CONSOLIDATED FINANCIAL REPORTFOR FISCAL 2017
(The Fiscal Year Ended March 31, 2018 under Japanese GAAP)May 8, 2018
Company Name: Asahi Broadcasting Group Holdings Corporation Stock Exchange Listing: Tokyo Stock Exchange
Securities Code: 9405
URL https://corp.asahi.co.jp/en/
Representative: Susumu Okinaka, Representative Director and President
Inquiries:
Kengo Otsuka, General Manager, Financial Affairs Division
TEL: +81-6-6458-5321
Scheduled Date of Ordinary General Meeting of Shareholders: June 21, 2018
Scheduled Date of Dividend Payment Commencement: June 22, 2018
Scheduled Date of Securities Report Filing: June 22, 2018
Preparation of Annual Supplementary Explanatory Materials: Yes
Annual Results Briefing Held: Yes (for institutional investors and analysts)(Figures are rounded down to the nearest million yen unless otherwise stated.)
1. Consolidated Financial Results for Fiscal 2017 (April 1, 2017 to March 31, 2018)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Profit attributable to
Net Sales
Operating Income
Ordinary Income
owners of parent¥ million%¥ million%¥ million%¥ million%
Fiscal 2017
80,991(1.6)
4,250 (14.5)
4,539 (13.7)
2,691 (21.2)
Fiscal 2016
82,302
1.5
4,972
22.3
5,261
19.4
3,416
44.0
Note: Comprehensive Income
Fiscal 2017: ¥4,252 million (-4.9%)
Fiscal 2016: ¥4,469 million (—%)
Basic Earnings per Diluted Earnings
Share
per Share¥
Fiscal 2017
65.92
Fiscal 2016
83.66
(Reference) Equity in Earnings of Affiliates

Rate of return on
equityOrdinary
Income/Total
Assets

¥
%
—
4.5
—
6.2
Fiscal 2017: ¥— million
Fiscal 2016: ¥— million

Operating
Income/Net Sales

%
4.4
5.2

%
5.2
6.0

(2) Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio Net Assets per Share¥ million¥ million%¥
March 31, 2018
102,680
63,36360.0
1,509.06
March 31, 2017
101,979
61,27455.6
1,389.70(Reference) Shareholders’ Equity March 31, 2018: ¥61,625 million
March 31, 2017: ¥56,750 million(3) Consolidated Cash FlowsNet Cash Provided By Net Cash Provided By Net Cash Provided By(Used In) Operating(Used In) Investing(Used In) Financing
Activities
Activities
Activities¥ million¥ million¥ million
Fiscal 2017
4,803
(5,113)(2,260)Fiscal 2016
6,806
(579)
(1,202)Ending Balance ofCash and Cash
Equivalents¥ million
15,076
17,646

2. Dividends
Annual Dividend per Share
1Q-End2Q-End3Q-End Period-End

Total
Dividends

Total

PayoutRatio(Consolidated)

Ratio of
Dividends
to NetAssets(Consolidated)¥

Fiscal 2016
Fiscal 2017
Fiscal 2018
(Forecast)

¥

¥

¥

¥

¥ million

%

%

1,061
816

31.1
30.3

1.9
1.4

—
—

9.00
10.00

—
—

17.00
10.00

26.00
20.00

—

10.00

—

10.00

20.00

30.2

3. Consolidated Financial Results Forecasts for Fiscal 2018 (April 1, 2018 to March 31, 2019)(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 parent
per Share¥ million%¥ million%¥ million%¥ million%¥
Interim Period
39,500 (1.5)
500 (39.7)
700 (31.4)
1,300 111.6
31.83
Full Fiscal Year
81,000 0.0
2,700 (36.5)
3,000 (33.9)
2,700
0.3
66.12

* Notes(1) Changes in the number of important subsidiaries during the period: None(changes in specified subsidiaries resulting in a change in the scope of consolidation)(2) 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
(3) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding as of March 31,
the period-end (including treasury shares)
20182) Number of treasury shares as of the period-end March 31,
20183) Average number of shares issued andMarch 31,
outstanding for the period
201841,833,000
shares996,088
shares40,836,913
sharesMarch 31,2017
March 31,2017
March 31,2017

41,833,000
shares996,087
shares40,836,913
shares(Reference) Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for Fiscal 2017 (April 1, 2017 to March 31, 2018)(1) Non-Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Sales
Operating Income
Ordinary Income
Profit¥ million%¥ million%¥ million%¥ million%
Fiscal 2017
62,545(4.0)
2,649 (24.0)
3,022 (22.3)
2,018 (29.6)
Fiscal 2016
65,130
0.0
3,485
33.1
3,891
28.2
2,867
54.5
Basic Earnings per
Share
Fiscal 2017
Fiscal 2016

