CONSOLIDATED FINANCIAL REPORTFOR FISCAL 2016
(The Fiscal Year Ended March 31, 2017 under Japanese GAAP)May 10, 2017
Company Name:
Asahi Broadcasting Corporation*
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:9405
URL http://corp.asahi.co.jp/en/
Representative:
Satoshi Wakisaka, President and Chief Executive Officer
Inquiries:
Masato Kadota, Director, Financial Affairs Division
TEL: +81-6-6458-5321
Scheduled Date of Ordinary General Meeting of Shareholders: June 22, 2017
Scheduled Date of Dividend Payment Commencement: June 23, 2017
Scheduled Date of Securities Report Filing: June 23, 2017
Preparation of Annual Supplementary Explanatory Materials: Yes
Annual 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 Fiscal 2016 (April 1, 2016 to March 31, 2017)(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 2016
82,302
1.5
4,972
22.3
5,261
19.4
3,416
44.0
Fiscal 2015
81,0590.5
4,064 (13.2)
4,407
(8.8)
2,372
7.7
Note: Comprehensive Income
Fiscal 2016 ¥4,469 million (—%)
Fiscal 2015 ¥(66) million (—%)
Basic Earnings per Diluted Earnings Rate of return on
Share
per Share
equity¥Fiscal 2016
83.66
Fiscal 2015
58.11
(Reference) Equity in Earnings of Affiliates

¥
%
―
6.2
―
4.4
Fiscal 2016 ¥― million

Ordinary
Income/Total
AssetsOperating
Income/Net Sales

%
%
5.2
6.0
4.3
5.0
Fiscal 2015 ¥― million(2) Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio Net Assets per Share¥ million¥ million%¥
March 31, 2017
101,979
61,27455.6
1,389.70
March 31, 2016
99,596
57,71353.5
1,304.70(Reference) Shareholders’ Equity March 31, 2017: ¥56,750 million
March 31, 2016: ¥53,279 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 2016
6,806
(579)
(1,202)
Fiscal 2015
(126)
209
(1,860)Ending Balance ofCash and Cash
Equivalents¥ million
17,646
12,621

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

Total
Dividends

Total

PayoutRatio(Consolidated)

Ratio of
Dividends
to NetAssets(Consolidated)¥

Fiscal 2015
Fiscal 2016
Fiscal(Forecast)

2017

¥

¥

¥

¥

¥ million

%

%

735
1,061

31.0
31.1

1.4
1.9

―
―

9.00
9.00

―
―

9.00
17.00

18.00
26.00

―

10.00

―

10.00

20.00

31.4

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 to Basic Earnings per
Net Sales
Operating Income Ordinary Income
owners of parent
Share¥ million%¥ million%¥ million%¥ million%¥
Interim Period
39,100 (4.3)
1,000 (6.8)
1,100 (12.8)700 (20.8)
17.14
Full Fiscal Year80,500 (2.2)
4,100 (17.5)
4,300 (18.3)
2,600 (23.9)
63.67* 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)
20172) Number of treasury shares as of the period-end March 31,
20173) Average number of shares issued andMarch 31,
outstanding for the period
201741,833,000
shares996,087
shares40,836,913
sharesMarch 31,2016
March 31,2016
March 31,2016

41,833,000
shares996,087
shares40,836,913
shares(Reference) Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for Fiscal 2016 (April 1, 2016 to March 31, 2017)(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 2016
65,130
0.0
3,485
33.1
3,891
28.2
2,867
54.5
Fiscal 2015
65,127(1.2)
2,619 (23.6)
3,034 (17.6)
1,855
(6.1)
Basic Earnings per
Share
Fiscal 2016
Fiscal 2015

Diluted Earnings per
Share
¥
¥
70.21
―
45.45
―

(2) Non-Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio Net Assets per Share¥ million¥ million%¥
March 31, 201778,32653,52668.3
1,310.73
March 31, 2016
76,924
51,57067.0
1,262.84(Reference) Shareholders’ Equity March 31, 2017: ¥53,526 million
March 31, 2016: ¥51,570 million* These consolidated financial results are outside the scope of audit* 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 19, 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.

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 2016 and Fiscal 2017

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

7

4.

Consolidated Financial Statements and Primary Notes

8(1) Consolidated Balance Sheet

8(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

12(4) Consolidated Statement of Cash Flows

14(5) Notes regarding Consolidated Financial Statements

16

2.

5.

6.

