Summary of Business Results for the Fiscal Year Ended March 31, 2017
[Japan GAAP] (Consolidated)
May 9, 2017
Company
Listed on the TSE 1
JP-HOLDINGS, INC.
Stock Code2749
URL: http://www.jp-holdings. co.jp
Representative
Kazuhiro Ogita, President and Representative Director
C o n t a c t
Mika Matsumiya, General Manager of Administration Div.
T E L: +81-52-933-5419
Expected date of annual shareholders’ meeting: June 29, 2017
Expected starting date of dividend payment: June 30, 2017
Expected date of filing of annual securities report: June 30, 2017
Preparation of supplementary financial document: Yes
Results briefing: Yes (for institutional investors, analysts and individual investors)（Rounded down to million yen ）１. Consolidated business results for the fiscal year ended March 2017
(April 1, 2016 through March 31, 2017)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Million yen% Million yen
Year ended Mar. 2017
22,80010.9
1,263Year ended Mar. 2016
20,55215.0
1,834(Note) Comprehensive income:Year ended March 2017: 691 million yen (-38.8%)
Year ended March 2016: 1,130 million yen (16.3%)
Net income
per share

Diluted net income
per share

Yen
Year ended Mar. 2017
8.06
Year ended Mar. 2016
14.32
(Reference) Investment earnings/loss on equity-method:Year ended March 2017: - million yen
Year ended March 2016: - million yen

Net income attributable toowners of parent

Ordinary income

%
-31.1
28.2

Million yen
1,445
1,884

Return on
equity

Yen

%
9.9
19.4

%
-23.3
15.2

Million yen
677
1,195

Ratio of ordinary
income to total
assets
%
6.3
9.3

%
-43.3
19.1

Ratio of operating
income to net sales
%
5.5
8.9

(2) Consolidated financial position
Total assets
Million yen
24,191
21,519As of Mar. 31, 2017
As of Mar. 31, 2016

Net assets
Million yen
7,161
6,570

Shareholders’ equity
ratio

Net assets per
share
%

Yen

29.6
30.5

84.52
78.68

Cash flows fromfinancing activities
Million yen
1,646
1,553

Cash and cash equivalents
at the end of period
Million yen
4,017
3,798

(Reference) Shareholders’ equity:
As of March 31, 2017: 7,157 million yen
As of March 31, 2016: 6,566 million yen(3) Consolidated results of cash flows

Year ended Mar. 2017
Year ended Mar. 2016

Cash flows fromoperating activities
Million yen
1,878
1,804

Cash flows frominvesting activities
Million yen-3,305-2,449

2. Dividends
Annual dividend
End of
1Q

End of2Q

End of3Q

Year-end

Total
dividend(Total)

Total

Dividend
payout ratio(Consolidated)

Rate of total
dividend to
net assets(Consolidated)
%
6.8
3.1

Yen
Yen
Yen
Yen
Yen
Million yen%
Year ended Mar. 2016
0.00
5.00
5.00
439
34.9
Year ended Mar. 2017
0.00
2.50
2.50
219
31.0
Year ending Mar. 2018
0.00
3.00
3.00
32.4
(forecast)(Note) The total amount of dividends for the fiscal year ended March 2017 includes 7 million yen of dividend on the company's share held byTrust & Custody Services Bank, Ltd. as trust property of "Stock Benefit Trust (Employee Stock Ownership Plan)".

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

Operating income

Ordinary income

Million yen%

Million yen%

Million yen%

26,125

14.6

1,157

-8.4

1,400

-3.1

Net income
attributable toowners of parent
Million yen%

777

Net income
per share

14.8

Yen

9.25

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes
in the scope of consolidation): None
(2) 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(3) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included)
As of March 31, 201787,849,400 shares
As of March 31, 2016
87,849,400 shares② Treasury stock at the end of period:
As of March 31, 2017
3,164,106 shares
As of March 31, 2016
4,394,106 shares③ Average number of stock during period
Year ended March 31, 201784,093,963 sharesYear ended March 31, 2016
83,455,294 shares(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and theaverage number of stock during period for the fiscal year ended March 2017 includes the company's shares held byTrust & Custody Services Bank, Ltd. as trust property of "Stock Benefit Trust (Employee Stock Ownership Plan)".

