For the smiles of children…

JP-HOLDINGS, INC.
The No.1 operator of children’s daycare services in Japan

2nd Quarter Financial Results for the Fiscal Year ending March 2017

Company Profile
Company Name

JP-HOLDINGS, INC.

Listed Market

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

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

Representative

Mr. Kazuhiro Ogita, Representative Director

No. of Employees

Employees: 2,746 / Part-time workers: 1,955*As of September-end 2016
Japan Nursery Service Inc. (Capital stock: 99 million yen / Wholly owned subsidiary)
Shikoku Nursery Service Inc. (Capital stock: 10 million yen / 51% owned subsidiary)
J Kitchen Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)

Consolidated Subsidiaries

J Cast Inc. (Capital stock: 10.4 million yen / Wholly owned subsidiary)
J Planning Sale Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
Japan Nursery Institute for General Research (Capital stock: 10 million yen / Wholly owned subsidiary)
Amenity Life Inc.(Capital stock: 70 million yen / Wholly owned subsidiary)
Nursery Service (Japan Nursery Service, Shikoku Nursery Service and Amenity Life)
Gymnastics, English and Eurhythmics Schools Contracting Service (J Cast)

Business Areas

Food Service (J Kitchen)
Distribution Service (J Planning Sale)
Researching , Training and Consulting Service (Japan Nursery Institute for General Research)*Sotetsu Amenity Life K.K. was affiliated by obtaining 100% stock and renamed as Amenity Life Inc..
*No. of employees aforementioned includes Amenity Life Inc. employees.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

2

INDEX
1) Company Overview: p.4
2) The Opportunity: p. 9
3) Bottlenecks to Growth & Our Solutions: p.15
4) 2Q FY3/17 Results: p.22
5) JP Holdings’ Strengths: p.28
6) Mid-term Management Plan & Growth Strategy: p.31
7) Appendix: p. 37

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3

Company Overview

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4

(1) Image of JP Holdings’ Group Structure
J CastJ Kitchen

Teacher

Nurseryschool teacher

Nutritionist

EnglishGymnastics
Eurhythmics

Childcaregoods

J Planning Sale

Lunch

Childcare

Japan Nursery
Service

We will take fulladvantage of groupsynergies – fromfacilities andequipment to thequality improvementof staff

Training

Japan Nursery Institute forGeneral Research

Copyright©JP-HOLDINGS,INC All Rights Reserved.

5

(2) JP Holdings is the largest operator in the Industry

We have significantly pulled away from our rivals to stay as the largest operator in theindustry. We have held the number one spot for sales in the childcare services industry forthe past five years in a row.



Our strengths lie in the wealth of our management, results (number, scale, location andform), our relationship with major municipalities in Japan and management that makes the
maximum use of economies of scale to achieve a reduction in costs.
Sales of Conpanies in the Childcare Industry(Unit: million yen)
25000
JP Holdings

Rival A

Rival B

Rival C

Rival D

Rival E

20000

15000

10000

5000

*Rival C’s sales is estimated number by JPHD
0
2011

2012

2013

2014

2015

2016

Source: Based on the past six years of the Nikkei MJ’s Service Industry Survey

Copyright©JP-HOLDINGS,INC All Rights Reserved.

6

(3) Business Expansion 1: No. of Facilities Operated
FY3/01

FY3/02

FY/03

FY3/04

FY3/05

FY3/06

FY3/07

Licensedschools(Public-private
management)
Licensedschools(Private
management)

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15As at
Sep.2016

FY3/16

2

3

5

8

10

11

14

16

14

10

10

1

4

9

20

28

43

61

71

85

102

118

134

TokyoApproved

1

7

10

13

18

21

22

24

26

26

26

26

26

26

24

NonlicensedMunicipalltyAuth
orised

2

2

2

3

3

4

7

5

4

4

4

4

4

1

0

Non-licensedOthernonlicensed

1

3

4

3

2

0

0

0

0

0

0

0

0

4

3

4

4

4

4

3

2

2

1

0

0

0

0

0

0

0

School clubs

9

18

22

26

37

39

40

43

46

55

62

Children's houses

5

6

8

6

9

7

8

8

8

10

12

46

63

86

98

129

148

163

182

200

224

249

Joint establishmentwith
amusementfacilities

2

3

Private school clubs
Total

4
2

3

8

16

20

24

*We reviewed the count by management structure in the 2Q of FY3/16 and changed three licensed schools (private-public management) to other non-licensed nursery schools
300*Facilities as at Sep 30 2016 include those operated by Amenity Life Inc. which was affiliated on the same day (4 Licensed nurseries & 3 private school clubs)4
12
Private school clubs
Children's houses
School clubs
Joint establishmentwith amusementfacilities
Non-licensedOthernon-licensed
Non-licensedMunicipalltyAuthorised
TokyoApproved
Licensed schools(Private management)
Licensed schools(Public-private management)

200

100

10
8
8
8
7
9

5
9
0

FY3/01

FY3/02

FY/03

6
18

7

10

13

18
4

21
9

FY3/04

FY3/05

FY3/06

FY3/07

FY3/08

8
22
22
20
5
FY3/096
26

FY3/10

26

26
26
43

26

24
26

26

37

24
28
8

39

46

43

40

62
55

71

61

85

102

134

118

10

11

14

16

14

10

10

FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16As at
Sep.2016

Copyright©JP-HOLDINGS,INC All Rights Reserved.

7

(4) Business Expansion 2: No. of Facilities Operated by Region
No. of Facilities Operated(2Q FY3/17)
Nursery schools: 171
School clubs: 62Children’s houses: 12
Private school clubs: 4
Total: 249

Kyushu・Okinawa
Licensed nurseryschools：2

Hokkaido
Licensed nurseryschools: 3

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

Kinki
Licensed nurseryschools: 6

Kanto
Lic. nursery schools: 115
Non-lic. nursery schools: 27
School clubs: 59
Children’s houses: 6
Private school clubs: 4*Facilities as at Sep 30 2016,include those operated by Amenity Life Inc. which was affiliated on the same day (4 Licensed nurseries & 3 private school clubs )Copyright©JP-HOLDINGS,INC All Rights Reserved.

