Consolidated Financial Report for the Second Quarter of Fiscal 2019
(The Fiscal Year Ending March 31, 2020 under Japanese GAAP)
November 7, 2019
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:
Kenji Yamamoto, Manager, Financial Affairs Division
TEL: +81-6-6458-5321
Scheduled Date of Securities Report Filing: November 13, 2019
Scheduled Date of Dividend Payment Commencement: December 2, 2019
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 2019 (April 1, 2019 to September 30, 2019)(1) Consolidated Operating Results (Cumulative)(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Profit attributable toNet Sales
Operating Income
Ordinary Incomeowners of parent¥ million%¥ million%¥ million%¥ million%First Half of40,228
2.4
1,365
38.0
1,507
26.2
866 (42.5)
Fiscal 2019
First Half of
39,2800.9990
19.4
1,194
17.0
1,508 145.5
Fiscal 2018
Note: Comprehensive Income
First half of fiscal 2019:¥480 million (-77.1%)
First half of fiscal 2018:¥2,098 million (66.4%)
Basic Earnings per
Share

Diluted Earnings perShare¥First Half ofFiscal 2019
First Half ofFiscal 2018

¥

21.17

—

36.91

—

(2) Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio¥ million¥ million%
September 30,117,295
69,211
55.4
2019March 31, 2019107,788
67,04960.5(Reference) Shareholders’ Equity September 30, 2019: ¥65,028 million
March 31, 2019:¥65,223 million
2. Dividends
Annual Dividend per Share
3Q-EndPeriod-End
¥¥
¥
¥
—
10.00
—
18.00
Fiscal 2018—
9.00
Fiscal 2019—
9.00
Fiscal 2019 (Forecast)
Note: Revisions from recently announced dividend forecast: None
1Q-End2Q-End

Total
¥
28.00
18.00

3. Consolidated Financial Results Forecasts for Fiscal 2019 (April 1, 2019 to March 31, 2020)(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 Year85,000 3.7
3,700 (13.2)
4,000 (12.9)
2,500 (33.2)
61.04
Note: Revisions from recently announced performance forecast: Yes* Notes(1) Changes in the number of important subsidiaries during the period: Yes(changes in specified subsidiaries resulting in a change in the scope of consolidation)
Newly added: One company (Company name: DLE, Inc.)(2) Application of special accounting treatment for the preparation of the 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)
20192) Number of treasury shares as of the period-end September 30,
20193) Average number of shares issued and
September 30,
outstanding for the period
201941,833,000
shares850,018
shares40,933,158
sharesMarch 31,2019
March 31,2019
September 30,
201841,833,000
shares936,032
shares40,862,655
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 and Financial Position (3) Explanation of Forward-Looking Statements, including the Outlook for
Consolidated Performance” on page 3 of the attached supplementary materials for information regarding theunderlying assumptions for financial results forecasts, as well as explanatory and other notes regarding the use offinancial results forecasts.
The Company will hold a briefing for institutional investors and analysts, scheduled for Monday, November 18,
2019. A summary of the presentation materials to be distributed at this briefing shall be published on the Company’s
website after the event.

Supplementary Materials: Table of Contents
1.

2.

Analysis of Operating Results and Financial Position(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.)

12233446678889

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
In the first half of fiscal 2019, which extended from April 1, 2019 to September 30, 2019, while the Japanese
economy continued to show steady corporate earnings and employment trends, uncertainty grew in overseas
economies amid issues such as prolonged U.S-China trade friction and Brexit.
Under these circumstances, net sales of the broadcasting field where the Asahi Broadcasting Group (the Group)
conducts its core business, increased due to an increase in TV network sales and other factors despite a decrease in
TV sport advertising sales. Net sales of the housing business were down due to a decrease in revenue from sales ofreal estate and other factors. Net sales of the golf business increased due to an increase in play revenue and otherfactors. As a result of these factors, the Group’s net sales for the first half of fiscal 2019 increased ¥947 million, or2.4%, compared to the same period of the previous fiscal year and amounted to ¥40,228 million. From the cost
standpoint, cost of sales increased ¥281 million (1.1%) compared with the same period of the previous fiscal year, to¥26,897million. Selling, general and administrative expenses increased ¥291 million (2.5%) compared with thesame period of the previous fiscal year, to ¥11,965 million. As a result of the above, operating income for the period
increased ¥375 million, or 38.0%, to ¥1,365 million, while ordinary income totaled ¥1,507 million, an increase of¥312 million, or 26.2%. Additionally, as extraordinary loss, ¥80 million in special retirement expenses was recorded.
As a result, income before income taxes were ¥1,426 million, an increase of ¥334 million, or 30.7%, while profit
attributable to owners of parent was ¥866 million, a decrease of ¥641 million, or 42.5%, due to the lack of favorable
effects from tax effect accounting regarding corporate division and other factors in the same period of the previous
fiscal year.
Operating results by business segment are as follows:
Broadcasting BusinessNet sales in the broadcasting business totaled ¥34,192 million, up ¥1,665 million, or 5.1%, compared to the same
period of the previous fiscal year. The principal factor accounting for this increase in revenue is an increase in TV
network sales. On the other hand, operating expenses increased 4.0% from the same period of the previous fiscalyear, owing to factors including an increase in program expenses. As a result, operating income amounted to ¥100million, an increase of ¥343 million, or 52.2%, from the same period of the previous fiscal year.
Housing BusinessIn the housing business, net sales amounted to ¥5,517 million, a decrease of ¥788 million, or 12.5%, compared withthe same period of the previous fiscal year. The principal factor was the absence of sales of real estate in the period
under review. Meanwhile, operating expenses dropped 13.6% mainly as a reaction to the cost price appropriationconsequent upon the sales of real estate in the previous fiscal year. As a result, operating income amounted to ¥454
million, an increase of ¥8 million, or 2.0%, from the same period of the previous fiscal year.
Golf BusinessNet sales in the golf business amounted to ¥518 million, an increase of ¥71 million, or 15.9%, compared with thesame period of the previous fiscal year. Principal factors were an increase in play revenue from a higher number ofvisitors and an increase in registration fee income upon new membership recruitment. On the other hand, operating
expenses rose 3.0% due to increased labor expenses and depreciation and amortization. As a result, operating
income amounted to ¥60 million, an increase of ¥58 million from the same period of the previous fiscal year.

