Asahi Broadcasting Group Holdings Corporation · TSE:9405

Asahi Broadcasting — FY2017 Earnings Presentation

50 slides from Asahi Broadcasting's earnings presentation, May 18, 2018

  1. Slide 1: Earnings Reference for Fiscal 2017

    Note: The following document is an English translation of the Japanese-language original. Asahi Broadcasting Group Holdings Corporation Earnings Reference for FISCAL 2017 (The fiscal year ending March 31, 2018) May 18, 2018 Securities Code：9405 ©ABC2018

  2. Slide 2: New Group Structure and Medium-Term Management Plan

    New Group Structure and Medium-Term Management Plan 1 ©ABC2018

  3. Slide 3: Certified Broadcasting Holding Company Structure Launched

    ABC HORIZON PTE. LTD. Other businesses Certified Broadcasting Holding Company Structure Launched ABC DREAM VENTURES, Inc. ABC Kosan Co., Ltd. Housing business Golf club business ©ABC2018 ABC GOLF CLUB INCORPORATED （Certified broadcasting holding company） Asahi Broadcasting Group ABC Development Corp

  4. Slide 4: Summary of Medium-Term Management Plan (2015-2017)

    Summary of Medium-Term Management Plan (2015-2017) Management Plan numerical targets FY2017 Difference Net sales 83,100 80,991 -2,109 Operating income 4,400 4,250 -150 Ordinary income 4,700 4,539 -161 Profit attributable to owners of parent 2,900 2,691 -209 Operating income margin 5.3% 5.2% -0.1％ ・A

  5. Slide 5: 2018-2020 Medium-term Management Plan SUNRISE

    2018-2020 Medium-term Management Plan “SUNRISE” 100,000 10,000 80,000 80,991 89,000 8,000 60,000 6,000 6,000 4,539 40,000 4,000 20,000 2,000 0 0 FY2017 (actual) FY2020 (target) 4 ©ABC2018

  6. Slide 6: FY2020: Numerical Targets by Segment

    FY2020: Numerical Targets by Segment Broadcasting FY 2020 FY 2017 (actual) Net sales 74,600 68,645 Operating income 4,830 3,116 Housing FY 2020 FY 2017 (actual) Net sales 13,500 11,474 Operating income 1,120 1,083 Golf Club FY 2020 FY 2017 (actual) Net sales 900 871 Operating income 40 49 Adjustment

  7. Slide 7: Earnings and Forecast

    Earnings and Forecast 6 ©ABC2018

  8. Slide 8: Consolidated Earnings

    Consolidated Earnings FY2017 FY2016 Growth % change Net sales 80,991 82,302 -1,310 -1.6％ Operating income 4,250 4,972 -722 -14.5％ Ordinary income 4,539 5,261 -722 -13.7％ Profit attributable to 2,691 3,416 -724 -21.2％ owners of parent 7 ©ABC2018

  9. Slide 9: Consolidated Net Sales in the Past Years

    Consolidated Net Sales in the Past 5 Years 1st half Full year 90,000 81,484 80,691 81,059 82,302 80,991 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） 8 ©ABC2018

  10. Slide 10: Consolidated Operating Income in the Past Years

    Consolidated Operating Income in the Past 5 Years 1st half Full year 6,000 5,791 4,972 5,000 4,684 4,250 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） 9 ©ABC2018

  11. Slide 11: Earnings by Segment

    Earnings by Segment Broadcasting FY2017 FY2016 Growth % change Net sales 68,645 70,568 -1,923 -2.7％ Operating income 3,116 3,809 -693 -18.2％ Housing FY2017 FY2016 Growth % change Net sales 11,474 10,924 550 5.0％ Operating income 1,083 1,143 -60 -5.3％ Golf Club FY2017 FY2016 Growth % change Net sales

  12. Slide 12: Non-consolidated Earnings (ABC)

    Non-consolidated Earnings (ABC) FY2017 FY2016 Growth % change Net sales 62,545 65,130 -2,585 -4.0％ Operating income 2,649 3,485 -835 -24.0％ Ordinary income 3,022 3,891 -868 -22.3％ Profit 2,018 2,867 -848 -29.6％ 11 ©ABC2018

