■KeyHolder ＜4712＞ Business Overview

2. Business content

(1) Comprehensive entertainment business

The general entertainment business can be broadly divided into a live entertainment division and a digital content division. The live entertainment division carries out production operations that can be supported by many fans through the management of various IPs such as affiliated artists, models, actors, entertainers, and athletes. Above all, female idol groups such as Nogizaka46 (belonging to Nogizaka46 (same)), SKE48 (belonging to Zest), and the 5-person rock band Novelbright (belonging to Zest) have succeeded in large-scale events such as live shows and concerts. Talents such as Wakatsuki Yumi, Ikoma Rina, Oguri Yui, etc. have raised their ratings as actors, and Ego Yuna, who began solo activities after graduating from SKE48, has released a solo single, and in addition to Furuhata Nawa, who is also challenging the actor industry after graduating from SKE48, former Japanese national handball captain Doi Remi Anri is proud of 7 million followers on TikTok, etc., so they have gathered around their feet. In the digital content division, 10ANTZ is involved in the planning, development, and operation of romance simulation game apps that are official game applications for smartphones, and can simulate romance with idols, such as Nogizaka46's official “Nogi Ren”, Hinatazaka46's official “Sakukoi,” and Sakurazaka46's official “Sakukoi.” Regardless of the form, it seems that there is no other company that handles all of the Sakamichi Group's IPs with one company, and the policy is to create group synergy with the company's in-house IP, video production, etc. while continuing the application management business related to the Sakamichi Group. Also, since Bijoux was newly established in the first semester, we have built a system to create the next generation of in-house IP by going through everything from auditions to operation and management within the group.

(2) Video production business

In the video production business, we plan and produce various video contents such as TV programs, MVs, commercials, etc., produce films by participating in production committees, train and dispatch video production staff, and rent and post production business for professional video equipment. In TV program production, which is the main axis, by utilizing the company's planning and production capabilities, the fact that production projects requested by each TV station have been actively and steadily continued has been evaluated, leading to the acquisition of further new projects such as specials, etc., and the virtuous cycle where specials are made into regular programs is increasing. Currently, “Chidori Demon Renchan (Fuji TV),” “Prank Journey (Fuji TV),” and “Enthusiastic Enthusiast! It boasts a track record of 16 regular programs, mainly variety shows such as “(TBS)” and “Shukujiri Sensei (TV Asahi).” As a video work, the Netflix comedy series “Talk Survivor!” has been distributed in over 190 countries around the world They are involved in film production for season 2 (2023) of “~Dramas Where Talks Are Entertained~ (Netflix)”, “Sasaki, In, My Mine (released in 2020),” which won awards at various film festivals, and “Young Strangers (scheduled to be released in 2024),” which was co-produced by France, Korea, Hong Kong, and Japan. Also, as a new business, TOKYO ROCK STUDIO is carrying out back office operations* at global standard video production sites, and is developing lobbying activities related to attracting locations within Japan and international joint planning. Recently, they have been working on operations related to “TOKYO VICE (2024 distribution starts)” season 2, which is co-produced by US Max (formerly HBO Max) and WOWOW, and “WHAT DIVIDES US (scheduled to crank in 2025),” where top creators from Japan and the US gather to question the world again about the nuclear world. Note that the cost of video production is increasing year by year, but the company plans to cover it with its strong planning and production capabilities.

※ Back office work: Management work that undertakes “production accounting” work etc. at global standard video production sites in one place.

(3) Advertising agency business

The advertising agency business can be broadly divided into a digital advertising division and an advertising agency division. The digital advertising division produces and operates video advertisements for digital advertising platforms that are increasing in value as advertising media, such as TikTok, Instagram, Facebook, and LINE Ads Platform, with YouTube as the main axis, and is also involved in casting for talents and artists. Going forward, we will continue to develop the internet advertising business and the internet media business, promote the expansion of orders for advertising projects by utilizing group synergies such as video and IP, and aim to expand the business by actively expanding into new fields such as real estate and finance. The advertising agency division plans suitable for commercials and sales promotion projects requested by companies, and is working on various projects such as new commercials for CHINTAI Co., Ltd. by Nogizaka46's official rival “Blue Sky I Wanted to See,” centering on internet promotion for 7-Eleven Japan. Recently, allfuz established HMFJ LLC with Award Co., Ltd., which plans and manages Japan's largest fashion and music event “GirlsAward.” The company plans to develop festival performances and event production, mainly by inviting artists from overseas, such as Korea.

(Written by FISCO Visiting Analyst Miyata Hitomitsu)