NEWS RELEASE
June 29, 2023
To all members of the press

YARUKI Switch Group Holdings Joins TBS Group
Receives Capital Investment from TBS Holdings to Integrate
Educational Services with Media

From left: Naoshi Takahashi, President and CEO, YARUKI Switch
Group Holdings; Takashi Sasaki, President & Representative Director, TBS Holdings

TBS Holdings, Inc. (Head office: Minato-ku, Tokyo; President: Takashi Sasaki;
hereinafter "TBS") and YARUKI Switch Group Holdings Co., Ltd. (Head office:Chuo-ku, Tokyo; President: Naoshi Takahashi; hereinafter "YARUKI Switch
Group HD") are pleased to announce today that YARUKI Switch Group HD has
joined the TBS Group, with TBS obtaining a majority stake in YARUKI SwitchGroup HD.
YARUKI Switch Group HD’s group philosophy is "to find the human treasures ofthe world, providing our full support to allow them to sparkle. To engage themotivation switch of all, and while realizing our full potential, contribute to thecreation of a society in which we may all happily exist." Its operating company,
YARUKI Switch Group Co., Ltd., which provides general educational services
utilizes over 40 years of teaching know-how to offer eight different school brands:
the individual education cram school "School IE®," the English conversation

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school "WinBe®," the "Child Eyes®" preschool classes for intellectual development
and examination preparation, the English pre-school and after-school care "KidsDuo®," the "Ninja 9®" sports program for infants and elementary school students,
the "Kids Duo International®" bilingual kindergartens, "i Kids Star®," and the"HALLO®" programming school. There are currently more than 2,200 schools inJapan and abroad, with more than 130,000 students.
The TBS Brand Promise is "from each moment, a better tomorrow," in an aim tocreate entertaining and inspiring experiences that move hearts and minds. Oneof the key areas of the EDGE strategy, which forms the core of the TBS Group
Vision 2030, is the intellectual training and education business, and the Learning
NEXT Division was newly established in October 2022 to promote it.

Aim of joining the TBS GroupIn an age of volatility, uncertainty, complexity, and ambiguity (VUCA), where the future isdifficult to predict, the "ability to think and create on one’s own" – which we call jibun-ryoku(self-power) – is becoming increasingly important. We also believe that the way of schoolingwill evolve as the world changes, and we feel that the use of various video technologies andbroader and more powerful branding will become more important. By utilizing the knowledge,know-how and assets of both companies through this agreement, we believe that it will become
possible to provide education for the new era in a variety of forms to a wider range of segments
than ever before, with a view to building a new educational platform in the future.
Expected synergies

The growth strategy of YARUKI Switch Group HD is aimed at improving profitability bystrengthening and expanding its operational capabilities of directly managed and franchised
schools. In this regard, we expect that we will further enhance our recognition and brandimage by utilizing the Japan News Network (JNN), owned by TBS, and extend our school
networks nationwide. We also plan to expand the educational content created through directly
managed and franchise operations, which we believe to be accelerated through the cocreation of new video content that utilizes TBS's technology. In addition, TBS's ability todispatch information as a media company is expected to further expand the membership baseof our educational membership platform for parents and students, enabling us to increase thenumber of users and to provide a variety of unprecedented online content and excellent
educational information. For the future, we are also considering overseas expansion ofeducational content, utilizing the networks and business foundations of both companies.

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YARUKI Switch Group HD will further develop its general educational service business andcontribute to providing value to society in a sustainable manner.
The shareholder composition after the conclusion of this agreement is as follows (asof June 29, 2023):

TBS Holdings, Inc.
Sanrio Company, Ltd.
Nomura Real Estate Holdings, Inc.
Link and Motivation Inc.
Nagoya Railroad Co., Ltd.
*TBS plans to additionally acquire all of the shares of YARUKI Switch Group HD held by Link and Motivation Inc. on July 31.

YARUKI Switch Group Holdings Co., Ltd.
Company name:YARUKI Switch Group Holdings Co., Ltd.

Representative:

Naoshi Takahashi, President and CEOURL:

https://www.yarukiswitch-holdings.co.jp/en

Business activities:

As the holding company of YARUKI Switch Group Co., Ltd., thepurpose of the company is to engage in the following businessactivities: management and administration of the individual educationcram schools, English conversation schools, early childhood educationand childcare facilities of YARUKI Switch Group companies and theirfranchise businesses; any and all incidental or related work

Established:

January 2020

Capital:

100 million yen (as of August 2022)

Head office address: Hatchobori Daiichi Seimei Bldg., 2-24-2 Hatchobori, Chuo-ku, Tokyo
TBS Holdings, Inc.
Company name:TBS Holdings, Inc.

Representative:

Takashi Sasaki, President & Representative Director

URL:

https://www.tbsholdings.co.jp/en/

Established:

May 1951

Head office address: 5-3-6 Akasaka, Minato-ku, Tokyo

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For media inquiries regarding this matter:
Corporate Management Division
YARUKI Switch Group Holdings Co., Ltd.
Email: ir@ysg.co.jp
Public Relations Section
YARUKI Switch Group Co., Ltd.
Email: pr@ysg.co.jp

For media inquiries regarding this matter by telephone(common to both companies):
Tel: 03-6845-1203

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