Financial Results for the 2nd Quarter of the FY2012 ending December 2012 July 24, 2012 Jupiter Telecommunications Co., Ltd.
Cautionary Statement Concerning Forward-looking Statements The financial information in this presentation was prepared in accordance with U.S. GAAP. This presentation includes forward-looking statements reflecting our plans and expectations, which are based on currently available information and may be influenced by uncertain factors, including but not limited to economic circumstances, competition, and potential new services. Therefore, please be advised that our actual business results may differ substantially from the forward-looking statements in this presentation. In addition, we expressly disclaim any obligation or intention to disseminate any updates or revisions to these forward-looking statements after this presentation. 1 Jupiter Telecommunications Co., Ltd.
Contents 1 Explanation of Performance and Financials 2 Major Initiatives for 2nd Half Appendix 2 Jupiter Telecommunications Co., Ltd.
1. Summary of 1H FY2012 [U.S. GAAP] Main factors for income decline was decrease In revenue relating to poor reception compensation of analog service Results generally fell in line with plans and forecasts for the full fiscal year (Billions of yen) 2011 1H 2012 1H YOY changes 2012 1Q(Jan-Mar) 2012 2Q(Apr-Jun) QOQ changes 2011 Actual 2012 Forecast YOY changes YTD progress Revenue 184.0 186.5 1.4% 92.5 94.0 1.9% 369.1 378.0 2.4% 49% Operating Income 40.0 34.3 14.2% 18.5 15.8 14.6% 71.1 73.5 3.4% 47% Income before noncontrolling Interests and Income taxes 38.4 339 11.9% 18.7 15.2 18.9% 68.5 71.0 3.6% 48% Net income Attributable to J:COM shareholders 20.5 184 10.0% 10.0 8.4 16.1% 37.3 39.0 4.6% 47% EBITDA* 81.4 752 7.7% 38.9 36.3 6.5% 156.4 2-3% * EBITDA=(Revenue) (Operating and programming costs) (Selling, general and administrative expenses) 3 Jupiter Telecommunications Co., Ltd.
1-1. 1. Summary of Principal Operations Various marketing initiatives led to steady customer base expansion End of June 2011 (Ave. Jan-Jun 2011) End of June 2012 (Ave. Jan-Jun 2012) (million) YOY Changes Subscribing households Cable Television 2.95 3.10 5.2 % High-Speed Internet Access 1.74 1.90 9.5 % Telephony 2.09 2.36 13.2 % Total RGUs *1 6.77 7.36 8.8 % Total subscribing households 3.48 3.69 5.9 % Bundle Ratio *2 1.94 2.00 0.06 Average Monthly Churn Rate per RGU 1.04% 1.00% -0.04Pts ARPU *3 7,646yen 7,377yen -269yen *1 Total RGUs (Revenue generating unit) = Total number of services provided *2 Bundle ratio = Average number of services received per subscribing household 4 *3 ARPU = Monthly average revenue per unit Jupiter Telecommunications Co., Ltd.
1-1.Changes in Operating Income (YOY Change) Most of decreased was disappearance of revenue relating to poor reception compensation of analog service [U.S. GAAP] 40.0 +2.2 2.9 (Billions of yen) Increase in Subscription fees, etc. Policy usage Promotional spending Personnel costs, etc. 5.0 34.3 ~ Compensation for poor analog reception, etc. ~ 1H FY2011 (Jan Jun) 1H FY2012 (Jan Jun) 5 Jupiter Telecommunications Co., Ltd.
1-1.Changes in Operating Income (Q1 vs. Q2) [U.S. GAAP] Main factors for income decline were decrease in subscription fees, moreover, seasonality and temporary costs such as programming costs and promotional costs 18.5 0.4 (Billions of yen) Decrease in Subscription fees etc. 1.4 Seasonality, Temporary expenses Programming cost Promotional spending 0.9 Other Personnel costs Agent fee 15.8 ~ 1Q FY2012 (Jan Mar) ~2Q FY2012 (Apr Jun) 6 Jupiter Telecommunications Co., Ltd.
