Summary of Business Results for the Third Quarter Ended December 31, 2016
[Japan GAAP] (Consolidated)
February 2, 2017
Listed on the TSE 1
URL: http://www.jp-holdings.co.jp

Company
JP-HOLDINGS, INC.
Stock Code
2749
Representative
Kazuhiro Ogita, President and Representative Director
Contact
Mika Matsumiya, General Manager of Administration Div.
Expected date of filing of annual securities report: February 13, 2017
Preparation of supplementary financial document: Yes
Results briefing: Yes (for institutional investors and individual investors)

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

1. Consolidated business results for the nine months ended December 2016
(April 1, 2016 through December 31, 2016)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Million yen% Million yen%
Nine months ended Dec. 2016
16,720
11.1
743
-30.1
Nine months ended Dec. 2015
15,049
13.7
1,064
-4.8
(Note) Comprehensive income
Nine months ended December 2016: 552 million yen (-15.3%)
Nine months ended December 2015: 651 million yen (-20.1%)
Net income
Diluted net income perper share
share
Yen
Yen
Nine months ended Dec. 2016
6.13
Nine months ended Dec. 2015
8.36-

Million yen
883
1,136

%
-22.3
-5.1

Million yen
514
697

%
-26.2
-7.5

(2) Consolidated financial position
Total assets

Net assets

Million yen
As of Dec. 31, 2016
As of Mar. 31, 2016

Shareholders’ equity
ratio

Million yen
6,950
6,570

25,822
21,519

%
26.9
30.5

(Reference) Shareholders’ equity
As of December 31, 2016: 6,946 million yen
As of March 31 2016: 6,566 million yen

2. Dividends
End of 1Q

End of 2Q
Yen

Year ended Mar. 2016
Year ending Mar. 2017
Year ending Mar. 2017 (forecast)

0.00
0.00

-

Annual dividend
End of 3Q
Yen
Yen
-

Year-end

Total
Yen

Yen

5.00

5.00

2.00

2.00

(Notes) Revisions to dividend forecast for the current quarter: Yes

3．Forecast of consolidated business results for the fiscal year ending March 2017
(April 1, 2016 through March 31, 2017)
Net salesYear ending Mar. 2017

Operating income

Million yen%

Million yen%

22,726

10.6

1,053

-42.6

(Notes) Revisions to business forecast for the current quarter: Yes(% change from the previous corresponding period)
Net income
Net income attributable toOrdinary income
owners of parent
per share
Yen
Million yen% Million yen
%
1,235
503
-57.9
5.99
34.4

*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 standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement(4) Shares outstanding (common stock): None: None: None: None①Number of shares outstanding at the end of period (treasury stock included)
As of December 31, 2016
87,849,400 shares
As of March 31, 2016
87,849,400 shares②Treasury stock at the end of period
As of December 31, 2016
3,421,206 shares
As of March 31, 2016
4,394,106 shares③Average number of stock during period (quarterly cumulative period)
Nine months ended December 2016
83,940,674 shares
Nine months ended December 2015
83,455,294 shares(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and theaverage number of stock during period for the fiscal year ended March 2016 and the third quarter of the fiscal year
ending March 2017 includes the company's shares held by Trust & Custody Services Bank, Ltd. as trust property of"Stock Benefit Trust (Employee Stock Ownership Plan)".

