Prime Market（2749）

https://www.jp-holdings.co.jp/

JP-HOLDINGS, INC.

Financial Results for the Q2 of Fiscal Year ending March 2024

November, 2023

FY 3/24
Second Quarter

INDEX

１

FY 3/24 Q2 Results2Long-Term Management Vision/
Medium-term Management Plan
Priority Measures for the Second Halfof FY 3/24

3
４

APPENDIX© 2023 JP-HOLDINGS, INC.

2

Every activity is for children’s smiles

Leading company in the child-raising support business
JP Holdings Group is a leading company in the child-raising support business, and operates
childcare support facilities, including nursery schools, school clubs, and children’s houses.
JP Holdings Group was founded in 1993, and started childcare business by establishing a day-care center for children of our employees
so that they can work without worry. As joint-stock corporations were allowed to do nursery business in 2000, we first spread safe, reliablechildcare services nationwide, while being supported by various people.
Group companies include Japan Nursery Service Inc., J Kitchen Inc., which cooks meals for nursery schools, J Cast Inc., which offers
classes in English, gymnastics, and eurhythmics for childcare support facilities and supports development for childcare, J Planning Sale
Inc., which plans and sells childcare-related goods, and Japan Nursery Institute for General Research Inc., which conducts training andresearch about childcare and support for development and support business by visiting nursery schools, and operates the childcare
platform “codomel,” and Kosodate Support Realty Inc., which leases real estate and offers consulting services. These subsidiaries aremanaged and supervised by JP Holdings, Inc.

3

Outline of theBusiness of
JP-Holdings

Outline of the Business of JP-Holdings

We operate the childcare support businessin an integrated manner.

Operation of nursery schools, school clubs,
and children’s houses
Operating 306 facilities around Japan(※ on September 30, 2023)

JP-Holdings
Business administration/development(new and existing businesses)

Japan Nursery Service
Operation of nursery

RealtyBrokerage, lease,management
Consulting

schools, school clubs,
日本保育サービス
and children’s houses

Kosodate Support Realty
Brokerage, rental,
management, andconsultancy ofreal estate

Cooking of lunches(Our company andother companies)
Advisory

J Kitchen
Cooking oflunches andadvisory

JP-HoldingsChildcare support business taking fulladvantage of synergy among groupcompanies

Group purchase
Sale of childcare goods
Development of groupfacilities

Japan Nursery Institute forGeneral Research

Japan Nursery Institutefor General ResearchSale ofchildcare goods

Development and operation of earlychildhood learning programs
English, exercise, eurhythmics, danceSupport for development

Training andresearchJapan Nursery Institutefor General Research

Developmentof programsfor children

Japan Nursery Institutefor General Research

Platform

Training business
BPO service
Support business byvisiting nurseryschools
Platform business
Overseas business

Platform business
Overseas business© 2023 JP-HOLDINGS, INC.

4

Our Management
Philosophy andCorporate Message

Our Management Philosophy and Corporate Message●Under the new philosophies, we will improve our child-raising support business based on thecooperation with local communities.

JP HoldingsGroup’s System
Management philosophy

To contribute to the development of a society filled withsmiles through childcare support
Every activity is for children’s smiles

Corporate message

Operational philosophy

Childcare philosophy andchild-raising philosophy

To conduct childcare and child-rearing while giving toppriority to safety and reliability
To put importance on daily childcare, so that our facilities
will be remembered foreverTo bring a smile to each child, while our staff can enjoy theirjobs
To contribute to society by operating facilities that areconnected to and support local communities
To always offer child-raising support demanded by the times

Childcarephilosophy
To nurture the skills to survive tomorrow

Child-rearing
philosophy
To develop the ability to become an ideal self
© 2023 JP-HOLDINGS, INC.

5

1

FY 3/24 Q2 Results6

FY 3/24
Q2
Results

Summary of Business Results for the Q2 of FY 3/24

Increased sales and profit from the previous fiscal year thanks to an increase in the number of children acceptedand streamlined business operation
Net sales:

Grew 4.9% year on year, as the number of children increased during the period thanks to various efforts for “developing
nursery schools and facilities that would continue to selected by customers,” including the adoption of new early childhood
learning programs and we opened new facilities and undertook the management of new facilities.

Operatingincome:Increased significantly by 34.4% year on year, as sales grew and we strove to maximize subsidies and reduce costs withseveral measures although costs augmented due to the rise in electricity charges and the skyrocketing of prices ofmerchandise we procure.

Net income: Increased 13.2% year on year, as sales grew and we made efforts to improve revenues from existing facilities, streamline
operation, and eliminate unnecessary expenses.
FY3/23Q2 Results
Net sales
Gross profit
Gross profit margin
SG&A
SG&A ratio
Operating income
Operating income margin
Ordinary income
Ordinary income margin
Extraordinary income
Extraordinary loss
Net income
Net income margin

17,207
2,907
16.9%
1,404
8.2%
1,502
8.7%
1521
8.8%
215
0
1,130
6.6%

FY3/24Q2 Results

18,057
3,332
18.5%
1,311
7.3%
2,020
11.2%
1,965
10.9%
0
0
1,279
7.1%

Rate of change
compared to therevised forecast

4.9%
14.6%
6.6%
34.4%
-

29.1%
13.2%
-

Change compared tothe previous term

850
424
1.6%
-93
-0.9%
517
2.5%
443
2.0%
-215
0
149
0.5%

full year
forecast

Rate of
Achievementof Forecast

36,390

49.6%

3,820
10.5%
3,842
10.6%

52.9%

2,497
6.9%

51.2%

51.1%

*1 : Net income represents “Net income attributable to owners of parent.”*2：The figures were rounded off to the nearest million yen.
© 2023 JP-HOLDINGS, INC.

7

FY 3/24
Q2
Results

FY 3/24 Q2 Factors for Changes in Net Sales

Net sales

Sales increased from the previous term, hitting a record high, as the number of children increased during theperiod thanks to various efforts to create "facilities that would continue to be selected by customers",” including the
adoption of new early childhood learning programs and we opened new facilities and undertook the managementof new facilities.

18,05740322
427

17,207

61
Opening of
new facilities,
and closure offacilities

Net
sales

Results for
FY 3/23 Q2

Increase due
to staffing
Increase ofchildren andcommissioned
operation ofafter-school
childcarefacilities

Increase ofsale ofphotos toguardians

Net
sales

Results for
FY 3/24 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

8

FY 3/24
Q2
Results

FY 3/24 Q2 Factors for Changes in Operating Income

OperatingincomeOperating income rose significantly from the previous term, hitting a record high, as sales grew
and we enhanced measures for curtailing and reducing costs through efficient operation, thereform of our ordering system, etc. although costs augmented due to the rise in electricity
charges and the skyrocketing of prices of merchandise we procure.

-93
424
Gross profit

1,502

OperatingincomeResults for
FY 3/23 Q2

Despite the increase inprocurement costs andutility expenses, grossprofit increased throughincreased sales from theopening of new facilities
and undertaking of theoperation of new facilities
as well as cost control by
reducing expenses such as
personnel reshuffling

2,020

SG&A
Efficient operating
structure, and control of
SG&A through reductionof various costs

OperatingincomeResults for
FY 3/24 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

9

FY 3/24
Q2
Results

FY 3/24 Q2 Factors for Changes in Ordinary Income

Ordinary
incomeOrdinary income grew considerably year on year, hitting a record high, thanks to thesales growth, efficient operation, and the curtailment or reduction of costs.

517

-4

70

Decrease in nonoperating income

Operatingincome1,965

Increase in nonoperating expenses

1,521

Ordinary
incomeResults for
FY 3/23 Q2

Operating income grewthanks to thecurtailment ofexpenses in addition to
the sales growththrough the opening of
new facilities, thecommissioned
operation of facilities,
and some measures

Ordinary
incomeResults for
FY 3/24 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

10

FY 3/24
Q2
Results

FY 3/24 Factors for Changes in Net Income Attributable to Owners of Parent

Net income
attributable toowners ofparent

Net income increased year on year, hitting a record high, as sales grew andordinary income rose considerably through the curtailment of expenses with anefficient operation system.

