Materials for New Investors

Transcript

1. 0 Materials for New Investors MEDIA DO Co., Ltd.
2. 1 CONTENTS Company Introduction Full-year Earning Trends for FYE 2/25 1. Five-Year Plan 2. Shareholder Return Policy 3. Management that is Conscious of Cost of Capital and Stock Price p.2 p.69 Financial Policy 1 4 p.96 3 eBook Distribution Business p.33 Strategic Investment Businesses p.48 5 7 1. Global business 2. IP Solution business 3. SC（Sustainability Creation）business 8 Sustainability p.110 6 Full-Year Earnings Forecast for FYE 2/26 p.92 2 Medium-Term Management Plan p.9 1. Evolution as a book distribution solutions company 2. SC（Sustainability Creation）business 1. Full-Year Financial Highlights for FYE 2/25 2. Consolidated earnings 3. eBook Distribution business 4. Strategic Investment businesses
3. 2 MEDIA DO Co., Ltd. Materials for New Investors Company Introduction 01
4. 3 Unleashing a virtuous cycle of literary creation More Content for More People! MISSION VISION Article 1, Chapter 1 General Provisions, Copyright Act of Japan The purpose of this Act is to provide for authors' rights and neighboring rights with respect to works, as well as with respect to performances, phonograms, broadcasts, and cablecasts, and to ensure protection for the rights of authors and other such persons while according attention to the fair exploitation of these cultural products, and thereby to contribute to cultural development. 1. Company Introduction The corporate philosophy of MEDIA DO
5. 4 Trade name MEDIA DO Co., Ltd. Capital ￥5,990million（as of Feb 28, 2025） Employees 279（stand-alone）, 579（consolidated）（as of Feb 28, 2025） Founded/ Established June 1994 / April 1999 Stock listing (Securities code) Tokyo Stock Exchange, Prime Market (3678) Office Head Office: 5F PALACESIDE Bldg. 1-1-1 Hitotsubashi Chiyoda-ku Tokyo, Japan Tokushima Kito Office: 5-23 Iwatsushi, Kitowamuda, Naka-cho, Naka-gun, Tokushima, Japan Group & Affiliated Companies Company Outline 1. Company Introduction
6. 5 197 139 812 1,415 617 2,141 1,880 977 319 810 1,210 1,831 1,962 2,659 3,000 3,602 4,086 5,544 8,074 11,242 15,532 37,213 50,568 65,860 83,540 104,722 101,667 94,036 101,917 2000/2 (1999) 2001/2 (2000) 2002/2 (2001) 2003/2 (2002) 2004/2 (2003) 2005/2 (2004) 2006/2 (2005) 2007/2 (2006) 2008/2 (2007) 2009/2 (2008) 2010/2 (2009) 2011/2 (2010) 2012/2 (2011) 2013/2 (2012) 2014/2 (2013) 2015/2 (2014) 2016/2 (2015) 2017/2 (2016) 2018/2 (2017) 2019/2 (2018) 2020/2 (2019) 2021/2 (2020) 2022/2 (2021) 2023/2 (2022) 2024/2 (2023) 2025/2 (2024) 2026/2 (2025) ✓ Net sales to reached 100 billion yen in FYE 2/22, driven by special demand associated with people staying at home during the COVID-19 pandemic ✓ Sales are expected to decline in FYE 2/23 and FYE 2/24 due to temporary special factors, while sales are expected to increase again from FYE 2/25 onward Company history and consolidated net sales trend ① Loss of sales to LINE Manga * Details are on page 45 ② Rebound decline from impact of large promotional campaigns by a certain large book retailer （Millions of yen） Digital Publishing Initiatives Japan Co., Ltd., became wholly owned subsidiary Became the leading eBook wholesaler Growth due to closure of major piracy website High growth driven by stay-at-home demand 106,000 (forecast) 1. Company Introduction Consistently developing businesses related to content since the company's inception 1994: CEO Yasushi Fujita started content distribution business while still in university 2000: Entered IT business 2004: Made a full-scale entry to the digital content (= copyrighted works) business, which requires rights licensing 2006: Developed “md-dc” content distribution system in-house and launched eBook distribution business 2013: Listed on Tokyo Stock Exchange Mothers (currently Growth Market) 2016: Changed the market to the First Section of the Tokyo Stock Exchange (currently the Prime Market) 2017: Acquired Digital Publishing Initiatives Japan Co., Ltd., and achieved the No. 1 position in the domestic eBook Distribution industry 2021:Capital and business alliance with major wholesaler TOHAN CORPORATION aiming to contribute to “print books,” which are the root of content, and became the largest shareholder Launched eBook Distribution business
7. 6 Net Sales Composition ✓ The Group’s core business is the eBook Distribution business. Promoting the Strategic Investment businesses to build a second earning pillars Full-Year Net sales for FYE2/ 25 ¥1,019*1 billion eBook Distribution business（¥93.8 billion／91.2%） ✓ Imprint business ✓ IP Solution business Strategic Investment business（¥8.9 billion／8.7%）*2 ✓ Global business ✓ FanTop business 1. Company Introduction *1 Including adjustments *2 Segment Composition as of the end of February 2025
8. 7 連結業績予想 Change in Strategic Investment Businesses Sub-Segment ✓ From FYE 2/26, the sub-segments within the Strategic Investment businesses were changed. Composed of businesses in areas of focus over the medium to long term ✓ Aim to increase synergy with the core eBook Distribution business and contribute to the Group's growth as a new earnings pillar at an early stage FYE 2/25 FYE 2/26 eBook Distribution business Strategic Investment businesses Adjustments and others TOKUSHIMA GAMBAROUS • Management of professional basketball team TOKUSHIMA GAMBAROUS • Audiobook content production and distribution • Production and distribution of summary and NFT content • Support for overseas development of Japanese content (print book and eBook) • Providing DX services to overseas publishers Businesses in the investment area that leverage our strengths Achieve profitability as early as possible and make it a new earnings pillar IP Solution business Imprint business FanTop business eBook Distribution business Strategic Investment businesses Adjustments and others Global business IP Solution business SC business Global business *FYE 2/26: Headquarters expenses only （Sustainability Creation） 1. Company Introduction
9. 8 Overview of Services by Business Segment IP Solution business eBook Distribution business Global business A publisher with a history of more than 70 years, working on a wide range of genres such as practical books, comics, novels, and magazines Handles coloring and drawing support for manga works of major publishers Operates "flier," a service that provides book summary content The largest domestic distributor that has transactions with more than 2,200 publishers and over 150 eBook retailers In-group outsourcing responsible for various operations related to the eBook distribution business U.S.-based subsidiary in San Diego handling overseas wholesaling Developing bibliographic information management, information distribution, eBook distribution, etc. in the U.S. Web marketing tool distributing sample books used by many U.S. publishers SaaS service supporting publisher websites and eCommerce platforms that widely used by European and American publishers MEDIA DO’s own NFT marketplace One of the largest eComic services in Japan with constant point return rate North American comic distribution with NTT DOCOMO Audiobook business SC business Management of the men's professional basketball club “TOKUSHIMA GAMBAROUS" Distributing the works provided on Amazon Audible Overseas Expansion IP creation and development／Planning and publishing Sustainability Creation Strategic Investment businesses 1. Company Introduction
10. 9 02 Medium-Term Management Plan MEDIA DO Co., Ltd. Materials for New Investors
11. 10 Objectives Outcomes （2018~） （2022~） （2025~） ✓ Integrated management, organization, and systems following the acquisition of Digital Publishing Initiatives Japan, aiming to become No.1 The 1st Mid-term Management Plan ✓ Aimed to diversify the business Promoting market evolution as a book distribution solution company Achieved performance targets ahead of schedule SC business (Sustainability Creation) 2. Medium-term Management Plan｜Review of the Medium-Term Management Plan Review of the Medium-Term Management Plan The 2nd Mid-term Management Plan The 3rd Mid-term Management Plan 30th anniversary of foundation ✓ Failed to meet targets for both sales and profit (1) Transfer of business from key partners (2) Dispersed management resources (3) Slower market growth ✓ Actively revised business portfolio 1 2
12. 11 1 2 SC(Sustainability Creation) business Evolution as a book distribution solutions company
13. 12 Unleashing a virtuous cycle of literary creation More Content for More People! 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company MISSION VISION Article 1, Chapter 1 General Provisions, Copyright Act of Japan The purpose of this Act is to provide for authors' rights and neighboring rights with respect to works, as well as with respect to performances, phonograms, broadcasts, and cablecasts, and to ensure protection for the rights of authors and other such persons while according attention to the fair exploitation of these cultural products, and thereby to contribute to cultural development. Delivering a wide range of domestic content through the eBook Distribution business
14. 13 Focusing on Japan and the World Unleashing a virtuous cycle of literary creation Update on our business concept As many people as possible As much content as possible to Phase 1 Phase 1 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company Striving to contribute to the development of Japanese culture and a prosperous society
15. 14 Phase1 : 1996 - 2024 Phase2 : 2025 - Unleashing Japanese books to the World A dominant position in the domestic publishing industry enables us to aggregate extensive content Evolving distribution solutions through technology to distribute domestic content globally MEDIA DO's mission is to distribute Japanese content to the world ✓ Number of distributed content: 2.6 mn ✓ Number of Partner Publishers：2,200 ✓ Gross transaction volume: ¥182 bn ✓ From 100 million people in Japan to 8 billion people around the world ✓ Expanding beyond manga to include text-based books and audiobooks As many people as possible to As much content as possible As much content as possible As much content as possible 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company
16. 15 2.6mn No.1 eBook wholesaler Number of eBook content handled by MEDIA DO eBook Features ✓ No physical storage required ✓ Accessible anytime ✓ Continuously increasing year by year ✓ Partnerships with 2,200＋ publishers ✓ Gathering of eBooks from all over Japan Approx. 20 years of history in eBook wholesaling Position 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company Our position in the publishing industry enables us to aggregate content from across Japan ✓ 30 years since founding, MEDIA DO now handles nearly all domestic eBook files ✓ The number of distributed eBooks exceeds 2.6 million and continues to grow each year
17. 16 75.0％ Manga 6.9％ Text-based book 2.6％ Magazine Promoting digitization of text-based books as well as manga Composition of eBook sales in the domestic publishing market* Aiming to accelerate digitization of text-based books and magazines in order to further increase the number of content 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company ✓ In Japan, the current eBook content is mainly manga ✓ By accelerating the digitization of not only manga, but also text-based content, MEDIA DO will increase the number of content handled in Japan and expand the base of Japanese culture that can be developed oversea
18. 17 電子書籍 Distribution & Marketing Current English translation rate of Japanese content* Manga translation rate 2% 0.5% * MEDIA DO estimates based on UNESCO “Index Translationum” and other publicly available information Japan Boosting the Text-based market Overseas Expansion into new markets Promote multi-use of domestic content and distribute it globally Web marketing tool for books Print books eBooks Audiobooks Domestic publishers Overseas publishers Libraries(print) Digital libraries(eBooks) Rate of new translations of text-based books in recent years eBook files Estimated translation rates for non-English languages are even lower 1 2 3 4 5 MDTS：MediaDo Translation System Multilingual translation and audiobook adaptation To countries around the world 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company ✓ If various types of books—including text-based books and magazines—are digitized, it becomes possible to adapt formats (print, digital, audio) according to local market environments and needs during global expansion
19. 18 Position (publisher relationship) Early establishment of a system for large-scale multilingual translation Top 10 languages cover over 70% of the world’s population (5.8 billion people) Order Language Population 1 English 1.531 billion people 2 Chinese 1.477 billion people 3 Spanish 516 million people 4 Arabic 447 million people 5 French 431 million people 6 Hindi 420 million people 7 Indonesian / Malay 306 million people 8 Portuguese 291 million people 9 Bengail 202 million people 10 Russian 146 million people Translators MEDIA DO’s Strength MDTS MediaDo Translation System Translation is essential for enabling multi-use of content 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company ✓ To enable the global distribution of content by leveraging multi-use of eBook files (epub), multilingual translation is essential ✓ MEDIA DO will establish a system that combines its strong position (relationships with publishers and a massive eBook database) with MDTS (MediaDo Translation System) to enable large-scale, multilingual translation
20. 19 Short turnaround time for multilingual translation Start with text translations and expand to manga in the future .etc Human power 2.6 mn eBook files Rights Licensing Licensing sales Domestic publishers Content Acquisition Translation Supervision Project Management Translate authorized materials MDTS MediaDo Translation System Data extraction from eBook files Translation Supervision System Output of file formats tailored to distribution AI (LLM) Real-time AI optimization system →p.20 In translation, we have built a system that makes full use of technology and human power 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company ✓ In translation, we not only optimize LLM in real time for each languages, but also build a system that maximizes the use of human resources such as translators. As long as the rights are licensed, eBook files can be translated into multiple languages in a short period of time
21. 20 Utilizing the power of technology to improve translation accuracy ✓ Each AI engine has its own characteristics in terms of translation accuracy, language fluency, consistency, and cultural appropriateness ✓ Languages such as English, Chinese, and Spanish also have unique features, and a single engine may not be optimal for all languages Optimization of multiple engines and languages is paramount Multiple Engines Multiple Languages MDTS MediaDo Translation System ✓ GPT-4.1 ✓ GPT-4.1 Nano ✓ GPT-4o ✓ GPT-4.5 ✓ Claude 3.7 Sonnet ✓ GPT-4o ✓ Gemini 2.0 Flash ✓ Gemini 2.5 Pro ✓ 04-mini ✓ o3 ✓ o3-mini etc. ✓ English ✓ Chinese ✓ Korean ✓ Spanish ✓ Arabic ✓ French etc. 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company
22. 21 Consignment sales system Unsold books can be returned ✓ In the U.S., the Outright purchase system is dominant in bookstores, making pre-release promotions crucial ✓ NetGalley is a web-based platform that distributes galleys (advance review copies) to book professionals in digital format, collects reviews, and provides marketing insights. In the future, the platform will expand its reach to general readers to broaden marketing scope Promoting Japanese content to overseas bookstores through NetGalley Japanese bookstores feature Enables booksellers to make purchasing (buying) decisions based on posted reviews and ratings For bookstores, Galley Reviews is important to purchase books and Galley distribution Review posting Overseas publishers Over 300 Booksellers and librarians Over 1 million Over 10,000 titles listed Galley Purchase Decision Outright purchase system Bookstores take inventory risk U.S. bookstores feature 2-1. Medium-term Management Plan｜Evolution as a book distribution solutions company
23. 22 1 2 SC(Sustainability Creation) business Evolution as a book distribution solutions company
24. 23 Building trust through respect and contributions to local communities has led to MEDIA DO’s greatest asset—its position in the industry SOCIETY INDUSTRY CONTENT Connecting values and continuing to contribute to the evolution of society MEDIA DO’s corporate philosophy embedded in its name ✓ Reducing energy use ✓ Increasing distribution speed ✓ Expanding the potential of content ✓ supporting the global expansion of Japanese content ✓ Contribution to the development of Japanese culture ✓ Resolution of social issues through co-creation with local communities 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business MEDIA DO has long engaged not only with the publishing industry, but also with society at large
25. 24 Creating content to reflect MEDIA DO’s multifaceted values People from all over Japan and the world Business Partners Current and future employees ✓ Kito Yuzu ✓ Entrepreneurial Support ✓ TOKUSHIMA GAMBAROUS Diverse content connected to MEDIA DO Value of regional communities Corporate identity Employees As many people as possible to As much content as possible As much content as possible As much content as possible Pursuing What Makes MEDIA DO Unique ✓ MEDIA DO has created diverse content rooted in regional culture and established a proven track record, effectively communicating our multifaceted values ✓ By showcasing our values through this content, we attract talent that resonates with our company culture and identity. This in turn allows us to continuously deliver value to stakeholders and strengthen our organization 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
26. 25 Share Ratio 1/3 Share Ratio 2/3 Tokushima Shimbun 2024-24 Season Number of Publications TV & Radio Track Record TV 96times Radio 44times 2024-25 season Ranked 9/17 teams Established by MEDIA DO and 22 leading companies in Tokushima Prefecture Operating companies： Otsuka Pharmaceutical, Nichia Chemical, etc. Finance：Awa Bank, Tokushima Taisho Bank Media：Tokushima Shimbun, Shikoku Broadcasting GAMBAROU TOKUSHIMA Co., Ltd., the management company of TOKUSHIMA GAMBAROUS Days Number of articles 122 165 /213 /213 57% 77％ 2023-24 season Ranked 4/18 teams TOKUSHIMA GAMBAROUS, which was launched from scratch, involves the community and creates enthusiasm ✓ In April 2022, Tokushima Prefecture's first men's professional basketball team, the TOKUSHIMA GAMBAROUS, was established. Six months later, in October, they made their first entry into the 2023-24 season ✓ Despite starting from scratch, the company has gained fans from a wide range of people, regardless of age or gender, by increasing its media exposure, including publication in local newspapers 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
27. 26 Number of fan club members Number of visitors Avg. number of visitors per game Total number of visitors Net sales / Operating profit （Billions of yen） （Person） （Person） Number of Sponsors （Companies） 2023-24 2024-25 2023-24 2024-25 48 130 2023-24 2024-25 （見込） 1,297 1,555 33,732 40,430 2023-24 2024-25 882 2025-26 1,310 561 Early Enrollment Conducted for 2 days only Net sales 5.52mn Net sales 11.83mn Net sales 9.14mn Net sales Operating profit 0.18 0.44 -0.07 0.02 Achieved profitability in the second year TOKUSHIMA GAMBAROUS achieved early profitability in the second year of entry ✓ TOKUSHIMA GAMBAROUS has gained fans from a wide range of people, regardless of age or gender, by involving the local community ✓ It generated a great deal of enthusiasm in Tokushima Prefecture, and as a result, it achieved profitability in its second year of entry into the B3 League 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
28. 27 Established in collaboration with major institutions that gather local issues Five companies established Tokushima Shimbun, Shikoku Broadcasting (media) Awa Bank, Tokushima Taisho Bank (financial institution) MEDIA DO 114 358 21 60 Under the theme of "The Future of Local Education from a Global Perspective," three distinguished panelists and moderator Fujita, the representative director of TIB, will discuss local education from a global perspective and a parent's perspective In 2020, TIB was established from scratch to foster and support entrepreneurs Five full years have passed, and we are entering the 2nd phase Embodying the idea of "Let's change Japan from Tokushima" Collaboration Agreement Tokushima Prefecture, Tokushima City University Collaboration The University of Tokushima Number of members Number of companies/companies born out of TIB Cumulative number of monthly meetings Number of active members Total number of members Free members included By May 2025 Expanded monthly meeting held on May 23, 2025; 652 participants (164 students, incl. elementary to university) (Theme) The Future of Local Education from a Global Perspective Supported by: Awa Bank, Tokushima Taisho Bank, MEDIA DO Supported by: Tokushima Prefecture, The University of Tokushima Tokushima Innovation Base (TIB) enters its second phase after five full years since its establishment ✓ TIB is a general incorporated association that fosters and supports entrepreneurs, working people, students, and people with entrepreneurship in Tokushima ✓ In collaboration with the EO (Entrepreneurs Organization), one of the world's leading entrepreneurial organizations with more than 19,000 entrepreneurial members in 61 countries boasting annual sales of more than 100 million yen, we will utilize a system for managers to learn and grow themselves, and to revitalize and deepen cooperation with the local community 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
29. 28 TIB evolves into a nationwide scale as xIB JAPAN In 2023, xIB JAPAN was established Launched nationwide innovation-based support Prefecture Launched 1 TIB（Tokushima） 2020/5 2 IIB（Iwate） 2020/7 3 SIB（Shizuoka） 2021/5 4 NIB（Nagano） 2021/7 5 YNIB（Yamanashi） 2021/10 6 CIB（Chiba） 2021/10 7 KIB（Kyoto） 2021/10 8 NIIB（Niigata） 2021/11 9 EIB（Ehime） 2022/4 10 KOIB（Kochi） 2022/4 11 WIB（Wakayama） 2022/5 12 KUIB（Kumamoto） 2022/9 13 HIB（Hiroshima） 2023/4 14 TOIB（Toyama） 2024/7 15 KGIB（Kagoshima） 2024/7 16 OIB（Okinawa） 2025/6 17 GIB（Gifu） 2025/9 18 OKIB (Okayama) 2025/10 19 TCGIB (Tochigi) 2025/11 20 KAIB (Kagawa) 2026/2 to24IB Nationwide locations by the end of 2026 15IB established Currently nationwide 2025 and beyond 5IB to be established (scheduled) 4IB is scheduled to be established by the end of 2026 ＋ ✓ IB (Innovation Base) is a way to support entrepreneurs for the future of the region, and TIB's efforts are expanding nationwide ✓ By 2025, another 5 IBs are expected to be established, with 20 IBs nationwide. Nationwide IB adoption rate has reached 50% 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
30. 29 January 23, 2025 Tokushima Shimbun January 25, 2025 Tokushima Shimbun Participants from a wide range of fields including business, government, finance, education, media, artists, and students from Japan and abroad January 24, 2025 Participants Jointly sponsored by Tokushima Prefecture's Version of the Davos Conference Uzushio Summit was held Supported by 150 Speakers in total 25 Initiated and Hosted the "Uzushio Summit," Tokushima’s Version of the Davos Conference ✓ Held under the theme of "The Spirit of Japan from a Global Perspective” ✓ A forum for discussing how Japan is viewed from the world and rediscovering/redefining regional potential and content 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
31. 30 Central International Creating opportunities to discover and deliver local potential and accumulate trust in MEDIA DO Not "From Central to Regional," but "From Regional to Central & International" Regional Promoting the attractive potential and content of local regions to central and international markets Rediscovering and redefining local potential and content The Spirit of Japan from a Global Perspective Business from Regions Environment Generate confidence and strength in local communities Education Culture and Arts Discuss the future of regions on a global scale across four themes: Rediscover and redefine the value of regional potential and content – drive a change in values ✓ Through global dialogue under the theme "The Spirit of Japan from a Global Perspective,“ we aim to rediscover and redefine the potential and content of Japan’s regions and empower local communities ✓ By creating opportunities for these value shifts to flow from local to central and international audiences, MEDIA DO will build trust 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
32. 31 A strong relationship value with MEDIA DO is formed Business partners Employees Future employees ✓ Throughout its 30-year history, it has always confronted current trends and society, and has made efforts to solve problems centered on local communities ✓ The SC business (Sustainability Creation) embodies the underlying values that have been consistent since the company's founding and the “Uniqueness of MEDIADO,” and through these activities, we continue to build relationships of trust with stakeholders, including our own employees, which is essential to our continued existence as an organization and to continue to provide value ✓ An indispensable initiative for MEDIA DO to continue to exist as an organization and to continue to provide value Incorporating social sustainability into management MEDIA DO's identity is transmitted in a multifaceted manner Initiatives to solve issues in local communities Kito Yuzu Entrepreneurial Support TOKUSHIMA GAMBAROUS We can create even more new value Ensuring MEDIA DO’s Continuity for the Next 100 Years 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
33. 32 Phase1 : 1996 - 2024 Phase2 : 2025 - Published Content Bringing Japanese Culture to the World Domestic As many content as possible As many people as possible to Diverse content connected to MEDIA DO Value of regional communities Corporate identity Employees People from all over Japan and the world Business Partners Current and future employees Expanding the potential of content and bringing Japanese culture rooted in the region to the world 2-2. Medium-term Management Plan｜SC(Sustainability Creation) business
34. 33 03 eBook Distribution Business MEDIA DO Co., Ltd. Materials for New Investors
35. 34 64,529 82,349 99,309 94,331 86,448 93,818 Consolidated net sales trends （Millions of yen) eBook Distribution business eBook Distribution business, special factors*1 FYE 2/25 (forecast) FYE 2/27 FYE 2/26 97,600 *1 Total amount reflecting net sales to LINE Manga and impacts of large promotional campaigns by a certain large ebook retailer in FYE 2/21 FYE 2/19 FYE 2/20 FYE 2/22 FYE 2/23 FYE 2/24 2. Continued growth of the eBook market 3. Potential for expansion of eBook distribution share 4. Initiatives to expand market share • The strong relationship of trust we have built with the publishing industry • Approximately 30% of eBook distribution is via MEDIA DO • About 50% of eBook Distribution is direct transactions without eBook distributors • In the past 20 years, the share has gradually shifted from direct transactions to through distributors • Strengthening of advanced support based on system integration and accumulated know-how • Accelerating digitalization of text-based content with low eBook adoption Decrease due to transfer of LINE Manga *Details are on page 45 Entering growth phase again from FYE 2/25 High growth driven by stay-at-home demand Net sales excluding special factors continue to grow steadily each fiscal year ✓ Steady growth in sales every fiscal year, excluding transient factor of sales decline (*Details are on page 45) ✓ Achieve sales growth by expanding the eBook market as well as by aiming to increase MEDIA DO's market share 3. eBook Distribution Business｜Business Highlights 1. The one and only position • Although the growth rate will slow down, the expansion trend will continue • There is still much room for digitization, especially for text-based books P.35-36 P.37-38 P.39-41 P.42-43 Sales will return to an upward trend from FYE 2/25 as the transient factors of sales decline are eliminated
36. 35 ✓ MEDIA DO’s core business: Creating trust that enables the distribution of official content ✓ The strong relationship of trust we have built with the publishing industry is our one and only position and strength. Japan's largest eBook distributor that supports content distribution with technology eBook retailers 150+ Publishers 2,200+ Building strong relationships with the publishing industry The one and only position is MEDIA DO's greatest strength ✓ Development and provision of systems ✓ Campaign Management ✓ Bibliographic information management ✓ Revenue sharing ✓ Campaign Management 2.6 million eBook content 3. eBook Distribution Business｜The One and Only Position The One and Only Position (1): The strong relationship of trust we have built with the publishing industry
37. 36 ¥620bn*2 User market size eBook retailers 電子書籍流通事業 *1 Calculated by dividing MEDIA DO’s forecast gross transaction value for FYE 2/25, by the total transaction value for the market as a whole *2 Source: eBook Marketing Report 2024, Impress Research Institute eBook market size in FY2022 (total of comics, text, etc.) Among eBook distributors, MEDIA DO’s gross transaction value in FYE 2/25 was approximately ¥182 bn Publishers ①via distributors ②Publishers → eBook retailers direct ③Publisher-owned eBook retailers Authors/Creators Approximately 40％ Approximately 50％ Approximately 10％ 3. eBook Distribution Business｜The One and Only Position The One and Only Position (2): Approximately 30%*1 of eBook distribution is via MEDIA DO
38. 37 1,013 1,411 1,826 2,278 2,556 3,122 3,750 4,821 5,510 6,026 6,449 6,765 7,077 7,399 7,710 8,046 2027 (forecast) 2026 (forecast) 2025 (forecast) 2023 2022 2021 2019 * Source: eBook Marketing Report 2024, Impress Research Institute 2020 2018 2017 2016 2015 2014 2013 2024 (forecast) ✓ The eBook market has expanded significantly since 2012, when users shifted from feature phones and PCs to smartphones. The market size expanded to approximately ¥640 billion in FY2023, partly due to the special demand caused by COVID-19 ✓ Although the future growth rate will slow down as the market size expands, the expansion trend will continue, and the market size is expected to grow to approximately ¥800 billion by 2028 3. eBook Distribution Business｜Continued growth of the eBook market 2028 (forecast) Changes in the size of the domestic eBook market* （Billions of yen） CAGR：16.0% CAGR：4.5% ＋150.0bn Continued growth of the eBook market (1): Continuously expanding domestic eBook market
39. 38 Comics total 659.4 （77.7%） 512.2 Text-based books total 613.0 Magazines total 299.3 （2.9%） 8.6 （7.4%） 45.2 In the publishing markets of the U.S. and China, the eBook share for text- based books is around 30-40% * AJPEA statistics classify 90% of comic books in the “magazine” category. In the graph above, comic books classified as magazines in this way are counted as “comics.” Additionally, comic sales include only comic books (both print and digital), while comic magazines (both print and digital) are included in the “magazines” category. (Source: All-Japan Magazine and Book Publishers and Editors Association (Source: AJPEA) Publishing Market Size by Genre in 2024 147.2 567.8 290.7 +2.7% from the previous period ✓ Comic market digitization rate increased 2.7% YoY to 77.7% ✓ In the publishing markets of the U.S. and China, the eBook share for text-based books is around 30-40%, indicating significant room for digitization of text-based books in Japan （Billions of yen) 3. eBook Distribution Business｜Continued growth of the eBook market Continued growth of the eBook market (2): Publishing market size by genre +0.5% from the previous period +0.3% from the previous period
40. 39 Sales of print books Sales of eBooks Distribution of royalties Only at the time of first publication or additional printings Monthly occurrence indefinitely (due to unlimited copies) Sales price Cannot be discounted (resale price maintenance system) Discountable (freely adjustable) Sales format Unit sales (selling by volume) Also possible to distribute by episode Sales strategies have become more diversified and complex ✓ Unlike the distribution of print books, the distribution of eBooks does not require large logistics warehouses or delivery services. However, due to its unique characteristics, the operation has become more complex, making it an indispensable part of the industry ✓ As the market expands, the operational burden on publishers and eBook retailers is increasing, thereby making distributors indispensable Campaigns and other initiatives to boost sales are possible 3. eBook Distribution Business｜Potential for expansion of eBook distribution share Potential for expansion of eBook distribution share (1): Necessity of distributor based on the characteristics of eBooks
41. 40 ✓ In the dawn of the eBook market, 100% of transactions were direct, but due to the increased operational burden caused by the expansion of the eBook market, approximately 40% of transactions are now conducted through distributors ✓ Publishers and eBook retailers use both distributors and direct transactions depending on the supply chain. Therefore, even with existing transactions, there is ample room to expand the share of distributors with publishers and eBook retailers The present Publisher eBook retailer via distributors (approximately 40%) Distributors such as MEDIA DO The dawn of eBooks late 1990s to early 2000s Publisher eBook retailer direct transactions (100 %) MEDIA DO already has transactions with almost all publishers and eBook retailers that handle eBooks, and has access to them Shifted to via distributors as the operational burden increased with the expansion of the eBook market eBook retailer A via distributors via distributors direct transactions direct transactions via distributors Various sales channels (Image diagram) Publisher A Publisher B Publisher C eBook retailer B eBook retailer C direct transactions (approximately 50%) 3. eBook Distribution Business｜Potential for expansion of eBook distribution share Potential for expansion of eBook distribution share (2): Steadily growing share of eBook sales through distributors
42. 41 Even major eBook retailers face resource crunch due to increased operational burden Acquisition of sales distribution channels of major eBook retailers The need for intermediary distribution (wholesaling) is becoming more crucial Promote purchasing by strengthening sales measures (campaigns, episode distribution, etc.) for continuous sales growth ✓ Professional distributors reduce operational burdens and accelerate execution ✓ Proposal and implementation of sales measures based on market trends and knowledge Background of the acquisition of the distribution channels of major eBook retailers 57.4 75.1 116.3 176.6 182.0 219.2 260.3 Number of campaign contents (ten thousands) Campaign content volume increased 4.5× over six years ✓ Strengthening sales measures (campaigns) for continuous growth is becoming more complex and diverse, and the burden on publishers and eBook retailers is increasing more than the market growth ✓ The burden of campaigns is also increasing at major bookstores and publishers, and the need for distributors is increasing further from the perspective of efficiency and sales growth ✓ In February 2024, we acquired part of PICCOMA’s distribution line, and system integration was completed in September ✓ Plans to acquire part of Mecha Comic’s distribution line in July 2025 FYE 2/19 FYE 2/20 FYE 2/21 FYE 2/22 FYE 2/23 FYE 2/24 FYE 2/25 3. eBook Distribution Business｜Potential for expansion of eBook distribution share Potential for expansion of eBook distribution share (3): Resource challenges intensify even for major distribution channels
43. 42 Publishers eBook retailers Operational burden increased in direct transactions due to the expanded eBook market and increased number of promotional campaigns Secure internal resources and understanding of each company’s operations Risk of distribution accidents • Development of new systems that meet current trends are linkage of core systems • Advanced support based on our accumulated know-how as a specialized wholesaler Focus on improving operation efficiency and marketing policies, etc. Reduce the distribution accident rate Aim to acquire new sales channels following the acquisition of new sales channels in February 2024 Initiatives to expand market share (1): Solving issues in eBook distribution 3. eBook Distribution Business｜Initiatives to expand market share ✓ As the eBook market expands and the number of campaigns increases, the operational burden of eBook Distribution increases year by year. ✓ In eBook distribution, there are significant challenges, such as securing internal resources and the risk of distribution accidents ✓ We solve issues by providing detailed support based on our accumulated know-how through system development and linkage. We aim to further expand our market share amid the expansion of MEDIA DO's contribution value with market growth
44. 43 75.0% 6.9% 2.6% マンガ テキスト 雑誌 →Invest in digital versions, audio editions, and translations of text content to further market growth ✓ Around 40% of new releases are also published as eBooks ✓ Simultaneous release of print and eBook (simul-publication) is still limited outside manga The digitization of texts is still in progress 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 The potential of manga has been demonstrated and reviewed by digital manga Print manga Digital manga （Billions of yen） ✓ The domestic manga market, which had been shrinking since 2001, grew again due to eBooks, reaching a record size in 2024 ✓ In contrast, while text-based content still has low digital share, digitalization of text can lead to greater market diversity, including audiobooks and translated works Trends in the Manga Market* 2023 eBook sales breakdown by genre (Percentage of eBooks in the total of print + digital) 2000 2003 2006 2009 2012 2015 2018 2021 2024 Manga Text-based book Magazine 3. eBook Distribution Business｜Initiatives to expand market share Initiatives to expand market share (2): Accelerating digitalization of text-based content with low eBook adoption
45. 44 Image diagram of sales and cost structure *This is only an image, including figures, to promote understanding and may not necessarily show the actual situation Net sales 60 100 MEDIA DO Publishers eBook retailers 50 Our Gross profit 10 Structure of sales and cost of sales in the eBook Distribution business (image) 3. eBook Distribution Business｜Reference Materials ✓ If bookstore sales are 100, 60 is transferred to MEDIA DO, including copyright fees and royalties to authors/creators and publishers ✓ MEDIA DO records 60 as net sales and 10 as gross profit, excluding copyright fees and royalties paid to authors/creators and publishers
46. 45 Net sales to LINE Manga* by fiscal year 19.0 FYE 2/22 2.0 13.0 FYE 2/23 FYE 2/24 ▲6.0 ▲11.0 billions of yen FYE 2/25 There will be no impact from FYE 2/25 onward About LINE Manga Transfer ✓ Due to the integration of Yahoo Japan Corp. and LINE Corp., the distribution of eBooks for LINE Manga, which had been a major business partner, was transferred from MEDIA DO to eBook Initiative Japan Co., Ltd., an eBook retailer of a Yahoo Japan subsidiary ✓ Completed transfer of back-end operations of major publishers in December 2022, resulting in a revenue decline of approximately ¥6.0bn in FYE 2/23 and approximately ¥11.5bn in FYE 2/24. ✓ There will be no impact from FYE 2/25 onward due to the transfer. The remaining sales to LINE Manga, which are expected to amount approximately ¥2.0bn, will continue going forward (Sales of content from publishers that have exclusive contracts with MEDIA DO ) 3. eBook Distribution Business｜Reference Materials * Figures given are for net sales to LINE Digital Frontier Corporation, which operates LINE Manga. 2.3
47. 46 FYE 2/24 FYE 2/25 ¥86.4bn* ¥93.8bn* *(Prepared based on information provided in financial results) Sales of eBook Distribution business are shown Status of Transactions with Major Customers 3. eBook Distribution Business｜Reference Materials Amazon Services International Inc. NTT Solmare Corp. Others 28.0％ （¥24.1bn） 17.2％ （¥14.8bn） 54.8％ （¥47.3bn） 100% 0% 28.6％ （¥26.8bn） 17.1％ （¥16.0bn） 54.3％ （¥50.9bn）
48. 47 0 1 2 3 4 5 6 7 2020/1 2020/7 2021/1 2021/7 2022/1 2022/7 2023/1 2023/7 2024/1 2024/7 2025/1 the situation has calmed down as the closure of multiple sites and other measures have proven effective *Pirate sites are changed monthly. The top 10 sites include those with non-publication content Source: General Incorporated Association ABJ Citation: https://www.abj.or.jp/data (in Japanese only) （Unit: billion） Closure of “Manga Bank” on November 4, 2021 Total accesses exceeded 400 million. 4 times that of “Manga- Mura” at its peak Government 430 million budgeted to promote anti-piracy measures and protect the foundations of the content industry Closure of several large sites Several large sites appear Mass closure of Vietnamese sites ABJ Promote the distribution of legitimate content through educational activities A private organization dedicated to protecting the rights of copyrighted works ✓ At the time of the establishment of the organization, Niina, then Vice President of the Company, was appointed as Representative Director ✓ Mrs. Hanamura, COO of the Company, is currently a member of the Board of Directors Through strengthened measures led by both the public and private sectors, the trend has shifted to a decline Main initiatives to date (1) STOP! Piracy Campaign (2) Cooperation with search operators (3) Utilization of pirate sites list (4) Demonstration of site detection using AI Expand globally, on TikTok, etc. Awareness in search results with Google, Yahoo! Providing security vendors 300 million yen in additional budget to strengthen measures 3. eBook Distribution Business｜Reference Materials Trends in the total number of accesses to the top 10 sites for pirated publications for Japan* Trends in Piracy Websites ✓ Towards the end of 2024, a major piracy site grew significantly, recording the worst-ever access numbers. However, the shutdown of multiple sites, including the top-ranking one, was successfully carried out, leading to a decline └The Agency for Cultural Affairs has included an additional ¥300 million for related projects in a supplementary budget proposal, in addition to the ¥130 million budget for FY2024. The public and private sectors are working together to strengthen the measures the worst-ever access numbers
49. 48 04 Strategic Investment Businesses MEDIA DO Co., Ltd. Materials for New Investors
