Summary of Business Results for the Third Quarter Ended December 31, 2020
[Japan GAAP] (Consolidated)
February 12, 2021
Listed on the TSE 1
URL: https://www.jp-holdings.co.jp

Company
JP-HOLDINGS, INC.
Stock Code2749
Representative
Tohru Sakai, President and Representative Director
Contact
Ryoji Tsutsumi, Director
Expected date of filing of annual securities report: February 12, 2021
Preparation of supplementary financial document: None
Results briefing: None

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 2020
(April 1, 2020 through December 31, 2020)(1) Consolidated results of operations(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen%
Nine months ended Dec. 2020
24,228
3.3
1,362
41.2
Nine months ended Dec. 201923,4448.696544.5(Note) Comprehensive income
Nine months ended December 2020: 1,274 million yen (41.0%)
Nine months ended December 2019: 903 million yen (82.6%)
Net income
Diluted net income perper shareshareYen
Yen
Nine months ended Dec. 2020
13.07
Nine months ended Dec. 2019
9.69
-Net income attributable toowners of parent

Ordinary income
Million yen
1,831
1,338%
36.8
38.4

Million yen
1,143849%
34.6
46.3

(2) Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Million yen
As of Dec. 31, 2020
28,373As of Mar. 31, 2020
26,122(Reference) Shareholders’ equity
As of December 31, 2020: 10,569 million yen
As of March 31 2020: 9,636 million yen

Million yen
10,5699,636%
37.3
36.9

2. Dividends
End of 1Q
Yen-Year ended Mar. 2020
Year ending Mar. 2021
Year ending Mar. 2021 (forecast)(Notes) Revisions to dividend forecast for the current quarter: None

Annual dividend
End of 2Q
End of 3Q
Yen
Yen
0.00
0.00
-Year-end

TotalYen
3.90

Yen
3.90

3.90

3.90

3．Forecast of consolidated business results for the fiscal year ending March 2021
(April 1, 2020 through March 31, 2021)(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen%
Year ending Mar. 2021
33,005
4.1
1,577
2.5(Notes) Revisions to business forecast for the current quarter: NoneOrdinary income
Million yen
2,153%
7.5

Net income attributable toowners of parent

Million yen
1,163%Net income
per shareYen

3.6

13.30

*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: None: None: None: None

(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of December 31, 2020
87,849,400 shares
As of March 31, 2020
87,849,400 shares②Treasury stock at the end of period
As of December 31, 2020
380,707 shares
As of March 31, 2020
380,707 shares③Average number of stock during period (quarterly cumulative period)
Nine months ended December 2020
87,468,693 shares
Nine months ended December 201987,704,383 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 includes 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 orauditing firms.
*Appropriate use of financial forecasts and other important matters∙ 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 that form 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).

