005_0331097222406.indd 1 2012/07/03 10:29:37 TV Asahi in Brief SEGMENT COmpOSITION TV Broadcasting Business TV broadcasting, the mainstay segment of the TV Asahi Group, is comprised of operations related to the production and transmission of television programs aired on the Group’s network. These 85.1% activities are undertaken primarily by TV Asahi and its subsidiary TV Asahi Productions Co., Ltd. TV Asahi ranked third in all-day, golden time and prime time viewer ratings. It did particularly well in golden time ratings, securing sole possession of third place among a total of six stations (including NHK) No.3 for the first time in 42 years. 3.9% PARTNERS season 10 As for prime time ratings, TV Asahi is in a position to compete for second place, having placed second or higher for 24 out of 52 weeks in 24 FY2012. weeks 52 Moshimo no Simulation Variety Otameshika! 11.0% (What If Simulation Variety Otameshika) TV Asahi achieved No.1 in prime time 2 ratings for the seventh straight year, continuing to enjoy a strong following among younger demographics who are preferred by No.1 advertisers. Matsuko&Ariyoshi Angry New Party TV Asahi ranked third in advertising Share* of TV Advertising Revenue revenue for the second consecutive 20.5 (%) year. In the Tokyo spot advertising 20.0 market, in particular, TV Asahi was the 19.5 only station to enjoy a significant No.3 19.0 year-on-year growth in market share 18.5 achieving 21.5%. 18.0 09 10 11 12 *“share”among the five Tokyo area commercial stations. Morning Bird! The switchover to digital-broadcast- Channel 5 ing having been completed, TV Asahi is now “TV Asahi on Digital Channel 5.” AFC Asian Qualifiers For The 2012 London Games 1 010_0331097222406.indd 1 2013/06/25 20:25:06 85.1% Music Publication Business 85.1% TV Asahi Music Co., Ltd., the core subsidiary of the Group’s music publication business, 3.9% administers copyrights for music composi- tions, manages artists and scouts for promis- ing new talent in coordination with television programs. 3.9% KETSUMEISHI’s national tour 11.0% Other Businesses TV Asahi pursues other content-related businesses, such as TV shopping, special 11.0% events production, sales of programs on DVDs, and investment in motion pictures, as well as content distribution to digital devices. News EX KAMEN RIDER OOO THE MOVIE GOKAIGERS THE MOVIE ©2011 KAMEN RIDER OOO THE MOVIE PRODUCTION COMMITTEE ©2011 GOKAIGERS THE MOVIE PRODUCTION COMMITTEE CONTENTS To Our Stakeholders ................................................................................ 3 Forward-Looking Statements This report contains forward-looking statements Review of Operations .............................................................................. 5 based on management’s assumptions and beliefs CSR ....................................................................................................... 9 in light of the information currently available. These statements are subject to risks and Corporate Governance ............................................................................10 uncertainties that could cause actual results to Financial Section ...................................................................................11 differ materially from those discussed in this TV Asahi Network ................................................................................. 20 report. Such risks include, but are not limited to, market trends, economic conditions and changes Principal Subsidiaries and Affiliates .........................................................21 in industry regulations. Board of Directors ................................................................................ 22 Investor Information ............................................................................. 22 2 010_0331097222406.indd 2 2013/06/25 20:25:08 To Our Stakeholders Aiming to become one of Japan’s top Content Business Enterprises in the future Hiroshi Hayakawa President monthly viewer ratings in four time frames (all-day, golden time, OUR acHieveMENTS prime time and prime 2) for the month of April. This achievement I would like to take this opportunity to extend my sincere grati- was the first time ever since our station launch. tude to our stakeholders for your continued support of the TV In terms of advertising revenue, we were able to achieve an Asahi Group. increase, backed by high viewer ratings, in spite of adverse impact FY2012 was the first year of the three-year management of the Great East Japan Earthquake. In the spot sales revenue in plan “Digital 5 Vision <Management Plan FY2012-2014>.” particular, we successfully narrowed the difference in shares with Under the plan, TV Asahi is aiming to become one of Japan’s the higher-ranking stations by becoming the