Toky o Broadcasting System Holdings, Inc.

I N V E S T O R
INFO R M AT IO N

2018

Consolidated Financial Highlights

Net Sales

Operating Income(Millions of Yen)

354,338

14/3(Millions of Yen)

347,817

15/3

348,539

16/3

355,363

17/3

361,954

19,87818/3

Ordinary Income

15,696

15,728

14/3

15/3

16/3

17/3

18,800

18/3

Profit Attributable to Owners of Parent(Millions of Yen)

(Millions of Yen)

26,207

26,923

22,67818,096

17,17918,915

12,811

14,497

16,136

17,182

9,644

14/3

15/3

16/3

17/3

Total Assets

14/3

14/3

653,732

649,970

15/3

16/3

17/3

18/3

Total Net Assets

823,693(Millions of Yen)

579,039

18/3(Millions of Yen)

600,950

707,063

517,430
456,118

458,208

15/3

16/3

385,971

15/3

16/3

17/3

14/3

18/3

17/3

18/3

Contents
15

Major Indices

At a Glance

17

Segment Information

Organization

19

TBS Television5

Corporate Data

22

Financial Data of Major Group Companies

6

Business Report24

TBS Networks

2

To Our Stakeholders

3
4

11 Consolidated Financial Statements

Financial Figures
The financial figures used in this report are those used in the Japanese ”Tanshin,” which has been created in accordance with the provisions
set forth in the Japanese Financial Instruments and Exchange Act. Thus, all figures have been rounded down to the nearest million yen.

Forward-Looking Statements
This report contains forward-looking statements based on management’s assumptions and beliefs in light of the information currently
available. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in thisreport. Such risks include, but are not limited to, market trends, economic conditions and changes in industry regulations.

Tok yo Broadcasting System Holdings, Inc.

1

INVESTOR INFORMATION 2018

To Our Stakeholders

In June 2018,
I Was Appointed President

I am Takashi Sasaki, recently appointed as President andlarge number of market players from inside and outside

Representative Director of Tokyo Broadcasting System

Japan, resulting in intense competition. We see this time

Holdings, Inc., and Tokyo Broadcasting Systemof change positively and as an opportunity for evolution.

Television, Inc. (TBS TV).

Accordingly, in April 2018, we launched the Paravi paid
video streaming and related services. We intend to

Technological innovation and developing lifestyles arebringing dramatic change to the environment in whichgrasp this opportunity for new growth by drawing on thethe broadcasting industry operates. Amid the change,

strengths in content creation that we have accumulated

however, we remain committed to doing all we can toover long years to further expand our horizons as an

evolve our Group as a media industry player enjoying

all-round media group.
Guided by the commitment “From TBS,” we at the TBS

ever greater popularity and trust from the public.

Group will continue to take on new challenges to

For the fiscal year ended March 31, 2018, ouraverage audience ratings in the golden time slot placedbrighten the lives of our audience with a range of content

us second among commercial TV broadcasting networks

in the years to come. We ask for the continued support

for the first time in 11 years. We feel that this reflects theand understanding of our stakeholders in our endeavors.

gradually emerging success of the Group-wide initiatives

June 2018

to create content that engages people’s emotions, offer
entertainment that brings a smile, and deliver true stories
from around the world. To capitalize on this upward
trend, we are determined to redouble our efforts to

Takashi Sasaki

create content that meets the diverse needs of ouraudience.

President & Representative Director

With the increasing popularity of online video

Tokyo Broadcasting System Holdings, Inc.

watching, the video streaming market has attracted a

Tok yo Broadcasting System Holdings, Inc.

Tokyo Broadcasting System Television, Inc.

2

INVESTOR INFORMATION 2018

At a Glance

Our Business
The Group covers a wide range of businesses essentially including broadcasting. We aim to become the best media group that provides themost powerful contents and software in the areas of information, entertainment, lifestyle and culture.

Terrestrial TV
broadcasting

Terrestrial radio
broadcasting

Manufacture &sale of cosmetics

Miscellaneous
retailing

Satellite
broadcasting

Net & mobile
contents

Planning &production ofaudio & visualcontents

Real estateleasing

Business Activities(Year ended March 31, 2018)

Broadcasting Business¥217.6 billion

4.4%

35.5%

60.1%

Multi-Visual Ventures and Cultural Events Business¥128.4 billion
Real Estate Business¥15.8 billion

Tok yo Broadcasting System Holdings, Inc.

3

INVESTOR INFORMATION 2018

Organization
As of April 1, 2018

Tokyo Broadcasting System Holdings, Inc.

Broadcasting Business

Multi-Visual Ventures
and Cultural Events BusinessTokyo Broadcasting System Television, Inc.

NICHION, INC.

TBS Radio Inc.

TBS Ser vice, Inc.

TBS Vision, Inc.

OXYBOT, Inc.

FF TOHO, Inc.

