Prime Market（2749）
https://www.jp-holdings.co.jp/

JP-HOLDINGS, INC.

Financial Results for the 2Q of Fiscal Year ending March 2023

FY3/23
Second Quarter

INDEX

1

FY3/23 Q2 Results2Long-Term Management Vision/
Medium-term Management Plan
Priority Measures for the Third Quarterof FY3/23 and Beyond

3
4Appendix© 2022 JP-HOLDINGS, INC.

2

Every activity is for children’s smiles

Leading company in the child-raising support business
JP Holdings Group is a leading company in the child-raising support business, and operates
childcare support facilities, including nursery schools, school clubs, and children’s houses.
JP Holdings Group was founded in 1993, and started childcare business by establishing a day-care center for childrenof our employees so that they can work without worry. As joint-stock corporations were allowed to do nursery businessin 2000, we first spread safe, reliable childcare services nationwide, while being supported by various people.
Group companies include Japan Nursery Service Inc., J Kitchen Inc., which cooks meals for nursery schools, J Cast Inc., which offers
classes in English, gymnastics, and eurhythmics for childcare support facilities and supports development for childcare, J Planning Sale
Inc., which plans and sells childcare-related goods, and Japan Nursery Institute for General Research Inc., which conducts training andresearch about childcare and support for development and support business by visiting nursery schools, and operates the childcare
platform “codomel.” These subsidiaries are managed and supervised by JP Holdings, Inc.
3

Outline of theBusiness of
JP-Holdings

Outline of the Business of JP-Holdings

We operate the childcare support
business in an integrated manner.

Operation of nursery schools, school clubs,
and children’s houses
Operating 307 facilities around Japan

JP-Holdings
Business administration/development(new and existing businesses)
Japan Nursery Service
Operation of nurseryschools, school clubs,
and children’s houses

Group purchase
Sale of childcare goods
Development of groupfacilities

JP-Holdings

J Planning Sale
Sale of childcare
goods

Development and operation of earlychildhood learning programs
English, exercise, eurhythmics, danceSupport for development

Childcare support business taking fulladvantage of synergy among groupcompanies

J CastDevelopmentof programsfor children

J Kitchen
Cooking oflunches andadvisory

Japan Nursery Institutefor General ResearchTraining
andresearch

Cooking of lunches(Our company andother companies)
Advisory

Training business
BPO service
Support business by visiting
nursery schools
Platform business
Overseas business※J Cast Inc. and J Planning Sale Inc. will be merged into Japan Nursery Institute for General Research Inc. on January 1, 2023.
© 2022 JP-HOLDINGS, INC.

4

Our Management
Philosophy andCorporate Message

Our Management Philosophy and Corporate Message●To renew our management philosophy and operational philosophy, and produce a new corporate message●Under the new philosophies, we will improve our child-raising support business based on the cooperation
with local communities.

JP HoldingsGroup’s System
Management philosophy

Corporate message

Operational philosophy
Childcare philosophy andchild-raising philosophy

To contribute to the development of a society filled withsmiles through childcare support
Every activity is for children’s smiles
To conduct childcare and child-rearing while giving top priority
to safety and reliability
To put importance on daily childcare, so that our facilities will be
remembered foreverTo bring a smile to each child, while our staff can enjoy their jobs
To contribute to society by operating facilities that are connected
to and support local communities
To always offer child-raising support demanded by the times

Childcarephilosophy
To nurture the skills to survive tomorrow

Child-rearing
philosophy
To develop the ability to become an ideal self
© 2022 JP-HOLDINGS, INC.

5

1

FY3/23 Q2 Results

6FY3/23
Second Quarter

Changes in Environment during the First Half of FY3/23

Competition is intensifying in each region, so it is important to “develop nursery schools andfacilities that would be selected by customers.”

Economic
environment

Accelerated inflation around the world➡Increases in corporate goods price index and consumer price index inJapanImpact of geopolitical risks and accelerated yen depreciation➡Further price hikes➡Soaring oil and raw material prices
Impact of the lingering COVID-19 Pandemic➡Uncertainty in the economic environment➡Easing of regulations (business hours, overseas immigration)

Industry
trendsDecrease in birth rate
➡The number of births in the period from January to June fell below 400,000 for the
first time, and the number of births this year is projected to fall below 800,000.
Number of children desired by unmarried women: Below 2 for the first time➡Current situation where it is difficult to be positive about childbirth and child-rearingNumber of children on waiting lists: Smallest in history➡2,944 children on waiting lists, down to 1/9 of the number five years ago
Shortage of labor has become more serious due to the impact of COVID-19.
➡50% of companies are short of full-time employees.
Establishment of the “Agency for Children” in April 2023
➡Measures to cope with the declining birthrate, achieve various improvements intreatment, and care for children with developmental concerns➡Corrective measures by local governments© 2022 JP-HOLDINGS, INC.

7

FY3/23 Forecast

Upward Revision of FY3/23 Forecast

Upwardly revised due to cost reductions, streamlined business operation and improved asset efficiency

Net salesTo increase digital support, regional cooperation, and early childhood learning programs as
part of “development of nursery schools and facilities that would be selected by customers”
Expected to exceed the initial forecast owing to the success of various measures implemented in eachregion.

Operating andordinary incomesTo streamline business operation via reshuffling of personnel, and review the ordering system andoperations to curb price hikes
Initial forecasts were revised upwardly due to cost reductions and streamlined business operation.

Net income
attributable toowners of parent

Sold fixed assets (land and buildings) of each facility owned, for the improvement of asset efficiency.
Initial forecasts were revised upwardly due to the expected extraordinary gains from the sale of fixed
assets (land and buildings).

Unit: million yen

Net sales

Operating income Ordinary income

Net income
attributable toowners of parent

Net income per
share

Previous forecast (A)35,640

3,560

3,580

2,325

26.58 yen

Revised forecast (B)35,640

3,633

3,711

2,566

29.64 yen

Change (B-A)

0

73

131

241

-

Percentage change

0%

2.1%

3.7%

10.4%

-

34,373

3,344

3,358

2,279

26.6 yen

Results in theprevious term
(FY3/22)(Unit: million yen/Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

8

FY3/23
Acquisition ofTreasury Stock

Acquisition of Treasury Stock

As a measure to return profits to shareholders to improve capital efficiency, we will conduct it swiftly while
taking into account changes in market and industry conditions, including performance and capital conditions,
opportunities for investment in growth, and stock prices.
Details of treasury stock acquisition(1) Type of shares to be repurchased

Common stock of our company(2) Total number of shares to be
repurchased

2,635,500 shares (maximum)(Ratio to the number of outstanding shares (excluding treasury stock):
3.01%)(3) Total amount payable for shares to be
repurchased

711,585,000 yen (maximum)(4) Repurchase period

From October 7, 2022 to January 31, 2023

(5) Acquisition method

Market purchase based on a discretionary transaction agreement

Status of share repurchases as of theend of October(1) Type of shares repurchased

Common stock of our company(2) Total number of shares repurchased

962,800 shares(3) Total amount paid for repurchased
shares292,225,900 yen(4) Repurchase period

From October 7, 2022 to October 31, 2022 (contract basis)(5) Acquisition method

Market purchase based on a discretionary transaction agreement© 2022 JP-HOLDINGS, INC.

