August 4, 2011 SKY Perfect JSAT Holdings Inc.

Transcription

3 Summary of Operating Income Statements Revenue, Operating Income and EBITDA increased from the previous corresponding period. Consolidated (Units: millions) 1Q/FY2010 1Q/FY2011 Comparison to 1Q/FY2010 Full Year Forecast of FY2011 vs. Full Year Forecast of FY2011 Revenues 35,171 37, % 151, % Operating Income 1,045 5, % 14, % Ordinary Income 463 5,663 1,222.1% 13, % Net Income (1,053) 3,420-7, % EBITDA *1 5,807 12, % - - *1 EBITDA is calculated as Net Income + Tax Expense + Depreciation Expense + Interest Expense SKY Perfect JSAT Holdings Inc. All rights reserved

4 Indicators for Multichannel Pay TV Business New subscriptions are healthy, and Net ARPU is increasing. (Units: thousand) 1Q/ FY2010 1Q/ FY2011 Full Year FY2010 Full year Forecast of FY2011 Number of new subscribers Net increase in individual subscribers Number of cumulative subscribers 3,720 3,742 3,725 3,778 ARPU * 1 Gross ARPU (units: yen) Net ARPU (units: yen) 3,251 1,457 3,264 1,586 3,236 1, SAC (units: yen) * 1 * 2 34,676 29,502 34,839 - SKY PerfecTV! HD subscribers rate *3 8.9% 21.8% 19.2% - *1. ARPU is calculated while taking into account three SKY PerfecTV! services Gross ARPU: Conventional subscribers fee-based unit price Net ARPU: Sales-based unit price (unit price based on the subscription or commission fee, which contribute to sales) *2. Since accounting procedures have been revised, part of sales promotion expenses are excluded from SAC from this quarter. *3. SKY PerfecTV! HD subscribers rate: Cumulative number of subscribers of SKY PerfecTV! HD / (Cumulative number of subscribers of SKY PerfecTV! SD + Cumulative number of subscribers of SKY PerfecTV! HD) SKY Perfect JSAT Holdings Inc. All rights reserved

6 Major changes Changes in asset classification and methods for calculating profit and loss The The profit, profit, loss, loss, and and assets assets related related to to satellite satellite connections connections for for DTH DTH services services are are reclassified reclassified from from the the category category of of the the Multichannel Multichannel Pay Pay TV TV Business Business to to the the Space Space & Satellite Satellite Business*. Business*. * * The The segment segment name name Satellite Satellite Business Business was was renamed renamed Space Space & & Satellite Satellite Business. Business. Revenue and expenses Assets Former segments Satellite Business Platform income, etc. Multichannel Pay TV Business (including the transmission service) Income from satellite for broadcasting Income from satellite communications Multichannel Pay TV Business Satellite business Broadcasting equipment on the ground Satellite equipment (for broadcasting) Satellite equipment (for communications) New segments Multichannel Pay TV Business Platform income, etc. (including the transmission service) Space & Satellite Business Income from satellite for broadcasting Income from satellite communications Multichannel Pay TV Business Space & Satellite Business Broadcasting equipment on the ground Satellite equipment (for broadcasting) Satellite equipment (for communications) SKY Perfect JSAT Holdings Inc. All rights reserved

7 Purpose of changes To actively reform the profit structure for each business segment ( Environmental changes and new management issues ) Shift to full-scale HD broadcasting and the H.264 system Develop new marketing strategies in line with the new BS broadcasting start Streamline the operation of the entire satellite fleet including the effective use of transponders, after the shift to H.264 Necessary investments for growth and continuous increase in profit New medium-term business plan (fiscal ) Multichannel Pay TV Business To develop a system that can produce profit in the platform business Space & Satellite Business To realize the cost and expand the global business in addition to domestic business Segment Change 1 Improve Improve the the profit/loss profit/loss management management as as a a platform platform service service provider provider of of the the Multichannel Multichannel Pay Pay TV TV Business Business ( ( Improvement Improvement profit profit structure) structure) 2 Integrated Integrated management management of of satellite satellite assets assets in in the the Space Space & & Satellite Satellite Business Business ( ( Improve Improve effective effective operation operation in in satellite satellite fleet) fleet) SKY Perfect JSAT Holdings Inc. All rights reserved

8 Reference Comparison between the former and new segment classifications (performance for fiscal 2010 *The new segments have not been audited) Consolidated (Units: millions) Former classification New classification unaudited Multichannel Pay TV Business Satellite Business Eliminations and Company Total Multichannel Pay TV Business Space & Satellite Business Eliminations and Company Total Total Revenues 110,479 31,909 (539) 97,434 53,969 (9,554) 141,850 Operating Expenses 103,556 24, ,488 36,728 (8,870) 128,346 (Depreciation Expenseincluded) 12,769 10, ,440 16, ,038 Operating Income 6,923 7,264 (683) (3,054) 17,241 (683) 13,503 Segment assets 127, ,437 90,395 56, ,696 88, ,078 (Former classification) (New classification) Multichannel Pay TV Business Satellite Business Multichannel Pay TV Business Space & Satellite Business Revenues(0.4%) 77.9% 22.5% (6.7%) 68.7% 38.0% Operating Expenses 0.1% 80.7% 19.2% (6.9%) 78.3% 28.6% Operating Income 51.3% 53.8% (22.6%) 127.7% Eliminations and Company Total (5.1%) Eliminations and Company Total (5.1%) SKY Perfect JSAT Holdings Inc. All rights reserved

9 Earnings forecast for fiscal 2011 (new segments) Promote profitability reformation of Multichannel Pay TV Business New classification Consolidated (Units: millions) Multichannel Pay TV Business Space & Satellite Business Eliminations and Company Total Total Revenues 107, % 54, % (10,600) (7.0%) 151, % Operating Expenses 108, % 37, % (9,900) (7.2%) 137, % Operating Income (1,600) (11.4%) 16, % (800) (5.7%) 14, % Primary measures: Active Active promotion promotion as as the the new new BS BS broadcasting broadcasting starts. starts. Continuous Continuous promotion promotion of of the the shift shift to to HD HD Development Development of of Internet Internet and and mobile mobile services services SKY Perfect JSAT Holdings Inc. All rights reserved

11 Revenues Contribution from subscribers increase in SKY PerfecTV! e2 and HD Growing demand for disaster prevention services and BCP in the Space & Satellite Business Consolidated, for each segment (Units: millions) 35,171 37,911 Multichannel Pay TV Business : +1,800 million yen 24,242 26,129 Increase in the income from subscription fees due to the increase in subscriptions to e2 and HD services [+2,400 million yen] Decrease in the income from SD commission fees [-600 million yen] 13,303 14,366 Space & Satellite Business : +1,000 million yen (2,374) 1Q/FY2010 Multichannel Pay TV Business Space & Satellite Business Eliminations and Company Total (2,584) 1Q/FY2011 Increase in the income from the earthquake-related satellite connection fees, etc. [+700 million yen] Increase revenue operation of N-STAR c. [+ 300 million yen] *1 The value in each segment was calculated with the new method. (The value for fiscal 2010, too, was revised.) SKY Perfect JSAT Holdings Inc. All rights reserved

12 Operating Expenses Decreased significantly since World Cup-related expenses disappeared. Consolidated, for each segment (Units: millions) 34,126 27,131 31,994 25,160 Multichannel Pay TV Business : -2,000 million yen Decrease in the cost for the World Cup broadcasting right, etc. [-3,000 million yen] Decrease in advertisement expenses [-500 million yen] Increase in program purchase cost [+140 million yen] -Postponement of the start of the sports games (due to the earthquake disaster) -HD program cost, etc. 9,185 9,248 (2,189) (2,414) Space & Satellite Business : -600 million yen 1Q/FY2010 1Q/FY2011 Multichannel Pay TV Business Space & Satellite Business Eliminations and Company Total *1 The value in each segment was calculated with the new method. (The values for fiscal 2010, too, were revised.) SKY Perfect JSAT Holdings Inc. All rights reserved

13 Operating Income, Ordinary Income, Net Income and EBITDA As cost decreased, profit and EBITDA increased. Operating Income Ordinary Income and Net Income EBITDA * Consolidated (Units: millions) 5,916 Consolidated (Units: millions) Consolidated (Units: millions) 968 5,663 12,226 4,118 5,118 3,420 1,045 5,807 (184) (170) 463 (2,888) (1,053) 1Q/FY2010 1Q/FY2011 1Q/FY2010 1Q/FY2011 1Q/FY2010 1Q/FY2011 Multichannel Pay TV Business Space & Satellite Business Eliminations and Company Total Ordinary Income Net Income *1 The value in each segment was calculated with the new method. (The values for fiscal 2010, too, were revised.) *2 EBITDA = Net Income + Tax Expense + Depreciation Expense + Interest Expense SKY Perfect JSAT Holdings Inc. All rights reserved