  13. Slide 13: Television Broadcasting Business Revenue

    Television Broadcasting Business Revenue (Terrestrial broadcast) ＜Revenue＞ FY2017 FY2016 Growth % change Television broadcasting business revenue 57,041 58,264 -1,223 -2.1% Breakdowns Network time advertising 13,964 14,684 -720 -4.9% revenue Time Local time advertising 6,004 5,592 411 7.4% revenue S

  14. Slide 14: Broadcasting Business Revenue (Non-Terrestrial)

    Broadcasting Business Revenue (Non-Terrestrial) FY2017 FY2016 Growth % change Radio broadcasting revenue 2,637 2,842 -204 -7.2％ Events revenue 1,506 2,497 -990 -39.7％ Content related revenue 900 1,071 -170 -15.9％ Content related revenue 1,488 ※ 914 - - CS broadcasting revenue 3,122 3,299 -177 -5.4％

  15. Slide 15: Higher Revenue and Lower Profit from the Housing Business

    Higher Revenue and Lower Profit from the 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) 12,000 11,474 10,924 9,824 10,155 10,424 15.0 10,000 8,879 9,039 13.4 8,804 8,21

  16. Slide 16: Consolidated / Non-consolidated Expenses

    Consolidated / Non-consolidated Expenses Consolidated FY2017 FY2016 Growth % change Cost of Sales 53,005 53,788 -782 -1.5％ Selling, General and Administrative Expenses 23,735 23,541 194 0.8％ Total Operating Expenses 76,741 77,329 -588 -0.8％ Non-consolidated FY2017 FY2016 Growth % change Cost of Sale

  17. Slide 17: Consolidated Earnings Forecast

    Consolidated Earnings Forecast FY 2017 FY 2018 Growth % change (actual) Net sales 81,000 80,991 8 0.0％ Operating income 2,700 4,250 -1,550 -36.5％ Ordinary income 3,000 4,539 -1,539 -33.9％ Profit attributable to owners of parent 2,700 2,691 8 0.3％ 16 ©ABC2018

  18. Slide 18: Earnings Forecast by Segment

    Earnings Forecast by Segment Broadcasting FY 2018 FY 2017 (actual) Net sales 68,200 68,645 Operating income 1,900 3,116 Housing FY 2018 FY 2017 (actual) Net sales 11,900 11,474 Operating income 960 1,083 Golf Club FY 2018 FY 2017 (actual) Net sales 900 871 Operating income 30 49 Adjustments FY 2018

  19. Slide 19: Television Broadcasting Business: Revenue/Expense Forecast (Terrestrial)

    Television Broadcasting Business : Revenue/Expense Forecast (Terrestrial) ＜Revenue＞ FY 2017 FY 2018 Growth % change (actual) Television broadcasting business revenue 55,600 57,041 -1,441 -2.5% Breakdowns Network time advertising revenue 13,600 13,964 -364 -2.6% Time Local time advertising revenue 5,

  20. Slide 20: Broadcasting Business Revenue Forecast (Non-Terrestrial)

    Broadcasting Business Revenue Forecast (Non-Terrestrial) ＜Revenue＞ FY 2017 FY 2018 Growth % change (actual) ABC FRONTIER Content related HOLDINGS, INC. revenue 1,600 1,488 111 7.5％ CS broadcasting Sky-A revenue 3,100 3,122 -22 -0.7％ TV shopping AMC business revenue 1,500 1,413 86 6.1％ Radio ABC Radi

  21. Slide 21: Capital Investments / Depreciation and Amortization

    Capital Investments / Depreciation and Amortization FY 2018 FY 2017 Broadcasting Broadcasting Consolidated Consolidated business business Capital Investments ¥4.1 billion ¥3.8 billion ¥5.5 billion ¥3.0 billion Depreciation and Amortization ¥2.9 billion ¥2.2 billion ¥3.0 billion ¥2.3 billion (Amounts

  22. Slide 22: Dividends

    Dividends 30 25 Interim dividend Year-end dividend 20 17 15 10 10 9 12 10 10 7.5 4.5 5.5 4.5 5 9 9 10 10 4.5 4.5 4.5 4.5 6 6 0 21 ©ABC2018

