TBS Group
Integrated Report 2021

From each moment, a better tomorrow.

66.6°
23.4°

Chapter 1

Introduction

Corporate Philosophy / Brand Promise
Corporate Philosophy

TBS Group Code of Conduct
Providing Content, Information, and Services that Enrich the Mind
— Pledge to Our Customers

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.

Brand Promise
To create entertaining and inspiring experiencesthat move hearts and minds.

From each moment, a better tomorrow.

■ 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 contents, 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.
■ Respect for feedback from viewers, listeners, and customers
We will listen closely to feedback from viewers, listeners, and customers and continually provide a worthwhiletime to ever more people.

Respecting Diverse Values and Striving to Make a Positive Contribution to Society— Pledge to Society■ Respect for human rights and diversity
We uphold human rights, respect diverse values, and reject all forms of discrimination and prejudice.
■ Philanthropy and environmental preservation
We value our bonds with society and harmony with nature, and will work together with a sustainable society tobuild a better 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,
and conduct ourselves with fairness and transparency.

Aiming to Realize our Philosophy with a Free Spirit— Pledge to Our Staff■ Development of outstanding talent
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.
■ Building uninhibited workplaces
Because people accepting each other with a free spirit are important to us, we build workplaces where everyone
can develop 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 media group second to none.
April 1, 2020

TBS Group Integrated Report 2021

1

Chapter 1

Introduction

On the Release of the Integrated Report / Editorial Policy /Table of Contents

On the Release of the Integrated Report
TBS underwent a complete transformation between 2020 and 2021.
Along with formulating its Corporate Philosophy, Brand Promise, and TBS Group Code of Conduct (April 2020), theCompany changed its name from “Tokyo Broadcasting System Holdings, Inc.” to “TBS HOLDINGS, INC.” (October 2020).
We also established TBS Group VISION 2030 (May 2021), as a guideline for finding the “ideal TBS” — a TBSthat goes beyond broadcasting and Tokyo. We have also gradually reorganized the Group while consolidating andstrengthening corporate resources.
During these uncertain times, which have in part been fueled by the worldwide COVID-19 pandemic, thesocial mission that the TBS Group must fulfill is taking on increased importance. With a focus on providing quality
entertainment and bringing lives together through “information lifelines,” we aim to bring the world wonderful“moments” for a new age while being a growing corporate group tirelessly engaged in self-improvement.
As a means to inform our shareholders, investors, and all other stakeholders about this decision and the journeyof self-improvement, this year the TBS Group released an integrated report for the first time. We hope this report will
give readers a general perspective on the TBS Group and shed light on our past, present, and future efforts to achieve
continuous growth.
Takashi Sasaki
President & Representative Director
TBS HOLDINGS, INC.
TOKYO BROADCASTING SYSTEM TELEVISION, INC.

Editorial Policy<Scope>This report covers the activities of TBS HOLDINGS, INC. and TBS
Group companies (20 consolidated subsidiaries, listed elsewhere).

<Reporting period>

Section 4 Business-Specific Strategies

While this report generally focuses on April 2020 to March 2021,
the current financial reporting period, it also includes content frombefore and after this period that is needed to provide news andimportant information.

Business Outline・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 32
Media Content Business・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 34
Lifestyle Business・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 36<Content>

Table of Contents

This report contains information important for short, medium, andlong-term value creation at TBS HOLDINGS, INC. and TBS Group
companies, as well as for its impact on stakeholders.

Section 1 Introduction
Corporate Philosophy / Brand Promise<Guidelines referenced>

TBS Group Code of Conduct・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1
On the Release of the Integrated Report /Editorial Policy / Table of Contents・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2

Detailing businesses and activities aimed at TBS Group value
creation, this report was prepared based on such documents
as “Integrated Reporting (IR)” by the International Integrated
Reporting Council, an international framework for integrated
reporting, as well as the Ministry of Economy, Trade and Industry’s“Guidance for Integrated Corporate Disclosure and CompanyInvestor Dialogues for Collaborative Value Creation.”Content concerning sustainability was prepared based on
documents such as the Ministry of the Environment’s “Environmental
Reporting Guidelines 2018” and the Global Reporting Initiative’s“GRI Sustainability Reporting Standards.”

TBS over the Last 12 months・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4
Message from the President・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6
Sustainable Development Goals (SDGs) Campaign“Week to Make the Earth Smile”・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・11
Section 2 Long-Term Vision andMedium-Term Management Plan

TBS Group VISION 2030・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12
TBS Group Medium-Term Management Plan 2023・・・・・・・・・・・・・・・・14
Akasaka Entertainment City Plan・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・16
Message from the Head of Finance Strategy・・・・・・・・・・・・・・・・・・・・・・・・17
Financial and Non-Financial Highlights・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20

TBS Group
Integrated Report 2021

Section 3 Value Creation Story<On the Cover>
From each moment, a better tomorrow.

66.6°
23.4°

2

TBS Group Integrated Report 2021

The cover of this report features our Brand Promise
superimposed on the letter “T” in TBS.
The “66.6° (from the TBS’s television channel)” and“23.4° (the angle of Earth’s axial)” at the foot of “T” areused in the new TBS logo design (details on Page 4).

TBS At a Glance・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
TBS’s Growth Trajectory・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 24
The Growth Trajectory of Our Content・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 26
Strengths and Business Model・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 28
Content and Platforms・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 29
Value Creation Process・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 30

Real Estate and Other Business・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 38
Section 5 Non-Financial CapitalTBS’s Non-financial Capital and Strengths・・・・・・・・・・・・・・・・・・・・・・・・・・・ 40
Human Capital・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 42Intellectual Capital・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 44
Social and Relationship Capital・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 46
Manufactured Capital・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 47
Section 6 Initiatives to Support

Value Creation

The TBS Group’s Take on Sustainability・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 48
Environmental Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 50
Social Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 52
Governance Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 54
Corporate Officers・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 56
Overview of Corporate Governance System /Group Governance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 58
Compliance・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 59
Risk Management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 60
Dialogue Session Between Chairman andOutside Board Director・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 62
Section 7 Business Results andCompany Information

Analysis of Financial Position and Business Results (MD&A)・・・・ 64
Financial and Non-Financial Data for the Past 10 Years・ ・・・・・・・ 70
Company and Investor Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 72
TBS Group Integrated Report 2021

3

Chapter 1

Introduction

TBS over the last 12 months
From 2020 to 2021, we battled COVID-19 while at the same time making visionary reforms.
This has been a year of advancing efforts to become the “ideal TBS” — a year of profoundly re-acknowledging
our social mission of providing quality entertainment and serving as a trusted information lifeline for protecting
lives.

▶ April 2020

Innovating the design of the TBS brand logo
The TBS Group’s new logo, the use of which began in all TBS businessactivities in April 2020, expresses the Group’s aspirations, which lookahead to the future and are informed by 70 years of history.
The letters are in “TBS Blue” in a simple typescript consisting ofstraight lines and rounded edges, with the T and S slants that go up
and to the right.
The 66.6° slants symbolize our terrestrial broadcasting channel
number 6 and create 23.4° angles, which represent the Earth’s axial
tilt, which represents and signifies the TBS Group’s commitment toproviding content to the world.

COVID-19 measures▶ October• Change the company name from Tokyo Broadcasting
System Holdings, Inc. to TBS HOLDINGS, INC.
• Appointed a special executive officer to be in chargeof the Lifestyle BusinessAs soon as the COVID-19 outbreak happened, TBS needed
to take business continuity plan (BCP) measures in order tocontinue providing accurate information as a news organization. “Emergency teleworking” was implemented one
month prior to the declaration of a pandemic by the WHO(February 2020), and masks were continually distributed to
all TBS personnel. Previous efforts to foster a teleworking
environment as part of “T-Work,” a working style characteristic of TBS, along with stockpiling of masks in preparation
for a pandemic since before the COVID-19 outbreak, madea significant difference. We also implemented governancereforms that included setting a goal to increase the ratio of
female managers in April 2020 and changing the Board of Directors structure in June. Furthermore, in July we established*TBS ACT, INC.: Japan’s largest general production company, comprising 12 companies
in the TBS Group. Its three units—technology, art, and computer graphics—center on
TV programs broadcast by TBS.

February
▶2
月

•
a PCR
testing machine in• D社eployed
内に PCR
検査機を導入our offices

2021

May
▶5
月

•
Announced
TBS VISION2030
Group VISION 2030
• 「TBSグループ」・ andTBS Group Medium-Term Management「
TBSグループ
中期経営計画 2023 」・
Plan
2023

発表
• A
nnounced the goal of using 100%
renewable
for the Midoriyama Studio’s• 「緑山スタジオの使用電力を・
electricity needs in FY2021
2021年度に100％再エネ化 」発表▶ January• Changed the composition of theNomination and Compensation
Advisory Committee• Conducted TBS RADIO, Inc. “Challenge Zero CO2
Reduction Campaign”

Front entrance

the SDGs Planning and Strategy Department and conducted
the SDGs Campaign throughout the Group. To ensure that
we can provide quality entertainment to a society feeling besieged by COVID-19, we have deployed our own PCR testingmachine as a means to prevent performers from becoming
infected. In April 2021, operations commenced at TBS ACT,
INC.*, the result of Group restructuring, and we announced
the TBS Group VISION 2030 and TBS Group Medium-Term
Management Plan 2023 in May. While this a year where we
supported a society battling COVID-19, it was also a year of
instituting self-reform with a view to the future.

▶ JuneSanitizer in the sub
control room

• Changed Board of Directors structure (increased Outside Director count to 1/3 of total Board membership)• Appointed a director in charge of ESG

April
▶4
月

• Instituted the Group Executive Officer System andGroup Executive Committee▶ JulyThe sub control room is also
partitioned with acrylic panels“Week
to Make the Earth Smile”
第 2 弾を実施• Established the SDGs Planningand Strategy Department▶ March• T he WHO declared a
COVID-19 pandemic

2020•
ACT, INC., a company12
formedthrough the• T技BS術・美術関連の関係会社社を統合した
integration of 12 technology and art-related「 TBS アクト」が事業開始
companies, began operations• C
Sonducted
DGs キャンペーン
「 地球を笑顔にするWEEK」•
the second
SDGs Campaign▶ May▶ April• Emergency Teleworking Questionnaire results
Over 90% of personnel had been teleworking
since February• Set goal to achieve female manager ratio of
20%+ by the end of FY2024

November▶ 11月

April 2021 —Japan’s largest group of experts has arrived!

•
an SDGs
Campaign “Week to Make
the Earth• C
Sonducted
DGs キャンペーン
「 地球を笑顔にするWEEK」を・
Smile”
1 週間にわたり実施• Conducted an exclusive interview with Secretary-General of• theアントニオ・グテーレス国連事務総長の単独インタビューを実現
United Nations António Guterres• A
voice transcription
Mojiko• 
音I-powered
声認識 AI 文字起こしエディタ「editor
もじこ」
が・ received the IT
Award from the Japan Institute of Information Technology
企業情報化協会主催「 IT 賞 」を受賞

▶ February• Instituted emergency teleworking to deal
with COVID-19• Made sanitizer available in the office• Distributed masks to employees/staff

4

TBS Group Integrated Report 2021

TBS Group Integrated Report 2021

5

Chapter 1

Introduction

Message from the President
TBS Group’s social mission and purpose 

We delight in making people smile with“relaxing moments”
As we publish our Integrated Report, I have been thinking
about the purpose of the TBS Group once more.
We want to be a company that delights in making many
people smile. That’s our purpose as a member of the service
industry.
For example, people suffering from disasters feel at easeand smile a little when they watch our broadcasts. People
who come home tired from work smile refreshed after feeling emotional over a moving drama. Children watch TBS
programs and dream of becoming the athletes they see inthe future. We believe our purpose is to make as many people as possible smile with “relaxing moments” anytime.
In other words, we recognize that our work is not basedon “give and take,” but rather that giving, or serving, comes
first. Even in the event of a major disaster, we act based ona strong conviction to never stop broadcasting and we continue to do this for the benefit of the public. This is what weconstantly train to do.
We can also have an extensive influence through the airwaves. It’s good if it is only useful for people, but there is alsoa danger that it may have unexpected negative effects. For
the past 70 years, we have doing such the airwaves carefully
and correctly. Through this experience, we have inherited aspirit of “service” that makes us want to help people as partof our DNA. By protecting people from disasters and preserving peace, we protect the property and lives of the public.
We believe this is the social mission of the TBS Group.
Amid the flood of information from various media, wewill continue to provide accurate and fair information andprovide high-quality content. We believe our “credibility” isthe greatest value we offer.

Reforming the mindset of the TBS Group Transformation from a media group
to a content group“From each moment,a better tomorrow.”
Takashi Sasaki
President & Representative Director
TBS HOLDINGS, INC.
TOKYO BROADCASTING SYSTEM TELEVISION, INC.

6

TBS Group Integrated Report 2021

Transformation from a media group to acontent group
We have always valued an approach of “be the best rather
than the biggest broadcaster.” In the era when television stations were the most influential media, this phrase reminded
us to stay humble and not to be arrogant. However, now thattelevision broadcasting is being overtaken by the internet interms of advertising expenditure, we felt the need to rebuild
TBS into something new that is not an extension of the past.
Therefore, in April 2020, we formulated a new corporate philosophy and brand promise, and revamped the TBS
logo. In October 2020, we changed our corporate name from
Tokyo Broadcasting System Holdings, Inc. to TBS HOLDINGS,
INC. Removing the localized focus on Tokyo and the limitation to broadcasting in our corporate name sends a strong
message that we will go beyond Tokyo and broadcasting,making clear our commitment to not settling for a futurethat is broadcasting only.

“From each moment, a better tomorrow,” which is ourbrand promise, is our intention to define “content” as anything that moves people’s hearts, and to become a starting
point for influencing society. The management team formulated the new corporate philosophy after a year of discussion. Based on this philosophy, a project conducted by young
employees developed the brand promise. “From each moment, a better tomorrow,” the phrase they came up with,shows that we are a group of people who think producing
things is fun, and it conveys our passion for creating.
Unlike overseas media, Japanese television media ischaracterized by the fact that it both broadcasts and creates
content at the same time. However, from now on, we will
focus more on content creation, aiming to achieve worldclass standards. Moreover, our desire to “create relaxing moments” goes beyond content: we will also deliver outstanding moments that people can enjoy through means that
include events and education. TBS has always created highquality content, but by aiming even higher and transforming
ourselves from a media group to a content group, we willreach a global scale of business and establish a presence inoverseas markets as well.

Looking back on the previous
Medium-Term Management Plan Laying the foundations for transformation
through investment and group reorganization
Previously, in “TBS Group Medium-Term Management Plan
2020,” we set ourselves the goal of “Diversification andchallenge to total media through investment and group reorganization,” and invested around ¥50 billion in mediumto long-term growth, including video streaming, the digitalarea, intellectual training for children, and the next-generation redevelopment of Akasaka.
In terms of Group reorganization, we consolidated over
80 subsidiaries into mainly six core companies. Broadcasting-related subsidiaries have been combined into three companies: TOKYO BROADCASTING SYSTEM TELEVISION, INC.,
TBS RADIO, Inc., and BS-TBS, INC. Program production subsidiaries went into TBS SPARKLE, Inc. Program sales, digitalbusiness, and television shopping subsidiaries were put into
TBS GLOWDIA, Inc. Finally, subsidiaries with technology, art,and computer graphic functions were rolled into TBS ACT,
INC. Although each company is an independent corporation,
we will remove as many barriers as possible to build a systembuild a system of mutual cooperation and friendly rivalry toward a single goal. Although various expenses were incurred
as a result of the reorganization, we improved management
efficiency, and I believe we have developed a system that willallow us to continue producing high quality content over thelong term.
The effects of group reorganization are also being seen
in recruitment. In the past, because of the small size of eachcompany, recruiting efforts rarely succeeded. In one example, when recruiting new graduates for the merged com-

TBS Group Integrated Report 2021

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Chapter 1

Introductionpany TBS SPARKLE, Inc., the number of applicants has beensteadily increasing each year, as the idea that they can do awide range of jobs at a core group company of TBS appears
to have become more widespread and understood among
students (the applicant-to-hire ratio in FY2020 was 35.1
times, and 38.5 times in FY2021 (estimate)).
We believe we have laid the foundations for creating
new content by bringing into existence a huge group of creators, bringing people together, and valuing creators in thisway.
The reorganization has also eliminated the complex
multi-layered structures that existed before, making it possible to assign a full-time auditor to each company and aperson in charge of business auditing and compliance, which
has strengthened the compliance and governance of theGroup as a whole.

TBS Group VISION 2030 

We will maximize the value of our content
through EDGE (Expand Digital, Global, andExperience)
The TBS Group Vision 2030, announced in May 2021, is avision of where we want to be in ten years’ time based on
our ability to create content and go beyond broadcasting toprovide the wonderful “moments” at all kinds of times andplaces. To achieve this ideal, we will innovate both in regard
to content creation and content “expansion.”
Under the EDGE* expansion strategy to “expand” ourcontent, we aim to dramatically increase the value we provide as well as our revenue as a company with an edge inthe three most important areas: digital area other thanbroadcasting, overseas markets, and experiences (real businesses that provide experiences such as live entertainment
and lifestyles).
In the digital area, we will work to spread our content
and strengthen platforms in streaming.
In the streaming business, we will focus on TVer, a commercial video streaming service, and Paravi, a subscription
video-on-demand service. TVer allows viewers to watch programs they missed during the original broadcast wheneverthey want before the next broadcast. This is essential forthe stable growth of terrestrial broadcasting as well as thegrowth of TVer in its own right, and we are looking to increase our profits in this area.
Paravi will specialize in dramas and variety programs,
which are TBS’s strengths, in contrast to the Netflix and Amazon Prime Video business model, which centers on buying
and selling original dramas and movies. This makes it a platform where TBS can demonstrate its superiority as it seeks tofurther develop its drama content to a global level.
As a further push into overseas markets, we will set
ourselves the challenge of creating drama content thatspecifically targets overseas viewers from the outset. In thepast, the drama Jin was a worldwide hit. The reason for its
popularity among overseas viewers was because the series

8

TBS Group Integrated Report 2021

raised issues with today’s medical system, which resonatedwith them, through the lens of the dawn of medical care in
the past, rather than because it was a historical drama. As in
this case, we believe that TBS has the strength of content tofind markets overseas. However, there are many competitors
in the overseas market, including the U.S. and Asian countries such as South Korea, and China, and targeting overseas
viewers means that we need to consider securing creators,
alliances with overseas companies, and M&As. This alsocomes with risks, but we believe that if TBS’s content is wellreceived overseas, our revenue will see dramatic growth.
Expanding “experiences” means not only in broadcasting, but also reaching every wonderful “moment” of consumers. Our two live entertainment venues TBS Akasaka ACTTheater and IHI Stage Around Tokyo will serve as platforms
for doing this. By leveraging our ability to produce theaterin addition to media, we will further increase the value weoffer as a B2C business.
With the Akasaka Entertainment City Plan, Akasaka willbe transformed into a city of live entertainment. This will
include TBS Akasaka ACT Theater serving as a dedicated theater for the stage production of Harry Potter and the CursedChild in 2022 as well as the completion of another theaterin 2028 to create a building that will house leased offices,
commercial facilities, and a hotel. By providing a wide variety of content for visitors to Akasaka through plays, events,
and broadcasts, we aim to remake Akasaka into a city thatreaches out and connects with people’s joy and happiness todeliver wonderful “moments.”
Additionally, we will also utilize the strength of ourcontent in intellectual training and educational fields, todevelop the potential of children who will lead the worldin the future. It is the field of emotional education rather
than studying for exams where we can take advantage ofour production techniques. By capitalizing on the powerof digital technology and incorporating entertainment, we
will continue to support the realization of a future full ofhope for children.
* EDGE is a synonym for Expand Digital Global Experience

TBS Group Medium-Term Management
Plan 2023 

We will sow the seeds for the realization of
TBS Group VISION 2030
We have positioned the three-year period of the TBS Medium-Term Management Plan 2023 as a period for focusing on
recovery from the COVID-19 pandemic and sowing seeds for
growth toward the realization of TBS Group VISION 2030.
Given the continued slump in spot commercial sales,
which were previously the mainstay of revenue, and thecurrent reluctance of consumers to spend money due to the
COVID-19 pandemic, there is a need to eliminate waste assoon as possible without being constrained by conventional notions. At the same time, we have to invest in priority
areas in order to accelerate our innovating of broadcastingand our growth strategies. For example, in order to promote
overseas business, we will make the necessary investments incollaboration with overseas companies and in creating content for overseas markets to fuel growth once the COVID-19
pandemic has ended.
Our “sowing seeds” will commence with the stage production of Harry Potter and the Cursed Child. Conventionally, the duration of a production at a venue is around threemonths. However, Harry Potter and the Cursed Child will be
the first TBS long-run production with no fixed end. This
marks a fundamental change in the way theaters run, as
they usually only operate for about six months of the year,
considering the period of preparation for the next show
once one show has ended. Therefore, we are trying to makea long-term plan, which includes the publicity that usually
goes along with a performance immediately before it. The
city of Akasaka will also be changing, with the constructionof a large stairway leading from Akasaka Station to the theater. Through these capital expenditures, we will increase
the number of fans and repeat customers over a long periodof time, including young children who will look forward togoing to see Harry Potter and the Cursed Child once they arein third grade, leading to the success of the show.
We aim to achieve operating profit of ¥18.5 billion in
the final year of the plan (FY2023). Achieving profit targets
while sowing seeds for growth is quite challenging. However, this target is based on our efforts to initiate momentum in the video streaming business, overseas expansion,
intellectual training and education, and other seed sowing
activities. Therefore, its significance should look different
from FY2018, when we earned significant profit throughspot commercial sales.

