Summary of Business Results for the Fiscal Year Ended March 31, 2018
[Japan GAAP] (Consolidated)
May 9, 2018
Company
Listed on the TSE 1
JP-HOLDINGS, INC.
Stock Code2749
URL: http://www.jp-holdings. co.jp
Representative
Kazuhiro Ogita, President and Representative Director
C o n t a c t
Mika Matsumiya, General Manager of Administration Div.
T E L: +81-52-933-5419
Expected date of annual shareholders’ meeting: June 28, 2018
Expected starting date of dividend payment: June 29, 2018
Expected date of filing of annual securities report: June 29, 2018
Preparation of supplementary financial document: Yes
Results briefing: Yes (for institutional investors, analysts and individual investors)（Rounded down to million yen）

１. Consolidated business results for the fiscal year ended March 2018
(April 1, 2017 through March 31, 2018)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Million yen% Million yen
Year ended Mar. 2018
26,77917.5
1,303
Year ended Mar. 2017
22,79910.9
1,168(Note) Comprehensive income:Year ended March 2018: 888 million yen (31.5%)
Year ended March 2017: 675 million yen (-32.9%)
Net income
per share

Diluted net income
per share

Yen
Year ended Mar. 2018
10.70
Year ended Mar. 2017
7.87
(Reference) Investment earnings/loss on equity-method:Year ended March 2018: -25 million yen
Year ended March 2017: - million yen

Net income attributable toowners of parent

Ordinary income

%
11.5
-32.5

Million yen
1,582
1,350

Return on
equity

Yen
-

%
12.5
10.1

%
17.1
-24.2

Million yen
910
661

Ratio of ordinary
income to total
assets
%
6.4
6.0

%
37.6
-38.3

Ratio of operating
income to net sales
%
4.9
5.1

(2) Consolidated financial position
Total assets
Million yen
25,761
24,002As of Mar. 31, 2018
As of Mar. 31, 2017

Net assets
Million yen
7,756
6,854

Shareholders’ equity
ratio

Net assets per
share
%

Yen

30.1
28.5

90.63
80.89

Cash flows fromfinancing activities
Million yen
-135
1,646

Cash and cash equivalents
at the end of period
Million yen
4,455
4,017

(Reference) Shareholders’ equity:
As of March 31, 2018: 7,752 million yen
As of March 31, 2017: 6,850 million yen(3) Consolidated results of cash flows

Year ended Mar. 2018Year ended Mar. 2017

Cash flows fromoperating activities
Million yen
1,865
1,878

Cash flows frominvesting activities
Million yen-1,292-3,305

2. Dividends
Annual dividend
End of
1Q

End of2Q

End of3Q

Year-end

Total

Total
dividend(Total)Dividend
payout ratio(Consolidated)

Rate of total
dividend to
net assets(Consolidated)
%
3.2
4.1

Yen
Yen
Yen
Yen
Yen
Million yen%
Year ended Mar. 2017
0.00
2.50
2.50
219
31.8
Year ended Mar. 2018
0.00
3.50
3.50
307
32.7
Year ending Mar. 2019
(forecast)(Note) The total amount of dividends includes 7 million yen for the fiscal year ended March 2017 and 8 million yen for the fiscal year ended
March 2018, as the dividend on the company's share held by Trust & Custody Services Bank, Ltd. as trust property of "Stock Benefit Trust(Employee Stock Ownership Plan)".
The dividend forecast for the fiscal year ending March 2019 has not yet been determined as it is difficult to predict the business results forthe fiscal year ending March 2019.

3．Forecast of consolidated business results for the fiscal year ending March 2019
(April 1, 2018 through March 31, 2019)
The Company received a proposal regarding the appointment of directors from a shareholder as a bill for the Annual
General Meeting of Shareholders scheduled to be held in June 2018, and there are many uncertainties about the
future management structure up to now. Accordingly, it is difficult to forecast business performance. The Company
will announce its consolidated business forecasts, when it becomes possible to estimate the business performancereasonably.

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes
in the scope of consolidation): None
(2) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: None: None: None(3) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included)
As of March 31, 201887,849,400 shares
As of March 31, 201787,849,400 shares② Treasury stock at the end of period:
As of March 31, 2018
2,315,806 shares
As of March 31, 2017
3,164,106 shares③ Average number of stock during period
Year ended March 31, 201885,117,525 sharesYear ended March 31, 201784,093,963 shares(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and theaverage number of stock during period includes the company's shares held by Trust & Custody Services Bank, Ltd. as
trust property of "Stock Benefit Trust (Employee Stock Ownership Plan)".