14 Balance Sheets The stable financial ground has been maintained. Equity Ratio: 55.0% Assets Liabilities and Equity Consolidated (Units: millions) Consolidated (Units: millions) 322, , , , , ,210 61,675 68,361 80,338 80, , , , ,613 15,227 14,806 32,601 32,403 4Q/FY2010 1Q/FY2011 4Q/FY2010 1Q/FY2011 Current Assets Net Property and Equipment Intangible Fixed Assets Investment and Others Current Liabilities Long-Term Liabilities Total Equity SKY Perfect JSAT Holdings Inc. All rights reserved

15 Cash Flows Consolidated (Units: millions) Based on the healthy operating cash flows stable cash position is maintained 1Q/FY2010 FY2010 1Q/FY2011 Net Cash from Operating Activities 15,669 38,956 17,909 Net Cash from Investing Activities (8,249) (28,595) 5,280 Net Cash from Financing Activities (3,184) (17,302) (3,481) Cash and Cash Equivalents at the End of Fiscal Year (A) 70,980 59,499 79,254 Term-end balance of interest-bearing debt *1 (B) 106,493 91,692 90,844 Term-end balance of net interest-bearing debt (B)-(A) 35,512 32,192 11,589 Capital Expenditures 4,252 18,757 3,479 Free Cash Flows *2 11,417 20,199 14,430 *1 Term-end balance of debts and unsecured corporate bonds *2 Free Cash Flows =(Cash Flows from Operating Activities )-(Capital Expenditures) SKY Perfect JSAT Holdings Inc. All rights reserved

16 Operating Results of Major Subsidiaries (Units: millions) Stable performance of subsidiaries continues SKY Perfect JSAT SKY Perfect Customerrelations SKY Perfect Broadcasting OptiCast Satellite Network JSAT International Inc. Major Area of Business Broad-casting platform, Satellite Operation Customer management Broadcasting Content distribution via FTTH Satellite communications Satellite communications % of Equity held by Holdings Revenues 1Q/FY10 1Q/FY11 30,988 31,448 4,353 3,983 5,466 6,950 2,273 2, , Operating Income 1Q/FY10 1Q/FY11 1,573 5,722 (219) (61) (238) (16) Ordinary Income 1Q/FY10 1Q/FY11 1,370 5,675 (218) (60) (236) (15) SKY Perfect JSAT Holdings Inc. All rights reserved

17 ARPU Net ARPU increased as HD subscription rate increased. Gross ARPU (Units: ) *1 3,251 3,258 3,224 3,212 3, ,603 2,615 2,582 2,567 2,617 Net ARPU *1 (Units: ) Q/FY2010 2Q 3Q 4Q 1Q/FY2011 1,457 1,477 1,493 1,529 1, Q/FY2010 2Q 3Q 4Q 1Q/2011 Basic fee Rental fee Monthly subscription fee PPV subscription fee Revenues from SKY Perfect's own content *1 ARPU is calculated while taking into account three SKY PerfecTV! services Gross ARPU: Conventional subscription fee-based unit price Net ARPU: Revenue-based unit price (unit price based on the subscription fee or commission fee, which contribute to sales) SKY Perfect JSAT Holdings Inc. All rights reserved

18 SAC Units: *1 Decrease due to decline in advertising expenses, etc. 39,309 34,676 35,099 13,186 10,497 13,852 30,698 29,502 7,703 10,287 7,815 9,591 9,436 7,310 6,067 6,218 6,082 6,975 7,862 6,467 7,456 8,929 9,047 7,824 6,681 *3 1Q/FY2010 2Q 3Q 4Q 1Q/FY2011 Units: millions *1 8,492 *2 3,064 5,827 4,874 4,942 2,053 4,553 2, ,240 1,587 1,203 1,398 1,177 1,223 1, ,034 1, ,167 1,023 1,341 1,259 1,031 *3 1Q/2010 2Q 3Q 4Q 1Q/FY2011 Others Sales incentives Promotional expenses Advertising expenses Free content costs *1 Total of 3 services of SKY PerfecTV! *2 The cost for charge-free contents include the cost for the broadcasting right related to World Cup, production and sales promotion expenses. *3 Since accounting procedures were revised, part of sales promotion cost was excluded from SAC from the first quarter of this year. (Difference from the previous values: Unit price: -775 yen; Total: -119 million yen) SKY Perfect JSAT Holdings Inc. All rights reserved

