TBS : FY2025 Consolidated Financial Results Presentation （with Transcript）

FY25

Financial Results Presentation

(Fiscal year ended March 31, 2026)

TBS HOLDINGS, INC.

Thank you for takinp time out of your busy schedule to attend our results presentation today.

We would now like to begin the presentation of the FY2025 results for TBS Holdings.

Presenters

P resident, Represent.ctive Director & CEO V ice P resident & Regresentat ive Director Sellior M n»ginq Director & CFO

Director & CGO

StylirJgLife Holclinqs Inc

P resideiJt .aiJd Remesei I.ctive Director

YARUKI Switc h GrcfJp HoIc1inos C o., Ltu. P resident and CEO

Ryujiro Abe

Mass tune RyJho Y‹aSJshi Ger» b.a Y.ayoi Nakatani

HiroyrJki KitamrJ ra

Naoshi Tak‹ah‹ssli i

Agenda

Sumner ry of FY25 Financi.aI ResrJlts

TBS Group Medill I I-Term bbls iness Plan 2026 Updated Prog res s cry GrowtlJ Str.ntegies

President, Rep es+ntntive Director 6 CEO

RyrJj irc Abe

Prog ress on C oiiterit Tir ieless V‹sIdle Ir it iatives

Q&A

Today's schedule is as follows.

We wilI start with the TBS Group's “Summary of FY25 Financial Results” by Senior Managing Director and Chief Financial Officer Yasushi Gemba.

This will be lot towed by the “TBS Group Medium-Term Business Plan 2026 Updated and Progress on Growth Strategies” by President & Chief Executive Officer Ryujiro Abe.

Vice President & Representative Director Masamine Ryuho wilI then present the “Progress on Content Timeless Value.”

After the presentations, we will have a Q&A session during which our management team will answer your questions.

Please take this opportunity to ask any questions you may have.

Agenda

Summary of FY25 Financial Results

Senior Managing Director & CFO

Yasushi Gemba

TBS Group Medill I I-Term bbls iness Plan 2026 Updated Prog res s cry GrowtlJ Str.ntegies

President, Representative Did+rtor & CEO

Ryujiro Abe

Prog ress on C oiiterit Tir ieless V‹sIdle Ir it iatives

Q&A

Summary

FY25 Results

(Senior Managing Director & CFO:Gemba)

Hello, this is Gemba. Thank you for your attendance.

I would Iike to start with our FY2025 consolidated results. Net sales were

424.8 billion yen, an increase of 18.1 billion yen.

Operating profit was 24.7 billion yen, which was an increase of 5.2 billion yen.

Net sales and alI profit categories have reached their highest levels since our transition to a holding company.

In terms of business segment,

the Media and Content business achieved increases in both sales and operating profit, thanks to stronp broadcasting revenue and streaming ad revenue at TBS Television.

The Lifestyle business saw an increase in sales due to a rise in the number of students at the YARUKI Switch Group and the StylingLife Group's successful cosmetic products. However, operating profit decreased as the personnel and other expenses exceeded revenue.

The Real Estate and Other business were roughly unchanged from the previous year.

For further details, such as next year's earnings and other matters will be provided by President Abe in his presentation of the “TBS Group Medium-Term Business Plan 2026 Updated.”

This concludes my presentation.

Agenda

Sumner ry of FY25 Financi.aI ResrJlts

TBS Group Medium-Term Business Plan 2026 Updated Progress on Growth Strategies

President, Representative Director & CEO

Ryujiro Abe

Prog ress on C oiiterit Tir ieless V‹sIdle Ir it iatives

Q&A

TBS Glo‹i p Medium-Tel i4z Bv inc» hisr 2026 Urdated

Status of Financial Performance

FY2025 Results Net Saies 424 9 biliion yen Operating Profit 24 7 billion yen Net Sales •1 S 1 Dillion yen / 0perating rofit +5 2 billion yen

z vs

an Net Sa es almost in line (-0 illion yen) / Operating Profit +3 2 billion yen

The operatl nq prof t qoal outlined in the Medium-Term Business Plan 2026 (M+BP2026 has oeen achieved, one year ahead of sc hedule F+2026 target is updated to Net Sales 440 billion yen 0penting Profit 26 bill on yen

500

Net 5ales (Consolidated, billion yen)

4d0.0

d06,7

400

350

300

0 perating Profit (Conso lidated, b illion yen)

24.7

21.5

309.9

200

100

1 05.0

2025

2025

2026

2026

'FY2025 result and FYZ026 farecast reflect the 1ransfer of the TB5 B ro adcast Center fro m TBS Television to +B5 Hold mps

(President, Representative Director & CEO:Abe) Hello, this is Abe.

