Summary of Business Results for the First Quarter Ended June 30, 2018
[Japan GAAP] (Consolidated)
August 8, 2018
Company
Listed on the TSE 1
JP-HOLDINGS, INC.
Stock Code2749
URL: http://www.jp-holdings. co.jp
Representative
Koichiro Furukawa, President and Representative Director
C o n t a c t
Akihiko Fukuoka, Director
T E L: +81-52-933-5419
Expected date of filing of annual securities report: August 13, 2018
Expected starting date of dividend payment: ―Preparation of supplementary financial document: YesResults briefing: Yes (for media members, institutional investors and analysts)（Rounded down to million yen）

１. Consolidated business results for the three months ended June 2018
(April 1, 2018 through June 30, 2018)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales
Three months ended Jun. 2018
Three months ended Jun. 2017
(Note) Comprehensive income

Million yen
7,099
6,398

Operating income
%
11.0
17.9

Million yen
-138
236%
235.8

Ordinary income
Million yen-8311%
183.8

Net income attributable toowners of parent

Million yen-16183%
196.4

Three months ended June 2018: -90 million yen (-%)
Three months ended June 2017: 188 million yen (250.9%)
Net income
Diluted net income perper shareshareYenYen
Three months ended Jun. 2018
-0.19
Three months ended Jun. 2017
2.17-(2) Consolidated financial position
Total assets
Million yen
24,75625,758

As of Jun. 30, 2018
As of Mar. 31, 2018

Shareholders’ equity
ratio%
29.9
30.1

Net assets
Million yen
7,407
7,756

(Reference) Shareholders’ equity
As of June 30, 2018: 7,403 million yen
As of March 31, 2018: 7,752 million yen

2. Dividends
End of 1Q

0.00

Annual dividend
End of 3Q
Yen-0.00-

End of 2Q
Yen

Year ended Mar. 2018Year ending Mar. 2019Year ending Mar. 2019 (forecast)

Yen-Year-end

Total
Yen

Yen

3.50

3.50

3.50

3.50

(Note) Revisions to dividend forecast for the current quarter: Yes
For more details, please refer to “1. Qualitative Information on Quarterly Financial Results (3) Consolidated Earnings Forecasts” (Page 3).

3．Forecast of consolidated business results for the fiscal year ending March 2019
(April 1, 2018 through March 31, 2019)
Net sales
Million yen

Year ending Mar. 201930,001(% change from the previous corresponding period)
Net income
Net income attributable toOrdinary income
owners of parentper share

Operating income%

12.0

Million yen

1,847%

41.8

Million yen

2,196%

38.8

Million yen

980%

7.7

Yen

11.52(Note) Revisions to business forecast for the current quarter: Yes
For more details, please refer to “1. Qualitative Information on Quarterly Financial Results (3) Consolidated Earnings Forecasts” (Page 3).

*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: None
: None: None: None(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of June 30, 201887,849,400 shares
As of March 31, 201887,849,400 shares②Treasury stock at the end of period
As of June 30, 2018
2,139,806 shares
As of March 31, 2018
2,315,806 shares③Average number of stock during period (quarterly cumulative period)
Three months ended June 201885,625,969 shares
Three months ended June 201784,794,994 shares(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and the average
number of stock during period include the company's shares held by Trust & Custody Services Bank, Ltd. as trust property of"Stock Benefit Trust (Employee Stock Ownership Plan)"*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 assumptions thatform the basis for the business results forecasts and notes about using business forecasts, please refer to “1.
Qualitative Information on Quarterly Financial Results (3) Consolidated Earnings Forecasts” (Page 3).
∙ The company plans to hold results briefing for media members, institutional investors and analysts on August 10,
2018 (Friday). After the results breifing, the Company will promptly post presentation materials distributed at theresults briefing on the Company website. Please confirm the results briefing schedule and other information on theCompany website.