8

The Opportunity

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9No. of Children
on the Waiting
List
Hokkaido
94
Aomori0
Iwate
194
Miyagi
638
Akita
33
Yamagata
0
Fukushima
462
Ibaragi
382
Tochigi
155
Gumma
5
Saitama
1,026
Chiba
1,460
Tokyo
8,466
東京都
Kanagawa
497
神奈川県
Niigata0
新潟県
Toyama0
富山県
Ishikawa
0
石川県
Fukui
0
福井県
山梨県
Yamanashi0
長野県
Nagano
0
岐阜県
Gifu
23
静岡県
Shizuoka449
愛知県
Aichi三重県
202
Mie滋賀県
101
京都府
Shiga
339
大阪府
Kyoto
64
兵庫県
Osaka
1,434
Hyogo
1,050
Nara
260
Wakayama
10
Tottori0
Shimane38
Okayama875
Hiroshima
161
Yamaguchi
65
Tokushima
60
Kagawa
324
Ehime
110
Kochi
42
Fukuoka
948
Saga
18
Nagasaki70
Kumamoto
233
Oita
370
Miyazaki64
Kagoshima
295
Okinawa
2,536
計
23,553Prefecture(1) Current Waiting List Situation


The child day care waiting list problem
remains serious. This is especially so in theTokyo metropolitan area and prefectures where
major cities (e.g. designated cities) are located.
(Refer to the map on the right.)

The number of children on waiting lists as ofApril 2016 increased by 386 from April 2015
to 23,553.



The Ministry of Health, Labour andWelfare(MHLW) published the potential
number of children on waiting lists in March
2016 based on the number of people extending
their childcare leave or giving up on searching
for work who were previously excluded fromthese statistics. Together with the number ofchildren already known to be on waiting
lists, this has seen the grand total rise toapproximately 60,000 (as of April 2015).

National Waiting List Map(April 1, 2016)

Current as of April 1 ,2016

No of Prefectures

Less than 100
100 or more but less than 500
500 or more less than 1,000
1,000 or more less than 3,000
3,000 or more but less than 5,000
5,000 or more

(22)
(16)
(13)
(15)
(10)
(11)

Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2016)

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10

(2) Gov’t efforts to eliminate day care waiting lists
Day Care Waiting List Elimination(accelerated plan)（Enacted April 2013）

Create 400,000 new day care spots between 2013 and 2017-end

Secure Extra Day Carers Plan
（Enacted Jan 2015）

Secure 70,000 new qualified day carers by the 2017-end

Urgent Measures to achieve
100mn Total Active Society（Compiled in Nov 2015）

Expand the 2017-end target of 400,000 day care places to 500,000 including 90,000 day
carers to accommodate thisUrgent Acceleration to Eliminate
Day Care Waiting Lists Plan
（Announced Mar 2016）

Coordinating cities/pref. to actively drive plans to eliminate child day care waiting lists by:①Speed up understanding of current situation ④Strengthen/expand current business further②More workplace flexibility to secure staff⑤Aggressive deployment of workplace childcare③Ensure the promotion of facility expansion

Dynamic Engagement of All
Citizens Plan
（June 2016 Cabinet decision）

Improve salaries of day carers by 2%
Eliminate gap between child care providers withskills and experiences and female workers acrossall industries

Action Plan for
Seamless Nursery Service(Announced Sep 2016)

Supporting municipals engage in seamlessly eliminating child day care waiting lists with thefollowing measures:①Further promotion of facilities construction and securing nursery staff②Introduce a nursery reservation system for infants after mothers’ childcare leave③Deploy nursery concierges who can satisfy parents’ needs④Clarify the exemption of property tax on lenders to nurseries
Source：Prime Minister’s Office home page- ”Preventing Child day care waiting lists – working to create
an environment of raising children in peace

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11

(3) Dynamic Engagement of All Citizens Plan
June 2nd, 2016 – Cabinet decides “Dynamic Engagement of All Citizens Plan”

・Day care places - Expand the original 400,000 target by 2017-end to 500,000
・Treatment of Day Carers - Improve salaries by 2% (c. ¥6000 per month)Accelerate measures to eliminate the gender pay gap and close the ¥40,000 per month gap for
qualified day care staff to that of all industries

・Secure & develop day carers - expand productivity by ICT and offer expansion of loan forgiveness for day carers
・After school activity clubs - develop places for 300,000 persons by 2019-end
Expanding child day care spaces
YoY comparison(people）

Increase in
day carespacesAfter School Clubs

Treatment of day carers（number）

Low wages have been cited as a cause in theinability to secure additional day carers.

Planned（people）
Clubs
Children unable to useChildren registered・Day Carers：¥3.23m＊ (Women only ¥3.22m)
・All industries：¥4.89m＊ (Women only ¥3.73m）
Day carers see difficulty in a long career pathso average years of service tends to be shorter.

・Day Carer：Length of service 7.6yrs＊
・All Industries：Length of service 12.1yrs＊*MHLW「2015 Survey on wages structure」
2009

2010

2011

2012

2013

2014

2015

2016

Gov’t to prepare additional childcare arrangements for 500,000
children by the end of FY2017 (compared with FY2013)(From FY2018 onward, will ensure adequate spaces.)

Gov’t will eliminate a wage gap between
childcare providers with skills and experiences
and female workers across all industries.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

Prepare extra arrangements of “After‐school Kids’ Clubs for 300,000
children by the end of FY2019 (compared with FY2014)(Look for ways to complete it by the end of FY2018.)

