01

TBS Group’s Six Materialities
Key issues identified to create and deliver “wonderful moments”

01

02

Create original content loved
across the world

03
Fulfill “social mission”
as a media group

04

05

Deliver wonderful “moments” to
all the lives on the earth

Deliver wonderful “moments” forall with whom we work together

Innovate work throughdevelopment and utilizationof technology

06
Strengthen governanceas a responsible company

To achieve the “TBS Group VISION 2030” and the “TBS Group Medium-Term Management Plan 2023”
announced in 2021, we discussed what we should do in 2022 and identified six materialities, three
in the business domain and three in the sustainability domain. → p.20

02

Materiality 04

Deliver Wonderful “Moments” to All the Lives on the Earth

The TBS Group has been working to achieve the SDGs under the slogan “Make the Earth Smile.”
We will become “a starting point for influencing society” by taking advanced measures to address global warming and climate change.
As a first step toward setting and implementing goals toward making zero carbon a reality, which is one of our materialities, we establishedthe following targets.

FY2023

Achieving carbon neutrality at the
TBS Broadcast Center , Akasaka Sacas Cultural Facility , and Midoriyama Studio

The targets of this endeavor are Scope 1 (direct emissions resulting from fuel combustion, etc.) and
Scope 2 (indirect emissions resulting from the use of purchased electricity, etc.) emissions.

“Information Disclosure Based on TCFD Recommendations” with regard to CO2 emissions reduction initiatives and medium- to long-term targets → p.64

03

Contents (Overall Report Structure)What“wonderful moments”
will we provide,
How will
we create and deliver
them,

p.01
Corporate Philosophy
Brand Promise

p.02

p.05

p.14

p.15

p.16

p.23

p.24

p.28

p.31

p.33

p.34

TBS Group
VISION 2030 ProgressSocial Mission andComplete Trust

Growth Trajectory

p.52

Strategies for BusinessMedia Content Businessp.59

And how will we
continue to grow?

From each moment, a better tomorrow.

The purpose of this report is to provide a systematic understanding of what kinds of contents and services the TBS Group plans to create and provide to deliver “wonderful moments”
as well as improve its corporate value and sustain growth.
Click the boxes on each of the following pages to access them directly.

Message fromthe Head of
ESG Strategy

Medium-Term
Management Plan
2023 Update

Message fromthe Head ofFinance Strategy

Value Creation Process

p.54

Strategies for Business

p.60

Reinforcing
the Sustainability
Promotion System

Compliance

Analysis ofFinancial Position andBusiness Results (MD&A)

TBS Group
Code of Conduct

p.100

Financial and
Non-Financial Datafor the Past 10 Years

TBS Group
At a Glance

Message fromthe Head ofCompetitive Strategy

p.06

TBS Group over
FY2021

p.17

Message fromthe Head ofGrowth Strategy

p.07

Message fromthe President

p.18

EDGE Strategy forContent Expansion

p.19

AkasakaEntertainment City
Plan

p.20

TBS Group
Materialities

Financial and
Non-Financial
Highlights

Maximizing Content
Lifetime Value (LTV)

p.36

Human
Capitalp.40

Intellectual
Capitalp.46

Manufactured
Capitalp.47
Social Capital

p.56

Strategies for Business

Real Estate andOther Business

Lifestyle Business

p.83

p.82

p.94

TBS Group’s
Six Materialities

p.61
Achieving the SDGs

p.85

Group Internal Control
and Risk Management

p.102
Company Profile

p.64

Information
Disclosure Based on
TCFD Recommendations
p.90

Dialogue Session
between Chairman
and Outside Board Director

p.103
Stock Information

p.70

Environmental
Initiatives

p.73
Social Initiatives

p.74

Corporate Officers
Skill Matrix
Corporate Governance

Editorial Policy
While the report covers the TBS Group from April 2021 to March 2022 in principle, events
before and after this period are also included to describe important and current matters.
In compiling the report, we referred to disclosure indicators such as the Value Reporting
Foundation’s International Integrated Reporting Framework, Ministry of Economy, Tradeand Industry’s Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation, and the Task Force on Climate-related Financial
Disclosures (TCFD).

04

TBS Group At a Glance
Businesses ranging from broadcasting to content creation, culture, lifestyle, and real estateMedia Content Business/
Real Estate and Other Business

Lifestyle Business

TBS TELEVISION, INC.

CP Cosmetics Inc.

(one company)(three companies)

StylingLife Holdings Inc.
LightUp Shopping Club Inc.

Media Content Business(13 companies)

TBS RADIO, Inc.
BS-TBS, INC.
TBS SPARKLE, Inc.
TBS GLOWDIA, Inc.
TBS ACT, INC.
CS-TBS, INC.

Real Estate and Other Business(five companies)

Akasaka Heat Supply, Co., Ltd.
TBS Kikaku Co., Ltd.
TBS Sunwork, Inc.
TBS HEXA. Inc.
Midoriyama Studio City, Inc.

SEVEN-ARCS Co., Ltd.
TC Entertainment Incorporated
TBS International, INC.
TBS MEDIA RESEARCH INSTITUTE Inc.
NICHION, INC.
MANGA BOX Co., Ltd.
THE SEVEN, Inc.
(Company name changed from THE Factory, Inc.
on August 1, 2022)

22 companies total

05

TBS Group over FY2021
TBSグループ この 1 年
Providing wonderful “moments” for everyone through timeless content and services
10/1

7/22-11/14

4/1
TBS ACT, INC.
began operations

11/1-7

Established Sustainability Committee
Formulated Sustainability Policy“Make the Earth
Smile HOUSE” held at
Akasaka Sacas

1/7
Established a new overseas
strategic company,
THE Factory, Inc. (namechanged to THE SEVEN,
Inc. on August 1, 2022)

Conducted thethird phase of the“Week to Make theEarth Smile”

10/6
Announced the globally simultaneous
distribution of three new titles on Netflix

4/26-5/5

4/15
The planning and development
of TBS x ZEE “The Spiceman Trails
Asia” makes progress

Conducted the second SDGs
Campaign “Week to Make
the Earth Smile”

11/11

8/26
TBS’s unique remote appearance system,“TBS BELL” received the “Technology
Development Award” from the Motion Picture
and Television Engineering Society of Japan.

Announced a notice
regarding decision ofmatters related to acquisitionof treasury stock andcancellation of treasury stock

10/29
Co-developed virtual game software with
Bandai Namco Amusement Inc.

2021
April

2/10

Announced endorsement of
TCFD Recommendations

2022
May

5/13
Midoriyama Studio announced
the goal of using 100% actual
renewable energy in FY2021

June

5/14
Announced TBS Group VISION
2030 and TBS Group MediumTerm Management Plan 2023

6/15
Signed a strategic partnershipagreement with CJ ENM, ageneral entertainment company
in Korea

July

August8/30
First integrated
report, “TBS Group
Integrated Report2021” published

September

9/2

October

11/18

TSE’s new market “Prime
Market” segment selected

12/17

November

December

2-chome/6-chome Akasaka district development
plan approved as a National Strategic Special Zone
plan

January

February

March

3/30
“Takeshi’s Castle” to be streamed
exclusively worldwide on Amazon Prime
Video in 2023

Launched an original new ticket service,“TBS Ticket”

9/17
Subtitle generation systems Mojipa
and TBS BELL both received theAward for Excellence in theTechnology Category of the 2021
Japan Commercial Broadcasters Association (JBA)

12/25
70th anniversary of TBS Radio
going on the air

Number of COVID-19 infections nationwide

April 2021

Tokyo Olympics

Tokyo Paralympics

The 49th Lower House
general election

January 2022

Beijing Olympics

Beijing Paralympics

Russia invasion of Ukraine06

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Message from the President

To secure complete trust, we will provide“wonderful moments” through original content
that goes beyond the framework of broadcasting<The social significance of TBS>We will continue to provide “wonderful moments” bydisseminating accurate information

Takashi Sasaki
President & Representative Director
TBS HOLDINGS, INC.
TBS TELEVISION, INC.

Message fromthe President

What is the social significance of TBS, which reports the news on
the wars and natural disasters happening in the world today? Ifeel that the news of Russia’s invasion of Ukraine has brought thissignificance back into focus.
The “wonderful moments” that TBS wants to provide are
essentially the things that move people’s hearts and put them atease. However, the “moments” of war are the exact opposite ofthat. War steals people’s smiles and harms them. We would liketo provide “wonderful moments” to heal those harmed by war.
We would like to use the media to stop war.
I believe our purpose and social significance lies in playing arole that gives peace of mind by communicating the correct “moment” accurately.
The prerequisite for playing this role is securing “complete
trust” → p.23 . We will continue to broadcast accurate information without distorting the facts and build up new trust eventhough it takes time. We are committed to always acting to protect the lives and property of our viewers, even when struck by

08

Message from the President

a major disaster. This is what we have learned from the mistakes
and errors of the past. I believe that when each and every one ofus has this commitment, we can create “moments” that lead to“complete trust” in all areas, including the internet.
TBS content goes beyond television and radio, and includes
movies, stage performances, streaming, and even education andretail. It is precisely in times of turmoil that our value also lies incontinuing to be a company that makes people smile with “relaxing moments” and provides “wonderful moments” beyond
the framework of broadcasting using our original content loved
across the world.

<Progress of VISION 2030 and Medium-Term
Management Plan 2023 over the past year>
A new “expansion” will take shape throughenhancement of quality and transformation of
ourselves
In terms of business performance in FY2021, the first year of TBS
Group VISION 2030 (“VISION 2030”) → p.14 , and the TBS Group
Medium-Term Management Plan 2023 (hereinafter the “MTMP2023”) →p.15 , which we announced in May 2021, operating
profit exceeded ¥18.5 billion, the target for FY2023, which is the
final year of the MTMP, recording the highest level since FY2009,
when the Company became a holding company. Therefore, we
updated the existing MTMP 2023, while keeping FY2023 as its
final year. We are retaining the quantitative targets for FY2030,
which are the goals of VISION 2030, and will review them basedon the fruitfulness of the seeds we sow when we come to an-

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

nounce MTMP 2026, which is Phase 2 of VISION 2030.
One reason why we were able to exceed the targets of MTMP
2023 by more than expected was the strong performance of
spot sales revenues. We believe that one of the factors in this is areassessment of the value of television commercials in terrestrial
broadcasting. It is said that the effect of television commercials
in terrestrial broadcasting is difficult to measure. When TBS andother commercial broadcasters conducted surveys on the appeal,
impact on purchasing, and other aspects of television commercials and measured their effectiveness, it was found they wereactually lower-priced by unit and more effective than online commercials. While we think the trend of economic recovery from the
COVID-19 pandemic is also a factor, it can also be argued it is theresult of a rapid reassessment of the value of television commercials by customers.
At a time when people are losing interest in television, theTBS Group will continue to reconstruct its value while focusing
in particular on developing the next generation of viewers andexpanding the appeal of television, taking responsibility for thequality of programs and commercials we provide. As for our specific competitive strategies, we will reorganize and strengthen
regular morning shows and prime time variety shows, which had
been key issues in terms of profitability, and also nurture young
creators to further accelerate production of content that can develop the next generation of viewers. Moreover, we will enhancethe “power and value of broadcasting” and offer proposals forsociety through large-scale sports events and SDGs WEEK → p.61 .
We will also log television commercials and promote content targeting by reanalyzing and utilizing viewer data to make propos-

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

als aligned with the needs of advertisers. We will raise the qualityof program production to enhance its appeal targeting the maleand female individuals in the four to 49-year-old demographicthat TBS now considers the “new Family Core.” If the value of
television commercials can get recognized, we think revenue
from program sponsorship and spot advertising will increase.
Under VISION 2030, we are aiming for a non-broadcasting
business sales ratio of 60%, and the EDGE (Expand Digital Global
Experience) → p.14 strategy forms the foundation of our growthstrategy for achieving this. One year after we set out VISION
2030, we have been steadily and swiftly implementing this initiative. Companies we had never considered before have been
spontaneously reaching out to us, and our partnerships withoverseas companies have also started to grow. I have been reminded that once we begin to transform ourselves, those around
us also respond to the change.
For example, in the globally expanding area of electronic
manga, we established Studio TooN, a new webtoon production
company in South Korea, in cooperation with NAVER WEBTOON
Ltd., a group company of South Korean IT major NAVER, andmanga production company SHINE Partners. The new company
brings together the outstanding creative capabilities of Japanand South Korea to develop original works for the world, which it
will roll out in English-speaking countries and Asia, in addition to
South Korea. We will strive to maximize the value of this venture
through visualization at TBS.
As a further mechanism based on TBS, we have established
THE SEVEN, Inc. (company name changed from THE Factory, Inc.
on August 1, 2022) → p.18 , a new company for our overseas

09Message from the President

strategy to serve as a trading company specializing in the provision of Japanese content to the overseas market, with intellectual
property (IP) business at its core. We have prepared a total budget of ¥30.0 billion to enable us to compete in the global market
and will specialize in the planning and development of high-end
content with the aim of producing two to three global hits within
five years. As our base for promoting this global expansion, we
will build one of Japan’s largest studios with global-standard
specifications in Midoriyama to deliver studio functions that will
be capable of recording 4K HDR and other high-definition image
standards and 5.1 surround sound. In addition to opening up
new sales channels, we will not only sell the formats of programs
such as “Takeshi’s Castle” and “SASUKE/Ninja Warrior” → p.35 ,which are very popular overseas, but will also focus on employing
and developing talent in order to sell newly developed content

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

to Netflix, Amazon Prime Video, Home Box Office (HBO), and the
BBC in the UK, etc.
Video streaming companies such as Netflix are simultaneously our rivals and our partners. Netflix has been streaming“JAPAN SINKS: People of Hope” on the same day as its terrestrial
broadcast, and will also exclusively stream new TBS drama “Rikon
Shiyoyo (Let’s Get Divorced)” worldwide in 2023. We take thesame approach to terrestrial television stations, with the desire toadopt a flexible position on collaboration as we do with TVer, ourfree streaming service, while also competing at times.
In the Experience area of our EDGE strategy, we have established the Real Estate Strategy Division to produce content andspace. The goal is to enable people in the field to work acrossorganizational boundaries toward achieving VISION 2030. The
Real Estate Strategy Division will work across organizationalboundaries because inter-departmental collaboration is vital fortreating and producing real estate as a space rather than simply
managing it as buildings.
The Akasaka Entertainment City Plan, under which we are
not only redeveloping the Akasaka 2-chome and 6-chome areas → p.19 but also working on new urban development that is
integrated with the existing area, is proceeding on schedule forcompletion and operation in 2028. We recently announced the“Shake the World AKASAKA” area concept for disseminating
cutting-edge entertainment from Akasaka to the world.
On July 8, Harry Potter and the Cursed Child opened as thefirst stage show embodying the Shake the World AKASAKA
concept. It is the first Asian production of a live show that isshaking the world, and we have set the challenge of creating a

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Datalong-running production. As soon as visitors leave the subway
station, they can take a “moment” to truly experience the cityof Akasaka immersed in the world of Harry Potter. Our goal is toreach an audience of 500,000 people a year. To allow visitors to
fully enjoy their time before and after the show, we have also
opened a shop and the Harry Potter Cafe in one section of thearea, where visitors can enjoy the world of Harry Potter.
We will expand our business through multimedia uses ofcontent including movies and live entertainment with IP (intellectual property) content at its core, thereby growing into a
global content brand.
My dream is to turn the TBS Group into a corporate entitythat is capable of demonstrating the strength of its brand indiverse areas of people’s lives around the world like The Walt
Disney Company. The Walt Disney Company has been aroundfor about 100 years. With its incalculable intellectual property, I
consider it to be a model for the EDGE strategy and our infinitely
more experienced mentor. In 1995, The Walt Disney Company acquired the ABC television network group, and added abroadcasting station to its platform. However, we started as abroadcasting station, fulfilling our social significance by delivering news as well as entertainment, and we are trying to growthrough a broader range of platforms. Fulfilling our social mission as a broadcasting station is the foundation on which we will
generate solid earnings. I believe the EDGE strategy will come tolife precisely because we have this foundation.

10

Message from the President<Materialities>
Embodying “wonderful moments” through six
materialities
In response to our first integrated report published in 2021, we
received comments and observations from various stakeholders
about the feasibility of our business strategy and explanationsof the path ahead, our quantitative targets, the formulation ofmateriality → p.20 , and other topics. In particular, we ourselves
recognized that the formulation of materiality is an issue, so werepeatedly examined it while raising management awarenessof the issue at meetings of the Board of Directors. In updating
MTMP 2023, we established a total of six priority issues for the
TBS Group to work on with three issues in the area of businessand three in the area of ESG strategy.
The three materialities in the area of business are issues in thegrowth strategy.
The first issue is related to “create original content loved
across the world.” If there is a complicated relationship regarding
IP rights, it may not be possible to turn content into stage showsor movies or to roll it out to the global market, even though terrestrial broadcasting may be possible. Therefore, it is necessary todevelop as much of TBS’s original IP as possible. I feel that awareness of “using IP to earn profits” has become considerably morewidespread at TBS through continual repetition of this message.
In December 2021, we resolved on a total capital increaseof ¥2.5 billion for SEVEN-ARCS Co., Ltd., a Group company that
produces anime. This will enable us to build a value chain fromupstream to downstream in the anime business, based on theplanning and production capabilities of the Movie and Anime

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Division at TBS TELEVISION, INC. and THE SEVEN, Inc., and capitalizing on the development of original works by MANGA BOX Co., Ltd.
and anime production at SEVEN-ARCS Co., Ltd.
In addition, for our future growth, we must transform ourselves from being a media group to being a content group. In order to demonstrate our commitment to this, I am taking the leadin respecting our creators and go as far to say that “the people
who can produce things are the greatest.” Of course, the backyard employees who support the creators are also important.
However, as the skills of creators are becoming more important
than ever before, we treat them as experts and have establishedincentives to reward creators who produce outstanding results.
We place importance on the Life Time Value (LTV) → p.34 of content in addition to ratings as the indicators for incentives. We will
establish management and utilization systems to value content
with longevity which continues to generate profit or enhance thevalue of the TBS brand even when it is no longer being broadcast.
I mentioned “fulfilling ‘social mission’ of a media group” atthe beginning of my message, and one of the challenges we faceis establishing standards and systems to instill the social significance of TBS as a prerequisite for winning “complete trust” inall of our content. I have also stated that as a media group TBS
aspires to be a leading company that can say it is a “pioneering
SDGs station.” Therefore, we have positioned becoming a starting point for influencing society through content as one of ourmaterialities for achieving the SDGs.
With regards to “innovate work through development andutilization of technology,” TBS has a wealth of proprietary technology, including STORM, which can transfer large files at high

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

speed, TBS BELL, a remote appearance system for large numbersof people, and the Mojiko transcription service. We will continue
to promote the development and utilization of proprietary technology to “enhance the quality of content” while also taking up
issues such as the strengthening of analysis infrastructure in order
to become “data driven.” On the other hand, in terms of our materialities in the area of ESG strategy, we have taken up the issuesof delivering wonderful “moments” to all the lives on the earth
and for all with whom we work together and strengthening governance as a responsible company to achieve this.
We have established targets to achieve carbon neutrality(achievement of carbon neutrality at the TBS Broadcast Center,
the Akasaka Sacas Cultural Facility, and the Midoriyama Studio in
FY2023) → p.68 , and we are working to make our targets a reality. At the same time, we will be constantly aware of producing
sustainable content that is Earth-friendly. It is also essential to create working environments that are fair as well as physically andmentally safe allowing people of diverse backgrounds, including
creators, to flourish and to enhance education and training to
upgrade the skills of the people working with us. In terms of governance, in addition to strengthening strategic decision-making
and risk management alongside the transformation of the business portfolio, securing diversity in the skills, gender, and otherattributes of directors and executive officers will be a challenge.
We will aim for the sustainable growth of TBS and society
based on a long-term perspective while speedily addressing thesematerialities. An issue for the future is the formulation of KPIs.
We will continue to examine how we can present indicators thatare easy for all stakeholders to understand.

11

Message from the President<Engaging with stakeholders and uniting theGroup>
Facing the world beyond organizational boundaries,
beyond the framework of broadcasting, and beyond
Tokyo
The transformation into a content group means that the TBS
Group is proceeding along a new path as a corporate entity. As
might be expected with its more than 70 years of history, it is undeniable that TBS has made decisions that are constrained by certain limits in the past. However, to conquer this “moment,” which
is a major turning point for achieving VISION 2030, we must use
zero-based thinking to reconsider both things we previously took
for granted and things we disregarded as being unnecessary, andpresent a commitment to engaging with stakeholders.
To this end, we have been holding inter-group lunch meetings and promoting initiatives to consciously think together as
one group.
The achievements of the group restructuring that we implemented in FY2021 include cost optimization and the securing ofoutstanding human resources. However, above all, I believe it has
accelerated the promotion of understanding for the meaning ofexistence for the TBS Group and the concept of “complete trust,”
with the beginning of moves to go beyond the conventional vertical boundaries in our organization.
With regards to the SDGs, momentum is starting to build forgroup companies to link up with the “pioneering SDGs station”
on their own accord. For example, TBS SPARKLE, Inc. has quantified the volumes of CO2 and waste generated in the program
production process and produced a program that obtained

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Albert Certification → p.70 , a three-level certification based on
the degree of contribution to reductions. I think that our “Weekto Make the Earth Smile” campaign, which disseminates information about the SDGs, is also a BtoC-oriented initiative for theentire Group to make contact and think together with individual
consumers through the media and events.
From our outside directors → p.90 , we receive many opinionswith a third party perspective that trigger significant change inthe company. This includes encouraging a change in the management mindset on the significance of a listed company forstakeholders, including shareholders and investors. They play avaluable role in breaking down our fixed ideas.
TBS is now becoming a group of human resources who think
about things in terms of global standards. We will continue
working to enhance our corporate value as a company that contributes to the development of a sustainable society by providing
the world with “wonderful moments” created through content
and services beyond the framework of broadcasting. Continue to
expect great things from the evolution of the TBS Group.

12Message from the
President

Long-Term Strategy and Medium-Term Management Plan

Long-Term Strategy andMedium-Term Management Plan

TBS Group VISION 2030 Progress

Message from the Head ofFinance Strategy

Value Creation Story

Broadcasting BusinessTerrestrial, BS, CS, radio

l
ta
igi

D

2020

40%

2020

2030
N0
O3
2I0
IOVNISVISTerrestrial, BS, CS, radio

E
EDG
EDG

Broadcasting Business

40%

Performance andCorporate Data

Terrestrial, BS, CS, radio

Achieving“a better
tomorrow”

Growth strategies

Broadcasting Business

Sustainability

Broadcasting BusinessSpreading content boundlessly beyond
the framework of broadcasting, creating
memorable experiences

Terrestrial, BS, CS, radio

Strategies for
Business

bal
Glo

2030
2030

l
ta
iegti
D
k
r
ma

et
arcke*
mn
elrie
pa
Eloxb
G

*
stinngce
BroaEdxcpaerie

60%
60%

Businesses in growth areas+ Non-broadcasting businesses

sting
Competitive strategies
Broadca*Experience = Live entertainment and lifestyleBusinesses in growth areas+ Non-broadcasting businesses

Non-broadcasting businesses*Experience = Live entertainment and lifestyleThrough content and with all stakeholders,the TBS Group will build a happy, sustainable
society where diverse values are respected.

Dramatically increase earnings
in non-broadcasting businesses
by achieving VISION 2030

Non-broadcasting businesses

Updated Medium-Term Management Plan 2023:“Sowing Seeds for Growth in Anticipation of the
Post-COVID-19 Period”
Digital/Global domain: content production for the global market■ Established THE SEVEN, Inc., a new overseas strategic company(name changed from THE Factory, Inc. on August 1, 2022), andcurrently constructs a new studio in Midoriyama

Quantitative targets
Net sales¥390 billion

Operating profit¥26 billion

Experience domain: Utilizing the Akasaka site - Turning it into alocation that delivers “wonderful moments”

Ratio of operating profit
to net sales■ Long-running stage production of “Harry Potter and the CursedChild” began in July 2022

Simplified EBITDA*

6.67%

Growth investment
Non-broadcasting
revenue share:
47.0% of total(up 3.6 points from FY2021)

More than ¥140 billion total over 3 years
Sales of assets assume sales of cross-shareholdings
Proactively seize opportunities for investment in growth,and apply funds from sales of assets to synergistic investments¥39.5 billion*Simplified EBITDA：Operating profit + depreciation

Identified TBS Group’s Materialities

14

Message from the
President

Long-Term Strategy and Medium-Term Management Plan

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Updated Medium-Term Management Plan 2023

Accelerate and promote increased earnings through growthstrategies and advance toward where we want to be in 2030
 hanged the Theme to “Sowing Seeds for Growth in■C
Anticipation of the Post-COVID-19 Period”

 vents Leading to the Update■E

The “TBS Group Medium-Term Management Plan 2023” (hereinafter the “MTMP 2023”) was Phase 1 (FY2021 - FY2023) of the“TBS Group VISION 2030” (hereinafter “VISION 2030”), with thetheme being “focusing on recovery from the pandemic and sowing seeds for growth.” In May 2022, after meeting our operating
profit target in the first year, we formulated the new “Updated
MTMP 2023” with the theme of “sowing seeds for growth inanticipation of the post-COVID-19 period.” We will accelerate
and promote increased earnings through growth strategies andadvance toward where we want to be in 2030.

In terms of what led to the update, there were events affecting
the Group’s earnings, including many industries shifting towarda post-COVID-19 future, the rebound in terrestrial TV advertising,and the diversification of content supply formats. Events that
affected profits included the awareness of the need to containcosts that was brought about by COVID-19 and the accelerationof technological innovation. Events that had a non-financial impact on our Group included the risk of power loss due to natural
disasters, cyberterrorism, and the Russia factor, particularly thesituation in Ukraine.

 reating Synergy by Promoting Competitive and Growth■C
Strategies
To achieve the goals of the MTMP 2023, we aim to generate
positive synergy by pursuing a competitive strategy centered onenhancing broadcasting value and a growth strategy centeredaround “EDGE,” a strategy for expanding content.
As an initiative for enhancing broadcasting value, we will
strive to develop and expand our reach with next-generation
viewers by focusing on individual viewership within the new
family core (males and females 4 - 49 years old). We will also rebuild the value of TV advertising by crafting proposals that satisfy
advertisers’ needs based on utilization of data.

Our Goals for FY2030

Phase1
Sowing Seeds for Growth in
Anticipation of the
Post-COVID-19 Period

Net sales¥550 billion

Operating profit ¥38.5 billion
Ratio of operating profit
to net sales

7.0％

Have revenues fromnon-broadcasting
operations accountUse growth strategies toincrease earnings and sow
the seeds for growth as
we work toward the goals
set in the VISION 2030

2021

Competitive Strategies

2030

Phase2Development and
Growth2024-2026
Nurture the seeds sown in Phase 1
and establish a growthbase for 2030
Achieve new business growth

Phase3for 60% of
total revenues by 2030
Accelerate andMaintain Growth2027-2030
Conduct businesses ingrowth areas
Realize continuous Group growth,and achieve VISION 2030 goals

Growth Strategies

Enhancebroadcastingvalue■Work to enhance broadcastingvalue during the current mediumterm plan period■Give tangible form to the “EDGE”
expansion strategy to achieve“VISION 2030” goals■A ttract the next generation ofviewers and reconstruct the uniquesocial value offered by television■Carry out measures to kickstart
growth in the digital, overseas, live
entertainment, and lifestyle areas■Allocate production costs optimallyand promote multi-use■Strengthen JNN network affiliates

15

Long-Term Strategy and Medium-Term Management Plan

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Message from the Head of Competitive Strategy

We will provide “wonderful moments” as a content company

Shoichi Watanabe
Board Director and Head of Competitive Strategy,
TBS HOLDINGS, INC.
Managing Director,
TBS TELEVISION, INC.

We consider all things that enrich minds and lives and move people’s hearts to be content. The TBS Group’s greatest power lies in
its ability to create content. At TBS, we are a group with content
for providing value that is not swept along by the times or theenvironment and which deepens trust.
Since 2019, TBS has been strategically targeting the new Family Core demographic (male and female individuals age 4 years to49). This is not only because of strong demand from advertisers,
but also our policy to enhance our appeal to win the next generation of TBS fans.

The new Family Core demographic is the key to boostingearnings in the broadcasting business as well as remaining a media organization that is trusted by all generations. In fact, the new
Family Core demographic has been expanding. In FY2021, sales
growth exceeded increase in area allocation as the spot advertising share of the five Tokyo stations exceeded 20% for the firsttime in 13 years.
TBS is pursuing the creation and acquisition of original intellectual property (IP). To give one example, in the 12 slots forregular dramas in the prime time slots (19:00-23:00) each year,
only one was an original drama with no original story in FY2019,
but there will be 11 original dramas in FY2022. Original IP makes
it possible to be idea-oriented in areas such as the content production process, the production of spin-off dramas, and serialization.
It also delivers earnings directly to the TBS Group from expansion
to other media and platforms and the production of character
goods.
In FY2021, TBS’s free streaming ranked first out of the commercial broadcasters for the second year running, both for average monthly number of views at 52.05 million (up 51.7% year onyear) and average monthly number of unique browsers (UBs) at
9.06 million (up 35.8% year on year). Among our free streaming
offerings, the free streaming service TVer, recorded an all-timehigh monthly number of views of over 250 million in March 2022.
Furthermore, in the future, we aim to deliver the most optimal
service to each and every individual user utilizing TVer ID and will
explore data coordination with television broadcasting to provide

unprecedented services with television content as the starting
point. TBS and Japan News Network (JNN) also established thewebsite TBS NEWS DIG Powered by JNN → p.49 in April 2022,
launching a new business for all generations which combines the
speed of online news with the trustworthiness of JNN. Furthermore, TBS Tech Design X, a space where Group employees will
be free to access cutting-edge technology, will start operating at
the beginning of 2023. TBS Tech Design X will be equipped witha cutting-edge environment to enable virtual production using
LEDs and remote appearances using next-generation networks
such as 5G and IPv6. It will tackle a variety of challenges, including real time remote appearances using 3D video. Together with
Midoriyama Studio, one of the largest in Japan equipped withworld-class studios, it will take on the challenge of maximizing thevalue of our content.
The internet has now become a part of daily life, and we areinundated with information. This is the world in which TBS respects diversity, contributes to society, and fulfills a social mission
as a content group that cannot be measured purely in terms of
economic value. We
will provide “wonderful moments” anytime
and anywhere to maximize enhancement ofbroadcasting value.

16

Long-Term Strategy and Medium-Term Management Plan

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Message from the Head of Growth Strategy

EDGE: Transformation and growth, we aim to be a company
that “also” broadcasts among a variety of businesses

Tatsuo Sugai
Board Director, Head of Growth Strategy,
TBS HOLDINGS, INC.
Senior Managing Director,
TBS TELEVISION, INC.

