Summary of Business Results for the Third Quarter Ended December 31, 2017
[Japan GAAP] (Consolidated)
February 1, 2018
Listed on the TSE 1
URL: http://www.jp-holdings.co.jp

Company
JP-HOLDINGS, INC.
Stock Code
2749
Representative
Kazuhiro Ogita, President and Representative Director
Contact
Mika Matsumiya, General Manager of Administration Div.
Expected date of filing of annual securities report: February 14, 2018
Preparation of supplementary financial document: Yes
Results briefing: Yes (for institutional investors)

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 2017
(April 1, 2017 through December 31, 2017)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Million yen% Million yen%
Nine months ended Dec. 2017
19,771
18.2
637
-4.9
Nine months ended Dec. 2016
16,720
11.1
669
-32.0
(Note) Comprehensive income
Nine months ended December 2017: 490 million yen (-2.7%)
Nine months ended December 2016: 503 million yen (-19.0%)
Net income
Diluted net income perper share
share
Yen
Yen
Nine months ended Dec. 2017
5.70
Nine months ended Dec. 2016
5.56-

Million yen
855
809

%
5.7
-23.4

Million yen
484
466

%
3.9
-30.2

(2) Consolidated financial position
Total assets

Net assets

Million yen
As of Dec. 31, 2017
As of Mar. 31, 2017

Shareholders’ equity
ratio

Million yen

26,06524,002

%

7,302
6,854

28.0
28.5

(Reference) Shareholders’ equity
As of December 31, 2017: 7,298 million yen
As of March 31 2017: 6,850 million yen

2. Dividends
End of 1Q

End of 2Q
Yen

Year ended Mar. 2017
Year ending Mar. 2018Year ending Mar. 2018 (forecast)

0.00
0.00

-

Annual dividend
End of 3Q
Yen
Yen
-

Year-end

Total
Yen

Yen

2.50

2.50

3.00

3.00

(Notes) Revisions to dividend forecast for the current quarter: None

3．Forecast of consolidated business results for the fiscal year ending March 2018
(April 1, 2017 through March 31, 2018)
Net sales

Operating income

Million yen% Million yen%
Year ending Mar. 201826,125
14.6
1,157
-1.0
(Notes) Revisions to business forecast for the current quarter: None(% change from the previous corresponding period)
Net income
Net income attributable toOrdinary income
owners of parent
per share
Yen
Million yen% Million yen
%
1,400
3.7
777
17.6
9.25

*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(4) Shares outstanding (common stock): None: None: None: None①Number of shares outstanding at the end of period (treasury stock included)
As of December 31, 201787,849,400 shares
As of March 31, 201787,849,400 shares②Treasury stock at the end of period
As of December 31, 2017
2,519,406 shares
As of March 31, 2017
3,164,106 shares③Average number of stock during period (quarterly cumulative period)
Nine months ended December 201785,013,554 shares
Nine months ended December 2016
83,940,674 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 includes the company's shares held by Trust & Custody Services Bank, Ltd. as
trust property of "Stock Benefit Trust (Employee Stock Ownership Plan)".

*Quarterly financial summary is not subject to the quarterly review procedures*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, please refer to “1. Qualitative Information on Quarterly Financial Results(3)Consolidated Earnings Forecasts” (Page 3).
∙ The Company plans to hold results briefing for institutional investors and analysts on February 2, 2018. After the briefing, theCompany will promptly post presentation materials distributed at the 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. Qualitative Information on Quarterly Financial Results ................................................................................................... 2(1) Results of Operations .................................................................................................................................................... 2(2) Financial Position ......................................................................................................................................................... 3(3) Consolidated Earnings Forecasts .................................................................................................................................. 4
3. Quarterly Consolidated Financial Statements ................................................................................................................... 5(1) Quarterly Consolidated Balance Sheets ........................................................................................................................ 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income .... 7(3) Notes on Quarterly Consolidated Financial Statements ................................................................................................ 9(Notes on going concern assumption)........................................................................................................................... 9(Notes if there is a significant change in the amount of shareholders' equity) .............................................................. 9(Additional information) ............................................................................................................................................... 9－ 1 －1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the third quarter of the current consolidated fiscal year, the outlook for the Japanese economy remained unclear due to theunstable international situation, but with continued positive factors such as the recovery in corporate earnings and the improving
trend in both the employment and income environments, the trend towards a gradual recovery has been maintained against the
backdrop of the successful effects of various economic policy initiatives undertaken by the government.
Given this environment, demand for childcare is increasing in response to women's advancement and active participation in society,and as the issue of the number of children waiting for admission continues to become more and more serious. In the ‘New
Economic Policy Package’ approved by the cabinet on December 8, 2017, the government rapidly accelerated its program ofproviding free early childhood education and at the same time fast-tracked its ‘Plan for Raising Children in Peace of Mind’ ahead ofschedule by establishing a policy program to provide daycare for 320,000 children by the end of 2020, and to more effectively
tackle the challenge of delivering improvements both in the recruiting nursery school teachers and in the levels of compensation
they receive. It is expected that the size of the market will continue to expand in response to these government policies, and also that
local governments will continue and expand its efforts to eliminate the problem of having children waiting for admission tochildcare facilities.
Under these circumstances, the Group has continued to strive to boost its recruitment of nursery school teachers and to raise its
retention rates by improving the compensation for employees working at nursery schools and other measures, in pursuit of its aim ofrealizing high-quality childcare. In addition, the Group has actively promoted the opening of approved nursery schools etc., torespond to the rising levels of demand for nursery services, and also opened our Group’s first overseas facility in Vietnam exploiting
the abundant experience that the Group has accumulated through its domestic operations in Japan.
At the end of the third quarter of the current fiscal year, the Group has opened the following new facilities.
(Nursery school)
Asc Tokiwadai Nursery School(Apr. 1, 2017)