Source; ：Prime Minister’s Office HP: Dynamic Engagement of All Citizens Plan (Overview) June 2, 2016

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12

(4) Favorable Government Budget Trends

Rental expenses in the unit cost of official prices (= the compensation required for operation inorder to satisfy the minimum standards of childcare set forth by the government) have been
greatly increased in FY3/17. Therefore, the building rental fees generated by many of ournursery schools have been reduced (contribution to sales and revenue).
Rental Expenses
Addition Unit Cost in
FY3/16 Per Child(Yen per Month)

Rental Expenses
Addition Unit Cost in
FY3/17 Per Child(Yen per Month)

20

6,500

16,80021 to 30

4,500

11,70031 to 40

4,000

10,40041 to 50

3,600

9,300

51 to 60(*1) 3,000(*2) 7,800

61 to 70

2,600

6,700

71 to 80

2,900

7,500

81 to 90

2,600

6,700

91 to 100

2,300

6,000

101 to 110

2,500

6,500

111 to 120

2,300

6,000

121 to 130

2,100

5,400

131 to 140

2,300

6,000

141 to 150

2,200

5,700

151 to 160

2,000

5,200

161 to 170

2,200

5,700

171 or more

2,000

5,200

Capacity
Category

Case Study in Tokyo with the Highest Unit Costs
This is a trial calculation using the standard nursery school model (60 children
capacity) in our firm.
Calculation by the FY3/16 Unit Cost
Monthly amount per child (Table on the left (*1)): 3,000 yen × 60 children × 12
months= 2,160,000 yen (Annual amount per facility)
Calculation by the FY3/17 Unit Cost
Monthly amount per child (Table on the left (*2)): 7,800 yen × 60 children × 12
months= 5,616,000 yen (Annual amount per facility)
Difference
5,616,000 yen – 2,160,000= 3,456,000 yen (Change in the annual amount per facility)*There are also cases in which such addition is not provided depending on the facility or rental
expenses supported only by municipalities are decreased for the amount of change(consequently this is ±0 yen).

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13

(5) Emergent Action Plan of Tokyo Metropolitan Gov’t for eliminating child day care waiting lists
Announced by Bureau of Social Welfare and Public Health, Tokyo Metropolitan Government on September 9, 2016

First Pillar : Promote setting up of nurseries, etc.
1. Create new subsidy against rising construction costs
2. Initiate new subsidy on rent

25 % lift on national standard of subsidy for construction cost

Promote the development of nurseries by utilizing leased properties such as vacanthouses or shops

3. Promote regular and longer term temporary childcare

4. Expand subsidy on land rental

Add subsidy on regularized temporary childcare (Uniqueinitiative of Tokyo Metropolitan Government)

Targeting rising land price, lift restriction to more than 3 fold of average publishedland price 0.35 million yen/m2 up to a maximum of 20 million yen

5. Encourage use of land owned by Tokyo Metropolitan Government
6. Utilize private land and vacant houses

Enable enterprises to rentTokyo Government land

Secure appropriate properties in cooperation with associations of realestate enterprises and landowners

Second Pillar : Secure Personnel
7. Expand subsidies on rented housing

Extend the support period over 6yrs after recruitment instead of max 5yrs

8. Increase childrearing support staff

Regard teachers of kindergartens and elementary schools, childrearing support
staff etc., as deemed child care staff and employ them subject to their
numbers not exceeding 1/3rd the standard number of qualified child care staff

Third Pillar : Enhance assistance on users
9. Increase nursery concierges

Boost personnel expenses to increase staff to assist parents

10. Reduce burden of non-licensed nurseries users
11. Improve quality of non-licensed nurseries

Assist municipalities to support independent nursery fees

Organize a new patrol team to encourage best practice in non-licensed
nurseries

Resource: Press Release dated September 9, 2016 by Bureau of Social Welfare and Public Health, Tokyo Metropolitan Government*Translated by JPHD

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

14

Bottlenecks to Growth&
Our Solutions

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15

(1) Current Nursery School Teacher Shortage Situation 1
The effective opening to application ratio for nursery school teachers remains at ahigh level. There continues to be a shortage of nursery school teachers on anationwide scale.

The effective opening to application ratio for nursery school teachers in Tokyo isover 6-fold. The employment situation in the metropolitan area remains extremely
difficult.
7

6.24

6
5

Tokyo

4
2.44

3
2

Nationwide0

Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011
Oct 2011
Nov 2011
Dec 2011
Jan 2012
Feb 2012
Mar 2012
Apr 2012
May 2012
Jun 2012
Jul 2012
Aug 2012
Sep 2012
Oct 2012
Nov 2012
Dec 2012
Jan 2013
Feb 2013
Mar 2013
Apr 2013
May 2013
Jun 2013
Jul 2013
Aug 2013
Sep 2013
Oct 2013
Nov 2013
Dec 2013
Jan 2014
Feb 2014
Mar 2014
Apr 2014
May 2014
Jun 2014
Jul 2014
Aug 2014
Sep 2014
Oct 2014
Nov 2014
Dec 2014
Jan 2015
Feb 2015
Mar 2015
Apr 2015
May 2015
Jun 2015
Jul 2015
Aug 2015
Sep 2015
Oct 2015
Nov 2015
Dec 2015
Jan 2016
Feb 2016
Mar 2016
Apr 2016
May 2016
Jun 2016
Jul 2016
Aug 2016

1

Source: Ministry of Health, Labour and Welfare Employment Security Bureau’s General job placements (Report on Employment Service)

Copyright©JP-HOLDINGS,INC All Rights Reserved.

16

(2) Current Nursery School
FY3/15 Specified Nursery School Teacher Training Institute
Graduate Employment Situation (%)
Teacher Shortage Situation 2

About 40,000 training institute graduates become qualified
childcare personnel every year. However, only about halfof these people actually end up working as nursery school
teachers in nursery schools.
It is very important to reclaim the value and attraction of
the nursery school teacher qualification itself and thenmake this well-known and promote it.

