These many experiences had made the mighty tree very wise. · 62 Corporate Data 63 Investor...

��

Once upon a time, there lived on a hilltop a mighty tree—

the oldest tree in all of Japan. Throughout its long life, the mighty

tree had seen many things as it looked down from its hilltop.

These many experiences had made the mighty tree very wise.

One day, Nittele Chin with its magical bell visited the hilltop

to ask the wise old tree for advice.

Nittele Chin asked the wise old tree how to make people happy.

The wise old tree offered many words of advice.

ANNUAL REPORT 2007 1

Contents

3 NTV at a Glance

4 The Japanese Television Industry

6 Ten-Year Financial Summary

10 To Our Shareholders and Stakeholders

“ Our New Medium-Term Management Plan

outlines three goals.”

12 Interview with President Kubo: Scope and Content of the New Medium-Term Management Plan

“ With a certain sense of speed, we are promoting several structural improvements to turn NTV into a leading company.”

16 NTV’s Multicontact-Point Growth Strategy: From Television Station to Comprehensive Media Company

“ Digitization and other technical innovations have fostered various content viewing styles. We have launched numerous initiatives to make the most of the opportunities these changes afford.”

28 Corporate Governance

30 Corporate Social Responsibility (CSR)

32 Financial Section

60 Organization

61 NTV Group/NTV Global Network

62 Corporate Data

63 Investor Information

Cautionary Statements with Respect to Forward-Looking Statements:Statements made in this annual report with respect to NTV’s plans and benefits, as well as other statements that are not historical facts, are forward-looking statements, which involve risks and uncertainties. Potential risks and uncertainties include, without limitation, general economic conditions in NTV’s markets, exchange rates and NTV’s ability to continue to win customers’ acceptance of its products, which are offered in highly competitive markets characterized by continual new product introductions and rapid developments in technology.

2 ANNUAL REPORT 2007

3ANNUAL REPORT 2007

2,898

Television Broadcasting

Cultural Activities

Other

Percentage ofNet Sales



78%

19%

4%

0

100

200

300

200720062005

(Billions of yen) Sales

0

15

30

45

200720062005

(Billions of yen) Operating income

0

30

60

90

200720062005


0

4

8

12

200720062005


0

6

12

18

200720062005


0

1

2

3

200720062005


289.8289.8

25.325.3

62.162.1

8.28.2

13.713.7

1.21.2

2.42.4

1.31.3

15.115.1 14.514.5

5.25.2

8.28.2

62.562.569.469.4

36.036.033.833.8

278.0278.0 267.9267.9

NTV at a GlanceNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31

Television broadcasting is the core business of the NTV Group. We plan and produce television programs that we broadcast over our nationwide network, deriving revenues from sales of broadcasting time to advertisers and sales of programs. NTV broadcasts news, variety shows and dramas, as well as animation, sports and a host of other content according to a total programming timetable. We consistently earn kudos from viewers and sponsors alike.

In the cultural activities segment, NTV sponsors art exhibitions and concerts; produces and releases films; holds sporting events; publishes and sells publications; plans and produces music and music videos; operates a licensing business; and plans and sells musical and video recordings on CDs, videotapes, DVDs and other media. Multiuse content development, linked with broadcasting and centering on films and animations, plays an increasingly important role in NTV’s business.

Other businesses involve commercial tenant and office building leasing and management, insurance agency sales, the sale of novelty goods at various events, management of a professional soccer team and Internet-related services. We are also involved in the broadband business, the production and sale of art-exhibit-related goods, the provision of district heating and cooling systems and market research on overseas television and radio broadcasting.

NEWS ZERO The God of Entertainment

Maiko Haaaan!!!© 2007 Maiko Haaaan!!! Film Partners

Anpanman © TAKASHI YANASE/ FRÖEBELKAN • TMS • NTV

Tokyo Verdy 1969 Program-related novelty items


The Japanese Television Industry

STV

RAB

TVIABS

YBC

MMT

FCTTeNY

NTV

YTV

NKT

HTVKRY

RNBRKC

JRT

RNC

FBS

NIB

KKT

TOS

UMK

KYT

YBS

SDT

TSBKNB

KTK

FBC

CTV

Legal System Governing the Television Broadcasting IndustryTelevision stations in Japan are governed by the Broadcast Law and the Radio Law. The Broadcast Law facilitates the effective use of airwaves as a shared public asset, and the Radio Law requires broadcasters to fulfill certain public duties because of the tremendous influence they exert on society through the information they transmit. Commercial television broadcasters must be licensed by the Ministry of Internal Affairs and Communications, which regulates public airwaves and broadcasting. New entry into broadcasting is heavily restricted. Television stations are also subject to the Mass Media Decentralization Rules, which regulate control of multiple broadcasting stations by designated entities and ensure freedom of expression. Other regulations include the Restriction of Foreign Investment, which limits voting rights of foreign entities and their Japanese agents to 20%.

Features of Television Stations in Japan■ Terrestrial Television NetworkCommercial terrestrial television broadcasters in Japan have specified regions. National commercial broadcasters consist of five key stations in Tokyo. Beneath each of these stations are associated regional and local stations that form individual nationwide networks. The regional and local stations sign network agreements with their key stations and cooperate in news, programming and other business activities. However, pursuant to the Mass Media Decentralization Rules, each station is a licensed broadcaster with independent capital. These network stations, along with the equipment required for airwave broadcasts, facilitate free viewing of high-quality commercial television programming anywhere in Japan, if viewers simply install an antenna. Terrestrial television broadcasting can transmit the same information to some 40 million households at the same time through 100 million receivers nationwide. This makes terrestrial television broadcasting the most effective advertising medium for marketers—far surpassing satellite broadcasting and cable television.

■■ NTV Network Stations (Japan)

ANNUAL REPORT 2007 5ANNUAL REPORT 2007

■ Revenue Sources for Commercial Television BroadcastersCommercial television broadcasters in Japan derive their revenues mainly from broadcasting sales, specifically the fees paid by sponsors for airing commercial messages (CMs), which are broadly classified into two types: time ads during designated programs and spot ads between programs. The broadcasting industry voluntarily limits CMs to 18% of total weekly air time, with additional air time restrictions based on program length. The minimum CM lengths are 30 seconds for time ads and 15 seconds for spot ads. The two types of CMs are also sold in different ways. Time ads are normally sold through six-month contracts with sponsors, with continuation confirmed and fees renegotiated in April and October. Clients cannot place ads during their favorite programs unless slots are available. In spot ads, clients submit their desired broadcast periods, timeslots and ad prices through their advertising agency, and the CM broadcast schedule is drawn up accordingly.

■ Television Station Program ProductionIn contrast to the United States, Japanese television stations do not have restrictions on program production and copyright possession. As stations in Japan control their own program production, editing, broadcasting and copyrights, they can use the same content for various purposes by virtue of controlling the copyrights. In addition to terrestrial broadcasting of films and animations, stations have recently begun taking advantage of new opportunities to expand revenues and profits by offering content on DVDs and through overseas sales.

Trends in Advertising ExpendituresTotal advertising expenditures in Japan in 2006 reached ¥5,995.4 billion, or 100.6% of the 2005 amount, marking the third consecutive year of growth. In the first half of 2006, despite the rebound from the Aichi Expo in the prior year, advertising expenditures remained strong, owing to the Torino Winter Olympics, FIFA World Cup™ Germany and other major events. In the second half of 2006, mobile phones were advertised aggressively as “1-SEG” services (described on page 19) were launched and a mobile phone portability system was introduced. However, several factors, notably more industries spending less on advertising and the falloff after last year’s Lower House elections and the Tokyo Motor Show, reduced the total advertising expenditure growth rate compared with the previous year. Television advertising expenditures totaled ¥2,016.1 billion, 98.8% of the previous year’s figure. A host of major sporting events—the Torino Winter Olympics, the World Baseball Classic, the FIFA World Cup™ in Germany and the 2006 World Volleyball Championships—all broadcast primarily by major stations in Tokyo, raised time ad expenditures to 100.8% of the preceding year’s amount. At the same time, spot ad expenditures fell to 97.1% of the previous year’s level, as rates for regular programming declined and regular programs were suspended in favor of single-episode specials. By industry, advertising expenditures performed well in energy, materials and machinery; real estate and housing facilities; transportation and recreation; hobby sporting goods; and dining and other services. Expenditures decreased in finance and insurance; cosmetics and toiletries; foods, beverages and cigarettes; and other industries.

Source: Dentsu, Inc., Advertising Expenditures in Japan.

0

2,000

4,000

6,000

8,000

200620052004200320020

25

50

75

100

Total Advertising Expenditures and Television Advertising Expenditures in Japan

(Billions of yen) (%)

Total advertising expenditures Television advertising expenditures　 Television advertising expenditures as a percentage of total advertising expenditures

(Calendar year)


0

90

180

270

360

450

200320022001200019991998

(Billions of yen)

Net Sales

Recurring Profit

Recurring Profit Margin (%)

(Millions of yen)

1998 1999 2000 2001 2002 2003

Years ended March 31:Net sales ¥ 323,956 ¥ 330,976 ¥ 328,014 ¥ 352,409 ¥ 358,683 ¥ 336,299

Television broadcasting segment revenue 275,562 273,787 283,142 310,242 304,392 294,517 Non-broadcasting revenue Operating income 48,284 48,981 54,351 67,303 63,574 47,407 Recurring profit 48,323 49,920 56,115 68,089 62,662 46,332 Net income 24,230 25,921 34,003 36,008 34,648 20,296 Net cash provided by operating activities — — 42,152 45,549 38,891 25,981

At March 31:Total assets ¥ 338,797 ¥ 316,758 ¥ 364,896 ¥ 410,042 ¥ 443,798 ¥ 476,634 Total equity*1 185,502 209,239 253,912 291,501 323,319 327,116

Per share data (Yen):Net income*2 ¥ 955.58 ¥ 1,022.28 ¥ 1,341.04 ¥ 1,419.96 ¥ 1,366.34 ¥ 801.99 Equity 14,631.67 16,504.41 20,025.50 11,495.33 12,750.14 13,102.25 Cash dividends*2,*3 67.50 70.00 80.00 120.00 120.00 120.00

Ratios (%):Return on assets (ROA) 7.2 7.9 10.0 9.3 8.1 4.4 Return on equity (ROE) 13.9 13.1 14.7 13.2 11.3 6.2 Recurring profit margin 14.9 15.1 17.1 19.3 17.5 13.8 Television broadcasting segment revenue ratio 85.0 82.7 86.3 88.0 84.9 87.6

Ten-Year Financial SummaryNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31

Notes: *1. From the fi scal year ended March 31, 2007, NTV adopted the Accounting Standard for Presentation of Net Assets in the Balance Sheet (Accounting Standards Board of Japan Statement No. 5) and the Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet (Accounting Standards Board of Japan Guidance No. 8).

*2. Calculations for the fi scal years ended March 31, 1998 through 2000, are retroactively restated for later stock splits. *3. Dividend fi gures include an extraordinary dividend of ¥22.5 per share in the fi scal year ended March 31, 1998; a dividend of ¥25 per share in the fi scal year ended March 31, 1999 to commemorate NTV’s 45th anniversary of establishment; an extraordinary dividend of ¥35 per share in the fi scal year ended March 31, 2000; extraordinary dividends of ¥70 per share in the fi scal years ended March 31, 2001 and 2002; a ¥70 per share dividend in the year ended March 31, 2003, to commemorate NTV’s 50th anniversary of establishment; a ¥70 per share dividend in the year ended March 31, 2004, to commemorate the relocation of NTV’s head offi ce; and a ¥60 per share dividend in the year ended March 31, 2006, to celebrate NTV’s relaunch. *4. Television broadcasting and non-broadcasting revenues exclude intersegment sales and transfers.

7ANNUAL REPORT 2007

20102007 20082006200520040

5

10

15

20

25(%)

New Medium-TermManagement Plan

Shifting to

a Growth Trajectory

Shifting to

a Growth Trajectory

2004 2005 2006 2007 2010

¥ 328,375 ¥ 357,614 ¥ 346,642 ¥ 343,652 Net sales 426,000 Television broadcasting

285,016 289,810 277,977 267,904 segment revenue*4 316,000 76,100 Non-broadcasting revenue*4 110,000

35,937 34,325 28,551 30,344 36,800 35,591 30,014 34,142 Recurring profit 46,000 19,359 16,846 13,701 18,332

30,519 49,286 32,683 31,458

¥ 513,430 ¥ 493,558 ¥ 519,952 ¥ 529,265 354,046 366,646 398,018 411,995

¥ 771.74 ¥ 671.08 ¥ 545.40 ¥ 741.60 14,183.02 14,688.07 15,945.74 16,363.52

120.00 165.00 165.00 170.00

3.9 3.3 2.7 3.55.7 4.7 3.6 4.6

11.2 10.0 8.7 9.9 Recurring profit margin 10.8% Television broadcasting

86.8 81.0 80.0 78.0 segment revenue ratio 74.2%

After thinking carefully about all the advice it had received

from the wise old tree, one day Nittele Chin pressed firmly on

its magic bell. A strange and wonderful thing happened.

Many saplings and flowers began to sprout one after another.



As Chairman and President of NTV, we ask for your support as we put our utmost efforts into creating a new management framework for business expansion.

Three GoalsAt the end of the fiscal year ended March 31, 2007, NTV

reassessed its Medium-Term Management Plan that began

in the previous year and elected to introduce a new plan in

May 2007 to continue from the year ending March 31, 2008,

through the year ending March 31, 2010. The Company set

three goals toward realizing the new plan: (1) recapture the top

position in ratings, (2) unify the NTV Group and (3) establish

trust with viewers.

NTV’s goal of regaining ratings dominance expresses the

Company’s strong resolve to obtain and defend its ranking

against all other networks. The NTV Group’s unification goal

indicates the readiness of all 4,000 employees, including

transferred personnel, to take on new challenges and weather

internal and external difficulties. The Group’s third goal of

building trust shows awareness of its tremendous social

responsibilities as a media corporation and its commitment

to producing more meaningful content. Amid the deluge

of information in the modern era, television networks have

amassed information that they must screen in the public

interest, always bearing in mind viewers’ responses. Keeping

our social obligations foremost, we will take advantage of this

opportunity to earn the trust of the public. The NTV Group is

committed to fulfilling its obligations to society, ensuring that

all employees remain fully aware of the influence of television

broadcasts as they go about their duties.

To Our Shareholders and Stakeholders

Noritada HosokawaRepresentative Director and Chairman

HAYAO MIYAZAKI NI-TELE really BIG Clock

The huge NTV clock designed by

Director Hayao Miyazaki of Studio Ghibli

was completed in December 2006, five

years after its conceptualization and in

time for the New Year’s festivities.

The largest animated clock in the world

at 12 meters high by 18 meters wide,

this clock decorates the NTV Tower in

Shiodome.Shintaro KuboRepresentative Director and President

11ANNUAL REPORT 2007

Performance in the Year Ended March 31, 2007The Japanese economy continued its recovery in the fiscal year

ended March 31, 2007, with total advertising expenditures

in calendar 2006 increasing 0.6% year on year, to ¥5,995.4

billion, according to Dentsu Inc. However, television advertising

expenditures shrank 1.2%, to ¥2,016.1 billion—the second

consecutive yearly decline. In this stagnant television

advertising market, time sales for the Company’s mainstay

television broadcasting segment slipped 2.5% over the

preceding year, with spot sales down 4.7%. Although the

media commerce, film and events businesses contributed

handsomely to revenues, the Group’s consolidated net sales

edged down 0.9%, to ¥343,651 million.

