Announcement on the Establishment of a Joint Venture with CJ ENM Co., Ltd. and TBS Holdings, Inc.

Purpose and Overview of the Joint Venture Establishment

To further grow the largest content distribution service in Japan, "U-NEXT," our company has decided to establish a joint venture with Korean entertainment company CJ ENM and TBS Holdings, Inc. The joint venture will engage in planning, IP procurement and investment, and development of video content. The capital stock will be 1,250 million yen, with shareholding ratios of CJ ENM 51%, TBS HD 40%, and our company 9%. The establishment is scheduled for April 2026 and will be located within Tokyo.

Overview of Joint Venture Partners and Future Outlook

CJ ENM, the joint venture partner, is a major Korean entertainment company with sales ranging from approximately 436.8 billion to 523.1 billion Korean won over the past three years, though net income attributable to owners of parent has remained in the red. On the other hand, TBS Holdings is a leading Japanese media company with sales of approximately 368.1 billion to 406.7 billion yen over the past three years and a trend of increasing net income attributable to owners of parent. The impact of this joint venture agreement on our company’s consolidated performance for the current fiscal year is expected to be minimal, aiming to strengthen the content lineup as part of our growth strategy going forward.