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 E
 xpand 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