1-2. Principal Operational Index (ARPU*) Range of drop expanded temporarily due to sales initiatives such as campaign, promotion of long-term contracts, etc. (yen) 7,800 7,646 yen (Ave. Jan-Jun) 7,695 1.3% 1.1% 0.3% 0.8% 1.4% ARPU YOY 3.5 % 7,600 7,400 7,200 7,000 97yen 7,598 82yen 7,516 25yen 7,491 62yen 7,377 yen (Ave. Jan-Jun) 7,429 104yen 7,325 1Q 2Q 3Q 4Q 1Q 2Q FY2011 * ARPU= Monthly average revenue per unit Expansion of the range of drop 62yen 104yen( 42yen) <Breakdown> Increase ARPU through various +7 yen measures Call charge +20 yen Comission fees (Mar, Sept) 27 yen Campaign, Increased ratio of long-term contracts 42 yen FY2012 7 Jupiter Telecommunications Co., Ltd.
1-2. Principal Operational Index (Churn Rate) Due mainly to successful CS activities, churn rate was further improved Average Monthly Churn Rate * per RGU 1.15% 1.10% 1.05% 1.10 1.08 FY2012 1.00% 0.98 FY2011 0.95% 0.90 ~ 0.90% 0.91 0.88 0.85% 1Q 2Q 3Q 4Q *Average monthly churn rate = (Total no. of churns in a given period) / (Weighted average RGUs over the same period) / (No. of months ) 8 Jupiter Telecommunications Co., Ltd.
1-3.Capital Expenditures [U.S. GAAP] Decline in CAPEX Ratio (Billions of yen) 35 30 25 CAPEX Ratio* 17.2% 14.2% 31.6 6.7 26.5 4.3 Topics (YOY change) Capital lease expenditures : -2.4 bn yen Decrease in in initial investments in in center facilities for J:COM PHONE Plus 20 15 10 5 24.9 22.2 CAPEX: -2.7 bn yen Decrease in in trunk-line extension expenses in inhadano and Isehara areas. Decrease in in investments relating to to poor reception compensation. 0 1H FY 2011 1H FY 2012 CAPEX Capital lease expenditures * CAPEX Ratio is defined as the ratio of total capital expenses to revenue. 9 Jupiter Telecommunications Co., Ltd.
1-4.Major Results CATV Business Continued to increase KDDI cross-sales promotion Expanded subscriptions utilizing au Smart Value as trigger Aggressively expand sales of products with high- ARPU Launched new services (Xvie, Megapack) Media Business Planned and produced original dramas (Asmik Ace Entertainment, Inc.) Promoted stronger programming through Integration of channels (Golf Network) Stronger Branding Opened J:COM Wonder Studio in Tokyo SKYTREE TOWN 10 Jupiter Telecommunications Co., Ltd.
1-4-1.Progress of Cross-sales sales Promotion The number of RGUs acquired via KDDI remained solid following on from previous quarter (RGU) 24,000 22,000 21,900 (Line) 14,000 20,000 12,000 18,000 16,000 10,000 9,100 14,000 12,000 8,000 10,000 6,000 8,000 6,000 4,000 4,000 2,000 2,000 0 1Q 2Q 3Q 4Q 1Q 2Q 0 1Q 2Q 3Q 4Q 1Q 2Q FY 2011 FY 2012 FY 2011 FY 2012 11 Jupiter Telecommunications Co., Ltd.
1-4-2.Expanded subscriptions utilizing au Smart Value as trigger Over ten percent of new subscriptions are au Smart Value -related 30,500Households / 64,900RGU (in total, as of June 30) Acquisition of non-subscribers:19,700households/49,500rgu Acquisition from existing subscribers:10,800households/15,400rgu Bundle ratio 2.51 25,000 20,000 Order entry started on Feb.14, 2012 Service launched on Mar. 1, 2012 (Household) Acquisition from existing subscribers 15,000 Acquisition of non-subscribers 10,000 5,000 0 1Q 2Q FY2012 12 Jupiter Telecommunications Co., Ltd.
