(April 1 September 30, 2010) · 80 90 100 FY09 Jul.-Sep. FY10 Jul.-Sep. Real estate business Events/Content business Programming sales Spot Time. ... 23,922 24,347 424 1.8 5. Nippon

Results Meeting for 2nd Quarter of FY2010(April 1 ‐ September 30, 2010)

November 9, 2010

Nippon Television Network Corporation

Statements made in this presentation with respect to NTV' s current plans, strategies and beliefs as well as other statements that are not historical facts are forward‐looking statements. Such forward‐looking statements are based on management's assumptions and beliefs in light of the information currently available to it. These forward‐looking statements involve risks and uncertainties that could cause actual results to differ materially from those discussed in the forward‐looking statements, and therefore you should not place undue reliance on them. We do not intend to update these forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable laws.

2nd Quarter Highlights


FY2010 2nd Quarter Highlights

Consolidated sales and profitincreased

Non‐consolidated sales

decreased while profit increased

FY2010 2nd Quarter Results


Operating Results (Consolidated)


(Unit: Millions of yen)

FY09 Jul. ‐ Sep.

FY10Jul.‐ Sep.

%

Net sales 75,226 72,117 △4.1

Operating profit 3,481 3,556 2.2

Recurring profit 4,258 4,762 11.8

Net income 2,593 1,883 △27.4

FY09 Apr.‐Sep.

FY10 Apr.‐Sep.

%

Net sales 144,313 144,972 0.5



Net income 6,469 9,236 42.8

1


FY09 Apr.‐Sep.

FY10 Apr.‐Sep.

%

Net sales 129,313 126,321 △2.3



Net income 5,534 6,865 24.0

Operating Results (Non‐consolidated)



２

FY09 Jul.‐Sep.

FY10 Jul.‐Sep.

%

Net sales 67,566 63,076 △6.6

Operating profit 3,347 1,903 △43.2

Recurring profit 4,023 2,598 △35.4

Net income 1,451 617 △57.4

0

20

40

60

80

100

FY09 Apr.-Sep.

FY10 Apr.-Sep.

Sales revenue per business segmentReal estatebusiness

Events/Content business

Programmingsales

Spot

Time

0

10

20

30

40

50

60

70

80

90

100

FY09 Jul.-Sep. FY10 Jul.-Sep.

Real estatebusiness

Events/Contentbusiness

Programmingsales

Spot

Time


FY09 Apr.‐Sep.

FY10 Apr.‐Sep.

In/Decrease

%

Total 98,989 101,891 2,901 2.9

Time 55,313 53,088 △2,225 △4.0

Spot 43,676 48,802 5,126 11.7

TV Broadcasting Revenue(Non‐consolidated)



３

FY09 Jul.‐Sep.

FY10 Jul.‐Sep.

In/Decrease

%

Total 48,870 49,371 500 1.0

Time 28,306 26,705 △1,600 △5.7

Spot 20,564 22,666 2,101 10.2

FY09 Apr.‐Sep. FY10 Apr.‐Sep.

0

20,000

40,000

60,000

80,000

100,000

120,000

Spot

Time

FY09 Jul.‐Sep. FY10 Jul.‐Sep.

0

10,000

20,000

30,000

40,000

50,000

Spot

Time


Events/Content Business Sales and Profit

Sales Profit

Events 3,584 3,241

BS, CS, CATV, Other 2,462 1,296

Rights 1,569 566

Overseas Sales 255 87

Media Commerce 5,512 4,894

Publications 323 268

Movies 3,492 3,136

VoD 590 603

Other 16 254

Total 17,803 14,346


4

FY10 Apr.‐ Sep.


Production Costs



FY09 Apr.‐Sep. FY10 Apr.‐Sep. Increase %

47,182 48,019 837 1.8

FY09 Jul.‐Sep. FY10 Jul.‐ Sep.

