Notice Regarding Consolidation of Back-Office Functions of 15 Companies within the SHIFT Group
through an Absorption-Type Company Split

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) hereby announces that it has resolved at a Board of Directors meeting held today to carry out an absorption-type company split targeting the back-office functions of 15 companies within the SHIFT Group^* (hereinafter, the “Reorganization”), mainly those providing system development services. Through the Reorganization, the SHIFT Group will advance the centralization of shared back-office services and further strengthen and streamline group-wide back-office functions leveraging AI.

Please note that, as the Reorganization constitutes a tax-qualified, simplified absorption-type company split without consideration involving consolidated subsidiaries, certain disclosure items and details have been omitted from this announcement in accordance with applicable requirements.

* 15 companies

1. Purpose of the Reorganization
Since launching its software testing business in 2009, SHIFT has developed its operations with a core focus on software quality assurance, serving a wide range of industries, from enterprise to entertainment. Beginning around 2019, SHIFT accelerated its M&A activities and currently oversees a total of 40 group companies (as of April 2026). As the SHIFT Group, we have continued to expand our business by providing integrated services ranging from planning and design to system development, testing, and related services.

In addition, SHIFT has been accelerating its transformation into an “AI-driven company.” Under “SHIFT 3000,” which targets net sales of ¥300 billion, we aim to achieve further business growth as an AI-driven company by strengthening “With-AI^*1” initiatives and pursuing discontinuous growth through “Native-AI^*2.”

In particular, “AI Modernization,” one of the pillars of “Native-AI,” has generated orders totaling ¥2.55 billion within approximately two months of launch, and is expected to continue achieving significant non-linear growth.

With respect to “AI BPaaS,” another key driver of “Native-AI” alongside “AI Modernization,” as reported in our FY2026 Q2 financial results, we are promoting the following four steps; 1. AI transformation of SHIFT standalone back-office: 2. Shared office/AI transformation across 40 group companies: 3. Transforming back-office into profit center: and 4. Transforming existing BPaaS with AI. The Reorganization corresponds to Step 2 above.

At SHIFT on a standalone basis, we have in principle already paused new hiring for back-office positions, broken down operations into 892 individual tasks, and leveraged AI agents to achieve a reduction in man-hours as of April 2026. We are beginning to see tangible results from the “AI transformation of SHIFT’s standalone back-office functions.”

Going forward, including through this Reorganization, we will continue to advance: 2. Shared office/AI transformation across 40 group companies: 3. Transforming back-office into profit center: and 4. Transforming existing BPaaS with AI.

This Reorganization primarily targets back-office functions such as human resources and treasury at 15 companies within the SHIFT Group, mainly those providing system development services.

Through the Reorganization, the SHIFT Group will further accelerate its transformation into an AI-driven company and, as an integrated group, strive to enhance corporate value.

*1 Enhancing efficiency and added value in existing development, testing, and consulting services through the utilization of AI.
*2 Services newly enabled by AI, distinct from traditional business offerings.

For further details, please see here.