The No.1 operator of children’s daycare services in Japan

JP-HOLDINGS, INC.
2nd Quarter Financial Results for the Fiscal Year ending March 2018

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

Company 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

Kazuhiro Ogita, President and Representative Director

No. of Employees

Employees:/ Part-time workers:*As of September-end 2017
Japan Nursery Service Inc. (Capital stock: 99 million yen / Wholly owned subsidiary)
Shikoku Nursery Service Inc. (Capital stock: 10 million yen / 51% 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 (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）
Equity-method Affiliate

KODOMOLOGY Co.,Ltd. (Capital stock: 100 million yen / 49% owned affiliate)
Nursery Service (Japan Nursery Service, Shikoku Nursery Service, Amenity Life, KODOMOLOGY 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.

2

Company Overview

Copyright©JP-HOLDINGS,INC All Rights Reserved.

3

Business Summary Operation of Child Rearing Facilities (Public and Private)
Public Facilities = Subsidy from Gov’t and Municipalities
Licensed 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

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4

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

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5

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
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6

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 Conpanies in the Childcare Industry(Unit: million yen)
25000
JP Holdings

Rival A

Rival B

Rival C

Rival D

Rival E

20000

15000

10000

5000

*Rival C’s sales is estimated number by JPHD
0
2011

2012

2013

2014

2015

2016

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

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7

No. of Facilities Operated
FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

As at
Sep.2017

Licensed schools(Public-private management)

3

5

8

10

11

14

16

14

10

10

11

Licensed schools(Private
management)

9

20

28

43

61

71

85

102

118

136

148

21

22

24

26

26

26

26

26

26

23

21

Non-licensed Municipallty Authorised

4

7

5

4

4

4

4

4

1

0

0

Non-licensed Othernon-licensed

0

0

0

0

0

0

0

0

4

3

3

Joint establishment withamusementfacilities

2

2

1

0

0

0

0

0

0

0

0

18

22

26

37

39

40

43

46

55

63

71

Children's houses

6

8

6

9

7

8

8

8

10

12

12

Private school clubs

0

0

0

0

0

0

0

0

0

4

5

Overseas Facility

0

0

0

0

0

0

0

0

0

0

1

63

86

98

129

148

163

182

200

224

251

272

Tokyo Licensed Nursery School

School clubs

Total*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*Other than the above, opened one overseas facility(kindergarten) on a franchise basis on Sep. 5 th 2017.
Number of facilities

Number of Children

TREND OF NURSERIES AND CHILDREN

200
Licensed schools
認可保育園（公設民営）(Public-private management) 180
Licensed schools(Private management)

160

Tokyo Licensed
Nursery School

120

認可保育園（民設民営）
東京都認証保育所

14000
12000
10000

140

8000

100
Non-licensed

自治体認定保育園
Municipallty Authorised
Non-licensed
その他認可外保育園

6000

80
60

Other non-licensed

40

預かり児童数（保育園）Children in Nurseries

20

4000
2000

0

0

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

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FY3/15

FY3/16

FY3/17

Sep.2017

8

No. of Facilities Operated by Region
No. of Facilities Operated(FY3/17)：183
Nursery schools
School clubs：71Children’s houses ：12
Private school clubs ：5
Overseas Facility：1
Total ：272
*Other than the above, opened one overseas facility(kindergarten) on a franchise basis on Sep. 5th 2017.

Kyushu・Okinawa
Licensed nurseryschools: 5

Hokkaido
Licensed nurseryschools: 3

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

Kinki
Licensed nurseryschools: 6

TohokuLicensed nurseryschools: 11

Kanto
Lic. nursery schools: 125
Non-lic. nursery schools: 24
School clubs: 68Children’s houses: 6
Private school clubs: 5

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Vietnam
Kindergarten:1

Kindergarten：1（on franchise basis）

9

Business Environment
and Our Maneuvers

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10Current Waiting List Situation


The child day care waiting list problem
remains serious. This is especially so in theTokyo metropolitan area and prefectures where
major cities (e.g. designated cities) are located.
(Refer to the map on the right.)

The number of children on waiting lists as ofApr. 2017 is 26,081 (2,528 increase YoY),
which means 3 consecutive years of increase.

