TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

INVESTORINFORMATION

2014

Consolidated Financial Highlights
Net Sales

Operating Income(Millions of yen)

(Millions of yen)351,262

342,754

346,538

352,351354,338
16,18815,696

13/3

14/3

9,173

9,644

13/3

14/3

12,162
7,705
3,343
10/3

11/3

12/3

13/3

14/3

10/3

11/3

Ordinary Income

Net Income (Loss)(Millions of yen)

(Millions of yen)

17,671

12/3

11,671

18,096

14,313
9,215

103

3,902
–2,313
10/3

11/3

12/3

13/3

14/3

10/3

11/3

Total Assets

Total Net Assets(Millions of yen)

(Millions of yen)

627,683

593,023

10/3

11/3

12/3

385,971555,159

559,626

579,039

357,076

344,658

12/3

13/3

14/3

10/3

11/3

322,597

12/3

344,473

13/3

14/3

Contents
2 To Our Stakeholders

14 Major Indices

3 At a Glance

16 Segment Information

4 Organization

18 TBS Television

5 Corporate Data

21 Financial Data of Major Group Companies

6 Business Report

23 TBS Networks

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

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20141

To Our Stakeholders
The following is a brief summary of business operations during
the fiscal year ended March 31, 2014.
Despite concerns over the impact

featuring important information on the future, is just one of theof the consumption tax hike, it ishigh-quality television programs that only TBS can provide.

anticipated that the Japanese

In line with our drive to improve our content creation capacity,

economy will maintain a gentle

we are targeting efficiencies in the production process. We haverecovery apparent in underlying

already begun structural improvements to our technology

economic conditions. An increasing number of companies aredepartments and networks, upgrades to our sales andperforming well, but the Japanese economy faces a crucial

broadcasting backbone systems, and reviews from an operational

test as to whether it can overcome deflation and move toward

standpoint. Through these initiatives, we aim to enhance quality

a growth path.

programming and boost our audience ratings. In these efforts, I

In these conditions, the environment facing the broadcasting

ask our audience and advertisers for their continuing support andindustry is changing at a rapid pace. We are determined toencouragement.

maximize the power of TBS contents with regard to a number ofIn response to changes in the business environment due toissues including radio FM supplemental broadcasts, thedigitalization, the Multi-Visual Ventures and Cultural Events

emergence of 4K, 8K resolution TVs and other new technologies

Business will aim to generate multiple revenue sources. One ofand user diversification, accompanied by the popularity of mobile

these involves using The Partner: Itoshiki 100 Nen no Tomo e, aterminals and smart TVs.

drama coproduced with Vietnam Television (VTV) as an

In May 2013, the TBS Group announced the Group Medium-

opportunity to sell approximately 100 drama programs to

Term Management Plan 2015. Under this plan, the TBS Group

Vietnam, accelerating our development into overseas markets

aims to become Japan’s leading comprehensive media content

focused on Asia. We will pursue higher profitability across thegroup for the fiscal year ending March 31, 2015, which marks theentire Group by concentrating the distinction and specialization

65th year since our establishment. While recognizing news andof our individual companies to enhance the links between films,

information programming as a foundation of broadcasting, we

special events, shopping and other businesses.

envision the restructuring of TBS as a leading news medium as one

BS-TBS, INC. will continue to improve its media valuation andpillar of this plan. We aim to earn the support and trust of as many

aim for solid growth. Going forward, the Group aims to enhanceviewers as possible with multifaceted news programs that offer

its earnings foundation and maximize synergies with each

deep insights and objectivity. We will also make it an urgent

Group company.

priority to strengthen entertainment programs. The medium-term

Since August 2001, TBS Radio & Communications, Inc. has

management plan focuses on four tasks: (1) further strengthening

commanded top audience ratings in the Tokyo metropolitan area.

the broadcasting business; (2) enhancing our overall media

Although the housing business, focused on central Tokyo’s

strategy; (3) increasing revenue capacity across the Group; and (4)Shibuya district, contributes to non-broadcast revenues, theachieving a diversified expansion of revenue capacity through newenvironment facing the radio business remains difficult.

business development. By accomplishing these tasks, we aim to

Accordingly, we will control costs strictly while pursuing new

become the station with the strongest commitment to Japan’s future.

revenue sources linked to broadcasting.

In all our endeavors, we aim to continue enhancing corporate

At present, we are most concerned with “getting back to thevalue and maximizing shareholder profits.

basics” and rekindling the spirit of our establishment. The

The final episode of Tokyo Broadcasting System Television’s

founding spirit of TBS is to produce quality programs with insight

Nichiyo Gekijo: NAOKI HANZAWA earned an audience rating

into a continually changing society and to contribute to thatof 42.2%, creating a social phenomenon, and I think that thissociety by aiming to be the best rather than the biggest. To put

phenomenon will help us rediscover the media value of TV, which

this spirit into practice, we will respond rapidly to change andis known as goraku no osama (king of amusement). The IAAF

undertake the bold improvements demanded of TBS. Each of us at

World Championships Moscow 2013, held in August 2013,

TBS will go back to the basics while keeping in mind our highwere broadcast live on terrestrial television as well as a variety of

aspirations and passion, engaging in free and open debate, andother media including BS, CS and the Internet to fully showcase

working together to overcome challenging conditions.

the appeal of this world-class track and field competition. The

In our efforts to realize the commitments and goals set out

terrestrial broadcasts drew the biggest audiences in the golden

above, I ask for the continued understanding and support of ourand prime time slots for their week. The large-scale special

stakeholders.
June 2014

program series TV Mirai Isan, launched on April 1, 2013 andToshichika Ishihara, President
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20142

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 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, 2014)

Broadcasting Business

4.2%

35.7%

¥212.7 billion
60.1%

Multi -Visual Ventures and Cultural Events Business¥126.6 billion
Real Estate Business¥14.9 billion

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20143

Organization
As of January 1, 2014

Tokyo Broadcasting System Holdings, Inc.
Broadcasting Business

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

NICHION, Inc.

