TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

INVESTORINFORMATION

2012

Consolidated Financial Highlights
Net Sales

Operating Income

Millions of yen

Millions of yen

372,306
315,175

351,262

342,754

20,624

346,538

18,457
12,162
7,705
3,343

08/3

09/3

10/3

11/3

12/3

08/3

09/3

Ordinary Income

Net Income (Loss)

Millions of yen

Millions of yen

23,088

10/3

11/3

12/3

19,022
19,97911,671

14,313
9,215

1,655

103

3,902
–2,313
08/3

09/3

10/3

11/3

12/3

08/3

Total Assets

09/3

10/3

11/3

342,231357,076

344,658

09/3

10/3

11/3

12/3

Total Net Assets

Millions of yen

Millions of yen

627,683
537,211556,780

08/3

09/3

593,023

10/3

11/3

360,376

555,159

12/3

08/3

322,597

12/3

Contents
2 To Our Stakeholders
3 At a Glance
4 Organization
5 Corporate Data
6 Business Report
10 Consolidated Financial Statements

14
16
18
21
23

Major IndicesSegment Information
TBS Television
Financial Data of Major Group Companies
TBS Networks

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 this report. Such risks include, but are not limited to, market trends, economic conditions and changes in industry regulations.

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

1

To Our Stakeholders
The business environment for thedigitalization, we are taking steps to achieve

broadcasting industry is undergoing major

diversified expansion of revenue sources. Inchange, factors in which are the overseas

addition to efforts to increase revenue fromtransfer of businesses, the rapid demographic

existing business operations—stock movies

trend toward smaller families and an older

and established events, events in Sacas

population structure, and the increasingly

Square, pay television, and shopping—we will

diverse range of devices made possible

also actively develop new businesses. At theby digitalization.

same time, we are pressing forward with bold

The TBS Group will continue to target

plans regarding content development forsustained growth by adapting swiftly to theseapplications such as social games andchanges in the business environment andsmartphones and with content rollout to Asia

working to strengthen systems across the Group.

and other overseas markets. Our business partnership withIn the consolidated fiscal year ended March 31, 2012, we

Nikkei Inc. is likewise designed to further expand thesepurchased all Company stock held by Rakuten, Inc. We also

new businesses.

completed the transfer of BS-TBS, INC. to consolidated

The Group is thus facing the tasks that it needs to tackle

subsidiary status and the divestiture of YOKOHAMA

going forward. These are to (1) strengthen the broadcasting

BAYSTARS BASEBALL CLUB, INC. In this way, we moved tobusiness and lift audience ratings into the industry’s top rank

settle outstanding operational issues in the landmark year ofin the television business, which is the Group’s core activity;

our 60th anniversary.

(2) achieve diversified expansion of revenue sources by

In the television business, audience ratings for the fiscal

responding to the rapid growth of digital business andyear under review showed increases—albeit slight—year on

actively penetrating both domestic and overseas markets;

year in each of the all day, golden time, and prime time slots.

and (3) improve revenue capacity across the Group. While

Using successful programs with a regular daily slot as amaintaining and enhancing its special skills, each of our

growth driver, we aim to further improve audience ratings

Group companies is determined to improve market

with proactive programming and strengthened content. While

competitiveness on the cost front and thereby

working to achieve efficiency in the production process, weraise profitability.

are committed to making quality programs distinctive

By tackling these three tasks, we will pursue the goal of

to TBS, thus attracting increased support from viewers

boosting corporate value and maximizing the profits to be

and advertisers.

shared with stakeholders.

BS-TBS, INC., which became a consolidated subsidiary

Our Group mission is to establish ourselves as the “bestin the fiscal year under review, continued to show

media Group broadcasting the most powerful content.” By

encouraging growth, helped by an increase in media value.

doing our utmost to realize this mission and thereby achieve

By maximizing synergies among all Group companies, wesustained growth, we are committed to discharging the

aim to further consolidate the Group’s revenue base.

duties entrusted to us by our stakeholders.

In radio broadcasting, we successfully defended theIn our efforts to realize the commitments and goals set

position at the top of the ratings table, which we have held forout above, I ask for the continued understanding and support

10 years and eight months. Business conditions in the radioof our stakeholders.

industry have grown increasingly difficult, but by applying
cost control ever more stringently and coordinating business

June 2012

projects with the broadcasting business, we are confident ofToshichika Ishihara, President

securing fresh revenue streams.
Turning to our business divisions, to adapt appropriately

Tokyo Broadcasting System Holdings, Inc.

to the rapid changes in the business environment brought byTokyo Broadcasting System Television, Inc.

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

2

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

Terrestrial TV
broadcasting

Net & mobile
contents

Planning &production ofaudio & visualcontents

Terrestrial radio
broadcasting

Manufacture &sale of cosmetics

Eating & drinking
establishments

Satellite
broadcasting

Real estateleasing

Miscellaneous
retailing

Business Activities (Year ended March 31, 2012)

Broadcasting Business

4.4%

36.7%

¥203.9 billion
58.8%

Multi-Visual Ventures and Cultural Events Business¥127.3 billion
Real Estate Business¥15.2 billion

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

3

Organization(As of January 1, 2012)

Tokyo Broadcasting System Holdings, Inc.
Broadcasting Business

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

StylingLife Holdings Inc.
PLAZASTYLE CORPORATION B&C LABORATORIESTBS Radio & Communications, Inc.
Light-up Shopping Club Inc.