1-4-3.Aggressively expand sales of products with high ARPU 160Mbps High-Speed Internet new acquisitions ratio Multi-channel services* new acquisitions ratio 160Mbps others(1mbps 12Mbps 40Mbps) Multi-channel J:COM TV My style 100% 100% 80% 80% 60% 40% 20% 35.1 40.6 35.1 40.6 49.8 57.2 49.8 53.2 54.9 60% 40% 20% 67.1 70.3 73.2 75.6 76.3 77.9 0% 0% 1 Jan 月 2 月 Feb 3 月 Mar 4 月 Apr 5 月 May 6 月 Jun Jan 1 月 Feb 2 月 Mar 3 月 Apr 4 月 May 5 月 Jun 6 月 2012 2012 *Multi-channel services :Cable television services excluding J:COM TV My style and BS retransmission services 13 Jupiter Telecommunications Co., Ltd.
1-4-4.Launch of New Services TV Everywhere Service New VOD All-you-can-watch Pack Megapack From May 22, 2012 From June 1, 2012 The The Xvie Xvie (pronounced (pronounced Cross Cross V) V) service service allows allows VOD VOD to to be be enjoyed enjoyed via via Smartphone, Smartphone, tablet tablet or or PC PC Unlimited Unlimited viewing viewing of of over over 3,000 3,000 titles titles for for monthly monthly usage usage fee fee of of 980 980 yen yen (includes (includestax) tax) Delivering comprehensive programming across a range of genres Lineup includes over 3,600 VOD titles, including movies, dramas and cartoons (increase to 8,000 titles planned for the end of 2012) Western Movies Dramas Smartphone top screen Able to enjoy VOD contents indoor and outdoor via smartphone, tablet or PC Serial program can be viewed via other devices Spiderman (C) MOTION PICTURE (C)2002 COLUMBIA PICTURES INDUSTRIES, INC. SPIDER-MAN CHARACTER TM AND (C)2002 MARVEL CHARACTERS, INC. All RIGHTS RESERVED. Japanese Movies Cartoons 14 Jupiter Telecommunications Co., Ltd. (C) 2008 Handsome suit
1-4-5.Planning and Production of Original Dramas First three-company Joint Production of the original drama: Keigo Higashino s black humor Warai [Laugh] Series A trump card in revolutionizing distributed drama Three stories from Keigo Higashino s collections of short stories have been selected for dramatization. Original drama productions bring together a stellar cast and crew. Chapter 1: August Chapter 2: September Chapter 3: October Chapter 1 Chapter 2 Chapter 3 Business Structure Video distribution to smartphones Motemote Spray From Kokushou Shousetsu, Keigo Higashino Cast: Gaku Hamada, Kana Kurashina, Masahiko Tsugawa Director: Yutaka Mizuochi Aru Ji-san ni Senkou wo From Kaishou Shousetsu, Keigo Higashino Cast: Takashi Sasano, Masaki Suda, Sae Miyazawa (AKB48) Director: Soichi Ishii Yuukai Denwamou From Dokushou Shousetsu, Keigo Higashino Cast: Hiroshi Mikami, Mimura, Kenjiro Ishimaru Director: Tsutomu Hanabusa Contents planning and production Contents production Order placement Jupiter Entertainment Co., Ltd.* (Owns copyright) Provision of contents Provision of contents Alliance Note: Jupiter Entertainment Co., Ltd., and Asmik Ace Entertainment, Inc., are fully owned subsidiaries of Jupiter Telecommunications Co., Ltd. Distribution of VOD contents 15 (C) Keigo Higashino/Shueisha KDDI Jupiter Entertainment *Japanese subtitles and audio provided for the visually and hearing impaired Jupiter Telecommunications Co., Ltd.
1-4-6.Promotion of Stronger Programming through Integration of Channels Progress of Channel Integration Main Results Guaranteed prime contents Broadcasting rights from April 2012 obtained from the U.S. Golf Channel Men s European Tour U.S. LPGA Tour (10 tournaments) Golf Central (news program) Ryder Cup (European venue only) Three golf lesson program titles Increase in number of households with viewing access Japan s only channel devoted to golf Strengthen the lineup of major US, Europe and Japan tournaments; Expanded Independent hookups March 31, 2012: 7.23 million households April 30, 2012: Approx. 8 million households Increase in revenue and viewing rate Increase in program sales J:COM ratings substantially outperforming the previous year since April 16 Jupiter Telecommunications Co., Ltd.
