Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019
[under Japanese GAAP]May 9, 2019
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

JP-HOLDINGS, INC.
First Section of the Tokyo Stock Exchange2749
https://www.jp-holdings.co.jp
Koichiro Furukawa, President and Representative Director
Akihiko Fukuoka, Director
TEL: +81-52-933-5419

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to submit annual securities report:
Preparation of supplementary explanatory material on financial results:
Holding of financial results presentation meeting:June 27, 2019
June 28, 2019
June 28, 2019
Yes
Yes (for media members,
institutional investors, analysts
and individual investors)(Amounts are rounded down to the nearest million yen, unless otherwise noted)

1.

Consolidated financial results for the fiscal year ended March 31, 2019
(From April 1, 2018 to March 31, 2019)(1) Consolidated operating results(Percentage figures indicate year-on-year changes)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%
Millions of yen%
Millions of yen%
Fiscal year ended
March 31, 201929,298
9.4
1,531
17.5
1,920
21.4
March 31, 2018
26,779
17.5
1,303
11.5
1,582
17.1
Note: Comprehensive income
Fiscal year ended March 31, 2019: 950 million yen [7.0%]
Fiscal year ended March 31, 2018: 888 million yen [31.5%]

Earnings per share

Diluted earnings
per share

Return on equity

Millions of yen

1,071
910

Ordinary profit/
total assets

Yen
Yen
%
Fiscal year ended
March 31, 2019
12.44
–
12.8
March 31, 2018
10.70
–
12.5
Reference: Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2019:– million yen
Fiscal year ended March 31, 2018: (25) million yen

%

17.7
37.6

Operating profit/
net sales
%

7.1
6.4

%

5.2
4.9

(2) Consolidated financial position
Total assets
As ofMarch 31, 2019
March 31, 2018
Reference: Equity

Millions of yen

28,25525,758
As of March 31, 2019:
As of March 31, 2018:

Net assets

Equity ratio

Millions of yen

Net assets per share
%

8,950
7,756

31.7
30.1

Cash flows frominvesting activities

Cash flows fromfinancing activities

Yen

102.2390.63

8,950 million yen
7,752 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2019
March 31, 2018

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,829
1,865

(940)
(1,292)

1,475
(135)

6,816
4,455

2.

Dividends
Annual dividends per share
1st
2nd
3rd
quarter-end quarter-end quarter-end

Fiscal year ended
March 31, 2018
March 31, 2019

Yen

–
–

Yen

Fiscalyear-end

Yen

0.00
0.00

–
–

Total

Yen

Yen

3.50
3.70

Total annual
dividends

Dividend
payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Millions of yen

%

%

3.50
3.70

307
325

32.7
29.7

4.1
3.8

Fiscal year ending
March 31, 2020
–
–
–
3.90
3.90
27.7
(forecast)
Note: The total annual dividends include 8 million yen for the fiscal year ended March 31, 2018 and 1 million yen for the fiscal year
ended March 31, 2019, as the dividend on the Company’s shares held by Trust & Custody Services Bank, Ltd. (Trust AccountE) as trust assets of Stock Benefit Trust (Disposition-type Employee Stock Ownership Plan).

3.

Consolidated earnings forecasts for the fiscal year ending March 31, 2020
(From April 1, 2019 to March 31, 2020)
Net sales

Fiscal year ending
March 31, 2020

Operating profit

Millions of yen

32,000(Percentage figures indicate year-on-year changes)
Profit attributable toEarnings
Ordinary profit
owners of parent
per share%

Millions of yen

9.2

1,811

%

Millions of yen

18.3

2,300

%

Millions of yen

19.8

1,212

%

13.2

Yen

14.08

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change inscope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementi)
Changes in accounting policies due to revisions to accounting standards and other regulations:ii) Changes in accounting policies due to other reasons:iii) Changes in accounting estimates:iv) Restatement:

None
None
None
None

(3) Number of issued shares (common shares)i)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 201987,849,400 shares
As of March 31, 201887,849,400 sharesii) Number of treasury shares at the end of the period
As of March 31, 2019297,807 shares
As of March 31, 2018
2,315,806 sharesiii) Average number of shares outstanding during the period
Fiscal year ended March 31, 201986,097,870 sharesFiscal year ended March 31, 201885,117,525 shares
Note: The number of treasury shares deducted for the calculation of the number of treasury shares at the end of the period and theaverage number of shares outstanding during the period include the Company’s shares held by Trust & Custody Services Bank,
Ltd. (Trust Account E) as trust assets of Stock Benefit Trust (Disposition-type Employee Stock Ownership Plan).