19 Trends in Number of New Subscribers and Churn Rate New subscriptions mainly to SKY PerfecTV! e2 are remained healthy. New Subscribers (Units :thousand) Quarterly Churn Rate* (Units :%) Q/FY2010 2Q 3Q 4Q 1Q/FY2011 SKY PerfecTV! SKY PerfecTV! e2 SKY PerfecTV! HIKARI Quarterly Churn Rate (%) * Quarterly churn rate is the average of monthly churn rates in the quarter SKY Perfect JSAT Holdings Inc. All rights reserved

20 Performance Forecast for FY2011 Consolidated (Units: millions) Revenues Operating Income Ordinary Income Net Income Dividends per Share( ) Number of New Subscribers FY ,850 13,503 12,394 4,421 1, FY2011 Forecast 151,000 14,000 13,200 7,000 1,200 (Units: thousand) 608 SKY PerfecTV! SKY PerfecTV! e2 SKY PerfecTV! HIKARI Net Increase Annual Churn Rate (%) Number of cumulative Subscribers * Annual Churn Rate = Total for 12 month of monthly churn rate % 3, % 3, SKY Perfect JSAT Holdings Inc. All rights reserved

22 The new BS broadcasting to be started in October 2011 New strategies for maximizing the subscriptions to SKY PerfecTV! e2 after the release of the new BS broadcasting Promotion the type of viewers Approach for the three types of viewers Households that watch BS and CS (9 million) Households that watch BS only (13 million) Households that watch terrestrial channels only 22 million households can watch SKY PerfecTV! e2 including new BS Active promotion with the mass media (CM and newspapers) and websites, etc. Expand the subscriber base utilizing BS SKY PerfecTV! Airing exclusive programs and highly-demanded contents Differentiation from other media, and promotion of SKY PerfecTV! e SKY Perfect JSAT Holdings Inc. All rights reserved

23 Increasing subscribers of SKY PerfecTV! e2 as the new BS broadcasting is to be started. Synergetic effects of the starting of new BS broadcasting Total 22 millions households BS channel NHK BS BSNTV BSTBS BSFUJI BS Asahi BS Japan BS11 TwellV BSWOWOW BS Digital New BS channel -To be started in October 2011 (A plan) - STAR CHANNEL 1 * STAR CHANNEL 2 * STAR CHANNEL 3 * GREEN CHANNEL BS ANIMAX * FOX bs238 * BS SKY PerfecTV! * J sports 1 J sports 2 -To be started in March 2012 (A plan) - J sports 3 J sports 4 BS Fishing Vision SKY PerfecTV! e2 subscribers can watch these BS channels. Cinefil IMAGICA (tentative channel name ) Japanese Movie Channel Disney Channel * *The channel which can be watched only in BS SKY PerfecTV! e2 (CS110 E) HD:11ch SD:56ch SKY Perfect JSAT Holdings Inc. All rights reserved

24 New flow of subscription to SKY PerfecTV! e2 after the start of the new BS Customers who have newly purchased digital TV Customers who already own digital TV sets Sales promotion at mass retailers <Approach for subscribers> CM/newspaper Websites, etc. Customers who cannot watch BS and CS Customers who can watch BS only Customers who can watch BS and CS (e2) 13 million households 9 million households <BS channels only> Free trial Antenna support campaign Free trial Free trial Subscription Antenna support campaign Addition of channels SKY Perfect JSAT Holdings Inc. All rights reserved

25 To curb the net decrease by promoting shift to the HD services To keep the cumulative subscribers to SKY PerfecTV! and SKY PerfecTV! HIKARI services Measures for promoting HD services To discount the fees for Valuable Pack and Select 15 (from July 1) Rental fee is free for 6 months (from April 1) Money-saving campaign for SKY PerfecTV! package (from April 1) HD channel will increase to 120ch level 4,700 yen/month 3,980 yen/month 3,800 yen/month 3,280 yen/month Addition of the dubbing function Move/Copy setting with SKY PerfecTV! HD DVR Tuner Programs can be saved in disks with a DVD/blu-ray recorder. Dubbing (Move/Copy) LAN Continuous provision of 3D contents To increase attractive contents by ourselves and in cooperation with broadcasters To start the VOD service in actvila (from June 30) T-ARA First Show Case 3D SKY Perfect JSAT Holdings Inc. All rights reserved

26 Enhance services from the viewpoint of customers Services for enabling customers to enjoy SKY PerfecTV! more Program information service beyond TV media categories The largest TV information service in Japan Program information service including terrestrial channels, BS and CS To offer new opportunities for customers to know the various programs provided by SKY PerfecTV! Integration of communication services To enrich proposal-based customer services according to viewing tendencies Satisfy new customers with new BS programs and the VOD service, etc. To minimize the cancellation of the subscription to SKY PerfecTV! SKY Perfect JSAT Holdings Inc. All rights reserved

