Results Presentation - The First Quarter of the Year Ending March 31, 2011 - August 5, 2010 Tokyo Broadcasting System Holdings, Inc.
Tokyo Broadcasting System Holdings, Inc. Consolidated company in the broadcasting, multi visual ventures and cultural events businesses and real estate business (1) TOKYO BROADCASTING SYSTEM TELEVISION, INC. Consolidated companies in the broadcasting business (13) TBS Radio & Communications, Inc. TBS-VISION, Inc. FF TOHO Inc. ProCam, Inc. Akasaka Video Center Co., Ltd. DREAMAX TELEVISION, INC. AKASAKA GRAPHICS ART, INC. Art Communication System, Inc. TELECOM SOUND, Inc. JASC (Japan Artvideo Service Collaborative, Inc.) Vucast, Inc. TBS MEDIA RESEARCH INSTITUTE Inc. TBS International, Inc. Consolidated companies in the multi visual ventures and cultural events businesses (13) NICHION, INC. TBS Service, Inc. OXYBOT, Inc. TC Entertainment Incorporated Grand Marche, Inc. YOKOHAMA BAYSTARS BASEBALL CLUB, INC. TBS TriMedia, Inc. StylingLife Holdings Inc. Five other companies Consolidated companies in the real estate business (4) Midoriyama Studio City, Inc. TBS Kikaku Co., Ltd. Akasaka Heat Supply, Co., Ltd. TBS Sunwork, Inc. Equity method affiliates (5) BS-TBS, INC. Tomo-Digi Corporation Totsu Inc. TLC Co., Ltd. RG MARKETING CO., LTD. 1
Consolidated Amount Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) (%) Amount (%) Net sales 83,212-3,978-4.6 87,190 8,559 10.9 Operating income 1,171-1,391-54.3 2,562-2,069-44.7 Ordinary income 2,119-1,217-36.5 3,337-2,980-47.2 Net income -2,562-4,393 1,830-1,834-50.1 TBS TV Q1 (Apr. to Jun. 2010) Amount Net sales 52,518-4,479 Operating income 1,389-1,534 Ordinary income 2,290-604 Net income 1,707 82 TBS HD Q1 (Apr. to Jun. 2010) Amount Net sales 4,861 404 Operating income 965 394 Ordinary income 1,716-1,142 Net income -2,660-5,141 2
Consolidated H1 H2 Full year Total Net sales 164,500 178,000 342,500-8,762 Operating income -200 9,100 8,900 5,556 Ordinary income 300 8,800 9,100 5,197 Net income -5,100 5,700 600 2,913 3
FY2011 forecasts FY2011 forecasts (announced on May 13) (Unit: 100 million yen) FY2010 results Consolidated net sales 3,425 3,490 3,512 Broadcasting 1,949 2,000 2,012 Multi Visual Ventures & Cultural Events 1,310 1,326 1,336 Real Estate 166 164 163 Consolidated operating income 89 89 33 Broadcasting -34-35 -103 Multi Visual Ventures & Cultural Events Consolidated cash flows from operating activities Consolidated operating income to net sales 48 52 60 Real Estate 75 72 75 240 240 186 2.6% 2.6% 1.0% 4
FY2011 forecasts H1 H2 Full year Net sales 101,500 110,000 211,500 Operating income -1,800 4,900 3,100 Ordinary income -1,000 5,200 4,200 Net income -1,400 4,200 2,800 Forecast TV earnings H1 H2 Full year (Unit: %) Spot +6.1 +6.1 +11.9 +8.8 +9.1 +7.5 Time -14.0-15.9 +3.8-1.9-5.6-9.3 5
External sales Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) Operating income External sales Operating income Broadcasting 49,752-2,821 808 539 52,574-8,844 268-1,718 Multi Visual Ventures & Cultural Events 29,335-1,176-1,541-1,856 30,512 17,272 315-420 Real Estate 4,124 20 1,907-59 4,103 150 1,967 80 Others 0 0 0-11 0-18 11-11 Elimination 83,212-3,978 1,171-1,391 87,190 8,559 2,562-2,069 Factors behind changes Broadcasting Multi Visual Ventures & Cultural Events External sales TBS TV (-25.8) TBS Radio & Communications (-2.0) TBS TV (-15.0) TC Entertainment (-3.1) NICHION (+1.5) StylingLife (-2.2) Service (-0.8) Grand Marche (+5.7) Operating income TBS TV (+4.4) TBS Radio & Communications (+0.7) (Unit: 100 million yen) TBS TV (-16.3) StylingLife (-0.9) TC Entertainment (-1.1) Real Estate 6