(Reference) Summary of non-consolidated business results
1. Non-consolidated business results for the fiscal year ended March 2017
(April 1, 2016 through March 31, 2017)(1) Non-consolidated results of operations

Year ended Mar. 2017
Year ended Mar. 2016

Net sales
Million yen
%
1,530
28.1
1,194
15.5

(% change from the previous corresponding period)
Operating income
Ordinary income
Net income
Million yen% Million yen%
Million yen
%
463
3.9
738
24.6
606
42.6
446
-7.2
592
-22.3
425
-28.3

Net income
per share
Yen
Year ended Mar. 2017
Year ended Mar. 2016

7.21
5.10

Diluted net income per
share
Yen
-

(2) Non-consolidated financial position
Total assets
As of Mar. 31, 2017
As of Mar. 31, 2016

Million yen
17,72015,243

Net assets
Million yen
3,825
3,301

Shareholders’ equity
ratio

Net assets per
share
%

21.6
21.7

Yen
45.18
39.56

(Reference) Shareholders’ equity:
As of March 31, 2017: 3,825 million yen
As of March 31, 2016: 3,301 million yen* Financial summary is not subject to auditing procedures* Explanation regarding appropriate use of business forecasts and other special instructions
・Forecasts regarding future performance in this material are based on information currently available to the company
and certain assumptions that the company deems to be reasonable at the time this report was prepared. Actual results
may differ significantly from the forecasts due to various factors.
・The company plans to hold results briefing for institutional investors and analysts on May 10, 2017 (Wednesday) andbriefing for individual investors on May 27, 2017 (Saturday). After the results breifing, the company will promptly
post presentation materials distributed at the results briefing on the company website. Please confirm the results
briefing schedule and other information on the company website.

○Table of Contents of the Appendix

1. Summary of Operating Results .................................................................................................................................... 2(1) Summary of operating results for the current fiscal year ........................................................................................... 2(2) Summary of financial condition in the current fiscal year ......................................................................................... 3(3) Summary of cash flow in the current fiscal year ........................................................................................................ 4(4) Future outlook ............................................................................................................................................................ 6
2. Basic Policies regarding the Selection of Accounting Standards ................................................................................ 6
3. Consolidated Financial Statements and Major Notes .................................................................................................. 7(1) Consolidated Balance Sheet ....................................................................................................................................... 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .................................... 9(3) Consolidated Statements of Changes in Shareholders’ Equity ................................................................................ 11(4) Consolidated Statement of Cash Flows ................................................................................................................... 13(5) Notes on the Consolidated Financial Statements ..................................................................................................... 15(Notes on going concern assumption) ........................................................................................................................... 15(Additional information) ............................................................................................................................................... 15(Segment Information) .................................................................................................................................................. 15(Per-stock Information) ................................................................................................................................................. 16(Significant events after the reporting period) ............................................................................................................... 16－1－

1. Summary of Operating Results(1) Summary of operating results for the current fiscal year
The Japanese economy during the current consolidated fiscal year was in the phase of gradual recovery as consumer
spending has been firm due to improved employment and income situations. However, the situation remains
uncertain, with the global economy being highly volatile as the worry over the economic slowdown in the emerging
Asian countries including China persists and this is compounded by the Brexit problem and the influence of the US
presidential election.
In the nursery service environment, there is a nationwide tendency to increase the number of nursery schools at a
local authority level to reduce the number of children on waiting lists. The government’s “Acceleration Plan for
Reducing Wait-listed Children” aimed at increasing the employment rate of women, is now proposing a net increaseof childcare capacity at 530,000 persons (including the capacity increase of the business-led childcare projects),
therefore the market size is looking to increase continually.
The number of children on waiting lists in Japan is 23,553 as of April 2016 (up 386 year on year). This problem
continues to attract a great deal of interest from the society, as the government postpones the target date tocompletely eliminate the children on waiting lists until the end of 2019 along with an increase in the number ofactive women.
In such an environment, our group managed to newly open 13 nursery schools (Tokyo 3, Kanagawa 1, Aichi 2,
Miyagi 1, Yamagata 1, Fukushima 1, Shiga 1, Osaka 1, Fukuoka 1, Okinawa 1), 8 school clubs (Tokyo 6, Aichi 2), 3
children’s houses (Tokyo 1, Aichi 2), and a private school club (Tokyo 1).
In addition to the above, our group obtained the stocks of Sotetsu Amenity Life K.K. on September 30, 2016 andturned it into our subsidiary as Amenity Life Inc. Accordingly we are now operating the following additional
facilities: 4 nursery schools (GENKIDS Ryokuen-toshi Nursery School, GENKIDS Seya Nursery School,
GENKIDS Izumi-chuo Nursery School, GENKIDS Hoshikawa Nursery School), and 3 private school clubs (Elfikids
Futamatagawa, Elfikids Ryokuen-toshi, Elfikids Turugamine).
As a result, as of the end of March 2017, the total number of our nursery schools stands at 172; school clubs at 63;
children’s houses at 12; and private school clubs at 4, at a grand total of 251 childcare support facilities.
Incidentally, the Ryuhoku Nursery School that we had been operating since April 2013 was relocated and reopened
in July 2016 as the licensed Asc Ryuhoku Nursery School.
In summary, our group’s consolidated sales were 22,800 million yen (up 10.9% year on year), operating income
1,263 million yen (down 31.1% year on year) and ordinary income 1,445 million yen (down 23.3% year on year),
therefore the net income attributable to owners of parent is 677 million yen (down 43.3% year on year).

