Summary of Business Results for the First Quarter Ended June 30, 2024
[Japan GAAP] (Consolidated)
August 13, 2024
Company
JP-HOLDINGS, INC.
Stock Code2749
URL: https://www.jp-holdings. co.jp
Representative
Tohru Sakai, President and Representative Director
Contact
Kenji Zushi, Operating Officer
Expected starting date of dividend payment: Preparation of supplementary financial document: None
Results briefing: None

Listed on the TSE Prime
T E L: +81-52-933-5419（Rounded down to million yen）

1. Consolidated business results for the three months ended June 2024
(April 1, 2024 through June 30, 2024)(1) Consolidated results of operations
Net sales

Operating income(% change from the previous corresponding period)
Net income attributable toOrdinary income
owners of parent

Million yen%
Million yen%
Three months ended Jun. 2024
9,600
7.2
1,398
61.1
Three months ended Jun. 2023
8,956
4.2
868
19.6
(Note) Comprehensive income
Three months ended June 2024: 1,114 million yen (95.8%)
Three months ended June 2023: 569 million yen (21.5%)
Net income
Diluted net income perper share
share
Yen
Yen
12.45
Three months ended Jun. 2024
6.72
Three months ended Jun. 2023

Million yen
1,405
877

%
60.0
18.7

Million yen
1,062
572

%
85.7
18.0

(2) Consolidated financial position
Total assets

Net assets

Million yen
35,175
As of Jun. 30, 2024
36,889As of Mar. 31, 2024
(Reference) Shareholders’ equity
As of June 30, 2024: 16,540 million yen
As of March 31, 2024: 16,108 million yen

Million yen
16,540
16,108

Shareholders’ equity
ratio
%
47.0
43.7

2. Dividends
End of 1Q

Yen
0.00

Annual dividend
End of 3Q
Yen
-

0.00

-

End of 2Q
Yen-

Year ended Mar. 2024
Year ending Mar. 2025
Year ending Mar. 2025 (forecast)(Note) Revisions to dividend forecast for the current quarter: None

Year-end

Total
Yen
8.00

Yen
8.00

9.50

9.50

3．Forecast of consolidated business results for the fiscal year ending March 2025
(April 1, 2024 through March 31, 2025)(% change from the previous corresponding period)
Net sales
Million yen

Operating income%

Million yen

Year ending Mar. 2025
38,5281.8
4,751(Note) Revisions to business forecast for the current quarter: None

Net income attributable toowners of parent

Ordinary income

Net income
per share%

Million yen%

Million yen

%

Yen

3.6

4,778

5.6

3,106

6.0

36.39

*Notes(1) Changes in significant subsidiaries during the period: None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: None: None: None(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of June 30, 2024
87,849,400 shares
As of March 31, 2024
87,849,400 shares②Treasury stock at the end of period
As of June 30, 2024
2,492,069 shares
As of March 31, 2024
2,492,069 shares③Average number of stock during period (quarterly cumulative period)
Three months ended June 2024
85,357,331 shares
Three months ended June 2023
85,151,543 shares*Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public
accountants or an audit firm: None
*Explanation regarding appropriate use of business forecasts and other special instructions∙ Forecasts regarding future performance in this material are based on information currently available to the Company
and certain assumptions that the Company deems to be reasonable at the time this report was prepared. Actual results
may differ significantly from the forecasts due to various factors. For information regarding the assumptions that form
the basis for the business results forecasts and notes about using business forecasts, etc., please refer to “1. Qualitative
Information on Quarterly Financial Results (3) Consolidated Earnings Forecasts” (Page 4).

