To Our Shareholders

I would like to take this opportunity to express my sincere gratitude for your continued support for the TV Asahi Group (TV Asahi Holdings Corporation and its consolidated subsidiaries).

For the fiscal year ended March 31, 2024 (hereinafter FY24/3), although net sales increased 1.1% year on year to ¥ 307.8 billion, operating income decreased 14.9% year on year to ¥ 12.3 billion due to the stagnant TV advertising market.

Despite our financial results being unfavorable, our performance in terrestrial viewer ratings were outstanding as we strove to strengthen our content which is the source of our value. For annual year 2023, TV Asahi achieved for the first time the double crown in Individual All ratings with 3.6% in All Day (6 am - midnight) and 5.5% in Prime Time (7 pm - 11 pm). Furthermore, for FY24/3, TV Asahi achieved the double crown for the second consecutive year in Individual All ratings with 3.5% in All Day and 5.3% in Prime Time.

In addition to strengthening the TV broadcasting business, our core business, we are also working towards expanding businesses in areas we have identified as growth areas. With regard to our Internet business, we are pursuing a broad range of online businesses which are contributing to our financial performance, such as ABEMA, an Internet television station; TELASA, a subscription-based VOD service; TVer, a free-of-charge VOD catch-up service; owned media (such as the official YouTube channel ANNnewsCH); and UltraImpression, which operates a video advertising platform.

In our Media City endeavor, we are currently constructing Tokyo Dream Park, a new content output hub that fuses entertainment and technology, in the Ariake Minami district of the Tokyo Bay area. Construction began in FY24/3 and the grand opening is planned for spring 2026. We are keen on expanding the capabilities of the new content output hub and look forward to welcoming many guests to the establishment.

We are also actively pursuing initiatives with each of our strategic partners to develop new IP businesses. We acquired shares in BookLive, Co., Ltd. and KOTOBUKIYA CO., LTD. to strengthen our relationship with them and both have become equity-method affiliates. Building upon the capital and business alliances, we aim to jointly develop high-quality IP and content. Moreover, in April 2024, we announced the building of a new partnership with TOEI COMPANY, LTD. We will leverage the strengths of both companies to create new IP and entertainment.

In addition to continuously striving to enhance our corporate value, we are also practicing the steady implementation of management that is conscious of the cost of capital and stock price. We have formed a specific plan, which was disclosed at our financial results presentation held in May 2024. We will strive to continuously strengthen shareholder returns alongside executing the business strategy and financial strategy established in the current management plan. Furthermore, as an initiative to strengthen information disclosure, we plan to newly publish an Integrated Report in fall 2024.

While the expansion of Internet advertising and other factors are intensifying the competitive landscape of the TV advertising market, the value of our content, IP, and content production capabilities are increasing on the contrary. We will steadily execute the initiatives identified in the current management plan, accelerate our evolution to transcend existing TV stations, and continuously improve capital efficiency that leads to constantly enhancing corporate value to meet the expectations of our shareholders. I thank you once again for your continued support and understanding.