Consolidated Financial Report for the Second Quarter of Fiscal 2021
(The Fiscal Year Ended March 31, 2022 under Japanese GAAP)
November 8, 2021
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, 2021
Scheduled Date of Dividend Payment Commencement: December 1, 2021
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 2021 (April 1, 2021 to September 30, 2021)(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
40,889
23.6
1,234
—
1,539
—
1,133
—
Fiscal 2021
First Half of
33,077 (17.8)(1,118)
—
(900)
—
(604)
—
Fiscal 2020
Note: Comprehensive Income
First half of fiscal 2021:¥176 million (— %)First half of fiscal 2020:¥-24 million (— %)Basic Earnings per
Share

Diluted Earnings per
Share¥First Half of
Fiscal 2021
First Half of
Fiscal 2020

¥

27.61

—

(14.74)—(2) Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio¥ million¥ million%
September 30,
118,127
69,54355.9
2021
March 31, 2021
119,079
69,70055.5(Reference) Shareholders’ Equity September 30, 2021: ¥66,036 million
March 31, 2021:¥66,035 million
2. Dividends
Annual Dividend per Share
1Q-End2Q-End¥3Q-End¥Fiscal 2020—
5.00
Fiscal 2021—
7.00
Fiscal 2021 (Forecast)
Note: Revisions from recently announced dividend forecast: Yes

Period-End
¥

Total
¥

¥

—

5.00

10.00

—

6.00

13.00

3. Consolidated Financial Results Forecasts for Fiscal 2021 (April 1, 2021 to March 31, 2022)(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
84,000
7.2
2,900
7.6
3,200
5.5
2,100
—
51.14
Note: Revision from recently announced performance forecast: Yes* 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.: Yes
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)
2021
2) Number of treasury shares as of the period-end September 30,
2021
3) Average number of shares issued and
September 30,
outstanding for the period
2021

41,833,000
shares751,861
shares
41,051,407
sharesMarch 31,2021
March 31,2021
September 30,
2020

41,833,000
shares802,674
shares
41,003,210
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 (online), scheduled for Monday, November
15, 2021. The document to be used at this briefing shall be published on the Company’s website at 9:00 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)(Changes in accounting policies)(Segment Information, etc.)

1

2
2
3
3
4
4
6
6
7
8
8
8
9
10

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
In the first half of fiscal 2021, which extended from April 1, 2021 to September 30, 2021, the Japanese economy
remained under the prolonged influence of COVID-19 as the global economy did. Meanwhile, with the progress invaccination, there emerged signs of a gradual resumption of economic activity.
Under these circumstances, net sales of the broadcasting and content business, where the Asahi Broadcasting Group(the Group) conducts its core business, increased mainly due to an increase in TV spot advertising sales, the mainstayof the business. Net sales of the lifestyle business were up due to revenue from real estate sales. As a result of thesefactors, the Group’s net sales for the first half of fiscal 2021 increased ¥7,812 million, or 23.6%, compared to the same
period of the previous fiscal year and amounted to ¥40,889 million.
From the cost standpoint, cost of sales increased ¥4,364 million (18.7%) compared with the same period of theprevious fiscal year, to ¥27,723 million. Selling, general and administrative expenses increased ¥1,094 million(10.1%) compared with the same period of the previous fiscal year, to ¥11,930 million. As a result of the above,
operating income increased ¥2,353 million to ¥1,234 million, while ordinary income totaled ¥1,539 million, an
increase of ¥2,440 million. Additionally, ¥267 million of extraordinary income due to gain on sales of shares wasrecorded, while ¥56 million of extraordinary loss due to loss on valuation of investment securities was recorded.
As a result, income before income taxes were ¥1,750 million, an increase of ¥2,720 million, and profit attributable toowners of parent was ¥1,133 million, an increase of ¥1,737 million.
The Company resolved at a meeting of its Board of Directors held on May 12, 2021 to change the classification of its
reportable segments.
From the first quarter of fiscal 2021, the classification has been changed from the previous segments of thebroadcasting business, the housing business and the golf business in the previous fiscal year, to the broadcasting andcontent business and the lifestyle business.
Additionally, the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; hereinafter,“Revenue Recognition Accounting Standard”), etc. have been applied from the beginning of the first quarter of fiscal
2021. For details, please refer to “2. Quarterly Consolidated Financial Statements and Primary Notes (3) Notes
regarding Quarterly Consolidated Financial Statements (Changes in accounting policies) and (Segment Information,etc.).”
Results by business segment are as follows:
Broadcasting and Content BusinessNet sales in the broadcasting and content business totaled ¥33,954 million, up ¥7,625 million, or 29.0%, compared tothe same period of the previous fiscal year. The principal factor accounting for this increase in revenue was an increasein TV spot advertising sales, the mainstay of the business, which were largely affected by the spread of COVID-19 in
the previous fiscal year. Additionally, operating expenses increased 19.3% from the same period of the previous fiscal
year, due to factors including an increase in program expenses on account of the resumption of sport live broadcasting,which was cancelled or postponed in the previous fiscal year, and the relaxation of constraints on program production.
As a result, operating income amounted to ¥962 million, an increase of ¥2,066 million, from the same period of theprevious fiscal year.
Lifestyle BusinessIn the lifestyle business, revenue from real estate sales increased in the housing business. As a result, net sales
amounted to ¥6,934 million, an increase of ¥187 million, or 2.8%, compared with the same period of the previous
fiscal year. Operating income amounted to ¥412 million, an increase of ¥268 million, or 186.6%, from the same periodof the previous fiscal year.

