Connecting to the future

2019
INVESTORINFORMATIONTokyo Broadcasting System Holdings, Inc.

Consolidated Financial Highlights

Net Sales

Operating Income(Millions of Yen)

347,817(Millions of Yen)

348,539

355,363

361,954366,353

19,87815,728

15/3

16/3

17/3

18/3

15/3

19/3

Ordinary Income

17,17916/3

17/3

18,80018,572

18/3

19/3

Profit Attributable to Owners of Parent(Millions of Yen)

26,207

26,923(Millions of Yen)

28,83525,20522,67818,915
12,811

15/3

16/3

17/3

Total Assets(Millions of Yen)

653,732

649,970

15/3

16/3

18/3

19/3

821,737

798,481

15/3

14,497

16/3

17,182

17/3

18/3

19/3

600,950

601,291

18/3

19/3

Total Net Assets(Millions of Yen)

707,063

17/3

16,136

517,430

18/3

19/3

456,118

458,208

15/3

16/3

17/3

Contents
15

Major Indices

At a Glance

17

Segment Information

Organization

19

TBS Television5

Corporate Data

22

Financial Data of Major Group Companies

6

Business Report24

TBS Networks

2

To Our Stakeholders

3
4

11 Consolidated Financial Statements

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

Forward-Looking Statements
This report contains forward-looking statements based on management’s assumptions and beliefs in light of the information then 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.

Tok yo Broadcasting System Holdings, Inc.

1

INVESTOR INFORMATION 2019

To Our Stakeholders

The following is a brief summaryof business operations during
the fiscal year ended
March 31, 2019.

In January this year, TBS began a major undertaking:production that had spread across many subsidiaries

the Akasaka Entertainment City Initiative. The purpose

was brought together in TBS Sparkle, while subsidiariesof this project is to develop and expand new

in the multi-visual and cultural events division merged

entertainment venues and events for cultural

together, becoming TBS Glowdia. Through integration

communication with the aim of making Akasaka “a cityof this kind, we intend to promote effective use ofthat delivers the greatest entertainment in the world.”

resources and put in place a corporate structure readyThis major project, lasting for the next 10 years, forms

to reach out to the world.

part of our “comprehensive media strategy for synergy

By consistently meeting new challenges, our aims are

creation” that was outlined in the Group Medium-Term

to evolve as a media provider enjoying public affection

Management Plan 2020. Through this initiative, we are

and trust and to continue on the path of corporate

committed to increasing corporate value and, at thegrowth.

same time, we are creating culture and revitalizing theJune 2019local community.
In our main business, terrestrial TV broadcasting, thefiscal year ended March 31, 2019 was mostly positive,
with audience ratings in the golden time slot returning
to double-digit figures for the first time in seven years.

Takashi Sasaki

To maintain this favorable trend, we are restructuring
the TBS Group, starting with our production companies.

President and Representative Director

As a result, the expertise in program and content

Tok yo Broadcasting System Holdings, Inc.

Tokyo Broadcasting System Holdings, Inc.

2

INVESTOR INFORMATION 2019

At a Glance

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

Terrestrial TV
broadcasting

Terrestrial radio
broadcasting

Manufacture &sale of cosmetics

Miscellaneous
retailing

Satellite
broadcasting

Net & mobile
content

Planning &production ofaudio & visualcontent

Real estateleasing

Net Sales by Business Segment

Broadcasting¥218.3 billion

4.4%

36.0%

(Year ended March 31, 2019)

59.6%

Multi-Visual Ventures and Cultural Events¥131.7 billion
Real Estate¥16.2 billion

Tok yo Broadcasting System Holdings, Inc.

3

INVESTOR INFORMATION 2019

Organization
As of April 1, 2019

Tokyo Broadcasting System Holdings, Inc.

Media and Content
Tokyo Broadcasting System Television, Inc.

AKASAKA GRAPHICS ART, INC.

TBS Radio Inc.

OXYBOT, Inc.

BS-TBS, INC.

TBS MEDIA RESEARCH INSTITUTE Inc.

C-TBS, Incorporated

TBS International, Inc.

TBS SPARKLE, Inc.

TBS GLOWDIA, Inc.

absorbed and merged

absorbed and merged

TBS-VISION, Inc.

TBS ProNex Inc.

FF TOHO Inc.

Vecte, Inc.

DREAMAX TELEVISION, INC.

TBS Service, Inc.

JASC

Grand Marche, Inc.

(Japan Artvideo Service Collaborative, Inc.)

TBS TriMedia, Inc.

VuCast, Inc.

on April 1, 2019
on January 1, 2019NICHION, INC.

TBS-TEX, Inc.

TC Enter tainment Incorporated

Totsu Inc.

Golf Network Plus Inc.

Ar t Communication System, Inc.

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

TLC Co., Ltd.

