Financial Summary for the Fiscal Year Ending January 2026 [Japanese Standards] (Consolidated)

Overview of Business Performance

For the fiscal year ending January 2026, consolidated net sales reached JPY 170,787 million (52.7% Year-over-Year increase). Adjusted EBITDA grew significantly to JPY 22,839 million (48.6% Year-over-Year increase), and adjusted operating income rose to JPY 13,345 million (27.2% Year-over-Year increase). Conversely, operating income was JPY 7,425 million (6.1% Year-over-Year decrease), and ordinary income was JPY 5,979 million (17.5% Year-over-Year decrease). Net income attributable to owners of parent totaled JPY 3,655 million (12.3% Year-over-Year increase), while adjusted net income achieved growth at JPY 9,405 million (55.6% Year-over-Year increase). M&A-related expenses of JPY 1,999 million were recorded, reflecting active corporate acquisitions.

Segment Performance and Promotion of M&A

The Entertainment Platform Business posted net sales of JPY 156,519 million (55.1% Year-over-Year increase) and adjusted segment profit of JPY 20,995 million (44.5% Year-over-Year increase). Contributions stemmed from new amusement facility openings and roll-up M&A activities both domestically and internationally. The Entertainment Content Business achieved net sales of JPY 21,363 million (47.7% Year-over-Year increase) and adjusted segment profit of JPY 835 million (104.5% Year-over-Year increase), reflecting growth. The number of consolidated subsidiaries expanded to 45 companies, with aggressive M&A promotion domestically and overseas aimed at business expansion and strengthening group synergies.

Financial Position and Cash Flow Status

At the end of the fiscal year ending January 2026, total assets were JPY 222,214 million (an increase of JPY 107,249 million compared to the previous fiscal year), total liabilities were JPY 157,032 million (an increase of JPY 77,707 million Year-over-Year), and total net assets were JPY 65,181 million (an increase of JPY 29,542 million Year-over-Year). Cash flows from operating activities were positive JPY 13,473 million, cash flows from investing activities were negative JPY 71,641 million, and cash flows from financing activities were positive JPY 64,958 million. The balance of cash and cash equivalents at fiscal year-end was JPY 32,209 million.

Outlook

For the fiscal year ending January 2027, net sales are projected at JPY 215,000 million (25.8% Year-over-Year increase), adjusted EBITDA at JPY 30,000 million (31.3% Year-over-Year increase), and adjusted net income at JPY 10,600 million (12.7% Year-over-Year increase). Contributions are expected from new store openings and M&A impacts throughout the year in the Entertainment Platform Business, as well as improved profitability through operational enhancements. Growth is also anticipated in the Entertainment Content Business through strengthened vertical integration, new VR facility deployments, and expansion of the film distribution business.