Summary of Business Results for the Third Quarter Ended December 31, 2023
[Japan GAAP] (Consolidated)
February 13, 2024
Listed on the TSE Prime

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: February 13, 2024
Preparation of supplementary financial document: None
Results briefing: None

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

1. Consolidated business results for the nine months ended December 2023
(April 1, 2023 through December 31, 2023)(1) Consolidated results of operations(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen%
Nine months ended Dec. 2023
27,279
4.7
3,470
38.9
Nine months ended Dec. 2022
26,051
2.6
2,499
16.2
(Note) Comprehensive income
Nine months ended December 2023: 2,242 million yen (28.8%)
Nine months ended December 2022: 1,741 million yen (22.0%)
Net income
Diluted net income perper share
share
Yen
Yen
Nine months ended Dec. 2023
26.16
Nine months ended Dec. 2022
20.44-

Net income attributable toowners of parent

Ordinary income
Million yen
3,418
2,522

%
35.5
16.2

Million yen
2,227
1,777

%
25.3
26.5

(2) Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Million yen
As of Dec. 31, 2023
34,825
As of Mar. 31, 2023
35,694(Reference) Shareholders’ equity
As of December 31, 2023: 15,328 million yen
As of March 31, 2023: 13,584 million yen

Million yen
15,32813,584

%
44.0
38.1

2. Dividends
End of 1Q
Yen
Year ended Mar. 2023

Annual dividend
End of 2Q
End of 3Q
Yen
Yen
0.00

-

Year ending Mar. 2024
0.00
Year ending Mar. 2024 (forecast)(Notes) Revisions to dividend forecast for the current quarter: Yes
Breakdown of year-end dividend for the fiscal year ended March 2023
Ordinary dividend: 5.00 yen, Commemorative dividend: 1.00 yen--

Year-end

Total
Yen

Yen

6.00

6.00

8.00

8.00

3．Forecast of consolidated business results for the fiscal year ending March 2024
(April 1, 2023 through March 31, 2024)(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen
Year ending Mar. 2024
37,581
5.8
4,363(Notes) Revisions to business forecast for the current quarter: Yes%
19.0

Ordinary income
Million yen
4,314

%
15.2

Net income attributable toowners of parent

Million yen
2,723

%

Net income
per share
Yen

0.9

31.96

*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 December 31, 2023
87,849,400 shares
As of March 31, 2023
87,849,400 shares②Treasury stock at the end of period
As of December 31, 2023
2,662,221 shares
As of March 31, 2023
2,697,857 shares③Average number of stock during period (quarterly cumulative period)
Nine months ended December 2023
85,172,925 shares
Nine months ended December 2022
86,974,968 shares*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or
auditing firms.
*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. Actual results may differ significantly
from the forecasts due to various factors. For information regarding the assumptions that form the basis for the business results
forecasts and notes about using 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 and Major Notes………………………………………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)…………………91

