Nippon Television Holdings, Inc. · TSE:9404
Nippon Television — Q2 FY2020 Earnings Presentation
51 slides from Nippon Television's earnings presentation, Nov 10, 2020
Slide 1: Financial Results FY2020 2nd Quarter
Financial Results FY2020 2nd Quarter November 10, 2020 Nippon Television Holdings, Inc. 1
Slide 2: Forward-looking statements notice
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: FY2020 2nd Quarter Consolidated Financial Results
FY2020 2nd Quarter Consolidated Financial Results (Millions of yen) FY2019 FY2020 Change 2nd quarter 2nd quarter (%) Net Sales 209,584 174,478 △16.8 Operating Profit 17,125 9,119 △46.7 Recurring Profit 20,754 11,199 △46.0 Net Income attributable to owners 13,639 △5,656 － of the parent 3
Slide 4: Fiscal 2020 2Q Results
Fiscal 2020 2Q Results Point Lower Sales and Profits 1 Net sales are significantly lower, driven mainly by the decline in Nippon TV’s spot ad sales. TIPNESS, which operates health and fitness clubs, also saw sales declines due to COVID-19 related temporary closures. Although there were declines in o
Slide 5: Consolidated Forecast and Dividend Forecast
Consolidated Forecast and Dividend Forecast Consolidated Forecast (Millions of yen) FY2019 Actual FY2020 Forecast Change (%) Net Sales 426,599 376,000 △11.9 Operating Profit 43,111 20,000 △53.6 Recurring Profit 49,206 23,000 △53.3 Profit attributable to owners of parent 30,555 1,000 △96.7 Dividend F
Slide 6: New Growth Strategy for Nippon TV Group
New Growth Strategy for Nippon TV Group Nippon Television Holdings, Inc. November 5, 2020 6
Slide 7: New growth strategy overview: three pillars
Nippon Television Holdings, Inc. (the “Company”) has developed a new growth strategy designed to pave the way for the Nippon TV Group to make remarkable advancements in the 2020s. It provides measures for us to overcome the adverse effects of COVID-19 on our performance and aspire to greater heights
Slide 8: I. Significant growth in digital businesses
I. Significant growth in digital businesses (1) Achieve consolidated revenue worth ¥100 billion from digital business in 2023 (2) Grow video content streaming business, with Hulu at the forefront (3) Integrate broadcasting and communications to create new businesses ☞Businesses in the digital domain
Slide 9: II. Strategic investments in content and reexamination of revenue structure
II. Strategic investments in content and reexamination of revenue structure (1) Newly allocate ¥20 billion for strategic investments in content production (2) Maximize advertising revenue, which depends on the increase in content value (3) Thorough suppression of production and overhead expenses tha
Slide 10: II. Strategic investments in content (continued)
II. Strategic investments in content and reexamination of revenue structure ☞In addition to viewer ratings data, we will collect and analyze various marketing data to increase the value of our content and maximize our advertising revenue. ☞To fundamentally reexamine the structure of our terrestrial
Slide 11: III. Strengthen group businesses
III. Strengthen group businesses (1) Reexamine the operational efficiency of group companies and implement fundamental reforms (2) Implement a new evaluation system to strengthen leadership and supervision (3) Reorganize and integrate to elevate the combined capability of the group ☞The Company will
Slide 12: Details of Financial Results for the Second Quarter of Fiscal 2020
Details of Financial Results for the Second Quarter of Fiscal 2020 12
Slide 13: FY2020 2nd Quarter Consolidated Financial Results
FY2020 2nd Quarter Consolidated Financial Results (Millions of yen) FY2019 FY2020 Change 2nd quarter 2nd quarter (%) Net Sales 209,584 174,478 △16.8 Operating Profit 17,125 9,119 △46.7 Recurring Profit 20,754 11,199 △46.0 Net Income attributable to owners 13,639 △5,656 － of the parent 13
