KeyHolder, Inc. Business Introduction
FY12，2023
Updated April 1, 2024

This translation was prepared for reference purposes only. Should there be any inconsistency between
the translation and the original Japanese document, the latter shall prevail.

4712

IndexCorporate Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.3

Our Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.12

Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.21

Corporate Profile＜Company Profile - Top message＞

Message from the President and Representative Director
Thank you very much for your continued support.
Through numerous mergers and acquisitions, we have strengthened our business as a holding group and have also expanded the scale of ourearnings. Although we continue to be affected by a number of external factors, including the still tense international situation, domestic financial market
trends, and ever-changing consumer needs, from the perspective of ensuring future profitability and a stable business structure, we believe that we are
now in a situation where we need to shift to an even more robust organization and business structure.
We have already announced this shift at our company's financial results briefing and general shareholders’ meeting. In the medium to long term...
“Creation of new original IP content”“Creation of video content in line with global standards.”“Developing new sales channels in the advertising field and expanding the digital domain”
We view these three objectives as important issues in our business, where we will focus our resources into each of our subsidiaries in the generalentertainment business, video production business, and advertising agency business to the maximum extent possible. At the same time, by creating
new content that can become a pillar of future earnings, we will carry out major reforms aimed at making great strides in the future.
Even as the social structure and corporate nature continue to change with the times, we will do our utmost to continue to grow as a sustainablecorporate group that contributes to the enhancement of corporate value. As such, I would humbly like to ask for the continued support andencouragement of our stakeholders, including shareholders, investors, and financial institutions, as we pursue these ventures going forward.

KeyHolder, Inc.
President and Representative Director

Yushi Ohide

p.4

＜Company Profile – 1. Corporate Philosophy＞

Group Policy“Creating Abundance”"Building a joyful and abundant future through integrity and constant innovation"

Group Philosophy● All company members operate with the highest of ethical sensitivities and work faithfully to increase
the value of the group.
● Our work is fueled by determination, high aspirations, and a desire to take on new challenges.
● Contributing to society by providing products and services tailored to the changing times.

Company Name Background“Key”
crucial (role, etc.), essential+“Holder”
owner, supporter“Key” refers to the belief in our support of all our stakeholders (shareholders, clients, employees, etc.) andvarious industry and business development. By "holding" them firmly, our aim is to push a variety of projects
forward, growing with innovation and dynamism into an appealing group of companies. It is with this notion inmind that the name "KeyHolder” was chosen.
p.5

＜Company Profile – 2. About KeyHolder, Inc.＞

About KeyHolder
Company Name：
Office Location：
Date of establishment ：Representative：
Capital：End of Fiscal Year：
Subsidiaries：
Number of Employees ：Stock：
Listed stock exchange ：KeyHolder, Inc．
3-16-3 Higashi, Shibuya-ku, Tokyo, 150-0011
December 25, 1967
Yushi Ohide, President and Representative Director
92,450,000 yen
December
16 (including KeyHolder)535 (including temporary employees)
Number of Shares Issued 18,967,410
Tokyo Stock Exchange Standard(Securities Code: 4712)

Shareholders
As of December 31, 2023

Names

*Including latent shares
Shareholding
ratio（％）

NamesShareholding
ratio（％）

J Trust Co., Ltd.

29.81

J Trust Co., Ltd.

２６．９１

Yasushi Akimoto

7.59

Yasushi Akimoto

11.92

OMOTESANDO CAPITAL Co.,Ltd.

7.23

OMOTESANDO CAPITAL Co.,Ltd.

6.53

KeyHolder, Inc.

2.59

Nobuyuki Akimoto

2.66

SMEJ Plus, Inc.

2.59

SMEJ Plus, Inc.

2.33

Atsushi Morita

1.99

Yoshihiro Akatsuka

2.27

Forthree, Inc.

1.58

Atsushi Morita

1.99

Yoshihiro Akatsuka

1.57

Forthree, Inc.

1.42

DAIICHIKOSHO CO., LTD.

1.55

DAIICHIKOSHO CO., LTD.

1.40

Dentsu Group Inc.

1.17

Makoto Ｔａｋａｚａｗａ

1.25※ Calculated by the total number of issued shares: 18,967,410 shares※ Calculated based on 21,013,500 shares (in the case of full exercise of the 2nd to
4th Stock Acquisition Rights)

p.6

＜Company Profile – 3. Board of Directors＞
Board of Directors
Position

Significant Concurrent Positions

Name

President andRepresentative Director

Yushi Ohide

Director of allfuz,Inc
Director of Zest,Inc.
Director of FA Project, Inc.

