TSE1 (2749)

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

Financial Results for the Fiscal Year
ended March 2021/
New Medium-Term Management Plan

May 19, 2021
JP-HOLDINGS, INC.

INDEX１

FY3/21 Results

２

New Medium-term Management Plan
(FY3/22-FY3/24)

３

FY3/22 Forecast

４

Initiatives to Attain SDGs

５

APPEDIX© 2021 JP-HOLDINGS, INC.

2

1

FY3/21 Results3FY3/21 Consolidated Results (Summary)
Net sales: increased year-on-year due to the opening of new facilities and an increase in the number of children
accepted in existing facilities
Ordinary income: increased due to cost reductions, despite a slowdown in growth in the number of children accepted
due to the impact of COVID-19.
Net income: decreased due to an extraordinary loss of 2,092 million yen as a result of closures and impairment losses*1
on facilities with deteriorating profitability caused by environmental changes and the off-balancing offacilities that we have operated by acquiring land and buildings in the past, as a foothold for thedevelopment of local childcare support facilities.

FY3/20Net sales
Operating income
Ordinary income
Net income attributable toowners of parent

ROE (%)
Dividend (yen)Dividend payout
ratio (%)
Dividend per share (yen)FY3/21

Rate of Change
Compared to the Previous Term

Rate of Change
Compared to the Forecast

31,7191,538
2,003

32,911
2,268
2,947+1,192
+729
+944

+3.8%
+47.4%+47.1%

1,122

537

-585

-52.1%

12.1
3.90

5.5
3.90

-6.6
±0

-54.5%
100.0%

30.4

63.4

33.0

+108.6%

12.81

6.15

-6.66

-52.0%*1 : Net income represents "Net income attributable to owners of parent."© 2021 JP-HOLDINGS, INC.

4

FY3/21 Factors for Changes in Net Sales
Net sales

31,719Net
sales

FY3/20

Increased by 3.8% due to the opening of new facilities and an increase in thenumber of children accepted, despite the impact of the spread of COVID-19.

691
-260
Impact of
COVID-19
Decrease inschool lunch
fees, etc.
collected
directly fromparents

161
New subsidies(addition ofnutritionist)

Increase due
to opening of
new facilities
and transition
to licensed
facilities

396

204

32,911OthersIncrease in thenumber ofchildren
accepted inexisting facilities

Net
sales

FY3/21(Unit: million yen/ Rounded down to the nearest million yen. )© 2021 JP-HOLDINGS, INC.

5

FY3/21 Factors for Changes in Operating Income
OperatingincomeIncreased due to the opening of new facilities, an increase in the number ofchildren accepted, and efforts to curb cost of sales and SG&A expenses, including
a decrease in foodstuffs expenses in line with the suspension of operations,despite the impact of measures to prevent the spread of COVID-19.

803

Gross profit

1,538

OperatingincomeFY3/20

Increase in gross profit due
to opening of new facilities,
an increase in the numberof children accepted, and adecrease in cost of sales

74
SG&A

2,268

Increase in costs due tothe introduction of thesystem and increase inpersonnel costs due toadministrative support

OperatingincomeFY3/21(Unit: million yen/ Rounded down to the nearest million yen. )© 2021 JP-HOLDINGS, INC.

6

FY3/21 Factors for Changes in Ordinary Income
Ordinary
incomeIncreased due to an increase in operating income, as well as an increasein subsidies reflecting an increase in the number of corporate dormitory
users.
-19

195
729

2,003

Ordinary
incomeFY3/20OperatingincomeIncrease in operating
income due to new
openings, an increasein the number ofchildren accepted,
and curbing expenses

2,947

Decrease in nonoperating expenses
Non-operating income
Increase in subsidies
for corporate dormitory
expenses, etc.

Ordinary
incomeFY3/21(Unit: million yen/ Rounded down to the nearest million yen. )© 2021 JP-HOLDINGS, INC.

7

FY3/21 Factors for Changes in Net Income
Net income
attributable toowners ofparentDecreased due to the recording of an extraordinary loss of 2,092 million yen reflecting theclosure and impairment loss of facilities with deteriorating profitability caused by changes in theexternal environment and the off-balancing of the facilities that we have operated by acquiring
land and buildings in the past, as a foothold for the development of local childcare support
facilities.

944
Ordinary
income34-1,776Extraordinary
incomeSale of assets ofcompany-led
facilities

1,122

Net income
attributableto ownersof parent

FY3/20

Increase due to anincrease in operating
income, as well as anincrease in subsidies
reflecting an increasein the number ofcorporate dormitory
users.

-213
Recorded extraordinary
loss of 2,094 million yen
Land and buildings
Impairment losses on
closing facilities andexisting facilities(315 million yen in theprevious fiscal year)

537

Difference inincome taxes fromthe previous fiscal
year

Net income
attributableto ownersof parent
FY3/21(Unit: million yen/ Rounded down to the nearest million yen. )© 2021 JP-HOLDINGS, INC.

8

FY3/21 Consolidated Forecasts (Changes)
Net sales: Slight decrease from the initial plan reflecting a decrease in the number of children acceptedand decreased sales due to the impact of COVID-19
Ordinary income: Substantial increase from the initial plan due to reduction of purchase cost andreallocation of staff to cope with the closure of facilities and decrease in the number of children
accepted due to COVID-19
Net income: Substantial change from the initial plan due to extraordinary losses incurred from changes
in the environment at newly opened facilities during the period of expansion(Million yen)

FY3/20
Actual

FY3/21
Initial plan

FY3/21
Revised forecast

FY3/21
ActualPct. change
from initial plan

Pct. change
from revised
forecast

31,71933,00532,791

32,911

-0.3%

0.4%

Operating income

1,538

1,577

2,063

2,268

43.8%

9.9%

Operating income
margin

4.8%

4.8%

6.3%

6.9%

2.1%

0.6%

Ordinary income

2,003

2,153

2,736

2,947

36.9%

7.7%

Ordinary income
margin

6.3%

6.5%

8.3%

9.0%

2.4%

0.6%

Net income

1,122

1,163

516

537

-53.8%

4.1%

Net income margin

3.5%

3.5%

1.6%

1.6%

-1.9%

0.1%

Dividend per share
(yen)

3.90

3.90

3.90

3.90

0.00

0.00

Net sales*1 : Net income represents "Net income attributable to owners of parent."(Million yen, rounded down to the nearest million yen)
© 2021 JP-HOLDINGS, INC.