As of Jun. 2010 As of Mar. 2010 Change As of Jun. 2010 As of Mar. 2010 Change Current assets 171,139 174,141-3,002 Current liabilities 127,547 114,469 13,077 Long-term liabilities 131,204 156,136-24,931 Total liabilities 258,752 270,606-11,854 Fixed assets 428,914 453,541-24,626 Total net assets 341,301 357,076-15,775 Shareholders equity 331,322 346,252-14,929 Minority interests 9,978 10,823-844 Total assets 600,053 627,683-27,629 Total liabilities and net assets 600,053 627,683-27,629 Interest-bearing liabilities at the end of the first quarter: 164,001 million yen (up 39 million yen from the end of the previous year) 7
Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) Cash flows from operating activities 6,936 2,181 4,755 Cash flows from investing activities -2,539-3,952 1,412 Cash flows from financing activities -482 653-1,136 Net increase (decrease) in cash and cash equivalents 3,894-1,129 5,023 Cash and cash equivalents at beginning of term 52,249 48,571 3,678 Cash and cash equivalents at end of term 56,143 47,442 8,701 8
TBS R&C Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) Amount Amount Net sales 2,748-240 2,988-508 Operating income 126 74 52 95 Ordinary income 128 74 54 95 Net income 6-48 53 101 Recorded the highest ratings for 54 consecutive periods from August 2001 to June this year. 9
Grand Marche Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) Amount Amount Net sales 3,416 567 2,848 38 Operating income 131-2 133-110 Ordinary income 133-2 135-111 Net income 81 2 79-66 TC Entertainment Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) Amount Amount Net sales 597-369 966 260 Operating income 50-109 158 51 Ordinary income 50-109 158 51 Net income 33-60 93 30 10
YOKOHAMA BAYSTARS BASEBALL CLUB Q1 (Jan. to Mar. 2010) Q1 (Jan. to Mar. 2009) Amount Amount Net sales 829 11 818 71 Operating income -848-182 -665 59 Ordinary income -846-182 -664 65 Net income -846-182 -664 65 StylingLife Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) Amount Amount Net sales 16,765-216 16,981 Operating income -799-87 -713 Ordinary income -839-104 -735 Net income -833-117 -716 11
BS TBS Q1 (Apr. to Jun. 2010) Q1 (Apr. to Jun. 2009) Amount Amount Net sales 2,131 457 1,674-344 Operating income 153 124 29-75 Ordinary income 155 124 31-75 Net income 155 124 30-75 Cumulative losses at the end of the first quarter: 35,191 million yen (improved 155 million yen from the end of the previous year) 12
Consolidated Q1 (Apr. to Jun. 2010) Capital expenditures 1,230-204 Depreciation 3,682-633 TBS-HD Q1 (Apr. to Jun. 2010) Capital expenditures 76 36 Depreciation 881-39 TBS TV Q1 (Apr. to Jun. 2010) Capital expenditures 774-396 Depreciation 2,337-574 Breakdown of consolidated capital expenditures Including 90 million yen in digital terrestrial broadcasting, 40 million yen in facilities for HD conversion, 720 million yen in other investments in general and 380 million yen in subsidiaries excluding TBS TV and TBS-HD 13
Q1 (Apr. to Jun. 2010) Amount Amount Television 46,087-2,547 (Time advertising and program production) 22,003-3,015 (Spot advertising) 20,955 567 (Others) 2,253-3 (Program sales in Japan) 875-96 Operations 5,709-1,937 Real estate 722 5 Total income 52,518-4,479 14
110 100 (Unit: %) 100.4 108.8 100.1 Spot Time 98.3 90 85.9 80.6 80 Spot in Q1 average April May June Tokyo area 107.6 111.6 101.5 106.7 Q1 (Apr. - Jun. 2010) Q1 (Apr. - Jun. 2009) Time 87.9 80.4 Spot 102.8 86.3 TBS share among five key broadcasters 19.8 20.6 15