Executive Vice President

Atsushi Morita

President and Representative Director of UNITED PRODUCTIONS,Inc.
Director of TechCarry, Inc.
Director of macaroni Inc.

Kenji Kitagawa

President and Representative Director of North River Inc.
Director of HEE Company Inc
Director of bijoux, Inc.
Director of 10ANTZ Inc.

Chairman and Director

Nobuyoshi Fujisawa

President and Chief Operating Officer of J Trust Co., Ltd.
President of J TRUST ASIA PTE.LTD.
Chairman and Director of J TRUST GLOBAL SECURITIES CO., LTD.
Chairman and Director of Gro-Bels Co.,Ltd.
Director of bijoux, Inc.

Director

Akira Kanatani

Director of allfuz,Inc
Director of North River Inc.

Director (External)

Makoto W ashio

Partner of Ginza Daiichi Law OfficeDirector of Onoda Seiki Co., Ltd.
Auditor of Medical Corporation ShomeikaiStanding Corporate Auditor

Toru Arai

Auditor of Zest,Inc.
Auditor of allfuz,Inc

Corporate Auditor (External)

Toshiaki Kurioka

N/A

Corporate Auditor (External)

Mitsunobu Sugino

N/A

Special adviser

Yasushi Akimoto

Director of the Tokyo Organizing Committee of the Olympic and Paralympic Games
Special adviser to Fanplus, Inc.
(Television writer, lyricist, music producer)

Executive Vice President

p.7

＜Company Profile – 4. Skill matrix of the board＞
Skill matrix of the board
Areas of expertise and experience
No.

Name
(Position)

A
Corporate management
andBusiness strategy

B

C

D

Financial accounting
and M&A

Human resources andLabor relations

Legal compliance andRisk management○

1

Yushi Ohide(President and Representative Director)○

2

Atsushi Morita(Executive Vice President)○

3

Kenji Kitagawa(Executive Vice President)○

4

Nobuyoshi Fujisawa(Chairman and Director)○

5

Akira Kanatani(Director)

6

Makoto W ashio(Director (External))○

7

Toru Arai(Standing Corporate Auditor)○

８

Toshiaki Kurioka(Corporate Auditor (External))〇

９

Mitsunobu Sugino(Corporate Auditor (External))○

Definition of each skill

EEntertainment BusinessF
Video & TV program
production business

○
○

○
○

○

○
○

○

○

〇

○

The list above indicates the fields in which each person has more specialized knowledge based on their respective expertise and experience.

A

Corporate management and Business strategy

Contribute to management based on experience in corporate management, business strategy, and important corporate
decision-making

B

Financial accounting and M&A

Knowledge and experience in finance, accounting, and M&A

C

Human resources and Labor relations

Knowledge and experience in human resources and labor relations

D

Legal compliance and Risk management

Knowledge and experience related to legal affairs, compliance, risk management, and internal control

E

Entertainment BusinessKnowledge and experience in Entertainment business (production management, digital content)

F

Video & TV program production businessKnowledge and experience in Video & TV program production business (Planning and production)

p.8

＜Company Profile – 5. Subsidiaries＞
Subsidiaries
allfuz,Inc
Representative: Kenji Katsu, President and Representative Director
Capital: 10,000,000 yen
Business: Advertising planning and development, talent casting business, digital content business, operation and management o f thelive event facility "KeyStudio", etc.
A.M.Entertainment,Inc
Representative: Shunichiro Kato, President and Representative Director
Capital: 2,660,000 yen
Business: Management and agent work for models, celebrities, etc., entertainment and model production business, etc.
Zest,Inc.
Representative: Hiromitsu Takata, President and Representative Director
Capital: 10,000,000 yen
Business: Management business such as operation and management of affiliated artists, utilization development of musical works,
operation and planning of theaters and performance venues, etc.
North River Inc.
Representative: Kenji Kitagawa, President and Representative Director
Capital: 10,000,000 yen
Business: Comprehensive production business for video content, live concerts, etc.
HEE Company Inc
Representative: Takeshi Oyama , President and Representative Director
Capital: 10,000,000 yen
Business: Vehicle business for concerts and events of domestic and foreign artists, private car management contract business, travelbusiness, etc.
FA Project,Inc.
Representative: Yuki Hayashi, President and Representative Director
Capital: 9,000,000 yen
Business: Planning, development and production of entertainment content, planning and production of digital video advertiseme nts,
operation and analysis of advertisements, etc.
UNITED PRODUCTIONS,Inc.
Representative: Atsushi Morita, President and Representative Director
Capital: 80,000,000 yen
Business: Video production business for TV programs, TV dramas, movies, commercials, MVs, production of artist and character
goods, worker dispatch business, etc.
TechCarry,Inc.
Representative: Shu Shimizu, President and Representative Director
Capital: 2,000,000 yen
Business: Rental business of video equipment, etc., post -production business, etc.