※On March 2017, a “new definition” ofchildren on waiting lists was decided
and was applied from April 2017.
Children whose parents are on child careleave shall be included if parents would
wish to work after leave.
There is a possibility of further increasesof children on waiting lists.

Prefecture

National Waiting List Map(April 1, 2017)

Current as of April 1 ,2017

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

(19)
(15)
(15)
(17)
( 0)
( 1)

Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2017)

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
Okinawa

Total

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No. of Children
on the waiting
List
65
0
178
790
41
67
616
516
131
2
1,258
1,787
8,586
756
2
0
0
0
0
0
2
456
185
100
356
227
1,190
1,572
287
29
0
119
1,048
186
100
94
227
97
73
1,297
34
190
275
505
36
354
2,247

26,08111

Gov’t Efforts to Eliminate Waiting Lists
Day Care Waiting List Elimination(accelerated plan)（Enacted April 2013）

Create 400,000 new day care spots between 2013 and 2017-end

Secure Extra Day Carers Plan
（Enacted Jan 2015）

Secure 70,000 new qualified day carers by the 2017-end

Urgent Measures to achieve
100mn Total Active Society（Compiled in Nov 2015）

Expand the 2017-end target of 400,000 day care places to 500,000 including 90,000 day
carers to accommodate thisUrgent Acceleration to Eliminate
Day Care Waiting Lists Plan
（Announced Mar 2016）

Dynamic Engagement of All
Citizens Plan
all industries（June 2016 Cabinet decision）

Action Plan for
Seamless Nursery Service(Announced Sep 2016)

Coordinating cities/pref. to actively drive plans to eliminate child day care waiting lists by:①Speed up understanding of current situation ④Strengthen/expand current business further②More workplace flexibility to secure staff⑤Aggressive deployment of workplace childcare③Ensure the promotion of facility expansion
Improve salaries of day carers by 2%
Eliminate gap between child care providers with skills and experiences and female workers
across all industries
Supporting municipals engage in seamlessly eliminating child day care waiting lists with thefollowing measures:①Further promotion of facilities construction and securing nursery staff②Introduce a nursery reservation system for infants after mothers’ childcare leave③Deploy nursery concierges who can satisfy parents’ needs④Clarify the exemption of property tax on lenders to nurseries

Source：Prime Minister’s Office home page- ”Preventing Child day care waiting lists – working to create an environment of raising children in peace*Translated by JPHD

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12

New Plan to Eliminate Waiting Lists
 Relief Plan for Child Rearing （Announced on Jun 2nd, 2017）
FY2019～FY2020FY2017FY2013
Increase of 530
thousand

Increase of c.320
thousandc. 220 thousand increase

Urgent Acceleration to Eliminate Day
Care Waiting Lists Plan（5 years）
Number of children on
waiting lists

c.100 thousand increase

New Plan（2～3 years + additional 2 years）
zero

c. 24 thousand (2016.4)

Employment rate of women(age 25-44)

FY2022(maintain zero)80％

72.7% (2016)•

Postponed target of eliminating day care waiting lists from the end of FY2017•

Secured budget for c.220 thousand children in 2 years and aim to eliminate day
care waiting lists by the end of FY2020 at the latest•

In addition, prepare capacity of c.320 thousand children to cope with an 80%
employment rate of women by the end of FY2022
Source: Ministry of Health, Labour and Welfare’s Relief plan for child rearing*Translated by JPHD

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13

Gov’t Measures to Eliminate Waiting Lists
 Main contents of 6 assistant packages①Expand capacity of child rearing③Promote close assistance to parents

・Assistance to offset soaring rent expenses ofnurseries located in urban areas
・Promote the reduction of property tax
・Expand area for enterprise-driven nurseries
・Utilize state-owned lands, city parks, post offices andvacant rooms of schools etc.
etc.

・Expand consulting service assistance to parents by“Nursery Concierge”
etc.

②Secure child rearing personnel
・Construct career-up structure based on improving
conditions
・Expand assistance to hire nursery school teachers fromchildrearing support staff.
・Promote assistance to look after the children of nurseryschool teachers
・Mitigate the burden of nursery school teachers throughICT etc.
・Help secure childrearing personnel in municipalities
・Encourage recruitment of nursery school teachers
・Exempt exam subjects and training courses to become
nursery school teachers partially for national-qualified
personnel regarding welfare
・Evaluate to continue mutual aid system of retirement
allowance
etc.

