MEDIA DO : Financial Results Briefing FY2020 (Ended February 2021)

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MEDIA DO Co., Ltd.

Financial Results Briefing

FY2020 (Ended February 2021)

証Securities券コードcode:：3678367

INDEX

1. Consolidated earnings highlights
2. Future growth plans

(1) eBook distribution business －Invent future eBook markets

-Media Do's NFTinitiatives

(2) eBook distribution business

－Stimulate the growth of eBook markets

1. Other businesses
2. FY2020 initiatives

3. Reference data

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Earnings Results

1. Consolidated earnings highlights

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Consolidated earnings highlights (1)

All-time record net sales and profits by virtue of eBook demand growth driven by stay-at-home consumption

Consolidated			¥83.5bn	(+27% YoY)
Net sales
Operating profit	¥2,660mn	(+44% YoY)
EBITDA	¥3,420mn (+29% YoY)
Profit attributable to	¥1,510mn	(+72% YoY)
owners of parent
Of which, eBook distribution business		¥82.3bn (+28% YoY)
Net sales
Operating profit	¥2,590mn (+39% YoY)

Sales ratio

98.6%

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Consolidated earnings highlights (2)

All-time record 4Q consolidated net sales

and EBITDA again

Quarterly consolidated	+20% YoY
net sales
24,000	(Millions of yen)

Quarterly consolidated	+5.4% YoY
EBITDA
1,000	(Millions of yen)

22,000	21,533
20,000	Net sales growth rate slowed relative to

900

We stepped up investment in 3-4Q as

1-3Q due to pirate sites' increased impact
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q
FY2016	FY2017	FY2018	FY2019	FY2020

800 explained at 2Q earnings briefing

23

700

600

500

400

300

200

100

0

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q

FY2016

FY2017

FY2018

FY2019

FY2020

Note: FY2016 data are Media Do's nonconsolidated net sales and EBITDA.	4
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Consolidated earnings highlights (3)

Net sales and profits were both a bit shy of upwardly revised forecasts, weighed down by pirate sites' impact

¥85.0bn	¥83.5bn					Attainment rate*
Revised	-1.8%
upward			¥3,550mn ¥3,420mn	Net sales
				Revised	-3.7%
				upward			98.3%
¥77.0bn							(108.5% of initial net sales forecast)
			¥3,000mn			EBITDA
Initial	Revised	Actual	Initial	Revised	Actual	96.4%
forecast	forecast		forecast	forecast
Net sales		EBITDA		(114.1% of initial net sales forecast)
* Initial and revised forecasts are forecasts disclosed on April 14 and October 13, 2020, respectively.
			Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	5

Consolidated earnings highlights (4)

FY2020 year-end DPS

¥21.00

Note: Pending Board approval scheduled for April 22, 2021

In FY2021, we plan to return to shareholders at least 20% of profit attributable to owners of parent through dividends and share buybacks, with the split between the two to be determined based largely on our share price

Note: Total return ratio = (total dividends paid + total share repurchases)

• profit attributable to owners of parent

Total return ratio

21.1% 21.1% 32.2% NA* 20.1% 20.1%

Dividends and/or share buybacks equivalent to

total return ratio of at least 20% ¥21.0

Ongoing stable dividends

¥13.0

¥10.5 ¥10.5 ¥2.5

¥8.8

¥7.2

¥10.5

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 actual actual actual actual actual planned planned

*FY2018 total return ratio was omitted because a loss attributable to owners of parent was incurred in FY2018

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Review of current medium-term management plan (MTP) (1)

Net sales surpassed MTP's target; EBITDA was

roughly in line with target

Consolidated	¥83.5bn	¥90.0bn
net sales		¥80.0bn
	¥77.0bn
¥65.8bn ¥63.0bn	Net sales
¥50.5bn			were well
		above target
			・・・
FY2018	FY2019	FY2020	FY2021	FY2022
MTP's 1st year	2nd year	3rd year	4th year	5th year

Consolidated EBITDA		¥6,000mn
			¥6,000mn
	EBITDA nearly hit
	initial target
		¥3,420mn
	¥3,500mn
		¥3,000mn	・・・
¥2,380mn¥2,600mn
		.
FY2018	FY2019	FY2020	FY2021	FY2022
MTP's 1st year	2nd year	3rd year	4th year	5th year

Actual Initial target (July 2018) Revised target (Apr. 2020) Actual Initial target (July 2018) Revised target (Apr. 2020)

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Review of current medium-term management plan (MTP) (2)

PMIand structural reforms completed

PMIof 2017 acquiree DPIJ completed

(1) Management integration	(2) Operational integration	(3) Mindset synchronization
MEDIA DO HOLDINGS/Media Do			Integrated eBook distribution			Established mission, vision, values &
merger			operations (dominant domestic			credo
Appointed 10-CxO management			market share)			Integrated/implemented other (e.g.,
team			Completed IT system integration			HR) systems

Structural reforms

(4) Cost reduction

(5) Improvement in financial condition

Farmed out operations to Media Do Tech Tokushima

Reduced infrastructure costs by integrating Media Do and DPIJ's IT systems

Improved financial condition and raised capital for M&A through share acquisition rights offering Formed capital/operational alliance with Tohan Corporation (private-placement capital raise)

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Review of current medium-term management plan (MTP) (3)

Improved financial soundness through capital raise

	Increase in shareholders' equity		Stabilization of financial balance
	(ratio)		Cash and		Net assets
	Shareholders' equity	Shareholders' equity ratio (SER)
	deposits		Announced on March 25
20,000		28.0%	30.0%		Private-placement offering to Tohan
+9.7pp		and buyback/retirement of share
		25.0%	+¥3,249mn	acquisition rights	¥2,927
16,000			mn
	18.3%	¥12,104mn	20.0%			+¥5,189
12,000
8,000			15.0%	¥12,703	mn	¥12,169
¥6,975mn
	10.0%	¥9,454	mn		mn
4,000			5.0%	mn		¥6,980
				mn
0			0.0%

As of Aug.	As of Feb. 28,	As of Aug.	As of Feb. 28,	As of Aug.	As of Feb. 28,
31, 2020	2021	31, 2020	2021	31, 2020	2021

(18th share acquisition rights issue + private-placement offering to Tohan)

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Business Strategy

2. Future growth plans

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Future growth plans

eBook	Invent future	Stimulate the
distribution	eBook	growth of eBook
business	markets	markets

Other

businesses

Proactive investment for

business expansion

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eBook distribution business

Invent future eBook

markets

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Invent future eBook markets (1)

The world Media Do aims to bring about

with blockchain technology

Existing digital content services

• central server platforms

Music/books/visual media, etc.

New content service envisioned by

Media Do

• blockchain platform

Music/books/visual media

1	Content sales	2	3
	Subscription	Advertising
	model
	model	model

4

Asset model

DCA

(no restrictions)

Spotify, Kindle, YouTube, Netflix, etc.