(Going Concern Assumptions)16(Additional Information)

16(Segment Information, etc.)

16(Per Share Information)

19(Significant Events after Reporting Period)

19

Non-Consolidated Financial Statements

20(1) Balance Sheet

20(2) Statement of Income

22(3) Statement of Changes in Equity

23

Other Information

27(1) Breakdown of Non-Consolidated Net Sales

27(2) Changes to the Officers of the Company

27

1

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Fiscal Year under Review
In fiscal 2016, which extended from April 1, 2016 to March 31, 2017, the Japanese economy was on a moderate
recovery trend due to an improvement in the employment situation and income conditions. However, due to unstablefactors in overseas economies such as the withdrawal of the United Kingdom from the EU and policy trends from the
new United States president, the future outlook of the economy remains uncertain.
Under these circumstances, in the broadcasting field where the Asahi Broadcasting Group (the Group) conducts itscore business, increases in TV spot advertising sales and other factors caused net sales to increase. In the housingbusiness, net sales were up due to factors such as an increase in sales at an exhibition of housing-related facilities(HDC (Housing Design Center)). In the golf business, revenue decreased due to factors such as a decrease in thenumber of golf course visitors. As a result of these factors, the Group’s net sales for the fiscal year ended March 31,2017 increased ¥1,242 million, or 1.5%, compared to the previous fiscal year and amounted to ¥82,302 million.
From the cost standpoint, cost of sales decreased ¥166 million (0.3%) compared with the previous fiscal year, to¥53,788 million. Selling, general and administrative expenses increased ¥501 million (2.2%) compared with theprevious fiscal year, to ¥23,541 million. As a result of the above, operating income for the fiscal year increased ¥907
million, or 22.3%, to ¥4,972 million, while ordinary income totaled ¥5,261 million, an increase of ¥854 million, or
19.4%. Additionally, as extraordinary income, ¥66 million in gain on sales of non-current assets of subsidiaries and¥196 million in total in subsidy income related to development of relay stations to complement FM radio broadcasting
and frequency transition for broadcasting equipment were recorded. Furthermore, as extraordinary loss, ¥51 million
was recorded, primarily for impairment loss associated with exhibitions for housing at a subsidiary. As a result, income
before income taxes was ¥5,471 million, an increase of ¥754 million, or 16.0%, and profit attributable to owners ofparent was ¥3,416 million, an increase of ¥1,043 million, or 44.0%.
Results by business segment are as follows:
Broadcasting BusinessIn the fiscal year under review, net sales in the broadcasting business totaled ¥70,568 million, up ¥773 million, or
1.1%, compared to the previous fiscal year. The principal factors accounting for this increase in revenue included
increases in mainstay TV spot advertising sales and event income, in addition to higher revenue for broadcasting
revenue from commercial sales in CS broadcasts at subsidiaries. On the other hand, operating expenses decreased
0.3% overall from the previous fiscal year, owing to factors including a decrease in television programming expenses.
As a result, operating income amounted to ¥3,809 million, an increase of ¥1,027 million, or 37.0%, from the previous
fiscal year.
Housing BusinessIn the housing business, net sales amounted to ¥10,924 million, an increase of ¥499 million, or 4.8%, compared withthe previous fiscal year. Although sales of the housing business concerning housing exhibitions decreased, overallsales increased due to factors such as sales contributions from an exhibition for housing-related facilities (HDC
Nagoya) opened in March 2016. Meanwhile, operating expenses rose 6.9% due to factors such as higher housingbusiness expenses and HDC business expenses. As a result, operating income amounted to ¥1,143 million, a decreaseof ¥135 million, or 10.6%, from the previous fiscal year.
Golf BusinessNet sales in the golf business amounted to ¥809 million, a decrease of ¥30 million, or 3.7%, compared with theprevious fiscal year. A decline in the number of visitors caused play revenue to decrease. On the other hand, operating
expenses declined 2.2% due to lower selling expenses and depreciation expenses resulting since there was no2