443
Ordinary
income

1,130

-215
77
Decrease in
extraordinary
income1,279

Augmentation ofincome taxes

Rise in ordinary
incomeNet income
attributable toowners ofparentResults for
FY 3/23 Q2

Net income
attributable toowners ofparentResults for
FY 3/24 Q2(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

11

FY 3/24
Q2
Results

Quarterly Results in the Q2 of FY 3/24

3,745

3,667

35,507

2,698

2,020
18,057

1,965
1,279

(Unit: million yen/Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

12

FY 3/24
Q2
Results

FY 3/24 Q2 Factors for Changes in Balance Sheet
Increase in shareholders equity ratio due to the decline in long-term loans-payable

Financial condition

Liabilities, Net Assets, Shareholders Equity Ratio

End of September 2023 *( ) = Difference with the end of March 2023

Liabilities

Net assets

Liabilities

Assets

20,970 million yen

35,334 million yen(-1,139 million yen)(-360 million yen)

20,970 million yen
40.7

38.1

Net assets

14,363 million yen(+779million yen)
End of Mar. 2023

End of Sep. 2023

Current assets

23,61323,537

Fixed assets

12,081

11,797

Total assets

35,69435,334Current liabilities

8,294

8,807

Fixed liabilities

13,816

12,163

Total liabilities

22,11020,970Total net assets

13,584

14,363

Million yen

22,110 million yen－－ Equity Ratio (%)

13,584 million yen

14,363 million yen

End of Mar. 2023

End of Sep. 2023

Cash and deposits
Inventory assets
Accounts receivable-other
Buildings and structures

20,027 million yen
40 million yen
2,625 million yen
12,023 million yen

Current portion of long-term loans-payable
Accounts payable
Income taxes payable
Long-term loans payable

3,816 million yen
1,713 million yen
754 million yen
10,542million yen

Retained earnings
12,190 million yen
Accumulated other comprehensive income -115 million yen(Figures are rounded down to the nearest million yen, and the equity ratio is rounded off to the nearest first decimal point place.)© 2023 JP-HOLDINGS, INC.

13

FY 3/24
Q2
Results

FY 3/24 Q2 Balance Sheet
End of Mar. 2023
(million yen)

End of Sep. 2023
(million yen)

Change(million yen)

23,61323,537-76

19,330
3,263

20,027
2,625

696
-637

12,081

11,797

-284

4,984
146
6,950

4,803
126
6,866

-181
-19
-83

35,69435,334

-360

8,294
3,654
1,681

8,807
3,816
1,713

513
162
31

13,816

12,163-1,653

12,226

10,542-1,683

Total liabilities

22,11020,970-1,139Total net assets

13,584

14,363779

Total liabilities and net assets

35,69435,334-360

Total current assets(Cash and deposits)(Accounts receivable-other)

Total fixed assets(Total tangible fixed assets)(Total intangible fixed assets)(Total investments and other assets)

Total assets
Total current liabilities(Current portion of long-term loans-payable)(Accounts payable)

Total fixed liabilities(Long-term loans-payable)(Rounded down to the nearest million yen.)© 2023 JP-HOLDINGS, INC.

14

FY 3/24
Q2
Results

FY 3/24 Q2 Statement of Cash Flows

Operating CF: Increase in income before income taxes
Investing CF: Collection of long-term loans and acquisition of property, plant and equipment
Financing CF: Repayment of long-term loans-payable and dividend payment

Unit: million yen

FY 3/24 Q2

ChangeFY 3/23 Q2

Cash flows fromoperating activities

2,878

1,410

1,468

Cash flows frominvesting activities

-83

227

-311

Free cash flow

2,795

1,637

1,158

Cash flows fromfinancing activities-2,098-1,959-138(Rounded down to the nearest million yen.)© 2022 JP-HOLDINGS, INC.

15

FY 3/24 Forecast

16

FY 3/24 Forecast

FY 3/24 Forecast●We aim to expand revenues by reforming the structures of existing facilities, enriching the early childhood programs, and so on.
●The reason why net income attributable to owners of parent decreased is that we sold the fixed assets (land, buildings, etc.) of 4
nursery schools in the previous term.
Results for FY 3/23

Changeforecast for FY 3/24

% change

35,50736,390882

2.5%Operating income（million yen）

3,667

3,820

152

4.2%

Ordinary income（million yen）

3,745

3,842

96

2.6%

Net income attributable to owners ofparent（million yen）

2,698

2,497

-201

-7.5%

Net income per share (yen)

26.06

29.32

3.26

－

5.0
Commemorative dividend1.0

6.0

19.2

Expected opening of nursery school(school)
Expected consignment of school clubs
and children’s houses (facility)

Net sales（million yen）

Dividend per share (yen)Payout ratio（％）

Ordinary dividend

1.0

－

20.5

1.3

－

2

1

-1

－

13

8

-5

－

Ordinary dividend© 2023 JP-HOLDINGS, INC.

17

Dividend policy

Dividend policy

18

⦿Dividend policy

・Regarding profit sharing, our company pays dividends while securing internal
reserve required for future business and fortification of our management structure.
・For FY 3/24, in view of business trends, we plan to increase the dividend by 1
yen from the previous fiscal year’s ordinary dividend of 5 yen to 6 yen.
Commemorati
ve dividend

¥6.0

¥6.0

¥4.50

Ordinary
dividend
5.0 yenCommemorative
dividend
1.0 yenPayout
ratio
20.5%

¥3.90

¥3.90

Payoutratio
30.４%

Payoutratio
63.4%

Payoutratio
17.3%

Payoutratio
19.2%

FY 3/20

FY 3/21FY 3/22

FY 3/23

Forecast
for FY 3/24
© 2023 JP-HOLDINGS, INC.

18

FY 3/24
New Openings

Plan for opening new facilities in FY 3/24 and the number of facilities
as of the end of September

No. of New Openings
on April 1, 2023
Nursery School: 1
School Clubs: 7

Billingual Nursery Schools 5(The Company changed licensed nursery schools and Tokyo
Licensed Nursery Schools to bilingual nursery school)on June 1, 2023
School Club: 1

No. of Facilities Operated as of the
End of September 2023
Nursery Schools: 209
School Clubs: 86Children’s houses: 11

Total: 306
Tokyo
5 Bilingual Nursery Schoolon July 21, 2023
School Club: 1
New Openings for FY 3/24

Total: 10※As of March 31, 2023, the Company closed Tokyo
Licensed Nursery School named Asc Fudomae Nursery
School. In addition, due to the expiration of the contract, theCompany withdrew from school clubs named Wakuwaku
Akabane Hiroba/Akabane Children’s Club No. 1, Wakuwaku
Akabane Hiroba/Akabane Children’s Club No. 2, Wakuwaku
Akabane Hiroba/Akabane Children’s Club No. 3, Wakuwaku
Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 1,
Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No.
2, Wakuwaku Kirigaoka-sato Hiroba/Kirigaokasatokko ClubNo. 3, Wakuwaku Fukuro Hiroba/Akakita Hibari Club No.3,
Wakuwaku Yoniwa Hiroba/Yoniwa Elementary School Icho.
Club No. 1, Wakuwaku Yoniwa Hiroba/Yoniwa Elementary
School Icho. Club No. 2, Mitaka Municipal Minamiura School
Club Annex A, Minato-ku Houka-go→ Club Honmura,Bunkyo-ku Meidai Temporary Childcare Room as of March 31,
2023.

