djozma

Security Code 2329
Tohokushinsha Film Corporation
March 2010 Term
Information
Information Session
Session on
on the
the Full-Year
Full-Year Financial
Financial Report
Report
May 27, 2010
Business Overview
TFC has three main business segments of Production, Entertainment Media Content
and Broadcasting, as well as Retail Merchandising and Others (Education Business)
Group companies: 15 consolidated subsidiaries
Segment
Composition of net sales
for the 3/2010 Term
(Before offsetting between segments)
11.3%
Broadcasting
Business
Production
Business
7,326
16.5%
10,731
15.6%
56.5%
36,690
10,142
Three main entertainment
content-related segments
content-
Retail
Merchandising /
Others
Production
Business
Tohokushinsha
Advertising Production
Advertising Production
Divisions (No. 1 - 4)
Sales Promotion(ＳＰ)
Sales Promotion Division
Interactive Promotion Division,
Design Division
Post-production
TV Distribution
Content Rights Management
Business
Dubbing / Subtitling
Main Affiliates
Nibankohboh Productions Corp.
/ Lift Corp. / TFC Plus Corp.
Murayama Inc. / White Box Corp.
Omnibus Japan Inc.
Content Production Division
Entertainment
Media Division
Dubbing and Subtitling
Division
Broadcasting
Broadcasting Division
映像
Others
(Education
business)
Retail
merchandising
Visual-Techno Academy
No.1 & Only 1 Comprehensive Audio-Visual Production
TFC’s
Strength
*
Tohokushinsha Creates Inc.
Content Rights Management Business :
Film Distribution
Packaged Media Sales
Anime Production
Joint Development and Investments
Character and Licensing Business
・
・
・
・
・
9 brands 12 channels
Broadcasting
Business
Entertainment
Media Content
Business
SubSub-Segment
Production of feature films
/ TV programs
Entertainment
Media Content
Business
／ 8 affiliates subject to the equity method
Super! dramaTV / Family Theater
History Channel / The Cinema
Igo Shogi Channel / Classica Japan
Playboy Channel / Channel RUBY
Star Channel
National Trading, Inc.
＝Segment where TFC is rated as an
industry leader
* As of 3/31/2010
Industry leader position in main business segments
Synergy effects within the Group generating a competitive edge
1
March 2010 Term
Overview of the Full-Year Financial Results
2
Consolidated
March 2010 Term: Profit and Loss Summary
Net Sales ¥60.9 billion( ‐10.6% YOY, ‐2.6% from revised projection ) ・ Operating Income ¥3.7 billion( ‐42.3% YOY, ‐6.6% from revised projection )
Ordinary Income ¥4.1 billion( ‐36.1% YOY, ‐7.7% from revised projection ) ・ Net Income ¥1.3 billion( ‐12.3% YOY, ‐15.9% from revised projection)
3/2010 Term Results
vs. Same Period
Last Year
Unit: Million Yen
Net Sales
60,908
-7,223
-10.6%
-7,223 -10.6%
Cost of Sales
48,382
-3,414
-3,414
General / Administrative
Expenses
Operating Income
Non-Operating Profit / Loss
Ordinary Income
Extraordinary Profit / Loss
Net Income
-1,044
-10.7%
-1,044 -10.7%
3,772
309
-2,764
-2,764 -42.3%
4,082
-2,309
-36.1%
-2,309 -36.1%
-968
1,301
-1,644
-1,644
-2.6%
-2.6%
-268
-268
-6.6%
-6.6%
-340
-340
-7.7%
-7.7%
-6.6%
-6.6%
8,753
+454
+454
vs. Revised
Projection
－
－
： inventory devaluation
3/2009 term Including ¥2.5 billion in loss on
+2,990
+2,990
：
－
－
3/2010 term Including ¥0.5 billion in directors’
-182
-12.3%
-182 -12.3%
retirement allowance reserve
-246
-15.9%
-246 -15.9%
※Revised projection: Revised projection announced on 11/12/2009
3
Consolidated
B/S Highlights <As of 3/31/2010>
Total Assets ¥101.6 billion ( ‐¥4.1 billion from last year )
Reducing current liabilities by ¥3.3 billion, fixed liabilities by ¥1.6 billion to improve the ratio of net assets to 51.7%
Total Assets
Current Assets
Assets
Cash & Deposits
Notes & Accounts
Receivable
Entertainment Content
Exploitation Rights
Fixed Assets
Investment Securities
Liabilities
Liabilities / Net Aseets
Current Liabilities
Long-Term Liabilities
Net Assets
Capital
Capital/Profit
Retained Earnings etc.
Treasury Stock
Unrealized Gains on Securities
3/2009 Term
(As of the end of 3/2009)
3/2010 Term
(As of the end of 3/2010)
Share
Share
YOY
105,784
100.0%
101,663
100.0%
-4,120
77,357
73.1%
72,573
71.4%
-4,783
31,768
22,178
16,700
28,427
26.9%
5,143
54,099
2,487
52,015
-1,658
-311
29,090
-1,837
28.6%
5,158
51.1%
49,468
4,631
51,685
-1,289
-2,322
30,479
19,856
14,862
49,123
+14
48.3%
46,152
2,970
48.9%
52,540
2,487
52,685
-1,728
-117
+663
-4,976
Unit: Million Yen
Main Points
■Reduction due to amortization of exploitation rights
Full-year： ¥8.3 billion in acquisition
¥10.2 billion in amortization
■Increase of fixed assets
Adding goodwill associated with the acquisition
of Igo Shogi Channel
■Loan repayment (¥2.9 billion) etc.
-3,315
-1,660
51.7%
+855
0
+670
-69
+193
4
Consolidated
Cash Flow Highlights <As of 3/31/2010>
4/2009 －end of 3/2010: Operations CF +¥4.3 billion, Investment CF ‐¥2.0 billion,
Financing CF ‐¥3.8 billion, Cash & Equivalents Balance ¥27.3 billion ( ‐¥1.5 billion YOY )
(unit: Million Yen)
Net income before tax
Change in Trade Receivables (
△amount of increase)
△ amount of decrease)
Change in Advance Payments ( △amount of increase)
Change in Inventories ( △amount of increase)
Change in Trade Payables ( △amount of decrease)
Change in Advance Receipts ( △amount of decrease)
Change in Directors' Retirement Allowance Reserve (
From Operations
Others
Subtotal
Interest, corporate tax, etc.
CF total
From
From Investments Financing
Change in Time Deposits
Balance of Tangible Fixed Assets
Balance of Investment Securities
Others
CF total
Balance of Short-term Borrowings
Balance of Long-term Borrowings
Acquisition of Treasury Stock
CF total
Cash
etc.
Balance at the beginning of the term
After conversion: Increase
Balance at the end of the term
End of 3/2009
2,433
7,262
111
3
545
1887
175
1,791
10,427
3,757
6,670
End of 3/2010
3,114
2,447
1,912
86
2,301
909
75
1,000
5,880
1,517
4,362
△ 499
△ 618
△ 463
△ 1,876
△ 3,456
△ 6,111
0
418
△
△ 7,168
△ 458
△ 418
106
△ 1,252
△ 2,022
△ 2,920
0
69
△
△ 3,893
33,037
4,205
28,832
28,832
1,515
27,316
△
△
△
△
△
△
△
△
Due to the payment of directors’
directors’
retirement allowance
Including the reduction of
exploitation rights (¥
(¥1.8 billion)
△
Including the acquisition of
Igo Shogi Channel
Including loan repayments
△
5
Consolidated
March
March 2010
2010 Term:
Term: Main
Main factors
factors for
for fluctuation
fluctuation from
from
previous
previous year’s
year’s and
and projected
projected figures
figures
Both sales and operating incomes in production and entertainment media content businesses declined due to contraction of mass advertising market.
Broadcasting business performed steadily to increase sales and operating income.
・Production segment: Suffered a significant drop in SP business amidst market contraction. Both sales and operating income declined from previous year’s and
projected figures.
・Entertainment media content segment: Maintained sales roughly at the projected level. However, failed to reach the levels of operating income from previous year’s
and projected figures due to the poor showing of foreign movies and loss from devaluation.
･Broadcasting segment: Increased both sales and operating income from previous year’s and projected figures amidst continued market expansion.
vs. Previous Year
Net Sales
vs. Revised Projection
Operating Income
Unit: Million Yen
3/2009 Term
Results
Production
Business
Entertainment
Media Content
Business
Broadcasting
Business
Retail
Merchandising
/ Others
Eliminations
Change
3/2010 Term
Results
-
68,132
6,537
-6,690
-738
+280
+415
-635
-
-
Net Sales
Operating Income
Unit: Million Yen
3/2010 Term
Revised Projection
62,552
4,041
Production
Business
-611
-112
-2,510
Entertainment
Media Content
Business
-714
-611
+181
Broadcasting
Business
+298
+156
+57
Retail
Merchandising
/ Others
-594
+246
-7,223
-2,764
60,908
3,772
Eliminations
Change
3/2010 Term
Results
-
-211
-
+62
-406
+235
-1,644
-268
60,908
3,772
6
Production Business: March 2010 Term Results
Consolidated
Continued contraction of the mass advertising market dealt a serious blow to advertising production, sales promotion and post-production.
Reinforcing intra-group subcontracting and reducing material costs / SGA to improve profitability and maintain / raise the ratio of operating income.
Unit: Million Yen
18.0%18.0%
16.9%
6,612
6,724
7,351
8,102
3,798
3,686
4,160
10%
▲112【-1.7%】
5%
2,000
‘07
‘08
‘09
‘10
‘10
3/
3/
3/
3/
3/
[Projection][Results]
43,380
Revised
projection
37,302
-3,664
+233
Sales
promotion
-1,548
-452
Post
production
+287
-81
Other / offset
-1,764
-310
Fluctuation
-6,690
-611
0%
‘07
‘08
‘09
‘10
‘10
3/
3/
3/
3/
3/
[Projection][Results]
36,690
＞Advertising Production
・Major clients remain selective / restraint in advertising campaigns.
・Both sales and operating income declined from last year. (however on par
with projection)
・Improving profitability through reducing costs / SGA and reinforcing
intra-Group subcontracting.
・Demand showed a recovery in 4Q but remain murky outlook for future trend.
＞Sales Promotion
・Seriously affected by scale-down of campaigns in automotive / beverage
sectors.
・Continued reinforcement of intra-group subcontracting by advertising
agencies. (reduced demand for outsourcing)
・Strengthening the internal system and expertise in each segment to
implement fundamental reform of the profit-generating structure.
2,925
2,925
3,859
3,942
0
3,158
17,057
17,057
22,613
21,897
19,174
1,000
0
vs. Revised Projection
Advertising
production
Actual
3,491
▲738【-10.1%】
4,247
4,000
Previous
year’s result
15%
6,000
3,000
▲611【-1.6%】
10,000
5,000
19,632
▲6,690【-15.4%】
15,000
17.5%
5,000
20,244
20,000
7,000
7,406
36,690
20,767
24,487
23,978
30,000
25,000
20%
8,000
37,302
35,000
vs. Previous Year
Unit: Million Yen
10,000
9,00017.2%
43,380
43,153
40,000
46,385
50,000
45,000
Sales Overview of Sub-Segments
Operating Income
Net Sales
＞Post Production
・Continued market contraction and unit price reduction in both advertising
and post production segments.
・Steady expansion of movie / CGI / filming segments.
7
Consolidated
Entertainment
Entertainment Media
Media Content
Content Business:
Business: March
March 2010
2010 Term
Term Results
Results
Touch market conditions for terrestrial broadcasters reduced operating income from last year’s and projected figures, although sales results met projection.
Poor performance of foreign movies resulted in reduced sales / operating income from projection in cinema distribution / DVD package segments,
while the character business making positive results.
Net Sales
5,377
2,000
2,500
】
+280 +2.8%
0
3,500
593
593
4,764
4,764
5,824
First
Half
5,436
2,000
4,164
▲714【-6.6%】
▲2510
▲611
[Projection] [Results]
-3,219
-401
+227
-119
-48
-44
(Eliminations)
-816
-45
Change
-714
-611
Results
10,142
-3,830
＞TV Distribution
・Terrestrial broadcasters’ continued cut-back on programming spending led to
reduced purchase of foreign movies.
・Continued positive sales of overseas dramas / movies to CS channels.
・Achieving sales as projected, but suffering negative operating income due to
inventory devaluation.
＞Content Rights Management Business
・Continued poor performance of foreign movies resulting in the failure to meet
sales budget for cinema-release movies.
・Achieving solid performance in the Character segment with “Yamato” and
“GARO” .
4,000
‘07
‘08
‘09
‘10
‘10
3/
3/
3/
3/
3/
10,856
-76
Other
△3,830
Full year
3,000
△3,651
6,091
5,697
【
4,000
Projection
Contents Rights
△2,709
10,142
9,861
10,856
1,500
8,844
7,203
8,000
△
△3,219
12,640
Second
Half
△
TV Distribution
1,000
10,000
6,000
△
△1,320
14,669
500
△
502
△
Full year
2,582
2,361
0
First Half
12,000
Factors Fluctuation from Projection
Net Sales
Operating Income
Unit: Million Yen
Unit: Million Yen
16,000
14,000
Overview of SubSub-Segments
Operating Income
‘07
‘08
‘09
‘10
‘10
3/
3/
3/
3/
3/
[Projection] [Results]
＞Dubbing / Subtitling, Other
Achieving results generally according to projection.
8
Consolidated
Broadcasting Business March 2010 Term Results
Market expansion of ＣＡＴＶ・e2・ＩＰＴＶ increased sales and operating income.
Solid performance of contracted work and program sales boosted sales and operating income from previous year’s and projected figures
despite heavy initial capital investment to accommodate High-Definition technology and reinforce programming.
Net Sales
Overview of Sub-Segments
Operating Income
Unit: Million Yen
Unit: Million Yen
4,000
12,000
35%
Ｆａｍｉｌｙ Theater, Playboy Channel Japan, Classica Japan
31.2%
10,432
10,315
30%
26.6%
26.3%
25.6%25.6%
Full
】
1,631
1,000
【
2,000
】
1,318
957
1,416
5,265
5,265
4,544
4,984
[Projection] [Results]
0
2,826
1,329
1,173
】
15%
10%
】
+156 +5.9%
500
First Half
‘07
‘08
‘09
‘10
‘10
3/
3/
3/
3/
3/
2,670
2,645
【
+181 +6.9%
【
+298 +2.9%
First HAlf
20%
5%
‘07
‘08
‘09
‘10
‘10
3/
3/
3/
3/
3/
[Projection] [Results]
・
＞Channels Subject to Consolidation
・Family Theater is steadily increasing subscription, achieving higher sales
and operating income than projected.
Carrying-over of major programs into next fiscal year presenting a factor for
increasing operating income by ¥0.1 billion.
Pay channels cutting back on costs amidst tight market conditions.
Acquisition of Igo Shogi Channel in December (incorporated into consolidated
results from 4/2010).
・
・
＞Contracted Work
・Year-round contribution of Shochiku-affiliated 7chs transmission contract.
・Steady performance of program production, transmission, editing and sales
subcontracting boosting sales and operating income despite increased burden
of capital investments for High-Definition technology.
1,496
【
+415 +4.0%
1,496
1,500
4,000
4,403
】
The specialized multi-channel broadcasting market continues to expand, led by
digital CATV IPTV.
Second Half
1,326
2,000
1,421
5,167
5,330
5,179
4,687
5,466
Second Half
0
・Programming, sales promotion, marketing / Channels sales to cable operators
and hotels / Ad sales operations / Program production / Broadcasting preparation
/ Transmission work etc.
Program sales
25%
2,500
6,000
【Contracted work】
【
3,000 Year
2,588
9,724
3,500
2,838
8,000
9,090
10,000
10,731
Full Year
TFC Broadcasting Business Sub-segments
【Channels subject to consolidation】
0%
＞Program Sales
Steady performance contributing to increased sales and operating income.