Digital Content Asset

(Trademarked by MEDIA DO)

Digital content with a concept of

"units" and premiumization potential

→Leveraging technology to maximize content value

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Invent future eBook markets (2)

The advent of NFTs (digital content with a concept of "units") has

ushered in a new era of digital content

	Cryptocurrencies			NFT (non-fungible tokens)
Technology	Decentralized system			Decentralized system
(Public chain)			(Public chain)
Fungibility	Fungible			Non-fungible
(1 BTC has the same value no matter			（Digital certificates of ownership with
	who owns it)			unique serial numbers; no two are the
				same）
Examples	Cryptocurrencies			Collectibles
（Bitcoin, Ethereum,			（Digital collectibles: NBA Top Shot,
	Ripple, etc.）			CryptoKitties, etc.）
				→"Ownership" concept

Existing digital content

Centralized system

Fungible

（All copies of the same content are identical no matter who owns them）

Publicly distributed eBooks,

music, visual media

（Kindle, YouTube, Spotify, etc.）

→NBA Top Shot* has racked up over 3mn trades collectively worth over $500mnsince its launch in 4Q20

Source: Dapper Labs ' website（https://www.dapperlabs.com/）

* A marketplace where US National Basketball Association fans can collect and trade photos of NBA players and video clips of plays as digital cards

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Invent future eBook markets (3)

NFT （Non-Fungible Token）

Enabling users to digitally experience the fun of collecting to

Elevate, expand and visibilize content fandom

As a first step, we are partnering with Tohan, a major

paper book wholesaler,

to build a platform that taps into Tohan's domestic network of book retailers

to connect fans with each other in real life

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Invent future eBook markets (4)

Media Do will promote DX among paper book

retailers/distribution channels as Tohan's

biggest shareholder

		Tohan commands an over one-third share of
We aim to drive market growth and DX throughout		domestic paper book distribution as a bridge
the publishing industry as a major eBook		between 3,000 publishers and 5,000 book retailers.
distributor and publishing platform linking 2,200		It is pursuing demand-driven distribution to
domestic publishers to 150 eBook retailers		structurally reform publishing distribution by, e.g.,
		reducing return rates.

Media Do is now Tohan's top shareholder (5.56% stake)

Private-placement offering of
Media Do stock	Tohan is now a top-10 shareholder
Acquisition of Tohan treasury stock	of Media Do (3.09% stake)*
	*Based on issued share count at Feb. 28, 2021

Building a new publishing ecosystem of creation and distribution

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Invent future eBook markets (5)

Aiming to revitalize Japan's book retailers by distributing

books digitally tokenized with NFTs through Tohan

Japan's bricks-and-mortar

	book retailers		Paper book readers = real fans who shop
		Limited-edition digital token at book retailers to get NFTs
		(applicable to other content
			(e.g., music, video) also)
Publishers		NFT

Paper/digital books sold at bookstores

Direct-to-fan marketing

Offering NFTs as a bonus to book purchasers should boost book retailers' sales

Currently in talks with Kadokawa, Kodansha, Shueisha and Shogakukan about rolling out NFTs

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Invent future eBook markets (6)

We plan to create an NFT marketplace together with publishers, Tohan and nationwide book retailers

Media Do NFT marketplace

Exhibit	Buy
	NFT	NFT

Owners of limited-edition NFTs

Users will be able to explore and trade NFT content with each other Marketplace will elevate, expand and visibilize content fandom

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Invent future eBook markets (7)

We will use blockchain technology to realize

a digital content collecting service that brings the concept of ownership to digital content

Sales promotion

Entertainment content sold digitally and physically will be tokenized with, e.g., digital movie ticket stubs or stickers

NFTNFT

Sales

For-sale collectibles such as trading cards and action figures will be sold as NFT content

NFT

NFT

We will stimulate growth in sales of both physical and digital entertainment content

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Invent future eBook markets (8)

NFT marketplace slated to launch

this year

Media Do NFT marketplace

(Technology to be developed by summer; service to launch by year-end)

NFTs will be globally tradable (in, e.g., JPY, USD)

Digital token sales and transaction histories will be rendered visible (enabling to authors and publishers to collect royalties on resales)

We are also currently exploring other business models besides

digital tokens

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Invent future eBook markets (9)

Major record labels and publishers have started to collaborate since alpha version was released to business associates in March

On track to launch publicly in November 2021

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Invent future eBook markets (10)

Pursuing distribution models that extract new

value from legacy video content libraries

Content library

Artists/copyright holders

(1) Online co-watching

Audience members can enjoy music and (e.g., anime) videos online together with fellow fans

			Co-watching event
Video content/sales	Organizer
Video content	Artists	Influencers	Avid fans
Sales			×
Avid fans	Followers	New fans
			Audience
Ticket
purchases
(2) New monetization model	(3) Use of fan marketing
Avid fans will unleash new value from	Perpetual tracking and analysis of users' content
legacy content, generating incremental	consumption histories will support marketing
revenue			activities

GREET aims to bring artists, organizers and audiences together in shared experiences

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eBook distribution business

Stimulate the growth of

eBook markets

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Stimulate the growth of eBook markets (1)

Domestic publishing market has resumed growing, driven by eBook sales growth

Domestic publishing market (2008)

¥2,059.5bn

US: 97.8% of 2008 level

Germany: 96.6% of 2008 level

Domestic publishing market shrank 42% from ¥2,650bn

in 1996 to ¥1,540bn in 2018

Domestic publishing market (2020)

¥1,616.8bn

eMagazines ¥11.0bn eBooks ¥40.1bn eComics ¥342.0bn

Paper magazines ¥557.6bn (1996: ¥1,093.1bn)

Paper books ¥666.1bn (1996: ¥1,563.3bn)

2008200 年 20102010年 20122012年 2014201 年 2016201 年 20182 年 202020 年

Source: All-Japan Magazine and Book Publishers and Editors Association (AJPEA)

Publishing market has stopped shrinking and started to recover in wake of eBook market growth

We aim to spur further market growth

by driving publishing industry DX

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Stimulate the growth of eBook markets (2)

We acquired US-based Firebrand Group* to pursue overseas expansion and publishing industry DX

*Two companies wholly acquired by San Diego-based US subsidiary Media Do International, Inc.

Firebrand Group

Quality Solutions, Inc.	NetGalley, LLC
Firebrand business	NetGalley business

• CEO Fran Toolan founded Quality Solutions, Inc., in 1987
• Quality Solutions and NetGalley are both located in Massachusetts
• The group has 68 employees (Quality Solutions: 45; NetGalley: 23)
• 2020 estimated sales and adjusted pretax profit were ¥1,270mn and ¥150mn, respectively (at ¥110/$1)

Objectives of acquisition

To gain access to Firebrand's US/European	To incorporate leading-edgeIP/know-how from the
publishing industry network as a stepping stone to	Western publishing industry, the global DX leader,
global expansion	into services in Japan/Asia

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Stimulate the growth of eBook markets (3)

Firebrand is US's top ranked publishing

ERP SaaS in by market share

Firebrand business

Comprises bibliographic metadata-centric publishing ERP, content distribution and eBook distribution services

• Top-rankedpublishing ERP SaaS by market share. Used by over 100 publishers, including 2 US majors (available in North America and Europe (UK, Germany, etc.))

