Briefing Session on Interim Financial Results for FY 2006 Tokyo Broadcasting System, Inc. November 21, 2006

Transcription

1 Briefing Session on Interim Financial Results for FY 2006 Tokyo Broadcasting System, Inc. November 21,

2 Attendees of the Session President Hiroshi Inoue Senior Managing Director Executive Director Kenichiro Kidokoro Kazuo Hiramoto Chairperson: Vice President, Head of Investor RelationsEiichiro Inai 2

3 Interim Financial Highlights and V!-up 2010 Implementing Policies President Hiroshi Inoue 3

4 Financial Highlights of Interim Financial Results 2006 TBS Consolidated Consolidated net net sales sales recorded recorded the the highest; highest; Operating Operating income income had had drastically drastically increased increased Non-consolidated Non-consolidated operating operating income income and and ordinary ordinary income* income* marked marked increased increased profits profits for for the the first first time time in in 6 6 years years Sole Sole possession possession of of 2nd 2nd place place in in both both golden golden and and prime prime time time ratings ratings for for the the first first time time in in years years Time Time sales, sales, Programming Programming hit hit record record high high due due to to charge charge revisions, revisions, etc. etc. Net Net sales sales of of the the Head Head Office Office of of Project Project Development Development also also hit hit a a record record high high mainly mainly due due to to the the contribution contribution of of the the exhibition exhibition Nasca, Nasca, Wonder Wonder of of the the World World Production Production costs costs (program (program costs) costs) declined declined billion billion due due to to budget budget control. control. * Ordinary income is operating income plus non-operating income from interest and dividend income and other items less nonoperating expenses, such as interest expenses. Ordinary income is used as an important indicator of earning power for Japanese corporations. 4

5 Current Operating Performance Adjustment Forecast for FY TBS Consolidated Net sales Operating income Ordinary income Net income First Half Actual 155,105 11,176 11,612 6,523 (Numbers in colored cells have been adjusted) Second Half Forecast 163,695 12,624 12,688 6,677 Change from Original Plan (Beginning of FY) -7-1,576-2,012-1,523 Total 318,800 23,800 24,300 13,200 Forecast for FY2006 Change from Original Plan (Beginning of FY) -900 (Millions of yen) Y/Y 12,759 7,396 8, Rate of 4.2% 45.1% 57.9% -2.3% Non-consolidated First Half Actual Second Half Forecast Change from Original Plan (Beginning of FY) Total Forecast for FY2006 Change from Original Plan (Beginning of FY) Y/Y Rate of Net sales 135, , , , % Operating income 8,352 9, ,800 7, % Ordinary income 9,519 9,681-1,319 19,200 7, % Net income 5,771 5, , % Original Plan (Beginning of FY) Spot Sales Time Sales, Programming First Half 4.0% 6.8% Second Half 3.3% 4.2% FY % 5.5% Adjustment Plan Spot Sales Time Sales, Programming First Half Actual -0.3% 9.1% Second Half 0% 7.1% FY % 8.1% 5

6 V!-up 2010 Mid-Term Management Objectives 2006 TBS (Numbers in colored cells have been adjusted) Consolidated net sales *Broadcasting FY2006 First Half Actual (Billions of yen / Segment sales figures represent sales from outside customers.) FY2006 Adjustment Forecast Change from Original Plan (Beginning of FY) FY2008 Plan FY2010 Plan Multi Visual Ventures & Cultural Events Real Estate Consolidated operating income *Broadcasting Multi Visual Ventures & Cultural Events Real Estate Consolidated operating cash flow All-day viewer rating 7.8% 8.1% 8.6% 9.0% TBS s share of spot sales among 5 key broadcasters in Tokyo 21.5% 21.5% 23.0% 25.0% (From FY2006, two subsidiaries were transferred from Broadcasting to Multi Visual Ventures & Cultural Events.) (*: The Broadcasting business for V!-up includes other businesses of the consolidated segment.) 6

