(1) Growth in existing businesses (organic growth) and (2) growth through M&A (inorganic growth).

(1) Growth of existing businesses

They are broadly classified into the following three categories.

• Increase in sales of existing businesses
• Increase in sales due to the full-year contribution in the current fiscal year of new stores opened during the previous fiscal year
• Increase in sales due to the contribution of new stores opened during the current fiscal year

We will open a certain number of new stores each year.

(2) Growth through M&A

They are broadly classified into the following three categories.

• Increase in sales due to the full-year contribution in the current fiscal year of the stores acquired through M&A during the previous fiscal year
• Increase in sales due to the contribution from stores acquired through M&A during the current fiscal year
• M&A of companies other than amusement arcades

We will aim to improve business performance by appropriately conducting post merger integration (PMI) of the newly grouped companies. We will also work to deliver “fun” to customers in rural areas by serving as a receptacle for stores that are suffering from a lack of successors to owners in regional cities and other areas.

M&A as inorganic growth will be conducted mainly in the amusement business and its peripheral areas.

The majority of the Company’s sales and profits are derived from the amusement arcade of its subsidiary, GENDA Inc. GiGO Entertainment Inc.

Therefore, sales tend to be higher in quarters with long holidays, when amusement arcades are in the midst of their commercial season.

Our fiscal year ends in January, and sales tend to be higher in the following order: 1Q (Feb-Apr) < 2Q (May-July/GW) < 3Q (Aug-Oct/summer vacation) < 4Q (Nov-Jan/New Year's holiday). In addition, we have our own "campaigns," which differ from seasonality. Depending on the timing of the campaign, our performance may fluctuate differently from normal seasonality.

Prizes of prize games are created by the manufacturers and purchased by each amusement arcade, so basically the same prizes are available at almost all amusement arcades. On the other hand, in some cases, our Group negotiates with IP publishers and other parties to purchase unique prizes that are available only to our Group. We refer to these unique prizes as “campaigns. Since the handling of prizes that other companies do not offer increases customers’ willingness to visit our stores, this is a factor that causes fluctuations in business performance that differ from normal seasonal fluctuations.