Reference: Summary of non-consolidated financial results1.

Non-consolidated financial results for the fiscal year ended March 31, 2019
(From April 1, 2018 to March 31, 2019)(1) Non-consolidated operating results(Percentage figures indicate year-on-year changes)
Net sales
Fiscal year ended
March 31, 2019
March 31, 2018

Operating profit

Millions of yen

1,896
1,778

%

6.6
16.3

Earnings per share
Fiscal year ended
March 31, 2019
March 31, 2018

Ordinary profit

Millions of yen

616
411

%

49.6
(11.1)

Diluted earnings per share
Yen

5.67
5.10

Yen

–
–

Millions of yen

664
604

Profit%9.9(18.1)

Millions of yen

488
434

%

12.5
(28.4)

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2019
March 31, 2018
Reference: Equity

Millions of yen

19,923
17,970
As of March 31, 2019:
As of March 31, 2018:

Net assets

Equity ratio

Millions of yen

4,902
4,261

Net assets per share
%

24.6
23.7

Yen

56.00
49.82

4,902 million yen
4,261 million yen*Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
*Proper use of earnings forecasts, and other special notes The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable by theCompany. Actual business and other results may differ substantially due to various factors. For matters related
to the earnings forecasts, please refer to “1. Overview of Operating Results and Financial Position (4) Future
outlook” on page 5 of the attached materials.
 The Company plans to hold financial results presentation meetings for media members, institutional investors
and analysts on Friday, May 10, 2019, and for individual investors on Saturday, May 25, 2019. Presentationmaterials distributed at the meetings will be posted on the Company’s website immediately after the meetings.
For the meeting schedule and other information, please refer to the Company’s website.

Attached Materials

1. Overview of Operating Results and Financial Position ...................................................................................... 2(1) Overview of operating results for the fiscal year under review ...................................................................... 2(2) Overview of financial position for the fiscal year under review ..................................................................... 3(3) Overview of cash flows for the fiscal year under review................................................................................ 3(4) Future outlook ................................................................................................................................................. 5
2. Basic Rationale for Selection of Accounting Standards ...................................................................................... 5
3. Consolidated Financial Statements and Significant Notes Thereto..................................................................... 6(1) Consolidated balance sheets ........................................................................................................................... 6(2) Consolidated statements of income and consolidated statements of comprehensive income ......................... 8(3) Consolidated statements of changes in equity .............................................................................................. 10(4) Consolidated statements of cash flows ......................................................................................................... 12(5) Notes to the consolidated financial statements ............................................................................................. 14
Notes on going concern assumptions ............................................................................................................ 14
Additional information.................................................................................................................................. 14
Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting” and relevant
Guidances...................................................................................................................................................... 14
Segment information, etc. ............................................................................................................................. 14
Per-share information .................................................................................................................................... 15
Significant subsequent events ....................................................................................................................... 15- 1 -1. Overview of Operating Results and Financial Position(1) Overview of operating results for the fiscal year under review
In the fiscal year under review, the Japanese economy showed signs of moderate recovery on the back ofrobust corporate earnings and a solid employment situation. However, it remains in an uncertain situation
due to deterioration in the global economy as a result of the effect of intensifying US-China trade friction
and political turbulence in Europe and the United States.
As for the environment surrounding the child-raising service, demand for childcare is increasing in response
to women’s advancement and active participation in society, and the issue of the number of children waiting
for admission remains serious. The government has formulated various measures to improve childcare
facilities and secure nursery teachers in order to provide daycare for 320,000 children between fiscal 2018
and the end of March 2021. The government has also announced a policy aimed at realizing a system of freechild education/childcare to be implemented in October 2019. In response to this policy, the market is
expected to continue expanding, and the social role of our child-raising service is expected to become more
important.
Under these circumstances, the Group moved to a new management setup following the Ordinary General
Meeting of Shareholders held on June 28, 2018. The new management setup was established with theappointment of Outside Directors and Audit & Supervisory Board Members at the Extraordinary General
Meeting of Shareholders held on October 24, 2018. The governance system was strengthened andorganizational changes were made to improve management efficiency. Business structure reforms were
implemented and efforts were made to develop new business. In addition, the Group actively promoted theopening of licensed nursery schools and other facilities in response to growing needs for childcare.
During the fiscal year ended March 31, 2019, the Group opened the following new facilities, including 17
nursery schools and 4 school clubs, totaling 21 facilities.
Nursery schools:

