CONSOLIDATED FINANCIAL REPORTFOR THE SECOND QUARTER OF FISCAL 2017
(The Fiscal Year Ending March 31, 2018 under Japanese GAAP)
November 10, 2017
Company Name:
Asahi Broadcasting Corporation*
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:9405
URL http://asahi.co.jp/english/
Representative:
Satoshi Wakisaka, President and Chief Executive Officer
Inquiries:
Masato Kadota, Director, Financial Affairs Division
TEL: +81-6-6458-5321
Scheduled Date of Securities Report Filing: November 14, 2017
Scheduled Date of Dividend Payment Commencement: December 1, 2017
Preparation of Quarterly Supplementary Explanatory Materials: Yes
Quarterly Results Briefing Held: Yes (for institutional investors and analysts)* Asahi Broadcasting Corporation: ABC(Figures are rounded down to the nearest million yen unless otherwise stated.)
1. Consolidated Financial Results for the First Half of Fiscal 2017 (April 1, 2017 to September 30, 2017)(1) Consolidated Operating Results (Cumulative)(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Profit attributable toNet Sales
Operating Income
Ordinary Incomeowners of parent¥ million%¥ million%¥ million%¥ million%
First Half of
38,920(4.8)
829 (22.7)
1,021 (19.0)
614 (30.5)
Fiscal 2017
First Half of
40,867
3.7
1,072
0.9
1,260(3.0)
883
12.4
Fiscal 2016
Note: Comprehensive Income
First half of fiscal 2017
¥1,260 million (57.4%)
First half of fiscal 2016
¥800 million (5.8%)
Basic Earnings per
Share

Diluted Earnings perShare¥First Half ofFiscal 2017
First Half ofFiscal 2016

¥

15.04

―

21.63

―

(2) Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio¥ million¥ million%September 30,
100,515
61,77956.9
2017
March 31, 2017
101,979
61,274
55.6(Reference) Shareholders’ Equity September 30, 2017: ¥57,240 million
March 31, 2017:¥56,750 million
2. Dividends
Annual Dividend per Share
1Q-End2Q-End¥¥Fiscal 2016―
9.00
Fiscal 2017―
10.00
Fiscal 2017 (Forecast)
Notes: Revisions from recently announced dividend forecast: None

3Q-EndPeriod-End¥

Total―¥
17.00¥26.00

―

10.00

20.00

3. Consolidated Financial Results Forecasts for Fiscal 2017 (April 1, 2017 to March 31, 2018)(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Profit attributable
Basic Earnings
Net Sales
Operating Income Ordinary Income
to owners of parentper Share¥ million%¥ million%¥ million%¥ million%¥Full Fiscal Year80,500 (2.2)
4,100 (17.5)
4,300 (18.3)
2,600 (23.9)
63.67
Note: Revisions from recently announced performance forecast: None
* Notes(1) Changes in the number of important subsidiaries during the period: None
(2) The application of special accounting treatment for the preparation of the quarterly consolidated financialstatements: None
(3) Changes in accounting policies, accounting estimates and restatements
1) Changes in accounting policies in accordance with changes in accounting standards, etc.: None
2) Changes in accounting policies other than 1): None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding as of September 30, 41,833,000
the period-end (including treasury shares)
2017
shares2) Number of treasury shares as of the period-end September 30, 996,0872017
shares3) Average number of shares issued andSeptember 30, 40,836,913
outstanding for the period
2017
sharesMarch 31,41,833,000
2017
sharesMarch 31,996,087
2017
shares
September 30, 40,836,913
2016
shares* This financial report is exempt from the quarterly review procedure.
* Explanation concerning the appropriate use of forecasts and other special instructions(Caution regarding forward-looking statements, etc.)
Results forecasts and other forward-looking statements contained in this report are based on the assumptions, beliefs,and uncertainties in light of information available to the Company’s management as of the publication date and do
not represent promises by the Company or its management that these performance figures will be attained. Actualresults may differ materially from forecasts due to a variety of factors. Please refer to “1. Analysis of Operating
Results and Financial Position (3) Explanation of Forward-Looking Statements, including the Outlook forConsolidated Performance” on page 3 of the attached supplementary materials for information regarding theunderlying assumptions for financial results forecasts, as well as explanatory and other notes regarding the use offinancial results forecasts.
The Company will hold a briefing for institutional investors and analysts, scheduled for Friday, November 17, 2017.
A summary of the presentation materials to be distributed at this briefing shall be published on the Company’s
website after the event.

