Notice Regarding Change in Shareholder Return Policy

Overview of Change in Shareholder Return Policy

GENDA Corporation aims to become the world's leading entertainment company by 2040, having so far prioritized capital allocation to M&A and organic growth. In the financial announcement in December 2025, the company revealed its policy to achieve positive free cash flow, prompting a review of capital allocation against a strengthened financial base. Share buybacks are positioned as a strategic measure to efficiently secure shares for future M&A consideration by acquiring shares during periods of price decline.

Dividend Initiation and Future Policy

Previously, dividends were not paid to prioritize growth investments, but following dialogue with the capital markets, dividend payments will commence from the fiscal year ending January 2027. Dividends will be paid within limits that do not hinder growth investments, with plans to increase annually. While the absolute level of dividends remains limited given the growth phase, the company places strategic importance on expanding its investor base. Going forward, the company will continue to prioritize growth investments while maintaining a collaborative approach with the capital markets.