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
During the nine months of the current fiscal year, the Japanese economy continued to show a gradual recovery as a whole, with
the normalization of economic activities after the downgrading of the legal status of COVID-19 to "Class 5". However, the outlook
remains uncertain due to the prolonged situation in Ukraine, and the effects of rising prices, fluctuations in foreign exchange andfinancial capital markets, and other factors amidst the ongoing global monetary tightening.
Meanwhile, in the environment surrounding the child-raising support business, the ”Children and Families Agency” wasestablished in April 2023 as a countermeasure against the accelerating decline in the birthrate, and in June 2023 the government
issued the "Children's Future Strategy," which outlines the specific content of measures against the declining birthrate withdifferent dimensions. As a national policy, measures against the declining birthrate have been further strengthened. The specificmeasures of the "Children's Future Strategy" include improving the placement standards for childcare workers, for the first time in
75 years, to establish a system where parents can leave their children in facilities with peace of mind. This involves securingchildcare personnel through further enhancements in their treatment. Additionally, a "Universal Childcare System" is planned to beestablished, enabling all families with children to utilize childcare centers regardless of employment requirements. These efforts
are part of the "various measures to address the decline in birth rates”. As such, initiatives aimed at creating a more supportive
environment for childcare are being accelerated. The social role of childcare support initiatives is believed to be increasingly
crucial.
As described above, while the improvement of childcare environments by the government is being expanded, in areas where thebirthrate decline is accelerating, competition among childcare facilities is intensifying to acquire the number of children. Structuralreforms for sustained growth and further earnings expansion, and the development and early profitability of new businesses will be
required. In view of changes in the external environment, the medium-term management plan (from FY3/24 to FY3/26) has beenreviewed in line with the announcement of business forecasts for the fiscal year ending March 2024. We set our three priority
targets: “Achieve growth and establish a competitive advantage,” “Reform our profit structure,” and “Reform our managementbase”. With this, we will create new services and value, establish a competitive advantage and solve social problems through ourbusiness by proactively developing new businesses for growth, developing infrastructure utilizing M&As and systemization, andbuilding solid business foundations with structural reforms and business reforms. Through these efforts, we aim for sustainablegrowth while realizing the management philosophy of our group: “Through child care support, we will contribute to creating
smiles for everyone.” To effectively adapt to the changing social environment, we are deploying the following strategies.
Firstly, we aim to "achieve growth and establish a competitive advantage" by developing new businesses with a focus on
medium to long-term growth. Simultaneously, we are proactively considering M&As to not only expand existing operations but
also to venture into new business domains. Furthermore, in order to enhance our competitive advantage, we plan to develop andexpand new learning programs. For instance, we will offer childcare and after-school programs that incorporate STEAM
education, as well as after-school activities such as English, gymnastics, and music classes. Additionally, the strategy encompasses
various initiatives, including the operation of a "bilingual nursery school" with English native teachers as a new facility, test
introduction of “Montessori-method education nursery school”, establishing a comprehensive childcare support system for infants,
toddlers, and school-age children, and adopting a dominant strategy through collaboration between nursery schools, after-school
clubs, and children’s clubs, aiming to double the current number of after-school clubs and children’s clubs to 200 facilities throughproactive expansion efforts. Additionally, we are working on enhancing collaboration with local communities to establish the "My
Nursery School System" to support those who are planning to have and raise children, as part of our efforts to improve theparenting environment. As such, we are actively implementing a differentiation strategy as part of our commitment to create"facilities that would continue to be selected by customers" in various regions.
As part of our new business initiatives, within the childcare support platform "codomel," we are expanding service offerings andproducts. We are strengthening our capabilities for CtoC, BtoC, and BtoB interactions to the problem of preparing dinner forparents. Additionally, we have established the real estate company "Kosodate Support Realty Inc." within the group. This entity
focuses on real estate intermediary services, property leasing, property management, and real estate consulting related to childcare
support operations. These efforts are aimed at achieving early revenue generation.
As a new business development, on November 27, 2023, the Company entered into a share transfer agreement to acquire all
shares of ONE’S WILL CO.LTD. which has expertise in the placement and dispatch of personnel and the introduction of foreign
specified skilled workers. In response to the domestic labor shortage and in response to various measures by the government tocounter the declining birthrate on a different dimension, we will promote the recruitment and temporary staffing services as a new
business that leverages the strengths of both companies, such as acquiring specialist personnel, including childcare workers, andutilizing qualified personnel from overseas.
Furthermore, on October 27, 2023, we concluded a business alliance with Duskin Co., Ltd. The purpose of the alliance is tomaximize the corporate value of both companies, create new services for solving social problems and the problems of customers
and guardians, and realize an affluent lifestyle through effective use of the management resources and know-how of bothcompanies and mutual cooperation. In promoting these activities, we will launch a cooperative review committee as soon as
possible and develop new businesses.
As part of our Group's growth strategy, we will actively pursue M&A to create new businesses, achieve early profitability, andexpand existing businesses. In this way, we will strive for sustainable growth while realizing our Group management philosophy of"Through child care support, we will contribute to creating smiles for everyone."2

