JP-HOLDINGS, INC.
Financial Results for the 2Q of Fiscal Year ending March 2019

TSE 1 （2749）
https://www.jp-holdings.co.jp/

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

Koichiro Furukawa, President and Representative Director

No. of Employees

Employees: 3,468 / Part-time workers: 2,353 *As of Sep.-end 2018

Japan Nursery Service Inc. (Capital stock: 99 million yen / Wholly owned subsidiary)
J Kitchen Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
J Cast Inc. (Capital stock: 10.4 million yen / Wholly owned subsidiary)
Consolidated
Subsidiaries

J Planning Sale Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
Japan Nursery Institute for General Research Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
Amenity Life Inc. (Capital stock: 70 million yen / Wholly owned subsidiary)
COHAS VIETNAM CO., LTD (Capital stock: 6,834,million VND / Wholly owned subsidiary）
Nursery Service (Japan Nursery Service, Amenity Life, and COHAS VIETNAM )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)

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2

Company Overview

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3

Corporate Philosophy
 Corporate Message
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 andemotions to express themselves in a safe environment.
We strive for continual self-improvement to be models to children. We also strive toconnect with children with passion and a sense of responsibility, and to acquire strong
ethical values and social conscience.

 Management Philosophy
1.Number one priority: Safety and security
2.Childcare that remains memorable forever to users
3.Provision of high-quality services needed by users
4.Creation of work-friendly environments
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Business Summary Operation of Childrearing Facilities (Public and Private)
Public Facilities = Subsidy from Gov’t and Municipalities
Licensed
Nursery School

Private Facilities= Subsidy from Gov’t
and Municipalities No

YesTokyo Licensed
Nursery School

School Club,Children's House

Municipality

Municipality

Private School Club

ParentMunicipality

ParentLicensed schools(Public-private management)

Licensed schools(Private management)

Revenue from User

Revenue from User

(Burden of Actual Cost)(Burden of Actual Cost)

Structureof SalesSubsidy（DesignatedManagement Fee）
※depends on municipality

Subsidy（Official Price）+（Addition by
Municipality）※depends on municipality

JP

Contract

ParentUsage FeeJP

ParentUsage FeeContract

Contract
Form

JP

JP

Revenue from User
Revenue from User
(Childcare Charge +Burden of Actual Cost)

Subsidy（Tokyo Met. Gov’t）+（Addition by
Municipality）(Burden of Actual Cost)

Subsidy（ DesignatedManagement Fee）
or
（Trustee Fee）

Revenue from
User
(Childcare Charge +Burden of Actual
Cost）※depends on municipality※depends on municipality

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5

Image of JP Holdings’ Group Structure
J CastJ Kitchen

Teacher

Nurseryschool teacher

EnglishGymnastics
Gymnastics
Eurhythmics
EnglishNutritionist
Lunch

Eurhythmics
Childcaregoods

J Planning Sale

Overseas
VietnamChildcare

Japan Nursery
Service

We will take full advantage
of group synergies –from facilities and equipment
to the quality improvementof staff

Researching, Training and Consulting Service
Training

Japan Nursery Institute forGeneral ResearchChildcare

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6

2Q FY3/19 Results

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2Q FY3/19 Financial Highlights (1) Net sales increased YoY because of the establishment of new facilities as well as sales
growth of existing facilities.
Net sales 14,278 million yen（YoY+12.0%）

 Operating income decreased YoY because of increase of recruitment cost, allocated cost of nurseryschool teachers which was ahead of entrance of children. However, since Jun. 2018, the numberof entrance of children has been gradually increasing. As a result, operating income increased
YoY in the 2Q. Ordinary income and net income attributable to owners of parent decreased YoY,
as a decrease in operating income had large impact, although non-operating revenues grew thanks toan increase in subsidies for corporate dormitory users.

Operating income 168 million yen （YoY-62.6%）
Ordinary income

399 million yen （YoY-32.7%）

Net income attributable to owners of parent 235 million yen （YoY-32.1%）
 Consolidated earnings forecast
Will implement organizational and business structure reforms aimed at improving management
efficiency, and provide better quality child-raising services and contribute broadly to society

30,001 million yen（YoY+12.0%）

Operating income 1,847 million yen（YoY+41.8%）

Ordinary income（YoY+38.8%）

Net sales

2,196 million yen

Net income attributable to owners of parent 980 million yen （YoY+7.7%）
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2Q FY3/19 Financial Highlights (2)2Q FY3/18
Net sales (million yen)

2Q FY3/19

Year on Year
Comparison(%)

Change12,748

14,278

1,529

12.0

Operating income (million yen)

449

168

- 281

- 62.6

Ordinary income (million yen)

593

399

- 193

- 32.7

Net income attributable to owners of parent(million yen)

347

235

- 111

- 32.1

Net income per share (yen)

4.09

2.75

- 1.34―

Net assets per share (yen)

83.08

90.01

6.93

―

Shareholders’ equity ratio (%)

30.0

32.2

―

―

*“Partial Amendment of Accounting Standard for Tax Effect Accounting” and other regulations have been applied from the first quarter of the current fiscal year,
As for numbers of cumulative previous 2Q period is retroactively rectified by this accounting standard.