At the same time, all profit figures rose as a result of

overall cost-cutting efforts, focusing on production expenses

and including reduced depreciation on equipment for digital

terrestrial broadcasting. Operating income increased 6.3%, to

¥30,344 million, and net income surged 33.8%, to ¥18,332

million.

Becoming a Total Media CorporationRapid development of digital technology is currently thrusting

the broadcasting industry into an unprecedented period of

major change, marked by the fusion of broadcasting and

communications and the emergence of multimedia and

multichannel broadcasts. “1-SEG” services launched in April

2006, and terrestrial television broadcasting is set to go fully

digital in 2011. Such technical innovations mean a switchover

from a television-only era to one in which television is only one

option. Viewer exposure to video media is becoming vastly

more pervasive than during the analog era.

The NTV Group sees this revolution as an opportunity

to maximize corporate value by fully leveraging its content

production capabilities and realizing a multicontact-point

strategy. This approach will create an environment that allows

the public to access NTV content anytime, anywhere, through

any video platform—television, Internet and game machines—

and via mobile communications services, such as “1-SEG.”

The user base for “1-SEG” mobile phones has spiked

upward in anticipation of the 2008 Beijing Olympics, with

units expected to soar to more than 10 million this fiscal year.

To seize the major business opportunities inherent in this

sudden increase in receivers, which is equivalent to 10%–20%

of television units in current use, the Group is aggressively

developing content, including tie-ins with television programs.

Television networks have traditionally vied for control of

viewer ratings for household television sets. Henceforth, the

Company intends to distribute NTV content to every type of

video platform, gaining preeminence across all viewing options

to reach its ideal as a total media company integrating mass

media and interactive media, while satisfying viewer and

sponsor needs.

NTV strives to employ content production—its greatest

strength—to take back the No. 1 spot in ratings this fiscal year,

moving on to achieve the remaining goals of the New Medium-

Term Management Plan by March 31, 2010.

We thank our shareholders and all our stakeholders for

their recognition of our true potential, and we ask for your

continued support.

August 2007

Note: At the General Meeting of Shareholders on June 28, 2007, former Director and Executive Vice President Noritada Hosokawa was appointed Representative Director and Chairman.

■ Financial HighlightsYears Ended March 31 (Billions of yen)

2006 2007 Change

Net sales ¥346.6 ¥343.7 −0.9%

Operating income 28.6 30.3 +6.3%

Recurring profit 30.0 34.1 +13.8%

Net income 13.7 18.3 +33.8%

Noritada Hosokawa Shintaro KuboRepresentative Director and Chairman Representative Director and President


QThere are no changes to the Group’s long-term

management vision of becoming a total media

corporation or its medium-term goals of absolute

success: No. 1 in broadcasting sales, No. 1 in content delivery,

No. 1 in non-broadcasting revenue sources and No. 1 in

delivering customer satisfaction. Only the numerical targets have

changed. The previous plan presupposed that advertising revenue

Interview with President Kubo:

Scope and Content of the New Medium-Term Management Plan

At the end of the fiscal year ended March 31, 2007, NTV reassessed its Medium-Term Management

Plan, which commenced in the previous year, and elected to introduce a new plan in May 2007 to

continue from the year ending March 31, 2008, through the year ending March 31, 2010. We asked

President Shintaro Kubo about the new plan’s content and objectives.

would expand to cover a predicted 1% rise in advertising

expenditures. We have revised this estimate, this time assuming

that customer spending on television advertising would lag

the Japanese economy’s overall growth. In pursuit of further

expansion, we have set high revenue targets for non-

broadcasting businesses, which are growing rapidly.

What parts of the new plan have been modified from the previous version?

13ANNUAL REPORT 2007 13ANNUAL REPORT 2007

FY2006Performance

FY2009Target

Comparison with FY2006

Growth (APR)

Consolidated net sales ¥343.7 ¥426.0 + ¥82.4 +7.4%

Television broadcasting segment revenue* 267.5 316.0 + 48.5 +5.7%

Broadcasting revenue 246.5 280.0 + 33.5 +4.3%

Non-broadcasting revenue* 76.1 110.0 + 33.9 +13.1%

Recurring profit 34.1 46.0 + 11.9 +10.5%

RP margin 9.9% 10.8% +0.9 ppt —

Television broadcasting segment revenue as a proportion of net sales 77.8% 74.2% -3.6 ppt —

QThe existing plan was revised in response to changes

in the external environment, reflecting the bustling

broadcasting industry with its daily institutional and

technical changes. Digital technology, in particular, is advancing

far more rapidly than we had predicted. In step with these

changes, the fusion of broadcasting and telecommunication is

prompting more non-broadcasting companies to launch

broadcasting-like ventures. The Japanese government is also being

forced to make institutional changes to utilize airwaves effectively.

These moves, of course, substantially affect the business and

revenue of licensed companies, such as NTV and other television

networks. Moving into the digital multichannel era will enable

interactive broadcasting, and as we employ broadcast satellite (BS)

and communications satellite (CS) broadcasting naturally we

must revise our plans in response to changes in our environment.

We hope to continue revising the plan as needed even during

its implementation by conducting internal monitoring every six

months.

I believe it will be difficult to regain and maintain the top

position in the industry without promptly making decisions to

respond to rapid changes in the business environment and

making the necessary structural reforms accordingly.

Please explain the background and purpose of formulating a New Medium-Term Management Plan at the end of the previous plan’s first year.

*Television broadcasting and non-broadcasting revenue exclude intersegment sales and transfers.

■ Numerical Targets for the New Medium-Term Management Plan(Billions of yen, unless otherwise noted)


The New Medium-Term Management Plan spells out six

key measures.

For broadcasting revenue recovery, NTV will

continue to reexamine programs that have experienced drops

in viewership. Bold programming improvements include our

decision to reduce broadcasts of this year’s Yomiuri Giants games.

The Company also intends to release a steady stream of novel

and inventive programming.

To enhance overall revenue for non-broadcasting segments,

rather than entering totally new fields we will pursue deployment

tied with terrestrial broadcasting and other programming. For this

purpose, we reformed the corporate organizational structure by

setting up digital content, film and content promotion centers

within the Programming Division to effectively use the same

content in variety of ways. With little chance of major growth in

the television advertising market, the Company will strengthen its

media commerce, licensing and film businesses and boost other

non-broadcasting revenue sources.

In promoting multiple contact points, the Company aims

to create an environment where NTV is viewable anytime,

anywhere, whether at home, out and about or on the train.

The Company’s cutting-edge efforts on multiple contact points

earned it the Mobile Project Award 2006 and other third-party

praise, along with many requests for lectures and seminars.

The programs and information NTV transmits are now accessible

through an array of methods in locations and at times previously

Qunavailable. We will develop a business model that applies

research and development results for solid revenue as we move

from research to business applications.

NTV is planning a major project in 2008 to commemorate its

55th anniversary—the first network to reach this watershed.

Television networks in Japan are this country’s Hollywood in the

sense that they overwhelmingly control content production.

We would like to deliver a memorable, unprecedented program

demonstrating the predominance of television networks in Japan,

notably NTV, by showing terrestrial broadcasting stations’ ability

to produce content and transmit programming and information.

To improve the Group’s competitiveness, NTV aims to better

utilize content across the Group to boost revenue. To accomplish

this goal, the Company is reorganizing the Group into

value-enhancing and profit-generating areas, using cost and

business synergies to build a more profitable framework.

Concerning compliance and social responsibility, the

Company’s obligations as a terrestrial broadcaster are greater

than in the past, owing to the continued emergence of visual

media and related businesses as well as changing information

infrastructures. NTV will work to enhance viewer trust by

ensuring that management and employees are constantly

aware of the magnitude of influence afforded by the power to

transmit the same information to some 40 million households

at one time.

What specific measures are in the plan?

Interview with President Kubo: Scope and Content of the New Medium-Term Management Plan

QI recognize that in the year since launching the previous

management plan the Company has gained an

understanding of its direction. The question now is how

quickly we can implement these plans. I believe we must institute

daring reforms and concrete measures with a sense of urgency.

We have set high numerical targets for the New Medium-Term

Management Plan under the banner of “Total Success of the

Four No. 1s.” These numbers have been back-calculated based

on the market share from the period when NTV was the leading

company. Underscoring this commitment, to both internal and

external audiences we are communicating NTV’s aim of quickly

retaking its lead in viewer ratings and eliminating the gaps

between current and target figures.

What challenges does NTV face in achieving its new goals?


We anticipate competition for broadcasting revenue

to remain stringent, offering little opportunity for

substantial growth in television advertising

expenditures. The Company places importance on delivering

hard-hitting programming that alerts sponsors to the media

potency of terrestrial television broadcasting. Particularly in the

year ending March 31, 2008, with its marked absence of events

on the scale of the Olympics or the FIFA World Cup™, we plan

to deliver high-quality major and regular programming that

demonstrates the power and scale of terrestrial broadcasting.

Although households using television (HUT) figures have

declined during the past one or two years, I would like to dispel

the notion that fewer households are watching television. This

misconception is a major theme concerning media value transfer

at television networks. Although HUT has decreased during

“golden time” (from 7 p.m. to 10 p.m.), this is simply a result

of viewership shifting to late-night and early-morning times.

In no way does this figure indicate a drop in the number of

viewers. “1-SEG” services and other viewing options besides

home television sets are also becoming increasingly available.

The Company will thoroughly research how viewer access to

television changes in the fiscal year ending March 31, 2008,

striving to bring in revenues through programming that meet

sponsors’ needs.

Among non-broadcasting revenue sources, our primary

challenge lies in turning the ability to interlink television

programs and transmission to mobile phones with revenue-

QInterest in dividends has surged as the securities markets

in Japan become more attentive to general investors. In

light of such new realities, two years ago the Company

put forward a dividend policy with a payout ratio of 33% (¥150

minimum). NTV has not cut base dividends since that time, even

during years of additional commemorative dividends. We

intend to do our utmost to meet shareholders’ expectations

by increasing NTV’s corporate value.

Please explain the Company’s policies regarding dividends and other returns to enhance shareholder value.

Qgenerating business. This is amid predictions that “1-SEG”

services will reach 10 million units during the year ending March

31, 2008, and automotive and other mobile receivers will

surpass 10 million units in the near future. We are considering

a number of potential ways to turn this availability into paying

business. We will invest boldly in this area, formulating new

operating schemes and tackling this opportunity vigorously.

NTV created a new revenue stream in the previous fiscal

year by launching a news transmission business for trains in the

Tokyo area. Currently these transmissions are pre-recorded, but

it is technically possible to transmit live content to trains and

buses. The Company has already completed experimental

demonstrations of live content transmission and considers

establishing this business model another important challenge

for the year ending March 31, 2008.

The Company will employ the filmmaking expertise gleaned

through production of the hit film DEATH NOTE to increase

movie revenues. We will also improve broadcasting revenue by

pouring resources into our media commerce business, which

recorded 3.1 times higher net sales in the year ended March 31,

2007 than in the preceding fiscal year.

NTV will continue giving full play to its content production

capabilities—the Company’s greatest strength—to enable people

all over the world to access NTV content anywhere, at any time.

Note: Households using television (HUT) is the ratio of the number of households viewing television at the time a survey is conducted to the total number of viewing households.

Finally, please elaborate on the market trends and forecasts for the year ending March 31, 2008.


NTV’s Multicontact-Point Growth Strategy:

From Television Station to Comprehensive Media Company

T elevision stations started digital terrestrial broadcasting in

2003 in anticipation of the cessation of analog terrestrial

broadcasting in 2011. With the changeover, television programs

are being recorded digitally, enabling easy deployment of

program content to all manner of digital video devices.

Technological innovation in the broadcasting and

telecommunication industries continues advancing at a feverish

pace. The recent rapid popularization of mobile phones with

“1-SEG” capabilities allowing television viewing and the

emergence of server-fed broadcasting and VoD services have

dramatically increased viewing opportunities for video media.

For television stations—Japan’s largest video content

producers—this represents a major, long-awaited business

opportunity. NTV is launching content distribution businesses

for all types of video devices. The Company also aggressively

pursues media commerce, film and copyright businesses as it

evolves into a comprehensive media corporation by uniting

mass media and interactive media.

ANNUAL REPORT 2007ANNUAL REPORT 2007 17

NTV Anytime, AnywhereThe emerging array of video devices represents a tremendous business opportunity for

NTV, which counts original content production as its strongest capability. The Company’s

business opportunities have multiplied from the single contact point of home television to

the Internet, mobile devices and game machines, as well as displays on trains, in train

stations and on large outdoor screens. In this way, a marketplace previously limited to a

24-hour daily timetable is expanding without end. NTV’s future growth rests on how many

opportunities the Company can create to expose viewers to its content. With this in mind,

NTV is promoting a multicontact-point strategy to realize an environment where people can

watch NTV anytime, anywhere. We are expanding multiuse deployment of content and

building business models for each video device, yielding substantial yearly increases in

broadcasting revenue other than terrestrial television broadcasting.

News programs are currently at the vanguard of the Company’s multicontact-point

strategy. NTV is building an advanced system that is difficult for other stations to imitate,

by distributing video content through satellite broadcasting, the Internet, mobile phones

and home game machines, as well as digital monitors in train cars on the JR Chuo Line.

TerrestrialBroadcasts

In-TrainMonitors

BSBroadcasts

CSBroadcasts

“1-SEG”DataBroadcasts

NEWS24Mobile Site NEWS24

E-mailBulletins

GameMachines

NTV2VoD News

NEWS24Web Site

NEWS24Podcasts

CATV

Mobile phones and other portable devices

Terrestrial, CATV and Satellite Broadcasting Internet and podcasting

NEWS24e-mail bulletins

The Evolution of Multicontact-Point News Broadcasts

NTV NEWS24 showing inside a JR Chuo Line train

ANNUAL REPORT 200718

NTV’s Multicontact-Point Growth Strategy

Using Content Multiple TimesNTV’s film business is also generating major results through the multiple use of content.

The smash hit film DEATH NOTE showed in a new two-part format, the prequel being

broadcast on terrestrial television prior to the cinematic release of the sequel. The link with

television proved highly effective, with terrestrial broadcast ratings reaching 20% and box

office receipts for the sequel doubling that of the prequel. The film also set records in DVD

sales and overseas editions with secondary-use content.

NTV took a new approach for animation and drama series from February 2006 by

funding production costs for the programs through D.N. Dream Partners, a limited liability

partnership between NTV and NTT DoCoMo, Inc. The business model involves producing

works with multiple uses in mind: first broadcasting the programs on terrestrial television,

then using the content a second time for DVDs and a third time for merchandise sales.

This model effectively limits production costs as it is based on recovering proceeds through

total sales.

NTV’s media commerce business is generating steadily rising sales through a new format

linking information programming with television-based shopping.

The potential of multiuse is far from exhausted. NTV will continue to expand its businesses

by utilizing the Company’s content production and media capabilities in all their forms.

Selling High-End Program Formats Overseas

Masquerade Earns Top Ratings in France

NTV also sells its program formats (production expertise

and ideas) overseas. In July 2006, TF1—France’s largest

commercial broadcaster—aired a French version of

Masquerade, garnering high ratings of 34.7% and

towering over all other programs in the time slot. The

project enjoyed extensive coverage by the local media,

resulting in offers to NTV from other countries as well.

The Company supplied program production expertise and

other information to TF1 and dispatched program staff to

France for editorial supervision.

To strengthen format sales in the United States, in May

2006 NTV also concluded an agency agreement with

International Creative Management, Inc. (ICM), a total

entertainment management company based in Los

Angeles. While programs with formats supplied by NTV,

such as Master of Champions (broadcast by ABC of the

United States and called “World✩Records” in Japan), are

already being aired in the United States, we intend to

develop and sell program formats worldwide through the

extensive human network and expertise of ICM.