50. 49 Strategic Investment Businesses / Trends in Operating Profit From the investment phase to the profit-generation phase ✓ Achieve not only an increase in net sales, but also an increase in profits. Aim to achieve an ROE of 10% quickly ✓ The amount of loss in the Strategic Investment businesses decreased as each business made steady progress. Promote businesses with the aim of achieving a quick transition from the investment phase to the profit-generation phase Millions of yen Each of the Strategic Investment businesses is gradually entering into the profit- generating phase, with the amount of loss steadily decreasing 4. Strategic Investment Businesses｜Business Highlights -832 -1,462 -1,291 -965 -420 78 824 22/2期 23/2期 24/2期 25/2期 26/2期 27/2期 28/2期 29/2期 30/2期 FYE 2/28 FYE 2/29 FYE 2/30 FYE 2/22 FYE 2/23 FYE 2/24 FYE 2/25 FYE 2/26 FYE 2/27 * Actual results for FYE 2/25 are calculated based on the new sub-segment; operating profit/loss based on the old segment as in FYE 2/23 and FYE 2/24 is -¥994 million. Global business IP Solution business Achieved profitability in multiple businesses, including flier and audiobook, and entered the profit-generating phase Providing a one-stop solution to maximize revenue opportunities for publishers and expand their business Audiobook business SC business The men's professional basketball club “TOKUSHIMA GAMBAROUS" achieved early profitability and continues to enhance profits, social trust, and recognition Capture the growing demand for Japanese content around the world and accelerate business expansion
51. 50 1 2 IP Solution business Global business 3 SC business
52. 51 国際事業 ERP (integrated publication data management and analysis) tool Web marketing tools for books In-house EC system construction tool for publishers An overseas DX service with the five major US publishers as clients Offering comprehensive services from translation to distribution, utilizing local publishing know-how Capturing the growing global demand for Japanese content and accelerating business expansion Supporting the global expansion of Japanese content Providing overseas publishing DX services 4-1. Global business｜Publishing DX Service Providing DX services to publishers in Europe and North America and supporting the global expansion of Japanese content (1) Overseas distribution (4) Copyright Management (3) Distribution (6) Promotion (2) Translation (5) Store support ✓ The MEDIA DO Group provides solutions to support the distribution and sale of content overseas ✓ Offering DX solutions to 300+ publishers including the five major publishers in the U.S., through a SaaS-type business model ✓ Aiming for further expand the number of publishers who have introduced the system, including small and medium-sized publishers in the future
53. 52 Trend in net sales FYE 2/25 FYE 2/24 FYE 2/23 FYE 2/22 2,049 2,453 Supadü Consolidated（2Q）* (millions of yen) 1,052 Firebrand NetGalley Consolidated（2Q）* 国際事業 ✓ Providing DX services using a SaaS-based business model to publishers in Europe and North America, including the five major United States publishers ✓ Expecting to increase sales and profits in FYE 2/25, following FYE 2/24 DX support for publishers Net sales increased approx. 13％ 4-1. Global business｜Publishing DX Service Sales and profits are on an upward trend due to an increase in the number of corporate subscribers. Aiming to expand market share in the future ✓ Provides manuscripts of works in digital data format. Service for booksellers, librarians, and readers that can be used for review submission, book promotion, and book selection ✓ Annual churn rate is 3% ✓ Centralized management of the entire publishing workflow from editing, production, marketing, public relations to sales management ✓ Annual churn rate is 0% ✓ Provide “Supafolio”, a metadata management platform that allows users to easily and inexpensively build websites that can directly sell their own books (paper and electronic) linked to bibliographic information ✓ Annual churn rate is less than 3% Web marketing tools for books ERP (integrated publication data management and analysis) tool In-house EC system construction tool for publishers ✓ FYE 2/24: Increased in sales and income due to an increase in the number of corporate contracts ✓ FYE 2/25: Expect to increase both sales and income *Since the consolidation started in 2Q, sales are reflected for 9 months of each year 2,787
54. 53 657 754 869 1,022 1,191 1,403 1,671 2,010 2,442 2,995 3,707 4,628 5,831 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ✓ The U.S. comic market is expected to expand to a scale of 580 billion yen by 2030, against the backdrop of the growing popularity of Japanese content. The need for publishers and eBook retailers to enter overseas markets is increasing ✓ On the other hand, the lack of expertise in distribution overseas have become issues for publishers and eBook retailers to enter overseas markets Trends in the size of the North American manga market ✓ It is expected to reach 580 billion yen—about 4.2 times the current amount—by 2030, and significantly exceed the market size of Japanese electronic comics, which was approximately 480 billion yen in 2023 ✓ There are around 14,000 English translations of Japanese comics, which is less than 2% of the total, meaning there is vast room for market development On the other hand, there are issues in developing content for overseas markets The comic market in North America is expanding Growing demand for overseas development of content, including text-based books 4.2 times Lack of know-how for distribution overseas 1. Lack of contacts with overseas publishers 2. Lack of marketing channels to bookstores 3. Difficulty in gaining recognition among readers While the expansion of overseas markets has increased the demand for overseas content development, there are also challenges (billions of yen) Source: Japan External Trade Organization, "U.S. Market Report on Anime-Related Services and Products (Analysis Report Based on Interviews with U.S. Experts, etc.)," calculated at 1 dollar = 150 yen 4-1. Global business｜Supporting the global expansion of Japanese content
55. 54 ✓ In addition to translation, we will support the development of overseas works by domestic publishers, which is expected to increase in the future, by providing integrated functions based on local publishing know-how Domestic publishers Overseas publishers Overseas eBook retailers (print / digital) Overseas users Buying and selling copyrights Translation / Publication Translation / Distribution sale By providing a full range of functions, we support the overseas exports of small/mid-sized publishers who do not have the resources or know-how Operation of “MANGA MIRAI”, NTT DOCOMO's eComic store for North America, launched in March, distribution of the initial 780 titles/over 11,000 volumes of manga works, and translation support Comprehensive support from translation to media mix of “Tokyo Swindlers” by Shueisya that Ranked first in Japan for Netflix series, and in the top 10 in 14 countries around the world, mainly in Asia (5) Examples of store support (2) Examples of Translation Domestic eBook retailers (print / digital) Domestic users Distribution sale Delivery (1) Overseas distribution (2) Translation 2.6 million content Positions that can be supplied domestically by publishers -> can be exported abroad 18,664 items have already been exported Support using advanced technology Firebrand Network (4) Copyright Management (5) Store support Special Sponsorship of the TOKYO RIGHTS MEETING Content Procurement and Knowledge Provision (3) Distribution Leveraging NetGalley (6) Promotion 4-1. Global business｜Supporting the global expansion of Japanese content Increasing the speed of development through comprehensive support to further accelerate the increase in overseas demand
56. 55 Promoting Japan’s publishing presence globally The largest Frankfurt Book Fair in the world ・Visitors: 230,000 ・Number of participating countries: 153 ・Number of exhibitors: 4,300 Held annually by the Japan Foundation for the Promotion of Publishing and Culture Industries (JPIC), this is a place for domestic publishers and overseas publishers to negotiate the purchase and sale of copyrights ✓ Even after the conclusion of the Tokyo International Book Fair in 2016, MEDIA DO has continued to cooperate by providing a venue for the TOKYO RIGHTS MEETING ✓ In 2025, we will participate in the TOKYO RIGHTS MEETING as a special sponsor to increase the presence of Japan content overseas Participates as a key sponsor of the TOKYO RIGHTS MEETING Our efforts to connect publishers in Japan and overseas Tokyo International Book Fair ended in 2016 Japan is the only major Asian nation without an international book fair 4-1. Global business｜Reference Materials
57. 56 1 2 IP Solution business Global business 3 SC business
58. 57 Maximize publisher profits with a one-stop solution Reflect the user’s needs ✓ In addition to creating appealing content, we maximize the value of content by distributing it in a form that matches the current trends, and play a role in expanding the possibilities of content Provide appealing content Content Reflect the publisher’s needs eBooks （eBook Distribution business） Audio （Audiobooks） Summaries （flier） NFT （FanTop） Full-color manga （ARTRA ENTERTAINMENT ) Distribute content in formats that match consumer trends Domestic publishers Deliver value with a one-stop solution especially to small/mid-sized publishers with limited resources 4-2. IP Solution Business｜Business Overview
59. 58 • Weekly Manga Goraku • Manga TOP • Comic Heaven Smiley A blockbuster hit with over 4.0 million copies sold in total Double Play Bludgeoning Pink - Sex Offender Executioner Gannibal Serialized in Weekly Manga Goraku from October 2018 to December 2021 (completed in 13 volumes). It gained popularity as a suspense work featuring cannibalism, set in a certain marginalized community Dramatized by Disney Plus Numerous other works have also been adapted into visual media Hitman from today Adapted into a drama on TV Asahi in October 2023 are currently serializing many popular works ✓ Contribute to the expansion of the content market by creating numerous original works and promoting media mix strategies in the future Produced many hit contents centered on the weekly manga Goraku, which has been running for 60 years The film adaptation was released in December 2022. As the original work gains renewed attention, premiered exclusively on Disney+ 'Star' on March 19, 2025 (starring Yuya Yagira). 4-2. IP Solution Business｜Business Overview Demon City February 2025 Exclusively available on Netflix 「Demon City Oni Goroshi」 Dr. Ashura April 2025 Adapted into a Fuji TV drama
60. 59 ✓ Soaring printing and transportation costs and a trough in hit content caused poor performance ✓ Former TAKESHOBO Co., Ltd. director Mr. Takemura, who has extensive experience in the publishing industry, was appointed as representative director Digital Growth in content sales due to strengthened relationships with each store ✓ Renewal of contracts with authors for the implementation of agile campaigns ✓ Original new series based on electronics ✓ Rediscovery of past works Up to FYE 2/25 Infrastructure maintenance FYE 2/26 onwards Foundation in place, entering growth phase Print Adjusted print volume to rebuild a lean profit structure Reforms in digital and print are underway, laying the groundwork for future growth March 2025 New Web Serialization SiteGoraku-uebu! Launch Produce a large number of appealing content and link it to IP multi-use centered on visualization ✓ The change of representative directors establishes a foundation for future breakthroughs. Aiming to expand business performance by producing a large number of attractive content by taking advantage of its content creation capabilities, which have produced a large number of content suitable for visualization 4-2. IP Solution Business｜NIHONBUNGEISHA NIHONBUNGEISHA has completed the development of its foundation and is entering recovery phase
61. 60 ・・・ *2 ✓ In 2024, the audiobook market in the U.S. exceeded the eBook market for the first time. Users have been expanding in Japan in recent years due to the spread of smartphones ✓ MEDIA DO has been participating in the audiobook business since 2020. Sales have been growing as we act as the main contact between Audible and publishers, backed by a proven track record of distributing works ✓ Content in audio format with readings of books by narrators and voice actors ✓ The market has been expanding worldwide in recent years due to its benefits, such as being able to listen while doing other things, putting less strain on users’ eyes, and being able to experience a sense of reality with professional readings About Audiobook The audiobook market in the U.S. is growing year after year ✓ Market size forecast for 2024 is approximately 539.4 billion yen* ✓ The market size exceeded that of the eBook for the first time in the period from January to August in 2024 ✓ Approach to Amazon users ✓ Aggressive advertising through TV commercials, etc. Membership in Japan to nearly double in two years by the end of 2023 *1 Statista, 3.408 billion dollars (calculated at 155 yen to the dollar) *2 Audible and the Audible logo are trademarks of Audible, Inc. or its affiliates. The largest market share in the industry MEDIA DO's audiobook business sales tripled in FYE 2/25 compared to the previous There is a limit to the number of domestic publishers they can approach on their own Business base of over 2,200 publishers In Japan Negotiating permissions for audio recording Providing works Publisher A New contracts Publisher B Publisher C MEDIA DO's audiobook business is growing based on its strong partnership with Audible, an Amazon subsidiary ✓ Acquisition of content (acquisition of permissions for audio recording) ✓ Co-production of audio files Main contact Responsible for dealing with and acquiring content from almost all new publishers 4-2. IP Solution Business｜Audiobook business
62. 61 -51 -114 -267 -271 -136 2 99 251 415 516 634 785 948 1,120 (forecast) ✓ Entering FYE 2/25 phase after reinvestment from FYE 2/19, operating profit is expected to improve significantly in this fiscal year due to the expansion of toB services ✓ Capturing the needs of corporate human resource development, the cumulative number of corporate contracts exceeds 1,200 ✓ Sales to corporate customers have almost doubled in the last two years, and the business will now enter a phase of generating profits Focusing on toC Strengthening toB Expanding target from the summary content market to the human resource development service market Building relationships with HR departments of corporate clients to expand summary content services Ordinary profit Net sales(toB) Net sales(toC) Millions of yen Trends in Sales and Ordinary Profit ▼Listed on TSE Growth on February 20, 2025 toB service is growing ▼Joined the MEDIA DO Group ▼Moved to reinvestment phase Expansion of customer base, especially large corporations Development of new services approaching the human resource development service market Book summary service Organizational growth support services Accelerate further growth by expanding customer base and service areas Profit generation phase FYE 2/17 FYE 2/18 FYE 2/19 FYE 2/20 FYE 2/21 FYE 2/22 FYE 2/23 FYE 2/24 FYE 2/25 FYE 2/26 4-2. IP Solution Business｜Flier Aiming to accelerate growth by expanding customer base and service areas after listing