Other: 16.8

Day care Centres
51.8

Kindergartens:
21.2

Facilities for theelderly: 0.9
Facilities for thedisabled : 0.6
Facilities for theintellectuallydisabled: 2.7

Children’s
operations: 2.3

Child welfare
facilities: 3.7

Specified Nursery School Teacher Training Institute Graduate (Nursery School Teacher Qualified People) Employment Situation
Total
FY

Nursery Schools

Child Welfare
Facilities

Children’sOperations

Facilities for theintellectuallydisabled

Facilities for thedisabled

Facilities for theelderly

Kindergartens

Other

People%People%People%People%People%People%People%People%People%09

36,743100.0

18,274

49.7

1,198

3.3

838

2.3

1,064

2.9

155

0.4

415

1.1

7,528

20.5

7,271

19.8

10

34,961

100.0

17,862

51.1

1,085

3.1

664

1.9

932

2.7

177

0.5

406

1.2

7,545

21.6

6,290

18.0

11

36,346100.0

18,618

51.2

1,161

3.2

837

2.3

996

2.7

184

0.5

369

1.0

8,074

22.2

6,107

16.8

12

38,592100.0

19,951

51.7

1,368

3.5

792

2.1

1,062

2.8

194

0.5

361

0.9

8,363

21.7

6,501

16.8

13

39,456100.0

20,491

51.9

1,319

3.3

900

2.3

1,050

2.7

278

0.7

423

1.1

8,326

21.1

6,669

16.9

14

41,845100.0

21,692

51.8

1,558

3.7

949

2.3

1,138

2.7

250

0.6

361

0.9

8,869

21.2

7,028

16.8

Source: Research by the Day Care Division in the Equal Employment, Children and Families Bureau in the Ministry of Health, Labour and Welfare

Copyright©JP-HOLDINGS,INC All Rights Reserved.

17

(3) Current Nursery School Teacher Remuneration Situation (1)Wage Level Comparison of Nursery School
Teachers and Relevant Jobs
(FY3/16) (Unit: 10,000 Yen)
35
30
25
20
15

33.3

All job
categories



The average monthly salary for nursery school teachers in
FY3/16 across Japan was 219,000 yen. This is 114,000 yen
less than the average 333,000 yen salary for all jobs.



There was an approximately 2% increase on the salary due
to budgetary measures from the government in FY3/16.
Nevertheless, a further increase is desired.



The government’s policy* is to improve the salary of nurseryschool teachers with an additional increase of approximately
6,000 yen per month from FY2017. (This works out to be
12,000 yen per month including the increase in FY3/16.)

32.9

21.9

22.9

Nurseryschoolteachers

Kindergarten
teachers

Nurses

22.3

22.5

Welfarefacilitycare
personnelHomehelpers*Declaration by Prime Minister Abe at the Conference to Promote theDynamic Engagement of All Citizens on April 26, 2016
Total (Male + Female)
Component Average
Ratio
Age
All job categories
Nursery school
teacher
Kindergarten
teacher
Nurse
Welfare facility
care
personnel
Home helper

Length ofService(Years)Male
Scheduled
Cash
Component Average
Earnings
Ratio
Age
(Yen)

FemaleLength ofService(Years)Scheduled
Cash
Component Average
Earnings
Ratio
Age
(Yen)

Length ofService(Years)Scheduled
Cash
Earnings
(Yen)

100%

42.3

12.1

333,000

66.6%

43.1

13.5

370,000

33.4%

40.7

9.4

259,000

100%

35.0

7.6

219,000

5.3%

30.9

5.8

238,000

94.7%

35.2

7.7

218,000

100%

32.3

7.5

229,000

5.1%

40.5

11.6

327,000

94.9%

31.9

7.3

224,000

100%

38.2

7.8

329,000

9.3%

35.2

6.7

335,000

90.7%

38.5

7.9

328,000

100%

39.7

6.0

223,000

34.4%

37.3

5.9

238,000

65.6%

41.0

6.1

215,000

100%

45.3

6.6

225,000

22.2%

37.5

4.3

237,000

77.8%

47.6

7.2

221,000

Source: Ministry of Health, Labour and Welfare’s Basic Survey on Wage Structure (FY3/16)

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18

(4) Current Nursery School Teacher Remuneration Situation (2)Furthermore, in addition to increasing salary levels to secure nursery school
teachers, it is necessary to increase the number of personnel and reduce
office/administrative work.
Desired Workplace Improvements (%)

70

60

59

50

40.4
40
34.9
31.5
30

27.4

20.3
20
13.7

13.5

12.7

12.6

10

0

Increase in salaryand bonuses

Increase in the
Reduction in
Improvement in
Improvement in work
Communication
Enhancement in Enhancement in the School principles andnumber of personnel office/administrative unfulfilled vacation
shiftsbetween personnel training opportunities consulting structure
operational policy
work(e.g. paid vacation)

Stabilization of
employment(Permanent
employeeappointments)

Source: Tokyo Metropolitan Government Bureau of Social Welfare and Public Health’ Tokyo Nursery School Teacher Investigation Report (March 2014)

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19

(5) Our Plan to Secure Nursery School Teachers (1)
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

National
Average(10,000
Yen)

326.93324.08322.52328.44324.94324.23315.03309.80316.70323.34

Our
Average(10,000
Yen)

282.57285.24287.05300.86

314.60310.83323.88332.35331.41354.14A ve r a g e A n n u a l S a l a r y o f N u r s e r y S c h o o lTeachers (10,000 Yen)
National average calculation method = Monthly salary at thetime of the survey every year (June) × 12 months + Bonuses in
the one year prior to the time of the survey

370

National
全国平均
average

Our average has been above thenational average since 2012.



While leveraging the budgetaryprovisions of the government, we
continue to improve wages andexceed the government’s
expectations.



We’ve raised wages by another
4% in 2016 as well

JP Holdings
弊社平均
average

350
330
310
290
270
250

Source: Company data based on the Ministry of Health, Labour and Welfare’s Basic Survey
on Wage Structure

Copyright©JP-HOLDINGS,INC All Rights Reserved.

20

(6) Our Plan to Secure Nursery School Teachers (2)We hold seminars and bus tours to visit nursery schools according to career level around Japan.



