FY14 Earnings Forecasts
Total Page：16
File Type：pdf, Size：1020Kb
FY13 Results Materials (Fiscal Year ended March 31, 2014) May 21, 2014 Fuji Media Holdings, Inc. 1 These materials are an English translation of the original document in Japanese. The Company's performance forecasts and other information are based on the Company's understanding as of the time the earnings presentation materials were prepared. These materials may contain information about financial targets, forecasts, and other forward looking statements regarding Fuji Media Holdings, Inc., its affiliates, and investees. Actual results may differ substantially due to a variety of factors, including changes in business management, economic conditions, financial markets, and other circumstances. “FY13” means the fiscal year ended March 31, 2014. The period from January 1, 2014 to March 31, 2014 is referred to as “4Q.” 2 Fuji Media HD Group Current Status and Management Vision 3 Business Structure Supporting the Corporate Group Operating income declined in FY13 for the first time in four years, but we expect gains to resume in FY14 Clearer roles of the holding company and Fuji TV, with each focusing on its own issues Improvements in Fuji TV’s ratings and broadcasting income Operating income of subsidiaries other than Fuji TV reached a record high of ¥15.5 billion Billions of yen Consolidated Operating Income 40040 37.6 35 34.0 350 33.2 31.5 30030 26.3 23.4 25025 18.0 Fuji TV’s operating income 25.0 16.0 20020 15015 22.2 9.2 Subsidiaries other than 10010 14.2 15.5 16.0 Fuji TV 505 9.8 8.2 * Consolidated 4.1 operating income less 0 (0.6) Fuji TV’s operating 2009FY09年度 2010FY10年度 2011FY11年度 2012FY12年度 2013FY13年度 2014FY14年度予想 (Forecast) income -50(5) 4 Each Business Segment Becoming an Income Pillar and Contributing to Consolidated Results We are broadening of our business domain, and while centered on broadcasting, we are establishing a robust business structure to generate earnings across the corporate group FY13 Operating Income ¥31.5 billion Broadcasting Life Information (BS and Radio) ¥2.1 billion ¥1.4 billion Fuji TV Production Urban Development ¥2.8 billion ¥16.0 billion ¥5.3 billion Advertising Video and Music ¥0.4 billion ¥2.2 billion Other ¥0.7 billion 5 Developing Earnings Opportunities in Growth Fields Cultivate the Digital Field New Businesses Overseas Program streaming business revenue FI Media Project, Inc. expanding rapidly (Joint venture with ITOCHU Corporation) Strong growth expected to continue, centered on streaming for mobile devices Tie-ups with Asian broadcasters, with commercialization of mail order and Game business steadily growing, music rights businesses on a trial basis entering new stage In-house original games contributing to earnings Growth expected in smartphone game apps Mobile online game development company Fuji & gumi Games established as a joint venture Music audition program ASIA VERSUS Broadcast in four Asian regions (January 2014) Goal of new business development Investment from Fuji Startup Ventures for in Asia development of major titles, with possible expansion to overseas markets 6 Tokyo DAIBA MICE/IR Special Zone Concept Proposal for an MICE/IR concept for the Japanese government’s strategic special zone (September 2013) Preparations being made with partner companies for commercialization Aim to create a plan utilizing the advantages of Daiba as a spot for international tourism As the pioneer of the Daiba area, Fuji Media HD continues to enhance the area’s appeal Fuji Media HD building illumination Cirque du Soleil Summer Fuji Media HD building event “GLITTER8” OVO “Odaiba New World” Participate in the Tokyo Opening performance in Daiba a great success Attendance of 4.2 million in 2013 Metropolitan Government’s Expansion planned for 2014 “Waterfront City MICE Center Development Project” 7 Fuji Media Holdings Results, Forecasts, and Measures 8 FY13 Business Results Consolidated operating income ¥31.5 billion – Earnings decline despite revenue gain Operating income YoY Video Urban ＋418 Increase Production and ＋374 development Broadcasting music Other ( 101) Advertising (111) Life (20) Decrease (352) information ( 7,171) Millions of yen Fuji TV Urban Development Revenue and earnings down on decline in Property sales in the asset development business advertising revenue contributed to earnings Events and other non-broadcasting businesses Gains offset effect of tenant turnover in the building positive business Video and Music Life Information Revenue increase from hit anime title Attack on Titan Dinos: Sharp rise in earnings on positive returns for both Costs higher on increases in production expenses catalogue and TV and in title purchases Cecile: Earnings down on sluggish 1H sales and increase in sales promotion spending 9 FY13 Results Overview Millions of Yen 4Q (Jan. - Mar.) Full year Consolidated FY13 FY12 YoY FY13 FY12 YoY Net Sales 172,958 161,401 7.2% 642,145 632,029 1.6% Operating Income 7,370 6,593 11.8% 31,527 37,608 (16.2)% Ordinary Income 7,605 6,806 11.7% 34,838 