7 Primary Implemented Measures for V!-up TBS Integrated brand strategies Multi-use/Licensing/ Commercializing Integrated order oversight for production costs Newly-created: Center of Publicity (Head Office of TV Programming and Production) Newly-created: " Center of Public and Investor Relations " (Administration Division) Newly-created: Cross Media Department (Head Office of TV Programming and Production) Newly-created: Licensing Planning & Development Department (Head Office of Project Development) Newly-created: Integrated Cost Control Administrator for Studio sets & Technology (TV Programming Division) Building internal systems tailored to sponsor s needs Newly-created: Service Administrator and Team (TV Sales Division) Promoting professionalism Established: Ten Articles for Professionalism (All departments and offices) 7

8 V!-up p implementing strategies for six sectors 2006 TBS For each sector Major new implementation strategies Remark Directors in charge (1) Setting V!-up Goals Council of TBS brand strategy Gradual transition to ideal programming plans heading towards FY2010 Breaking away from the close contest and becoming No.2 within a year Mr. Ishihara (2)Enhancing Professionalism Training programs for producers (Internal promotion of professionalism) Awards for external staff (External promotion of professionalism) Fostering of professionals at TBS Mr. Kidokoro (3)Personnel Policies Improving training for administrators (Strengthening of middle management) Internal SNS / trainings for each hierarchy (Communication) Breaking barriers through vertical and horizontal multilayered communications Mr. Hiramoto (4)Business Development Strengthening movie business & developing animation business Aim at Merchandising on each program (Licensing & product development) Aiming at numerical goals with bold thinking Mr. Kodama (5)Digital Marketing Strategies New TV advertising model (Standardization & commercialization) SP advertising in Akasaka redevelopment area (Planning & implementation) Developing a system for digital business Mr. Mori (6) TBS Group Strategies New administering rules for production costs management Promoting personnel exs within the Group (Revitalization of subsidiaries) Maximizing the power of the TBS Group Mr. Zaitsu 8

9 Akasaka Redevelopment Project Updated 2006 TBS TBS Broadcasting Center BLITZ Residential Wing New BLITZ & ACT Theater Akasaka Biz Tower ACT Residential Wing & Cherry Blossom Trees-lined road 9

10 Akasaka Redevelopment Project Updated Launching Redevelopment Completion Commemorative Event Various plans to gather a million of people at the square in front of BLITZ during March of 2008 are being contested from the TBS Group 10

11 Summary of Interim Financial Results for FY2006 Executive Director Kazuo Hiramoto 11

12 TBS Group Tokyo Broadcasting System, Inc. (TBS) [Broadcasting (15 (15 companies)] TBS TBS Broadcasting Broadcasting System System Television, Television, Inc. Inc. TBS TBS Radio Radio & Communications, Communications, Inc. Inc. TBS-Vision, TBS-Vision, Inc. Inc. Tohoseisaku, Tohoseisaku, Inc. Inc. Pro Pro Cam, Cam, Inc. Inc. Akasaka Akasaka Video Video Center Center Co., Co., Ltd. Ltd. Dreamax DreamaxTelevision Inc. Inc. Akasaka Akasaka Graphics Graphics Art, Art, Inc. Inc. Art Art Communication Communication Systems Systems Inc. Inc. Sound Sound Art Art Co., Co., Ltd. Ltd. Telecom Telecom Sounds, Sounds, Inc. Inc. Japan Japan Artvideo ArtvideoService Collaborative, Collaborative, Inc. Inc. VuCast, VuCast, Inc. Inc. F&F F&F Inc. Inc. TBS TBS International, International, Inc. Inc. [Multi [Multi Visual Visual Ventures & Cultural Cultural Events Events (7 (7 companies)] Nichion, Nichion, Inc. Inc. TBS TBS Service, Service, Inc. Inc. OXYBOT, OXYBOT, Inc. Inc. TC TC Entertainment, Entertainment, Inc. Inc. Grand Grand Marché, Marché, Inc. Inc. Yokohama YokohamaBay Bay Stars StarsBaseball Club, Club, Inc. Inc. TBS TBS TriMedia, TriMedia, Inc. Inc. [Real [Real Estate Estate (5 (5 companies)] Midoriyama MidoriyamaStudio City City Inc. Inc. TBS TBS Kaikan KaikanCo., Co., Ltd. Ltd. TBS TBS Kikaku KikakuCo., Co., Ltd. Ltd. Akasaka Akasaka Heat Heat Supply Supply Co., Co., Ltd. Ltd. TBS TBS Sun Sun Work, Work, Inc. Inc. [Others [Others(3(3 companies)] TBS TBS Plaza Plaza Co., Co., Ltd. Ltd. TRC, TRC, Co., Co., Ltd. Ltd. TBS TBS Media Media Research Research Institute Institute Inc. Inc. [Companies under under the the Equity Equity Method Method (4 (4 companies)] BS-i, BS-i, Incorporated Incorporated Tomo-Digi Tomo-DigiCorporation Corporation Totsu TotsuInc. Inc. TLC TLC Co., Co., Ltd. Ltd. 12

