Summary of Business Results for the First Quarter Ended June 30, 2023
[Japan GAAP] (Consolidated)
August 10, 2023
Company
JP-HOLDINGS, INC.
Stock Code2749
URL: https://www.jp-holdings. co.jp
Representative
Tohru Sakai, President and Representative Director
Contact
Ryoji Tsutsumi, Director
Expected date of filing of annual securities report: August 10, 2023
Preparation of supplementary financial document: None
Results briefing: None

Listed on the TSE Prime
T E L: +81-52-933-5419
Expected starting date of dividend payment: -（Rounded down to million yen）

1. Consolidated business results for the three months ended June 2023
(April 1, 2023 through June 30, 2023)(1) Consolidated results of operations
Net sales

Operating income(% change from the previous corresponding period)
Net income attributable toOrdinary income
owners of parent

Million yen%
Million yen%
Three months ended Jun. 2023
8,956
4.2
868
19.6
Three months ended Jun. 2022
8,596
2.7
726
307.6
(Note) Comprehensive income
Three months ended June 2023: 569 million yen (21.5%)
Three months ended June 2022: 468 million yen (286.7%)
Net income
Diluted net income perper share
share
Yen
Yen
6.72
Three months ended Jun. 2023
5.55
Three months ended Jun. 2022

Million yen
877
739

%
18.7
296.1

Million yen
572
485

%
18.0
359.1

(2) Consolidated financial position
Total assets

Net assets

Million yen
35,086
As of Jun. 30, 2023
35,694As of Mar. 31, 2023
(Reference) Shareholders’ equity
As of June 30, 2023: 13,642 million yen
As of March 31, 2023: 13,584 million yen

Million yen
13,642
13,584

Shareholders’ equity
ratio
%
38.9
38.1

2. Dividends
End of 1Q

End of 2Q
Yen
-

Yen
0.00

Year ended Mar. 2023
Year ending Mar. 2024
Year ending Mar. 2024 (forecast)
0.00(Note) Revisions to dividend forecast for the current quarter: None
Breakdown of year-end dividend for the fiscal year ended March 2023
Ordinary dividend: 5.00 yen, Commemorative dividend: 1.00 yen

Annual dividend
End of 3Q
Yen-

Year-end

-

Total
Yen
6.00

Yen
6.00

6.00

6.00

3．Forecast of consolidated business results for the fiscal year ending March 2024
(April 1, 2023 through March 31, 2024)(% change from the previous corresponding period)
Net sales
Million yen

Operating income%

Million yen

Year ending Mar. 2024
36,3902.5
3,820(Note) Revisions to business forecast for the current quarter: None―1―

Net income attributable toowners of parent

Ordinary income

Net income
per share%

Million yen%

Million yen

%

Yen

4.2

3,842

2.6

2,497

-7.5

29.32

*Notes(1) Changes in significant subsidiaries during the period: None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: Nnne: None: None: None(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of June 30, 2023
87,849,400 shares
As of March 31, 2023
87,849,400 shares②Treasury stock at the end of period
As of June 30, 2023
2,697,857 shares
As of March 31, 2023
2,697,857 shares③Average number of stock during period (quarterly cumulative period)
Three months ended June 2023
85,151,543 shares
Three months ended June 2022
87,468,693 shares*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants
or auditing firms.
*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 Company
and certain assumptions that the Company deems to be reasonable at the time this report was prepared. Actual results
may differ significantly from the forecasts due to various factors. For information regarding the business forecasts,
etc., please refer to “1. Qualitative Information on Quarterly Financial Results (3) Consolidated Earnings Forecasts”(Page 4).

―2―

〇 Table of Contents of the Appendix

1. Qualitative Information on Quarterly Financial Results…………………………………………………… 2(1) Results of Operations………………………………………………………………………………..…..2(2) Financial Position……………………………………………………………………….…… 4(3) Consolidated Earnings Forecasts…………………………………………………………………......…4
2. Quarterly Consolidated Financial Statements and Major Notes………………………………………….….5(1) Quarterly Consolidated Balance Sheets……………………………………………………………...… 5(2) Quarterly Consolidated Statements of Income and 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)……………………....…91