CLAYMORE© Norihiro Yagi / Shueisha© DNDP, VAP, avex entertainment, Madhouse

RADICUL X POSHLET


New Broadband Deployment■ NTV2

NTV2 launched in October 2005 as the first Internet video delivery service implemented

primarily by a terrestrial television station. The service separates itself from other VoD

services by focusing on content more closely linked with news programs and other

terrestrial television broadcasts, in addition to original content. With 589,044 registered

users as of March 31, 2007, the service operates on fee-based content and free content

with advertising revenues from sponsors.

In the year ended March 31, 2007—NTV2’s second year—the service gained popularity

by reinforcing tie-ins with terrestrial broadcast programming and featuring behind-the-

scenes looks at a number of drama and variety programs, as well as other unaired content.

Such popular programs as 24-Hour Television have further raised interest by distributing

special video footage. NTV2 continues to grow as a service supported by a broad user base,

with such additions as a video contribution service, which has been attracting attention

recently.

■ ”1-SEG” Services

“1-SEG” (one-segment) services enable viewing of digital terrestrial broadcasts with mobile

devices. “1-SEG” mobile handsets not only display televised images clearly, the device’s

specifications enable tie-ins between television and Internet services. NTV seeks to quickly

develop the handset specifications and basic service models that will underpin its “1-SEG”

business, going on to develop and offer a variety of services that maximize the advantages

of “1-SEG.” In the example of Professional Baseball 2007, we datacast scores and other

content that changes as games progress, whereas player directories and other services

requiring database searching are placed on the Internet. In this way, NTV’s services embody

a composite television and Internet approach.

Such efforts have been lauded from many quarters, including recognition in the

Mobile Project Awards 2006—a first for a television station—and selection in the Mobile

Computing Promotion Consortium (MCPC) Awards 2007.

Simultaneous broadcasts of images identical to television broadcasts are currently

mandatory for “1-SEG” services. However, NTV is actively developing independent

content and creating business models for advertising and other revenue sources in

anticipation of the lifting of the simultaneous broadcasting requirement.

NTV2

“1-SEG” service + data broadcasts

Internet

Nittele Chin pressed firmly on its bell once more.

Many different types of fruit began to sprout from the wise old tree.

And strangely enough, the more fruit that was picked, the more appeared.



Programming Strategy to Boost Television Media ValueYoshinobu Kosugi, Director General, Programming Division


Key Person Interview 01

NTV is making sweeping changes to the timetable to seize the No. 1 position in ratings.Since last year, NTV has completely reworked its timetable to improve ratings, but rather

than simply increasing ratings our central aim is to produce more programs that resonate

with the core target group ranging from 13 to 49 years of age and enable us to generate

greater broadcasting revenues.

For spring 2007 (April) programming, NTV restructured its golden and prime time periods

by replacing more than 33% of the programming—a reorganization on a scale unheard of

in recent years. This move greatly enhanced our Saturday and Sunday ratings. For autumn

2007 (October) programming, we plan to further revise the golden and prime time periods

based on the outcome of the recent reorganization. For spring 2008 (April) programming,

NTV will bring the reorganization toward completion, seeking to retake the No. 1 position

in ratings by once again revising the time period, taking into account the overall results of

the previous year.

We promote program production that satisfies four groups of people.In the Programming Division, we strive to fill the timetable with programs that viewers are

glad to have watched, sponsors are glad to have advertised in, performers are glad to have

acted in, and production companies and staff creators are glad to have produced.

We aim to return to the roots of program production and foster a companywide

awareness of why our programs should have high ratings. In recent years, we have seen

a conspicuous trend by all stations to attempt to raise ratings through such methods as

stringing viewers along with endless cliffhangers. Such tactics undermine the public’s trust

in television media overall. We clearly indicate that our goal is not ratings themselves, but

that ratings are simply a means to enhance NTV’s brand value and business performance.

We therefore seek to enrich our content for greater viewer trust.

0

3

6

9

12

06050403020100999897

(%, Calendar year)

Viewer Ratings by Viewing Time Period

All Day (6:00–24:00)

0

5

10

15

20

06050403020100999897

(%, Calendar year)

Golden Time (19:00–22:00)

06050403020100999897

(%, Calendar year)

0

5

10

15

20

06050403020100999897

(%, Calendar year)

0

3

6

9

12

Prime Time (19:00–23:00)

Non-Prime Time (6:00–19:00, 23:00–24:00)

NTV TV Company A TV Company B TV Company C TV Company D


NTV also intends to implement more projects that draw attention and praise from

outside the Company, to raise production staff morale and spur creativity. During summer

vacation this year, a joint campaign focused on thinking about education and school is

being conducted across a variety of NTV programs. The month-long, stationwide campaign

is an industry first. We aim to cultivate a corporate environment and culture that steadily

produces original content by actively developing such frameworks.

The Company will actively release programs with multiple uses in mind.NTV produces a variety of programs that are designed to be used more than once, with

project funding from a limited liability partnership between NTV and NTT DoCoMo, Inc. In

June 2007, we broadcast Galileo’s Gene, the first golden time program created from a

multiuse standpoint. The new project drew attention for its multiple tie-ins with mobile

devices, publishing and DVD sales. In late-night time slots we are also broadcasting drama

and variety programs specifically designed for secondary use. Overseas programs and DVD

sales of animation titles DEATH NOTE and NANA are performing very well, and we will

continue to produce works that consider deployment after broadcast.

From January 2008 to March 2009, NTV will implement its 55th Anniversary Plan,

broadcasting commemorative programs and holding special events. We are currently

making preparations for the plan and creating highly original projects bearing the stamp

of NTV’s uniquely ambitious and inventive character. To mark this event, we intend to

broadcast programs unlike any that have been seen in the past 55 years of television history.

Toward Full Deployment of “1-SEG” BusinessLaunch of “1-SEG” Project 2007

In the year ending March 31, 2008, the “1-SEG” mobile device base is expected to reach

10 million units and continue growing rapidly thereafter. Independent “1-SEG” broadcast

services will also likely be allowed soon. During the year, NTV launched the “1-SEG” Project

2007, led by the Programming Division Director General. We will leverage our expertise and

results in “1-SEG” to achieve service, programming and business models befitting NTV. We

seek further growth by developing independent broadcasting content that utilizes “1-SEG’s”

media advantages and new sales promotions that link broadcasting and telecommunications,

spearheading independent broadcasts as the leading “1-SEG” company.

The “Gakko te nani?” campaign

Scene from the strong-selling Downtown no Gaki no Tsukaiyaarahende!! DVD


Business Strategy in the Multimedia AgeShinji Takada, Director General, Sales Division



NTV must quickly develop new data on viewership in response to changes in the viewing environment.In recent years, as companies focus on cost-effective advertising spending, television

advertising expenditures have remained sluggish. This situation does not imply that

television has lost its influence as a medium, but indicates that the marketing data showing

the effectiveness of television advertising is insufficient, making it difficult for sponsors to

secure the necessary funds.

Japan is a leader in television viewership, and viewers watch television via a variety of

digital devices, including computers, mobile phones and hard disk drives. However, viewer

ratings—considered the most important indicator for the television industry—measure only

real-time viewing of household television sets. I believe we first have to create new market

data that reflects the current viewing environment. We need to supplement conventional

rating data with the tracking functions and interactivity of the Internet, building marketing

systems led by television advertising. This new data should demonstrate that advertising on

NTV generates high numbers of Web site hits, purchase rates and contract success rates,

thereby increasing our advertising revenues.

We will expand broadcasting revenues by targeting sponsors’ non-advertising budgets.NTV offers new projects that sponsors find attractive and effective as we seek ways to draw

from every fiscal resource, including budgets for promotional costs, Internet expenses and

other non-advertising funds. We also promote changes in awareness among our production

staff to maintain the perspective of how a given program will produce revenues and what

value can be added during production.

In February 2007, NTV broadcast nationwide a program sponsored by Recruit Co., Ltd., in

which television personality Jicho Kacho introduces Recruit client companies. This program

was funded not from Recruit’s advertising and promotional budget, but out of its hiring

budget. This approach tapped an entirely new financial resource, and the sponsor found the

project intriguing. We are taking on a steady stream of similar challenges.

Cutting-Edge Cross-Media

Multiuse Project Broadcast of

Galileo’s Gene

On June 14 at 7 p.m., NTV broadcast Galileo’s Gene, a two-hour science variety program.

This completely new kind of science variety program introduced mysterious theories from around

the world unexplained by everyday modern knowledge or science and presented a $10,000

research grant to the researcher whose theory was judged most “impossible” by viewer votes

submitted via mobile phone.

NTV began distributing digest images of each theory on an official mobile site, MY Nittele,

in April—prior to the broadcast—accepting viewer votes by mobile phone until the day the

program aired. The day after the broadcast, the Company quickly released a program DVD

and began selling related books on June 30. This unprecedented, multifaceted cross-media

approach entailed stirring interest via mobile phone, airing the program and providing follow-up

entertainment through DVDs and books.

NTV will continue to offer new content services that link broadcasts and telecommunications.Galileo’s Gene


The Power of a Film Business Undertaken by a Television StationSeiji Okuda, Deputy Director General, Film


NTV develops its film business through a production committee system.The production committee system is a film production approach unique to Japan, wherein a

committee is formed for each film and a number of companies participate in and contribute

capital to the project. Films do not easily produce profits through box office receipts alone.

Under the production committee system, however, profits are realized after several years

because the films are designed to recover proceeds from merchandise and DVD sales,

television broadcasts and other multiuse prospects. The system’s high profit potential for hit

releases has recently prompted NTV to infuse more capital to produce more works as the

lead manager of the production committee. This person is the core of the committee,

contributing to planning and production and controlling various rights. Production is the

natural forte of a television station, and in the third year of NTV’s serious foray into the

film business—after repeated trial and error—the Company has produced major hits like

ALWAYS—Sunset on Third Street and DEATH NOTE.

DEATH NOTE exemplifies a successful television tie-in. The division of the movie into two

volumes shown separately was unprecedented in the film industry. The first volume was

specially aired during Friday’s Movie time slot before the theatrical release of the second

volume, a strategy that bolstered both viewer ratings and box office receipts. In the future,

NTV intends to make significant advances in its film business through efforts that include

film versions of drama series.

Films offer a variety of ripple effects besides providing revenue.Films are inherently suited to multiuse deployment. Their primary use comes in theatrical

releases, after which the works can be propagated in almost any form, commonly used

again in video and DVD form, sold overseas, televised terrestrially and by satellite and linked

with Internet content. Moreover, film copyrights last 70 years, so long-term simultaneous

revenue streams are possible. NTV-produced films shown outside the scope of terrestrial

broadcasting also play a significant role in public relations and investor relations through

exposure to a wide range of people around the world.

Furthermore, such films serve to export Japanese culture. 2005’s ALWAYS—Sunset on

Third Street earned plaudits for its depiction of Japanese lifestyles, culture and ways of

thinking, receiving numerous film awards in Japan and overseas.

A Collection of High-Profile Films

Five Major NTV-Led Works Showing in the Year Ending March 31, 2008

ALWAYS—Sunset on Third Street 2© 2007 “Always2” Film Partners

NTV is heading up the production committee for five films released or to be released during the

business year: TOKYO TOWER—Mom & Me, and Sometimes Dad—in April, Maiko Haaaan!!! in

June, ALWAYS—Sunset on Third Street 2 in November, A Tale of Mari and Three Puppies in

December and Spinoff L in February. Maiko Haaaan!!! is an ambitious project that includes special

promotional spots at kiosks, the commercialization and sale of Ansan no Ramen made by the main

character and a variety of other corporate tie-ups. ALWAYS—Sunset on Third Street 2 follows the

original film, which won 12 of 13 awards in the 2006 Japan Academy Prizes. Spinoff L is attracting

considerable attention from Hollywood as a spinoff of the film DEATH NOTE.

Focusing on these five NTV-led films, the Company aims to bring a total of 12 million people

to theaters.

Note: Titles indicated above are provisional, and may change.

Then animals began to gather on the hilltop.

Now, Nittle Chin and its magic bell are always surrounded

by laughing voices.

Thanks to Nittele Chin’s magic, the hilltop where

the wise old tree lived had grown into a merry forest.



Corporate Governance

NTV’s Corporate Governance Organization

LegalOffice

CounselNTVWhistle

Affiliated CompaniesBusiness Divisions

Charges

Direction/Supervision


Governance/Supervision

ProgrammingDeliberations

Council

General Meeting of Shareholders

IndependentAuditors

Independent Audit

Appointment/Dismissal

Reporting

ReportingReportingReporting Appointment/

DismissalAppointment/

Dismissal

Direction/Supervision Audit

Audit

Oversight

Reporting

Reporting

Assignment

Reporting

Appointment/Supervision

Appointment/Supervision

Business ExecutionFramework

Reporting

Counsel

InternalControl

Committee

Deliberation and reporting on

important matters


Systempreparation

ComplianceCommittee

InternalAudit

Committee GroupManagement Council

Board of Statutory Auditors

Three Statutory Auditors(including two outside auditors)

Board of Directors17 Directors (including

six outside appointments)(Supervision of operational execution)

Full TimeDirectors Council

10 Directors(Decision-making regarding

execution of operations)

Board of Executive Officers

(12 members) (Business execution)

Basic Corporate Governance PhilosophyNTV recognizes that stable long-term growth of corporate value and greater contributions to

society lead to increased shareholder value. The Company strives to further develop its corporate

governance for swift decision making and operational execution in response to changes in the

business environment and to facilitate transparent and sound management.

Corporate Governance FrameworkNTV has a Board of Statutory Auditors with a management structure under which the Board

of Directors oversees the operational execution of the representative directors. Meanwhile,

the statutory auditors and Board of Statutory Auditors audit the operational execution of

the directors. The Company has also emphasized external monitoring of management,

incorporating six outside appointments into the 17-member Board of Directors for greater

management integrity and more transparent decision-making processes. The three-member

Board of Statutory Auditors includes two outside auditors for greater independence from the

Board of Directors and stronger auditing functions related to operational execution.

Under the Board of Directors, NTV has established an Internal Audit Committee to supervise

overall business. The Remuneration Committee, charged with fielding inquiries about

compensation for directors, was also formed under the Board of Directors. The Company

also set up a Compliance Committee to ensure thorough compliance and a high degree of

transparency in NTV’s activities, thus striving to reinforce society’s trust and earn its support.

An Executive Officer System is a means of delegating authority, accelerating decision making

and clarifying responsibilities for the execution of operations. In addition, oversight and auditing

functions are conducted by the Board of Directors, auditors and the Board of Statutory Auditors,

all of which include outside officers.


Sample emergency broadcast scene

Establishing Internal Control Systems■ Compliance Framework

NTV promotes compliance with laws and regulations, as well as highly transparent corporate

activities, by maintaining a Compliance Committee consisting of outside professionals, such as

lawyers, to serve as directors and observers. The Company has formulated the NTV Compliance

Charter to which all full-time officers and employees pledge, helping to confirm that corporate

activities conform to laws, the Articles of Incorporation and corporate ethics. To disseminate this

charter throughout the Company, employees are educated by the Human Resources

Administration, Corporate Administration and Compliance and Standards divisions.

At the same time, the Company has set up the “NTV Whistle” hotline to enable employees

and other concerned parties to directly report legally doubtful acts and behavior inside the

Company and request investigations. Internal auditing conducted by the Internal Audit

Committee further aids in preventing fraudulent acts.

■ Risk Management Systems

NTV maintains a Risk Management Committee, chaired by a representative director, to manage

risks across the Company and respond quickly to newly emerging risks. Various committees

throughout the Company address risks related to disasters, information management, program

production, copyright contracts, broadcasting and fraudulent acts, thereby improving each

system and updating regulations.