23,922 24,347 424 1.8

5


FY10 Apr. ‐Sep. CAPEX Depreciation

Consolidated 2.5 4.0

Non‐consolidated 2.2 3.6

CAPEX and Depreciation


(Unit: Billions of yen)

FY10 Forecast CAPEX Depreciation

Consolidated 5.2 9.1

Non‐consolidated 4.5 8.2

6

*Forecast for financial year remains unchanged


Segment Information （Results and Forecast)

FY10 ForecastContent business

Real estate business

Other Adjustment Consolidated

Net sales 288,300 6,800 2,800 ‐4,400 293,500

Operating expenses 264,460 4,960 2,780 ‐4,400 267,800

Operating profit 23,840 1,840 20 － 25,700

Apr. ‐ Sep. ResultsContent business

Real estate business

Other Adjustment Consolidated

Net sales 142,580 3,419 1,743 ‐2,770 144,972

Operating expenses 131,786 2,545 1,707 ‐2,770 133,268

Operating profit 10,794 873 35 － 11,703

(Unit : Millions of yen)

7

*Forecast for financial year remains unchanged

Sales andContent Business Strategies

and FY2010 Forecast


Sales Strategies (Time)


FY09 FY10

July △13.5% △2.9%

August △26.8% △5.1%

September △9.8% △8.8%

1H △17.1% △4.0%

(%)

８

-20

-15

-10

-5

0

5

10

January


Sales Strategies (Spot)


FY09 FY10

July △5.2% 13.5%

August △2.2% 13.2%

September 3.6% 4.5%

1H △7.3% 11.7%

(%)

９

-10

-5

0

5

10

15

20

January


NTV Movie Lineup ①


Title Release date Distributor

Karigurashi no Arrietty July 17th TOHO

Head Organizer BECK September 4th SHOCHIKU

Head Organizer Kimi ni Todoke September 25th TOHO

The Incite Mill: 7‐Day Death Game October 16th WARNER BROS.

10


NTV Movie Lineup ②


Title Release date Distributor

Head Organizer Mother Water October 30th SUURKIITOS

Head Organizer GHOST November 13th PARAMOUNT

SHOCHIKU

Head Organizer GANTZ (prequel) January 29th TOHO

Head Organizer Taiheiyou no Kiseki February 11th TOHO

11


TV‐Shopping


Top 5 Bestsellers (Apr. – Sep. 2010)FY09 Apr.‐Sep.

FY10 Apr.‐Sep.

Revenue 5,199 5,510

Profit 610 618


■ Increased sales and profit surpassedlast year’s performance

・Network affiliate stations and BS Nitteleincreased broadcast time

・Popular‐selling items (car navigation system,

limited edition of bags, etc.)

・In addition to regular programming,

special programs garner popularity

“Mino Monta no Ureru ni wa Wake ga Aru!”

2nd Quarter sales and profit

12

■ Future strategies・ Set aside broadcast slot with network affiliate stations

for program development

・ Continued improvement of regular and

special programming production

(linking with MC in studio, original shows, etc.)

・ Increase client satisfaction

(i.e.: ability to earn points via shopping)


FY09 Apr. – Sep. FY10 Apr. – Sep. Increase %

Net sales 89,29 10,094 1,165 13.0

Operating profit △1,527 222 1,749 －

Cost percentage 89.2% 74.1% －－

VAP



Highlights

Factors contributing to increased sales

• VAP, who conducts consignment sales for TOY’S FACTORY, has released a succession of titles by leading artists ➪Sales increased 1.8 times compared to same period last year

• Favorable sales of NTV movie “BANDAGE” as well as NTV dramas “Kaibutsu‐kun” and “Hotaru no Hikari: It’s Only Little Light in My Life”

Factors contributing to increased profit

• Reduced sales cost ratio

• Decrease of VAP’s amortization of Minimum Guarantee (MG) (1.87 billion to 300 million), and reduction of royalty ratios and production fees (1.01 billion to 610 million)