BS-TBS, INC.

CP COSMETICS

TBS-VISION, Inc.

Maxim’s de Paris Ltd.

FF TOHO INC.
ProCam, Inc.

Grand Marche, Inc.

AKASAKA Video Center Co., Ltd.

TC Entertainment Incorporated

DREAMAX TELEVISION, INC.

TBS TriMedia, Inc.

AKASAKA GRAPHICS ART, INC.

NICHION, Inc.

Art Communication System, Inc.

TBS Service, Inc.

TELECOM SOUND, Inc.

OXYBOT, Inc.

Japan Artvideo Service Collaborative, Inc.
Vucast, Inc.

Equity-method affiliates

TBS International, Inc.
Tomo-Digi Corporation

TBS MEDIA RESEARCH INSTITUTE INCORPORATED

Totsu Inc.
TLC Co., Ltd.

Real Estate Business
RG MARKETING CO., LTD.
Akasaka Heat Supply Co., Ltd.
Midoriyama Studio City, Inc.
TBS Sunwork, Inc.
TBS Kikaku Co., Ltd.

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

4

Corporate Data
(As of April 1, 2012)

Date of Establishment

May 10, 1951 (Registered on May 17)

Head Office

5-3-6 Akasaka, Minato-ku, Tokyo 107-8006, Japan
URL: http://www.tbsholdings.co.jp/
Stock code: 9401, TSE First Section

Paid-in Capital¥54,986,892,896

Number of Employees

Tokyo Broadcasting System Holdings, Inc.

391

Tokyo Broadcasting System Television, Inc.

922

TBS Radio & Communications, Inc.

56

1

2

3

4

5

6

1. Akasaka Biz Tower
2. TBS Holdings Head Office
3. Scene of sub-control room at TBS Television
4. On set at TBS Television studio
5–6. Akasaka Sacas

Major Shareholders(as of March 31, 2012)

Number of shares held
(shares)

Percentage held(%)

9,310,500

6.09

8,825,400

5.78

Nippon Life Insurance Company

7,367,735

4.82

Mainichi Broadcasting System, Inc.

6,166,000

4.03

Sumitomo Mitsui Banking Corporation

5,745,267

3.76

Mitsui Fudosan Co., Ltd.

5,713,728

3.74

MITSUI & CO., LTD.

4,288,000

2.80

BIC CAMERA INC.

4,190,000

2.74

Kodansha Ltd.

3,771,200

2.47

Panasonic Corporation

3,083,180

2.02

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)

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

5

Business Report
From April 1, 2011 to March 31, 2012

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

TelevisionDuring the fiscal year under review, the Japanese economy

In terrestrial television time sales, regular programming

experienced a sharp downturn due to the disruption of thesales were flat at the levels of the previous fiscal year. In

supply chain and power supply restrictions following thespite of the contribution of IAAF World Championships Daegu

Great East Japan Earthquake, which occurred in March 2011.

2011 in August, total terrestrial television time sales fell

Since then, there have been some signs of gradual recovery

slightly short of the figure from the previous fiscal year inin production and employment in the corporate sector,

which a series of major programs in the special

supported by all-out public-private efforts toward restoration,

programming such as the FIFA World Cup, the 2010 FIVB

although downside risk remains in the economy due to rising

Women’s Volleyball World Championship, and the TBS 60th

crude oil prices and concerns about power shortages.

anniversary drama were aired one after another.

In the broadcasting industry, the spot advertising market

Spot sales increased slightly from the previous fiscal

slumped sharply due to the aftermath of the Great East

year on a full-year basis, despite the significant decline in theJapan Earthquake, but started to gradually rally sometime

spot advertising volume in the Tokyo area in April–May 2011

around summer and remained firm throughout the second

due to the effect of the Great East Japan Earthquake, as thehalf of the fiscal year under review. Time sales also showedvolume has picked up since June 2011 and significantly

some signs of bottoming out at last after a period of

outperformed year-on-year in the second half of the fiscal

continuous decline.

year under review.

In this operating environment, the TBS GroupThe average audience rating of TBS Television across all(hereinafter referred to as “the Group”) made all possible

time slots for the fiscal year under review increased by 0.3

efforts to further strengthen its core terrestrial television

percentage point from the previous fiscal year to 6.8%, led byprograms. Furthermore, the Group worked to build operating

across-the-board information programs such as Mino Montarevenues and business development revenues through events

no Asa Zuba!, Hanamaru Market, and Hiruobi. Moreover, theheld in the Akasaka Sacas commercial complex and madeaudience ratings by time slot also rose in all time slots

other efforts to ensure revenues from a broad range ofincluding the golden time slot (7:00 p.m. to 10:00 p.m.) (up 0.3

business segments.

percentage point to 10.0%) and the prime time slot (7:00 p.m.