9
March 2011 Term Business Projection
10
Consolidated
March
March 2011
2011 Full
Full Year
Year Business
Business Projection
Projection (Consolidated)
(Consolidated)
Budget compiled on the premise of murky outlook for the mass advertising market and continued trend of spending cut-backs
The overall rate of operating income expected to improve due to enhanced profitability of existing segments and reduced amortization
burden in the entertainment content business.
Net Sales ¥61.0 billion(+0.1% YOY) ・ Operating Income ¥4.0 billion(+8.1% YOY)
Ordinary Income ¥4.5 billion(+10.1% YOY) ・ Net Income ¥1.9 billion(+47.0% YOY)
March 2011 Business Forecast
Full Year Projection
1st Half
2nd Half
Net Sales
30,116
30,883
61,000
【+0.1%】
】
Operating Income
1,427
2,650
4,077
【+8.1%】
】
Operating Income Ratio to Net Sales
4.7%
8.6%
Ordinary Income
1,608
2,886
Ordinary Income Ratio to Net Sales
5.3%
9.4%
Net Income
672
1,240
Net Income Ratio
2.2%
4.0%
Unit: Million Yen
YOY
+91
+304
6.7% (+0.5%)
4,495
+412
【+10.1%】
】
7.4% (+0.7%)
1,912
+611
【+47.0%】
】
3.1% (+0.9%)
11
Production Business Forecast for the March 2011 Term
Consolidated
Projected for March 2011 Term: Net Sales ¥35.0 billion( -4.6% YOY) Operating Income ¥6.5 billion( -1.6% YOY)
Aiming at 18.6% in the rate of operating income through profitability enhancement in advertising production, sales promotion and post production despite tough market
conditions. Post-production aiming to reinforce its growth fields. (Shifting from post-production to comprehensive digital production, covering filming, editing and finishing）
Operating Income
▲1,684【
【-4.6%】
】
10,000
15,000
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
9,169
9,357
9,070
7,000
7,533
7,229
6,000
Unit: Million Yen
9,039
8,000
8,273
8,000
8,061
9,000
6,000
5,985
▲999(-4.1%】
▲503(-8.4%】
10,000
5,000
4,000
4,000
3,000
3,000
2,000
2,000
1,000
1,000
▲188(-2.0%】
5%
▲106【
【-1.6%】
】
2,000
5,000
3,021
2,925
3,859
3,942
1,000
3,158
16,934
17,057
22,613
21,897
19,174
0
9,000
5,000
First Half
5,000
10,000
7,000
23,551
20,000
Post Production
10,000
5,482
3,484
29,892
6,505
6,612
25,000
10%
3,686
3,000
15,000
30,000
6,612
7,351
7,4068,102
15%
3,491
4,247
18,071
4,000
Sales Promotion
35,000
4,160
6,000
6,477 7,406
35,006
20,767
24,487
7,000
5,000
19,632
20,000
23,978
25,000
Advertising
Production
17.5%
16.9%
17.2%
9,000
8,000
30,000 Second Half
Overview of Net Sales by Sub-Segment
20%
Full Year
36,690
35,000
18.6%
18.0%
24,550
Full Year
43,380
46,385
46,385
40,000
43,153
45,000
Unit: Million Yen
10,000
28,215
Unit:: Million Yen
50,000
31,504
Net Sales
0
0
3/
0%
0
0
‘07
‘08
‘09
‘10
’11
3/
3/
3/
3/
[Projected]
‘11
‘07
‘08
‘09
‘10
3/
3/
3/
3/
3/
[Projected]
‘10
‘11
‘07
‘08
‘09
3/
3/
3/
3/
3/
[Projected]
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
12
Synergic
Synergic Effect
Effect of
of the
the Digital
Digital Production
Production // Exploitation
Exploitation Rights
Rights and
and Broadcasting
Broadcasting Businesses
Businesses
Exploring intra-group synergy for the entertainment content and broadcasting businesses based
on the capacity for cutting-edge digital production
“Yamato: Rebirth”
3D movie “GARO”
To be released in Fall 2010
Released on 12/12/2009
Digital Production
(Post Production)
Exploitation Rights / Broadcasting
Providing value-added solutions in
high-end video production
Use CGI and other production capabilities to address
diversified client needs.
Digital Production Labo.
Combined delivery
Filming
(analog)
Organizational
integration
Filming
(digital)
Linear editing
ＣＧＩ
Recording
High-end editing
non-linear
（
）
３D production
Securing profits with focus on contents
that TFC has rights for
・Making more active use of characters with
TFC copyrights, and expanding profitability.
・Arranging tie-in and reinforcing programming
on TFC’s own CS channels.
Combining solutions＋
solutions＋Expanding added values
Capturing a greater share of the market for
high-end video production, e.g. movies.
Ensuring the profitability of the exploitation rights business
and utilizing such contents in broadcasting.
13
Consolidated
Entertainment
Entertainment Media
Media Content
Content Business
Business Forecast
Forecast for
for the
the March
March 2011
2011 Term
Term
The segment is projected to achieve the full-term net sales of ¥10.3 billion ( +¥0.1 billion YOY)
and operating income of –¥2.9 billion ( +¥0.9 billion YOY).
