Prime Market（2749）

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

JP-HOLDINGS, INC.

Financial Results for Fiscal Yearending March 2023

FY3/23

INDEX

１

FY3/23 Results2Long-Term Management Vision/
Medium-term Management Plan

3

FY3/24 Forecast

４

APPENDIX© 2023 JP-HOLDINGS, INC.

2

Every activity is for children’s smiles

Leading company in the child-raising support business
JP Holdings Group is a leading company in the child-raising support business, and operates
childcare support facilities, including nursery schools, school clubs, and children’s houses.
JP Holdings Group was founded in 1993, and started childcare business by establishing a day-care center for childrenof our employees so that they can work without worry. As joint-stock corporations were allowed to do nursery businessin 2000, we first spread safe, reliable childcare services nationwide, while being supported by various people.
Group companies include Japan Nursery Service Inc., which operates childcare support facilities such as nurseryschools, school clubs, and children’s houses nationwide, J Kitchen Inc., which cooks meals for nursery schools, andJapan Nursery Institute for General Research Inc., which offers classes in English, gymnastics, and eurhythmics forchildcare support facilities, plans and sells childcare-related goods, conducts training and research about childcare
and support for development and support business by visiting nursery schools, and operates the child-rearing
assistance platform “codomel.” These subsidiaries are managed and supervised by JP Holdings, Inc.

3

Outline of theBusiness of
JP-Holdings

Outline of the Business of JP-Holdings

We operate the childcare support
business in an integrated manner.

Operation of nursery schools, school clubs,
and children’s houses
Operating 304 facilities around Japan(※on April 1, 2023)

JP-Holdings
Business administration/development(new and existing businesses)

Japan Nursery Service

日本保育サービス
Operation of nurseryGroup purchase
Sale of childcare goods
Development of groupfacilities

schools, school clubs,
and children’s houses

Japan Nursery Institutefor General ResearchSale of childcare
goods

J Kitchen

JP-Holdings

Cooking of lunches
and advisory

Cooking of lunches(Our company andother companies)
Advisory

Childcare support business taking
full advantage of synergy amonggroup companies

Japan Nursery Institutefor General Research

Developmentof programsfor children

Japan Nursery Institutefor General ResearchTraining andresearch

Training business
BPO service
Support business byvisiting nursery schools

Japan Nursery Institutefor General Research

Development and operation of early
Platform
Platform businesschildhood learning programs
Overseas business
English, exercise, eurhythmics, danceSupport for development※J Cast Inc. and J Planning Sale Inc. was merged into Japan Nursery Institute for General Research Inc. on January 1, 2023.
© 2023 JP-HOLDINGS, INC.

4

Our Management
Philosophy andCorporate Message

Our Management Philosophy and Corporate Message●To renew our management philosophy and operational philosophy, and produce a new corporate message●Under the new philosophies, we will improve our child-raising support business based on the cooperation
with local communities.

JP HoldingsGroup’s System
Management philosophy

Corporate message

Operational philosophy
Childcare philosophy andchild-raising philosophy

To contribute to the development of a society filled withsmiles through childcare support
Every activity is for children’s smiles
To conduct childcare and child-rearing while giving top priority
to safety and reliability
To put importance on daily childcare, so that our facilities will be
remembered foreverTo bring a smile to each child, while our staff can enjoy their jobs
To contribute to society by operating facilities that are connected
to and support local communities
To always offer child-raising support demanded by the times

Childcarephilosophy
To nurture the skills to survive tomorrow

Child-rearing
philosophy
To develop the ability to become an ideal self
© 2023 JP-HOLDINGS, INC.

5

1

FY3/23 Results

6FY3/23
Results

Summary of Business Results for FY3/23

Increased sales and profit through the establishment and commissioned operation of new facilities, efforts to develop nursery schools andfacilities that would be selected by customers, and cost reduction measures.
Net sales: Although net sales exceeded the previous year's level due to the opening of new facilities and the undertaking of new facilities, but fell slightly below the forecast
due to a decrease in the number of children during the period. This decrease was caused by parents refraining from leaving their children at a nursery at the beginning of theperiod due to the spread of COVID-19.
Operating income: Despite the increase in expenses due to higher raw material prices and electricity rates, we achieved more operating income than in the previous term andforecasts due to efforts to control expenses. We have established a highly profitable structure with an operating income margin of over 10%.
Net income: Net income significantly exceeded the previous year’s level and the forecast due to an increase in extraordinary income from the sale of fixed assets such as landand buildings.

FY3/22
Unit: million yen

FY3/23

Resutls

Rate of change comparedto the previous term

Resutls

Change compared to the Rate of change compared to Change compared to theprevious term
the revised forecast
revised forecast

Net sales

34,37335,507

3.3%

1,134

Gross profit

6,321

6,397

1.2%

76

18.4%

18.0%

-2.0%

-0.4%

2,976

2,729

-8.3%

-246

8.7%

7.7%

-11.2%

-1.0%

3,344

3,667

9.6%

9.7%

10.3%

3,358

Gross profit margin
SG&A
SG&A ratio
Operating income
Operating income margin
Ordinary income

Ordinary income margin
Extraordinary income
Extraordinary loss
Net income
Net income margin

Revised forecast

-0.4%

-133

35,640

322

0.9%

34

3,633

6.2%

0.6%

1.3%

0.1%

10.2%

3,745

11.5%

386

0.9%

34

3,711

9.8%

10.5%

8.0%

0.8%

1.3%

0.1%

10.4%

183

376

105.1%

192

47

58

24.7%

11

2,279

2,698

18.4%

418

5.1%

132

2,566

6.6%

7.6%

14.6%

1.0%

5.5%

0.4%

7.2%

*1: Net income represents “Net income attributable to owners of parent.”*2: The figures were rounded off to the nearest million yen.
© 2023 JP-HOLDINGS, INC.

7

FY3/23
Results

FY3/23 Factors for Changes in Net Sales

Net sales

At the beginning of the term, COVID-19 made parents refrain from leaving their children at a nursery as a countermeasureagainst the pandemic. However, we implemented various measures aimed at opening new facilities, undertaking theoperation of new facilities, and developing nursery schools and facilities that would be selected by customers. These
measures increased sales from the previous year. As a result, we achieved record-high sales.

973

34,373

-333

458
-40

Decreasedue to theclosure offacilities

Net
sales

Results for
FY3/22

Decrease incommissioned
kitchen operation

Increase insubsidies

Establishmentof new
facilities andundertake new
tasks

76

35,507

Increase incompany
housing
subsidies,
photo sales, etc.

Net
sales

Results for
FY3/23(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

8

FY3/23
Results

FY3/23 Factors for Changes in Operating Income

OperatingincomeDespite a decrease in the number of children due to parents refraining from leaving their children at a nursery as acountermeasure against the COVID-19 pandemic and an increase in expenses due to higher costs of procured materials andutilities, we increased net sales through the establishment and commissioned operation of new facilities, as well as various
measures. In addition, cost reduction was achieved through efficient operation by reshuffling personnel at each facility, and theprevious year's special expenses were not incurred this year. These factors contributed to increased profits compared to theprevious year, and we achieved record-high profit.

-246
76

3,344

OperatingincomeResults for
FY3/22Gross profit
Despite the increase inprocurement costs and utility
expenses, gross profit
increased through increased
sales from the opening of
new facilities andundertaking of the operationof new facilities as well as
cost control by reducing
expenses such as personnel
reshuffling

3,667

SG&A
Efficient operating structure,and control of SG&A throughreduction of various costs

OperatingincomeResults for
FY3/23(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

9

FY3/23
Results

FY3/23 Factors for Changes in Ordinary Income

Ordinary
incomeAlong with the increase in net sales, efficient operations, cost reduction, and an absence ofexpenses due to special factors in the previous term, ordinary income grew year on year, hittinga record high.

322

3,358

Ordinary
incomeResults for
FY3/22

OperatingincomeGrowth of operating
income thanks to thecurtailment of costs as wellas the sales growththrough the opening of
new facilities and somemeasures559
Increase in
non-operating income

3,745

Increase in
non-operating expenses

Ordinary
incomeResults for
FY3/23(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

10

FY3/23
Results

FY3/23 Factors for Changes in Net Income Attributable to Owners of Parent

Net income
attributable toowners ofparent

It grew year on year, hitting a record high. This was due to a significant increase in ordinary income, which waspartly a result of the growth in sales and cost reduction measures resulting from the establishment of an
efficient operating structure. There was also an absence in expenses due to special factors in the previous
term. Furthermore, there was an increase in extraordinary income from the sale of fixed assets for the
improvement in asset efficiency.

