JP-HOLDINGS, INC.
Financial Results for the 2Q of Fiscal Year ending March 2021

TSE 1 (2749)
https://www.jp-holdings.co.jp/

INDEX

1

Management Policy in the New Management Structure2

FY3/21 Management Plan

3

Measures for Preventing the Spread of COVID-19

42Q FY3/21 Results

5

FY3/21 Forecast

6

APPENDIX

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2

1

Management Policy in the New
Management Structure

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3

Ideal StateNet Sales(million yen)

Our vision in the new management
structure in FY3/21“To further improve the quality of childcare”
 To offer topnotch child-raising services
 To build childcare support facilities thatwould be selected by customers
Enterprise trusted byguardians

Net Sales (plan)

33,005Enterprise loved by
employees

Leading company in the childcare
support field
Net Sales

5,376

FY3/06

FY3/10FY3/15
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

FY3/21

4

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
waiting lists●Promotion of high-quality childcare support●Establishment of new facilities for
decreasing the number of children on waiting
lists●Development and provision of online
childcare while grasping changes in thesocial environment●Safe, reliable facilities and operation●Provision of nutritious lunch formaintaining health●Enrichment of support for childdevelopment

Offer high-quality
early childhood
education●Development and enrichment ofeducational programs(English, gymnastics, eurhythmics anddancing)●Development and promotion of online
education
Development of programs for early childhood
education at home in response to changes inthe social environment●Provision of early childhood education
opportunities

×
Partnership

Major activities

To help solve social issues based on the partnership with stakeholders

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5Social Issues to be Solved with Our Corporate Activities
Social issues to be solved withour corporate activities
Personnel
development

Related SDGs

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

Improvement in expertise andactualization of independent
career development

Empowermentof women

Actualization of diversity-minded
workplaces

Human rights
and D&I*1

Actualization of diverse
workstyles

Major activities●Workstyles tailored to lifestyles●Systems for childbirth, childcare, andnursing care
●Development of a proper businessenvironment●Utilization of diverse human resources
and sound business 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)
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6

Medium Term Management Plan
Net Sales(million yen)

FY3/19(result)

FY3/20(result)

FY3/21(plan)Net sales

29,298 million yen

31,719 million yen

33,005 million yen

Ordinary
income1,920 million yen

2,003 million yen

2,153 million yen

6.6%

6.3%

6.5%

Ordinary
income rate
Management
strategy

Expand business scale

Medium Term
Management Plan
(3-year plan)

FY3/21

Profitability x
Growth potential

Digital transformation
Profitability,
efficiency/soundness

FY3/06

FY3/10FY3/15
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FY3/19FY3/217

Fortification of the Governance System

Mission of our corporate group
To improve the satisfaction level of all stakeholders
Shareholder
value

Customer value

Social value

To keep improving corporate value

To offer value unique to our company

To contribute to society

Business
partners

Value creation ⇔ Employees

Actualization of nursery schools
with better quality

Streamlining of use ofmanagerial resources
Structural reform, personnel
development

Expand existing
business

Cement therelation withsociety

Strengthen
management

New growthstrategy

Continuous trusting relationships
with stakeholders

Actualization of management
strategy

Fortification of governance and compliance systems
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8

Transformation into a Company with an Audit and supervisory Committee
As audit and supervisory committee members, who oversee
the execution of duties by directors, serve as members of
the board of directors, enhancing the auditing andsupervising functions of duties by the board of directors.

General Meeting of Shareholders

Shift to a transparent, fair, andvigilant corporate governancestructure
Collaboration

Structure as ofJuly 1, 2020

Comptroller(Appointment / Dismissal)

Accounting
audit

Audit and Supervisory
Committee

Collaboration(Appointment / Dismissal)
President andRepresentative Director

Corporate Planning Div.
 Corporate Planning Dept.
Corporate Communications &Investor Relations
Dept.

Compliance Div.
General Affairs Dept.
Legal Affairs Dept.

Management Div.
Finance and Accounting Dept.
System Dept.

Audit
HR Strategy Div.
HR Dept.
Personnel Development Dept.

Business Planning Div.
Business Development Dept.
Business Planning Dept.

ReportReportGuidance on businessadministration, etc.

Business Companies

Audit

Whistleblowing
systemAdviceLawyers

Internal Audit Office

ReportCompliance Committee

Board ofDirectors

Surveys,confirmation,
instructions

ReportCopyright©JP-HOLDINGS, INC. All Rights Reserved.

Safety Control
Committee
ChildcareCommittee

92

FY3/21 Management Plan

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Concept for Management Policy in the New Management Structure
Industrial trend

Changes in the external environment●As we have entered the age of the declining population, children will decrease
further.
●The impact of COVID-19 is not temporary, but leads to “changes in society andorganizations” and “irreversible business changes.”●Effects of the reform of workstyles promoted by the government on labor-intensive
business●The competition for employing nursery school teachers became fierce mainly in theTokyo Metropolitan Area.
●The impact of COVID-19 is significant, so measures against infection andmanagement systems were fortified at facilities.
●Signs of new childcare and education due to changes in the social environment(online)●Effects of financial policies on subsidies, and prolongation of periods of childcare
leaves

CausesGoals of and problems with our company
To improve profitability (at each facility) and efficiency (business operation)
To vitalize organizations

To exert
comprehensive skills
To enhancecompetitivenessRealization ofsustainable growthDelay in streamlining and systematization of management, operation, and workflow
Necessity to improve employment of appropriate employees, personnel education, andexcessive flat-organization

Establishment of businessareas in which we haveadvantages and ourmanagement

Actualization of acontinuous growth cycle

We will intensively allocate managerial resources to the activities for achieving sustainable growth, improving profitability andvitalizing our organizations, which are current issues, and reform our business administration.
<In FY3/21, we will reform the management of nursery schools, vitalize organizations, and establish new promising businesses.>

Management
PolicyIssues weshould workon

Vitalization oforganizations

Selection andconcentration
Managerial resources (Allocation of humanresources, materials, and funds) to specific areas

Profitability andefficiency

Every employee plays the leading role/Every employee feels
responsible for businessSoundness

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Growth potential
11Management Policy in the New Management StructureManagement reform for achieving sustainable growth and responding to changes in external environments

VisionMeans foractualizing the
VisionTo further improve the quality of childcare = To offer topnotch child-raising services
To build childcare support facilities that would be selected by customers
Selection and concentration: Intensive allocation of managerial resources to reform businessadministration
Vitalization of organizations: Streamlining of management and strengthening of management functions