Diluted Earnings per
Share
¥
¥
49.43
—
70.21
—

(2) Non-Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio Net Assets per Share¥ million¥ million%¥
March 31, 201879,10954,78469.3
1,341.53
March 31, 201778,32653,52668.3
1,310.73(Reference) Shareholders’ Equity March 31, 2018: ¥54,784 million
March 31, 2017: ¥53,526 million* These consolidated financial results are outside the scope of audit by certified public accountants and audit
corporations* 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. Actual results
may differ materially from forecasts due to a variety of factors. Please refer to “1. Overview of Business Results, etc.
(4) Future Outlook” on page 4 of the attached supplementary materials for information regarding the underlying
assumptions for financial results forecasts, as well as explanatory and other notes regarding the use of financial results
forecasts.
The Company will hold a briefing for institutional investors and analysts, scheduled for Friday, May 18, 2018. 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.

Overview of Business Results, etc.

2(1) Overview of Business Results for the Fiscal Year under Review

2(2) Overview of Financial Position for the Fiscal Year under Review

3(3) Overview of Cash Flows for the Fiscal Year under Review

3(4) Future Outlook

4(5) Basic Policy and the Appropriation of Profits as well as Dividends for Fiscal 2017 and Fiscal 2018

4

Management Policy

5(1) Policies Fundamental to the Company’s Management

5(2) Management Targets

5(3) Medium- and Long-Term Management Strategies as well as Issues to Address

5

3.

Rationale behind the Choice of Accounting Standards

6

4.

Consolidated Financial Statements and Primary Notes

7(1) Consolidated Balance Sheet

7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

9(3) Consolidated Statement of Changes in Equity

11(4) Consolidated Statement of Cash Flows

13(5) Notes regarding Consolidated Financial Statements

15

2.

5.

6.

(Going Concern Assumptions)15(Segment Information)

15(Per Share Information)

17(Significant Events after Reporting Period)

17

Non-Consolidated Financial Statements

18(1) Balance Sheet

18(2) Statement of Income20(3) Statement of Changes in Equity

21

Other Information

25(1) Breakdown of Non-Consolidated Net Sales

25(2) Changes to the Officers of the Company

25

1

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Fiscal Year under Review
In fiscal 2017, which extended from April 1, 2017 to March 31, 2018, the Japanese economy continued a moderate
recovery trend, with corporate earnings holding steady and an improvement in income conditions.
Under these circumstances, in the broadcasting field where the Asahi Broadcasting Group (the Group) conducts itscore business, decreases in TV spot advertising sales and other factors caused net sales to decrease. In the housingbusiness, 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 golf course
visitors and other factors. As a result of these factors, the Group’s net sales for the fiscal year ended March 31, 2018
decreased ¥1,310 million, or 1.6%, compared to the previous fiscal year and amounted to ¥80,991 million.
From the cost standpoint, cost of sales decreased ¥782 million (1.5%) compared with the previous fiscal year, to¥53,005 million. Selling, general and administrative expenses increased ¥194 million (0.8%) compared with theprevious fiscal year, to ¥23,735 million. As a result of the above, operating income for the fiscal year decreased ¥722
million, or 14.5%, to ¥4,250 million, while ordinary income totaled ¥4,539 million, a decrease of ¥722 million, or
13.7%. Additionally, as extraordinary income, ¥80 million in gain on sales of investment securities held by subsidiariesand ¥20 million in subsidy related to frequency band transfer were recorded. Furthermore, as extraordinary loss, ¥70
million in special retirement expenses and ¥53 million in impairment loss associated with exhibitions for housing at
a subsidiary were recorded. As a result, income before income taxes were ¥4,517 million, a decrease of ¥954 million,
or 17.4%, and profit attributable to owners of parent was ¥2,691 million, a decrease of ¥724 million, or 21.2%.
Results by business segment are as follows:
Broadcasting BusinessIn the fiscal year under review, net sales in the broadcasting business totaled ¥68,645 million, down ¥1,923 million,
or 2.7%, compared to the previous fiscal year. The principal factors accounting for this decrease in revenue included
decreases in TV spot advertising sales and event income. On the other hand, operating expenses decreased 1.8% fromthe previous fiscal year, owing to factors including decreases in agency fee and event costs. As a result, operating
income amounted to ¥3,116 million, a decrease of ¥693 million, or 18.2%, from the previous fiscal year.
Housing BusinessIn the housing business, net sales amounted to ¥11,474 million, an increase of ¥550 million, or 5.0%, compared withthe previous fiscal year. Principal factors were increases in sales of real estate and revenue associated with the openingof a new housing exhibition facility. Meanwhile, operating expenses rose 6.3% due to cost price appropriationconsequent upon the sales of real estate, increased costs from the new housing exhibition facility opening, and otherfactors. As a result, operating income amounted to ¥1,083 million, a decrease of ¥60 million, or 5.3%, from theprevious fiscal year.

