Fuji Media : Quarterly Flash Report Results for six months ended September 30, 2016

Flash Report [Japanese GAAP] (Consolidated Basis) Results for the six months ended September 30, 2016

October 31, 2016

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: November 11, 2016 Scheduled date of commencing dividend payments: December 2, 2016

Availability of supplementary briefing material on quarterly financial results: Available Schedule of quarterly financial results briefing session: Scheduled

1. Consolidated Financial Results
2. Business Performance

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

   Six Months ended September 30 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	327,601 5.1	13,301 171.1	17,735 117.1	12,732 150.7
   2015	311,736 1.7	4,905 (48.5)	8,170 (52.9)	5,079 (58.2)

   (Note) Comprehensive income: Six months ended September 30, 2016: ¥9,354 million, (―)%;

   Six months ended September 30, 2015: ¥(1,688) million, (―)%

   Basic earnings per share	Diluted earnings per share
   Yen	Yen
   2016	55.06	―
   2015	21.96	―

3. Financial Position

4. Total assets	Net assets	Equity ratio
   Millions of yen	Millions of yen	%
   September 30, 2016	1,142,138	642,741	55.5
   March 31, 2016	1,136,406	638,383	55.4

   (Reference) Total shareholders' equity: September 30, 2016: ¥634,430 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	663,200 3.5	27,200 11.5	34,400 6.2

   Net income attributable to owners of the parent	Basic earnings per share
   Millions of yen %	Yen
   Fiscal year	24,500 7.3	105.96

   (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. Six months ended September 30, 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)	5,199,688	5,199,629
    Six months ended September 30, 2015
    3) Average number of issued shares during the period (shares)	231,230,118	231,264,252

    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 SECOND QUARTER OF THE

    FISCAL YEAR ENDING MARCH 31, 2017: (3) Explanation of Consolidated Financial Results Forecasts and Other Future Projections" on page 8.

    CONTENTS OF ATTACHMENT
16. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE SECOND 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 8
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. Consolidated Statements of Cash Flows 14
25. Notes to Consolidated Financial Statements 15
26. Segment Information 15
27. 1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE SECOND 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 six months ended September 30, 2016 (April 1, 2016 to September 30, 2016) states "Although weakness is seen in some parts, 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." The report also states that business outlook of corporations "shows cautiousness as corporate profits improvement appears to be pausing, although they remain at a high level."

    Amid this economic environment, the Fuji Media Holdings Group's consolidated net sales increased during the six months ended September 30, 2016, up 5.1% from the same period of the previous fiscal year to ¥327,601 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 ¥13,301 million, up 171.1% year-on-year, while a decline in the Production segment and an operating loss of the Life Information segment were recorded, the mainstay Broadcasting, Advertising, Urban Development and Other segments recorded increased income and the Video and Music segment secured an operating income despite an operating loss in the same period of the previous fiscal year. Recurring profit increased 117.1% year-on-year to ¥17,735 million, and net income attributable to owners of the parent increased 150.7% year-on-year to ¥12,732 million.

    Results by operating segment are as follows.

    Six months ended September 30

    Net sales			Operating income (loss)
    2015	2016	Change	2015	2016	Change
    Millions of yen	Millions of yen	%	Millions of yen	Millions of yen	%
    Broadcasting	160,492	158,641	(1.2)	442	3,512	694.6
    Production	26,494	24,186	(8.7)	1,442	1,008	(30.1)
    Video and Music	23,862	23,134	(3.0)	(139)	180	―
    Life Information	63,208	61,738	(2.3)	(478)	(24)	―
    Advertising	19,899	22,199	11.6	108	132	21.8
    Urban Development	39,094	55,893	43.0	3,157	8,039	154.7
    Other	12,892	14,181	10.0	272	351	28.7
    Eliminations	(34,208)	(32,374)	―	100	100	―
    Total	311,736	327,601	5.1	4,905	13,301	171.1

    Broadcasting

    Fuji Television Network, Inc. saw a decrease in revenue from time advertising sales due to severe conditions in the sales of regular programs, despite the 2016 Rio de Janeiro Olympics-related