Expanding Services to Address Growing Insurance Needs Associated with the Regional Transition of School Club Activities; Building a Framework to Provide Insurance Support to Municipalities, Schools and Other Organizations while Ensuring Legal and Regulatory Compliance

TOKYO, Sept. 10, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, and a leading operator of children's sports schools and school club activity support businesses in Japan, today announced its plan to enter the non-life insurance agency business.

Leveraging its sports school and social business platform, which provides school club activity support services nationwide and has attracted approximately 70,000 sports school members, the Company plans to add insurance services to its existing sports instruction and operations services, thereby providing more comprehensive support for safety and peace of mind in sports activities.

As the regional transition of school club activities progresses nationwide, there is a growing need among municipalities, schools and parents for information and support related to insurance coverage for accidents and injuries that may occur during club activities. In response, Leifras has completed the insurance agency registration and obtained the necessary insurance solicitation qualifications, enabling the Company to provide insurance explanations, enrollment consultations and related services to municipalities, schools and other organizations in compliance with applicable laws and regulations.

In the long term, Leifras also plans to develop new sports-focused insurance products and related services for individuals, including school club activity participants, sports school members and potentially their families. By leveraging the Company's deep understanding of sports environments to provide tailored insurance services, Leifras aims to create an environment in which children can participate in sports with greater confidence and security while developing a new source of revenue.

Addressing Growing Insurance Needs as School Club Activities Transition to Community-Based Programs

As the regional transition of school club activities progresses, Leifras is seeing increasing opportunities to operate school club activities on behalf of municipalities and community sports clubs. This expansion is also driving greater demand for information about insurance coverage for accidents and injuries, as well as support with enrollment procedures.

Leifras believes that, in order to build a sustainable community sports environment, it is important not only to operate school club activities but also to provide integrated support for the safety and well-being of participants.

At the same time, certain insurance-related activities such as providing specific explanations of insurance contract terms, recommending or soliciting enrollment, comparing products offered by other insurers, and accepting insurance applications, are required to be performed only by individuals who have been duly registered or notified as insurance solicitors. Through insurance agency registration and the acquisition of the necessary insurance solicitation qualifications, the Company has established a compliant framework for providing these services.

Leveraging the Existing Nationwide Youth Sports Foundation to Expand from "Instruction and Operations" to "Instruction, Operations, and Insurance"

Through its sports school business and school club activity support business, Leifras has established a nationwide presence in settings where children participate in sports.

This ongoing connection with youth sports has enabled the Company to understand the risks associated with sports participation, including the potential for injuries during competition and risks arising from different sports, activity formats and participation settings. It also provides insight into safety-related concerns faced by municipalities, schools and parents.

By entering the non-life insurance agency business, Leifras plans to establish a framework that integrates insurance support with its existing service offerings, with the aim of further enhancing its ability to support safe and secure participation in sports.

In addition to providing insurance services in connection with the Company's outsourced school club activity operations, the Company also plans to offer standalone insurance services, including insurance consultation, product explanation, and enrollment support, in response to the needs of municipalities, schools and other organizations nationwide, regardless of whether such organizations use the Company's outsourced school club activity services.

Developing Sports-Focused Insurance Services Leveraging a Membership Base of Approximately 70,000 Members

In the future, the Company plans to explore proprietary insurance products that leverage its approximately 70,000 sports school members and the expertise it has developed in sports environments.

Potential offerings under consideration include comprehensive accident insurance for school club activity participants and sports school members, with features such as coverage for injuries sustained during school club and sports school activities, 24-hour coverage plans, fully online enrollment procedures, and services that extend coverage to members' families.

By combining opportunities to participate in sports with insurance solutions designed to address unexpected incidents, the Company aims to build a new service model that provides greater reassurance for children, families and organizations involved in sports.

Comment from Mr. Hiroki Nishikaji, General Manager, Regional Solutions Support Division

"Our entry into the non-life insurance agency business is not simply about handling insurance products. By leveraging the expertise and customer base we have developed through our nationwide youth sports businesses and adding insurance as a new source of value to our existing instruction and operations services, we aim to provide more comprehensive support for safety and peace of mind in sports.

"Going forward, while listening to the needs of municipalities, schools and parents, we will develop insurance services tailored to the characteristics of sports activities, as well as new services for our members. We intend to grow the insurance business into one that both enhances the value of our existing operations and creates new revenue opportunities."

About LEIFRAS Co., Ltd.

Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2025, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." This holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics.

For more information, please visit the Company's website: https://ir.leifras.co.jp/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, the Company's ability to successfully enter and operate the new business, the risks associated with expanding into a new regulated industry in which the Company has limited operating experience, the Company's ability to maintain the required insurance agency registration and solicitation qualifications, and other factors discussed in the "Risk Factors" section of the annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the annual report and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

LEIFRAS Co., Ltd.
Investor Relations Department
Email: IR@leifras.co.jp

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com