In October 2020, we changed the company name. We changed fromthe previous name TOKYO BROADCASTING SYSTEM HOLDINGS,
INC. to TBS HOLDINGS, INC. The slogan at the time was Beyond
Tokyo, Beyond the Framework of Broadcasting. By changing thecorporate name, we expressed our resolve to make a further leap
forward by maintaining and expanding our value and responsibility as a broadcaster while delivering content and services beyond
the framework of broadcasting, including streaming, movies,
stage performances, and retail, etc. to the world.
We detailed the direction and scale of the growth we are aim-

ing for in the TBS Group VISION 2030 → p.14 , published in May
2021. We will change the revenue ratio of broadcasting business tonon-broadcasting businesses, which is currently 6:4, to 4:6 by 2030.
While we will be expanding the broadcasting business of course,
we have set ourselves the task of achieving even greater growthin non-broadcasting businesses. Under the EDGE strategy, Expand
Digital Global Experience, which will be central to achieving this,and the updated TBS Group Medium-Term Management Plan
2023 → p.15 , we are investing ¥140.0 billion for growth.
For achieving growth, we place most importance on the valuethat is not shown on the balance sheet, which is creativity. We
believe that the sources of our growth are our ability to create
content which has never been seen before and content that looks
at society and gives a voice to the vulnerable, which we have cultivated since our founding 70 years ago, in addition to our ability toprovide our content to many more people and the very existenceof viewers, listeners, and customers who empathize and support it.
To implement the EDGE strategy, we are currently proceeding
rapidly with a number of preparatory steps. These include theconstruction of a new studio with world-class production capabilities (a new studio at Midoriyama Studio) → p.18 , new company
THE SEVEN, Inc. (company name changed from THE Factory, Inc.
on August 1, 2022) specializing in global streaming, a joint venturecompany to develop intellectual property (IP) in South Korea, andthe redevelopment of Akasaka into a base for sending content
to the world (Akasaka Entertainment City Plan) → p.19 . We areinvesting in a new company in the field of art and in the intellectual

training/education sector. We are also aggressively investing so thatcreators from all over the world are free to produce new works.
“The end of the road for broadcasting” is an often-heardphrase due to the declining birthrate and aging population. However, it is precisely because we are in this environment that we areworking to maintain and enhance the value of broadcasting, takevarious measures in non-broadcasting businesses and bring themto fruition as quickly as possible. We will use our outstanding content and service capabilities to jump out of Tokyo and go beyond
the framework of broadcasting. We believe that mega-hit content
is needed to win support in this outside world. Our current target
is for three global hits within five years. Fortunately, we have thepeople and the funds to be able to achieve that.
We are on the move from being a broadcasting company tobeing a company that “also” broadcasts among the variety ofbusinesses. I hope you will be keeping a close eye on our transformation and growth.

17

Long-Term Strategy and Medium-Term Management Plan

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

EDGE Strategy for Content Expansion

Dramatic Growth through “Digital,” “the Global Market,” and “Hands-on Experiences”
Digital/Global Domains

Experience Domain

Shifting toward content creation centered around the global market

Turning Akasaka Base into a locationthat delivers “wonderful moments”

In the Digital and Global domains, we are going to promote
global content distribution on the overseas streaming platform,
since its first launch in FY2021. We will also begin content production that is intended for distribution to the global market, as
well as expand our collaboration with overseas creators.

New overseas strategic company, THE SEVEN, Inc.,*
was establishedA total budget of around 30 billion yen has been allocated forcontent production. The company will specialize in the planningand development of high-end content that targets the global
market, which is markedly different from terrestrial broadcasting.
Within five years, we will create two to three global hits, andusing those IPs as a base, we will expand our business domain bydeveloping movies, live entertainment, and more.
*The company name was changed from THE Factory, Inc. as of August 1, 2022

New Studio in Midoriyama(currently under construction)
One of the largest studios in Japan with specifications that meetinternational standards will be completed in June 2023. It willserve as the production base for THE SEVEN’s high-end content,
and there are plans to add more studios to Midoriyama Studio
City in the future.

Strong performance in video streaming business
continues
In FY2021, TBS content was viewed a total of 624 million times(a 51.7% increase YoY) in the free streaming domain, which
includes free streaming service TVer and others. The number of
unique browsers (the number of non-duplicate users per device)also increased by 35.8% YoY, and both the number of views andthe number of unique browsers were the highest among all terrestrial television stations. We will continue to maintain our No. 1
position in both TV drama series and variety categories.

Akasaka Entertainment City Plan
In the Experience domain, the long-running stage play “Harry
Potter and the Cursed Child” made its Asia debut in July 2022. In
addition, the redevelopment plan of the Akasaka 2-chome and6-chome areas (scheduled for completion in 2028) was approvedin November 2021 as a National
Strategic Urban Planning Building
Development Project under the
National Strategic Special Zone
Plan → p.19 .

StylingLife Group
Sales at Plaza Style Company, which operates the general merchandise retailer PLAZA, have been on the upswing ever since theemergency declaration for addressing the COVID-19 pandemic
was lifted.
As a new attempt in the overseas domain, in FY2021, we established the joint venture BCL China Inc. to manage intellectual
property and manufacturing and sales
rights in China.
In addition, the VISION 2030 project
has been launched with the goal ofgenerating new value for the StylingLife
Group → p.54 .

18

Long-Term Strategy and Medium-Term Management Plan

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Akasaka Entertainment City Plan

Making Akasaka a Wellspring of Cutting-edge Entertainment
TBS has decided on an area concept for the redevelopment planof the Akasaka 2-chome and 6-chome areas and existing areas(TBS Broadcast Center, Akasaka Sacas, TBS Akasaka BLITZ Studio,
TBS Akasaka ACT Theater, Akasaka Biz Tower), which received
approval as a National Strategic Special Zone and are slated tobe completed and operational in 2028. The area concept is “Anentertainment hub that inspires the world. Shake the World.
AKASAKA.” This area concept takes into consideration thephrase “move hearts” contained within the preamble to our
Brand Promise of “From each moment, a better tomorrow,”which is “To create entertaining and inspiring experiences thatmove hearts and minds.” We at TBS, who have been collaborating with the city of Akasaka for 70 years since our establishment, would like to make a concerted effort to pursue thewonderful value of moving people’s hearts. We want to spreadheart-stirring joy, wonder, and delight to people all over theworld in every domain, including food and music. It is also ouraspiration to make Akasaka a wellspring of cutting-edge entertainment.
Moreover, for the next generation of entertainment enthusiasts both in Japan and abroad, we will pursue the following
goals:
1. Turning Akasaka into a hub of global content
2. Turning Akasaka into a place where young creators gather
3. Turning Akasaka into a vibrant and entertaining location
4. Turning Akasaka into a place that is always evolving
With the above goals in mind, we will use concrete experiences tobring Akasaka to life.
The first part of this effort was the stage play “Harry Potter
and the Cursed Child,” which opened on July 8. Ever since its
opening in London’s West End in June 2016, the show has taken
the world by storm, and it will now take on the challenge of its
first performance in Asia.

2021© & ™ Warner Bros. Entertainment Inc. Publishing Rights © JKR. (s22)

2022

2023

2028

Measures to bring Akasaka tolife under consideration

2030

2028
Project

TBS THE MARKET
OPEN

Stage show
Harry Potter and theCursed ChildOPEN

TBS Akasaka
BLITZ STUDIO
OPEN

Redevelopment plan of the Akasaka 2-chomeand 6-chome areas
SCHEDULED TO BE COMPLETED

19

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

TBS Group Materialities

Proclamation of Key Issues to Engage with to Achieve VISION 2030
Create original content loved
across the world

Fulfill “social mission”
as a media group

Innovate work through development
and utilization of technology■ Secure and mentor creators who will produce“Original IP”■ Establish regulations and structures to secure“complete trust” with all types of content■D evelop and utilize proprietary technologies for“content quality improvement”■ Foster corporate culture and policies that support taking
on “challenges”■ Further upgrade “information lifeline” functions inemergencies

 nhance analysis platforms to be “data-driven”■E■ Secure personnel and improve structures for global
market expansion■ Serve as a starting point to influence society throughcontent aimed at “achievement of SDGs”■ Establish management and utilization structures that
increase “Lifetime Value” of content■ Enhance global strategies in role of party responsible for“dissemination of Japanese culture”

Deliver wonderful “moments” to
all the lives on the earth■ Define and implement “carbon-zero” targets■ Promote earth-friendly“sustainable content production”■ Enhance policies for “biodiversity preservation”■D evelop technologies enabling greater efficiencies
and reduced energy usage (cost reductions) in business
operations

Deliver wonderful “moments” forall with whom we work together

Strengthen governanceas a responsible company■ Create working environments that are fair as well as
physically and mentally safe, allowing“peoples of diverse backgrounds” to flourish■ “ Enhance strategic decision-making and risk
management” with focus on business portfolio
reformation■ Improve education and training for“skills improvements” for our staff

 nsure “diversity” in skills, gender, etc., of Board■E
Directors and Executive Officers■ Promote appropriate “supply chain” commitments■ “ Ensure engagement” with shareholders and all otherstakeholders

20

Materialities

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Process for Identifying Materialities

Discussed and Approved by TBS HOLDINGS, INC. Board of Directors
Based on TBS’s corporate philosophy and Brand Promise, in May
2022, we identified and announced the materialities (key issues)that are essential for achieving EDGE, the expansion strategy
established in the TBS Group VISION 2030, as well as promoting
ESG management.
The Sustainability Committee, chaired by the president,
conducted a general review of TBS Group’s business domains,and it studied and reviewed the main disclosure items in the ESG
domain indicated by information disclosure promotion groups,
such as GRI, SASB, and WEF. Upon also reviewing the evaluation
items of major ESG assessment organizations, it listed them inaccordance with the Group’s business characteristics. After a discussion at a board meeting of TBS TELEVISION, INC. attended byfull-time directors and being identified and selected by President
Sasaki himself, TBS HOLDINGS Board of Directors consideredthem and granted approval.
Over a half-year period, much consideration and discussion
was devoted to several questions, all with the 169 SDG targets in
mind, including: Which issues are especially important for TBS toenhance the Group’s value and achieve sustainable growth by delivering the “wonderful moments” to the world? What initiatives
are essential for TBS to continue fulfilling its social mission as amedia company? And how do we become a company that fulfills
its responsibilities to all stakeholders, including shareholders,
employees, and colleagues?
For the identified materialities, we will set specific targets(including numerical targets) to address issues and achieve ourgoals.

TBS Group Materialities Positioning
Corporate Philosophy

The TBS Group aims to deliver timeless content andservices to the world, respecting diverse values andstriving to make a positive contribution to society.

Brand Promise

To create entertaining and inspiring experiences thatmove hearts and minds.
From each moment, a better tomorrow.
Based on our philosophy and Brand Promise...

VISION 2030/Sustainability

Enhance broadcasting value +EDGE strategy/ESG management
To make our VISION and sustainability a reality...

Identify our six materialities

Progress of Materialities Study
November
2021

Sustainability Committee began investigation

December
2021

Consideration of various financial and non-financial
indicators

February
2022

Created list of business domain and ESG domain candidates

February
2022

Brought up for consideration and discussion at a board meetingof TBS TELEVISION, INC. attended by full-time directors

March
2022

Selected and identified by President Sasaki

April
2022

Considered by the Board of Directors of
TBS TELEVISION, INC. attended by full-time directors

April
2022

Discussed and approved by the TBS HOLDINGS, INC.
Board of Directors

May
2022

TBS Group's Materialities identified and announced

Criteria referenced in the ESG domain**GRI Standards: Global Reporting Initiative Standards
SASB：Sustainability Accounting Standards Board
WEF：World Economic ForumSDGs：Sustainable Development Goals

21

Message from the
President

Materialities

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Initiatives to Implement Materialities

Promote Business Strategy, Improved Non-Financial Capital and ESG
Create original content
loved across the world

Fulfill “social mission”
as a media group

Innovate work throughdevelopment andutilization of technology■Secure and mentor creators whowill produce “Original IP”■Establish regulations and structures to secure “complete trust”
with all types of content■Develop and utilize proprietary
technologies for “content quality
improvement”■Foster corporate culture andpolicies that support taking on“challenges”■Secure personnel and improvestructures for global market
expansion■Establish management andutilization structures that increase“Lifetime Value” of content

Materialities concerning
Implementation of“Enhancement of
Broadcasting Value” and“EDGE Strategy”<Primary Related Pages>■Further upgrade “information
lifeline” functions in emergencies■Serve as a starting point to
influence society through content
aimed at “achievement of SDGs”■Enhance global strategies in roleof party responsible for “dissemination of Japanese culture”

Materialities concerning
Implementation of“Enhancement of
Broadcasting Value” and“EDGE Strategy”■Enhance analysis platforms to be“data-driven”■Develop technologies enabling
greater efficiencies and reduced
energy usage (cost reductions) inbusiness operations<Primary Related Pages>

・p.36 Human Capital

・p.61 SDGs

・p.47 Social Capital

・p.19 Akasaka Entertainment City Plan

Materialities concerning
Implementation of“Enhancement of
Broadcasting Value” and“EDGE Strategy”<Primary Related Pages>
・p.40 Intellectual Capital

・p.34 LTV

Deliver wonderful“moments” to all the lives
on the earth■Define and implement“carbon-zero” targets■Promote earth-friendly “sustainable content production”■Enhance policies for “biodiversity
preservation”

Strengthen governanceas a responsible
company

Deliver wonderful“moments” for all withwhom we work together

Materialities concerning
Responses to “Climate
Change” Protecting“Environment andBiodiversity”■Create working environmentsthat are fair as well as physicallyand mentally safe, allowing “peoples of diverse backgrounds” toflourish■Improve education and training
for “skills improvements” for our
staff■Promote appropriate “supply
chain” commitments

Materialities concerning“Human Rights” to“Enhance Broadcasting
Value” and“Implement EDGE Strategy”■“Enhance strategic decision-making and risk management” with focus on businessportfolio reformation■Ensure “diversity” in skills, gender, etc., of Board Directors andExecutive Officers■“Ensure engagement” withshareholders and all other stakeholders

Materialities concerning“Governance”<Primary Related Pages><Primary Related Pages>

・p.08 Message from the President<Primary Related Pages>

・p.70 Environment

・p.08 Message from the President
・p.47 Social Capital

・p.08 Message from the President essage from the Head of・p.24 M
Finance Strategy
・p.77 Corporate Governance22

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Social Mission and Complete Trust

Aiming to “Earn Complete Trust” to Fulfill “Social Mission” as a Media Group
TBS, started out as a broadcasting company entrusted with radio
waves as assets of the people, has embarked along a path formore than 70 years with its social mission as a public institution all
the while being maintained as a private company.
In terms of broadcasting through content and services, TBSconveys the truth with fairness, supports people’s lives and livelihoods as an information lifeline in times of natural disaster(such as earthquakes, tsunamis, abnormally heavy rain, volcanic
eruptions, etc.) which have been increasing in both scale and frequency in recent years, and serves as a starting point for society as
a whole to solve the numerous problems facing the earth and theworld we live in. That is our social mission.
The spirit of constantly looking at what information theearth, the world, and society really need now runs through all
TBS content, from its news and information programs to its dramas, variety shows and sports program.
To fulfill this social mission, TBS HOLDINGS president, Takashi
Sasaki, emphasizes to all Group employees the need to win
complete trust in TBS. At a time when we are flooded with information from the Internet, we need to challenge ourselves todeliver information and content that is trusted more than anyoneelse. No matter how well content and services are created, for if

Fulfill “social mission”
as a media group

Further upgrading of “information lifeline”
functions in emergencies■Establish regulations and structures to secure “complete trust”
with all types of content

Communication capabilities that make full use of broadcasting and the Internet, and reporting capabilities
based on JNN network covering every part of the country■Further upgrade “information
lifeline” functions in emergencies■Serve as a starting point to
influence society through content
aimed at “achievement of SDGs”■Enhance global strategies in roleof party responsible for “dissemination of Japanese culture”■ Quick, agile setup for special disaster programming■ Providing a wealth of life-related information on a
dedicated website

the viewers, listeners, or customers are misled in any way, it willbring the very idea of trust crashing to the ground in an instant.
As such, Sasaki is calling on colleagues to work not so much in thecasual sense of the word “trust,” but instead in a way that says
we want to be “completely trusted.”
This was also discussed when identifying the Company’s materialities in 2022, which included fulfilling our social mission asa key issue in the business area, and to that end, aiming to earncomplete trust.

Establishing regulations and structures tosecure “complete trust” with all types ofcontent

Serving as a starting point to
influence society through content aimed
at “achievement of SDGs”

Analyzing various cases in TV and radio coverage, editing,and on-air reporting, the Media Ethics Guidelines have been
published, and are revised as and when needed and sharedwith all employees.
Normative training is also being enhanced throughsuch means as the in-house university, TBS Group University(TGU).

The large-scale SDGs campaign, Week to Make the Earth Smile,
was launched in 2020. No campaign on the same scale has
been made by any other media organization in the world. The
campaign was recognized by the United Nations as a groundbreaking initiative and led to an exclusive interview withUN Secretary-General António Guterres in 2020. In addition
to these broadcasts, a wide
range of initiatives are taking
place including the handson event, Plaza to Make theWorld Smile, and the publication, SDGs Action Book to
Make the Earth Smile.
→ p.6123

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
Business

Value Creation Story

Sustainability

Performance andCorporate Data

Message from the Head of Finance Strategy

Net sales

371.5

Net sales

358.2

Toward thesecond year of
the Medium-Term
Management Plan
2023
Toshiaki Kawai
Representative Director and Head of Finance Strategy,
TBS HOLDINGS, INC.
Executive Vice President and Board Director,
TBS TELEVISION, INC.

（ Billions of yen ）
40.0
30.0

■O
 perating profit■S implified EBITDA(= operating profit + depreciation)■N et sales

20.3
5.7％

33.6
9.4％

Media Content Business

Lifestyle Business

Real Estate and Other Business

FY2023 Targets

24.0
6.5％

37.5
10.1％

26.0
6.7％

39.5
10.1％

25.0
20.0
15.0
10.0
5.0

FY2021 Results

FY2022 Projections

FY2023 Targets￥281.4 Billion￥291.4 Billion￥307.4 Billion￥10.9 Billion￥14.3 Billion￥16.0 Billion￥61.0 Billion￥63.7 Billion￥66.0 Billion￥2.3 Billion￥2.4 Billion￥2.6 Billion￥15.8 Billion￥16.4 Billion￥16.6 Billion￥7.0 Billion￥7.3 Billion￥7.4 Billion￥358.2 Billion￥371.5 Billion￥390.0 Billion￥20.3 Billion￥24.0 Billion￥26.0 Billion

43.4%

44.9%

47.0%

Non-broadcasting revenue share

While the severe restrictions put in place due to COVID-19 havebeen eased, this past year has been quite special with both theTokyo Summer and Beijing Winter Olympics and Paralympics
being held in the same fiscal year. Against this backdrop, theGroup has taken various measures on its path of “recovery and

390.0

35.0

Total

■ Progress of the Medium-Term Management
Plan 2023
Significantly exceeded initial targets in first year.
Medium-Term Management Plan 2023 updated.

Net sales

Net sales ¥390.0 billion

Operating profit ¥26.0 billion

Upper row: Net sales

Lower row: Operating profit

Simplified EBITDA ¥39.5 billion

Non-broadcasting revenue share: 47.0% of total (up 3.6 points from FY2021)

sowing” with phase 1 of the TBS Group Vision 2030 (hereinafter
the “VISION 2030,” → p.14 ) and the first year of the TBS Group
Medium-Term Management Plan 2023 (hereinafter the “MTMP2023”) → p.15 . The consolidated results for FY2021 were higher
for both sales and profit. Both net sales and operating profit
exceeded pre-pandemic levels. We did not reach the ¥21.5 billion
target for operating profit as indicated in the earnings forecast
for the third quarter, but we did break ¥20.3 billion, the highest
profit seen since FY2009 when TBS became a holdings company.

Net income attributable to owners of parent also increased due
to gain on sales of investment securities.
In terms of sales, the recovery from the pandemic progressed
faster than anticipated with a focus on spot sales revenues. Thiswas in contrast to the budget plan which was based on the assumption that impacts from COVID-19 would remain. As a lesson
for formulating future medium-term management plans, in thisupdate we have reconfigured projections in line with the actual
economic outlook after thoroughly analyzing the business envi-

24

Message from the Head of Finance Strategy

ronment in which the media is placed and thoroughly reviewing
the measures we are currently taking.
In terms of costs, there were two aspects of the cost control
measures we took owing to the pandemic. The first was that production costs were kept down because it was not possible to planoverseas locations or gather a large number of performers. This
will return to normal once the pandemic subsides. On the other
hand, cost reductions made because of working from home, webconferencing, and in-house developed IT tools will continue totake effect even in the future. This at least is one positive outcome to arise from the COVID-19 pandemic.
The COVID-19 crisis has reminded us of the stability of ourreal estate business ( → p.56 ). Our core Media Content Business( → p.52 ) is easily affected by economic trends, and oftentimes
content can be very much hit or miss. The Lifestyle Business( → p.54 ) was also significantly impacted by COVID-19. On theother hand, real estate owned in prime locations in central Tokyo
was relatively unaffected by economic fluctuations and the
pandemic. So that we can maintain highly reliable news coverage and continue to create high-quality content, I believe thatthe highly volatile Media Content Business and the Real EstateBusiness with its stable earnings, have a good complementary
relationship.
We are often asked how we differentiate ourselves in theReal Estate Business, but I am proud to say that we are the only
media and entertainment company that develops built up areas
in a unified way.
The establishment of the Realty Strategy Office is part ofthis effort. In the past, we left the role of development to major

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

developers and we were only involved in the final management
stage, but moving forward, we will take a more active interestin developing built up areas centered on the Realty Strategy Office. Considering that the property value of any office buildings
built within a potential cityscape will rise, I think that it makes
a great deal of sense to own real estate. Although the impactof the situation in Ukraine, such as the soaring price of raw
materials and the postponement of advertising campaigns bysponsors, are cause for concern, we aim to achieve FY2023 targets
of consolidated net sales of ¥390 billion, operating profit of ¥26
billion, simplified EBITDA of ¥39.5 billion, and a 47% share ofnon-broadcasting business revenue.

■ Growth investment
Focusing on EDGE with active seeding over the next
three years
We have made a more than ¥50 billion investment in growth in
FY2021 in line with the EDGE (Expand Digital Global Experience)
strategy. While our main investments were in the establishment
of Akasaka Entertainment City and a new company THE SEVEN,
Inc. (company name changed from THE Factory, Inc. on August
1, 2022) to produce content for overseas markets, we are also
making investments to acquire intellectual property, with forexample, increasing our capital in the anime production company
SEVEN-ARCS Co., Ltd., and MANGA BOX Co., Ltd., which operates a manga magazine app. We will continue to focus on overseas-related, digital transformation-related, intellectual training/education, and content-related technology development, etc.

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

As part of our work style reforms, we are also making investments to give employees a more comfortable and rewarding
workplace, and to attract the very best creators. The space on
the top floor of the HEXAGON building (owned by TBS) has abeautiful view and has been turned into a campus for the inhouse university, TBS Group University (TGU) ( → p.37 ) where
employees come together to receive training and education. On

Financing

Growth investment

Shareholder return¥25 billion
plannedUtilization ofcurrent assets
Approx.
¥100 billion¥140 billion
plannedSale ofinvestment
securities¥60 billion or
more

Sale of investment
securities
Reduction of cross-shareholdings in accordance with
the Corporate Governance
Code and continuous sale tofund strategic investments

FY2021Results

Approx.

¥20 billion

Strategic investment
Active sowing of seeds in every
area of EDGE expansion strategy and original intellectual
property will germinate inphase 2 of the 2026 Mid-Term
Plan, leading to improved corporate value with VISION 2030

FY2021Results

Approx.

¥50 billion

Dividend + acquisition oftreasury stock
The dividend of ¥30 was set as
the minimum for FY2021 but
the annual dividend for FY2021
increased to ¥37, with the annual
dividend for FY2022 planned tobe ¥40. We are also buying backshares, as disclosed, and will lookto do so further as and whennecessary in the future.
FY2021Results

Approx.

¥6 billion

25

Message from the
President

Message from the Head of Finance Strategy

the floor below, capital investments are being made that leadto investment in human resources, such as installing virtual production equipment for streaming, and an incubation center for
developing new technologies.
We are also focusing on efforts to reduce our environmental
impact ( → p.70 ). For example, a company we invest in, Minna
Denryoku, INC. (now UPDATER, Inc.), already supplies 100%
renewable energy to TBS Radio Toda Transmitting Station, TBS
Midoriyama Studio, and buildings related to Akasaka Sacas suchas TBS Akasaka ACT Theater and Akasaka BLITZ. Although there
will be a slight increase in costs, we believe that we will be able
to absorb these by switching to LED lighting and power-saving
equipment, and as such we will continue to push forward with
our renewable energy initiatives.

Dividend trend¥30

FY2020Results¥37

FY2021Results¥40

FY2022
Forecast

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy■ Shareholder return
Continuing stable dividends and acquisition of treasury
stock Post-COVID-19
In FY2021, we increased the dividend by ¥7 to ¥37. In the MTMP
2023, we set a lower dividend limit of ¥30 for the first time inlight of the impacts from the pandemic. Our intention was toput forward a message saying that even if there are significant
impacts from the pandemic resulting in no profit, we will still pay
a minimum dividend of ¥30. The dividend payout ratio will be
30% during the period of this medium-term plan. However, gains
on the sale of cross-shareholdings ( → p.81 ), which are used for
growth investments for medium- to long-term profits, are not included in the dividend payout ratio as a special factor.
As for the acquisition of treasury stock, we have announced inpress releases to the Tokyo Stock Exchange. But some people havecertainly voiced the opinion that, “while there are restrictions on
foreign investment, they are not sufficient.” However, since becoming TBS HOLDINGS, foreign shareholders have never exceeded
20%, and we believe that the shares we hold are a source of funds
for growth investment, so we will continue to acquire treasury
stock as and when necessary.
To raise our stock price, we recognize that the most important
thing to do is to improve corporate value and demonstrate sustainable growth. We recognize that engagement born from daily
meetings with shareholders and investors, as well as information
disclosure and investor relations activities are also important, so
we have recently been making some positive steps forward. Inorder to increase the number of long-term shareholders, we will
also enhance measures to increase the number of TBS fans.

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

■ Soundness of the financial baseAt this point, we do not anticipate any borrowing or issuance ofcorporate bonds, but we believe we need to maintain our credit
rating.
Disclosing our cash allocation as part of our balance sheet
projections in the MTMP 2023 was a major change for us. Thinking
about cash allocation has led to efforts to make essential improvements to the balance sheet, such as the sale of cross-shareholdings.
Regarding cross-shareholdings, the Board of Directors discusses the significance of holding individual stocks every year interms of the economic benefits relative to business relationships
and cost of capital. As such, we are proceeding, as and whenneeded, with the sale of stocks for which the significance of holding them has somewhat diminished.
TBS classifies cross-shareholdings into three groups andexamines them. The first group is those that are essential tocore business strategies, such as JNN affiliates and advertising
companies. The second is business partners, such as sponsors. We
have decided to sell them after careful examination. And thelast group is a source of funds that can be utilized for growthstrategies. We are selling them as and when needed for strategic
investment.

■ Key Performance Indicators (KPI)
We are fully aware that capital efficiency figures, such as ROE, are
key indicators for performance. However, we have not set an ROE
target in the MTMP 2023 for two reasons. This is because, due tothe public nature of a news organization entrusted with radio26Message from the Head of Finance Strategy

waves, it is necessary to maintain a certain amount of capital,
which from a numerical point of view, reduces capital efficiency.
Another reason is that we have a high ratio of securities held inproportion to equity capital. It will take time to reduce our excessive cross-shareholdings. While it is not possible to make big
reductions quickly, the denominator of ROE is greatly influenced
by fluctuations in the market value of these cross-shareholdings,
so at this point in time we have not set an ROE target.
While strengthening investment and management efforts
that are conscious of the capital efficiency given by ROE, we hopeto present an ROE target, or another metric to replace ROE, when
we announce our next medium-term management plan.

Creating value through dialogue with stakeholders
Our perceptions of investor relations have changed dramatically.
Since about four years ago, I myself have been actively promoting
dialogue and communication with shareholders, investors, andother stakeholders, and the frequency and density of dialogue
has greatly increased. We will continue to do our best to respondto the feedback and requests received through this kind of engagement.
I would like to talk about the “Policy on Responses to Takeover
Bids for Company Shares (anti-takeover measures)” ( → p.81 ).
Although we believe that a certain degree of independence isnecessary to maintain the public nature as a broadcasting station
entrusted with the public’s radio waves and neutrality as a news
organization ( → p.82 ), we cannot deny the possibility that somepeople will try to use the air waves, such as the television andradio waves owned by the Company, for their own benefit byignoring the values of fairness and neutrality. These things should

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

not be taken lightly and so we strongly believe that such a situation should not come about. It is for this reason that we maintainsuch an anti-takeover policy. However, if the Special Committee
for Corporate Value Evaluation, an advisory body independent of
the Board of Directors, evaluates and examines any takeover proposal and recommends that the anti-takeover policy should not
be invoked, then the policy will not be implemented. The Special
Committee consists of six members, two of whom are independent outside directors, two independent outside corporate auditors, and one university professor and one lawyer. Four membersof the committee are chosen by our shareholders. The committee
chair is also an outside director. I would like to inform you that
we are gradually changing the nature of the Special Committee
based on feedback from our shareholders.
Of course, we do not intend to have an anti-takeover policy
in place forever. We recognize that further increasing our corporate value is a major issue. As such, we have set targets for our
MTMP 2023 and VISION 2030 with our top priority being not
only broadcasting, but also growth as a new content group. As aresult, if corporate value improves, then the risk of being takenover will also likely decrease.
In response to questions from shareholders and investors regarding the above anti-takeover policy, please refer to the press
release issued in May, which explains our approach and plan.
This year, we also identified our materialities. This stemmed
from an investor’s suggestion when we published our first integrated report last year. We identified our material issues after
thorough internal discussions, and in the future, we intend to set
KPIs for each issue, tying them to corporate value improvements
while monitoring their progress.

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

As we work to increase our corporate value with digital,
global, and experience as the pillars of our growth strategy, we
will hold ever more proactive meetings with investors to increase
engagement. TBS aims to be a sustainable corporate group for all
stakeholders, from shareholders and investors, viewers, customers, employees, staff, performers, interviewees, sponsors, clients,
business partners, local communities, and the global environment.