Net Sales
4,000
+279
-90
-95
-2
(Eliminations)
+133
+35
Change
+168
+916
△1,587
Contents Rights
Other
3/2011 Term Projections
10,310
-2,914
5,358
4,764
4,164
5,824
5,436
3,500
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
△3,830
2,000
△3,651
3,000
+168【
【+1.7%】
】
0
+973
△2,914
2,500
-3,830
+916
△2,709
4,951
5,377
5,697
8,844
7,203
6,000
△593
△1,320
△2,582
2,000
,
10,310
8,000
10,142
9,861
1,500
△2,361
10,000
10,142
-148
TV Distribution
1,000
12,640
12,000
3/2010 Term Results
500
14,669
14,000
Factors for Fluctuation from Previous Year
Net Sales
Operating Income
Unit: Million Yen
0
△502
Unit: Million Yen
16,000
Overview of Sub-Segments
Operating Income
4,000
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected
」
14
Consolidated
TV
TV Distribution
Distribution Business
Business (sub-segment)
(sub-segment) Forecast
Forecast for
for the
the March
March 2011
2011 Term
Term
March 2011 Term：
： ¥4.5 billion in net sales ( ‐¥0.15 billion YOY)・
・ ‐¥3.9 billion in operating income ( +¥1 billion YOY)
Continued sales reduction for terrestrial broadcasters contracting this segment to account for 14.3% of program sales and 20.5% of TV distribution business in
March 2011 Term.
TV Distribution Business
Net Sales
Operating Income
8,439
951
1,264
500
2,440
0
9,000
140
1,928
Unit: Million Yen
2,890
Unit: Million Yen
8,000
The sales share of TFC TV distribution business
to terrestrial broadcasters
△ △ △ △ △
77.8%
49.9%
54.5%
39.5%
28.9%
20.5%
Unit: Billion Yen
Solid line: Ratio
100%
90%
120
80%
1,000
△2,038
7,000
1,500
6,000
5,883
3,500
▲148【
【-3.2%】
】
4.6
4.6
60
2.9
2.9
40
Terrestrial
commercial
40%
broadcaster
(TV distribution business)
1.8
1.8
1.3
1.3
0.9
0.9
3.3
BS/CS, etc.
3.6 (TV distribution
10%business)
3/'11
[Projection]
2.8
3/'10
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
3.8
3/'09
0
5,000
2.9
3/'08
2.7
3/'07
[Projection]
20
3/'01
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
30%
20%
△4,910
2,799
2,156
1,689
2,711
4,500
2,441
50%
4,000
1,000
0
9.4
9.4
△3,936
3,000
2,000
60%
△3,323
3,000
△3,640
4,528
4,000
4,677
2,500
70%
80
+973
4,654
5,000
2,000
100
0%
15
Consolidated
5-year plan for the revenues and inventories of entertainment content exploitation rights
Amortizing titles for terrestrial broadcasting to achieve a profitable structure, and adjusting
inventory to suit the needs of the expanding CS market
Projection
Unit: Billion Yen
15 13.9
TV Distribution Business
Net Sales
Operating Income
11.8
1. Sales projection revised from the
figures announced in 11/2009
Terrestrial ‐¥0.3 to ‐¥0.4 billion per year
ＣＳ・ＢＳ +¥0.3 to +¥0.5 billion per year
Net Sales
8.4
10
5.8
Initially planned level
4.6
4.6
4.5
3.8
5
4.2
Net sales
Operating income
¥7-8
¥7-8billion
billion
3.2
3.6
3.2
3.2
2.9
0
0
0
-1.2
0
Operating
Income
Unit: Billion Yen
25
3/‘05
-2.9
-2.0
-3.6
-3.3
-3.7
-2.8
3/‘06
3/‘07
24.3
21.6
3/‘08
Inventories of the
entertainment content
exploitation rights
16.2
22.1
3/‘09
3/‘10
16.7
3/‘11
3/‘13
Exploitation rights total
19.0
10
13.3
11.0
13.9
13.9
TV distribution
rights for
entertainment contents
14.6
3/‘14
3. Reinforcing procurement suitable for CS in
response to the positive performance of the
CS market, and ensuring a certain level of
inventory for such contents.
14.8
9.3
11.3
0
¥3
¥3billion
billion
2. Anticipating the operating loss of ¥1.1 billion
in the March 2013 term due to slow sales to
terrestrial broadcasters.
ＴＶ distribution rights
15.9
19.0
3/‘12
Initially-planned level
Others (broadcasting /
rights management)
exploitation rights
20
5
0
-1.1
Currently
Currently
projected
projectedsales
sales
-3.9
21.5
15
-4.9
-2.8
Originally
Originally
projected
projectedsales
sales
9.3
12.7
11.5
9.2
8.6
8.4
7.7
6.4
5.7
7.5
7.1
5.1
6.8
16
Broadcasting
Broadcasting Operation
Operation Business
Business Forecast
Forecast for
for the
the March
March 2011
2011 Term
Term
Consolidated
Continued expansion of HD services and proliferation to households
Adaptation to High-Definition and reinforcing programming to make advance investment and improve market positioning
Net Sales
Operating Income
Unit: Million Yen
14,000
Unit: Million Yen
4,000
35%
31.2%
12,182
1,329
1,326
20%
1,265
1,000
18.6%
2,261
2,826
2,645
2,588
2,000
1,500
+1,451【
【+13.5%】
】
2,838
2,500
1,421
10,315
3,000
25%
6,188
5,466
5,179
26.6%
26.3%
25.6%
1,631
4,000
5,330
9,724
9,090
4,687
6,000
10,731
30%
10,000
8,000
※Family Theater
3,500
12,000
15%
10%
▲565【
【-20.0%】
】
2,000
5%
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
995
1,496
1,318
957
0
1,416
5,993
5,265
4,984
4,544
500
4,403
0
Initial
Initial investment
investment phase
phase amidst
amidst market
market expansion
expansion
Introducing
Introducing HD
HD and
and reinforcing
reinforcing programming
programming
0%
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
・Cost increase due to the delay of titles originally scheduled
for last year ( ‐¥0.1 billion).
