2014 New Year Message to Employees from President Hiroshi Hayakawa(Summary)

January 6th, 2014

A Happy New Year to you all, all the members of the TV Asahi Group and all the staff members working here with us. We had good weather for the first three days of the New Year and I am sure you have been able to spend a relaxing and peaceful New Year holidays. On the other hand, I would like to thank all those who had to come to the office or who were working on various sites during those holidays.

I am extremely happy to be able to start the New Year with a joyous news with you as we did last year.

As the final results of the annual audience ratings for the year 2013, TV Asahi achieved the top annual golden-time audience rating for the first time since the launch of the station. And we also achieved top annual audience rating for prime-time for the second consecutive year, the ninth consecutive top for prime-2, and we were placed second by a narrow margin for all-day.

It is indeed a crystallization of the persistent hard work and daily efforts and commitments of all you; working at the sites of various divisions such as the programming and entertainment division, news division, sports division, fellow colleagues working for our group companies, and all the staff members involved that we were able to place ourselves in the top group in audience rating for the second consecutive year. So, let me congratulate you and pay my deepest respect to you all.

In 2013, the TV Asahi group has also kept its strong steps forward and continued to do extremely well in business results. In the first half of the fiscal year, from April to September, the consolidated results showed significant increase both in sales and profit. The considerable increase in advertisement revenue supported by our good audience ratings in terrestrial broadcasting is the major factor contributing to the good business results. Especially the share of the spot sales revenue in the Tokyo area marked a record high for the first half of the fiscal year and the momentum has been kept up well into the year-end/new-year period. We are also making steady steps forwards in expanding our non-advertising revenue. For example, our music-publishing business has contributed much in increasing both sales and profit by its successful nation-wide concert tours of its artists, and our Internet business and TV-shopping business have achieved higher revenue as well.

In order to sustain this strong growth into the future, we also proceeded last year steadily with infrastructure development as well. In October, our new strategic hub "Go-chan Square" was completed. With the launch of this new building, our group companies can set up their offices in proximity of our headquarters to complete our infrastructure for a better coordination among the group companies in various businesses including program productions. I am confident that the launch of "EX Theater Roppongi", attached to our new office building, will serve its role as a base from where we will send out our new and broader range of contents.

Our current business strategy entitled "TV Asahi Digital 5 Vision" proclaims its aim as "to complete the foundation to become a top group in comprehensive contents business in Japan" within the three years of FY2011 to FY2013. As I've mentioned before, almost all of the strategic aims have been achieved and in its last year of FY2013, the foundation has just about been completed.

As the culmination of the streamlining of our foundation, TV Asahi Group will make a transition to a certified broadcasting holding company structure effective on April 1st this year. Under the new structure, the terrestrial broadcasting business company "TV Asahi Corporation", BS Asahi (Asahi Satellite Broadcasting Limited) and CS One Ten, Ltd will become subsidiaries of "TV Asahi Holdings Corporation", and it will be the start of an integrated operation of the three waves.

Now that we have the foundation, the priority that is presented to us now is to set a time limit and pursue our challenge "to become a top group in comprehensive contents business in Japan". How do we link the 3 broadcast waves and thereby strengthen each media platform? What kind of contents do we have to produce to meet this goal? Which field of business do we need to cultivate in order to meet the needs of a new era? We need a clear vision of what needs to be done and our strategy has to be shared by all members of the group companies. In order to draw a blueprint of our future, all group companies are currently getting together to put our all-out efforts in designing the next 5-year-management plan "TV Asahi Digital 5 Vision 2nd Stage"

I would also like to make a request to all employees of our group. In April, TV Asahi Group will enter an uncharted territory under a new framework under a holding company structure.

To pave the way in a new territory requires enormous devotion and energy. But the very reason why TV Asahi had been able to grow this far is because of the challenging spirit which has been passed down from our predecessors to current members since the launch of the station. This challenging spirit is engraved deeply in our DNA; let us exert it fully and let us build up together a new era of TV Asahi Group.

It is a good omen that we have acquired the broadcast right for FIFA World Cup Brazil "Japan vs. Columbia" to be held in June. In 2014, we will also cover AFC Asian Cup for both men and women. This is going to be the first year of TV Asahi Holdings, let us gallop through this "year of horse" with vigor together with our national soccer team who will fight heated battles. With this commitment, I would like to close my New Year Message.
Thank you very much for your kind attention.