1 Q1 (Apr. to Jun. 2010) Alcoholic and other beverages Growth rate -20.0 14.4 Share Q1 (Apr. to Jun. 2009) Alcoholic and other beverages Growth rate Share -13.4 15.9 2 Foods 1.4 14.3 Foods -5.6 13.6 3 Cosmetics and toiletry -19.4 9.7 Cosmetics and toiletry -13.2 10.8 4 Pharmaceuticals -11.1 8.1 Entertainment and hobbies -13.8 9.5 5 Entertainment and hobbies -34.5 7.0 Pharmaceuticals -8.1 8.6 6 Automobiles and transportation equipment 7 General electronics -21.7 6.0 8 Telecommunications and broadcasting -8.3 6.9 General electronics -13.4 6.8-9.6 5.4 Automobiles and transportation equipment Telecommunications and broadcasting -28.4 5.5-28.2 4.4 9 Financial 17.2 4.5 Financial -2.8 3.8 10 Precision instruments and office machines (Ranked in order of sales proceeds) (Unit: %) -1.9 4.0 Food service -3.7 3.4 16
All day Golden time Prime time TBS (4) 6.7 (5) 9.6 (5) 9.9 NTV (2) 7.8 (3) 11.6 (3) 11.7 Fuji TV (1) 8.3 (1) 12.6 (1) 12.7 TV Asahi (3) 7.3 (3) 11.6 (2) 12.2 TV Tokyo (6) 2.8 (6) 6.0 (6) 5.7 NHK (5) 6.6 (2) 12.0 (4) 10.7 HUT 41.4 63.5 62.7 (Unit: %) (Ratings for March 29, 2010 to June 27, 2010, on a weekly basis) 17
FY2011 FY2010 Results Q1 24,226 25,995-1,768 (Direct expenses) (Indirect expenses) (18,813) (5,413) (20,551) (5,444) Q2 27,590 H1 53,585 Q3 25,766 Q4 25,719 H2 51,485 FY2011 forecasts 96,400 105,070-8,670 (Forecasts announced on May 13) (98,400) Major expenses included in TV program cost: Direct expenses: program purchasing expenses, fees for broadcasting rights, fine arts production expenses, technical production expenses Indirect expenses: absorbed cost including depreciation and personnel cost for employees 18
Events Planning bureau Content business bureau Contents Q1 y/y change Cultural business (events) 533 30 Show business 924 285 Multi visual business Movie business Contents sales business DVDs 657-461 Remarks for the full fiscal year Increased from the previous fiscal year, thanks to the transfer of Musee Du Petit Prince De Saint from the Show business, in addition to the huge success of the Great Mammal Exhibition. Substantially increased as a decline associated with the transfer of Musee Du Petit Prince De Saint to the Cultural business (events) was more than offset by the increased number of performances, such as Dream Girls, Chicago, and Theater Okuribito. Declined significantly due to the lack of major hits like Ryuseino Kizuna and Rescue in the previous fiscal year, in addition to falling DVD prices. Animations 462 128 Increased sharply, attributable to the major hit of the DVD Keion!. Movies 252-1,965 Program sales abroad Other program sales 300-4 - 39 12 - Declined substantially, reflecting the lack of hits, although the number of movies was three, the same as in the previous fiscal year. Pay-TV business 1,691 205 The number of subscribers increased steadily. Licensing business 360-124 Digital business 486-44 - Total 5,709-1,937 - Goods-related sales declined from the previous fiscal year as movies performed poorly. 19
Forward-looking statements on future results and all other content in this document are based on the Company s judgment at the time of publication. This document does not assure or guarantee that the stated numerical plans and measures will be achieved. Risks and uncertainties are inherent in this document. Please note that future results may differ materially from statements herein, depending on changes in factors, including economic circumstances, market trends and business conditions. For inquiries: IR Promotion Department, Group Management Planning Division Tokyo Broadcasting System Holdings, Inc. 5-3-6 Akasaka, Minato-ku, Tokyo 107-8006 Telephone: 03-3746-1111 (switchboard) http://www.tbsholdings.co.jp/ir/en/ 20