Forecast

• Scheduled release of Mr. Children album in December; CD releases by BUMP OF CHICKEN, KETSUMEISHI and YUZU scheduled for 2nd half of year

13


2H FY

TV broadcasting revenue △1.9% 0.2%

Time △5.0% △5.0%

Spot 1.8% 6.6%

Production costs △6.1% △1.7%

FY2010 Forecast and Preconditions



Fiscal year Net sales Operating profit Recurring profit Net income

Consolidated 293,500 25,700 31,700 18,600

Non‐consolidated 258,000 21,900 26,300 15,200

*Business forecast and preconditions remain unchanged from announcement on July 29, 2010

14

Preconditions of TV broadcasting revenue and production costs

FY2010 Forecast

Programming Strategies


NTV TBS CX EX TX

All day 7.9 6.4 8.2 7.2 2.8

② ④ ① ③ ⑤

Prime time 12.1 9.6 12.5 11.8 5.8

② ④ ① ③ ⑤

Golden time 11.9 9.3 12.5 11.2 6.0

② ④ ① ③ ⑤

Non‐prime time 6.7 5.6 7.0 5.9 2.0

② ④ ① ③ ⑤

Rating Topics –FY10 1H


FY18 1H Ratings (03/29/2010 ‐ 10/03/2010)

15

Won Prime Time viewer ratings title 15 times this year (10 times last year)Increased core ratings, especially among teens and F2Received high praise from clients for timetable

Summary of 1st Half of Year

Topics from 1st Half of Year

Efficiently used production fees Increased household viewer ratings by strengthening regular programmingReached target viewers more effectively;(simultaneously achieved above three goals)Drama slots doing favorablyWeekend programs gaining momentum


Rating Topics Prime Time Jul.‐Sep.


NTV TBS CX EX TX NHK HUT

All day 8.0 6.2 8.1 7.1 2.8 6.5 41.2

② ④ ① ③ ⑤

Prime time 12.4 9.2 12.2 11.3 5.8 9.6 61.1

① ④ ② ③ ⑤

Golden time 12.2 9.0 12.3 10.7 6.0 10.9 62.3

② ④ ① ③ ⑤

Non‐prime time

6.7 5.4 7.0 5.8 1.9 5.6 35.5

② ④ ① ③ ⑤

06/28/2010 ‐ 10/03/2010

16


Programming Reform Themes for October

17

• Increased core target viewership• Attain top household viewer ratings

①Strengthen weaknesses

■Friday Super Prime•Plan to broadcast a succession of new, original content•Promote intriguing content in a special time slot ➪Main goal is to achieve habitual viewing

■19:00 time slot and across‐the‐board programming•Strengthen projects, currently revising directing aspect➪Create solid penetration among viewers

① Strengthen weaknesses ② New endeavors

*10.4% for 11/5 broadcast*11.7% for 10/29 broadcast”Sanma&Tokoro no Yononaka wo Ugokashiteiru no wa Dareda Kaigi”


Theme of Programming Reform Themesfor October

②New endeavors■Theme‐based weeklong programming

Nov. 1 through 7 Shokutaku Shiawase Shuukan” ➪Positive feedback from clients■”Digitally‐armed” programs

Reinforce datacasting, fuse with online sites such as SNS, strengthen cooperation between digital department and programming■Meeting client needsCreating programs with the aim of launching new businesses

■End‐of‐year, New Year, initial start/end of spring termDevelop new special programs in addition to annual special programs

■Program distributionConsider actively distributing in the form of a drama series●Annual/fiscal year viewer ratings

Catching up to top broadcasterEnhance regular programming and develop special programming

●Production feesContinue effective usage of feesAggressive production fee input at beginning of term forecast

* Shokutaku Shiawase Shuukan

*Introduce latest digital infoMondays from 25:29 on “icon”

18


Formulating New Businesses

19

July 2010Expand non‐advertising revenue sourcesBuild new businessesSeek business proposals that reinforce employees and Group companies to be more business‐minded