Sources of competitiveness 

We will revitalize our organization bycapitalizing on distinctive individuality todeliver excellent content to the world

ering excellent creators together, but TBS’s corporate culture,
which respects the distinctive individuality of its employees,
also contributes.
In the production of dramas, after the planning is donein the Programming Department, marketing and research is
conducted, and the title is worked out in meetings. I feelthat dramas produced through a majority consensus have astrong tendency to receive average ratings rather than becoming blockbusters. I believe the reason why blockbuster
dramas such as NAOKI HANZAWA and The Full-Time Wife
Escapist are produced is because we have a culture that respects individuality and accepts outstanding ideas.
NAOKI HANZAWA is a drama that was broadcast when
I was head of the TV Programming Division. When I was
first approached with the project, I was initially against it
because I thought it would be difficult to get high viewer
ratings for a drama with a business theme rather than a lovestory. However, I gave the go-ahead based on the talent andenthusiasm of the very capable director in charge of the drama, and as a result, it became a huge hit with viewer ratings approaching the 20% mark from the very first episode(the household ratings were 19.4% for the first episode and42.2% for the final episode).
What I realized at the time was that improving organizational skills is not the same as killing individuality, the sameas in rugby which I played in my student days. The important thing is not for everyone to think the same and act inaccordance with group discipline, but for each individual toposition his or her own role in the organization, to fulfill his
or her own role, and then to have a distinctive individuality.
I believe that maximizing the performance of each individual will revitalize and strengthen the entire organization.
In other words, it is the organization which can effectively
bring out the full potential of distinctive individuality thatwill win.

One of TBS’s greatest strengths is its ability to produce dramas comparable in quality to movies. This is a result of gath-

TBS Group Integrated Report 2021

9

Chapter 1

Introduction

Pick Up

A Starting Point for Influencing Society

Concept of sustainability at TBS 

We will continue to grow continuously
through “challenge and fairness” and“inheritance and creation”
As a company, we aspire to achieve high profitability andremain focused on winning. However, we must not win by
doing something unfair. This is because we can always startagain if we lose, but if our credibility is damaged, we will
not be able to do business anymore. For this reason, we always convey a message that tells our employees to challengethemselves but act fairly as a key value.
Recently, we also began to address the SDGs concept.
This is partly in response to the demands of society, but also
in order to change our own mindset. Up until now, we havebeen engaged in “consumption-oriented” business, where
we cut down trees to make money, but have not gone so
far as to plant trees. Therefore, by continuing to address theSDGs, we are trying to build human relationships and organizations by thinking about how important sustainability isin its own right and about sustainability as both a company and a society. First, in order to make the SDGs accessible to more people, we included all TBS Group members in
the “Week to Make the Earth Smile” campaign starting in
2020, and invited companies that agree with our objectives
to participate as “partners” in promoting the SDGs together.
So far, we have held the campaign twice, and it has alreadybeen effective in raising the awareness of viewers about theSDGs and serving a role as a “starting point for influencing
society.”“Inheritance and creation” is also an important concept
for the sustainability of the TBS Group. In the past, it wasoften the case that even when we had people who produced
excellent programs, their experience and skills would not bepassed on to the next generation. We believe this is not theway to go. We will continue to change our mindset, by giving ourselves a 7 out of 10 when being recognized as a fully
qualified editor or journalist, for example, and give ourselves
the remaining 3 points when we pass on our experience andknow-how to junior colleagues. If senior colleagues pass on

all they have learned to their junior colleagues who can inherit, create and further absorb it without measuring thepersonal gains, I believe we can become a strong company.
Furthermore, in order to enhance the corporate value ofthe entire TBS Group, we will continue to instill a sense ofgroup unity. This year, the six core companies held a joint
induction ceremony for the first time in our 70-year history.
This is an indication of the TBS Group’s commitment to working together as one to create content. We will work harderthan ever to improve management efficiency and strengthen group governance.

To our stakeholders 

We will continue to grow by creating,delivering, and sharing every wonderful“moment” in partnership with all of our
stakeholders
The TBS Group will continue to take on new challenges inorder to remain a strong company even in this era known as
the new normal. As a content group founded on responsible
broadcasting, we will provide wonderful “moments” in partnership with all of our stakeholders to contribute to the realization of a happy, sustainable, and prosperous society where
diverse values are respected. As the TBS Group continues to
evolve, expect great things from us.

Sustainable Development Goals(SDGs) Campaign“Week to Make the Earth Smile”

As one of the efforts connected with its brand promise, “becoming a starting point for influencing society,” the TBS
Group launched a globally unprecedented major SDGs campaign, “Week to Make the Earth Smile” in November 2020.
During the campaign, TOKYO BROADCASTING SYSTEM TELEVISION, INC., TBS RADIO, Inc., and BS-TBS, INC. together
broadcast more than 40 programs that dealt with various issues and Japanese and international efforts to achieve theSDGs. The campaign was recognized as a groundbreaking achievement, and received high marks its programming, including an unprecedented individual interview with United Nations Secretary-General António Guterres.
The second stage of the Campaign took place over ten days, including the Golden Week holidays, from April 26 to
May 5, 2021. Its theme was “Get Involved with the SDGs,” and it urged viewers to begin efforts that they could carryout on their own. The Campaign was wide-ranging, and one of the associated projects was an online event that gavechildren an enjoyable introduction to the SDGs. TBS plans to continue the Campaign until 2030, the year that the United Nations has designated for achieving the SDGs.
Video Research Limited surveyed members of the viewer for “Week to Make the Earth Smile” and found that people who had viewed or listened to the programs had a much greater awareness, understanding, interest, and concern
than non-viewers. Furthermore, people who had seen or heard both stages of the Campaign in succession were more
likely than others to be aware of the need for specific actions. These results clearly showed the effectiveness of continuing the Campaign, and it has indeed become “a starting point for influencing society.”

The SDGs: Awareness, Interest, Actions Taken,
and Intentions

Understanding of the SDGs

■Program viewers ■Non-viewers■Program viewers ■Non-viewers

Awareness ofthe details of the goals

39.4

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

TBS Group Integrated Report 2021

97.8

68.1

Interested andconcerned

85.6

20

40

“The year 2030 is the target
date for achieving them.”

80

100（%）

73.5

44.5

82.4

50.9

“The goals include details
that involve everyday life.”

89.1

60.6

“Companies and other organizations aretaking measures to achieve the goals.”

85.0

55.0

87.5

55.5
0

20

40

60

42.2

82.4

53.2

“We as individuals can takemeasures to achieve the goals.”

60

88.2

61.9

“National and local governments aretaking measures to achieve the goals.”

42.2

93.9

68.3

“Seventeen goals havebeen presented.”

85.9

41.9

Action taken toward
the SDGs or intention
to act“The goal is to leave the world
better than it was before.”“The world is joining forces withthe aim of achieving the goals.”

Terminology recognition

0

10

88.1

80

10.0

100（%）TBS Group Integrated Report 2021

11

Chapter 2

Long-Term Vision and Medium-Term Management Plan

TBS Group VISION 2030

Spreading content boundlessly
beyond the framework ofbroadcasting, creating memorable
experiences
d
n
pa
x
E

l
ita
Dig

Broadcasting
Business BusinessBroadcasting
Terrestrial, BS, CS,Terrestrial,
radio
BS, CS, radio

t
rket
arke
m
l
l ma
a
a
b
b
Glo
Glo

E
EDG

2020 2020

E

40%

EDGION2030
VIS

2030
ION
VIS

40%

d
an
p
Ex
l
ita
g
i
D

12

TBS Group Integrated Report 2021

2030
2030

6060
% %

Through content and with all stakeholders,the TBS Group will build a happy,
sustainable society where diverse values
are respected.

sting adcasting
Broadca Bro*Experience = Live entertainment and lifestyle*Experience = Live entertainment and lifestyle

The TBS Group seeks to achieve growth by expanding
businesses in growth areas and businesses other than broadcasting to 60% of consolidated net sales based on the EDGE
strategy for spreading created content.
At the same time, as the broadcasting business is a foundation for growth, we will continue looking to enhance its
value. Going forward, the broadcasting business will win further trust from stakeholders as a value we have built up over
the years, while serving as a hub for value co-creation thattranscends advertising media functions. Together with ourpartners, the business will also offer new value and seek tobolster our media power through data marketing.
The TBS Group will pursue a number of measures to offer “wonderful moments” to the Earth (E) on which we live,
and Society (S) in which we work, as a responsible company
we are using Governance (G) including media organizations
with public and social missions, as part of ESG management.
Through content and with all stakeholders, the TBS Groupwill build a happy, sustainable society where diverse values
are respected.
* EDGE: Expand Digital Global Experience

Achieving“a better tomorrow”

Terrestrial, BS, CS, radioe*ce*rienc ExperienepxENon-broadcasting businesses
Non-broadcasting businesses

The capacity to create content is the greatest asset of the TBS
Group. Lifestyles are becoming more diverse and the media
environment is changing rapidly, which includes the increasing importance of the internet. Amid these circumstances, inorder to honor people’s trust in us better than ever before,
the TBS Group will create excellent content that enriches
minds and lives, and will deliver this content beyond the traditional framework of broadcasting. Defining all things thatmove people’s hearts as content, the TBS Group aims to become a group of content providers that maximizes the valueof all those things.
Specifically, the TBS Group will bolster its creative capabilities by developing original intellectual property (IP).
Going a step further, the TBS Group will drive forward initiatives dubbed EDGE* as its strategy for spreading created
content boundlessly.
The TBS Group will develop digital content by strengthening streaming (Digital), pursue further breakthroughs inoverseas markets (Global), and concentrate its resources on
expanding the business of experiencing live entertainment
and lifestyles (Experience).

Broadcasting BusinessBusiness
Terrestrial, Broadcasting
BS, CS, radio

Businesses
in growth+Businesses
in growthareas areas+
Non-broadcasting
businesses
Non-broadcasting businesses

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

Create excellent content thatenriches minds and lives

Creating and disseminating content
around the world, beyond theframework of broadcasting

Further develop
original IP
Strengthen creative
capabilities• Deepen the unchanging value that istrust• Become a hub for value co-creation thattranscends advertising media

Emphasize original IP andstrengthen creative capabilities
Aim to transition from the previous
content production system based on
the broadcasting business to one thatdelivers content for all times of life

Seek to enhance the value ofthe broadcasting business

Expansion strategy that seeks
to maximize content value

D	Strengthen streaming anddigital content development
G	Pursue further breakthroughsin overseas markets
E	Expand the businessof experiencing live
entertainment and lifestyles• Bolster our media power through data
marketingSocial mission of media, and
ESG management
Environment
For the earth on which we live
SocialFor society and coworkers
GovernanceAs responsible companies
Offer “wonderful moments”

TBS Group Integrated Report 2021

13

Chapter 2

Long-Term Vision and Medium-Term Management Plan

TBS Group Medium-Term Management Plan 2023
“Focusing on recovery from thepandemic and sowing seeds for growth”

Three Phases for
the TBS Group VISION 2030 Period

Recovery from COVID-19,
and growth strategies
Boost non-prime-time
programming and improveinformation programming,
while growing a nextgeneration viewer andexpanding reachCore businesses

Growth strategies

Innovating
broadcasting

Implement EDGE
strategy■ Theme: Recovery and sowing
TBS Group Medium-Term Management Plan 2023 corresponds
to Phase 1 of a target period of TBS Group VISION 2030 (FY2021-2030), which has the theme “recovery and sowing.” This
involves recovering from the impact of COVID-19 and sowing
seeds for growth toward the goals set in TBS Group VISION
2030, while expanding revenues based on growth strategies.

■ Core businesses: “Innovating broadcasting”
The TBS Group will work on innovating broadcasting, a corebusiness for the 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 reachwhile positioning the new Family Core demographic (maleand female individuals age 4 years to 49) as a priority target
for winning next-generation viewers and rebuilding social
value. The TBS Group will also explain and propose media
value by strengthening data coordination.
Moreover, as a means to promote itself as a starting
point for influencing society, the TBS Group will carry out
large-scale projects oriented toward solving social problems
and chasing dreams, undertake initiatives beyond content
programming, and rebuild the value it provides based ontrust and market reach.
To improve efficiency and boost competitiveness among JNN
network affiliates, we will implement measures to strengthen ourmanagement infrastructure among all JNN network affiliates.

■ EDGE strategy for streaming content
As growth strategies, the TBS Group will first strengthen
streaming and develop content in the digital area to put into
tangible form the EDGE strategy for streaming 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 by increasing theuse of video streaming 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 in markets worldwide, and develop other businesses with overseas
partners in order to accelerate progress in overseas markets

14

TBS Group Integrated Report 2021

through alliance expansion and M&A efforts.
Taking an additional step in the Experience area, the TBS
Group will premiere the first long-run presentation in Asia ofHarry Potter and the Cursed Child to expand business ”to experience" live entertainment. In addition, the TBS Group will
advance initiatives, including original content development,
multi-use application, and the establishment of a TV studiowith 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 to make arecovery in revenues through StylingLife Group restructuring and intra-Group coordination, while also aiming to getback to growth quickly as the COVID-19 pandemic abates.
The TBS Group will also work to develop experience and value businesses in the intellectual training and education area.

2027

2024
Phase 2:Development and Growth(2024-2026)
2021

Nurture seeds sown in Phase 1 andestablish a growth base for 2030
Achieve new business growth

Phase 3:
Accelerate andMaintain Growth(2027-2030)
Conduct businesses ingrowth areas
Realize continuous Group
growth, and achieve VISION
2030 goals

Innovating broadcastingAs urgent issues during the period of thecurrent medium-term management plan, gain
next-generation viewers as part of innovating
broadcasting, gain next-generation viewers as part ofrebuilding social value in a way unique to TV, promoteCorethe optimal distribution and multiuse of production
businesses costs as part of rebuilding social value in a way
unique to TV, and strengthen JNN network affiliates■ Strengthening management infrastructure

Growthstrategies

To achieve VISION 2030 goals, give tangible
form to the EDGE strategy for distributing
content, and carry out measures tokickstart growth in the digital, overseas, live
entertainment, and lifestyle areas■ Strategic investment for growthand carrying out ESG management

For management infrastructure, in support of corporate
strategies, the TBS Group will continue to strengthen its corporate brand and reinforce organizations through Group reorganization.
Furthermore, for growth drivers, the TBS Group willleverage its competitive strengths and growth potential
through strategic investments and digital technologies, andenhance organizational strength through creative, challenge oriented human resources.
In carrying out ESG management that is uniquely TBS,the Group will communicate facts fairly and accurately anddisseminate reliable information as a means to fulfill its
social mission and responsibilities as a media group, whileworking to address social issues and position itself as a starting point for influencing society. The TBS Group will workwith various partners to achieve the SDGs by 2030.

Use growth strategies for recovering fromCOVID-19 to expand revenues and sow
the seeds for growth toward the goals set
in the VISION 2030

Continue offering new live
entertainment that will
become new pillars of thecompany, and preparing
festivities in Akasaka
Further energize
ESG-related actions andcommunications

2030

Phase 1:
Recovery and Sowing(2021-2023)■ Enhance creative capabilities, and develop and recruit digitally-capable human resources■ Leverage competitive strengths through technologies

Management
infrastructure■ Enhance the corporate brand and foster a sense of unity■ Establish a foundation for growth through Group reorganization■ Fulfill social mission and responsibilities as a media group■ Address environmental and social issues, and contribute to SDGs achievement■ Strengthen governance

ESG management

Growth investment

Shareholder return¥370 billion

More than ¥100 billion total over 3 years

Stable dividends will continue for¥18.5 billion

To achieve business innovation and medium- to longterm growth, leverage assets from a rising market valueof shares held long-term

3 years

Growth investment based on the EDGE
strategy for distributing content

as the minimum annual dividend

Quantitative targets
Net sales
Operating profit

Ratio of operating profit
to net sales

5.0%¥32.5 billion■ Quantitative targets

Simplified EBITDA*Based on the initiatives described above, the TBS Group set
consolidated net sales of ¥370 billion, consolidated operating
profit of ¥18.5 billion and a ratio of operating profit to net
sales of 5.0% as quantitative targets for FY2023 in the TBS
Group Medium-Term Management Plan 2023.

* Simplified EBITDA: Operating profit + depreciation¥30 per share- M&A to expand business and enhance the organizational capabilities of human resources, etc.
- IP investment and content that will serve as awellspring for greater earnings- Investment in the Akasaka Entertainment City Plan
Make large-scale investments that exceed projections in
the event that investment opportunities arise that will
facilitate a transformation of the TBS GroupTBS Group Integrated Report 2021

15

Chapter 2

Long-Term Vision and Medium-Term Management Plan

Message fromthe Head of Finance Strategy

Pick Up

Providing Experiences of Live Entertainment

The combined strengths of the TBS Group will make Akasaka
a place committed to people’s happiness and enjoyment,a place that provides them with wonderful “moments.”

Akasaka Entertainment City Plan

The Akasaka Entertainment City Plan combines TBS’s brand promise, “From each moment, a better tomorrow,” with
TBS Group Vision 2030, so that the combined strengths of the TBS Group will make Akasaka an area dedicated to people’s happiness and enjoyment, a place that provides them with wonderful “moments.” The three hallmarks of this development will be “REAL,”“DIVERSE,” and “SUSTAINABLE,” and they are part of a move toward asustainable society with a high level of social consciousness, implemented
Area to be redeveloped
together with production of the high-quality entertainment that TBS is
known for. TBS will make use of its store of knowledge about live enAkasaka Biz Tower
tertainment to create a theater that continues to transmit world-classcontent. The theater will be a multipurpose space, a hall that allows live
Sacas Plazadelivery of performances that bring wonderful “moments” to the world.
TBS Broadcast Center
AkasakaBLITZ
STUDIO(tentative)
The summer of 2022 will see the premiere of the long-running stage
production Harry Potter and the Cursed Child in celebration of the 70th
TBS Akasaka Act Theater
anniversary of TBS. In the fall, Akasaka BLITZ will be transformed from alive performance club into a broadcast studio that can also accommodate
an audience. Then, 2028 is the projected date for completing the redevelopment of the Akasaka 2-chome and 6-chome areas.

REAL

Transmitting realemotions andexperiences tothe world

DIVERSE

Fostering the
growth of a culture
and people withrespect for diversity

16

TBS Group Integrated Report 2021

SUSTAINABLE
Sharing a
sense of creatinga sustainable
society

We are sowing seeds with a sense ofurgency to achieve the Group’s vision of
itself in 10 years’ time
Toshiaki Kawai

Representative Director, TBS HOLDINGS, INC.
Executive Vice President & Board Director,
TOKYO BROADCASTING SYSTEM TELEVISION, INC.

Overview of TBS Group Medium-Term Management Plan 2020

Investing for future growth amid acceleratingchange in the environment
Under the Group Medium-Term Management Plan 2020
initiated in FY2018, we increased our terrestrial televisionviewer ratings in the Family Core demographic, achieved
the top results among commercial broadcasters for numberof views and sales of TVer, our video streaming service, andmaintained our top position in the radio ratings. We also
enjoyed a strong performance in the BS-TBS viewer ratingssurvey, winning the triple crown in both the individual andhousehold ratings for the daytime, early evening, and prime
time slots. Furthermore, the strength of our brand as “TBSfor drama” was also enhanced considerably over the three
years, which we believe has translated into the branding ofTBS as a whole.
Nevertheless, both consolidated net sales and operating
profit fell short of targets, impacted greatly by the gradual
downward trend in television advertising expenditure. Although the impact of COVID-19 was also a factor, the biggest
issue was that our management reforms did not keep pacewith the constantly changing environment.
As planned, we implemented investments of around¥50 billion. These investments, which included the Akasaka
Entertainment City Plan, digital technology, and IP strategy,
were aimed at medium- to long-term growth. Therefore, thebenefits from the investments were not apparent in report-

ed profits during the period. However, the effects, which
include group reorganization and dramatic improvements
in standardization and efficiency in terms of providing anenvironment in which it is easy to work, are greater than theinvestments. In addition, we promoted the introduction ofrenewable energy at our facilities, including the TBS Radiotransmission station, TBS Akasaka ACT Theater, and Akasaka
BLITZ. Midoriyama Studio, the home of our dramas, will shiftto effectively 100% renewable energy use during FY2021.

Expanding business in growth areas otherthan broadcasting to 60% of net sales overthe next 10 years
The most important message of TBS Group VISION 2030 inquantitative terms is expanding business in growth areas other than broadcasting from 40% of overall net sales to 60%. In
terms of the actual amounts, we envisage growth in net sales
from ¥130 billion now to around ¥330 billion, and throughour EDGE strategy, which is a multi-layered expansion in
the areas of digital (D), global (=overseas, G), and experience (=live entertainment and lifestyles, E), we aim to triple
net sales in the three areas of D, G, and E. This means thatbroadcasting business net sales will decline to 40% in relative
terms, but we plan to increase net sales in this business by
10% from ¥200 billion now to ¥220 billion.
We have positioned the TBS Group Medium-Term ManTBS Group Integrated Report 2021

17

Chapter 2

Long-Term Vision and Medium-Term Management Planagement Plan 2023 as the phase of recovery from the impact
of COVID-19 and sowing seeds for growth toward realizing
TBS Group VISION 2030. In the plan, the Group set consolidated net sales of ¥370 billion, operating profit of ¥18.5
billion, ratio of operating profit to net sales of 5.0%, andsimplified EBITDA of ¥32.5 billion as quantitative targets. In
the Media Content Business, we will expand the streaming
business while achieving a recovery in broadcasting income
and the live entertainment business. In the Lifestyle Businesssegment, we will work to achieve a recovery in results of the
StylingLife Group.

We will invest in growth utilizing funds fromthe sale of assets with the aim of expanding
profit over the medium- to long-term andenhancing capital efficiency
As for the balance sheet plan during the period, we have presented a three-year cash allocation plan to give an idea of
cash flow.
“Sales of assets, etc. ¥60.0 billion or more” included aspart of this is primarily intended to be sales of cross-heldshares. In the past three years, we have sold ¥71.8 billion of
our holdings. We are considering further sales of shares forinvestment if we develop any good projects that will translate into growth strategies.
Meanwhile, we are considering investments of ¥100
billion or more in the three growth areas of digital, global,
and experience to achieve medium- to long-term revenue
growth. In order to expand the digital area and overseas
business with a sense of urgency, we will invest in M&As,
capital expenditures, and acquisition of human resources.
We will enhance the value added of Akasaka and make it an
attractive place through the implementation of the Akasaka

Entertainment City Plan, thereby increasing real estate values as well as the brand value of TBS.
In addition, the Group borrowed working capital out ofsafety considerations due to the COVID-19 pandemic but isplanning to repay this borrowing as scheduled during theperiod of Medium-Term Management Plan. We have also incorporated the lower limit for shareholder returns into our
cash allocation.