④Assure quality of child rearing
・Promote the switch of non-licensed nurseries tolicensed ones・Maintain and improve educator-to-child ratios
・Enforce new nursery guidelines
・Enhance prevention of accidents at nurseriesetc.

⑤Secure sustainable child rearing system
・Secure stable budget resources for child rearing⑥Work style reform related to child rearing
・Extend childcare leave for parents whose children
could not be accepted by nurseriesetc.

Source: Ministry of Health, Labour and Welfare’s Relief Plan for Child Rearing *Translated by JPHD

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14

Action plan of Tokyo Metropolitan Gov’t for eliminating child day care waiting lists


Additional plan for eliminating child day care waiting lists
Announced by Bureau of Social Welfare and Public Health and Bureau of Industrial and Labor Affairs on Sept. 15th 2017

First Pillar: Promote setting up of nurseries etc.
1. Expand subsidy on rent：Extend the support period of rent subsidy beyond 6 years after opening
2. Support companies which tackle enterprise driven nurseries：Assist on expenses for fixtures necessary for
opening nurseries and those out of scope for national subsidy【Max. amount：3 million yen 】
3. Support to secure and expand regional frame of enterprise driven nurseries： Add regional frame of enterprisedriven nurseries for career-up subsidy on nurseries, school teachers etc. and assist salary increase of workers ofenterprise driven nurseries.

4. Fulfill subsidy on demand of municipalities：In case of setting up nurseries by utilizing rental facilities, assist
expense to equip soundproof walls etc. (Unique initiative of Tokyo Metropolitan Gov’t)【Max. amount : 6.444 million yen Subsidiary rate:1/2】

Second Pillar: Secure Personnel
5. Promote ICT in nurseries etc. to reduce burden of workers in child rearing：Initiate assistance on introducing
nursery operation support system taking into account termination of national subsidy(Unique initiative of Tokyo Metropolitan Gov’t) 【Max. amount：2 million yen】
6. Expand enterprises to lend to students to be nursery school teachers etc. to secure nursery school teachers：
Expand reserve fund for re-employment, expand loan amount to hire more than 2 assistant workers in nursery, and assist
on usage fee of enterprise to look after children of nursery school teachers

Third Pillar: Fulfill assistance on users
7. Further enhance countermeasures for safety of children in nurseries etc.：Assist introducing equipment such as
remote monitoring and baby sensor. 【Max. amount：1 million yen】
Resource：Press Release dated September 15, 2017 by Bureau of Social Welfare and Public Health and Bureau of Industrial
and Labor Affairs, Tokyo Metropolitan Government *Translated by JPHD
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15

Current Nursery School Teacher Shortage Situation(1)Need to secure additional c. 90,000 child care staff to care 500,000 children by the end of 2017

“Latent nursery school teachers”, who have qualified but do not currently engage in child care areapprox. 840,000（2015）

Of 42,000 graduates from nursery school teacher training facilities only 22,000 (approx. half of all
graduates) actually joined nurseries （graduate numbers are as of 2014-end）
Trend of latent nursery school teachers number（Thousand）
1,400

1,312
Registered

Engaging

1,246

Latent

1,186

1,200
1,000

1,069

1,013

954

1,126

894

800
600
400

516
378

627

673

385

396

705

759

802

840

444

472

572
382

421

427

200
0
2008

2009

2010

2011

2012

2013

2014

2015

Source：Registered：Investigation of Equal Employment, Child and Family Policy Bureau, MHLW
(Number at April 1 in each year）
Engaging：Investigation of Director-General for Statistics and Information Policy, MHLW
（Number at October 1 in each year）*Translated by JPHD
(N.B.)Engaging number for 2015 includes qualified nursery school teachers, child care staff and family caregivers

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16

Current Nursery School Teacher Shortage Situation(2)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.

7

6.24

6

Nationwide

Tokyo

5
4

2.76

3
2
1
0

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

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17

Trend of improvement for nursery school teachers treatment by Gov’t


On Dec 22 2016, Cabinet decided Gov’t budget plan for FY2017



Besides a 2% (c. 6,000 yen/month) increase in salary for all personnel , the plan adds 5,000 yen
for leaders with expertise and 40,000 yen/month for senior personnel＋c.10％＋max40,000yen

Trend of Improvement (VS FY2012)

c.32,000yen/m＋max40,000yen/m

16%※amount of monthly salary improvement in each year is planned improvement in budget
14%

Further improvement focusing
on skill and experience

12%

＋c.8％
＋約8％

10%

・leaders with expertise

2.0%+5,000yen/m

3.0%

・Vice-chiefs
・Professional leadersc.26,000yen/m
月額約26,000円

＋約7％
＋c.7％
月額約21,000円
c.21,000yen/m

8%

＋c.5％
＋約5％

3.0%

c.15,000yen/m
月額約15,000円

6%c.9,000yen/m
月額約9,000円（approx. 3 years over）（approx. 7years over）

3.0%

＋c.3％
＋約3％
4%

+

+40,000yen/m
2.0%

2.0%

1.9%

1.9%

1.3%

1.3%

2.85%
2.0%
2%
2.85%

2.0%

1.9%

0%

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Source：Ministry of Health, Labour and Welfare‘s“Countermeasures on improvement for
nursery school teachers treatment”*Translated by JPHD

18

Treatment Improvement by MunicipalitiesTokyo Metropolitan Government
Improve wages by an average 21,000 yen or equivalent monthly
for nursery school teachers from FY2017【Career-up assistance for nursery school teachers etc. ¥24.4bn 】 （Budget plan FY2017）



Chiba Prefecture
Add 20,000 yen monthly for nursery school teachers as wage assistance from FY2017（1/2 of improvement assisted by municipalities (In case of designated cities: 1/4))【Treatment improvement for nursery school teachers ¥550mn 】（Supplementary budget plan FY2017）

Source：Bureau of Finance, Tokyo Metropolitan Government “Summary of FY2017 Budget Plan of Tokyo”
Chiba Prefectural Government “FY2017 Supplementary Budget Plan as of June 2017 Documents on Main Policies”*Summarized and translated by JPHD

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19

Our Plan to Secure Nursery School Teachers
Enhancerecruitment

Acquirequalificationof childcare

•
•
•
•

Continue salary increase
Hold seminars and bus tours to visit nurseries according to career level around Japan
Provide employment support money
Arouse interest for potential nursery school teachers by recruiting short time or latetime workers who have segmented needs•

Started a benefit scholarship system from FY3/16. This supports those aspiring to benursery school teachers from their student days and leads to their desire to join ourcompany.
Started training course recruitment for those who are unqualified but who are looking
to pass the national test at our company from FY3/16.
Expanded recruitment of kindergarten teachers who are willing to become qualified
nursery staffs with sponsored support.

••

Mitigateburden•••Reduce the daily burdens on day carers by employing administration staff and janitors
Reduce burden of office works through ICT
Allocate part time workers specifying to late time of a day and reduce burden of
regular employees

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20

Recruitment of Nursery School Teachers
FY2015

Nursery School
Teacher
Non qualified*

FY2016

New Graduates

178

197

Mid career
employment

219

241

－

23

New Graduates

FY2017FY2018
Forecast

247

300

253

－

*as of Sep.201732

50* After joining JPHD non qualified graduates
are expected and assisted to acquirenursery school teacher qualification.
Started this recruitment style from FY2016

Trend of Employee Numbers in Child Rearing Business
5000(*Include employees of school clubs stuffs, nutritionists, etc. other than nursery school teachers)
社員
Employees

4500
4000

アルバイト
Part-time workers

3500
3000
2500
2000
1500
1000
500
0

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21

2Q FY3/18 Results

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22

2Q FY3/18 Financial Highlights
2Q FY3/17
Net sales (million yen)

2Q FY3/18

Year on Year
Comparison(%)

Change10,973

12,748

1,775

16.2

Operating income (million yen)

299

449

150

50.3

Ordinary income (million yen)

384

593

208

54.1

Net income attributable to owners of parent(million yen)

245

347

101

41.5

Net income per share (yen)

2.93

4.09

1.16

―

Net assets per share (yen)

74.41

83.08

8.67

―

Shareholders’ equity ratio (%)

28.5

30.0

1.5

―

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23

FY3/18 New Openings
FY3/18 New Openings: 11
Nursery School:8
School Club
Private School Club : 1:1
Overseas Facility
Total : 21
*In addition to the above, our existing Asc Kagurazaka Nursery School and
Asc Hibarigaoka Nursery School became licensed on April 1, 2017.