Supplementary Materials: Table of Contents
1.

2.

Analysis of Operating Results and Financial Position

2(1) Analysis of Operating Results

2(2) Analysis of Financial Position

3(3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated Performance3

Quarterly Consolidated Financial Statements and Primary Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income

3.

6

Quarterly Consolidated Statement of Income

6Quarterly Consolidated Statement of Comprehensive Income

7(3) Notes regarding Quarterly Consolidated Financial Statements

8(Going Concern Assumptions)8(Any Major Change in the Amount of Consolidated Shareholders’ Equity)

8(Segment Information, etc.)

8(Reference) Summary of Quarterly Non-Consolidated Financial Statements

9(1) Non-Consolidated Operating Results

9(2) Non-Consolidated Financial Position

9(3) Breakdown of Non-Consolidated Net Sales

91

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
Through the first half of fiscal 2017, which extended from April 1, 2017 to September 30, 2017, the Japanese
economy continued a moderate recovery trend, with corporate earnings holding steady and signs of improvement
emerging in personal consumption amid a brighter employment and personal income conditions.
Under these circumstances, in the broadcasting field where the Asahi Broadcasting Group (the Group) conducts itscore business, decreases in TV network time advertising revenue and other factors caused net sales to decrease. Inthe housing business, net sales were up due to an increase in revenue associated with the opening of a new housing
exhibition facility and other factors. In the golf business, revenue increased due to an increase in the number of golfcourse visitors and other factors. As a result of these factors, the Group’s net sales for the first half of fiscal 2017
decreased ¥1,947 million, or 4.8%, compared to the same period of the previous fiscal year and amounted to¥38,920 million.
From the cost standpoint, cost of sales decreased ¥1,751 million (6.2%) compared with the same period of theprevious fiscal year, to ¥26,484 million. Selling, general and administrative expenses increased ¥47 million (0.4%)
compared with the same period of the previous fiscal year, to ¥11,606 million. As a result of the above, operating
income for the period decreased ¥243 million, or 22.7%, to ¥829 million, while ordinary income totaled ¥1,021million, a decrease of ¥239 million, or 19.0%. Additionally, as extraordinary income, ¥20 million in subsidy related
to frequency band transfer and ¥24 million in gain on sales of investment securities held by subsidiaries wererecorded. As a result, income before income taxes were ¥1,066 million, a decrease of ¥376 million, or 26.1%, andprofit attributable to owners of parent was ¥614 million, a decrease of ¥269 million, or 30.5%.
Results by business segment are as follows:
Broadcasting BusinessNet sales in the broadcasting business totaled ¥32,974 million, down ¥2,040 million, or 5.8%, compared to the same
period of the previous fiscal year. The principal factors accounting for this decrease in revenue included decreases inTV network time advertising revenue and event income. On the other hand, operating expenses decreased 5.2%
overall from the same period of the previous fiscal year, owing to factors including decreases in event costs andnetwork expenses. As a result, operating income amounted to ¥412 million, a decrease of ¥223 million, or 35.1%,
from the same period of the previous fiscal year.
Housing BusinessIn the housing business, net sales amounted to ¥5,483 million, an increase of ¥65 million, or 1.2%, compared withthe same period of the previous fiscal year. A principal factor was an increase in revenue associated with the openingof a new housing exhibition facility. Meanwhile, operating expenses rose 2.6% due to increased costs from the new
housing exhibition facility opening and other factors. As a result, operating income amounted to ¥397 million, adecrease of ¥63 million, or 13.9%, from the same period of the previous fiscal year.

