JP-HOLDINGS, INC.
Financial Results for the Fiscal Year ending March 2019

TSE 1 (2749)
https://www.jp-holdings.co.jp/

ＩＮＤＥＸ◆ Overview of FY3/19 Results• FY3/19 Results• FY3/19 Quarterly Results• FY3/19 Financial Highlights• FY3/19 Profit and Loss Statement• FY3/19 Balance Sheet• FY3/19 Statement of Cash Flows• FY3/19 New Openings• No. of Facilities Operated by Region• No. of Facilities Operated◆ Corporate Strategy
Page 4
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◆ FY3/20 Forecast• FY3/20 Forecast• FY3/20 New Openings

14
15◆ Corporate Strategy for FY3/20• Business Environment Surrounding the Company
Current Waiting List Situation
18
Current Nursery School Teacher Shortage Situation
19
International Comparison of Initiatives to Address
Declining Birth Rates
20
JP Holdings is the largest operator in the Industry
21
Business Environment
22
Medium- to Long-term Business Environment 23• Management Policy for FY3/20
25• Target Performance Indicators
26• Medium- to Long-term Corporate Strategy
27• Long-term Management Vision28• Corporate Strategy for FY3/20
29
FY3/20 Measure (1) “Secure nursery school teachers”
30
Our Plan to Secure Nursery School Teachers
31
Recruitment of Nursery School Teachers
32
FY3/20 Measure (2) “Curb resignations”
33
FY3/20 No. of Children Accepted at Facilities (plan)34
FY3/20 Measure (3) “Regional block framework” 35
FY3/20 Measure (4) “Team building”
36
FY3/20 Measure (5) “ Develop and promote new
business”
37
Medium-term Management Plan: Promote New
Businesses
38
Medium-term Management Plan
39
Medium-term Management Plan
40
• ESG Initiatives
41◆ Appendix• Company Overview• Results Trends

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43 to 49
50 to 532

FY3/19 Results

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3

FY3/19 Results
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.

Net sales 29,298 million yen（YoY+9.4% Act. vs Plan -2.3%）
Operating income increased year on year thanks mainly to the increased sales of existing facilities with the step-by-step increasein the number of children accepted from June 2018 onward, even though operating income was pushed down by the following
factors: an increase in recruitment expenses and expenses related to corporate dormitories, and the placement of nursery school
teachers at each facility ahead of the timing of the acceptance of children at the beginning of the fiscal year.
Both ordinary income and net income attributable to owners of parent increased year on year thanks to an increase in nonoperating income, owing mainly to the increased amount of subsidies associated with an increase in users of corporate dormitories.
Additionally, a new record high was set for ordinary income.

Operating income
1,531 million yen (YoY +17.5% Act. vs Forecast -17.1%)
Ordinary income
1,920 million yen ( YoY +21.4% Act. vs Forecast -12.5%)
Net income attributable to owners of parent 1,071 million yen (YoY +17.7% Act. vs Forecast +9.3% ) Earnings forecast• Despite robust performance in the Child-raising Business amid openings of new facilities and an increase in the number ofchildren accepted, net sales, operating income and ordinary income results were below forecast due to time requirements in
identifying markets and undertaking validation with respect to new businesses, particularly for developing varying content andcarrying out test marketing.
• Net income attributable to owners of parent exceeded the forecast due to substantially lower facilities’ impairment loss
(extraordinary loss). This was largely attributable to improved profitability achieved by respective facilities in the Child-raising
Business upon having overhauled staffing allocations amid an increased number of children accepted to existing facilities.

DPS 3.70 yen Increased dividend 0.20 yen (Previous result: 3.50 yen/ Dividend forecast: 3.50 yen)

Facilities Operated
In FY03/2019, opened 17 nurseries and 4 school clubs, which totaled 21 facilities.
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4

FY3/19 Quarterly Results
・Revenue improved significantly thanks to the expansion in the number of children accepted from June 2018
onward even though operating profit was pushed down by the placement of nursery school teachers at eachfacility ahead of the timing of the acceptance of children in 1Q.
・ Sales and income increased YoY on a quarterly basis beginning in 1Q.

Net sales
4Q
2Q

3Q
1Q

Operating income
4Q
2Q

3Q
1Q

Ordinary income
4Q
2Q

3Q
1Q

Record highNet income attributableto owners of parent
4Q
2Q

3Q
1Q

1,920

29,29826,779
1,531

1,582

1,303
1,071
910

FY3/18

FY3/19FY3/18

FY3/19FY3/18

FY3/19FY3/18

FY3/19（Unit: million yen）

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5

FY3/19 Financial Highlights
FY3/19FY3/18

Forecast

ActualYear on Year
Comparison

Act. vs
Forecast

26,77930,00129,2989.4%- 2.3%

Operating income (million yen)

1,303

1,847

1,531

17.5%

- 17.1%

Ordinary income (million yen)

1,582

2,196

1,920

21.4%

- 12.5%

910

980

1,071

17.7%

9.3%

Net income per share (yen)

10.70

11.52

12.44

1.74

0.92

Net assets per share (yen)

90.63

―

102.23

11.60―

Shareholders’ equity ratio (%)

30.1

―

31.7

1.6

―

Dividends (yen)

3.50

3.50

3.70

0.20

Dividend payout ratio (%)

32.7

30.4

29.7

Net sales (million yen)

Net income attributable to owners of parent(million yen)

－

0.20

－

*“Partial Amendment of Accounting Standard for Tax Effect Accounting” and other regulations have been applied from the first quarter of the current fiscal year,
As for numbers of cumulative previous 2Q period is retroactively rectified by this accounting standard.

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6

FY3/19 Profit and Loss Statement
FY3/18Amount(Million Yen)

Year on Year
Comparison

FY3/19Component
Ratio
(%)

Amount(Million Yen)

Component
Ratio
(%)

Amount(Million Yen)

Component
Ratio
(%)

Net sales

26,779100.0

29,298

100.0

2,519

9.4

Cost of sales

22,685

84.7

25,119

85.7

2,434

10.7

Gross profit

4,094

15.3

4,178

14.3

84

2.1

SG & A expenses

2,790

10.4

2,647

9.0

- 143

- 5.1

Operating income

1,303

4.9

1,531

5.2

228

17.5

Non-operating revenues

369

1.4

560

1.9

190

51.4

Non-operating expenses

91

0.3

170

0.6

79

87.4

1,582

5.9

1,920

6.6

338

21.4

910

3.4

1,071

3.7

160

17.7

Ordinary income
Net income attributable to owners ofparentCopyright©JP-HOLDINGS, INC. All Rights Reserved.