Response to changes in the market environment1
Majormanagement
strategies

Profitability
andefficiency

2

Soundness

3

Growthpotential

Improvement in revenues from existing businesses, streamlining of business operations,and creation of digital businesses

Cooperation among group companies, exertion of synergy, andvitalization of organizations(Enhancement of employees’ awareness/reform of operational processes)

Fortification of ourbusinessfoundation

Promotion ofdigitalization ofmarketing

Systematization

Strengthen
management

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HR development andmanagement

12Management Strategies
ManagerialreformTo redefine outcomes we should pursue and our vision, strengthen andimprove the revenue base of our existing businesses, and create new
profitable businesses

Business area

Existing business domain

New business domain(State demanded by the times)

Expected
effects

Improvement in profit margin

Sales growthNew
initiatives for
improvement
and reform

Profitability andefficiency

Soundness

Growth potential

To evolve business models, and improve ourvalue to offer and profitability

Development of a working environment, abusiness structure and system responding tochanges in the social environment

Promotion of digitalized business
Further promotion of business or capitalalliance

Improvement in revenues fromexisting businesses

Securing, training, and retentionof personnel

Proper allocation of personnel

Personnel system reform/proper
business environment

Opening in accordance withinvestment standards

Vitalization of organizations
through group restructuring andoperation streamlining＋＋

Promotion of digitalized business(Services, systems, approaches)

Capital alliance (M&A)
Business alliance for new
businesses＋

Response to changes in the business environment
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13

Major Management Strategy (1)To improve profitability and efficiency
By reconsidering our existing business operations and systems, we will
evolve business models, and improve our value to offer and profitability.
To improve profitability and efficiency
 Improvement in revenues from existing businessesTo improve revenues by designating some facilities as the ones that require
intensive measures▶Facilities that require intensive measures (which saw a decline in revenues forthe 2nd consecutive term)▶Facilities that require some measures (which saw a decline in revenues in thecurrent term)▶To close facilities whose revenues dropped due to changes in the businessenvironment, including the situation of children on waiting lists*To close 5 facilities by the end of March 2021

 Design and execution of opening plans in accordance withinvestment standards
Design of new plans based on the analysis of future environments,
including demographics and the market environment▶To narrow down prioritized areas▶To revise development meetings and workflow
Study of the revenue model for responding to changes in childcare
needs▶Study of the revenue structure considering the drop in needs forchildcare for infants aged 0, which was caused by the lengthening of thechildcare leave period (2 years)*To close 1 facility by the end of March 2022
Improvement by the council for improving revenue and expenditure for eachblock
▶If monthly operating income is 10% different from the initial estimate, the cause
and measures will be reported.
▶Intensive measures for improving the performance of facilities requiring suchmeasures and reporting of the progress Discussion on the progressive childcare-related business at existing
facilities
Discussion on new business models utilizing vacant spaces, which
increased due to the decrease of children(Early childhood education, cross-industrial cooperation, etc.)

 Proper allocation of personnel at facilities
To reconsider staff of facilities, and visualize staffing
To adjust staffing in the next term, based on the appropriate staffing(Linked with recruitment plans)

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Major Management Strategy (2)Improvement of soundness
We will develop an environment and a structure to respond to changes in the social environment, etc.

Soundness

 To further secure and train personnel
To strengthen recruitment (online job interview)To introduce the inside of our company and visit schools(graduates will visit their alma mater.)To expand the training structure, such as by levelNo. of mid-career workers employed in the current term: 330(100 in the middle of the term)
As of the end of Sep. 2020: 257 workers employed
No. of new graduates to be employed in the next term: 240
No. of workers employed in FY20: 182
 Enhancement of measures for curbing turnover rate
To enrich the system for tutoring new employeesTo communicate with employees carefully through online
interviews and strengthen follow-up activities▶Turnover rate in the previous term: 13% (around 17% inthis industry)▶We aim to achieve a turnover rate of around 10% for thecurrent term.
 Personnel system reformTo reform the system in line with the job types
To enrich personnel evaluation systems

 Strengthening of HR management
To utilize the talent management system▶Proper allocation of personnel
To improve job rotation, training, and study sessions▶Equalization of tasks, personnel development
 Development of the working environment
To streamline paperwork with ICT

To rationalize installing a system for attendance management
 Structural reformTo reform our business through the restructuring of our group’sbusiness
To improve business operations and conduct cross-sectoral
management
 Fortification of compliance systems
To increase the transparency of governance by establishing theaudit and Supervisor committeeTo enhance the functions of the internal audit office Enrichment of BCP and safety measures
To establish systems for coping with COVID-19 and workflow for
responding to it.
To improve systems for telecommuting
To establish the childcare committee and safety control committee

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Major Management Strategy (2): Concrete Measures●Securing, training, and retention of personnel▶In response to changes in the social environment, we recruit workers
online and by referrals, while introducing the inside of our company andhaving graduates visit their alma mater.
⇒ No. of mid-career workers employed in FY20: 330 (100 in the middleof the term)
As of the end of Sep. 2020: 257 workers employed⇒ No. of new graduates to be employed in FY21: 240
No. of new graduates employed in FY20: 182▶To encourage employees to attend the training for career development(until the end of Mar. 2023）
To develop training systems for each level and for managers▶We aim to achieve a turnover rate of around 10% this term by improving
the tutoring system and energizing communication by utilizing online
interviews, etc.

●Personnel system reform/proper business environment▶To reform the HR systems for on-site employees and staff of theheadquarters, and evaluate, discuss, and reconsider personnel
management from the beginning of the next fiscal year
[Issues and problems](Voices of on-site employees) Evaluation process, roles and salaries,
bonus evaluation(Head Office/Headquarters) Evaluation cycle, roles and salaries, careerdevelopment[Points of reform in the new HR system]●Grading and wage systems for each role and each duty
●Drastic reform of the evaluation system▶To streamline business operations by installing an attendance
management system in cooperation with the System Division, and reducelabor in the headquarters through ICT and RPA●Structural reform (Improvement of business
operations and clarification of roles)
To restructure our group’s business, improve operations, and vitalize organizations withcross-sectoral structures through “selection and concentration”
 Reinforcement of Japan Nursery Service
1) Strengthening of the structure of each blockPersonnel reshuffling for strengthening the capability of management of each facility
and each block in the 6-block system
Strengthening of the structure of the Tokyo block (management, overall control, andsolving problems)
2) Establishment of the Operational Risk Control Division for fortifying the risk
control structure
To establish a new section in management for dealing with infections andemergencies, including COVID-19, at facilities, to strengthen the management structure Reform of the Internal Audit Office for reinforcing thegovernance structure1) Strengthening of the structure of the Internal Audit Office of JP Holdings