－2－(2) Summary of financial condition in the current fiscal year
The financial condition at the end of the current consolidated fiscal year reported the total assets of 24,191 million
yen (up 2,672 million yen from the end of the previous fiscal year).
Current assets were 7,254 million yen (up 300 million yen from the end of the previous fiscal year): this was mainly
because the cash and cash deposits grew by 239 million yen and other assets grew by 135 million yen, while theaccounts receivable decreased by 71 million yen.
Fixed assets totaled 16,936 million yen (up 2,371 million yen from the end of the previous fiscal year). This was due
to an increase in the following assets among others: buildings and structures (949 million yen); long-term loans (294million yen); goodwill (288 million yen); investment securities (316 million yen); intangible fixed assets (222
million yen); investment and other assets (112 million yen); and deferred tax assets (149 million yen).
Total liabilities were 17,030 million yen (up 2,081 million yen from the end of the previous fiscal year).
Current liabilities were 6,421 million yen (up 471 million yen from the end of the previous fiscal year) and this isdue to an increase in the following among others: current portion of long-term loans payable (314 million yen);others (157 million yen); note and accounts payable (139 million yen); allowance for bonuses (64 million yen); and adecrease in the accrued consumption taxes, etc. (200 million yen).
Fixed liabilities were 10,608 million yen (up 1,610 million yen from the end of the previous fiscal year) and this isdue to an increase in the following among others: long-term debt (1,398 million yen); liabilities related to retirement
benefits (93 million yen); asset retirement obligations (79 million yen); and others (40 million yen).
Total net assets at the end of the current consolidated fiscal year were 7,161 million yen (up 590 million yen from theend of the previous fiscal year) and this is due to an increase in the following among others: retained earnings (238
million yen); valuation difference on available-for-sale securities, etc. (18 million yen); and a decrease in treasury
stock (338 million yen).