Slide 14: Net Sales YoY Change Components
213,000 Net Sales YoY Change Components 211,000 209,000 (Millions of yen) 207,000 205,000 203,000 201,000 199,000 △20,370 197,000 195,000 193,000 191,000 189,000 209,584 187,000 △2,653 ＋2,087 △10,305 185,000 183,000 181,000 179,000 △1,011 177,000 △1,154 175,000 △1,700 173,000 171,000 △35,106 174,478
Slide 15: Recurring Profit YoY Change Components
Recurring Profit YoY Change Components 21,500 (Millions of yen) Operating Items Non-Operating Items 19,500 △6,808 17,500 ＋1,248 15,500 ＋377 20,754 ＋1,483 △4,526 13,500 11,500 △1,633 ＋304 9,500 △9,555 11,199 Decrease in profit 7,500 前期period Previous 日ﾃﾚ放送事業* 日ﾃﾚ放送事業 Nippon TV 日ﾃﾚ放送外事業* Nippon Televi
Slide 16: CAPEX and Depreciation (Consolidated)
CAPEX and Depreciation (Consolidated) Depreciation and FY2020 2Q CAPEX amount amortization (Unit: Billions of yen) 5.3 8.9 (Billions of yen) CAPEX amount (Billions of yen) Depreciation and amortization 29.6 30.0 30.0 26.6 21.2 19.1 18.2 17.1 20.0 20.0 17.0 15.0 16.4 12.2 11.9 9.4 10.0 10.0 5.3 8.9 0
Slide 17: Highlights of Group Companies
Highlights of Group Companies 17
Slide 18: Nippon TV Financial Results
Nippon TV Financial Results (Millions of yen) FY2019 FY2020 Change 2nd quarter 2nd quarter (%) Net Sales 151,239 128,338 △15.1 Operating Profit 14,501 9,154 △36.9 Recurring Profit 17,337 11,446 △34.0 Net Income 11,944 14,488 21.3 18
Slide 19: Nippon TV Advertising Revenue
Nippon TV Advertising Revenue (Millions of yen) FY2019 FY2020 Change 2nd quarter 2nd quarter (%) TV advertising revenue 119,061 98,691 △17.1 Time 61,007 59,066 △3.2 Spot 58,053 39,625 △31.7 19
Slide 20: Nippon TV Production Costs
Nippon TV Production Costs (Millions of yen) FY2019 FY2020 Change 2nd quarter 2nd quarter (%) 49,686 41,952 △15.6 Production Costs (2nd Quarter) 60,000 49,733 50,186 51,520 51,758 49,686 47,498 48,442 48,359 51,348 50,000 41,952 40,000 30,000 20,000 10,000 0 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 21: Events/Content Business Sales and Costs
Events/Content Business Sales and Costs (Millions of yen) FY2019 FY2020 FY2019 FY2020 nd 2 quarter nd 2 quarter 2nd quarter 2nd quarter Sales 5,515 4,397 Sales 2,850 228 BS,CS, 2,583 282 Costs 2,828 2,220 Events Costs CATV,Other Balance 2,688 2,177 Balance 267 △54 Sales 942 870 Sales 1,205 1,091 Int
Slide 22: Financial Highlights of Other Group Companies ①
Financial Highlights of Other Group Companies ① Nippon BS Nippon CS Nippon NTVTechnical NTV (Millions of yen) NTVAX-ON Television Corp. Corp. Resources Inc. Events Inc. Art Inc. 7,245 2,272 4,347 10,079 419 2,892 Net Sales (△5.9%) (△4.4%) (△21.3%) (△4.9%) (△78.1%) (△29.8%) Operating Profit 753 423 △
Slide 23: Financial Highlights of Other Group Companies ②
Financial Highlights of Other Group Companies ② NTV IT TATSUNOKO HJ Eiho Produce Nittele (Millions of yen) Produce PRODUCTION Holdings ACM PLAY Corporation Seven Corporation Co.Ltd LLC 1,782 896 1,606 858 13,958 615 2,720 Net Sales (△14.9%) (△15.9%) (26.1%) (2.4%) (17.8%) (△62.3%) (－) Operating Prof
Slide 24: Viewer Ratings Trends, Programming Policy, and Multiplatform Rollout
Viewer Ratings Trends, Programming Policy, and Multiplatform Rollout 24
Slide 25: July 2020 Cour Viewer Ratings Key Points
July 2020 Cour Viewer Ratings Key Points Point July 2020 cour Triple Crown for individual ratings and core targets ■ Individual ratings Triple Crown for 27 consecutive cours starting from January 2014 1 ■ Core targets Triple Crown for 29 consecutive cours from July 2013 ■ Both individual and core ta
Slide 26: 2020 1H Individual Viewer Ratings
2020 1H Individual Viewer Ratings March 30, 2020 – September 27, 2020 Difference versus FY2019 1H 19年上半期との差 NTV EX TBS TX CX PUT All Day ① 4.8 ② 4.3 ③ 3.5 ⑤ 1.6 ④ 3.1 24.0 6:00 to 24:00 +0.5 +0.4 +0.4 +0.2 +0.1 +1.9 Prime Time ① 7.0 ② 6.4 ③ 5.4 ⑤ 3.5 ④ 4.6 36.9 19:00 to 23:00 +0.2 +0.4 +0.1 +0.4 ±0.