• Annual churn rate: 0% (essential service for publishers)

	35% US	50% US
	mkt share	mkt share
Publishers	Integrated	partners
promotion, authors,
	management of data	Sends data customized
	on titles, sales	to individual trading
	trading partners,
	production, sales, etc.

Amazon

Barnes & Noble

Ingram and other

wholesalers

Libraries

Book review services

Apple, Kobo, etc.

Other trading partners

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Monitors market data and
reports to publishers	26

Stimulate the growth of eBook markets (4)

NetGalley is a marketing service that provides

digital access to prepublication galleys

NetGalley business

Readership cultivation tool that promotes book sales through the review of yet-to-be-published books by influencers

• Marketed to publishers as world's first service that provides prepublication galleys (including proofs and audiobooks) to professional readers (available in North America, Europe (UK, Germany, France, etc.) and Japan)

• Annual churn rate: 3%

Authors/publishers	Galleys

Customers include over

500 publishers,

including all 5 US majors

Requests to	40,000
reviews/month
read

Promotes demand

from bookstores

and libraries

800,000

Booksellers, libr and other i

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Stimulate the growth of eBook markets (5)

Ready to drive publishing industry DX with ERP SaaS system for managing revenue/royalties

Kowa Computer

Developer with vast

No. 1 eBook distributer experience, mainly in systems for paper book industry

Jointly developing inexpensive and efficient

browser-based publishing ERP SaaS

System overview

eBook sales	eBook royalty
management		management

Payment management/report

generation (paper books + eBooks)

System accesses paper-book royalty data from publishers' existing systems

July 2020

Sep. 2020

Mar. 2021

Nov. 2021

Done	Done
Specification	Implementation/	Trial run
setting,	configuration/
environment/co	testing
nfiguration
design

Process completed through testing phase; now in final trial-run phase

Scheduled to go live in November 2021, including further upgrades of essential features

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Stimulate the growth of eBook markets (6)

Strongly supporting publishing industry DX in collaboration with Firebrand and Tohan

Paper

Publishers books

eBooks

Publishing

ERP

Bibliographic DB

Bibliographic

data

• Development of ERP for SME publishers, using Firebrand's know-how

• eBook sales at bricks-and-mortar book retailers
• Demand-drivendistribution using NetGalley

Offline book retailers

Online book retailers

Libraries

(eLibraries)

eBook retailers

• Pro otion of eLibrary adoption, using Tohan's nationwide sales force (16 branches/sales offices) and network of leading book retailers with a track record of supplying libraries

-copy and digital

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¥300mn of cost* savings in FY2021 on top of ¥150mn in

FY2020 (*outsourcing and infrastructure expenses)

New Feature Development

Aiming to further upgrade UX by adding new features

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Stimulate the growth of eBook markets (7)

Reaping cost savings and developing new features after completing migration to cloud-baseddistributing system

Old

on-premises

system

MEDIA DO

Co., Ltd.

Digital Publishing

Initiatives Japan

Co., Ltd.

Cloud-based distributing system

Phase 1		Phase 2
Reduce costs through system integration		Upgrade UX by adding new features

Migration completed in June 2020 Old system to be completely phased out by March 2021

Merged

30

Stimulate the growth of eBook markets (8)

Now developing next-generation system to

drive DX among publishers

Next-generation publishing DX system

	Phase 3		Phase 4
	Configure system with the aim of internal DX		Integrate with publishing ERP
Progressively replace existing systems

Cloud-based

wholesaling system

Flexibly adapt to new business models and content that emerges in future

Further improve operating efficiency through automation

Deploy system as core database for eBook industry

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Stimulate the growth of eBook markets (9)

In FY2021, we plan to lay groundwork for Nagisa's growth by generating synergies

Cumulative 40mn DLs to date

App development		Promotional/sysop
capabilities		capabilities

Popular manga service, one of the biggest in Japan, offering free access to over 1,000 manga titles everyday (formerly named Manga Zero)

Site redesigned in March 2021

・UI/UX upgraded

・Launched comic book sales through linkage with Media Do's system

FY2021 initiatives

Added more features to app

・New promotional features (e.g., free-trial version) ・WEBTOON (vertical scrolling) compatibility

・Pre-ordering, manga publication calendar, etc.

Stepped up marketing

・Aggressive, optimal advertising to scale up

Major synergies from joining MD Group Expansion of content

・Greater access to content from major publishers (both serialized and book format)

Deployment of content

・Promotional campaigns involving major publishers' titles

Usership growth

Increased LTV

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Other businesses

Proactive investment for business expansion

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Imprint business (1)

New wholly owned subsidiary Nihonbungeisha's

forte is male-oriented digital manga

Manga content production

Founded in Jan 1959; 72 employees (including 34 editorial staff)

FY2018-20 operating performance (¥mn)

5,000

4,000

Net sales Operating profit

4,061 3,888

Net sales are in downtrend but profits are growing in wake of

500

structural reforms and migration

to digital (40% of sales)

3,520 400

Main magazine is Shukan Manga Goraku, a male-oriented weekly dating back to 1964

Owns vast content library, including hit eBooks Gift ± and Monkey Peak in addition to Minami no Teio, a long-running series spanning more than 1,400 installments

3,000

2,000

1,000

0

-1,000

300

190 200

100

• 0

-37

FY2018	FY2019	FY2020	-100
actual	actual	estimate
1	2	3

WEBTOON

Publishing management

Following a string of annual losses, Nihonbungeisha regained profitability in FY2019 by virtue of improved inventory management and a shift to demand-driven distribution

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Imprint business (2)

Laying foundation for imprint business by strengthening publishing functions

Imprint business's strengths

Publishing functions

1.	Marketing	IP/customer/market analyses, etc.
2.	System development	Inventory/production/sales management
3.	Back-office	HR/accounting/administrative/legal, etc.

	Imprint		Imprint		Imprint

1. We will achieve organizational efficiency through separation of publishing and editorial functions and realize a distinctive lineup (Publishing-on-demand can limit inventory risk)
2. We will strengthen marketing and content production by sharing marketing data and know-how

Demand-driven

content creation and

digital distribution solutions…

…that leverage our overwhelming

informational and volume-wise advantages

in eBook distribution

Imprint model maximizes value of SME publishers' IP

In publishing, an imprint is analogous to a brand name of record label. Amazon, for example, has 16 imprints (as of Apr. 2021), including Thomas ＆ Mercer (mystery), Montlake Romance, and AmazonEncore (re-publication of out-of-print titles).

publishing market

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¥1.2bn

Media/other businesses (1)

Aiming to build MyAnimeList into manga/anime

marketing platform with global reach

Media operations

Globally top-tier anime/manga

community site

270mn monthly page views

Users in over 230 countries/regions

FY2020

initiatives

iOS/Android app released at last

MyAnimeList has gained a channel to embed itself into daily lives (habits) of smartphone-using demographic and will accelerate acquisition of new/lite users

MAU: 18mn

Private-placement offering

MyAnimeList recently raised capital in the aim of expanding as an effective IP sales and marketing platform.

