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Consolidated Financial Highlights

Net Sales

Operating Income(Millions of Yen)

(Millions of Yen)

352,351

13/3

354,338

14/3

347,817

348,539

15/3

16/3

355,363

19,87817/3

Ordinary Income

16,18815,696

15,728

13/3

14/3

15/3

17,17916/3

17/3

Profit Attributable to Owners of Parent(Millions of Yen)

(Millions of Yen)

26,20722,67817,671

13/3

18,096

14/3

18,915

12,811

15/3

16/3

Total Assets(Millions of Yen)

559,626

653,732

649,970

17/3

9,173

9,644

13/3

14/3

15/3

16/3

16/3

456,118

458,208

15/3

16/3

(Millions of Yen)

17/3

517,430

579,039

14/3

15/3

16,136

Total Net Assets

707,063344,473

13/3

14,497385,971

13/3

17/3

14/3

17/3

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 inthis report. 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 2017

To Our Stakeholders

The following is a brief summary ofbusiness operations during the fiscal year
ended March 31, 2017.

Elsewhere, we decided on the joint establishment inTokyo Broadcasting System Television, Inc. (TBS TV) saw
audience ratings improve in the second half-year

July 2017 of Premium Platform Japan Co., Ltd., a newcompared with the first half-year in the all-day, golden,

company whose main business will be to provide pay

prime, and non-prime time slots. Among the best-received

video streaming and related services. Additionally, we

TV dramas during this period were The Full-Time Wife

were appointed strategic media partner to ispace, Inc.,

Escapist and A LIFE: A LOVE. High audience ratings

which manages Team HAKUTO, the only Japanese

were also achieved during the 2017 World Baseballparticipant in the Google Lunar XPRIZE competition toClassic TM competition by live broadcasts from the fiercely

explore the surface of the moon.
We at the TBS Group will continue to take on newfought battles of the Japan National Baseball Team.

challenges for the future. Guided by the commitment

TBS Radio Inc. continues its evolution toward the next
generation of radio through expansion with Internet“From TBS,” and backed by the firm support anddistribution services such as Wide FM, radiko, andunderstanding of our stakeholders, we look forward toRadio Cloud. In our Multi-Visual Ventures and Culturalcontinued corporate growth.

Events Business, the 360-degree theater IHI STAGE

June 2017

AROUND TOKYO opened in March 2017 in the Toyosu
district of Tokyo and has enjoyed daily success. A
variety of events was also offered at the new Akasaka
Sacas development, which, together with Akasaka ACT

Shinji Takeda

Theatre and Akasaka BLITZ, has become a byword for

President & Representative Director

the Akasaka district.

Tokyo Broadcasting System Holdings, Inc.
Tokyo Broadcasting System Television, Inc.

Tok yo Broadcasting System Holdings, Inc.

2

INVESTOR INFORMATION 2017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, 2017)

Broadcasting Business¥219.1 billion

4.3%

34.0%

61.7%

Multi-Visual Ventures and Cultural Events Business¥120.9 billion
Real Estate Business¥15.2 billion

Tok yo Broadcasting System Holdings, Inc.

3

INVESTOR INFORMATION 2017

Organization
As of April 1, 2017

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.
Japan Ar tvideo Ser vice Collaborative, Inc.

Equity-Method Af filiate

Vucast, Inc.

WOWOW INC.

TBS MEDIA RESEARCH INSTITUTE Inc.

TBS International, Inc.
BS-TBS, INC.
Totsu 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 2017

Corporate Data
As of April 1, 2017

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.
271
Tokyo Broadcasting System Television, Inc. 1,079
TBS Radio Inc.
58

Paid-in Capital
Number of Employees

1

5

4

3

2

6

1 Newsroom at TBS Television

3 Akasaka Biz Tower

5 On set at TBS Television studio for news programs

2 Sub-control room at TBS Television

4 TBS Holdings Head Office

6 On set at TBS Television studio for variety shows

Major Shareholders(as of March 31, 2017)

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

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

9,310,500

5.32

9,273,000

5.30

Mainichi Broadcasting System, Inc.