○Table of Contents of the Appendix
1. Qualitative Information on Quarterly Financial Results ................................................................................................... 2(1) Results of Operations .................................................................................................................................................... 2(2) Financial Position ......................................................................................................................................................... 3(3) Consolidated Earnings Forecasts .................................................................................................................................. 3
2. Quarterly Consolidated Financial Statements ................................................................................................................... 5(1) Quarterly Consolidated Balance Sheets ........................................................................................................................ 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income .... 7(3) Notes on Quarterly Consolidated Financial Statements ................................................................................................ 8(Notes on going concern assumption)........................................................................................................................... 8(Notes if there is a significant change in the amount of shareholders' equity) .............................................................. 8(Additional information) ............................................................................................................................................... 8－ 1 －1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the first quarter of the current fiscal year, the Japanese economy continued to mark out a moderate recovery trend,as the environment for both employment and personal income is improving thanks to the effects of the economic andfinancial policies by the government. On the other hand, the global economy continued to remain unclear as the resultof political risks in Europe, and geopolitical risks such as the instability of the situation in the Middle East among
other issues.
As for the environment surrounding the child-raising service, demand for childcare is increasing in response to
women's advancement and active participation in society, and as the issue of the number of children waiting foradmission continues to become more and more serious. The government has promoted a policy to provide daycare for
320,000 children by the end of March 2021 and to further improve the levels of compensation of nursery school
teachers. Based on the "Basic Policy on Economic and Fiscal Management and Reform 2018" adopted by the Cabinet
on June 15, 2018, the government also aims to fully implement the program of providing free early childhood
education from October 2019. It is expected that the size of the market will continue to expand in response to thesegovernment policies, and social role of our child-raising service is expected to become more important.
Against this backdrop, our Group worked to enhance the recruitment of childcare workers and raise the retention rateby promoting the use of ICT to reduce work and by responding to the specific, detailed needs of part-time workers
including short-time working needs, etc. to discover potential nursery school teachers. In order to respond to the risinglevels of demand for nursery services, the Group is also actively opening licensed nursery schools, etc.
In the first quarter of the current fiscal year, the Group has opened the following new facilities, including 15 nurseryschools and 4 school clubs, totaling 19 facilities.
(Nursery school)
Koto-ku Minamisuna No. 4 Nursery School(Apr. 1, 2018)

Asc Toneri Nursery School(Apr. 1, 2018)

Asc Higashi Kasai Nursery School(Apr. 1, 2018)

Asc Minami Kugahara Nursery School(Apr. 1, 2018)

Asc Yakuoji Nursery School(Apr. 1, 2018)

Asc Kaname-cho Nursery School(Apr. 1, 2018)

Asc Fuchu Honmachi Nursery School(Apr. 1, 2018)

Asc Minowa Nursery School(Apr. 1, 2018)

Asc Kugenuma Kita Nursery School(Apr. 1, 2018)

Asc Ohtaka-no-mori Nursery School(Apr. 1, 2018)

Asc Wani Nursery School(Apr. 1, 2018)

Asc Sone Minami Nursery School(Apr. 1, 2018)

Asc Toyotama 1-chome Nursery School A(Apr. 1, 2018)

Asc Toyotama 1-chome Nursery School B(Apr. 1, 2018)

GENKIDS Shinkoyasu Nursery School(Apr. 1, 2018)(School club)
Kojimachi Kids’ Club(Apr. 1, 2018)

Taisho Elementary School After School Kids’ Club (Apr. 1, 2018)
Chofu City Chowa Elementary School Club

(Apr. 1, 2018)

Wakuwaku Takinogawa Momiji Hiroba(Apr. 1, 2018)

As a result, the Group came to have 198 nursery schools, 72 school clubs, 11 children's houses, 5 private school clubs,
and 1 kindergarten (overseas facility), making a total of 287 facilities for supporting child-raising at the end of the firstquarter of the current fiscal year.
The Group’s consolidated net sales were 7,099 million yen (up 11.0% year on year), operating loss was 138 million yen(236 million yen of income in the same period of last year), ordinary loss was 8 million yen (311 million yen of income－ 2 －in the same period of last year), and net loss attributable to owners of parent was 16 million yen (183 million yen ofincome in the same period of last year).
The major factors are as follows:
Net sales increased because of the establishment of new facilities as well as sales growth of existing facilities due tosubsidies increase for improving treatment of nursery staff etc.
Operating loss was incurred. This is because personnel expenses incurred prior to the recording of revenue at existing
facilities, as the allocation of nursery school teachers to facilities was ahead of entrance of children in April and May,and the operating rate did not reach appropriate level to the number of teachers, in addition to an increase in recruitment
expenses due to the strengthening of hiring nursery school teachers for sustainable growth. Since June 2018, the numberof children accepted has been steady against the application range.
In addition, both ordinary loss and net loss attributable to owners of parent were incurred, as operating loss had large
impact, although non-operating revenues grew thanks to the subsidies for responding to the increase of users of thecorporate dormitory.