only major broad- top Content Business Enterprises in the future. We have set the casting station in Tokyo to achieve a significant increase in share. three years for completing the infrastructure necessary to As for non-advertising revenues, our music publication busi- develop into a content-based enterprise with one of the highest ness enjoyed a considerable increase in revenue and profit in spite earning capacities in Japan. of the slump in the music software market. In the Internet-related There are two main pillars to the management plan. One is business, where growth is anticipated, the revenue from “tv asahi the further strengthening of our position within the industry from douga (VOD service for PC and mobile)” more than doubled. In the perspective of viewer ratings and advertising revenue in the addition, we took on various challenges for the future, including TV broadcasting business, our core business. The other is the overseas and special event businesses. building up of non-TV broadcasting businesses in order to expand I would like to ask for your unchanging support as we con- our non-advertising revenue. These two requirements are essential tinue to work toward the achievement of our management plan for the further growth of TV Asahi, and the five strategic goals for and further improvement of the value we deliver to our the three years covered by the management plan were established shareholders. in accordance with this belief. IN FY2012, we took a large step forward toward the achieve- June 2012 ment of our strategic goals on viewer ratings, advertising revenue and non-advertising revenue. First, with regard to viewer ratings, the differences between our all-day and golden time viewer ratings and those of the No.1 station were the smallest recorded since our station launch. The Hiroshi Hayakawa Company continues to do well in FY2013, achieving first place in President 3 010_0331097222406.indd 3 2013/06/25 20:25:10 Digital Vision <Management Plan FY2012-2014> ◎ Strategic Goals for the 3 years ◎ Numerical Target for FY2014 (Consolidated) “No.1 in Prime Time & Prime 2” “Top Group in All Day” Net Sales ratings during FY 2014 Expansion of Expansion of non-advertising advertising revenue and revenue/prot through development of new diversication of content advertising Completion of distribution and bn yen service models infrastructure to cultivation of new 250 become one of businesses Japan’s top Content Business Operating Income Enterprises Reform of Enhancement of personnel system efciency and and corporate culture competitiveness of to create a more subsidiaries vibrant TV Asahi bn yen and afliates Group 12.5 (Operating Profit Margin: 5.0%) ◎ Topics for FY2012 TV Asahi Corporation and Consolidated Subsidiaries Years ended March 31, 2012 and 2011 Viewer Ratings Millions of yen ● All-Day (6:00 a.m. to midnight), Golden Time (7:00 p.m. to 10:00 p.m.): 2012 2011 The smallest difference with the No. 1 station since station launch ● Prime Time (7:00 p.m. to 11:00 p.m.): Second place or higher Net sales ¥239,845 ¥235,398 for 24 out of 52 weeks ● Prime 2 (11:00 p.m. to 1:00 a.m.): First place for the seventh Operating income 10,462 9,851 consecutive year Net income 7,496 7,013 Advertising Revenue Total assets 318,519 309,871 ● Achieved an increase in revenue in spite of the impact of the Great East Japan Earthquake. Total net assets 248,531 242,863 ● Only station in Tokyo to achieve a significant increase in share in Tokyo spot advertising market (21.5% (up 0.4% year on year)). Non-advertising revenue/profit ● The music publication business enjoyed a significant increase in revenue and profit. ● Revenue from “tv asahi douga (VOD service for PC and mobile)” more than doubled year on year. ● Organized a large-scale music festival “tv asahi★DREAM FESTIVAL 2011”. ● Expanded overseas business , mainly in Asian markets. Note: “FY2012” refers to the fiscal year ending March 31, 2012 and all other fiscal years are referred to in the same manner. 4 010_0331097222406.indd 4 2013/06/25 20:25:11 Review of Operations Sales from TV Broadcasting Business (after elimination) TV BROADCASTING BUSINESS (Billions of yen) 250 Third Place in All-Day, Golden and Prime Time Viewer Ratings 200 As stated in the management plan, TV Asahi is aspiring to be “No.1 in Prime Time and Prime 2”, and to be among the “Top Group in All Day” viewer ratings during FY2014. FY2012 being the 150 first year in the pursuit of this goal, we reinforced our competitive strength in terms of viewer 100 ratings by strategically allocating production cost to the enhancement of belt and regular pro- grams and to the development of new hit programs. 50 Consequently, TV Asahi’s viewer ratings, by daypart, for the fiscal year ended March 31, 0 2012 were as follows: