Summary of Business Results for the Second Quarter Ended September 30, 2017
[Japan GAAP] (Consolidated)
November 1, 2017
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
Contact
Mika Matsumiya, General Manager of Administration Div.
T E L: +81-52-933-5419
Expected date of filing of quarterly securities report: November 14, 2017
Expected starting date of dividend payment: ―Preparation of quarterly supplementary financial document: Yes
Quarterly results briefing: Yes (for institutional investors and analysts and for individual investors)（Rounded down to million yen）

１. Consolidated business results for the six months ended September 2017
(April 1, 2017 through September 30, 2017)(1) Consolidated results of operations(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen
Six months ended Sept. 201712,74816.2
449
Six months ended Sept. 2016
10,97310.4
299(Note) Comprehensive income
Six months ended September 2017: 322 million yen (32.2%)
Six months ended September 2016: 243 million yen (-33.8%)
Net incomeper share
Yen
Six months ended Sept. 2017
Six months ended Sept. 2016

4.09
2.93%
50.3
-43.5

Net income attributable toowners of parent

Ordinary income
Million yen
593
384%
54.1
-33.4

Million yen
347
245%
41.5
-38.3

Diluted net income pershareYen-(2) Consolidated financial position
Total assets

Net assets

Million yen
As of Sept. 30, 2017
23,569As of Mar. 31, 2017
24,002(Reference) Shareholders’ equity:
As of September 30, 2017: 7,071 million yen
As of March 31, 2017: 6,850 million yen

Million yen
7,075
6,854

Shareholders’ equity
ratio%
30.0
28.5

2. Dividends
End of 1Q

End of 2Q
Yen

Year ended Mar. 31, 2017
Year ending Mar. 31, 2018Year ending Mar. 31, 2018 (forecast)

―
―

0.00
0.00

Annual dividend
End of 3Q
Yen
Yen
―

Year-end

Total
Yen

―

Yen

2.50

2.50

3.00

3.00

(Notes) Revisions to dividend forecast for the current quarter: None

3. Forecast of consolidated business results for the fiscal year ending March 2018
(April 1, 2017 through March 31, 2018)
Net sales(% change from the previous corresponding period)
Operating income

Million yen% Million yen%
Year ending Mar. 31,26,125
14.6
1,157
-1.0
2018
(Notes) Revisions to business forecast for the current quarter: NoneOrdinary income
Million yen%

1,400

3.7

Net income attributable toowners of parent

Million yen
777

Net income pershareYen%
17.6

9.25

※Notes(1) Changes in significant subsidiaries during the period: None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: None: None: None

(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of September 30, 201787,849,400 shares
As of March 31, 201787,849,400 shares②Treasury stock at the end of period
As of September 30, 2017
2,733,106 shares
As of March 31, 2017
3,164,106 shares③Average number of stock during period (quarterly cumulative period)
Six months ended September 201784,915,637 shares
Six months ended September 2016
83,785,665 shares(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and the average
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)".

*Quarterly financial summary is not subject to the quarterly review procedures*Appropriate use of financial forecasts and other important matters∙ 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. The company does not make promises
about the achievements. 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 November 1, 2017 (Wednesday), and to
hold the results briefing for individual investors on December 6, 2017 (Wednesday). After the breifing, the Company willpromptly post presentation materials distributed at the 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. Qualitative Information on Quarterly Financial Results ................................................................................................... 2(1) Results of Operations .................................................................................................................................................... 2(2) Financial Position ......................................................................................................................................................... 3(3) Consolidated Earnings Forecasts .................................................................................................................................. 3
3. Quarterly Consolidated Financial Statements ................................................................................................................... 4(1) Quarterly Consolidated Balance Sheets ........................................................................................................................ 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income .... 6(3) Notes on Quarterly Consolidated Financial Statements ................................................................................................ 8(Notes on going concern assumption)........................................................................................................................... 8(Notes if there is a significant change in the amount of shareholders' equity) .............................................................. 8(Additional information) ............................................................................................................................................... 8－ 1 －1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the second quarter of the current consolidated fiscal year, the Japanese economy continued to mark out a moderate recovery trenddue to improvements in corporate earnings, employment and personal income environment. However, the outlook for Japan remains
unclear because of overseas political events, economic uncertainty and other reasons.
In Japan’s nursery service business, there are still many problems, particularly the difficulty of recruiting nursery school teachers.
The Japanese government is taking actions to deal with the growing number of children on waiting lists for day care facilities. For
example, there are new or upgraded measures to raise salaries for nursery school teachers and increase the number of nurseryfacilities.
Under these circumstances, the need for nursery schools in the nursery service business is still at a high level, and the Groupestablished the following new facilities.
(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,B(Apr. 1, 2017)

Matsuba Kids’ Club A,B(Apr. 1, 2017)

Shibasaki Koen Kita No.1, 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)

As a result, the Group came to have 183 nursery schools, 71 school clubs, 12 children's houses, and 5 private school clubs, making
a total of 271 facilities for supporting child-raising at the end of the second quarter of the current fiscal year.
In addition, 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.
For the above reasons, for the second quarter of the current fiscal year, net sales were 12,748 million yen (up 16.2% year on year),
operating income was 449 million yen (up 50.3% year on year), ordinary income was 593 million yen (up 54.1% year on year), andnet income attributable to owners of parent was 347 million yen (up 41.5% year on year).