(Reference) Summary of non-consolidated business results
1. Non-consolidated business results for the fiscal year ended March 2018
(April 1, 2017 through March 31, 2018)(1) Non-consolidated results of operations

Year ended Mar. 2018Year ended Mar. 2017

Net sales
Million yen
1,778
1,530

%
16.3
28.1

Net income
per share
Yen
Year ended Mar. 2018Year ended Mar. 2017

5.10
7.21

(% change from the previous corresponding period)
Operating income
Ordinary income
Net income
Million yen% Million yen%
Million yen
%
411
-11.1
604
-18.1
434
-28.4
463
3.9
738
24.6
606
42.6
Diluted net income per
share
Yen
-

(2) Non-consolidated financial position
Total assets
As of Mar. 31, 2018
As of Mar. 31, 2017

Million yen
17,97017,720Net assets
Million yen
4,261
3,825

Shareholders’ equity
ratio

Net assets per
share
%

23.7
21.6

Yen
49.82
45.18

(Reference) Shareholders’ equity:
As of March 31, 2018: 4,261 million yen
As of March 31, 2017: 3,825 million yen* Financial summary is not subject to auditing procedures by certified public accountants or auditing firms.
* Explanation regarding appropriate use of business forecasts and other special instructions
・Forecasts regarding future performance in this material are based on information currently available to the company
and certain assumptions that the company deems to be reasonable at the time this report was prepared. Actual results
may differ significantly from the forecasts due to various factors.
・The Company plans to hold results briefing for institutional investors and analysts on May 10, 2018 (Thursday) andresults briefing for individual investors on May 26, 2018 (Saturday). After the breifing, the company will promptly
post presentation materials distributed at the results briefing on the company website. Please confirm the results
briefing schedule and other information on the company website.

○Table of Contents of the Appendix

1. Summary of Operating Results ................................................................................................................................... 2(1) Summary of operating results for the current fiscal year .......................................................................................... 2(2) Summary of financial condition in the current fiscal year ........................................................................................ 3(3) Summary of cash flow in the current fiscal year ....................................................................................................... 4(4) Future outlook ........................................................................................................................................................... 6
2. Basic Policies regarding the Selection of Accounting Standards ............................................................................... 6
3. Consolidated Financial Statements and Major Notes ................................................................................................. 7(1) Consolidated Balance Sheet ...................................................................................................................................... 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ................................... 9(3) Consolidated Statements of Changes in Shareholders’ Equity ............................................................................... 11(4) Consolidated Statement of Cash Flows .................................................................................................................. 13(5) Notes on the Consolidated Financial Statements .................................................................................................... 15(Notes on going concern assumption) .......................................................................................................................... 15(Additional information) .............................................................................................................................................. 15(Segment Information) ................................................................................................................................................. 15(Per-stock Information) ................................................................................................................................................ 16(Significant events after the reporting period) .............................................................................................................. 16－ 1 －1. Summary of Operating Results(1) Summary of operating results for the current fiscal year
In the current consolidated fiscal year, the Japanese economy saw the recoveries in corporate earnings and capital
investments through the economic and financial policies by the government. Then, the economy is in a gentle recovery
trend, as consumer spending started recovering, reflecting the improvement in the employment and income environments.
As for the environment surrounding the child-raising service, demand for childcare is increasing in response to
women's advancement and active participation in society, and as the issue of the number of children waiting foradmission continues to become more and more serious. In the ‘New Economic Policy Package’ approved by thecabinet on December 8, 2017, the government rapidly accelerated its program of providing free early childhood
education and at the same time fast-tracked its ‘Plan for Raising Children in Peace of Mind’ ahead of schedule byestablishing a policy program to provide daycare for 320,000 children by the end of 2020, and to more effectively
tackle the challenge of delivering improvements both in the recruiting nursery school teachers and in the levels ofcompensation they receive. It is expected that the size of the market will continue to expand in response to thesegovernment policies, and also that social role of our child-raising service is expected to become more important.
Under these circumstances, the Group has continued to strive to boost its recruitment of nursery school teachers and toraise its retention rates by improving the compensation for employees working at nursery schools and other measures,in pursuit of its aim of realizing high-quality childcare. In order to respond to the rising levels of demand for nursery
services, the Group has opened the following new facilities in the fiscal year ended March 2018.
(Nursery school)
Asc Tokiwadai Nursery School(Apr. 1, 2017)

