SKY Perfect JSAT : Integrated Report(A4)

Integrated Report 2023

For the year ended March 31, 2023

Brand Slogan

The modern world is overflowing with the information. Even a simple search can provide us the answers.

However, our hearts are not stirred by what is known;

it is the unknown that excites and arouses us. SKY Perfect JSAT Group works in the space field,

making its potential for growth as vast as the expanse of outer space.

We want to be a company that can turn the unknown into infinite possibilities.

These aspirations of SKY Perfect JSAT are encapsulated in

"Our Unlimited Vision, Your Practical Value."

Mission Space for your Smile

Toward a world where uncertainty

turns to peace of mind, difficulty turns to ease, and interest turns to passion

"Space for your Smile" captures our core vision for the future,

where spaces of all kinds-outer space, land, air, and sea,

as well as communities, family living rooms, and other places people call their own-beam with smiles.

From the glints of everyday happiness to the happiness that awaits in the future, we strive to create a world that leads to a brighter tomorrow for everyone.

Business Vision

Space Business

By establishing an innovative communications network for all of space and a global data collection network, we are helping to make a supersmart society a reality.

Media Business

We are contributing to the realization of a diverse and highly creative society as a platform that connects people, companies, and society.

01	SKY Perfect JSAT
Integrated Report 2023

SKY Perfect JSAT Group principles

Our Five Key Questions

Are we rising to new challenges and learning from mistakes?

Are we collaborating with others to create new value?

Have we considered whether "pending" is the better choice?

Are we doing enough to surpass all expectations?

Can we talk with pride about our work to those dearest to us?

SKY Perfect JSAT Integrated Report 2023

02

CONTENTS

04 Value Creation Story

04 Increasing our Corporate Value

1. Strengthening our Earnings Power

1. Improving our Growth Potential

1. Reducing Capital Costs

1. Message from the President

18 The SKY Perfect JSAT Group: A Proven Track Record

20	Value Creation Story
22	Promotion of Sustainability Management	Putting Value
26	Risks and Opportunities	28 Creation into
		Practice
		30	Financial and
			Non-Financial Highlights
		32	Message from
			the Chief Financial Officer
		36	Review of Operations: Space Business
		44	Review of Operations: Media Business
		52	The Environment
		56	Society and Human Resources

Editorial Policy

This report is intended to be a tool to promote dialogue with a wide range of stakeholders, including shareholders and investors, as well as provide information on the Group's medium- to long-term value creation, including management strategy, financial and performance trends, and sustainability -related information such as environmental, social, and governance (ESG). We used the "Guidance for Integrated Corporate Disclosure and Company- Investor Dialogues for Collaborative Value Creation" issued by the Ministry of Economy, Trade and Industry, the "International Integrated Reporting Framework" issued by the Value Reporting Foundation (VRF), the GRI Standards, and other documents as references in editing this report.

Reporting Period

The report covers fiscal year 2022 (April 2022 to March 2023), but includes some information that was current at the time of publication.

Future Outlook

Forecasts, strategies, management policies, goals, and other statements in this report that are not historical facts are predictions about the future that are based on the management's assumptions, plans, expectations, and judgments in light of the information currently available to it. They are subject to various risks and uncertainties that could cause actual results to differ significantly from expectations.

Company Name

• SKY Perfect JSAT Holdings Inc.: "the Company"
• The Company and its domestic and overseas subsidiaries and affiliates: "the SKY Perfect JSAT Group" and "the Group"
• SKY Perfect JSAT Corporation

Related Websites

Investor Relations https://www.skyperfectjsat.space/en/ir/

Sustainability https://www.skyperfectjsat.space/en/sustainability/

03	SKY Perfect JSAT
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60 The Governance

Underpinning

Value Creation

61 Corporate Governance

68 Roundtable Discussion with Outside Directors and a Corporate Auditor

70 Board of Directors

72	Data Section/Financial Section
72	Satellite Basics/ Satellite Fleet
	75	Glossary
	77	Stock Information/Corporate Information
	80	Materiality and efforts to address ESG issues
	82	Consolidated Financial Highlights
	84	Management's Discussion and Analysis
	92	Consolidated Balance Sheet
	94	Consolidated Statement of Income
	95	Consolidated Statement of Comprehensive Income
	96	Consolidated Statement of Changes in Equity
	97	Consolidated Statement of Cash Flows
	98	Notes to Consolidated Financial Statements
	122	Independent Auditor's Report