Toward a stable and sustainable dividend policy
Regarding shareholder returns, since we did not record a
profit after the global financial crisis, we changed to a dividend policy linked to business performance, which was
the prevailing policy at the time, and set the payout ratioat 30% of consolidated net income. As business results recovered soon after, we continued to increase the dividend
until FY2018. In FY2019, we reduced the dividend in line with
our policy because there was no longer an upward trend inrevenue, excluding the effect from sales of cross-held shares.
However, this had a significant impact on shareholders, particularly individual shareholders from whom we received
complaints. The use of profit on the sale of shareholdings,
which we have been implementing since FY2018, as funds forinvestments in growth strategies is certainly one of the factors that has made it difficult to understand the relationshipbetween net income and dividends.
Although we are now in the process of achieving recovery
in business results from COVID-19, we have changed to a policyof stable and sustainable dividends with a minimum dividendof ¥30 per share in order to make dividends stable and ongoing. During the Medium-Term Management Plan period, we
will maintain a dividend of ¥30 per share and respond to any
significant increase in profit by paying a special dividend or ac-

Consolidated net sales, operating profit, and simplified EBITDA

quiring treasury stock. Going forward, we hope to increase thenumber of shareholders who back TBS, and we will continue
striving to be able to increase the lower limit for the dividend
during the next Medium-Term Management Plan.

management of the TBS Group, including takeover defense
measures (details on page 58), and we are also increasing theopportunities for dialogue with investors. In fact, we have
utilized opinions received in the course of engagement withinvestors in areas that range from our medium- and longterm strategies, sales of cross-held shares, and shareholder
returns to the publication of this Integrated Report, and wewill continue this approach in the future. We are also taking
proactive steps to create an even better framework for ourmanagement systems. In 2020, three of our nine directors
were independent outside directors, and we commenced
evaluation of the effectiveness of the Board of Directors.
We aspire to grow into a sustainable company while giving back to society through provision of unique value as amedia and entertainment company, in partnership with allof our stakeholders, including viewers, clients, employees,
staff and performers who create content, news sources, partner companies, local communities, and the global environment. I would like to request your ongoing understanding
and encouragement for TBS HOLDINGS, INC.

We will grow in partnership with all
stakeholders to enhance corporate value
Here I would like to explain our thinking on takeover defense
measures, which is one of the points at issue in our dialogue
with investors.
As a listed company, TBS has a responsibility to contribute to the development of the market economy, and, at thesame time, we believe we need to maintain our public nature
as a broadcasting station entrusted with radio waves, which
are finite, as well as our autonomy, diversity, and independence in order to uphold our impartiality as a news organization. In terms of our public nature, we have a social mission
to allocate human resources and equipment and continue
broadcasting as an “information lifeline” even without income in the event of the spread of infectious diseases such as
the recent COVID-19 or major disasters such as the Great East
Japan Earthquake. In terms of our independence as media,
although diminished by the growth of the internet, televisionand radio still have significant influence, and we must ensurethat we do not attempt to use broadcasting for the benefitof a particular idea or individual company only.
In accomplishing the aforementioned missions, we believe that people are important resources and that long-term
relationships of trust with performers, clients, and others arealso important, which is what leads to the enhancement ofcorporate value over the long term.
We are considering active incorporation of the opinions
of investors and other external parties with regard to theThree-Year Cash Allocation Plan

Approx. ¥180 billion or more
Approx.

Operating profit
Ratio to net sales
Simplified EBITDA(=operating profit + depreciation and amortization)

Ratio to net sales¥16 billion or more
Operatingcash flow

Approx.

¥24 billion

Approx.
¥70 billion
or moreApprox.

Net sales¥40 billion
Cash on hand
Approx.

¥50 billion(excluding working capital)

Sales of assets,
etc.
¥60 billion

Growth areas“EDGE”¥100 billion
or moreor moreSales of assets assume sales ofcross-held shares

18

TBS Group Integrated Report 2021

Proactively seize opportunities forinvestment in growth, and apply
funds from sales of assets to synergistic investments

Strengthen functions and increase
efficiency using new technologies,
such as cloud computing and AI

Secured working capital out of safety
considerations due to COVID-19
pandemic, but repayment will be
as scheduled

Stabilize dividends while setting
a lower limit
Flexibly consider acquisition oftreasury stock

TBS Group Integrated Report 2021

19

Chapter 2

Long-Term Vision and Medium-Term Management Plan

Financial and Non-Financial Highlights
Financial Highlights

Net sales

Non-Financial Highlights

E

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

355.3

361.9

366.3

325.6

（%）

(Tons)

8.0

24,000

6.0

18,000

4.0

12,000

20

19.8

240

15

5.6

160

10

80

5

2.0

6,000

0

0

0.0

0

320

/3
17
20

/3
18
20

/3
19
20

/3
20
20

Simplified EBITDA (operating profit + depreciation)

18.8
5.2

18.5
5.1

13.1
3.7

/3
17
20

/3
21
20

E

Recycling rate (Broadcast Center and Cultural Facilities Building)

Ratio to net sales(Billions of yen)

356.7

CO2 emissions (Broadcast Center and Cultural Facilities Building)

/3
18
20

/3
19
20

/3
20
20

10.8
3.3

/3
21
20

23,235

21,916

20,05472.3%

18,267(FY2020)

/3
17
20

/3
18
20

/3
19
20

/3
20
20

Bins for sorting and separating garbage are installed on each floorof Broadcast Center, and cleaning staff ensure further sorting andseparation of garbage after collection

/3
21
20

Percentage of male and female employees
taking childcare leaveS

Total assets/Net assets

24,123S

Percentage of female managers(TOKYO BROADCASTING SYSTEM TELEVISION, INC., as of February 1, 2021)■ Total assets ■ Total net assets(Billions of yen)

32

(Billions of yen)

33.4

33.6

33.4
27.9

24

25.5

821.7
720
480

8

240

0

0
/3
18
20

/3
19
20

/3
20
20

707.0
517.4

600.9

798.4
601.2

783.0

794.8

591.9

(Births from April 1, 2019 to March 31, 2020,

/3
18
20

/3
19
20

/3
20
20

/3
21
20

Free cash flows(cash flows from operating activities + cash flows from investing activities)■ Capital expenditures ■ Depreciation

24
16
8

14.1

13.6

14.3

13.9

8.9

21.5

14.0

13.6

12

1/3

0
/3
17
20

/3
18
20

G

Reports of serious incidents related to personal
information

0(FY2020)

60

20

Ratio of outside directors

27.3

26.4

18
18.8
13.0
10.6

G

(Billions of yen)

24

30.3

We are aiming to achieve at least 20% female managers by FY2024,
and are implementing training and corporate culture initiatives

The amount of childcare leave used by male employees ranges fromaround one week coinciding with the wife’s childbirth, with a growing
trend toward applications to take long-term leave of one to six months■ Outside directors ■ Inside directors

39.6(Billions of yen)

13.5%

employees who used childcare leave up to April 1, 2021)
/3
17
20

/3
21
20

Capital expenditures/Depreciation

32

Female

960

16

/3
17
20

100 %
Male 18.2%

1,100.2/3
19
20

TBS Group Integrated Report 2021

/3
20
20

/3
21
20

/3
17
20

/3
18
20

/3
19
20

/3
20
20

/3
21
20

From 2020, three of the nine members of the Board of Directors wereoutside directors

We ensure protection of personal information, including proprietary
development of personal information protection systems “hogwan”
and “Secure Mail Service” which we operate rigorously

TBS Group Integrated Report 2021

21

Chapter 3

Value Creation Story

TBS At a Glance
TBS will provide wonderful “moments” for everyone through content
and services that are loved through the ages and contribute to the realization of a sustainable society full of hope where diverse values arerespected.

We provide a diverse range of services that go beyond the traditionalframework of broadcasting
The TBS Group provides a diverse range of services from production and sale of video and audio software, to cultural businesses,
lifestyle businesses, and real estate leasing, in addition to the television and radio broadcasting business.

TBS HOLDINGS, INC.

TBS content gains wide support through a variety of media
In FY2020, TOKYO BROADCASTING SYSTEM TELEVISION, INC. gained the second ranked viewer ratings in the Family Core (maleand female individuals age 13 years to 59) demographic for both the golden time (19:00-22:00) and prime time (19:00-23:00) slots.
TBS RADIO, Inc. has maintained the top listener ratings for 19 years and 10 months in a row (as of April 2021). TBS ranked top out of
the five Tokyo television stations on the full-year number of views for free catch-up streaming, which includes the TVer streaming
service. The number of downloads of the Paravi subscription video streaming app exceeded 10 million. TBS content has gained highlevels of support in each media. We also deliver unique value in the lifestyle and real estate areas.

Media Content Business(Six core companies)(1) TOKYO BROADCASTINGSYSTEM TELEVISION, INC.
(2) TBS RADIO, Inc.
(3) BS-TBS, INC.
(4) TBS SPARKLE, Inc.
(5) TBS GLOWDIA, Inc.
(6) TBS ACT, INC.

(7) CS-TBS, INC.
(8) SEVEN-ARCS Co., Ltd.
(9) T
 C Entertainment
Incorporated(10) TBS International, Inc.
(11) T BS MEDIA RESEARCHINSTITUTE Inc.
(12) NICHION, INC.

FY2020 Family Core Demographic Viewer Ratings (male and female aged 13 – 59)

Centered on TOKYO BROADCASTING SYSTEM TELEVISION, INC.,
the heart of the TBS Group, the Media Content Business provides
high-quality audio and video content through all types of media,
including terrestrial, radio, and satellite broadcasting, in a comprehensive manner from upstream to downstream production.
The business handles an unparalleled range of media and also
has the infrastructure to adapt flexibly to globalization and therecent trend toward digital transformation (DX).
The Media Content Business also focuses on live entertainment,
including events and shows, and aims to constantly provide newforms of entertainment for all by bringing together the strengthsof the TBS Group.

Golden time (19:00-22:00),
prime time (19:00-23:00) slots 2nd
All dayTBS
Nippon TV
TV Asahi
TV Tokyo
Fuji Television

Lifestyle Business(13) StylingLife Holdings Inc.
(PLAZASTYLE COMPANY, BLC COMPANY)(14) CP Cosmetics Inc.
(15) LightUp Shopping Club Inc.

The Lifestyle Business focuses on businesses that provide customers
with new lifestyles by inextricably reaching into every consumer setting, such as retailing through PLAZASTYLE COMPANY, which operates
stores throughout Japan, mail-order sales, and the mainstay beauty
and wellness business. Another major feature of the Lifestyle Businessis that it independently holds a huge amount of data, such as customer
data, that can contribute to expanding TBS Group synergies.

③ 2.4

+0.4

*First time since the start of individual viewer
ratings surveys in 1997

Golden time

Prime time

Non-prime time

(19:00-22:00)(19:00-23:00)(6:00-19:00, 23:00-24:00)

② 4.5

+0.4

② 4.6

+0.4

③ 1.8

① 4.5

① 7.2

① 6.9

① 3.8

⑥ 0.9

⑥ 2.4

⑥ 2.2

⑥ 0.5

③ 2.4

④ 4.0

② 2.8

NHK

⑤ 1.4

PUT

15.9

② 4.5
⑤ 3.3
28.0

④ 4.3
③ 4.5
⑤ 2.8
27.3

TBS Radio Top listener ratings for 19 years, 10 months in a row (as of April 2021)
BS-TBS	
Triple crown for daytime, golden time (19:00-22:00), and prime time
(19:00-23:00) slots (both individual and household)Free Catch-up Streaming

+0.4

③ 1.8

② 2.4
⑤ 1.0

12.6
[March 30, 2020 to March 29,
2021: weekly basis]
Survey by Video Research, Ltd.:
Kanto region

App Downloads

Real Estate and Other Business(16) Akasaka Heat
Supply, Co., Ltd.
(17) TBS Kikaku Co., Ltd.
(18) TBS Sunwork, Inc.

Net sales andoperating profit
by segment(19) TBS HEXA. Inc.
(20) M idoriyama Studio
City, Inc.

The Real Estate and Other Business is mainly engaged in the operationand management of the real estate owned by the TBS Group, with
TBS Broadcast Center and Akasaka Biz Tower heading the list. It is also
involved in urban development projects around the Akasaka area toremake Akasaka into a city offering “the greatest emotional experiences in the world.”¥15.9 billion
2021/3¥55.9 billion¥2.8 billion

Media Content Business
Lifestyle Business
Real Estate andOther Business¥0.2 billion¥253.7 billion

Note: Net sales (outer circle) is from sales to external customers.
Operating profit (inner circle) is segment profit.

22

TBS Group Integrated Report 2021

¥7.6 billion■ Consolidated net sales¥325.6 billion■ Consolidated operating profit¥10.8 billion

Number ofviews

of five Tokyo stationsFirst out
(FY2020)

Net sales

UpMonthly average 32.85 million views(up 42% year on year)

46% year on year

[Number of stores of each StylingLife Group company*]
PLAZA.......................... 122 storesOver 10 million(Approx, double year on year)[Real Estate and Other Business]
Real estate operated by the TBS GroupCP Salon....................... 1,240 stores
LightUp........................ 4 stores
BCL............................... 28 stores*As of March 2021

TBS Broadcast Center/Akasaka Biz Tower/
Akasaka The Residence/TBS Akasaka ACT Theater/
The Hexagon/Midoriyama Studio City/Kinuta Studio/
TBS Housing, etc.

TBS Group Integrated Report 2021

23

Chapter 3

Value Creation Story

TBS’s Growth Trajectory

2020

Ever since its founding, the TBS Group has maintained broadcasting as its core business while also expanding into awide range of other businesses, such as films, stage productions, real estate, and retail. Through its varied content
services, TBS Group has provided viewers, listeners, and customers with wonderful “moments.”
One trait that TBS Group has placed a high priority on since
its founding in 1951, down to the present as it approaches its
seventieth year, is its enthusiasm for delivering high-quality
entertainment. Each one of us has worked to bring people
emotionally involving experiences and the truths that lie hidden in their everyday lives. As a broadcasting company, TBS
maintains television and radio broadcasting as the core of its
business, but it has also expanded into films, live entertain-

ment, real estate, retail, and a wide range of other businesses. In response to the proliferation of channels and digital TV,
it is also emphasizing its commercial video streaming service
TVer and its subscription video streaming service Paravi. In
the summer of 2022, it will present the worldwide smash hit
stage production of Harry Potter and the Cursed Child in a
specially equipped theater in Akasaka.

Media Content Business
Lifestyle Business

TBS Akasaka ACT Theater
A new, fully equipped entertainment
theater in Akasaka

JNN News
The first news network in commercial
broadcasting

JOKR-TV
Founded in 1955 as a television station,
it became the only station in Tokyo tooffer both radio and television services

2000
Harry Potter and the Cursed Child
This stage production will make its Asianpremiere in summer 2022

1990

1980

Real Estate and Other Business

1950

2010

Popular worldwide, it has been a major
hit in the United States under the title
American Ninja Warrior

1970(developing experience and value businesses)
ブランドカラー

特色 : PANTONE 632 C

ブランドカラー特Internet streaming systems

色 : PANTONE 7458 C

分解色 : C 74% M 29% Y23% K0%

分解色 : C 57% M 19% Y 20% K 0%

R G B : R 55 G 154 B 188

R G B : R 117 G 179 B 200(proactive investment and joint ventures)

Lifestyles (growth through attracting young customers)
Akasaka Entertainment City Plan
succession of famous andLive entertainment ( atalked-about
productions )Takeshi’s Castle

1960

Intellectual training and education

SASUKE

Takeshi’s Castle is broadcast in 159
countries and regions around the world

Communication Satellite and Broadcast Satellite(24-hour news on CS, and the most popular set of programs on BS)
Akasaka into a city that
Real estate ( remaking
provides wonderful “moments” )of programming
Overseas expansion ( sales
and program formats )Television (TBS’s core business of media content)“starting point,” with the greatest
Radio ( TBS’s)
number of listeners in the Kanto area

Times and Environmental Changes▶ The 1950s

The early days of broadcastingFirst radio, then television

New Businesses
1951: TBS radio goes on the air
1955: TBS television goes on the air▶ The 1960s▶ The 1970s▶ The 1980s▶ The 1990s▶ The 2000s▶ The 2010s▶ The 2020s

The period of rapid economic
growthTelevision becomes the principal form of media

The oil crisis, color TV becomes
available
TBS Entertainment enjoys aseries of successes

Video recording technology
becomes widespread
Finding our way in the era of new
media

Evolving live broadcast technology:“from outer space” and “from thebattlefield”
Ventures into non-broadcast entertainment

Multiple channels via satellite anddigital terrestrial broadcasting
Moving into lifestyle businesses

The spread of the internet
A shift to “digital first”
TBS launches a video streaming
business

TBS expands into businesses
beyond broadcastingIntellectual training and education, Akasaka Entertainment City
Plan

1995: Akasaka Musical Theater (later renamed TBS Akasaka ACT Theater) opens

2015: Participation in the commercial video streaming system TVer

1996: Live performance venue Akasaka BLITZ opens

2017: IHI Stage Around Tokyo opens

1998: News via cable, News Bird, goes on the air

2018: The subscription video streaming service Paravi starts

2000: Satellite broadcasting goes on the air BS-i (renamed as BS-TBS, INC.)

2020: Establishment of the next-generation educational development company,
Schop2008: Akasaka Biz Tower opens
2008: StylingLife Holdings Inc. becomes a subsidiary

24

TBS Group Integrated Report 2021

2028: P rojected completion of Akasaka Entertainment City in the Akasaka
2-chome and 6-chome areas

TBS Group Integrated Report 2021

25

Chapter 3

Value Creation Story

The Growth Trajectory of Our Content
Most of TBS’s collections of content (programs, video streaming, films, and live performances) are made with aneye toward taking a close look at society and taking a leading role in this era. TBS wants its customers to be moved
and comforted by its content and to find hints about the future while enjoying wonderful “moments.”

3
2021

Special Programming

TBS’s content, including its dramas, has given rise to words
and expressions that became popular with the generalpublic, including such as juugosai no haha “fifteen-year-old
mother” from Mr. Kimpachi in Class 3B, “barrier free” fromBeautiful Life, arafoo an abbreviation of the program title Around 40, baigaeshi “paying back double” from Naoki
Hanzawa, and muzukyun :being desperately attracted tosomeone and not knowing what to do about it” from The
Full-Time Wife Escapist. By capturing the mood of society
and portraying as yet unexposed problems, TBS’s content

arouses viewers’ sympathies on a wide range of issues andserves as a starting point for influencing society. TBS does
not limit itself to ephemeral entertainment but provides acollection of programming that touches people’s hearts, remains with them a long time, and sometimes even influences their lives. TBS’s content creators are allying themselveswith many partners to produce new works, believing thatthe combined wonderful “moments” that people experience will affect the way in which they create a better tomorrow.

Drama

Relentlessness is
Found Everywhere

1958-

1998

4

2
Mr. Chikushi, a Japanese journalist, invited then-US President Clinton to thestudio during his visit to Japan and had
him engage in dialogue with Japanesecitizens.

Variety
Drama

Come On! It’s 8PM

1969

Drama

I’d Rather Be a
Shellfish

1990

1

Tetsuya Chikushi News23
President Clinton Special

NAOKI HANZAWA

Drama

1 The Full-Time Wife Escapist New Year’s Specialin January 2021
2 Dragon Sakura, on Sunday Theater program
3 The Tuesday drama Why I Dress Up for Love
4 The Friday drama How to Get a Divorce for the
Whole Family

2013This soap opera portrays the everyday
life of a family and has been a favorite of
the Japanese people for many years.

1958
The gold standard for live variety show
broadcasts, it charted a new course with
its use of a revolving stage in its wildly
creative comedy sketches.

Special Programming

A project to Commemorate the 40th
Anniversary of TBS’s Founding

Correspondent Akiyama,
the first Japanese Personin Space-2021

A major hit drama that earned a 44.1%
viewer share. The recurring line “I will
pay them back double” has become awatchword among workers across Japan.

1990

Music ProgramThis drama commemorates Japanese citizens who were punished as Class C war
criminals and asks questions about war
and peace.

The Best Ten

Reportage

NewScope

Sending the first Japanese person into
space was a massive project accomplished with the cooperation of theSoviet Space Agency.

1962
This program presents songs in various
genres, ranked by sales. It has served as
an innovative model for the music programs that came after it.

The first news program in Japan to employ newscasters instead of announcers,
it continues to provide cutting-edge
reportage.

26

TBS Group Integrated Report 2021

Overseas Sales (Programs and Formats)

1978

1990-

TBS has been selling its content overseas for more than sixty
years. In addition to selling the dramas, anime, and films thatit has produced, TBS has also been a world pioneer in “format sales,” that is, selling program concepts and production
expertise. In recent years, it has expanded its activities into
multimedia uses of its Intellectual Property and joint production and streaming projects with companies overseas.
TBS has produced many programs that have become
worldwide hits, including Happy Family Plan, Waku Waku
Animal Land, and K-ON. Since its premiere in 1987, Takeshi’sCastle has been shown in 159 countries and regions. In 2003,
TBS began marketing SASUKE/Ninja Warrior overseas, and it
is now enjoyed by viewers in 165 countries and regions. In
particular, the locally produced U.S. version, American Ninja
Warrior, has been a flagship program for the American terrestrial broadcaster NBC, broadcast during primetime since2009, and continuing to attract fans.
In addition to these programs, TBS is marketing morethan 200 different products in the United States online andthrough a network of brick-and-mortar shops. In the United Kingdom, it has been diversifying its activities by going
into businesses such as theme parks in more than ten British
cities.

The American version of SASUKE
American Ninja Warrior

Takeshi’s Castle Thailand

TBS Group Integrated Report 2021

27

Chapter 3

Value Creation Story

Strengths and Business Model

Content and Platforms

The value creation of the TBS Group consists of “making” and “delivering” wonderful “moments.”
By “sharing” our created content with stakeholders, we aim to gain various insights to achieve growth andfurther creation of value.