8,848,100

5.06

MITSUI & CO., LTD.

7,691,000

4.40

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

BIC CAMERA INC.

4,190,000

2.39

Tok yo Broadcasting System Holdings, Inc.

5

INVESTOR INFORMATION 2017

Business Report
From April 1, 2016 to March 31, 2017

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

revenue and a 3.2% increase in spot revenue for the fiscal

Japan’s economy continues on a path of modest recovery,

sales, one-off programs, such as Rio de Janeiro Olympics

with improvements seen in the employment and income

2016, 2017 World Baseball ClassicTM, and Leaders II, as

environment. Meanwhile, the outlook remains unclear due towell as increased unit prices of regular programs, contributed

uncertainties in overseas economies, such as a slowdown into an increase in sales. The company recorded approximately

Asian emerging economies, including China, and US policy

the same level of sales as in the previous year when one-off

developments after the presidential election.

programs such as IAAF World Championships Beijing 2015

year under review from the previous year. Regarding time

Against this backdrop, consolidated net sales of the Group

contributed significantly to sales.

in the fiscal year ended March 31, 2017 increased by 2.0%

Concerning spot sales, with advertisements increasingly

from the previous fiscal year to ¥355,363 million, operating

placed by many industries, such as “information,

income increased by 15.7% to ¥19,878 million, ordinary

telecommunications and broadcasting” “food,” and “alcoholic

income increased by 15.6% to ¥26,207 million, and profit

and other beverages,” the Company enjoyed strong audience

attributable to owners of parent increased by 11.3% toratings and expanded its market share among key television¥16,136 million.

stations in Tokyo. In addition, the Company recorded growthrate of the volume of advertisements, which was higher thanthat in the Kanto region (+1.6% year on year).

BroadcastingWith the BS digital broadcasting market remaining firm,

Consolidated net sales from the Broadcasting Business

BS-TBS, INC. continued to perform well, posting a 5.8%

segment increased by 2.5% from the previous fiscal year toincrease in sales from the previous year due to its unique¥219,175 million, while operating income increased bystrategic programing that increases customer satisfaction,

24.4% to ¥5,973 million.

especially for BS broadcasting. Operating income also rose

Tokyo Broadcasting System Television, Inc., the core of the

8.3% over the previous year, despite an increase in production

Broadcasting Business, posted a 0.5% increase in time

costs accompanying efforts to strengthen programing.

Rio de Janeiro Olympics 2016

Rio de Janeiro Olympics 2016

© PHOTO KISHIMOTO© PHOTO KISHIMOTO

Tok yo Broadcasting System Holdings, Inc.

6

INVESTOR INFORMATION 2017

Business Report
From April 1, 2016 to March 31, 2017

Among concerts and stage performances, blockbuster hits, such

TBS Radio Inc. continued to rank No. 1 in the radio listener
ratings research conducted by Video Research Ltd. in theas TAKE FIVE 2, THE SCARLET PIMPERNEL, and Romeo &Tokyo metropolitan area in February. Since the research

Juliette, were presented consecutively at the TBS Akasaka ACT

undertaken for August 2001, the Company has retained top

Theater. Besides, at other theaters, a new episode of the Hyperposition for 94 consecutive terms covering 15 years andProjection Performance Haikyuu!!, and other dramas wereeight months. Sales and operating income for the fiscal year

staged. All of these performances received good reviews.

under review increased 1.4% and 3.1%, respectively, from

Akasaka Sacas attracted many people throughout the year,

the previous year as a result of comprehensive efforts toorganizing new events aggressively in addition to annual

expand measures to improve sales and control costs.

events, such as Mama Sacas, in the spring, Deliciacas, in thesummer and White Sacas, in the winter.

