Net Debt\/EBITDA at 3.0x with no restrictions allows for approximately 25 billion yen in M&A capacity. Dividend initiation scheduled for the fiscal year ending January 2027, with a disciplined policy of annual increases prioritizing growth investments. 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Dividend initiation scheduled for the fiscal year ending January 2027, with a disciplined policy of annual increases prioritizing growth investments. Operational improvements underway in North American business expected to drive earnings recovery.","jir_summary":"### Borrowing Capacity and M&A Strategy\nOur borrowing covenants have no Net Debt\/EBITDA=3.0x restriction, and exceeding this temporarily in high-quality M&A transactions is within acceptable limits. With deals at EV\/EBITDA 5.0x, approximately 25 billion yen of additional investment is possible, and EBITDA additions from acquisitions limit deterioration of key ratios. Going forward, we will reduce interest-bearing debt through operating cash flow, continue growth investments while conserving borrowing capacity, and utilize equity-based M&A.\n\n### Background and Policy on Dividend Initiation\nHistorically, dividends were not paid as we did not consider returning profits to shareholders our priority. However, through dialogue with capital markets, we acknowledge that the presence of dividends is important for expanding the investor base. Dividends will start from the fiscal year ending January 2027, with disciplined annual increases that do not hinder growth investments. Dividend amounts will remain limited, with growth investment continuing as the top priority.\n\n### Factors Behind Strong Domestic Business\nIn the game center business, the lineup of GiGO-exclusive prizes has increased to over 200 types, supporting existing store sales growth of approximately 100\u2013110% Year-over-Year. The karaoke business has strengthened its distribution network by integrating industry-leading dealers, maintaining Karaoke BanBan's existing store growth rate of 101%. The foreign currency exchange machine business has increased revenue Year-over-Year through DX initiatives, with EBITDA up 1.5 times achieving high ROIC.\n\n### Operational Improvements in North American Business\nWhen the number of stores rapidly increased through M&A in North America, operational integration errors resulted in insufficient prize replenishment and revenue decline. The cause was identified in November 2025, when bank deposit rules were abolished, and patrol frequencies have been recovering since February 2026. The in-house AI business application 'Kiddleton Force' was introduced to optimize replenishment routes and perform image analysis. Earnings recovery is expected in the latter half of this fiscal year.\n\n### North American New Store Opening Plan\nWith the expansion of North American locations, comprehensive installation contracts with major chains have become active. Walmart stores in small spaces are being exited and new stores opened in tenant spaces 5 to 10 times larger. An agreement with AMC targets 170 locations to be completed by April. A contract with Applebee's covers 85 stores aiming for further expansion.","jir_financial_highlights":"Net Debt \/EBITDA: 2.7x (Approaching 3.0x but no restrictions)\nAdditional M&A Investment Capacity: Approx. 25 billion yen (Feasible with EV\/EBITDA 5.0x deals)\nExisting Store Growth Rate (GiGO): Approximately 100\u2013110% Year-over-Year (Stable growth)\nKaraoke BanBan Existing Store Growth Rate: Annual average 101% (Maintaining stable levels)\nForeign Currency Exchange Machine Business EBITDA Growth Rate: 1.5 times (comparing 11 months before and after group inclusion) (Revenue increased Year-over-Year)","jir_category":"","jir_hashtags":"#GENDACorporation, #general_ir, #JapaneseStocks","jir_key_figures":"Net Debt \/EBITDA: 2.7x (No 3.0x restriction)\nAdditional M&A Investment Capacity: Approx. 25 billion yen (Assuming EV\/EBITDA 5.0x deals)\nGiGO Existing Store Growth Rate: Approx. 100\u2013110% Year-over-Year\nKaraoke BanBan Existing Store Growth Rate: Annual average 101%\nForeign Currency Exchange Machine Business EBITDA: 1.5 times increase comparing 11 months before and after group inclusion","jir_meta_title":"GENDA Corporation, Net Debt\/EBITDA at 2.7x with 25 Billion Yen M&A Capacity, Dividend Initiation from 2027","jir_meta_description":"GENDA Corporation maintains Net Debt\/EBITDA of 2.7x with no 3.0x restrictions. Secures approximately 25 billion yen additional M&A investment capacity and plans to initiate dividends from fiscal year ending January 2027. Operational improvements in North America are expected to drive earnings recovery.","jir_og_title":"GENDA Corporation Announces M&A Capacity and Dividend Initiation","jir_og_description":"Net Debt\/EBITDA at 2.7x with 25 billion yen additional investment capacity. Dividends to begin in 2027 while continuing growth investments. Improvements in North American business progressing.","jir_og_image_url":"\/assets\/og\/company-general_ir.jpg","jir_chart_data_collection":"[]","ir_related_company":9398,"ir_release_date":"","ir_type":"","ir_is_new":false,"ir_document_url":"","jir_ir_type":"general_ir","footnotes":""},"sector":[],"importance":[],"class_list":["post-38148","ir_release","type-ir_release","status-publish","hentry"],"yoast_head":"\n