[M&A #2] Leifras Acquires 40-Year-Old Prestigious Club 'Tokai Sports' as a Wholly Owned Subsidiary

Leifras Acquires 40-Year-Old Prestigious Club 'Tokai Sports' as Wholly Owned Subsidiary

Leifras Co., Ltd. (HQ: Shibuya-ku, Tokyo; CEO: Kiyotaka Ito), a company boasting the top track record in Japan for sports school operation and extracurricular activity support, announced that it will acquire all issued shares of 'Tokai Sports Co., Ltd.,' a prestigious club with a 40-year history that has produced numerous world-class professional athletes, as the second pillar of its growth strategy. The acquisition is scheduled to be completed on June 1, 2026, making it a wholly owned subsidiary.

This is a strategic investment backed by the firm credit and funding power gained through its Nasdaq listing. Through the acquisition of approximately 1,200 sports school members and gymnastics class operations at about 20 partner kindergartens/nursery schools, the company intends to realize overwhelming market share expansion and a dramatic maximization of Customer Lifetime Value (LTV).

1. Strategic Significance of the M&A

### ① Fusion of Prestigious Brand and 'Non-Cognitive Skill Development' To address the structural issue of 'outflow of older students seeking本格 competitive environments,' the company will fuse the '40-year-old prestigious, competition-oriented brand' with its own unique 'education methodology for developing non-cognitive skills.' This will provide a comprehensive, high-quality development environment that fosters not only competitive techniques but also leadership and cooperation, thereby preventing member outflow.

### ② Acquisition of 1,200 Members and Acceleration of DX/Dominant Strategy This acquisition brings an immediate base of approximately 1,200 members (800 in soccer schools, 400 in gymnastics classes). This secures an overwhelming market share in the Nagoya and Owariasahi areas. Following the closing, the company will implement its member management and cloud-based time & attendance systems to digitize and improve the productivity of previously analog management tasks.

### ③ Maximization of LTV via Network of ~20 Partner Schools Tokai Sports holds a BtoBtoC foundation with approximately 20 partner kindergartens and nursery schools, characterized by strong trust and zero cancellations over the past three years. Utilizing this network, Leifras will build a seamless development path from gymnastics for infants to soccer schools for elementary students and junior youth for middle schoolers, maximizing LTV without incurring high acquisition costs.

2. Realization of the Roll-Up Strategy

Leifras will utilize the following serial M&A projects as successful models to lead the reorganization of Japan's fragmented sports and therapeutic care markets:

- **1st Stage (Executed May 2026)**: Acquisition of 4 childcare business locations, gaining 23 specialized staff and high-capacity assets. - **2nd Stage (Executed June 2026)**: Acquisition of the 40-year-old brand and approximately 1,200 members.

The company will expand its target base to overseas companies as well, continuing its growth as a platformer centered on 'Sports x IT x Global' by creating strong synergies with existing businesses.

3. Overview of Stock Acquisition

- **Target Company**: Tokai Sports Co., Ltd. - **Shares Acquired**: 400 shares (100% of issued shares) - **Closing Date**: June 1, 2026 (planned)