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2Q FY3/19 Profit and Loss Statement
2Q FY3/18

Year on Year
Comparison

2Q FY3/19

Component
Component
AmountAmountRatio
Ratio(Million Yen)
(Million Yen)
(Million Yen)(%)(%)
AmountRate of
Change(%)

Net sales

12,748100.0

14,278

100.0

1,529

12.0

Cost of sales

10,97986.1

12,720

89.1

1,741

15.9

Gross profit

1,769

13.9

1,557

10.9

- 211

- 12.0

SG & A expenses

1,320

10.4

1,389

9.7

69

5.3

Operating income

449

3.5

168

1.2

- 281

- 62.6

Non-operating revenues

181

1.4

296

2.1

114

63.2

Non-operating expenses

38

0.3

65

0.5

27

72.1

Ordinary income

593

4.7

399

2.8

- 193

- 32.7

Net income attributable to owners of parent

347

2.7

235

1.7

- 111

- 32.1

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2Q FY3/19 Balance Sheet
FY3/18(Million Yen)
Total current assets

2Q FY3/19(Million Yen)

Amount of Change(Million Yen)

7,885

7,151

- 733

Cash and deposits

4,455

4,021

- 434

Accounts receivable - other

2,169

2,161

-8

17,873

16,894- 979

Total tangible fixed assets

10,101

9,125

- 976

Total intangible fixed assets

473

455

- 18

7,297

7,313

15

Total assets

25,75824,045- 1,713

Total Current liabilities

8,208

7,958

- 250

Current portion of long-term loans payable

2,485

2,379

- 105

Accounts payable - other

1,584

1,549

- 34

9,793

8,348

- 1,444

8,934

7,462

- 1,471

Total liabilities

18,002

16,306- 1,695

Total net assets

7,756

7,738

- 17

Total liabilities and net assets

25,75824,045- 1,713

Total fixed assets

Total Investments and other assets

Total fixed liabilities
Long-term loans payable*“Partial Amendment of Accounting Standard for Tax Effect Accounting” and other regulations have been applied from the first quarter of the current fiscal year,
As for numbers of cumulative previous 1Q period is retroactively rectified by this accounting standard.

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11

FY3/19 Forecast
FY3/18Actual

FY3/19Forecast

Year on Year
Comparison(%)

ChangeNet sales (million yen)

26,77930,001

3,222

12.0

Operating income (million yen)

1,303

1,847

544

41.8

Ordinary income (million yen)

1,582

2,196

614

38.8

910

980

69

7.7

Net income per share (yen)

10.70

11.52

0.82

7.7

Dividends (yen)

3.50

3.50

0.00

0.0

Dividend payout ratio (%)

32.7

30.4

―

Net income attributable to owners of parent (million yen)

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―

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FY3/19 New Openings
FY 3/19 New Openings
Nursery Schools ：17：4
School Clubs
Total ：21
*Nakano-Ehara Kids’ Club, Nakano Municipal Saginomiya
School Club, Nakano Municipal Yamato School Club andKita Municipal Akabanenishi 5-chome Children’s House
closed on the last day of March 2018.

Tokyo:
7 licensed nursery schools
・Koto-ku Minamisuna No.4 Nursery School・Asc Kanamecho Nursery School・Asc Toneri Nursery School・Asc Higashikasai Nursery School・Asc Fuchuhonmachi Nursery School・Asc Minamikugahara Nursery School・Asc Yakuoji Nursery School

Kanagawa:

Okinawa:
2 company-led nurseries

3 licensed nursery schools
・Asc Kugenumakita Nursery School・Asc Minowa Nursery School
・GENKIDS Shinkoyasu Nursery School・ Asc Akebonokaiho Nursery School・ Asc Noborikawa Nursery School

2 small-scale nursery schools
Shiga:
1 licensed nursery school

Tokyo:

・Asc Wani Nursery School・Asc Toyotama 1-chome Nursery School A・Asc Toyotama 1-chome Nursery School B

4 school clubs
・Kojimachi Kids’ Club・Taisho Primary School After School Club
・Chofu Municipal Chowa Primary School,
School Club・Wakuwaku Takinogawa Momiji
School Club

Osaka:
1 licensed nursery school

Chiba:

・Asc Soneminami Nursery School

1 licensed nursery school・Asc Otakanomori Nursery School

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No. of Facilities Operated by Region
No. of Facilities Operated (2Q FY3/19)：200
Nursery schools：72
School clubs：11Children’s houses：5
Private school clubs
Kindergarten (Overseas Facility) ：1
Total ：289

Kyushu・Okinawa
Licensed
nursery schools: 5
Company-led nurseries: 2

Hokkaido
Licensed nurseryschools: 3

Chubu
Licensed
nursery schools: 9
School clubs: 3
Children’s houses: 6

Kinki
Licensed nurseryschools: 8

TohokuLicensed nurseryschools: 11

Kanto
Lic. nursery schools: 136
Small-scale nursery schools: 2
Non-lic. nursery schools: 24
School clubs: 69
Children’s houses: 5
Private school clubs: 5

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Vietnam
Kindergarten:1

14

No. of Facilities Operated
FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18As at

Sep. 2018

Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)