Koto-ku Minamisuna No. 4 Nursery School
Asc Toneri Nursery School
Asc Higashi Kasai Nursery School
Asc Minami Kugahara Nursery School
Asc Yakuoji Nursery School
Asc Kaname-cho Nursery School
Asc Fuchu Honmachi Nursery School
Asc Minowa Nursery School
Asc Kugenuma Kita Nursery School
Asc Ohtaka-no-mori Nursery School
Asc Wani Nursery School
Asc Sone Minami Nursery School
Asc Toyotama 1-chome Nursery School A
Asc Toyotama 1-chome Nursery School B
GENKIDS Shinkoyasu Nursery School
Asc Akebono Kaiho Nursery School
Asc Noborikawa Nursery School(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Sept. 1, 2018)(Sept. 1, 2018)

School clubs:

Kojimachi Kids’ Club
Taisho Elementary School After School Kids’ Club
Chofu City Chowa Elementary School Club
Wakuwaku Takinogawa Momiji Hiroba(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)(Apr. 1, 2018)

As a result, the Group came to have 200 nursery schools, 72 school clubs, 11 children’s houses, 5 private
school clubs, and 1 kindergarten (overseas facility), making a total of 289 facilities for supporting childraising at the end of March 2019.
The Group withdrew from HokaGO→Club Onarimon (school club), which it had run since June 2008, andfrom Koto Kids Club Ichikame (school club), which it had run since April 2010, on the last day of March
2019, due to the expiration of the contract periods.
The Group closed AEL Yushima (private school club), which it had run since September 2016, on the last
day of March 2019.
Given the above, the Group’s consolidated net sales for the fiscal year under review were 29,298 million yen(up 9.4% year on year), operating profit was 1,531 million yen (up 17.5% year on year), ordinary profit was- 2 -1,920 million yen (up 21.4% year on year), and profit attributable to owners of parent was 1,071 million yen(up 17.7% year on year). Thus, both sales and profits increased year on year.
The major factors for this are as follows:
Net sales increased year on year, mainly due to the opening of new facilities, an increase in the number ofchildren accepted at existing facilities, and an increase in rent subsidies at some existing facilities.
Operating profit for the fiscal year under review increased year on year thanks mainly to the increased salesof existing facilities with the step-by-step increase in the number of children accepted from June 2018 onward,
even though operating profit was pushed down by the following factors: an increase in recruitment expenses
due to the strengthening of hiring nursery school teachers and expenses related to corporate dormitories
associated with an increase in their users, and the placement of nursery school teachers at each facility aheadof the timing of the acceptance of children at the beginning of the fiscal year.
Both ordinary profit and profit attributable to owners of parent increased year on year thanks to an increasein non-operating income, owing mainly to subsidies associated with an increase in users of corporate
dormitories, as well as an increase in operating profit. Additionally, a new record high was set for ordinary
profit.
(2) Overview of financial position for the fiscal year under review
As for the financial position at the end of the fiscal year under review, total assets amounted to 28,255 million
yen (up 2,496 million yen from the end of the previous fiscal year).
Current assets totaled 10,458 million yen (up 2,572 million yen from the end of the previous fiscal year),mainly reflecting increases of 2,360 million yen in cash and deposits and 322 million yen in accounts
receivable–other, and decreases of 80 million yen in other and 20 million yen in inventories.
Non-current assets totaled 17,796 million yen (down 76 million yen from the end of the previous fiscal year).
This was mainly due to increases of 122 million yen in long-term loans receivable, 79 million yen in other(investments and other assets), and 75 million yen in deferred tax assets, while there were decreases of 176
million yen in construction in progress, 100 million yen in other (intangible assets), and 81 million yen in
investment securities.
Total liabilities were 19,304 million yen (up 1,301 million yen from the end of the previous fiscal year).
Current liabilities totaled 7,880 million yen (down 328 million yen from the end of the previous fiscal year),mainly due to increases of 91 million yen in income taxes payable and 21 million yen in provision for bonuses,
while there were decreases of 319 million yen in current portion of long-term loans payable, 93 million yen
in other, and 31 million yen in notes and accounts payable–trade.
Non-current liabilities totaled 11,424 million yen (up 1,630 million yen from the end of the previous fiscal
year). This was mainly due to increases of 1,520 million yen in long-term loans payable, 103 million yen in