Regarding "reform our profit structure," we are reassessing our business structure. We are optimizing staffing, enhancing
financial management, and achieving operational efficiency through the rectification of inefficient operations and processes
using data utilization. We are also committed to further improving our operations through business process reforms and system
implementations.
As for the “reform our management base,” the key to our business is people. Therefore, we will enhance our personnel
education and training structure. At the same time, we will retain and develop outstanding human resources and improve
employee engagement to lead to a change in awareness. Moreover, we are working to revitalize our organization by enhancing
our human resources strategy (expanding training and renewing our corporate culture), strengthening Group governance, andestablishing an on-site work and management system.
As for the new facility openings, the Group has opened a total of 10 facilities during the third quarter of the fiscal year ending
March 2024 according to the plan, including 1 nursery school (1 in Tokyo) and 9 school clubs and children's houses (8 in Tokyo,
1 in Saitama).
(Nursery School)
Shinagawa Municipal Yashio Nishi Nursery School(Apr. 1, 2023)(School Club/Children's House)
Heisei Elementary School After School Kids’ Club
Ryusen Kids’ Club
(Apr. 1, 2023)
Chofu Municipal Chowa Elementary School Club No.2
Minamikko Hiroba
Minato-ku Houka-go→Club Konan
Takaban Elementary School Lan Lan Hiroba
Yonsho Aozora School Club
Asc Asakusabashi Kids’ Club
Matsubara Children's Club No.2

(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Jun. 1, 2023)(Jul. 21, 2023)(Bilingual Nursery School)
The Company changed licensed nursery schools and Tokyo Licensed Nursery Schools to bilingual nursery schools, whichis staffed by native English-speaking teachers.
Asc Bilingual Nursery School Eifuku (formerly Asc Eifuku Nursery School)(Apr. 1, 2023)
Asc Bilingual Nursery School Kameido (formerly Asc Kameido Nursery School)(Apr. 1, 2023)
GENKIDS Bilingual Nursery School Shinkoyasu (formerly GENKIDS Shinkoyasu Nursery School)(Apr. 1, 2023)
Asc Bilingual Nursery School Asakusabashi (formerly Asc Asakusabashi Nursery School)(Jun. 1, 2023)
Asc Bilingual Nursery School Meidai-mae (formerly Asc Meidai-mae Nursery School)(Jun. 1, 2023)*1: As of March 31, 2023, the Company closed Tokyo Licensed Nursery School named Asc Fudo-mae Nursery School. In addition, due to the
expiration of the contract, the Company withdrew from school clubs named Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 1,
Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 2, Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 3, Wakuwaku Kirigaokasato Hiroba/Kirigaoka-satokko Club No. 1, Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 2, Wakuwaku Kirigaoka-sato
Hiroba/Kirigaoka-satokko Club No. 3, Wakuwaku Fukuro Hiroba/Akakita Hibari Club No.3, Wakuwaku Yoniwa Hiroba/Yoniwa Elementary
School Icho. Club No. 1, Wakuwaku Yoniwa Hiroba/Yoniwa Elementary School Icho. Club No. 2, Mitaka Municipal Minamiura School Club
Annex A, Minato-ku Houka-go→Club Honmura, Bunkyo-ku Meidai Temporary Childcare Room as of March 31, 2023.

As a result, the Group came to have 209 nursery schools, 86 school clubs, 11 children's houses, making a total of 306
childcare facilities as of December 31, 2023.
As a result, the Group’s consolidated net sales were 27,279 million yen (up 4.7% year on year), operating income was 3,470
million yen (up 38.9% year on year), ordinary income was 3,418 million yen (up 35.5% year on year), and net income
attributable to owners of parent was 2,227 million yen (up 25.3% year on year).
The major factors are as follows:
Net sales increased 4.7% year on year due to an increase in the number of children accepted during the period, the opening of
new facilities, and new contracts. This was attributable to a variety of initiatives aimed at creating "facilities that would continue
to be selected by customers," including the introduction of a bilingual nursery school as a new business format, a Montessorimethod nursery school, and the expansion of preschooler learning programs.

3

Operating income rose 38.9% year on year, despite an increase in cost of sales due to higher electricity charges and soaring
prices for various purchased products, as a result of the above-mentioned measures, as well as efforts to maximize subsidies at
each facility, improve operating efficiency, and revise the ordering system.
Ordinary income and net income attributable to owners of parent also increased by 35.5% and 25.3% year on year,
respectively, as a result of growth in net sales, improved sales at existing facilities through efficient operations.