Golf BusinessNet sales in the golf business amounted to ¥871 million, an increase of ¥62 million, or 7.7%, compared with theprevious fiscal year. Principal factors were an increase in play revenue from higher number of visitors and an increase
in registration transfer fee income. On the other hand, operating expenses rose 1.8% due to increased course
management expenses and other factors. As a result, operating income amounted to ¥49 million, an increase of ¥30
million, or 160.7%, from the previous fiscal year.

2(2) Overview of Financial Position for the Fiscal Year under Review(Assets)
Total assets as of the end of the fiscal year under review were ¥102,680 million, ¥700 million higher than at the endof the previous fiscal year (March 31, 2017). This was primarily attributable to an increase of ¥2,152 million inproperty, plant and equipment owing to a ¥732 million increase in buildings and structures in line with the acquisitionof commercial real estate, despite a decrease of ¥1,618 million in current assets.
(Liabilities)
Total liabilities were ¥39,316 million, ¥1,389 million lower than at the end of the previous fiscal year. The principal
reasons for the decrease in liabilities were a decrease in net defined benefit liability and a decrease in the amountrecorded for income taxes payable.
(Net Assets)
Consolidated total net assets came to ¥63,363 million, ¥2,089 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 ¥2,691 million, the Grouppaid a total of ¥1,102 million in dividends from surplus. In addition, capital surplus increased ¥2,059 million while
non-controlling interests decreased ¥2,785 million in line with the additional acquisition of shares in consolidated
subsidiaries, etc.
(3) Overview of Cash Flows for the Fiscal Year under Review
For the fiscal year under review, net cash provided by operating activities totaled ¥4,803 million. Net cash used ininvesting activities was ¥5,113 million, and net cash used in financing activities came to ¥2,260 million.
Accounting for each of these activities, the ending balance of cash and cash equivalents stood at ¥15,076 million, adecrease of ¥2,569 million compared with the end of the previous fiscal year. In specific terms, cash flow activities
are presented as follows.
(Cash Flows from Operating Activities)
Net cash provided by operating activities was ¥4,803 million (an inflow of ¥6,806 million during the previous fiscal
year) due to the recording of income before income taxes and depreciation and amortization despite income taxes paid.
(Cash Flows from Investing Activities)
Net cash used in investing activities was ¥5,113 million (an outflow of ¥579 million during the previous fiscal year)
due to purchase of property, plant and equipment, purchase of investment securities, and other factors.
(Cash Flows from Financing Activities)
Net cash used in financing activities amounted to ¥2,260 million (an outflow of ¥1,202 million during the previous
fiscal year) due to cash dividends paid, payments from changes in ownership interests in subsidiaries, and other factors.

3

(Reference) Trends in Cash Flow-Related Indicators
Fiscal 2016

Fiscal 2017

Equity-to-asset ratio (%)

55.6

60.0

Market capitalization ratio (%)

30.4

35.0

0.1

0.1

526.5

550.7

Interest-bearing liabilities to cash flow ratio(years)Interest coverage ratio (times)
Equity-to-asset ratio: Shareholders’ equity / total assets
Market capitalization ratio: Market capitalization / total assets

Interest-bearing liabilities to cash flow ratio: Interest-bearing liabilities / cash flows
Interest coverage ratio: Cash flows / interest payments
Notes:
1.

Each index is calculated based on consolidated financial data.

2.

Market capitalization is calculated by multiplying the period-end closing share price with the number of sharesissued and outstanding as of the period-end (after deducting treasury shares).

3.

Cash flows from operating activities are used for cash flows.

4.

Interest-bearing liabilities include all interest-bearing liabilities under the liabilities section recorded on
consolidated balance sheet.

