Capturing customers from birth through a comprehensive business alliance with Kids Smile

「The Company and Kids Smile Holdings agreed on 20 March 2023 that, on the same date, the Company would acquire 50,000 common shares, representing 1.5% of Kids Smile Holdings’ total issued shares of 3,242,150 shares, rounded to the nearest 0.1%, from Representative Director and President Nakanishi Masafumi (中西正文), through an off-market negotiated transaction. They also agreed that Kids Smile Holdings would acquire 165,300 common shares of the Company, representing 0.1% of the Company’s total issued shares of 156,209,829 shares, rounded to the nearest 0.1%, through market purchases by 31 March 2023; the shares were acquired on 27 March 2023.」

「We have held events introducing our Group’s services to members of Kids Smile Project, which have led to new enrolments. We are also seeing results from the external sale of “KID’S PREP. PROGRAM,” an original education programme jointly developed by 伸芽会 and Kids Smile Project.」

「In addition, by introducing the services of our Group, including 伸芽会, ＴＯＭＡＳ and 名門会, to members of Kids Smile Project, approximately 4,000 people, and to customers of the above business, namely customers seeking entrance to elementary and junior high schools, we will further advance our Group’s customer-retention strategy nationwide.」

「Under this alliance, 伸芽会, a subsidiary of the Company, and Kids Smile Project, a subsidiary of Kids Smile Holdings, will mutually dispatch officers, including directors, to provide effective mutual support for their respective services. The original education programme “KID’S PREP. PROGRAM,” jointly developed by 伸芽会 and Kids Smile Project, and the business scheme established under this alliance will be rolled out nationwide to nurseries, certified childcare centres and other facilities. We will also secure outstanding personnel and establish recruitment systems and training programmes to attract excellent childcare workers, strengthen our content, brand and customer acquisition capabilities, and establish the foundation for our future growth strategy. In addition, by entering into a comprehensive business alliance agreement among 4 companies, including the respective parent companies, the Company and Kids Smile Holdings, we will further strengthen the relationship, retain students from age 0, and work toward sustainable growth and higher corporate value. In addition, by introducing the services of our Group, including 伸芽会, ＴＯＭＡＳ and 名門会, to members of Kids Smile Project, approximately 4,000 people, and to customers of the above business, namely customers seeking entrance to elementary and junior high schools, we will further advance our Group’s customer-retention strategy nationwide. Furthermore, within 6 months after the conclusion of this alliance, following discussions and agreement between the two companies and confirmation of compliance with the contractual provisions, we are considering the mutual holding of common shares of 株式会社リソー教育 and Kids Smile Holdings as a capital alliance, subject to a maximum amount of ¥300 million and a maximum of 5% of the total number of issued shares.」