9

FY3/21 Consolidated Results (Financial Position)
Measures for dealing with the demand for funds for coping with the impact of COVID-19(augmentation of borrowings)
Liabilities, Net Assets,
Shareholders Equity Ratio

Financial condition
End of March 2021*( ) = Difference with the end of March 2020

Liabilities

AssetsLiabilities
19,732 million yen

29,740 million yen(+3,246 million yen)(+3,617 million yen)

Net assets
10,007 million yen(+371 million yen)

End of Mar. 2020

End of Mar. 2021

Current assets

9,788

15,139Fixed assets

16,334

14,601

Total assets

26,112

29,740Current
liabilities

5,920

7,829

Fixed liabilities

10,565

11,903

Total liabilities

16,486

19,732

Total net assets

9,636

10,007

Million yen

Net Assets－－Equity Ratio (%)

16,486 million yen
36.9

19,732 million yen
33.7

9,636 million yen

10,007 million yen

End-FY3/20

End-FY3/21

Cash and deposits
4,814 million yen
Inventory assets
56 million yen
Total depreciation and amortization and impairment loss
-2,090 million yen
Land-395 million yen
Current portion of long-term loans-payable
3,307 million yen
Income taxes payable
136 million yen
Long-term loans payable
825 million yen

Retained earnings
196 million yen
Accumulated other comprehensive income 175 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.)© 2021 JP-HOLDINGS, INC.

10

FY3/21 Consolidated Results (Balance Sheet)
End-FY3/20(Million yen)

Total current assets

End-FY3/21(Million yen)

Change(Million yen)

9,788

15,1395,351(Cash and deposits)

6,206

11,0204,814(Inventory assets)

111

167

56

16,334

14,601-1,733(Total tangible fixed assets)

8,620

6,701

-1,919(Total intangible fixed assets)

247

214

-33

7,466

7,685

219

Total assets

26,122

29,7403,617

Total current liabilities

5,920

7,829

1,908

(Current portion of long-term loanspayable)

1,639

3,307

1,667

(Accounts payable-other)

1,535

1,634

99

10,565

11,903

1,337

9,479

10,305825

Total liabilities

16,486

19,732

3,246

Total net assets

9,636

10,007371

Total liabilities and net assets

26,122

29,7403,617

Total fixed assets(Total Investments and other assets)

Total fixed liabilities(Long-term loans payable)(Rounded down to the nearest million yen)
© 2021 JP-HOLDINGS, INC.

11

FY3/21 Consolidated Results (Cash Flows)
Operating CF: Decline in pretax profit and increases in depreciation and amortization andimpairment loss
Investing CF: Sale of securities, and acquisition of tangible fixed assets for opening new facilities
Financing CF: Augmentation of long-term loans payable considering the impact of COVID-19(Million yen)EY 3/20EY 3/21

ChangeCash flows from operating
activities

2,320

2,469

148

Cash flows from investing
activities

418

190

-228

Free cash flow

2,738

2,659

-79

Cash flows from financing
activities-3,349

2,155

5,504

Cash and cash
equivalents at end of
period6,206

11,020

4,814(Rounded down to the nearest million yen)
© 2021 JP-HOLDINGS, INC.

12

Dividend Situation at the End of FY3/21
Under the basic policy of achieving a consolidated payout ratio of around 30%, we aim to keepa stable dividend level as much as possible and plan to pay the estimated dividend announced
previously (year-end dividend: 3.90 yen/share).
*For the dividend forecast for the term ended March 2021, net income attributable to owners of parent fell below theconsolidated forecast due to the posting of extraordinary loss, while operating and ordinary income exceeded theconsolidated forecast in the harsh condition due to the spread of COVID-19.

2.50 yen

3.50 yen

3.70 yen

3.90 yen

3.90 yen

Payout ratio
31.8%

Payout ratio
32.7%

Payout ratio
29.7%

Payout ratio
30.4%

Payout ratio
63.4%

FY3/17

FY3/18

FY3/19FY3/20FY3/21(Planned)*The year-end dividend for FY3/21 will be the dividend per share if approval is obtained at theCompany’s 29th Ordinary General Meeting of Shareholders.
© 2021 JP-HOLDINGS, INC.

13

Status of New Openings as of the End of March 2021
FY3/20 New Openings
Nursery schools: 4
School clubs: 5
Total: 9*Asc Higashiojima Nursery School (Tokyo licensed
nursery school) became a licensed nursery school.
*Obu City 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.
(Elfikids Tsurugamine, Elfikids Futamatagawa andElfikids Ryokuentoshi) closed at the end of March 2020.
*COHAS VIETNAM CO., LTD., which operated thekindergarten in Vietnam, completed the transition to local
licensing on October
29, 2020 and transferred it to C2C Global Education
Group Co., Ltd.
*Ask Akebono Kaiho Nursery School, a company-led
nurcery school, was closed as of December 31, 2020.

No. of Facilities Operated as of
the End of March 2021
Nursery schools: 212
School clubs: 77
Children’s houses: 11
Private school club: 1
Total: 301

Tokyo:
4 licensed nursery schools
Asc Senju Nursery SchoolAsc Toneri Ekimae Nursery SchoolAsc Oizumi Gakuen Nursery SchoolAsc Nerima 3-chome Nursery School

Tokyo:
5 school clubs
Wakuwaku Yanagida Hiroba/Yanagida Midori Club No. 2
Wakuwaku Yon-iwa Hiroba/Yon-iwa Elementary School Icho
Club No. 2
Chofu City Jindaiji Children’s House School ClubMitaka City Minamiura School Club AMitaka City Yon-sho School Club B© 2021 JP-HOLDINGS, INC.

14

No. of Facilities Operated as of the End of March 2021
No. of Facilities Operated by Region

Operate 301 facilities as of the end of March 2021
TohokuHokkaido

Licensed nurseryschools: 11

Kanto

Kinki

Licensed nurseryschools: 9
KyushuOkinawa

Licensed nurseryschools: 5
Company-led
nursery school: 1

Licensed nurseryschools: 3

Chubu

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

Licensed nursery schools: 151
Non-licensed nursery schools: 19
Other non-licensed nursery schools: 4
School clubs: 74
Children’s houses: 5
Private school club: 1

212 nursery schools, 77 school clubs,
11 children’s houses, and 1 private school club
*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. (Elfi Kids Tsurugamine, Elfi Kids Futamatagawa and Elfi Kids Ryokuen-toshi) closed at the end of March 2020.
*OHAS VIETNAM Co., Ltd., which operated kindergartens in Vietnam, was transferred to C2C Global Education Group Co., Ltd., as the local transfer of the license wascompleted on October 29, 2020.
*The company-led nursery school “Asc Akebono Kaiho Nursery School” was closed on the last day of December 2020.

© 2021 JP-HOLDINGS, INC.

15

2

New Medium-Term Management Plan
(FY3/22 to FY3/24)

16

Review of Previous Medium-Term
Management Plan
(FY3/19 to FY3/21)

17

Review of Previous Medium-Term Management Plan (Summary)
Drastic management reform under the “new management structure” from the term ended March 2021
We implemented measures for pursuing “profitability and efficiency,” “soundness,” and “growth potential,” to increase revenues.

Initiatives

Concrete measures(1) To tighten our governance system▶To transform into a company with an Audit & Supervisory Committee, to tighten
our governance system▶To concentrate managerial resources on the measures for sustainable growth, the(2) To reform business administration current issues of profitability improvement, and vitalization of organizations, andthrough “selection and concentration” reform business administration
⦿Efforts to improve the profitability of facilities
and “vitalization of organizations”
⦿To establish a specialized committee for improving the quality of childcare⦿To shift to an agile organizational structure for vitalizing our organization(3) To reform our corporate culture▶To grow our brand (renewal of management philosophy and diffusion insideand outside the company)(4) To improve the managementfoundation▶To fortify the system for promoting systematization▶To develop a new HR system and regulations(5) To implement growth strategies▶To form a business tie-up with GAKKEN HOLDINGS Co.,Ltd. for early childhood
learning and new businesses▶To improve the training business (establishing a specialized section) and offer
online education

Goals in the next mediumterm management plan

(1) To further strengthen the management foundation and implement growth strategies(2) To further improve the quality as “nursery schools and facilities that would be selectedby customers”© 2021 JP-HOLDINGS, INC.

18

Review of Previous Medium-Term Management Plan
(State of Achievement of Management Indices)⦿To reform our business structure under the new management structure, and realize high revenue growthOrdinary income rate in FY3/18: 5.9% ⇒ Ordinary income rate in FY3/21: 9.0%
⦿As we opened new facilities nationwide as the strategy for expanding business scale, a significant amount of
extraordinary loss was posted.
In FY3/21, an extraordinary loss of 2,092 million yen was recorded.
中期経営計画(2016年3月期～2018年3月期)
Medium-Term
Management Plan (FY3/16 to FY3/18)
2016年

2017年

2018年

中期経営計画(2019年3月期～2021年3月期)
Medium-Term
Management Plan (FY3/19 to FY3/21)

中期計画(3-yearaverageof mid-term plan)
3期平均

2019年

2020年

2021年

中期計画
(3-yearaverageof mid-term plan)
3期平均

前3期
Last 3-year
averagechange rate
平均増減比

前3期
Last
3-yearaverage change
平均増減差32,911

31,309

33.9%

4,420

5,224

4,607

21.8%

14.3%

13.9%

15.9%

14.7%

2,380

2,647

2,881

2,956

2,828

10.4%

10.2%

9.0%

9.1%

9.0%

9.0%

1,168

1,303

1,401

1,531

1,538

2,268

1,779

8.4%

5.1%

4.9%

6.0%

5.2%

4.8%

6.9%

5.7%

経常利益
Ordinary income

1,781

1,350

1,582

1,571

1,920

2,003

2,947

2,290

Ordinary income
経常利益率
margin

8.7%

5.9%

5.9%

6.7%

6.6%

6.3%

9.0%

7.3%

Extraordinary gain
特別利益

0

0

3

1

0

0

34

特別損失
Extraordinary loss

169

324

27

173

110

315

2,092

839

384.0%

1,071

661

910

881

1,071

1,122

537

910

3.3%

5.2%

2.9%

3.4%

3.8%

3.7%

3.5%

1.6%

2.9%

New
openings
新規開設数

31

24

21

25

21

12

9

14

Total
facilities
累計施設数

224

251

272

289

297

301

FY3/19FY3/20FY3/21

23,37729,29831,719

4,094

3,782

4,178

16.1%

15.3%

16.2%

1,843

2,506

2,790

SG&A
margin
販管費比率

9.0%

11.0%

Operating income
営業利益

1,732

Operating income
営業利益率
marginFY3/16

FY3/17

FY3/18

売上高
Net sales

20,552

22,79926,779

売上総利益
Gross profit

3,576

3,675

17.4%

(Million yen)
(単位:百万円)

Gross
profit margin
売上総利益率

SG&A expenses
販管費

当期純利益
Net income
当期純利益率
Net
income margin

3月期

3月期

3月期

-

3月期

3月期

3月期

-

2018年・2021年
Change between

between FY3/18
and FY3/21
3月期増減比

FY3/18 andFY3/213月期増減差

4,530

22.9%

6,132

513

27.6%

1,130

-0.6%

18.8%
-

38
-1.4%

27.0%
-

476
0.8%

45.8%
-

708
1.4%

11 1033.3%-

2018年・2021年
Change rate

-

-

0.6%

5.9%
-

166
-1.4%

74.1%
-

965
2.0%

86.3%
-

1,365
3.0%

8 1033.3%

31

812 7648.1%

2,065

0
-0.5%

-41.0%
-

-373
-1.8%

-44.7%-7-57.1%

-12

10.7%

29

29

10.7%

*1: Net income indicates net income attributable to owners of parent.
© 2021 JP-HOLDINGS, INC.

19

Review of Previous Medium-Term Management Plan
(State of Achievement of Performance Indices)⦿Sales have grown over the past 6 years, and the compound average growth rate (CAGR) in these periods is 10.8%.
⦿The growth rate in the period of the previous medium-term management plan is 7.1%, due to the impact of COVID-19
and the restraint of opening new facilities from the revenue viewpoint.

Previous medium-term
management plan

(Net sales: million yen)
Net sales■■ 売上高CAGR(3 years)+7.1%

Schoolclubs/
children’shouses:14

Nurseryschools:
17

FY3/16CAGR(6 years)

Amenity(M&A):
7+10.8%
1

Schoolclubs/
children’shouses:11

Private1schoolSchool club

Schoolclubs/
children’shouses: 4
Nurseryschools:
17

clubs/
children’shouses: 8

Nurseryschools:
13

FY3/17

Overseas

Nurseryschools:10

Nurseryschools:11

FY3/18School clubs/
children’shouses: 2

FY3/19FY3/20Schoolclubs/
children’shousesNurseryschools: 4

FY3/21© 2021 JP-HOLDINGS, INC.

20

Review of Previous Medium-Term Management Plan
(State of Achievement of Performance Indices)⦿Ordinary income has increased over the past 6 years, and the compound average growth rate (CAGR) in these
periods is 13.5%. In the period of the previous medium-term management plan, CAGR was 24.3%, due to thestructural reform under the new management structure.
⦿Net income attributable to owners of parent declined, due to the worsening of revenues from facilities in thepast expansion strategy and the posting of impairment loss caused by the write-down of land and buildings.
(Ordinary income)(Net income)(Million yen)Previous medium-term
management plan

⦿COVID-19
⦿New management structure
⦿Removal of past negative aspects(extraordinary loss)■■ Ordinary income ■■ Net income attributable to owners of parent
Extension of thechildcare leave
Downturn of licensed
nursery schools

⦿育児休暇園長
認証保育低迷Ordinary income(3 years)

Kindergartens andnursery schools
⦿2019年10月より
became charge-freein Oct. 2019.
幼保無償化開始

CAGR+24.3%

Increase due to improvement in
⦿処遇改善増加及び労務費
wages and labor expensesの適正化対応Ordinary income(6 years)

CAGR+13.5%Net income (3 years)

CAGR
-9.9%

Net income (6 years)

CAGR
-2.0%
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21© 2021 JP-HOLDINGS, INC.