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the first quarter under review, the legal status of COVID-19 under the Infectious Diseases Control Law was graded down to class
5, and people in Japan are beginning to return to their normal lives. Meanwhile, the Japanese economy remains uncertain reflecting
the unstable international situation due to the situation in Ukraine and other factors and soaring energy resources and other prices.
These ongoing concerns inevitably affect the prospects of economic recovery.
In the environment that surrounds our childcare support business, in April 2023, the government established the Children andFamilies Agency in response to the accelerating decline in the number of children. This agency, under the government's efforts toaddress the accelerating decline in birthrates, consolidates child-related policies and places emphasis on child-centric initiatives andpolicies, aligning with the concept of a "Society Centered on Children". The aim is to strengthen child policies and enhance support
for children. Additionally, on June 13, 2023, the government finalized the Children's Future Strategic Policy, outlining specificunprecedented measures to address the decline in birth rates. Over the next three years, the government will make concentrated
efforts and allocate a budget of approximately 3 trillion yen annually. The specific measures announced as part of the "Children's
Future Strategy" include improving the placement standards for childcare workers, for the first time in 75 years, to establish asystem where parents can leave their children to facilities with peace of mind. This involves securing childcare personnel throughfurther enhancements in their treatment. Additionally, a "Universal Childcare System (tentative name)" is planned to be established,enabling all families with children to utilize childcare centers regardless of employment requirements. These efforts are part of the"unprecedented measures to address the decline in birth rates”. Moreover, initiatives aimed at creating a more supportive
environment for childcare, such as doubling child-related budgets, are being accelerated. The social role of childcare support
initiatives is believed to be increasingly crucial as they contribute to the establishment of conditions conducive to easy childcare.
As described above, while the improvement of childcare environments by the government is being expanded, in areas where thebirthrate decline is accelerating, competition among childcare facilities is intensifying to acquire the number of children. Structuralreforms for sustained growth and further earnings expansion, and the development and early profitability of new businesses will be
required. In view of changes in the external environment, the medium-term management plan (from March 2024 to March 2026)
will be reviewed in line with the announcement of business forecasts for the fiscal year ending March 2024, with “Achieve growthand establish a competitive advantage,” “Reform our profit structure,” and “Reform our management base” as priority targets. With
this, we will create new services and value, establish a competitive advantage and solve social problems through our business byproactively developing new businesses for growth, developing infrastructure utilizing M&As and systemization, and building solid
business foundations with structural reforms and business reforms. Through these efforts, we will aim for sustainable growth while
realizing the management philosophy of our group: “Through child care support, we will contribute to creating smiles foreveryone.”
To effectively adapt to the changing social environment, we are deploying the following strategies. Firstly, we aim to "achieve
growth and establish a competitive advantage" by developing new businesses with a focus on medium to long-term growth.
Simultaneously, we are proactively considering M&As to not only expand existing operations but also to venture into new businessdomains. Furthermore, in order to enhance our competitive advantage, we plan to develop and expand new learning programs. For
instance, we will offer childcare and after-school programs that incorporate STEAM education, as well as after-school activities
such as English, gymnastics, and music classes. Additionally, the strategy encompasses various initiatives, including the operationof a "bilingual nursery school" with English native teachers as a new facility, establishing a comprehensive childcare support
system for infants, toddlers, and school-age children, and adopting a dominant strategy through collaboration between nurseryschools, after-school clubs, and children’s clubs, aiming to double the current number of after-school clubs and children’s clubs to
200 facilities through proactive expansion efforts. Additionally, we are working on enhancing collaboration with local communities
to establish the "My Nursery School System" to support those who are planning to have and raise children, as part of our efforts toimprove the parenting environment. As such, we are actively implementing a differentiation strategy as part of our commitment tocreate " facilities that would continue to be selected by customers" in various regions.
Furthermore, as part of our new business initiatives, within the support platform "codomel," we are expanding service offerings andproducts. We are strengthening our capabilities for C2C, B2C, and B2B interactions. Additionally, we have established the realestate company "Kosodate Support Realty Co., Ltd." within the group. This entity focuses on real estate intermediary services,
property leasing, property management, and real estate consulting related to childcare support operations. These efforts are aimed
at achieving early revenue generation.
Regarding "reform our profit structure," we are reassessing our business structure. We are addressing redundant tasks, streamlining
operations through ICT integration, optimizing staffing, enhancing financial management, rigorously controlling costs, andachieving operational efficiency through the rectification of inefficient operations and processes using data utilization. We are also
committed to reducing indirect costs and further improving our operations through business process reforms and system
implementations.
As for the “reform our management base,” the key to our business is people. Therefore, we will enhance our personnel educationand training structure. At the same time, we will retain and develop outstanding human resources and improve employee
engagement to lead to a change in awareness. Moreover, we are working to revitalize our organization by enhancing our humanresources strategy (expanding training and renewing our corporate culture), strengthening Group governance, and establishing an
on-site work and management system.

