Summary of Business Results for the First Quarter Ended June 30, 2019
[Japan GAAP] (Consolidated)
August 8, 2019
Company
Listed on the TSE 1
JP-HOLDINGS, INC.
Stock Code2749
URL: https://www.jp-holdings. co.jp
Representative
Koichiro Furukawa, President and Representative Director
C o n t a c t
Hikaru Kimura, Executive Officer
T E L: +81-52-933-5419
Expected date of filing of annual securities report: August 13, 2019
Expected starting date of dividend payment: ―Preparation of supplementary financial document: NoneResults briefing: None
（Rounded down to million yen）

１. Consolidated business results for the three months ended June 2019
(April 1, 2019 through June 30, 2019)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales
Million yen
7,741
7,099

Three months ended Jun. 2019
Three months ended Jun. 2018
(Note) Comprehensive income

Operating income
%
9.0
11.0

Million yen
52-138Net income attributable toowners of parent

Ordinary income%-Million yen
187-8%-Million yen
139-16%-Three months ended June 2019: 161million yen (-%)
Three months ended June 2018: -90 million yen (-%)
Net income
Diluted net income perper shareshareYenYen
1.59
Three months ended Jun. 2019
-0.19
Three months ended Jun. 2018

(2) Consolidated financial position
Total assets
Million yen
26,931
28,255

As of Jun. 30, 2019
As of Mar. 31, 2019

Shareholders’ equity
ratio%
32.9
31.7

Net assets
Million yen
8,867
8,950

(Reference) Shareholders’ equity
As of June 30, 2019: 8,867 million yen
As of March 31, 2019: 8,950 million yen

2. Dividends
End of 1Q

0.00

Annual dividend
End of 3Q
Yen-0.00-

End of 2Q
Yen

Year ended Mar. 2019Year ending Mar. 2020
Year ending Mar. 2020 (forecast)

Yen-Year-end

TotalYenYen

3.70

3.70

3.90

3.90

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

3．Forecast of consolidated business results for the fiscal year ending March 2020
(April 1, 2019 through March 31, 2020)
Net salesYear ending Mar. 2020(% change from the previous corresponding period)
Net income
Net income attributable toOrdinary income
owners of parentper share

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

Yen32,000

9.2

1,811

18.3

2,300

19.8

1,212

13.2

14.08

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

*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, 201987,849,400 shares
As of March 31, 201987,849,400 shares②Treasury stock at the end of period
As of June 30, 2019
1,707 shares
As of March 31, 2019297,807 shares③Average number of stock during period (quarterly cumulative period)
Three months ended June 201987,773,668 shares
Three months ended June 201885,625,969 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 Companyand certain assumptions that the Company deems to be reasonable at the time this report was prepared. Actual results
may differ significantly from the forecasts due to various factors. 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).

○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 ................................................................................................................... 4(1) Quarterly Consolidated Balance Sheets ........................................................................................................................ 4(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income .......................................... 6(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－ 1 －1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the first quarter of the current fiscal year, the Japanese economy was on a moderate recovery trend due to improvements incorporate earnings and the employment environment. However, the outlook for the economy remained uncertain due toheightened uncertainty about global economic trends and financial and fiscal policies, including concerns over the prolonged
trade conflicts between the United States and China.
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 the issue of the number of children waiting for admission continues to beserious. From 2018, the government has formulated various measures to improve child care facilities and secure nursery teachers
in order to provide daycare for 320,000 children by the end of March 2021. With the implementation of free child education andchildcare from October 2019, it is anticipated that people looking for entry into childcare facilities will increase, and the Company
believes that the social role played by child-raising service will become more important than ever.
Under these circumstances, the Group is continuing to expand its share of the market in collaboration with local governments
throughout Japan, while working to improve reliability and further improve the quality of childcare services.
In addition, under the "hands-on policy", the Company is collecting issues at each facility and workplace and working on
improvements and reforms to create a comfortable working environment. This has led to an increase in the number of childcare
workers hired and an increase in the retention rate. In addition, as a measure for efficient and effective organizational
management, the Company has introduced a Block System that divide Japan into the 5 operating areas, and have worked todevelop new businesses for further business expansion.
Along with the promotion of various measures, the Group has opened a total of 12 facilities in the first quarter of the current fiscal
year, including 10 nursery schools and 2 school clubs as described below, in order to respond to the growing needs of nursery
facilities.
(Nursery school)
Koto-ku Ojima No. 5 Nursery School(Apr. 1, 2019)

Shinjuku-ku Nursey Room Edogawa Nursery School(Apr. 1, 2019)

Asc Ogi Nursery School(Apr. 1, 2019)

