CONSOLIDATED FINANCIAL REPORTFOR THE SECOND QUARTER OF FISCAL 2018
(The Fiscal Year Ending March 31, 2019 under Japanese GAAP)
November 9, 2018
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:
Kengo Otsuka, General Manager, Financial Affairs Division
TEL: +81-6-6458-5321
Scheduled Date of Securities Report Filing: November 13, 2018
Scheduled Date of Dividend Payment Commencement: December 3, 2018
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 2018 (April 1, 2018 to September 30, 2018)(1) Consolidated Operating Results (Cumulative)(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Profit attributable toNet Sales
Operating IncomeOrdinary Incomeowners of parent¥ million%¥ million%¥ million%¥ million%
First Half of
39,2800.9990
19.4
1,194
17.0
1,508
145.5
Fiscal 2018
First Half of
38,920(4.8)
829 (22.7)
1,021 (19.0)
614 (30.5)
Fiscal 2017
Note: Comprehensive Income
First half of fiscal 2018:¥2,098 million (66.4%)
First half of fiscal 2017:¥1,260 million (57.4%)
Basic Earnings perShare

Diluted Earnings perShare¥First Half of
Fiscal 2018
First Half of
Fiscal 2017

¥

36.91

—

15.04

—

(2) Consolidated Financial Position
Total Assets
Net Assets
Equity-to-Asset Ratio¥ million¥ million%
September 30,106,113
65,69860.2
2018
March 31, 2018
102,680
63,36360.0(Reference) Shareholders’ Equity September 30, 2018: ¥63,874 million
March 31, 2018:¥61,625 million
2. Dividends
Annual Dividend per Share
3Q-EndPeriod-End¥
¥
¥
¥
—
10.00
—
10.00
Fiscal 2017—
10.00
Fiscal 2018—
10.00
Fiscal 2018 (Forecast)
Note: Revisions from recently announced dividend forecast: None
1Q-End2Q-EndTotal¥20.0020.00

3. Consolidated Financial Results Forecasts for Fiscal 2018 (April 1, 2018 to March 31, 2019)(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Profit attributable
Basic Earnings
Net Sales
Operating Income Ordinary Income
to owners of parent
per Share¥¥ million%¥ million%¥ million%¥ million%
Full Fiscal Year
81,000 0.0
2,700 (36.5)
3,000 (33.9)
2,700
0.3
66.05
Note: Revisions from recently announced performance forecast: None
* Notes(1) Changes in the number of important subsidiaries during the period: None
(2) The 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)
20182) Number of treasury shares as of the period-end September 30,
20183) Average number of shares issued andSeptember 30,
outstanding for the period
201841,833,000
shares936,022
shares40,862,655
sharesMarch 31,2018
March 31,2018
September 30,
201741,833,000
shares996,088
shares40,836,913
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. Actualresults 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 forConsolidated 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 Friday, November 16, 2018.
A summary of the presentation materials to be distributed at this briefing shall be published on the Company’s
website after the event.
(Transition to a certified broadcasting holding company structure)
The Company transited to a certified broadcasting holding company on April 1, 2018. On the same date, theCompany caused Asahi Television Broadcasting Split Preparatory Company which is wholly owned subsidiary of
the Company to succeed a part of the rights and obligations that the Company holds with respect to all businesses
excluding the radio broadcasting business, the group administrative management business, the real estate
management business and the solar power generation business as well as the Company caused Asahi Radio
Broadcasting Split Preparatory Company which is wholly owned subsidiary of the Company to succeed a part of therights and obligations that the Company holds with respect to the radio broadcasting business through an absorptiontype company split in accordance with the Agreement concluded on May 10, 2017 and approved at ordinary generalshareholders meeting on June 22, 2017. Further, the Company changed the trade name to Asahi Broadcasting GroupHoldings Corporation, Asahi Television Broadcasting Split Preparatory Company changed the trade name to AsahiTelevision Broadcasting Corporation, and Asahi Radio Broadcasting Split Preparatory Company changed the tradename to Asahi Radio Broadcasting Corporation on the same date respectively.

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)(Additional Information)(Segment Information, etc.)