192

11

149

2,698

Rise inextraordinary loss
386

Ordinary income

2,279
Net income
attributable toowners ofparentResults for
FY3/22

Rise in ordinary
incomeRise inextraordinary
income(sold fixed assets)

Increase inincome taxes

Net income
attributable toowners ofparentResults for
FY3/23(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

11

FY3/23
Results

FY3/23 Factors for Changes in Balance Sheet

Increase in shareholders equity ratio due to higher earnings and repayment long-term loans-payable

Financial condition

Liabilities, Net Assets, Shareholders Equity Ratio

End of March 2023 *( ) = Difference with the end of March 2022

Liabilities

Net assets

Liabilities

Assets35,694million yen(1,419million yen)

22,110million yen(-188million yen)

Net assets
13,584million yen(+1,608million yen)

End of Mar. 2022

End of Mar. 2022

Current assets

20,931

23,613Fixed assets

13,34312,081

Total assets

34,27435,694Current liabilities

7,891

8,294

Fixed liabilities

14,407

13,816

Total liabilities

22,29922,110Total net assets

11,975

13,584

million yen

22,299 million yen－ ¥－ Equity Ratio (%)

22,110million yen
38.1

34.9
11,975 million yen

13,584 million yen

End of Mar. 2022

End of Mar. 2023

Cash and deposits
19,330 million yen
Inventory assets
55 million yen
Accounts receivable-other
3,263 million yen
Buildings and structures
12,024million yen

Current portion of long-term loans-payable
Accounts payable
Income taxes payable
Long-term loans payable

3,654 million yen
1,681 million yen
433 million yen
12,226 million yen

Retained earnings
Accumulated other comprehensive income

11,422 million yen-114 million yen(Figures are rounded down to the nearest million yen, and the equity ratio is rounded off to the nearest first decimal point place.)© 2023 JP-HOLDINGS, INC.

12

FY3/232023年3月期業績
Results

FY3/23 Balance Sheet
End of Mar. 2022
(million yen)

Total current assets

End of Mar. 2023
(million yen)

Change(million yen)

20,931

23,613

2,681

17,296
2,708

19,330
3,263

2,034
554

13,34312,081-1,261

5,734
174
7,434

4,984
146
6,950

-749
-28
-483

Total assets

34,27435,694

1,419

Total current liabilities

7,891
3,113
1,561

8,294
3,654
1,681

402
541
119

14,407

13,816-591

12,816

12,226-590

Total liabilities

22,29922,110-188

Total net assets

11,975

13,584

1,608

Total liabilities and net assets

34,27435,694

1,419(Cash and deposits)(Accounts receivable-other)

Total fixed assets(Total tangible fixed assets)(Total intangible fixed assets)(Total investments and other assets)(Current portion of long-term loans-payable)(Accounts payable)

Total fixed liabilities(Long-term loans-payable)(Rounded down to the nearest million yen. The equity ratio is rounded to the first decimal place.)© 2023 JP-HOLDINGS, INC.

13

FY3/232023年3月期業績
Results

FY3/23 Statement of Cash Flows

Operating CF: An increase in pretax profit, an increase in accounts receivable, and an increase in income taxes or refunds.
Investing CF: Sale of tangible fixed assets and acquisition of tangible fixed assets for opening new facilities, etc.
Financing CF: Expenses related to the purchase of treasury stock.

Unit: million yen

FY3/23

ChangeFY3/23

Cash flows fromoperating activities

3,884

2,735

-1,149Cash flows frominvesting activities

413

411

-1

Free cash flow

4,297

3,146

-1,151

Cash flows fromfinancing activities

1,978-1,112-3,091

Cash and cash
equivalents at end of
period17,296

19,3302,034(Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

14

FY3/23 Forecast

15

FY3/23 Forecast

Forecast for FY 3/23 (Difference)

Net sales fell below the forecast due to a decline in the number of children resulting from parents refraining fromleaving their children at a nursery due to the COVID-19 pandemic. However, profits exceeded the revised forecast
due to improved earnings at existing facilities and extraordinary income from the sale of fixed assets (land andbuildings).
Unit: million yen

Initial fullyear forecast
for FY3/23

Results for
FY3/22

Revised fullyear forecast
for FY3/23

Results for
FY3/23

Change from therevised forecast% change fromthe revised
forecast

34,37335,64035,64035,507

-133

-0.4%

Operating income

3,344

3,560

3,633

3,667

34

0.9%

Ordinary income

3,358

3,580

3,711

3,745

34

0.9%

Net income attributable to ownersof parent

2,279

2,325

2,566

2,698

132

5.1%

Net income per share (yen)

26.06

26.58

29.64

31.18

1.54

5.2%

4.5

6.0

6.0

6.0

0

100%

Expected opening of nurseryschool (school)

3

2

2

2

0

100%

Expected consignment of school
clubs and children’s houses(facility)

8

11

11

13

2

18.2%

Net sales

Dividend per share (yen)(Unit: million yen/ Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

16

FY3/23 Dividend
Forecast

Dividend forecast for FY 3/23

⦿ Dividend policy

・Regarding profit sharing, our company pays dividends while securing internal
reserve required for future business and fortification of our management structure.
FY 3/23, in light of the impact of COVID-19 and price hikes, and because we celebrated our 30th
anniversary at the end of March 2022, we will pay an ordinary dividend of 5 yen and a commemorative
dividend of 1 yen for the 30th anniversary of our founding, for a total of 6 yen.

¥6.0

¥4.50

Ordinary
dividend
5.0 yenCommemorative
dividend
1.0 yen

¥3.90

¥3.90

ratio
32.7%

Payoutratio
30.４%

Payoutratio
63.4%

Payoutratio
17.3%

Payoutratio
19.2%

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23(Planed)¥3.70
Payout* The term-end dividend for FY 3/23 is the dividend per share approved at the 31th annual meeting of shareholders.
© 2023 JP-HOLDINGS, INC.

17

FY3/23
FY
3/23
SecondQuarter
StatusofResults
Facilities

New Openings For FY3/23

No. of New Openings
on April 1, 2022
Nursery Schools: 2
School Clubs: 11
on June 1, 2022
School Clubs: 1
on January 1, 2023
Children's House: 1

No. of Facilities Operated as of the
End of March 2023
Nursery Schools: 209
School Clubs: 89Children’s houses: 11
Total: 309

Total: 15
1: “Mitaka City Part-time Childcare Center Hinata” began
operation on May 1, 2022.
2: As of March 31, 2022, the Company closed Tokyo
Licensed Nursery Schools named Asc Itabashi-honcho
Nursery School, Asc Shiodome Nursery School, Asc
Takadanobaba Nursery School, Asc Yanokuchi Nursery
School.
In addition, due to the expiration of the contract, the Company
withdrew from school clubs named Rinsen Elementary School
After School Club, Hiroo Elementary School After School Club,
Sarugaku Elementary School After School Club, and achildren's house named Fukuro Children's House on March
31, 2022.

Tokyo:
1 licensed nursery school・Asc Musashi-Koganei Minamiguchi Nursery School
1 non-licensed nursery school・ Mitaka City Flexible Childcare Center Hinata

Tokyo:
12 school clubs and children’s houses
・Takenotsuka School Club・Takaban Elementary School Club・ Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 1
・ Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 2・ Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 3・ Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 1
・ Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 2・ Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 3・ Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 1
・ Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 2・ Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 3
Saitama:
1 children’s house
・Soka City Matsubara Children Exchange Center “miraton”© 2023 JP-HOLDINGS, INC.

18

FY 3/23
No.
of Facilities
Operated
asOperatedof the Endas
ofof
June
No. ofFacilities
the2022End of March 2023
Status ofFacilities
No.
of Facilities
Operated
byOperated
Region by Region
No. ofFacilities

Operate 309 facilities as of the End of March 2023

TohokuHokkaido

Licensed nurseryschools: 11

Kanto

Kinki

Licensed nurseryschools: 9
KyushuOkinawa

Licensed nurseryschools: 5
Company-led
nursery school: 1

Licensed nurseryschools: 3

Chubu

Licensed nurseryschools: 9
School clubs: 3
Children’s houses: 6

Licensed nursery schools: 157
Non-licensed nursery schools: 9
Other non-licensed nursery schools: 5
School clubs: 86Children’s houses: 5

209 nursery schools, 89 school clubs, 11 children’s houses© 2023 JP-HOLDINGS, INC.