As a result of these developments, consolidated net

to 11:00 p.m.) (up 0.2 percentage point to 10.1%).

sales of the Group in the fiscal year ended March 31, 2012

In the variety show category, Pittanko Kankan, Nakai

increased by 1.1% from the previous fiscal year to ¥346,538

Masahiro’s SMAP Friday, and SECRET ARASHI’S TV SHOW

million, and ordinary income increased by 55.3% to ¥14,313

continued to deliver high ratings. In addition, Bakuhou! THE

million. Net income was ¥11,671 million, a considerable

Friday, a new program that started in October 2012 (on Friday

improvement of ¥11,568 million from the previous fiscal year,

from 7:00 p.m.) is growing into a popular program with recent

owing to factors such as gain on sales of subsidiaries andaudience ratings exceeding 10%. HONOO-NO TAIIKU-KAI TV

affiliates’ stocks and a decrease in the loss on valuation of

on Monday from 7:00 p.m. is also increasingly recognized as

investment securities.

a popular sports variety program after revamping of thecontent from the time it was aired as a special program.

Broadcasting BusinessIn the drama category, Nichiyo Gekijo JIN—FINAL—, aired

Consolidated net sales from the Broadcasting Businessas a TBS 60th anniversary drama series, delivered anincreased by 3.6% from the previous fiscal year to ¥203,935

average audience rating of 21.3%, outperforming themillion, while operating income improved by ¥2,766 million

previous series. Other popular Nichiyo Gekijo dramas

to ¥600 million.

included Antarctica, which was also aired as a TBS 60thTOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

6

Business Report
From April 1, 2011 to March 31, 2012anniversary drama series and gained an average audience

BS digital broadcasting saw intensified competition in

rating of 18.0% as it moved the audience as a story

the fiscal year under review with new participation of 19

epitomizing postwar Japan, and Unmei no Hito, with anchannels. In this operating environment, BS-TBS, INC.

average audience rating of 12.0%. One of the mostworked to improve profitability by providing programs withrecognized TBS TV dramas, Relentlessness is Found

attractive contents such as a full live coverage of golf

Everywhere, loved by many fans all through the series, came

tournaments and regular broadcasting of a 3D TV program.

to a crowning conclusion at its two-hour special last episode,The company became a consolidated subsidiary of thewhich delivered an average audience rating of 22.2%.

Company as of July 1, 2011 to give a fresh management start.

In the sports category, the strength of TBS TV sports

Note: All audience ratings are household audience ratings in the Kanto region,
surveyed by Video Research Ltd.

programs was again demonstrated by, among others, theTBS 60th anniversary special program IAAF WorldChampionships Daegu 2011, which recorded an averageRadioaudience rating of 12.4% during the competition hours in the

Supported by favorable audience ratings, time sales fromprime time slot. On August 10, 2011, the Kirin Challenge Cup

advertising by major sponsors in the toiletries and2011—Japan vs. South Korea (soccer) and the immediately

communications sectors was robust, and advertising byfollowing Boxing World Champion Kazuto Ioka’s First

government agencies and municipalities to promote tourist

Defending Title Match recorded average audience ratings ofattractions increased. However, total time sales fell short of

22.2% and 16.6%, respectively, and the average rating forthe results of the previous year due to the significant effect ofover three hours of sports broadcasting across the two

the decrease in on-line program.

programs was 20.3%. Soccer TV programs generally

Spot sales increased from the previous fiscal year as

attracted large audiences. For example, FIFA World Cup

revenue from live advertising by the radio personalities was

Qualifiers Asian Third Round—Japan vs. Uzbekistan hit an

brisk particularly in the areas of education and health food.

average rating of 22.5% and North Korea vs. Japan in the

In terms of programming, long programs on weekdays

same round, which was covered live from Pyongyang,continued to boast high popularity. Ranking first in audiencedelivered an average rating of 15.5% despite its time slot in

rating surveys in the Tokyo Metropolitan Area for 64

the early evening. The Kirin Cup 2011—Japan vs. Czech

consecutive periods (10 years and 8 months), TBS Radio has

Republic and the Algarve Women’s Football Cup 2012—

made its position as a leading radio company in the TokyoJapan vs. Norway also gained average ratings of 23.3%

Metropolitan Area permanent. We had a number of stationand 18.7%, respectively.

opening anniversary special programs as TBS 60th

In the news category, N Suta and NEWS23X, among

anniversary projects including the reconstruction of the eve

others, continued to report news on topics related to theof the station opening in Kume Hiroshi Radio Nandesukedo

Great East Japan Earthquake. JNN, a television networkwith audience participation during the three daysorganized around TBS as a key station, established a Sanriku

immediately before the anniversary on December 25, 2011,

temporary station in Kesennuma to get footage of and report

the invitation of past radio personalities who appeared ondaily developments in the quake-afflicted areas and aired a

Sunday afternoon in Bakusho Mondai no Nichiyo Sunday, and15-hour special program, Day of News 2011—Memories,

2-night broadcasting of a dramatized version of Soremomata

Documents, and Wishes, at the end of 2011 to reexamine theChiisana Hikari specially written for this occasion by a Naoki

turbulent year for Japan and to cover exhaustively thePrize winner Mitsuyo Kakuta, featuring Hikari Ishidanation’s efforts to rebuild itself, based on the all-out efforts

and others.

of TBS/JNN in information gathering.