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FY3/19 Balance Sheet
FY3/18(Million Yen)

FY3/19(Million Yen)

Amount of Change(Million Yen)

7,885

10,458

2,572

Cash and deposits

4,455

6,816

2,360

Accounts receivable - other

2,169

2,491

322

17,873

17,796- 76

10,101

9,897

- 203

473

342

- 130

7,297

7,555

258

25,75828,255

2,496

8,208

7,880

- 328

Short-term loans payable

2,485

2,166

- 319

Current portion of long-term loans payable

1,584

1,570

- 14

Accounts payable - other

9,793

11,424

1,630

8,934

10,4541,520

18,002

19,304

1,301

Total liabilities

7,756

8,950

1,194

Total net assets

25,75828,255

2,496

7,885

10,4582,572

Total current assets

Total fixed assets
Total tangible fixed assets
Total intangible fixed assets
Total Investments and other assets
Total assets
Total Current liabilities

Total fixed liabilities
Long-term loans payable

Total liabilities and net assets*“Partial Amendment of Accounting Standard for Tax Effect Accounting” and other regulations have been applied from the first quarter of the current fiscal year,
As for numbers of cumulative previous 1Q period is retroactively rectified by this accounting standard.

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8

FY3/19 Statement of Cash Flows
FY3/18(Million Yen)

FY3/19(Million Yen)

Year on Year
Comparison(Million Yen)

1,865

1,829

- 36

1,557

1,810

252

668

703

35

23

108

85

Decrease (increase) in accounts receivable - other

- 533

- 297

236

Decrease (increase) in accounts payable - other andaccrued expenses

447

- 14

- 462

- 397

- 624

- 226

Net cash provided by (used in) investing activities- 1,292

- 940

352

Purchase of property, plant and equipment- 1,853- 1,877- 23

Net cash provided by (used in) financing activities

- 135

1,475

1, 611

Proceeds from short-term loans payable

2,100

5,500

3,400

Proceeds from long-term loans payable

1,850

4,000

2,150

Repayments of long-term loans payable- 3,536- 2,799

1,025

438

2,360

1,922

4,455

6,816

2,360

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss

Income taxes (paid) refund

Net Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period

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9

FY3/19 New Openings
FY 3/19 New Openings
Nursery Schools ：17： 4
School Clubs
Total ：21
*Nakano-Ehara Kids’ Club, Nakano Municipal Saginomiya
School Club, Nakano Municipal Yamato School Club andKita Municipal Akabanenishi 5-chome Children’s House
closed on the last day of March 2018.

Tokyo:
7 licensed nursery schools
・Koto-ku Minamisuna No.4 Nursery School・Asc Kanamecho Nursery School・Asc Toneri Nursery School・Asc Higashikasai Nursery School・Asc Fuchuhonmachi Nursery School・Asc Minamikugahara Nursery School・Asc Yakuoji Nursery School

Kanagawa:

Okinawa:
2 company-led nurseries

3 licensed nursery schools
・Asc Kugenumakita Nursery School・Asc Minowa Nursery School
・GENKIDS Shinkoyasu Nursery School・ Asc Akebonokaiho Nursery School・ Asc Noborikawa Nursery School

2 small-scale nursery schools
Shiga:
1 licensed nursery school

Tokyo:

・Asc Wani Nursery School・Asc Toyotama 1-chome Nursery School A・Asc Toyotama 1-chome Nursery School B

4 school clubs
・Kojimachi Kids’ Club・Taisho Primary School After School Club
・Chofu Municipal Chowa Primary School,
School Club・Wakuwaku Takinogawa Momiji
School Club

Osaka:
1 licensed nursery school

Chiba:

・Asc Soneminami Nursery School

1 licensed nursery school・Asc Otakanomori Nursery School

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10No. of Facilities Operated by Region
No. of Facilities Operated (FY3/19)：200
Nursery schools： 72
School clubs： 11Children’s houses： 5
Private school clubs
Kindergarten (Overseas Facility) ： 1
Total ：289

Kyushu・Okinawa
Licensed
nursery schools: 5
Company-led nurseries: 2

Hokkaido
Licensed nurseryschools: 3

Chubu
Licensed
nursery schools: 9
School clubs: 3
Children’s houses: 6

Kinki
Licensed nurseryschools: 8

TohokuLicensed nurseryschools: 11

Kanto
Lic. nursery schools: 136
Small-scale nursery schools: 2
Non-lic. nursery schools: 24
School clubs: 69
Children’s houses: 5
Private school clubs: 5

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Vietnam
Kindergarten:1

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No. of Facilities Operated
FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)

8

10

11

14

16

14

10

10

11

12

28

43

61

71

85

102

118

136

148

160

Small-scale Nursery Schools

0

0

0

0

0

0

0

0

0

2

Tokyo Licensed Schools

24

26

26

26

26

26

26

23

21

21

Company-led Nurseries

0

0

0

0

0

0

0

0

0

2

Non-licensed Municipality Authorized

5

4

4

4

4

4

1

0

0

0

Non-licensed Othernon-licensed

0

0

0

0

0

0

4

3

3

3

Joint Establishment with
Amusement Facilities

1

0

0

0

0

0

0

0

0

0

26

37

39

40

43

46

55

63

71

72

Children's Houses

6

9

7

8

8

8

10

12

12

11

Private School Clubs

0

0

0

0

0

0

0

4

5

5

Overseas Facility

0

0

0

0

0

0

0

0

1

1

98

129

148

163

182

200

224

251

272

289

School Clubs

Total※2016年3月期第2四半期より運営形態別のカウントを見直し、認可保育園（公設民営）3園をその他認可外保育園3園に変更しております*We reviewed the count by management structure in the 2Q of FY3/16 and changed three licensed schools (private-public management) to other non-licensed nursery schools
Number of facilities

Licensed Nursery Schools(Public-private
management)
認可保育園（公設民営）

250

Licensed Nursery Schools
認可保育園（民設民営）(Private
management)