*Implementation status of quarterly review procedure
・This financial summary is not subject to the quarterly review procedures pursuant to the Financial Instruments andExchange Act. At the time of disclosure of this report, the procedures for review of financial statements are being
conducted.
*Appropriate use of financial forecasts and other important matters
・Forecasts regarding future performance in this material are based on information currently available to theCompany and certain assumptions that the company deems to be reasonable at the time this report was prepared.
The company does not make promises about the achievements. Actual results may differ significantly from theforecasts due to various factors.
・The Company plans to hold results briefing for institutional investors and analysts on February 3, 2017 (Friday).
After the results briefing, the Company will promptly post presentation materials distributed at the results briefing
on the Company website. Please confirm the results briefing schedule and other information on the company
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. Summary Information (Notes) .......................................................................................................................................... 4(1) Changes in Significant Subsidiaries during the Period ................................................................................................. 4(2) Application of Accounting Procedures Specific to Preparation of the Consolidated Quarterly Financial Statements... 4(3) Changes in Accounting Policies, Accounting Estimates and Restatement .................................................................... 4(4) Additional Information.................................................................................................................................................. 4
3. 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－ 1 －1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the third quarter of the consolidated fiscal year ending March 2017, the Japanese economy was on a gentle recovery track, as
indicated by stable private consumption etc., which was supported by the improvement of the employment and income environment.
However, the economic outlook remains uncertain due to overseas risk factors, such as the concerns over the slowdown of theeconomies of China and other emerging countries in Asia, the British exit from the EU, the impact of the presidential election in
the U.S., and so on.
Under these circumstances, the need for nursery schools in the nursery service business is still at a high level, and the Groupestablished the following new facilities.
(Nursery school)
Asc Shibakoen Nursery School(Apr. 1, 2016)

Asc Ikebukuro-honcho Nursery School(Apr. 1, 2016)

Asc Kamishinden Nursery School(Apr. 1, 2016)

Asc Higashihie Nursery School(Apr. 1, 2016)

Asc Miharashi-no-oka Nursery School(Apr. 1, 2016)

Asc Gotenhama Nursery School(Apr. 1, 2016)

Asc Shidami Nursery School(Apr. 1, 2016)

Asc Meitofujigaoka Nursery School(Apr. 1, 2016)

Asc Yamada-kagitori Nursery School(Apr. 1, 2016)

Asc Ryuhoku Nursery School(Jul. 1, 2016)

Asc Tsujido Nursery School(Aug. 1, 2016)

Asc Kokuba Nursery School(Sep. 1, 2016)

Asc Yatsuyamada Nursery School(Oct. 1, 2016)(School club)Takecho Kids’ Club

(Apr. 1, 2016)

Sengoku Cultivation Room I(Apr. 1, 2016)

Sengoku Cultivation Room II(Apr. 1, 2016)

Meidai Cultivation Room

(Apr. 1, 2016)

Owariasahi-shi Shibukawa Children's Club

(Apr. 1, 2016)

Owariasahi-shi Zuihou Children's Club

(Apr. 1, 2016)

Hanabatake Children’s Club

(Sep. 12, 2016)(Children's house)
Sengoku Children's house(Apr. 1, 2016)

Owariasahi-shi Shibukawa Children's house(Apr. 1, 2016)

Owariasahi-shi Zuihou Children's house(Apr. 1, 2016)(Private school club)
AEL Yushima(Sep. 1, 2016)

In addition to the above, the Group acquired the shares of Sotetsu Amenity Life KK, and this company was made into an affiliate as
Amenity Life Inc. on September 30, 2016, which brought the four nursery schools GENKIDS Ryokuen-toshi, GENKIDS Seya,
GENKIDS Izumi-Chuo, and GENKIDS Hoshikawa, as well as the three private school clubs Elfikids Futamatagawa, Elfikids Ryokuentoshi, and Elfikids Turugamine into the Group’s facilities. As a result, the Group came to have 172 nursery schools, 62 school clubs, 12
children's houses, and 4 private school clubs, making a total of 250 facilities for supporting child-raising. In addition, Ryuhoku Nursery
School, which had been running since April 2013, relocated and reopened in July 2016 as the licensed nursery school Asc Ryuhoku
Nursery School.
For the above reasons, for the third quarter of the consolidated fiscal year ending March 2017, net sales were 16,720 million yen (up11.1% year on year), operating income was 743 million yen (down 30.1% year on year), ordinary income was 883 million yen (down
22.3% year on year), and net income attributable to owners of parent was 514 million yen (down 26.2% year on year).

