results meeting for 3rd quarter of fy2007 · nike+ official site nikeplus.nike.com unique ntv web...

Results Meetingfor 3rd Quarter of FY2007

(April 1 – December 31, 2007)

February 8, 2008Nippon Television Network Corporation

Statements made in this presentation with respect to NTV' s current plans, strategies and beliefs as well as other statements that are not historical facts are forward-looking statements. Such forward-looking statements are based on management's assumptions and beliefs in light of the information currently available to it. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. We do not intend to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable laws.

Table of Contents 3rd Quarter Results .................................................................................P 4 Highlights of Operating Results ...............................................................P 5 Operating Results (Non- Consolidated)...................................................P 6 TV Broadcasting Sales..............................................................................P 8 Events / Content Business Sales .............................................................P 11 Production Costs.......................................................................................P 12 Forecast for FY2008 ..................................................................................P 13 Forecast for CAPEX and Depreciation.....................................................P 15 Aims of Medium-Term Management Plan ................................................P 17 Improving Viewer Ratings・Strong Non-Broadcasting Revenue............P 18 Yomiuri Giants Games...............................................................................P 21 Programming Strategy ..............................................................................P 25 Main Movie Lineup ...................................................................................P 33

3rd Quarter Results

Operating Results (Consolidated)

FY 06 Apr.-Dec FY 07 Apr.-Dec %

Net sales 254,433 255,250 0.3Operating income 21,288 18,205 △14.5Recurring profit 24,125 21,156 △12.3Net income 12,982 9,465 △27.1

Non-Consolidated FY 06 Oct.-Dec. FY 07 Oct.-Dec. %


（Unit : Millions of yen)


Operating Results(Non- Consolidated)

FY 06 Apr.-Dec FY 07 Apr.-Dec %


Non-Consolidated FY 06 Oct.-Dec. FY 07 Oct.-Dec. %




Segment Results（Unit : Millions of yen)Television

BroadcastingCultural

ActivitiesOther

Business Subtotal Elimination / Corporate

Consoli-dated

Consolidatedsubsidiary

･NTV Group HD ･NiTRo･AX-ON･NIPPON TELEVISION ART

･NTV EVENTS･NTV Music･VAP

･NTV Service･NTV Work 24･NTV Football Club･Forecast Communications

Net sales

FY07 Apr.-Dec. 194,769 56,285 11,509 262,563 △7,313 255,250

FY06 Oct.-Dec. 199,721 49,889 11,273 260,883 △6,450 254,433

In/Decrease △4,952 6,396 236 1,680 △863 817

Operating income

FY07 Apr.-Dec. 21,279 5,137 1,791 28,208 △10,002 18,205

FY06 Oct.-Dec. 25,043 5,172 1,147 31,362 △10,074 21,288

In/Decrease △3,769 △35 644 △3,154 72 △3,083

TV Broadcasting Sales(Non-consolidated)

FY 06Oct.-Dec.

FY 07Oct.-Dec. Decrease %

Total 62,803 61,705 △1,098 △1.7

Time 35,127 34,643 △484 △1.4

Spot 27,675 27,062 △613 △2.2

FY06Apr.-Dec.

FY07Apr.-Dec. Decrease %

Total 184,251 180,000 △4,251 △2.3

Time 103,098 100,859 △2,238 △2.2

Spot 81,153 79,140 △2,012 △2.5



020000

400006000080000

100000

120000140000160000

180000200000

FY06 FY07

Spot

Time

0

10000

20000

30000

40000

50000

60000

70000

FY06 FY07

Spot

Time

Spot Sales(Apr.-Dec.) FY07 Share (%) FY 06 Share (%)

1 Cosmetics/Toiletries 8.4 △ 11.7Cosmetics/

Toiletries 9.3 △ 2.5

2 Electronic equipment 8.4 △ 11.2Electronic equipment 9.2 3.7

3 Transportation/Telecommunications 7.3 0.9Automobile 8.0 △ 4.1

4 Pharmaceutical 7.2 18.5Transportation/Telecommunications 7.1 △ 1.7

5 Non-alcohol 6.7 △ 7.1Non-alcohol 7.0 13.4

6 Automobile 6.6 △ 20.3Alcohol 6.8 △ 5.6

7 Alcohol 6.5 △ 5.9Finance 6.7 △ 27.3

8 Finance 4.8 △ 29.7Pharmaceutical 5.9 △ 6.5

9 Box-office/Entertainment 4.6 14.6Sports/Hobby goods 4.3 36.6

10 Service 4.6 30.4Box-office/Entertainment 3.9 13.3

Other 34.9 6.9Other 31.8 △ 9.6

Total 100 △ 2.5Total 100.0 △ 6.6

Spot Sales(Oct.-Dec.) FY07 Share (%) FY 06 Share (%)

