Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2017
(Based on Japanese GAAP)May 15, 2017
Company name:

WOWOW INC.

Stock exchange listing: Tokyo
Stock code:
4839

URL

http://www.wowow.co.jp

Representative:

President
Akira Tanaka
General Manager Investor Relations, Finance
Inquiries:
Junichi Onoue& Accounting Division
Scheduled date of ordinary general meeting of shareholders:June 23, 2017
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 26, 2017
June 5, 2017

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

03-4330-8097(for institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
Net salesYear ended March 31, 2017
Year ended March 31, 2016

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
10,141
11.7
10,282
8.1
6,800
1.4
9,080
(6.9)
9,516
(8.2)
6,707
1.3

Millions of yen
78,25375,296%
3.9
3.7

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
14.4
14.2
13.0
–
15.8
15.1
12.1

Yen
251.94248.52

Year ended March 31, 2017
Year ended March 31, 2016
(2) Consolidated financial position

Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
81,461
63,452Millions of yen
49,73144,646

Cash flows fromoperating activities
Millions of yen
12,202
5,331

Cash flows frominvesting activities
Millions of yen(2,543)(2,669)Net assets per share%
61.0
70.4

Yen
1,842.49
1,654.10(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,020)24,157(1,696)
16,526

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

70.00
80.00

70.00
80.00

1,889
2,159

28.2
31.8

4.4
4.6–0.00–80.00

80.00

133.2

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Six months ending
September 30, 2017
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

40,600

3.5

5,100

(1.4)

5,300

(4.2)

3,700(3.3)

137.0882,5005.4

9,000(11.3)

9,400(8.6)

6,500

(4.4)

240.82

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2017

28,844,400 shares As of March 31, 2016

28,844,400 shares

Number of treasury shares at the end of the period
As of March 31, 2017

1,853,163 shares As of March 31, 2016

1,853,130 shares

26,991,265 shares Year ended March 31, 2016

26,991,282 shares

Average number of shares during the period
Year ended March 31, 20172

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

18,215
4,426

25,503
4,877

Merchandise and finished goods
Broadcasting licenses

78
14,320141
24,116

Supplies
Prepaid expenses

60
693

54624

Deferred tax assets
Other

1,112
531

1,142
1,408

Allowance for doubtful accounts

(123)

(121)

39,31557,747

6,201

5,712

Accumulated depreciation(3,729)(3,669)Buildings and structures, net

2,472

2,042

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery and equipment

11,65911,917

Accumulated depreciation(7,181)(8,409)Machinery and equipment, net

4,478

3,507

3,271

3,298

Accumulated depreciation(2,108)(2,365)Tools, furniture and fixtures, net

1,163

932

51

5Tools, furniture and fixtures

Other, net

8,164

6,488

Intangible assets
Leasehold right

Total property, plant and equipment

5,011

5,011

Software
Other

2,167
50

2,150
50

Total intangible assets

7,229

7,212

Investments and other assets
Investment securities

7,371

8,627

Lease and guarantee deposits
Deferred tax assets

786
539

829
393

Other
Allowance for doubtful accounts

67(22)

185(22)

Total investments and other assets
Total non-current assets
Total assets

3

8,742

10,01324,13723,71463,452

81,461

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Accounts payable - trade

10,521

23,298

Accounts payable - otherAccrued expenses

1,579
2,988

702
3,548

Income taxes payable
Provision for bonuses

1,485
67

1,508
66

390

823

17,032

29,947

1,620
153

1,656
125

Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
Other
Total non-current liabilities

1,773

1,782

18,806

31,730Shareholders' equity
Capital stock

5,000

5,000

Capital surplus
Retained earnings

2,738
39,6292,738
44,540Total liabilities
Net assets

Treasury shares(3,081)(3,081)

Total shareholders' equity

44,28749,197

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

508
(149)

611
(78)

Total accumulated other comprehensive income

359

533

44,64649,731

63,452

81,461

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2016
Net sales

Fiscal year ended
March 31, 201775,29678,253

Cost of sales

40,81142,491Gross profit

34,48435,762

Selling, general and administrative expenses

25,40425,620Operating profit

9,080

10,141

1714

Foreign exchange gains
Share of profit of entities accounted for using equity method

108
234–341

Other83

83

Total non-operating income443439–
7297
0

Non-operating income
Interest income

Non-operating expenses
Foreign exchange losses
Other
Total non-operating expenses

