Nippon Television Holdings, Inc. · TSE:9404
Nippon Television — Q2 FY2021 Earnings Presentation
36 slides from Nippon Television's earnings presentation, Nov 10, 2021
Slide 1: FY2021 2Q Financial Results
FY2021 2Q Financial Results November 10, 2021 Nippon Television Holdings, Inc. 1
Slide 2: Forward-looking statements
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 prohibited. 2
Slide 3: Agenda
・Fiscal 2021 2Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy/New Business ・Sustainability Policy 3
Slide 4: Key Points of 2Q Financial Results for FY2021
Key Points of 2Q Financial Results for FY2021 Sales and profits increased due to Point significant improvement in ad market 1 ・TV ad sales recovered close to pre-COVID levels seen 2 years ago. Substantial increase driven primarily by spot ad sales, with time ads also growing due to Tokyo 2020 and th
Slide 5: FY2021 2nd Quarter Consolidated Financial Results
FY2021 2nd Quarter Consolidated Financial Results (Millions of yen) FY2020 2Q FY2021 2Q Change(%) Net Sales 174,478 194,950 11.7 Operating Profit 9,119 24,341 166.9 Recurring Profit 11,199 27,797 148.2 Net Income attributable to owners △5,656 18,440 － of the parent 5
Slide 6: Net Sales YoY Change Components
220,000 Net Sales YoY Change Components ＋2,105 (Millions of yen) △1,622 ＋2,866 200,000 ＋18,366 ＋2,626 △3,869 180,000 160,000 174,478 140,000 194,950 120,000 20,472 Increase in Profit 100,000 Previous 前期… period Nippon 日ﾃﾚ地上波… Nippon日ﾃﾚ… CS Nippon CS日本 ＨＪ TIPNESS Limited ﾃｨｯﾌﾟﾈｽ Other and その他及び… Curr
Slide 7: Recurring Profit YoY Change Components
Recurring Profit YoY Change Components 30,000 (Millions of yen) △2,887 ＋2,080 ＋594 △328 ＋2,007 25,000 20,000 ＋15,132 27,797 15,000 10,000 11,199 5,000 16,598 Increase in Profit 0 Previous 前期period Nippon TV 日ﾃﾚ放送事業 Nippon Television 日ﾃﾚ放送外事業 CSCS日本 Nippon TIPNESS Limited ﾃｨｯﾌﾟﾈｽ Accounted 持分法による for
Slide 8: CAPEX and Depreciation (Consolidated)
CAPEX and Depreciation (Consolidated) Depreciation and FY2021 2Q CAPEX amount amortization (Unit: Billions of yen) 5.1 7.8 (Billions of yen) CAPEX amount Depreciation and amortization (Billions of yen) 30.0 30.0 26.6 21.2 19.1 20.0 20.0 17.4 16.4 15.1 14.5 14.3 13.2 10.5 7.7 6.8 10.0 10.0 5.1 7.8 0.
Slide 9: Agenda
・Fiscal 2021 2Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・ Digital Strategy/New Business ・Sustainability Policy 9
Slide 10: Nippon TV Financial Results
Nippon TV Financial Results (Millions of yen) FY2020 2Q FY2021 2Q Change (%) Net Sales 128,338 144,799 12.8 Operating Profit 9,154 21,481 134.7 Recurring Profit 11,446 23,574 106.0 Net Income 14,488 16,984 17.2 10
Slide 11: Net Sales-Nippon TV
Net Sales-Nippon TV (Millions of yen) FY2020 2Q FY2021 2Q Change (%) TV advertising 98,691 117,057 18.6 revenue Program Sales 5,662 5,319 △6.0 Events/Content 22,859 21,237 △7.1 business sales Real Estate 1,125 1,184 5.2 Business Total 128,338 144,799 12.8 11
Slide 12: Nippon TV Advertising Revenue
Nippon TV Advertising Revenue (Millions of yen) FY2020 2Q FY2021 2Q Change (%) TV advertising 98,691 117,057 18.6 revenue Time 59,066 59,983 1.6 Spot 39,625 57,074 44.0 12
Slide 13: Nippon TV Cost of Sales
Nippon TV Cost of Sales (Millions of yen) FY2020 2Q FY2021 2Q Change (%) Production costs 41,952 40,975 △2.3 Personnel 10,785 10,900 1.1 Depreciation 5,465 5,227 △4.4 and amortization Events/content 16,034 17,068 6.5 business costs Others 44,945 49,145 9.3 Total 119,184 123,317 3.5 13
Slide 14: Nippon TV Production Costs