TBS Radio & Communications, Inc.

TBS Service, Inc.

TBS-VISION, Inc.

OXYBOT, Inc.

FF TOHO INC.

TC Entertainment Incorporated

TBS-TEX Inc.

Grand Marche, Inc.

DREAMAX TELEVISION, INC.

TBS TriMedia, Inc.

AKASAKA GRAPHICS ART, INC.

StylingLife Holdings Inc. 4 Others

Art Communication System, Inc.
TBS ProNex Inc.
Japan Artvideo Service Collaborative, Inc.

Equity-method affiliates

Vucast, Inc.
TBS MEDIA RESEARCH INSTITUTE INCORPORATED

Tomo-Digi Corporation

TBS International, Inc.

Totsu Inc.

BS-TBS, INC.

TLC Co., Ltd.

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

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20144

Corporate Data
As of April 1, 2014

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.

336

Tokyo Broadcasting System Television, Inc.

972

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, 2014)

Number of shares held
(shares)

Percentage held(%)

9,310,500

5.73

8,808,000

5.42

MITSUI & CO., LTD.

7,691,000

4.73

Mainichi Broadcasting System, Inc.

6,576,100

4.04

Sumitomo Mitsui Banking Corporation

5,745,267

3.53

Mitsui Fudosan Co., Ltd.

5,713,728

3.51

NTT DOCOMO, INC.

5,713,000

3.51

Nippon Life Insurance Company

5,631,935

3.46

BIC CAMERA INC.

4,190,000

2.58

Kodansha Ltd.

3,771,200

2.32

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 20145

Business Report
From April 1, 2013 to March 31, 2014

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

The average audience ratings for terrestrial television forDuring the fiscal year under review, the Japanese economy

the fiscal year under review stood at 6.2% across all time slots,

continued on a path to recovery as the economic policy of thewith 9.7% in the golden time slot and 9.6% in the prime time

Japanese government together with the easy monetary policy

slot. Although the average audience ratings across all time slots

adopted by the Bank of Japan resulted in higher stock prices

fell short of the results of the previous fiscal year, it slightly

and a weakening yen, which in turn increased personal

improved in the golden time slot and was on a par with theconsumption and housing investment. In the fall, the decision toprevious fiscal year in the prime time slot.

hold the 2020 Olympics in Tokyo helped improve consumer

In the variety show category, three Friday night programs,

sentiment, and later in the fiscal year a last-minute surge in

Bakuhou! THE Friday, Pittanko Kan Kan, and Masahiro Nakai’s

demand occurred before the rise in consumption tax in April

SMAP Friday, continued to deliver high ratings. Saturday night

2014. In the broadcasting industry, the spot advertising market

programs Athletic Fire and Job Tune often marked double-digit

turned strong and TV advertising expenditures continued toaudience ratings when broadcasted as a special two-hourgrow as the economy and corporate earnings continued toprogram, indicating that our programming policy aimed atrecover.

promoting them as popular weekend entertainment for the family

In this operating environment, while the TBS Grouphas been successful. The long-runner Sekai Fushigi Hakken(hereinafter referred to as “the Group”) sought to further(Discover of the World´s Mystery) also achieved a better

strengthen its core terrestrial television programs, the Groupaverage audience rating than the previous fiscal year. As for

conducted aggressive and painstaking sales activities to respondspecial programs, we broadcasted the annual Ongaku No Hi

to the needs of the sponsors.

(Music Day) as a long-hour program and earned a double-digit

As a result of these developments, consolidated net sales ofaudience rating in both golden and prime time slots. In the

the Group in the fiscal year ended March 31, 2014 increased

drama category, Nichiyo Gekijo NAOKI HANZAWA was so

by 0.6% from the previous fiscal year to ¥354,338 million, andpopular that it became a social phenomenon and the word

ordinary income increased by 2.4% to ¥18,096 million. Net

baigaeshi (take double the payback) won the buzzwords-of-the-income increased by 5.1% from the previous fiscal year toyear award. It delivered an average audience rating of 28.7%¥9,644 million.

with an astounding 42.2% for the final episode and an
instantaneous highest audience rating of 46.7%, and became

Broadcasting Businessone of the biggest hit programs in the history of TV

Consolidated net sales from the Broadcasting Business increased

broadcasting. As the 42.2% audience rating for the final

by 0.5% from the previous fiscal year to ¥212,764 million,

episode is the highest record among commercial-channel

while operating income decreased by 0.2% to ¥3,859 million.

dramas since 1989, we were able to once again demonstrate
our excellence in the drama category. Other dramas, including