Adachi Municipal Gotanno Nursery School(Apr. 1, 2017)

Asc Nagasaki 1-chome Nursery School(Apr. 1, 2017)

Asc Kamimeguro Nursery School(Apr. 1, 2017)

Asc Iwado Kita Nursery School(Apr. 1, 2017)

Asc Imaiminami Nursery School(Apr. 1, 2017)

Asc Chogo Nursery School(Apr. 1, 2017)

Asc Rifu Nursery School(Apr. 1, 2017)

Asc Takeshita Nursery School(Apr. 1, 2017)

Asc Chatan Nursery School(Apr. 1, 2017)

Asc Maezato Nursery School(Jul. 1, 2017)(School club)
Acty Yanagicho(Apr. 1, 2017)

Shitaya Kids’ Club A(Apr. 1, 2017)

Shitaya Kids’ Club B(Apr. 1, 2017)

Matsuba Kids’ Club A(Apr. 1, 2017)

Matsuba Kids’ Club B(Apr. 1, 2017)

Shibasaki Koen Kita No.1 School Club

(Apr. 1, 2017)

Shibasaki Koen Kita No. 2 School Club

(Apr. 1, 2017)

Hanabatake No.2 School Club

(Apr. 1, 2017)(Private school club)
AEL Yokohama Business Park

(Apr. 1, 2017)(Kindergarten (overseas facility))
COHAS DA NANG

(Sep. 12, 2017)

As a result, the Group came to have 183 nursery schools, 71 school clubs, 12 children's houses, 5 private school clubs,
and 1 kindergarten (overseas facility), making a total of 272 facilities for supporting child-raising at the end of the
fiscal year ended March 2018.

－ 2 －In addition to the above, the Group opened Cohas Kids (a kindergarten) in Vietnam in September 2017, but this is
not included in the number of facilities because it is a franchised facility.
Asc Kagurazaka Nursery School, which had been running since November 2006, and Asc Hibarigaoka Nursery School,
which had been running since August 2002, have been changed from Tokyo Licensed Nursery School to the Licensed
Nursery School, and reopened in April 2017.
The Group closed Kita Municipal Akabanenishi 5-chome Children’s House, which had been running since April 2008,
Nakano-Ehara Kids’ Club, which had been running since April 2009, and Nakano Municipal Saginomiya School Cluband Nakano Municipal Yamato School Club, which had been running since April 2013, on the last day of March 2018,
due to the expiration of a contract period, etc.
For the above reasons, the Group’s consolidated net sales were 26,779 million yen (up 17.5% year on year), operating
income was 1,303 million yen (up 11.5% year on year), ordinary income was 1,582 million yen (up 17.1% year onyear), and net income attributable to owners of parent was 910 million yen (up 37.6% year on year). Sales and profits
increased year on year.
The major factors are as follows:
Net sales increased, due to the establishment of new facilities, the sales growth at existing facilities thanks to theincrease of subsidies for improving treatment of nursery staff and improved utilization rate, and the rise in income
from a subsidy amounting to 81 million yen through the enrichment of subsidies for rents, which was not initially
expected.