We started a benefit scholarship system in FY3/16. This supports those aspiring to be nursery school
teachers from their student days and leads to their desire to join our company.



We expanded recruitment of kindergarten teachers who are willing to become qualified nursery staff withsponsored support.



We started training course recruitment for those who are unqualified but who are looking to pass thenational test at our company in FY3/16.

Reduce the daily burdens on day carers by employing administration staff and janitors
•
•

•
•
•

Dormitory andboarding fee
assistance
Employment
support money

Dormitory andboarding fee
assistance
Employment
support money
Benefitscholarships

Mid-career
recruitment

Reappoint
ment
recruitment

New
graduate
recruitment

Nonqualified
personnel
recruitment• Reappointment
seminars

Copyright©JP-HOLDINGS,INC All Rights Reserved.

••

Qualificationacquisition
courseNursery school
assistantrecruitment

21

2Q FY3/17 Results

Copyright©JP-HOLDINGS,INC All Rights Reserved.

22

(1) 2Q FY3/17 Financial Highlights
2Q FY3/16

Net sales (million yen)

2Q FY3/17

ChangeYear on Year
Comparison
(%)

9,941

10,973

1,031

10.4

Operating income (million yen)

588

351

△ 236

△ 40.3

Ordinary income (million yen)

637

437

△ 200

△ 31.4

Net income attributable to owners ofparent (million yen)

419

279

△ 139

△ 33.3

Net income per share (yen)

5.02

3.34

△ 1.68―

Net assets per share (yen)

69.81

78.28

8.47

―

Shareholders’ equity ratio (%)

34.6

29.5

△ 5.1

―

Copyright©JP-HOLDINGS,INC All Rights Reserved.

23

(2) FY3/17 Expected New Openings
We are scheduled to open 13 licensed nursery schools and 10 school clubs/children’s houses in FY3/17. Of these, we have alreadyopened 12 licensed nursery schools, 7 school clubs , 3 children’s houses and 1 private school club as of the end of September 2016.
*In addition to the above, our existing Asc Toyosu Nursery School became licensed at its present location on April 1, 2016. Moreover, we are scheduled tore- open one existing non-licensed nursery school under license after July. We are also planning to open 2 private school clubs (one location undecided)*Facilities as at Sep 30 2016 do not include those operated by Amenity Life Inc. which was affiliated as on the same day(4 Licensed nurseries & 3 private school
clubs)
Completed Opening

Scheduled Opening

First Expansion
Shiga: 1 licensed nurseryschool• Asc Gotenhama Nursery
SchoolFirst Expansion
Okinawa Naha: 1 licensed
nursery school・ Asc Kokuba Nursery School

Osaka: 1 licensed nursery school• Asc Kamishinden Nursery
SchoolTokyo: 3 licensed nursery schools• Asc Ikebukuro Honcho Nursery
School• Asc Shiba Koen Nursery
School・ Asc Ryuhoku Nursery School
Tokyo: 5 school clubs• Takecho Children’s Club• Sengoku No. 1 CultivationRoom• Sengoku No. 2 Cultivation
Room• Meidai Cultivation Room
• Hanabatake School ClubTokyo: 1 children’s house• Sengoku Children’s House
Tokyo: 1 private school club・AEL Yushima

First Expansion

Yamagata: 1 licensed nursery school• Asc Miharashi-no Oka Nursery
SchoolMiyagi: 1 licensed nursery school• Asc Yamada Kagitori Nursery
SchoolFirst Expansion
Fukushima - Koriyama: 1
licensed nursery school(Opening scheduled for October
2016)

First Expansion
Fukuoka: 1 licensed nurseryschool• Asc Higashihie Nursery
SchoolAichi: 2 licensed nursery schools• Asc Meito Fujigaoka Nursery
School• Asc Shidami Nursery School

Aichi (cont’d) Owariasahi: 2 school clubs• Owariasahi Shibukawa Children’s Club
• Owariasahi Zuiho Children’s Club
Owariasahi: 2 children’s houses• Owariasahi Shibukawa Children’sHouse• Owariasahi Zuiho Children’s House

Copyright©JP-HOLDINGS,INC All Rights Reserved.

Kanagawa
Fujisawa: 1 licensed nurseryschool・Asc Tsujido Nursery School24

(3) 2Q FY3/17 Profit and Loss Statement
2Q FY3/16
Amount(Million Yen)

Year on Year
Comparison

2Q FY3/17

Component
Component
AmountAmountRatio
Ratio(Million Yen)
(Million Yen)(%)(%)

Rate of
Change(%)

Net sales

9,941

100.0

10,973

100.0

1,031

10.4

Cost of sales

8,565

86.2

9,407

85.7

841

9.8

Gross profit

1,375

13.8

1,566

14.3

190

13.8

SG & A expenses

787

7.9

1,215

11.1

427

54.3

Operating income

588

5.9

351

3.2

△ 236

△ 40.3Non-operating income

69

0.7

114

1.0

45

65.0

Non-operating expenses

20

0.2

28

0.3

8

42.5

Ordinary income

637

6.4

437

4.0

△ 200

△ 31.4

Net income attributable to ownersof parent

419

4.2

279

2.5

△ 139

△ 33.3Copyright©JP-HOLDINGS,INC All Rights Reserved.

25

(4) 2Q FY3/17 Balance Sheet
FY3/16(Million Yen)

2Q FY3/17(Million Yen)

Amount of Change(Million Yen)

6,954

7,104

150

Cash and cash deposits

3,777

4,303

525

Accounts receivable

1,770

1,571

△ 198

14,565

15,191

626

8,900

8,913

12

12

415

403

5,652

5,863

210

Total assets

21,51922,296

777

Current liabilities

5,949

6,255

305

2,935

2,876

△ 58

691

463

△ 228

8,998

9,453

454

8,457

8,732

275

Total liabilities

14,94815,709760

Net assets

6,570

6,587

16

Total liabilities and net assets

21,51922,296

777

Current assets

Non-current assets
Property and equipment, net
Intangible fixed assets
Investment and other assets

Long-term debt within one year
maturity

Note and accounts payableNon-current liabilities
Long-term debt

Copyright©JP-HOLDINGS,INC All Rights Reserved.