Miyagi:1 licensed nursery school*Other than the above, opened one overseas facility(kindergarten) on afranchise basis on Sep. 5th 2017.

Asc Rifu Nursery Scohol

Kanagawa:

Okinawa:
2 licensed nursery schools•••

Asc Chatan Nursery School
Asc Maezato Nursery School

2 licensed nursery schools••

Asc Chogo Nursery School
Asc Imaiminami Nursery School

1 private school club•

AEL Yokohama Business ParkTokyo:
5 licensed nursery schools•••

Tokyo:
8 school clubs

Fukuoka:
1 licensed nursery school•

Asc Takeshita Nursery School

•
•
•
•
•

•
•

Gotanno Nursery School
Asc Tokiwadai Nursery School
Asc Nagasaki 1-chome
Nursery School
Asc Iwadokita Nursery School
Asc Kamimeguro Nursery
SchoolActy YanagichoSibasakikoen-kita No.1 School Club,
No.2 School Club
Shitaya Kids’ Club A,B
Matsuba Kids’ Club A,B
Hanabatake No.2 School Club

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Vietnam:
1 Kindergarten
・COHAS DA NANG
（Da Nang）

1 Kindergarten* on franchise basis
・Cohas Kids
（Ho Chi Minh）

24

2Q FY3/18 Profit and Loss Statement
2Q FY3/17
Amount(Million Yen)

Year on Year
Comparison

2Q FY3/18

Component
Component
AmountAmountRatio
Ratio(Million Yen)
(Million Yen)(%)(%)

Rate of
Change(%)

Net sales

10,973100.0

12,748

100.0

1,775

16.2

Cost of sales

9,445

86.1

10,979

86.1

1,533

16.2

Gross profit

1,527

13.9

1,769

13.9

242

15.9

SG & A expenses

1,228

11.2

1,320

10.4

91

7.5

Operating income

299

2.7

449

3.5

150

50.3

Non-operating income

114

1.0

181

1.4

66

58.2

Non-operating expenses

28

0.3

38

0.3

9

31.8

Ordinary income

384

3.5

593

4.7

208

54.1

Net income attributable to owners of parent

245

2.2

347

2.7

101

41.5

Copyright©JP-HOLDINGS,INC All Rights Reserved.

25

2Q FY3/18 Balance Sheet
FY3/17(Million Yen)
Current assets

2Q FY3/18(Million Yen)

Amount of Change(Million Yen)

7,060

7,624

563

Cash and cash deposits

4,017

4,513

495

Accounts receivable

1,698

1,726

27

16,941

15,945

- 995

9,775

8,902

- 872

523

493

- 30

6,642

6,549

- 92

Total assets

24,002

23,569- 432

Current liabilities

6,538

7,299

761

3,250

3,024

- 226

841

1,231

389

10,608

9,194- 1,414

9,855

8,405

- 1,449

Total liabilities

17,147

16,494- 653

Net assets

6,854

7,075

221

Total liabilities and net assets

24,002

23,569- 432

Non-current assets
Property and equipment, net
Intangible fixed assets
Investment and other assets

Long-term debt within one year maturity
Note and accounts payableNon-current liabilities
Long-term debt

Copyright©JP-HOLDINGS,INC All Rights Reserved.

26

JP Holdings’ Strengths

Copyright©JP-HOLDINGS,INC All Rights Reserved.

27

JP Holdings’ Strengths (1)SafetyManagement

•
•
•
•
•
•
•

Creation of a specialized department focused on safety management.
Structure to share accident cases
Security control by auto-lock and emergency call equipment
Safe facilities protected by cushioned floor, doors with finger jam
prevention
AED deployment in all facilities
Emergency lifesaving training for all staff members
Development of various manuals(e.g. how to deal with disasters and abuse)

Nutrition • Hand made lunch with event and local foods• Cooking in nursery
Education • Dietary education activity support by food and agriculture
guidance teams

UniqueProgram•Gymnastics, English and eurhythmics courses

Development
Support••Facility patrol support by development support teams
Suku-Suku Plus child support advisory center(Rehabilitation support project)

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28

JP Holdings’ Strengths (2)
Human
Resources
Development•••

Training courses over 100 annually
Oversea training in advanced countries in nursery education such as Germany and
New ZealandIntroduce E-learning to unify and improve quality of child rearing

Working
Environment

Cost
Management•••

Reduce burden of office works through ICTMulti-layered follow system by tutor, manager and supervisor

Central purchasing of nursery related goods by utilizing
our scale merit

Copyright©JP-HOLDINGS,INC All Rights Reserved.

