Results Meeting for 2 Quarter of FY2009 (April 1 ...
Transcript of Results Meeting for 2 Quarter of FY2009 (April 1 ...
Results Meetingfor 2nd Quarter of FY2009
(April 1 – September 30, 2009)
November 10, 2009Nippon 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 Contents01・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Operating Results(Consolidated)02 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・TV Broadcasting Revenue (Non-Consolidated)03 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Events/Content Business Sales
(Non-Consolidated)04 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Production Costs(Non-consolidated)05 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Forecast for FY200906 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Forecast for Business Segments07 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・CAPEX and Depreciation09・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Results of April 2009 Program Changes10 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Programming Strategies
for Latter Half of 200912 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Program Production Budget13・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Revival of Spot Sales15 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Development of Original Sales Method17 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Current Status of VAP18 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Solid Performance of Content Business:
Movies19 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Solid Performance of Content Business:
TV-shopping Business
2nd Quarter Results
Consolidated FY08 Jul.-Sep. FY09 Jul.-Sep (%)
Net sales 84,733 75,226 △11.2%Operating profit △1,588 3,481 -
Recurring profit △712 4,258 -
Net income △2,726 2,593 -
Consolidated FY08 Apr.-Sep. FY09 Apr.-Sep. (%)
Net sales 164,986 144,313 △12.5%Operating profit 1,286 8,200 537.5%Recurring profit 3,292 10,335 213.9%Net income △1,220 6,469 ―
*Loss reported on “△”numbers. 1
(Unit: Millions of yen)
(Unit: Millions of yen)
FY08 Apr.-Sep.
FY09 Apr.-Sep. Decrease %
Total 113,837 98,989 △14,848 △13.0
Time 66,745 55,313 △11,431 △17.1
Spot 47,092 43,676 △3,416 △7.3
FY08 Jul.-Sep.
FY09 Jul.-Sep Decrease %
Total 55,157 48,870 △6,286 △11.4
Time 34,289 28,306 △5,983 △17.5
Spot 20,867 20,564 △302 △1.5
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(Unit: Millions of yen)
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Business Type FY09FY09Apr.Apr.--Sep.Sep. (%)(%) FY09 Jul.-
Sep. (%)
Events Events 4,4014,401 11.211.2 2,825 4.9
TV BS・CS・CATV・Others 2,8572,857 10.110.1 1,471 13.4
Content
Rights 863863 △△3.93.9 488 17.0OverseasSales 349349 △△48.848.8 158 △53.5
Media Commerce 5,1995,199 48.648.6 3,023 44.0
Publications 298298 △△26.826.8 159 △28.7
Movies 9,0729,072 35.735.7 6,954 47.5
Others 118118 △△26.726.7 54 △15.6
Total 23,15723,157 22.622.6 15,132 27.73
(Unit: Millions of yen)
FY08 Apr.-Sep.
FY09 Apr.-Sep. Decrease %
Production Costs 61,173 47,182 △13,990 △22.9
FY08 Jul.-Sep.
FY09 Jul.-Sep Decrease %
Production Costs 30,532 23,922 △6,609 △21.6
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(Unit: Millions of yen)
(Unit: Millions of yen)
Fiscal year Net Sales Operating Income
Recurring Profit Net Income
Consolidated 291,900 15,000 18,500 11,300Non-consolidated 254,000 15,500 18,300 9,900
Preconditions 1H 2H
Time △15.7% △16.4%
(Previous forecast) △10.0% △13.5%
Spot △3.9% △5.6%
(Previous forecast) △8.0% △10.5%
Production Costs △5.2 % △14.8%
(Previous forecast) △5.7% △12.7%
Dividends InterimPeriod
End of Period Yearly
FY09(Forecast) 90 90 180
FY08 90 90 180
(Unit : Yen)
*As of Nov. 5th
Dividend Policy
Basic Dividend Payout Ratio: 50% (Non-consolidated)Floor annual dividend per share:180 yen
(Reference)Net income per share:399.74 yen
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(Unit: Millions of yen)
(Ref. ) Managerial accounting basis
Fiscal Year
Television Broadcasting
Cultural Activities Other Elimination/
Corporate Consolidated
Net salesNew forecast 220,300 67,300 12,400 △8,100 291,900
As of May 219,100 66,200 15,000 △8,400 291,900
Operating income
New forecast 23,900 1,700 1,500 △12,100 15,000
As of May 18,100 2,800 2,600 △13,000 10,500
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(Unit: Millions of yen)
FY09 Apr.-Sep. CAPEX Depreciation
Consolidated 1.6 4.7
Non-Consolidated 1.4 4.2
Forecast for FY09 CAPEX Depreciation
Consolidated 5.1 9.8Non-Consolidated 4.5 8.8
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(Unit: Billions of yen)
(Unit: Billions of yen)
Programming Strategiesand
Production Costs
NTV TBS CX EX TX HUT
All Day 8.4 6.9 8.5 7.9 3.3 43.0Last year 8.3 7.4 8.5 7.7 3.6 43.4
Prime time 12.6 10.1 13.3 12.1 6.8 63.5
Last year 12.3 11.2 13.3 11.8 7.6 64.6
Golden time 12.4 10.0 13.4 11.4 7.2 64.8Last year 12.3 11.3 13.4 11.1 8.0 66.1
Non-prime time 7.2 6.0 7.2 6.7 2.2 37.1
Last year 7.1 6.3 7.2 6.6 2.5 37.4
Yearly 2009 (12/29/2008-11/8/2009)
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Results of October 2009 Program ChangesFavorable start to new Wednesday and Saturday drama series“GYNE”(Up 5.1 pts from previous series in same time slot)“Samurai High School” (Up 1.8 pts from previous series)
Both series successfully attracting main target viewers: female audience (Wed drama);family audience (Sat drama) tvv5
Good Ratings Continue on Morning Programs
“SUKKIRI!!” Marks record for best monthly rating (8.8%) in Augustand takes No. 1 position, overtaking competing program
“NEWS ZERO” Average weekly rating in first half 2009 = 9.0% (Up 1.5 pts from previous year) Mon through Thurs
New Programs Started in April 2009 Show Growth“SUPER SURPRISE” Ratings on Tuesday are increasing to over 10%.
