P.40 Lifestyle Business (4)

Lifestyle Business Strategies for Business Bringing the “power to create a happy future for themselves” to local communities and to the world The environment surrounding the education industry is extremely challenging, marked by a declining birthrate, a shortage of human resources, educational disparities across regions, and the need to adapt to AI technology. However, amid growing interest in education toward the curriculum guidelines revision in 2030, what we have long advocated, “fostering the power necessary for chil- dren to create a happy future for themselves,” is precisely what society is demanding right now. At YARUKI Switch Group, we continue our efforts to spread educational methods that enhance human capability across Japan and around the world through a variety of approaches.

Naoshi Takahashi

President and CEO, YARUKI Switch Group Holdings Co., Ltd. Turning regional cram schools into subsidiaries

and developing markets through strategic partnerships

At “TERAKOYA GROUP Co., Ltd.,” an educational cram school group in Ehime Prefecture that became a consolidated subsidiary in 2024, the group newly launched the group cram school “TERAKOYA” as “Prep Academy” in September 2025. As a result, the number of inquiries has increased significantly since the fall of that same year. As YARUKI Switch Group, we also opened “Kids Duo,” an after-school program conducted in English making its debut in Ehime Prefecture, along with A large hanging banner at Matsuyama Airport “Child Eyes,” a specialized facility for intellectual training and entrance exam preparation. The display of a large hanging banner at Matsuyama Airport demonstrates our strong pres- ence in Ehime Prefecture, and with plans to establish a flagship hub for the TERAKOYA GROUP in 2026, we will continue to roll out such initiatives nationwide to restructure regional education and bridge regional disparities. Launched in 2024 and developed in partnership with Sanrio Company, Ltd., the immersive English conversation school “We Act!” established a joint venture company, “Sanrio YARUKI Edutailing Co., Ltd.” in 2025 to carry out future franchise package development, sales expansion, and implementation support. The business is progressing smoothly, with the open- ing of two new schools in March 2026. Additionally, through our initiative with the TBS Group, the franchise expansion of “Ninja Nine” operated by the JNN network stations has grown to 33 laboratories. Promotional activities by each station are energizing the entire area, thereby accelerating regional revitalization. Furthermore, the English educational program for young children “Listen Listen Hello ♪ English!,” planned and supervised by the bilingual preschool Kids Duo International (KDI) and produced by TBS TELEVISION, INC., is being streamed on TVer and broadcast on BS-TBS. YARUKI Switch Group provided planning cooperation and supervision for an English-language and intellectual training book featuring “Bebefinn,” a popular content of The Pinkfong Company, with whom TBS TELEVISION, INC. forms a partnership. Due to its popularity, a second book was also be released in June 2026. We provide educational content that blends children’s engagement with learning, ensuring peace of mind for parents. Meanwhile, new initiatives have also been launched. YP Switch Co., Ltd., a joint venture with Preferred Networks, Inc., which develops world-class AI, has fully launched its “AI Essay Correction Course for University Entrance Exams” in the spring of 2026, which returns detailed correction results in just one minute. This innovative package solves the challenges traditionally faced by instructors in essay guidance, such as “subjective evaluation” and “time and effort,” with AI-driven objectivity and overwhelming speed. It has received high praise in the PoC stage, and we will strengthen our expansion, includ- ing external sales. Additionally, from FY2026, we will fully launch “Study Tours,” a hands-on educational travel program for parents and children to learn together. By comprehensively designing every- thing from pre-learning to “authentic” on-site experiences and post-trip reflection, we elevate children’s curiosity into a true spirit of inquiry. And in January 2026, we entered into a capital and business alliance with Re-abroad Inc., a company specializing in study abroad services. Through this, we will provide a unique educational experience that connects domestic learning, over- seas experiences, and post-return career development, which previously existed as isolated points, into a single, seamless path. Moving forward, we will accelerate our expansion into Southeast Asia, further expanding the “YARUKI Method” both domestically and internationally, and making even greater strides toward realizing our philosophy: “Creation of a society in which we may all happily exist.” 40