Hokkaido Nippon-Ham Fighters Ballpark Project

Speaker Profiles

Ken Maezawa Career summary

Executive Director and Business ● Pasona Inc. Operation General Manager of ● J Sakazaki Marketing Ltd. Fighters Sports & Entertainment Co., ✓ Engaged in sports businesses with Mr. Jack Sakazaki, a leading figure in sports marketing. Ltd. Assigned to the establishment of a professional baseball league in China and marketing for a national team. ● Hokkaido Nippon-Ham Fighters Baseball Club Co., Ltd. ✓ Strengthened Fighters’ business foundation in Hokkaido and also contributed to the establishment of Pacific League Marketing Corporation, a joint company including the six teams of the Pacific League, and formulation of its business plans. ● Yokohama DeNA BayStars Baseball Club, Inc. ✓ Took part in the restructuring of a new corporate organization and business foundation for the BayStars after the team was acquired. Formulated a scenario for a cooperation system with Yokohama Stadium and organized a partnership with the government. ● Nippon Professional Baseball Organization ✓ Developed and implemented business strategies for Samurai Japan, the Japanese national team. ● Hokkaido Nippon-Ham Fighters Baseball Club Co., Ltd. Hitoshi Mitani Executive Director and Business Career summary Operation Vice General Manager of ● Sumitomo Corporation Fighters Sports & Entertainment ✓ Engaged in fund raising and operations, the conclusion of large commitment lines and Co., Ltd. financial support for investments. ● ORIX Baseball Club Co., Ltd. ✓ Reviewed the business foundations, marketing methods and other practices of the ORIX Buffaloes after it merged with the Kintetsu Buffaloes. Mitani was also involved in the purchase of Osaka Dome. ● GREE, Inc. ● Hokkaido Nippon-Ham Fighters Baseball Club Co., Ltd.

1. Outline of the New Ballpark

2. Schedule and Progress

3. Balance of Payments

4. Creation of Social Value

5. Actions to Address the COVID-19 Coronavirus and Other Infectious Diseases

１．Outline of the New Ballpark

２．Schedule and Progress

３．Balance of Payments

４．Creation of Social Value

5. Actions to Address the COVID-19 Coronavirus and Other Infectious Diseases

Trade area covering the area between Sapporo Sta. and Chitose Sta. that is within 30 mins using the Rapid Airport Area within 60 min. area, train and the towns surrounding Sapporo towns neighboring Sapporo that are within 60 min. using the Rapid Airport train.

Area within 30 min. area, between Sapporo Sta. and Chitose Sta.

Population of Hokkaido by age Population by age group from the 2019 Basic Resident Register (as of January 1, 2019)

800 thousand 700 thousand 600 thousand 500 thousand 400 thousand 300 thousand 200 thousand 100 thousand

100 Population of 0 10 20 30 40 50 60 70 80 90 to 9 to 19 to 29 to 39 to 49 to 59 to 69 to 79 to 89 to 99 and over Hokkaido

1. Outline of the New Ballpark Ballpark Specs

Specifications Folding roof/natural grass field Building area Approx. 50,000㎡ Total floor area Approx. 100,000㎡ Capacity Approx. 35,000 people (Approx. 30,000 seats) Structure RC structure/S structure No. of floors Two basement floors under the field Six aboveground floors (70 m above the ground) Opening structure Single roof sliding method (Double roof/one fixed roof) Total construction cost

60 billion yen * Including surrounding development costs

The 360° concourse enables spectators to watch the game from anywhere in the building.

Japan’s first retractable-roof ballpark with natural grass

The natural-grass field maximizes player performance.

Offering many different ways to watch baseball games renews enjoyment.

Offering many different The all-glass structure enables ways to watch baseball unprecedented openness. games renews enjoyment.