p.9

＜Company Profile – 5. Subsidiaries＞
Subsidiaries
TOKYO ROCK STUDIO Co., Ltd.
Representative: Ken Tajima, President and Representative Director
Capital: 9,000,000 yen
Business: Develops production accounting services for global video works and content studios.
ⅿacaroni Inc.
Representative: Gentarou Shimada, President and Representative Director
Capital: 1,000,000 yen
Business: W e are developing a video production business for variety shows, dramas, movies, etc.
bijoux, Inc.
Representative: Eiko Yasumi, President and Representative Director
Capital: 9,000,000 yen
Business: W e are developing a business specializing in holding, managing, and training auditions to discover artists and tale nts.
10ANTZ Inc.
Representative: Makoto Takazawa, President and Representative Director
Capital: 51,444,519 yen
Business: Game application business, platform business, video/IP business Digital marketing business, entertainment tech solution
business, etc.

Equity-method affiliates
Nogizaka46 LLC
Capital: 3,000,000 yen
Business: Management of Nogizaka46, affiliated and former members, management of events, such as concerts, planning of
merchandise, etc.

Whole World Media Inc.
Representative: Shigeru Hataji, President and Representative Director
Capital: 17,600,000 yen
Business: Model management business, social media promotion, marketing, advertising agency business, etc .

yami Co., Ltd.
Representative: Jyousuke Arai, President and Representative Director
Capital: 21,000,000 yen
Business: As a creative company specializing in horror, we carry out planning, development, and promotion businesses that mak e fulluse of technology.

p.10

＜Company Profile – 7. Corporate history＞
1967

December

2017

October

Established as Sigma Co., Ltd. (capital of 500,000 yen, in Setagaya, Tokyo), a company for installing and selling imported entertainment devices.

Changes company name to KeyHolder to accompany the transition into a holding company. Stock listing maintained. Store Management Department becomes ADORES, Inc., a wholly-owned
subsidiary of the company.

March

Transferred all shares of our wholly-owned subsidiary, ADORES, Inc.

April

Established a wholly owned subsidiary, KeyStudio, Inc., for the operation of live business. In addition, KeyProduction, Inc. which is responsible for TV program production business.

July

Established a joint venture, FA Project,Inc. to be responsible for planning and production business of live entertainment contents, with an equity stake of 62%.

2018

December
March
April

2019

July

AugustEstablished SKE, Inc. an entertainment production business that operates and manages idol, talent, etc.
Idol group SKE48, attached to SKE, Inc., started activities as a member of the KeyHolder group.
Converted ” allfuz,Inc" into a 100% subsidiary via a stock exchange.
Acquired all shares of “FOOLENLARGE, Inc.”, which produces TV programs, and made it a wholly owned subsidiary.

Changed the company name of SKE, Inc. to Zest,Inc. and promoted new business.
Merged KeyStudio, Inc. as the surviving company of allfuz,Inc.
EstablishedUNITED PRODUCTIONS,Inc., the largest independent video production company in the industry, integrating the three video production divisions, "FOOLENLARGE, Inc.”,"KeyProduction, Inc." and "Image Field Co., Ltd."

October

Acquired all shares of WISENLARGE, Inc. which dispatches human resources in the video production field, and made it a wholly owned subsidiary.

January

Established a joint venture, "Whole World Media Inc." with "Kadokawa Haruki Office Co., Ltd." (49% investment ratio).

AugustAcquired all shares of "North River Inc.", which conducts total production business such as Movie contents and live events, and made it a wholly owned subsidiary.

October

North River Inc. was spun off to establish "HEE Company Inc", which conducts general charter passenger car transportation business, etc.

DecemberPart of the 2nd Stock Acquisition Rights exercised by both Yasushi Akimoto and Nobuyuki Akimoto as major shareholders.

2020

2021

UNITED PRODUCTIONS, Inc. and WISENLARGE, Inc. were integrated to become "UNITED PRODUCTIONS, Inc. (formerly WISENLARGE)", one of the leading independent video production
January2022

companies in Japan.
Started video production equipment rental business and post-production business at TechCarry, Inc. (formerly UNITED PRODUCTIONS).

