Nippon Television Holdings, Inc. · TSE:9404
Nippon Television — FY2023 2Q Earnings Presentation
46 slides from Nippon Television's earnings presentation, Nov 2, 2023
Slide 1: FY2023 2Q Financial Results
Nippon Television Holdings, Inc. FY2023 2Q Financial Results November 02, 2023
Slide 2: Overview of Financial Results
Overview of 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 presentati
Slide 3: FY2023 2Q Highlights
FY2023 2Q Highlights Lower sales and operating profit ■Although we maintained our overwhelming share of the spot ad sales at around 30%, higher raw material prices had a negative impact on the overall ad market, causing a decline in terrestrial advertising revenue. ■Balance of payments at Nippon TV
Slide 4: Overview of Financial Results and Forecast
Overview of Financial Results and Forecast
Slide 5: Nippon TV HD: Consolidated Financial Results
Nippon TV HD: Consolidated Financial Results FY2022 1H FY2023 1H (Millions of yen) YoY Change （Apr.-Sep.） （Apr.-Sep.） Net Sales 199,441 196,000 △3,440 △1.7% Operating Profit 19,302 16,796 △2,506 △13.0% Recurring Profit 21,263 20,846 △416 △2.0% Net Income attributable to owners of the parent 14,246 1
Slide 6: Net Sales YoY Change Components
Net Sales YoY Change Components (Millions of yen) HD: Consolidated Results Group Companies Nippon TV △ 3,440 Content Strategy Previous Nippon Nippon MURAYAMA TIPNESS Other Current New Business Television period Television period Net Sales Terrestrial Events/Content Net Sales Reference Advertising Bu
Slide 7: Operating Profit YoY Change Components
Operating Profit YoY Change Components (Millions of yen) HD: Consolidated Results Group Companies Nippon TV △2,506 Content Strategy Previous Nippon TV MURAYAMA TIPNESS Other and Current period Consolidated period New Business Operating Operating Adjustment Profit Profit Reference 7 Materials
Slide 8: 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 8,240 △0.1% 4,638 △6.4% 4,357 6.9% 3,154 △12.1% 13,231 1.5% Operating 419 △41.0% 3 ー 1,162 20.6% 909 43.4% 369 ー Profit Recurring 454 △37
Slide 9: Nippon TV: Financial Results
Nippon TV: Financial Results FY2022 1H FY2023 1H (Millions of yen) YoY Change （Apr.-Sep.） （Apr.-Sep.） Net Sales 140,443 136,265 △4,178 △3.0% Operating Profit 14,732 10,892 △3,840 △26.1% Recurring Profit 18,349 13,600 △4,749 △25.9% HD: Consolidated Results Net Income 12,525 9,138 △3,387 △27.0% Group
Slide 10: Nippon TV: Net Sales and Cost of Sales
(Millions of yen) Nippon TV: Net Sales and Cost of Sales FY2022 1H FY2023 1H Net Sales YoY Change （Apr.-Sep.） （Apr.-Sep.） Advertising Revenue 112,153 105,635 △6,518 △5.8% Program Sales 5,456 5,462 6 0.1% Events/Content Business Sales 21,662 23,679 2,017 9.3% Real Estate Business 1,171 1,488 316 27.0
Slide 11: Nippon TV: Advertising Revenue
Nippon TV: Advertising Revenue FY2022 1H FY2023 1H (Millions of yen) YoY Change （Apr.-Sep.） （Apr.-Sep.） Advertising Revenue 112,153 105,635 △6,518 △5.8% Time 54,760 51,505 △3,254 △5.9% Spot 55,307 51,564 △3,742 △6.8% Digital Ad. 2,086 2,565 478 22.9% ＊Digital Ads row added in FY2022, HD: Consolidate
Slide 12: Nippon TV: Production Costs
Nippon TV: Production Costs (Millions of yen) FY2022 1H FY2023 1H YoY Change （Apr.-Sep.） （Apr.-Sep.） 43,337 44,080 743 1.7% (Millions of yen) (Millions of yen) 1H Production Costs (Ref.) Production Costs(FY) 100,000 100,000 95,245 88,421 87,526 84,544 HD: Consolidated 80,000 80,000 Results Group 60,
Slide 13: Nippon TV: Events/Content Business Sales and Balance
Nippon TV: Events/Content Business Sales and Balance (Millions of yen) Sales Balance FY2023 1H FY2023 1H Change Change （Apr.-Sep.） （Apr.-Sep.） Movies 2,115 2.0% 1,080 △2.9% Events 2,869 55.3% 370 277.6% Retail Business 3,650 △9.0% 152 △33.6% HD: Consolidated Results Anime 3,485 83.2% 1,591 65.5% Gro
