Summary of Business Results for the First Quarter Ended June 30, 2022
[Japan GAAP] (Consolidated)
August 10, 2022
Company
JP-HOLDINGS, INC.
Stock Code2749
URL: https://www.jp-holdings. co.jp
Representative
Tohru Sakai, President and Representative Director
Contact
Ryoji Tsutsumi, Director
Expected date of filing of annual securities report: August 10, 2022
Preparation of supplementary financial document: None
Results briefing: None

Listed on the TSE Prime
T E L: +81-52-933-5419
Expected starting date of dividend payment: -（Rounded down to million yen）

1. Consolidated business results for the three months ended June 2022
(April 1, 2022 through June 30, 2022)(1) Consolidated results of operations
Net sales

Operating income

Million yen% Million yen%
Three months ended Jun. 2022
8,596
2.7
726
307.6
Three months ended Jun. 2021
8,371
4.6
178
-32.2
(Note) Comprehensive income
Three months ended June 2022: 468 million yen (286.7%)
Three months ended June 2021: 121 million yen (-51.8%)
Net income
Diluted net income perper share
share
Yen
Yen
5.55
Three months ended Jun. 2022
1.21
Three months ended Jun. 2021(% change from the previous corresponding period)
Net income attributable toOrdinary income
owners of parent

Million yen
739
186

%
296.1
-30.1

Million yen
485
105

%
359.1
-40.4

(2) Consolidated financial position
Total assets

Net assets

Million yen
33,656
As of Jun. 30, 2022
34,274As of Mar. 31, 2022
(Reference) Shareholders’ equity
As of June 30, 2022: 12,049 million yen
As of March 31, 2022: 11,975 million yen

Million yen
12,04911,975

Shareholders’ equity
ratio
%
35.8
34.9

2. Dividends
End of 1Q

End of 2Q
Yen
-

Yen
0.00

Year ended Mar. 2022
Year ending Mar. 2023
Year ending Mar. 2023 (forecast)
0.00(Note) Revisions to dividend forecast for the current quarter: None
Breakdown of year-end dividend for the fiscal year ending March 2023
Ordinary dividend: 5.00 yen, Commemorative dividend: 1.00 yen

Annual dividend
End of 3Q
Yen-

Year-end

-

Total
Yen
4.50

Yen
4.50

6.00

6.00

3．Forecast of consolidated business results for the fiscal year ending March 2023
(April 1, 2022 through March 31, 2023)(% change from the previous corresponding period)
Net sales
Million yen

Operating income%

Million yen

Year ending Mar. 2023
35,6403.7
3,560(Note) Revisions to business forecast for the current quarter: None

Net income attributable toowners of parent

Ordinary income

Net income
per share%

Million yen%

Million yen

%

Yen

6.4

3,580

6.6

2,325

2.0

26.58

*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 standards②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: Yes: None: None: None(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of June 30, 2022
87,849,400 shares
As of March 31, 2022
87,849,400 shares②Treasury stock at the end of period
As of June 30, 2022
380,707 shares
As of March 31, 2022
380,707 shares③Average number of stock during period (quarterly cumulative period)
Three months ended June 2022
87,468,693 shares
Three months ended June 2021
87,468,693 shares*Quarterly financial summary is not subject to the quarterly review 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. For information regarding the business forecasts,
etc., please refer to “1. Qualitative Information on Quarterly Financial Results (3) Consolidated Earnings Forecasts”(Page 4).

〇 Table of Contents of the Appendix

1. Qualitative Information on Quarterly Financial Results………………………………….…..… 2(1) Results of Operations……………………………………………………………….…….…. 2(2) Financial Position……………………………………………………………………….. 4(3) Consolidated Earnings Forecasts……………………………………………………………. 4
2. Quarterly Consolidated Financial Statements………………………………………………….. 5(1) Quarterly Consolidated Balance Sheets……………………………………………..……… 5(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income... 7(3) Notes on Quarterly Consolidated Financial Statements…………………………………….. 9(Notes on going concern assumption)………………………………………………………… 9(Notes if there is a significant change in the amount of shareholders' equity)………………... 9(Changes in accounting policies)……………………………………………………………… 9

