TBS Group Medium-Term Management Plan 2023
UpdatedTBS Group Medium-TermManagement Plan 2023

Contents

UpdatedGrowth strategy
FY2021 results (review)

3

Growth of the streaming business/Development of overseas markets
Live entertainment

10

Background to the update(business environment)(1) Events that have a financial impact [1] Revenue(2) Events that have a financial impact [2] Profit(3) Events that have an impact, including a non4
financial impact

Positioning

TBS Group Medium-Term Management Plan
2023 in the TBS Group VISION 2030

7

Overall picture

Sowing seeds for growth in anticipation ofthe post-COVID-19 world

Competitive strategy
Improving the value of broadcasting

Materiality
For the creation of wonderful moments

12

Material issues as
ESG strategies

13

Financial strategies

8

Consolidated revenue / Operating profit/
Simplified EBITDA / Cash Allocation

14

9

Shareholder return16

2

Review of the first fiscal year of the Medium-Term Management Plan 2023 (FY2021)

FY2021 revenue and operating income far exceeded the targets.
The mid-term management plan will be updated.
FY2021 results

Consolidated revenue / Operating income
Revenue400.0356.7

350.0


Operating income358.2
325.6

30.0

Consolidated revenue for FY2021 was 358.2 billion yen, exceeding
the initial forecast of 342.7 billion yen by 14.5 billion yen.
Operating income was 20.3 billion yen, far exceeding theforecast of 11.5 billion yen.

25.0

Plan and FY2021 results

Unit:billion yen

300.0

20.3

250.0
200.0

20.0
15.0



Revenue
Operating income

500.0

40.0

450.0
400.0
350.0

358.2

342.7

370.0

30.0

300.0

150.0

13.1

10.0

10.8

100.0

250.0
200.0

5.0

50.0

150.0
100.0

0.0

0.0

Operatingincome
margin

20.0

2019

2020

2021 (result)

3.67%

3.32%

5.68%

11.5

20.3

18.5

10.0

50.0
0.0

0.0

2021 (plan)

2021 (result)2023 (plan)

In FY2021 operating income was 20.3 billion yen.
This is the highest achieved since the shift to a holding company structure in FY2009.
The FY2023 target (18.5 billion yen) was achieved.

3

Background behind the update of the Medium-Term Management Plan 2023

Events that have a financial impact on the TBS Group [1] Revenue
Business environment
perception

Measures taken in anticipation of the post-COVID-19 world■ Many industries have adapted themselves to the situation more promptly than expected.
■ The online shopping and streaming businesses expanded significantly.
■ Development of live streaming business, etc.
■ Increase in the value of real experiences attributed to the growth of experience-oriented consumption
Recovery of terrestrial TV advertising

Diversification of the forms of supplied content■ Re-evaluation of reach and cost efficiency■ Diversification of streaming platforms■ Shift of advertising costs from fixed to variable■ Reviewing and rebuilding the value ofadvertising utilizing dataExpanding revenue base sustainably, withgrowing demand for content
 Promotion of supply
Retention of viewers at various windows■ Increase in content supplied to overseas OTTgiants
4Background behind the update of the Medium-Term Management Plan 2023

Events that have a financial impact on the TBS Group [2] Profit
Business environment
perception

Instillation of cost control awareness and expansion of the streaming business■ Production costs reduced using COVID-19 as an opportunity to reforming productions  Catalyst foreliminating waste created by customary behaviors■ A structure established for sustainable cost control■ Significant expansion and improved profitability of the overall content streaming businessAcceleration of technological innovation■ Remarkable progress of ICT and AItechnologies■ Business efficiency improvement accelerated
through both production and administrativedivisions■ An important task is to secure ICT-related
human resources.

