YOSHIMOTO KOGYO Group’s Business Model YOSHIMOTO KOGYO CO.,LTD Corporate & Financial Strategy Feb-2009 YOSHIMOTO KOGYO Group Corporate Strategy Mission of the YOSHIMOTO KOGYO Group 「 To contribute to society as an association of creators」 Goa l o f t he YOSHIMOTO KOGYO Group 「 To be the leading content producing company through a foundation on talent management 」 1 YOSHIMOTO KOGYO Group’s Vertically Integrated Business Model Market/Consumers (Example) Business Revenue Toyota responds promptly to the external flow flow environment. For instance, new market Theaters,「YOSHIMOTO THEATERS」(BB), R&C entryyp in response to the op pgening of the Eastern European market or growth in the Distributions & ① MUGENDAI Hall (Japan’s first broadband studio) Chinese market (Æ This corresponds to Contents ② NGK, LUMINE the YOSHIMOTO, etc. YOSHIMOTO KOGYO’s broadband (theater 365 days per year) market entry). Another example, Providers ③ Sponsored Contents embarking on such new-type vehicle design as SUVs (Æ This corresponds to YOSHIMOTO KOGYO’s development of paid content and sponsored content business models). Programs for Terrestrial TV/BS/CS, etc. However, this does not mean that Toyota Contents (over 2,700 per year), Packaged Media is transforming its fundamental business Productions model. Program requests from America, Europe and Asia The reason Toyota is capable of responding in the above fields is because strength in automobile development and manufacturing are Toyota fundamentals. In the case of YOSHIMOTO KOGYO, Talent, Artists, Athlete these fundamental strengths are talent Management & management and content production. Infrastructure Sanshi Katsura, Sanma Akashiya, Downtown, Shinsuke Shimada, DliDeveloping an ditdid introducing new cars f or Fayray, Takashi Saito, Kosuke Fukutome, etc., new markets. Doing this consistently is talent roster of over 800 what builds Toyota’s strength further . YOSHIMOTO KOGYO builds further strength and growth by consistently producing content for new content NSC Talent Pool / YOSHIMOTO Creative College markets based on the fundamentals of talent management. 2 Growth Strategy and Changes in the External Environment ＴＶ ①Sponsored mobile ＰＣ Content Business Model Creation Intel ②Paid DVD Faith and Broadband D2C Yahoo! Viewer 成 Japan 長 ③Free Sponsor Distribution Growth Business Model Strengthening Terrestrial ＴＶ ④Terrestrial TV 3 Key Points of Growth Strategy ① Sponsored Content Companies have been shifting their ad spend from newspapers and radio to broadband. Sponsored Content advertising is gaining notice for its high cost performance and strong message impact. ② Paid DVD & Broadband 【Sponsored Content Highlights】 Take advantage of the remarkable growth being experienced in paid content via such channels as for-sale DVDs, “one-seg” mobile TV and broadband. ③ Free Distribution Make use of free content distribution as effective tools for product promotion and facilities for the development of young talent. ④ Terrestrial Broadcast Japan’s TV ad market is said to be 2-2.5 trillion yen, and Yoshimoto Kogyo’s share is in the 10s of billion yen. There is potential for market growth and to work with broadcast satellite deployment by terrestrial TV stations. YhitKYoshimoto Kogyo’s stthiitbitrength is its business mo dlthtdel that encompasses the full value chain, from rights ownership to content production. It is this business model that can prevail in the market upheaval that will accompany the 2011 switch of terrestrial broadcasting to digital. 4 Multi-use of Content ■ Yoshimoto Kogyo(talent) Basic Scheme DVD ＜若手劇場＞<Young Stage> ＜<Mainﾒｲﾝ 劇場 Stage＞> ＮＳＣNSC BaseBase Yoshimoto NGKNGK TV Mugendai∞ホール Hall Lumineﾙﾐﾈtheよしもと the Yoshimoto Broadband ‘etc. ＬＩＶＥ ＳＴＡＮＤ Ｒａｄｉｏ Ｈｏｓｏsｈｉｔｓｕ ＤＶＤ ＬＩＶＥ Broadcast放送 ＦＭ放送FM 書籍 ＣＤ Live Broadcast Books Internet Distribution Smooth implementation of multi-use The Homeless Student is a Yoshimoto Group strength Feature 映画Film Manga Deployment of multi-use makes the analysis Books書籍 漫画(graphic novel) TV of business profit by sector more difficult Dramaドラマ 5.