Overview of the TBS Group VISION 2030
and Medium-Term Management Plan 2023
(1) Basic Management Policies
TBS Holdings, Inc. and its consolidated subsidiaries (the “TBS Group”) renewed theirshared philosophy as a corporate group as follows in the spring of 2020.
“The TBS Group aims to deliver timeless content and services to the world, respecting
diverse values and striving to make a positive contribution to society”
To embody this philosophy, the TBS Group also established the following brand promise.
“From each moment, a better tomorrow”
The TBS Group hopes to meet the expectations of shareholders, aiming to increase thevalue of Group companies with the above philosophy and brand promise as indicators of
its management activities across the board.

(2) Target Management Indexes
The TBS Group considers revenue, a source and an indicator of corporate value, andoperating income, an indicator of efficient profit generation through the Group's mainbusinesses, as important management indexes. Consolidated revenue for the fiscal year
under review amounted to ¥325,682 million, down 8.7% from the previous fiscal year.
Consolidated operating income was ¥10,841 million, down 17.3% year on year.

(3) Business Environment, Issues the TBS Group Should Address, Group Management
Strategies, etc.
The TBS Group is aware that the sustained enhancement of the value of Group
companies as enterprises sought in society is the top priority issue for itself underconstantly changing business conditions that make prediction difficult. The TBS Group
produced the TBS Group VISION 2030, which embodies the Group's vision of itself inthe year 2030, in a bid to address this issue by backcasting from future goals from a longterm perspective, instead of accumulating efforts in traditional ways. As the Phase 1 forachieving those targets, the TBS Group developed the TBS Group Medium-Term
Management Plan 2023 covering the period from FY2021 to FY2023.

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Overview of TBS Group VISION 2030
The key concept for the TBS Group VISION 2030 is as follows:“Spreading content boundlessly beyond the framework of broadcasting, creating
memorable experiences”
The capacity to create content is the greatest asset of the TBS Group. Responding topeople’s expectations better than ever before, the TBS Group will create excellent content
that enriches minds and lives, and will deliver this content beyond the framework ofbroadcasting. Defining all things that move people’s hearts as content, the TBS Groupaims to become a group of content providers that maximize the value of all those things.
Specifically, the TBS Group will bolster its creative capabilities by developing original
intellectual property (IP). Taking a step further, the TBS Group will drive forward
initiatives dubbed EDGE as its strategy for spreading created content boundlessly.

EDGE: Expand Digital Global Experience
The TBS Group will develop digital content by stepping up program distribution (Digital),pursue further breakthroughs in overseas markets (Global), and concentrate its
resources on expanding the business of experiencing live entertainment and lifestyles(Experience).

Changes in the Revenue Ratio from 2020 to 2030

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TBS Group VISION 2030 states that the TBS Group seeks to achieve consolidated
growth by expanding businesses in growth areas and businesses other than broadcasting
to 60% of consolidated revenue based on the EDGE strategy for spreading createdcontent.
Moreover, the TBS Group will pursue a number of measures to offer wonderful moments
to people on Earth (E), in society (S) and at shared workplaces as a group (G) ofresponsible companies, including media organizations with public and social missions,which are basing management on factors known as the environment, social andgovernance (ESG) principal. Through content and with all stakeholders, the TBS Groupwill build a happy, sustainable society where diverse values are respected.

Overview of the TBS Group Medium-Term Management Plan 2023
The TBS Group Medium-Term Management Plan 2023 corresponds to Phase 1 of theperiod covered by the TBS Group VISION 2030 (FY2021 to FY2030). The TBS Group set
themes for this Medium-Term Management Plan focused on recovery and sowing. TheTBS Group will sow seeds for growth toward the goals set in the TBS Group VISION
2030 while achieving a recovery from the impact of COVID-19 and expanding revenues
based on growth strategies.