26

(5) 2Q FY3/17 Statement of Cash Flows2Q FY3/16(Million Yen)

2Q FY3/17(Million Yen)

Year on Year
Comparison(Million Yen)

1,001

1,101

99

Income before income taxes and others

612

436

△ 175

Depreciation costs

297

313

15

Decrease (increase) in accounts receivable-other

199

310

111

Income taxes paid

△ 365

△ 412

△ 47

Cash flows from investing activities△ 326△ 1,065

△ 739

△ 382

△ 423

△ 40

△ 1,848

489

2,338

Proceeds from long-term loans payable

－

1,762

1,762

Increase (decrease) in cash and cash equivalents△ 1,173

525

1,698

1,718

4,324

2,606

Cash flows from operating activities

Payments for the purchase of property and equipment
Cash flows from financing activities

Cash and cash equivalents at end of 2Q

Copyrights©JP-HOLDINGS,INC All Rights Reserved.

27

JP Holding’s Strengths

Copyright©JP-HOLDINGS,INC All Rights Reserved.

28

(1) Provision of High-quality Childcare Conforming to Our
Management Philosophy
Prioritizing safety andpeace of mind
• Creation of a
specialized
department focusedon safety
management.
• Fixtures with thoroughfall prevention• Cushion floor infantrooms• Development ofvarious manuals (e.g.
how to deal withdisasters and abuse)• AED deployment in all
facilities• Emergency lifesaving
training for all staff
members• Structure to shareaccident cases

Facilities that offer
unforgettable
memories• Gymnastics, English
and eurhythmics
courses• Event foods, local
foods and cooking
childcare• Three elements of ourchildcare philosophy:
Strength to grow by
yourself, strength tostretch yourself laterand childcare withyour five senses

Facilities where staff
members enjoy
working

Facilities that are
truly needed• In-house activity
encouragement(activity expenseassistance)• In-house sports days
to deepen friendshipamong employees• Multi-level employee
care structure bymanagers andsupervisors• Facility patrol support
by development support
teams• Suku-Suku Plus childsupport advisory center(Rehabilitation support
project)• Dietary education
activity support by foodand agriculture
guidance teams• Extended-hours
childcare and temporary
use

(4)

(2)

(1)

Copyright©JP-HOLDINGS,INC All Rights Reserved.

(3)(1) Emergency Life-saving Training(2) Example of Event Food
(3) Gymnastics Program 29(4) Cooking Childcare

(2) Expansion of the Share of Companies LimitedThe ratio accounted for by licensed nursery schools established by stockcompanies is still low at 3.9% at the beginning of FY3/16. Nevertheless, this sharehas been rapidly expanding in recent years (annual growth rate: 30% to 40%).

In addition, there is room for private outsourcing of public nursery schools to grow in
the future. (This has been gradually decreasing in recent years.)Situation of Licensing by Principal Actor in Nursery Schools
Municipalities (Public)

Social Welfare Corporations

Companies limited

Total

Component GrowthComponen GrowthComponent Growth(Schools) Ratio (%) Rate (%) (Schools) t Ratio (%) Rate (%) (Schools) Ratio (%) Rate (%)

Other(Schools)

Component Growth
Ratio (%) Rate (%)

April 1, 2010

10,766

46.7-

11,026

47.8

-

215

0.9

-

1,061

23,068100.0-

April 1, 2011

10,515

45.0

△ 2.3

11,434

48.9

3.7

288

1.2

34.0

1,148

23,385100.0

1.4

April 1, 2012

10,275

43.3

△ 2.3

11,873

50.1

3.8

376

1.6

30.6

1,187

23,711100.0

1.4

April 1, 2013

10,033

41.7

△ 2.4

12,339

51.3

3.9

474

2.0

26.1

1,192

24,038100.0

1.4

April 1, 2014

9,644

39.5

△ 3.9

12,893

52.8

4.5

657

2.7

38.6

1,230

24,424100.0

1.6

April 1, 2015

9,212

39.1

△ 4.4

12,382

52.6

△ 3.9

927

3.9

41.0

1,016

23,537

100.0

△ 3.6

Source: We created this table based on the Ministry of Health, Labour and Welfare’s Situation of Licensing by Principal Actor in Nursery Schools

Copyright©JP-HOLDINGS,INC All Rights Reserved.

30

Mid-term Management Plan&
Growth Strategy

Copyright©JP-HOLDINGS,INC All Rights Reserved.

31

(1) Planned Numerical Targets
Consolidated Results (Unit: million yen)
30,0002,000

300

No. of Managed Facilities at the End of the
Fiscal Year (Unit: schools/facilities)*We have totaled the number of school clubs andchildren’s houses for the forecast numbers only.

1,800
25,000

1,600
1,400

20,000

250

10
200

8

1,200
15,000

1,000

8
150

800
10,000

600
400

5,000

100
8
22
50
56

200
0

0

Net sales (left axis)
Ordinary income (right axis)


6
26
66

9
37

83

8

7
39

102

82

75

55

46

43

40

115

131

146

159

172

183

0

Nursery schools
School clubs
Children's house*Facilities as at Sep 30 2016 do notinclude those operated by Amenity Life
Inc. which was affiliated on the sameday(4 Licensed nurseries & 3 private
school clubs)

We revised our forecast as follows in the Announcement on the Review of Mid-term Management Plan dated May 10, 2016.

FY3/17 earnings forecast: Net sales of 22.3 billion yen and ordinary income of 1.6 billion yen with 13 nursery schools to be opened
and 10 school clubs/children’s houses to be opened

FY3/18 earnings forecast: Net sales of 24.0 billion yen and ordinary income of 1.9 billion yen with 11 nursery schools to be opened
and 7 school clubs/children’s houses to be opened
Copyright©JP-HOLDINGS,INC All Rights Reserved.