19

2

Long-Term Management Vision/
Medium-term Management Plan

20

Review of the Medium-Term
Management Plan

21

Status of theMedium-Term
Management Plan

Status of the Medium-Term Management Plan
Significant profit improvement over the last 3 years

We will review the staffing at nursery schools and facilities, take steps to maximize subsidies, conduct systemization to improve
operational efficiency, review operations and eliminate unnecessary tasks for realizing a compact head office, and significantly improve
profitability through the restructuring of our group’s operations.
(From FY 3/19)

Net sales: Up 20%
Ordinary income: Up 95%<Results>(Unit: million yen)

FY 3/23(Unit: million yen)

(From FY 3/19)

FY 3/19

Turning into a profitable structure in 3 years

Results for FY3/19.
Net sales

Results for FY3/20.
OperatingincomeResults for FY3/21.
Ordinary
incomeResults for FY3/22.

Results for FY3/23.

Net income attributable to owners of parent© 2023 JP-HOLDINGS, INC.

22

Status of theMedium-Term
Management Plan

Evaluation of the Medium-Term Management Plan Set at the Beginning of the Fiscal Year

23

Profitability, business restructuring, operational efficiency, and growth strategies were achieved as planned.
Stock price has risen thanks to measures such as the acquisition of treasury stocks.

Item

OutlineEvaluation

Establishment of the management foundation and implementation of growth strategies

Management goalAiming to develop “nursery schools and facilities that would be selected” by guardians, municipalities, training schools, andemployees

Business goals for FY 3/24

Priority challenges

Strengthening of the management foundation and improvement in revenues

Aiming to achieve an ordinary income margin of 10% or higher
Improvement in revenues from existing facilities, enrichment of early childhood learning, creation of new businesses, andenhancement and continuous promotion of measures against infectious diseases
1. Improving profitability and efficiency
Efficient personnel reshuffling, development of nursery schools and facilities that would be selected, and collaboration between
nursery school and after-school programs

Management policy

2. Improving growth potential (early childhood learning and development of new businesses)

Challenges

Promotion of new businesses (launch of “codomel”), and creation of new business structures

3. Improving soundness
Measures to foster personnel and suppress turnover rate
●Strengthening of the business portfolio (new and existing businesses)

●Education of personnel and the entrenchment of a new HR system

Development of the managementfoundation●Systemization (sophistication of business administration and streamlining of business operations)(Systematization)●Tightening of the governance system(Cooperation between●Strengthening of development functionsorganizations)●Improvement of revenues (existing business, review of operations, cooperation between organizations)

1. Segregation and systematization of head-office and on-site tasks for streamlining business operations further
Efforts

2. Early realization of growth strategies and promotion of new business development (establishing the second source of revenue)
3. Personnel data utilization and establishment of education systems to suppress turnover rate
© 2023 JP-HOLDINGS, INC.

23

Status of theMedium-Term
Management Plan

Specific Measures and Outcomes for FY 3/23

Key Measures24

Summary of Measures

Developing nursery schools andfacilities that would be selected

To improve profitability of childcare
support facilities

Increase in the number of visitors by digitally supporting nursery schools tours and applications
To strengthen information dissemination through the use of each nursery school’s website, and implement
collaborative events through the use of online services
Expansion of learning programs (swimming, karate, soccer, etc.) in collaboration with nearby schools
To increase the number of children accepted and differentiate the facilities from competitors by expanding the earlychildhood learning programsImprovement of the profitability of each facility through optimization of personnel allocation
Expansion of new contracts for school clubs and children’s houses based on the dominance strategy
Expansion of online training programs to improve the quality of childcare services

Reduction of workload at facilities and headquarters through the adoption of a system
Group integration to improve business efficiency within the group (integrating 3 companies into 1)
Actions to improve the system infrastructure to streamline business operations and achieve sophistication

Streamlining of operations(Compact head office)Responding to the needs of parents(New business)

Promoting product development to utilize pre-cooked ingredients and sell dinner meals, and conducting
test marketing in facilities
Preparation for “bag-less” childcare, including diaper subscription services and set sales of educational
goods and daily necessities
Developing new learning programs (facilities specializing in English/STEAMS-based childcare and afterschool programs)

Expansion of development support
business(New business)

Expansion of developmental support visits to children in need of assistance and its databasemanagement (considering collaboration with other companies)
Concept and area selection for the opening of a multifunctional facility (to be promoted after
government policy are decided)Child-rearing assistance platform“codomel”

Received the grand prize in the Parental Support Services category of the “BabyTech® Awards 2022”
for attaining SDGs
Development and verification for the expansion of dinner sales and service functions

While profitability of existing businesses has significantly improved,
there remains a challenge in expanding growth strategies other than subsidies.
© 2023 JP-HOLDINGS, INC.

24

Long-Term Management Vision25

Long-Term
Management
Vision/Medium-termManagement Plan

Target Indicators

長期経Long-Term
営
Management
ビ
Visionジョン

中期
Mid-term
経management
営
goals
目
標

We aim to develop “nursery schools and facilities thatwould be selected by customers.”(To realize nursery schools, facilities, and an enterprise that will be continuously selected by guardians,
municipalities, training schools, and officials)

Improvement and expansion of existing businesses, newbusinesses, and capital/business alliances
Target consolidated sales: 100 billion yen

To improve profitability at existing facilities and further improve the quality ofchildcare support
To create new value while considering the changes in society and the businessenvironment
Early monetization of new business and achievement of an operating income
margin of 11% or over
(To reform the management structure and implement growth strategies in the 3 years from FY3/24 to FY3/26)

3rd year of the medium-term management plan (final fiscal year)
For FY3/26, we aim to achieve net sales of 38,340 million yen and an
operating income of 4,330 million yen.

© 2023 JP-HOLDINGS, INC.

26

Long-Term
Management
Vision/Medium-termManagement Plan

Actions to Achieve Consolidated Net Sales of 100 Billion Yen
To become a leading platform provider for childcare support services in Japan

Long-Term Management Vision
Aiming to develop “nursery schools and facilities
that would be selected”
Improvement and expansion of existing businesses, newbusinesses, and capital/business alliances
Target consolidated sales: 100 billion yen
Existing business: 50 billion yen
Collaboration between
nursery schools, school clubs, and children’s houses (dominant strategy)Expansion of development support services (multifunctional facilities)
Expansion of early childhood learning programs and bilingual nurseries

New business & M&A: 50 billion yen
Expansion of child-rearing assistance platform businessOverseas business mainly in Asia
Aggressive promotion of M&A and business alliancesResponding to social issues (corporate alliances)

Medium-Term Management Plan
Structural reform, business innovation and creation of
new services and value

1. Realizing growth and competitive advantage(Creation of new businesses and differentiation strategy forexisting businesses)
2. Reforming the revenue structure(Management efficiency improvement, cost reduction, reform ofexisting businesses)
3. Reforming the management foundation(Promoting personnel development, revitalizing corporate culture,enhancing management and administration, and improving theenvironment)(1) Expansion of external sales through partnership
1. Promotion of M&A(Net Sales)
Unit: Billion yen-To actively pursue M&A opportunities in the childcare support business with othercompanies in the same industry, to capture the largest share in the business.

1,000

2. To acquire and utilize social welfare corporations-Establish a corporation to promote social welfare partnerships in order to acquire andutilize social welfare corporations, which account for approximately 70% of all nurseryschool operations.
-We will promote the improvement of the quality of childcare services, the developmentof child-rearing environments, and regional cooperation by responding to succession issues
and providing our proprietary know-how.

3. To develop overseas business mainly in Asia
-Child-rearing assistance platform, our unique early childhood learning program,consulting on nutrition management, new business development utilizing e-commerce.

Newbusinesses(2) Business expansion through self-help efforts
1. Consistent childcare and nurturing system through collaboration between
nursery schools and school clubs-To double the number of school clubs to 200 (expansion of new contracts)-Establishment of nursery schools in focused areas

500

2. Measures to develop nursery schools and facilities that would be selected-Expansion of learning programs, bilingual nursery schools, STEAMS-based childcare and afterschool programs
Expansion of developmental support (multifunctional facilities), and digitalization of programs

3. To develop new businesses-To expand services and functions of the child-rearing assistance platform, and operate foodbusiness
New business development in collaboration and partnership with other industries

Existing
businesses(3) Solving social problems through alliances with other companies
1. Solving issues such as poverty among children, truancy, abuse, etc.
2. Integrated education system (integrated elementary and junior highschools)© 2023 JP-HOLDINGS, INC.