TC Enter tainment Incorporated

TBS-TEX, Inc.

Grand Marche, Inc.

DREAMAX TELEVISION, INC.

TBS TriMedia, Inc.

AKASAKA GRAPHICS ART, INC.

StylingLife Holdings Inc. (with two other group companies)

Ar t Communication System, Inc.

C-TBS, Incorporated

TBS ProNex Inc.

Golf Network Plus Inc.

Japan Ar tvideo Ser vice Collaborative, Inc.

SEVEN・ARCS Co., Ltd. (with two other group companies)

Vucast, Inc.

Equity-Method Af filiates

TBS MEDIA RESEARCH INSTITUTE Inc.

TBS International, Inc.

WOWOW Inc.

BS-TBS, INC.

Premium Platform Japan, Inc.

Totsu Inc.

Place Holder, Inc.

TLC Co., Ltd.
Vecte, Inc.

Real Estate BusinessMidoriyama Studio City, Inc.
TBS Kikaku Co., Ltd.
Akasaka Heat Supply Co., Ltd.
TBS Sunwork, Inc.

Tok yo Broadcasting System Holdings, Inc.

4

INVESTOR INFORMATION 2018

Corporate Data
As of April 1, 2018

Date of Establishment
Head Office

May 10, 1951 (Registered on May 17)
5-3-6 Akasaka, Minato-ku, Tokyo 107-8006, Japan
www.tbsholdings.co.jp
Stock Code: 9401, TSE First Section¥54,986,892,896
Tokyo Broadcasting System Holdings, Inc.
241
Tokyo Broadcasting System Television, Inc. 1,101
58
TBS Radio Inc.

Paid-in Capital
Number of Employees

1

5

4

3

2

6

1 Newsroom at TBS Television

3 Akasaka Biz Tower

5 TBS studio for news programs

2 Sub-control room at TBS Television

4 TBS Holdings Head Office

6 TBS studio for variety shows

Major Shareholders and Number of Shares Held (Top 10)(as of March 31, 2018)

Number of shares held Percentage held
(shares)(%)

Name of shareholder
The Master Trust Bank of Japan, Ltd.
(Trust Account)
The Master Trust Bank of Japan, Ltd.
(Pension Account-Pension Trust Account held for DENTSU INC.)

9,353,500

5.35

9,310,500

5.32

MBS MEDIA HOLDINGS, INC.

8,848,100

5.06

MITSUI & CO., LTD.

5,746,000

3.28

Sumitomo Mitsui Banking Corporation

5,745,267

3.28

Mitsui Fudosan Co., Ltd.

5,713,728

3.27

NTT DOCOMO, INC.

5,713,000

3.26

Panasonic Corporation

5,643,180

3.23

Nippon Life Insurance Company

5,006,235

2.86

UBS AG LONDON A/C IPB SEGREGATED CLIENT ACCOUNT

4,409,400

2.52

Tok yo Broadcasting System Holdings, Inc.

5

INVESTOR INFORMATION 2018

Business Report
From April 1, 2017 to March 31, 2018

The Current Position of Tokyo Broadcasting System Holdings, Inc.
and its Subsidiaries
1 Business Activities and Results

TBS TV, the core of the Broadcasting Business, posted timerevenue of ¥86,388 million, up 1.2% year on year, andJapan’s economy continues on a path of modest recovery,

spot revenue of ¥83,702 million, down 2.9% year on year,with improvements seen in the employment and income

for the fiscal year under review. Time one-off sales fell slightly

environment. Meanwhile, the future outlook remains unclear

short of the previous year despite sales of various one-off

due to uncertainties in overseas economies, such as politicalprograms, such as the IAAF World Championships London

risks in the West and geopolitical risks in Asia.

2017, SMBC Nippon Series 2017, PyeongChang 2018

Against this backdrop, consolidated net sales of the Group

Winter Olympic Games and 2018 Space Travel with Akira

in the fiscal year ended March 31, 2018 increased by 1.9%

Ikegami. On the other hand, time regular sales increased onfrom the previous fiscal year to ¥361,954 million, operating

the back of strong audience ratings, resulting in an increase

income decreased by 5.4% to ¥18,800 million, ordinary

in total revenue. Spot sales were lower than the previous

income increased by 2.7% to ¥26,923 million, and profit

year due to a 2.0% decline in the volume of advertisements

attributable to owners of parent increased by 6.5% toin the Kanto Region.

¥17,182 million.

BS-TBS, INC. posted net sales of ¥16,784 million, down
1.4% year on year, and operating income of ¥2,393
million, down 6.4% year on year, for the fiscal year underBroadcasting

review. Although spot and shopping sales were strong andConsolidated net sales from the Broadcasting Businesstime one-off sales remained at the same level as the previous

segment decreased by 0.7% from the previous fiscal year toyear, sales declined as time regular sales struggled.

