Sky Perfect Jsat Corporation · TSE:9412
Sky Perfect Jsat — Q1 FY2007 Earnings Presentation
31 slides from Sky Perfect Jsat's earnings presentation, Aug 9, 2007
Slide 1: Financial Summary of 1Q/FY2007 and Our Business Strategy
SKY Perfect JSAT Group Financial Summary of 1Q/FY2007 and Our Business Strategy August 9, 2007 SKY Perfect JSAT Corporation
Slide 2: Forward-looking Statements
Forward-looking Statements Statements about the SKY Perfect JSAT Group’s forecasts, strategies, management policies and objectives contained in this presentation that are not based on historical facts constitute forward-looking statements. These statements are strictly based on management's assumpti
Slide 3: Major Topics
Major Topics Operations Operations ■ ■Announced AnnouncedthetheGroup’s Group’sconsolidated consolidatedresults resultsfor forthe thefirst firsttime, time,taking takinggoodwill goodwilland andtax tax effect associated with consolidation into account. effect associated with consolidation into account.
Slide 4: Financial Summary of 1Q/FY2007
Financial Summary of 1Q/FY2007
Slide 5: 1Q/FY2007: Summary of Consolidated Statements of Income
1Q/FY2007: Summary of Consolidated Statements of Income (Millions of Yen) SKY Perfect JSAT SKY PerfecTV Group JSAT (Consolidated) (Consolidated) Consolidated Revenues 400 9,711 22,565 30,162 Operating Income 6 2,470 608 3,022 Ordinary Income -39 2,862 805 3,313 Net Income -39 2,028 683 6,170 Dividen
Slide 6: Goodwill and Tax Effect Accounting
Goodwill and Tax Effect Accounting Goodwill Goodwill ■ ■Goodwill Goodwillhas hasbeen beenprovisionary provisionarycalculated calculatedas as14.6 14.6billion billionyen, yen,based basedon onthe theestimated estimated market value of the JSAT Group’s assets and liabilities and accounting consideration
Slide 7: 1Q/FY2007: Breakdown of Revenues by Business Sector
1Q/FY2007: Breakdown of Revenues by Business Sector (Millions of Yen) 1Q/FY2006*5 % of total 1Q/FY2007 % of total Satellite Broadcasting*1 22,812 79.9% 23,541 78.1% Satellite Communication 3,880 13.6% 4,226 14.0% Wired Broadcasting 975 3.4% 1,527 5.1% Other Operations 855 3.0% 867 2.9% Total Operati
Slide 8: 1Q/FY2007: Consolidated Operating Results
1Q/FY2007: Consolidated Operating Results (Millions of Yen) SKY Cable SKY JSAT SKY Company SKY Satellite Perfect televi- Perfect Group JSAT DNCC PPVJ OptiCast Perfect Name Perfect Int’l Network Marke- sion Well Conso- JSAT ting Adachi Think lidated Content Major Satellite Broad- Satellite Satellite
Slide 9: FY2007: Revision of Results Forecast
FY2007: Revision of Results Forecast (Millions of Yen) SKY Perfect JSAT Consolidated SKY Perfect JSAT Consolidated Previous Forecast Revised Forecast FY2007 Forecast Interim Full-Year Interim Full-Year Revenues 60,000 125,000 60,000 125,000 Operating Income 2,000 5,500 4,000 5,500 Ordinary Income 2,
Slide 10: 1Q/2007: Summary of Consolidated Balance Sheets
1Q/2007: Summary of Consolidated Balance Sheets (Millions of Yen) JSAT SKY Perfect SKY Perfect JSAT (Consolidated) (Consolidated) (Consolidated) Current Assets 32,455 67,581 79,231 Fixed Assets 136,240 56,580 203,405 Total Assets 168,696 124,161 282,636 Current Liabilities 16,979 29,412 40,808 Fixed
Slide 11: 1Q/2007: Summary of Consolidated Cash Flows
