This transaction was decided upon following careful screening in accordance with that policy and was reached after a highly selective process.

The company has already established itself as one of the largest players in Malaysia as a brand that provides a high-quality karaoke experience.

Furthermore, compared to our domestic karaoke business, the company boasts higher profit margins and has consistently generated stable cash flow; therefore, it does not require radical restructuring post-acquisition.

Additionally, regarding the acquisition price, we have determined that the recoupment period based on free cash flow is well within our investment criteria.

The company’s integration into our group marks a significant first step in expanding Japanese-style karaoke culture overseas.

By leveraging the brand power and customer base that “Loud Speaker” possesses in Malaysia and combining them with our operational expertise, we aim to create new entertainment value.

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While our North American business remains our top company-wide priority at present, we acknowledge that some may have concerns regarding the potential strain on resource allocation given this acquisition.

In this regard, we would like to clarify that this project will not require significant additional resources post-acquisition; we are bringing a company with an already stable earnings base into the group at an attractive valuation.

Besides, regarding PMI (Post-Merger Integration), we have structured it so that our Karaoke Business Division will lead the efforts, separate from the teams handling North America and Amusement operations; therefore, there will be no competition for management resources.

Consequently, we believe that maintaining our focus on North America and steadily advancing this project are fully compatible, which is why we decided to proceed with this announcement.