Media Do, Kodansha, Shueisha and Shogakukan purchased ¥600mn of the equity issued

Total raised:

Do major upgrade of community features, add more features to official app

FY2021 plans Plan and release content in collaboration with content owners, etc., most notably the new shareholders

Effective IP sales/marketing platform that captures the interest of and demand from overseas fans of Japanese anime/manga

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Media/other businesses (2)

Non-core businesses are growing briskly,

riding the society-wide DX trend

Media operations		Graphic production support

eComic graphic and comic production support service

Business book summary service

FY2020

initiatives

Expansion of services/features

Launch original content from luminaries, online book clubs, "flier book labo" learning community and add learning- focused social media functionality

B2B expansion	Growth initiatives
Strong interest in "flier" from	(1)	Capture on growing production demand (e.g., vertical scrolling
major life insurers and other		pages) in addition to existing coloring and graphic production
financial institutions, including		support operations
megabanks; cumulative corporate	(2)	Establish stably profitable business model
subscribers now exceed 200
companies in wake of growth in
large contracts

• Flier is set to expand further after raising ¥200mn from private placement offering to Mynavi Corporation, etc.

• Branch into production of new digital content, including vertical scrolling and motion manga

FY2021 plans • In 2020, Flier further strengthened its BtoB business,	• Relocate to larger office space and hire more
ending the year with over 750,000 subscribers. It aims to	employees to capture growing demand

have 1.2mn subscribers by 2022.	37
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(4) FY2021 initiatives

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FY2021 initiatives (1)

New MTP's unveiling postponed in response to recent drastic changes in environment

External changes

Structural

reforms

Recent

changes

	Growing need for publishing		Emergence of new
	industry to embrace society-		blockchain-enabled content
	wide DX trend		modality (NFTs)
	Completion of Media			Improved financial condition
			due to capital raise and cost
	Do/DPIJ PMI			savings from, e.g., system
				integration
	Capital/operational alliance		Increased impact from pirate
	with Tohan
		sites, intensification of
	(use of NFTs at book retailers nationwide)
		competition
	Nihonbungeisha acquisition

Existing MTP

needed updating

New MTP's launch

postponed

Timing of new MTP's release will be announced once determined

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FY2021 initiatives (2)

		Invent future
Priorities		eBook markets
Stimulate the
		growth of
		eBook markets
		Invest for business
		expansion

Launch Media Do NFT Marketplace and limited-edition digital tokens salable at Tohan-affiliated bookstores by year-end 2021

Release alpha version of GREET co-watching service, our first blockchain business, in March and beta version in November

Sequentially develop and release other blockchain products

Proceed with PMI of Firebrand Group, develop publishing ERP and help drive publishing industry DX based on alliance with Tohan

Realize cost savings by migrating to cloud-based distributing system and develop next-generation system to drive DX among SME publishers

Proceed with PMI of Nagisa, allocate advertising spend to ZeroComi manga app and grow service by beefing up content

Proceed with PMI of Nihonbungeisha, build imprint business

Invest in operational expansion of Flier, ARTRA ENTERTAINMENT, etc.

Good opportunity to invest in business expansion despite

intensification of competition and slowdown in sales growth due

to stronger headwinds from pirate sites

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	40

FY2021 initiatives (3)

Top-line growth driven by M&A and eBook market growth; downtick in profits due to investments in growth opportunities

Consolidated earnings

	FY2020 actual	FY2021 planned	Planned YoY increase
	¥83.5bn	*1	+¥16.5bn (+19.7		)
Net sales	¥100.0bn
		%
	¥2,660mn	*2	+¥340mn (+12.6		)
Operating profit	¥3,000mn
		%
	¥2,720mn	*3	+¥100mn (+3.7	)
Ordinary income	¥2,820mn
		%
Profit attributable to	¥1,510mn	¥1,600mn	+¥90mn (+5.3%)
owners of parent
EBITDA	¥3,420mn	¥4,000mn	+¥580mn (+16.8		)
		%

*1. Does not include revenue from NFT marketplace.

*2. Planned YoY increase before goodwill amortization is approx. ¥200mn.

*3. Includes investment income recognized as non-operating income in FY2020 and an equity-method investment loss in conjunction with MyAnimeList's deconsolidation in FY2021 (scheduled in May 2021).

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	41

FY2021 initiatives (4)

Expediting publishing industry DXand realization of DCAs in response to drastic external changes

Consolidated EBITDA

+¥1,710mn in total
	¥5,130mn
	Growth due to	SysDev			¥4,000
Realized cost	M&A
+¥220mn	investment			mn
savings	-¥350mn Nagisa
+¥300mn	investment	Blockchain	Investments in
¥3,420mn		-¥350mn investments	subsidiaries	Other
Gross profit			-¥210mn	-¥140mn	-¥80mn
growth		Investments in expansion opportunities
+¥1,190mn
			¥1,130mn

FY2020	FY2020E EBITDA assuming	FY2021
	target
	short-term profits prioritized

and no investments	42
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp

FY2021 initiatives (5)

Pursuing growth by adding both economic

and societal value

Medium-term

strategies

Publishing DX

Bring DCAs to

fruition

Create new

services

Priorities

Environment

• Reduce CO2 emissions

Corporate philosophy

• Fair use and distribution of written works
• Build and strengthen infrastructure that stakeholders can use with confidence
• Contribute to local communities and rebalancing of Japanese economy away from Tokyo

HR diversity & empowerment

• Help employees to grow in tandem with business

Societal

value

Resolution of societal issues

• Build sustainable publishing infrastructure
• Grow together with authors, business associates & users by building trust
• Foster culture and enrich society
• Revitalize regional economies
• Boost employee motivation
• Help realize a society open to diversity

Economic		Relevant
value		SDGs

Pursuit of

growth/earnings

• Gross eBook distribution
  volume

¥155bn

(FY2020)

• Other businesses' net sales

¥1,190mn

(FY2020)

• Operating margin

3.2%

(FY2020)

• Boost labor productivity
• Scale up operations

value Do's Media in growth Sustained

Strengthen governance

Strengthen governance through dialogues with stakeholders and compliance with the Japan's Corporate Governance Code with sights set on TSE prime market listing

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	43

FY2021 initiatives (6)

Strengthen governance by further

increasing transparency

FY2020

Introduction of executive officer system to expedite decision-making

FY2021

Establishment of nomination &

compensation advisory committee

• A nomination & compensation advisory committee will be newly established to advise the Board of Directors
• It will ensure management objectivity and rationality by making recommendations on director and executive officer appointments/dismissals and compensation proposals
• It will be majority-independent and chaired by an outside director

Promotion of diversity

• Ayako Kanamaru is slated to be appointed as a new independent outside director*
• She possesses broad knowledge and experience in overseas corporate law and corporate governance
• Board will be one-third independent (4 executive directors, 2 outside directors)
• • Contingent on her appointment being approved at 22nd General Meeting of Shareholders

We plan to reorient Board of Directors' role from management
(direct involvement in executive decision-making)to monitoring (oversight of
management's execution of business)	44
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp

Appendix

3. Reference data

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	45

FY2020 Full-Year Results (P/L)