1Q/2007: Summary of Consolidated Cash Flows (Millions of Yen) SKY Perfect JSAT (Consolidated) Net Cash From Operating Activities 10,121 Net Cash From Investing Activities -9,596 Net Cash From Financing Activities -3,849 Effect of Exchange Rate Changes -5 Net Increase (Decrease) in Cash and Cash Equi
Slide 12: Number of New Subscribers
Number of New Subscribers (Thousands) World Cup 134 2 128 124 1 4 2 10 106 7 39 2 94 5 2 4 47 51 37 33 89 62 68 66 54 1Q/FY2006 2Q/FY2006 3Q/FY2006 4Q/FY2007 1Q/FY2007 SKY PerfecTV! e2 by SKY PerfecTV! SKY PerfecTV! HIKARI Other Wired Services ©SKY Perfect JSAT Corporation All rights reserved. 11
Slide 13: 1Q/2007: Individual Churn Rate
1Q/2007: Individual Churn Rate 1Q 2Q 3Q 4Q Full-Year FY2005 8.3% 8.3% 8.8% 9.0% 8.6% FY2006 9.0% 9.9% 10.5% 11.3% 10.2% FY2007 11.6% E9.2% 14% 11.9% 11.9% 12% 11.3% 11.2% 10% 8% 6% Fiscal year-end 4% Season-end of professional baseball FY2006 FY2007 2% World Cup 0% Apr. May Jun. Jul. Aug. Sep. Oct.
Slide 14: Average Revenues per User (ARPU)
Average Revenues per User (ARPU) (SKY PerfecTV! and e2 by SKY PerfecTV!) Subscription Fee per Subscriber Subscriber-related Revenues per Subscriber (Yen) (Yen) 1,374 1,351 1,353 1,346 3,412 1,335 3,388 3,358 3,317 3,324 175 153 169 175 153 169 163 170 163 170 233 244 229 210 206 40 41 39 36 35 769 7
Slide 15: Subscriber Acquisition Cost (SAC)
Subscriber Acquisition Cost (SAC) (SKY PerfecTV! and e2 by SKY PerfecTV!) Total SAC SAC per Subscriber (Millions of Yen) (Yen) 4,815 26,667 26,801 1402 10,680 10,044 3,133 1,367 1,174 5,706 7,568 730 885 10,282 9,189 1,316 1,074 1Q/FY06 1Q/FY07 1Q/FY06 1Q/FY07 Expenses relating free broadcasting Sal
Slide 16: Group Business Strategy
Group Business Strategy
Slide 17: Increase the Focus on Subscribers and Bolster Customer Service
Increase the Focus on Subscribers and Bolster Customer Service Initiatives Initiativesto toincrease increasethe thefocus focuson onsubscribers subscribers ■The ■TheSubscriber SubscriberFirst FirstProject Project(from (fromJanuary January2007) 2007) Initiative Initiativefor forthe theentire entireCom
Slide 18: Progress in HD Broadcasting
Progress in HD Broadcasting Service Present status FY2007 Forecast Measures in the mid-term management plan Three channels Add one or two Expand to approximately ten available; channels channels Star Channel HV (Japanese Movie Ch. (ch.233),SKY PerfecTV! HD launch scheduled in Hi-Vision (ch.800), Sep
Slide 19: Acquire Rights to Broadcast Serie A Soccer Matches and Establish Set Cooperation with WOWOW
Acquire Rights to Broadcast Serie A Soccer Matches and Establish Set Cooperation with WOWOW ■ Acquired CS broadcasting rights in Japan for Serie A matches in the 2007‐08 season. ■Released soccer sets incorporated with WOWOW. ÆContinue to provide high-quality soccer contents in the future. European l
Slide 20: SKY PerfecTV! - Core Satellite Service
SKY PerfecTV! - Core Satellite Service (Thousands) Number of Total Subscribers Present Subscribers (FY2006) Target in Mid-term 4,000 Management Plan (FY2011): 3,000 3.2 million → 3.6 million 2,000 1,000 0 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 Initiatives Initia
Slide 21: e2 by SKY PerfecTV!
e2 by SKY PerfecTV! -Service through Digital TVs with Built-in Tuners (Thousands) Number of Total Subscribers Present Subscribers (FY2006) Target in Mid-term 600 Management Plan (FY2011): 500 400 0.4 million → 1.8 million 300 200 100 0 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 Initiatives Initiative
Slide 22: Take-up of e2 by SKY PerfecTV!