(4) Future Outlook
In the fiscal year ending March 31, 2019, the Japanese economy is expected to maintain a moderate recovery trend
due to projected improvement in the employment environment and income conditions and an increase in exports
owing to a recovery trend in overseas economies, but volatility in the financial markets due to the normalization ofmonetary policy in the US and Europe and the effects of economic policies by the United States administration are
also expected, with conditions likely to remain unclear. Under these circumstances, the Group will aim to improve
viewer ratings in the mainstay broadcasting business, while carrying out aggressive investments aimed at future
growth.
Net sales, operating income, ordinary income, and profit attributable to owners of parent for the interim period of
fiscal 2018 are projected to total ¥39.5 billion, ¥0.5 billion, ¥0.7 billion, and ¥1.3 billion, respectively. For the full
fiscal year, net sales, operating income, ordinary income, and profit attributable to owners of parent are forecast toreach ¥81.0 billion, ¥2.7 billion, ¥3.0 billion, and ¥2.7 billion, respectively.
(5) Basic Policy and the Appropriation of Profits as well as Dividends for Fiscal 2017 and Fiscal 2018
Asahi Broadcasting Group Holdings Corporation has positioned the appropriate return of profits to shareholders as
one of its most-important management priorities. In connection with the allocation of profits, the Company shallendeavor to provide fair distribution of profits commensurate with business results, under the basic policy for stable
and continuous dividend payments with a consolidated dividend payout ratio not to fall below 30% in parallel with aneffort to enhance and maintain its financial position as a responsible certified broadcasting holding company, and tokeep up adequate investment aiming at growth in the future.
For the fiscal year ended March 31, 2018, the Company plans to pay a period-end dividend of ¥10.00 per share inconsideration of the aforementioned policy and the business performance. Accounting for the interim dividend of¥10.00 per share paid, the annual dividend for fiscal 2017 comes in at ¥20.00 per share.
Turning to the fiscal year ending March 31, 2019, Asahi Broadcasting Group Holdings Corporation is forecasting aninterim dividend of ¥10.00 per share and a period-end dividend of ¥10.00 per share for an annual dividend of ¥20.00
per share.
42. Management Policy(1) Policies Fundamental to the Company’s Management
Under the management philosophy of “As a dynamic and creative organization, the Group continues to evolve while
adapting to changing social conditions and contributes to the development of society,” the Group aims to strengthen
its overall capabilities. We are making every effort to meet the expectations of all our stakeholders by contributing to
the improvement of enrichment and peace of mind of local communities and people’s lives and by being social andcultural leaders. In addition, the Group will demonstrate the strengths of its content and services, and we will takesteps to enhance group-wide corporate value by further strengthening our competitive power amid a rapidly changing
media environment.
(2) Management Targets
The Group is aiming to achieve an ordinary income to net sales ratio of 8.0% as its Group growth vision. In addition,
we are also working to improve return on equity (ROE) as an important management indicator, but the Company
will continue to actively consider providing capital policies that include specific figures based on the progress ofgrowth investment.
(3) Medium- and Long-Term Management Strategies as well as Issues to Address◇ Environment surrounding the Group
Positioning the broadcasting business through terrestrial television, radio, and CS broadcasting as its core business,
together with the golf business and housing business, the Group strives to enhance its corporate value as a “dynamic
and creative corporate organization”. However, the media environment is changing rapidly due to factors such asadvances in technology and diversification of devices, and a future decline in the importance of terrestrial television
is possible. In recent years, the Group has been working on structural reforms to deal with rapidly growing contentrelated businesses but establishing a structure that can swiftly respond to the changes of the future has become anecessity.
◇ The Group’s medium-term management plan
For the realization of the Group’s corporate philosophy, by striving to actively challenge toward new growth areas
together with a solid management foundation to respond to changes in the business environment, the Group growthvision aims for “consolidated net sales of ¥100.0 billion and an ordinary income to net sales ratio of 8.0%.” To thisend, as a way of indicating the Group’s medium-term growth strategy, the Group has formulated the “Asahi
Broadcasting Group’s 2018-2020 Medium-term Management Plan,” a new three-year management plan with the fiscal
year under review as the first fiscal year and covering fiscal year 2018 until fiscal year 2020. Taking the strengtheningof our broadcasting related business, the strengthening of our housing-related business and proactive investing for
growth as major themes, we will aim to achieve the following management targets.
・ Definitely achieve our target of “consolidated net sales of ¥89.0 billion and ordinary income of ¥6.0 billion”
in fiscal year 2020.
・ Invest in growth areas (investment ceiling of ¥20.0 billion) to achieve the Group’s Growth Vision.
・ Pursue a dividend payout ratio of 30% or higher.
・ Strive to improve ROE.
・ Target an overseas business sales ratio to consolidated net sales of 3% or more.
◇ Work style reforms
In order to ensure that all employees of the Group are able to perform their business in a healthy way that enables thefree flowing of creative ideas, we aim to promote a work innovation project and to achieve more productive work
style through the creation of new latitudes.
3. Rationale behind the Choice of Accounting Standards
5

To sustain comparability of consolidated financial statements between periods as well as between companies, theGroup shall, for the time being, prepare consolidated financial statements under Japanese GAAP.

64. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet(Millions of Yen)
March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Short-term investment securities
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery equipment and vehicles
Accumulated depreciation
Machinery equipment and vehicles, net
Tools furniture and fixtures
Accumulated depreciation
Tools furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

March 31, 201817,082
12,530
1,650
2,148
621
1,582
(7)
35,60814,412
13,009
2,101
2,169
610
1,692
(6)
33,98932,961(13,297)
19,663
18,101(13,504)
4,596
1,729
(1,219)509
10,531
639
(164)
474
1,000
36,776

34,645(14,249)
20,396
18,859(13,830)
5,028
1,701
(1,299)402
11,049
616
(293)
322
1,729
38,928

132
744
118
995

216
848
119
1,184

17,805
20
1,779
6,790
2,443
(241)
28,59866,371
101,979

18,376
9
1,635
6,212
2,579
(237)
28,576
68,690102,680

(Millions of Yen)
March 31, 2017
Liabilities
Current liabilities
Short-term loans payable
Current portion of long term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long term loans payable
Lease obligations
Net defined benefit liability
Long-term guarantee deposited
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

8

March 31, 2018

100
－
166
5,538
1,733
1,266
104
3,008
11,918

－
40
324
5,837
1,679
614
77
3,922
12,496－
325
19,677
7,706
1,076
28,78640,705130
118,0197,624
1,044
26,82039,316

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

5,299
5,754
49,780(500)
60,334

2,985

3,308

(2,921)
64
4,523
61,274
101,979(2,018)1,290
1,738
63,363
102,680

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Fiscal 2016
(April 1, 2016
to March 31, 2017)82,30253,78828,51423,541
4,972

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Loss on redemption of investment securities
Loss on investments in partnership
Business commencement expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on valuation of investment securities
Special retirement expenses
Total extraordinary loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9(Millions of Yen)
Fiscal 2017
(April 1, 2017
to March 31, 2018)
80,99153,00527,98523,735
4,250

275
111
387

292
96
389

12
20
3
37
20
3
98
5,261

8
25
－
50
－
15
99
4,539

66
－
196
262

－
80
20
101

51
1
－
52
5,471
1,831
(123)
1,708
3,763
346
3,416

53
－
70
123
4,517
1,431
48
1,479
3,037
345
2,691

Consolidated Statement of Comprehensive Income
Fiscal 2016
(April 1, 2016
to March 31, 2017)
3,763

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

10(Millions of Yen)
Fiscal 2017
(April 1, 2017
to March 31, 2018)
3,037

265

311

441

903

706
4,469

1,214
4,252

4,120

3,917

349

334

(3) Consolidated Statement of Changes in Equity
Fiscal 2016 (April 1, 2016 to March 31, 2017)
Shareholders’ equity
Capitalstock
Balance at the beginning of period
Changes of items during the period
Dividends from surplus
Profit attributable to owners ofparentPurchase of treasury stock
Change in treasury shares of parent
arising from transactions with noncontrolling shareholders
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

Balance at the beginning of period
Changes of items during the period
Dividends from surplus
Profit attributable to owners ofparentPurchase of treasury stock
Change in treasury shares of parent
arising from transactions with noncontrolling shareholders
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

Capitalsurplus

5,299

Retainedearnings

3,610

45,510(Millions of Yen)
Treasury
stock
(500)

Total
shareholders’equity53,919

(735)

(735)

3,416

3,416
－

85

85

－

85

2,681

－

2,766

5,299

3,695

48,191(500)

56,686

Valuation and translation adjustments
Valuation
Remeasuredifference
Total valuation
ments ofon availableand translation
definedfor-salebenefit plans adjustments
securities
2,722(3,362)(639)

Noncontrollinginterests
4,433

Total net
assets
57,713
(735)
3,416
－
85

263

441

704

89

793

263

441

704

89

3,560

2,985

(2,921)

64

4,523

61,27411

Fiscal 2017 (April 1, 2017 to March 31, 2018)
Shareholders’ equity
Capitalstock
Balance at the beginning of period
Changes of items during the period
Dividends from surplus
Profit attributable to owners ofparentPurchase of treasury stock
Change in treasury shares of parent
arising from transactions with noncontrolling shareholders
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