63. 62 FanTop Users Users can acquire NFT digital content (digital items, music/sound, video, eBooks, etc.) by scanning the QR code attached to the paper book NFT digital content Buy, sell Scan the QR code Business model based on royalty distribution, specializing in digital content not for speculative purposes Model of Contents （FanTop） Model of Arts ・Multiple ・Hard to be speculative ・One of a kind ・Speculative The acquired NFT digital content comes with ownership rights, so it can be collected and viewed, and shared, transferred, and bought or sold among users (secondary and subsequent trading) Feature ① Feature ② Feature ③ “FanTop”, an NFT marketplace developed and operated in-house by MEDIA DO Launched October 21, 2021 4-2. IP Solution Business｜FanTop business
64. 63 ✓ The total number of copies issued of publications with NFT digital benefits, which NFT digital content is attached to paper books lined up in real bookstores, has exceeded 2.85 million* ✓ Since an increase in cumulative circulation will contribute to an increase in the number of circulated contents and members, we will focus on approaching magazines with high circulation in the future. GRADUATiON BiSH Shukan Manga Goraku Ryoko Hirosue essay mini Dec. A special NFT benefit was granted in which the author reads seven carefully selected essays from the main essay Released in April 2022 TAKARAJIMASHA, Inc. Converted footage from the last interview of the members on the night before their Tokyo Dome performance and the off-shot video of the last rehearsal into NFTs Released in June 2023 SUIRINSHA Ltd. Hayakawa Shinsho Published the new Hayawaka Shinsho paperback label by Hayakawa Publishing Corporation, resulting in the world’s first "NFT eBook" Released in June 2023 Hayakawa Publishing Corporation Released in October 2023 NIHONBUNGEISHA Released in November 2023 TAKARAJIMASHA, Inc. Ano natsu ga houwa suru. Including narration of the full story by popular voice actors and a reading of the “Spin-off (Memories of That Summer's Day)” by the author Released on June 2024 KAWADE SHOBO SHINSHA *The figures are cumulative from October 2021 to February 28, 2025. Hirosue's Thought Map Digital voice eBook Digital items Digital videos Audiobook “Publications with digital NFT benefits” to Vitalize the Publishing Industry 4-2. IP Solution Business｜FanTop business
65. 64 (1) Event tickets （DCT） Portrait/sticker＋NFT digital cintent Various special digital contents can be obtained from QR codes printed on the paper Digital Content Tickets Acrylic stands videos images Electronic booklets Exclusive NFT content QR for purchasers Expand sales channels to all industries through initiatives to attach digital content to non-publication products ✓ In addition to publications, we also focus on initiatives to attach digital content to non-publications ✓ By expanding usage as a ticket and offering printing at convenience stores in the future, we aim to acquire content with dedicated fans and increase the number of members From October 2021 Focus on the publishing industry From 2Q FYE 2/25 Expand our target to all industries ✓ Focus on expanding publications with NFT content ✓ The total number of copies issued has exceeded 2.85 million (as of the end of Feb 2025) (2) Printing at convenience stores Implemented in December 2024 Implemented in August 2024 The world's first attempt to use special video content as digital tickets Users can print portraits and stickers with QR codes that allow them to obtain digital NFT content with multi-copy machines at convenience stores nationwide We aim to expand the number of stores that introduce our service by leveraging the ease of use that makes it possible to sell content at approximately 60,000 stores nationwide around the clock, with no sales costs Aim to expand usage opportunities at large-scale events, such as sporting events and concerts We will continue to focus on increasing the amount of content distributed on FanTop and the number of FanTop members 4-2. IP Solution Business｜FanTop business
66. 65 1 2 IP Solution business Global business 3 SC business
67. 66 Share Ratio 1/3 Share Ratio 2/3 Tokushima Shimbun 2024-24 Season Number of Publications TV & Radio Track Record TV 96times Radio 44times 2024-25 season Ranked 9/17 teams Established by MEDIA DO and 22 leading companies in Tokushima Prefecture Operating companies： Otsuka Pharmaceutical, Nichia Chemical, etc. Finance：Awa Bank, Tokushima Taisho Bank Media：Tokushima Shimbun, Shikoku Broadcasting GAMBAROU TOKUSHIMA Co., Ltd., the management company of TOKUSHIMA GAMBAROUS Days Number of articles 122 165 /213 /213 57% 77％ 2023-24 season Ranked 4/18 teams 4-3. SC Business｜TOKUSHIMA GAMBAROUS TOKUSHIMA GAMBAROUS, which was launched from scratch, involves the community and creates enthusiasm ✓ In April 2022, Tokushima Prefecture's first men's professional basketball team, the TOKUSHIMA GAMBAROUS, was established. Six months later, in October, they made their first entry into the 2023-24 season ✓ Despite starting from scratch, the company has gained fans from a wide range of people, regardless of age or gender, by increasing its media exposure, including publication in local newspapers
68. 67 Number of fan club members Number of visitors Avg. number of visitors per game Total number of visitors Net sales / Operating profit （Billions of yen） （Person） （Person） Number of Sponsors （Companies） 2023-24 2024-25 2023-24 2024-25 48 130 2023-24 2024-25 （見込） 1,297 1,555 33,732 40,430 2023-24 2024-25 882 2025-26 1,310 561 Early Enrollment Conducted for 2 days only Net sales 5.52mn Net sales 11.83mn Net sales 9.14mn Net sales Operating profit 0.18 0.44 -0.07 0.02 Achieved profitability in the second year 4-3. SC Business｜TOKUSHIMA GAMBAROUS TOKUSHIMA GAMBAROUS achieved early profitability in the second year of entry ✓ TOKUSHIMA GAMBAROUS has gained fans from a wide range of people, regardless of age or gender, by involving the local community ✓ It generated a great deal of enthusiasm in Tokushima Prefecture, and as a result, it achieved profitability in its second year of entry into the B3 League
69. 68 Revenue: ¥440 mn Avg. number of attendance: 1,555 2024-25 B3 B. Innovation (Starting in 2026) 2023-24 Revenue: ¥180 mn Avg. number of attendance: 1,297 Final ranking for the year: 4th B3 First year of entry ✓ No longer based on competition results; emphasis on sales, attendance, and arena ✓ Aiming for the Regional Revitalization League Contribute to the growth of MEDIA DO while expanding trust and recognition from society with the aim of entering a higher league ✓ Increased attendance and stable club management ✓ Capable of providing high-level entertainment beyond basketball, such as concerts, contributing to regional economic development B PREMIER Revenue: ¥1.2 bn Avg. number of attendance: 4,000 Arena Capacity: 5,000 seats 2028-29 B-League management policy encourages an environment where clubs and communities can grow together Key to club and community development 「Arena」 *Top level league Turning a profit ✓ In its second year of entry, sales and visitor numbers have grown significantly. Aiming for promotion to the highest category, B PREMIER, with a new arena in the future as a tailwind 4-3. SC Business｜TOKUSHIMA GAMBAROUS Expand trust and recognition from society while making a profitable contribution by entering a higher league
70. 69 05 Full-year Earning Trends for FYE 2/25 MEDIA DO Co., Ltd. Materials for New Investors
71. 70 1 2 Consolidated earnings Full-Year Financial Highlights for FYE 2/25 3 eBook Distribution business 4 Strategic Investment businesses
72. 71 Consolidated Performance Highlights 5-1. Full-year Earning Trends for FYE 2/25｜Full-Year Financial Highlights for FYE 2/25 Full-Year FYE 2/24 Full-Year FYE 2/25 YoY Net sales ¥94.03bn ¥101.91bn +8.4％（+7.88bn） EBITDA ¥3.39bn ¥3.79bn +11.7％（+0.40bn） Operating profit ¥2.06bn ¥2.47bn +19.8％（+0.41bn） Profit attributable to owners of parent -¥0.31bn ¥1.36bn -（+1.67bn） ✓ Net sales The eBook Distribution business grew strongly by 8.4% YoY due to higher growth rate of existing distribution channels than the previous year and the acquisition of new distribution channels in February 2024 ✓ Operating profit Increase of 19.8% YoY mainly due to profit improvement in the Strategic Investment businesses (IP Solution business) ✓ Profit attributable to owners of parent Despite recording extraordinary gains and losses, profitability was achieved due to the growth in operating profit 71
73. 72 Regarding Extraordinary Income and Losses Decrease Increase Total Net profit budget for FYE 2/25 Upward revision of ordinary profit Net profit results for FYE 2/25 Extraordinary Income Extraordinary losses Change in tax amount due to extraordinary income/losses 1,330 +113 +72 -551 ＋399 1,363 * Breakdown of extraordinary income: Profit from the sale of Everystar (¥21 mn), profit from the sale of investment securities (¥31 mn), and other gains from partial business transfers (¥20 mn), Breakdown of extraordinary losses: Impairment loss on goodwill related to NIHONBUNGEISHA (¥247 mn), impairment loss on goodwill and other assets related to ARTRA ENTERTAINMENT (¥235 mn), business reorganization loss due to JIVE’s withdrawal from the paper book business (¥23 mn), and valuation loss on investment securities (¥45 mn). ✓ Impairment losses were recorded for NIHONBUNGEISHA and ARTRA ENTERTAINMENT, which showed signs of performance improvement but fell short of their original plans at the time of acquisition ✓ On the other hand, net profit exceeded the initial forecast due to an increase in ordinary profit, extraordinary income from stock transfers, and a change in tax amount mainly resulting from these factors NIHONBUNGEISHA The decline in actual sales of major magazines and the increase in paper costs caused delays in digitalization. In May 2024, the management team was replaced, and although performance showed signs of improvement, impairment losses were recorded for the shortfall against the plan ARTRA ENTERTAINMENT Impairment losses were recorded for the core coloring business, which fell short of the plan. For FYE 2/26, performance improvement is expected through fixed cost reductions Main breakdown of extraordinary losses Millions of yen 72 5-1. Full-year Earning Trends for FYE 2/25｜Full-Year Financial Highlights for FYE 2/25
74. 73 ✓ Achieved initial forecasts in all items ¥101.91bn 100％ 0％ ¥3.79bn ¥1.36bn Achievement rate 106.5％ Achievement rate 104.0％ Achievement rate 102.5% 50％ ¥2.47bn Achievement rate 107.6％ Full-year forecast ¥98.0bn Full-year forecast ¥3.56bn Full-year forecast ¥2.30bn Full-year forecast ¥1.33bn Achievement Rate Against Full-Year Performance Net sales EBITDA Operating profit Net income attributable to owners of parent 5-1. Full-year Earning Trends for FYE 2/25｜Full-Year Financial Highlights for FYE 2/25
75. 74 eBook Distribution business Strategic Investment businesses Full-Year FYE 2/24 Full-Year FYE 2/25 YoY MEDIA DO Subsidiaries Distribution eBook Distribution business 85,103 92,653 +8.9% (+7,550) Book/magazine publishing*2 NIHONBUNGEISHA 2,247 2,020*3 -10.1% (-227) Web service operation Manga Saison FanTop Digital library Everystar Flier 3,610 3,662 +1.5% (+52) Solutions for Publish Industry Firebrand NetGalley Supadü 2,453 2,787 +13.6% (+334) other MD-i*4 ARTRA*4 GAMBAROU TOKUSHIMA 621 789 +27.0% (+167) Total 94,036 101,914 +8.4% (+7,877) Reportable segments*1 Types of services provided* 1 Net sales by Segment Millions of yen *1 For businesses in the breakdown of reporting segments and Types of services provided, representative businesses corresponding to that category are listed. *2 Figures for sales of publishing subsidiaries exclude eBook sales *3 Figures are mainly based on sales in print books, excluding eBook sales, etc. Due to the phase of curbing new publications and accepting returns in connection with the restructuring, the percentage of sales decline in print books is larger than the percentage of overall sales decline at NIHONBUNGEISHA. *4 MD-i=Media Do International, Inc., ARTRA=ARTRA ENTERTAINMENT Inc. 74 5-1. Full-year Earning Trends for FYE 2/25｜Full-Year Financial Highlights for FYE 2/25
76. 75 1 2 Consolidated earnings Full-Year Financial Highlights for FYE 2/25 3 eBook Distribution business 4 Strategic Investment businesses
77. 76 964 1,117 883 902 834 800 817 942 792 953 924 1,119 619 715 500 557 485 508 473 599 475 621 594 784 2.4% 2.6% 2.1% 2.4% 2.1% 2.1% 2.1% 2.4% 1.9% 2.4% 2.4% 3.0% 0.0% 1.0% 2.0% 3.0% 4.0% 0 200 400 600 800 1,000 1,200 26,269 27,956 23,814 23,627 22,632 23,764 22,917 24,721 25,113 25,943 24,385 26,471 ✓ Net sales reached a record high after the transfer of LINE Manga, driven by the strong performance of the eBook Distribution business ✓ Both EBITDA and operating profit also reached record highs, and the operating profit margin returned to 3% for the first time since Q2 of FYE 2/22. 1Q 1Q 2Q 3Q 4Q 1Q 2Q * Transfer of back-end operations for major publishers that accounted for the majority of sales to LINE Manga 3Q 4Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2Q 3Q 4Q Record high as Q4 Overview EBITDA Net sales Net sales Sales for LINE Manga Millions of yen EBITDA / Operating profit Millions of yen Operating profit Operating profit margin Start / end of LINE Manga transfer * Start / end of LINE Manga transfer * FYE 2/25 FYE 2/23 FYE 2/24 FYE 2/25 FYE 2/23 FYE 2/24 76 5-2. Full-year Earning Trends for FYE 2/25｜Consolidated earnings
78. 77 24,744 26,020 21,925 21,708 20,791 22,032 20,972 22,652 23,248 23,907 22,315 24,347 1,908 2,245 2,260 2,189 2,132 2,028 2,191 2,260 2,153 2,342 2,248 2,209 0 5,000 10,000 15,000 20,000 25,000 30,000 ✓ eBook Distribution business: Sales increased in both YoY and QoQ. Record-high sales after the transfer of LINE Manga, partly due to the contribution of new distribution channels acquired in February 2024 ✓ Strategic Investment businesses: Sales declined in both YoY and QoQ; IP Solution business recorded higher sales, but the Imprint business (ARTRA*2) was affected by the decline in sales 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q *3 *3 *3 *3 *3 *3 *3 *3 *3 *3 3Q *3 *3 4Q Sales Trends (by Segment) *1 Made Everystar a wholly owned subsidiary Acquired Supadü Sold off Nagisa Millions of yen eBook Distribution business Strategic Investment businesses eBook Distribution business, Sales for LINE Manga FYE 2/25 FYE 2/23 FYE 2/24 *1 Sales does not include adjustments for inter-segment sales, etc. The quarterly adjustment amounts are listed on page 26 *2 ARTRA=ARTRA ENTERTAINMENT Inc. *3 Total amount of eBook Distribution business and sales for LINE Manga 77 5-2. Full-year Earning Trends for FYE 2/25｜Consolidated earnings