Multi-Visual Ventures and Cultural Events
Net sales from the Multi-Visual Ventures and Cultural Events
Business segment increased by 1.5% over the previous fiscal
year to ¥120,986 million, while operating income increasedby 27.4% to ¥6,168 million.
In film business, 64 (SIX FOUR: Part 1 and Part 2 (starring
Koichi Sato, etc. and directed by Takahisa Zeze)), released in
May and June, respectively, became a smash hit with a box
office revenue of ¥3,680 million Among exhibitions, Van
Gogh and Gauguin: Reality and Imagination, held at theTokyo Metropolitan Art Museum attracted more than 390,000
visitors, while 265,000 people visited Lascaux: The Cave
Paintings of the Ice Age, at the National Museum of Natureand Science. As the first exhibition under a decade-longpartnership agreement between TBS and Kunsthistorisches
Museum of Vienna, Lucas Cranach the Elder: 500 Years of the

64 (SIX FOUR)

Power of Temptation, was presented at the National Museum© 2016 64 Film Production Committeeof Western Art and at the National Museum of Art, Osaka.

Tok yo Broadcasting System Holdings, Inc.

7

INVESTOR INFORMATION 2017

Business Report
From April 1, 2016 to March 31, 2017

Real Estate Business

Regarding the media business, while growth in the number ofsubscribers on each platform slowed in the CS business, sales

Net sales from the Real Estate Business segment decreased by

improved due to strategic programing for unique content and1.8% from the previous fiscal year to ¥15,202 million, andsports content, focusing on live broadcasting of professional

operating income increased by 2.7% to ¥7,736 million.

baseball games. In the DVD business, a drama series titledAkasaka Biz Tower maintains sound business operations

The Full-Time Wife Escapist, recorded strong sales. Businesses

with occupancy rates of both offices and commercial facilities

targeting overseas also reported strong sales growth,remaining high. Regarding Akasaka Sacas, we aim to cement

particularly sales in the SASUKE, format.

its status as a mecca for a creative broadcasting culture by

The StylingLife Group increased both sales and operating

continuing to hold various events that bring the TBS Group

income. In its core retailing business, StylingLife Holdings Inc.

and its programs closer to customers and viewers.

PLAZASTYLE COMPANY, cosmetics and sundry items
performed well and secured about the same level of sales asin the previous year, while sales of clothing items were weakbecause the apparel industry has been in a slump. Income
increased as a result of efforts to control costs. The cosmetics
business remained satisfactory, reflecting an expansion ofsales of hit products.

The Full-Time Wife Escapist

SASUKETok yo Broadcasting System Holdings, Inc.

8

INVESTOR INFORMATION 2017

Business Report
From April 1, 2016 to March 31, 2017

2 Capital Investment

recording news video. Video shot at night is much brighterwith the latest highly sensitive camera being employed.

Total capital investment in the fiscal year under review was

At digital terrestrial relay stations around Kanto area, several¥10,600 million.

facilities prepared in time for the launch of digital

IHI STAGE AROUND TOKYO was constructed and opened

broadcasting are aging. We are continuing our efforts toat Toyosu, Koto-ku, Tokyo. This theater features rotating

maintain and upgrade digital relay stations in cooperation

audience seats that are surrounded by stages on 360

with companies in the Kanto area to ensure and support a

degrees.

region-wide environment for receiving television broadcasts.

