GENDA Inc. (Headquarters: Minato-ku, Tokyo; Representative Director and Chairman of the Board: Nao Kataoka; Representative Director and President: Mai Shin; hereinafter “Company”) announces that we have decided to start considering the issuance of stock acquisition rights (paid stock options)(options issued in exchange for payment by the option recipient) (hereinafter “Stock Acquisition Rights”) aimed at officers and employees of the Company and its consolidated subsidiaries (hereinafter collectively referred to as “GENDA”) who meet certain conditions as follows.

GENDA has set the aspiration of “More fun for your days” and aims to build a global entertainment network and increase the “total amount of fun” distributed throughout the world to achieve this aspiration. In the process of building our unique Entertainment Ecosystem by M&A, while giving top priority of our strategy to roll-up M&A of amusement arcades, we have been proactively conducting M&A of entertainment companies and businesses that can be expected to have synergy effects with the operation of amusement arcades and building a structure in which the companies mutually contribute to business expansion and profits within GENDA. We have set “Continuous Transformational Growth” as a mainstay of our growth strategy and aim to “become the world’s No. 1 entertainment company in 2040.”

To expand our business performance and increase our enterprise value in the medium to long term, we have decided to start considering the issuance of the Stock Acquisition Rights for a fee to the officers and employees of GENDA for the purpose of further raising the motivation and morale of the officers and employees of GENDA and further enhancing their cohesion. By granting the Stock Acquisition Rights to the officers and employees of GENDA, it is expected to motivate them and to maintain and increase their commitment to their daily work and the increase in the enterprise value in the medium to long term, since future increases in stock price will be directly linked to their personal profits. Furthermore, for the Stock Acquisition Rights, since we assume that we will set tenure-linked condition for exercise, etc., we believe that this will encourage the officers and employees to stay in GENDA in the long term and will contribute to the stabilization of the organization.

As conditions for exercising the Stock Acquisition Rights, we plan to set “EBITDA of 75.0 billion yen or more in the fiscal year ending on January 31, 2030” as performance-linked condition for exercise and “being in office from the date of allocation till the end of January 2029” as tenure-linked condition for exercise. EBITDA of 75.0 billion yen will be equivalent to a growth of more than five times in five years from approximately 14.2 billion yen in the fiscal year ending on January 31, 2025.

In addition, dilution by the issuance of the Stock Acquisition Rights will not occur until the financial results for the fiscal year ending on January 31, 2030, are confirmed because we assume a scheme that the stock acquisition rights can be exercised only when both performance-linked and tenure-linked conditions for exercise are fulfilled.

■For more details, please refer to this timely disclosure.

■ GENDA Corporate outline
“More fun for your days”
To realize this Aspiration, GENDA is an entertainment company that aims to build a global entertainment network and increase the “total amount of fun” distributed throughout the world. We operate a wide range of businesses in entertainment, including Amusement, Karaoke, Character Merchandising, Food & Beverage and Contents & Promotions (movies, interactive contents, etc.). We operate approximately 800 amusement arcades such as “GiGO” and the karaoke chain “Karaoke BanBan” in Japan and abroad, as well as approximately 11,000 mini-locations (mainly gaming corners with 30 or less game machines installed). We operate in Japan, the United States, mainland China, Taiwan, the United Kingdom, the Middle East, Vietnam and the Netherlands.

Company name: GENDA Inc.
Representative: Representative Director and Chairman of the Board Nao Kataoka, Representative Director and President Mai Shin
Established: May 2018
Location: 17F Tokyo Shiodome Building, 1-9-1 Higashi-Shinbashi, Minato-ku, Tokyo
Web site: https://genda.jp/en
GENDA IR page: https://genda.jp/en/ir