  23. Slide 23: ABC TV Business

    22 ABC TV Business ©ABC2018 A B Cc -_

  24. Slide 24: Television Viewer Ratings in Kansai Region

    Television Viewer Ratings in Kansai Region All-day（6:00-24:00） Golden time（19:00-22:00） Prime（19:00-23:00） Prime 2（23:00-25:00） 23 ©ABC2018

  25. Slide 25: Television Viewer Ratings for FY2017 (Kansai region)

    Television Viewer Ratings for FY2017 (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 12.1 11.9 7.6 (-0.6p*) ABC ABC ABC YTV ２ MBS 10.8 (-0.3p*) 11.3 (-0.4p*) 7.5 7.4 (-0.2p*) MBS MBS MBS ３ ＊＊＊ 10.7 10.8 5.8 KTV NHK KTV KT

  26. Slide 26: High Viewer Ratings for Annual Special Programs

    FY2017: High Viewer Ratings for Special Programs, Strong Performance from National Television Network Golden Time 2 Programs High Viewer Ratings for Annual Special Programs [Golden Time National Television [Sunday LIVE!!] Network Program] ‘Takeshi's Medical Check-up Show’ New Sunday morning program

  27. Slide 27: Television Broadcasting Business Revenue

    Television Broadcasting Business Revenue (Terrestrial broadcast) ＜Revenue＞ FY2017 FY2016 Growth % change Television broadcasting business revenue 57,041 58,264 -1,223 -2.1% Breakdowns Network time advertising 13,964 14,684 -720 -4.9% revenue Time Local time advertising 6,004 5,592 411 7.4% revenue S

  28. Slide 28: Television Broadcasting Business Background of the Business Results

    Television Broadcasting Business Background of the Business Results Network time Local time 27 ©ABC2018

  29. Slide 29: 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% 3rd quarter 9,402 9,523 -120 -1.3% 4th quarter 8,765 9,270 -504 -5.4% 2nd half 18,167 18,793 -625 -3.3% Full Fiscal Year

  30. Slide 30: TV Spot Sales Revenue by Top Industry Sector

    TV spot sales revenue (Terrestrial broadcast: By Top 20 industry sector ) FY2017 FY2016 Industry sector YoY Composition rate YoY Composition rate Information/Telecommunication 94.6% 10.8% 129.7% 11.2% Foods 99.2% 9.8% 103.5% 9.7% Automobile 109.3% 8.1% 103.6% 7.3% Pharmaceutical/Medical products 95.

  31. Slide 31: Television Broadcasting Business: Revenue/Expense Forecast (Terrestrial)

    Television Broadcasting Business : Revenue/Expense Forecast (Terrestrial) ＜Revenue＞ FY 2017 FY 2018 Growth % change (actual) Television broadcasting business revenue 55,600 57,041 -1,441 -2.5% Breakdowns Network time advertising revenue 13,600 13,964 -364 -2.6% Time Local time advertising revenue 5,

  32. Slide 32: At ABC TV now: Everything is for content

    Focusing on the broadcasting business and becoming a preferred content creator Situation until now Changes in the business environment At ABC TV now on “Everything is for content” Expand spot advertising share with timetable Expand profit-earning opportunities other than revisions that place importa

  33. Slide 33: FY2018: New Programs & High School Baseball 100th Commemorative Tournament

    FY2018: New Programs & High School Baseball 100th Commemorative Tournament 32 ©ABC2018

  34. Slide 34: FY2018: Broadcast Area Expansion and Flourishing Events

    FY2018: Broadcast Area Expansion and Flourishing Events 33 ©ABC2018

  35. Slide 35: New Medium-Term Management Plan and Future Development

    New Medium-Term Management Plan and Future Development 34 ©ABC2018

  36. Slide 36: FY2017 Sales Exceeded the Plan

    FY2017 Sales Exceeded the Plan Initial plan 2,500 2500000 FY2020 Approx. 1.7 billion Actual yen forecast 2,000 2000000 Approx. 1.5 billion yen (Exceeded the forecast of approx. 1.2 billion yen） 1,500 1500000 1,000 1000000 2.0億 500 500000 （単位：千円） 0 FY２０１３ FY２０１４ FY２０１５ FY２０１６ FY２０１７ FY２０１８ FY２０１９ FY２

