Consolidated Financial Report for the Second Quarter of Fiscal 2020
(The Fiscal Year Ended March 31, 2021 under Japanese GAAP)
November 6, 2020
Asahi Broadcasting Group
Company Name:
Stock Exchange Listing: Tokyo Stock Exchange
Holdings Corporation
Securities Code: 9405
URL https://corp.asahi.co.jp/en/
Representative: Susumu Okinaka, Representative Director and President
Inquiries:
Hirokazu Ueda, Manager, Financial Affairs Division
TEL: +81-6-6458-5321
Scheduled Date of Securities Report Filing: November 12, 2020
Scheduled Date of Dividend Payment Commencement: December 1, 2020
Preparation of Quarterly Supplementary Explanatory Materials: Yes
Quarterly 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 the First Half of Fiscal 2020 (April 1, 2020 to September 30, 2020)(1) Consolidated Operating Results (Cumulative)(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Profit attributable to
Net Sales
Operating Income
Ordinary Income
owners of parent¥ million%¥ million%¥ million%¥ million%
First Half of
33,077 (17.8)(1,118)
—
(900)
—
(604)
—
Fiscal 2020
First Half of40,228
2.4
1,365
38.0
1,507
26.2
866 (42.5)
Fiscal 2019
Note: Comprehensive Income
First half of fiscal 2020:¥-24 million (— %)First half of fiscal 2019:¥480 million (-77.1%)
Basic Earnings per
Share

Diluted Earnings per
Share¥First Half of
Fiscal 2020
First Half of
Fiscal 2019¥(14.74)

—

21.17

—

(2) Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio¥ million¥ million%
September 31,
119,631
68,72654.3
2020
March 31, 2020
114,786
69,091
56.8(Reference) Shareholders’ Equity September 30, 2020: ¥65,007 million
March 31, 2020:¥65,230 million
2. Dividends
Annual Dividend per Share
1Q-End2Q-End¥3Q-End¥Fiscal 2019—
9.00
Fiscal 2020—
5.00
Fiscal 2020 (Forecast)
Note: Revisions from recently announced dividend forecast: Yes

Period-End
¥

Total
¥

¥

—

9.00

18.00

—

5.00

10.00

3. Consolidated Financial Results Forecasts for Fiscal 2020 (April 1, 2020 to March 31, 2021)(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%¥
Full Fiscal Year
72,500 (12.6)
200 (94.1)
500 (86.2)
300 (86.8)
7.31
Note: Revision from recently announced performance forecast: None
* Notes(1) Changes in the number of important subsidiaries during the period: None
(2) Application of special accounting treatment for the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, accounting estimates and restatements
1) Changes in accounting policies in accordance with changes in accounting standards, etc.: None
2) Changes in accounting policies other than 1): None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding as of September 30,
the period-end (including treasury shares)
20202) Number of treasury shares as of the period-end September 30,
20203) Average number of shares issued and
September 30,
outstanding for the period
2020

41,833,000
shares802,674
shares
41,003,210
sharesMarch 31,2020
March 31,2020
September 30,
201941,833,000
shares850,078
shares40,933,158
shares* This financial report is exempt from the quarterly review procedure.
* Explanation concerning the appropriate use of forecasts and other special instructions(Caution regarding forward-looking statements, etc.)
Results forecasts and other forward-looking statements contained in this report are based on the assumptions, beliefs,
and uncertainties in light of information available to the Company’s management as of the publication date and do not
represent promises by the Company or its management that these performance figures will be attained. Actual results
may differ materially from forecasts due to a variety of factors. Please refer to “1. Analysis of Operating Results andFinancial Position (3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated
Performance” on page 3 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 (teleconference), scheduled for Friday,
November 13, 2020. The document to be used at this briefing shall be published on the Company’s website at 10:00
a.m. on the day of the event.

Supplementary Materials: Table of Contents
1.

2.