47,209 (26.2)% Net Income 3,487 4,404 (20.8)% 17,282 31,337 (44.8)% Note: Ordinary income and net income for the fiscal year ended March 31, 2013 includes a gain on negative goodwill (¥6.8 billion) from acquisition of shares in Kansai Telecasting Corporation. Millions of Yen 4Q (Jan. - Mar.) Full year Fuji TV FY13 FY12 YoY FY13 FY12 YoY Net Sales 79,446 77,671 2.3% 316,846 323,581 (2.1)% Operating Income 2,511 2,753 (8.8)% 16,004 23,449 (31.7)% Ordinary Income 2,567 2,705 (5.1)% 16,036 23,548 (31.9)% Net Income 1,458 948 53.8% 8,599 13,177 (34.7)% 10 Highlights of FY14 Earnings Forecasts Consolidated operating income of ¥34.0 billion – Forecast increase in both revenue and earnings Operating income YoY Billions of Yen Raised +2.1 ＋0.2 ±0 ＋＋0.11 ＋＋0.11 ＋±00 ±0 ＋0 Broadcasting Video and Advertising Other music Life Urban Production information development Fuji TV Forecast increase in both revenue and earnings, on ratings improvement amid expectations for solid advertising demand Other Subsidiaries Raise the earnings standard of each company to achieve higher earnings overall. Aim for total operating income from subsidiaries other than Fuji TV to increase to ¥16.0 billion. 11 FY14 Earnings Forecasts Millions of yen Consolidated 1H YoY 2H YoY Full year YoY Net sales 313,300 2.0% 337,400 0.7% 650,700 1.3% Operating income 13,100 (9.0)% 20,900 22.0% 34,000 7.8% Ordinary income 14,500 (7.0)% 22,300 15.9% 36,800 5.6% Net income 8,500 37.2% 14,100 27.2% 22,600 30.8% Millions of yen Fuji TV 1H YoY 2H YoY Full year YoY Net sales 162,300 0.8% 159,500 2.4% 321,800 1.6% Operating income 7,700 (5.7)% 10,300 31.4% 18,000 12.5% Ordinary income 7,800 (4.7)% 10,300 31.2% 18,100 12.9% Net income 4,700 16.0% 6,400 40.7% 11,100 29.1% YoY 1H 2H Full year Network time (1.9)% (3.1)% (2.5)% Local time 0.5% (3.4)% (1.5)% Spot 5.4% 7.5% 6.5% Total broadcasting revenues 1.6% 2.0% 1.8% 12 Fuji TV: Measures to Strengthen the Programing Lineup April programming revisions: Major changes implemented to raise ratings New programs launched to strengthen GT variety programming, centered on weekends, the biggest challenge New style information variety program Viking launched in afternoon weekday slot Ongoing format modification and promotion to create a new standard afternoon program Continual promotion of exciting new projects Simultaneous production of anime, drama, and movie versions Summer 2014 Nobunaga Concerto, a commemorative project for Fuji TV’s 55th anniversary FNS Day – 27-hour Television (provisional title) Jul. 2014 – Anime broadcast start SMAP to be MC for first time × Oct. 2014 – Serial drama start July 2014 × Leading actor: Shun Oguri HERO selected for Monday 9:00 Live-action movie p.m. drama Leading actor: Takuya Kimura 13 Fuji TV: Production Costs Billions of Yen FY13 FY12 YoY 1Q 24.1 23.5 2.5% 2Q 24.7 25.7 (3.9)% 1H 48.8 49.2 (0.8)% 3Q 24.1 25.3 (5.0)% 4Q 25.3 24.7 2.4% 2H 49.4 50.1 (1.3)% Full year 98.3 99.3 (1.1)% * Direct costs of in-house production and program purchases 14 Fuji TV: Other Businesses Revenue Other Businesses Other Broadcasting Business Millions of Yen Millions of Yen FY13 FY12 YoY FY13 FY12 YoY Other Broadcasting Other Businesses 50,770 46,750 4,019 32,759 33,841 (1,082) Business Revenue Event 17,842 10,041 7,801 Program Sales 18,318 18,925 (607) Revenue Movie 9,531 13,655 (4,123) CS Broadcasting Revenues and 14,440 14,915 (474) Video 5,975 5,641 334 Other Merchandising 6,498 6,964 (465) Digital 6,175 5,032 1,143 Other 4,745 5,415 (670) 15 Fuji TV: Non-Broadcasting Business Event Business Movie Business Cirque du Soleil OVO THERMAE ROMAE II a major hit Box office revenue of ¥3.5 billion (as of May 20) Performances scheduled through June 2015 in Tokyo, Osaka, Nagoya, Fukuoka, and Sendai Main releases planned for FY14 Kenichi Matsuyama, Yu Aoi June 14 Climbing to Spring Latest production of director Daisaku Kimura, known for Mt. Tsurugidake Hiroshi Tamaki, Satomi Ishihara July 26 Time Trip App Time-travelling entertainment historical drama Mone Kamishiraishi, Hiroki Hasegawa, Sumiko Sep. 13 Lady Maiko Fuji Entertainment from director Masayuki Suo Satoshi Tsumabuki, Kazuya Kamenashi, Dec. Vancouver Asahi Koichi Sato (provisional) Commemorative film for Fuji TV’s 55th Expected to provide considerable earnings anniversary boost through FY14 16 Fuji TV: Non-Broadcasting Business Billions of yen Digital business revenue 7 6.1 Digital business revenue growing, 6 5.0 5 exceeding ¥6.0 billion 3.9 4.2 4 3 Aim to create a new business pillar 2 that ranks alongside movies and 1 events, with revenue of ¥10 billion 0 FY2010 FY2011 FY2012 FY2013 Games Digital Business Program Streaming Digital Business In-house produced games underpin to earnings Fuji TV On Demand Rapid growth in viewing on smartphones and tablets Growth driven by streaming for missed episode of dramas Customer base broadened with original content such as Mechayuru, and special plans such as unlimited viewing of Noitamina Launch full-fledged game apps for the growing smartphone game market Launch of “Fuji TV NEXT smart” (Apr.