Notice Regarding Renewal of Plan for Responding to Takeover
Attempts
https://ssl4.eir-parts.net/doc/9401/ir_material4/183129/00.pdf

27

Message from the
President

Message from the Head of Finance Strategy

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
Business

Value Creation Story

Sustainability

Performance andCorporate Data

Financial Highlights

Net sales

Operating profit/Ratio to net sales

Simplified EBITDA (operating profit + depreciation)
Operating profit(Billions of yen)

366.3

361.9

(Billions of yen)

356.7

320

325.6

358.2
20

240

15

160

10

80

5

0
2019/
03

2020/
03

2021/
03

2022/
03

160,000(Billions of yen)

1,100.2

960

821.7
720

18.5
5.1

600.9

(Billions of yen)

20.3

8.0

320,000

32

5.7

6.0

240,000

24

4.0

160,000

16

2.0

80,000

8

13.1
3.7

0

0

10.8
3.3

0.0
2019/
03

798.4
601.2

783.0

794.8

1,201.6

2020/
03

2021/
03

2022/
03

10.0

883.0

32

240,000

24

160,000

16

80,000240

80,000

8

0

0

0

0

2019/
03

2020/
03

2021/
03

2022/
03

10.0

28.9

14.1

14.3

13.9

2022/
03

10.0

2020/
03

27.3

2021/
03

2022/
03

14.0

13.6

6

13.3

0

2019/
03

2021/
03

21.5

12

8.9

2018/
03

2020/
03

18

18.8
13.6

2019/
03

(Billions of yen)

24

30.3

591.9

2018/
03

25.5

(cash flows from operating activities + cash flows from investing activities)

Depreciation

39.6(Billions of yen)

320,000

33.6

33.4

Free cash flows
Capital expenditures（単位入ル）

33.6

27.9

Total net assets

480

2018/
03

（%） （単位入ル）

Capital expenditures/Depreciation
Total assets

240,000

5.2

2018/
03

10.0

Total assets/Net assets

320,000

18.8

0
2018/
03

（単位入ル）

Ratio to net sales

10.0

2018/
03

2019/
03

2020/
03

2021/
03

2022/
03
10.0

-11.0

28

Message from the
President

Message from the Head of Finance Strategy

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Non-Financial Highlights

CO2 emissions (Broadcast Center and Cultural Facilities Building)(Tons)

24,00023,235

21,91618,000Initiatives toward the SDGs

Employee education

161
Total numberof participants* 14,600
TGU courses

20,054

18,267

18,51512,000(FY2021)

6,000
0

2018/
03

2019/
03

2020/
03

2021/
03

2022/
03

Albert Certification

Training and exchange of ideas among Group
employees at the in-house university,
TBS Group University (TGU)* Based on number of applicants

Percentage of female managers

75 hours
Total number of programs 125
Total broadcast time

(November 23-29, 2020, April 26-May 5, 2021,
November 1-7, 2021, May 2-8, 2022)

News, information, and variety programs
participating in the SDGs campaign,
WEEK to Make the Earth Smile■ Outside directors

Ratio of outside directors(TBS TELEVISION, INC., as of February 1, 2022)

First commercial TV program to receive 2 stars
as part of the Albert Sustainable Production
Certification given to programs recognized as
greener productions

14.3％

We are aiming to achieve at least 20% female
managers by FY2026, and are implementing
training and corporate culture initiatives■ Inside directors

1/3
From 2020, three of the nine members of theBoard of Directors were outside directors

29

Message from the
President

Growth Trajectory 1

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

1951–2000

Content Creativity Honed over Generations, Reliability Achieved through Observing Moments in Society and Times
1980

1951
Founding (1951–1976)
The History
of TBSKey Events

Growth and Decline (1977–1995)

TV sets were rapidly adopted throughout Japan during the period of rapid economic
growth. In August 1959, TBS, having formed Japan’s first distinct TV network by enacting the JNN News pact with 16 companies, ahead of any other broadcaster, built
close-knit news-gathering relations. With a string of popular TV dramas and also commencing live sports programming including “The Masters,” TBS consistently topped
the ratings charts, pulling its competitors in its wake.

TBS commences

1951 main radio

broadcasting

News andInformation

TBS commences

1955 main TV

broadcasting

TBS lists on the First

1960 Section of the Tokyo
Stock Exchange

Come On! It’s 8PM

Construction

1981 completed on

Midoriyama Studio

Construction

1994 completed on TBS
Broadcast CenterNews
1998 CS
commences

2000 BS broadcasting commences
A Reformation in Information Programming

The scope of news and information handled by the media has
grown, following a path of bigger and broader coverage. TBS
has promoted the unique nature of its programming withfresh presentations in such now-standard formats as headline
news.

New kinds of information programming, whether “Hanamaru
Market,” a fresh morning lifestyle show, or “JUST,” a tabloid
talk show focusing on fashion trends, are especially popularwith female viewers.

Tetsuya Chikushi News23

Hanamaru Market

Expanding into a Wide Variety of Dramas

Origins of Long-Beloved Series

TBS drama That Depicts New Worlds

Since its founding, TBS has exerted unceasing and unstinting
efforts, which have been rewarded with awards at numerous
art festivals. TBS has responded to audience demand by presenting a wide variety of dramas, such as family dramas anddramas rooted in societal concerns.

Such hit programs as “Mr. Kimpachi in Class 3B,” which sets itself apart from previous classroom dramas, and “Relentlessness
is Found Everywhere,” which attracts audiences even in the
midst of so-called “trendy dramas,” started here and went on
to become series.

TBS has spawned a string of hit shows with new points of view,
including “Beautiful Life,” which helped make accessibility
more recognizable, and “When the Saints Go Marching In,”
whose challenging concept drew attention.

Mr. Kimpachi in Class 3B

Beautiful Life

Excellent Stage Setting, Fantastic Scene
Composition

Unique New Programs Opening up
New Possibilities for TV

Distinctive Variety Shows Aimed at Finding
New Audiences

In its founding period, when live broadcasting was the rule, TBS
produced many variety shows that established its reputation as
the flower of entertainment TV, with rigorous attention to comedy and dramatic scene changes, as well as set design so skillful thataudiences could not tell they were not seeing the real thing.

TBS has created many new variety programs that are not solely
for laughs, including “Discovery of world mystery,” which
responds to viewers’ interest in world histories and cultures,and “Takeshi’s Castle,” a thrilling action variety show.

Taking as its format slogan “TV that is stimulating and goodfor the soul,” TBS has piqued the interest of audiences withsuch distinctive shows as “UTABAN,” a musical variety show,and “GROOVY AFTER SCHOOL,” a variety show set in school.
GROOVY AFTER SCHOOL

Discovery of world mystery

TBS secured viewer support by using the impact and immediacy of live broadcasts to create an atmosphere of “seeing
and experiencing sports.” TBS actively made inroads into suchnovel sectors as golf and professional wrestling, achieving
outstanding results with boxing particularly.
WBA Junior Flyweight Champion
Title Match Juan José Guzmán
×Yoko Gushiken

broadcasting

A New Kind of News Program

Heightened Thrill and Excitement

SportsTBS commences

1987 24-hour

TBS has been striving to regain its footing by such measures as revamping its management ranks and making various changes in its programming which are aimed at
attracting new audiences. The rapid growth of the Internet also led to greater information literacy, and the media environment has entered an era of dramatic change. In
addition to undertaking digital technology development, TBS engaged assertively withmedia and channel diversification, preparing for a new wave of media expansion.

TBS establishes newscasting without relying on video, in whichanchors read the news together with video footage, making
reporting more accessible. TBS raised its status as a news
organization with information content obtained through TV’s
mobility of reporting and gathering of information.

I’d Rather Be a Shellfish

Variety

With a philosophy of “Broadcasting sells value, not time,” TBS has presented works of
excellence that go down in broadcasting history. For nearly twenty years after Video
Research Ltd. commenced its audience ratings surveys, TBS has maintained the highest
annual average ratings, keeping it at the peak in both broadcast ratings share andbusiness results. However, competition eventually became more intense due to theprogress of rival networks, and the efforts to reform the organization of broadcastingschedule and change the management line did not work out as hoped, resulting in aslump at TBS.

Progress and Challenge (1996–2000)

First Steps in “TBS News Reporting”

NewScope

Drama

1990

ISU World Figure SkatingChampionships

Live Broadcast Technology Making Rapid
Strides onto the World Stage

Technological Development Towards
a New Century

With live broadcast technology evolving rapidly, broadcastingof international sporting events has now become a regularoccurrence. With its exclusive rights to live broadcasts of the“ISU World Figure Skating Championships” held in Tokyo, TBS
succeeded in broadcasting on a global scale across 18 countries.

TBS is developing new systems including a batting simulator
and curve-tracking camera to win the audiences’ attention.
New videos leveraging proprietary technologies conveyed
players’ actions in a dynamic fashion.
The Masters

31Message from the
President

Value Creation Story

Growth Trajectory 2

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Performance andCorporate Data

Sustainability

2001– Present

Building a Business Model to Deliver Emotional Content
on a Wide Range of Platforms

2001

The History
of TBSAs the phrase “IT revolution” has become popular with the arrival of the 21st century, the age of smartphones and social
networks arrived, and ways to enjoy entertainment diversified dramatically. Having expanded and evolved into a wide
range of businesses while focusing on broadcasting business, TBS is reforming itself from a “media group” to a “content
group” by aspiring to provide content that is good for the soul while staying in touch with changing times and lifestyles.

2010

2020
l
ita
Dig

Operating profit

Strengthening Management Infrastructure
and Cultivation of New Businesses (2001–2009)
Key EventsBiz2008 Akasaka
Tower opens

Holdings Inc.
2008 StylingLife
becomes a subsidiary

Sustainable Growth and Exploration (2010–2019)joins TVer free2015 TBSstreaming service“TBS for Drama”

Broadcasting
JIN

subscription video
2018 The
streaming service Paravi starts

astingBroadcHit Content that Became a Societal
Phenomenon

Creating Original IP with an Eye Toward
Maximizing LTV

TBS has broadcast hit shows that have gone viral onsocial networks, such as “NAOKI HANZAWA,” which
won Japan’s expression of the year for “I will pay
them back double,” and “The Full-Time Wife Escapist,” which was popular for its “Love Dance.” Variety
shows such as “The World Unknown to Matsuko”
and “Secrets of the Pros Revealed” premiered and areongoing as well.

Golden Prime Time regular dramas in July 2022 are
structured into “Original works not based on otherstories” which are all suited to multi-platform deployment, with an eye toward maximizing LTV. In addition
to working on increased broadcasting value, TBS
strives to create content based on its IP portfolio.

New Forms of Entertainment

Building New Pillars through Innovation

TBS has also found success in movie making, with suchfeatures as “Rookies the Movie: Graduation,” the TBS
movie with the highest box office revenue of all time,
and the Academy Award-winning “Departures.” TBS
has further built even more solid revenue streams,
including opening the Akasaka Biz Tower, and making
inroads into lifestyle businesses.

The stage series “Seven Souls in the Skull Castle”,
which premiered at the IHI Stage Around Tokyo, an inthe-round theater, has settled in for an extended run.
TBS has also earned considerable profit from businesses other than video content, including the major hit“Saborino” from its StylingLife Group.

Seven Souls in the Skull
Castle (c)2017 “Seven Souls
in the Skull Castle” HANA/T B S・V i l l a g e・G e k i d a n ☆
Shinkansen
Photo by Aki Tanaka

e
rienc
Expe

opens new TBS
2022 TBS
Akasaka ACT Theater

Riding a Unicorn

l
ita
Dig

Broadcasting Business

et
ark
lm

ba
Glo
EDGE: Extending Content without Limit
40original%nce*
TBS has produced
content streaming worldperie

Terrestrial, BS, CS, radio

VOD “The Future Diary
Season Two”

E
EDG

Rookies the Movie: Graduation,c, 2009 “ROOKIES” Production
Committee

NAOKI HANZAWA

t
rke
ma

Beyond Tokyo, Beyond the Framework of Broadcasting (2020–)

2030
ION
VIS

Nonbroadcasting
businesses

TBS delivered its unique value in drama production yet
again by putting out many hit productions, including“GOOD LUCK!!” which received historically highratings, “Crying out Love, in the Center of the World,”
which sparked a societal phenomenon on both TV andmovie screens, and “JIN,” which went on to become aseries.

Stage Around2017 IHITokyo opens

E
EDG

2030
ION
VIS

Net sales

bal
Glo

Ex

wide such as “The Future Diary.” Stage show “Harry
adcasting
Potter and the Cursed Child” has also premiered,Bro
with
2020
an extended
run planned. TBS will invest aggressively
in its EDGE expansion strategy for maximizing content*Experience = Live entertainment and lifestylevalue, further continuing growth.

Broadcasting

2030

60%

Non-broadcasting businesses

Non-broadcasting businesses

32Message from the
President

Value Creation Story

Value Creation Process
TBS グループ 統合報告書 2022

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Transformation from a media group to a content group
MaximizingLTV
価値創造プロセス
目次

INPUT

VISION & EDGE

Transformation from a Media Group to a Content Group

Everything that moves hearts and minds

Maximizing LTVIntellectual
CapitalCompetitive Strategies

Manufactured
CapitalSites that create content

Natural CapitalSocial Capital

Attract the next generation ofviewers and reconstruct theunique social value offered by
television
A llo c a t e p r o du c t i o n c o s t s
optimally and promote multi-useom

p l e t e Tr u s

Expand Digital
Global Experience

Give tangible form to the “EDGE”
expansion strategy to achieve“VISION 2030” goals

Materialities
C

EDGE

Carry out measures to kickstart
growth in the digital, overseas,
live entertainment, and lifestyle
areas

t

Strengthen JNN network
affiliates

Collaboration withpartners
Create original content
loved across the world

Fulﬁll “social mission”
as a media group

Innovate work throughdevelopment andutilization of technology

Deliver wonderful“moments” to all the lives
on the earth

Deliver wonderful“moments” for all withwhom we work together

Strengthen governance asa responsible company

Real Estate andOther Business

Financial Capital

Materialities

Lifestyle Business

Promotion of green
energyWork to enhance broadcastingv alue during the current
medium-term plan period

ty
vi

ach
Re

Enhancement of
Broadcasting
Value

Growth Strategies

Crea
ti

Content andproprietary technologies

Media Content Business

Outstanding people tocreate the wonderful“moments”

COVID-19 Spread Instills Cost Control AwarenessRestoring Terrestrial TV Advertising

Accelerated Technological Innovation

Diversification of Content Supply Formats

Trends in Economic Conditions, Financial Markets

Platform

Television and radio content(Dramas, variety shows,
news, sports, anime, etc.)

Radio broadcast

Corporate Philosophy

The TBS Group aims to deliver

timeless content and services tothe world, respecting diverse

Web streaming platforms

values and striving to make a

Performance content
Recorded media (DVD/BD, etc.)
Theaters (TBS Akasaka ACT Theaterand IHI Stage Around Tokyo, etc.)
Program formats
Overseas broadcast &streaming company
Manga
Stores (TBS Store, THE MARKET, etc.)

positive contribution to society.
Brand Promise

To create entertaining and inspiringexperiences that move hearts and minds.

From each moment,a better tomorrow.

Patents, intellectual property,
and music

Licensed Retailers

Intellectual training andeducation (SCHOP Inc., etc.)

Akasaka Sacas

Household goods,
Apparel, etc.

Stores (PLAZA/VECUA Honey)

Cosmetics,
Quasi-drugs, etc.

Wholesaling (Domestic drug stores)

Net sales¥550 billion

Licensed Retailers (CP Salon)

Operating proﬁt¥38.5 billion

E-Commerce & Catalog sales

Ratio of operating proﬁt to net sales

Character licenses

Our Goals for FY2030

Facial aesthetic care, etc.

Overseas general trade

Building leasing

Akasaka Biz Tower/The Hexagon, etc.

7.0%

Have revenues from non-broadcasting businesses
account for 60% of total revenues by 2030
Non-Financial KPI

Residential condominiums
Akasaka The Residence
Studios, parking lots
Heating & cooling, electricity

Midoriyama Studio/Kinuta Studio→ p.29

Stakeholders

External Environmental AwarenessResponse with Post-COVID-19 Conditions in View

01

OUTCOME

Terrestrial andsatellite broadcasting(Movies, theater, musicals,
live music, etc.)

Performance andCorporate Data

Sustainability

業務・企業情報OUTPUT
Content

Human Capital

Strategies for
Business

事業別戦略

BUSINESS MODEL

Six Capitals

Value Creation Story

Changing Social Conditions
Accelerated SDG Initiatives

Viewers, Listeners,
Customers

Shareholders,
Investors

Advertisers

Employees

Business Partners

Society
Natural Environment

Legal Regulations including soft law(Software Copyright and Protection Act)33

Message from the
President

Value Creation Story

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

The TBS Group emphasizes Lifetime Value (LTV) of content when it comes to value creation.
The TBS Group maximizes content LTV by generating original content and delivering it through various platforms.

Maximizing Content Lifetime Value (LTV) 1
Utilizing Diverse Platforms

Multilateral Deployment of Original IP (Intellectual
Property) Utilizing Diverse Kinds of Creativity

TBS Strengths: Creativity × Reachability
Establishing LTV Maximizing Model
Cases
TBS productions, including dramas and anime, are deployed andutilized multilaterally using creativity born of the diverse platforms and equally diverse personnel possessed by the TBS Group,
including secondary use of video content such as online streaming over streaming platforms, secondary creation of such as movies or streaming spinoff dramas, and licensing for merchandisingor novelizations.
Of particular interest is “MIU404,” broadcast in June 2020,
which was promoted by the unique initiative of a nationwide
caravan of the “MARIGOTO MELONPANGO,” which appearedin the program itself. The show also lent itself to merchandisingand utilization on other platforms such as domestic broadcast
syndication, and established a model case of maximizing LTV.
The TBS Group is planning to maximize LTV by intentionallycreating “works that increase both broadcasting and secondaryuse,” such as “MIU404.”

Multilateral Deployment of “MIU404 ”

Online Streaming

June 2020-

Free streaming on TVer, TBS FREE, GYAO!, and subscription
streaming service Paravi (only Paravi as of this writing). TBS is
also streaming previously unreleased footage only on Paravi.

Blu-ray & DVD

December 2020-

Sales of Blu-rays and DVDs in just three months
starting December 25, 2020 amounted to ¥784 million,
the second highest in the TBS rankings for FY2020.

Radio

August 2020

TBS produced “In Conversation: Yonezu Kenshi andNogi Akiko on ‘MIU404’,” between the theme song
composer and the scriptwriter.

SNS

June 2020

TBS arranged simultaneous live streaming on Instagram,
Twitter, Facebook, and YouTube as a digital-jack project.
The stream was viewed some 2.2 million times on YouTube.

Terrestrial Broadcasting
June 2020-

Maximizing LTV

Merchandising

June 2020-

Over 150 kinds of original program merchandise, books,
and other items are sold via the TBS SHOPPING online
store and the brick-and-mortar TBS Stores. All-time top
TBS sales.

Displays

September 2020-

The “MARIGOTO MELONPANGO” nationwide caravan, which
was used in the actual show, went on for some two years.
Merchandise was also sold that was available only with thecaravan, and events were held at all stops.

Domestic Broadcast Syndication©TBS SPARKLE, Inc. / TBSJanuary 2020-

TBS sells programs to TV stations across Japan, chiefly to JNN group
stations. Syndicated reruns were sold in association with the“MARIGOTO MELONPANGO” nationwide caravan events, and theshow was aired again at all stops.

34

TBS グループ 統合報告書 2022
Value Creation Story

目次

TBS グループ 統合報告書 2022

目次

Message from the
President

Maximizing Content Lifetime Value (LTV) 2
Format SalesSASUKE/Ninja Warrior Global Marketing

s
e
l
a
S
t
a
m
r
o
F

Long-Term
Strategy
VISION &EDGEandMedium-Term Management Plan

Message from theHead of
事業別戦略
Finance Strategy

VISION & EDGE

Value Creation Story

Strategies for
Business

事業別戦略

and
業務・企業情報 Performance01

Sustainability

業務・企業情報

01

Utilizing IP to the Utmost to Pave Its Way into the Global Market

TBS Global Marketing History

Format Sales Expertise

Global marketing of TBS content began in 1961, withthe sale of the broadcasting rights to “I'd Rather Be a
Shellfish” to what was then West Germany, which duly
aired the program. TBS led the Japanese broadcasting
industry in format sales with the sale of “Waku Waku
Animal Land” to the South Korean network KBS in 1985.
With a history spanning more than six decades, TBS global
marketing is known worldwide as a pioneer in the format
sales category.

Beginning in the earliest stages of format sales, TBS has
built trusting relationships with overseas agents, such as
Bellon Entertainment, and customers. TBS has also leveraged its content production capabilities and its in-houseknow-how regarding global marketing to effect suchbusiness developments as securing advantageous format
sales agreements that include localized program rights aswell as merchandising and tie-ins.

Global syndication

TBS sells overseas broadcast and streaming rights to programs originally broadcast in Japan. These
programs are translated into languages other than Japanese for such overseas broadcast.

Format sales

TBS sells program concepts and production know-how. Buyers produce localized versions of these programs.

When sold in format versions, TBS content is producedwith the character of each destination country in mind,
such as employing local talent, remaking such shows inlocalized versions.
“SASUKE/Ninja Warrior” is particularly popular in the
U.S. and indeed around the world, making it the supremeexample of successful live-action Japanese TV content in
the global market.

Offering Wonderful “Moments” to the Worldthrough Format Development
Of the many formats that TBS markets,“SASUKE/Ninja Warrior,” “Kato and Ken’s
Good-Time TV Funny Home Video Corner,”and “Takeshi’s Castle” are marketed aroundthe world and have posted especially strong
revenues over the long term.
TBS is actively sowing seeds for format
development to succeed these formats, including joint development with Smart Dog
Media, creators of the worldwide hit “TheMasked Singer,” on “Love by A.I.”

Maximizing LTV

LTV を最大化“SASUKE/Ninja Warrior” Global Marketing“SASUKE/American Ninja Warrior“Multi-platform
Global syndication
Formatsales の主な実績「SASUKE/Ninja
Warrior」
marketing

アメリカ版SASUKE
More than 100 million viewers in the「American
Warrior」
most popularNinja
seasons

Broadcastin
海外番組販売165 countries

165カ国で放送

Corporate Data

Localized
versions
フォーマッ
ト販売
produced in
25 countries

25カ国で

現地版制作

Merchandising
マルチ展開
Tie-ins
Theme商品化
parks, etc.

タイアップ
テーマパーク等

14 seasons produced as of issue“SASUKE/UK Ninja Warrior“
イギリス版SASUKE

Theme park grand opening in 2019

「UK Ninja Warrior」

常設テーマパークがオープン (2019)

Top
time rated
show for 14
現在primeSeason14まで制作
consecutive weeks
人気シーズンでは、延べ1億人以上が視聴
More than 200 kinds of merchandise
14 週連続ゴールデン帯トップを記録
200 種類以上の商品化展開

35

Human Capital

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Human Resources to Create the Wonderful “Moments”

Further Refining “TBS Quality” via In-house University
As a media group striving to making changes to a content
group, TBS is engaged in the broadcasting, video, culture, video
streaming, real estate, and shopping businesses. Employing andmentoring personnel in all of these areas is a critical issue in orderto achieve TBS Group VISION 2030. In terms of employment, TBSproactively recruits both college graduates and qualified people
for career positions. TBS mentors its employees in a variety ofways, chiefly through expanding the TBS Group University (TGU),
the in-house university that assists employee learning.
In addition to such cultivation of human resources, it is also
important for TBS to offer a working environment in which
employees may thrive. TBS periodically holds seminars on harassment of all kinds and the promotion of LGBT acceptance so
as to eliminate harassment and discrimination. TBS instituted a
telework policy in 2019 to promote diverse working styles. Beginning in February 2020, TBS made telework available to more
employees as a means of preventing the spread of COVID-19.
In order to develop in terms of management while still recognizing the highly public nature of our position, it is essential tohave employees with a sense of ethics who are willing to engage
in self-led education and development. TBS will continue to build
human resources development initiatives to nurture employees
who can contribute to the creation of a more hopeful society,and one that is more sustainable and prosperous.

Breakdown of TBS Group Employees (6,454 total employees)
Real Estate andOther Business

TBS HOLDINGS, INC.

2％

1％

LifestyleBusiness

22％

Media Content Business

75％

Human Capital Strategy for Implementing Materialities
Create original content loved
across the world■ Secure and mentor creators who will produce“Original IP”■ Foster corporate culture and policies that support
taking on “challenges”■ Secure personnel and improve structures for global
market expansion■ Establish management and utilization structures that
increase “Lifetime Value” of content

Deliver wonderful “moments” forall with whom we work together■ Create working environments that are fair as well as
physically and mentally safe, allowing“peoples of diverse backgrounds” to flourish■ Improve education and training for“skills improvements” for our staff■P romote appropriate “supply chain” commitments→ p.7336

Message from the
President

Human Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Initiatives for Human Capital Improvement

Boosting “Challenging,” “Global Marketing,” and “Skills Improvement”■ F oster corporate culture and policies that support taking on“challenges”

 ecure personnel and improve structures for global market■S
expansion■ Improve education and training for “skills improvements” for ourstaff

Human resources policies that bring out the best in people

Proactive recruitment of personnel from other careers whoare versed in digital and global market businesses“In-house university” opens physical campus

TBS continues to enact new human resources policies that enable employees to take risks aimed at achieving the TBS Group VISION 2030.
In addition to the “in-house free agent program,” whichassists employees who have been in a given section for five years
or more in changing jobs, in FY2022 TBS has introduced an “inhouse recruitment program” in which personnel are recruited for
new projects across all sections, and a “short-term in-house study
program” in which employees change jobs on a limited basis inorder to acquire skills in a variety of fields.
TBS has also embarked on a policy of employee monitoring
and training. With the TBS “360-degree evaluation,” results ofobservations from many perspectives, including subordinates andco-workers, are used to give feedback to management-class employees. With the TBS “One-on-one meet20 minutes
ing,” TBS carries out an initiative in which
per monthbosses and subordinates periodically meet
Pace at which bosses
one-on-one for management to listen toand subordinates meet
one-on-one
subordinates. TBS strives to build a work(approximately)place with good communication.

360-degree evaluation

TBS TELEVISION, INC. Hiring numbers(individuals)

Recruits from other careers
College graduates
Boss

Co-worker A

Employee
being
evaluated

Subordinate C

TBS Group University (TGU) was established in 2018 to provide
learning opportunities to the approximately 7,000 TBS Group
employees. In January 2022, TBS opened its long-awaited physical campus in buildings adjacent to TBS Broadcast Center. This
campus is a base that provides a variety of programs, with courses
running the gamut from the latest in the media to trends in theentertainment business and digital technology to SDGs, branding, human rights, and broadcast ethics, and up to and including
business skills, mentoring personnel who will carry out the EDGE
strategy.
Remote courses were established in FY2021, with 161 suchcourses being offered. There were 14,600 aggregate enrollments in
TGU courses in FY2021.
Following normalizing after
the COVID-19 pandemic, TGU will also
14,600utilize the campus as a site for interFY2021 Enrollmentschange, forming a bridge to employee(aggregate)
growth.

To increase revenues from non-broadcasting businesses, TBS has
proactively carried out hiring of personnel from other careers since
FY2016, in addition to employing new college graduates. With
regard to recruitment, TBS hires primarily personnel who contribute to the TBS growth strategy, meaning of course those who are
enthusiastic about the broadcasting business, as well as digitallyskilled personnel in accordance with the increasing demand resulting from TBS’s entry into the streaming business, and those withsuch advanced specialties as investment, law, accounting, and realestate. TBS made 24 career hires in FY2021, approaching the 31
college graduate hires for the same year.
Over the past several years, with the EDGE strategy in mind,
TBS has hired many employees capable ofunderpinning global marketing growth,
43%
including people with experience in the
Proportion of FY2021
TBS TELEVISION, INC. hires
international licensing business or the
who were recruited fromother careers
foreign video streaming business.

2

0

1

2

8

23

24

25

26

25

11

12

11

35

34

35

24

7
29

31

Co-worker B

Junior worker D

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(FY)

10.0

37

Message from the
President

Human Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

TBS’s Human Capital 1

Drama Producer and Director

Supporting the “TBS Drama” Production through Lore and Creativity
Production sites are changing dramatically due to reformations in workstyles and the spread of COVID-19. This
leader in drama production speaks about the humanresources development that helped strengthen its drama
production over time as well as what she hopes to achieve
as a creator going forward.

Mentoring in reformations of workstyles
and the spread of COVID-19

Executive Creator
Drama/movie Section,
Entertainment Division
TBS SPARKLE, Inc.

Ayuko Tsukahara

Profile1997: Joined DREAMAX TELEVISION INC. (presently TBS SPARKLE, Inc.)
2018: TBS Friday Drama “Unnatural”
2020: TBS Friday Drama “MIU404” → p.34
2021: TBS Friday Drama “Dearest”—and many more directorial credits
Made feature film directorial debut with “Cafe Funiculi Funicula” in 2018.
Sophomore directorial effort was “As Long as We Both Shall Live,” scheduled
for release in Spring 2023. Has received numerous awards, including the2020 (71st) “The Minister of Education, Culture, Sports, Science and Technology’s Art Encouragement Prize for New Artists.”

It used to be that one would watch films with senior directors tolearn how to stage drama and the like. Lots of us would also go
to directors’ homes to watch their previous films. In this way, we
picked up a lot from our predecessors learning off the set.
Now, however, with our juniors working eight-hour shifts, I
feel that there is an issue with whether I can teach them what I
learned in ways completely different from what went before.
I think it’ll take another four or five years to find out, probably of trying these reformations of workstyles, seeing what canbe improved, and updating them in ways suited to upcoming
generations.
COVID-19 has also had a big impact. While I saw my predecessors up close, in good times and bad, my juniors don’t see me inthe same way, because we do everything at home nowadays. I'mtrying to figure out how to work around this.

I want to cross content boundaries
What with there being hardly any boundaries between us andthe global market, and platforms taking all manner of forms, I
think we have a much stronger sense than before of being on an
equal footing with all manner of content creators. I think it would
be great to emphasize content creation itself, in the manner of ateam of creators. I think that, for example, we’re in an era when
we can sell such ideas as what the team that made “Dearest” isgoing to do next.
Boundaries between film and drama are going away, andwe’re going to see new mentoring of personnel, such as having
drama shot by filmmakers, and drama cameramen and directors
working on films. This will also likely lead to expanded expression,and I think that, for anime and CG creators too, boundaries will
go away as we all meet and work with different people.

38

Message from the
President

Human Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
Business

Value Creation Story

Sustainability

Performance andCorporate Data

TBS’s Human Capital 2
News Program Producer

Making Programs with a “Normal” Lifestyle Sensibility
The wave of reformations in workstyles, accelerated
by COVID-19, is bearing down on news programming
as elsewhere in which long hours on the job was taken
for granted. Many program staffers are mothers andfathers raising children, in about a 50-50 male-to-female
ratio. The secret to drawing audiences lies in that selfsame everyday lifestyle, however.

Striving to create a sustainable workplace“News Studio” Producer

Aya Hoga

Profile1996: Joined TBS
Worked primarily as news videographer, local-news bureau reporter, morning news program producer, and daytime news editor prior to her current
post
Worked eight years in society bureau, reporting on police matters
Took maternity and childcare leave while working as a reporter

There is a 50-50 male-to-female ratio of editors and associate editors working on programs, with there being an almost exactly 5050 ratio of the over 120 staffers.
Regardless of sex, staffers with children do a good job of balancing work and home, helping children with their studies before
work and taking them to and from daycare.
A “News Studio” broadcast finishes at 7PM. There are days
when we finish preparations for the next day and leave the office
at 9 or 10PM. As living such a life day in and day out would tearhomes apart, we balance work such that we work hard when
we’re on duty, and we’re able to leave at five o’clock when we
don’t have to stay, as well as telecommute.
Even I as producer get someone to fill in for me once a weekeven while the show is on the air and go home, because I like having
dinner with my kids once in a while, too. In so doing, I strive for aworkplace atmosphere in which we can all talk about family andpersonal matters, and people feel comfortable speaking up aboutsuch things as their wives being ill or their needing to pick up the kidsfrom school on a given day. It seems to me that valuing families, giving a realistic feel of “normal” lifestyle sensibilities, such as rising foodprices and problems with school closures, shows in our production as
well, and leads to us drawing viewers across a wide age range.

