Press Conference by President Shinichi Yoshida (Outline)

November 25th, 2014

Speakers:

Shinichi Yoshida, President
Masaya Fujinoki, Executive Director in charge of Finance Division, Corporate Strategy Division, & Compliance Audit Department
Gengo Sunami, Executive Director in charge of Business and Administration Division
Takashi Hirajo, Executive Director in charge of Programming Division

Audience Rating Update:

Shinichi YoshidaF

We have only one more month to go until the end of the year and our positions in the annual rating so far are: the 2nd place for all-day, the 2nd place among the commercial broadcasters for golden-time, the 2nd place for prime-time, and the first place for prime-2. Our momentum has been increasing into the third quarter (October-December term) backed by high ratings achieved by our dramas and sports coverage, and now our annual rating for golden-time is ranked as the second. In November, there have been weeks when we were able to achieve the 1st place at a weekly average rating in both golden and prime time, and we will gear up this momentum into our year-end programming.

Takashi Hirajo:

We have 34 days left till the end of the year and the average annual ratings as of now are: 7.2% for all-day, 10.8% for golden-time, 11.4% for prime-time, and 7.4% for prime-2, placing us the first for prime-2, the second for all-day and prime-time, and the second among commercial broadcasters for golden-time. Our goal is to achieve the second place or above in all-day, golden, and prime-time for the third consecutive year. If we can keep up the top position for prime-2 till the end of the year, it will be 10 consecutive top since 2005.
The updates on the average audience ratings for this fiscal year since this April are: 7.0% for all-day, placing us second, 10.5% for golden-time, placing us second among commercial broadcasters, 11% for prime-time, placing us second, 7.2% for prime-2, placing us first. We have picked up +0.2 for golden-time, and +0.1 for prime-time since our last press conference.
The rating figures for the quarter starting from October, which goes under the figures for the latter half of the FY, as of now are: 7.2% for all-day, 11.7% for golden-time, and 12.0% for prime-time, placing us second in all three categories, and 7.3% for prime-2, placing us the first. Our monthly audience ratings are also at the same placements.

Recently, following the news of the death of Ken Takakura, each station programmed its own obitutainment. We have programmed a special obituary version of gTetsukofs Roomh the following day on the 19th. And on the following Sunday, we aired his posthumous film gAnata eh and achieved 14% average rating with a peak rating of 17.4% towards the end of the film.

And now I will report on the rating updates on each program. On the whole, our dramas are doing very well. The average rating for the first 6 episodes of gAibou: Tokyo Detective Duo Season 13h aired on Wednesdays from 21:00 so far is 17.5%. It is the second highest rating among all the serial dramas aired by commercial broadcasters in the 3rd quarter. The average rating for the first 6 episodes of gWoman in the Crime Labh featured in Thursday Night Mysteries slot from 20:00 is 13.2%, which is the fourth highest rating among all the serial dramas aired by commercial broadcasters in this 3rd quarter. And every one of the first 7 episodes so far of gDoctor Xh featured in Thursday Drama slot achieved over 20% ratings. Its average rating for the 7 episodes so far is 22.1% and it is the highest rating among all the serial dramas aired by commercial broadcasters in the 3rd quarter. As for our variety shows, we have reshuffled our programing of the 19:00 slot on weekends, and gAwesome!! Super Nippon Discovered by Professionals from Abroadh (tentative English title) aired on Saturday from 19:00 has achieved an average rating of 13.8% for its first 3 shows. The rating for its first show has broken the highest kick off record established by gNews Show to Make You Smarterh in the 1st quarter of 2010. Launching a new variety show now is a very difficult task for us as well as for all other broadcasters, but the show surpassed 13% rating for 3 consecutive times so far starting from its initial show and it is a record high for our regular program.

What is the attraction of gDoctor Xh for the viewers?

Shinichi Yoshida:

I have watched it last time as well, and this time again it gives me an exhilarating viewing experience. You know, it is really fun to watch, and the production is definitely up to our expectations. Its production staff members had told me gWe have finished it properly in every way so much so that we can boast ethis is what a drama should look likef,h before it was aired, so I had a very high expectations. And indeed it came out very much up to our expectations and its rating result shows that. Ifve attended the gBroadcast Program Councilh a few days ago and the theme for the day was gdramah and gDoctor Xh was evaluated very highly, which made me happy to know that its high evaluation is not only reflected in its high audience rating but comes from the professionals as well. I personally think one of the major contributing factors for its success is the way the leading role actress Ms. Yonekura plays her role. She looks like she is thoroughly enjoying her role.