9

FY3/23
Second Quarter
Results

Summary of Business Results for the Second Quarter of FY3/23

Increased sales and profit from the previous fiscal year thanks to an increase in the number of children
accepted and streamlined business operation
Net sales: Increased due to the opening and undertaking of operation of new facilities and the increase in the number of children
accepted at existing facilities as a result of the successful implementation of measures to “develop nursery schools and facilities that would
be selected by customers” with a focus on the digital technology.
Operating and ordinary incomes: Improved significantly from the previous fiscal year due to factors such as sales increase from theopening and undertaking of operation of new facilities and the increase in the number of children accepted at existing facilities, streamlined
business operation via reshuffling of personnel at each facility, and improved profitability following a review of the ordering system to curb
price hikes, despite the special expenses in the previous term.
Net income*1: In addition to the above-mentioned increase in ordinary income, extraordinary income was recorded from the sale of fixed
assets (land and buildings) owned by our company to improve asset efficiency, resulting in a significant increase in net income from theprevious period.

Unit: million yen

FY3/22 Q2 Results

FY3/23 Q2 Results

Rate of Change
Compared to thePrevious Term

Change Compared to
the Previous Term

Rate of Achievement of
Forecast after Upward
Revision

Upwardly Revised
Forecast

Net sales

16,814

17,207

392

2.3%

48.3%

35,640Operating income

1,095

1,502

407

37.2%

41.4%

3,633

Operating income margin

6.5%

8.7%

-

2.2%

Ordinary income

1,111

1,521

410

36.9%

Ordinary income margin

6.6%

8.8%

-

2.2%

Net income attributable to owners ofparent

708

1,130

421

59.5%

Net income margin attributable toowners of parent

4.2%

6.6%

-

2.4%

-

Net income per share (yen)

8.11

12.92

-

4.82

-

*1: Net income represents “Net income attributable to owners of parent.”

-

10.2%

41.0%
-

3,711
10.4%

44.0%

2,566

7.2%

(Unit: million yen/Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

10

FY3/23
Second Quarter
Results

FY3/23 Q2 Factors for Changes in Net Sales

Net sales

Sales grew, as new facilities were opened and the number of children accepted increased at existing facilities
during the term thanks to the efforts to “develop nursery schools and facilities that would be selected bycustomers,” including the digital tours of facilities, online programs regarding English, exercise, eurhythmics,
dance, etc. amid the coronavirus pandemic, and the adoption of new programs for early childhood learning.

291

16,814

-143

259
-41

Decreasedue to theclosure offacilities

Net
sales

Results for
FY3/22 Q2Decrease inextended day
care, etc.

Increase insubsidies
Establishmentof new facilities,
and increase in
the number ofchildren
accepted atexisting
facilities

27

17,207

Increase incompany
housing
subsidies

Net
sales

Results for
FY3/23 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

11

FY3/23
Second Quarter
Results

FY3/23 Q2 Factors for Changes in Operating Income

OperatingincomeImproved significantly from the previous fiscal year due to factors such as sales increase from the opening of
new facilities and the increase in the number of children accepted at existing facilities, streamlined business
operation via reshuffling of personnel at each facility, and a review of the ordering system to cope with pricehikes of supplies, despite the special expenses in the previous term.

-165
241

1,095

OperatingincomeResults for
FY3/22 Q2Gross profit
Sales growth through the
opening of new facilities and theincrease in the number ofchildren accepted, reshuffling of
personnel, and curtailment ofcosts following a review of theordering system to cope withprice hikes of supplies

1,502

SG&A
Decrease in SG&A
expenses due toefficient operating
structure and cost
control

OperatingincomeResults for
FY3/23 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

12

FY3/23
Second Quarter
Results

FY3/23 Q2 Factors for Changes in Ordinary Income

Ordinary
incomeOrdinary income grew considerably thanks to efficient operation, curtailment of expenses, andthe sales growth through the opening of new facilities and the increase in the number of children
accepted, which were achieved by measures, mainly online programs, despite the increase in
expenses due to special factors in the previous term.

407

1,111

Ordinary
incomeResults for
FY3/22 Q2OperatingincomeGrowth ofoperating income
thanks to thecurtailment ofcosts as well as thesales growththrough the
opening of new
facilities and somemeasures6

3

Increase in nonoperating income

Increase in nonoperating expenses

1,521

Ordinary
incomeResults for
FY3/23 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

13

FY3/23
Second Quarter
Results

FY3/23 Q2 Factors for Changes in Net Income

Net income
attributable toowners of parent

Along with the growth in sales, cost control was achieved due to the realization of a
streamlined business operation, and despite an increase in expenses due to special factors in
the previous fiscal year, a significant increase in ordinary income and the sale of fixed assetsthat would improve asset efficiency led to a significant increase in net income.

215

Increase in
extraordinary
loss

410
Ordinary
income708
Net income
attributable toowners ofparentResults for
FY3/22 Q2

Increase inordinary income2

Increase in
extraordinary
income (sale of
fixed assets)

207

1,130
Augmentation ofincome taxes

Net income
attributable toowners ofparentResults for
FY3/23 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

14

FY3/23
Second Quarter
Results

FY3/23 Q2 Factors for Changes in Balance Sheet

Increase in shareholders equity ratio due to higher earnings and repayment long-term loans-payable

Financial condition

Liabilities, Net Assets, Shareholders Equity Ratio

End of September 2022 *( ) = Difference with the end of March 2022

Liabilities

Net assets－－ Equity Ratio (%)

Liabilities

Assets33,158 million yen(-1,116 million yen)

20,478 million yen(-1,821 million yen)

Net assets
12,680 million yen(+704 million yen)

End of Mar. 2022

End of Sep. 2022

Current assets

20,931

20,372

Fixed assets

13,343

12,785

Total assets

34,27433,158Current liabilities

7,891

7,492

Fixed liabilities

14,407

12,986

Total liabilities

22,29920,478

Total net assets

11,975

12,680Million yen

22,299 million yen

20,478 million yen
38.2

34.9

11,975 million yen

12,680 million yen

End of Mar. 2022

End of Sep. 2022

Cash and deposits
Inventory assets
Accounts receivable-other
Buildings and structures

16,974 million yen
39 million yen
2,425 million yen
12,246 million yen

Current portion of long-term loans-payable
Accounts payable
Income taxes payable
Long-term loans payable

2,982 million yen
1,376 million yen
512 million yen
11,377 million yen

Retained earnings
Accumulated other comprehensive income

9,854million yen-123 million yen(Figures are rounded down to the nearest million yen, and the equity ratio is rounded off to the nearest first decimal point place.)© 2022 JP-HOLDINGS, INC.

