TBS GROUPI NTEGRATED REPORT
2023

01

02

TBS Group at a Glance
Businesses ranging from broadcasting to content creation, culture, lifestyle, and real estate

Revenue and operating income by segment
FY2022
New Family Core viewer ratings (ages 4-49)¥16.5 billion

Fiscal year ended March 2023

¥66.3 billion¥6.7 billion¥10.9 billion¥3.0 billion¥285.2 billion■ Consolidated revenue¥368.1 billion■ Consolidated operating
income¥20.7 billion

Lifestyle
Real estate and other

Media and Content, realestate, other (1 company)
TBS TELEVISION, INC.

Golden/Prime: 2ndGolden (7 p.m.-10 p.m.) 3.1%
Prime (7 p.m.-11 p.m.) 3.0%

StylingLife Group FY2022 performance
Revenue

Operating income¥66.4 billion¥3.7 billion

and set a new record highNote: R evenue (outer circle) is revenue from external customers
Operating income (inner circle) is segment income

Media and Content business (13 companies)
TBS RADIO, Inc.

CS-TBS, INC.

BS-TBS, INC.

SEVEN-ARCS Co., Ltd.

TBS MEDIA RESEARCHINSTITUTE Inc.

TBS GLOWDIA, Inc.

TC Entertainment
Incorporated

NICHION, INC.

TBS ACT, INC.

TBS International, Inc.

THE SEVEN, Inc.

TBS SPARKLE, Inc.

MANGA BOX Co., Ltd.

Streaming advertising
revenue

Paid streaming
revenue+16.4%+43.5%

4/4/2022 - 4/2/2023 weekly basis
Data by Video Research Ltd. in the Kanto region

Operating income was higher than
the standard before COVID-19

Media and Content

Streaming business
FY2022 performance (year on year)

Real estate managed by the TBS GroupTBS Broadcast Center, Akasaka Biz Tower,
Akasaka The Residence, TBS Akasaka ACT theater,
The Hexagon, Midoriyama Studio City, Inc., etc.

Akasaka 2-chome and 6-chome Development Plan
Construction companies determined(Kajima Corporation, Obayashi Corporation)
Construction is steadily under way for completion in 2028

Lifestyle business (7 companies)
StylingLife Holdings Inc.
CP Cosmetics Inc.
LightUp Shopping Club Inc.
YARUKI Switch Group Holdings Co., Ltd.
3 other Group companies (became consolidated
subsidiaries on June 29, 2023)

Real estate and otherbusinesses (5 companies)
Akasaka Heat Supply Co., Ltd.
TBS Kikaku Co., Ltd.
TBS Sunwork, Inc.
TBS HEXA. Inc.
Midoriyama Studio City, Inc.

03

Contents (Overall Report Structure)
The TBS Group has positioned maximizing Content LTV (customer lifetime value) as the highest priority topic to be tackled at the moment.
Content LTV is a total of the profit generated from the number of wonderful “moments” occupied by content in a customer’s lifetime.
This report was structured from the viewpoint of enhancing our corporate value by maximizing this value.
p.01

p.01

Introduction
Strategy for
maximizing
Content LTV(customer
lifetime value)

p.13

Vision and Medium-Term
Management Plan

p.43

Corporate Philosophy
Brand Promise

Value Creation Story

Content Innovation & Technology

p.44

p.45

p.47

Human Capital & Human Rights

Structures forContinuously
Maximizing
Content LTV

p.86

Overview of Intellectual
CapitalHuman CapitalManagement Overview

Overview

p.95

p.110

Performance & Corporate
Information

TBS Group over FY2022

p.25

Materiality and KPIsI

p.08

What is Content LTV

Message from the
President

p.28

Messagefrom the Director of
Financial Strategy(customer lifetime value)
p.34

Messagefrom the Director of
ESG Strategy

p.35

Social Mission

p.40

Dialogue
between the Chairman
and an Outside Director

It is a total of the profit
generated from the number of
select moments occupied bycontent in a customer’s lifetime.

p.49

Media and Content

Lifestyle

Real Estate and Other

Maximizing Content LTV(customer lifetime value)

p.62

Intellectual Capital
IP Business

p.76

Human Resource
Development Policy

p.88

p.87

Management Structure2023 Medium-Term
Management Plan

p.07

p.54

Growth Trajectory

The Global Environment

p.93

Data Information

Overview

p.75

p.74

Integrated Report
2023 Topics

p.20

p.61

p.60

p.05

p.17 Dialogue
between the Directors ofCompetitive Strategy and
Growth Strategy

p.52

p.51

TBS at a Glance

Value Creation Process
VISION 2030

p.14

Strategies for Business

Create andexpand thevalue of content
to maximize
Content LTV

p.03

Board of Directors andAuditors

p.111

TCFD
Carbon Neutrality

p.99

Governance Structure
Effectiveness

p.117

MD&A

Financial Data

p.66

p.67

Overview of
Manufactured Capital

Manufactured Capital
Facilities & Infrastructure

p.81

p.85

Internal Environment
Development Policy

p.69

Manufactured Capital
Technology & Structure

We will aim
to increase ourcorporate andsocial value

p.71

Social Capitalby maximizing
Content LTV

Human Rights

p.92

Biodiversity

Editorial Policy
p.100

p.101

Officers’ Compensation

Cross-Shareholdings
Takeover Defense Measures

p.118

p.119

Non-Financial Data

Company & Investor
Information

p.102

Sustainability Promotion

p.103

Compliance

p.106

Risk Management
Risk Information

While the report covers the TBS Group from April 2022 to March 2023
in principle, events before and after this period are also included todescribe important and current matters. In compiling the report, we referred to disclosure indicators such as the Value Reporting Foundation’sInternational Integrated Reporting Framework, Ministry of Economy,
Trade and Industry’s Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogue for Collaborative Value Creation, and theTask Force on Climate-related Financial Disclosures (TCFD).

04

TBS Group Integrated Report 2023 New Topics
Topic 01

Topic 02

Topic 03

Progress of Initiatives for
Maximizing Content LTV

Clarified Position of
Akasaka Entertainment Cityin Our Value Creation

TBS Group
Clarification of Human
Capital Management

The grand theme of the entire Group is “Maximizing Content LTV (customer lifetime value).” We
have written in detail about projects such as theintroduction of TBS Group IDs and Content IDs as
initiatives to pave the way for achieving this goal.

Akasaka Entertainment City is simultaneously aplace where content is created and a place wherevisitors can enjoy content. We explain how this urban development is connected to the achievementof VISION 2030. →p.16

Content creation is the source of increased corporate value for the TBS Group. At its foundation is“people,” and therefore to communicate the competitive superiority of the intangible assets known
as “TBS’s people,” we have formulated a Human
Capital Management Philosophy and attendant
strategy, measures and KPIs. →p.75→p.06 →p.54

05

What It Means to Maximize Content LTV

Developing Content That More People Love More Deeply for a Longer TimeIn the past, almost all the content TBS produced was in
the form of programs for terrestrial broadcast. However,that era is already past. That is why we define the total
profit generated across the various business areas fromthe number of select moments occupied by content in acustomer’s lifetime as “Content LTV (customer lifetime
value)” and aim to maximize that value.

Content LTV
The total profit generated from the number of select moments
occupied by content in a customer’s lifetime
Centralized management ofcontent profit and loss*1

Expand = Produce Businesses
Content deployment variations
Increase platforms for potential
deployment

CreateCreate = Produce creative work
Promote the creation of original IP(intellectual property) by developing
and acquiring creators

ExpandCompetitive strategies

Enhancebroadcastingvalue

Growth strategies

Materiality

Expand/Digital/
Global/Experience

Ability to reach
Increase the latent ability of all content
to be deployed on multiple platforms

Overwhelming Trust

Prepare the world’s most advanced
production environment at the newMidoriyama Studio and other places

Data-driven marketing*2*1 Optimize all content in the TBS Group by centrally managing content financial indicators (sales, cost prices, profit, etc.) across businesses and making investment decisions.
*2 Optimize content individually by using non-financial indicators (number of new users acquired, etc.) to verify the effects of measures

06

The TBS Group over FY2022
Accelerate the sowing of seeds for VISION 2030 in order to deliver wonderful “moments”
Major Press Releases (dates show the day the release was announced)
April 11

April 18

Real time streaming of terrestrial
broadcasts
begins on TVer.

July 8

Launch of “TBS NEWS DIG powered
by JNN,” a comprehensive news sitefrom 28 JNN affiliate stations.

April 13

July 19

BS-TBS’s “Style 2030”
becomes the first Japanese commercial
TV program to receive albertcertification.

2022

April

July 20“Harry Potter and the Cursed Child”
stage play opens in Tokyo

May 13June
May 17

TBS Group Updated Medium-Term
Management Plan 2023 announced

July

AugustStudio TooN established as a newcompany for producing vertical
scrolling digital manga (webtoons)

110
105

Stock pricechanges

September

January 27

October 31

OctoberNovember“XR Studio at World Athletics Championships in Oregon”
wins the Award of Excellence of the Digital Content of the Year ’22/
28th AMD Annual Content Awards

DecemberNovember 8June 29“TOKYO MER: Mobile Emergency
Room”
wins Best Asian Drama for a
Regional/Int’l Market at theContentAsia Awards 2022

TBS Holdings, Inc. invests further in Amazing Sports Lab Japan, Inc.,
which is now an associated company

February 14

World’s first hydrogen broadcastingvan: the “Car that Makes the Earth
Smile” introduced

August 31
First TCFD report published.
Three major facilities to achieve carbon neutrality in FY2023.

“Mojiko”
audio transcription editor wins
Excellence Award at the Japan DX
AwardsTOPIX

VOXX, Inc. established to develop video
ad solutions business“3D Illumi Link”
wins the Content Technology Awardat the Technology Promotion Awards
organized by The Institute of Image
Information and Television Engineers

August 31
May 14

October 7“TBS Sans TP” branding font wins the FY2022 Good Design Award

August 10

TBS Holdings, Inc. concludes capitaland business partnership agreementwith K-BALLET Inc.

May

TBS Holdings, Inc. invests in andconcludes business partnershipagreement with The Chain Museum Inc.

2023

January

February

February 17

THE SEVEN, Inc. and Netflix
conclude strategic partnershipagreement

March
March 8

U-NEXT and Paravi announce
merger, becoming the largest
paid video streaming platform
in Japan.

TBS Holdings, Inc.
certified as Health & Productivity
Management Outstanding
Organizations for 2023

September 16
XR stage constructed using 360° footage
from the Beijing Olympics relay
wins Award for Excellence in the Technology
category at the 2022 Japan Commercial
Broadcasters Association Awards

December 13
TBS Holdings, Inc. and Minato City
sign cooperative agreement fordevelopment of Akasaka district

December 13

March 22

Announcement ofexpansion of shareholder
benefits system

TBS Television, Inc. andTsuburaya Productions
create partnership

021
011

March 10, 2023
¥1,955

TBS

001

100
95
January 17, 2023
¥1,458908580April 1, 2022
¥1,780
2022
April

May

June

July

AugustSeptember

OctoberNovember

December

2023
January*The stock price on 4/1/2022 isbeing compared with the index
as 100.
2023
February

2023
March

07

09
08
07

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Message from the President

We will create and expand world-classoriginal content to maximize Content LTV■ Introduction

From Tech Design X (cross)I am sending this message from Tech Design X (cross), our R&D
office and innovation center. As the name suggests, this place isbased on the concept of a blend between technology and design, and it’s where we experiment with performances that use
cutting edge technology such as XR and virtual production. Tech
Design X was recently established as a location for creators in avariety of genres to share new entertainment with the world.
It’s the ideal place to demonstrate both within and outside
the company that the TBS Group is future-oriented, and that weare a corporate and group entity that will continue to transformas we head into the future. →p.68
I would like not only the Group's 8,000 employees but also
people from outside the company to visit Tech Design X so they
can discover that the TBS Group is technologically advanced andthat we are beginning to step into uncharted territory.

Takashi Sasaki
TBS HOLDINGS, INC.
TBS TELEVISION, INC.
President and Representative Director

M es s a ge f ro mt h e P res ide nt
08

Message from the President

Message from the
President

Long-Term Vision andMedium-Term Management Plan

■ TBS’s reason for being: our social mission

Strategies for
Business

Value Creation Story

Content Innovation& Technology

must never forget mass media’s reason for being. In order to

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ EDGE strategy

Going beyond Tokyo and broadcasting with ourtrue nature as part of the “mass media”

save many people’s lives and assets through our coverage of di-

The World Baseball Classic (WBC) is the FY2022 event that had

media requires us to have the overwhelming trust of the public,

Accelerating our transformation through thethree challenges of creation, improvement andelimination.

the most intense impact on me. The exploits of the Japaneseand that is precisely why we must be extremely careful not to

The EDGE strategy is progressing even faster than I had expect-team, which was crowned the best in the world, gave us great■ A review of the past year: Increasing the value of
broadcasts

courage and filled Japanese society with joy. 94 million people watched Japan's seven WBC games in real time. The mostsasters, we must not lose our mass media functions. Being massuse our persuasive powers in the wrong directions. →p.35

ed. Launching a business only after careful consideration is quite
important, but in my experience, things progress even faster
when you just go ahead and start.

Japan’s entire population was emotionally impacted by watch-

Rapid progress in “New Family Core” viewer
ratings delivering attractive TV content toyounger generations as welling the same game on television. 62 million people sharing an

The ratings for the New Family Core (ages 4-49) demographic thatthe past we would have spent ages carefully preparing both theidentical experience is on a completely different level from “go-we are highly focused on grew greatly during FY2022, so thatstructure and the technology. It was the first time we had taken

ing viral” or “creating a buzz” in the internet world. It was a

TBS became become their second most-watched station during

the approach of fixing problems and the lack of preparation as

moment that made us realize once again the magnificent power

the Golden (7 p.m.-10 p.m.) and Prime time slots (7 p.m.-11 p.m.).

we went along, but thanks to the early launch, TBS, which hadof sports, the power of television as a media for reaching the

Our aggressive efforts to target the next generation, which isfallen behind in having a news website as a commercial televi-

masses, and the importance and gravity of the mission borne bysaid to be moving away from television, have borne fruit. At thesion station, grew to have the largest number of access page

mass media.

same time, however, the fact that content derived from TV is be-watched game was TBS’s broadcast of Japan versus South Korea,
with 62 million viewers. In other words, approximately half of

For example, our TBS NEWS DIG platform (which provides
news online although people tend to think of news information
as a mainly TV thing) was launched in just six months, whereas inviews (PV), which I consider a major achievement. →p.73

Moreover, the large number of female viewers of the WBC

ing watched on YouTube and the rest of the internet tells me that

Furthermore, we entered South Korea and launched Studio

was especially notable, even though it is often said that wom-young people are not moving away from the content itself. One

TooN, a company that publishes vertically scrolling manga foren aren’t very interested in baseball. If the internet is a placeof our aims in transmitting attractive content aimed at the New

reading on smartphones, with a speed that some might consider

where you can explore your interests or tastes more deeply, tele-

Family Core demographic is to stop young people from moving

hastiness. We expected it to take some time to organize every-

vision media has demonstrated that it has the power to open theaway from TV content. The fact that, for the first time since wething, including hiring personnel. However the crowd of web-hearts of people who were initially not interested or concerned.

began measuring ratings by age group, TBS was the second most-toon companies over there had just started restructuring at the

The TBS Group is in an era of transformation as we seek towatched station for that demographic during prime time is a sig-

go beyond not only TV but also broadcasting, and beyond Tokyo

nificant achievement, and I believe it proves that we have been

to challenge ourselves in various genres, but in the process, weable to enhance the value of broadcasting.

time, so we secured personnel faster than expected and quickly
launched two new titles. →p.72

09

Message from the President

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

This trend of growing a business by thinking while on thestarted transmitting video content abroad, but we believed

Akasaka used to be a nightlife district, but it is now a lively

move stems from the change in our employees’ mindsets in the

we needed “headquarters” to communicate widely globally inplace bustling with young people and families. If we can attract

direction of trying out a variety of interesting things. I am always

video and other genres as well. I want the Global Business Di-

even more creators and foreign tourists from now on, the city

telling them to try these three things: “create things from new

vision to add new creations by exploring business ideas where

will grab the world's attention and become even more inter-approaches,” “change and improve the routines you’ve been

video creators other than THE SEVEN can stream to the world, or

national. A future is rapidly approaching where Akasaka will

following for a long time,” and “boldly eliminate what is un-

where creators in genres other than video content can commu-

evolve into a city that creates new culture by gathering manynecessary.” The most important of these is the second. I wantnicate arts and culture to the rest of the world. And I would likekinds of people, and the brand power of TBS which is based in

to expand the business by breaking free of the old routine ofto accelerate such trends. →p.22

Akasaka will soar. →p.16 →p.50

thinking carefully before acting, and instead switching to a style

Furthermore, as part of training and education, an import-of thinking on the move. From that perspective, I think it would

ant field in the EDGE strategy, in June we made YARUKI Switch

be good for more and more things to be added to our current

Group Holdings Co., Ltd. a consolidated subsidiary of TBS Hold-

VISION 2030 policy and EDGE strategy.

ings, Inc. By combining the company’s content creating skills and■ Global expansion, education, and streaming

Pursuing business synergy by strengthening
partnerships based on the EDGE strategy

tional knowhow and customer base, we will develop new train-

Out of all our current initiatives, THE SEVEN, Inc. is putting the■ Akasaka Entertainment City

most effort into becoming “a company specialized in video con-extensive archives with YARUKI Switch Group Holdings’ educaing and education services and instill the children who will forge
the future with the power to solve issues themselves. →p.23

on the streaming service front, the merger of Paravi and U-NEXT

Breathing life in the city of Akasaka andtransforming it into the cultural center ofthe future

has led to the birth of the largest streaming platform in Japan.

In line with our current plans for Akasaka Entertainment City,

Instead of merely adding the TV dramas we specialize in to thethe tangible parts, namely the basic framework of the city, have

Korean dramas and movies that U-NEXT is known for, I expect abeen completed. Now we are focusing on the kinds of content

synergistic effect to be generated as we create new content andwe want to put there. In other words, we’ve reached the stage

genres together. →p.21

of breathing life into the new city of Akasaka. We hope to put

tent that communicates with the world” as a major pillar of the“G”, i.e. the Global domain in the EDGE strategy. Additionally,

In July, we established a new organization called the Global

structures in place to gather creators from all over the world, andBusiness Division within the company. THE SEVEN has alreadycreate a place where cutting-edge technology is concentrated.

10

Message from the President

Message from the
President

Long-Term Vision andMedium-Term Management Plan

■ Maximizing Content LTV

Horizontally developing and extensively
expanding long-lasting original content
We are currently increasing TBS’s original content in terms ofboth movies and terrestrial broadcast dramas. Instead of letting
our dramas end as dramas, we are able to turn original content
we own the rights for into long-lived content that spans areas,
genres and timelines by filming movie versions, streaming them,selling them abroad, and more. The “TOKYO MER: Mobile Emergency Room” movie became a smash hit as a result of that approach. It is a positive example of how TBS was able to display
initiative in all things precisely because it was a completely original work.
In the same vein, since “The Last Man: The Blind Profiler”
was a TBS original Sunday drama, we were able to collaborate
with “Dialogue in The Dark” to hold “Last Man in The Dark,” anevent that allowed people to experience the everyday life of theprotagonist, who is visually impaired.
Speaking of “The Last Man,” not too long ago, supplementary audio for persons with disabilities was simple and limited tothe minimum amount of sound necessary or just adding subtitles. Right now, however, even the narration added is painstakingly produced so that persons with visual disabilities can easily
understand it. This is a sign that trends are moving away fromcontent that prioritizes ratings to creating deep content thatconsiders diverse viewpoints.
As another example of the movement towards maximizing content LTV (customer lifetime value), creators including

Strategies for
Business

Value Creation Story

Content Innovation& Technology

announcers and designers have started thinking about how todevelop their content horizontally and prolong the lifespan of
their content as much as possible. In the case of anime, for example, there is SEVEN-ARCS Co., Ltd., a group of artisans who
actually produce the shows, there is MANGA BOX Co., Ltd. which
streams anime online, and the Animation Production Department (reorganized from the Movie and Anime Production Department on July 1) which mainly develops for TV and movies.
They are all involved in anime from different standpoints, but
if they were to develop a single title together and go about it
separately, they would probably act based on their own logic
alone, and the finished work would be a short-lived one witha lower LTV. That is why, as the first such attempt, we have appointed an executive officer to unite all of TBS by taking overallcommand of all TBS Group anime business. The officer’s job will
be to laterally unify these companies and departments so they
can think about and practice ways to deliver works that are themost effective and efficient for the TBS Group while also being
loved for a long time. →p.54
In other news, we recently appointed our first female executive officer. She will have oversight of the TBS Group’s design.
Her position will take charge of everything in the arts and design
domain (including dedicated departments in TBS in addition to
TBS Act, Inc. in the arts and technology domain, TBS Sparkle,
Inc. with its concentration of production functions, and TBS
Glowdia, Inc. which handles events), and manage each designorganization cross-organizationally. I believe that strengthening
the management of the whole Group from a bird’s eye view inthis way will trigger changes that exceed our imagination.

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ Human resources that create TBS quality

Nurturing people in order to make TBS quality
world-class
In order to raise the quality of original content to the level of“TBS quality,” which aims to be world-class, I have often said
that it is essential to acquire and nurture the creators who willproduce that content. Creators at TBS cover a wide range of human resources, including but not limited to producers, directors,
technical staff, designers, and announcers. Based on the factthat the content these human resources produce contains intellectual property (IP), it is not an exaggeration to say that thesuccess or failure of VISION 2030 depends on our ability to both
recruit these creators from outside and cultivate them carefully within. Furthermore, to grow continuously with a “content
first” approach, it is vital that we have not only creators but also
a diverse body of human resources to support them. Therefore
diversity is another crucial factor. The 8,000 people of the TBS
Group are involved in a multitude of industries. It is highly important for all members of the TBS Group to resonate with TBS’s
reason for being on a personal level and never forget it, and torespect each other’s work and accept and value diversity basedon that. At present the company is focusing so heavily on mid-career recruiting that the number of such recruits is approaching
the number of new graduate hires. If that immediate manpower
combines with the energy of the youth to form a dense layer
and tackle their work, we will remain a resilient organization
no matter how drastically the times change. I am convinced thatdiversity holds great power for future survival.

11

Message from the President

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Having established this, the question now is how to unite

That said, however, there is one thing that every TBS mem-such diverse human resources within our organization. In my

ber must never forget: “we must not win unfairly.” That can nev-

opinion, it’s enough to have the minimum level of cooperative-

er be allowed, and I take every opportunity I get to remind every

ness and a sense of common purpose. What really matters is per-single person in the Group that being seen as an unfair company

sonality. It’s enough if the organization is able to adapt to thoseis even more fearful than losing. →p.35

prominent personalities. I want the creators and other human

We will increase our corporate value while rewarding our

Even if such talents have a negative impact on their organiza-

many talents. The profits generated that way will be returned

tions, we should view that as a necessary effect for the sake ofto all stakeholders. If we become a “bad company” that goestransformation, so there is no need to crush their personalities

against the principles of the SDGs, this will eventually affect ourand force them to fit the organization’s mold. The important

profits and result in us betraying the support and expectations ofthing is the forward-moving vector, so in my opinion, the win-

our shareholders and being unable to provide suitable returns.

tage of the friction that arises.
If TBS gains strength and rises to the top of the industry, ourworkplace environments, ease of work, and remuneration will

The Global
Environment

Management
Structure

Performance andCorporate Data

I tell them that we must be a good, strong company.

resources we gather to be people with prominent personalities.

ning strategy will be changing while finding ways to take advan-

Human Capital and
Human Rights

It is my firm conviction that being a strong, victory-minded
company, while at the same time being a good, socially responsible company is the path to maximizing corporate value. You can
expect even greater things from TBS from now on.

all naturally become top-class in all the genres we are involved
in. We want to proceed with a “growth and returns” mindset
where we treat people well in order to generate future profits
which are returned to the shareholders and other stakeholders.

■ Message to stakeholders

We will aim to maximize corporate value by
endeavoring to win and to become a good,strong company
My message to all our stakeholders is that the TBS Group will
never give up striving to win. We are constantly refining the business structures we have put in place to achieve victory every day.

12

VisionandStrategy

TBS G roup V ISIO N 2 0 3 0

Me d i u m-Te r m Management Pl an 2 0 2 3“American Ninja Warrior”©NBCUniversal Media, LLC

Message from the
President

Strategies for
Business

Long-Term Vision andMedium-Term Management Plan

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

From a Media Group to a Content Group: Maximizing LTV
INPUT

BUSINESS MODEL

Human
capitalIntellectual
capital

Employees (consolidated): 7,984
Total course participants at TGU in-house university:*1

18,000*2

OUTPUT

Maximizing Content LTV (customer lifetime value)=Everything that moves people’s hearts*1 As of the end of June 2023 *2 FY2022

Works for overseas OTT (produced by THE SEVEN, Inc.)
to greenlight multiple productions
Dramas (Golden time) 11 out of 12 were original**FY2022

Manufactured
capitallargest in Japan)

TV and radio(terrestrial, BS, CS, radio)

Screened/performed content

Internet streaming(Movies, plays, musicals, live music, etc.)(Japan, overseas OTT)CreateAchieved carbon neutrality in FY2023(TBS Broadcast Center, buildings in the Akasaka Sacas complex,
Midoriyama Studio)

Invested in a total of 33 projects* through ourinvestment association (TBS-IP)
JNN (Japan News Network) made up of 28 stationsin Japan*as at end of FY2022

Financial
capitalGrowth investments: over ¥140 billion*
Corporate bond issuer rating: A (R&I)

ExpandCompetitive strategies

Manga
Growth strategies

EDGE

Enhancebroadcasting
valueIntellectual
training andeducation

Games
Patents,
licenses,merchandise, etc.

(Akasaka ACT theater, etc.)

Physical stores, online shopping(PLAZA, etc.)

City development, real estate(Akasaka Entertainment City)

Expand/Digital/
Global/Experience

Materiality

OUTCOME

Overwhelming Trust*during Medium-term Management Plan 2023

Brand promise

External
environmental
recognition

From each moment, a better tomorrow.

Diversifying content provision formats
Accelerating technological innovation

Cost suppression mindset has takenroot due to the COVID-19 crisis

Acceleration of SDG initiatives

Reduction in Persons
Using Televisions (PUT)

Unstable world affairs(including financial market trends)

New legal regulations(including soft laws)

06

01

Creating globally
beloved originalcontent

Strengthening
governance asa responsible
company

02

Fulfilling oursocial mission asa media group

Stakeholders
Viewers/listeners/customers

Theaters, events

Program formats

Capital investment of over ¥90 billion*

Socialcapital

Employees

TV and radio content(Drama, entertainment, sports, news, etc.)

Midoriyama Studio (approx. 26,444 m2, one of the*during Medium-Term Management Plan 2023

NaturalcapitalE x pa nd (pla tform )Cre a te (c onte nt)

Shareholders/investors

Advertisers

Business partners

05

03

Innovating workthrough thedevelopment andutilization oftechnology

04

Delivering
wonderful“moments” to all
the lives on earth

Delivering wonderful“moments” to everyone
we work with

Our Goals for FY2030

Revenue¥550 billion

Operating¥38.5 billion
incomeRatio of operating
7.0%
income to revenue

Revenue fromnon-broadcast
business to be

60%of the whole

Non-financial KPIs

→p.27

14

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Progress of TBS Group VISION 2030

Expanding Content without Limit beyond
the Framework of Broadcasting, Creating
Wonderful “Moments”

Broadcasting businessTerrestrial, BS, CS, radio

Broadcasting businessTerrestrial, BS, CS, radio

Creating
a bettertomorrow

Growth strategies

2030
2030

l

ita

Dig

Broadcasting business

40%

2020

40%

2020

E
EEDG
EDG

Broadcasting businessTerrestrial, BS,
CS, radio

0
N203
SI2O030OIN
IV
VIS

Terrestrial, BS,
CS, radio

l
itaal
DGig
lob

al
lob e*
G
rienc
Expe

ce*
stning
craie
de
xp
Ea
Bro

g

dcastinroa
CompetitiveBstrategies*Experience = Live entertainment and lifestyleNon-broadcasting business

60%
60%

Businesses in growth areas+ Non-broadcasting businessBusinesses in growth areas+ Non-broadcasting business

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

Revenue from non-broadcasting
businesses will grow dramaticallyonce we achieve VISION 2030

Non-broadcasting business1. Growth through content

2. Increase value of broadcasting business(1) R eform content creation

Deepen trust

Develop original IP, train and strengthen creators(2) EDGE strategy: Digital/Global/Experience
Focused investment of resources in expanding areas

Go beyond advertising media to become a value
co-creation hub
Promoting data-driven marketing■R evenue

Our Goals
for 2030■O perating

income¥550 billion¥38.5 billion■R atio of operating

income to revenue

7.0%
15

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Akasaka Entertainment City

VISION 2030
2030

Incubation
facilities
Discovercreators

Establish training andexchange functions forstartups and creators

Centralized management ofcontent using IDs
The best place at thebest timing

Tech Design X
Akasaka VFX Room

Gl
ob
al

nce
e
i
r
Expe

Co-creation with talents
gathered in Akasaka
Hold video contests, etc.

Di
gi
ta
l

Akasaka Entertainment City is more than a mere
real estate business. We have positioned it as abase from which the TBS Group will deliver wonderful content to the world, as a symbol promoting our presence, and as the key location for theachievement of VISION 2030.

Optimaldeployment of
data-driven
content

Search for
new visualexpressions

Performance andCorporate Data

Internet &streamingRealEstateEnclose users’ moments
which exist in various outlets

2028 Project(East building,West building)

Production

Akasaka
Biz Tower

Midoriyama
StudioCreator

The Hexagon

Hotel

Akasaka Sacas
SquareTo be invited in 2028
A location for sightseeing
and staying

TBS
BroadcastCenter

Akasaka BLITZ studio
TBS Akasaka ACT theater

Shops &
restaurants
A full lineup
Packed with one-of-a-kind
moments

Plays &
musicalsLong-running stage
performance of “Harry Potter
and the Cursed Child”

Theater &hall

InbounddemandTo be developed in 2028
Transmit all kinds ofentertainment

A city where people gather
from all over the world

Customer

16

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Dialogue between the Directors of Competitive Strategy and Growth Strategy

Turning the Spiral of Growth and Competition into TBS’s Greatest Strength
tive response on that front. Apart from the global aspect, we
expanded our intellectual training and education business under
Experience (E) by making YARUKI Switch Group Holdings Co.,
Ltd. a consolidated subsidiary. For the Digital (D) domain, we
strengthened our commitment to the U-NEXT platform throughthe merger between U-NEXT and Paravi, a streaming business,
and we intend to develop it into the largest streaming platformbusiness in Japan. →p.21 →p.23■ The current state of our competitive strategy

Polishing our strengths and balancing“two wheels.”

Shoichi Watanabe

Board Director and Director of Competitive Strategy,
TBS HOLDINGS, INC.
Managing Director, TBS TELEVISION, INC.

■ The current state of our growth strategy

The seeds have been sown and we are in theseedling nurturing phase
Sugai: The phase of “sowing seeds” of our growth strategy is already complete, and we are finally moving into the phase where
we care for them until they sprout, and then harvest the fruits.
Last year, after setting up THE SEVEN, Inc. as a company for ouroverseas strategy, we also decided to establish a new global
company to cover everything outside content distribution. It will

Tatsuo Sugai

Board Director and Director of Growth Strategy,
TBS HOLDINGS, INC.
Senior Managing Director, TBS TELEVISION, INC.

serve as a control tower for expanding our businesses internationally. Meanwhile THE SEVEN has begun full-scale operations.
During the current fiscal year, many of their projects were greenlit, in other words they received permission for production frommajor overseas OTTs. Since we will be compensated for being
seen all over the world, the production fees and sense of scale
are all going to change completely. In the Global (G) domain
of EDGE, strong seedlings have sprouted that we expect tostart blooming in FY2024, and we are receiving a highly posi-

Watanabe: The growth domains Mr. Sugai is in charge of, suchas the creation of content to be streamed internationally without being broadcast in Japan, and the transformation of Akasaka into an entertainment city, are businesses that appear to be
far removed from a continuation of the history TBS has built todate. However the goal of the competitive strategies I am heading is to increase the value of broadcasting, which has continuously been TBS's core business since its founding, and to build
the foundation for a sustained rise in revenue.
When I put it that way, it may sound like the two domainsof growth and competition are completely different things, butthat is not the case. To do “something new,” you need the richaccumulation of knowhow from “what you’ve always done,”and to increase the value of “what you’ve always done,” youneed to look at the new areas of that “something new.” To comeout on top in both aspects, you must speedily build strengths different from other companies’.
Sugai: VISION 2030 does not involve picking one aspect over the17

Dialogue between the Directors ofCompetitive Strategy and Growth Strategy

Message from the
President

Long-Term Vision andMedium-Term Management Planother. Instead it clearly points to achieving both together. I thinkof the competitive and growth strategies as “two wheels” needed to carry the TBS into the future.
Watanabe: That being the case, what are the strengths we needto build? I believe there are four of them. The first is “creativity.” Within that, original IP is extremely important, so we madesure that 11 out of the 12 dramas we aired during Golden time
(7 p.m.-10 p.m.) in FY2022 were original and not based on previous works. Improving our anime is another pressing issue. Since
October 2023, we have started rebuilding our nationwide program lineup broadcasting time slots. The second strength is “reliability.” Through means such as the rapidly growing TBS NEWS
DIG, we will earn trust online as well and become an even more
promising entity. The third is our “ability to reach.” As the WBC(World Baseball Classic) conclusively demonstrated, we far surpass
other media when it comes to our ability to reach large groupsof people at once in the same time frame. We are targeting the
New Family Core demographic in order to build a foundation for
TBS’s continued future growth. In FY2022 TBS was the second
most-watched station for that demographic during prime time,and its spot share rose for the 5th consecutive year. The fourth
strength is our “ability to solve social issues.” We will become thestart of a social movement as a “leading SDG station.”■ There is no growth without competition

The spiral of both strategies will become ourgreatest strength
Watanabe: In the past, when broadcasting was a business structure with high barriers to entry, it was possible to make a considerable amount of revenue just by selling mainly TV program com-

Strategies for
Business

Value Creation Story

Content Innovation& Technology

mercial slots. However you can’t win with just that any more. As
technology evolves and lifestyles change, it is essential for us todevelop our strengths and scale out in order to create new value.
Sugai: That said, the number of people coming into contact withour content has not decreased at all. They are still watching at
the same rate through a variety of devices and services. Therefore, the business model may be changing, but that does notmean we can no longer compete. After all, there is no growth
without competition. When THE SEVEN makes content for an
overseas audience, the knowledge will return to the site of thebroadcast and the quality of TV content will also increase, andas a result, TBS creators will use the ultimate weapon that is THE
SEVEN to attempt to make more advanced creations than others. We drew up growth strategies because we have competition, and we will continue to compete based on those growthstrategies. I believe that this spiral will become TBS’s greatest
strength.
Watanabe: You’re completely right. All of our initiatives in our
growth areas are linked to increased competitive power in existing areas such as broadcasting. The mechanisms to expand content without limit are in place, and we are going to boost ourstrengths even further and expand our fields of business. People
tend to speak about Akasaka Entertainment City as if it is a realestate project, but we have positioned it as a place for producing
entertainment spaces, and as a stage linked to the innovation of
future creative works. As we naturally continue to increase thevalue of our existing areas, we expect that every one of the creators currently working hard at our broadcast sites will be heavily inspired, and this will eventually expand their activities into
the fields of our growth areas one after the other. →p.16 →p.50

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ The meaning behind the announcement of VISION 2030

You cannot step onto the stage without raising
your flag

Sugai: We didn't announce VISION 2030 as a statement of our“ideal” state, but rather as a clear indication of what we will bein 2030, and a presentation of what we need to do right now inorder to achieve that state.
Watanabe: What we announced was the “desired state” of theentire TBS Group. It is a flag displaying the image we share inorder to win as a group. Group companies will develop a flatter,less hierarchical relationship as they consider each other comrades seeking to achieve the same VISION. Personnel exchanges
have become more animated, and awareness among production
personnel is beginning to change.
Sugai: You cannot step onto the stage without raising your flag.
For example, THE SEVEN has seen very positive results from the18

Dialogue between the Directors ofCompetitive Strategy and Growth Strategy

Message from the
President

Long-Term Vision andMedium-Term Management Planannouncement of VISION 2030. The company has been receivinga previously unimaginably large number of offers from major
producers overseas because the producers believe, “It might bea good idea to work together with a company that says thesekinds of things.” →p.22
Watanabe: At the same time, whenever you tackle new challenges, you have to make trade-offs with your previous way of working, and conflicts and other issues arise. The difference between
the timelines of the day-to-day work and the growth domains
can also cause confusion, since the former prioritizes short-term
achievements while the latter works from a medium- to longterm viewpoint. VISION 2030 firstly declares that it will boost thevalue of the broadcasting from which the TBS brand originates.
It states that we will challenge ourselves in new areas while solidly maintaining our broadcasting. However, there is also difficulty
involved in confronting the reality that we have to circulate theStrategies for
Business

Value Creation Story

Content Innovation& Technology

same limited resources, including people and objects, at the sitesthat support our broadcasts 24 hours a day and 365 days a year.
Sugai: That may be true, but it is also true that since our goaland direction are clearly indicated, a surprisingly large numberof people who have built their careers elsewhere are joining
TBS, bringing their specialized knowledge with them. This would
have been unthinkable for us in the past. They choose us because
they believe we are a company where what they want to do isappreciated and where they can take the next step forward.
Watanabe: Indeed, we have quite a number of mid-career hires
joining us at various work sites. What is happening is that ourthought patterns are diversifying as different people join us as
we work with the ideas and speed built from our 60 years of experience. I can feel that our ways of working are rapidly changing, and this change is not forced down from the top but is theresult of the organization propelling itself forward.