－ 2 －(2) Financial Position
As for the financial position at the end of the second quarter of the current fiscal year, the total assets amounted to 23,569 million
yen (down 432 million yen from the end of the previous fiscal year).
Current assets totaled 7,624 million yen (up 563 million yen from the end of the previous fiscal year), mainly because cash anddeposits increased by 495 million yen, others increased by 78 million yen, deferred tax assets increased by 31 million yen, andaccounts receivable - other increased by 27 million yen, while inventories decreased by 75 million yen.
Fixed assets totaled 15,945 million yen (down 995 million yen from the end of the previous fiscal year), mainly because buildings
and structures increased by 692 million yen, while construction in progress decreased by 1,597 million yen, investments and otherassets decreased by 56 million yen, and long-term loans receivable decreased by 33 million yen.
Total liabilities amounted to 16,494 million yen (down 653 million yen from the end of the previous fiscal year).
Current liabilities totaled 7,299 million yen (up 761 million yen from the end of the previous fiscal year), mainly because shortterm loans payable increased by 600 million yen, and accounts payable – other increased by 389 million yen, while current portionof long-term loans payable decreased by 226 million yen.
Fixed liabilities totaled 9,194 million yen (down 1,414 million yen from the end of the previous fiscal year), mainly because net
defined benefit liability increased by 16 million yen, and others increased by 16 million yen, while long-term loans payable
decreased by 1,449 million yen.
Total net assets as of the end of the second quarter of the current fiscal year totaled 7,075 million yen (up 221 million yen from theend of the previous fiscal year), mainly because retained earnings increased by 127 million yen, while treasury stock decreased by118 million yen.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 9, 2017, but actual results
may be different from the forecast according to the changes in business situations, etc.
If there are any changes, the company will disclose them properly.

－ 3 －[Quarterly Consolidated Financial Statements][Quarterly 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－ 4 －Current Second Quarter(September 30, 2017)

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

4,513,390
55,86433,449453,619
1,726,510
841,967-784
7,624,018

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

11,267,112-3,712,454
7,554,657
5,665-1,882
3,782
692,505-426,010
266,495
980,894
96,9138,902,744

288,666
234,792
523,458

273,473
219,936
493,410

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

616,719
3,142,798
1,703,631
335,894
768,770-18,274
6,549,541
15,945,695
23,569,713

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

Liabilities
Current liabilities
Notes and accounts payable-tradeShort-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’ equityAccumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 5 －Current Second Quarter(September 30, 2017)

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

151,822600,000
3,024,066
1,231,002
233,627
58,051
473,3140
1,527,985
7,299,870

9,855,493
1,668
471,5653,700
235,619
40,923
10,608,970
17,147,697

8,405,786
1,877
488,370
3,700
237,12257,587
9,194,443
16,494,314

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

1,603,955
1,449,544
4,857,565-751,393
7,159,672-34,596852-29,580-63,324
3,985
6,854,381
24,002,078-66,361349-22,219-88,231
3,959
7,075,399
23,569,713

[Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income][Quarterly Consolidated Statement of Income][Second Quarter of FY3/18](Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Subsidy income
Guarantee commission received
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of non-current assets
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－ 6 －Previous Second Quarter(April 1, 2016–
September 30, 2016)

Current Second Quarter(April 1, 2017–
September 30, 2017)

10,973,025
9,445,589
1,527,435
1,228,384
299,051

12,748,825
10,979,215
1,769,609
1,320,144
449,465

32,01243,49032,804
6,508
114,816

55,07986,00732,804
7,789
181,681

23,2805,618
28,898384,969

25,5597,426
5,095
38,082593,064

310
310
384,658
157,895-18,510
139,384
245,273-26
245,300

741
1,404
2,146
590,917272,837-28,939
243,898
347,019-26
347,046

[Quarterly Consolidated Statement of Comprehensive Income][Second Quarter of FY3/18](Thousand yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to shareholdersof the parent company
Comprehensive income attributable to non-controllinginterests－ 7 －Previous Second Quarter(April 1, 2016–
September 30, 2016)

Current Second Quarter(April 1, 2017–
September 30, 2017)245,273

347,019-6,481
4,772-1,709243,564-31,764-502
7,360-24,907322,112

243,591

322,139-26-26

(3) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Second quarter of FY3/18 (April 1, 2017 – September 30, 2017)
None(Notes if there is a significant change in the amount of shareholders' equity)
Second quarter of FY3/18 (April 1, 2017 – September 30, 2017)
None(Additional information)[Trading regarding the stock distribution trust (employee stock ownership disposal type)]
Second quarter of the current fiscal year (April 1, 2017 – September 30, 2017)
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 whoare members 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 ownershipdisposal type) (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 themanagement 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 stockownership 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 fiscal year, and751,135 thousand yen and 2,731,400 stocks at the end of the second quarter of the current fiscal year.
(3) Book value of debts appropriated by the gross price method
End of the previous fiscal year: 915,102 thousand yen
End of the second quarter of the current fiscal year: 781,751 thousand yen－ 8 －