Adachi Municipal Gotanno Nursery School(Apr. 1, 2017)

Asc Nagasaki 1-chome Nursery School(Apr. 1, 2017)

Asc Kamimeguro Nursery School(Apr. 1, 2017)

Asc Iwado Kita Nursery School(Apr. 1, 2017)

Asc Imaiminami Nursery School(Apr. 1, 2017)

Asc Chogo Nursery School(Apr. 1, 2017)

Asc Rifu Nursery School(Apr. 1, 2017)

Asc Takeshita Nursery School(Apr. 1, 2017)

Asc Chatan Nursery School(Apr. 1, 2017)

Asc Maezato Nursery School(Jul. 1, 2017)(School club)
Acty Yanagicho(Apr. 1, 2017)

Shitaya Kids’ Club A(Apr. 1, 2017)

Shitaya Kids’ Club B(Apr. 1, 2017)

Matsuba Kids’ Club A(Apr. 1, 2017)

Matsuba Kids’ Club B(Apr. 1, 2017)

Shibasaki Koen Kita No.1 School Club

(Apr. 1, 2017)

Shibasaki Koen Kita No. 2 School Club

(Apr. 1, 2017)

Hanabatake No.2 School Club

(Apr. 1, 2017)(Private school club)
AEL Yokohama Business Park

(Apr. 1, 2017)(Kindergarten (overseas facility))
COHAS DA NANG

(Sep. 12, 2017)－ 2 －As a result, the Group came to have 183 nursery schools, 71 school clubs, 12 children's houses, 5 private school clubs, and 1
kindergarten (overseas facility), making a total of 272 facilities for supporting child-raising at the end of the third quarter of thecurrent fiscal year.

In addition to the above, the Company opened Cohas Kids (a kindergarten) in Vietnam in September 2017, but this is not includedin the number of facilities because it is a franchised facility.

In addition, Asc Kagurazaka Nursery School, which had been running since November 2006, and Asc Hibarigaoka Nursery School,
which had been running since August 2002, have been changed from Tokyo Licensed Nursery School to the Licensed Nursery
School, and reopened in April 2017.
For the above reasons, for the third quarter of the current fiscal year, net sales were 19,771 million yen (up 18.2% year on year),
operating income was 637 million yen (down 4.9% year on year), ordinary income was 855 million yen (up 5.7% year on year),and net income attributable to owners of parent was 484 million yen (up 3.9% year on year).

Although consolidated net sales increased, mainly as a result of increased revenue due to the opening of new facilities and growthin turnover at existing facilities, operating income fell slightly short of the initial forecast. This was due to the impact of expenses
and other factors that were not anticipated at the beginning of the fiscal year, such as an increase of 90 million yen in nondeductible consumption tax due to review of the tax classification of consumption tax, and 112 million yen of costs related to an
extraordinary shareholders meeting.

(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 26,065 million
yen (up 2,063 million yen from the end of the previous fiscal year).
Current assets totaled 9,699 million yen (up 2,639 million yen from the end of the previous fiscal year), mainly because cash anddeposits increased by 2,078 million yen, accounts receivable - other increased by 519 million yen, and others increased by 203
million yen, while deferred tax assets decreased by 94 million yen, and inventories decreased by 77 million yen.
Fixed assets totaled 16,365 million yen (down 575 million yen from the end of the previous fiscal year), mainly because buildings
and structures increased by 557 million yen, and long-term loans receivable increased by 72 million yen, while construction inprogress decreased by 1,090 million yen, investments and other assets decreased by 128 million yen.
Total liabilities amounted to 18,762 million yen (up 1,615 million yen from the end of the previous fiscal year).
Current liabilities totaled 8,368 million yen (up 1,829 million yen from the end of the previous fiscal year), mainly because shortterm loans payable increased by 1,800 million yen, and accounts payable increased by 544 million yen, and others increased by 468
million yen, while current portion of long-term loans payable decreased by 452 million yen, provision for bonuses decreased by
276 million yen, accrued consumption taxes decreased by 101 million yen, income taxes payable decreased by 86 million yen, andnotes and accounts payable decreased by 55 million yen.
Fixed liabilities totaled 10,394 million yen (down 214 million yen from the end of the previous fiscal year), mainly because net
defined benefit liability increased by 33 million yen, and others increased by 33 million yen, while long-term loans payable
decreased by 283 million yen.
Total net assets as of the end of the third quarter of the current fiscal year totaled 7,302 million yen (up 447 million yen from theend of the previous fiscal year), mainly because retained earnings increased by 264 million yen, while treasury stock decreased by
177 million yen.