In relation to the Great East Japan Earthquake, we

As of March 31, 2012, 28 companies throughout Japan

reported the current status of the affected areas in various

were affiliated with the Group’s JNN television network. The

programs on or around March 11, 2012, which was the firstnumber was unchanged from the previous fiscal year.

anniversary of the disaster. We also aired a one-hour special
program on that day from 2:30 p.m. and another two-hour

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

7

Business Report
From April 1, 2011 to March 31, 2012

special program, The Great East Japan Earthquake as

In the video business, a DVD edition of the Friday TV

Reported from the Afflicted Areas – Lessons to be Handed

drama He is Beautiful enjoyed strong sales at the start of theDown, from 6:00 p.m. from Sendai in cooperation with Tohoku

release. In addition, 3-nen B-gumi Kinpachi Sensei DVD

Broadcasting Co., Ltd. In addition, we held an event at Hibiya

Complete Box has enjoyed also tremendous popularity

Park in Tokyo in which we offered to repair and/or replace

despite its high selling price exceeding ¥200,000. Other

batteries of radios for free jointly with Nippon Cultural

popular DVD boxes included a TBS 60th

Broadcasting Inc. and Nippon Broadcasting System, Inc., who

anniversary Nichiyo Gekijo drama,

agreed to cooperate with us in response to the request of

Antarctica, 8-ji Dayo! Zenin Shugo Golden

TBS Radio.

Collection, and The Best Ten: Akina

In the broadcast related business, Radicon, throughNakamori Premium Box. As for cinema

which chargeable audio contents are provided online, and thefilms, we released The Wings of the Kirin,

business of selling goods in collaboration with radio

Antoki no Inochi, Genji Monogatari—programs performed well. In the housing business, overall

Sennen no Nazo, Nihon Retto Ikimonotachi

profit increased from the previous fiscal year with the

no Monogatari, and Ouran High School

increased number of subdivisions within existing sites

Host Club, among others, in addition tocombined with the effect of cost reduction.

K-ON! MOVIE, which is enjoying overwhelming popularity

As of March 31, 2012, 34 companies throughout Japan

K-ON! MOVIE©kakifly.HOUBUNSHA/Sakura High Band

among animation fans.

were affiliated with the TBS radio network JRN. This number

In the program syndication business, we succeeded inis unchanged from the previous fiscal year.

the pre-sales of Nichiyo Gekijo JIN—FINAL—, produced as a
TBS 60th anniversary drama series to be aired in 80

Multi-Visual Ventures and Cultural Events

countries worldwide. The format business (business to sell

Although net sales from the Multi-Visual Ventures andprogram concepts, etc.) targeted at overseas markets was

Cultural Events Business decreased by 1.7% from thealso brisk as, for example, the fourth season of the U.S.

previous fiscal year to ¥127,324 million, operating income

version of SASUKE is scheduled to be on air through two U.S.

increased by 91.9% to ¥5,144 million.

national networks. One of them is NBC, one of the five major
networks in the United States and the other is a cable TV

In the cultural events business, Akasaka ACT Theater

station G4.

presented, among others, the Broadway musical A Chorus

In the communication satellite business, TBS On

Line, Musical Roméo & Juliette, He is Beautiful on Theater, andYakai (“Soirée”) by Miyuki Nakajima. We also held highly

Demand (video distribution service) expanded its services

successful live events for a Korean drama Marry Me, Mary!,targeted at smartphones including the launch of the TBS On

starring Jang Keun-Suk, a popular Korean actor, in Tokyo

Demand Android video distribution service, which is directly

and Osaka. The Tetsuya Kumakawa K-Ballet Company

operated by TBS On Demand. The number of subscribers forcontinued to enchant the fans by staging productions such as

our communication satellite program TBS Channel exceeded

Romeo and Juliet, Swan Lake, The Nutcracker, and Cinderella.

six million households as of January 31, 2012 as a result of

In the exhibition business, The Dinosaur EXPO 2011 at theits efforts to enhance the content to include original dramas

National Museum of Nature and Science drew nearly 590,000

and K-Pop live performances.

visitors, while we have been holding Ritratto di Venezia—MilleIn the license business, Nichiyo Gekijo JIN—FINAL—,

Anni di Storia (“World Heritage in Venice Exhibition”) on a

produced as a TBS 60th anniversary drama series

nationwide basis as part of TBS 60th anniversary projects. In

contributed to sales under the collaboration strategy

addition, a new exhibition The Inca Empire Revealed: Century

implemented jointly with a major convenience store chain

After the Machu Picchu “Discovery” made an excellent start on

aimed at combining sales of merchandise such as Andonatsu,

March 10, 2012.

which appeared in the drama, with program promotion. In
addition, a Hiruobi book with a shopping basket cooler bag
sold 80,000 copies. Sales related to the popular animation
K-ON! continued to grow as over 500 merchandises wereTOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

8

Business Report
From April 1, 2011 to March 31, 2012

commercialized in one year including a social network gamefor use in terrestrial digital broadcasting installed at Tokyo

developed in conjunction with the release of the cinema film

Skytree. We are also upgrading the facilities in the digital

version of the animation.

terrestrial relay stations in cooperation with otherIn the shopping business, we produced four special

commercial TV broadcasting companies and NHK in order to

shopping programs and achieved the highest sales everaccommodate new technologies for broadcasting in the areas

despite the concerns about the effect of the earthquake

where access to terrestrial digital broadcasting is limited anddisaster. In addition, the StylingLife Group, a group of

frequency resetting (repacking) after the termination ofcompanies engaging mainly in the retail business, ensured aanalog broadcasting.

considerable revenue increase by making efforts to control

In addition, we upgraded the No. 1 transmitter at TBS

costs under the tough operating environment.