Slide 27: July Cour Ranking Based On Number of Viewers
July Cour Ranking Based On Number of Viewers Date Title Minutes Broadcasters Viewers Average (millions) Viewers (millions) 1 9/12 THE MUSIC DAY 2020 Part3 234 29 43.264 13.299 2 8/23 24-Hour Television 43 PART 5 259 31 40.001 10.393 3 8/22 24-Hour Television 43 PART 1 161 30 39.276 13.173 4 6/30 The
Slide 28: Fiscal 2020 Programming Policy
Fiscal 2020 Programming Policy ❶ Win Triple Crown by focusing on individual viewer ratings ❷ Relentless strategy that targets core viewers ❸ Entice next generation of viewers by focusing on teens to mid-30s ❹ Accelerate “Multi-Platform Strategy ❺ Enhance regular programs with a focus on rebranding ❻
Slide 29: Launched NiTele Live Streaming on 10/3
Launched “NiTele Live Streaming" on 10/3 3-month free live streaming trial for all 32 prime time programs on TVer starting from October to December, making it possible to watch terrestrial programs on smartphones and computers in real time. ★All 32 programs on live streaming trial Mon Ariyoshi Semin
Slide 30: Multi-Platform Deployment Successes
Multi-Platform Deployment Successes ❸Originals ★“From Today, It's My Turn!!” The Movie (Sunday drama, Oct cour, 2018) ◎ Launched July 17, making 5.3 billion yen in sales. ◎Terrestrial and AVOD distribution ・Aired “From Today, It's My Turn!!” on “Friday Road SHOW!” ・A special quiz show on Sunday dram
Slide 31: Multi-Platform Deployment Successes: Nizi U
Multi-Platform Deployment Successes ★“Nizi U” social phenomenon! ◎ “Nizi Project” Audition show featured on "Sukkiri" to high viewer ratings Full release on Hulu - Became a smash hit and social phenomenon! ・Along with J.Y. Park in many of our programs Catch-up viewing significantly increased ・“Nizi
Slide 32: Multi-Platform Deployment Successes: Ariyoshi's Wall
Multi-Platform Deployment Successes “Ariyoshi's Wall” ★Original commercials using characters appearing in the programs ●A life insurance company and alcoholic beverage producer are examples of major sponsors that enthusiastically joined this initiative ★Hulu rollout By streaming unreleased episodes,
Slide 33: New Programs in January Cour 2021
New Programs in January Cour 2021 ◆“SHOW Channel for 130 Million” Saturday 21:00 A new Saturday 21:00 show replacing “Arashi”. Emceed by Sho Sakurai, this show enables our 130 million-strong populace to experience what they have always wanted to. Whether it’s something you want to try, see, take a v
Slide 34: Reference Materials for Financial Results
Reference Materials for Financial Results 34
Slide 35: Segment Results
Segment Results (Millions of yen) Reportable segments Consolidated Income FY2020 2nd Life and Others Total Adjustment Statement quarter Media Real estate Amount Health Content Related Total recorded Related business Businesses Business Net Sales 163,505 8,344 5,168 177,017 3,004 180,021 △5,543 174,4
Slide 36: Overview of HJ Holdings
Overview of HJ Holdings ①Net sales grew 20% year-on-year in the second quarter of fiscal 2020 ●Due to COVID-19 related lifestyle changes, streaming business is healthy ②Collaboration with terrestrial platform and popular movies are a hit ● Exclusive streaming of "From Today, It's My Turn!!” the movi
Slide 37: Net Sales-Nippon TV
Net Sales-Nippon TV (Millions of yen) FY2019 FY2020 Change 2nd quarter 2nd quarter (%) TV advertising revenue 119,061 98,691 △17.1 Program Sales 5,649 5,662 0.2 Events/Content business sales 25,512 22,859 △10.4 Real Estate Business 1,016 1,125 10.8 Total 151,239 128,338 △15.1 37
Slide 38: TV Advertising Revenue YoY
TV Advertising Revenue YoY (Millions of yen) FY2019 FY2020 FY2019 FY2020 Time Spot （％） （％） （％） （％） April △3.2 △2.4 April △1.9 △24.7 May △2.1 1.9 May △11.2 △40.2 June △10.9 △3.1 June △5.9 △47.5 July △5.8 △3.8 July △4.5 △32.6 August 0.9 0.6 August △7.7 △26.4 September 9.2 △11.6 September △10.5 △18.5 3
Slide 39: Operating Expenses-Nippon TV
Operating Expenses-Nippon TV (Millions of yen) FY2019 FY2020 Change 2nd quarter 2nd quarter (%) Production costs 49,686 41,952 △15.6 Personnel 11,007 10,785 △2.0 Depreciation and amortization 5,931 5,465 △7.9 Events/content business costs 18,888 16,034 △15.1 Others 51,225 44,946 △12.3 Total 136,737
