First, the M&A deals announced after the announcement of our full-year financial results on March 12, 2025, which announced the initial earnings forecast, are not currently included in our earnings forecast for the current fiscal year (ending on January 31, 2026).
- Unaccounted M&A deals in the earnings forecast for the current fiscal year (ending on January 31, 2026) (= M&A deals announced after the announcement of the financial results)
| 1. | A location of TETSUJIN Holdings | Karaoke |
| 2. | Game Goose | Amusement arcade in Japan |
| 3. | SI Amusement | Amusement arcade in Japan |
| 4. | Youing | Amusement arcade in Japan |
| 5. | A store of amusement facilities | Amusement arcade in Japan |
| 6. | A location of Global Staff | Karaoke |
| 7. | Player One | Amusement arcade in North America |
| 8. | Barberio | Amusement arcade in North America |
| 9. | Mini-locations of VENUplus | Amusement arcade in North America |
| 10. | Making LEMONADE Lemonica a wholly-owned subsidiary | F&B |
| 11. | eiga.com | Contents & Promotion |
- Reasons for not revising the earnings forecast for the current fiscal year (ending on January 31, 2026)
- Consequently, the latter half of the current fiscal year is anticipated to see active M&A.
- From today onward, and particularly for M&A deals in the second half of the fiscal year, the recognition of one-off M&A expenses will occur before their earnings contribution.
- As a result, there is a possibility these will offset each other, potentially leading to a negative impact on the current fiscal year’s performance (though naturally, they are expected to contribute significantly to next fiscal year’s earnings).
- We expect to pursue M&A actively over the next six months, yet our earnings forecast for the current fiscal year is unchanged.
- To give a specific example, an M&A completed at the fiscal year-end would make a negative contribution to the results of the fiscal year ending on January 31, 2026.
- There will be no earnings contribution to the fiscal year ending on January 31, 2026, from the M&A target company.
- The full amount of M&A-related expenses will be recognized in the fiscal year ending on January 31, 2026.
- Instead, M&A deals completed during the fiscal year ending on January 31, 2026, will provide a non-recurring positive contribution in the fiscal year ending on January 31, 2027.
- The M&A target companies will contribute their full earnings to the fiscal year ending on January 31, 2027 (12 months).
- No M&A-related expenses will be recognized in the fiscal year ending on January 31, 2027.
- Our official earnings forecast can only reflect the accounting-based forecast, which includes one-off M&A-related expenses.
- We cannot provide figures that exclude one-off M&A-related expenses (= adjusted figures).
- At this time, it is too early to tell which M&A deals will finalize by the fiscal year-end.
- Consequently, disclosure will be made once we have a clear view of M&A activity up to the fiscal year-end.
→ Furthermore, due to the reasons mentioned above, GENDA’s “intrinsic performance, including consolidated M&A targets,” cannot be accurately judged by “the current fiscal year’s results.” Therefore, we are disclosing “next fiscal year’s results,” which will effectively reflect this intrinsic value.