(1) Adds to spectators ability (3) Increases and diversifies the way to enjoy the atmosphere to enjoy the game A variety of food and drink services The distance between will be provided. spectator stands and the field Traditionally, the food available at will be one of the shortest in ballparks has been considered MLB ballparks, and the second-rate. In contrast, the new shortest in Japan. ballpark will offer VIP rooms, The engaging atmosphere restaurants and food and drink adds to the enjoyment of geared toward the customers. watching sports. We pursue the kind of ballpark you look forward to eating at. (2) Enhances entertainment value A hotel will be included on the premises of the ballpark for Video boards that will be 86 customers coming from remote meters wide and 16 meters places. We will provide tall will be placed on two unprecedented baseball game- sides. They are among the watching experiences. world’s largest. This will be the world’s first ballpark The cutting-edge video and equipped with a natural hot spring. sound system will undoubtedly You can soak in the hot tub while *The pictures show the planned bring a great deal of watching a game. appearance of these parts of the excitement to the entire ballpark. Designs have not yet been The hot spring has already been finalized. stadium. excavated. ・Conventionally, ballparks are mainly geared toward people who like to watch sports (baseball). The new ballpark will be a place for everyone, even those less interested in watching sports, to enjoy the atmosphere with friends and family. ・Conventionally, it is assumed that spectators will stay in the building for about one hour plus the length of the baseball game. The new ballpark will be designed to be a facility and space where people are able to spend a half day or even a whole day.

・ The construction site has an area of 32 hectares, and the ballpark will occupy 5 of these hectares. ・ A master plan for the whole site is being formulated. It will be laid out like the above picture. We will start to readjust the land on the site. We will use the mixed-use thinking that has already become common in the U.S. and European sports markets. ・ The development of the surrounding area follows a business model that in principle has been implemented by multiple business partners (space for collaborative creation). ・ By the beginning of 2023, the majority of the site will be a parking lot. By 2027, a new nearby train station will begin operating. Town development will progress in phases.

１．Outline of the New Ballpark

２．Schedule and Progress

３．Balance of Payments

４．Creation of Social Value

5. Actions to Address the COVID-19 Coronavirus and Other Infectious Diseases

Now

2015 2016 2017 2018 2019 2020 2021 2022 2023

★ ★ ★ ★ ★ Project starts Construction completed Ballpark Site is decided Construction (December 2022) (spring 2015) (October 2018) starts begins (May 2020) operating ★ (March 2023) FSE established (October 2019)

(1) Planning phase (2) Design phase (3) Construction phase

・ Construction began in May 2020. Construction of the field on the second basement level, the spectator stands and the roof gutters has started.

・ To date, 25% of construction has been completed.

*Photo taken in November before the snowy season began.

Photo taken December 10, 2020.

１．Outline of the New Ballpark

２．Schedule and Progress

３．Balance of Payments

４．Creation of Social Value

5. Actions to Address the COVID-19 Coronavirus and Other Infectious Diseases

Business environment New ballpark Item Classification of revenue (2023 and after) Remarks Now

・ The current stadium is also used for soccer games. Globally, it is the stadium with the longest distance between (1) Tickets the spectator stands and players when used for a baseball △ game. This spoils the atmosphere of watching a baseball game ◎ live. The uniformity of the seats prevents the ways spectators enjoy games from being more diverse.

・ Currently, at least 30％ of the sales of team and player goods (2) Goods must be paid as commissions. The new ballpark will not have Business ☓ such commissions. with ◎ individuals (B2C) ・ Currently, no food or drink is available at the stadium. (3) Food and drink The new ballpark will enable spectators to feel the presence ☓ of a baseball team whose parent company is a food ◎ manufacturer.

(4) Other revenue ・ This includes revenue from fan clubs and others. The company owning its own ballpark adds to its freedom to offer from B2C business △ ◎ services to fan club members.

・ The new ballpark will enable greater freedom to position cameras for TV and internet broadcasting and make it possible (5) Broadcasting rights to capture video like we have never seen before. This is ○ ◎ positive for content production for social media and other online platforms as well as broadcasting rights. ・ To date, all the sponsor ads inside the stadium belong to Business with corporations Sapporo Dome. After the new ballpark begins operations, they (B2B) (6) Advertising will all belong to our company. An increase in revenue from ☓ ◎ ads can be expected from the ability to place ads on non- signboard spaces.