TBS is creating a diverse array of content and services that go far beyond the framework of broadcasting.
Our diverse platforms deliver our content and services to all.

The “creativity” that we have developed and passed down
through our television and radio production is the origin of
our strengths. By “making” and “delivering” high-quality
content that reflects the times and society, or that focuseson social issues that are ahead of the times, we have gained
the empathy of many people and built up our own uniquevalue. Today, the content we produce is no longer limited tobroadcasting, but has expanded to include online stream-

For TBS, which came into being as a broadcasting station,“content” was originally “programs” which were delivered
to viewers, listeners, and customers via terrestrial broadcasting. TBS has delivered “moments that move the heart”
through such programs as dramas, variety shows, news,
sports, and anime, and we have expanded our business andservices with the times. We have launched businesses in satellite broadcasting, movies, theater, musicals, live music, realestate, retail, and virtual reality/extended reality (VR/XR), as
well as taking on new challenges in intellectual training anding, movies, theater, retail, education, and real estate, andwe are continuing to create new value. We will aim for further “growth” toward being a sustainable corporate groupby delivering wonderful “moments” in Japan and overseas,“sharing” them with viewers, listeners, and customers, andgaining their “trust” through our powerful “reach” using diverse platforms including broadcasting, theaters, and stores.

Our Business Model

From each moment, a better tomorrow.

Main Content and Platforms

最高の “時”

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

li
De

ve

r t hr o u g h pla

t fo

rm

•Performance contentte co nte n

Creat

w it h s t a ke h

old
e

Trust

rs

accumulated byobserving society
and the times

arethrough diverse platforms,
including broadcasting,theater, and stores•Program formats•Mangaand music

テレビ 番 組 ・•Intellectual
ラジ オ 番training
組 and education(SCHOP Inc., etc.)

映画 ・ 演劇 ・ 音楽公演

•Household goods, Apparel etc.

LifestyleBusiness

マ ン ガ •Cosmetics,
・ I P Quasi-drugs etc.
•Character licenses

独自開発
技術
aesthetic care etc.
•Facial•Building leasing

多 様 な プ ラ ットフォ
condominiums•Residentialーム

Grow wi t h so c i et y

平和 ・ 自由 ・人権•Radio broadcast

多様な価 値•Web streaming platforms

Real Estate andOther Business•Theaters(TBS Akasaka ACT Theater, IHI Stage Around Tokyo, etc.)

コ ン テンツ intellectual property,•Patents,Shof content that ispassed down andrefined throughthe generations•Terrestrial & satellite broadcast•Recorded media (DVD/BD etc.)

Media Content
Business

Reach

Platform(Movies, theater, musicals, live music, etc.)s

Creation

明日のeducation, manga, and more. The value running through allof these business domains is our desire to deliver wonderful“moments” that move the heart, and we consider everything
we create through our business activities to be content in the
broadest sense of the word.
Our diverse platforms support this content. The main
platforms for the content of TBS include the finite airwaves
entrusted to us by the public, movie theaters and theaters,
online streaming, real estate and stores, and the Akasaka Entertainment City Plan.

•Studios, parking lots

地上波放 送 ・ 衛星放 送•Overseas broadcast & streaming
company

公正 ・ 正確

環 境 保 護 と社

•Stores (TBS Store, THE MARKET, etc.)

知育教育•Licensed Retailers•Akasaka Sacas•Stores (PLAZA VECUA Honey)•Wholesaling (Domestic drug stores)•Licensed retailers (CP Salon)

環境 ・ 社会へ•E-Commerce & Catalog sales•Overseas general trade•Akasaka Biz Tower,
The Hexagon Building, etc.
•Akasaka The Residence•Midoriyama Studio, Kinuta Studio•Heating & cooling, electricity

インターネット
28

TBS Group Integrated Report 2021

劇場 ・ 店舗 ・ 各種媒体

TBS Group Integrated Report 2021

29

Chapter 3

Value Creation Story

Value Creation Process

The TBS Group will create content and services that are loved
by people around the world throughout the ages and contribute to the realization of a society full of hope in which
diverse values are respected.
The driving force behind our value creation is making theutmost effort so that people connect with TBS content andservices for the longer “moments” of the “disposable time”
they are able to spend freely during their lives. We create“high-quality entertainment” and “information lifelines”

to support life and living in collaboration with our many
partners and achieve “reach” through our diverse and extensive range of platforms, including the airwaves, theater,and stores. It is our aspiration to grow TBS and contributeto making “a better tomorrow” by enabling more viewers,
listeners, and customers to spend “wonderful moments” andbuilding up “trust” by responding to feedback with sincerity.

A bettertomorrow

Wonderful“moments”

Six Capitals
Human Capitalli
De

Outstanding people to create
the wonderful “moments”

vert hr o u g h plat for m

A society where peace, freedom, and human rights are protected
Respect for diverse valuessCommunication of fair and accurate information

Intellectual CapitalSocial and
Relationship Capital

Natural Capital
Promotion of green energy

Trustaccumulated byobserving society
and the times

Gro
w wi t h so c i et yrs

A starting point
for influencing
societyReachthrough diverse platforms,
including broadcasting,theater, and stores

Protection of the environment and solution of social issues

Content
Enhancement of intellectual training and education
Dramas, variety shows, and news
Sports and events

Environmental and Social Impact

Movies, theater, and musical performancesdeFinancial Capitale co nte n

Sites that create content

Creationof content that ispassed down andrefined throughthe generations

Creat

Collaboration with partners

w it h s t a ke h o lManufactured Capital

are

t

Sh

Content and proprietary
technologies

Manga, intellectual property, and proprietary technologies

Diverse Platforms
Terrestrial and satellite broadcasting
Internet
Theaters, stores, and various media

INPUT

30

TBS Group Integrated Report 2021

BUSINESS MODELOUTPUTOUTCOMETBS Group Integrated Report 2021

31

Chapter 4

Business-Specific Strategies

Business Outline

Net Sales &Operating Profit
by Segment

2024/3

Media Content Business

TBS Group does business across three segments.
The Media Content Business is the group’s primary line, accompanied the Lifestyle Business aimed at supporting daily life, and the Real Estate and Other Business that generates stable profits.
Building on these three linked pillars, TBS seeks to strike an optimum balance for both growth and stability.

Business segment

Media Content
Business

P.34

LifestyleBusiness

P.36

Business outline
The Media Content Business is the most profitable segment of theGroup, which is built around six core companies: TOKYO BROADCASTING SYSTEM TELEVISION, INC., the nucleus of the TBS Group; TBS
RADIO, Inc. and BS-TBS, INC., the core broadcasting businesses; TBSSPARKLE, Inc. and TBS GLOWDIA, Inc., which comprise the Group’s
program production, and audiovisual and culture businesses; and TBS
ACT, INC., which handles technical, art and computer graphics related
work.
While we grow our primary broadcasting business value, we will
also focus on the three growth areas of streaming business, overseas
business, and live entertainment to achieve the goals of TBS GroupVISION 2030 and further strengthen profitability and drive the performance of the entire TBS Group.
We are also serving as content provider in the Akasaka Entertainment City Plan to help provide wonderful “moments” to everyone.

The StylingLife Group is developing a business based on “demand
creation” market development which develops new needs in themarket, centered around PLAZASTYLE COMPANY (retail household
goods) and BCL COMPANY (cosmetics development, production, andsales) along with LightUp Shopping Club Inc. (mail-order retail) and
CP Cosmetics Inc. (beauty salon business). We aim to keep developing
and providing products and services with superior profitability in our
main field of Beauty & Wellness by taking advantage of our uniqueintegrated manufacturing and sales approach, which combines thedevelopment and manufacture of products with a broad distribution
network that includes specialty stores, mass merchandisers, beautysalons, and mail order.

￥325.6

Lifestyle Businessbillion￥10.8

Real Estate andOther BusinessbillionNote: Net sales (outer circle)
are from sales to outside clients
Operating profit (inner
circle)Content Business built on astable operating base provided
by the real estate businessThis segment covers all the business involving real estate management, such as TBS Broadcast Center, Akasaka Sacas, and Midoriyama
Studio City.
TBS is also working on urban development to help turn Akasaka
into “the city offering the greatest emotional experiences in theworld” with the Akasaka Entertainment City Plan.

billionEstablish a foundation for new growth by
fostering growth from seeds sown earlier, as
well as achieving new business development• Television and radio content(Dramas, variety shows, news, sports, anime, etc.)• Performance content(Movies, theater, musicals, live music, etc.)• Program formats

￥550

20XX
billion￥38.5
billionFurther content expansion andbusiness acceleration in eachgrowth area

Primary KPIContent

Platform• Terrestrial & satellite broadcast• Radio broadcast• Web streaming platforms• Recorded media (DVD/BD etc.)• Terrestrial broadcast ratings• Viewer ratings• Number of videos distributed• Radio listener ratings•T heaters(TBS Akasaka ACT Theater, IHI Stage Around Tokyo, etc.)• Manga•P atents, intellectual property, andmusic• Intellectual training and education(SCHOP Inc., etc.)• Overseas broadcast & streaming company• Number of CS subscribers• Physical stores (TBS Store, THE MARKET, etc.)• Number of visitors• Licensed Retailers• Akasaka Sacas• Box office revenue• Number of purchasers &Unit purchase priceContent• Household goods, Apparel etc.

LifestyleBusiness• Cosmetics, Quasi-drugs etc.

Platform• Facial aesthetic care etc.

• Customer base

• Physical stores (PLAZA, VECUA Honey)• Shops, mail order membership,
membership base

• Wholesale (Domestic drug stores)• Number of shops (retailers,
wholesale customers, etc.)• Number of licensed beautysalons• Licensed retailers (CP Salon)• Character licenses• E-Commerce & Catalog sales• Number of beauty salons• Overseas general trade• Ratio of overseas sales (BCL)• Ratio of operating profit to net
sales

Content

Real Estate andOther Business￥370
billion
20XX￥18.5

Main content and platforms

Media
Content
Business

2030/32021/3

Real Estate
and OtherBusiness

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

• Capacity rate

• Residential condominiums• Akasaka The Residence• Occupancy rate

• Studios, parking lots

• Midoriyama Studio, Kinuta Studio• Renewable energy rate

• Heating & cooling, electricity• CO2 reduction rate

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TBS Group Integrated Report 2021

33

Chapter 4

Business-Specific Strategies

Offering timelessand beloved content
and services to people
all over the world

Media
Content
Business■ Segment Strengths and Issues

Strengths • L argest reach in the media industry• Content production and comprehensive promotion capabilities cultivated over years•C ompany owned theaters

Risks• F ormat sales expertise

Dependence on terrestrial TV advertising revenue and domestic economic fluctuations
Television advertising revenue accounts for a large percentage of Group revenue, but it is strongly linked to advertising
company performance and the domestic economy, and so issusceptible to sharp downward trending.

Issues •D ependence on advertising income in terrestrial TV•C ontraction of the TV advertising market■ Growth Trajectory and Overview for FY2020

Growth trajectory • As a broadcaster built around a core of television and radio, where
television remains a media king, the company has been deliveringhigh-quality content to viewers through a variety of platforms•With widespread internet adoption, there has been a shift to “digitalfirst” broadcasting along with terrestrial and satellite broadcasting• Our comprehensive production capabilities allow us to offer entertainment through not only audiovisual content but on the live
stage as well
• Started the subscription video streaming service Paravi (from April
2018)

Operating profit(Billions of yen)

位入ル）(Billions of yen)300

20,000

20

250
15

200

15,000150

10,000

10

100

5,000

5

50

0

0

34

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0Intermedia competition and content acquisition
As we shift from broadcasting to streaming, the number ofcompetitor services has increased and competition intensified, and the demand for quality content has led to greater
competition in content acquisition.
Film and event businessDespite initial profitability assessments before any decisions
on planning, production, and investment, there is a risk thatfunds might become uncollectable due to issues with audience attraction or merchandising.
Copyrights and other intellectual property rights
Many people, like original authors, scriptwriters, and performers are bound up with copyright and adjacent intellectual rights. If the appropriate measures are not taken whendeveloping multi-use products, there is a risk that broadcast-• IHI Stage Around Tokyo (From March 2017)■ Growth Strategies• S ASUKE: Developed in 165 nations around the world

Opportunities

Overview for FY2020 • 2020 advertising expenditures in Japan(calendar year, as per Dentsu)- Total advertising expenditures in Japan: ¥6,159.4 billion (-11.2% YoY)
- Terrestrial TV advertising expenditures: ¥1,538.6 billion (-11.3% YoY)
- Internet advertising expenditures: ¥2,229 billion (+5.9% YoY)
• Spot sales revenues decrease due to contraction of spot advertising market- Spot sales revenues: ¥69.8 billion (-11.9% YoY)
- Kanto area advertising broadcast decrease: -13.6% YoY- Share among 5 stations: 19.7% (up 0.4 points YoY)

• Strong performance in streaming and shopping businesses due to home nesting demand-C ontent revenue: ¥15.8 billion (+45.7% YoY)
• Free catch-up streaming: First of the five Tokyo stations with
32.85 million monthly views- Licensing business revenue: ¥2.2 billion (+76.8% YoY)

■ Market Overview• TBS Group content strength concentrated through Group reorganization

Net sales- T ime sales revenues: ¥78.4 billion (-10.0% YoY)
- E vent & box-office revenue: ¥2.6 billion (-63.2% YoY)

• Information reliability in the midst of information overload•E xtensive program video materials & archives

Media Content Business
Net Sales and Operating Profit• Cancellation or reduction of sporting and live events dueto the COVID-19 pandemic

ing and distribution could be stopped or that liability fordamages could arise.
Capital expenditures
In addition to maintaining and updating our broadcasting
infrastructure, the expansion of digital media will require
investment in new technologies, but those additional costs
may not be commensurate with revenues and so may not be
fully recovered.
Technology, systems, security
We are updating and renovating core systems in the terrestrial and satellite broadcasting business, developing systems
in the video streaming business, and responding to new technologies such as 5G, but we may need to reinvest more thaninitially planned in order to respond to the speed of technological innovation and changes in consumer needs.
In addition, although we have taken security measuresagainst the recently increasing precision and sophisticationof cyber-attacks, there is a risk that even more significant
investment and costs for response and countermeasures
may be required in the event of new, even stronger security
threats, or if any risk such as a personal information breachis exposed.

• Development 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

Issuesneeding
addressing• Enhancing and expanding content• Platform diversification• Innovation acceleration• Responsibilities as a broadcaster• Staff education & workstyle improvements• Human resources investment & organizational reform• Growth strategy investment & R&D

As seen in
TBS Group
VISION 2030

• Growth in video streaming business and earnings expansion• Business development through XR content, etc.
• Content creation for global distribution• Taking live entertainment at Akasaka Sacas to the next stage• Expanding broadcasting business in existing regions• Increasing value of broadcast business• Growing Intellectual training and education business

TBS Group Integrated Report 2021

35

Chapter 4

Business-Specific Strategies

Bringing customers
a more comfortable,
more individual
lifestyleLifestyleBusiness■ Segment Strengths and Issues

Strengths • Leveraging integrated manufacturing and sales for improved profitability- Leveraging BCL’s development and manufacturing strengths to introduce
private brand products (retail business)- Develop products using retail business data (cosmetics business)■ Market Overview

Risks
Response to changes in demographics and lifestyle
As Japan’s population ages and decreases, and domestic lifestyles change, resulting impacts on product development andsales could impede Group growth, even as it responds withreinforced expansion into overseas markets.

•T arget Generation Z by leveraging PLAZA’s name recognition

Issues •Enhance digital functions for emergency situations, such as the
COVID-19 pandemic- Encourage shop customers to adopt e-commerce, and offer greater supplementary service to regions with no shops- Maintain customer contact through reinforced web and social media presence• Compensate for rural gaps in the currently urban-focused networkof directly managed shops- Promote franchise (FC) business•A ccelerate overseas business to reduce Japanese business focus■ Growth Trajectory and Overview for FY2020

Growth Trajectory • Retail Business: PLAZASTYLE COMPANY, which operates the general merchandise retail store PLAZA, has seen sales growth driven inpart by an increase in young female customer numbers and strong
sales in the cosmetics field.

Lifestyle Business
Net Sales and Operating Profit
Net sales

位入ル）

20,000Operating profit(Billions of yen)(Billions of yen)

75

8

60

15,000

645

10,000

4

30

5,000

2

15

0

0

36

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22 )20 ctedje(Pro0• Cosmetics Business: BCL COMPANY which develops, manufactures,and sells cosmetics generated significant sales and profits aroundthe major hit “Saborino,” which created demand in the new market for morning face masks.

Overview for FY2020 • The StylingLife Group faced difficult market conditions due to temporary closures and shortened business hours in response to emergency declarations and other factors related to the COVID-19 pandemic, as well as a significant trend towards a stop in human traffic
because of telework and remote classes.
• Under these circumstances, LightUp Shopping Club Inc. (mail-orderretail) and CP Cosmetics Inc. (beauty salon business), both of whichtarget the Group’s membership-style customer base segment, performed well. LightUp Shopping Club Inc., in particular, successfully
captured consumers’ home nesting demand and achieved a significant increase in sales and profits over the previous year, mainly inthe food and household goods fields.

■ Growth Strategies

Response to increased frequency and severity of disasters
and increase in unseasonal weather
We can assume that future disasters like earthquakes, typhoons, and new pandemics may halt production, logistics,
or operations, and although we have countermeasures inplace, they could have a significant impact on our financial
position and business performance.

Opportunities• Respond to changes in consumer mindset or behavior- Strengthen targeting for younger demographic, which has increasing demand for cosmetics, by integrating production and sales- Expand customer contact opportunity and time through enhanced
coordination between retail shops and web/social media presenceIssuesneeding
addressing• Early recovery into a growth trajectory
after the COVID-19 pandemic• Recreating profitability through
PLAZASTYLE COMPANY restructuring• Expanding highly profitable fields (beauty& wellness)• Strengthening proposals to major distributors in the reorganized drugstore market• Response to market changes- Life Post-/With-COVID: Enhanced mail-order and regional (FC) development- Reorganized drugstore market: Faster proposals to major distributors

As seen in
TBS Group
VISION 2030

• Expansion of “lifestyle proposal” style business: food, clothing, home, and beauty• Accelerate digital (web/social media/e-commerce) measures• Identify and nurture “seeds” within the group• Increase brand value• Strengthen overseas development (production & sales)• Establish alliances outside the group

StylingLife Holdings Group Organization

StylingLife Holdings Inc.
Number of shops

StylingLife Holdings Inc.
Group Management Platform

PLAZASTYLE COMPANYBCL COMPANY

General merchandise retailsales business

Beauty & wellness businessDirect-managed retail household
goods shops

Development, manufacture and salesof cosmetics and quasi-drugs, etc.

Franchise business, licensing business

Manufacture and sale of cosmetic
tools, hairdressing equipment, andscientific equipment

CP Cosmetics

LightUp Shopping Club Inc.

Beauty & wellness business

Mail order business

Development, manufacture and sales of cosmetics and quasi-drugs, etc.

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

Manufacture and sale of cosmetic tools, hairdressing equipment, and scientific equipment

PLAZA

CP Salon

LightUp

122

1,240

4

BCL

(VECUA・ROA)

28

PLAZA PASS

PLAZA
Members

PLAZA
App

4.16million

3.5million

105％ YoY

186％ YoY

Note: All figures are current as of the end of March 2021; PLAZA App
number is the total number of downloads.

TBS Group Integrated Report 2021

37

Chapter 4

Business-Specific Strategies

TopicsReal Estate
and OtherBusiness

Transforming Akasaka
to provide wonderful“moments” to every
visitor■ Segment Strengths and Issues

Strengths •P roperty owned in the Akasaka area, including Akasaka Biz Tower•A chieving profit generation from stable tenantsIssues 

The Group is seeing a variety of seeds sprouting that explore and usher in the TBS Future Vision.
They are creating a vision of TBS that pursues content to appeal to a wide, global audience;a TBS which nurtures practical creativity in the children who will shape our future;
and a TBS which embodies the group’s inherent spirit of challenge. Here, we introduce three examples.

Topic

1

Signing a strategic partnership agreement with
Korea’s CJ ENM

CJ ENM is South Korea’s largest content creator. It invested in and distributed the film
Parasite, winner of numerous awards at the Cannes Film Festival and US Academy
Awards, and it is parent company to Studio Dragon, which created the popular Netflix
series Crash Landing on You.
Moving forward, CJ ENM and TBS Group’s top creators will collaborate in developing and producing television dramas, variety shows, movies, and other content targeting the global market, and the two companies will cooperate in fields where bothhave strengths, such as live entertainment (music, theater, etc.), anime, and manga. In
addition, they will work together to promote multifaceted initiatives such as mutual
exchange of creators.

© CultureDepot.
© STUDIO DRAGON Corp. ALL RIGHTS• L imits to future growth due to limited tenant capacity• Significant impact from external environmental changes, such as
the decline in occupancy due to the slump in the restaurant business and the trend toward office-less work due to the pandemic■ Growth Trajectory and Overview for FY2020

Growth Trajectory • The company has been generating stable profits in the real estateleasing business• We have continued acquiring land and buildings in the Akasaka
area, including The Hexagon• We established TBS HEXA Inc. to promote a stronger real estate
operation and management system

Overview for FY2020 • Decrease in tenant occupancy and rent income due to the COVID-19
pandemic• Further capital expenditures in relation to the Akasaka Entertainment City Plan

■ Market Overview

Topic

2

Fostering Practical Creativity: Fulfilling
intellectual training and education businesslike Schop School

TBS established Schop, a next-generation education development company,in collaboration with Dentsu and Edusol.
At Schop School, children not only learn, but also develop the essential
skills to survive and thrive in an uncertain society through understanding
the essence of issues and how they work, and then letting their imaginations run to explore new ideas.
This school will bring in a growth cycle for of “practical creativity”
through our uniquely designed methods. Those methods are based on both educational theories from around the world, and the efforts of creators with the real-world
achievements and knowledge, who are engaged in socially-relevant education.
In addition, TBS’s intellectual training and education business supports learning fora wide range of generations through investments in Place Holder, Inc., which plans andoperates experience-based digital theme parks, and through a business alliance with
UZABASE, known for the social, economic media NewsPicks.