anniversary business as there was during the previous fiscal year, etc.. As a result, operating income amounted to ¥19
million, an increase of ¥15 million, or 418.5%, from the previous fiscal year.
(2) Overview of Financial Position for the Fiscal Year under Review(Assets)
Consolidated current assets as of the end of the fiscal year under review were ¥35,608 million, ¥3.5 billion higher thanat the end of the previous fiscal year (March 31, 2016). Non-current assets amounted to ¥66,371 million, ¥1,116
million lower than at the end of the previous fiscal year. Total assets increased ¥2,383 million, to ¥101,979 million.
The increase in total assets resulted mainly from an increase in cash and deposits.
(Liabilities)
Consolidated current liabilities stood at ¥11,918 million, ¥713 million lower than at the end of the previous fiscal year,
and non-current liabilities came to ¥28,786 million, ¥463 million below the level at the previous fiscal year-end. Total
liabilities decreased ¥1,176 million, to ¥40,705 million. The principal reasons for the decrease in liabilities were adecrease in accounts payable – other, a decrease in net defined benefit liability, and a decrease in lease obligations
following lease contract expirations.
(Net Assets)
Consolidated total net assets came to ¥61,274 million, ¥3,560 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 ¥3,416 million, the Grouppaid a total of ¥735 million in dividends from surplus. In addition, due to an increase in the market value of investment
securities held by the Company, valuation difference on available-for-sale securities increased ¥263 million, andremeasurements of defined benefit plans increased ¥441 million.
(3) Overview of Cash Flows for the Fiscal Year under Review
For the fiscal year under review, net cash provided by operating activities totaled ¥686 million. Net cash used ininvesting activities was ¥579 million, and net cash used in financing activities came to ¥1,202 million.
Accounting for each of these activities, the ending balance of cash and cash equivalents stood at ¥17,646 million, an
increase of ¥5,024 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 ¥6,806 million, a ¥6,932 million increase from an outflow of ¥126
million during the previous fiscal year. This result was largely attributable to a lower decrease in net defined benefit
liability.
(Cash Flows from Investing Activities)
Net cash used in investing activities was ¥579 million, a ¥788 million decrease from an inflow of ¥209 million during
the previous fiscal year. This result was largely attributable to a decrease in proceeds from sales of short-term
investment securities.
(Cash Flows from Financing Activities)
Net cash used in financing activities decreased ¥658 million (35.4%) year on year, amounting to ¥1,202 million. The
principal components were a decrease in outflows due to repayments of lease obligations.

3

(Reference) Trends in Cash Flow-Related Indicators
Fiscal 2015

Fiscal 2016

Equity-to-asset ratio (%)

53.5

55.6

Market capitalization ratio (%)

28.0

30.4

Interest-bearing liabilities to cash flow ratio(years)—0.1

Interest coverage ratio (times)

—

526.5

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.
5. As cash flows from operating activities were negative for fiscal 2015, the interest-bearing liabilities to cash flow
ratio and the interest coverage ratio are not shown.
(4) Future Outlook
In the fiscal year ending March 31, 2018, the Japanese economy is expected to maintain a moderate recovery trend
due to projected improvement in the employment environment and an increase in exports as overseas economies
recover, but the effects of economic policies by the United States administration and political trends in Europe arealso expected, with conditions likely to remain unclear. Under these circumstances, the Group will aim to increase not
only TV business revenue in the mainstay broadcasting business via improving viewer ratings, but also throughexpanding profits in the overall segment. Furthermore, the Group will carry 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 2017 are projected to total ¥39.1 billion, ¥1.0 billion, ¥1.1 billion, and ¥0.7 billion, respectively. For the full
fiscal year, net sales, operating income, ordinary income, and profit attributable to owners of parent are forecast toreach ¥80.5 billion, ¥4.1 billion, ¥4.3 billion, and ¥2.6 billion, respectively.
(5) Basic Policy and the Appropriation of Profits as well as Dividends for Fiscal 2016 and Fiscal 2017
Asahi Broadcasting has positioned the appropriate return of profits to shareholders as one of its most-importantmanagement priorities. In connection with the allocation of profits, the Company shall endeavor 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 an effort to enhance andmaintain its financial position as a responsible broadcasting business operator, and to keep up adequate investment
aiming at growth in the future.
For the fiscal year ended March 31, 2017, the Company plans to pay a period-end dividend of ¥17.00 per share inconsideration of the aforementioned policy and the business performance. Accounting for the interim dividend of¥9.00 per share paid, the annual dividend for fiscal 2016 comes in at ¥26.00 per share.