Nippon TV Production Costs (Millions of yen) FY2020 2Q FY2021 2Q Change (%) 41,952 40,975 △2.3 Production costs (2nd Quarter) 60,000 49,733 48,442 51,520 51,348 51,758 50,186 48,359 49,686 50,000 41,952 40,975 40,000 30,000 20,000 10,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (FY) 14
Slide 15: Events/Content Business Sales and Costs
Events/Content Business Sales and Costs (Millions of yen) FY2020 FY2021 FY2020 FY2021 2Q 2Q 2Q 2Q Sales 5,001 2,028 Sales 870 645 Movies Costs 3,356 1,062 IP Business Costs 218 516 Balance 1,644 967 Balance 652 129 Sales 228 1,082 Events Costs 282 1,324 Sales 4,397 618 Balance △54 △241 Content Costs
Slide 16: Financial Highlights of Other Group Companies
Financial Highlights of Other Group Companies Nippon CS Nippon (Millions of yen) BS Nippon Corp. Television VAP Inc. TIPNESS Limited Corp. Music Corp 8,057 4,913 3,436 3,788 10,962 Net Sales （11.2%) (116.2%) (△40.8%) (△29.2%) （31.4%) Operating Profit 889 95 771 813 △1,661 (Loss) (△) (18.1%) (△77.5%)
Slide 17: Agenda
・Fiscal 2021 2Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy/New Business ・Sustainability Policy 17
Slide 18: Consolidated Forecast and Dividend Forecast
Consolidated Forecast and Dividend Forecast Consolidated Forecast FY2021 Change (Millions of yen) FY2020Result Previous Forecast （%) Net Sales 391,335 400,000 2.2 Operating Profit 34,526 46,000 33.2 Recurring Profit 42,944 52,000 21.1 Profit attributable to owners of parent 24,042 41,000 70.5 配当予想 N
Slide 19: Agenda
・Fiscal 2021 2Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy/New Business ・Sustainability Policy 19
Slide 20: 2021 Annual Individual Viewer Ratings (Jan.-Oct)
2021 Annual Individual Viewer Ratings (Jan.-Oct) January 04, 2021 – October 31, 2021 2021/01/04(月)～2021/10/31(日) NTV EX TBS TX CX PUT All Day日 全 ① 4.1 ② 3.9 ③ 3.1 ⑤ 1.5 ④ 3.0 22.3 6:00 to 24:00 6時～24時 ▲0.6 ▲0.3 ▲0.3 ±0.0 ▲0.1 ▲1.2 Prime プライムTime ① 6.0 ② 5.9 ③ 4.7 ⑤ 3.3 ④ 4.5 34.4 19:00 to 23:00 19時～
Slide 21: 2021 Annual Core Target Viewer Ratings (Jan.-Oct)
2021 Annual Core Target Viewer Ratings (Jan.-Oct) January 04, 2021 – October 31, 2021 2021/01/04(月)～2021/10/31(日) NTV EX TBS TX CX PUT 全All Day 日 ① 3.5 ④ 1.7 ③ 1.8 ⑤ 0.7 ② 2.3 12.2 6:00 to 24:00 6時～24時 ▲0.7 ▲0.2 ▲0.2 ±0.0 ▲0.2 ▲1.4 Prime プライムTime ① 5.5 ④ 3.2 ③ 3.6 ⑤ 1.7 ② 4.0 21.6 19:00 to 23:00 19時
Slide 22: October Cour Strategy for Morning Shows
October Cour Strategy for Morning Shows ●"ZIP!" ★Focus on core target → aim to boost individual viewer ratings ★From the 1st week of Oct, it's irresistible lineups nonstop! →Wednesday personality: comedian Hamaie →New Thursday personality: DAIGO's social studies field trips ➡Oct ratings vs Sep: +0.4
Slide 23: Nippon TV Multi Platform Deployment Successes
Nippon TV Multi Platform Deployment Successes ●Wednesday Drama "Police in a Pod" Successfully created synergy from buzz on linear platform and online content such as YouTube videos. Hulu and AVOD enjoyed success as many records were broken and new #1s created. Total plays: 27.46 mil Average plays: 2
Slide 24: Focus of Content Business Strategy for FY2021
Focus of Content Business Strategy for FY2021 ●Film Business "Your Turn to Kill" the movie In theaters December 10, 2021 #1 on Twitter's global trending list for 5 times! Final episode marked a whopping 25% for overall viewer ratings! A title that inspired the Japanese to be a detective in their own
Slide 25: Focus of Content Business Strategy for FY2021