¥217,632 million, while operating income decreased byOperating income declined due to an increase in production

44.7% to ¥3,300 million.

and other expenses associated with enhancement ofprograms.
TBS Radio Inc. continued to rank No. 1 in radio listener
ratings research conducted by Video Research Ltd. in theTokyo metropolitan area in February. Since the researchundertaken for August 2001, the company has retained top
position for 100 consecutive terms covering 16 years and

IAAF World Championships London 2017

IAAF World Championships London 2017

Akira Kishimoto/PHOTO KISHIMOTO

Takamitsu Mifune/PHOTO KISHIMOTO

Tok yo Broadcasting System Holdings, Inc.

6

INVESTOR INFORMATION 2018

Business Report
From April 1, 2017 to March 31, 2018

eight months. Despite a 3.2% decline in net sales for the

Crimes That Bind (starring Hiroshi Abe, etc. and directed byfiscal year under review from the previous year, theKatsuo Fukuzawa) released in January, with box office

Company posted a significant increase (45.6%) in operating

revenues of more than ¥2.5 billion, ¥2.7 billion and ¥1.5

income as a result of thorough efforts to control costs, among

billion, respectively. Akasaka Sacas attracted many people

other initiatives.

throughout the year, organizing new events in addition toannual events, such as Mama Sacas in the spring, Deliciacas
in the summer and White Sacas in the winter.

Multi Visual Ventures and Cultural Events

Regarding the media business, businesses targeting

Net sales from the Multi-Visual Ventures and Cultural Events

overseas reported strong sales growth, particularly sales in

Business segment increased by 6.2% from the previous fiscal

the SASUKE format. In the CS business, sales declined due toyear to ¥128,453 million, while operating income increaseda decrease in the number of subscribers on each platformby 22.4% to ¥7,551 million.

despite measures taken for increasing the number of viewers,

Among concerts and stage performances, Gekidan☆

such as enhancing original content. In addition, the licensing

Shinkansen Seven Souls in the Skull Castle presented at IHI

business posted a sales increase, boosted by hit products

Stage Around Tokyo, Asia’s first 360-degree revolving

such as TV shopping which performed well.

theater opened in Toyosu, Tokyo was a huge success withThe StylingLife Group increased both sales and operating

the tickets selling out on successive days for the lastincome, led by the cosmetics business that remained strong

performance SHURA-TENMA, following the first Season

especially for hit products. Its core retailing business, Plaza

HANA, the second Season TORI, the third Season KAZE andstyle Company, recorded an increase in sales, which were

the fourth Season TSUKI.

boosted by a strong cosmetics performance, and secured a

Orebushi, Billy Elliot, as well as Tetsuya Kumakawa

rise in income.

K-Ballet Company’s Nutcracker presented at TBS Akasaka
ACT Theater were well received. Regarding events, Muséedu Petit Prince de Saint-Exupéry à Hakone received a recordhigh number of more than 220,000 annual visitors.
In film business, the Company had a series of blockbuster
hits, such as Mumon: The Land of Stealth (starring Satoshi
Ohno, etc. and directed by Yoshihiro Nakamura) released in
July, The 8-Year Engagement (starring Takeru Sato, etc. anddirected by Takahisa Zeze) released in December, and The

Seven Souls in the Skull Castle

The 8-Year Engagement© 2017 "THE 8-YEAR ENGAGEMENT" Film Partners

Tok yo Broadcasting System Holdings, Inc.

7

INVESTOR INFORMATION 2018

Business Report
From April 1, 2017 to March 31, 2018

3 Capital Procurement

Real Estate BusinessNet sales from the Real Estate Business segment increased by

Total interest-bearing debt of the Group at the end of the

4.4% from the previous fiscal year to ¥15,868 million, andfiscal year under review was ¥21,200 million in long-term

operating income increased by 2.8% to ¥7,954 million.

loans payable (including the current portion). (Excluding

Akasaka Biz Tower maintained sound business operations

lease obligations.)

with occupancy of both offices and commercial facilities

To ensure flexible access to operating capital, as of theremaining high. Regarding Akasaka Sacas, we aim toend of the fiscal year under review, StylingLife Holdings Inc.,

cement its status as a mecca for creative broadcasting culture

a consolidated subsidiary of the Company, had establishedby continuing to hold events that bring the TBS Group andthe commitment lines agreements, totaling ¥2.5 billion with

our programs closer to customers and viewers.

multiple financial institutions (the balance of the funds drawn
is nil, and the available balance is ¥2.5 billion).
Besides the above, with the aim of streamlining of funds,

2 Capital Investment

some of the account receivables are in the process ofliquidation.