net defined benefit liability, and 78 million yen in asset retirement obligations, while there was a decrease of
67 million in other.
Total net assets at the end of the fiscal year under review were 8,950 million yen (up 1,194 million yen fromthe end of the previous fiscal year). This was mainly attributable to an increase of 763 million yen in retained
earnings, while there were decreases of 554 million yen in treasury shares, 86 million yen in valuationdifference on available-for-sale securities, and 22 million in remeasurements of defined benefit plans.
(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (hereinafter referred to as “the funds”) for the fiscal year under review were: 1,829
million yen from the funds provided by operating activities; 940 million yen from the funds used in investing
activities; and 1,475 million yen from the funds provided by financing activities, totaling 6,816 million yen,
up 2,360 million yen from the end of the previous fiscal year.
The cash flow situations and their reasons for the fiscal year under review were as follows:
Cash flows from operating activities
The funds provided by operating activities were 1,829 million yen (1,865 million yen provided in the previous
fiscal year).
This was due to the following: profit before income taxes (1,810 million yen); depreciation (703 million yen);
impairment loss (108 million yen); income taxes paid or refund (624 million yen); increase in accounts
receivable–other (297 million yen); and interest and dividend income (105 million yen).
- 3 -Compared to the previous fiscal year, the funds provided decreased by 36 million yen. This was due to thefact that, while profit before income taxes increased by 252 million yen and consumption taxes refund
receivable increased by 89 million yen, there were decreases in the following: accounts payable-other andaccrued expenses (462 million yen); accounts receivable–other (236 million yen); advances received (230
million yen); and income taxes paid or refund (226 million yen).
Cash flows from investing activities
The funds used in investing activities were 940 million yen (1,292 million yen used in the previous fiscal
year).
This was due to the following: proceeds from subsidy income (1,059 million yen); collection of long-termloans receivable (272 million yen); purchase of property, plant and equipment (1,877 million yen); paymentsof long-term loans receivable (360 million yen); and payments for guarantee deposits (71 million yen).
Compared to the previous fiscal year, the fund used decreased by 352 million yen. This was due to the fact
that, while proceeds from subsidy income increased by 233 million yen and collection of long-term loans
receivable increased by 53 million yen, payments for guarantee deposits decreased by 84 million yen.
Cash flows from financing activities
The funds provided by financing activities were 1,475 million yen (135 million yen used in the previous
fiscal year).
This was due to the following: proceeds from short-term loans payable (5,500 million yen); proceeds fromlong-term loans payable (4,000 million yen); proceeds from disposal of treasury shares (579 million yen);
repayments of short-term loans payable (5,500 million yen); repayments of long-term loans payable (2,799
million yen); and cash dividends paid (305 million yen).
Compared to the previous fiscal year, the funds increased by 1,611 million yen. This was due to the fact that,while repayments of short-term loans payable increased by 4,900 million yen, proceeds from short-term loans
payable increased by 3,400 million yen, proceeds from long-term loans payable increased by 2,150 million
yen, and proceeds from disposal of treasury shares increased by 310 million yen, repayments of long-termloans payable decreased by 737 million yen.
The cash flow indicators of the Group are as follows:Year ended
March 31, 2017

Year ended
March 31, 2018Year ended
March 31, 2019

Equity ratio (%)

28.5

30.1

31.7

Market value equity ratio (%)

98.8

102.6

94.2

Interest-bearing debt to cash flows ratio (years)

7.0

6.9

7.7

Interest coverage ratio (x)
36.5
37.3
33.3
Notes: Equity ratio: equity / total assets
Market value equity ratio: market capitalization / total assets
Interest-bearing debt to cash flows ratio: interest-bearing debt / cash flow
Interest coverage ratio: cash flow / interest payments*1. All of the figures in the table were calculated on a consolidated basis.
*2. Market capitalization was calculated based on the total number of issued shares minus treasury shares.
*3. The figure used for cash flow is “net cash provided by (used in) operating activities.”*4. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheet on which interest is paid.

