FUJI MEDIA HOLDINGS, INC. November 4, 2015 Fuji Media Holdings, Inc.
These materials are an English translation of the original document in Japanese. The Company's performance forecasts and other information are based on the Company's understanding as of the time the earnings presentation materials were prepared.
These materials may contain information about financial targets, forecasts, and other forward looking statements regarding Fuji Media Holdings, Inc., its affiliates, and investees. Actual results may differ substantially due to a variety of factors, including changes in business management, economic conditions, financial markets, and other circumstances.
"FY15" means the fiscal year ending March 31, 2016.
The period from April 1, 2015 to September 30, 2015 is referred to as "1H." The period from July 1, 2015 to September 30, 2015 is referred to as "2Q."
Production
(83)
＋1,071
Life
Urban
development
Advertising
Other
(115)
(28)
Decrease
information
(220)
Consolidated operating income of ¥4.9 billion; Down sharply on Fuji TV results
Operating income YoY
Increase
Broadcasting
＋156
Video and
music
(5,199)
Millions of yen
Life Information
Fuji TV
Sharp decline in broadcast revenues led to operating loss, despite tightened cost controls
Substantial improvement for Cecile business
Dinos business remains firm on TV shopping
Urban Development
Video and Music
Revenue down on lack of major releases for package products
Expansion in non-package revenue, including streaming, live performances, and direct sales at live performances, online and through other channels
Large contribution from newly consolidated GRANVISTA hotel/leisure facilities
Residential sales and office building leasing results firm, earnings decline on rebound from asset sales in the previous fiscal year
1H FY15 Business ResultsMillions of yen
Consolidated
1H FY15
1H FY14
YoY
Previous forecast
Change
Net Sales
311,736
306,641
1.7%
324,000
(3.8)%
Operating Income
4,905
9,518
(48.5)%
8,000
(38.7)%
Ordinary Income
8,170
17,334
(52.9)%
10,500
(22.2)%
Net Income Attributable to Owners of the Parent
5,079
12,161
(58.2)%
6,200
(18.1)%
Note: Ordinary income and net income for FY14 includes a gain on generation of negative goodwill (approx. ¥6.2 billion) when ITOCHU Fuji Partners, Inc. was made an equity-method affiliate.
Millions of yen
Fuji TV
1H FY15
1H FY14
YoY
Previous
forecast
Change
Net Sales
146,629
156,978
(6.6)%
154,800
(5.3)%
Operating Income
(1,016)
4,018
---
2,400
---
Ordinary Income
(203)
4,148
---
2,800
---
Net Income
(247)
2,478
---
1,600
---
1H FY15 Segment ResultsMajor Consolidated Subsidiaries
Advertising
Quaras*
Urban Development
Sankei Building, GRANVISTA Hotels & Resorts
Others
Fusosha Publishing, Fujimic, Nippon Broadcasting Project
Broadcasting
Net sales
Operating income Millions of yen
1H FY15
1H FY14
YoY
Previous forecast
Change
1H FY15
1H FY14
YoY
Previous forecast
Change
160,492
170,305
(5.8)%
169,000
(5.0)%
442
5,641
(92.2)%
4,100
(89.2)%
Production
26,494
25,082
5.6%
25,000
6.0%
1,442
1,285
12.2%
1,100
31.2%
Video and Music
23,862
27,699
(13.9)%
28,200
(15.4)%
(139)
(56)
---
400
---
Life Information
63,208
62,169
1.7%
63,200
0.0%
(478)
(1,550)
---
(1,100)
---
Advertising
19,899
21,400
(7.0)%
20,800
(4.3)%
108
224
(51.4)%
200
(45.5)%
Urban
Development
39,094
21,355
83.1%
37,800
3.4%
3,157
3,186
(0.9)%
2,900
8.9%
Other
12,892
12,992
(0.8)%
13,200
(2.3)%
272
493
(44.7)%
400
(31.8)%
Adjustment
(34,208)
(34,363)
---
(33,200)
---
100
294
---
0
---
Consolidated
311,736
306,641
1.7%
324,000
(3.8)%
4,905
9,518
(48.5)%
8,000
(38.7)%
Broadcasting
Fuji Television Network, Nippon Broadcasting System, Fuji Satellite Broadcasting (BS Fuji)
Production
Kyodo Television, Fuji Creative Corporation, Fuji Art
Video and Music
Pony Canyon, Fuji Pacific Music
Life Information
Dinos Cecile, Sankei Living Shimbun
*Quaras and Kyodo Advertising are merged in October 2014.
