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Disclosure3697SHIFT Inc.Information and Communications, Services and Others

Notice Regarding Changes to Reportable Segments

From the fourth quarter of the fiscal year ending August 2026, the reportable segments, previously based on company units, will be changed to six categories based on the services provided: Consulting, Development, Testing, BPaaS, Fund and Other. The Company will report under the new classification starting with its fourth-quarter and full-year results for the fiscal year ending August 2026.

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Decision and Details

Board of Directors

Changes in Reportable Segments

Decision25 August 2026
Period CoveredFrom the fourth quarter of the fiscal year ending August 2026 onward
ImplementationScheduled to take effect from the announcement of the fourth-quarter and full-year results for the fiscal year ending August 2026, scheduled for 15 October 2026
Going forwardThe Company will report under the revised segments starting with the announcement of the fourth-quarter and full-year results for the fiscal year ending August 2026, scheduled for 15 October 2026.
Quantity / scaleChange from 3 former reportable segments to 6 new reportable segments and other categories
Reason

To appropriately visualize the expansion of the value provided through new AI-centered services and improve the accuracy of management control and performance evaluation. The Company also confirmed that the new performance management framework is aligned with the actual state of management control and performance evaluation.

Decision and Details
ItemDetails
Matter CoveredChanges in Reportable Segments
Decision-Making BodyBoard of Directors
Decision Date25 August 2026
Implementation DateScheduled to take effect from the announcement of the fourth-quarter and full-year results for the fiscal year ending August 2026, scheduled for 15 October 2026
Period CoveredFrom the fourth quarter of the fiscal year ending August 2026 onward
Quantity / scaleChange from 3 former reportable segments to 6 new reportable segments and other categories
ReasonTo appropriately visualize the expansion of the value provided through new AI-centered services and improve the accuracy of management control and performance evaluation. The Company also confirmed that the new performance management framework is aligned with the actual state of management control and performance evaluation.
Related previous disclosuresDisclosure announced in October 2025 (title not stated)
Future plansThe Company will report under the revised segments starting with the announcement of the fourth-quarter and full-year results for the fiscal year ending August 2026, scheduled for 15 October 2026.
Items this document does not state (3)
AmountImpact on Business PerformanceGoverning Rule

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

As the scope of the Company's business offerings has expanded through the growth of AI-centered services and the establishment of funds, the change is intended to appropriately visualize the substance of the value provided and improve the accuracy of management control and performance evaluation. The Company also confirmed that the new performance management framework is aligned with the actual state of management control and performance evaluation.

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding Changes to Reportable Segments | SHIFT Inc. (3697) timely disclosure | Komori