Operating income increased, exceeding both the business forecast and the results for the previous fiscal year, althoughpersonnel cost augmented in parallel with the increase in subsidies for improving treatment, undeductible consumption
tax increased 120 million yen after the revision to the items subject to consumption tax, and 148 million yen was posted
as the expenses for two extraordinary shareholders meetings, which were not expected in the initial forecast. This wasdue to sales growth which offset these costs.
In addition, both ordinary income and net income attributable to owners of parent increased, exceeding both thebusiness forecast and the results for the previous fiscal year, as operating income rose as mentioned above, nonoperating revenues grew thanks to the subsidies for responding to the increase of users of the corporate dormitory, andimpairment loss (extraordinary loss) of nursery schools dropped considerably thanks to the profitability improvement
plan of each facility, etc. through the revision to staffing.
(2) Summary of financial condition in the current fiscal year
As for the financial position at the end of the current fiscal year, the total assets amounted to 25,761 million yen (up1,758 million yen from the end of the previous fiscal year).
Current assets totaled 8,307 million yen (up 1,246 million yen from the end of the previous fiscal year), mainly
because accounts receivable increased by 470 million yen, cash and deposits increased by 438 million yen, others
increased by 266 million yen, and inventories increased by 40 million yen.
Fixed assets totaled 17,453 million yen (up 512 million yen from the end of the previous fiscal year), mainly because
buildings and structures increased by 400 million yen, guarantee deposits increased by 122 million yen, and long-termloans receivable increased by 121 million yen, while construction in progress decreased by 80 million yen, and－ 3 －goodwill decreased by 30 million yen.
Total liabilities amounted to 18,004 million yen (up 857 million yen from the end of the previous fiscal year).
Current liabilities totaled 8,208 million yen (up 1,670 million yen from the end of the previous fiscal year), mainly
because short-term loans payable increased by 1,500 million yen, and accounts payable increased by 742 million yen,income taxes payable increased by 186 million yen, and others increased by 98 million yen, while current portion of
long-term loans payable decreased by 765 million yen, and accrued consumption taxes decreased by 86 million yen.
Fixed liabilities totaled 9,795 million yen (down 813 million yen from the end of the previous fiscal year), mainly
because net defined benefit liability increased by 67 million yen, and others increased by 37 million yen, while longterm loans payable decreased by 921 million yen.
Total net assets as of the end of the current fiscal year totaled 7,756 million yen (up 901 million yen from the end of
the previous fiscal year), mainly because retained earnings increased by 690 million yen, while treasury stock
decreased by 233 million yen.

(3) Summary of cash flow in the current fiscal year
Cash and cash equivalents (hereinafter referred to as “the funds”) for the current consolidated fiscal year were 1,865
million yen from the funds obtained through operating activities; 1,292 million yen paid out in investing activities;
and 135 million yen paid out in financing activities, totaling 4,455 million yen, up 438 million yen from the end of
the previous fiscal year.
The cash flow situations and their reasons for the current consolidated fiscal year are as follows:[Cash flows from operating activities]
The funds obtained through operating activities were 1,865 million yen (1,878 million yen during the previous
consolidated fiscal year).
This is due to the following: net income before income taxes and others (1,557 million yen); depreciation costs (668
million yen); increase in note and accounts payable and accrued expenses (447 million yen); increase in advances
received (228 million yen); but there was an increase in accounts receivable (533 million yen); income taxes paid or
refund (397 million yen); and interest and dividend income (110 million yen).
Compared to the previous consolidated fiscal year, the funds obtained decreased by 12 million yen. This is, while thenet income before income taxes and others increased by 530 million yen, note and accounts payable and accrued
expenses increased by 242 million yen, and advances received increased by 180 million yen, there was a decrease in
the following: accounts receivable (741 million yen); income taxes paid or refund (385 million yen); impairment loss
(299 million yen); accrued consumption taxes (184 million yen); other current assets (88 million yen); andprovision for bonuses (46 million yen).
[Cash flows from investing activities]
Total expenditures of the funds towards the investing activities were 1,292 million yen (3,305 million yen during theprevious consolidated fiscal year).
This is due to the following: despite the proceeds from subsidy income (825 million yen) and income through thecollection of long-term loans receivable (218 million yen), there was a decrease in the following: expenditure
towards purchase of property, plant and equipment (1,853 million yen); long-term loan expenditures (333 millionyen); and payments for guarantee deposits (156 million yen).
Compared to the previous consolidated fiscal year, the fund expenditures decreased by 2,012 million yen. This is,while the proceeds from subsidy income increased by 388 million yen, there was a decrease in the following:－ 4 －expenditures towards obtaining investments in subsidiaries resulting in change in scope of consolidation (349 millionyen); purchase of investment securities (346 million yen); payments of long-term loans receivable (181 million yen);expenditure towards purchase of property, plant and equipment (607 million yen); and other payments (144 million
yen).
[Cash flows from financing activities]
Total decrease of the funds from the financing activities was 135 million yen (increase in 1,646 million yen during
the previous consolidated fiscal year).
This is due to the following: increase in short-term loans payable (2,100 million yen); income through long-term debt
(1,850 million yen); and proceeds from disposal of treasury shares (268 million yen), but there was a decrease in thefollowing: repayments of long-term loans (3,536 million yen); short-term loans payable (600 million yen); andpayment of dividends (218 million yen).
Compared to the previous consolidated fiscal year, the funds decreased by 1,781 million yen. This is, while theincrease in short-term loans payable increased by 600 million yen, and repayments of long-term loans payable
increased by 187 million yen, there was a decrease in the following: proceeds from long-term loans payable (3,212
million yen), decrease in short-term loans payable (900 million yen), payment of dividends (218 million yen), andproceeds from disposal of treasury shares (100 million yen).
The related index of our Group’s cash flow is as follows:
FY3/16
FY3/17
FY3/18
Shareholders’ equity ratio (%)
29.7
28.5
30.1
Shareholders’ equity ratio
162.0
98.8
102.6
against current price (%)
Cash flow to interest-bearing
6.3
7.0
6.9
debts ratio (years)
Interest coverage ratio (x)
49.4
36.5
37.3
Notes:
Shareholders’ equity ratio = shareholders’ equity/total assets
Shareholders’ equity ratio against current price = total current stock price/total assets
Cash flow to interest-bearing debts ratio = interest-bearing debts/cash flow
Interest coverage ratio = cash flow/interest payment[Note 1] All calculated based on consolidated fiscal amounts.
[Note 2] Total current stock price calculated based on the total number of stocks issued minus treasury shares.
[Note 3] Cash flow here signifies operating cash flow.
[Note 4] Interest-bearing debts here include all the debts that incur interests and appropriated on the consolidatedbalance sheet.