200

TREND OF NURSERIES AND CHILDREN

Number of Children

14,376
13,300

14000
12000

小規模保育事業
Small-scale
Nursery Schools
Tokyo Licensed
東京都認証保育所
Nursery School

企業主導型保育事業
Company-led
Nurseries
Non-licensed
自治体認定保育園
Municipality Authorized
Non-licensed
その他認可外保育園
Other non-licensed

預かり児童数（保育園）Children in Nurseries

16000

10000

150

8000
100

6000
4000

50

2000
0

0
2010年
2011年
2012年
2013年
2014年
2015年
2016年
2017年
2018年
FY3/10FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18
3月期末
3月期末
3月期末
3月期末
3月期末
3月期末
3月期末
3月期末
3月期末

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2019年
FY3/193月末

12

FY3/20 Forecast

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13

FY3/20 Forecast
FY3/19Actual

FY3/20
Forecast

Year on Year
Comparison (%)

Change29,29832,0002,701

9.2

Operating income (million yen)

1,531

1,811

279

18.3

Ordinary income (million yen)

1,920

2,300

380

19.8

Net income attributable to owners of parent(million yen)

1,071

1,212

141

13.2

Net income per share (yen)

12.44

14.08

1.64

－

Dividends (yen)

3.70

3.90

0.20

－

Dividend payout ratio (%)

29.7

27.7

Net sales (million yen)

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－

－

14

FY3/20 New Openings
New Openings as ofApr. 1, 2019
Nursery Schools ：１０
School Clubs： ２
Total ：１２
* Withdrawal from Hoka GO→Club Onarimon and Koto
Kids Club Ichikame upon contract expiration on the last
day of March 2019.
* Private school club AEL Yushima closed on the last dayof March 2019.
* Asc Ikegami Nursery School (Tokyo licensed nurseryschool) became a licensed nursery school, and Asc
Toyotama 1-chome Nursery School A, B (small-scalenursery schools) were consolidated into a licensed
nursery school on April 1, 2019.
* Kawasaki Miyamaedaira Nursery School (public-private
management) transitioned to private management,
operated as Miyamaedaira Nursery School.

No. of Facilities Operated (Apr. 1, 2019)
Nursery Schools：２０９School clubs： ７２Children’s houses： １１
Private school clubs：
４
Kindergarten (Overseas Facility)：１
Total：２９７Tokyo
8 licensed nursery schools

Shiga
1 licensed nursery schools
・Asc Otsukyo Nursery School・Asc Ogi Nursery School・Asc Yukigaya Nursery School
・Koto-ku ojima No.5 Nursery School・Asc Kitashinjuku Nursery School・Asc Kamitakaido Nursery School・Asc Midori Nursery School・Asc Hoya Nursery School・Asc Fuchukatamachi Nursery School
1 Other non-licensed nursery school・Shinjuku-ku Nursery Room Edogawa
Nursery SchoolTokyo
2 school clubs
・Wakuwaku Fukuro Hiroba/
Akakita Hibari Club No.2
・Wakuwaku Akanishi Hiroba/
Akabanedai-nishi Elementary School
Club No.2
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15

Corporate Strategy for
FY3/20

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16

Business Environment
Surrounding theCompany

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17

Prefecture

Current Waiting List Situation
National Waiting List Map (April 1, 2018)


The number of children on waiting lists as of Apr.
2018 is 19,895 (6,186 decrease YoY).
The problem of children on waiting lists remains
serious. This is especially so in the Tokyo
metropolitan area and prefectures where major
cities (e.g. ordinance-designated cities) are located.
(Refer to the map on the right.)

Current as of April 1 ,2018

No of Prefectures

Less than 100
100 or more but less than 500
500 or more less than 1,000
1,000 or more less than 3,000
3,000 or more but less than 5,000
5,000 or more

(24)
(13)
(15)
(14)
( 0)
( 1)

Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2018)

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Hokkaido
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima
KagawaEhime
Kochi
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
OkinawaTotal

No. of Children
on the waiting
List
129
0
145
613
37
46
371
386
41
28
1,552
1,392
5,414
864
1
0
0
18
0
50
0
325
238
80
439
75
677
1,988
201
16
0
30
698
207
36
33
108
49
51
995
33
157
182
13
63
244
1,870

19,89518

Current Nursery School Teacher Shortage Situation

8The effective opening to application ratio for nursery school teachers remains at ahigh level. There continues to be a shortage of nursery school teachers on anationwide scale.

The effective opening to application ratio for nursery school teachers in Tokyo isover 6-fold. The employment situation in the metropolitan area remains extremely
difficult.
Effective Opening to Application Ratio for Nursery School teachers(X)
6.96

7

●

Tokyo

Nationwide

6
5
4

3.58
●

3
2
1
0

Source: Ministry of Health, Labour and Welfare Employment Security Bureau’s General job placements (Report on Employment Service)

Copyright©JP-HOLDINGS,INC All Rights Reserved.

19International Comparison of Initiatives to Address Declining Birth Rates
 OECD countries are targeting public subsidies for childcare charges amounting to 1% ofGDP, but 0.4% in Japan.
Ratios of public investment in early childhood education and childcare to GDP
FranceGermany
Japan
South Korea

NorwaySwedenBritainAmerica(Year)(Document)

Source: International Initiatives to Address Declining Birthrates (February 28, 2014)
Policy promotion team, Task force for breaking through the fertility crisis (2nd term), Cabinet OfficeMika Ikemoto, The Japan Research Institute, Limited
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20

JP Holdings is the largest operator in the Industry

We have significantly pulled away from our rivals to stay as the largest operator in theindustry. We have held the number one spot for sales in the childcare services industry forthe past five years in a row.



