At GENDA, IT personnel, including engineers, account for about 50% of total headcount, enabling internal execution of security management and product development.

Our in-house developed products are developed with a strong emphasis on security from the initial design phase. In addition, we have an in-house framework in place to respond promptly upon the discovery of any vulnerabilities.

On the organizational front, GENDA’s technology division centrally governs security throughout group companies, and our established standards are sequentially implemented across newly acquired entities.

In April 2025, we established “GENDA CSIRT,” a group-wide incident response team, and joined the Nippon CSIRT Association (NCA) later that same year. In addition, we have established and operate group-wide Information System Management Regulations and detailed implementation rules, conducting periodic reviews through internal audits and other assessments.

We view the protection of customer personal information as a critical priority; we restrict data handling to the strictly necessary minimum and appropriately manage access permissions. Regarding the use of generative AI, we have formulated group guidelines that clearly define rules for handling personal data and intellectual property.

Going forward, we will continue to systematically update our systems and conduct regular vulnerability assessments; however, all of these can be managed within our existing budget, and we do not anticipate any significant incremental investments at this time.

Yes. Looking ahead to next fiscal year and beyond, our commitment to generating FCF from our existing businesses remains unchanged.

As part of the strategic update announced in December 2025, we shifted our focus to turning existing business FCF positive by taking a highly selective approach to growth investments (growth Capex).

(Reference: page 9 of “FY2026/1 3Q Earnings Presentation” disclosed on December 12, 2025)

In the prior fiscal year ended January 31, 2026, FCF from existing businesses was in negative territory, as our growth Capex was running at roughly the same level as EBITDA.

For the current fiscal year ending January 31, 2027, despite expanding EBITDA, we plan to scale back growth investments to roughly half of last year’s level and deliver 5.0 billion yen in existing-business FCF.

Our Capex is mainly driven by gaming machine purchases, which are heavily weighted toward the first half. As a result, FCF generation is expected to be skewed toward the second half of the year.

Going forward into next fiscal year and beyond, our policy of generating solid FCF from existing businesses will not change, and our plan is to expand FCF alongside our EBITDA growth.

We plan to deploy generated FCF alongside borrowings primarily into M&A that enhances our EPS. On dividends, our fundamental stance is to deliver steady, disciplined year-over-year dividend growth, so long as it does not compromise our investments for growth.