2(2) Analysis of Financial Position(Assets)
Total assets as of the end of the second quarter of fiscal 2021 were ¥118,127 million, ¥952 million lower than at theend of the previous fiscal year (March 31, 2021). This was primarily attributable to a decrease in investment securities
as a result of a drop in the market value of shares the Company held.
(Liabilities)
Total liabilities were ¥48,583 million, ¥795 million lower than at the end of the previous fiscal year. The principal
reason for the decrease in liabilities was a decrease in accounts payable for equipment.
(Net Assets)
Consolidated total net assets came to ¥69,543 million, ¥156 million lower than at the end of the previous fiscal year.
This was attributable mainly to dividends from surplus and a decrease in valuation difference on available-for-salesecurities, while profit was recorded.
(3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated Performance
The Company upwardly revised its full-year consolidated financial results forecasts for net sales, operating income,ordinary income and profit attributable to owners of parent since broadcasting sales, which mainly consist of TV spot
advertising sales, increased from the previous forecast in the Company’s mainstay broadcasting business, and also
because of the effect of cost reductions.
Concerning the dividend forecasts for the full fiscal year, the interim dividend forecast (the end of the second quarter)was ¥5.00 and the year-end dividend forecast was ¥6.00 in the Consolidated Financial Report for Fiscal 2020 (TheFiscal Year Ended March 31, 2021 under Japanese GAAP) announced on May 12, 2021. The Company determinedthat the interim dividend (the end of the second quarter) would be ¥7.00, up ¥2.00 from ¥5.00. The year-end dividend
forecast remains unchanged from the initial forecast at ¥6.00.
The Company positions the appropriate return of profits to shareholders as one of its most important measures forcorporate management. Regarding the distribution of profits, we always consider the balance between strengthening
and maintaining our financial position and investing toward improved corporate value and toward our growthstrategies, comprehensively taking into account our financial results, dividend payout ratio, appropriate internal
reserves, and other factors in light of our position of responsibility as a certified broadcasting holding company.
For details on the revision of financial results forecasts and dividend, please refer to the Notice of Revision of Financial
Results Forecasts and Interim Dividend announced today (November 8, 2021).
The outlook presented above may significantly change due to external factors such as domestic and overseas economic
trends, as well as when COVID-19 comes to an end and the range of its impact. Should any event arise that affects
the financial results of the Group, the Company will promptly announce it.
Note: The forecasts presented above are based on information that is currently available to the Group and certain
assumptions that are judged to be reasonable. Actual results may differ from the forecasts due to various factors.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of Yen)
March 31, 2021
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, 2021

