Summary of Business Results for the First Quarter Ended June 30, 2016
[Japan GAAP] (Consolidated)
August 5, 2016
Company
Listed on the TSE 1
JP-HOLDINGS, INC.
Stock Code2749
URL: http://www.jp-holdings. co.jp
Representative
Kazuhiro Ogita, President and Representative Director
C o n t a c t
Mika Matsumiya, General Manager of Administration Div.
T E L: +81-52-933-5419
Expected date of filing of annual securities report: August 12, 2016
Expected starting date of dividend payment: ―Preparation of supplementary financial document: YesResults briefing: Yes (for institutional investors and individual investors)（Rounded down to million yen）

１. Consolidated business results for the three months ended June 2016
(April 1, 2016 through June 30, 2016)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales
Three months ended Jun. 2016
Three months ended Jun. 2015
(Note) Comprehensive income

Million yen
5,424
4,881

Operating income
%
11.1
15.4

Million yen
99248

%
-60.0
13.4

Ordinary income
Million yen
138
280

%
-50.5
9.5

Net income attributable toowners of parent

Million yen81197%
-58.9
9.3

Three months ended June 2016: 72 million yen (-63.5 %)Three months ended June 2015: 199 million yen (12.7 %)Net income
Diluted net income perper shareshareYen
Yen
Three months ended Jun. 2016
0.97
Three months ended Jun. 2015
2.36-(2) Consolidated financial position
Total assets
Million yen
21,974
21,519As of Jun. 30, 2016
As of Mar. 31, 2016

Shareholders’ equity
ratio%
28.6
30.5

Net assets
Million yen
6,282
6,570

(Reference) Shareholders’ equity
As of June 30, 2016: 6,278 million yen
As of March 31, 2016: 6,566 million yen

2. Dividends
End of 1Q

0.00

Annual dividend
End of 3Q
Yen-

0.00

-

End of 2Q
Yen

Year ended Mar. 2016
Year ending Mar. 2017
Year ending Mar. 2017 (forecast)

Yen-Year-end

Total
Yen

Yen

5.00

5.00

4.00

4.00

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

3．Forecast of consolidated business results for the fiscal year ending March 2017
(April 1, 2016 through March 31, 2017)
Net sales

Operating income

Million yen

Year ending Mar. 2017

22,340(% change from the previous corresponding period)
Net income
Net income attributable toOrdinary income
owners of parent
per share%

8.7

Million yen

1,564(Note) Revisions to business forecast for the current quarter: None%-14.8

Million yen

1,651%-12.4

Million yen

1,057%

-11.9

Yen

12.68

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes
in the scope of consolidation): None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: None: None: None

(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of June 30, 2016
87,849,400 shares
As of March 31, 2016
87,849,400 shares②Treasury stock at the end of period
As of June 30, 2016
4,108,206 shares
As of March 31, 2016
4,394,106 shares③Average number of stock during period (quarterly cumulative period)
Three months ended June 2016
83,611,769 shares
Three months ended June 2015
83,455,294 shares(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and the average
number of stock during period for the fiscal year ended March 2016 and the first quarter of the fiscal year ending March 2017
includes the company's shares held by Trust & Custody Services Bank, Ltd. as trust property of "Stock Benefit Trust(Employee Stock Ownership Plan)"*Implementation status of quarterly review proceduresThis financial summary is not subject to the quarterly review procedures pursuant to the Financial Instruments andExchange Act. At the time of disclosure of this report, the procedures for review of consolidated financial statements
pursuant to the Financial Instruments and Exchange Act are being conducted.
*Explanation regarding appropriate use of business forecasts and other special instructions
Forecasts regarding future performance in this material are based on information currently available to the Companyand certain assumptions that the Company deems to be reasonable at the time this report was prepared. Actual results
may differ significantly from the forecasts due to various factors.
The company plans to hold results briefing for institutional investors and individual investors on August 9, 2016. Afterthe results breifing, the company will promptly post presentation materials distributed at the results briefing on thecompany website. Please confirm the results briefing schedule and other information on the company website.

○Table of Contents of the Appendix
1. Qualitative Information on Quarterly Financial Results .....................................................................................................2(1) Results of Operations ......................................................................................................................................................2(2) Financial Position ...........................................................................................................................................................3(3) Consolidated Earnings Forecasts ....................................................................................................................................3
2. Summary Information (Notes) ............................................................................................................................................4(1) Changes in Significant Subsidiaries during the Period ...................................................................................................4(2) Application of Accounting Procedures Specific to Preparation of the Consolidated Quarterly Financial Statements.....4(3) Changes in Accounting Policies, Accounting Estimates and Restatement ......................................................................4(4) Additional Information....................................................................................................................................................4
3. Quarterly Financial Statements ...........................................................................................................................................5(1) Quarterly Consolidated Balance Sheets ..........................................................................................................................5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ......7(3) Notes on quarterly consolidated financial statements .....................................................................................................9(Notes on going concern assumption).............................................................................................................................9(Notes if there is a significant change in the amount of shareholders' equity) ................................................................9－ 1 －1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the first quarter of the consolidated fiscal year ending March 2017, the Japanese economy was on a gentle recovery track, as
the employment environment has improved due to the financial policies and measures of the government and the Bank of Japan,etc., but the economic outlook remains uncertain, because of the unstable trends of share prices and exchange rates due to theconcern over the slowdown of the economies of emerging countries, the British exit from the EU, etc.
Under these circumstances, the needs for nursery schools in the nursery service business are still at a high level, and the Groupestablished the following new facilities.
(Nursery school)
Asc Shibakoen Nursery School(Apr. 1, 2016)

