We formally contacted MSCI with a request for correction on October 31, 2025, upon the disclosure of the “Frequently Asked Questions and Answers” on the same day, which was the date we, as a company, officially disclosed the revenue from our amusement poker business (approximately 0.2 billion yen per year ÷ Revenue of 111.7 billion yen for the fiscal year ending on January 31, 2025 = approximately 0.1%).

However, as the incorrect information stating 5% to 9.9% is still stated at present, we are currently continuing to request the quickest possible correction.

The timeline is as follows.

October 31: GENDA formally requested MSCI for correction on the same day we disclosed the “Frequently Asked Questions and Answers.”

November 3: MSCI contacted us, stating the information provided lacked sufficient detail.

November 5: GENDA submitted monthly sales data for the amusement poker business to MSCI.

November 21: The amusement poker revenue data we had submitted was added to our company’s page on MSCI. However, the gambling revenue ratio remains listed as 5 to 9.9%.

November 21: GENDA requested MSCI to correct the erroneous gambling revenue ratio once again.

As of today: Awaiting MSCI’s response.

The incorrect listing of our amusement poker business’s revenue ratio on MSCI has resulted in a situation where some institutional investors, who otherwise would have been considering purchasing our company’s shares, are currently finding it difficult to execute purchases due to restrictions in their investment mandates.

We will strive to ensure that the capital market, including MSCI, accurately understands our company’s business activities.

In conclusion, we have sufficiently secured the necessary funds to execute the share repurchase.

First, from a stock perspective.

We currently hold a cash and deposits balance of approximately 25.0 billion yen, which is a sufficient level even when factoring in a portion of our working capital needs.

Furthermore, we have implemented a CMS (Cash Management System) across all domestic group companies, centralizing the cash of each company into GENDA to thoroughly enhance overall funding efficiency.

Additionally, while we do not operate by accumulating excessive cash and deposits from the perspective of reducing funding costs, we maintain cash flow management with sufficient reserves at all times, preparing for the smooth execution of M&A and potential contingencies.

Next, from a flow perspective.

We plan for an EBITDA of 27.0 billion yen next fiscal year, which roughly corresponds to our annual cash inflow. Furthermore, this is fundamentally expected to be generated every year.

Moreover, as shown in the announcement of the financial results for the second quarter of the fiscal year ending on January 31, 2026, cash flow is expected to significantly increase compared to the past, due to the shift in policy towards achieving positive Free Cash Flow (FCF).

As stated above, the funds for the share repurchase are sufficiently secured from both the stock and flow perspectives.

The purpose of our issuing corporate bonds is not because borrowing from banks has become difficult, but rather to diversify our financing sources.

Currently, we are executing borrowings from banks for “working capital” or “M&A funding.”

In raising the latter “M&A funding,” we have been executing “short-term” borrowings limited to our main transaction banks in order to prioritize the speed of deal execution and information management.

Typically, these “short-term” borrowings have a repayment period of about one year, and they are often converted into long-term/permanent debt within that year. However, we proactively utilize corporate bonds to achieve this long-term conversion before the borrowing term matures.

The entire proceeds of the First Bond Issuance were allocated to the long-term/permanent funding conversion related to the equity acquisition of National Entertainment Network, LLC, which completed in November 2024. A portion of the Second Bond Issuance, which was issued in November 2025, is scheduled to be applied toward the long-term/permanent funding conversion for the share acquisition of Player One, a North American amusement arcade operator.

For our company, which has a credit rating of “BBB+,” although the cost of funding through corporate bonds tends to be relatively higher compared to bank borrowings, we deem it acceptable when considering

• The difference from the expected return of M&A, which is the use of funds, and
• The fact that we can develop investor segments that we could not previously access

Furthermore, we believe that if our company’s credit rating improves in the future, it will be possible to reduce our financing costs. In this manner, by utilizing corporate bonds as a financing tool and converting short-term bank borrowings into long-term/permanent funding at an early stage, we will establish a financial structure that enables us to continue transformational growth while maintaining an appropriate level of leverage.

We are aiming to become the world’s No.1 entertainment company in 2040 through “transformational growth through M&A.”

While advancing this continuous M&A strategy, we judged that it was more important to have our transformational M&A strategy’s outcomes evaluated as a long-term growth scenario, rather than focusing on the short-term fluctuations of domestic amusement arcades. Consequently, we discontinued the disclosure of the same-store sales growth rate.

On the other hand, we have received numerous strong requests from many investors and analysts asking us to “disclose data of same-store sales growth rate in order to grasp the robustness of existing businesses.”

This time, following careful internal deliberation, we have decided on a policy to resume the disclosure of this indicator.

As a company, we believe that sincerely engaging with and considering feedback from the capital market, and flexibly changing our management policies as necessary, is one of the most important duties of a listed company. Going forward, we will continue to dedicate ourselves to improving equity value based on dialogue with the capital market.

For reference: “Notice Concerning Issuance of GENDA Sales Progress Report (November 2025)” disclosed on November 20, 2025

We are currently aware that the market has a certain level of attention regarding the lock-up expiration on November 25.

Specifically, since the lock-up period due to the follow-on offering conducted last May has terminated on November 25, major shareholders whose share sales were restricted are now able to sell their shares.

We recognize that the expiry of the lock-up following an IPO (Initial Public Offering) is particularly scrutinized – as it allows major shareholders who have invested for a long time since the pre-listing period to sell for the first time – whereas the lock-up expiry due to a follow-on offering does not attract as much attention as the one following an IPO. In fact, in January 2025, when the lock-up due to the follow-on offering conducted in July 2024 expired, we did not receive any particular concerns from investors.

On the other hand, this time, it is also a fact that we have received numerous inquiries from a wide range of investors – both institutional and individual – regarding the potential sale of the remaining shares held by Mai Shin, who is a current director and a former Representative Director and President, and who sold more than half of her holdings in the follow-on offering this past May.

While we cannot comment on Shin’s personal stock holding policy, we would like to add the supplementary point that share sales are not easy for her because, in addition to her position as a current director, our company’s characteristic of conducting continuous M&A often leads to the possession of material non-public information, imposing considerable practical constraints on market sales of shares.

Furthermore, even if a situation were to hypothetically arise where Shin considers the disposal of shares, it is our company’s policy to take the most appropriate measures possible to minimize the impact on shareholder value.