Ratings on other weekdays are also increasing by reinforcing topics introduced in programs. Receiving high marks from advertisers for introduction of live-CMs, etc.
“GYNE”
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Plans to Broadcast Many Large-scale Sporting EventsNov. 2009 “World Grand Champions Cup Volleyball 2009”Dec.2009 “TOYOTA presents FIFA Club World Champions Cup”Jan. 2010 “Hakone Ekiden”Feb. 2010 “Tokyo Marathon”Feb. 2009 “Vancouver 2010 XXI Olympic Winter Games”
Large-scale sporting events like these effectively unify our employees, which propel us to garnermore viewers from our non-sport, regular programs.
Basic Programming Concepts for End of Year and New Year’sIn addition to expanding current programs, we will broadcast annual special (single-episode) programs and new programs to compete with other leading stations.➪For example, successful hit movie “A Tale of Mari and Three Puppies” will be broadcast for the first time on terrestrial TV
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Strengthening Regular Programs➪ by reinforcing topics introduced in each program
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Efficient use of production budget Whether regular or special, production costs of programs were successful decreased without lowering quality.
Planning aggressive, large-scale special programming for the upcoming New Year and for the spring term.
Address advertisers’ needs
Setting up time slot for single advertiser or publicity programs for sponsors’campaigns during afternoons on Saturday and Sunday, and late nights.➪Listening to advertisers’ needs
Implementing live-CMs during “SUPER SURPRISE!!”➪Flexible method of contributing to increase of advertising revenue
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FY2009 2QFY2009 2QRevival of Spot Sales andRevival of Spot Sales andUpcoming Sales StrategyUpcoming Sales Strategy
Month Yoy
Apr. △ 13.4%
May △ 11.3%
Jun. △ 10.8%
Jul. △ 5.2%
Aug. △ 2.2%
Sep. 3.6%
Apr.‐Sep. △ 7.3%Earliest bounce back from falling revenue among key commercial stations in TokyoClosing gap between NTV and top-ranked station while distancing NTV from third-ranked stationNTV’s revival trend continues even in Oct. and Nov. 2009.
NTV yoy Area yoy NTV’s share
△ 11.9% △ 12.7% 23.4%
△ 1.4% △ 8.0% 24.4%
Comparison Chart of Spot Sales Revenue (quarterly basis) Monthly Spot Revenue Ratio
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Improvement of Program Timetable
“News Today”➪ ”NEWS ZERO”, “Johou-Tsuu” ➪”SUKKIRI!!, etc.
Programming modifications to timetable and renewal of programs since April led to remarkable results
Gain more viewers that meet needs of sponsors/viewers the advertisers wish to target (core target audience: ages 13-49)
Positive feedback from advertisers and advertising agencies➪leads to increase of spot CMs
Continuous Efforts by Sales Division
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NTV Domestic Sales DivisionActively seeking out new advertisers and new productsthat have never advertised on TV in the past, and to propose that they spend their non-advertisement budget.
Reinforcing Proposal-type Sales CPP(Cross Program Promotion) ProjectProposal-type CMs (project-oriented original CMs)
CPP:Planning the period of a TV commercial airing, targeting the audience and the method of appealing to the audience while keeping in mind the client’s purpose, such as sales promotion of the product.NTV Domestic Sales Division would plan the airing a product-related program and an original program tailored for a product.
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ex. SUBARU car “Legacy” full model change KAO detergent “Attack Neo”➪Favorable evaluation of CMs by audience
・Understanding the intention of each advertiser, and collaborating with the production team of the relevant program.
