P.18 Message from the CFO (1)

Message from the CFO

Medium-Term Business Plan 2026 Optimizing Capital Efficiency and Growth Strategy Investments to Increase Corporate Value

Updated Medium-Term Business Plan 2026

(¥ billion)

Yasushi Gemba

Senior Managing Director and CFO, TBS HOLDINGS, INC. 19.4 21.5 24.7 24.0 26.0 23.0 Operating profit before update Operating profit after update ROIC target before update Actual ROIC Early achievement of Medium-Term Business Plan 2026 targets and updates for further growth The “TBS Group MTBP 2026,” the second phase of the “TBS Group VISION 2030,” was formulated based on our belief that a virtuous cycle of expanding cash flow from operations through the execution of our growth strategies will lead to higher corporate value over the medium to long term, greater returns to our stakeholders, and an appropriate share price. For the final year of MTBP2026, we initially set consolidated net sales of ¥450.0 billion and consolidated operating profit of ¥24.0 billion as financial targets. However, in FY2025, the sec- ond year of the plan, thanks to the support of our stakeholders including everyone working across the TBS Group, we achieved consolidated operating profit of ¥24.7 billion, surpassing our final-year operating profit target one year ahead of schedule. In November 2025, when we revised our operating profit forecast upward to ¥24.0 billion, we began discussing whether to update MTBP2026 for FY2026 or formulate a new MTBP. As part of those discussions, the KPI we considered most important was ROIC (Return on Invested Capital), which we introduced under MTBP2026 to promote a business strategy focused on capital efficiency. For the next Medium-Term Business Plan, we need to review our segment structure based on the fundamental principle of ROIC—managing profitability at the business-unit level. However, we concluded that our preparations were not sufficient to disclose a new plan one year ahead of schedule. We therefore decided to update MTBP 2026. That said, as de- tailed below, our intention in the updated MTBP2026 is to bring forward, wherever possible, those actions planned for the next MTBP as part of our response to the capital markets.

Two reforms underway to advance ROIC management

In FY2025, ROIC stood at 3.8%, making steady progress to- ward our FY2030 target of 5%. The main driver was growth in operating profit, led by strong advertising revenue at TBS Television. This was also supported by a review of invested capital, including the optimization of the timing of construc- tion payments related to the “Akasaka 2-chome and 6-chome Redevelopment Plan.” In addition, the slight delay in executing growth strategy investments from our initial assumptions also had a positive impact. For FY2026, however, we are giving top priority to growth strategy investments, and therefore expect ROIC to remain at approximately the FY2025 level. Looking ahead to the next MTBP, we focused on two main policies in the updated MTBP2026. 18