13 Consolidated Statements of Income 2006 TBS Millions of yen) First Half Same Term Last Year Amount Y/Y Rate of (%) Consolidated/ non-consolidated ratio Amount Y/Y Rate of (%) Consolidated/ non-consolidated ratio Net sales 155,105 5, , ,15 Operating income 11,176 5, ,702-5, Ordinary income 11,612 5, ,673-5, Net income 6,523-6, ,573 4,

14 Consolidated Segment Results (Millions of yen) First Half Same Term Last Year Outside Customers Y/Y Operating income Y/Y Outside Customers Y/Y Operating income Y/Y Broadcasting 129,466 4,409 7,447 5, ,057 2,372 Multi Visual Ventures & Cultural Events 24,273 1,606 3, ,667 2,950 Real Estate 1, , Others Eliminated or company-wide Consolidated 155,105 5,906 11,176 5, , ,702-5,319 New Business Segment Broadcasting Multi Visual Ventures & Cultural Events Real Estate Others Business Television and radio broadcasting and related businesses Planning and production of events and video software, management of professional baseball club, etc. Leasing of land and buildings Operation of vehicle services, café and restaurant businesses, etc. 14

15 Consolidated Balance Sheets (Millions of yen) Sep (A) Mar (B) (A)-(B) Rate of (%) Sep (A) Mar (B) (A)-(B) Rate of (%) Current assets 139, ,165 6, Current liabilities Long-term liabilities 71, ,018 82,282 93,303-11,119 22, Total liabilities 187, ,585 11, Fixed assets 426, ,106 4, Minority interests Total shareholders equity Total net assets {1,708} 378,912 1, ,026 {49} 885 {3.0} 0.2 Total assets 566, ,271 10, Total liabilities, minority interests and shareholders equity Total liabilities and net assets 566, ,271 10, Interest-bearing liabilities balance at the end of mid-term: 72,269 million (+ 28,867 million) 15

16 Consolidated Cash Flow Results Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Net increase in cash and cash equivalents resulted from newly consolidated subsidiaries Cash and cash equivalents at end of year First Half 34,950-45,661 26,597 15,888 38, ,915 Same Term Last Year ,645 25,277 6,643 52,612 59,256 (Millions of yen) Y/Y 33,969-26,015 1,319 9,245-13, ,341 16

17 Financial Results of TBS TV/R&C 2006 TBS (Millions of yen) TBS Television First Half Actual Amount Y/Y Second Half Forecast Amount Y/Y Amount Forecast for FY2006 Y/Y Change from Original Plan (Beginning of FY) Net sales 40, , , ,500 Operating income Ordinary income Net income TBS R&C First Half Actual Amount Y/Y Second Half Forecast Amount Y/Y Amount Forecast for FY2006 Y/Y Change from Original Plan (Beginning of FY) Net sales 7, , , Operating income Ordinary income Net income

18 Financial Results of Bay Stars (Millions of yen) First Half Actual Second Half Forecast FY2006 Forecast (Beginning of FY) Amount Y/Y Amount Y/Y Amount Y/Y Net sales 3, , , Operating income Ordinary income Net income (First Half: January 1 to June 30) 18