27

Review of the Medium-term Management
Plan (FY 3/24 to FY 3/26) via a Rolling
Method28

Business
Environment

Business Environment Surrounding our Company
Concerns about increased costs due to intensifying competition and rising raw
material and resource prices
Economic Environment

Environment Surrounding Childcare Support Business[Overall]Against the backdrop of the economic activity returning to normal, there is arecovery trend centered on domestic demand.
From FY 3/23 onwards, a growth rate of around 1% is expected to be maintained,
mainly driven by domestic demand.
[Negative factors]
Rising prices due to the impact of resource prices and a weaker yen.
Labor shortages and rising wages.
The Bank of Japan’s expected cancellation of its current long-term and short-term
interest rate operations.

Environment Surrounding Children
Suicides are becoming more common among young people. Suicide is theleading cause of death among teenagers.
The age of children refusing to attend school is decreasing. The number ofchildren refusing to attend school has reached a record high.
(Students)(Students)

Junior highschoolstudents

high school
students

Changes in truant students
Elementary
schoolstudents

Junior highschoolstudents[Positive factors]
Establishment of the Agency for Children and Families in April 2023
Doubling of budget for childcare, improvement of compensation for childcare workers,
measures to cope with declining birthrate, etc.
Extraordinary measures by the government to address the declining birthrate
Strengthening of economic support centered on child allowances, subsidies, and regulatory
reforms
Strengthening of early childhood education and childcare services
Promotion of work-style reforms and expansion of related systems (maternity and childcare leave)(Children)

Number of suicides among children and students
Elementary
schoolstudents[Negative factors]
Decrease in the number of children on waiting lists and acceleration of the birthrate
decline due to changes in the social environment
Competition for childcare facilities is intensifying in some areas.

Overall(Students)

Overall(million yen)

Number of children on waiting list

(Babies)Number of children on waiting list

Childcare and Early Childhood Education Market
Childcare and Early
Childhood Education Market

Childcare and After-school
Education Market(forecast)
Source: “Suicide Statistics,” the Ministry of Health, Labour and Welfare“2021 Survey on Student Guidance Issues, including Student Problems and School Nonattendance,” the Ministry of Education, Culture,
Sports, Science and Technology

Source: “Childcare and Early Childhood Education Market Status and Outlook 2023,” Yano Research Institute Ltd.

© 2023 JP-HOLDINGS, INC.

29

Medium-termManagement Plan

Medium-term Management Plan: Management Policies
Structural reform, business innovation andcreation of new services and value

We will actively develop new business for growth, engage in M&A and promote developmentof infrastructure such as systems through structural reform and business innovation.
Furthermore, we will establish a solid business foundation to create new services and value
and establish a competitive advantage. Through these efforts, we will address parents’ needs
and concerns as well as social issues through our operations to achieve sustainable growth.

Three BasicManagement
Policies

1

Realizing growth and competitive
advantage

2

Reforming the revenue structure

3

Reforming the management foundation© 2023 JP-HOLDINGS, INC.

30

Medium-termManagement Plan

Policy in Medium-term Management Plan

Creation of new services and value

FY 3/26
Realizing
growth andcompetitive
advantage●To analyze the industrial
environment and respond to changes●Expansion of business●To develop new business models
and make them profitable

FY 3/25●Sustainable growth●To establish new business pillars

Reformingtherevenuestructure●Improvement of management
efficiency and optimal allocation ofhuman resources●Reform of the business structure(System development)

FY 3/24
Reforming themanagementfoundation●To provide new value, and develop
human resources and reform the corporate
culture (change in awareness) to support it●To strengthen the governance structure© 2023 JP-HOLDINGS, INC.

31

Medium-termManagement Plan

Target Indicators in Medium-term Management Plan

Management
goal

Business goals for
FY 3/26

Priority
measures

Structural reform, business innovation andcreation of new services and value

Achieving an operating income margin of 11% or over and a turnoverrate of 10% or lower.
Monetizing new business
1. Realizing growth and competitive advantage(Creation of new businesses and differentiation strategy for existing businesses)
2. Reforming the revenue structure(Management efficiency improvement, cost reduction, reform of existing businesses)
3. Reforming the management foundation(Promoting personnel development, revitalizing corporate culture, enhancing management and administration, andimproving the environment)

Reforming the structure of existing facilities, optimizing and systematizing head office personnel
Improving quality through personnel development and controlling turnover rate
Expanding business scale through the creation of new businesses and M&A

Management
policyChallenges●Development of nursery schools and facilities that would be selected●Reforming the structure of existing businesses●Strengthening and streamlining the management foundation●Promoting growth strategies© 2023 JP-HOLDINGS, INC.

32

Medium-termManagement Plan

Management Policy in the Medium-term Management Plan
Expansion of existing businesses, pursuit of expertise, development of
new businesses, M&A, and global expansion
Solving social problems and challenges facing children throughalliances with other companies
Expansion of existing businesses

Creation of new businesses

Responding toparents’ needs

Pursuit of expertise

Food business andsubscription

Childcare support
business
Platform business

Global Expansion

Early childhood
learning programs

Opening of integrated
elementary and junior highschools
Specialized support
Developmental support,
Support business by visiting
M&A ➡ Same industry/different industry nursery schools
New facilities specialized in
Business alliance ➡ Related
Englishbusinesses/different industries

Domestic and foreigncompanies

New business ➡ Development and expansion

Solving social problems andchallenges
Responding to social issues andchallenges through alliances withother companies
Social issues and challenges related tochildrenChild poverty, an increasing number of children
refusing to attend school,
child abuse, suicide,
contact points with society, support for learning
Coordination with various
companies

For the future of children,
we will foster the power to live tomorrowthrough various experiences, support, andguidance.

Social contribution activities
through childcare support© 2023 JP-HOLDINGS, INC.

33

Medium-termManagement Plan

Priority Measures of the Medium-term Management Plan

Basic Management Policy

Realizing growthand competitive
advantage

Priority Measures
Expansion, differentiation, and competitive advantage in existing business areas:
1) Paid programs and external sales of enhanced English, gymnastics, eurhythmics, and dance programs.
2) Lesson business utilizing extracurricular hours.
3) Operation of new learning programs, such as STEAMS-based childcare and after-school programs, andbilingual nurseries4) “Nursery Anywhere” program in which the Tokyo metropolitan area and regional nursery schools collaborate
to offer nursery schools experience and temporary care.
5) Regional collaboration to improve the child-rearing environment through the “My Nursery School System.”6) Business expansion from licensed nurseries to accredited kindergarten.
Development and monetization of new businesses:
1) Child-rearing assistance platform “codomel” (sales to parents/employees and BtoB sales).
2) Food business (sales to parents and “Kids’ Restaurant” serving dinner at nursery schools).
3) Development and consideration of new business areas (dispatch business, integrated elementary and juniorhigh schools, social welfare corporations, and others).
Active promotion of M&A:
1) Childcare-related companies for the childcare support business, etc.
2) New business areas

Reforming therevenue structure

Streamlining management and reducing costs:
Systematization, optimizing personnel allotment, strengthening financial management, and thoroughexpense control.
Measures based on data analysis, elimination of unnecessary tasks, and promotion of compact head
office.
Strengthening the revenue base:
Maximizing subsidies, optimizing personnel allotment, and increasing new contracts.

Reforming themanagementfoundation

Developing human resources and revitalizing corporate culture:
Enriching training as a foundation for human resources development and revitalizing corporate culture througha change in mindset.
Enhancing management and administration:
Tightening governance, adopting a hands-on operation system, and thoroughly managing risks.
Improving the environment:
Food loss measures, reducing CO2 emissions through power-saving measures, and engaging in social
contribution activities.

© 2023 JP-HOLDINGS, INC.

34

Medium-term Management Plan (FY 3/24-FY 3/26)

Medium-termManagement Plan

●To develop a three-year plan from FY 3/24 to FY 3/26, while considering changes in the market environment and recent business trends.
●To reform the structure of childcare support business, such as nursery school service fees, and strive to monetize new businesses.
●The decrease in ordinary income in FY 3/24 compared to the initial plan is due to investments in systems and new businesses.