Radio Toda Transmitter Station, which is more than 20 years

In the digital business, on-campus digital signageold (installed in 1989), as well as the main line/control

services, which started in major universities in the Tokyo

facilities for the purpose of ensuring stable radio

metropolitan area, have grown into a medium with anbroadcasting program administration.

exposure to a potential audience of over 450,000 people in

As for program production facilities, we upgraded theapproximately 60 universities all over Japan using

visual/audio system of Midoriyama M2 Studio (the main

approximately 100 digital displays. In addition, we enteredfacility for drama production) in addition to the renewal of theinto the game development business as a new source of

camera system carried out in the previous fiscal year in orderrevenue and are providing a social network game adaptation

to ensure smooth operation. In addition, we introduced HDof the TV drama SPEC on Mobage, GREE, etc.

technologies to the medium-sized broadcasting helicopter
and relay facilities that have been in service since 1998. As aReal Estate Businessresult, the combination of a high-sensitivity camera, vibration

Net sales from the Real Estate Business decreased by 6.5%

control equipment, and a 40x high magnification lens enablesfrom the previous fiscal year to ¥15,277 million, andus to film the scene more clearly and with less blurring fromoperating income decreased by 10.6% to ¥6,421 million.

high up in the sky even under unfavorable conditions such as

Akasaka Sacas, which has reached the third anniversary

in twilight.

of its opening, has established itself as a popular culturaland entertainment center through the provision of various

3 Capital Procurement

performances and events held in Sacas Square.

Interest-bearing debt of the Group at the end of the fiscal
year under review was approximately ¥128,700 million

2 Capital Investment(excluding lease obligations), consisting of ¥50,000 million in

Total capital investment in the fiscal year under review wasbonds payable, approximately ¥58,700 million in long-term¥9,900 million. The principal investment item was facilities

loans payable (including the current portion), and ¥20.000

related to digital terrestrial broadcasting.

million in short-term loans payable.

The Company completed the transition to digital

In order to ensure flexible access to business funds

terrestrial broadcasting in the Kanto region in July 2011 andand operating capital, as of the end of the fiscal year

continued to make efforts to upgrade and expand

under review, the Company and StylingLife Holdings Inc.

broadcasting facilities and program production facilities in

had established the commitment line agreements,

the fiscal year under review.

totaling ¥25,000 million with multiple financial institutions

With regard to broadcasting facilities, we are preparing(the balance of the funds drawn is ¥20,000 million, andfor the start of the terrestrial digital broadcasting scheduled

the available balance is ¥50,000 million).

for spring 2013 targeted at nearly 16 million households in

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

the Kanto area by replacing the current TV transmittersome of the account receivables are in the process

station installed at Tokyo Tower with broadcasting facilities

of liquidation.

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

9

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

As of March 31, 2012 and 2011

2011

2012

¥ 71,510¥ 79,001

Notes and accounts receivable—trade33,49636,767

Merchandise and finished goods

7,006

6,726

Program rights and work in process

6,305

6,142

778

627

Prepaid expenses

8,890

8,410

Deferred tax assets

1,946

2,696

Deposits received

48,875

—

Other

6,212

6,112

AssetsCurrent assets
Cash and deposits

Raw materials and supplies

Allowance for doubtful accounts
Total current assets

(97)

(116)

184,924

146,368

Noncurrent assets
Property, plant and equipment

190,577

190,731

Accumulated depreciation(75,535)(79,621)

Buildings and structures, net

115,041

111,109

Machinery, equipment and vehicles

85,651

83,281

Accumulated depreciation(74,758)(74,906)

Machinery, equipment and vehicles, net

10,892

8,375

Buildings and structures

Tools, furniture and fixtures

21,076

22,588

Accumulated depreciation(18,504)(20,262)

Tools, furniture and fixtures, net
Land

2,571

2,326

84,72084,553

6,610

6,725

Accumulated depreciation(2,933)(3,513)

Lease assets, net

3,677

3,211

Construction in progress

3,322

4,467

220,227

214,044

Lease assets

Total property, plant and equipment
Intangible assets
Software

4,796

5,024

Goodwill

25,571

23,966

441

458

Other

2,095

2,048

Total intangible assets

32,90531,497

139,958

149,363

Lease assets

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets

338

414

2,370

1,472

Long-term prepaid expenses

1,649

1,046

Other

11,216

11,767

(567)

(815)