■ Future Challenges

Conquering our weaknesses to become an
overwhelmingly promising brandSugai: As we look to the future in this context, I believe it isimportant for us as a company to properly recognize our weaknesses and clearly understand what we lack.
Watanabe: When you embark on a new venture, you will naturally have many weak points and difficulties in performing adequately as a newcomer. There is also an element of conservativeness and homogeneity in our culture that comes from ouroriginal nature as a licensed business such as broadcasting. All
the companies in our industry have announced medium-term
management plans, but when you study them closely, they all

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

say virtually the same things.
To escape from that uniformity, I believe we must quickly
and decisively create differences between ourselves and others.
That is why our task now is to turn each of the four strengths
I mentioned earlier into true strengths as quickly as possible.
When we do, TBS will be in the position closest to the value creation of the future. However, we will not remain an organization where human resources that support growth continue togather unless we maintain that position.
Sugai: Calling these recent years the phase of “sowing seeds”
towards achieving VISION 2030 has set many things in motion.
Some of the seeds we planted may not sprout, but others willgrow explosively and quickly become ready for harvest. It is amatter of checking all of these factors individually while seeing
how much we can compensate for the things, people and ideas
we lack, and ultimately a question of how much we can develop
good creators and good businesspersons.
Watanabe: It is undeniable we have continued to produce
high-density content as part of our terrestrial broadcasting program listings. Right now we are in the early stages of turning
our focus away from that direction and making our debut inthe world, so not all of the projects in our growth areas will beable to turn a profit immediately. That's why we will need thepowerful support that comes from the increased value of thecompetitive domains in these times. Growth and competition.
We cannot achieve VISION 2030 without both of these. I believe
TBS’s next stage of becoming an overwhelmingly promisingbrand based on trust lies in the future we are heading towards
on these two wheels.

19

Long-Term Strategy &Medium-Term Management Plan

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Updated Medium-Term Management Plan 2023

Final Fiscal Year of the Medium-Term Management Plan:
Aiming for 47.5% of Revenue from Non-Broadcasting Business
Theme: “Sowing Seeds for Growth in Anticipationof the Post-COVID-19 Period”

Creating Synergy by Promoting Competitive and
Growth Strategies

The TBS Group Medium-Term Management Plan 2023 corresponds to Phase 1 of the TBS Group VISION 2030 (FY2021FY2023), and it was themed on “Sowing Seeds for Recovery after COVID-19.” However, after meeting our operating incometarget in the first fiscal year of the plan, in May 2022 we formulated the TBS Group Updated Medium-Term Management Plan
2023 with the theme, “Sowing Seeds for Growth in Anticipationof the Post-COVID-19 Period.” We will accelerate and promoterevenue growth through growth strategies and advance toward
where we want to be in 2030.

To achieve the goals of the Medium-Term Management Plan
2023, we aim to generate positive synergy by pursuing acompetitive strategy centered on enhancing broadcasting value
and a growth strategy centered around “EDGE,” a strategy for
expanding content. As an initiative for enhancing broadcastingvalue, we are striving to develop and expand our reach with
next-generation viewers by focusing on individual viewershipwithin the New Family Core (males and females 4-49 years old)
demographic. We will also rebuild the value of TV advertisingby crafting proposals that satisfy advertisers’ needs based on
utilization of data.

Our Goals for FY2030
Revenue
Operating income
Ratio of operating
income to revenue

7.0%2030 Have revenues from

2027

2024

2021

Revenue¥390.0 billion

Operating income¥26.0 billion

Ratio of operating income
to revenue
Simplified EBITDA*

6.67%¥39.5 billion

Share of revenue fromnon-broadcasting business

47.5% of total(4.1 point increase from FY2021)

Growth investments

Over ¥140 billion in 3 years*Simplified EBITDA: operating income + depreciation expenses¥550 billion¥38.5 billion

Phase 1
Sowing Seeds for Growth in Anticipationof the Post-COVID-19 Period 2021-2023
Sowing seeds for growth as we headtowards VISION 2030 while boosting
revenue through growth strategies■ Quantitative Targets

non-broadcasting
businesses accountfor 60% of total
revenue by 2030

Phase 3
Accelerate and Maintain Growth2027-2030
Accelerate businesses in each growth area
Realize continuous Group growth, and achieve
VISION 2030 goals

Phase 2Development and Growth2024-2026
Nurture the seeds sown in Phase 1 andestablish a growth base for 2030
Achieve new business growthCompetitive strategies

Enhancebroadcastingvalue■ Work to enhance broadcastingvalue during the current
medium-term plan period■ Attract the next generationof viewers and reconstruct theunique social value offered by
television■ Allocate production costs
optimally and promote multi-use■ Strengthen JNN network
affiliates

Growth strategies

Expand/Digital/
Global/Experience■ Give tangible form to the EDGE

expansion strategy to achieve
VISION 2030 goals■ Carry out measures to kickstart

growth in the digital, overseas,
live entertainment, and lifestyle
areas

20

Medium-Term Management Plan 2023

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

MTMP 2023 - Progress in the Broadcasting and Digital Domains

Capital and Business Alliance with U-NEXT
The Largest Video Streaming Service in Japan Begins!
FY2022

New Family Core viewer ratings(Ages 4-49)

Golden, Prime: 2ndGolden (7 p.m.-10 p.m.) 3.1%
Prime (7 p.m.-11 p.m.) 3.0%
4/4/2022 - 4/2/2023 weekly basis
Data by Video Research Ltd.
in the Kanto region

Streaming business
FY2022 performance(Year on year)

Streaming
advertising
revenuePaidstreaming
revenue+16.4% +43.5%■ Broadcasting business FY2022 performance

TBS was the 2nd most-watched station in the
New Family Core demographic in Golden/Primetime, and streaming revenue grew markedly
In the broadcasting business, TBS was second place in viewer ratings in the New Family Core demographic (ages 4-49) in both theGolden (7 p.m.-10 p.m.) and Prime time (7 p.m.-11 p.m.) slots.
We targeted the New Family Core so that we could expand
the viewer structure that supports broadcasting to all generations and build a foundation for growth ten to twenty years
down the line. Revenue shows steady growth year on year, with
our spot 5-station share increasing for the fifth year in a row(20.6% in FY2022), for example.
In the streaming business, advertising revenue from ADVOD
such as TVer increased by 16.4% from the previous fiscal year due
to higher sell-through rates throughout the year. In paid streaming, revenue jumped by 43.5% year on year because we released
a wide variety of content, such as “The Future Diary,” “I Will Be
Your Bloom,” and “Why Didn’t I Tell You a Million Times?” on
Netflix and “My Family” and “Atom’s Last Shot” on Disney+.

■ U-NEXT and Paravi merge on March 31, 2023

The birth of the largest video streaming
platform in JapanU-NEXT and Paravi merged their businesses at the end of March
2023, and the content provided by Paravi was transferred to
U-NEXT to coincide with the launch of a new service in July.
This marked the birth of the largest video streaming platform
in Japan, with net sales of over 80 billion yen, over 3.85 million
paying subscribers and more than 360,000 episodes of content.*
The Japanese streaming service market, including foreign
streaming services, is becoming increasingly competitive, but
this business merger has allowed us to organize more substantial content and thus provide a more appealing and competitive
service.

also offers e-books that include over 190 all-you-can read magazine titles. For its part, TBS’s strength is in content delivery
where we offer daily-updated catch-up streaming content, and
we also have the largest selection of dramas and entertainmentshows in Japan when it comes to archive streaming. As a resultof the strengthening of
the partnership between
the two companies, wewill enhance our content
lineups, pursue growth investments such as M&As,
and accelerate the growthof our content streaming
business.

■ New service starts on July 1, 2023
*The numbers of paying subscribers and content episodes are simple totals(as at the end of May 2023)■ Strengthened capital and business alliance with
U-NEXT on June 30, 2023

TBS acquires 20% of U-NEXT shares and signs
partnership agreement
TBS also acquired more U-NEXT shares to bring its stake to 20%,and signed a partnership agreement with them at the end ofJune 2023.
U-NEXT covers a wide range of content: in addition to its
original strengths of movies, anime, American, European and
Korean dramas, and the live streaming of sports and music, it

In July, a new streaming service including Paravi’s abundance ofcontent was launched, and over 10,000 episodes of TBS’s dramas and entertainment shows became available for viewing on
U-NEXT as well. The number of paying subscribers has continued
to increase since the business merger, but without relaxing thepartnership between the two companies, we will continue to enhance content while using our joint resources to try to develop
new services that use the latest technologies such as AR and VR.
Furthermore, if we both confirm that cooperative synergy
has been created as a result of these initiatives, TBS will have theoption to make additional investments to raise its ratio of voting rights to 30% in order to strengthen this cooperation evenfurther.

21

Medium-Term Management Plan 2023

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

MTMP 2023 - Progress in the Global Domain

Preparing to Establish a New Global Company after THE SEVEN, Inc.
THE SEVEN, Inc. prepares to announce its content
lineup
THE SEVEN, Inc., which started full-scale operations in 2022, has
prepared a production budget of 30 billion yen and is planning,developing and producing high-end content for the international market, mainly in collaboration with global OTT.
In November 2022, they concluded a strategic partnershipagreement with Netflix. For the next five years, in addition to
jointly developing video content, they will distribute multiple
works internationally through Netflix together with original
projects and productions created by THE SEVEN’s producers.

Apart from Netflix, they have also made project proposals
to other overseas OTTs, which they expect to be greenlit during
this fiscal year, so they are preparing to announce their lineup.
Several world-class talents in the video industry havejoined their project development structure. They include Akira
Morii, producer of successful titles such as the international hit“Alice in Borderland,” and Tomofumi Akahane, a leader in the
VFX industry in Japan and overseas. Personnel with a wealthof experience in negotiating business with overseas business
operators have joined the company as well. As their projects
expand, the number of brilliant creators is expected to increase
even further.
At Midoriyama Studio City, we have built a filming studiowith global standard specs for streaming content, and we havealso established a dedicated VFX room at Akasaka that can handle the production of various kinds of works.

Preparing to establish a new global company which
will cover genres “other than” content sharing

We also decided to set up a new company to expand global business, and to that end TBS Holdings, Inc. established a
Global Business Division with a Global Enterprise Design Office directly under it in July 2023.
The new company we are preparing to establish will
cover genres “other than” the video content that THE SEVEN
is producing for the global market. It will serve as a control
tower for the expansion of our businesses overseas.

New
Global Business Division

New
Global Enterprise
Design Office

THE SEVEN, Inc. office (Akasaka, Minato City)

Global Business
Department(from left) Producer Morii, VFX Producer Akahane, CEO Sugai

22

Medium-Term Management Plan 2023

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

MTMP 2023 - Progress in the Experience Domain

Full Advance into the Intellectual Training and Education Business:
YARUKI Switch Group Holdings Co., Ltd. Becomes a Consolidated Subsidiary
TBS has positioned the intellectual training and education business as one of the important fields of the EDGE strategy. We
established the Learning Next Business Department in October
2022 to promote it.
In this age of volatility, uncertainty, complexity, and ambiguity (VUCA) where the future is hard to predict, the power to“think and create for yourself” is becoming increasingly vital.
In light of that, the intellectual training and education businessis beginning to introduce learning styles such as “inquiry-basedlearning” that differ from traditional methods. The development of new video-based learning materials and schooling thatincorporates new technologies is being explored, and the importance of using video technology to deepen learning is growing.
Through our broadcasting business, TBS has produced manyeducational entertainment programs such as “Discovery of theWorld’s Mysteries,” “Amazing Animals!” and “World Heritage,”delighting, moving, surprising and enlightening many children.
Using that in-built nature, we plan to go beyond the frameworkof broadcasting to give children many dreams and hopes andthe power to live through our intellectual training and education business.
As an indispensable partner in developing and commercializing educational content, we invested in YARUKI Switch Group
Holdings Co., Ltd., a company with one of Japan’s largest educational knowhow and customer bases at 130,000 paying members, and welcomed them as a consolidated subsidiary on June29, 2023.
We plan to create a new intellectual training and education
business together through the combination of YARUKI Switch
Group Holdings’ educational knowhow and customer base andTBS’s creative content production abilities.

Akasaka Entertainment City Plan

We have settled on Kajima Corporation for the construction of theEast Building and Obayashi Corporation for the construction of theWest Building of the Akasaka 2-chome and 6-chome redevelopment
plan. Construction is steadily under way for completion in 2028. The
concept of the redevelopment plan and the existing area is “An en-Content
production
ability

Video archive

Other Learning
Next businesses

Opened a new studio at
Shirokane-Takanawa inMarch 2023.

tertainment hub that inspires the world. Shake the World. AKASA-

Video
education
Educational
content

Infrastructure for sports education
business.
Became an affiliate accounted forby the equity method.

KA.” Our first foray was the stage play entitled “Harry Potter andthe Cursed Child” which opened in July 2022. The play, together with

Educational infrastructure( 130,000 pa y in g me mb e r s)

Modern art
promotion
project

Held an art exhibition incollaboration with Drama
Stream in September 2022.
Future collaborations withdramas and other content
are planned.

the café and merchandise shop adjacent to the theater, has received
highly positive reviews from many quarters and continues its longrun.

Stage performance of “Harry Potter and the Cursed Child”©Maiko Miyagawa

23

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Risks and Steps Taken in Response

To achieve TBS Group VISION 2030, we are taking steps to guard against risks
that we have identified based on external conditions.
TBS Group VISION 2030 and External Conditions■ TBS Group VISION 2030

1. Aiming for growth revolving around content(1) Innovations in creating content

Risks faced by the TBS Group
Risks related to EDGE growth strategies• Increased competition due to diversification of streaming
platforms→ Promoting the development of original IP→ Fostering and empowering creators• Cancellation or curtailment of theater performances due toinfectious disease outbreaks, international instability, etc.

Concentrating resources in areas of expansion• Difficulty in attracting human resources and increased
turnover(2) The EDGE Strategy (Digital/Global/Experience)

2. A iming to enhance the value of our broadcasting
business• Increasing trust•M oving beyond an advertising medium to a hub for value
co-creation• Promoting data-driven marketing■ External conditions• Defense and infringement of intellectual property rights• Loss of inbound demand due to infectious disease outbreaks,
international instability, etc.
• Changes in consumer lifestyles

Risks related to our competitive strategy (increasing
the value of broadcasting)• Dependence on advertising revenue from terrestrial TV

Steps to address each risk

The TBS Group’s materiality

Disclosing key issues to address in each ofits business and ESG areas■ Devising and implementing various steps• Human Capital Management
Formulating a Human Resource Development Policy andInternal Environment Improvement Policy
Disclosure of the TBS Group’s human rights policy, healthmanagement, etc.
• Launch of the Project to Promote Content ID
Discussing methods of revenue management based on content
LTV (customer lifetime value), our organizational structure, etc.

• Intensifying competition among media for consumers’ freetime

• Establishing a Sustainable Cost Containment Structure
Eliminating waste caused by conventional practices in thecontent creation process• Soaring fees for the broadcast rights to sports content• Strengthening Our Security Response Team (TBS-CSIRT)• Decline in terrestrial TV ratings• Risks related to the conversion of core facilities•D iversification of the formats in which content is supplied• Increased costs related to large-scale software development• Endorsing the TCFD Recommendations
Determining and disclosing risks and opportunities related toclimate change and steps taken in response• Acceleration of technological innovation
 he metric for corporate valuation has shifted from tangible•T
to intangible assets• After COVID-19• Climate change• Continued instability of the international situation• Increased demand for compliance with legal regulations(as well as soft law)

Other business and company-wide risks• Risk of leakage of personal and confidential information due
to cyber-terrorism• Establishing a New Akasaka Entertainment City Project Division
Aiming for “urban development” and “creating a place” inaddition to real estate management• Impact on business performance due to changes in legislation• Shrinking demand for office space due to the prevalence of
teleworking• Risk of damage to facilities and loss of power supplies due tolarge-scale disasters associated with climate change*For details on major risks and steps taken in response, see →p.107

The TBS Group’s General Risk Management Committee
Ascertaining and identifying risk
Assessing the impact and significance of each risk

24

Message from the
President

Materiality

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

The TBS Group’s Materiality

Key Issues to Be Addressed to Achieve VISION 2030
Creating globally beloved
original content

01■R ecruiting and nurturing future original IP creators■ F ostering workplace environments and systems thatfacilitate taking on challenge■ F inding human capital and improving structures for
global expansion■ I mproving the management and use of content toenhance lifetime value

Delivering wonderful “moments”
to all the lives on earth04■ S etting and implementing targets to achieve zerocarbon emissions■P romoting environmentally-friendly sustainable
content production■E nhancing measures for biodiversity preservation

Fulfilling our social mission
as a media group

02

Innovating work throughthe development andutilization of technology

03■E stablishing standards and systems to ensure
overwhelming trust in all content■D eveloping and leveraging proprietary technologies
to improve content quality■ S erving as the starting point for influencing society
through content on achieving the SDGs

■D eveloping technologies to optimize operations andsave labor (cost reduction)■ F urther refining our capabilities as an information
lifeline in the event of a disaster■B olstering global policies as a leader in conveying
Japanese culture

Delivering wonderful “moments”
to everyone we work with05■R
 einforcing the analytical infrastructure for datadriven marketing

Strengthening governanceas a responsible company■E stablishing working environments that are fair aswell as physically and mentally safe, allowing peopleof diverse backgrounds to flourish■E nhancing strategic decision-making and risk
management in light of changes in our businessportfolio■E ncouraging a suitable commitment to supply chains■ Fully engaging with shareholders and otherstakeholders■ Improving education and training to help ourcolleagues improve their skills

06■E nsuring the diversity of directors and executive
officers in terms of skills and gender25

Materiality

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

The Process of Identifying Materialities

Discussed and Approved by the Board of Directors of TBS Holdings
In May 2022, based on TBS’s corporate philosophy and brandpromise, we identified and announced materialities (key issues)that are indispensable to achieving EDGE, the expansion strategy set forth in the TBS Group VISION 2030, and to promote ESG
management.
The Sustainability Committee, chaired by the President, reviewed the TBS Group’s areas of business overall. In the area ofESG, the Committee referred to and examined information todisclose as indicated by organizations typically promoting information disclosure such as the GRI, SASB, and WEF, it referred toitems evaluated by major organizations evaluating ESG, and it
listed items in line with the Group’s business characteristics. After discussion of materialities by the full-time Board of Directors
of TBS Television and their selection and identification by President Sasaki himself, TBS Holdings’ Board of Directors reviewed
and approved those issues.
What issues are particularly important for TBS to enhancethe value of the Group and achieve sustainable growth by giving
the world wonderful “moments”? What efforts are essential for
TBS to continue fulfilling its social mission as a media company?
What does a company that fulfills its responsibilities to all our
stakeholders, including shareholders, partners, and employees,
look like? With the 169 targets of the SDGs in mind, the Committee continued to examine and discuss materialities for close
to six months.
Of the materialities identified, KPIs were set for FY2022 in
the areas of human capital management and the environment.
We will continue to set specific targets (including numerical targets) and announce them as necessary.

The status of the TBS Group’s materialities
Corporate philosophy
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.

Based on our philosophy and promise...

Course of our examination of materiality
2021.11

Sustainability Committee began examining materialities

2021.12

Verified various indicators in financial and non-financial areas

2022.02

Created a list of potential business and ESG areas

2022.02

Materialities verified and discussed by
TBS Television's full-time Board of Directors

2022.03

Materialities selected and identified by President Sasaki

2022.04

Materialities were examined by
TBS Television’s full-time Board of Directors

2022.04

Reviewed and approved by TBS Holdings’ Board of Directors

2022.05

TBS’s materialities were identified and announced

VISION 2030/Sustainability
Enhancing the Value of Broadcasting +EDGE Strategy/ESG Management

To achieve our VISION and Sustainability...

Identified six materialities

Criteria/standards cited in the area of ESG** GRI Standards: Global Reporting Initiative Standards
SASB: Sustainability Accounting Standards Board
WEF: World Economic ForumSDGs: Sustainable Development Goals

26

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Major Materiality Initiatives

KPIs Were Set as Indicators of Change, Mainly in the Area of Human Capital*Various figures Unless noted otherwise, FY2022.

01

Creating globally beloved
original content■ Recruiting and nurturing future original IP creators
KPI

Number of original dramas produced(Golden time: 11 of 12 dramas are original)■ Fostering workplace environments and systems that facilitate taking
on challenge02■ Serving as the starting point for influencing society through content onachieving the SDGs
Initiative

KPI■ Finding human capital and improving structures for global expansion
Initiative

KPI

Formulating a philosophy and strategy for human capital management→p.75
Ratio of mid-career hires (43%, 25 out of 58)
Number of short-term study abroad students in-house (6)Courses for promoters of our EDGE strategy to share their knowledge(41 courses)■ Improving the management and use of content to enhance lifetime value
Initiative

04

Status of the project to introduce a TBS Group ID and Content ID→p.54

Delivering wonderful “moments”
to all the lives on earth■ Setting and implementing targets to achieve zero carbon emissions
Initiative Endorsing the TCFD recommendations

KPI

Report disclosed →p.88

CO2 emissions← Target: Achieving carbon neutrality at the TBS Broadcast
Center, buildings in the Akasaka Sacas Cultural Facility,
and the Midoriyama Studio

Fulfilling our social mission
as a media group

SDG ProjectContinuation of “WEEK to Make the Earth Smile”. →p.37“WEEK to Make the Earth Smile”
Total broadcast time: 131 hours Total number of programs: 213 (after 2020)03■ Enhancing the analytical infrastructure for data-driven marketing
Initiative

Delivering wonderful “moments”
to everyone we work with

■ Establishing working environments that are fair as well as physically andmentally safe, allowing people of diverse backgrounds to flourish
Initiative

Formulating a philosophy and strategy for human capital management
→p.75

KPI

Ratio of female managers (15.76% *HD & TV as of July 1, 2023)← Target: 20% or more by the end of FY2025
Return rate for personnel survey sent directly to the Personnel Department(57%)
Rate of one-on-one implementation (58%) ← Target: 80%
Telework rate (17%) Turnover rate (2.3%) etc.

06

Initiative

KPI

TBS Group University (TGU)
Number of courses (164) Total number of participants (18,000)
Number of select management candidates attending training(140 since 2016) etc.

Developing and introducing Mojiko, a transcription editor, etc.
→p.83

Strengthening governanceas a responsible company■ Enhancing strategic decision-making and risk management in light ofchanges in our business portfolio
Investments in growth 40 billion yen or more← Target: 1

KPI■ Improving education and training to raise the skill level of our partners
Formulating a philosophy and strategy for human capital management→p.75

Status of the Project to Implement a TBS Group ID and Content ID→p.54■ Developing technologies to optimize operations and save labor(cost reduction)
Initiative

05

Innovating work through the development
and utilization of technology(during the 2023 Medium-Term Management Plan)

Sales of cross-shareholdings (116.1 billion yen in the last 5 fiscal years)← Target: 6
 0 billion yen or more(during the 2023 Medium-Term Management Plan)■ Ensuring the diversity of directors and executive officers in terms ofskills and gender
KPI

Ratio of outside directors (40%, 4 out of 10)
Ratio of female directors (10%, 1 out of 10) *As of FY2023

27

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Message from the Director of Financial Strategy

Investing in growth mainly in the EDGE areas

Toshiaki Kawai
Representative Director and Director of Financial Strategy,
TBS HOLDINGS, INC.
Executive Vice President, TBS TELEVISION, INC.

■ Status of the second year of the 2023 Medium-Term
Management Plan and outlook for the future

Both revenue and operating income reachedtheir highest levels since the Company became aholding company in FY2009.
Looking back at FY2022, the advertising market was significantly affected by high resource and commodity prices associatedwith the situation in Ukraine and shortages in the supply ofsemiconductors and other components, while remaining vigilant
regarding the spread of COVID-19.
In addition, conditions were harsh due to the US-China relationship, which was overshadowed by the issue of Taiwan, andbank failures in the US and Europe. Under these circumstances,
the Group updated its 2023 Medium-Term Management Plan in
May 2022 and took various steps on the topic of “sowing seeds
for growth after COVID-19.” As a result, consolidated results for
FY2022 reflected an increase in both revenue and operating income, reaching their highest levels since the Company became aholding company in FY2009.
Revenue increased in all segments. In the broadcasting business, TBS TV (the Group’s pillar) ranked second in the New FamilyCore demographic for the first time, leading to an increase inmarket share. The industry-wide decline in revenues from spot
ad had a limited impact on us, and we believe that it demonstrates that diligently creating appealing content for both viewers and sponsors will enhance the value of our broadcasts. In
addition, TVer advertising revenue grew 29.2% in the streaming
business, which is part of our EDGE (Expand/Digital/Global/Experience) strategy. Paid streaming and overseas streaming, which
are part of Global area, grew significantly and contributed toearnings particularly in FY2022. Theaters, which are a pillar of
the Experience area, also recovered, and sporting events such as
the WBC were strong. The number of customers visiting Plaza
stores has grown beyond expectations, and the Akasaka area isthriving with cafes and events at Akasaka Sacas.

Revenue390■ Operating income■ S implified EBITDA

Revenue

368.1

400 400
400 400(= operating income + depreciation)

300 300
300 300■R evenue

200 200
200 200
100 100
100 100

Upper row: Revenue
Bottom row: Operating income

0Media and content
Lifestyle
Real estate and other

Total

00

26
20.7

10.1%
9.3%
6.7%

5.6%
(¥ billion)

0
Results for FY2022

Target for FY2023

285.2 billion yen

300.5 billion yen

10.9 billion yen

15.6 billion yen

66.3 billion yen

70 billion yen

3 billion yen

3.3 billion yen

16.5 billion yen

19.5 billion yen

6.7 billion yen

7.1 billion yen

368.1 billion yen

390 billion yen

20.7 billion yen

26 billion yen

45.9%

47.5%

Share of nonbroadcasting revenue

Target for
fiscal year
2023

39.5

34.1

Revenue
390 billion yen

Operating income
26 billion yen

Simplified EBITDA
39.5 billion yen

Share of non-broadcasting revenue: 4
 7.5% of the total(up 4.1 points from FY2021)

28

Message from the Director of
Financial Strategy

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Percentage of non-broadcasting revenue(¥ million)

43.4%

45.9%

2021

2022

47.5%

2023

(target)358,269

368,130

390,000

Non-broadcasting
business revenue

155,482

169,051

185,299

Broadcasting
business revenue

202,787

199,079

204,700

Strategies for
Business

Value Creation Story

Content Innovation& Technology

In FY2021, we invested approximately 50 billion yen. Together with approximately 23 billion yen from FY2022, we haveinvested approximately 73 billion yen in growth to date. In addition to efforts related to Akasaka Entertainment City, in FY2022
we invested in the area of Experience, including K-BALLET, theChain Museum, and Amazing Sports Lab Japan, in the area of
Digital, including investment in U-NEXT and the establishmentof VOXX, and in the area of global IP, including the establishment of Studio TooN. Compared to the area of Experience, theareas of Digital and Global are somewhat slow, so the Global
Business Division, which was established in July, will serve as acommand post to accelerate our actions on the world stage.

Investments in growth(140 billion yen or more is planned during the 2023 Medium-Term Management Plan)

We will work with local residents to create an attractive area asa base for content creation and distribution and to enhance thepower of the Akasaka brand.
Through the promotion of our EDGE strategy, the ratio of
non-broadcasting revenue, which is one of the pillars of the TBS
Group VISION 2030, grew steadily from 40% in FY2020 to 43.4%
in FY2021 and 45.9% in FY2022, exceeding the targets. We aim
to increase this to 47.5% of the total in FY2023.

■ Investment in growth

Continuing active investing in line with our EDGE
strategy
We intend to invest a total of 140 billion yen or more in growthover a three-year period in line with our EDGE strategy.

June 2023
As of 6/2023
Total:
approx.

D U-NEXT became an equity-method affiliate

127

E YARUKI Switch Group Holdings became abillion yen

consolidated subsidiary

Fiscal year 2022
Approx.

23

billion yen

Approx.

50

billion yen

EFiscal year 2021
D G Invested in THE SEVEN

Invested in the Akasaka
EEntertainment City Plan
Increased capital inIP
Seven Arcs etc.
D : DigitalInvested in the Akasaka Entertainment
City Plan

E Invested in K-BALLET and the Chain Museum
G IP Established Studio TooN
D Established VOXX
E

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Investments in growth are financed by cash on hand, accumulated operating cash flow, and the sale of cross-shareholdings. For some time now, we have been comparing investment
returns such as capital costs, IRR, and ROIC when starting a new
business or making an investment.
In FY2023, we plan to invest over 70 billion yen in growth.
There were two major investments prior to June. In conjunction
with the integration of the streaming services U-NEXT and Paravi
to create the largest streaming platform in Japan, we subscribedto a third-party allotment of new shares of U-NEXT and converted it into an equity-method affiliate. Investment amounted to24.3 billion yen. In our intellectual training & education business, we invested 30 billion yen to convert YARUKI Switch Group
Holdings, which operates a comprehensive education businessfor children from infants to high school students, into a consolidated subsidiary.
We plan to focus on global IP, which includes programs andcontent generated by Studio TooN. The seeds sown will basicallybe nurtured and grown in Phase 2, but the seeding itself will bedone on an ongoing basis.
Seeds for growth after COVID-19 are steadily being sown on
the whole, and projects that could become future centerpieces
are being nurtured. As we enter the final year of the 2023 Medium-Term Management Plan, we will steadily implement theplan and continue to grow so that we can transition to the next
medium-term management plan and achieve VISION 2030.

 dditional investment in Amazing Sports
A
Lab Japan

D Invested in U-NEXT etc.

G : Global

E : Experience

IP : Original IP

29Message from the Director of
Financial Strategy

Message from the
President

Strategies for
Business

Long-Term Vision andMedium-Term Management Plan■S
 hareholder return

Expeditious share buybacks while maintaining aconsistent and methodical dividend policy
We have been increasing dividends to shareholders in line with
the Company’s growth, and we increased dividends by 5 yen to
42 yen in FY2022. In FY2023, we plan to increase the dividendby another 2 yen to a total of 44 yen, consisting of an interim
dividend of 22 yen and a year-end dividend of 22 yen, thus maintaining our basic policy of consistent and continuous dividends.
Over the past five years, the Company has purchased approximately 18 billion yen of its own shares to improve shareholder returns and capital efficiency and to introduce an incentive plan for officers and employees. In FY2022, the company
also purchased 10.9 billion yen of its own shares. This, together
with the dividend of 7 billion yen , resulted in shareholder returns of around 18 billion yen.
The dividend payout ratio is 20.1%, but we have enhanced
our disclosures, such as indicating the amount of treasury stock
purchased, so that our shareholders can understand our policyof generating future profits from our current investments ingrowth and returning those profits to shareholders on a sustainable basis. The Company appropriately manages gains on salesof investment securities for use in growth strategies.
The only way to raise the share price is to show an increase incorporate value and sustainable growth. In order to continue toincrease the number of long-term shareholders, we will enhanceshareholder benefits to encourage them to understand the TBS
Group’s business activities and win them over.

Value Creation Story

Dividend policy andannual dividend forecast
The target for the dividend payout ratio on a consolidated basis
is 30%, with a lower limit of 30
yen per share during the 2023
Medium-Term Management Plan.
However, the minimum dividend
may be revised if the Company
does not generate a net profit for
two consecutive fiscal years.

Content Innovation& Technology

42 yen37 yen44 yenFY2021

FY20222023 MediumTerm Mgmt Plan

FY2023(forecast)

Annual dividend(yen)

Dividend payout
ratio (%)

Dividend payout ratio
excluding the impacts ofspecial factors (★)

FY2019

30

17.3

43.0

FY2020
FY2021

30
37

18.3
19.7

59.5
30.9

FY2022

42

20.1

30.3

FY2023(forecast)

44

29.6

-

★Special factors G ains/losses on sales of investment securities sold as a source ofinvestment in growth areas

Total dividends and purchases of treasury shares
7.08
6.32
5.19

5.12

FY2019FY2020

The Global
Environment

Management
Structure

Performance andCorporate Data■C
 ross-shareholdings

116.1 billion yen sold over 5 years

30 yenFY2020

Human Capital and
Human Rights

In accordance with the Corporate Governance Code, the Boardof Directors examines cross-shareholdings multiple times withrespect to individual issues, including business relationships andeconomic benefits compared to capital costs. We have been selling off stocks that have diluted the significance of our holdings
as necessary, and the reduction over the five years since FY2018
totaled 116.1 billion yen. With respect to the target reductionof 60 billion yen as promised in the 2023 Medium-Term Management Plan, we implemented a reduction of 44.1 billion yen
by FY2022 and expect to meet the target by the end of FY2023.
→p.101

Here, I would like to mention the Tokyo Electron stock. Exactly 60 years ago, Tokyo Electron Laboratories (the predecessorof Tokyo Electron) was established as a wholly owned subsidiaryof the Company (then Tokyo Broadcasting System) as a new challenge outside of broadcasting.
The company’s long history of support and research led tosignificant growth during the semiconductor boom. However,
we sold our shares in the company because its line of businesshad diverged from our core business, and the company was listed on the stock exchange. Now, we hope to use the funds topromote our EDGE strategy and nurture businesses that will leadto the future and new sustainable growth.

(¥ billion)

FY2021

FY2022

FY2023(forecast)
Purchaseof treasury 4 billion yen 2.6 billion yen 0.9 billion yen 10.9 billion yen
shares30

Message from the Director of
Financial Strategy

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Sales of cross-shareholdings■ Sales by fiscal year

Number of listed stocks held by TBS Holdings and TBS TV

116.1 billion sold over 5 years
32.4
28.4
24.1
42

42

42

40

11

(¥ billion)

20.1

38

5 issues inwhole orin part

5 issues inwhole orin part4 issues inpart

8 issues inwhole orin part

6 issues inwhole orin part

FY2018FY2019FY2020

FY2021

FY2022■ Capital efficiency and disclosures

Continuing discussions to put forward a set ofindicators
Here, we will describe our thoughts and discussions on capitalefficiency. Prior to the TSE’s (Tokyo Stock Exchange) request that
we increase our PBR by more than 1.0-fold, we had settled onincreasing capital efficiency, even if just a little, and each department has been discussing how to set targets and indicators thatwill enable them to visualize definite progress.
That said, we must consider the fact that we have a mission
as a broadcaster that is entrusted with a portion of the airwaves,which are public property. In light of these points, we will now
fully explain the current situation, which is one where we havenot put forward management indicators such as ROE. In any

Strategies for
Business

Value Creation Story

Content Innovation& Technology

event, we are in the process of discussing the next medium-term
management plan to put forward indicators related to capitalefficiency along with an explanation of the optimization of ourbalance sheet.
As we have explained, we maintain anti-takeover measuresin order to maintain our public status as a broadcaster and ourneutrality as a news organization. Naturally, we do not intend topermanently maintain anti-takeover measures. In order to further increase our corporate value, we have set goals in the 2023
Medium-Term Management Plan and VISION 2030 and we havemade growth as a content group an utmost priority. We believethat the resulting increase in corporate value will reduce the riskof acquisitions, and we are in the process of improving capitalefficiency while reinvesting in the new value created by our investments in growth. As part of these efforts, we are maintaining anti-takeover measures, and we ask for your understanding
in this regard. →p.101
We are also receiving a variety of feedback on the land we
own in Akasaka. I would like to talk about this in terms of thesustainability of Akasaka Entertainment City. Broadcasting, oneof the core components of our business, cannot be sustained
without equipment and facilities that ensure a certain scale andperformance, and building renovation must be kept in mind. The
current TBS Broadcast Center will be updated and renovated in
the not-too-distant future. In such an event, we can build a new
broadcasting facility on the Akasaka site, and there is no need
to worry about searching for an alternative site or relocating.
We are proud to be the only broadcasting company that cancontinue our brand on the same premises, and we believe that
this is the driving force that will enable us to lastingly work withthe area of Akasaka and to promote Akasaka Entertainment
City. →p.16 →p.50

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ To our shareholders, investors, and other stakeholders

Sharing the path to growth through active
dialogue

We hold large and small meetings to engage in a dialogue withshareholders and investors, and we conducted tours for analysts
at several of our facilities in Akasaka in March. They were able
to see our large underground generator and cooling system fordisaster preparedness, and they gained a better understandingof our business preparations and approach as a public news
organization.
We actively engage in a dialogue with domestic and foreign
institutional investors and shareholders through individual
meetings and briefings for individual shareholders. We attempt
to respond to opinions and requests received through dialogue
wherever we can, such as by enhancing our integrated reportand results briefing materials, so that we can share the story of
our growth with our shareholders and investors.
As a whole, the Group will continue to further refine theTBS brand to provide quality content by actively investing in our
EDGE strategy. We also aim to be recognized as a “partner in cocreation” with all of our stakeholders, including shareholders,investors, viewers, customers, employees, staff, performers,
interviewees, sponsors, clients, venture partners, and the local
community. We appreciate your continued understanding andsupport of the TBS Group.

31

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Content Innovation& Technology

Value Creation Story

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Financial Highlights

Revenue

Operating income/Operating income margin
366.3

368.1

358.2

356.7

Operating income

325.6

20.3

20.7

5.7

5.6

18.5

5.1

Simplified EBITDA (operating income + depreciation)

Operating income（単位入ル）
margin33.4

320,000

27.9
13.1
3.7

10.8
3.3

240,000

33.6

34.1

FY2021

FY202225.5

160,000
80,000(¥ billion)(¥ billion)

FY2018FY2019FY2020

FY2021

FY2022

Total assets

Total net assets

320,000

1,067.8883.0

240,000

601.2

783.0

794.8

796.1

30.3

0

(¥ billion)

10.0

80,00080,000(¥ billion)

0
FY2020

FY2021

FY2022FY2018FY2019FY2020

10.0

Free cash flow (cash flow from operations + cash flow from investing)

Depreciation and amortization

27.3

28.9

240,000

591.9

FY2019FY202223.2

160,000

FY2018FY2021

39.6

320,000

160,000

0

FY2020Capital expenditures（単位入ル）

1,201.6
1,100.2

798.4

FY2019

Capital expenditures/Depreciation and amortization

Total assets/Net assets（単位入ル）FY2018

10.0

10.0

26.9

14.0

13.6

18.8
14.1

14.3

13.9

13.3

13.4
(¥ billion)

FY2021FY2018FY2019FY2020

FY202210.0(¥ billion)

FY2018FY2019FY2020

FY2021

FY2022

10.0

-11

32

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Non-Financial Highlights

Employee training

CO2 emissions

Efforts to achieve the SDGs

(Broadcast Center and buildings in the Akasaka Sacas Cultural Facility)

21,916

20,054

18,267

Number of TGU courses:

Total hours of broadcasting:Total number of participants*

Total number of programs:(FY2022)

SDG project entitledthe “WEEK to Make the Earth Smile”
Continued from 2020
Involving news, information, variety andother types of programs

160

18,513

17,451

18,000(tons)FY2018FY2019FY2020

FY2021

FY2022

Promoting the honing of Group employees andthe exchange of human resources through training at
TBS Group University (TGU), in-house University*Based on applicantsZero CO2 emission broadcasting

Ratio of female managers (TBS Holdings + TBS TV as of July 1, 2023)

During the “WEEK to Make the Earth Smile”(May 14-20, 2023), all broadcasts used green powerfrom renewable energy sources

Reduction of approx.