・Asc Bilingual Nursery School Eifuku
・Asc Bilingual Nursery School Kameido
・GENKIDS Bilingual Nursery School
Shinkoyasu
・Asc Bilingual Nursery School Asakusabashi
・Ask Bilingual Nursery School Meidai-mae

Tokyo
1 licensed nursery school・Shinagawa Municipal Yashio Nishi Nursery
SchoolTokyo
9 school clubs and children’s houses(Out of which, one facility is to be opened in July 21.)・Heisei Elementary School After School Kids’ Club
・Ryusen Kids’ Club
・Chofu Municipal Chowa Elementary School Club No.2
・Minamikko Hiroba
・Minato-ku Houka-go→ Club Konan
・Takaban Elementary School Lan Lan Hiroba
・Yonsho Aozora School Club
・Asc Asakusabashi Kids’ Club (on June 1, 2023 )・Matsubara Children‘s Club No.2 (on July 21, 2023)© 2023 JP-HOLDINGS, INC.

19

FY 3/24
Q2
Status ofFacilities

No. of Facilities Operated as of the End of September 2023
No. of Facilities Operated by Region

Operate 306 facilities as of the End of September 2023

TohokuHokkaido

Licensed nurseryschools: 11

Kanto

Kinki

Licensed nurseryschools: 9
KyushuOkinawa

Licensed nurseryschools: 5
Company-led
nursery school: 1

Licensed nurseryschools: 3

Chubu

Licensed nurseryschools: 9
School clubs: 3
Children’s houses: 6

Licensed nursery schools: 158
Non-licensed nursery schools: 8
Other non-licensed nursery schools: 5
School clubs: 83
Children’s houses: 5

209 nursery schools, 86 school clubs, 11 children’s houses© 2023 JP-HOLDINGS, INC.

20

2

Long-Term Management Vision/Medium-term Management Plan

21

Long-Term Management Vision

22

Long-Term
Management
Vision/Medium-termManagement Plan

Target Indicators
We aim to develop “nursery schools and facilities thatwould be selected by customers.”

Long-Term
Management
VisionMid-termmanagement
goals(To realize nursery schools, facilities, and an enterprise that will be continuously selected by guardians,
municipalities, training schools, and officials)

Improvement and expansion of existing businesses, newbusinesses, and capital/business alliances
Target consolidated sales: 100 billion yen

To improve profitability at existing facilities and further improve thequality of childcare support, and create new value while considering thechanges in society and the business environment.
Early monetization of new business and achievement of an operating
income margin of 11% or over
(To reform the management structure and implement growth strategies in the 3 years from FY 3/24 to FY 3/26)

3rd year of the medium-term management plan (final fiscal year) For
FY 3/26, we aim to achieve net sales of 38,340 million yen and an
operating income of 4,330 million yen.

© 2023 JP-HOLDINGS, INC.

23

Long-Term
Management
Vision/Medium-termManagement Plan

Actions to Achieve Consolidated Net Sales of 100 Billion Yen

To become a leading platform provider for childcare support services in Japan
Long-Term Management Vision
Aiming to develop “nursery schools and facilities
that would be selected”
Improvement and expansion of existing businesses, newbusinesses, and capital/business alliances

Target consolidated sales: 100 billion yen
Existing business: 50 billion yen
・Collaboration between nursery schools, school clubs, andchildren’s houses (dominant strategy)
・Expansion of development support services(multifunctional facilities)
・Expansion of early childhood learning programs andbilingual nurseries

New business & M&A: 50 billion yen
・Expansion of child-rearing assistance platform business・Overseas business mainly in Asia
・Aggressive promotion of M&A and business alliances
・Responding to social issues (corporate alliances)

Medium-Term Management Plan
Structural reform, business innovation andcreation of new services and value
1. Realizing growth and competitive advantage(Creation of new businesses and differentiation strategy forexisting businesses)
2. Reforming the revenue structure(Management efficiency improvement, cost reduction,
reform of existing businesses)
3. Reforming the management foundation(Promoting personnel development, revitalizing corporate
culture, enhancing management and administration, andimproving the environment)(1) Expansion of external sales through partnership
1. Promotion of M&A-To actively pursue M&A opportunities in the childcare support business with othercompanies in the same industry, to capture the largest share in the business.

(Net sales)
Unit: 100
million yen

2. To acquire and utilize social welfare corporations

1,000-Establish a corporation to promote social welfare partnerships in order to acquire andutilize social welfare corporations, which account for approximately 70% of all nurseryschool operations.
-We will promote the improvement of the quality of childcare services, the development ofchild-rearing environments, and regional cooperation by responding to succession issues
and providing our proprietary know-how.

3. To develop overseas business mainly in Asia
-Child-rearing assistance platform, our unique early childhood learning program,consulting on nutrition management, new business development utilizing e-commerce.

(2) Business expansion through self-help efforts
1. Consistent childcare and nurturing system throughcollaboration between nursery schools and school clubs

Newbusinesses-To double the number of school clubs to 200 (expansion of new contracts)-Establishment of nursery schools in focused areas

500

2. Measures to develop nursery schools and facilities thatwould be selected- Expansion of learning programs, bilingual nursery schools, STEAMS-based child care
and afterschool programs
Expansion of developmental support (multifunctional facilities), and digitalization ofprograms

3. To develop new businesses-To expand services and functions of the child-rearing assistance platform, and operate
food business New business development in collaboration and partnership with otherindustries

Existing
businesses(3) Solving social problems through alliances with othercompanies
1. Solving issues such as poverty among children, truancy, abuse, etc.
2. Integrated education system (integrated elementary and junior high schools)© 2023 JP-HOLDINGS, INC.

24

Review of the Medium-term Management
Plan (FY 3/24 to FY 3/26) via a Rolling
Method25

Medium-termManagement Plan

Medium-term Management Plan: Management Policies
Structural reform, business innovation andcreation of new services and value

We will actively develop new business for growth, engage in M&A and promote developmentof infrastructure such as systems through structural reform and business innovation.
Furthermore, we will establish a solid business foundation to create new services and value
and establish a competitive advantage. Through these efforts, we will address parents’ needs
and concerns as well as social issues through our operations to achieve sustainable growth.

Three BasicManagement
Policies

1

Realizing growth and competitive
advantage

2

Reforming the revenue structure

3

Reforming the management foundation© 2023 JP-HOLDINGS, INC.

26

Medium-termManagement Plan

Policy in Medium-term Management Plan

Creation of new services and value

Realizing
growth andcompetitive
advantage●To analyze the industrial
environment and respond to changes●Expansion of business●To develop new business models
and make them profitable

FY 3/26●Sustainable growth●To establish new business pillars

FY 3/25

FY 3/24
Reforming themanagementfoundation

Reformingtherevenuestructure●Improvement of management
efficiency and optimal allocation ofhuman resources●Reform of the business structure(System development)●To provide new value, and develop
human resources and reform the corporate
culture (change in awareness) to support it●To strengthen the governance structure© 2023 JP-HOLDINGS, INC.

27

Medium-termManagement Plan

Target Indicators in Medium-term Management Plan

Management
goal

Structural reform, business innovation andcreation of new services and value

Business goals for
FY 3/26

Achieving an operating income margin of 11% or over and a turnoverrate of 10% or lower.
Monetizing new businessPriority
measures

1. Realizing growth and competitive advantage(Creation of new businesses and differentiation strategy for existing businesses)
2. Reforming the revenue structure(Management efficiency improvement, cost reduction, reform of existing businesses)
3. Reforming the management foundation(Promoting personnel development, revitalizing corporate culture, enhancing management and administration, andimproving the environment)

Reforming the structure of existing facilities, optimizing and systematizing head office personnel
Improving quality through personnel development and controlling turnover rate
Expanding business scale through the creation of new businesses and M&A

Management
policyChallenges●Development of nursery schools and facilities that would be selected●Reforming the structure of existing businesses●Strengthening and streamlining the management foundation●Promoting growth strategies© 2023 JP-HOLDINGS, INC.