21

New Medium-Term Management Plan
(FY3/22 to FY3/24)

22

Business Environment Surrounding our Company<Change in the external environment>

Acceleration of digitization and innovation
Acceleration of decrease of children
Change in lifestyles and reform ofworkstyles

Sustainability
Uncertain economic outlook<Environment surrounding childcare support>Decrease of the number of children on waitinglistsAcceleration of decrease of children
Trend of COVID-19
In 23 wards of Tokyo and ordinance-designatedcities, the competition for entering a licensed
nursery school decreased.
Movement for establishing the “Agency forChildren,” which will implement policies in a
unified manner

Aim to develop “nursery schools and facilities
that would be selected by customers”

In response to the changes in the business environment, we will evolve our existing
businesses and cultivate new domains for further growth.
New medium-term management plan
Behavior changes amid the(2022-2023)
pandemic*1: DX stands for digital transformation.

Response to social change

To improve the quality of childcare support(improve the satisfaction of guardians)

Promotion of next-generation
business
To enrich/digitize early childhood learning contents

Strengthening of the managementfoundation
To streamline and sophisticate business operations

Improvement in revenues from existing
businesses
Increase in profitability and efficiency

Improvement in corporate value
Sustainable growth© 2021 JP-HOLDINGS, INC.

23

Target Indices
To improve profitability at existing facilities and further
improve the quality of childcare support
To create new value while considering the changes in society
and the business environment
Medium-term
management
plan goals(To reform the management structure and implement growth strategies in the 3
years from FY3/22 to FY3/24)

3rd year of the medium-term management plan (final fiscal year)
For FY3/24, we aim to achieve net sales of 34,700 million yen
and an ordinary income of 3,500 million yen.
(*To revise annual goals with the rolling method)

We aim to develop “nursery schools and facilities thatwould be selected by customers”
Long-term
management
vision(To develop nursery schools, facilities, and an enterprise that will be selected continuously byguardians, municipalities, training institutions, and staff members)

Improvement/expansion of existing businesses, newbusinesses, and capital/business alliances
Target consolidated net sales: 100 billion yen© 2021 JP-HOLDINGS, INC.

24

Medium-Term Management Plan (Policy)
⦿To continue the management policy from the previous term and aim to strengthen the management foundation
and achieve sustainable growthTo reform business administration by concentrating managerial resources on the activities for achieving sustainable growth, and current issues ofimproving profitability and revitalizing our organization
To develop unrivaled “nursery schools and facilities that would be selected by customers”
Management
policyIssues to tackle

Selection andconcentration
Improvement in profitability andefficiency

Response to social change

New medium-term management plan

Vitalization oforganizations

Promotion of next-generation
business⦿Enrichment of early childhood learning contents for existing nursery schools andImprovement in soundness

Brand development

Growth potential

We aim to develop “nursery schools and facilities that will be selected byguardians, municipalities, training institutions, and employees.”
EnglishEurhythmics

Exercise

Early childhood
learning

school clubs (cooperation with Gakken)
⦿To solve problems with childcareImprovement in the quality of nursery staff (training business)
Social contribution activities (coexistence with local communities and childcare support)
⦿New business expansion utilizing digital content
Promotion of online education and digital programs
⦿Development of new businesses related to childcare (cooperation with Gakken)

Strengthening of the
management foundation

Improvement in revenues fromexisting businesses

⦿Development of the management foundation (streamlining andsophistication of business operations)Systematization, formulation of regulations and systems, personnel education
⦿To improve profitability and efficiency
Improvement in revenues from existing facilities (discussion on the closing ofloss-making facilities)
Optimization of staffing (facilities and the headquarters)
Tightening of standards for opening new facilities© 2021 JP-HOLDINGS, INC.

25

Medium-Term Management Plan (Goals)
⦿Plans for net sales and ordinary incomeWe aim to grow them steadily for 3 years. The compound average growth rate (CAGR) in that period is 1.8%
for net sales, and 8.3% for ordinary income.
Ordinary income plan

Net sales plan

FY3/21

FY3/22

FY3/23

FY3/24(Million yen)

FY3/21

Ordinary
incomeFY3/22

Ordinary income rate

FY3/23

FY3/24(Million yen)

© 2021 JP-HOLDINGS, INC.

26

New Medium-Term Management Plan (Policy)-3 basic strategies-

Target management indices1. Improve profitability and efficiency

Net sales for FY3/24

To improve revenues from existing facilities drastically＋5.5％

To undertake more projects for schools clubs and children’s houses
To energize and streamline facilities with new measures(Gakken x Early childhood learning program /art and dance)

Tightening of the governance system

Systematization for streamlining and sophisticating business operations(development, sophistication, and streamlining of the managementfoundation)
To retain personnel and improve the educational system

3. Improve growth potential
Development of new businesses for creating new value and achieving
sustainable growthM&A and business alliances with other sectors for growth-Ideal state for FY3/24“Nursery schools and facilities that would beselected by customers”
To renew and develop various systems for the working
environment, systematization, and HR, so that our nurseryschools and facilities would be selected by guardians,
municipalities, training institutions, and employees

FY3/24(from FY3/21)
2. Improve soundness

Ordinary income for FY3/24＋18.8％(from FY3/21)

Ordinary income rate for FY3/24

10.1％
Based on new strategies, we set managerial indices,to realize further growth from 2024.
© 2021 JP-HOLDINGS, INC.

27

Medium-Term Management Plan (Business Performance)⦿Points to note in formulating the planWith regard to the plan for FY3/22, the provision for bonuses has been increased due to a change in the bonus
payment period following the introduction of a new personnel system.
We have formulated a plan based on the assumption that the number of children aged 0 and 1 will decrease due tochanges in lifestyles caused by the expansion of COVID-19, an increase in telecommuting rate, and further accelerationof the declining birth rate due to a recent sharp drop in the birth rate.

Medium-term management plan (FY3/22 to FY3/24)
FY3/22
2022年3月期

Results

2021年3月期
forFY3/21

YoYchangerate

FY3/23
2023年3月期

32,911

33,2000.9%

289

33,7001.5% 34,700

3.0%

5.4%

Ordinary
経常利益
income2,947

2,300 -22.0%

-647

2,970

29.1%

3,500

17.8%

18.8%

9.0%

6.9%

-

8.8%

1.9%

10.1%

1.3%

1.1%

Ordinary
income
経常利益率
rate

-2.0%

計画

Change rate

Net sales
売上高

Plan

前期増減比

YoY
change
rate

Plan
計画

YoY
change計画

YoYchangerate

実績(Million yen)
(単位:百万円)

前期増減比 前期増減

FY3/242024年3月期
Planfrom FY3/21
前期増減比 2021年3月期増減比© 2021 JP-HOLDINGS, INC.