154,965

163,248

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

10

408,098

408,790¥ 593,023¥ 555,159

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

As of March 31, 2012 and 2011

2011

2012

¥ 32,548¥ 34,688

Short-term loans payable

36,72220,000Current portion of long-term loans payable

1,750

11,750Current portion of bonds

20,000—Accounts payable—other

9,886

11,782

Income taxes payable

2,757

3,123

764

827

6,052

5,070

Provision for directors’ bonuses

114

184

Other provision

885

1,058

5,577

6,672

117,058

95,156

Bonds payable

30,00050,000Long-term loans payable

58,75047,000

Provision for retirement benefits

12,573

12,978

Lease obligations

3,064

2,235

Deferred tax liabilities

10,406

10,121

Other

16,51015,069Total noncurrent liabilities

131,305

137,405

248,364

232,561

Capital stock

54,98654,986

Capital surplus

60,25460,254Retained earnings

211,948

222,303(96)(48,972)

327,094

288,572

Valuation difference on available-for-sale securities

8,399

20,329Deferred gains or losses on hedges(1,002)(357)

Foreign currency translation adjustment

(180)

(186)

Total valuation and translation adjustments

7,216

19,785

Minority interests

10,348

14,238

Total net assets

344,658

322,597¥ 593,023¥ 555,159

Liabilities
Current liabilities
Notes and accounts payable—trade

Accrued consumption taxes
Accrued expenses

Other
Total current liabilities
Noncurrent liabilities

Total liabilities
Net assets
Shareholders’ equity

Treasury stock
Total shareholders’ equity
Valuation and translation adjustments

Total liabilities and net assets
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

11

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

Years ended March 31, 2012 and 2011

2011

2012

¥ 342,754¥ 346,538

245,305

244,086

97,448102,451

89,74290,288

7,705

12,162

Interest income

112

78

Dividends income

2,622

3,182

Equity in earnings of affiliates

500

79

Other

916

1,089

4,151

4,429

1,671

1,407

Loss on retirement of noncurrent assets

282

228

Other

687

643

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

Total non-operating income
Non-operating expenses
Interest expenses

2,641

2,279

9,215

14,313

—

5,959

6,814

302

Gain on step acquisitions—

210

Gain on liquidation of subsidiaries and affiliates

89

—

6,904

6,471

11,644

1,913

Loss on liquidation of subsidiaries and affiliates—

462

Early extra retirement payments—

333

Loss on valuation of golf club membership—

250

Impairment loss

138

201

Loss on purchase of treasury stock—

149

Loss on revision of retirement benefit plan

38

20

Loss on adjustment for changes of accounting standard for asset retirement obligations

516—

Loss on disaster149—

12,487

3,330

Income before income taxes and minority interests

3,632

17,454

Income taxes—current

3,657

3,956

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of subsidiaries and affiliates' stocks
Gain on sales of investment securities

Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities

Total extraordinary losses

258

362

Total income taxes

3,916

4,319

Income (loss) before minority interests(284)

13,135

Minority interests in income (loss)

(387)

1,463

103

¥ 11,671

Income taxes—deferred¥

Net income
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

12

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

Year ended March 31, 2012 and 2011

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of long-term prepaid expenses
Amortization of goodwill
Gain on valuation of investment securities
Gain on sales of investment securities
Gain on sales of stocks of subsidiaries and affiliates
Retirement benefit expenses
Loss on retirement of noncurrent assets
Increase 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 in inventories
Decrease in prepaid expenses
Increase (decrease) in notes and accounts payable—trade
Decrease (increase) in consumption taxes refund receivable
Loss on adjustment for changes of accounting standard for asset retirement obligations

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 investments in subsidiaries resulting in change in scope of consolidation
Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation

Other, net
Net cash provided by (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
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sale and leaseback
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of periodTOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

13

2011

2012

¥ 3,632
16,759616
1,605
11,644(6,814)
—
431
282
30
(2,734)
1,671
(500)
2,718
151
2,331
(3,471)812
516
649
30,333
2,744(1,670)1,401(2,771)30,036¥ 17,454
15,078
545
1,946
1,913
(302)
(5,959)576
377
265(3,261)
1,407(79)(2,272)
961
572
2,014
(13)
—
223
31,4503,263(1,476)525(3,689)30,072(6,597)(3,041)(239)
16,113
—
—
43
6,278

(6,057)(2,346)(2,703)466(1,389)5,911
387(5,731)

6,288(21,528)(1,500)
—
—
1,351
(3)
(956)
(77)
(610)
(17,037)(92)
19,18552,249¥ 71,434

2,283(14,842)(1,750)19,899(20,000)—(1)(1,336)(44)(1,201)(16,993)
18
7,367
71,434¥ 78,801

Major Indices
Net Income per Share

Return on Equity

Unit: yen

Unit: %

100.14
5.1
74.71
3.6

8.71

0.5

0.54

0.0
–0.7

–12.18
08/3

09/3

10/3

11/3

12/3

08/3

09/3

10/3

11/3

12/3

Ratio of Ordinary Income to Net Assets

Ratio of Operating Income to Net Sales

Unit: %

Unit: %

6.5

4.2
3.7

5.0
2.5

3.5

1.5

2.2

0.7
08/3

09/3

10/3

1.0
11/3

12/3

08/3

09/3

10/3

Equity Ratio

Net Assets per Share

Unit: %

Unit: yen

11/3

66.6
59.5

08/3

09/3

1,884.02

55.2

56.4

55.5

10/3

11/3

12/3

08/3

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

14

12/3

2,025.89
1,743.69

09/3

1,822.22

1,759.70

10/3

11/3

12/3

Major Indices
Number of Shares Issued at the End of the Term

Amount of Treasury Stock at the End of the Term

(Including Treasury Stock)