1 Electronic equipment 10.5 △ 9.2 Electronic equipment 11.3 △ 4.8

2 Pharmaceutical 8.7 30.3 Cosmetics/Toiletries 8.9 △ 2.7

3 Transportation/Telecommunications 8.4 2.8Automobile 8.2 △ 3.1

4 Cosmetics/Toiletries 7.7 △ 15.1Transportation/

Telecommunications 8.0 23.8

5 Automobile 5.7 △ 32.8Pharmaceutical 6.5 4.9

6 Box-office/Entertainment 5.6 60.9Finance 5.6 △ 43.1

7 Alcohol 4.8 △ 10.2Sports/Hobby goods 5.5 44.5

8 Sports/Hobby goods 4.8 △ 15.1Alcohol 5.3 △ 8.7

9 Non-alcohol 4.8 3.1Non-alcohol 4.5 13.7

10 Finance 4.8 △ 16.0Precision Apparatus/Business Equipment 4.1 △ 1.0

Other 34.3 4.6Other 32.0 △ 9.3Total 100 △ 2.2Total 100 △ 5.6

Events / Content Business Sales（ Non-consolidated ）


Business type FY07Apr.-Dec. (%) FY07

Oct.-Dec. (%)

Events Events 4,142 △9.3 1,131 △34.0

TVBS･CS ・CATV･Others

3,486 13.5 1,216 18.9

Contents

Rights 1,553 6.1 615 3.7Overseas Sales 1,052 32.3 178 △36.4

Media commerce 6,455 65.6 2,370 49.2

Publications 729 △31.9 365 △13.9Movies 8,268 26.5 4,921 67.3

Others 410 177.0 82 △32.7

Total 26,095 21.1 10,877 25.2

Production Costs (Non-consolidated)（Unit : Millions of yen)

FY 06 Oct.-Dec.

FY 07Oct.-Dec. Increase %

Production cost 27,703 28,435 732 2.6

FY06Apr.-Dec.

FY07Apr.-Dec. Increase %

Production cost 83,470 85,094 1,623 1.9

0

20000

40000

60000

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FY06 FY07

Apr.-Dec.

Forecast for FY2007Consolidated Net sales Operating

incomeRecurring

profit Net income

As of Nov. 2007 335,000 20,000 23,500 10,000

As of May 2007 335,500 18,500 21,500 11,500

Non-Consolidated Net sales Operating

incomeRecurring

profit Net income

As of Nov. 2007 286,000 13,000 15,500 6,500

As of May 2007 287,000 10,500 12,500 7,000

As of Nov. 1, 2007 1H results 2H FY

Time △2.6% △2.6% △2.6%

Spot △2.6% △1.6% △2.1%

Productioncost 1.6% 5.1% 3.3%


As of May 17,2007 1H 2H FY

Time △3.9% 2.0% △0.9%

Spot △1.2% 2.5% 0.7%

Productioncost 4.1% 9.5% 6.8%

(Preconditions)

Forecast for Business Segments

TelevisionBroadcasting

Cultural Activities

OtherBusiness Subtotal Elimination

/Corporate Consolidated

Net Sales

New Forecast 260,100 69,600 14,800 344,500 △9,500 335,000

As of May 17, 2007 265,900 62,600 14,700 343,200 △7,700 335,500

Operating Income

New Forecast 26,000 4,600 2,300 32,900 △12,900 20,000

As of May 17, 2007 26,000 4,700 2,500 33,200 △14,700 18,500

(Unit : Millions of yen)

Forecast for CAPEX and Depreciation

〈 Consolidated 〉 CAPEX Depreciation

FY 2007 4.6 (6.8) 12.6

〈 Non-consolidated 〉 CAPEX DepreciationFY 2007 3.8 (6.3) 11.9 FY 2008 7.4 (9.7) 10.5 (12.4)FY 2009 9.5 (8.9) 10.1 (12.0)FY 2010 8.7 (8.4) 10.7 (11.5)FY 2011 7.5 (6.0) 10.3 (10.4)

(Unit : Billions of yen)

(Unit : Billions of yen)