Asc Yukigaya Nursery School(Apr. 1, 2019)

Asc Kita-Shinjuku Nursery School(Apr. 1, 2019)

Asc Kamitakaido Nursery School(Apr. 1, 2019)

Asc Midori Nursery School(Apr. 1, 2019)

Asc Hoya Nursery School(Apr. 1, 2019)

Asc Fuchukatamachi Nursery School(Apr. 1, 2019)

Asc Otsukyo Nursery School(Apr. 1, 2019)(School club)
Wakuwaku Akanishi Hiroba/Akabanedai-nishi Elementary School Club No. 2(Apr. 1, 2019)

Wakuwaku Fukuro Hiroba/Akakita Hibari Club No. 2(Apr. 1, 2019)As a result, the Group came to have 209 nursery schools, 72 school clubs, 11 children's houses, 4 private school clubs, and 1
kindergarten (overseas facility), making a total of 297 facilities for supporting child-raising at the end of the first quarter of thecurrent fiscal year.
With the establishment of the above Wakuwaku Fukuro Hiroba /Akakita Hibari Club No. 2, the Akakita Hibari
Club and the Kita City Fukuro Cultivation Room are operating as the Wakuwaku Fukuro Hiroba /AkakitaHibari Club No. 1 and the Wakuwaku Fukuro Hiroba /Akakita Hibari Club No. 3, respectively, as of April 1,
2019.
Separate from the above, the following changes have been made as of April 1, 2019: Asc Ikegami Nursery School,
which had been running since February 1, 2008 as an existing Tokyo Licensed Nursery School was changed intoa licensed nursery school; Asc Toyotama 1-chome Nursery School A and B, which had been running since April 1,
2018, as small-scale childcare facilities, were integrated and changed into a licensed nursery school; and－ 2 －Kawasaki City Miyamaedaira Nursery School, which had been running as a public facility under private
management since April 1, 2009, was changed to a private facility under private management and is now run as
Asc Miyamaedaira Nursery School.
For the first quarter of the current fiscal year, the Group’s consolidated net sales were 7,741 million yen (up 9.0% year on year),
operating income was 52 million yen (loss of 138 million yen in the same period of the previous fiscal year), ordinary income was
187 million yen (loss of 8 million yen in the same period of the previous fiscal year), and net income attributable to owners ofparent was 139 million yen (loss of 16 million yen in the same period of the previous fiscal year).
The major factors are as follows:
Net sales increased year on year, mainly due to the opening of new facilities, an increase in the number of children accepted atexisting facilities, and an increase in rent subsidies at some existing facilities.
Operating income increased year on year mainly due to an increase in sales resulting from an increase in the number of children
accepted at existing facilities, as well as a reduction in SG&A expenses resulting from a review of various expenses.
In addition, both ordinary income and net income attributable to owners of parent increased year on year thanks to an increase inoperating income and increased subsidies associated with an increase in users of the corporate 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 26,931 million yen(down 1,323 million yen from the end of the previous fiscal year).
Current assets totaled 10,477 million yen (up 18 million yen), mainly reflecting increases of 276 million yen in cash and deposits
and 101 million yen in others, while there were decreases of 246 million yen in accounts receivable and 103 million yen in
inventories.
Fixed assets totaled 16,454 million yen (down 1,342 million yen). This was mainly due to an increase of 117 million yen in buildings
and structures, while there were decreases of 1,433 million yen in construction in progress and 80 million yen in long-term loans
receivable.
Total liabilities amounted to 18,064 (down 1,240 million yen).
Current liabilities totaled 7,020 million yen (down 859 million yen), mainly due to increases of 562 million yen in accounts payable
and 494 million yen in others, while there were decreases of 800 million yen in short-term loans payable, 410 million yen in current
portion of long-term loans payable, 389 million yen in income taxes payable, and 40 million yen in consumption tax payable.
Fixed liabilities totaled 11,043 million yen (down 381 million yen). This was mainly due to a decrease of 408 million yen in longterm loans payable.
Total net assets as of the end of the first quarter of the current fiscal year totaled 8,867 million yen (down 83 million yen), mainly
due to decreases of 185 million yen in retained earnings and 81 million yen in treasury stock.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 9, 2019, but actual results may
be different from the forecast according to the changes in business situations, etc.
If there are any changes, the Company will disclose them properly.