＋ Special budget for overhauling the programming lineup
( ‐¥0.2 billion).
(Strengthening external acquisition of Anime / drama / variety shows.)
＞Channels subject to consolidation
・ Pay channels: Contraction of the SkyperfecTV 124/8 market causing
continued drop in sales and operating income.
・ Anticipating HD introduction to Playboy Channel in mid-term
( ‐¥0.1 billion in operating income).
・ Inclusion of Igo Shogi Channel into consolidation offering a factor for
increased sales / operating income.
( +¥1.2 billion in net sales / +¥0.1billion in operating income)
＞Commissioned work
Envisaging solid performance in both HD transmission / editing and
service canvassing.
＞Program sales
Inventory adjustment on the part of broadcasters expected to cause
negative performance compared to the previous term, which enjoyed
good sales of overseas drama, etc. ( ‐¥0.2 billion in operating income)
17
Consolidated
March
March 2011
2011 Term
Term Full-Year
Full-Year Business
Business Forecast
Forecast (Summary
(Summary by
by Segment)
Segment)
Production: Reduced sales while securing profitability ／ Entertainment media content：
： Profitability improvement through
exploitation rights amortization ／ Broadcasting：
：Increasing initial investments
Fluctuation from previous year
Operating Income
Net Sales
Net Sales
YOY
Unit: Million Yen
Production
Business
54.0%
35,006
-1,684
Entertainment Media
Content Business
15.9%
10,310
+168
Content Rights
Management
★Before deletion w/in segments
Broadcasting
Business
18.8%
Retail
Merchand
-ising
11.3%
＋ Others
Total
Total
after eliminations
【-4.6%】
】
【+1.7%】
】
4,528
3,123
TV Distribution
100.0%
6,505
-2,914
-106
【-1.6%】
】
+916
【－】
-148
+279
-3,936
-51
+973
12,182 【+1,451
+13.5%】
】
2,261
-565
-9
265
【
7,316
】
【-0.1%】
】
64,815
61,000
Operating Income
YOY
-90
【-20.0%】
】
-15
【-5.4%】
】
Off-set
6,117
+91
【+0.1%】
】
4,077
+304
【+8.1%】
】
18
Attachments
Advertising-related indicators: Group inventories
(Unit: Title)
250
200
150
100
50
0
3/ ’08 term
3/ ’09 term
3/ ’10 term
3/ ’11 term
May
Apr
166
169
199
193
168
195
176
162
Jun
208
198
174
Jul
193
203
157
Aug
194
185
168
Sep
172
174
169
Oct
198
169
172
Nov
212
182
179
Dec
199
194
184
Jan
210
177
174
Feb
212
174
178
Mar
184
165
187
20
Production
Production Business:
Business: Advertising
Advertising Production-related
Production-related Indicators
Indicators
Sales Ranking
Major Television Advertising Awards Share
(FY2008)
（FY2009）
CM production cost: 195.9 billion yen
(Unit: Title)
(Unit: Billion Yen)
0
100
200
TFC Group’s 3
Companies in Total
300
Market share
(+0.1%)
TFC Group’s 3
Companies in Total
9.8%
(+0.1%)
Tohokushinsha
6.4%
(+0.1%)
4.3%
(+0.5%)
27.5 14.0%
Tohokushinsha
19.3
Company A
12.6
Company B
8.4
0
10
20
34 20.4%
30
(Unreleased)
5.7
5.3
Company D
Nibankohboh
-
18.%
Company a
16
9.6%
Company b
16
9.6%
14
Company c
Company C
30
-
8.4%
11
Company d
6.6%
2.9%
(+0.3%)
Company e
2.7%
(+0.2%)
Company f
5
Nibankohboh
2
Company g
5
Lift
2
Company h
5
Nitten Alti
2.8
1.5%
(-0.2%)
Company E
2.7
1.4%
(-0.1%)
Company F
2.6
1.3%
(+0.1%)
Company G
2.4
1.2%
(+0.0%)
“Kokoku-to Keizai”
9
5.4%
3.0%
3.0%
3.0%
Company i
4
2.4%
Company j
4
2.4%
Company k
4
2.4%
Source: “Kokoku Dairi-gyo-no Gensei」
21
Consolidated
Broadcasting
Broadcasting (CS,
(CS, CATV):
CATV): Market
Market Environment
Environment
Group channels: Transition of total subscription
Subscription to Group channels topping 30 million
Continuing expansion buoyed by the digitization of CATV and increase of IPTV subscription
3,090
Unit: 10,000 subscribers
3,500
Pay Channels
565
349
566
History Channel
739
791
Super Drama ＴＶ
538
600
651
702
730
Family Theater
3/’03
3/’04
3/’05
3/’06
3/’07
3/’08
3/’09
3/’10
ファミリー劇場
638
537
492 127
688
1,876
440 99
1,630
381 35
ヒストリーチャンネル
575
1,439
315 543
1,254
263 496
247-
419
500
436
1,000
369
1,500
1,126
2,000
303
The Cinema
2,500
2,056
Igo Shogi Channel
482
Expansion at an annual rate of over 10%
2,376
3,000
5 basic channels
total
30 million
subscribers
(as of 3/2010)
-
22
Entertainment
Entertainment Media
Media Content
Content BusinessBusiness- Exploitation
Exploitation Rights
Rights Business
Business March
March 2011
2011 Term
Term Forecast
Forecast
(Unit:Million Yen)
Net Sales
Operating Income
500
3,500
1,755
△ 481
500
1,500
△
△ 401
△
2,000
157
△
444
△
△51
172
0
63
55
38
3,123
2,843
2,500
2,816
3,000