8

10

11

14

16

14

10

10

11

12

28

43

61

71

85

102

118

136

148

160

Small-scale Nursery Schools

0

0

0

0

0

0

0

0

0

2

Tokyo Licensed Schools

24

26

26

26

26

26

26

23

21

21

Company-led Nurseries

0

0

0

0

0

0

0

0

0

2

Non-licensed Municipality Authorized

5

4

4

4

4

4

1

0

0

0

Non-licensed Othernon-licensed

0

0

0

0

0

0

4

3

3

3

Joint Establishment with
Amusement Facilities

1

0

0

0

0

0

0

0

0

0

26

37

39

40

43

46

55

63

71

72

Children's Houses

6

9

7

8

8

8

10

12

12

11

Private School Clubs

0

0

0

0

0

0

0

4

5

5

Overseas Facility

0

0

0

0

0

0

0

0

1

1

98

129

148

163

182

200

224

251

272

289

School Clubs

Total*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

Licensed Nursery Schools
認可保育園（公設民営）(Public-private management)
Licensed Nursery Schools
認可保育園（民設民営）(Private management)
Small-scale
Nursery Schools
小規模保育事業
Tokyo Licensed
東京都認証保育所
Nursery School
Company-led Nurseries
企業主導型保育事業
Non-licensed
Municipality Authorized

自治体認定保育園

Non-licensed
その他認可外保育園
Other non-licensed
Children in Nurseries
預かり児童数（保育園）

Number of Children

TREND OF NURSERIES AND CHILDREN

Number of facilities

220
200
180
160
140
120
100
80
60
40
20
0

16000
14000
12000
10000
8000
6000
4000
2000
0

FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

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FY3/17

FY3/18Sep.2018

15

Business Environment
and Our Maneuvers

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Prefecture

Current Waiting List Situation
National Waiting List Map (April 1, 2018)


The number of children on waiting lists as of Apr.
2018 is 19,895 (6,186 decrease YoY).
The problem of children on waiting lists remains
serious. This is especially so in the Tokyo
metropolitan area and prefectures where major
cities (e.g. ordinance-designated cities) are located.
(Refer to the map on the right.)

Current as of April 1 ,2018

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

(24)
(13)
(15)
(14)
( 0)
( 1)

Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2018)

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Hokkaido
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima
KagawaEhime
Kochi
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
OkinawaTotal

No. of Children
on the waiting
List
129
0
145
613
37
46
371
386
41
28
1,552
1,392
5,414
864
1
0
0
18
0
50
0
325
238
80
439
75
677
1,988
201
16
0
30
698
207
36
33
108
49
51
995
33
157
182
13
63
244
1,870

19,89517

Gov’t Efforts to Eliminate Waiting Lists(1)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）

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

Action Plan for
Seamless Nursery Service(Announced Sep 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
Improve salaries of day carers by 2%
Eliminate gap between child care providers with skills and experiences and female workers
across all industries
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*Translated by JPHD

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18

Gov’t Efforts to Eliminate Waiting Lists(2)Plan for Raising Children
in Peace of Mind
（ Announced Jun 22, 2017 ）Secured budget for c.220 thousand children in 2 years and aim to eliminate day care waiting lists
by the end of FY2020 at the latest
In addition, prepare capacity of c.320 thousand children to cope with an 80% employment rate of
women by the end of FY2022“Main contents of 6 assistant packages”“Human Resources Development Revolution ”

New Economic Policy
Package（Dec 8,2017, Cabinet decision）

ExpandedneedsFree early childhood educationofnurseries
・Free fees with all children between the ages of 3 and 5 who
attend kindergartens and nurseries
・For the children under the age of 2, households with exemption ofmunicipal residence tax will be covered with free fees
Enhancement
Start from Apr. 2019 partially, and fully realize from Apr. 2020of securing nurseryteachers
Elimination of childcare placement waiting lists
・Bring forward the implementation of “Plan for Raising Children
in Peace of Mind” and offer 320 thousands child care places by the end of 2020
・Further wage increase by 1 %(equivalent to 3,000 ¥/m ) will be made from Apr. 2019

Realization and expansion ofhuman resources development revolution
Basic Policy on Economic
and Fiscal Management
and Reform 2018
（Jun. 15,2018, Cabinet decision ）Full implementation isadvanced half a year
according to consumption
tax increase・Instead of Implementation on Apr. 2019 and Apr. 2020 step by step,
aim to implement full free fees measures from Oct. 2019・In addition to free fees measures for kindergartens, nurseries, centers for early childfood
education and care indicated in “New Economic Policy Package”, custody childcare
in kindergartens and unlicensed childcare institutions are included as target of free fees
if necessity of childcare is recognized.

Source: Ministry of Health, Labour and Welfare’s Plan for Raising Children in Peace of Mind
Cabinet Office, New Economic Policy Package
Cabinet Office, Basic Policy on Economic and Fiscal Management and Reform 2018
*Translated by JPHD

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19

Action plan of Tokyo Metropolitan Gov’t for eliminating child day care waiting lists


Additional plan for eliminating child day care waiting lists
Announced by Bureau of Social Welfare and Public Health and Bureau of Industrial and Labor Affairs on Sept. 15th 2017

First Pillar: Promote setting up of nurseries etc.
1. Expand subsidy on rent：Extend the support period of rent subsidy beyond 6 years after opening
2. Support companies which tackle enterprise driven nurseries：Assist on expenses for fixtures necessary for
opening nurseries and those out of scope for national subsidy【Max. amount：3 million yen 】
3. Support to secure and expand regional frame of enterprise driven nurseries： Add regional frame of enterprisedriven nurseries for career-up subsidy on nurseries, school teachers etc. and assist salary increase of workers ofenterprise driven nurseries.