Broadcasters such as NTV have a special obligation to conduct emergency broadcasts

following earthquakes and other disasters. The Company therefore maintains equipment and

systems to enable uninterrupted broadcasting after such emergencies and has created the

Metropolitan Area Anti-Disaster Manual as the basis for training simulations.

■ Group Management Structure

The NTV Group Strategy Center within the Human Resources Division formulates and

implements comprehensive strategies for Group management and business content to enforce

groupwide compliance with laws and regulations, and maintain the risk management system.

Compliance-related training is given to officers and employees of the Group as necessary. The

Company also maintains a Group Management Council, consisting of representatives of the

Group companies, to share information, which reinforces the appropriateness of operations.

Implementing Takeover Defense MeasuresNTV has implemented countermeasures to large-scale acquisitions of its shares (takeover

defense measures), based on the approval of its shareholders obtained at the Ordinary General

Meeting of Shareholders in June 2006. Renewal of the takeover defense measures was

approved at the Ordinary General Meeting of Shareholders in June 2007, following additional

consideration in anticipation of the expiration of the effective period of the measures and

subsequent amendments to relevant legal statutes.

These defense measures aim to secure and enhance the Company’s corporate value and the

common interests of its shareholders. In accordance with these aims, the measures require

entities intending to make an acquisition of 20% or more of NTV’s shares to provide certain

information in advance, as well as stipulating a gratis allotment of stock acquisition rights to

existing shareholders to dilute the ratio of voting rights held by the acquirer in the event that

the acquirer is deemed abusive by an independent committee. Please refer to the May 17, 2007,

press release, Introduction of Countermeasures to Large-Scale Acquisitions of Nippon Television

Shares (Takeover Defense Measures) on the NTV Web site:

http://www.ntv.co.jp/ir/library/result/pdf/19_4q_2.pdf.


Corporate Social Responsibility (CSR)

NTV’s Basic Policy on SustainabilityNTV Sustainability is our corporate management program encompassing activities aimed at

contributing to sustainable development of the environment, global society and business.

The program pursues the three key areas of financial, environmental and social

sustainability. In addition to striving to produce high-quality programs that attract high

viewer ratings, NTV works to remain financially viable in the new digital era through efficient

use of the cutting-edge capabilities of the NTV Tower. For the environment, the Company

promotes ecology through its programming and works to reduce the environmental footprint

of its business activities, and thus leave behind a beautiful world for future generations.

Socially, we aim for swift decision making and business execution in response to changes in

the business environment to achieve sustainable growth of corporate value and enhanced

contributions to society.

Stance on Environmental and CSR ActivitiesThe Company is keenly aware of its social responsibilities as a leading media company

and strives to promote global environmental preservation through programs and events in

line with NTV Sustainability. We have also established the NTV Environment Policy, advancing

environmental protection activities headed up by the NTV Eco-Committee and the NTV

Environmental Management Office. In November 2005, the environmental management

system (EMS) in place at the NTV Tower was awarded ISO 14001 certification, the

international standard for such systems. This achievement marked the first time that a key

commercial broadcaster in Tokyo was recognized with certification on a companywide basis.

The Company also actively implements thorough compliance measures, as incorporated in

the NTV Compliance Charter. Concerning disclosure, the charter calls for the Company to

disclose pertinent information in a timely and accurate fashion and conduct its activities with

fairness and transparency.

New efforts for the year ended March 31, 2007, included the IT Planning & Development

Division’s certification received in April 2006 under ISO 27001, the international standard in

information security management systems (ISMS). Also, in April 2006 as part of efforts to

reinforce compliance standards, NTV implemented a review of its regulations and added

provisions that prohibit insider trading. Included was a system mandating notice prior to

trading of NTV stock, as well as restrictions in principle on short-term trading of stocks in

companies where NTV has come into contact with sensitive insider information through

the gathering of material for its news and other programs. We are also holding educational

sessions groupwide to heighten awareness of compliance issues. We expanded the

Company’s ISO 14001 certification in December 2006 to cover the Kansai Office, the

Nagoya Sales Office, the Kojimachi Building and the Ikuta Studio.

NTV Original Social Contribution Activities through Television Broadcasts■ 24-Hour Television: “Love Saves the Earth”

NTV broadcast its 24-Hour Television program on August 18–19, 2007, based on the theme

of “life-changing moments.” This marked the 30th annual broadcast of the program since its

inception in 1978. Guided by the principle “Love Saves the Earth,” viewer donations raised

NTV has been selected as a member of the FTSE4Good Index series of environmental sustainability indices provided by FTSE International Limited of the United Kingdom, for four consecutive years.


Nagasaki International Television BroadcastingCity of Tsushima, Nagasaki PrefectureMay 26 (Saturday) and 27 (Sunday)

Yomiuri TelecastingLake Biwa, Shiga PrefectureJuly 1 (Sunday)

Yamagata BroadcastingTobishima Island, City of Sakata, Yamagata PrefectureMay 26 (Saturday)

Yamanashi Broadcasting Systemand Shizuoka Daiichi Television

Base of Mt. Fuji, Shizuoka side July 29 (Sunday)

Yamanashi side August 11 (Saturday)

Nippon TelevisionCity of Miura, Kanagawa Prefecture

July 29 (Sunday)

Okinawa Television BroadcastingKohamajima Island, Taketomi-cho, Okinawa Prefecture

June 3 (Sunday)

Chukyo TV BroadcastingOmotehama, City of Toyohashi, Aichi Prefecture

July 15 (Sunday)

Kagoshima Yomiuri TelevisionYakushima Island, City of Kagoshima and other areas, Kagoshima PrefectureJune 3 (Sunday) and mid-July

Kumamoto Kenmin TelevisionCity of Minamata, Kumamoto PrefectureJuly 16 (Monday, a holiday)

NTV Eco Week (special program) Rei Kikukawa, From Iceland to Shirakami, Eco Tour and Adventure Trip

■ ■ Cleanup Projects in 2007

Cleaning areas of the beach in Yakushima Island, Kagoshima Prefecture, for sea turtles to lay their eggs

through this broadcast are used in charitable, environmental and disaster-relief causes

through the 24-Hour Television Charity Committee. In 2007, the funds purchased special

vehicles for public service activities, supported cleanup campaigns for the Miura shoreline and

Mt. Fuji, and aided in recovery efforts for heavy rainfall-related disasters in south-central

Nagano Prefecture and northern Kagoshima Prefecture, as well as efforts after the Noto

Peninsula earthquake and the 2007 Chuetsu offshore earthquake.

As of September 30, 2006, funds raised in the 29 times this program has aired totaled

¥25,149,304,675.

■ NTV Eco Week: “Together, Let’s Think about the Earth”

NTV’s eco-activities are aimed at leaving behind a beautiful world for future generations.

As part of these activities, every year since 2005 on June 5 we have hosted Eco Week in

conjunction with United Nations World Environment Day. In 2007, special programs and

events were held to promote ecology around the central theme of “Touch! eco,” and we

hosted the NTV Eco Event from June 8–10. We simultaneously designated June 3–10 as

NTV Eco Week, showing the current state of the global environment and the extent of

environmental deterioration through special features and tie-ins with regular programming.

We believe that television stations have the important responsibility of prompting people to

reflect on the global environment through such programs and events.

■ Promoting Free Access to Information

NTV actively strives to bridge gaps in information accessibility across an array of programs.

Such efforts include sign-language interpretation and on-screen text display of

closed-captioning for the hearing impaired, as well as audio narration tracks of drama series

scenes for the visually impaired. NTV has long worked to eliminate differences in access to

information. In 1973, the Company established the NTV “Dove of Love” Welfare Foundation

out of the desire to support those who cannot fully enjoy television due to visual and hearing

disabilities. The foundation primarily supports early detection and treatment of disabilities,

rejuvenation of functionality, and cooperative activities to raise public understanding of such

conditions. In the 30 years since its establishment, the foundation’s activities have ranged

from offering courses in sign language and distributing Braille calendars to aiding programs

for early detection of hearing and speech impediments in children. In addition, in August

2001 NTV launched Japan’s first full-length, real-time closed-captioned news programs,

known as RealCap broadcasts.

24-Hour Television the 30th anniversary of NTV’s annual charity program


Financial Section

Contents

33 Six-Year Summary

34 Management’s Discussion and Analysis

42 Consolidated Balance Sheets

44 Consolidated Statements of Income

45 Consolidated Statements of Changes in Equity

46 Consolidated Statements of Cash Flows

47 Notes to Consolidated Financial Statements

59 Independent Auditors’ Report

33

Six-Year SummaryNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31

Millions of YenThousands of U.S. Dollars*1

2007 2006 2005 2004 2003 2002 2007

Years ended March 31

Net sales ¥343,652 ¥346,642 ¥357,614 ¥328,375 ¥336,299 ¥358,683 $2,911,071

Cost of sales 238,914 242,643 245,109 217,844 215,180 218,889 2,023,837

Operating income 30,344 28,551 34,325 35,937 47,407 63,574 257,043

Net income 18,332 13,701 16,846 19,359 20,296 34,648 155,290

Capital expenditures 6,043 6,266 9,214 49,761 30,044 34,364 51,190

Depreciation 14,361 17,561 21,060 12,676 5,855 6,045 121,652

EBITDA 46,775 43,896 52,916 47,361 43,877 62,368 396,230

At March 31

Total assets ¥529,265 ¥519,952 ¥493,558 ¥513,430 ¥476,634 ¥443,798 $4,483,397

Total equity*2 411,995 398,018 366,646 354,046 327,116 323,319 3,490,004

Per share data (Yen)

Net income*3 ¥ 741.60 ¥ 545.40 ¥ 671.08 ¥ 771.74 ¥ 801.99 ¥ 1,366.34 $ 6.28

Cash dividends*4 170.00 165.00 165.00 120.00 120.00 120.00 1.44

Equity 16,363.52 15,945.74 14,688.07 14,183.02 13,102.25 12,750.14 138.62

Ratios (%)

Operating income margin 8.8 8.2 9.6 10.9 14.1 17.7

Net income margin 5.3 4.0 4.7 5.9 6.0 9.6

Return on assets (ROA) 3.5 2.7 3.3 3.9 4.4 8.1

Return on equity (ROE) 4.6 3.6 4.7 5.7 6.2 11.3

Dividend payout ratio 33.3 52.0 32.8 18.6 15.4 9.4

Equity ratio 76.3 76.6 74.3 69.0 68.6 72.8

Notes: *1. The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥118.05 to $1, the approximate rate of exchange at March 31, 2007. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

*2. From the fiscal year ended March 31, 2007, NTV adopted the Accounting Standard for Presentation of Net Assets in the Balance Sheet (Accounting Standards Board of Japan Statement No. 5) and the Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet (Accounting Standards Board of Japan Guidance No. 8).

*3. Net income per share is computed based on the weighted average number of shares outstanding during the respective years. *4. Cash dividends per share are the amounts applicable to the respective years, including dividends to be paid after the end of year.

ANNUAL REPORT 2007


0

100

200

300

400

20072006200520042003

■Net Sales (Billions of Yen)

336.3 328.4357.6

346.6 343.7

0

30

60

90

120

20072006200520042003

■Program Production Costs (Billions of Yen, Non-Consolidated Basis)

112.4 110.2 109.6 111.5 109.5

Management’s Discussion and AnalysisNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31

Overview

Operating Environment

The Japanese economy continued along its recovery path throughout the year

ended March 31, 2007, with overall domestic advertising spending according

to research by Dentsu Inc. totaling ¥5,995.4 billion, up 0.6% from the

previous year. However, television advertising, which accounts for more than

one-third of total advertising spending, declined for the second consecutive

year, easing 1.2%, to ¥2,016.1 billion.

Net Sales

In the year ended March 31, 2007, the NTV Group posted consolidated net

sales of ¥343,652 million, a decrease of 0.9%, or ¥2,990 million. Robust

growth in television-based shopping, films, events and other non-broadcasting

revenue sources were offset by declines in the Group’s core television

broadcasting segment, with time sales falling 2.5%, or ¥3,608 million, and

spot sales dropping 4.7%, or ¥5,314 million.

Gross Profit

Gross profit increased 0.7%, or ¥739 million, during the year, to ¥104,738

million. This resulted from a falloff in depreciation of digital terrestrial

broadcasting facilities, along with reduction in cost of sales of 1.5%, or

¥3,729 million, to ¥238,914 million arising from efforts to curtail overall

expenses led by program production costs.


0

6

12

18

24

20072006200520042003

■Net Income (Billions of Yen)

20.319.4

16.8

13.7

18.3

0.0

2.5

5.0

7.5

10.0

20072006200520042003

■ROA/ROE (%)

ROA ROE

6.2

4.43.9

5.74.7

2.7

3.64.6

3.53.53.3

0

15

30

45

60

20072006200520042003

■EBITDA (Billions of Yen)

34.6

12.7

47.452.9

43.9 46.80.1

37.9

5.8

43.80

0

00

31.8

21.1

26.3

17.6

32.4

14.4

Income before income taxes and minority interests

Depreciation and amortization

Interest expense

0

15

30

45

60

20072006200520042003

■Operating Income (Billions of Yen)

47.4

35.9 34.328.6 30.3

Operating Income

Operating income grew 6.3%, or ¥1,793 million, to ¥30,344 million. This

rise was principally attributable to a decline in agency commissions reflecting

the drop in net sales, which triggered a reduction in selling, general and

administrative expenses of 1.4%, or ¥1,054 million, to ¥74,394 million.

Income Before Income Taxes and Minority Interests

During the year, income before income taxes and minority interests climbed

23.1%, or ¥6,088 million, to ¥32,413 million. Major contributors were proceeds

from insurance cancellations by certain subsidiaries and the reduction of loss

on devaluation of investment securities compared with the previous year.

Net Income

Reflecting the growth in income before income taxes and minority interests,

tax expenses swelled 17.2%, or ¥1,858 million, to ¥12,673 million. Furthermore,

profit transferred to minority interests was ¥1,408 million, down 22.2%, or

¥402 million, from the previous year.

As a result of the above, net income amounted to ¥18,332 million, a jump

of 33.8%, or ¥4,631 million.


Segment Information


In the television broadcasting segment, revenues are derived from sales

of broadcasting time to advertisers (broadcasting sales) and programs,

through the production and broadcasting of television programs across NTV’s

nationwide network. The principal subsidiaries in this segment that handle the

production and broadcasting of television programs are NTV Eizo Center

Corporation and six other companies, as well as three unconsolidated

subsidiaries and 11 associated companies.

To bolster time sales, NTV aggressively promoted such large-scale single-

episode sports programs as the 2006 FIFA World Cup™, the FIFA Club World

Cup Japan 2006 soccer events and the 83rd Hakone Ekiden, in addition to

24-Hour Television 29: Love Saves the Earth and All Japan HIGH SCHOOL

QUIZ Championship. However, the drop from the previous year’s coverage of

the Torino Winter Olympics, and a decline in professional baseball and regular

programming broadcasts resulted in a decrease in time sales of 2.5%, to

¥138,219 million.

Spot sales were negatively impacted by lower viewer ratings and reduced

spot advertising expenditures in the Kanto region. These factors led to a 4.7%

contraction in spot sales during the year, to ¥108,305 million.

Program circulation and other income fell 5.1%, to ¥21,378 million.

As a result of the above factors, sales in the television broadcasting

segment were down 3.6%, to ¥267,904 million. Despite reductions in variable

expenses, such as a falloff in the depreciation of digital terrestrial

broadcasting facilities and a decline in agency commissions, as well as

cutbacks in operating expenses arising from efforts to curtail overall expenses

led by program production costs, operating income fell 6.0%, to ¥33,843

million.