7298

9,516

10,282Gain on sales of non-current assets–0

Total extraordinary income–0

Loss on retirement of non-current assets
Loss on sales of non-current assets

33
1521
–

Loss on valuation of investment securities
Loss on valuation of golf club membership

480–

Total extraordinary losses

47521

Profit before income taxes

9,469

9,761

Income taxes - current
Income taxes - deferred

3,184(423)

2,923
37

Total income taxes

2,761

2,961

Profit

6,707

6,800

Profit attributable to owners of parent

6,707

6,800

Ordinary profit
Extraordinary income

Extraordinary losses

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
6,707

6,800

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(138)
(606)

102
22

Share of other comprehensive income of entities accounted
for using equity method(16)48

Total other comprehensive income

(761)

174

5,946

6,974

5,946

6,974

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

2,738

34,6525,000

Treasury shares(3,080)Total shareholders'equity39,310Changes of items during
periodDividends of surplus
Profit attributable to ownersof parent
Change of scope of
consolidation(1,619)(1,619)

6,707

6,707

(110)

(110)

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

––

4,977

(0)

4,976

5,000

2,738

39,629(3,081)

44,287

Accumulated other comprehensive income
Valuation difference on
Deferred gains or losses Total accumulated otheravailable-for-saleon hedges
comprehensive income
securities
Balance at beginning ofcurrent period

646

473

1,120

Total net assets

40,430Changes of items during
periodDividends of surplus(1,619)Profit attributable to ownersof parent

6,707

Change of scope ofconsolidation(110)

Purchase of treasury shares
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

(0)
(138)

(623)

(761)

(761)

(138)

(623)

(761)

4,215

508

(149)

359

44,646

7

Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

2,738

39,6295,000

Treasury shares(3,081)

Total shareholders'equity
44,287

Changes of items during
periodDividends of surplus(1,889)(1,889)Profit attributable to ownersof parent

6,800

6,800

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

–

–

4,910

(0)

4,910

5,000

2,738

44,540(3,081)49,197

Accumulated other comprehensive income
Valuation difference on
Deferred gains or losses Total accumulated otheravailable-for-saleon hedges
comprehensive income
securities
Balance at beginning ofcurrent period

508

(149)

359

Total net assets

44,646

Changes of items during
periodDividends of surplus(1,889)Profit attributable to ownersof parent

6,800

Purchase of treasury shares(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

102

71

174

174

102

71

174

5,084

611

(78)

533

49,731

8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
9,469

9,761

3,185(97)3,510(2)

Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability

9112(1)
36

Interest and dividend income
Foreign exchange losses (gains)

(57)
134

(54)
13

Share of (profit) loss of entities accounted for using equity
method

(134)

(241)

Loss on retirement of non-current assets
Loss (gain) on sales of non-current assets

33
1521(0)Loss (gain) on valuation of investment securities
Loss on valuation of golf club memberships

480–

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

(102)
(183)

(454)
(9,853)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes(2,220)28

13,209
(714)

(90)
(570)

(1,248)659

Other, net

1(18)Subtotal

9,530

15,1245754

Depreciation
Increase (decrease) in allowance for doubtful accounts

Decrease (increase) in other assets
Increase (decrease) in other liabilities

Interest and dividend income received
Income taxes paid

(4,256)(2,975)

Net cash provided by (used in) operating activities

5,331

12,202

Payments into time deposits
Proceeds from withdrawal of time deposits(1,704)
2,263(2,901)
3,239

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(2,073)0(1,314)0

Purchase of intangible assets
Purchase of shares of subsidiaries(1,081)–(757)(795)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits(102)
64(148)135

Other, net

(36)

(0)

(2,669)(2,543)

Cash flows from investing activities

Net cash provided by (used in) investing activities

9

(Millions of yen)

Cash flows from financing activities
Repayments of finance lease obligations

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
(76)

(130)

Purchase of treasury shares
Cash dividends paid

(0)
(1,619)(0)(1,889)Net cash provided by (used in) financing activities(1,696)(2,020)Effect of exchange rate change on cash and cash equivalents

10(8)Net increase (decrease) in cash and cash equivalents

975

7,630

Cash and cash equivalents at beginning of period

15,521

16,52629–

16,52624,157

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period10