Asahi Broadcasting : Consolidated Financial Report for Fiscal 2022

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Report for Fiscal 2022

(The Fiscal Year Ended March 31, 2023 under Japanese GAAP)

			May 12, 2023
Company Name:	Asahi Broadcasting Group	Stock Exchange Listing: Tokyo Stock Exchange
Holdings Corporation
Securities Code:	9405	URL https://corp.asahi.co.jp/en/
Representative:	Susumu Okinaka, Representative Director and President
Inquiries:	Yoko Kumada, General Manager, Corporate Management Division	TEL: [phone]

Scheduled Date of Ordinary General Meeting of Shareholders: June 28, 2023

Scheduled Date of Dividend Payment Commencement: June 29, 2023

Scheduled Date of Securities Report Filing: June 29, 2023

Preparation of Annual Supplementary Explanatory Materials: Yes

Annual Results Briefing Held: Yes (for institutional investors and analysts)

(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for Fiscal 2022 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results

(Percentage figures show the year-on-year increase (decrease).)

			Net Sales				Operating Income	Ordinary Income		Profit attributable to
							owners of parent
			¥ million		%		¥ million	%	¥ million	%		¥ million	%
	Fiscal 2022		87,028		2.3		2,594	(38.3)			2,661	(44.5)		1,354	(49.3)
	Fiscal 2021		85,100		8.6		4,203	56.0			4,792	58.0		2,671	-
Note: Comprehensive Income	Fiscal 2022: ¥3,107 million (216.5%)
					Fiscal 2021: ¥981 million (-11.2%)
			Basic Earnings per	Diluted Earnings	Rate of return on			Ordinary			Operating
				Income/Total
			Share			per Share	equity				Income/Net Sales
								Assets
					¥			¥			%				%		%
	Fiscal 2022		32.42			-		2.0					2.2		3.0
	Fiscal 2021		64.97			-		4.0					3.9		4.9
	(Reference)	Equity in Earnings of Affiliates	Fiscal 2022: ¥(32) million
								Fiscal 2021: ¥- million
(2) Consolidated Financial Position
			Total Assets		Net Assets	Equity-to-Asset Ratio	Net Assets per Share
			¥ million		¥ million					%				¥
	March 31, 2023	122,305			72,445					56.6				1,659.63
	March 31, 2022	123,788			70,497					54.1				1,604.91
(Reference)	Shareholders' Equity	March 31, 2023: ¥69,259 million
					March 31, 2022: ¥66,975 million
(3) Consolidated Cash Flows
			Net Cash Provided By	Net Cash Provided By	Net Cash Provided By		Ending Balance of
			(Used In) Operating		(Used In) Investing	(Used In) Financing			Cash and Cash
			Activities				Activities		Activities			Equivalents
			¥ million			¥ million					¥ million				¥ million
	Fiscal 2022				2,951			(5,046)					(1,610)				23,991
	Fiscal 2021				4,689			(4,276)					543				27,695

2. Dividends

		Annual Dividend per Share				Ratio of
				Payout	Dividends
							Total
							Ratio	to Net
	1Q-End	2Q-End	3Q-End		Period-End	Total	Dividends
		(Consolidated)	Assets
									(Consolidated)
	¥	¥		¥	¥	¥	¥ million	%	%
Fiscal 2021	-	7.00	-		17.00	24.00	997	36.9	1.5
Fiscal 2022	-	10.00	-		6.00	16.00	668	49.4	1.0
Fiscal 2023	-	6.00	-		8.00	14.00		34.4
(Forecast)

3. Consolidated Financial Results Forecasts for Fiscal 2023 (April 1, 2023 to March 31, 2024)

(Percentage figures show the year-on-year increase (decrease).)

		Net Sales		Operating Income	Ordinary Income	Profit attributable	Basic Earnings
			to owners of parent	per Share
		¥ million		%	¥ million	%	¥ million		%	¥ million	%	¥
Full Fiscal Year	90,000		3.4	2,500	(3.6)	2,700		1.4	1,700	25.6	40.74
* Notes
(1) Changes in the number of important subsidiaries during the period: None
(2) Changes in accounting policies, accounting estimates and restatements
1)	Changes in accounting policies in accordance with changes in accounting standards, etc.: None
2)	Changes in accounting policies other than 1): None
3)	Changes in accounting estimates: None
4)	Restatements: None

(3) Number of shares issued and outstanding (common shares)
1)	Number of shares issued and outstanding as of	March 31,	41,833,000	March 31,	41,833,000
	the period-end (including treasury shares)	2023	shares	2022	shares
2)	Number of treasury shares as of the period-end	March 31,	101,209	March 31,	101,261
		2023	shares	2022	shares
3) Average number of shares issued and	March 31,	41,768,602	March 31,	41,115,176
	outstanding for the period	2023	shares	2022	shares

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for Fiscal 2022 (April 1, 2022 to March 31, 2023)

(1) Non-consolidated Operating Results

(Percentage figures show the year-on-year increase (decrease).)