 To launch projects for taking important measures
1) To launch group-wide projects for the new businesses “Meal Kits” and“Online Childcare”

 Restructuring of our group’s business and organizations
1) To put together and integrate the businesses of subsidiaries for streamlining
business operations and accelerating response to the inside and the outside of thecompany (reducing back-office costs and clarifying businesses)
J Cast, J Kitchen, J Planning Sale and Japan Nursery Institute for General
Research2) Development of business operations of the development section at Japan
Nursery Institute for General ResearchTo enrich the training business and enhance measures for sales

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Major Management Strategy (3)Growth potential
To change our activities for childcare support from measures for reducing children on waiting
lists to measures for coping with the decrease of children
To offer epoch-making services utilizing digital technologies and systems
To create value by offering seamless services

Growth potential
New business in response to digitalization
 Proposals for new lifestyles toward child-rearing
households-To serve breakfast and supper (meal kits and boxed
meals)
To promote customers to use our services for part oftheir breakfast, supper, and meals on holidays
To sell meal kits so that customers can save time, as
cooking is the most burdensome chore(According to the preliminary survey, 75% ofhouseholds find it troublesome to prepare for meals.)-Digitalization of early childhood education andrelated programs (digital transformation)
To offer childcare and education in a one-stop manner(on demand)-Tebura-de-hoiku (sale of related products)
To sell and provide diapers, etc. used in nurseryschools Online education (In-home childcare service)-Online childcare and educational programs
To improve the life rhythms of children and save the time ofparents
・To offer educational programs utilizing online services

Technical training (online)
Check of staff’s conditions-Online training project, and on-demand saleOnline training mainly for childcare services*Technical training program in cooperation with othercompanies
Sale of products taking advantage of our training-Sale of services for managing staff’s conditions andmeasures Business or capital allianceCapital alliance (M&A) and business alliance for new
businesses

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Major Management Strategy (3): Concrete Measures

Growth potential

 Proposals for new lifestyles toward childrearing households
1) To serve breakfast and supper(meal kits and boxed meals)

Verificationin progress

Sale by EC and product development using customer data

▶To sell meal kits to guardians at nursery schools, to reduce theirburden of planning, purchasing ingredients, and cooking of supper(Order receipt and sales promotion via EC)▶To develop our original products under the supervision of nutritionists,based on the data on orders, household compositions, etc. of
customers▶To launch group-wide projects*We plan to sell boxed meals as well as meal kits. We think of selling
boxed meals as related products for new business partners (school club).

2) Tebura-de-hoiku (sale of products via EC)

Verificationin progress▶To provide diapers, baby wipes, etc. to support childcare▶To sell products developed in cooperation with providers of items
used at nursery schools and childcare goods via EC
To clean bed sheets and towels in place of guardians3) Digitalization of early childhood
education and related programs(digital transformation)

TestmarketingTo adopt a scheme for offering one-stop services for lessons after
nursery schools. We aim to increase next-generation childcare
programs combined with digital content, in cooperation withenterprises that excel in the fields of learning and education.

 Online education
Online education for households rearing
children at homeTestmarketing▶To develop systems (for VTR and online distribution)▶To regularly distribute content for improving the life rhythms ofchildren and offer programs for saving time for chores and work tohouseholds in which parents work from home as a result of thereform of workstyles and households in which children are still too
young to go to nursery school or kindergarten.
▶To launch group-wide projects

 Online training/check of staff’s conditions
1) Improvement in technical training for childcare(in cooperation with other companies)
Verification▶Technical educational program (training) for nursery staff in progress*To improve expertise and quality in cooperation with othercompanies▶To sell our training programs online and on demand
Verification

2) Check of staff’s conditionsin progress▶To analyze the traits of staff members, etc. to grasp how to treat
them and prescribe measures
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Outline of Our Strategy

Expansion of the childcare support businessChanges in social
environment

Digitalization
Recruitment/
education
Digitalized recruitment/training (reducing
travel distance and time)

Early childhood education
with digitalized programsChildcare support
Change in children on waiting lists,
utilization of facilities, early childhood
education, cross-industrial cooperation

New openings
New business
type

Changes inworkstyles

Digital transformation
Core businessChildcare support
business

Early childhood
education
Conducted at existing nurseryschools, school clubs, andchildren’s houses

Online childcare
New early childhood
education program withdigitalized content

Time-saving dishes(Improvement in quality andprofitability)

To solve in-home troubles(Shopping, meals, effective use oftime)

Digital transformation
LifestyleEC business
Provision of solutions

Development of childcare-related products

Product
development

Expandbusiness scale

Expandbusiness areas
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19

3

Measures for Preventing the
Spread of COVID-19

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20

Building a Secure and Safe Structure
Prevent the spread of COVID-19
Respond to requests from the government/local
governments and support telecommuting
Increasing Risk of Operating Facilities(Nursery schools, school clubs and children’shouses)Increasing Risk from Commuting andTraveling(Head Office and Headquarters)

Temporary closure of facilities at the request of local
governments

Telecommuting and staggered working hours

Requests for parents to voluntary refrain from
attending facilities

Response using the Internet

Health maintenance and management of children andemployees
Commuting risks for children and employees

On-site support/Safety measures

Establish a Mental Support Consultation Desk foron-site employees

Build a structure that makes it possible to work inand operate facilities safely and with peace of mind

Review the operations of each facility as far as possible through efforts that give highest priority to
the safety of the children entrusted to us/employees and work style reform
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21

Measures Against COVID-19 (On-site and Headquarters)
To hold managers’ meetings online

Production and distribution of online
intellectual training content

Safety measures by a nursing care team
Cooperation between the operationalteam and municipalities

To hold online meetings of staff ofnursery schools and facilities around
Japan for each regional block

Production and provision of online
intellectual training content to beoffered by childcare facilities tohouseholds staying at home

The leader of nursing staff asks foradvice from experts in infection andproduces guidelines for preventing
infection.

■ Measures against infection
マネージメント研修■ Produced by lecturers■ Discussions for sharing the cases
specialized in English, gymnastics
of support for guardians andand eurhythmics
improving the quality of childcare■ To support communication withbased on safety and reliability
households staying at home

■ To have local governments checkour guidelines in advance■ To explain our policy to guardiansin advance

To open a counselling desk for all onsite employees

In-company mental support
consultation desk operated bychildcare support counsellors andcertified psychotherapists■ Counselling by telephone andonline meeting system■ Any on-site employees canconsult, regardless of job category or
employment status.

Online session for explaining
recruitment of nursery staff

Online job interview

Online job interview utilizing online
meeting tools■ Candidates can talk sufficiently
and deeply with not only recruiting
staff, but also nursery school
directors, who have plenty ofexperience of childcare.