Lifestyle

Equity-Method Af filiates

StylingLife Holdings Inc. (with two other group companies)

WOWOW Inc.
Premium Platform Japan, Inc.

Real Estate and Others

Place Holder, Inc.

Midoriyama Studio City, Inc.
TBS Kikaku Co., Ltd.
Akasaka Heat Supply Co., Ltd.
TBS Sunwork, Inc.

Tok yo Broadcasting System Holdings, Inc.

4

INVESTOR INFORMATION 2019

Corporate Data
As of April 1, 2019

Date of Establishment
Head Office

May 10, 1951 (Registered on May 17)
5-3-6 Akasaka, Minato-ku, Tokyo 107-8006, Japan
www.tbsholdings.co.jp/ir/en/index.html
Stock Code: 9401, TSE First Section¥54,986,892,896
Tokyo Broadcasting System Holdings, Inc.
192
Tokyo Broadcasting System Television, Inc. 1,105
60
TBS Radio Inc.

Paid-in Capital
Number of Employees

1

5

4

3

2

6

1 Newsroom at TBS Television

3 Akasaka Biz Tower

5 TBS studio for news programs

2 Sub-control room at TBS Television

4 TBS Holdings Head Office

6 TBS studio for variety shows

Major Shareholders and Number of Shares Held (Top 10)(as of March 31, 2019)

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

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

9,853,700

5.64

9,310,500

5.32

MBS Media Holdings, Inc.

8,848,100

5.06

Mitsui Fudosan Co., Ltd.

5,713,728

3.27

NTT Docomo, Inc.

5,713,000

3.27Japan Trustee Services Bank, Ltd.
(Trust Account)

5,166,900

2.95

Panasonic Corporation

5,033,180

2.88

Nippon Life Insurance Company

5,006,235

2.86

Sumitomo Mitsui Banking Corporation

4,679,267

2.67

Mitsui & Co., Ltd.

4,288,000

2.45

Tok yo Broadcasting System Holdings, Inc.

5

INVESTOR INFORMATION 2019

Business Report
From April 1, 2018 to March 31, 2019

The Current Position of Tokyo Broadcasting System Holdings, Inc.
and Subsidiaries
Broadcasting

1 Business Activities and Results

Tokyo Broadcasting System Television, Inc. posted time
During the consolidated fiscal year under review, Japan’s

revenue of ¥87,900 million, up 1.8% year on year, spot

economy continued on a path of a modest recovery, withrevenue of ¥83,606 million, down 0.1% year on year, andimprovements seen in the employment and income

content revenue (including advertising revenue earned

environments. Meanwhile, the outlook remains unclear due tothrough domestic broadcast syndication and free video

the effects of weak export demand and production in somestreaming) of ¥10,829 million, up 4.8% year on year, forbusiness areas, uncertainties in overseas economies, andthe fiscal year under review. Time sales rose due tofinancial and capital market fluctuations.

increased regular sales supported by improved audience

Against this backdrop, consolidated net sales of the Groupratings, strong sales of one-off sports broadcasting programsfor the fiscal year ended March 31, 2019 increased 1.2%

(e.g. 2018 FIFA World Cup Russia, 2018 Asian Games inover the previous fiscal year to ¥366,353 million, due toJakarta, and FIVB Women’s Volleyball World Championshipincreased revenues (e.g. increased time revenue due toJapan 2018), and brisk sales during the New Year holiday

large-scale time one-off sales, etc., growth of content revenue

season. Spot income was slightly lower than the previous

including advertising revenue from free video streaming

year on a full-year basis due to poor performance (i.e. theservices, and revenue growth of the StylingLife Group led bythat business, which remained strong through the creation of
big hit products). However, spot revenue declined slightly,
affected by spot advertising market downturns. Operating
expenses (i.e., the cost of sales and selling, general andadministrative expenses) increased 1.3% over the previous
fiscal year to ¥347,780 million due to the incurrence of
higher broadcasting fees related to large-scale sports
broadcasting and higher expenses incurred to increase
revenue. As a result, operating income decreased 1.2% fromthe previous fiscal year to ¥18,572 million, while ordinary2018 Asian Games in Jakarta

income increased 7.1% to ¥28,835 million, mainly due to© Takao Fujita/Photo Kishimoto

increased dividend income, and profit attributable to ownersof parent increased 46.7% to ¥25,205 million, mainly due
to the posting of a gain on sales of investment securities as
extraordinary income.

FIVB Women’s Volleyball
World Championship Japan 2018

Tok yo Broadcasting System Holdings, Inc.

6

INVESTOR INFORMATION 2019

Business Report
From April 1, 2018 to March 31, 2019

volume of advertisements in the Kanto Region decreased from

Multi-Visual Ventures and Cultural Events

the previous year except during January and February),

Regarding this business segment, Tokyo Broadcasting System

although 4th quarter sales increased 10.1% year-on-year.