22,362
13,219
5,621
3,011
173
2,292
(15)
46,66425,197
11,749
3,320
2,674
84
3,528
(15)
46,53919,454
12,543
7,762
39,76019,046
12,544
7,727
39,318

1,145
503
1,203
142
2,995

1,219
367
1,139
127
2,853

18,606
11,042(33)
29,614
72,37018,17911,230(32)
29,37771,54844
44
119,079

39
39
118,127

(Millions of Yen)
March 31, 2021
Liabilities
Current liabilities
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, 2021

564
26
6,615
1,060
450
6,395
15,112

551
26
7,135
430
423
5,179
13,746

1,200
10,03914,111
8,915
34,26649,3782,099
10,026
13,669
9,042
34,837
48,583

5,299
5,862
52,910(402)
63,6705,299
5,874
53,673(376)
64,471

3,320

2,415

(129)
(825)
2365
3,664
69,700119,079

(128)
(721)
1,565
8
3,498
69,543
118,127

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income
For the First Half of Fiscal 2020 and 2021

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of investment securities
Gain on reversal of provision for loss on venue
closing
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries andaffiliates
Special retirement expenses
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 2020
(April 1, 2020
to September 30, 2020)
33,07723,358
9,718
10,836(1,118)

6(Millions of Yen)First Half of Fiscal 2021
(April 1, 2021
to September 30, 2021)
40,88927,723
13,165
11,930
1,234

5
106
47
105
265

5
91
190
55
343

12
24
10
47
(900)

16
13
8
39
1,539

22

267
-

22

267

-

56

33

-

57
91
(970)
(235)
(734)
(130)
(604)

56
1,750
772
977
(155)
1,133

Quarterly Consolidated Statement of Comprehensive Income
For the First Half of Fiscal 2020 and 2021

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 2020
(April 1, 2020
to September 30, 2020)
(734)

7

(Millions of Yen)First Half of Fiscal 2021
(April 1, 2021
to September 30, 2021)
977

648

(905)

(89)

0

152

103

710
(24)

(800)
176

107

332

(131)

(155)

(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(Changes in accounting policies)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,
2020; hereinafter “Revenue Recognition Accounting Standard”), etc. from the beginning of the first quarter of fiscal
2021. Accordingly, revenue is recognized when the control of promised goods or services is transferred to a customer
at an amount that the Company expects to receive in exchange for transferring the goods or services to the customer.
Major changes due to the application of the Revenue Recognition Accounting Standard, etc. are as follows:(1) Revenue recognition for agent transactions
The Company previously recognized revenue in the gross amount of consideration to be received from customers.
From fiscal 2021, for transactions in which the Group acts as an agent in the provision of goods or services tocustomers, revenue is recognized in the net amount of consideration to be received from customers, after deducting
the costs payable to third parties.
(2) Revenue recognition for transactions that do not require refunds
The Company previously recognized revenue in a lump sum at the time of receiving payments. From fiscal 2021, if
the Group’s performance obligation is considered to be for the transfer of goods or services in the future, revenue isrecognized at the time of the provision of the goods or services in the future.
(3) Revenue recognition for transactions in which the Company grants licenses
For some transactions in which the Company grants licenses, the Company previously recognized revenue at the timeof receiving payments or at the time of delivery, etc. From fiscal 2021, revenue is recognized (i) when a customer
becomes able to obtain benefit from the license through the use of the license, in cases where a performance obligation
is satisfied at a point in time based on each contract; (ii) over a period of time, such as the contract period, by following
the method to measure the progress towards complete satisfaction of a performance obligation as determined by eachcontract, in cases where the performance obligation is satisfied over time; or (iii) at a time when a customer recognizes
sales revenue, etc. or when a performance obligation is satisfied, whichever is later, in cases where the consideration
to be received for the grant of licenses is related to sales-based or usage-based royalties.
The application of the Revenue Recognition Accounting Standard, etc. follows the provisional treatment stipulated in
the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. The cumulative effect ofretrospectively applying the new accounting policy to the periods prior to the beginning of the first quarter is added
to or subtracted from retained earnings at the beginning of the first quarter, and the new accounting policy is applied
from the said beginning balance. However, applying the method stipulated in Paragraph 86 of the Revenue
Recognition Accounting Standard, the new accounting policy has not been retrospectively applied to the contracts inwhich almost all revenue was recognized under the previous accounting treatment prior to the beginning of the firstquarter. Additionally, applying the method stipulated in item (1) of Paragraph 86 of the Revenue Recognition
Accounting Standard, modifications to the contracts that had been made prior to the beginning of the first quarter were
accounted for based on terms and conditions that reflect all the modifications, and the resulting cumulative effect is
added to or subtracted from retained earnings at the beginning of the first quarter.
As a result, net sales for the first half of fiscal 2021 decreased ¥604 million, cost of sales decreased ¥478 million, andselling, general and administrative expenses decreased ¥277 million, while operating income, ordinary income andincome before income taxes each increased ¥151 million. Additionally, the beginning balance of retained earnings
decreased ¥165 million.
In addition, following the provisional treatment stipulated in Paragraph 28-15 of the Accounting Standard for
Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on the disaggregation ofrevenue from contracts with customers for the first half of fiscal 2020 is not presented.