Dividing the TBS Group VISION 2030 period into three phases3

To begin with, the TBS Group will work on innovating broadcasting, a core business forthe Group, as an urgent issue in the period covered by the TBS Group Medium-Term
Management Plan 2023.
The TBS Group aims to maximize the scope of its reach while positioning the new FamilyCore demographic (male and female individuals age 4 years to 49) as a priority target
for winning next-generation viewers and rebuilding social value. Moreover, the TBS
Group will present, explain and propose media value by strengthening data coordination.

As growth strategies, the TBS Group will first bolster distribution and develop content
in the digital area to put into tangible form the EDGE strategy for distributing content,
as set out in the TBS Group VISION 2030. The TBS Group will expand the scope of news
reach and develop new digital content businesses while expanding revenues byincreasing the use of video distribution platforms every fiscal year.
Globally, the TBS Group will step up its efforts to rebuild distribution channels, expand
format businesses, produce internationally-focused content assuming distribution inmarkets worldwide, and develop other businesses with overseas partners in order toaccelerate progress in overseas markets through alliance expansion and M&A efforts.
Taking an additional step in the area of experience, the TBS Group will premiere thefirst long-run presentation in Asia of Harry Potter and the Cursed Child to expand its
live entertainment experience business. In addition, the TBS Group will advanceinitiatives, including original content development, multi-use application, and theestablishment of a TV studio with an immersive element for visitors in the Akasaka
Sacas area, to realize the Akasaka Entertainment City Plan.
In the lifestyle business, the TBS Group seeks a new growth track after achieving a
recovery in revenues from commercial facilities in the StylingLife Group and inboundoperations. The TBS Group will also work to develop experience and value businesses in
the intellectual training and education fields.
Based on the initiatives described above, the TBS Group set consolidated revenue of¥370,000 million, consolidated operating income of ¥18,500 million and the ratio ofoperating income to revenue of 5.0% as its quantitative targets for FY 2023 in the TBS
Group Medium-Term Management Plan 2023. Looking at the quantitative targets bysegment, the TBS Group aims to achieve revenue of ¥284,500 million and segment
income of ¥9,000 million in the Media & Content business segment by achieving abroadcasting income recovery, expanding the distribution business and leading the live4

entertainment business to recovery. The TBS Group seeks to realize revenue of ¥63,500
million and segment income of ¥2,200 million in the Lifestyle business segment byachieving a recovery in results for the StylingLife Group. The TBS Group sets out toaccomplish revenue of ¥16,000 million and segment income of ¥7,300 million in the Real
Estate & Other business segment.
The TBS Group aims to expand profits over the medium and long terms, and to improve
capital efficiency by decisively pursuing investments in growth worth ¥100,000 million
or more, using funds obtained from the sale of cross-held shares, net cash from operating
activities and the like.

Dividend PolicyAs its basic policy, TBS Holdings, Inc. (the “Company”) maintains shareholders’ equity
necessary and sufficient for continuously improving corporate and shareholder value
through business investments that contribute to future growth and the development ofcompetitive businesses, in addition to fulfilling a demanding public mission as anauthorized broadcast holding company.
Regarding dividends, the Company positions the return of profits to shareholders as animportant management issue. The Company adopts the basic position of continuingstable dividend payment with a consolidated payout ratio of 30% as its target. TheCompany also works to increase the return of profit to shareholders through measuresthat include the payment of special dividends, taking into consideration factors such as
improvements in results. The Company will determine the amount of dividends
separately, taking the effects of special factors into consideration, in cases including
those where significant fluctuations in profits result from such factors.
The Company will take action, including the acquisition of treasury shares, theirdisposal and retirement, flexibly in response to changes in business conditions as part ofits financial and other strategies to contribute to enhancing shareholder value.
The Company sets ¥30 per share as the minimum annual dividend for FY2021 to FY2023
covered by the TBS Group Medium-Term Management Plan 2023. However, theCompany may revise the minimum dividend in cases where it does not record a profit
attributable to owners of parent for two fiscal years in a row.

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