19 Financial Results of BS-i First Half Actual Second Half Forecast Forecast for FY2006 (Millions of yen) Amount Y/Y Amount Y/Y Amount Y/Y Change from Original Plan (Beginning of FY) Net sales 2, , , ,300 Operating income -1, ,600 1, Ordinary income -1, , Net income -1, ,332-1,600 3, Cumulative loss at the end of mid-term: 36,516 million - 1,157 million 19

20 Capital Expenditures & Depreciation 2006 TBS (The figures for FY2006 and later are forecasts at present.) Consolidated First Half Y/Y FY2006 FY2007 FY2008 FY2009 FY2010 Capital investment 6,001-8, Depreciation 6, (Millions of yen) (Billions of yen) Non-consolidated First Half Y/Y FY2006 FY2007 FY2008 FY2009 FY2010 Capital investment 5,619-8, Depreciation 5,

21 Non-Consolidated onsolidated Statements of Income (Millions of yen) First Half Same Term Last Year Amount Y/Y Rate of (%) Amount Y/Y Rate of (%) Net sales 135,864 5, , Operating income 8,352 4, ,917-4, Ordinary income 9,519 4, ,667-6, Net income 5,771-6, ,442 4,

22 Non-Consolidated Revenue Breakdown (Millions of yen) First Half Same Term Last Year Amount Y/Y Rate of (%) Amount Y/Y Rate of (%) Television 120,735 5, ,546-1, (Time sales, Programming) 64,931 5, , (Spot sales) 50, ,166-1, (Others) 5, , Other businesses 15, ,628 1, (Operating) 12, ,310 1, (Real estates) 2, , Total revenues 135,864 5, ,

23 Non-Consolidated TV Revenue Increase (%) Apr. May Jun. 1Q Jul. Aug. Sep. 2Q First Half Spot sales Time sales (Numbers in colored cells have matched last year s results.) First half in Tokyo area -4.0% First half share among 5 key broadcasters 21.5 (+0.8)% Spot sales Time sales Apr. May Jun. Jul. Aug. Sep. 23

24 Segment Spot Sales Ranking (%) FY2006 First Half Increase/ Decrease Share FY2005 First Half Increase/ Decrease Share 1 Alcoholic and other beverages Alcoholic and other beverages Food products Food products Cosmetics and toiletries Cosmetics and toiletries Entertainment and hobbies Finance Drugs and medicines Automobiles and transportation Automobile and transportation Entertainment and hobbies General electronic equipment Drugs and medicines Finance General electronic equipment Communication and broadcasting Communication and broadcasting Precision equipment and office machines Retailing (Ranking is according to sales amount.) (Numbers in colored cells have matched last year s results.) 24

25 Non-Consolidated Business Revenue 2006 TBS (Millions of yen) Description First Half Y/Y Summary Div. of Project Development Culture business (Events) Business (Show enterprise) 2, Nasca exhibition, which had 350,000 visitors, contributed; the Kumakawa ballet also fared well. Fewer number of shows resulted in a decrease in sales. Video business DVD (Software) Movies and Animations (Program rights) 2,106 1, As a response to DVDs such as "Zeninshugo,sales decreased; Kurosagi is selling well. The movies Sinking of Japan and HOLiC and the animation Oh! My Goddes2 had excellent sales. Domestic programs 2, The sales of Asa Zuba! and Niji Pita! contributed. Content Business Div. Content business Overseas programs BS/CS/BB programs Sales of two-hour dramas have increased; no BB program sales in the same term last year. Communication Satellite business (TBS-ch / NB) 1, TBS-ch is enjoying strong sales and remained in the black. Mobile & Internet Mobile is enjoying strong sales; however, Internet business seems to have hit a temporary lull. Media commerce Total 12, Sales hits record high. 25