Risks • Impact on rental income due to changes in the real estate & leasemarketReal Estate and Other Business
Net Sales and Operating Profit
Net sales

位入ル）• Increase in capital expenditures due to soaring real estate market
value in the Akasaka area

Operating profit• Increase in operating costs due to real estate acquisitions(Billions of yen)(Billions of yen)17

9

20,000

Opportunities 

16.5• Increase in rent income due to the acquisition of properties in the
Akasaka area

15,00016

10,000

7.5

15.5

5,000
0

15

38

■ Growth Strategies• Increase in revenues from attracting customers to existing facilities
because of the Akasaka Entertainment City Plan
Issues needing
addressing

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As seen in TBS GroupVISION 2030

• Current state of “the city offering the greatest
emotional experiences in the world”• Efforts to address global environmental problems• Completion and operation of Akasaka
Entertainment City Plan
• Making Asakasa another Broadway

Topic

3

Connecting cross-organizational ideas
JNN Business Challenge

Based on the starting question “What will ittake to survive in the general media industry in five years?”, we launched the businessproposal system “TBS Group Business Challenge” in 2018 with two goals: 1) create
new business models and 2) foster businessmindsets in our staff.
We have adopted two proposals eachfrom the three past sessions, and commercialization for each is underway. From 2021,
the call for proposals will be extended beyond the TBS Group to JNN affiliate stations, and the name will be changed to JNN
Business Challenge (details on page 45).

List of Adopted Proposals
FY2018 Smartphone-first Video Content Event
Business (PURPOSE)
VR/AR Business (Kaiju no Sumika Kaiju
Haven VR Adventure)
FY2019 A n i m a l C o n t e n t - b a s e d E d u c a t i o n a lEntertainment Business (Amazing Animals/WAKUWAKU YouTube Channel)
Wellness Business Offering the Wonderful “Moments” (Akasaka Sauna
Project)
FY2020 Rental Space Service to Relive TV Drama
Experience (The Full-Time Wife Escapist
Space)
Video Upload Service for Dance Lovers(CYPHER (Provisional Name))

TBS Group Integrated Report 2021

39

Chapter 5

Non-Financial CapitalTBS’s Non-financial Capital and Strengths
TBS has always focused on strengthening its three main non-financial assets of Creation, through which it makes
timeless, high-quality content; Reach, which brings it direct multi-platform contact to viewers, listeners and customers via the airwaves, theater performance, and in retail shops; and Trust, which has been accumulated by observing society and the times.

When we renewed the TBS brand in 2020, we investigatedand adopted the concept of redefining our company’s ideal
as “Personality,” much like any individual. With input fromoutside opinions, we came up with the following words to express what we have worked on, and what we have achieved:Intelligent, Honest, Energetic, and Filled with a Spirit of Challenge. This character and way of thinking are the driving
force behind all of TBS’s non-financial capital.
The core is People Power. Placing as its main pillar acquiring and training professional human resources (human capital), the company has built a wide range of partnerships cultivated through content production (social and relationshipcapital), has collected a stock of IP through active researchNon-financial CapitalInternal Strength

Human
CapitalOutstanding people to create
the wonderful “moments”

Intellectual
CapitalContent andproprietary technologies

Manufactured
CapitalSites that create content

NaturalCapitalPromotion of green energy

40

TBS Group Integrated Report 2021

Improving TBS Quality
through TGU, a in-house
university that cultivates
greater sensitivity andknowledge

A vast array of content andthe technology tocreate more
Digital technology beyond
broadcasting

TBS’s studios, theaters, andother facilities for creating
and delivering original
entertainment

Content created withgreen energy
The wonderful “moments”
for the earth, as well• Promoting: Young directors and producers having an impact
on production• Human resources development: Holding a wide range oftraining courses through the in-house institution TBS Group
University (TGU)• Training: Thorough training for staff with a focus on humanrights• Recruitment: Career-oriented hiring for professionals invarious fields (lawyers, CPAs, tax accountants, SEs, etc.)• Specialist skills for content creation(Expertise in interviewing, composition, editing, script
writing, direction, and more)• Copyright portfolio built through content creation• Expertise in content transmission and delivery built on acore of broadcasting technology• Marketing knowledge, including advertising effectiveness• Proprietary technology (Mojiko, a transcription editor thatuses AI voice recognition, has won various awards including
the Minister of Economy, Trade and Industry Award)

and development, including proprietary technology and accumulated video archives (intellectual capital), and studios,
editing facilities, and theaters for production (manufactured
capital). TBS is also constantly examining and improving onearth-friendly business practices (natural capital).
Through these non-financial capital, we “create” content, “reach” people’s lives using diverse platforms, including the publicly funded airwaves allotted to us, our own
theaters, and shops; and hope to continue building Trustby engaging with society and listening with sincerity to diverse voices. We look to deliver the wonderful “moments”
to everyone through the three strengths of Creation - Reach- Trust.

Strength 1

Outside Strength

Creation
Social and Relationship
Capitalof content that ispassed down andrefined throughthe generations

Collaboration with partners

Strength 2

Longstanding partnerships
Newly developed Co-creation
And a network with local stations

Reachthrough diverse platforms,
including broadcasting,theater, and stores• As a broadcaster, TBS Broadcast Center has functions forthe full range of broadcast needs, with studios for live
broadcast and recording, as well as editing and transmission
facilities• Midoriyama Studio City, a content production specialist
studio• TBS Akasaka ACT Theater and IHI Stage Around Tokyo• One million kWh of the power used every year at TBS
Broadcast Center is green electricity• T he 6th of every month is named Green Electricity
Promotion Day, and all the electricity used for broadcastingthat day is green• TBS Akasaka ACT Theater, Akasaka Sacas Plaza, and TBS
Radio Toda Transmitting Station are all operated using
100% renewable energy• Partnerships with performers, production
companies, entertainment agencies,
original authors, scriptwriters, etc.
established around content creation• Co-creation with partner and companies
funded by TBS for new business ventures• Two robust broadcasting networks, withthe 28-station Japan News Network(JNN) on television and 34-station Japan
Radio Network (JRN) on radio• Trusting relationships with viewers,
listeners, and customers

Strength 3

Trustaccumulated byobserving society
and the times

TBS Group Integrated Report 2021

41

Chapter 5

Non-Financial CapitalTBS’s Human Resources (Human Capital)

Outstanding people to create thewonderful “moments”
One of the foundational elements we offered for the TBS Group Medium-Term Management Plan 2023 is “enhance organizational strength through creative, challenge oriented human resources,” and so we will strive tobuild up the human resources, develop job satisfaction and skills, and build an organization that produces real results. We are also promoting initiatives to revitalize the organization, pass on skills, provide active training throughTGU and other means, and increase the percentage of female managers.

The Characteristics and Strengths of TBS’s Human Resources

Human resources full of sensibility and knowledge
Actively promoting young directors andproducers
TBS values the ideals of inheritance and creation in the production studio. Rather than relying solely on the personalabilities of individual outstanding creators, we encourage inheritance—the sharing of expertise from senior employees—
while newer hires create content by refining that inheritancethrough modern sensibilities.
In the variety show area, which requires younger sensibilities, eight of our regular programs have producers who
have joined the company since 2010, and at least 10 one-off
programs in the past year have had similarly new producers
or directors.
In the drama area, programs with producers and directors who joined the company from 2009 on (10, of which 8
were women) reached 14, including the much-talked-about
Sannin no Papa which was produced by woman in her thirdyear with the company.

Women in the Newsroom
The number of women serving as senior editors in the TBS
News Division, with the authority to determine program direction and news items, has increased significantly in recent
years.
Five of the eight editors-in-chief of the weekday evening
program N-ST and the evening program News23 are women. Most of them have been with the company for around25 years, but the youngest woman editor-in-chief has been
here for 16 years.
All offer full support of daily news program production

42

TBS Group Integrated Report 2021

with their extensive experience in interviewing and production.
The editor-in-chief of the News Special broadcast on
Saturday is also a woman. Another woman, who joined thecompany in 1999, is in charge of news digital development,
an increasingly important field in recent times.
The world of news reporting has had an identified bias
toward patriarchal social values, but TBS has been engaged
in rapid reform to counter that.

Hiring employees with diverse backgrounds
Beyond hiring highly qualified people like certified public accountants and lawyers, TBS actively recruits those with diverse
backgrounds from various industries for career positions.
Career hires from prominent IT companies, electronics
manufacturers, and trading companies are involved in business strategy planning; a former electric power company
employee is involved in the live entertainment division; anda former professional baseball player (a first-round draftpick) is in the sales division. In the news bureau, we havegathered reporters from leading weekly magazines, newspapers, and other media with different reporting methods
to add coverage depth, and one reporter who previously
worked as a Shinkansen driver provides accurate commentary on railroad accidents.
New college-graduates hires include a licensed doctor
who helps with a medical drama, and a licensed pharmacist working in the TBS Programming Division, each of thembringing new perspectives to various areas of the TBS business.

TBS’s Human Resource Strategy

Honing greater sensibility and knowledge

TBS Group Medium-Term Management Plan 2023
Management Infrastructure
Enhance organizational strength through creative,
challenge oriented human resources
Build up the human resources, develop job satisfaction
and skills, and build an organization that produces real
results• Expand career employees with specialist knowledge &capabilities•Train and acquire group creative employees for the EDGE
strategy• Secure digital talent for a more flexible, capableorganization

Raise growth potential for the TBS Group as a whole
Enhance the sense of unity within the TBS Group
Foster a culture of innovation
As a comprehensive media group, TBS is engaged in the
broadcasting, video, culture, video streaming, real estate,and shopping businesses. As we further spread our wings toward a new age, we have positioned as some of our mostimportant tasks the hiring and training of human resources
for active roles in every field.
We are focusing on hiring employees who can embody
our new management philosophy and brand promise. Not
only is our orientation toward the television business strong,but our selection criteria aims for people willing to take on
new challenges beyond the framework of television.
In development, we provide group training for different
employee classes when they join the company, then in theirsecond, third, fifth, and eighth years, and at the age of 35.
Together with regular individual interviews, we support thegrowth and ambition of each employee toward their own

career. As part of the various training programs for managers, we conduct Next Generation Leader Training and Department Manager Selection Training sessions, which focus
on the development of management-level employees, andthe results of which are presented directly to top management.
In 2018, we opened the TBS Group University (TGU), thecenterpiece of our human resources development program.
TGU provides selective learning opportunities for 6,000 people working as a part of TBS. It aims to raise growth potential
for the TBS Group as a whole, enhance the sense of unity
within the TBS Group, and foster a culture of innovation.
The underlying principle for this training is to nurture everyone working as a part of TBS who can adapt to a rapidlychanging environment in order to continue to contribute tosociety and achieve sustainable growth for the TBS Group.
TGU offers a wide variety of programs, including various
courses essential for advanced business; broadcasting, media, and human rights courses closely related to daily operations; lectures from invited guests; courses offered jointlywith other companies; and overseas study tours. 4,339 students enrolled in 121 courses in FY2018, and 4,150 students
enrolled in 137 courses in FY2019. In FY2020, despite the
COVID-19 pandemic, 3,800 people enrolled in 95 courses,
which were mainly remote.
In order to develop in terms of management while stillrecognizing the highly public nature of our position, it isessential to have employees with a sense of ethics who arewilling to engage in self-led education and development.
TBS will continue to build human resources development
initiatives to nurture employees who can contribute to thecreation of a more hopeful society, and one that is more sustainable and prosperous.

TBS Group Integrated Report 2021

43

Chapter 5

Non-Financial CapitalTBS’s Intellectual Property (Intellectual Capital)

Content and original technology
TBS’s intellectual capital is built upon the vast array of content that is has created since its founding as a television
broadcaster, and now ranges far beyond the television framework. This also includes the expertise, skills, andunique 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 throughdigital skills.

The Characteristics and Strengths of TBS’s Intellectual Capital

Our vast array of content, and the proprietary technology wedeveloped 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, and all the specialized skills (expertise in interviewing, composition, editing, script writing, direction, and more)
cultivated in the production process have been passed fromgeneration to generation, and are being refined on a daily basis.
TBS has a high ratio of internal production, which gives it
the advantage of a large internal skill reserve.

Content does not end with a program broadcast. It lives
on in the ongoing copyright and reaches viewers throughonline 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 of advertising on content distribution, is also growing stronger every day.
TBS continues to develop its own proprietary technology for content production and delivery, and technologies
initially envisioned for its own broadcasting are increasingly
being used by other companies in the industry, as well as foracademic research.

TBS’s Patents andTrademarks

Content

Notes

Registered and Existing

18

Pending

10

Television and radio content

Including joint(Dramas, variety shows, news, sports, anime, etc.)

Patents

Performance content(Movies, theater, musicals, live music, etc.)

Media
Content

Program formats

Japan Registered and Existing120

All independently owned HD/TV/R only

Japan - Pending25

All independently owned HD/TV/R only

Overseas - Japan Registered and Existing75

All independently owned HD/TV/R only

(SCHOP Inc., etc.)

Overseas - Pending

10

All independently owned HD/TV/R only

• Specialist skills for content creation(Expertise in interviewing, composition, editing, script
writing, direction, and more)

Manga
Patents, intellectual property, and music

Trademarks

Intellectual training and education• Copyright portfolio built through content creation

Content
production
Abilities

Mojiko, the AI-based app that helps reduce transcription effort

TBS’s Intellectual Strategy

A vast array of content and the power to continue creating
Outline of TBS’s Intellectual Capital

From the information website for ultra-high speed file transfer software
STORM Ⓡ

Reinforcing and accelerating continued content production strength

TBS Group Medium-Term Management Plan 2023
Growth Strategies
Digital: Strengthen streaming and digital content
development• Growth in video streaming business and earnings
expansion• Expand the scope of news reach and monetization• Develop new digital content business

Ultra-high speed file transfer software
STORM® and AI-based transcription editor
MojikoTBS has developed and patented STOR® software. The initial
purpose was to transfer large amounts of data like video or
audio interview footage quickly and safely over ordinary internet lines, but its incredible ability to transmit a file the sizeof a full DVD in less than a minute has led to its widespread
use by not only broadcasters but also major manufacturers,
mail-order companies, medical companies, and national research institutes.
Mojiko, a patented transcription editor using an AI voicerecognition engine, was developed to free program production employees from the burden of transcribing interview
content. Mojiko has been introduced as a tool to improve
the working environment in any workplace that requires
transcription, and has received various awards including the
Minister of Economy, Trade and Industry Award 2020 and

the IT Award from the Japan Institute of Information Technology. So, along with its content and services, TBS develops
proprietary technology that offers values beyond broadcasting to various aspects of society.

Monetizing proposals adopted from thebusiness proposal system
We have adopted two proposals each from the three past sessions of the TBS Group Business Challenge (JNN Business Challenge from 2021), and commercialization is underway. One ofthe proposals from FY2019 was for an animal content-based
educational entertainment business (Amazing Animals! YouTube Channel). As a result, TBS is now developing an educational entertainment business by optimizing for online-viewing its animal video archive, which has been gathered for
popular animal programs like Amazing Animals! and Waku
Waku Animal Land. It is not now possible to film much ofwhat TBS has stockpiled, making the archive of ecologicalfootage a highly valuable intellectual asset. This archive isbeing offered to society in a new form, as a business modelthat offers deeper understanding of biodiversity, and from
September 2020 we started theYouTube channel Amazing Animals/WAKUWAKU. In less thana year, this content has amassed
188 thousand subscribers (asof August 2021), including astrong fan base overseas, andhas monetized with some content having 3.96 million views.

• Expertise in content transmission and delivery built on acore of 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)

44

TBS Group Integrated Report 2021

TBS Group Integrated Report 2021

45

Chapter 5

Non-Financial Capital

Co-creation with Partners (Social and Relationship Capital)
Co-Creation with the World: Steps Toward Achieving SDGs

Co-creation has been in our DNA since
our founding
Since its beginning as a broadcaster, TBS has grown through co-creation with partners. TBS has co-creation embedded in its business DNA, such that continuing its current business would be impossible without partners, who are
performers, interviewees, local stations, and outside production companies, all of which help form a network thatdelivers our broadcasts nationwide.

The Characteristics of TBS’s Social and Relationship Capital

One of the key examples of TBS’s recent co-creation projects with partners is its promotion of SDGs achievement.
In August 2019, TBS joined the UN’s SDGs Media Compact,signifying its commitment to join media organizations
around the world in actively promoting the SDGs in andoutside of Japan. TBS Television has offered informational series like Save the Oceans: Plastic Pollution and SDGs
Toward the World of 2030, while on TBS Radio we haveoffered “Challenge Zero CO2 Reduction Campaign”. TBS
further strengthened and scaled up these efforts with theSDGs campaign “Week to Make the Earth Smile” (details
on page 11), which was held in November 2020 and again
from April to May 2021. We continue to pursue co-creation
with partner companies.

The first “Week to Make the Earth Smile” featured a
exclusive interview with António Guterres, SecretaryGeneral of the United Nations.

Co-creating value with a wide range of partners
Joint project with the United States
government: A Discussion with President
Clinton in Tokyo, Japan (1998)
TBS has long worked hand in hand with outside partners
to serve as a hub for value creation to offer the wonderful“moments,” with projects like The First Japanese Cosmonaut(1990), produced in cooperation with the Soviet Union’s general space command Glavkosmos, and A Discussion with President Clinton in Tokyo, Japan (1998), a joint project with theUnited States government. Today, and always, TBS offers value to society and the world through co-creation with its partners. Partnerships starting in 2022 include bringing the hugely popular British stage show Harry Potter and the CursedChild to Japan. This will make the Asian debut for the show,
which has been a long running hit in London and New York.

TBS Group Business Partners
TBS Group business partners include joint partners and companies funded by TBS, production companies, entertainment
agencies, performs, and indicate any enterprise, group, or individual that works with the Group.
With 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.
Both the JNN and JRN include long-established local stations, many of which do not receive any TBS investment, andthe contractual relationship is between independent companies. However, these partnerships have been strengthened
to cope with recent changes in the broadcasting station environment by promoting DX through inter-affiliate cooperation, implementing joint projects and events, and improving
efficiency by transforming Tokyo branch office for 13 stations into a shared office, which also helps with rent.

TBS’s Own Facilities (Manufactured Capital)

Bases for content creation
This section introduces TBS’s manufactured capital, the equipment and facilities that make possible TBS’s value creation
cycle of Creation and Delivery.
The Broadcast Center in Akasaka, Tokyo, has studios,
sub-control rooms, and editing facilities for content Creation, with a network control center and master control
room for delivering content over the airwaves.
Apart from TBS Broadcast Center, we have OB van helping to deliver video and audio, information cameras perma-

nently installed in various locations around the country tohelp bring disaster updates and other vital information on
location, and also a transmission facility in Tokyo Sky Tree.
TBS also has theaters like Akasaka ACT Theater that bothcreate and deliver content, such as plays and concerts, aswell as Midoriyama Studio City, a spacious studio dedicatedto television drama creation. TBS has a wide range of production capital.

As a broadcaster, TBS Broadcast Center has functions
for the full range of broadcast needs, with studios forlive broadcast and recording, as well as editing andtransmission facilities

Midoriyama Studio City, a content production specialist
studioMarch 2008
Town Hall Meeting withformer UK Prime Minister Tony Blair
Outside of Midoriyama Studio City
November 1998
Town Hall Meeting with
US President Bill Clinton

June 2003
Town Hall Meeting with
South Korean President Roh Moo-hyun

SNG OB van

TBS Group Integrated Report 2021

N-Sub (News studio sub-control room)

TBS Akasaka ACT Theater and IHI Stage Around Tokyo

Stage show Harry Potter and the Cursed Child
Network Control Center

46

Inside of Midoriyama StudioTransmission Station in Tokyo Sky Tree

TBS Akasaka ACT Theater

IHI Stage Around Tokyo

TBS Group Integrated Report 2021

47

Chapter 6

Initiatives to Support Value Creation

The TBS Group’s Take on Sustainability
ESG Promotion System

Creating a Happy and Sustainable
Society Together
Achieving the social mission of media, and contributing to SDGs
The TBS Group is working as a media company together with companies, non-profit organizations, regional communities, and all stakeholders to build a wide range of partnerships, and together is building a happy and sustainable society. Within the Earth (E) on which we live and Society (S) in which we work, as a responsible company weare using Governance (G) to take a variety of management measures to provide wonderful “moments.”
Additionally, we will be more aware of the social mission of media, fulfilling our responsibility in being a starting point for influencing society.
Our actions target achieving our social development goals—the SDGs—which are self-imposed goals set byinternational society for 2030.
In June 2020, we also put in place a new “ESG Strategy” director, and a system to further promote ESG management.

TBS Group Medium-Term Management Plan 2023
“Focusing on recovery from the pandemic and sowing seeds for growth”

At TBS, our CSR Planning Department has been central to ourefforts towards sustainability. For the environment, we haveestablished the Energy-saving Promotion Committee. We arepromoting the rational use of energy, and continuing withactivities to promote measures to counter global warming.
In 2020, to achieve further Group growth and increased
corporate value, one board director takes responsibility for

ESG strategy, and one executive director takes charge of this.
The SDGs Planning and Strategy Department has also been
established in the President’s Office in order to promote
SDGs and ESGs throughout the Group as a whole.
We are building an organization to urgently promotesustainability management that addresses important ESG
issues across the whole TBS Group.

Important ESG issues during the period of the TBS Group
Medium-Term Management Plan 2023
Fulfill social mission and responsibilities as a media group■ Communicate facts fairly, accurately, and widely.

