Nippon Television Holdings, Inc. · TSE:9404
Nippon Television — Q3 FY2023 Earnings Presentation
45 slides from Nippon Television's earnings presentation, Feb 1, 2024
Slide 1: FY2023 3Q Financial Results
FY2023 3Q 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
Slide 2: New shareholder return measures
New shareholder return measures Payment of Dividends to Foreign Shareholders Not Listed in the Shareholder Registry • Propose to the General Meeting of Shareholders to amend the Articles of Incorporation to approve dividend payments for shares held by foreign shareholders who have been refused regis
Slide 3: Overview of Financial Results and Forecast
Overview of Financial Results and Forecast
Slide 4: FY2023 3Q Highlights
FY2023 3Q Highlights Higher sales, lower operating profit Although we maintained our overwhelming share of the spot ad sales at about 30%, higher raw material prices had a negative impact on the overall ad market, causing a decline in terrestrial advertising revenue. Due to strong events, anime,
Slide 5: Nippon TV HD: Consolidated Financial Results
Nippon TV HD: Consolidated Financial Results FY2022 FY2023 (Millions of yen) YoY Change Apr.-Dec. Apr.-Dec. Net Sales 305,633 306,219 586 0.2% Operating Profit 35,383 31,062 △4,320 △12.2% Recurring Profit 38,985 37,060 △1,924 △4.9% Net Income attributable to owners of the parent 27,089 33,174 6,084
Slide 6: Net Sales YoY Change Components
Net Sales YoY Change Components (Millions of yen) HD: Consolidated Results Group Companies Nippon TV +586 Content Strategy Previous Nippon Nippon Television la belle vie MURAYAMA TIPNESS New Business Other Current period Television Events/Content period Net Sales Terrestrial Business Sales Net Sales
Slide 7: Operating Profit YoY Change Components
Operating Profit YoY Change Components (Millions of yen) HD: Consolidated Results Group Companies Nippon TV Content Strategy Previous Nippon TV la belle vie MURAYAMA TIPNESS Other and Current New Business period Consolidated period Operating ※Inc. Adjustment Operating Profit goodwill Profit Referenc
Slide 8: 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 anime, international content sales, and events Booked gain on sale of investment securities pursuant to sale of cros
Slide 9: Nippon TV: Net Sales and Cost of Sales
(Millions of yen) Nippon TV: Net Sales and Cost of Sales FY2022 FY2023 Net Sales YoY Change Apr.-Dec. Apr.-Dec. Advertising Revenue 175,011 165,307 △9,703 △5.5% Program Sales 8,290 8,253 △37 △0.5% Events/Content Business Sales 30,916 34,997 4,080 13.2% Real Estate Business 1,763 2,244 480 27.3% Tota
Slide 10: Nippon TV: Advertising Revenue
Nippon TV: Advertising Revenue FY2022 FY2023 (Millions of yen) YoY Change Apr.-Dec. Apr.-Dec. Advertising Revenue 175,011 165,307 △9,703 △5.5% Time 82,682 78,269 △4,413 △5.3% Spot 88,737 82,451 △6,285 △7.1% Digital Ad. 3,592 4,587 995 27.7% ＊Digital Ads row added in FY2022, comprised of TVer and the
Slide 11: Nippon TV: Production Costs
Nippon TV: Production Costs (Millions of yen) FY2022 FY2023 YoY Change Apr.-Dec. Apr.-Dec. 65,166 65,296 129 0.2% (Millions of yen) Apr.-Dec. Production Cost (Millions of yen) (Ref.) Production Costs(FY) 100,000 100,000 95,245 HD: Consolidated 88,421 87,526 84,544 Results 80,000 80,000 72,945 63,663
Slide 12: Nippon TV: Events/Content Business Sales and Balance