Balance at the beginning of period
Changes of items during the period
Dividends from surplus
Profit attributable to owners ofparentPurchase of treasury stock
Change in treasury shares of parent
arising from transactions with noncontrolling shareholders
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

Capitalsurplus

5,299

3,695

Retainedearnings
48,191(Millions of Yen)
Treasury
stock
(500)

Total
shareholders’equity56,686(1,102)(1,102)

2,691

2,691
(0)

2,059

(0)
2,059

－

2,059

1,589

(0)

3,648

5,299

5,754

49,780(500)

60,334

Valuation and translation adjustments
Valuation
Remeasuredifference
Total valuation
ments ofon availableand translation
definedfor-salebenefit plans adjustments
securities
2,985(2,921)64

Noncontrollinginterests
4,523

Total net
assets61,274(1,102)
2,691
(0)
2,059

323

903

1,226

(2,785)(1,559)

323

903

1,226

(2,785)

2,089

3,308

(2,018)

1,290

1,738

63,36312

(4) Consolidated Statement of Cash Flows(Millions of Yen)
Fiscal 2017
(April 1, 2017
to March 31, 2018)

Fiscal 2016
(April 1, 2016
to March 31, 2017)
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sales of property, plant andequipment
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on redemption of investment securities
Loss (gain) on investments in partnership
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from sales of short-term investment
securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing
activities

13

5,471
2,841
51

4,517
2,971
53

(5)

(3)

(968)
(275)
12

(1,174)
(292)
8

(66)

－

20
－
1
3
37

25
(80)
－
－
50

374

(479)

59

(20)

(378)

444

703
7,883
297
(12)
(1,362)
6,806

519
6,539
302
(8)
(2,030)
4,803

(760)
760
(854)

－
－
(100)

3,900

1,049

(3,312)(4,424)

565

7

(670)
(721)
799
(15)
16
(285)

(117)
(1,636)
231
(11)
24
(135)

(579)

(5,113)

Fiscal 2016
(April 1, 2016
to March 31, 2017)
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of lease obligations
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Beginning balance of cash and cash equivalents
Ending balance of cash and cash equivalents

14(Millions of Yen)
Fiscal 2017
(April 1, 2017
to March 31, 2018)

－
－
－
－
(735)
(76)
(292)

(100)
200
(30)
(0)
(1,102)
(67)
(167)

(97)

(993)

(1,202)
5,024
12,621
17,646(2,260)(2,569)17,646
15,076

(5) Notes regarding Consolidated Financial Statements(Going Concern Assumptions)Not applicable.
(Segment Information)
1. Description of Reportable Segments
The reportable segments of the Group are its constituent units for which separate financial information is available
and which are subject to periodic examination in order for the Board of Directors to determine the allocation ofmanagement resources and evaluate financial results.
The Group maintains three reportable segments with business activities undertaken primarily in the broadcasting,housing, and golf club business fields.
The broadcasting business comprises television, radio, and related broadcasting activities. The housing business ismade up of housing exhibition site operating and related activities. The golf club business includes golf club operating
activities.
2. Explanation of Measurements of Sales, Profit, Loss, Asset, Liability and Other Items for Each Reportable Segment
Fiscal 2016 (April 1, 2016 to March 31, 2017)(Millions of Yen)
Amounts
Recorded on
Adjustments Consolidated(Note 1)
Financial
Statements(Note 2)

Reportable Segment
Broadcasting

Housing

Golf Club

Total

Sales
Revenues from externalcustomers
Transactions with othersegments

70,568

10,924809

82,302—82,302

488

20

78

588

(588)

—

Total

71,057

10,945888

82,891(588)

82,302

Segment profit

3,809

1,143

19

4,972

—

4,972

Segment assets

78,95812,333

10,958102,250(270)

101,979

Other items
Depreciation and
—
2,219
528
93
2,841
2,841
amortization
Increase in property,—
plant and equipment
2,647
990
262
3,900
3,900
and intangible assets
Notes:
1. Adjustments are outlined as follows:(1) The adjustment to transactions with other segments of negative ¥588 million represents the amount of
intrasegment transaction elimination.
(2) The adjustment to segment assets of negative ¥270 million represents the amount of intrasegment receivables
and payables elimination.
2. Segment profit refers to operating income recorded on the consolidated statement of income.
3. Amortization and increases of long-term prepaid expenses are included in depreciation and amortization as wellas increase in property, plant and equipment and intangible assets.

