Leifras Secures Simultaneous Contracts with 24 Municipalities and 8 Private Schools for Regional Club Activity Expansion

Leifras Co., Ltd. (Nasdaq: LFS; Headquarters: Shibuya, Tokyo; CEO: Kiyotaka Ito), Japan's leader in children's sports school operations and school club regional expansion support, announced the simultaneous conclusion of management contracts for the 2026 fiscal year with 24 municipalities and 8 private junior high schools nationwide. This large-scale contract acquisition coincides with the start of the government-mandated "Reform Execution Period," demonstrating the company’s competitive advantage in a projected 500-billion-yen market and serving as a milestone for sustainable growth.

1. The 500-Billion-Yen Market and the "Reform Execution Period" Facing social issues such as teacher overwork and the need for specialized sports instruction, the Japanese government has designated the period starting in fiscal 2026 as the "Reform Execution Period." During this time, weekend club activities will be shifted from schools to regional or private management. With approximately 9,800 junior high schools and 128,000 club activities nationwide, the market size is estimated at 500 billion JPY. The government aims to transition 30.4% of weekend clubs (38,954 clubs) this fiscal year, signaling rapid market expansion.

2. Scaling into Major Metropolitan Areas In fiscal 2026, Leifras secured contracts with 24 municipalities (5 new, 19 renewals) and 8 private schools. A key component of the company's "Phase 2" strategy is expansion into high-density areas. Notably, new contracts include Ota Ward (Tokyo), Chiba City, and Kawasaki City—major urban centers that demonstrate the company's ability to scale operations in populous regions.

3. Track Record in Club Activity Support As a frontrunner in club outsourcing, Leifras maintains the top position in Japan with 381 contracted schools and support for 2,120 individual club activities.

4. Five Pillars of Competitive Advantage - Market Leadership: Ranked No. 1 in Japan by volume (381 schools, 2,120 clubs as of Dec 2025). - Government Networks: Strong collaboration with central bodies like the Japan Sports Policy Promotion Organization and the Japan JSPO. - Municipal Networks: Direct partnerships with 33 prefectures and 13 Tokyo wards, accumulating localized expertise. - Instructor Platform: A robust workforce across 46 prefectures, including 1,055 full-time employees and 3,544 crew members. - Safety Management: A rigorous training system that has maintained a record of zero major accidents or injuries since 2013.

5. Future Outlook Leifras aims to continue solving social issues like educational work reform while fostering the growth of children through regional cooperation. These recent contract successes provide significant momentum toward achieving the consolidated earnings forecasts for the fiscal year ending December 2026.