Total capital investment in the fiscal year under review was¥8.9 billion.
Regarding the core system of TBS TV, because 15 years
have passed since the launch of digital terrestrial
broadcasting and a deterioration is noticeable, the Company
fully updated the television master control equipment andbusiness broadcasting system. The latest technologies wereintroduced, and a system was designed to ensure safe andsecure broadcasting services. In news reporting, theCompany updated broadcasting equipment in the prime
minister’s official residence because it had deteriorated. The

Akasaka Residence

equipment in the prime minister’s official residence is used fordaily important news report broadcasts such as broadcastingof the Cabinet formation on a call-in basis, Chief Cabinet
Secretary briefings and reporter briefings, etc. Through such
update, stable news report broadcasts were made possible.
At digital terrestrial relay stations around Kanto Area, several
facilities prepared in time for the launch of digital
broadcasting are aging. We are continuing our efforts tomaintain and upgrade the facilities of digital relay stations incooperation with companies in the Kanto region to ensureand support a region-wide environment for receiving
television broadcasts.

Tok yo Broadcasting System Holdings, Inc.

8

INVESTOR INFORMATION 2018

Business Report
From April 1, 2017 to March 31, 2018

Major initiatives under Group Medium-termManagement Plan 2020

4 Priorities
Changes in the environment surrounding the broadcasting
media further accelerated in FY2017. Amid the slowing

1. Increase of the competitiveness of TBS TV Creation of thedomestic market due to an aging population with fewer

strongest and best content

children, a so-cold “viewer shift,” a trend in which people

In FY2017 rankings in terms of household audience ratings,

enjoy video content easily with smartphones and tablets, is

TBS TV came in third in All Day, Golden Time (second

accelerating as functions of the devices have become moreamong commercial TV stations) and Prime Time categories,

sophisticated. Furthermore, the needs of advertisers are

moving up the ratings in all time categories. In particular, we

becoming diverse with these changes in lifestyle.

achieved the rankings of third in the All Day category andAmid these circumstances, the Group has been pushingsecond among commercial TV stations in the Golden Time

forward with the Group Medium-term Management Plan

category for the first time in 11 years. Our dramas and2018 since FY2016 and after consolidated operating

variety shows proved popular with many viewers. Without

income and consolidated ratio of operating income to net

becoming complacent, we will further strengthen oursales plan achieved our goal for FY2018, the final year of

production capabilities to keep creating content that fits thethe plan, two years ahead of the schedule in the first year.

times from new perspectives at all times.

Therefore, we developed Group Medium-term Management

Specifically, we will build a system for providing accurate

Plan 2020 in February 2018 and decided to make group-

information earlier in a manner that is easier to understandwide efforts to achieve the new goals. The Plan aims tothan any other medium with the aim of becoming news

develop into a media group that is always loved and trusted

media proud of overwhelming reputation. In addition, we

by people regardless of changes in its operating

will produce dramas, variety shows and documentaries thatenvironment, eying the era of integration between

convey joy and excitement more than ever before by further

broadcasting and telecommunications services and thedeveloping the content production capabilities unique to TBS

post-Olympic and Paralympic Games Tokyo 2020 period.

that we have built up over many years. Based on these
efforts, we set the FY2020 goal of an audience rantings ofsecond among all TV stations or higher. While our ultimate
goal is to become number one, we will first establish afoothold over the three-year period before trying to get the
top position in the industry.
2. Diversification and challenge to total media that createsthe synergy for TBS
Having terrestrial broadcasting as its core, the Group
operates wide-ranging media businesses: broadcastingsatellite (BS), communications satellite (CS), radio
broadcasting, distribution, and multi visual ventures & culture
events. In the distribution business, Paravi, a fee-charging
video distribution service of Premium Platform Japan, Inc. (PPJ)
launched in July 2017, started on April 1, 2018, amid
rapidly growing video viewing using the Internet. Paravi

Tok yo Broadcasting System Holdings, Inc.

9

INVESTOR INFORMATION 2018

Business Report
From April 1, 2017 to March 31, 2018

features wide-ranging content that other distribution services

As the result of these efforts under the Medium-term

do not have, with investments by Nikkei Inc., TV TOKYOManagement Plan, we set consolidated net sales of ¥400

Holdings Corporation, WOWOW Inc., Dentsu Inc., andbillion, consolidated operating income of ¥25 billion and the

Hakuhodo DY Media Partners Incorporated, in addition toratio of operating income to net sales of 6.3% on a

the Company. While many companies inside and outside

consolidated basis as goals to achieve in FY2020.

Japan entered the video distribution business, we will makeWe will continue striving to provide high-quality content

all-out efforts to grow the all-Japan platform led by us, content

and aim to achieve further growth and corporate value

producers.

enhancement to meet the expectations of our shareholders.

