Asahi Broadcasting Group Holdings Corporation · TSE:9405
Asahi Broadcasting — FY2020 Earnings Presentation
43 slides from Asahi Broadcasting's earnings presentation, May 17, 2021
Slide 1: Presentation for Fiscal 2020
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Asahi Broadcasting Group Holdings Corporation Presentation for Fiscal 2020 (For the
Slide 2: Matters to be reported
Matters to be reported Overview of Consolidated Financial Report for Fiscal 2020 ・Consolidated Results and Segment Information …P.３ ・Asahi Television Broadcasting Results …P.９ 2021–2025 Medium-term Management Strategy …P.21 "NEW HOPE” 2
Slide 3: Consolidated Results
Consolidated Results Susumu Okinaka Representative Director and President Asahi Broadcasting Group Holdings Corporation 3
Slide 4: Consolidated Results
Consolidated Results (Millions of yen) FY20/3 FY21/3 YoY % Change Net Sales 82,937 78,344 -4,592 -5.5％ Operating Expenses 79,548 75,650 -3,898 -4.9％ Cost of Sales 54,959 52,393 -2,566 -4.7％ Details -5.4％ Selling, General and Administrative Expenses 24,588 23,256 -1,332 Operating Income 3,388 2,694 -
Slide 5: Results by Segment
Results by Segment Broadcasting Net sales Housing Golf Operating income 68,645 68,550 69,605 12,958 64,602 11,474 12,545 12,372 890 960 871 783 1,083 1,060 1,101 874 72 49 28 3,475 3,116 -52 2,516 2,186 FY 18/3 19/3 20/3 21/3 FY 18/3 19/3 20/3 21/3 Net sales / Operating income: Net sales / Operating
Slide 6: FY22/3 Consolidated Results Forecasts
FY22/3 Consolidated Results Forecasts FY21/3 (actual) FY22/3 YoY % Change Net Sales 78,344 82,000 3,655 4.7% Operating Income 2,694 2,300 -394 -14.6% Ordinary Income 3,033 2,500 -533 -17.6% ー Profit Attributable to Owners of Parent -930 1,600 2,530 Net Sales Operating Income 81,484 82,302 81,986 82,
Slide 7: Financial Results Forecasts by Segment
Financial Results Forecasts by Segment Net Sales Operating Income Broadcasting and Content 67,800 1,700 Broadcasting 54,900 By business Content 12,600 Other 300 Lifestyle 14,200 900 Housing 9,800 By business Golf 900 At-home shopping 2,900 Other 600 Other -300 7
Slide 8: Dividends
Dividends Interim dividend Year-end dividend 30 28 26 25 20 20 18 18 18 16 18 17 15 12 10 9 9 10 11 12 10 9 10 7.5 5 6 4.5 5 9 9 10 10 9 4.5 4.5 6 6 5 5 0 FY 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 8
Slide 9: ABC TV Results
ABC TV Results Shinya Yamamoto Representative Director and Vice-President Asahi Broadcasting Group Holdings Corporation Representative Director and President Asahi Television Broadcasting Corporation 9
Slide 10: ABC TV Results
ABC TV Results (Millions of yen) FY20/3 FY21/3 YoY % Change Net Sales 57,605 51,288 -6,316 -11.0% Operating Expenses 56,203 49,935 -6,268 -11.2% Cost of Sales 35,539 30,855 -4,683 -13.2% Details Selling, General and Administrative Expenses 20,664 19,080 -1,584 -7.7% Operating Income 1,401 1,353 -48
Slide 11: ABC TV Revenue Performance
ABC TV Revenue Performance Point 57,041 55,596 54,320 TV Business ■TV Business ↓ 10.6％ ＊The main factor was a decrease in spot revenues. 48,537 ※ See the next page for more details. ■Event ↓ 49.2％ ＊Many events were postponed or cancelled due to COVID-19. ＊The Banksy Exhibition performed well. 1,506
Slide 12: Details of TV Business Revenue
Details of TV Business Revenue 57,041 55,596 ■Spot 54,320 ・ YoY 11.9% ↓ ・ Kansai region revenues declined significantly (89.0% of 48,537 the prior year). ※ See the following pages for more details. ■ Network (Time) ・ YoY 6.2% ↓ ・ M-1 Grand Prix, Who is a Real Celebrity?, In the Middle of Nowhere, et
Slide 13: Spot Revenue of TV Business (Quarterly performance)
Spot Revenue of TV Business (Quarterly performance) FY19/3 FY20/3 8,777 8,634 FY21/3 8,464 7,738 8,028 8,077 8,053 7,905 8,019 7,312 5,369 5,675 1Q 2Q 3Q 4Q (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Revenues declined significantly in Q1 and Q2 due to the impact of COVID-19 resulting in fewer adverti
Slide 14: Spot Revenue of TV Business (By Top Industries)
Spot Revenue of TV Business (By Top 20 Industries） FY20/3 (Full-Year) FY21/3 (Full-Year) Industry YoY* Composition rate YoY* Composition rate Foods 94.3% 10.0% 89.4% 10.1% Transportation / Leisure / Food Services / 102.9% 12.2% 70.9% 9.8% Services Information / Communications 81.3% 8.1% 90.0% 8.2% P
Slide 15: Program expenses of TV Business
Program expenses of TV Business* 1H Full-Year Point Revenues decreased by approximately ¥2.6 billion (14.6%) year on year. 17,619 17,777 ＊The main factor was the 15,175 cancellations of broadcasts and filming due to COVID-19. 8,872 9,121 ＊Other factors included unit 7,272 price control and other o