Value Creation Story

Putting Value Creation into Practice The Governance UnderpinningValue Creation Data Section/Financial Section

SKY Perfect JSAT Integrated Report 2023

04

Value Creation Story

Increasing our Corporate Value

Focusing on our Nine Key Issue Themes (Materiality)

The SKY Perfect JSAT Group intends to focus on its nine key issue themes-or materiality. In order to realize what we are aiming for 2030, we intend to strengthen our earnings power by restructuring our existing businesses, and we intend to improve our growth potential in the medium to long term through proactive investments. At the same time, we intend to reduce our capital costs through sustainability management and increase our corporate value by enhancing both our economic and social value.

Building resilient broadcasting and communications infrastruc- ture, eliminating information gaps

Improving the richness of life through a diversity of content

Contributing to the environment to make a decarbonized society and recycling-based economy a reality

Improving the environment

in space

Promoting innovation which contributes to the environment and society

Promoting partnerships

MATERIALITY

Developing a strong base for management

Activities by

a diverse array of people

Regional and

community development

05

SKY Perfect JSAT Integrated Report 2023

Strengthening

our Earnings

Power

Reinforcing a stable earnings base

Management strategies

• Strengthen the profitability of existing businesses
• Enhance human capital
• Improve a management base

Improving

our Growth

Potential

Building medium- to long-term

foundations for growth

Management strategies

• Establish businesses in new domains
• Enhance human capital
• Improve a management base

Generating

Free

Cashflows

Maximizing

Corporate

Value

Reducing		Economic value
Capital Costs
	+ Social value

Promoting sustainability management

Management strategies

• Improve a management base -Strengthen dialogue with share-
  holders and investors
• Enhance human capital

Value Creation Story

Putting Value Creation into Practice The Governance Underpinning Value Creation Data Section/Financial Section

VALUE CREATION STORY

SKY Perfect JSAT	06
Integrated Report 2023

Value Creation Story

Strengthening

our Earnings

Power

Reinforcing

a stable earnings base

The SKY Perfect JSAT Group is a pioneer of the Japanese space business. In 1989, we became the first Japanese company to launch a communications satellite and, since then, we have used more than 30 satellites.

Our Space Business provides global coverage, with a particular focus on Japan and the Asia-Pacific region, and we are strengthening our earnings base in the field of mobile communications services, while at the same time making our entry into the data intelligence business.

In our Media Business, which delivers SKY PerfecTV!, we cater to the diverse needs of our viewership through our broadcasting and distribution, and we are also steadily increasing our FTTH customer base.

Materiality themes

Building resilient broadcasting and communications infrastructure, eliminating information gaps

Improving richness of life through a diversity of content

Promoting partnerships

Developing a strong base for management

Activities by a diverse array of people

Business Fields of the SKY Perfect JSAT Group from people's lives on the ground to space

SDGs in space: Space debris removal

Space debris has become a global issue. For this reason, in collaboration with RIKEN and other research institutes, SKY Perfect JSAT has started developing the world's first satellite capable of eliminating space debris using lasers.

Communications for mobility: Stay connected even in the sky

We offer Internet connection services for aircraft by satellite communi- cations, enabling customers to use their smartphones, tablets, and computers to access the Internet while in the skies.

Meeting diverse viewership needs through broadcasting and distribution

Broadcasting: SKY PerfecTV!

Launched in 1996 as PerfecTV!, Japan's first-ever digital broadcasting service, SKY PerfecTV! has become one of Japan's largest multichannel pay TV broadcast services.

Subscribers can use the free SKY PerfecTV! distribution service to access broadcasts on their smart- phones, tablets, and computers.

Distribution: SPOOX

The SPOOX pay video distribution service makes diverse content available via various purchasing meth- ods, from monthly subscriptions with unlimited access to the purchase of individual content.

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Geostationary orbit

36,000 Km

© Boeing

Low earth orbit

Image courtesy of iQPS Inc.