15

FY3/23
Second Quarter
Results

FY3/23 Q2 Balance Sheet
End of Mar. 2022
(million yen)

Total current assets

End of Sep. 2022
(million yen)

Change(million yen)

20,931

20,372-558(Cash and deposits)

17,296

16,974-321(Accounts receivable-other)

2,708

2,425

-283

13,343

12,785-557(Total tangible fixed assets)

5,734

5,385

-349

(Total intangible fixed assets)

174

164

-10

7,434

7,235

-198

Total assets

34,27433,158-1,116

Total current liabilities

7,891

7,492

-399

(Current portion of long-term loans-payable)

3,113

2,982

-130

(Accounts payable)

1,561

1,376

-185

14,407

12,986-1,421

12,816

11,377-1,439Total liabilities

22,29920,478-1,821

Total net assets

11,975

12,680704

Total liabilities and net assets

34,27433,158-1,116

Total fixed assets(Total investments and other assets)

Total fixed liabilities(Long-term loans-payable)(Rounded down to the nearest million yen. The equity ratio is rounded to the first decimal place.)© 2022 JP-HOLDINGS, INC.

16

FY3/23
Second Quarter
Results

FY3/23 Q2 Statement of Cash Flows

Operating CF: Increase in income before income taxes and sale of property, plant and equipment
Investing CF: Sale of property, plant and equipment and acquisition of fixed assets for new opening
Financing CF: Repayment of long-term loans-payable and dividend payment

Unit: million yen

FY3/23 Q2ChangeFY3/22 Q2Cash flows fromoperating activities

1,588

1,410

-177

Cash flows frominvesting activities

287

227

-59

Free cash flow

1,875

1,637

-237

Cash flows fromfinancing activities

2,994-1,9594,954(Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

17

FY3/23
Second Quarter
Results

New Openings For FY3/23

No. of New Openings
on April 1, 2022
Nursery Schools: 2
School Clubs: 11
on June 1, 2022
School Clubs: 1

No. of Facilities Operated as of the
End of June 2022
Nursery Schools: 209
School Clubs: 89Children’s houses: 10
Total: 308

Total: 14
1: “Mitaka City Part-time Childcare Center Hinata” began
operation on May 1, 2022.
2: As of March 31, 2022, the Company closed Tokyo
Licensed Nursery Schools named Asc Itabashi-honcho
Nursery School, Asc Shiodome Nursery School, Asc
Takadanobaba Nursery School, Asc Yanokuchi Nursery
School.
In addition, due to the expiration of the contract, the Company
withdrew from school clubs named Rinsen Elementary School
After School Club, Hiroo Elementary School After School Club,
Sarugaku Elementary School After School Club, and achildren's house named Fukuro Children's House on March
31, 2022.

Tokyo:
1 licensed nursery school・Asc Musashi-Koganei Minamiguchi Nursery School
1 non-licensed nursery school・ Mitaka City Flexible Childcare Center Hinata

Tokyo:
2 school clubs and children’s houses
・Takenotsuka School Club・Takaban Elementary School Club・ Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 1
・ Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 2・ Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 3・ Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 1
・ Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 2・ Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 3・ Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 1
・ Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 2・ Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 3© 2022 JP-HOLDINGS, INC.

18

No. of Facilities
Operated
asOperatedof the Endas
ofof
June
No. ofFacilities
the2022End of September 2022
No. of Facilities
Operated
byOperated
Region by Region
No. ofFacilities

FY3/23
Second Quarter
Results

Operate 308 facilities as of the End of September 2022

TohokuHokkaido

Licensed nurseryschools: 11

Kanto

Kinki

Licensed nurseryschools: 9
KyushuOkinawa

Licensed nurseryschools: 5
Company-led
nursery school: 1

Licensed nurseryschools: 3

Chubu

Licensed nurseryschools: 9
School clubs: 3
Children’s houses: 6

Licensed nursery schools: 157
Non-licensed nursery schools: 9
Other non-licensed nursery schools: 5
School clubs: 86Children’s houses: 4

209 nursery schools, 89 school clubs, 10 children’s houses© 2022 JP-HOLDINGS, INC.

19

FY3/23 Forecast20

FY3/23 Forecast

FY3/23 Forecast

Upward revision of the previous earnings forecasts
Unit: million yen

Initial full-year
forecast for
FY3/23Results for
FY3/22

Revised full-year
forecast for
FY3/23Compared to FY3/22

Compared to initial
forecast

ChangeChange% change% change

34,37335,64035,640

1,266

3.7%

0

0%

Operating income

3,344

3,560

3,633

288

8.6%

73

2.1%

Ordinary income

3,358

3,580

3,711

352

10.5%

131

3.7%

Net income attributable toowners of parent

2,279

2,325

2,566

286

12.6%

241

10.4%

Net income per share (yen)

26.06

26.58

29.64

3.58

-

3.06

-

4.5

6.0

6.0

2.5

-

-

-

Expected opening of nurseryschool (school)

3

2

2

-1

-

-

-

Expected consignment ofschool clubs and children’shouses (facility)

8

11

11

+3

-

-

-

Net sales

Dividend per share (yen)(Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

21

FY3/23 Dividend
Forecast

Dividend forecast for FY 3/23

⦿ Dividend policy

・Regarding profit sharing, our company pays dividends while securing internal reserve required for
future business and fortification of our management structure.
・For FY 3/23, we plan to pay an ordinary dividend of 5.0 yen/share and a commemorative dividend of
1.0 yen/share for a total of 6.0 yen/share, as we marked the 30th anniversary of the start of ourbusiness at the end of March 2022.

¥6.0

¥4.50

Ordinary
dividend
5.0 yenCommemorative
dividend
1.0 yen

¥3.90

¥3.90

ratio
32.7%

Payoutratio
30.４%

Payoutratio
63.4%

Payoutratio
17.3%

Payoutratio
22.6%

FY 3/19

FY 3/20

FY 3/21FY 3/22

Forecast
for FY 3/23

¥3.70
Payout* The term-end dividend for FY 3/22 is the dividend per share approved at the 30th annual meeting of shareholders.
© 2022 JP-HOLDINGS, INC.

22

2

Long-Term Management
Vision/Medium-termManagement Plan

23

Long-Term
Management
Vision/Medium-termManagement Plan

Target Indicators
We aim to develop “nursery schools and facilities thatwould be selected by customers.”

Long-Term
Management
Vision(To realize nursery schools, facilities, and an enterprise that will be continuously selected by guardians,
municipalities, training schools, and officials)

Improvement and expansion of existing businesses, newbusinesses, and capital/business alliances
Target consolidated sales: 100 billion yen

To improve revenues from existing businesses and the qualityof childcare support, and create new value while grasping thechanges in the social and business environments
Mid-termmanagement
goals

Promotion of reform of the management structure and growth strategy in 3 years from FY3/22
to FY3/24

3rd year (final fiscal year) of the medium-term management plan
FY3/24; Net sales: 36,300 million yen, ordinary income: 3,960
million yen© 2022 JP-HOLDINGS, INC.