						FY2019								FY2020
	(Millions of yen)		1Q		2Q		3Q			4Q		1Q		2Q		3Q		4Q
Net sales		15,454		16,427		16,085			17,892		20,292		21,441		20,272		21,533
	eBook distribution	15,127	97.9%	16,080	97.9%	15,687	97.5%	17,633	98.6%	20,064	98.9%	21,141	98.6%	19,957	98.4%	21,186	98.4%
	business
	Other businesses	*1	326	2.1%	346	2.1%	397	2.5%	*4	259	1.4%	228	1.1%	299	1.4%	314	1.6%	347	1.6%
Cost of sales, SG&A	15,019	97.2%	15,933	97.0%	15,648	97.3%	17,404	97.3%	19,560	96.4%	20,643	96.3%	19,650	96.9%	21,020	97.6%
expenses
	Royalties/other	13,292	86.0%	14,131	86.0%	13,867	86.2%	15,579	87.1%	17,862	88.0%	18,878	88.0%	17,750	87.6%	19,012	88.3%
	cost of sales
	Commissions		49	0.3%	53	0.3%	47	0.3%		57	0.3%	54	0.3%	57	0.3%	53	0.3%	51	0.2%
	Advertising		130	0.8%	144	0.9%	162	1.0%		191	1.1%	214	1.1%	200	0.9%	237	1.2%	226	1.0%
	expenses
	Personnel expenses	*1	895	5.8%	945	5.8%	852	5.3%	*4	768	4.3%	750	3.7%	784	3.7%	799	3.9%	852	4.0%
	Depreciation		201	1.3%	206	1.3%	201	1.3%		198	1.1%	182	0.9%	181	0.8%	184	0.9%	210	1.0%
	/amortization
	Other		449	2.9%	452	2.8%	516	3.2%		610	3.4%	494	2.4%	541	2.5%	624	3.1%	666	3.1%
Operating profit		434	2.8%	493	3.0%	437	2.7%		487	2.7%	732	3.6%	797	3.7%	621	3.1%	512	2.4%
Ordinary income		456	3.0%	*2 395	2.4%	391	2.4%		518	2.9%	734	3.6%	849	4.0%	615	3.0%	521	2.4%
Profit (loss)						*3 404
attributable to owners		265	1.7%	218	1.3%	2.5%		(3)	0.0%	450	2.2%	459	2.1%	354	1.8%	254	1.2%
of parent
EBITDA		636	4.1%	699	4.3%	638	4.0%		686	3.8%	914	4.5%	979	4.6%	806	4.0%	723	3.4%

*1. A factor in the increase in "Other" and "Personnel expenses" was the consolidation from March 2019 of Tokushima Data Service Co., Ltd. (difference compared to FY2018 4Q of +¥200 million and +¥160 million, respectively.)
*2. A ¥90 million provision to allowance for doubtful accounts was booked as a non-operating expense against receivables owed by investee Creatubbles Pte. Ltd.
*3. Factors in ¥290 million one-time gain on sale of Amazia equity stake.
*4. QoQ decrease is attributable to the end-Oct 2019 divestment of Tokushima Data Service (see Note 1). Although the divestment increased royalties /other cost of sales as a percentage of total net sales, the eBook distribution	46
business's royalties/other cost of sales were flat QoQ as a percentage of its net sales.	- https://mediado.jp
Copyright © MEDIA DO Co., Ltd. All Rights Reserved.

FY2020 Full-Year Results (B/S)

	FY2020	FY2020	QoQ change	Main factor behind change
(Millions of yen)
3Q	4Q	(in yen)
Current assets	29,197	33,902	4,705
Cash and deposits	10,249	12,703	2,454
Accounts receivable	17,952	19,921	1,969	Increased in tandem with net sales growth
Non-current assets	9,370	9,285	-85
Property, plant and equipment	297	303	5
Software	466	556	89
Goodwill	5,065	5,713	648	Increased due to M&A
Investment securities	3,537	2,761	-776	Decreased due to pre-consolidation reduction in
ownership interest in consolidated subsidiary
Total assets	38,568	43,187	4,619
Current liabilities	24,224	25,425	1,200
Accounts payable	21,112	22,507	1,395	Increased in tandem with net sales growth
Current portion of long-term borrowings	1,187	1,181	-5
Fixed liabilities	5,811	5,593	-218
Long-term borrowings	5,698	5,471	-226	Decreased due to debt repayment
Total liabilities	30,035	31,018	982
Shareholders' equity	8,229	11,903	3,673
Capital	2,803	4,415	1,611	Increased due to exercise of share acquisition rights
Capital surplus	3,682	5,489	1,807	Increased due to exercise of share acquisition rights
Retained earnings	1,745	2,000	254
Total accumulated other comprehensive income	278	201	-77
Share option	25	11	-13
Non-controlling interest	(1)	53	54
Total net assets	8,532	12,169	3,637
Total liabilities and net assets	38,568	43,187	4,619

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	47

Balance Sheet Data

Financial metrics are improving

Shareholders' equity ratio (SER)

Key B/S accounts

(Millions of yen)
45,000	31.3%					43,188
40,000				34,063	28.0%
35,000
			30,942
30,000
		26,699
25,000
					17.0%
20,000			15.3%
		14.1%
15,000	8,683						12,104
10,000
		4,096	4,368	5,791
5,000	2,716
0
Feb. 2017	Feb. 2018	Feb. 2019	Feb. 2020	Feb. 2021
			Total assets		Shareholders' equity	SER

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

(Millions of yen)

12,169

11,387

10,063

						8,241
	6,588							6,654
	5,807				5,838
				5,416	5,713
	4,218	4,461
2,767
1,460
0
Feb. 2017		Feb. 2018		Feb. 2019		Feb. 2020	Feb. 2021
			Goodwill		Interest-bearing debt			Net assets

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	48

Mission/vision

Mission: Unleashing a Virtuous Cycle

of Literary Creation

Vision: More Content for More People!

Specifically,

Leveraging its Position , Media Do will popularize eBooks and expand the publishing market with its people, IT and strategies

49

Media Do's greatest strength (1)

Media Do's greatest strength

Position

Core distribution functions

Uniquely positioned as distributor of 2,200 eBook

publishers' titles to 150 book retailers that

account for nearly all of Japan's eBook retailers,

including the major ones

Global presence

The only Asian company with an executive serving as

co-chair of W3C's* Publishing Business Group

First Japanese W3C evangelist

• World Wide Web Consortium: an organization that promotes global standardization of Internet technology, including eBooks. Media Do International CEO Daihei Shiohama was named co-chair of its Publishing Business Group in February 2019, together with executives from two of the biggest US/European publishers, including Penguin Random House. Shiohama became the W3C's first Japanese evangelist in January 2021.

Dominant market share

Globally ranked second only to Amazon by

eBook distribution volume with gross

transaction value > ¥155bn*

*FY2020

Industry support

Over 14%1 owned by publishers, mainly Japan's

four biggest2

1. Based on issued share count at February 28, 2021.

2. Kadokawa, Kodansha, Shogakukan and Shueisha (listed in alphabetic order).

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	50

Media Do's greatest strength (2)

Technology

Entirely in-house development

100-strong engineering staff develops core systems entirely in-house, from a high-traffic eBook distribution platform to systems that leverage blockchain and other leading-edge technologies.