~1,000 Km

Geostationary satellites: connect anytime, at all times

In 1989, SKY Perfect JSAT succeeded in launching JCSAT-1, Japan's first-ever private communications satellite. Since then, we have provided stable communications from space-in line with our mantra of "connect anytime, at all times"-not only in normal times but also in disaster.

Satellite data x AI: utilizing data from low earth orbit satellites

Our information services draw on various types of data that can be collected from our low earth orbit satellites, including images and positional information, and are used in the fields of security and disaster prevention. We are also seeking to open up new markets, in the fields of finance, insurance, logistics, and agriculture, forestry, and fisheries.

Value Creation Story

Stratosphere

20 Km

Atmosphere

10 Km

HAPS: a relay station in the sky

In order to provide communications services with remote islands and other regions where the establishment of terrestrial lines is problematic, we are aiming to position a high-altitude platform station (HAPS) in the stratosphere.

We also intend to use HAPS to provide communications services for remote sensing, and for mobilities, including drones, AAM (Advanced Air Mobility), and others.

Putting Value Creation into Practice The Governance

Fiber to the home (FTTH) Business: covering 42.8 million households

Our FTTH Business uses optical fiber lines to deliver terrestrial, BS and CS, and 4K8K satellite broadcast TV retransmission services. Today, our business has expanded to cover approximately 42.8 million households* in 37 prefectures.

Underpinning Value

Ground

0 Km

Sea

0 Km

*Due to recent changes in market environments, we now calculate the number of households using data from the National Census.

According to our previous calculation methods, which relied on determining the number of fixed- line telephone users, our FTTH coverage currently stands at approximately 34.2 million households. Data is correct as of March 31, 2023.

Comprehensive support for video relay, production, and distribution

Our Media Solutions Business helps companies resolve problems related to video relay, production, and distribution. We leverage the knowledge we have accumulated through our operation of SKY PerfecTV!, and make full use of the broadcasting facilities, studios, and other program production facilities at the SKY PerfecTV!Tokyo Media Center.

Communications for mobility: Stay connected even at sea

We offer Internet connection services via satellite communications over a vast sea area,meeting the demand for Internet access at sea where terrestrial line communications are difficult.

Creation Data Section/Financial Section

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Integrated Report 2023

Value Creation Story

Improving

our Growth

Potential

Building a foundation for

growth by 2030

The competitive environment in our areas of business is undergoing significant change, with technical innovations in geostationary satellites, the rise of new low- earth satellite operators, and the rapid growth of video distribution services.

But at SKY Perfect JSAT, we see this change as a business opportunity. Indeed, we intend to improve our medium- to long-term growth potential by promoting the development of technologies and services in both our Space Business and our Media Business-in a creative, nonlinear manner-and by contributing to the realization of a supersmart society.

Materiality themes

Contributing to the environment to make a decarbonized society and recycling-based economy a reality

Improving the environment in space

Promoting innovation which contributes to the environment and society

Promoting partnerships

Developing a strong base for management

Activities by a diverse array of people

Space Business➡P.36

Contributing to making a supersmart society a reality

Building information and communications infrastructure that supports society and people's daily lives.

The communications infrastructure of our Space Business is currently based on conventional geostationary satellites. However, in 2021, in partnership with Nip- pon Telegraph and Telephone Corporation (hereinafter "NTT"), we commenced development on a "Space Integrated Computing Network," capable of providing diverse communications infrastructure according to differing needs.

The Space Integrated Computing Network entails building innovative communications networks and earth environment data collection networks that cover all of space, and seeks to contribute to making a supersmart society a reality.

Segment profit goal	¥21 billion

¥13.5 billion

FY2022FY2030

Media Business ➡P.44

Realizing a highly creative society

As a platform that connects people, companies, and society.

In our Media Business, we are seeking to expand our broadcasting, distribu- tion, and realistic fan experience services and, at the same time, grow our FTTH Business.

Other initiatives include building a media solutions business that includes Media HUB Cloud, a service that utilizes the Group's tangible and intangible assets; entering the field of connectedTVs, and providing environments for viewing diverse video distribution services; and establishing an advertising platform that leverages data on individual preferences and behaviors.

Segment profit goal	¥5.0 billion

¥2.8 billion

FY2022FY2030