Television, Inc. posted consolidated net sales of ¥28,231

Market share among five television stations increased 0.4

million, a decrease of ¥1,496 million, down 5.0% from thepoints from the previous fiscal year to 19.1%. Content

previous fiscal year. Regarding events, sales were strong (e.g.

revenue rose mainly due to increased advertisement

Musée du Petit Prince received a record-high number ofplacements for free video streaming.

annual visitors and Rubens and the Birth of the Baroque

BS-TBS, INC. posted net sales of ¥16,399 million, down

attracted more than 330,000 visitors). Regarding concerts

2.3% year on year for the fiscal year under review. Totaland stage performances, Shinkansen ☆ RS Metal Macbeth,sales declined due to poor time one-off sales performance

BOUM! BOUM! BOUM! Shingo Katori NIPPON First

mainly caused by a no content provision related to sports TV

Exhibition, and other popular performances were presented

programs and to lower business performance affected by aat IHI Stage Around Tokyo, Asia’s first 360-degree revolving

decline in the number of large-scale concerts from thetheater, but sales declined due to a decrease in the number

previous year, despite the growth of time regular sales mainlyof performances amid changes to stage performance plans

due to the restoration of the quota set for each company andand reactionary declines in relation to the Seven Souls in theincreases in sales quotas, as well as strong shopping

Skull Castle series. In the film business, the Company’s sales

program sales.

decreased from the previous fiscal year, although it had a

TBS Radio Inc. posted net sales of ¥9,785 million, downseries of hit films, such as Café Funiculi Funicula released in

6.6% year on year for the fiscal year under review. Its

September, Sumaho o Otoshita Dakenanoni (Stolen Identity)

revenue decreased due to the slowdown of adverse market

released in November, and Whistleblower released in

conditions.

February. Businesses targeting overseas markets reported

As a result, consolidated net sales from the Broadcastingsales declines due to poor broadcast syndication sales

Business segment increased ¥684 million, up 0.3% from therelated to animations and dramas, despite strong sales inprevious fiscal year to ¥218,317 million for the fiscal year

SASUKE and other formats. In the CS business, sales

under review. Regarding costs and expenses, increases indeclined significantly due to the termination of TV broadcasts

broadcasting fees related to large-scale one-off sports events,

of Chiba Lotte Marines games and a decrease in the number

costs incurred by the commencement of BS4K broadcasting,of subscribers on each platform.

and depreciation expenses incurred due to equipment

The StylingLife Group increased its sales to ¥71,896

replacement can be noted in particular. Tokyo Broadcasting

million, up 2.6% year on year in the fiscal year under review,

System Television, Inc. secured an increase in profit due to a

led by the cosmetics business, which remained strong

decrease in personnel expenses from working-style reforms,
but due to the effect of cash-flow deterioration of a
subsidiary, this company’s operating income decreased¥128 million (3.9%) from the previous fiscal year to ¥3,172
million due to the effects of net decreases of othersubsidiaries.

Shinkansen ☆ RS Metal Macbeth

Tok yo Broadcasting System Holdings, Inc.

7

INVESTOR INFORMATION 2019

Business Report
From April 1, 2018 to March 31, 2019especially for hit products and the core retailing business,

Real Estate

Plazastyle Company, which also recorded an increase in

Occupancy of Akasaka Biz Tower continued to remain highsales of cosmetics, clothing and fashion accessories, andand earnings from The Hexagon building, which is adjacent

others.

to the Company’s building, were added from the fiscal year

Consolidated net sales from the Multi-Visual Ventures andunder review. As a result, net sales from the Real Estate

Cultural Events business segment increased ¥3,313 million,

business segment increased ¥400 million, up 2.5% year on

up 2.6% from the previous fiscal year to ¥131,767 million,

year from the previous fiscal year to ¥16,268 million.

mainly due to increased sales of newly consolidated

Operating income decreased ¥167 million, down 2.1%

subsidiaries. Operating income increased ¥75 million, up

year on year to ¥7,787 million, mainly due to an increase in

1.0% from the previous fiscal year to ¥7,626 million, despite

expenses such as repairs and maintenance.

higher costs incurred to generate more sales.

2 Capital Investment
Total capital investment in the fiscal year under review was¥30.3 billion.
Capital investment consists of ¥15,100 million for theCompany, ¥9,900 million in Tokyo Broadcasting System
Television, Inc., ¥2,150 million in the StylingLife Group,¥1,460 million in BS-TBS, INC., and ¥320 million in
TOTSU Inc.
Capital investment in the Company was made mainly toacquire The Hexagon building, which is adjacent to theCompany’s building. Capital investment in Tokyo
Broadcasting System Television, Inc. mainly included
emergency power generation systems, sub-upgrade of N

Cafe Funiculi Funicula© Cafe Funiculi Funicula Film Partners

The Hexagon building

Tok yo Broadcasting System Holdings, Inc.