Enhanced social media presence centered on staffers intheir 20s
In this day and age, even news programs need to make money,and “News Studio” communicates via social media as well as
terrestrial broadcasting. It’s our 20-something staffers who aredigital natives who are most effective here.
They creatively distribute content to each unique users of Twitter,
Instagram, and TikTok, so as to take an up-close at our anchors.
We continue to compete fiercely with other networks in the early
evening time slot, but social media
postings provide an opportunity toentice particularly younger audiences to watch “News Studio.”“News Studio” Second Block (17:50–19:00) Audience ShareTotal Share
New Family Core Share

14.2
7.3
First Half
2019

15.3

15.7

9.6

10.5

Second Half
2019

First Half
2020

15.8

16.5

16.7

11.2

11.4

12.1

Second Half
2020

First Half
2021

Second Half (FY)
2021

10.0

39

Intellectual Capital

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Content and Proprietary Technology

Accelerates the Ability to Create Content with the Power of Digital Technology for Delivering“the Wonderful Moments to Touch the Heart”
Outline of TBS Group’s Intellectual CapitalTBS’s intellectual capital is built upon the vast array of content created since its founding as a television broadcaster,and now ranges far beyond the television framework. This also includes the expertise, skills, and unique technology
needed to create that content. Based on our core value of delivering “the wonderful moments to touch the heart,”
we have promised in the TBS Group VISION 2030 to accelerate content production through digital skills.
Our vast array of content, and the proprietary technology we developed to create it, are the two capitals most representative of TBS.
From broadcast programs to movies and stage performances,TBS’s reach has expanded beyond Japan to nations overseas, andall the specialized skills (expertise in coverage, composition, editing, script writing, direction, and more) cultivated in the production process have been passed from generation to generation, andare being refined on a daily basis.
TBS has a high ratio of internal production, which gives it theadvantage of a large internal skill reserve.
Content does not end with a program broadcast. It lives onin the ongoing copyright and reaches viewers through online
streaming, DVD sales, etc., which generates multiple layers of revenue through overseas program sales and “format sales” (multi-use
of content). Our knowledge of marketing, including the impact ofadvertising on content distribution, is also growing stronger everyday.
TBS continues to develop its own proprietary technology forcontent production and delivery, and technologies initially envisioned for its own broadcasting are increasingly being used byother companies in the industry, as well as for academic research.

Enhancing Intellectual Capital with Initiatives to
Implement Materialities

TBS’s Intellectual Capital
Patents and Trademarks
Patents

Trademarks

Create original content loved
across the world■ S ecure and mentor creators who will produce “Original IP”■ Establish management and utilization structures that increase“Lifetime Value” of content

20

Pending9

Including joint

Japan - Registeredand Existing

175

Including 14 shared— HD/TV/R only

Japan - Pending

11

All independently owned HD/TV/R only

Overseas Registered and Existing89

All independently owned HD/TV/R only

Overseas - Pending

6

All independently owned HD/TV/R only

Content
Television and radio content(Dramas, variety shows, news, sports, anime, etc.)■ Foster corporate culture and policies that support taking on“challenges”■ Secure personnel and improve structures for global market
expansion

Notes

Registered and ExistingMedia
Content
Business

Performance content (Movies, theater, musicals, live music, etc.)
Program formats
Manga
Patents, intellectual property, and music
Intellectual training and education (SCHOP Inc., etc.)

Innovate work through development
and utilization of technology■ Develop and utilize proprietary technologies for “content
quality improvement”■ Enhance analysis platforms to be “data-driven”■ Develop technologies enabling greater efficiencies andreduced energy usage (cost reductions) in business operations• Specialist skills for content creation• (Expertise in coverage, composition, editing, script writing,direction, and more)

Content
Production
Abilities• Copyright portfolio built through content creation• Expertise in content transmission and delivery built on a coreof broadcasting technology• Marketing knowledge, including advertising effectiveness• Proprietary technology (Mojiko, a transcription editor that uses
AI voice recognition, has won various awards including the
Minister of Economy, Trade and Industry Award)

40

Message from the
PresidentIntellectual Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

TECH VISION 2030

Using Technology to Improve Content Quality, and Deliver the Experience to Audiences
Technology is key to successful implementation of the
TBS Group VISION 2030. “Improving the quality of content, delivering it for audiences to experience.” To thisend, TBS acquires various intellectual property (IP) both
Japan and abroad, and engages with enhancement andreconfiguration of IP management policies.
TBS TELEVISION, INC. Media Technology Bureau and TBS ACT, INC.
are rich in personnel with the ability to make content capable oftaking on the world.
As technology greatly reforms the ways in which audiences
watch video, such as by the addition of such new sectors as thestreaming and experience-based businesses, it is incumbent uponbroadcasting engineers to adapt to change and find new ways of
doing things, in addition to existing forms, in order to produce
world-class content.
To this end, TBS is presently (1) maintaining the quality of its
broadcast programming and (2) innovating by repeatedly taking
chances.
TBS TV stations have technologies that implement services withworld-class precision and equilibrium. Production is well-versed in
the substance of entertainment, cultivated in program production.
At TBS, we continually make opportunities for audiences
to come into contact with content, whether at Akasaka Entertainment City and Midoriyama Studio, or on personal devices,anytime, anywhere. The broadcasting industry is undergoing atransformation from a business of gigantic infrastructure.
The time is close at hand when master TV recordings will be
stored in the cloud, and cinematographers will operate cameras
from their own homes, with no one sitting in editing rooms.
At the same time, advertisers are demanding that we present
data on ratings and purchasing actions for commercials. Our future depends on changing the infrastructure investment and theservices that we have thus far taken for granted. The future ofbroadcasting is in our own hands.

TECH VISION 2030
Following is a roadmap summarizing media technology issues basedon VISION 2030, which we call “TECH VISION 2030.”

Changing How
Broadcast Content
Is MadeEnlarging the Delivery
Range of Broadcast
Content
Changing How the
Broadcasting Business
Operates

Systems Delivering Content on Demand
Securing Rights to Content
Securing and Mentoring Creators
Paid Streaming
Free Streaming
New Kinds of Digital Content
Global Market
Experience Business

Expanding Strengths,
Areas of ExpertiseCompensating for Inadequacies throughCoordination with Other Businesses

Allying with Outside Experts•Production Independent of Place, Utilizing the Cloud and AI•Coordination with Outside Partners Having HD Infrastructure•Mentoring of Project Managers•Building a System in Which Broadcasting and Streaming Are Integrated•Developing Digital Content Rights Protection Systems•Mentoring of Programmers and CG Artists•Enhancing Recruitment of Career Workers from Various Industries•Tie-ups with Outside Experts Having Strong Levels ofExpertise•Establishing Paid Content Production Structures•IP Multicasting, Targeted Advertising•Terrestrial Program-Based Streaming•Expanding Revenue Streams Utilizing TBS ID•Enhanced R&D, Personnel Training•Enhancing Development of Content and Services by Accelerated
Recruitment from Other Careers•Establishing 4K HDR, 5.1ch Drama Production Structures•Applying Video Production Know-how to Theaters,Music Halls•Securing Streaming Platforms•Establishment of New Production Structures•Analysis of Audience Data

•Systemization of Operations•Utilization of News Platforms, the Web, Social Media•Utilization of the Cloud and AI•Archives, Server Security Policies•Investment Strategy, M&A, Collaboration•Entering into Experiential Services including AR and VR•Fusion of Broadcasting and Telecommunications•Central Casting•Investigation of Shared Infrastructure with Other Networks•Terrestrial 4K Study

41

Message from the
PresidentIntellectual Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Proprietary Technologies and Structures Supporting Technologies

Develop, Utilize Proprietary Technologies for Content Quality Improvement
New Technologies■ LMV

Proprietary
Technologies

Data-Driven
Coordination

Multi-angle streaming of event site video■ “TBS Group ID”■ TBS BELL

“TBS Group ID,” Analysis and Utilization of Content Streaming and Customer Data

TBS’s proprietary remote presence system (winnerof the “Technology Development Award” from the
Motion Picture and Television Engineering Societyof Japan)■ STORM

Greater Business Operational Efficiency■G reater Business Operational Efficiency
System Developed In-House
Building, installation, and operation of system developed In-housefor greater business operational efficiency

Integrating pre-existing TBS
Group user data
Building base structures forsecure management and data
analysis of personal information
Automated
Transcription
EditorHigh-speed file transfer software capableof global live relay programming

AI Subtitling
SystemSecure Resource
PV System

News
Publishing
System

Structures Underpinning TBS Technologies
TBS TELEVISION, INC.
Media Technology Bureau
This is the core organization that provides support for TBS Group technologies. Following are two representative structures in new technologies andexperimental development, which are organized chiefly around sections responsible for broadcasting infrastructure and program production.
■ Innovative Technologies Design Department
This department is responsible for developing advanced content technology, i.e., virtual production, remote production, 5G, AI, mainly focusing
on agile development. The department has developed new real-timestreaming systems that commenced service in April 2022. It also develops“LMV” and “TBS BELL,” and carries out development for rapid adoption of
XR technology in TBS programming. New innovation tech space, “TBS Tech
Design X(cross)” is scheduled to be launched in 2023.
■ Media Solutions Department
This department focuses on medium- to long-term “development of platforms for content creation.” In the TBS Group, it develops and certifies

systems to smooth out content production workflow archive management
and multi-use. This department is responsible for the majority of development of systems that manage content in TBS Group divisions. This department has also developed the “STORM” high-speed file transfer software, as
well as “NewsPublisher,” the system that streams news to “TBS NEWS DIG
Powered by JNN,” which was launched in April 2022.

As a team, this unit has three missions that it undertakes on a daily basis:(1) Improving the leading-edge technology and design capabilities of the
TBS Group;(2) Mentoring of TBS Group Personnel; and(3) Dissemination of TBS Group Technologies.

R&D Organization
TBS Tech Design Lab
This voluntary support research and development team was formed chiefly from membersof the technology and art departments of the
TBS Group, such as TBS TELEVISION, INC., TBS ACT, INC, and TBS GLOWDIA, Inc.
As this unit shares and researches technologies and measures that seeminteresting, and seeks ideas that can be applied to programming and live
events, it conducts agile development to ultimately create new content,
products, and tools, through trial and error.

The TBS Group has a research and development program in place for engineers whotake on the challenges of new technologies.
It operates entirely outside the regular TBS
Group infrastructure budget. In the past
three years, 11 budgets have been adopted
for this program, and projects for “Mojipa”
and “Senrigan,” which are used in greater business operational efficiency
were outgrowths of the R&D program’s efforts.

42

Message from the
PresidentIntellectual Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Example of New Technology: Live Multi Viewing (LMV)

Realizing a Live Feeling That Surpasses Reality with Multi-Angle Streaming“Live Multi Viewing”: Multi-angle Streamingof Video of a Live Event
Live Multi Viewing is a multi-angle streaming application provided by a video processing engine developed
by TBS Television, Inc. The technology is capable ofswitching among multiple camera feeds with low
latency, and has been used to good effect in serial
broadcasting of such events as the Kirin Challenge
Cup, the New Year Ekiden, and TBS All Star Thanksgiving Festival.
There is high demand for Live Multi Viewing by
businesses other than TBS, such that TBS has partneredwith WOWOW Inc. and WOWOW Entertainment, Inc.
to form a licensing concern that has thus far succeededin selling licenses to the technology chiefly to otherbroadcast networks and sporting facilities.
TBS has also engaged in an event outsourcing concern focused primarily on major sporting events, andtogether with the aforementioned licensing concern, hasposted more than ¥170 million in total profit since FY2019.

Realizing a Live FeelingThat Surpasses Reality.
Experience “the next
generation”

Multi-view/Ultra-Low-Latency■ Multi-viewpoint event viewing■ Actual latency of 0.1 second■ This technology offers a sense ofbeing in the action!

Changing How
Broadcast Content is
Made

Changing How
Broadcast Content is
Delivered

Multi-device■ Smartglass, watches■ Support for HMD too■ TBS creates the next generation of technology!

Live events and festivals

Results
November 2018

Kirin Challenge Cup

June 2019

Kirin Challenge Cup

August 2020

Golden Gran Prix

October 2020

Princess Ekiden

November 2020

Queen’s Ekiden

January 2021

New Year Ekiden

March 2021

TBS All Star Thanksgiving Festival

RacingCloud Support
LMV supports streaming withcloud servers. The scope is endless!
Sporting events43

Message from the
PresidentIntellectual Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

People Who Underpin TBS’s Intellectual CapitalMedia Technology Bureau Expert

Developing Day In, Day Out with a Sense of “Making Something Better,”“What Can We Improve on?”We spoke with this leader in development who has
worked not only in broadcasting but has also developed
proprietary technologies and given onsite feedback.

The TBS development philosophy

Expert, Media Solutions Department,
Media Technology Bureau
TBS TELEVISION, INC.

Aki Hanzawa

ProfileMs. Hanzawa worked in the Systems Development Department, Development
Bureau , after joining TBS in 2001.
There, she was in charge of building Electronic Data Processing System that isthe backbone broadcasting system, as well as the TBS intranet, and Identity andAccess Management system.
In 2007, she was assigned to the Technology Promotion Department, Technology
Bureau (since renamed the Media Solutions Department, Media Technology Bureau),
where she developed Liveback, the ultra-low-latency system for meeting internal demand primarily for IP transmission, and STORM, the high-speed file transfer software
which is used in medical and game industries as well as in broadcasting. She participated in recommending and developing completely media-less systems for broadcasting, in which tape used to be the main medium. At press time, she is in charge ofdigital transformation of Midoriyama drama production and the development of adelivery system that removes barriers between broadcasting and streaming.
<Awards and Commendations>72nd Technical Development Incentive Award, Motion Picture and Television
Engineering Society of Japan
2020 The Japan Commercial Broadcasters Association Technology Category Grand Prize

TBS engineers have strong commitment for their works. It’s long
been said by hardware manufacturers.
We have a mindset of undertaking new things while remaining
craftspeople at heart. I also engage in development so as to foster anenvironment conducive to manufacturing and taking on challenges.
When I’m doing development work, I want to make things
that are efficient, that eliminate wasted effort, that people are
happy to use. Making systems without such notions in mind results in systems that just create more wasted effort.
When it comes to development, I’m always thinking, day in,
day out, “Let’s make something better,” and “What can we improve on?”From the time I started at TBS, the technology section here
has had the divisions which experimented and accumulated
know-how of a sort that no one else was doing.

The TBS environment as regards new technologies
It seems to me that there are more young personnel these days
who want to make things that are new and more challenging
than before. And TBS has R&D and other programs in place toassist with this.
And when it comes to me developing something new, I’ve put
out feelers to gather information on my own on the latest broad-

cast technologies and IT and proceeded by trial and error, but
nowadays, the isolation between broadcast technologies and IT isfading, and I think the good aspects of both cultures are starting
to come together.
TBS is also getting more recruits from careers in other industries lately, and we also have groups such as the “TBS Tech Design
Lab,” which share technology know-how throughout the wholeof the TBS Group, which leads me to believe that there will beeven more merging of knowledge in times to come.

About the EDGE strategy
I think it’s a really great objective, but it also has its complexities.
It takes freedom of action to do something new. And I think thatthe best thing for that too is to be able to give rise to freedom ofaction through greater business operational efficiency driven bytechnology. I think that even if we can’t fix things right away, lotsof little things can induce freedom of action in existing business
operations, allowing us to do new kinds of work.

Technology and business
When I was developing STORM, I had an image of a technologythat could be used generally, not just in broadcasting. The Technology Bureau (presently the Medial Technology Bureau) used to
be a section that spent money rather than made money. And I was
craving to make a difference.
By being conscious of the “TBS Group VISION 2030,” I believethat little by little the idea is sinking in that even in-house technology development can contribute to business. Ultimately, wewant many people to use what we make. I think that’s the only
distinction between in-house and external.

44

Message from the
PresidentIntellectual Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
Business

Value Creation Story

Sustainability

Performance andCorporate Data

Data-Driven Case History: “TBS Group ID”

Matching Users with Content that Delivers “Wonderful Moments”
Data-Driven: “TBS Group ID”
Mass media such as radio and TV have had strong public service
aspects, with an emphasis on delivering similar content to everyone. In modern times, however, when people have increasingly
diverse actions and values, it is becoming important not to deliver
uniform content, but to be able to deliver content on demand,
what an end user wants when they want it.
In other words, this refers to matching users with content.
Succeeding in this transformation demands establishing a custom-

How Broadcast Content Has Been Delivered
Thus Far
BS Programming
CS Paid Subscription
Programming

Terrestrial TV

Up to now, content has
been delivered by broadcast via broadcast towers
or satellites, with theemphasis on the ability todeliver the same content
to all end users at any
given time.

Radio broadcast

Note that at TBS, we consider this our important mission with regard to the use of radio waves
as the public resource.

er information (ID) platform and utilizing data derived from suchinformation. In August 2021, we at TBS commenced a project todevelop this platform, and in July 2022, we inaugurated two new
business bureaus. Specifically, this concerns making use of the
TBS Group ID Business Bureau, which is responsible for building
and operating of TBS Group IDs, and the Personal Information
Management Bureau, which is responsible for risk management
in regard to Group IDs.

TBS Group ID fulfillment is defined as one of the key aspects
to achieving the “TBS Group VISION 2030,” and as such, we anticipate that by utilizing data gathered by all the various businessesof the TBS Group for further business expansion, we can diversify
our revenue streams. We also believe that, as content is further
forecast to increase in quantity in the entertainment industry
going forward, this will provide a source of competitiveness for
TBS to continue to be the choice of end users.

Current Initiative: Building Preparatory
Structures<Taking Charge ofGenerating Benefit><Taking Charge of Risk
Management>

TBS Group ID
Business Bureau

Personal Information
Management Bureau

Platform development andpreparation for operations
for ID collection and utilization

Investigation of risks arising from ID utilization andsupport for development
and operation based onsuch risk investigation

Means of Content Delivery

Web
Activity
DevicesSNS

Attributes

Transfers

Areas

Evaluations

End Users
CRM

Searches

PointsPayment
Collection

Awareness
Surveys

From now on, TBS will provide
content optimized for our end
users’ interests and activities.
By binding data obtained at all
touch points in the course ofsuch delivery with IDs, we will
be able to laterally optimize
the content in the possessionof the Group as a whole. In theprocess, we will strive for evercloser coordination among ourbusinesses, and the generationof synergies among them.

45Message from the
President

Manufactured Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Bases for Content Creation

Constant Development and Innovation of Facilities and Infrastructure for “Creation” and “Delivery”

Investment Development

One of Japan’s Largest General Production Companies,
Working in Broadcast Technology and Art

TBS Akasaka ACT Theater, THE HEXAGON, and Akasaka Biz Tower:
the Akasaka Entertainment City Plan
In carrying out the Akasaka Entertainment City Plan, we at TBS
have conducted a comprehensive renewal of the Akasaka area.
The first part of this effort has been to set aside the TBS
Akasaka ACT Theater serving as a dedicated theater for thestage production of “Harry Potter and the Cursed Child,” whichbegan its long-run presentation on this stage in July 2022. In
association with its premiere, TBS has proactively engaged in tieins with local commercial facilities, bringing about hustle andbustle throughout the area. Plans call for the adjacent Akasaka
BLITZ (which closed temporarily in 2020) to reopen in October

2022 under the new name of TBS Akasaka BLITZ Studio, withaudience viewing capabilities. Plans also call for THE HEXAGON,
which TBS acquired in 2019, to launch a restaurant in collaboration
with the “King’s Brunch” program in order to enhance its
entertainment dissemination function. TBS is also carrying out theredevelopment plan of the Akasaka 2-chome and 6-chome areas
with construction scheduled for completion in 2028.
TBS will elevate the whole of the Akasaka area, making
it into a base for dissemination of entertainment that will
give rise to ever greater business synergies.

TBS ACT, INC. is one of Japan’s largest general production companies, comprising 12 companies in
the TBS Group. Its three units—technology, art, and computer graphics—center on TV programs
broadcast by TBS.

In-house Development of Broadcasting Systems, Apps, and Web Services
TBS GLOWDIA, Inc. handles a wide range of operations for smartphone apps and Web Services, including planning, graphics andUI design, development, and operation. The company is also involved in such work as developing Web apps using VR, AR, andAI, EC site system operation, video streaming, and producing and managing of websites for programs.

Manufactured
CapitalConstruction of New Content Production Studio

Manufacturing Development Capabilities That Develop
Wide-ranging Distribution Channel and Market Needs

The M6 Studio brings international-standard specs to Midoriyama.
TBS Akasaka BLITZ Studio, specializes in variety show production.
One of the largest studios in Japan, with specifications thatmeet international standards, is scheduled for completion inMidoriyama in June 2023. The facility will be a site for high-end
content production by a new company THE SEVEN, Inc. (as ofAugust 1, 2022; formerly THE Factory). Plans also call for further
expansion within the Midoriyama Studio going forward.
In Akasaka, the aforementioned TBS Akasaka BLITZ Studiowill specialize in high-end variety show production. Additionalsites for content creation are also being established. C Studio,

Organization

Akasaka’s oldest, has had
an infrastructure upgrade
for the first time in 17 years to bring it up to spec capable of use
in large-scale program production, making it capable of handling
4K production and virtual reality programming in addition toother formats. The studio also features the function of a central
sub, which is also capable of content production using cameras
installed in and around Akasaka.

■ Realty Strategy Bureau, Akasaka Entertainment City Promotion
Office■ Development Facilities, including Media Technology Bureau/ICT
Bureau/Tech Design Lab■ C onsultation Facilities, including Facility Planning
Committee and Loan Committee■ P rogramming Quality Management Facilities (Program
reviews, etc.)

The StylingLife Group operates chains of retail stores such as PLAZA across Japan, offering
specialty shops, big box retailers, and beauty salons as well as a wide range of distribution
channels up to and including online shopping and mail order, in its primary sector of beauty
and wellness. This Group is also responsible for the major hit “Saborino,” and has robust manufacturing development functions capable of generating “demand creation” businesses thatcreate demand for new markets.
By equipping this Group with both marketing functions and manufacturing development
functions, it is possible to leverage a combined integrated manufacturing and sales capability
not found elsewhere, continually developing and providing ever more profitable products andservices.

Capitalexpenditures

FY2021 Result

FY2022 Forecast¥28.9 billion¥35.3 billion

46

Message from the
President

Social Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Collaboration with Partners

In Partnership with “All the World’s Peoples and Organizations”

TBS’s Social Capital
It is no exaggeration to say that the work of TBS as a content business would be impossible without “joint development” among
TBS and other outside parties. In that sense, “Social Capital” as
TBS defines it is capable of securing cooperation from “all theworld’s peoples and organizations” in production and reporting.
TBS is able to expand its reach through the presence of its
many “partners” particularly in its business model for “content
creation” and “dissemination through platform.”

TBS Partners: “All the World’s Peoples and Organizations” Cooperating with TBS in Production and Reporting

Viewers
Listeners
Customers
Society
NaturalEnvironment

Shareholders
Investors

Content and Platforms, Expanding Value Together with
Business Partners
Content(Creation)

Platforms(Dissemination)

Content Created
In-house by TBS

TBS’s Diverse
Platforms

Content Createdwith Partners

Partners’ Platforms

TBS Business Partners
Business
Partners

Advertisers

Employees

TBS Group business partners refers to any
and all enterprises, organizations, andindividuals that collaborate on businesswith TBS Group, including joint partners
and companies funded by TBS, production companies, entertainment agencies,and drama creators and scriptwriters.
With TBS as the key station, TBS
Group has built robust national broadcasting networks: Japan News Network(JNN) (28 TV stations), and Japan Radio
Network (JRN) (34 radio stations).

47

Message from the
President

Social Capital

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Partnerships
Partnerships 1

Big Projects, Accelerating andExpandingTo further strengthen TBS’s “content=creativity” and “platforms=reachability,” we at TBS are accelerating and expanding“cross-partnerships,” including joint content creation with partners and making TBS in-house content available on our partners’
platforms.

Began its long-run presentation at TBS Akasaka
ACT Theater in July 2022

“Takeshi’s Castle” to be streamed worldwide exclusively on Amazon Prime Video in 2023

Author J. K. Rowling and a world-class creative team assembled tobring Harry Potter to the stage, 19 years after Harry Potter and the
Deathly Hallows. The team created a magical stage experience inwhich the audience becomes part of Harry Potter’s world. In addition to the new purpose-built theater, the very streets of Akasaka
themselves become part of the platform; the moment one exits
the subway station, one is surrounded by the fictional world ofHarry Potter.

“Takeshi’s Castle,” produced and aired by TBS in the 1980s, wasan action-oriented variety show with audience participation. The
show became an unprecedented social phenomenon. The show
was a big hit outside Japan as well, and is retuning in a new streaming version on Amazon Prime Video, one of the world’s top online
platforms. TBS original content brings “wonderful moments” ofexcitement and laughter to the world via new platforms.

Executing the “EDGE” World Strategy
Through Partnerships■ Signing a strategic partnership agreement with Korea’s CJ
ENM■ Worldwide streaming of the dramas “JAPAN SINKS: Peopleof Hope” on NETFLIX and “TOKYO MER: Mobile Emergency
Room” on Disney+■ TBS founds THE SEVEN, Inc. (formerly THE Factory, renamed as of August 1, 2022), a new world strategy company targeting the global market, with an initial content
creation budget on the order of ¥30 billion.
■ One of the largest studios in Japan, with specifications thatmeet international standards, is scheduled for completionin Midoriyama in June 2023.

Content (Creation)

Platforms (Dissemination)

Content (Creation)

Platforms (Dissemination)

Content Created
In-house by TBS

TBS’s Diverse Platforms

Content Created
In-house by TBS

TBS’s Diverse Platforms

Content Createdwith Partners

Partners’ Platforms

Content Createdwith Partners

Partners’ Platforms

48Social Capital

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Partnerships
Partnerships 2

Robust TV and Radio Networks
with National CoverageWith TBS as the key station, we have built a robust nationwide
broadcasting network with the 28-station Japan News Network (JNN)on television and 34-station Japan Radio Network (JRN) on radio.
While there are stations in both JNN and JRN with no TBS capital investment, and which are based in contractual relationships
between independent companies, increased revenues are being
pursued systemwide, along with cost reductions and greater efficiencies, by means of such initiatives as shared business development
among stations, as well as shared use of infrastructure and systems,
to respond to the ever-changing environmental conditions confronting the broadcasting industry. July 2020 saw the inauguration of the“JNN Affiliate Enhanced Manager Council,” which has planned andIn TV and radio, respectively, JNN and JRN are important “joint creation partners,” implementing broadcasting in Japan on a national
scale. JNN is founding a next-generation news platform that goes beyond the TV paradigm, and is also promoting new business development, as well as digital transformation and cost reductions.
carried out a variety of policies to achieve these objectives.
“TBS NEWS DIG Powered by JNN,” an online platform for
JNN, commenced operations in April 2022. Its purpose is to reform
systems and enhance Japanese national news streaming, as wellas to effect greater monetization through such initiatives as introducing practical display advertising.
In addition, since the FY2021 start of “JNN Business Challenge,” a business proposal scheme which has new business development as its objective, the scope of participation therein has increased, and the scheme is undertaking initiatives encompassing
JNN affiliate stations as well as the TBS Group itself.
Turning to broadcasting infrastructure and systems, we arecarrying out the digital transformation and sharing of systems
across all affiliates, including integration of data broadcasting
infrastructure centers in 2023, and are also effecting compression
and reduction of infrastructure investments and operating costs.
Additionally, we are continuing with existing measures suchas enhancing coordination and reducing costs by gathering theTokyo branches of the 12 JNN affiliates in shared offices. We
will continue to enhance our partnerships
through our affiliate
networks.

Partnerships 3

Associates Who Create Content andGenerate Value Together with Us
TBS creates programs in news, drama, variety, sports, music, anime, and other diverse content and films, as well as events as stage
shows, art exhibitions, and concerts, and broadcast, streams, andadministrates them. Our production facilities are supported by morethan 3,000 distinctive staffers, combining varying kinds of expertise,in some 200 companies, including program production companies,
technology and art companies, and dispatches. At TBS, we believethat the enrichment and manifestation of the abilities of these staffers, working both in-house and externally to the TBS Group, will be
the driving force, both of new growth for TBS, and also of the “TBSGroup VISION 2030” itself.

We are doing our utmost to allow staff both in-house and outside with creative skills to use their abilities to the full. Work environment
for telework, remote reporting and learning, also available to staff both in-house and outside, are on an equal footing with office
employees.
For new growth, TBS is providing to everyone who works in the
TBS Group “job satisfaction,” “new employment environments,” and“training opportunities.” At TBS, we are enabling all who work here
to have a strong sense that anyone can take a chance, by building a
new awards program such that in workplaces where plentiful creativity is demanded, all staffers, whether in-house or outside, can offer
ideas, make full use of their talents, have them evaluated, and feelstronger “job satisfaction.” In addition, we are providing many of thestaffers who work for the TBS Group with “training opportunities”
for proactive personal learning and growth, by expanding such “newemployment environments” as telework and remote conferences

and reporting, as well as establishing the TBS Group University (TGU),
our own in-house university. In order to strive for further value enhancement in our programming, live events, and other content, andto drive our broadcasting business to new levels, we at TBS will grow,and generate and offer new value, together with the production
companies and dispatches, and the many staffers, which are our partners in production.

49

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Performance andCorporate Data

Sustainability

Business Outline

By integrating the three businesses, TBS seeks to strike an optimum balance for both growth and stability

Media Content Business

Lifestyle Business

Real Estate and Other Business

The Group’s most profitable business segment consisting mainly of TBS’s six core companies. While we enhance the value ofour mainstay broadcasting business, we will further strengthen
profitability to drive performance of the TBS Group as a wholewith the three fields of our streaming business, overseas business, and live entertainment as growth areas.

Developing a business based on “demand creation” that develops new needs in the market. In the main field of Beauty& Wellness, we aim to leverage our advantage in integrated
manufacturing and sales to further develop and provide products and services with superior profitability.

Covering all business involved in real estate management,from the TBS Broadcast Center to Akasaka Sacas andMidoriyama Studio City.
TBS is also working on urban development to help turnAkasaka into “the city offering the greatest emotional experiences in the world” with the Akasaka Entertainment City Plan.

(Billions of yen)(Billions of yen)

300

20

250
15

200

(Billions of yen)

10

100
5

50

2020/32021/32022/32023/3(Projected)

Media Content

0(Billions of yen)

75

8

60

6

(Billions of yen)

Operating proﬁt(Billions of yen)

17.0

9.0

16.6
16.2

4

30

2

15
0

Net sales

Operating proﬁt

45

150

0

Net sales

Operating proﬁt

Net sales

2020/32021/3

Lifestyle2022/32023/3(Projected)

0

7.5

15.8
15.4
0

2020/32021/32022/32023/3(Projected)

0Real Estate/
Other
51

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Strategies for BusinessSix core companies

Media Content Business

TBS TELEVISION, INC.

Offering timeless andbeloved content andservices to people
all over the world
Primary KPIs
• Terrestrial broadcast
ratings• Viewer ratings• Number of views on
TBS’s online platforms• Radio listener ratings• Number of CS
subscribers• Number of visitors• Box office revenue

Media
Content

A core company of the TBS Group that creates entertainment in a wide rangeof fields, including, in addition to TV broadcasting, video content such as
streaming and movies, live entertainment, overseas business, and licensing.

