We are aiming for transformational growth through M&A, and we have changed our disclosure policy to highlight this growth strategy.

While we refrained from disclosing specific figures in our most recent earnings presentation, we did indicate that our existing businesses have continued to perform well, in line with last year’s solid trends. In fact, performance in the first quarter exceeded our initial target, and we are seeing continued resilience into the second quarter. Same-store sales growth for the most recent months has remained stable, with +7.0% in May, +2.1% in June, and +5.8% in July.

That said, as the scale of our business continues to expand, the impact of small fluctuations – such as slight up or down in same-store sales growth – has become increasingly limited in terms of its influence on overall earnings. In the context of our medium-term goal of reaching 75.0 billion JPY in EBITDA in the fiscal year ending on January 31, 2030, such metrics are no longer material.

Given this context, and in order to avoid undue investor reaction to a metric whose impact is fundamentally limited, we have decided to discontinue the disclosure of same-store sales growth going forward. The current disclosure will be our last on this metric.

• Allow us to re-emphasize our perspective on achieving transformational growth through M&A;
  • Our main focus is transformational growth through M&A.
• We do not disclose our annual mid-term management plans to uphold our M&A discipline.
  • On the other hand, we issued stock acquisition rights to 83 directors and employees last June to promote management from a shareholder’s perspective.
• One of the conditions for exercise is to achieve “EBITDA of 75.0 billion JPY in the fiscal year ending on January 31, 2030” (five times that of the fiscal year ending on January 31, 2025).
  • Our management strategy focuses on M&A, aiming to increase EBITDA fivefold within five years.
• Meanwhile, we are also focusing on organic growth, as evidenced by three of our different entertainment businesses (amusement arcade, karaoke and prize) simultaneously achieving record-high earnings since their inception last fiscal year.
• In addition, the organic growth in our U.S. operations has significantly outperformed Japan, making it a new cornerstone for organic growth.

We kindly ask for your understanding regarding our commitment to sustainable growth and enhancing enterprise value.