Take-up of e2 by SKY PerfecTV! (Tens of thousands <Cumulative Sales of Compatible Devices for Digital-Broadcasting: Results and Forecasts> of units shipped) 7,000 (JEITA Results and Predictions) 6,000 5,000 4,000 3,000 2,000 1,000 0 2003 2004 2005 2006 2007 (E) 2008 (E) 2009 (E) 2010 (E) 2011 (E) (T
Slide 23: SKY PerfecTV! HIKARI - FTTH (RF) Service
SKY PerfecTV! HIKARI - FTTH (RF) Service (Thousands) Number of Total Subscribers Present Subscribers (FY2006) Target in Mid-term 45 Management Plan (FY2011): 40 35 0.03 million → 0.8 million 30 25 20 15 10 5 0 FY2004 FY2005 FY2006 FY2007 Initiatives Initiativesfor forFY2007 FY2007 Initiatives Initia
Slide 24: Number of Individual Subscribers
Number of Individual Subscribers (SKY PerfecTV! HIKARI) (Thousands) 140 10 10thousand thousandnew newsubscribers subscribersin in FY07/1Q FY07/1Q(cumulative (cumulativetotal totalof of 120 37 37thousand thousandsubscribers) subscribers) 100 Expand Expandmarket marketininline linewith withincrease
Slide 25: Expansion of Service Areas
Expansion of Service Areas (SKY PerfecTV! HIKARI) Increase of 27% in households with expansion in major urban areas (8.74 million Æ 11.09 million households) Increase of 35% in number of household in Tokyo metropolitan area (6.79 million -> 9.14 million households) Subscriptions for FTTH by NTT (mil
Slide 26: Mobile, IPTV and Other Services
Mobile, IPTV and Other Services Mobile, Target in Mid-term Management IPTV and Other Plan (FY2011): Services 1.3 million [Mobile] Contents distribution service offering soccer coverage is available. SKY PerfecTV! can transmit the programs that they subscribe to a PDA terminal. Future development
Slide 27: Launch of the JCSAT-11
Launch of the JCSAT-11 (Replacement for Backup Satellite) Image of JCSAT-11 Outline of JCSAT-11 launch The launch of the JCSAT-11 is scheduled to replace the JSCAT-R currently in operation. The JCSAT-R is being operated as backup equipment for other JCSAT satellites. Launch date: Early September Lau
Slide 28: Progress in Global Business Development
Progress in Global Business Development Focus on global business Continuous launch of new satellites Cooperation with Intelsat, Ltd. has developed January 2007 Made the Hong Kong Representative Office a Horizons-2 launch branch office Scheduled launch date: Late 2007 July 2007 Coverage area: Transfe
Slide 29: References
References
Slide 30: Mid-Term Projections
Mid-Term Projections Number of Individual Subscribers Revenues / EBITDA / Ordinary Income*1 (thousand) (¥ billion) 7,500 240 1,300 800 1,800 3,668 41 116 28 357 3,600 50 3,202 38 28 12 FY2006 FY2011 FY2006 FY2011 FY2006 FY2011 FY2006 FY2011 Revenues EBITDA *2 Ordinary Income SKY PerfecTV! e2 by SKY
Slide 31: Business Projections (FY2007-2011)
Business Projections (FY2007-2011) Milestones of each platform FY2007 FY2008 FY2009 FY2010 FY2011 South Beijing Africa Foot Olympics ball World SKY PerfecTV! Cup Launch SKY PerfecTV! HD Phase 1 (Scheduled for summer 2008): PPV (Films, adult entertainment, soccer) Premium services, etc. (10 channels)