28

Medium-termManagement Plan

Priority Measures of the Medium-term Management Plan

Basic Management Policy

Realizing growthand competitive
advantage

Priority Measures
Expansion, differentiation, and competitive advantage in existing business areas:
1) Paid programs and external sales of enhanced English, gymnastics, eurhythmics, and dance programs.
2) Lesson business utilizing extracurricular hours.
3) Operation of new learning programs, such as STEAMS-based childcare and after-school programs, andbilingual nurseries4) “Nursery Anywhere” program in which the Tokyo metropolitan area and regional nursery schools collaborate
to offer nursery schools experience and temporary care.
5) Regional collaboration to improve the child-rearing environment through the “My Nursery School System.”6) Business expansion from licensed nurseries to accredited kindergarten.
Development and monetization of new businesses:
1) Child-rearing assistance platform “codomel” (sales to parents/employees and BtoB sales).
2) Food business (sales to parents and “Kids’ Restaurant” serving dinner at nursery schools).
3) Development and consideration of new business areas (dispatch business, integrated elementary and juniorhigh schools, social welfare corporations, and others).
Active promotion of M&A:
1) Childcare-related companies for the childcare support business, etc.
2) New business areas

Reforming therevenue structure

Streamlining management and reducing costs:
Systematization, optimizing personnel allotment, strengthening financial management, and thoroughexpense control.
Measures based on data analysis, elimination of unnecessary tasks, and promotion of compact head
office.
Strengthening the revenue base:
Maximizing subsidies, optimizing personnel allotment, and increasing new contracts.

Reforming themanagementfoundation

Developing human resources and revitalizing corporate culture:
Enriching training as a foundation for human resources development and revitalizing corporate culture througha change in mindset.
Enhancing management and administration:
Tightening governance, adopting a hands-on operation system, and thoroughly managing risks.
Improving the environment:
Food loss measures, reducing CO2 emissions through power-saving measures, and engaging in social
contribution activities.

© 2023 JP-HOLDINGS, INC.

29

Medium-term Management Plan (FY 3/24-FY 3/26)

Medium-termManagement Plan

●To develop a three-year plan from FY 3/24 to FY 3/26, while considering changes in the market environment and recent business trends.
●To reform the structure of childcare support business, such as nursery school service fees, and strive to monetize new businesses.
●The decrease in ordinary income in FY 3/24 compared to the initial plan is due to investments in systems and new businesses.

Unit: million yen

Resutls

Resutls

Resutls

Forecast

FY 3/22

FY 3/23

FY 3/24

Y/yComparedtoforecast

Resutls

Y/yComparedto
Forecast
forecast

Net sales

34,3732.6%

1.4%

35,5073.3%-0.4% 36,300

Operatingincome

3,344

17.1%

22.5%

3,667

9.6%

0.9%

9.7%

1.2%

1.6%

10.3%

0.6%

0.1%

Ordinary
income

3,358

13.9%

21.7%

3,745

11.5%

0.9%

3,960

Extraordinary
income

9.8%

1.0%

1.6%

10.5%

0.8%

0.1% 10.9%

Net income

2,279

324.1%

29.5%

2,698

18.4%

5.1%

6.6%

5.0%

1.4%

7.6%

1.0%

0.4%

OperatingincomemarginNet income
marginY/y2.2%

Medium-term Management Plan
FY 3/24

Unit: million yen

Forecast

FY 3/25

FY 3/26

Y/yTargetY/yTargetY/yNet sales

36,3902.5%

37,2202.3%

38,3403.0%

Operatingincome

3,820

4.2%

4,100

7.3%

4,330

5.6%

Operatingincome margin

10.5%

0.2%

11.0%

0.5%

11.3%

0.3%

5.7%

Ordinary income

3,842

2.6%

0.4%

Extraordinary
income

10.6%

0.1%

2,497

7.5%

Net income

Net income
margin

6.9% -0.7%*1: “Rate of change compared to the previous term” and “Rate of change compared to the plan” of operating income margin, ordinary income margin,
and net income margin attributable to owners of parent indicate differences.
*2: Rounded down to the nearest million yen.
© 2023 JP-HOLDINGS, INC.

30

Priority Measures for theSecond Half of FY 3/24

31

Medium-termManagement Plan

Policies of the Management Plan for FY 3/24

Improvement of profitability and early monetization of new businesses through structural reforms
and business confirmation
Structural reform, business innovation, competitive advantage, and new business creation

Existing business domain

Sales growthProfitability improvement
Enhance and extend (superiority)
In mature markets, we will evolve the businessmodel and improve the value we offer.
(Measures to expand earnings of related
businesses)[Expansion of existing business earnings]
Reallocation of personnel to maximize subsidies
Expansion of commissioned projects for school clubs andchildren’s houses(Cooperation with nursery schools = dominance strategy)
Measures for the increase of the number of children accepted
1) My Nursery School System through regional cooperation
2) Implementation of early childhood learning programs at all
nursery schools[Expansion of related businesses]

New business domain

Change (structural reform)

Create (growth potential)

Improve operational efficiency and establish
an independent organizational structure
through business restructuring

Develop new business areas for sustainablegrowthPromote M&A as a strategic investment[Revenue structure reform]
Management efficiency improvement and cost reduction
1) Separation of on-site and headquarter operations tostreamline operations and realize a compact head office2) Systematization and data analysis3) Optimization of personnel allocation[Management infrastructure reform][New business]Monetization of the child-rearing assistance platform
1) Sale of products to employees and guardians2) Sale of childcare-related products to other companies inthe same industry
3) Operation of food businessKids’ Restaurant and temporary childcare services incooperation with local communities[New business] (Research and establishment)

Monetization of cast (English, gymnastics, and eurhythmics)
programs
1) Charging for existing programs (program revision)2) Implementation of lesson programs utilizing extracurricularhours
Fee-charging for nursery equipment and supplies
Diaper disposal and learning equipment sets

Development of human resources and revitalization of
corporate cultureKeeping turnover rate below 10%
Evaluation linked to personnel system and human resources
development(Evaluation based on KPI setting)Efficiency improvement through optimization of personnel
and systematization

New business operation
1) Global operation
Child-rearing assistance platform and personnel education
2) Integrated elementary and junior high schools3) M&A involving other companies in the same industry

Realizing growth and competitive
advantage

Reforming the revenue structure

Reforming the management foundation© 2023 JP-HOLDINGS, INC.

32

Environment Surrounding Childcare Support Business

FY 3/24In the next fiscal year, the childcare policy will change
significantly, and revenues are expected to grow.

1
2
3

4
5

Start of “the system for allowing any children toenter a nursery school (provisional name)”
Change in the number of children per nurserystaff member
Start of a system for a “nursery school booking
system”
Start of nationwide employment of regional
nursery staff
Expansion of support funds for “childcare
assistants” to qualified persons© 2023 JP-HOLDINGS, INC.

33

FY 3/24

Environment Surrounding Childcare Support Business

Drastic governmental measure for coping with the declining birthrate
A system for allowing any children to enter anursery school (provisional name)

Change in the number of children per
nursery staff member

The government is considering a system in which parents ofchildren aged 6 months to 2 years can use a nursery schoolfor up to 10 hours per month per child no matter whether
they are working.

To improve the quality of early childhood education and childcare
services, the government has revised the staffing standards for the firsttime in 75 years.
The maximum number of children aged 1 year looked after by a nurserystaff member: 6 ➡ 5
The maximum number of children aged 4 or 5 years looked after by anursery staff member: 30 ➡ 25

■Methods: ① “Regular use” of a specified childcare facility in set
hours on predetermined days of the week
② Flexible “free use” without setting hours※The government is considering a system with which
parents can check the vacancies of facilities around Japan anddirectly book their services. This system would manage
information, such as children’s medical histories and enrollment
records, and would be managed by facilities and municipalities.