3,148
△90
+279【+9.8%】
】
1,000
△ 1,077
1,000
1,179
693
771
0
1,420
500
1,037
Consolidated
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
1,500
[Projected]
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
23
Consolidated
Content
Content Rights
Rights Management
Management Business:
Business: Titles
Titles Completed
Completed or
or Development
Development // Production
Production
Title
Planned Development for Mid-Term Plan
Description
Primary use
3/10 term: H2
(cinema release)
Secondary use
3/11 term: H1
(DVD release)
3/11 term: H2
(cinema release)
3/12 term: H1
(DVD release)
GARO
3/06 term: H2
(TV release)
3/07 term: H1
(DVD release)
GARO Special Byakuya-no Maju
3/07 term: H2
(TV release)
3/12 term: H1
(DVD release)
3/07 term: H2
(DVD release)
Special program commemorating the 10th anniversary of Family Theater. A special edition of GARO, written and
directed by Keita Amemiya, which enjoyed strong popularity with high-quality action and VFX.
A DVD-only spin-off of the 2005 TV series “GARO”, featuring Kiva
Masakiku Araba
3/10 term: H2
(cinema release)
3/11 term: H2
(DVD release)
A story of forbidden love between a convicted murderer on death row and the victim's former girlfriend. Directed by
Kaito Okachimachi and music by Naotaro Moriyama.
Features Hiroyuki Kubota and Machiko Ono.
Yajima Biyoshitsu The Movie: Yume -wo Tsukama
Nevada
3/11 term: H1
(cinema release)
3/11 term: H2
(DVD release)
A musical film featuring the popular performance unit “Yajima Biyoshitsu ” (two Tunnels members and DJ OZMA),
which made a CD debut in September 2008 after gaining popularity in Fuji Television variety show “Tunnels
-no
Minasan-no Okage Deshita”. Directed by TFC executive director Nobuya Nakajima.
3/11 term: H2
(cinema release)
3/12 term: H1
(DVD release)
Bakamono
3/11 term: H2
(cinema release)
3/12 term: H1
(DVD release)
The SF/X drama “GARO”, which portrays a darker version of the typical children’s hero tale, returns as a feature film,
enhanced with the latest 3D technology by Omnibus Japan. Directed by Keita Amemiya, who directed the original
“GARO.”
A love story showing the gentle relationship between an easygoing college student and a strong -willed older woman
over the span of 10 years. Based on the book by Akutagawa prize
-winning author Akiko I toyama. Features Yuki
Uchida and Hiroki Narimiya.
Space Battleship Yamato
3/11 term: H2
(cinema release)
3/12 term: H1
(DVD release)
Shine a Light
3/09 term: H2
(cinema release)
3/10 term: H1
(DVD release)
Chocolate
3/10 term: H1
(cinema release)
3/10 term: H2
(cinema release)
3/10 term: H1
(DVD release)
3/11 term: H1
(DVD release)
Rudo y Cursi
3/10 term: H2
(cinema release)
3/11 term: H1
(DVD release)
The Girlfriend Experience
3/11 term: H1
(cinema release)
3/11 term: H2
(DVD release)
Experimental film, shot with HD camera by the Academy Award winning director Steven Soderbergh
The Vintner’s Luck
3/11 term: H2
(cinema release)
3/12 term: H1
(cinema release)
3/12 term: H1
(DVD release)
3/12 term: H1
(DVD release)
Portraying people who are trying to produce the ultimate wine with a help from an angel, set in the 19th century
Bourgogne. Directed by Niki Caro, the director of “Whale Rider”.
Movie adaptation of the Shakespeare’s romance of the same title, featuring the Academy Award winning actress
Helen Mirren (“The Queen”). An ambitious attempt by the gifted producer Julie Taymor, changing the gender of the
main character in this adaptation.
3/12 term: H1
(cinema release)
3/12 term: H2
(DVD release)
Yamato: Rebirth
Animation
Red Line (cinema version)
TV Series
Original productions
Masked Rider Kiva
Movies
Garo Red Requiem (3D Cinema Version)
The Burning Plain
Acquired titles
The Tempest
Somewhere
Animation movie for theatrical release, portraying what happens 17 years after “Final Yamato.” Space Battleship
Yamato is resurrected to save humanity from an unknown terror. CG production by Omnibus Japan.
First full- length feature film by director Takeshi Koike, director of the “World Record” short from “The Animatrix World
Record.” Original script by Katsuhito Ishii (“Samehada Otoko -to Momojiri Onna”), and animation production by Mad
House (“Toki -o Kakeru Shojo”). Containing an unprecedented 1,500 scenes and 100,000 cells depicting an
anything-goes car race to be crowned the best driver in the universe.