79. 78 1,355 1,398 1,239 1,254 1,213 1,297 1,143 1,256 1,260 1,253 1,127 1,329 -411 -351 -366 -333 -331 -405 -259 -294 -364 -218 -176 -234 -324 -331 -373 -363 -395 -383 -410 -363 -420 -413 -356 -311 619 715 500 557 485 508 473 599 475 621 594 784 2.4% 2.6% 2.1% 2.4% 2.1% 2.1% 2.1% 2.4% 1.9% 2.4% 2.4% 3.0% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% -1,000 -500 0 500 1,000 1,500 ✓ eBook Distribution business increased due to sales growth and curbing of operating costs ✓ Strategic Investment businesses is on an improving profit trend, but Q4 FYE 2/25 deteriorated in QoQ due to lower sales and higher expenses in the Imprint business (ARTRA*) ✓ Adjustment amounts include HQ expenses and the P/L of GAMBAROU TOKUSHIMA Co., Ltd., which manages the TOKUSHIMA GAMBAROUS that joined the B3 League in Oct. 2023. Improvements in 2H of FYE 2/25 reflect an operating profit in their second season. 1Q 2Q 3Q 4Q FYE 2/23 FYE 2/24 FYE 2/25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q * ARTRA=ARTRA ENTERTAINMENT Inc. Operating Profit Trends (by Segment) Millions of yen eBook Distribution business Strategic Investment businesses Adjustment amount Operating profit margin 78 5-2. Full-year Earning Trends for FYE 2/25｜Consolidated earnings
80. 79 26,269 27,956 23,814 23,627 22,632 23,764 22,917 24,721 25,113 25,943 24,385 26,471 23,020 24,347 20,371 20,223 19,443 20,508 19,559 21,259 21,805 22,473 20,950 22,896 1Q 2Q 3Q 4Q FYE 2/23 FYE 2/24 FYE 2/25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ✓ Royalties and other costs decreased in line with a decrease in net sales due to the transfer of LINE Manga from Q3 FYE 2/23 ✓ Royalties and other costs are also on the upturn in line with an increase in net sales partly due to the impact of new distribution channels from Q3 FYE 2/24 to the most recent quarter Trends in Royalties and Other Costs*1 Net sales Royalties and related costs Millions of yen Start / end of LINE Manga transfer *2 *1 Figures for the trends in the total cost of sales including royalties incurred in the eBook Distribution business and the printing and binding costs recorded by NIHONBUNGEISHA and others in the Imprint business *2 Transfer of back-end operations for major publishers that accounted for the majority of sales to LINE Manga 79 5-2. Full-year Earning Trends for FYE 2/25｜Consolidated earnings
81. 80 33 32 29 28 27 25 25 24 24 23 19 19 53 57 63 64 61 66 65 50 67 41 64 75 1,480 1,582 1,619 1,494 1,520 1,562 1,595 1,547 1,605 1,607 1,537 1,500 157 172 183 178 173 116 165 170 153 166 166 170 188 229 199 166 174 176 178 172 163 165 163 164 716 819 845 913 744 799 855 897 818 843 890 858 2,629 2,893 2,942 2,845 2,703 2,748 2,885 2,862 2,832 2,849 2,841 2,790 10.0% 10.3% 12.4% 12.0% 11.9% 11.6% 12.6% 11.6% 11.3% 11.0% 11.7% 10.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 0 500 1,000 1,500 2,000 2,500 3,000 ✓ Cost of sales/SG&A ratio: Increased in Q3 FYE 2/23 due to lower sales resulting from the transfer of LINE Manga ✓ Personnel expenses: Decreased due to company-wide reduction of headcounts to improve productivity ✓ Others: (1) Operating expenses for GAMBAROU TOKUSHIMA increased from Q3 FYE 2/24. Seasonal factors caused costs to increase in the second half of the fiscal year, which is the start of the season, (2) Increased due to the impact of lower transfer to assets of engineer personnel expenses, as maintenance and other operations became the main activities after Q2 of FYE 2/25 899 1Q 2Q 3Q 4Q FYE 2/23 FYE 2/24 FYE 2/25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Trends in Cost of Sales/SG&A Expenses (Excluding Royalties) TOKUSHIMA GAMBAROUS operating costs increased Millions of yen Advertising expenses Personnel expenses Cost of sales/SG&A expense ratio (excluding royalties from cost of sales) Commissions Depreciation/amortization (excluding goodwill) Amortization of goodwill Others*1 Increases in personnel at the overseas subsidiary Firebrand, base pay raises due to inflation, and increased costs due to the depreciation of the yen Start / end of LINE Manga transfer *2 Decrease in personnel expenses in overseas subsidiaries *1 "Other" includes outsourcing expenses, rent expenses, and taxes and public dues *2 Transfer of back-end operations for major publishers that accounted for the majority of sales to LINE Manga 80 5-2. Full-year Earning Trends for FYE 2/25｜Consolidated earnings
82. 81 197 200 200 194 190 189 189 186 185 182 181 173 105 116 113 113 113 105 107 108 104 102 103 102 77 77 84 88 88 91 90 89 94 92 90 87 102 108 109 112 116 115 114 114 114 116 117 115 73 75 76 59 27 25 24 24 24 19 17 15 79 79 77 81 96 100 94 91 98 98 92 91 632 655 658 646 628 625 617 611 619 610 600 583 0 200 400 600 800 ✓ The number of employees has increased on a consolidated basis due to strengthened recruitment and the acquisition of group companies in FYE 2/23, but since then, the number of employees has been on the downturn due to a review of the business portfolio *1 The number of employees is the monthly average for each quarter *2 The FanTop Business includes figures for new businesses such as XR and GREET as well as MyAnimeList, J-Comic Terrace, and Nagisa in FYE 2/23 1Q 2Q 3Q 4Q FYE 2/23 FYE 2/24 FYE 2/25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Organizational changes Streamlining of operations Trends in the Number of Employees*1 Unit: Persons eBook Distribution business Imprint business IP Solution business Global business FanTop business*2 Corporate division 81 5-2. Full-year Earning Trends for FYE 2/25｜Consolidated earnings
83. 82 1 2 Consolidated earnings Full-Year Financial Highlights for FYE 2/25 3 eBook Distribution business 4 Strategic Investment businesses
84. 83 112.8% 112.8% 112.6% 112.2% 106.8% 108.6% 108.7% 101.6% 109.2% 113.6% 105.7% 103.2% 100% 110% 120% ✓ The cumulative growth rate for FYE 2/25 is 108.9%, strong performance throughout the period due to the acquisition of new distribution channels in February 2024 ✓ December: Growth due to a higher than usual number of year-end holidays and favorable sales for major campaigns ✓ February: Slowdown due to the completion of new distribution channels and a reaction to the strong sales in the previous year due to the leap year Growth rebound in FYE 2/24 ✓ Sales recorded more than double those of previous year due to large-scale campaigns by major eBook retailer ✓ A hit from the anime adaptation of a work that started airing in October 2023 Full Year Growth Rate 111.3％ YoY Sales Growth Rate YoY sales growth rate* YoY comparison for FYE 2/25 YoY comparison for FYE 2/24 February 2024 Acquisition of the New distribution channel (Piccoma) March April May June July August September October November December January February By Genre: Comics 108.8％／Books 106.5％／Photo books 128.8％ Magazines 98.9％ 108.9%existing distribution channels+4.1％ new distribution channels+4.9％ *The cumulative growth rate for FYE 2/24 is 104.3％ * Calculated excluding sales for LINE Manga 83 5-3. Full-year Earning Trends for FYE 2/25｜eBook Distribution business
85. 84 1,355 1,398 1,239 1,254 1,213 1,297 1,143 1,256 1,260 1,253 1,127 1,329 5.5% 5.4% 5.7% 5.8% 5.8% 5.9% 5.5% 5.5% 5.4% 5.2% 5.1% 5.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 0 200 400 600 800 1,000 1,200 1,400 1,600 24,744 26,020 21,925 21,708 20,791 22,032 20,972 22,652 23,248 23,907 22,315 24,347 0 5,000 10,000 15,000 20,000 25,000 30,000 1Q 1Q 2Q 3Q 4Q 1Q FYE 2/25 FYE 2/23 FYE 2/24 2Q 3Q 4Q 2Q 1Q 1Q 2Q 3Q 4Q 1Q FYE 2/25 FYE 2/23 FYE 2/24 2Q 3Q 4Q 2Q 3Q 3Q 4Q 4Q Trends in Net Sales and Operating Profit Start / end of LINE Manga transfer * Operating profit Operating profit margin Net sales Net sales Sales for LINE Manga Millions of yen Millions of yen Operating profit / Operating profit margin Start / end of LINE Manga transfer * * Transfer of back-end operations for major publishers that accounted for the majority of sales to LINE Manga ✓ Net sales increased for the fifth consecutive quarter in YoY, partly due to the contribution from the new distribution channels acquired in February 2024, and record high excluding Sales for LINE Manga ✓ Operating profit also recorded the highest profit since the transfer of LINE Manga in Q4 FYE 2/25. Operating profit margin improved partly due to the impact of headcount reductions resulting from productivity improvements 84 5-3. Full-year Earning Trends for FYE 2/25｜eBook Distribution business
86. 85 288 311 357 299 225 256 234 231 288 328 323 309 477 478 457 458 482 442 461 453 392 385 376 356 766 790 814 758 708 698 695 685 681 714 699 665 3.1% 3.0% 3.7% 3.5% 3.4% 3.2% 3.3% 3.0% 2.9% 3.0% 3.1% 2.7% 0.0% 1.5% 3.0% 4.5% 0 500 1,000 1,500 ✓ The ratio of the cost of SG&A expenses excluding royalties, both the absolute amount and rate of cost of sales and SG&A expenses have been improving since Q4 FYE 2/23 due to business process improvements ✓ Cost of sales increased from Q2 FYE 2/25 onward. Factors included a decrease in asset transfers of engineer personnel expenses, as maintenance and other operations became the main activities ✓ Cost of sales and SG&A ratio declined in Q4 FYE 2/25 due to sales growth and headcount reductions from productivity improvements 1Q 2Q 3Q 4Q FYE 2/23 FYE 2/24 FYE 2/25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Impact of the decrease in sales due to the transfer of LINE Manga Cost Structure (Cost of Sales/SG&A Expenses Excluding Royalties) Millions of yen SG&A expenses Cost of sales/SG&A expense ratio (Management/development expenses, server cost, etc.) Cost of sales Impact of reallocation Decrease in personnel expenses for engineers transferred to assets, as operations mainly focused on maintenance and other activities 85 5-3. Full-year Earning Trends for FYE 2/25｜eBook Distribution business
87. 86 1 2 Consolidated earnings Full-Year Financial Highlights for FYE 2/25 3 eBook Distribution business 4 Strategic Investment businesses
88. 87 -411 -351 -366 -333 -331 -405 -259 -294 -364 -218 -176 -234 1,908 2,245 2,260 2,189 2,132 2,028 2,191 2,260 2,153 2,342 2,248 2,209 ✓ Both net sales and operating profit deteriorated in QoQ due to lower sales in the Imprint business and upfront expenses for the launch of a new website at NIHONBUNGEISHA, despite the contribution of improvement in the IP Solutions business 1Q 1Q 2Q 3Q 4Q 1Q FYE 2/25 FYE 2/23 FYE 2/24 2Q 3Q 4Q 2Q 1Q 1Q 2Q 3Q 4Q 1Q FYE 2/25 FYE 2/23 FYE 2/24 2Q 3Q 4Q 2Q 3Q 3Q 4Q 4Q Net Sales Operating profit Trends in Net Sales and Operating Profit Millions of yen Millions of yen 5-4. Full-year Earning Trends for FYE 2/25｜Strategic Investment businesses
89. 88 1,103 1,223 1,217 1,171 1,162 1,086 1,042 1,182 1,113 1,131 1,086 1,127 1,216 1,373 1,408 1,351 1,302 1,347 1,409 1,372 1,404 1,429 1,338 1,315 2,319 2,596 2,626 2,523 2,464 2,434 2,451 2,554 2,517 2,560 2,424 2,443 121.6% 115.6% 116.2% 115.2% 115.6% 120.0% 111.8% 113.0% 116.9% 109.3% 107.8% 110.6% -20.0% 20.0% 60.0% 100.0% 140.0% 0 1,000 2,000 3,000 4,000 ✓ SG&A expenses decreased in both YoY and QoQ, mainly due to lower personnel expenses in the Global business ✓ Cost of sales increased slightly in QoQ, mainly due to a temporary increase in personnel expenses at NIHONBUNGEISHA 1Q 2Q 3Q 4Q FYE 2/23 FYE 2/24 FYE 2/25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Cost Structure SG&A expenses Cost of sales/SG&A expense ratio Cost of sales Millions of yen Sold off Nagisa 5-4. Full-year Earning Trends for FYE 2/25｜Strategic Investment businesses
90. 89 -1,291 80 23 118 208 -38 -86 -9 -994 ✓ The Strategic Investment businesses as a whole improved profit by ¥297 mn YoY for the full year (FYE 2/24: profit improved by ¥171 mn YoY) ✓ In addition to controlling investments to an appropriate level, the IP Solution business contributed to profit improvement. Flier returned to profitability for the full year ✓ Operating profit at NIHONBUNGEISHA bottomed out in Q1 and has been on an improving trend. Without one-time expenses and upfront investments, it would have ended a YoY increase -39 Implemented investment control at an appropriate level Sales increased, but full- fledged profit growth will not be achieved until the next fiscal year due to higher personnel expenses Listed on the TSE Growth Market on February 20 Achieved full-year profitability Deterioration of ARTRA ENTERTAINMENT YoY increase excluding revaluation of returned assets -21 (Q1) and expenses for opening new website -20 (Q4) Analysis of YoY Change in Operating Profit -31 IP Solution business Imprint business Full-Year FYE 2/24 Operating profit FanTop business Global business Flier Others NIHONBUNGEISHA Others Adjustment amount (Transactions within segments, etc.) Full-Year FYE 2/25 Operating profit Millions of yen Decrease Increase Total 89 ・Launched “MANGA MIRAI” eComic distribution service for North America in cooperation with NTT DOCOMO ・The Audiobook business was strong 5-4. Full-year Earning Trends for FYE 2/25｜Strategic Investment businesses