24

Long-Term
Management
VisionActivities for Achieving Consolidated Net Sales of 100 Billion Yen

We will evolve our existing businesses and cultivate new(Net sales)
長Unit: 100 million yen
domains for further growth.
期
New business:
経営
50 billion yen●Members-only
platform businessビ●Sale
ジ of existing programs and training●Business related to child-rearing andョ of businesses in the same industry
M&A●Overseasbusiness mainly in Asia
ン
●Creation of new value in cooperation
with Gakken HD

中
期
経
営
目
標

1,000

Strengthening of the sales business
utilizing our know-how
Creation of new businesses utilizing the economies
of scale
Digital business and members-only platform

M&A/business alliance/overseas business+

Existing business:
50 billion yen●Cooperation between nursery schools andschool clubs (to increase our dominance)●Development of nursery schools andfacilities that would be selected bycustomers●Enrichment of digital and learning
programs

New business/M&A

500

Establishment of new school clubs and children’s houses
To increase the number of facilities two times to 200

Improvement of profitability and increase ofoperation rate of existing businesses

Existing businesses (nursery schools, school
clubs and children’s houses)
FY3/22© 2022 JP-HOLDINGS, INC.

25

Medium-termManagement Plan

Medium-term Management Plan (FY 3/22 to FY 3/24)

Expansion of existing businesses, pursuit of expertise, and development of new businesses
Enhancement and promotion of M&A, business alliance, global operation, specialization, andsociality

Existing business ➡
expansion

Business scale
expansion

Pursuit of expertise
Domestic and overseas enterprisesChildcare support business

M&A ➡ of companies in the same field or different fields

Business alliance ➡ Related/different business
Early childhood learning program

SurveyPlatform businessTechnical support

Global operation

New business ➡
Development andexpansion

ResearchMarketing

Development support
Support business byvisiting nursery schools

Marketability andsociality© 2022 JP-HOLDINGS, INC.

26

Business
Environment

Business Environment Surrounding our Company

As our business environment is changing, we need to take measures for evolving ourexisting businesses and achieving further growth.
◆ Changes in the surrounding environment

Current
situation

Predictedchanges intheenvironmentImpact of COVID-19
Worsening of internal and external
economies
Rise in prices of commodities andskyrocketing of prices of resourcesSignificant drop in the number of births
Increase of the budget for childcare support(Japan)◆ Business environment
Maintenance of health and motivation amid thecoronavirus pandemicImprovement of mindsets of onsite workers
Streamlining of business operations
New measures in response to market and parental
trendsEstablishment of growth strategies

Intensification of the competition for acquiring children (decrease in the number of children on waiting lists,saturation of nursery schools in the area)
Closure of more nursery schools (declining birthrate, saturation of nursery schools in the area)
Acceleration of restructuring of childcare enterprises (forming alliances in response to oligopolization)
Outsourcing of operation of more public nursery schools to private enterprises
Change of social welfare corporations due to the amended Social Welfare Act (enhancement ofcompetitiveness)Establishment of the Agency for Children (April 2023)
New measures and budget expansion for childcare support

Develop nursery schools and facilities
that would be selected by customers

Improvement in corporate
value/Sustainable growth© 2022 JP-HOLDINGS, INC.

27

Medium-termManagement Plan

FY3/23 and Medium-term Management Plan (Management Policies)●Shift from the management system based on “revenue improvement” to the phase based on “business expansion”●To improve operation efficiency through digitalization and systematization, which would support new business strategies, anddevelop and execute new businesses●We aim to increase sales and profit, and achieve an operating income margin of 10% or higher.
● Consolidated net sales: 100 billion yen (50 billion yen for existing businesses, 50 billion yen for new businesses)

Long-term
goals

Medium-termManagement
Plan
From FY3/22
To FY3/24

To become No.1 in each region by establishing “nursery schools and facilities that would be selected by customers” (quality, reliability,
differentiation, and brand development)To become an enterprise that will be trusted by local communities and guardians and loved by staff (dissemination of information inside andoutside the company and reform)
To improve the child-rearing environment in cooperation with local communities and society (developing an environment that makes it easierto give birth to and rear children)
To develop a working environment with worthwhile jobs and enrich the educational system (curbing turnover ratio)
To create new businesses and establish a pillar of business other than subsidies(1) Establishment of nursery schools andfacilities that will be selected by customers(2) Improvement in profitability(3) Fortification and streamlining of the
management base(4) Promotion of growth strategy

Sustainable growth
To maximize earnings fromexisting businesses
Expansion of business scale

Nursery schools and facilities
that would be selected bycustomers

Establishment of the
management base

Establishment of a new pillarof revenues

No.1 in each region(Quality and services
unmatched by othercompanies)

Streamlining ofmanagement(Simple operation)

Ratio of sales: 10% or higher(Development of new
businesses)© 2022 JP-HOLDINGS, INC.

28

Medium-termManagement Plan

Management Strategy Map
Provision of services and products

Existing businesses

Penetration in markets

New businesses(2)・Increase of enrolled children and improvement in
profitability at each facility
・To establish new facilities and make them authorized
・Early childhood learning and new programs(differentiation)
・Improvement in corporate image through branddevelopment activities

To increase revenues further

Development of products andbusinesses
・External sale of existing businesses
・Development of new programs and products
・Food Business (to deal with parents’ concern)*Sales promotion utilizing the childcare support
platform

Enhancement of businessdevelopment

(1)

(3)

Cultivation of new markets
New businesses

Provision in the market

Existing businesses

・New childcare business with digital technologies⇒ Online childcare and digitalization of early childhood learning
programs
・ Establishment of a new facility specializing in English
・ Implementing our company's original STEAMS childcare andschool-age children's programs.
・Development support business (multifunctional facilities)➡ After-school day care
➡ Child development support business/Support business byvisiting nursery schools

To extend our existing businesses, and offer these
services earlyDiversification
in a narrow sense
・ Child-rearing assistance platform⇒ Cooperation in different fields and business forincreasing clients・ Creation of new businesses⇒ Business as a new pillar

Cooperation and alliance withenterprises in different fields© 2022 JP-HOLDINGS, INC.

29

Medium-termManagement Plan

Medium-term Management Plan (FY3/22 to FY3/24)

Plans were reviewed as performance improved greatly in FY3/22 and numerical targets were achieved two years
ahead of schedule thanks to the new measures, fortification of management base and structural reform whileconsidering the changes in the market environment.