8

INVESTOR INFORMATION 2019

Business Report
From April 1, 2018 to March 31, 2019

Studio, upgrade of line center facilities, renewal of front

TBS Total Media, Inc. changed its trade name to TBS

entrance, and upgrade of elevators. Capital investment in the

GLOWDIA, Inc. on December 18, 2018, and thereafter

StylingLife Group increased mainly because of the purchasebecame a company surviving an absorption-type merger onof land and building(s) for plants in BCL Company and

April 1, 2019. Through the absorption-type merger, seven

PLAZA store facilities. 4K master is a main reason of capitalcompanies, including five consolidated subsidiaries (TBSinvestment in BS-TBS, INC.

ProNex, Inc., Vecte, Inc., TBS Service, Inc., Grand Marche,Inc., TBS TriMedia, Inc.) and two wholly owned subsidiaries

3 Capital Procurement

became companies disappearing in an absorption-type merger.

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

5 Priorities

fiscal year under review was ¥80 million in short-term loans
payable and ¥3,000 million in long-term loans payable

Changes in the environment surrounding the Company further(including the current portion and excluding leaseaccelerated. Amid a slowing domestic market due to an

obligations).

aging population with fewer children and a decreasing
population, people can widely and easily enjoy video

In order to ensure flexible access to business finance, as ofthe end of the fiscal year under review, the Company had

content with smartphones and tablets, because these devices’established commitment line agreements totaling ¥30 billion

functions have become more sophisticated, creating a trendwith multiple financial institutions (the balance of the fundsof diversification of the viewer environment. The advertisingdrawn is nil, and the available balance is ¥30 billion).

methods and needs of advertisers are also becoming diverse
with these changes in lifestyle.

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

Amid these circumstances, we developed the Groupsome of the account receivables are in the process of being

Medium-Term Management Plan 2020 in February 2018liquidated.

and decided to make Group-wide efforts to achieve new

4 Status of Important Reorganization

goals. The Plan aims to develop a media group that is

On June 29, 2018, the Company established twoof integration between broadcasting and telecommunications

companies, TBS Contents Product, Inc., a new programservices and the post-Olympic and Paralympic Games Tokyo

production company, and TBS Total Media, Inc., a new2020 period with the following three priorities:

always loved and trusted by people, looking towards an era(1) Increase of the competitiveness of Tokyo Broadcasting

company in the Multi-Visual Ventures and Cultural Events

System Television

segment, to review the structure of the Group and focus the(2) Strategic investments toward diversification into total

strengths of the Group, in accordance with the Group

media that creates synergies for TBS

Medium-Term Management Plan 2020.

(3) Performance of the social responsibility that the TBS

TBS Contents Product, Inc. changed its trade name to TBS

Group should fulfill.

SPARKLE, Inc. on November 15, 2018, and thereafter
became a company surviving an absorption-type merger on

Major Initiatives in FY2018 under Group
Medium-Term Management Plan 2020

January 1, 2019. Through the absorption-type merger, elevencompanies, including five consolidated subsidiaries (TBSVision, Inc., Dreamax Television Inc., VuCast, Inc., FF TOHOWith regard to Priority (1) “increasing the competitivenessInc., Japan Artvideo Service Collaborative, Inc. (JASC) and sixof Tokyo Broadcasting System Television, Inc.,” rankings inwholly owned subsidiaries became companies disappearing

terms of household audience ratings increased 0.1 points

in an absorption-type merger.

Tok yo Broadcasting System Holdings, Inc.

9

INVESTOR INFORMATION 2019

Business Report
From April 1, 2018 to March 31, 2019

over the previous year in both the golden time and prime

comprehensive media group and continue to evolve.

time categories. In particular, we recorded a double-digit

With regard to Priority (3) “exercising social responsibility,”rate (10%) in the golden time category for the first time inwe concluded a partnership agreement with Minna-denryoku,

seven years since FY2011. Our dramas and variety showsInc., the operator of a renewable energy business, inproved popular with many viewers. In terms of content, we

September 2018, and the power supply for the Toda

are also confident that TBS can create a number of unique,Transmitter Station of TBS Radio shifted to 100% renewable

attractive programs, such as Black Forceps, Gibo to Musume

energy in December 2018. In line with this action, we

no Blues (Stepmom and Daughter Blues) and Dairenai (Don’t

launched the Clean Power Campaign in collaboration with aForget Me).

radio program, through which we reviewed the surrounding

Through our news media activities, we have built a system

environment and took necessary actions with listeners.