I would Iike to explain our update to the TBS Group Medium-Term Business Plan 2026 that was announced yesterday.

With repard to our FY2025 earnings, both net sales and operating profits have shown steady growth since FY2023. In particular, operating profit achieved the tarpet outl ined in the Medium-Term Business Plan 2026, which was announced in May 2024, one year ahead of schedule.

Consequently, we are revising our targets for FY 2026, the final year of the Medium-Term Business Plan 2026, to net sales of 440 billion yen and operating profit of 26 billion yen.

TBS Group Medium-Term Business Sian z0Z6 Updated

Status of ROIC as KPI for Capital Efficiency

• KPI Introduction: ROIC was adopted as a benchmark under MTB P 2026 to enhance capital efftcienc y.

• Current Status: Largely on track, although invested capitai has been frontloaded due to sign ificant strategic investments.

• Next Step: Reviewing segment classific at ons toensure soi›d capitai management in tne next Medium-Term Business P ian.

Consolidated (oiltion yen)

394.3	406.7		440.0
15.1 3.85g	4.79X	21.5 5.06B	26.0
2.6Z	3.1%

Net Sales

Operating Profit Operating Profit

Marq in (S.)

ROIC (P›)

Targeting ROIC of 5P by FY2030 through reconfiguration of the earnings base

8

In addition to these quantitative performance targets, our priority KPI is ROIC, which we introduced in the Medium-Term Business Plan 2026, to promote capital-efficient business management.

Although invested capital has increased due to large-scale investments and other factors, progress is generally beinp made as planned on the back of stronp earnings.

For our next medium-term plan bepinninp in FY2027, as we plan to manape capital efficiency by segment, we have proactively initiated a review of our invested capital and debt financing for each segment.

T I

T I

I

” ' ' I i I .'

Strategic Approach Toward Our Target Balance Sheet Structure

Non-current Assets

Ba sic Poli cy

I would Iike to outline our pot icy for further focusing on capital efficiency starting this fiscal year while keeping an eye toward our next medium-term plan.

In focusing on capital efficiency, we must transform our entire balance sheet into a lean structure.

First, we will seek an appropriate level of equity capital and maintain disciplined control of capital.

We had not relied much on debt financing in the past, but in order to set appropriate WACC levels for each segment in the future, we wilI proactively carry out debt financing as needed.

Meanwhile, regarding non-current assets on the investment side, we wilI reshape our portfolio through selectivity and focus in order to accelerate growth. Regarding current assets, we will analyze working capital turnover for each business and implement improvement measures.

Acceleration of Management Focused on Capital Efficiency

Dri ve ape ati n g p fOfII D expandi kg a cycle of oDeratinq ca si flow throllgh proactive investments in growth

Ut IIIZDt If O*

Excess Cash

Review invested capital in each business segment to g retdre far seq »e» t b.used

Strengthen shareholder returns de n us ard h yG‹n ck s, etc

The key to enhancing the precision of ROIC management and increasing corporate value sustainably is to improve the spread between WACC.

To that end, the top priority will be to contribute to profits by promoting the EDGE strategy through aggressive growth strategy investments. However, it is necessary to simultaneously promote comprehensive balance sheet reform on a segment-by-segment basis, as I mentioned earlier.

The transfer of TBS Television’s Broadcast Center to TBS Holdings on April 1 was a part of such actions.

Previously, the majority of the Broadcast Center was the asset of the Media and Content segment. Following the transfer, it will be managed as invested capital of the Real Estate and Others segment.