TBS RADIO, Inc.

BS-TBS, INC.

In addition to its main business of radio broadcasting,
TBS Radio also invests in events and films, and operates a
housing business (show homes).

A TBS-affiliated satellite broadcaster that provides BS digital
broadcasting. Began broadcasting in 4K in 2018, creating
realistic productions with ultra-high-definition images.

TBS SPARKLE, Inc.

TBS GLOWDIA, Inc.

TBS ACT, INC.

One of Japan’s largest video production companies that makes programs and content across all
genres, from dramas, variety shows, documentaries, movies and animations to news, information and sports.

TBS GLOWDIA provides a wide range of services,
including entertainment and events, programand merchandise sales, video-related businesses
such as DVDs and streaming, radio program
production, as well as broadcasting and digitaltechnologies.

One of Japan’s largest general production
companies working in technology, art, and computer graphics. TBS ACT has the equipment andhuman resources to handle all kinds of content
production, from broadcasting and stage shows
to events and streaming.

CS-TBS, INC., SEVEN-ARCS Co., Ltd., TC Entertainment Incorporated,
TBS International, Inc., TBS MEDIA RESEARCH INSTITUTE Inc.,NICHION, INC., MANGA BOX, Co., Ltd., THE SEVEN, Inc.*
In addition to the six core companies mentioned above, the Media Content Business segment includes satellite broadcasters, animation production companies, video package companies, bases for overseas operations, research institutes for the media environment, music copyright-related
businesses, manga businesses, and overseas strategic companies. The Media Content Business is therefore made up of companies that enablegrowth through the creation of content from all aspects.
*Company name changed from THE Factory, Inc. on August 1, 2022

52

Message from the
President

Strategies for BusinessLong-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Performance andCorporate Data

Sustainability

Media Content Business Performance and Strategy
Business Segment Strengths

Leveraging the strengths of the largest reach in the media industry, content production and comprehensive promotion capabilities cultivated overmany years, and overwhelming reliability in the midst of information overload, this is the business segment with the largest earning power of the TBS
Group. While enhancing the value of its mainstay broadcasting business, the segment also includes a range of many other different businesses in theareas of streaming, overseas business, and live entertainment.

Market Overview
Opportunities
Reach across all platforms in competitive andgrowth areas⚫Development of next-generation viewers andgreater reach⚫Growth and expansion of digital business, including streaming⚫Borderless content distribution⚫“Goods - Time - Emotion” consumption behavior, experience, and fulfillment needs⚫Corporate, organizational, and individual social
issue initiatives (SDGs)

Risks and Issues
Weighing the risks and benefits of diversification⚫Dependence on terrestrial TV advertising revenue and domestic economic fluctuations⚫Intermedia competition and content acquisition⚫Event cancellations and restrictions because of
the COVID-19 pandemic⚫Copyrights and other intellectual property rights⚫Increase in capital expenditures with equipment
upgrades⚫Technology, systems, security becoming obsolete⚫Human resource development, organizational
and workstyle reform⚫Growth strategy investment & R&D

TBS Group Medium-Term Management Plan 2023―First Year Review

Significant increase in revenue and profit due to TV advertising value reassessment andgrowth in streaming business

TBS TELEVISION, INC.
Performance Highlights
Broadcasting business revenue
Terrestrial
broadcasting
revenue

FY2021Results(billion yen)Time sales
revenues

81.8

+4.3%

Spot sales
revenues

84.5+21.0%

Broadcasting revenues, which had fallen sharply due to the COVID-19 pandemic, recovered faster than expected in many industries. Furthermore, both free and paid video streaming centered on dramas grew significantly, and box office and movie sales recovered, resulting in a significant increase in both sales and profits overall.
TBS also launched measures to create its own original intellectual property. For example, the Groupestablished THE SEVEN, Inc., a new company responsible for overseas strategies with a production costbudget of ¥30 billion. The Group also made additional investment in SEVEN-ARCS Co., Ltd. to strengthen
the structure of its animation production companies, and it acquired MANGA BOX Co., Ltd. as a consolidated subsidiary positioning it as an intellectual property creation company.

Free Catch-up Streaming

Growth Strategies

Numberof views

Advertising expendituresin the Kanto area—

Share among 5 stations+19.0%
20.1%

+0.4%

#1 among
five key Tokyo stations (FY2021)
Monthly average
52.05 million views

Always bringing new entertainment as the best content provider
Digital/global domain
TBS TELEVISION, INC. provides programs and a lot of original content broadcast on TBS to overseas overthe-top media service providers such as NETFLIX, Amazon Prime Video, and Disney+. Going forward, THE
SEVEN, Inc., a new overseas strategic company established in January 2022, will plan and develop high-end
content separate from terrestrial broadcasting. It aims to create two or three global hits within five years
to demonstrate the TBS Group's presence in the overseas streaming market.
Live entertainment domain
As part of the Akasaka Entertainment City Plan, the long-running stage
show “Harry Potter and the Cursed Child” opened in July 2022.
TBS’s real live content aims to evolve further together with the city of
Akasaka.

YoY(up 51.7% year on year)

Net
sales

160.8％ YoY

Ticket Sales System (Business Division)

Launched in December 2021,

exceeding

270,000 members(As of August 2022)

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Strategies for BusinessMessage from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
Business

Value Creation Story

Performance andCorporate Data

Sustainability

StylingLife Holdings Group Organization

Lifestyle Business

StylingLife Holdings Inc.
Group Management Platform

Bringing customers
a more comfortable,
more individual lifestyle

PLAZASTYLE COMPANYBCL COMPANY

General merchandise retail sales business

Beauty & wellness businessDirect-managed retail household goods shops
Franchise business
Licensing business

Development, manufacture and sales of cosmetics andquasi-drugs, etc.
Manufacture and sale of cosmetic tools,
hairdressing equipment, and scientific equipment

CP Cosmetics Inc.

LightUp Shopping Club Inc.

Beauty & wellness business

Mail order business

Development, manufacture and sales of cosmetics and quasi-drugs, etc.
Manufacture and sales of cosmetic tools, hairdressing equipment, andscientific equipment

Mail order and retail shop sales of clothing, electronics,
homeware, watches, shoes, liquor, etc.

Primary KPIs
• Number of purchasers& Unit purchase price• Customer base• Shops, mail order membership, membership base• Number of shops (retailers,
wholesale customers, etc.)• Number of licensed beautysalons• Number of beauty salons• Ratio of overseas sales (BCL)• Ratio of operating profit to
net sales

Lifestyle

Number of shops

Lifestyle Business
Content•Household goods, Apparel, etc.
•Cosmetics, Quasi-drugs, etc.

Platform•Stores (PLAZA/VECUA Honey)

PLAZA
121 stores

CP Salon
1,240 stores•Facial aesthetic care, etc.

BCL

（ VECUA・ROA ）14 stores•Wholesaling (Domestic drug stores)

PLAZA PASS

•Licensed Retailers (CP Salon)•Character licenses

LightUp
4 stores•E-Commerce & Catalog sales•Overseas general trade

PLAZA Members

4.37 million
105% YoY

PLAZA App

4.83 million
138％ YoY

Note: All figures are current as of the end of March 2022; PLAZA App number is the total number of downloads.

54

Message from the
President

Strategies for BusinessLong-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Lifestyle Business Performance and Strategy
Business Segment Strengths

Through the strengthening of the retail business with private brand products that leverage the development and manufacturing functions of BCL,
and the promotion of cosmetics development utilizing the sales capabilities and retail business data possessed by PLAZASTYLE COMPANY, the segment has achieved high profitability through its superiority in integrated manufacturing and sales that mutually utilizes robust product sales functions.

Market Overview

TBS Group Medium-Term Management Plan 2023―First Year Review

Opportunities

Retail sales and mail-order business continued to perform well. Overall sales and profit
increased

Developing a business based on “demand creation”
that develops new needs in the market⚫Respond to changes in consumer mindset or behavior⚫Strengthen targeting for younger demographic,
which has increasing demand for cosmetics, byintegrating production and sales⚫Expand customer contact opportunity and timethrough enhanced coordination between retailshops and web/social media presence⚫Respond to market changes⚫Life Post-/With-COVID-19: Enhanced mail-orderand regional (FC) development⚫Reorganized drugstore market: Faster proposals tomajor distributors

PLAZASTYLE COMPANY, a core general merchandise retail sales business, was forced to close stores andshorten business hours because of the repeated state of emergency, but after this was lifted, the number ofcustomers started to bounce back, resulting in an increase in revenue. In addition, the mail-order business
LightUp Shopping Club Inc., which saw growth in the previous fiscal year following the increase in numberof people staying at home, continued to perform well in FY2021, as seen in an increase in the number ofcustomers and unit price per customer, resulting in an increase in sales and profit as a whole. Although thebusiness segment has not yet reached pre-pandemic levels, it is steadily recovering and we expect to see
increased sales and profits in FY2022.
Growth Strategies

Risks and Issues

Growth of food, clothing, home, and beauty, and challenges toward new business areas

Flexible response to changes in the business environment

The StylingLife Group seeks and nurtures buds with growth potential that lie dormant in existing businesses as well as things of value that can challenge beyond the domains of existing businesses. It aims tomaximize brand value by using these strategies as
an engine for growth.
Moreover, the enormous amount of customer
data owned by the StylingLife Group, which has anationwide network of stores and receives tremendous support from Gen Z customers, is important
information that contributes to data-driven management in the TBS Group. The data is being used
to build a secure information management andanalysis system to expand Group synergies.

⚫More diversified product development due tofalling birthrate, aging and declining population,and lifestyle changes⚫Strengthen digital functions including e-commerceand compensate for rural gaps in the currently
urban-focused network of directly managed
stores in readiness for more frequent and severe
disasters such as earthquakes, typhoons, andinfectious diseases, as well as more frequent unseasonable weather⚫Accelerate overseas business to reduce Japanesebusiness focus

55

Strategies for Business

Real Estate and Other BusinessTransforming Akasaka toprovide wonderful“moments” to every visitor

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

TBS HOLDINGS, INC. / TBS TELEVISION, INC. / TBS HEXA. Inc.
Involved in the leasing of land and buildings owned by TBS HOLDINGS, INC. and TBS TELEVISION, INC.
(Akasaka Biz Tower, Akasaka The Residence, THE HEXAGON, etc.) and in the maintenance andoperation of the TBS Broadcast Center. Also handles urban development in the Akasaka Entertainment
City Plan area, supporting the TBS Group’s entertainment from an infrastructure and facilities
perspective.

Midoriyama Studio City, Inc.

TBS Sunwork, Inc.

Midoriyama Studio City’s main business is the running, as wellas the leasing and maintenance of studios, centered on one ofJapan’s largest television studios Midoriyama Studio, and outdoor sets and art production facilities.

TBS Sunwork supports the infrastructure of the entire TBS Groupand provides lateral support, including TBS Broadcast Center’sequipment maintenance and management, security, temporary
staffing, and outsourcing of accounting, general affairs, and payroll work.

• Capacity rate
• Occupancy rate

Akasaka Heat Supply, Co., Ltd.

TBS Kikaku Co., Ltd.

• Renewable energy rate
• CO2 reduction rate

Akasaka Heat Supply’s main business is supplying heat for air
conditioning and hot water supply to buildings and facilities in
the Akasaka 5-chome and Akasaka Sacas areas, such as the TBS
Broadcast Center, Akasaka Biz Tower, TBS Akasaka ACT Theater,and Akasaka Park Building.

TBS Kikaku operates and manages parking lots as well as an insurance agency.

Primary KPIs

Real
Estate/Other

Real Estate and Other Business
Content

Platform•Building leasing•Akasaka Biz Tower/The Hexagon, etc.

•Residential condominiums•Akasaka The Residence•Studios, parking lots

•Midoriyama Studio/Kinuta Studio

Real estate operated by the TBS GroupTBS Broadcast Center/Akasaka Biz Tower/
Akasaka The Residence/TBS Akasaka ACTTheater/The Hexagon/Midoriyama Studio City/
Kinuta Studio/TBS Housing, etc.

•Heating & cooling, electricity

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Message from the
President

Strategies for BusinessLong-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Real Estate and Other Business Performance and Strategy
Business Segment Strengths

Starting with the Akasaka Biz Tower, the segment has several profitable properties in the Akasaka area, including offices, stores, and residential
condominiums. One of the segment’s strengths lies in its generating of stable profits through its real estate leasing business that makes use of theseproperties. The segment will promote the construction of an even stronger foundation to achieve the Akasaka Entertainment City Plan.

Market Overview

TBS Group Medium-Term Management Plan 2023―First Year Review

Opportunities

Despite slight decrease in sales and profit, stable earnings base remains intact.
Continued active investment to energize Akasaka

Increase in revenues from both new and existing
facilities associated with the Akasaka Entertainment City Plan
⚫Increase in rent income due to the acquisition ofproperties in the Akasaka area
⚫Increase in revenues from attracting customers
to existing facilities because of promotion of the
Akasaka Entertainment City Plan
⚫Acquisition of land and buildings will increase
number of spaces that can be utilized, dramatically expanding range of entertainment on offer

Despite the lingering impact from the pandemic, business performance remained strong meaning we wereable to limit any significant decline in revenue. However, due to an increase in repair costs, including the
upgrading of broadcasting equipment, overall financial results showed a decrease in profit but we are still
generating stable profits.
Active capital investment was made to energize Akasaka. For example, TBS Akasaka ACT Theater was given a new lease of life as the Harry Potter Theater with the Akasaka Biz Tower decked out in the world of Harry
Potter. Akasaka began featuring a Harry Potter Cafe and the Harry Potter – Mahou Dokoro (themed shops).

Risks and Issues
Requirement for post-pandemic response⚫Unused offices trend and declining tenant occupancy rate owing to sluggish restaurant businessbecause of the pandemic⚫Limited business expansion due to finite tenantcapacity⚫Impact on rental income due to changes in thereal estate and lease market⚫Increase in capital expenditures due to soaring
real estate market value in the Akasaka area
⚫Increase in operating costs due to real estate acquisitions

Growth Strategies

Producing content called “space.” Remaking Akasaka into a city that provides wonderful“moments”
As part of the Akasaka Entertainment City Plan, a district development plan was drafted for the 2-chomeand 6-chome areas in Akasaka. The plan was certified by the Prime Minister in November 2021 as a national strategic city planning building development
project as part of the National Strategic Special Zone
Plan.
With the Realty Strategy Bureau (newly established by TBS HOLDINGS, INC. in July 2022) at thehelm, we will produce content called "space" aroundAkasaka to foster an environment for delivering thebest entertainment. We will remake Akasaka into acity that provides wonderful “moments.”

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Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Message from the Head of ESG Strategy

Contributing to the Sustainability of the Earth and the World
as a Starting Point for Influencing Society

Masaya Chisaki
Board Director, Head of ESG Strategy
TBS HOLDINGS, INC.
Managing Director, TBS TELEVISION, INC.

Since its founding, TBS has squared up to the many different social
issues, such as the environment, human rights, freedom, peace,
discrimination, education and poverty, and has continued to sendout messages aimed at solving these problems. From news andinformation programs to the drama “I’d Rather Be a Shellfish”(1958), which questioned the absurdity of war, to “Mr. Kimpachi inClass 3B” (1979~), which directly addressed the problems of teenage pregnancy and LGBT issues → p.31 , what is consistent is TBS’sdesire to make the world a better place through content to give
people hope and energy. It is, so to speak, the DNA of TBS that wehave inherited from our predecessors.
In today’s world, where large-scale disasters occur frequently
due to climate change, and discrimination and prejudice persist,
our DNA, as a media organization’s social mission, is becoming
more important than ever before. To fulfill our important missionof supporting the sustainability of the earth, the world and society,
the Group will promote its own unique sustainability initiatives.
Typical of these is our SDGs campaign, “Week to Make theEarth Smile” → p.61 , which we have been doing every spring andautumn since 2020. Together with our partner companies, we aretaking on the challenge of solving the social issues raised by theSDGs, making full use of TBS’s communication platform to deliverthat vision to society. Indeed, it is difficult for one individual or
one company to solve these issues, so we should use the power of
empathy and understanding of us all to solve the problems withsociety as a whole. TBS will fulfill this role as a hub, or center of activity. These initiatives have received high praise from our partnercompanies, viewers and listeners, and at the same time, they havealso led to the growth of TBS, creating a virtuous cycle.
In October 2021, we established the Sustainability Committee
and we are enhancing various measures to ensure sustainablegrowth and value creation. We are also disclosing information basedon our endorsement of the TCFD recommendations → p.64 andanalysis of climate change scenarios, as well as securing and developing human resources (the source of talent and skill) for theContent Group, and improving the workplace environment. These
key issues were identified, and announced in May 2022, as TBS
Group materialities → p.20 . In August, as one of the KPIs for ESG
materiality, we set a carbon neutral target for the TBS Broadcast
Center, Akasaka Sacas Cultural Facilities, and Midoriyama Studio
by FY2023 → p.70 .
As stated in our corporate philosophy → p.01 , TBS aims torespect diverse values and strives to make a positive contribution
to society. To that end, each and every member of the Group must
be prepared to fulfill the mission of this media organization toconvey the truth, and we must hold dearly our desire to earn complete trust from society. We will contribute to the sustainability ofthe earth, the world and society as a starting point for influencing
society, a message at the very heart of our Brand Promise.

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Message from the
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Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Reinforcing the Sustainability Promotion System

Establishment of “the Sustainability Committee” and Formulation of the “TBS Group Sustainability Policy”
To further strengthen and accelerate efforts throughout theGroup to realize a sustainable society, on October 1, 2021, TBS
HOLDINGS, INC. established the Sustainability Committee, chairedby the President & Representative Director and vice-chaired by
the Board Director & Head of ESG Strategy. And in November ofthe same year, the committee formulated a Sustainability Policy,

which was approved by the Board of Directors.
The Sustainability Committee examines and implements
specific measures related to ESG and the SDGs, such as tacklingclimate change, human rights, labor, the environment, and governance.
Three working groups were established in FY2021 on tack-ling climate change, work style, and wellness. The Workstyle
Working Group puts forward a wide range of different work
styles so that employees can demonstrate their individual capabilities. And the Wellness Working Group is making efforts tostrengthen health management by promoting the creation of arewarding and fulfilling workplace environment for employees.

Board of Directors
TBS Group Sustainability Policy

Sustainability Committee
Chair:	Takashi Sasaki, President &Representative Director
Vice-chair:	Masaya Chisaki, Board Director andHead of ESG Strategy
Members:	12 TBS HOLDINGS Executive Officers and Board Directors

Climate Change Working Group◼ Setting targets and formulating action
guidelines to go zero carbon◼ Information disclosure in line with the
TCFD recommendations, etc.
◼ Formulating policies and rules for sustainable content production

Workstyle Working Group

Sustainability Committee
Secretariat
President’s Office SDGs
Planning Department◼ Examining measures to promote T-work(TBS style of working)• We will work on resolving environmental and social issues throughthe fair and accurate dissemination of intelligence and the provisionof content and services.
• We will respect human rights and diverse values, and contribute to
making a community full of hope.

Wellness Working Group◼ Formulating measures for health management◼ Examining measures for optimizing remote work

As a media outlet with a social mission, the TBS Group will build broad
partnerships with all ranges of the stakeholders in order to co-create adelighted and sustainable society.

 romoting measures against passive◼Psmoking and support for quitting smoking◼ Formulating life plan support measures,
including infertility treatment and trying
to conceive◼ Examining countermeasures for the postCOVID-19 period• We will comply with laws, admire social norms, and conduct fair andtransparent corporate activities.
• We will recognize diverse work styles and create a safe and rewarding workplace where employees can exercise their creativity.
＜ Contribution to the achievement of the SDGs ＞
The TBS Group will contribute to the achievement of the SDGs by 2030 byproviding a wide range of content and services, acting as a starting point forsocial action, and through broad-based partnerships, contributing to the realization of a society full of hope where "no one is left behind.”60

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Achieving the SDGs

Inspiring action for the future with content

Sustainable Development Goals (SDGs)
Campaign “Week to Make the Earth Smile”
The SDGs campaign, “Week to Make the Earth Smile,” waslaunched in 2020. Ambassadors for the 2022 campaign wereAnne Watanabe, Akira Kawashima of the comedy duo Kirin, as
well as Sakura Inoue and TBS announcer Hasen Kuniyama. Its
theme was “Get Involved with the SDGs!,” and it urged viewers
to begin efforts that they could carry out on their own.
This was the fourth campaign and was held from May 2nd
to 8th and featured 28 TBS TV news, information, and entertainment programs covering all 17 goals of the SDGs. All the programs delved deeper into the SDGs by focusing on people taking
real and meaningful action in various parts of Japan and aroundthe world.
On various programs each day, TBS Radio put a spotlighton young people, dubbed “challengers,” who are interested insolving social issues and taking action in different ways. A record
15 programs from BS-TBS joined the campaign, highlighting theSDGs from a unique BS perspective, including a travel program
introducing SDG initiatives from around the country, and a revealing history of gender equality in Japan. The programs are alsoavailable on all platforms, including the free streaming service
TVer, CS’s TBS channel, YouTube, and social media.
The campaign is supported by various partner companies
from many different industries that are actively working on the
SDGs. The social issues and related initiatives each of these companies are working on were taken up in the programs.
Recognizing that one of the areas in which the media cancontribute most to the SDGs is Goal 17, “Partnerships for thegoals.” Through campaigns and other means, the Group hopes toplay a role in connecting industry (companies), government (national and local), the private sector (citizens and organizations),
and academia (education and research institutions) to solve various social issues.

Contributing to taking action for SDGs
People’s awareness of the SDGs has reached a rate of 86%*,
and as taking action to achieve the goals will be an issue forsociety as a whole, a survey was conducted on those who havecontinued to watch our SDGs campaign, “Week to Make theEarth Smile,” which has already taken place four times. The
percentage of respondents who answered “I took action” or“I want to take action” for helping to achieve the SDGs was
90.8% for those who watched the campaign, far higher than
the 46.1% for those who didn’t watch any of the campaign
programs. With the theme being “Get Involved with the
SDGs!,” the campaign, which aims to encourage viewers bygiving them the opportunity to take action, has achieved acertain level of success.
It has become a challenge to encourage action on moredifficult topics, aside from the easy to tackle actions like using your own bag or bottle rather than plastic ones, but theresults show that younger people in their teens who watched
the campaign were highly motivated to take action in a wide
range of fields from human rights and gender issues to diverse
work style. As more and more young people are moving awayfrom television, it is hoped that the SDGs will become a new
way to bring younger people closer to TV.
* Source: 5th Consumer Survey on SDGs, Dentsu, April 2022

Viewer Survey on the 4th Campaign,
Week to Make the Earth Smile (May 2022)■ Those who took action or want to take action on the SDGs

46.1%

Non-viewers

82.2%

90.8%

Viewed once

Viewed twice or more

Viewer survey conducted by Video Research Ltd. (May 2022)

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Achieving the SDGs

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

SDGs Campaign That Goes beyond Broadcasting

A starting point for influencing society through various initiatives

Experience

Plaza That Makes the Earth Smile

Experience

MOTTAINAI Plaza
In conjunction with the third SDGs campaign, an event was heldat Akasaka Sacas Square for five days from November 3 to 7,
2021, where parents and children could enjoy learning about
global warming.
More than 3,000 children came in 5 days to experience amini train powered by electricity generated from pedaling ofbicycles, a honey bee class featuring bees kept on the 8th floor
terrace of the TBS Broadcast Center, and a workshop making
kaleidoscopes using plastic waste from the sea.

In conjunction with the fourth SDGs campaign and supported by
Minato Ward, the Plaza that Makes the Earth Smile was held forthree days during Golden Week in 2022 in and around Akasaka
Sacas Square.
Amid the continuing Russian invasion of Ukraine, thetheme of the event was “world and peace.” If we learn about
the countries of the world, the lifestyles and cultures of theirpeoples, and deepen our understanding of each other, the seedsof conflict will diminish, leading to a peaceful world where “noone is left behind.” With this idea in mind, workshops and stage
events were held where people could come to experience foodand fun from around the world, and learn about children living
in conflict zones.
The excitement of the event, which featured popular TBS
programs at booths and stages where people could have funlearning about the world, was featured in information andnews programs every day, with over 13,000 people, mainly children, taking part over the three days.

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Achieving the SDGs

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Co-create

Co-create

PublishParticipation in the United Nations
Climate Change Campaign

MUSEUM That Makes the Earth Smile

SDGs Action Book That Makes the
Earth Smile

The TBS Group is participating in the United Nations’ SDG Media
Compact campaign “Promise of 1.5°C. - Act now to stop global
warming” which calls for concrete action to halt climate change.
The campaign, which was launched by the United Nations Information Centre in Tokyo to the approximately 170 membersof the SDG Media Compact in Japan, is held as a period ofstrengthening efforts from September to November 2022 tocoincide with the United Nations General Assembly and the27th Conference of the Parties of the United Nations Framework Convention on Climate Change (COP27). TBS will also use
a variety of programs and news to promote understanding andaction on climate change.
The United Nations SDG Media Compact calls on the media
to raise public awareness of the SDGs and to help spur further
action towards achieving the goals. TBS joined as a Group in
August 2019. And on November 12, 2021, all 28 JNN affiliates
joined the initiative for the first time as a Japanese TV network. Going forward, we will further strengthen collaboration
throughout the network.

This project, which has been running since October 2020, displays in a temporary enclosure in Akasaka Sacas Square art
works related to the SDGs.
To date, works have been exhibited by artists from all overthe country with intellectual disabilities in collaboration with theventure company HERALBONY Co., Ltd., works provided by members of the KYOSAREN, the association of community workshops
for disabled persons, and works taken by world-renowned
photographer Leslie Kee of children in care homes in Tokyo.
The fourth installation, which began in May 2022, featured
works drawn by children from various countries and regions
around the world in the Biggest Painting in the World project.
The goal of this project is to nurture children’s love of peacebeyond nationalities, religions and races, and it also seeks to be
exhibited in time for the 2024 Paris Olympics.

Performance andCorporate Data

The SDGs Action Book 2021-2022 that Makes the Earth Smile,
which summarizes TBS’s efforts related to SDGs, was publishedin November 2021. As well as given free of charge to schools
and groups of young people working on TBS’s SDGs, and students seeking employment, it is also available on the TBS website.
The book begins with three students from elementary
school, junior high school, and high school interviewing TBS
President Takashi Sasaki under the title of “Let’s think together
about the SDGs and the earth.” Examples of collaboration withpartners, environmental measures, and internal work styles thatare conscious of sustainability, are also highlighted in the book.
The book finishes with a call to the younger generation
who will shoulder the responsibility of the earth in the future
to propose concrete action, saying, “Let’s take action together
with TBS!”The Action Book is set to be published every year.

63Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Climate Change Information Disclosure Based on the TCFD

Tackling climate change as a responsible company
In November 2021, TBS endorsed the recommendationsof the Task Force on Climate-related Financial Disclosures(TCFD) toward the realization of a decarbonized society.
Going forward, we will actively disclose information fromthe perspectives of governance, strategy, risk management, and metrics and targets on both the risks posed byclimate change to our business and the opportunities thatlead to business and growth. The entire Group will also
contribute to the realization of a sustainable society byleveraging its ability to communicate as a content groupwith an even greater variety of media than ever before,raising awareness of climate change issues on a global
scale, and promoting innovation and behavioral change.

TCFD Recommendations
Four Thematic Areas

TBS Initiatives
 stablished the Sustainability Committee, chaired by the president and vice-chaired by the director responsible for ESG strat■E
egy and attended by board directors and executive officers of TBS HOLDINGS, INC.

Governance he Climate Change Working Group examines the formulation of targets and measures related to climate change, such as de■Tcarbonization and improved energy efficiency. These are then approved by the Sustainability Committee with results reported
to the Board of Directors.
 ontinuous review of the organizational structure in order to strengthen the supervisory function and speed up decision-making on■Clong-term goals, directions, and policies, etc. related to sustainability, including climate change.

Strategy■ Identify risks and opportunities related to climate change, conduct business impact assessments, and consider countermeasures.

■ Established the TBS Group General Risk Management Committee under the TBS Group Corporate Activities Committee, chaired by
the president, to supervise and respond to important risks that may arise in the course of operations in the TBS Group, including
climate-related risks.

Risk
management■ From among the climate-related risks tentatively examined by the TBS Group General Risk Management Committee, departmentsin charge identify important risks in consideration of the degree of impact and likelihood of occurrence, analyze and evaluatethem, and then decide and implement response policies.
■ In principle, the TBS Group General Risk Management Committee reports on the status of risk management during the relevant
period once every six months, in April and November.

Targets

 he three main facilities including the TBS Broadcast Center, Akasaka Sacas Cultural Facilities (TBS Akasaka ACT■T
Theater, TBS Akasaka BLITZ Studio, Akasaka Sacas Plaza), and TBS Midoriyama Studio aim to be carbon neutral(Scope 1+2) by FY2023.
■ In addition to further reducing emissions and using renewable energy at the TBS Broadcast Center, we plan to startcalculating Scope 3 emissions and calculating and reducing greenhouse gas emissions at each Group company.

Results■ Achieved a 42% reduction in CO2 emissions from the TBS Broadcast Center and cultural facility buildings compared
to average emissions from 2002 to 2004, and a 25% reduction compared to FY2015.
■ T BS Radio Toda Transmitting Station, three cultural facilities including TBS Akasaka ACT Theater, and TBS
Midoriyama Studio converted to 100% renewable energy.
■ Implemented the SDGs campaign “Week to Make the Earth Smile” twice a year, calling for action on various social
issues including tackling climate change and global warming.

Metrics andtargets64

Information Disclosure Based on TCFD Recommendations

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Risks and Opportunities

Organizing Risks and Opportunities by 1.5°C and 4°C Scenarios
Risks

Scenario

Transition
Risks
1

Scenario

Opportunities

Risks posed by changes in climate change policies and regulations,
technological developments, market trends, market valuations, etc.

Introduction and tightening of carbon-free regulations
Reduction targets for CO2 emissions become stricter year by year, affecting corporate activities➡ Risk of economic downturn due to rising costs for companies trying to keep emissions down
Increased costs due to the imposition of a carbon tax on companies’ CO2 emissions
and the requirement to use facilities and equipment with low CO2 emissions➡ Financial impact of carbon tax and carbon offset costs➡ Financial impact due to faster equipment update cycle, etc.

Scenario1

 eputation risk with more external pressure (from companies, viewers, investors,Retc.) to address environmental issues
If the Company is not able to fulfill its role as a news organization as expected by society or has not beenable to take environmental measures such as decarbonization, there is a risk that it will be the target ofcriticism or could lead to less advertising placement

2

1

3

Lower renewable energy procurement costs

4D evelopment of recycling technologies for materials and equipment

Lower procurement costs due to increased use of renewable energy
Reduced costs through the joint use of equipment and creation of materials, andthrough encouraging the reuse of materials

Risk of acute or chronic damage from disasters brought about by
climate change

Changes in broadcast content owing to climate disasters

Scenario5

Due to more special disaster programs, there may be less time to broadcast regular programs2

Increased costs associated with response to more intense natural disasters could
affect the economy and become a major risk

Business opportunities

Increasing need for information related to climate disastercountermeasures
Increased earnings due to increased demand from viewers and advertisers forweather and disaster-related programs and information

Implementation of policies to introduce and strengthen business continuity plan
Introduction of a system that can withstand extreme conditions (a system that is morerobust than ever before is required)Development of energy-saving technologies
Less energy consumption and corresponding reduction in electricity prices with thedevelopment of energy-saving technologies
Increased earnings from external sales of framework for low-carbon program production, etc.