Slide 16: Television Viewer Ratings in Kansai Region (Individual)
Television Viewer Ratings in Kansai Region for March 2020-Mar 2021* [ Individual (ALL) ] All Day Golden Time Prime Time Prime 2 (6:00-24:00) (19:00-22:00) (19:00-23:00) (23:00-25:00) YTV YTV YTV YTV １ 4.5% 7.1% 6.8% 3.8% KTV NHK ABC ABC ２ 4.2% 6.4% 6.6%（±0.0） 3.2%（－0.3） ABC ABC KTV MBS / KTV ３ 4.0%（
Slide 17: FY22/3 ABC TV Results Forecasts
FY22/3 ABC TV Results Forecasts (Millions of yen) FY21/3 (actual) FY22/3 YoY % Change Net Sales 51,288 54,300 3,011 5.9% Operating Expenses 49,935 52,800 2,864 5.7% Operating Income 1,353 1,500 146 10.9% Ordinary Income 1,411 1,600 188 13.3% FY21/3 (actual) FY22/3 YoY % Change TV Program Expenses 15
Slide 18: FY22/3 ABC TV Revenue Forecasts
FY22/3 ABC TV Revenue Forecasts Changes in Item Categories FY22/3 Classified into two categories in accordance with new medium-term Broadcasting Business Revenue 49,600 management strategy policy: Broadcasting Business and Content Business Spot 30,000 ■Broadcasting Business revenue: Mainly advertisi
Slide 19: FY2020 Notable Results
FY2020 Notable Results Breakthrough in Existing Content ► In the Middle of Nowhere: Top annual average viewer ratings for regular variety programs across all stations (overall individual, Kansai). Won the 29th Hashida Awards in March 2021. ► M-1 Grand Prix: Best viewer ratings for both Kanto and Kan
Slide 20: FY2021 Initiatives
FY2021 Initiatives Accelerating Development of TV + α and Other New Challenges ▶Began broadcasting DRAGON CHEF 2021 (program to the No.1 star chef of the next generation). Young, passionate chefs come together from all over Japan. ¥10 million first prize! Broadcasting Japanese food culture to the wo
Slide 21: New Medium-Term Management Strategy
New Medium-Term Management Strategy Susumu Okinaka Representative Director and President Asahi Broadcasting Group Holdings Corporation 21
Slide 22: Review of the SUNRISE Medium-Term Management Plan
Review of the SUNRISE Medium-Term Management Plan The Group’s Growth Vision Amid the drastic changes in the broadcasting industry’s traditional business model, the Overview Asahi Broadcasting Group will grow by dynamically evolving into a comprehensive content business group and targeting “consolida
Slide 23: 2021–2025 Medium-Term Management Strategy: NEW HOPE
Asahi Broadcasting Group 2021–2025 Medium-Term Management Strategy NEW HOPE May 17, 2021 Asahi Broadcasting Group Holdings Corporation 23
Slide 24: The Group's Business Philosophy
The Group’s Business Philosophy As a dynamic and creative corporate organization, the Group continues to evolve while adapting to changing social conditions and contributes to the development of society. Why must we change? What will happen if we don't change? And what should we do to change? We wil
Slide 25: Vision of a NEW HOPE
Vision of a NEW HOPE Creating and Delivering New Happiness The world underwent major changes in the year 2020. New lifestyles, new communications, new values. The products we create and how we deliver them continue to evolve. As a comprehensive content business group, we strive for the greater devel
Slide 26: Priority Targets
Priority Targets 1 Strengthen and diversify human resources throughout the group Leverage the power of broadcasting, and strengthen and 2 deepen group collaboration Build a data utilization system and pursue the use of 3 digital technologies Create businesses that contribute to regional revitalizati
Slide 27: Strategy by Business
Strategy by Business To grow as a comprehensive content business group, the company has divided its business domains into three new categories: Broadcasting Business Content Business Lifestyle Business (Housing, golf, at-home shopping, etc.) Improve and leverage Strengthen capabilities in Plan exper
Slide 28: Priority Targets FY2021 (forecast) and By FY2025
Priority Targets FY2021（forecast） By FY2025 (Billions of Yen) (Billions of Yen) Lifestyle Business Lifestyle Business 14.2 19.0 Content Business 12.6 Broadcasting Broadcasting Content Business Business Business 25.0 56.0 55.2 Consolidated Sales ¥82.0 billion Consolidated Sales ¥100 billion Operating
Slide 29: Priority Targets: Three-Year Financial Plan
Priority Targets Achieve consolidated sales of 100 billion yen by FY2025 Three-Year Financial Plan (Millions of Yen) FY2021 FY2022 FY2023 Operating Operating Operating Net Sales Net Sales Net Sales Income Income Income Consolidated Group 82,000 2,300 88,000 3,000 92,000 4,500 FY2021 FY2022 FY2023 ▼
