4 In the Vanguard of Creativity Ultraman at TYO Create a Powerful Ultramanwith the new knowledge tag TYO Inc. 2-21-7 Kami-Osaki, Shinagawa-ku, Tokyo 141-0021, Japan http://group.tyo.jp/ Neｗ Face JASDAQ Stock Code: 4358 ● TSUBURAYA PRODUCTIONS CO., LTD. ● ZEO Corporation In the vanguard of creativity ● Light Work Co., Ltd. ● Great Works AB ● dwarf Inc. ● LUDENS CO., LTD. The world of craftsmanship ● TYO Productions Inc. ©Tsuburaya Productions that brings happiness to creator and viewer alike A Transformed Management Strategy Interview 2008 Neｗ Face ● Theoria Communications Inc. TYO Creative Business City ● COM Co., Ltd. ● 1st Avenue Inc. ● Haxen International Inc. Motivating the spirit of ● DOGA KOBO Inc. creativity for the next TYO Management Strategy Interview 2007 ―Interview with new directors― TYO Fifteen talented men that the next generation requires Creative Business City Town Block Planning Management Strategy Interview 2008 Know-how that capitalizes on change and operational capability with originality otivating the spirit of creativity for the next TYO Providing an “environment” where tal- business of rights management. ented creators can work at the highest TYO also is involved in new enterprises, level, TYO continues to produce excep- too, such establishing a game software tional content for every sector of the video sales company and becoming involved business. TYO has now established an with the Tsuburaya Productions. There are overseas presence in China and the West, 43 distinctive companies at present in this so there has been no change in its consis- group, which rang up consolidated sales of tent approach of responding to challenges. 18.9 billion yen in the year ended July 2007 TYO also has reorganized its corporate (a shortened 10-month accounting period). structure. TYO’s TV commercial planning The“creative engine TYO” has relaunched and production division was spun off as itself in an environment characterized by the independent TYO Productions Inc., and the increasing diversification of media and TYO has strengthened the functions of the growth of interactive content. Hiroaki the core TYO entity for the overall control Yoshida, TYO Group President and CEO, of the corporate group. Further, TYO has describes its vibrant strategy. taken on a full-fledged commitment to the reorganizing its structure in response to mercials accounted for 54% of total rev- TYO continues to be a company that maintains its focus those trends and expanding and reducing enue. This indicates the extent to which on the forefront of the age the roster of group companies. the breadth of media has grown and The consistent basis of our operating phi- video content has diverged. These are the In the 26 years since its founding, TYO has losophy since our founding has been to trends of an age characterized by diversi- built a brand in the industry by providing the create business using the best talent and fication in and individuality. market with video content of exceptional generate profits without being contented In August 2008, to keep ahead of the quality. The video industry has been trans- with the status quo. trends of the times, we spun off the TV formed during this period, with changes TYO was launched with its main business commercial planning and production divi- that include the shift from analog to digital being the production of TV commercials. sion of the main TYO unit and created and the appearance of a succession of A look at the sales ratio for each busi- the independent TYO Productions Inc. new media. TYO has properly hewed to the ness segment during the previous term, to create a highly efficient and profitable course indicated by contemporary trends, however, shows that terrestrial TV com- business structure for all the TYO group A Transformed TYO C reative Business City 01 TYO Business Vol 4 Hiroaki Yoshida President and CEO, TYO Inc. TYO Group representative companies. As a result, the main TYO unit ing who became the will no longer be involved with video pro- corporate core and duction. Instead, the core of its operations expanded our busi- will be to create business and provide the n e s s , t h e s e c o n d infrastructure that maximizes the profit- g e n e r a t i o n i s t h e ability of the group companies. g ro u p a s a w h o l e We also have appointed 11 new directors with the addition of from each of our business segments to the new directors from the organizational when that occurs. Are not companies join the four directors we have had since restructuring during the term under review that continue to undertake drastic reforms our founding. The directors will distill views to create an all-round video company. while accurately gauging the trends of the from a variety of perspectives to create a The newly appointed directors work at age the only ones capable of producing consensus and make decisions for TYO posts that correspond to the president of results that meet the needs of that age? operations. our group companies. They have been It is my sense after 26 years in this com- Further, in our industry, advertising and PR selected from every division, including pany that business requires no special sales tend to be concentrated in March advertising, the Web, entertainment, con- maneuvers. The most important factors and September. That made it difficult to tent solutions, the international division, are to increase corporate competitiveness ascertain our actual performance by the the administration division, finance, and by determining how consistently results end of the interim period in March and the business strategies. This expansion in are achieved and creating an organiza- full fiscal year in September. Therefore, our the breadth of information collated at the tional structure that does not overlook fiscal year will now conclude at the end of Board of Directors enables the examina- profit opportunities. Success in business July instead of September to enable us to tion and thorough scrutiny of the consoli- is not possible without the accumulation present sound and stable figures for our dated results from the perspective of the of these daily efforts. performance. group as a whole. Since its founding, TYO has constructed TYO is now facing a critical turning point its own methods for converting talent Reforming its organizational in its existence, but there will continue to to business and generating profits. We structure with an eye to the future be periods in the future in which change will not waver in following our precept of will be essential. It is our intention to cre- creating business using the best talent, If the first TYO generation could be ate a structure capable of eliciting the regardless of the changes in our organiza- described as the members at our found- maximum in organizational capabilities tion and structure. A Transformed TYO C reative Business City TYO Business Vol 4 02 Management Strategy Interview 2008 gained from its toys. In business, there is strength in start- operation. In other ing over from scratch. The top manage- our business divi- ment of Tsuburaya Productions consists sions, however, it of extremely capable people. President is apparent that Tsuneyuki Morishima has an exceptional earnings manage- production sense. The vice-presidents are ment has yet to Shinichi Ooka, who is an expert in filming, be as fully imple- and Junya Okabe, who has remarkable mented as it has abilities in the molding. We firmly believe been in the main that blending the abilities of these three unit. We intend men and incorporating a vision of over- to c o n d u c t th e seas expansion in the future will result in complete over- the successful growth of Tsuburaya Pro- sight of finances in ductions. the TYO manner Until now, TYO has never handled a with the result of character like Ultraman. We think that achieving sound Ultraman will become an important fac- business condi- tor in our multi-brand strategy from the tions for the entire perspective of the steady growth of rights company, while management. We view this heavy respon- r e s p e c t i n g t h e sibility as an opportunity and will use it to i n d i v i d u a l i t y of create yet another new “aspect” for TYO. each of the group TYO’s main unit: companies. No matter how many excel- For the vitality of TYO Playing a multifunctional role lent products we create, we will in the now and in the future in the future end lose the ability to create them unless With the spin-off of the TV commer- we have established excellent business The Web is serving as the agent driving cial planning and production division principles. We cannot be creative without the full-fledged media diversification now as an independent company, TYO will sound operations. We will surely make underway. Among all TYO sales, sales strengthen its role in the future as a hold- improvements if we rationally consider for this medium are growing steadily. The ing company that provides the business each of our businesses and companies. linkage between the Web and TV com- infrastructure to improve overall group This requires bold and decisive measures, mercials is already taken as a matter profitability. but it is the important role of the main TYO of course, and demand is projected to It will also launch a full-fledged rights unit to have a complete grasp of the situa- increase in the future. Collaboration within management business that will include tion down to the smallest details.