〇 Table of Contents of the Appendix
1. Qualitative Information on Quarterly Financial Results…………………………………………….… 2(1) Results of Operations……………………………………………………………………………….. 2(2) Financial Position…………………………………………………………………………………… 4(3) Consolidated Earnings Forecasts……………………………………………………………..…...… 4
2. Quarterly Consolidated Financial Statements and Major Notes………………………………….…..… 5(1) Quarterly Consolidated Balance Sheets……………………………………………………………… 5(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income……….…7(3) Notes on Quarterly Consolidated Financial Statements……………………………………………… 9(Notes on going concern assumption)……………………………………………………………….… 9(Notes if there is a significant change in the amount of shareholders' equity)………………………… 9(Note on segment information) ……………………………………………...……………………….… 9(Notes on statements of cash flows) …………………………………………………………………… 9

1

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the first quarter of the current fiscal year, the Japanese economy is recovering moderately, thanks in part to the effects ofvarious policies, despite a pause in the pick-up in private consumption amid improvement in the employment and income situation.
On the other hand, the downturn in overseas economies, such as the impact of the global monetary tightening and the impact of
the stagnation of the Chinese real estate market, is a risk of downward pressure on Japan's economy, and it is necessary to pay
sufficient attention to price increases, the situation surrounding the Middle East region, and changes in financial and capital markets.
As for the environment surrounding the childcare support business to which our group belongs, the government has presented
a "Children's Future Strategy" which outlines concrete contents of "drastic countermeasures against declining birth rates" as acountermeasure against the accelerating declining birthrate. Specifically, in order to develop a structure that enables parents use
childcare facilities with a peace of mind, this fiscal year, the government changed the standard for the number of 4-5 year oldchildren per nursery staffs as an improvement to the standard for the first time in 75 years. In addition, various measures to deal
with the declining birth rate have been gradually implemented, such as securing childcare workers through further improvementof treatment and the introduction of tests of the "Universal Childcare System" to enable all families to use childcare facilities
regardless of parents' employment status.
In addition, the number of children on waiting lists at school clubs is increasing, the development of a childcare environment is
becoming an issue, and the Tokyo Metropolitan Government is taking steps to create new “Tokyo-certified school clubs” topromote the development of an environment conducive to childcare. As such, the social role of childcare support services is
expected to become increasingly important.
In this way, the government and municipalities are promoting various measures to improve the childcare environment andeliminate children on waiting lists at school clubs as measures against the declining birthrate. At the same time, in regions where
the decline in birthrate is accelerating, competition is intensifying to acquire more children. Accordingly, we believe it is necessary
to implement structural reforms aimed at achieving sustainable growth and further expanding profits, and to develop and quickly
monetize new businesses.
In view of the progress of various measures and changes in the external environment, our group is reviewing the figures in themedium-term management plan using the rolling method. In order to further improve and reform our competitive superiority andmanagement foundation, we have continued to strengthen our efforts since the previous fiscal year under the targets of “Achieve
growth and establish a competitive advantage,” “Reform our profit structure,” and “Reform our management base”.
To effectively adapt to the changing social environment, we are deploying the following strategies. Firstly, we aim to "achieve
growth and establish a competitive advantage" by developing new businesses with a focus on medium to long-term growth.
Simultaneously, we are proactively considering M&As to not only expand existing operations but also to venture into new businessdomains. Furthermore, in order to enhance our competitive advantage, we plan to develop and expand learning programs. For
instance, we will offer childcare and after-school programs that incorporate STEAM education, as well as after-school activities
such as English, gymnastics, music, and dance classes. Additionally, the strategy encompasses various initiatives, including theoperation of a "bilingual nursery school" with English native teachers for differentiation, “Montessori-method education nurseryschool”, establishing a comprehensive childcare support system for infants, toddlers, and school-age children, and adopting adominant strategy through collaboration between nursery schools, after-school clubs, and children’s clubs, aiming to double thecurrent number of after-school clubs and children’s clubs to 200 facilities through proactive expansion efforts, in order to strongly
promote our aim for "creating facilities that would continue to be selected by customers". In terms of new businesses, we are
aggressively promoting early business development and profitability. For example, we are expanding our human resources
placement and dispatch staffing business for specialists at Japan and abroad, expanding our real estate business in collaboration
with various businesses, and developing our overseas business mainly in Southeast Asia.
Regarding "reform our profit structure," we are reassessing our business structure. We are addressing redundant tasks,
streamlining operations through ICT integration, optimizing staffing, and achieving operational efficiency through the rectificationof inefficient operations and processes using data utilization. We are also committed to reducing indirect costs and further
improving our operations through business process reforms and system implementations.
As for the “reform our management base,” the key to our business is people. Therefore, we will enhance our personnel educationand training structure. At the same time, we will develop human resources and improve employee engagement to lead to a change
in awareness. Moreover, we are working to revitalize our organization by enhancing our human resources strategy (expanding
training and renewing our corporate culture), strengthening Group governance and establishing a management system.
In addition, with regard to the business alliance with Duskin Co., Ltd., we established the Collaboration Review Committee.
Through the effective utilization of the management resources and know-how possessed by both companies and mutual
cooperation, we are building measures to maximize the corporate value of both companies, create new services for solving social
problems and individual problems for customers and guardians, and realize an affluent lifestyle for customers.
As part of our Group's growth strategy, we will actively pursue M&A to create new businesses, achieve early profitability, andexpand existing businesses. In this way, we are striving for sustainable growth while realizing our Group management philosophy
of "Through child care support, we will contribute to creating smiles for everyone."2

