Market A Fragmented Industry that is Ripe for Consolidation Pachinko, along with public lotteries and horse, motorboat, and cycle racing, is one of the key segments of the Japanese gaming industry. Pachinko and its variants, account for more than two-thirds of total gaming industry revenue by volume in Japan. The Japanese pachinko industry is highly fragmented, with an estimated 4,109 operators and 12,479 stores housing an aggregate of approximately 4.5 million pachinko machines throughout the country. The largest operator is Maruhan Co., Ltd., whose gross revenue is approximately two trillion yen (USD $25 billion) and who operate 269 stores throughout Japan. Dynam Co., Ltd., the second largest operator in Japan, generates 853 billion yen (USD $9.9 billion) and operates 346 stores throughout Japan. Smaller stores average 100 to 200 machines while larger stores, such as one of the stores belonging to Kinbasha, have 500 or more machines. Kinbasha is the largest operator in Ibaraki prefecture and ranks in the top 50 in the entire Japanese pachinko industry by number of parlors. Kinbasha competes with other pachinko stores in close proximity to its stores on the basis of customer service, equipping its stores with the most popular game titles, effectively managing promotions, offering attractive prizes and efficient brand driven advertising campaigns. Of Kinbasha’s 21 Pachinko parlors, 18 are located in Ibaraki prefecture, an area that has a relatively low population density (1,260/sq. mile) when compared with Tokyo (6,576/sq. mile) and Kanagawa (9,700/sq. mile) prefectures. Kinbasha currently operates two parlors in the Tokyo Metropolitan Area – one in the city of Fuchu and another in the city of Shinjuku. These parlors generate revenue which is, on average, three times greater than that of the Ibaraki parlors, all with positive cash flow. Kinbasha’s management would like to open or acquire two additional stores each year, over a five year period, provided additional capital can be obtained. Investor Q&A What is the stock symbol and CUSIP number for Kinbasha’s shares? Kinbasha’s stock symbol is KNBA and the CUSIP number is 494488208. (CUSIP stands for Committee on Uniform Security Identification Procedures, an American Bankers Association entity that developed a system to uniquely identify securities trading in the United States.) Kinbasha shares are listed on the OTCQX, with Real-Time Level 2 quotes for the company on otcmarkets.com. Kinbasha is the first SEC-reporting company with a majority of its operations in Japan to join OTCQX. How can I purchase Kinbasha stock? Shares of Kinbasha stock can be purchased directly through the company’s stock transfer agent, or you may purchase shares directly from a broker or from another stockholder. Who is the stock transfer agent for Kinbasha? The transfer agent for Kinbasha’s common stock is Continental Stock Transfer & Trust Company (212-509-4000). The transfer agent’s address is, 17 Battery Place, 8th Floor, New York, NY 10004. Where can a potential investor get information about Kinbasha? The Kinbasha U.S. investor web site provides a wide range of information, including corporate overviews, industry descriptions, and other financial and operational material. Visitors to the site will find additional information and Investor Relations assets as they become available. How can I get a copy of the materials filed with the Securities Exchange Commission (SEC)? Kinbasha’s SEC filings are made available over the Internet by various service providers, including the Kinbasha website Investors page, or you can search and download the information directly from the SEC website, at sec.gov. Who are the corporate officers of Kinbasha? Biographies of Kinbasha’s corporate officers and related information can be found on the Management page of Kinbasha’s website. How do I contact Kinbasha’s Investor Relations? The easiest way to reach Kinbasha’s IR group is by email at info@trilogy-capital.com © 2021 Kinbasha Inc. All Rights Reserved. | Hitachi-shi, Ibaraki | Japan | info@kinbashainc.com Kinbasha Gaming Pachinko Slot Machines Market Management Legal notice