Schematic diagram of the system for allowing any
children to enter a nursery school (provisional name)
A childnotenrolled
in anypreschool

Using a childcare facility
in units of hours (e.g. 1
or 2 days a week)
Families with shortworking hours or
A childcare center
the likeor the likeThanks to the measures for decreasing children on waiting lists, amountof childcare provided increased, but families raising children haveconcerns, because there have been accidents involving children andimproper operations in early childhood education and childcare facilities
in recent years. Accordingly, a system will establish a system so thatparents can leave their children at childcare facilities.

Age

No. of children

No. of nursery staff members

Infants (0 years old)

3

1Children aged 1-2 years

61Children aged 3 years

20

1Children aged 4-5 years

30

1

Age

Current

Proposal for improvement

Children aged 1 year

6 children per nurserystaff memberChildren aged 4-5 years

30 children per nurserystaff member

5 children per nurserystaff member
25 children per nurserystaff member© 2023 JP-HOLDINGS, INC.

34

FY 3/24

Environment Surrounding Childcare Support Business

Drastic governmental measure for coping with the declining birthrate
Start of a “nursery school
booking system”

Start of nationwide employmentof regional nursery staff

To make it easier for parents who resigned
from their jobs for childbirth to use a nurseryschool at the time of resuming work.
To improve the situation in which such parents
face difficulty in using a nursery school
compared with parents who resume work afterchildcare leave without resigning from acompany.

Measure for alleviating the shortage of nursery staff,
by making “regional nursery staff” in special districts
available nationwide
Revisions to the “regional nursery staff system”(1) To alleviate the shortage of nursery staff, the government

plans to make “regional nursery staff” who can work in a specificregion available around Japan(2) At present, some local governments, including Kanagawa

・System for enabling parents who resigned from theirPrefecture and Osaka, use the system as part of nationaljobs for childbirth to use a nursery school at the time

strategic special zones.

of resuming work in the same way as parents after

In 2024, the Child Welfare Act will be amended, to allow
regional nursery staff to work outside the special zones.

childcare leave(3) Regional nursery staff can work in a specific region in the* Most municipalities mainly in urban areas havesame way as qualified nursery staff, after passing the exam

adopted a “nursery school booking system” with

conducted independently by each municipality. From the fourth

Qualified personnel will be able tobecome “nursery staff,” receiving
subsidies.
To alleviate the shortage of nursery staff, thegovernment will provide subsidies when nurseryschools, etc. employ qualified personnel as“nursery assistants” to support them in resumingwork.
・Up until now, nursery assistants have been those who
did not obtain a qualification for childcare, but qualified
people, too, will be able to become nursery assistants toresume work.
・The national government will bear ¾ of costs for
subsidies while local governments will bear ¼ of thecosts.
・The subsidy amount will be 2.33 million yen per year
for facilities where up to 120 children can be enrolled,
and around 4.67 million yen for facilities where over 120
children can be enrolled.
・The government will establish the position of “careeradvisers for nursery staff,” who will provide informationon the working environment and treatment at eachnursery school.

year, they will be able to work anywhere in Japan.

which parents can use a nursery school when their 1year childcare leave ends. ➡ Parents who resigned

Purposes in revising the “regional nursery staff system”

from their jobs for childbirth, too, will be able to use aa lecture on practical skills after passing a written exam.

nursery school at the time of resuming work.

(2) As the demand for childcare grew, the government created

・To give subsidies to compensate for the decline in

the position of “regional nursery staff” in accordance withrevenues from childcare due to the vacancies until
enrollment of children*To promote nursery schools to prepare or increase new

the law on national strategic special zones in fiscal 2015. The
shortage of nursery staff became an issue in urban areas,regions suffering the population decline, etc., so thegovernment judged that it is necessary to make regional
nursery staff available around Japan.

vacancies for parents who want to resume work

Variation in the number of potential nursery staff members(1) Regional nursery staff can obtain a qualification by attending

2015

2016
No. ofregistered
ones

2017

2018

No. of nursery staff
not in service

2019

2020

No. of employees© 2023 JP-HOLDINGS, INC.

35

FY 3/24

Responses to the changes in the childcare support environment

To secure nursery staff and specialized personnel to respond to the drastic governmental measuresfor coping with the declining birthrate

Current primary governmental measures

1

Start of “the system for allowing any
children to enter a nursery school(provisional name)”

2

Change in the number of children per
nursery staff member

3

4

5

Start of a system for a “nursery school
booking system”

Start of nationwide employment ofregional nursery staff
Expansion of support funds for“childcare assistants” to qualified
persons

Changes in the business environment, and our
responses【Changes in the business environment (forecast)】●Intensification of competition for nursery staff

1) Increase in fees for introducing personnel,
especially mid-career workers
2) Intensification of competition for new graduates
3) Improvement in the working environment●Measures for securing nursery staff and specialized personnel
1) Suppress turnover rate (to decrease it to 10% or lower)
・Improvement in the working environment (motivating staff and improving treatment)
・Elimination of unnecessary tasks and management systems for respective areas

2) Enhancement of recruitment of new personnel
・To visit schools to employ more new graduates as nurserystaff (To visit schools by using graduates and cement the cooperation with training
schools)
・Measures for securing nursery staff in each area
(Staff introduction campaign, etc.)
3) Establishment of a personnel introduction firm (under discussion)・To discuss the establishment of a personnel introduction firm for securing a varietyof personnel*Considering M&A, too*Considering the acceptance and introduction of non-Japanese personnel for futurebusiness expansion© 2023 JP-HOLDINGS, INC.

36

FY 3/24

Basic
policyPriority Measures: Establishing “Competitive Advantage”
To promote “the development of nursery schools and childcare facilities that would beselected continuously” through new pioneering initiatives■ Enrichment of early childhood learning programs and implementation of new measures■ Promotion of childcare support activities in cooperation with local communities■ Promotion of consistent childcare support during babyhood, early childhood, and childhood
periods

1

Enrichment of early childhood learning
programs

3

Consistent support during babyhood, earlychildhood, and childhood periods■ Enrichment of programs for English, exercise, music, anddances■ Operation of characteristic nursery schools, such as“bilingual nursery schools”■ Implementation and enrichment of new early-childhood
learning programs, such as STEAMS Program and nurseryschools based on the Montessori method■ To double the number of after-school childcare
facilities and children’s halls to 200
・Consistent childcare support based on dominant
strategy■ To operate the business of supporting various children
in visiting a childcare center or the like2

4

Business utilizing extracurricular hours■ To implement early childhood learning programs by utilizing
extracurricular hours
・Mojikazu Land, English, music, exercise, and dancing*Holiday lessons are offered during hours in nurseryschools.

Various measures from the viewpoint ofguardians■ Childcare support activities in cooperation with local
communities
・ My Nursery School System■ To promote nursery school tours (utilizing digitaltechnology)■ Various measures for guardians (childcare services without
demanding any goods, and learning goods)© 2023 JP-HOLDINGS, INC.

37

Medium-termManagement Plan

Priority Measures: “Competitive Advantage”

To secure competitive advantage through parent-oriented response and enrichment of early childhood learning programsChildcare facilities specializing
in English
Increase the number of schools clubs
and children’s houses to 200/increaseof 10 facilities per year
Achievementof ourdominance

Facilities where native English-speaking
teachers are assigned to the nurseryschools and children can experience
English in an enjoyable manner.

Expansion of learning programs
STEAMS-based childcare andafter-school programs

Online /video-based
facility tours

As physical activity is essential for thehealthy development of infants, toddlers,and school-aged children, we will add“Sports” to STEAM and incorporate it into
daily childcare and child-rearing.