- 4 -(4) Future outlook
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable by theCompany. These statements do not purport that the Company pledges to realize such statements.
The breakdown of the child-raising facilities that the Group was commissioned to establish during the fiscal
year ended March 2019 and those that started operation on April 1, 2019 are as follows:
Nursery schools:

Koto-ku Ojima No. 5 Nursery School
Shinjuku-ku Nursery Room Edogawa Nursery School
Asc Ogi Nursery School
Asc Yukigaya Nursery School
Asc Kitashinjuku Nursery School
Asc Kamitakaido Nursery School
Asc Midori Nursery School
Asc Hoya Nursery School
Asc Fuchukatamachi Nursery School
Asc Otsukyo Nursery School(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)(Apr. 1, 2019)

School clubs:

Wakuwaku Akanishi Hiroba /Akabanedai-nishi Elementary School Club No. 2
Wakuwaku Fukuro Hiroba /Akakita Hibari Club No. 2(Apr. 1, 2019)(Apr. 1, 2019)

With the establishment of the above Wakuwaku Fukuro Hiroba /Akakita Hibari Club No. 2, the Akakita
Hibari Club and the Kita City Fukuro Cultivation Room are operating as the Wakuwaku Fukuro Hiroba/Akakita Hibari Club No. 1 and the Wakuwaku Fukuro Hiroba /Akakita Hibari Club No. 3, respectively, as
of April 1, 2019.
Separate from the above, the following changes have been made as of April 1, 2019: Asc Ikegami Nursery
School, which had been running since February 1, 2008 as an existing Tokyo Licensed Nursery School waschanged into a licensed nursery school; Asc Toyotama 1-chome Nursery School A and B, which had beenrunning since April 1, 2018, as small-scale childcare facilities, were integrated and changed into a licensed
nursery school; and Kawasaki City Miyamaedaira Nursery School, which had been running as a public
facility under private management since April 1, 2009, was changed to a private facility under private
management and is now run as Asc Miyamaedaira Nursery School.
With respect to the Group’s outlook for business performance in the next fiscal year, as indicated in the“Notice of Formulation of ‘Long-term Management Vision 2025’ and ‘Medium-term Management Plan,’”which was announced on August 8, 2018, the Group will establish a variety of systems to secure nurseryteachers, with the aim of further enhancing the quality of its childcare services and increasing the number ofchildren accepted at facilities. At the same time, we will strive to develop and promote new businesses witha view to expanding our earnings base.
As a result, our forecast of business performance in the next fiscal year is: net sales of 32,000 million yen(up 9.2% year on year), operating profit of 1,811 million yen (up 18.3% year on year), ordinary profit of
2,300 million yen (up 19.8% year on year), and profit attributable to owners of parent of 1,212 million yen(up 13.2% year on year).

2. Basic Rationale for Selection of Accounting Standards
Taking into consideration the comparability between financial statements over different accounting periods andof different companies, the Group prepares its consolidated financial statements in accordance with Japanese
accounting standards. With respect to adoption of international financial reporting standards, the Group follows
a policy of responding in a suitable manner after giving consideration to various circumstances in Japan andoverseas.

- 5 -3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheets(Thousands of yen)Previous fiscal year
(As of March 31, 2018)

Current fiscal year
(As of March 31, 2019)

4,455,750
81,250149,105
2,169,850
1,030,385(730)

6,816,439
71,657
128,900
2,491,947
949,963(449)

7,885,613

10,458,459

11,278,553(4,015,971)

11,873,447(4,635,599)

7,262,582

7,237,848

5,868(2,398)

5,637(3,209)

3,470

2,427

711,365(470,331)

803,177(563,703)

241,033

239,473Land
Construction in progress

980,894
1,613,898

980,894
1,437,264

Total property, plant and equipment

10,101,879

9,897,908

258,280
215,489

227,894
114,985

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
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

Intangible assets
Goodwill
Other

473,769

342,879

Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts

629,505
3,297,662
1,823,521
750,305
812,703(16,063)

548,080
3,419,910
1,880,239
825,742891,902(10,027)

