Asahi Broadcasting : Corporate Report (Integrated Report) 2022

2022	Asahi Broadcasting Group Holdings Corporation
Corporate Report
[ Integrated Report]
Securities code: 9405

(Note)

This document has been translated from the Japanese original* for reference purposes only and does not cover all contents. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. *https://corp.asahi.co.jp/ja/company/report.html

The Group's Business Philosophy

As a dynamic and creative corporate organization,

the Group continues to evolve while adapting to changing social conditions

and contributes to the development of society.

Vision of a NEW HOPE

Creating and delivering New Happiness

2 Asahi Broadcasting Group Holdings Corporation Corporate Report 2022

C O N T E N T S

Business of
the Asahi Broadcasting Group	4
Message from the President	6
Value Creation Model	12
Keywords for
Enhancing Corporate Value
1. Sustainability in	14
the Asahi Broadcasting Group
2. Strengthen and Diversify	16
Human Resources throughout the Group
Strategy and Value Creation of
Each Business	20
Broadcasting and Content Businesses	20
Lifestyle Business	30
Feature 1 Director Discussion
Delivering New Content with
a Colorful Team of People	32
Feature 2 Outside Director Interview
Enhancing Corporate Value Through
Risk Management and Risk-taking	36
Skills Matrix	38
Appendix	40
Overview of Asahi Broadcasting Group	40
Consolidated Financial Statements	42
11-year Financial and Non-financial Data	44
Company Profile and Stock Information	46

Asahi Broadcasting Group Holdings Corporation Corporate Report 2022 3

Business of the Asahi Broadcasting Group

The core of our business is to "create" exciting content.

And to "deliver" this content to everyone through a variety of different means.

We, as a "comprehensive content business group" that continues to evolve by adapting to changes in the times and incorporating various ideas and technologies, continue to make society a better place to live through our businesses.

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Medium-Term

Management Strategy

NEW HOPE Vision

Creating and Delivering

New Happiness

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C o n t e n t

Financial Highlights

Consolidated net sales

				85,100
80,991	81,986	82,937	78,344	million yen
3/2018	3/2019	3/2020	3/2021	3/2022

Operating income/

Operating income margin ratio

Operating income margin ratio

4,250	4,262			4,203
		million yen
		3,388
			2,694
5.2%	5.2%			4.9%
		4.1%
		3.4%
3/2018	3/2019	3/2020	3/2021	3/2022

Profit attributable to owners of parent

	3,742
2,691				2,671
			million yen
		2,278
			-930
3/2018	3/2019	3/2020	3/2021	3/2022

4 Asahi Broadcasting Group Holdings Corporation Corporate Report 2022

Broadcasting Business

Our broadcasting business is a business that primarily earns advertising revenue by delivering high-quality programs and reliable information to viewers and listeners through broadcasting.

Content Business

Overview of Fiscal Year Ending March 31, 2022 (Broadcasting and Content Businesses)

We recorded net sales of 71,348 million yen, an increase of 9,498 million yen (15.4%) from the previous fiscal year. This was due to an increase in mainstay TV spot sales revenue affected by the COVID-19 pandemic in the previous fiscal year. Meanwhile, operating expenses rose due to the resumption of live sports broadcasts and events. As a result, operating income was 3,654 million yen, an increase of 1,634 million yen (80.9%) from the previous fiscal year.

Our content business is a business that creates high-quality content/intellectual property and shares this content through a variety of different media channels such as video streaming and events.

Sales Composition by Segment

Content Broadcasting

(Millions of yen)	Net sales	Operating income
75,000		7,500
	61,850	71,348
50,000		5,000
		3,654
25,000	2,020	2,500
0	3/2021	0
	3/2022

Lifestyle Business

Our lifestyle business is a business that utilizes the power of broadcasting and content to provide services that enrich people's lives.

Overview of Fiscal Year Ending March 31, 2022

We recorded net sales of 13,751 million yen, down 2,743 million yen (-16.6%) from the previous fiscal year. Meanwhile, operating income was 874 million yen, down 113 million yen (-11.5%) from the previous fiscal year. The main reason for the decrease in revenue and profit was that there were no large projects in our real estate sales business compared to the previous fiscal year. Income from our housing exhibition business, mail-order business, and golf business remained strong.

Sales Composition by Segment	(Millions of yen)	Net sales	Operating income
	18,000	16,494	1,800
			13,751
	12,000		1,200
		988	874
	6,000		600
	0	3/2021	0
		3/2022

Other Major Group Companies

Earnings per share (EPS)/ Dividend per share/Payout ratio

Payout ratio

	91.55
65.92		55.63		36.9%
30.3%	30.6%	32.4%		64.97 yen
		24 yen
20	28	18
	10
		-22.69
3/2018	3/2019	3/2020	3/2021	3/2022
	EPS	Dividend per share

Return on equity (ROE)	Cash and deposits/
	Interest-bearing liabilities

	5.9%					27,048		23,586
								22,362	million yen
				4.0%
		3.5%
4.5%					16,337
							12,518
					14,412
								11,910 million yen
							6,674
		-1.4%		495	981
3/2018	3/2019	3/2020	3/2021	3/2022
3/2018	3/2019	3/2020	3/2021	3/2022
						Cash and deposits	Interest-bearing liabilities

Asahi Broadcasting Group Holdings Corporation Corporate Report 2022 5