Fuji Media : Quarterly Flash Report Results for nine months ended December 31,2016

Flash Report [Japanese GAAP] (Consolidated Basis) Results for the nine months ended December 31, 2016

February 3, 2017

Company name: Fuji Media Holdings, Inc.

Stock listing: Tokyo Stock Exchange Code number: 4676 URL: http://www.fujimediahd.co.jp/en Representative: Shuji Kanoh, President and Chief Operating Officer

Person to contact: Junji Okunogi, Executive Officer, Treasury & Finance Telephone: [phone] (key)

Scheduled date of filing quarterly securities report: February 13, 2017 Scheduled date of commencing dividend payments: ―

Availability of supplementary briefing material on quarterly financial results: Available Schedule of quarterly financial results briefing session: No

1. Consolidated Financial Results
2. Business Performance

   (Figures less than ¥1 million have been omitted.)

   Nine Months ended December 31 Percentages indicate year-on-year increases/(decreases).

   Net sales	Operating income	Recurring profit	Net income attributable to owners of the parent
   Millions of yen %	Millions of yen %	Millions of yen %	Millions of yen %
   2016	488,672 3.1	20,201 44.5	26,649 34.9	22,550 65.0
   2015	473,806 1.7	13,976 (23.2)	19,750 (30.5)	13,663 (30.4)

   (Note) Comprehensive income: Nine months ended December 31, 2016: ¥34,072 million, 94.8%

   Nine months ended December 31, 2015: ¥17,487 million, (60.9)%

   Basic earnings per share	Diluted earnings per share
   Yen	Yen
   2016	97.53	―
   2015	59.08	―

3. Financial Position

4. Total assets	Net assets	Equity ratio
   Millions of yen	Millions of yen	%
   December 31, 2016	1,188,894	668,039	55.0
   March 31, 2016	1,136,406	638,383	55.4

   (Reference) Total shareholders' equity: December 31, 2016: ¥653,669 million, March 31, 2016: ¥629,785 million

5. Dividends

   Year ended March 31, 2016/ Year ending March 31, 2017

   Dividends per share
   1Q	2Q	3Q	Year-end	Total
   Yen	Yen	Yen	Yen	Yen
   2016 ―	20.00	―	20.00	40.00
   2017 ―	20.00	―
   2017 (Forecast)	20.00	40.00

   (Note) Revision to dividends forecast: None

6. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2017

   Percentages indicate year-on-year increases/(decreases).

   Net sales	Operating income	Recurring profit
   Millions of yen %	Millions of yen %	Millions of yen %
   Fiscal year	652,400 1.8	24,400 0.0	31,400 (3.1)

   Net income attributable to owners of the parent	Basic earnings per share
   Millions of yen %	Yen
   Fiscal year	25,100 9.9	108.57

   (Note) Revision to earnings forecast: Yes

   Notes:

7. Significant changes in subsidiaries (changes in specific subsidiaries involving a change in the scope of consolidation) during the subject period: None

   Additions: None Deletions: None

8. Adoption of special accounting treatment in preparing the quarterly consolidated financial statements: None

9. Changes in accounting policies, changes in accounting estimates, and modifications and restatements:

10. Changes in accounting policies based on revision of accounting standards: Yes

11. Changes in accounting policies other than 1) above: None

12. Changes in accounting estimates: None

13. Modifications and restatements: None

    (Note) Please refer to "2. MATTERS REGARDING SUMMARY INFORMATION (NOTES): Changes in Accounting Policies, Changes in Accounting Estimates, and Modifications and Restatements: Changes in Accounting Policies" on page 9.

14. Number of issued shares (Common stock)

15. Nine months ended December 31, 2016	Year ended March 31, 2016
    1) Number of issued shares (including treasury stock) at end of the period (shares)	236,429,800	236,429,800
    2) Number of treasury stock at end of the period (shares)	5,375,405	5,199,629
    Nine months ended December 31, 2015
    3) Average number of issued shares during the period (shares)	231,229,212	231,264,128

    Indication of quarterly review procedure implementation status

    This flash report is not subject to quarterly review procedures under the Financial Instruments and Exchange Act. The quarterly review procedures of financial statements in accordance with the Financial Instruments and Exchange Act have not been completed at the time of disclosure of this flash report.