To hold “online session for explaining
recruitment of nursery staff” by utilizing online
meeting tools
Participants can ask questions from anywhere
as if they were in a nursery school.
■ Participants can participate from anywhere,
including their houses.
■ To introduce the characteristics, facilities, etc.
of our childcare services with the images takenwith a 360-degree camera

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4

2Q FY3/21 Results

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2Q FY3/21 Results●Net sales grew year on year
For preventing the spread of COVID-19, some facilities were temporarily closed during aperiod from the declaration of a state of emergency on April 7, 2020 to its lifting at the endof May, so the lunch fees collected directly from guardians, the revenues from sale ofgoods, including photos, etc. decreased. However, sales grew year on year, as new
facilities were opened, a Tokyo licensed nurseryschool became a licensed nursery school, and more children were accepted by existing
facilities.

Net Sales

15,955 million yen+2.8% YoY

Operating
Income632 million yen+27.5% YoY●Operating income rose year on year
Revenues dropped due to the measures for preventing the spread of COVID-19, but grossprofit increased, because sales grew as mentioned above, and we strived to reduce costs
for ingredients for lunch, etc. as some facilities were temporarily closed in accordance withthe request by local governments, and operating income rose year on year, thanks to thecurtailment of SG&A.

●Ordinary income and net income attributable to owners of parent
increased year on yearOrdinary income increased year on year, thanks to the above-mentioned rise inoperating income and the increase of subsidies, etc. due to the increase of dormitory
occupants.
Net income attributable to owners of parent increased year on year, although an
extraordinary loss of 115 million yen was posted because we will close 5 Tokyo licensed
nursery schools (4 schools at the end of the current term and 1 school at the end of thefollowing term) and 1 company-led nursery school (at the end of the current term) in
response to the worsening of revenues caused by the changes in the businessenvironment, including the situation of children on waiting lists.

●Development of new facilities progressed as planned

Ordinary Income

955 million yen+28.4% YoYOpening of New
Facilities
Nursery schools: 4
School clubs: 5*1 licensed nursery school

Net Income Attributableto Owners of Parent

551 million yen+6.8% YoY

Number ofChildrenAccepted to
Nursery Schools

15,517+266 YoY

Opened 4 nursery schools and 5 school clubs.
*1 nursery school became a licensed nursery school.
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2Q FY3/21 Profit and Loss Statement
2Q FY3/20
Amount2Q FY3/21

Component
Ratio
(%)

(Million Yen)

Amount(Million Yen)

Year on Year Comparison

Component
Ratio
(%)

(Million Yen)

Component
Ratio
(%)

AmountNet sales

15,517100.0

15,955

100.0

438

2.8

Cost of sales

13,66888.1

13,824

86.6

156

1.1

Gross profit

1,849

11.9

2,131

13.4

281

15.2

SG & A expenses

1,353

8.7

1,498

9.4

145

10.8

Operating income

496

3.2

632

4.0

136

27.5

Non-operating income

291

1.9

355

2.2

63

21.8

Non-operating expenses

43

0.3

32

0.2

-11

-25.8

Ordinary income

744

4.8

955

6.0

211

28.4

Net income attributable toowners of parent

516

3.3

551

3.5

35

6.8

(Unit: million yen/ Rounded down to the nearest million yen. )Copyright©JP-HOLDINGS, INC. All Rights Reserved.

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2Q FY3/21 Factors for Changes in Net Sales
Net sales

Despite the effects of measures for preventing the spread of
COVID-19, sales grew 2.8%, as new facilities were opened
and more children were accepted.
15,955
111
202

313

15,517

Net
sales

-188
Decrease oflunch fees, etc.
collected
directly from
guardians in
the wake of
COVID-19

Increase due toopening of new
facilities andtransition tolicensed facility

Increase in thenumber ofchildren
accepted inexisting
facilities

Additional
subsidies fornutritionists,
authentication
refunds,
compensation,
etc.

Net
sales

2Q FY3/20

2Q FY3/21(Unit: Million yen/rounded down to the nearest million yen)
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2Q FY3/21 Factors for Changes in Operating Income
OperatingincomeDespite the effects of measures for preventing the spread of COVID-19,
profit increased, as new facilities were opened, more children were accepted,
and we strived to curtail costs and SG&A by reducing the expenses for
ingredients when facilities were temporarily closed.

281

145

SG&A
Gross profit
Augmentation of costs
for system installationand personnel costs
for management

496

Operatingincome632

Increased gross profit, as
new facilities were opened,
more children were accepted,
and costs were reduced

Operatingincome2Q FY3/20

2Q FY3/21(Unit: Million yen/rounded down to the nearest million yen)
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2Q FY3/21 Factors for Changes in Ordinary Income
Ordinary
incomeProfit grew on the back of a rise in operating income andsubsidy following the increase of dormitory occupants.

63

134

744

Ordinary
incomeIncreased operating
income, as new
facilities were opened,
more children were
accepted, andexpenses werecurtailed

Non-operating income
Increased subsidies fordormitory expenses

-12

955

Non-operating
expenses
Decrease in interests
paid

Ordinary
income2Q FY3/20

2Q FY3/21(Unit: Million yen/rounded down to the nearest million yen)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

28

2Q FY3/21 Financial Condition
Assets increased, due to the increase of borrowings for costs for installing equipment
for opening new facilities and the rise in cash and deposits.
Financial Condition

Liabilities, Net Assets, Shareholders Equity Ratio

End of September 2020 *( ) = Difference with the end of March 2020

Liabilities－

Net Assets－－ Equity Ratio (%)

Liabilities
Assets27,382 million yen(+1,259 million yen)

17,459 million yen

17,459 million yen(+973 million yen)

36.9

Net assets
9,922 million yen

9,636 million yen

9,922 million yen

End of FY3/20

End of Sep. FY3/21(+286 million yen)
End of Mar. 2020

End of Sep. 2020

Current assets

9,788

11,859Fixed assets

16,334

15,522

Total assets

26,112

27,382Current
liabilities

5,920

5,958

Fixed liabilities

10,565

11,500Total liabilities

16,486

17,459Total net assets

9,636

9,922

Million yen

16,486 million yen

36.2

Cash and deposits
2,302 million yen
Inventories-81 million yen
Depreciation/amortization and impairment loss
-362 million yen
Construction in progress-490 million yen

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

247 million yen-334 million yen-84 million yen
849 million yen

Retained earnings
Cumulative other comprehensive income

210 million yen
76 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.)