(7) Other revenue ・ Revenue from companies using the Fighters’ logo and from B2B business ○ ○ mascots for licensing for videogames and product advertising

１．Outline of the New Ballpark

２．Schedule and Progress

３．Balance of Payments

４．Creation of Social Value

5. Actions to Address the COVID-19 Coronavirus and Other Infectious Diseases

Develop a space for collaborative creation: Develop a space that is a symbol of Hokkaido: Ensure that many different local governments, organizations, Publicize the value and attractiveness of Hokkaido, both domestically companies, and people who sympathize with the concept of a sports and internationally, and, by doing so, create a space that is a symbol community and Ballpark are involved in and collaboratively create the of Hokkaido’s identity and where local people can share dreams, be space. proud of and be attached to. Concept

Develop a space that develops the community. In other words, ensure sustainable town development.

Prefectural Brand Image Ranking Inbound foreign tourists 3.12 million people Source: Survey on the Number of Inbound 1st place Tourists in Hokkaido (2018) for 11 consecutive years Source: Regional Brand Survey 2019

Number of tourists (within Hokkaido, from prefectures other than Hokkaido, and from foreign countries) Total tourism consumption (within 55.2 million people Hokkaido, from prefectures other than Source: Survey on the Number of Inbound Hokkaido, and from foreign countries) Tourists in Hokkaido (2018) 1.4298 trillion yen Source: Survey on the Number of Inbound Tourists in Hokkaido (2018)

2020 2030 2030 Seven airports privatized 2023 Campaign to host a Extending the Hokkaido To promote the use of and improve Sapporo Shinkansen line services at Shin-chitose, Wakkanai, Hokkaido Ballpark Olympic Games It has been decided to extend the Kushiro, Hakodate, Asahikawa, Sapporo is campaigning to host Hokkaido Shinkansen line to Sapporo Village opens station. It currently connects Tokyo Obihiro, and Memanbetsu Airports, a second Sapporo Winter station to Shin-hakodate Hokuto station their operations were privatized. Olympics in 2030. in four hours.

Hokkaido Ballpark pursues the following “two functions.”

(1) A showcase (2) A tourism hub  The ballpark will showcase the attractions of  Develop and organize a tangible hub for tourists.  Cooperate with local governments, public transportation and private Hokkaido. businesses to prepare a broad range of mobility options.  Lead long-term branding, not short-term.

To many different parts of Hokkaido

To neighboring municipalities

Create a space that will be a symbol of Hokkaido and aim to (1) make the ballpark and its surrounding area more attractive, (2) attract tourists from within and outside Hokkaido and (3) encourage these tourists to travel all over Hokkaido.

Stock - An emergency drainage tank will be - Establish a disaster supply warehouse Drainage piling storing drinking water, food, blankets, etc. installed in case of the failure of the drainage pipes or sewers on the premises. Secure spaces in and out of the stadium for → The drainage tank would be capable of large vehicles to enter. Rescue supporting 35,000 people for three days. → This enables the easy carrying in of relief supplies and establishment of bases for Water - Secure the volume of water that would be rescue activities. supply necessary if a disaster were to occur during Evacua - In the event of disaster, the field and a baseball game. tion concourse would be left open to enable use → Ensure that 35,000 people can be supplied as evacuation area. with sufficient clean water for three days. - The number of toilets will be determined in - Install a well pump capable of working accordance with the Sphere Standards. using an emergency power source to make it possible to use well water to clean toilets even during a blackout. 2023 – 2037 (15-year contract)

Contract for energy services

Energy-related equipment (Owned by Hokkaido Electric Power) ES CON FIELD Design HOKKAIDO Heat pump Install energy-related equipment equipment Electricity, Boiler Procure gas and equipment equipment heat (air Construct conditioning) Cogeneration (cold and warm water) equipment Maintain Procure electricity, gas Absorption and water chiller-heater Operate

Control energy

Energy service fees

These are regarded as our own commitments.