Slide 14: CAPEX and Depreciation (consolidated)
CAPEX and Depreciation (consolidated) Depreciation and CAPEX amount Amortization FY2023 1H (Apr.-Sep.) 3.7 6.6 CAPEX amount Depreciation and Amortization 21.2 20.0 19.1 20.0 17.4 15.8 HD: Consolidated 14.2 14.0 Results 13.2 13.0 13.6 13.4 12.7 Group 9.9 9.0 10.0 10.0 Companies 7.0 Nippon TV Content
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: Content Strategy
Content Strategy
Slide 17: Studio Ghibli
Studio Ghibli Nippon TV acquired the shares of Studio Ghibli as of Oct 6, 2023, welcoming it into the group as a NTV HD’s consolidated subsidiary. Nippon TV is the largest shareholder with 42.3％ of the voting rights and will support Studio Ghibli’s operations. Nippon TV will respect Studio Ghi
Slide 18: Studio Ghibli
Studio Ghibli Expected synergies The share purchase enables us to provide management support to Studio Ghibli to free it up to exert unprecedented efforts into the creative process. This establishes a foundation for the spawning of new works. Nippon TV has always respected Studio Ghibli’s belief
Slide 19: Nippon TV Anime Rollout
Nippon TV Anime Rollout HD: Consolidated Results Group Companies Nippon TV Content Strategy New Business Reference 19 Materials
Slide 20: Nippon TV Anime Strategy
Nippon TV Anime Strategy Invest in and broadcast carefully-selected titles that sell at high prices overseas (mostly North America). Necessary tactics to make that a reality: ●Anime adaptations of popular hits from major publishing houses Frieren: Beyond Journey’s The Apothecary Diaries End Hall of
Slide 21: Anime Content Rollout
Anime Content Rollout ●Frieren: Beyond Journey’s End First “Friday Road Show” broadcast on Sep 29 was a 2-hour special, airing thereafter on new anime slot “Friday Anime Night” Manga Taisho 2021 Grand Prize winner finally a much-awaited anime! Follow the journey of Frieren the magician and her frien
Slide 22: Anime Content Rollout
Anime Content Rollout ●The Apothecary Diaries 24 million novels and comics issued in total, no. 1 in ranking for “Next Winner of Manga Taisho 2019 Grand Prize”, ranked for 3 years in a row on “manga that fans want adapted into anime”. Now, a much-awaited anime adaptation! Started airing on Oct 22 on
Slide 23: Global Content Rollout
Global Content Rollout ●Drama series “Rebooting” sweeps awards globally, International Content Sales captures attention and garners flood of remake offers! FY23 2Q ・A string of awards and nominations in China, Korea, FY22 2Q Films, Events, Thailand, and more. Films, Events, Others int’l business Oth
Slide 24: Programming Strategy
Programming Strategy
Slide 25: October Programming Improvements
October Programming Improvements To address the diversifying tastes of viewers, we are featuring new shows for family viewing on daytime Saturdays to bolster our timetable. We aim to capture new TV viewers by creating a new anime slot on Fridays at 11 pm that offers a slew of hit titles for nationwi
Slide 26: 100th Hakone Ekiden
100 th Hakone Ekiden 100 th Hakone Ekiden Tokyo-Hakone Round Trip College Marathon Relay Race Outbound: Jan 2, 2024 (Tue) 7:50 am start Inbound: HD: Consolidated Jan 3, 2024 (Wed) 7:50 am start Results Group Aired live nationwide on 30 of Companies Nippon TV’s network linear Nippon TV broadcast plat
Slide 27: 2023 July Cour Individual Viewer Ratings
2023 July Cour Individual Viewer Ratings July 03, 2023 – October 01, 2023 NTV EX TBS TX CX All Day ① 3.4 ① 3.4 ③ 2.6 ⑤ 1.2 ④ 2.3 6:00 to 24:00 Prime Time ① 5.2 ② 5.1 ③ 3.9 ⑤ 2.7 ④ 3.5 19:00 to 23:00 Golden Time ① 5.5 ② 5.0 ③ 4.0 ⑤ 3.1 ④ 3.7 19:00 to 22:00 HD: Consolidated Results Non-Prime Time ① 2.