In the first quarter of the fiscal year ending March 31, 2025, we established 2 nursery schools (1 of which was converted froma Tokyo-certified nursery school to a certified nursery school), 4 childcare centers that were converted from certified nurseryschools, 17 school clubs and children's houses, and 2 community centers. We have established a total of 20 facilities, excluding
those that were converted to certified nursery schools and childcare centers, and have promoted them as planned.
We have also been newly commissioned to provide “Club Business Coordination Services” related to childcare for Shibuya-ku
After-school Club, and will provide various services by utilizing our Group's educational know-how in English, gymnastics, music,
and dance.
(Nursery School)(*1)
Appy Azabu
Asc Nishi-kokubunji Nursery School(Apr. 1, 2024)(Apr. 1, 2024)(Childcare Center)(*2)
Asc Kodurushinden Childcare Center
Asc Nagamachiminami Childcare Center
Asc Gotenhama Childcare Center
Asc Wani Childcare Center(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(School Club/Children's House)
Ukima Elementary School Club No.1
Ukima Elementary School Club No.2
Ukima Elementary School Club No.3
Ukima Elementary School Club No.4
Koto Kids’Club Edagawa
Negishi After School Kids’ Club
Negishi Kids’Club
Matsuba Elementary School After School Kids’ Club
Nezu Chidcare Room
Mejirodai Chidcare Room No.2
Ichi-sho School Club A
Ichi-sho School Club B
Kitano-sho School Club A
Kitano-sho School Club B
Kitano-sho School Club Annex
Nezu Children’s House
Mejirodai Children’s House No.2

(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Community Center)
Nezu Community Center
Majirodai Community Center(Apr. 1, 2024)(Apr. 1, 2024)(Bilingual Nursery School)
The Company changed licensed nursery schools and Tokyo licensed nursery schools to bilingual nursery schools, which isstaffed by native English-speaking teachers.
Asc Bilingual Nursery School Ningyocho Eki-mae (formerly Asc Ningyocho Eki-mae Nursery School) (Apr. 1, 2024)
Asc Bilingual Nursery School Yakumo (formerly Asc Yakumo Nursery School)(Apr. 1, 2024)
Asc Bilingual Nursery School Takatsu (formerly Asc Takatsu Nursery School)(Apr. 1, 2024)
Asc Bilingual Nursery School Kamikodanaka (formerly Asc Kamikodanaka Nursery School)(Apr. 1, 2024)
Asc Bilingual Nursery School Mukaigawara (formerly Asc Mukaigawara Nursery School)(Apr. 1, 2024)