April

Moved from the Tokyo Stock Exchange JASDAQ Standard Market to the Tokyo Stock Exchange Standard Market following the reorganization of the Tokyo Stock Exchange's market divisions.

May

TOKYO ROCK STUDIO Co., Ltd., a newly established subsidiary, acquired the business and Started back office operations related to video production and global video production business.

2022

2024

October

Established bijoux, Inc. to hold auditions and conduct management business

January

Acquired 51% of the shares of 10ANTZ Inc. which develops app games and plans, produces, and sells various digital contents, etc., making it a subsidiary.

p.11

Our Business＜Our Group - Subsidiaries＞

Special Adviser
重要な親会社及び子会社の状況
Yasushi Akimoto（Second largest shareholder）

Tokyo Stock Exchange Standard(Securities Code: 4712)
Event planning,rights management,
vehiclesMedia & Eventdevelopment

49% stake
Equity-method affiliate

Own IPartist etc

95% stake

80% stake

Audition
holding/management,
training

Managementbusiness formagazine models,etc., and various
event planning.

Total production
business including
production of video
content for idolgroups and rights
management.

50% stake
Equity-method affiliate

100% stake

artist etc.
Event related

Planning anddevelopment
digital advertising

Managementbusiness including
idol groups,
talents, andprofessional
athletes.

51% stakeHolding auditions
to discover new
artists and talents
and managementbusiness.

Advertising agency
business thatutilizes IP content,a casting business,and live theater
management.

Video production
and related business
100% stake

100% stakeVideo production
business for TV
shows, TV dramas,
movies, etc., andstaffing businessspecializing invideo production.

Rental and sales
business for filming
equipment, and a
post-production
business providing
video editing work.

100% stakeV

A
Plan, develop,
produce content andproducts, andoperate digitaladvertising businessfor SNS.

75.2% stake
100% stake

100% stakeAccounting services
and production
studio for global
video projects andcontents.

Video production
business for TV
shows, TV dramas,
movies, etc.

23.8% stake
Equity-method affiliate

乃木坂46
合同会社

The operatingcompany of idolgroup "Nogizaka46"
and manages its
members and OGs.

100% stake

100% stake

5% stake

E

Advertisement/Promotion
casting, theater
management

E Entertainment business
V Video & TV program production business
A Advertising agency business

Vehicle and transportbusiness for artists
and talents, etc. a
private vehicle
management
contract business,and travel business,
etc.
Vehiclebusiness

Planning anddevelopment
business for app
games, platform,and digitalmarketing.

Managementbusiness and agent
business formodels, talents, etc.

app games
platform

Own IP
Actor, model, etc.

A creative company,
specialized inplaning anddevelopment forhorror contents.

Video production
and related businessp.13

＜Our Business - Entertainment Business＞

E Entertainment Business
Our entertainment business mainly develops the activities of artists, celebrities, idolgroups, athletes, etc. (collectively referred to as "IP") belonging to or related to the Group.
Specifically, in addition to multifaceted management, such as planning and holding live
performances and events for these IPs, as well as appearances in TV programs andevents hosted by other companies, we are in the process of developing a music copyrightbusiness and so forth to generate earnings opportunities. We are striving to create ourmain sources of income from ticket sales and performance fees for live performances andevents, royalties from music and portrait rights, as well as merchandising, such asplanning and sales of related goods.

Subsidiaries that make up this business:
Zest,Inc.
・Management business for artists belonging to various groups, such as the female idolgroup "SKE48", the five-piece rock band "Novelbright", etc. as well as other activities
including planning and holding live events, selling merchandise and so forth.
・Concluded a media management (business alliance) contract with a former
Japanese national team handball player and a current Japanese national soccer
player.

Nogizaka46

North River Inc.
・Planning and operation of performances, such as live performances and events related
to the female idol group "Nogizaka46", and merchandising (MD) business for related
goods.
・Recording and editing of live videos of idols and idol groups outside the company,
planning and production of video content.

A.M.Entertainment,Inc (A.M.E)
・Management business for talents and models who are active in various fields, such as
TV dramas, movies, and stage performances.