Consequently, the Media and Content segment will establish revenue targets based on paying an appropriate amount of rent, while the Real Estate and Others segment will establish revenue targets based on its invested capital. In other words, our aim is to define each segment's tarpet management.

Updated Capital Allocation

Based on these pot icies, we updated our capital allocation, positioning FY2026 as a phase in which we will begin improving the ripht-hand side, or the financing side, of the balance sheet, in view of promoting full-scale ROIC management starting in FY2027.

First, regarding debt financing on the cash-in side, we wilI completely overhaul financing for the Akasaka 2 & 6-Chome District Development Plan and increase debt financing from 44 bilIion yen to 84 billion yen.

The sale of investment securities will be revised from 110 billion yen to 135 bilIion yen, which includes sales already carried out in April.

Regarding operating cash flows, while we are working to increase them, we wilI revise our plan downward due to factors such as an increase in the tax burden resulting from expanding the sale of investment securities.

However, we expect to maintain the 20 billion yen return on growth

investment.

Meanwhile, growth investments on the cash allocation side will remain at 160 billion yen, but we have newly allocated 15 billion yen to major capital investments that will contribute to the advancement of broadcasting technology.

Regarding shareholder returns, we are increasing them further from the tentative amount of 80 billion yen, to which we previously increased, to 105 bilIion yen in light of the early achievement of some of the targets outlined in Medium-Term Business Plan 2026.

TBS Group Medium-Term Business Sian 2026 Updated

Key Points of Proactive Shareholder Returns in the MTBP 2026 Updated

• Capital Discipline: Manag inq invested capitai and cost of capital to drive ROIC-based management.

• Strategic Balance: Achieving autonomous equity control by balancing investments in growth with shareholder returns, considerinq that investments in areas such as content IP require time to realize a consistent positive cashflow.

• Value Enhancement' While maintaining our existing dividend polic y, expanding the return by 45 billion yen relative to the initial plan (25 billion yen ncrease from tne Novemberannouncement),following a review of capital allocation. Enhancing both corporate value and shareholder interests throuqh proactive returns

billlon yen

51.6

o Share buybac¥s • D ivioend

20 18.0

18.9

l 16.9

FY2021

FY2022

FY2023 .

FY2024

FY2025

fT2026 forecast

Y15

Year•end F¥’2Z

End off H

End of 1 t4

¥ZZ ,

G]2

' F•Y23

¥ear-end

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¥ZZ

Y27

FY24

Year-end

¥d1

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7ear-end

Y49

ISO

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Our top priority is generating profit through medium- to lonp-term prowth and carrying out shareholder returns based on that profit generation.

However, in view of the time required for the growth strategy investments to generate an expanding cycle of operating cash flows, the early achievement of profit targets outlined in Medium-Term Business Plan 2026, and the accumulation of cash and deposits, we wilI implement more proactive shareholder returns in this update.

Specifically, we are increasing our year-end dividend for FY2025 from 38 yen to 49 yen and raising our annual dividend for FY2026 by 16 yen to 100 yen. We also plan to buy back shares worth 36 billion yen in FY2026.

Through these initiatives, we wilI increase our corporate value as welI as the value for our shareholders.

Initiatives to Implement the EDGE Strategy

Lastly, I would Iike to outline our efforts to promote the EDGE strategy.

As you can see, we are making proactive efforts in growth strategy investments to execute “Driving Edge forward by leveraging creative enpine.”

I wilI now explain three specific topics of our prowth strategy.

THE SEVEN

First is our global business, THE SEVEN.

Starting in FY2026, we will launch a series of major new titles and

expand our lineup.

As a result, we are forecasting net sales of 6.3 bilIion yen for FY2026 and

8.1 bilIion yen for FY2027.

In April, we entered into a joint development agreement with Disney+.

This is the first time Disney has entered into a long-term, ongoing content development agreement with a japanese production company with the aim of global video streaming.

Going forward, we will continue creating innovative content from japan that captivates plobal audiences.

New Joint Venture: StudioMonowa Established StudioAonowo

TBS, South Korea's CJ ENM, and U-NEXT HOL DING S established a joint venture, “StudioMonowa.”