Analysis of Operating Results and Financial Position(1) Analysis of Operating Results(2) Analysis of Financial Position(3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated Performance
Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(2)Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
Quarterly Consolidated Statement of Comprehensive Income(3) Notes regarding Quarterly Consolidated Financial Statements(Going Concern Assumptions)(Any Major Change in the Amount of Consolidated Shareholders’ Equity)(Segment Information, etc.)(Significant Events after Reporting Period)

1

2
2
3
3
4
4
6
6
7
8
8
8
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1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
In the first half of fiscal 2020, which extended from April 1, 2020 to September 30, 2020, the Japanese economy
showed a significant downturn due to the spread of COVID-19, as with economies overseas. Though there were signsof resumption of economic activity, the economy failed to recover fully as it was still difficult to forecast when
COVID-19 would recede.
Under these circumstances, net sales of the broadcasting field where the Asahi Broadcasting Group (the Group)
conducts its core business decreased due to a large decrease in TV spot advertising sales, the mainstay of the business.
Net sales of the housing business were down due to the reduction of exhibition fees during the period of facility
closures as a measure against COVID-19 and other factors. Net sales of the golf business decreased due to a decreasein play revenue owing to a decrease in the number of visitors attributable to the spread of COVID-19 and other factors.
As a result of these factors, the Group’s net sales for the first half of fiscal 2020 decreased ¥7,151 million, or 17.8%,
compared to the same period of the previous fiscal year and amounted to ¥33,077 million.
From the cost standpoint, cost of sales decreased ¥3,538 million (13.2%) compared with the same period of theprevious fiscal year, to ¥23,358 million. Selling, general and administrative expenses decreased ¥1,128 million (9.4%)
compared with the same period of the previous fiscal year, to ¥10,836 million. As a result of the above, operating
income decreased ¥2,484 million to an operating loss of ¥1,118 million, while ordinary income decreased ¥2,408
million to an ordinary loss of ¥900 million. Additionally, as extraordinary loss, ¥57 million in special retirement
expenses and other losses were recorded. As a result, income before income taxes decreased ¥2,397 million to a loss
before income taxes of ¥970 million, and profit attributable to owners of parent decreased ¥1,470 million to a loss
attributable to owners of parent of ¥604 million.
Results by business segment are as follows:
Broadcasting BusinessNet sales in the broadcasting business totaled ¥27,740 million, down ¥6,452 million, or 18.9%, compared to the same
period of the previous fiscal year. The principal factor accounting for this decrease in revenue was a large decrease in
TV spot advertising sales, the mainstay of the business, due to the impact of the spread of COVID-19. On the other
hand, operating expenses decreased 13.6% from the same period of the previous fiscal year, due to factors including
a decrease in program expenses. As a result, operating income decreased ¥2,008 million from the previous fiscal year
to an operating loss of ¥1,008 million.
Housing BusinessIn the housing business, net sales amounted to ¥4,970 million, a decrease of ¥546 million, or 9.9%, compared withthe same period of the previous fiscal year. The principal factor was the reduction of exhibition fees during the periodof facility closures due to the spread of COVID-19. Meanwhile, operating expenses dropped 4.1% due to the impactof reduced sales promotion activities during the self-restraint period to prevent the spread of COVID-19. As a result,operating income amounted to ¥116 million, a decrease of ¥338 million, or 74.4%, from the same period of theprevious fiscal year.
Golf BusinessNet sales in the golf business amounted to ¥366 million, a decrease of ¥152 million, or 29.4%, compared with thesame period of the previous fiscal year. The principal factor was a large decrease in the number of visitors attributable
to the impact of COVID-19. On the other hand, operating expenses dropped a mere 8.1%, and as a result operating
income decreased ¥129 million from the previous fiscal year to an operating loss of ¥68 million.