－3－

(3) Summary of cash flow in the current fiscal year
Cash and cash equivalents (hereinafter referred to as “the funds”) for the current consolidated fiscal year were 1,878
million yen from the funds obtained through operating activities; 3,305 million yen paid out in investing activities;
and 1,646 million yen obtained through financing activities, totaling 4,017 million yen, up 218 million yen from theend of the previous fiscal year.
The cash flow situations and their reasons for the current consolidated fiscal year are as follows:[Cash flows from operating activities]
The funds obtained through operating activities were 1,878 million yen (1,804 million yen during the previous
consolidated fiscal year).
This is due to the following: net income before income taxes and others (1,051 million yen); depreciation costs (653
million yen); impairment loss (391 million yen); decrease in accounts receivable (207 million yen); and increase innote and accounts payable and accrued expenses (204 million yen); but there was the payment of corporate tax, etc.
(783 million yen).
Compared to the previous consolidated fiscal year, the funds obtained increased by 74 million yen. This is, while thenet income before income taxes and others decreased by 744 million yen, there was an increase in the following:accounts receivable (392 million yen); impairment loss (307 million yen); and note and accounts payable andaccrued expenses (118 million yen).
[Cash flows from investing activities]
Total expenditures of the funds towards the investing activities were 3,305 million yen (2,449 million yen during theprevious consolidated fiscal year).
This is due to the following, despite the income through the collection of long-term loans receivable (201 million
yen): expenditure towards purchase of property, plant and equipment (2,023 million yen); long-term loan
expenditures (515 million yen); expenditures towards obtaining investment securities (367 million yen); andexpenditures towards obtaining investments in subsidiaries resulting in change in scope of consolidation (349 million
yen).
Compared to the previous consolidated fiscal year, the fund expenditures increased by 855 million yen. This is, while
the revenue from the sales and redemption of investment securities decreased by 300 million yen, there was anincrease in the following: expenditures towards obtaining investments in subsidiaries resulting in change in scope of
consolidation (349 million yen) and expenditure towards intangible fixed assets obtained (130 million yen).
[Cash flows from financing activities]
Total increase of the funds from the financing activities was 1,646 million yen (1,553 million yen during the previous
consolidated fiscal year).
This is due to an increase in the following, despite the income through long-term debt (5,062 million yen) and thedisposal of treasury stock (369 million yen): repayments of long-term loans (3,348 million yen) and payment ofdividends (436 million yen).
Compared to the previous consolidated fiscal year, the funds increased by 92 million yen. This is, while the revenue
from the disposal of treasury shares increased by 369 million yen and the income through long-term debt increased
by 216 million yen, there was an increase in the following: expenditures towards repayment of long-term debt (390
million yen) and the payment of dividends (102 million yen).

－4－

The related index of our group’s cash flow is as follows:
FY3/15
Shareholders’ equity ratio (%)
30.2
Shareholders’ equity ratio
154.1
against current price (%)
Cash flow to interest-bearing
7.3
debts ratio (years)
Interest coverage ratio (x)32.9

FY3/16

FY3/17
30.5
159.0

29.6
98.0

6.3

7.0

49.4

36.5

Notes:
Shareholders’ equity ratio = shareholders’ equity/total assets
Shareholders’ equity ratio against current price = total current stock price/total assets
Cash flow to interest-bearing debts ratio = interest-bearing debts/cash flow
Interest coverage ratio = cash flow/interest payment[Note 1] All calculated based on consolidated fiscal amounts.
[Note 2] Total current stock price calculated based on the total number of stocks issued minus treasury shares.
[Note 3] Cash flow here signifies operating cash flow.
[Note 4] Interest-bearing debts here include all the debts that incur interests and appropriated on the consolidatedbalance sheet.

－5－(4) Future outlook
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; therefore they
are not meant to guarantee the realization of such forecasts by our company.
The details of the nursery facilities that were newly commissioned during the fiscal year ended March 2017 andoperational as of April 1, 2017 by our group are as follows:
Nursery schools: 10 schools
Miyagi 1; Tokyo 5; Kanagawa 2; Fukuoka 1; Okinawa 1
School clubs: 8 clubs
Tokyo 8
Private school club:

1 clubKanagawa 1
Separate from the above facilities, we have transformed, relocated and reopened the existing Tokyo licensed nurseryschools (Asc Kagurazaka Nursery School and Asc Hibarigaoka Nursery School) as the licensed nursery schools.
Additionally, we are planning to open another licensed nursery school after July 2017.
The forecast for the consolidated business performance of the next fiscal year includes the further increased sales dueto the increase in the number of children accepted, while improved treatments and strengthened recruitment activities
for childcare workers as well as the new business projects will incur increased costs, resulting in a reduced ordinary
income.
Therefore the forecast of the consolidated business performance of the next fiscal year is as follows: net sales 26,125
million yen; operating income 1,157 million yen; and ordinary income 1,400 million yen.
2. Basic Policies regarding the Selection of Accounting Standards
Our group produces the financial statements based on the Japanese standard, while taking into consideration thecomparabilities of various financial statement terms as well as those of various companies. Incidentally, theapplication of international accounting standards will be appropriately enforced, in consideration of various
situations inside and outside Japan.