Management’s Discussion and Analysis

■ Net Sales (Billions of Yen)

2003 2004 2005 2006 2007

Television Broadcasting ¥294.5 ¥285.0 ¥289.8 ¥278.0 ¥267.9

Cultural Activities 37.6 38.9 62.1 62.5 69.4

Other 9.9 11.9 13.7 15.1 14.5

Elimination/Corporate (5.8) (7.4) (8.0) (8.9) (8.2)

Total ¥336.3 ¥328.4 ¥357.6 ¥346.6 ¥343.7

■ Operating Income (Billions of Yen)

2003 2004 2005 2006 2007

Television Broadcasting ¥44.3 ¥31.1 ¥25.3 ¥36.0 ¥33.8

Cultural Activities 2.0 3.9 8.2 5.2 8.2

Other 1.1 0.9 1.2 2.4 1.3

Elimination/Corporate (0.1) (0.0) (0.4) (15.0) (13.0)

Total ¥47.4 ¥35.9 ¥34.3 ¥28.6 ¥30.3

0

100

200

300

400

20072006200520042003

■Sales (Billions of Yen)

294.5 285.0 289.8 278.0 267.9

0

12

24

36

48

20072006200520042003


44.3

31.1

25.3

36.0 33.8


Cultural Activities

In the cultural activities segment, NTV promotes concerts and art exhibitions,

film investments and production, sports events, book publishing and mail

order businesses including television-based shopping. Nippon Television Music

Corporation plans and produces recorded music, represents music copyrights

and manages merchandising rights. VAP Inc. plans, produces, records and sells

CDs and DVDs. This segment also includes three unconsolidated subsidiaries

and three associated companies.

During the year, NTV’s sponsorship of such art gallery events as the “Our

Landscape: 400 Years of European Paintings of the State Hermitage Museum”

contributed to revenue growth.

Films recorded significant revenue advances, spurred by such major hits as

the June 2006 release of DEATH NOTE and the November 2006 follow-up

DEATH NOTE the Last name. In addition, secondary revenue from ALWAYS—

Sunset on Third Street contributed to a surge in revenue.

Media commerce business, which we aggressively expanded, increased

sales dramatically and contributed substantially to the revenue in the entire

cultural activities segment.

As a result, net sales in the cultural activities segment climbed 11.1%, to

¥69,411 million, while operating income soared 58.0%, to ¥8,193 million.

Other

In the other segment, NTV engages in commercial tenant and office building

leasing. Specifically, NTV Service Inc. engages in sales of novelty goods and

insurance sales. Nippon Television Work 24 Corporation provides building

management services. Nippon Television Football Club Co., Ltd., manages a

professional soccer team. Forecast Communications Inc. offers Internet-related

services. In addition, this segment includes five unconsolidated subsidiaries

and five associated companies that engage in broadband activities, the

manufacture and sale of art exhibit-related merchandise, recording studio

management, the provision of district heating and cooling systems, overseas

broadcasting market research, radio broadcasting and information systems

configuration support.

During the year, steady orders gained for “1-SEG” broadcasting content

creation and Web production by Forecast Communications Inc. were offset by

waning match admissions revenue and advertising revenues from Nippon

Television Football Club. Accordingly, sales by the other segment eased 3.6%,

to ¥14,536 million, and operating income fell 43.9%, to ¥1,323 million.

0

20

40

60

80

20072006200520042003


37.6 38.9

62.1 62.569.4

0

2.5

5.0

7.5

10.0

20072006200520042003


2.0

3.9

8.2

5.2

8.2

0

4

8

12

16

20072006200520042003


9.9

11.9

13.715.1 14.5

0

0.7

1.4

2.1

2.8

20072006200520042003


1.10.9

1.2

2.4

1.3


Liquidity and Financial Resources

Financing and Capital Expenditure Policy

In the context of its ongoing content investment, the NTV Group utilizes

retained earnings and determines the optimal method of funds procurement

based on a variety of factors, including future operating conditions, financial

market trends and the impact on the Group’s corporate value.

In specific terms, estimates for capital expenditures over the next seven-

year period are determined in line with forecast profits and cash flows. Group

companies formulate their own capital expenditure plans, but NTV makes

adjustments to ensure there is no overlap between plans.

In the year ending March 31, 2008, the NTV Group is budgeting capital

expenditures of ¥6,449 million, funded primarily through retained earnings.

Financial Position

□ Assets

As of March 31, 2007, total current assets were ¥193,544 million, an

increase of ¥23,238 million from a year earlier. This rise was due primarily

to an increase in trade notes and accounts receivable accompanying the

expansion of film and media commerce businesses during the second half.

Total investments and other assets dropped ¥5,091 million, to ¥138,420

million, as a result of reduction in investment securities reflecting a

decrease in market value and advancing depreciation.

Accordingly, total assets at year-end were ¥529,265 million, an increase

of ¥9,313 million from a year earlier.

□ Liabilities

As of March 31, 2007, total current liabilities stood at ¥82,070 million, a rise

of ¥8,010 million, due primarily to an increase in income taxes payable,

reflecting growth in profits.

Total non-current liabilities eased ¥5,702 million, to ¥35,200 million,

owing to a decrease in deferred tax liabilities reflecting the drop off in

market prices of investment securities.

□ Equity

From the current year we have applied the “Accounting Standard for

Presentation of Net Assets in the Balance Sheet (Accounting Standards


0

15

30

45

60

20072006200520042003

■Capital Expenditures/Depreciation (Billions of Yen)

30.0

5.9

49.8

12.79.2

21.1

6.3

17.6

6.0

14.4

Capital Expenditures Depreciation

0

100

200

300

400

20072006200520042003

■Liquidity Ratio (%)

184 207230 236

160

0

150

300

450

600

20072006200520042003

■Total Assets (Billions of Yen)

476.6513.4 493.6

520.0 529.3


Board Statement No. 5)” and “Implementation Guidance for Accounting

Standard for Presentation of Net Assets in the Balance Sheet (Financial

Accounting Standards Implementation Guidance No. 8).”

A reduction in unrealized gain on available-for-sale securities reflecting

the downtrend in market value of investment securities was offset by an

increase in retained earnings accompanying capitalization of net income.

Accordingly, total equity for the year were ¥411,995 million, which was

¥7,005 million higher than the total of shareholders’ equity and minority

interests at the end of the previous year.

Cash Flows

As of March 31, 2007, cash and cash equivalents were ¥61,524 million, up

¥2,155 million year on year.

□ Net Cash Provided by Operating Activities

Net cash provided by operating activities totaled ¥31,458 million, compared

with ¥32,683 million from a year earlier. This was primarily attributable to

negative impact by an increase in notes and accounts receivable, despite an

increase in income before income taxes and minority interests and a rise in

cash arising from reduction of program rights.

□ Net Cash Used in Investing Activities

Net cash used in investing activities totaled ¥24,596 million, down from

¥24,358 million in the previous fiscal year. The main uses of cash were

purchases of marketable and investment securities and expenditures

relating to investments in equity of subsidiaries and affiliates.

□ Net Cash Used in Financing Activities

Net cash used in financing activities was ¥4,714 million, compared with

¥15,921 million from a year earlier. Dividends paid was the primary

contributor to this reduction.

0

25

50

75

100

20072006200520042003

■Equity Ratio (%)

68.6 74.3 76.6 76.369.0

0

25

50

75

100

20072006200520042003

■Cash and Cash Equivalents (Billions of Yen)

81.977.9

66.959.4 61.5

■ Cash Flows (Billions of Yen)

2003 2004 2005 2006 2007

Net cash provided by operating activities ¥ 26.0 ¥ 30.5 ¥ 49.3 ¥ 32.7 ¥ 31.5

Net cash used in investing activities (37.4) (41.6) (23.1) (24.4) (24.6)

Net cash (used in) provided by financing activities 22.5 7.1 (37.3) (15.9) (4.7)

Net increase (decrease) in cash and cash equivalents 11.0 (4.0) (11.1) (7.5) 2.2

Cash and cash equivalents, end of year ¥ 81.9 ¥ 77.9 ¥ 66.9 ¥ 59.4 ¥ 61.5


Future Management Policy

In July 1952, NTV became the first company in Japan to be authorized for television broadcasting, and NTV went on air in August 1953. Since then, we have implemented many technological innovations, such as the first commercial color and sound multichannel broadcasting, thereby growing a huge media sector. The world of broadcasting has now entered an unprecedented period of change through the rapid development of digital technology, featuring the fusion of broadcasting and telecommunications, as well as multimedia and multichannel content. As part of these changes, the “1-SEG” service launched in April 2006. We plan to convert to full digital broadcasting in advance of termination of terrestrial analog broadcasting in Japan in 2011. We are facing a radical transition from a television-only age to an epoch where television is merely another media option. Although improvements in broadcasting revenue had previously been linked to economic conditions, that is no longer the case. Recovery in the Japanese economy does not necessarily contribute to the commercial television industry, which is surrounded by an independently changing environment. To address such changes, the Company announced the Medium-Term Management Plan for FY2006–2008 in May 2006 to enhance corporate value. In May 2007, pursuing further growth, we formulated the NTV Group New Medium-Term Management Plan for FY2007–2009 to aggressively address technological development, the speed of which is being further accelerated by digitalization, and various changes in the environment surrounding broadcasters. In the multimedia and multichannel generation brought about by digitalization, the number of opportunities and methods for viewers to access video media is incomparably large compared to the analog generation. NTV’s strongest corporate value—content creation capability—has become its competitive edge. Swiftly capitalizing on this business opportunity, NTV is developing a multicontact-point strategy that enables the viewing of television programs anytime and anywhere. The pillar of this strategy is the “1-SEG” service and the NTV2 VoD business to distribute content via the Internet. However, revenue from the mainstay broadcasting business for terrestrial broadcasting should remain the main pillar of our revenue base. Following the October 2006 startup of NEWS ZERO, a news information program, we rescheduled more than 33% of our prime-time lineup from April 2007. To recapture the highest overall viewer rating position, we will enhance our broadcasting timetable. We will also endeavor to bolster the development of original NTV programs. The Company regards its mainstay live coverage of baseball games by the Yomiuri Giants (a professional baseball team) as a preferred program for its multimedia strategy, having begun its airing and delivery via terrestrial waves, BS, CS and the Internet. We will also promote dynamic business development including the “1-SEG” service to enable reception in taxis, buses and trains. As a Group strategy, we reorganized content creation subsidiaries in April 2007, thereby aiming to reinforce and effectively exploit our content creation capability. Our groupwide efforts to increase earnings include the business extension of Group companies such as VAP Inc., which enjoys favorable sales of DVDs, and Forecast Communications Inc., which has an important role in growing the NTV2 VoD business. The NTV Group intends to continue optimizing the distribution of management resources focusing mainly on content creation capacity, its greatest strength, and aggressive investments as it deems necessary, thereby aiming at the Total Success of the Four No. 1s: No. 1 in broadcasting sales, No. 1 in growth in non-broadcasting revenue sources, No. 1 in content delivery and No. 1 in delivering customer satisfaction.



Risk Information

Legal Regulations for Television Broadcasters The television broadcasting segment, which forms the core of the NTV Group’s operations, is regulated by Japan’s Broadcast Law and Radio Law. The objective of the latter is to promote robust development of broadcasting by stipulating freedom of program editing and establishment of broadcast program deliberative bodies. Furthermore, the Radio Law also aims to enhance public welfare by ensuring the fair and efficient usage of the airwaves. Article 4 of the Radio Law stipulates that parties seeking to open radio stations for the transmission of radio waves must receive a license from the Minister of Internal Affairs and Communications. Article 13(2) of the Radio Law and Article 7(6) of the Order of the Enforcement of the Radio Law specify that the validation period of such a license is five years. On July 31, 1952, the Company was the first in Japan to be authorized for television broadcasting. We have subsequently continued to renew our status as a licensed broadcasting company. Under the authority to the Minister of Internal Affairs and Communications in the event of prescribed circumstances, the Radio Law provides stipulations for discontinuance of radio transmissions (Article 72) and revocation of status as a licensed broadcasting company (Article 75 and Article 76). Continued television broadcasting is the linchpin for the NTV Group’s future existence, so the Group is ever-conscious of and vigilant toward the emergence of such circumstances in the fulfillment of its social mission of broadcasting. However, if the Company’s status as a licensed broadcasting company were revoked under the Radio Law, the NTV Group’s business performance and financial position could be seriously affected. Further, current debates concerning broadcasting and communications may cause legal revisions and other changes that coulud ultimately impact the operating performance of the NTV Group.

Handling of Shares Purchased by Foreign EntitiesNTV’s status as a licensed broadcasting company under the Radio Law will be revoked if the voting rights held by foreign entities (defined as (1) an individual without Japanese citizenship, (2) a foreign government or its representatives, (3) a foreign juridical person or organization or (4) a juridical person or organization the ratio of voting rights of which to be held directly by the entity described in items (1) to (3)) is higher than the ratio specified by the Ministry of Internal Affairs and Communications Ordinance) are 20% or more of the Company’s shares with voting rights. In this situation, the Company may refuse to describe or record such foreign entities on the shareholders’ register (including a substantial shareholder) in accordance with the provisions of the Broadcast Law Article 52(8)(i) and 52(8)(ii). Furthermore, based on Article 52(8)(iii) of the Broadcast Law, the Company may also restrict exercise of voting rights. Accordingly, in the case that foreign entities purchase Company shares, the possibility exists that the party that purchased the shares may not be able to carry out transfer of shares or may be restricted in the exercise of voting rights.


Consolidated Balance SheetsNippon Television Network Corporation and Consolidated SubsidiariesMarch 31, 2007 and 2006

Millions of Yen

Thousands ofU.S. Dollars

(Note 1)

ASSETS 2007 2006 2007

Current Assets:

Cash and cash equivalents ¥ 61,524 ¥ 59,369 $ 521,169

Marketable securities (Note 3) 4,526 2,018 38,340

Short-term investments (Note 4) 9,300 78,780

Receivables:

Trade notes 4,969 4,753 42,092

Trade accounts 83,647 75,039 708,573

Other 3,002 2,424 25,430

Allowance for doubtful accounts (80) (76) (678)

Program rights 13,210 16,157 111,902

Deferred tax assets (Note 9) 4,799 4,547 40,653

Prepaid expenses and other 9,345 6,773 79,161

Allowance for doubtful accounts (698) (698) (5,913)

Total current assets 193,544 170,306 1,639,509

Property and Equipment—At cost (Notes 5 and 10):

Land 114,850 114,858 972,893

Buildings and structures 89,325 89,428 756,671

Machinery, vehicles and equipment 95,189 95,272 806,344

Construction in progress 335 424 2,838

Total 299,699 299,982 2,538,746

Accumulated depreciation (102,398) (93,847) (867,412)

Net property and equipment 197,301 206,135 1,671,334

Investments and Other Assets:

Investment securities (Note 3) 90,750 102,033 768,742

Investments in unconsolidated subsidiaries and associated companies 21,143 19,944 179,102

Long-term deposits 8,100 7,100 68,615

Deferred tax assets (Note 9) 1,039 747 8,801

Other assets 17,502 13,803 148,259

Allowance for doubtful accounts (114) (116) (965)

Total investments and other assets 138,420 143,511 1,172,554

Total ¥529,265 ¥519,952 $4,483,397

See notes to consolidated fi nancial statements.