1-4-7.J:COM Wonder Studio Opens in TOKYO SKYTREE TOWN Concept Pioneering and exciting: an unprecedented venue One of Japan s biggest monitors Events of images by using four 103-inch monitors everyday Japan s first VR simulator systems Japan s first advanced imaging systems Live broadcasts of the community channel Tsunagaru GO!GO! from TOKYO SKYTREE TOWN Live 5- to 10-minute broadcasts from J:COM Wonder Studio every weekday Xvie VR simulator See-through display Over 100,000 visitors in one month since the opening. (As of July 22,170,000 visitors ) 17 Jupiter Telecommunications Co., Ltd.
1 Explanation of Performance and Financials 2 Major Initiatives for 2nd Half Appendix 18 Jupiter Telecommunications Co., Ltd.
2.Initiatives in Second Half of FY2012 CATV Business Media Business Improvement of ARPU trend Broaden earnings base Launch new products and continue promotion of cross- sales and Smart Value Construct Wi-Fi access points Expand sales of Internet products using new TV products and au Smart Value as trigger Capital Alliance with the SBS Group Company in South Korea Launch news-making and popular contents New Business Scheduled to commence in stages from 4Q Cost-Cutting Initiatives Promote cost-cutting project Review 2H cost projections, etc. 19 Jupiter Telecommunications Co., Ltd.
2-1.Initiatives to Improve ARPU trend Launch new products New TV products focused on untapped target market segments Main target: retired couples, young single people Improve ARPU compared with that of My style Reduce sales of My style and Digital Compact Expand sales of Internet products Launch home network service Setup computer peripheral devices and home digital terminal Studying monthly fee-based service Maximize existing revenue sources Maximize Megapack (All you can watch package) utilization Strengthen acquisition of Blu-ray HDR Strengthen acquisition of premium channels In addition to above, promotion of acquiring multi-channel service subscriptions and further strengthen ARPU management 20 Jupiter Telecommunications Co., Ltd.
2-2.Broaden the Earnings Base: Collaboration with KDDI In Construction and Operation of Wi-Fi Access Points Overview J:COM will set up public wireless LAN equipment, or Wi-Fi access points, in commercial facilities and other places within its service area as a components of CATV Wi-Fi program*1 KDDI promote J:COM will carry out the marketing, construction, operation, and maintenance of Internet connections and terminal devices and collect usage fees from Wi2 *2 Shops and other buildings where the Wi-Fi access points are installed with have added value without the burden of extra costs *1 The program is for CATV companies nationwide which KDDI and Wi2 jointly develop. *2 Wi2 is affiliated company of KDDI Public Internet network ABC Shop Smarphone Tablet Notebook PC Wi-Fi Installed in commercial facilities, public facilities, large condominium buildings, lobbies, etc. within the J:COM area Potential users of the Wi Fi service Expected Results Wi-Fi Access Point Expansion in new sources of revenue (sales growth) Promotion of approach to untapped markets (small and mediumsized business market) using the business as a trigger 21 Jupiter Telecommunications Co., Ltd.
2-3.Capital Capital Alliance with the SBS Group Company in South Korea J:COM is acquiring a 20% stake in Media Create Co., Ltd., a member of the SBS Group led by SBS, a South Korean terrestrial broadcasting corporation SBS Group SBS Media Holdings Co., Ltd. SBS (Terrestrial broadcasting) SBS ContentsHub Management of copyrights outside South Korea) SBS Viacom SBS Plus SBS Golf SBS Sports SBS Business Network SBS International Media Create Co., Ltd. Company name:media Create Co.,Ltd. Date of establishment: October 27, 2011 Principal shareholders: SBS (59.2%) and Jupiter Telecom (20%) *following J:COM s investment Paid-in capital: 15.0 billion won Business activities: Media advertising representative mainly handling media sales for the SBS Group Timeline Significance of acquisition The agreement for transferring stock was concluded on July 20, 2012. A report has been submitted to examiners of the Korea Fair Trade Commission and to the Korea Communications Commission, and the acquisition of stocks is scheduled for completion in mid- August 2012. The acquisition will strengthen J:COM s relationship with SBS, and promote the following developments: Improve J:COM s procurement of popular content, such as Korean drama programs Enable J:COM to hold events promoting K-Pop-related contents Realize mutual collaboration via the investment channels of J:COM and the SBS Group 22 Jupiter Telecommunications Co., Ltd.