Amidst a flood of information, transmit information that is trustworthy

Be a society that protects peace, freedom, and human rights,
and that is a cornerstone of democracy■ Be a starting point for influencing society, mobilizing individuals, and driving society forward

To contribute to achieving 2030 SDGs, we are working with partners in a rangeof fields to put out information that leads to awareness and action
Implement phase 2 of the SDGs campaign “Week to Make the Earth Smile” from April to May 2021,
and work to continue and develop thisSafe and secure “information lifeline”

Core businesses

Growth strategies

Innovating
broadcasting

Implement EDGE
strategy

Protecting the environment

Disaster, emergency, and infectious disease
countermeasures

Energy conservation, renewable energy
Sustainable production and consumption
Biodiversity, bounty of the seas and of forests

Support mental and physical health
Food, sport, interchange

A fair society, respecting diverse
perspectives

Innovating broadcastingAs urgent issues during the period of thecurrent medium-term management plan, gain
next-generation viewers as part of innovating
broadcasting, gain next-generation viewers as part ofrebuilding social value in a way unique to TV, promoteCorethe optimal distribution and multiuse of production
businesses costs as part of rebuilding social value in a way
unique to TV, and strengthen JNN network affiliates

Connecting to the future

Remedying inequalities, gender equality,
respect for LGBT
Achieving a coexistence society with people
with disabilities
Work-life balance

Growthstrategies

To achieve VISION 2030 goals, give tangible
form to the EDGE strategy for distributing
content, and carry out measures tokickstart growth in the digital, overseas, live
entertainment, and lifestyle areas

Enhance intellectual training and education
Support youth social activities

Address environmental and social issues,and contribute to SDGs achievement

E

S

Strengthen governanceG
Effectiveness of Board of Directors

Diversity & inclusion■ Strategic investment for growth■ Enhance creative capabilities, and develop and recruit digitally-capable human resources■ Leverage competitive strengths through technologies

Management
infrastructure■ Enhance the corporate brand and foster a sense of unity■ Establish a foundation for growth through Group reorganization

Group governance
Solve global environmental
problems
Climate change, etc.

Workstyle reform,
human resources development

Reduction in cross-shareholdings
Ensuring information security■ Fulfill social mission and responsibilities as a media group■ Address environmental and social issues, and contribute to SDGs achievement

ESG management48

Responsibilities as broadcasters
and media

Risk management■ Strengthen governance

TBS Group Integrated Report 2021

TBS Group Integrated Report 2021

49

Chapter 6

Initiatives to Support Value Creation

Environmental Initiatives

E nvironment

Solve Global Environmental Problems“TBS Group Environmental Vision”
TBS created its TBS Group Environmental Vision in January 2007 declared that it would set and act in line with clear activities targets “so that we can pass this beautiful earth on to following generations,” a problem facing the whole world, and formulated its“Voluntary Environmental Action Plan.”
The “TBS Group VISION 2030” and “TBS Group Medium-Term Management Plan 2023” announced in May 2021 also set forth
our commitment to protecting the global environment and to working to resolve problems confronting it.

Wonderful “moments”
for the earth onwhich we live

Responding to climate change and decarbonization

TBS launched the Honeybee Project in 2011, and through activities such as beekeeping, honey collection, and interactive children’s classes together with the residents of Akasaka, is working for coexistence with nature throughout thecommunity.
Bees fly between and pollinate the innumerable flowers in the area, helping them fruit.
A single bee only produces one teaspoon (0.5g) of honey in its lifetime, but that tiny quantity brought to us withthe buzz of tiny wings has an exquisite value in that it sustains life, enriches nature, and brings nourishment to people.
Through these and other unique efforts, the TBS Group is working to contribute to the protection of the global
environment.

Business Environment

TBS Group Initiatives

Business Opportunities

Contributing to Social Issues

Increased awareness of
reducing environmental
impact, climate change,
and a decarbonizedsociety

Protecting the environment
Energy conservation, renewable energy
Sustainable production and consumption
Biodiversity, bounty of the seas and of forests• Create and provide content on
climate change and other environmental issues• Build environmental protection
partnerships together with companies, non-profit organizations, andlocal communities

Promote usage of renewable energy
The TBS Group has partnered with Minna-Denryoku Inc., andin December 2018 switched the Toda Transmitting Station,
the main AM broadcaster for TBS Radio AM, over to 100%
renewable energy.
In October 2019, the TBS Akasaka ACT Theater, Akasaka BLITZ, and the Akasaka Sacas Plaza all switched to 100%
renewable energy at the same time. The TBS Akasaka ACTTheater became the first large theater in Japan to be a 100%
renewable energy theater, and this uses blockchain technology to verify the origin of this power.
Furthermore, the TBS Midoriyama Studio will switch
over to 100% renewable energy in FY2021. This switch torenewable energy is being carried out using J-Credits thatcertify the origin of renewable electricity. J-Credits derived
from renewable energy generated from solar cells installed
on homes in Japan will be purchased through Minna-Denryoku Inc.
Using this system, the Midoriyama Studio will become
Japan’s largest 100% renewable energy studio, with 100%
renewable energy being used for studio filming of all TBS
dramas airing from April 2021 onwards.

Under the J-Credit system for renewable electricity, thegovernment certifies as credits the amount of greenhousegas emissions reductions from renewable energy. Under thisinitiative, we have managed to achieve zero-carbon, 100%
renewable energy by using J-Credits generated using solar
photovoltaic generation installed on houses.
The TBS Group will continue to study and promote usageof renewable energy.

<Collaboration with Minna-Denryoku Inc.>
Minna-Denryoku is an energy venture that sells renewable energy procured from around Japan using its own
electronic trading platform.
The company was the first to use blockchain technology to verify the origin of the power generated,
and its development of advanced technologies is garnering attention. In December 2020, Minna Denryoku
received the SDGs Chief’s Award (by Prime Minister)at the 4th “Japan SDGs Awards,” recognizing its outstanding achievements in attaining SDGs.

TOPICS

Risk Management

Requirements andexpectations forenvironmental impact
management in company
and group company
corporate activities
Environmental impact
management in companyowned real estate
Increased requirement
for environmental impact
management in the retailindustry
Difficulties with business
continuity occurring
because of environmental
factors50

TBS Group Integrated Report 2021

TBS Group Initiatives

Results and Indicators

Responding to climate change
and decarbonization■ Reduce CO2 emissions(at least 36% reduction over baseline
emissions*)• Promote usage of renewable energy• Reduce emissions of greenhouse gases
and CO2
Effective use of limited resources• Increase recycling rate
• Water consumption
Consideration of biodiversity• Honeybee ProjectIncreased awareness ofenvironmental issues• Increase awareness of environmental issues“Midoriyama Studio
100% Renewable Energy” and“HOUSE that Makes the Earth Smile”■ Promote energy-saving in company-owned facilities■ Reduce energy consumption■ Increase awareness of environmental
issues[HOUSE that Makes the Earth Smile]
In Summer 2021, “HOUSE that Makes the Earth Smile”
was opened as a new location that communicates SDG
initiatives in one part of Akasaka Sacas. In conjunction
with SDGs-related projects broadcast on TBS Television,
TBS Radio, and BS-TBS, TBS has held interactive exhibitsthat visitors can see and interact with. We will also holdonline and real-world workshops to provide visitors withthe chance to experience SDGs as something that theyown. The first of these exhibitions provides content withwhich children could use for free learning during theirsummer vacation. This includes learning about SDGs
using wisdom from life in the Edo period, as well as
learning the rules of para-sports and experiencing its
equipment (scheduled to run to November 2021).

■ Increase recycling rate
*CO2 baseline: average CO2 emissions over 3 years
from FY2002 to FY2004
As of FY2021, the Midoriyama Studio (Yokohama, Kanagawa Prefecture) where dramas are
filmed will move to 100% renewable energy[Midoriyama Studio][In-house garbage separation]

The huge 264,500 m2 Midoriyama
Studio using 100% renewableenergyThe “TBS Color Box” system makes separating
trash easier to understand. Leftovers fromlunches are used as livestock feed

TBS Group Integrated Report 2021

51

Chapter 6Media Content

Initiatives to Support Value Creation

Social Initiatives

S ociety

Responsibilities as broadcasters
and media
As a media company with a social mission, TBS fulfills different roles. As a cornerstone of democracy and of a societythat safeguards peace, freedom, and human rights, it also
acts as an information lifeline in the event of disasters occurring or when countermeasures against infectious diseases
are required.

Providing wonderful“moments” toall members of society

Diversity & inclusion(Workstyle reform, human resources development)

Promoting the TBS way of working

While fulfilling our responsibility as a media outlet, the TBS Group’s approach regarding society is to pose questions
about social issues, and to look for opportunities for their resolution.
The Group has an in-house university, TGU, at which everyone working as a part of TBS can experience a diverse
range of viewpoints and different values.
We have also established the in-house Hanasakasu Nursery School as a way to support employees who are raising children.
Business Environment

TBS Group Initiatives
Responsibilities as
Broadcasters and Media

Contributing to Social Issues

Business Opportunities

Gaining momentum
towards solving social
issuesBroadening diverse
partnerships, monetizing
Expectations ofrevitalization and healthy
development of regional
economies

Safe and secure “information lifeline”• Creating and providing content on
human rights, discrimination, andother social issues

Disaster, emergency, and infectious disease
countermeasures

Support mental and physical health• Promoting “co-cooperation innovation” with diverse partners

Food, sport, interchange

A fair society, respecting diverse perspectives
Remedying inequalities, gender equality,
respect for LGBT
Achieving a coexistence society with people
with disabilities
Work-life balance• Cultivating the “ability to solve
social issues” through nurturing,
intellectual training and education of the next generation

Connecting to the future

Increased necessity anddemand for information
lifelines given frequentdisasters

Risk Management

Health, safety, and job
satisfaction of company
workers and employees
Increasingly diverse
values and needs ofviewers, listeners, andcustomers
Health, safety, and job
satisfaction of business
partners (dispatch andproduction companies)
Heightened needfor strengthened
information
management systems

Enhance intellectual training and education
Support youth social activities• Promoting policies towards
developing human resources who
embody “TBS Quality”

TBS Group Initiatives

Results and Indicators

Enhanced information lifelines•B etter information dissemination and digitization at the timeof disasters
Human resources management

TBS Group Integrated Report 2021

■ Human resources management
Diversity & inclusion■ Fair content creation

Fair content creation•R eporting that is fair, just, accurate, and that respects diverse
values•G rasping and understanding the voices and needs of viewers,
listeners, and customers■ Appropriate business operations

Appropriate business operations•G uaranteeing human rights and working environments, andconsideration for staff dispatch and production companies

Ensuring diversity
In 2019, TBS established the Office of Diversity Promotion
within the human resources department. TBS is implementing career support training for female employees, seminars
targeting managers to help them develop female subordinates, training for managers who are supportive of subordinates who are raising children, and seminars to create aculture supportive of diversity (seminars on different types ofharassment, to promote LGBT understanding, etc.).
We are also promoting the development of an environment surrounding employment in which women can play anactive role. We have set a goal to increase the percentage ofwomen in management positions to 20% or more during thefive-year period of the plan (April 1, 2020 to March 31, 2025).
To this end, we are working to 1: carefully scrutinize promotion
decisions, 2: ensure training that has an awareness of diversity
and inclusion, and 3: create an environment in which employees who works while raising children can play an active role.
*Ratio of female managers at TBS Television: 13.5% (as of February 1, 2021)*Combined ratio of female employees at TBSHD and TV companies: 23.0% (as ofFebruary 1, 2021)

Appropriate business operations

Guaranteeing human rights and working
environments, and consideration for staff
dispatch and production companies
In response to dramatic revisions to the Worker Dispatching
Act in 2015, TBS has been improving the working environment through the establishment of a new Labor Support
Department to ensure better management of the dispatch
systems, which formerly came under the aegis of the Labor
Policy Department. We held seminars conducted by specifiedsocial insurance labor consultants to explain laws and regulations—in 2015 covering the dispatch licensing system, and in2020 covering equal pay for equal work (in the dispatch system). These garnered high praise from participants. TBS is alsoa member of the SDG Media Compact, a global movement
which seeks to advance SDGs. Towards achieving the 8th goal,
Decent Work, we are working every day to provide everyone
who works at the TBS Group with job satisfaction, training opportunities, and new work environments (teleworking, etc.).

• Increased ratio of female executives• Installation of unisex bathrooms, etc.

Diversity & inclusion• E nsuring diversity in the workplace and in decision-making (inparticular, increasing the ratio of women)• P romoting workstyle reform
Human Capital
P.42• Increased content and frequencyof trainings, higher participant
numbers• Manage production costs• Reduce total working hours■ Ensuring information security• Support for teleworking

Ensuring information security• T aking cyber security measures• P rotection of intellectual property
Intellectual Capital52• Preparations towards the openingof the Akasaka Entertainment City

We have designated and are promoting“T-Work,” a way of working unique toTBS in which people with diverse values
and ideas can work in concord to create
new value.
TBS Group University (TGU) is an in-house universitythat opened in 2018 as a venue for learning within the TBS
Group. This supports self-learning of everyone working with
the TBS Group, including temporary staff.
In collaboration with Hakuhodo and Hakuhodo DY Media Partners, in April 2018 we opened the Hanasakasu Nursery School to help employees raising children be able to return to work, contribute to their career plans, and contributeto local communities. This nursery is also open to the local
community, and its popularity means it is always at capacity.
We are constantly promoting T-Work not only amongst
TBS employees, but also temporary staff, the local community, and a range of other people.

P.44

Providing information to support people’s lives and livelihoods using a special website
during times of disaster

Reducing working hours using Mojiko, an AI-based transcription editor

TBS Group Integrated Report 2021

53

Chapter 6Media Content

Initiatives to Support Value Creation

Governance Initiatives
Shoichi Watanabe
Board Director

Tatsuo Sugai
Board Director

G overnanceTakashi Sasaki
President &Representative Director

Approach■ Restructure the Board of
Directors

Business Opportunities

Accelerate management
decision-making andensure transparency andfairness

Effectiveness ofBoard of Directors

Enhance the content value
by strengthening themanagement of groupcompanies
Foster the next generationof management■ Elect specially appointed
Executive Officers■ Reorganize 30 related
subsidiaries

Group governance(TBS SPARKLE, Inc., TBS GLOWDIA,
Inc., and TBS ACT, INC.)■ Introduce the Group Executive
Officer System

Dialogue with shareholders
and investors throughpositive IR activities

Reduction incross-shareholdings■ Review the purpose of holding
each issue by the Board of
Directors

Results and Indicators■ Independent Outside Director
accounting for one-third of
the Board of Directors■ Increase Independent
Outside Directors of
the Compensation and
Nomination Advisory
Committee■ Group Management
Efficiency■ Thorough Compliance

Makoto Haruta

Hitoshi Kashiwaki

Independent Outside Director

Independent Outside Director

Corporate Governance■ Take cyber security measures

Governance Topics
Elect specially appointed Executive Officers (Resolution by
the Board of Directors on October 1, 2020)
Specially appointed Executive Officers, whether full-time or■ Ideal Group Financial Results

Corporate Governance Structure (as of June 29, 2021)
General Meeting of Shareholders■ Approx. ¥32.4 billion
reduction by sales in FY2020

Nomination Advisory
Committee

Appointment /Dismissal

ReportingComprehensive Risk Management
Committee (Group)
Supervision

Investigation Order

Corporate Conduct Committee (Group)

Whistleblowing

Group Executive
Committee

Reporting

TBS Hotline
Internal Audit / Internal Control Assessment

Board of Standing
Directors

Reporting

Reporting

ReportingInternal Business / Accounting Audit■ Define and evaluate risk
management criteria

Coordination

Accounting Auditor

Reporting

Supervision■ BCP (Business Continuity Plan)

Reporting

Office of InternalBusiness Audit

President

Direction■ Compliance (prevention ofcorruption and fraud)

Coordination

Direction

Develop original personal
information protection system“hogwan” and “Secure Mail
Service”■ Comprehensive risk
management: internal audits
and reviews

Appointment / Dismissal

Recommendation

Auditing of Business Execution

Reporting

Risk management■ Protect personal information

Improvement ofInternal Control

Ensure accountability forfair stock market creation

Appointment /Dismissal

ReportingAppointment / Supervision

Reporting

Reporting

Prepare for a catastrophic
disasterConsultation

Recommendation

Board of Directors

Appointment

Reinforce information
securityCompensation Advisory
Committee

Board of Corporate Auditors■ Zero reports of serious
accidents, including leakageof personal information in
FY2020Supervision

Risk Management

Ensuring
information
security

Independent Outside Director

Coordination

Participate in ICT-ISAC
Create a dedicated in-house team
(TBS CSIRT)

Yosuke Yagi

part-time, were established to have them demonstrate theirsuperior capabilities by leveraging their specialized knowledge and abundant experience from outside the Company.
Reorganization of the Nomination & Remuneration Advisory Committee
Members include three Outside Directors as of January 2021
(Three Inside Directors, three Outside Directors; Chaired byan Outside Director).
Introduction of “Restricted Share-based Remuneration System” for Officers’ Compensation
The Board of Directors reviewed the Officers’ Compensation
System and resolved to introduce the “Restricted Share-based
Remuneration System,” which was approved at the 92nd Ordinary General Meeting of Shareholders. The system provides
incentives for Board Directors other than Outside Directorsof the Company to improve the continuous corporate valueof TBS, and aims to share greater value with shareholders. As
a result of the management restructuring in June 2020, we
have also introduced the system for Executive Officers.

Effectiveness of the Board of Directors
The Board of Directors of TBS HOLDINGS, INC. has transformed its
structure in 2020. Of the nine Board Directors, three are Independent Outside Directors. Each of Outside Directors has experiencein Corporate Management that differs from those with TV andRadio background, and excels in skills in Finance and Accounting,and in Organization and Human Resources. In addition to ensuring diversity of governance in this way, since 2021 we have evaluated the effectiveness of the Board of Directors, commissionedby an external organization. TBS HOLDINGS, INC. is a company
with a Board of Directors, an Audit & Supervisory Board, and an
Accounting Auditor, and has established a Nomination Advisory
Committee and a Remuneration Advisory Committee.

Consultation

Prevent complianceviolations and problems
related to content andbusiness execution

Board Director

Representative Director

TBS has a responsibility to contribute to the market economy growth as a listed company. And at the same time, as acertified broadcasting holding company with a limited number of broadcasters under its umbrella, TBS is the company
empowered with a high public mission.
Our basic approach to corporate governance is to improve the management efficiency of the Group and maximize
TBS’s corporate value, while fulfilling the social responsibility as a certified broadcasting holding company.

Issues

Masaya Chisaki

Chairman &Board Director

Toshiaki Kawai

Each moment to be a
responsible company

Business Environment

Shinji Takeda

Auditing of Internal Control

Business Execution Division of TBS and its Group Companies
Accounting Audit

54

TBS Group Integrated Report 2021

TBS Group Integrated Report 2021

55

Chapter 6

Initiatives to Support Value Creation

Corporate Officers (as of June 29, 2021)
Board Director

Position
Responsibility

Shinji Takeda

Takashi Sasaki

Toshiaki Kawai

Tatsuo Sugai

Shoichi Watanabe

Masaya Chisaki

Hitoshi Kashiwaki

Yosuke Yagi

Makoto Haruta

Chairman and
Board Director

President & Representative
Director

Representative Director

Board Director

Board Director

Board Director

Independent Outside
Director

Independent Outside
Director

Independent Outside
Director

Chair of Board of Directors

Office of Internal Business
Audit

Head of Competitive
Strategy

Head of ESG Strategy● Outside Director, ASICS● Representative Director,● Representative Director● Outside
Director,● Director,
ICMG Co., Ltd.
Head of Finance Strategy

Head of Growth Strategy

General Manager of MultiPlatform Media Division● Chairman & Director,

Concurrent position

TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Director,
StylingLife● President andRepresentative Director,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Executive Vice President

and Board Director,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Senior Managing

Director,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Managing Director,

TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Managing Director,

TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

Corporation

Matsuya Co., Ltd.

● Outside Director, Kewpie

Holdings Inc.

Corporation● Director, MBS Media

people first, Ltd.

● Chairman and Director,● Division
President of● Director, General● Division President ofManager ofManagement MediaDivision● President&

Representative Director● Chairman & Director,

TBS RADIO, Inc.

Inc.

● Auditor,
GE HealthcareJapan Corporation● Division
President, Head

Office of Sales Divisionof the Company● Adviser, Money Forward,

IWNC Inc., Ltd.

Holdings, Inc.

Biography

and CEO, betaCatalyst
Inc.

Finance Division of theCompany
Group Managerial
Planning Division● Division
President ofTechnology Division,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Division
President ofSales Division,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Division
President of

TV Production Division,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

● Division President of

Programming Division,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

President’s Office of theCompany● President&

Representative Directorof Recruit Co., Ltd.
(Current Recruit
Holdings Co., Ltd.)● Division President of

Administration Division● Division
President ofGroup Managerial
Planning Division of theCompany● Division President of● Division
President of● Director& GeneralManager of Human
Resource Department of
GE Yokogawa Medical
Systems Ltd. (current
GE Healthcare Japan
Corporation)● Outside Director of

Suntory Beverage &Food Limited

Division of Human
Resources and Labor● Director& Executive

Chairman of DeNA Co.,Ltd.

● Director of GE Japan Inc.
● Executive Officer& Executive Vice
President of JS Group
Corporation (current
LIXIL Corporation)● President &Representative Director,
BS-TBS, INC.

● President &Representative Director,
TOKYO BROADCASTINGSYSTEM TELEVISION,
INC.

Appointed as Director

June 2007

June 2015

June 2014

June 2015

June 2018

June 2018

June 2018

June 2020

June 2020

Number of shares held (as of March 31, 2021)

39,91239,75831,322

23,04912,705

15,198000Attendance at Board of Directors (FY2020)

13/13 (100%)

13/13 (100%)

13/13 (100%)

13/13 (100%)

13/13 (100%)

13/13 (100%)

13/13 (100%)

10/10 (100%)

10/10 (100%)
Ratio of Outside Directors
on the committee

Committee
Nomination Advisory Committee

○

○

○

○ (Chairman)

○

○

3/6

Compensation Advisory Committee

○

○

○

○ (Chairman)

○

○

3/6

○

○

○

○

Corporate management

Expertise
Corporate management○○

Business strategy

○

○

○

○

○

Business strategy○

Finance and accounting

○

ESG

○

Legal and compliance○

Organization and human resources○

Finance and accounting
ESG
Legal and compliance○

Organization andhuman resources

Corporate
AuditorPosition

Tomohiko Nishino

Tetsuya Ichikawa

Standing Statutory Auditor

Standing Statutory Auditor

Teisuke Kitayama

Mie Fujimoto

Auditor● Advisor,
Sumitomo

Mitsui Banking
Corporation

Auditor● Lawyer● Partner (lawyer), TMI

Associates

Somitsu Takehara
Auditor● Certified
Public

Accountant● Director & Chairman,

ZECOO Partners Inc.