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

29

2Q FY3/21 Balance Sheet(Million yen)

End-FY3/20(Mar. 31, 2020)

2Q FY3/21

Change9,788

11,859

2,071

6,206
111

8,508
29

2,302
-81

16,334

15,522

-812

8,620
247
7,466

7,871
229
7,422

-749
-18
-44

26,122

27,382

1,259

5,920

5,958

37

(Current portion of long-term loans
payable)

1,639

1,887

247

(Accounts payable)

1,535

1,200

-334

10,565

11,500935

9,479

10,329849

Total liabilities

16,486

17,459973

Total net assets

9,636

9,922

286

26,122

27,382

1,259

Total current assets
Cash and deposits

Accounts receivable - otherTotal fixed assets
Total tangible fixed assets
Total intangible fixed assets
Total Investments and other assets
Total assets

Total Current liabilities

Total fixed liabilities
Long-term loans payable

Total liabilities and net assets(Rounded down to the nearest million yen)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

30

2Q FY3/21 Statement of Cash Flows(Million yen) 2Q FY3/20

2Q FY3/21

Change

703

1,107

404

(Decrease (increase) in inventory)

739
354
3
104

841
353
115
81

101
-1
112
-22

(Increase (decrease) in accounts payable - other and accrued
expenses)

-344

-236

107

(Income taxes (paid) refund)

-402

-402

-

1,110

442

-668

-177

-85

91

-2,415759

3,174-1,500700-1,374

2,000
-902

1,500
1,300
471

-601

2,309

2,910

6,214

8,515

2,300

Cash flows from operating activities(Income before income taxes and minority interests)(Depreciation and amortization)(Impairment loss)

Cash flows from investing activities(Purchase of property, plant and equipment)

Cash flows from financing activities(Proceeds from short-term loans payable)(Repayments of long-term loans payable)(Repayments of long-term loans payable)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period(Rounded down to the nearest million yen)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

31

5

FY3/21 Forecast

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

32

FY3/20 Forecast
FY3/20
ActualYear on Year
Comparison (%)

ChangeFY3/21 Forecast

Net sales (million yen)

31,71933,005

1,285

4.1%

Operating income (million yen)

1,538

1,577

39

2.5%

Ordinary income (million yen)

2,003

2,153

149

7.5%

Net income attributable to owners of parent (million
yen)

1,122

1,163

40

3.6%

Net income per share (yen)

12.81

13.30

0.49

－

Dividends (yen)

3.90

3.90

±0

－

Dividend payout ratio (%)

30.4

29.3

△1.1

－

△6

－

3

－

4
Expected opening of nursery school (school)10

Switch to licensed
nursery school: 1

Expected consignment of school clubs andchildren’s houses (facility)

2

5(Rounded down to the nearest million yen. Rate of change is rounded off to the nearest first decimal point place.)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

33

Dividend Situation●Dividend Policy
The Company pays a performance-based dividend with a consolidated payout ratio ofaround 30% while securing the internal reserves necessary to develop business in the
future and strengthen our management structure. In this term, the Company will pay a
dividend of 3.90 yen – the same amount as in the previous term considering the impact of
COVID-19.

2.50 yen
Dividend
payout ratio
31.8%
FY3/173.50 yen

3.70

3.90 yen

3.90 yen

yen

Dividend
payout ratio
32.7%

Dividend
payout ratio
29.7%

Dividend
payout ratio
30.4%

Dividend
payout ratio
29.3%

FY3/18

FY3/19FY3/20(Planned)

FY3/21(Forecast)*The year-end dividend for FY3/20 will be the dividend per share if approval is obtained at the Company’s 28th
Ordinary General Meeting of Shareholders.

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

34

6

APPENDIX

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

35

Current Waiting List Situation
National Waiting List Map (April 1, 2020)


The number of children on waiting lists as of Apr. 1,

2020 is 12,439 (4,333 decrease YoY).
The problem of children on waiting lists remains
serious. This is especially so in the Tokyo
metropolitan area and prefectures where major
cities (e.g. ordinance-designated cities) are located.
(Refer to the map on the right.)

Current as of April 1, 2020

No of Prefectures

0

(10)

1 or more but less than 100(19)100 or more but less than 500(12)500 or more but less than 1,000(1)1,000 or more

(5)

Prefecture

Hokkaido
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima
KagawaEhime
Kochi
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
OkinawaTotal

No. of Children on
Waiting List

134
0
58
340
22
0
141
193
34
14
1,083
833
2,343
496
3
0
0
0
0
46
0
122
155
81
495
48
348
1,528
201
35
0
0
403
39
17
61
64
55
28
1,189
49
0
70
10
14
322
1,365
12,439Change

-18
0
-117
-243
-43
-45
-133
-152
-18
-7
-125
-187
-1,347
-254
1
0
0
-10
0
-34
-2
-90
-103
-28
36
-38
-241
-41
3
-19
0
0
-177
-89
-23
-12
-118
-48
-7
-43
25
-70
-108
-15
-29
-27
-337
-4,333

Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2020)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

36

Changes in the External Environment (Future Forecast of Nursery School Needs)

If we compare nursery school needs (number increased in the period) over five years from 2015 to 2020 and 2020 to 2025, the rate ofincrease will reduce, but there will be little change in demand (decreasing number of kindergartens).



Nursery school needs for 0 to 2 year old infants remain high in Tokyo where there are many children on waiting lists.

Tokyo (Birth High/Employment High Case)

Nationwide (Birth Medium/Employment High Case)■Nursery schools (0 to 2 years old) ■Nursery schools (3 to 5 years old) ■Kindergartens (3 to 5 years old)

356

177

Nursery schoolneeds: Increase by
90,000 children

Nursery school needs:
Increase by 400,000
children(Tens ofthousandsof children)

373

174

369

161

385

151

383

115

126

53

134

114

368

85

368

66

371

369

49

35

150

144
273

148

154

38.2

162

63

74

89

110

33.8

34.4

166
17.9

17.1

282

134

Nursery schoolneeds: Increase by
18,000 children

15

160

168

2000 2005 2010 2015 2019 2020 2025 2030 2035 2040
Forecast
ActualSource: The Japan Research Institute, Limited’s “Future Outlook for Childcare Needs and How to Respond” and the Child and Family Policy Bureau of the
Ministry of Health, Labour and Welfare’s “Summary of the Nursery School Related Situation (April 2019)”

43.0

42.9

42.7

42.7

12.7

10.9

9.4

8

14.6

14.6

14.7

18.8

20

※

15.5
12.4

148

43.0

16.8
17.1

233
123

Nursery schoolneeds: Increase by
69,000 children

45.9

31.6

158
136

387

(Tens of thousandsof children)

9.1

9.8

5.4

6.1

10.2
7

21.5
9.1

14

14.2

28.4

30.2

14.4

16

※

15.4

14.4

17.5

2000 2005 2010 2015 2019 2020 2025 2030 2035 2040
ActualForecast

Source: The Japan Research Institute, Limited’s “Future Outlook for Childcare Needs and How to Respond” and the Tokyo
Metropolitan Government Bureau of Social Welfare and Public Health’s “Childcare Service Situation in Tokyo”

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

37

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 August
2020: 2.38 times)
 Jobs to applicants ratio of Tokyo had the trend of decrease from 5.71 as of Dec. 2019, but turned torise to 3.55 as of Aug. 2020.