Unit: shares

Unit: shares

38,225,599

190,406,968 190,434,968 190,434,968 190,434,968 190,434,968

08/3

09/3

10/3

11/3

410,731415,314418,165

453,652

08/3

09/3

10/3

11/3

12/3

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Unit: million yen

Unit: million yen

36,406

12/3

6,278
30,07230,036–5,731
21,174–13,754

18,646–27,011–60,082
08/3

09/3

10/3

11/3

12/3

08/3

09/3

10/3

11/3

12/3

Cash Flows from Financing Activities

Cash and Cash Equivalents, at End of Period

Unit: million yen

Unit: million yen

78,80142,49371,434

48,571

52,24929,764–1,379–12,973

08/3

09/3

10/3

–17,037–16,993

11/3

12/3

08/3

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

15

09/3

10/3

11/3

12/3

Segment Information
Consolidated Results by Segment(Unit: million yen)

FY2012External
sales

y/y change

OperatingincomeBroadcasting Business¥203,935+7,075¥Multi-Visual Ventures and Cultural Events Business

127,324

Real Estate Business
Consolidated Businessy/y change

600+2,766–2,2375,144+2,463

15,277–1,054

6,421

–764

¥346,538+3,783¥12,162+4,457

Capital Expenditures and Depreciation(Unit: million yen)

Consolidated

FY2012

Capital expenditures¥ 8,910Depreciation

13,920TBS Holdings

FY2012

Capital expenditures¥

543

Depreciation

3,410

TBS Television

FY2012

Capital expenditures¥ 5,771

Depreciation

8,245

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

16

Segment Information
FY2013 Consolidated and TBS Television Business Results Forecasts(Unit: million yen)

2013

Consolidated

FY2013

Net sales¥357,200

Operating income

13,200Ordinary income

13,900Net income

7,000

Business Results Forecast by Segment(Unit: million yen)

Consolidated

FY2013

Consolidated net sales¥357,200

Broadcasting Business

214,400

Multi-Visual Ventures and Cultural Events Business

127,300

Real Estate Business

15,400Consolidated operating income

13,200Broadcasting Business

1,500

Multi-Visual Ventures and Cultural Events Business

5,500

Real Estate Business

6,100(Unit: million yen)

2013

TBS Television

FY2013

Net sales¥217,100

Operating income

4,000

Ordinary income

5,300

Net income

3,300

Time/Spot, Program Cost Forecasts
1st half

2nd half

Full year

Time

+4.0%

+2.5%

+3.3%

Spot

+10.1%

+0.9%

+5.0%

—

—

¥98,500 million

Program cost

Note: The estimated figures above, which were announced on May 11, 2012, are subject to revision. For the most up-to-date estimated figures, please see
the Company's web site.
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

17

TBS Television1

Sunday Morning

Pittanko Kankan

Mino Monta no Asa Zuba!

Breakdown of TBS Television Income(Unit: million yen)

FY2012

Televisiony/y change¥180,109–504

Time advertising

85,415–1,138Spot advertising

83,504+1,343

Others

7,351

–863

Program sales in Japan

3,839

+155

Operations

25,586–2,047

Real estate

2,885

–16

Total income¥208,581–2,568Year-on-Year Changes in Time/Spot Earnings(Unit: %)

130

Time

121.4

Spot
111.0

110

103.6
98.2

98.8

101.9

113.5
109.7

109.0

106.6

114.3
100.4

109.5

101.8

100.6

90

96.1
88.2
82.9

90.4

97.6
94.7

90.8

85.3
80.8

70
2011

Apr.

2012

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Q1

Q2

Q3

Q4

Full year● Time

95.5

105.6

90.1

104.9

98.7

● Spot

90.1

101.2

109.7

105.1

101.6

19.5

19.7

20.0

19.9

19.8

TBS share among five key broadcasters

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

18

TBS Television

2

JIN-FINAL-

Antarctica

Spot Advertising Sales Ranks by Business Category
FY2012(Unit: %)Growth rate

Share

1

Alcoholic and other beverages

+0.3

11.5

2

Foods

–6.3

10.4

3

Pharmaceuticals

+13.7

9.6

4

Cosmetics and toiletries

+8.1

8.4

5

Automobiles and transportation equipment

–10.6

7.0

6

Telecommunications and broadcasting

+19.2

6.6

7

Entertainment and hobbies

–29.1

6.2

8

Precision instruments and office machines

+0.7

5.6

9

Distribution

+50.5

5.0

10

Financial services

+8.6

4.9

(Ranked in order of sales proceeds)

TBS Television Business Segment Income
Full yeary/y change

Remarks

Cultural business (events)¥ 2,251–946

Segment income declined, mostly in the cultural events businesses due partly to theeffects of the earthquake.