SKE48

HEE Company Inc
・Comprehensive provision of transportation and accommodation arrangements in Japanfor live performances and events by domestic and overseas artists and talents.
・Provision of vehicles, hire vehicles, etc. for corporations.
Novelbrightp.14

＜Our Business - Entertainment business, Artist introduction＞

Nogizaka46

SKE48

et-and-Sakura Miyawaki

cumming flavor

Novelbright

Yuna Ego

Bellemule

Nao Furuhata

MARURI

p.15

＜Our Business - Entertainment business, Talent & Actor introduction＞

Rina Ikoma

Yumi Wakatsuki

Ayane Suzuki

Megu Taniguchi

Yui Oguri

Yu Fujii

Rina Kaminosono

Marika Tani

Ryo Mishima

Yuuto Oku

Anri Doi Remii

Shinnosuke Tokuda

Hiroki Motoki

Musashi Suzuki

Yuki Arai

Maya Kisanuki

Wataru Endo

Tomoe Tamura

OshiYuki

p.16

＜Our Business - Video & TV program production business＞

V

Video & TV program production businessIn this part of our business, we mainly concentrate on the planning and production of variety programs for domestic television.
Specifically, our focus is on a wide range of production activities, such as filming, progress management, editing, and location coordination, for various programs ateach TV broadcasting station. We are developing activities, such as planning and putting together proposals.
Subsidiaries that make up this business:
UNITED PRODUCTIONS,Inc.
・Planning and production of various programs such as TV shows, TV dramas, and movies, sports programs
・Planning and production of TV programs for domestic and video distribution platforms
・Investment in film production committee (film production)
TechCarry,Inc.
・Rental and sales business of filming equipment
・Provision of editing (pre-production) business・Short web-based video production for small corporations and local governments
TechCarry,Inc.
・Accounting services and production studio for global video projects and contents© Fuji Television Network, Inc.

©1996-2022 WOWOW INC.

© 1997-2020 Netflix, Inc.

© 1995-2022,
Tokyo Broadcasting System
Television© 1995-2022,
Tokyo Broadcasting System
Television© 1995-2022,
Tokyo Broadcasting System
Television

YouTube© NHK(Japan Broadcasting Corporation）© Fuji Television Network, Inc.

© 1995-2022,
Tokyo Broadcasting System
Television© tv asahi© TV TOKYO Corporation

p.17

＜Our Business - Video & TV program production business, Program production results＞© Fuji Television Network, Inc.

© 1997-2020 Netflix, Inc.

© tv asahi© NTT DOCOMO© tv asahi© Fuji Television Network, Inc.

© tv asahi©NHK(Japan Broadcasting Corpration）© 1995-2022,
Tokyo Broadcasting System
Television

YouTube© TV TOKYO Corporation© TV TOKYO Corporation

KONAMI YouTube© TV TOKYO Corporation© YOMIURITELECASTING CORPORATION© 1995-2022,
Tokyo Broadcasting System
Television© TELASA CORPORATION,© TV TOKYO Corporation© 1995-2022,
Tokyo Broadcasting System
Television© 1995-2022,
Tokyo Broadcasting System
Television© 1995-2022,
Tokyo Broadcasting System
Television© 1995-2022,
Tokyo Broadcasting System
Television© TV TOKYO Corporation © NHK(Japan Broadcasting Corporation）© Fuji Television Network, Inc.

© tv asahi©2023 BLUE.MOUNTAIN©OjiroMakoto・Shogakukan/
Movie「KIMISOMU」Production committee

p.18

＜Our Business - Video & TV program production business, Temporary staffing results＞

p.19

＜Our Business - Advertising agency business＞

A

Advertising agency businessWith regards to the advertising agency business, we are developing a casting business that connects companies with talent and IP, as well as planning,
progress management, and actual production of various advertising projects. Along with having relationships in the form of being seconded to majordomestic advertising agencies, we have a solid track record of activities, such as contributing to campaign planning at convenience stores throughout
Japan, with major convenience stores that are expanding nationwide as clients.
In addition, in the digital advertising department, we are developing planning, production and management of web video advertisements for YouTube andLINE, as well as agency activities for affiliate advertisements.
Subsidiaries that make up this business:
allfuz,Inc・Advertising agency business that utilizes IP content
・Casting business that connects companies with talents and IPs
FA Project,Inc.
・Planning, production and operation of web advertising videos for various clients・Development of affiliate advertising business・Operating digital advertising business for SNS

LIVE EMPOWER CHILDREN
2024 Content goods
7dream.com Co.,LTD© Fuji Television Network, Inc.

“SEVEN SMOOTHIE CAFÉ”
Seven-Eleven Japan Co., Ltd.