2(2) Analysis of Financial Position(Assets)
Total assets as of the end of the second quarter of fiscal 2020 were ¥119,631million, ¥4,845 million higher than at theend of the previous fiscal year (March 31, 2020). This was primarily attributable to the impact of the acquisition of
investment securities in line with the issuance of bonds.
(Liabilities)
Total liabilities were ¥50,905 million, ¥5,210 million higher than at the end of the previous fiscal year. The principal
reasons for the increase in liabilities were the issuance of bonds and an increase in short-term loans payable.
(Net Assets)
Consolidated total net assets came to ¥68,726 million, ¥365 million lower than at the end of the previous fiscal year.
This was attributable to recognition of loss attributable to owners of parent and payment of dividends from surplus,
despite increases in valuation difference on available-for-sale securities and other account items.
(3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated Performance
The forecasts for net sales, operating income, ordinary income, and profit attributable to owners of parent remainunchanged from the previous consolidated financial forecasts for the full fiscal year.
On October 22, 2020, Quibi Holdings, LLC, whose securities are held as investment securities by Pegasus Tech
Ventures Company III, L.P., a specified subsidiary of the Company, announced that it would suspend its business in
the United States. The impact of this event on the consolidated financial results is currently under examination and it
is difficult to calculate it in a reasonable manner at present. Therefore, the consolidated financial forecasts for the full
fiscal year will be announced later when the detailed amounts are known and revisions become necessary.
The dividend forecasts for the full fiscal year were undetermined in the Consolidated Financial Report for Fiscal 2019
(The Fiscal Year Ended March 31, 2020 under Japanese GAAP) announced on May 22, 2020. The Board of Directors
held on November 6, 2020 resolved that the interim dividend for the current fiscal year (the end of the second quarter)
would be ¥5.00, down ¥4.00 from the previous year’s interim dividend of ¥9.00. The year-end dividend forecast is¥5.00, down ¥4.00 from the previous year’s year-end dividend, resulting in an annual dividend of ¥10.00 per share,
down ¥8.00 from the previous fiscal year.
The Company positions the return of profits to shareholders as one of its important measures for corporate management.
Therefore, it is important to deliver stable shareholder returns over the medium- to long-term, taking into comprehensive
consideration business performance and the level of equity required in the future.
For details on the dividend forecasts, please refer to the Notice of Dividends from Surplus and Revisions of Dividends
Forecasts announced today (November 6, 2020).
*The forecasts presented above were prepared based on the assumptions, beliefs, and uncertainties in light of
information available to the Group’s management as of the publication date. Actual results may turn out to be different
from the forecasts due to a variety of factors in the future.

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2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of Yen)
March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Short-term investment securities
Inventories
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance cost
Total deferred assets
Total assets

4

September 30, 2020

27,04812,825
204
4,668
262
2,314
(15)
47,30725,733
10,029
5,206
4,755
103
2,345
(15)
48,157

18,396
10,3638,185
36,944

17,996
10,363
7,898
36,259

1,195
144
22
122
1,485

1,153
364
20
116
1,655

17,29911,760(35)
29,02467,45421,091
12,452(34)
33,50971,42424
24
114,78649
49
119,631(Millions of Yen)
March 31, 2020
Liabilities
Current liabilities
Short-term loans payable
Current portion of long term loans payable
Current portion of bonds
Accounts payable-other
Income taxes payable
Provision
Other
Total current liabilities
Non-current liabilities
Long term loans payable
Bonds payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total valuation and translation adjustments
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

5

September 30, 2020

586
26
5,970
567
724
5,773
13,647

3,003
484
26
6,015
446
91
4,339
14,406931
5,065
16,512
9,538
32,04745,694974
10,052
16,0589,413
36,49850,9055,299
5,847
54,415(426)
65,1355,299
5,862
53,441(402)
64,201

1,941

2,589

(1,846)94
0
3,860
69,091
114,786(88)(1,694)806
0
3,718
68,726
119,631(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income
For the First Half of Fiscal 2019 and 2020

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
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 silent partnership
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on reversal of provision for loss on venue
closing
Total extraordinary income
Extraordinary loss
Special retirement expenses
Loss on valuation of stocks of subsidiaries andaffiliates
Total extraordinary loss
Income (loss) before income taxes
Income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

First Half of Fiscal 2019
(April 1, 2019
to September 30, 2019)40,22826,897
13,331
11,9651,365

6(Millions of Yen)First Half of Fiscal 2020
(April 1, 2020
to September 30, 2020)
33,07723,358
9,718
10,836(1,118)

10
132
83
225

5
106
153
265

8
4
64
6
83
1,507

12
24
10
47
(900)

-

22

-

22

80

57

-

33

80
1,426
559
867
1
866

91
(970)
(235)
(734)
(130)
(604)

Quarterly Consolidated Statement of Comprehensive Income
For the First Half of Fiscal 2019 and 2020

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities, net of tax
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

First Half of Fiscal 2019
(April 1, 2019
to September 30, 2019)867

7(Millions of Yen)First Half of Fiscal 2020
(April 1, 2020
to September 30, 2020)
(734)

(494)

648

-

(89)

107

152

(387)
480

710
(24)

479

107

1

(131)

(3) Notes regarding Quarterly Consolidated Financial Statements(Going Concern Assumptions)Not applicable.
(Any Major Change in the Amount of Consolidated Shareholders’ Equity)
Not applicable.
(Segment Information, etc.)
Explanation of Measurements of Sales, Profit or Loss for Each Reportable Segment
First Half of Fiscal 2019 (April 1, 2019 to September 30, 2019)(Millions of Yen)
Amounts
Recorded on
Quarterly
Adjustments Consolidated(Note 1, 2)
Statement of
Income(Note 3)