4Turning to the fiscal year ending March 31, 2018, Asahi Broadcasting is forecasting an interim 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.
2. Management Policy(1) Policies Fundamental to the Company’s Management
The Group maintains a corporate philosophy that emphasizes the importance of responding accurately to change while
evolving on an ongoing basis. As a dynamic and creative corporate group, our overarching mission is to contribute to
the growth and development of society. Guided by this corporate philosophy, we strive to hone our comprehensive
strengths as a group. In its mainstay broadcasting business, the Group is working diligently to fulfill its role andresponsibilities as backbone media. In this context, we are making every effort to enrich local communities and cultural
pursuits based on an unwavering commitment to peace and freedom.
Even amid a rapidly changing media environment, we continue to observe the highest ethical standards whilegarnering the trust of our viewing and listening audience as well as advertisers and sponsors. Coming together as one,we will take steps to hone our content production capabilities and strengthen to expand to enhance our corporate value.
(2) Management Targets
The Group strives to lift television viewer ratings and radio listener ratings in its broadcasting business activities.
Complementing these endeavors, the Group engages in operations that prioritize the concentrated allocation ofmanagement resources and expenditure efficiency. Through these means, we are working to increase the profit ratio.
In addition, we continue to do our utmost to meet the expectations of shareholders. As a part of these efforts, we areworking to improve return on equity.
The fiscal year under review marks the final fiscal year of the “Group Medium-Term Management Plan 2015-2017,”
which seeks to advance foundation maintenance. In these three years, the Company is in the process of implementing
reforms to its revenue structure, aiming to expand broadcasting-related businesses and overseas businesses whileadvancing preparations for transition to a certified broadcasting holding company. As a result, the Company is not at
a stage where it can provide target figures, etc., for capital efficiency. The Company will continue to actively consider
providing capital measures that include specific figures from its next medium-term management plan onward.
(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 mainstay
business, together with the golf business and housing business, the Group strives to enhance its corporate value as adynamic and creative corporate group. 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. Structural reforms that can swiftly respond to such change has become a necessity.
◇ The Group’s current medium-term management plan
In the “Group Medium-Term Management Plan 2015-2017,” these three years are positioned as a period in whichemphasis will be placed on active investment in developing new contents and new businesses.
In 2015, the corporate venture capital firm, ABC DREAM VENTURES, Inc. was established, and it has begun tomake investments in venture firms.
In 2016, the Anime Business, Overseas Business, and Licensing and Product Sales Business of broadcasting-related
businesses were spun off, and the businesses were continued by ABC ANIMATION, INC., ABC INTERNATIONAL
INC., and ABC RIGHTS BUSINESS, INC., which are collectively supervised by newly established ABC FRONTIERHOLDINGS, INC.
In spring of 2017, ABC HORIZON PTE. LTD., a local subsidiary in Singapore, began operations.
5Such initiatives to maintain and manage the foundation were promoted to enable the Group to expand its businessscope, while creating structures that can rapidly respond to changes in the times.
◇ Toward a certified broadcasting holding company structure
Additionally, at a Board of Directors meeting in February 2017, the Group resolved a policy to transition to a certified
broadcasting holding company structure in April 2018. Historically, the Group had devoted all of its energy to
improving corporate value primarily via broadcasting. In the future, the Broadcasting Business will remain importantand be the largest revenue generating business for the Group. However, moving forward, the times dictate that growthcannot be achieved only with broadcasting, and it is necessary to make further efforts in diverse areas outside ofbroadcasting. The Group determined that it would be preferable to make active and flexible management decisions
looking at each group company from a wide perspective and propose strategies that are optimal for the entire group,and thus decided to transition to a certified broadcasting holding company structure.
◇ The shape of a certified broadcasting holding company structure
A certified broadcasting holding company structure is a structure allowed under the Broadcast Act to allow for groupmanagement via a holding company for the flagship Broadcasting Business. To this point, eight companies, including
broadcasters located in Tokyo, have transitioned, and the Company will be the ninth. By utilizing the company split
scheme under the Companies Act, a new company will be established to conduct broadcasting businesses for televisionand radio, and for the Broadcasting Business currently conducted by Asahi Broadcasting, television will be succeededby the Asahi Television Broadcasting Corporation(tentative), and radio will be succeeded by the Asahi Radio
Broadcasting Corporation(tentative). The present Asahi Broadcasting Corporation will not hold its own broadcasting
license, instead transitioning to a certified broadcasting holding company that conducts group management, etc., andit will also maintain its listing on the First Section of the Tokyo Stock Exchange. Under this holding company, allcompanies that conduct business under the Asahi Broadcasting Group will be sister companies, including Asahi
Television Broadcasting Corporation(tentative), Asahi Radio Broadcasting Corporation(tentative), Sky-A, Inc., andABC Development Corporation.
Additionally, the Group chose “Asahi Broadcasting Group Holdings Corporation” as the name of the holding company
to signify that it is a group in which each group company cooperates to achieve growth.
◇ What the Group strives to become
The Asahi Broadcasting Group Holdings Corporation will formulate group management strategies and media
expansion strategies, support business execution through sharing strategies with group companies, and heighten
management functions across the group. Group companies that conduct business will utilize their respective uniquestrengths while increasing competitiveness with close cooperation across the group, and aim to contribute to improving
groupwide corporate value, including through expansion into new business areas.
For television and radio to expand in both media and business through utilizing the characteristics of their respective
media, it will be necessary to quickly establish and execute strategies from unique perspectives. The joint management
structure of television and radio, which the Group has held for many years, had the benefit of symbiotic sharing andsupporting of production structures and expenses, but also the disadvantage of difficulty in ascertaining and analyzing
respective business conditions in areas such as income and expenses, making it difficult to gain a “clear understandingof management.” As a result, it was decided to establish the two companies of Asahi Television Broadcasting
Corporation(tentative) and Asahi Radio Broadcasting Corporation(tentative), splitting and succeeding the businesses.
Through having two independent companies, management duties and responsibilities will be clarified, while also
increasing independence. This is not to turn away from the strengths of joint management of television and radio, but
to achieve growth across the group through strong cooperation between every member of the group.
(Additionally, for details regarding the transition to a certified broadcasting holding company structure, please see
6