－ 5 －(4) Future outlook
The details of the child-raising facilities that the Group started operation as of April 1, 2018 are as follows:(Nursery school)
Koto-ku Minamisuna No.4 Nursery School(Apr. 1, 2018)

Asc Toneri Nursery School(Apr. 1, 2018)

Asc Higashikasai Nursery School(Apr. 1, 2018)

Asc Minamikugahara Nursery School(Apr. 1, 2018)

Asc Yakuoji Nursery School(Apr. 1, 2018)

Asc Kanamecho Nursery School(Apr. 1, 2018)

Asc Fuchuhonmachi Nursery School(Apr. 1, 2018)

Asc Minowa Nursery School(Apr. 1, 2018)

Asc Kugenumakita Nursery School(Apr. 1, 2018)

Asc Otakanomori Nursery School(Apr. 1, 2018)

Asc Wani Nursery School(Apr. 1, 2018)

Asc Soneminami Nursery School(Apr. 1, 2018)

Asc Toyotama 1-chome Nursery School A(Apr. 1, 2018)

Asc Toyotama 1-chome Nursery School B(Apr. 1, 2018)

GENKIDS Shinkoyasu Nursery School(Apr. 1, 2018)(Nursery school)
Kojimachi Kids’ Club

(Apr. 1, 2018)

Taisho Primary School After School Club

(Apr. 1, 2018)

Chofu Municipal Chowa Primary School, School Club (Apr. 1, 2018)
Wakuwaku Takinogawa Momiji School Club

(Apr. 1, 2018)

Separate from the above facilities, the Group plans to establish 2in-house nursery facilities after August 2018.
The Company received a proposal regarding the appointment of directors from a shareholder as a bill for the Annual
General Meeting of Shareholders scheduled to be held in June 2018, and there are many uncertainties about the
future management structure up to now. Accordingly, it is difficult to forecast business performance. The Company
will announce its consolidated business forecasts, when it becomes possible to estimate the business performancereasonably.

2. Basic Policies regarding the Selection of Accounting Standards
Our Group produces the financial statements based on the Japanese standard, while taking into consideration thecomparabilities of various financial statement terms as well as those of various companies. Incidentally, theapplication of international accounting standards will be appropriately enforced, in consideration of various
situations inside and outside Japan.

－ 6 －[Consolidated Financial Statements and Major Notes][Consolidated Balance Sheet](Thousand yen)Previous Fiscal Year
(March 31, 2017)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Deferred tax assets
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
LandConstruction in progress
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets－ 7 －Current Fiscal Year
(March 31, 2018)

4,017,591
50,552
108,701
421,877
1,698,958
763,876-766
7,060,792

4,455,750
81,250149,105
421,928
2,169,850
1,030,385-730
8,307,542

10,296,859-3,434,689
6,862,169
5,665-1,3704,294
614,965-381,567
233,398
980,894
1,694,631
9,775,387