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1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the first quarter under review, the Japanese economy showed signs of normalization, including a recovery in consumer
spending, as restrictions on economic activities were gradually relaxed, although the effects of COVID-19 remained. However,
the outlook remains uncertain for the impact on the domestic economy and corporate earnings due to soaring prices of crude oiland other raw materials and the growing tension for the situation in Ukraine.
Meanwhile, in the child-raising support business, the environment surrounding childcare is rapidly changing. These factors
include the acceleration of the declining birth rate society due to the sharp decrease in birth rate, the decrease in the number ofchildren on waiting lists because of people refraining from using the facilities due to COVID-19, a continuing shortage ofchildcare workers, rising demand for childcare reflecting an increase in the female employment rate, and the need to respond tochanges in working styles and lifestyles due to the expansion of COVID-19.
The government has been promoting various measures to improve the childcare environment, such as the development ofchildcare services based on the "New Childcare Security Plan" and the further acceleration of the development of after-school
children's clubs under the "New Comprehensive Plan for After-school Children" in order to eliminate the waiting list forchildren. In addition, the bill for establishment of the Children's Agency was approved by the Cabinet. The government plans toestablish the Agency in April next year and is promoting to create a better environment for childcare. In such circumstances, thesocial role of the child-raising support business will become increasingly important.
Under these situations, as measures against COVID-19, our group, in collaboration with local governments, has established ourown response standards and implemented thorough safety measures with giving top priority to ensuring the safety of children,
parents, business partners, and employees. At the same time, we also have been taking prompt measures.
Rather than prioritizing quantitative expansion through the opening of new facilities, we are required to transform ourselves into
"facilities that would be selected by customers" by further improving the quality of our childcare support in response to changes
in the social environment and the needs of parents. In order to respond promptly to these changes in the environment, our Group
has set more reliable management targets for the Medium-Term Management Plan.
Our Group's medium-term management plan will be revised on a rolling basis based on the conditions in the previous fiscal year.
At the same time, we will continue to take advantage of changes in the social environment and maintain the management
policies formulated in the previous fiscal year with the key objectives of "improve profitability and efficiency," "improvesoundness," and "improve growth potential." We will effectively allocate and invest management resources to build a solidmanagement foundation and aim for sustainable growth through the creation of new businesses.
Specifically, with Digital Transformation (DX) as the pillar of reform to respond to changes in the social environment, in termsof "improve profitability and efficiency," we are promoting a dominant strategy in collaboration with nursery schools, school
clubs, and children's houses with these initiatives: improve early learning to increase the number of children accepted at existingchildcare support facilities as our existing business, develop and introduce new content, improve profitability by further
optimizing staffing, and establish an integrated child-rearing support system that captures the infant, early childhood, andchildren's period. As a result, we are actively promoting new contracts to double the current number of school clubs andchildren's houses to 200 facilities.
With regard to “improve soundness”, we will expand our human resource education and training systems as the key to childcare
support is "human resources.” At the same time, we will improve the sophistication of operations by improving operational
efficiency. In addition, we will further improve the quality of our childcare support and promote the creation of facilities thatwould be selected by customers by disseminating and implementing both internally and externally the Group's Management
Philosophy, Corporate Message, Operational Philosophy, Childcare and Nurturing Philosophy, and Childcare and Nurturing
Policy, which were renewed and formulated last year. In addition, we have established new measures to reduce operating costs
and to launch foodservice business using central kitchens, including measures to realize small-scale headquarters by eliminating
wasteful operations through reviewing various operations and improving operational efficiency through systemization.
In terms of "improve growth potential," we launched a new business, “codomel," a child-raising support platform in which users
can individually sell and purchase used goods over the Internet focused on childrearing-related supplies (e.g., baby supplies andclothing), products highly needed by the childrearing generations.
In the future, we intend to expand our various services and businesses not only domestically but also internationally, including
collaboration with various companies, introduction and dispatch of service providers and professional personnel, on-demand
streaming of professional training, and development of new food businesses using central kitchens.
In addition, the Group has provided support for children with developmental concerns through its response to developmental
support services and providing visiting support services at childcare facilities. To expand support for children with potential
developmental disabilities, we will develop a new business of multi-functional facilities and visiting services based on our
experience in providing highly specialized developmental support based on our expertise in childcare support. We will provide
such childcare support that is closer to more children and their parents.