Slide 30: Strategy by Business: Broadcasting Business
Strategy by Business： Broadcasting Business 1．Increase broadcast advertising revenues Produce highly-satisfying programs that take the user's viewpoint, clearly understanding consumer needs Enhance viewing data and establish analysis methods in order to reach core targets Build strong timetabl
Slide 31: Strategy by Business: Content Business
Strategy by Business： Content Business 1. Improve planning and production capabilities to respond to a variety of needs and devices Develop content usable in a variety of media, both in Japan and overseas Strengthen non-video content, e.g. event planning and management 2. Maximize the value of c
Slide 32: Content Business FY2021 (forecast) and By FY2025
Strategy by Business： Content Business FY2021（forecast） By FY2025 (Billions of Yen) (Billions of Yen) Lifestyle Business 14.2 Lifestyle Business 19.0 Broadcasting Broadcasting Business Business 55.2 56.0 Consolidated Sales ¥82.0 billion Consolidated Sales ¥100 billion Operating Income ¥2.3 billion O
Slide 33: Strategy by Business: Content Business
Strategy by Business： Content Business Animation Expand existing animation for children and movie investments Expand terrestrial late-night animation broadcast frame and development Net sales by FY2025 Strengthen the value chain by establishing CG +¥2.5~3.0 billion production studios and trans
Slide 34: Strategy by Business: Lifestyle Business
Strategy by Business： Lifestyle Business 1. Strengthen existing businesses Strengthen planning capabilities and improve customer satisfaction and experience value Reform business models by utilizing data and other parts of the digital domain 2. Aspire to new businesses that solve social issues
Slide 35: Lifestyle Business FY2021 (forecast) and By FY2025
Strategy by Business： Lifestyle Business FY2021（forecast） By FY2025 (Billions of Yen) (Billions of Yen) Content Business 12.6 Broadcasting Broadcasting Business Content Business Business 55.2 25.0 56.0 Consolidated Sales ¥82.0 billion Consolidated Sales ¥100 billion Operating Income ¥2.3 billion Ope
Slide 36: Strategy by Business: Lifestyle Business
Strategy by Business： Lifestyle Business At-home Shopping Established ONE DAY DESIGN Inc. in January 2021. Business Began broadcasts of Honobono Shigeru in April Strengthening E-Commerce 2021 (regional revitalization and TV shopping Expand terrestrial broadcast program). frame, etc. ABC Media
Slide 37: Growth Investment Strategy
Growth Investment Strategy Drive group growth by making investments in M&A and other channels as a means to acquire functions and resources in line with the strategy of each of the Broadcasting, Content, and Lifestyle Businesses Content investments to acquire strong intellectual properties Inves
Slide 38: Financial Policies
Financial Policies Financial Strategy Procure funds optimally with consideration of capital costs and the market environment while maintaining a sound capital adequacy ratio. Actively make optimal investments for future sustainable growth and aim to increase overall corporate value. Dividend Pol
Slide 39: Reference Materials
39 Reference Materials ABC
Slide 40: FY21/3 Results Broadcasting Business (Non-ABC TV)
FY21/3 Results Broadcasting Business (Non-ABC TV) ABC Radio ABC Frontier HD（Content-related） MASH Net Sales Operating Income 2,837 2,637 2,520 2,505 2,209 2,237 2,119 1,668 1,488 791 422 525 68 82 134 16 -165 FY18/3 19/3 20/3 21/3 FY18/3 19/3 20/3 21/3 FY18/3 19/3 20/3 21/3 Lower revenue and profits
Slide 41: Television Viewer Ratings in Kansai Region (Household)
Television Viewer Ratings in Kansai Region for March 2020-Mar 2021* [Household] All Day Golden Time Prime Time Prime 2 (6:00-24:00) (19:00-22:00) (19:00-23:00) (23:00-25:00) YTV NHK ABC YTV １ 8.0% 11.3% 11.4%（-0.1） 7.1% KTV YTV YTV ABC ２ 7.7% 11.2% 10.9% 6.0%（－0.5） ABC ABC KTV MBS ３ 7.5%（＋0.2） 10.0%
Slide 42: ANN's TV Network
ANN’s TV Network Asahi Television Broadcasting Corporation 21.59 million people 10.18 million households TV Asahi Corporation 43.61 million people 20.92 million households 42
Slide 43: Disclaimer
Disclaimer The financial results in the period in this presentation are determined on the information available at the moment and are based on the assumption that the Japanese economy will gradually recover. As a result, the information in this presentation contains inherent risks and uncertainties.
Asahi Broadcasting Group Holdings — FY2020 Earnings Presentation on 6ix