“Conclusion of Absorption-type Demerger Agreement Accompanying Transition to Certified Broadcasting Holding
Company Structure and Partial Amendments to the Articles of Incorporation (Amendments to Trade Name andBusiness Objectives)” announced on May 10, 2017. (Available in Japanese only.)
3. Rationale behind the Choice of Accounting Standards
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.

74. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of Yen)
March 31, 2016
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

8

March 31, 2017

11,857
12,904
4,397
850
559
1,548
(9)
32,10817,082
12,530
1,650
2,148
621
1,582
(7)
35,60833,571(12,494)
21,077
17,319(12,817)
4,501
1,626
(1,164)462
11,2397,529(6,640)889
231
38,401

32,961(13,297)
19,663
18,101(13,504)
4,596
1,729
(1,219)509
10,531
639
(164)
474
1,000
36,776

145
－
137
282

132
744
118
995

18,101
23
1,766
6,999
2,157
(244)
28,80367,487
99,596

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

(Millions of Yen)
March 31, 2016
Liabilities
Current liabilities
Short-term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
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

9March 31, 2017

100
904
5,981
1,647
693
113
3,191
12,632

100
166
5,538
1,733
1,266
104
3,008
11,9189
20,486
7,850
903
29,25041,882

325
19,677
7,706
1,076
28,78640,7055,299
3,610
45,510(500)
53,9195,299
3,695
48,191(500)
56,686

2,722

2,985

(3,362)(639)
4,433
57,71399,596(2,921)
64
4,523
61,274
101,979

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Fiscal 2015
(April 1, 2015
to March 31, 2016)
81,05953,954
27,10423,0394,064

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
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

10(Millions of Yen)
Fiscal 2016
(April 1, 2016
to March 31, 2017)82,30253,78828,51423,541
4,972

329
146
476

275
111
387

40
51
－
15
－
26
133
4,407

12
20
3
37
20
3
98
5,261

－
172
137
309

66
－
196
262

－
－
－
4,717
1,457
536
1,993
2,723
350
2,372

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

Consolidated Statement of Comprehensive Income
Fiscal 2015
(April 1, 2015
to March 31, 2016)
2,723

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

11(Millions of Yen)
Fiscal 2016
(April 1, 2016
to March 31, 2017)
3,763

144

265

(2,935)441(2,790)
(66)

706
4,469

(417)

4,120

350

349

(3) Consolidated Statement of Changes in Equity
Fiscal 2015 (April 1, 2015 to March 31, 2016)
Shareholders’ equity
Capitalstock
Balance at the beginning of period
Changes of items during the period
Dividends from surplus
Profit attributable to owners ofparentChange 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 ofparentChange 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

43,995(Millions of Yen)
Treasury
stock
(500)

Total
shareholders’equity52,404

(857)

(857)

2,372

2,372

－

－

1,515

－

1,515

5,299

3,610

45,510(500)