3

(Other Contracted Business)
Shibuya-ku After School Club "Club Business Coordination" Services(April 1, 2024)*1: On April 1, 2024, Asc Nishi-kokubunji Nursery School was converted from a Tokyo-certified nursery school to a licensed
nursery school.
*2: On April 1, 2024, the following certified nursery schools were converted to certified childcare centers: Asc Kodurushinden
Childcare Center, Asc Nagamachiminami Childcare Center, Asc Gotenhama Childcare Center, Asc Wani Childcare Center.
*3: As of March 31, 2024, Asc Bilingual Nursery School Eifuku, a Tokyo-certified nursery school, was closed. In addition,
following school clubs were withdrawn as of March 31, 2024 due to the expiration of the contract: Predy Toyomi, Taisho
Elementary School After School Kids’ Club, Wakuwaku Yanagida Hiroba, Yanagida Midori Club No.1, and Yanagida Midori
Club No.2.
As a result, the Group came to have 205 nursery schools, 4 childcare centers, 96 school clubs, 13 children's houses, and 2
community centers, making a total of 320 childcare facilities as of June 30, 2024.
As a result, the Group’s consolidated net sales were 9,600 million yen (up 7.2% year on year), operating income was 1,398
million yen (up 61.1% year on year), ordinary income was 1,405 million yen (up 60.0% year on year), and net income attributableto owners of parent was 1,062 million yen (up 85.7% year on year).
Net sales increased by 7.2% year on year. This was due to an increase in the number of enrolled children during the period, asa result of efforts to "creating facilities that would continue to be selected by customers" such as the expansion of the earlychildhood learning program, the opening of new facilities and contracts, and the change in the number of children per nursery staff(revision of standards for assigning nursery staffs for 4-5 year old children in care) implemented as drastic countermeasures against
declining birth rates.
In terms of operating income and ordinary income, with regard to the increase in the number of children through various
measures aimed at "creating facilities that would continue to be selected by customers", the response to the maximization ofsubsidies and the change in the number of children per nursery staff (revision of standards for assigning nursery staffs for 4-5 year
old children in care) implemented as drastic countermeasures against declining birth rates, we had already increased the numberof nursery staffs assigned to improve quality of childcare services, and the impact on our business is significant. As a result,operating income increased by 61.1% year on year and ordinary income increased by 60.0% year on year.
Net income attributable to owners of parent increased significantly by 85.7% year on year. This was mainly due to the opening
and entrusted new facilities, an increase in the number of enrolled children and change in the number of children per nursery staff,
an increase in profits through various measures to maximize subsidies, and the recording of compensation in extraordinary income
related to the transfer of the head office in line with the redevelopment of the area where the head office is located, as describedabove.

(2) Financial Position
As for the financial position at the end of the first quarter of the current fiscal year, the total assets amounted to 35,175 million
yen (down 1,713 million yen from the end of the previous fiscal year).
Current assets were 24,060 million yen (down 1,313 million yen), mainly due to decreases of 870 million yen in accounts
receivable-other and 488 million yen in cash and deposits.
Non-current assets totaled 11,115 million yen (down 399 million yen). This was mainly due to decreases of 285 million yen indeferred tax assets and 118 million yen in buildings and structures.
Total liabilities amounted to 18,635 million yen (down 2,145 million yen).
Current liabilities were 9,170 million yen (down 1,238 million yen), mainly due to an increase in other of 188 million yen, anddecreases of 805 million yen in income taxes payable, 413 million yen in provision for bonuses, and 196 million yen in otherliabilities.
Non-current liabilities totaled 9,465 million yen (down 906 million yen). This was mainly due to a decrease of 920 million yen
in long- term loans payable.
Total net assets at the end of the first quarter of the current fiscal year was 16,540 million yen (up 432 million yen). This was
mainly due to an increase of 379 million yen in retained earnings.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 13, 2024, but actual results
may be different from the forecast according to the changes in business situations, etc.
If there are any changes, the Company will disclose them properly.

42. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Thousand yen)Previous Fiscal Year
(March 31, 2024)

Current First Quarter(June 30, 2024)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade

20,944,481
117,374

20,456,000
106,755

Inventories
Accounts receivable - other

46,9553,453,371

33,3612,582,760

812,495-411

881,881-251

25,374,267

24,060,508

12,148,433

12,102,751

Accumulated depreciation and impairment-8,131,104-8,203,829

Buildings and structures, net

4,017,329

3,898,922

OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

4,442

4,442

Accumulated depreciation-1,305-1,570Machinery, equipment and vehicles, net

3,137

2,872

1,503,559

1,525,435

Accumulated depreciation and impairment-987,460-1,023,148

Tools, furniture and fixtures, net

516,099502,287

129,529

129,529

4,666,095

4,533,611

Goodwill
Others75,96429,70668,36828,429Total intangible assets

105,671

96,798Tools, furniture and fixtures

Land
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

473,597

557,443

Long-term loans receivable
Guarantee deposits

2,579,732
1,814,755

2,525,925
1,825,579

Deferred tax assets
Others1,489,173
392,729

1,203,426
376,546-6,510-4,041

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

6,743,477

6,484,882

11,515,244

11,115,291

36,889,511

35,175,800

(Thousand yen)Previous Fiscal Year
(March 31, 2024)