Concerning equipment for producing television programs,
we upgraded the lighting, dimming, and lifting equipment at
Midoriyama M5 Studio, which is a base for producing

3 Capital Procurement

dramas. We also renewed the imaging equipment of A
Studio, the flagship studio of TBS, located in the Broadcasting
Center at Akasaka where we produce comedy/variety shows

Total interest-bearing debt of the Group at the end of theand live programs. The Company introduced a 4K imaging

fiscal year under review was ¥23,169 million (excluding

system, including studio cameras, so that we can create thelease obligations), consisting of ¥769 million in short-term

first 4K programs for TBS in the studio.

loans and ¥22,400 million in long-term loans payable

Regarding the internal core system, we installed XDCAM, a(including the current portion).

mainstream file recorder, in the Recording Center. It is on

To ensure flexible access to operating capital, as of theschedule for transition to file-based production following

end of the fiscal year under review, StylingLife Holdings

termination of the maintenance service for VTR equipment andInc., a consolidated subsidiary of the Company, had

the need to update obsolete devices.

established the commitment line agreements, totaling

Regarding wireless equipment, we upgraded the FPU¥3,000 million with multiple financial institutions (theequipment for live broadcasts of road races and specific radiobalance of the funds drawn is nil, and the available

mic equipment, in accordance with the radio frequency shiftbalance is ¥3,000 million).

plan. The scheduled transition of all related equipment has

Besides the above, with the aim of streamlining of funds,

now been completed.

some of the account receivables are in the process of

In news reporting, the Company updated the anti-vibration

liquidation.

camera mount of Helicopter #1, which is essential for

IHI STAGE AROUND TOKYOIHI STAGE AROUND TOKYOTok yo Broadcasting System Holdings, Inc.

9

INVESTOR INFORMATION 2017

Business Report
From April 1, 2016 to March 31, 2017

Concerning overseas business, SASUKE, and other TV

4 Priorities

formats remain popular.

We were made aware of the further diversification of ourratings in the Tokyo metropolitan area since August 2001,

lifestyles and the ways we access media in the fiscal year

which is a great achievement. However, radio broadcasting

ended March 2017. Technology that may ultimately change

continues to face headwinds, and there is no time to take apeople’s lifestyles, such as the Internet of Things (IoT) andwait-and-see approach. The Internet distribution service for

artificial intelligence (AI), are finally being put to practicalradiko radio broadcasting, which was launched in 2010, isuse. Accordingly, younger generations are increasingly

gaining recognition for radio broadcasting, particularly

turning away from television. However, we are confident

among young people, and is expanding opportunities forthat the pioneering content the Group produces, such as

people to listen to radio broadcasts.

TBS Radio, Inc. has been ranked No. 1 in radio listener

dramas and comedy/variety shows, remains highly

BS-TBS, Inc., with its constant and steady growth, isaccessible to young people and has significant value inmaximizing synergies among the Group companies, isonline video distribution services. In fact, we produced

contributing to developing revenue sources of the Group,

some high-profile smash hit dramas this fiscal year.

and is steadily preparing for the upcoming 4K broadcasting.

Nevertheless, we should not be content with the situation.

In May 2016, the Company announced the GroupWe need to continue to create content that is in line with theMedium-Term Management Plan 2018, which defines

times with a perspective that is always fresh as we seek topriorities: enhancing the broadcasting business, building afurther strengthen our content production capabilities.

comprehensive media strategy, improving the Group’s

These efforts are consistently yielding results, such as

profitability, and making progress on diversifying earnings

increasing operating income. Now, with work-style reforms

through new business development with strategicin mind, the Company aims to respond to your trust andinvestments, and implemented the plan. The fiscal year

support by integrally and efficiently managing all media

ended March 2017 was the first year of the medium-term

owned by the Group, including terrestrial broadcasting,framework. While sales fell slightly short of the final year’s

broadcasting satellite (BS), communications satellite (CS),expectations, earnings reached the targeted level two years

radio, and the Internet.

ahead of schedule. Indeed, the firm spot market in the Kanto

In the broadcasting segment, revenue and earnings

area supported this performance, but the Company is

growth continued mainly in terrestrial TV broadcasting,encouraged that each business segment worked hard to

supported by strong viewer ratings and a steady increase inimprove profit while strengthening its capabilities. Althoughspot revenue. However, there is uncertainty in thethe advertising market is seeing some uncertainty, theadvertisement market. We will endeavor to gain firmer

Company aims to continue moving toward the next stage

support and trust by providing strong, quality content.

and to sustain growth.