Our strengths lie in the wealth of our management, results (number, scale, location andform), our relationship with major municipalities in Japan and management that makes the
maximum use of economies of scale to achieve a reduction in costs.
Sales of Companies in the Childcare Industry(Unit: million yen)
30000
JP-HOLDINGS
弊社

25000

Rival A
競合A社
Rival B
競合B社
Rival C
競合C社

20000

Rival D
競合D社
Rival E
競合E社

15000

10000

5000

*Rival C’s sales is estimated number by JPHD
0

2013年
2013

2014年
2014

2015年
2015

2016年
2016

2017年
2017

2018年
2018

Source: Based on the past six years of the Nikkei MJ’s Service Industry Survey
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21

Business Environment
Measures to Cope ｗｉｔｈ Current and Future Changes of Environment■Children on Waiting Lists
Present to Future
・Demand of nursery is increasing because of
women’s participation in society and this issue
becomes serious
・In the future children on waiting lists will
decrease by countermeasures of government andmunicipal units, impact of declining birthrate■Change of Child-raising Style due
to Women’s Participation in Society
・Women’s participation is increasing every year
and even in rural areas dual income families are
increasing
・Fathers’ involvement (child-care leave) is
increasing■Measures of Government andMunicipal Units
・Various measures are promoted in advance toeliminate children on waiting lists
・Further salary increase for teachers・Free fees measures (Oct. 2019)

Measures to
Cope wit
Change ofEnvironment

Qualitative
Improvement ofChild-raising
Establish New
Child-raising
Business■Declining Birth Rate・In spite of gov’t measures birth rate is declining
・Combined with aging problem, demographic
difference between Tokyo metropolitan area
and rural area exists■Complex Environment
・Currently cope with needs to solve children on
waiting lists issue, but in the future forecast
serious competitive environment due to impact
of declining birth rate etc.
・Seek to exit from homogenization■Problems of Child-raising
Business
Measures to
Avoid
Impact from
Outside・Performance is impacted by number of children,
gov’t and municipal policies, regulation changes
such as declining birth rate, decreasing children on
waiting lists, change of subsidy etc.
・Shortage of nursery school teachers andintensifying competition to secure personnel(ratio of 7 openings to every application in Tokyo)

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22

Medium- to Long-term Business Environment
Whereas JPHD’s Child-raising Business is achieving growth as various countermeasures are being promoted
by government and municipal units to eliminate the problem of children on waiting lists, challenges such as
shortages of nursery school teachers and the declining birthrate need to be addressed.

Ｓtrengths

強み■ Competitive advantages as a leading company in child-raising
support services• Track record and expertise of the Child-raising Business (sizecombined with reliability)• Approx. 20,000 children, and employment exceeding approx. 6,000
childcare workers■ Group-wide, comprehensive service structure• Centralized management of the Child-raising Business■ Safety and security• Framework offering safety and security free of serious accidents

Ｏ pportunities

機会■ Government and municipal units are promoting various
measures to eliminate the problem of children on waiting lists• Subsidies are increasing and the business environment is otherwise
conducive to opening new facilities■ Number of service users increasing due to introductions of freeearly childhood education and childcare beginning in October
2019• Increase in nursery users amid the likelihood of a higher percentageof women in the workforce due to free early childhood educationand childcare

Ｗ eaknesses

弱み■ Programs of government and municipal units, and changes ingovernment policy• Effects of changes in programs and government policy on
subsidies• Effects of systemic changes with respect to operations subject tolicensing■ Chronic shortage of nursery school teachers• Chronic shortage of nursery school teachers caused by factors
such as the opening of new facilities to eliminate the problem ofchildren on waiting lists and increasing numbers of children
accepted to existing facilities

Ｔhreats脅威■ Decreasing childcare demand in the future associated with Japan’s
declining birthrate• Guardians are able to be selective due to the declining birthrate■ Market entry from different industries, M&As
• Market entry from players in the education sector, M&As by
players from the same and different industries■ Changes in programs of government and municipal units andgovernment policy• Decrease in subsidies and systemic change

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23

Corporate Strategy(Long-term/Medium-term/Single-year Plan)

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24

Management Policy for FY3/20
Aiming to provide “the highest quality child-raising support services in Japan”

Fulfill High Quality
Nursery BusinessContinue Confidence Building
with Stakeholders

ExpandCurrent
Business

Enhance
Relationshipwith Society

Improve Enterprise Value
through Child-raising
Business

Enhance Governance& Compliance

Optimize Enterprise
Resources
Reform Organization・Develop Human
Resources

Provide Environmentof Nurturing Children
with Relief

Strengthen
Management
Base

New Strategy Long term Management
for Growth
VisionMedium termManagement Plan
(3 years)

Change Corporate Culture“Hands on Approach” “Employee Participation in Management System”“Friendly Working Environment”
Copyright©JP-HOLDINGS,INC All Rights Reserved.

25

Target Performance Indicators

Medium-termManagement
Targets

Long-termManagement Vision

Long-term Management Vision 2025：Fulfill Consolidated Sales 100 BYen
Aiming to become “the highest quality child-raising services
company in Japan”

FY3/25

Existing Business 50.0 billion yen
New Business10.0 billion yen
Business or Capital Alliance40.0 billion yen

Further improve quality of child raising services
Create new businesses, form alliances and partnerships withnursery enterprises

FY3/20FY3/21

Net sales 32.0 billion yen
Ordinary income 2.3 billon yen
Net sales 35.0 billion yen
Ordinary income 2.7 billion yen
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

26

Medium- to Long-term Corporate Strategy
Priority Measures to Fulfill Management Vision

GrowthFurther Qualitative
Growth of Childraising

Expand Existing
Business[Medium-term Management Plan toestablish foundations for growth]• Expand the Child-raising Business• Further improve childcare quality• Promote work-style reforms• Develop and promote new businesses

Strengthen
Management
through Business
Structure Reforms

Promote and expand
growth strategy

Create New
Business Value

FY3/2025

FY3/21
FY3/19FY3/18

Steer towardbusiness growth[Promotion and expansion of growth strategy]• Increase volume of Child-raising Business andimprove quality• Promote and expand new businesses• Actively promote capital and business alliancesTime
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

27

Long-term Management Vision
The Second Founding Stage

Expand Business Scale
Grow as leading company ofchild-raising

Promote Growth
Strategy

Develop Infrastructure
targeting FY3/25 ending

Consolidated
Sales
100BYenFulfill Consolidated Sales 100BYen on FY3/25 ending
40BY

Business orCapitalAlliance

10BY

New
Business

35BY
32BY
29.2BY

50BY

26.7BY
22.7BY

Existing
Child-raising
Business

20.5BY
17.8BYFY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

Medium-termManagement Plan

FY3/22

FY3/23

FY3/24

FY3/25

Promote to Fulfill Sales 100BY

Copyright©JP-HOLDINGS,INC All Rights Reserved.

28

Corporate Strategy for FY3/20
JPHD will establish a management base geared to achieving the Long-term Management Vision and theMedium-term Management Plan, and develop new businesses.

