Change in Revenue Recognition Method Due to the Application of the Revenue Recognition Accounting Standard and Other Standards

「The Accounting Standard for Revenue Recognition and other relevant standards were applied from the beginning of the current fiscal year. In the amusement equipment sales business, agent transactions are recognized on a net basis, while in the amusement facility operations business, membership fees and other revenue are recognized over the service period.」

「The company applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, 31 March 2020, hereinafter the “Revenue Recognition Standard”) and other relevant standards from the beginning of the first quarter of the current fiscal year. Revenue is recognized at the point when control of the promised goods or services is transferred to the customer, at the amount expected to be received in exchange for those goods or services. As a result, for revenue from the amusement equipment sales business, transactions in which the company acts as an agent in providing products to customers, previously recognized the total consideration received from customers as revenue. This has been changed to recognizing revenue on a net basis, after deducting the amount paid to product suppliers from the amount received from customers. In addition, for revenue from the amusement facility operations business, membership fees and other amounts received from customers on the transaction start date under non-refundable contracts were previously recognized in full when payment was received. This has been changed to recognizing revenue over the period in which the services are provided.」