Medium-term Management Plan
FY3/22

Unit: million yen

Results

FY3/23

Initial forecast

Revisedforecast

FY3/24Compared tothe initial
forecast

Y/yTargetNet sales

34,37335,64035,6400%

3.7%

Operatingincome

3,344

3,560

3,633

2.1%

8.6%

Operatingincome margin

9.7%

10.0%

10.2%

0.2%

0.5%

Ordinary
income

3,358

3,580

3,711

3.7%

Ordinary
income margin

9.8%

10.0%

10.4%

Net income

2,279

2,325

6.6%

6.5%

Net income
marginY/y36,300

1.9%

10.5%

3,960

6.7%

0.4%

0.6%

10.9%

0.5%

2,566

10.4%

12.6%

7.2%

0.7%

0.6%

(Rounded down to the nearest million yen/Operating income margin, ordinary income margin, and net income margincompared to the initial forecast and Y/y are the difference.)© 2022 JP-HOLDINGS, INC.

30

3

Priority Measures for the Third
Quarter of FY3/23 and Beyond

31

Priority Measures

Summary of FY3/23 Q2

Steadily proceeded with the priority measures for the second half and next fiscal year
Priority measures

Progress

Development nursery schools andfacilities that would be selected bycustomers

The number of visitors has increased through digitally-enabled nursery school tours and applications.
Strengthened information dissemination through each nursery school’s website and implemented
collaborative events through the use of online services.
Increased the number of classes offered in cooperation with nearby schools (swimming, karate, soccer,etc.).
Increased the number of children accepted by expanding early childhood learning programs anddifferentiated ourselves from other facilities.

Improvement of profitability ofchildcare support facilities

Improved the profitability of each facility by optimizing staffing.
Increased the number of new contracts for school clubs and children’s houses based on the dominancestrategy.
Increased online training and other programs to improve the quality of childcare services.

Improvement of operational efficiency(compact head office)Reduced operations at facilities and the head office through the installation of a system.
Consolidated group companies to improve efficiency of intra-group operations (3 companies to 1 company).
Prepared for the development of the system infrastructure to improve efficiency and sophistication ofoperations.

To deal with guardians’ problems(new business)

Promoted product development and test marketing at the facility for use of prepared foods and dinner sales.
Prepared for sales of diaper subscriptions, study and equipment sets as a convenience for parents.
Developed new learning programs (childcare facilities specializing in English/nursery schools and school
clubs for STEAMS).

Enrichment of the development
support business(new business)

Child-rearing assistance platform(codomel)Expanded developmental support patrols for children of concern and created database.
(considering collaboration with other companies)
Selected concepts and areas for the establishment of a multifunctional facility.

Received Grand Prize in the Parent Support Services category of the BabyTech® Awards 2022 in recognitionof our SDGs initiatives.
Developed and verified dinner meal sales and expansion of service functions.

© 2022 JP-HOLDINGS, INC.

32

Priority Measures

Major Management Strategies for FY 3/23

To adapt to the social environment and implement differentiation strategies based on digitaltechnologies
To actively promote “M&A and business alliances” to operate business and expand its scale

Customeroriented value
creation×

Utilization ofdigitaltechnology

To realize competitive
advantages

×Creation of new
business models!

×

Active promotionof M&A andbusiness allianceestablish nursery schools and facilities that
➡ To
will be selected by customers continuously●Increase of new points of contact withcustomers●Differentiation from competitors●Interactive communication●Enrichment of contents and technical services

To actively promote “M&A and business alliances” to operate business andexpand its scale© 2022 JP-HOLDINGS, INC.

33

Priority Measures

Management Strategy (1) Devote Ourselves to the “Development of Nursery
Schools and Facilities That Would Be Selected by Customers”

Using digital technology and working with local communities to develop nursery schools andfacilities that would be selected by customers

Nurseryschools
Corporate
partnerships

Onlinedistribution ofvideosExpansion of food andagriculture education

English, gymnastics,
eurhythmics anddance

To give lessons incooperation with otherenterprises

Online/videobased facility
tours

Enrichment of the website andstrengthening of communication

Parents

Promotion of brandrecognition

Those who are expected
to give birth and raisechildren© 2022 JP-HOLDINGS, INC.

34

Priority Measures

Management Strategy (2) Improvement in Profitability in the Child Raising
Support Business/Cooperation

Childcare from babyhood to early childhood to school age through dominance strategy
Further qualitative improvement of childcare and child-rearing through human resource education

Area dominance strategy

Personnel development

Increase the number of schools clubs andchildren’s houses to 200/increase of 10
facilities per year

Expansion of our education
system through more than 300
training programs

Achievementof ourdominance

To support childcare frombabyhood to early childhoodto school age in our area
End of Sep. 2022
New contracts forundertaking the operationof 12 schools clubs

Face to facelectures

Online training

Qualitative improvement of childcare andchild-rearing© 2022 JP-HOLDINGS, INC.

35

Priority Measures

Management Strategy (3) Improvement of Operational Efficiency

Elimination of wasteful operations and systemization to improve efficiency and make
operations more sophisticatedRealization of a compact head office through optimization of personnel
Improvement of operational
efficiency

Reduction of turnover ratio

Qualitative improvement

Simple operation
Visualization andstandardization of operations

By checking the conditions of workers,
we aim to keep turnover ratio fromexceeding 10%.

Expansion of the management
system in the area

Improvementof operational
efficiency

Cooperation
between on-site
workers and thehead office

Optimization of staffing
Restructuring within the group

Systematization
To be installed sequentiallyfrom October 2022

Development of systems for HR, etc.
Data analysis/improvement ofoperational efficiency

Improvement of operational efficiency
at the head office and in the field

Reduction ofworkload(Nursery schools andfacilities)
System in which they
can concentrate on
rearing and bringing up
children

Block and area-based
management system
Improvementof
operational
efficiency

Block manager
Director of Childcare Dept.
In charge of promotion
Area manager
Nursery school director© 2022 JP-HOLDINGS, INC.

36

Medium-Term
Management Plan••

Management Strategy (4)-1 To Deal with Guardians’ Problems

The results of the questionnaire targeted at guardians using nursery schools operated byour corporate group indicate that most of them are bothered by the chores of “determining
menus” and “cooking supper” for their families.
They put importance on “nutritional balance” for their children’s meals.
To commercialize the lunches eaten by childfen (as frozen food) for dealing with guardians’ trouble
To operate the food business for offering “nutrients,” “familiar seasoning,” and “deliciousness”

Q: Trouble regarding meals at home
To determine menus
To cook supper
It takes time to cooka meal.
To clean up after
a mealTo go shopping foringredients
To cook a breakfast
Other

Q: What they put importance on for children’s meals
Nutritional balance
Table manners (custom, how to use
chopsticks, postures, etc.)
Easy-to-eat
Use of plentiful vegetables
Development of an eating environment(atmosphere, turning off the TV, etc.)
Seasoning
Selection of ingredients with few foodadditives
Homemade
Use of domestic ingredients
Appearance
Other

Developing a new service business that takes the Other
parents’ concerns as the starting point for the business.
*Questionnaire targeted at guardians at each facility operated by our corporate group© 2022 JP-HOLDINGS, INC.

