Notice Regarding Change in Reportable Segments

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo; Masaru Tange, CEO and Representative Director) announced that its Board of Directors, at a meeting held today, resolved to change its reportable segments starting from the fourth quarter of the fiscal year ending August 31, 2026 (FY2026-Q4), as detailed below.

1. Reason for Change in Reportable Segments
Since launching its software testing business in 2009, SHIFT has developed its business with a primary focus on software quality assurance across a wide range of industries, from enterprise to entertainment. Building on the expertise cultivated through its quality assurance services, SHIFT subsequently expanded its service offerings and has established an integrated structure across the Group to provide comprehensive services spanning planning and design through development, testing, and related services.

Beginning in 2026, SHIFT initiated its full-scale transformation into an AI Company. Under “SHIFT 3000,” its growth strategy targeting net sales of 300 billion yen, SHIFT is driving both the enhancement of “With AI”*1, which incorporates AI into existing services, and discontinuous growth through “Native AI”*2, which is built on AI as its foundation. In line with this transformation, SHIFT has expanded the value it provides beyond traditional software testing and development to include new AI-centered services such as “AI Modernization” and “AI BPaaS.” These initiatives represent a natural extension of the SHIFT Group’s consistent value proposition: supporting customers’ business transformation in an end-to-end manner, from upstream consulting through implementation and ongoing operations.
Furthermore, as announced in October 2025, SHIFT established a fund as an investment vehicle to accelerate the Group’s growth. Through the utilization of external capital, SHIFT intends to pursue M&A and group management in ways that differ from its conventional approach.

In light of the expansion of its service offerings and to more appropriately reflect the value provided to customers, while enhancing the accuracy of management control and performance evaluation, SHIFT has been considering changes to its reportable segments since the beginning of the fiscal year. Specifically, SHIFT has reviewed its segment structure from one based primarily on individual group companies to one based on the services provided.

At the same time, SHIFT has been operating performance management under the new framework since the beginning of the fiscal year and has evaluated its effectiveness and degree of integration. As a result, having confirmed that the new framework appropriately reflects the actual state of management control and performance evaluation, SHIFT has decided to change its reportable segments starting with its fourth-quarter and full-year financial results announcements.

*1 Projects that improve efficiency and add value by utilizing AI in the provision of existing consulting, development, testing services. These are human-based projects where AI is used to streamline operations.
*2 Unlike conventional businesses, these projects are AI-based and premise only partial human involvement. This includes services that can be newly provided through AI.

2. Overview of the Change
■ Previous Reportable Segments (Until FY2026-Q3)

■ New Reportable Segments (From FY2026-Q4)

(Reference) Correlation Chart

3. Timing of Change
SHIFT will report under the new segments starting from the FY2026-Q4 earnings announcement, scheduled for October 15, 2026.