11,278,553-4,015,971
7,262,582
5,868-2,3983,470
711,365-470,331
241,033
980,894
1,613,898
10,101,879

288,666
234,792
523,458

258,280
215,489473,769

629,836
3,176,073
1,701,345
328,764
824,994-18,574
6,642,439
16,941,286
24,002,078

629,505
3,297,662
1,823,521
330,499812,703-16,063
6,877,829
17,453,479
25,761,021

(Thousand yen)Previous Fiscal Year
(March 31, 2017)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Reserve for bonuses
Asset retirement obligation
Deferred tax liabilities
Other
Total current liabilities
Fixed liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Long-term accounts payable - other
Asset retirement obligation
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 8 －Current Fiscal Year
(March 31, 2018)

214,960
3,250,349
841,422
157,883
165,273
398,839
10,726577
1,498,695
6,538,727

228,9171,500,000
2,485,320
1,584,376
344,278
78,373390,055
1,597,673
8,208,995

9,855,493
1,668
471,565
3,700
235,619
40,923
10,608,970
17,147,697

8,934,213
2,123
538,8853,700
238,624
78,2809,795,827
18,004,822

1,603,955
1,449,544
4,730,138-869,918
6,913,719

1,603,955
1,449,544
5,421,026-636,635
7,837,890-34,596852-29,580-63,324
3,985
6,854,381
24,002,078-46,654545
3,899-43,350-85,560
3,869
7,756,199
25,761,021

[Consolidated Statement of Income and Consolidated Statement of Comprehensive Income][Consolidated Statement of Income](Thousand yen)Previous Fiscal Year
(April 1, 2016–
March 31, 2017)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Guarantee commission received
Subsidy income
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Commission fee
Handicapped employment levy
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Extraordinary income
Extraordinary loss
Loss on retirement of fixed assets
Loss on impairment long-lived asset of facilities
Loss on valuation of investment securities
Total extraordinary loss
Income before income taxes and others
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Net income
Net loss attributable to non-controlling interests
Net income attributable to owners of parent－ 9 －Current Fiscal Year
(April 1, 2017–
March 31, 2018)

22,799,279
19,123,914
3,675,364
2,506,436
1,168,927

26,779,234
22,685,186
4,094,048
2,790,933
1,303,115

85,29865,60886,51814,421
251,847

110,730
65,608166,397
27,182369,918

49,808
9,339
4,625
6,149
69,9231,350,851

52,2292,000
6,200
25,587
5,013
91,0301,582,003

400
400

3,834
3,834

1,202
323,025
324,227
1,027,024
461,289-95,687
365,601
661,422-51
661,473

3,310
23,137
1,404
27,851
1,557,986
636,856
10,738647,595
910,390-116
910,507

[Consolidated Statement of Comprehensive Income](Thousand yen)Previous Fiscal Year
(April 1, 2016–
March 31, 2017)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－ 10 －

Current Fiscal Year
(April 1, 2017–
March 31, 2018)

661,422910,390

18,195852-4,838
14,210675,632-12,057-307
3,899-13,770-22,236
888,154675,683

888,271-51-116

[Consolidated Statements of Changes in Shareholders’ Equity]
Previous Fiscal Year (April 1, 2016–March 31, 2017)(Thousand yen)
Shareholders' equity
CapitalBalance at the beginning ofcurrent period

Capital surplus

1,603,955

Retained earnings

1,449,544

4,507,903

Treasury stock-1,208,168

Total shareholders'equity6,353,234

Changes of items during theperiodDividends from surplus-439,238-439,238

Net income attributable toowners of parent

661,473

661,473

Disposal of treasury stock
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period338,250

338,250－－

222,235

338,250

560,485

1,603,955

1,449,544

4,730,138-869,918

6,913,719

Total accumulated other comprehensive income

Balance at the beginning ofcurrent period
Changes of items during theperiodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeign currencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income-52,792－－-24,742-77,534

Non-controllinginterests

4,036

Total net assets

6,279,737

Dividends from surplus-439,238

Net income attributable toowners of parent

661,473

Disposal of treasury stock

338,250

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period18,195852－-4,838

14,210-51

14,15918,195852－-4,838

14,210-51

574,644-34,596852－-29,580-63,324

3,985

6,854,381－ 11 －

[Consolidated Statements of Changes in Shareholders’ Equity]
Current Fiscal Year (April 1, 2017–March 31, 2018)(Thousand yen)
Shareholders' equity
CapitalBalance at the beginning ofcurrent period