－ 2 －(2) Financial Position
Assets, Liabilities and Net Assets
The total assets as of the end of the third quarter of the consolidated fiscal year ending March 2017 amounted to 25,822 million
yen, up 4,303 million yen from the end of the previous fiscal year. Current assets totaled 9,737 million yen (up 2,783 million yen
from the end of the previous fiscal year), mainly because cash and deposits increased by 3,090 million yen while accounts
receivable - other decreased by 264 million yen, and other accounts such as deferred tax assets etc. decreased by 120 million yen.
Fixed assets totaled 16,084 million yen (up 1,519 million yen from the end of the previous fiscal year), mainly because buildings
and structures, goodwill, long-term loans receivable, investment securities, other intangible fixed assets, tools, and furniture andfixtures increased by 1,465 million yen, 296 million yen, 282 million yen, 271 million yen, 122 million yen, and 53 million yen
respectively, while construction in progress decreased by 1,018 million yen.
Total liabilities amounted to 18,871 million yen, up 3,923 million yen from the end of the previous fiscal year.
Current liabilities totaled 7,325 million yen (up 1,375 million yen from the end of the previous fiscal year), mainly because shortterm loans payable increased by 1,000 million yen, other current liabilities increased by 797 million yen, and current portion of
long-term loans payable increased by 456 million yen, while income taxes payable decreased by 303 million yen, accounts payable– other decreased by 269 million yen, reserve for bonuses decreased by 206 million yen, and notes and accounts payable-tradedecreased by 61 million yen.
Fixed liabilities totaled 11,546 million yen (up 2,547 million yen from the end of the previous fiscal year), mainly because longterm loans payable, asset retirement obligation, and net defined benefit liability increased by 2,354 million yen, 78 million yen,and 69 million yen respectively.
Total net assets as of the end of the third quarter of the consolidated fiscal year ending March 2017 totaled 6,950 million yen (up380 million yen from the end of the previous fiscal year), mainly because retained earnings increased by 75 million yen andvaluation difference on available-for sale securities increased by 31 million yen, while treasury stock decreased by 267 million
yen.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have been revised from the announcement on May 10, 2016. For more informationon this issue, please refer to our announcement on February 2, 2017, “Notice of Earnings and Dividend Forecast Revision”.

－ 3 －2. Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
No applicable items.

(2) Application of Accounting Procedures Specific to Preparation of the Consolidated Quarterly Financial Statements
No applicable items.

(3) Changes in Accounting Policies, Accounting Estimates and Restatement
No applicable items.

(4) Additional Information(Application of the Implementation Guidance on Recoverability of Deferred Tax Assets)
The third quarter of the consolidated fiscal year ending March 2017 (from April 1, 2016 to December 31, 2016)“Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016)” has been applied
from the first quarter of this consolidated fiscal year.
(Transactions regarding the trust for stock-based benefits [handled by the employee shareholding association])
The third quarter of the consolidated fiscal year ending March 2017 (from April 1, 2016 to December 31, 2016)
The company adopted “the trust for stock-based benefits [handled by the employee shareholding association]” (hereinafterreferred to as “this system”) for the purposes of enhancing the welfare of employees and adding incentives for improving corporate
value.
(1) Outline of the transaction
This system is an incentive plan for returning the benefits of the increase in the price of the company’s shares to all employees
who joined the “JP Employee Shareholding Association” (hereinafter referred to as “the Shareholding Association”). For thissystem, the company concluded a contract for the trust for stock-based benefits [handled by the employee shareholding
association] (hereinafter referred to as “this trust contract”) with the company as the entruster and Mizuho Trust & Banking
Co., Ltd. as the entrustee. The trust set up in accordance with this trust contract is referred to as “this trust.” In addition,
Mizuho Trust & Banking Co., Ltd. concluded a contract for the re-entrustment of the management of trust assets, including
securities, with Trust & Custody Services Bank, Ltd. (hereinafter referred to as “Trust E”), with Trust E as the re-entrustee.
Trust E will acquire all of the company’s shares to be acquired by the Shareholding Association in advance, and sell themwhen the Shareholding Association acquires the shares. If the amount equivalent to the gain on the sale of shares isaccumulated in trust assets for this trust before the termination of the trust, through Trust E selling shares to the Shareholding
Association, it will be distributed as residual assets to the members of the Shareholding Association who satisfy the beneficiary
requirements. In addition, the trust bank guarantees the borrowings for acquiring the company’s shares, and so if there aredebts equivalent to the loss from sale of the shares due to the decrease in the company’s share price remaining at the time
when the trust terminates, the company will repay the remaining debts in accordance with the guarantee contract.
(2) The company’s shares remaining in trust
The company’s shares remaining in trust have been posted in the section of treasury shares under net assets, based on the bookvalue in trust (excluding ancillary expenses). The book value and number of the treasury shares were 1,207,910 thousand yen
and 4,392,400 shares respectively, as of the end of the previous consolidated fiscal year, and 940,362 thousand yen and
3,419,500 shares respectively, as of the end of the third quarter of this consolidated fiscal year.