Slide 40: Spot Sales - Terrestrial Broadcasting (Nippon TV)
Spot Sales ‐ Terrestrial Broadcasting (Nippon TV) （％） FY2019 Share Change FY2020 Share Change nd 18.0 2 quarter (%) (%) 2nd quarter (%) (%) 16.0 1 Telecom/game 12.6 9.3 Telecom/game 17.7 △ 4.2 FY2019 2Q 14.0 FY2020 2Q 2 Cosmetics/toiletries 12.4 △15.5 Cosmetics/toiletries 11.6 △ 36.1 12.0 10.0 3 Ser
Slide 41: July Cour Individual Viewer Ratings Scorecard
July Cour Individual Viewer Ratings Scorecard Source: Video research Indivi Core C T M1 M2 M3 M3 M3 F1 F2 F3 F3 F3 dual Target M M/F M/F M/F M M M M F F F F F 50 – 13-49 4-12 13-19 20-34 35-49 50- 65- 20-34 35-49 50～ 50-64 65- 64 All Day 3 3 2 3 Prime Time 2 4 2 3 Golden Time 2 4 2 3 41
Slide 42: October 2020 Programming Strategy Themes
October 2020 Programming Strategy Themes Point A timetable that puts the needs of consumers first 1 and maximizes the satisfaction of our clients → Unyielding pursuit of a fresher and richer timetable Responding to COVID-19-triggered changes in the Point social environment and consumer behavior 2 →
Slide 43: October 2020 Programming Strategy Points: Saturday Golden Time
October 2020 Programming Strategy Points Saturday Golden Time Improvements ● Saturday 7 – 8 pm: “I Love Everyone’s Zoo” ◆ After 10 years, a new Saturday show! “Animal News” gathers real stories from Japan and the world to bring you an entirely new animal entertainment show! ◆ MC Masaki Aiba is joine
Slide 44: October 2020 Programming Strategy Points
October 2020 Programming Strategy Points Saturday Golden Time Improvements ● Saturday 8 – 9 pm: “The Most Useful School in the World” ◆ Revamp “high-quality educational variety” show for the Reiwa Era ◆ First half: focus on classes core target wants now Second half: specialize in classes focused on
Slide 45: July Cour Multi-Platform Rollouts
July Cour Multi-Platform Rollouts Point Golden Prime drama’s catch up viewing is strong! 1 "Cursed in Love” got more than 2.2 million plays → Active utilization of Nippon TV’s famous dramas, tapping into archive, effective use of assets Point “From Today, It's My Turn!!” the movie rakes in 5.3 billi
Slide 46: Multi-Platform Deployment Successes
Multi-Platform Deployment Successes ❶ Golden & prime dramas ◎ Catch-up viewing (TVer, Nittele TADA) ・ Wednesday drama: “Cursed in Love” got over 2.2 million plays ・ Saturday drama: “Detective Novice” ・Sunday drama: “Daddy is My Classmate” Average plays equal the hit “From Today, It's My Turn!!” ◎ Hu
Slide 47: Multi-Platform Deployment Successes
Multi-Platform Deployment Successes ❹ Sports ◎ Giants games → Distribution through linear, BS, and Nittel G+, Hulu, GLS, and DAZN, in addition to → Distribution of six games in TVer (opening triple games 6/19-21, 10/23-25) *last year had 4 games About 2.7 times the number of views and 2.9 times the
Slide 48: Movies Lineup for 2020
Movies Lineup for 2020 ☆ Lead organizer is Nippon TV ★=Co-organized with Nippon TV ■ = Produced by Hi-AX Date Title Distributor July 17 ☆ From Today, It's My Turn!! TOHO (Fri) The Movie August 28 ☆ Blue, painful and fragile TOHO (Fri) 48
Slide 49: Movies Lineup for 2020
Movies Lineup for 2020 ☆ Lead organizer is Nippon TV ★=Co-organized with Nippon TV ■ = Produced by Hi-AX Date Title Distributor 11/13 ☆ Legacy of doctor death WB (Fri) ― BLACK FILE― 12/11 ☆ New Interpretation of Three TOHO (Fri) Kingdoms NOTE) Publicity information postponed due to the impact of the
Slide 50: Event Lineup for 2020-2021
Event Lineup for 2020-2021 ※Do to COVID-19, events may be postponed or canceled Date Event From Friday, October 30 to Mickey THE TRUE ORIGINAL & BEYOND Monday, National Holiday, February 11, 2021 Mori Arts Center Gallery （52F, Roppongi Hills Mori Tower） From Saturday, November 21 Ancient Egypt to Th
Slide 51: Event Lineup for 2020-2021
Event Lineup for 2020-2021 ※Do to COVID-19, events may be postponed or canceled Date Event Timeless Mucha From Mucha to Manga ― Magic of the line [Matsumoto Exhibition] From Saturday, September 19, 2020 to Sunday, November 29, 2021 Matsumoto City Museum of Art <Next patrol destination> [Koriyama exh
Nippon Television Holdings — Q2 FY2020 Earnings Presentation on 6ix