28

Priority Measures for New MediumTerm Management Plan

29

Outline of the Medium-Term Management Plan
To continue and implement measures from the previous term. From FY3/23, we will enrich measures.
Management policy

Priority measures

Improve profitability
and efficiency

⦿To increase revenues from existing facilities, and reform the structures of school clubs and children’s houses
To enhance measures for accepting more children, reform the structures of school clubs and children’s houses, and increase
commissioned projects
⦿To design and execute plans for opening new facilities while clarifying investment standards
To implement plans and dominant strategies in response to the changes in the social environment, including demographics and themarket environment
⦿To discuss the progressive childcare-related business at existing facilities
To utilize spaces and develop new programs in addition to the existing programs for English, exercise, and eurhythmics

Improve soundness

⦿To tighten the governance system
⦿To reconsider the business structure of the entire group for reforming the business structure
⦿To secure personnel, improve the educational system, and take measures for curbing turnover rate
To adopt a new HR system, secure personnel and improve the educational system, and develop a comfortable working environment
⦿To sophisticate business administration and streamline operations through systematization
⦿To enrich educational and training systems maximizing our strengths while linking them with brand development efforts
Marketing of the training business, research into education, including the cooperation between industry and academia, and formulation ofa concept for childcare facilities
To bolster cooperation with local communities for social contribution activities and improvement in the quality of childcare
Social contribution activities, and cementing of regional cooperation for improving the quality of childcare

Improve growthpotential

⦿To introduce early childhood learning programs to existing nursery schools and school clubs
⦿Online education (digital transformation)
To offer online education for households rearing children at home and promote the DX of nursery schools
⦿To upgrade the training business (cooperation with other companies and sales business with Gakken)
To promote in-house training and external training for childcare support while using the Internet
⦿Development and execution of new businesses in cooperation with Gakken, and collaborative activities with other sectors (M&A
and business alliance)© 2021 JP-HOLDINGS, INC.

30

Concrete Measures 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.
Measures to improve profitability and efficiency
Measures for FY 3/22

Measures for the period from FY3/23 to FY3/24(1) Improve revenues from existing
facilities/structural reform (school clubs)(1) Increase the operation rate of childcare andundertake new projects (school clubs)

To improve revenues by designating some facilities as the ones
that require intensive measures▶Adopting new programs and restaffingStructural reform of school clubs and children’s houses▶To undertake more projects (dominant strategy)▶To enrich attractive programs and revise the staffing planTo accept more pupils as nursery schools that will be selected▶Enrichment of learning programs and differentiation from competitors
To advertise our forte by increasing attractive contents▶To undertake more projects in cooperation with nursery schools,
school clubs, and children’s houses*We aim to double the number of facilities in 3 years.

(2) Design of opening plans in accordance withinvestment standards
To open new facilities strategically, based on the analysis of
future environments, including demographics and the market
environments▶To narrow down prioritized areas▶To undertake new projects in cooperation with other sectors(3) Discussion on the progressive childcare-related
business at existing facilities
Discussion on new business models utilizing empty spaces due tothe decrease of pupils (early childhood learning, alliances with othersectors, etc.)(4) Revision of business operations at each section
Systematization and adoption of paperless processes(2) Promote new development plans in accordancewith investment standards
Comprehensive measures for rearing and bringing up children incooperation with nursery schools, school clubs, and children’shouses in relevant areas, including dominant strategies(3) Operate the childcare-related business incooperation with existing facilities
Business operation utilizing empty spaces due to the decreaseof pupils
Early childhood learning, support business by visiting nurseryschools, etc.

(4) Share various operations
To make operations paperless by installing a mission-criticalsystemTo outsource some tasks© 2021 JP-HOLDINGS, INC.

31

Measures for Nursery Schools and Facilities that Would be Selected by Customers
To exert competitive advantages by cooperating with Gakken Group and developing originalcontents for realizing nursery schools and facilities that would be selected by customers

GakkenGroup

Utilization of Gakken
contents

Early childhood learning programs,
such as Mojikazu Land and programming

Creation of new businesses
Expansion of services

Continuous improvement incorporate value

NurseryschoolInitiatives for 0- and1-year-old children

Enhancementof external
PR
Learning program DX

Joint/original
development

Competitive advantage
Differentiation

Development of nurseryschools and facilities thatwould be selected bycustomers

Development of contents for 0- and1-year-old children
Education on food and agriculture(experience-based plan)
Nursery school lunch(rigorously selected dishes and ingredients)
New contents: “dance” and “art”
DX of existing contents(English, exercise, and eurhythmics)

To undertake new
projects

School clubs
Children’shousesDifferentiation fromcompetitors byenriching contents© 2021 JP-HOLDINGS, INC.

32

Concrete Measures to Improve Soundness
We will develop an environment and a structure to respond to changes in the market environment.

Measures to improve soundness
Measures for FY3/22(1) Structural reform and systematization▶To actualize an agile organizational structure by communicatingwith on-site workers more closely▶To actualize a compact head officeTo summarize operations and improve a working environment
To streamline and sophisticate business operations throughsystematization
To adopt ICT at each facility(2) Secure personnel and establish a training system▶In response to changes in the social environment, we recruit
workers online and by referrals while having graduates visit theiralma mater.
▶Staffing according to aptitudes based on talent management▶To develop competent personnel by improving job rotation,
training, and study sessions, sophisticate and equalize operations(3) Reform the HR system (duties x evaluation =worth working)▶To reform the HR system for on-site workers and headquarters’
staff, evaluate personnel management, and set standards forevaluating the abilities for each job category(4) Enhance measures for curbing turnoverrate▶To enrich the system for tutoring new employees▶To communicate with employees carefully through online
interviews▶Aim to achieve a turnover rate of 10% or lower(5) Develop the base for group management▶To improve the efficiency of use of assets and secure financial
soundness-To optimize fixed assets▶To tighten corporate governance-To monitor the management and business of each company
and each section, for reform and improvement▶To promote the utilization of managerial resources of thecorporate group-To reshuffle personnel inside the corporate group▶To enhance corporate communication-To promote strategic PR/IR, and disseminate information on
brand development activities© 2021 JP-HOLDINGS, INC.

33

Investment in Human Resources<Viewpoint of investment in
human resources>(1) To employ and train diverse
personnel as a source of value
creation(2) To produce next-generation
leaders who will support thesustainable growth of business

Adoption of a new HR system

Improvement inorganizational
competitiveness

Development (increase) of
personnel

To secure diverse personnel“Human resources” are the most important assets and serve as a growth driver. By securing avariety of personnel and improving the personnel training system, we aim to accelerate businessgrowth and improve our organizational competitiveness.

A salary system considering the abilities and roles of
employees, an operational system for each job category
Renewal of the personnel evaluation system

Development of an organization where various
personnel co-create things
To increase diversity
An organizational structure for tackling various issues
swiftly

Training of personnel and next-generation leaders(3) Company where personnel who
have the motivation to take onchallenges and grow voluntarily
would get together and growTo improve on-site work performance and cultivate
basic skills through the training for each class, skill
improvement training, etc.
To design career development plans and support
growth (development of next-generation leaders)© 2021 JP-HOLDINGS, INC.