Wholesaler turned SaaS

provider

Media Do has pursued a user-friendly, cost- efficient SaaS model since entering the eBook distribution business.

It is helping to further advance the publishing industry by streamlining distribution through system integration and migration to new eBook distributing system.

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	51

Overview of eBook distribution business (1)

35% of eBooks are distributed via Media Do in Japan

Authors/copyright holders		Publishers

Gross transaction value

of eBooks distributed by

Media Do:	eBook	①
¥120bn		Users
(FY2019)	retailers		Market size:
(FY2020: ¥155bn)
		②	¥375.0bn*

③Publishers' B2C eBook retailers

Source: Impress Research Institute's eBook Marketing Report 2020 on Japanese market

*Actual FY2019 value

52

Overview of eBook distribution business (2)

Media Do is the biggest eBook

distributer in Japan

Authors/artists		Publishers		retailers eBook		Readers

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	53

Overview of eBook distribution business (3)

Facilitating eBook distribution with four services

(1) Brokering of	(2) Pro rata distribution
contracts/transactions	of revenues to
with publishers	publishers and authors
Expansion of eBook retailers' content lineups	Aggregation of eBook retailers' monthly sales data

(3) Operation of eBook	(4) Execution of
distribution system	promotional campaigns
Distribution of content to eBook retailers on	Offering of discounts, freebies and other promotions in
behalf of publishers	coordination with publishers and eBook retailers

54

Overview of eBook distribution business (4)

Media Do's track record in Japan

Trusted by publishers

Over 2,200 publisher accounts, including 1,530 non-manga publishers, all major publishers*1 and over 99% of eBook publishers*2

Trusted by	Supplier to over 150 book retailers,
book	including all of top 20 by usage rate*3
retailers

*1. Defined as publishers that belong to the Japan Book Publishers Association (402 members as of October 31, 2020), excluding non print (e.g., audiobook) publishers.

*2. Per a Media Do survey. Excludes sub scale publishers, publishers without regular publications, etc.

*3. Top 20 eBook retailers (ex book retailers run directly by publishers) ranked by popularity based on number of survey respondents who reported purchasing an eBook from the retailers within the previous six months per Impress Research Institute's eBook Marketing Report 2020.

55

Overview of eBook distribution business (5)

Core focus is eBook distribution business

¥83.5bn

eBook distribution business

MEDIA DO Co., Ltd.			Digital Publishing Initiatives Japan Co., Ltd.
MEDIA DO TEC TOKUSHIMA Co., Ltd.			Nagisa, Inc.

Other businesses

Media Do International, Inc.

ARTRA ENTERTAINMENT Inc.

¥82.3bn

(98.6%)

Hub of Media Do Group's international operations, located in San Diego, U.S.

J-Comic Terrace Corporation

Distributes eBooks, including through its "Manga

Library Z" site, a free digital comic service

MangaNews Inc.

Distributes eBooks, including through its "Tokyo Manga Reviewers" site, a free digital comic service

Provides graphic production support services (e.g., eManga coloring) for manga authors

Flier Inc.

Operates "flier," a book summary service

MyAnimeList, Co., Ltd.

Operates "MyAnimeList," one of the world's

largest anime/manga community sites

¥1.2bn

(1.4%)

FY2020 net sales

JIVE Ltd.		Quality Solutions, Inc.
		Provides publishing workflow management and
Operates next-generation imprint publishing
business; owns female-oriented manga imprint		bibliographic information management services
NetGalley, LLC

Provides NetGalley online marketing tool for
publishing industry	56

Media Do's operating environment (1)

eBook market growth has been accelerating

	+18.5%	566.9	¥78.8bn
		Stay-at-home consumption	upward
Proactive, agile investment is essential		growth driven by pandemic	536.8	revision of
		512.4	FY23 market
to seize growth opportunities		481.2	forecast
	eBook
	444.2
				Forecast in
				Marketing
+22.1%	375.0		Report 2020
Growth spurt due to		Forecast in
shutdown of major overseas				eBook
pirate sites in April 2018	311.2		Marketing
		Report 2019
	255.6		Forecast in
		eBook
227.8		Marketing

	182.6	Report 2018
(Billions of yen)
141.1

101.3

65.1 76.8

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

(FY)

Source: Impress Research Institute's eBook Marketing Report 2020 on Japanese market

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	57

Media Do's operating environment (2)

Comics market grew 23% YoY; digitalization

of non-graphic books still has a lot of room to run

Japan's publishing market by segment (2020)

Digital share of sales

62.2% Up 1.3pt YoY

eBook ¥342.0bn

Paper

book ¥207.8bn

5.8% Up 0.7pt YoY

¥40.1bn

eBooks account for 30-40% of US and Chinese publishing markets

¥645.9bn

1.9%

¥11.0bn

¥370.0bn

Comics	Non-graphic books (e.g., novels, textbooks)
¥549.8bn	¥686.0bn

Source: All-Japan Magazine and Book Publishers and Editors Association (AJPEA)

Note: AJPEA Statistics classify 90% of comic books in the "magazine" category. In the diagram above, such comic books classified as magazines are counted as "comics." Additionally, comic sales include only comic books (both hard-copy and digital) while comic magazines (both hard-copy and digital) are included in the "magazines" category.

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp

Magazines

¥381.0bn

58

Media Do's operating environment (2)

Digital shift is driving manga market growth

Comic book market (excludes magazines)

(Billions of yen)

6,000

~+7% CAGR for hard-copy/digital combined

5,000

4,000		CAGR
62%	+23.9%

eComics market is now larger than paper comic market, largely by virtue of digital channel's anytime, anywhere accessibility

Paper comics' sales decline should tend to

taper off by virtue of catalog effect of

3,000

2,000

1,000

0

-0.2%

38% CAGR

consumers' exposure to digital

	A pickup in sales of not only digital but also hard-copy
Catalog effect
	content in response to consumption of digital content

Growth in eBook distribution

is revitalizing entire

2015	2016	2017	2018	2019	2020
			Paper		Digital

publishing market

Source: All-Japan Publishers and Editors Association's annual publishing statistics

Note: Paper comics market data are for comic books only (i.e., magazines are excluded).

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	59

Anti-piracy measures (1)

Amended Copyright Act, effective Jan. 1,

has criminalized copyright violations

History of illicit sites

Industry/government responses

2004 Unauthorized dissemination of content through P2P services 2007 Unauthorized content on video-sharing sites becomes an issue 2011 New modes of infringement (e.g., leech sites) emerge

Publishers incur major losses due to pirate sites

Haruka Yume no Ato	Ringleader sentenced to 28-42 months in
2015-Oct. 2017	prison and fined ¥160mn
FreeBooks
Jan.-May 2017

Content Overseas Distribution Association (CODA)

established (2002)

(Music/images) Illegal downloads criminalized (2012)

Publishing rights updated to accommodate eBooks (2013)

Authorities start to address leech sites (2016)

Stop Book Piracy! Campaign, promotion of ABJ* Mark's use (2018)

(later founded anti-piracy NPO ABJ, appointed COO Niina as its representative

director)

Manga-Mura	Members of management group arrested
	Blocking of pirate sites discussed with ISPs and
May 2017-Apr. 2018	on copyright infringement charges
			telecom industry (2019)
Hoshi no Romi		2020
May-Sep. 2019
	Leech sites illegalized (Oct. 2020)
Sites in Vietnam	Traffic has grown since July as consumers
From May 2020	spend more time at home amid pandemic	2021
eBooks added to prohibition of illicit DLs (Jan. 2021)

(1) Swiftly respond to piracy (2) Promote adaptation of copyrighted works' use to societal change (3) Protect copyrights

*Authorized Books of Japan. The ABJ Mark is a trademark that indicates the download site is licensed to distribute content by the content's copyright holders.

