ANYCOLOR Hosts 6th Annual General Shareholders Meeting

NIJISANJI parent ANYCOLOR, Inc. has presented its Business Report and Financial Statement for the 6th Fiscal Year (May 1, 20222 to April 30, 2023) during its Annual General Meeting of Shareholders Friday July 28 at Tokyo Midtown Hall & Conference.

Key Points

A copy of the announcement has been published on ANYCOLOR's Investor Relations website, which discussed several key points:

• Shareholders approved the proposals for the company's transition to a company with an Audit and Supervisory Committee from its previous setup which has a Board of Corporate Auditors.
• They also approved a provision wherein dividends of surplus (which are currently decided solely by the General Shareholders' Meeting) may also be decided by the Board of Directors.
• The company has elected three directors, four of which are outside directors (not employed by the company)—three of which are elected as members of the Audit and Supervisory Committee. All directors have assumed office.
• Following the General Shareholders' Meeting, Riku Tazumi was elected as Representative Director; and director Shunsaku Maekawa was elected Full-Time member of the Audit and Supervisory Committee.

NewsDrop understands that this General Shareholders' Meeting is narrated in detail by guests who are present in the event on the X (Twitter) platform. One participant shared a photo of an investor dressed up as NIJISANJI talent Hyakumantenbara Salome:

Shareholder Questions Answered

Some of the questions shareholders asked during the said general meeting involve ANYCOLOR's VTuber business, such as NIJISANJI EN and Virtual Talent Academy.

The company is focusing on strengthening three areas: unit development and expanding profit opportunities, the Virtual Talent Academy and content production.

Investors asked questions prior to and during the event, such as the developments in the VTA, the cancellation of NIJISANJI EN AR Live "Colors", health care and anti-defamation measures, investment in studios and new technologies such as augmented reality (AR), merchandise development, talent management and strengthening of talent compliance, among others.

Talent Management

According to Representative Director Tazumi, ANYCOLOR's mission is to produce individuals with untapped talents, introducing them as VTubers to the public and providing them the opportunity to be acknowledged worldwide.

However, he stressed the avoidance of reducing support for existing VTubers by focusing solely on producing newcomers. They seek to balance efforts for expanding fans of new and existing talents in order to achieve the company's growth.

He also mentioned that the company is not considering bringing in existing VTuber talent like what they have done with the NIJISANJI Network partner program. There may be room for consideration in the mid- to long-term, although they are cautious about it.

As the company views VTubers' medium to long-term success essential, the business leader said that it is strengthening compliance for new and long-standing streamers through pre-training and periodic reminders, as well as conducting compliance training and preparing measures to handle cases of public backlash. He states that it can be challenging to recover an audience once a VTuber faces backlash or develops a negative image.

Addressing the considerable number of graduations, Tazumi expresses the company's sadness when streamers who showcase their talents as VTubers decide to leave. However, they sincerely communicate with them and see them off when they choose to pursue other paths while respecting their decisions.

The company would like to expand its efforts in implementing measures against slander and other activities which trigger a talent's decision to change paths, as it is an important issue for them.

New Technologies

While he kept mum about future plans, Tazumi said ANYCOLOR will continue to invest in new tech and studios as an important initiative, so that they can create content that goes beyond the fans' and stakeholders' expectations.

When asked if they have plans to create its own distribution platform other than YouTube, the company would like to consider it carefully, as creating a platform akin to YouTube incur significant costs.

Tazumi also clarified that NIJISANJI EN targets English-speaking countries and is to be accepted as a language area and not a single country. When asked if they will introduce real-time translation for both Japanese and English, he mentions the gradual increase of generative AI use—but the company wants to approach that area with caution and careful consideration as it has reputational risk due to accidental mistranslation.

They are also asked if they are open to creating content on head-mounted displays such as Meta Quest 2, Tazumi said that there is potential for exploring content which uses virtual reality (VR) and AR in the long term.

Merchandise and Other Investments

Tazumi was asked regarding the inequality of available merchandise for each talent, something that they would like to work on to minimize the gap as much as possible within a fair and reasonable range. Each item is planned internally and communicated with the talents.

When asked to give a breakdown of cost of sales in terms of capital and equipment investment as well as talent compensation, Tazumi said that it includes compensation for streamers, platform commissions, and manufacturing costs. Some studio labor costs are also included, but the capital investment is small.

An investor suggested why not set up a physical store or satellite shops. Tazumi responded that it is not considered yet as of the moment, but they will positively consider based on cost-effectiveness and when the need arises.

The company is also keen on investing in human resources, recruiting mid-career workers, new graduates and creators; as well as constantly reviewing its incentives system to keep them motivated.

Tazumi also said that they have received comments from people interested in working with them after watching videos of AR Lives as well as behind-the-scenes documentaries such as the one produced for NIJISANJI Festival 2022. They continue to consider the possibility of providing such content in the future, as they believe sharing the process can be effective in attracting potential hires.

Regarding investors, Tazumi recalled that he had around 30 meetings with institutional investors; and since their listing in the Tokyo Stock Exchange, they have received requests for interviews from a large number of overseas institutional investors, which he said is promising. The company would like to consider joining overseas investor conferences or events with cost-effectiveness in mind to expand its presence among foreign investors.

Disclaimer: This post is produced for the understanding of the general public but is not intended to be referenced as basis for investment decisions. Should there be any discrepancy, the official stand of the company shall be of utmost priority, whenever available.

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Sources: スズキオンライン / ジョン・オービン