The 3 Basic Strategies: Expanding Existing Businesses, Strengthening Operational Functions, and Expanding into New Business Areas

「Regarding the expansion of the childcare business under the “Management Strategy for Achieving ‘2030 Triple Trust,’” the acquisition of shares in 株式会社アソシエ・アカデミー was completed on 31 July 2025, as announced on 20 June 2025 and 31 July 2025 in “Notice Regarding the Acquisition of Shares in 株式会社アソシエ・アカデミー (Making It a Subsidiary).” Hereinafter, 株式会社アソシエ・アカデミー is referred to as アソシエ・アカデミー.」

「Against this backdrop, in November 2024 the Company announced its “Management Strategy for Achieving ‘2030 Triple Trust’” and formulated the following new management strategies. • Childcare business: Positioning “ensuring safety and security” as the top priority, the Company will develop systems to ensure safety, introduce the Jena Plan, improve enrollment rates, optimize staffing levels, improve productivity, and expand scale through M&A. • New businesses: Develop and expand businesses related to childcare. • ICT strategy: Use its digital infrastructure to improve operational efficiency and quality and provide added value. • Human resources strategy: Secure personnel with the necessary skills and experience and develop “adults who shine.” • Capital strategy: Maintain financial soundness, improve capital efficiency, and enhance shareholder returns.」

「Amid significant changes in the external environment surrounding the childcare support business, our group announced the Medium-Term Management Plan 2024 on 12 November 2021 and continued to pursue initiatives centered on 3 measures, “scale expansion,” “functional enhancement” and “foundation strengthening,” during the consolidated fiscal year, the final year of the 3-year plan.」

「Amid significant changes in the external environment surrounding the childcare support business, our group announced the Medium-Term Management Plan 2024 on 12 November 2021 and continued to pursue initiatives centered on 3 measures, “scale expansion,” “functional enhancement” and “foundation strengthening,” during the consolidated fiscal year, the final year of the 3-year plan.」

「Amid significant changes in the external environment surrounding the childcare support business, our group has been pursuing initiatives under the Medium-Term Management Plan 2024, announced on 12 November 2021, centered on 3 measures: “scale expansion,” “functional enhancement” and “foundation strengthening.”」

「Amid significant changes in the external environment surrounding the childcare support business, our group has been pursuing initiatives under the Medium-Term Management Plan 2024, announced on 12 November 2021, centered on 3 measures: “scale expansion,” “functional enhancement” and “foundation strengthening.” As a specific measure to expand scale, on 18 April 2023 the company entered into a share transfer agreement to acquire all shares of 株式会社おはようキッズ (formerly 東京建物キッズ株式会社), which operates primarily Tokyo-approved childcare facilities targeted by the group, and made it a wholly owned subsidiary effective 1 June. For details, please refer to “Part 4 Accounting Status, 1 Quarterly Consolidated Financial Statements, Notes (Business Combinations and Other Matters).” In addition, the company determined that reorganizing the group headquarters functions was essential to improve productivity in order to diversify revenue sources through the strengthening of new businesses intended to enhance functions, and transferred part of 株式会社グローバルキッズ’ childcare support business to 株式会社GKS effective 1 April 2023. As a foundation-strengthening measure, the company is developing a childcare platform, a key element of its ICT strategy, and continues to invest actively. It also launched its extracurricular education business, “GlobalKids Plus＋,” in Toyosu in June 2023.」

「As a specific measure to expand scale, on 18 April 2023 the company entered into a share transfer agreement to acquire all shares of 東京建物キッズ株式会社, which operates primarily Tokyo-approved childcare facilities targeted by the group.」

「As part of the transition under the Medium-Term Management Plan (2024) from the “business expansion” phase to the “business expansion and business diversification” phase, the company is reviewing its organizational structure as part of a project to improve profitability.」

「The company is moving from the “business expansion” phase it has pursued since its founding to a phase of “business expansion and business diversification.” Based on the following 3 basic policies, it will further strengthen the ICT capabilities and financial and capital strategies supporting its new business strategy.」

「On 19 July 2022, the company entered into a basic agreement concerning the integration of its management with SAKURASAKU PLUS,Co.,Ltd.」

「The company is moving from the “business expansion” phase it has pursued since its founding to a phase of “business expansion and business diversification.” Based on the following 3 basic policies, it will further strengthen the ICT capabilities and financial and capital strategies supporting its new business strategy. ・Scale expansion: Expand the childcare business through organic growth and M&A ・Functional enhancement: Establish the foundation for new businesses ・Foundation strengthening: Improve productivity and create added value through the strategic use of ICT」

「From a medium- to long-term perspective, our group holds shares that it deems contribute to increasing corporate value through its business strategy, maintaining and strengthening business relationships, facilitating transactions, securing childcare professionals, improving childcare quality and expanding adjacent businesses.」

「Under the Medium-Term Management Plan “2022” for sustainable growth, our group has established the following policy and will pursue 3 priority themes: <Policy> Build the foundation of the childcare business toward the vision and maximize economies of scale.」

「① Focus on expanding the existing childcare business: “Scale expansion” ・Increase the number of facilities through a dominant strategy ・Strengthen recruitment and retention of personnel ・Improve employee retention ② Strengthen the operating structure: “Improve profitability” ・Improve the efficiency of facility operations ・Improve the efficiency of administrative work at headquarters ・Ensure compliance and thorough information management ③ Strengthen the business foundation: “Improve childcare quality and build the foundation for future growth” ・Develop human resources ・Promote expansion into adjacent business areas」

「Based on the outlook above, our group will pursue 3 basic strategies over the medium to long term to achieve sustainable growth. <3 Basic Strategies> ① Focus on expanding the existing childcare business: “Full commitment to immediate priorities” ・Expand the number of facilities by 15–20 annually through a dominant strategy ・Strengthen recruitment and retention of personnel ・Promote adjacent business areas ② Strengthen operating capabilities: “Build a stronger foundation” ・Develop human resources ・Improve the efficiency of the operating structure ・Ensure compliance and thorough information management ・Strengthen information dissemination capabilities ③ Broaden business areas: “Build the foundation for future growth” ・Identify businesses offering synergies ・Prepare for overseas expansion」