for distributing news reports 24 hours a day, 365 days aWorking toward “realizing an inclusive society,” which isyear, through the integrated operation of terrestrial

a theme of the 2020 Tokyo Olympic and Paralympic

broadcasting and digital media to provide accurateGames, we created TV content that communicated theinformation ahead of any other media. During the period ofchallenges and the possibilities faced by para-athletes,the 2018 Hokkaido Eastern Iburi earthquake, which occurred

broadcasting it on such programs as Honoo-no Taiiku-kai TV

in February 2019, we were the first of the commercial TV(a gameshow where members of the public challenge sports

stations in Tokyo to deliver the news under the mission of

professionals). Also, in May 2018, in an effort to promote“saving as many lives as possible.” Furthermore, we actively

para-sports, we organized the Inclusive Sports Festival withutilized digital tools such as live stream and Twitter to report

the Japanese Para-Sports Association.

a sequence of news flashes on the conditions of nuclear

We will continue to take various measures to fulfill a higher

stations and information on electric power and traffic.

level of social responsibility as a broadcaster.

With regard to Priority (2) “strategic investments,” weAs the result of these activities under the Medium-Termannounced the Akasaka Entertainment City Initiative inManagement Plan, we set consolidated net sales of ¥400

January 2019. The purpose of this project is to develop andbillion, consolidated operating income of ¥25 billion, andexpand new entertainment facilities and functions for cutting-ratio of operating income to net sales of 6.3% on aedge cultural communication with the aim of making Akasaka

consolidated basis as goals to be achieved in FY2020. We“a city that conveys the greatest excitement in the world.” In

are currently forging ahead to achieve these goals.

order to achieve this goal, we concluded a business

For FY2018, which was the first year of this Plan, we

agreement on the joint redevelopment of the Kokusai Shin-achieved consolidated net sales of ¥366.3 billion,

Akasaka Building with Mitsubishi Estate Co., Ltd. In the

consolidated operating income of ¥18.5 billion and a ratio

future, we will proceed with a plan to build a base fromof operating income to net sales of 5.1% on a consolidated

which next-generation entertainment will be distributed in thisbasis, which are in line with forecasts as of this point in time.

redevelopment area.

We will continue striving to provide high-quality content

In addition, we invested in Tyffon Inc., a company which isand aim to achieve further growth and corporate value

developing the digital video area, such as location-type VR

enhancement to meet the expectations of our shareholders.

and MR (mixed reality), with the aim of expanding it into new
business fields. This area has a high level of affinity with theCompany’s businesses. Because XR (extended reality)
technology is expected worldwide as a growth field, we arecommitted to continuing to place importance on this area.
In the future, we will further expand our business as a

Tok yo Broadcasting System Holdings, Inc.

10

INVESTOR INFORMATION 2019

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

As of March 31, 2019 and 2018

2018

2019

¥ 81,850¥ 72,293

42,51642,942

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

300

700

Merchandise and finished goods

7,769

8,832

Program rights and work in process

7,072

5,985

Raw materials and supplies

673

722

Prepaid expenses

10,971

8,644

Other

4,662

4,222

Allowance for doubtful accounts

(157)

(151)

155,660

144,192

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

201,667

208,008

Accumulated depreciation(110,383)(115,140)

Buildings and structures, net

91,28392,867

Machinery, equipment and vehicles

85,51784,783(75,623)(73,152)

Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets

9,894

11,63130,99831,430(28,464)(28,777)

2,534

2,652

84,001

96,821

4,237

4,159

Accumulated depreciation(2,523)(2,797)

Lease assets, net

1,713

1,362

Construction in progress

1,201

1,096

190,628

206,431

Software

5,734

5,732

Goodwill

16,79815,002

37

17

Other

1,273

1,377

Total intangible assets

23,844

22,128436,399

411,453

240

204

2,961

2,541

Total property, plant and equipment
Intangible assets

Lease assets

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

Tok yo Broadcasting System Holdings, Inc.

11

173

245

12,014

11,477

(184)

(192)

451,603425,728

666,076

654,289¥ 821,737¥ 798,481

INVESTOR INFORMATION 2019

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

As of March 31, 2019 and 2018

2018

2019

¥ 39,446¥ 37,780—

80

Current portion of long-term loans payable

18,2001,200

Accounts payable—other

12,773

14,388

Income taxes payable

5,891

7,894

Accrued consumption taxes

1,377

1,355

Accrued expenses

2,111

2,059

Provision for bonuses

4,964

5,059

Provision for directors’ bonuses

139

126

Provision for removal of noncurrent assets

73—

Other provision

401

393

Other

8,004

9,760

Total current liabilities

93,38280,099

3,000

1,800

121

127

15,943

15,770

679

433

Deferred tax liabilities

92,38983,268Other

15,26915,690Total noncurrent liabilities

127,403

117,090

220,786

197,189

Capital stock

54,98654,986

Capital surplus

46,76046,751Retained earnings

262,138

281,372

(54)

(57)

363,830

383,053

221,405

201,539

Deferred gains or losses on hedges

(117)

25

Foreign currency translation adjustment

(34)

(2)

Remeasurements of defined benefit plans

(29)

(2)

221,224

201,560

Non-controlling interests

15,895

16,677

Total net assets

600,950

601,291¥ 821,737¥ 798,481

Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term loans payableNoncurrent liabilities
Long-term loans payable
Provision for environmental measures
Net defined benefit liability
Lease obligations

Total liabilities
Net assets
Shareholders’ equity

Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

Total liabilities and net assets

Tok yo Broadcasting System Holdings, Inc.