Written and directed by Keita Amemiya. Hyper midnight action drama, featuring extensive use of VFX
Use of latest CGI & wire action, produced by Tohokushinsha and Omnibus Japan.
3/11 term: H1
(TV release)
3/11 term: H1
(TV release)
3/11 term: H2
(TV release)
Long-awaited live-action adaptation of “Space Battleship Yamato”, a TV anime series of national popularity that has
been loved for the last 36 years. An ambitious project that has been attempted by many other directors with no
success but has finally eventuated with Takuya Kimura playing the lead character
A live music entertainment film featuring the Rolling Stones
An action-filled Thai movie featuring Hiroshi Abe
A drama movie featuring two Academy Award winning actresses, Charlize Theron and Kim Basinger. Entrant of the
international competition of the Venice International Film Festival in 2008
The first production by the new ChaChaCha! studio, established by the directors of Harry Potter and the Prisoner of
Azkaban” and “Babel”. A comedy drama about the relationship of soccer -playing half-brothers
The latest offering of Sofia Coppola, who also directed “Lost in Translation” and “Mary Antoinette”
24
Consolidated
Retail Merchandising Business
Other Business (Education)
★The figures are before off-set within the segment
Net Sales
Operating Income
Unit: Million Yen
3/2010 results：
：
Unit: Million Yen
Net Sales ¥7.3 billion / Operating Income ¥0.28 billion
600
4.2%
400
461
7,316
6,000
3.8%
3.6%
4%
2.8%
338
5,000
280
4,000
3%
-15【
【-5.4%】
】
108
0%
0
0
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
2%
1%
87
288
3,552
3,567
3,985
3,921
4,118
100
107
2,000
223
200
-10【
【-0.1%】
】
180
3,000
265
300
1,000
3/2011 projection:
5%
500
7,326
7,962
7,000
6%
5.5%
Net Sales ¥7.3 billion / Operating Income ¥0.26 billion
8,120
8,000
8,407
9,000
‘07
‘08
‘09
‘10
‘11
3/
3/
3/
3/
3/
[Projected]
25
Glossary
Postproduction
The finishing process after shooting video materials (pre-production), e.g. processing and editing video/ audio to turn it into a completed product. Postproduction
represents processing / editing video, and adding voice/ music / sound effects. It requires highly value-added operation know-how using high-performance equipment,
including computer graphics and HD (high definition) compatibility. Tohokushinsha / Omnibus Japan has always led the industry in introducing cutting-edge equipment,
and developing / accumulating innovative visual technologies/ know-how, yielding an overwhelming impact on the industry.
Producers
People who oversee each advertising production/movie planning and production. Producers have the responsibility and authority in each project’s profitability and overall
quality, covering aspects ranging from project promotion/commissioning to external negotiations, budget management and staff recruitment.
Tohokushinsha is the advertising production industry’s pioneer in adopting the “Producer system”, leading others in production quality and cost management know-how.
Directors (planning / direction)
People who direct and produce advertising production and movie projects. Directors have responsibility and authority in production quality. Tohokushinsha overwhelms
competitors in having outstanding directors / planners under contract, such as Shinya Nakajima (winner of 1993 Grand - Prix at Cannes Lions International Advertising
Festival).
Output deal
One of the formats in entertainment content rights license agreements (distribution rights). An output deal buys the distribution rights of all movies and TV programs which a specific movie studio
produces during a set period of time, as well as rights for specified library titles. The term of such an agreement is generally for 3 to 5 years. In the case of first-run movies, the cost (purchase
price) slides according to their box-office earnings in Japan. An output deal may have an optional agreement (e.g. agreement of extending the term of contract) attached.
Package deal
One of the formats in entertainment content rights license agreements. A package deal packages a main title produced by a specific movie studio together with other movies / programs in
acquiring entertainment content rights. The content, scale and term of such a package is determined in negotiations between the licensee (distribution company) and licensor (movie / program
production company).
Start date of subsub-licensing period
Date from when a certain title can be broadcast, as stipulated in an agreement between a TV station and a distributor in the TV distribution business. A TV station/ channel cannot broadcast
the title before this date, but may put it on air anytime after the date within a specified period of time. In other words, the actual broadcasting date is after the sub-licensing start date and within
the specified period of time.
Baseband
In TV broadcasting, “baseband” signifies assembling programs/ video titles/ commercials, accumulated in VTR or a video server, according to program schedule, and making a real-time
feeding in a form of broadcasting signals. Tohokushinsha conducts baseband for all related channels at its Satellite Transmission Center
UpUp-link
Transforming broadcasting signals to electromagnetic waves, and uplinking them to satellite.
Basic channels / pay channels
Basic channels are channels provided as part of the basic package in CATV services, etc. TFC Group channels include Super Channel, Family Theater, History Channel, THE CINEMA and
Igo Shogi Channel (*Provided as part of the basic package at Sky PerfecTV!, rather than part of the Must-Buy package sales.) For pay channels, viewers are required for a subscription
contract separate from the basic package. TFC’s affiliated pay channels include Star Channel, Classica Japan, and Playboy Channel.
26
About future projections
In this material, performance projection figures have been calculated based on judgments
and assumptions made with currently available information. Actual figures and results may
differ from projections due to uncertain factors in such judgments/assumptions, and
variability of future business administration and domestic/overseas situations.
Please also note that this material has been compiled to promote understanding on
Tohokushinsha, and is not aimed at soliciting investment in this company.
TFC shall not be held liable for any disadvantage or damage arising from information carried
in this material.
27