Millions of Yen


(Note 1)

LIABILITIES AND EQUITY 2007 2006 2007

Current Liabilities:

Short-term bank loans (Note 6) ¥ 104 $ 881

Payables:

Trade notes 1,991 ¥ 2,221 16,866

Trade accounts 56,702 54,249 480,322

Other 6,667 5,980 56,476

Income taxes payable 8,520 5,119 72,173

Accrued expenses and other 8,086 6,491 68,496

Total current liabilities 82,070 74,060 695,214

Non-Current Liabilities:

Liabilities for retirement benefi ts (Note 7) 6,430 5,542 54,469

Guarantee deposits received (Note 5) 20,156 20,143 170,741

Deferred tax liabilities (Note 9) 7,760 12,756 65,735

Other 854 2,461 7,234

Total non-current liabilities 35,200 40,902 298,179

Minority Interests 6,972

Commitments and Contingent Liabilities (Notes 10 and 11)

Equity (Notes 8 and 12):

Common stock, no par value—authorized,

100,000,000 shares in 2007 and 50,000,000 shares in 2006; issued, 25,364,548 shares in 2007 and 2006

18,576 18,576 157,357

Capital surplus 17,928 17,928 151,868

Retained earnings 363,526 350,025 3,079,424

Unrealized gain on available-for-sale securities 14,028 21,085 118,831

Foreign currency translation adjustments 12 (56) 102

Treasury stock—at cost, 664,852 shares in 2007 and 409,450 shares in 2006 (9,896) (9,540) (83,829)

Total 404,174 398,018 3,423,753

Minority interests 7,821 66,251

Total equity 411,995 398,018 3,490,004

Total ¥529,265 ¥519,952 $4,483,397


Consolidated Statements of IncomeNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31, 2007 and 2006

Millions of Yen


(Note 1)

2007 2006 2007

Net Sales ¥343,652 ¥346,642 $2,911,071

Cost of Sales 238,914 242,643 2,023,837

Gross profi t 104,738 103,999 887,234

Selling, General and Administrative Expenses (Note 10) 74,394 75,448 630,191

Operating income 30,344 28,551 257,043

Other Income (Expenses):

Interest and dividend income 1,328 1,049 11,249

Interest expense (1) (11) (8)

Gain on sales of property and equipment 58 1 491

Gain on termination of partial retirement benefi t plan 686

Loss on devaluation of investment securities (1,417) (3,799) (12,003)

Other—net 2,101 (151) 17,798

Other income (expenses)—net 2,069 (2,225) 17,527

Income before Income Taxes and Minority Interests 32,413 26,326 274,570

Income Taxes (Note 9):

Current 13,184 10,430 111,681

Deferred (511) 385 (4,328)

Total income taxes 12,673 10,815 107,353

Minority Interests in Net Income (1,408) (1,810) (11,927)

Net Income ¥ 18,332 ¥ 13,701 $ 155,290

Yen U.S. Dollars

Per Share of Common Stock (Note 2.o):

Net income ¥741.60 ¥545.40 $6.28

Cash dividends applicable to the year 170.00 165.00 1.44



Consolidated Statements of Changes in EquityNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31, 2007 and 2006

Thousands Millions of Yen

Issued Number of Shares of

Common StockCommon

StockCapital Surplus

Retained Earnings

Unrealized Gain on

Available-for-sale Securities

Foreign Currency

Translation Adjustments

Treasury Stock Total

Minority Interests

Total Equity

Balance, April 1, 2005 25,365 ¥18,576 ¥17,928 ¥330,171 ¥ 9,666 ¥(159) ¥(9,536) ¥366,646 ¥366,646

Net income 13,701 13,701 13,701

Cash dividends, ¥140 per share (3,494) (3,494) (3,494)

Bonuses to directors (100) (100) (100)

Interim cash dividends, ¥50 per share (1,248) (1,248) (1,248)

Adjustment of retained earnings from the inclusion of associated companies accounted for using the equity method 10,995 10,995 10,995

Net increase in unrealized gain on available-for-sale securities 11,419 11,419 11,419

Foreign currency translation adjustments 103 103 103

Increase in treasury stock—net (4) (4) (4)

Balance, March 31, 2006 25,365 18,576 17,928 350,025 21,085 (56) (9,540) 398,018 398,018

Reclassifi ed balance as of March 31, 2006 (Note 2.h) ¥6,972 6,972

Net income 18,332 18,332 18,332

Cash dividends, ¥115 per share (2,869) (2,869) (2,869)


Interim cash dividends, ¥75 per share (1,872) (1,872) (1,872)

Increase in treasury stock—net (356) (356) (356)

Net change in the year (7,057) 68 (6,989) 849 (6,140)

Balance, March 31, 2007 25,365 ¥18,576 ¥17,928 ¥363,526 ¥14,028 ¥ 12 ¥(9,896) ¥404,174 ¥7,821 ¥411,995

Thousands of U.S. Dollars (Note 1)

Common Stock

Capital Surplus

Retained Earnings

Unrealized Gain on

Available-for-sale Securities

Foreign Currency

Translation Adjustments

Treasury Stock Total

Minority Interests

Total Equity

Balance, March 31, 2006 $157,357 $151,868 $2,965,057 $178,611 $(474) $(80,813) $3,371,606 $3,371,606

Reclassifi ed balance as of March 31, 2006 (Note 2.h) $59,060 59,060

Net income 155,290 155,290 155,290

Cash dividends, $0.97 per share (24,307) (24,307) (24,307)


Interim cash dividends, $0.64 per share (15,854) (15,854) (15,854)

Increase in treasury stock—net (3,016) (3,016) (3,016)

Net change in the year (59,780) 576 (59,204) 7,191 (52,013)

Balance, March 31, 2007 $157,357 $151,868 $3,079,424 $118,831 $ 102 $(83,829) $3,423,753 $66,251 $3,490,004



Consolidated Statements of Cash FlowsNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31, 2007 and 2006

Millions of Yen

Thousands of U.S. Dollars

(Note 1)

2007 2006 2007

Operating Activities:

Income before income taxes and minority interests ¥32,413 ¥26,326 $274,570

Adjustments for:

Income taxes—paid (9,783) (11,951) (82,871)

Depreciation and amortization 14,361 17,561 121,652

Increase (decrease) of liabilities for retirement benefi ts 888 (4,896) 7,522

Gain on sales of property and equipment (58) (1) (491)

Loss on devaluation of investment securities 1,417 3,799 12,003

Equity in (gains) losses of unconsolidated subsidiaries and associated companies (715) 183 (6,057)

Changes in operating assets and liabilities:

(Increase) decrease in trade notes and accounts receivables (8,824) 3,942 (74,748)

Decrease (increase) in program rights 2,947 (6,627) 24,964

Increase in trade notes and accounts payables 2,223 3,965 18,831

Other—net (3,411) 382 (28,895)

Total adjustments (955) 6,357 (8,090)

Net cash provided by operating activities 31,458 32,683 266,480

Investing Activities:

Increase in long-term deposits (2,700) (7,000) (22,872)

Purchases of marketable securities (10,595) (89,750)

Proceeds from sales of marketable securities 2,030 2,061 17,196

Purchases of property and equipment (4,894) (6,314) (41,457)

Proceeds from sales of property and equipment 138 260 1,169

Purchases of intangible assets (1,050) (995) (8,895)

Purchases of investment securities (5,605) (13,890) (47,480)

Proceeds from sales of investment securities 273 99 2,313

Other—net (2,193) 1,421 (18,576)

Net cash used in investing activities (24,596) (24,358) (208,352)

Financing Activities:

Change in short-term bank loans—net 104 (11,500) 881

Dividends paid (4,493) (4,395) (38,060)

Purchases of treasury stock (6) (4) (51)

Other—net (319) (22) (2,702)

Net cash used in fi nancing activities (4,714) (15,921) (39,932)

Foreign Currency Translation Adjustments on Cash and Cash Equivalents 7 87 59

Net Increase (Decrease) in Cash and Cash Equivalents 2,155 (7,509) 18,255

Cash and Cash Equivalents, Beginning of Year 59,369 66,878 502,914

Cash and Cash Equivalents, End of Year ¥61,524 ¥59,369 $521,169



1. Basis of Presenting Consolidated Financial Statements

The accompanying consolidated fi nancial statements have been prepared in accordance with the provisions set

forth in the Japanese Securities and Exchange Law and its related accounting regulations, and in conformity with

accounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to

application and disclosure requirements of International Financial Reporting Standards.

On December 27, 2005, the Accounting Standards Board of Japan (the “ASBJ”) published a new accounting

standard for the statement of changes in equity, which is effective for fi scal years ending on or after May 1, 2006.

The consolidated statement of shareholders’ equity, which was previously voluntarily prepared in line with the

international accounting practices, is now required under Japanese GAAP and has been renamed ”the consolidated

statement of changes in equity” in the current fi scal year.

In preparing these consolidated fi nancial statements, certain reclassifi cations and rearrangements have been made

to the consolidated fi nancial statements issued domestically in order to present them in a form which is more familiar

to readers outside Japan. In addition, certain reclassifi cations have been made in the 2006 fi nancial statements to

conform to the classifi cations used in 2007.

The consolidated fi nancial statements are stated in Japanese yen, the currency of the country in which Nippon

Television Network Corporation (the ”Company”) is incorporated and operates. The translations of Japanese yen

amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been

made at the rate of ¥118.05 to $1, the approximate rate of exchange at March 31, 2007. Such translations should not

be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any

other rate.

2. Summary of Signifi cant Accounting Policies

a. Consolidation—The consolidated fi nancial statements as of March 31, 2007 include the accounts of the Company

and its 13 (12 in 2006) signifi cant subsidiaries (together, the ”Group”).

Under the control or infl uence concept, those companies in which the Company, directly or indirectly, is able to

exercise control over operations are fully consolidated, and those companies over which the Group has the ability to

exercise signifi cant infl uence are accounted for by the equity method.

Investments in 11 (6 in 2006) unconsolidated subsidiaries and 19 (18 in 2006) associated companies are accounted

for by the equity method.

Goodwill is amortized over 20 years on a straight-line basis.

All signifi cant intercompany balances and transactions have been eliminated in consolidation. All material unrealized

profi t included in assets resulting from transactions within the Group is eliminated.

b. Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash and that are

exposed to insignifi cant risk of changes in value.

Cash equivalents include time deposits and mutual funds investing in bonds that represent short-term investments,

all of which mature or become due within three months of the date of acquisition.

c. Program Rights—Costs incurred in connection with the production of programming and the purchase of rights to

programs are capitalized and amortized as the respective programs are broadcasted. Program rights are carried at

cost, determined by the specifi c identifi cation method.

d. Marketable and Investment Securities—Marketable and investment securities are classifi ed as trading securities,

held-to-maturity debt securities or available-for-sale securities depending on management's intent. The Group

classifi es securities as held-to-maturity debt securities and available-for-sale securities.

Held-to-maturity debt securities are stated at amortized cost.

Notes to Consolidated Financial StatementsNippon Television Network Corporation and Consolidated SubsidiariesYears Ended March 31, 2007 and 2006


Marketable available-for-sale securities are stated at fair value with unrealized gains and losses, net of applicable

taxes, reported in a separate component of shareholders’ equity. The cost of securities sold is determined based on

the moving-average method.

Non-marketable available-for-sale securities are stated at cost determined by the moving-average method. For

other than temporary declines in fair value, non-marketable available-for-sale securities are reduced to net realizable

value by a charge to income.

e. Property and Equipment—Property and equipment are stated at cost. Depreciation is computed by the declining-

balance method over the estimated useful lives of the assets, while the straight-line method is applied to buildings

acquired after April 1, 2000. The range of useful lives is from 3 to 50 years for buildings and structures and from 2 to

20 years for machinery, vehicles and equipment.

f. Long-lived Assets—In August 2002, the Business Accounting Council issued a Statement of Opinion, “Accounting

for Impairment of Fixed Assets,” and in October 2003 the ASBJ issued ASBJ Guidance No. 6, ”Guidance for Accounting

Standard for Impairment of Fixed Assets.” These new pronouncements are effective for fi scal years beginning on

or after April 1, 2005 with early adoption permitted for fi scal years ending on or after March 31, 2004. The Group

adopted the new accounting standard for impairment of fi xed assets as of April 1, 2005.

The Group reviews its long-lived assets for impairment whenever events or changes in circumstance indicate the

carrying amount of an asset or asset group may not be recoverable. An impairment loss would be recognized if the

carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash fl ows expected to result

from the continued use and eventual disposition of the asset or asset group. The impairment loss would be measured

as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of

the discounted cash fl ows from the continued use and eventual disposition of the asset or the net selling price at

disposition.

g. Retirement and Pension Plans—The Company has an unfunded lump-sum retirement benefi ts plan, a defi ned

contribution pension plan and a prepaid retirement plan. Subsidiaries have an unfunded lump-sum retirement

benefi ts plan and a non-contributory funded pension plan.

Effective April 1, 2000, the Group adopted a new accounting standard for employees’ retirement benefi ts and

accounted for the liability for retirement benefi ts based on projected benefi t obligations and plan assets at the

balance sheet date.

The Company’s transitional assets, determined at the beginning of the year, are being amortized over 10 years.

The annual provision for retirement benefi ts for directors and corporate auditors is calculated to state the liability at

the amount that would be required if all directors and corporate auditors retired at each balance sheet date.

h. Presentation of Equity—On December 9, 2005, the ASBJ published a new accounting standard for presentation of

equity. Under this accounting standard, certain items which were previously presented as liabilities are now presented

as components of equity. Such items include stock acquisition rights, minority interests, and any deferred gain or loss

on derivatives accounted for under hedge accounting. This standard is effective for fi scal years ending on or after

May 1, 2006. The consolidated balance sheet as of March 31, 2007 is presented in line with this new accounting

standard.

i. Leases—All leases are accounted for as operating leases. Under Japanese accounting standards for leases, fi nance

leases that deem to transfer ownership of the leased property to the lessee are to be capitalized, while other fi nance

leases are permitted to be accounted for as operating lease transactions if certain “as if capitalized” information is

disclosed in the notes to the consolidated fi nancial statements.


j. Bonuses to Directors and Corporate Auditors—Prior to the fi scal year ended March 31, 2005, bonuses to

directors and corporate auditors were accounted for as a reduction of retained earnings in the fi scal year following

approval at the general shareholders meeting. The ASBJ issued ASBJ Practical Issues Task Force (”PITF”) No. 13,

“Accounting Treatment for Bonuses to Directors and Corporate Auditors,” which encouraged companies to record

bonuses to directors and corporate auditors on the accrual basis with a related charge to income, but still permitted

the direct reduction of such bonuses from retained earnings after approval of the appropriation of retained earnings.

The ASBJ replaced the above accounting pronouncement by issuing a new accounting standard for bonuses to

directors and corporate auditors on November 29, 2005. Under the new accounting standard, bonuses to directors

and corporate auditors must be expensed and are no longer allowed to be directly charged to retained earnings. This

accounting standard is effective for fi scal years ending on or after May 1, 2006. The companies must accrue bonuses

to directors and corporate auditors at the year end to which such bonuses are attributable.

The Company adopted the new accounting standard for bonuses to directors and corporate auditors from the year

ended March 31, 2007. The effect of adoption of this accounting standard was to decrease income before income

taxes and minority interests for the year ended March 31, 2007 by ¥50 million ($424 thousand).

k. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidated

statements of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for

the expected future tax consequences of temporary differences between the carrying amounts and the tax bases

of assets and liabilities. Deferred taxes are measured by applying currently enacted tax laws to the temporary

differences.

l. Appropriations of Retained Earnings—Appropriations of retained earnings at each year end are refl ected in the

fi nancial statements for the following year upon shareholders’ approval.

m. Foreign Currency Translations—Receivables and payables denominated in foreign currencies are translated into

Japanese yen at the exchange rates at the balance sheet date.