12

INVESTOR INFORMATION 2019

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

As of March 31, 2019 and 2018

2018

2019

¥ 361,954¥ 366,353

248,204

250,624

113,750

115,728

94,94997,15618,80018,572

26

25

8,083

10,335Equity in earnings of affiliates

391

—

Other

394

1,413

8,896

11,774

378

226

—

702

Loss on retirement of noncurrent assets

166

173

Other

228

408

Total non-operating expenses

772

1,511

26,923

28,835Gain on sales of investment securities

988

12,849Total extraordinary income

988

12,849Restructing cost

—

1,256

Impairment loss

149

390

Loss on removal of noncurrent assets

139—

Loss on business withdrawal

97—

Early extra retirement payments

52

12

Loss on retirement of noncurrent assets

33—

Loss on valuation of investment securities

4—

Loss on sales of shares of subsidiaries and associates

—

19

476

1,678

Profit before income taxes

27,43540,006

Income taxes—current

9,923

13,738

Income taxes—deferred

(549)

23

Total income taxes

9,374

13,761

Profit18,061

26,244878

1,039¥ 17,182¥ 25,205

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

Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method-NOE

Ordinary income
Extraordinary income

Extraordinary losses

Total extraordinary losses

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

Tok yo Broadcasting System Holdings, Inc.

13

INVESTOR INFORMATION 2019

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

As of March 31, 2019 and 2018
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of long-term prepaid expenses
Amortization of goodwill
Gain on valuation of investment securities
Gain on sales of investment securities
Increase (decrease) in allowance for noncurrent asset retirement expense
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Loss on retirement of noncurrent assets
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in (earnings) losses of affiliates
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Increase (decrease) in notes and accounts payable—trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of stocks of subsidiaries and affiliates
Other, net
Net cash used in investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Increase in long-term loans payable
Repayment of long-term loans payable
Proceeds from disposal of treasury shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Repayments to non-controlling shareholders
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation
Cash and cash equivalents at end of period

Tok yo Broadcasting System Holdings, Inc.

14

2018

2019

¥ 27,435
14,866
77
1,796
4
(988)
(359)
280
(170)
199
(15)
(8,110)
378
(391)
(56)
(1,144)
(713)
3,315
(106)
36,297
8,446
(378)
1,272
(10,100)
35,536¥ 40,006
14,89737
1,796—(12,829)
(73)
83
(295)
173
1
(10,361)
226
702
(253)
319
2,390
(1,882)357
35,298
10,724(353)
1,331(11,785)
35,215(6,079)(3,703)(3,503)
2,110(5,232)2,380(14,028)(27,074)(2,286)(3,805)
14,303(4,254)
1,528(21,588)

—
(769)
4,800
(6,000)397(5,587)
(135)
—
(435)
(7,730)(40)(13,738)
67,391—¥ 81,12980——(18,294)—(5,415)
(161)
(169)
(427)
(24,387)32(10,728)
81,1291,632¥ 72,033

INVESTOR INFORMATION 2019

Major IndicesEarnings per Share

Return on Equity

(Yen)

(%)

144.31

79.12

15/3

83.12

16/3

92.46

17/3

4.3

98.38

18/3

19/3

3.2

3.3

15/3

16/3

3.4

17/3

3.2

18/3

19/3

Ratio of Ordinary Income to Total Assets

Ratio of Operating Income to Net Sales

(%)

(%)

5.6
4.5

3.9
3.5

3.5

3.6

18/3

19/3

4.9

5.2

5.1

18/3

19/3

3,349.52

3,347.03

18/3

19/3

3.1

15/3

16/3

17/3

15/3

16/3

17/3

Equity Ratio

Net Assets per Share

(%)

(Yen)

66.7

15/3

68.3

16/3

71.1

71.2

73.2
2,689.56

17/3

18/3

19/3

Tok yo Broadcasting System Holdings, Inc.