Capital surplus

1,603,955

Retained earnings

1,449,544

4,730,138

Treasury stock-869,918

Total shareholders'equity6,913,719

Changes of items during theperiodDividends from surplus-219,619-219,619

Net income attributable toowners of parent

910,507910,507

Disposal of treasury stock
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period233,282

233,282－－

690,888

233,282

924,170

1,603,955

1,449,544

5,421,026-636,635

7,837,890

Total accumulated other comprehensive income

Balance at the beginning ofcurrent period
Changes of items during theperiodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeign currencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income-34,596852－-29,580-63,324

Non-controllinginterests

3,985

Total net assets

6,854,381

Dividends from surplus-219,619

Net income attributable toowners of parent

910,507

Disposal of treasury stock

233,282

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period-12,057

-307

3,899

-13,770-22,236-116-22,352-12,057

-307

3,899

-13,770-22,236-116

901,817-46,654

545

3,899

-43,350-85,560

3,869

7,756,199－ 12 －

[Consolidated Statement of Cash Flows](Thousand yen)Previous Fiscal Year
(April 1, 2016–
March 31, 2017)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in liabilities relating to retirement benefits
Loss (gain) on sales of fixed assets
Loss (gain) on sale of investment securities
Loss (gain) on retirement of fixed assets
Impairment loss
Loss (gain) on valuation of investment securities
Interest and dividends income
Interest expenses
Equity in losses (gains) of affiliates
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Decrease (increase) in accrued consumption taxes
Decrease (increase) in notes and accounts payable-trade
Decrease (increase) in accounts payable - other and accrued
expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in other current assets
Decrease (increase) in other fixed assets
Increase (decrease) in other current liabilities
Increase (decrease) in other fixed liabilities
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities－ 13 －

Current Fiscal Year
(April 1, 2017–
March 31, 2018)

1,027,024

1,557,986

638,681
15,192
3,578
38,07058,998-400

668,678
30,385-2,547-8,78346,327
-

3,102
1,202
323,025-87,919
49,808-5,190-10,248
207,645-16,292
23,852-3,834
3,310
23,137
1,404-110,730
52,22925,587-30,697-40,403-533,499-49,771
13,942

204,648447,272

97,78247,8199,293
15,534
31,521
11,6762,688,407-86,900
228,682-79,260
7,647
128,2782,460
2,290,904

24,12022,444-51,410-783,076-49,976-397,549

1,878,041

1,865,822

(Thousand yen)Previous Fiscal Year
(April 1, 2016–
March 31, 2017)

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of property, plant and equipment
Proceeds from subsidy income
Proceeds from sales and redemption of investment securities
Proceeds from cancellation of investment securities
Purchase of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments of long-term loans receivableCollection of long-term loans receivable
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Other payments
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Proceeds from disposal of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－ 14 －

Current Fiscal Year
(April 1, 2017–
March 31, 2018)-2,460,789-132,696
400
437,388
97,692-367,651-115,920
51,957-515,300
201,518-1,853,760-17,006
825,603
27,247-21,395-156,014
26,094-333,869
218,696-349,337--152,732-8,437-3,305,471-1,292,842