Unit: million yen

Resutls

Resutls

Resutls

Forecast

FY3/22

FY3/23

FY3/24Y/yComparedtoforecast

Resutls

Y/yComparedto
Forecast
forecast

Net sales

34,3732.6%

1.4%

35,5073.3%-0.4% 36,300

Operatingincome

3,344

17.1%

22.5%

3,667

9.6%

0.9%

9.7%

1.2%

1.6%

10.3%

0.6%

0.1%

Ordinary
income

3,358

13.9%

21.7%

3,745

11.5%

0.9%

3,960

Extraordinary
income

9.8%

1.0%

1.6%

10.5%

0.8%

0.1% 10.9%

Net income

2,279

324.1%

29.5%

2,698

18.4%

5.1%

6.6%

5.0%

1.4%

7.6%

1.0%

0.4%

OperatingincomemarginNet income
marginY/y2.2%

Medium-term Management Plan
FY3/24

Unit: million yen

Forecast

FY3/25

FY3/26

Y/yTargetY/yTargetY/yNet sales

36,3902.5%

37,2202.3%

38,3403.0%

Operatingincome

3,820

4.2%

4,100

7.3%

4,330

5.6%

Operatingincome margin

10.5%

0.2%

11.0%

0.5%

11.3%

0.3%

5.7%

Ordinary income

3,842

2.6%

0.4%

Extraordinary
income

10.6%

0.1%

2,497

7.5%

Net income

Net income
margin

6.9% -0.7%*1: “Rate of change compared to the previous term” and “Rate of change compared to the plan” of operating income margin, ordinary income margin,
and net income margin attributable to owners of parent indicate differences.
*2: Rounded down to the nearest million yen.
© 2023 JP-HOLDINGS, INC.

35

Medium-termManagement Plan

Management Strategy Map
Provision of services and products
Existing businesses
Penetration in markets

Provision in the market

Existing
businesses

New businesses2Increase of enrolled children and improvement in profitability at eachfacility
Revising English, gymnastics, and eurhythmics programs (feecharging)Early childhood learning and new programs (differentiation)
Lesson business utilizing extracurricular hours
Sale of educational goods and paid trash disposal services

Strengthening profit improvement

Development of products andbusinesses
External sale of existing businesses
Development of new programs and products
Food business (addressing issues faced by parents)*Sales promotion utilizing the childcare support
platform

Enhancement of business development

1

3
Cultivation of new markets

New childcare business with digital technologies⇒Online childcare and digitalization of early childhood learning programs
Establishing a new bilingual nurseryImplementing our unique STEAMS-based childcare and after-school
programs
Newbusinesses

Development support business (multifunctional facilities)⇒After-school day care
⇒Child development support business and support business by visiting nurseryschools

To extend our existing businesses, and offer
these services earlyDiversification in a narrow sense
and solving social issues
Child-rearing assistance platform business⇒Cooperation in different fields and business forincreasing clients
Creation of new businesses⇒Business as a new pillar
Corporate alliances to solve social problems
Expansion of education business (integrated
elementary and junior high schools)

Collaboration and partnerships with otherindustries© 2023 JP-HOLDINGS, INC.

36

Priority Measures for FY3/24

37

Medium-termManagement Plan

Policies of the Management Plan for FY 3/24

Improvement of profitability and early monetization of new businesses through structural reforms
and business confirmation
Structural reform, business innovation, competitive advantage, and new business creation

Existing business domain

Sales growthProfitability improvement
Enhance and extend (superiority)
In mature markets, we will evolve the businessmodel and improve the value we offer.
(Measures to expand earnings of related
businesses)[Expansion of existing business earnings]
Reallocation of personnel to maximize subsidies
Expansion of commissioned projects for school clubs andchildren’s houses(Cooperation with nursery schools = dominance strategy)
Measures for the increase of the number of children accepted
1) My Nursery School System through regional cooperation
2) Implementation of early childhood learning programs at all
nursery schools[Expansion of related businesses]

New business domain

Change (structural reform)

Create (growth potential)

Improve operational efficiency and establish
an independent organizational structure
through business restructuring

Develop new business areas for sustainablegrowthPromote M&A as a strategic investment[Revenue structure reform]
Management efficiency improvement and cost reduction
1) Separation of on-site and headquarter operations tostreamline operations and realize a compact head office2) Systematization and data analysis3) Optimization of personnel allocation[Management infrastructure reform][New business]Monetization of the child-rearing assistance platform
1) Sale of products to employees and guardians2) Sale of childcare-related products to other companies inthe same industry
3) Operation of food businessKids’ Restaurant and temporary childcare services incooperation with local communities[New business] (Research and establishment)

Monetization of cast (English, gymnastics, and eurhythmics)
programs
1) Charging for existing programs (program revision)2) Implementation of lesson programs utilizing extracurricularhours
Fee-charging for nursery equipment and supplies
Diaper disposal and learning equipment sets

Development of human resources and revitalization of
corporate cultureKeeping turnover rate below 10%
Evaluation linked to personnel system and human resources
development(Evaluation based on KPI setting)Efficiency improvement through optimization of personnel
and systematization

New business operation
1) Global operation
Child-rearing assistance platform and personnel education
2) Integrated elementary and junior high schools3) M&A involving other companies in the same industry

Realizing growth and competitive
advantage

Reforming the revenue structure

Reforming the management foundation© 2023 JP-HOLDINGS, INC.

38

Medium-termManagement Plan

Priority Measures for Medium-term Management Plan: “Competitive Advantage”

To secure competitive advantages through parent-oriented response and enrichment of early childhood learning programs
Area dominance strategy

Response from parents’ perspective

Initiatives for establishing nurseryschools and school clubs for STEAMSChildcare facilities specializing
in English

Online /video-based
facility tours

As physical activity is essential for thehealthy development of infants, toddlers, andschool-aged children, we will add “Sports” to
STEAM and incorporate it into daily childcare
and child-rearing.

Facilities where native Englishspeaking teachers are assigned
to the nursery schools andchildren can experience English
in an enjoyable manner.

Increase the number of schools
clubs and children’s houses to
200/increase of 10 facilities per year
Achievementof ourdominance

Enrichment of the website andstrengthening of communication
To support childcarefrom babyhood toearly childhood toschool age in our area
FY3/23New contracts
for undertaking
the operation of
12 schools clubs

Expansion of learning programs
Extracurricular early childhood learning
programs

Mojikazu Land (learning program)
English, gymnastics, eurhythmics & dance programs
Lesson business in collaboration with other companies(swimming, soccer, etc.)

EC sales of various kindsof learning goods
Bag-less childcare such as
diaper subscription

Parents

Parents

My Nursery School
SystemVarious support
Nursery schools

Those whoare expected
to give birthand raisechildren

ScienceTechnology
Engineering
Arts (Liberal Arts)
Mathematics
SportsPromoting program development
Implementation of test marketing insome regions
Collaboration with universities andother research institutions to consider
measures to be taken
Support business by visiting nursery
保育所等訪問支援事業
schools

Expansion of English, gymnastics, eurhythmics, and dance programsTraveling
instructors

EnglishEurhythmics

Get familiar with English through a program taught
by a native English speaker.

Feel music with the whole body and learn the musical elements.

(1)

Gymnastics

Dance[Promotion of early childhood learning and new
programs]•Promote lesson business for each individual child utilizing
extracurricular hours or collaboration with other companies•By utilizing extracurricular hours to offer lessons on
weekdays, children can spend more time with their parents
on holidays and alleviate their burden.

Support business by visiting nurseryschools▷Specialized staff visit each facility and offer
consultation services for development of children
who need care.
Support for disabled children: To hold training
and give instructions for enabling them to live in agroupCounselors for pupils, nursery staff, physicaltherapists, occupational therapists, psychologicalcounselors, and others who possess theknowledge and experience of support fordisabled pupils visit facilities.

(2) Establishment of multifunctional facilities
Learn about both physical and mental movements through sports.

Acquire dance skills gradually from the basics.

© 2023 JP-HOLDINGS, INC.

39

Medium-termManagement Plan

Priority Measures for Medium-term Management Plan: “Competitive Advantage”
To introduce our original “STEAMS” program to nursery schools and school clubs
Development with a forward-looking, comprehensive
perspective in a continuous manner

STEAMS.

STEAMS ProgramSupported by nursery schools andschool clubs
University

The power tostep forward
The
power
to think
thingsthroughhighschoolJunior highschoolThe
power
to work
as ateam

Elementary
schoolDevelop the ability to find and explore questions from therelationship between oneself and society and real life.

Develop the ability to voluntarily think from various perspectives,
have a dialogue and convey it..

Nursery school

Make it a habit to ask “questions” from the 5W1H perspective in daily life.