In the business segment, IHI STAGE AROUND TOKYO, a

We appreciate your support and strive to fulfill thetheater where the audience is surrounded on 360 degrees

mandate of our shareholders.

by stages and screens, finally opened in March, 2017 at
Toyosu, Koto-ku, Tokyo. The theater has been filled since its
opening, and we are pleased with its flying start. The
playhouse, which will be in operation until 2020, the yearof the Olympics, is getting attention from the theatricalcommunity around the world, along with the original theaterin Holland, for its unprecedented dynamic staging.

Tok yo Broadcasting System Holdings, Inc.

10

INVESTOR INFORMATION 2017

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

As of March 31, 2017 and 2016

2016

2017

¥ 74,273¥ 69,731

Notes and accounts receivable—trade38,85042,460

Securities

1,001

449

Merchandise and finished goods

7,245

7,472

Program rights and work in process

6,173

6,378

AssetsCurrent assets
Cash and deposits

Raw materials and supplies

561

520

Prepaid expenses

10,880

10,206

Deferred tax assets

3,666

3,326

Other

7,004

5,086

(177)

(153)

149,478

145,479

199,705

200,685

Accumulated depreciation(102,822)(106,060)

Buildings and structures, net

96,883

94,624

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

90,28190,149

Accumulated depreciation(79,094)(79,502)

Machinery, equipment and vehicles, net

11,187

10,64730,43330,972(27,635)(28,357)

2,797

2,615

Land

84,00884,003

Lease assets

3,728

4,348

Accumulated depreciation(1,826)(2,233)

Lease assets, net

1,901

2,115

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

Construction in progress

2,211

3,786

198,988

197,792

Software

4,438

3,929

Goodwill

20,392

18,595129

68

Total property, plant and equipment
Intangible assets

Lease assets
Other

1,601

1,253

Total intangible assets

26,56023,846260,218

326,689

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

226

216

1,212

1,161

350

241

13,16011,839

(225)

(203)

274,942

339,944

500,492

561,583¥ 649,970¥ 707,063

INVESTOR INFORMATION 2017

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

As of March 31, 2017 and 2016

2016

2017

¥ 34,048¥ 36,130—769

Current portion of long-term loans payable

1,200

5,400

Current portion of bonds

30,000—Accounts payable—other

11,76812,077

Income taxes payable

4,671

6,083

Accrued consumption taxes

1,526

1,513

Accrued expenses

5,364

1,620

Provision for bonuses

973

4,684

Provision for directors’ bonuses

108

107

—

432

274

287

Other

5,342

8,122

Total current liabilities

95,27877,231

22,40017,000119

121

15,971

16,206829

1,001

Deferred tax liabilities

42,926

63,201

Other

14,236

14,871

Total noncurrent liabilities

96,483

112,402

191,762

189,633

Capital stock

54,98654,986

Capital surplus

50,47750,489Retained earnings

255,701

267,127

Treasury stock(20,674)(20,543)

Total shareholders’ equity

340,490352,059

103,362

150,247

Deferred gains or losses on hedges

294

174

Foreign currency translation adjustment

85Remeasurements of defined benefit plans

(69)

(42)

103,596

150,385

Non-controlling interests

14,121

14,985

Total net assets

458,208

517,430¥ 649,970¥ 707,063

Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payable

Provision for removal of noncurrent assets
Other provision

Noncurrent liabilities
Long-term loans payable
Provision for environmental measures
Net defined benefit liability
Lease obligations