Science,Technology,Engineering,Arts (Liberal
Arts),Mathematics,Sports

To support childcarefrom babyhood toearly childhood toschool age in our area
FY 3/23
New contracts forundertaking theoperation of 12
schools clubs

Response from parents’ perspective

Nursery schools based on theMontessori method
We focus on the self-growth and learning of children,and propose an environment in which respective
children can take action at their own paces.
Five categories of assignments in Montessori
education
Daily life, education for stimulating senses, language
education, arithmetic education, and culture education

Enrichment of the website andstrengthening of communication

Parents

EC sales of various kinds oflearning goods
Bag-less childcare such as
diaper subscription

My Nursery
School System
Various support

Parents

Those whoare expected
to give birthand raisechildrenNursery schools

Lesson businessTraveling
instructors(1)

Support business by visiting nurseryschools▷Specialized staff visit each facility and offer
consultation services for development of children who
need care.
Support for disabled children: To hold training andgive instructions for enabling them to live in a group
Counselors for children, nursery staff, physicaltherapists, occupational therapists, psychologicalcounselors, and others who possess the knowledge
and experience of support for disabled children visit
facilities.
(2) Establishment of multifunctional facilities

Extracurricular early childhood learning
programs

Mojikazu Land (learning program)
English, gymnastics, eurhythmics & dance programs
Lesson business in collaboration with other companies(swimming, soccer, etc.)[Promotion of early childhood learning and new
programs]•Promote lesson business for each individual childutilizing extracurricular hours or collaboration withother companies•By utilizing extracurricular hours to offer lessons on
weekdays, children can spend more time with theirparents on holidays and alleviate their burden.

© 2023 JP-HOLDINGS, INC.

38

FY 3/24

Priority Measures : “Competitive Advantage”
To adopt a differentiation program to increase the capacity ofeach facility to accept more children

STEAMS program
To introduce our original“STEAMS” program to nurseryschools and school clubs[Overview of STEAMS program ]Childcare facilities specializing
in English
・Native English speakers are assigned as
lecturers at facilities to enable children toexperience English➡In FY 2023, we were operating 5 bilingual
nursery schools in the Kanto region.
➡Developed programs in which children
can learn and experience English in an
enjoyable fashion.
➡Native English speakers give lessons.
・Through the operation of bilingual nurseryschools, we became able to accept morechildren.

Nursery schools based on
the Montessori method
Start of operation of nursery schools based on theMontessori method
We will conduct trial operation in 2 nursery schools,
analyze the conditions, and expand operation.
Exercise of daily life

Five categories
of assignments
in Montessori
education

Language education
Children interested incharacters touch characters,
read them aloud, and write
them by tracing them with
their fingers to develop
language skills.

To learn how to use his/herown body and objects, tosit, stand, walk, tidy up, put
on/take off, give someone
a greeting, and do thecleaning.

Arithmetic education
To develop the foundation for
education for stimulating
senses, and have children
acquire the concept ofquantities by learning amounts,
numbers, and numerals.

Education for
stimulating senses
To hone five senses byperceiving large, small, long,and short objects, sounds,
colors, shapes, smells, etc.

Culture education

To stir children’s interest inthings other than language
and numbers, and allow themto actually touch things andbroaden their perspectives.

●“STEM education” is an educational method thatoriginated in the U.S. in the 2000s with the aim of fostering
IT talent. It stands for Science, Technology, Engineering,and Mathematics.
●“STEAM education” combined with liberal arts is
promoted by the Ministry of Education, Culture, Sports,
Science and Technology as a problem-solving learning
method for real-world challenges, with a focus on
cultivating interdisciplinary talent.
●Our company incorporates sports, which are essential
for the healthy development of infants, toddlers, andschool-age children, into STEAM education. We adopted
the “STEAMS Program” in April, which promotes
collaborative problem-solving and inquiry-based learning ina fun and engaging way, allowing children to expand theirinterests and curiosity while moving their bodies.

[Nursery schools based on theMontessori method]●With the Montessori method, we focus on the
self-growth and learning of children, and propose
an environment in which respective children cantake action at their own paces.
●Nursery staff support children, and children
grow through a variety of daily activities based on
their interest. In addition, they nurture social
nature and communication skills through theinteraction with others.
© 2023 JP-HOLDINGS, INC.

39

FY 3/24

Priority Measures : “Structural Reform and Business Innovation”
To maximize the value of human capital

We aim to maximize the value of human capital by utilizing exuberant personnel and realizing organizations so that diverse talents
take on responsibilities proactively with a sense of fulfillment and pride to create new value through interaction.

Revitalization of corporate
cultureHuman resource recruitment,
promotion and evaluation•Personnel allotment according
to management strategy (theright person for the right job)
•Recruiting human resources forthe next-generation management•Reform of the personnel
evaluation system

Human
resource
strategy

Ability to respond toenvironmental changes•Skills to enhance adaptability to change•Diversity development through humanresources education

Engagement

Realization of a company
whereemployees can have asense of fulfillment and
pride

Data analysis(Utilization)•Promoting active communication
beyond business companies andorganizations•Reforming employee awareness

Talent management thatutilizes individuals•Personnel allotment andpromotion that encourages
career development andindependence

Analysis for reducing
turnover rate
•Collecting and analyzing datafrom questionnaire surveys, etc. toreduce turnover rate
© 2023 JP-HOLDINGS, INC.

40

FY 3/24

Priority Measures : “Structural Reform and Business Innovation”

Realization of a compact head office through the elimination of unnecessary tasks through structural reform,
work efficiency improvement through systematization, and staff optimization through advanced measures

Business streamlining

Curbing turnover rate

Improvement in quality

Simple operations
Visualization andstandardization of tasks

Prevention of resignation by staff
through condition checks and keep
turnover rate below 10%

Improvement of management systemin each area

Business
efficiency
improvement

Personnel optimization
Restructuring within theGroup

Systematization
Personnel management and financial
affairs

Data collection andanalysis of staff
conditions
Improving operational efficiency at head
office and on the field
Data analysis to prevent turnover

Evaluation linked to the personnel
systemPromotion of systemization of humanresource systems, etc.
Data analysis and efficiency improvement ofoperations

Coordination between
the field and head
office

Review of evaluation criteria
based on new KPI settings

Bloc and area-based management system
Two nursery school blocs
School club and children’s house block

Business
efficiency
improvement

A system where eachfacility cancomplete tasks
independently
Increasing the number ofarea managers© 2023 JP-HOLDINGS, INC.

41

FY 3/24

Priority Measures : “Growth Strategies/New Businesses”

To create the second pillar of revenues after the childcare support
business early
Platform business

Personnel introduction/dispatch business・“codomel,” a child-rearing assistance platform

・Personnel introduction/dispatch business- CtoC “Replacement of childcare goods” and setting of“donation boxes”
Sale of goods to guardians- Expansion of our business domain, including BtoB
transactions
・Introduction and dispatch of personnel
・Provision of childcare support programs and goods- To start introducing personnel, mainly nursery staff,
nurses, nutritionists, and caregivers, and then launch thebusiness of dispatching them
- To introduce and manage personnel, mainly nonJapanese personnel with specific skills

・Enrichment of childcare products- To deal with guardians’ trouble in cooperation withfacilities
・Sale of food products (retort pouch food)・To increase business partners and sell products mainly
those for childcare

To discuss M&A and in-house operation

Real estate business・Global business operation- Cross-border EC- Introduction and use of overseas personnel (linkage withthe personnel introduction business)

・To prepare housing for nursery staff and overseas
personnel- In-house operation of rental of
housing and development of new real estate© 2023 JP-HOLDINGS, INC.

42

FY 3/24

Priority Measures : “Growth Strategies/New Businesses”

To strengthen the measures for early monetization of new businesses and development of new businesses
Outline of “codomel,” a child-rearing assistance platform

Sales of products targeting parents(1) To sell various items including those related to childcare(Educational goods, daily necessities, cosmetics, etc.)

