SUSTAINABILITY FOR THE MEDIA DO GROUPCEO MESSAGE

Becoming a company that remains “indispensable” for many years to come through a combination of corporate growth and contributions that enhance social sustainability

The main business of the MEDIA DO Group is eBook distribution. As experts who support the distribution of digital content, such as eBooks, we aim to contribute to cultural development by reliably and quickly performing our work as an intermediary between publishers and eBook retailers, our business partners.

Our mission is “Unleashing a virtuous cycle of literary creation.” We have always seen our raison d’être as continuing to play a role in sustaining a thriving societal cycle where written works—the convergence of wisdom and culture—are produced and reach the hands of many people.

To remain a company that continues playing this role, we are advancing sustainability initiatives focused on both growth as an essential company supporting the content business, and contributions to enhancing the sustainability of society as a whole, not just the content industry.

Looking at future population estimates for Japan, government surveys show that in addition to the total population, the working-age population (15 to 64 years old) is expected to decline from 73.95 million in 2023 to 55.4 million in 2050, or about 75% of its 2023 level, and continue to decline thereafter. There are concerns that the Group's future role in the publishing industry will shrink due to labor shortages and the expected contraction of the content market in Japan.

Based on this understanding, our Sustainability Committee has taken the lead in identifying ten material issues that need to be addressed to achieve sustainable growth for both society as a whole and the Group. In addition to the "Development of a literary creation cycle and maximization of value thereof," which contributes to the content industry, as well as themes for work on the establishment of systems required for listed companies, such as "Strengthening of information security" and "Enhancement of corporate governance," "Empowerment of communities" was identified as a way to revitalize local communities, which are the foundation for people who enjoy content, and to realize a sustainable society.

Looking at the relationship between urban and rural areas, the food self-sufficiency rate is low in urban areas and high in rural areas, and there is an aspect of food consumed in urban areas that depends on production in rural areas. On the other hand, there is also an aspect of the consumption cycle in which things primarily created in urban areas—such as various forms of entertainment, fads, and content such as books—also reach rural areas. Urban and rural areas support each other, and we want to build a future where this balanced relationship is not lost.

According to a survey by the All-Japan Magazine and Book Publishers and Editors Association, the number of bookstores nationwide was 10,918 in 2023, representing a decrease of about 5,000 stores over the past 10 years. Furthermore, according to a survey by the Japan Publishing Industry Foundation for Culture, as of the end of August 2024, 27.9% of local governments had no bookstores, and about half of all local governments had one bookstore or fewer. However, bookstores are a vital source of culture for local communities, and we believe that their continued existence is an important factor in halting the decline of local populations. For the publishing industry, bookstores are an important presence that creates serendipitous encounters with books and content consumption. In other words, the publishing industry and regional development are inextricably linked.

There are few companies in the publishing industry that are leaders in regional development. Our goal is for the Group's activities to have a wide-reaching impact on the publishing industry and society in the future, providing opportunities for many people to become more involved in social contributions, including regional development.

One of the Group's initiatives worth mentioning in terms of the "Empowerment of communities" is the Tokushima Gambarous men's professional basketball team, which joined the B3 League for the first time in 2023. We invited around 200 people from the publishing industry to one of their games, and also set up an opportunity for them to learn about the regional development initiatives being undertaken by the Group.

Sports are a form of "synchronous content" that allows athletes and spectators to share the same emotions at the same time in the same place, and it is a form of entertainment that has a different appeal than "asynchronous content," such as manga. The amount of heat the team brings to the region where it is based and the potential for economic ripple effects are immeasurable.

The professional sports industry is experiencing significant market expansion worldwide, and investment in funds is becoming more active. Even in Japan, a smaller market compared to Europe and the U.S., various initiatives in each sport are beginning to move forward, such as league reforms and the lifting of listing bans, signaling signs of growth.

In addition, the Group is involved in supporting local entrepreneurs through the "Tokushima Innovation Base Association," and we are promoting the activities of "xIB JAPAN," which is spreading the mechanisms of innovation bases (IB) nationwide and is currently expanding to 15 prefectures, including Tokushima.

Regional development is an effort to solve the essential issues of Japanese society, and it cannot be achieved overnight. It is crucial to unravel the complex issues involved and to do so over a long period of time. Companies also need to address these issues over the long term.

As the company president, I am also one of the individuals who have worked on regional development. A company's involvement in regional development also has the potential to act as a catalyst for shaping new business in the future. Especially for companies that have only recently been established, I have strongly felt from my experience that it can lead to branding that communicates the company's stance and, in the future, it has the potential to provide the impetus to move things forward.

We aim to make the regional development in which the Group is involved a success as an initiative that contributes to the revitalization of the local economy, an increase in the working-age population, and the future expansion of the content market. By gaining more support for our regional development activities in the future and spreading them throughout the country, including the publishing industry, we hope to achieve these goals.

All of this is an effort to ensure that the Group continues to play its role for a long time to come in maintaining a cycle that allows as many people as possible to enjoy as much content as possible. The pursuit of a future of sustained growth in content consumption is also directly linked to the growth of the Group's business. We will continue to strive to be an indispensable company that contributes to the industry by working hand in hand with a wide range of stakeholders, and we ask for your continued understanding and support.

October 2024
MEDIA DO Co., Ltd.
President and CEO