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As for the new facility openings, the Group has opened a total of 14 facilities during the first quarter of the fiscal year ending
March 2023 according to the plan, including 2 nursery schools (2 in Tokyo) and 12 school clubs and children's houses (12 in
Tokyo).
(Nursery school)
Asc Musashi-Koganei Minamiguchi Nursery School(Apr. 1, 2022)

Mitaka City Flexible Childcare Center Hinata(Apr. 1, 2022)(School club/Children's house)
Takenotsuka School Club

(Apr. 1, 2022)

Takaban Elementary School Club

(Apr. 1, 2022)

Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 1(Apr. 1, 2022)

Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 2(Apr. 1, 2022)

Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 3(Apr. 1, 2022)

Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 1(Apr. 1, 2022)

Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 2(Apr. 1, 2022)

Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 3(Apr. 1, 2022)

Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 1(Apr. 1, 2022)

Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 2(Apr. 1, 2022)

Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 3(Apr. 1, 2022)

Bunkyo-ku Meidai Temporary Chidcare Room

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

As a result, the Group came to have 209 nursery schools, 89 school clubs, 10 children's houses, making a total of 308 facilities
for supporting child-raising at the end of June 2022.
As a result, the Group’s consolidated net sales were 8,596 million yen (up 2.7% year on year), operating income was 726 million
yen (up 307.6% year on year), ordinary income was 739 million yen (up 296.1% year on year), and net income attributable toowners of parent was 485 million yen (up 359.1% year on year).
The major factors are as follows:
Despite the complete lifting of the stricter COVID-19 measures, the number of new cases of the infection has been fluctuating,and the operating environment has been severe, with each our facility becoming partially closed. However, the number ofchildren accepted at existing facilities increased due to create facilities that would be selected by customers, throughimplementing online facility tours and online learning programs such as English, gymnastics, eurhythmics and dance, as well as
introducing a new early learning program even under the COVID-19 crisis. As a result, net sales increased by 2.7% year on year.
Operating income jumped by 307.6% year on year. The factor is that net sales increased due to the opening of new facilities andthe number of children accepted increased during the current fiscal year as a result of the various measures described above. In
addition, our Group worked to improve profitability at each facility and curtail expenses by conducting efficient operations
through the reallocation of personnel at each facility, recruitment activities, and reviewing the ordering system for various
equipment, and there were special factors in the previous fiscal year such as an increase in the allowance for bonuses due to achange in the applicable period for bonuses following the introduction of a new personnel system, and an increase in expenses
associated with the introduction of a new system.
Ordinary income and net income attributable to owners of parent also increased significantly, up by 296.1% year on year, and by
359.1% year on year, respectively, due to the growth in net sales and the increase in expenses in the previous fiscal year in thespecial factors described above.

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(2) Financial Position
As for the financial position at the end of the first quarter of the current fiscal year, the total assets amounted to 33,656 million
yen (down 617 million yen from the end of the previous fiscal year).
Current assets totaled 20,647 million yen (down 283 million yen), mainly reflecting increases of 149 million yen in others, 40
million yen in cash and deposits, while there were decreases of 431 million yen in accounts receivable, and 24 million yen innotes and accounts receivable - trade.
Fixed assets totaled 13,009 million yen (down 334 million yen). This was mainly due to an increase of 25 million yen in tools,
furniture and fixtures, while there were decreases of 137 million yen in construction in progress, 58 million yen in buildings andstructures, 56 million yen in long-term loans receivable.
Total liabilities amounted to 21,606 million yen (down 692 million yen).
Current liabilities totaled 7,995 million yen (up 103 million yen). This was mainly due to increases of 621 million yen in others,
479 million yen in accounts payable, while there were decreases of 463 million yen in income taxes payable and 428 million yen
in reserve for bonuses.
Fixed liabilities totaled 13,611 million yen (down 795 million yen). This was mainly due to a decrease of 782 million yen in
long- term loans payable.
Total net assets at the end of the first quarter of the current fiscal year totaled 12,049 million yen (up 74 million yen). This was
mainly due to an increase of 90 million yen in retained earnings.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 12, 2022, 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.
Since the number of new cases of COVID-19 has been fluctuating, and the timing of the containment of the infection remains
uncertain, there is a possibility that it will have a major impact on consolidated results depending on the spread and containmentof the infection and other factors in the future.

42. [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Thousand yen)Previous Fiscal Year
(March 31, 2022)

Current First Quarter(June 30, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade17,296,668
68,65017,337,354
44,566Inventories
Accounts receivable - other

63,9002,708,806

44,803
2,277,509

794,924-1,766

944,554-954

20,931,185

20,647,834

12,326,804

12,232,704

Accumulated depreciation and impairment-7,450,666-7,415,471

Buildings and structures, net

4,876,138

4,817,233

Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

203

203

Accumulated depreciation

-121

-128

Machinery, equipment and vehicles, net

82

75

1,106,051

1,146,937

Accumulated depreciation and impairment-820,246-835,604

Tools, furniture and fixtures, net

Tools, furniture and fixtures

285,804

311,332

Land
Construction in progress

435,909
137,030

435,909-

Total tangible fixed assets

5,734,966

5,564,549

136,736

129,140

Intangible assets
Goodwill
Other

37,90442,439Total intangible assets

174,640

171,579

Investment securities
Long-term loans receivable

453,084
2,989,672

430,974
2,932,860

Guarantee deposits
Deferred tax assets

1,903,902
1,579,652

1,869,861
1,553,245

Other
Allowance for doubtful accounts

513,833-6,123491,073-5,139Total investments and other assets

7,434,021

7,272,876

13,343,629

13,009,006

34,274,814

33,656,841

Investments and other assets

Total fixed assets
Total assets5

(Thousand yen)Previous Fiscal Year
(March 31, 2022)

