Sky Perfect Jsat Corporation · TSE:9412
Sky Perfect Jsat — FY2006 Earnings Presentation
36 slides from Sky Perfect Jsat's earnings presentation, May 11, 2007
Slide 1: Financial Summary of FY2006 and Our Business Strategy
SKY Perfect JSAT Group Financial Summary of FY2006 and Our Business Strategy May 11, 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 assumpt
Slide 3: Financial Summary of FY2006
SKY Perfect JSAT ‘Corporation
Slide 4: FY2006: Summary of Consolidated Statements of Income
FY2006: Summary of Consolidated Statements of Income (Millions of Yen) Group Consolidated JSAT SKY Perfect Eliminations (Simple Consolidation) Revenues 38,770 85,422 7,240 116,951 Operating Expenses 28,171 82,996 6,735 104,431 Operating Income 10,599 2,425 505 12,519 Ordinary Income 10,607 2,761 451
Slide 5: FY2006: Breakdown of Consolidated Revenues by Service
FY2006: Breakdown of Consolidated Revenues by Service (Millions of Yen) JSAT FY2006 % of total revenues FY2005 Network-Related Services 12,523 32.3% 16,076 Broadcast and Video Distribution 25,759 66.4% 27,152 Services Other 488 1.3% 723 Total 38,770 100.0% 43,952 SKY Perfect FY2006 % of Total Revenu
Slide 6: FY2006: JSAT Consolidated Operating Results
FY2006: JSAT Consolidated Operating Results (Millions of Yen) Company JSAT International Inc. Satellite Network, Inc. Name JSAT Others*1/Elimin (Non- Sales of satellite- Reselling of ations and JSAT Major Area of Consolidated based satellite-based Equity Method Consolidated ) communications Affiliat
Slide 7: FY2006: SKY Perfect Consolidated Operating Results
FY2006: SKY Perfect Consolidated Operating Results (Millions of Yen) SKY Cable Data Network Pay Per SKY Perfect Others*1/ Company Perfect Samurai TV OptiCast Television Center View Japan, Well Think Eliminations* Name SKY Perfect Marketing Inc. Inc. Adachi Corporation Inc. Co., Ltd. 2 Co., Ltd. Corp
Slide 8: FY2006: Summary of Consolidated Balance Sheets
FY2006: Summary of Consolidated Balance Sheets (Millions of Yen) JSAT SKY Perfect Current Assets 22,433 66,414 Fixed Assets 141,036 55,228 Total Assets 163,470 121,642 Current Liabilities 15,884 31,101 Fixed Liabilities 60,772 3,201 Total Liabilities 76,656 34,302 Common Stock 53,769 50,083 Capital
Slide 9: FY2006: Summary of Consolidated Cash Flows
FY2006: Summary of Consolidated Cash Flows (Millions of Yen) JSAT SKY Perfect Net Cash From Operating Activities 20,070 8,755 Net Cash From Investing Activities (10,568) (7,977) Net Cash From Financing Activities (9,076) (1,899) Effect of Exchange Rate Changes 2 0 Net Increase (Decrease) in Cash and
Slide 10: FY2006: Number of New Subscribers and Churn Rate
FY2006: Number of New Subscribers and Churn Rate (Thousands) 250 12.0% 10.5% 11.3% 9.9% 10.0% 200 9.0% 8.8% 9.0% 8.3% 160 8.0% 8.3% 150 134 127 124 120 113 6.0% 106 94 100 4.0% 50 2.0% 0 0.0% 1Q 2Q 3Q 4Q New Individual Subscribers FY2005 New Individual Subscribers FY2006 Annualized Churn Rate FY2005
Slide 11: 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) 1,405 1,39 1,366 1,367 1,374 1,351 1,353 1,335 3,496 3,495 3,408 3,376 3,412 3,388 3,358 3,317 Basic fee Basic fee Monthly fee Monthly fee P
Slide 12: Subscriber Acquisition Cost (SAC)
Subscriber Acquisition Cost (SAC) (SKY PerfecTV! and e2 by SKY PerfecTV!) Total SAC SAC per Subscriber (Millions of Yen) (Yen) 16,889 35,817 30,091 12,928 Notes: 1. Expenses paid by SKY Perfect and SKY Perfect Marketing 2. Advertising expenses excludes public relations expenses ©SKY Perfect JSAT Cor
Slide 13: Group Business Strategy