[Overview of STEAMS program - Practical learning through problem solving]●“STEM education” is an educational method that originated in the U.S. in the
2000s with the aim of fostering IT talent. It stands for Science, Technology,
Engineering, and Mathematics.
●“STEAM education” combined with liberal arts is promoted by the Ministry of
Education, Culture, Sports, Science and Technology as a problem-solving learning
method for real-world challenges, with a focus on cultivating interdisciplinary talent.
●Our company incorporates sports, which are essential for the healthy
development of infants, toddlers, and school-age children, into STEAM education.
We adopted the “STEAMS Program” in April, which promotes collaborative
problem-solving and inquiry-based learning in a fun and engaging way, allowing
children to expand their interests and curiosity while moving their bodies.

Specific programs (examples): Realization, curiosity, and interest
Let’s try flying a kite! What kite flies the highest?
[T] Material and size of the kite
[T] String length[S] Running and flying a kite
[E] Balance of the kite’sframework

Theme:
Let’s fly a
kite!

[T] Material of the kite’s
frame[S] Weather conditions
suitable for flying[A] Design of the kite’s sail© 2023 JP-HOLDINGS, INC.

40

Medium-termManagement Plan

Priority Measures for Medium-term Management Plan: “Competitive Advantage”
Collaboration with local communities utilizing temporary childcare services
Measures for regional revitalization

Nursery Anywhere[Regional Revitalization] Nursery Anywhere●To utilize the temporary childcare system to enable parents
and children to temporarily relocate to our company's nurseryschools in various regions.

“Nursery Anywhere” through collaboration with local governmentsin each region●Course to experience the local culture, food, and customs
unique to each region.
●Implementation of “Nursery Anywhere” where parents andchildren can stay in the region for two weeks to experience thelocal culture and customs.
Examples: From Tokyo to Hokkaido/From Hokkaido to Tokyo/From Tokyo to Okinawa●Parents and children can experience the local culture andcustoms of each region.
●Our company will provide learning programs at bilingual
nurseries that specialize in English education.

Discovering the future potential of children

To utilize our company’s nursery
locations from Hokkaido to Okinawa“Nursery Anywhere” for areas where our company does
not have nursery schools.

Hokkaido

Parents
andchildren●As part of regional revitalization, we will collaborate with local
governments and local nursery schools to implement “Nursery
Anywhere” program.

Parents
andchildrenExperience at our company’snursery schools●From a nursery school in Tokyo to anursery school in Shimane●From a nursery school in Shimane to anursery school in Tokyo

Parents andchildren

Shimane

Okinawa

To experience thelocal culture andcustoms of theregionTokyo

To experience ourcompany’sbilingual nurseryschoolParents andchildrenTokyo

Arrangement of housing© 2023 JP-HOLDINGS, INC.

41

Medium-termManagement Plan

Priority Measures for Medium-term Management Plan: Structural Reform and Business Innovation

To maximize the value of human capital
We aim to maximize the value of human capital by utilizing exuberant personnel and realizing organizations so that diverse talents
take on responsibilities proactively with a sense of fulfillment and pride to create new value through interaction.

Revitalization of corporate
cultureHuman resource recruitment,
promotion and evaluation•Personnel allotment according
to management strategy (theright person for the right job)
•Recruiting human resources forthe next-generation management•Reform of the personnel
evaluation system

Human
resource
strategy

Ability to respond toenvironmental changes•Skills to enhance adaptability to change•Diversity development through humanresources education

Engagement

Realization of a company
whereemployees can have asense of fulfillment and
pride

Data analysis(Utilization)•Promoting active communication
beyond business companies andorganizations•Reforming employee awareness

Talent management thatutilizes individuals•Personnel allotment andpromotion that encourages
career development andindependence

Analysis for reducing
turnover rate
•Collecting and analyzing datafrom questionnaire surveys, etc. toreduce turnover rate
© 2023 JP-HOLDINGS, INC.

42

Medium-termManagement Plan

Priority Measures for Medium-term Management Plan: Structural Reform and Business Innovation

Realization of a compact head office through the elimination of unnecessary tasks through structural reform,
work efficiency improvement through systematization, and staff optimization through advanced measures

Business streamlining

Curbing turnover rate

Improvement in quality

Simple operations
Visualization andstandardization of tasks

Prevention of resignation by staff
through condition checks and keep
turnover rate below 10%

Improvement of management systemin each area

Business
efficiency
improvement

Personnel optimization
Restructuring within theGroup

Systematization
Personnel management and financial
affairs

Data collection andanalysis of staff
conditions
Improving operational efficiency at head
office and on the field
Data analysis to prevent turnover

Evaluation linked to the personnel
systemPromotion of systemization of humanresource systems, etc.
Data analysis and efficiency improvement ofoperations

Coordination between
the field and head
office

Review of evaluation criteria
based on new KPI settings

Bloc and area-based management system
Two nursery school blocs
School club and children’s house block

Business
efficiency
improvement

A system where eachfacility cancomplete tasks
independently
Increasing the number ofarea managers© 2023 JP-HOLDINGS, INC.

43

Medium-termManagement Plan

Priority Measures for Medium-term Management Plan: “Growth Strategies/New Businesses”

To strengthen the measures for early monetization of new businesses and development of new businesses

Outline of “codomel,” a child-rearing assistance platform

Sales of products targeting parents(1) To sell various items including those related to childcare(Educational goods, daily necessities, cosmetics, etc.)

Sales of products targeting employees(2) Daily necessities, cosmetics, clothing, etc.

Development of related businesses(1) Staffing business
Staffing to various industries including nursery teachers
Personnel staffing utilizing codomel(2) Real estate business (property brokerage, etc.)
In-house operation of rental of housing for nurseryteachers and property introduction

Global business

Food business (Phase 1: Retort pouch foods ➡ Phase 2: Frozen foods)
1. Product development based on menus
2. Selection of ingredients

3. Preparation/Cooking
4. Retort-pouch/Frozen foods

Sale of retort-pouch foods
Kids’ Restaurant(1) Cross-border e-commerce utilizing codomel
Selling products mainly in Asia
(2) Business development utilizing human resources
Human resource development in collaboration withoverseas companies(Japanese language schools, etc.)
Accepting people from abroad in Japan(3) Business utilizing childcare support know-how
Consulting, etc.

© 2023 JP-HOLDINGS, INC.

44

Priority Measures for Medium-term Management Plan: “Growth Strategies/New Businesses”

Medium-termManagement Plan

Active M&A and business alliances/Expansion of investment to develop new businesses
Business scale expansion (growth strategy)

Initiating new businesses

Active promotion of M&A and business alliances(expanding business scale)

Entry into the education field and businessesCompanies in the same industry (childcare support
businesses such as nursery school business operators)
Companies related to childcare peripheral businesses

Bringing out new possibilities from children
Establish an “integrated elementary and junior high school” withan original curriculum[Scenarios envisioned for the childcare industry]

1. To utilize abandoned schools in the Kanto region to establish an
integrated elementary and junior high school that activates theregion and shapes a bright future for children
2. To set an original curriculum in collaboration with scholars
3. To establish a continuous nurturing, cultivation and education
system from infants through junior high school students without
gaps

School●学童
club①Marketlaunch period①市場の立ち上り期

Nursery school●保育②Maturity
period②成熟期③Accelerated
restructuring period③再編加速期

市場規模
Marketsize

Number of
プレーヤー数
players

Active promotion of M&A and business alliances
Small
小Dispersed
market
分散市場

Oligopoly
situation in the industry:Market share per company
業界の寡占度: 1社あたりの市場シェア

Large
大
Oligopolistic
market
寡占市場[Expanding existing and peripheral businesses through M&A]
Promoting large-scale M&A
Capturing intensifying competition and exhibiting competitive advantage
through a dominant position
Gaining superiority through economies of scale in oligopolyCollaborating and cooperating with other companies that have affinity with ourbusiness

Aggressive investment<To promote business alliances and M&A
with the same and other industries>
To promote M&A that leads to oligopolyTo collaborate with other companies in different industries andperipheral businesses for childcare© 2023 JP-HOLDINGS, INC.

45

3

FY3/24 Forecast

46

FY3/24
Forecast

FY 3/24 ForecastWe aim to increase earnings through structural reform of existing facilities and expansion of early childhood learning programs.
The reason why net income attributable to owners of parent is decreasing is that we sold fixed assets (land and buildings) of 4 facilities
in the previous term.