9

(Segment Information, etc.)
Explanation of Measurements of Sales, Profit or Loss for Each Reportable Segment
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 andContent

Lifestyle

Total

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

26,3296,747

33,077—33,077

358

232

590

(590)

—

26,687

6,979

33,667(590)

33,077(1,104)

143

(960)

(157)

(1,118)Notes:
1. The adjustment to transactions with other segments of negative ¥590 million represents the amount ofintersegment transaction elimination.
2. The adjustment to segment profit or loss 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.
First Half of Fiscal 2021 (April 1, 2021 to September 30, 2021)(Millions of Yen)
Amounts
Recorded on
Quarterly
Adjustments
Consolidated(Note 1, 2) Statement of
Income(Note 3)

Reportable Segment
Broadcasting andContent

Lifestyle

Total

Sales
Revenues from externalcustomers
Transactions with othersegments

33,954

6,934

40,889—40,889

174

271

446

(446)

—

Total

34,1297,206

41,336(446)

40,889

962

412

1,374

(140)

1,234

Segment profit or loss

Notes:
1. The adjustment to transactions with other segments of negative ¥446 million represents the amount ofintersegment transaction elimination.
2. The adjustment to segment profit of negative ¥140 million represents the elimination of intersegment transactionsof ¥12 million and the amount of expenses which do not belong to any reportable segment of negative ¥152
million, mainly regarding development of new business and market.
3. Segment profit refers to operating income recorded on the quarterly consolidated statement of income.

10

2. Matters regarding Changes in Reportable Segments, Etc.
The Company resolved at a meeting of its Board of Directors held on May 12, 2021 to change the classification of its
reportable segments.
As announced in the 2021–2025 Medium-Term Management Strategy NEW HOPE, for the Group to grow as acomprehensive content business group that continues to evolve while adapting to changing social conditions andcontributes to the development of society as a dynamic and creative corporate organization, the Group decided tochange the classification of its reportable segments.
From the first quarter of fiscal 2021, the classification has been changed from the previous segments of thebroadcasting business, the housing business and the golf business in the previous fiscal year, to the broadcasting andcontent business and the lifestyle business.
Additionally, as described in “Changes in accounting policies,” the Revenue Recognition Accounting Standard, etc.
have been applied from the beginning of the first quarter of fiscal 2021, and the accounting treatment for revenue
recognition has been changed. Accordingly, the calculation method of profit or loss for the business segments has beenchanged in the same manner.
As a result of this change, for the first half of fiscal 2021, net sales for the broadcasting and content business decreased¥139 million and segment profit increased ¥169 million, while net sales for the lifestyle business decreased ¥464
million and segment profit decreased ¥18 million, when compared to the previous method.

11