〇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 third quarter of the current fiscal year, the Japanese economy rapidly deteriorated due to restrictions on domestic andinternational economic activities caused by the spread of COVID-19. Although there were signs of recovery through thegovernment's various measures since the State of Emergency was lifted in late May 2020, the outlook remains uncertain as thespread of the disease has not been halted from the beginning of autumn.
Meanwhile, in regard to the child-raising service business, the environment surrounding childcare is rapidly changing, as evidenced
by the increase in dual-income households, the problem of children on waiting lists, a shortage of nursery school teacher, and theshift to free child education and childcare. In addition, on December 21, 2020, the government announced the “New Child-rearing
security Plan”, which aims to reduce the number of children on the waiting list. In order to cope with the increase in female
employment rate, the government plans to provide childcare services for approximately 140,000 children over the four-year period
from 2021 to the end of 2024. The role of child-raising services in society is becoming increasingly important.
Under these severe situations, the Company established a COVID-19 Control Headquarters as measures against COVID-19
infections. While coordinating with local governments, the Company gives top priority to ensuring the safety of children as well as
the safety of parents, business partners and employees. Each facility establishes its own strict safety standards. These include bodytemperature measurement every morning, hand washing, gargling and alcohol disinfection, as well as wearing masks. The head
office and Tokyo Headquarters have introduced flexible work hours and telework systems to ensure quick response.
In addition, following the resolution at the 28th Ordinary General Meeting of Shareholders held on June 25, 2020, the Company has
made a new management system with a majority of outside directors who are experts with deep knowledge and knowledge foreducation, finance, legal affairs and governance. The Group long considered the strengthening of corporate governance to be an
important initiative to ensure transparency, fairness, and prompt and decisive decision-making. To further strengthen the structure,
the Company has shifted from a Company with Auditors to a Company with an Audit and Supervisory Committee. By further
strengthening the audit and supervisory functions of the Board of Directors and realizing speedy decision-making, the Company
aims to further strengthen corporate governance and increase corporate value through sustainable growth.
Under the new management structure, we have adopted "selection and concentration" and "organizational revitalization" asmanagement reform policies. Specific initiatives include improving profitability and operational efficiency by optimizing the numberof children accepted at existing facilities and the allocation of personnel. We have also expanded child education, research anddevelopment of digital transformation systems that incorporates changes in the social environment, and reduction of operational andindirect costs by introducing new systems and reviewing operations. Through these efforts, we have been able to curtail employee
turnover rates by improving a comfortable work environment.
As for the new facility openings, the Group has opened a total of 9 facilities during the third quarter of the current fiscal year
according to the plan, including 4 nursery schools (4 in Tokyo) and 5 school clubs (5 in Tokyo).
(Nursery school)
Asc Senju Nursery School(Apr. 1, 2020)
Asc Toneri Ekimae Nursery School(Apr. 1, 2020)
Asc Oizumi Gakuen Nursery School(Apr. 1, 2020)
Asc Nerima 3-chome Nursery School(Apr. 1, 2020)(School clubs)
Wakuwaku Yanagida Hiroba/Yanagida Midori Club No. 2(Apr. 1, 2020)
Wakuwaku Yon-iwa Hiroba/Yon-iwa Elementary School Icho Club No. 2 (Apr. 1, 2020)
Chofu City Jindaiji Children’s House School Club(Apr. 1, 2020)
Mitaka City Minamiura School Club A(Apr. 1, 2020)
Mitaka City Yon-sho School Club B(Apr. 1, 2020)*1: As of April 1, 2020, with the opening of Wakuwaku Yanagida Hiroba/Yanagida Midori Club No.2, Wakuwaku Yanagida Hiroba wasrenamed as Wakuwaku Yanagida Hiroba/Yanagida Midori Club No.1. With the opening of Wakuwaku Yon-iwa Hiroba/Yon-iwa Elementary
School Icho Club No.2, Wakuwaku Yon-iwa Hiroba was renamed as Wakuwaku Yon-iwa Hiroba/Yon-iwa Elementary School Icho ClubNo.1. With the opening of Mitaka City Yon-sho School Club B, Mitaka City Yon-sho School Club was renamed as Mitaka City Yon-sho
School Club A.
*2: Separate from the above, the following changes have been made as of April 1, 2020: Asc Higashiojima Nursery School, which had beenrunning since April 1, 2008 as an existing Tokyo Licensed Nursery School, was changed into a licensed nursery school; Obu City
Kyowahigashi Nursery School, which had been running since April 1, 2010, as public nursery school under private management, waschanged into a private facility under private management and is now run as Asc Kyowahigashi Nursery School.
*3: The three private school clubs operated by Amenity Life, Inc. (Elfikids Tsurugamine, Elfikids Futamatagawa, and Elfikids Ryokuentoshi)
were closed at the end of March 2020.
*4: COHAS VIETNAM CO.,LTD, which operated the kindergartens in Vietnam, completed the transition to local licensing on October 29, 2020
and transferred it to C2C Global Education Group Co., Ltd..

