Following a pilot program, the new initiative aims to expand in scale, enabling teachers to choose whether to teach through side jobs.

TOKYO, March 12, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement, today announced that it has entered into a contract (the "Contract") with Shime Town, Kasuya District, Fukuoka Prefecture ("Shime Town") to support the transition of junior high school club activities to local communities in Shime Town and to provide sports instruction and related management services.

Leifras has been engaging in a one-year pilot program in Shime Town from April 2025 (the "Pilot Program"). Through the new initiative under the Contract (the "Initiative"), Leifras expects to advance nationwide reforms to improve teachers' working conditions while establishing a system for compensated "side jobs" that allows teachers who wish to provide guidance for club activities to receive fair compensation, thereby creating a new model for regional club activities.

Contract Overview

Client: Shime Town, Kasuya District, Fukuoka Prefecture
Contract Period: February 2, 2026 to March 31, 2027 (Leifras' instruction services are scheduled to commence from April 2026)

Background: Nationwide Transition Pursuing Better Club Activities for Both Children and Teachers

Japan's transition of extracurricular club activities to local communities aims to ensure that children continue to have opportunities to engage in diverse sports and cultural activities even amid declining birthrates. At the same time, the transition seeks to enhance the quality of school club activities through specialized instruction by experienced professionals. Additionally, the transition also helps reduce the burden on teachers, who have long faced challenges such as long working hours due to supervision duties on holidays, thereby promoting reforms in teachers' working practices.

The core of the transition lies in building a sustainable club activity framework while maintaining the educational roles that club activities have traditionally fulfilled in Japan: fostering social skills and character development. However, many teachers have expressed sentiments for teaching club activities. Additionally, numerous students have expressed anxiety about the future, asking whether teachers will still be able to participate in club activities.

The shift to community-based club activities is an educational reform that aims to provide children with the optimal environment for club activities while also increasing the options available to teachers regarding club activity instruction. Under the Contract with Shime Town, Leifras' instructors are expected to take the lead in guiding club activities on holidays, creating an environment where children can receive specialized instruction. Meanwhile, teachers who wish to continue guiding club activities can do so as "side jobs" with permission from their schools and receive compensation for their work. The Initiative aims to build a sustainable framework for club activities. In the Pilot Program, three teachers in Shime Town conducted extracurricular club activities on holidays as compensated side jobs.

Future Prospects: From Pilot Testing to Full-scale Implementation

With the Pilot Program, Leifras has accumulated expertise in managing club activities tailored to Shime Town through engagement in Shime Town's transition of junior high school club activities to community-based programs.

Through the Initiative, Leifras plans to expand its scope and continue working alongside Shime Town to build a sustainable sports environment through collaboration among the municipality, schools, and private-sector companies.

Market Environment and Trends

Japan's Ministry of Education, Culture, Sports, Science and Technology ("MEXT") has designated the six-year period from 2026 to 2031 as the "Reform Implementation Period" under its "Comprehensive Guidelines for the Reform of Club Activities and the Promotion of Community Club Activities". The guidelines state the following specific initiatives for this period:

• Holiday Club Activities: In principle, MEXT aims to shift all holiday club activities to community-based models.
• Weekday Club Activities: MEXT plans to execute further reforms while addressing various issues.

This signifies that following the previous trial "Promotion Period (FY2023-2025)," the implementation of the guideline now entered a phase of full-scale implementation of community-based club activities across all local governments nationwide.

The Contract with Shime Town commences in the first year of the "Reform Implementation Period" (FY2026) and serves as a pioneering case aligned with the national policy roadmap.

As this nationwide transition to community-based clubs accelerates, Leifras aims to further strengthen its position in the expanding market for outsourced public education-related services.

Achievements in Club Activity Support

Leifras has been supporting school clubs since before the nationwide call for localization of club activities, and has been cooperating with a number of local governments across Japan. The Company's financial results for the nine months ended September 30, 2025 also reflected this high demand for school club support, with social business sales increasing 36.4% year-on-year and the number of schools contracted for club activities increasing 53.2% year-on-year, demonstrating continued rapid growth.

• Social business sales: JPY 2,358.6 million (+36.4% year-on-year)
• Number of schools contracted for club activities: 360 schools (+53.2% year-on-year)

Selected Ongoing Projects Since Fiscal Year 2024

Leifras is expanding its portfolio of club activity support projects, including multi-year contracts, primarily in urban areas and large municipalities.

• Aichi Prefecture, Nagoya City (Chikusa Ward, Showa Ward, and 12 other wards): New athletic and cultural activity projects at Nagoya City elementary schools
• Aichi Prefecture, Nagoya City: Nagoya Club Activity Talent Bank Contract Project Tokyo, Minato Ward: Club activity coaching services

Selected New Projects Since Fiscal Year 2025

• Osaka Prefecture, Suita City: Suita City Junior High School Club Activity Management and Operation Services
• Tokyo, Shibuya Ward: Operation and management personnel and specialized instructor placement for 10 athletic clubs at two public junior high schools
• Hokkaido, Monbetsu City: Monbetsu City Community Club Management Services

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, 2024, 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." The 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, and other factors discussed in the "Risk Factors" section of the registration statement 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 registration statement 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