Television

Nichiyo Gekijo Public Affairs Office in the Sky, Ando Roid, S

Terrestrial television time sales fell short of the results of the

The Last Policeman, Friday TV dramas TAKE FIVE: Should We

previous fiscal year in which we broadcasted major sports

Steal for Love?, Naruyouni Narusa (EVERYTHING IN ITS TIME),

programs, such as the London Olympics, the football

were also popular. We also broadcasted as a special program,championship UEFA EURO2012 and World Baseball Classic,

a special drama The Partner, which was produced jointly with

one after another, though regular programming sales were flat

Vietnam Television to commemorate the 40th anniversary sinceat the levels of the previous fiscal year and special programming

the establishment of diplomatic relations between Japan andsales of the IAAF World Championships Moscow 2013, theVietnam. The story describing the bonds between Japan andSochi 2014 Winter Olympics and the long-hour TV drama

Vietnam in the Meiji era based on historical facts received highLEADERS broadcasted in two consecutive nights in Marchpraise including the Golden Lotus for Best Direct-to-Video Film at

contributed to sales.

the Vietnam Film Festival, contributing to the friendship between
the two countries. The long-hour drama LEADERS, which

Spot sales outperformed the results of the previous fiscal year
despite weak sales in April through May as the spot advertising

portrayed the heroism of people who devoted their lives to thevolume in the Tokyo area remained strong in June and thereafter.

commercialization of automobiles made in Japan around theTOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20146

Business Report
From April 1, 2013 to March 31, 2014

The BS digital broadcasting market is steadily growing as its

time of WWII, was broadcasted on two consecutive nights for a
total length of five hours with an audience rating of 13.7% andwatching habits have been firmly established among the

15.4% each night.

audience. Meanwhile, there have been changes in theenvironment surrounding the market, such as stagnant growth inIn the sports category, the men’s marathon in the IAAF WorldChampionships Moscow 2013 achieved an audience rating ofpenetration rates and intensified competition with the new

23.1%, attracting much attention. Other popular programs

participation of channels. BS-TBS, INC. promoted more strategic

included the Kirin Challenge Cup—Japan vs. Uruguay (soccer)

programming and worked to provide high-quality programs, forwith an audience rating of 17.1% and the Volleyball World

example, by enhancing the contents of programs producedChampionships Asia Final Round with all women’s matchesinternally. As a result, net sales increased for the fiscal year

broadcasted in the golden and prime time slots securing double-

under review, but operating income decreased partly due todigit audience ratings. Professional baseball Japan Series 6th

depreciation of the master control room, which started operationGame —Rakuten Eagles vs. Yomiuri Giants achieved an

in July 2013. We will continue to aim at building a framework

audience rating of 28.4% as pitcher Masahiro Tanaka of

to support earnings growth without depending on the growth of

Rakuten, which had come to within one game of winning thethe BS market by producing high-quality programs withseries, drew much attention. We broadcasted the Sochi 2014

aggressive and efficient investment of program development

Winter Olympics in six live broadcast slots and one highlightcosts to improve the channel brand recognition.

slot. As our programming strategy focusing on snowboarding

Note: All audience ratings are household audience ratings inproved highly effective, the men’s slopestyle finals and men’s

the Kanto region, surveyed by Video Research Ltd.

halfpipe delivered audience ratings of 19.8% and 18.0%,
respectively, which were the first and second places among suchRadiolive broadcasts by all broadcasting stations.

Time sales decreased from the previous fiscal year as theyIn the news category, N Suta and NEWS23X, among others,remained weak throughout the fiscal year under review

reported high-quality news on a daily basis. At the end of 2013,

although we secured some new sponsors in automobile-related

we broadcasted Day of News 2013, which became an annual

and food-related sectors. On the other hand, there were someregular program, as a long-hour program to look back on thebright spots including the acquisition of new sponsors who had

first 25 years in the Heisei era. In the category of across-the-never sponsored radio programs in the past.

board information programs, HIRUOBI! achieved an outstanding

As for spot sales, live commercials given by radiofeat of marking the highest average audience ratings for three

personalities continued to be strong. Spot sales for the second

consecutive years in the relevant time slot.

half of the fiscal year significantly outperformed the results of the

We started the long-hour special series TV Mirai Isan (TVsame period in the previous fiscal year partly because time

Future Heritage) in April 2013 to pursue the theme of importantsignal spot advertising, which had struggled in the first half ofmessages to be relayed to future generations. The series dealt

the fiscal year, rallied in the second half. However, on a full-with various topics on a grand scale in a variety of fields such as

year basis, spot sales fell slightly short of the results of thenews reporting, sports and science. In particular, Kounotori no

previous fiscal year.