2-4.Launch News-making and Popular Contents Lineup of contents and titles in 2H The 99 Tour de France (C)Yuzuru SUNADA. 12/13 England Premier League Photo:Afro Helter Skelter The Floating castle Ryder Cup 2012 (C)Getty Images Dreams for Sale O-oku Other main programs THE Drama Conference (From August) Ikemen Cooking (From August) Harry Potter series(1-3) (September) King s Speech (October) 23 Jupiter Telecommunications Co., Ltd.
2-5.New Business Initiativesw Services based on J:COM Everywhere concept scheduled to commence in stages from 4Q Home Network Service J:COM Everywhere Concept Studying service plans with aim of October launch Enhancement of one-stop menu Expansion of support to computer peripherals like smartphone, tablet PCs etc. Lifestyle Support Service Preparing for commencement of trials utilizing tablets in part of Kanto and Kansai Shopping assistance, homemaker service etc. 24 Jupiter Telecommunications Co., Ltd.
2-6.Development of Next-Generation Set-Top Boxes J:COM is in the process of developing high-performance set-top boxes that comply with cable TV industry standards There is a need for industry standard next-generation set-top boxes that are not limited to the specifications set independently by existing vendors, but Instead provide improved performance demanded by the cable TV industry J:COM is cooperating with Japan Cable Laboratories in all aspects of determining standard technological specifications Support for the development of set-top boxes by vendors that have approved standardization We plan to release these new products in spring next year etc. Improving the value and attractiveness of TV service User-friendly set-top boxes for all kinds of customers Functions to help audiences find the programs they want to watch + Realizing smart TV functions Connectable to multiple devices including Smartphones and tablet PCs Internet-compatible applications 25 Jupiter Telecommunications Co., Ltd.
2-7.Interim Dividend (yen) 3,000 Interim Dividend 2,500 2,000 Dividend per share Year-end Dividend 1,800 2,500 1,250 Interim Dividend 1,250yen (+350yen) 1,500 1,500 900 900 1,000 500 750 250 500 980 490 490 600 900 1,250 0 FY2008 FY2009 FY2010 FY2011 FY2012(Forecast) 26 Jupiter Telecommunications Co., Ltd.
Appendix Summary of Principal Operations (Previous basis) Explanation of Performance and Financials "HDR" STB with Internal Hard Disk Drive J:COM NET 160Mbps Service Bundling Progress Shift toward Long-term Contracts Number of Households with Service Available by Channel 27 Jupiter Telecommunications Co., Ltd.
Summary of Principal Operations (Previous basis) Subscribing households End of Jun 2011 (Ave. Jan-Jun 2011) End of Jun 2012 (Ave. Jan-Jun 2012) (million) YOY Changes Cable Television 2.77 2.89 4.4 % High-Speed Internet Access 1.76 1.88 7.3 % Telephony 2.09 2.36 13.2 % Total RGU *1 6.61 7.14 7.9 % Total subscribing households 3.52 3.73 6.1 % Bundle Ratio *2 1.88 1.91 0.03pts Average Monthly Churn Rate per RGU 1.03% 0.97% -0.06pts ARPU *3 7,569yen 7,294yen -275yen *1 Total RGU (Revenue generating unit) = Total number of services provided *2 Bundle Ratio = Average number of services received per subscribing household *3 ARPU = Monthly average revenue per unit 28 Jupiter Telecommunications Co., Ltd.