26 DVD Category Sales Top 10 (Ranking is according to sales amount.) Title Number of packages sold (Apr. Sep. 2006) Sum total from the release Remark 1 Kurosagi (D) 139, ,434 2 Byakuyakou (D) 98,447 98,447 3 Rondo (D) 93,654 93,654 4 Yaou (D) 36,500 36,500 5 Oishii Propose (D) 45,250 45,250 6 Hanayori Dango (D) 20, ,654 Released Mar Terauchi Kantaro Ikka / Vol 9-13 (D) 30,802 83,617 Released Feb Bengoshino Kuzu (D) 26,100 26,100 9 Keizoku Complete Box (D) 4,900set 4,900set 10 Kisarazu Cats Eye (D) 22, ,010 Released Jun (D=DVD) (Unit: single) ( Keizoku is an 8-volume set) 26

27 TV Program (Production) Cost First Quarter Actual Second Quarter Actual Third Quarter Fourth Quarter First Half Actual Second Half Full Year Forecast at the Beginning of FY FY FY2005 Actual (Billions of yen) Difference from Last Year (Reference) Main expenses included in the TV programming costs. * Direct costs: Program purchasing, broadcasting right, art construction, agent commission fee, etc. * Indirect costs: Technical fabrication costs, depreciation, etc

28 Viewer Ratings in the First Half and V!-Goal Programming Policy Senior Managing Director Kenichiro Kidokoro 28

29 Viewer Ratings in the First Half (%) All-day Change Golden Time Change Prime Time Change TBS (3) (2) (2) Nippon Television (2) (3) (4) Fuji Television (1) (1) (1) TV Asahi (4) (5) (3) TV Tokyo (6) (6) (6) NHK (5) (3) (5) HUT (Apr. 3 Oct : Weekly basis. Changes show year-to-year comparison.) Sole Sole possession of of 2nd 2nd place place in in both both golden golden and andprime time time ratings ratings for for the the first first time time in in years. years. 29

30 Golden Time Viewer Rating Transition (%) Apr. May Jun. Jul. Aug. Sep. TBS Nippon Television Fuji Television TV Asahi (Weekly basis) Fuji TBS Asahi NTV Current period Ave

31 Morning Slot Programs Trend (%) Mino MinoMonta MontaNo No Asa AsaZuba! (Part (Part 2) 2) Comparison with with the the previous year year Average /4/3 Monthly Ave. 05/4/4 Monthly Ave. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Average 8.0 Monthly average viewer rating for for October was was 10.2%!! Achieved Achieved No. No. 11 in in the the morning morning slot slot surpassing surpassing Nippon Nippon Television Television and and Fuji Fuji Television Television is is the the first first time time since since since since the the viewer viewer rating rating database database was was compiled. compiled. 31

32 Strong Viewer Rating for Volleyball World Championships 2006 TBS (%) Volleyball World World Championships Viewer Viewer Rating Rating Transition Viewer rating Ave. viewer rating Average viewer rating was was 17.4%! No. No. 11 in in the the golden golden time time and and No. No. 22 in in the the prime prime time time for for the the first first week week of of broadcasting. broadcasting. Achieved Achieved No. No. 11 in in the the golden golden time time and and No. No. 11 in in the the prime prime time time for for the the second second and and third third weeks weeks of of broadcasting. broadcasting. 2232

33 Sport Programs Scheduled for Broadcast 2006 TBS New Year Ekiden 2007: The 51st Zennihonjitsugyodan Ekiden 2007 Masters Golf Program Title SUZUKI Sports Special: Zennihonjitsugyodan Joshi Ekiden 2006 WBA Light Flyweight Title Match: Koki Kameda vs. Juan Landaeta 2007 World Championships in Athletics OSAKA Broadcast Date Dec. 17, 2006 (11:50-14:30) Dec. 20, 2006 (18:55-20:54) Jan. 1, 2007 (8:50-14:30) Apr. 6-9, 2007 Aug. 25-Sep. 2,

34 Top-10 Regular Programs 2006 TBS Program Title Hashida Sugako s Drama: Wataru Seken Wa Oni Bakari Zubari Iu Wayo Pittanko Kan Kan Tokyo Friendly Park II Friday Drama Kurosagi Nakai Masahiro No Kinyoubi No Sumatachi E Sanma No Super Karakuri TV Broadcaster Sunday Morning Utaban Doubutsu Kiso Tengai! (2006/4/3 2006/10/1: Weekly basis) Schedule Thu. 21:00- Tue. 21:00- Tue. 19:00- Mon. 19:00- Fri. 22:00- Fri. 21:00- Sun. 19:00- Sat. 22:00- Sun. 8:00- Thu. 20:00- Sun. 20: (%) Average Viewer Rating 34

