By leveraging HR Produce's extensive childcare network of over three thousand corporate entities and over ten thousand facilities, the alliance marks an important step in Leifras' strategy to expand its presence in Japan's preschool market, while creating new revenue growth opportunities.

Pursuant to the Agreement, HR Produce agrees to provide information about Leifras' sports school service and Milabo measurement service to corporations and daycare centers with which HR Produce has a partnership. Through the alliance, Leifras intends to leverage HR Produce's network to deploy Leifras' Milabo system and comprehensive multi-sport school programs across childcare facilities nationwide. The partnership is also designed to help address key management issues facing the childcare industry while solidifying Leifras' presence in the strategically critical preschool consumer market.

Strategic Background: Addressing Retention, Recruitment, and Differentiation Competition

The Japanese childcare sector is facing persistent structural challenges, characterized by a high industry turnover rate and soaring recruitment costs. Addressing these issues requires a shift from reactive hiring to human capital optimization. Meanwhile, a declining birthrate has intensified competition among childcare facilities, increasing the need to enhance brand value. This alliance combines Leifras' expertise in sports-based non-cognitive education with HR Produce's organizational consulting capabilities to enhance childcare operations.

Service Deployment and Institutional Benefits

Through this alliance, Leifras expects to deliver high-quality services that provide mutual benefits to childcare management, frontline staff, and parents.

1. Integrating Milabo to Visualize Early Childhood Development

Milabo is Leifras' proprietary Education X Technology platform that quantifies children's non-cognitive life skills, such as leadership, cooperation, and manners, backed by data analytics from over 200,000 profiles.

Empowering Staff & Improving Retention: The platform provides intuitive, radar-charted individual and collective developmental profiles, enabling nursery teachers to communicate children's progress with parents using objective data. By mitigating the communication burden of parent-teacher communication, the platform can improve the work environment, potentially boosting employee retention and recruitment competitiveness.
Elevating Childcare Brand Equity: Childcare facilities in HR Produce's network can actively utilize the tool to brand their facilities as innovative institutions that cultivate life skills through data-driven education, laying a foundation for parents' organic, word-of-mouth referrals.
2. Launching On-Site "Leifras Sports Schools" Utilizing Existing Facilities

Leifras plans to deploy professional coaches to establish tailored sports academies directly within the nursery yards, halls, or classrooms in HR Produce's network, requiring as little as half a basketball court.

13 Specialized Sports Schools: Childcare facilities can select optimal programs aligned with their needs, from Leifras' 13 sports schools, such as soccer, basketball, dance, karate, and "JJMIX"—a specialized multi-sport program engineered for preschool-aged children.
Transportation Convenience for Dual-Income Parents: With the rise of dual-income households, weekday transportation to extracurricular activities has become a significant challenge for parents. By receiving sports instruction directly at childcare facilities, children can participate in structured athletic programs with familiar peers without requiring additional travel or scheduling commitments from families.
Future Outlook: Building a Sustainable Education Ecosystem

This alliance is designed to further facilitate Leifras' expansion in the preschool sector. By combining both companies' specialty, Leifras aims to structurally support childcare providers while expanding its baseline infrastructure to help young children cultivate "Fitness for the Mind and Heart" from infancy.

The Company anticipates that the roll-out of this sales partnership will expand its high-quality business-to-business-to-consumer revenues and support its long-term growth objectives.