122334466788889

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
In the first half of fiscal 2018, which extended from April 1, 2018 to September 30, 2018, the Japanese economy
continued a moderate recovery trend, with corporate earnings holding steady and an improvement in income
conditions, despite concern regarding the outlook of the economy due to worldwide trade friction.
Under these circumstances, net sales of the broadcasting field where the Asahi Broadcasting Group (the Group)
conducts its core business, decreased due to a decrease in TV spot advertising sales and other factors. Net sales ofthe housing business were up due to an increase in revenue from sales of real estate and other factors. Net sales of
the golf business decreased due to a decrease in play revenue and other factors. As a result of these factors, theGroup’s net sales for the first half of fiscal 2018 increased ¥360 million, or 0.9%, compared to the same period of
the previous fiscal year and amounted to ¥39,280 million.
From the cost standpoint, cost of sales increased ¥132 million (0.5%) compared with the same period of the previous
fiscal year, to ¥26,616 million. Selling, general and administrative expenses increased ¥67 million (0.6%) comparedwith the same period of the previous fiscal year, to ¥11,673 million. As a result of the above, operating income forthe period increased ¥160 million, or 19.4%, to ¥990 million, while ordinary income totaled ¥1,194 million, an
increase of ¥173 million, or 17.0%. Additionally, as extraordinary loss, ¥103 million in special retirement expenses
was recorded. As a result, income before income taxes were ¥1,091 million, an increase of ¥25 million, or 2.4%, anddue to the effect of tax effect accounting regarding corporate division and other factors, profit attributable to ownersof parent was ¥1,508 million, an increase of ¥894 million, or 145.5%.
Operating results by business segment are as follows.
In addition, in line with the transition to a certified broadcasting holding company on April 1, 2018, the Company is
now responsible for the group administrative management business, the real estate management business and thesolar power generation business. As a result, the Company adopted the method where the expenses associated withthe group administrative management business, the real estate management business and the solar power generation
business are allocated to each reportable segment.
Broadcasting BusinessNet sales in the broadcasting business totaled ¥32,527 million, down ¥447 million, or 1.4%, compared to the same
period of the previous fiscal year. The principal factor accounting for this decrease in revenue is a decrease in TV
spot advertising sales. On the other hand, operating expenses decreased 2.0% from the same period of the previous
fiscal year, owing to factors including a decrease in agency fee. As a result, operating income amounted to ¥657
million, an increase of ¥244 million, or 59.2%, from the same period of the previous fiscal year.
Housing BusinessIn the housing business, net sales amounted to ¥6,305 million, an increase of ¥821 million, or 15.0%, compared withthe same period of the previous fiscal year. Principal factors were an increase in revenue associated with the openingof a new housing exhibition facility, in addition to increases in revenues from sales and leasing of real estate.
Meanwhile, operating expenses rose 15.2% due to cost price appropriation consequent upon the sales of real estate,increased costs from leasing of real estate, and other factors. As a result, operating income amounted to ¥446 million,
an increase of ¥48 million, or 12.2%, from the same period of the previous fiscal year.
Golf BusinessNet sales in the golf business amounted to ¥447 million, a decrease of ¥13 million, or 3.0%, compared with the same
period of the previous fiscal year. Principal factors were a decrease in play revenue from lower number of visitors
due to poor weather. On the other hand, operating expenses rose 1.2% due to increased labor expenses and otherfactors. As a result, operating income amounted to ¥2 million, a decrease of ¥16 million, or 88.5%, 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 2018 were ¥106,113 million, ¥3,433 million higher than at
the end of the previous fiscal year (March 31, 2018). This was primarily attributable to an increase in inventories inline with the acquisition of real estate for sale.
(Liabilities)
Total liabilities were ¥40,415 million, ¥1,098 million higher than at the end of the previous fiscal year. The principal
reason for the increase in liabilities was an increase in loans payable for the purchase of real estate for sale.
(Net Assets)
Consolidated total net assets came to ¥65,698 million, ¥2,334 million higher than at the end of the previous fiscalyear. This was attributable to recording of profit attributable to owners of parent reported for the period under review
and increases mainly in valuation difference on available-for-sale securities, while paying dividends from surplus.
(3) Explanation of Forward-Looking Statements, including the Outlook for Consolidated Performance
As to consolidated financial results forecasts of the full fiscal year, no revisions have been made since the previousannouncement.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of Yen)
March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Short-term investment securities
Inventories
OtherAllowance for doubtful accountsTotal 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
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