37

Priority Measures

Management Strategy (4)-2 Food Business/Subscription-based Support

Food business responding toguardians’ problems/offering childcare-related products (subscription-based)
Development of food businessChild care supplies and diapers

Dinner meal sales (product development)

Service to provide all necessary
items at nursery schools

DiaperSubscription(1) Merchandising based on menus, etc.
(2) Careful selection of ingredients(3) Cooking(4) Rapid cooling<Collaboration with food companies>
Product development and sales system

Utilization of the child-rearing assistance platform

Nurseryschools

Learning products
for each age

Expansion ofsales channels
Parents and codomel members
Other childcare providers© 2022 JP-HOLDINGS, INC.

38

Medium-Term
Management Plan

Management Strategy (4)-3 Development of Learning Programs

To provide unique childcare and education services not available at other companies
Nursery schools and school clubs for STEAMS/childcare facilities specializing in English
Initiatives for establishing nursery schools
and school clubs for STEAMSSTEAM is a new educational method developed in the U.S. by combining
the initials of five fields.
This method has been already spread around the world. In Japan, theMinistry of Education(MEXT) is promoting STEAM as a cross-curricularlearning program to help children discover and solve problems in the realworld.

As physical activity is essential for the healthy development of
infants, toddlers, and school-aged children, we will add “Sports”
to STEAM and incorporate it into daily childcare and child-rearing.

Childcare facilities specializing in English
Facilities where native English-speaking teachers are assigned to thenursery schools and children can experience English in an enjoyablemanner.
➡Preparation for operation in April 2023
Establishment of bilingual nursery schools (tentative name)Three facilities to be operated in Kanto (planned)➡To develop programs that allow children to learn and experience
English in an enjoyable manner➡Supported by native English-speaking teachers

ScienceTechnology
Engineering
Art
Mathematics
SportsPromoting program development
Implementation of test marketing in some regions
Collaboration with universities and other research
institutions to consider measures to be taken© 2022 JP-HOLDINGS, INC.

39

Medium-Term
Management Plan

Management Strategy (4)-4 Multifunctional Facilities

To improve the development support business and offer technical support to existing pupils ofnursery schools, school clubs, and children’s houses
Support business by visiting nursery schools

Establishment of multifunctional facilities

Traveling
instructors(1) Morning: Child development support
Preschoolers(2) Daytime: Child development support
Preschoolers
After-school day care
Lower grades of elementary school(3) Evening: After-school day care
Higher grades of elementary school(1) Support business by visiting nursery schools▷Specialized staff visit each facility and offer consultation
services for development of children who need care.
Support for disabled children: To hold training and give
instructions for enabling them to live in a group
Counselors for pupils, nursery staff, physical therapists,
occupational therapists, psychological counselors, and others
who possess the knowledge and experience of support fordisabled pupils visit facilities.
(2) Establishment of multifunctional facilities
Establishment of multifunctional facilities in dominant areasof childcare centers
To conduct the development support business in morning,
daytime, and evening hours

Establishment of after-school day
care in the dominant area

After-school day care

Asc Nursery
SchoolAsc Nursery
SchoolAsc Nursery
School© 2022 JP-HOLDINGS, INC.

40

Medium-Term
Management Plan

Management Strategy (5) Child-Rearing Assistance Platform

Matching site handling goods required for rearing children (brand new, used, and reused goods and services)
To develop new businesses and products through CtoC, BtoC, BtoB, and overseas services and marketing
Received Grand Prize in the Parent Support Services category of the BabyTech® Awards 2022

Outline of “codomel,” a child-rearing assistance platform

Business expansion andcollaboration(1) Expansion of the circle of SDGs
through collaboration with various
companies including our company
Increase the number of donation
boxes(2) Expansion of service contents
Increase information on
childcare support(3) Development of new services andproducts
Food business (dinner meal sales)
Sale of childcare supplies
Photo sales in cooperation with eachfacility
Creation of products in cooperation withother companies
Childcare-related products
Service development in cooperation withother companies
Child care services
External sales to other childcare providers
Overseas services© 2022 JP-HOLDINGS, INC.

41

Medium-Term
Management Plan

Management Strategy (6) Expansion of Existing Businesses andCollaboration with Other Companies

Aggressively pursue M&A of companies in the same industry and childcare-related companies in order toachieve sustainable growth.
Expand early childhood learning programs (strengthen measures for improving existing programs anddeveloping new ones)

Expansion of learning programs
Early childhood learning programs

Mojikazu Land (in cooperation with Gakken, etc.)
Expansion of English, gymnastics, eurhythmics
and dance programs(1) Promotion of early childhood learning and new programs▷Expansion of early childhood learning programs
To increase the number of Mojikazu Land facilities from 62 to100▷Development of new programs, and improvement of services
for infants
To adopt dance and art programs
To increase recognition of Baby Asc (program for infants)

Business scale expansion
To actively promote M&A andbusiness alliances(business scale)
10 million yen to 20 million yen

Same industry (childcare centers, childcare
support companies)
Peripheral businesses related to child-rearing(2) Promotion of M&A and business alliances withother companies in the same industry▷Promotion of M&A through oligopolization▷Alliances with other industries and childcare-related
peripheral businesses© 2022 JP-HOLDINGS, INC.

42

Medium-Term
Management Plan

Business Portfolio

Expansion of new business domains through the response to market changes, business tie-up
with Gakken, etc.
High
Improvement incorporate valueBrand
development● Online business*Existing facilities
and external sale

●Synergy for further
growth●New value creation

Growthpotential

Business expansion for
creating new value●Development oflecturers for earlychildhood learning

New businessdevelopment

Increase of points of contact
with customers
EnglishExercise
Eurhythmics
DanceChild-rearing
assistanceplatform(solution)

Training
business

Product
development
and saleEnglishCentralExercise
KitchenEurhythmics●Streamliningof
Development ofDance
operations/external sale multi-functional
facilities●To make pupils,
guardians, and family
members lifelong
customers●Sale of teaching materials(online)*Existing facilities andexternal sale

●Development●Development Childcare supportof new
support businessbusiness
programs/exter
Childcarenal sale● To undertake thesupport business
operation of more
●To undertake theoperation of more
school clubs andchildren’s houses

New operations(expansion)
Existing businesses

Low/
minor

Early
childhoodlearning
programContribution
to revenues

school clubs andchildren’s houses● Implementation of early childhood
learning programs● Online business

Significant© 2022 JP-HOLDINGS, INC.

