JP-HOLDINGS, INC.
Financial Results for the 2Q of the Fiscal Year ending March 2020

TSE 1 (2749)
https://www.jp-holdings.co.jp/

ＩＮＤＥＸ◆ Business Environment Surrounding the Company
･･･P4
･･･P5
･･･P6
･･･P7
･･･P8

・Current Waiting List Situation
・Current Nursery School Teacher Shortage Situation
・Business Environment
・Policies for Free Child Education and Childcare
・Medium- to Long-term Business Environment◆ Medium- to Long-term Corporate Strategy
・Management Policy for FY3/20
・Target Performance Indicators
・Medium- to Long-term Corporate Strategy
・Long-term Management Vision
・Medium-term Management Plan

◆ 2Q FY3/20 Results
・2Q FY3/20 Financial Highlights
・2Q FY3/20 Factors for Changes in Net Sales
・2Q FY3/20 Factors for Changes in Operating Income
・2Q FY3/20 Factors for Changes in Ordinary Income
・2Q FY3/20 Profit and Loss Statement
・Progress of Business Forecasts for FY3/20
・FY3/20 Forecast
・2Q FY3/20 Financial Condition
・2Q FY3/20 Balance Sheet・Status of New Openings as of the end of September 2019・No. of facilities Operated as of the End of September 2019
・Changes in the Number of Facilities Operated and the
Number of Children Accepted to Nursery Schools･･･P10･･･P11･･･P12･･･P13･･･P14-P15･･･P17･･･P18･･･P19･･･P20･･･P21･･･P22･･･P23･･･P24･･･P25･･･P26･･･P27･･･P28◆ FY3/20 Management Strategy
2Q Progress Report
・FY3/20 Management Strategy
・FY3/20 Measure (1) Recruitment of Nursery School
Teachers【2Q】Nursery School Teachers Recruiting Plan
【Supplementary Material】Annual Salary of Nursery･･･P30･･･P31･･･P32･･･P33

School Teacher【Supplementary Material】Recruitment of Nursery･･･P34

School Teachers

・FY3/20 Measure (2) “Curb resignations”
・FY3/20 No. of Children Accepted at Facilities (plan)･･･P35･･･P36･･･P37【2Q】Number of Children Accepted
・Measure (3) Introducing Block System and its Effects ･･･P38･･･P39・Measure (4) “ Team building”･･･P40【2Q】Team Building Activities･･･P41・Measure (5) “Develop and promote new business”･･･P42・Medium-term Management Plan: Promote New
Businesses･･･P43
・ESG Initiatives◆ APPENDIX
・Company Overview･･･ P46-P51
・Changes in Business Results･･･ P53-P55

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2

Business Environment
Surrounding the Company

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3

Current Waiting List Situation
National Waiting List Map (April 1, 2019)

Hokkaido

The number of children on waiting lists as of Apr.
2019 is 16,772 (3,123 decrease YoY).
The problem of children on waiting lists remains
serious. This is especially so in the Tokyo
metropolitan area and prefectures where major
cities (e.g. ordinance-designated cities) are located.
(Refer to the map on the right.)

2019年4月1日現在
平成31年4月1日現在
Current as of April 1 ,2019

Prefecture

No. of Children on
the waiting List
152

Aomori

0

Iwate

175

Miyagi

583

Akita

65

Yamagata

45

Fukushima

274

Ibaraki

345

Tochigi

52

Gunma

21

Saitama

1,208

神奈川県1,020
新潟県 3,690
Kanagawa
富山県 750
Niigata2
石川県
Toyama0
福井県
Ishikawa0
山梨県 10
Fukui
長野県
Yamanashi0
岐阜県 80NaganoGifu
2
静岡県
Shizuoka
愛知県 212Aichi
三重県 258Mie
滋賀県 109Shiga459
京都府 86
Kyoto
大阪府 589Osaka
兵庫県 1,569
Hyogo
奈良県 198
Nara
Chiba

Tokyo

No of Prefectures(都道府県数100人未満Less than 100

100 or more but less than 500
100人以上500人未満
500 or more less than 1,000
500人以上1,000人未満
1,000
or more less than 3,000
1,000人以上3,000人未満

(23)
(14)
(14)
(15)
( 1)
( 0)

(23)
(14)
(14)

(15)

3,000 or more but less than 5,000(11)
3,000人以上5,000人未満
5,000 or more
5,000人以上(10)
注：各道府県には政令指定都市・中核市を含む。
Source: Ministry of Health, Labour and Welfare’s Nursery School Situation Summary (April 1, 2019)

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Wakayama

54

Tottori0

Shimane0

Okayama

580

Hiroshima

128

Yamaguchi

40

Tokushima

73

Kagawa

182

Ehime

103

Kochi

35

Fukuoka

1,232

Saga

24

Nagasaki70

Kumamoto

178

Oita

25

Miyazaki

43

Kagoshima

349

Okinawa

1,702

Total

16,7724

Current Nursery School Teacher Shortage Situation
The effective opening to application ratio for nursery school teachers remains at ahigh level. There continues to be a shortage of nursery school teachers on anationwide scale.