(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 24,756
million yen (down 1,002 million yen from the end of the previous fiscal year).
Current assets totaled 7,976 million yen (up 90 million yen from the end of the previous fiscal year), mainly because
cash and deposits increased by 724 million yen, others increased by 87 million yen, while accounts receivable decreased
by 584 million yen and inventories decreased by 129 million yen.
Fixed assets totaled 16,780 million yen (down 1,092 million yen from the end of the previous fiscal year), mainly
because buildings and structures increased by 434 million yen, investments and other assets increased by 88 millionyen, deferred tax assets increased by 69 million yen, while construction in progress decreased by 1,606 million yen,and investment securities decreased by 88 million yen.
Total liabilities amounted to 17,349 million yen (down 653 million yen from the end of the previous fiscal year).
Current liabilities totaled 8,563 million yen (up 354 million yen from the end of the previous fiscal year), mainly
because accounts payable increased by 522 million yen, others increased by 253 million yen, and current portion of
long-term loans payable increased by 182 million yen, while income taxes payable decreased by 288 million yen, andreserve for bonuses decreased by 237 million yen, and notes and accounts payable-trade decreased by 67 million yen.
Fixed liabilities totaled 8,786 million yen (down 1,007 million yen from the end of the previous fiscal year), mainly
because long-term loans payable decreased by 1,020 million yen.
Total net assets as of the end of the first quarter of the current fiscal year totaled 7,407 million yen (down 349 millionyen from the end of the previous fiscal year), mainly because retained earnings decreased by 323 million yen,valuation difference on available-for-sale securities decreased by 69 million yen, and treasury stock decreased by 48
million yen.

(3) Consolidated Earnings Forecasts
Regarding the full-year dividend forecast and consolidated business forecasts, as of the announcement of the “Summaryof Business Results for the Fiscal Year Ended March 31, 2018[Japan GAAP] (Consolidated)” on May 9, 2018, wereceived a proposal from our shareholders concerning the election of directors at the Annual General Meeting of
Shareholders held in June 2018. As a result of this shareholder proposal, there were a large number of uncertainties about
our management structure, and so it was difficult to calculate dividend forecasts and consolidated business forecasts.
Consequently, we decided not to publish any forecasts at that time. However, at the Annual General Meeting ofShareholders and at the board of directors meeting held on the same day, the new management structure was－ 3 －established, and the future management policies and medium-term management plan were finalized, and we decided toannounce our dividend forecast and consolidated business forecasts for the fiscal year ending March 2019.
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, and theCompany does not make any promises about the achievement.
During the period from April 1, 2018 to the date of disclosure of the summary of financial results for the current firstquarter, the total number of child-raising facilities started its operation in the period is 19, consisting of 15 nurseryschools and 4 school clubs. In addition, 2 new facilities are scheduled to be opened in Okinawa prefecture in
September 2018 as a company-led nursery business.
Moreover, based on the new management structure announced in the “Notice of Formulation of ‘Long-termManagement Vision 2025’ and ‘Medium-term Management Plan’”, we will implement organizational and businessstructure reforms aimed at improving management efficiency, and provide better quality child-raising services andcontribute broadly to society. At the same time, we will cultivate new businesses and expand our earnings base.
As a result, our consolidated full-year business forecasts are 30,001 million yen in net sales, 1,847 million yen in
operating income, 2,196 million yen in ordinary income, and 980 million yen in net income attributable to owners ofparent.