Full-year forecast
for FY 3/24

Results for FY 3/23

Rate of change(%)

Change35,50736,390882

2.5%Operating income (million yen)

3,667

3,820

152

4.2%

Ordinary income (million yen)

3,745

3,842

96

2.6%

Net income attributable to owners of parent(million yen)

2,698

2,497

-201

-7.5%

Net income per share (yen)

26.06

29.32

3.26

-

Ordinary dividend:

5.0

Commemorative dividend:

1.0

6.0

1.0

-

Net sales (million yen)

Dividend per share (yen)Ordinary dividend:

19.2

20.5

1.3

-

Expected opening of nursery school(school)

2

1

-1

-

Expected consignment of school clubs
and children’s houses (facility)

13

8

-5

-

Dividend payout ratio (%)© 2023 JP-HOLDINGS, INC.

47

FY3/24
Forecast

New Openings For FY3/24

No. of New Openings on April 1, 2023

Nursery Schools: 1
School Clubs: 7
Bilingual Nursery School : 5(The Company changed licensed nurseryschools and Tokyo Licensed Nursery Schools tobilingual nursery school)

No. of Facilities Operated asof the End of April 2023
Nursery Schools : 209
School Clubs: 84
Children’s houses : 11
Total : 304

No. of New Openings on June 1, 2023

School Clubs : 1

New Openings For FY3/24
Total : 9
※As of March 31, 2023, the Company closed
Tokyo Licensed Nursery School named Asc Fudomae Nursery School. In addition, due to the
expiration of the contract, the Company withdrew
from school clubs named Wakuwaku Akabane
Hiroba/Akabane Children’s Club No. 1, Wakuwaku
Akabane Hiroba/Akabane Children’s Club No. 2,
Wakuwaku Akabane Hiroba/Akabane Children’s
Club No. 3, Wakuwaku Kirigaoka-sato
Hiroba/Kirigaoka-satokko Club No. 1, Wakuwaku
Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No.
2, Wakuwaku Kirigaoka-sato Hiroba/Kirigaokasatokko Club No. 3, Wakuwaku Fukuro
Hiroba/Akakita Hibari Club No.3, Wakuwaku
Yoniwa Hiroba/Yoniwa Elementary School Icho.
Club No. 1, Wakuwaku Yoniwa Hiroba/Yoniwa
Elementary School Icho. Club No. 2, Mitaka
Municipal Minamiura School Club Annex A,
Minato-ku Houka-go→ Club Honmura, Bunkyo-ku
Meidai Temporary Childcare Room as of March 31,
2023.

Tokyo
5 Bilingual Nursery School・Asc Bilingual Nursery School Eifuku
・Asc Bilingual Nursery School Kameido
・GENKIDS Bilingual Nursery School
Shinkoyasu
・Asc Bilingual Nursery School Asakusabashi
・Ask Bilingual Nursery School Meidai-mae

Tokyo
1 licensed nursery school・Shinagawa Municipal Yashio Nishi Nursery
SchoolTokyo
8 school clubs and children’s houses(Out of which, one facility is to be opened in June 1.)・Heisei Elementary School After School Kids’ Club
・Ryusen Kids’ Club
・Chofu Municipal Chowa Elementary School Club No.2
・Minamikko Hiroba
・Minato-ku Houka-go→ Club Konan
・Takaban Elementary School Lan Lan Hiroba
・Yonsho Aozora School Club
・Asc Asakusabashi Kids’ Club (on June 1, 2023 )© 2023 JP-HOLDINGS, INC.

48

Dividend policy

Dividend policy⦿ Dividend policy

・Regarding profit sharing, our company pays dividends while securing internal reserve required for
future business and fortification of our management structure.
For FY 3/24, in view of business trends, we plan to increase the dividend by 1 yen from the previous
fiscal year’s ordinary dividend of 5 yen to 6 yen.
Commemorative
dividend

¥6.0

¥4.50

Ordinary
dividend
5.0 yenCommemorative
dividend
1.0 yen

¥6.0

¥3.90

¥3.90

Payoutratio
30.４%

Payoutratio
63.4%

Payoutratio
17.3%

Payoutratio
19.2%

Payoutratio
20.5%

FY 3/20

FY 3/21FY 3/22

FY 3/23(Planed)

Forecast
for FY 3/24

* The term-end dividend for FY 3/23 is the dividend per share approved at the 31th annual meeting of shareholders.
© 2023 JP-HOLDINGS, INC.

49

4

APPENDIX

50

SDGs

Social Issues to be Solved with Our BusinessSocial issues to be solved with our businessChildcare
support

Educational
supportRelated SDGs

Improve the quality ofchildcare support
Reduce the numberof children on waitinglistsPromotion of high quality childcare support
Establishment of new facilities for
decreasing the number of children on waitinglistsDevelopment and provision of online
childcare while grasping changes in thesocial environmentSafe, reliable facilities and operation
Provision of nutritious lunch for maintaining
healthEnrichment of support for child development

Offer high quality
early childhood
learning

Development and enrichment of educational
programs (English, exercise, eurhythmics
and dancing)Development and promotion of online
education
Development of programs for early childhood
learning at home in response to changes inthe social environment
Provision of early childhood learning
opportunities

×
Partnership

Major activities

To help solve social issues based on the partnership with stakeholders© 2023 JP-HOLDINGS, INC.

51

SDGs

Social Issues to be Solved with Our Corporate Activities

Social issues to be solved withour corporate activities

Related SDGs

Major activities

Personnel
development

Improvement in expertise andactualization of independent
career development

Promotion of work style reformEnrichment of training structure
Career paths and job rotation

Empowermentof women

Actualization of diversity
minded workplaces

Workstyles tailored to lifestyles
Systems for childbirth, childcare, and nursing care
Development of a proper business environment

Human rights
and D&I*1

Actualization of diverse
workstyles

Utilization of diverse human resources and soundbusiness administration
Development and production of female leaders

Socialcontribution to
local
communities

Creation of a childcare
environment

Promotion of childcare support in local areas
Promotion of employment
Promotion of prevention of abuse

Earthenvironment

Contribution to a sustainable
earth environment

Creation of environmentally sound facilities
Reduction of CO2 emissions by installing LED lighting
Reduction of food loss and waste

Partnership

To help solve social issues based on the partnership with stakeholders

×*1: Diversity & inclusion (To create something new by utilizing different experiences and accepting differences)© 2023 JP-HOLDINGS, INC.

52

SDGs

Initiatives to Solve Social Issues

As a mission of an enterprise that operates childcare support business, we will approach impoverishedhouseholds and take measures for preventing child abuse, which are social problems.

・We will discuss various measures for raising and donating funds, and determine and actively
promote “activities” and “initiatives” for the future of children.
(*We conduct “Single Parent Household Support” annually.)

No poverty

Prevention of child abuse© 2023 JP-HOLDINGS, INC.

53

SDGs

Initiatives to Solve Social Issues

⦿To reduce environmental burdens and disposal costs, by thoroughly reusing and recycling
necessary products for childcare
⦿ To support “childcare around the world” by offering inexpensive, high quality, reusedchildcare goods, which are available only in Japan, to countries and regions in needChild-rearing assistance platform© 2023 JP-HOLDINGS, INC.

54

Supplementary
Material

Nursery School and After-School Childcare Market

Although the child population and the number of children on waiting lists are decreasing, the nursery school market is still growing.
The number of nursery facilities continues to increase year by year, while the number of enrolled children is showing a slight downward trend.
The after-school childcare market continues to grow year by year, but the number of children on waiting lists has decreased slightly to 13,000.

Number of nursery facilities (facilities)

Nursery school market

FY 3/16
FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/23(estimated)

FY 3/23(forecast)

FY 3/23
FY 3/23
FY 3/19
FY 3/18
FY 3/20 FY 3/21
(forecast)(estimated)
Source: “Childcare and Early Childhood Education Market Status and Outlook 2023,” Yano Research Institute Ltd.
FY 3/16

FY 3/17

FY 3/22

Trend in the number of registered children andchildren on waiting lists for after-school childcare

After-school childcare market

FY 3/15FY 3/19
FY 3/18
FY 3/21FY 3/17
FY 3/20
Number of nursery
Number of enrolled
facilities (facilities)
children (people)

FY 3/15FY 3/16

FY 3/17

FY 3/18

Number of registeredchildren for after-school
childcare

FY 3/19

FY 3/20

FY 3/21

Number of children
on waiting lists© 2023 JP-HOLDINGS, INC.

55

Supplementary
Material

Variations in the Number of Children on Waiting Lists

The number of children on waiting lists in FY 3/22 was 2,944, down 2,690 from the previous term.
There are regional disparities, and the number of “hidden waiting list children” is estimated to exceed
60,000.

Variations in the number of children on waiting lists

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

Source: “Childcare and Early Childhood Education Market Status and Outlook 2023,” Yano Research Institute Ltd.

© 2023 JP-HOLDINGS, INC.