Total investments and other assets

7,297,635

7,555,848

17,873,284

17,796,637

25,758,898

28,255,096

Total intangible assets

Total non-current assets
Total assets- 6 -(Thousands of yen)

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
Provision for bonuses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Long-term accounts payable - other
Asset retirement obligations
Other

Previous fiscal year
(As of March 31, 2018)

Current fiscal year
(As of March 31, 2019)

228,9171,500,000
2,485,320
1,584,376
344,278
78,373390,055–
1,597,673

197,7421,500,000
2,166,092
1,570,333
435,953
81,136411,135
13,5001,504,249

8,208,995

7,880,143

8,934,213
538,8853,700
238,624
78,28010,454,371
642,495–
317,269
10,324

9,793,703

11,424,460

Total liabilities

18,002,699

19,304,604

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

1,603,955
1,449,544
5,421,026(636,635)

1,603,955
1,449,544
6,184,830(81,685)

Total non-current liabilities

7,837,890

9,156,643

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 shareholders’ equity(46,654)545
3,899(43,350)(133,411)(7,165)238(65,813)

Total accumulated other comprehensive income(85,560)(206,151)

3,869

–

Non-controlling interests
Total net assets
Total liabilities and net assets- 7 -7,756,199

8,950,492

25,758,898

28,255,096

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
Previous fiscal year
(April 1, 2017 –March 31, 2018)(Thousands of yen)
Current fiscal year
(April 1, 2018 –March 31, 2019)

Net sales
Cost of sales

26,779,234
22,685,186

29,298,670
25,119,787

Gross profit

4,094,048

4,178,883

Selling, general and administrative expenses

2,790,933

2,647,588

Operating profit

1,303,115

1,531,294

Non-operating income
Interest income
Guarantee commission received
Subsidy income
Other

110,730
65,608166,397
27,182

105,359
65,608349,325
39,778

Total non-operating income

369,918560,072

52,2292,000
6,200
25,587–
5,013

56,52455,2528,150–
34,886
15,793Non-operating expenses
Interest expenses
Commission fee
Levy for employing disabled persons
Share of loss of entities accounted for using equity method
Dismantling and removing costs
Other
Total non-operating expenses

91,030170,606

1,582,003

1,920,760

3,834

–

3,834

–

–
3,310
23,137–
1,404
27,85177
2,240
83,782
24,590–110,690

Profit before income taxes

1,557,986

1,810,070

Income taxes - current
Income taxes - deferred

636,856
10,738760,950(22,086)

Total income taxes

647,595

738,864

Profit910,390

1,071,206

Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss of long-lived asset of facilities
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses

Loss attributable to non-controlling interests
Profit attributable to owners of parent

- 8 -

(116)

(64)

910,507

1,071,270

Consolidated statements of comprehensive income
Previous fiscal year
(April 1, 2017 –March 31, 2018)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income(Thousands of yen)
Current fiscal year
(April 1, 2018 –March 31, 2019)

910,390

1,071,206(12,057)
(307)
3,899
(13,770)(86,757)(7,710)(3,660)(22,462)(22,236)(120,590)

Comprehensive income

888,154

950,615

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

888,271(116)

950,679
(64)

- 9 -

(3) Consolidated statements of changes in equity
Previous fiscal year (April 1, 2017 – March 31, 2018)(Thousands of yen)
Shareholders’ equity

Balance at beginningof current period

Capital stock

Capital surplus

1,603,955

1,449,544

Retainedearnings

Treasury shares

Total
shareholders’equity(869,918)

6,913,719

4,730,138

Changes of items
during period
Dividends of surplus(219,619)(219,619)

Profit attributable toowners of parent

910,507910,507

Purchase of treasury
shares––

Disposal of treasury
shares

233,282

233,282

Net changes of
items other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period––

690,888

233,282

924,170

1,603,955

1,449,544

5,421,026(636,635)

7,837,890

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginningof current period(34,596)

Total
Deferred gains Foreign currency Remeasureaccumulated Non-controlling Total net assetsinterests
or losses ontranslation
ments of definedotherhedgesadjustment
benefit planscomprehensive
income852–(29,580)(63,324)

3,985

6,854,381

Changes of items
during period
Dividends of surplus(219,619)

Profit attributable toowners of parent

910,507

Purchase of treasury
shares–

Disposal of treasury
shares

233,282

Net changes of
items other thanshareholders’ equity(12,057)