Revenue [U.S. GAAP] 186.5 bn yen (+1.4% +2.5 bn yen) (Billions of yen) 200 150 100 Cable Television 184.0 High-Speed Internet Access 31.4 30.5 26.2 25.8 44.5 46.3 152.6 156.0 Telephony 186.5 Other Topics (YOY Change) Subscription fees :156 bn yen(+2.2%) Increase in total subscribing households and RGUs Increase in VOD revenue (include J:COM TV My style ) Increase in usage of value-added services like Blu-ray HDR Increase in the aggregate impact of acquisitions 50 0 81.8 83.9 Jan-Jun 2011 Jan-Jun 2012 Others:30.5 bn yen(-2.9%) Decrease in revenue related to poor reception compensation of analog service. Increase in the aggregate impact of acquisitions 29 Jupiter Telecommunications Co., Ltd.
Operating Costs and Expenses [U.S. GAAP] 152.2 bn yen (+5.7% +8.2 bn yen) Operating & programming costs Selling, general & administrative expenses Depreciation and amortization (Billions of yen) 150 100 50 0 144.0 152.2 41.5 40.9 35.5 37.6 67.1 73.7 Jan-Jun 2011 Jan-Jun 2012 Topics (YOY Change) Operating & programming costs :73.7 bn yen (+9.9% +6.6 bn yen) Increase in programming-related costs Increase in the aggregate impact of acquisitions Selling, general & administrative expenses :37.6 bn yen (+6.0% +2.1 bn yen) Increase in sales promotion-related expenses and personnel expenses Increase in the aggregate impact of acquisitions Depreciation & amortization :40.9 bn yen (-1.3% -0.5 bn yen) Decrease due to completion of depreciation of some leased assets 30 Jupiter Telecommunications Co., Ltd.
EBITDA* and Operating Income [U.S. GAAP] EBITDA* Operating Income (Billions of yen) 80-7.7%(-6.2 bn yen) -14.2%(-5.7 bn yen) (Billions of yen) 40 60 30 40 81.4 75.2 20 40.0 34.3 20 10 0 0 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 * EBITDA=(Revenue) (Operating and programming costs) (Selling, general and administrative expenses) 31 Jupiter Telecommunications Co., Ltd.
Income Before Noncontrolling Interests and Income Taxes, Net Income Attributable to J:COM Shareholders [U.S. GAAP] Income Before Noncontrolling Interests and Income Taxes Net Income Attributable to J:COM Shareholders (Billions of yen) 40 (Billions of yen) -11.9%(-4.6 bn yen) -10.0%(-2.1 bn yen) 25 30 20 15 20 38.4 33.9 10 20.5 18.4 10 5 0 0 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 32 Jupiter Telecommunications Co., Ltd.
Principal Financial Indicators [U.S. GAAP] Equity Capital Ratio to Total Assets D/E Ratio (Billions of yen) 800 53.6% 54.6% 812.4 811.7 (Billions of yen) 400 0.25 0.20 435.7 443.2 600 300 400 200 200 435.7 443.2 100 109.6 88.5 0 End of Dec 2011 End of Jun 2012 End of Dec 2011 End of Jun 2012 0 Total Liabilities and Shareholders Equity J:COM Shareholders Equity J:COM Shareholders Equity Net Debt 33 Jupiter Telecommunications Co., Ltd.
Consolidated Cash Flows [U.S. GAAP] (Billions of yen) Jan-Jun 2011 Jan-Jun 2012 YOY Changes Major Factors Cash flows from operating activities 57.9 59.4 1.5 Decrease in tax payment Decrease in EBITDA +7.8 bn yen -6.2 bn yen Cash flows from investing activities Cash flows from financing activities -24.7-22.0 2.7-18.4-26.2-7.8 Decrease in capital expenditures +2.7 bn yen Purchases of own stock -5.0 bn yen Repayments of debt -3.8 bn yen Principal repayments of capital lease obligations +1.2 bn yen Free cash flow* 26.3 32.9 6.6 * Free cash flow = (Cash flows from operating activities) (Capital expenditures) (Capital lease expenditures) 34 Jupiter Telecommunications Co., Ltd.
HDR STB with Internal Hard Disk Drive (Units) Total HDR STB Distribution 700,000 600,000 539,900 598,000 636,500 500,000 446,800 400,000 300,000 313,700 200,000 100,000 0 End of Jun 2008 End of Jun 2009 End of Jun 2010 End of Jun 2011 End of Jun 2012 35 Jupiter Telecommunications Co., Ltd.
