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We present the TBS Group Medium-Term Business Plan 2026.
Page2"TV" used to exclusively represent "Television" that is broadcast television for us for a longtime. However, since the launch of our "TBS Group VISION2030" in 2021, our unified efforts
to advance VISION2030 have profoundly transformed our perspective. Our content IPs are
now expanding beyond broadcasting into various businesses. Therefore, we have here
redefined "TV" for "Timeless Value" that means our goal is to provide content with timelessvalue and pursue this value in all business areas.
Page3We have introduced the basic policy of our new medium-term business plan. Aligned with
our VISION2030, we set the second phase up to 2026 as "Rise Up TBS Global Business", during
which we will focus on investing our management resources.
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Our core strength lies in our content production capabilities, which generate our valuable"content IPs". In addition to our core content, such as dramas, news, variety shows, andanimations, we have acquired content in the EDGE area over the past three years throughstrategic investments.
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We have expressed our content creation model as a funnel. This funnel divides the processof creating strong content IPs into three key stages: (1) Enhance our planning anddevelopment efforts to gather strong content ideas from all 8,000 TBS Group employees, (2)Strengthen our marketing and selection capabilities to identify and choose the mostpromising ideas, and (3) Refine and evolve the selected content IPs. We will set KPIs for eachof these three stages to ensure their effectiveness. Of course, we will not only develop content
IPs ourselves but also actively acquire IPs through investment.
Page6“Drive EDGE Forward Leveraging Creative Engine”. Creating strong content IPs will accelerate
the EDGE strategy. Content IPs with substantive value can expand into various business areas,including the EDGE area. This is what we mean by content IP creating Timeless Value, which
in turn will promote the business growth of the TBS Group. Of course, we will not onlystrengthen the EDGE area but also enhance our broadcasting business, fueled by ourunwavering commitment to be No. 1.
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Through these efforts, we aim to achieve sales of 450 billion yen and operating income of 24
billion yen in FY2026. To reach these targets, we need to manage our operations with an even

greater focus on capital efficiency. Therefore, we have set a KPI for capital efficiency for thefirst time. We aim to achieve ROIC of 5% or more by FY2030.
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To accomplish this, we have established a concept of capital allocation based on three key
points. First, we aim to steadily generate operating cash flow from the growth investments
made in the Medium-Term Plan 2023. Second, to improve the efficiency of working capital,
we will consider various financing methods, including debt. Third, we will accelerate theimprovement of the balance sheet by reducing cross-shareholdings and promoting
shareholder returns. These are our three main objectives.
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We outline the key points of our financial strategy. To accelerate our business growth, we willkeep growth investments. During the period of the Medium-Term Plan 2023, we made growthinvestments of 140 billion yen, including investments in U-NEXT, YARUKI Switch Group andTHE SEVEN. Under the Medium-Term Plan 2026, we plan to make growth investments of 160
billion yen, exceeding the previous medium-term plan period. In addition, we will carefully
monitor these investments to ensure they contribute to the Group's growth.
Page10We sold more than 80 billion yen of cross-shareholdings during the period of the MediumTerm Plan 2023. During the period of the Medium-Term Plan 2026, we plan to sell more than
90 billion yen, exceeding the previous period, and tackle the improvement of our balance
sheet.
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Next, we explain our shareholder returns. During the period of the Medium-Term Plan 2026,
we will return approximately 60 billion yen to shareholders. We aim to achieve dividend
payout ratio of 40%, while flexibly purchasing treasury stock considering the total payoutratio.
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Next, we will explain how to achieve the quantitative targets explained so far.
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We address our business challenges to maximize the strengths of the TBS Group in the faceof a rapidly changing external environment.
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Under the Medium-Term Plan 2026, we will further expand our business portfolio by creating
new businesses. We have divided our business phases into three: “Stable Revenue areas”“Growth Focus areas” and “Seeding areas”. We will thoroughly manage investments andbusiness growth in each of these areas. Also, we have defined three new business domains:

“New IP Strategy” “Technology” and “Branding Design” in the Seeding areas.
Page15For each business portfolio, we have set a target of increasing operating income from 15
billion yen in FY2023 to 24 billion yen in FY2026. Previously, KPIs were classified by segment,
but we plan to set and manage KPIs by business.
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Now let’s explore some key business strategies. In this medium-term business plan, ourprimary emphasis will be on expanding our global business. We have already developed theformat of the terrestrial program “SASUKE” as “NINJA WARRIOR” worldwide, and it has evenbeen adopted as an Olympic event. Moving forward, we will further enhance our content
distribution network to bring excitement and smiles to people around the world with all ourcontent.
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As a first step, we will establish strategic bases overseas. We will acquire a content IP sales
agency in North America, targeting the U.S. and European markets. Also, we will establish abase in South Korea to target the entire Asian region. In the future, we will not only build acontent distribution network but also jointly develop content IPs with partner companies ineach country.
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THE SEVEN, which have produced content for overseas OTT platforms, signed a strategic
partnership with NETFLIX and has begun production of high-end content. THE SEVEN aims
for sales of 10 billion yen by 2025. Additionally, we invested in MEGALIS, a VFX creator groupwhose world-class technology has been proven in Hollywood movies. This investment isintended to strengthen the TBS Group's VFX capabilities and elevate the quality of ourcontent to the world's top level.
Page19This section outlines our global business initiatives that are already taking in place. In addition
to rolling out content IPs overseas, we will actively acquire rights to utilize overseas partners'
IPs within Japan. TBS NEWS DIG has recently signed a strategic partnership with Bloomberg,
an American financial technology company. We will together launch a premium businessnews platform and accelerate our efforts to target global markets. Through these initiatives,
we are transforming ourselves into a “Global Content Company.”
Page20Regarding our anime business, this fiscal year, we have increased the number of terrestrial
anime time slots to three and also entered into a capital and business alliance with Shochiku
Co., Ltd. Through these initiatives, we will cover the entire “anime value chain”. We will createhigh-end theatrical productions and expand our business worldwide.
Page21This is a new addition to our intellectual training and education business. YARUKI Switch
Group joined our group in 2023. We will develop “unique video educational content” byleveraging our strengths in video production and the valuable video materials we haveaccumulated. Furthermore, we will accelerate our store openings in cooperation with the JNN
affiliates, as well as provide our unique educational methods to children overseas.
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As part of our new IP strategy, we have already begun to develop games under “TBS GAMES”
that originate from our TV show IP. We will also focus on the joint development of new gameswith major game companies. Additionally, we will create a reverse trend of games becoming
dramas, variety shows, and anime. For new IP measures, we are developing a new physicalgame format to follow “SASUKE”. In collaboration with a Korean company, we have also
formed a Japan-Korea boy band as “Human IP.” Furthermore, Styling Life Group is planningto launch its first original apparel brand.
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Akasaka Entertainment City is scheduled to be completed in 2028, and even during theconstruction period, we will launch a series of measures to attract people and turn Akasaka
into a creative cultural center. This is not just a real estate business, but our content creative
activity to create an entertainment district like New York’s Broadway.
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We will strengthen the infrastructure to support this growth.
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Over the next three years, we will hire 300 experts to expand our business. We will acquire
the human resources needed to expand our content IPs globally.
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Accelerating the development of human resources to win on the world stage is also a priority.
First, creators who have specialized in content production will be asked to acquire “expansion”
skills as well. In other words, “ambidextrous” human resources will be developed. Next, “Beton Passion, Pay for Performance” will be thoroughly implemented as a personnel system
reform. Young, highly motivated employees will be promoted, and a performance-based
compensation system will be adopted. Additionally, the TBS Group University program, ourin-house university program, will be expanded, and employees will be dispatched overseas
to nurture independent human resources capable of succeeding globally. This, along withenvironmental improvements, will lead to direct investments of 1 billion yen per year, aimingfor a 13% increase in sales per employee.

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In a rapidly changing business environment, it is difficult to create new value with only theGroup's human resources. Therefore, we will foster open innovation, especially in the rapidly
evolving areas of technology and design. The stage is set at “Tech Design X” which wasopened in 2023. Through academia-industry collaboration, we will bring together various
talents here to create and nurture the “seeds” of new businesses, such as VFX and remoteproduction.
Page28Promoting sustainability management is another important theme. As a news media, we havea significant social responsibility.
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Our strength lies in our ability to share content effectively. As a media platform that connectswith its audience, we envision a better society and create movements to resolve issues withour partners. Our key initiative, the SDGs campaign “WEEK to the Earth Smile,” will continue
until 2030.
Page30We will implement specific measures in line with our three ESG initiatives: “Commitment toMeasures against Climate Change”, “Solutions for Issues through News” and “Acceleration ofBusiness and Human Rights Initiatives”. As a news organization, we will pursue a “just society”.