In our presentation dated April 9, 2025, even when U.S. tariffs on China were as high as 104%, the impact was minor (approximately 3% compared to the current fiscal year’s target). As of July 31, 2025, those tariffs stand at 30%, making the impact on our performance even more negligible.

• Changes in U.S. Tariffs on China
• April 2, 2025:    20%→54%
• April 8, 2025:    54%→104% (the day before the announcement of M&A with Player One)
• April 10, 2025:  104%→145% (the day after the announcement of M&A with Player One)
• May 12, 2025:   145%→30% (90-day suspension)
• July 30, 2025:   30%→30% (re-extension of the 90-day suspension)

• Why the impact is negligible given our business model

(Source: page 14 of “M&A announced today” disclosed on April 9, 2025)

• Impact on prize costs
• The play price for our North American operations is low, at around US$1 per play.
• This can be fully absorbed through adjustments to play unit prices and other measures.
• Impact on machine (mini claw machine) costs
• The mini claw machines that we deploy in North America are relatively inexpensive.
• Even at the tariff rate of 104% as of April 9, the impact on our current fiscal year’s target is around 3%, indicating a negligible effect on overall performance. As of today, with the tariff at 30%, the impact is even more negligible.

• Optimizing PMI investment efficiency
• Start implementing PMI initiatives at locations in Canada, that is not affected by tariffs.
• We are prioritizing locations for PMI implementation, taking into account the difference in investment efficiency between the aforementioned SWAP and Add on.

• PMI leveraging the scale advantages of our North American locations
• We are currently integrating five companies: Kiddleton, NEN, Player One, Barberio and VENUplus.
• We are currently realizing various synergies from both revenue and cost perspectives, leveraging our 13,000 locations in North America.