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News Release

INCJ to sell its shares in Multimedia Broadcasting

Tokyo, March 31, 2020 – INCJ, Ltd. (“INCJ”) announced that it has sold all its shares in Japan Multimedia Broadcasting Co., Ltd. (“Japan Multimedia”) to FM Broadcasting Co., Ltd (“Tokyo FM”).

About Japan Multimedia Broadcasting Co., Ltd. Established: January 2014 (established as BIC Co., Ltd., firm name changed in 2017) Headquarters: Chiyoda-ku, Tokyo Representative: President Kazuhiko Taira Business outline: Overall business planning and development related to V-Low multimedia broadcasting, including broadcasting facilities, service & content, and devices (receiving terminals), and related business

About TOKYO FM Broadcasting Co., Ltd. Established: March 1970 Headquarters: Chiyoda-ku, Tokyo Representative: President Osamu Kurosaka Business outline: Specified terrestrial basic broadcaster that uses very high frequency broadcasting (FM radio broadcasting) for Tokyo

About INCJ, Ltd. INCJ, Ltd. was established in September 2018 via company split from Innovation Network Corporation of Japan (INCJ). INCJ was established in July 2009 with the aim of overcoming boundaries between companies and industries, creating and nurturing key industries via open innovation for the prosperity of future generations. Following revisions to its governing law—the Industrial Competitiveness Enhancement Act—the continuing company changed its name to Japan Investment Corporation (JIC) and began new activities. INCJ, Ltd. is mandated until March 2025 to pursue the activities of the original Innovation Network Corporation of Japan, engaging in “Value Up” initiatives at portfolio companies, making additional and milestone investments, and developing exit strategies from investments in portfolio companies. URL: http://www.incj.co.jp/english/

Appendix

Target: Japan Multimedia Broadcasting Co., Ltd. Established: January 2014 (established as BIC Co., Ltd., firm name changed in 2017) Headquarters: Chiyoda-ku, Tokyo Representative: President Kazuhiko Taira Business outline: Overall business planning and development related to V-Low multimedia broadcasting, including broadcasting facilities, service & content, devices (receiving terminals), and related business

Details of investment Authorized investment: JPY 1 billion (maximum) Amount invested: JPY 1 billion Investment announcement: October 2014 ‐Press release: https://www.incj.co.jp/newsroom/assets/1418099851.01.pdf (Japanese only) ‐Investment structure: https://www.incj.co.jp/english/performance/upload/docs/Japan%20Multimedia%20Broadcasting.pdf

1. Background of the investment  With the end of analog TV broadcasting in Japan in July 2011, the use of these frequency bands was mainly assigned to broadcasts on mobile devices. In particular, the frequency from 99MHz to 108MHz, called V-Low (VHF-Low), came to be used for multimedia broadcasting in regional blocks.  Prior to this in October 2009, Tokyo Multimedia Broadcasting Co., Ltd. and six other basic broadcasters (content operators) were established to run V-Low multimedia broadcasting in seven regional blocks (Kanto/Koshinetsu, Kinki, Tokai/Hokuriku, Kyushu/Okinawa, Northern Japan, Chugoku/, ).  In January 2014, a general holding company, BIC Co., Ltd., was established to promote all V- Low multimedia broadcasting. At the same time, broadcast infrastructure provider VIP Co., Ltd. was established.  INCJ contemplated the potentials for realizing new business models such as timely and apt transmission of information on emergencies and natural disasters, content production, and the creation of new business by pursuing this project. With this, INCJ decided to invest the maximum authorized amount of JPY 1 billion as growth capital in October 2014.

2. Business progress  In July 2014, VIP Co., Ltd.’s development plan for specified base stations for V-Low multimedia broadcasting in seven regional blocks was approved and the company began work on master stations. After overcoming issues with aircraft radio interference, broadcasting began when master stations were established in Tokyo, , and in March 2016. Since then, master stations and broadcast relay stations have been established in other blocks, with the latest built in , Hokkaido in April 2019.  In June 2017, BIC Co., Ltd. changed its name to Japan Multimedia Broadcasting Co., Ltd.  Two companies, TOKYO SMART CAST Co., Ltd. and Amanek telematics design Inc., started to distribute content, but performed below expectation and ceased broadcasting in FY 2019. Other companies, such as PARK24 Co., Ltd., a carpark operator, also became content providers but achieved only limited market expansion.  A local government service for disaster prevention information called V-Alert will be or has already been implemented in the following cities: Kakogawa (Hyogo Prefecture), Kitakata (), Yaizu ( Prefecture), and Akiruno (Tokyo Metropolis). Introduction plans have not been reached for other local governments.

3. Reason for exit  Based on the business progress of *the i-dio business, Tokyo FM determined that there was no prospect of growing revenue from the i-dio business in the next few years and there were limitations to what could be realized in terms of continuing the business. In October 2019, Tokyo FM announced that it would provide no further funding to the i-dio business through investments or loans. As a result, Japan Multimedia and six regional multimedia broadcasting companies announced that they would end i-dio broadcasting by the end of March 2020.  In consideration of this situation, INCJ determined that it would be difficult to achieve the original investment objective of establishing a new business model, and made the decision to sell all its shares of Japan Multimedia Broadcasting Co., Ltd. to TOKYO FM Broadcasting Co., Ltd.

*i-dio is a generic term for a broadcast service developed for V-Low multimedia broadcast that uses VHF-Low band (99MHz to 108MHz)

Press Contacts Japan Investment Corporation Communications Office: Irie, 21st Floor, Marunouchi Eiraku Building 1-4-1 Marunouchi, Chiyoda-ku, Tokyo Tel. (03) 5218-7202