They are two distinct PMI (Post-Merger Integration) initiatives in our North American mini-location business, and we are aiming to boost sales by placing prizes of popular Japanese IP, etc. into Kiddleton-style game machines. Driven by the strong demand for Japanese anime prizes in North America, both initiatives boast quick cash recoupment and high investment efficiency. Notably, if the same results are achieved, Add on is expected to recoup the cash even faster than SWAP.

• SWAP
  • “Replacement” of existing game machines. Mainly implemented at NEN, with smaller stores.
  • Replace existing game machines within the limited store space, and the number of machines installed remains the same before and after implementation.

• At NEN, sales pre- and post-SWAP showed an average increase of approximately 2.1 times across 515 locations (See FY2026/1 1Q Earnings Presentation).
• Add on
  • “Net increase” in new game machines. Mainly implemented at Player One, with large stores.
  • Leveraging the ample store space, add new game machines as a net increase without removing existing ones.

• Compared to NEN’s average monthly sales per unit of about $500 (derived from a 2.1x sales increase across 515 locations after implementing SWAP), the Add on initiative locations recorded average of approx. $1,000 per unit (See GENDA Store Development Progress Report (July 2025)).

Furthermore, assuming both SWAP and Add on were implemented at the same location, the cash recoupment period for Add on would be even shorter, 70% of that for SWAP (because there is no need to remove the cash flow from existing machinery with Add on). In PMI at Player One, we primarily focus on implementing Add on due to the abundance of available space.