As mentioned earlier, we aim to provide investors with GENDA’s “intrinsic performance after M&A consolidation” (that cannot be fully assessed using the current fiscal year’s earnings).

• Clarification of “intrinsic performance after M&A consolidation”
  • The key concern for investors is our company’s steady-state earning capability.
• Assuming publicly announced M&A deals as of today contribute 12 months of earnings
• and one-off M&A-related expenses are not considered
  • This is substantially equivalent to next fiscal year’s forecast.
• 12 months of earnings from existing businesses plus publicly announced M&A deals
  • However, this assumes zero growth for existing businesses, making it strictly more conservative than next fiscal year’s forecast.
• If we were to disclose figures that include existing business growth, it would become impossible to determine the contribution from M&A.
• Next fiscal year’s growth for existing businesses depends on the current fiscal year’s growth.

Due to our continuous M&A activities, our earning capability can change in significant, discrete steps with each deal announcement, depending on the size of the M&A. We disclose our next fiscal year’s forecast to investors with a focus on providing timely and appropriate disclosure of our underlying earning capability at any given time.