Golf BusinessNet sales in the golf business amounted to ¥461 million, an increase of ¥26 million, or 6.1%, compared with thesame period of the previous fiscal year. A principal factor was an increase in play revenue from higher visitor
numbers. On the other hand, operating expenses fell 2.9% because depreciation expenses that increased in theprevious fiscal year as a result of renovations to clubhouses decreased in the fiscal year under review. As a result,operating income amounted to ¥18 million, an increase of ¥43 million from the same period of the previous fiscalyear.

2(2) Analysis of Financial Position(Assets)
Consolidated current assets as of the end of the second quarter of fiscal 2017 were ¥33,171 million, ¥2,437 million
lower than at the end of the previous fiscal year (March 31, 2017). Non-current assets amounted to ¥67,344 million,¥972 million higher than at the end of the previous fiscal year. Total assets decreased ¥1,464 million, to ¥100,515
million. The decrease in total assets resulted from the decrease in cash and deposits associated with payments ofincome taxes payable and dividends from surplus.
(Liabilities)
Consolidated current liabilities stood at ¥10,556 million, ¥1,362 million lower than at the end of the previous fiscal
year, and non-current liabilities came to ¥28,179 million, ¥606 million below the level at the previous fiscal yearend. Total liabilities decreased ¥1,969 million, to ¥38,736 million. The principal reason for the decrease in liabilities
was the payment of income taxes payable.
(Net Assets)
Consolidated total net assets came to ¥61,779 million, ¥504 million higher than at the end of the previous fiscal year.
Although profit attributable to owners of parent reported for the period under review was ¥614 million, the Grouppaid a total of ¥694 million in dividends from surplus. In addition, due to an increase in the market value ofinvestment securities held by the Company, valuation difference on available-for-sale securities increased ¥285
million, and remeasurements of defined benefit plans increased ¥284 million.
(3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated Performance
As consolidated financial results during the first half of fiscal 2017 are trending within expected ranges, regarding
financial results forecasts of the full fiscal year, net sales, operating income, ordinary income, and profit attributableto owners of parent remain unchanged from the previous announcement.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of Yen)
March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Short-term investment securities
Inventories
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

September 30, 201717,082
12,530
1,650
2,148
2,204
(7)
35,60814,408
12,107
2,653
1,995
2,012
(6)
33,171

19,663
10,531
6,582
36,776

19,872
10,8586,872
37,604132744
118995172822112
1,106

17,805
11,034(241)
28,59866,371
101,979

17,901
10,969(237)
28,63367,344
100,515

(Millions of Yen)
March 31, 2017
Liabilities
Current liabilities
Short-term loans payable
Current portion of long term loans payable
Accounts payable - other
Income taxes payable
Provision
Other
Total current liabilities
Non-current liabilities
Long term loans payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total valuation and translation adjustments
Non-controlling interests
Total net assets
Total liabilities and net assets

5

September 30, 2017

100
－
5,538
1,266
104
4,908
11,918

－
40
6,016
422
42
4,034
10,556－
19,677
9,109
28,78640,705150
19,293
8,736
28,17938,736

5,299
3,695
48,191(500)
56,686

5,299
3,695
48,111(500)
56,606

2,985

3,270

(2,921)
64
4,523
61,274
101,979(2,637)633
4,539
61,779100,515

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
For the First Half of Fiscal 2016 and 2017
(Millions of Yen)First Half of Fiscal 2016
First Half of Fiscal 2017
(April 1, 2016
(April 1, 2017
to September 30, 2016)
to September 30, 2017)
Net sales
40,86738,920
Cost of sales
28,23526,484Gross profit
12,632
12,435
Selling, general and administrative expenses
11,55911,606
Operating income
1,072
829
Non-operating income
Interest income
1523
Dividends income
165
159
Other
52
38
Total non-operating income
233
221
Non-operating expenses
Interest expenses
74
Loss on disposal of non-current assets
1523
Business commencement expenses
20－
Other
1
2
Total non-operating expenses
4430
Ordinary income
1,260
1,021
Extraordinary income
Gain on sales of non-current assets
66－
Gain on sales of investment securities
24－
Subsidy116
20
Total extraordinary income
182
45
Income before income taxes
1,443
1,066
Income taxes
455
377
Profit988
689
Profit attributable to non-controlling interests
10474
Profit attributable to owners of parent
883614