Economic climate and trends in financial markets■ Changes in dividends received  Affect nonoperating revenue■ Changes in market capitalization value
resulting from stock price fluctuations■ Price increases, such as surges in crude oilprices
5Background behind the update of the Medium-Term Management Plan 2023

Events that have an impact, including a non-financial impact, on the TBS Group
Business environment
perception

Changes in social conditions

Acceleration of SDG initiatives■ Risk of large-scale loss of power due to anatural disaster■ Era when companies are expected to have abasic stance that enables the company to acts
to help achieve the SDGs

■ Destruction of systems throughcyberterrorism■ Uncertainty of consumption trends in the
post-COVID-19 world■ Social unrest attributed to the spread ofCOVID-19 variants■ Russo-Ukrainian war and other world affairs■ High inflation and the FRB in the UnitedStates increasing interest rates■ The actions a company takes to help achieve
the SDGs are directly linked to the evaluationof the company.
Legal regulations (including soft laws)■ Revision of Corporate Governance Code■ TSE's market restructuring■ Cabinet decision regarding the proposed
amendment of the Broadcasting Act■ Review of the principle of preventing owners
from owning multiple media outlets
6

TBS Group Medium-Term Management Plan 2023 in the TBS Group VISION 2030

Dividing the TBS Group VISION 2030 period into three phasesPositioning

Phase 32030

Accelerate and Maintain
Growth 2027-2030

Phase 22026

Development andGrowth 2024-2026

Revenue: ¥550 billion
Operating income: ¥38.5 billion
Operating income margin: 7.0%

Phase 1
Sowing seeds for growth inanticipation of the postCOVID-19 world 2021-2023

Goals targeted for FY2030

2023

 And increasing the ratio of earnings from nonbroadcasting businesses
 to 60% of the total
FY2023 new targets

2021

Revenue: ¥390 billion
Operating income: ¥26 billion
Operating income margin: 6.67%
2021

Previous targets

Revenue: ¥358.2 billion
Operating income: ¥20.3 billion
Operating income margin:
5.68%

Revenue: ¥370 billion
Operating income: ¥18.5 billion
Operating income margin: 5.0％

7TBS Group Medium-Term Management Plan 2023 Updated

Sowing seeds for growth in anticipation of the post-COVID-19 world
Overall picture

Improving theCompetitive value ofstrategy
broadcasting

Growthstrategies

Expand Digital Global Experience

Materiality

For creating wonderful moments
Original contents/Social missions/Technologies

ESG Strategy

For the Earth as a life-bearing planet, for everyone
working, as a group of responsible companies
8Improving the value of broadcasting

Winning next-generation viewers and rebuilding social valueCompetitive
strategy2021
results

Futuremeasures

New Family CoredemographicALL

1234NTVCXTBSEX

1234NTVEX
NHKTBS

Goldentime

1234NTV
CXTBS
EX

1234NHK
NTV
EXTBS

Primetime

1234NTV
CX
TBS
EX

1
134NTVEX
NHKTBS

Non-primetime

1233NTV
CX
TBS
EX

1234NTV
EXNHKTBSAll day■ The share of the spot advertising market held by the five key
broadcasters in Tokyo exceeded 20% for the first time since 2008.
← Significant growth in the New Family Core demographic (men and women aged
4 to 49 years old) as an important index of spot advertising sales

Improving non-prime time programs and regular programs
Winning next-generation viewers, expanding the scope of reach, and rebuilding
the value of TV■ Aim to be ranked 2nd or higher in all time slots in both thenew Family Core demographic and all viewers
Improving the program lineup and earning power byimproving regular morning programs
Reorganizing and strengthening variety shows in Golden andPrime times
Further promoting the development of creators and renewingprograms
Improving the value of broadcasting through major sports
events and the SDGs campaign■ Using data to explain and propose the value of media
Analyzing and utilizing viewer data again
 Rediscovering and rebuilding the value of TV advertising9Digital/Global

Growth/overseas market development of streaming business

Producing content targeting the global market
Growthstrategy■ Starting global content streaming on overseas
streaming platforms

×■ Starting to produce content which are assumed to be
distributed in the global market
Expanding collaborations with overseas creators■ Establishing THE Factory, a newcompany for overseas strategies
A total budget of 30 billion yen for content
production
Creating 2 or 3 global hits within five years

×■ Remaining strong in the free streaming domain (such as TVer)
Monthly # of views on TVer(million)
300

March 2022

258 million views

250200■ Building a new studio in Midoriyama
Global standard specifications/One of the largest
studios in JapanTo be completed in June 2023

Making it the base for the production of high-end
content■The MUB* of TBS content increased
35.8% on average, which is thehighest among all commercialbroadcasters.
* MUB: Number of monthly unique browsers

150100500

2020-032020-10
CTV(Data from Video Research Ltd.)PC2021-03
SD

2021-09All

2022-03■The program ranked 1st overall in thethree months ended December 31,
2021 is TBS's Saiai.
First piece of content to achieve morethan 20 million views in one season

10

Experience : live entertainment

Use of the Akasaka base
Growthstrategy■ A play of Harry Potter and the Cursed Child■ Akasaka Entertainment City

Asia debut, set for a long-run, at TBS Akasaka
ACT Theater in July 2022
Advance tickets sold out for all performance dates
on and before September 30

The area for new development will be completedin 2028.
Bring inspirational fun, surprise, and pleasure topeople all over the world under the concept,“Shake The World. AKASAKA.”

Improve the value of Akasaka further to make it a town that delivers wonderful moments
to share pleasure and happiness with people, such as by opening a studio with a spectatingfunction.

11

Material issue: For the creation of wonderful moments

The most important tasks in business domainsthat the TBS Group should work onMateriality

Creating original content
loved by the world■ Developing and recruiting creators
who create original IP■ Creating a corporate culture and aframework that will enable thegroup to support challenges■ Recruiting human resources andreinforcing the structure foroverseas expansion■ Establishing a system for managing
and using content that will increase
their lifetime value

Changing workstyles bydeveloping and using
technologies

Fulfilling the social
missions of a mediacompany■ Establishing norms and system towin overwhelming trust for allcontent■ Developing and using unique
technologies for improving thequality of content■ Further enhancing functionality toserve as an information lifeline in
the event of a disaster■ Reinforcing the analysis
infrastructure for data-driven
operations■ Driving changes in society withcontent aimed at achieving the SDGs

■ Developing technologies that willlead to higher business process
efficiency and labor-saving (costreduction)■ Enhancing global measures as acompany introducing JapanesecultureDetails of the identification of material issues will be described in the TBS Group Integrated Report 2022.

12

Material issue: For the creation of wonderful moments

Most important tasks that will be the ESG strategies
that the TBS Group should work on
Materiality
ESG Strategy

Providing wonderful moments
to the Earth,a life-bearing planet■ Setting targets and taking action toachieve zero carbon■ Driving the production ofenvironmentally friendly,
sustainable content■ Strengthening the array of measures
for maintaining biodiversity

Strengthening governance asa group of responsible
companies

Providing wonderfulmoments to everyone
working■ Creating a fair, safe work
environment where diverse humanresources can participate actively■ Enhancing training programs toimprove the skills of all workers■ Ensuring appropriate commitmentto the supply chain■ Strategically making decisions andstrengthening risk management for
the reform of the business portfolio■ Ensuring the directors and executive
officers are diverse in their skills,
genders and other attributes■ Thorough engagement with all
stakeholders including
shareholders

Details of the identification of material issues will be described in the TBS Group Integrated Report 2022.

13

Consolidated revenue, operating income, and simplified EBITDA

Expanding the revenue base through initiatives including the innovation ofbroadcasting and the expansion of the streaming businessImproving profitability by maintaining the cost control structure
Financialstrategies

Revenue
Revenue

371.5

Revenue
390.0

358.2

40Revenue

33.6
9.4％

Lifestyle Business
Real Estate and OtherBusiness
Total
Share of revenue from nonbroadcasting businesses

FY2023 targets

30

Revenue: 390 billion yen
Operating income: 26 billion yen
Simplified EBITDA: 39.5 billion
yen