September 30, 2018

14,412
13,009
2,101
2,169
1,692
(6)
33,37916,163
11,770
200
4,802
1,887
(11)
34,812

20,396
11,0497,483
38,92819,902
11,0497,725
38,677

216
848
119
1,184

898
223
116
1,238

18,376
11,047(237)
29,18669,300102,680

18,621
13,001(237)
31,38571,301
106,113(Millions of Yen)
March 31, 2018
Liabilities
Current liabilities
Short-term loans payable
Current portion of long term loans payable
Accounts payable - other
Income taxes payable
Provision
Other
Total current liabilities
Non-current liabilities
Long term loans payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplusRetained 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

5

September 30, 2018

－
40
5,837
614
77
5,926
12,496

800
240
5,881
432
45
4,787
12,186130
18,0198,670
26,82039,316860
17,605
9,763
28,22940,4155,299
5,754
49,780(500)
60,334

5,299
5,775
51,416(470)
62,021

3,3083,567(2,018)
1,290
1,738
63,363
102,680(1,714)
1,853
1,823
65,698106,113

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
For the First Half of Fiscal 2017 and 2018

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
OtherTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities

First Half of Fiscal 2017
(April 1, 2017
to September 30, 2017)
38,92026,484
12,435
11,606829(Millions of Yen)First Half of Fiscal 2018
(April 1, 2018
to September 30, 2018)39,28026,616
12,664
11,673
990

23
159
38
221

21142
63
227

4
23
2
30
1,021

4
15
2
22
1,194

24－

Subsidy

20－

Total extraordinary income

45－

Extraordinary loss
Special retirement expenses

－

103

－
1,066
377
689
74
614

103

Total extraordinary loss
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

61,091(445)
1,536
28
1,508

Quarterly Consolidated Statement of Comprehensive Income
For the First Half of Fiscal 2017 and 2018

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

First Half of Fiscal 2017(April 1, 2017
to September 30, 2017)689

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

287

257

284

304

571
1,260

561
2,098

1,183

2,069

7728

(3) Notes regarding Quarterly Consolidated Financial Statements(Going Concern Assumptions)Not applicable.
(Any Major Change in the Amount of Consolidated Shareholders’ Equity)
Not applicable.
(Additional Information)(Adoption of “Partial Amendments to Accounting Standard for Tax Effect Accounting,” etc.)“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16,2018), etc. have been adopted from the beginning of the first quarter of fiscal 2018, whereby deferred tax assets arepresented under investments and other assets, while deferred tax liabilities are presented under non-current liabilities.

8

(Segment Information, etc.)
1. Explanation of Measurements of Sales, Profit and Loss for Each Reportable Segment
First Half of Fiscal 2017 (April 1, 2017 to September 30, 2017)(Millions of Yen)
Amounts
Recorded on
Quarterly
Adjustments
Consolidated(Note 1)
Statement ofIncome(Note 2)

Reportable Segment

Broadcasting

Housing

Golf ClubTotalSales
Revenues from externalcustomers
Transactions with othersegments

32,974

5,483

461

38,920—38,920244

1017272(272)

—

Total

33,2185,494

478

39,192(272)38,920

Segment profit

412

397

18

829

—

829

Notes:
1. The adjustment of negative ¥272 million represents the amount of intrasegment transaction elimination.
2. Segment profit refers to operating income recorded on the quarterly consolidated statement of income.
First Half of Fiscal 2018 (April 1, 2018 to September 30, 2018)(Millions of Yen)
Amounts
Recorded on
Quarterly
AdjustmentsConsolidated(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.
2. Notes relating to changes in reportable segments, etc.
(Change in calculation method of segment profit in line with transition to a certified broadcasting holding company)
In line with the transition to a certified broadcasting holding company on April 1, 2018, the Company is now
responsible for the group administrative management business and the real estate management business. As a result,
the Company has adopted the method where the expenses associated with the group administrative managementbusiness and the real estate management business are allocated to each reportable segment.
Owing to this change, in the first half of fiscal 2018, segment profit of broadcasting business increased by ¥100
million, segment profit of housing business decreased by ¥100 million, and segment profit of golf businessdecreased by ¥0 million compared with figures calculated using the former method.
9