Strengthening of policies toward a decarbonized society and changes inthe external environment (public opinion) can become major risks

PhysicalRisks

Growing need for environmental awareness campaigns
Increased earnings due to growing need for content creation and advertising campaigns that help solve climate change and environmental issues*Risks that exist for both TBS and client companies

2

Business opportunities

6

Greater demand to strengthen resilience of news media function
Better reputation by ensuring resilience of reporting function due to more frequentand severe disasters

65

Information Disclosure Based on TCFD Recommendations

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President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Performance andCorporate Data

Sustainability

Impact on Business, Strategy and Finances

Analyzing the impact on TBS’s business, strategy and finances by scenario

Identification of Risks and Opportunities and Financial
Impact Assessment
The table on the right assesses the financial impact of climaterelated risks and opportunities identified through scenario analysis
on the TBS Group’s business activities. In the 1.5°C scenario, costs
are expected to rise due to the introduction and tightening ofcarbon-free regulations, while in the 4°C scenario, repair costs are
expected in the event of damage due to climate disasters. In bothscenarios, a drop in sales owing to a cooling advertising market isalso cited as a risk.
On the other hand, there will be a greater need for information in either scenario, so by fulfilling our role as a media outlet,
which is at the heart of the Group, we will improve our reputation,
leading to increased earnings.

Impact on TBS business by scenario
Risk/
Opportunity

Transition Risks

Physical
Risks

Scenario analysis reference information
Scenario

Reference information
RCP2.6 / SDS (Sustainable Development Scenario) /IEA
NZE2050 (Net Zero Emissions by 2050)

RCP8.5 / STEPS (Stated Policies Scenario)

SR1.5, which has stricter regulations, and the IEA, which describes carbon
prices, are used as supplementary materials to calculate financial impact
and formulate countermeasures based on RCP2.6 and RCP8.5

ActivityType of
ImpactLevel of Impact
1.5°C scenario

4°C scenario

Introduction and tightening of carbon-free regulations

Cost

―

Establishment of advertising rules from a CO2 perspective by governments andindustry groups

Sales

―

Greater external pressure to respond to environmental issues(acquisition of environmental certification)

Cost

―

Greater external pressure to respond to environmental issues(less advertising volume from advertisers)

Sales

―

Cooling of the advertising market due to climate disasters

Sales

Damage to assets and equipment due to climate disasters

Cost

Drop in corporate evaluation due to lack of business continuity plan

Sales

―

Development of energy-saving technologies

Cost

―

More government subsidies for environmental activities――

Lower renewable energy procurement costs

Cost

Development of recycling technologies for materials and equipment

Cost

―

Growing need for environmental awareness campaigns (more ad spend)

Sales

―

Growing need for environmental awareness campaigns (increased media revenue)

Sales

―

Increasing need for information related to climate disaster countermeasures

Sales

―

Greater demand to strengthen resilience of news media function

Sales

―

―

Opportunities“One arrow” indicates an expected financial impact of less than 100 million yen, and “two arrows” indicates an expected financial impact of between 100 million and 1 billion yen. The level of impact of risks and opportunities
that are difficult to estimate is limited to qualitative evaluation for the activity and is therefore indicated with a hyphen.

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Performance andCorporate Data

Measures against Risks and Opportunities

Clarifying What Needs to Be Done Going Forward by Separating into Immediate andMedium- to Long-Term Measures
Initiatives taken by TBS

Immediate measures

Promoting a change in mindset about climatechange to become a starting point for influencing society• Active campaigns that go beyond programs and broadcasts, suchas the SDGs WEEK and Challenge CO2, creating a movement thatinvolves viewers and clients
Scenario

Proactive efforts in decarbonization• In addition to physically reducing CO2 emissions, comprehensive
measures such as switching energy sources• Starting with moves to go carbon neutral for broadcasting production facilities such as TBS Broadcast Center and Midoriyama
Studio, the aim is to go net zero through other segments in the
future• L eading the industry by actively researching and adopting
low-carbon program production methods• Responding to more intense disasters and further enhancing disaster coverage through the TBS/JNN nationwide network• Earning the complete trust of viewers by providing detailed information through various channels using not only terrestrial broadcasting but also the Internet, such as TBS NEWS DIG Powered by
JNN

Actively carry out campaigns such as
SDGs WEEK

Development of carbon-free content
production process• Actively providing information on measures
to tackle climate change issues in society,meeting viewers’ needs• Development of eco-friendly production methods such as visualizing CO2 emissions in program
production• Profits also expected through the licensing ofsuch methods

Promoting the introduction ofenergy-saving and renewableenergy, and actively disclosing
environment-related information

Scenario

Aggressive investment in the carbon-freefield• By disclosing what TBS is doing, the credibility of our communication improves• Enhancing new possibilities by investing in andcollaborating with startups that are active incarbon-free areas• D eveloping and securing low-carbon energy
sourcesStrengthening communications related
to climate disaster countermeasures

Eco-friendly program production• P lanning of programs and content related toclimate and disaster countermeasures• Communication of natural disaster information
through various channels

Disaster reporting trusted by viewers

Medium- to long-term measures

Responding to intensifying natural
disasters• S trengthening resilience of news reporting
functions in response to frequent occurrence ofsevere disasters• Program production based on the reuse of existing resources andassets• More recycling by reusing studio sets, etc.
• B uilding efficient filming and editing
processes with CO2 emissions reduction
in mind

Responding to intensifying
natural disasters• Upgrading to the latest equipment andfacilities that help strengthen business
continuity plan67

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Value Creation Story

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Sustainability

Performance andCorporate Data

Metrics and Targets

Initiatives to Reduce Energy Consumption and Convert Power Use to Renewable Energy

Scope 1 and Scope 2 reductions
Reduce energy consumption
At the TBS Broadcast Center, we have reduced power consumption at the studios by approximately 30% by switching to LED lighting, etc., and we have also reduced electricity use byusing inverter air conditioners and using them for a shorter length of time. Going forward,
we will continue to reduce power consumption by upgrading our studio equipment andthrough other means. Also from the perspective of our business continuity plan, which ensures we have power in the event of a power cut or disaster so that, as a responsible news
organization, we can continue to broadcast, we own our own private co-generation systemin the basement of our headquarters. By extending the downtime of the system at nightfrom the current 2 hours and 30 minutes to 5 hours, we can reduce CO2 emissions by about
200 tons per year.
In the medium to long term, we will continue to make efforts to reduce emissions, by,for instance, looking at switching to more efficient equipment.

Targets

FY2023
Midoriyama StudioAchieve Carbon Neutrality
CO2 emissions (tons)
35,00042％

28,00025％

21,000Convert power use to renewable energy
Since 2018, the TBS Group has been promoting the use of renewable energy through acapital and business alliance with UPDATER, Inc. (formerly Minna-Denryoku Inc.), a venturecompany dealing in renewable energy. In December 2018, the TBS Radio Toda Transmitting
Station, which is the main transmitting station for TBS Radio AM, and in October 2019, threecultural facilities, including the TBS Akasaka ACT Theater, were converted to 100% renewable energy.
In FY2021, Midoriyama Studio also completed its conversion to renewable energy, giving
rise to Japan’s largest 100% renewable energy studio. Likewise, studio filming from all of theTBS dramas aired since April 2021 are being produced using 100% renewable energy.
In the future, the TBS Broadcast Center will also aim for 100% renewable energy.

Akasaka Sacas
Cultural Facilities

TBS Broadcast Center

14,00031,79630,236

24,5257,000
0

2002~2004(Average)

2010

2015

18,515

2021

0
2023

(FY)

10.0

As a result, nearly 70% of TBS Television’s regular programs will be recorded
in studios and broadcast live with zero CO2 emissions.

68Information Disclosure Based on TCFD Recommendations

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Long-Term Strategy andMedium-Term Management Plan

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Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Metrics and Targets

Fulfilling our responsibility to tackle climate change

Responsibilities of the TBS Group
Since 2020, TBS has been conducting an SDGs campaign, Week
to Make the Earth Smile, twice a year. Under the theme of “Get
Involved with the SDGs!,” we are calling on people to take action on various social issues, including climate change and global
warming. In a survey*, 90.8% of those who watched the campaign
programs answered that they “have done, or want to, take action
for the SDGs,” nearly double the number of viewers who did not
watch the programs (46.1%). The campaign will continue to run
until 2030 and lead to concrete actions involving companies, local
governments and viewers.

We are also focusing on in-house initiatives and raising awareness among our employees and staff.
In the news program “News Studio,” we have succeeded in
reducing the amount of paper used in each broadcast by 58% by
doing away with paper print outs, such as scripts, and using tablet
devices instead in broadcasts since April 2022.
In dramas as well, we are encouraging the reuse of sets, by forexample, keeping frequently used sets such as operating rooms andcourt rooms together in units. We have achieved a high recycling
rate of around 90% by separating waste wood and polystyrene.

In parallel with the SDGs campaign, we are also implementing
a 3Rs Campaign in which all employees and staff participate. In
the Reduce Campaign held in the spring of 2022, we cut down on
the use of paper in each workplace, reducing paper waste by 9.4%
compared to the same month of the previous year.
As a news organization and content group with a diverse
range of media, TBS will continue to make use of its power of communication capabilities and influence to become a starting point
for influencing society toward the realization of a decarbonizedsociety.
*Viewer survey conducted by Video Research Ltd. (May 2022)

69

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Promoting Sustainable, Earth-Friendly Content Production

Working to Reduce CO2 Emissions and Recycle Resources Related to Content Production■ Promote usage of renewable energy

Midoriyama Studio achieves effective 100% renewableenergy in FY2021
TBS Group has been converting its TBS Radio Toda Transmitting
Station and such cultural facilities as the TBS Akasaka ACT Theater to 100% renewable energy.
The TBS Midoriyama Studio converted to 100% renewable energy in FY2021. In the first year, it was procured using“J-Credits,” derived from renewable energy generated from solar cells installed on homes in Japan. As a result, the Midoriyama
Studio has become Japan’s largest 100% renewable energy studio.
This means that all TBS dramas filmed at the Midoriyama Studioafter April 2021 are produced with 100% renewable energy.
Additionally, the TBS Broadcast Center building has been
covering one million kilowatt-hours* of the energy it uses annually with green electricity derived from natural energy sources
since 2010. Going forward, we will promote greater energy efficiency as we undertake to convert TBS Broadcast Center to 100%
renewable energy use as well.

TBS Group facilities that have to-date adopted
renewable energy:

TBS became the first commercial broadcasterin Japan to receive Albert Certification

Dec. 2018: TBS Radio Toda Transmitting Station
Oct. 2019:	TBS Akasaka ACT Theater, Akasaka Sacas Plaza,
Akasaka BLITZ
FY2021: TBS Midoriyama Studio

For undertaking reductions in CO2 emissions generated in program production, TBS is awarded a twostar Albert Certification.

These facilities have all converted to 100% renewable energy for the electricity used in all
infrastructure.

CO2 emissions from within TBS Broadcast Center*（％）(in Metric Tons)

23,235

21,916

20,054

18,267

18,515*Comparable to 4% of the 24.5 million kilowatt-hours’ total energy consumption by TBS Broadcast Center
in FY2021.

2018/3

2019/32020/3“Style2030,” produced by TBS SPARKLE, Inc., and aired on BS-TBS
in March 2022, was awarded two stars on the Albert Certification, which is awarded in recognition of “Sustainable Production,” for aspects including reductions in CO2 emissions. This is
the first such certification awarded to a Japanese commercial
broadcast program.

What Is Albert Certification?
The Albert Certification is a process managed by Albert, an industry consortium which began at the BBC. One, two, or threestars are awarded in recognition of carbon emission reductions,based on a calculation of the carbon footprint of a program,which takes into account its entire lifecycle, including energy
used and waste generated in the course of that program’s production. Since the certification commenced in 2014, more than
2,500 productions worldwide have been awarded Albert Certifications.

2021/3** 2022/3***Broadcast Center and Cultural Facilities Building**Data for FY2020 and FY2021 take into account impact of state of emergency declared by Governmentof Japan in response to the COVID-19 pandemic.

70

Message from the
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Environmental Initiatives

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

■ Effective use of limited resources

Reduction, Reuse, Recycle of Sets

“News Studio” Reduces Per-Broadcast Paper Usage 58%

Production sites make use of lots of sets, whether scenery orprops, day in and day out. At TBS Group, we maintain and repair
props and scenery used in past programs, and carefully keepthem in continuous use over the medium and long term in various other programs, whether dramas, information, or variety,thereby reusing our sets.
In dramas as well, we are encouraging the reuse of sets, byfor example, keeping frequently used sets such as operatingrooms and courtrooms together in units, and making themappear to be different spaces with such materials as walls andflooring.
When we finally do dispose of scenery and other program
sets, we transport them to Midoriyama Studio City for that purpose, with the assistance of commercial industrial waste disposal firms.
By undertaking to sort and recycle%by material, such as waste wood andpolystyrene, we achieve recycling
Midoriyama Studio City Overall
Recycling Rates (FY2020)
rates in the neighborhood of 90%.

In association with our SDGs campaign of May 2022, at TBS
TELEVISION, INC., we switched our evening news program“News Studio” from paper to digital tablets for such tasks as
scripts and flowcharts for broadcasting.
In typical news programs and other production sites, paper
would be used to manage the program in order to avoid problems during live broadcasts. In response to calls from our audience, however, as well as a sense on our own part that we needed
to reform our procedures in line with the changing times, weembarked on a trial run of a paperless production. As a result, wewere able to reduce per-broadcast paper use by 58%. In addition,
the new methodology has been proven to be highly effective interms of promptness and accuracy of post-broadcast streaming
as well, as it allows instant propagation to all staff of changes toinitial plans during said live broadcasts.
Going forward, we will adopt techniques appropriate tochanging times, thereby undertaking to maintain broadcast
quality as well as such goals as reducing environmental load andreforming ways of working.

93

Reuse Example: the operating room set that was made for the 2017 drama “A LIFE: A LOVE”
was made into a unit, which has since been reused in such programs as “Dr.STOR KS Season2.”

Paperless program progress at “News Studio.” Anchors and other on-camera parties perform
live with tablets on hand.

Estimated Effects of Going Paperless at “News Studio”(Number of Sheets)

5,580

58％

Reduction◼ R euse Example: the desks used in the classroom drama “Mr. Kimpachi in Class 3B”
from 1979, were also used in “Dragon Sakura 2,” which aired in 2021, keeping theseprops in service for more than 40 years.
◼ P rimary Objects for Reuse
Props: mailboxes, signs, lights, chairs, tables, tableware, etc.
Scenery: Flooring, columns, etc.

2,330

BeforeAfter

71

Environmental Initiatives

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

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Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

■ Biodiversity Initiatives

Communicating “The Connectedness of Life” with thePower of VideoAt TBS TELEVISION, INC., we have filmed wild animals all over theworld for more than 40 years, though such programs as “Waku
Waku Animal Land” and “Amazing Animals.” We utilize theserare videos, considered the foremost of their kind in commercial
broadcasting, in streaming on our YouTube channel “Amazing
Animals/WAKUWAKU.” Since its launch in October 2020, thischannel has streamed more than 400 of these rare videos, ofwhich it may not be possible to film again due to changes in theenvironment. These videos have been viewed some 100 million
times, and the channel itself has more than 310,000 subscribers,
making it one of the leading animal YouTube channels in Japan.
Viewers between teens to early 30s account for more than halfof the channel’s audience, and parents frequently watch with
their children, giving rise to a widespread awareness among
younger generations of educational content allowing learning inan entertaining manner about nature and the environment. The
channel has also begun attracting audiences in the U.S. as well as
the Asia region, chiefly India, in addition to Japan.
There are two pillars that must be kept in mind with regard
to video production for this channel. The first is that, rather thanobsessing with animals merely seeming “cute,” we join researchers in confronting audience questions such as, “Why do they act
the way they do?” and “Why do they look the way they do?” In
this way, we discover the mysteries and attractions of all lifeforms
with which we live on Earth, from insects to reptiles, amphibians,
and mammals.
The second is a statement by the late zoologist Sengoku

Shoichi, who acted as supervisor when these films were originallybroadcast terrestrially “Life connects us all (nature falls apart ifeven one species of animal is lost).”With these pillars as our concept, we present the natural statein which diverse lifeforms exist in complex interactions, communicating the importance of biodiversity. This “communication” iswhat we at TBS are able to do. We believe that informing as many
people as possible about the environment, nature, and biodiversity though our YouTube channel will lead to a better future.

Honeybee Project
The Group started the Honeybee Project in 2011, in which we
cultivate honeybees at TBS Broadcast Center. With this activity,
TBS is contemplating biodiversity and coexistence with nature
throughout the community, through activities such as beekeeping, honey collection, and interactive children’s classes, together with the residents of Akasaka.
In FY2021, TBS partnered with the government to plant nectar source plants that honeybees like, in parks and elementary
schools in the vicinity of TBS Broadcast Center. TBS honeybees
fly among and pollinate the flowers in the area, helping thembear fruit.

“Amazing Animals/WAKUWAKU” isstreamed over YouTube. Rare footageof wild animals filmed all over the world
over more than 40 years is being viewed
by a wide age range in Japan, the U.S.,
and Asia.

72

Social Initiatives

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Organizing Workplace Environments Conducive to Work

Creating a Workplace Where Colleagues Can All Thrive■ Promoting “T-work,” the TBS Way of Working■ Diversity Policy Enrichment■ Utilizing Shareholding Association to Enrich Employee Welfare

Creating an Environment Where People with Diverse
Values and Ideas Can Work Together

Establishment of an Employment Environment in Which
Diverse Human Resources, Including Women, Can Play an
Active Role

Participation Rate Nears 90% Through Incentives

Beginning in April 2020, TBS has been promoting “T-work,” a way
of working unique to TBS in which people with diverse values andideas can work in concord to create new value.
The “T” in T-work stands for TBS, Time management, andTelework. In addition to promoting telework as an environment inwhich employees who work while raising children can function, weare organizing an environment in which employees who may also
have matters such as childrearing, caregiving, or medical conditions
find it conducive to work, by installing our in-house Hanasakasu
Nursery School. In addition, with an eye toward securing diversity in personnel, we are undertaking training programs at TBS
Group University (TGU), our in-house
university, wherein employees maylearn and put into practice a variety ofvalues, such as LGBT, thereby fostering a
climate in which diverse individuals arerespected.

TBS is promoting the appointment of female managers and has
set a goal of increasing the ratio of female managers to 20% ormore by FY2026. As part of this initiative, TBS TELEVISION, INC. isundertaking to improve what is a labor environment peculiar tothe broadcasting industry, including late-night overtime. As of July
1, 2022, there were 21 women, in management positions such asline bureau chief, center chief, and line department head, which
are responsible for core businesses, accounting for 15.1% of totalcompany management.
We are also progressing with organizing environments in which
diverse personnel may continue working even when confronted
with various life events such as childrearing, caregiving, or medical
conditions. We are carrying out career support training for employees of all ages, from youth to seniors, as well as family-friendly boss
training for management positions. With
these initiatives, in cases of childbirth in％
FY2019, women took parental leave at a
Ratio of female managers at
100% rate, while men did so at a rate of
TBS TELEVISION, INC.*
19.1%, a year-on-year increase.

14.3

（名）

Numbers of female250
employees
and proportion of
12.5
11.4
female managers*200*As of February 1, 2022

（％）

14.3

16

13.2

13.5

Ratio of female
managers (%)

50
0

206

2017

228

2018

4,961

Participation rate of employees shareholding association

10.0％

12

150
100
Number of female employees

TBS has long supported employee asset formation through its
employee shareholding association. With a campaign of new incentives on the occasion of the company’s 70th anniversary, however, many employees who had not previously taken part decided
to participate, raising the participation rate from 10% to nearly90%.
As part of our employee welfare policy, the employee shareholding association program financially supports future designsof employees. In addition, owning shares of stock in one’s own
company fosters a sense of participation in the management of
the company on the part of employees.
With employees united in achieving the targets of TBS Group VISION
2030, further improving the corporate
Number of TBS Employee
value of the TBS Group, they can
Shareholding Association
Participants
thereby live their respective life plans
to the fullest.

242

2019

258

268

4

2020

2021

86.7％

8

0

(FY)

*TBS TELEVISION, INC., as of February 1

FY2021

FY202273

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
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Value Creation Story

Performance andCorporate Data

Sustainability

Corporate Officers

Board of Directors Skills Matrix
The skill set required for the Board of Directors of TBS HOLDINGS, INC. and the skillsof each individual director are as follows.
TBS has formulated TBS Group VISION 2030
(hereinafter the “VISION 2030”), and iscarrying out a reformation from a mediagroup to a content group.
This is a breakdown of the skills necessary to achieve such aspects of VISION
2030 as improving corporate value throughenhancing broadcast value, executing the
EDGE expansion strategy, resolving materialities (key issues), and ESG management.

No.

Name

Present Position at
TBS HOLDINGS, INC.

5

4

2

9

Attendance atBoard of Directors

Nomination
Compensation
Advisory Committee Advisory Committee

1

Shinji Takeda

Chairman & Board Director

13/13 (100%)

2

Takashi Sasaki

President & Representative Director

13/13 (100%)○3

Toshiaki Kawai

Representative Director

13/13 (100%)○

4

Tatsuo Sugai

Board Director

5

Shoichi Watanabe

6Corporate
Management

Finance andAccounting

ESG

Legal andCompliance

Human
Resources
Management

○

○

○

○

○

○

○

○

13/13 (100%)○○

Board Director

13/13 (100%)○○

Masaya Chisaki

Board Director

13/13 (100%)

○

○

7

Hitoshi Kashiwaki

Outside Director

Independent

Outside13/13 (100%)

◎

◎

○

8

Yosuke Yagi

Outside Director

Independent

Outside13/13 (100%)

○

○

○

9

Makoto Haruta

Outside Director

Outside13/13 (100%)

○

○

○

Concentric circles signify chairman

○

○

○

6

8

EDGE Growth Strategies
Digital Domain○

Independent

○

3

7

Competitive Strategy
Media Content Business

1

Global Domain

Experience Domain

○

○
○

○
○

○
○

○
○

○

74

Message from the
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Corporate Officers

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Corporate Officers (as of June 29, 2022)■ Board Directors

Concurrent
position

Shinji Takeda

Takashi Sasaki

Toshiaki Kawai

Tatsuo Sugai

Shoichi Watanabe

Chairman &Board Director

President &Representative Director

Representative
Director

Board Director

Board Director

Chairman & Director, TBS TELEVISION, INC.
Director, StylingLife Holdings Inc.

President and Representative Director,
TBS TELEVISION, INC.

Executive Vice President and Board Director,
TBS TELEVISION, INC.

Senior Managing Director, TBS TELEVISION, INC.

Managing Director, TBS TELEVISION, INC.

Director, MBS Media Holdings, Inc.

Appointed as Director

June 2007

June 2015

June 2014

June 2015

June 2018

Number of shares held

54,34550,06939,29530,33518,891

Masaya Chisaki

Hitoshi Kashiwaki

Yosuke Yagi

Makoto Haruta

Board Director

Independent
Outside Director

Independent
Outside Director

Independent
Outside Director

Managing Director, TBS TELEVISION, INC.
Concurrent
position

Outside Director, ASICS Corporation

Representative Director, people first, Ltd.

Representative Director and CEO, betaCatalyst Inc.

Outside Director, Matsuya Co., Ltd.
Outside Director, Kewpie Corporation

Director, ICMG Co., Ltd.
Chairman and Director, IWNC Inc., Ltd.
Auditor, GE Healthcare Japan Corporation

Chairman and Director, ExaWizards Inc.
Adviser, Money Forward, Inc.
Director, Panasonic Corporation

Appointed as Director

June 2018

June 2018

June 2020

June 2020

Number of shares held

21,384

0

0

0

75

Message from the
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Corporate Officers

Long-Term Strategy andMedium-Term Management Plan

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Performance andCorporate Data

■ Corporate Auditors

Tomohiko Nishino

Tetsuya Ichikawa

Teisuke Kitayama

Mie Fujimoto

Somitsu Takehara

Standing Statutory Auditor

Standing Statutory Auditor

Auditor

Auditor

AuditorAdvisor, Sumitomo Mitsui Banking Corporation
Concurrent
position

LawyerPartner (lawyer), TMI Associates

Certified Public Accountant
Director & Chairman, ZECOO Partners Inc.

■ Executive Officers
Executive Officers

Senior Executive Officers of TBS Group

Executive Officers of TBS Group

Project Executive Officer

Kunio Tokui

Ryujiro Abe

Mikio Kokubu

Keishi Takahashi

Yasushi Gemba

Ken Sonoda

Takanari Mimura

Jin Yokoi

Hideki Isano

Kazumo Inoue

Shigetoshi Ida
Mei Takeuchi

76

Message from the
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Strategies for
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Value Creation Story

Sustainability

Performance andCorporate Data

Corporate Governance

Basic Corporate Governance Philosophy
TBS has a responsibility to contribute to the market economy
growth as a listed company. And at the same time, as a certified
broadcasting holding company entrusted with radio waves,which are finite resources, having broadcasters under its umbrella, TBS is the company empowered with a high public mission.
Our basic approach to corporate governance is to improve themanagement efficiency of the Group and maximize TBS’s corporate value, while fulfilling the social responsibility as a certified
broadcasting holding company.

Corporate Governance Structure (as of June 29, 2022)
General Meeting of Shareholders
Nomination Advisory
Committee

Appointment /Dismissal

ReportingConsultation

Compensation Advisory
Committee

Consultation

Recommendation

Appointment /Dismissal

ReportingBoard of Directors

Board of Corporate Auditors

Auditing of Business Execution

Coordination

Appointment / Supervision

Reporting

ReportingBusiness Execution Division of TBS and its Group Companies

Investigation Order

Supervision

Whistleblowing

ReportingInternal Audit / Internal Control Assessment

Comprehensive Risk Management Committee(Group)Internal Business / Accounting Audit

Improvement ofInternal Control

SupervisionCorporate Conduct Committee (Group)

Direction

ReportingGroup Executive Committee

Reporting

TBS Hotline

Reporting
ReportingBoard of Standing
Directors

Coordination

Accounting Auditor

Office of InternalBusiness Audit

President
Appointment

Supervision

TBS employs a structure of governance by a Board of Directors
and a Board of Corporate Auditors. Unless otherwise indicated,the Board of Directors of TBS meets monthly to carry out decisions regarding crucial administration of business matters andreporting of crucial matters. Additionally, TBS has appointeda Board of Standing Directors as a consultation organ for thepresident’s decision-making and administration of business matters. This Board conducts deliberations concerning such mattersas overall management administrative policy including group
operations. As of this writing, the Board of Standing Directors
is composed of Standing Directors and Executive Officers, andmeets weekly unless otherwise indicated. The Board of Standing
Directors further comprises subcommittees on such matters asbudget and investment and lending, for expert consideration.

Coordination

Reporting
ReportingDirection

Corporate Organizational Description

Appointment /Dismissal

Recommendation

Auditing of Internal Control
Accounting Audit

Proportion of Independent Outside Officers

Composition of Boardof Directors

33%

Composition of Boardof Corporate Auditors

60%
77Corporate GovernanceInitiatives for Improved Supervisory Functions of Boardof Directors
In order to establish promptness, transparency, and fairness indecision-making, in June 2020 TBS changed the number of Directors on its Board of Directors from 17 to nine. In this way, thecomponent distribution ratio of Independent Outside Directors
on the Board of Directors rose to one-third or more.
For the Nomination and Compensation Advisory Committees,
TBS changed and enhanced its policies in January 2021 such that,in addition to Outside Directors serving as Chairmen, Outside Directors would constitute half of these Committees overall.
TBS will improve the efficacy of its Corporate Governancegoing forward by clarifying the roles of the Supervisory and Administrative Organs.

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Nomination Advisory Committee
TBS has established a Nomination Advisory Committee which
deliberates on the appointment and dismissal of Directors andthe President and Representative Director. Outside Directors constitute half of the Committee. An Outside Director also serves as
Chairman. Thus, the Committee’s independence and objectivity
are guaranteed.
The Committee debates the Representative Director succession plan and the mentoring of candidates for succession, and reports the results to the Board of Directors within the appropriate
scope.
The Committee met three times in FY2021, as it did in FY2020.
All members attended all meetings.

Diversity in Directors

Compensation Advisory Committee

By choosing as the three TBS Outside Directors persons with extensive knowledge and experience, who all have experience incorporate management, and excel in such fields as finance andaccounting and organizational human resources, TBS ensures diversity and multifacetedness.
Whereas no female Directors have been appointed as of thiswriting, TBS is making efforts such that qualified persons may be
appointed. Pursuant to the stipulations of the Japanese Broadcast
Act, foreigners are not eligible for appointment as Directors.

TBS has established a Compensation Advisory Committee which
deliberates on the system and level of Director compensation.
Outside Directors constitute half of the Committee. An Outside
Director also serves as Chairman. Thus, the Committee’s independence and objectivity are guaranteed.
Drawing on policies established by the Board of Directors,
the Committee deliberates on the system and level of Director
compensation from a standpoint of objectivity and fairness, andreports to the Board of Directors.
The Committee met four times in FY2021, compared with fivetimes in FY2020. All members attended all meetings.

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Executive Officer System of TBS GroupWe have introduced the Group Executive Officer System forGroup companies with the aim of expeditiously implementing
management strategies, and improving the effectiveness of theirbusiness execution. Presidents and Representative Directors of

six TBS Group companies were appointed as Executive Officers of
TBS Group in FY2021.
The Group Executive Committee of TBS Group meets weekly,
unless otherwise indicated. This Committee comprises Directors
of TBS HOLDINGS, INC., Executive Officers responsible for theGroup, and Executive Officers of TBS Group. It serves as a body forliaising and consulting among companies, in order to supplement
the business execution of the President of TBS HOLDINGS, INC.
This Committee has been incorporated as a part of the corporate
governance system.