“StudioMonowa ’ a fusion of japanese and Korean creativity, to create next-generationplobal IPs that resonate worldwide.

Studio Monowa Launch Ceremony

TBS

Purpose of establish ment and vision

Syn ergy

TBS, CQ-ENM of South Korea, and U-NEXT Holdings have established a joint venture called “StudioMonowa.”

The aim of this project is to transition to a comprehensive IP business that handles everything from production to spin-offs.

Combining TBS's planning and directing capabilities with CQ ENM's world-class production expertise and U-NEXT’s platform knowledge, we wilI deliver world-class qual ity content.

Going beyond video production to own the IPs and plan the development of IPs derived from the titles from the initial stage, we will secure a lonp-lasting, sustainable business model.

We will combine japanese and Korean expertise to bring the next generation of global lPs to the world from Asia.

EduTainment : " ”,

• Integrating earty childhood educadon and entertainment, the EduSainment budness almsto geneate 40 billion yenInsales” by F¥'30.

• Mr. Maseki Yameseki.a key figurein the education indusoy.was appointed Project Executive Office topromote the business

• Service davelopmenf and buJness Incubaaon will baearthed out udng digital andphydcal approaches undet tnekeyword"Imaga and Al."

| Project Executive Officer (In charge of Edutainmentbusinessdevelopmentmategy)

Masaki Yamasaki

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I would now like to explain our EduTainment business.

By appointing Mr. Masaki Yamasaki, who led education businesses at Benesse, as Project Executive Officer, we will accelerate the development of services based on “imape and AI.”

Specifically, we will provide a reliable learning environment usinp news content in “AI for School,” which has been adopted as an experimental study project by the Ministry of Education, Culture, Sports, Science and Technology.

Furthermore, in “e6 project,” our joint project with NTT, we wilI rodI out original IPs and commercialize AI Theme Park.

Using digital and physical approaches, we will create new ways of learning that foster children’s ability to make their own decisions.

SAND B

Lastly, I would Iike to outline our efforts in “SAND B.”

“SAND B” utilizes a total investment budpet of 30 bilIion yen to acquire IPs as welI as to identify and develop promising IPs.

As we announced yesterday, we are welcoming next-generation studio

XenotoontoourGroup.

With a 3D animation studio led by Mr. Gensho Yasuda, an animator with over 6.3 million social media followers in total, Xenotoon's strengths lie in its cutting-edpe technology and marketing capabilities.

We wilI continue to accelerate our animation business with the aim of identifying and developing new IPs, as welI as acquiring mepa IPs.

This concludes my presentation.

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-i :’ :--	318,000	-• —	I I	12,000
'J	105.000			3,8O0	* I ' ' - -
	17,000	-		]0,1Q0	1.
	440,000	'

(Gemba)

I'd like to add one point.

As President Abe explained earlier, following the transfer of the Broadcast Center from TBS Television to TBS Holdings, approximately 3.0 billion yen in operating profit will be transferred from the Media and Content segment to the Real Estate and Others segment.

The actual results for FY2025 shown in this table have been revised to reflect this impact.

For the Media and Content segment, we are forecasting an increase of

5.7 billion yen in net sales and an increase of 0.4 billion yen in operating profit due to the growth of TBS Television’s streaming business as welI as other non-broadcasting businesses, in addition to an increase in THE SEVEN's number of delivered projects.

For the Lifestyle segment, we are forecasting an increase of 9.2 billion yen in net sales and an increase of 1 .0 billion yen in operating profit due to a significant contribution from the StylingLife Group's new business.

For the Real Estate and Other segment, we expect a mild increase in net sales but a decrease of 0.2 bilIion yen in operating profit due to increases in construction and maintenance costs.

This concludes my supplement.

Agenda

Sumner ry of FY25 Financi.aI ResrJlts

TBS Group Medill I I-Term bbls iness Plan 2026 Updated Prog res s cry Growth Str.ntegies

President, Rep es+ntntive Director 6 CEO

RyrJj irc Abe

Progress on Content Timeless Value Initiatives

Vice President & Representative Director

Masamine Ryuho

Q&A

19