P.32 Media and Content Business (3)

Media and Content Business Strategies for Business Achieving record-breaking sales at the “World Athletics Championships Tokyo 25,” alongside an evolution toward next-generation TV advertising operations In the terrestrial broadcasting advertising business, we executed strategic sales initiatives, such as achieving record-breaking sales for a single broadcaster’s project with the “World Athletics Championships Tokyo 25.” We are also striving to pass on rising production costs, driven by inflation, to our prices and are continuing our efforts to achieve appropriate increases in unit rates. Simultaneously, by incorporating new advertising technologies and enabling rapid, flexible responses to sponsor needs that were previously impossible with traditional terrestrial commercials, we are redefining the value of terrestrial advertising and driving the creation of new business opportunities. Significant growth seen in both time and spot advertising in FY2025 In FY2025, both time and spot ad sales exceeded the previous year’s figures, marking a year that confirmed resilient demand for television advertising. Spot ad sales reached 106.1% year-on- year, surpassing the area average (103.4%), thanks to the imple- mentation of flexible and strategic sales initiatives in response to changing market conditions. Time ad sales also remained stable, supported by popular programs in the Golden (7 p.m.- 10 p.m.) and Prime time slots (7 p.m.-11 p.m.) such as “Banana Sand” and “The World Unknown to Matsuko,” while the “World Athletics Championships Tokyo 25” drove sales growth. Special programming during the year-end and New Year holidays also contributed, resulting in time ad sales finishing at 109.1% year- on-year, which once again made us keenly aware of advertisers’ high expectations for television advertising. However, terrestrial television ad sales for FY2026 are facing heightened uncertainty, particularly in the strong spot ad market conditions, as many advertisers are impacted by the situation in the Middle East. While remaining agile in response to these chal- lenging environmental changes, we aim to maximize the value of our strong regular programs and major one-off events such as the “20th Asian Games Aichi-Nagoya 2026” in time ad sales, thereby pursuing solid sales strategies and securing steady revenues. (Unit: million yen) Year-by-Year Comparison of Time and Spot Ad Sales Time Spot 90,000 85,000 80,000 75,000 70,000 65,000 0 2020 2021 2022 2023 2024 2025 Addressing rising production costs and appropriate price passthrough As the graph shows, terrestrial advertising sales (both time and spot) are on a recovery trend from the slump caused by the COVID-19 pandemic and on a stable trajectory. On the other hand, “rising production costs,” driven by recent inflation and the necessity of ensuring high-quality content creation and stable, error-free broadcasting facilities, represent a major challenge facing the entire broadcasting in- dustry. To absorb these increased costs and safeguard the sup- ply chain, we are also striving to implement “appropriate price pass-through.” Specifically, backed by strong viewer ratings centered on TBS’s proprietary LTV4-59 (Individual Viewers Ages 4–59) metric, we carefully explain the value of our programs to advertisers and have gained their understanding. In addition, by combining flexible sales methods such as spot packaged plan sales, we are steadily improving the overall profitability of our terrestrial advertising. Results of the LTV4-59 Strategy * Figures in [ ] indicate year-on-year change Unit: % All day Golden Prime time Non-prime time TBS 1.9 (+0.1) 3.9 (+0.3) 3.7 (+0.2) 1.3 (0.0) PUT 10.2 (-0.4) 19.1 (-0.5) 18 (-0.6) 8 (-0.4) 2025/3/31 - 2026/3/29 weekly basis Data by Video Research Ltd. in the Kanto region Towards next-generation television advertising

operations

To dramatically enhance the convenience and flexibility of television advertising, we are promoting “operational sophisti- cation” utilizing technology. As the centerpiece of these efforts, in October 2025, we launched the “Lead-Time Zero Service,” which enables spot commercial materials to be changed up to “20 minutes” before the start of the broadcast program. Conventionally, the submis- sion of commercial materials was required up to four business days prior to broadcast, but the development of this system has enabled seamless, last-minute material replacement. This development has enabled operations that directly maximize advertising effectiveness, such as sorting and airing commercial materials based on the day’s weather, temperature, and trends, as well as instantly switching to AC materials in emergencies (ensuring brand safety). Furthermore, we have concluded a basic agreement with Nippon Television Network Corporation toward establishing “Ad Reach MAX” as an industry-wide platform. Looking ahead to a rollout in the spring of 2027, we are advancing the online trading of commercial slots to build a next-generation television advertising model that is “easy to buy, easy to place, and highly accountable.” 32