4. Fulfill subsidy on demand of municipalities：In case of setting up nurseries by utilizing rental facilities, assist
expense to equip soundproof walls etc. (Unique initiative of Tokyo Metropolitan Gov’t)【Max. amount : 6.444 million yen Subsidiary rate:1/2】

Second Pillar: Secure Personnel
5. Promote ICT in nurseries etc. to reduce burden of workers in childrearing：Initiate assistance on introducing
nursery operation support system taking into account termination of national subsidy(Unique initiative of Tokyo Metropolitan Gov’t) 【Max. amount：2 million yen】
6. Expand enterprises to lend to students to be nursery school teachers etc. to secure nursery school teachers：
Expand reserve fund for re-employment, expand loan amount to hire more than 2 assistant workers in nursery, and assist
on usage fee of enterprise to look after children of nursery school teachers

Third Pillar: Fulfill assistance on users
7. Further enhance countermeasures for safety of children in nurseries etc.：Assist introducing equipment such as
remote monitoring and baby sensor. 【Max. amount：1 million yen】
Resource：Press Release dated September 15, 2017 by Bureau of Social Welfare and Public Health and Bureau of Industrial
and Labor Affairs, Tokyo Metropolitan Government *Translated by JPHD
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20

Current Nursery School Teacher Shortage Situation(2)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.
6.61

7

Nationwide

Tokyo

6
5
4

3.40

3
2
1
0

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

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21

Trend of improvement for nursery school teachers treatment by Gov’t


On Dec 22 2016, Cabinet decided Gov’t budget plan for FY2017



Besides a 2% (c. 6,000 yen/month) increase in salary for all personnel , the plan adds 5,000 yen
for leaders with expertise and 40,000 yen/month for senior personnel＋c.10％＋max40,000yen

Trend of Improvement (VS FY2012)

c.32,000yen/m＋max40,000yen/m

16%※amount of monthly salary improvement in each year is planned improvement in budget
14%

Further improvement focusing
on skill and experience

12%

＋c.8％
＋約8％

10%

・leaders with expertise

2.0%+5,000yen/m

3.0%

・Vice-chiefs
・Professional leadersc.26,000yen/m
月額約26,000円

＋約7％
＋c.7％
月額約21,000円
c.21,000yen/m

8%

＋c.5％
＋約5％

3.0%

c.15,000yen/m
月額約15,000円

6%c.9,000yen/m
月額約9,000円（approx. 3 years over）（approx. 7years over）

3.0%

＋c.3％
＋約3％
4%

+

+40,000yen/m
2.0%

2.0%

1.9%

1.9%

1.3%

1.3%

2.85%
2.0%
2%
2.85%

2.0%

1.9%

0%

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Source：Ministry of Health, Labour and Welfare‘s“Countermeasures on improvement for
nursery school teachers treatment”*Translated by JPHD

22

Treatment Improvement by MunicipalitiesTokyo Metropolitan Government
Improve wages by an average 21,000 yen or equivalent monthly for nursery school teachers
from FY2017【Career-up assistance for nursery school teachers etc. 】¥24.4bn （Budget plan FY2017）¥28.3bn （Budget plan FY2018）



Chiba Prefecture
Add 20,000 yen monthly for nursery school teachers as wage assistance from FY2017（1/2 of improvement assisted by municipalities (In case of designated cities: 1/4))【Treatment improvement for nursery school teachers】¥550mn （Supplementary budget plan FY2017）¥1260mn （Budget plan FY2018）
Source：Bureau of Finance, Tokyo Metropolitan Government “Summary of FY2017 Budget Plan of Tokyo” “Summary of FY2018 Budget Plan of Tokyo”
Chiba Prefectural Government “FY2017 Supplementary Budget Plan as of June 2017 Documents on Main Policies”“Summary of FY2018 Budget Plan of Chiba”*Summarized and translated by JPHD

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23

Our Plan to Secure Nursery School Teachers (1) Utilize national and municipal subsidy and continue to improve wages.
 From Nov 2017, additional measures were introduced ※Provided retroactively from Apr. 2017(1)Implemented salary increase by regions(Max 480 thousand ¥/y)(2)Newly invented salary by roles(Max 480 thousand ¥/y)(3)Salary increase for directors and chiefs of nurseries(300 thousand ¥/y)
 In FY03/2018, the company paid an annual salary of 3.74 M¥ (average age:32.2) versus
the national average of 3.42 M¥ (average age:35.8)
AVERAGE ANNUAL SALARY OF NURSERY SCHOOL TEACHERS(10,000 Yen)

