Since the medium-term management plan for NTV Group (FY2006-2008) was formulated in May 2006, various measures have been taken for recovering and enhancing the Group's profitability. As we think it indispensable to modify the management strategy to respond to a rapidly changing business environment, we have developed a new management plan, incorporating what we have accomplished under the previous plan.

1. Outcomes

(1) During the past two years, bold and aggressive revision of television scheduling and programming has been made to improve viewer ratings. The recent upward trend of NTV ratings can be clearly seen. We marked achievements such as obtaining the triple and quadruple crown titles of viewer ratings in January 2008 and gained the highest monthly viewer ratings in golden time among the five major TV stations in April. Improvement of viewer ratings, as shown above, has helped to recapture spot revenue share.
(2) With regard to the objective of capturing the No.1 position in terms of the growth rate of non-broadcasting revenue, we have successfully expanded our media commerce and movie businesses.
(3) Rigorous cost control measures have been implemented in line with the sales increase. Effective cost control measures continue to be taken.

2. Basic policy of new management plan (FY2008-10)

The new management plan (FY2008-10) is based on the same management policy as the previous one (FY2007-09), that is that NTV Group should continue to develop and grow as the strongest comprehensive media company, building its businesses around the broadcasting business. Long-term objectives reflect those in the previous plan that content provided by NTV Group be No. 1 in both quality and quantity, multicontact points be promoted to its users and the No. 1 position be attained, further expanding and diversifying its non-broadcasting segments. A new objective has been added, which is to gain the No. 1 productivity rate position in the broadcasting industry. Pursuing the above-mentioned objectives, we aim to maintain and improve our reputation as a reliable corporation.
We retain the same medium-term objectives of achieving four "No.1" positions as in the previous plan, that is No.1 in viewer ratings and broadcasting revenue, No.1 in non-broadcasting revenue, No.1 in content delivery and No.1 in delivering customer satisfaction. Recapturing the No.1 viewer rating position and having the No.1 growth rate of non-broadcasting revenue should be achieved in the first year (=FY2008) of the new management plan.

3. Revision of target numbers

While taking structural changes in the advertising market seriously, we maintain the target number for broadcasting revenue. This unchanged target number demonstrates our firm resolution of winning back the top share in broadcasting revenue, which we think possible considering the current improvement of our viewer ratings. A slight decrease in the TV broadcasting segment revenue target reflects organizational restructure of affiliate corporations and revision of IT-related business plans. Meanwhile, the target number for non-broadcasting revenue is increased based on the results of the past two years and on the current business situation of each non-broadcasting business. Although the total sales target number is almost unchanged, a higher level of recurring profit should be achieved through enhancing profitability with rigorous cost control.

<Medium-term Earnings Target>

4. Major points of new plan

(1) Continue to review and aggressively revise television scheduling and programming, including elimination of prime time TV programs with single-digit viewer ratings, in order to recapture No.1 position in viewer ratings.
(2) Strengthen our content production capability through enhancing the total production system of the Group and cultivating "creators," with such measures as proactive personnel interchange among NTV Group companies.
(3) Achieve the No.1 position in the growth rate of non-broadcasting business among five major TV stations in the first year of the new management plan. Stretch further movie and media commerce businesses, both of which have entered a solid growth path. Expand the movie business to include overseas distribution.
(4) Accelerate multiuse deployment of NTV content in accordance with our multicontact-point strategy*.
　1. The NTV Group was successful in utilizing its "invention" of a multiple media collaboration for the Tokyo Marathon 2008, which deployed the Internet, mobile, CS broadcasting and terrestrial broadcasting through careful coordination of the entire Group.
　2. A Metadata Management department was newly established to further our multicontact-point strategy.
(5) Assess the feasibility of new business opportunities related to "1-SEG" broadcasting through trials such as "1-SEG" Premium Night Games, which were made possible after the granting of independent "1-SEG" broadcasting.

*Note: Multicontact-point strategy offers users the maximum number of opportunities to come into contact with NTV content on an anytime, anywhere basis.

5. Financial and Dividend Policy

(1) Important Financial Indicator Recurring Profit Margin
(2) Basic Dividend Payout Ratio 50% (Floor annual dividend per share: 180 yen)

The basic policy of NTV is that appropriate and stable dividend distribution is conducted, taking into consideration financial performance and continuous improvement of corporate value as well as long-term business expansion.