SKY Perfect JSAT ‘Corporation
Slide 14: SKY Perfect JSAT Corporation as a Holding Company: Establishment and Functions
SKY Perfect JSAT Corporation as a Holding Company: Establishment and Functions Responsible for corporate strategy and Group management Establish nomination, remuneration, information disclosure and investment committees (Holding Company) SKY Perfect JSAT Corporation 100% 100% (Operating Company) (
Slide 15: Group Restructuring
Group Restructuring Dissolution of SKY Perfect Marketing and transfer of its businesses to SKY Perfect Stronger, more efficient subscriber acquisition through direct sales and rental channels Merge the three 110-Degree CS broadcasters Promotes transition of e2 by SKY PerfecTV! to high definition
Slide 16: FY2007: Results Forecast
FY2007: Results Forecast (Millions of Yen) SKY Perfect JSAT Consolidated SKY Perfect JSAT Non-consolidated FY2007 Forecast Interim Full-Year Interim Full-Year Revenues 60,000 125,000 900 5,500 Operating Income 2,000 5,500 (50) 3,900 Ordinary Income 2,000 5,000 (100) 3,800 Net Income 1,500 5,000 (100
Slide 17: FY2007: Content Lineup
FY2007: Content Lineup Movies Sport Over 1,000 popular Japanese and • Soccer J.League/Three major European leagues foreign movies to be broadcast every month • Baseball Japanese professional baseball/MLB (Ichiro, Matsui, Matsuzaka) Special season of epic films during • Golf PGA/LPGA and Japanese tou
Slide 18: FY2007: Advertising
FY2007: Advertising Vision Initiatives TV Commercials Promotions focusing on content Plan for monthly ‘ festivals’focusing on noteworthy content Multi-faceted approach using both sponsored time and spot commercials Promote the convenience of e2 by SKY PerfecTV! in an easy-to-understand way Newspaper
Slide 19: Enhancing Customer Service and Preventing Churn
Enhancing Customer Service and Preventing Churn Update Updateof ofSKY SKYPerfecTV! PerfecTV!Website Website Release Releaseof ofnew newgeneral generaltop toppage pageand andpromotional promotionalvideo videocontents contentsand andenhancing enhancingprogram program guidance functions, including indi
Slide 20: SKY PerfecTV! in FY2007
SKY PerfecTV! in FY2007 Attract 250,000–270,000 new subscribers with strategies including strengthening of regional promotions centered around J.League and baseball programming Strengthen regional promotions centered around J.League and professional baseball programming Continue free antenna install
Slide 21: J.League Regional Coverage
J.League Regional Coverage Thespa Kusatsu (J2) Urawa Red Diamonds (J1) J1 Omiya Ardija (J1) Consadole Sapporo (J2) Ventforet Kofu (J1) Albirex Niigata (J1) Nagoya Grampus Eight (J1) Tie-ups with clubs, Montedio Yamagata (J2) Kyoto Sanga F.C. (J2) showing all games live, content unique to SKY Vissel
Slide 22: Strengthen Face-to-Face Sales
Strengthen Face-to-Face Sales Sales Sales booths booths installed installed in in home home appliance appliance stores stores to to provide provide detailed detailed explanations explanations of of the the SKY SKY PerfecTV! PerfecTV! and and e2 e2 by by SKY SKY PerfecTV! PerfecTV! services services
Slide 23: e2 by SKY PerfecTV! in FY2007
e2 by SKY PerfecTV! in FY2007 Attract 280,000–300,000 new subscribers based on increased take-up of digital TV and promotion based on HD broadcasting Further expand take-up of compatible digital TVs etc. Strengthen promotion based on HD broadcasting in stores (Plans to make HD broadcasting available
Slide 24: Take-up of e2 by SKY PerfecTV!