15

Fiscal 2017 (April 1, 2017 to March 31, 2018)(Millions of Yen)
Amounts
Recorded on
Adjustments Consolidated(Note 1)
Financial
Statements(Note 2)

Reportable Segment
Broadcasting

Housing

Golf Club

Total

Sales
Revenues from externalcustomers
Transactions with othersegments

68,645

11,474871

80,991—80,991

527

22

62

612

(612)

—

Total

69,172

11,497934

81,604(612)

80,991

Segment profit

3,116

1,083

49

4,250

—

4,250

Segment assets

79,014

12,992

10,904

102,911(231)

102,680

Other items
Depreciation and
—
2,331
558
82
2,972
2,972
amortization
Increase in property,—
plant and equipment
3,014
2,428
34
5,477
5,477
and intangible assets
Notes:
1. Adjustments are outlined as follows:(1) The adjustment to transactions with other segments of negative ¥612 million represents the amount of
intrasegment transaction elimination.
(2) The adjustment to segment assets of negative ¥231 million represents the amount of intrasegment receivables
and payables elimination.
2. Segment profit refers to operating income recorded on the consolidated statement of income.
3. Amortization and increases of long-term prepaid expenses are included in depreciation and amortization as wellas increase in property, plant and equipment and intangible assets.

16

(Per Share Information)(Yen)
Fiscal 2016
(April 1, 2016
to March 31, 2017)
Net assets per share
Basic earnings per share

Fiscal 2017
(April 1, 2017
to March 31, 2018)

1,389.70

1,509.06

83.66

65.92

Notes:
1. Diluted earnings per share information has been omitted as there were no potential shares with a dilutive effect.
2. The basis for calculating basic earnings per share is presented as follows.
Fiscal 2016
(April 1, 2016
to March 31, 2017)

Fiscal 2017
(April 1, 2017
to March 31, 2018)

Basic earnings per share
Profit attributable to owners of parent (Millions ofYen)Amount not attributable to common shareholders(Millions of Yen)
Profit attributable to owners of parent related tocommon stock (Millions of Yen)
Average number of common stock shares issued andoutstanding during the period (Thousands of Shares)
3.

3,416

2,691

—

—

3,416

2,691

40,836

40,836The basis for calculating net assets per share is presented as follows:
March 31, 2017

March 31, 2018

Total net assets (Millions of Yen)

61,27463,363

Amount excluded from total net assets(Millions of Yen)

4,523

1,738

(Non-controlling interests)(4,523)(1,738)56,75061,62540,836

40,836

Net assets attributable to common stock as of the end of
the period (Millions of Yen)
Number of shares of common stock issued andoutstanding as of the end of the period calculated under
net assets per share (Thousands of Shares)(Significant Events after Reporting Period)
Not applicable.

175. Non-Consolidated Financial Statements(1) Balance Sheet(Millions of Yen)
March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Short-term investment securities
Program right
Supplies
Accounts receivable - other
Deferred tax assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Leased assets
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in other securities ofsubsidiaries and affiliates
Long-term
loans
receivable
fromemployees
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

18

March 31, 2018

11,353225
11,778
700
620
25
592
554
274
26,1258,920
238
12,088
1,401
620
29
483
535
381
24,70012,364
726
4,493
30
378
4,457
467
701
23,619

11,635
643
4,923
26
278
4,457
318
1,729
24,011

71
725
105
902

140
829
97
1,066

16,6304,556

17,137
5,572

535

777

20

9

5,230
946
(241)
27,67852,20078,326

5,025
1,044
(237)
29,32954,408
79,109(Millions of Yen)
March 31, 2017
Liabilities
Current liabilities
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for directors’ bonuses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Lease obligations
Provision for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for special depreciation
Reserve for advanced depreciation of
non-current assets
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

19

March 31, 2018

161
4,604
1,586
1,008
357
100
210
59
－
1,239
9,328

320
4,786
1,518
280
313
136
252
49
117
1,877
9,652

321
14,984117
48
15,471
24,799－14,624－48
14,672
24,325

5,299

5,299

3,515
95
3,610

3,515
95
3,610

450

450

353

265

122

122

37,4003,818
42,145(500)
50,55437,4004,822
43,061(500)
51,470

2,971

3,313

2,971
53,52678,326

3,313
54,784
79,109(2) Statement of Income
Fiscal 2016
(April 1, 2016
to March 31, 2017)65,13040,39524,734
21,2483,485