		Net Sales	Operating Income	Ordinary Income	Profit
		¥ million		%	¥ million	%	¥ million	%	¥ million		%
	Fiscal 2022	6,584		11.3	193	(46.0)	(28)	-	296		-
	Fiscal 2021	5,917		8.4	358	(25.0)	389	(38.5)	(6,299)		-
		Basic Earnings per	Diluted Earnings
		Share			per Share
				¥		¥
	Fiscal 2022	7.09		-
	Fiscal 2021	(153.22)		-
(2) Non-consolidated Financial Position
		Total Assets	Net Assets	Equity-to-Asset Ratio	Net Assets per Share
		¥ million	¥ million		%		¥
	March 31, 2023			56,164		42,211		75.2		1,011.49
	March 31, 2022			56,910		43,003		75.6		1,030.49
(Reference) Shareholders' Equity	March 31, 2023: ¥42,211 million
				March 31, 2022: ¥43,003 million

• These consolidated financial results are outside the scope of audit by certified public accountants and audit corporations
• Explanation concerning the appropriate use of forecasts and other special instructions

(Caution regarding forward-looking statements, etc.)

Results forecasts and other forward-looking statements contained in this report are based on the assumptions, beliefs, and uncertainties in light of information available to the Company's management as of the publication date and do not represent promises by the Company or its management that these performance figures will be attained. Actual results may differ materially from forecasts due to a variety of factors. Please refer to "1. Overview of Business Results, etc. (4) Future Outlook" on page 4 of the attached supplementary materials for information regarding the underlying assumptions for financial results forecasts, as well as explanatory and other notes regarding the use of financial results forecasts.

The Company will hold a briefing for institutional investors and analysts (online), scheduled for Monday, May 22, 2023. The document to be used at this briefing shall be published on the Company's website at 10:00 a.m. on the day of the event.

Supplementary Materials: Table of Contents
1.	Overview of Business Results, etc.	2
	(1)	Overview of Business Results for the Fiscal Year under Review	2
	(2)	Overview of Financial Position for the Fiscal Year under Review	3
	(3)	Overview of Cash Flows for the Fiscal Year under Review	3
	(4)	Future Outlook	4
	(5)	Significant Events regarding Going Concern Assumptions	4
2.	Rationale behind the Choice of Accounting Standards	4
3.	Consolidated Financial Statements and Primary Notes	5
	(1)	Consolidated Balance Sheet	5
	(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income	7
	(3)	Consolidated Statement of Changes in Equity	9
	(4)	Consolidated Statement of Cash Flows	11
	(5)	Notes regarding Consolidated Financial Statements	13
		(Going Concern Assumptions)	13
		(Segment Information, etc.)	13
		(Per Share Information)	16
		(Significant Events after Reporting Period)	17
4.	Other Information	17
	(1)	Changes to the Officers of the Company	17

1

1. Overview of Business Results, etc.

(1) Overview of Business Results for the Fiscal Year under Review

In fiscal 2022, which extended from April 1, 2022 to March 31, 2023, while the Japanese economy saw an easing of COVID-19 movement restrictions and a return to regular economic activity, the economic outlook remains uncertain due to unstable global conditions, drastic fluctuations in the exchange rate market due to the rising U.S.-Japan interest rate differential and surging raw material and commodity prices, etc.

Under these circumstances, net sales of the broadcasting and content business, where the Asahi Broadcasting Group (the Group) conducts its core business, increased mainly due to an increase in content-related sales. Net sales of the lifestyle business increased mainly due to TV shopping, among others. As a result of these factors, the Group's net sales for the fiscal year ended March 31, 2023 increased ¥1,928 million, or 2.3%, compared with the previous fiscal year and amounted to ¥ 87,028 million.

From the cost standpoint, cost of sales increased ¥2,485 million (4.5%) compared with the previous fiscal year, to ¥58,067 million. Selling, general and administrative expenses increased ¥1,051 million (4.2%) compared with the previous fiscal year, to ¥26,366 million. As a result of the above, operating income decreased ¥1,608 million, or 38.3%, to ¥2,594 million, while ordinary income totaled ¥2,661 million, a decrease of ¥2,131 million, or 44.5%. Additionally, while ¥210 million of extraordinary income due to sale of real estate for business was recorded, ¥933 million of extraordinary loss were recorded due in part to the recording of impairment loss on non-current assets and loss on valuation of investment securities.

As a result, profit before income taxes was ¥1,938 million, a decrease of ¥2,630 million, or 57.6%, and profit attributable to owners of parent was ¥1,354 million, a decrease of ¥1,317 million, or 49.3%.

Results by business segment are as follows:

Broadcasting and Content Business

Net sales in the broadcasting and content business totaled ¥72,967 million, up ¥1,618 million, or 2.3%, compared with the previous fiscal year. Despite a decrease in TV spot advertising sales, the mainstay of the business, content- related sales increased. Operating expenses increased by 4.0% due to cost of content development, among others. As a result, operating profit amounted to ¥2,602 million, a decrease of ¥1,052 million, or 28.8%, from the previous fiscal year.

Lifestyle Business

Net sales in the lifestyle business totaled ¥14,061 million, up ¥310 million, or 2.3%, compared with the previous fiscal year. The principal factor accounting for this increase in revenue was the launch of a new TV shopping program by a subsidiary company in the previous fiscal year. Operating expenses increased 4.7% due mainly to an increase of TV shopping-related costs, and an increase in the amortization of assets for which asset retirement obligations were recorded due to changes in the previous fiscal year's estimates for housing exhibition sites. As a result, operating profit amounted to ¥433 million, a decrease of ¥440 million, or 50.4%, from the previous fiscal year.

2