Asc Ikebukuro-honcho Nursery School(Apr. 1, 2016)

Asc Kamishinden Nursery School(Apr. 1, 2016)

Asc Higashihie Nursery School(Apr. 1, 2016)

Asc Miharashi-no-oka Nursery School(Apr. 1, 2016)

Asc Gotenhama Nursery School(Apr. 1, 2016)

Asc Shidami Nursery School(Apr. 1, 2016)

Asc Meitofujigaoka Nursery School(Apr. 1, 2016)

Asc Yamada-kagitori Nursery School(Apr. 1, 2016)(School club)Takecho Kids’ Club

(Apr. 1, 2016)

Sengoku Cultivation Room I(Apr. 1, 2016)

Sengoku Cultivation Room II(Apr. 1, 2016)

Meidai Cultivation Room(Apr. 1, 2016)

Owariasahi-shi Shibukawa Children's Club

(Apr. 1, 2016)

Owariasahi-shi Zuihou Children's Club

(Apr. 1, 2016)(Children's house)
Sengoku Children's house(Apr. 1, 2016)

Owariasahi-shi Shibukawa Children's house(Apr. 1, 2016)

Owariasahi-shi Zuihou Children's house(Apr. 1, 2016)

As a result, the Group came to have 165 nursery schools, 61 school clubs, and 12 Children's houses, a total of 238 facilities forsupporting child-raising.
For the above reasons, for the first quarter of the consolidated fiscal year ending March 2017, sales were 5,424 million yen, up 11.1%
year on year, operating income was 99 million yen, down 60.0% year on year, ordinary income was 138 million yen, down 50.5%
year on year, and net income attributable to owners of parent was 81 million yen, down 58.9% year on year.

－ 2 －(2) Financial Position
Assets, Liabilities and Net Assets
The total assets as of the end of the first quarter of the consolidated fiscal year ending March 2017 amounted to 21,974 million
yen, up 455 million yen from the end of the previous fiscal year.
Current assets totaled up to 7,637 million yen, up 683 million yen from the end of the previous fiscal year, mainly because cash
and deposits increased by 1,253 million yen and deferred tax assets increased by 120 million yen, while accounts receivable,
other current assets, and inventory assets decreased by 442 million yen, 177 million yen, and 74 million yen, respectively.
Fixed assets totaled up to 14,336 million yen, down 228 million yen from the end of the previous fiscal year, mainly because
buildings and structures increased by 936 million yen and tools, furniture, and fixtures increased by 59 million yen, whileconstruction in progress decreased by 1,223 million yen.
The total liabilities amounted to 15,691 million yen, up 743 million yen from the end of the previous fiscal year.
Current liabilities totaled up to 6,371 million yen, up 421 million yen from the end of the previous fiscal year, mainly because
accounts payable increased by 377 million yen and other current liabilities increased by 512 million yen, while reserve forbonuses and accrued income tax, etc. decreased by 237 million yen and 207 million yen, respectively.
Fixed liabilities totaled up to 9,319 million yen, up 321 million yen from the end of the previous fiscal year, mainly because
long-term loans payable, asset retirement obligation, and net defined benefit liability increased by 277 million yen, 28 million
yen, and 15 million yen, respectively.
Total net assets as of the end of the first quarter of the consolidated fiscal year ending March 2017 totaled up to 6,282 million
yen, down 288 million yen from the end of the previous fiscal year, mainly because retained earnings decreased through thepayment of dividends.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 10, 2016, but actual results
may be different from the forecast according to the changes in business situations, etc.
If there are any changes, the company will disclose them properly.

－ 3 －2. Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
No applicable items.

(2) Application of Special Accounting Methods for Preparing Quarterly Consolidated Financial Statements
No applicable items.

(3) Changes in Accounting Policies, Changes in Accounting Estimates, Restatements
No applicable items.