Nippon TV: Events/Content Business Sales and Balance (Millions of yen) Sales Balance FY2023 Apr.-Dec. Change FY2023 Apr.-Dec. Change Movies 2,812 △3.4% 1,205 △18.3% Events 3,722 24.6% 431 119.9% Retail Business 6,354 △4.5% 375 △2.3% HD: Consolidated Results Anime 5,045 86.8% 2,189 59.4% Group Compan
Slide 13: Financial Highlights of Group Companies
Financial Highlights of Group Companies ※(Millions of yen)（％ YoY） Nippon Television BS Nippon Corp. CS Nippon Corp. VAP Inc. TIPNESS Limited Music Corp. Net Sales 12,418 1.2% 6,779 △5.1% 6,848 7.6% 4,729 △8.2% 19,824 1.4% Operating 1,217 △19.9% 255 19.6% 1,880 19.2% 904 △8.6% 793 － Profit Recurring
Slide 14: CAPEX and Depreciation (consolidated)
CAPEX and Depreciation (consolidated) (Billions of yen) Depreciation and CAPEX amount Amortization FY2023 Apr.-Dec. 4.6 10.1 CAPEX amount Depreciation and Amortization 21.2 19.1 20.0 20.0 17.4 15.8 HD: Consolidated 14.2 14.0 13.2 13.6 13.4 Results 13.0 12.7 Group 9.9 9.0 10.0 10.0 Companies 7.0 Nipp
Slide 15: Consolidated Forecast and Dividend Forecast
Consolidated Forecast and Dividend Forecast Unchanged from previous forecast FY2022 FY2023 (Millions of yen) Change Change Result Forecast Net Sales 413,979 436,000 22,021 5.3% Operating Profit 46,593 48,000 1,407 3.0% Recurring Profit 51,775 54,000 2,225 4.3% Profit attributable to owners of parent
Slide 16: Contents Strategy
Contents Strategy
Slide 17: The Boy and the Heron by Studio Ghibli
“The Boy and the Heron” by Studio Ghibli “The Boy and the Heron” directed by Hayao Miyazaki won Best Motion Picture in the animation category at the 81st Golden Globe Awards, a first for a Japanese film. Comment from Toshio Suzuki, Producer: I was truly delighted to hear that “The Boy and the Hero
Slide 18: Ghibli Park 2nd Phase Area
Ghibli Park 2 nd Phase Area Ghibli Park 2nd phase “Mononoke no Sato” area opened on November 1, 2023. “Valley of Witch” area set to open on March 16, 2024. “Mononoke no Sato” has motifs of “Princess Mononoke” with a Japanese farming village landscape. It features an educational facility, Tatara
Slide 19: Theater My Neighbour Totoro Returns
Theater “My Neighbour Totoro” Returns Having won six awards at the Laurence Olivier Awards, Britain’s most prestigious stage honor, “My Neighbour Totoro” returned to London ‘s Barbican Theatre on November 21, 2023 and will run until March 23, 2024. Back by popular demand. This return is in respo
Slide 20: Anime Content Rollout
Anime Content Rollout Aired on Nippon TV in the fall of 2023, “Frieren: Beyond Journey’s End” and “The Apothecary Diaries” were offered on streaming platforms and anime websites and ranked among the top of the favorites. Solid hits in the anime world, they are being aired this winter as well! ©山田鐘人・
Slide 21: Global Content Rollout
Global Content Rollout ■Drama series “Rebooting” is unstoppable as it continues to sweep awards globally! ・Offered on Netflix starting December in Japan and Asia excl. China. Top 10 for 6 consecutive weeks in Japan. Still going strong even over 6 months after airing. The pop-up store at Tree Village
Slide 22: Programming Strategy
Programming Strategy
Slide 23: April Programming Improvements
April Programming Improvements Programming Strategy Starting April 2024, Nippon TV will restart its Core Max Strategy More than ever, sponsors are placing importance on the core target. Core Max Strategy aims to capture an overwhelming share of the core target. Our goal is to be number one in HD: Co