29

Mid-term Management Plan&
Growth Strategy

Copyright©JP-HOLDINGS,INC All Rights Reserved.

30

For Plan Implementation
Key Objectives in the Period of the Plan
(1) Enhance security measures and further improve the quality of childcare(2) Increase the number of children accepted by opening new facilities and increasing the number of nurseryschool teachers in existing facilities(3) Increase investment in human resources (strengthen recruitment activities, enhance human resource
development and review the personnel assessment system)(4) Re-develop our business management structure (enhance our business risk management structure andstrengthen group company cooperation)(5) Start work on new business aimed at expanding our revenue baseMeasures to Achieve the Key Objectives(1)Further strengthen our safety management structure (promote cross-organizational structure enhancement)(2)Successive employee salary rises(3)Introduce systems in each field (reduce workload and optimize business management )(4)Further enhance policies aimed at securing nursery school teachers (increase recruitment budget )(5) Expanding our revenue base with new business (private school clubs, consulting service, overseas child rearbusiness, in-house nurseries operation).

Copyright©JP-HOLDINGS,INC All Rights Reserved.

31

Concrete Measures(1) Overseas Child Rearing Business : Opened 2 kindergartens on Sep. 2017 in Vietnam•

COHAS DA NANG

Opened on Sep. 12, 2017

Operated by 100％ wholly owned subsidiary ”COHAS VIETNAM CO., LTD”
Outline of the Operator

Outline of the Facility
Name

COHAS DA NANG

Name

COHAS VIETNAM CO., LTD

Location

Da Nang City, Vietnam

Location

Da Nang City, Vietnam

Enrollment Limit

200 children

Naoto Nishii, Representative Director

Entrance fee 2,000,000 VND

Representative/at the time of entry

Fee
Operating Hours

JP-HOLDINGS, INC.)

Nursery fee 5,700,000 VND /month
6:45-18:00 (Mon.- Sat.)

Business

CapitalEstablished•

Cohas Kids

(Served concurrently as director of
Early childhood education business
6,834,000,000 VND(100% investment by JP-HOLDINGS, INC.)
April 14, 2017

Opened on Sep. 5, 2017

Based on franchise contract with Viet Nhat Education Corporation, JPHD loan fundand provide know-how as franchisor
Outline of the Facility

Outline of the Operator

Name

Cohas Kids

Name

Viet Nhat Education Corporation

Location

Ho Chi Minh City, Vietnam

Location

Ho Chi Minh City, Vietnam

Enrollment Limit
Fee
Operating Hours

130 children
Entrance fee 3,000,000VND/at the time of entry
Nursery fee 8,500,000 VND /month
7:00-19:00 (Mon.- Fri.),
7:00-16:00 (Sat.)

Representative

Nguyen Minh Thuan,
Representative Director and President

Business

Operation of kindergartens

Capital5,000,000,000 VND

Established

November 23, 2015

*Do not count as our operating facilities because of Franchisee’s one
Copyright©JP-HOLDINGS,INC All Rights Reserved.

32

Concrete Measures(2) In-house Nurseries Operation•

Established “KODOMOLOGY Co., Ltd.” a joint-venture company with Shiseido Co., Ltd.
On February 20, 2017.Capital:100million yen （Shiseido 51%, JPHD 49%）•

“Kangaroom Kakegawa”, in-house nursery which KODOMOLOGY is assigned operation,
opened on site of Shiseido Kakegawa Factory(Kakegawa City, Shizuoka) on Nov.1, 2017
Shiseido

・Accumulated Knowledge
・Expertise on child rearingon-Support system for・Operational experience
woman empowerment KODOMOLOGY
of many nurseries-Supporting work life
・Voice ofbalance for working
nursery school teachers
mothers
・Research on sensibility
and sensory•••