Aims of Medium-Term Management Plan

No.1 Growth in Non-Broadcasting Revenue

Improving Viewer Ratings

• Successful phased restructuring of timetablesResult: No. 2 for all day, golden, prime and non-prime times in the second half of 2007Result: No.1 for all day, prime and non-prime times; No. 2 for golden time for January 2008

• Ratings increase seen for all viewing time periods including all day, golden,prime and non-prime times

•Spot shares jump from 22.2% to 23.2% (October through December)•Obtaining new sponsors

Significant ratings increase of core targets

Strong revenue from spot advertising (year-on-year increase of 6.3% in December)

•ALWAYS—Sunset on Third Street 2: box office sales ¥4.56 billion•A Tale of Mari and Three Puppies: box office sales ¥3 billion •Flowers in the Shadows: strong box office sales of more than ¥0.7 billion two weeks into release•L change the WorLd: Simultaneous release on February 9 in Japan, Korea, Taiwan, Hong Kong and Thailand– A first in Japanese film history.Box office sales more than ¥1 billion

•Revenue: Approximately ¥6.455 billion (year-on-year increase of 65.6%)•Profit: Approximately ¥1.158 billion (year-on-year increase of 102.4%)•NitteleSeven: Midnight program “NitteleSeven To be Continued on the Internet”commenced in January

Aim at integrating media and consumption

79.1% in 2005 → 78.4 % in 2006 → 76.2 % in 2007Ratio of broadcasting revenue in sales: Medium-Term Management Plan goal of 74.2％

Strong Non-Broadcasting RevenueMovie business producing string of blockbuster hits

Steady progress toward business portfolio reform

Media commerce business continuing growth (First three quarters - April through December)

Outline of Shopping Portal Business

Shopping portalsite

ＥＣ sites

Other ＥＣ sites

Stores

Other stores

customer

payment

customer

payment

Program site, Events

e-mail bulletins

TV programsIntroducing

items on program

Uncovering recommendations

Rankings

Cooperativecommunity

viewers→consumers

one shot customer→repeat customerviewers

Developing original items for sale

Program information

From Viewers to Consumers

Yomiuri Giants Games

→ Medium to long-term strategy to acquire young fans（night games 38→34 matches）

→Penetration of BS digital receivers（32 million units）

•Expand Internet delivery

•Broadcast extended segment of Yomiuri Giants games on “1-SEG” independent broadcasting

•Increase day games（２→７games）

•Extend broadcast times for BS broadcasting

Cross-Media with Nike“RUN! With YOUR NEW FRIENDS”

A running tool called “Nike+” was created through collaboration between Nike and iPod. A cross-media promotional plan is underway where NTV digital content including NTV2 will enhance the joy of running using “Nike+” !

RUN! With YOUR NEW FRIENDSWeb site

Examples:☆Young comedian duo competition! Racing across Japan!

Blog updated almost everyday + video content (NTV2) ☆Video title contest☆Winner of the “RUNNING Competition with Fans” to appear in NTV programs such as NTV Genic and DANCING SANMA PALACE (NTV), etc.Tentative promotional period: December 12, 2007 – end of March 2008

Examples:☆Young comedian duo competition! Racing across Japan!

Blog updated almost everyday + video content (NTV2) ☆Video title contest☆Winner of the “RUNNING Competition with Fans” to appear in NTV programs such as NTV Genic and DANCING SANMA PALACE (NTV), etc.Tentative promotional period: December 12, 2007 – end of March 2008

Nike+ Official site nikeplus.nike.com

Unique NTV Web promotional plans have resulted in new advertisements!Unique NTV Web promotional plans have resulted in new advertisements!

*What’s “Nike+”？ Use it with “iPod nano” while jogging. Just set sensor into shoe and insert receiver into iPod nano. Enjoy music while running and even check (through display or earphones) running pace, distance covered and calories consumed. Data will be automatically stored at nikeplus.com where you can compete with your friends and people around the world!

Multicontact-Point Strategy& Cross-Media Advertising

“1-SEG”BS

Merchandise

DVDs

Games

Content

Internet

Events

Publishing

Movies Street/In-train monitors

VoD

Domestic sales

Overseassales

Television shopping

Format sales

CSPCWeb site

MobileWeb site

E-commerce

CATV

“1-SEG”Internet BS/CSBroadcasts

TerrestrialBroadcast

TerrestrialBroadcast

BS/CSBroadcasts Internet “1-SEG”＋＋＋

Development of cross-media advertisements to meet sponsor needs

Increase revenue !!

