Diversifying earnings capacity through strategic investment and new business development

「The company will acquire the U-NEXT HOLDINGS common shares owned by U-NEXT HOLDINGS Representative Director and CEO Uno Yasuhide (宇野 康秀), as set out below.」

「In May 2025, we established SAND B Co., Ltd. to acquire and develop content IP and welcomed K Contents Co., Ltd. into the Group. In January 2026, through our subsidiary THE SEVEN US, INC., we invested in Legend Pictures, LLC, a US film production and media company, and entered into a capital and business alliance agreement. In April, we decided to establish a joint venture, StudioMonowa Co., Ltd., with CJ ENM Co., Ltd., a Korean entertainment company, and U-NEXT HOLDINGS Co., Ltd., which operates a streaming platform. Through these and other initiatives, we are working to establish a global development and production structure for content IP.」

「Cash flow from investing activities was an inflow of ¥41.47 billion, compared with an inflow of ¥17.584 billion in the same period of the previous year. The main components were ¥53.797 billion in proceeds from the sale of investment securities and ¥5.702 billion in expenditure for the acquisition of property, plant and equipment.」

「Cash flow from investing activities was an inflow of ¥17.584 billion. The main components were ¥34.606 billion in proceeds from the sale of investment securities and ¥17.679 billion in expenditure for the acquisition of property, plant and equipment.」

「To promote management focused on compliance with the Corporate Governance Code and capital efficiency, we will accelerate the sale of cross-shareholdings and execute approximately ¥160 billion in growth investment using the proceeds and operating cash flow, among other sources, with the aim of increasing profits over the medium to long term and improving capital efficiency.」

「At an extraordinary meeting of the Board of Directors held on 6 November 2023, we resolved to sell part of the investment securities held by the company and its wholly owned subsidiary, and completed the sales on 6 and 7 November 2023. As a result, a gain on the sale of investment securities, recorded as extraordinary income, will be recognized in the consolidated third quarter of the fiscal year ending March 2024, covering the period from 1 October 2023 to 31 December 2023.」

「We plan to make ¥140 billion in growth investment using funds from the sale of cross-shareholdings and operating cash flow, among other sources, with the aim of increasing profits over the medium to long term and improving capital efficiency.」

「We established THE Factory, a new company for our overseas strategy, prepared a content production budget totaling approximately ¥30 billion, and aim to produce 2 to 3 global hit titles within 5 years. We will also build one of Japan's largest new studios in Midoriyama as a base for internationally standardized content production.」

「At a meeting of the Board of Directors held on 28 January 2022, we resolved to sell part of the investment securities held by the company and completed the sale on 28 January 2022. As a result, a gain on the sale of investment securities, recorded as extraordinary income, will be recognized in the consolidated fourth quarter of the fiscal year ending March 2022, covering the period from 1 January 2022 to 31 March 2022.」

「This subsidiary is intended to serve as the core company for realizing the "innovation of content creativity" and the "EDGE strategy" set out in TBS Group VISION2030. Its principal businesses will be planning, developing, and producing multi-use content for global expansion, as well as acquiring and managing the IP that forms the core of a content-driven company. It is scheduled to commence operations in March 2022.」

「Using funds from the sale of cross-shareholdings and operating cash flow, among other sources, we will decisively pursue at least ¥100 billion in growth investment, with the aim of increasing profits over the medium to long term and improving capital efficiency.」

「We also invested in several startups to pursue a broad range of initiatives, including content development and the operation of experiential facilities using AR and VR technologies. XR, a collective term for AR, VR and MR, is a field in which our Group can fully demonstrate its video production capabilities.」

「At a meeting of the Board of Directors held on 6 February 2020, we resolved to sell part of the investment securities held by the company and completed the sale on 6 February 2020. As a result, a gain on the sale of investment securities, recorded as extraordinary income, will be recognized in the consolidated fourth quarter of the fiscal year ending March 2020, covering the period from 1 January 2020 to 31 March 2020.」

「In addition, to expand into new business areas, we invested in Tyffon, which is engaged in digital video fields such as location-based VR and MR. This field has strong synergies with our business, and XR technologies are expected to be a global growth area, so we consider it a field that warrants continued focus.」

「In addition, to promote new businesses and M&A unconstrained by conventional thinking, we established a ¥50 billion strategic investment budget over the 3-year period through fiscal 2020. Going forward, we will further expand our reach as a comprehensive media group and continue to evolve.」

「We have identified the strengthening of the broadcasting business, enhancement of our comprehensive media strategy, improvement of the Group's overall earnings power, and improvement of diversified earnings power through new business development, including strategic investment, as priority issues and are implementing the related plans.」