Three Incubation Projects Begin Trial Run

Create new business model using TV x Internet x coupons to enhance the existing flash marketing service to meet client needsLaunch projects and services linked to programsAnticipate attracting at least 10,000 peopleTeam up with restaurant franchises, convenience stores, theme parks, electronics retail stores, etc. and anticipate issuance of tickets

➪750 entries submitted by NTV and various groupcompanies➪three proposals with potential for immediatelaunch were chosen

*Flash Marketing ServiceCan purchase online discounted tickets/coupons online if pre‐set minimum number of sales is reached within a limited time frame

■NTV Group Ticket


Launching New Businesses

20

Mobile devicesPrediction that 1 out of 2 phones will be a SmartphoneLeverage creativity to launch into application business

➪NTV Group companies produce and sellLaunch “NTV Apps” functioning with application portal

Establish internal ”Apps Programming Project”Committee will function as “Programming Department” to gather information and determine strategy

Widely seek application projects internally as well as externallyNot only link TV and programming content, but plan tocreate and sell attractive applicationsAlso, assertively consider setting up businesses to link recommended sites to TV programs

Convenient

EnjoyableApp

portal

■NTV Apps

Reference Materials for Financial Results


Spot Sales (Apr. – Sep.)


FY10 Apr. – Sep. Share Yoy(%) FY09 Apr. – Sep. Share Yoy(%)

1 Cosmetics/Toiletries 12.8 45.2 Cosmetics/Toiletries 8.9 △ 8.3

2 Automobile 7.1 28.7 Electronic equipment 8.6 7.1

3 Pharmaceutical 7.0 △ 2.5Transportation/Telecommunications

7.9 5.4

4 Alcohol 7.0 △ 3.4 Non‐alcohol 7.6 △ 10.7

5 Electronic equipment 6.7 14.3 Alcohol 7.2 △ 11.4

6Transportation/Telecommunications

6.7 20.6 Automobile 7.0 △ 10.0

7 Service 5.7 7.3 Pharmaceutical 7.0 △ 1.3

8 Non‐alcohol 5.7 10.7 Service 4.9 △ 8.5

9 Box office/Entertainment 5.1 △ 7.6Box office/Entertainment

4.9 7.4

10 Finance 4.4 7.8 Finance 4.8 △ 10.5

Other 31.4 9.7 Other 31.2 △ 19.1

Total 100.0 Total 100.0


Spot Sales (Jul. – Sep.)


FY10 Jul.‐ Sep. Share Yoy(%) FY09 Jul.‐ Sep. Share Yoy(%)

1 Cosmetics/Toiletries 10.5 30.9 Electronic equipment 9.2 25.1

2 Automobile 7.8 34.4Transportation/Telecommunications

9.0 19.5

3 Pharmaceutical 7.3 12.4 Cosmetics/Toiletries 7.4 △ 16.1

4Transportation/Telecommunications

6.8 10.3 Automobile 6.9 △ 19.4

5 Electronic equipment 6.5 33.2 Non‐alcohol 6.4 △ 10.2

6 Alcohol 6.3 △ 6.7 Pharmaceutical 6.2 △ 9.0

7 Service 6.1 6.8 Alcohol 5.8 △ 19.7

8 Box office/Entertainment 5.7 △ 15.4Box office/Entertainment

5.8 26.3

9 Non‐alcohol 5.3 30.1 Finance 5.0 △ 17.4

10 Finance 4.9 26.3 Service 4.8 △ 20.6

Other 32.2 1.9 Other 33.6 △ 19.0

Total 100.0 Total 100.0


Overview of Management Policy 2010

(April 1 September 30, 2010) · 80 90 100 FY09 Jul.-Sep. FY10 Jul.-Sep. Real estate business Events/Content business Programming sales Spot Time. ... 23,922 24,347 424 1.8 5. Nippon

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