Yurikago (Cradle of a Stork), which dramatized the “babyIn terms of programming, Tamamusubi, a long program on

hatch” issue, received a huge response from the audience andweekday afternoons that started in April 2012, was ranked as

won the excellence award at the Agency for Cultural Affairs Art

top in the audience rating surveys conducted in February 2014,

Festival 2013. On March 10, 2014, the third anniversary of themaintaining its position for five consecutive periods after it

Great East Japan Earthquake, we broadcasted the program

secured the No. 1 position for the first time in June 2013. The

Right after Earthquake: What to Do within 72 Hours That Can

long news program Chiki Ogiue Session-22, which started in

Mean the Difference between Life and Death to examine

April 2013, also achieved the highest audience rating in the

responses to major earthquakes expected in the future. Other

survey conducted in December 2013 and is establishing its

popular programs 3.8 Billion Years of Life: Latest Gene Mystery-

popularity. Under these circumstances, ranking as top in the

What Is a Human Being? and Urgent! Think about Huge

audience rating surveys in the Tokyo metropolitan area, TBS

Earthquakes with Akira Ikegami: How to Protect Yourself during

Radio has maintained its position as a leading radio company

an Earthquake II achieved double-digit audience ratings.

in the area for 76 consecutive periods (12 years and 8 months)

As of March 31, 2014, 28 companies throughout Japan

since fiscal 2001 (ended August). The firmly establishedwere affiliated with the Group’s JNN television network. The

popularity of the radio media was once again demonstrated bynumber was unchanged from the previous fiscal year.

2013 Summer Sacas: Smiling Door Deliciacas in the summer
2013 and 2014 Spring Sacas: Mamasacas in March 2014,

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20147

Business Report
From April 1, 2013 to March 31, 2014

which attracted a large audience to live radio broadcasts andparticularly to a marble relief Madonna of the Stairs, which was

events.

exhibited for the first time in Japan, and the Sistine 4K Theater,which visualized the interior of the Sistine Chapel using an ultra

In the broadcast related business, Elekata Conte Live (acomedy sketch) featuring Elec Comic and Jin Katagiri of a conte

high-resolution 4K camera for the first time among Japaneseunit the RAHMENS and the theater performance by Kentarobroadcasting stations. Monet, An Eye for Landscapes: Innovation

Kobayashi of the RAHMENS were popular among fans. In

in 19th Century French Landscape Paintings, also held at

March 2014, we offered live events and CD production

National Museum of Western Art attracted more than 310,000

featuring Puck in Music, a legendary program which

visitors in total.

underpinned the boom for late-night radio programs during the

At 2013 Summer Sacas: Smiling Door Deliciacas, which was

1965-1974 period, and they achieved popularity particularly

held at Akasaka Sacas for 51 days, we set up gourmet/cooking

among old fans. In April 2013, we opened TBS Housingbooths related to the program with the cooperation of famous

Shibuya, the only model home park within the Yamanote railway

restaurants attracting more than 1.33 million visitors, which wasline, and received favorable responses. As a result of thesea significant increase from the event held in summer 2012.
In the video business, we released SPEC-Close, a final

efforts, the broadcast-related business achieved both sales andepisode of a popular TV drama series, and generated box-officeprofit growth.

revenues of over ¥4.8 billion in total for Part I and Part II. A

As of March 31, 2014, 34 companies throughout Japan
were affiliated with the TBS radio network JRN. This number wasmovie edition of another popular TV drama Ataru: The First Love

unchanged from the previous fiscal year.

& The Last Kill, as well as movie editions of Library Wars, Real,
Oshin and Dakishimetai also aroused much interest.

Multi-Visual Ventures and Cultural
Eventsachieved high audience ratings, became an unprecedented big

Net sales from the Multi-Visual Ventures and Cultural Events

hit in both sale and rental divisions. The DVD editions of ATARU

Business increased by 1.1% from the previous fiscal year toSpecial and SPEC-Zero also delivered strong sales performance¥126,637 million, while operating income increased by 1.6%

owing to the synergy effect with the movie editions. Dramas suchto ¥5,531 million.

as Public Affairs Office in the Sky, Pintokona and Tonbi (BlackIn the DVD/Blu-ray Disc business, NAOKI HANZAWA, which

Kite) also have great support from fans. In the animation

In the cultural events business, TBS invested in and cosponsored a performance with Takarazuka Revue for the firstbusiness, the second volume of a popular series Infinite Stratos 2time to give Sengoku BASARA, a popular musical romance thatsold well as expected.

was performed by Takarazuka Revue Flower Troupe at Tokyu

In the business targeting overseas, sales of TV program

Theatre Orb. A Broadway musical Dreamgirls and the musicalformats, which offer TV program concepts, continue to grow

Romeo & Juliet, which had also played at Tokyu Theatre Orb,

steadily. For example, SASUKE, which had been sold to more

completed their schedule with success. Popular programs atthan 150 countries and regions, continues to be so popular that

Akasaka ACT Theater included Tamasaburo Bando’s Amaterasu

fully localized versions of the program have been produced inand Sanada Juyushi (Sanada Ten Braves) starring Takaya

the U.S., Malaysia and Singapore. Business expansion in the

Kamikawa, while a musical Love Never Dies at the Nissay

Asian market accelerated as we sold about 100 TBS dramas to

Theatre was sold out. The K-Ballet Company led by Tetsuya

Vietnam, the home country of Vietnam Television with which we

Kumakawa, who received a Medal with Purple Ribbon last year,

produced a special drama, The Partner. Also NAOKI

met fans’ expectations by offering a wide variety of works

HANZAWA, which has been a big hit, is attracting muchincluding Symphony No. 9 by Ludwig van Beethoven, Giselle,

attention not only from the Asian region, but also from the TV

Swan Lake, and La Bayadère.

industries in the U.S. and Europe.
In the communication satellite business, TBS On Demand