Foreign exchange gains and losses are recognized during the fi scal year in which they occur.

n. Foreign Currency Financial Statements—The balance sheet and revenue and expense accounts of the consolidated

overseas subsidiaries are translated into yen at the current exchange rates as of the balance sheet date except for

equity, which is translated at the historical exchange rate.

Differences arising from such translation were shown as ”Foreign currency translation adjustments” in a separate

component of equity.

o. Per Share Information—Basic net income per share is computed by dividing net income available to common

shareholders by the weighted-average number of common shares outstanding for the period.

Diluted net income per share is not disclosed because it is anti-dilutive.

Cash dividends per share presented in the accompanying consolidated statements of income are dividends

applicable to the respective years including dividends to be paid after the end of the year.

p. New Accounting Pronouncements

Measurement of Inventories—Under Japanese GAAP, inventories are currently measured either by the cost

method, or at the lower of cost or market. On July 5, 2006, the ASBJ issued ASBJ Statement No. 9, “Accounting

Standard for Measurement of Inventories,” which is effective for fi scal years beginning on or after April 1, 2008

with early adoption permitted. This standard requires that inventories held for sale in the ordinary course of business

be measured at the lower of cost or net selling value, which is defi ned as the selling price less additional estimated


manufacturing costs and estimated direct selling expenses. The replacement cost may be used in place of the net

selling value, if appropriate. The standard also requires that inventories held for trading purposes be measured at the

market price.

Lease Accounting—On March 30, 2007, the ASBJ issued ASBJ Statement No. 13, “Accounting Standard for Lease

Transactions,” which revised the existing accounting standard for lease transactions issued on June 17, 1993.

Under the existing accounting standard, fi nance leases that deem to transfer ownership of the leased property to

the lessee are to be capitalized, however, other fi nance leases are permitted to be accounted for as operating lease

transactions if certain “as if capitalized” information is disclosed in the note to the lessee’s fi nancial statements.

The revised accounting standard requires that all fi nance lease transactions should be capitalized. The revised

accounting standard for lease transactions is effective for fi scal years beginning on or after April 1, 2008 with early

adoption permitted for fi scal years beginning on or after April 1, 2007.

Unifi cation of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial

Statements—Under Japanese GAAP, a company currently can use the fi nancial statements of foreign subsidiaries

which are prepared in accordance with generally accepted accounting principles in their respective jurisdictions for

its consolidation process unless they are clearly unreasonable. On May 17, 2006, the ASBJ issued ASBJ PITF No. 18,

”Practical Solution on Unifi cation of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial

Statements.” The new task force prescribes: (1) the accounting policies and procedures applied to a parent company

and its subsidiaries for similar transactions and events under similar circumstances should in principle be unifi ed for

the preparation of the consolidated fi nancial statements, (2) fi nancial statements prepared by foreign subsidiaries in

accordance with either International Financial Reporting Standards or the generally accepted accounting principles in

the United States tentatively may be used for the consolidation process, (3) however, the following items should be

adjusted in the consolidation process so that net income is accounted for in accordance with Japanese GAAP unless

they are not material;

(1) Amortization of goodwill

(2) Actuarial gains and losses of defi ned benefi t plans recognized outside profi t or loss

(3) Capitalization of intangible assets arising from development phases

(4) Fair value measurement of investment properties, and the revaluation model for property, plant and equipment,

and intangible assets

(5) Retrospective application when accounting policies are changed

(6) Accounting for net income attributable to a minority interest

The new task force is effective for fi scal years beginning on or after April 1, 2008 with early adoption permitted.

3. Marketable and Investment Securities

Marketable and investment securities as of March 31, 2007 and 2006 consisted of the following:

Millions of YenThousands of U.S. Dollars

2007 2006 2007

Marketable securities—Government and corporate bonds ¥ 4,526 ¥ 2,018 $ 38,340Investment securities: Equity securities ¥67,992 ¥ 77,835 $575,960 Government and corporate bonds 14,063 13,548 119,127 Trust fund investments and others 8,695 10,650 73,655Total ¥90,750 ¥102,033 $768,742


The carrying amounts and aggregate fair value of marketable securities and investment securities at March 31,

2007 and 2006 were as follows:

Millions of Yen

March 31, 2007 CostUnrealized

GainsUnrealized

Losses Fair Value

Securities classifi ed as: Available-for-sale: Equity securities ¥36,621 ¥23,518 ¥2,543 ¥57,596 Government and corporate bonds 13,065 14 251 12,828 Trust fund investments and others 2,203 2,477 4,680 Held-to-maturity 5,761 8 5,753

Millions of Yen


GainsUnrealized

Losses Fair Value

Securities classifi ed as: Available-for-sale: Equity securities ¥35,615 ¥32,013 ¥ 7 ¥67,621 Government and corporate bonds 10,100 23 326 9,797 Trust fund investments and others 2,256 2,718 3 4,971 Held-to-maturity 5,769 26 5,743

Thousands of U.S. Dollars


GainsUnrealized

Losses Fair Value

Securities classifi ed as: Available-for-sale: Equity securities $310,216 $199,221 $21,542 $487,895 Government and corporate bonds 110,673 119 2,126 108,666 Trust fund investments and others 18,661 20,983 39,644 Held-to-maturity 48,801 68 48,733

Available-for-sale securities whose fair value is not readily determinable as of March 31, 2007 and 2006 were as

follows:

Carrying Amount


2007 2006 2007

Available-for-sale—Non-marketable securities ¥14,511 ¥15,893 $122,922

Proceeds from sales of available-for-sale securities for the years ended March 31, 2007 and 2006 were ¥273 million

($2,313 thousand) and ¥99 million, respectively. Gross realized gains and losses on these sales, computed on the

moving average cost basis, were ¥76 million ($644 thousand) and nil, respectively, for the year ended March 31, 2007

and ¥34 million and ¥3 million, respectively, for the year ended March 31, 2006.

The carrying values of debt securities by contractual maturities for securities classifi ed as available-for-sale at March

31, 2007 are as follows:

Available for Sale Millions of YenThousands of U.S. Dollars

Due in one year or less ¥ 4,615 $ 39,094Due after one year through fi ve years 6,411 54,307Due after fi ve years through ten years 7,643 64,744Due in ten years and after 5,371 45,498Total ¥24,040 $203,643


4. Short-Term Investments

Short-term investments as of March 31, 2007 and 2006 consisted of the following:


2007 2006 2007

Time deposit ¥1,700 $14,401Certifi cate of deposit 7,600 64,379Total ¥9,300 $78,780

5. Collateralized Property

At March 31, 2007, land of ¥101,031 million ($855,832 thousand) was pledged as collateral for guarantee deposits

received of ¥19,000 million ($160,949 thousand).

6. Short-Term Bank Loans

Short-term bank loans outstanding were generally represented by bank overdraft arrangements. The annual interest

rate ranged 1.88% on average during the year.

7. Retirement and Pension Benefi ts Plan

The Company and certain subsidiaries have severance payment plans for employees, directors and corporate auditors.

Retirement benefi ts for employees are determined on the basis of length of service, basic rate of pay at the time

of termination and certain other factors. If the termination is involuntary, the employee is usually entitled to greater

payment than those in the case of voluntary termination.

The liability for employees’ retirement benefi ts at March 31, 2007 and 2006 consisted of the following:


2007 2006 2007

Projected benefi t obligation ¥5,383 ¥5,219 $45,600Fair value of plan assets (297) (992) (2,516)Unrecognized net transitional assets 193 257 1,635Prepayment of pension cost 1 39 8Net liability ¥5,280 ¥4,523 $44,727

The components of net periodic benefi t costs for the years ended March 31, 2007 and 2006 are as follows:


2007 2006 2007

Service cost ¥1,012 ¥545 $ 8,573Interest cost 53 79 449Recognized actuarial loss 20 (218) 169Amortization of net transitional assets (64) (101) (542)Defi ned contribution pension plan premium cost 620 565 5,252 Net periodic benefi t costs 1,641 870 13,901Gain on termination of partial retirement benefi t plan (686)Loss on revision of retirement benefi t plan 374 3,168Total ¥2,015 ¥184 $17,069


Assumptions used for the years ended March 31, 2007 and 2006 are set forth as follows:

2007 2006

Discount rate 2.3% 2.3%Recognition period of actuarial gain/loss 1 year 1 yearAmortization period of net transitional asset 10 years 10 years

Retirement benefi ts for directors and corporate auditors are paid subject to approval of the shareholders in

accordance with a new corporate law of Japan (the ”Corporate Law”). Retirement benefi ts as of March 31, 2007

and 2006 included those for directors and corporate auditors in the amount of ¥1,150 million ($9,742 thousand) and

¥1,019 million, respectively.

8. Equity

On and after May 1, 2006, Japanese companies are subject to the Corporate Law, which reformed and replaced the

Commercial Code of Japan with various revisions that are, for the most part, applicable to events or transactions

which occur on or after May 1, 2006 and for the fi scal years ending on or after May 1, 2006. The signifi cant changes

in the Corporate Law that affect fi nancial and accounting matters are summarized below:

a. Dividends

Under the Corporate Law, companies can pay dividends at any time during the fi scal year in addition to the year-end

dividend upon resolution at the shareholders meeting. For companies that meet certain criteria such as; (1) having the

Board of Directors, (2) having independent auditors, (3) having the Board of Corporate Auditors, and (4) the term of

service of the directors is prescribed as one year rather than two years of normal term by its articles of incorporation,

the Board of Directors may declare dividends (except for dividends in kind) at any time during the fi scal year if the

company has prescribed so in its articles of incorporation.

The Corporate Law permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to a

certain limitation and additional requirements.

Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles

of incorporation of the company so stipulate. The Corporate Law provides certain limitations on the amounts available

for dividends or the purchase of treasury stock. The limitation is defi ned as the amount available for distribution to

the shareholders, but the amount of net assets after dividends must be maintained at no less than ¥3 million.

b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus

The Corporate Law requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a

component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the

equity account charged upon the payment of such dividends until the total of aggregate amount of legal reserve and

additional paid-in capital equals 25% of the common stock. Under the Corporate Law, the total amount of additional

paid-in capital and legal reserve may be reversed without limitation. The Corporate Law also provides that common

stock, legal reserve, additional paid-in capital, other capital surplus and retained earnings can be transferred among

the accounts under certain conditions upon resolution of the shareholders.

c. Treasury Stock and Treasury Stock Acquisition Rights

The Corporate Law also provides for companies to purchase treasury stock and dispose of such treasury stock by

resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for

distribution to the shareholders which is determined by specifi c formula. Under the Corporate Law, stock acquisition

rights, which were previously presented as a liability, are now presented as a separate component of equity. The


Corporate Law also provides that companies can purchase both treasury stock acquisition rights and treasury stock.

Such treasury stock acquisition rights are presented as a separate component of equity or deducted directly from

stock acquisition rights.

9. Income Taxes

The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the

aggregate, resulted in a normal effective statutory tax rate of approximately 40.7% for the years ended March 31,

2007 and 2006.

The tax effects of signifi cant temporary differences which resulted in deferred tax assets and liabilities as of March

31, 2007 and 2006 are as follows:


2007 2006 2007

Current: Deferred tax assets: Devaluation of program rights ¥ 2,727 ¥ 2,751 $ 23,100 Accrued enterprise taxes 630 381 5,337 Accrued bonuses 852 864 7,217 Unrealized loss on available-for-sale securities 5 Other 596 548 5,049 Less valuation allowance (1) (1) (8) Total 4,804 4,548 40,695 Deferred tax liabilities—other (5) (1) (42) Net deferred tax assets ¥ 4,799 ¥ 4,547 $ 40,653Non-current: Deferred tax assets: Retirement benefi ts ¥ 3,467 ¥ 3,813 $ 29,369 Devaluation of property and equipment 320 95 2,711 Devaluation of investment securities 4,469 3,915 37,857 Other 554 753 4,693 Less valuation allowance (98) (96) (830) Total 8,712 8,480 73,800 Offset with deferred tax liabilities (8,712) (8,480) (73,800) Net deferred tax assetsDeferred tax liabilities: Tax benefi t from deferred gain on sales of property and equipment ¥ (5,923) ¥ (5,940) $ (50,174) Unrealized gain on available-for-sale securities (9,478) (14,518) (80,289) Other (32) (31) (271) Total (15,433) (20,489) (130,734) Offset with deferred tax assets 8,712 8,480 73,800 Net deferred tax liabilities ¥ (6,721) ¥(12,009) $ (56,934)

For the years ended March 31, 2007 and 2006, the difference between the statutory tax rate and effective tax rate

is less than 5% of the statutory tax rate; therefore, a tax rate reconciliation is not disclosed.


10. Leases

a. Finance Lease Transactions

As lessee

The Group leases certain machinery, vehicles and equipment, offi ce space and other assets.

Total rental expenses including lease payments under fi nance leases for the years ended March 31, 2007 and 2006

were ¥330 million ($2,795 thousand) and ¥394 million, respectively.

Pro forma information of leased property such as acquisition cost, accumulated depreciation, obligations under

fi nance leases, depreciation expense and interest expense of fi nance leases that do not transfer ownership of the

leased property to the lessee on an “as if capitalized” basis for the years ended March 31, 2007 and 2006 was as

follows:


Machinery, Vehicles and Equipment 2007 2006 2007

Acquisition cost ¥1,601 ¥1,734 $13,562Accumulated depreciation 996 771 8,437Net book value ¥ 605 ¥ 963 $ 5,125

Obligations under Finance Leases

Due within one year ¥ 300 ¥ 338 $ 2,541Due after one year 305 625 2,584Total ¥ 605 ¥ 963 $ 5,125

Depreciation expense, which is not refl ected in the accompanying consolidated statements of income, is computed

by the straight-line method and was ¥330 million ($2,795 thousand) and ¥394 million for the years ended March 31,

2007 and 2006, respectively.

The amounts of obligations, acquisition cost and depreciation under fi nance leases include the imputed interest

expense portion.

As lessor

Total lease receipts were ¥164 million ($1,389 thousand) and ¥248 million for the years ended March 31, 2007 and

2006, respectively.