Advertisements Sales promotion

Multicontact-Point Strategy Cross-Media Advertising

Programming StrategyMake headway on structural reform to timetable

Analysis of Timetable

＜January 2008＞1st week #1 for All day and Non-Prime time2nd week Quadruple crown titles!!3rd week #1 for All day and Non-prime5th week Triple crown titles(#1 for All day, Prime and Golden!! )

Success of timetable reforms

Viewer Ratings

Source : video research

NTV TBS CX EX TX HUT

All day 8.5 7.5 8.9 8.2 3.8 43.6

Last year 8.3 7.8 9.1 7.7 3.8 43.0

Prime time 12.9 11.0 14.0 12.9 7.8 64.9

Last year 12.2 12.7 14.4 12.6 7.8 65.3

Golden time 12.8 11.2 14.1 12.2 8.2 66.3

Last year 11.9 13.0 14.0 11.9 8.4 66.2

Non-prime time 7.3 6.5 7.4 6.9 2.6 37.5

Last year 7.2 6.3 7.6 6.3 2.6 36.7

Second half （Oct. 1st 2007～Feb. 3rd 2008)

Viewer Ratings

Source : video research

NTV TBS CX EX TX HUT

All day 9.2 7.7 8.8 8.0 4.0 45.1

Last year 8.9 8.1 8.9 7.9 3.9 44.3

Prime time 13.4 11.4 13.2 12.5 7.7 65.4

Last year 12.5 13.0 13.7 12.8 7.6 65.7

Golden time 13.2 11.5 13.6 12.0 8.1 66.8

Last year 12.2 12.8 13.7 12.1 8.1 66.6

Non-prime time 8.0 6.6 7.5 6.8 2.9 39.2

Last year 7.9 6.7 7.5 6.5 2.8 38.2

January 2008

Solid Performance Factors

Programming Reforms April 2008Final phase of structural reform of timetableFinal phase of structural reform of timetable

Programming Topics

Sports Specials

Title Day Tokyo Marathon 2008 Feb. 17th

26th Yokohama International Women’s Ekiden

Feb. 24th

RICOH OPENING SERIES JAPAN 2008 Mar. 22nd -25th

Sports specials Sports specials

Beijing OlympicBeijing Olympic

Item Day Hour （Japanese Time）

Swimming final(Men’s 200M breaststroke semi-final etc）

Aug.13th 11:00～12:50

Judo ・qualifiers（Men’s 90Kg ,Women’s 70Kg ） Aug.13th 13:00～17:30

Track race ・Women’s marathon Aug.17th 8:30～12:30

Gymnastic ・final （Men’s parallel bars etc） Aug.19th 19:00～21:15

Softball ・semi-final / Bronze medal match Aug.20th 10:30～15:00/18:00～20:00

Main Movie Lineup for FY2007Title Release

Date Distributor

Head organizer

Tokyo Tower-Mom & Me, and sometimes

Dad-

Apr. 14,2007 SHOCHIKU 2007 box-office hit with revenue of 1.8 billion yen.

DVD released October 24th .

Headorganizer Maiko Haaaan!!! Jun. 16,

2007 TOHO Box-office hit with revenue of 2 billion yen.DVD released December 12th (Rental: Dec.7th)

Head organizer

ALWAYS -Sunset on

Third Street 2

Nov. 3,2007 TOHO

Sequel to “ALWAYS”Attracting more than 3.7 million moviegoers.Box-office hit with revenue of over 4.5 billion yen.

Head organizer

A Tale of Mari and Three Puppies

Dec. 8,2007 TOHO

TOHO’s new year movie based on real-life storybox-office hit with revenue of 3.0 billion yensince Feb. 4th

Headorganizer

Ｌchange the WorLd

Feb. 9,2008

WARNER BROS.

Spin-off of “DEATH NOTE”Preview same day in Japan, Korea, Hong-Kong,Taiwan and Thailand

Headorganizer

Sweet RainShinigami no Seido

Mar. 22,2008

WARNER BROS.

Original Story: by Koutarou IsakaStarring ：Takeshi Kaneshiro, Manami Konishi, Junko Fuji

Kagehinata ni Saku

Jan. 26,2008 TOHO

The novelistic film adaptation of Gekidan Hitoribox-office hit with revenue of 6.7 billion yen since Feb. 7th

results meeting for 3rd quarter of fy2007 · nike+ official site nikeplus.nike.com unique ntv web...

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