Sales of products targeting employees(2) Daily necessities, cosmetics, clothing, etc.

Development of related businesses(1) Staffing business
Staffing to various industries including nursery teachers
Personnel staffing utilizing codomel(2) Real estate business (property brokerage, etc.)
In-house operation of rental of housing for nurseryteachers and property introduction

Global business

Food business (Phase 1: Retort pouch foods)
Start of the trial sale of “retort pouch food” in 10 facilities from Aug.
2023
① Selection of
products② 6 kinds ofproducts

Cooperation withfood makers

Collection of
opinions

Sale of retort
pouch food(1) Cross-border e-commerce utilizing codomel
Selling products mainly in Asia
(2) Business development utilizing human resources
Human resource development in collaboration withoverseas companies(Japanese language schools, etc.)
Accepting people from abroad in Japan(3) Business utilizing childcare support know-how
Consulting, etc.

Increase of facilities
and products© 2023 JP-HOLDINGS, INC.

43

Priority Measures : “Growth Strategies/New Businesses”

FY 3/24

Active M&A and business alliances/Expansion of investment to develop new businesses
Business scale expansion (growth strategy)

Initiating new businesses

Active promotion of M&A and business alliances(expanding business scale)

Launch of personnel introduction businessCompanies in the same industry (childcare support
businesses such as nursery school business operators)
Companies related to childcare peripheral businesses[Scenarios envisioned for the childcare industry]
School●学童
club①Marketlaunch period①市場の立ち上り期

Nursery school
●保育

②成熟期
②Maturity
period③Accelerated
restructuring period③再編加速期

市場規模
Marketsize

Number of
プレーヤー数
players

Small
小Dispersed
market
分散市場① To introduce specialized personnel, such as nursery staff,
nutritionists, and nurses, to our company and othercompanies② To accept and introduce foreign technical interns

Oligopoly
situation in the industry:Market share per company
業界の寡占度: 1社あたりの市場シェア

Large
大
Oligopolistic
market
寡占市場[Expanding existing and peripheral businesses through M&A]
Promoting large-scale M&A
Capturing intensifying competition and exhibiting competitive advantage
through a dominant position
Gaining superiority through economies of scale in oligopolyCollaborating and cooperating with other companies that have affinity with ourbusiness

Operation of the real estate business① Established the real estate company “Kosodate Support RealtyInc.” in June.
・Introduction of company housing for nursery staff (in-housemanagement)
・Rental (introduction to non-Japanese people), consulting for realestateActive promotion of M&A and business alliances

Aggressive investment<To promote business alliances and M&A
with the same and other industries>
To promote M&A that leads to oligopolyTo collaborate with other companies in different industries andperipheral businesses for childcare© 2023 JP-HOLDINGS, INC.

44

Change of thelargest shareholder
and a businessalliance

Change of the largest shareholder and a business alliance

1. Change of the largest shareholder
・Gakken Holdings, which is the largest shareholder of our company, willtransfer all of common shares of our company they hold to Duskin.

DUSKIN CO., LTD.

GAKKEN HOLDINGS CO.,LTD.

26,989,100 shares will be transferred.
Scheduled date of transfer: Nov. 30, 2023
2. Conclusion of a business alliance contract (Oct. 27, 2023)【Purpose of the business alliance】●To solve social issues and customers’ trouble by utilizing the managerial resources and know-how
of the two companies and fostering a cooperative relationship between the two companies, offer value
by creating new businesses, and maximize the corporate value of the two companies by pursuingsynergy.
●In order to maximize the effects of the business alliance, the cooperation examination committee,
which is composed of appropriate personnel selected from the two companies, discusses concrete
cooperative activities.

DUSKIN CO., LTD.

×

JP-HOLDINGS, INC.
© 2023 JP-HOLDINGS, INC.

45

4

APPENDIX

46

SDGs

Social Issues to be Solved with Our BusinessSocial issues to be solved with our businessChildcare
support

Educational
supportRelated SDGs

Improve the quality ofchildcare support
Reduce the numberof children on waitinglistsPromotion of high quality childcare support
Establishment of new facilities for
decreasing the number of children on waitinglistsDevelopment and provision of online
childcare while grasping changes in thesocial environmentSafe, reliable facilities and operation
Provision of nutritious lunch for maintaining
healthEnrichment of support for child development

Offer high quality
early childhood
learning

Development and enrichment of educational
programs (English, exercise, eurhythmics
and dancing)Development and promotion of online
education
Development of programs for early childhood
learning at home in response to changes inthe social environment
Provision of early childhood learning
opportunities

×
Partnership

Major activities

To help solve social issues based on the partnership with stakeholders© 2023 JP-HOLDINGS, INC.

47

SDGs

Social Issues to be Solved with Our Corporate Activities

Social issues to be solved withour corporate activities

Related SDGs

Major activities

Personnel
development

Improvement in expertise andactualization of independent
career development

Promotion of work style reformEnrichment of training structure
Career paths and job rotation

Empowermentof women

Actualization of diversity
minded workplaces

Workstyles tailored to lifestyles
Systems for childbirth, childcare, and nursing care
Development of a proper business environment

Human rights
and D&I*1

Actualization of diverse
workstyles

Utilization of diverse human resources and soundbusiness administration
Development and production of female leaders

Socialcontribution to
local
communities

Creation of a childcare
environment

Promotion of childcare support in local areas
Promotion of employment
Promotion of prevention of abuse

Earthenvironment

Contribution to a sustainable
earth environment

Creation of environmentally sound facilities
Reduction of CO2 emissions by installing LED lighting
Reduction of food loss and waste

Partnership

To help solve social issues based on the partnership with stakeholders

×*1: Diversity & inclusion (To create something new by utilizing different experiences and accepting differences)© 2023 JP-HOLDINGS, INC.

48

SDGs

Initiatives to Solve Social Issues

As a mission of an enterprise that operates childcare support business, we will approach impoverishedhouseholds and take measures for preventing child abuse, which are social problems.

・We will discuss various measures for raising and donating funds, and determine and actively
promote “activities” and “initiatives” for the future of children.
(*We conduct “Single Parent Household Support” annually.)

No poverty

Prevention of child abuse© 2023 JP-HOLDINGS, INC.

49

SDGs

Initiatives to Solve Social Issues

⦿To reduce environmental burdens and disposal costs, by thoroughly reusing and recycling
necessary products for childcare
⦿ To support “childcare around the world” by offering inexpensive, high quality, reusedchildcare goods, which are available only in Japan, to countries and regions in needChild-rearing assistance platform© 2023 JP-HOLDINGS, INC.

50

Supplementary
Material

Nursery School and After-School Childcare Market

Although the child population and the number of children on waiting lists are decreasing, the nursery school market is still growing.
The number of nursery facilities continues to increase year by year, while the number of enrolled children is showing a slight downward trend.
The after-school childcare market continues to grow year by year, but the number of children on waiting lists has decreased slightly to 13,000.

Number of nursery facilities (facilities)

Nursery school market

FY 3/16
FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/23(estimated)

FY 3/23(forecast)

FY 3/23
FY 3/23
FY 3/19
FY 3/18
FY 3/20 FY 3/21
(forecast)(estimated)
Source: “Childcare and Early Childhood Education Market Status and Outlook 2023,” Yano Research Institute Ltd.
FY 3/16

FY 3/17

FY 3/22

Trend in the number of registered children andchildren on waiting lists for after-school childcare

After-school childcare market

FY 3/15FY 3/19
FY 3/18
FY 3/21FY 3/17
FY 3/20
Number of nursery
Number of enrolled
facilities (facilities)
children (people)

FY 3/15FY 3/16

FY 3/17

FY 3/18

Number of registeredchildren for after-school
childcare

FY 3/19

FY 3/20

FY 3/21

Number of children
on waiting lists© 2023 JP-HOLDINGS, INC.