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 2017

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

As of March 31, 2017 and 2016

2016

2017

¥ 348,539¥ 355,363

241,466

242,067

107,072

113,296

89,893

93,417

17,17919,87849

25

Dividends income

4,583

5,087

Equity in earnings of affiliates

1,030

986

Other

1,059

1,141

Total non-operating income

6,723

7,241

Interest expenses

777

468

Loss on retirement of noncurrent assets

171

77

Other

275

366

1,224

912

22,67826,207

Gain on sales of investment securities

478

212

Gain on step acquisitions

61—

Total extraordinar y income

539

212

Provision of allowance for removal—

432

Loss on sales of shares of subsidiaries and associates—

215

Loss on valuation of investment securities

105

129

Loss on retirement of noncurrent assets—

101

Impairment loss

130

79

Total extraordinar y losses

235

958

Profit before income taxes

22,982

25,461

Income taxes—current

6,077

8,537

Income taxes—deferred

1,343

39

Total income taxes

7,421

8,576

Profit15,561

16,884

Profit attributable to non-controlling interests

1,064

747

¥ 14,497¥ 16,136

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Profit attributable to owners of parent

Tok yo Broadcasting System Holdings, Inc.

13

INVESTOR INFORMATION 2017

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

As of March 31, 2017 and 2016
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
Loss (gain) on step acquisitions
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
Proceeds from purchase of shares in subsidiaries resulting in change in scope of consolidation
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
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

2016

2017

¥ 22,982
14,385
235
1,439
105
(478)
—
6
(51)
171
(61)
(104)
(4,632)777(1,030)
(439)
1,725
306
1,329
(3,663)33,003
4,877
(776)
942
(5,709)32,337¥ 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(5,954)(2,511)
(464)
661
(118)
(36)
(532)
(8,956)(9,459)(1,236)
(240)
266
(544)
—
1,135
(10,078)—(200)(1,200)—365(3,510)
(157)
—
(623)
(5,326)(49)
18,00556,728—¥ 74,734

769—(1,200)(30,000)
328(4,707)(173)(1,350)(384)(36,718)(2)(10,314)74,734
2,971¥ 67,391

INVESTOR INFORMATION 2017

Major IndicesEarnings per Share

Return on Equity

(Yen)

(%)

92.46
79.12
60.27

61.22

13/3

14/3

15/3

83.12

16/3

17/3

2.9

2.8

13/3

14/3

3.2

3.3

15/3

16/3

3.4

17/3

Ratio of Ordinary Income to Total Assets

Ratio of Operating Income to Net Sales

(%)

(%)

5.6
4.6

3.9

4.4

4.5

14/3

15/3

4.9

3.5
3.2

3.2

3.1

13/3

14/3

15/3

16/3

17/3

13/3

Equity Ratio

Net Assets per Share

(%)

(Yen)

58.7

13/3

63.3

14/3

66.7

68.3

2,689.56

71.1
2,158.00

15/3

16/3

17/3

Tok yo Broadcasting System Holdings, Inc.

13/3

15

16/3

17/3

2,878.29
2,545.60

2,263.65

14/3

15/3

INVESTOR INFORMATION 2017

16/3

17/3

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)

38,226,794

190,434,968 190,434,968 190,434,968 190,434,968 190,434,968

28,590,009 28,404,517

15,981,914 15,871,409

13/3

14/3

15/3

16/3

17/3

13/3

14/3

15/3

16/3

Cash Flows from Operating Activities

Cash Flows from Investing Activities(Millions of yen)

(Millions of yen)

17/3

36,48532,33728,156–2,32627,851
23,038–8,956–11,326–10,078–13,649

13/3

14/3

15/3

16/3

17/3

13/3

14/3

15/3

16/3

17/3

Cash Flows from Financing Activities

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

(Millions of yen)

74,374
68,031

67,391
56,312

56,72814/3

15/3–5,326–25,475–23,567–25,242–36,718
13/3

14/3

15/3

16/3

17/3

Tok yo Broadcasting System Holdings, Inc.