Current First Quarter(June 30, 2024)

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of long-term loans payable

196,679
3,657,330

144,332
3,657,330

Accounts payable – other
Income taxes payable

2,893,907
1,093,442

2,697,484
288,111

Accrued consumption taxes
Provision for bonuses

65,639891,300

112,114477,640

Asset retirement obligation
Others

6,560
1,604,392

1,793,292

Total current liabilities

10,409,252

9,170,304

Long-term borrowings
Retirement benefit liability

8,761,017
1,010,833

7,840,069
1,024,441

Asset retirement obligation
Others597,4392,850

598,145
2,713

Total non-current liabilities

10,372,140

9,465,369

20,781,392

18,635,674

Shareholders’ equity
Share capital

1,603,955

1,603,955

Capital surplus
Retained earnings

1,482,693
13,840,537

1,482,693
14,220,205

Non-current liabilities

Total liabilities
Net assets

Treasury shares-724,381-724,381

16,202,804

16,582,471

Accumulated other comprehensive income
Valuation difference on available-for- salesecurities
Deferred gains or losses on ledges-94,396-44,029

1,638

2,141

Remeasurements of defined benefit plans-1,926-458

Total shareholders’ equity

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6-94,684-42,345

16,108,119

16,540,125

36,889,511

35,175,800

(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income
Quarterly Consolidated Statement of Income Current
First Quarter

Net sales
Cost of sales

Previous First Quarter(April 1, 2023
- June 30, 2023)
8,956,299
7,412,651(Thousand yen)
Current First Quarter(April 1, 2024
- June 30, 2024)
9,600,153
7,561,363

Gross profit

1,543,647

2,038,790

Selling, general and administrative expenses

675,299

639,803

Operating income

868,347

1,398,987

Non-operating income
Interest income

18,236

18,962Others

10,1604,225

Total non-operating income

28,39723,188Interest expenses
Others

18,208540

14,3582,641

Total non-operating expenses

18,74816,999877,996

1,405,175

Compensation for relocation of head office-201,630

Total extraordinary income-

201,630

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary loss

-

91

0

4,259

0

4,350

Income before income taxes and others

877,996

1,602,455

Income taxes-current
Income taxes-deferred

229,769
75,913

277,383
262,546

Total income taxes

305,682539,929

Net income

572,3141,062,525

Net income attributable to owners of parent

572,3141,062,5257

[Quarterly Consolidated Statement of Comprehensive Income][First Quarter]
Previous First Quarter(April 1, 2023
- June 30, 2023)
572,314(Thousand yen)
Current First Quarter(April 1, 2024
- June 30, 2024)
1,062,525

Valuation difference on available-for- sale securities
Deferred gains or losses on ledges-2,615-1,16150,367502

Remeasurements of defined benefit plans, net of tax

752

1,468

Net income
Total accumulated other comprehensive income-3,024

52,339Comprehensive income

Total other comprehensive income

569,289

1,114,865

BreakdownComprehensive income attributable to owners of parent

569,289

1,114,8658

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)None applicable.
(Notes if there is a significant change in the amount of shareholders' equity)
None applicable.
(Notes on segment information)(Segment Information)
I. Previous First Quarter (April 1, 2023 – June 30, 2023)
As our group operates within one single segment (Childcare Support Business), we have omitted the descriptions as such.
II. Current First Quarter (April 1, 2024 – June 30, 2024)
The main business of our group is the Childcare Support Business. we have omitted the descriptions since other businesssegments are immaterial.
(Notes on statements of cash flows)
Quarterly consolidated statements of cash flows for the first quarter of the current fiscal year have not been prepared. Depreciation
and amortization (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the firstquarter are as follows.

Depreciation and amortization

Previous First Quarter(April 1, 2023
- June 30, 2023)

Current First Quarter(April 1, 2024
- June 30, 2024

168,350 thousand yen

168,411 thousand yen

7,596 thousand yen

7,596 thousand yen

Amortization of goodwill

9