Nippon Television : Results for FY2023

FY2023

Financial Results

This presentation may include forward-looking statements. Actual results, however, could differ significantly as a result of various factors and circumstances. Forward-looking statements contained herein are not guarantees or commitments. Reproduction of this presentation is prohibited.

Capital Efficiency Plan

Overview of Financial Results and Forecast

Contents Strategy

Programming Strategy

Digital & Streaming

Strategic Investment Trend

Reference Materials

Capital Efficiency Plans

Shareholder Return

Dividend distribution to foreign shareholders not listed on the shareholder registry

• We will propose at the Ordinary General Meeting of Shareholders an amendment to the Articles of Incorporation that would enable foreign shareholders without voting rights (foreign shareholders above 20%) to receive dividends.
• Should the proposal to amend the Articles of Incorporation be discussed and passed, receiving dividends will become possible with March 31, 2024 as the record date.

Stock repurchase

• Stock repurchase of 5 million shares (upper limit) for the purchase price of JPY 7 billion (upper limit) through market purchase at the Tokyo Stock Exchange.
• Period of repurchase is February 2, 2024 through May 31, 2024.
• As of the end of March, 1,625,700 shares have been repurchased at the total price of JPY 3,485,078,733.

Dividend policy

•We will make continuous and steady dividend distributions with the amount based fundamentally on the previous year.
FY2023 dividend is JPY 40 per share, which includes a JPY 3 per share commemorative dividend. Our outlook for FY2024	regular
dividend is JPY 40 per share.
•We are aiming for a total dividend payout ratio of 30%.	3

Capital Efficiency Plans

Capital Policy

Continuous reduction of cross-shareholdings

•As we continue to reduce cross-shareholdings, we will consider factors such as the financial performance, dividend, and share price of relevant companies to determine whether it is reasonable to own their shares.

•In FY2023, we recorded JPY 11.9 billion in capital gains from stock sales.

Cash allocation

•We will place importance on the balance of investments for growth, investments to enhance our content creation expertise, human resource investments, capital investments, shareholder return (stock repurchase/dividend fund), and the like.

•New M&A fund (FY2024): approximately JPY 68 billion (＊refer to page 39 for strategic investments)

•As a news media, we will consider the necessity of having cash on hand for the continuation of broadcasting under catastrophic disasters.

We aim for higher ROE through improved financial performance and capital
efficiency. We will construct the next Medium-Term Management Plan to promote	4
growth strategies that take into account cost of capital.

Capital Efficiency Plan

Overview of Financial Results and Forecast

Contents Strategy

Programming Strategy

Digital & Streaming

Strategic Investment Trend

Reference Materials

FY2023 Financial Performance

Higher sales, lower operating profit

■Share of spot ad sales over 30%.

Tough conditions continue for TV ads, leading to lower terrestrial advertising revenue.

■Nippon TV's income from anime, international content sales, IP business, and films were strong.

■Group companies Murayama, TIPNESS, ACM, and Nippon TV Music were solid and helped offset weak ad sales to post higher revenues.

Studio Ghibli was included in the PL starting 4Q (BS inclusion started in 3Q).

Booked impairment for la belle vie due to deteriorating business environment.

Higher net income from equity in net income of affiliates and sales of cross- shareholdings.

6

HD: Consolidated Results

Group

Companies

Nippon TV

Content

Strategy

New Business

Reference

Materials

Consolidated Forecast and Dividend Forecast

Forecast for FY2024

(Millions of yen)

FY2023 Result

Forecast for

Change

Change(%)

FY2024

Net Sales

423,523

442,000

18,477

4.4%

Operating Profit

41,877

42,000

123

0.3%

Recurring Profit

49,503

48,000

△1,503

△3.0％

Profit attributable to owners

34,660

35,000

340

1.0％

of parent Net income

Dividend Forecast

Growth assumptions for terrestrial

TV advertising revenue (YoY)

(Yen)

2Q

Year-

Annual

YoY

End

FY2023

10

30

40

Time

△3％

Result

FY2024

10

30

40

Spot

1％

Forecast

The year-end dividend forecast for FY2023 of 30 yen includes a commemorative dividend of 3 yen.

7

HD: Consolidated Results

Group

Companies

Nippon TV

Content

Strategy

New Business

Nippon TV HD: Consolidated Financial Results

	(Millions of yen)	FY2022	FY2023	YoY	Change
	Net Sales			413,979		423,523		9,544	2.3%
	Operating Profit		46,593		41,877	△4,716	△10.1%
	Recurring Profit		51,775		49,503	△2,272	△4.4%
	Net Income attributable		34,081		34,660		578	1.7%
	to owners of the parent
(Millions of yen)				(Millions of yen)			(Millions of yen)
			Net Sales					Operating Profit
500,000			100,000					100,000			Recurring Profit

250,000		50,000		50,000

0											0												0
																					2020	2021	2022	2023
2020	2021	2022	2023	2020	2021	2022	2023
			1Q			2Q		3Q		4Q
			1Q			2Q		3Q		4Q				1Q			2Q			3Q		4Q

Reference	8
Materials

HD: Consolidated Results

Group

Companies

Nippon TV

Content

Strategy

New Business

Reference

Materials

Net Sales YoY Change Components

(Millions of yen)

+9,544

Previous

Nippon

Nippon

la belle vie

MURAYAMA

TIPNESS

Total Anime-

Other

Current

period

Television

Television

related

period

*Jul.- Dec.

Net Sales

Terrestrial

Events/Content

companies

Net Sales

9

Advertising

Business Sales

Sales

HD: Consolidated Results

Group

Companies

Nippon TV

Content

Strategy

New Business

Reference

Materials

Operating Profit YoY Change Components

(Millions of yen)

△421

△866

• 4,716

Previous

Nippon TV

TIPNESS

Total Anime-

Other and

Current

la belle vie

MURAYAMA

period

※Jul.- Dec.

related

Consolidated

period

10

Operating

companies

Adjustment

Operating

※Inc. goodwill amortization

Profit

Profit