In the multi visual ventures and culture events business, theCompany made an animation production company into its
wholly owned subsidiary, and took a stake in a developer ofdigital intellectual training content for children. Seven Souls in
the Skull Castle presented at IHI Stage Around Tokyo, a360-degree theater opened in Toyosu, Tokyo in 2017 wasa huge success with the seats filled every day, acclaimed by
the theatrical community around the world.
Furthermore, we set up a ¥50 billion strategic investment
program over the three-year period leading up to FY2020 topromote new businesses as well as mergers and acquisitions
without sticking to existing ideas. Going forward, we willfurther expand our reach as a comprehensive media groupand continue to evolve.
3. Performance of the social responsibility that the TBS
Group should fulfill
The Group, which has under its umbrella a broadcaster thatis authorized to use the limited rare radio waves, needs tofulfill a higher level of social responsibility. In addition tocommunicating fair and accurate information, the Group willserve as a lifeline function for society in case of emergency.
In January 2018, TBS TV received a recommendation forcorrection from a Labor Standard Inspection Officeconcerning overtime work of some employees. Taking therecommendation seriously, TBS TV is working to ensurecompliance with laws and regulations and address the issueof long working hours. As a result, it is making progress in
reducing working hours on a company-wide basis. We willcontinue to drive the work style reform going forward as amanagement top priority.

Tok yo Broadcasting System Holdings, Inc.

10

INVESTOR INFORMATION 2018

Consolidated Financial Statements
Consolidated Balance Sheets ( Unaudited )Millions of yen

As of March 31, 2018 and 2017

2017

2018

¥ 69,731¥ 81,850

42,46042,516449

300

Merchandise and finished goods

7,472

7,769

Program rights and work in process

6,378

7,072

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Securities

Raw materials and supplies

520

673

Prepaid expenses

10,206

10,971

Deferred tax assets

3,326

3,827

Other

5,086

4,662

Allowance for doubtful accounts

(153)

(157)

145,479

159,488

200,685

201,667

Accumulated depreciation(106,060)(110,383)

Buildings and structures, net

94,62491,283

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

90,14985,517

Accumulated depreciation(79,502)(75,623)

Machinery, equipment and vehicles, net

10,647

9,894

30,97230,998(28,357)(28,464)

2,615

2,534

Land

84,00384,001

Lease assets

4,348

4,237

Accumulated depreciation(2,233)(2,523)

Lease assets, net

2,115

1,713

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Construction in progress

3,786

1,201

197,792

190,628

Software

3,929

5,734

Goodwill

18,595

16,79868

37

Total property, plant and equipment
Intangible assets

Lease assets
Other

1,253

1,273

Total intangible assets

23,846

23,844

326,689

436,399

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Long-term prepaid expenses
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

Tok yo Broadcasting System Holdings, Inc.

11

216

240

1,161

1,090

241

173

11,83912,014

(203)

(184)

339,944449,732

561,583

664,204¥ 707,063¥ 823,693

INVESTOR INFORMATION 2018

Consolidated Financial Statements
Consolidated Balance Sheets ( Unaudited )Millions of yen

As of March 31, 2018 and 2017

2017

2018

¥ 36,130¥ 39,446

769—

Current portion of long-term loans payable

5,400

18,200Accounts payable—other12,077

12,773

Income taxes payable

6,083

5,891

Accrued consumption taxes

1,513

1,377

Accrued expenses

1,620

2,111

Provision for bonuses

4,684

4,964

Provision for directors’ bonuses

107

139

Provision for removal of noncurrent assets

432

73

Other provision

287

401

Other

8,122

8,004

Total current liabilities

77,231

93,382

17,000

3,000

121

121

Net defined benefit liability

16,206

15,943

Lease obligations

1,001

679

Deferred tax liabilities

63,201

94,345

Other

14,871

15,269Total noncurrent liabilities

112,402129,359

189,633

222,742

Capital stock

54,98654,986

Capital surplus

50,48946,760Retained earnings

267,127

262,138

Treasury stock(20,543)(54)

Total shareholders’ equity

352,059

363,830

150,247

221,405

Deferred gains or losses on hedges

174

(117)

Foreign currency translation adjustment

5

(34)

Remeasurements of defined benefit plans

(42)

(29)

150,385

221,224

Non-controlling interests

14,985

15,895

Total net assets

517,430

600,950¥ 707,063¥ 823,693

Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payableNoncurrent liabilities
Long-term loans payable
Provision for environmental measures

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

Total liabilities and net assets

Tok yo Broadcasting System Holdings, Inc.

12

INVESTOR INFORMATION 2018

Consolidated Financial Statements
Consolidated Statements of Income (Unaudited)
Millions of yen

As of March 31, 2018 and 2017

2017

2018

¥ 355,363¥ 361,954

242,067

248,204

113,296

113,750

93,417

94,94919,87818,800

25

26

5,087

8,083

986

391

Other

1,141

394

Total non-operating income

7,241

8,896

Interest expenses

468

378

Loss on retirement of noncurrent assets

77

166

Other

366

228

Total non-operating expenses

912

772

26,207

26,923Gain on sales of investment securities

212

988

Total extraordinar y income

212

988

Impairment loss

79

149

Provision of allowance for removal

432

139

Loss on business withdrawal—

97

Early extra retirement payments—

52

Loss on retirement of noncurrent assets

101

33

Loss on valuation of investment securities

129

4

Loss on sales of shares of subsidiaries and associates

215—

Total extraordinar y losses

958

476

Profit before income taxes

25,461

27,435

Income taxes—current

8,537

9,923

39

(549)

Total income taxes

8,576

9,374

Profit16,88418,061

747

878¥ 16,136¥ 17,182

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Income taxes—deferred

Profit attributable to non-controlling interests
Profit attributable to owners of parent

Tok yo Broadcasting System Holdings, Inc.