Effective Opening to Application Ratio for Nursery School teachers(X)Nationwide

Tokyo

8
7

Dec:
5.71

6
5

Jan:
3.86

4

Aug:
3.55

3
2

Aug:
2.38

1
0
Source: Ministry of Health, Labour and Welfare Employment Security Bureau’s General job placements (Report on Employment Service)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

38

【Supplementary Material】Reacruitment of Nursery School Teachers
FY3/16

Nursery School
Teacher
Non qualified

FY3/17

FY3/18

FY3/19FY3/21Joined on
the end of Spt.

FY3/20New
Graduates

178

１９7

247

276

248

Mid career
employment

219

２４１

327

325

269

New
Graduates

－

23

32

46

26

188
257
(Plan: 330)

9

* 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.
（人）

Trend of Employee Numbers in childrearing Business

7000(*Include employees of school clubs stuffs, nutritionists, etc. other than nursery school teachers)
子育て支援事業 社員■ Part-time workers
子育て支援事業 アルバイト

6000■ Employees
5000
4000
3000
2000
1000
0
FY3/0８

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

FY3/17

FY3/18

FY3/19FY3/2039

【Supplementary Material】Our Plan to Secure Nursery School Teachers Utilize national and municipal subsidy and continue to improve wages.
 From Nov 2017, additional measures were introduced ※Provided retroactively from Apr. 2017(1)Implemented salary increase by regions(Max 480 thousand ¥/y)(2)Newly invented salary by roles(Max 480 thousand ¥/y)(3)Salary increase for directors and chiefs of nurseries(300 thousand ¥/y) The annual income for nursery school teachers in 2019 was 4,018,000 yen in the
Company on average against the national average of 3,635,000 yen. This is 383,000
yen more compared to the national average.
(10,000 yen)

420
410
400
390
380
370
360
350
340
330
320
310
300
290
280

AVERAGE ANNUAL SALARY OF NURSERY SCHOOL TEACHERS
400.7

401.8

The Company’s average

National average

374.3
354.1

357.9

358.6

363.5

342.1
328.4

332.4
324.9

324.2

331.4

323.9

323.3

326.8

316.7

322.5
314.6

310.8

2010

2011

315.0

300.9

309.8

287.1

2008

2009

2012

2013

2014

2015

2016

2017

2018

2019

*As for national average, JPHD made numbers based on Ministry of Health, Labour and Welfare”Basic Survey on Wage Structure”「 Contractual cash earnings as of each June 」×12＋「 Annual special cash earnings of each previous year 」*JPHD’s average annual salary is based on full year base.

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

40

Profile
Company Name

JP-HOLDINGS, INC.

Listed Market

First Section of the Tokyo Stock Exchange (Securities code: 2749)

Location
Date of
Establishment
CapitalHead Office: 17F Chikusa New Tower Bldg., 3-15-31 Aoi, Higashi-ku, Nagoya-shi Aichi
Tokyo Office: 5F Shinagawa Season Terrace, 1-2-70 Konan, Minato-ku Tokyo
March 31, 1993
1,603.955 million yen

Representative

Koichiro Furukawa, President and Representative Director

No. of Employees

Employees: 3,481 / Part-time workers: 2,520 *As of March.-end 2019Japan Nursery Service Inc. (Capital stock: 99 million yen / Wholly owned subsidiary)
J Kitchen Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
J Cast Inc. (Capital stock: 10.4 million yen / Wholly owned subsidiary)

Consolidated
Subsidiaries

J Planning Sale Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
Japan Nursery Institute for General Research Inc. (Capital stock: 10 million yen / Wholly owned
subsidiary)
Amenity Life Inc. (Capital stock: 70 million yen / Wholly owned subsidiary)

COHAS VIETNAM CO., LTD (Capital stock: 6,834,million VND / Wholly owned subsidiary）
Nursery Service (Japan Nursery Service, Amenity Life, and COHAS VIETNAM )Gymnastics, English and Eurhythmics Schools Contracting Service (J Cast)
Business Areas

Food Service (J Kitchen)
Distribution Service (J Planning Sale)
Researching , Training and Consulting Service (Japan Nursery Institute for General Research)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

41

Corporate Philosophy
 Corporate Message
For the smiles of children…
Smiles of children: This is our pride that cannot be replaced. We always provide childcare
where children who will lead the future can develop generosity as well as words andemotions to express themselves in a safe environment.
We strive for continual self-improvement to be models to children. We also strive toconnect with children with passion and a sense of responsibility, and to acquire strong
ethical values and social conscience.

 Management Philosophy
1.Number one priority: Safety and security
2.Childcare that remains memorable forever to users
3.Provision of high-quality services needed by users

4.Creation of work-friendly environments
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

42

Business Summary Operation of Childrearing Facilities (Public and Private)
Public Facilities = Subsidy from Gov’t and Municipalities
Licensed
Nursery School

Private Facilities= Subsidy from Gov’t
and Municipalities No

YesTokyo Licensed
Nursery School

School Club,Children's House

Municipality

Municipality

Private School Club

ParentMunicipality

ParentLicensed schools(Public-private management)

Licensed schools(Private management)

Revenue from User

Revenue from User

(Burden of Actual Cost)(Burden of Actual Cost)

Structureof SalesSubsidy（DesignatedManagement Fee）
※depends on municipality

Subsidy（Official Price）+（Addition by
Municipality）※depends on municipality

JP

Contract

ParentUsage FeeJP

ParentUsage FeeContract

Contract
Form

JP

JP

Revenue from User
Revenue from User
(Childcare Charge +Burden of Actual Cost)

Subsidy（Tokyo Met. Gov’t）+（Addition by
Municipality）(Burden of Actual Cost)

Subsidy（ DesignatedManagement Fee）
or
（Trustee Fee）

Revenue from
User
(Childcare Charge +Burden of Actual
Cost）※depends on municipality※depends on municipality

Copyright©JP-HOLDINGS,INC All Rights Reserved.