－ 3 －(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 9, 2017, but actual results
may be different from the forecast according to the changes in business situations, etc.
If there are any changes, the company will disclose them properly.

－ 4 －[Quarterly Consolidated Financial Statements][Quarterly Consolidated Balance Sheet](Thousand yen)Previous Fiscal Year
(March 31, 2017)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
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－ 5 －Current Third Quarter(December 31, 2017)

4,017,591
50,552
108,701
421,877
1,698,958
763,876-766
7,060,792

6,096,023
59,35330,936
327,827
2,218,857
967,787-798
9,699,988

10,296,859-3,434,689
6,862,169
5,665-1,3704,294
614,965-381,567
233,398
980,894
1,694,631
9,775,387

11,272,878-3,852,991
7,419,886
5,665-2,1383,527
709,403-448,810
260,592
980,894604,336
9,269,237

288,666
234,792
523,458

265,877
217,712483,590629,836
3,176,073
1,701,345
328,764
824,994-18,574
6,642,439
16,941,286
24,002,078

665,915
3,248,478
1,712,556
307,875
696,363-18,719
6,612,470
16,365,298
26,065,286

(Thousand yen)Previous Fiscal Year
(March 31, 2017)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 6 －Current Third Quarter(December 31, 2017)

214,960
3,250,349
841,422
157,883
165,273
398,839
10,726577
1,498,695
6,538,727

159,4811,800,000
2,797,838
1,385,939
71,86563,482
122,638
1,967,387
8,368,633

9,855,493
1,668
471,565
3,700
235,619
40,923
10,608,970
17,147,697

9,572,034
1,999
504,6223,700
237,929
74,075
10,394,361
18,762,994

1,603,955
1,449,544
4,730,138-869,918
6,913,719

1,603,955
1,449,544
4,994,973-692,625
7,355,847-34,596852-29,580-63,324
3,985
6,854,381
24,002,078-37,86942-1,111-18,539-57,477
3,922
7,302,292
26,065,286

[Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income][Quarterly Consolidated Statement of Income][Third Quarter of FY3/18](Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Subsidy income
Guarantee commission received
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on valuation of investment securities
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－ 7 －Previous Third Quarter(April 1, 2016–
December 31, 2016)
16,720,268
14,217,613
2,502,654
1,832,953
669,700

Current Third Quarter(April 1, 2017–
December 31, 2017)
19,771,184
17,018,161
2,753,023
2,116,003
637,019

57,56065,58749,157
12,347
184,653

83,297
126,662
49,206
17,235
276,401

34,188
10,93245,120809,232

38,773
13,192
5,920
57,886855,533

398
398
808,834
215,749
126,742
342,491
466,342-38
466,381

823
1,404
2,228
853,305
258,219
110,694368,914484,390-63
484,454

[Quarterly Consolidated Statement of Comprehensive Income][Third Quarter of FY3/18](Thousand yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to shareholdersof the parent company
Comprehensive income attributable to non-controllinginterests－ 8 －Previous Third Quarter(April 1, 2016–
December 31, 2016)
466,342

Current Third Quarter(April 1, 2017–
December 31, 2017)484,390

31,863-1,762
7,158
37,259503,601-3,272-810-1,111
11,0405,846
490,237

503,640

490,300-38-63

(3) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Third quarter of FY3/18 (April 1, 2017 – December 31, 2017)
None(Notes if there is a significant change in the amount of shareholders' equity)
Third quarter of FY3/18 (April 1, 2017 – December 31, 2017)
None(Additional information)[Trading regarding the stock distribution trust (employee stock ownership disposal type)]
Third quarter of the current fiscal year (April 1, 2017 – December 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
are members 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 ownershipdisposal type) (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 trustbanks’ loans to obtain the treasury shares; therefore, should there be a residuary liability equivalent to the loss on
the sales of stocks due to the reasons such as nosedive of our share prices at the completion of the trust, ourcompany will compensate 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 869,660 thousand yen and 3,162,400 stocks at the end of the previous fiscal year, and692,367 thousand yen and 2,517,700 stocks at the end of the third quarter of the current fiscal year.
(3) Book value of debts appropriated by the gross price method
End of the previous fiscal year: 915,102 thousand yen
End of the third quarter of the current fiscal year: 716,346 thousand yen－ 9 －