－6－

[Consolidated Financial Statements and Major Notes][Consolidated Balance Sheet](Thousand yen)Previous Fiscal Year
(March 31, 2016)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Investment securities
Inventories
Deferred tax assets
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
LandConstruction in progress
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets－7－

Current Fiscal Year
(March 31, 2017)

3,777,936
41,83921,02798,453442,078
1,770,729
802,493-549
6,954,010

4,017,591
50,552
108,701
441,601
1,698,958
937,974-766
7,254,615

8,404,192-2,448,271
5,955,921
9,148-4,1305,017
484,281-284,812
199,469
980,894
1,759,076
8,900,378

10,296,859-3,391,122
6,905,736
5,665-1,3704,294
614,965-381,429
233,536
980,894
1,694,631
9,819,092

12,135
12,135

288,666
234,792
523,458

313,534
2,881,772
1,628,547
164,472
679,407-15,213
5,652,521
14,565,035
21,519,046

629,836
3,176,073
1,701,345
313,730
791,899-18,5746,594,310
16,936,862
24,191,477

(Thousand yen)Previous Fiscal Year
(March 31, 2016)

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Reserve for bonuses
Asset retirement obligation
Deferred tax liabilities
Other
Total current liabilities
Fixed liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Long-term accounts payable - other
Asset retirement obligation
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－8－

Current Fiscal Year
(March 31, 2017)

191,1072,935,368
691,961
364,677
67,491
334,000
23,892
1,341,386
5,949,884

214,960
3,250,349
831,399
164,448
51,182398,839
10,726577
1,498,695
6,421,178

8,457,330
2,240
377,7144,950
156,505
8,998,740
14,948,625

9,855,493
1,668
471,565
3,700
235,619
40,923
10,608,970
17,030,149

1,603,955
1,449,544
4,798,586-1,208,168
6,643,918

1,603,955
1,449,544
5,037,085-869,918
7,220,667-52,792-24,742-77,534
4,036
6,570,420
21,519,046-34,596852-29,580-63,324
3,985
7,161,328
24,191,477

[Consolidated Statement of Income and Consolidated Statement of Comprehensive Income][Consolidated Statement of Income](Thousand yen)Previous Fiscal Year
(April 1, 2015–
March 31, 2016)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Guarantee commission received
Subsidy income
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Commission fee
Rights on issuance of new shares
Physically handicapped employment levy
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Extraordinary income
Extraordinary loss
Loss on retirement of fixed assets
Loss on impairment long-lived asset of facilities
Loss on impairment long-lived asset of Tokyo branch
Total extraordinary loss
Income before income taxes and others
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Net income
Net loss attributable to non-controlling interests
Net income attributable to owners of parent－9－

Current Fiscal Year
(April 1, 2016–
March 31, 2017)

20,552,867
16,898,400
3,654,466
1,819,495
1,834,970

22,800,084
19,054,064
3,746,020
2,482,035
1,263,984

57,337
5,467
57,894
15,578136,277

85,29865,60886,51814,421
251,847

38,716
22,795
16,314
6,950
2,177
86,953
1,884,295

49,808
9,339
4,625
6,149
69,923
1,445,908

-

400
400

4,270
37,53445,94387,748
1,796,546
703,274-102,069
601,204
1,195,342-74
1,195,416

3,415
391,040
394,455
1,051,852
502,942-128,775
374,166
677,686-51
677,737

[Consolidated Statement of Comprehensive Income](Thousand yen)Previous Fiscal Year
(April 1, 2015–
March 31, 2016)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－ 10 －

Current Fiscal Year
(April 1, 2016–
March 31, 2017)

1,195,342

677,686-53,571-11,535-65,107
1,130,234

18,195852-4,838
14,210691,896

1,130,309

691,947-74-51

[Consolidated Statements of Changes in Shareholders’ Equity]
Previous Fiscal Year (April 1, 2015–March 31, 2016)(Thousand yen)
Shareholders' equity
CapitalBalance at the beginning ofcurrent period

Capital surplus

Retained earnings

1,000,000

845,589

603,955

603,955

3,936,990

Total shareholders'equityTreasury stock-258

5,782,322

Changes of items during theperiodIssuance of new shares

1,207,910

Dividends from surplus-333,821-333,821

Net income attributable toowners of parent

1,195,416

1,195,416

Purchase of treasury stock-1,207,910-1,207,910

Disposal of treasury stock--

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period603,955

603,955

861,595-1,207,910

861,595

1,603,955

1,449,544

4,798,586-1,208,168

6,643,918

Total accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at the beginning ofcurrent period
Changes of items during theperiod779