In the exhibition business, LEONARD DA VINCI Biblioteca
Pinacoteca Ambrosiana, held at the Tokyo Metropolitan Art(video distribution service) increased sales significantly mostlyMuseum was a success as the Portrait of a Musician, which wasowing to the distribution of the drama series SPEC at the same

exhibited for the first time in Japan, drew much attention. The

time as the release of SPEC-Close, a movie edition of the drama

American Pop Art exhibition held at the National Art Center,

series. As for the communication satellite program, “TBS Channel

Tokyo included Andy Warhol’s most important work 200

2,” which opened in October 2012, is increasing the number ofCampbell’s Soup Cans, which aroused considerable interest

subscribers particularly through SKY PerfecTV! as part of ourMichelangelo Buonarroti – The Making of a Genius and theefforts to boost the number of subscribers with our three-channel

500th Anniversary of the Sistine Chapel, held at the National

broadcasting system consisting of “TBS Channel 1,” “TBS News

Museum of Western Art, received favorable responses

Bird” and “TBS Channel 2.”

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20148

Business Report
From April 1, 2013 to March 31, 2014

In the license business, on the back of the high audience

the Akasaka Broadcasting Center, the main facility for variety

rating of the drama NAOKI HANZAWA, customers seeking toshow programs and live programs, we implemented energy

buy Baigaeshi Manju (“double the payback” steamed buns)conservation measures including the change of the lighting in

waited in a queue every day in front of the TBS Store and theStudio P to LED lighting.
As for the operations related to program recording, editingbuns sold out for 137 consecutive days due to theirunprecedented popularity. “Million Spoon,” a collaboration

and broadcasting conducted internally, we promoted a transition

product between Athletic Fire and TOMY Company, Ltd.,to a file-based system that uses memory cards, personal

received favorable responses and won the excellence award incomputers and servers in place of video tapes. In the fiscal year

the boy’s toy category of the Japan Toy Awards.

under review, we started the operation of the sports news
system, improving significantly the work efficiency in the

In the digital business, we entered into the golden time slotsof terrestrial television for the first time and Real Escape Game

broadcasting of the Sochi 2014 Winter Olympics and otherTV, a program linked to digital contents that was broadcasted

sports events. In addition, cameras used for news reporting were

through the national TV network, achieved strong results as aswitched to the memory card system. We plan to further reduce

digital audience participation program with 1.72 million total

video tape costs and improve work flow efficiency by promoting

game participants and 6.5 million total accesses to the website,

the transition to the file based system particularly for theraising expectations for new developments in second screen

production of news and information programs.
In the radio business, we also upgraded the facilities ofservices. The digital signage service Campus TV, which we
provide in cooperation with university co-operative associations

Studio No. 6, striving for highly reliable and stable informationand others, is steadily growing with the expansion of the service

distribution.

to 63 universities (110 digital signage boards) across Japan.

Real Estate Business

3 Capital Procurement

Net sales from the Real Estate Business decreased by 2.6% fromIn the fiscal year under review, the Group completed thethe previous fiscal year to ¥14,935 million, and operating

following financing.

income decreased by 8.5% to ¥6,303 million.

The Company completed the disposal of treasury stockAkasaka Sacas, which has reached the seventh anniversary

totaling approximately ¥11.9 billion (treasury stock ofof its opening, has established itself as a popular cultural and

9,772,200 shares with the disposal price per share of ¥1,219)

entertainment center. Revenue from the office floors of Akasaka

by way of third-party allotment to NTT DOCOMO, INC.,

Biz Tower declined partly due to the relocation of certain tenants

MITSUI & CO., LTD., Mainichi Broadcasting System, Inc. andupon the expiration of lease contracts, but revenue from its

WOWOW INC. with the payment due date ofcommercial complex was strong owning to our concerted efforts

September 13, 2013.

leveraging various performances and events held at the

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

Sacas Square.

year under review was ¥76.2 billion (excluding leaseobligations), consisting of ¥200 million in short-term loans
payable, ¥50.0 billion in bonds payable (including current

2 Capital Investment

portion of bonds) and ¥26.0 billion in long-term loans payable(including the current portion).

Total capital investment in the fiscal year under review was

In order to ensure flexible access to operating capital, as of¥9,775 million.

the end of the fiscal year under review, StylingLife Holdings Inc.,

For terrestrial digital broadcasting in the Kanto area, werelocated the key station from the Tokyo Tower to Tokyo Skytree

a consolidated subsidiary of the Company, had establishedovernight at the end of May 2013. We also continued work tocommitment line agreements totaling ¥4.5 billion with multiple

upgrade facilities in cooperation with other commercial TV

financial institutions (the balance of the funds drawn is nil, andbroadcasting companies and NHK. Such work included thethe available balance is ¥4.5 billion).

accommodation of new technologies for broadcasting in the

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

areas where access to terrestrial digital broadcasting is limited

some of the account receivables are in the process of liquidation.

and frequency resetting (repacking) after the termination of
analog broadcasting.
As for TV program production facilities, we upgradedcameras and the visual/audio system of M3 Studio ofMidoriyama Studios (the main facility for drama production). At
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 20149

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

As of March 31, 2014 and 2013

2013

2014

¥ 68,243¥ 55,331

37,56838,297—

1,205

Merchandise and finished goods

7,174

6,951

Program rights and work in process

8,149

7,654

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

581

686

Prepaid expenses

6,477

10,731

Deferred tax assets

5,044

4,018

Other

6,030

5,529

Raw materials and supplies

Allowance for doubtful accounts
Total current assets

(139)

