P.39 Lifestyle Business (3)

Strategies

Lifestyle Business

for Business Lifestyle Business (Intellectual Training and Education) Combining the school business with content IPs to maximize TBS Group synergy Aiming to reach more than 140,000 students (by the end of February 2027)

YARUKI Switch

Group., Ltd.

introduction

video

Constituent companies YARUKI Switch Group Holdings Co., Ltd. YARUKI Switch Group Co., Ltd. Operation of education services and related franchise businesses School IE / CHILD EYES / Ninja Nine WinBe/Kids Duo/Kids Duo International i Kids Star/Kids Duo advanced Brands and segments 1.5 y/o 2 y/o 3 y/o Early childhood education and related services 4 y/o Elementary school Elementary school 5 y/o lower grades higher grades Middle school students High school students Brand overview Early childhood intellectual training and elementary school exam guidance Bilingual kindergartens to develop truly international people Bilingual childcare facilities that fuse education and childcare Kids’ sports classes to build athletic ability through the power of science After-school childcare/pre-school in English YP Switch Co., Ltd. YARUKI Switch Career Co., Ltd. TERAKOYA GROUP Co., Ltd. Operation of programming schools and guidance on establishing franchise schools for the above programs HALLO Recruitment, training, and dispatch of native-language human resources Operation of cram schools and other educational programs in Ehime, Kagawa, and Tokushima prefectures Business targets

• Improve profitability of existing schools through productivity enhancement and operational efficiency
• Increase the number of students per school
• Promoting the classroom revitalization business* and further strengthen classroom sale in FY2026
• Promote the development of new content and services
• Consider the use of M&A to drive growth
• Consider and promote global rollout
• Promote franchise expansion within the JNN network
• Strengthening governance and create secure, safe classrooms * Refers to a cycle in which unprofitable franchise schools are converted into directly operated schools, their profitability is improved through productivity enhancement,

and they are then resold to franchise owners. Individual education cram school business Market environment recognition

• While the declining birthrate continues, educational expenditures per household are on an upward trend. In addition, with personal consumption recovering, the market is expected to grow moderately.
• As the number of dual-income households increases, demand for childcare services remains high, and the early childhood education industry as a whole is expected to continue.

Competitive superiority

• Centered on the “YARUKI Method,” which inspires students through successful experiences, we are able to convert social needs and diverse content into educational services, creating programs that anticipate the needs of the times.
• Through close coordination among parents, School Directors, and instructors, we have established a cycle that encourages students to develop motivation independently and ensure thorough implementation across all schools.
• The capability to create IP education by combining media and technology Schools for learning English and English conversation through phonics World-class computer science education Fully-customized private tutoring schools Key issues and KPIs
• Expansion and bolstering of existing brands (no. of directly operated and franchise schools)
• Increase in enrollment (no. of students in directly operated and franchise schools)
• Promotion of new content development (no. of monetized projects)

Summary of current period financial results Increased revenue driven by the expansion of classrooms and student enrollment, as well as the consolidation of TERAKOYA GROUP Co., Ltd. However, operating profits declined due to factors such as higher personnel expenses. FY2025 results and FY2026 forecast Number of schools (FY2025 result): 2,489 Students* Revenue* Operating profit* FY2025 Approx. 138,000 ¥26,050 million ¥2,303 million performance FY2026 forecast More than 140,000 ¥28,900 million ¥3,100 million * Results from March 2025 to February 2026; forecast from March 2026 to February 2027 (Consolidated) 39

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