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Loss on investments in partnership
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Subsidy
Total extraordinary income
Extraordinary loss
Special retirement expenses
Total extraordinary loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit20(Millions of Yen)
Fiscal 2017
(April 1, 2017
to March 31, 2018)
62,54538,60023,944
21,294
2,649

25
366
84
477

34
374
56
464

12
20
37
2
71
3,891

7
25
50
9
92
3,022

196
196

20
20

－
－
4,087
1,344
(123)
1,220
2,867

70
70
2,973
882
72
954
2,018

(3) Statement of Changes in Equity
Fiscal 2016 (April 1, 2016 to March 31, 2017)

Capital stock
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Dividends from surplus
ProfitPurchase of treasury stock
Decrease by corporate division
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period

5,299

3,515

95

3,610

－
－
－
－
－

－

－

－

－

5,299

3,515

95

3,610

Legal
retainedearnings
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Dividends from surplus
ProfitPurchase of treasury stock
Decrease by corporate division
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period(Millions of Yen)
Shareholders’ equity
Capital surplus
Legal capital Other capital Total capitalsurplussurplussurplus450

Reserve for
specialdepreciation
442

Shareholders’ equity
Retained earnings
Other retained earnings
Reserve foradvanceddepreciation
Generalof nonreserve
current
assets122

37,400(88)

Retainedearnings
brought
forwardTotal
retainedearnings

2,033

40,448

88

－

(735)
2,867
(435)

(735)
2,867
－
(435)

－

(88)

－

－

1,784

1,696

450

353

122

37,4003,818

42,14521

Shareholders’ equity
Treasurystock
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Dividends from surplus
ProfitPurchase of treasury stock
Decrease by corporate division
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period

(500)

Total
shareholders’equity48,858(Millions of Yen)
Valuation and translation
adjustments
Total
Total net
Valuation
valuationassetsdifference on
andavailable-for-saletranslation
securities
adjustments
2,712

2,712

51,570

－

－

(735)
2,867
－
(435)

(735)
2,867
－
(435)
259

259

259

－

1,696

259

259

1,955

(500)

50,554

2,971

2,971

53,52622

Fiscal 2017 (April 1, 2017 to March 31, 2018)

Capital stock
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Dividends from surplus
ProfitPurchase of treasury stock
Decrease by corporate division
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period

5,299

3,515

95

3,610

－
－
－
－
－

－

－

－

－

5,299

3,515

95

3,610

Legal
retainedearnings
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Dividends from surplus
ProfitPurchase of treasury stock
Decrease by corporate division
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period(Millions of Yen)
Shareholders’ equity
Capital surplus
Legal capital Other capital Total capitalsurplussurplussurplus450

Reserve for
specialdepreciation
353

Shareholders’ equity
Retained earnings
Other retained earnings
Reserve foradvanceddepreciation
Generalof nonreserve
current
assets122

37,400(88)

Retainedearnings
brought
forwardTotal
retainedearnings

3,818

42,14588－(1,102)
2,018(1,102)
2,018
－
－

－

(88)

－

－

1,004

916

450

265

122

37,4004,822

43,06123

Shareholders’ equity
Treasurystock
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Dividends from surplus
ProfitPurchase of treasury stock
Decrease by corporate division
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period

(500)

(0)

Total
shareholders’equity50,554(Millions of Yen)
Valuation and translation
adjustments
Total
Total net
Valuation
valuationassetsdifference on
andavailable-for-saletranslation
securities
adjustments
2,971

2,971

53,526－－(1,102)
2,018
(0)
－

(1,102)
2,018
(0)
－
341

341

341

(0)

916

341

341

1,257

(500)

51,470

3,313

3,313

54,78424

6. Other Information(1) Breakdown of Non-Consolidated Net Sales
Fiscal 2016
(April 1, 2016
to March 31, 2017)

Fiscal 2017
(April 1, 2017
to March 31, 2018)

Millions of Yen
Television broadcasting
business revenue
Time

20,276

Spot

35,752Millions of Yen

Increase /(Decrease)%
ChangeMillions of Yen%

19,968

(308)

(1.5)

34,923

(829)

(2.3)

Program sales

2,235

2,149

(85)

(3.8)

Subtotal
Radio broadcasting
business revenue
Other

58,26457,041(1,223)

(2.1)

2,842

2,637

(204)

(7.2)

4,023

2,866

(1,156)(28.8)

65,13062,545(2,585)

(4.0)

Total

(2) Changes to the Officers of the Company
Please refer to the “Notice of Changes in Personnel,” announced on May 8, 2018. (Available in Japanese only.)25