35 Year-end end and New-year year s Special Programs 2006 TBS Variety Nai Nai Christmas! 4-hours Live Kiyoshi Konoyoru Shiawaseninare Special!! 48th Kagayaku! Nippon Record Taisho Special Drama Winter Holiday Special Drama: Happy! II Sports K-1 Premium 2006 Kakutogi Shijo Saidai no Saiten: Dynamite!! Saikyo no Otoko wa Dareda! KinnikuBattle!! Sportman No.1 Ketteisen XXXIV Culture Kaikyoku 55th Anniversary Kodai Egypt Daibouken! Ougon/Mummy/Daihakkutsu Kyukyoku no 48 MaruhiMystery Zenkaimei Special Schedule Dec. 24, 2006 (19:00-22:54) Dec. 30, 2006 (18:30-21:54) Dec. 26, 2006 (21:00-22:54) Dec. 31, 2006 (18:00-23:34) Jan. 1, 2007 (18:30-22:54) Jan. 3, 2007 (18:30-22:54) Description Ninety-nine faces the challenge of putting a first-ever 4-hour variety show on Christmas Eve. The annual Record Taisho will be upgraded and scheduled on Dec. 30 (a day earlier than usual). 2nd of the live action version of popular sport comic (1st one had a great success) Dynamite!! - a regular program on New Year s Eve: This year the program runs for 5 1/2 hours and will be full of exciting matches. Sportman a regular program on New Year s Day: Battle of Superjocks Overall host: Mino Monta; A trip to ancient egyptian ruins, plus a BBC drama; A totally new approach in reviving a magical mystery!! 35

36 New Dramas Starting in January Program Title Asakusa Fukumaru Ryokan Kira Kira Kenshui Hanayori Dango II (Returns) TBS s 55th Anniversary Kareinaru Ichizoku Schedule Mon. 20:00- Thu. 22:00- Fri. Sun. 22:00-22:00- Description Cast: Toshiyuki Nishida and Chikako Kaku Humorous and tearjerker, drama which takes place at an old established japanese-style hotel in Asakusa. Cast: Manami Konishi and Eiji Wentz A blog by a real medical intern was made into a book and a comic book, which became very popular and was the basis of this drama. Cast: Mao Inoue, Jun Matsumoto and Nanako Matsushima Sequel to the popular drama of 2005, which recorded the average viewer rating of 19.7%.The sequel also has an up-tempo story - Don t miss it! Cast: Takuya Kimura, Kyoka Suzuki, Kyoko Hasegawa and kinya Kitaoji This drama is based on the original piece by Toyoko Yamazaki with an allstar cast. 36

37 V! Goal Programming Policy Creating Creating programs programs that that target target all all generations generations in in families families Developing Developing a a generation generation of of younger younger viewers viewers while while maintaining maintaining the the support support of of middle-aged middle-aged and and senior senior viewers viewers Being Being approachable, approachable, ambitious ambitious and and innovative innovative Formulating Formulating strategies strategies to to establish establish the the TBS TBS brand brand Commitment Commitment to to focus focus on on customer customer satisfaction satisfaction Strengthening Strengthening of of collaboration collaboration with with TV TV program program production production and and content content business business (Window (Window Control) Control) 37

38 Forward-Looking Statements All the information presented in this report, including projections of the company s operating performance, is based on our judgment at the time of preparing this report. Therefore, we do not assure or guarantee the realization of the planned figures presented, which include some risk and uncertainty. Please note that actual operating performance may differ from the stated projections, depending on s in economic climate, market trends, business environment, etc. Contact for Inquiries Department of Investor Relations Tokyo Broadcasting System, Inc Akasaka, Minato-ku, Tokyo , Japan 38