56

TBS Group Integrated Report 2021

TBS Group Integrated Report 2021

57

Chapter 6

Initiatives to Support Value Creation

Overview of Corporate Governance System

Compliance

As a system to ensure that board directors’ duties are executed in an efficient manner, the Board of Directors meetsin principle once a month to make decisions regarding important company business, and to report important matters.
In addition, there is in place a Standing Officers Committee
which conducts discussions to assist the president in decision-making and company business. This comprises 10 fulltime board directors and executive officers (10 males) andmeets in principle once a week. This carries out advance discussions of agenda items for the Board of Directors’ Meetings,
and discusses execution policies for overall business management, including Group operations. Under this are the Budget
Committee and Loan Committee, and the Facility Planning
Committee. These consider budgets and investments for theCompany and the Group, and report these to the Standing
Officers Committee. The Compensation Advisory Committee
has been established as an advisory body for the Board of
Directors to discuss remuneration for Directors.
The Company has set up a system to ensure that the ex-

Basic Concept Regarding Complianceecution of duties by board directors is compliant with laws
and regulations and with our Articles of Incorporation. (1) It
has put forth its corporate philosophy so that the Group cangrow as the optimal corporate entity and formulated the“TBS Group Code of Conduct” which serves as a basic pledge
to be observed by all officers and employees. The Company
has set the “TBS Group Action Standards” as standards towards the concrete implementation of this charter, and weare working to ensure thorough compliance with these. (2)The company has formulated the “TBS Group Basic Policy on
Information Disclosure” and is ensuring timely and appropriate disclosure of information, thus striving to fulfill theGroup’s accountability. (3) In response to inquiries from theBoard of Directors, the Special Committee for Corporate Value Evaluation comprising Company outside directors, auditors, and outside experts considers the suitability of policies
aimed at maximizing corporate value, and reports the resultsof deliberations to the Board of Directors.

Group Governance

The TBS Group is a media company, and as such is aware of its
public mission, and is expected to act with high levels of ethics
and responsibility. In our corporate activities, as well as complying with laws and regulations and refraining from any wrongdoing, we are constantly striving to act in a fair and upright manner in order that we remain a trusted company. In our broadcast
content, we are working to improve our sense of ethics in orderthat we do not betray the trust of viewers and listeners.

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

Internal Training and Seminars
The Division of Human Resources and Labor together with
the Compliance Department co-host compliance-related sem-

We have introduced the Group Executive Officer System forGroup companies with the aim of expeditiously implementing management strategies, and improving the effectivenessof their business execution. This fiscal year, the presidents ofsix core companies were appointed.
The Group Executive Committee of TBS Group has been
held twice a month since July 14, 2020, comprising directors

of TBS HOLDINGS, INC., Executive Officers responsible for theGroup and Group Executive Officers as a body for liaisingand consulting between companies, in order to supplement
the business execution of the President of TBS HOLDINGS,
INC. These meetings have been incorporated as a part of thecorporate governance system.

Overview of the “Policy on Responses to Takeover Bids for Company Shares”
At a TBS Board of Directors meeting held on February 28,
2007, the Company formulated a “Policy on Responses to
Takeover Bids for Company Shares.” At the ordinary general
meeting of shareholders held on June 28, 2007, this Policy
and its continued application were approved through theapproval of a majority of shareholders who were entitled toexercise their voting rights.
This policy was put in place in accordance with theCompanies 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 andregulations issued by the Tokyo Stock Exchange, and as a result of thorough consideration of the impact on shareholders’ rights and their exercising, and the impact of Company
shares on the market.
This policy is to be automatically renewed for a periodof three years unless there is a resolution to abolish it adopted at the ordinary general meeting of shareholders to beheld every three years.

58

TBS Group Integrated Report 2021

An important feature of takeover defense measures
is that as long as a purchasing group which has the intent
to acquire shares representing 20% or more of the voting
rights complies with the policy, a general meeting of shareholders shall in principle be held prior to the implementation of any takeover defense measures (measures to countertakeover bids), and shareholders will be entrusted with thedecision as to whether or not to implement such measures.
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 said countermeasures will not be implemented without waiting for the General Meeting of Shareholders to be convened.
Details of the Policy on Responses to Takeover Bids for
Company Shares are available on the TBS company website.

inars for not only new Group employees but also mid-levelstaff and managers.

Heightened Broadcast Ethics
In producing programming, the TBS Group creates fair andwholesome content that neither violates the Broadcasting Act
and the broadcasting standards of the National Association ofCommercial Broadcasters in Japan, nor loses the trust of ourviewers. We are constantly working to improve broadcast ethics not just at production venues, but also through ongoing
discussions at internal committees and regular meetings.

Internal Reporting Systems
The TBS Hotline has been established in order to purge any
sort of fraudulent activity on the part of the TBS Group.
This can be used by not only employees and staff of the TBS
Group, but also former employees and business partners toreport any wrongdoing that they 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 to 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 be taken in accordance with employment regulations.

About TBS Broadcasting Standards
TBS recognizes its social responsibility and the public mission inherent to broadcasting. This mission is to fully utilize the characteristics of media to promote and enhance culture, and to contribute to the realization of a peaceful and democratic world, a
better social environment, a better global environment, and public welfare. Based upon the principle that the airwaves belong
to the people, TBS shall respect basic human rights and public opinion, maintain a fair position, and ensure its autonomy, thereby
upholding freedom of expression, enhancing the social benefits from advertising and publicity, and meeting the expectations andtrust of the populace. To this end, TBS will organize broadcast programming that meets the following standards.
1. Ensures close cooperation with a wide range of broadcast companies and related parties within Japan and abroad, strives toenhance the content of broadcasts, and works to achieve mutualinternational understanding.
2. Broadcast programming shall cover the fields of news, culture,
education, arts, entertainment, sports, and advertising, and shall
strike a good balance taking into consideration the characteristicsof the media and broadcasting time.
3. Respects the opinions of the Council of Program Practice, and ensures that broadcast programming is appropriate.
4. Always understands public opinion and viewer requests, and reflects these in broadcast programming.

9. Educational programming shall enlighten viewers, enhance theirknowledge, and serve as a source of information in real life, andwhen making determinations regarding social issues. Medical
and academic programming shall be accurate, in line with scientific evidence, and take a measured tone.
10. When broadcasting educational programming, ensures that thecontent is beneficial and appropriate for the target audience,and that it is systematic and continuous.
11. Arts, sports, and entertainment programming should provide
wholesome enjoyment to viewers, enrich their lives, and enhance their development.

5. Understands the intentions of advertisers, and strives to improvethe effectiveness of advertising.

12. Children’s programming should foster a healthy common sense
and a sense of aesthetics, and not include material that may havea detrimental psychological effect.

6. Ensures a fair position regarding political, economic, and othersocial issues, and when there are conflicting opinions, clarify positions from as many points of view as possible.

13. Advertising shall be truthful, be in accordance with applicablelaws and regulations, and have a sense of responsibility towards
viewers.

7. Does not broadcast content that is counter to social decency orgood morals.

14. If programming is revealed to be untruthful, this shall be promptly corrected or canceled.

8. News programs that are free from interference, that deal withfacts in an objective, accurate, and fair manner, and that leverage
the characteristics of the airwaves to exhibit mobility and rapidity.
There shall be a distinction between news and opinion programming.

15. In addition to as set forth in these standards, JBA BroadcastingStandards shall apply correspondingly.

TBS Group Integrated Report 2021

59

Chapter 6

Initiatives to Support Value Creation

Risk Management
Group Internal Controls and Risk Management
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 in order to achieve appropriate and efficient businessexecution and to maintain and increase corporate value as acorporate group. The committee comprises the directors of
the Company and the Group, as well as outside committee
members (lawyers), and this is responsible for the following
matters.
1. Development, evaluation, and improvement of theinternal 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 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 meetssemiannually in April and November, and receives reports regarding risk management for that period.

Specific Methods for Risk Management
This committee identifies individual potential risks reported
from TBS HOLDINGS, INC. and Group companies and aggregates these based upon their degree of impact and their frequency with which these materialize. As well as working tovisualize risks, if a risk materializes, this makes efforts to control the risk by analyzing why this happened and putting inplace improvement measures within each 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 by customers,
stakeholders, society, and our employees.

Main Risks
Risks for the Media Content Business·
Reliance on advertising revenue from terrestrial
television broadcasting, and the risk of domestic
economic fluctuations
Revenue from terrestrial television broadcasting isclosely linked to the business performance of advertisers as well as consumer sentiment, and a senseof economic uncertainty means that customers are
moving their advertising costs from fixed to variable
expenditures.

Competition Between Media/
Competition in Acquiring Content
In addition to terrestrial broadcasting, there is morewidespread use of satellite (BS and CS), cable TV, andonline streaming services, and competition for viewers’ disposable time is intensifying. Sports content isseeing skyrocketing broadcast fees, with increasingly
intense competition to acquire quality content.

The TBS Group plans, produces, and invests in movies as well as owning two theaters in Tokyo at which
it plans, produces, and invests in theatrical productions, etc., but there is a risk that business income
may fall short of as planned due to unexpectedchanges in social conditions.

Availability of Usage of Copyrights andOther Intellectual Property Rights
In addition to content for terrestrial broadcasting,
the TBS Group also develops content for satellite
broadcast and delivery. When doing so, the Group
gives full consideration to the rights of the various
copyright holders, however if we are unable to receive usage rights from the rights holder, there is
the risk of broadcasting being halted, or of us beingsued for damages.

We are converting the core equipment that supports
our broadcast and streaming businesses over to general-purpose equipment. Accordingly, there is the riskof data loss from damage to storage media, as well as
the unexpected failure of developed software. Largescale software development carries with it the risk of
unexpected increases in development costs.

TBS Group Integrated Report 2021

The speed of technical innovation as well as changes to consumer needs have accelerated in recent
years, and the technologies and systems that wehave developed may become obsolete beyond our
initial expectations. Accordingly, it may be necessary
to reinvest more than originally planned, and there
are risks of impairment of non-current assets and increased depreciation costs.

Security Risks
Cyber attacks are becoming more sophisticated andadvanced, and various systems are facing increased
security risks every year. There are risks that new
security threats may come to light requiring major
investment in countermeasures, or that personal information may be leaked.

Handling of Personal Information, etc.
The TBS Group holds a large amount of personal information, and given increasingly sophisticated andadvanced cyber attacks, there is a risk of its leakage
or unauthorized usage. We take great care in thehandling of this information, and implement advanced security measures.

Impact of Legal Regulations
TBS is regulated by the Broadcasting Act and otherlaws as a Certified Broadcasting Holding Company
as stipulated by the Broadcasting Act*. Additionally,
the television broadcast business is regulated by theRadio Act, the Broadcasting Act, and other laws andregulations.
*Under the Broadcasting Act, the Company may refuse to enter or record
any foreign nationals, etc., in the shareholders’ register if they willcomprise one-fifth or more of the Company’s voting rights. Furthermore,
if the total percentage of the Company’s shares held by such foreign
nationals, etc., will exceed 33% of the voting rights, then said foreign
nationals, etc., will not have voting rights for that excess portion.

Lifestyle Business Risks
Investment in and Return from Film andEvent Business

Risks of Data Loss and Increased Costs
Associated with Capital Expenditures

60

Speed of Technical Innovation andChanging Needs

In addition to changes in consumer preferences andpurchasing behavior, skyrocketing distribution andproduction costs, the Lifestyle Business may also
suffer a decrease in profit opportunities as a resultof store closures or reduced operation hours, or ofa loss in inbound demand brought about by theissuance of emergency declarations because of the
spread of the COVID-19 pandemic.

Impact of the COVID-19 Pandemic
In addition to a significant decrease in advertising
revenue due to the COVID-19 pandemic, this also
had a major impact on the cancellation and postponement of production of programs, sports andother events, and sponsored events. The LifestyleBusiness was also significantly impacted in a rangeof ways, including restrictions on stores sales.

Real Estate Business Risks
The Group owns real estate for rent as well as otherassets. Due to the spread of infectious diseases, there
is a real possibility of a decline in profitability due tothe impact of tenant rent reductions or exemptions
resulting from facility closures and shortened hours.

Other Business Risks

Impact of Climate Change and Disasters
In the event of an actual or potential disaster, broadcasters are obligated under the Broadcasting Act toprovide information to prevent or mitigate damage.
The broadcast of special emergency news programs
should a disaster occur may cause scheduled advertising to be suspended, thus leading to a decrease
in revenue.

Changes in the market value of investment securities
may affect our business performance and financial
positions. In addition, investment securities with nomarket value are evaluated appropriately at the endof the fiscal year, however a deterioration in the performance of companies in which we invest meansthat impairment losses may affect business performance and financial position.

TBS Group Integrated Report 2021

61

Chapter 6

Initiatives to Support Value Creation

Dialogue Session Between Chairman andOutside Board Director
What is the level of governance at TBS?
Takeda Mr. Yagi, as you’vebeen involved with the management of many companies, including non-Japanesecompanies, how do you evaluate the extent of TBS’s governance?
TBS has a proper
Yagi
Nomination Committee and
Board of Auditors, which
provides a sense of formality, but to me discussions are more
important than formality. I feel TBS is conducting quality, substantial discussions, and therefore, the company has a highlevel of governance. I believe governance refers to the sounddevelopment of a company. Defensive governance, which
entails compliance and avoids illegal activities, is the basis.
However, I also personally feel there’s too much emphasis on
defense.
Seeing the current condition of fewer and fewer soundJapanese companies, I think TBS should probably put more
effort into “expansion.” I noticed that the TBS Group VISION

Yosuke Yagi

Shinji Takeda

Appointed independent outside Board Director of TBS HOLDINGS, INC. in June 2020
His main writings include Senryaku Jinji no Vision: Seido de Shibaru na, Story wo Katare(Vision for Strategic HR: Use Stories Rather Than Bureaucracy) and Mamori no Jinji Kara
Seme no Jinji he (Shifting from Defense HR to Proactive HR).

Chairman & Board Director, TBS HOLDINGS, INC.

In 2020, the TBS Group revamped its Board whereby one-third of its members are now outside directors aspart of its efforts to strengthen the Board’s effectiveness. At that time, incoming Outside Board Director,
Yosuke Yagi, and Chairman & Board Director, Shinji Takeda, sat down to discuss governance at TBS.

622030 and the TBS Group Medium-Term Management Plan
2023 have placed an emphasis on how to convey to stakeholders the message of perhaps not quite “proactive” but“we’d like to use these strengths of ours to further expand.”I believe it takes governance in doing so.
Takeda Are you saying that we should be more edgy if weare to focus on content as a group of creators?
Yagi Speaking of global expansion, this should not stopat taking Japanese-made content overseas, but rather more
actively appeal to the strengths and capabilities as Japanese
media. Don’t be satisfied with second best in viewer ratings;
always strive to be the best in Japan, but also realize there’s
the whole wide world ahead. Without this frame of mind,
TBS will not be able to embrace challenges.
As a in-house university, TBS Group University (TGU)(details on page 43) serves as a strong statement to show
intent of the company in terms of enhancing management
and governance. I believe people are the most important
intangible assets of a company. This comes across as a displayof intent to grow the comprehensive abilities of TBS, aside
from its financial assets.

The “people” and “top successor candidates” of TBS
Takeda What kind of people do you think are needed as successors to top management at TBS and each Group company?
Yagi No matter how much experience one has, if they do
only what’s told, they will not become someone who takes
the initiative on their own. I think the basis is thinking about
how to foster someone who has repeatedly asked themselves what they’d like to accomplish once they’ve reached
the top, and has come up with a resolution. I think TBS has

already taken off from that start line. Anyone would take ona challenge with over a 50% of success rate, but I think it isimportant to cultivate top candidates who possess a strong
conviction and decisive strengths to take on risks with only a
5% chance of success. I feel succession is having about threepeople in the candidate pool when it is time to replace thepresident. If TBS achieves this, it should be able to drastically
improve the quality of management.

TBS viewed from the outside and TBS viewed from the inside

Reasons for paying attention to brain science/AI and management

Takeda One year has passed since you were appointed Outside Board Director, Mr. Yagi. Has your view of TBS changed
during this time?
Yagi Yes, it has. I had a very flashy impression of the company since its part of the television industry, but since myappointment I’ve found that TBS is working diligently on anumber of things. I was surprised at the very serious discussions taking place. However, in terms of governance, I foundthat the company was very male-dominated with few women. Although, this is something that I expected.
Takeda This is one of our most important issues.
Yagi When you asked me (to become a Board Director) I
thought you were looking for a global viewpoint and I feellike TBS can globalize itself a little more.
Takeda I’m aware that our ratio of overseas sales is low evenafter adding StylingLife Holdings, Inc. to our corporate portfolio. We’ve held a number of discussions under TBS GroupVISION 2030 and cited “global” as one of the pillars of our
growth Strategies.

Takeda Mr. Yagi, I hear that you have become interested inbrain science lately.
Yagi That’s right. We are beginning to understand whenpeople feel motivated, and how to get more dopamine release as it comes with money, but also disappears fast. We arealso looking into how to handle and overcome unconscious
bias when it comes to promoting diversity and inclusion.
Besides brain science, I feel that companies won’t beable to thrive if it doesn’t incorporate what is known about
things like AI into the management. Companies are paying
attention to how to develop deep learning* and to apply it
in management. Some companies in the U.S. have alreadystarted this. While TBS utilizes AI for what it is good at, it isimportant to distinguish our management by identifying the

TBS Group Integrated Report 2021

Yagi When I lived abroad I found that there was a lack ofoptions in terms of Japanese broadcasters, so I felt like I wanted to change this situation. Today, Japan is losing its confidence, but more than three centuries ago Japan came up
with the concept of “sanpo-yoshi (three-way satisfaction),”which advocated benefits to the seller, buyer and local community. This shares similarities with the SDGs today. Japanesecompanies have good qualities that should be showcased to
the world and I really hope that TBS can pave the way in thefield of media.
Takeda Conversely, do you feel there are any “vestiges of abygone area” within TBS?
Yagi Having participated in board meetings, I feel like thediscussions are a little bland. The board is very diverse, so discussions should be livelier, more open and franker. Outside
Board Members contribute to discussions without hesitation,
so if we can communicate more effectively with Internal
Board Directors, it will be very beneficial in terms of governance.

values unique to people, as
something that AI cannot
achieve.
In this day and age, aleader cannot make decisions on their own. Therefore, it is important to develop a culture where each
employee focuses on thelatest happenings in theworld with a sense of curiosity and fosters open discussion
and communication. It is crucial for the leadership of each
person and the decision making from top management to
fit together well.

* Deep learning: The technology of automatically identifying features from a large amount of data by a computer without human manual processing. This is the corealgorithm of artificial intelligence (AI). Applications that apply to non-numerical data, such as image classification, voice recognition, object detection, and content
description, have been put into practical use in many fields, while research and implementation are also in progress in business.
This dialogue was conducted and recorded on Monday, May 17, 2021. The transcription is provided using Mojiko (details on page 45), an AI-voice recognition-basedtranscription system developed by TBS.