105 t-CO

131
213

Ratio of Outside Directors■ Outside Directors■ Inside Directors

15.76%

40%

We are promoting efforts to foster and create a
corporate culture for female managers in order to have
20% or more female managers by the end of FY2025

Appointment of one female outside director in FY2023
4 out of 10 members of the Board of Directors areoutside directors

2This is equivalent to the amount of CO2 absorbed byapproximately 7,500 cedar trees in a year**Results for 2021, using coefficients published by the Ministry of theEnvironment and the Ministry of Economy, Trade, and Industry (METI)
on 1/24/2023

33

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Message from the Director of ESG Strategy

A diverse workforce gathered under the banner of VISION 2030
shall achieve sustainable growth

Masaya Chisaki
Company Director and Director of ESG Strategy,
TBS HOLDINGS, INC.
Managing Director, TBS TELEVISION, INC.

In the previous issue, the 2022 Integrated Report, we talked
about how “TBS will be a starting point for influencing society
to create a sustainable world.” In this issue, I would like to sharewith you what I am most excited about: human resources.
In order to achieve VISION 2030 as put forward by the TBS
Group, we need creators who can create content to give people wonderful “moments” and businesspersons who can use andmonetize that content in a variety of ways.

TBS can point to a wealth of content, including drama, variety, and news programs, from its long history, and every year we
receive approximately 200 times as many entries from aspiring
creators and journalists than the number of new graduates weplan to hire. New employees joining the Company are then usually assigned to the workplace of their choice. We are devising
ways to foster young people with care at each site. There are
an increasing number of workplaces that outline a career plan
and where senior staff members then fully teach the basics ofassistant directing and how to write project proposals. Efforts arealso underway to give young people opportunities to take onchallenges and assign them to programs and program segments.
We believe that conditions are ripe for a second or third “Naoki
Hanzawa” or “The Full-Time Wife Escapist” to emerge.
That said, businesspersons who monetize content have beenlacking in quantity and quality, in part because they have long
operated under a business model that specialized in terrestrial broadcasting. This is why we have been actively promoting
mid-career hiring, with a focus on hiring people with such skills,
over the past few years.
By being a leader in our industry in adopting VISION 2030
and our EDGE strategy, we have been able to attract people who
we previously had trouble finding in the industry, such as those
who want to “disseminate TBS’s content to the world,” “develop new businesses revolving around content,” and “implement
M&As with or by TBS.” These people are already serving as immediate assets.

In order to ensure that everyone who works at TBS can doso fairly and safely, we have also discussed and organized ourthoughts on human rights and we drafted the TBS Group’s Human Rights Policy. We have also prepared Sustainable Procurement Guidelines to ensure that we pay close attention to the human rights of everyone we work with in the supply chain. →p.75
VISION 2030’s phase of “sowing seeds” ends in FY2023,
and the second phase of Development and Growth will begin
in FY2024. In preparation for this, we are making more mid-career hires than hiring new graduates in FY2023. The skills of thepeople we have brought in from the outside are stimulating ourexisting employees, and we feel that the Group as a whole isundergoing a major transformation as a result of this new synergy. We hope to accelerate this trend and foster human resources
who will not only help to achieve VISION 2030 but also increase
TBS’s value long into 2040 and 2050.
In the near future, TBS promises to create innovative content
and new businesses to bring you wonderful “moments”. Throughthese efforts, we shall increase TBS’s value and achieve sustainability. We ask that you keep an eye out for us in the future.

34

Our Social Mission

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

Our Social Mission as a Media GroupTo Be a Trusted Presence in an Age with a Deluge of Information
Key issues for the TBS Group (as of May 2022)
From materiality 02•E stablishing standards and systems to ensure overwhelming
trust in all content• F urther refining our capabilities as an information lifeline in
the event of a disaster•S erving as the starting point for influencing society throughcontent on achieving the SDGs

TBS was created as a broadcaster that is entrusted with aportion of the airwaves, which are public property, and it
has a social mission both as a commercial enterprise and as
a news organization.
Natural disasters have increased in both scale and frequency over the past few years. In such an event, TBS willaid people in protecting their lives and livelihoods as an
information lifeline. It will also serve as a “starting point”
for society to solve the many problems faced by the earth
and the world. This awareness of its social mission pervades TBS’s content, from news and information programs
to dramas, sports, and variety programs.
As a prerequisite to fulfilling TBS’s social mission,
President Sasaki has always exhorted us to earn the overwhelming trust of our viewers. The spread of the Internet
and social media has allowed anyone to disseminate information, but the world is also full of information that
may or may not be true. In times like these, we are always
aware of the danger of betraying our viewers, listeners,
and customers, which would cause our credibility to instantly vanish. We call on our partner to be vigilant as well.

The Global
Environment

01
04

Management
Structure

Creating globally
beloved originalcontent

Performance andCorporate Data

02
05
Fulfilling oursocial mission asa media groupTo provide information to save lives

A news coverage network that spans the country

As part of the information infrastructure for the public, TBS is
ready 24 hours a day, 7 days a week, to promptly disseminate
information to save lives, regardless of the circumstances.
When a disaster strikes, the initial response is crucial for both
victims and broadcasters. When an earthquake with an intensity
close to 6 on the Japanese seismic intensity scale (an intensity
higher than 5 in Tokyo’s 23 city wards) is detected in Japan, TBS
News, which serves as an emergency broadcasting site, fulfills itsrole as a broadcaster that has been entrusted with the public airwaves. In principle, the division sends out every employee, evenon holidays or late at night, and it promptly prepares special
news programs.
Routine preparations are also important. In principle, theNews Division conducts earthquake drills every week. All staff
members, from newcomers to veterans, participate in confirming the initial response so that accurate information can bedisseminated without confusion immediately after a disasterstrikes.

Delivering
wonderful
Delivering
wonderful
A broadsystemof news coverage is also needed
to ensurethatto all the“moments” toor
everyonecorrect“moments”
informationis conveyed without exaggeration
omislives on earth
we work withsion. In addition to the Head Office in Tokyo, TBS has 19 sitesin Tokyo and six other prefectures where cameramen and otherstaff are stationed to cover the Kanto area, delivering information from the field as quickly as possible. Outside of the Kanto region, we can draw on JNN’s broadcasting network, which
consists of 28 TV stations nationwide and TBS as the key station. When a major disaster strikes, local stations are the first toreport the news. In the interim, network stations like TBS sendin support to provide continuous and extensive coverage anddisseminate information.
In an age of numerous concerns, such as worsening environmental problems and constant conflicts around the world,
media outlets with a solid foundation are necessary. We will continue on our journey to be a truly trusted media outlet.

Steps in reporting on a disasterCopy Department,
News and information
programs
Domestic affiliates,
Correspondents
JNN’s 28 stations

11 overseas branches

Terrestrial television

TBS News(aggregation of
information and copy
editing & submission)

Satellite broadcasting
BS & CSRadio
Web media/Social
media

35

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Our Social Mission as a Media GroupInterview with Our Journalist

A reporter wearing a bulletproof vest heads to the battlefield yet again today
Traveling to the front lines of conflicts even during
the COVID-19 pandemic

Hiroshi Sukagawa
Middle East Bureau Chief

profileJoined TBS in 2006. After working in the TV Sports Division, he was assigned to
the TBS News in 2010, where he oversaw the Metropolitan Police Department
beat in the National News Department and the news program “News Studio”
before becoming JNN’s Middle East Bureau Chief in 2019. He received theVaughn-Ueda Memorial International Journalistic Prize, given to journalists
for outstanding achievements in international reporting.

2020 was when COVID-19 was raging and the whole world
seemed to have stopped. However, life went on as before in theconflict zones that I was covering. Gunfire, air strikes, suicidebombings. Their daily lives were filled with more dangers than
COVID-19. Nevertheless, almost every Japanese media outlet
has curtailed its overseas coverage, and such harsh everyday
conditions have seldom been reported.
However, TBS was different. When those of us in the field
told our superiors that now is the time to tell the story, they
always respected our judgment, with the utmost care for oursafety, and allowed us to cover events. Decisions will be made ona case-by-case basis to ensure maximum performance. TBS wasable to put this into practice even during the pandemic.
As a result, we were among the first to enter the scene of amajor explosion in Lebanon, where most media did not go, theconflict in Gaza, where nearly 300 people were killed, and theturmoil in Afghanistan following the withdrawal of US troops.
We were able to convey to the world the plights of the people
at those scenes.

videos have received 2.5 million views. Last December, we also
produced the documentary “A Conflict Zone Reporter” as acompilation of our interviews in places such as Gaza, Ukraine, andAfghanistan, and the film was shown at 35 theaters nationwide.

Hoping for a world without conflict
Human society is unequal. That may sound a bit cliché, but I
am even more convinced of this since I have been assigned asa correspondent for the Middle East and Africa region. Thatsaid, this is why continuing to cover conflicts, disputed regions,and refugees flowing from around the world is meaningful. To
be honest, there would be no more jobs like mine if conflicts
were eliminated from the world and if people’s misery were
eliminated, but that is what I really want. But life doesn’t workthat way. So we have to keep reporting. To reduce conflicts asmuch as possible and to enable as many refugees as possible tolead lives in which their basic human rights are protected.

Expanded avenues for dissemination
Seeing avenues for dissemination expand beyond news
programs is also gratifying. My appearance on the Golden timeshow “Crazy Journey” helped to convey the reality of conflictzones to a larger audience, including young viewers. TBS is also
attempting to put out videos on YouTube. The most watched36

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

SDGs and TBS’s Business Model

As a starting point for influencing society, we propose actions for the future through ourcontent with the aim of creating a virtuous cycle of corporate value and social value.
From each moment, a better tomorrow.

VISION 2030 &TBS’s Brand Promise
We aim to create entertaining and inspiringexperiences that move hearts and minds.

02

Fulfilling our social mission
as a media group

Inputs

Outputs

Outcomes

Working with partners

SDG campaigns on terrestrial TV,
BS TV, radio, and the Internet“WEEK to Make the Earth Smile”

Increasing
corporate
value

→p.38

■ Serving as the starting point for influencing
society through content on achieving the SDGs

■ I ncreasing revenue fromadvertising and elsewhere

Working with the UN SDG
Media Compact and the JNN/JRN Network

Working with local communities(Akasaka and Midoriyama) andyoung people

A campaign on the UN SDG Media
Compact
The “Promise of 1.5 ºC—Act now
to stop global warming.”■ I ncreasing the value of theTBS brand

Increasingsocialvalue■ S DG event entitled “Plaza that
Makes the Earth Smile”
 he radio program “SDGs■T
Junction” and a community
for young people■A ction Book →p.39■S olving environmental andsocial issues■C ontributing to achieve the

SDGs

37

SDGs

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

SDG Campaign “WEEK to Make the Earth Smile”“Zero CO2 Emissions Broadcasting” All Week Long Through the Use of Green PowerThe SDG campaign entitled “WEEK to Make the Earth
Smile” celebrated its 6th anniversary in the spring of 2023.
During this year’s campaign, programs were broadcast
the entire week using green power. On the last day, we
broadcast a major 8-hour live special entitled “SDGs Day:
Let’s achieve the SDGs together” for the first time.
The theme of the “WEEK to Make the Earth Smile” campaign
in 2023 is “Let’s achieve the SDGs together,” which is a step forward from the previous “Let’s try action, SDGs.” The special included the message that all of us - TBS, the viewers, and society- should work together to achieve the SDGs.
The campaign ambassadors were the comedy duo Bananaman (Osamu Shitara and Yuki Himura) for the second time since2021,along with Mone Kamishiraishi,Yosuke Sugino, Soichi Noguchi, and announcer Makoto Hibi. Many corporate partners havecontinued their involvement from the first campaign, making it a
campaign that symbolizes TBS being "the leading SDG station.”
In addition, the power used at the TBS Broadcast Center andfor broadcasting during the campaign, totaling approximately
227,000 kWh, was under a “Green Power Certificate” for energy
from natural sources, so we achieved “zero CO2 emissions broadcasting.”
This means our carbon dioxide emissions
were reduced by approximately 105 tons
(t-CO2). (equivalent to the amount of CO2
absorbed by approximately 7,500 cedar trees
in a year)

As a first for this campaign, more than 20 of TBS’s variety,news, information, and radio programs combined to broadcast a
blockbuster 8-hour live special entitled “SDGs Day: Let’s achieve
the SDGs together” on May 20 (Saturday), the final day of thecampaign.
The theme of the program was “Turning Waste into Treasure!” The program focused on the SDG issue that viewers aremost familiar with, which is “garbage.” It conveyed the problem of waste disposal and covered various facets and detailed
aspects of topics such as food waste, recycling, reuse, and upcycling, encouraging viewers with the message “Let’s achieve theSDGs together!” Nowhere else in the world has there been sucha large special dedicated to the SDGs, and it attracted attention
from UN officials.

Highly rated by viewers in the age groupthat is “turning away from TV”
According to a viewing survey on the “WEEK to Make theEarth Smile,” 54.8% of viewers overall said they had “a favorable opinion of TBS,” though that number rose to 83.8% forviewers of the “WEEK” programs, indicating that the campaign has bolstered TBS reputation. The largest number of
respondents who said that the SDGs were “good subject matter” and that “such broadcasts give me a favorable impressionof the TV station” were age 15 to 19, indicating that the SDGs
are effective as an avenue to younger age groups, which are“turning away from TV.”

Viewing survey by Video Research (May 2023)
Good subject matter
(%)

73.8
61.3

15-19
years old

62.5

Such broadcasts give mea favorable impression of
the TV station
(%)
72.5

66.3

65.0
56.3

20-34
years old35-49
years old

50-69
years old

53.8

10.0

(program viewers)

38

SDGs

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

With Various Partners

Expanding the SDG Circle beyond BroadcastingIn addition to continuing to hold hands-on SDG-themed
events at locations such as Akasaka Sacas Square, TBS
has been promoting efforts to expand the SDGs beyond
broadcasting, such as by creating a community to think
about various social issues and propose solutions together
with young people.

The event was supported by Minato City and the Minato
City Board of Education. For the first time, we accepted school
field trips on the weekdays, and a total of 400 students fromfive elementary schools in the district and other areas visited thevenue.

SDG event entitled “Plaza that Makes the Earth Smile”
Since the fall of 2021, TBS has been holding a hands-on SDGthemed event for parents and children, “Plaza that Makes
the Earth Smile,” at Akasaka Sacas Square twice a year in
conjunction with the SDG campaign. Our goal is to provide an
impetus to link the 17 SDG goals to action in a realistic setting
beyond broadcasting. The theme of the November 2022 event
was “Changing the Future through Circularity!” as one of thesolutions to global warming. A “Zero Waste Hub” to separate
trash was set up in the center of the venue, and visitors and staff
worked together to sort trash from the venue into 10 categories.
The “Zero Waste Hub” has also been set up at subsequent
events, and the recycling rate has improved from 22% before
its setup to 77% in the fall of 2022 and to 81% in the spring of2023.
In May 2023, a record amount of content - more than 40
events - was provided on the theme of “Let’s achieve the SDGs
together.” About 15,000 people visited the exhibition overthe four-day period. They enjoyed a performance on “a piano
made from scrap wood” by Manamaru, a pianist currently
appearing on “THE TIME,” a hands-on experience with future TV
technology, and a workshop in which Ukrainian evacuees taught
traditional handicrafts to visitors.

“Meat-free” dishes that were devised by members together
with restaurants in Akasaka were actually sold at the “Plaza that
Makes the Earth Smile,” and a member-initiated workshop on
the theme of “finding your own identity” was held with dragqueen Durian Lollobrigida as the guest speaker.
In addition, a roundtable discussion between President
Takashi Sasaki and community members was featured in the“SDGs Action Book to Make the Earth Smile.”
https://www.tbs.co.jp/TBS_sustainability/pdf/actionbook2022.pdf

In October 2022, TBS Radio started broadcasting “SDGs
Junction - RADIO to Make the Earth Smile” (a segment within the
program “After 6 Junction”), hosted by announcer Maoko Hibi,
which features a variety of guests, such as members of “ACTION
to Make the Earth Smile,” and disseminate information on the
SDGs.

A community for young people entitled “ACTION to Make
the Earth Smile” is launched
TBS has launched “ACTION to Make the Earth Smile,” acommunity in which we work together with young people
to think about various social issues and propose solutions.
The community is made up of junior high school to university
students, and various actions are being taken based on “theinterests and concerns of young people & TBS’s ability todisseminate information as a media outlet.”39

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Dialogue between the Chairman and an Outside Director

How to expand our areas of business is at the stage of“sowing seeds and nurturing seedlings”

not something the Board of Directors has done before, but I
think we are off to a good start. →p.98
Things are going well so far, but I also believe that we must,of course, further accelerate the process. We are now in thephase of sowing seeds, but in the next Medium-Term Management Plan, we will enter a new stage of “sowing seeds and nurturing seedlings” to develop and grow the company.
We had experience with prior operations and broadcastingso those might be things we could take time doing, but I believethat an important issue as we enter the next phase will be how
to more quickly decide to explore new areas.
The Company should assist people who want to work on
new projects and who are happy to do so, it should put them in

Hitoshi Kashiwaki
Independent Outside Director

Shinji Takeda
Chairman and Board Director,
TBS HOLDINGS, INC.

charge of new businesses, and it should let them make decisions.
In the meantime, the Group as a whole will look at the businessfrom a larger perspective. We need to take on the challenge ofmaking decisions in a way that has never been done before, andin some cases, to make the organization flatter so that people■ Achieving VISION 2030

Deciding to explore new areas of business more
quickly
Takeda: Mr. Kashiwaki, you were appointed as an outside director five years ago, in 2018, and since then you have offered usa variety of advice. How do you view TBS Holdings’ Board of
Directors now compared to when you took office?

Kashiwaki: The biggest thing is that while working on VISION
2030 we discussed “how to expand our areas of business” rather than proceeding in existing areas. The plan was devised accordingly, discussions by management have very clearly laid out
our direction, and I am keenly aware that a system of checking
and reviewing the plan within a time frame is beginning to takewith various abilities can quickly maneuver under a leader.
Takeda: That's delegation of authority. We are appointing young
people to positions such as department managers and successively forming project teams consisting of young people. Thatsaid, the transfer of authority is still underway at the current
point in time.

shape. Setting numerical targets and working toward them is40

Dialogue between the Chairman andan Outside Director

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Age and position may be reversed in some cases, but I think
being united in creating something new and each of us displaying our abilities would be a good thing.
Takeda: But not changing is comfortable, everything is just fine.
That’s how we tend to operate.
Kashiwaki: That is correct. Which is why my management policy
is to “intentionally make things a little uncomfortable.”
Unfortunately, expecting everyone to do the same job forever is honestly difficult in today’s world, where the structureof the business is rapidly changing. I think the crucial thing isfor people in the organization to understand that a comfortable■ Human capital management

organization does not last simply because it is comfortable.
Moreover, I would gladly allow people like “individuals who“Comfort” is not enough to sustain an
organization.

stand out.” An organization grows as a whole when the people

Kashiwaki: Taking on a challenge in a new area means that theals should be highlighted more, and especially in relation to ourcompany is taking a risk, but it also means that the individuals

EDGE strategy. Instead of dragging those “individuals” down,

involved are taking a risk, so the crucial thing for the company is

we should catch up and overtake them. Doing so will enhance

to encourage and assist them.

our ability to move beyond current confines.

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Datais the sort of relationship where one feels like he or she is working in a workplace unlike any other.

■ What is needed for future change

We also need to decide to “stop”
Kashiwaki: That said, when trying to do something new we alsoneed to sometimes decide to “stop” doing some of the things
we are already doing.
Young people say, “Let me do this new thing,” which is
obviously great. However, in terms of management resources,and especially in terms of staffing, we cannot allocate people todo everything, so we must always review the situation at somepoint.

at the front of the pack run faster, so the abilities of individu-

Then the question becomes, “What should older people

Takeda: I think the key word for both an organization and indi-

do?” Instead of solemnly passing on the torch...if older people

viduals is “growth.” What we want to do is elicit a sense that awant to encourage young people in business, you can ask those

person is likely to grow as part of the TBS Group or the person’solder people, “Would you be willing to take on this role?” If they

inherent desire to grow. That is “human capital management.”

decide “to give it a go,” then they have a new reason for being

Kashiwaki: That will also lead to personal joy. I am growing, thea part of that company.

company is expanding into areas in which it has never been. This

41

Dialogue between the Chairman andan Outside Director

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Kashiwaki: But even if we say that we are going to stop engaging
in a business, there are many ways to do so. Even if TBS will not
engage in a business, for instance, it could be done elsewhere.
Being constantly under review, “discomfort” from it, constantchatter. That process will produce subsequent strengths.
Therefore, we have set out to create something new, but establishing that “things will not be the same as before,” which includes human resource issues, will take time. We may not be able
to speed up the process without making further changes, suchas by linking it to new aspects and inviting people to raise theirhands and say, “Why don’t we create a new business together?”

Strategies for
Business

Value Creation Story

Content Innovation& Technology■ What is required of management in the future

Setting goals higher

Takeda: Mr. Kashiwaki is also the chairman of the Nomination
Advisory Committee. We are talking about the choices we will

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Takeda: Those are encouraging words. I also updated mythoughts on the urgent issue of further accelerating the speedof change. I hope we can continue to have various discussions in
the future. Thank you for your time today.

make regarding the future structure of TBS’s management.
What sort of management qualities and human resources will
TBS need in the future?
Kashiwaki: Being the head of a broadcasting company naturally differs somewhat from being a typical manager. That said, as
we rightly proceed in existing areas and expand in other areas
as set out in VISION 2030, we should set even higher goals forourselves, or perhaps even greater goals to aim for as a company.
To that end, we may need to increase the number of ourpartnerships with various external organizations instead of relying on existing tie-ups. Thus far, we may have felt that we’ll
see how things go, look at the results, and make corrections...,but from here on out we should be more resolute, saying “thisis how we do things,” as we embark on this path as a whole. As
a result, people may think that “various things will change,” butI believe that things that should change need to change while
things that should stay the same need to stay the same. If moreof these things are identified and if management supports thosechanges...Such an approach should allow us to break away fromthe “broadcasting pack” of the past and become a more exciting
company.

42

Strate gi e s for B us ines sStage performance of “Harry Potter and the Cursed Child”©Maiko Miyagawa

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Business Overview

By Integrating the Three Businesses, TBS Seeks to Strike an Optimum Balance
for Both Growth and Stability▎TBS Group Companies▎Overview of Each Business
Delivering timeless and beloved content and services to the world

Six core companies

The Group’s most profitable business segment consisting mainly of TBS’s six
core companies: TBS TELEVISION, INC., which is the core of the TBS Group,
TBS RADIO, Inc. and BS-TBS, INC. which are core broadcasters, TBS SPARKLE,
Inc. and TBS GLOWDIA, Inc., which have a consolidation of program production and video and cultural business functions, and TBS ACT, INC. whichhandles technical, artistic and CG-related tasks.
While we enhance the value of our mainstay broadcasting business, wewill position the three fields of our streaming business, overseas business,and live entertainment as growth areas and further boost profitability todrive the performance of the TBS Group as a whole as we aim to achieve the
TBS Group VISION 2030. Furthermore, under the Akasaka Entertainment
City Plan, we are committed to our role of delivering wonderful “moments”
to everyone as a content provider.

Media andContent
Business(¥ million)

Terrestrial broadcasting Time
Advertising revenue
Spot
Other broadcasting revenue
Other real estate revenue
Other business revenue
Revenue from external customers• FY2021
Time
Spot
Other broadcasting revenue
Other real estate revenue
Other business revenue
Revenue from external customers
Terrestrial broadcastingAdvertising revenue

Media and Content
Business
81,26784,53936,979–78,627
281,414

Lifestyle BusinessMedia and Content
Business
79,12482,88637,068–86,151
285,230

Lifestyle Business––––
61,02361,023––––
66,391
66,391

Real estate andOther Businesses–––
15,831–
15,831
Real estate andOther Businesses–––
16,508–16,508Bringing customers a more comfortable, more individual lifestyle

StylingLife GroupThe StylingLife Group is developing a business based on “demand creation,” where it develops new needs in the market. In the main field ofbeauty & wellness, we aim to leverage our advantage in integrated manufacturing and sales to further develop and provide products with superior
profitability. Additionally, YARUKI Switch Group Holdings Co., Ltd. became
a consolidated subsidiary in June 2023.

*

LifestyleBusiness

Transforming Akasaka into a city that brings joy and happinessand provides wonderful “moments” to every visitor

Real estate
and OtherBusinesses

Affiliateaccounted forby the equity
methodBreakdown of revenue• FY2022

Media and Content Business
Revenue

Revenue and operating
income by segment(BCL China Inc.)**Added as a consolidated subsidiary and an affiliate accounted for by the equity
method in June 2023*

Affiliates accounted for by the equity method are composed of satellite
broadcasters, companies that plan and develop experience-based attractions, companies that sell cosmetics for the international market, andsports-related businesses. Two more companies were added in June 2023.

(¥ billion)
20

250
15

200
150

(includes planned values for FY2023)

10

100
5

50

Involved in real estate management, including the TBS Broadcast Center to
Akasaka Sacas and Midoriyama Studio City. We are also working on urban
development to help turn Akasaka into “the city offering the most moving
experiences in the world” with the Akasaka Entertainment City Plan.

Associated companies that support the TBS Group in both broadcasting and the EDGE domains

Operating income(¥ billion)
300

0Lifestyle Business
Revenue(¥ billion)75

FY2021

FY2022

FY2023(planned)

0

Real estate and Other Businesses

Operating income(¥ billion)
8

60

6

Revenue(¥ billion)
20

Operating income(¥ billion)
9

19
18

45
4
30
2

15
0

FY2020

FY2020

FY2021

FY2022

FY2023(planned)

0

7.5
17
16
15

6
FY2020

FY2021

FY2022

FY2023(planned)

44

Message from the
President

Media and Content

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate DataMedia and Content BusinessBusiness structure

Six core companies

Competitive superiority
Leveraging the strengths of the largest reach in the media industry, content production and comprehensive promotion capabilities cultivated over many years, and overwhelming trustin the midst of information overload, this is the business segment with the largest earning power of the TBS Group. Whileenhancing the value of its mainstay broadcasting business, thesegment also includes many other different businesses in theareas of streaming, overseas business, and live entertainment.

TBS TELEVISION, INC.
The core company of the TBS Group that creates entertainment ina wide range of fields, including TV broadcasting, video content
such as streaming and movies, live entertainment, overseas business, and licensing.

TBS RADIO, Inc.

BS-TBS, INC.

In addition to its main business of radio broadcasting, TBS Radio also invests in events and films, andoperates a housing business (show houses).

A TBS-affiliated satellite broadcaster that provides BS
digital broadcasting. It began broadcasting in 4K in
2018, creating realistic, immersive productions withultra-high-definition images.

Opportunities
Reach across all platforms in competitive and growth areas■

 evelopment of next-generation viewers and greater reachDGrowth and expansion of digital business, including streaming■ 
Borderless content distribution■ “Goods - Time - Emotion” consumption behavior, experienceand fulfillment needs■ 
Corporate, organizational, and individual initiatives to address social issues (SDGs)■

TBS SPARKLE, Inc.

TBS GLOWDIA, Inc.

TBS ACT, INC.

One of Japan’s largest video production companies
that makes programs and content across all genres,from dramas, entertainment shows, documentaries,
movies and anime to news, information and sports.

TBS GLOWDIA provides a wide range of services,
including entertainment and events, program andmerchandise sales, video-related businesses such as
DVDs and streaming, radio program production,and broadcasting and digital technologies.

One of Japan’s largest general production companies working in technology, art, and computer
graphics. It has the equipment and human resources to handle all kinds of content production,from broadcasting and stage shows to events andstreaming.

CS-TBS, INC., SEVEN-ARCS Co., Ltd., TC Entertainment Incorporated, TBS International Inc.,

Risks and issues

TBS MEDIA RESEARCH INSTITUTE Inc., NICHION, INC., MANGA BOX, Co., Ltd., THE SEVEN, Inc.

Weighing the risks and benefits of diversification■

Business environment
While remaining cautious against the spread of COVID-19, Japan tried to balance disease prevention with economic activity, and businessconditions, especially consumer spending, continued to recover slowly since there were no movement restrictions or other pre-emergency
measures. At the same time, however, we need to remain cautious of the risk of a downturn in overseas business conditions due to a
global credit crunch and the impact of the price increases caused by the steep rise in energy and raw material costs on household budgets.
The TV advertising market, which is highly susceptible to economic trends, remains difficult to predict, but we believe that capturing demand in non-broadcasting businesses is important as events and entertainment performances recover with the relaxation of restrictions
on going out, and as we continue to provide video content to overseas OTTs.

 ependence on terrestrial TV advertising revenue and domesD
tic economic fluctuations■ Inter-media competition and content acquisition■ 
Event restrictions because of the COVID-19 pandemic■ 
Copyright and other intellectual property rights■ 
Increase in capital expenditures due to equipment upgrades■ Technology, systems, and security becoming obsolete■ 
Human resource development, organizational and workstylereform■ 
Growth strategy investment & R&D

45

Media and Content

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Media and Content Business Strategy
Our goals
Even after internet advertising spending overtook TV advertising
spending in 2019, TV advertising revenue continues to occupy alarge percentage of the TBS Group's revenue, and we continue
to value our role as a core broadcaster. However, we need toadapt flexibly to society's needs as media rapidly diversifies. As
we work to enhance the value of broadcasting, we will also aim
to deploy a greater variety of businesses in addition to television
by extending our ability to reach through the EDGE strategy andincreasing the proportion of sales occupied by non-broadcasting
businesses.

Growth strategies

Always bringing new entertainment as the best
content provider
Digital/global domain
TBS Television, Inc. provides programs and a lot of original content broadcast on TBS to overseas over-the-top (OTT) media service providers such as Netflix, Amazon Prime Video, and Disney+.
Going forward, THE SEVEN, Inc., a new overseas strategic company established in January 2022, will plan and develop high-end
content separate from terrestrial broadcasting. It aims to create
two or three global hits within five years to demonstrate the TBS
Group's presence in the overseas streaming market.

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Primary KPIs

Live entertainment domain
As part of the Akasaka Entertainment City Plan, the long-running stage play “Harry Potter and the Cursed Child” opened inJuly 2022. TBS’s real live content aims to evolve further together
with the city of Akasaka.

• Terrestrial
broadcast ratings•N umber of videos
streamed•N umber of CS
subscribers
 vent revenue•E•V iewersatisfaction• Radio listener
ratings• Number oftickets soldBusiness topics and case studies

Substantial growth in the streaming business andincreased revenue due to a recovery of events andperformances
Terrestrial broadcasting advertising revenue reduced due tothe lack of large-scale special sports programs, but free video
streaming in Japan and paid streaming both in Japan and overseas performed strongly, and there was a rebound from the previous year which was severely affected by COVID-19. There wasalso significant growth in events and performances such as thestart of the long-running performance of the “Harry Potter andthe Cursed Child” stage play, and the successful “Paris Saint-Germain Japan Tour 2022” in soccer, so the segment as a whole secured increased revenue.

TBS and U-NEXT sign partnership agreement basedon strengthening capital and business allianceTo match the timing of the UI/UX merger between Paravi and
U-NEXT on July 1, TBS acquired a 20% stake in U-NEXT and ispursuing further collaborative businesses such as large-scale live
streams and original content production.
On March 31, 2023, U-NEXT merged with PPJ, which managed Paravi. This made it the largest video streaming platformbusiness in Japan with sales of over 80 billion yen, over 3.85
million paying subscribers and more than 360,000 episodes of
streaming content.* Then on July 1, the content available on
the Paravi service was transferred to the U-NEXT service. We willtake the opportunity to create even greater business synergy
through this strengthened capital and business partnership.
Furthermore, this additional investment from TBS gives use
the potential to greatly increase our ability to procure external
content and plan and produce original content, and we will
strive to expand the business even further through cross-platform broadcasting and streaming initiatives such as large live
events and the advance streaming of special dramas.
*The numbers of paying subscribers and content episodes are simple totals(as at the end of May 2023)

46

Message from the
President

LifestyleStrategies for
Business

Long-Term Vision andMedium-Term Management Plan

Value Creation Story

Content Innovation& Technology

Lifestyle Business

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate DataYARUKI Switch Group Holdings Co., Ltd. became a consolidated subsidiary in June 2023

Business structure

Structure of the StylingLife Holdings Group→p.23

Competitive superiority

StylingLife Holdings Inc.

Through the strengthening of the retail business with private
brand products that leverage the development and manufacturingfunctions of BCL COMPANY, and the promotion of cosmetics development utilizing the sales capabilities and retail business data possessed by PLAZASTYLE COMPANY, the segment has achieved highprofitability through its superiority in integrated manufacturing
and sales that mutually leverages robust product sales functions.

Group management platform

PLAZASTYLE COMPANYBCL COMPANY

General merchandise retail sales business

Beauty & wellness business

Retail of household goods
Directly-managed shops
Franchise business
Licensing business

Development, manufacture and sales of cosmetics
and quasi-drugs, etc.
Manufacture and sale of cosmetic tools,
hairdressing equipment, and scientific equipment

Opportunities
LightUp Shopping Club Inc.

Beauty & wellness business

Mail-order business

Development, manufacture and sales of cosmetics
and quasi-drugs, etc.
Manufacture and sale of cosmetic tools,
hairdressing equipment, and scientific equipment

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

Number of shops

Lifestyle business
Content• Household goods, apparel, etc.
• Cosmetics, quasi-drugs, etc.

Platform• Stores (PLAZA/VECUA Honey)

PLAZA

CP Salon

LightUp

129 stores

1,240 stores

4 stores• Facial aesthetic care, etc.

Business environmentBCL(VECUA & ROA)

10 stores• Wholesaling (domestic drug stores)
PLAZA PASS

• Licensed retailers (CP Salon)• Character licenses

Developing a business based on “demand creation”
where we develop new needs in the market

CP Cosmetics Inc.

• E-Commerce & catalog sales• Overseas general trade

PLAZA members

PLAZA appmillion

4.68 million

5.89 downloads

107% YoY

122% YoY*as of end of March 2023.
The figure for PLAZA app is the total number of downloads

After the lifting of the self-imposed restrictions that the Japanese government called for in response to the COVID-19 pandemic, there
were signs of a recovery in demand for the core general merchandises retailing business, as the flow of people began to recover andinbound demand increased. However, the future of the downturn in customer behavior remains unpredictable due to issues such as the
sharp rise in item prices in Japan caused by the drastic depreciation of the yen due to the effects of the global economy and the state ofworld affairs coupled with higher raw material and distribution costs. At the same time, we will aim to increase the profitability of thewhole StylingLife Group by pursuing development that uses integrated manufacturing and sales by increasing EC through an accelerating
digital shift, developing cosmetics to meet customer's diversifying tastes and focusing on the Asian market.

■

 espond to changes in consumer mindset or behavior
RImprove proposals targeting younger demographics, where
demand for cosmetics is increasing, by integrating manufacturing and sales■ 
Increase customer contact times and opportunities throughenhanced coordination between retail shops and web/social
media presence■ Respond to market changes / “Life post-/with COVID-19” leading to enhanced mail-order and regional (FC) development■ 
Reorganized drugstore market leading to faster proposals tomajor distributors■

Risks and issues
Flexible response to changes in the business environment■

 ore diversified product development due to a falling birthMrate, an aging and declining population, and lifestyle changes■ 
Strengthen digital capabilities including e-commerce and compensate for rural gaps in the currently urban-focused network of
directly-managed stores in preparation for more frequent andmore severe disasters such as earthquakes, typhoons, and infectious diseases, as well as more frequent unseasonable weather■ Accelerate overseas business to reduce focus on Japanese business47

Message from the
President

LifestyleLong-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Lifestyle Business Strategy
Our goals
The StylingLife Group seeks and nurtures buds with growth potential that lie dormant in existing businesses, as well as thingsof value that can take on new challenges beyond the domainsof existing businesses. It aims to maximize brand value by using
these strategies as an engine for growth. Moreover, the enormous amount of customer data owned by the StylingLife Group,
which has a nationwide network of stores and receives tremendous support from Gen Z customers, is important informationthat contributes to data-driven management in the TBS Group.
We are building a system to securely manage and analyze thisdata in order to expand group synergies. We are also confronting our social responsibility as a corporation and focusing on
solving social issues through ESG.

Growth strategies

Experiencing growth in clothing, food, home andbeauty categories and continuing to enter new
business domains
We will aim to further boost the PLAZASTYLE COMPANY generalmerchandise retail business through an efficient store opening
strategy, increased brand value and IP strategy for PLAZA. At thesame time, we will endeavor to create new value that goes beyond existing businesses in order to reach a wide range of customers. We will do this by developing products and expanding
channels (by predicting trends by analyzing inbound demandand overseas market demand), enhancing e-commerce, and in-creasing our target range through generational analysis. We will
pursue product development clearly differentiated from othercompanies by adding extra value that creates more fulfilling lives.

Business topics and case studies

Retail sales remain strong
Overall increase in revenue and profit
In the StylingLife Group in FY2022, the LightUp Shopping Club
Inc. mail-order business slowed down from its strong performance the previous year and recorded lower income and profit. For the beauty & wellness business, BCL COMPANY, whichdevelops, manufactures and sells cosmetics, continued to facechallenging circumstances, but due to the increase in sales for
CP Cosmetics and other factors, revenue and profit increased in
the business as a whole. Furthermore, PLAZASTYLE COMPANY,
a core general merchandise retail sales business, experienced
a surge in revenue and profit as the flow of people recovered
following the lifting of self-imposed restrictions during the
COVID-19 pandemic, so the StylingLife Group as a whole recorded both increased revenue and profit.