Current First Quarter(June 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of long-term loans payable

165,552
3,113,291

148,7213,086,146

Accounts payable – other
Income taxes payable

1,561,978641,517

2,041,663
177,611

Accrued consumption taxes
Reserve for bonuses

143,892
906,420

108,890477,750

Asset retirement obligation
Other

49,652
1,309,498

23,635
1,930,605

Total current liabilities

7,891,803

7,995,024

Long-term debt
Retirement benefit liability

12,816,466
940,313

12,033,491
953,966

Asset retirement obligation
Other

647,1273,650

624,204
253

Fixed liabilities

Total fixed liabilities

14,407,557

13,611,915

22,299,361

21,606,940

Shareholders’ equity
Capital1,603,955

1,603,955

Capital surplus
Retained earnings

1,449,544
9,117,409

1,449,544
9,208,317

Total liabilities
Net assets

Treasury stock-107,515-107,515

12,063,393

12,154,301

Accumulated other comprehensive income
Valuation difference on available-for- salesecurities
Deferred gains or losses on ledges-49,918-73,020-2,533-175

Remeasurements of defined benefit plans-35,488-31,204

Total shareholders’ equity

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6-87,940-104,400

11,975,452

12,049,901

34,274,814

33,656,841

(2) [Quarterly Consolidated Statements of Income and Statements of Comprehensive Income][Quarterly Consolidated Statement of Income][First Quarter of FY3/23]

Net sales
Cost of sales

Previous First Quarter(Apr. 1, 2021
- June 30, 2021)
8,371,229
7,358,832(Thousand yen)
Current First Quarter(Apr. 1, 2022
- June 30, 2022)
8,596,637
7,152,164

Gross profit

1,012,397

1,444,473

Selling, general and administrative expenses

834,216

718,242

Operating income

178,181726,230

Non-operating income
Interest income

19,46420,021

Other

6,229

11,746

Total non-operating income

25,694

31,768Interest expenses
Other

15,527
1,662

18,092499

Total non-operating expenses

17,19018,592

186,685

739,40635

100

Non-operating expenses

Ordinary income
Extraordinary loss
Loss on retirement of fixed assets

35

100

Income before income taxes and others

Total extraordinary loss

186,650

739,306

Corporate, inhabitant and enterprise taxes
Income taxes-deferred

139,424-58,452

221,481
32,712

Total income tax

80,972

254,194

Net income

105,677

485,112Net income attributable to owners of parent

105,677

485,1127

[Quarterly Consolidated Statement of Comprehensive Income][First Quarter of FY3/23]
Previous First Quarter(Apr. 1, 2021
- June 30, 2021)
105,677(Thousand yen)
Current First Quarter(Apr. 1, 2022
- June 30, 2022)
485,112Valuation difference on available-for- sale securities
Deferred gains or losses on ledges

10,782-470-23,101
2,357

Remeasurements of defined benefit plans

5,199

4,283

Net income
Total accumulated other comprehensive income

15,511-16,460

Comprehensive income

Total other comprehensive income

121,188468,652

BreakdownComprehensive income attributable to owners of parent

121,188468,6528

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)First quarter of FY3/23 (April 1, 2022 – June 30, 2022)
None applicable.
(Notes if there is a significant change in the amount of shareholders' equity)
First quarter of FY3/23 (April 1, 2022 – June 30, 2022)
None applicable.
(Changes in accounting policies)(Application of guidelines for the application of accounting standard for fair value measurement, etc.)
Guidelines for the Application of the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 31, June 17, 2021,
hereinafter referred to as the "Guidelines for the Application of the Fair Value Measurement Accounting Standard") and otherstandards have been applied from the beginning of the first quarter of the current fiscal year. In accordance with the transitional
treatment stipulated in Article 27-2 of the Guidelines for the Application of the Fair Value Measurement Accounting Standard,
the new accounting policy stipulated by the Guidelines for the Application of the Fair Value Measurement Accounting Standard
will be applied in the future. The application of this standard has no effect on the quarterly consolidated financial statement.

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