(143)

139,130130,262

Noncurrent assets
Property, plant and equipment

192,312

195,975

Accumulated depreciation(85,098)(90,875)

Buildings and structures, net

107,213105,100

Buildings and structures

Machinery, equipment and vehicles
Accumulated depreciation

83,51889,235(74,992)(78,999)

8,526

10,235

24,116

26,848(21,965)(23,853)

2,150

2,995

Land

84,55484,006

Lease assets

6,625

6,959

Accumulated depreciation(3,787)(4,051)

Lease assets, net

2,837

2,908

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

6,748

2,382

212,030

207,628

Software

4,768

4,704

Goodwill

22,36023,196347

238

Construction in progress
Total property, plant and equipment
Intangible assets

Lease assets
Other

1,702

1,669

Total intangible assets

29,17829,809164,463

195,713

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

283

288

1,706

1,980

949

713

12,61313,029Allowance for doubtful accounts

(728)

(386)

Total investments and other assets

179,286

211,339

Total noncurrent assets
Total assets
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 201410

420,496448,777¥ 559,626¥ 579,039

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

As of March 31, 2014 and 2013

2013

2014

¥ 34,814¥ 34,327—

200

31,2001,200

Current portion of bonds—

20,000Accounts payable—other

11,431

9,925

Income taxes payable

3,982

4,485

684

686

5,761

5,526

191

195

Provision for measures associated with the relocation of transmitting station

1,080

—

Other provision

1,134

1,434

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

Accrued consumption taxes
Accrued expenses
Provision for directors’ bonuses

Other

5,809

5,135

Total current liabilities

96,09083,117

Bonds payable

50,00030,000Long-term loans payable

26,00024,800

Provision for retirement benefits

13,431——

176

Noncurrent liabilities

Provision for environmental measures
Net defined benefit liability—

14,460

Lease obligations

1,590

1,320

Deferred tax liabilities

12,681

24,778Other

15,35814,415

Total noncurrent liabilities

119,062

109,951

215,152

193,068

Capital stock

54,98654,986

Capital surplus

60,25459,512Retained earnings

228,882

235,548

Treasury stock(48,973)(36,970)

Total shareholders’ equity

295,150

313,076

33,46852,860

Deferred gains or losses on hedges

(46)

306

Foreign currency translation adjustment

(106)

(31)

Remeasurements of defined benefit plans—

146

Total valuation and translation adjustments

33,31453,282

Total liabilities
Net assets
Shareholders’ equity

Valuation and translation adjustments
Valuation difference on available-for-sale securities

Minority interests

16,008

19,611

Total net assets

344,473

385,971¥ 559,626¥ 579,039

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

Investor Information 201411

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

Years ended March 31, 2014 and 2013

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

2013

2014

¥ 352,351¥ 354,338

245,187

245,498

107,164

108,839

90,975

93,142

16,18815,696

78

63

Non-operating income
Interest income

2,605

2,736

Equity in earnings of affiliates

43

864

Other

811

689

3,538

4,352

1,308

1,103

Loss on reduction of noncurrent assets

138

251

Loss on retirement of noncurrent assets

110

237

Dividends income

Total non-operating income
Non-operating expenses
Interest expenses

Other
Total non-operating expenses
Ordinary income

499

360

2,055

1,953

17,671

18,096Extraordinary income

126

3,096

Gain on sales of investment securities

1

1,065

Gain on revision of retirement benefit plan—

562

Gain on sales of noncurrent assets—

60

Gain on sales of subsidiaries and affiliates’ stocks—

14

Gain on bargain purchase

Gain on step acquisitions—

8

Total extraordinary income

127

4,808

716

2,051

Extraordinary loss
Loss on valuation of investment securities

Loss on step acquisitions

—

1,549

1,377

908

711

441

—

216

Environmental expenses—

176

Loss on revision of retirement benefit plan

67

154

Office transfer expenses

518—

Total extraordinary losses

3,392

5,498

Income before income taxes and minority interests

14,407

17,407

Income taxes—current

5,363

6,202

Income taxes—deferred(1,979)69

Total income taxes

3,383

6,271

Income before minority interests

11,023

11,136

Minority interests in income

1,850

1,491

¥ 9,173¥ 9,644

Loss on measures associated with the relocation of transmitting station
Impairment loss
Early extra retirement payments

Net income
TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 201412

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

Year ended March 31, 2014 and 2013

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
Retirement benefit expenses
Increase (decrease) in net defined benefit liability
Loss on retirement of noncurrent assets
Gain on bargain purchase
Loss (gain) on step acquisitions
Increase (decrease) in provision for measures associated with the relocation of transmitting station

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 investments in subsidiaries resulting in change in scope of consolidation

Other, net
Net cash used in investing activities
Cash flows from financing activities
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from disposal 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 (decrease) in cash and cash equivalents
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of periodTOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 2014
13