(4) Additional Information(Application of the Implementation Guidance on Recoverability of Deferred Tax Assets)
The first quarter of the consolidated fiscal year ending March 2017 (From Apr. 1, 2016 to Jun. 30, 2016)“Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016)” has been
applied from the first quarter of this consolidated fiscal year.
(Transactions regarding the trust for stock-based benefits [handled by the employee shareholding association])
The first quarter of the consolidated fiscal year ending March 2017 (From Apr. 1, 2016 to Jun. 30, 2016)
The company adopted “the trust for stock-based benefits [handled by the employee shareholding association]” (hereinafterreferred to as “this system”) for the purposes of enhancing the welfare of employees and adding incentives for improving thecorporate value.
(1) Outline of the transaction
This system is an incentive plan for returning the merits of the increase in the price of the company’s shares to all
employees who joined “JP Employee Shareholding Association” (hereinafter referred to as “the Shareholding Association”).
For this system, the company concluded a contract for the trust for stock-based benefits [handled by the employee
shareholding association] (hereinafter referred to as “this trust contract”) with the company being the entruster and Mizuho
Trust & Banking Co., Ltd. being the entrustee. The trust set up in accordance with this trust contract is called “this trust.” In
addition, Mizuho Trust & Banking Co., Ltd. concluded a contract for the re-entrustment of the management of trust assets,
including securities, with Trust & Custody Services Bank, Ltd. (hereinafter referred to as “Trust E”), with Trust E being there-entrustee.
Trust E will acquire all of the company’s shares to be acquired by the Shareholding Association in advance, and sell themwhen the Shareholding Association acquires the shares. If the amount equivalent to gain on sale of shares is accumulated intrust assets for this trust as Trust E sells shares to the Shareholding Association, it will be distributed to the members of theShareholding Association who satisfy the requirements as beneficiaries as residual assets. In addition, the trust bankguarantees the borrowings for acquiring the company’s shares, and so if there remains some debts equivalent to the loss
from sale of the shares due to the decrease in the company’s share price, the company will repay the remaining debts inaccordance with the guarantee contract.
(2) The company’s shares remaining in trust
The company’s shares remaining in trust have been posted in the section of treasury shares under net assets, based on thebook value in trust (excluding ancillary expenses). The book value and number of the treasury shares were 1,207,910
thousand yen and 4,392,400 shares, respectively, as of the end of the previous consolidated fiscal year, and 1,129,287
thousand yen and 4,106,500 shares, respectively, as of the end of the first quarter of this consolidated fiscal year.

(3) Book value of the debts posted through the application of the gross amount method
1,207,910,000 yen as of the end of the previous consolidated fiscal year
1,207,910,000 yen as of the end of the first quarter of this consolidated fiscal year

－ 4 －[Quarterly Consolidated Financial Statements][Quarterly Consolidated Balance Sheet](Thousand yen)Previous Fiscal Year
(March 31, 2016)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Investment securities
Inventories
Deferred tax assets
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, netLand
Construction in progress
Total tangible fixed assets
Intangible fixed assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets－ 5 －Current First Quarter(June 30, 2016)

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

5,031,900
45,804
20,40824,251
562,4351,328,027
625,290-621
7,637,496

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

9,427,600-2,535,097
6,892,502
9,148-4,367
4,780
556,539-297,536
259,003
980,894535,856
8,673,037

12,135
12,135

11,831
11,831

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

302,1092,879,492
1,626,197
173,531
685,552-15,180
5,651,703
14,336,572
21,974,069(Thousand yen)Previous Fiscal Year
(March 31, 2016)

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Reserve for bonuses
Asset retirement obligation
Other
Total current liabilities
Fixed liabilities
Long-term loans payable
Deferred tax liabilities
Asset retirement obligation
Long-term accounts payable - other
Asset retirement obligation
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 6 －Current First Quarter(June 30, 2016)

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

158,1132,987,028
1,069,888
157,224
45,42696,275
4,392
1,853,438
6,371,787

8,457,330
2,240377,714
4,950
156,505
8,998,740
14,948,625

8,734,803
2,388
393,018
4,950
184,720
9,319,880
15,691,668

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

1,603,955
1,449,544
4,440,355-1,129,545
6,364,308-52,792-24,742-77,534
4,036
6,570,420
21,519,046-63,574-22,355-85,930
4,022
6,282,401
21,974,069

[Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income][Quarterly Consolidated Statement of Income][First Quarter of FY3/17](Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Subsidy income
Guarantee commission received
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary loss
Income before income taxes and others
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Net income
Net loss attributable to non-controlling interests
Net income attributable to owners of parent－ 7 －Previous First Quarter(April 1, 2015–
June 30, 2015)
4,881,898
4,205,075
676,823
427,978
248,845

Current First Quarter(April 1, 2016–
June 30, 2016)
5,424,869
4,685,085
739,784
640,357
99,427

11,771
23,812
5,939
41,524

15,98816,98016,402
4,664
54,034

10,2330
10,234
280,135

12,4162,486
14,903
138,559

280,135
235,273-152,218
83,054
197,080-13
197,094310
310
138,248
183,044-125,794
57,24980,998-14
81,013

[Quarterly Consolidated Statement of Comprehensive Income][First Quarter of FY2017](Thousand yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to shareholdersof the parent company
Comprehensive income attributable to non-controllinginterests

Previous First Quarter(April 1, 2015–
June 30, 2015)
197,080

Current First Quarter(April 1, 2016–
June 30, 2016)
80,998

926
1,068
1,995
199,075-10,7812,386-8,39572,603

199,089

72,617-13-14●Notes on quarterly consolidated financial statements(Notes on going concern assumption)
First quarter of FY3/17 (April 1, 2016 – June 30, 2016)
None●(Notes if there is a significant change in the amount of shareholders' equity)
First quarter of FY3/17 (April 1, 2016 – June 30, 2016)
None－ 8 －