TBS Group Integrated Report 2021

63

Chapter 7

Business Results and Company Information

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

Figure 1 Net sales

Performance Highlights(Billions of yen)

During FY2020, the Japanese economy experienced a significant impact from the COVID-19 pandemic worldwide, andbusiness conditions deteriorated rapidly after the declarationof a state of emergency in April. After the declaration was
lifted in May, the economy showed some signs of recovery
supported by the Japanese government’s financial measures.
However, the infection spread again in January, and the stateof emergency has been declared several times since then,thus the outlook still remains uncertain.
Under such circumstances, total advertising expendituresin Japan amounted to ¥6,159.4 billion (down 11.2% year onyear), marking the first negative growth in nine years since2011, the year of the Great East Japan Earthquake (basedon “Japan’s advertising expenditures for calendar 2020,”
released by Dentsu). Of which, terrestrial TV advertising expenditures accounted for ¥1,538.6 billion (down 11.3% year
on year), satellite media-related expenditures accounted for¥117.3 billion (down 7.4% year on year), and radio advertising expenditures accounted for ¥106.6 billion (down 15.4%（単位入ル）
year on year). On the other hand, online advertising expenditures increased from the previous year to ¥2,229 billion (up20,0005.9% year on year).
The TV advertising market remained very challenging,
15,000with spot advertising expenditures in the Kanto region at a
10,000
year-on-year rate of 86.4%.
Against this backdrop, the TBS Group’s consolidated net
sales for FY2020 ( Figure 1 ) totaled ¥325.682 billion (down 8.7%5,000
year on year) due to a significant decrease in time and spot
commercial sales revenue. In addition, the infection spread 0of COVID-19 has led to the cancellation, postponement, andrestricted admission of events, resulting in a decrease in box
office sales.
Operating expenses (sum of cost of sales and selling,
general and administrative expenses) totaled ¥314.840 billion (down 8.4% year on year) due to a reactionary decline
in production costs and broadcasting rights fees related to
one-off major sports events in the previous fiscal year and a（単位入ル）
decrease in advertising agency commissions.
As a result, operating profit ( Figure 2 ) reached ¥10.841
20,000billion (down 17.3% year on year). Ordinary income totaled¥19.233 billion (down 9.6% year on year), mainly due to a
15,000decrease of dividends received, and net income attributableto owners of parent ( Figure 3 ) totaled ¥28.072 billion (down
10,0007.0% year on year), mainly due to a gain on sales of investment securities as extraordinary income.
5,000

0

64

TBS Group Integrated Report 2021

380

360

361.9

366.3
356.7

355.3

340
325.6
320

0

/3
17
20

/3
18
20

/3
19
20

/3
20
20

/3
21
20

Figure 2 Operating profit/
Ratio of operating profit to net sales
Operating profit

5.6(Billions of yen)

5.2

25
20

19.8

18.8

5.1

18.5

15

(%)

5.0
3.7
13.1

10

3.3

4.0
3.0

10.8

2.0
1.0

5
0

Ratio

/3
17
20

/3
18
20

/3
19
20

/3
20
20

/3
21
20

0.0

Figure 3 Net income attributable to owners of parent/
Ratio of net income to net sales
Net income attributable to owners of parent(Billions of yen)

(%)

40

8.5
32
24

0

8.6

4.5

6.0

4.7
25.2

16.1

17.1

/3
17
20

/3
18
20

10.0
8.0

6.9

16
8

Ratio

30.1

28.0

4.0
2.0

/3
19
20

/3
20
20

/3
21
20

Performance by Segment
Net sales of BS-TBS, INC. for FY2020 decreased ¥1.475
billion to ¥15.374 billion (down 8.8% year on year) due to◆ Media Content Business Segment
The Media Content Business segment reported net sales ofa decline in one-off sports event programs impacted by the¥253.778 billion (down 6.1% year on year) and operating
spread of COVID-19 and sluggish regular sales.
profit of ¥2.881 billion (up 19.6% year on year) in FY2020
Net sales of TBS RADIO, Inc. for FY2020 decreased ¥1.074( Figure 4 ).
billion to ¥8.492 billion (down 11.2% year on year) in the
midst of a difficult radio advertising market.
Net sales in the Television division of TOKYO BROADIn terms of expenses, in addition to a significant decrease
CASTING SYSTEM TELEVISION, INC. for FY2020 decreased
in production costs due to the cancellation or postponement¥13.936 billion to ¥168.147 billion (down 7.7% year on year).
of program recordings as a result of the spread of COVID-19,
Of these, time sales revenue totaled ¥78.467 billion (downthe business division also saw a decrease in expenses due to
10.0% year on year), spot sales revenue totaled ¥69.879 bilthe cancellation of events and performances.
lion (down 11.9% year on year), and content sales revenue,
As a result, operating profit ( Figure 4 ) in the segment
which advertising revenue earned through domestic broadincreased ¥471 million to ¥2.881 billion (up 19.6% year on
cast syndication and free video streaming, totaled ¥15.870year).
billion (up 45.7% year on year). In terms of time revenue,
in addition to the reaction to “IAAF World Championships
Doha 2019” in the previous year, sales declined significantly
Share of consolidated net sales by segment (FY2020)
due to a series of cancellations and postponements of largescale one-off events, mainly sports programs, led by the(Billions of yen)
postponement of “Tokyo 2020 Olympic Games” due to the
spread of COVID-19, as well as sluggish regular sales. In the（単位入ル） Real Estate and Other Business15.9
spot advertising market, the share of five stations increased
5％
20,000
to 19.7% (up 0.4 points year on year), but the market conditions remained harsh, as advertisers in the Kanto area
17％
15,000dropped 13.6% from the previous year, resulting in a yearLifestyle Businesson-year decline. Content revenue saw a significant increase 10,000
Media
55.9
Content
in both free and paid video streaming, capturing the deBusiness78％
mand for “stay-at-home” that has increased due to changes 5,000
253.7
in lifestyles since the declaration of a state of emergency.
0
Net sales in the business division of TOKYO BROADCASTING SYSTEM TELEVISION, INC. for FY2020 decreased ¥6.862
billion to ¥18.441 billion (down 27.1% year on year).
For events, concerts and stage performances, sales decreased significantly due to continued admission restrictions
Figure 4 Net sales/Operating profit by segment
as a measure against the spread of COVID-19 even after the(Media Content Business)declaration was lifted. In the film business, Threads - Our
Net sales to external customers
Operating profit
Tapestry of Love and the Hinatazaka46 documentary Movie:
Debut after 3 years had a long run, but the sales fell short(Billionsofyen)(Billions of yen)
（単位入ル）
9.0
290
of the revenue scale compared to the year-ago period. In
7.8
the overseas business, although there were some signs of im20,000
280
7.2
provement in market conditions, mainly in the Asian market,
sales dropped as market conditions remained severe.
15,000270
5.4
In the media business, sales increased in the CS businessthanks to improved channel unit prices from various plat10,000
3.6
260
278.1
2.8
forms, but, overall sales decreased due to the transfer of the
2.4
5,000
streaming business to the Television division. The licensing
250
1.8
270.2
business recorded an increase in sales thanks to strong de253.7
mand for shopping programs and DVDs, and hit products 000related to high-rating dramas such as MIU404.
/3
0/3
9/3
21
1
20

2
20

20

0.0

TBS Group Integrated Report 2021

65

Chapter 7

Business Results and Company Information

Analysis of Financial Position and Business Results (MD&A)◆ Lifestyle Business Segment
The Lifestyle Business segment reported net sales of ¥55.983
billion (down 20.0% year on year) and operating profit of¥281 million (down 89.8% year on year) in FY2020 ( Figure 5 ).
（単位入ル）
StylingLife Group saw increases in both sales and profit
in the mail-order business LightUp Shopping Club Inc. thanks
20,000to the expansion of demand for stay-at-home. However,both sales and profits decreased significantly due to the sig15,000
nificant impact of temporary closures and shortened business hours at stores in the core retail business, PLAZASTYLE
10,000
COMPANY.
5,000◆ Real Estate and Other Business Segment
The Real Estate and Other Business segment reported net
sales of ¥15.920 billion (down 3.6% year on year), and operating profit of ¥7.679 billion (down 3.3% year on year) in
FY2020 ( Figure 6 ).
Looking at income, sales decreased due to a drop in
the occupancy of Akasaka Biz Tower caused by the infection spread of COVID-19. As for expenses, profit decreased
although expenses remained under control by shortening
business hours.

0[Financial Position]

Figure 5 Net sales/Operating profit by segment(Lifestyle Business)
Net sales to external customers

Operating profit(Billions of yen)

75

(Billions of yen)

2.8

3.0

2.7

70

2.4

65

1.8

60

71.8

70.0

55
0

1.2
0.6

0.2
/3
19
20

/3
20
20

55.9

0

/3
21
20

Figure 6 Net sales/Operating profit by segment(Real Estate and Other Business)
Net sales to external customers（単位入ル）
20,00015,00010,0005,000
0Operating profit(Billions of yen)(Billions of yen)

17.0

16.5

7.8

7.7
7.6

16.0
15.5

16.2

16.5

/3
19
20

/3
20
20

7.6
7.4

15.9

15.0
0

8.0

7.9

/3
21
20

7.2
0

Figure 7 Total assets/Net assets

Total assets at the end of FY2020 ( Figure 7 ) stood at ¥1,100.223
billion, an increase of ¥317.199 billion compared to the endof FY2019. Factors were that cash and deposits increased by¥30.702 billion, property, plant and equipment increased by¥21.213 billion mainly due to an increase in land, while investment securities increased by ¥266.615 billion mainly due
to an increase in unrealized gains on shares held.
Total liabilities stood at ¥305.338 billion, an increase of¥114.245 billion compared to the end of FY2019. Factors
were that income taxes payable increased by ¥5.891 billion,
long-term loans payable (including the current portion)
increased by ¥25.8 billion due to the financing and repayment of borrowings, and deferred tax liabilities increased by¥83.731 billion due to an increase in the fair value of shares
held, while accounts payable decreased by ¥2.071 billion.
Total net assets stood at ¥794.884 billion, an increaseof ¥202.953 billion compared to the end of FY2019. Factors
were that retained earnings increased by ¥22.572 billion because of the recording of net income attributable to owners（単位入ル）of parent and payment of dividends as well as valuation difference on available-for-sale securities increased by ¥182.609
20,000billion.
15,000As a result, the equity ratio ( Figure 8 ) reached 71.0%, andnet assets per share equaled ¥4,575.61.

Total assets

1,200

800

600.9

517.4

794.8

783.0

601.2

591.9

200
0

/3
17
20

/3
18
20

/3
19
20

/3
20
20

/3
21
20

Figure 8 Equity ratio
(%)

75

73.9

74
73.2

73
72
71

0

0

Cash Flows from Operating Activities
Net cash provided by operating activities ( Figure 9 ) stood at¥22.713 billion (compared to ¥21.406 billion provided in theprevious fiscal year). Positive factors included income before
income taxes of ¥44.176 billion, depreciation of ¥14.751
billion, and interest and dividend income of ¥8.872 billion,
while negative factors included gain on sales of investment（単位入ル）
securities of ¥29.751 billion and income taxes paid of ¥14.062
billion.
20,000

71.1

71.2

/3
17
20

/3
18
20

71.0

/3
19
20

/3
20
20

/3
21
20

Figure 9 Cash flows from each activity
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities(Billions of yen)

40
30
20

15,00010

10,000-10

0

TBS Group Integrated Report 2021

798.4

400

5,000

66

821.7
707.0

600

5,000

Cash and cash equivalents at the end of FY2020 totaled¥116.061 billion, an increase of ¥31.002 billion compared tothe end of FY2019. Each cash flow and their factors were as
follows:

1,100.2

1,000

10,000[Cash Flows]

Total net assets(Billions of yen)

0
-20
-30

36.4

35.5

-10.0

-14.0

-36.7

35.2

-21.5

-7.7

/3
17
20

16.8

21.4

22.7

-14.2

-8.6

-24.3

-40
-50

5.9

/3
18
20

/3
19
20

/3
20
20

/3
21
20

TBS Group Integrated Report 2021

67

Chapter 7

Business Results and Company Information

Analysis of Financial Position and Business Results (MD&A)[Capital Expenditures]

Cash Flows from Investing Activities
Net cash used in investing activities ( Figure 9 ) stood at ¥8.618
billion (compared to ¥5.962 billion provided in the previous
fiscal year). Major factors included proceeds from sales ofinvestment securities of ¥33.05 billion, purchase of property, plant and equipment of ¥38.814 billion, and purchase ofshares in subsidiaries and associates of ¥3.026 billion.

Capital expenditures for FY2020 ( Figure 10 ) which include intangible assets but exclude asset retirement obligations, totaled¥39.946 billion. Capital expenditures by reportable segment
were as follows:◆ Media Content Business
Capital expenditures totaled ¥6.481 billion.
Major items included ¥2.243 billion in broadcasting
equipment for TBS Broadcast Center, including studio equipment for TBS Television, ¥600 million in shopping systemconstruction for TBS GLOWDIA, Inc., and renewal of othergeneral facilities.
There was no disposal or sale of important facilities in
FY2020.

Cash Flows from Financing Activities
Net cash provided by financing activities ( Figure 9 ) stood at¥16.898 billion (compared to ¥14.202 billion used in the previous fiscal year). Major factors included proceeds from longterm loans payable of ¥27 billion, repayment of long-termloans payable of ¥1.2 billion, purchase of treasury shares of¥2.605 billion, and cash dividends paid of ¥5.491 billion.

◆Lifestyle Business
Capital expenditures totaled ¥480 million.
Major items included ¥362 million for store facilities of
PLAZASTYLE COMPANY, and renewal of other general facilities.
There was no a disposal or sale of important facilities in
FY2020.

◆Lifestyle BusinessWe 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 productconcepts. As for basic research, we are primarily engaged in
the development of new raw materials. We also conduct joint
research with external research organizations to ensure theeffective application of advanced research.
R&D expenses totaled ¥141 million.

◆Real Estate and Other Business
Capital expenditures totaled ¥32.984 billion.
Major items include ¥29.61 billion related to TBS’s Akasaka Entertainment City Plan, ¥2.003 billion for the renewal
of TBS Broadcast Center access equipment, and renewal ofother general facilities.
There was no disposal or sale of important facilities in
FY2020.

◆Real Estate and Other Business
There was no specific research and development activity.

R&D expenses by segment[Financing]
Cash flows from operating activities for FY2020 exceededthat of the previous year by ¥1.3 billion, with ¥33 billion inproceeds from sales of investment securities and ¥27 billion
in proceeds from long-term loans payable. In addition, cashon hand increased by ¥31 billion due to the posting of ¥38.8（単位入ル）
billion in purchase of property, plant and equipment. Shortterm capital expenditures and strategic investments are now20,000
expected to be financed by cash on hand and full-year operating cash flows.
15,00010,0005,000
068TBS Group Integrated Report 2021

[Research & Development]

Figure 10 Capital expenditures by segment

Lifestyle BusinessMedia Content Business
Lifestyle Business（％）
Real Estate and Other Business(Billions of yen)

45

36
27

32.9

18
10.9
9
0

1.0
7.9

6.4

/3
20
20

/3
21
20

Media Content Business

0.4

The TBS Group devotes its lifework to providing high-quality（単位入ル）and diverse services to the people over the public airwaves.
In addition, we are researching and developing new program
20,000production, transmission, and broadcasting technologies tocontribute to the practical use of next-generation digital15,000
broadcasting.
The R&D activities by reportable segment for FY202010,000
were as follows:◆Media Content BusinessOur main R&D activities include developing (1) a remote presence system using a conference system development framework, (2) a 3D/CG system and viewing web application using
aerial photogrammetry, and (3) a live broadcasting subtitlingsystem using voice recognition AI technology and touch panel operation. As for (1) in particular, the system provides real-time and highly flexible production for remote presence
on programs. As such, we expect that it will be of great use
in the future as a new type of entertainment solution for theWith and Post COVID-19 era.
R&D expenses totaled ¥43 million.

5,000
0

（％）

(Millions of yen)

250

200
150

153
141

100
50
0

74
/3
20
20

43
/3
21
20

TBS Group Integrated Report 2021

69

Chapter 7

Business Results and Company Information

Financial and Non-Financial Data for the Past 10 Years
Millions of yen

2012/3

2013/3

2014/3

2016/3

2015/32017/3

2018/3

2019/32020/32021/3

Consolidated Financial Data
Fiscal Year:346,538
102,451
90,288
12,162
14,313
11,671
30,072(5,731)(16,993)
24,341

352,351
107,164
90,975
16,18817,671
9,173
28,156(13,649)(25,475)
14,507354,338
108,839
93,142
15,69618,096
9,644
23,038(11,326)(23,567)
11,712

347,817106,665
90,936
15,72818,915
12,811
27,851(2,326)(25,242)
25,525348,539
107,072
89,893
17,17922,67814,49732,337(8,956)(5,326)23,381

355,363
113,296
93,417
19,87826,207
16,13636,485(10,078)(36,718)
26,407361,954
113,750
94,94918,80026,923
17,18235,536(14,028)(7,730)21,508366,353
115,728
97,156
18,572
28,83525,20535,215(21,588)(24,387)
13,627356,796
107,008
93,904
13,103
21,27430,174
21,406
5,962(14,202)27,368

325,682
95,41884,576
10,841
19,23328,072
22,713(8,618)16,89814,095555,159
146,368
78,801
408,790
232,561
95,156
137,405
322,597559,626
139,130
68,031
420,496
215,152
96,090119,062
344,473

579,039
130,262
56,312448,777
193,068
83,117
109,951
385,971653,732
131,127
56,728522,604
197,61363,072
134,541
456,118

649,970
149,478
74,734500,492
191,762
95,27896,483458,208

707,063
145,479
67,391
561,583
189,633
77,231
112,402517,430

821,737
155,660
81,129666,076
220,786
93,382
127,403
600,950

798,481
144,192
72,033654,289
197,189
80,099117,090
601,291

783,024
158,800
85,059624,223
191,093
81,021110,072
591,931

1,100,223
190,053
116,061
910,170
305,338
86,176219,162
794,884

1.1
57.8
3.5
3.4
3.6
2.5
55.5
0.6
16.5
20.1

1.7
33.1
4.6
2.6
2.9
3.2
58.7
0.6
23.4
29.9

0.6
(3.0)
4.4
2.7
2.8
3.2
63.3
0.6
19.5
31.0

(1.8)
0.2
4.5
3.7
3.2
3.1
66.7
0.5
19.2
27.8

0.2
9.2
4.9
4.2
3.3
3.5
68.3
0.5
21.0
30.1

2.0
15.7
5.6
4.5
3.4
3.9
71.1
0.5
21.5
30.3

1.9
(5.4)
5.2
4.7
3.2
3.5
71.2
0.5
22.9
30.5

1.2
(1.2)
5.1
6.9
4.3
3.6
73.2
0.5
14.0
22.9

(2.6)
(29.4)
3.7
8.5
5.2
2.7
73.9
0.5
8.7
17.2

(8.7)
(17.3)
3.3
8.6
4.1
2.0
71.0
0.4
13.2
18.3

15.00
74.71
2,025.89

18.00
60.27
2,158.00

19.00
61.22
2,263.65

22.00
79.12
2,689.56

25.00
83.12
2,545.60

28.00
92.46
2,878.29

30.00
98.38
3,349.52

33.00
144.31
3,347.03

30.00
173.283,356.30

30.00
164.32
4,575.61

5,271
27,242
4,554
14.3
71.6
102,090
118,840
ー
ー
9.9

5,234
26,952
4,844
15.2
73.7
100,392
109,322
ー
ー
9.7

5,634
26,019
5,777
18.2
72.7
103,508
115,897
ー
ー
10.2

5,585
25,336
6,460
20.3
72.2
98,972102,169
ー
ー
10.1

5,641
24,525
7,271
22.9
67.5
97,322
106,967
ー
ー
10.4

5,610
24,123
7,673
24.1
67.8
80,258102,376
ー
ー
11.2

5,552
23,235
8,561
26.9
70.7
73,55896,064
ー
ー
11.4

6,090
21,916
9,880
31.1
68.4
73,84099,032
7.5
100.0
12.5

6,155
20,054
11,74236.9
71.3
74,75996,254
18.2
100.0
13.2

6,134
18,267
13,52942.5
72.3
53,85575,526

Net sales
Gross profit
Selling, general and administrative expenses
Operating profit
Ordinary income
Net income attributable to owners of parent
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Free cash flows
At year-end:
Total assets
Current assets
Cash and cash equivalents at end of period
Non-current assets
Liability
Current liabilities
Non-current liabilities
Net assets
Key Performance Indicators (%)
Net sales growth rate
Operating profit growth rate
Ratio of operating profit to net sales
Net income attributable to owners of parent
ROE
ROA
Equity ratio
Total assets turnover
PER
Payout ratio
Per Share Data (yen)Annual dividend per share
EPS
BPS

Non-financial Data
Number of employees (Year-end)
CO2 emissions (tons)*
CO2 reduction (tons)*
CO2 reduction rate (%)*
Recycling rate (%)*
Tap water usage (m3)*Groundwater usage (m3)*Percentage of male employees taking childcare leave (%)**
Percentage of female employees taking childcare leave (%)**
Ratio of female managers (%)***

13.5*Only in TBS Broadcast Center (Broadcast Center + Cultural Facilities Building)** TBS HOLDINGS, INC. + TOKYO BROADCASTING SYSTEM TELEVISION, INC.
*** As of February 1, TOKYO BROADCASTING SYSTEM TELEVISION, INC.

70

TBS Group Integrated Report 2021

TBS Group Integrated Report 2021

71

Chapter 7

Business Results and Company Information

Company and Investor Information
Company Profile (as of March 31, 2021)

Stock Information
Major Shareholders (March 31, 2021)

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)

6,134

Number of Shares Held(thousand)

Percentage (%)*

The Master Trust Bank of Japan, Ltd.

21,369

12.51

Custody Bank of Japan, Ltd.

15,3849.00

MBS Media Holdings, Inc.

8,848

5.18

Mitsui Fudosan Co., Ltd.

5,713

3.34

NTT DOCOMO, INC.

5,713

3.34

Nippon Life Insurance Company (Standing agent: The Master Trust Bank of Japan, Ltd.)

5,006

2.93

Mitsui Fudosan Co., Ltd. (Standing agent: Custody Bank of Japan, Ltd.)

4,288

2.51

BIC CAMERA INC.

4,190

2.45

Panasonic Corporation

3,813

2.23

Kodansha Ltd.

3,771

2.20

Shareholder Name

Total Number of Shares Issued 174,709,837 shares (including treasury stock)
Minimum

100 Shares

Number of Shareholders

10,789

ListingFirst Section of Tokyo Stock Exchange

Closing Date

March 31

Ordinary General Meeting of
Shareholders

Held in June

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

Percentage of Shares Held
● Individuals/Others・
6.41%● Domestic financial institutions・
27.81%● Foreign companies, etc.・

14.28%

External Assessments

Number ofshareholders

10,789AwardsPrograms and Services

Name of Award
Progress and Development Award, Institute of Image Information and Television Engineers● Financial instruments business operator・

1.53%● Other companies・

49.97%

Technical Development Award, Motion Picture and Television Engineering Society of Japan
Mojiko (Transcription web editor)

Minister of Economy, Trade and Industry Award; Motion Picture and Television Engineering
Society of Japan Award
2020 Information Technology Award (Management Area)

72

Trends in Share Price (yen)The 61st Japan Record Awards, Staging with LiDAR Sensors

Content Technology Award, Institute of Image Information and Television Engineers

3,000

Development of the TBS MEDIABOX System

Technology Committee, Japan Commercial Broadcasters Association Award for excellence
program

2,500

Harusuke (Digital signage software)2020 Information Technology Award (Collaboration Area)

2,000News documentary, SCRATCH: Discrimination in the Heisei era(TBS Radio, RKB Mainichi Broadcasting System)

Special Jury Award, Asia-Pacific Broadcasting Union (ABU)

1,500

Branding Initiatives at TBS

Japan Branding Awards 2020 Winners

1,000

Sunday Theater, NAOKI HANZAWA

AMD Award, Association of Media in Digital, 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

JAPAN NEWS NETWORK, 40 Years of History and the Future

Press Activity Division Committee, The Galaxy Grand Prix for the best program

Friday Drama, Story of My Family (TBS Television, TBS SPARKLE, Inc.)

TV Division Committee, Galaxy Awards for outstanding programs

Friday Drama, MIU404 (TBS Television, TBS SPARKLE, Inc.)

TV Division Committee, Galaxy Awards for programs highly recommended

TBS Group Integrated Report 2021

500
0

2016

2017

2016

2018

2017

2019

2018

2020

2019

(FY)

2020

Total shareholder return (%)

115.6

132.7

121.4

93.2

133.2

Max. (yen)

2,106

2,920

2,573

2,183

2,470

Min. (yen)

1,265

1,825

1,612

1,232

1,390

TBS Group Integrated Report 202173

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

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