Pro forma information on leased property such as acquisition cost, accumulated depreciation, receivables under

fi nance lease, depreciation expense and interest income of fi nance leases that do not transfer ownership of the leased

property to the lessee on an “as if capitalized” basis for the years ended March 31, 2007 and 2006 was as follows:


Machinery and Equipment 2007 2006 2007

Acquisition cost ¥1,093 ¥1,863 $9,259Accumulated depreciation 973 1,278 8,242Net book value ¥ 120 ¥ 585 $1,017

Receivables under Finance Leases

Due within one year ¥ 161 ¥ 248 $1,364Due after one year 122 849 1,033Total ¥ 283 ¥1,097 $2,397


Depreciation expenses were ¥129 million ($1,093 thousand) and ¥316 million for the years ended March 31, 2007

and 2006, respectively. The amounts of receivables under fi nance leases include the imputed interest income portion.

b. Operating Lease Transactions

The minimum rental commitments under noncancelable operating leases at March 31, 2007 and 2006 were as

follows:


As Lessee 2007 2006 2007

Due within one year ¥ 47 ¥ 45 $ 398Due after one year 313 261 2,651Total ¥ 360 ¥ 306 $ 3,049

As Lessor

Due within one year ¥ 130 ¥ 130 $ 1,101Due after one year 5,861 5,991 49,648Total ¥5,991 ¥6,121 $50,749

11. Contingent Liabilities

The Group’s contingent liabilities as of March 31, 2007 as guarantors of indebtedness were as follows:


Employees ¥ 568 $ 4,812Broadcasting Satellite System Corporation 1,280 10,842Total ¥1,848 $15,654

12. Subsequent Event

The following appropriation of retained earnings at March 31, 2007 was approved at the Company’s shareholders

meeting held on June 28, 2007:


Year-end cash dividends, ¥95 ($0.80) per share ¥2,370 $20,082


13. Segment Information

Information about industry segments, geographic segments and sales to foreign customers for the years ended

March 31, 2007 and 2006 was as follows:

(1) Industry Segments

2007

a. Sales and operating income

Millions of YenTelevision

BroadcastingCultural Activities Other

Elimination/Corporate Consolidated

Sales to outside customers ¥267,459 ¥68,042 ¥ 8,151 ¥343,652Intersegment sales/transfers 445 1,369 6,385 ¥ (8,199) Total sales 267,904 69,411 14,536 (8,199) 343,652Operating expenses 234,061 61,218 13,213 4,816 313,308Operating income ¥ 33,843 ¥ 8,193 ¥ 1,323 ¥(13,015) ¥ 30,344

Thousands of U.S. DollarsTelevision



Sales to outside customers $2,265,642 $576,382 $ 69,047 $2,911,071Intersegment sales/transfers 3,770 11,597 54,087 $ (69,454) Total sales 2,269,412 587,979 123,134 (69,454) 2,911,071Operating expenses 1,982,728 518,577 111,927 40,796 2,654,028Operating income $ 286,684 $ 69,402 $ 11,207 $(110,250) $ 257,043

b. Assets, depreciation and capital expenditures




Assets ¥267,303 ¥64,259 ¥63,943 ¥133,760 ¥529,265Depreciation 11,600 242 1,516 1,003 14,361Capital expenditures 5,158 113 549 223 6,043

Thousands of U.S. DollarsTelevision



Assets $2,264,321 $544,337 $541,660 $1,133,079 $4,483,397Depreciation 98,264 2,050 12,842 8,496 121,652Capital expenditures 43,693 957 4,651 1,889 51,190


2006

a. Sales and operating income




Sales to outside customers ¥277,211 ¥61,349 ¥ 8,082 ¥346,642Intersegment sales/transfers 766 1,126 7,000 ¥ (8,892) Total sales 277,977 62,475 15,082 (8,892) 346,642Operating expenses 241,969 57,290 12,726 6,106 318,091Operating income ¥ 36,008 ¥ 5,185 ¥ 2,356 ¥(14,998) ¥ 28,551

b. Assets, depreciation and capital expenditures




Assets ¥284,219 ¥47,499 ¥63,220 ¥125,014 ¥519,952Depreciation 14,407 342 1,663 1,149 17,561Capital expenditures 5,105 152 748 261 6,266

(2) Geographic Segments

Sales and total assets of the Company and its domestic subsidiaries for the years ended March 31, 2007 and

2006 represented more than 90% of the consolidated sales and total assets of the respective years. Accordingly,

geographic segments are not disclosed.

(3) Sales to Foreign Customers

Sales to foreign customers for the years ended March 31, 2007 and 2006 represented less than 10% of the

consolidated sales of the respective years. Accordingly, sales to foreign customers are not disclosed.


Independent Auditors’ Report

BOARD OF STATUTORYAUDITORS

EXTERNALDISCUSSION

COUNCIL

INTERNALAUDIT

COMMITTEE

INTERNAL AUDITCOMMITTEE

MANAGEMENTOFFICE

BOARD OF DIRECTORS

BOARD OF OPERATING OFFICERS

BOARD OFSTATUTORY AUDITORSMANAGEMENT OFFICE

*DOMESTIC BUREAUS YOKOHAMA CHIBA SAITAMA NAHA

*OVERSEAS BUREAUS LONDON (NNN) PARIS (NNN) MOSCOW (NNN) CAIRO (NNN) CHINA (NNN) SHANGHAI (NNN) SEOUL (NNN) BANGKOK (NNN)

NEW YORK (NNN) WASHINGTON, D.C. (NNN) LOS ANGELES (NNN)

EXECUTIVE ADMINISTRATIONPUBLIC RELATIONSCORPORATE ADMINISTRATIONCORPORATE STRATEGY PLANNINGINVESTOR RELATIONSCORPORATE SHARES MANAGEMENTFACILITY PLANNING & DEVELOPMENTNTV ENVIRONMENTAL MANAGEMENT OFFICEMEDIA BUSINESS STRATEGY PLANNINGINTERNATIONAL PLANNING & DEVELOPMENTIT PLANNING & DEVELOPMENT INFORMATION SECURITY MANAGEMENT OFFICENETWORK STRATEGY PLANNINGNETWORK OPERATIONSNIPPON TV NETWORK SYSTEMLEGAL AFFAIRSBROADCAST STANDARDSVIEWER RELATIONSPERSONAL INFORMATION MANAGEMENT OFFICEHUMAN RESOURCESLABOR WELFAREHUMAN RESOURCES DEVELOPMENTNTV GROUP STRATEGY PLANNINGNTV HEALTH CLINICCORPORATE GOVERNANCE PLANNING & DEVELOPMENTACCOUNTINGFINANCEASSET MANAGEMENTEVENTSVENUE PLANNING & DEVELOPMENTEVENT PROMOTION & ADMINISTRATION"24-HOUR TV" ADMINISTRATION OFFICENETWORK SALESSPOT COMMERCIAL SALESLOCAL SALESSALES PROMOTION & ADMINISTRATIONSALES DEVELOPMENTON-AIR COMMERCIAL OPERATIONSADMINISTRATIONSALESNAGOYA SALES OFFICELICENSING BUSINESSCONTENT FUND MEDIA COMMERCE BUSINESSESPUBLISHINGPROGRAM SALESCONTENT BUSINESS MANAGEMENTPROGRAMMING MULTI-USE PROGRAM PLANNING & DEVELOPMENTDIGITAL PRODUCTIONDIGITAL BUSINESS PLANNING & DEVELOPMENTFILM PROGRAMMING & ACQUISITIONFILM PRODUCTIONMARKETING & RESEARCHPUBLICITYANNOUNCERSRIGHTS & CONTRACTS MANAGEMENTPROGRAM ADMINISTRATIONPROGRAMMING BUSINESS MANAGEMENTADMINISTRATIONDRAMA PRODUCTIONCP GROUPSADMINISTRATIONCP GROUPSCP GROUPSSPORTS CONTENT PLANNING & DEVELOPMENTPOLITICAL NEWSECONOMIC & FINANCIAL NEWSNATIONAL NEWSFOREIGN NEWSCAMERA CREWSPECIAL NEWS PRODUCTIONNEWS PROGRAMS & DOCUMENTARIESNEWS EDITINGMULTI-NEWS PRODUCTIONCOMMENTATORS COMMITTEENEWS CODE COMMITTEEADMINISTRATIONNIPPON NEWS NETWORK ADMINISTRATION OFFICEPRODUCTION ENGINEERING MANAGEMENTNEWS ENGINEERINGTECHNICAL OPERATIONSMASTER CONTROL OPERATIONSTRANSMISSION MANAGEMENTTECHNOLOGY PLANNINGTECHNOLOGY RESEARCH & DEVELOPMENTTECHNOLOGY MANAGEMENTCONTENT ARCHIVE

IT PLANNING & DEVELOPMENT

NETWORK

NTV GROUP STRATEGY

KANSAI OFFICE

PROGRAMMING STRATEGY

DIGITAL CONTENT

FILM

CONTENT PROMOTION

PRODUCTION PLANNING & DEVELOPMENT

PRODUCTION ENGINEERING

BROADCAST ENGINEERING

TECHNOLOGY STRATEGIC PLANNING

EXECUTIVE ADMINISTRATION

CORPORATE ADMINISTRATION

MEDIA STRATEGY PLANNING & DEVELOPMENT

COMPLIANCE & STANDARDS

HUMAN RESOURCES

FINANCE

EVENTS

SALES

CONTENT BUSINESS

PROGRAMMING

PRODUCTION

INFOTAINMENTSPORTS

NEWS

ENGINEERING & TECHNOLOGY


Organization (As of July 1, 2007)

61ANNUAL REPORT 2007

NTV Group (As of July 1, 2007)


Program Planning and ProductionNTV Group Holdings Inc.*

NTV Technical Resources Inc.*

AX-ON Inc.*

Nippon Television Art Inc.*

NTV America Company*

NTV International Corporation*

Nippon Television Network Europe B.V.

NTV Personnel Center Corp.

J.M.P Co., Ltd.

Nishinihon Eizo Corporation

Nagasaki Vision Corp.

Kagoshima Vision Corporation

Kanazawa Eizo Center Corporation

Nagano Visual Center Corporation

Cosmo Space Co., Ltd.

Promedia Co., Ltd.

Broadcasting ServiceBS Nippon Corporation

CS Nippon Corporation

YOMIURI TELECASTING CORPORATION

Fukuoka Broadcasting Corporation

Culture-Related Business

Event Planning and ProductionNTV EVENTS Inc.*

Copyright ManagementNippon Television Music Corporation*

Rights Inn Corporation

Audio and Visual Content Planning, Production and SaleVAP Inc.*

VAP Music Publishing Inc.

Art Exhibition PlanningMamma Aiuto Inc.

Other Business

Novelty Product SalesNTV Service Inc.*

Facility ManagementNippon Television Work 24 Corporation*

Professional Football Team ManagementNippon Television Football Club Co., Ltd.*

(TOKYO VERDY 1969)

Internet and BroadbandForecast Communications Inc.*

NTV IT Produce Corporation

B-BAT Inc.

CYBIRD Mobilecasting Inc.

Art Exhibition Goods SalesArt Yomiuri Co., Ltd.

OtherSOUND INN STUDIOS INC.

RF Radio Nippon Co., Ltd.

Radio Nippon Create Inc.

RF Music Publisher Inc.

Shiodome Urban Energy Corporation

*Consolidated subsidiary

NTV Global Network

NTV Network Stations (Japan)

The Sapporo Television Broadcasting Co., Ltd. (STV)

RAB Aomori Broadcasting Corporation (RAB)

TV IWATE CORPORATION (TVI)

MIYAGI TELEVISION BROADCASTING CO., LTD. (MMT)

Akita Broadcasting System (ABS)

Yamagata Broadcasting Co., Ltd. (YBC)

Fukushima Central Television CO., LTD. (FCT)

TELEVISION NIIGATA NETWORK (TeNY)

TV.Shinshu Broadcasting Co., LTD. (TSB)

Yamanashi Broadcasting System (YBS)

Shizuoka Daiichi Television Corporation (SDT)

KITANIHON Broadcasting CO., LTD. (KNB)

TELEVISION KANAZAWA Corporation (KTK)

FUKUI BROADCASTING CORPORATION (FBC)

CHUKYO TV BROADCASTING CO., LTD. (CTV)

YOMIURI TELECASTING CORPORATION (YTV)

NIHONKAI TELECASTING CO., LTD. (NKT)

Hiroshima Telecasting Co., Ltd. (HTV)

Yamaguchi Broadcasting Co., Ltd. (KRY)

JRT Shikoku Broadcasting Co., Ltd. (JRT)

NISHINIPPON BROADCASTING CO., LTD. (RNC)

Nankai Broadcasting CO., LTD. (RNB)

Kochi Broadcasting Co., Ltd. (RKC)

Fukuoka Broadcasting Corporation (FBS)

NAGASAKI INTERNATIONAL TELEVISION BROADCASTING, INC. (NIB)

KKT Corporation (KKT)

Television Oita System Co., ltd. (TOS)

Miyazaki Telecasting Co., ltd. (UMK)

Kagoshima Yomiuri Television Corporation (KYT)

NTV/NNN Overseas News Bureaus

NTV International Corporation

Nippon Television Network Europe B.V.

London

Paris

Moscow

Cairo

Beijing

Shanghai

Seoul

Bangkok

New York

Washington, D.C.

Los Angeles

Corporate Data (As of March 31, 2007)

Head Office

Nippon Television Network Corporation

1-6-1 Higashi Shimbashi, Minato-ku,

Tokyo 105-7444, Japan

Tel: 81-3-6215-1111

Date of Establishment

October 28, 1952

Start of Operations

August 28, 1953

Capital

¥18,575,997,144

Fiscal Year End

March 31 of each year

Number of Employees

2,886 (Consolidated)1,116 (Non-consolidated)

Board of Directors, Corporate Auditors and Corporate Officers (As of September 20, 2007)

Representative Director, Executive Chairman Seiichiro Ujiie

Representative Director, Corporate Advisor Kohei Manabe

Representative Director, Chairman Noritada Hosokawa

Representative Director, President Shintaro Kubo

Board Director, Senior Managing Officer Katsuhiro Masukata

Board Director, Managing Officer Yoichi Shimada

Board Director, Operating Officer Hime Miura

Board Director, Operating Officer Haruhisa Murokawa

Board Director, Operating Officer Shinichi Tamura

Board Director, Operating Officer Yoshimichi Hironaka

Board Director Toru Shoriki

Board Director Tsuneo Watanabe*

Board Director Nobuo Yamaguchi*

Board Director Hiroshi Maeda*

Board Director Seiji Tsutsumi*

Board Director Takashi Imai*

Board Director Yukimasa Iwamoto*

Standing Statutory Auditor Kinya Yokoegawa

Statutory Auditors Tomonari Doi**

Statutory Auditors Kenya Mizukami**

Senior Operating Officer Fumihiro Hirai

Senior Operating Officer Yasuhiro Nose

Operating Officer Etsuro Oshima

Operating Officer Kazuo Gomi

* Outside directors pursuant to Article 2.15 of the Corporation Law** Outside auditors pursuant to Article 2.16 of the Corporation Law



Investor Information (As of March 31, 2007)

Stock Exchange ListingFirst Section of Tokyo Stock Exchange

Stock Code9404

Common StockAuthorized 100,000,000 sharesIssued 25,364,548 shares

Number of Shareholders45,789 Transfer Agent and RegistrarThe Chuo Mitsui Trust and Banking Company, Limited3-33-1 Shiba, Minato-ku, Tokyo 105-0014, Japan

Number of shares held

Percentage of total shares issued (%)

The Yomiuri Shimbun Holdings 3,764,948 14.84

YOMIURI TELECASTING CORPORATION 1,574,836 6.20

The Yomiuri Shimbun 1,353,920 5.33

Teikyo University 897,270 3.53

Japan Trustee Services Bank, Ltd. (Trust Account) 790,300 3.11

NTT DoCoMo, Inc. 760,500 2.99

Morgan Stanley and Company International Ltd. 588,520 2.32

The Master Trust Bank of Japan, Ltd. (Trust Account) 567,920 2.23

NAGOYA BROADCASTING NETWORK 566,000 2.23

YOMIURI LAND. CO., LTD. 523,600 2.06

0

5,000

10,000

15,000

20,000

25,000

0

1,000

2,000

3,000

4,000

04/4 5 6 7 8 9 10 11 12 2 3 4 5 6 7 8 9 10 11 12 06/1 2 3 4 5 6 7 8 9 10 11 12 07/1 2 305/1

Trading Volume (Thousands of shares)

Stock price (Yen)

Stock Price Range and Trading Volume (Tokyo Stock Exchange)

Major Shareholders

Financial institutions15.86%

Individuals and others10.70%

Foreignentities19.65%

Securities firms2.17%

Other domestic firms51.62%

Distribution of Shares

This annual report was produced using waterless printing, a computer-to-plate process and soy ink.

The paper used herein is certified by the Forest Stewardship Council (FSC) as being made from sustainably managed forests.

These many experiences had made the mighty tree very wise. · 62 Corporate Data 63 Investor...

Documents

Transcript of These many experiences had made the mighty tree very wise. · 62 Corporate Data 63 Investor...