15/3

15

2,878.29
2,545.60

16/3

17/3

INVESTOR INFORMATION 2019

Major Indices

Number of Shares Issued at the End of the Term

Amount of Treasury Shares at the End of the Term

(Including Treasury Shares)(Shares)(Shares)

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

28,404,517

15,981,914

15/3

16/3

17/3

18/3

19/3

15/3

16/3

15,871,409

17/3

41,774

43,205

18/3

19/3

Cash Flows from Operating Activities

Cash Flows from Investing Activities(Millions of yen)

(Millions of yen)

36,48535,53632,33735,215–2,32627,851–8,956–10,078–14,028–21,588
15/3

16/3

17/3

18/3

19/3

15/3

16/3

17/3

18/3

19/3

Cash Flows from Financing Activities

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

(Millions of yen)

81,12974,37472,03367,391
56,728–5,326–7,730–24,387–25,242–36,718
15/3

16/3

17/3

18/3

19/3

Tok yo Broadcasting System Holdings, Inc.

15/3

16

16/3

17/3

INVESTOR INFORMATION 2019

18/3

19/3

Segment Information
Consolidated Results by Business Segment(Millions of yen)

FY2019External
sales

y/y change

Operatingincomey/y change

Broadcasting¥218,317+684¥ 3,172–128

Multi-Visual Ventures and Cultural Events

131,767+3,313

7,626+75

Real Estate

16,268

+400

7,787

–167

¥366,353+4,398¥18,572–227

Consolidated Total

Capital Expenditures and Depreciation(Millions of yen)

Consolidated

FY2019

Capital expenditures¥ 30,374

Depreciation

14,161

TBS Television

FY2019

Capital expenditures¥ 9,919

Depreciation

8,613

Tok yo Broadcasting System Holdings, Inc.

17

INVESTOR INFORMATION 2019

Segment Information
FY2020 Consolidated and TBS Television Business Results Forecasts(Millions of yen)

2020

Consolidated

FY2020Net sales¥364,800

Operating income

15,500Ordinary income

24,300

Profit attributable to owners of parent

14,900Business Results Forecast by Business Segment(Millions of yen)

Consolidated

FY2020Consolidated net sales¥364,800

Media and Content

276,400

Lifestyle72,100Real Estate and Others

16,300Consolidated operating income

15,500Media and Content

5,800

Lifestyle

2,800

Real Estate and Others

6,900*Figures are adjusted to the new segment classifications.

(Millions of yen)

2020

TBS Television

FY2020Net sales¥217,500

Operating income

7,400

Ordinary income

10,200Net income

7,100

Time/Spot, Program Cost Forecasts
Full year

Time

–0.1%

Spot

+1.1%

Program cost

¥98,800 million

Note: The estimated figures above, which were announced on May 14, 2019, are subject to revision. For the most up-to-date estimated figures, please see theCompany’s web site.

Tok yo Broadcasting System Holdings, Inc.

18

INVESTOR INFORMATION 2019

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

FY2019y/y change¥186,189+1,819Time advertising

87,900+1,511

Spot advertising

83,606–95

Program sales in Japan

10,829+498

Others3,853–94Operations

28,231–1,496

Real estate

2,959

–94

¥217,381+228

Television

Total income

Monthly Changes in Time/Spot Earnings
(%)

150

Time
Spot
120

98.9
90

118.7

114.7

96.1

106.1

103.0

93.1

104.7

106.7

104.1

106.0

96.4

94.9

96.8

98.0

97.5
97.6

100.9

115.5

103.0

101.8
100.9
88.9

87.6

60
2018

Apr.

2019

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Q1

Q2

Q3

Q4

Full year● Time

105.1

98.5

105.6

98.1

101.8

● Spot

95.6

98.3

96.6

110.1

99.9

19.3

19.2

18.7

19.1

19.1

TBS share among five key broadcasters

A Story to Read When You First Fall in Love

Downtown Rocket

Tok yo Broadcasting System Holdings, Inc.

19

INVESTOR INFORMATION 2019

Meet Me After School

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

Growth rate

Share

1

Information, telecommunications and broadcasting

+7.7

14.6

2

Foods

–3.1

9.9

3

Alcoholic and other beverages

–8.5

9.5

4

Pharmaceuticals

–2.0

8.6

5

Cosmetics and toiletries

–1.5

8.3

6

Automobiles and transportation equipment

+2.8

6.6

7

Transportation and leisure

–12.5

6.0

8

Financial services

+32.0

5.9

9

Real estate and construction

+16.6

5.7

10

Restaurants and related services

–12.0

4.1

(Ranked in order of sales)

TBS Television Business Segment Income
Segment

Operations
bureauFull year y/y change

Remarks

Show / events business¥ 9,315–808

The Little Prince Museum generated record profit, and shows including No. 9 and Haikyu!!
showed favorable results. However, revenue declined due to a significant decrease in thenumber of performances of IHI Stage Around Tokyo, which had a full schedule in the previous
year, mainly due to the replacement of shows.