27 New expansion of the Internet and mobile services To phase our SKY PerfecTV! services in the new fields SKY PerfecTV! New Internet and mobile services <Schematic diagram> SKY PerfecTV! e2 SKY PerfecTV! HD SKY PerfecTV! HIKARI Complementing service (To increase viewing opportunity and viewing method in addition to original satellite broadcasting) New service Internet and mobile services VOD distribution of SKY PerfecTV! Contents SKY PerfecTV! On-Demand On-demand distribution of the programs of SKY PerfecTV! through broadband lines Program connecting and complementing services for subscribers IP-based Multicast broadcasting service with simultaneous retransmission To enable subscribers to watch the contents of SKY PerfecTV! HD with PCs. To expand the range of the services of SKY PerfecTV! for non-subscribers SKY Perfect JSAT Holdings Inc. All rights reserved

29 Domestic stable profit grows as demand for the BCP measures increases Demand increase with the anti-earthquake disaster measure reinforcement of Government Agencies/corporation Communication service Central government Fire-fighting Medical institutions, etc. Revisions to anti-disaster plans Increase in the demand for satellite-based communication system An increasing number of organizations revise anti-disaster BCP plans. Mobile communication carriers Financial institutions Manufacturers Electric power and gas companies Local governments (Strengthening of radioactivity monitoring) BCP Cloud storage service Local governments Data center, etc. The demand for cloud services emerges SKY Perfect JSAT Holdings Inc. All rights reserved

30 Improvement of our global businesses and new businesses Active expansion of satellite services Global businesses To increase overseas sales ratio Launching of JCSAT-13 Disaster-resistant data storage service S*Plex 3 Cloud Storage Service New businesses Launching Image (Arian 5) Internet access service for vessels Ocean BB service This service is offered to LNG carrier Energy Navigator To secure the authenticity of e-documents, etc. Time Shower service Energy Navigator SKY Perfect JSAT Holdings Inc. All rights reserved

31 Satellite Fleet 14 satellites cover Middle East, Asia, Oceania, and North America broadly JCSAT-85 (85 E sectional ownership ) Horizons-1 (127 W) Horizons-2 (74 W) BS/CS Hybrid Satellite (JCSAT-110R) Superbird-B2 (162 E) N-SAT-110 (110 E) JCSAT-RA (Backup) JCSAT-5A (132 E) Superbird-C2 (144 E) Superbird- A3 (158 E) JCSAT-13 (JCSAT-4A successor) Satellite to be launched BS/CS Hybrid Satellite JCSAT-4A (124 E) (JCSAT-110R CS110 Back Up Satellite) <Launch Timing> <No. of Transponder > August 6, 2011 (planned) Ku-band 12 + spare <Coverage Area> Japan JCSAT-3A (128 E) N-STAR c (136 E) JCSAT-1B (150 E) JCSAT- 2A (154 E) (as of July 31, 2011) JCSAT-13 (JCSAT-4A successor) <Launch Timing> <No. of Transponder > 1Q/FY2012 (April - June) Ku-band 44 <Coverage Area> Japan, Asia, Oceania, Middle East SKY Perfect JSAT Holdings Inc. All rights reserved

32 Regarding future outlook The items other than past ones among the forecasts, strategies, management policies, and goals, etc. written in this reference material are based on the assumptions, plans, expectations, and judgments, etc. of executives with reference to currently available information. Such items regarding future outlook are influenced by various risks and uncertainties, and so they may be significantly different from actual results. The major risks and uncertainties that can be assumed as of now are as mentioned below. Please note that risks and uncertainties are not limited to them. Risks related to business administration Risk of restrictions on businesses due to legal regulations, etc. related to the businesses of our corporate group Risk related to the security of customer information Risk related to serious damage to equipment due to large-scale disaster Risks related to satellite infrastructure Risk related to the functional failure and degraded performance of communication satellites Risk related to the procurement of communication satellites Risk related to the insurance for satellites Risks related to the paid multi-channel broadcasting platform Risk related to the activities for increasing and keeping subscribers Risk related to broadcasters Risk related to the security of IC cards, etc SKY Perfect JSAT Holdings Inc. All rights reserved

33 Please direct any inquiries regarding this material to the division in charge. SKY Perfect JSAT Holdings Inc. Corporate Communications & Investor Relations Div SKY Perfect JSAT Holdings Inc. All rights reserved