(Correction & Numerical Data Revision) Partial Corrections to the “Financial Summary for the Fiscal Year Ending January 2026 [Japanese GAAP] (Consolidated)” and “Full-Year Earnings Presentation Materials for the Fiscal Year Ending January 2026”

Performance Overview

For the fiscal year ending January 2026, consolidated results showed net sales of JPY 170,787 million (52.7% YoY increase), operating income of JPY 7,695 million (2.7% YoY decrease), ordinary income of JPY 6,217 million (14.2% YoY decrease), and net income attributable to owners of parent of JPY 3,826 million (17.6% YoY increase). Adjusted EBITDA rose to JPY 22,839 million (48.6% YoY increase), and adjusted net income increased to JPY 9,276 million (53.5% YoY increase). Despite increased M&A-related expenses, aggressive M&A strategies drove significant net sales growth and accelerated global expansion.

Segment Performance and M&A Overview

The Entertainment Platform Business posted net sales of JPY 156,519 million (55.1% YoY increase) and adjusted segment income of JPY 20,995 million (44.5% YoY increase), supported by new openings and roll-up M&As of amusement and karaoke facilities domestically and internationally. The Entertainment Content Business recorded net sales of JPY 21,363 million (47.7% YoY increase) and adjusted segment income of JPY 835 million (104.5% YoY increase), with progress in film distribution and VR attraction expansion. The fiscal year ending January 2026 included 26 M&A transactions, increasing the number of consolidated subsidiaries to 45.

Financial Position and Cash Flow

Total assets reached JPY 222,643 million (an increase of JPY 107,678 million compared to the previous fiscal year-end), total liabilities were JPY 157,285 million (increase of JPY 77,959 million), and total net assets amounted to JPY 65,357 million (increase of JPY 29,718 million). Cash flow from operating activities was positive at JPY 13,919 million, investing activities cash flow was negative at JPY 72,391 million, and financing activities cash flow was positive at JPY 64,958 million, resulting in cash and cash equivalents rising to JPY 31,901 million.

Outlook

For the fiscal year ending January 2027, consolidated earnings forecasts anticipate net sales of JPY 215,000 million (25.8% YoY increase), adjusted EBITDA of JPY 30,000 million (31.3% YoY increase), and adjusted net income of JPY 10,600 million (14.2% YoY increase). The company plans to drive full-year contributions from existing stores, improve operations, acquire new businesses, and promote management efficiency through group organizational restructuring.