43

Comparison of Kindergartens, Nursery Schools and Licensed Children’s Schools
Kindergarten

Nursery School

Licensed Children’s School(Kindergarten/Nursery School
Cooperation type)Act on Child Education and Childcare Support (Defines the framework of cross-ministerial and unified payments in
the Cabinet Office)Section 3 of the School Education
Act(Under the jurisdiction of the
Ministry of Education, Culture,
Sports, Science and Technology)

Article 7 (1) of the Child Welfare Act(Under the jurisdiction of the Ministryof Health, Labour and Welfare)

Article 7 (1) of the Child Welfare
Act
Article 2 (7) of the Licensed
Children’s School Law(Under the jurisdiction of the
Ministry of Education, Culture,
Sports, Science and Technology &the Ministry of Health, Labour andWelfare)Type of Facility

SchoolChild welfare facility

School and child welfare facility

Target Children*

1st certification

2nd and 3rd certification

1st, 2nd and 3rd certification

Basis of Education
and Childcare
Content

Kindergarten Education Guidelines

Nursery School Childcare Guidelines

Licensed Children’s School
Education and Childcare Guidelines

8 hours as standard

Hours depending on the children (8hours for children requiring
childcare and 4 hours for children
requiring education) as standard

Underlying
Laws/Regulations

Daily Education andChildcare Time

4 hours as standard

Number of
Education and
Depending on the regional
39 weeks or more
No stipulations
conditions
Childcare Days in aYear
*1st certification: Children of 3 years old or older requiring education / 2nd certification: Children of 3 years old or older requiring childcare / 3rd certification:
Children under 3 years old requiring childcare
Copyright©JP-HOLDINGS,INC All Rights Reserved.

44

Overview of School Clubs and Children’s Houses
School Clubs (Broad Definition)
Children’s Houses

After-school Children’s Health
Promotion Business

After-school Children’s Classroom
Promotion Business

Underlying
Laws/Regulations

Article 6-3 (2) of the Child Welfare Act(Under the jurisdiction of the Ministry of
Health, Labour and Welfare)

Implementation of After-school Children’s
Plan Promotion Business(Under the jurisdiction of the Ministry of
Education, Culture, Sports, Science andTechnology)

Article 40 of the Child Welfare Act(Under the jurisdiction of the
Ministry of Health, Labour andWelfare)Nature of the Facility

The aim is to provide a place forappropriate fun and lifestyles for children
enrolled in elementary school whoseparents are not at home after school due
to work and foster them healthily byusing a facility such as child welfare
facilities after school.

This aims to establish safe and secure activity
bases (locations) for children using spareclassrooms in schools after hours or on theweekends. These provide opportunities forlearning and a variety of experiences/exchange
activities for children on a regular andcontinuous basis with the participation of local
residents.

This aims to offer healthy fun tochildren in the community, promote
their health and nurture emotions.
(one of children’s recreational
facilities)

Target Children

Grades 1 to 3 in elementary school(However, it is also possible to target
children in special support elementary
schools and elementary school children ingrades 4 and above)

All children in the community (regardless ofwhether infants, children or students andregardless of whether their parents work ornot)

All children under the age of 18

Basis of Education andChildcare Content

After-school Children’s Health
Promotion Business Action Guidelines
After-school Children’s Club Guidelines

After-school Children’s Classroom Promotion
Business Action Guidelines

Children’s House Guidelines

Daily Education andChildcare Time

3 hours or more on average(However, this is 8 hours or more as a
general rule on Saturdays, school
holidays and long-term holiday periods)

Number of Education
and Childcare Days ina Year250 days or more as a general rule
(However, this can be 200 days or more
depending on the form of the user’s
needs)

4 hours or less on average(However, this is 8 hours or less as a generalrule on Saturdays, school holidays and longterm holiday periods)

Set in accordance with thesituation in the community (e.g. theage of the target children andconvenience of parents)

Less than 250 days as a general rule

Copyright©JP-HOLDINGS,INC All Rights Reserved.

45

Group Business Overview (Composition of Internal/External Transactions)
JP-HOLDINGS, INC.

Internal/ExternalChildcare Support
Business
Business Support

Internal
Overseas
Business Support
External
New Nursery School
Opening Support
Childcare Support
Business
ConsultingChildcare Support Business
Nursery schools: 208
Children’s houses: 11
School clubs: 77
Private school clubs: 1

Amenity Life Inc.
Childcare support Business
Nursery schools: 5

Overseas Business
COHAS VIETNAM CO.,LTD

Childcare Support Business

J Kitchen Inc.
Catering Business(Lunch provisionand contracting)Consigned
service

J Cast Inc.
English, Gymnastics andEurhythmics(Teacher dispatch andclassrooms)

External
sales

J Planning Sale Inc.
Goods Sales
External(Childcare equipment sales
and graduation
photographs)

New Business
Development
Provision of expertise
Product and systemdevelopment

External companies

Consulting BusinessJapan Nursery Service Inc.

Provision of resources within the groupJapan Nursery Institutefor General Research
Inc.

Provision of resources within the group

Consulting on the opening of newnursery schools

External companies

Domestic Business

External
sales

Kindergarten: 1

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

46

Status of New Openings as of the end of September 2020
No. of Facilities Operated
as of the end of September
2020
Nursery schools
213
School clubs
77
Children’s houses 11*Asc Higashi-ojima Nursery School (Tokyo licensed
nursery school) became a licensed nursery school.
Private school club 1*Obu Municipal Kyowahigashi Nursery School (publicprivate management) transitioned to private management, Kindergarten
operated as Asc Kyowahigashi Nursery School.
(Overseas Facility) 1*Three private school clubs operated by Amenity Life Inc.
Total：303(LT Kids Tsurugamine, LT Kids Futamatagawa and Elfi

FY 3/20 New Openings
Nursery Schools
4
School Clubs
5
Total 9Kids Ryokuen-toshi) closed at the end of March 2020.