Full-scale entry into the intellectual training andeducation business
Since our founding, our broadcasting business has produced awide range of video content that has delighted, moved, surprised and educated many children.
Using that inbuilt nature, we plan to go beyond the framework of broadcasting to give children many dreams and hopes

and the power to live through our intellectual training and education content.
In this age of volatility, uncertainty, complexity, and ambiguity (VUCA) where the future is hard to predict, “the power tothink and create for yourself”, i.e. “creative power,” is becoming increasingly vital. In light of that, the intellectual training
and education industry is beginning to introduce “inquiry-basedlearning” and the need for video content educational material
to deepen learning is growing.
“Creative power” and “content production ability” are precisely TBS's greatest assets, so by imparting that knowledge andknowhow, we intend to contribute to the development of humanresources who can create new value with their own strength andcarve the way into the future even in a world with no answers.
As an indispensable partner in developing and commercializing educational content, welcomed YARUKI Switch Group Holdings Co., Ltd., a company with one of Japan’s largest educationalbases at 130,000 paying members and knowledge about marketing intellectual training and education businesses, as a consolidated subsidiary on June 29, 2023.

48

Message from the
President

Real Estate and Other

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Real Estate and Other Businesses
Business structure

TBS HOLDINGS, INC./TBS TELEVISION, INC./TBS HEXA. Inc.
Involved in the leasing of land and buildings owned by TBS HOLDINGS, INC., and
TBS TELEVISION, INC. (Akasaka Biz Tower, Akasaka The Residence, THE HEXAGON,etc.) and in the maintenance and operation of the TBS Broadcast Center. Also handles urban development in the Akasaka Entertainment City Plan area, supporting
the TBS Group’s entertainment from an infrastructure and facilities perspective.

Midoriyama Studio City, Inc.

TBS Sunwork, Inc.

Midoriyama Studio City’s main business is the managementof studios, centered on Midoriyama Studio, one of Japan’slargest television studios, and outdoor sets and art production facilities.

TBS Sunwork supports the infrastructure of the entire TBS
Group and provides lateral support, including TBS Broadcast Center’s equipment maintenance and management,
security, temporary staffing, and outsourcing of accounting, general affairs, and payroll work.

Akasaka Heat Supply Co., Ltd.

TBS Kikaku Co., Ltd.

Akasaka Heat Supply’s main business is supplying heat for
air conditioning and hot water supply to buildings and facilities in the Akasaka 5-chome and Akasaka Sacas areas,such as the TBS Broadcast Center, Akasaka Biz Tower, TBS
Akasaka ACT Theater, and Akasaka Park Building.

TBS Kikaku operates and manages parking lots as well as
an insurance agency.

Real Estate and Other Businesses
Content

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

• Residential condominiums• Akasaka The Residence• Studios, parking lots

• Midoriyama Studio

Real estate managed by the TBS GroupTBS Broadcast Center/Akasaka Biz Tower/
Akasaka The Residence/TBS Akasaka ACT Theater/
The Hexagon/Midoriyama Studio City/ TBS Housing, etc.

• Heating and cooling, electricity

Business environment
After the spread of COVID-19 from 2020 onwards, telework took root as a new working style and became a contributing factor to thecontinuing drop in rents and increases in vacancies in the office market in Tokyo business districts. This was worsened by Russia's invasionof Ukraine in FY2022 which sent world fuel prices soaring, creating a highly unfavorable environment around the real estate business.
Even in this business environment, however, Akasaka Biz Tower, Akasaka The Residence and other properties owned by TBS have maintained high rent level and extremely low vacancy rates.

Competitive superiority
The segment has several profitable properties in the Akasaka
area, including Akasaka Biz Tower, offices, stores, and residential condominiums. One of the segment’s strengths lies in generating stable profits through its real estate leasing businessthat makes use of these properties. The segment will promote
the construction of an even stronger foundation to achieve the
Akasaka Entertainment City Plan.

Opportunities
Increase in revenues from both new and existing facilities
associated with the Akasaka Entertainment City Plan■Increase in rental income due to the acquisition of properties
in the Akasaka area
■ 
Increase in revenue from attracting customers to existing facilities because of promotion of the Akasaka Entertainment
City Plan■ 
Increase in number of spaces that can be utilized throughthe acquisition of land and buildings, dramatically expanding
range of entertainment on offer

Risks and issues■

 ecrease in the utilization rate of rented real estate due toDworking style changes such as telework■ Impact on rental income due to changes in the lease and otherreal estate markets■ 
Increase in operating and maintenance costs due to soaring
raw material and energy prices and personnel expenses■ 
Increase in costs and investment expenditures due to soaring
real estate market value

49

Real Estate and Other

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Strategy for Real Estate and Other Businesses

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Primary KPIs
• Operating rate
• Occupancy rate

Our goals
To achieve VISION 2030, we will (1) Improve and enhance theBroadcast Center, studios and live entertainment facilities tosupport and boost the performance of content production andexperience businesses, and (2) Promote office real estate andreal estate businesses that use land the company owns so thatthey can contribute to the growth of the Group as a whole byserving as a revenue base for Group management.

Growth strategies

Producing content called “space”
Remaking Akasaka into a city that provides
wonderful “moments”
We have positioned the Akasaka Entertainment City Plan at
the center of the growth strategy of the real estate business inparticular. As part of that plan, a district development plan wasdrafted for the 2-chome and 6-chome areas in Akasaka. The plan
was certified by the Prime Minister in November 2021 as a national strategic city planning building development project aspart of the National Strategic Special Zone Plan.
We will produce content called “space” in the Akasaka area
to foster an environment for delivering the best entertainment,
and we will evolve Akasaka into a city that provides wonderful“moments.”
Moreover, we established the Akasaka Entertainment City
Project Division in July 2023. It unites the previously separate
Realty Strategy Bureau and the Akasaka Entertainment City Pro-

motion Office into one division, which will now work in solidarity on this project.

Capital investments related to the Akasaka
Entertainment City Plan
FY2021

FY2022

16,132

14,668(¥ million)

Business topics and case studies

Stable revenue base remains intact.
Active investments into energizing Akasaka
continue
Despite the lingering impact of the COVID-19 pandemic in
FY2022, business performance remained strong and revenue increased. However, due to factors such as an increase in utility
costs, overall financial results showed a decrease in profit but weare still generating stable profits.

Akasaka Entertainment City Plan initiatives■W e made active capital investments to energize Akasaka. For
example, TBS Akasaka ACT Theater was given a new lease oflife as the Harry Potter Theater with the Akasaka Biz Tower
decked out in the world of Harry Potter, and Akasaka beganfeaturing a Harry Potter Cafe and the Harry Potter – Mahou
Dokoro themed shops.
■W e opened “Brunch Park,” shop and restaurant produced bypopular infotainment show “King’s Brunch,” on the first floor•R enewableenergy usage
rate•C O2 reduction
rateof The Hexagon, right in front of the TBS Broadcast Center.
It has become a space to enjoy the TBS experience throughcollaborations with TBS dramas and popular artists and thesale of program collaboration merchandise.
■ Akasaka BLITZ, which had until now been used as a live entertainment venue to deliver a variety of contents, was reborn as
TBS Akasaka BLITZ Studio, a television studio. The first floor isan exhibition area for collaborations with popular programs
while the third floor contains a viewing area where visitors
can watch programs being filmed in the studio. Additionally,
from the standpoint of the SDGs that TBS is promoting as aGroup, we have reused 1.4 tons of broadcasting equipment
which were used at the Broadcast Center and were scheduled
for disposal to produce objects of art which are on display inthe foyer in front of the studio.

50Va lu e C re at i on Stor y“I Will Be Your Bloom”

Message from the
President

Growth Trajectory 1

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

1951-2008

Cultivating Content Creativity over Generations. Staying in Tune with the Times to Earn Trust.
Staying in Tune with the Times to Earn Trust.
After launching its radio broadcasts in 1951, TBS began broadcasting TV programming in 1955 to become a two-pronged
force on the airwaves. The company, pursuing its broadcasting activities on public radio waves, has worked to provide
information quickly, accurately, and across far-reaching areas to earn the trust of society.
In addition to enriching its broad array of programming content and working to reach new heights of creativity, TBS also
operates commercial facilities, engages in Lifestyle Business, and takes many other steps to diversify its efforts so that it cancontinue to form closer, deeper connections to people’s everyday lives.
Construction on Midoriyama
1981: Revenue: Operating income
1979
1951

Radio broadcasting launches

1955

TV broadcasting launches

1959

TBS signs agreement with JNN News

Founding
Radio

TV

1960

TBS reaches revenue of
100 billion yen

Studio City is completed

1987

24-hour broadcasting launches

1994

Construction on TBS Broadcast
Center is completed

1990

1996

Akasaka BLITZ opens

1998

CS News broadcasting launches

2000

BS broadcasting launches
TBS Akasaka ACT Theater opens

2008

Akasaka Biz Tower opens
SLG becomes a subsidiary

2004

TBS reaches revenue of
300 billion yen

TBS reaches revenue of
200 billion yen

TBS lists on the 1st Section of
the Tokyo Stock Exchange

1951-1976
Stage Global market Realproduction expansion estate

Film

Japan’s “bubble” economy collapses

Growth and Decline
Radio

TV

1977-1995
Stage Global market Realproduction expansion estate

Film

Consolidated accounting

Global Financial Crisis

Progress and New Endeavors
Radio

TV

CS

BS

1996-2008

Stage Global market Realproduction expansion estate

Film

Lifestyle

TBS established itself as a media organization by offering the news in a multidimensional way that leverages the responsive,
in-the-now medium of television, with
JNN providing thorough coverage, anchorsdelivering compelling analysis, and teams
reporting live on events as they happen.

A powerful, moving story that grew out ofTBS’s efforts to take its creativity to the nextlevel, “I’d Rather Be a Shellfish” became thefirst Japanese TV drama export when it hit
the West German airwaves in 1961.

TBS rolled out a string of new, uniqueshows that pushed the boundaries of the
television medium. Examples included“The Best Ten,” a music program that featured not only Japanese artists but also appearances by stars from overseas televised
live, and “Takeshi’s Castle,” which brought
action and variety elements together for athrilling, fun-packed viewing experience.

On video, “Tell Me That You Love Me” sold
120,000 copies in its first fiscal year, making
it one of the biggest drama hits the video
industry had ever seen. Putting popular
programming on video proved pivotal indriving the development of new businesses.

The emergence of young, up-and-coming
producers with roots in the TBS lineage givelife to a string of hits, including “GOOD
LUCK!!,” “Crying out Love, in the Center ofthe World,” and “ROOKIES.”

The company’s theatrical operations alsocame into full swing with the openingof Akasaka BLITZ and TBS Akasaka ACTTheater. One notable stage production
was a ballet performance by the Tetsuya
Kumakawa K-BALLET COMPANY, whichbroke from the conventional ballet moldby selling out on its first day of ticket
availability.

“NewScope”“I’d Rather Be a Shellfish”“The Best Ten”

“Tell Me That You Love Me”“Crying out Love in the Centerof the World”“Symphony No. 9 Ludwig van
Beethoven” (ballet)©Hidemi Seto

52

Message from the
President

Growth Trajectory 2

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

2009-2030

Building a Business Model for Oﬀering
Offering Powerful
Powerful Content
Content acrossacross Wide-Ranging
Wide-Ranging Platforms
Platforms
With smartphones and social media dominating the landscape, people are engaging with entertainment in ever-diversifying
ways. TBS has cultivated a wide range of business activities around its core in the broadcasting business. Looking forward, TBSwill use its broadcasting efforts and a diverse mix of other platforms to create content and services that move hearts and minds
around the world, across generations, and in ways that align with changes in people’s lifestyles and society as a whole.
: Broadcasting revenue: Non-broadcasting revenue: Operating income

Merger of Paravi and U-NEXT

TBS joins TVerYARUKI Switch Group Holdings
becomes a consolidated subsidiary

Paravi launches

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

ence*

Experi

Radio

TV

CS

Broa

TBS has broadcast hit shows that went viral on social media, such as“NAOKI HANZAWA,” which won Japan’s “buzzword of the year”
for the phrase “I'll pay them back double,” and “The Full-Time Wife
Escapist,” which popularized the “Love Dance.” Meanwhile, TBS’s
focus on developing programming for family audiences has helped
make variety shows like “The World Unknown to Matsuko” and“Secrets of the Pros Revealed” established fixtures on the TV
schedule.

“NAOKI HANZAWA”

FilmLifestyleWeb
streaming

The stage series “Seven Souls in the Skull Castle” at IHI Stage
Around Tokyo, Japan’s only theater with a 360-degree rotating
seating area, has amassed an impressive long run. TBS has also
generated sizable profits outside the realm of video content,
including the StylingLife Group’s hit “Saborino” product—atime-saving skincare mask.

“Seven Souls in the Skull Castle”(stage series)“Seven Souls in the Skull Castle”©2017 HANA/TBS-Village-Gekidan☆Shinkansen,
Photo by Aki Tanaka

Saborino

Radio

TV

CS

2021-2030
Stage
GlobalReal
production market estate
expansionBS

In addition to enhancing broadcasting value, TBS also works todevelop programming geared toward maximizing LTV. Eleven of
our twelve prime time (7 p.m.–11 p.m.) dramas in FY2022 wereoriginal, non-adapted works, which tend to be easier to deploy
across multiple platforms. That versatility made for a stronger
presence and more expansion possibilities on a mix of platforms.
We will continue to create content capable of forming foundations
for our IP portfolio.

“VIVANT”

TBS Group
VISION 2030

*Experience = Live entertainment and lifestyle2023

2009-2020 Beyond Tokyo, Beyond BroadcastingStage
GlobalReal
production market estate
expansionBS

40%

dcasting

COVID-19 pandemic

Sustainable Growth and Exploration

s

rsea

Ove

E
EDG

2011

2030
ION
VIS

2010

l
ita
Dig

TBS opens new Akasaka ACT Theater

Medium-Term
Management Plan 2023
2009

550 billion yen
38.5 billion yen
60%

TBS changes corporate name to TBS Holdings

IHI Stage Around Tokyo opens

TBS becomes a certified
broadcasting holding company

Revenue:
Operating income:“Takeshi’s Castle”(streaming)

Film

Lifestyle

Web Intellectual Manga Akasaka
streaming training
Entertainment
and education
City“Takeshi’s Castle,” “Let’s Get Divorced,” and a host of other content
is currently streaming across the globe. The stage play “Harry Potter
and the Cursed Child,” meanwhile, has not only wowed audienceswith its incredible production but also created magical moments
outside, transforming the area around Akasaka Sacas into a scenestraight out of the Harry Potter world. TBS will continue to growthrough proactive investments in the EDGE growth strategy, onethat aims to maximize content value.

“TOKYO MER: Mobile Emergency Room—The Movie”©2023 TOKYO MER—The Movie Production Committee

53

Maximizing Content LTV

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Working to Maximize Content LTV

Creating Mechanisms for Matching Users with Content
We believe that one of the keys to delivering wonderful“moments”—the goal at the core of our brand promise—isgiving users the content they want when they want it.

Creating wonderful “moments”
by giving users the content they want when they want it

Two IDs for Content LTV
To bring that goal to fruition, we began working on creating
platforms for two IDs vital to optimizing user-content matching.
We also decided to use two LTVs as our key indicators inworking to turn the IDs into revenue. LTV, which stands for“lifetime value,” generally refers to the value (revenue) that acustomer generates over the course of their relationship witha company. At TBS, however, we also apply the LTV concept inassessing content that produces value for prolonged periods oftime—long-loved content, in other words.

TBS Group ID: A common ID for users

A common ID that users utilize

IDs for the individual content

Two ID infrastructures

across different touchpoints

at the basis of shows, products, and services

Touchpoints
Broadcasting

TBS Group ID

This common ID service lets users engage with content across awide range of touchpoints, from broadcasting and streaming tostage productions and stores.

A diverse mixof ways toenjoy content

Streaming

Multi-platform
content
deployment

Stageproductions

Content ID

StoresContent ID: Linking individual multi-platform
content

As we work toward multi-platform content deployment, →p.57
managing the IDs of the content at the core of our shows, products, and services on an individual basis enables optimal user-content matching across touchpoints.

Maximizing user LTV

Two key indicators

Maximizing content LTV

Maximizing profits54

Maximizing Content LTV

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

TBS Group ID

Delivering Optimal Content to Bring Every User Wonderful “Moments”
We offer content across a wide variety of touchpoints,
including broadcasting, streaming, stores, and stage productions. The “TBS Group ID,” a common ID that covers
every touchpoint, enhances convenience for the user. That
one ID not only gives users easier access to content via
full range of the TBS Group’s various touchpoints but also
makes it easier for them to discover content that meets
their individual needs.

Getting ready to debut the new service
The TBS Group ID Business Bureau and Personal Information
Management Bureau, both of which formed last fiscal year, areleading the way in preparing the service for launch by the endof FY2023.

Future prospects that could propel growth in theadvertising businessWe believe that making the TBS Group ID a reality will not only
enhance the value we provide through B-to-C services but also
improve the value we offer in our B-to-B advertising business efforts. The first area where we anticipate applying the TBS GroupID is in digital advertising. A key step in that initiative will be collaborating with our new ad technology company, VOXX, which
formed in August 2022.
As the TBS Group is also home to brick-and-mortar retail operations and e-commerce services, we also have our sights set
on breaking into retail media advertising: services that online
and offline retailers provide on their own platforms. Retail media advertising has a number of compelling features. In addition
to helping companies effectively showcase their products when

Value provided through B-to-C services
Core organizations driving the TBS Group ID
Revenue generation

Risk management

TBS Group ID Business
BureauPersonal Information
Management Bureau

Developing and preparing
platforms for collecting andutilizing IDs

Evaluating risks of utilizing
IDs and providing support fordevelopment and operations

consumers are making purchasing decisions, it also enables
high-precision targeting grounded in the detailed consumer
data—purchasing history, viewing history, and other information—that retailers collect.
By combining the mass-media advertising the TBS Group hasoffered in the past with stronger digital advertising and retail
media advertising, we will be able to give advertisers new waysof reaching consumers at every stage of the purchase funnel.
That will help us not only boost the value of individual media
but also the value of media across the entire TBS Group, thereby
sharpening the Group’s competitive edge.

• Lets users engage with content across all
touchpoints with just one ID• Makes it easier for users to find content
that meets their needs

TBS Group ID
Cross-touchpoint common ID service
Broadcasting

Streaming

Value provided through B-to-B services• Goes beyond the scope of mass media tooffer a diversity of media functionality,
including digital and retail media• Lets advertisers engage with consumers
across every stage of the purchasing
funnelStage
productions

Enhancing convenience for users

StoresBoosting the value of
TBS Group-wide advertising media

55

Maximizing Content LTV

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Content ID

Using Content-Specific ID Management to Facilitate Multi-Platform Deployment
Leveraging our broad touchpoint coverage, we are taking
more and more opportunities to put individual content
on multiple platforms. For example, our array of options
for multi-platform content deployment—from adapting
dramas into films and holding events for variety shows tocreating marketable merchandise for anime titles—gives
us the ability to deliver the content we create to a broad
range of users.

Content ID
Cross-touchpoint content-management system

Broadcasting

Current projects
To maximize the earnings of our multi-platform content deployment, we knew that we needed structures for managing content
not by touchpoint, such as shows or products and services, but
on a content-specific basis. We thus launched the “Content ID
Promotion Project” in January 2023.

(1) Benefits for users

Streaming

Users(2) Benefits for TBS

TBS GroupStage
productions

StoresFuture prospects that could enrich content
investments
With Content IDs, we will be able to do more than just provide optimal content to users across different touchpoints. The
new approach, integrating the data that we gather via ourmulti-platform content-deployment efforts, will also give us fuller, more comprehensive visualizations of the value that content
generates. On top of that, we believe that the data will help us
evaluate content from a more complete perspective and thus
make faster, better decisions on content investments.

(1) Benefits for users(2) Benefits for TBS

When content a user likes makes its way to new
platforms, the user gets the relevant information
across touchpoints

The process of integrating data from different
touchpoints and obtaining comprehensive visualizations of the value content generates over thelong term gives TBS valuable resources for making
future investment decisions

Ex.: Information on merchandise and events for ashow a user likes

56

Maximizing Content LTV

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Drama: “I Will Be Your Bloom”

Deploying Content on a Compelling Mix of Platforms
TBS does more than broadcast the rich mix of content (dramas, variety shows, anime, and more) it prides itself on. By
taking advantage of the Group’s wide-ranging platforms,
TBS rolls that content out on multiple fronts. “I Will Be
Your Bloom,” a drama that aired on TBS in 2022, is one
example of how TBS is working to maximize LTV.
Debuting in October 2022, “I Will Be Your Bloom” featured a boy
band called 8LOOM that made the leap from a fictional drama
to real life—and catapulted the drama into a crossover successwith a reach the likes of TBS had never seen. The integration wascomprehensive: the group did live shows and events in alignment
with the progress of the story, creating a link that allowed thedrama and the artists, 8LOOM, to publicize each other. That synergy made a significant impact in generating new fans, increasing attendance figures, and promoting merchandise sales.
The show holds the all-time TBS record for highest merchandise revenue—and the totals are still rising.

Multi-platform deployment of “I Will Be Your Bloom” (drama)
Web streaming

Recorded second-most new users for individual content
in Paravi history
The drama served as a jump-off point for a variety of other content, including
unreleased footage from “365 Days to I Will Be Your Bloom” (which followed
the formation of the group over the course of
one year, starting with auditions) and “8LOOM:The I Will Be Your Bloom After-party,” a showcase of behind-the-scenes stories.
CS broadcasting

Generated over 3,000 new subscriptions
TBS broadcast a lineup of 8LOOM-focused programming and a complete edition of the group’s live tour on TBS Channel 1 (CS), an effort that brought in
3,000 new subscriptions.
Blu-ray & DVD

Sales topped 60,000 sets
Releases of drama series for home viewing usually simply package the episodes of the series together. With “I Will Be Your Bloom,” however, TBS rolled
out two packages: one for the drama itself, which came out in March 2023
and sold 17,000 sets, and one for the live
tour, which hit shelves in May and sold
50,000 copies by the end of the month.
Music streaming

Released five new original songs
Totaled over 200 million streams
8LOOM’s seven members came from different talent agencies. To ease challenges on the logistical side, TBS designed the contracts so that Nichion (a TBS
Group company) would hold the rights to and manage all the group's songs
while the members were part of 8LOOM. That enabled the TBS Group to consolidate sales in one place.

Overseas streaming

Launched worldwide streaming on Netflix in February 2023
Episodes hit Netflix for streaming in Japan immediately after airing on TV. The
show then made its international streaming debut in February 2023.
Merchandise and books

TBS Store at JR Tokyo Station bested the broadcasting retailmarket in FY2022 revenue
TBS released over 120 pieces of merchandise that gave boy-band fans a full
palette of choices to meet their needs. Buoyed by the success of “I Will Be Your
Bloom,” the TBS Store at JR Tokyo Station posted the highest revenue mark ofany broadcasting retail location—from other commercial broadcasters to public broadcaster NHK—in FY2022. Other sales drivers included collaborations
with popular brands, such as loungewear that characters wore on the show,
and photo exhibitions across the country, which boosted the revenue volumeof photo collections.
Tours and events

Immediately sold out all tickets for 8 performances in 3 cities
One major contributor to merchandise revenue was a lineup of live, in-person events that fueled substantial enthusiasm among fans. A total of 8 live
performances, funded completely by TBS, sold out the day they went on sale.
Rounding out the event program were gatherings like the “I Will Be Your
Bloom Exhibition,” which showcased reproductions of the main sets from theseries along with characters’ clothing and props; fanmeets with performances
and talk-show sessions featuring the
8LOOM members; and a food-focused
event at Akasaka Brunch Park, where
guests got to taste dishes that made appearances on the show and menu items
themed around their favorite members.

October 2022– (terrestrial broadcasting)57

Maximizing Content LTV

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Producer, “I Will Be Your Bloom” (drama)

Only on TBS: Breaking New Ground in the Drama Landscape“I Will Be Your Bloom” spawned 8LOOM, a fictional-turnedreal boy band, and the drama’s content business continues
to set new revenue and profit records for TBS. We talked
with the producer of the series to learn more about how it
all came about.

Where did you get the idea to take a boy band from a
drama and actually make them a unit in real life?
With the company focusing on creating original IP and “oshikatsu” (enthusiastically supporting singers, entertainers, and others)
now a part of everyday life, we started talking about how incorporating a boy band into a drama might have a lot of pull. Then we
got to the idea of enhancing the viewing experience with a new
dimension: giving people the chance to see a live performance bya group they saw on a drama the night before, buy merchandise,and listen to actual songs. That's how the project got going. It wasan effort unlike anything TBS had done before, but that didn’tmean the company shied away from it. Since new endeavors are a
big priority at TBS right now, we had plenty of support.

What do you think enabled “I Will Be Your Bloom” toearn its place among TBS’s highest-earning individual
content to date?
One thing was the fact that we committed to generating profit but made sure that fan satisfaction was our top priority—and
8LOOM was fully on board. You could tell that the members wanted to be as involved as they could in events, TikTok videos, andother promotional activities, and I think that showed the fans how
into it they were. The second thing was that we kept all the profits
in house. Nichion, a Group company, managed all the rights tothe music. TBS brought in all the proceeds from merchandise too,
as TBS stores and the StylingLife Group handled sales. Having thecoverage of the entire TBS Group, with its variety of platforms andarray of different Group companies, was crucial.

Did you anticipate seeing these levels of earnings fromthe start?

Lai King Yi
Programming Section, Programming Department, TV Programming Division,Multi-Platform Media Division, TBS TELEVISION, INC.

profileJoined TBS in 2015. Born in Hong Kong and raised in Beijing. Showing an interest in Japanese content during her elementary school years, taught herself
Japanese and eventually made her way to the country. Made her debut as a
producer with “A Warmed Up Love” (2020). Won the Best Drama Award at
the 108th The Television Drama Academy Awards (2021) for “Dragon Sakura
S2” (2021).

I knew that 8LOOM had the potential to be big—but with the
COVID-19 pandemic, I also knew it would be somewhat of a gamble. We started streaming behind-the-scenes documentary footage
about six months before the actual drama went on air. The group’s
first single came out around a month ahead of the premiere too.
But we didn't see the kind of response we were expecting. Thingschanged, though, when the group made an appearance on “CDTV
LIVE! LIVE!” (a terrestrial broadcast) a week before the premiere.
With the promotional impact that appearance had, all the seeds
we’d been carefully laying over the previous several months finally
started to bear fruit. To me, that's the real advantage of having
an entire TV station get behind a project like ours: the power tospread information.

Auditions
October
2020

Planning

September January
2021
2022

Filming

Drama premiere
Domestic streaming On-air finale
on Netflix

Overseas streaming on Netflix

June

October November December

2023

Drama broadcasting/Streaming
streaming

Drama production

Streaming of documentary content

Streaming of variety content

8LOOM production/music shows/events
KCON boothBlu-ray/DVD

Release of 1st single/streaming of 5 songs
and music videos

Live appearance
on CDTV

The “I Will Be Your Bloom”
production schedule:
An example of multi-platform
deployment

Overseasstreaming

Photo book/merchandise
sales
National tour
Fanmeets58

Maximizing Content LTV

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Striving to Provide Wonderful “Moments” to the World

Global Market Expansion at TBS: An Ever-Evolving Effort over More than 60 Years
For over six decades, TBS has worked to expand into theglobal business market on multiple fronts ranging fromsyndication and format sales (selling program concepts) tothe sale of drama and film remakes. And new endeavors,
fueled by in-house IP and the production prowess TBS has
honed over the years, are always in progress.

Drama series streaming around the world one
after another
TBS distributes new drama series and a host of other content
on global platforms. Although overseas distribution of drama
series has primarily taken place in the Asia region, the reach thattoday’s streaming services boast presents an extraordinary opportunity for TBS to deliver its content to audiences around theworld.
In addition to making new dramas accessible to more viewers on these platforms, TBS is also streaming older series like
“Ikebukuro West Gate Park” and “Tiger and Dragon” both domestically and internationally. Efforts to expand overseas used
to operate on a syndication basis, a setup that left some content
out of the distribution picture. As the streaming market now
continues to grow, however, shows that aired in Japan as far
back as 20 years ago are finally finding their way to audiences
abroad. These types of throwback titles generated considerable
buzz when they hit domestic streaming prior to their global debuts, testifying to the enduring appeal of TBS content.

Ken’s Good-Time TV”; “Takeshi’s Castle,” which currently has localized versions in production in Saudi Arabia and several othercountries; and “SASUKE”.
“SASUKE” has made it to the airwaves in over 160 countries
and spawned the production of local versions in over 25 countries.
Localized renditions of “Funny Home Video Corner,” too, havebeen seen in over 100 countries around the world. The American
version of the show has aired a total of over 750 episodes over 33
seasons since debuting in 1989, making it one of the world’s longest-running shows and cementing its place alongside “Takeshi’sCastle” as a global success story in format sales.
“SASUKE,” meanwhile, has expanded into a wide-ranging,
IP-driven “derivative sales” franchise with a bevy of merchandising, tie-ins, and even theme parks in the UK and US.
TBS is also active in the development of new formats. One
example is its collaboration with the high-profile producer behind the American version of “The Masked Singer” on “Love byA.I.”—an AI-driven dating reality show that premiered in October 2022 at MIPCOM CANNES, the world's largest entertainment
content market.

Accelerating global market expansion throughin-house IP
With teams of some of the best and brightest creative minds
around, TBS is also accelerating the development of original IP
with overseas over-the-top media providers and making more
and more content available for streaming worldwide.
That initiative brought about the recent revival of “Takeshi’sCastle,” which is now an Amazon Original streaming brand-new
episodes on Amazon Prime Video around the world since April
21, 2023. Another example is “Let’s Get Divorced.” The drama,
produced by Group company TBS Sparkle and streaming acrossthe globe since June 22, 2023, is TBS’s first Netflix original series.
THE SEVEN, Inc., a new company that forged a strategic partnership with Netflix in November 2022, has created plans andproposals for other overseas over-the-top providers—several ofwhich are to be green-lit this fiscal year. TBS is extending its global reach, and we hope you stay tuned for more.

Pioneering format sales
TBS’s track record in format sales includes several high-profile
titles, such as the “Funny Home Video Corner” from “Kato and“American Ninja Warrior”© NBCUniversal Media, LLC“Takeshi’s Castle”(Amazon Original)“Let’s Get Divorced”(Netflix series)59

C o n t e n t In n ov a t ion & Technol ogy

Intellectual Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

Original IP = Intellectual Capital That Creates Wonderful “Moments”

Maximizing LTV by Leveraging a Trove of IPs for Multiple Purposes
Key issues for the TBS Group (as of May 2022)
Shows (TV/radio/streaming)

From Materiality 01•R ecruiting and nurturing future original IP creators• F ostering workplace environments and systems that facilitate
taking on challenge• F inding human capital and improving structures for global
expansion• Improving the management and use of content to enhance
lifetime value

The intellectual capital (i.e., IP) of the TBS Group comprises an
expansive collection of media content that the company has
developed and accumulated since its establishment. In recent
years, we have particularly been focused on producing originalIPs and content produced in-house that are not adaptations ofoutside works. We create and provide a wide range of content
that is not limited to TV shows but also includes movies, eventsand manga publications. In addition to the content itself, ourdefinition IP also extends to TV show formats, logos and original
characters as well as our human resources, from which we generate revenue.
Internal efforts are also underway to fully utilize TBS’s IPs
across a diverse range of platforms. We established a company-wide initiative called the Multi-Purpose Content Strategy
Project →p.65 in July 2021, and various departments have since
been working together to launch numerous projects.
Furthermore, all of TBS’s group companies are working as awhole to expand the IP business and maximize content LTV (customer lifetime value). For example, TBS Sparkle and Manga Box
create original IPs. Nichion produces original music and also manages music copyrights. TBS Glowdia re-uses IPs and operates an
expansive licensing business. The StylingLife Group as a whole isinvolved in the IP business, with a focus on the sale of goods.

MoviesEventsThe Global
Environment

Management
Structure

Performance andCorporate Data

01
04
Creating globally
beloved originalcontent

MangaDelivering wonderful“moments” to all the
lives on earth

People (anchors/artists)

The diverse
lineup of IPs
held by the TBS
GroupShow formats

Show characters

Show logos/
collaborative merchandise

61

Message from the
PresidentIntellectual Capital

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

IP Business Projects: Recent Achievements

From Content Holder to IP Holder!
In the past, TV stations relied on the short-term business model of generating most of their profits by airing advertisements
during TV broadcasts. However, going forward, TBS will actively
engage in a medium-long-term IP business model that generates profits by expanding our content beyond TV broadcasts
and having it be viewed by a more diverse audience over longer
periods. This page features the achievements of our IP businesses that have generated significant profits in recent years.

Online streaming of TV shows
In addition to providing video-on-demand (VOD) streaming formissed TV shows, TBS began to simulcast prime time shows online in April 2022. Furthermore, viewers can watch a wide-ranging
lineup of shows, from the latest episodes to past masterworks, using an online paid service. This allows us to deliver TBS content toeven more people without the restrictions of time, place and device that come with TV broadcasting. As of March 2023, TBS offers
around 1,420 titles and 11,130 episodes (paid and free combined)
for streaming at all times. Our streaming advertisement revenue
for FY2022 reached around 5.7 billion yen.
VOD streaming
performance (FY2022)

3 most-watched
TBS TV drama
series3 most-watched

TBS entertainmentshows*Monthly average: 55.85 million views*Views in December reached 88.59 million,
the highest ever for any TV station❶“Why Didn’t I Tell You a Million Times?” 24.39 million views❷“The Black Swindler” (new)23.97 million views❶“Any Theory Goes”

53.59 million views❸“The World Unknown to Matsuko”

17.68 million views❸“Hold My Hand at Twilight”❷“LOVE it!”22.44 million views

23.82 million views

Sales of original character merchandise

Online sales of products featured on TV shows

The TBS store sells merchandise featuring Lappy, the mascot
character of “LOVE it!”, a show that revolutionized morning TV.
This past spring, we opened a Lappy Market in TBS’s flagshipstore, THE MARKET, for a limited period to celebrate the show’s
second anniversary. The market offered not only Lappy goods
but also collaborative merchandise featuring the show’s cast.
Total revenue from the show’s merchandise have exceeded 220
million yen.

The TBS online store, TBS Shopping, launched an exclusive pagein April 2022 where users can order delicious foods from establishments that were featured on Sunday’s popular TV show
“Bananaman’s Gotcha Gourmet!” Revenue from the site has exceeded 100 million yen.

A live event hosted by a radio show
Sales of licensed products in collaboration with TV
shows
Developing products in collaboration with other companies
allows TBS to publicize its TV shows while also earning profits
from licensing fees. For example, the TV show “Timeless Shops& Restaurants” documented the cast getting directly involved indeveloping a business’s product. It was then sold in the company’s store and became a great success. Furthermore, the cast of“Bouken Shounen” (“I Am Adventure Boy”) worked on a largescale collaboration with
Yamazaki Baking involving the company’s popular
product, Lunch Pack, whichdrew a lot of attention.

*“Any Theory Goes” won the TVer Award for Best Entertainment Program for two years running in FY2021 and FY2022*“LOVE it!” won the Special Award of TVer Award 2022

“Tamamusubi” is a TBS radio show that began airing in April
2012. It celebrated its 10th anniversary in April 2022 and held alive event with an audience titled “Tamamusubi in Budokan.”Over 20,000 people took part in the event, either in-person at
the Nippon Budokan or as online participants. The total revenue
from goods and DVDs reached around 170 million yen.

62

Intellectual Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

IP Business Projects: New IP Initiatives

This, That, These, Those – All IPs
Creating new IPs with news content
As a TV broadcast station committed to our social mission, TBS
produces an enormous amount of news content through ourdaily work in journalism. In recent years, we have been particularly focused on creating IPs based on such news content,
in addition to drama series, anime and entertainment shows.
◆ TBS DOCS
News programs do not always air the entirety of the extensive content gathered throughinterviews and investigations. Sometimes,
extensions of the news story, background information, as well as the passionate work of
our journalists and directors get buried. The
TBS Documentary Film Festival was launched
as a means to deliver various news as documentary films tobe viewed in greater depth with more time. Furthermore, weestablished TBS DOCS as a new brand covering the entire collection of TBS documentary films. We release many films fromthe trove of news content and create social impacts with the
TBS Documentary Film Festival. News stories that receive recognition are further investigated, documented and made intofull-length theatrical films shown nationwide, which lead toenhancing our branding efforts and creating revenue. Goingforward, we will also
develop IPs and release
information that target
the global audience.

People are also valuable IPs of TBS
In addition to the previously mentioned boy band group
8LOOM from “I Will Be Your Bloom,” TBS is engaged in various
other initiatives that view and actively leverage people as “human IPs” to generate profits.
◆ THE IDOL BAND : BOY’S BATTLE was launched in June 2022
as a joint Japanese-Korean project to form a boy band. The
project was undertaken in partnership with FNC Entertainment, a leading band management company in South Korea,
and SBS, a South Korean TV broadcast station. Having participated in the project from the audition to the debut of theidol band, TBS is able to leverage the band as a human IP afterits debut and will receive a distribution of the profits it generates over the next five years. Fifty-four entrants passed thepreliminary auditions held in Japan and Korea, who went on
to clear numerous missions overthe next half a year or so. Then,in the final round held on March
4, a five-member Japanese-Korean band debuted globally as HiFi Un!corn. Going forward, theband plans to release
songs and perform atlive concerts not only inJapan and Korea but alsoworldwide.

Leveraging IPs in intellectual training and education◆ Next-generation theme part Little Planet
TBS has been supporting Little Planet to expand its business in Japan and overseas since investing in the company in 2018. We arealso working together to expand the intellectual training business. TBS was also involved in developing the games featured in
the TV show “Oto Attraction” (“Sound Games”) that aired until
February 2022. The project’s initiatives allowed viewers and visitors to enjoy the IPs both in the TV show and the theme park.
In addition, we also provide new experiences that merge thereal and digital worlds, such as with a collaborative project thatallows visitors to experience the world of the movie “TOKYO
MER.”◆ Strategic management of TBS anchors
TBS has begun to manage its anchors more strategically than
before, actively offering them opportunities to take on projects from not only inside but also outside the company. In
June 2022, for example, TBS anchor Noriyuki Hasumi was thepresenter of the Childcare Leave Acquisition Support Summit
organized by the Tokyo Metropolitan Government. This work led to Hasumi being selected
as the 2022 IKUMEN OF THE YEAR (Ikumen refers to men who take part in childcare).