13

INVESTOR INFORMATION 2018

Consolidated Financial Statements
Consolidated Statements of Cash Flows (Unaudited)
Millions of yen

As of March 31, 2018 and 2017
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of long-term prepaid expenses
Amortization of goodwill
Gain on valuation of investment securities
Gain on sales of investment securities
Increase (decrease) in allowance for noncurrent asset retirement expense
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Loss on retirement of noncurrent assets
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in (earnings) losses of affiliates
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Increase (decrease) in notes and accounts payable—trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of stocks of subsidiaries and affiliates
Other, net
Net cash used in investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Increase in long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from disposal of treasury shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Repayments to non-controlling shareholders
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation
Cash and cash equivalents at end of period

Tok yo Broadcasting System Holdings, Inc.

14

2017

2018

¥ 25,461
13,614
108
1,796
129
(212)
432
3,711
268
178
(45)
(5,113)468(986)(3,593)
(391)
752
2,087
(1,694)36,974
5,408
(582)
2,532
(7,847)36,485¥ 27,435
14,866
77
1,796
4
(988)
(359)
280
(170)
199
(15)
(8,110)
378
(391)
(56)
(1,144)
(713)
3,315
(106)
36,297
8,446
(378)
1,272
(10,100)
35,536(9,459)(1,236)
(240)
266
(544)
1,135
(10,078)(6,079)(3,703)(3,503)
2,110(5,232)2,380(14,028)769——(1,200)(30,000)
328(4,707)(173)(1,350)(384)(36,718)(2)(10,314)74,734
2,971¥ 67,391

—
(769)
4,800
(6,000)—397(5,587)
(135)
—
(435)
(7,730)(40)(13,738)
67,391—¥ 81,129INVESTOR INFORMATION 2018

Major IndicesEarnings per Share

Return on Equity

(Yen)

(%)

92.46
79.12

98.38

83.12

61.22

14/3

3.2

3.3

15/3

16/3

3.4

3.2

2.8

15/3

16/3

17/3

18/3

14/3

17/3

18/3

Ratio of Ordinary Income to Total Assets

Ratio of Operating Income to Net Sales

(%)

(%)

5.6

3.9
3.5
3.2

3.1

14/3

15/3

16/3

4.4

4.5

14/3

15/3

3.5

17/3

18/3

16/3

Equity Ratio

Net Assets per Share

(%)

(Yen)

63.3

66.7

68.3

5.2

4.9

71.1

17/3

18/3

3,349.52

71.0
2,689.56

2,878.29
2,545.60

2,263.65

14/3

15/3

16/3

17/3

18/3

Tok yo Broadcasting System Holdings, Inc.

14/3

15

15/3

16/3

INVESTOR INFORMATION 2018

17/3

18/3

Major Indices

Number of Shares Issued at the End of the Term

Amount of Treasury Shares at the End of the Term

(Including Treasury Shares)(Shares)(Shares)

190,434,968 190,434,968 190,434,968 190,434,968
174,709,837

28,590,009

28,404,517

15,981,914

15,871,409

41,774
14/3

15/3

16/3

17/3

18/3

14/3

15/3

16/3

17/3

Cash Flows from Operating Activities

Cash Flows from Investing Activities(Millions of yen)

(Millions of yen)

36,485

18/3

35,53632,337–2,32627,851
23,038–8,956–11,326–10,078–14,028

14/3

15/3

16/3

17/3

18/3

14/3

15/3

16/3

17/3

18/3

Cash Flows from Financing Activities

Cash and Cash Equivalents, at End of Period(Millions of yen)

(Millions of yen)

81,12974,374
67,391–5,326–23,567

56,312

56,728

14/3

15/3–7,730–25,242–36,718
14/3

15/3

16/3

17/3

18/3

Tok yo Broadcasting System Holdings, Inc.

16

16/3

INVESTOR INFORMATION 2018

17/3

18/3

Segment Information
Consolidated Results by Segment(Millions of yen)

FY2018External
sales

y/y change

Operatingincomey/y change

Broadcasting Business¥217,632–1,542¥ 3,300–2,672Multi-Visual Ventures and Cultural Events Business

128,453+7,467

7,551+1,382

Real Estate Business

15,868

+666

7,954

+218

Consolidated Business¥361,954+6,590¥18,800–1,078

Capital Expenditures and Depreciation(Millions of yen)

Consolidated

FY2018

Capital expenditures¥ 8,948

Depreciation

13,693

TBS Holdings

FY2018

Capital expenditures¥

Depreciation

531
2,663

TBS Television

FY2018

Capital expenditures¥ 6,696

Depreciation

8,574

Tok yo Broadcasting System Holdings, Inc.

