Global Kids Company Corp.

To Our Shareholders and Investors

Since our founding in 2006, our group has been driven by the corporate philosophy of "For the Future of Our Children." This mission has guided our commitment to supporting child-rearing. Today, we operate licensed daycare centers, after-school clubs, and other facilities, primarily across the Tokyo metropolitan area, including Yokohama, where we daily support the growth and learning of over 10,000 children.

The landscape for child-rearing support has been dynamically shifting. While the number of daycare users and facilities consistently rose due to an increase in dual-income households and higher female employment rates, we are now seeing a notable decrease in the number of children on waiting lists. Responding to these changes, the Japanese government established the Children and Families Agency in April 2023. This agency aims to unify child-related policies and prioritize children's welfare under the vision of a "child-first society," taking a comprehensive approach to family challenges. Furthermore, the "Children Future Strategy," approved by the Cabinet in December 2023, includes a significant revision of childcare worker staffing standards—the first in 76 years—and a push for improved compensation for these essential professionals. Following this, the "General Principles for Child-Related Measures" was approved in December 2023, leading to the "Child-First Action Plan 2024" in May 2024. This action plan is groundbreaking as the first unified roadmap outlining concrete initiatives for a wide range of child policies. It encompasses diverse measures such as expanding child allowances, introducing a "universal daycare system," enhancing childcare worker treatment, and promoting ICT integration.

In response to this evolving environment, our group announced our "Management Strategy for Achieving '2030 Triple Trust'" on November 14, 2024. This strategy is designed to realize our vision of "2030 Triple Trust": to become the most trusted partner for our staff, children, and local communities by 2030, serving as crucial social infrastructure for children's growth and learning.
Although, our childcare business will prioritize "ensuring safety and security" above all else,  we also aim to elevate the quality of childcare by introducing the Jena Plan philosophy to all facilities we operate. Additionally, we will strengthen the following key initiatives:

・Boost sales by increasing enrollment rates through enhanced marketing efforts.
・Improve profit margins by optimizing our staff allocation.
・Reduce costs through increased productivity. Beyond these, we plan to expand our scale through strategic M&A, focusing on our primary operational areas: Tokyo and Yokohama.

Regarding our capital strategy, we have achieved a solid foundation in financial health. Moving forward, we will maintain this financial soundness while improving profitability with a keen awareness of our cost of capital. Our goal is to enhance capital efficiency and provide more robust shareholder returns.

By vigorously implementing the "Management Strategy for Achieving '2030 Triple Trust'," we are committed to delivering even more comprehensive child-rearing support services. We aspire to become a leading child-rearing support enterprise that is both indispensable to and highly favored by society. We will actively and boldly pursue innovations that are unprecedented in the often-conservative childcare industry—unique challenges that only our group can undertake. Our aim is to lead the entire sector as the most trusted child-rearing support provider, fulfilling our vital role as a cornerstone of social infrastructure.

We sincerely request the continued unwavering support of our valued shareholders and investors.