising 5,800 5,592 207 3.

  23. Slide 23: Broadcasting Business Revenue Forecast (Non-Terrestrial)

    Broadcasting Business Revenue Forecast (Non-Terrestrial) ＜Revenue＞ FY 2016 FY 2017 Growth % change (actual) ABC FRONTIER Content related 914 －－－ HOLDINGS, INC. revenue 1,330 (Note) －－－ (Note： From July 2016 to March 2017） CS broadcasting Sky-A revenue 3,057 3,299 －242 －7.3％ TV shopping AMC business

  24. Slide 24: Consolidated / Non-consolidated Expenses Forecast

    Consolidated / Non-consolidated Expenses Forecast FY 2017 FY 2016 Growth % change (actual) Consolidated: Operating Expenses 76,400 77,329 －929 －1.2％ Non-consolidated: Operating Expenses 59,800 61,644 －1,844 －3.0％ Non-consolidated: TV Program Expenses 17,400 17,853 －453 －2.5％ 23 ©ABC2017

  25. Slide 25: Capital Investments / Depreciation and amortization

    Capital Investments / Depreciation and amortization FY2017 1H FY 2016 Non- Non- Consolidated Consolidated consolidated consolidated Capital Investments ¥2.6 billion ¥1.0 billion ¥3.9 billion ¥2.6 billion Depreciation and ¥1.5 billion ¥1.1 billion ¥2.8 billion ¥2.2 billion amortization (Amounts less

  26. Slide 26: Dividends

    Dividends 30 25 Interim dividend Year-end dividend 20 17 15 10 9 12 10 10 7.5 4.5 4.5 5.5 4.5 5 9 9 10 4.5 4.5 4.5 4.5 4.5 6 6 0 25 ©ABC2017

  27. Slide 27: Programs, Television Viewer Ratings

    Programs, Television Viewer Ratings 26 ©ABC2017

  28. Slide 28: Television Viewer Ratings for April-September 2017

    Television Viewer Ratings for April-September 2017 (Kansai region) All-day Golden time Prime Prime 2 （6:00-24:00） （19:00-22:00） （19:00-23:00） （23:00-25:00） YTV YTV YTV ABC １ 8.0 12.0 12.0 7.8(-0.1p*) MBS MBS ABC YTV ２ 7.4 10.6 10.8(-0.3p*) 7.5 ABC ABC MBS MBS ３ 7.3(±0p*) 10.3(-0.1p*) 10.7 5.8 KTV NH

  29. Slide 29: Television Viewer Ratings in Kansai Region

    Television Viewer Ratings in Kansai Region Note: FY2017 = 1st half All-day（6:00-24:00） Golden time（19:00-22:00） Prime（19:00-23:00） Prime 2（23:00-25:00） 28 ©ABC2017

  30. Slide 30: Review of Golden Time Programming and Strengthening of Sunday programming

    Review of Golden Time Programming and Strengthening of Sunday programming 29 ©ABC2017

  31. Slide 31: Continue to Broadcast Popular Year-end and Start-of-Year Special Programs

    Continue to Broadcast Popular Year-end and Start-of-Year Special Programs in Golden Time 30 ©ABC2017

  32. Slide 32: Enhancement of overall content strengths

    Enhancement of overall content strengths Joint production of dramas with AbemaTV : Brisk demand for catch-up video services 31 ©ABC2017

  33. Slide 33: New Businesses

    New Businesses 32 ©ABC2017

  34. Slide 34: FY2017 1H: Animation business drove earnings

    FY2017 1H : Animation business drove earnings -Increased revenue from secondary use and film revenue of the “Pretty Cure” series -Conclusion of international licensing agreement of “Koe no Katachi (A Silent Voice)” -Better-than-expected revenue from secondary use of late night anime programs -Conclu

  35. Slide 35: FY2017 2H: Anime Demand Expected to Remain Brisk

    FY2017 2H : Anime Demand Expected to Remain Brisk -Overseas distribution agreement for “VIOLET EVERGARDEN” already concluded. (Late-night anime scheduled for broadcast next January) -Secondary use of “Pretty Cure” : Remains brisk ©2017 Kana Akatsuki・Kyoto Animation / VIOLET EVERGARDEN production com