Tokyo:
4 licensed nursery schools
・Asc Senjyu Nursery School・Asc Toneri Ekimae Nursery School・Asc Oizumigakuen Nursery School・Asc Nerima 3-chome Nursery School

Tokyo:
5 school clubs
•
•
•
•
•

Wakuwaku Yanagida Hiroba/Yanagida Midori Club No. 2
Wakuwaku Yoniwa Hiroba/Yoniwa Elementary School Icho
Club No. 2
Chofu Municipal Jindaiji Children’s House & School Club
Mitaka Municipal Minamiura School Club Annex A
Mitaka Municipal Elementary School No. 4 School Club B

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

47

No. of facilities Operated as of the End of September 2020/
No. of Facilities Operated by Region

Operate 303 facilities as of the end of September 2020
Hokkaido

TohokuLicensed nurseryschools: 3

Licensed nurseryschools: 11

Kanto
Kinki

Lic. nursery schools: 151
Non-lic. nursery schools: 23
School clubs: 74
Children’s houses: 5
Private school clubs: 1

Licensed nurseryschools: 9

Kyushu・Okinawa
Licensed
nursery schools: 5
Company-led
nurseries: 2

Vietnam
Kindergarten:1

Chubu
Licensed
nursery schools: 9
School clubs: 3
Children’s houses: 6

Nursery schools 213, School clubs 77, Children’s houses 11
Private school club 1, Kindergarten (Overseas Facility)1*Asc Higashi-ojima Nursery School (Tokyo licensed nursery school) became a licensed nursery school.
*Obu Municipal Kyowahigashi Nursery School (public-private management) transitioned to private management, operated as Asc Kyowahigashi Nursery School.
*Three private school clubs operated by Amenity Life Inc. (LT Kids Tsurugamine, LT Kids Futamatagawa and Elfi Kids Ryokuen-toshi) closed at the end of March 2020.
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

48

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

Sep. 20

Licensed Nursery Schools(Public-private management)

10

11

14

16

14

10

10

11

12

12

11

Licensed Nursery Schools(Private management)

43

61

71

85

102

118

136

148

160

171

177

2

0

0

Small-scale Nursery Schools
Tokyo Licensed Schools

26

26

26

26

26

26

23

21

21

20

19

Company-led Nurseries

0

0

0

0

0

0

0

0

2

2

2

4

4

4

4

4

1

0

0

0

0

0

0

0

0

0

0

4

3

3

3

4

4

37

39

40

43

46

55

63

71

72

72

77

Children's Houses

9

7

8

8

8

10

12

12

11

11

11

Private School Clubs

0

0

0

0

0

0

4

5

5

4

1

Overseas Facility

0

0

0

0

0

0

0

1

1

1

1

129

148

163

182

200

224

251

272

289

297

303

Non-licensed Municipality
Authorized
Non-licensed Othernonlicensed
School Clubs

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

TREND OF NURSERIES AND CHILDREN
Non-licensed Othernon-licensed

Number of facilities

Number of Children

300

Non-licensed Municipality Authorized

250

Company-led Nurseries

200

Tokyo Licensed Schools

150

Small-scale Nursery Schools

100

Licensed Nursery Schools(Private management)
Licensed Nursery Schools(Public-private management)

50

14,058 14,350

6,956

8,133

9,350

10,461

11,192

15,323 15,517

12,375

18000
16000

14000
12000
10000
8000

5,500

6000
4000
2000

0

0
FY 3/11

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

FY 3/18

FY 3/19

FY 3/20

Sep. 2049

FY3/21 Quarterly Results
Net Sales
4Q
2Q

Operating Income
3Q

4Q

3Q

1Q

2Q

1Q

Results:
31,719Net Income Attributable to
Owners of Parent

Ordinary Income
4Q
2Q

3Q
1Q

Results:
2,003

4Q

3Q

2Q

1Q

Results:
1,538

Results:
1,122

2Q results:
15,955

2Q results:
955
2Q results:
632

FY3/202Q FY3/21

FY3/202Q FY3/21

2Q results:
551

FY3/202Q FY3/21

FY3/202Q FY3/21(Unit: Million yen)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

50

Consolidated Results (Highlights)
FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY 3/20
Net sales(million yen)
Operating income(million yen)
Ordinary income(million yen)
Net income
attributable to ownersof parent(million yen)

8,194

Net income per share(Yen)

9,166 11,867 13,789 15,747 17,868 20,552 22,799

26,779 29,298 31,719

738

839

1,114

1,285

1,234

1,345

1,732

1,168

1,303

1,531

1,538

800

866

1,150

1,325

1,460

1,550

1,781

1,350

1,582

1,920

2,003

444

500

653

717

837

904

1,071

661

910

1,071

1,122

6.06

6.67

7.83

8.60

10.03

10.84

12.84

7.87

10.70

12.44

12.81

* Net income per share is the amount that reflects the stock split.
(million yen)(million yen)

35,0002500
Net sales(million yen)

30,000Operating income(million yen)

Ordinary income(million yen)
2000

25,0001500

20,00015,0001000

10,000
500
5,000
0

0
FY 3/9FY 3/10FY 3/11

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

Copyright©JP-HOLDINGS,INC All Rights Reserved.

FY 3/18

FY 3/19

FY 3/2051

Consolidated Results (Balance Sheet / Statement of Cash Flows)
FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20
Total assets(million yen)

5,763

9,432

9,808 10,876 13,521 18,882 21,126 24,002

25,761 28,255 26,122

Net assets(million yen)

1,903

3,559

3,977

4,452

5,034

5,606

6,279

6,854

7,756

8,950

9,636

Shareholders’ equity
ratio
(%)

32.9

37.7

40.5

40.9

37.2

29.7

29.7

28.5

30.1

31.7

36.9

FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20
Cash flows fromoperating activities(million yen)

1,878

1,865

1,829

2,320

- 906 - 1,808- 821 - 1,268 - 3,638 - 3,959 - 2,449 - 3,305- 1,292

- 940

418

Cash flows fromfinancing activities(million yen)

412

2,473

- 219

514

1,220

3,748

1,553

1,646

- 135

1,475

-3,349Year-end balance of
cash and cash
equivalents(million yen)

1,022

2,602

2,768

3,188

1,808

2,891

3,798

4,017

4,455

6,816

6,206

Cash flows frominvesting activities(million yen)

378

915

1,205

1,173

1,038

1,294

1,804

Copyright©JP-HOLDINGS,INC All Rights Reserved.

52

Dividends
The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio of around
30% while maintaining the necessary internal reserves for future business development and to strengthen ourmanagement structure.

FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

Amount ofdividend per
share
(yen)

2.00

Payout ratio
(%)

33.0

2.90

3.00

Commemor
ative
dividend:
0.50 yen

Commemor
ative
dividend:
0.50 yen

43.4

38.3

3.20

3.60

4.00

5.00

2.50

3.50

3.70

3.90

37.2

35.9

36.9

38.9

31.8

32.7

29.7

30.4

The amount of dividend per share reflects the stock split.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

53

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 Communications & Investor Relations Div.
TEL: 03-6433-9515 e-mail : jphd_pr@jp-holdings.co.jp

Copyright©JP-HOLDINGS,INC All Rights Reserved.