・Packaging proposals that match the product campaign byincorporating several programs or special, single-episode programs ➪maximizing reach to target customers of product
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Content business and
Strategy for VAP
Countermeasures by NTV Group and Progress Situation1. MG Measures
Suppress MG and pay additional royalties if movie is successful 2. Leverage NTV’s teleshopping business
Sell VAP merchandise on NTV’s teleshopping programs Favorable sales due in part to terrestrial TV programs Synergetic effect seen as DVD sales at retail shops grow
3. Strengthen sales promotionPromote DVD sales on movie-related programs and spot commercials
1. Downturn of sell-through DVD/CD market and release rotation2. Increasing cost percentage of DVDs3. Rapid increase of amortization of large Minimum Guarantee (MG)
Factors for Difficult Situation
Countermeasures by VAP1. Reinforce MG measures2. Strengthen cost control of fixed fees3. Create three-year plan of audio business
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Movie business performs well, especially with hit films of which NTV is head organizer.
Box Office Sales of FY09 1H (as of November 8th )
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SUMMER WARS 1.62billion August 1st
GOKUSEN THE MOVIE 3.44 billion July 11th
20th Century Boys -Chapter 3- 4.35billion August 29th
KAIJI 1.97billion October 10th
Boku no Hatsukoi wo Kimi ni Sasagu 1.30billion October 24th
・Weekend box office sales: NTV takes top spot for nine consecutive weeks (4th week of August to 1st week of November)・“GANTZ,” staring Kazuya Ninomiya and Kenichi Matsuyama, will open
in theaters during the next fiscal year
Despite severe business environment of distribution industry, TV-shopping business continues with favorable sales. FY09-1H result: Sales revenue 5.198 billion yen;, gross profit 609 million yen
Popularity Ranking for NTV’s Teleshopping in FY09 1H1.Hanabatake Bokujo special set Foods2.Only Mineral foundation set Cosmetics3.HAMANO Leather 2WAY Bag Bags4.Dyson DC12 Plus turbine head Vacuum cleaner5.Genie Instant line smoother Cosmetics
a
① ② ③
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Mon-Fri AM “DON!DON! Pochlet”Tue-Sun late-night ”POSHLET late-night department store”
Decisive action to weather→Increase in sales
“Zenkoku Otoriyose Ochugen Special program
Broadcast the program on network affiliate stations and BS-Nippon Influential strategy
・“Evangelion” (Linked with TV program)➪Achieved over 200million yen of sales
(Goods , DVD)・Linked with “GOKUSEN The Movie”
campaign・Opened a store in Yahoo!
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Reference Materials for Financial Results
FY09 Apr.-Sep. Share (%) FY08 Apr.-Sep. Share (%)
1 Cosmetics/Toiletries 9.85 3.0 Cosmetics/Toiletries 8.9 △ 8.3
2 Alcohol 8.17 4.6 Electronic equipment 8.6 7.1
3 Pharmaceutical 8.11 7.9 Transportation/Telecommunication 7.9 5.4
4 Electronic equipment 6.6 △ 29.2 Non-alcohol 7.6 △ 10.7
5 Box-office/Entertainment 6.24 18.3 Alcohol 7.2 △ 11.4
6 Transportation/Telecommunication 6.22 △ 26.9 Automobile 7.0 △ 10.0
7 Automobile 6.16 △ 18.4 Pharmaceutical 7.0 △ 1.3
8 Service 5.99 13.0 Service 4.9 △ 8.5
9 Non-alcohol 5.79 △ 29.5 Box-office/Entertainment 4.9 7.4
10 Foods (Dairy product/Seasoning) 4.93 12.1 Finance 4.8 △ 10.5
Other 32.0 △ 5.0 Other 31.2 △ 19.1
Total 100.0 Total 100.0
Spot Sales(Apr.-Sep.)
FY09 Jul.-Sep. Share (%) FY08 Jul.-Sep. Share (%)
1 Cosmetics/Toiletries 8.91 18.6 Electronic equipment 9.2 25.1
2 Box-office/Entertainment 7.49 28.0 Transportation/
Telecommunications 9.0 19.5
3 Alcohol 7.44 26.9 Cosmetics/Toiletries 7.4 △ 16.1
4 Pharmaceutical 7.23 14.7 Automobile 6.9 △ 19.4
5 Transportation/Telecommunications 6.84 △ 25.3 Non-alcohol 6.4 △ 10.2
6 Automobile 6.43 △ 7.5 Pharmaceutical 6.2 △ 9.0
7 Service 6.3 28.9 Alcohol 5.8 △ 19.7
8 Electronic equipment 5.46 △ 41.3 Box-office/Entertainment 5.8 26.3
9 Non-alcohol 4.55 △ 29.9 Finance 5.0 △ 17.4
10 Foods(Other) 4.46 3.4 Service 4.8 △ 20.6
Other 34.9 2.3 Other 33.6 △ 19.0
Total 100.0 Total 100.0
Spot Sales(Jul.-Sep.)
Main movie lineup for FY09Title Release date Distributor
Head organizer SUMMER WARS August 1st
Now showing WARNER BROS.
Head organizer20th Century Boys -Chapter 3-
August 29th
Now showing TOHO
Head organizer Kaiji October 10th
Now showing TOHO
Head organizerBoku no Hatsukoiwo Kimi ni Sasagu
October 24th
Now showing TOHO
Head organizer Nakumonka November 11th TOHO
Head organizerA Tales of Ululu’s Wonderful Forest December 19th TOHO
Head organizer BANDAGE January 2010 TOHO