63

Message from the
PresidentIntellectual Capital

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

IP Business Projects

A Massive Archive and a Fanbase That Grows Larger over TimeShow formats that slowly but steadily capture fans
and are loved for many years

TBS’s archive is in itself our competitive superiority
When TV shows look back on the famous stars and shows of the Showa Era (1926 – 1989), those created by TBS are always featured as unforgettable works. Among them, for example, are “Hachiji Da Yo! Zen'in Shugo” (“It’s Eight O’Clock! Everyone Gather”), “The Best Ten” (a live

Another one of TBS’s strengths is our ability to start with small

music TV show), and countless TV drama masterpieces.

years.

One of the unique characteristics of TBS is that a large majority of the

A good example is “SAKABA: Bar Hopping Report by Rui Yoshida,” a show

TV shows created over the course of its history were produced in-house.
The company employs producers and directors who are able toon BS-TBS that features a middle-agedman, whose trademark look is a flatdraw out, enhance and bring together the gifted talents of the castcap, drinking at different establishments. It began in 2003 as a small segment of a show that was airing at theand staff. This practice has been passed down over the years, allowing
TBS to continuously produce a multitude of content that have adorned
the ages. In-house production is more expensive and demanding thanoutsourcing, but we are able to fully utilize the archive precisely because the shows were created by our employees. Furthermore, in recent years, we are focused on producing TV drama series that haveoriginal stories written from scratch with a scriptwriter rather thanadapting existing titles.

Number of original TV drama series
aired during the 12 regular prime
time slots available in a year thatare not based on an existing title

1
FY201911
FY2022

projects and develop them into popular shows over many

Utilizing the archive has the potential to produce many forms ofrevenue, such as from advertisements when airing reruns on TV, CS
broadcasting contracts, DVD/Blu-ray sales, and streaming. While YouTube could previously only be used for promotions, videos can now
be monetized as well. On our YouTube channel Amazing Animals/
WAKUWAKU, created in September 2020, we upload various videos ofrare animal clips that were previously aired on TV and have now been
re-edited, allowing us to reach viewers around the world. The channel
has 488,000 subscribers and the videos have been viewed a total ofover 220 million times (as of August 1).

time. After steadily growing in popularity, it became its own 30-minuteshow in 2008.
Social media was flourishing in theworld at the time.
Nothing was greater than our compatibility with X (then Twitter),a platform that creates a strong connection with hardcore fans.
Hashtags related to “SAKABA” appear on the trending list every
week.
The show has also increasingly been used for multiple purposessince the 2010s, such as for a collaborative TV commercial with ROHTO
Pharmaceutical and a live talk show event to celebrate its 10th anniversary. In November 2022, it even got its own official fan club website
after almost 20 years since first being aired.
The spirit that we have cultivated at TBS of “devoting our hearts
and souls to meticulously develop each and every piece of content” iswhat drives us to continuously generate profits no matter the age orcircumstance.

64Intellectual Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

IP Business: Future Outlook

To Promote Even More Active Use of IPs
Multi-Purpose Content Strategy Project

Manga by a TV drama series producer

We will create and deliver original games!

The Multi-Purpose Content Strategy Project was established in

TBS worked with its group company Manga Box to create a

As TBS launches a full-scale entry into the gaming industry, Kenji

July 2021 as a company-wide, cross-sectional organization thataims to promote the active use of TBS’s IPs.

manga titled “Hide from the Rain” as an original IP. The manga
was turned into a live-action series and aired from March 28,

Hiruta was appointed as a Specially Appointed Executive Officer
at TBS Television on April 1, 2023. An expert in the gaming2023.

industry, Hiruta has experience in establishing new game

Mottainai (what a waste)!
Let’s leverage the treasure trove we have at TBS!

Two-way perk with a manga and drama series!

Creating and broadcasting TV shows has been TBS’s main form of busi-

Existing manga are often adapted into live-action drama series, but toness since its establishment. Therefore, our knowledge in developing
and utilizing IPs is still lacking. We were sometimes told, “TBS has

do so, we must first receive permission from the publisher, pay royalty
and furthermore work within various limits regarding the use of the IP.

such a rich trove of IPs. Why aren’t you using them? Mottainai (whata waste)!”One cannot expect to produce a significant profit by only creating
IPs or conveying the IPs of others. Our strength at TBS is that we haveplenty of creativity to create IPs and we are able to run a streamlined IP
business using a diverse range of platforms.
We will promote the utilization of IPs to expand our businessbeyond TV broadcasting by actively developing and re-using IPs forvarious different purposes while maintaining TV broadcasting as ourcentral pillar.
The Multi-Purpose Content Strategy Project spearheaded the collaboration between the drama series “I Will Be Your Bloom” and leading fashion brand MASH Style Lab.

As such, we had a drama series producer plan and propose an original
manga. He worked with TBS’s group company Manga Box to create themanga, which was then adapted into a live-action series. This produced
a two-way perk, with fans of the manga watching the TV drama series
and viewers of the drama series picking up the manga.

businesses at Yahoo and managing the expansion of an overseas
business at Tecmo Koei Canada.

We will leverage games to develop
original IPs and maximize Content
LTV (customer lifetime value) to fulfill
the Vision 2030 EDGE Strategy!
A teaser website for TBS Games opened in July. Under the slogan of“Bringing You the Best Gaming Experience,” we will leverage the TBS
Group’s ultimate weapon, the power of content creation. We will deliver the most impressive gaming experiences through consumer, mobile, PC, arcade, card, board games, and other gaming types to best suit
our customers and turn our original IPs into household names aroundthe world.

65

Manufactured Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Content Innovation& Technology

Value Creation Story

Content Creation Bases

01
04

beloved original
TBS Facilities and Infrastructure to Create and Deliver

Creating globallyStudio/infrastructure
Delivering wonderful

From Materiality 01 and 03

The manufactured capital of TBS is classified into studio/infrastructure, facility, proprietary technology, and organizational
structure. These are the driving forces behind TBS’s ability to create and deliver content to its audiences.
The TBS Broadcast Center located in Akasaka, Tokyo, houses recording studios and editing equipment to create content,
broadcasting vans to deliver video and sound, and a network
control center/master control room to deliver content on air. In
addition, live cameras permanently installed across the country
to relay information on the state of each region in the case ofnatural disasters are also classified as TBS’s studio/infrastructure
capital.
TBS holds a diverse range of manufactured capital that is
not only limited to video equipment but also extends to the TBS
Akasaka ACT Theater, used for theatrical shows and live performances, as well as the Midoriyama Studio, an expansive filming
studio exclusively for shooting TV drama series (to create).
Furthermore, TBS is actively engaged in researching anddeveloping a broad range of technologies and is working to expand proprietary technologies and businesses beyond the scopeof TV broadcasting. Taking on these challenges is made possible
by TBS’s organizational structure.

Akasaka
StudioMidoriyama
StudioSub control
room

TBS
BELL

Delivering wonderfulStrengthening“moments”
governanceas a to everyone
we workwithresponsible
companyEntertainment

The
BrunchPark

Manufactured
capitalCity

Tech
Design X

Organizational structure
LMV

StylingLife
GROUP

XR
TBS
Qs
Media
BranchInnovating
work throughFulfillingourthe development
and associal mission
utilizationof technology
a media
group

Akasaka

Proprietary technology

STORM

Performance andCorporate Data

01 03
02
02
05
05
04 06

BLITZ
StudioEco-friendlyhydrogenbroadcastingvanManagement
Structure

Delivering
wonderful Facility
Delivering
wonderful
The “moments”
to all the“moments”
to everyone
Hexagonlives
on earth
we workwith“moments” to all the
lives on earth•D eveloping and leveraging proprietary technologies toimprove content quality•D eveloping technologies to optimize operations and save labor(cost reduction)• F ostering workplace environments and systems that facilitate
taking on challenge• F inding human capital and improving structures for global
expansion• Improving the management and use of content to enhance
lifetime value

The Global
Environment

Creating
Fulfilling
our globally
belovedas
originalsocial mission
content
a media
group

content

Key issues for the TBS Group (as of May 2022)

Human Capital and
Human Rights

THE
SEVEN

MojikoAImonitoring

TBS
ACT

TBS
GLOWDIA66

Manufactured Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

TBS Studios

Owning Vast Real Estate Properties: Major Bases to Create a Rich Lineup of Content
Midoriyama Studio■ The Midoriyama Studio is one of Japan’s largest TV Studios
The Midoriyama Studio is located on an expansive property ofaround 264,500 m2 in Midoriyama, Aoba-ku, Yokohama City.
One of the largest TV studios in Japan, it has indoor filming
spaces to create various video content and outdoor facilities
that can be adapted for use in many different situations. While
the Midoriyama Studio is used to produce various types of video
content, such as TV drama series andentertainment shows, TBS is not the
only user. For example, NHK also uses
the facility to film its annual yearlong drama series, the Taiga Drama.
■U tilizing the vast open space
TBS fully utilizes the expansive open space of the Midoriyama
Studio for various content creation projects. For example, thefacility has a demonstration set from the popular show “Sasuke:
Ninja Warrior,” which is held in over 160 countries and regions
worldwide. It also has an outdoor set from “Takeshi's Castle,”
an action entertainment show with viewer participation thatwas revived on Amazon Prime Video. Furthermore, the track

BLITZ Studiofrom the famous “Akasaka 5-Chome Mini Marathon” segmentof “All-Star Thanksgiving Festival” was also reproduced in Midoriyama in 2020.
 6 Studio■M
The M6 Studio is scheduled to complete construction in 2023,
which will make it one of the largest private filming studios inJapan (around 1,000 m2). It will be operated by the new company THE SEVEN as a high-end
content production site capableof not only filming TV drama series but also flexibly responding toover-the-top (OTT) media service
companies overseas.
M6 Studio (finalized exterior concept)■M 4 Studio
The M4 Studio, which is currently operating as one of TBS’s production bases for filming drama series, will be updated this year.
We plan to permanently install a cinema camera in the facility,
which will be a first for TBS. This will enable production teams tocreate even more cinematic videos.
 ptimizing the editing process with a high-speed digital■O
leased line
A high-speed digital leased line was set up and began operating
between the Midoriyama Studio and Akasaka TBS in June 2022,
establishing a network to send and receive data. This optimizes
the editing process as the video file can be sent to Akasaka assoon as on-set filming is complete.

■ The TBS Akasaka BLITZ Studio opened in October 2022
The BLITZ Studio has been operating as our 11th studio in
Akasaka since 2022, specializing in the production and recordingof entertainment shows. Although the facility’s main purpose
is to record, it is connected to the TBS Broadcast Center via an
optical network, allowing it to coordinate with the station’s sub
control room to deliver live broadcasts
as well.

■ Event areas with a focus on entertainment
The BLITZ Studio has an exhibition area featuring collaborations
with popular TV shows on the first floor, and viewing stands on
the third floor where visitors can watch shows being recordedin the studios.

■ A multi-purpose facility that extends beyond terrestrial TV
shows
We plan to use the BLITZ Studio for a diverse range of purposesin the future, not only for terrestrial TV shows by TBS but also
for online streaming shows and events held for various projects
in the Akasaka Sacas Square.

67

Manufactured Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

The Challenge of Content Creation

To Create and Deliver Entertainment in Line with Global Trends
Tech Design X (Cross)■ Opened in March 2023 as a base for the TBS Tech Design Lab
Tech Design X (Cross) opened on the 9th floor of the Hexagon
in Akasaka in March 2023 as the first innovation space of the
TBS Group. We believe it will function as a place for the group
ロゴマーク（TBS 表記なし）
to engage in R&D and develop software systems that focus ontechnology and design.

■S patial effects and spatial sound equipment
The facility is permanently equipped with lighting, decorative
illumination and spatial sound equipment that can be controlled
over a network. This allows us to test various spatial effects, notjust for broadcasts but also for theatrical stages and events.

include, for example, the extended reality (XR) technologies
that were used in the Beijing 2022 Winter Olympic Games andthe World Athletics Championships Oregon 2022, as well as thevirtual production technologies used in the Sunday night drama
series “My Family.”■U tilized for a range of purposes such as for events andnew business development
In addition to researching and developing the latest technologies
as a research facility of the TBS Group, Tech Design X is also
being utilized for a wide range of initiatives to enhance TBS’s
branding. For example, it was used as an experiential venue
during an event for SDGs Day and also hosts joint events withother companies.

The Brunch Park
■ A store and restaurant based on the infotainment show
“King’s Brunch” opened in October 2022
The Brunch Park, which opened in October 2022, is a nextgeneration restaurant and store based on the infotainment
show “King’s Brunch” by TBS Television, Inc. Located one minuteaway by foot from Akasaka Station, it is gaining popularity as
a trendsetting establishment where visitors can be the first to
enjoy specially designed dishes and entertainment programs
that are uniquely “King’s Brunch.”
Going forward, we plan to hold collaborative events with
the TV show and other outside content at the Brunch Park. It
will also offer exclusive menus and goods recommended by“King’s Brunch” and TBS Television, Inc. that fit the seasonsand social trends. We hope visitors can make new discoveries
and find pleasant surprises here, where we provide experiencesthat make ordinary weekends a little more fun, just like “King’s
Brunch” itself.

]■ L arge 6 m x 3.4 m LED wall
A giant LED wall measuring 6 m wide and 3.4 m tall is used toresearch and test the most advanced video technologies. These

Capitalexpenditures(CAPEX)FY2021
resultFY2022
resultFY2023
forecast

28.9
billion yen

26.9
billion yen

21.0
billion yen

68Message from the
President

Manufactured Capital

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Proprietary Technologies Developed by TBS

Improving Content Quality and Entering New Growth Fields
Technology is the key to achieving the TBS Group VISION 2030.
At TBS, we are engaged in various initiatives, such as enhancing
content experience, optimizing operations and taking on thechallenge of entering new growth fields. To this end, we continue to develop technologies. We are currently undertaking areform that aims to (1) maintain the quality of our TV shows

while (2) constantly taking on new challenges. We are striving
to significantly reform the conventional broadcasting businessby providing consumers with opportunities to come into contact
with TBS’s content in various places, from everyday devices, suchas TVs, smartphones and computers, to an entire corner of thecity such as Akasaka Entertainment City.

Experience

Work optimization

New experiences that TBS developed and offers.

Striving to optimize work operations
to make more time for creativity.

■ L MV(Live Multi Viewing)

Streams videos of an event venue from multiple angles.
TBS BELL ロゴ■T BS BELL

A proprietary system developed by TBS to connect
many remote participants.
(Received the Best Technology Development Award
from the Motion Picture and Television Engineering
Society of Japan)■T BS Qs

A real-time viewer participation quiz system.
Viewers can easily participate by using theirsmartphones to enjoy new experiences while
watching TV or at events.

■E xtended Reality (XR) Technology

XR is a technology that synthesizes real-life videos and 3D CG using areal-time engine, making it appear as if the scene was filmed in a totallydifferent location, such as a large event venue ora futuristic city. (Received the Award of Excellenceof the Digital Content of the Year ’22/28th AMD
Annual Content Awards)■M edia Branch

Online submission of videos forbroadcasting■A I Monitoring

Automated on-air monitoring
system■M
 ojiko/Mojipa

Automated transcript andsubtitle generators

Spreading TBS’s technologies overseas
In order to extend our content to a global audience, wemust first spread our technologies overseas. As a new initiative for TBS, we began exhibiting our technologies at international exhibitions.
As part of this effort, we participated in South bySouthwest 2023 (SXSW 2023), an event to showcase leading-edge technologies and entertainment, which was heldin Austin, Texas in the USA.
SXSW attracts companies from around the world thatare brimming with innovative technologies and creativity.
TBS set up a booth where visitors could experience a VR simulation of the popular TBS show “Sasuke: Ninja Warrior” aswell as the editing process of the English version of Mojiko,a transcript generator developed by TBS Television, Inc.
Going forward, our young engineers will continue totake the initiative, communicate with people overseas anddevelop technologies that impress the world.

■S enrigan

Secure video preview system■N ews Publisher

Integrated news distribution
system■S
 TORM

High-speed file transfer
software69

Message from the
President

Manufactured Capital

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

TBS’s Organizational StructureGroup Companies Supporting TBS’s Technologies●T ranscript generator Mojiko

A leading general production company inbroadcasting technology and art creation

AWARD

TBS ACT is one of Japan’s largest general production companies, bornfrom a conglomeration of 12 companies. It works mainly on TV shows
broadcast by TBS in the three fields of technology, art and CG.

In-house development of broadcasting systems,
apps and web services
TBS GLOWDIA is in charge of a broad range of operations for smartphone
apps and web services, including their planning, graphics and UI design,development and operation. The company also develops web appsthat use VR, AR and AI, operates online store systems, works on video
streaming, and produces and operates TV show websites.

Recentachievements• Received the Leader Award of the ITreview Grid Award 2023 Spring• Acquired a patent (No. 6543755)●M ojipa• Received the Grand Prix Award in the Technology Category of the 2021 Japan
Commercial Broadcasters Association Awards• Acquired a patent (No. 7087041)●X R studios for the Beijing 2022 Winter Olympic Games and the World Athletics
Championships Oregon 2022

• Received the Grand Prix Award in the Technology Category of the 2022 Japan Commercial Broadcasters
Association Awards• Received the Award of Excellence of the Digital Content of the Year ’22/28th AMD Annual Content Awards●3
 D Illumilink: CG lighting and decorative illumination simulation system• Received the Content Technology Award of the Technology Promotion Awards from the Institute of Image
Information and Television Engineers●6 3rd Japan Record Awards• Received the Video Technology Award (Broadcast Sounds) from the Motion Picture and Television Engineering
Society of JapanTECH VISION 2030
Below is TECH VISION 2030, a roadmap that summarizes key media
technology themes based on VISION 2030.

Enhance strengths and areas of expertise

Collaborate with other businesses to cover what we lack

Create alliances with outside experts

Change the way wecreate broadcast
content

A structure to deliver content at any time
Secure content rights
Recruit and train creators• Production that can take place anywhere by leveraging thecloud and AI• Build an integrated broadcasting and streaming system• Train programmers and CG creators• Collaborate with outside partners who have HD video and audio
facilities• Develop a system to protect digital content rights• Increase mid-career hires from other industries• Train project managers• Partner with outside experts

Deliver broadcast
content to a wider
audience

Paid streaming service
Free streaming service
New kinds of digital content
Global market
Experiential business• Establish a structure to produce paid content• Stream shows based on terrestrial broadcasting• Enhance R&D and personnel training• Establish a structure to produce 4K HDR, 5.1ch drama series• Apply video production expertise to theater and music hallproductions• Multicast IPs and run targeted ads• Expand revenue sources by leveraging TBS’s ID• Accelerate content service development by recruiting more mid-career
hires• Secure streaming platforms• Expand into the field of experiential services including AR and VR• Investment strategy, M&A, collaboration

Share broadcasting facilities
Automate and incorporate AI into operations
Streamline and restructure the organization
Improve the management of TV show dataand content• Establish a new production structure• Systemize operations• Leverage the cloud and AI• Analyze viewer data
• Leverage new platforms, the web and social media• Enact archive and cyber security measures• Integrate broadcasting and telecommunications• Central casting• Share facilities with other TV stations and broadcasting
companies• Consider 4K terrestrial broadcasting

Change how thebroadcasting business
operates70

Social Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

Partnerships with People and Organizations Around the World

Building More Global Relationships to Handle
Change in the Global Market
Key issues for the TBS Group (as of May 2022)
From Materiality 01•R ecruiting and nurturing future original IP creators• F inding human capital and improving structures for global
expansion

Viewers
Listeners
Customers

From Materiality 02•E stablishing standards and systems to ensure overwhelming
trust in all content

The social capital of TBS is every person and organization aroundthe world. And in particular, it is the wide range of partners that
we have in our business model of creating content and delivering it via platforms that will enable TBS to expand its businessand grow.
The content industry as a whole faces an environment that
rapidly and continuously evolves and in which the dominant
platforms are constantly changing, in addition to the diversifying tastes and preferences of content consumers. In such an environment, judgments on what kind of content to put out andwhere need to be constantly updated. Of particular necessity
when it comes to dealing with an evolving global market is thefurther expansion of partnerships with people and organizations around the world, so in FY2022, the TBS Group continued
to work on building a range of relationships.
In addition, maintaining and developing networks that are
based on a sustainable framework and enable us to continue tofulfill our social mission as a news reporting organization is also
a key issue. To address this issue, we have taken on a range ofchallenges, such as the establishment of the news website TBS
NEWS DIG powered by JNN that started in partnership with JNN,
which is comprised of 28 TV stations around Japan.

Shareholders
Investors

Society
NaturalEnvironment

Advertisers

Business
Partners
Employees

The Global
Environment

Management
Structure

Performance andCorporate Data

01
01 02
02
05
04
04 05
Creating
globally
Creating
globally
belovedoriginal
belovedoriginal
content
content

Fulfilling
Fulfilling
our oursocialsocial
missionmissionasas
a mediaa mediagroupgroup

Delivering
wonderful
Delivering
wonderful“moments”
to all the“moments”
to all the
lives on
earth
lives
on earth

Delivering
wonderful
Delivering
wonderful“moments”
to everyone“moments”
to everyone
we work
we withwork with

TBS Business Partners
These are all of the enterprises, organizations, and individuals that work with
the TBS Group, including partners andcompanies funded by TBS, production
companies, entertainment agencies, anddrama creators and scriptwriters.
With the 28 TV station
Japan News Network (JNN)and the 34 radio station
Japan Radio Network (JRN),
we have built robust national broadcasting networks with TBS as the key station.

71

Message from the
President

Social Capital

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Building Global Partnerships

Strengthening Partnerships in Various Sectors Based on the EDGE Strategy
Content made by TBS anddelivered on partners’ platforms

Content (create)

Platform (deliver)

Created by TBS

Diverse TBS platforms

Created by TBS

Diverse TBS platforms

Created with partners

Partners’ platforms

Content made by partners anddelivered on TBS platforms

Created by TBS

Diverse TBS platforms

Created with partners

Partners’ platforms

THE SEVEN, Inc., a new global strategy company
November 2022
Strategic partnership agreement with NETFLIX

Created with partners

Partners’ platforms
Amazon Original“Takeshi’s Castle”
April 2023
Worldwide rollout

Main partnerships from FY2022
May 2022
Studio TooN established to produce vertical scrolling digitalmanga with partners including NAVER WEBTOON (South Korea)

July 2022
Capital and business alliance agreement with K-BALLET
New studio opened in Shirokane-Takanawa, Tokyo in March 2023
Target increased income through synergy between performancesand school

June 2023
Funding for YARUKI Switch Group Holdings
Becomes consolidated subsidiary
Fully-fledged expansion into intellectual training and education

Stage performance of “Harry Potter and the Cursed Child”©Maiko Miyagawa

June 2023
Partnership agreement with U-NEXT
TBS acquired 20% of U-NEXT shares upon the UI/UX integrationof Paravi and U-NEXT on July 1
Equity method adopted for the company

72

Social Capital

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

A News Website Combining the Capabilities of the 28 JNN Affiliates

More than 200 Million Page Views in the Year After Launch
200 million page views in a month, highly rated
by partners

Internet optimization and value improvement
as the JNN news network

TBS NEWS DIG Powered by JNN is an integrated news website
for the 28 JNN affiliates with TBS as the key station. The website
is based on the concept of using the digital world to “dig” further into the news and information that TV news alone cannot
fully cover. It achieved 100 million page views in just four months
after its launch in April 2022, and in June 2023, it reached its
highest ever monthly page views with more than 200 million.*With a record high of 700 million page views in a month on
external platforms such as Yahoo! News and YouTube (where
the channel has more than 1.6 million subscribers) and receiving
awards at the SmartNewsAwards and LINE Journalism Awards
among other accomplishments, the wide-reaching news network and in-depth reporting capabilities of TBS/JNN that covers
domestic and international news are also highly acclaimed bynews platforms.

TBS NEWS DIG was launched with the aim of dealing withchange in the environment that the broadcast industry is faced
with, enhancing the ability of TBS/JNN news to disseminate information and strengthening its brand appeal, and achieving
monetization as a result of this. Revenue in the digital news business has reached 150%* year-on-year, and thanks to the sharing of equipment and systems, costs for all affiliates have been
reduced while efficiency and profit have increased. By sharing
know-how, the JNN partnership has been cemented through TBS
NEWS DIG.
*For FY2022, revenue for TBS/JNN NEWS DIG, LLC that runs TBS NEWS DIG

s

oice

te v

lia
Affi

BSS ( Broadcasting System of San’in,
Tottori/Shimane Prefecture Area)
In contrast to terrestrial broadcasting, NEWS DIG has no limits
imposed by schedule slots and every article reaches every cornerof the country, so naturally, communication with TBS increases
and the JNN partnership has been strengthened. The reason for
the rapid growth of NEWS DIG is the fact that all members of
JNN have worked together on it. What this means is articles thatwould otherwise be unread if disseminated by a single station
can achieve a major reaction through partnership with JNN.
NEWS DIG provides an equal chance to all stations regardless of
their size, and the fact that our reach has expanded to all areasof Japan has led to an increase in motivation for our young reporters. It also has a significant effect on profit, and BSS revenue
from digital news in FY2022 grew by 456% year-on-year. This
stunning growth in revenue has led to an in-house awarenessof news as a new source of profit, and new challenges are being
started even in sections outside the news bureau.

TUT (Tulip Television, Toyama Prefecture Area)*Research performed with Google Analytics/total for newsdig domain, notincluding page views on external platforms

JNN news network

28

stations in Japan11

overseas branches

Monthly200

millionpage views

Inc. external platforms
700 million page views

Revenue150%(year on year)

Since NEWS DIG started, local scoops have instantly become
national news. We discovered that the issue of the Unification
Church was in the background to the assassination of Japan’s
former Prime Minister Shinzo Abe, and three days later, before
any other company, we interviewed a former member of thechurch and published an article entitled “Money Money Money,
Donations Donations, My Family Fell Apart”, and subsequently
continued our coverage over consecutive days. This reporting
formed the spur for a focus on the relationship between theworld of national politics and the Unification Church. Reporters
on the ground now take into account a nationwide audience
instead of just a local audience. Creating articles for distribution
from information that didn’t fit into a finite broadcast schedulehas resulted in a positive cycle where the reaction can be seen inreal time and coverage continued.

73

Hum a n Capi ta l & Human Rights“THE TIME,”

Human Capital & Human Rights

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Rights

This Year’s Initiatives in the Field of Human Capital

Human Capital Management Philosophy and Strategy
Human Resource Development Policy and Internal Environment Improvement Policy•R ecruiting and nurturing future original IP creators• F ostering workplace environments and systems that facilitate
taking on challenge• F inding human capital and improving structures for global
expansion

From Materiality 05•E stablishing working environments that are fair as well as
physically and mentally safe, allowing people of diverse
backgrounds to flourish• Improving education and training to help our colleagues
improve their skills

The TBS Group formulated a philosophy and strategy for humancapital management in FY2022.
We consider our employees and colleagues as capital withthe potential to create infinite value, not as existences that incur personnel expenses and other costs and that exist only to be
consumed in the working process. Thus after examining and discussing what is truly important to achieve VISION 2030, which iscentered around businesses built on appealing content that can
only be created by people, we drew up Human Resource Development Policies and Internal Environment Improvement Policies
and prepared strategies, measures and KPIs based on them.
Under our currently announced strategy, in these recent
times when the position of TV is said to be weakening in society
as a result of the growing diversification of platforms and audience tastes, we will aim to become an organization that strikes abalance between those who create and those who expand globally beloved original content, and endeavor to become a groupwhere people respect each other. We will also make it possible
for everyone to improve their skills as part of an organization
with a positive and reasonable working environment and thorough adherence to compliance issues.

TBS Group Human Rights Policy

Environment

Delivering
wonderful
Creating
globally“moments”
to all original
the
belovedlives on content
earth

Key issues for the TBS Group (as of May 2022)
From Materiality 01

01 02
01 05
02
04
04 05

Creating globally
beloved original
Human Capital and contentThe Global

StrategyManagement
Structure

Fulfilling oursocial mission asa mediagroup and
Performance
Corporate Data

Delivering
wonderful
Fulfillingour“moments”
to mission
everyoneas
socialwe workawith
media group

Delivering wonderful

Delivering wonderful

lives on earth

we work with

1 “moments”
HumantoResource
Development “moments”
Policy to everyone
all theCreate a human resource portfolio of creative staff
to develop original IP and enhance creative material
that contributes to society

As a member of society, the TBS Group once again recognizes the importance of respecting human rights andis committed to fulfilling its responsibility to respect thefundamental human rights of its executives, employees
and all other stakeholders. All suppliers are expected tocomply with this policy as well. →p.85

2Create a portfolio of business-oriented humanresources to support the EDGE (Expand/Digital/
Global/Experience) strategy

Human Capital Management Philosophy

3

Cultivate management personnel that can manage
both the business and the creative staff

We have formulated the following philosophy in the
belief that content creation is the source of increased
corporate value for the TBS Group and that human capitalmanagement that emphasizes creator development is a
key success factor.
We will nurture autonomous individuals with diverse
creative abilities and high expertise who can adapt toever-changing social and business environments. At thesame time, we will also create an organization where
people can display their creative abilities to the utmost
as part of teams where members respect each other’svalues in a free corporate culture. Additionally, we will
provide an environment that makes everyone working
there happy.
The TBS Group will endeavor to increase its corporate
value through this kind of human capital management.

1Strategy

2 Internal Environment Improvement Policy1Create structures that support skill development andtackling long-term challenges

2

Promote diverse working styles for individuals toincrease the personnel retention rate3

Encourage health management so that working staff
and their families can live healthy lives

75

Message from the
President

TBS’s Human Resource Development

Human Capital Management

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Human Resource Development Policy

Develop and Strengthen Both Human Resources That Create and Those That Expand
From each moment, a better tomorrow.
VISION 2030
Expand content without limit
beyond the framework ofbroadcasting
Revenue
Operating income
Ratio of operating
income to revenue
Revenue from broadcasting business
Non-broadcasting
revenue

Human Resource
Development
Three Policies¥550 billion¥38.5 billion

60%

Human capital management
philosophy

1

2

Nurture creators for content creation
as the key to increasing value
Acquire talents with diverse creative
abilities and high expertise
Build an organization that can
maximize creativity
Create an environment that makes
our colleagues happy

Output*Figures are for FY2022 unless otherwise noted

7.0%
40%

Measures and KPIs

3

Create a human resource portfolio of creative staff to develop
original IP and enhancecreative material that
contributes to society

Create a portfolioof business-oriented
human resources tosupport the EDGE
strategy

Cultivate management
personnel that canmanage both the business and the creative
staff

Risks and
Opportunities
Risks• Human resources incharge of creative material leaving for othercompanies or media

1

Content business education for young creators(Short-term internal study abroad participants: 6)• Open up new markets bycreating innovative content

Recruitment strategy according to VISION 2030
(New graduates: 33, Mid-career hires: 25)• TBS falling behind othercompanies by missing
business opportunities

2
Opportunities• Acquire excellent humanresources who share ourvision by announcing
VISION 2030
• S table and sustained
growth due to strengthening management
personnel who support
the content business

Course hours (448 hours total)• Increase revenue through thecontinuous mass productionof quality content

Human resource development centered on TGU(Total number of participants: 18,000)

3• Increase profit ratio throughoriginal IP (not based onother works)

Human resource shift to DX/globalization
Enhance intellectual property strategy andbusiness laws, etc.
(Recruited 8 traders/lawyers/accountants)
Knowledge sharing courses for EDGE strategy
promoters (41 courses)• Win overwhelming trust by
fulfilling our social mission
as the starting point for
influencing society

Secure and develop senior management
candidates(Selective training: 140 persons since 2016)
Develop Group senior management candidates(Group leader training: 10 times total)
Develop female managers(Percentage of female managers: 15.76%*HD & TV as of July 1, 2023)• Further increase the company’s (Group's) productionrate• Expand domestic and international business opportunities by establishing brand
value

76

TBS’s Human Resource Development

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Message from the Division President of Human Resources and Labor

Weaving Growth for the Future
The TBS Group's Human Capital Management Strategies and Initiatives

Hirohiko Shigemune
Division President of Human Resources and Labor, TBS HOLDINGS, INC.

profileJoined TBS mid-career in 1998.
After working in the TBS News and Content Business Divisions, he handled recruitment,planning and the retiree reemployment system in the Personnel Department.
After serving as the director of the Personnel Department, director of the Department
of Budget Control, Division President of the Corporate Planning and then Division
President of the Business Investment Strategy, in 2022 he was appointed Division
President of Human Resources and Labor.

To create the TBS Group Human Capital Management we recently announced, we formed a working group with members
drawn mainly from TBS Group University and the Division of Human Resources and Labor. They came up with a draft that wasapproved after multiple discussions at the management level.
Having changed our company name from Tokyo Broadcasting
System Holdings and being in the process of evolving into a content company, we took stock of all of the measures we haveunconsciously engaged in to date and revised and visualized ourphilosophies and strategies. The Human Capital Management
Philosophy and Six Strategies you read about are the results ofthat process, and they also contain areas for strengthening that
we became aware of during the process.
Carefully nurturing talents for producing creative material
as stated in the Human Resource Development Policies is something we had been focused on based on an unspoken understanding, independent of management policies here and there,
and naturally we were adopting development methods that suitthe modern era as a matter of course, even before the creationof the management strategy and other strategies. In the coming
years, however, there will be a growing need to create content
to suit a variety of devices and monetization points. That is afield that requires knowledge from both within and outside thecompany, and it is one where I believe strategies and measures
must be deployed from a high viewpoint.
When it comes to personnel to handle the business side ofthings, our urgent task is to expand the number of business producers who can expand content under the EDGE strategy andwho understand content (products). While we will endeavor to
recruit them from outside as well, we already have many talentsin the company who understand content, so I think that internal development will ultimately be the wisest course of action.
Another challenge is developing creators who desire to deploy
their works on the world stage.
We have an in-house university called TBS Group University(TGU) which is one of the bodies responsible for human resource
development. We have developed and deployed a two-tiered
human resource development structure where each TBS Group
company carries out its own human resources development initiatives while TGU provides group-wide support through crossgroup human resource development initiatives.
On the other hand, when it comes to improving the internal
company environment, when we took stock recently, we realizedthat we had already made a lot of progress in many aspects. For
example, the issue of men taking paternity leave is receiving a
lot of attention lately, but we already have systems in place that
go beyond legal stipulations when it comes to taking time off tosupport working styles that suit a variety of life stages. Furthermore, we were certified as a Health & Productivity Management
Outstanding Organization this year, and in the course of the application process, we learned that our employees have a highlevel of health awareness, in contrast to the image of the industry. Going forward, we will proactively promote communication,
increase engagement, and undertake measures aimed at young
people who have various ideas about career development.
The current “human capital management” is but a firstdraft. We will continue to refine it in line with constant changes
in the external environment and the continued transformationof TBS, and we will also strive to make it easier for all our stakeholders to understand its effectiveness.

77

TBS’s Human Resource Development

Message from the
President

Strategies for
Business

Long-Term Vision andMedium-Term Management Plan

Content Innovation& Technology

Value Creation Story

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Human Resources that Create Wonderful “Moments”

A Stage for Growth and Transformation
The Future Carved Out by TGU, Our In-House University
TGU is our in-house university that was established in
2018. Through education, it increases the unity of thewhole Group and promotes a corporate culture that supports growth and leads to innovation. It develops humanresources for achieving VISION 2030 and drives our transformation into an integrated media company.
TBS Group University is an in-house university that was established in 2018 in response to requests from employees. It organizes courses and training sessions all year around and serves
as a learning platform for the Group’s 8,000 employees. In an
age where predicting the future is difficult due to the rise ofdigital media, for us to survive powerfully as an organization,
each individual must be sensitive to trends in times of turbulentchange and must learn, think, and constantly be ready to takeup the next challenge. The following three points represent theoperating philosophy of TGU, which was launched to be part ofthis management strategy.

An increase in participants due to the expansion of
online courses
Number of courses

Participants (total)

18,000164

161(1) Raise the growth capacity of the entire TBS GroupA total of 160 courses and seminars were held in FY2022.
Over 50 of the courses were proposed and planned by departments and divisions and by Group companies on their own
initiative. As the sharing and proposal of knowledge throughin-house speakers becomes established and knowledge spreads
throughout the Group, there is growing momentum for the useof that knowledge as a trigger for innovation.
In January 2022, TGU Campus was established in The Hexagon, a building next to the TBS Broadcast Center. With TGU as
one of its hubs, the Group's human capital management willcontinue to evolve, and provide all those working here withwonderful learning moments as a path to increasing corporate
value.

Since VISION 2030 was announced in 2021, the goals of oureducation have become even clearer. For many years, we single-mindedly pursued a path as a broadcasting company. From
now on, however, it is expected that we will leverage the content production skills we are proud of in order to transform
into an integrated media company. To achieve VISION 2030 as
well, the Group as a whole has changed directions to put evenmore effort into human resource development and further enhance human capital. We are improving training conducted on
a Group basis, and carrying out human resource development
to serve as the foundation for developing new businesses that
display group synergy.

137

14,500121(2) Increase the unity of the TBS Group105(3) Foster a culture that leads to innovation (new businesses)
4,339

By developing all Group employees into autonomous humanresources who generate new content and businesses, we willfurther increase corporate value and achieve perpetual success.

4,150
3,960

2018

2019

2020

2021

2022

(FY)

10.0

78

TBS’s Human Resource Development

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Human Resources that Create Wonderful “Moments”

Human Resource Development for the Future
Educational Training and One-on-One Meetings
The key to the EDGE strategy is the balanced development of talents to handle both the creation side and thebusiness side of our work. To achieve that, we offer a fullrange of educational and training opportunities, and in
FY2022 we introduced one-on-one meetings to strengthen
relationships of trust within the company and help managers support the growth of their subordinates.

Create a human resource portfolio of creative staff
to develop original IP and enhance creative material
that contributes to society

Create a portfolio of business-oriented humanresources to support the EDGE strategy

One-on-one meetings: 20 minutes a month for thesake of subordinates’ growth

Selected participants

Selected·N ext-generation
leader development
programGroup employee elective courses
Selected·M arketing, accounting, criticalthinking, meeting facilitation,coaching, leadership, etc.

