Although we had been preparing to announce a new medium-term management plan set to commence from FY2011, we have decided to postpone the finalization of the plan until such time as when we can ascertain the degree of impact our business will face from the Great East Japan Earthquake of March 11. Therefore, for FY2011, we have formulated "Management Policy 2011," a one-year management plan, to enhance our profitability while placing priority on efforts to recover from the disaster and to complete full digitalization of terrestrial broadcasting.

1. Basic Concepts of "Management Policy 2011"

We recognize that the Japanese commercial broadcasting industry continues to face a harsh economic environment. In addition, the Great East Japan Earthquake is expected to have adverse effects on our television advertising revenues, which had been starting to show a favorable upward trend. The full digitalization of terrestrial broadcasting is to be completed in July this year. Against this backdrop, we place utmost importance on obtaining satisfaction from as many viewers as possible through developing (planning, creating, producing) even more compelling contents. We are determined to further strengthen our profitability, regain top viewer ratings and fortify our primary position in the TV advertising business. At the same time, we will diversify our business portfolio based on a long-term perspective through the active, content-based development of our Non-broadcasting businesses.

2. Outcomes
(1) Aggressive revisions of television scheduling and programming have resulted in improved NTV viewer ratings in the "core target" segment (13- to 49-year-old viewers) as well as household viewer ratings. Although we maintained the No. 2 position in all four categories of "All Day," "Prime Time," "Golden Time" and "Non-Prime Time" in FY2010, our viewer ratings successfully closed in on the top station. In the latest three-month period (from January to March in 2011), we obtained top ratings in all four categories to restore NTV "spot revenues" substantially and to increase our shares.

(2) NTV's media commerce business saw a steady revenue increase, especially with special shopping programs in cooperation with NTV network stations. In the movie business, "GANTZ," released on January 29, was a box-office hit with ticket sales of more than 3.3 billion yen and "GANTZ PERFECT ANSWER," released on April 23, has marked a successful start.

(3) As profitability of NTV Group companies has recovered, consolidated recurrent profit of FY2010 has amounted to about 38.7 billion yen with the recurrent profit to sales ratio substantially increased to 13.0% from 9.2% in FY2009. We have achieved increases in both consolidated income and profits for the first time in the last ten fiscal years.

(4) To strengthen our existing businesses and to develop new businesses, we invested actively, as follows.

·We made MADHOUSE Inc. our subsidiary through subscribing its third party allocation of newly issued shares in February. MADHOUSE, an animation production company, is famous for its high-quality production capability, which is demonstrated by its production of "SUMMER WARS," a blockbuster animation movie.

·To penetrate television content markets in Taiwan and mainland China, we agreed to establish a joint venture with CTI Television Incorporation, a major cable television broadcaster in Taiwan. The joint venture company will be launched toward the end of this May with operations expected to commence this coming June.

·To incubate new businesses, we initiated an in-house venture program and three business proposals have already been brought to a trial phase.

3. Major Points of New Policy
(1) Regain No.1 position in household viewer ratings through improving "core target" viewer ratings

·Be chosen as "the most reliable television station" in broadcasting disaster-related news
·Gain top position across all viewer rating categories
·Develop compelling television programs to obtain excellent "core target" viewer ratings and capture high household viewer ratings
·Cultivate creators

(2) Improve profitability and develop new businesses
TV advertising business
·Obtain top share of "spot revenue" among five key broadcasting stations
·Increase "time revenue" by utilizing various ideas (such as television program proposals and innovative CM techniques)

Non-broadcasting businesses
·Further improve existing non-broadcasting businesses
·Develop and promote new businesses to maximize strength of NTV Group in anticipation of full digitalization era
·Accelerate overseas development

(3) Continue to implement every cost control measure

(4) Increase NTV Group's overall profit by utilizing core competence of each Group company