(i) Creation, development and acquisition of new IP Of the funds to be procured through the Third-Party Allotment, 20 billion yen will be allocated to creating, developing, and acquiring new IP. In addition to planning and development of large-scale animated series and films, live-action films, drama series, and video games for the global market, and discovery of new creators through expansion of user-generated content (UGC) platforms, the Company also envisages acquiring the content holders including publishers, anime production companies, and game companies in Japan and overseas. At any rate, the Company may pursue multiple deals at the same time, allocating capital of anywhere from under 100 million yen to over 5 billion yen to each transaction, while also anticipating the possibility of engaging in collaborations with Sony Group. The Company believes it is necessary to raise the capital to provide strong financial backing to the IP creation capabilities of the Company which stem from its track record of creating an enriched and unique IPs comprising a diversified portfolio of books, films, anime, games and UGC platforms, and to ensure that it does not miss out on potential investment opportunities. Accordingly, the Company has concluded that, between now and the end of March 2030, it will need to spend capital of 20 billion yen for the creation, development and acquisition of new IP. The Company will disclose more information regarding the specific use of capital once the details are finalized.