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	60

Anti-piracy measures (2)

ESG priorities: Combat piracy, move publishing industry & culture forward

Collaborations with publishing industry & telecom carriers

	Authorized Books of			Piracy site
	Japan (ABJ)			information sharing			Collaborators
	(Established in April 2020)			scheme task force
Representative Director:			Safer Internet Association				Filtering services
					Security firms
Media Do Vice-President and COO Shin
Niina
・Publishing PR Center	Lists		• Develops and	Lists		• Use lists as input in
・Digital Comic Association			operates pirate site			their services (user
・Electronic Book Publishers Association of
	Japan			list sharing scheme			protection)
•	Collects, assesses and manages
•	pirate site information			Coordinated compilation/sharing of lists
Grants/certifies ABJ mark

• Conducts antipiracy education

Promoting broad anti-piracy measures/education through collaboration among

publishing industry, telecoms and government authorities

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	61

Growth in net sales

83,540

Company history

1994: CEO Yasushi Fujita starts first business while still in university

1996: Fuji Techno Ltd. founded in Nagoya

1999: Media Do Co., Ltd., founded in Nagoya (it later merged with Fuji Techno)

2006: eBook business launched

2013: IPOed on TSE Mothers market

2014: Head office relocated from Nagoya to Tokyo

2016: Stock exchange listing moved to TSE 1st Section

2017: Acquired Digital Publishing Initiatives Japan Co., Ltd., as wholly owned subsidiary Reorganized as holding company, changed company name to MEDIA DO HOLDINGS Co., Ltd.,

and established the new business subsidiary Media Do Co., Ltd.37,213

2019: Merger of Digital Publishing Initiatives Japan Co., Ltd., with Media Do Co., Ltd. (Name following merger Media Do Co., Ltd.)

2020: Media Do Co., Ltd., merged into MEDIA DO HOLDINGS Co., Ltd. (Name following merger MEDIA DO Co., Ltd.)

																																		15,532
																																11,242
(Millions of yen)		1,415	617	2,141															2,659	3,000	3,602	4,086	5,544	8,074
197	139	812	1,880	977	319	810		1,210	1,831	1,962
(FY)	411	1,676
		1999	2000	2001	2002	2003	2004	2005		2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017

4Q

21,533

656 ,86060

4Q

17,892

50,568 3Q

20,272

3Q

16,085

2Q

21,441

2Q

16,427

1Q

20,292

1Q

15,454

2018 2019 2020

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	62

Share price performance and trading volume since IPO

(Yen)		Share price (lhs)		Volume traded (rhs)		(shares in
			1000s)
9,000										9,000
							Oct. 21, 2020 Stock hits
8,000								post-IPO high of ¥9,090		8,000
							Apr. 9, 2021, closing
7,000								price: ¥7,030		7,000
6,000										6,000
5,000										5,000
		IPO price: ¥3,300
4,000								4,000
					Feb 28, 2017: DPIJ
3,000									3,000
					acquisition
2,000						announced				2,000
1,000										1,000
			Feb 23, 2016: First day of
			trading on TSE 1st Section
0										0
					Nov. 2015
Nov. 2013				Nov. 2017	Nov. 2019

Note: Share price adjusted to reflect 2-for-1 stock splits on March 1, 2014, and December 1, 2014.

Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp	63

Media Do's market capitalization since IPO

¥129.0bn based on Oct. 20, 2020,

closing price

(Billions of yen)

1201..2E+110

100.1E+110

80.08E+10

60.06E+10

40.04E+10

20.02E+10

¥108.0bn based on Apr. 9, 2021,

closing price

0
	2014	2015	2016			2017	2018	2019	2020	2021
2013
13年11月21日	2014年11月21日	2015年11月21日	2016年11月21日	2017年11月21日	2018年11月21日	2019年11月21日	20年11月21日

64

Company Outline

Trade name	MEDIA DO Co., Ltd.
Established	April 1999
Capital	¥4,415 million (as of February 28, 2021)
Stock listing	Tokyo Stock Exchange, First Section
Securities code	3678

Board Members	President and CEO: Yasushi Fujita
	Director: Shin Niina
	Director: Yoshiyuki Suzuki
	Director: Atsushi Mizoguchi
	Outside Director: Keiichi Enoki
	Outside Director: Ayako Kanamaru
	Standing Audit & Supervisory Board Member:
	Kazuyoshi Ohwada
	Outside Audit & Supervisory Board Member:
	Toshiaki Morifuji
	Outside Audit & Supervisory Board Member:
	Tsuyoshi Shiina

Executive Officer: Kayoko Hanamura
Executive Officer: Susumu Tsukamoto
Executive Officer: Junichiro Izumi
Executive Officer: Ryo Yamada		Digital Publishing Initiatives
Executive Officer: Yoichi Chihara	JIVE Ltd.
Executive Officer: Hiroshi Kanda	Japan Co., Ltd.
Executive Officer: Hajime Suzumura

Notes: 1. Board Director appointments are subject to shareholder approval at annual general meeting of shareholders scheduled on May 27, 2021.

2. Operating officer appointments take effect from June 1, 2021.

	Head Office	5F PALACESIDE Bldg. 1-1-1 Hitotsubashi Chiyoda-ku Tokyo, Japan
	Tokushima Kito Office	5-23 Iwatsushi, Kitowamuda, Naka-cho,Naka-gun, Tokushima, Japan
	Subsidiaries	(Domestic) Media Do Tech Tokushima Co., Ltd.; ARTRA ENTERTAINMENT Inc.; J-Comic Terrace Corporation; Digital Publishing Initiatives
		Japan Co., Ltd.; Flier Inc.; MangaNews Inc.; MyAnimeList, LLC; JIVE Ltd.; Nagisa, Inc.; Nihonbungeisha Co., Ltd.
		(Overseas) Media Do International,.Inc.; Quality Solutions, Inc. (Firebrand Technologies); NetGalley, LLC
	Affiliates	LINE Book Distribution Inc.; A.I. Squared, Inc.; Tec Information Corp.	65
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Management Team

Kayoko Hanamura

Chief Ebook Distribution Officer, Executive Officer

Began career at Forside in 2000. Worked in content business throughout tenure at Forside, including as general manager from 2003, executive officer from 2007 and director from 2010. Since joining Media Do in 2015, has been involved in all facets of eBook distribution business, including as general manager of Licensing Business Department, general manager of eBook Distribution Division and executive officer. Appointed CEDO mainly in charge of wholesaling operations within core eBook distribution business in June 2020.