13/3

16

INVESTOR INFORMATION 2017

16/3

17/3

Segment Information
Consolidated Results by Segment(Millions of yen)

FY2017External
sales

y/y change

Operatingincomey/y change

Broadcasting Business¥219,175+5,297¥ 5,973+1,172Multi-Visual Ventures and Cultural Events Business

120,986+1,804

6,168+1,326

Real Estate Business

15,202

–277

7,736

+204

Consolidated Business¥355,363+6,824¥19,878+2,699

Capital Expenditures and Depreciation(Millions of yen)

Consolidated

FY2017

Capital expenditures¥10,627

Depreciation

13,009TBS Holdings

FY2017

Capital expenditures¥

Depreciation

233
2,784

TBS Television

FY2017

Capital expenditures¥ 8,223

Depreciation

7,596

Tok yo Broadcasting System Holdings, Inc.

17

INVESTOR INFORMATION 2017

Segment Information
FY2018 Consolidated and TBS Television Business Results Forecasts(Millions of yen)

2018

Consolidated

FY2018Net sales¥357,000

Operating income

20,000Ordinary income

27,300

Profit attributable to owners of parent

17,000Business Results Forecast by Segment(Millions of yen)

Consolidated

FY2018

Consolidated net sales¥357,000Broadcasting Business

220,000

Multi-Visual Ventures and Cultural Events Business

121,300

Real Estate Business

15,700Consolidated operating income

20,000Broadcasting Business

6,100

Multi-Visual Ventures and Cultural Events Business

5,900Real Estate Business

8,000(Millions of yen)

2018

TBS Television

FY2018Net sales¥218,000

Operating income

9,200

Ordinary income

11,700Net income

8,000

Time/Spot, Program Cost Forecasts
1st half

2nd half

Time

+2.1%

-1.8%

+0.1%

Spot

+1.9%

+1.7%

+1.8%

—

—

¥98,000 million

Program cost

Full year

Note: The estimated figures above, which were announced on May 11, 2017, 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 2017

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

FY2017y/y change¥184,654+3,621Time advertising

85,388+457

Spot advertising

86,240+2,686

Program sales in Japan

8,933

+58

Others

4,091

+418

Operations

28,997+2,647

Real estate

3,065

+95

¥216,717+6,364

Television

Total income

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

150

Time
Spot

121.3

120

104.3
90

103.8

102.4

103.1

101.9

102.6

106.7

106.0

105.9

104.9

104.7

100.3
100.4

104.2

103.9

103.0

94.1

96.5

96.0

Dec.

Jan.

103.1

102.5

101.0

80.5
60
2016

Apr.

2017

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Feb.

Mar.

Q1

Q2

Q3

Q4

Full year● Time

102.8

95.5

98.3

106.1

100.5

● Spot

103.3

101.9

104.6

102.8

103.2

18.7

18.9

18.8

19.1

18.9

TBS share among five key broadcasters

Asa Chan!

SUNDAY MORNING

Tok yo Broadcasting System Holdings, Inc.

19

INVESTOR INFORMATION 2017

HIRUOBI!

TBS Television 2
Spot Advertising Sales Ranks by Business Category
FY2017(%)

Growth rate

Share

1

Information, telecommunications and broadcasting

+4.5

13.6

2

Foods

+5.8

10.9

3

Alcoholic and other beverages

+5.9

10.2

4

Pharmaceuticals

+4.9

9.4

5

Cosmetics and toiletry

+4.6

8.2

6

Automobiles and transportation equipment

+8.6

6.4

7

Financial services

–5.0

6.4

8

Precision instruments and office machines

–13.3

5.0

9

Transportation and leisure

+2.0

4.8

10

Eating out and related services

+13.7

4.5

(Ranked in order of sales proceeds)

TBS Television Business Segment Income
Segment

Full year y/y change

Remarks¥ 3,440+950

The number of events increased over the previous year. Revenue rose due to Musée du Petit
Prince de Saint-Exupéry à Hakone, which achieved good results throughout the year, as wellas well-received exhibitions, such as Van Gogh and Gauguin, Reality and Imagination andHiroshige Vivid.