TBS Corporate Conduct Committee (Group)
Function: To achieve suitable and efficient business execution, and to maintain and increase corporate
value as a corporate group
Membership: TBS and TBS Group Directors and Outside
Committee Members
Jurisdiction: 1. D evelopment, evaluation, and improvement of the internal control system
2. Establishment of corporate ethics
3. Risk management and the promotion of
appropriate and effective business operations
4. Information disclosure system
5. Advising the Board of Directors for eachGroup company

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Message from the
President

Corporate GovernanceLong-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Evaluation of Effectiveness of Board of Directors

Evaluation and Analysis of Effectiveness of Board of
Directors
In order to improve sustainable corporate value and maximize
collective shareholder profit, we at TBS recognize the importanceof having the Board of Directors sufficiently fulfill its intendedroles, as well as the importance of improving the Board’s functions. To improve the effectiveness of the Board of Directors, theBoard has been conducting self-evaluations since FY2015.
In FY2020, TBS carried out a change in the composition of
the Board of Directors, increasing the number of its Independent
Outside Directors. In order to obtain a more objective view withregard to the mechanism of the Board’s effectiveness evaluations,surveys and personal interviews of each Director and Corporate
Auditor were conducted with the assistance of Japan Board Review Co., Ltd. as a disinterested third party. The Board of Directors
held discussions and conducted evaluations of effectiveness on
the basis of this third party’s report.
Effectiveness Evaluation Method (Self-Evaluation)
Surveys and Personal Interviews with Each Director and Auditor
Conducted with Third-Party Assistance

Report Produced by Third Party

Outline of Effectiveness Evaluation and Future Concerns Raised Thereby

Outline of
Evaluation

From the results of the Board of Directors Effectiveness Evaluation, the following matters were identified:(1) Size and Composition of Board of Directors
The size, composition proportions, and membership of the Board were assessed as being generally appropriate.
(2) Operations of Board of Directors
Owing to changes in the composition of the Board of Directors, tensions have emerged in debates, leading to vital debates
regarding the formulation of such pillars of management strategy as the TBS Group Medium-Term Management Plan 2023
and TBS Group VISION 2030.
(3) Group GovernanceBy separating the composition of the Boards of Directors of TBS HOLDINGS, INC. and its core subsidiaries, as well as the restructuring of subsidiaries, systems have been put in place for effective supervision as TBS HOLDINGS, INC. of the TBS Group
as a whole, for the purpose of achieving the TBS Group’s medium- and long-term plans.

FutureConcerns

On the basis of the present effectiveness evaluation, the Board of Directors recognizes the following as concerns to be dealt
with going forward:(1) Ongoing Examination of Medium-Term Management Plan 2023 and VISION 2030
To respond to changes in business environment, hold debates regarding management resource allocation and financial strategies aimed at medium- to long-term business model conversion, and examine on an ongoing basis such matters as supervisionof progress and follow-up of performance situations for TBS Group Medium-Term Management Plan 2023 and TBS GroupVISION 2030.
(2) Enrichment of Workings Underpinning Debate on Part of Board of Directors
Devising reporting methods will be enriched such that the executive-side decision-making processes can be understood by
Outside Officers, as will opportunities for information sharing and exchange of opinions among Outside Directors and Corporate Auditors.
(3) Enhanced Group Risk Management
By establishing systems in the course of group restructuring, Group Governance and Risk Management utilizing the Group
Executive Committee and the Group Board of Corporate Auditors will be enhanced.
(4) Roles of Nomination and Compensation Advisory Committees, and Board of Directors’ Communication
The Nomination and Compensation Advisory Committees were assessed as generally functioning properly. With regard to
the succession plans being investigated by these Advisory Committees, the Committees will proactively coordinate and share
information with the Board of Directors.

Discussion/Evaluation by Board of Directors
Based on these findings, TBS will continue to improve the effectiveness of its Board of Directors.

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Corporate Governance

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Officers’ Compensation

Policies and Procedures Concerning Officers’ Compensation
By resolution at the General Meeting of Shareholders on June 27,
2014, TBS has determined that the maximum total compensation
for all Directors and Auditors respectively will not exceed ¥900
million annually (exclusive of salaries paid for Directors who arealso employees), ¥100 million annually.
At the General Meeting of Shareholders on June 27, 2019,a restricted share-based remuneration system was introduced. It
was determined that, for Directors other than Outside Directors,
the maximum total compensation of the above amount for grantsof restricted stocks will not exceed ¥180 million annually.
Basic Policy on remuneration for directors is established on
the basis of reports from the Compensation Advisory Committee,
which is an advisory body to the Board of Directors. The Compensation Advisory Committee deliberates on such aspects of Director
Compensation as system, level, and constitution, based on the Basic Policy for Compensation by advisory to the Board of Directors,
which decides on these factors on the basis of the Committee’s
Report.
Director compensation is composed of base compensation,
performance-based compensation, and share-based remuneration. Outside Directors only receive base compensation, as they
are independent of administration of business execution. Auditor
compensation is determined through discussions by the auditors,
within the total annual compensation limits.

Basic Policy for Officers’ Compensation, Etc.
■ Such compensation shall be the basis for securing and maintaining superior personnel and stable management for implementing
improved corporate value and accomplishing our mission of public service;■ The compensation system shall focus on the shareholder viewpoint, and establish co-ownership of value between the officers and ourshareholders; and■ The process of determining compensation shall be objective and highly transparent, in accordance with deliberations on the part of
the Compensation Advisory Committee.

Composition of Director Compensation
Item

Form of Payment

OutlineBase Compensation

Fixed, CashMonthly Compensation (Monthly Pay)
Determined by taking into consideration for each Director such factors as position, strategic
divisions that given directors are in charge of, and changes in business environment.

Performance-based
Compensation

Variable, Cash

Annual Incentive Compensation
With the aim of giving incentives for performance achievements per fiscal year, qualitative
assessments are made of (i) the extent of achievement of numerical targets for consolidated
operating profit, and (ii) achievement situations of strategic divisions that directors are variously responsible for.

Share-based
Remuneration

Variable,
Shares of Stock

Long-Term Incentive Compensation
With the aim of giving incentives for improving medium- to long-term shareholder value andestablishing co-ownership of value between the directors and shareholders, grants are madeannually for restricted share-based remuneration (RS).

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Corporate Governance

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Cross-shareholdings/Takeover Defense Measures

Cross-shareholdings
We are aware that, in order to maximize the profits that the TBS
Group holds in common with its shareholders, it is incumbent upon
us both to strive for improved corporate value and to fulfill ourhigh public mission as a certified broadcasting holding company.
From these standpoints, we hold shares of stock in corporations
that, upon comprehensive consideration of such factors as cooperative relations, transactions, and business partnerships, we havedetermined to be necessary as part of our management strategy.
We sell off cross-shareholdings where we have determined,
upon inquiry into recent business fiscal year-end conditions, thatno significance can be found in holding thereof. On an annual
basis, for individual cross-shareholdings, the Board of Directors
comprehensively considers such factors as objectives for holding
said shares, relational situations, and economic rationality, andexamines the appropriateness of continuing to hold said shares.
As regards economic rationality, the Board of Directors examines benefits and risks associated with shareholdings with TBS
Group capital costs as a reference.
In terms of exercise of voting rights, TBS Group scrutinizes
the content of agenda items and exercises such rights judiciously,from a standpoint of whether such action will contribute to medium- to long-term improvement of corporate value, while also
respecting the management policies of businesses in which we invest. However, in situations such as where there is reason to thinkthat TBS Group’s corporate value may be harmed or that there
may be serious breaches of laws and ordinances, TBS Group willconduct sufficient dialogue with businesses in which we invest as
necessary, including checking the aims of agenda items, and makedecisions in a careful manner.
FY2021 Sales of Stock: ¥20.161 billion
Eight brands, all or in part

Overview of the “Policy for Responding to Takeover
Attempts”
At a TBS Board of Directors meeting held on February 28, 2007,
the Company formulated a “Policy for Responding to Takeover
Attempts.” At the Ordinary General Meeting of Shareholders
held on June 28, 2007, this Policy and its continued application
were approved through the approval of a majority of shareholders who were entitled to exercise their voting rights.
This policy was put in place in accordance with the Companies
Act and other corporate laws and regulations, governmental
guidelines issued by the Ministry of Economy, Trade and Industry
and the Ministry of Justice, and rules and regulations issued by the
Tokyo Stock Exchange, and as a result of thorough considerationof the impact on shareholders’ rights and their exercising, andthe impact of Company shares on the market. As a publicly traded company, TBS Group has a responsibility to contribute to thedevelopment of the market economy, while at the same time, we
believe we need to maintain both our public nature as a broadcasting station entrusted with a finite broadcast spectrum, andour autonomy, diversity, and independence in order to uphold
our impartiality as a news organization.
An important feature of takeover defense measures is that aslong as a purchasing group which has the intent to acquire shares
representing 20% or more of the voting rights complies with thepolicy, a General Meeting of Shareholders shall in principle beheld prior to the implementation of any takeover defense measures (measures to counter takeover bids), and shareholders will
be entrusted with the decision as to whether or not to implement
such measures. Thus, our objectives are to enable securing information and time sufficient for our shareholders to make pertinent
decisions, and for TBS Group management team to make alternative proposals, carry out evaluations, investigations, negotiations,and other measures of such as proposals relating to large-scale
takeover actions by purchasing groups.
However, if the Special Committee for Corporate Value Evaluation, an advisory body independent of the Board of Directors,
evaluates and examines the takeover proposal and recommends
that the takeover defense measures not be exercised, then saidcountermeasures will not be implemented without waiting for
the Ordinary General Meeting of Shareholders to be convened.
We thus have plans in place to prevent these measures being used
for management’s own self-protection.
In May 2021, we enacted TBS Group VISION 2030, our decadalplan, and TBS Group Medium-Term Management Plan 2023,
aimed at achieving VISION 2030, and we are executing an audacious management reformation aimed at generating medium- tolong-term growth. We believe that it will take some time for these
efforts to bear fruit and manifest as a reasonable share price,and for this reason, it is necessary that we maintain our present
policy of response. In October 2021, we also had an exchange of
opinions between our Outside Directors and our Outside Auditors
concerning the maintaining of our present policy of response.
Following these processes, we resolved to maintain and update the present policy of response at the May 2022 meeting of
the Board of Directors.
Details of the “Policy for Responding to Takeover Attempts”
are available on the TBS company website.

Notice Regarding Renewal of Plan for Responding to Takeover
Attempts
https://ssl4.eir-parts.net/doc/9401/ir_material4/183129/00.pdf

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President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Compliance

Compliance System
As a core aspect of promoting compliance within the TBS Group, aCompliance Office has been established under the Compliance Division that can provide employees and staff with guidance as to how
to prevent violations of laws and regulations, internal rules, ethics,
and harassment. In the event there is a problem with compliance,
the department in charge works in collaboration with the Divisionof Human Resources and Labor, seeking advice from outside lawyers if necessary to promptly investigate the problem. There is inplace a system to take measures as appropriate, including internal
disciplinary action, investigation of causes, and formulation of
measures to prevent recurrence.

Internal Reporting Systems
The TBS Hotline has been established in order to purge any sort offraudulent activity on the part of the TBS Group. This can be usedby not only employees and staff of the TBS Group, but also former
employees and business partners to report any wrongdoing thatthey may become aware of. Whistleblower confidentiality is maintained, and they may not be subject to any disadvantageous treatment whatsoever. Points of contact are set up within the company,
and also at an external lawyer’s office.
Furthermore, separate from the TBS Hotline, the Personnel
Department has set up a Harassment Desk which can respond toinquiries at any time regarding sexual harassment and power harassment. If instances of harassment are found, then action will betaken in accordance with employment regulations.

Program Improvement Initiatives

TBS strives for program improvement while correspondingly
applying the TBS Broadcasting Standards, which TBS
independently enacted when it first went on the air in 1951
and revises as occasion demands, and the broadcasting
standards of the Japan Commercial Broadcasters Association.
We have drafted the TBS TELEVISION, INC. Citizens’
Protection Operating Plan, with the objective of protecting
citizens in the event that Japan faces armed aggression orother threat by information propagation of the issuance andcancelation of warnings and evacuation notices, and effectpropriety in program production with our Policy on Rejectionof Anti-Social Forces.
The Program Council that we are required by the
Broadcast Act to establish makes reports and gives opinions
in response to TBS consultation, and TBS takes necessary
steps in respect thereof.
We also air TBS Review, an examination program thatserves as a point of contact between TBS and our viewers,
twice monthly, in the morning on the second and fourth
Sunday of the month. Here, we take on and examine a broad

range of problems facing TBS and broadcasting as a whole.
Regarding program production outsourcing transactions
between TBS and outside production companies, we treatsuch firms at all times as partners on equal footing, upholding
broadcast culture as set down in our Independent Standards
Pertaining to Program Production Outsourcing Transactions. In
this way, we have a basic attitude of maintaining and cultivatingclose mutual cooperative relations and proactively furtheringtransactions in which fairness and transparency are assured.
Regarding the Broadcasting Ethics and Program Improvement
Organization (BPO), which The Japan Commercial Broadcasters
Association and Japan Broadcasting Corporation (NHK) launchedwith the objective of contributing to accurate broadcasts andimproved broadcasting ethics, given the significance offairness and social impact in the broadcasting business, TBS
Group responds to complaints about broadcasts and problemsof broadcasting ethics from an autonomous, independent
third-party stance, to protect the basic human rights ofviewers while ensuring freedom of speech and expression.

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Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

TBS Group Code of Conduct

Providing Content, Information,and Services That Enrich the Mind
— Pledge to Our Customers■ Offer wonderful moments to each and every person
We will continually strive to be inventive and go beyond
time and place to provide high quality, captivating content,
events, products, and services that enrich the mind.

■ Communication of fair, just and accurate
We will honor the freedom of expression, strive to disseminate fair, just and accurate information, and fulfill our
mission as a media organization.

 espect for feedback from viewers, listeners, and■R
customers
We will listen closely to feedback from viewers, listeners,
and customers and continually provide a worthwhile timeto ever more people.

Respecting Diverse Values andStriving to Make a Positive
Contribution to Society— Pledge to Society

Aiming to Realize Our Philosophy
with a Free Spirit— Pledge to Our Staff■ Respect for human rights and diversity■ Development of outstanding talents

We uphold human rights, respect diverse values, and reject
all forms of discrimination and prejudice.

We develop outstanding talents that have a powerful sensitivity and the capacity to build the future. Accepting ofdiverse working styles, we will continue trying new things
with a view to the future in the world.

■ Philanthropy and environmental preservation
We value our bonds with society and harmony with nature,
and will work together with a sustainable society to build abetter environment.

■ Legal compliance
As a member of a media group, we have a strong sense of
ethics, uphold laws and social norms, respect all faiths, andconduct ourselves with fairness and transparency.

■ Building uninhibited workplaces
Because people accepting each other with a free spirit areimportant to us, we build workplaces where everyone candevelop their creativity to the fullest.

■ As a member of the GroupIn recognition of ourselves as a member of the TBS Group,and towards the realization of our corporate philosophy,
we seek to work with all staff to make ourselves a mediagroup second to none.

April 1, 202083

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Performance andCorporate Data

Sustainability

Information Security and Protection of Personal Information

One key pillar of our EDGE expansion strategy is expanding into
the digital field through enhanced content streaming to a diverse
range of devices and cultivation of digital content. With advancesin data-driven content streaming utilizing user data and content
production utilizing digital technologies come increased risk of cyberattacks and leaks of personal information. In response to theseheightened risks, TBS is undertaking to strengthen its information
security and personal information protection systems.

Information Security
As cyberattacks become more sophisticated and skillful, cybersecurity becomes an extremely important element of modern
broadcasting infrastructure. TBS has joined ICT Information Sharing And Analysis Center Japan (ICT-ISAC), a general incorporated
association composed of such firms as communications houses andbroadcasters, and strives to ensure cyber security in broadcasting
infrastructure in accordance with ICT-ISAC guidelines.
As an independent initiative, TBS founded TBS CSIRT, an organization dedicated to security, which is enacting various security
measures.

Protection of Personal Information
With the Revised Act on the Protection of Personal Information
taking effect in April 2022 and awareness of rights regarding personal information rising all the time, in order to promote a balance
between the protection and use of personal information, and torespond to risks associated with increased data flows between
Japan and the outside world, TBS is enhancing its management
systems, from its pre-existing broadcasting business-centric management systems to managing legal restrictions concerning privacy
protections online.
As part of these efforts, we have revamped our management
systems with a Personal Information Management Committee, andnewly appointed a Chief Privacy Officer (CPO) with responsibility
for these matters. We have also established an internal control
system and built a Personal Information Management Secretariat,
functioning as a standing organization with responsibility for practical operations.
We have further compiled the handling rules across all the primary companies of the TBS Group and enacted Personal Information Handling Regulations which encompass the Group as a whole.
By establishing systems allowing appropriate personal information
management on the basis of uniform standards for the entire
Group, we will strive for proper protection with regard to the handling of personal information.

Personal Information Protection
Management System
President, TBS HOLDINGS, INC.
Office of Internal Business Audit

Chief Privacy Officer (CPO)and Personal Information
Management Committee Chairman

Newly Created

Personal Information
Management Committee
Chairman: Executive Officer with Responsibility
for Legal Affairs

Responsible Organ
Personal Information
Management Secretariat,
Holdings Legal Affairs and Compliance Division

Group Responsible Organ
Holdings GroupManagerial Planning Bureau

Group Companies

Responsible Parties

Newly Created

Newly Created

TBS HOLDINGS, INC.,
TBS TELEVISION, INC.

Responsible Parties

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Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Group Internal Controls and Risk Management

Risk Management Systems

Comprehensive Risk Management Systems

In order to establish and promote the internal control system
within the TBS Group, the Company has established the TBS Group
Corporate Action Committee chaired by the President to achieve
appropriate and efficient business execution and to maintain andincrease corporate value as a corporate group. The committee
comprises the directors of the Company and the Group, as well as
outside committee members (lawyers), and this is responsible forthe following matters.

1. D evelopment, evaluation, and improvement of the internal control system
2. Establishment of corporate ethics
3. Risk management and the promotion of appropriate andeffective business operations
4. Information disclosure system
5. A
 dvising the Board of Directors for each Group company

Specific methods for risk management are overseen and promoted by the TBS Group Integrated Risk Management Committee which has been established as a subcommittee supervised by
the TBS Group Corporate Action Committee. The Integrated Risk
Management Committee in principle meets semiannually in April
and November, and receives reports regarding risk management
for that period.

Board of Directors

TBS Group Corporate Action Committee

TBS Group Comprehensive Risk Management Committee

TBS HOLDINGS, INC.

TBS TELEVISION, INC.

TBS Group Comprehensive
Risk Management Secretariat(Legal and Compliance
Discourse Center)

TBS Group

Head of Risk Control

Head of Risk Control

Head of Risk Control

Deputy Head of Risk Control

Deputy Head of Risk Control

Deputy Head of Risk Control

Risk Control Manager

Risk Control Manager

Risk Control Manager

Specific Methods for Risk Management
This committee identifies individual potential risks reported fromTBS HOLDINGS, INC. and Group companies and aggregates these
based upon their degree of impact and their frequency with whichthese materialize. As well as working to visualize risks, if a riskmaterializes, this makes efforts to control the risk by analyzing why
this happened and putting in place improvement measures withineach department to prevent its recurrence. Through the steady application of these efforts, the Group as a whole properly addresses
these risks, thus hoping to become an organization trusted bycustomers, stakeholders, society, and our employees.

85Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Main Risks and Responses■ Main Risks

Risks for the Media Content Business1D ependence on advertising revenue from terrestrial television broadcasting and domestic economic
fluctuations

Revenue from terrestrial television broadcasting is closely linked
to advertiser performance and the psychology of the consumers
who buy from advertisers. Furthermore, advertisers are taking
the opportunity afforded them by the COVID-19 pandemic toaccelerate their moves to shift from fixed ad spending (i.e., program sponsorship with half-year contracts) to variable ad spending (i.e., one-off sponsorship for a particular or special programand spot ad). Advertisers have also been making a greater shift todigital since online advertising revenue first exceeded advertising
revenue from terrestrial television broadcasting in 2019.
TBS
Responses

 errestrial TV’s strengths are its broad reach and its solid●Tcost-performance. As we catch our breath in the midst of the
COVID-19 pandemic, the value of TV is being re-evaluatedand is rapidly recovering.
● We are proceeding with a review of advertising value
through utilization of audience data, and are undertaking
both a qualitative (i.e., unit price) increase and a quantitative(i.e., commercial placement amount) expansion of TV commercial placement.

Consumption trends continue to be unclear and social uncertainty persistent on the basis of post-COVID-19 declarations. It isalso impossible to estimate the impact on the Japanese economy
of such factors as the political uncertainty caused by the Russian
invasion of Ukraine, rising fuel prices, grain shortages, supply
chain instabilities, and sharply rising inflation in the U.S. It is thus
probable that individual consumption will decline and the advertising market will shrink.

TBS
Responses

 o respond to such environmental changes, we are respond●T
ing to more fine-grained sponsor requirements by carryingout product development of what we call Smart Ad Sales, orSAS, in which dates and positions can be designated startingwith a single commercial, allowing more flexible commercial
placement. We are also forging new relations with corporations, such as carrying out SDGs Week, in which we work inunison with corporate partners in fomenting such as social
awareness of SDGs.

2

Intermedia competition and content acquisition

The forecast for TV and other audio-video propagation media isthat there will be diversification therein, such as progress in mass
adoption of online streaming in addition to terrestrial, satellite(BS and CS), and cable, leading to an ever more intense scramble over so-called “disposable time.” Conversely, as demand forcontent increases and streaming platforms mature, the scope forrevenue will grow sustainably.

TBS
Responses● I n addition to promoting our TVer free streaming service andour subscription streaming service Paravi which is operated
by Premium Platform Japan, Inc., which we started in partnership with such firms as TV TOKYO Holdings Corporation,
we are also proactively providing content to such major
platforms as NETFLIX and Disney+. Large viewers are present
at these diverse outlets, and we will pursue maximizing ourreach by corralling these people’s time. We will also accelerate the speed of our investment in content itself.

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Message from the
President

Main Risks and Responses

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

■ Main Risks

3C opyrights and other intellectual property rights

When deploying multi-use content, TBS Group does so with due
regard for the rights of various copyright holders, etc. In cases
where permission cannot be obtained from rights holders, or if bysome mischance inappropriate action has been taken with regard
to copyright holders, etc., it is possible that TBS Group businessresults and financial position may be affected by such measures as
broadcast bans and litigation for damages.
4

Capital expenditures

Turning to the core infrastructure that underpins the TBS broadcasting and streaming businesses, we are transitioning fromconventional limited-use purpose-built devices to standard
general-application equipment. In the course of so doing, there isa possibility of business process interruption, etc., resulting fromloss of important data or unforeseen faults in developed software.
There is also a possibility that such matters as unforeseen
cost increases in large-scale software development or significant
delays or discontinuances in crucial and essential system development will have an impact on business continuity.

5

Technology, systems, and security

The speed of technological innovation and changes in consumer
demand are very rapid, and should supplementary investment
over and above what initial plans call for become necessary, suchas when technologies and systems that have been invested inand developed become obsolete faster than initially forecast, andwhen either greater revenue or business process efficiency in linewith the amount of investment cannot be expected, there is apossibility that TBS Group business results and financial position
may be affected, such as impairment losses on non-current assets
and increase in depreciation, etc.

TBS
Responses

There are risks of system damage due to cyberterrorism orleaks of personal or confidential information due to ransomware
as all business processes proceed with Internet connectivity andmoving into the Cloud.

TBS
Responses●T BS Group is enhancing TBS CSIRT, its dedicated security response team, and undertaking a variety of security countermeasures. While we are undertaking responses such as taking
out cyber security insurance against the worst-case scenario,
there is a possibility that TBS Group business results and financial position may be affected depending on scale.

● We are intentionally enriching human resources, including bringing personnel into important fields and securing ICT-related
personnel. In conjunction, we are working on technologicalinnovations such as promoting greater business process efficiency in our production and management divisions.

87

Message from the
President

Main Risks and Responses

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

■ Main Risks

Lifestyle Business Risks

Real Estate and Other Business Risks

6

7

Consumer lifestyle changes and cost structures

Turning to our Lifestyle Business, as COVID-19 becomes a longterm condition, there is a possibility of opportunities to gain revenue may be lost due to such factors as reduced customer flow due
to store closings, business hours being shortened, or constraints
on movements of people, as well loss of inbound demand or
supply chain instability or disruption, thus affecting TBS Groupbusiness results and financial position.

TBS
Responses●H ome shopping and streaming businesses expanded significantly due to demand by people staying home due to
COVID-19. Whereas we anticipated that recovery from the
COVID-19 pandemic would take a significant amount of time,
many industries have adapted more rapidly than forecast.

Real estate and lease market

We forecast reductions and closings of office space due to falling
revenue by corporate tenants and changing work situations suchas telework due to the effects of COVID-19.

TBS
Responses●T here is a consumer trend of shifting from consumption ofthings to consumption of experiences, in which consumers are
finding value in the experiences that can be obtained withthe purchase of goods and services. In response to this phenomenon, we at TBS Group have established Realty Strategy
Bureau which carries out investigations into efficacious utilization in addition to conventional real estate management.

8

Investment securities market price evaluations

While changes in market price values of investment securities
do not directly affect cash flow, there is a possibility that indicesindicating business results and financial position may be affected.
In addition, investment securities holdings are evaluated appropriately at the end of the consolidated fiscal year, and businessresults and financial position may be affected by such factors as
impairment losses.
9Handling of personal information, etc.

TBS Group uses and retains data of various types in in-house
databases and external Cloud services. Turning to handling of
personal and other information, while we attend closely andimplement sophisticated security countermeasures, there is a possibility that TBS Group business results and financial position may
be affected by damaged confidence in and liability for damages
by TBS Group in the worst-case event of such as leaks, hacks, ormisappropriation of personal information, or information leaksor system damage caused by ransomware.

88

Main Risks and Responses

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

■ Main Risks
10 Impact of legal regulations

TBS is regulated by the Japanese Broadcast Act and related laws
and ordinances as a Certified Broadcasting Holding Company
as stipulated by the Japanese Broadcast Act. Additionally, thetelevision broadcast business is regulated by the Radio Act, theBroadcast Act, and other laws and regulations.
Under the Japanese Broadcast Act, a company may refuse
to enter or record any foreigners, etc., as stipulated by the Act,in the shareholders’ register if they will comprise, either directly
or indirectly, one-fifth or more of the company’s voting rights. In
addition, pursuant to the stipulations of the Japanese Broadcast
Act and the enforcement regulations thereof, should the total
proportion of shares of TBS stock either held or perceived to beheld by a single party exceed 33% of the voting rights of all TBS
shareholders, said party shall be considered to have no voting
rights in excess of said 33%.

TBS
Responses●M oney usage in production processes is changing with therenovation of program presentation. Having been afforded
an opportunity to eliminate waste from established customs,
we are in the process of establishing a sustainable cost control
structure.
● While there are limits on the number of attendees at live
entertainment events such as theatrical plays or concerts,
our live streaming business has been developed and adopted
anew, contributing to increased profitability ratios. As live
streaming allows sales above and beyond hall capacities, weare also successfully securing repeat audiences.
● We are taking steps regarding live streaming content, such as
profiting on differences in ticket prices through the number
and positions of cameras, and providing multiple products
from a single piece of content, thereby promoting diversification of revenue streams.

12 Impact of climate change and disasters

In the event of an actual or potential disaster, broadcasters are
obligated under the Japanese Broadcast Act to conduct broadcasts for the prevention or mitigation of damages from suchdisasters. TBS’s revenues may experience decrease owing chiefly
to suspension of airing of previously scheduled commercials by
broadcasting special emergency news report programs in theevent of major disasters, etc., amid concerns for impact of climatechange.

TBS
Responses●T BS also endorses TCFD recommendations, and as of this writing is proceeding with analyses of risks and opportunities thatclimate change affords our business.

11 Impact of the COVID-19 pandemic

The TBS Group Media Content Business segment is experiencing
increased sales and profit as TV advertising market conditions recover, while our Lifestyle Business segment is likewise experiencing increased sales and profit as our stores see increased customer
flows, as the strict constraints of COVID-19 are gradually being
eased. We recognize, however, that there are significant risks interms of business execution due to the impact of COVID-19.

89

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Dialogue Session between Chairman and Outside Board Directors

Sound and Active Discussions Facilitate Speedy Reforms to Achieve the VISION 2030
and the MTMP 2023
Shinji Takeda, Chairman & Board Director of TBS HOLDINGS, INC. exchanged opinions with outside directors Mr. Kashiwaki, Mr. Yagi, and Mr. Haruta about their views on the progress of the TBS Group VISION
2030 and the MTMP 2023 in the past year since their release, as well as changes in TBS Group and TBS
Board of Directors.

en discussions and make more interesting developments.
Haruta: I feel that our Board of Directors has a sound atmosphere
where members can express their opinions comfortably. The great
success in 2021 was that we were able to have discussions todetermine the company’s general direction, such as a long-term
perspective on VISION 2030, MTMP 2023, and countermeasuresagainst COVID-19.
The challenge for this year is how much we can deepen those
discussions. I am particularly concerned about how everyone in thecompany is thinking about stock prices → p.103 . There should bea discussion about how to improve corporate value.
Yagi: I think that continuously asking, “How does this initiative
relate to the VISION?” has helped keep the goals in mind more
vividly. Once you have declared the VISION 2030 and the MTMP

Independent Outside Director

Independent Outside Director

Independent Outside Director

Hitoshi Kashiwaki

Makoto Haruta

Yosuke Yagi

■ Review of the past year

Chairman & Board Director,
TBS HOLDINGS, INC.

Shinji Takeda

Determine the company’s general direction to
discuss how to increase corporate value

the internal situation from an objective perspective and point out
issues. Something I learned through discussions on the VISION
2030 and the MTMP 2023 is that everyone in the company is very

Takeda: One year has passed since the VISION 2030 and the MediumTerm Management Plan 2023 (hereinafter the “MTMP 2023”)→ p.14, p.15 were created. What is your opinion of the Board of
Directors over the past year?
Kashiwaki: I believe that our role as outside directors is to review

diligently monitoring the progress of the plans. They take to heart
our suggestions and opinions about the situation.
The next step will be to stimulate board discussions. Especiallywhen you start something completely new like this VISION, ourviews from completely different perspectives will help you deep-2023, I expect you to take action to achieve them. I have seen theinternal governance and operations becoming more integrated
thanks to our comments from external perspectives.
Takeda: We are accelerating various activities to implement our
EDGE strategy, including the establishment of a new company andthe construction of a new studio. → p.18 The long-running stage
production Harry Potter and the Cursed Child will start as a partof Akasaka Entertainment City Plan. → p.19 Identifying and publishing our materialities → p.21 is also a part of our EDGE strategy.
During the past year, we have been working as the entire group
together to materialize our strategy and plan we set last year. We
are still on our way.

90

Dialogue Session Between Chairman and Outside Board Directors■ What should be done for business innovation

Listen to opinions from outside the company to
try out opportunities for innovation and promptly
achieve good results
Takeda: Questions from you, the three outside directors, havestrongly stimulated us to start various discussions centered on the
VISION 2030.
Kashiwaki: To further deepen the discussions, I think it would be OK
if internal directors could get involved more in departments otherthan their own. They may assume that they should refrain fromspeaking out about other departments. However, don’t you think
there should be an atmosphere in which anyone can speak freely?
Yagi: To that end, I think outside directors can sometimes be an“opponent party” to those in the company. Conflicts of opinion
may generate new ideas. There is no need to fight, but I would
rather enjoy discussions without hesitation.
When you make an innovation, it is important to set a target
date by which you will have made the change.