91. 90 FYE 2/24 FYE 2/25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales*1 22,632 23,764 22,917 24,721 25,113 25,943 24,385 26,471 eBook Distribution Business 20,791 91.9% 22,032 92.7% 20,972 90.7% 22,652 91.6% 23,248 92.6% 23,907 92.2% 22,315 91.5% 24,347 92.0% Strategic Investment Businesses 2,132 9.4% 2,028 8.5% 2,191 10.3% 2,260 9.1% 2,153 8.6% 2,342 9.0% 2,248 9.2% 2,209 8.3% Cost of sales, SG&A expenses*2 22,147 97.9% 23,256 97.9% 22,444 97.9% 24,122 97.6% 24,638 98.1% 25,322 97.6% 23,791 97.6% 25,687 97.0% Royalties/other cost of sales 19,443 85.9% 20,508 86.3% 19,559 85.3% 21,259 86.0% 21,805 86.8% 22,473 86.6% 20,950 85.9% 22,896 86.5% Commissions 27 0.1% 25 0.1% 25 0.1% 24 0.1% 24 0.1% 23 0.1% 19 0.1% 19 0.1% Advertising expenses 61 0.3% 66 0.3% 65 0.3% 50 0.2% 67 0.3% 41 0.2% 64 0.3% 75 0.3% Personnel expenses 1,520 6.7% 1,562 6.6% 1,595 7.0% 1,547 6.3% 1,605 6.4% 1,607 6.2% 1,537 6.3% 1,500 5.7% Depreciation/amortization (excluding goodwill) 173 0.8% 116 0.5% 165 0.7% 170 0.7% 153 0.6% 166 0.6% 166 0.7% 170 0.6% Amortization of goodwill 174 0.8% 176 0.7% 178 0.8% 172 0.7% 163 0.7% 165 0.6% 163 0.7% 164 0.6% Others 744 3.3% 799 3.4% 855 4.3% 897 3.6% 818 3.3% 843 3.2% 890 3.6% 858 3.2% EBITDA 834 3.7% 800 3.4% 817 3.6% 942 3.8% 792 3.2% 953 3.7% 924 3.8% 1,119 4.2% Operating profit 485 2.1% 508 2.1% 473 2.1% 599 2.4% 475 1.9% 621 2.4% 594 2.4% 784 3.0% Ordinary profit 441 1.9% 496 2.1% 500 2.2% 552 2.2% 490 2.0% 543 2.1% 607 2.5% 718 2.7% Profit before income taxes 435 1.9% 494 2.1% 606 2.6% -1,097 -4.4% 464 1.8% 520 2.0% 611 2.5% 286 1.1% Profit attributable to owners of parent 232 1.0% 277 1.2% 351 1.5% -1,180 -4.8% 244 1.0% 276 1.1% 391 1.6% 451 1.7% Results for Full-Year FYE 2/25 (P/L) Millions of yen *3 *4 *1 Adjustment amounts not included in the eBook Distribution business and the Strategic Investments businesses were -¥290mn in Q1 FYE 2/24, -¥296mn in Q2, -¥246mn in Q3, -¥191mn in Q4, -¥288mn in Q1 FYE 2/25, -¥306mn in Q2, -¥178mn in Q3, -¥84mn in Q4. *2 Of which ¥18,870mn in Q1 FYE 2/24, ¥20,035mn in Q2, ¥19,133mn in Q3, ¥20,710mn in Q4, ¥21,307mn in Q1 FYE 2/25, ¥21,939mn in Q2 , ¥20,488mn in Q3, ¥22,351mn in Q4 were related to the eBook Distribution business *3 Recorded a gain on sale of investment securities of ¥106mn from the transfer of shares of A.I. Squared, Inc. *4 Recorded a gain on change in equity of ￥110mn from the third-party allocation of new shares of MyAnimeList. Posted extraordinary losses totaling ¥1,769mn, including an impairment loss of ¥465mn for the VSC business and ¥438mn in impairment of goodwill related to Supadü Limited 90 5-4. Full-year Earning Trends for FYE 2/25｜Strategic Investment businesses
92. 91 Q3 FYE 2/25 Full-Year FYE 2/25 QoQ change Main factors of change Current assets 36,655 39,960 3,305 Cash and deposits 11,557 13,591 2,034 Notes and accounts receivable - trade, and contract assets 23,101 24,033 932 Non-current assets 14,635 13,199 -1,1436 Property, plant and equipment 677 582 -95 Software 651 633 -18 Goodwill 5,287 4,198 -1,089 Decrease due to sale and impairment Investment securities 5,769 5,669 -100 Total assets 51,290 53,160 1,870 Current liabilities 30,827 32,220 1,393 Notes and accounts payable – trade 26,641 28,273 1,632 Current portion of long-term borrowings 1,533 1,507 -26 Total non-current liabilities 3,608 3,231 -377 Long-term borrowings 2,720 2,358 -362 Total liabilities 34,436 35,451 1,015 Total shareholders' equity 15,903 16,488 585 Share capital 5,990 5,990 0 Capital surplus 5,768 5,901 133 Retained earnings 4,193 4,645 452 Increase due to profit attributable to owners of the parent Treasury shares -48 -48 0 Total accumulated other comprehensive income 939 1,111 172 Increase in foreign currency translation adjustments Non-controlling interests 10 108 98 Total net assets 16,854 17,708 854 Total liabilities and net assets 51,290 53,160 1,870 Results for Full-Year FYE 2/25 (B/S) Millions of yen 91 5-4. Full-year Earning Trends for FYE 2/25｜Strategic Investment businesses
93. 92 06 Full-Year Earnings Forecast for FYE 2/26 MEDIA DO Co., Ltd. Materials for New Investors
94. 93 FYE 2/25 Results FYE 2/26 Forecast YoY Net sales ¥101.9bn ¥106.0bn ＋4.0%（+4.10bn） Operating profit ¥2.47bn ¥2.72bn +9.9%（+0.25bn） Ordinary profit ¥2.36bn ¥2.70bn ＋14.4%（+0.34bn） Profit attributable to owners of parent ¥1.36bn ¥2.00bn +46.7%（＋0.64bn） EBITDA ¥3.79bn ¥3.93bn ＋3.7%（+0.14bn） ROE 8.1％ 10.9％ +2.8pt Consolidated Earnings Forecast for FYE 2/26 (1) ✓ FYE 2/25: First increase in revenue and profit in three fiscal years ✓ In FYE 2/26, we expect continued growth in both revenue and profit due to an increase in market share in the eBook Distribution business, improved profit/loss from progress in each of the Strategic Investment businesses, and a review of the business portfolio * Gain on sales of shares of affiliated company (¥531 mn) due to the transfer of shares of MyAnimeList, an equity-method affiliate 6. Full-Year Earnings Forecast for FYE 2/26
95. 94 FYE 2/25 Results* FYE 2/26 Forecast YoY Rate of change eBook Distribution business ¥93.8bn ¥97.6bn +¥3.8bn +4.1% Strategic Investment businesses ¥9.5bn ¥9.8bn +¥0.3bn +3.2% Adjustment -¥1.4bn -¥1.5bn -¥0.1bn - Total ¥101.9bn ¥106.0bn +¥4.1bn +4.0% FYE 2/25 Results* FYE 2/26 Forecast YoY Rate of change eBook Distribution business ¥4.97bn ¥4.84bn -¥0.13bn -2.6% Strategic Investment businesses -¥0.96bn -¥0.41bn +¥0.55bn - Adjustment -¥1.53bn -¥1.70bn -¥0.17bn - Total ¥2.47bn ¥2.72bn +¥0.25bn +9.9% Net sales Operating profit 連結業績予想 * Actual results based on the sub-segment of the Strategic Investment businesses, which was changed from FYE 2/26 Consolidated Earnings Forecast for FYE 2/26 (2) Forecast by segment 6. Full-Year Earnings Forecast for FYE 2/26
96. 95 Full-Year FYE 2/25 Operating profit Full-Year FYE 2/26 Operating profit （forecast） ✓ Revenue and profit back on track to increase from FYE 2/25 ✓ eBook Distribution business expected to decrease profit due to lower profit margin resulting from expansion of distribution market share with major publishers and eBook retailers ✓ Strategic investment businesses is expected to increase profit mainly in IP Solution business +0.05 +0.47 -0.17 eBook distribution business Adjustment Strategic Investment businesses：+0.55 Global business SC business +0.03 IP Solution business -0.13 2.47 2.72 Billions of yen Consolidated Earnings Forecast for FYE 2/26 (3) Key Performance Indicators 6. Full-Year Earnings Forecast for FYE 2/26
97. 96 07 Financial Policy MEDIA DO Co., Ltd. Materials for New Investors
98. 97 1 2 Shareholder Return Policy Five-Year Plan 3 Management that is Conscious of Cost of Capital and Stock Price
99. 98 101,917 106,000 115,000 125,000 25/2期 実績 26/2期 中計1年目 28/2期 中計3年目 30/2期 中計5年目 Aiming for inorganic growth by promoting overseas expansion ✓ Medium-term five-year performance targets are based on organic growth ✓ Strengthening support for overseas expansion in the Global business and growth through M&A are not included in the plan, but are being promoted as further growth factors Image of sales growth during the Medium-Term Management Plan period Millions of yen 7-1. Financial Policy｜Five-Year Plan FYE 2/25 Results FYE 2/26 1st year of mid-term plan FYE 2/28 3rd year of mid-term plan FYE 2/28 5th year of mid-term plan Performance Targets of the Medium-Term Management Plan （organic growth） Further growth through new businesses and M&A (Not factored into the planned value) Growth associated with overseas business development of Japan content translated by MDTS Growth through M&A Aiming to achieve discontinuous growth by actively promoting overseas expansion and M&A
100. 99 ✓ Through sustainable growth of existing businesses and expansion of new businesses, we aim to achieve consolidated net sales of ¥125.0 bn and operating profit of ¥4.0 bn in FYE 2/30 Net sales Operating profit ¥4.00bn +23.1bn FYE 2/25 1st year of mid-term plan FYE 2/26 3rd year of mid-term plan FYE 2/28 5th year of mid-term plan FYE 2/30 Net sales ¥101.9bn ¥106.0 bn ¥115.0 bn ¥125.0 bn Operating profit ¥2.47bn ¥2.72 bn ¥3.22 bn ¥4.00 bn EBITDA ¥3.78bn ¥3.93 bn ¥4.50 bn ¥5.20 bn Profit attributable to owners of parent ¥1.36bn ¥2.00 bn ¥2.15 bn ¥2.50 bn ¥125.0bn Increase amount FYE 2/30 ¥2.47bn ¥101.9bn FYE 2/25 +1.53bn （5th year of mid-term plan） *Numerical plan does not include planned figures for new overseas expansion 7-1. Financial Policy｜Five-Year Plan In FYE 2/30, aiming for record highs in consolidated revenue and all profit categories
101. 100 93.8 97.7 105.4 113.7 9.6 9.8 11.3 13.3 101.9 106.0 115.0 125.0 -1.5 -1.5 -1.7 -2.0 4.97 4.84 4.91 5.03 -0.97 -0.42 0.08 0.82 2.48 2.72 3.22 4.00 -1.53 -1.70 -1.77 -1.86 Sales Image by Business Segment FYE 2/25 FYE 2/26 FYE 2/28 FYE 2/30 Operating Profit Image by Business Segment FYE 2/25 FYE 2/26 FYE 2/28 FYE 2/30 eBook Distribution business Strategic Investment businesses Other adjustment Aiming for early profitability in Strategic Investment businesses （1st year of mid-term plan） （billions of yen） eBook Distribution business Strategic Investment businesses Other adjustment （billions of yen） （3rd year of mid-term plan） （5th year of mid-term plan） （1st year of mid-term plan） （3rd year of mid-term plan） （5th year of mid-term plan） 7-1. Financial Policy｜Five-Year Plan Achieve profitability in the Strategic Investment businesses as soon as possible, based on stable growth in the eBook Distribution business
102. 101 ✓ Established performance-linked paid stock options for standing directors and executive officers as a commitment to achieving dramatic growth ✓ Aiming to surpass the ordinary profit of ¥2.78 bn achieved in FYE 2/22 and set a new record for the highest profit 2,369 2,700 2,900 3,200 3,980 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 25/2期 実績 26/2期 27/2期 28/2期 29/2期 30/2期 Conditions for exercising paid stock options: cumulative ordinary profit of ¥8.8 bn or more over three years * Please refer to the “[Summary] Notice Regarding the Issuance of Paid Stock Acquisition Rights (Performance-Linked Paid Stock Options)” issued on April 14, 2025 for details Millions of yen Trends in Ordinary Profit FYE 2/25 (Results) FYE 2/26 FYE 2/27 FYE 2/28 FYE 2/29 FYE 2/30 7-1. Financial Policy｜Five-Year Plan Determining executive compensation based on performance targets of the medium-term management plan
103. 102 Five-Year Capital Allocation Image (FYE 2/26 - FYE 2/30 Cumulative) Growth investment (from ¥11 bn and above) Cash inflow Cash outflow ✓ Executing M&A and investments aiming for an ROIC of 15% or more within three years post-investment (Key initiatives include strengthening positions in eBook Distribution, improving profitability through the utilization of MEDIA DO's distribution channels, expanding overseas sales channels and supporting exports, and leveraging advanced technologies such as AI and Web3) Shareholder Returns（Dividend ¥3.5 bn + α） ✓ Set total return ratio at 30% and flexibly implement share buybacks while monitoring stock price conditions/ Record-high dividend of ¥40 per share expected for FYE 2/26 ✓ Operating cash flow generated during the medium-term management plan period will exceed ¥22.0 bn over the five-year period ✓ Growth investment will be made through aggressive business investment and M&A, and shareholder returns will also be strengthened Repayment of borrowings ✓ Borrowings associated with M&A, including Digital Publishing Initiatives Japan Co., Ltd. in 2017, have been largely repaid over ¥22.0bn Operating CF Repayment of borrowings ¥3.5bn Corporate tax payment ¥4.5bn Shareholder Returns ¥3.5bn＋α Additional financing (to be considered as needed) Growth investment ¥11.0bn and above 7-1. Financial Policy｜Five-Year Plan
104. 103 Our PMI Case Studies Clear medium-term vision Disciplined Business management Periodic business portfolio review based on ROIC criteria Set a time frame and develop a structure to return to profitability and create business synergies Although there were some cases of failure in projects where the above were not sufficiently established, PMI know-how was accumulated The Company's vision is “More Content for More People!” We have shortlisted domestic and international companies to realize our vision ①The Case of Digital Publishing Initiatives Japan ②The Case of Flier ✓ Acquired the Digital Publishing Initiatives Japan, which was the industry's No.1 at the time, in March 2017 ✓ Completed PMI by integrating management, organization, and business in 3 years ✓ Sales grew 2.7 times in 8 years from ¥34.2 bn in total sales of both companies in FYE 2/16 to ¥93.8 bn in eBook distribution business sales in FYE 2/25 ✓ Returned to full-year profitability in FYE 2/19, but moved back to investment phase ✓ Achieved full-year profitability again in FYE 2/25 due to growth in corporate sales ✓ Listed on the TSE Growth Market on February 20, 2025; market capitalization (at time of IPO) has grown 3.4x from ¥400 mn at acquisition in November * Post Merger Integration, the process of integration after M&A ✓ While large-scale M&A and capital alliances are increasing in the content market, we will carefully evaluate and execute projects that contribute to the realization of our vision ✓ PMI know-how is accumulating, as evidenced by the fact that it took 3 years from the acquisition of Digital Publishing Initiatives Japan Co., Ltd. And 5 years from the planned IPO of Flier Inc. to achieve value enhancement. Going forward, we will continue to optimize the allocation of management resources and concentrate investment by reviewing our business portfolio 7-1. Financial Policy｜Five-Year Plan Proactively conduct M&A that contribute to business domain expansion based on past M&A experience
105. 104 1 2 Shareholder Return Policy Five-Year Plan 3 Management that is Conscious of Cost of Capital and Stock Price
106. 105 13 yen 21 yen 21 yen 円 22 yen 36 yen 40 yen 21% 21% 21% 95% 76% 40% 30% -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% 円 10円 20円 30円 40円 50円 60円 70円 80円 90円 20/2期 21/2期 22/2期 23/2期 24/2期 25/2期 26/2期 27/2期 28/2期 ✓ Dividend per share for FYE 2/26 will be 40 yen, a record high ✓ Established a shareholder return policy of a total shareholder return ratio of 30% or more from FY 2/23, and implemented share buybacks We will continue to implement flexible share buybacks while monitoring stock price trends, and will consider raising the rate of return in stages （予想） 0 yen Total return ratio* Record high amount 自己株取得（総還元性向95%）を行った23/3期を除き 配当開始以降、増配を継続 （予定） Shareholder Return Policy FYE 2/20 FYE 2/21 FYE 2/22 FYE 2/23 FYE 2/24 FYE 2/25 (scheduled) FYE 2/26 (forecast) . FYE 2/27 FYE 2/28 Policy changed at the time of medium-term plan formulation (FYE 2/23) Total return ratio of 30% or more Shareholder Return Policy Total return ratio of 20% or more Dividend per share Share buyback 1 bn yen Share buyback 0.5 bn yen Commemorative Dividend 8 yen Ordinary Dividend 28 yen *Total return ratio = (Total amount of dividends paid + Total amount of treasury shares acquired) / Profit attributable to owners of parent. 7-2. Financial Policy｜Shareholder Return Policy
107. 106 1 2 Shareholder Return Policy Five-Year Plan 3 Management that is Conscious of Cost of Capital and Stock Price