32

(2) For Plan Implementation
Key Objectives in the Period of the Plan
(1)

Enhance security measures and further improve the quality of childcare(2)

Increase the number of children accepted by opening new facilities and increasing the number of nursery school teachers in existing facilities(3)

Increase investment in human resources (strengthen recruitment activities, enhance human resource development and review the personnel
assessment system)(4)

Re-develop our business management structure (enhance our business risk management structure and strengthen group company
cooperation)(5)

Start work on new business aimed at expanding our revenue base (private school clubs and external sales of our existing services)

Measures to Achieve the Key Objectives(1) Further strengthen our safety management structure (create a specialized department and promote cross-organizational structureenhancement)(2) Raise the salary of employees (we raised the salary of nursery school teachers by 8% in FY3/16 and plan to raise it again by 4% in FY3/17)(3) Introduce systems in each field (reduce workload and optimize business management)(4) Further enhance policies aimed at securing nursery school teachers (increase the recruitment expenses budget)

Copyright©JP-HOLDINGS,INC All Rights Reserved.

33

(3) Specific Initiatives (1)≪Strengthening the Safety
Management System≫
April 2016
Safety Measures Divisionfounded≪Strengthening hiring
activity≫
June 13th, 2016
Tokyo HQ relocation≪Securing day carers≫
Review personnel evaluation
system & raise salaries 4% in2016≪Starting new businesses≫
Private after school club
『AEL Yushima』intended
opening Sep 2016

≪Reduce burden on workforce≫
Promote ICT on nursery sites withtablet devices

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

34

(4) Specific Initiatives (2)Acquired 100% of Sotetsu Amenities Life from Sotetsu Holdings K.K.
on September 2016 and renamed as Amenity Life Inc.
Acquisition Target
Name

Amenity Life Inc.

Address

17F Chikusa New Tower Bldg., 3-15-31
Aoi, Higashi-ku, Nagoya-shi Aichi

Business typeDay care centre and nursery management

Capital

70 million yen
Net sales

570m¥

Operating income

49m¥

Ordinary income

49m¥

Net income

30m¥

FY3/16

Licensed day care

4 (in Yokohama)

Private School Club

3 (in Yokohama)• Strengthening one of themost important bases in
Yokohama• Foothold to expand
private school children
club facilities

Impact on FY3/17 results expected to be minor.

Facilities

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

35

(4) Specific Initiatives (3)Intention to establish a joint-venture with Shiseido
Company, Limited with a focus on the entrusted
operation of in-house nurseries, scheduled tostart its operation in February 2017.



Shareholding ratio between the two parties is
Shiseido 51% & JPHD 49%



Joint venture will provide an entrusted operational
service for a new in-house nursery which
Shiseido will set up on its Kakegawa factory site
in autumn 2017.
Outline of the joint venture
・Provide the setup consulting andentrusted operational service toenterprises interested in in-housenurseries
・Cooperate with University Center forBaby Science to conduct new researchon the behavioral development ofchildren・Start the new business of inhouse nurseries
・Create a new childrearing
support service based on the
study of children’s behavioral
development

Impact on FY3/17 results expected to be minor.

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

36

Appendix

Copyright©JP-HOLDINGS,INC All Rights Reserved.

37

(1) Our Group Business Areas
Target of official prices (compensation for education andchildcare services set by the government) = Management isguaranteed by the government budget

Non-targets of official prices (compensation for education and childcare
services set by the government)

Kinderg
artensNon-licensed nursery schools(With municipality independentassistance)

Non-licensed nursery schools(Without municipality
independent assistance)

Tokyo licensed nurseryschools, etc.

Baby hotels, day-care centers
and nursing rooms at events

Public(Public
management)

Licensedchildren schools

Licensed nurseryschools

Public(Public-private
management)

PrivateOur business areas

Our management is focused on being designated managers* of private licensed nursery schools and public
licensed nursery schools

We also manage non-licensed nursery schools through independent assistance from municipalities (e.g.
Tokyo licensed nursery schools).

*Operation is guaranteed for schools managed by designated managers due to the budgets of the municipalities of jurisdiction.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

38

(2) Nursery School Contract Form
Licensed Nursery School

Reference: Tokyo Licensed
Nursery School System

Municipality

Municipality

Facility Payments

Childcare Fees

Assistance(Change depending on age)

(Change depending on
income)(Change depending on
age)

Nursery
SchoolParentNursery
SchoolDirectcontract
ParentChildcare
Fees(Fixed in principle)

Copyright©JP-HOLDINGS,INC All Rights Reserved.

39

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

Nursery School

Licensed Children’s School(Kindergarten/Nursery School
Cooperation type)Act on Child Education and Childcare Support (Defines the framework of cross-ministerial and unified payments in the Cabinet
Office)Underlying
Laws/Regulations

Section 3 of the School Education Act(Under the jurisdiction of the Ministry of
Education, Culture, Sports, Science andTechnology)

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

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

SchoolChild welfare facility

School and child welfare facility

Target Children*

1st certification

2nd and 3rd certification

1st, 2nd and 3rd certification

Kindergarten Education Guidelines

Nursery School Childcare Guidelines

Licensed Children’s School Education
and Childcare Guidelines

Basis of Education andChildcare Content

Daily Education andChildcare Time

4 hours as standard

8 hours as standard

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

Number of Education
and Childcare Days ina Year39 weeks or more

No stipulations

Depending on the regional conditions*1st certification: Children of 3 years old or older requiring education / 2nd certification: Children of 3 years old or older requiring childcare / 3rd certification:
Children under 3 years old requiring childcare

Copyright©JP-HOLDINGS,INC All Rights Reserved.