Reportable Segment
Broadcasting

Housing

Golf Club

Total

Sales
Revenues from externalcustomers
Transactions with othersegments

34,192

5,517

518

40,228—40,228

256

10

20

287

(287)

—

Total

34,4485,528

539

40,516(287)

40,228Segment profit

1,000

454

60

1,516

(150)

1,365

Notes:
1. The adjustment to transactions with other segments of negative ¥287 million represents the amount of
intrasegment transaction elimination.
2. The adjustment to segment profit of negative ¥150 million represents the amount of expenses which do not belong
to any reportable segment, mainly regarding development of new business and market.
3. Segment profit refers to operating income recorded on the quarterly consolidated statement of income.
First Half of Fiscal 2020 (April 1, 2020 to September 30, 2020)(Millions of Yen)
Amounts
Recorded on
Quarterly
Adjustments Consolidated(Note 1, 2)
Statement of
Income(Note 3)

Reportable Segment
Broadcasting

Housing

Golf Club

Total

Sales
Revenues from externalcustomers
Transactions with othersegments
Total
Segment profit or loss

27,7404,970

366

33,077—33,077

155

8

4

169

(169)

—

27,895

4,979

371

33,246(169)

33,077(1,008)

116

(68)

(960)

(157)

(1,118)Notes:
1. The adjustment to transactions with other segments of negative ¥169 million represents the amount of
intrasegment transaction elimination.
2. The adjustment to segment profit of negative ¥157 million represents the amount of expenses which do not belong
to any reportable segment, mainly regarding development of new business and market.
3. Segment profit or loss refers to operating income or loss recorded on the quarterly consolidated statement ofincome.

8(Significant Events after Reporting Period)
I. Share acquisition
As stated in the Consolidated Financial Report for the First Quarter of Fiscal 2020 (The Fiscal Year Ending March 31,
2021 under Japanese GAAP) announced on August 3, 2020, the Company resolved to acquire all shares of SILVER
LINK., Inc. to make it a subsidiary and concluded a share transfer agreement on July 14, 2020.
Based on the agreement, payment of the share price was completed on October 1, 2020.
(1) Summary of the business combinationi) Name of the acquired company and description of its business
Name of the acquired company

SILVER LINK., Inc.

Description of its business

Production of animations and othersii) Primary reasons for the business combination
Under the Medium-term Management Plan, the Company aims to become a comprehensive content business groupthrough possessing content with strong IPs and monetizing those content. The Company has determined that acquiring
the shares of SILVER LINK., Inc. to make it a subsidiary will contribute to strengthening the animation business,
which is one of the Company’s core businesses, and lead to an increase in the corporate value of both parties. The
Company thus concluded the share transfer agreement.
iii) Date of the business combination
October 1, 2020 (To be scheduled)iv) Legal form of the business combination
Acquisition of shares in exchange for cashv) Name of the company after the business combination
SILVER LINK., Inc.
vi) Ratio of voting rights acquired
Ratio of voting rights acquired

100%vii) Primary ground for determining the acquiring company
Due to the fact that the Company concluded a share transfer agreement to acquire 100% of the voting rights of SILVER
LINK., Inc. through share acquisition in exchange for cash.
(2) Acquisition cost of the acquired company and the breakdown of considerations by type
Considerations for the acquisition
Acquisition Costs

Cash¥250 million¥250 million(3) Breakdown and amounts of major acquisition-related expenses
Advisory fees, commissions, etc.

¥29 million(4) Amount of goodwill arising from the business combination, reason for recognizing goodwill, and the method andthe period of amortization
They have not been confirmed at present.
(5) Amounts of assets acquired and liabilities assumed on the day of the business combination and their primary items
They have not been confirmed at present.
II. Valuation loss on investment securities held by Pegasus Tech Ventures Company III, L.P.
On October 22, 2020, Quibi Holdings, LLC, whose securities are held as investment securities by Pegasus Tech
Ventures Company III, L.P., a specified subsidiary of the Company, announced that it would suspend its business in
the United States. Due to this event, the Company may record a valuation loss on investment securities held by Pegasus
Tech Ventures Company III, L.P. (investment of US$25 million in Quibi Holdings, LLC).

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