Movies

1,892

–179

Whistleblower, which launched in the 4th quarter, was a major hit. During the year, Café
Funiculi Funicula and Stolen Identity were also major hits, but revenue declined, falling shortof the performances of Mumon: The Land of Stealth, the 8-Year Engagement and The Crimes
That Bind in the previous year.

745

–133

Revenue decreased due to a lack of major hits and a slowdown in sales of overseas
programs.

Media business

10,538–660

Revenue decreased because the DVD segment was transferred to the licensing business in thisfiscal year and due to the completion of Lotte Marines’ games in CS broadcasting.

Overseas business

3,119

–225

Sales of SASUKE, which extended worldwide, were very strong, but revenue declined
because of slumping overseas sales of dramas in the first quarter.

Licensing business

1,610

+561

Revenue increased, mainly reflecting the hit of Boys Over Flowers Season 2 and Black
Forceps in the DVD segment, which was transferred in this fiscal year, and favorable sales ofgoods related to Volleyball World Championship and Downtown Rocket.

Extended field business

1,011

–50

Revenue decreased slightly despite some positive results beginning to appear following thelaunch of new businesses such as sports-related events.

¥28,231–1,496

Moviesandanimations
business

Animations

Content
businessbureau(Millions of yen)

Total

Stepmom and Daughter Blues

Sunday Morning

Tok yo Broadcasting System Holdings, Inc.

20

INVESTOR INFORMATION 2019

N StudioTBS Television 3
FY2018 Viewer Ratings
All day

Golden time*

Prime time**TBS

6.2 (4th)

10.0 (3rd)9.9 (3rd)NTV

7.8 (1st)

11.9 (1st)11.5 (1st)TV Asahi

7.7 (2nd)10.5 (2nd)10.6 (2nd)TV Tokyo

2.7 (6th)

6.3 (6th)

5.9 (6th)

Fuji TV

5.7 (5th)

8.1 (5th)

7.9 (5th)NHK

6.3 (3rd)9.9 (4th)

8.7 (4th)

HUT

40.4

60.1

57.5

Ratings for April 2, 2018 to March 31, 2019, on a weekly basis* 19:00–22:00** 19:00–23:00(%)(According to research by Video Research Ltd. in the Kanto region)

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

FY2019FY2018y/y change

Q1¥25,246¥23,770+1,475

Q2

25,13625,152–17

Q324,394

24,797–403

Q424,54625,997–1,451

Direct expenses

19,287

20,575–1,288Indirect expenses

5,259

5,422

–163

Fiscal year cumulative¥99,322¥99,717–394

FY2020 forecast¥98,800

Major expenses included in TV program costs:
Direct expenses:

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

Indirect expenses:

Absorbed costs including depreciation and personnel cost for employees

Pittanko Kan-kan

Monitoring

Tok yo Broadcasting System Holdings, Inc.

21

Bakuhou! THE Friday

INVESTOR INFORMATION 2019

Financial Data of Major Group Companies
TBS Radio Inc.

(Millions of yen)

FY2019Amounty/y change¥9,785–692

Operating income

290

–229

Ordinary income

294

–233

Net income

192

–150

Net sales

Recorded the highest ratings for 108 consecutive periods from August 2001 to June 2019.

BS-TBS, INC.

(Millions of yen)

FY2019AmountNet salesy/y change¥16,399–386

Operating income

2,345

–47

Ordinary income

2,394

–45

Net income

1,634

–39

Grand Marche, Inc.

(Millions of yen)

FY2019AmountNet salesy/y change¥14,445+388

Operating income

270

–86

Ordinary income

278

–66

Net income

138

–99

Tok yo Broadcasting System Holdings, Inc.

22

INVESTOR INFORMATION 2019

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

FY2019AmountNet salesy/y change¥71,896+1,842

Operating income

3,554

+405

Ordinary income

3,558

+446

Net income

1,829

+550

© 2017 Alice Taylor & Thomas Taylor All rights reserved.

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

ⓒ2017 Those Characters From Cleveland, Inc.

Tok yo Broadcasting System Holdings, Inc.

23

INVESTOR INFORMATION 2019

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

JNN

JRN

Television

Radio

HBC

ATV
RAB
ABS

IBC

TUY
YBC
BSN
KNB
TUT

MRO
FBC

BSS
TYS
KRY

RKB
NBC

OBS

ITV
RNB

RKC
KUTV

RKK
MBC

RSK

RCC

RNC
JRT

MBS
ABC

CBC

TBC
TUF
RFC

SBC

UTY
YBS

TBS
TBS R&C
SBS

WBS

MRT

RBC

JNN Overseas Bureaus

Moscow

London (& Middle East)
Paris

Beijing

Seoul
Tokyo (TBS)Shanghai

Los Angeles

BangkokTok yo Broadcasting System Holdings, Inc.

24

INVESTOR INFORMATION 2019

New York
Washington, D.C.

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