2013

2014

¥ 14,407
14,147
252
1,605
716
(1)
340
—
110
(126)
—
1,080
(92)
(2,684)
1,308
(43)
(785)
(2,409)
2,002
116
595
30,542
2,688(1,281)569(4,362)28,156¥ 17,407
15,109
270
1,668
2,051
(1,065)—471
237(3,096)
1,540(1,080)(347)(2,799)
1,103
(864)
(403)
688
(4,029)(436)
261
26,6862,800(1,101)355(5,701)
23,038(10,662)(1,808)
(703)
1
—
—
(476)
(13,649)(9,920)(2,032)(1,295)
4,110(6,187)
3,606
392(11,326)(20,000)
10,800(12,350)—(2,591)(53)(1,279)(25,475)
106(10,861)91
78,801¥ 68,031——(31,200)
11,883(2,977)(285)(989)(23,567)
136(11,719)—
68,031¥ 56,312

Major Indices

Net Income (Loss) per Share

Return on Equity

(Yen)

(%)

74.71
60.27

3.6

61.22

2.9

2.8

13/3

14/3

0.54
0.0
–12.18
10/3

–0.7
11/3

12/3

13/3

14/3

10/3

11/3

12/3

Ratio of Ordinary Income to Net Assets

Ratio of Operating Income to Net Sales

(%)

(%)

3.2

3.2

2.5

4.4

13/3

14/3

3.5

2.2

1.5
0.7

10/3

4.6

1.0

11/3

12/3

13/3

14/3

10/3

11/3

12/3

Equity Ratio

Net Assets per Share

(%)

(Yen)

2,025.89

63.3
55.2

56.4

55.5

10/3

11/3

12/3

58.7

13/3

14/3

1,822.22

1,759.70

10/3

11/3

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 2014
14

12/3

2,158.00

13/3

2,263.65

14/3

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)(Shares)(Shares)

38,225,599 38,226,794

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

10/3

11/3

12/3

13/3

28,590,009

14/3

418,165

453,652

10/3

11/3

12/3

13/3

14/3

Cash Flows from Operating Activities

Cash Flows from Investing Activities(Millions of yen)

(Millions of yen)

6,278
30,03630,07228,15623,03818,646–5,731–11,326–13,649–13,754
10/3

11/3

12/3

13/3

14/3

10/3

11/3

12/3

13/3

14/3

Cash Flows from Financing Activities

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

(Millions of yen)

78,801
71,434

68,031–1,37956,312

52,249–17,037–16,993–25,475
10/3

11/3

12/3

13/3

–23,567
14/3

10/3

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 2014
15

11/3

12/3

13/3

14/3

Segment Information
Consolidated Results by Segment(Millions of yen)

FY2014External
sales

y/y change

Operatingincomey/y change

Broadcasting Business¥212,764+984¥ 3,859–6

Multi-Visual Ventures and Cultural Events Business

126,637+1,407

5,531+89

Real Estate Business

14,935

-405

6,303

–586

Consolidated Business¥354,338+1,986¥15,696–491

Capital Expenditures and Depreciation(Millions of yen)

Consolidated

FY2014

Capital expenditures¥ 9,775

Depreciation

13,855TBS Holdings

FY2014

Capital expenditures¥

428

Depreciation

3,213

TBS Television

FY2014

Capital expenditures¥ 6,508

Depreciation

7,910

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 201416

Segment Information
FY2014 Consolidated and TBS Television Business Results Forecasts(Millions of yen)

2015

Consolidated

FY2015Net sales¥357,000

Operating income

17,400Ordinary income

19,700Net income

10,700Business Results Forecast by Segment(Millions of yen)

Consolidated

FY2015

Consolidated net sales¥357,000Broadcasting Business

217,300

Multi-Visual Ventures and Cultural Events Business

124,500

Real Estate Business

15,200Consolidated operating income

17,400Broadcasting Business

4,700

Multi-Visual Ventures and Cultural Events Business

5,800

Real Estate Business

6,800(Millions of yen)

2015

TBS Television

FY2015Net sales¥216,800

Operating income

7,400

Ordinary income

8,900

Net income

5,800

Time/Spot, Program Cost Forecasts
1st half

2nd half

Full year

Time

+0.2%

+0.1%

+0.2%

Spot

+1.2%

+5.7%

+3.5%

—

—

¥98,500 million

Program cost

Note: The estimated figures above, which were announced on May 13, 2014, 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 201417

TBS Television

HIRUOBI!

1

SUNDAY MORNING

Pittanko Kankan

Breakdown of TBS Television Income(Millions of yen)

FY2014

Televisiony/y change¥184,154–92

Time advertising

86,568-2,027

Spot advertising

85,484+1,828Program sales in Japan

3,835

+143

Others8,266–38Operations

28,655+2,618

Real estate

2,933

+45

¥215,743+2,571

Total income

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

130

Time
Spot

111.8

110

111.3
103.9

103.3

94.0

100.2
95.2

93.6

102.2
95.8

103.2

94.8

105.8

106.5

103.8

107.0

97.5
90

104.1

98.0

100.7

101.8

Feb.

Mar.

93.3

90.4
85.8

70
2013

Apr.