40

(4) Overview of School Clubs and Children’s Houses
School Clubs (Broad Definition)
After-school Children’s Health
Promotion Business

After-school Children’s Classroom
Promotion BusinessChildren’s Houses

Underlying
Laws/Regulations

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

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

Article 40 of the Child Welfare Act(Under the jurisdiction of the Ministryof Health, Labour and Welfare)

Nature of the Facility

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

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

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

Target Children

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

All children in the community (regardless ofwhether infants, children or students andregardless of whether their parents work or not)All children under the age of 18

Basis of Education andChildcare Content

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

After-school Children’s Classroom Promotion
Business Action Guidelines

Children’s House Guidelines

Daily Education andChildcare Time

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

Number of Education
and Childcare Days in aYear

250 days or more as a general rule
(However, this can be 200 days or more
depending on the form of the user’s needs)

4 hours or less on average(However, this is 8 hours or less as a general ruleon Saturdays, school holidays and long-term
holiday periods)

Set in accordance with the situationin the community (e.g. the age of thetarget children and convenience ofparents)

Less than 250 days as a general rule

Copyright©JP-HOLDINGS,INC All Rights Reserved.

41

(5) Consolidated Results (Highlights)
Net sales(million yen)
Operating income(million yen)
Ordinary income(million yen)
Net income attributableto owners of parent(million yen)
Net income per share(Yen)

FY3/07

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

5,488

6,062

7,272

8,194

9,166

11,867

13,78915,747

17,86820,552

202

392

521

738

839

1,114

1,336

1,288

1,431

1,834

316

500

707

800

866

1,150

1,375

1,514

1,636

1,884

139

266

440

444

500

653

750

872

1,003

1,195

1.86

3.60

5.98

6.06

6.67

7.83

8.99

10.45

12.03

14.32

* Net income per share is the amount that reflects the stock split.

Net
sales
売上高（左軸）(left axis)

Ordinary
income
経常利益（右軸）(right axis)

Operating income（right axis）(Million yen)

25,000

2000
1800
1600
1400
1200
1000
800
600
400
200
0

20,00015,00010,0005,000
0FY3/07

2007年…

FY3/08

2008年…

FY3/092009年…

FY3/102010年…

FY3/11

2011年…

FY3/12

2012年…

FY3/132013年…

FY3/142014年…

Copyright©JP-HOLDINGS,INC All Rights Reserved.

FY3/152015年…

FY3/162016年…

42

(6) Consolidated Results(Balance Sheet / Statement of Cash Flows)
FY3/07

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Total assets(million yen)

3,136

3,823

4,275

5,763

9,432

9,808

10,926

13,626

19,11521,519Net assets(million yen)

1,054

1,242

1,546

1,903

3,559

3,977

4,485

5,102

5,774

6,570

Shareholders’equity ratio
(%)

33.5

32.4

36.1

32.9

37.7

40.5

41.0

37.4

30.2

30.5

FY3/07

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Cash flows fromoperating activities(million yen)

406

439

672

378

915

1,205

1,173

1,038

1,294

1,804

Cash flows frominvesting activities(million yen)

△ 426

△ 587

△ 363

Cash flows fromfinancing activities(million yen)

455

33

△ 157

412

2,473

△ 219

514

1,220

3,748

1,553

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

1,086

972

1,137

1,022

2,602

2,768

3,188

1,808

2,891

3,798

△ 906 △ 1,808△ 821 △ 1,268 △ 3,638 △ 3,959 △ 2,449

Copyright©JP-HOLDINGS,INC All Rights Reserved.

43

(7) Dividends
The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio of around
30% while maintaining the necessary internal reserves for future business development and to strengthen ourmanagement structure.
FY3/07

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Amount ofdividend per
share
(yen)

0.60

1.12

1.90

2.00

2.90

3.00

3.20

3.60

4.00

5.00

Commemor
ative
dividend:
0.50 yen

Commemor
ative
dividend:
0.50 yen

Payout ratio
(%)

32.1

43.4

38.3

35.6

34.5

33.3

34.9

31.0

31.7

33.0

The amount of dividend per share reflects the stock split.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

44

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



Our corporate message contains the idea that all
our employees always think about and put into
practice what they can and should do for thesmiles of children regardless of his/her
occupation, job title, department or experience
with our objective becoming the best childcare
operator.
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45

(9) Code of Conduct and Management Philosophy
Code of
Conduct

As a childcare
operator

Follow social
conscience

Aim for personal
growthNumber one priority:
Safety and security

Compliance

Among individuals andfriends• We will provide peace of mind
to children and protect theirsafety and lives• We will value each individual
child and respect theirpersonalities• We will listen carefully tochildren and parents• We will provide childcare
support close to users andcommunities• We will contribute to thedevelopment of communities
and the conservation of theenvironment as a member ofsociety• We will contribute to an
improvement in social welfare
for the future of children• We will comply with laws andregulations as a member ofsociety• We will respect human rights• We will never overlook abuse• We will protect personal
information• We will not use company
assets for private use• We will maintain absolutely
no relations with anti-social
forces; we will keep healthy
and appropriate relationships
with politicians and public
officials• We will strive to actively
disclose information• We will act while thinking
about what is best
• We will act independently
with a sense of responsibility• We will continue to learn as
experts• We will never forget to smileand have a sense of fun• We will have our own
opinions while listening
closely to those of others

Management
Philosophy
Number one
priority:
Safety andsecurityChildcarethat remains
memorable
forever tousers

Provision ofhigh-quality
servicesneeded byusers

Creation ofwork-friendly
environments

Copyright©JP-HOLDINGS,INC All Rights Reserved.

46

(10) NADESHIKO 2016
Following on from 2015, we were again selected as a 2016 NADESHIKO
Brand. We will continue to strive toward the proactive activity promotion
and management position appointment of women in the future.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

47

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: Mika Matsumiya

17F Chikusa New Tower Bldg., 3-15-31 Aoi,
Higashi-ku, Nagoya-shi Aichi

General Manager of Administration Div.

TEL: 052-933-5419
FAX: 052-933-5163

JP-HOLDINGS, INC.

E-mail: mika_matsumiya@jp-holdings.co.jp

Copyright©JP-HOLDINGS,INC All Rights Reserved.