Focus of Content Business Strategy for FY2021 ●Anime and International Business ・Nippon TV's anime business on track to make record profits For FY2021, the anime business is on track to make record profits both for 1H and the full year. Spurred by the global stay home phenomenon, demand for anime in
Slide 26: Agenda
・Fiscal 2021 2Q Overview of Financial Results ・Highlights of Group Companies ・Fiscal 2021 Outlook ・Content Business Strategy ・Digital Strategy/New Business ・Sustainability Policy 26
Slide 27: TVer FY2021 2Q Summary
TVer FY2021 2Q Summary ◆Approximately 400 regular programs streamed ◆Total app downloads at around 41 mil (end-Sep) ◆Maximum number of monthly visitors as MUV (excl. double counting) reached 17.6 mil in Aug ◆Tie-up with official Olympics website gorin.jp created by the commercial broadcasters led to
Slide 28: HJ Holdings 2Q Summary
HJ Holdings 2Q Summary ◆Number of paid subscribers broke the historical record again and 2Q net sales was up 115.4% yoy ◆Audition show "THE FIRST" drove subscriber increase ・Following "Nizi Project", its tie-up with infotainment show "SUKKIRI" led to substantial subscriber growth ◆Strong performance
Slide 29: Nippon TV New Businesses
Nippon TV New Businesses ～8 Businesses Operated～ ●Nippon TV HR: offers human resource development/HR support ⇒Collaborate with network companies to create special curriculum on SDGs to provide to educational institutions ⇒Won the "HR Award 2020" in Professional Category ⇒2Q net sales was up 124% yoy
Slide 30: Strategic Investments
Strategic Investments ●First sustainable investment ⇒Invested in SoundFun, Inc., creators of Mirai Speaker® which uses patented technology "Kyokumen Sound"— developed for the first time and a game-changer for the 100- year history of speakers. Audio from TV are converted into sounds that are easy to
Slide 31: Reference Materials for Financial Results
Reference Materials for Financial Results 31
Slide 32: Segment Results
Segment Results (Millions of yen) Reportable segments Consolidated Adjustme Income FY2021 2Q Life and Others Total Statement Media Health Real estate nt Amount Content Related Total recorded Related Business business Business Net Sales 181,038 10,725 5,158 196,922 3,572 200,494 △5,544 194,950 Segmen
Slide 33: TV advertising Revenue YoY
TV advertising Revenue YoY FY2020 FY2021 FY2020 FY2021 Time Spot (%) (%) (%) (%) April △2.4 △4.8 April △24.7 25.9 May 1.9 △1.2 May △40.2 79.8 June △3.1 0.4 June △47.5 100.3 July △3.8 8.2 July △32.6 29.3 August 0.6 14.5 August △26.4 18.2 September △11.6 △8.8 September △18.5 33.9 33
Slide 34: Spot Sales - Terrestrial Broadcasting (Nippon TV)
Spot Sales ‐ Terrestrial Broadcasting (Nippon TV) Share Change Share Change FY2020 2Q FY2021 2Q 20.0% (%) (%) (%) (%) 18.0% 16.0% 1 Telecom/game 17.7 △ 4.2 Telecom/game 18.4 49.6 14.0% FY2020 2Q 12.0% FY2021 2Q 2 Cosmetics/toiletries 11.6 △ 36.1 Service 10.4 75.5 10.0% 8.0% 3 Service 8.6 △ 47.4 Cosm
Slide 35: Movie Lineup for 2021-2022
Movie Lineup for 2021-2022 ☆ Lead manager, Nittele ★=Joint Secretary-General of Nippon Telephone Corporation Date Title Distributor December ☆Your Turn to Kill: The Movie TOHO 10 January ☆noise WB 28,2022 Coming Soon ★The Deer King TOHO 35
Slide 36: Event Lineup for 2021-2022
Event Lineup for 2021-2022 ※Do to COVID-19, events may be postponed or canceled Date Event “WHO IS BANKSY？” EXHIBITION 【Tokyo】 From Saturday, August 21 to Sunday, December 5, 2021 HIDEAKI ANNO EXHIBITION 【Tokyo】 From Friday, October 1 to Sunday, December 19, 2021 Japan Musical Festival2022 Friday, J
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