35-year old
training

Officer training· New counselor
training· New manager
training

Participate

TBS Group University

50-year old
training*Continuous learning, one course a year

All employees are eligible toparticipate regardless of theirstage of training

8th yeartraining
Participate

General courses

5th yeartraining

One-on-one training· 1st one-on-one
training

3rd yeartraining· Broadcasting/media, laws andrules, new businesses, innovation,
working/living styles, SDGs,
courses to pass skills on to thenext generation*Sharing knowledge, passing on skills(in-house and external speakers) 81
courses a year, free participation mainly
at lunchtime

JNN joint training· JNN 8th year joint
training

2nd yeartraining· JNN new employee
joint training250Φ(mm)
11 個
Scale1/2

TBS group joint training

Group joint new manager training

6-months
post-joining
training
New
employeetraining

Group joint training for
selected leadersParticipate

In April 2022, TBS Television, Inc.
launched a new system called “Oneon-one meetings: a regular check-in
between a manager and an employee
to give feedback, resolve issues, andhelp the employee grow in their roles.”Under this system, employees meetwith their managers once a month for
20 minutes for one-on-one dialogue. When it was being introduced, we invited Kosuke Honma, Senior Advisor of Z Holdings
Corporation, as a speaker, and we also held a mock training
session for all employees. It was an opportunity for managers
to realize the appeal and capabilities of their subordinates thatthey were not aware of, so we intend to continue the system fora long time and make it a part of TBS culture.

Training in stages

Participate

We have recruited experienced mid-career employees ranging
from DX and overseas business experts to lawyers, certified
public accountants and marketing personnel (25 mid-careerhires as against 33 new graduates in FY2022). By using in-housespeakers for training and TGU, among other means, we allow
the newly joined business personnel to participate freely in all
aspects of the company and create opportunities for them togrow further.

To elevate employees' viewpoints from a focus on the front lines,
and to encourage them to have a changed awareness of management, we organize group training for 35-year-olds that goesbeyond the year of joining and departmental lines. Furthermore, starting in 2016, we introduced selective six-month training for next-generation
leader candidates. It plays
the role of a management
personnel talent pool, andto date it has produced
10 corporate officers andexecutive officers and 29
division presidents out ofa total of 140 participants.

Human resource development training and learning
structure

Participate

In 1996, the Department of Personnel Education was spun off
from the Personnel Department. It has provided all employeeswith the training they need, such as on human rights and theBroadcast Act, in order to become media persons who contributeto society. We provide a full complement of training in stages
until the 8th year after joining the company (when employees
are estimated to be 30 years old), and we conduct training for
new employees as well as all-day/group training in their 2nd,
3rd, 5th and 8th years. Over the course of those 8 years, each
employee is guaranteed 520 hours of training time, bolstering
the foundation for the development of human resources thatcan grow autonomously.

Create a human resource portfolio of creative staff
to develop original IP and enhance creative material
that contributes to societyGroup joint new employee training

79

TBS’s Human Resource Development

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Entertainment Show Producer

I Want the Culture of “Teaching and Being Taught” to Take Root
TBS implements a Next-Generation Leader Development Program to nurture future leaders. Members selected from all
Group companies meet every year to consider the Group’s management issues. We asked an FY2022 participant from the content production scene her thoughts on changes in herself andthe company.

Nozomi Takamiya
Program Production Department I , Content Production Division,
TBS TELEVISION, INC.

profileJoined TBS in 2002.
Became a producer after working as an assistant director and director.
She is currently in charge of the following programs: “COUNT DOWNTV LIVE!LIVE! ,” “Masahiro Nakai's Smile Friday,” “ONGAKUNOHI,” and“Japan Record Awards.”

A switch from the concept of“learning by watching your seniors”

Expanding created productions
into businesses

Participating in the Next-Generation Leader Development Program was a good opportunity for me to consider what a program
producer (i.e. leader) is supposed to be. Discussing issues withsenior and junior colleagues of the same generation fromother departments was a highly stimulating experience as well.
Moreover, it made me start to think that I need to build systems to ensure that program staff will continue to grow as usual
even if I cease to be the program producer one day. Back when I
was an assistant director, we were expected to learn by watching
our senior colleagues. We spent time with them day and night,
going into the editing room, watching and learning the editing
process up close, and trying to figure out how to make programs
more interesting during long meetings with them. There weremany such opportunities in the past to learn by watching oursenior colleagues at work, which made it an environment where
one could develop naturally. Right now the environment haschanged greatly—there are limits on working hours, and directors finish the editing on their own computers, for example—sothe old concept of learning by watching doesn't work any longer.
That’s why it will be crucial for veteran production staff, myself
included, to have a strong mindset of actively nurturing their junior colleagues from now on. I’m sure that when those juniors
who were taught become veterans themselves, they will feelthe same sense of obligation to pass down the things they were
taught to the next generation. I hope the culture of teaching andbeing taught takes permanent root in the TBS Group.

In light of TBS’s current situation, I feel it is extremely importantfor us producers to think about how to expand the programs
we have made into businesses. For one of the programs I’m incharge of, “COUNT DOWN TV LIVE!LIVE!,” we worked together
with the Live Entertainment Department and started hosting the“COUNT DOWN TV LIVE!LIVE!” Fes event at an external venue
from 2021 onwards. Once we started, I realized that the mostimportant thing is that the program that is being broadcast must
itself be high quality and it must be supported by the audience.
As a producer, I have sworn to always remember the two partsof this process: first, making a popular program and secondly,
expanding that into a business.
Furthermore, right now the company is recruiting an increasing number of experienced mid-career employees, so we havemore personnel from diverse backgrounds running the businessside of things. There are many deployable structures in place inthe company such as broadcasting, streaming, business, and thesale of merchandise, but we are still very much a rookie organization when it comes to the question of “How can we make thisbusiness succeed?” That is why we should actively engage the
new members who join us every day by, for example, creating aroad map together for the things
we can do to make our businesses succeed. I think it is important
to expand TBS’s businesses in the
future through this interaction
while also teaching others and being taught ourselves.

80

TBS’s Internal Environment Improvement

Message from the
President

Human Capital Management

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Internal Environment Improvement Policy

Creating a Secure Environment through Skill Improvement Support, Respect for Diversity,and Health Management
From each moment, a better tomorrow.
VISION 2030
Expand content without limit
beyond the framework ofbroadcasting
Revenue
Operating income
Ratio of operating
income to revenue
Revenue from broadcasting business
Non-broadcasting
revenue¥550 billion¥38.5 billion

Internal Environment
Improvement
Three Policies

60%

Human capital management
philosophy

1

2

Nurture creators for content creation
as the key to increasing value
Acquire talents with diverse creative
abilities and high expertise
Build an organization that can
maximize creativity
Create an environment that makes
our colleagues happy

Output*Figures are for FY2022 unless otherwise noted

7.0%
40%

Measures and KPIs

3

Create structuresthat support skill
development andtaking on new
challenges

Promote diverse
working styles forindividuals to improve
the personnel
retention rate

Encourage healthmanagement toprotect the healthof our colleagues,
including staff outside
the company, andtheir families

Risks and
Opportunities
Risks• Stagnation in creative
productions due to an
inadequate environment
for self-challenge

1

Assign human resources according to aptitude throughthe improvement of personnel surveys(personnel survey sent directly to the Personnel
Department: 57%)
Managers and subordinates encourage each other's
growthImplement 360 Feedback and one-on-one meetings(360FB: 100%)(One-on-one implementation rate: 58% Target: 80%)•A
 n exodus of human resources due to insufficientworking style reform

2

Promote “T-work,” a working styleunique to TBS, including telework(Telework rate: 17%)
(Turnover: 2.3%)

3

As a certified Health & Productivity Management
Outstanding Organization, we undertake measures topromote health such as walking, and recommending
the consumption of breakfast(Percentage who miss breakfast: 36%. Target:
under 26.5%)
Introducing in-house mental health counselors(2 neurologists, 2 counselors)
Introduction of joint Group external EAP (Employee
Assistance Program)Opportunities• Greater opportunity
for attractive content
creation due toimproved skills• Improved personnel
retention rate due toencouragement ofworking style reform• Better content quality andbusiness efficiency due toimproved employee skills• Excellent talents assemble,
attracted by the positive
working environment• Qualitative improvement
in content services
bolstered by superior
health management• Increase in social evaluation, increase in market
evaluation (share price,etc.) as a ripple effect ofimproved sustainability

81

TBS’s Internal Environment Improvement

Message from the
PresidentInternal Environment Improvement

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Developing a Positive Work Environment

Creating a Workplace Where All Our Colleagues Can Flourish
At TBS, we are promoting “T-work,” a working styleunique to TBS, where people with diverse ideas and values can work together to create new value. In March 2023,
we were certified as Health & Productivity Management
Outstanding Organizations for 2023.

Key indicators

Certified as Health & Productivity Management Outstanding Organizations for 2023

Work engagement (energy,
enthusiasm, immersion)*3

In March 2023, TBS Holdings, Inc. and TBS Television, Inc. were certified
as Health & Productivity Management Outstanding Organizations for2023 (large enterprise category) in the Certified Health & Productivity
Management Outstanding Organizations Recognition Program jointly
run by the Ministry of Economy, Trade and Industry and the Nippon
Kenko Kaigi. The program is a certification system that honors large
and small-to-medium enterprises that carry out particularly excellent
health management.
Based on the Sustainability Policy formulated in FY2021, TBS has
put a variety of measures in place to create safe and fulfilling work
environments where creativity can be displayed. We received this certification because three of our initiatives—“boosting communication
between employees,” “returning to work after a leave of absence, andbalancing work with medical treatment,” and “supporting women's
unique health issues”—were especially highly evaluated.
We measured the health issues (key indicators) we need to address
under health management in order to create a positive workplace environment and have published them as ESG data.

Item
TurnoverAbsenteeism*1

Presenteeism*2

Scope

Unit

FY2021TBS
HOLDINGS,
INC.
+
TBS
TELEVISION,
INC.

%

1.39

FY2022

Target1.39 or less

Days

1.8

1 or lessPoints70

70 or more

Points

3.6 3.6 or moreleave + a special leave of absence for childcare) in FY2022 at TBS rose to66.7%, an increase of 23.8 points compared to the previous fiscal year.
TBS is also promoting women to management positions. There are
23 women among the line bureau chiefs, center chiefs, and line department heads that are responsible for core of the business, representing
16.5% of the total.

*1 Number of days absent from work due to injury or illness*2 A situation where employees come to work but cannot perform their tasks fully due to health problems. The
results of an investigation using absolute presenteeism from the Single-Item Presenteeism Question (SPQ)*3 Measured by incorporating the three questions of the ultrashort version of the Utrecht Work Engagement
Scale

Employment of persons with disabilities

Developing an employment environment where
diverse human resources can flourish

The employment rate of persons with disabilities at TBS Television, Inc., the core of the Group, was 2.9% as of April 1, 2023.
Many of them work from home. Until now they have concentrated on tasks that can be completed individually, but as aresult of rapid advancements in telework environments during
the COVID-19 pandemic, they are now capable of working ingroups and handling tasks that require close communication.
One of those tasks is making “Tweet reports” for the Content
Production Division. Employees with disabilities analyze reactions to programs in social media in real time while at homeand submit the results to the company as feedback, incorporating their own impressions. As the production staff members
closest to the viewers, they support program production andhelp to increase ratings.
The reports also make many employees aware of theteam’s hard work, helping
others understand that adisability is also part of one’s
individuality, and fostering
a culture of respecting diverse kinds of individuality
throughout the company.

TBS strives to create an environment where a diverse body of humanresources can continue to work even as they go through life events
like childcare, caregiving and medical treatment. We have provided anenvironment where it is easy to take childcare leave, and to increase
the group-wide rate of men in particular taking it, in April 2022 welaunched a website that provides information for employees taking
childcare leave containing an explanation of the system and personal
experiences on the company's internal cloud. In October, we established a new system known as the “Leave of Absence for Childcare after Birth” system, also called the “Postnatal Papa Leave” for short. Fourmale employees have already taken Postnatal Papa Leave in FY2022. As
a result, the rate of male employees taking childcare leave (childcare

66.7

%

Rate of men taking childcare
leave (TBS TV + Holdings)(FY2022 childcare leave +a leave of absence for childcare)

16.5

%

Percentage of femaleline managers

Supporting program production by writing
reports(As of July 1, 2023)

82

TBS’s Internal Environment Improvement

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Internal Environment Improvement Initiatives

Creating Positive and Sustainable Creative Production Sites
To make program production sites even more positive andsustainable, TBS actively introduces the latest technology
to reduce staff workload and develop the working environment.

Holding production company meetings about working styles
In October 2022, the Content Production Division, Infotainment
Division, and TV Sports Division jointly held the first ever briefing
session for production companies about working styles.
To the total of 147 production companies, we explained how
the company is renovating its offices to make the workplace
more positive for production staff, and we spoke about the compliance initiatives all TBS Group companies are undertaking. We
also actively solicited opinions and ideas from the production
companies and are engaged in dialogue on new issues. We intend to create more sustainable production sites while building
positive partnerships with production companies.

The Harusuke digital signage system is a system that makes it
possible complete instructions for performers and studio schedules that were all previously created by hand online. Thanks to its
introduction, we have successfully reduced staff working hours
by approximately 330 hours per month (estimated) throughout
the entire Broadcast Center.
Additionally, in October 2022 we introduced TBS Media
Branch, a system capable of sending completed program data
online. This has removed the need to transport and deliver XDCAMs (physical media) directly.
Furthermore, in 2022 we started the high-speed transmission of materials after recording at drama production sites. Not
only did this eliminate the need to transport material between
the Midoriyama Studio and the editing rooms in Akasaka but
it also made it possible to watch and correct edited footage ina short period of time after filming, leading to higher quality.

Creating positive, sustainable office environments
The entire Broadcast Center has been renovated, giving it bright,
open floors, and installing storage space for location filming
equipment and video editing booths. We have prepared an office environment where all staff can work comfortably.
In January 2023, TBS Sparkle, Inc. renovated its office under the themes of “further oneness” and “SDGs.” They installed
LOUNGE18, a space for interaction that all employees and staff
can use, encouraging communication across the boundaries ofdepartment and position.
They also took great care with the desk layout, creating solo
work areas, group work areas, and other spaces in order to diversify working styles and allow employees to freely choose theirworking area based on their working style.
Furthermore, a shared equipment storage unit called theShare Dock was installed to reuse items left over on production
sets and items which would have previously been thrown away.
This is a measure to reduce waste by sharing the equipment
owned by each program within the company.

Workload reduction using ICT
TBS has been developing, introducing and using the latest technology to reduce staff workload and is actively involved in workload reduction using ICT.
Mojiko is an audio transcription editor that uses AI voice recognition technology to minimize the immense time required totranscribe audio at program production sites. It is highly rated
for significantly improving staff workloads. It has been introduced not only at TBS but also at 27 JNN affiliates, as well as at
24 external companies through an agent.
Harusuke digital signage system

LOUNGE18 is a space filled with the warmth of The Share Dock has over 50 types ofwood, inspiring ideas for fresh innovationequipment, including files and staplers

83

TBS’s Internal Environment Improvement

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

BS-TBS, INC. Drama Program Producer

Introducing an Intimacy Coordinator:
Creating Production Sites That Value People
We hired an intimacy coordinator to protect the actors physically and mentally and to help realize the director's intentions
as much as possible during the filming of the sex scenes in“Sawako: Endless Revenge”, a drama series broadcast on BSTBS starting in October 2022. The producer discusses this trailblazing initiative in the world of Japanese TV dramas.

Takeshi Ariga
Content Production Department., TV Content Production
Center, TV Content Programming Division, BS-TBS, INC.

profileJoined an advertising company in 2007 where he participated in sales of advertising tonewspapers and magazine media.
In 2013, he joined BS-TBS, INC. mid-career.
After working in the Sales and TV Programming Departments, he assumed his current
position in 2022.
He is a content producer for multiple programs such as dramas, entertainment shows
and travel shows.

Introducing an intimacy coordinator
as a new move

Creating sustainable production structuresat comfortable sets

BS-TBS produced drama series for the first time in 11 years in
2022. One of them was the dramatization of an original webcomic known as “Sawako.” The original story has an original
world view, containing romance, suspense and horror, and in myopinion, the occasional depictions of sex are important elements
for defining Sawako, the female protagonist.
However, since there are many issues involving harassmentin the film industry these days, we could imagine various issues
cropping up while filming the sex scenes. As we considered how
to effectively dramatize the original author's ideas, we met
Chiho Asada, an intimacy coordinator, and were fortunate tohave her join the team.
Once the screenplay was completed, the producer, director
and Ms. Asada first read the script at the company and checked
the parts that could be called “intimate scenes.” After that, Ms.
Asada spoke with the actors to check if they would have any issues with acting or if they had any concerns. Furthermore, when
it was time to film the intimacy scenes on set, Ms. Asada conveyed the director's directional intent to the actors again andcontinued to communicate carefully with them. The staff also
talked among themselves and considerately ensured that theminimum number of people were present on set and around themonitor during the filming of the scenes.
Since it was our first such attempt, there was some confusion
on set as well, but gaining the understanding and cooperationof the director and the rest of the team and being able to work
together on this effort was very meaningful.

For this drama, I had the relevant persons undergo “Respect
Training” intended to help them stop harassment before it starts.
The aim of the program was not to make blanket statements
about what actions constitute harassment but to get participants
to stop and think about what it means to respect someone andwhether our words and actions respect the other person.
I feel there are many challenges to address if we want to create even better environments on drama production sets, including not only intimate scenes but also issues like irregular working
styles, long working hours and the lack of days off.
In such circumstances, I want to keep the attitude of “valuing people” firmly in mind in the works I handle. It is people
who make programs, and people who perform in them, so theynaturally contain “emotions.” That's why I feel it’s important tocreate healthy set environments that are more fun and easierto focus in, even if it’s just a little, so that the accumulation ofthese little improvements will have a highly positive effect on
our works.
BS-TBS has been trying its hand at producing drama series
since last year, and I believe making dramas is an extremely effective way of increasing BS-TBS'svisibility and brand power. Thatmakes it all the more crucial for
us to create sustainable production structures and production
environments.

84

Human Rights and Sustainable
Procurement

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Creating a Sustainable Society

Formulating a Human Rights Policy and Sustainable Procurement Guidelines
In March 2023, we formulated the TBS Group Human Rights Policy and the TBS Group Sustainable Procurement Guidelines.
The Human Rights Policy forms the basis of our human capital management while the Sustainable Procurement Guidelines
are positioned as guidelines to help us maintain and develop our partnerships with people and organizations throughout theworld and fulfill the international duty of achieving a sustainable society.
TBS Group Human Rights Policy

TBS Group Sustainable Procurement Guidelines

According to our previously announced TBS Group Code of Conduct and TBS Group Standards of Conduct, the TBS has sought to respect humanrights through its business activities and to improve the environment for achieving that end. The TBS Group Human Rights Policy (hereafter “thispolicy”) formulated this time spells out our human rights-related policies and initiatives based on the TBS Group Code of Conduct and TBS Group
Standards of Conduct in detail and applies to all TBS Group corporate officers and employees.
As a member of society, the TBS Group once again recognizes the importance of respecting human rights and is committed to fulfilling its
responsibility to respect the fundamental human rights of its executives, employees and all other stakeholders. We expect all suppliers to comply
with this policy as well.
1. S cope of application All TBS Group corporate officers and employees
2. C ommitment to respecting human rights The TBS Group respects human rights in all of its corporate activities.
3. Respect for individual workers and elimination of discrimination We do not accept discrimination for reasons such as race, tribe, nationality andplace of origin, gender, age, religious or political ideology, economic or social relationships, presence or absence of disability, marriage history,
having or not having children, sexual orientation, gender identity, etc., and we provide equal opportunities to all people.
4. Respect for workers' rights We do not accept forced labor, overwork, low wage work (labor paid for at rates below minimum wage), childlabor, harassment, bullying, or unfair treatment. We obey the laws and ordinances of the region where employees work, and under fair working
conditions, we provide a suitable labor environment without forced labor or overwork, take care to guarantee minimum wage and pay morethan a living wage, and respect freedom of association and the right to collective bargaining.
5. Protection of human rights in the transmission and provision of content and services We are aware of our social responsibility and mission as acontent group, and we respect fundamental human rights in all the content and services we transmit and provide, protect freedom of expression
by guaranteeing autonomy and fairness, prevent human rights violations, and contribute to increased awareness of human rights in society.
6. Obedience to standards, laws and ordinances concerning respect for human rights We support and respect Japanese laws and regulations
concerning respect for human rights as well as international standards about human rights such as the International Bill of Human Rights, which
stipulates the fundamental human rights every person in the world should enjoy, and the ILO Declaration on Fundamental Principles and Rights
at Work stipulated by the International Labour Organization, and we also endeavor to implement them based on the ideas behind the UN's
Guiding Principles on Business and Human Rights. If there is a divergence between the laws and regulations and international standards, we willprioritize respecting the international standards as much as possible.
President and Representative Director, TBS HOLDINGS, INC.

Takashi Sasaki■ Key points of the Guidelines
1. C omply with laws andregulations

5. Engage in fair businessactivities

2. Respect human rights

6. Ensure quality

3. Improve the working
environment

7. Ensure information security

4. Show concern for theenvironment

8. Co-exist with local
communities

The TBS Group Sustainable Procurement Guidelines are standards
for the whole supply chain providing products and services, mainly
broadcasts and content. The guidelines set out matters that TBS
Group corporate officers and employees must follow and require
suppliers to practice as they pursue sustainable procurement, basedon which we will build positive partnerships founded on mutual
trust with our suppliers.
Furthermore, by making sure that our suppliers and their supply
chains understand and are thoroughly familiar with the guidelines,
we will promote sustainable procurement initiatives in all supply
chains related to the TBS Group's businesses.

TBS Group Sustainable Procurement Guidelines
https://www.tbs.co.jp/TBS_sustainability/pdf/
sustainableprocurement.pdf

85

T he G l obal E nv i ro nment“ONGAKUNOHI”

The Global Environment

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Addressing Global Environmental Issues

Making Full Use of Our Broadcasting Power to Become the“Starting Point for Influencing Society”
Key issues for the TBS Group (as of May 2022)
From Materiality 04•S etting and implementing targets to achieve zero carbon
emissions•P romoting environmentally-friendly sustainable content
production•E nhancing measures for biodiversity preservation

TBS has consistently communicated messages aimed at addressing social issues throughout its history. We consider solving environmental issues at the global level to be one of the key issuesof the entire Group, and we are implementing various measures
to that end.
In 2021 we endorsed the recommendations of the Task Forceon Climate-Related Financial Disclosures (TCFD), and in 2022 wedisclosed a report analyzing and considering the risks and opportunities posed to our business by climate change in two scenarios(1.5°C and 4.0°C) according to the TCFD recommendations. In
March 2023, we also formulated the TBS Group Water Resource
Protection Policy to serve as a guideline to contributing to a sustainable global environment.
On biodiversity, in addition to continuing to share information in a way typical of a content company, such as “Amazing
Animals/WAKUWAKU” YouTube channel, the whole Group isaware of our goal to be a “leading SDG station” even at ordinary times. This can be seen in our strengthening of continuous
initiatives such as going paperless at content production sites
and increasing recycling rates.

TargetManagement
Structure

01
04
Creating globally
beloved originalcontent
Performance andCorporate Data

Delivering wonderful“moments” to all the
lives on earth

SDG project “Week to Make the Earth Smile”

Achieving carbon neutrality at the TBS Broadcast
Center, buildings in the Akasaka Sacas Cultural
Facility, and the Midoriyama Studio in FY2023

During the spring
2023 campaign, weestablished “SDGsDay” and made all ofour broadcasts carbon
neutral. →p.38

TBS Broadcast Center & Akasaka Sacas Cultural Facility
CO2 emissions (t-CO2)
42%
25%
31,79630,236
24,525

2002-2004

2010

2015

(average)

18,5152021

0 Carbonneutrality
2023

Latest major topics(FY)

CO2 emissions(TBS Broadcast Center +Akasaka Sacas Cultural Facility)
FY2022

Initiatives TBS should take
Prompting a change in awareness of climatechange and becoming the “starting point
for influencing society”
Actively working to make the company
carbon-free
Coverage of disasters that is trusted byviewers

Art set recycling rate

17,451 t-Co2

84%(Standard emissions*
45.1% relative decrease)(average of past 5 fiscal years)

Percentage reduction in
paper use per live broadcast(“Hiruobi” from January 2023)

64%

Subscribers to the“Amazing Animals/
WAKUWAKU”
YouTube channel:

488,000(As of August 1, 2023)

Average value from FY2002-2004

87

TCFD-based Information Disclosures

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Response to Climate Change

Achieving Carbon Neutrality for Major Facilities in FY2023
In a time when a response to climate change has becomea pressing issue, TBS was the first news organization toannounce its endorsement of TCFD recommendations in
November 2021. In August 2022, we published “ TBS’s Current and Future Efforts to Combat Climate Change,” ourfirst report compiling the effects of climate change on ourbusinesses, and other issues. We have also disclosed information according to the TCFD-recommended frameworks
for “Governance,” “Strategy,” “Risk Management,” and“Indices and Targets.” A summary of “Strategy” and “Indices and Targets” will be presented here in this integrated
report.
Indices and Targets

Plan for carbon neutrality

As a short-term target, we will achieve carbon neutrality atthree major facilities in FY2023, namely the TBS Broadcast
Center, buildings in the Akasaka Sacas Cultural Facility (Akasaka
ACT Theater, BLITZ Studio, Akasaka Sacas Square), and theMidoriyama Studio. This is the first step toward “setting andimplementing targets to achieve zero carbon emissions,” whichis part of the TBS Group’s concept of materiality. This will beachieved by further reducing CO2 emissions (Scope 1 and 2) andprocuring renewable energy. Meeting this target means thatnearly 70% of TBS TV’s regular programs will be recorded in thestudio or broadcast live with zero CO2 emissions.
In addition to working to further reduce emissions and use
renewable energy at the TBS Broadcast Center, in FY2023 we willcalculate the Scope 1 and 2 GHG emissions and also begin the
study for calculating Scope 3 emissions.

FY2023
TBS Broadcast Center

Akasaka Sacas Cultural Facility

Midoriyama Studiowill achieve carbon neutrality

Reduction of energy consumption
TBS achieved a 42% reduction in CO2 emissions by the Broadcast Center and buildings in the Akasaka Sacas Cultural Facility
by FY2021, compared to the average emissions from 2002-2004,
and a 25% reduction compared to FY2015. The TBS Broadcast
Center also reduced its energy consumption by around 30%
through means such as using LED lights for studio illumination.
In addition, from the perspective of our business continuity plan
(BCP), i.e. the responsibility of a news organization to continue broadcasting even during power outages and disasters, wehave our own in-house power generation system (CGS) in thebasement of our headquarters. By extending the duration of the
shutdown at night from the current 2 and a half hours to 5 hours
would reduce CO2 emissions by approximately 200 tons per year.

Toda Transmitting Station, which is the main transmitting station for TBS Radio’s AM broadcasting, and the TBS Akasaka ACTTheater and two other buildings in the Akasaka Sacas Cultural
Facility. In the future, the TBS Broadcast Center will also seek toconvert to 100% renewable energy.
TBS will continue to implement various climate change measures, such as switching to high-efficiency equipment. And as anews organization and a content-producing group with varied
media, it is TBS’s responsibility to use its ability to communicate
and influence to serve as the “starting point for influencing society” toward the realization of a carbon-free society.

TBS Broadcast Center & Akasaka Sacas Cultural
Facility CO2 emissions (t-CO2)
42%
25%
31,79630,236
24,525

18,5150 Carbonneutrality

Conversion to renewable energy
In 2018, the Group entered into a capital and business alliancewith UPDATER Inc. (formerly Minna Denryoku [Everyone’s Power]), a venture company dealing with renewable energy, to promote the use of renewable energy.
In FY2021, the Midoriyama Studio became one of the largest
studios in Japan to use 100% renewable energy, following the

2002-2004(average)

2010

2015

2021

2023

(FY)

88

TCFD-based Information Disclosures

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Response to Climate Change

Understanding the Risks and Opportunities of Climate Change andEstablishing Suitable Business Strategies
Effect on TBS business by scenario
Classification

Item
Introduction and strengthening of carbon-free regulations

Transition
risks

Physicalrisks

Opportunities

What will beaffected

Impact1.5°C scenario

Future TBS Initiatives(countermeasures)

4°C scenario

Costs

—

Sales

—

Costs

—

Sales

—

Establishment of advertising rules by entities such as the government and industry
associations in terms of CO2
Greater external pressure to take environmental action (obtain environmental
accreditation)
Greater external pressure to take environmental action (fewer ads placed byadvertisers)
Contraction of the advertising market in conjunction with weather-related disasters

Sales

Damage to assets and equipment due to weather-related disasters

Costs

Diminished corporate reputation due to an inadequate BCP

Sales

—

Advances in energy-saving technology

Costs

—

Greater government subsidies for environmental efforts——

Reduced renewable energy procurement costs

Costs

Advances in technologies to reuse materials and equipment

Costs

Immediate

Actively conduct campaigns beyond programs and broadcasts such as
SDGs WEEK, and creating a movement involving viewers and clients
Medium- andlong-term—• Actively promote research on and adoption of techniques for lowcarbon program production and become an industry leader on that
front
Immediate
Medium- andlong-term

Sales

—

Greater need for environmental awareness campaigns (increase in media revenue)

Sales

—

Increased need for information in relation to weather and disaster preparedness

Sales

—

Greater requirements to increase the resilience of our reporting capabilities

Sales

—

Actively work to make the company
carbon-free• Aim for the entire Group to be carbon neutral in future by physicallyreducing CO2 emissions along with switching energy sources andusing more efficient broadcasting equipment—

Greater need for environmental awareness campaigns (increase in ad placements)

Prompt a change in awareness ofclimate change and becoming the“starting point for influencing society”

Coverage of disasters that is trusted
by viewers• TBS/JNN will further enhance its coverage of disasters through its
nationwide network. We will earn the overwhelming trust of viewers
by providing detailed information through terrestrial broadcasting aswell as online broadcasting, such as TBS NEWS DIG Powered by JNN

1 arrow indicates a financial impact of less than ¥100 million, and 2 arrows indicate a financial impact of between ¥100 million and ¥1 billion. For risks andopportunities where the impact is difficult to estimate, the impact of the item is limited to a qualitative assessment and represented by “—”.
(*) Reference scenario 1
 .5°C scenario: RCP2.6/SDS(Sustainable Development Scenario)/IEA NZE2050(Net Zero Emissions by 2050)
4°C scenario: RCP8.5/STEPS(Stated Policies Scenario)

89

Carbon Neutrality

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Promote Environmentally-Friendly Sustainable Content Production

The World’s First Hydrogen Broadcasting Van: the “Car that Makes the Earth Smile”
As part of its efforts to achieve a carbon-free society, theTBS Group has introduced the world's first hydrogen fuelcell broadcasting van. In light of TBS’s SDG projects, wenicknamed this van, which does not emit CO2 when running, the “Car that Makes the Earth Smile.” It is in active
use in a variety of fields, including live sports broadcasts.

In partnership with Toyota Motor Corporation
The “Car that Makes the Earth Smile” was jointly developedwith Toyota Motor Corporation, which has been promoting theSDGs together with us as a partner company since the start of
the “WEEK to Make the Earth Smile” SDG campaign. The vehicle has also been adopted by the Ministry of the Environment's
project that promotes utilization of hydrogen towards the construction of a carbon-free society.
The base of the van is the Toyota Coaster minibus while thepower source is the FC stack (fuel cells that generate energy using hydrogen) that the Toyota Mirai is equipped with. This gives
it an environmental performance that does not emit CO2 or other atmospheric pollutants when running while also being lownoise and low-vibration.
Since there are many opportunities for its use in live sports
broadcasts such as road races, we expect it to reduce environmental stress on the participants and spectators as well.
The inside of the broadcasting van is designed so that equipment and layouts can be changed to meet the needs of different purposes or programs, and live coverage seats can also be
installed. The body is designed in a vibrant blue with a motif ofdrops and bubbles that represent the clean energy of hydrogen.

Debuted at the 2023 New Year Ekiden relay
The “Car that Makes the Earth Smile” made its debut as thesecond mobile broadcasting van at the 67th All-Japan Men's
Corporate Team Ekiden Championships (New Year Ekiden) heldon January 1st, 2023, broadcasting the runners as they sprinted
powerfully through the course.
For the event, the broadcasting van needed to run the entire
100km course over a period of about 5 hours. Although it waspossible in theory, initially there were concerns about whether
hydrogen fuel would suffice under conditions like the external
temperature, but after several rehearsals, the van ran throughout the actual event without a hitch. Due to its low-noise andlow-vibration nature, it provided a better working environment
for staff and improved the quality of the broadcast by making
it possible to clearly capture the sounds of cheering from theroadside.
Since then, the van has been widely used across Japan,
mainly for live sports broadcasts such as “Stars On Ice” and “TheCrowns” (CBC), contributing to the promotion of sustainable,
environmentally-friendly content production.

Operating performance of a conventional
marathon broadcasting van
Annual mileage (actual):approx. 7,000km

Power used by broadcast
equipment:

9kW×300 hours

CO2 emitted by conventional diesel vehicles

2,835.16 kg-CO

13.5 kg-CO

2

2

a year per cara year per car(when running)(when generating power)(from the Official Guidebook for Calculating the Effects of
Global Warming Measures on Business)

Net zero90

Carbon Neutrality

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Promote Environmentally-Friendly Sustainable Content Production

Reducing CO2 and Recycling Resources during Content Production
TBS is actively taking steps to reduce CO2 at content
production sites, such as going paperless and reusing art
sets. We also broadcast Japan’s first ever carbon-neutral“green commercial.”of commercial broadcast where theemissions of both the sponsor andthe broadcasting station were carbon
neutral.

Broadcasting Japan’s first “green commercial”

Increasingly going paperless at production sites

In line with the 5th “Week to Make the Earth Smile” in fall 2022,
TBS broadcast “17 Goals: What We Can Do for the Future” (fiveepisodes) and achieved both Japan’s first ever carbon neutral
program and commercial.
We used the albert Calculator*1 to calculate the amount of
CO2 and other greenhouse gases emitted during the productionof the program.
For commercials from sponsoring companies that werebroadcast immediately after the program, we made separate
calculations for the sponsor’s Scope 3 emissions*2 and emissions
from the use of electricity at the broadcasting facility. We
purchased carbon credits derived from renewable energy
equivalent to the greenhouse gas emissions calculated in thisway, thereby contributing to the spread of renewable energy.
“Green commercial” is the name we have given to this kind

TBS Television, Inc., is increasingly going paperless at its program
production sites.
After introducing electronic tablets to its news program“News Studio” (Mon.-Fri. 15:49-19:00, Sun. 17:30-18:00) in May
2022, TBS News followed up by switching from paper printouts
such as broadcast scripts and progress charts to electronic tabletsfor “news23” (Mon.-Thu. 23:00-0:01, Fri. 23:58-0:53) in October
2022. As a result, “news23” was able to reduce the amount of
paper used by each broadcast by around 52.1%.
The Infotainment Division’s information program, “Hiruobi”(Mon.-Fri. 10:25-13:55), also began using electronic tablets inJanuary 2023. They previously used large volumes of copier paper for creating design drafts for boards and panels introducedin the show, reference material for technical staff and casts,
meeting documents, and other items. By introducing electronic
tablets, however, they were able to reduce the amount of paper
used per broadcast by approximately 64%. The tablets also makeit possible to share information like design draft corrections withall staff in real time, greatly increasing work efficiency.

*1 albert Calculator:
A system developed by BAFTA albert for calculating greenhouse gases
emitted during program production.
*2 A calculation of the Scope 3 (indirect) emissions of advertisements basedon the GHG Protocol, an international standard for calculating andreporting greenhouse gas (GHG) emissions.

Paperless program production at“news23” and “Hiruobi”

Effects of going paperless (rough estimate)“news23”

1,729

Before(sheets)“Hiruobi”

416,000

down

64%
down

829

150,000

52.1%

After

BeforeAfter91

Biodiversity

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Biodiversity Initiatives

Sharing the Unique Messages of a Content Company in Japan and Abroad“Crazy Journey”“Crazy Journey” is a program thatshows the reality of the world byaccompanying people who travel
around the world with unique viewpoints or interests. The program hascovered a variety of scenes to date, including danger zones andethnic minorities, and many creatures have appeared along theway.
During the episode with safari guide Yuka Ota, the show
went along on a patrol with rangers combating poaching in the
African savanna. In the episode with ant master Taku Shimada,while searching for rare ants in the forests of Australia, they
discovered animals, such as cassowaries and a possible new
species of animal, that are not naturally encountered in Japan.
The program aims to provide opportunities for people tolearn about biodiversity through themes such as co-existence
between humans and wild animals, and showing the appeal of
creatures that cannot be seen in Japan.

“Amazing Animals/WAKUWAKU”
YouTube channel
The “Amazing Animals/WAKUWAKU”
YouTube channel uses TBS’s best commercial wildlife footage to introduce
viewers to the mysteries of living things,
the vitality of wild animals, the links between nature, animals,
human beings and all kinds of life, and the importance of biodiversity. The channel has grown into one of Japan’s premier animal YouTube channels and currently has 488,000 subscribers anda total of over 220 million views (as of August 1, 2023). Views of
the English version targeting overseas audiences are also growing steadily, mainly in the USA and India.
Last year, the channel ventured out of the world of internet
and participated in the GTF Green Challenge Day 2022. In cooperation with the Ministry of the Environment, the organizerof the event, we held a talk event on the issue of invasive alien
species, titled “All Life is Connected! Dangerous Tokyo Animals
2022.”
What we at TBS are good at is “communicating.” Throughstreaming, broadcasting, events, and other means, we try to
inform as many people as possible in Japan and beyond about
nature, the environment,
and biodiversity.

Akasaka Honeybee Project
The TBS Group launched the Honeybee Project in 2011
and keeps honeybees inside the TBS Broadcast Center.
Through activities such as beekeeping with the residentsof Akasaka, and hands-on lessons for children, we givethe entire community opportunities to think aboutbiodiversity and living in harmony with nature.
In FY2022, we cooperated with the local government
and elementary schools to hold lessons about honeybees.
We also planted honey plants that bees and other insects
like. TBS’s bees fly to local flowers to collect nectar, help
with pollination, and help bear fruit. The honey collected
is offered free of charge to nearby restaurants and the
Akasaka Festival for use in drinks and dishes, and tastings
are held at honeybee classes.