56

Supplementary
Material

Current Nursery School Teacher Shortage Situation

 The ratio of job openings to job applicants for nursery school teachers is decreasing.
However, there is a continuing shortage of nursery school teachers across Japan.
(National average as of February 2023: 2.95 times)

 Jobs to applicants ratio of Tokyo had the trend of increase as of Jun. 2022, but turned todecrease to 2.95 as of Feb. 2023.
Nationwide

Tokyo

Effective
Opening
to Application
Ratio
Nursery
SchoolTeachers
Effective
Opening
to Application
Ratio
forforNursery
SchoolTeachers(X)(X)

8
7
6
5

Feb.
3.70

4

●
●

3

●
●

2

Feb.
2.95

1
0
Source: Ministry of Health, Labour and Welfare Employment Security Bureau’s General Job
Placements (Report on Employment Service)© 2023 JP-HOLDINGS, INC.

57

Supplementary
Material(1)

Concept of the Child-Rearing Assistance Platform “codomel”

Platform namecodomelcodomel is a word we have coined by combining the word for children in Japanese of “codomo” with the word for product in(2) Concept of theLatin of “ merx.”
platform name and We have used the colors of the five initiatives we will attempt to achieve through this service from among the 17 SDGs: “1.
logo
No Poverty,” “3. Good Health and Well being,” “7. Affordable and Clean Energy,” “10. Reduced Inequalities” and “16. Peace,
Justice and Strong Institutions.” In addition, the circular design made by people linking their hands expresses the “circle
for everyone,” which we will create by connecting children, parents and local communities through this service.

(3) Logo

The first services of the codomel child-rearing assistance platform will be a matching service in which users can
individually sell and purchase used goods over the Internet focused on childrearing-related supplies (e.g., baby(4) Overview of the firstsupplies and clothing) mainly for the childrearing generation and a service to provide products highly needed
servicesby the childrearing generation and childrearing related information and services.
We will also collect childrearing-related supplies and clothing donated by parents at the nursery schools
operated by our group and then provide them as used goods.
We will unroll this service overseas and further expand services after the launch of this service on April 1, 2022.

© 2023 JP-HOLDINGS, INC.

58

Recruitment of Nursery School Teachers

Supplementary
Material

FY3/16

Nursery School
Teacher
Non qualified

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/23

FY3/22As of the1st of Apr.

New
graduates

197

247

276

248

182

166

166

Mid-career
employment

241

327

325

269

292

226

322

New
graduates

23

32

46

26

9

7

5

175
Joined on Apr.1, 2023

220
Joined on Apr.1, 2023

1

*After joining JPHD, non qualified graduates are expected and assisted to acquire nursery school teacher qualification. Started this recruitment style from FY2016.
*Includes seconded employees to associated companies

Trend of Employee Numbers in Childcare Support Business（人）(Persons)※放課後児童支援員や栄養士、保育士以外の従業員を含む(*Includes employeesof school clubs staffs, nutritionists, etc. other than nursery school teachers)

7000
社員

アルバイト

6000
5000
4000
3000
2000
1000
0

FY2014年
3/14

2015年
FY
3/15

2016年
FY
3/16

3月末

3月末

3月末

2017年
FY
3/17
3月末

2018年
FY
3/18
3月末

2019年
FY
3/19
3月末

2020年
FY
3/20
3月末

2021年
FY
3/21
3月末

2022年
FY
3/22
3月末

2023年
FY
3/23
3月末

© 2023 JP-HOLDINGS, INC.

59

Supplementary
Material

Changes in the Number of Facilities Operated and the Number of Children
Accepted to Nursery Schools
FY3/12

Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)
Small-scale Nursery Schools
Tokyo Licensed
Schools
Company-led
NonNurseries
licensedNon-licensed
Nursery
Municipality
Schools
Authorized
Non-licensed
Other non-licensed
School Clubs
Children's Houses
Private School Clubs
Kindergartens (Overseas
Facility)

Total

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/23As of Mar.

FY3/22

11

14

16

14

10

10

11

12

12

11

11

11

61

71

85

102

118

136

148

160

171

177

182

183

0

0

0

0

0

0

0

2

0

0

0

0

26

26

26

26

26

23

21

21

20

19

13

9

0

0

0

0

0

0

0

2

2

１

1

1

4

4

4

4

1

0

0

0

0

0

0

0

0

0

0

0

4

3

3

3

4

4

4

5

39
7
0

40
8
0

43
8
0

46
8
0

55
10
0

63
12
4

71
12
5

72
11
5

72
11
4

77
11
１

81
11
0

89
11
0

0

0

0

0

0

0

1

1

1

0

0

0

148

163

182

200

224

272

289

297

301

303

309

251

*We reviewed the count by management structure in the 2Q of FY3/16 and changed three licensed schools (public-private management) to other non-licensed nursery schools.

TREND OF NURSERIES AND CHILDREN
Number of facilities
Non-licensed Othernon-licensed

300

Non-licensed Municipality Authorized

250

Company-led Nurseries
Tokyo Licensed Schools

14,058200

15,653

15,59914,350

6,956

150
5,500

102

115

131

146

159

172

16000
14000

11,192

9,350
8,133

100

15,581

12,375
10,461

Small-scale Nursery Schools

Licensed Nursery Schools(Private management)
Licensed Nursery Schools(Public-private management)Children in Nurseries

Number of Children

15,323

183

200

209

212

211

209

12000
10000

8000
6000

83

4000

50

2000

0

0
FY 3/11

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23© 2023 JP-HOLDINGS, INC.

60

Supplementary
Material

Consolidated Results (Highlights)
FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

Net sales (million yen)

26,94529,64732,16933,50034,37335,507

Operating income (million yen）

1,469

1,880

1,989

2,857

3,344

3,667

Ordinary income (million yen)

1,469

1,920

2,003

2,947

3,358

3,745

Net income attributable toowners of parent (million yen)

910

1,071

1,122

537

2,279

2,698

Net income per share (yen)

10.70

12.44

12.81

6.15

26.06

31.18

*Net sales and operating income are the amounts after the reclassification of presentation methods.
Operating income/Ordinary
Income (million yen)

Net sales (million yen)
Net sales

FY 3/17

Ordinary
incomeOperatingincomeFY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23© 2023 JP-HOLDINGS, INC.

61

Supplementary
Material

Consolidated Results (Balance Sheet/Statement of Cash Flows)

FY3/18

FY3/19FY3/20Total assets (million yen)

25,75828,255

26,122

Net assets (million yen)

7,756

8,950

9,636

Shareholders’ equity ratio (%)

30.1

31.7

36.9

FY3/18

FY3/19FY3/20FY3/21

FY3/22

29,740FY3/2334,27435,69410,007

11,975

13,584

33.7

34,9

38.1

FY3/21

FY3/22

FY3/23

Cash flows from operating
activities (million yen)

1,865

1,829

2,320

2,469

3,884

2,735

Cash flows from investing
activities (million yen)）-1,292

- 940

418

190

413

411

Cash flows from financing
activities (million yen)

-135

1,475

-3,349

2,155

1,978

-1,112Year-end balance of cash andcash equivalents (million yen)

4,455

6,816

6,206

11,02017,296

19,330© 2023 JP-HOLDINGS, INC.

62

Supplementary
Material

Dividends

The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio ofaround 30% while maintaining the necessary internal reserves for future business development and tostrengthen our management structure.
FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

Amount of dividend pershare (yen)

3.50

3.70

3.90

3.90

4.50

6.0

Payout ratio (%)

32.7

29.7

30.4

63.4

17.3

19.2

※Breakdown of year-end dividend for the fiscal year ended March 2023
Ordinary dividend: 5.00 yen, Commemorative dividend: 1.00 yen※The term-end dividend for FY 3/23 is the dividend per share approved at the 31th annual meeting of shareholders.

© 2023 JP-HOLDINGS, INC.

63

Forecast Precautions
This document contains forecasts about the future. However, these are predictions thathave been made by our company based on the information available at the time of
publication. The reality may be significantly different from our predictions due to economic
conditions and market trends. Furthermore, this document is not intended to solicit
investment. We are under no obligation to amend or change the information pertaining toforecasts contained in this document even if we obtain new information in the future.

Inquiries:
5F Shinagawa Season Terrace, 1-2-70 Konan, Minato-ku Tokyo
JP-HOLDINGS, INC. Tokyo Office
Corporate Planning Department
Corporate Communications & Investor Relations Section
TEL: 03-6433-9515 e-mail : jphd_pr@jp-holdings.co.jp