results meeting for 1st quarter of fy2010 · (previous forecast*) 258,000 21,100 25,500 14,700 ......

Results Meeting for 1st Quarter of FY2010(April 1 - June 30, 2010)

August 3, 2010

Nippon 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.

1st Quarter Highlights


FY2010 1st Quarter Highlights

Sales and profit increased

Spot sales increased favorably

FY2010 1st Quarter Results


FY09 Apr.‐Jun.

FY10 Apr.‐Jun.

%

Net sales 61,747 63,244 2.4%

Operating profit

5,425 7,212 32.9%

Recurring profit

6,588 10,885 65.2%

Net income 4,083 6,247 53.0%

Operating Results (Non‐consolidated)


(Unit: Millions of yen)


FY09 Apr.‐Jun.

FY10 Apr.‐Jun.

%

Net sales 69,086 72,854 5.5

Operating profit

4,719 8,146 72.6

Recurring profit

6,076 12,461 105.1

Net income 3,875 7,353 89.7

Operating Results (Consolidated)




FY09 Apr.‐Jun.

FY10 Apr.‐Jun.

In/Decrease ％

Total 50,118 52,519 2,400 4.8

Time 27,007 26,383 △624 △2.3

Spot 23,111 26,136 3,025 13.1

TV Broadcasting Revenue (Non‐consolidated)




Production Costs


(Unit : Millions of yen)

FY09 Apr.‐Jun. FY10 Apr.‐Jun. Increase %

Production costs 23,259 23,671 412 1.8

[ Notes ]

Factor contributing to increase of production costs ・broadcast of 2010 FIFA World Cup South Africa

Continuous reduction of regular program productioncosts


CAPEX and Depreciation


(Unit: Billons of yen)

FY10 Apr.‐Jun. CAPEX Depreciation

Consolidated 1.8 2.0

Non‐consolidated 1.7 1.8

FY10 Forecast CAPEX Depreciation

Consolidated 5.2 9.1

Non‐consolidated 4.5 8.2


Segment Information （Results and Forecast)

FY10 Forecast Content business

Real estate business

Other Adjustment Consolidated

Net sales 288,300 6,800 2,800 ‐4,400 293,500

Operating expenses 264,460 4,960 2,780 ‐4,400 267,800

Operating profit 23,840 1,840 20 － 25,700

2Q Forecast Content business



Net sales 141,100 3,400 1,800 ‐2,300 144,000

Operating expenses 131,780 2,540 1,780 ‐2,300 133,800

Operating profit 9,320 860 20 － 10,200

1Q Results Content business



Net sales 71,644 1,662 606 ‐1,057 72,854

Operating expenses 63,940 1,231 593 ‐1,057 64,708

Operating profit 7,703 430 13 － 8,146


FY2010 Forecast,Management,Sales and

Content Business Strategies


FY2010 Forecast



Fiscal year Net sales Operating profit Recurring profit Net income

Consolidated 293,500 25,700 31,700 18,600

(Previous forecast*) 293,500 25,100 30,900 18,000

Non‐consolidated 258,000 21,900 26,300 15,200


2nd Quarter Net sales Operating profit Recurring profit Net income

Consolidated 144,000 10,200 15,000 8,700


Non‐consolidated 126,000 8,500 12,400 7,000


*As of May 13th, 2010


FY2010 Forecast (Preconditions)


1H 2H FY

TV broadcasting revenue 2.5% △1.9% 0.2%

(Previous forecast) 1.5% △1.0% 0.2%

Time △5.0% △5.0% △5.0%

(Previous forecast) △2.4% △2.0% △2.2%

Spot 12.0% 1.8% 6.6%

(Previous forecast) 6.5% 0.2% 3.1%

Production costs 2.7% △6.1% △1.7%

(Previous forecast) 4.5% △7.8% △1.6%

Preconditions of TV broadcasting revenue and production costs

*As of May 13th, 2010


Sales Strategies（Spot）


Spot FY09 FY10

April △13.4% 15.6%

may △11.3% 15.3%

June △10.8% 8.7%

FY09 Sep.