17

INVESTOR INFORMATION 2018

Segment Information
FY2019 Consolidated and TBS Television Business Results Forecasts(Millions of yen)

2019

Consolidated

FY2019Net sales¥367,000

Operating income

18,000Ordinary income

27,400

Profit attributable to owners of parent

17,500Business Results Forecast by Segment(Millions of yen)

Consolidated

FY2019Consolidated net sales¥367,000Broadcasting Business

221,000

Multi-Visual Ventures and Cultural Events Business

130,300

Real Estate Business

15,700Consolidated operating income

18,000Broadcasting Business

3,000

Multi-Visual Ventures and Cultural Events Business

7,500

Real Estate Business

7,500(Millions of yen)

2019

TBS Television

FY2019Net sales¥220,000

Operating income

6,500

Ordinary income

9,000

Net income

6,300

Time/Spot, Program Cost Forecasts
Full year

Time

+0.8%

Spot

+4.9%

Program cost

¥102,400 million

Note: The estimated figures above, which were announced on May 10, 2018, are subject to revision. For the most up-to-date estimated figures, please see theCompany’s web site.

Tok yo Broadcasting System Holdings, Inc.

18

INVESTOR INFORMATION 2018

TBS Television 1
Breakdown of TBS Television Income(Millions of yen)

FY2018y/y change¥184,370–283

Time advertising

86,388+999

Spot advertising

83,702–2,538Program sales in Japan

10,331+1,398Others

3,948

–143

Operations

29,727+729

Real estate

3,054

–11

¥217,152+435

Television

Total income

Year-on-Year Changes in Time/Spot Earnings
(%)

150

Time
Spot
120

117.3
103.3

90

100.0

103.0
92.3

100.5
97.3

99.8

110.2

94.4

112.4
100.3

101.3

103.0

99.3

99.2

97.3

101.1

101.8
96.3

96.4
86.7

85.4

85.7

Feb.

Mar.

60
2017

Apr.

2018

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Q1

Q2

Q3

Q4

Full year● Time

98.6

105.8

101.8

98.5

101.2

● Spot

100.2

100.6

97.6

90.2

97.1

19.2

19.0

18.8

17.7

18.7

TBS share among five key broadcasters

HIRUOBI!

Information 7 Days NewscasterTok yo Broadcasting System Holdings, Inc.

19

INVESTOR INFORMATION 2018

SUNDAY JAPON

TBS Television 2
Spot Advertising Sales Ranks by Business Category
FY2018(%)

Growth rate

Share

1

Information, telecommunications and broadcasting

–3.6

13.5

2

Foods

–7.8

10.4

3

Alcoholic and other beverages

–2.5

10.2

4

Pharmaceuticals

–9.8

8.8

5

Cosmetics and toiletry

–1.0

8.4

6

Automobiles and transportation equipment

+3.7

6.8

7

Transportation and leisure

+31.3

6.5

8

Financial services

–26.3

4.8

9

Real estate and construction

+30.6

4.7

10

Eating out and related services

–4.4

4.5

(Ranked in order of sales proceeds)

TBS Television Business Segment Income
Segment(Millions of yen)

Full year y/y change

Remarks

Cultural business (events)¥ 2,496–943

The Little Prince Museum in Hakone and K-Ballet Company showed good results, but revenue
declined significantly due to the smaller number and size of events compared to the previous
year.

Operations Show businessdivision
MoviesMoviesandanimation
Animationbusiness

7,627+3,586

Revenue increased significantly with strong performances of events, in addition to the strong
success throughout the year of Seven Souls in the Skull Castle of IHI Stage of Around Tokyo.

2,071

+522

Revenue increased due to the hits of the 8-Year Engagement and The Crimes That Bind in the
fourth quarter, as well as the hit of The Land of Stealth throughout the year.

878

–99

Multi-visual business

2,396–2,549Overseas business

3,345

+453

Revenue rose significantly, primarily due to continued strong sales in Asian markets, theexpansion of SASUKE overseas and strong sales of the rights to remake dramas.

Pay-TV business

8,802

–242

Revenue declined, mainly due to the impact of a decline in the number of subscribers to SKY
PerfecTV! and the loss of the broadcast rights to football games.

Licensing business

1,048

+113

Revenue increased, reflecting growth in sales of goods related to Seven Souls in the Skull
Castle, 99.9, RIKUOH and TOMICA Hyper Rescue Police DRIVE HEAD, in addition to thestrong performance of special online shopping programs.

Digital/new business

1,061

–111

Revenue declined mainly due to the termination of content production for carriers, but profit
increased.