92

M a na g eme nt St r ucture & Governan ce“Swan Lake”©Hidemi Seto

Message from the
President

Long-Term Vision andMedium-Term Management Plan

01
04

Creating globally
beloved originalcontent
Content Innovation

Strategies for
Business

Value Creation Story

Corporate Governance& Technology

02
05

Fulfilling oursocial mission as
media group
Human Capitalaand
The Global
Human Rights

Delivering wonderful“moments” to all the
lives on earth

Our Fundamental Approach to Corporate
GovernanceManagement
Structure

Delivering wonderful“moments” to everyone
we work with

Corporate Governance Structure (as of June 29, 2023)

Appoints/
dismisses

Reports to

Nomination Advisory
Committee
Consults

Compensation
Advisory Committee

Consults

Advises

Reports toReports to

Appoints/
dismisses

Appoints/
dismisses

Advises

Board of Corporate Auditors

Audits business execution ofBoard of Directors
Appoints/supervises

Reports toInternal Audit Office
Reports to
Monitors

TBS Hotline
Inspects

Makes
reports toBusiness divisions of TBS and group companies

Reports to

Supervises

Does internal audit/
internal control assessment ofAudits business/accounting ofSupervises

Promotes
establishment ofinternal controls toGeneral Risk Management Committee(Group)Directs

Corporate Activities Committee (Group)

Reports toGroup Executive
Committee

Reports toBoard of Standing
Directors

Reports toReports toReports to

Accounting Auditor

Reports to

Works with

Works with

President
Appoints

Supervises

TBS employs a structure of governance by a Board of Directors
and a Board of Corporate Auditors. Meetings of the Board of
Directors are held on a monthly basis as a general rule, and atthese meetings, decisions regarding the execution of important
TBS business are made and reports on important matters are given. TBS has also established a Board of Standing Directors as aconsultative body to assist with decision making by the president
and the execution of business, and it conducts deliberations concerning such matters as administrative policy for general business management, including management of the Group. The
Board of Standing Directors is currently composed of standing
directors and executive officers, and meets once a week as a
general rule. And for the purpose of specialist deliberations, theBoard of Standing Directors also has subcommittees that handle
matters such as budgets and investment and lending.

Corporate Data

Strengthening
governance as a
responsible company

Directs

Corporate Organization

03
06

General Meeting of Shareholders

Works
with

In addition to bearing the responsibility of contributing to thedevelopment of the market economy as a listed company, TBSalso has a high public role as a certified broadcasting holding
company whose affiliates are broadcasters entrusted with theprecious and finite resource of airwaves that form part of theradio spectrum. The fundamental approach of TBS to corporate
governance is to improve the Group’s management efficiency
and maximize corporate value while fulfilling our social responsibility as a certified broadcasting holding company.

Environment

Innovating work throughthe development andutilizationof technology
PerformanceandAudits internal controls of
Audits accounts ofRatio of Independent Outside
Directors and Auditors
Composition of Board of
Directors

40%

Composition of Board of
Corporate Auditors

60%
94

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Board of Directors and Auditors

Board of Directors Skill Matrix
The skill set required for the Board of Directors of TBS Holdings and the skills ofeach individual director are as set out in the table below.
Under the TBS Group VISION 2030 (hereinafter, “VISION 2030”) that TBS has
defined, we are currently working to transform TBS from a media group to acontent group.
This is a breakdown
Aud.
Aud.
5
4
2
1
3
6
of the skills required toachieve such aspects of
VISION 2030 as enhanced
broadcast value, implementation of the EDGE
expansion strategy, solutions for materialities (key
9
7
8
10
Aud.
Aud.
Aud.
issues), and improved corporate value through ESG
Aud. = Auditor →p.97
management.

Present Position at TBS HOLDINGS, INC.

Attendance at Board of Nomination Advisory
Directors Meetings
Committee

No.

Name

1

Shinji Takeda

Chairman & Board Director

13/13 (100%)

2

Takashi Sasaki

President & Representative Director

13/13 (100%)3

Toshiaki Kawai

Representative Director

13/13 (100%)

4

Tatsuo Sugai

Board Director

13/13 (100%)

5

Shoichi Watanabe

Board Director

13/13 (100%)

6

Masaya Chisaki

Board Director

13/13 (100%)

7

Hitoshi Kashiwaki

Outside Director

Independent

Outside13/13 (100%)

8

Yosuke Yagi

Outside Director

Independent

Outside13/13 (100%)

9

Makoto Haruta

Outside Director

Independent

Outside13/13 (100%)

10

Natsuko Takei

Outside Director

Independent

Outside—○○Compensation
Advisory Committee

Corporate
Management

○

○

○

○

○

○

○

◎
○
○

◎: Chair

○

○

◎

○

○

○

○

○

Finance andAccounting

ESG

Legal andCompliance

Human Resources
Management

Media and Content

○

○

○
○

○
○

○

EDGE Growth Strategies
Digital Domain

○

○

○

○

○

○
○

Competitive Strategy○○

Global Domain

Experience Domain

○

○
○

○

○

○
○

○

95

Board of Directors and Auditors

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Board of Directors and Auditors (as of June 29, 2023)■ Directors

Shinji Takeda

Takashi Sasaki

Toshiaki Kawai

Tatsuo Sugai

Shoichi Watanabe

Chairman &Board Director

President &Representative Director

Representative
Director

Board Director

Board Director

Chairman & Director, TBS TELEVISION, INC.
Director, MBS Media Holdings, Inc.

President & Representative Director,
TBS TELEVISION, INC.

Executive Vice President & Board Director,
TBS TELEVISION, INC.

Senior Managing Director,
TBS TELEVISION, INC.

Managing Director, TBS TELEVISION, INC.

Appointed

June 2007

June 2015

June 2014

June 2015

June 2018

Shares held

68,151

60,69047,50837,84025,263

Concurrent post

New

Masaya Chisaki

Hitoshi Kashiwaki

Yosuke Yagi

Makoto Haruta

Natsuko Takei

Board Director

Independent Outside
Director

Independent Outside
Director

Independent Outside
Director

Independent Outside
Director

Managing Director, TBS TELEVISION, INC.

Concurrent post

Outside Director, ASICS Corporation

Representative Director, People First, Ltd.

Outside Director, Matsuya Co., Ltd.

Director, ICMG Co., Ltd.

Outside Director, Kewpie Corporation

Chairman & Director, IWNC Inc., Ltd.
Auditor, GE Healthcare Japan Corporation

Representative Director and CEO,
betaCatalyst Inc.
Representative Director & President,
ExaWizards Inc.
Advisor, Money Forward, Inc.
Director, Panasonic Corporation

Director, Sony Institute of Higher Education
External Member of the Board,
Tokyo Metro Co., Ltd.

Appointed

June 2018

June 2018

June 2020

June 2020

June 2023

Shares held

27,756

0

0

0

0

96

Board of Directors and Auditors

Message from Our New
Outside Director

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Natsuko Takei,

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ Corporate Auditors

Independent Outside Director

Just as society was navigating a major bend in theroad presented by a range of technological innovations such as AI, quantum computing, and web3.0,
the COVID-19 pandemic and changes in geopoliticalbalance resulted in accelerated change, and we have
now entered an era in which the future of society isdifficult to foresee. It is against this backdrop that I
feel great appeal in the TBS brand promise of “Fromeach moment, a better tomorrow.”
In my previous roles, I have overseen legal affairs, compliance, privacy, trade, and other such global operations. In addition to legal compliance in group company management, I have engaged in dialog withcolleagues around the world to consider how companies should act in
response to the changes in customer behavior, society, and markets thattechnological innovation and changes in geopolitical balance can result
in, what represents opportunity and what represents risk, and what to
do in order to do business in a legally compliant way, or ethically in areas
where the relevant laws have not been put in place, and have taken on a
range of challenges. I also firmly believe that a healthy corporate culture
provides a rich and fertile foundation for everyone involved in corporate
activities to work with vibrancy as they strive to create and innovate, andI have always worked to help create such a culture.
With this experience, I intend to contribute to the TBS Group as itgoes about creating “a better tomorrow,” and to give my all to help
increase the corporate value of the TBS Group.
I think that content has the power to bring shared enjoyment topeople and to connect people. With content at the center of its growthstrategy, I am very much looking forward to heading into a new era with
the TBS Group.

Tomohiko
NishinoTetsuyaIchikawa

Teisuke
Kitayama

Standing Statutory
AuditorStanding Statutory
AuditorOutside Auditor
Advisor, Sumitomo Mitsui Banking
Corporation

Concurrent
post

Concurrent
post

Mie
Fujimoto

Somitsu
Takehara

Outside Auditor

Outside Auditor

LawyerCertified Public Accountant

Partner (lawyer) TMI Associates

Director & Chairman, ZECOO Partners Inc.

■ Executive Officers
Executive Officers

Ryujiro Abe

Yasushi Gemba

Jin Yokoi

Shigetoshi Ida

Mei Takeuchi

Susumu Okuda

Yuji Yoshida(Oversees the TBS Group’s anime
business)
New Yukari Aoki
(Oversees TBS Group design)
New

TBS Group Senior Executive Officers

Project Executive Officers

Ken Sonoda

Kunio Tokui

Hideki Isano

Kazumo Inoue

TBS Group Executive Officers

Keishi Takahashi

Shintaro Hayashi

Jun Yasuda

97Corporate Governance

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Strengthening of the Supervisory Function of the Board of Directors

Initiatives to Strengthen the Supervisory Functionof the Board of Directors
In order to ensure promptness, transparency, and fairness in decision making, TBS amended the number of members of its Board of Directors from 17
to nine in June 2020, and the ratio of independent outside directors sitting
on the Board of Directors is set at a minimum of one third. Furthermore, inorder to further strengthen the supervisory function of the Board of Directors, an extra outside director was added in June 2023 to bring the numberof members to 10.
For the Nomination and Compensation Advisory Committees, TBSchanged and strengthened the composition in January 2021 so that inaddition to both committees being chaired by outside directors, outside
directors would also constitute half of the members of the committees. The
composition was further amended in June 2023 so that outside directors
constitute a majority of committee members.
TBS will improve the effectiveness of its corporate governance going
forward by clearly setting out the roles of its supervisory and executivefunctions.

■ Nomination Advisory Committee

TBS has established a Nomination Advisory Committee to deliberate the appointment and dismissal of directors and the president and representative
director. As of June 2023, outside directors constitute a majority of the Committee’s members and it is also chaired by an outside director, and this ensures
the independence and objectivity of the Committee.
The Committee discusses the succession plan for the president and representative director and the mentoring of candidates for succession, and reports
the results to the Board of Directors within an appropriate scope.
The Committee met four times in FY2022 (having met three times in
FY2021), and all members attended all meetings.
Main Content of Deliberations■ Directorial candidates to be suggested to the General Meeting of Shareholders and candidates for executive officers to be appointed at themeeting of the Board of Directors after the general meeting■ The skill set required for the Board of Directors, and the skills of eachdirectorial candidate■ Progress status of the succession plan for the president and representative director■ The status of diversity initiatives (mainly the promotion of women tohigher positions)

Diversity in the Board of Directors
The four outside directors all have experience in corporate management at
a company engaged in business or as the head of a division, and excel in thefields of finance and accounting, organizational human resources, and legal affairs and compliance. Having such persons who possess a wealth of experienceand knowledge ensures the Board of Directors has diversity and is multifacetedin nature.
And having appointed one female director and one female executive
officer in June 2023, TBS is working toward even greater diversity in aspects
including the gender, experience, and age of employees. It should be notedthat in accordance with the Japan’s Broadcasting Act, no foreign nationals canbe appointed as directors.

■ Compensation Advisory Committee

TBS has established a Compensation Advisory Committee to deliberate thecompensation structure and level of compensation for directors As of June
2023, outside directors constitute a majority of the Committee’s members andit is also chaired by an outside director, and this ensures the independence andobjectivity of the Committee.
On the basis of policy set by the Board of Directors, the Committee holds
deliberations on the compensation structure and level of compensation for directors from a standpoint of objectivity and fairness, and reports to the Boardof Directors.
The Committee met three times in FY2022 (having met four times in
FY2021), and all members attended all meetings.

Specific Matters Addressed by the Board of Directors

Business
Strategy• Updating of the 2023 Medium-Term Management Plan andimplementation of EDGE strategy• Identification of materialities for the TBS Group• Planning for Akasaka Entertainment City• Investment in companies• Status of VISION 2030 initiatives at group companies• Budget compilation policy and budget formulation• Verification and selling of cross-shareholdings based on capital costs

Governance• General risk management status of the Group• Operational status of the internal reporting system• Assessment of Board of Directors’ effectiveness• Status of dialog with institutional investors (engagement)• Sustainability Committee reports (TCFD, human capital, etc.)• Implementation status of the Corporate Governance Code• Approval of annual/quarterly financial statements, accounting
documentation, etc.

■ TBS Group Executive Officer System

TBS has introduced a group executive officer system for group companies, withthe aim of ensuring agile implementation of business strategy and improved
effectiveness of business execution. In FY2022, the presidents and representative directors of six group companies took up their posts.
The Group Executive Committee is comprised of directors from TBS Holdings, executive officers with responsibility for the Group, and executive officers
from within the Group. It serves as a body for liaising and consulting among
companies in order to complement the business execution of the president of
TBS Holdings, and as a general rule, it meets on a weekly basis. This Committee
has been incorporated as part of the corporate governance system.
TBS Group Corporate Activities Committee

Main Content of Deliberations■A ppraisals for performance-related evaluation and compensation of directors on the basis of performance (consolidated operating income) in
the previous business year
■ Appraisals for qualitative evaluation and compensation of each director■ Total amount of directorial compensation for submission to the Board of
Directors (base compensation/performance-based compensation/stockbased compensation)■ Review of the design of the stock-based compensation system

Role:	To achieve proper and efficient execution of business, and to maintainand increase the corporate value of TBS as a corporate group.
Members:	TBS and TBS Group directors, and outside members
Jurisdiction:	1. Development, evaluation, and improvement of internal controls systems
2. Establishment of corporate ethics
3. Risk management and promotion of proper and effective business
4. Matters concerning information disclosure systems
5. Matters concerning advice to the Board of Directors of each groupcompany98Corporate Governance

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Evaluation of Effectiveness of Board of Directors

In order to obtain a more objective view, since FY2020 we have implemented an evaluation of the effectiveness of the Board of Directors
with the assistance of Japan Board Review Co., Ltd as a third party. The
Board of Directors discussed and evaluated its effectiveness in FY2020
on the basis of a report produced by a third party institution after the
implementation of a survey and personal interviews with each director
and auditor, and in FY2021 and FY2022 after the implementation of asurvey with each director and auditor.
Effectiveness Evaluation Method (Self-Evaluation)
Survey (and personal interview)
with each director and auditor
Conducted with third party assistance

Report produced by third party
Debate/evaluation by Board of Directors

Recognized Issues and Approach to Tackling ThemManagement Issues

Overview of FY2022 Evaluation
1. Size and Composition of the Board of Directors
The size and composition of the Board of Directors received an evenbetter evaluation than in the previous year, and it was deemed to belargely appropriate. Ensuring diversity that includes female directors is
recognized as an issue to be addressed.
2. Operation of the Board of Directors
Under the appropriate administration of proceedings by the chair of
the Board of Directors, each director and auditor expresses their opinion in a frank manner, and appropriate decision making is performedon the basis of timely and appropriate information for corporate management. The most important management issue is the achievementof the TBS Group VISION 2030, and it was recognized that in addition
to fully leveraging its role and functions and continuously undertaking
lively discussions toward the achievement of the TBS Group 2023 Medium-Term Management Plan, the Board of Directors performs appropriate supervision.
Board of Directors Role/Operation

3. State of the Nomination Advisory Committee and Compensation
Advisory Committee
The Nomination Advisory Committee and the Compensation Advisory
Committee are of a size and composition that make them dependable,
and it is considered that communication between both advisory committees and the Board of Directors is sufficient. However, while it isdeemed that both advisory committees undertake open and lively discussions, it is also recognized that there are still issues to be addressedin terms of the provision of information for holding fully rounded discussions.
4. Relations with Investors and Shareholders
While voices from the capital market are appropriately reported to theBoard of Directors and this information is used in discussions by the
Board of Directors, this needs to continue in order for long-term competitive superiority to be fully conveyed to the capital market.

Composition of Board of Directors

Nomination and Compensation
Advisory Committee

Support for Outside Directors

Initiatives
after previous
evaluation(FY2021)• For important management issues and agenda items, ensure a full discussion spanning several sessions is • Reports on implementation and progress of TBS Group VISION 2030 • Ensuring diversity and board suc- • Regularly report content deliberated • Holding of social gatherings for outside
held by providing prior explanations and raising them as matters for deliberation.
initiatives by group companies to be given. Major investments to be raised cession is deliberated mainly by the by advisory committees to the Board directors and auditors.
• Define a philosophy for human capital management, and establish a Human Resource Development as matters for deliberation in multiple agenda items to ensure sufficient Nomination Advisory Committee.
of Directors, and share information.
Policy and an Internal Environment Improvement Policy. A discussion on specific human resources time for consideration.
strategy continues to be an issue to be addressed.
• Hold discussions with the objectives of increasing corporate value by• Proactive explanations to be continued through IR briefings and engagement with institutional investors. means such as achieving the TBS Group VISION 2030, and increasing
share price as a result.

Issuesafter thisevaluation(FY2022)• While the seeds of growth have been sown toward the achievement of the TBS Group VISION 2030, a • Deeper discussion required regarding monitoring of progress of TBS Group • In order to ensure effectiveness in • The Nomination Advisory Committee • Meetings and other gatherings comprised
specific consideration of measures to increase corporate value is required.
VISION 2030 and review of the business portfolio for achievement of important strategic decision making and Compensation Advisory Com- of outside directors and auditors held to• Specific considerations concerning human resources strategy, including ensuring diversity, grouped Phase 2, Development and Growth.
for achievement of the TBS Group mittee undertake lively discussions, provide careful prior explanations and othtogether as human capital management, and have just got underway.
• Enhanced administration of group management and follow up by the VISION 2030 and management su- but the prior sharing of information er information, and this has had a degree• While information dissemination to shareholders and investors has been enhanced, this needs to be Board of Directors is required to achieve a drastic increase in corporate pervision, consideration needs to be required for deliberations is an issue of effect on enhancing deliberations by thegiven to the best form for the Board that needs to be addressed.
value.
Board of Directors. Support to be continued
continued to obtain the full confidence of investors.
of Directors and the skills demanded
to nurture a deeper understanding amongof directors.
outside directors.

Approachgoing
forward• Regarding business strategy taking capital cost and share price into account in order to increase corporate • Decisive decision making for “sowing seeds” in the final year of Phase 1 of • Share the content of discussions by • Enhancement of information sharing • Continued provision of opportunities forvalue, analyze the current situation, create a plan, and implement and monitor the progress of initiatives. the TBS Group VISION 2030, and strengthened management supervision the Nomination Advisory Committee, concerning board succession, includ- information sharing among outside direc• Human capital strategy required to achieve the 2023 Medium-Term Management Plan and create the function for selection, concentration, and other activities ahead of Phase such as board succession and the ing the CEO (president), and sharing tors, while also exploring opportunities for2026 Medium-Term Management Plan to be discussed and reviewed by the Board of Directors.
2, Development and Growth.
skills demanded of directors, with the with the Board of Directors. Contin- furthering understanding of the situation• Further strengthen information dissemination on the EDGE strategy and other long-term growth • Accurate perception of changes in the global market, risk, and other Board of Directors, bring depth to dis- ued information sharing by means of in-house, such as business execution.
strategies, and work to deepen business strategy and ensure latent growth potential is understood by such things, strengthening of risk management at group companies, and cussions, and further ensure diversity. regular reports of deliberation conthe market.
enhanced progress checking and follow up of the TBS Group VISION 2030.
tent to the Board of Directors.

99

Corporate Governance

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Officers’ Compensation

Policies and Procedures Concerning Officers’
Compensation
Through a resolution of the General Meeting of Shareholders
held on June 27, 2014, TBS set the maximum total annual compensation for all directors and auditors to a maximum of ¥900
million (excluding the employee salary paid to directors who arealso employees) and ¥100 million, respectively.
A restricted stock-based compensation scheme was introduced at a General Meeting of Shareholders held on June 27,
2019, and it was determined that for directors other than outside directors, the maximum total compensation of the aforementioned amount for grants of restricted stock shall not exceed¥180 million annually.

Basic Policy for Officers’ Compensation, etc.
■ Compensation shall be the foundation for recruiting andmaintaining highly-talented human resources to achieve
increased corporate value and accomplish our mission of
public service, and for stable management.
■ The compensation system shall have a focus on the shareholder's perspective, and shall build value sharing withshareholders.

■ The process of determining compensation shall be objective and highly transparent, and based on deliberations by
the Compensation Advisory Committee.

A basic policy for compensation of directors has been established on the basis of reports from the Compensation Advisory
Committee, which advises the Board of Directors. Aspects of directorial compensation including the system, level, and composition are deliberated by the Compensation Advisory Committee
on the basis of consultations from the Board of Directors and inconsideration of the basic policy for compensation, and are set
based on the response of the Committee.
Compensation for directors is composed of base compensation, performance-based compensation, and stock-based
compensation. However, outside directors receive only basecompensation as they are independent of business execution.
Compensation for auditors is less than the maximum total annual compensation and is determined through discussions amongauditors.

At the General Meeting of Shareholders and the meeting of
the Board of Directors held on June 29, 2023, a scheme for the
granting of restricted stock (RS) in TBS as share-based compensation to the directors and executive officers of TBS subsidiaries inthe same way as TBS directors and executive officers was introduced with the objective of further heightening desire to makea contribution to the sustainable growth of the corporate valueof the TBS Group.
And with the objective of making clear the link with TBS
share prices and providing an incentive, a share-based compensation scheme has been introduced for directors of TBS subsidiaries that grants shares in TBS using a trust.

Composition of Directorial Compensation
Compensation TypeForm of Payment

Overview

Base Compensation

Fixed, CashMonthly Compensation (paid every month)
Determined for each director in consideration of factors including position, strategic division overseen,
and changes in the business environment

Variable, Cash

Annual Incentive Compensation
With the objective of providing an incentive to achieve results in a given fiscal year, qualitative evaluations
examine (i) the degree of achievement of numerical targets for consolidated operating income, and (ii)the status of achievement in the strategic division that the relevant director is responsible for

Variable, Shares

Long-Term Incentive Compensation
With the objective of providing an incentive to increase shareholder value over the medium-to-longterm and sharing value with shareholders, restricted stock-based compensation (RS) is provided on anannual basis

Performance-Based
Compensation

Stock-Based
Compensation100

Corporate Governance

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Cross-Shareholdings and Anti-Takeover Policy

Cross-Shareholdings
TBS is aware that, in order to maximize the common interests ofshareholders, it is incumbent upon us to both strive for improved
corporate value and to fulfill our high public role as a certified
broadcasting holding company. From these perspectives, we holdshares in corporations that, upon general consideration of factors
such as cooperative relations, transactions, and business partnerships, we determine to be a necessary part of our business strategy.
TBS sells off cross-shareholdings where we determine, inlight of the conditions at the end of the most recent business
year, that it is not meaningful to hold such shares. For individualcross-shareholdings, the Board of Directors gives general consideration each year to factors that include the objectives, relevance,and economic rationality of holding the shares, and examines
whether continuing to hold the shares is the best choice or not.
With regards to economic rationality, the benefits and risks ofcross-shareholdings are examined in reference to TBS capital costs.
In terms of the exercise of voting rights, the TBS scrutinizes the content of agenda items, and exercises these rights judiciously from the perspective of whether or not such action willcontribute to medium-to-long-term improvement of corporate
value, while also respecting the management policies of the companies in which we invest. However, in situations such as where
there is reason to believe that the corporate value of TBS may
be harmed or where serious violations of the law are seen, TBS
will, where necessary, confirm the intent of agenda items andtake any other such action to fully engage with the companies inwhich we invest before carefully reaching a determination.
¥116.1 billion in sales of stock since FY2018
FY2021 sales of stock: ¥20.1 billion (eight brands, all or in part)
FY2022 sales of stock: ¥24.1 billion (six brands, all or in part)

Overview of Policy for Responding to Takeover
Attempts (Anti-takeover Policy)
A TBS Board of Directors meeting held on February 28, 2007
formulated a Policy for Responding to Takeover Attempts. At
the Ordinary General Meeting of Shareholders held on June 28,
2007, this policy and its continued application were approved bya majority of shareholders who were entitled to exercise theirvoting rights.
This policy complies with Japan’s Companies Act and othercorporate laws and regulations, governmental guidelines issued
by the Ministry of Economy, Trade and Industry and the Ministryof Justice, and rules and regulations issued by the Tokyo Stock
Exchange, and was put in place after thorough consideration of
the impact on shareholders’ rights and the exercising of theserights, and the impact of TBS shares on the market. As a listedcompany, the TBS Group bears the responsibility to contributeto the development of the market economy, and in addition tothis, we believe it is necessary to maintain both our public nature
as a broadcasting station entrusted with the precious and finite
resource of airwaves that form part of the radio spectrum, andour autonomy, diversity, and independence in order to uphold
our impartiality as a news organization.
An important feature of our anti-takeover policy is thatas 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 measures in
our anti-takeover policy (measures to counter takeover bids),
and the decision as to whether or not to implement such measures shall be left up to the shareholders. The objectives of thisare to enable the securing of sufficient information and time forour shareholders to reach an appropriate decision, and for the
TBS Group management team to carry out an evaluation, inves-tigation, negotiation, and other such activities, including making alternative proposals, regarding matters such as proposals
pertaining to the large-scale takeover action of the purchasinggroup or other such issues.
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, without waiting for the Ordinary General Meeting of Shareholders
to be convened, the countermeasures shall not be implemented.
This serves as a means to prevent these measures from being
used for management’s own protection.
In May 2021, we enacted the TBS Group VISION 2030 that
focuses on a decade in the future, as well as the TBS Group Medium-Term Management Plan 2023 that aims to achieve VISION
2030, and we are now undertaking a bold reform of management with the goal of generating medium-to-long-term growth.
We believe that a certain period of time will be required before
these bear fruit and the results manifest themselves as an appropriate share price, and so in this sense, it is necessary that we
maintain the present policy of response. In October 2021, we
held a dialog between our outside directors and our outside auditors concerning the retention of our present policy of response.
Following these processes, we resolved to maintain and update the present policy of response at the May 2022 meeting of
the Board of Directors.
Details of the Policy for Responding to Takeover Attempts
are available on the TBS website.
Policy for Responding to Takeover Attempts(Basic Policy on the Stance of Persons who Control Decisions on
Corporate Financial Affairs and Business)

https://www.tbsholdings.co.jp/about/governance/pdf/decision.
pdf?20230629

101

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Enhancement of Sustainability Promotion

Establishment of a Sustainability Committee and Creation of a Sustainability Policy
In order to further enhance and accelerate group-wide efforts toward the realization of a sustainable society, on October 1, 2021,
TBS Holdings established the Sustainability Committee, chairedby the president and representative director and vice-chaired by
the director with responsibility for ESG strategy. In November ofthe same year, the Committee formulated a sustainability policy,
and this was approved by the Board of Directors.

The Sustainability Committee examines and implements specific measures for issues related to ESG and the SDGs, such as
climate change measures, human rights, labor, the environment,
and governance.
In addition to the existing working groups, each looking
into one of the three areas of climate change, work style, andwellness, a Human Capital Working Group was established in
November 2022.

Board of Directors

TBS Holdings has worked, mainly through the Wellness
Working Group, to build a safe and rewarding workplace environment that enables the exercise of creativity, and along with
TBS Television, was certified by Japan’s Ministry of Economy,
Trade and Industry as a Health and Productivity Enterprise in
2023 (in the large corporation category).
In addition, the Human Capital Working Group has workedon the creation of drafts for TBS Group Human Capital Management and a TBS Group Human Rights Policy that codifies theprevious Human Resource Development Policy and Internal Environment Improvement Policy.

Sustainability Policy
As a media group with a social mission, the TBS Group will build broad partnerships with all stakeholders in order to help create a society of contentment
and sustainability.

Sustainability Committee
Chair:

Takashi Sasaki, President andRepresentative Director

Vice Chair: Masaya Chisaki, Director(in charge of the ESG strategy)
Committee members:
TBS Holdings directors andexecutive officers

Sustainability Committee
Secretariat
Sustainability Transformation(SX) Center
ESG/SDG Planning andManagement Department• We will work on resolving environmental and social issues through the fair
and accurate dissemination of information and the provision of content andservices.
• We will respect human rights and diverse values, and contribute to the realization of a society full of hope.
• We will comply with laws and social norms, and undertake our corporate
activities in a fair and transparent manner.
• We will accommodate a wide range of working styles, and create a safe andrewarding workplace in which employees can exercise their creativity.

Contribution to SDG achievement

Climate Change
Working Group

WorkstyleWorking Group

Wellness
Working Group

Human Capital
Working Group

Aiming for achievement of the SDGs by 2030, the TBS Group will form thestarting point of influencing society through the provision of a wide range ofcontent and services, and, through broad-based partnerships, contribute to therealization of a society full of hope in which no one is left behind.

102Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Compliance

Compliance System
As a core aspect of promoting compliance within the TBS Group,a Compliance Office has been established under the Compliance
Division to provide employees and staff with guidance on how toprevent compliance problems such as harassment and violationsof laws and regulations, internal rules, and ethics. We have put
in place a system where, in the event of a compliance problem,
we work with the department in charge and with the Division of
Human Resources and Labor to promptly investigate the problem, seeking advice from outside lawyers if necessary, and takemeasures as appropriate, including internal disciplinary action,
investigation of the causes, and formulation of measures to prevent recurrence.

Internal Reporting Systems
The TBS Hotline was established with the goal of eliminating
any fraudulent behavior within the TBS Group. This can be used
not only by employees and staff of the TBS Group, but also former employees and business partners to report any wrongdoingthat they may become aware of. Whistleblower confidentiality isstrictly maintained, and the subjecting of whistleblowers to any
kind of disadvantageous treatment whatsoever is prohibited.
Points of contact are available internally and also at an externallawyer’s office.
Furthermore, in addition to the TBS Hotline, a separate Harassment Desk has been established in HR departments, and can
respond to inquiries at any time regarding sexual harassment andpower harassment. If instances of harassment are discovered, action will be taken in accordance with employment regulations.

Program Improvement Initiatives
TBS strives to improve programs while applying the TBS Broadcasting Standards, which TBS defined on its own initiative
when the company first went on air in 1951 and revises as isrequired, and the broadcasting standards of the Japan Commercial Broadcasters Association.
We have formulated a plan called the TBS Television Citizens’ Protection Operating Plan with the goal of protecting
citizens through the dissemination of information on warnings
and the declaration and cancellation of evacuation orders in
the event of armed aggression against Japan or in other suchsituations, and ensure soundness in our program production
with our Guidelines for the Rejection of Antisocial Forces.
Council of Program Practice that we are obliged to establish by the Broadcasting Act makes reports and gives opinions
in response to consultations from TBS, and TBS then takes thenecessary steps in respect thereof.
We also air TBS Review, an examination program thatserves as a point of contact between TBS and our viewers,
twice monthly in the morning of the second and fourth Sunday of the month. This program takes on and examines thewide range of issues facing TBS and broadcasting as a whole.

In terms of transactions for the outsourcing of program
production from TBS to external production companies, wehave defined Independent Standards Pertaining to Program
Production Outsourcing Transactions and ensure that we always treat such companies as equal partners in upholding
broadcast culture. Our fundamental approach is one of maintaining and cultivating close, mutually cooperative relations
and proactively undertaking transactions that are fair andtransparent.
Given the seriousness of the public nature and social
impact of the broadcasting business, the Japan Commercial
Broadcasters Association and the Japan Broadcasting Corporation (NHK) launched the Broadcasting Ethics and Program
Improvement Organization (BPO) with the objective of contributing to accurate broadcasts and improved broadcasting
ethics, and the BPO responds to complaints about broadcasts
and problems in terms of broadcasting ethics from an autonomous, independent third-party stance to protect the basic human rights of viewers while ensuring freedom of speech andexpression.

TBS Broadcasting Standards (revised as required)https://www.tbsholdings.co.jp/tbstv/regulation/regulation.html

TBS Televison Citizens’ Protection Operating Plan

https://www.tbsholdings.co.jp/tbstv/regulation/protection.html

Guidelines for the Rejection of Antisocial Forces

https://www.tbsholdings.co.jp/tbstv/regulation/antisocial.html

TBS Review Examination Program

https://www.tbsholdings.co.jp/tbstv/regulation/tbsreview.html

Independent Standards Pertaining to Program
Production Outsourcing Transactions

https://www.tbsholdings.co.jp/tbstv/regulation/production.html

103

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

TBS Group Code of Conduct

Providing Content, Information,and Services that Enrich the Mind

Respecting Diverse Values and Striving to
Make a Positive Contribution to Society

Aiming to Realize Our Philosophy
with an Ethos of Freedom- Our pledge to our customers -- Our pledge to society -- Our pledge to our colleagues -■ A great time for every individual

We will continually strive to be inventive and go beyond
time and place to provide high-quality, captivating content, events, products, and services that enrich the mind.

■ Fair, just, and accurate information dissemination■ Respect for human rights and diversity

We uphold human rights, respect diverse values, and reject all forms of discrimination and prejudice.

■ Social contribution and environmental
preservation

We will thoroughly respect freedom of expression, strive
to disseminate fair, just, and accurate information, andfulfill our mission as a media organization.

We value our bonds with society and harmony with nature, and will work toward the achievement of a sustainable society and a better environment.

■ Respect for the views of our viewers, listeners,
and customers■ Legal compliance

We will listen closely to the views of our viewers, listeners,
and customers, and continually work to ensure as many
people as possible can find value in the time they spend
on consuming our content.

TBS Group Anti-Bribery and Corruption Policy

As a member of a media group, we shall have a strong
sense of ethics, uphold laws and social norms, respect allfaiths, and conduct our business with fairness and transparency.

■ Development of outstanding talent

We will develop outstanding talent with rich sensibilities
and the capacity to help build the future. While accommodating diverse working styles, we will continue totake on challenges with a focus on the future and on theworld.

■ Building free-spirited workplaces

We will work to build workplaces in which people accept
each other and value freedom, and where each and every
individual can leverage their creativity to the maximum
possible extent.

■ As a group member

With an awareness of our status as a member of the TBS
Group and toward the realization of our corporate philosophy, we will seek to work with all of our colleagues tobe a media group that is second to none.
April 1, 2020

The TBS Group has always worked to prevent acts of bribery and corruption in business activities through the TBS Group Code of Conduct and TBS Group Conduct Standards. But on the basis of an awareness that
corruption presents a major obstacle to the achievement of a sustainable society and with a further heightened sense of ethics and even stricter standards, we defined the TBS Group Anti-Bribery and Corruption
Policy in March 2023 to provide a set of fundamental points that must be adhered to and to ensure a thorough implementation of our policy of zero tolerance for bribery or any other acts of corruption.
TBS Group Anti-Bribery and Corruption Policy
https://www.tbs.co.jp/TBS_sustainability/pdf/anti-bribery.pdf

104

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Information Security and Protection of Personal Information

One key pillar of our EDGE expansion strategy is an expansion
into the digital field through enhanced content streaming to adiverse range of devices and the development of digital content.
With advances in data-driven content streaming utilizing user
data and content production utilizing digital technologies comean increased risk of cyberattacks and personal information
leaks. In response to these heightened risks, TBS is undertaking
to strengthen its structure for information security and theprotection of personal information.

Information Security
As cyberattacks become increasingly advanced and sophisticated,cyber security has become an extremely important element ofmodern broadcasting infrastructure. TBS is a member of the
ICT Information Sharing And Analysis Center Japan (ICT-ISAC),
a general incorporated association whose members include
communications companies and broadcasters, and strives toensure cyber security in broadcasting infrastructure in accordancewith ICT-ISAC guidelines.
As an independent initiative, TBS founded TBS CSIRT, anorganization dedicated to security, which has enacted a range of
security measures.

Protection of Personal Information
With the Revised Act on the Protection of Personal Information
taking effect in Japan in April 2022 and an ever-increasingawareness of rights regarding personal information, TBS is
working to enhance the way it manages personal information,from its pre-existing broadcasting business-centric management
structure to dealing with legal restrictions concerning privacy
protections online, in order to achieve a balance between theprotection and use of personal information and to respond torisks associated with increased data flows between Japan and therest of the world.
As part of these efforts, we have overhauled our management
structure based on a Personal Information Management
Committee and newly appointed a Chief Privacy Officer (CPO)
as the director with responsibility for privacy. We have alsoestablished an internal control structure and established a
Personal Information Management Secretariat as a standingorganization with responsibility for practical business operations.
Furthermore, we have consolidated the handling rules fromeach of the primary companies of the TBS Group and enacted
Personal Information Handling Rules for the Group as a whole.
By establishing a structure that allows appropriate personal
information management on the basis of uniform standards
for the entire Group, we will strive for proper protection in ourhandling of personal information.

Personal Information Protection Management Structure
President, TBS HOLDINGS, INC.
CPO
(Chief Privacy Officer and Director withresponsibility for Holdings Legal Affairs)

Chair of Personal Information Management Committee: CPO
Vice Chair: Head of Holdings Compliance Division
Head of the General Affairs Division

Responsible Organization
Compliance Division/Personal Information
Management Secretariat

Responsible Group
Organization
Holdings TBS Group Corporate
Development Division
Group Risk Management Office

Division/Office
Managers at
TBS Holdings

Division/Office
Managers at
TBS Television

Managers atgroup companies

105Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Group Internal Controls and Risk Management

Risk Management Structure

General Risk Management Structure

In order to construct and ensure the functioning of an internal
control structure within the TBS Group, the TBS Group Corporate
Activities Committee chaired by the president has been put inplace to achieve appropriate and efficient business execution andto maintain and increase corporate value as a corporate group.
The Committee is comprised of directors from TBS Holdings andthe Group as well as outside committee members (lawyers), andis responsible for the following matters.