374.3

380
370

National average
全国平均

360

Our average
弊社平均

354.1

358.6

350

342.1

340
330

328.4
322.5

332.4
324.9

324.2

323.9

323.3

326.8

316.7

320

309.8

310

300.9

314.6

20
09年
2009

2 2010
010年

300
290

331.4

315.0
310.8

287.1

280
22008
008年

2 2011011年

2 2012
012年

22013
013年

22014
014年

22015
015年

22016
016年

20
17年
2017

※ As for national average, JPHD made numbers based on Ministry of Health, Labour and Welfare”Basic Survey on Wage Structure”「 Contractual cash earnings as of each June 」×12＋「 Annual special cash earnings of each previous year 」※ JPHD’s average annual salary is based on full year base.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

24

base
of Fi
Our
Plan
to Secure Nursery School Teachers(2)Enhancerecruitment

Acquirequalificationof childcare•••

Hold seminars and bus tours to visit nurseries according to career level around Japan
Provide employment support money
Arouse interest for potential nursery school teachers by recruiting short time or latetime workers who have segmented needs•

Started a benefit scholarship system from FY3/16. This supports those aspiring to benursery school teachers from their student days and leads to their desire to join ourcompany.
Started training course recruitment for those who are unqualified but who are looking
to pass the national test at our company from FY3/16.
Expanded recruitment of kindergarten teachers who are willing to become qualified
nursery staffs with sponsored support.

••

Mitigateburden•••Reduce the daily burdens on day carers by employing administration staff and janitors
Reduce burden of office works through ICT
Allocate part time workers specifying to late time of a day and reduce burden of
regular employees

Copyright©JP-HOLDINGS,INC All Rights Reserved.

25

Recruitment of Nursery School Teachers
FY3/19FY3/16

FY3/17

FY3/18

178

197

247

276

219

241

327

224

* After joining JPHD non qualified graduates
are expected and assisted to acquirenursery school teacher qualification.
Started this recruitment style from FY2016
82

－

23

32

46

－

New Graduates

Nursery School
Teacher
Mid career
employment
Non qualified

New Graduates

Joined on
Apr.1

Joined during
the period(as of Sep. end)－

* Includes seconded employees to associatedcompanies.

Trend of Employee Numbers in Childrearing Business(*Include employees of school clubs stuffs, nutritionists, etc. other than nursery school teachers)

6000
社員
Employees

アルバイトPart-time workers

5000

4000

3000

2000

1000

0

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Copyright©JP-HOLDINGS,INC All Rights Reserved.

FY3/17

FY3/1826

JP Holdings’ Strengths

Copyright©JP-HOLDINGS,INC All Rights Reserved.

27

JP Holdings’ Strengths (1)SafetyManagement

•
•
•
•
•
•
•

Creation of a specialized department focused on safety management.
Structure to share accident cases
Security control by auto-lock and emergency call equipment
Safe facilities protected by cushioned floor, doors with finger jam
prevention
AED deployment in all facilities
Emergency lifesaving training for all staff members
Development of various manuals(e.g. how to deal with disasters and abuse)

Nutrition • Hand made lunch with event and local foods• Cooking in nursery
Education • Dietary education activity support by food and agriculture
guidance teams

UniqueProgram•Gymnastics, English and eurhythmics courses

Development
Support•Facility patrol support by development support teams

Copyright©JP-HOLDINGS,INC All Rights Reserved.

28

JP Holdings’ Strengths (2)
Human
Resources
Development•••

Training courses over 100 annually
Oversea training in advanced countries in nursery education such as Germany and
New ZealandIntroduce E-learning to unify and improve quality of childrearing

Working
Environment

Cost
Management•••

Reduce burden of office works through ICTMulti-layered follow system by tutor, manager and supervisor

Central purchasing of nursery related goods by utilizing
our scale merit

Copyright©JP-HOLDINGS,INC All Rights Reserved.

29

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 Companies in the Childcare Industry(Unit: million yen)
30000
JP-HOLDINGS
弊社

25000

Rival A
競合A社
Rival B
競合B社
Rival C
競合C社

20000

Rival D
競合D社
Rival E
競合E社

15000

10000

5000

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

2013年
2013

2014年
2014

2015年
2015

2016年
2016

2017年
2017

2018年
2018

Source: Based on the past six years of the Nikkei MJ’s Service Industry Survey
Copyright©JP-HOLDINGS,INC All Rights Reserved.

30

Long-term Management Vision 2025
andMedium-term Management Plan

Copyright©JP-HOLDINGS,INC All Rights Reserved.

31

New Management
Policy of New Management

Fulfill High Quality
Nursery Business

Enhance Governance& Compliance

Optimize Enterprise
Resources
Reform Organization・Develop Human
Resources

Continue Confidence Building
with Stakeholders

ExpandCurrent
Business

Enhance
Relationshipwith Society

Provide Environment of
Nurturing Children
with Relief

SecondFounding
Stage

Strengthen
Management
Base

Improve Enterprise Value
through Child-raising
Business

New Strategy Long term Management
for Growth
VisionMedium termManagement Plan
(3 years)

Change Corporate Culture“Hands on Approach” “Employee Participation in Management System”“Friendly Working Environment”
Copyright©JP-HOLDINGS,INC All Rights Reserved.

32

New Management
Aim and Principles of New Management
Enhance Governance and Improve Enterprise Value

Establish New
Management
3 Outside Directors and 5 Audit &Supervisory Board Members (1Full-time, 4 Outsides) were elected
at the Extraordinary Shareholders
Meeting on Oct. 24, 2018.