Take-up of e2 by SKY PerfecTV! (Tens of thousands of units shipped) Cumulative Sales of Compatible Devices: Results and Forecasts (JEITA Results and Predictions) (Thousands) New Individual Subscribers to e2 by SKY PerfecTV! 20 18 16 FY2007 14 FY2006 12 10 8 FY2005 6 4 FY2004 2 0 4 5 6 7 8 9 10 11 12
Slide 25: SKY PerfecTV! HIKARI in FY2007
SKY PerfecTV! HIKARI in FY2007 Attract 60,000–80,000 new subscribers with strategies including full-scale promotion of sales to detached homes Swiftly achieve 5,000 new subscribers per month Maintain advantage in condominium installations and improve subscription rates (in large condominiums etc.) F
Slide 26: SKY PerfecTV! HIKARI – Condominiums
SKY PerfecTV! HIKARI –Condominiums Number of Subscribers (Condominiums) (Thousands) Steady growth in number of new installations and subscriptions. Particular increase during Japan’ s‘ house moving season’in March and April (approx. 60% share of new condominiums built in the service area). Installat
Slide 27: SKY PerfecTV! HIKARI – Detached Homes
SKY PerfecTV! HIKARI –Detached Homes Number of Subscribers (Detached Houses) Expand market in line with increased number of subscribers to NTT’s FLETS optical service. Full-fledged implementation of marketing, centering on sales promotion through NTT, home appliance stores, and door-to- door sales.
Slide 28: IP/Mobile Businesses
IP/Mobile Businesses IP Broadcasting The Company has strengthened its capital and business collaboration with On Demand TV, Inc. and I-Cast, Inc., changing the name of the On Demand TV service to “SKY PerfecTV! SELECT Channel Service”from April 1, 2007. As of April 30, 2007, the service has approxim
Slide 29: Plan for Satellite Fleet
Plan for Satellite Fleet Planned Launches FY2007 Horizons-2 Horizons-1 (74 W) (127 W) Coverage area: North America 2009 (calendar year) 36,000km Intelsat15 (IS-15) (85 W) Coverage area: Asia, JCSAT-4A JCSAT-R Indian Ocean, Middle (124 E) JCSAT-1B (Backup) (150 E) East JCSAT-2A (154 E) JCSAT-110 (110
Slide 30: Focusing on Areas Where Satellites Have an Advantage (1)
Focusing on Areas Where Satellites Have an Advantage (1) Work Workto toimprove improveearnings earningsininhitherto hithertountapped untappedareas areaswhere wheresatellites satelliteshave havean an advantage, in addition to the existing earnings base advantage, in addition to the existing earnings
Slide 31: Focus on Areas Where Satellites Have an Advantage (2)
Focus on Areas Where Satellites Have an Advantage (2) Work to bridge the “Digital Divide” Begin commercial operation of “SPACE IP”satellite broadband service Aimed at corporate customers, this service allows high-speed bidirectional internet access from anywhere in Japan Provide reasonably priced br
Slide 32: Focus on Areas Where Satellites Have an Advantage (3)
Focus on Areas Where Satellites Have an Advantage (3) Horizons HorizonsProject Project Expand ExpandNorth NorthAmerican Americansatellite satellitebusiness businessjointly jointlywith withJSAT JSATand andIntelsat Intelsat Objective: Horizons-1 Horizons-2 Horizons-2 is the second satellite project
Slide 33: Reference: Mid-Term Management Plan Targets
Reference: Mid-Term Management Plan Targets FY2011 integrated Group revenues: ¥240 billion FY2011 integrated Group ordinary income: ¥38 billion FY2011 integrated Group EBITDA: ¥50 billion Total Subscriptions at end of FY2011: 8 million*1 Service Subscriber Target*2 Subscribers at end of FY2006 SKY P
Slide 34: Reference: JSAT Quarterly Results Summary
Reference: JSAT Quarterly Results Summary Quarterly Results Summary Millions of Yen 1Q 2Q 3Q 4Q Revenues 9,109 9,434 9,366 10,859 Operating Income 3,217 3,085 2,427 1,869 Ordinary Income 3,246 3,310 2,338 1,711 Net Income 1,932 1,920 1,377 1,029 Net Cash From 8,727 4,073 5,842 1,427 Operating Activi
Slide 35: Reference: SKY Perfect Quarterly Results Summary
Reference: SKY Perfect Quarterly Results Summary Quarterly Results Summary Millions of Yen) 1Q 2Q 3Q 4Q Revenues 20,985 21,547 21,470 21,418 Operating Income 53 1,202 627 542 Ordinary Income 89 1,262 919 489 Net Income 14 1,302 1,287 3,887 EBITDA 1,377 2,724 2,191 2,903 EBITDA Margin 6.6% 12.6% 10.2
Slide 36: SKY Perfect JSAT Corporation Public Relations & Investor Relations Department
Please direct any inquiries regarding IR information to the division in charge shown below. SKY Perfect JSAT Corporation Public Relations & Investor Relations Department Statements about the SKY Perfect JSAT Group's current plans, forecasts, strategies, beliefs contained in this presentation that ar