－ 4 －[Quarterly Consolidated Financial Statements][Quarterly Consolidated Balance Sheet](Thousand yen)Previous Fiscal Year
(March 31, 2018)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
LandConstruction in progress
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets－ 5 －Current First Quarter(June 30, 2018)

4,455,750
81,250149,105
2,169,850
1,030,385-730
7,885,613

5,180,173
74,232
19,437
1,584,978
1,118,231-715
7,976,338

11,278,553-4,015,971
7,262,582
5,868-2,3983,470
711,365-470,331
241,033
980,894
1,613,898
10,101,879

11,861,503-4,164,299
7,697,203
5,637-2,507
3,129
778,538-493,375
285,163
980,8947,606
8,973,997

258,280
215,489473,769

250,684
214,558
465,243

629,505
3,297,662
1,823,521
750,305
812,703-16,063
7,297,635
17,873,284
25,758,898

541,445
3,273,635
1,821,443
819,546
901,035-15,978
7,341,128
16,780,368
24,756,707

(Thousand yen)Previous Fiscal Year
(March 31, 2018)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Reserve for bonuses
Other
Total current liabilities
Fixed liabilities
Long-term loans payable
Net defined benefit liability
Long-term accounts payable - other
Asset retirement obligation
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 6 －Current First Quarter(June 30, 2018)

228,9171,500,000
2,485,320
1,584,376
344,278
78,373390,055
1,597,673
8,208,995

161,4021,500,000
2,668,059
2,106,701
55,282
67,952
153,0141,850,720
8,563,132

8,934,213
538,8853,700
238,624
78,2809,793,703
18,002,699

7,913,842
558,041
314,676
8,786,560
17,349,693

1,603,955
1,449,544
5,421,026-636,635
7,837,890

1,603,955
1,449,544
5,097,208-588,235
7,562,472-46,654545
3,899-43,350-85,560
3,869
7,756,199
25,758,898-115,765
644-5,691-38,460-159,272
3,814
7,407,014
24,756,707

[Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income][Quarterly Consolidated Statement of Income][First Quarter of FY3/19](Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating revenues
Interest income
Subsidy income
Guarantee commission received
OtherTotal non-operating revenuesNon-operating expenses
Interest expenses
Equity in losses of affiliates
Demobilization costs
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary loss
Income (loss) before income taxes and others
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Net income (loss)
Net loss attributable to non-controlling interests
Net income (loss) attributable to owners of parent－ 7 －Previous First Quarter(April 1, 2017–
June 30, 2017)
6,398,219
5,490,211
908,007671,213
236,794

Current First Quarter(April 1, 2018–
June 30, 2018)
7,099,448
6,484,665
614,783
753,048-138,264

28,64745,66816,402
4,194
94,912

27,620113,344
16,402
3,708
161,074

13,8682,225
4,488
20,581
311,125

12,97817,915764
31,658-8,847677
677
310,447
260,872-134,307
126,564
183,882-13
183,896

77
77-8,924
48,762-41,281
7,481-16,406-54-16,351

[Quarterly Consolidated Statement of Comprehensive Income][First Quarter of FY3/19](Thousand yen)Previous First Quarter(April 1, 2017–
June 30, 2017)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to shareholdersof the parent company
Comprehensive income attributable to non-controllinginterests－ 8 －Current First Quarter(April 1, 2018–
June 30, 2018)

183,882-16,406

2,234-1,5883,680
4,325
188,208-69,11099-9,591
4,890-73,712-90,118

188,222-90,063-13-54

(3) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
First quarter of FY3/19 (April 1, 2018 – June 30, 2018)
None(Notes if there is a significant change in the amount of shareholders' equity)
First quarter of FY3/19 (April 1, 2018 – June 30, 2018)
None(Additional information)(Application of Partial Revision, etc. of Accounting Standard for Tax Effect Accounting)Current First Quarter (from April 1, 2018 to June 30, 2018)"Partial Amendment of Accounting Standard for Tax Effect Accounting" (ASBJ Statement No. 28, February 16,2018) and other regulations have been applied from the first quarter of the current fiscal year. Deferred tax assets
are presented in the category of investments and other assets, while deferred tax liabilities are presented in thecategory of long-term liabilities.

－ 9 －