Deferred gains orlosses on hedges

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests-13,206-12,427

4,111-

Total net assets

5,774,006

Issuance of new shares

1,207,910

Dividends from surplus-333,821

Net income attributable toowners of parent

1,195,416

Purchase of treasury stock-1,207,910

Disposal of treasury stock-

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period-53,571--11,535-65,107-74-65,182-53,571--11,535-65,107-74

796,413-52,792--24,742-77,534

4,036

6,570,420－ 11 －

[Consolidated Statements of Changes in Shareholders’ Equity]
Current Fiscal Year (April 1, 2016–March 31, 2017)(Thousand yen)
Shareholders' equity
CapitalBalance at the beginning ofcurrent period

Capital surplus

Retained earnings

1,603,955

1,449,544--

4,798,586

Total shareholders'equityTreasury stock-1,208,168

6,643,918

Changes of items during theperiodIssuance of new shares-

Dividends from surplus-439,238-439,238

Net income attributable toowners of parent

677,737

677,737

Purchase of treasury stock--

Disposal of treasury stock

338,250

338,250

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period--238,499

338,250

576,749

1,603,955

1,449,544

5,037,085-869,918

7,220,667

Total accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at the beginning ofcurrent period
Changes of items during theperiod-52,792

Deferred gains orlosses on hedges

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests-24,742-77,534

4,036-

Total net assets

6,570,420

Issuance of new shares-

Dividends from surplus-439,238

Net income attributable toowners of parent

677,737

Purchase of treasury stock-

Disposal of treasury stock

338,250

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period18,195852-4,838

14,210-51

14,15918,195852-4,838

14,210-51

590,908-34,596852-29,580-63,324

3,985

7,161,328－ 12 －

[Consolidated Statement of Cash Flows](Thousand yen)Previous Fiscal Year
(April 1, 2015–
March 31, 2016)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in liabilities relating to retirement benefits
Increase (decrease) in provision for directors’ retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on sale of investment securities
Loss (gain) on sales of fixed assets
Loss on retirement of fixed assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Decrease (increase) in accrued consumption taxes
Decrease (increase) in notes and accounts payable-trade
Decrease (increase) in accounts payable - other and accrued
expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in other current assets
Decrease (increase) in other fixed assets
Increase (decrease) in other current liabilities
Increase (decrease) in other fixed liabilities
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities－ 13 －

Current Fiscal Year
(April 1, 2016–
March 31, 2017)

1,796,546
605,292
83,477-1,414-55,000
45,830-61,140-57,547
38,716
4,270
16,181
43,852-184,802-80,897-18,752

1,051,852
653,659
391,040
15,192
3,578
38,07058,998-87,919
49,808
3,102
-400
3,415
-5,190-10,248
207,645-14,327
23,85285,444204,142-3,271
245,646-18,605-23
10,3384,950
2,499,092
18,167-36,507-676,733
1,804,019-16,308
47,8199,293
18,13031,521
11,6762,688,407
24,120-51,410-783,076
1,878,041

(Thousand yen)Previous Fiscal Year
(April 1, 2015–
March 31, 2016)

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of property, plant and equipment
Proceeds from sales and redemption of investment securities
Proceeds from cancellation of investment securities
Purchase of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments of long-term loans receivableCollection of long-term loans receivable
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Other payments
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of finance lease obligations
Proceeds from issuance of common shares
Cash dividends paid
Proceeds from disposal of treasury shares
Purchase of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－ 14 －

Current Fiscal Year
(April 1, 2016–
March 31, 2017)-1,971,194-2,084
12,450300,000
8,144-296,771-187,577
41,957-504,000
190,730-2,023,401-132,696
400
97,692-367,651-115,920
51,957-515,300
201,518--349,337-41,136-2,449,480-152,732-3,305,471

4,845,910-2,958,090-884
1,207,910-333,819-1,207,910
1,553,116
907,654
2,891,309
3,798,964

1,500,000-1,500,000
5,062,000-3,348,855-436,275
369,189
1,646,058
218,627
3,798,964
4,017,591