Outline of Kangaroom Kakegawa

JP-HOLDINGS

Location

762-1, Shimomata, Kakegawa City, Shizuoka

Target57 days old to preschool children（enrollment capacity by age）

Enrollment Limit

50 children

Days

Monday to Saturday（excl. national holidays）

Hours

7:30 AM to 18:30 PM（ with extension ）OperatingServiceIncl. temporary, extended and convalescencechildcare

Propose new style for in-house nurseries
Provide support service from maternity period
Make new contribution to Child rearing
with a scientific stand point.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

33

Concrete Measures(3) Private School Club (AEL)
Opened AEL Yushima on Sep. 2016 and AEL Yokohama Business Park on Apr. 2017
Provide unique program without subsidy from municipalities『School Club』
Proper field forplay and study
after school
and weekend＋

Original Program
to enhance
power to live＋

Measures topass juniorhigh school・
entrance
exam・・English, arithmetic,etc.

 Consulting Service
Consulting for newly opening and operation of child rearing facilities••

Contracted（Incl. consecutive contracts from previous year）：10
Prospective new contracts：2

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34

Appendix

Copyright©JP-HOLDINGS,INC All Rights Reserved.

35

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.

36

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.

37

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)

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

6,062

7,272

8,194

9,166

11,867

13,78915,747

17,86820,552

22,799

392

521

738

839

1,114

1,285

1,234

1,345

1,732

1,168

500

707

800

866

1,150

1,325

1,460

1,550

1,781

1,350

266

440

444

500

653

717

837

904

1,071

661

3.60

5.98

6.06

6.67

7.83

8.60

10.03

10.84

12.84

7.87

* Net income per share is the amount that reflects the stock split.
(million yen)
25,000(million yen)
2000

Net sales

売上高(left axis)

Ordinary income

営業利益(right axis)

Operating income

経常利益(right axis)

1800

20,0001600
1400

15,000

1200
1000

10,000

800
600

5,000

400
200

0

0
2008年…
FY3/08

2009年…
FY3/092010年…
FY3/102011年…
FY3/11

2012年…
FY3/12

2013年…
FY3/132014年…
FY3/14

Copyright©JP-HOLDINGS,INC All Rights Reserved.

2015年…
FY3/152016年…
FY3/162017年…
FY3/1738

Consolidated Results (Balance Sheet / Statement of Cash Flows)
FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

Total assets(million yen)

3,823

4,275

5,763

9,432

9,808

10,876

13,521

18,882

21,12624,002

Net assets(million yen)

1,242

1,546

1,903

3,559

3,977

4,452

5,034

5,606

6,279

6,854

Shareholders’ equity
ratio
(%)

32.4

36.1

32.9

37.7

40.5

40.9

37.2

29.7

29.7

28.5

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

Cash flows fromoperating activities(million yen)

439

672

378

915

1,205

1,173

1,038

1,294

1,804

1,878

Cash flows frominvesting activities(million yen)

- 587

- 363

- 906

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

Cash flows fromfinancing activities(million yen)

33

- 157

412

2,473

- 219

514

1,220

3,748

1,553

1,646

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

972

1,137

1,022

2,602

2,768

3,188

1,808

2,891

3,798

4,017

Copyright©JP-HOLDINGS,INC All Rights Reserved.

39

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.

Amount ofdividend per
share
(yen)
Payout ratio(%)

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

1.12

1.90

2.00

2.90

3.00

3.20

3.60

4.00

5.00

2.50

37.2

35.9

36.9

38.9

31.8

Commemorati Commemorati
ve dividend:ve dividend:
0.50 yen
0.50 yen

31.0

31.7

33.0

43.4

38.3

The amount of dividend per share reflects the stock split.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

40

NADESHIKO Brand
We have been selected as a NADESHIKO Brand since 2015. We willcontinue to promote women’s participation and advancement in theworkplace proactively and aim to enhance corporate value.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

41

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:
Mika Matsumiya
General Manager of Administration Div.
JP-HOLDINGS, INC.

17F Chikusa New Tower Bldg., 3-15-31
Aoi,Higashi-ku, Nagoya-shi Aichi
TEL: 052-933-5419
FAX: 052-933-5163
E-mail: mika_matsumiya@jp-holdings.co.jp