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Kashiwaki: There have been some good changes in terms ofsetting goals. In recent years, TBS has become more conscious ofnumerical aspects of management. As we, outside directors, havebeen saying to you, “It is better to provide such-and-such numerical data,” your executives’ mindsets have changed significantly.
The next step is to utilize such numbers as information that
benefits the shareholders rather than keep them for managerialuse. That will benefit the company as well. By communicating improvements, you will have a more meaningful conversation withinvestors.
In addition, while the declaration of the VISION and theMedium-Term Management Plan is a significant step forward, itwould be good to see you more proactively trying out something
you have never done before. If you don’t succeed, you will be
criticized and have to pay for it. Nevertheless, you can look for
another way by analyzing the process and building on it. The
shareholders must also have high expectations for the company.
Haruta: When you say, “We will raise the stock price,” “This is
the company we are aiming for,” you must be prepared to makeit happen. I think you have to promote yourself more. In otherwords, you lack a culture of making a confident statement.
Yagi: It is not easy to be number one, but I would like to see you
more willing to take on challenges.
Takeda: I believe that the current stock price shows investors’
assumption that the broadcasting industry will not change evenamidst rapid changes. What should we do to make the stock pricereflect our VISION 2030’s determination to be one step ahead? Wemust develop the ability to break through this problem. I believe
we must work to help not only the current management team, but

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Dataalso help the next generation of TBS executives to gain that ability.
So far we have been talking about our challenges. Now, what
are TBS’s strengths that we should keep developing to increase
corporate value?
Yagi: Psychological safety is crucial to foster a spirit for a challenge,
and TBS has a sincere attitude toward solving any problem. I believe this assures a sense of safety with which anyone can speak
frankly.
Haruta: Management’s strong will for change. That is what employees keenly observe. They recognize that the company is trying tochange. This is what differentiates you from other companies. TBS
has such a top management, internal directors, and outside directors
like us, working together to create a medium-term plan. I see thatyour willingness to take on challenges has been increasing gradually.
In this context, however, you must deliver good results. Good
results inspire you with confidence. You should share them within
the company, and publish them outside the company. Observing
your current situation, I still feel as if you are satisfied with yourslow steps. An organization must not accept that innovations taketime. You must change that mindset, and your organization will
become sounder.

91

Dialogue Session Between Chairman and Outside Board Directors

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

It is also important for employees themselves to consciously
break away from the conventional way of working. I expect thateach employee’s further growth will create a culture to produce
good content on a sustainable basis.
Yagi: Talking about diversity, it is essential to consider it not as apart of CSR, but of management strategy. It is important that thecompany be invigorated by the diversity of ideas. I believe thatthe more diverse a company is, the sounder it is. It means that thecompany listens to different opinions. To implement that strategy,■ Human capital strategy

Maximize TBS value by utilizing new forces andoutside forces
Takeda: In recent years, we have been focusing on recruiting
qualified people for career positions → p.37 . As outside directors,
how do you view our human capital strategy?
Kashiwaki: TBS’s strength lies in its ability to create good thingsand carry through what it has set out to do. These are madepossible by its human resources. Another advantage is its cultureof openness and no secrecy. Such ambiance allows employees toshow their talent easily. Indeed, I also appreciate that you havebeen promoting women and young people.
At the same time, I would like every employee to envision
their own careers beyond the boundary of TBS. If they are only
concerned about success within the TBS framework, they will notchange the way of working they have been used to. You need toincrease the number of employees who even plan to “take advantage of TBS” for their career advancement. To do so, you must
utilize new and outside forces.

you have to set numerical targets.
I find that your in-house university, TBS Group University(TGU) → p.37 is a very good initiative. I sense your strong will to
break down barriers within the company, such as “I am from thenews department,” and “I am from the sales department,” and to
train employees to think about the growth of TBS through TGU.
Kashiwaki: TBS has been getting an increasing number of opportunities to take on challenges. For such opportunities, I believe
it will be better to use young people more without minding theexisting hierarchy. If there are more opportunities to use young
employees, others will be motivated to work harder as well.
Takeda: As I mentioned before, we have been focusing on recruiting qualified people for career positions. In fiscal 2021 we hired
more than 20 mid-careers, compared to about 30 newly graduates.
Yagi: Understanding the essential significance of mid-career recruitment is vital. The quintessence of mid-career recruitment is
how to instill the competition principle into an organization thathas been developing “harmony” over many years, by adding people from the outside.

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Nevertheless, competition must not demotivate those notselected. To avoid that, employees need to understand they arein a completely different system from the previous one. And toencourage employees to engage in friendly competition, thecompany should develop the ability to be number one. This will
increase the number of employees who say, “I joined this company to be number one.” This will lead to a virtuous cycle.
Takeda: I am proud to say that over the past year, we have beentransforming ourselves and accelerating new businesses. On theother hand, you reminded me today that we must not forget we
still have many areas to improve in, such as the spirit for a challenge, prompt response, and a culture of friendly competition.
We look forward to continuing to receive stimulating questions
and advice from all three of you.
Thank you very much for today’s talk.

92

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

Analysis of Financial Position and Business Results (MD&A)[Business Results]
Performance Highlights

materials, financial capital market fluctuations, and supply-side
constraints. It is also incumbent upon us to pay close attention to
the impact of COVID-19.
The TV advertising market is recovering in many business sectors, with spot advertising expenditures in the Kanto Region up
19% year on year.
Given these conditions, consolidated net sales Figure 1 for the
TBS Group in FY2021 stood at ¥358.269 billion, an increase of
10.0% year on year, owing to a significant increase in time (program sponsorship) and spot advertising revenue.
Owing to such factors as program production costs, chiefly
the airing of the Tokyo Olympic and Paralympic Games, as well

The Japanese economy in FY2021 showed some signs of recovery
as the harsh conditions resulting from the spread of COVID-19
were eased. Turning to future prospects, as efforts to stop the
spread of COVID-19 are redoubled and socioeconomic activity
returns to normal, we see the results of our various initiatives aswell as improvement in the global economy, which give reason for
optimism that the economic climate is recovering. Against thesefactors, given the uncertainty arising chiefly from the situationin Ukraine, it will be necessary to closely monitor the risk of adownturn that may be caused by such factors as rising costs of raw

Figure 1

Figure 2

Net sales

Operating profit/Ratio of operating profit
to net sales
Operating profit(Billions of yen)

（%）

380

360

361.9

366.3

(Billions of yen)

30

358.2

356.7

20

5.7

5.2

5.1

18.8

18.5

340

13.1
325.6

10

320

0

3.7

20.3
3.3
10.8

as increased advertising agency commissions, operating expenses (sum of cost of sales and selling, general and administrative
expenses) stood at ¥337.923 billion, an increase of 7.3% year onyear.
As a result, operating profit Figure 2 reached ¥20.346 billion(up 87.7% year on year). Ordinary income totaled ¥30.707 billion(up 59.7% year on year), mainly due to a decrease of dividends
received, and net income attributable to owners of parent Figure 3
totaled ¥32.008 billion (up 14.0% year on year), mainly due to again on sales of investment securities as extraordinary income.

Figure 3

Ratio
（％）

6.0

Net income attributable to owners of parent(Billions of yen)

2019/32020/32021/32022/310.0

0

2018/3

2019/32020/32021/32.0

2022/3

8.5

32
4.0

24

0.0

2018/3

10.0

8.0
6.0

4.7

16

0

8.6

8.9

6.9

17.1

Ratio
（％）

40

8

2018/3

Net income attributable to owners of parent/
Ratio of net income to net sales

25.2

30.1

28.0

32.0

4.0
2.0

2019/32020/32021/32022/30.0

94Analysis of Financial Position and Business Results (MD&A)[Performance by Segment]■ Media Content Business Segment
The Media Content Business segment reported net sales Figure 4
of ¥281.414 billion (up 10.9% year on year) and operating profitof ¥10.933 billion (up 279.5% year on year) in FY2021.
Net sales in the Television division of TBS TELEVISION, INC.
for FY2021 increased ¥24.469 billion to ¥192.616 billion (up14.6% year on year). Of these, time (program sponsorship) advertising revenue totaled ¥81.831 billion (up 4.3% year on year),spot advertising revenue totaled ¥84.559 billion (up 21.0% year
on year), and content sales revenue, which advertising revenue
earned through domestic broadcast syndication and free video
streaming, totaled ¥20.981 billion (up 32.2% year on year). Timeadvertising revenue increased due to such positive influences aslarge one-off events such as the Tokyo Olympic and Paralympic
Games and New Year’s sales, as well as activities such as the “Weekto Make the Earth Smile” campaign for SDGs. Spot advertising
revenue improved significantly, due largely to a 19.0% year-onyear increase in Kanto Region spot advertising expenditures on
the part of advertisers. The five-station share stood at 20.1%, up
0.4 point year on year, with particular growth in Q4 of 0.7 point
approaching year’s end. Despite reduced demand in the year-ago
period from domestic program sales activity on the part of people
staying at home, content sales revenue was up significantly owing
to satisfactory performance in free and subscription streaming,
primarily of dramas.
Net sales in Live Entertainment and Media Business division of
TBS TELEVISION, INC. for FY2021 increased ¥3.378 billion to ¥21.82
billion (up 18.3% year on year).

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

In entertainment, various productions premiered, including“Standing Ovation,” “Stars On Ice: Japan Tour 2021,” and thestage show “Touken Ranbu the Stage.” These, together with thespecial Van Gogh exhibit “Collecting Van Gogh: Helene KröllerMüller’s Passion for Vincent’s Art,” generated increased revenues
through their respective successes. In the film business, “99.9Criminal Lawyer THE MOVIE” was a hit, generating increased
revenues. In anime, earnings from overseas sales of “The Quintessential Quintuplets” and “Platinum End” also contributed to increased revenues. Our overseas business declined, despite format
sales such as “SASUKE/Ninja Warrior” trending toward recovery.
While the CS segment of our media business was successful, chief-

Share of consolidated net sales by segment (FY2021)

Strategies for
Business

Value Creation Storyly through improved allocations, the transfer of control of thesubscription streaming business to the Television division resulted
in reduced revenues overall. Merchandising Center revenues were
down due to reduced demand by people staying at home in the
year-ago period.
Net sales for TBS RADIO, Inc. in FY2021 increased ¥250 million
to ¥8.743 billion (up 3.0% year on year) on continuing solid timeadvertising sales.
Time advertising sales at BS-TBS, INC. offset a shortfall in regular sales with one-off special event sales including the Olympics
and volleyball tournaments, resulting in increased revenues overall. Buoyed by home shopping sponsors, spot sales and shopping

Figure 4

Net sales/Operating profit by segment(Media Content Business)

Net sales to external customers

Real Estate andOther Business

15.8(Billions of yen)

4.4％

Operating profit(Billions of yen)

290

10.9

260

78.6％
Media Content
Business

281.4

250
0

12.5
10.0

270

LifestyleBusiness

61.0(Billions of yen)

280

17.0％

Performance andCorporate Data

Sustainability

7.5
281.4

270.2
2.4

2.8
253.7

2020/32021/35.0
2.52022/3095

Analysis of Financial Position and Business Results (MD&A)

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

showed significant growth of ¥1.049 billion to ¥16.424 billion (up6.8% year on year).
TBS GLOWDIA, Inc. showed a revenue shortfall of ¥4.917 billion to ¥27.539 billion (down 15.1% year on year), owing chiefly
to the shopping division experiencing reduced demand by people
staying at home and reduced demand for DVDs that had been hits
in the previous year.
NICHION, INC. showed a shortfall of ¥1.651 billion to ¥8.384
billion (down 16.5% year on year) owing to falling revenues on
Western music.
TC Entertainment Incorporated showed a shortfall of ¥178

Turning to the StylingLife Group, while PLAZASTYLECOMPANY, the core general merchandise retail sales business of
this group, was compelled either to operate under reduced business hours or close stores entirely due to the government’s state of
emergency declaration, the state of emergency was lifted in October, resulting in increased customer traffic, which combined withsolid sales of seasonal gifts to deliver growth in both revenues andprofits.
Following the trend of increased demand by people staying
home, LightUp Shopping Club Inc., our mail-order business, added
more customers and increased customer unit prices, resulting inmillion to ¥8.182 billion (down 2.1% year on year), owing to reduced demand for DVDs that had been hits in the previous year.
Turning to expenses, these increased due in part to higher production costs owing to renewed production of regular programming as well as sporting specials, as well as restarting of events,
concerts and stage performances by the TBS TELEVISION, INC. business division. Advertising agency commissions have also increased
as the revenues of the Television division of TBS TELEVISION, INC.
have increased.
As a result, operating profit in the segment increased ¥8.052
billion to ¥10.933 billion (up 279.5% year on year).

both increased revenues and profits.
Turning to our beauty and wellness business, while BCL COMPANY,
which develops, manufactures, and markets cosmetics, is strug-

Figure 5

Net sales/Operating profit by segment(Lifestyle Business)

Net sales to external customers(Billions of yen)

75

2.7
2.3

70

■ Lifestyle Business Segment

65

The Lifestyle Business segment reported net sales Figure 5 of
¥61.023 billion (up 9.0% year on year) and operating profit of¥2.362 billion (up 740.5% year on year) in FY2021.

60

70.0

55
0

2020/3

55.9
0.2

61.0

2021/32022/3

Performance andCorporate Data

Sustainability

gling in the global market, its domestic Japanese business has
been on a recovery trend and steadily improved its performanceboth in self-service and BCL Company retail stores since the stateof emergency was lifted. Also, CP Cosmetics Inc. has maintainedsolid support in home care sets and supplements. In this way, thisbusiness has produced both increased revenues and profits overall.

■ Real Estate and Other Business Segment
The Real Estate and Other Business segment reported net sales
Figure 6 of ¥15.831 billion (down 0.6% year on year), and operating
profit of ¥7.062 billion (down 8.0% year on year) in FY2021.
Revenues remained solid even while declining. In terms of
expenses, profits declined owing to increased repair costs.

Figure 6

Net sales/Operating profit by segment(Real Estate and Other Business)

Net sales to external customers

Operating profit(Billions of yen)

Strategies for
Business

Value Creation Story(Billions of yen)

3.0

17.0

2.4

16.5

1.8

16.0

1.2

15.5

0.6

15.0

0

0

Operating profit(Billions of yen)

7.9

8.0

7.6

7.6

7.0

6.8

16.5
15.9

2020/37.2

2021/315.8

2022/36.4
096

Message from the
President

Analysis of Financial Position and Business Results (MD&A)

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability

Performance andCorporate Data

[Financial Position]

include income taxes payable having declined by ¥11.759 billion,[Cash Flows]

Total assets Figure 7 at the end of FY2021 stood at ¥1,201.632
billion, an increase of ¥101.408 billion compared to the end of
FY2020. Cash and deposits declined ¥17.354 billion, owing chiefly
to corporate tax and other payments, as well as dividends andacquisitions of property, plant and equipment. Conversely, notes
receivable, accounts receivable, and contract assets rose ¥23.680
billion compared to notes receivable and accounts receivable atthe end of FY2020, and investment securities rose ¥80.511 billion
owing primarily to unrealized gains on shares held, also year on

while deferred tax liabilities increased by ¥25.335 billion due toan increase in the fair value of shares held, and accounts payable
increased by ¥1.238 billion.
Total net assets stood at ¥883.002 billion, an increase of¥88.117 billion compared to the end of FY2020. Factors were thatretained earnings increased by ¥29.095 billion because of therecording of net income attributable to owners of parent andpayment of dividends as well as valuation difference on availablefor-sale securities increased by ¥57.875 billion.
As a result, the equity ratio Figure 8 reached 72.3%, and net
assets per share equaled ¥5,087.12.

Cash and cash equivalents at the end of FY2021 totaled ¥98.707
billion, a decrease of ¥17.354 billion compared to the end of
FY2020. Each cash flow and their factors were as follows:

year.
Total liabilities stood at ¥318.629 billion, an increase of¥13.291 billion compared to the end of FY2020. Factors involved

Figure 7

Figure 8

Total assets/Net assets
Total assets

1,100.2

1,000
800
600

821.7
600.9

798.4
601.2

783.0

794.8

1,201.6

883.0

（%）
8.0
6.0

591.9

4.0

400

2.0

200
0

0.0
2018/3

2019/32020/3

Net cash used in operating activities Figure 9 stood at ¥2.853 billion(compared to ¥22.713 billion provided in the previous fiscal year).
Positive factors included income before income taxes of ¥47.796
billion, depreciation of ¥13.348 billion, and interest and dividend
income of ¥11.181 billion, while negative factors included gain on
sales of investment securities of ¥18.818 billion and income taxes
paid of ¥30.797 billion.

Figure 9

Equity ratio

Cash flows from each activity
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Total net assets(Billions of yen)

1,200

■ Cash flows from operating activities

2021/32022/310.0（％）(Billions of yen)

75

40
30

73.9

74

20

73.2

73

10
72.3

72
71
0

71.2
2018/32020/32021/3

-10

-14.0

-20

-7.7

-30

71.0
2019/3

0

35.5

-50

-21.5

5.9

16.8

21.4

22.7

-14.2

-8.6

-2.8
-8.1
-8.1

-24.3

-40
2022/335.2

2018/3

2019/32020/32021/32022/397

Analysis of Financial Position and Business Results (MD&A)

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy■ Cash flows from investing activities[Capital Expenditures]

Net cash used in investing activities Figure 9 stood at ¥8.154 billion

Capital expenditures Figure 10 for FY2021 which include intangible(compared to ¥8.618 billion used in the previous fiscal year). Major factors included proceeds from sales of investment securitiesof ¥20.277 billion, purchase of property, plant and equipment of¥25.884 billion, and purchase of shares in subsidiaries and associates of ¥639 million.

assets but exclude asset retirement obligations, totaled ¥27.716
billion. Capital expenditures by reportable segment were as follows:■ Cash flows from financing activities

Net cash used in financing activities Figure 9 stood at ¥8.164 billion(compared to ¥16.898 billion provided in the previous fiscal year).
Major factors included repayment of long-term loans payable of¥1.6 billion, purchase of treasury shares of ¥908 million, and cash
dividends paid of ¥5.125 billion.

[Financing]
Cash flows from operating activities for FY2021 declined ¥25.566
billion year on year. While revenues of ¥20.277 billion were posted from sales of investment securities, cash on hand declined¥17.354 billion chiefly due to acquisitions of property, plant andequipment in the amount of ¥25.884 billion. Short-term capital
expenditures and strategic investments are now expected to befinanced by cash on hand and full-year operating cash flows.

■ Media Content Business
Capital expenditures totaled ¥6.153 billion.
Major items included ¥3.2 billion in broadcasting infrastructure for TBS Broadcast Center, including studio equipment for TBS
TELEVISION, INC. and updating of other general facilities.
There was no disposal or sale of important facilities in FY2021.

Figure 10

Performance andCorporate Data

Sustainability

Capital expenditures by segment
Media Content Business
Lifestyle Business（％）
Real Estate and Other Business（億円）(Billions of yen)

40

30
32.9

20

21.0

10.9
10

■ Lifestyle Business
Capital expenditures totaled ¥503 million.
Major items included updating of general facilities.
There was no disposal or sale of important facilities in FY2021.

Strategies for
Business

Value Creation Story

0

1.0

0.4

7.9

6.4

2020/32021/36.1

0.5

2022/3■ Real Estate and Other Business
Capital expenditures totaled ¥21.059 billion.
Major items include ¥16.132 billion related to TBS’s Akasaka
Entertainment City Plan, and updating of other general facilities.
There was no disposal or sale of important facilities in FY2021.

98Analysis of Financial Position and Business Results (MD&A)

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Sustainability[Research & Development]■ Lifestyle Business■ Real Estate and Other Business

The TBS Group devotes its lifework to providing high-quality anddiverse services to the people over the public airwaves. In addition, we are researching and developing new program production, transmission, and broadcasting technologies to contribute to
the practical use of next-generation digital broadcasting.
The R&D activities by reportable segment were as follows:

We endeavor to research ideal skincare for modern women, plan
new product concepts from the perspective of consumer needs,
marketability, and differentiation from competitors, and develop
unique products based on the planned product concepts. As forbasic research, we are primarily engaged in the development of
new raw materials. We also conduct joint research with external
research organizations to ensure the effective application of advanced research.
R&D expenses totaled ¥156 million.

There was no specific research and development activity.

■ Media Content Business
Key research and development activities include 1) developmentof XR stages using virtual and augmented reality technologies
and 360-degree videos, 2) development of remote production
systems using network connections, and 3) development of news
streaming systems using image-recognition and speech-recognition
AI technologies. Item number 1) in particular, used at the Beijing
Olympics, for example, wherein travel onsite by athletes and staff
would be restricted due to the COVID-19 pandemic, succeeded in
making it seem as though participants were actually onsite fromstages in Tokyo. Plans call for extensively utilizing these technologies in future productions.
R&D expenses totaled ¥22 million.

Performance andCorporate Data

R&D expenses by segment
Media Content Business（百万円）

Lifestyle Business（％）(Millions of yen)

250
200
150

153
141

100
50
0

74
2020/3432021/3156

222022/399

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Performance andCorporate Data

Sustainability

Financial Data for the Past 10 Years

Millions of yen
2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/3Fiscal Year:Net sales

352,351354,338

347,817

348,539

355,363

361,954366,353

356,796

325,682358,269

Gross profit

107,164

108,839

106,665

107,072

113,296

113,750

115,728

107,008

95,418114,818

Selling, general and administrative expenses

90,975

93,14290,93689,893

93,417

94,94997,156

93,90484,576

94,472

Operating profit

16,18815,696

15,72817,17919,87818,80018,572

13,103

10,841

20,346

Ordinary income

17,671

18,096

18,91522,67826,207

26,923

28,835

21,274

19,23330,707

Net income attributable to owners of parent

9,173

9,644

12,811

14,497

16,136

17,182

25,20530,17428,07232,008Cash flows from operating activities

28,15623,03827,85132,33736,48535,53635,215

21,40622,713(2,853)

Cash flows from investing activities(13,649)(11,326)(2,326)(8,956)(10,078)(14,028)(21,588)

5,962(8,618)(8,154)

Cash flows from financing activities(25,475)(23,567)(25,242)(5,326)(36,718)(7,730)(24,387)(14,202)

16,898(8,164)

Free cash flows

14,507

11,712

25,52523,381

26,40721,508

13,62727,36814,095(11,007)

At year-end:
Total assets

559,626

579,039653,732

649,970707,063821,737

798,481783,024

1,100,223

1,201,632

Current assets

139,130130,262

131,127

149,478

145,479

155,660

144,192

158,800

190,053

198,692

Cash and cash equivalents at end of period

68,031

56,312

56,72874,734

67,391

81,12972,03385,059116,061

98,707

Non-current assets

420,496448,777

522,604

500,492

561,583

666,076

654,289624,223

910,170

1,002,939

Liabilities

215,152

193,068

197,613

191,762

189,633

220,786

197,189

191,093

305,338

318,629

Current liabilities

96,09083,117

63,072

95,27877,231

93,38280,09981,021

86,17675,592

Non-current liabilities

119,062

109,951

134,541

96,483

112,402

127,403

117,090

110,072

219,162

243,037

Net assets

344,473

385,971456,118

458,208

517,430

600,950

601,291

591,931794,884

883,002

Key Performance Indicators (%)
Net sales growth rate

1.7

0.6

(1.8)

0.2

2.0

1.9

1.2

(2.6)

(8.7)

10.0

Operating profit growth rate

33.1

(3.0)

0.2

9.2

15.7

(5.4)

(1.2)

(29.4)(17.3)

87.7

Ratio of operating profit to net sales

4.6

4.4

4.5

4.9

5.6

5.2

5.1

3.7

3.3

5.7

Net income attributable to owners of parent

2.6

2.7

3.7

4.2

4.5

4.7

6.9

8.5

8.6

8.9

ROE

2.9

2.8

3.2

3.3

3.4

3.2

4.3

5.2

4.1

3.9

ROA

3.2

3.2

3.1

3.5

3.9

3.5

3.6

2.7

2.0

2.7

Equity ratio

58.7

63.3

66.7

68.3

71.1

71.2

73.2

73.9

71.0

72.3
0.3

Total assets turnover

0.6

0.6

0.5

0.5

0.5

0.5

0.5

0.5

0.4

PER

23.4

19.5

19.2

21.0

21.5

22.9

14.0

8.7

13.2

9.5

Payout ratio

29.9

31.0

27.8

30.1

30.3

30.5

22.9

17.2

18.3

19.7

Per Share Data (yen)Annual dividend per share

18.00

19.00

22.00

25.00

28.00

30.00

33.00

30.00

30.00

37.00

EPS

60.27

61.22

79.12

83.12

92.46

98.38

144.31173.28164.32

187.35

BPS

2,158.00

2,263.65

2,689.56

2,545.60

2,878.29

3,349.52

3,347.03

3,356.30

4,575.61

5,087.12100

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Value Creation Story

Strategies for
Business

Performance andCorporate Data

Sustainability

Non-Financial Data for the Past 10 Years

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/3

Number of employees (Year-end)

5,234

5,634

5,585

5,641

5,610

5,552

6,090

6,155

6,134

6,454

CO2 emissions (tons)*

26,95226,01925,336

24,52524,12323,235

21,916

20,054

18,267

18,515

CO2 reduction (tons)*

4,844

5,777

6,460

7,271

7,673

8,561

9,880

11,742

13,52913,281CO2 reduction rate (%)*

15.2

18.2

20.3

22.9

24.1

26.9

31.1

36.9

42.5

41.8

Recycling rate (%)*

73.7

72.7

72.2

67.5

67.8

70.7

68.4

71.3

72.3

69.2

100,392

103,508

98,972

97,32280,25873,55873,84074,75953,85574,549109,322

115,897

102,169

106,967

102,376

96,064

99,032

96,25475,526

94,668

ー

ー

ー

ー

ー

ー

7.5

18.2

19.1

Tap water usage (m3)*3Groundwater usage (m )*Percentage of male employees taking childcare leave (%)**
Percentage of female employees taking childcare leave (%)**

ー

ー

ー

ー

ー

ー

100.0

100.0

100.0

Ratio of female managers (%)***

9.7

10.2

10.1

10.4

11.2

11.4

12.5

13.2

13.5

14.3

2.1

2.1

2.0

2.2

2.5

3.2

3.2

Ratio of persons with disabilities employed (%)****Only in TBS Broadcast Center (Broadcast Center + Cultural Facilities Building)** TBS HOLDINGS, INC. + TBS TELEVISION, INC.
*** As of February 1, TBS TELEVISION, INC.

101

Message from the
President

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
Business

Value Creation Story

Sustainability

Performance andCorporate Data

Company and Investor Information

Company Profile (as of March 31, 2022)
Name

TBS HOLDINGS, INC.

Date EstablishedMay 1951

Head Office

5-3-6 Akasaka, Minato-ku, Tokyo 107-8006
Japan(+81) 3-3746-1111 (main)

Number of
Employees(consolidated)

6,454

Total Number of
Shares Issued

171,591,065 shares(including treasury stock)

Minimum

100 Shares

Number of
Shareholders

13,707

Listing

Prime Market (formerly First Section) of Tokyo
Stock Exchange

Closing Date

March 31

Ordinary General
Meeting of
Shareholders

June

Administratorof Shareholders’Registry

Mitsubishi UFJ Trust and Banking Corporation

Capital¥54,986,892,896

Securities Code

9401

URL

https://www.tbsholdings.co.jp/en/

Accounting Auditor

KPMG AZSA LLC

External Assessments
AwardsPrograms and Services

Name of Award

Sunday Theater, “NAOKI HANZAWA”

26th AMD Award, AMD Chairman Award

Mojipa (Real-time subtitle broadcasting using voice recognition AI)

Content Technology Award, Institute of Image Information and Television Engineers

Senrigan (Video Preview System from Outside)

Progress and Development Award, Institute of Image Information and Television Engineers

OTO ATTRACTION

Content Asia Awards: Best Asian Original Game Show

TBS BELL (Remote Appearance System)

Motion Picture and Television Engineering Society of Japan, Best Technology Development Award

Mojipa and TBS BELL

The Japan Commercial Broadcasters Association, Technology Category Grand Prix

“NAOKI HANZAWA”

Busan’s Asia Content Awards, Judges’ Special Award

Designer: Ryotaro Kushioka

48th Kisaku Ito Awards, Newcomer Award of the Year

Sounds of “the 62nd Japan Record Awards”

27th Japan Professional Recording Awards, Broadcasting Category Two-Channel Stereo Award

Reporter: Hiroshi Sukagawa

Vaughn-Ueda Memorial Reporters’ Awards“Dearest”

2021 Digital Content of the Year/27th AMD Award, First Prize, Minister of Internal Affairs andCommunications Prize“Dearest”

2021 TVer Awards, Drama First Prize

Producer: Aki Isoyama

2021 Artistic Nominations, Minister of Education, Culture, Sports, Science and Technology Prize

BS-TBS “Style2030” (A TBS SPARKLE, Inc. Production)

Albert Certification

3-D Illumilink

Technology Promotion Award, Content Technology Award, Institute of Image Information andTelevision Engineers

3-D Illumilink (CG lighting and decorative illumination simulation system)

Technology Promotion Award, Content Technology Award, Institute of Image Information andTelevision Engineers“Dearest”

TV Division Committee, 59th Galaxy Awards for programs highly recommended“News Special”: Tokyo Olympics Investigative Reporting Campaign

Press Activity Division Committee, 59th Galaxy Awards for outstanding programs

Kiyoshi Nakagawa (Lighting director for “The 63rd Japan Record Awards”)

Japan Association of Lighting Engineers and Designers Awards, First Prize and Minister of Education,
Culture, Sports, Science and Technology Prize

Mojiko AI-using text generation editor

Japan Digital Transformation Promotion Association Awards, Grand Prix

102

Message from the
President

Company and Investor Information

Long-Term Strategy andMedium-Term Management Plan

Message from the Head ofFinance Strategy

Strategies for
Business

Value Creation Story

Performance andCorporate Data

Sustainability

Stock Information
Major Shareholders (March 31, 2022)

Trends in Share Price (yen)Number of Shares
Held (thousand)

Percentage (%)*

The Master Trust Bank of Japan, Ltd.

27,616

16.17

MBS Media Holdings, Inc.

8,848

5.18

Custody Bank of Japan, Ltd.

6,277

3.67

Mitsui Fudosan Co., Ltd.

5,713

3.34

NTT DOCOMO, INC.

5,713

3.34

Nippon Life Insurance Company

5,006

2.93

Shareholder Name

3,000
3,000
2,500
2,500
2,000
2,000
1,500
1,500
1,000
1,000

(Standing agent: The Master Trust Bank of Japan, Ltd.)STATE STREET BANK AND TRUST COMPANY 505001(Standing agent: Mizuho Bank, Ltd.)

4,435

2.59

500
500

00

2017
2017

2018
2018

2017

2019
2019

2018

2020
2020

2019

2021
2021

2020

（年度）
(FY)

2021

Total
shareholder
3,000
return (%)

115.0

105.1

80.3

115.4

97.9

2,500
High
(yen)

2,920

2,573

2,183

2,470

2,255

Low
(yen)
2,000

1,825

1,612

1,232

1,390

1,590

1,500

MITSUI & CO., LTD. (Standing agent: Custody Bank of Japan, Ltd.)

4,288

2.51

BIC CAMERA INC.

4,190

2.45

Kodansha Ltd.

3,771

2.20

*Percentage of shares held to total number of shares issued (excluding treasury stock)

1,000

Percentage of500
Shares
Held
0

2016

● Individuals/Others

5.54%
2017
● Foreign companies,etc.

16.45%● Other companies

49.88%

2018

Number of
Shareholders

13,7072019● Domestic financial
2020
（年度）
institutions

26.37%● Financial instruments
business operators

1.75%

103

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