「MAKE KEEP MIST」
advertising video©KOSÉ Corporationp.20

Financial Information

＜Consolidated statement of profit and loss ① / Latest full-year consolidated results＞

FY12, 2022

Unit: million yen

Difference fromprevious term

FY12, 2023

◆Revenue

22,062

27,514＋5,452→ ① Entertainment business

10,541

11,318＋777→ ② Video/TV production business

5,321

6,719

＋1,398→ ③ Advertising agency business

5,897

9,371

＋3,474

300

104

（196）

◆Cost of sales

17,82022,957＋5,137◆Gross profit

4,241

4,556

＋315

◆Selling, general and administrative expenses

3,658

3,855

＋197

◆Investment gain on equity method

1,340

1,337

（3）

◆Other operating income

179

60

（119）

◆Other operating expenses

77

133

＋56

◆Operating Profit

2,024

1,965

（59）

→ ① Entertainment business

2,205

2,124

（81）

→ ② Video/TV production business

312

190

（122）

→ ③ Advertising agency business

29

279

＋250

→ ④ Other business

68

18

（50）

◆Profit before Tax

2,175

1,901

（274）

◆Profit Attributable to Owners of Parent

1,877

2,114

＋237

→ ④ Other business●”Investment gain on equity method ” is mainly refers to the incorporation of profits from Nogizaka 46 LLC.

p.22

＜Consolidated statement of profit and loss ② / Recent performance/structure＞■■ Entertainment business■■ Video/TV production business■■ Advertising agency business

FY12, 2023

Advertising agency
business

Others
104
0%

9,371

27,51434%

million Yen

Video & TV
programproduction
business■■ Other business

Operating Profit

Revenue

Advertising agency
business

Unit: million yen

FY12, 2023

279

Others18
1%11%Entertainment
business

Video & TV
programproduction
business

11,318

190

41%

7%

1,965
million Yen
Entertainment
business

2,124
81%

6,719
25%
●Revenue＝●Operating Profit ＝

Of the total entertainment business that accounts for 60%, over 70% is North River's Nogizaka46 related business.
20% are related to artists belonging to Zest, such as "SKE48" and "Novelbright".In video production, he has accumulated
many achievements in the production of variety special programs.

60% of the 75% total entertainment business is Nogizaka46-related profit (North River), and 1,337 million yen of equity
method investment profit (Nogizaka46LLC) is added to this. Artists belonging to Zest are struggling.

p.23

＜Consolidated statement of profit or loss ③ / Consolidated results (last five years) ＞

FY12,
2019

FY12,
2020

FY12,
2021

Unit: million yen

FY12,
2022

FY12,
2023

◆Revenue

4,984

10,70016,78622,062

27,514→ ① Entertainment business

1,612

5,802

10,096

10,541

11,318→ ② Video&TV production business

2,453

3,841

4,421

5,321

6,719

→ ③ Advertising agency business

558

661

1,895

5,897

9,371

→ ④ Other business

359

394

374

300

104

◆Cost of sales

3,682

8,130

13,087

17,82022,957◆Gross profit

1,301

2,569

3,699

4,241

4,556

◆Selling, general and administrative expenses

1,878

3,867

3,943

3,658

3,855

◆Investment gain on equity method

―

2,784

852

1,340

1,337

◆Other operating income

195

214

217

179

60

◆Other operating expenses

38

96

82

77

133

◆Operating Profit

（419）

1,605

743

2,024

1,965

→ ① Entertainment business

（73）

199

1,138

2,205

2,124

→ ② Video/TV production business

（32）

137

129

312

190

→ ③ Advertising agency business

23

（88）

207

29

279

→ ④ Other business

121

（41）

（45）

68

18

◆Profit before Tax

（504）

996

689

2,175

1,901

◆Profit Attributable to Owners of Parent

（848）

1,288

461

1,877

2,114

●From the fiscal year ended December 31, 2019, we have changed our fiscal year end from the end of March to the endof December..
●”Investment gain on equity method = 2,784” in FY12/20 was mainly about 2,088 million yen of negative goodwill gain
associated with the acquisition of North River's stake in Nogizaka 46 LLC.

p.24

＜Consolidated statement of profit and loss ④ / Earnings forecast＞ （Disclosed February 13, 2024）