4,041

+395

Revenue increased due to successful Haikyuu!! Winners and Losers and Romeo and Juliet in
the fourth quarter, in addition to a number of events including TAKE FIVE2 that achieved goodresults for the full year.

Movies

1,548

-165

Revenue decreased due to a decline in the number of movies released compared with theprevious year, although 64 (SIX FOUR): Part 1 and Part 2, including DVD versions, were big hits.

Animation

977+2

Multi-visual business

4,945

+912

Revenues from DVDs increased significantly despite the contraction of the market, reflecting therecord hit The Full-Time Wife Escapist in the fourth quarter as well as 99.9, which achieved
good results for the full year. On-demand content remained firm.

Overseas business

2,892

+705

Revenue rose due to very strong sales in Asian markets throughout the year, as well as the
expansion of SASUKE overseas and strong sales of animation programs in China.

Pay-TV business

9,044

+332

Market share expanded thanks to efforts to improve programming and promotions. Revenue
increased due to the success of two baseball teams for which the broadcasting rights are heldby us.

Licensing business

934

-27

1,172

-458

¥28,997+2,647

Cultural business (events)
OperationsShow businessdivision
Moviesandanimationbusiness

Content
business
division(Millions of yen)

Digital/new business
Total

The World Unknown to Matsuko

Revenue edged up, reflecting strong sales of programs overseas, primarily in Asia.

Revenue declined, reflecting the effects of revisions to online shopping programs, although
Gudetama continued to achieve good results.
Revenue declined mainly due to the termination of content production for carriers.

Pittanko Kankan

Tok yo Broadcasting System Holdings, Inc.

20

INVESTOR INFORMATION 2017

Monitoring

TBS Television 3
FY2017 Viewer Ratings
All day

Golden time*

Prime time**TBS

6.1 (4th)

9.8 (4th)

9.7 (4th)NTV

8.4 (1st)

12.2 (1st)11.9 (1st)TV Asahi

7.3 (2nd)

10.3 (3rd)

10.6 (2nd)TV Tokyo

2.8 (6th)

6.5 (6th)

6.2 (6th)

Fuji TV

5.7 (5th)

8.0 (5th)

8.0 (5th)NHK

6.9 (3rd)

11.3 (2nd)9.8 (3rd)

HUT

41.0

60.9

58.7

Ratings for April 4, 2016 to April 2, 2017, 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)

FY2017FY2016y/y change

Q1¥23,722¥23,528+193

Q224,932

24,725+206

Q323,80523,473+332

Q425,71824,398+1,320

Direct expenses

20,311

18,928+1,383

Indirect expenses

5,407

5,471

–64

Fiscal year cumulative¥98,176¥96,125+2,050FY2018 forecast¥98,000

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

Brass Dreams

QuartetTok yo Broadcasting System Holdings, Inc.

21

IQ246, The Cases of a Royal Genius

INVESTOR INFORMATION 2017

Financial Data of Major Group Companies
TBS Radio Inc.

(Millions of yen)

FY2017
AmountNet salesy/y change¥10,825+150

Operating income

357

+10

Ordinary income

364

+12

Net income

239

+29

Recorded the highest ratings for 96 consecutive periods from August 2001 to June 2017.

BS-TBS, INC.

(Millions of yen)

FY2017
AmountNet salesy/y change¥17,031+928

Operating income

2,557

+196

Ordinary income

2,595

+201

Net income

1,781

+220

Grand Marche, Inc.

(Millions of yen)

FY2017
AmountNet salesy/y change¥12,582–1,356

Operating income

312

+157

Ordinary income

326

+153

Net income

221

+136

Tok yo Broadcasting System Holdings, Inc.

22

INVESTOR INFORMATION 2017

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

FY2017
AmountNet salesy/y change¥65,664+284

Operating income

2,572

+257

Ordinary income

2,434

–300

Net income

1,062

–477

© 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 2017

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 2017

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/