Increasing the number of children
admitted

１

Secure nursery school teachers and otherprofessional talent

２

Curb employee resignations

Strengthening management andpromotion frameworks

３

Administer nursery schools by geographic
region (introduce regional block framework)

Restructure organization andawareness raising

４

Implement team building

５

Develop various forms of content
coordinated with the consulting service
business and perform test marketing

Opening of new facilities andconsignment
Increase rates of capacity utilization
at existing facilities

Creating new businesses
Develop new businesses andstrengthen external sales

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

29

FY3/20 Measure (1) “Secure nursery school teachers”
Measures for securing nursery school teachers with the aims of achieving sustainable growth andeliminating the problem of children on waiting lists
Nursery school teacher recruitment target
523 teachers■New graduates hired: 248 teachers(joined on April 1, 2019)■ Target for mid-career employment: 275 teachers

Effective opening to application ratio andannual salary for nursery school teachers■Effective opening to application ratio for nursery school

teachers in Tokyo

6.61 to 1

6.96 to 1

Dec. 2017

Dec. 2018

3,579,000 yen
36.8 years old
2018 national avg.

∧

■National average annual salary vs. that of JPHD

4,007,000 yen
31.7 years old【Salaries of nursery school teachers 】• JPHD implementing improvements in salaries andbenefits in conjunction with such improvements bygovernment and municipal units• Develop workplace environment and re-verify personnel
system upon assessing problems and challenges ofrespective work sites【Recruitment】• Enhance and promote local recruitment
Provide employee dormitories (7 facilities, monthly rentof 10,000 yen)
• Modify website focused on status of job application• Upgrade employee referral system
Scheme to provide financial incentive when an employee
joins the company by means of referral

2018 JPHD avg.

• Intensifying market for securing nurseryschool teachers⇒ Municipal units initiatives to eliminate waiting times⇒ Free early childhood education and childcare (increasein percentage of women in the workforce)• Surge in recruitment fees to attract talent【Promotion of Work Style Reforms】• Reduce burden of office works through ICT• Maintain support framework to enable employees toconcentrate on childcare and on-site work
• Overhaul of personnel system and labor affairs• Maintain framework for problem solving using a hands-on
approach

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

30

Our Plan to Secure Nursery School Teachers Utilize national and municipal subsidy and continue to improve wages.
 From Nov 2017, additional measures were introduced ※Provided retroactively from Apr. 2017(1)Implemented salary increase by regions(Max 480 thousand ¥/y)(2)Newly invented salary by roles(Max 480 thousand ¥/y)(3)Salary increase for directors and chiefs of nurseries(300 thousand ¥/y)
 In FY03/2019, the company paid an annual salary of 4.00 M¥ (average age:31.7) versus
the national average of 3.57 M¥ (average age:36.8)(10,000 Yen)

420
410
400
390
380
370
360
350
340
330
320
310
300
290
280

AVERAGE ANNUAL SALARY OF NURSERY SCHOOL TEACHERS
400.7

374.3
354.1

357.9

358.6
342.1

328.4

332.4
324.9

324.2

331.4

323.9

323.3

326.8

2015年
2015

2016年
2016

316.7

322.5

314.6

310.8

2010年
2010

2011年
2011

315.0

300.9

309.8

287.1

2008年
2008

2009年
2009

2012年
2012

2013年
2013

2014年
2014

2017年
2017

2018年
2018

※ As for national average, JPHD made numbers based on Ministry of Health, Labour and Welfare”Basic Survey on Wage Structure”「 Contractual cash earnings as of each June 」×12＋「 Annual special cash earnings of each previous year 」※ JPHD’s average annual salary is based on full year base.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

31

Recruitment of Nursery School Teachers

Nursery School
Teacher
Non qualified

FY3/17

FY3/18

FY3/19FY3/20Joined on
Apr.1

New Graduates

178

197

247

276

248

Mid career
employment

219

241

327

325

145

－

23

32

46

26

New Graduates* After joining JPHD non qualified
graduates are expected andassisted to acquire nurseryschool teacher qualification.
Started this recruitment style
from FY2016* Includes seconded employees
to associated companies.

Trend of Employee Numbers in childrearing Business

7000
6000

FY3/16(*Include employees of school clubs stuffs, nutritionists, etc. other than nursery school teachers)■ Employees
子育て支援事業 社員■Part-time workers

5000

4000
3000
2000
1000
0
FY3/0８

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

FY3/17

FY3/18

FY3/1932

FY3/20 Measure (2) “Curb resignations”
Basic
Concept

JP Holdings tackle with “ Work Style Reform” as entire company to become “ Most
Friendly Working Company” and promote the improvement of operations and working
environment.
Promote a focus on nursery school teachers with sights set on curbing staff
resignations and increasing number of children admitted

Directors make roundsof facilities to compile
list of issues
Advisory committee
established to address
issuesOperational improvement
and streamlining
Improvement of workplaceenvironments
Personnel education andtraining
Management philosophy
and childcare policy
Personnel and labor
improvements

Measures basedon voices offieldsTransmit and ShareInformation
Awareness
Raising

Efficient Operations
and Improvement ofWorking Environment
・Establish committee for
efficient operations andimprove working environment
・Establish committees targetingreform and improvement toformulate various measuresand systems

・Utilize internal meetings and PR tofulfill educational activities andsharing know-how

Revise Personnel System
Business
ReformSystemReform andInfrastructure
Development

・Enable career up in system
・Revise warfare system
・Revise work system

Infrastructure
Development
・Equip IT system
・ICT etc.

Fulfill Friendly Working Environment
Improve Employees Motivation
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

33

FY3/20 No. of Children Accepted at Facilities (plan)
Increase the number of children accepted at existing facilities by securing nursery school
teachers, rather than sticking to the notion of new openings

As of Apr. 1, 2018
Number of Children in
Nursery Schools

14,058

Increase of997

15,055

New openings ofnursery schools
FY3/19SecureNursery
SchoolTeachers

As of Apr. 1, 2019
Number of Children in
Nursery Schools

17 ⇒ 12 FY3/20

Increase the number of children acceptedby securing nursery school teachers andassigning them to existing schools

Provide further high quality childraising services
Curb
Resignations

Work Style
ReformAdministrationand Support
System(Regional Block
Framework)

Team
Building(AwarenessRaising)

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

34

FY3/20 Measure (3) “Regional block framework”
With regard to nursery schools, JPHD aims to improve its operational capabilities andfurther heighten its childcare quality using a regional block framework consisting of fivegeographic areas nationwide.
Management organization of

Head of Block

Japan Nursery Service Inc.