J:COM NET 160Mbps Service Number of Subscribing Households (Households) 600,000 564,200 500,000 400,000 352,800 300,000 230,500 200,000 148,900 100,000 0 End of Jun 2009 End of Jun 2010 End of Jun 2011 End of Jun 2012 *Number of subscribing households as of the end of Jun 2012 is calculated under the new definition 36 Jupiter Telecommunications Co., Ltd.
Bundling Progress (New basis) Composition of Households by No. of Services Subscribed Households with 3 services Households with 2 services Households with 1 services 100% 90% 80% 38.1% 34.7% 70% 60% 50% 40% 30% 20% 10% 30.9% 29.5% 3 Services +2.0pts 32.4% 34.4% 0% End of Jun 2011 End of Jun 2012 37 Jupiter Telecommunications Co., Ltd.
Bundling Progress (Previous basis) Composition of Households by No. of Services Subscribed Households with 3 services Households with 2 services Households with 1 services 100% 90% 80% 70% 46.9% 46.3% 44.6% 42.1% 40.1% 60% 50% 40% 30% 27.4% 28.0% 27.8% 27.9% 28.6% 20% 10% 25.7% 25.7% 27.6% 30.0% 31.3% 0% End of Jun 2008 End of Jun 2009 End of Jun 2010 End of Jun 2011 End of Jun 2012 38 Jupiter Telecommunications Co., Ltd.
Shift toward long-term contracts (New basis) Shift Shift toward toward long-term long-term contracts contracts (Million) 3.75 3.65 3.55 Total subscribing households The ratio of long-term contracts 3.54 3.58* 33.4% 3.60* 3.69 40% 35% 30% 25% 20% 3.45 3.48 15% 3.35 3.41 10% 5% 3.25 End of Mar 2011 End of Jun 2011 End of Sep 2011 End of Dec 2011 End of Mar 2012 End of Jun 2012 0% * Excluding total number of subscribing households of CATV managed franchises not offering longterm contract services 39 Jupiter Telecommunications Co., Ltd.
Number of Households with Service Available by Channel (As of May 31, 2012) Name of channel/company Classification Equity stake No. of households Name of channel/company Classification Equity stake No. of households Basic channels Movie Plus Jupiter Entertainment Co., Ltd. Women s Channel LaLa TV Jupiter Entertainment Co., Ltd. Consoli dated 100% 7,430K (7,470K) 6,760K (6,770K) AXN AXN Japan Inc. Kids Station Kids Station Inc. Equity method 35% Other 15% 7,520K (7,520K) 8,680K (8,670K) Act On TV JUPITER VISUAL COMMUNICATIONS CO., LTD. GOLF NETWORK Jupiter Golf Network Co., Ltd. J sports 1, J sports 2, J sports 3, J sports 4 * J SPORTS Corporation Channel Ginga Channel Ginga Co., Ltd. Discovery Channel Discovery Japan Co., Ltd. Animal Planet Consoli dated 90.00% Consoli dated 89.41% Consoli dated 80.5% Consoli dated 76% Equity method 50% Equity method 3,510K (3,970K) 8,000K (7,250K) 7,510K (7,410K) 4,190K (4,120K) 6,980K (7,010K) 5,990K (6,120K) Japanese Movie Channel Nihon Eiga Satellite Broadcasting Corp. SAMURAI DRAMA CHANNEL Nikkei CNBC Nikkei CNBC Japan Inc. Optional channels Discovery Japan Co., Ltd. 50% 40 Jupiter Telecommunications Co., Ltd. Other 9.99% Nihon Eiga Satellite Broadcasting Corp. Anime Theater X (AT-X) AT-X, Inc. Other 9.75% Other 12.28% 7,660K (7,620K) 8,210K (8,210K) 7,520K (7,560K) 150K (150K) Source: Companies involved Number of households with service available as of Feb. 29, 2012, are shown in parentheses. * J sports 4 is an optional channel at J:COM systems.