(2) Financial Position
As for the financial position at the end of the third quarter of the current fiscal year, the total assets amounted to 34,825
million yen (down 868 million yen from the end of the previous fiscal year).
Current assets totaled 23,415 million yen (down 197 million yen), mainly reflecting an increase of 567 million yen in cash anddeposits, while there were decreases of 640 million yen in accounts receivable, and 129 million yen in others.
Fixed assets totaled 11,410 million yen (down 671 million yen). This was mainly due to decreases of 306 million yen inbuildings and structures, 174 million yen in deferred tax assets and 169 million yen in long-term loans receivable.
Total liabilities amounted to 19,497 million yen (down 2,612 million yen).
Current liabilities were 8,157 million yen (down 136 million yen), mainly due to a 334 million yen increase in other, offset by
a 434 million yen decrease in accrued bonuses.
Fixed liabilities totaled 11,339 million yen (down 2,476 million yen). This was mainly due to a decrease of 2,533 million yen
in long-term loans payable.
Total net assets at the end of the third quarter of the current fiscal year totaled 15,328 million yen (up 1,744 million yen). Thiswas mainly due to an increase of 1,717 million yen in retained earnings.

(3) Consolidated Earnings Forecasts
For the full-year business forecasts announced on May 11, 2023, the Company revised the forecasts upward based on the
results for the third quarter of the fiscal year ending March 2024, as follows. For details, please refer to the "Notice of Revisions
to Full-year Business Forecasts and Dividend Forecast (Upward Revisions)" dated February 13, 2024.
In our full-year forecasts for the fiscal year ending March 31, 2024, we forecast a 3.3% increase in net sales compared to our
initial forecasts due to an increase in the number of children resulting from the promotion of creating "facilities that would
continue to be selected by customers" through the consignment and establishment of new facilities, the introduction of bilingual
nursery schools and Montessori-method nursery schools, and the expansion of early childhood learning programs.
Operating income and ordinary income are expected to increase by 14.2% and 12.3%, respectively, compared with the initial
forecasts, due to sales growth resulting from the opening of new facilities and the contracting new facilities and an increase in
the number of children accepted, as well as a review of the ordering system in response to soaring raw material prices andvarious measures taken to maximize subsidies.
Net income attributable to owners of parent is expected to increase by 9.1% from the initial forecast due to the establishmentof the above-mentioned efficient management system and the maximization of subsidy acquiring.
These efforts are implemented to improve profitability and expand the number of children we accept not only for the current
fiscal year but also for the next fiscal year. These initiatives have been successful in creating “facilities that would continue to be
selected by customers” in each region. We believe that they will have a significant impact on the expansion of our business inthe next fiscal year and beyond.
Furthermore, we will develop and operate new businesses in conjunction with our existing businesses, such as a food businessto meet the needs of parents, a service to provide necessary equipment for nursery schools, the opening of bilingual nurseryschools and Montessori-method nursery schools specializing in English with new educational programs, and the development ofa personnel placement and dispatch business to address the labor shortage in Japan and the declining birthrate in the future.
We have also revised our year-end dividend forecast for the fiscal year ending March 31, 2024 from 6 yen to 8 yen per share,
an increase of 2 yen per share.
Actual results may differ from forecasts due to changes in business conditions and other factors in the future. If there are anychanges, the Company will disclose them properly.

42. [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Thousand yen)Previous Fiscal Year
(March 31, 2023)

Current Third Quarter(December 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade

19,330,865
60,19819,898,602
79,788Inventories
Accounts receivable - other55,476
3,263,596