6Quarterly Consolidated Statement of Comprehensive Income
For the First Half of Fiscal 2016 and 2017

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities, net of tax
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

First Half of Fiscal 2016
(April 1, 2016
to September 30, 2016)
9887(Millions of Yen)First Half of Fiscal 2017
(April 1, 2017
to September 30, 2017)
689(462)287

275

284(187)
800

571
1,260

695

1,183

10577

(3) Notes regarding Quarterly Consolidated Financial Statements(Going Concern Assumptions)Not applicable.
(Any Major Change in the Amount of Consolidated Shareholders’ Equity)
Not applicable.
(Segment Information, etc.)
Explanation of Measurements of Sales, Profit and Loss for Each Reportable Segment
First Half of Fiscal 2016 (April 1, 2016 to September 30, 2016)
Reportable Segment
BroadcastingHousingGolf ClubTotal(Millions of Yen)
Amounts
Recorded on
Quarterly
Adjustments Consolidated(Note 1)
Statement ofIncome(Note 2)

Sales
Revenues from externalcustomers
Transactions with othersegments
TotalSegment profit (loss)

35,014

5,418

435

40,867―40,867220

914243(243)―

35,234

5,427

449

41,111(243)40,867

635

461

(24)

1,072

―

1,072

Notes:
1. The adjustment of negative ¥243 million represents the amount of intersegment transaction elimination.
2. Segment profit (loss) refers to operating income recorded on the quarterly consolidated statement of income.
First Half of Fiscal 2017 (April 1, 2017 to September 30, 2017)
Reportable Segment
Broadcasting

Housing

Golf Club

Total(Millions of Yen)
Amounts
Recorded on
Quarterly
Adjustments Consolidated(Note 1)
Statement ofIncome(Note 2)

Sales
Revenues from externalcustomers
Transactions with othersegments

32,974

5,483

461

38,920―38,920244

1017272(272)

―

Total

33,2185,494

478

39,192(272)38,920

Segment profit

412

397

18829

―

829

Notes:
1. The adjustment of negative ¥272 million represents the amount of intersegment transaction elimination.
2. Segment profit refers to operating income recorded on the quarterly consolidated statement of income.

83. (Reference) Summary of Quarterly Non-Consolidated Financial Statements
First Half of Fiscal 2017 (April 1, 2017 to September 30, 2017)(1) Non-Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Net Sales
Operating IncomeOrdinary IncomeProfit¥ million%¥ million%¥ million%¥ million%
First Half of30,138(7.1)
390(56.2)679(43.5)483(50.5)
Fiscal 2017
First Half of32,450
2.789327.71,20219.8974
27.9
Fiscal 2016
(2) Non-Consolidated Financial Position
Total Assets¥ million
September 30, 201776,815
March 31, 201778,326

Net Assets¥ million
53,59353,526(3) Breakdown of Non-Consolidated Net Sales

Television broadcasting
business revenue
TimeSpot
Program sales
Subtotal
Radio broadcasting
business revenue
Other

First Half of Fiscal 2016
(April 1, 2016
to September 30, 2016)

First Half of Fiscal 2017
(April 1, 2017
to September 30, 2017)¥ million¥ million

Increase /(Decrease)¥ million%
Change%10,381
16,9591,251

9,54416,755
1,155(837)
(204)
(95)

(8.1)
(1.2)
(7.6)

28,592

27,455(1,136)

(4.0)

1,447

1,336(110)

(7.6)

2,411

1,346

(1,065)(44.2)

Total
32,45030,138(2,312)(7.1)
Note: Figures in the summary of quarterly non-consolidated financial statements are not subject to review in legally
mandated disclosure.

9