25

15
105

FY2021 results
Media ContentBusiness

3520
26.0
6.7％

24.0
6.5％

20.3
5.7％

39.5
10.1％

37.5
10.1％

Operating income
Simplified EBITDA(= operating income +depreciation and amortization)

Unit: billion yen

FY2022 plans

FY2023 targets

Share of revenue from nonbroadcasting businesses:
Increasing it to 47.0% of the total(Up 3.6 percentage points fromFY2021)

281.4

291.4

307.4

10.9

14.3

16.0

61.0

63.7

66.0

2.3

2.4

2.6

15.8

16.4

16.6

7.0

7.3

7.4

358.2

371.5

390.0

Upper column: Revenue

20.3

24.0

26.0

Lower column: Operating income

43.4%

44.9%*

47.0%** Rough estimate

14Cash allocation under the Medium-Term Management Plan 2023 Updated

Financialstrategies

Sowing seeds aggressively over the three years with a focus on EDGE areas byusing funds from sales of investment securities
Improving the earning power towards achieving the VISION 2030. Aiming forsustainable shareholder return as well.

Funding

Investment
in growth

Shareholder return

Approx.
¥25 billion

Use of current
assetsapprox.
¥100 billion

Sales ofinvestment
securities¥60 billion ormore
Sales of investment securities
Continuing the sales to reduce crossshareholdings in accordance with theCorporate Governance Code and makefunds for strategic investment

FY2021 results

Approx.
¥20 billion¥140 billion(plan)

Strategic investment

Dividends + Treasury stock acquired

Sowing seeds aggressively in areas of the EDGE
growth strategies and original IP
Making the seeds germinate under the MediumTerm Management Plan 2026 in Phase 2 andleading them to an improvement in corporate
value through the achievement of the VISION 2030

A lower limit of dividend at 30 yen was set inFY2021, but the amount of dividend was increased
to 37 yen. The amount of dividend for FY2022 isplanned to be 40 yen.
Further, as disclosed, the acquisition of treasury
stock is being carried out at present and will beconsidered flexibly in the future.

FY2021 results

Approx.
¥50 billion

FY2021 results

Approx.
¥6 billion

15

Return of profits to shareholders: Dividend increased and treasury stock acquiredin anticipation of the post-COVID-19 world
Shareholder
return■ We will invest in growth aggressively and expand profit over medium- to long-term, aiming to improve our corporate
value.
■ We will strive to increase dividends by switching to a basic policy of stably, sustainably paying dividends.
■ During the period for the Medium-Term Management Plan 2023, we will continue to pay dividends stably with alower limit of 30 yen, in consideration of the fact that our business performance is recovering from the impact of theCOVID-19 pandemic and the future is uncertain.

Basic policy

The Company positions the return of profits to shareholders as an important management issue and its
basic policies are to provide stable and continuous dividends while aiming for a payout ratio of 30% on aconsolidated basis. The Company also strives to enhance returns through special dividends and othermeasures when business performance increases. We will continue to flexibly consider the acquisition oftreasury shares as before.

Medium-Term
Management Plan2023

Minimum amount of 30 yen per share.

Dividend policy

However, the Company may revise its minimum dividend in the event that it does not record net income
for two consecutive fiscal years.

FY202137 yen per share

Dividend(interim: 15 yen, year-end: 22 yen)

FY2022

Dividend forecast

40 yen per share(interim: 20 yen, year-end: 20 yen)16

Disclaimer
Forward-looking statements on future results and all other content
in this document are based on the Company’s judgment at the timeof publication. This document does not assure or guarantee that thestated numerical plans and measures will be achieved. Risks anduncertainties are inherent in this document.
Please note that future results may differ materially fromstatements herein, depending on changes in factors,including economic circumstances, market trends andbusiness conditions.

For inquiries:
5-3-6 Akasaka, Minato-ku, Tokyo 107-8006
TBS HOLDINGS, INC.

Tel: +81-3-3746-1111 (main line)
Web: https://www.tbsholdings.co.jp/en/17

From each moment, a better tomorrow.