TV TOKYO : FY2022 Results Briefing Scripts 2.72MB

TV TOKYO Holdings Corporation

Financial Results Briefing for the Fiscal Year Ended March 2023

May 18, 2023

Event Summary

[Company Name]	TV TOKYO Holdings Corporation
[Company ID]	9413-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Financial Results Briefing for the Fiscal Year Ended March 2023
[Fiscal Period]	FY2023 Annual
[Date]	May 18, 2023
[Number of Pages]	22
[Time]	14:00 - 14:34
	(Total: 34 minutes, Presentation: 34 minutes)
[Venue]	Webcast
[Venue Size]
[Participants]
[Number of Speakers]	4
	Ichiro Ishikawa	CEO, President
	Hiroko Kitsunezaki	Senior Managing Director
	Hiroshi Yoshitsugu	Managing Director
	Takeshi Kozawa	Managing Executive Officer

Support
Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

1

Presentation

Kozawa: Thank you for joining us today for the presentation of TV TOKYO Holdings' full-year financial results for the fiscal year ended March 31, 2023, and its medium-term management plan.

Let me now introduce today's participants. Ichiro Ishikawa, CEO, President of TV TOKYO Holdings.

Ishikawa: I am Ishikawa. Thank you very much.

Kozawa: Hiroko Kitsunezaki, Senior Managing Director.

Kitsunezaki: Thank you very much.

Kozawa: Hiroshi Yoshitsugu, Managing Director.

Yoshitsugu: Thank you very much.

Kozawa: I am Kozawa, Managing Executive Officer and Assistant to the General Manager of Corporate Planning, and I will be facilitating today's session. Thank you very much.

First, Yoshitsugu, Managing Director, will give an overview of the financial results for the fiscal year ended March 31, 2023.

Yoshitsugu: My name is Yoshitsugu, Managing Director.

I would like to present a summary of our full-year results for the fiscal year ended March 31, 2023.

I am sure you have all seen both the financial results and the supplementary materials, so I will briefly explain.

Support
Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

2

First of all, TV TOKYO Group has centered on the strategy of tribrid, which maximizes the value of its content through the synergy of its three businesses, broadcasting, streaming and anime business, and has been operating under the policy of "all content, all streaming ." I believe that the result of this was shown in the financial results of the previous fiscal year.

In the fiscal year ended March 31, 2023, both time and spot advertising revenues were negative due to the sluggish TV advertising market itself and the rebound from the previous year's Olympic Games, but we were able to significantly increase revenues from rights streaming and other businesses.

As a result, consolidated net sales of TV TOKYO HOLDINGS increased 2% from the previous fiscal year to JPY150,963 million, marking the second consecutive fiscal year of revenue growth and a new record high. Consolidated operating income increased 7.5% to JPY9,229 million, ordinary income increased 2.4% to JPY9,378 million, and net income attributable to owners of the parent increased 11.6% to JPY6,724 million.

Operating income and ordinary income increased for the third consecutive year, and net income increased for the second consecutive year, both reaching record highs. The net income is slightly larger than the others because it includes the effect of the sale of policy shareholdings.

While it is true that headwinds are blowing against the broadcasting industry, the TV TOKYO Group has been working to change its earnings structure so that it does not rely solely on the broadcasting business. We believe that this was the driving force behind the increase in both sales and profit in the previous fiscal year, as well as our record-high profits.

I will now briefly explain the factors that cause fluctuations in operating income.

Please take a look at the breakdown of operating income for the fiscal year ended March 31, 2023, broken down by factor, and listen to the presentation as you see it.

First, the leftmost blue graph, the previous fiscal year, there was JPY8,584 million in consolidated operating income for the fiscal year ended March 31, 2022. From there, the increase and decrease are written to the

Support
Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

3

right. As I mentioned earlier, advertising revenue decreased in the broadcasting business, which is the core business of TV TOKYO, but on a profit basis, profits decreased 1.9% from the previous year or JPY306 million in total. I think it can be said that we were able to limit the decline to a relatively small percentage as far as business profit in the broadcasting business is concerned.

On the other hand, the rights business, which utilizes TV TOKYO's content to generate income outside of broadcasting, had a positive effect of JPY3,101 million on this business income, boosting profits. This was due to increased sales from streaming in China, Europe, and the United States, as well as from game rights and merchandising. The streaming business is also doing relatively well, with the number of subscribers for drama streaming and the economic information service, TV Tokyo BIZ, also increasing.

Then there is also the increase in overhead costs. As for indirect expenses, the increase is due to the growth of personnel, SG&A, and other expenses related to the entire company as a result of the "all content, all streaming" policy.

As for the group business, BS TV TOKYO posted a decrease in sales and an increase in profit. In the broadcasting area, the overall performance was dragged down by a slight downturn in the mail-order business. Although domestic and international royalties from animation theme songs and sales of programs to local broadcasters were strong, overall, the slump in mail-order sales had an impact. However, TV TOKYO's overall consolidated operating income increased, driven by the business profit of rights.

Now, let me explain more about TV TOKYO for terrestrial broadcasting.

First, broadcasting revenues. Time advertising revenue was down 6.9% from the previous year due to the rebound from the Olympics, although there were some positive aspects, such as program reorganization and strong sales during the yearend and New Year's holiday season. This is an internal budget ratio. Looking at the budgeted ratio, time income has been almost in line with the budget for the past year. Therefore, our internal evaluation is that, apart from market conditions and the reactionary factors of the Olympics, time revenue is showing a sense of stability.

Support
Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

4