34

Concrete Measures to Enhance Growth Potential
To offer new values by changing our activities for childcare support from measures for reducing children on
waiting lists to measures for coping with the decrease of children

Measures to enhance growth potential
Measures for FY3/22(1) Early childhood learning program for nursery schools
To enrich the early childhood learning program for nurseryschools based on the business alliance with Gakken▶To adopt Gakken’s programTo adopt the early childhood learning program of
Gakken at low cost for differentiation-To implement extracurricular programs-To train lecturers by adopting original programs
Utilization of empty spaces and spare time
-To implement new early childhood learning programs byusing empty spaces for Gakken classrooms▶To adopt new programs
To plan to adopt art programs following early childhood
learning programs(2) Offer nursery staff training services
To distribute contents for nursery staff, which were developed fortraining personnel, online▶To apply them to training schools for nursery staff▶To plan global application, too(3) Intellectual training of Asc × DX
(Early childhood learning, art, exercise, English, eurhythmics)
To fuse the online and offline contents of the intellectual training
programs of Asc, and introduce them to nursery schools andguardians▶Early childhood learning in Asc
Development and marketing of programs unique to Asc▶Enhancement of the sales businessTo develop and market contents, as extracurricular activities,
which have been allowed in kindergartens and childcare centers, willbe allowed also in nursery schools▶Quality improvement based on the industry-academia
cooperation
To enhance the collaboration between industry and academia,
and disclose the results of evaluation of the effects of intellectual
training(4) Actively form business and capital alliancesTo expand existing businesses and promote M&A for alliancesTo expand new business domains, and form business alliances forDX© 2021 JP-HOLDINGS, INC.

35

Business Portfolio
Expansion of new business domains for responding to the changes in the market and forming abusiness alliance with Gakken
High
Brand
development

Utilization of Gakken’s
contents/collaborative
development
Online program*Existing nurseryschools and marketing

Growthpotential

Synergy for further growthCreation of new value

Expansion of business forcreating new value

Increase of contact points withcustomers

Training of lectures
for early childhood
learning

EnglishExercise
Eurhythmics

Development of new programs linked withthe contents of Gakken (English, etc.)*Existing nursery schools and marketing
Cooperation with the facilities for elderly
people(Exercise and eurhythmics for seniors)

New business(improvement)

Membershipplatform(Solution)

Training
business

To make pupils,
guardians, and family
members lifelong
customers
Development Sale of (online) teachingand sale of materials
products *Existing nursery schools andmarketing

Developmentof complex
facilities

Childcare
supportbusiness●To undertake more
projects for school clubs
and children’s houses
Implementation of early childhood
learning programs
Online operation

Existing business

Low

Early
childhoodlearning
programContribution torevenuesHigh© 2021 JP-HOLDINGS, INC.

36

Brand Development Efforts to Increase Corporate Value
Renewal of our management philosophy, childcare philosophy and childcare policy with the aim ofdeveloping “nursery schools and facilities that would be selected by customers”

Disseminationof information

To disseminate the know-how for childcare support andactivities at nursery schools
To distribute more information to stakeholders, including
society, guardians, and municipalities
To renew the image of each facility (appearance andsignboard)To enhance communication through SNS, websites, andICT

Improvement
in quality ofchildcareTo upgrade the system for educating and training personnel
To offer early childhood learning programs, lectures on
English, exercise, and eurhythmics, and new programs, suchas art and danceDX in response to the changes in lifestyles
Research and practice of childcare based on thecollaboration between industry and academia

Coexistencewith local
communities
Socialcontribution

To execute various projects for rearing children andsupporting childcare in cooperation with local communities
To promote social contribution activities in cooperation
with local communities
To promote corporate activities for preventing child abuse
and coping with poverty
To enhance efforts to attain SDGs

Management philosophyof the group
To contribute to thedevelopment of a society
filled with smiles throughchildcare support

Corporate message
Every activity is forchildren’s smiles

Group operational
philosophy
Childcare philosophy

We aim to develop nursery schools
and facilities that would be selectedby customers.

© 2021 JP-HOLDINGS, INC.

37

3

Plans for FY3/22

38

FY3/22 Forecast39

FY3/22 Forecast
FY3/21
Actual

FY3/22
Forecast

Year on Year
Comparison(%)

ChangeNet sales (million yen)

32,911

33,200288

0.9Operating income (million yen)

2,268

1,800

-468

-20.6

Ordinary income (million yen)

2,947

2,300

-647

-22.0

Net income attributable to owners ofparent (million yen)

537

1,450

912

169.7

Net income per share (yen)

6.15

16.58

-

Dividends (yen)

3.90

4.50

-

Dividend payout ratio (%)

63.4

27.1

-

4

3

Switch to licensed

Switch to licensed

nursery school: 1

nursery school: 2

58Expected opening of nursery school(school)

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

-１

-

3

-

© 2021 JP-HOLDINGS, INC.

40

Dividend Forecast For FY3/22
⦿Dividend policy
The Company pays a performance-based dividend with a consolidated payout ratio of around 30%
while securing the internal reserves necessary to develop business in the future and strengthen ourmanagement structure.
In this term, the Company will pay a dividend of 4.50 yen while referring to performance forecast andconsidering the impact of COVID-19.

3.50 yen

3.70 yen

3.90 yen

3.90 yen

4.50 yen

Payout ratio
32.7%

Payout ratio
29.7%

Payout ratio
30.4%

Payout ratio
63.4%

Payout ratio
27.1%

FY3/18

FY3/19FY3/20FY3/21(Planned)

FY3/22(Forecast)*The year-end dividend for FY3/21 will be the dividend per share if approval is obtained at the Company’s 29th Ordinary General Meeting of Shareholders.
© 2021 JP-HOLDINGS, INC.

41

New Openings For FY3/22
FY3/21 New Openings
Nursery Schools: 3
School Clubs: 8
Total: 11
On April 1, 2021, we transformed “Ask Ontake Nursery School,” which
has been in operation since August 1, 2003, and “Asc Shimomaruko
Nursery School,” which has been in operation since April 1, 2010, from
Tokyo licensed nursery school to licensed nursery schools.
As “Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji Genkikko
Club No. 1” was established, “Wakuwaku Takinogawa Momiji Hiroba” wasrenamed “Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji
Genkikko Club No. 1.” on April 1, 2021, and has been in operation sincethen.
At the end of March 2021, we closed “Asc Iidabashi Nursery School,”“Asc Nishishinjuku Nursery School,” “Asc Ikebukuro Nursery School,” and“Asc Yukigaya-Otsuka Nursery School,” which are Tokyo licensed
nursery schools, and “AEL Yokohama Business Park,” which is a private
school club. In addition, we withdrew from the operation of “Nakano-ku
Kids Plaza Yato,” “Kita-ku Sakura Club No. 1” and “Kita-ku Sakura ClubNo. 2,” which are school clubs, and “Sayama City Chuo Children's
House,” which is a children’s house, on March 31, 2021, due to the
expiration of respective contract periods.