40,432
2,622,965

904,246-1,291

774,328-366

23,613,092

23,415,751

12,024,967

12,052,008

Accumulated depreciation and impairment-7,640,405-7,973,782

Buildings and structures, net

4,384,561

4,078,225

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

Machinery, equipment and vehicles

203

203

Accumulated depreciation

-150

-172

Machinery, equipment and vehicles, net

5331

1,340,178

1,465,393

Accumulated depreciation and impairment-869,662-973,512

Tools, furniture and fixtures, net

Tools, furniture and fixtures

470,516

491,881Land
Construction in progress

129,529330

129,529-

Total tangible fixed assets

4,984,990

4,699,667

106,350

83,561Intangible assets
Goodwill
Others

39,68932,719Total intangible assets

146,040

116,280

Investment securities
Long-term loans receivable

406,875
2,804,871

456,825
2,635,295

Guarantee deposits
Deferred tax assets

1,819,824
1,458,611

1,822,904
1,284,598

OthersAllowance for doubtful accounts

465,177-4,727401,221-6,603

Total investments and other assets

6,950,632

6,594,242

Investments and other assets

Total fixed assets
Total assets

5

12,081,664

11,410,190

35,694,756

34,825,942

(Thousand yen)Previous Fiscal Year
(March 31, 2023)

Current Third Quarter(December 31, 2023)

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

186,091
3,654,742

149,178
3,584,113

Accounts payable – other
Income taxes payable

1,681,700
433,452

1,745,701
493,054

Accrued consumption taxes
Reserve for bonuses

92,647866,100

43,599431,280

Asset retirement obligation
Others

3,087
1,376,561

1,710,930

Total current liabilities

8,294,383

8,157,856

12,226,111
970,699

9,692,193
1,026,121

Fixed liabilities
Long-term debt
Retirement benefit liability
Asset retirement obligation

619,549

621,641

13,816,359

11,339,955

22,110,742

19,497,812

CapitalCapital surplus

1,603,955
1,455,989

1,603,955
1,457,965

Retained earnings
Treasury stock

11,422,289-784,199

13,139,301-773,840

Total shareholders’ equity

13,698,034

15,427,382-111,798-98,714

1,143-3,365569-1,106

Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for- salesecurities
Deferred gains or losses on ledges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6-114,020-99,251

13,584,013

15,328,130

35,694,756

34,825,942

(2) [Quarterly Consolidated Statements of Income and Statements of Comprehensive Income]Quarterly Consolidated Statement of Income Current[Third Quarter of FY3/24]

Net sales
Cost of sales

Previous Third Quarter(April 1, 2022
- December 31, 2022)
26,051,906
21,488,226(Thousand yen)
Current Third Quarter(April 1, 2023
- December 31, 2023)
27,279,638
21,903,885

Gross profit

4,563,680

5,375,752

Selling, general and administrative expenses

2,064,225

1,904,854

Operating income

2,499,455

3,470,898

59,27855,731Others25,011

18,414

Total non-operating income

84,29074,146

52,112-52,30870,000Non-operating income
Interest income

Non-operating expenses
Interest expenses
Arrangement fee
Others

9,234

3,880

Total non-operating expenses

61,347

126,189

Ordinary income

2,522,398

3,418,855

Extraordinary income
Gain on sales of fixed assets

239,330-Extraordinary income

239,330

-

1,021

121

Extraordinary loss
Loss on retirement of fixed assets

1,021

121

Income before income taxes and others

Total extraordinary loss

2,760,707

3,418,733

Corporate, inhabitant and enterprise taxes
Income taxes-deferred

895,673
87,141

1,023,499
167,312

Total income tax

982,814

1,190,811

Net income

1,777,892

2,227,922

Net income attributable to owners of parent

1,777,892

2,227,922

7

[Quarterly Consolidated Statement of Comprehensive Income][Third Quarter of FY3/24]
Previous Third Quarter(April 1, 2022
- December 31, 2022)
1,777,892(Thousand yen)
Current Third Quarter(April 1, 2023
- December 31, 2023)
2,227,922

Valuation difference on available-for- sale securities
Deferred gains or losses on ledges-56,321
6,821

13,083-573

Remeasurements of defined benefit plans

12,8502,258

Net income
Total accumulated other comprehensive income

Total other comprehensive income
Comprehensive income
BreakdownComprehensive income attributable to owners ofparent8-36,648

14,768

1,741,243

2,242,690

1,741,243

2,242,690

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)Third quarter of FY3/24 (April 1, 2023 – December 31, 2023)
None applicable.
(Notes if there is a significant change in the amount of shareholders' equity)
Third quarter of FY3/24 (April 1, 2023 – December 31, 2023)
None applicable.

9