Slide 24: April Programming Improvements
April Programming Improvements In accordance with our Core Max Strategy we will push through with massive timetable improvements! HD: Consolidated Results Group Companies Nippon TV “with MUSIC” launches A new music show plus two on Saturdays at 8 pm. A dramas to make your The “face” of an iconic new
Slide 25: ACMA:GAME debuts April 2024
Launch of Mega Project for Drama Series! Sunday Drama Series: ”ACMA:GAME” debuts April 2024! From Japan to the world, Nippon TV launches mega project! Live action adaptation of the ultimate death game with ultra VFX! It’s a must-see survival HD: Consolidated Results entertainment for the whole world
Slide 26: Jan - Dec Core Target Viewer Ratings
Jan - Dec Core Target Viewer Ratings January 02, 2023 – December 31, 2023 NTV EX TBS TX CX All Day ① 2.7 ④ 1.3 ③ 1.6 ⑤ 0.5 ② 1.7 6:00 to 24:00 Prime Time ① 4.4 ④ 2.6 ② 3.1 ⑤ 1.2 ③ 2.8 19:00 to 23:00 Golden Time ① 4.6 ④ 2.6 ② 3.1 ⑤ 1.3 ③ 2.9 19:00 to 22:00 HD: Consolidated Results Non-Prime Time ① 2.
Slide 27: 2023 Viewer Ratings Ranking by Gender and Age
2023 Viewer Ratings Ranking by Gender and Age January 02, 2023 – December 31, 2023 Indivi- Core dual Target C T M1 M2 M3 M3 F1 F2 F3 F3 4-49 ４－12 13-19 20-35 36-49 50-64 Over 65 20-35 36-49 50-64 Over 65 All Day 2 1 1 1 1 1 1 3 1 1 1 2 6:00 to 24:00 Prime Time 2 1 1 1 1 1 2 4 1 1 1 2 19:00 to 23:00
Slide 28: Ranking of New Years Viewership
Ranking of New Years Viewership Viewer Rank Aired Title Total Viewers Ratings Minutes Broad- (millions) casters Kanto region, individual １ 1/3 100 th Hakone Ekiden (return leg) 46.868 17.5％ 388 30 2 1/2 100 th Hakone Ekiden (going leg) 44.754 15.7％ 375 30 Welcome the New Year Laughing! 3 12/31 (part
Slide 29: Advertising Sales, Digital & Streaming
Advertising Sales, Digital & Streaming
Slide 30: Ad Technology for Sophisticated TV Ads
Ad Technology for Sophisticated TV Ads ARM (Ad Reach Max): A project to develop an ad platform that speedily addresses the diverse requirements of sponsors through technology that leads to sophisticated ad transactions and operations. Developing an ARM Platform to make possible terrestrial ads tha
Slide 31: HJ Holdings (Hulu)
HJ Holdings (Hulu) (Unit: Millions of Yen) Net Sales Operating Profit Recurring Profit Net Income FY2023 Apr.-Dec. 25,280 985 1,049 1,047 ■FY2023 3Q saw hit content in all genres ■Hulu Store (TVOD) is robust! grabbing attention and attracting new ・BMSG FES ’23 ・SEVENTEEN TOUR 'FOLLOW' TO JAPAN subsc
Slide 32: Streaming Business: TVer (AVOD)
Streaming Business :TVer（AVOD) TVer Highlights ■Over 700 programs from all broadcasters streamed ■3Q all broadcasters, all content: Plays: 1.167 bil (+4% vs 2Q) Unique Browsers: 47.97 mil (+4% vs 2Q) ■Total app downloads: approximately 62 mil Nippon TV Initiatives Nippon TV Monthly Plays (VOD only)
Slide 33: New Digital Content Development
New Digital Content Development Vertical short drama “Mainichi Hanikamu Boku Tachi Wa” Develop content to captivate Gen Z Develop content for Gen Z with vertical short dramas, a new category Over 500 mil plays on social media (mainly TikTok) only 9 months after start (※1) Average 3 mil plays wit
Slide 34: Medium-Term Management Plan New Business, M&A