The effective opening to application ratio for nursery school teachers in Tokyo isover 6-fold. The employment situation in the metropolitan area remains extremely
difficult. Effective Opening to Application Ratio for Nursery School teachers(X)

8

6.96

7

●

Nationwide

Tokyo

6

5.14

5
4

3.58
●

2.83

3
2
1
0

Source: Ministry of Health, Labour and Welfare Employment Security Bureau’s General job placements (Report on Employment Service)
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5

Business Environment
Measures to Cope ｗｉｔｈ Current and Future Changes of Environment■Children on Waiting Lists
Present to Future
・Demand of nursery is increasing because of
women’s participation in society and this issue
becomes serious
・In the future children on waiting lists will
decrease by countermeasures of government andmunicipal units, impact of declining birthrate■Change of Child-raising Style due
to Women’s Participation in Society
・Women’s participation is increasing every year
and even in rural areas dual income families are
increasing
・Fathers’ involvement (child-care leave) is
increasing■Measures of Government andMunicipal Units
・Various measures are promoted in advance toeliminate children on waiting lists
・Further salary increase for teachers・Free fees measures (Oct. 2019)

Measures to
Cope wit
Change ofEnvironment

Qualitative
Improvement ofChild-raising
Establish New
Child-raising
Business■Declining Birth Rate・In spite of gov’t measures birth rate is declining
・Combined with aging problem, demographic
difference between Tokyo metropolitan area
and rural area exists■Complex Environment
・Currently cope with needs to solve children on
waiting lists issue, but in the future forecast
serious competitive environment due to impact
of declining birth rate etc.
・Seek to exit from homogenization■Problems of Child-raising
Business
Measures to
Avoid
Impact from
Outside・Performance is impacted by number of children,
gov’t and municipal policies, regulation changes
such as declining birth rate, decreasing children on
waiting lists, change of subsidy etc.
・Shortage of nursery school teachers andintensifying competition to secure personnel(ratio of 7 openings to every application inTokyo)

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6

Policies for Free Child Education and Childcare
Japan started free child education and childcare for age 3-5 children from October 2019
Increase demand for child care and improves quality
Source from Ministry of Health,Labour and Welfare

Use

Age 3 to 5

Use

Kindergartens, nursery schools, licensed children’s
schools, nursery schools for disabled children

All-day/extended kindergarten careChildren certified as
requiring daycareFree(up to ¥25,700/month fornursery school)

Free (up to ¥25,700/month) for extended care
and an additional ¥11,300/month (difference vs.
¥37,000/month) for extra childcare

Non-licensed nursery facility and babysitters, etc.
・Dual-income parents
・Single, working parent

Use (multiple)

Multiple use

Use

Age 3 to 5
All other children
・ Stay-at-home father, etc.

Multiple use

Free up to¥37,000/month(includes non-licensed nursery facilities and facilities
certified by local governments, etc.)

Kindergartens, nursery schools,
licensed children’s school

Nursery schools for disabledchildren

Both free(kindergarten up to ¥25,700/month)Free

Kindergartens, licensed children’s schools,
nursery schools for disabled children
Kindergartens, licensed children’s
schools

Nursery schools for disabledchildren(up to ¥25,700/month fornursery school)
Both free(kindergarten up to ¥25,700/month)

Note 1: When using an extended kindergarten care or non-licensed childcare facility, children must have a certified
reason for requiring this care in order to use these facilities at no cost.

For households that do not pay the residents tax, children from age 0 to 2 can also receive free care up to ¥42,000/month.
Note 2: For non-licensed childcare facilities and babysitters, care is free only when an non-licensed childcare facility notice is submitted and standards of the regulatory authority are satisfied. However,there is a five-year transitional period during which care is free even when these standards are not satisfied.
*This also includes regional childcare and childcare facilities operated by companies (standard utilization fee).

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7

Medium- to Long-term Business Environment
Whereas JPHD’s Child-raising Business is achieving growth as various countermeasures are being promoted
by government and municipal units to eliminate the problem of children on waiting lists, challenges such as
shortages of nursery school teachers and the declining birthrate need to be addressed.