53,919Valuation and translation adjustments
Valuation
Remeasure- Total valuationdifference
ments ofon availableand translation
definedfor-saleadjustments
benefit planssecurities
2,577
(427)
2,150

Noncontrollinginterests
4,154

Total net
assets58,709
(857)
2,372

145

(2,935)(2,789)279(2,510)145(2,935)(2,789)

279

(995)

2,722

(3,362)

(639)

4,433

57,71312

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 ofparentChange 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 ofparentChange 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
Remeasure- Total valuationdifference
ments ofon availableand translation
definedfor-saleadjustments
benefit planssecurities
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

61,27413

(4) Consolidated Statement of Cash Flows(Millions of Yen)
Fiscal 2016
(April 1, 2016
to March 31, 2017)

Fiscal 2015
(April 1, 2015
to March 31, 2016)
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 - trade
Decrease (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

14

4,717
3,299
－

5,471
2,841
51

13

(5)

(5,769)
(329)
40

(968)
(275)
12

－

(66)

51
(172)
－
－
15

20
－
1
3
37

164

374

(31)

59

58

(378)

(945)
1,111
342
(40)
(1,540)
(126)

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

－
500
(1,000)

(760)
760
(854)

5,600

3,900

(3,508)(3,312)

－

565

(42)
(1,843)
625
(13)
19
(128)

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

209

(579)

(Millions of Yen)
Fiscal 2016
(April 1, 2016
to March 31, 2017)

Fiscal 2015
(April 1, 2015
to March 31, 2016)
Cash flows from financing activities
Increase (decrease) in short-term loans payable
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

15

70
(857)
(71)
(1,001)

－
(735)
(76)
(292)

－

(97)

(1,860)(1,777)
14,398
12,621(1,202)
5,024
12,621
17,646

(5) Notes regarding Consolidated Financial Statements(Going Concern Assumptions)Not applicable.
(Additional Information)(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The “Implementation Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan
Guidance No. 26, March 28, 2016) has been applied from the fiscal year under review.
(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.

162. Explanation of Measurements of Sales, Profit, Loss, Asset, Liability and Other Items for Each Reportable
Segment
Fiscal 2015 (April 1, 2015 to March 31, 2016)(Millions of Yen)
Amounts
Reportable Segment
Recorded on
Adjustments Consolidated(Note 1)
Financial
Broadcasting
Housing
Golf Club
Total
Statements(Note 2)
Sales
Revenues from externalcustomers
Transactions with othersegments

69,794

10,424840

81,059―81,059

432

26

52

510

(510)

―

Total

70,227

10,450892

81,570(510)

81,059Segment profit

2,781

1,279

3

4,064

―

4,064

Segment assets

76,89011,776

11,181

99,847(251)

99,596

Other items
Depreciation and
2,739
461
98
3,299
―
3,299
amortization
Increase in property,
plant and equipment
2,267
1,880
327
4,474
―
4,474
and intangible assets
Notes:
1. Adjustments are outlined as follows:(1) The adjustment to transactions with other segments of negative ¥510 million represents the amount of
intrasegment transaction elimination.
(2) The adjustment to segment assets of negative ¥251 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.

17

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.

18

(Per Share Information)(Yen)
Fiscal 2015
(April 1, 2015
to March 31, 2016)
Net assets per share
Basic earnings per share

Fiscal 2016
(April 1, 2016
to March 31, 2017)

1,304.70

1,389.70

58.11

83.66

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 2015
(April 1, 2015
to March 31, 2016)

Fiscal 2016
(April 1, 2016
to March 31, 2017)

Basic earnings per share
Profit attributable to owners of parent (Millions of Yen)
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.

2,372

3,416

―

―

2,372

3,416

40,836

40,836The basis for calculating net assets per share is presented as follows:
March 31, 2016

March 31, 2017

Total net assets (Millions of Yen)

57,713

61,274

Amount excluded from total net assets(Millions of Yen)

4,433

4,523

(Non-controlling interests)(4,433)(4,523)53,27956,75040,836

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.