No. of Facilities Operated as of
the End of April 2021
Nursery Schools: 211
School Clubs: 81
Children’s houses: 11
Total: 303

Tokyo:
3 licensed nursery schools
Asc Kami-Shakujii Nursery SchoolAsc Kanamachi Nursery SchoolAsc Higashikasai Nursery School No. 2

Tokyo:
8 school clubs and children’s houses
Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji Genkikko Club No. 2
Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji Genkikko Club No. 3
Mitaka City Rokusho School Club A
Niji-iro Kids Club
Bancho Elementary School After School No. 1
Bancho Elementary School After School No. 2
Bancho Elementary School After School Kids’Club (Play school)Jindaiji Children’s House© 2021 JP-HOLDINGS, INC.

42

4

Initiatives to Attain SDGs

43

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

Educational
supportRelated SDGs

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

Offer high-quality
early childhood
learning

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

×
Partnership

Major activities

To help solve social issues based on the partnership withstakeholders© 2021 JP-HOLDINGS, INC.

44

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

Personnel
development

Related SDGs

Improvement in expertise andactualization of independent
career development

Major activities
Promotion of work style reformEnrichment of training structure
Career paths and job rotation

Empowermentof women

Actualization of diversityminded workplaces

Workstyles tailored to lifestyles
Systems for childbirth, childcare, andnursing care
Development of a proper businessenvironment

Human rights
and D&I*1

Actualization of diverse
workstyles

Utilization of diverse human resources andsound 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

Partnership

To help solve social issues based on the partnership withstakeholders

×Creation of environmentally sound facilities
Reduction of CO2 emissions by installing
LED lighting
Reduction of food loss and waste*1: Diversity & inclusion (To create something new by utilizing different experiences and accepting differences)© 2021 JP-HOLDINGS, INC.

45

Initiatives to Solve Social Issues
⦿As a mission of an enterprise that operates childcare support business, wewill approach impoverished households and take measures for preventing
child abuse, which are social problems.
We will discuss various measures for raising and donating funds, and determine and actively
promote “activities” and “initiatives” for the future of children.
(In December 2020 and May 2021, we conducted the “support for single-parent households.”)
No poverty

Prevention of child abuse© 2021 JP-HOLDINGS, INC.

46

5

Appendix47

[Supplementary Material] Environment Surrounding Childcare Support
Environment surrounding childcare support
The number of children on waiting lists decreased steadily, and it has dropped over 50% in the past 3 years. As the situation varies among regions, the importance of
support according to regional characteristics will increase.
(No. of children on waiting lists as of April 2020: 12,439, down 4,333 year on year). Prefectures with many children on waiting lists: Saitama, Chiba, Tokyo, Kanagawa, Osaka, and Hyogo
Establishment of a system for social welfare coordination promotion organization
It will become possible to form “a social welfare coordination promotion organization,” a non-profit organization comprising mainly of social welfare corporations (which can lend funds,
recruit staff, and jointly purchase equipment and goods).
The ratio of employed women is rising. As it is estimated to reach 82% in 2025, it will be necessary to increase childcare centers.
(Ratio of employed women in April 2020 was 77.7%.)
The decrease of children accelerated by COVID-19 (The number of births will drop significantly in 2021.)
The number of births was 848,000 in 2020, and is estimated to decrease 7.5% to 784,000 in 2021. The decrease of children is projected to progress 10 years earlier than initially estimateddue to the spread of COVID-19.
In 60% of 23 wards of Tokyo and ordinance-designated cities, the number of applications for entry to licensed nursery schools fell below the capacity. To prevent the spreadof COVID-19, people tend to refrain from entrusting a nursery school with childcare.
In 17 cities accounting for 60%, the rate of enrollment is below 100%. The number of such wards/cities almost doubled from last year (8 cities). There is the trend of extension of achildcare leave for decreasing the risk of infection.
The government plans to establish the Agency for Children, which will take measures in an unified manner, for the ideal administration for children.
Considering the situation in which nursery schools are supervised by the Ministry of Health, Labour and Welfare, kindergartens by the Ministry of Education, Culture, Sports, Science andTechnology, and licensed children’s school by the Cabinet Office, the government plans to unify the management of them.

(1) Estimated number of births (Source: Japan Research Institute)
Estimated number of births[Prediction of the number ofbirths]850,000 in 2020
780,000 in 2021

(2) Application ratio of licensed nursery schools as of April 2021
April 2021
April 2020 2021年4月
2020年4月
Area
YoY
前年差
地区
(ward)
change(times)(倍)(倍)(times)Setagaya
世田谷区
1.64
1.55
-0.09 Arakawa
荒川区
品川区
1.41
1.32
-0.09 Nakano
中野区
ShinagawaBunkyoEdogawa
江戸川区
1.31
1.29
-0.02 文京区
Taito
台東区
1.41
1.26
-0.15 Chiyoda
千代田区
Nerima
練馬区
1.31
1.16
-0.15 Minato
港区
Sumida
墨田区
1.06
1.08
0.02 Katsushika
葛飾区
Adachi
Ota
大田区
1.21
1.06
-0.15 足立区
中央区
1.33
1.05
-0.28 Toshima
豊島区
Chuo
Itabashi
板橋区
1.11
0.98
-0.13 Meguro
目黒区
Kawasaki
Suginami
杉並区
1.06
0.98
-0.08 川崎市
Shibuya
渋谷区
1.13
0.95
-0.18 Saitama
さいたま市
Koto
江東区
0.97
0.93
-0.04 Yokohama
横浜市
Shinjuku
新宿区
1.01
0.91
-0.1 Sagamihara
相模原市
Area
地区
(ward)

Kita
北区

1.02

0.90

-0.12 Average
平均

April 2020 2021年4月
YoY
April 2021
2020年4月
前年差change(times)(倍)(倍)(times)
1.00
0.90
-0.1
1.10
0.85
-0.25
1.00
0.83
-0.17
0.82
0.81
-0.01
0.91
0.77
-0.14
0.84
0.74
-0.1
0.74
0.73
-0.01
0.79
0.71
-0.08
0.85
0.66
-0.19
1.23
1.10
-0.13
1.33
1.03
-0.3
1.06
0.96
-0.1
0.91
0.82
-0.09

1.09

0.98

© 2021 JP-HOLDINGS, INC.

-0.11

48

[Supplementary Material] Current Waiting List Situation
⦿The number of children on waiting lists as ofApr. 1, 2020 is 12,439 (4,333 decrease YoY).
The problem of children on waiting lists
remains serious. This is especially so in theTokyo metropolitan area and prefectures
where major cities (e.g. ordinancedesignated cities) are located.

National Waiting List Map (April 1, 2020)

都道府県
Prefecture

No. of

待機児童数
Children on

待機児童率ChangeWaiting List
Person人

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)

Note: Prefectures include ordinance-designated cities and central cities.

Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2020)

北海道
青森県
岩手県
宮城県
秋田県
山形県
福島県
茨城県
栃木県
群馬県
埼玉県
千葉県
東京都
神奈川県
新潟県
富山県
石川県
福井県
山梨県
長野県
岐阜県
静岡県
愛知県
三重県
滋賀県
京都府
大阪府
兵庫県
奈良県
和歌山県
鳥取県
島根県
岡山県
広島県
山口県
徳島県
香川県
愛媛県
高知県
福岡県
佐賀県
長崎県
熊本県
大分県
宮崎県
鹿児島県
沖縄県
計

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
12,439© 2021 JP-HOLDINGS, INC.

％

0.15
0.00
0.19
0.76
0.10
0.00
0.40
0.32
0.08
0.03
0.80
0.70
0.73
0.29
0.00
0.00
0.00
0.00
0.00
0.09
0.00
0.18
0.09
0.20
1.34
0.08
0.18
1.31
0.76
0.17
0.00
0.00
0.82
0.06
0.06
0.36
0.28
0.21
0.13
0.94
0.20
0.00
0.12
0.04
0.04
0.75
2.19
0.44

49

[Supplementary Material] Current Nursery School Teacher Shortage Situation
 The ratio of job openings to job applicants for nursery school teachers is decreasing.
However, there is a continuing shortage of nursery school teachers across Japan.
(National average as of March 2021: 2. 67 times)
 Jobs to applicants ratio of Tokyo had the trend of increase at 3.94 as of Dec. 2020, butturned to decrease in Jan. 2021 and stood at 3.20 as of Mar. 2021.
Effective Opening to Application Ratio for Nursery School teachers (X)

Mar.
3.20
●
●

Mar.
2.67

Source: Ministry of Health, Labour and Welfare Employment Security
Bureau’s General job placements (Report on Employment Service)© 2021 JP-HOLDINGS, INC.

50

[Supplementary Material] Recruitment of Nursery School Teachers
FY3/15

Nursery School
Teacher

Non qualified

FY3/16

FY3/17

FY3/18

FY3/19Joined on
Apr. 1, 2021

FY3/20New
Graduates

178

197

247

276

248

182

Mid-career
employment

219

241

327

325

269

292

New
Graduates

-

23

32

46

26

9

166
Joined on Apr. 1, 2021

137
Joined on Apr. 1, 2021

7

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

Trend of Employee Numbers in Childcare Support Business(Persons)(*Includes employees of school clubs staffs, nutritionists, etc. other than nursery school teachers)
Employees
Part-time workers

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20© 2021 JP-HOLDINGS, INC.

FY3/2151

[Supplementary Material] Changes in the Number of Facilities Operated and the
Number of Children Accepted to Nursery Schools
FY3/11
Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)
Small-scale Nursery Schools

Nonlicensed
Nursery
Schools

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

10

11

14

16

14

10

10

11

12

12

11

43

61

71

85

102

118

136

148

160

171

177

0

0

0

0

0

0

0

0

2

0

0

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

Non-licensed
Municipality Authorized

4

4

4

4

4

1

0

0

0

0

0

0

0

0

0

0

4

3

3

3

4

4

37
9
0
0
129

39
7
0
0
148

40
8
0
0
163

43
8
0
0
182

46
8
0
0
200

55
10
0
0
224

63
12
4
0
251

71
12
5
1
272

72
11
5
1
289

72
11
4
1
297

77
11
0
0
301

Non-licensed
Other non-licensed
School Clubs
Children's Houses
Private School Clubs
Kindergartens (Overseas Facility)

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

Trend of Nurseries and Children

Number of facilities

Licensed Nursery Schools (Public-private
management)
Licensed Nursery Schools (Private
management)
Small-scale Nursery Schools
Tokyo Licensed Schools

Company-led Nurseries
Non-licensed Municipality Authorized
Other non-licensed
Nursery Schools Attached to Amusement
Facilities
Overseas Facility
Number of Children Accepted (Nursery School)

FY3/01

FY3/02

FY3/03

FY3/04

FY3/05

FY3/06

FY3/07

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20© 2021 JP-HOLDINGS, INC.

FY3/2152

[Supplementary Material] Consolidated Results (Highlights)
FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

9,166

11,867

13,78915,747

17,86820,552

22,79926,77929,29831,71932,911

839

1,114

1,285

1,234

1,345

1,732

1,168

1,303

1,531

1,538

2,268

866

1,150

1,325

1,460

1,550

1,781

1,350

1,582

1,920

2,003

2,947

Net income attributableto owners of parent(million yen)

500

653

717

837

904

1,071

661

910

1,071

1,122

537

Net income per share
(Yen)

6.67

7.83

8.60

10.03

10.84

12.84

7.87

10.70

12.44

12.81

6.15

Net sales (million yen)
Operating income(million yen)
Ordinary income(million yen)

FY3/18

FY3/19FY3/20FY3/21*Net income per share is the amount that reflects the stock split.

Net sales(million yen)

Operating income/Ordinary income(million yen)

Net sales

FY3/11
FY3/11

FY3/12
FY3/12

OperatingincomeFY3/13
FY3/13

Ordinary
incomeFY3/14
FY3/14

FY3/15
FY3/15

FY3/16
FY3/16

FY3/17
FY3/17

FY3/18
FY3/18

FY3/19FY3/19FY3/20FY3/20FY3/21
FY3/21© 2021 JP-HOLDINGS, INC.

53

[Supplementary Material] Consolidated Results (Balance Sheet/Statement of Cash Flows)

FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

Total assets(million yen)

9,432

9,808

10,876

13,521

18,882

21,12624,00225,75828,255

26,122

29,740Net assets(million yen)

3,559

3,977

4,452

5,034

5,606

6,279

6,854

7,756

8,950

9,636

10,007

Shareholders’ equity
ratio
(%)

37.7

40.5

40.9

37.2

29.7

29.7

28.5

30.1

31.7

36.9

33.7

FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

Cash flows fromoperating activities(million yen)

915

1,205

1,173

1,038

1,294

1,804

1,878

1,865

1,829

2,320

2,469

Cash flows frominvesting activities(million yen)

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

-940

418

190

Cash flows fromfinancing activities(million yen)

2,473

219

514

1,220

3,748

1,553

1,646

-135

1,475

-3,3492,155

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

2,602

2,768

3,188

1,808

2,891

3,798

4,017

4,455

6,816

6,206

11,020FY3/18

FY3/19FY3/19FY3/20FY3/20FY3/21

FY3/21© 2021 JP-HOLDINGS, INC.

54

[Supplementary Material] Dividends
The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio ofaround 30% while maintaining the necessary internal reserves for future business development and tostrengthen our management structure.
FY3/11

Amount ofdividend per
share
(yen)

Payout ratio(%)

FY3/122.90

3.00

Commemorative
dividend: 0.50
yenCommemorative
dividend: 0.50
yen

43.4

38.3

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21(planned)

3.20

3.60

4.00

5.00

2.50

3.50

3.70

3.90

3.90

37.2

35.9

36.9

38.9

31.8

32.7

29.7

30.4

63.4

*The amount of dividend per share reflects the stock split.

© 2021 JP-HOLDINGS, INC.

55

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.