  36. Slide 36: FY2017 1H: Above the projection (Sales)

    FY2017 1H : Above the projection (Sales) FY 2020 Sales of approx. 1800000 1.7 billion yen 1600000 Actual Plan 1400000 1200000 FY2017 1H Sales of 679 1000000 million yen 800000 600000 2.0億 400000 200000 0 （単位：千円） FY 2013 FY 2014 FY 2015 FY 2016* FY 2017 FY 2018 FY 2019 FY 2020 35 ©ABC2017

  37. Slide 37: Investment in More Companies

    Investment in 2 More Companies 36 ©ABC2017

  38. Slide 38: Establishment of Overseas Business Base in Singapore

    Establishment of Overseas Business Base in Singapore “ABC HORIZON PTE. LTD.“ April 2016: Establishment of representative office in Singapore Dec 2016: Incorporated locally June 2017: Opening ceremony <Business outline> -Marketing research -Development of original content -Support overseas expansion

  39. Slide 39: Medium-Term Management Plan

    Medium-Term Management Plan 38 ©ABC2017

  40. Slide 40: Medium-Term Management Plan (2015-2017)

    Medium-Term Management Plan (2015-2017) FY 2015 FY 2016 FY 2017 Consolidated Upper: Actual Upper: Actual Upper: Forecast Lower: (Plan figures: Prior Lower: (Plan figures) Lower: (Plan figures) to revision) Net sales 81,059 82,302 80,500 （82,100） （82,400） （83,100） Operating income 4,064 4,972 4,100 （

  41. Slide 41: Trend in ABC Group's Net Sales, Operating Income Margin (Consolidated)

    Trend in ABC Group’s Net Sales, Operating Income Margin (Consolidated) Consolidated net sales 90,000 Operating income margin 10.0% 83,352 80,284 81,484 80,691 81,059 82,302 80,500 78,847 9.0% 80,000 75,947 77,914 75,787 76,068 76,691 78,162 72,327 70,626 8.2% 70,000 8.0% 7.4% 7.3% 7.1% 7.0% 60,000 5

  42. Slide 42: Announcement of Next Medium-term Management Plan

    Announcement of Next Medium-term Management Plan Next February １：Broadcasting Business ２：Housing Business ３：Toward creation of new businesses 41 ©ABC2017

  43. Slide 43: Reference Materials

    Reference Materials ©ABC2017

  44. Slide 44: List of Group Companies

    List of Group Companies Consolidated entities Reference 1 ©ABC2017

  45. Slide 45: Net Sales by Segment (Consolidated Sales of FY2016)

    Net Sales by Segment (Consolidated Sales of FY2016) Housing Business 10.9 billion yen Golf Club Business 0.8 billion yen Consolidated net sales 82.3 Broadcasting Business billion yen 70.6 billion yen Reference 2 ©ABC2017

  46. Slide 46: TV Network

    TV Network Asahi Broadcasting Corporation 20.82 million people 9.53 million households TV Asahi Corporation 43.26 million people 20.13 million households Reference 3 ©ABC2017

  47. Slide 47: Major Programs Broadcasted by ABC

    Major Programs Broadcasted by ABC Produced by “ABC” Produced by “ABC” Programs produced by Nationwide net Local programs “TV Asahi” or other programs companies Reference 4 ©ABC2017

  48. Slide 48: Types and Structure of Revenue of TV Business

    Types and Structure of Revenue of TV Business Time Sales are those to sponsors offering programs Spot “This program was sponsored by so-and-so” Time As a rule two seasons Can set up freely period (6-month contract) Units From 30 seconds From 15 seconds Broadcasting Nationwide or local network area L

  49. Slide 49: Contact/Disclaimer

    Contact/Disclaimer This presentation is intended to provide information on our business etc., not to recommend the investment in our company. And, this presentation contains forecasts and the other forward-looking statements relating to the plans, outlook, targets, and forecasts of Asahi Broadcastin

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