2

As for the new facility openings, the Group has opened a total of 9 facilities during the first quarter of the fiscal year ending March2024 according to the plan, including 1 nursery schools (1 in Tokyo) and 8 school clubs and children's houses (8 in Tokyo).
(Nursery School)
Shinagawa Municipal Yashio Nishi Nursery School(Apr. 1, 2023)(School club/Children's house)
Heisei Elementary School After School Kids’ Club
Ryusen Kids’ Club
Chofu Municipal Chowa Elementary School Club No.2
Minamikko Hiroba
Minato-ku Houka-go→Club Konan
Takaban Elementary School Lan Lan Hiroba
Yonsho Aozora School Club
Asc Asakusabashi Kids’ Club

(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Jun. 1, 2023)(Bilingual Nursery School)
The Company changed licensed nursery schools and Tokyo Licensed Nursery Schools to bilingual nursery school, which isstaffed by native English-speaking teachers.
Asc Bilingual Nursery School Eifuku (formerly Asc Eifuku Nursery School)(Apr. 1, 2023)
Asc Bilingual Nursery School Kameido (formerly Asc Kameido Nursery School)(Apr. 1, 2023)
GENKIDS Bilingual Nursery School Shinkoyasu (formerly GENKIDS Shinkoyasu Nursery School) (Apr. 1, 2023)
Asc Bilingual Nursery School Asakusabashi (formerly Asc Asakusabashi Nursery School)(Jun. 1, 2023)
Ask Bilingual Nursery School Meidai-mae (formerly Asc Meidai-mae Nursery School)(Jun. 1, 2023)*1: As of March 31, 2023, the Company closed Tokyo Licensed Nursery School named Asc Fudo-mae Nursery School. In addition, due to the
expiration of the contract, the Company withdrew from school clubs named 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 Kirigaokasato Hiroba/Kirigaoka-satokko Club No. 1, Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 2, Wakuwaku Kirigaoka-sato
Hiroba/Kirigaoka-satokko Club No. 3, Wakuwaku Fukuro Hiroba/Akakita Hibari Club No.3, Wakuwaku Yoniwa Hiroba/Yoniwa Elementary
School Icho. Club No. 1, Wakuwaku Yoniwa Hiroba/Yoniwa Elementary School Icho. Club No. 2, Mitaka Municipal Minamiura School Club
Annex A, Minato-ku Houka-go→Club Honmura, Bunkyo-ku Meidai Temporary Childcare Room as of March 31, 2023.

As a result, the Group came to have 209 nursery schools, 85 school clubs, 11 children's houses, making a total of 305 facilities forsupporting child-raising at the end of June 2023.
As a result, the Group’s consolidated net sales were 8,956 million yen (up 4.2% year on year), operating income was 868 million
yen (up 19.6% year on year), ordinary income was 877 million yen (up 18.7% year on year), and net income attributable to ownersof parent was 572 million yen (up 18.0% year on year).
The major factors are as follows:
In terms of net sales, at the beginning of the period, the impact of the COVID-19 pandemic persisted, resulting in a temporary
decrease in the number of children. However, initiatives aimed at creating "facilities that would continue to be selected bycustomers", such as the introduction of new early childhood learning programs, led to an increase in the number of children during
the mid-term period, opening of new facilities, and acquisition of new contracts. As a result, net sales increased by 4.2% year on
year.
In terms of operating income, the cost of sales increased due to an increase in electricity prices and a surge in the prices of various
purchased merchandise. However, we worked to control and reduce costs by increasing net sales through the above-mentioned
measures, improving operating efficiency by reallocating personnel at each facility and reviewing the ordering system. As a result,operating income increased by 19.6% year on year.
Ordinary income and net income attributable to owners of parent also increased by 18.7% and 18.0% year on year, respectively, asa result of growth in net sales, improved sales at existing facilities, and efforts to control expenses through efficient operations.

3(2) Financial Position
As for the financial position at the end of the first quarter of the current fiscal year, the total assets amounted to 35,086 million yen(down 608 million yen from the end of the previous fiscal year).
Current assets totaled 23,259 million yen (down 353 million yen), mainly reflecting an increase of 754 million yen in cash anddeposits, an increase of 75 million yen in others, while there was a decrease of 1,189 million yen in accounts receivable.
Fixed assets totaled 11,826 million yen (down 254 million yen). This was mainly due to decreases of 102 million yen in buildings
and structures, 74 million yen in deferred tax assets and 57 million yen in long-term loans receivable.
Total liabilities amounted to 21,444 million yen (down 666 million yen).
Current liabilities totaled 8,528 million yen (up 233 million yen), mainly reflecting increases of 574 million yen in others and 265
million yen in accounts payable, while there were decreases of 394 million yen in provision for bonuses and 196 million yen inincome taxes payable.
Fixed liabilities totaled 12,916 million yen (down 900 million yen). This was mainly due to a decrease of 910 million yen in longterm loans payable.
Total net assets at the end of the first quarter of the current fiscal year totaled 13,642 million yen (up 58 million yen). This was
mainly due to an increase of 61 million yen in retained earnings.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 11, 2023, but actual results
may be different from the forecast according to the changes in business situations, etc.
If there are any changes, the Company will disclose them properly.