Highlights of Revision to FY15 Earnings Forecast
Consolidated full-year operating income forecast lowered to ¥21.3 billion
Revision to Full-Year Operating Income Forecast
(Comparison with Previous Forecast)
Raised
Broadcasting ±0
Video and
music
＋600
Advertising ＋700
Other
Production
Lowered
(200)
Life
information (100)
Urban
development
(100)
(9,800)
Millions of yen
Life Information
Fuji TV
Downward revision to broadcast revenue forecast
¥10 billion in cuts to 2H operating expenses
Upward revision to full-year forecasts on positive
catalogue sales
Cecile business 2H sales off to a positive start
Video and Music
Promising package products to be released in 2H
Earnings anticipated in non-package as well
Urban Development
Upward revision to forecasts on positive performance at Sankei Building and GRANVISTA
Considerable earnings expected in the development business in 2H
Consolidated | Revised Forecast | Previous Forecast | Change |
Net Sales | 644,000 | 670,000 | (26,000) |
Operating Income | 21,300 | 30,200 | (8,900) |
Ordinary Income | 27,300 | 35,200 | (7,900) |
Net Income Attributable to Owners of the Parent | 18,100 | 22,300 | (4,200) |
Millions of yen
Fuji TV | Revised Forecast | Previous Forecast | Change | ||
Net Sales | 287,000 | 311,300 | (24,300) | ||
Operating Income | 1,500 | 11,000 | (9,500) | ||
Ordinary Income | 2,700 | 11,900 | (9,200) | ||
Net Income YoY | 1,300 | 7,300 Previous Full-ye orecast Foreca | ar st | (6,000) | |
Previous Forecast | |||||
Network time | (10.3 | )% | |||
Local time | (8.2 | ||||
Millions of yen
Broadcasting | Fuji Television Network, Nippon Broadcasting System, Fuji Satellite Broadcasting (BS Fuji) |
Production | Kyodo Television, Fuji Creative Corporation, Fuji Art |
Video and Music | Pony Canyon, Fuji Pacific Music |
Life Information | Dinos Cecile, Sankei Living Shimbun |
Major Consolidated Subsidiaries
Advertising | Quaras* |
Urban Development | Sankei Building, GRANVISTA Hotels & Resorts |
Others | Fusosha Publishing, Fujimic, Nippon Broadcasting Project |
*Quaras and Kyodo Advertising are merged in October 2014.
Broadcasting | Net sales | Operating income | ||||
Revised forecast | Previous forecast | Change | Revised forecast | Previous forecast | Change | |
315,800 | 340,200 | (24,400) | 4,000 | 13,800 | (9,800) | |
Production | 50,400 | 50,700 | (300) | 2,500 | 2,500 | 0 |
Video and Music | 53,700 | 55,600 | (1,900) | 1,600 | 1,800 | (200) |
Life Information | 138,000 | 138,300 | (300) | 1,800 | 1,200 | 600 |
Advertising | 40,700 | 42,500 | (1,800) | 300 | 400 | (100) |
Urban Development | 84,400 | 82,100 | 2,300 | 10,200 | 9,500 | 700 |
Other | 26,600 | 27,100 | (500) | 700 | 800 | (100) |
Adjustment | (65,600) | (66,500) | --- | 200 | 200 | --- |
Consolidated | 644,000 | 670,000 | (26,000) | 21,300 | 30,200 | (8,900) |
Millions of yen
Dividend determined with consideration for stability, based on a target payout ratio of 40%
FY2015 Annual Dividends ¥40 (Revision: None)
Yen
50
40
44
40 40 40
36
30
20 1618
10
0
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
(Forecast)
Note: Fuji Media Holdings adopted the unit share system, and implemented a share split at the ratio of 100 shares for each share of common stock, effective October 1, 2013. Previous dividend figures have been calculated with the number of shares following the split.
Millions of yen
Broadcasting Business | 1H FY15 | 1H FY14 | YoY |
123,537 | 131,106 | (5.8)% | |
Broadcasting Revenues | 107,098 | 115,350 | (7.2)% |
Other Broadcasting Business Revenues | 16,438 | 15,755 | 4.3% |
Other Businesses | 23,092 | 25,872 | (10.7)% |
Total Net Sales | 146,629 | 156,978 | (6.6)% |
Cost of Sales (Broadcasting Business) | 88,004 | 89,483 | (1.7)% |
Cost of Sales (Other Businesses) | 19,802 | 22,351 | (11.4)% |
SG&A Expenses | 39,838 | 41,125 | (3.1)% |
Operating Income | (1,016) | 4,018 | --- |
Millions of yen
Network time | 2Q FY15 | YoY | 1H FY15 | YoY |
25,628 | (4.5)% | 49,681 | (8.5)% | |
Local time | 3,589 | (9.1)% | 6,940 | (7.1)% |
Spot | 22,916 | (6.7)% | 50,475 | (5.8)% |
Total broadcasting revenues | 52,134 | (5.8)% | 107,098 | (7.2)% |
Spot Advertising YoY Trend by Industry
July to Sept. 2015
*Administrative accounting base
Industry | Share | Last Year Share | YoY |
Telecommunication | 16.9% | 13.6% | 18.5% |
Cosmetic/Toiletries | 14.2% | 14.2% | (4.9)% |
Beverage (Non-Alcoholic) | 8.3% | 7.6% | 3.9% |
Entertainment | 7.7% | 7.1% | 2.3% |
Foods | 7.5% | 7.1% | 1.0% |
Fast Foods/Services | 6.6% | 6.1% | 2.9% |
Autos | 6.6% | 9.0% | (30.6)% |
Pharmaceuticals/ Medical Products | 5.8% | 5.0% | 10.7% |
Finance/Insurance | 4.6% | 5.0% | (12.9)% |
Industry | Share | Last Year Share | YoY |
Precision/Optical Equipment | 4.4% | 5.1% | (17.6)% |
Apparel/Accessories | 3.7% | 4.1% | (14.2)% |
Beverage (Alcoholic) | 3.7% | 4.2% | (16.8)% |
Distribution/Retail | 3.2% | 3.5% | (12.8)% |
Travel/Leisure | 3.0% | 3.4% | (17.2)% |
Real Estate/Housing | 2.5% | 2.2% | 8.6% |
Consumer Electronics | 0.9% | 1.1% | (25.6)% |
Energy/Machinery | 0.0% | 0.3% | --- |
Others | 0.4% | 1.3% | (69.2)% |
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