Ｓtrengths

Ｗ eaknesses■ Competitive advantages as a leading company in child-raising
support services• Track record and expertise of the Child-raising Business (sizecombined with reliability)• Approx. 20,000 children, and employment exceeding approx. 6,000
childcare workers■ Group-wide, comprehensive service structure• Centralized management of the Child-raising Business■ Safety and security• Framework offering safety and security free of serious accidents■ Programs of government and municipal units, and changes ingovernment policy• Effects of changes in programs and government policy on
subsidies• Effects of systemic changes with respect to operations subject tolicensing■ Chronic shortage of nursery school teachers• Chronic shortage of nursery school teachers caused by factors
such as the opening of new facilities to eliminate the problem ofchildren on waiting lists and increasing numbers of children
accepted to existing facilities

Ｔhreats

Ｏ pportunities■ Government and municipal units are promoting various
measures to eliminate the problem of children on waiting lists• Subsidies are increasing and the business environment is otherwise
conducive to opening new facilities■ Number of service users increasing due to introductions of freeearly childhood education and childcare beginning in October
2019• Increase in nursery users amid the likelihood of a higher percentageof women in the workforce due to free early childhood educationand childcare■ Decreasing childcare demand in the future associated with Japan’s
declining birthrate• Guardians are able to be selective due to the declining birthrate■ Market entry from different industries, M&As
• Market entry from players in the education sector, M&As by
players from the same and different industries■ Changes in programs of government and municipal units andgovernment policy• Decrease in subsidies and systemic change

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8

Medium- to Long-term
Corporate Strategy

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9

Management Policy for FY3/20
Aiming to provide “the highest quality child-raising support services in Japan”

Fulfill High Quality
Nursery BusinessContinue Confidence Building
with Stakeholders

ExpandCurrent
Business

Enhance
Relationshipwith Society

Improve Enterprise Value
through Child-raising
Business

Enhance Governance& Compliance

Optimize Enterprise
Resources
Reform Organization・Develop Human
Resources

Provide Environmentof Nurturing Children
with Relief

Strengthen
Management
Base

New Strategy Long term Management
for Growth
VisionMedium termManagement Plan
(3 years)

Change Corporate Culture“Hands on Approach” “Employee Participation in Management System”“Friendly Working Environment”
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10Target Performance Indicators

Medium-termManagement
Targets

Long-termManagement Vision

Long-term Management Vision 2025：Fulfill Consolidated Sales 100 BYen
Aiming to become “the highest quality child-raising services
company in Japan”

FY3/25

Existing Business 50.0 billion yen
New Business10.0 billion yen
Business or Capital Alliance40.0 billion yen

Further improve quality of child raising services
Create new businesses, form alliances and partnerships withnursery enterprises

FY3/20FY3/21

Net sales 32.0 billion yen
Ordinary income 2.3 billon yen
Net sales 35.0 billion yen
Ordinary income 2.7 billion yen
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11

Medium- to Long-term Corporate Strategy
Priority Measures to Fulfill Management Vision

GrowthFurther Qualitative
Growth of Childraising

Expand Existing
Business[Medium-term Management Plan toestablish foundations for growth]• Expand the Child-raising Business• Further improve childcare quality• Promote work-style reforms• Develop and promote new businesses

Strengthen
Management
through Business
Structure Reforms

Promote and expand
growth strategy

Create New
Business Value

FY3/2025

FY3/21
FY3/19FY3/18

Steer towardbusiness growth[Promotion and expansion of growth strategy]• Increase volume of Child-raising Business andimprove quality• Promote and expand new businesses• Actively promote capital and business alliancesTime
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12

Long-term Management Vision
The Second Founding Stage

Expand Business Scale
Grow as leading company ofchild-raising

Promote Growth
Strategy

Develop Infrastructure
targeting FY3/25 ending

Consolidated
Sales
100BYenFulfill Consolidated Sales 100BYen on FY3/25 ending
40BY

Business orCapitalAlliance

10BY

New
Business

35BY
32BY
29.2BY

50BY

26.7BY
22.7BY

Existing
Child-raising
Business

20.5BY
17.8BYFY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

Medium-termManagement Plan

FY3/22

FY3/23

FY3/24

FY3/25

Promote to Fulfill Sales 100BY

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13

Medium-term Management Plan Forecast (Consolidated）
Sales Revenue

26.7B
Y

29.2B
Y

New Facilities(Total)