2014

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Q1

Q2

Q3

Q4

Full year● Time

92.7

100.1

96.2

101.9

97.7

● Spot

101.0

104.5

101.1

102.7

102.2

19.8

19.3

19.7

18.8

19.4

TBS share among five key broadcasters

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 201418

TBS Television

S The Last Policeman

NAOKI HANZAWA

2

Naruyouni Narusa

Spot Advertising Sales Ranks by Business Category
FY2014(%)

Growth rate

Share

+17.6

11.5

1

Alcoholic and other beverages

2

Foods

–5.3

9.8

3

Information, telecommunications, and broadcasting

+1.4

9.2

4

Automobiles and transportation equipment

+2.3

8.8

5

Pharmaceuticals

–2.7

8.4

6

Financial services

+34.4

7.3

7

Cosmetics and toiletry

–15.7

6.7

8

Precision instruments and office machines

–1.6

5.4

9

Distribution

+8.6

5.0

10

Transportation and leisure

–2.9

4.3

(Ranked in order of sales proceeds)

TBS Television Business Segment Income(Millions of yen)Segment

Full yeary/y change

Remarks

Cultural business (events)¥ 3,469+170

Revenue increased thanks to buoyant sales of the Claude Monet Exhibit as well as the
Da Vinci Exhibit and Michelangelo Buonarroti Exhibit. The ballet performance of the
Tetsuya Kumakawa K-Ballet Company continued to post brisk sales.

OperationsShow businessdivision

4,047

+927

Revenue increased with an increased number of events compared to the preceding
fiscal year. Buoyant sales were recorded for 9 Days Queen, AMATERASU, Romeo &Juliette, DREAM GIRLS, etc.

Movie business

2,017

+335

Revenue increased with the smash hit of SPEC-Close ~ incarnation ~ / SPEC-Close ~reincarnation ~, as well as the good performance of ATARU and Dakishimetai.

DVDs

3,712

+880

Despite a slump in the DVD market, revenue rose substantially given the smash hit of
NAOKI HANZAWA and buoyant sales of Public Affairs Office in the Sky, SPEC Zero,etc.

Animations

1,223

-781

Revenue declined in the absence of the movie K-On! which recorded brisk sales in theprevious fiscal year.

Overseas business

1,286

+118

Revenue increased with robust overseas sales of NAOKI HANZAWA, etc., in addition
to new overseas business expansion in Vietnam and other countries.

Pay-TV business

9,787 +1,193

Licensing business

1,203

+8

Digital business

1,908

-235

Multivisualbusiness

Content
business
division

Total

Revenue jumped given the significant ongoing strength of TBS on Demand.
TBS Channel 2, which recorded a stable increase in subscriber numbers, and other CS
business remained robust.
Sales of the TBS store increased thanks to the smash hit of Baigaeshi Manjyu and SPEC
goods. However, this was not sufficient to offset a reactionary decline from a gain insales related to the movie K-On! in the previous year, resulting in a slight increase inrevenue.
Revenue declined due to an ongoing decrease in mobile phone charges.

¥28,655 +2,618

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 2014
19

TBS Television

3

IAAF World Championships Moscow 2013

IAAF Championship Moscow 2013

©PHOTO KISHIMOTO©PHOTO KISHIMOTO

FY2014 Viewer Ratings(%)

All day

Golden time*

Prime time**TBS

6.2 (5th)

9.7 (5th)

9.6 (4th)NTV

8.1 (1st)

12.1 (1st)

12.0 (2nd)

TV Asahi

7.7 (2nd)11.8 (2nd)12.1 (1st)TV Tokyo

3.0 (6th)

7.2 (6th)

6.8 (6th)

Fuji TV

7.0 (3rd)

10.5 (4th)10.8 (3rd)NHK

6.6 (4th)

10.7 (3rd)

9.5 (5th)

HUT

41.7

64.2

62.6

Ratings for April 2, 2013 to March 30, 2014, 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 Cost (Production Expenses)(Millions of yen)

FY2014FY2013y/y change

Q1¥23,810¥26,193–2,383

Q2

25,77925,700+78

Q323,49023,548–58

Q424,56923,412+1,157

Direct expenses–19,183–18,223+960

Indirect expenses–5,386–5,189+197

Fiscal year cumulative¥97,648¥98,853–1,205

Next fiscal-year forecast

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 201420

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

(Millions of yen)

FY2014
AmountNet salesy/y change¥10,786–15

Operating income

430

+77

Ordinary income

433

+73

Net income

225

+1

Recorded the highest ratings for 78 consecutive periods from August 2001 to June 2014.

BS-TBS, INC.

(Millions of yen)

FY2014
AmountNet salesy/y change¥14,716+1,070Operating income

2,202

–217

Ordinary income

2,223

–217

Net income

1,771–1,136Grand Marche, Inc.

(Millions of yen)

FY2014
AmountNet salesy/y change¥16,078+763

Operating income

307

–160

Ordinary income

277

–300

Net income

142

–228

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 201421

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

FY2014
AmountNet salesy/y change¥68,637–1,121

Operating income

1,827

69

Ordinary income

1,770

221

Net income

1,121

936

BARBAPAPA© 2014A.T. & T.T.

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 201422

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 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, 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

ITV
RNB

OBS

NBC

RKK
MBC

RCC
RKC
KUTV

MBS
ABC

RSK
RNC
JRT

TUF
RFC

SBC

UTY
YBS

CBC

TBC

TBS
TBS R&C
SBS

WBS

MRT

RBC

JNN Overseas Bureaus

LondonMoscow
BerlinBeijing
Middle East

Seoul
Tokyo (TBS)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/ir/en/

TOKYO BROADCASTING SYSTEM HOLDINGS, INC.

Investor Information 2014
23

New York
Washington, D.C.