(5) Notes on the consolidated financial statements(Notes on going concern assumption)
Not applicable(Additional information)[Application of policy regarding the retrieval of the deferred tax assets]
Current consolidated fiscal year (April 1, 2016 – March 31, 2017)
We have started utilizing the “policy regarding the retrieval of the deferred tax assets” (Corporate AccountingStandards Policy No.26, March 28, 2016) since the current consolidated fiscal year.
[Trading regarding the stock distribution trust (employee stock ownership disposal type)]
Current consolidated fiscal year (April 1, 2016 – March 31, 2017)
At our company, we have a “stock distribution trust (employee stock ownership disposal type)” (hereinafterreferred to as “this system”) to improve the welfare of our employees as well as to provide the incentive for theadded corporate value.
(1) Summary of tradingThis system is an incentive plan to return the stock appreciation merits of our company to all employees who aremembers of the “JP Employees Stock Ownership” (hereinafter referred to as “the stock ownership”).
In this system, our company is bound by the stock distribution trust contract (employee stock ownership disposaltype) (hereinafter referred to as “this trust contract”) with our company as the trustor and Mizuho Trust & Banking
Co., Ltd. as the trustee. The trust set up in accordance with this trust contract is referred to as “this trust.”
Additionally, Mizuho Trust & Banking Co., Ltd. is bound by the re-trust contract with Trust & Custody Services
Bank, Ltd. (hereinafter referred to as “Trust E Bank”) with the said bank as the re-trustee to re-trust the
management of the trust assets such as securities.
In the future, Trust E Bank will obtain in bulk the stocks of our company that are to be acquired by the stock
ownership in advance, and it will sell the stocks according to the stock purchases by the stock ownership. Should
the equivalent amount to the profit from sales of stocks accumulate in this trust’s assets through the sale by Trust E
Bank to the stock ownership before the termination of the trust, this will be distributed to the members of the stock
ownership who fulfill the beneficiary qualifications as the residuary assets. Our company guarantees the trust banks’loans to obtain the treasury shares; therefore, should there be a residuary liability equivalent to the loss on the salesof stocks due to the reasons such as nosedive of our share prices at the completion of the trust, our company willcompensate for the said liability according to the guarantee contract.
(2) Own stocks remaining in the trust
Our company appropriates the own shares remaining in the trust as the treasury shares as part of the net assets
through the book value of the trust (except for the incidental expenses). The book value and the number of stocksof the treasury shares are 1,207,910 thousand yen and 4,392,400 stocks at the end of the previous consolidated
fiscal year, and 869,660 thousand yen and 3,162,400 stocks at the end of the current consolidated fiscal year.
(3) Book value of debts appropriated by the gross price method
End of the previous consolidated fiscal year: 1,207,910 thousand yen
End of the current consolidated fiscal year: 915,102 thousand yen(Segment Information)
As our group operates within one single segment (nursery service), we have omitted the descriptions as such.

－ 15 －

(Per-stock Information)
Previous Fiscal Year

Current Fiscal Year

(April 1, 2015–(April 1, 2016–

March 31, 2016)

March 31, 2017)

Net assets per share

78.68 yen

84.52 yen

Net income per share

14.32 yen

8.06 yen

Notes:
1. Diluted net income per share is omitted as there are no dilutive shares.
2. The own stocks remaining in the trust as appropriated as the treasury stock in the capital stock are, according
to the calculation of net income per share, included as the treasury shares that are deducted from the mid-term
average number of stocks, and according to the calculation of net assets per share, are included in the numberof treasury shares that are deducted from the total number of stocks issued at the end of term. According to
the calculation of net income per share, mid-term average number of said treasury shares deducted was
3,753,731 stocks during the current consolidated fiscal year. According to the calculation of net assets per
share, the number of deducted end-of-term treasury shares was 3,162,400 stocks at the end of the current
consolidated fiscal year.
3. The basis for calculating net income per share is as follows:
Previous Fiscal Year
(April 1, 2015–
March 31, 2016)
Net income (thousand yen)
1,195,416
Amount not belonging toordinary stockholders
N/A(thousand yen)
Net income regarding theordinary shares
1,195,416(thousand yen)
Mid-term average number of
83,455,294
ordinary shares (stocks)(Significant events after the reporting period)
Not applicable－ 16 －

Current Fiscal Year
(April 1, 2016–
March 31, 2017)677,737
N/A

677,737
84,093,963