-2-As a result, the Group came to have 213 nursery schools, 77 school clubs, 11 children's houses, 1 private school club, making a totalof 302 facilities for supporting child-raising at the end of December 2020.
The Group’s consolidated net sales were 24,228 million yen (up 3.3% year on year), operating income was 1,362 million yen (up41.2% year on year), ordinary income was 1,831 million yen (up 36.8% year on year), and net income attributable to owners ofparent was 1,143 million yen (up 34.6% year on year).
The major factors are as follows:
Net sales increased year on year due to the opening of new facilities, the transition from Tokyo licensed nursery school to licensed
nursery school, and an increase in the number of children admitted to existing facilities, despite a decrease in school lunch fees andrevenues from merchandise sales associated with the sale of photographs collected directly from parents, mainly due to thetemporal closure of some facilities following the State of Emergency to prevent the spread of COVID-19 during the period from its
declaration on April 7, 2020 to its lifting at the end of May.
Operating income increased year on year owing to an increase in gross profit and a reduction in selling, general and administrative
expenses as a result of efforts to reduce foodstuff costs and other expenses related to school lunches due to the temporal closure ofsome facilities at the request of local governments, in addition to the above-mentioned factors that contributed to the increase in
net sales, despite a decrease in sales associated with the prevention of the spread of COVID-19.
In addition, ordinary income increased year on year thanks to an increase in operating income and increased subsidies associatedwith an increase in users of the corporate dormitory.
Net income attributable to owners of parent increased year on year, as an extraordinary gain of 34 million yen was recorded due tothe transfer of assets of 1 company-led nursery school at the end of December 2020, and the increase in ordinary income
mentioned above, despite the fact that an extraordinary loss of 119 million yen was recorded due to the closure of 5 Tokyo licensed
nursery schools (4 at the end of the current fiscal year and 1 at the end of the next fiscal year) and 1 company-led nursery school(at the end of December 2020) due to deteriorating earnings caused by changes in the environment, including the situation ofchildren on the waiting list in the region.

(2) Financial Position
As for the financial position at the end of the third quarter of the current fiscal year, the total assets amounted to 28,373 million yen(up 2,250 million yen from the end of the previous fiscal year).
Current assets totaled 13,063 million yen (up 3,274 million yen), mainly reflecting an increase of 2,877 million yen in cash anddeposits and a decrease of 63 million yen in inventories.
Fixed assets totaled 15,310 million yen (down 1,024 million yen). This was mainly due to an increase of 185 million yen in
investment securities, while there were decreases of 347 million yen in buildings and structures, 295 million yen in construction inprogress, 289 million yen in deferred tax assets, 121 million yen in long-term loans receivable.
Total liabilities amounted to 17,803 million yen (up 1,317 million yen from the end of the previous fiscal year).
Current liabilities totaled 7,132 million yen (up 1,212 million yen), mainly due to increases of 1,377 million yen in the current
portion of long-term loans payable, 394 million yen in others, and 78 million yen in accounts payable – other, while there weredecreases of 408 million yen in provision for bonuses, 232 million yen in income taxes payable, and 52 million yen in notes andaccounts payable-trade.
Fixed liabilities totaled 10,670 million yen (up 105 million yen), mainly due to increases of 83 million yen in obligations forretirement plan and 29 million yen in asset retirement obligation.
Total net assets at the end of the third quarter were 10,569 million yen (up 933 million yen), mainly due to 802 million yen
increase in retained earnings and a 111 million yen increase in valuation difference on securities.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 13, 2020, 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.
Since the timing of the containment of COVID-19 remains uncertain, there is a possibility that it will have a major impact on
consolidated results depending on the spread and containment of the infection and other factors in the future.

-3-2. [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Thousand yen)Previous Fiscal Year
(March 31, 2020)

Current Third Quarter(December 31, 2020)

AssetsCurrent assets
Cash and depositsNotes and accounts receivable-trade
Inventories
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets

6,206,487

9,083,540

76,288111,259

76,94447,3752,410,895
1,009,077

2,837,405
1,044,024-25,759-26,1429,788,250

13,063,147

Fixed assets
Property, plant and equipment
Buildings and structures

12,237,506

12,356,510

Accumulated depreciation and impairment-5,349,352-5,815,901

Buildings and structures, net

6,888,153

6,540,609

5,637-4,146

203-84

Machinery, equipment and vehicles, net

1,490118

Tools, furniture and fixtures
Accumulated depreciation and impairment

923,279-671,412

956,897-724,303

Machinery, equipment and vehicles
Accumulated depreciation

251,866

232,594Land
Construction in progress

Tools, furniture and fixtures, net

980,894
497,896

980,894
202,430

Total tangible fixed assets

8,620,302

7,956,647

Goodwill
Other

197,508
50,169174,719
42,926

Total intangible assets

247,678

217,646

Intangible assets

Investments and other assets
Investment securities

436,234

621,894

Long-term loans receivable
Guarantee deposits

3,284,007
1,906,120

3,162,193
1,901,303

Deferred tax assets
Other

1,128,962
720,593

838,986
619,560

Allowance for doubtful accounts-9,445-8,217

Total investments and other assets

7,466,474

7,135,721

16,334,455

15,310,014

26,122,705

28,373,162

Total fixed assets
Total assets-4-

(Thousand yen)Previous Fiscal Year
(March 31, 2020)