51

Supplementary
Material

Variations in the Number of Children on Waiting Lists●The number of children on waiting lists in FY 3/22 was 2,944, down 2,690 from the previous term.
●There are regional disparities, and the number of “hidden waiting list children” is estimated to exceed 60,000.

Variations in the number of children on waiting lists

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

Source: “Childcare and Early Childhood Education Market Status and Outlook 2023,” Yano Research Institute Ltd.

© 2023 JP-HOLDINGS, INC.

52

Supplementary
Material

Current Nursery School Teacher Shortage Situation

 The ratio of job openings to job applicants for nursery school teachers is decreasing. However, there
is a continuing shortage of nursery school teachers across Japan. (National average as of August
2023: 2.61 times) The jobs-to-applicants ratio of nursery staff in Tokyo has been rising, standing at 3.90.
Effective Opening to Application Ratio for Nursery School Teachers (X)Nationwide

Tokyo

8
7
6
5

4

●

3
●

Aug.
3.90
Aug.
2.61

2
1
0
Source: Ministry of Health, Labour and Welfare Employment Security Bureau’s General Job Placements (Report on Employment Service)© 2023 JP-HOLDINGS, INC.

53

Supplementary
Material(1)

Concept of the Child-Rearing Assistance Platform “codomel”

Platform namecodomelCodomel is a word we have coined by combining the word for children in Japanese of “codomo” with the word for product(2) Concept of thein Latin of “ merx.”
platform name and We have used the colors of the five initiatives we will attempt to achieve through this service from among the 17 SDGs: “1.
logo
No Poverty,” “3. Good Health and Well being,” “7. Affordable and Clean Energy,” “10. Reduced Inequalities” and “16. Peace,
Justice and Strong Institutions.” In addition, the circular design made by people linking their hands expresses the “circle
for everyone,” which we will create by connecting children, parents and local communities through this service.

(3) Logo

The first services of the codomel child-rearing assistance platform will be a matching service in which users can
individually sell and purchase used goods over the Internet focused on childrearing-related supplies (e.g., baby(4) Overview of the firstsupplies and clothing) mainly for the childrearing generation and a service to provide products highly needed
servicesby the childrearing generation and childrearing related information and services.
We will also collect childrearing-related supplies and clothing donated by parents at the nursery schools
operated by our group and then provide them as used goods.
We will unroll this service overseas and further expand services after the launch of this service on April 1, 2022.

© 2023 JP-HOLDINGS, INC.

54

Supplementary
Material

Recruitment of Nursery School Teachers
FY 3/23
FY 3/16

Nursery School
Teacher

Non qualified

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

As of the end of
Sep.

New
graduates

197

247

276

248

182

166

166

Mid-career
employment

241

327

325

269

292

226

322

New
graduates

23

32

46

26

9

7

5

175
Joined on Apr.
1, 2023264
Joined till the end of Sep.
2023

1

*After joining JPHD, non qualified graduates are expected and assisted to acquire nursery school teacher qualification. Started this recruitment style from FY 2016.
*Includes seconded employees to associated companies

Trend of Employee Numbers in Childcare Support Business(Persons)（人）(*Includes employees of school clubs staffs, nutritionists, etc. other than nursery school teachers)※放課後児童支援員や栄養士、保育士以外の従業員を含む

7000
Employees
社員Part-time workers
アルバイト

6000
5000
4000
3000
2000
1000
0
2014年
FY
3/14
3月末

2015年
FY
3/15
3月末

2016年
FY
3/16
3月末

2017年
FY
3/17
3月末

2018年
FY
3/18
3月末

2019年
FY
3/19
3月末

2020年
FY
3/20
3月末

2021年
FY
3/21
3月末

2022年
FY
3/22
3月末

2023年
FY
3/23
3月末

© 2023 JP-HOLDINGS, INC.

55

Supplementary
Material

Changes in the Number of Facilities Operated and the Number of Children
Accepted to Nursery Schools
FY 3/12

Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)

FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/23
As of Sep. 30

FY 3/22

11

14

16

14

10

10

11

12

12

11

11

12

61

71

85

102

118

136

148

160

171

177

182

183

Small-scale Nursery Schools

0

0

0

0

0

0

0

2

0

0

0

0

Tokyo Licensed
Schools

26

26

26

26

26

23

21

21

20

19

13

8

0

0

0

0

0

0

0

2

2

１

1

1

4

4

4

4

1

0

0

0

0

0

0

0

0

0

0

0

4

3

3

3

4

4

4

5

Private School Clubs

39
7
0

40
8
0

43
8
0

46
8
0

55
10
0

63
12
4

71
12
5

72
11
5

72
11
4

77
11
１

81
11
0

86
11
0

Kindergartens (Overseas
Facility)

0

0

0

0

0

0

1

1

1

0

0

0

148

163

182

200

224

272

289

297

301

303

306

Company-led
Non-licensed Nurseries
Nursery Non-licensed
Schools Municipality
Authorized
Non-licensed
Other non-licensed
School Clubs
Children's Houses

Total

251

*We reviewed the count by management structure in the 2Q of FY 3/16 and changed three licensed schools (public-private management) to other non-licensed nursery schools© 2023 JP-HOLDINGS, INC.

56

Supplementary
Material

Consolidated Results (Highlights)
FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23

Net sales (million yen)

26,94529,64732,16933,50034,37335,507

Operating income (million yen)

1,469

1,880

1,989

2,857

3,344

3,667

Ordinary income (million yen)

1,469

1,920

2,003

2,947

3,358

3,745

Net income attributable toowners of parent (million yen)

910

1,071

1,122

537

2,279

2,698

Net income per share (yen)

10.70

12.44

12.81

6.15

26.06

31.18

*Net sales and operating income are the amounts after the reclassification of presentation methods.
Operating income/Ordinary
Income (million yen)

Net sales (million yen)
Net sales

FY 3/17

Ordinary
incomeOperatingincomeFY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23© 2023 JP-HOLDINGS, INC.

57

Supplementary
Material

Consolidated Results (Balance Sheet/Statement of Cash Flows)

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23

Total assets (million yen)

25,75828,255

26,122

29,74034,27435,694

Net assets (million yen)

7,756

8,950

9,636

10,007

11,975

13,584

Shareholders’ equity ratio (%)

30.1

31.7

36.9

33.7

34,9

38.1

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23

Cash flows from operating
activities (million yen)

1,865

1,829

2,320

2,469

3,884

2,735

Cash flows from investing
activities (million yen)）-1,292

- 940

418

190

413

411

Cash flows from financing
activities (million yen)

-135

1,475

-3,349

2,155

1,978

-1,112Year-end balance of cash andcash equivalents (million yen)

4,455

6,816

6,206

11,02017,296

19,330© 2023 JP-HOLDINGS, INC.

58

Supplementary
Material

Dividends

The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio ofaround 30% while maintaining the necessary internal reserves for future business development and tostrengthen our management structure.
FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23

FY 3/24

Amount of dividendpershare (yen)

3.50

3.70

3.90

3.90

4.50

6.0

6.0

Payout ratio (%)

32.7

29.7

30.4

63.4

17.3

19.2

20.5

*Breakdown of year-end dividend for the fiscal year ended March 2023
Ordinary dividend: 5.00 yen, Commemorative dividend: 1.00 yen*The term-end dividend for FY 3/23 is the dividend per share approved at the 31th annual meeting of shareholders.

© 2023 JP-HOLDINGS, INC.

59

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:
5F Shinagawa Season Terrace, 1-2-70 Konan, Minato-ku Tokyo
JP-HOLDINGS, INC. Tokyo Office
Corporate Planning Department
Corporate Communications & Investor Relations Section
TEL: 03-6433-9515 e-mail : jphd_pr@jp-holdings.co.jp