43

4

APPENDIX

44

SDGs

Social Issues to be Solved with Our BusinessSocial issues to be solved with our businessChildcare
support

Educational
supportRelated SDGs

Improve the quality ofchildcare support
Reduce the numberof children on waitinglistsPromotion of high quality childcare support
Establishment of new facilities for
decreasing the number of children on waitinglistsDevelopment and provision of online
childcare while grasping changes in thesocial environmentSafe, reliable facilities and operation
Provision of nutritious lunch for maintaining
healthEnrichment of support for child development

Offer high quality
early childhood
learning

Development and enrichment of educational
programs (English, exercise, eurhythmics
and dancing)Development and promotion of online
education
Development of programs for early childhood
learning at home in response to changes inthe social environment
Provision of early childhood learning
opportunities

×
Partnership

Major activities

To help solve social issues based on the partnership with stakeholders© 2022 JP-HOLDINGS, INC.

45

SDGs

Social Issues to be Solved with Our Corporate Activities

Social issues to be solved withour corporate activities

Related SDGs

Major activities

Personnel
development

Improvement in expertise andactualization of independent
career development

Promotion of work style reformEnrichment of training structure
Career paths and job rotation

Empowermentof women

Actualization of diversity
minded workplaces

Workstyles tailored to lifestyles
Systems for childbirth, childcare, and nursing care
Development of a proper business environment

Human rights
and D&I*1

Actualization of diverse
workstyles

Utilization of diverse human resources and soundbusiness administration
Development and production of female leaders

Socialcontribution to
local
communities

Creation of a childcare
environment

Promotion of childcare support in local areas
Promotion of employment
Promotion of prevention of abuse

Earthenvironment

Contribution to a sustainable
earth environment

Creation of environmentally sound facilities
Reduction of CO2 emissions by installing LED lighting
Reduction of food loss and waste

Partnership

To help solve social issues based on the partnership with stakeholders

×*1: Diversity & inclusion (To create something new by utilizing different experiences and accepting differences)© 2022 JP-HOLDINGS, INC.

46

SDGs

Initiatives to Solve Social Issues

As a mission of an enterprise that operates childcare support business, we will approach impoverishedhouseholds and take measures for preventing child abuse, which are social problems.

・We will discuss various measures for raising and donating funds, and determine and actively
promote “activities” and “initiatives” for the future of children.
(In December 2020, May and December 2021, and May 2022, we conducted the “support for
single parent households.”)
No poverty

Prevention of child abuse© 2022 JP-HOLDINGS, INC.

47

SDGs

Initiatives to Solve Social Issues

⦿To reduce environmental burdens and disposal costs, by thoroughly reusing and recycling
necessary products for childcare
⦿ To support “childcare around the world” by offering inexpensive, high quality, reusedchildcare goods, which are available only in Japan, to countries and regions in needChild-rearing assistance platform© 2022 JP-HOLDINGS, INC.

48

Supplementary
Material

Variations in the Number of Children on Waiting Lists and the Ratio ofChildren Enrolled in Nursery Schools, Etc. (2021)● The total capacity of nursery schools, etc.: 3.01 million children, up 49,000 children from the previous year.
● The number of children enrolled in nursery schools, etc.: 2.74 million, up 5,000 from the previous year.
● The number of children on waiting lists: 5,634, down 6,805 from the previous year.
Variations in the number of children on waiting lists andthe ratio of children enrolled in nursery schools, etc.

(Children)(人)(人)(Children)

Situation of the total capacity of nursery schools, etc.
and the number of children enrolled

No. of children on waiting lists
Ratio of children enrolled in childcare facilities (overall)No. of nursery schools, etc.

Ratio of children enrolled in childcare facilities (1 or 2 year old children)
Total capacity

No. of children enrolled

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021
2018

2019

2020

2021

Source: Ministry of Health,Labour and Welfare’s Summary of the Situation of Nursery Schools, Etc.
出典:厚生労働省「保育所等関連状況の取りまとめ」© 2022 JP-HOLDINGS, INC.

49

Supplementary
Material

Current Waiting List Situation in Each Prefecture
Prefecture
都道府県

As of April 1, 2022, the number of children
on waiting lists was 2,944 (down 2,690 fromthe previous year), a record low.
However, other surveys indicate thatdemand for childcare remains high,particularly in the Tokyo metropolitan area
and government-designated cities,
and the number of “hidden children on waiting lists”
exceeds 60,000.

No. ofRatio ofchildren on
待機児童数

children on
待機児童率
waiting lists

waiting lists

people人

R4年4月1日現在
Current
as of April 1, 2022 (都道府県数)
No of Prefectures

0 0人

(14)

1 １人以上100人未満
or more but less than 100

(23)

100
or more but less than 500
100人以上500人未満

(10)

500
or more but less than 1,000 (0)500人以上1,000人未満

Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2022)

北海道
青森県
岩手県
宮城県
秋田県
山形県
福島県
茨城県
栃木県
群馬県
埼玉県
千葉県
東京都
神奈川県
新潟県
富山県
石川県
福井県
山梨県
長野県
岐阜県
静岡県
愛知県
三重県
滋賀県
京都府
大阪府
兵庫県
奈良県
和歌山県
鳥取県
島根県
岡山県
広島県
山口県
徳島県
香川県
愛媛県
高知県
福岡県
佐賀県
長崎県
熊本県
大分県
宮崎県
鹿児島県
沖縄県
計

22
0
35
75
7
0
23
8
14
1
296
250
300
220
0
0
0
0
0
9
0
23
53
64
118
17
134
311
81
30
0
0
79
8
14
0
19
25
4
100
8
0
9
0
0
148
439
2,944

© 2022 JP-HOLDINGS, INC.

％

0.03
0.00
0.12
0.17
0.03
0.00
0.07
0.01
0.03
0.00
0.21
0.20
0.09
0.12
0.00
0.00
0.00
0.00
0.00
0.02
0.00
0.03
0.03
0.16
0.32
0.03
0.07
0.26
0.31
0.15
0.00
0.00
0.16
0.01
0.05
0.00
0.08
0.10
0.02
0.08
0.03
0.00
0.02
0.00
0.00
0.37
0.71
0.10

50

Supplementary
Material

Current Nursery School Teacher Shortage Situation

 The ratio of job openings to job applicants for nursery school teachers is decreasing.
However, there is a continuing shortage of nursery school teachers across Japan.
(National average as of August 2022: 2.33 times)
 Jobs to applicants ratio of Tokyo had the trend of decrease at 2.48 as of May 2022, butturned to increase from June 2022 to 3.21 as of August 2022.
Effective Opening to Application Ratio for Nursery School Teachers (X)8Nationwide

7

Tokyo

6
5

Aug.
3.21

4

●

3

●

2

Aug.
2.33

1
0

Source: Ministry of Health, Labour and Welfare Employment Security Bureau’s General Job Placements (Report on Employment Service)© 2022 JP-HOLDINGS, INC.

