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Disclosure9166GENDA Inc.Information and Communications, Services and Others

Frequently Asked Questions and Answers (July 2026)

We explained market trends, the policy for selecting M&A opportunities, growth at existing domestic stores, and the progress of the system migration and operational normalization in the North American business. In North America, the system migration is progressing, and we expect operations to normalize and cost synergy initiatives to resume from August onward.

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Decision and Details

Frequently Asked Questions and Answers (July 2026)

Decision31 July 2026 (disclosure date)
Period CoveredJuly 2026 and the second half of fiscal 2026 onward
ImplementationThe United States completed its full migration to the Kiddleton Force system in July 2026, while Canada is scheduled to complete its full migration from August 2026 (actual and planned)
Going forwardCanada will complete its full migration to Kiddleton Force from August 2026. We expect North American operations to normalize from August 2026 onward (the third quarter) and will resume cost synergy initiatives from August. We will maintain the management structure during the second half of the fiscal year.
AmountAmusement arcade market size (total sales): ¥614.7 billion; prize game sales: ¥417.7 billion
Quantity / scaleYear-on-year growth in the amusement arcade market: 114.2%; prize game share: 68.0%; GiGO-exclusive prizes: approximately 200 per year; June monthly same-store sales growth rate: 104%; final week of June compared with the same week of the previous year: 125.9%; monthly site visits by mini-locations before integration: approximately 15,000
Reason

This is because we are narrowing M&A opportunities to the Group's core areas and not pursuing opportunities with limited potential to contribute to earnings. The temporary slowdown in June same-store sales was due to weather-related factors, including typhoons. In North America, outstanding work associated with the parallel use of CCX and Kiddleton Force, together with the burden of adapting to the new system, had been weighing on the recovery in the number of site visits.

Impact on Business Performance

We expect North American operations to normalize from August onward (the third quarter). We will resume cost synergy initiatives from August and into the third quarter and beyond, and work to realize the cost synergies originally anticipated.

Decision and Details
ItemDetails
Matter CoveredFrequently Asked Questions and Answers (July 2026)
Decision Date31 July 2026 (disclosure date)
Implementation DateThe United States completed its full migration to the Kiddleton Force system in July 2026, while Canada is scheduled to complete its full migration from August 2026 (actual and planned)
Period CoveredJuly 2026 and the second half of fiscal 2026 onward
AmountAmusement arcade market size (total sales): ¥614.7 billion; prize game sales: ¥417.7 billion
Quantity / scaleYear-on-year growth in the amusement arcade market: 114.2%; prize game share: 68.0%; GiGO-exclusive prizes: approximately 200 per year; June monthly same-store sales growth rate: 104%; final week of June compared with the same week of the previous year: 125.9%; monthly site visits by mini-locations before integration: approximately 15,000
Impact on Business PerformanceWe expect North American operations to normalize from August onward (the third quarter). We will resume cost synergy initiatives from August and into the third quarter and beyond, and work to realize the cost synergies originally anticipated.
ReasonThis is because we are narrowing M&A opportunities to the Group's core areas and not pursuing opportunities with limited potential to contribute to earnings. The temporary slowdown in June same-store sales was due to weather-related factors, including typhoons. In North America, outstanding work associated with the parallel use of CCX and Kiddleton Force, together with the burden of adapting to the new system, had been weighing on the recovery in the number of site visits.
Related previous disclosuresPast disclosures titled "Frequently Asked Questions and Answers," as well as disclosures concerning the normalization of North American operations previously reported under "Previously Disclosed" (specific date and title: Not disclosed)
Future plansCanada will complete its full migration to Kiddleton Force from August 2026. We expect North American operations to normalize from August 2026 onward (the third quarter) and will resume cost synergy initiatives from August. We will maintain the management structure during the second half of the fiscal year.
Items this document does not state (2)
Decision-Making BodyGoverning Rule

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The decline in the number of M&A opportunities reflects the narrowing of targets to the Group's core areas and the decision not to pursue opportunities with limited earnings potential. The temporary slowdown in June same-store sales was due to weather-related factors, including typhoons. We explained that the decline in the number of North American site visits was caused by the parallel use of the legacy and new systems, as well as the burden of adapting to the new system.

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Frequently Asked Questions and Answers (July 2026) | GENDA Inc. (9166) timely disclosure | Komori