(3) Book value of the debts posted through the application of the gross amount method
1,207,910,000 yen as of the end of the previous consolidated fiscal year
999,671,000 yen as of the end of the third quarter of this consolidated fiscal year

－ 4 －

[Quarterly Consolidated Financial Statements][Quarterly Consolidated Balance Sheet](Thousand yen)Previous Fiscal Year
(March 31, 2016)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Investment securities
Inventories
Deferred tax assets
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 Third Quarter(December 31, 2016)

3,777,936
41,83921,02798,453442,078
1,770,729
802,493-549
6,954,010

6,868,117
50,42623,550321,655
1,506,406
968,042-632
9,737,568

8,404,192-2,448,271
5,955,921
9,148-4,1305,017
484,281-284,812
199,469
980,894
1,759,076
8,900,378

10,349,462-2,928,049
7,421,412
9,148-4,8394,308
602,769-350,006
252,763
980,894
740,336
9,399,715

12,135
12,135296,263
134,297
430,560

313,534
2,881,772
1,628,547
164,472
679,407-15,213
5,652,521
14,565,035
21,519,046

584,668
3,164,706
1,658,134
173,091
690,412-16,298
6,254,714
16,084,990
25,822,558

(Thousand yen)Previous Fiscal Year
(March 31, 2016)

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
Asset retirement obligation
Other
Total current liabilities
Fixed liabilities
Long-term loans payable
Deferred tax liabilities
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 6 －Current Third Quarter(December 31, 2016)

191,1072,935,368
691,961
364,677
67,491
334,000
23,892
1,341,386
5,949,884

129,940
1,000,000
3,392,097
422,637
61,29649,082
127,162
4,392
2,139,028
7,325,636

8,457,330
2,240
377,7144,950
156,505
8,998,740
14,948,625

10,811,977
1,532
447,097
3,700
234,563
47,247
11,546,118
18,871,755

1,603,955
1,449,544
4,798,586-1,208,168
6,643,918

1,603,955
1,449,544
4,874,202-940,620
6,987,080-52,792-24,742-77,534
4,036
6,570,420
21,519,046-20,929-1,762-17,583-40,275
3,997
6,950,803
25,822,558

[Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income][Quarterly Consolidated Statement of Income][Third Quarter of FY3/17](Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Guarantee commission received
Subsidy income
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on impairment long-lived asset of facilities
Loss on impairment long-lived asset of Tokyo branch
Total extraordinary loss
Income before income taxes and others
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Net income
Net loss attributable to non-controlling interests
Net income attributable to owners of parent－ 7 －Previous Third Quarter(April 1, 2015–
December 31, 2015)
15,049,033
12,648,574
2,400,459
1,336,084
1,064,374

Current Third Quarter(April 1, 2016–
December 31, 2016)
16,720,891
14,163,201
2,557,690
1,814,070
743,619

42,23245,991
12,302
100,526

57,56049,15765,587
12,347
184,653

27,551868
28,4191,136,480

34,188
10,93245,120883,151

1,596
22,15245,94369,693
1,066,787
356,781
12,432369,213697,574-62
697,636398
398
882,753
247,983
119,955
367,938
514,814-38
514,853

[Quarterly Consolidated Statement of Comprehensive Income][Third Quarter of FY2017](Thousand yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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

Previous Third Quarter(April 1, 2015–
December 31, 2015)
697,574

Current Third Quarter(April 1, 2016–
December 31, 2016)
514,814-49,045
3,171-45,873
651,700

31,863-1,762
7,158
37,259552,074

651,763552,113-62-38●Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Third quarter of FY3/17 (April 1, 2016 – December 31, 2016)
None●(Notes if there is a significant change in the amount of shareholders' equity)
Third quarter of FY3/17 (April 1, 2016 – December 31, 2016)
None－ 8 －