Takashi Hirajo:

For the past 10 years, Ms. Yonekura has been working closely together with our producer Uchiyama, and I think, she has reached this well accomplished stage only as a result of having undergone much troubles and hardships and overcoming them together with Uchiyama. The original project for this drama was carried out with the script of Miho Nakazono, and the style of the drama is evolving as we have a new scriptwriter joining for this yearfs gDoctor Xh. The style of the drama is becoming more versatile and even more exciting. And good drama attracts good actors and actresses, and this time we have an all-star cast lined up including Mr. Kinya Kitaouji. So all in all everything is rolling well with this drama, which makes it a kind of drama that the viewers wanted to watch, an easy to watch drama that gives them exhilarating experience.

Nishikorifs ATP World Tour Finals Coverage Aired on Both BS & Terrestrial Broadcast:

Takashi Hirajo:

ATP World Tour Finals is the match that determines the best tennis player of the year, so it attracts much attention from viewers in itself, but on top of that Nishikori performed superbly and went into the semi-final. It became a legendary match which led to a high rating result. Additional contributing factor for the high rating was our commentator Mr. Shuzo Matsuoka, who has been following Nishikori since his boyhood. He has been featuring Nishikori in news and interviews on gHodo Stationh and many of our infotainment shows, which in effect has built up viewers interest on him. 15% rating for a terrestrial midnight slot is an astonishing figure. We covered the entire matches of the tour on our satellite channel, BS Asahi. And the audience rating of those who watched channels other than terrestrial NHK and key commercial broadcasters for the time slot of the coverage had 1.0 to 2.7 points higher rating compared to the same time slot of the previous four weeks. The surplus viewership is clearly from those who watched Nishikori on BS Asahi. This time we were able to interface BS Asahi and our terrestrial broadcast very effectively, and I hope wefll be able to do the same in our future broadcasting. And as for tennis as a sporting event, now that we have confirmed strong demands from our viewers, we will be working on it with very positive stance.

Upcoming Program Line-ups:

Takashi Hirajo:

As for upcoming major line-ups, we will air our special dramas on December 6th and 7th as the g2 Consecutive Night Special Dramas by Seicho Matsumotoh. We will air gDrama Special Seicho Matsumoto`A House on a Hillh (tentative English title) on December 6th and gDrama Special Seicho Matsumoto`Pro Bonoh on the 7th. And a long awaited gDoctors: The Ultimate Surgeonh is coming back in January as its season 3, and we will program a special on it prior to its start. We also have gISU Grand Prix of Figure Skating Series Final 2014h from December 12th to 14th. We have also announced most of the time slots for our year-end/new-year programming. Our year-end specials are gCream vs. Osamu Hayashi! Year-end Quiz Survivorh featuring a comedy duo Cream Stew and a cram-school teacher turned to TV personality, Osamu Hayashi, which is going to be a quiz battle of 100 entertainers vs. 100 intellectuals. Other than these, we just announced today that the Friday Night Drama slot for the fourth quarter will feature gSecond Loveh written by Shizuka Ooishi starring Kazuya Kamenashi and Kyoko Fukada.

Sales Results:

Shinichi Yoshida:

The year-on-year sales results for the month of October are 97.1% for time-sales and 106.9% for spot-sales, making the total sales of 102.3%. One of the contributing factors for time-sales was our success in raising the revenues of our regular programs that we had reshuffled for this third quarter. However, one of the baseball games of the one-off programming of Japan Series was a sales account of Asahi Broadcasting Corporation because the game was hosted by Hanshin, which had affected the overall time-sales result to fall short of last yearfs result. As for the spot-sales, communication related businesses including SNS continued to do well, and backed by business stimulus measures, real estate, finance, and insurance businesses were robust, which contributed to the sales result that exceeded last year by far. And that has led to our spot share to become a record high for a single month of October.
Next is the update on November sales status. The year-on-year sales results are: more than 94% for time-sales and more than 96% for spot-sales, making the total figure to more than 95%. There are many sport events lined up for November time-sales. We have aired sport events such as gISU Grand Prix of Figure Skating Series 2014h, the fourth game of g2014 Suzuki All Star Seriesh, and gJapan vs. Hondurash match of gKirin Challenge Cup 2014h. But, we had even more one-off programming last year including the seventh game of gJapan Seriesh, and gInternational Friendly Matchh Japan vs. Netherland and Japan vs. Belgium, so our time-sales outlook for November is less than that of last year. The spot-sales for November is partially on the stand still, which may result in falling short of last year in Tokyo area. However, as the market is starting to pick up in the latter half of November, we are currently doing our very best to stretch out our sales as much as possible until the end of the month.
December year-on-year sales update as of now is: more than 90% for time-sales and more than 87% for spot-sales, making the total of over 89%. As for time-sales, we have gGrand Prix Finalh of gISU Grand Prix of Figure Skating Series 2014h, which has the highest rating expectation among the series. We also have gFukuoka International Open Marathon Championshiph, for which we have signed a co-sponsorship agreement with Mynavi, NEC, Toyota, and Citizen, and we are striving hard to improve our sales right now. Our current sales activities are focused on achieving a good overall final result, including the sales for year-end special programs. On the other hand, as I have mentioned before, the situation for spot-sales did change drastically since November when it was treading water but now the market has picked up briskly. Our goal is to surpass previous yearfs figure in the third quarter of this year.

Revenues from Non-broadcasting Business:

Gengo Sunami:

EX Theater Roppongi is celebrating its first anniversary since its opening last year. I would like to mention about the anniversary project gOnceh (Japanese title: gOnce - On a Street Corner of Dublinh) which starts on November 27th. EX Theater Roppongi is celebrating its 1st anniversary on the thirtieth. The theater was built and launched by TV Asahi as the core of our gMedia City Frameworkh, a media hub that we are trying to establish around our headquarter in Roppongi. It was inaugurated on November 30th last year and already one year has passed since then. The theater has drawn lots of attention, and we have received good reviews on its usability, acoustic quality and its facilities, and we achieved an operation rate of approximately 88.3%, which is higher than expected. Wide range of performances have been organized from J- Pop artist and idols who are popular on our TV shows to theatrical plays and rock music, and some of the performances were successfully collaborated with our TV shows, which altogether have contributed to making this venue to be known as a new base for sending out live performances at Roppongi. To celebrate its first anniversary, we have brought the Broadway musical gOnceh onto its stage. The story is about an encounter and parting of a street musician and an immigrant woman in Dublin, the capital of Ireland, staged with beautiful, melancholic music. It is a big hit musical awarded with gTony Awardh in eight categories. Tony Award is the most prestigious award for theatrical work, which is equivalent to Academy Award for films. It will be staged 24 times at EX Theater Roppongi from November 27th (Thursday) until December 14th (Sunday). And the first performance of the coming new year in January will be gKikujiro and Sakih, a new theatrical piece derived from our popular TV drama series. The story is originally written by Beat Takeshi, in which he portrays his own boyhood together with his family the Kitanos in the Showa period of around 1955, depicting human empathy that evolved around his family and neighbors in downtown Tokyo. The original cast and staff members of the TV version, Takanori Jinnai and Shigeru Muroi, together with the director Kan Ishibashi and the scriptwriter Yasuhiro Koshimizu have come together again to create this theatrical version. A total of 13 performances will be on stage from January 9th (Friday) to the 18th (Sunday). And our popular annual stage show, gTetsukofs Room Concerth, will take place next month. Thanks to everyone, tickets are sold out for both Tokyo and Osaka venues.

Takashi Hirajo:

I will report on our film business. As I have informed you in the previous press conference, gStand by me Doraemonh has been a blockbuster hit. As of yesterday, the total number of its audiences is 6,241,266 and its total revenue is 8,288,441,000 yen. These results keep on breaking the records of the most revenue achieved by a film we have invested in, and it is still renewing the record every day. This is also the number one hit among all Japanese movies released this year. To my knowledge, the current figures makes it the 7th most successful Japanese anime-movie in the history.