Enhance
Governance & ComplianceSignificant Decrease of Executive Compensation
To cope with confusion in management, cut off 50% of executive
compensation

Achieve Good Relationship with Stakeholders
Open Enterprise Information Actively for Confidence Building with
Stakeholders and Improve Enterprise Value

Strengthen Group Salesforce andOrganizational Skills
Build Organization in which Affiliates Can Share Group Strategy andMeasures and Act Integrally

Revise Personnel System
Recognize Human Resources as Most Important Asset for Corporate,
Implement Fair Evaluation, Further Enhance Ranking System and Training

Fulfill High Quality Child-raising
Improve Enterprise Value

To Receive Many Children to Cope with Children on Waiting Lists Is Our
Mission and Enhance Measures to Become Selected Nurseries
Copyright©JP-HOLDINGS,INC All Rights Reserved.

33

New Management
Provide High Quality Child Raising Services
Problems Solving in the Field

Act Hands On Approach
Promote Operations Reform based on
Hands On Approach
Fulfill Friendly Working Environment
Improve Employees Motivation[Interview by Directors]
Directors go round nurseries and hear voices ofstaffs to find tasks and problems

Tasks①Increase of young staffs②Less mid level staffs③Care for new managers④Work style reformCountermeasures•

Field Research

Review Personnel System

Reduce burden of office
works through ICT

Human Resources Development（Strengthen Education）

・Expand training system
according to staff’s status
・Enhance mid-career recruiting(Utilize recommendation by
employees)
・Review roles of nurseryschool teachers by their hired
style

Copyright©JP-HOLDINGS,INC All Rights Reserved.

Proposals to
Municipalities
・Proposal for
arrangement oflicensed nurseries(Cooperation with Japan
Childcare Association)

34

Business Environment
Measures to Cope ｗｉｔｈ Current and Future Changes of Environment■Children on Waiting Lists
Present to Future
・Demand of nursery is increasing because of
women’s participation in society and this issue
becomes serious
・In the future children on waiting lists will
decrease by countermeasures of government andmunicipal units, impact of declining birthrate■Change of Child-raising Style due
to Women’s Participation in Society
・Women’s participation is increasing every year
and even in rural areas dual income families are
increasing
・Fathers’ involvement(child-care leave) is
increasing■Measures of Government andMunicipal Units
・Various measures are promoted in advance toeliminate children on waiting lists
・Further salary increase for teachers・Free fees measures(Oct. 2019)

Measures to
Cope wit
Change ofEnvironment

Qualitative
Improvement ofChild-raising
Establish New
Child-raising
Business
Measures to
Avoid
Impact from
Outside■Declining Birth Rate・In spite of gov’t measures birth rate is declining
・Combined with aging problem, demographic
difference between Tokyo metropolitan area andrural area exists■Complex Environment
・Currently cope with needs to solve children on
waiting lists issue, but in the future forecast
serious competitive environment due to impact of
declining birth rate etc.
・Seek to exit from homogenization■Problems of Child-raising
Business
・Performance is impacted by number of children,
gov’t and municipal policies, regulation changes
such as declining birth rate, decreasing children
on waiting lists, change of subsidy etc.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

35

Long-term Management Vision
Long-term Management Vision 2025：Fulfill Consolidated Sales 100 BYen
Priority Measures to Fulfill Management Vision

Further Qualitative
Growth of Childraising

Expand Existing
Business

Cope with change from Quantitative to
Qualitative Needs■Pursue safety and relief
in facilities and operation■Improve quality ofnursery school teachers,
strengthen management
and educational system■Expand receiving
children by securing
nursery school teachers■Open new nurseries andaccept consignment basedon rural environment■Promote capital alliance

Strengthen
Management
through Business
Structure Reforms■Reinforce management
structure■Efficient operation andstrong sales promotion■Change of culture
・Develop workplaceenvironment
・Strengthen humanresource development

Copyright©JP-HOLDINGS,INC All Rights Reserved.

Create New
Business Value■Develop and promote
new business・Utilize know-how anddevelop new business・Promote business orcapital alliance entwinedwith related area ofexisting business36

Long-term Management Vision
The Second Founding Stage

Expand Business Scale
Grow as leading company ofchild-raising

Promote Growth
Strategy

Develop Infrastructure
targeting FY3/25 ending

Consolidated
Sales
100BYenFulfill Consolidated Sales 100BYen on FY3/25 ending
40BY

Business orCapitalAlliance

10BY

New
Business

35BY
32BY
30BY

50BY

26.7BY
22.7BY

Existing
Child-raising
Business

20.5BY
17.8BYFY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

Medium-termManagement Plan

FY3/22

FY3/23

FY3/24

FY3/25

Promote to Fulfill Sales 100BY

Copyright©JP-HOLDINGS,INC All Rights Reserved.