(307)

3,899

(13,770)(22,236)(116)(22,352)

Total changes of items
during period(12,057)

(307)

3,899

(13,770)(22,236)(116)

901,817

Balance at end ofcurrent period(46,654)

545

3,899

(43,350)(85,560)

3,869

7,756,199- 10 -

Current fiscal year (April 1, 2018 – March 31, 2019)(Thousands of yen)
Shareholders’ equity

Balance at beginningof current period

Capital stock

Capital surplus

1,603,955

1,449,544

Retainedearnings

Treasury shares

Total
shareholders’equity(636,635)

7,837,890

5,421,026

Changes of items
during period
Dividends of surplus(307,466)(307,466)

Profit attributable toowners of parent

1,071,270

1,071,270

Purchase of treasury
shares(0)(0)

Disposal of treasury
shares554,950

554,950

Net changes of
items other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period––

763,803554,949

1,318,753

1,603,955

1,449,544

6,184,830(81,685)

9,156,643

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginningof current period(46,654)

Total
Deferred gains Foreign currency Remeasureaccumulated Non-controlling Total net assetsinterests
or losses ontranslation
ments of definedotherhedgesadjustment
benefit planscomprehensive
income545

3,899(43,350)(85,560)

3,869

7,756,199

Changes of items
during period
Dividends of surplus(307,466)

Profit attributable toowners of parent

1,071,270

Purchase of treasury
shares(0)

Disposal of treasury
shares554,950

Net changes of
items other thanshareholders’ equity(86,757)(7,710)(3,660)(22,462)(120,590)(3,869)(124,460)

Total changes of items
during period(86,757)(7,710)(3,660)(22,462)(120,590)(3,869)1,194,293

Balance at end ofcurrent period(133,411)(7,165)238(65,813)(206,151)–

8,950,492- 11 -

(4) Consolidated statements of cash flows(Thousands of yen)Previous fiscal year
(April 1, 2017 –March 31, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Impairment loss
Loss (gain) on valuation of investment securities
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) 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 non-current assets
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities

Current fiscal year
(April 1, 2018 –March 31, 2019)

1,557,986
668,678
30,385(2,547)(8,783)46,327–(3,834)
3,310
23,137
1,404(110,730)
52,2291,810,070
703,991
30,385(6,317)21,07981,14877–
2,240
108,372–(105,359)
56,52425,587–(30,697)(40,403)(533,499)(49,771)
13,942

9,592
20,088(297,160)(1,747)(31,174)

447,272(14,756)(86,900)
228,682(79,260)
7,647
128,278
2,460

2,762
(1,633)80,464(16,186)
10,881
28,246

Subtotal

2,290,904

2,491,590

Interest and dividend income received
Interest expenses paid
Income taxes (paid) refund

22,444(49,976)(397,549)

17,123(54,894)(624,316)

Net cash provided by (used in) operating activities

1,865,822

1,829,502- 12 -

(Thousands of yen)Previous fiscal year
(April 1, 2017 –March 31, 2018)
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of property, plant and equipment
Proceeds from subsidy income
Proceeds from sales and redemption 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
Payments for sales of shares of subsidiaries resulting in change
in scope of consolidation
Other
Net cash provided by (used in) investing activities
Cash flows from 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
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

Current fiscal year
(April 1, 2018 –March 31, 2019)(1,853,760)(17,006)–
825,603
27,247(21,395)(156,014)
26,094(333,869)
218,696(1,877,501)(3,959)231
1,059,222––(71,870)
14,188(360,540)
272,223–(3,804)(8,437)31,711(1,292,842)(940,099)

2,100,000(600,000)
1,850,000(3,536,308)(218,213)
268,892–

5,500,000(5,500,000)
4,000,000(2,799,068)(305,348)
579,791(0)(135,629)

1,475,374

808(4,088)Net increase (decrease) in cash and cash equivalents

438,159

2,360,688

Cash and cash equivalents at beginning of period

4,017,591

4,455,750

Cash and cash equivalents at end of period

4,455,750

6,816,439- 13 -

(5) Notes to the consolidated financial statements
Notes on going concern assumptions
No items to report.
Additional information
Transactions regarding the stock benefit trust (disposition-type employee stock ownership disposal type)
Current fiscal year (April 1, 2018 – March 31, 2019)
The Company has introduced a Stock Benefit Trust (Distribution-type Employee Stock Ownership Plan,
hereinafter referred to as the “Plan”) with the aim of enhancing employee benefits and providing incentives
for employees to increase the corporate value of the Company(1) Overview of transaction
This system is an incentive plan to return the stock appreciation merits of the Company to all employees who
are members of the “JP Employees Stock Ownership” (hereinafter referred to as “the stock ownership”).