51

Supplementary
Material(1)

Concept of the Child-Rearing Assistance Platform “codomel”

Platform namecodomelcodomel is a word we have coined by combining the word for children in Japanese of “codomo” with the word for product in(2) Concept of theLatin of “ merx.”
platform name and We have used the colors of the five initiatives we will attempt to achieve through this service from among the 17 SDGs: “1.
logo
No Poverty,” “3. Good Health and Well being,” “7. Affordable and Clean Energy,” “10. Reduced Inequalities” and “16. Peace,
Justice and Strong Institutions.” In addition, the circular design made by people linking their hands expresses the “circle
for everyone,” which we will create by connecting children, parents and local communities through this service.

(3) Logo

The first services of the codomel child-rearing assistance platform will be a matching service in which users can
individually sell and purchase used goods over the Internet focused on childrearing-related supplies (e.g., baby(4) Overview of the firstsupplies and clothing) mainly for the childrearing generation and a service to provide products highly needed
servicesby the childrearing generation and childrearing related information and services.
We will also collect childrearing-related supplies and clothing donated by parents at the nursery schools
operated by our group and then provide them as used goods.
We will unroll this service overseas and further expand services after the launch of this service on April 1, 2022.

© 2022 JP-HOLDINGS, INC.

52

Supplementary
Material

Recruitment of Nursery School Teachers
FY3/16

Nursery School
Teacher

FY3/17

FY3/18

FY3/19FY3/20FY3/22As of the end of Sep.

FY3/21

New
graduates

197

247

276

248

182

166

Mid-career
employment

241

327

325

269

292

226

New
graduates

23

32

46

26

9

7

Non qualified

166
Joined on Apr.
1, 2022261
As of the end of Sep. 2022

5

*After joining JPHD, non qualified graduates are expected and assisted to acquire nursery school teacher qualification. Started this recruitment style from FY2016.
*Includes seconded employees to associated companies

Trend of Employee Numbers in Childcare Support Business（人）(Persons)(*Includes employees of school clubs staffs, nutritionists, etc. other than nursery school teachers)

7000

正社員

アルバイト

6000
5000
4000
3000
2000
1000
0

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22© 2022 JP-HOLDINGS, INC.

53

Supplementary
Material

Changes in the Number of Facilities Operated and the Number of Children
Accepted to Nursery Schools
FY3/12

Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)
Small-scale Nursery Schools
Tokyo Licensed
Schools
Company-led
NonNurseries
licensedNon-licensed
Nursery
Municipality
Schools
Authorized
Non-licensed
Other non-licensed
School Clubs
Children's Houses
Private School Clubs
Kindergartens (Overseas
Facility)

Total

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22As of Sep.
30

FY3/22

11

14

16

14

10

10

11

12

12

11

11

11

61

71

85

102

118

136

148

160

171

177

182

183

0

0

0

0

0

0

0

2

0

0

0

0

26

26

26

26

26

23

21

21

20

19

13

9

0

0

0

0

0

0

0

2

2

１

1

1

4

4

4

4

1

0

0

0

0

0

0

0

0

0

0

0

4

3

3

3

4

4

4

5

39
7
0

40
8
0

43
8
0

46
8
0

55
10
0

63
12
4

71
12
5

72
11
5

72
11
4

77
11
１

81
11
0

89
10
0

0

0

0

0

0

148

163

182

200

224

0
251

1

1

1

0

0

0

272

289

297

301

303

308

*We reviewed the count by management structure in the 2Q of FY3/16 and changed three licensed schools (public-private management) to other non-licensed nursery schools.

300
Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)
Small-scale Nursery Schools

200

100

Non-licensed Municipality
Authorized
Non-licensed Othernon-licensed

50

15,323

15,653

15,587

146

6,956
102

159

172

16000
14000

11,192

9,350
8,133

Company-led Nurseries

14,35015,581

12,375
10,461150Children in Nurseries

14,058

250

Tokyo Licensed Schools

Number of Children

Trend of Nurseries and Children

Number of facilities

183

200

209

212

211

209

12000
10000
8000

131
115

6000
4000
2000

0

0
FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/22
As of Sep.
30

© 2022 JP-HOLDINGS, INC.

54

Supplementary
Material

Consolidated Results (Highlights)
FY3/18

FY3/19FY3/20FY3/21

FY3/22

Net sales (million yen)

26,94529,64732,16933,50034,373Operating income (million yen)

1,469

1,880

1,989

2,857

3,344

Ordinary income (million yen)

1,469

1,920

2,003

2,947

3,358

Net income attributable toowners of parent (million yen)

910

1,071

1,122

537

2,279

Net income per share (yen)

10.70

12.44

12.81

6.15

26.06

*Net sales and operating income are the amounts after the reclassification of presentation methods.

Net sales(million yen)

Net sales
売上高

Operating

営業利益
incomeOperating income/Ordinary income(million yen)

Ordinary

経常利益
income40,0004,000

35,0003,500

30,0003,000

25,0002,500

20,0002,000

15,0001,500

10,000

1,000

5,000

500

0

0
FY 3/182018年3月期

FY 3/192019年3月期

FY 3/20
2020年3月期

FY 3/212021年3月期

2022年3月期
FY 3/22© 2022 JP-HOLDINGS, INC.

55

Supplementary
Material

Consolidated Results (Balance Sheet/Statement of Cash Flows)

FY3/18

FY3/19FY3/20FY3/21

FY3/22

Total assets (million yen)

25,75828,255

26,122

29,74034,274

Net assets (million yen)

7,756

8,950

9,636

10,007

11,975

Shareholders’ equity ratio (%)

30.1

31.7

36.9

33.7

34,9

FY3/18

FY3/19FY3/20FY3/21

FY3/22

Cash flows from operating
activities (million yen)

1,865

1,829

2,320

2,469

3,884

Cash flows from investing
activities (million yen)）-1,292

-940

418

190

413

Cash flows from financing
activities (million yen)

-135

1,475

-3,349

2,155

1,978

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

4,455

6,816

6,206

11,02017,296© 2022 JP-HOLDINGS, INC.

56

Supplementary
Material

Dividends

The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio ofaround 30% while maintaining the necessary internal reserves for future business development and tostrengthen our management structure.
FY3/18

FY3/19FY3/20FY3/21

FY3/22

Amount of dividend pershare (yen)

3.50

3.70

3.90

3.90

4.50

Payout ratio (%)

32.7

29.7

30.4

63.4

17.3

© 2022 JP-HOLDINGS, INC.

57

Forecast Precautions
This document contains forecasts about the future. However, these are predictions thathave been made by our company based on the information available at the time of
publication. The reality may be significantly different from our predictions due to economic
conditions and market trends. Furthermore, this document is not intended to solicit
investment. We are under no obligation to amend or change the information pertaining toforecasts contained in this document even if we obtain new information in the future.

Inquiries:
5F Shinagawa Season Terrace, 1-2-70 Konan, Minato-ku Tokyo
JP-HOLDINGS, INC. Tokyo Office
Corporate Communications & Investor Relations Div.
TEL: 03-6433-9515 e-mail : jphd_pr@jp-holdings.co.jp