108. 107 Current Understanding Policy Initiatives ✓ We recognize our capital cost to be approximately 10% ✓ ROE is expected to rise from 8.1% in FYE 2/25 to 10.9% in FYE 2/26, exceeding our cost of equity capital ✓ As of the end of FYE 2/25, PER was 18.1 times and PBR was 1.4 times. To achieve further enhancement of corporate value, it is increasingly important to steadily implement and embed our medium- to long-term growth strategies. Since FYE 2/25, we have been on a growth trajectory of increased revenue and profit. We are focusing on improving ROE and PER, mainly through profitability enhancements in each business, with the goal of raising our stock price Steady achievement of targets in the Medium-Term Management Plan announced in April 2025 ＜Financial Targets＞ FYE 2/30 (Year 5 of the plan): Net sales of ¥125.0 bn, operating profit of ¥4.0 bn, net income of ¥2.5 bn（→p.99） *These performance targets do not incorporate new businesses or M&A. We aim for further growth through proactive global expansion and M&A ＜Five-Year Cash Allocation＞ Operating cash flow: Over ¥22.0 bn, Growth investments: Over ¥11.0 bn—focused on investments and M&A targeting ROIC of 15% or higher within 3 years, Shareholder returns: ¥3.5 bn in dividends + α（→p.102） ✓ Profit improvement through market share expansion in the eBook Distribution business, Improved profitability and business portfolio restructuring based on the progress of each business in the Strategic Investment businesses ✓ Implementation of appropriate shareholder returns with a target total payout ratio of over 30% (→ p.102, p.105) ✓ As a commitment to achieving significant growth, we have introduced performance-linked stock options (with payment) for full-time directors and executive officers (→ p.101) ✓ We are also working to enhance dialogue with the market by expanding disclosure including progress in our businesses and non-financial initiatives 7-3. Financial Policy｜Management that is Conscious of Cost of Capital and Stock Price Actions to implement Management that is Conscious of Cost of Capital and Stock Price
109. 108 17.4% 17.0% 10.9% 6.3% 6.2% 8.1% 10.9% 0% 5% 10% 15% 20% 2020/2 2021/2 2022/2 2023/2 2024/2 2025/2 2026/2 Initiatives to Improve ROE ✓ Although ROE remained below the cost of equity capital (10%) over the past three fiscal years, it is projected to reach 10.9% in FYE 2/26—exceeding the cost of equity ✓ Going forward, we aim to maintain ROE stably above 10% by improving the profitability of each business and enhancing capital efficiency ROE vs. Cost of Equity Capital Initiatives to Improve ROE (1) Profit improvement through market share expansion in the eBook Distribution business (2) Profit/loss improvement through progress in Strategic Investment Businesses and review of the business portfolio (3) Implementation of appropriate shareholder returns Cost of Equity Capital: Approx. 10% ✓ Continued acquisition of new commercial flows through enhanced system integration ✓ Market activation through digitization, audio conversion, and translation of text-based content ✓ A year-end dividend of ¥36 per share was paid for FYE February 2025 ✓ Going forward, we will continue to target a total payout ratio of over 30%, and consider agile share buybacks and gradual increases in payout ratio based on stock price trends ✓ Maximization of monetization opportunities through multi-use of content ✓ Support for global expansion of Japanese content ✓ Further expansion of the SC business, which has already achieved early profitability （forecast） ROE Cost of Equity Capital (%) Risk-Free Rate Beta (β) Sensitivity Risk Premium Cost of Equity Capital Stable assets / Risk-free interest rate *Based on 10-year government bond yield Company-specific risk ＋ × ＝ Approx. 10% Expected excess return on equity investments *Based on past equity market returns Calculated using CAPM 7-3. Financial Policy｜Management that is Conscious of Cost of Capital and Stock Price
110. 109 0 5 10 15 20 25 2020/2 2021/2 2022/2 2023/2 2024/2 2025/2 Initiatives to Improve PER and PBR ✓ Due to a trend of declining revenue and profit over the past two years, our recent PER and PBR have fallen compared to previous levels ✓ However, performance bottomed out in FYE February 2024, and since FYE February 2025 we have been on a recovery track with increased revenue and profit. We will continue initiatives to improve PER and PBR and work to strengthen expectations for our growth PER Trends PBR Trends （Times） （Times） Initiatives to Improve PER / PBR ✓ We will strengthen business execution toward achieving the numerical targets of our Medium-Term Management Plan, actively disclose progress, and enhance engagement with the market ✓ We will also reinforce our sustainability initiatives and expand disclosures to include non-financial information. 0 20 40 60 80 100 120 2020/2 2021/2 2022/2 2023/2 2024/2 2025/2 18.1 1.4 18.4 25.6 24.7 56.3 36.6 7.3 9.9 2.4 1.4 1.2 7-3. Financial Policy｜Management that is Conscious of Cost of Capital and Stock Price
111. 110 08 Sustainability MEDIA DO Co., Ltd. Materials for New Investors
112. 111 Basic Sustainability Policy ✓ Through co-creation with authors, publishers, users, and eBook retailers that serve as access points, we aim to build a social ecosystem aligned with our mission of “Unleashing a virtuous cycle of literary creation” and our vision of “More Content for More People!” ✓ We take pride in our responsibility to contribute to the formation of a healthy economy and the cultural advancement brought about by written works, and all our employees are united in actively engaging in corporate activities. ✓ In addressing environmental issues and social challenges, represented by the SDGs, we will promote management and strategies anchored in our mission and vision. While organizing business opportunities and risks from an ESG perspective, we will resolve social issues and achieve steady growth, for the purpose of increasing corporate value. Basic Sustainability Policy 8. Sustainability｜Basic Policy Based on the principles of growth and potential espoused by its corporate creed, the MEDIA DO Group (comprised of MEDIA DO Co., Ltd., and its consolidated subsidiaries) aspires to have a positive impact on society as a facilitator for maximizing the value provided to all stakeholders involved in the process of exercising its corporate philosophy. We thereby aim to become an organization that will thrive over the next century. At the MEDIA DO Group, we are firm believers in the potential of content as well as in the endless possibilities of all people. By connecting the unlimited potential of content and people, we seek to always function as an intermediary that unites the world and helps shape a better future for society.
113. 112 (1) Development of literary creation cycle and maximization of value thereof 8. Sustainability｜Material issues ✓ Identified material issues (10 items) as the foundation for maximizing the growth of each business and for management to continue to exist as a company, as well as issues that must be addressed ✓ Material issues are categorized from the perspectives of “ Corporate management framework,” “Framework for personal and organizational growth,” and “Governance supporting all frameworks.” Each promotion department is responsible for promoting materiality in collaboration with the Sustainability Management Committee Contribution to the cultural advances stimulated by written works Corporate management framework Framework for personal and organizational (2) Strategic investment and business portfolio optimization ✓ Reallocation of corporate resources In addition, the appropriate delegation of authority and review of regulations (3) Acquisition and development of personnel suited to MEDIA DO’s values (4) Empowerment of communities (5) Creation of Comfortable workplace environment (6) Enhancement of corporate governance (7) Commitment to compliance (8) Strengthening of information security (9) Utilization of advanced technologies ✓ Optimization of the management structure, Board of Directors, and various committees ✓ Strengthening IT governance, including internal infrastructure, and promoting industry-wide digital transformation (DX) ✓ Review of regulations and fostering company-wide awareness of compliance Governance supporting all frameworks Preservation and optimal use of natural capital ✓ Promote of TCFD compliance Aiming for Long-Term and Sustainable Enhancement of Corporate Value through Material issues
114. 113 23.5 30.0 30.7 2022 2023 2024 16.7 37.5 42.9 2022 2023 2024 33.3 37.5 42.9 2022 2023 2024 （%） （%） （%） 2020 Nikko Investor Relations “2024 Corporate Website Quality Ranking of All Listed Companies,” Overall Category, Superior Award 2021 2022 2023 2024 The Past and Future of Sustainability 2025(forecast) • Revision of stock compensation • Promotion of materiality theme + Strengthen crisis management system first selection *2 • Publication of First Integration Report Exceeding the IT industry's average of 8.1% by over 20%, providing an environment where both men and women can thrive equally • Transition to TSE Prime Market • Establishment the Sustainability Committee • Appointment of the first internally promoted female director • Identify Material Issues • Transition to Two Representative Directors • Ratio of female directors 42.9％ • Initiatives Dealing with Material Issues • Strengthening of Corporate Governance • Formulation and revision of various policies, including the Basic Policy on Governance, in line with the revised Corporate Governance Code • Appointment of the first female director • Establishment the Nomination and Compensation Committee External evaluation Ratio of female directors Ratio of outside directors Ratio of female managers*1 `1 The figures represent Media Do on a standalone basis. The latest figures are as of March 2024. For the ratio of female managers in the IT industry, refer to the “Information Service Industry Basic Statistics Survey 2023,” published by the Japan Information Technology Services Industry Association. *2 FTSE Russell confirms that MEDIA DO Co., Ltd. has been independently assessed according to the index criteria,and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible investment funds and other products. 8. Sustainability｜History of Initiatives
115. 114 Transition to Two Representative Directors from May 2024 8. Sustainability｜Corporate Governance ✓ Realize swift decision making and strengthen governance ✓ Clarify roles and accountability of both and aim to enhance corporate value while working closely together Yasushi Fujita Hiroshi Kanda President and CEO • Create corporate philosophy and identity • Build greater partnerships with industry by harnessing 30 years of executive management experience and insight • Plan integrated management strategy, develop businesses, etc. Vice President and CFO • Financial strategy and business management • Promote IR and sustainability activities, etc. • Plan and promote human capital strategy • Realize swift business execution and optimal resource allocation by covering the entire Group Career summary Apr. 2008 July. 2009 June. 2013 Jan. 2018 June. 2019 June. 2020 May. 2022 Joined UBS Securities Japan Co., Ltd. Joined Frontier Management Inc. Established Flier Inc., Director (current position) Joined the Company, General Manager in charge of Corporate Planning Office General Manager of Corporate Planning Office Executive Officer and CSO Director, CSO and CFO (current position) Career summary Apr. 1996 Apr. 1999 Dec. 2013 Mar. 2017 Sept. 2017 Mar. 2018 May 2019 Jan. 2020 Apr. 2022 Jan. 2023 Established Fuji Techno Limited Company (merged with the Company in November 2001), Representative Director Established the Company, Representative Director and President Established FIBC Co., Ltd., Representative Director and President (current position) Representative Director and Chairman of Digital Publishing Initiatives Japan Co., Ltd. (changed its company name to MEDIA DO Co., Ltd. in March 2019, and merged with the Company in June 2020) Representative Director of MEDIA DO TECH TOKUSHIMA Co., Ltd. Representative Director and Group CEO of the Company Representative Director and Chairman of MEDIA DO Co., Ltd. (merged with Digital Publishing Initiatives Japan Co., Ltd. in March 2019) Representative Director, President, Executive Officer, and CEO of the Company President and CEO of the Company (current position) Representative Director of TOKUSHIMA INNOVATION BASE ASSOCIATION (current position) Representative Director of GAMBAROU TOKUSHIMA Co., Ltd. (current position) Representative Director of xIB JAPAN (current position)
116. 115 * Chief Information Officer Yasushi Fujita President and CEO Member of Nomination and Remuneration Advisory Committee Hiroshi Kanda Vice President and CFO Kayoko Hanamura Director and COO Koichi Sekiya Director Inside Directors (4) Independent Outside Directors (3) Ayako Kanamaru Haruo Miyagi Junko Mokuno Outside Director Chair of Nomination and Remuneration Advisory Committee Outside Director Member of Nomination and Remuneration Advisory Committee Outside Director Member of Nomination and Remuneration Advisory Committee Audit & Supervisory Board Members (3) Kazuyoshi Ohwada Standing Audit & Supervisory Board Member Tsuyoshi Shiina Outside Audit & Supervisory Board Member Makoto Nakajima Standing Outside Audit & Supervisory Board Member Minoru Mikoda Shoichiro Tokoro Kaname Nakano Executive Officer Senior Executive Officer Accounting Executive Officer and CIO* Yuichiro Onuki Executive Officer In Charge of eBook Distribution Business New appointment New appointment Executive Officers (6) Female board representation 42.9% (3 of 7 positions) 8. Sustainability｜Corporate Governance Mayu Hara Executive Officer and President & Group CEO Office – Corporate Identity Strategy) Ikuto Usuki Executive Officer and President, GAMBAROU TOKUSHIMA Co., Ltd. Executive Structure from June 2025
117. 116 Information presented herein includes forward-looking statements. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks, all of which entail uncertainties that could lead to outcomes that substantively differ from the forward- looking statements’ content. Such risks and uncertainties include general industry and market conditions and general domestic and international economic conditions, including interest rate and exchange rate movements. MEDIA DO assumes no responsibility to update or revise forward-looking statements contained herein, even if new information becomes available or unanticipated events occur. Financial information that was not independently audited is also contained herein. MEDIA DO does not warrant the accuracy of any such unaudited information. Readers are accordingly advised against making investment or other decisions in sole reliance on information contained herein. https://mediado.jp/english/ Forward-looking statement and unaudited information disclaimers