37

Medium-term Management Plan
Concept of Business Development to Cope with Change of Business Environment
Verification of Growth Strategy from FY3/19 to FY3/21 (3Years)

Verify Existing New
Business

New
Business■Verify overseas child-raisingbusiness
・Verify overseas business incl.
operation in Vietnam■Verify private school clubs
・Verify business which provide
unique programs while it does notrely on municipal subsidies

Create New Business■Children as life timecustomers
・Utilizing website etc. ,provide goods, services
and solutions according
to process ofchildrearing■Develop infrastructure for New business・Strengthen sales promotion by organizing
development and sales structure・Verify new business in cooperation withcompetitors and different industries
・Verify possibility of industrialization
regarding various know-how

External Sales andConsulting of Existing
Business

Business or Capital AllianceBusinessor Capital
Alliance■Capital Alliance・Actively promote capital alliance withcompetitors or related companies underintensified competitive circumstance(Verify ⇒ Execute)■Business Alliance・Business alliance regarding peripheralbusiness of child-raising with different or
related industries

Existing
Business

Copyright©JP-HOLDINGS,INC All Rights Reserved.

■Utilize know-how ofchild-raising
・Make packages of various inhouse plans related to childraising business and sell themoutside・Reinforce child-raising facilities
opening and operations
consulting

38

Medium-term Management Plan
Reform Organization to Reinforce Group Salesforce and Organizational Skills
・Review operations of Nagoya head office and Tokyo office, change structure to promote rapid
decision making and centralized management

Concept ofOrganizational
Reform・Expand department which develop new facilities and promote new business targeting future
growth strategy
・Expand department to operate group (planning corporate strategy and administration)
・Strengthen governance system to manage each department under control of directors

Promote organizational reform of JPHD head office and Tokyo office to expand support function forsales and operational management
NagoyaHead
OfficeTokyo
OfficeOrganizational
ReformEnhance Corporate Strategy Planning andOperational Control, Newly Build Sales Department
General Meeting of Shareholders

・Clarify function of Nagoya head
office and Tokyo office

Bored of Directors
President

Expand head office function

・Fulfill department which manage
group operations
・Change organizational structure inwhich each department corresponds
rapidly
・Strengthen function to develop new
business for sustainable growthPresident Office

Sales Div.
・Sales Planning Dept. #1(new business development)

・Sales Planning Dept. #2(new facility development)

Review Company
Regulations

Administration Div.

Corporate Planning Div.

・HR Dept.
・General Affairs Dept.
・Accounting&Finance Dept.
・Information System Dept.

・Corporate Planning Dept.
・Legal Dept.
・PR&IR Dept.
・Secretary Office

Review Performance
Evaluation System

Copyright©JP-HOLDINGS,INC All Rights Reserved.

39

Medium-term Management Plan Forecast (Consolidated）
Sales Revenue(New
Openings)

Ordinary Income

New Facilities(Total)

25

35BY
32BY

30BY

2.7BY
2.1BY
9.4%
up

6.7%
Up

1.5BY

38.8% Up
Ordinary
Income Rate
7.3%

2.3BY

17.4% Up

9.5% Up

Ordinary
Income Rate
7.7%

300

Ordinary
Income Rate
7.2%

17

250

15
15

200

12

11

150

9

10

4

5

5

5

0

2019年
FY3/193月期

2020年
FY3/203月期

 Priority measure

2021年
FY3/21
3月期

2018年
FY3/183月期

2019年
FY3/193月期

2020年
FY3/20
3月期

2021年
FY3/21
3月期

100
50

1
2018年
FY3/18
3月期

350

20

26.7BY

12.0%
Up

289

272

326

306

0

2018年 FY3/19
2019年
FY3/18
3月期

3月期

2020年
FY3/20

2021年
FY3/213月期

3月期

Nursery Schools
School Clubs, Children’s Houses
Kindergarten (Overseas Facility)
Total

1. Strengthen safety measures and further improve the quality of child-raising
2. Increase the number of children admitted by opening new facilities and increasing the number of nursery school
teachers at existing facilities
3. Expand investment in human resources (reinforcement of recruitment activities, review of personnel system)
4. Ensure thorough compliance and further strengthen corporate governance
5. Reorganization aimed at improving management and earnings management systems and management efficiency
6. Expand earnings base by developing and promoting new businesses
7. Synergy measures (business alliances and capital alliances) in the child-raising support and education industries

Copyright©JP-HOLDINGS,INC All Rights Reserved.

40

Medium-term Management Plan Forecast (Consolidated)
FY3/19FY3/20FY3/21

Sales Forecast

30BYen32BYen35BYenOrdinary Income Forecast

2.1BYen

2.3BYen

2.7BYen Forecast of New Opening
Nursery Schools
Estimated number of
openings

Estimated number ofchildren admitted
in the first year

Estimated number ofschool clubs andchildren's houses consigned

FY3/1917 facilities

650 children

4 facilities

FY3/20

12 facilities

580 children

5 facilities

FT3/21

15 facilities

630 children

5 facilities*The estimated number of nursery schools, and estimated number of school clubs and children's houses consigned for the
fiscal year ending March 2019 includes the number of facilities that were opened in April 2018

Copyright©JP-HOLDINGS,INC All Rights Reserved.