42. [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Thousand yen)Previous Fiscal Year
(March 31, 2023)

Current First Quarter(June 30, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade

19,330,865
60,19820,085,379
77,471Inventories
Accounts receivable - other55,476
3,263,596

42,5252,074,491

904,246-1,291

980,146-379

23,613,092

23,259,635

12,024,967

11,991,422

Accumulated depreciation and impairment-7,640,405-7,709,218

Buildings and structures, net

4,384,561

4,282,203

Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

203

203

Accumulated depreciation

-150

-157

Machinery, equipment and vehicles, net

5345

1,340,178

1,379,277

Accumulated depreciation and impairment-869,662-896,656

Tools, furniture and fixtures, net

Tools, furniture and fixtures

470,516

482,621Land
Construction in progress

129,529330

129,529-

Total tangible fixed assets

4,984,990

4,894,400

106,350

98,754

Intangible assets
Goodwill
Other

39,68938,426

Total intangible assets

146,040

137,180

Investment securities
Long-term loans receivable

406,875
2,804,871

412,983
2,747,833

Guarantee deposits
Deferred tax assets

1,819,824
1,458,611

1,816,080
1,383,968

Other
Allowance for doubtful accounts

465,177-4,727441,352-6,896

Total investments and other assets

6,950,632

6,795,322

Investments and other assets

Total fixed assets
Total assets

5

12,081,664

11,826,904

35,694,756

35,086,539

(Thousand yen)Previous Fiscal Year
(March 31, 2023)

Current First Quarter(June 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of long-term loans payable

186,091
3,654,742

171,075
3,642,242

Accounts payable – other
Income taxes payable

1,681,700
433,452

1,946,879
237,268

Accrued consumption taxes
Reserve for bonuses

92,647866,100

107,992
471,720

Asset retirement obligation
Other

3,087
1,376,561

1,950,856

Total current liabilities

8,294,383

8,528,034

Long-term debt
Retirement benefit liability

12,226,111
970,699

11,315,916
979,922

Asset retirement obligation
Other

619,549-

620,246
26

Fixed liabilities

Total fixed liabilities

13,816,359

12,916,111

22,110,742

21,444,145

Shareholders’ equity
Capital1,603,955

1,603,955

Capital surplus
Retained earnings

1,455,989
11,422,289

1,455,989
11,483,694

Total liabilities
Net assets

Treasury stock-784,199-784,199

13,698,034

13,759,439

Accumulated other comprehensive income
Valuation difference on available-for- salesecurities
Deferred gains or losses on ledges-111,798-114,414

1,143

-18

Remeasurements of defined benefit plans-3,365-2,612

Total shareholders’ equity

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6-114,020-117,045

13,584,013

13,642,393

35,694,756

35,086,539

(2) [Quarterly Consolidated Statements of Income and Statements of Comprehensive Income][Quarterly Consolidated Statement of Income] [First Quarter of FY3/20][First Quarter of FY3/24]

Net sales
Cost of sales

Previous First Quarter(Apr. 1, 2022
- June 30, 2022)
8,596,637
7,152,164(Thousand yen)
Current First Quarter(Apr. 1, 2023
- June 30, 2023)
8,956,299
7,412,651

Gross profit

1,444,473

1,543,647

Selling, general and administrative expenses

718,242

675,299

Operating income

726,230

868,347

Non-operating income
Interest income

20,021

18,236

Subsidies for employment adjustment
Other

2,475
9,271

5,933
4,227

Total non-operating income

31,76828,39718,092

18,208Non-operating expenses
Interest expenses
Other

499

540

18,592

18,748739,406

877,996

100

0

100

0

Income before income taxes and others739,306

877,996

Corporate, inhabitant and enterprise taxes

221,481229,769

Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of fixed assets
Total extraordinary loss

Income taxes-deferred

32,71275,913

Total income tax

254,194

305,682

Net income

485,112572,314

Net income attributable to owners of parent

485,112572,314

7

[Quarterly Consolidated Statement of Comprehensive Income][First Quarter of FY3/24]

Net income
Total accumulated other comprehensive income

Previous First Quarter(Apr. 1, 2022
- June 30, 2022)
485,112(Thousand yen)
Current First Quarter(Apr. 1, 2023
- June 30, 2023)
572,314-23,101
2,357-2,615-1,161

4,283

752

Valuation difference on available-for- sale securities
Deferred gains or losses on ledges
Remeasurements of defined benefit plans-16,460-3,024Comprehensive income

Total other comprehensive income

468,652

569,289

BreakdownComprehensive income attributable to owners of parent

468,652

569,2898

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)First quarter of FY3/24 (April 1, 2023 – June 30, 2023)
None applicable.
(Notes if there is a significant change in the amount of shareholders' equity)
First quarter of FY3/24 (April 1, 2023 – June 30, 2023)
None applicable.

9