Unit: million yen

Operating
ProfitRevenue

32,00035000

27,51422,062
2,024
1,965

30000

25000

2,400

3,000

2,500

2,000

20000

16,786

1,500

15000

10000

1,000

743

500

5000

0

FY12, 2021

FY12, 2022

FY12, 2023

Earnings Forecast for
FY12,2024

p.25

＜Consolidated Balance Sheets ① / Assets ＞
Assets

Unit: million yen
FY12,
2019

FY12,
2020

FY12,
2021

FY12,
2022

FY12,
2023

◆Current Assets
Cash and cash equivalents

4,772

3,395

3,607

4,538

5,084

Trade and other receivables

2,747

3,550

5,284

3,506

3,651

Other financial assets

611

580

377

956

987

Contract assets

95

18

62

8

ー

7,242

294

376

449

386

Inventories
Other current Assets

151

164

148

137

231

Total current assets

15,621

8,003

9,857

9,597

10,340Property, plant and equipment

1,975

2,196

1,633

1,152

937

Goodwill

4,300

5,220

5,237

5,215

5,218

720

2,221

1,922

1,959

1,571

◆Non-current assets

Intangible asset

2,309

1,484

1,382

954

934

Investments accounted for using theEquity method

―

7,304

5,157

6,495

7,042

Other financial assets

579

2,443

2,481

799

699

Deferred tax asset

28

3

19

61

317

Other non-current assets

14

24

9

187

152

Total non-current assets

9,928

20,898

17,842

16,824

16,874◆Total assets

25,55028,901

27,70026,422

27,215Investment property

p.26

＜Consolidated Balance Sheets ② / Liabilities ＆ Equity ＞
Liabilities

FY12,
2019

Unit: million yen
FY12,
2020

FY12,
2021

FY12,
2022

FY12,
2023

◆Current liabilities
Trade and other payables

1,608

7,792

3,249

3,077

3,195

Bonds and borrowings

2,543

726

1,381

845

881

Other financial liabilities

501

751

1,720

581

642

Income tax payable, etc.

134

130

190

175

25

Provisions

165

142

32

—

99

Contract liability

187

58

550

444

319

Other current liabilities

125

190

195

244

292

Total current liabilities

5,266

9,793

7,321

5,369

5,458

Bonds and borrowings

6,417

2,586

1,749

1,148

1,081

Other financial liabilities

2,588

1,706

1,205

1,082

690

Long-term employee benefits

―

239

256

146

178

Provisions

119

161

183

166

151

Deferred tax liabilities

232

708

589

514

135

Total non-current liabilities

9,357

5,403

3,985

3,058

2,237

◆Total Liabilities

14,624

15,197

11,306

8,427

7,695

◆Non-current liabilities

Equity

FY12,
2019

FY12,
2020

FY12,
2021

FY12,
2022

FY12,
2023

◆Equity
Share capital

4,405

5,308

6,566

92

92

Capital surplus

6,146

6,951

8,198

14,66014,667Retained earnings

522

1,662

1,955

3,645

5,564

Treasury shares

（2）

（21）

（29）

（94）

（440）

Other components of equity

71

92

77

86

73

11,142

13,994

16,76918,38919,957

Total equity attributable to owners of parent
Non-controlling interests

（216）

（289）

（375）

（395）

（437）

Total equity

10,925

13,704

16,393

17,994

19,519◆Total liabilities and equity

25,55028,901

27,70026,422

27,215p.27

＜Consolidated statement of cash flows ① / Cash flows from operating activities ＞

FY12,
2019

FY12,
2020

Unit: million yen

FY12,
2021

FY12,
2022

FY12,
2023

◆Cash flows from operating activities
Profit (loss) before tax

(504)

996

689

2,175

1,901

Profit (loss) before tax from discontinued operations

365

228

―

—

—

Depreciation and amortization

575

874

1,017

988

1,012

Impairment loss

―

―

55

16

104

Stock compensation costs

14

44

23

—

—

Interest and dividend income

(10)

(15)

(7)

(16)

(5)

Interest expenses

133

141

62

51

45

Equity in net income (loss)―(2,784)(852)(1,340)(1,337)

Gain on sales of equity in investments processed under the equity method

―

―

―

—

—

(159)

2

(1)

(46)

(2)

Loss on retirement of fixed assets

2

32

15

29

0

Changes in the fair value of financial Instruments measured atfair value through profit or loss

84

556

2

(152)

24

Stock swap gain

―

(246)

―

0

―

Gain on sales of fixed assets (increase)

Gain on sale of shares in affiliated companies (increase)

―

―

―

―

―

Decrease (increase) in trade and other receivables

507

279

(498)

433

(158)

Contract asset change amount (increase)

(93)

19

(44)

53

―

Change in inventory (increase)

(172)

588

(82)

(73)

63

―

―

(1,423)

—

—

(547)

1,272

493

(130)

114

Increase (decrease) in Contract Liabilities

42

(81)

492

(106)

(124)

Increase (decrease) in deposit

―

17

1,020

(30)

(31)

Increase (decrease) in reserve

(29)

(51)

(87)

(32)

80

Increase (decrease) in income tax receivable
Increase (decrease) in trade and other payables

―

30

17

(110)

32

(47)

162

85

60

44

Subtotal

161

2,069

976

687

1,762

Payment amount of corporate income tax

(48)

