Company plans to add insurance services to its existing sports instruction and operations services, thereby providing more comprehensive support for safety and peace of mind in sports activities.

As the regional transition of school club activities progresses nationwide, there is a growing need among municipalities, schools and parents for information and support related to insurance coverage for accidents and injuries that may occur during club activities. In response, Leifras has completed the insurance agency registration and obtained the necessary insurance solicitation qualifications, enabling the Company to provide insurance explanations, enrollment consultations and related services to municipalities, schools and other organizations in compliance with applicable laws and regulations.

In the long term, Leifras also plans to develop new sports-focused insurance products and related services for individuals, including school club activity participants, sports school members and potentially their families. By leveraging the Company's deep understanding of sports environments to provide tailored insurance services, Leifras aims to create an environment in which children can participate in sports with greater confidence and security while developing a new source of revenue.

Addressing Growing Insurance Needs as School Club Activities Transition to Community-Based Programs

As the regional transition of school club activities progresses, Leifras is seeing increasing opportunities to operate school club activities on behalf of municipalities and community sports clubs. This expansion is also driving greater demand for information about insurance coverage for accidents and injuries, as well as support with enrollment procedures.

Leifras believes that, in order to build a sustainable community sports environment, it is important not only to operate school club activities but also to provide integrated support for the safety and well-being of participants.

At the same time, certain insurance-related activities such as providing specific explanations of insurance contract terms, recommending or soliciting enrollment, comparing products offered by other insurers, and accepting insurance applications, are required to be performed only by individuals who have been duly registered or notified as insurance solicitors. Through insurance agency registration and the acquisition of the necessary insurance solicitation qualifications, the Company has established a compliant framework for providing these services.

Leveraging the Existing Nationwide Youth Sports Foundation to Expand from "Instruction and Operations" to "Instruction, Operations, and Insurance"

Through its sports school business and school club activity support business, Leifras has established a nationwide presence in settings where children participate in sports.

This ongoing connection with youth sports has enabled the Company to understand the risks associated with sports participation, including the potential for injuries during competition and risks arising from different sports, activity formats and participation settings. It also provides insight into safety-related concerns faced by municipalities, schools and parents.

By entering the non-life insurance agency business, Leifras plans to establish a framework that integrates insurance support with its existing service offerings, with the aim of further enhancing its ability to support safe and secure participation in sports.

In addition to providing insurance services in connection with the Company's outsourced school club activity operations, the Company also plans to offer standalone insurance services, including insurance consultation, product explanation, and enrollment support, in response to the needs of municipalities, schools and other organizations nationwide, regardless of whether such organizations use the Company's outsourced school club activity services.

Developing Sports-Focused Insurance Services Leveraging a Membership Base of Approximately 70,000 Members

In the future, the Company plans to explore proprietary insurance products that leverage its approximately 70,000 sports school members and the expertise it has developed in sports environments.

Potential offerings under consideration include comprehensive accident insurance for school club activity participants and sports school members, with features such as coverage for injuries sustained during school club and sports school activities, 24-hour coverage plans, fully online enrollment procedures, and services that extend coverage to members' families.

By combining opportunities to participate in sports with insurance solutions designed to address unexpected incidents, the Company aims to build a new service model that provides greater reassurance for children, families and organizations involved in sports.