Under this system, the Company has entered into a stock distribution trust contract (employee stock
ownership distribution type) (hereinafter referred to as “the trust contract”) with the Company as thetrustor and Mizuho Trust & Banking Co., Ltd. as the trustee. The trust set up in accordance with thetrust contract is referred to as “the trust.” Additionally, Mizuho Trust & Banking Co., Ltd. has enteredinto a re-trust contract with Trust & Custody Services Bank, Ltd. under which Trust & Custody Services
Bank, Ltd. (Trust E Account) (hereinafter referred to as “Trust E Bank”) manages trust assets such as
securities as the re-trustee.
In the future, Trust E Bank will obtain in bulk, in advance, the shares of the Company that are to beacquired by the stock ownership and sell them to the stock ownership when it acquires shares. By thetime of termination of the trust, if an amount corresponding to the profit from sales of shares has
accumulated in the trust’s assets through the sale of shares by Trust E Bank to the stock ownership, thiswill be distributed as residuary assets to the members of the stock ownership who fulfill the beneficiary
qualifications. Moreover, since the Company guarantees the trust banks’ borrowings to obtain shares of
the Company, should there be a residuary liability corresponding to a loss on sales of shares due to thereasons such as a drop in the Company’s stock price at the termination of the trust, the Company willcompensate for the liability in accordance with the guarantee contract.
(2) The Company’s shares remaining in trust
The Company’s shares remaining in trust is recorded as treasury shares in net assets at the book value
in trust (excluding incidental expenses). The book value and number of shares of the relevant treasury
shares are 636,377 thousand yen and 2,314,100 shares as of March 31, 2018, and 81,427 thousand yen
and 296,100 shares as of March 31, 2019.
(3) Book value of loans payable recorded using the gross method
As of March 31, 2018:
As of March 31, 2019:

640,400 thousand yen
351,652 thousand yen

Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting” and relevant
Guidances
The Company has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28, February 16, 2018) and relevant Guidances effective from the beginning of the firstquarter of the fiscal year under review (April 1, 2018 – March 31, 2019). Accordingly, deferred tax assets
were presented under “Investments and other assets” and deferred tax liabilities were presented under “Noncurrent liabilities.”
Segment information, etc.
As the Group consists of a single operating segment, nursery service, this information is omitted.

- 14 -

Per-share information
Previous fiscal year
(April 1, 2017 –March 31, 2018)

Current fiscal year
(April 1, 2018 –March 31, 2019)

Net assets per share

90.63 yen102.23 yen

Earnings per share

10.70 yen

12.44 yen

Notes:

1.
2.

3.

Diluted earnings per share is not presented because there are no potential shares.
The Company’s shares remaining in trust and recorded as treasury shares under shareholders’ equity are includedin the treasury shares that are deducted in calculating the average number of shares outstanding during the period
for measuring earnings per share, and are included in the number of treasury shares that are deducted from thetotal number of issued shares at the end of the period in calculating net assets per share.
The average number of treasury shares during the period that are deducted in calculating the earnings per sharefor the previous fiscal year was 2,730,169, and for the fiscal year under review was 1,749,823. The number oftreasury shares at the end of the period that are deducted in calculating net assets per share for the previous fiscal
year was 2,314,100, and for the fiscal year under review was 296,100.
The basis for calculating earnings per share is as follows:
Previous fiscal year
(April 1, 2017 –March 31, 2018)

Current fiscal year
(April 1, 2018 –March 31, 2019)

Profit attributable to owners of parent (thousandyen)

910,507

1,071,270

Profit not attributable to common shareholders(thousand yen)––

910,507

1,071,270

85,117,525

86,097,870

Profit attributable to owners of parent pertaining tocommon shares (thousand yen)
Average number of common shares (shares)

Significant subsequent events
No items to report.

- 15 -