(392)

(373)

(462)

(786)

Increase (decrease) in debt related to retirement benefits

OthersRefund amount of corporate income tax

―

―

73

1,423

96

◆Net cash provided by (used in) operating activities

113

1,677

676

1,649

1,072

p.28

＜Consolidated statement of cash flows ② / Cash flows from investing activities ＞

FY12,
2019

FY12,
2020

Unit: million yen

FY12,
2021

FY12,
2022

FY12,
2023

◆Cash flows from investing activities
Decrease (increase) in time deposits

(502)

0

200

(590)

(40)

Expenditures for the acquisition of tangible fixed assets

(454)

(117)

(107)

(77)

(113)

(1,043)

―

―

—

—

Payment of partial gold related to acquisition of tangible fixed assets
Revenue from sales of tangible fixed assets

38

29

122

341

2

Purchase of intangible assets

(8)

(19)

(57)

(413)

(0)

Payment for acquisition of investment property

(2)

(9)

(0)

—

—
—

Proceeds from sale of investment property

166

―

―

406

Payment for acquisition of investment securities

(19)

(954)

―

(117)

—

Revenue from sales of investment securities

583

14

―

1,929

100

Payment of capital investment

(119)

(10)

(65)

(16)

(19)

Expenditure from insurance reserve fund

―

(81)

(58)

(39)

(84)

Income from cancellation of insurance reserve

―

43

53

76

—

Payment of security deposit

(67)

(156)

(83)

(7)

(163)

Income from collection of security deposit

147

27

81

23

175

Payment for fulfillment of asset retirement obligations

(43)

(0)

(22)

(21)

(2)

Outlays for short-term borrowings

(179)

―

―

—

—

Income from collection of short-term debt

32

―

―

—

—

Revenue from sales of subsidiaries' shareswith change in scope of consolidation

―

―

―

—

—

Interest and dividend income

10

15

3,007

16

795

Payments for acquisition of businesses

(93)

―

(27)

—

11

Payment of deposit for share acquisition

―

―

―

—

—

Expenditure for share exchange of subsidiary shares due to change in consolidation scope

―

(937)

―

—

—

Payment for acquisition of shares in subsidiaries ｒesulting in change
in scope of consolidation

(752)

―

(3,000)——

Proceeds from acquisition of shares in subsidiaries
resulting in change in scope of consolidation

478

1,225

―

(2)

—

Purchase of investments accounted for using equity method―(2,108)―——Proceeds from sale of investments accounted for using equity method

―

―

―

2

—

2

11

14

13

2

(1,826)(3,028)

57

1,523

665

Others◆Net cash provided by (used in) investing activities

p.29

＜Consolidated statement of cash flows ③ / Cash flows from financing activities ＞

FY12,
2019

FY12,
2020

Unit: million yen

FY12,
2021

FY12,
2022

FY12,
2023

◆Cash flows from financing activities(1,158)

(318)

500

(500)

—

Proceeds from long-term borrowings

3,677

766

480

600

950

Repayments of long-term borrowings(1,432)(1,485)(1,112)

(986)

(973)

50

200

―

—

—

(80)

(75)

(49)

(250)

(28)

Income from issuance of new shares

―

299

497

—

—

Payments from non-controlling interests

―

―

―

—

—

Payments for purchase of treasury shares

(0)

(18)

(7)

(281)

(384)

Net increase (decrease) in short-term borrowings

Proceeds from issuance of bonds
Redemption of bonds

―

0

0

0

—

Dividends paid

(252)

(279)

(217)

(223)

(218)

Payments for repayment of lease liabilities

(394)

(609)

(611)

(596)

(571)

―

1,495

―

4

42

Income from the sale of treasury stock

Income from exercising stock acquisition rights
OthersCash flows from financing activities

3

―

―

(9)

(1)

412

(26)

(521)

(2,241)(1,192)

Cash and cash equivalents of conversion difference

―

―

―

—

—

Net increase (decrease) in cash and cash equivalents(1,301)(1,377)

212

930

545

Cash and cash equivalents at beginning of period

6,073

4,772

3,395

3,607

4,538

Cash and cash equivalents at end of period

4,772

3,395

3,607

4,538

5,084

p.30

Cautionary Note Regarding Forward-Looking Statements
Descriptions of performance forecasts and future forecasts in this material are forecasts based on available information and include
potential risks and uncertainties. Therefore, please be aware that actual results may differ from these performance forecasts due tovarious factors. This material is not intended to solicit investment. Please make investment decisions based on your own judgment.