Current Third Quarter(December 31, 2020)

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

195,720
1,639,460

142,734
3,016,996

Accounts payable – other
Income taxes payable

1,535,400
415,324

1,614,367
183,101

Accrued consumption taxes
Reserve for bonuses

117,626
554,836

135,542
146,342

Asset retirement obligation
Other

10,894
1,451,683

47,5801,846,318

Total current liabilities

5,920,945

7,132,984

9,479,911
757,052

9,469,307
840,612

320,567
7,979

349,669
11,245

10,565,510

10,670,835

16,486,455

17,803,820

Shareholders’ equity
Capital1,603,955

1,603,955

Capital surplus
Retained earnings

1,449,544
6,982,526

1,449,544
7,784,974

Fixed liabilities
Long-term debt
Obligations for retirement plan
Asset retirement obligation
Other
Total fixed liabilities
Total liabilities
Net assets

Treasury stock-107,515-107,515

Total shareholders’ equity

9,928,510

10,730,958

Accumulated other comprehensive income
Valuation difference on available-for- salesecurities
Deferred gains or losses on ledges-224,438-113,390-5,537-7,804Foreign currency translation adjustments
Remeasurements of defined benefit plans

2,610-64,895-40,421

Total accumulated other comprehensive income-292,261-161,616

9,636,249

10,569,341

26,122,705

28,373,162

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][Third Quarter of FY3/21](Thousand yen)
Current Third Quarter(April 1, 2020
- December 31, 2020)
24,228,306
20,649,394

Net sales
Cost of sales

Previous Third Quarter(April 1, 2019
- December 31, 2019)23,444,221
20,371,575

Gross profit

3,072,646

3,578,911

Selling, general and administrative expenses

2,107,612

2,216,349

Operating income

965,033

1,362,562

Non-operating income
Interest income

76,16765,966

338,7225,467

451,289-

Subsidy income
Guarantee commission received
Other

10,123

7,851

Total non-operating income

430,480

525,107

Interest expenses
Demobilization costs

42,7501,289

42,796-

Commission fee
Other

3,165
9,328

13,052Non-operating expenses

Total non-operating expenses

56,53355,848

1,338,980

1,831,821

Gain on sales of fixed assets
Gain on reversal of asset retirement obligations-

3,606
11,100Gain on sales of affiliates
Other-

13,735
5,866

Total extraordinary income-34,308

Loss on retirement of fixed assets
Loss on sales of investment securities

1,215
2,642

3,277
-

Impairment loss (on facilities)

3,894

115,907

Ordinary income
Extraordinary income

Extraordinary loss

7,751

119,184

Income before income taxes and others

Total extraordinary loss

1,331,228

1,746,945

Corporate, inhabitant and enterprise taxes
Income taxes-deferred

367,312114,384

374,192
229,177

Total income tax

481,697

603,369

Net income

849,530

1,143,575

Net income attributable to owners of parent

849,530

1,143,575-6-

[Quarterly Consolidated Statement of Comprehensive Income][Third Quarter of FY3/21]
Previous Third Quarter(April 1, 2019
- December 31, 2019)849,530(Thousand yen)
Current Third Quarter(April 1, 2020
- December 31, 2020)
1,143,575

Valuation difference on available-for- sale securities
Deferred gains or losses on ledges

27,4862,446

111,047-2,266

Foreign currency translation adjustments
Remeasurements of defined benefit plans

3,209
21,224-2,61024,474

Total other comprehensive income

54,367

130,644903,898

1,274,220

903,898

1,274,220--Net income
Total accumulated other comprehensive income

Comprehensive income
BreakdownComprehensive income attributable to owners of parent
Comprehensive income attributable to owners of noncontrolling shareholders-7-

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)
Current Third Quarter (April 1, 2020 – December 31, 2020)
Not applicable(Notes on significant changes in shareholders' equity)
Current Third Quarter (April 1, 2020 – December 31, 2020)
Not applicable-8-