Organizationof respective
regional
blocks(April 1, 2019)

Person in chargeof implementation

Regional block
facility

Deputy Head of
Block“School Club,Children’s House
Block”
Centralized managementof nationwide operations(School Club 72 facilities/
Children‘s House 11
facilities)

Western Japan Block23

Hokkaido/Tohoku
Block
14

Tokyo Block84

Chiba/Saitama Block
19
Kanagawa Block62
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

35

FY3/20 Measure (4) “ Team building”
With its sights set on attaining sustainable growth, JPHD will improve its results throughorganizational innovation brought about through team building that involves combining
mutual opinions and ideas, and gaining first-hand experience.

Team building
Top down
Innovation

Approx. 6,000
employees take partin management

Fully exercisingabilities throughcapacity to think and
act

Team

Shared goals/objectives and incentives

Cooperation and communication
Organizational contributions and a learningoriented organization
Initiatives to actively address problems

Team awards

Bottom up

Expansion oftraining system

Team

Problem resolution & improvement / achievement of
earnings forecasts* The term “team building” refers to initiatives where those involved aim to unite as a team while each member
independently draws on his or her capabilities and diversity for the purpose of achieving the team’s goals and objectives.
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

36

FY3/20 Measure (5) “ Develop and promote new business”
JPHD will promote external sales utilizing the Group’s know-how and will develop new businesses.
Mutualcooperation

Existing
business

Consulting Service

MutualFurther expanding and strengthening consulting services for new openings and cooperation(FY3/19: Ongoing 8 companies, New 6 companies, Total 14 companies)

operations of childrearing facilities

Since previous
fiscal year

Since previous
fiscal year
New
Sales of fixtures for opening
businesschildrearing facilities• Packaged fixtures for opening schools soldto companies planning company-led
nursery businesses (products mirroring
input of JPHD’s nursery school teachers)• As necessary, approach taken that involves
simultaneously providing support for
opening schools and other services

Newbusiness

Sales of proprietary programs(English, Gymnastics andeurhythmics)

Future business development

Newbusiness• Sales of JPHD’s proprietary English,
Gymnastics, and Eurhythmics program
packages to nursery schools outside theGroup

Strengthen framework of externalsales linked to consulting

Develop and promote new
businesses① Develop new business utilizing
know-how② Build membership businesstargeting nursery children③ Create new businesses incooperation with education-relatedcompanies, etc.

Create new business development
Newbusiness

Development and external sales
involving new business in therealm of education and childraising

New businesses development initiatives
utilizing in-house resources• Promote development from various angles including administration pertaining to safety andsecurity, planning that particularly draws on aspects of facilities, and planning development of
products through experience gained in providing child-rearing support at respective sites ofoperation.

Educationrelatedcompanies

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

Different
industries

Nurseryrelatedcompanies

37

Medium-term Management Plan: Promote New Businesses
Aim ofMembership
Services

With keywords “Discovery”⇒”Learn”⇒”Use”, we provide various hands
on programs to prompt healthy growth of children, develop every single
child’s personality, exploit his/her ability

Examples of program
Planning of Hands on Tour which isDifferent from Ordinary Camps and Tourby Focusing on “Discovery” “Learn”“Create” etc.

Extraordinary
Experience
Programs【Progress Status】
EnterprisePartnership• Program development
and verification• System verification

EnterprisePartnership
Examples of program

Examples of program

Provide Customized
Lessons of English,
Gymnastics,
Eurhythmics etc.

Ordinary
Experience
Programs

Membership
ServiceEnterprisePartnership

ProvideProducts
andServices

Support Purchasingof Necessities andProvide Services
depending on age etc.

※Enlarge services in series

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

38

Medium-term Management Plan Forecast (Consolidated）
Sales Revenue(New
Openings)

Ordinary Income

New Facilities(Total)

25

35BY
32BY

29.2BY

2.7BY
1.9BY
9.4%
up

9.2%
Up

1.5BY

21.4% Up
Ordinary
Income Rate
6.6%

2.3BY

17.4% Up

19.8% Up

Ordinary
Income Rate
7.7%

300

Ordinary
Income Rate
7.2%

17

250

15
15

200

12

11

150

9

10

4

5

5

5

2019年
FY3/193月期

2020年
FY3/203月期

 Priority measure

2021年
FY3/21
3月期

2018年
FY3/183月期

2019年
FY3/193月期

2020年
FY3/20
3月期

2021年
FY3/21
3月期

100
50

1
2018年
FY3/18
3月期

350

20

26.7BY

9.4%
Up

289

272

322

302

0

0

2018年 FY3/19
2019年
FY3/18
3月期

3月期

2020年
FY3/20

2021年
FY3/213月期

3月期

Nursery Schools
School Clubs, Children’s Houses
Kindergarten (Overseas Facility)
Total

1. Strengthen safety measures and further improve the quality of child-raising
2. Increase the number of children admitted by opening new facilities and increasing the number of nursery school
teachers at existing facilities
3. Expand investment in human resources (reinforcement of recruitment activities, review of personnel system)
4. Ensure thorough compliance and further strengthen corporate governance
5. Reorganization aimed at improving management and earnings management systems and management efficiency
6. Expand earnings base by developing and promoting new businesses
7. Synergy measures (business alliances and capital alliances) in the child-raising support and education industries

Copyright©JP-HOLDINGS,INC All Rights Reserved.

39

Medium-term Management Plan Forecast (Consolidated)
FY3/20FY3/21

Sales Forecast

32BYen35BYenOrdinary Income Forecast

2.3BYen

2.7BYen Forecast of New Opening
Nursery Schools
Estimated number of
openings

Estimated number ofchildren admitted
in the first year

Estimated number ofschool clubs andchildren's houses consigned

FY3/20

12 facilities

580 children

5 facilities

FY3/21

15 facilities

630 children

5 facilities*The estimated number of nursery schools, and estimated number of school clubs and children's houses consigned for the
fiscal year ending March 2020 includes the number of facilities that were opened in April 2019

Copyright©JP-HOLDINGS,INC All Rights Reserved.