1,500,000-1,500,000
5,062,000-3,348,855-436,275
369,189
1,646,058

2,100,000-600,000
1,850,000-3,536,308-218,213
268,892-135,629-

808

218,627

438,159

3,798,964

4,017,591

4,017,591

4,455,750

(5) Notes on the consolidated financial statements(Notes on going concern assumption)
Not applicable(Additional information)[Trading regarding the stock distribution trust (employee stock ownership disposal type)]
Current consolidated fiscal year (April 1, 2017 – March 31, 2018)
At our company, we have a “stock distribution trust (employee stock ownership disposal type)” (hereinafterreferred to as “this system”) to improve the welfare of our employees as well as to provide the incentive for theadded corporate value.
(1) Summary of tradingThis system is an incentive plan to return the stock appreciation merits of our company to all employees who aremembers of the “JP Employees Stock Ownership” (hereinafter referred to as “the stock ownership”).
In this system, our company is bound by the stock distribution trust contract (employee stock ownership disposaltype) (hereinafter referred to as “this trust contract”) with our company as the trustor and Mizuho Trust & Banking
Co., Ltd. as the trustee. The trust set up in accordance with this trust contract is referred to as “this trust.”
Additionally, Mizuho Trust & Banking Co., Ltd. is bound by the re-trust contract with Trust & Custody Services
Bank, Ltd. (hereinafter referred to as “Trust E Bank”) with the said bank as the re-trustee to re-trust the
management of the trust assets such as securities.
In the future, Trust E Bank will obtain in bulk the stocks of our company that are to be acquired by the stock
ownership in advance, and it will sell the stocks according to the stock purchases by the stock ownership. Should
the equivalent amount to the profit from sales of stocks accumulate in this trust’s assets through the sale by Trust E
Bank to the stock ownership before the termination of the trust, this will be distributed to the members of the stock
ownership who fulfill the beneficiary qualifications as the residuary assets. Our company guarantees the trustbanks’ loans to obtain the treasury shares; therefore, should there be a residuary liability equivalent to the loss on
the sales of stocks due to the reasons such as nosedive of our share prices at the completion of the trust, ourcompany will compensate for the said liability according to the guarantee contract.
(2) Own stocks remaining in the trust
Our company appropriates the own shares remaining in the trust as the treasury shares as part of the net assets
through the book value of the trust (except for the incidental expenses). The book value and the number of stocksof the treasury shares are 869,660 thousand yen and 3,162,400 stocks at the end of the previous consolidated fiscal
year, and 636,377 thousand yen and 2,314,100 stocks at the end of the current consolidated fiscal year.
(3) Book value of debts appropriated by the gross price method
End of the previous consolidated fiscal year: 915,102 thousand yen
End of the current consolidated fiscal year: 640,400 thousand yen(Segment Information)
As our group operates within one single segment (nursery service), we have omitted the descriptions as such.

－ 15 －

(Per-stock Information)
Previous Fiscal Year

Current Fiscal Year

(April 1, 2016–(April 1, 2017–

March 31, 2017)

March 31, 2018)

Net assets per share

80.89 yen

90.63 yen

Net income per share

7.87 yen

10.70 yen

Notes:
1. Diluted net income per share is omitted as there are no dilutive shares.
2. The own stocks remaining in the trust as appropriated as the treasury stock in the capital stock are, according
to the calculation of net income per share, included as the treasury shares that are deducted from the mid-term
average number of stocks, and according to the calculation of net assets per share, are included in the numberof treasury shares that are deducted from the total number of stocks issued at the end of term. According to
the calculation of net income per share, mid-term average number of said treasury shares deducted was
3,753,731 stocks during the previous consolidated fiscal year and 2,730,169 stocks during the current
consolidated fiscal year. According to the calculation of net assets per share, the number of deducted end-ofterm treasury shares was 3,162,400 stocks at the end of the previous consolidated fiscal year 2,314,100 stocks
at the end of the previous consolidated fiscal year.
3. The basis for calculating net income per share is as follows:
Previous Fiscal Year
(April 1, 2016–
March 31, 2017)
Net income attributable toowners of parent
661,473(thousand yen)Amount not belonging toordinary stockholders(thousand yen)
Net income attributable toowners of parent regarding
661,473
the ordinary shares(thousand yen)
Mid-term average number of
84,093,963
ordinary shares (stocks)

Current Fiscal Year
(April 1, 2017–
March 31, 2018)
910,507-910,507

85,117,525(Significant events after the reporting period)
A lawsuit was filed against our Company at the Tokyo District Court on April 20, 2018, and we received a complainton May 8, 2018. The outline of the complaint is as follows:(1) Name, address, and representative of the party that has filed a lawsuit(a) Name: Mother Care Japan Co., Ltd.
(b) Address: 3-12-1 Honmachi, Shibuya-ku, Tokyo(c) Representative: Toru Sakai(2) Outline of the lawsuit, and the amount claimed
The plaintiff Mother Care Japan Co., Ltd. filed a lawsuit, claiming that we should pay 264 million yen as thecompensation for damage, because our Company recognized the plaintiff’s exercise of voting rights as unconfirmed
at the extraordinary shareholders meeting held on March 23, 2018, and also pay delinquent charges.
(3) Future outlook
Our Company considers the argument of Mother Care Japan Co., Ltd. as groundless, and will cope with it properly
in court. How much this lawsuit will affect the consolidated business performance of our company is still to be
estimated.

－ 16 －