(%)


Sales Strategies (Time)


Time FY09 FY10

April △18.8% △7.4%

May △13.3% △5.7%

June △18.4% 6.2%

（％）


Overview of Management Policy 2010


NTV Movie Lineup


Title Release date Distributor

Karigurashi no ArriettyJuly 17th

In theaters now TOHO

Head Organizer BECK September 4th SHOCHIKU

Head Organizer Kimi ni Todoke September 25th TOHO

The Incite Mill: 7‐Day Death Game October 16th WARNER BROS.

Head Organizer Mother Water October 30th SUURKIITOS


NTV Movie Lineup


Title Release date Distributor

Head Organizer GHOST November 13th PARAMOUNT

SHOCHIKU

Head Organizer GANTZ (prequel) January 2011 TOHO

Head Organizer Taiheiyou no Kiseki February 2011 TOHO


TV‐Shopping


Top 5 Bestsellers (April - June 2010)

FY09 Apr.‐Jun.

FY10 Apr.‐Jun.

Revenue 2,176 2,388

Profit 213 250


■ Solid performance factors

・Expand time slot by broadcasting special programs on network affiliate stations・Discover strong sellers ・Solid performances of regular and special programs

1st Quarter sales and profit

■ Future strategies・ Continue developing original products・ Improve customer satisfaction(i.e.: designated delivery time/date,increase payment method options)

・ Expand program slot on network affiliate stations


VAP


FY09 Apr.‐Jun. FY10 Apr.‐Jun. Increase %

Net sales 4,419 4,936 517 11.7

Operating profit △1,002 △258 744 －

Cost percentage 94.4% 82.4% －－

1st Quarter Topics

DVDs

• Substantial decrease of amortization of Minimum Guarantee (MG), continue reduction of production costs ➪Factors to increase sales and profit

• Sluggish sales of “Nakumonka” and “Manatsu no Orion” ➪Amortization of MG

• Larger‐than‐expected sales of “BANDAGE”• Increased sales of “Hotaru no Hikari 1” after broadcast of “Hotaru no Hikari 2”

Audio business

• Significant decrease of income (despite favorable DVD sales of Mr. Children )

Management

• Maintaining strong, muscular management structure (i.e.: reduce cost percentage)➪Significant reduction of operating losses ➪ Profit marked after 2nd quarter


Programming Strategies


Programming Strategies Viewer Ratings


NTV TBS CX EX TX

All day 7.9 6.6 8.3 7.3 2.8

Prime time 12.0 9.7 12.6 11.9 5.7

Goldentime 11.8 9.3 12.6 11.3 6.0

Non‐prime time 6.7 5.7 7.0 5.9 2.0

[ Notes ]

■ Intense competition to capture household ratings continues

(World Cup factor)

■ Solid ratings continue inGolden and Prime times

■ No. 2 across all four viewing time periods

03/29/2010 ‐08/01/2010


Programming Strategies Viewer Ratings (18th week of FY2010)


NTV TBS CX EX TX

All day 7.8 6.1 8.1 7.2 2.7

② ④ ① ③ ⑤

Prime time 12.4 8.7 11.9 11.3 5.6

① ④ ② ③ ⑤

Golden time 12.3 8.4 11.9 10.5 5.8

① ④ ② ③ ⑤

Non‐prime time 6.5 5.3 7.0 6.0 1.9

② ④ ① ③ ⑤

[ Notes ]

■ Double crown title for Golden and Prime times

Captured nine times this year

(six times in FY2010)*FY2009: 10 times

■#1 in Prime time viewer ratings for five consecutive weeks

■#1 in Prime time viewer ratings for the month of July

FY10 18th week ratings (07/26/2010 ‐ 08/01/2010)


Programming Strategies 1H Topics


■FY2009Simultaneous achievement of the following: implementing cost‐effective program production, increasing household ratings and improving target audiences

■April programming reforms・Success of two dramas・”Arashi ni Shiyagare” performs well

➪Provides high degree of newsworthiness

■ July programming reforms・ Two new programs: ”Korette Ari Desuka” and “Jumyo wo Nobasu Waza”・Dramas established image for time slot➪ Favorable reviews・Reinforce weak points by strengthening regular programs

■Solid performance of regular weekend programs“THE MOST USEFUL SCHOOL IN THE WORLD”“Sekai no Hate Made Itte Q”

■FY2010Steadily increase core ratings of children, teens, F1 and F2(FY2009, FY2010)

results meeting for 1st quarter of fy2010 · (previous forecast*) 258,000 21,100 25,500 14,700 ......

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