41

Concrete Measures(1) Company-led childcare business: Opened 2 company-led nurseries in Sep. 2018 in Okinawa•

Started company-led childcare business to cope with diversified needs of nurseries and provide
flexible services①Tie up with companies andprovide our service to theiremployees’ children②Also accept local residents’children to contribute eliminating
waiting children

CabinetOfficeContract①Companies②LocalUsage Fee Residents

JP

Outline of the Facilities
Name

Asc Akebonokaiho
Nursery School

Asc Noborikawa
Nursery School

Location

Naha-shi, Okinawa

Okinawa-shi, Okinawa

60 children

50 children

7:00-19:00（Mon.-Sat.）

7:00-19:00（Mon.-Sat.）

Capacity ofFirst Year
OperatingHours

 Overseas Childrearing Business : Opened 2 kindergartens in Sep. 2017 in Vietnam•

COHAS DA NANG

Opened on Sep. 12, 2017

Operated by 100％ wholly owned subsidiary ”COHAS VIETNAM CO., LTD”
Outline of the Operator

Outline of the Facility
Name

COHAS DA NANG

Name

COHAS VIETNAM CO., LTD

Location

Da Nang City, Vietnam

Location

Da Nang City, Vietnam

Enrollment Limit

200 children
Entrance fee 2,000,000 VND

Fee

Representative/at the time of entry
Nursery fee 5,700,000 VND /month

Operating Hours

Naoto Nishii, Representative Director

6:45-18:00 (Mon.- Sat.)(Served concurrently as director of
JP-HOLDINGS, INC.)

Business
CapitalEstablished

Early childhood education business
6,834,000,000 VND(100% investment by JP-HOLDINGS, INC.)
April 14, 2017

Copyright©JP-HOLDINGS,INC All Rights Reserved.

42

Concrete Measures(2) Private School Club (AEL)
Opened AEL Yushima in Sep. 2016 and AEL Yokohama Business Park in Apr. 2017
Provide unique program without subsidy from municipalities『School Club』
Proper field forplay and study
after school
and weekend＋

Original Program
to enhance
power to live＋

Measures topass junior・high school・・
entrance exam
English, arithmetic,etc.

 Consulting Service
Consulting for newly opening and operation of childrearing facilities••

Contracted（Incl. consecutive contracts from previous year）：10
Prospective new contracts：1

Copyright©JP-HOLDINGS,INC All Rights Reserved.

43

Appendix

Copyright©JP-HOLDINGS,INC All Rights Reserved.

44

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.

45

Overview of School Clubs and Children’s Houses
School Clubs (Broad Definition)
Children’s Houses

After-school Children’s Health Promotion
Business

After-school Children’s Classroom Promotion
Business

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.

46

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)

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

7,272

8,194

9,166

11,867

13,78915,747

17,86820,552

22,79926,779

521

738

839

1,114

1,285

1,234

1,345

1,732

1,168

1,303

707

800

866

1,150

1,325

1,460

1,550

1,781

1,350

1,582

440

444

500

653

717

837

904

1,071

661

910

5.98

6.06

6.67

7.83

8.60

10.03

10.84

12.84

7.87

10.70

* Net income per share is the amount that reflects the stock split.
(million yen)
25,000(million yen)
2000

Net sales

売上高(left axis)

Ordinary income

営業利益(right axis)

Operating income

経常利益(right axis)

1800

20,0001600
1400

15,000

1200
1000

10,000

800
600

5,000

400
200

0

0
2008年…
FY3/08

2009年…
FY3/092010年…
FY3/102011年…
FY3/11

2012年…
FY3/12

2013年…
FY3/132014年…
FY3/14

Copyright©JP-HOLDINGS,INC All Rights Reserved.

2015年…
FY3/152016年…
FY3/162017年…
FY3/1747

Consolidated Results (Balance Sheet / Statement of Cash Flows)
FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

Total assets(million yen)

4,275

5,763

9,432

9,808

10,876

13,521

18,882

21,12624,002

25,761

Net assets(million yen)

1,546

1,903

3,559

3,977

4,452

5,034

5,606

6,279

6,854

7,756

Shareholders’ equity
ratio
(%)

36.1

32.9

37.7

40.5

40.9

37.2

29.7

29.7

28.5

30.1

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18Cash flows fromoperating activities(million yen)

672

378

915

1,205

1,173

1,038

1,294

1,804

1,878

1,865

Cash flows frominvesting activities(million yen)

- 363

- 906

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

Cash flows fromfinancing activities(million yen)

- 157

412

2,473

- 219

514

1,220

3,748

1,553

1,646

- 135

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

1,137

1,022

2,602

2,768

3,188

1,808

2,891

3,798

4,017

4,455

Copyright©JP-HOLDINGS,INC All Rights Reserved.

48

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.

Amount ofdividend per
share
(yen)
Payout ratio(%)

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

1.90

2.00

2.90

3.00

3.20

3.60

4.00

5.00

2.50

3.50

37.2

35.9

36.9

38.9

31.8

32.7

Commemorati Commemorati
ve dividend:ve dividend:
0.50 yen
0.50 yen

31.7

33.0

43.4

38.3

The amount of dividend per share reflects the stock split.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

49

NADESHIKO Brand
We were selected as “NADESHIKO Brand” in FY2015, FY2016 andFY2017 consecutively. We will continue to promote women’s
participation and advancement in the workplace proactively and aim toenhance corporate value.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

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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:
15-31, Aoi 3-chome, Higashi-ku, Nagoya-shi, Aichi
JP-HOLDINGS, INC.

Akihiko Fukuoka, Director
TEL: 052-933-5419 FAX: 052-933-5163