40

ESG Initiatives
ESG initiatives to achieve sustainable growth and improved
enterprise value
Parents
ChildrenEmployees

The highest quality child-raising
services company in Japan
Sustainable growth/confidence

Shareholders

Business
partners

E

S

G

Environment(環境)Social
(社会)

Governance(企業統治)

・Environmental pollution
・Global warming, etc.

・Improvements in working
environment
・Contribution to local societies, etc.

・Fair and transparent governancesystem・Internal control• Equipment for environmentally soundfacilities- LED lighting- Yukarela floor-wide radiant air coolingand heating system- Ecocarat material that reduces harmful
substances- Solaton ceiling materials with Eco Markcertification

・Work Style Reforms- Improvement in addressing issues affecting theworkplace environment upon establishing anadvisory committee- Improvement in salaries/benefits of on-site
employees• Helping facilitate women’s participation insociety in terms of addressing the issue ofchildcare facility waiting lists by opening
childcare facilities in respective regions• Three Outside Directors and four Outside
Audit and Supervisory Board Members
acting as independent officers• Harassment eradication declaration• Development of risk management
practices
・Compliance Committee
・Internal whistle-blowing system
・Compliance training

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

41

Appendix

Copyright©JP-HOLDINGS,INC All Rights Reserved.

42

Company Overview

Copyright©JP-HOLDINGS,INC All Rights Reserved.

43

Profile
Company Name

JP-HOLDINGS, INC.

Listed Market

First Section of the Tokyo Stock Exchange (Securities code: 2749)

Location
Date of
Establishment
CapitalHead Office: 17F Chikusa New Tower Bldg., 3-15-31 Aoi, Higashi-ku, Nagoya-shi Aichi
Tokyo Office: 5F Shinagawa Season Terrace, 1-2-70 Konan, Minato-ku Tokyo
March 31, 1993
1,603.955 million yen

Representative

Koichiro Furukawa, President and Representative Director

No. of Employees

Employees: 3,481 / Part-time workers: 2,520 *As of March.-end 2019Japan Nursery Service Inc. (Capital stock: 99 million yen / Wholly owned subsidiary)
J Kitchen Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
J Cast Inc. (Capital stock: 10.4 million yen / Wholly owned subsidiary)

Consolidated
Subsidiaries

J Planning Sale Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
Japan Nursery Institute for General Research Inc. (Capital stock: 10 million yen / Wholly owned
subsidiary)
Amenity Life Inc. (Capital stock: 70 million yen / Wholly owned subsidiary)
COHAS VIETNAM CO., LTD (Capital stock: 6,834,million VND / Wholly owned subsidiary）
Nursery Service (Japan Nursery Service, Amenity Life, and COHAS VIETNAM )Gymnastics, English and Eurhythmics Schools Contracting Service (J Cast)

Business Areas

Food Service (J Kitchen)
Distribution Service (J Planning Sale)
Researching , Training and Consulting Service (Japan Nursery Institute for General Research)

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

44

Corporate Philosophy
 Corporate Message
For the smiles of children…
Smiles of children: This is our pride that cannot be replaced. We always provide childcare
where children who will lead the future can develop generosity as well as words andemotions to express themselves in a safe environment.
We strive for continual self-improvement to be models to children. We also strive toconnect with children with passion and a sense of responsibility, and to acquire strong
ethical values and social conscience.

 Management Philosophy
1.Number one priority: Safety and security
2.Childcare that remains memorable forever to users
3.Provision of high-quality services needed by users
4.Creation of work-friendly environments
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

45

Business Summary Operation of Childrearing Facilities (Public and Private)
Public Facilities = Subsidy from Gov’t and Municipalities
Licensed
Nursery School

Private Facilities= Subsidy from Gov’t
and Municipalities No

YesTokyo Licensed
Nursery School

School Club,Children's House

Municipality

Municipality

Private School Club

ParentMunicipality

ParentLicensed schools(Public-private management)

Licensed schools(Private management)

Revenue from User

Revenue from User

(Burden of Actual Cost)(Burden of Actual Cost)

Structureof SalesSubsidy（DesignatedManagement Fee）
※depends on municipality

Subsidy（Official Price）+（Addition by
Municipality）※depends on municipality

JP

Contract

ParentUsage FeeJP

ParentUsage FeeContract

Contract
Form

JP

JP

Revenue from User
Revenue from User
(Childcare Charge +Burden of Actual Cost)

Subsidy（Tokyo Met. Gov’t）+（Addition by
Municipality）(Burden of Actual Cost)

Subsidy（ DesignatedManagement Fee）
or
（Trustee Fee）

Revenue from
User
(Childcare Charge +Burden of Actual
Cost）※depends on municipality※depends on municipality

Copyright©JP-HOLDINGS,INC All Rights Reserved.

46

Comparison of Kindergartens, Nursery Schools and Licensed Children’s Schools
Kindergarten

Nursery School

Licensed Children’s School(Kindergarten/Nursery School
Cooperation type)Act on Child Education and Childcare Support (Defines the framework of cross-ministerial and unified payments in the Cabinet
Office)Underlying
Laws/Regulations

Section 3 of the School Education Act(Under the jurisdiction of the Ministry of
Education, Culture, Sports, Science andTechnology)

Article 7 (1) of the Child Welfare Act(Under the jurisdiction of the Ministry of
Health, Labour and Welfare)

Article 7 (1) of the Child Welfare Act
Article 2 (7) of the Licensed Children’s
School Law(Under the jurisdiction of the Ministry of
Education, Culture, Sports, Scienceand Technology & the Ministry of
Health, Labour and Welfare)Type of Facility

SchoolChild welfare facility

School and child welfare facility

Target Children*

1st certification

2nd and 3rd certification

1st, 2nd and 3rd certification

Kindergarten Education Guidelines

Nursery School Childcare Guidelines

Licensed Children’s School Education
and Childcare Guidelines

Basis of Education andChildcare Content

Daily Education andChildcare Time

4 hours as standard

8 hours as standard

Hours depending on the children (8hours for children requiring childcare
and 4 hours for children requiring
education) as standard

Number of Education
and Childcare Days ina Year39 weeks or more

No stipulations

Depending on the regional conditions*1st certification: Children of 3 years old or older requiring education / 2nd certification: Children of 3 years old or older requiring childcare / 3rd certification:
Children under 3 years old requiring childcare
Copyright©JP-HOLDINGS,INC All Rights Reserved.