3,463

–300

Segment income declined because of the impact of the earthquake on big hits
including He is Beautiful on Theater, Romeo and Juliet, and Yakai (“Soirée”).

DVDs

3,935

+120

JIN—FINAL—, He is Beautiful and SPEC were major hits!

Animations

1,969

–817

Segment income declined, as the success of K-ON! MOVIE released in December was
not sufficient to offset a drop in reaction to the absence of the DVDs K-ON! and K-ON!!,
which were hits in the previous fiscal year.

1,421

–302

Ohoku and Space Battleship Yamato DVDs were released, and The Wings of the Kirin was
released in January and did well, but segment income declined as fewer movies werereleased compared to the previous fiscal year.

Program sales
abroad

1,014

–342

—

Other program
sales

466

+146

Increased from the previous year thanks to strong sales of programs to BS and CS.

Pay-TV business

7,609

+668

Increased from the previous year because TBS Channel, TBS NEWS BIRD, and TBS on
Demand all performed strongly.

Licensing business

1,372

–122

—

Digital business

2,082

–150

Segment income from mobile phone charges declined with the increased proliferationof smartphones.

Total¥25,586–2,047

Although there was a ¥2,000 million decline in segment income, this was more thancovered by cost controls, which resulted in improved profit margins and higher profit!

Show business
Operations Multidivisionvisualbusiness

Movie business
Contentssales
business
Content
business
division(Unit: million yen)Contents

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

19

TBS Television

IAAF World Championships Daegu 2011
©PHOTO KISHIMOTO

3

Boxing World Champion Kazuto Ioka’sFirst Defending Title Match

The 2010 FIVB Women’s Volleyball World Championship

FY2012 Viewer Ratings(Unit: %)All day

Golden time*

Prime time**TBS

6.8 (4th)

10.0 (5th)10.1 (5th)NTV

8.0 (1st)

12.7 (1st)12.7 (1st)TV Asahi

7.4 (3rd)11.7 (3rd)12.0 (3rd)TV Tokyo

2.7 (6th)

6.0 (6th)

5.6 (6th)

Fuji TV

8.0 (1st)

12.5 (2nd)12.5 (2nd)NHK

6.7 (5th)

11.5 (4th)10.2 (4th)

HUT

41.5

63.7

62.3

FY2012FY2011y/y change

Q1¥23,877¥24,226–349

Q2

23,492

23,950–458

Q323,326

24,515–1,189Q4

24,22922,413+1,816

Direct expenses

18,703—

Indirect expenses

5,526

—

Fiscal year cumulative¥94,924¥95,105(Ratings for April 4, 2011 to April 1, 2012, on a weekly basis)* 19:00~22:00** 19:00~23:00

TV Program Cost (Production Expenses)(Unit: million yen)

Next fiscal-year forecast–181
98,500(Next fiscal-year forecast includes a ¥500 million margin of error)

Major expenses included in TV program cost:Direct expenses:

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

Indirect expenses: Absorbed cost including depreciation and personnel cost for employees

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

20

Financial Data of Major Group Companies
TBS Radio & Communications, Inc.

(Unit: million yen)

FY2012
Amounty/y change¥11,144–219

Operating income

474

–116

Ordinary income

487

–91

Net income

206

–75

Net sales

Recorded the highest ratings for 64 consecutive periods from August 2001 to February 2012.

BS-TBS, INC.

(Unit: million yen)

FY2012
Amounty/y change¥11,437+2,106

Operating income

1,757

+574

Ordinary income

1,772

+578

Net income

3,193+2,003

Net sales

Grand Marche, Inc.

(Unit: million yen)

FY2012
Amounty/y change¥15,107+1,006

Operating income

491

+53

Ordinary income

625

+219

Net income

351

+108

Net sales

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

21

Financial Data of Major Group Companies
TC Entertainment Incorporated(Unit: million yen)

FY2012
Amounty/y change¥ 4,534+477

Operating income

113

+48

Ordinary income

116

+47

Net income

67

+27

Net sales

StylingLife Holdings Inc. (Consolidated) (Unit: million yen)
FY2012
Amounty/y change¥69,697–38

Operating income

1,546+1,375

Ordinary income

1,420+1,396

119+1,176

Net sales

Net income© Suzy Spafford

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

22

TBS Networks
JNN (Japan News Network)
JRN (Japan Radio Network)
TBS Television and TBS R&C harness two of the most extensive commercial broadcasting networks in Japan, in which 28 TV stations affiliated with
the Japan News Network (JNN) and 34 radio stations affiliated with theJapan Radio Network (JRN) nationwide guarantee thorough and quality
news gathering.
Our news network delivers accurate information in a split second, inalliance with overseas bureaus placed in 11 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

RCC

ITV
RNB

RKC
KUTV

RKK

TUF
RFC

SBC

UTY
YBS

MBS CBC
ABC

RSK
RNC
JRT

TBC

TBS
TBS R&C
SBS

WBS

MRT

MBC

RBC

JNN Overseas Bureaus

LondonMoscow
BerlinBeijingSeoul
TBS (Tokyo)

Shanghai

Los Angeles

Bangkok

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

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information

2012

23

New York
Washington, D.C.