    Explanation of appropriate use of forecasts of financial results; other important items

    The forward-looking statements made in this document, including the aforementioned forecasts, are based on all information available to the management at the time of this document's release and certain assumptions considered rational. Actual results may differ materially from the forecasts due to various factors in the future. Regarding the assumptions forming the forecast of financial results, please refer to "1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF THE FISCAL

    YEAR ENDING MARCH 31, 2017: (3) Explanation of Consolidated Financial Results Forecasts and Other Future Projections" on page 7.

    CONTENTS OF ATTACHMENT
16. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF THE FISCAL YEAR ENDING MARCH 31, 2017 4
17. Explanation of Business Results 4
18. Explanation of the Financial Position 7
19. Explanation of Consolidated Financial Results Forecasts and Other Future Projections 7
20. MATTERS REGARDING SUMMARY INFORMATION (NOTES) 9 Changes in Accounting Policies, Changes in Accounting Estimates, and Modifications and Restatements 9
21. CONSOLIDATED FINANCIAL STATEMENTS 10
22. Consolidated Balance Sheets 10
23. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 12
24. Notes to Consolidated Financial Statements 14
25. Segment Information 14
26. 1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF THE FISCAL YEAR ENDING MARCH 31, 2017 (1) Explanation of Business Results

    The Japanese government's Monthly Economic Report on the Japanese economy for the nine months ended December 31, 2016 (April 1, 2016 to December 31, 2016) states "Although improvement is delayed in some areas, the economy is on a moderate recovery track. With the continuing improvement trend of the employment and income situation, along with the effect of various government measures, the moderate recovery trend is expected to continue in the future. However, close attention must be paid to the impact of uncertainty in the economies outside Japan and fluctuations in financial and capital markets." The report also states that the business outlook of corporations "is moderately recovering."

    Amid this economic environment, the Fuji Media Holdings Group's consolidated net sales increased during the nine months ended December 31, 2016, up 3.1% from the same period of the previous fiscal year to ¥488,672 million, as increases in the Advertising, Urban Development and Other segments offset declines in the Broadcasting, Production, Video and Music, and Life Information segments.

    In terms of earnings, operating income amounted to ¥20,201 million, up 44.5% year-on-year, because while declines in the Production, Advertising and Other segments and an operating loss of the Video and Music segment were recorded, the mainstay Broadcasting, Life Information and Urban Development segments recorded increased income. Recurring profit increased 34.9% year-on-year to

    ¥26,649 million, and net income attributable to owners of the parent increased 65.0% year-on-year to

    ¥22,550 million, due partially to the fact that a gain on negative goodwill was recorded under extraordinary gain as a result of making Sendai Television Inc. a consolidated subsidiary.

    Results by operating segment are as follows.

    Nine months ended December 31

    Net sales			Operating income (loss)
    2015	2016	Change	2015	2016	Change
    Millions of yen	Millions of yen	%	Millions of yen	Millions of yen	%
    Broadcasting	239,894	237,076	(1.2)	4,968	6,882	38.5
    Production	38,570	36,534	(5.3)	1,913	1,608	(15.9)
    Video and Music	35,807	34,081	(4.8)	41	(114)	―
    Life Information	101,936	99,206	(2.7)	1,312	1,399	6.7
    Advertising	30,643	32,760	6.9	246	215	(12.6)
    Urban Development	57,438	75,392	31.3	4,940	9,708	96.5
    Other	19,672	21,491	9.3	494	480	(2.9)
    Eliminations	(50,157)	(47,869)	―	60	20	―
    Total	473,806	488,672	3.1	13,976	20,201	44.5