1Q FY2025 Financial Results Briefing Summary of Question and Answer Session

August 5, 2025

Reform Action Plan / Business Performance Trends

A:

We are not indicating a specific timing for achieving 8% ROE at this time. Regarding equity capital, however, we are considering reducing it on a scale that will have a meaningful impact on ROE. At Board of Directors meetings, with outside directors participating, we are discussing matters such as the Group's future direction, and we hope to be able to indicate our direction to a certain extent by around the end of the second quarter.

A:

We have indicated our policy on share repurchases as follows: assuming a recovery in business conditions, we plan to repurchase over ¥100 billion by FY2029. We intend to advance this policy with a sense of urgency. Fuji TV's broadcasting revenue, on which the business recovery is premised, appears to be recovering substantially. However, we expect to determine the timing once the situation becomes a bit clearer.

A:

As of March 31, 2025, we held over ¥200 billion in strategic shareholdings, and we have indicated a policy of reducing that by over ¥100 billion. Whether we continue to hold specific shareholdings will be determined on an individual basis, considering whether they contribute to enhancing medium- to long-term corporate value and whether they are necessary for business or collaboration purposes.

A:

We believe that the overseas expansion of business is essential. Key IP for overseas roll-out will be those Japanese original assets, such as character properties, manga, original animation titles and other 2D creations. Games and character goods are also relatively easy to expand overseas and can potentially achieve explosive hits. There are two development approaches: original content developed in-house, and promising original properties or concepts that we invest in and adapt into video productions. We intend to pursue both approaches, and we believe we should especially develop original concepts in-house. To that end, we plan to allocate a substantial development and investment budget.

A:

At the end of the fourth quarter of the previous fiscal year (FY2024), the impact of the Fuji TV incidents on network affiliates was limited, but some affiliates began to experience impacts from April onward. Ad placements at Fuji TV have started to recover, and we expect ad placements to the network affiliates to recover as well. At the same time, we intend to continue streamlining the broadcasting business across the network with an eye to the future. If appropriate measures are implemented, we believe the business can be made sustainable.

A:

We made all three companies consolidated subsidiaries for the purpose of business expansion. AG Hotel Management, the operating company of Aloft Tokyo Ginza, was consolidated for its strong business performance. Sankei Investor 1090, LLC is a

U.S. company that serves as THE SANKEI BUILDING's hub for

overseas investments; it has made significant investments in new leased-residence developments in the U.S. Fuji Culture X was originally established as "Fuji Games," but it has expanded from app-game development to also handle contracted customer-management operations related to FOD (streaming services). Its performance has been growing steadily, which is why it was included in consolidation.

With respect to our 8% ROE target, we assess each operating company's capital efficiency and profit margins individually, focusing on whether they will contribute to improving ROE. We may change the scope of consolidation as necessary.

Governance

A:

The newly appointed independent Outside Directors are each actively engaged. In addition to Board of Directors meetings, they participate in various committee meetings, and there are other frequent opportunities for discussion. The Board of Directors now devotes more than twice as much time to its meetings as before.

We are currently discussing the Group's future direction - what vision to pursue and how to advance various reform measures with a sense of urgency. We have also been asked to explain our efforts to strengthen compliance and our monitoring framework. Through these explanations and discussions, not only has the Outside Directors' understanding deepened, but management has also gained diverse perspectives and valuable insights. We feel, therefore, that they are making an extremely large contribution.

Fuji TV's business performance and developments

A:

We have received word from many advertisers that they will resume placing their ads. In particular, we predict a full-scale return from October onward, which we think will have a significant positive impact on our business performance. Since the incidents, we have continued to produce and broadcast programs of the same quality as before, even with the suspension of ad placements. In advertising sales as well, we are working to ensure that advertisers recognize that value.

A:

As we transform into a true content company, the biggest change will be to the project greenlighting process. Whereas programming, production, and sales divisions previously planned and decided programs based on TV broadcast slots, going forward proposals will originate from unconstrained creative ideas, independent of broadcast slots, and the distribution team will explore various revenue opportunities. A proposal can be greenlit if it shows potential to generate revenue not only from TV broadcasts but also, for example, from pre-sales of broadcasting rights. This will broaden the range of projects, and where projects can generate revenue, we can allocate larger production budgets. Because revenue planning becomes more important, we elevated the marketing division to a bureau-level organization and strengthened its structure. We aim to better understand user and client needs and enhance the marketability of our offerings.

A:

A characteristic of FOD is that it is operated as an internal business. The streaming business is a growth area, and the fact

that we have our own platform is a positive factor. There is still plenty of potential for growth, and we could consider developments that deploy Fuji TV's archives. At the same time, we also see potential for various collaborations, so we intend to explore that direction as well.