－ 3 －2. [Quarterly Consolidated Financial Statements](1) [Quarterly Consolidated Balance Sheets](Thousand yen)Previous Fiscal Year
(March 31, 2019)

Current First Quarter(June 30, 2019)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable

6,816,439
71,657

7,092,859
62,326Inventories
Accounts receivable-other

128,900
2,491,947

25,2792,245,748

949,963-449

1,051,479-444

10,458,459

10,477,250

11,873,447

12,077,007-4,635,599-4,721,683

7,237,848

7,355,324

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

5,637

5,637

Accumulated depreciation-3,209-3,444

Machinery, equipment and vehicles, net

2,427

2,193

Tools, furniture, and fixtures
Accumulated depreciation and impairment
loss
Tools, furniture, and fixtures, net

803,177

860,073-563,703-585,760

239,473274,312Land

980,894

980,894

Construction in progress

1,437,264

4,156

Total tangible fixed assets

9,897,908

8,616,880

Goodwill
Other

227,894
114,985

220,298
114,521

Total intangible fixed assets

342,879

334,819

Investment securities
Long-term loans receivable

548,080
3,419,910

579,017
3,339,857

Guarantee deposits
Deferred tax assets

1,880,239
825,742

1,874,741
811,839

891,902906,777

Intangible fixed assets

Investments and other assets

Other
Allowance for doubtful accounts-10,027-9,788Investments and other assets

7,555,848

7,502,446

Total investment and other assets

17,796,637

16,454,14628,255,096

26,931,396

Total fixed assets－ 4 －(Thousand yen)Previous Fiscal Year
(March 31, 2019)

Current First Quarter(June 30, 2019)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable

197,7421,500,000

164,040
700,000

Current portion of long-term loans payable
Accounts payable-other

2,166,092
1,570,333

1,755,680
2,132,977

Income taxes payable
Accrued consumption taxes

435,953
81,13646,426
40,672

Provision for bonuses
Asset retirement obligations

411,135
13,500182,804-Other

1,504,249

1,998,380

Total current liabilities

7,880,143

7,020,981

Fixed liabilities
Long-term loans payable

10,454,371

10,046,178

Net defined benefit liability
Asset retirement obligations

642,495
317,269

665,230
318,093

Other

10,324

13,704

Total fixed liabilities

11,424,460

11,043,206

19,304,604

18,064,188

Capital stock
Capital surplus

1,603,955
1,449,544

1,603,955
1,448,207

Retained earnings
Treasury stock

6,184,830

5,999,234-81,685-258

Total shareholders' equity

9,156,643

9,051,138

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities-133,411-118,930

Deferred gains or losses on hedges
Foreign currency translation adjustments-7,165238-9,5103,248

Remeasurements of defined benefit plans-65,813-58,738-206,151
8,950,492-183,930
8,867,208

28,255,096

26,931,396

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets－ 5 －(2) [Quarterly Consolidated Statements of Income and Statements of Comprehensive Income][Quarterly Consolidated Statement of Income][First Quarter of FY3/20]

Net sales
Cost of sales

Previous First Quarter(April 1, 2018–
June 30, 2018)
7,099,448
6,484,665(Thousand yen)
Current First Quarter(April 1, 2019–
June 30, 2019)
7,741,378
7,002,043

Gross profit

614,783

739,334

Selling, general and administrative expenses

753,048

686,887

Operating income (loss)-138,264

52,447

Non-operating revenues
Interest income
Subsidy income
Guarantee commission received
OtherTotal non-operating revenues

27,62025,796113,344
16,402

120,534
5,467

3,7083,813

161,074

155,612

12,97817,915

14,779
954

764

4,745

Non-operating expenses
Interest expenses
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

31,65820,479-8,847

187,580

77

--

1,138

77

1,138

Income (loss) before income taxes and others-8,924

186,441

Corporate, inhabitant and enterprise taxes
Income taxes-deferred

48,762-41,281

41,983
5,018

Total income taxes

7,481

47,001

Net income (loss)-16,406

139,440

Net loss attributable to non-controlling interests
Net income (loss) attributable to owners of parent－ 6 －-54--16,351

139,440

[Quarterly Consolidated Statement of Comprehensive Income][First Quarter of FY3/20]
Previous First Quarter(April 1, 2018–
June 30, 2018)-16,406

Net income (loss)
Other comprehensive income(Thousand yen)
Current First Quarter(April 1, 2019–
June 30, 2019)
139,440

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-69,11099

Foreign currency translation adjustmentsRemeasurements of defined benefit plans-9,591
4,890

Total other comprehensive income-73,71222,221-90,118

161,661-90,063

161,661-54-

Comprehensive income

14,481-2,3453,010
7,074(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non- controllinginterests－ 7 －Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)First quarter of FY3/20 (April 1, 2019 – June 30, 2019)
None(Notes on significant changes in shareholders' equity)
First quarter of FY3/20 (April 1, 2019 – June 30, 2019)
None－ 8 －