¥29,727+729

Content
business
division

Total

The World Unknown to Matsuko

Revenue declined due to the absence of a blockbuster hit throughout the year.
Revenue from DVDs declined significantly without a big hit, in addition to the difficult market
conditions.
Revenue from on-demand declined mainly due to the change in a contract with a customer.

Bakuhou! THE Friday

Tok yo Broadcasting System Holdings, Inc.

20

INVESTOR INFORMATION 2018

Monitoring

TBS Television 3
FY2018 Viewer Ratings
All day

Golden time*

Prime time**TBS

6.3 (3rd)9.9 (3rd)

9.8 (3rd)NTV

8.1 (1st)

12.4 (1st)

12.0 (1st)TV Asahi

7.4 (2nd)9.9 (3rd)

10.0 (2nd)TV Tokyo

2.8 (6th)

6.6 (6th)

6.2 (6th)

Fuji TV

5.7 (5th)

7.8 (5th)

7.7 (5th)NHK

6.3 (3rd)

10.4 (2nd)9.1 (4th)

HUT

40.8

60.7

58.2

Ratings for April 3, 2017 to April 1, 2018, on a weekly basis* 19:00–22:00** 19:00–23:00(%)(According to research by Video Research Ltd. in the Kanto region)

TV Program Costs (Production Expenses)(Millions of yen)

FY2018FY2017y/y change

Q1¥23,770¥23,722+49

Q225,152

24,932+221

Q324,79723,805+992

Q425,99725,718+279

Direct expenses

20,575

20,311+264

Indirect expenses

5,422

5,407

+15

Fiscal year cumulative¥99,717¥98,176+1,541FY2019 forecast¥102,400

Major expenses included in TV program costs:
Direct expenses:

Program production expenses, fees for broadcasting rights, fine arts production expenses,
technical production expenses

Indirect expenses:

Absorbed costs including depreciation and personnel cost for employees

RIKUOH

UnnaturalTok yo Broadcasting System Holdings, Inc.

21

Dr.STORKSINVESTOR INFORMATION 2018

Financial Data of Major Group Companies
TBS Radio Inc.

(Millions of yen)

FY2018AmountNet salesy/y change¥10,478–346

Operating income

520

+162

Ordinary income

528

+163

Net income

342

+103

Recorded the highest ratings for 102 consecutive periods from August 2001 to June 2018.

BS-TBS, INC.

(Millions of yen)

FY2018AmountNet salesy/y change¥16,784–246

Operating income

2,393

–164

Ordinary income

2,440

–155

Net income

1,674

–107

Grand Marche, Inc.

(Millions of yen)

FY2018AmountNet salesy/y change¥14,056+1,473Operating income

356

+43

Ordinary income

345

+19

Net income

237

+15

Tok yo Broadcasting System Holdings, Inc.

22

INVESTOR INFORMATION 2018

Financial Data of Major Group Companies
StylingLife Holdings Inc. (Consolidated)(Millions of yen)

FY2018AmountNet salesy/y change¥70,054+4,389Operating income

3,148

+576

Ordinary income

3,112

+677

Net income

1,278

+216

© 2017 Alice Taylor & Thomas Taylor All rights reserved.

Where's Wally? © DreamWorks Distribution Limited. All rights reserved.

ⓒ2017 Those Characters From Cleveland, Inc.

Tok yo Broadcasting System Holdings, Inc.

23

INVESTOR INFORMATION 2018

TBS Networks
JNN ( Japan News Network)
J R N ( Japan Radio Network)
TBS Television and TBS Radio harness two of the most extensive commercial
broadcasting networks in Japan, in which 28 TV stations affiliated with theJapan News Network (JNN) and 34 radio stations affiliated with the Japan
Radio Network (JRN) nationwide guarantee thorough and quality
news gathering.
Our news network delivers accurate information in a split second, in alliancewith overseas bureaus placed in 10 major cities around the world.

HBC

ATV
RAB
ABS

JNN

JRN

Television

Radio

IBC

TUY
YBC
BSN
KNB
TUT

MRO
FBC

BSS
TYS
KRY

RKB
NBC

OBS

ITV
RNB

RKC
KUTV

RKK
MBC

RSK

RCC

RNC
JRT

MBS
ABC

CBC

TBC
TUF
RFC

SBC

UTY
YBS

TBS
TBS R&C
SBS

WBS

MRT

RBC

JNN Overseas Bureaus

Moscow

London (& Middle East)
Paris

Beijing

Seoul
Tokyo (TBS)Shanghai

Los Angeles

BangkokTok yo Broadcasting System Holdings, Inc.

24

INVESTOR INFORMATION 2018

New York
Washington, D.C.

Tokyo Broadcasting System Holdings, Inc.
5-3-6 Akasaka, Minato-ku, Tokyo 107-8006, Japan
Phone: +81-3-3746-1111
Fax: +81-3-3588-6378
www.tbsholdings.co.jp/ir/en/