195. Non-Consolidated Financial Statements(1) Balance Sheet(Millions of Yen)
March 31, 2016

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 from
employees
Long-term loans receivable fromsubsidiaries and affiliates
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

20

March 31, 2017

7,994
214
12,207
3,197
752
28
545
487
308
25,736

11,353225
11,778
700
620
25
592
554
274
26,125

12,879
828
4,397
21
355
4,457
877
231
24,04912,364
726
4,493
30
378
4,457
467
701
23,619

70
－
122
192

71
725
105
902

17,096
3,758

16,630
4,556

279

535

23

20

100

－

5,275
652
(241)
26,94551,18776,924

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

(Millions of Yen)
March 31, 2016
Liabilities
Current liabilities
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for directors’ bonuses
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

21

March 31, 2017

898
5,221
1,510
382
151
88
393
52
1,452
10,151

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

－
15,150－51
15,20225,353321
14,984117
48
15,471
24,799

5,299

5,299

3,515
95
3,610

3,515
95
3,610

450

450

442

353

122

122

37,4002,033
40,448(500)
48,85837,4003,818
42,145(500)
50,554

2,712

2,971

2,712
51,57076,924

2,971
53,52678,326

(2) Statement of Income
Fiscal 2015
(April 1, 2015
to March 31, 2016)
65,127
41,56723,55920,9402,619

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
Gain on sales of investment securities
Subsidy
Total extraordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit22(Millions of Yen)
Fiscal 2016
(April 1, 2016
to March 31, 2017)65,13040,39524,734
21,248
3,485

56
362
114
533

25
366
84
477

39
41
15
21
118
3,034

12
20
37
2
71
3,891

172
137
309
3,344
919
569
1,488
1,855

－
196
196
4,087
1,344
(123)
1,220
2,867

(3) Statement of Changes in Equity
Fiscal 2015 (April 1, 2015 to March 31, 2016)

Capital stock
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Adjustment to reserve due tochange in tax rates
Dividends from surplus
ProfitDecrease by company split
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
Adjustment to reserve due tochange in tax rates
Dividends from surplus
ProfitDecrease by company split
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
517

Shareholders’ equity
Retained earnings
Other retained earnings
Reserve foradvanceddepreciation
Generalof nonreserve
current
assets119

37,400(86)
103Retainedearnings
brought
forwardTotal
retainedearnings

962

39,450

86

－

(13)

－

(857)
1,855

(857)
1,855
－

－

(75)

3

－

1,070

998

450

442

122

37,4002,033

40,44823

Shareholders’ equity
Treasurystock
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Adjustment to reserve due tochange in tax rates
Dividends from surplus
ProfitDecrease by company split
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period

(500)

Total
shareholders’equity47,859Valuation and translation
adjustments
Total
Valuation
valuationdifference on
andavailable-for-saletranslation
securities
adjustments
2,568

2,568

－

(Millions of Yen)
Total net
assets50,428

－

－

－

(857)
1,855
－

(857)
1,855
－
144

144

144

－

998

144

144

1,142

(500)

48,858

2,712

2,712

51,57024

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
Adjustment to reserve due tochange in tax rates
Dividends from surplus
ProfitDecrease by company split
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
Adjustment to reserve due tochange in tax rates
Dividends from surplus
ProfitDecrease by company split
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

42,14525

Shareholders’ equity
Treasurystock
Balance at the beginning of
periodChanges of items during theperiodReversal of reserve for special
depreciation
Adjustment to reserve due tochange in tax rates
Dividends from surplus
ProfitDecrease by company split
Net changes of items other thanshareholders’ equity
Total changes of items during
the period
Balance at the end of period

(500)

Total
shareholders’equity48,858Valuation and translation
adjustments
Total
Valuation
valuationdifference on
andavailable-for-saletranslation
securities
adjustments
2,712

2,712

－

(Millions of Yen)
Total net
assets

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

53,52626

6. Other Information(1) Breakdown of Non-Consolidated Net Sales
Fiscal 2015
(April 1, 2015
to March 31, 2016)
Television broadcasting
business revenue
Time
Spot
Program sales
Subtotal
Radio broadcasting
business revenue
Other
Total

Fiscal 2016
(April 1, 2016
to March 31, 2017)

Increase /(Decrease)%
ChangeMillions of Yen

Millions of Yen

Millions of Yen%

21,197
34,7192,262

20,27635,752
2,235

(920)
1,033
(26)

(4.3)
3.0
(1.2)

58,17858,264

86

0.1

2,812

2,842

29

1.0

4,135

4,023

(112)

(2.7)

65,127

65,1303

0.0(2) Changes to the Officers of the Company
Please refer to the “Notice of Changes in Personnel,” announced on May 10, 2017. (Available in Japanese only.)27