Medium-Term Management Plan New Business, M&A
Slide 35: 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 Nippon TV Life & Health- Related Business Content Strategy Total Investment ¥38 bil ¥22 b
Slide 36: IP Business for Women
IP Business for Women Acceleration of Medium-Term Management Plan Goal of New Business Creation ・”Kimino Tonarini Suwaru Hoshi.” was developed as an IP that features male voice actors and astrology. It is the first project that targets the ¥1.8 trillion market of women who appreciate manga and anime
Slide 37: Reference Materials
Reference Materials
Slide 38: Segment Results
Segment Results (Millions of yen) Segment Profit Net Sales (△ Loss) FY2022 FY2023 FY2022 FY2023 Change Change Apr.-Dec. Apr.-Dec. Apr.-Dec. Apr.-Dec. Media Content Business 283,497 283,207 △289 33,334 28,121 △5,212 Life and Health HD: Consolidated Related Business 19,559 19,824 265 △32 879 911 Resul
Slide 39: Spot Sales - Terrestrial Broadcasting (Nippon TV)
Apr.-Dec. Spot Sales ‐ Terrestrial Broadcasting (Nippon TV) Share Change Share Change FY2022 Apr.-Dec. FY2023 Apr.-Dec. （％） (%) （％） (%) 18.0% 1 Service 16.0% 39.0% Service 14.6% △ 15.2% 16.0% FY2023 Apr.-Dec. 14.0% 2 Telecom/Game 12.9% △ 32.8% Telecom/Game 11.6% △ 16.5% 12.0% FY2022 Apr.-Dec. 10.0%
Slide 40: Movie Lineup for FY2023-2024 ①
Movie Lineup for FY2023-2024 ① Date Title Distributor Friday, March 15 ★Lovesick Ellie SHOCHIKU 〇Detective Conan: The Million-dollar HD: Consolidated Friday, April 12 TOHO Results Pentagram Group Companies Nippon TV Content Strategy Friday, May 24 ★Dangerous Cops（working title） TOEI New Business Ref
Slide 41: Movie Lineup for FY2024 ②
Movie Lineup for FY2024 ② Date Title Distributor 〇ANPANMAN：Baikinman and Lulun in the TOKYO Friday, June 28 Picture Book（working title） Theatre HD: Consolidated Friday, July 12 ★Kingdom４（working title） TOHO Results Group Companies Nippon TV Content Strategy New Business Reference Materials 41
Slide 42: Event Lineup for FY2023
Event Lineup for FY2023 Date Title Saturday January 27– Frontiers of Impressionism: Saturday April 7,2024 Paintings from the Worcester Art Museum TOKYO METROPOLITAN ART MUSEUM (Tokyo Ueno) 《Tokyo》 Friday January 12 – Detective Conan HD: Consolidated Sunday February 25,2024 30th Anniversary Exhibitio
Slide 43: IP Business
IP Business Create new IP and trigger a fresh movement in the music scene. ◆”D.U.N.K. Showcase” part 2, a joint project with SKY-HI, was held in Osaka’s Kyocera Dome featuring K-pop artists alongside their Japanese counterparts. It also made a live connection to special music show “Best Artist” to c
Slide 44: IP Business
IP Business ◆In January at Yokohama Arena is event RUN! RUN! RAMPAGE X FIGHT＆LIVE SHOW, which is linked to entertainment show “THE RAMPAGE,” aired in October featuring the members who compete against each other for victory in front of their fans. ◆Music festival BEAT AX starring global artists held
Slide 45: Capital Efficiency Plans
Capital Efficiency Plans As of May 11, 2023 Promote growth strategies according to Medium-Term Management Plan •We will aim to increase sales and profits by advancing our priority targets, namely “Maximize the value of content,” “Accelerate new business creation” and “Build a wellness economic zone.
Nippon Television Holdings — Q3 FY2023 Earnings Presentation on 6ix