47

Overview of School Clubs and Children’s Houses
School Clubs (Broad Definition)
Children’s Houses

After-school Children’s Health Promotion
Business

After-school Children’s Classroom Promotion
Business

Underlying
Laws/Regulations

Article 6-3 (2) of the Child Welfare Act(Under the jurisdiction of the Ministry of
Health, Labour and Welfare)

Implementation of After-school Children’s Plan
Promotion Business(Under the jurisdiction of the Ministry of
Education, Culture, Sports, Science andTechnology)

Article 40 of the Child Welfare Act(Under the jurisdiction of the Ministryof Health, Labour and Welfare)

Nature of the Facility

The aim is to provide a place forappropriate fun and lifestyles for children
enrolled in elementary school whoseparents are not at home after school due towork and foster them healthily by using afacility such as child welfare facilities after
school.

This aims to establish safe and secure activity
bases (locations) for children using spareclassrooms in schools after hours or on theweekends. These provide opportunities forlearning and a variety of experiences/exchange
activities for children on a regular and continuous
basis with the participation of local residents.

This aims to offer healthy fun tochildren in the community, promote
their health and nurture emotions.
(one of children’s recreational
facilities)

Target Children

Grades 1 to 3 in elementary school(However, it is also possible to target
children in special support elementary
schools and elementary school children ingrades 4 and above)

All children in the community (regardless ofwhether infants, children or students andregardless of whether their parents work or not)All children under the age of 18

Basis of Education andChildcare Content

After-school Children’s Health Promotion
Business Action Guidelines
After-school Children’s Club Guidelines

After-school Children’s Classroom Promotion
Business Action Guidelines

Children’s House Guidelines

Daily Education andChildcare Time

3 hours or more on average(However, this is 8 hours or more as a
general rule on Saturdays, school holidays
and long-term holiday periods)

Number of Education
and Childcare Days in aYear

250 days or more as a general rule
(However, this can be 200 days or more
depending on the form of the user’s needs)

4 hours or less on average(However, this is 8 hours or less as a general ruleon Saturdays, school holidays and long-term
holiday periods)

Set in accordance with the situationin the community (e.g. the age of thetarget children and convenience ofparents)

Less than 250 days as a general rule

Copyright©JP-HOLDINGS,INC All Rights Reserved.

48

Image of JP Holdings’ Group Structure
J CastJ Kitchen

Teacher

Nurseryschool teacher

EnglishGymnastics
Gymnastics
Eurhythmics
EnglishNutritionist
Lunch

Eurhythmics
Childcaregoods

J Planning Sale

Overseas
VietnamChildcare

Japan Nursery
Service

We will take full advantage
of group synergies –from facilities and equipment
to the quality improvementof staff

Researching, Training and Consulting Service
Training

Japan Nursery Institute forGeneral ResearchChildcare

Copyright©JP-HOLDINGS,INC All Rights Reserved.

49

Results Trends

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

50

Consolidated Results (Highlights)
Net sales(million yen)
Operating income(million yen)
Ordinary income(million yen)
Net income attributableto owners of parent(million yen)
Net income per share(Yen)

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19

7,272

8,194

9,166

11,867

13,78915,747

17,86820,552

22,79926,77929,298

521

738

839

1,114

1,285

1,234

1,345

1,732

1,168

1,303

1,531

707

800

866

1,150

1,325

1,460

1,550

1,781

1,350

1,582

1,920

440

444

500

653

717

837

904

1,071

661

910

1,071

5.98

6.06

6.67

7.83

8.60

10.03

10.84

12.84

7.87

10.70

12.44

* Net income per share is the amount that reflects the stock split.
(million yen)(million yen)

35,000Ordinary
営業利益

Net sales
売上高

income(right axis)(left axis)

30,0002500

Operating income
経常利益(right axis)

2000

25,0001500

20,00015,0001000

10,000
500
5,000
0

0
2008年
FY3/083月期

2009年
FY3/093月期

2010年
FY/3/103月期

2011年
FY3/11
3月期

2012年
FY3/12
3月期

2013年
FY3/133月期

2014年
FY3/143月期

2015年
FY3/153月期

2016年
FY3/163月期

Copyright©JP-HOLDINGS,INC All Rights Reserved.

2017年
FY3/173月期

2018年
FY3/183月期

2019年
FY3/193月期

51

Consolidated Results (Balance Sheet / Statement of Cash Flows)
FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19
Total assets(million yen)

4,275

5,763

9,432

9,808 10,876 13,521 18,882 21,126 24,002

25,761 28,255

Net assets(million yen)

1,546

1,903

3,559

3,977

4,452

5,034

5,606

6,279

6,854

7,756

8,950

Shareholders’ equity
ratio
(%)

36.1

32.9

37.7

40.5

40.9

37.2

29.7

29.7

28.5

30.1

31.7

FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19
Cash flows fromoperating activities(million yen)

672

378

Cash flows frominvesting activities(million yen)

- 363

Cash flows fromfinancing activities(million yen)
Year-end balance of
cash and cash
equivalents(million yen)

915

1,205

1,173

1,038

1,294

1,878

1,865

1,829

- 906 - 1,808- 821 - 1,268 - 3,638 - 3,959 - 2,449 - 3,305- 1,292

- 940

- 157

412

2,473

- 219

514

1,220

3,748

1,553

1,646

- 135

1,475

1,137

1,022

2,602

2,768

3,188

1,808

2,891

3,798

4,017

4,455

6,816

Copyright©JP-HOLDINGS,INC All Rights Reserved.

1,804

52

Dividends
The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio of around
30% while maintaining the necessary internal reserves for future business development and to strengthen ourmanagement structure.

FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Amount ofdividend per
share
(yen)

1.90

Payout ratio
(%)

31.7

2.00

33.0

2.90

3.00

Commemor
ative
dividend:
0.50 yen

Commemor
ative
dividend:
0.50 yen

43.4

38.3

3.20

3.60

4.00

5.00

2.50

3.50

3.70

37.2

35.9

36.9

38.9

31.8

32.7

29.7

The amount of dividend per share reflects the stock split.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

53

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:
15-31, Aoi 3-chome, Higashi-ku, Nagoya-shi, Aichi
JP-HOLDINGS, INC.

Akihiko Fukuoka, Director
TEL: 052-933-5419 FAX: 052-933-5163