Slide 28: 2023 July Cour Core Target Viewer Ratings
2023 July Cour Core Target Viewer Ratings July 03, 2023 – October 01, 2023 NTV EX TBS TX CX All Day ① 2.6 ④ 1.2 ③ 1.5 ⑤ 0.5 ② 1.7 6:00 to 24:00 Prime Time ① 4.3 ④ 2.4 ② 2.9 ⑤ 1.3 ③ 2.8 19:00 to 23:00 Golden Time ① 4.4 ④ 2.2 ② 2.9 ⑤ 1.4 ② 2.9 19:00 to 22:00 HD: Consolidated Results Non-Prime Time ① 2
Slide 29: Digital & Streaming
Digital & Streaming
Slide 30: HJ Holdings (Hulu)
HJ Holdings (Hulu) (Unit: Millions of Yen) Net Sales Operating Profit Recurring Profit Net Income FY2023 1H 16,426 497 529 527 ■On July 12 (Wed), we launched the Hulu | Disney+ Bundle Plan for subscribers to enjoy both SVOD services. This great deal is hugely popular with subscribers who can now ava
Slide 31: Streaming Business: TVer (AVOD)
Streaming Business: TVer（AVOD) TVer Highlights ■Over 700 programs from all broadcasters streamed） ■2Q all broadcasters, all content: Plays: 1.123 bil (+13% vs 1Q) Unique Browsers: 46.21 mil (+10％ vs 1Q) (All content on TVer with ads) ■Total app downloads: over 60 mil Nippon TV Initiatives Nippon TV
Slide 32: News Streaming Business
News Streaming Business Successes of the digitally-focused business expansion ■In addition to broadcasting, we are digitally focused to bolster the quality and quantity of our ≈240% growth streaming content to propel business growth. ■As page views slow down post-Covid and digital ads face a challen
Slide 33: News Streaming Business
News Streaming Business Nippon TV News NNN Launch ■In collaboration with the 30 network stations nationwide, “Nippon TV News NNN” debuted in Oct as an integrated NNN news media! It compiles into one website what is going on now all over Japan to quickly and accurately deliver reliable news articles
Slide 34: Use of AI and Advanced Imaging
Use of AI and Advanced Imaging Content Creation Using AI System Developed In-House Willing members of production teams joined forces to develop AD (pronounced ay・dee), an AI system that supports their work. It enhances content quality and work efficiency and can be used widely such as in live sports
Slide 35: Medium-Term Management Plan New Business, M&A
Medium-Term Management Plan New Business, M&A
Slide 36: 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 Life & Health- Nippon TV Related Business Content Strategy Total Investment New Business
Slide 37: JCG (esports business)
JCG (esports business) JCG Co., Ltd. became a subsidiary in Sep 2023. It produces esports events and offers a platform for online tournaments. JCG is one of Japan’s largest esports providers, with a track record of over 1,000 tournaments a year. https://jcg.co.jp/ esports is garnering attentio
Slide 38: Vook
Vook Invested in Vook Inc. in Sep 2023. It operates Vook, one of Japan’s largest websites that specializes in providing tips to video creators, and also runs Vook School, a practical school for video creators, and Vook Career, which offers information on job opportunities. As the demand for vide
Slide 39: Dream Coaching
Dream Coaching Medium-Term Management Plan: Accelerate New Business Creation ■Business overview and goals • A business that gathers many athletes and dispatches them to who they will coach. They are dispatched for school or individual coaching. • We aim to solve the two social problems of second car
Slide 40: Reference Materials
Reference Materials
Slide 41: Segment Results
Segment Results (Millions of yen) Segment Profit Net Sales (△ Loss) FY2022 1H FY2023 1H FY2022 1H FY2023 1H Change Change (Apr.-Sep.) (Apr.-Sep.) (Apr.-Sep.) (Apr.-Sep.) Media Content Business 184,682 180,654 △4,028 18,150 15,038 △3,111 Life and Health HD: Consolidated Related Business 13,032 13,231
Slide 42: FY2023 1H Spot Sales - Terrestrial Broadcasting
FY2023 1H Spot Sales ‐ Terrestrial Broadcasting (Nippon TV) FY2022 1H Share Change FY2023 1H Share Change (Apr. – Sep.) （％） (%) (Apr.- Sep.) （％） (%) 1 Service 16.0 48.7 Service 15.2 △ 11.9 18.0% 16.0% 14.0% FY2023 1H 2 Telecom/Game 12.6 △ 33.8 Telecom/Game 11.2 △ 17.1 12.0% FY2022 1H 10.0% 8.0% 3 Co
Slide 43: Movie Lineup for FY2023
Movie Lineup for FY2023 Date Title Distributor Friday ■ We're Millennials. TOHO October 13 Got a problem?: The Movie Ⓒ２０２３「ゆとりですがなにか」製作委員会 Friday December ★ The IMAGINARY TOHO HD: Consolidated 15 Results Group (C)2023 Ponoc Companies Nippon TV Friday Content Strategy ■Love You as the World Ends: The
Slide 44: Event Line up for FY2023
Event Line up for FY2023 Date Event Saturday, January 6, 2024 – Sunday, Nippon TV 70 th Anniversary January 28, 2024 Commemorative Theater Show Meijiza, Tokyo Journey to the West Frontiers of Saturday, January 27, 2024 – Sunday, Impressionism: April 7, 2024 Tokyo Metropolitan Art Museum Paintings fr
Slide 45: IP Business
IP Business ◆Nippon TV and HI-AX, LDH’s LLP, spawn this 3rd installation of a smash hit. FANTASTICS, LDH’s most prominent young group, and their iconic show “FUN!FUN!FANTASTICS３” are the talk of the town. Their linked event “BACK TO THE MEMORIES３” completed 29 shows in Osaka, Tokyo, Nagoya, and Fuku
Slide 46: 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 — FY2023 2Q Earnings Presentation on 6ix