Role as CEDO is to tap into her extensive experience in content businesses to build operational model encompassing entire eBook distribution business from planning through IT operations management while identifying unmet needs of publishers and book retailers.

Susumu Tsukamoto

Chief Publication Solutions Officer, Executive Officer

Began career in 1980 at TOHAN. Worked 10 years in magazine publishing and 8 years overseas, including 4.5 years as president of TOHAN TAIWAN. Joined KADOKAWA SHOTEN (now KADOKAWA CORPORATION) in 1998. Established KADOKAWA TAIWAN and was its president for 4.5 years. Subsequently involved in setting up local operations in Hong Kong, Guangzhou, Thailand, Malaysia and North America. Executive roles at KADOKAWA included director/general manager of KADOKAWA's Overseas Business Division from 2012, managing executive officer from 2017 and advisor from 2019. Cofounded and appointed director of Japan Manga Alliance in 2015. Joined Media Do in June 2020 as CPSO/executive officer mainly in charge of Overseas Business Department and PUBRID Department.

Yasushi Fujita

Presindet and CEO

Launched first business in 1994 while in university. Founded Fuji Techno in 1996 and Media Do in 1999 (the former was merged into the latter in Nov. 2001). Involved in various businesses before launching eBook distribution business in 2006. Listed Media Do on TSE Mothers Market in 2013 and moved its listing to TSE 1st Section in 2016. As CEO, is in charge of management strategy, particularly creation of new drivers of shareholder value.

Established Tokushima Innovation Base Association in 2020 in aim of supporting entrepreneurs and serves as its representative director. Actively involved in local economic revitalization since 2013 in hometown of Kito-mura (now Naka-cho), Tokushima Prefecture, while also contributing to society as an entrepreneur in roles such as president of Entrepreneurs' Organization Tokyo.

Shin Niina

Director, Vice-President and COO

Began career at Chuokoronsha (now Chuokoron-Shinsha) in 1980. Hired by KADOKAWA SHOTEN (now KADOKAWA CORPORATION) in 1996. Promoted to general manager of its book business in 2003. Appointed managing director of KADOKAWA SHOTEN in 2007, representative director of KADOKAWA EDITORIAL in 2008, director of BOOK WALKER in 2012 and executive director of Kadokawa Culture Promotion Foundation in 2013. Appointed president/representative director of DPIJ (renamed Media Do in March 2019) in 2014. Has served as vice-president/COO/director of Media Do since 2018. Appointed representative director of anti- piracy organization Authorized Books of Japan in 2020.

Heads core eBook distribution business and publishing support business as COO, capitalizing on his many years of literary editorial experience and quarter century of experience in digital publishing. Acts as Media Do's point man in dealings with publishing industry.

As CPSO, is responsible for IPO creation and proactive cultivation of overseas markets through, e.g., capital/operational alliances, capitalizing on his wealth of experience in publishing distribution and overseas businesses.

Junichiro Izumi

CTO, Executive Officer

Began career in 2007 at Works Applications in ERP package software development. Hired by Recruit Technologies in 2015 to work on Rikunabi development project. Returned to Works Applications in 2016 to help launch SaaS ERP system. Joined Media Do in 2018. Involved in introduction of cloud and development of new distribution system as general manager of Technology Division and New Services Development Department. Appointed CTO/executive officer in charge of developing new products and upgrading existing products to achieve strategic objectives in June 2020.

As CTO, is responsible for leveraging technologies to develop and deploy IT systems that contribute to entire publishing industry, not only eBooks.

Ryo Yamada

CFO, Executive Officer

Began career in 1998 at NEC, where his assignments included corporate planning and business development. Hired by Rakuten in 2010. From 2017, headed Rakuten Group's M&A program as department manager of Corporate Development Department after working in business development. Since joining Media Do in 2018, has served as general manager of Corporate Planning Division and Management Administration Department. Appointed executive officer/general manager of Finance and Accounting Department in 2019 and CFO/executive officer in charge of financial strategy and capital raising in June 2020.

As CFO, is responsible for financing, M&A and PMI to support Media Do Group's multifaceted and discontinuous growth, capitalizing on his long experience in business development.

Yoshiyuki Suzuki

Director and CAO

Began career in 1986 at Takahashi Tax Office. Joined Media Do in 2007 following stints at Red Hot Company, Asahi Intecc and World Bridal. Appointed operating officer/general manager of Management Administration Department in 2008, general manager of Administration Division in 2015 and board director in 2016. Appointed CAO in charge of administration, finance and accounting in June 2020.

Has been in charge of all administrative operations since joining Media Do and, as CAO, will continue to oversee accounting.

Atsushi Mizoguchi

Director and CBDO

Began career at NTT DOCOMO in 2000, working in its content business. Involved in launching "Chaku-uta" (musical ringtones) for i-mode handsets. Joined Media Do in 2008. Appointed executive officer/general manager of Sales Division in 2010, director/general manager of Business Development Division in 2016, group COO in 2017, representative director of subsidiary MyAnimeList in 2019 and CBDO in charge of new businesses and alliances in June 2020.

As CBDO, leads development of new domestic and overseas markets and expansion of content offerings, capitalizing on his IT and mobile telecom expertise and broad experience in core eBook distribution business, eLibrary business and new businesses.

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Yoichi Chihara

CHRO, Executive Officer

Began career in 1981 at NEC, where his roles included general manager of HR Department at NEC (China) from 1998, general manager of HR and General Affairs Department at NEC LCD Technologies (now Tianma Japan) from 2003, general manager of NEC's HR Department from 2012 and managing director of NEC's corporate pension fund from 2014. Joined Media Do in 2019 as general manager of its HR Department. Appointed CHRO/executive officer in charge of HR, general affairs, legal affairs and corporate governance in June 2020.

As CHRO, is responsible for boosting both employee satisfaction and workforce productivity while building an organization compatible with diverse values and work styles.

Hiroshi Kanda

CSO, Executive Officer

Began career in 2008 in UBS Securities Japan's Investment Banking Division, where his roles included advising clients on M&A and capital raising. Hired by Frontier Management in 2009 to formulate and help execute business plans for B2C company turnarounds/management support. In 2013, cofounded and appointed CFO/director of Flier, which became part of the Media Do Group in 2016. Joined Media Do in 2018. Appointed general manager of Corporate Planning Division in 2019 and CSO/executive officer in charge of management strategy formulation and IR in June 2020.

As CSO, is responsible for formulating corporate strategies and reconciling various stakeholders' interests, capitalizing on his extensive financial knowledge, consulting skills and entrepreneurial experience. Has authored multiple books.

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Forward-looking statement and unaudited information disclaimers

Information presented herein includes forward-looking statements. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks, all of which entail uncertainties that could lead to outcomes that substantively differ from the forward-looking statements' content.

Such risks and uncertainties include general industry and market conditions and general domestic and international economic conditions, including interest rate and exchange rate movements. Media Do assumes no responsibility to update or revise forward-looking statements contained herein, even if new information becomes available or unanticipated events occur.

Financial information that was not independently audited is also contained herein. Media Do does not warrant the accuracy of any such unaudited information. Readers are accordingly advised against making investment or other decisions in sole reliance on information contained herein.

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