  37. Slide 37: Upward Revision of Target (Sales)

    Upward Revision of Target (Sales) Revised upward to Plan 2,500 2500000 2.3 billion yen Actual 2,000 2000000 FY2017：Approx. 1.5 billion yen 1,500 1500000 1,000 1000000 2.0億 500 500000 （単位：千円） 0 FY２０１３ FY２０１４ FY２０１５ FY２０１６ FY２０１７ FY２０１８ FY２０１９ FY２０２０ (Note : The FY2016 figures are for July 2016 to Mar

  38. Slide 38: Priority FY2018: Strong Animation Business Performance

    Priority 1 FY2018: Forecast of a Revenue Increase on Strong Animation Business Performance - Strong revenue from re-use for “HUGTTO! PRECURE”, begun in February - Strong overseas sales of late night anime programs © DARLING in the FRANXX © ABC-A /Toei Animation Production Committee - Distribution bu

  39. Slide 39: Priority: Further Business Expansion Leading up to FY2020

    Priority 2 Further Business Expansion Leading up to FY2020 Opening of new exhibition facilities in Housing the Tokyo Metro and Kansai regions Exhibition (Tokyo Metro: +1 / Kansai: +1) Considering opening new centers to HDC business follow those in Kobe, Osaka, and Nagoya New business development tha

  40. Slide 40: Priority FY2018: Outlook for Higher Revenue from the Housing Business

    Priority 2 FY2018: Outlook for Higher Revenue from the Housing Business Housing FY 2018 FY 2017 (actual) Net sales 11,900 11,474 Operating income 960 (Note) 1,083 2. Housing Design Center (HDC) 3. Real estate business 39 ©ABC2018

  41. Slide 41: Priority: Growth Investment, International Business

    Priority 3 Growth Investment, International Business Establishment of the Business Development Division directly under the president Investment Business Department International Business Department 3-year investment budget ★Target: International business sales 20.0 billion yen 0.5 billion yen ⇒ 2.7

  42. Slide 42: 2018-2020 Medium-term Management Plan SUNRISE

    2018-2020 Medium-term Management Plan “SUNRISE” 100,000 10,000 Net Sales 81,000 80,000 80,991 89,000 8,000 60,000 6,000 6,000 4,539 40,000 4,000 3,000 20,000 2,000 0 0 FY2017(actual) FY2018(forcast) FY2020(target) 41 ©ABC2018

  43. Slide 43: Reference Materials

    Reference Materials ©ABC2018

  44. Slide 44: List of Group Companies

    List of Group Companies Management of corporate venture capital Reference 1 ©ABC2018

  45. Slide 45: Net Sales by Segment (Consolidated Sales of FY2017)

    Net Sales by Segment (Consolidated Sales of FY2017) Housing Business 11.5 billion yen Golf Club Business 0.9 billion yen Consolidated net sales Broadcasting Business 81.0 billion yen 68.6 billion yen Reference 2 ©ABC2018

  46. Slide 46: Trend in the Broadcasting Business Operating Income Margin

    Trend in the “Broadcasting Business” Operating Income Margin Net sales (1st half) Net sales (Full year) Operating profit margin (Full year) 73,471 70,461 70,739 70,568 8.0 68,519 68,957 69,688 69,794 68,645 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 4.5 4.0 4.0 37,997 3.9 40,

  47. Slide 47: TV Network

    TV Network Asahi Television Broadcasting Corporation 20.82 million people 9.53 million households TV Asahi Corporation 43.26 million people 20.13 million households Reference 4 ©ABC2018

  48. Slide 48: Major Programs Broadcasted by ABC TV

    Major Programs Broadcasted by ABC TV Produced by “ABC TV” Programs produced by Produced by “ABC TV” Nationwide net “TV Asahi” or other Local programs programs companies Reference 5 ©ABC2018

  49. Slide 49: 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

  50. Slide 50: 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

Asahi Broadcasting Group Holdings — FY2017 Earnings Presentation on 6ix