2(2) Analysis of Financial Position(Assets)
Total assets as of the end of the second quarter of fiscal 2019 were ¥117,295 million, ¥9,507 million higher than atthe end of the previous fiscal year (March 31, 2019). This was primarily attributable to an increase in cash anddeposits in line with the issuance of bonds and an increase in short-term loans payable.
(Liabilities)
Total liabilities were ¥48,083 million, ¥7,345 million higher than at the end of the previous fiscal year. The principal
reason 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 ¥69,211 million, ¥2,161 million higher than at the end of the previous fiscalyear. This was mainly attributable to an increase in non-controlling interests due to the consolidation of DLE, Inc.
and MASH CORPORATION.
(3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated Performance
Taking into account factors such as the year-on-year increase in consolidated net sales for the first half of fiscal 2019
and the effects of newly consolidated subsidiaries, the Group has made an upward revision to its forecast for netsales for the full fiscal year. No revisions have been made to operating income, ordinary income or profit attributableto owners of parent of the previous forecasts because the Group expects negative impacts of the deteriorating TV
spot advertising market on profit and other factors.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of Yen)
March 31, 2019
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, 201916,337
13,550
200
5,114
312
2,345
(9)
37,852

27,454
12,076
204
5,207
69
2,194
(16)
47,19019,721
10,7697,346
37,837

19,327
10,7697,280
37,3781,167
105
1091,381

1,189
86
368
123
1,767

18,406
12,320(10)30,716
69,93518,653
12,314(36)
30,93270,078

107,78826
26
117,295

(Millions of Yen)
March 31, 2019
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
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, 2019

240
6,475
934
113
5,365
13,129

3,310
562
23
6,466
511
48
4,445
15,367740
17,092
9,777
27,60940,738962
5,081
16,626
10,04732,71648,083

5,299
5,77553,241(470)
63,846

5,299
5,793
53,372(426)64,039

3,018

2,523

(1,641)1,377
1,826
67,049107,788(1,533)989
0
4,182
69,211
117,295

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
For the First Half of Fiscal 2018 and 2019

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
OtherTotal 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
Extraordinary loss
Special retirement expenses
Total extraordinary loss
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

First Half of Fiscal 2018
(April 1, 2018
to September 30, 2018)39,28026,616
12,664
11,673990

6(Millions of Yen)First Half of Fiscal 2019
(April 1, 2019
to September 30, 2019)40,22826,897
13,331
11,965
1,365

21142
63
227

10132
83225415222
1,194

8
464
683
1,507

103
103
1,091(445)
1,536
28
1,508

80
80
1,426
559
867
1866

Quarterly Consolidated Statement of Comprehensive Income
For the First Half of Fiscal 2018 and 2019Profit
Other 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 ofthe parent
Comprehensive income attributable to noncontrolling interests

First Half of Fiscal 2018
(April 1, 2018
to September 30, 2018)
1,536

7

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

257(494)

304

107

561
2,098(387)
480

2,069

479

28

1

(3) Notes regarding Quarterly Consolidated Financial Statements(Going Concern Assumptions)Not applicable.
(Any Major Change in the Amount of Consolidated Shareholders’ Equity)
Not applicable.

8

(Segment Information, etc.)
Explanation of Measurements of Sales, Profit and Loss for Each Reportable Segment
First Half of Fiscal 2018 (April 1, 2018 to September 30, 2018)(Millions of Yen)
Amounts
Recorded on
Quarterly
Adjustments
Consolidated(Notes 1, 2)
Statement ofIncome(Note 3)

Reportable Segment

Broadcasting

Housing

Golf Club

Total

Sales
Revenues from externalcustomers
Transactions with othersegments

32,5276,305

447

39,280—39,280294

1119325(325)

—

Total

32,821

6,317

467

39,605(325)

39,280

Segment profit

657

446

2

1,105(115)990

Notes:
1. The adjustment to transactions with other segments of negative ¥325 million represents the amount ofintrasegment transaction elimination.
2. The adjustment to segment profit of negative ¥115 million represents the amount of expenses which do notbelong 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 2019 (April 1, 2019 to September 30, 2019)(Millions of Yen)
Amounts
Recorded on
Quarterly
AdjustmentsConsolidated(Note 1, 2)
Statement ofIncome(Note 3)

Reportable Segment

Broadcasting

Housing

Golf Club

TotalSales
Revenues from externalcustomers
Transactions with othersegments

34,192

5,517

518

40,228―40,2282561020287(287)―Total

34,4485,528

539

40,516(287)40,228Segment profit

1,000454

60

1,516(150)1,365

Notes:
1. The adjustment to transactions with other segments of negative ¥287 million represents the amount ofintrasegment transaction elimination.
2. The adjustment to segment profit of negative ¥150 million represents the amount of expenses which do notbelong 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.

9