Risk of Changes to Broadcasting Act, Radio Act and Other Regulations

「Under the revised Broadcast Act, which came into force on 1 April 2024, broadcasters may use identical programming across multiple broadcast service areas upon receiving certification from the Minister for Internal Affairs and Communications, regardless of their financial condition.」

「In fiscal 2023, the Diet was expected to deliberate and pass a bill partially revising the Broadcast Act. Under the current Broadcast Act, terrestrial television programs must differ by broadcast service area, and identical programming is not permitted. The amendment will establish a system under which terrestrial television broadcasters that wish to do so may, upon receiving certification from the Minister for Internal Affairs and Communications, use identical programming across multiple broadcast service areas without changing the areas themselves.」

「The Group comprises a diverse range of companies engaged in broadcasting-related businesses and non-broadcasting businesses, including real estate leasing, general merchandise sales, mail-order, beauty and wellness, and food service. Each business is subject to various laws and regulations, including the Act on the Improvement of the Living Environment in Large-Scale Retail Stores, the Pharmaceutical and Medical Devices Act, the Act on Specified Commercial Transactions, the Act on the Protection of Personal Information and the Food Sanitation Act, as well as standards concerning labeling, quality, the environment, accounting and taxation.」

「If there are significant future changes to current regulations under the Radio Act, Broadcast Act and other laws governing television and radio broadcasters, the changes may affect the Group's business results and other matters. In addition, if the combined proportion of voting rights held directly or indirectly by foreign nationals and others reaches 20% or more of the Company's voting rights, the Company may, pursuant to the Broadcast Act, refuse to enter or record in the shareholder registry shares acquired by foreign nationals and others.」

「Since receiving its broadcasting licence in January 1955, the Group has continued to renew it every 5 years, the licence validity period under the relevant law. On 1 April 2009, the licence was succeeded by its subsidiary TBS Television, Inc., replacing the Company when the Company became a certified broadcasting holding company. If there are significant future changes to the laws and regulations governing television and radio broadcasters, including the Radio Act and the Broadcast Act, the changes may affect the Group's business results and other matters.」