Board of Directors

TBS Group Corporate Activities Committee

TBS Group General Risk Management Committee

TBS Group
General Risk Management
Committee Secretariat(Compliance Division)

1. D evelopment, evaluation, and improvement of the internal
control structure
2. E stablishment of corporate ethics
3. R isk management and promotion of proper and effective
business
4. M
 atters concerning information disclosure systems
5. M
 atters concerning advice to the Board of Directors ofeach group company

Specific techniques for risk management are overseen andpromoted by the TBS Group General Risk Management Committee, which was established as a subcommittee overseen by the
TBS Group Corporate Activities Committee. The General Risk
Management Committee meets, in principle, twice a year in April
and November, and receives reports for the relevant period concerning the state of risk management.

TBS Holdings

TBS Television

TBS Group

Head of Risk Management
Deputy Head of Risk Management
Risk Management Supervisor

Head of Risk Management
Deputy Head of Risk Management
Risk Management Supervisor

Head of Risk Management
Deputy Head of Risk Management
Head of Risk Management

Specific Techniques for Risk Management
The Committee works to gain an understanding of individual
potential risks reported from TBS Holdings and group companies,
and aggregates these risks based upon their degree of impact
and the frequency with which they materialize. As well asworking to visualize risks, if a risk materializes, the Committee

works to control the risk by analyzing why it happened andputting in place improvement measures within each department
to prevent its recurrence. Through the steady and iterative
implementation of these efforts, the Group as a whole fully
addresses these risks, and aims to become an organization thatis trusted by customers, stakeholders, society, and its employees.

106Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Main Risks (Included in Securities Report) and Responses■ Main Risks (Included in Securities Report)
Risks for the Media and Content Business■ Dependence on advertising income from terrestrial
television broadcasting and domestic economic fluctuations
Revenue from terrestrial television broadcasting, which makes up asignificant proportion of TBS Group sales, is closely linked to advertiser performance and the psychology of the consumers who buy fromadvertisers. FY2022 also saw a year-on-year fall in commercial placements on terrestrial television due to factors including a decrease after the heights of the Tokyo Olympics in the previous fiscal year andclients looking to reduce advertising and promotion expenses due toincreased costs resulting from Russia’s invasion of Ukraine and inflation, among other factors.
With the spread of COVID-19 among other triggers, companies
who advertise on television are increasingly shifting away from handling advertising expenses as fixed costs (half-year deals for program
sponsorship), and instead handling them as variable costs (one-off program sponsorship /spot sales). Thus there is a risk that time sales will
perform even more sluggishly than the advertising market as a whole,and this presents the issue of attracting companies to spend money on
this variable cost. And ever since the amount of money spent on internet advertising surpassed terrestrial TV advertising in 2019, the shift ofadvertisers toward digital media has been accelerating.
With factors such as the destabilization of international order by
Russia’s invasion of Ukraine, soaring resource prices, and the collapseof financial institutions for reasons including central banks aroundthe world increasing interest rates, the economic outlook is becoming
opaque at an increasingly rapid pace, and should the advertising market drastically shrink due to future economic developments or othersuch factors, then this would have the potential to impact the businessperformance and financial situation of the TBS Group.

TBS
ActionTerrestrial TV’s strengths are its broad reach and its good cost

Conversely, as demand for content increases and streaming platforms rapidly diversify, investment is accelerating, but it is expectedthat conditions in the streaming market will become more severe, andperformance. We are continuing to review advertising value
through utilization of audience data, and are working on both athere is a risk of sudden changes in the content procurement policy

qualitative (i.e. unit price) improvement and a quantitative (i.e.

sports content is in a rapid upward trend, and competition between
media companies to secure quality content is intensifying.

commercial placement amount) expansion in terms of televisioncommercial placement.
To respond to environmental changes, we are developing
products that include Smart Ad Sales, or SAS, in which the dateand position can be designated for the placement of individualcommercials, allowing more flexible commercial placement. In
addition to this, in order to enable us to attract the variable
costs of our clients, we have also adopted a sales method forflexible time sales that are not bound by the conventional sales
technique of specifying half a year as the contract period.
We are also working to forge new relations with companies
through initiatives including SDGs WEEK, in which we work inunison with corporate partners to nurture, among other things,
social awareness of SDGs.

■ Inter-media competition and content acquisitionof overseas platforms. In addition, the cost of broadcasting rights forTBS
ActionWe provide a free catch-up streaming service on platforms suchas TVer. Due to a merger with U-NEXT, the subscription streaming service Paravi is to be transferred and continued from within U-NEXT. This merger will result in the creation of the largest
streaming platform in Japan, with revenue of more than ¥80billion and in excess of 3.85 million paying subscribers. We will
also continue to provide content to major overseas platforms
such as Netflix. By providing numerous offerings on which themany viewers in this wide variety of outlets can spend time, wewill seek to achieve the ultimate reach while accelerating investment into content itself.

Television and other audio-video propagation media are expected todiversify through things such as the further adoption of online streaming in addition to conventional broadcasting that consists of terrestrial,satellite (BS and CS), and cable, leading to full-scale competition between media companies and an ever more intense scramble over the“disposable time” of viewers.

107

Main Risks (Included in Securities Report)
and Responses

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ Main Risks (Included in Securities Report)■T echnology, systems, and security

Recent technological innovation and changes in consumer demand
have been very rapid, and should supplementary investment over andabove what initial plans call for become necessary, such as when technologies and systems that have been invested in and developed become
obsolete faster than initially forecast, and when either greater revenue
or business process efficiency in line with the amount of investment
cannot be expected, there is a possibility that the TBS Group businessresults and financial position may be affected, with effects including
impairment losses on fixed assets and an increase in depreciation.
And while business systems are being increasingly connected tothe internet or moved into the cloud, the security risk faced by all systems grows with each passing year due to increasingly advanced andsophisticated cyber attacks. This leads to the risk of the discovery of
new threats from ransomware and cutting-edge technology that go
beyond what had been previously imagined.
TBS
ActionWith regards to technological innovation, in addition to working on the further enhancement and strengthening of humanresources through actions such as the recruitment of talent in
the field of ICT and allocation to priority areas, we will encourage further business streamlining in production and administration departments. In terms of security, we have strengthened
our dedicated response team (TBS-CSIRT) and implemented aLifestyle Business Risks

Real Estate and Other Business Risks■C onsumer lifestyle changes and cost structures■R eal estate and the lease market

the soaring cost of logistics and production, and other such impacts,
the lifestyle business is at risk of significant impact from missed earning

Akasaka in Tokyo’s Minato ward, and owns real estate including properties for lease. While the harsh circumstances created by the spread ofopportunities due to factors such as the ongoing suspension of busi-

COVID-19 are easing, the slump in demand for offices is ongoing due

ness at stores and reduced business hours, reduced footfall in stores
resulting from restrictions on movement, the loss of inbound demand,

to working at home having taken root for a certain subset of workers

In addition to shifting consumer preferences and purchasing behavior,and instability and disruption in the supply chain as a result of the
spread of infectious disease and other such situations.

The TBS Group is undertaking real estate development with a focus onamong other factors. In addition, a long-term spike in fuel costs due
to Russia’s invasion of Ukraine may have an impact on the businessperformance and financial situation of the TBS Group.

TBS
ActionTBS
Action

It was initially thought that recovery from the COVID-19 pandemic would take a great deal of time, but many industries haveadapted more swiftly than had been expected. Going forward,
we will work to minimize the impact on business performanceof new outbreaks and other such situations through expanded
online sales from the increased demand resulting from people
staying at home.

There is a trend among consumers of shifting from consumptionof things to consumption of experiences, in which consumers
are finding value in the experiences that can be obtained withthe purchase of goods and services. In light of this phenomenon,
the TBS Group established a Realty Strategy Division in FY2022(this was integrated into the Akasaka Entertainment City Project
Division in July 2023). Instead of the conventional approach ofleaving everything up to a major developer and ultimately only
undertaking management, this division will take the lead andwe will work as a media and entertainment company on unified
development of the vicinity of our properties and thus increasevalue.

range of measures in addition to other actions such as purchasing cybersecurity insurance.

108

Main Risks (Included in Securities Report)
and Responses

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ Main Risks (Included in Securities Report)■ Talent acquisition

The environment in which the content industry finds itself is under-■ Impact of widespread infections, etc.

The economy in Japan in FY2022 saw an ongoing mild recovery led by■ Impact of climate change and disasters, etc.

going continued, rapid change, and as well as the dominant platform
constantly changing, the preferences of consumers are also diversify-

personal consumption due to the fact that pre-emergency measuresand other restrictions on activity were removed with the aim of bal-disaster prevention and damage mitigation in the event of the occurrence or potential occurrence of a disaster. In the event of disasters

ing. It goes without saying that in such circumstances, competition isancing infection prevention and economic activity. However, the TBSsuch as a large-scale disaster resulting from the feared impact of cli-intensifying over the acquisition of the human resources required forthe future growth of the Group, such as specialists in the DX business.

Group continues to be aware of the business risk of large-scale infection outbreaks, and will continue to work to minimize the impact ofmate change, revenue may decrease as a result of factors such as thebroadcasting of commercials being halted due to the broadcasting ofFurthermore, there are increasing concerns over the hemorrhaging of

any outbreaks through thorough infection prevention measures, but

special emergency news programs. In addition to this, in the event of atalent and accumulated skills and knowhow from the TBS Group, andin the event that competition further intensifies, the business perfor-in the event of a new outbreak with an impact that continues for lon-

natural disaster or large-scale disaster, or other such disaster, revenue
may decline markedly due to impacts such as a medium-to-long-term
reduction in advertising revenue and damage to broadcast and othermance and financial situation of the TBS Group may be impacted.

ger or is greater than imagined, this may have an adverse impact on
the TBS Group’s financial situation and business performance.

TBS
ActionTBS
ActionIn FY2022, we defined a new human capital management philosophy and strategy. As major pillars, we incorporated the formation of a portfolio of human resources to develop Original
IP that contributes to society and to enhance creativity, and the

The spread of COVID-19 resulted in changes in the way money isused in the production process through an overhaul in direction
and other such actions. This provided a spur for the eliminationof waste in the conventional practices, and we are in the processof establishing a structure for sustainably holding down costs.
In response to audience size restrictions for stage shows andconcerts, we have established alternative methods for obtaining
revenue, including a live streaming business incorporating ideas
such as ticket pricing depending on the number of cameras andtheir position, and are working to diversify income sources by
providing several products from a single piece of content.

creation of a portfolio of human resources for business in orderto support the EDGE strategy as a strategy for the Human Resource Development Policy. We also put together a strategy for
our Internal Environment Improvement Policy with the aim ofincreasing our talent retention rate through measures such assupport for skill building and promotion of a diverse range ofworking styles.

The Broadcasting Act obliges broadcasters to broadcast content for

facilities, and this may have an impact on the business performanceand financial situation of the TBS Group.

TBS
ActionTBS endorses the TCFD recommendations, and in August 2022,
published its first TCFD report entitled “Information Disclosurefor 2022 in line with the TCFD Recommendations”. This reportcompiled the results of analysis concerning the business risks
and opportunities of climate change in both the 1.5°C and 4°C
scenarios. →p.88 While the enhancement of coverage of disasters incurs costs, we believe that fully meeting the demands ofsociety will increase corporate value, and we will work to provide information across all devices in order to protect lives anddaily life.

109

Pe r fo r man c e a n d Corporate I nform a tion

“From Siberia With Love”©2022 “From Siberia With Love” Movie Production Committee©1989 Kyoko Shimizu

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate DataManagement Discussion and Analysis (MD&A)[Business Performance]

In the television advertising market, expenditures in Japan’s
Kanto region in terms of spot advertising are projected to be
95.7% of the previous year.
In such circumstances, despite a decrease in time (program
sponsorship) income in television, consolidated revenue Figure 1
for the TBS Group in this consolidated fiscal year reached ¥368.13
billion (up 2.8% year-on-year) through a significant increase inincome in Live Entertainment and Media Business division.
Operating expenses (the sum of the cost of sales and sellingand general and administrative expenses) stood at ¥347.347 billion (up 2.8% year-on-year) due to increased expenses such as
program production costs and event implementation costs.

Overview of Business Performance
Against a backdrop of caution over the potential for COVID-19
infections to increase, the economy in Japan in FY2022 saw an
ongoing mild recovery led by personal consumption due to thefact that pre-emergency measures and other restrictions on activity were removed with the aim of balancing infection prevention and economic activity. However, caution was required
throughout the year regarding the risk of an economic downturn overseas due to monetary tightening around the world andthe impact on households of price hikes resulting from soaring
energy and raw material prices.

Figure 1

Figure 2

Revenue（%）

入ル）

Operating Income

Income Margin

5.6%

5.1%

0,000

18.5

3.7%

20.3

20.7

8.5%

8.6%

30.1

28.0

2019

2020

8.9%

6.9%

10.8

325.6

9.5%

3.3%

13.1

0,000

32.0

35.1

25.2

0,000
0

Net Income Attributable to Owners of the Parent/
Income Margin

Net income attributable to owners of the parent

5.7%

358.2

356.7

Figure 3

Operating Income/Income Margin

Income Margin

368.1

366.3

0,000

As a result, operating income profit Figure 2 reached ¥20.782
billion (up 2.1% year-on-year). Ordinary income totaled ¥35.086
billion (up 14.3%), and net income attributable to owners of theparent Figure 3 was ¥35.182 billion (up 9.9% year-on-year).

(¥ billion)(¥ billion)
2018

2019

2020

2021

2022

(FY)

10.0

(¥ billion)
2018

2019

2020

2021

2022

(FY)

2018

2021

2022

(FY)

111

Management Discussion and Analysis(MD&A)[Performance by Segment]

Message from the
President

Long-Term Vision andMedium-Term Management Plan

■ Media and Content Business Segment
The Media and Content business segment reported revenue
Figure 4 of ¥285.23 billion (up 1.4% year-on-year) and operating
income of ¥10.911 billion (down 0.2% year-on-year) at the endof FY2022.
Revenue in the television divisions of TBS Television, Inc.
for FY2022 increased ¥675 million to ¥193.292 billion (up 0.4%
year-on-year). Of these, sales were strong for the World Athletics Championships 2022 in Oregon - the first championships tobe held in three years - and for WBC2023, but they were unable to make up for the decrease after the heights of the Tokyo
Olympics in the previous year and the total figure was ¥79.916
billion (down 2.3% year-on-year). Spot advertising income saw
lower year-on-year expenditure in the Kanto region resulting
in extremely harsh market conditions, and stood at ¥82.969 billion (down 1.9% year-on-year) despite an improvement in the（単位入ル）
five-station share of 0.5 points year-on-year to 20.6%. Advertising income from streaming, however, stood at ¥5.668 billion (upof
16.4% year-on-year) thanks to continued strong performance20,000
free video streaming in Japan. In addition, the strong perfor15,000
mance of fee-based video streaming in Japan and overseas resulted in increased income for the television divisions as a whole.
10,000
Revenue in the Live Entertainment and Media Business division of TBS Television, Inc. for this consolidated fiscal year in5,000
creased ¥5.996 billion to ¥27.817 billion (up 27.5% year-on-year).
In events and shows, on top of a rebound from the previous year
0
in which there was a major impact from COVID-19, the curtain
came up in July on the long-run stage adaptation of “Harry Potter and the Cursed Child” to commemorate 70 years since theStrategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

establishment of TBS and, in addition to the success of the Japan
tour of the Paris Saint-Germain soccer team in 2022, contributed
greatly to a drastic increase in income over the previous year. As
well as this, movies and anime also saw many hit productions,
including “99.9 Criminal Lawyer: THE MOVIE”, the movie “The
Quintessential Quintuplets,” and “From Siberia With Love,” andenjoyed an increase in income. Thanks to strong performancefrom products related to “The Black Swindler” and “I Will Be
Your Bloom” as well as other dramas in the fall in addition to
the rollout of IP in the form of the character Lappy from the“Love It!” regular morning show, the Merchandising Center saw
an increase in income and was able to cover the fall from thehigh demand that had been generated the previous year due
to people staying at home In terms of global business, revenue

Figure 4（単位入ル）

4.5%

16.5
18.0%

(Media and Content)

Revenue from external customers
Operating income

10.9

10.9

281.4

285.2

15,00066.3

10,00077.5%(¥ billion)

Performance andCorporate Data

Revenue/Operating Income by Segment

20,000Lifestyle

Management
Structurefrom “the Ninja Warrior” format continued to be strong.
While TBS Radio, Inc. saw a robust increase in event income,both time (program sponsorship) and spot ad income fell andresulted in an overall income down ¥253 million to ¥8.49 billion(down 2.9% year-on-year).
In addition to increased time (program sponsorship) income
and spot income, BS-TBS, Inc. also saw continued strong income
from its businesses including streaming, and total income increased ¥794 million to ¥17.218 billion (up 4.8% year-on-year).
TBS Glowdia, Inc. saw an increase of ¥50 million that resulted
in an income of ¥28.089 billion (up 2.0% year-on-year) due tofactors such as a recovery in the number of visitors to special exhibitions and events and despite a fall in shopping division sales
and DVD income.

Share of Consolidated Revenue by Segment (FY2022)
Real Estate
and Other

The Global
Environment

Media andContent

285.2

5,000
0

(¥ billion)

2.8
253.7
2020

2021

2022

(FY)

112

Management Discussion and Analysis(MD&A)

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Nichion, Inc. achieved an increase in income of ¥190 million
to ¥8.574 billion (up 2.3% year-on-year) due to an increase inoutsourcing income.
TC Entertainment Incorporated saw a decrease in income of¥1.06 billion to ¥7.122 billion (down 13.0% year-on-year) due toa decrease in DVD sales.
Expenses were higher than the previous year due to an increase in program production costs, in addition to other factors
such as the implementation of large-scale events by Live Entertainment and Media Business division. As a result, operating income in this segment fell by ¥22 million to ¥10.911 billion (down
0.2% year-on-year).
■ Lifestyle Business Segment
The lifestyle business segment reported increased revenue andincome at the end of FY2022, with revenue Figure 5 of ¥66.391
billion (up 8.8% year-on-year) and operating income of ¥3.064
billion (up 29.7% year-on-year).
（単位入ル）The StylingLife Group reported a fall in revenue and income
due to a reduction in the number of orders received by Light20,000
Up Shopping Club Inc., which is engaged in the home shopping
business and had enjoyed strong orders in the previous year. 15,000

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

Revenue/Operating Income by Segment

Figure 6(Lifestyle)

Revenue from external customers

3.0（単位入ル）

Operating income

Performance andCorporate Data

Revenue/Operating Income by Segment(Real Estate and Other)

Revenue from external customers
Operating income

20,000

2.3

Management
Structure■ Real Estate and Other Business Segments
The real estate and other business segments reported revenue
Figure 6 of ¥16.508 billion (up 4.3% year-on-year) and operating
income of ¥6.798 billion (down 3.7% year-on-year) for this consolidated fiscal year.
While revenue increased due to a recovery in rental revenue,
income fell due to factors including increased utility costs.

In the beauty and wellness business, the BCL Company,
which develops, manufactures, and sells cosmetics, continued
to face harsh circumstances, but overall revenue and income increased due to factors including an increase in sales of cosmetics
by CP Cosmetics Inc.
The Plazastyle Company, which is engaged in the StylingLife
Group’s core business of general merchandise retailing, reported
a major increase in both revenue and income. This was due to
the Japanese government’s withdrawal of a request for people
to curtail their activities, which had been issued in response to
COVID-19, and the resulting recovery of customers in-store that
led to a drastic increase in revenue and income and contributed
to an increase in revenue and income for the StylingLife Group
as a whole.

Figure 5

The Global
Environment

7.6

15,000
7.0

10,00010,000

16.5

66.3
5,000
0

(¥ billion)

55.9
0.2

5,000

61.0

0
2020

2021

2022

(FY)

15.9

15.8

6.7

2020

2021

2022

(¥ billion)
(FY)

113

Management Discussion and Analysis(MD&A)

Message from the
President[Financial Position]
Total assets Figure 7 at the end of FY2022 stood at ¥1.67865 trillion, marking a fall of ¥133.766 billion compared to the end of
the previous consolidated fiscal year. While tangible fixed assets
increased by ¥13.604 billion due to factors including the acquisition of land, reasons for this fall include a decrease in investment
securities of ¥154.51 billion due to factors including a decrease inunrealized gains on shares.
Total liabilities were ¥271.681 billion, marking a fall of¥46.948 billion compared to the end of the previous consolidated fiscal year. Factors involved in this include a decrease in deferred tax liabilities of ¥49.409 billion due to a decrease in thefair value of shares held.

Figure 7

798.4

783.0
601.2

794.8

796.1

2020

2021

Cash and cash equivalents at the end of FY2022 stood at ¥97.589
billion, marking a fall of ¥1.118 billion compared to the end of
the previous consolidated fiscal year. Cash flows and the factors
behind them are as described below.
■ Cash flow from operating activities

Cash flow from operating activities Figure 9 resulted in an incomeof ¥30.632 billion (the same period in the previous year resulted
in an expenditure of ¥2.853 billion). The main positive factors
included net income before tax for the period of ¥53.984 billion
and depreciation of ¥13.407 billion, while the main negative
factors included gain on sales of investment securities of ¥20.101

Operating/Investing/Financing Cash Flows
Cash flow from operating activities

73.9

2022

(FY)

10.0

Cash flow from financing activities

16.8

20,00073.2

15,0006.0

0
0.0

Performance andCorporate Data

[Cash Flows]

Figure 9

5.9
35.2

73.1

21.4

15,00010,000

-21.5

5,000
71.0

(%)

0
2018

2019

2020

2021

2022

(FY)

30.6

22.7
-2.8

72.3

10,000
4.0(¥ billion)

Management
Structure

Cash flow from investing activities

20,000
8.0

591.9

2019

The Global
Environment（単位入ル）

5,000
2.0

2018

Human Capital and
Human Rights

Equity Ratio（単位入ル）（%）
1,067.8

883.0

Content Innovation& Technology

Net assets

1,201.6
1,100.2

Value Creation Story

Total net assets Figure 7 were ¥796.184 billion, marking adecrease of ¥86.818 billion compared to the end of the previous consolidated fiscal year. Factors included retained earnings
increasing by ¥28.049 billion because of the recording of net
income attributable to owners of the parent and payment ofdividends, while the valuation difference on available-for-salesecurities decreased by ¥105.997 billion.
As a result, the equity ratio Figure 8 reached 73.1%, and net
assets per share equaled ¥4,726.87.

Figure 8

Total Assets/Net Assets
Total assets

Strategies for
Business

Long-Term Vision andMedium-Term Management Plan

-14.2

-8.6

-8.1
-8.1

-7.3
-24.4

-24.3
(¥ billion)
2018

2019

2020

2021

2022

(FY)

114

Management Discussion and Analysis(MD&A)

Message from the
President

Long-Term Vision andMedium-Term Management Planbillion and ¥20.908 billion for corporation tax and other suchpayments.
■ Cash flow from investing activities

Cash flow from investing activities Figure 9 resulted in an expenditure of ¥7.346 billion (the same period in the previous year
resulted in an expenditure of ¥8.154 billion). The main factors
included income from sales of investment securities of ¥24.263
billion, expenditure on the acquisition of tangible fixed assetsof ¥26.114 billion, expenditure on the acquisition of shares inaffiliates of ¥3.764 billion, and expenditure on the acquisition of
intangible fixed assets of ¥2.124 billion.
■ Cash flow from financing activities

Cash flow from financing activities Figure 9 resulted in an expenditure of ¥24.491 billion (the same period in the previous year resulted in an expenditure of ¥8.164 billion). Major factors included repayment of long-term loans payable of ¥6 billion, purchaseof treasury stock of ¥10.904 billion, and cash dividend paymentsof ¥7.132 billion.

[Source of Funds]
In this consolidated fiscal year, the cash flow from operating
activities exceeded that of the previous fiscal year by ¥33.485
billion. While incomes including ¥24.263 billion from the sale

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

of investment securities were recorded, cash on hand declinedby ¥1.118 billion due, among other things, to the acquisition of
tangible fixed assets amounting to ¥26.114 billion. It is currently
expected that short-term capital investments and strategic investments can be financed by cash on hand and full-year operating cash flow.

The Global
Environment

Management
Structure

Performance andCorporate Data

■ Real Estate and Other Business
Capital expenditure totaled ¥19.563 billion.
The main investments included ¥14.668 billion related toplans for Akasaka Entertainment City and the updating of general facilities.
There was no disposal or sale of important facilities in
FY2022.

[Capital Expenditure]
Capital expenditure Figure 10 for this consolidated fiscal year (including intangible fixed assets but excluding asset retirement
obligations) was ¥26.923 billion. Capital expenditure by reportable segment was as described below.
■ Media and Content Business（単位入ル）
Capital expenditure totaled ¥6.725 billion.
The main investments included ¥3.875 billion on facilities
20,000for TBS Television’s BLITZ Studio, and the updating of generalfacilities.
15,000
There was no disposal or sale of important facilities in
FY2022.

Figure 10

Capital Expenditure by Segment
Lifestyle Business

Real Estate and Other Business

32.9

10,000■ Lifestyle Business
5,000
Capital expenditure totaled ¥634 million.
The main investments included updating of general facilities.
0
There was no disposal or sale of important facilities in
FY2022.

（％）

Media and Content Business

19.5

21.0

0.4
(¥ billion)

0.6

0.5

6.4

6.1

6.7

2020

2021

2022

(FY)

115

Management Discussion and Analysis(MD&A)

Message from the
President

Long-Term Vision andMedium-Term Management Plan

[Research and Development]
The TBS Group works to provide high-quality and diverse services to citizens over public airwaves, while at the same time,
researching and developing new program production, transmission, and broadcasting technologies to contribute to the commercialization of next-generation digital broadcasting.
R&D activities by reportable segment were as described
below.
■ Media and Content Business
The main R&D activities in this segment included (1) the development of a system for the live streaming and recording of images
from information cameras using the cloud, (2) the developmentof a platform to add metadata to broadcast images using AI for
facial recognition, voice recognition, and text recognition, and(3) the development of an online delivery system for content
using high-speed file transfer technology. With regards （単位入ル）
to (1)
in particular, this system performs cloud-based centralized management of images from information cameras around Japan,
20,000and was used in coverage of disasters, elections, and other suchsituations. In the event of a disaster, images from on the ground
15,000can be obtained immediately before and after a disaster hits,
and this system is planned to be used to increase the speed of 10,000
reporting on disasters and to improve the accuracy of information.
5,000
R&D expenditure was ¥78 million.

Strategies for
Business

Value Creation Story

Content Innovation& Technology■ Lifestyle BusinessWe are working on research into the ideal skincare for womenin the modern age, and from the perspective of differentiationfrom our competitors, we create new product concepts that take
into consideration aspects such as consumer needs and marketability. We then develop products on the basis of planned product concepts. In basic research, we are primarily working on thedevelopment of new raw materials. We also conduct researchwith external research organizations to ensure the effective application of cutting-edge research.
R&D expenditure was ¥138 million.

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

■ Real Estate and Other BusinessNo R&D activities of note are undertaken in this area.

（％）
Media and Content Business

R&D Expenses by Segment

Lifestyle Business

138
141

156

78
0

(¥ million)

43
2020

22
2021

2022

(FY)

116

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

2014/3

2016/32017/3

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

2020/32021/3

Management
Structure

Performance andCorporate Data

Financial Data from Past 10 Years¥ million
2015/3

2018/3

2019/32022/32023/3Fiscal Year
Revenue
Gross income

354,338
108,839

347,817106,665

348,539
107,072

355,363
113,296

361,954
113,750

366,353
115,728

356,796
107,008

325,682
95,418358,269
114,818

368,130
116,419

Selling, general and administrative expenses

93,14290,93689,893

93,417

94,94997,156

93,90484,576

94,472

95,636

Operating income

15,696

15,72817,17919,87818,80018,572

13,103

10,841

20,346

20,782

Ordinary income

18,096

18,91522,67826,207

26,923

28,835

21,274

19,23330,70735,086

Net income attributable to owners of the parent

9,644

12,811

14,497

16,136

17,182

25,20530,17428,07232,00835,182

Cash flow from operating activities

23,03827,85132,33736,48535,53635,215

21,40622,713(2,853)30,632

Cash flow from investing activities(11,326)(2,326)(8,956)(10,078)(14,028)(21,588)

5,962(8,618)(8,154)(7,346)

Cash flow from financing activities(23,567)(25,242)(5,326)(36,718)(7,730)(24,387)(14,202)

16,898(8,164)(24,491)

Free cash flow

11,712

25,52523,381

26,40721,508

13,62727,36814,095(11,007)23,286

Total assets

579,039653,732

649,970707,063821,737

798,481783,024

1,100,223

1,201,632

1,067,865

Current assets

130,262

131,127

149,478

145,479

155,660

144,192

158,800

190,053

198,692

209,058

Cash and cash equivalents at end of period

56,312

56,72874,734

67,391

81,12972,03385,059116,061

98,767

97,649Fixed assets

448,777

522,604

500,492

561,583

666,076

654,289624,223

910,170

1,002,939

858,807

Liabilities

193,068

197,613

191,762

189,633

220,786

197,189

191,093

305,338

318,629

271,681

Current liabilities

83,117

63,072

95,27877,231

93,38280,09981,021

86,17675,592104,059

At Year End

Fixed liabilities

109,951

134,541

96,483

112,402

127,403

117,090

110,072

219,162

243,037

167,621

Net assets

385,971456,118

458,208

517,430

600,950

601,291

591,931794,884

883,002796,184

Revenue growth rate

0.6

(1.8)

0.2

2.0

1.9

1.2

(2.6)

(8.7)

10.0

2.8

Operating income growth rate

(3.0)

0.2

9.2

15.7

(5.4)

(1.2)

(29.4)(17.3)

87.7

2.1

Key Performance Indicators (%)

Operating income margin

4.4

4.5

4.9

5.6

5.2

5.1

3.7

3.3

5.7

5.6

Net income attributable to owners of the parent

2.7

3.7

4.2

4.5

4.7

6.9

8.5

8.6

8.9

9.6

ROE

2.8

3.2

3.3

3.4

3.2

4.3

5.2

4.1

3.9

4.3

ROA

3.2

3.1

3.5

3.9

3.5

3.6

2.7

2.0

2.8

3.1
73.1

Equity ratio

63.3

66.7

68.3

71.1

71.2

73.2

73.9

71.0

72.3

Total asset turnover

0.6

0.5

0.5

0.5

0.5

0.5

0.5

0.4

0.3

0.3

PER

19.5

19.2

21.0

21.5

22.9

14.0

8.7

13.2

9.5

9.1

Payout ratio

31.0

27.8

30.1

30.3

30.5

22.9

17.2

18.3

19.7

20.1

Per Share Data (¥)
Annual dividend per share

19.00

22.00

25.00

28.00

30.00

33.00

30.00

30.00

37.00

42.00

EPS

61.22

79.12

83.12

92.46

98.38

144.31173.28164.32

187.35208.76BPS

2,263.65

2,689.56

2,545.60

2,878.29

3,349.52

3,347.03

3,356.30

4,575.61

5,087.12

4,726.87

117

Message from the
President

Strategies for
Business

Long-Term Vision andMedium-Term Management Plan

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

2021/32022/3

Performance andCorporate Data

Non-Financial Data

Environment
2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32023/3

Number of employees at end of year

5,634

5,585

5,641

5,610

5,552

6,090

6,155

6,134

6,454

6,586

CO2 emissions (tons)*

26,01925,336

24,52524,12323,235

21,916

20,054

18,267

18,513

17,451CO2 reduction (tons)*

5,777

6,460

7,271

7,673

8,561

9,880

11,742

13,52913,283

14,345

CO2 reduction rate (%)*

18.2

20.3

22.9

24.1

26.9

31.1

36.9

42.5

41.8

45.1

Recycling rate (%)*

72.7

72.2

67.5

67.8

70.7

68.4

71.3

72.3

69.2

65.5

Tap water usage (m )*103,508

98,972

97,32280,25873,55873,84074,75953,85574,54973,616Groundwater usage (m3)*

115,897

102,169

106,967

102,376

96,064

99,032

96,25475,526

94,66892,984

3*Figures only for TBS Broadcast Center (Broadcast Center + Cultural Facilities Building)SocialGovernance2019/32020/32021/32022/32023/32021/32022/32023/3

Percentage of male employees taking childcare leave (%)**

—

—

54.3

42.9

66.7

Number of female board directors****

0

0

1

Percentage of female employees taking childcare leave (%)**

—

—

100.0

100.0

100.0

Number of male board directors****

9

9

9

Ratio of female employees (%)**

21.1

21.8

22.4

23.0

23.4

Total board directors****

9

9

10

Ratio of female manager (%)***

12.3

13.2

13.2

14.3

14.3

Violations of anti-corruption laws****

0

0

0

Ratio of persons with disabilities employed (%)***

2.0

2.1

2.7

3.1

3.1

Fines relating to corruption*****

0

0

0

Employee turnover rate (%)**

1.3

1.3

2.1

1.8

2.3

Dismissals relating to corruption*****

0

0

0

Political donations*****

0

0

0

**TBS HOLDINGS, INC. + TBS TELEVISION, INC.

***TBS TELEVISION, INC.

Note: In accordance with the revision of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers
Caring for Children or Other Family Members, from FY2022 the percentage of employees taking childcare leave is calculated using
childcare leave and special leave taken for the purpose of childcare****TBS HOLDINGS, INC.

*****TBS Group118

Message from the
President

Strategies for
Business

Long-Term Vision andMedium-Term Management Plan

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

Performance andCorporate Data

Company and Investor Information

Company Profile (as of March 31, 2023 unless indicated)
Name

TBS HOLDINGS, INC.

Date Established

Main Awards
Content/Creator/Technology

Name of Award

May 1951

Stage performance of “Harry Potter and the Cursed Child”

48th Kazuo Kikuta Theatre Awards, Kikuta Kazuo Theatre Grand Prize
30th Yomiuri Theater Awards, Selection Committee Special Award

Head Office107-8006 5-3-6 Akasaka, Minato-ku, Tokyo(+81) 03-3746-1111“TOKYO MER: Mobile Emergency Room”

ContentAsia Awards 2022: Best Asian Drama for a Regional/International
MarketEmployees(consolidated)

7,984 (as of June 30, 2023)

BS-TBS “Looking for the Girl in the Report Card - The Little Returnee You Now,
77 Years After the War”

2022 Agency for Cultural Affairs National Arts Festival, TV Documentary
Category, Excellence Award
39th ATP Awards, Documentary Category, Award for Excellence
JPPA AWARDS 2023, Minister for Economy, Trade and Industry's Award“Any Theory Goes”

TVer Award for Best Entertainment Program

Beijing Olympics XR Stage

Japan Commercial Broadcasters Association Awards, Technology Category,Award of Excellence

World Athletics Championships Oregon XR Studios

The Digital Content of the Year ’22/28th AMD Annual Content Awards
Award of Excellence

Mojiko text generation editor

Japan DX Promotion Association Awards, Grand Prix
ITreview Grid Award 2023 Spring, Voice Recognition Category, Leader

BS-TBS Report 1930 “Seismic Shock: The Former Unification Church and Japanese
Politics: What is the Distance Between Politics and the Church?”

60th Galaxy Awards, Television Category, Awards for outstanding programs

Total shares issued 171,591,065 (including treasury stock)
Minimum
Purchasing Unit

100 shares

Shareholders

19,457

Listing

Prime Market of the Tokyo Stock Exchange

Closing Date

March 31

Ordinary General
Meeting of
Shareholders

June

Administratorof Shareholders’Registry

Mitsubishi UFJ Trust and Banking Corporation

Capital¥54,986,892,896

Securities Code

9401

URL

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

Accounting
Auditor

KPMG AZSA LLC

TBS Radio “Ukraine as seen by Chiki Ogiue – Listen to voices that are overlooked”

60th Galaxy Awards, Radio Category, Awards for outstanding programs

Shinichiro Azumi (TBS Radio “Shinichiro Azumi's Sunday Heaven” personality)

60th Galaxy Awards, Radio Category, DJ Personality Award

External Assessments
Corporate Bond Issuer Rating

Health and Productivity Enterprise

A (single A)

2023 (Large Corporation

First response to

Selected as a Highly Improved

Category) Certified

questionnaire on

Integrated Report as chosen byclimate change

domestic stock management

Rank C

body of the GPIF

( R &I )CDP (ESG Evaluation Organization)

2022 Integrated Report119Company and Investor Information

Message from the
President

Long-Term Vision andMedium-Term Management Plan

Strategies for
Business

Value Creation Story

Content Innovation& Technology

Human Capital and
Human Rights

The Global
Environment

Management
Structure

2020
2020

2021
2021

Performance andCorporate Data

Stock Information
Major Shareholders (March 31, 2023)

Trend in Share Price (¥)
Shares Held(thousand)

Percentage (%)*

The Master Trust Bank of Japan, Ltd. (trust account)

13,966

8.29

The Master Trust Bank of Japan, Ltd.
(Retirement benefit trust account/Dentsu Inc. account)

9,311

5.52

MBS Media Holdings, Inc.

8,848

5.25

Mitsui Fudosan Co., Ltd.

5,714

3.39

NTT DOCOMO, INC.

5,713

3.39

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

5,006

2.97

Shareholder Name

STATE STREET BANK AND TRUST COMPANY 505001(Standing agent: Mizuho Bank, Ltd., Settlement &Clearing Services Department)

3,000
3,000
2,500
2,500
2,000
2,000
1,500
1,500
1,000
1,000
500
500
00

2018
2018

2018

Kodansha Ltd.

2020

2021

2022

Total
shareholder return (%)
3,000

92.6

70.8

101.7

86.3

92.0

2,573

2,183

2,470

2,255

1,974

Low (¥)

1,612

1,232

1,390

1,590

1,456

2,500
2,000

4,479

2.65

1,500

4,288

2.54

Percentageof500
Shares Held0

BIC CAMERA INC.

20192022 (FY)
（年度）
2022

High (¥)

1,000

MITSUI & CO., LTD.
(Standing agent: Custody Bank of Japan, Ltd.)

2019
2019

4,190
3,771

2.48
2.23

*Shares held as a percentage of the total number of shares issued (excluding treasury stock)
In the calculation of shares held as a percentage of the total number of shares issued (excluding treasury stock), the treasury
stock that is excluded from the total number of shares issued does not include TBS shares held by the ESOP trust.

2016● I ndividuals/Other

8.29%

2017

● Foreign Companies, etc.

15.66%● Other Companies

2018

2019

Number of
Shareholders

19,457● Domestic Financial
Institutions
2020

25.50%（年度）● Financial Instruments
Business Operators

1.80%

48.76%

120

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