The Fighters will pursue these commitments as a part of the NH Group. The Fighters The Fighters advance continue to be partnerships involved in with the public community The Fighters and private The Fighters The Fighters The Fighters development in support actions to sectors and engage in continue to be maintain an a safe, resilient help children get committed to educational with society, awareness- and sustainable The Fighters out of poverty supportive program for and strengthen and/or the raising manner. They advocate the measures relating children based on global situations in activities to to the prevention will also harmonization advanced partnerships for which they eat sustainably of alcohol and exercise The Fighters maintain their of lifestyles sustainable alone without a secure food drug abuse, with physiology and endorse clean resilience in the with nature, family member or the goal of development. and improve other academic energy and The Fighters contribute face of disaster. engage in other person helping people The Fighters The Fighters create people’s knowledge. The and recommend to greater access to present, and contribute to engage in information and awareness- stay healthy. By Fighters also worthy, humanizing actions to ensure nutrition. the initiatives for communication raising raising traffic provide programs jobs, protect the technology and build places for children. safety awareness, encouraging empowerment efficient energy rights of people from infrastructure for the activities to To achieve this, the Fighters will students to read of women in use. diverse backgrounds technology-based prevent food the Fighters assist while they work, and development of next- also contribute to and be involved society and the generation industries. waste and self-support the reduction of develop safe and Moreover, the Fighters in society. ensuring of secure working pursue the facilities and deaths and provide opportunities for equal rights. environments. demonstration reduction of children’s eateries. injuries from experiments for new traffic accidents. technologies. food loss.

2008 2009 2014 2015 2016 2019 The Footstep A reading Food Counter, an The Faita! Fund, a CSR encouragement activity assisting project for the ECO Project Fighters walking activity History starts. Foundation activity starts. self-support reconstruction of for the donation facilities, begins disaster-stricken established of wheelchairs, operating. farms, starts. . begins

１．Outline of the New Ballpark

２．Schedule and Progress

３．Balance of Payments

４．Creation of Social Value

5. Actions to Address the COVID-19 Coronavirus and Other Infectious Diseases

Total floor area of the Total floor area per spectator (m2) ballpark as a whole (m2) 140,000 4.50

139,355 4.11

4.00 130,000 Total floor area per 3.50 3.06 spectator (m2) 120,000 123,152 120,774 2.85 3.00 2.66 2.63 2.63 2.66 2.55 117,359 2.46 2.47 2.45 110,000 2.35 2.39 2.35 2.25 2.50 111,484 111,484 111,484 2.14

105,909 106,838 2.00 100,000 102,193 102,193

1.50

90,000 92,903 92,903

90,116 89,837 1.00 86,214 80,000 0.50

70,000 0.00 SunTrust Marlins Park Target Field Citi Field Yankee Nationals Busch Petco Park Great Citizens Bank Miller Park PNC Park AT&T Park Comerica Minute Maid ES CON Park Stadium Park Stadium American Park Park Park FIELD Ball Park HOKKAIDO

・ The total floor area of the Sapporo Dome is 98,232 m2 with 2.32 m2 of floor area per spectator.

Copy Right © Fighters Sports & Entertainment Co., Ltd. All Rights Reserved 26 5. Actions to Address the COVID-19 Coronavirus and Other Infectious Diseases– From Device and Operational Perspectives - ■ Device-based actions ■ Operational actions

・ In 2020, we accumulated expertise in, for example, selling tickets for seats in ways that ensures social distancing. Similar actions will be possible at the new ballpark. ・ For social distancing, a system to keep people updated on congestion status is being discussed. ・ Regarding the hygienic environment, the availability of ・ A system using AI-based security cameras and alcohol-based disinfectant, the measurement of other information and communication spectators’ body temperatures and other actions will technologies will also be introduced. be improved.