322

25

35BY
32BY

2.7BY

272

289

302

9.4%
up

9.2%
Up

1.5BY

21.4% Up
Ordinary
Income Rate
6.6%

2.3BY

17.4% Up

19.8% Up

Ordinary
Income Rate
7.7%

300

Ordinary
Income Rate
7.2%

17

250

15
15

200

12

11

9

10

150

4

5

5

5

2019年
FY3/193月期

2020年
FY3/203月期

 Priority measure

2021年
FY3/21
3月期

2018年
FY3/183月期

2019年
FY3/193月期

2020年
FY3/20
3月期

2021年
FY3/21
3月期

100

50

1
2018年
FY3/18
3月期

350

20

1.9BY

9.4%
Up

(New
Openings)

Ordinary Income002018年 FY3/19
2019年
FY3/18
3月期

3月期

2020年
FY3/20

2021年
FY3/213月期

3月期

Nursery Schools
School Clubs, Children’s Houses
Kindergarten (Overseas Facility)
Total

1. Strengthen safety measures and further improve the quality of child-raising
2. Increase the number of children admitted by opening new facilities and increasing the number of nursery school
teachers at existing facilities
3. Expand investment in human resources (reinforcement of recruitment activities, review of personnel system)
4. Ensure thorough compliance and further strengthen corporate governance
5. Reorganization aimed at improving management and earnings management systems and management efficiency
6. Expand earnings base by developing and promoting new businesses
7. Synergy measures (business alliances and capital alliances) in the child-raising support and education industries

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14

Medium-term Management Plan Forecast (Consolidated)
FY3/20FY3/21

Sales Forecast

32BYen35BYenOrdinary Income
Forecast

2.3BYen

2.7BYen Forecast of New Opening
Nursery Schools
Estimated number of
openings

Estimated number ofchildren admitted
in the first year

Estimated number ofschool clubs andchildren's houses consigned

FY3/20

12 facilities

580 children

5 facilities

FY3/21

15 facilities

630 children

5 facilities*The estimated number of nursery schools, and estimated number of school clubs and children's houses consigned for the
fiscal year ending March 2020 includes the number of facilities that were opened in April 2019

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15

2Q FY3/20 Results

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16

2Q FY3/20 Financial Highlights
 Net sales increased YoY due to the opening of new facilities and an increase in the number of children accepted
at existing facilities in line with our plans for recruiting nursery school teachers, as well as an increase in subsidies
related to the salary improvement for teachers.
Net sales: 15,517 million yen (up by 8.7% YoY; up by 1,239 million yen compared to the previous fiscal year)Operating income increased YoY due to an increase in net sales reflecting an increase in the number ofchildren accepted, as well as the reduction of SG&A expenses through reviewing cost structure.

Both ordinary income and net income attributable to owners of parent increased YoY due to an increase in

net sales and an increase in subsidies related to an increase in the number of the company dormitories’ users.
Operating income: 496 million yen(up by 194.9% YoY; up by 327 million yen compared to the previous fiscal year)
Ordinary income: 744 million yen(up by 86.4% YoY; up by 345 million yen compared to the previous fiscal year)
Net income attributable to owners of parent:
516 million yen (up by 118.9% YoY; up by 280 million yen compared to the previous fiscal year) Opening of new facilities/Operating facilities
New facilities opened: 10 nursery schools (planned: 12 schools) and 2 school clubs (planned 5 facilities)
Total number of childcare facilities: 297
209 nursery schools, 72 school clubs , 11 children’s houses, 4 private children’s houses
1 kindergarten (overseas)(Figures are rounded down to the nearest million yen. The percentage change is rounded off to the nearest first decimal point place.)

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17

2Q FY3/20 Factors for Changes in Net Sales
Net sales

Increased by 8.7% due to the opening of new facilities and an increase in thenumber of children accepted in existing facilities.

393
771

14,278Net
sales

Increase due
to opening of
new facilities
and transition
to licensed
facilities

72-34
Expiration ofcontract andclosureIncrease due
to salaryimprovement37

15,517

OthersIncrease in thenumber ofchildren
accepted inexisting facilities

Net
sales

2Q FY3/19

2Q FY3/20(Unit: million yen/ Rounded down to the nearest million yen. )Copyright©JP-HOLDINGS, INC. All Rights Reserved.

18

2Q FY3/20 Factors for Changes in Operating Income
OperatingincomeIncreased due to an increase in the number of children accepted
and a decrease in SG&A expenses through a review of various
expenses
291

36
SG&A

496

(36 million yen down)

Gross profit

Decrease in SG&A
through a review ofvarious expenses

Operatingincome168

OperatingincomeIncrease in gross profit
due to an increase in
the number of children
accepted

2Q FY3/20

2Q FY3/19(Unit: million yen/ Rounded down to the nearest million yen. )Copyright©JP-HOLDINGS, INC. All Rights Reserved.

19

2Q FY3/20 Factors for Changes in Ordinary Income
Ordinary
incomeIncreased due to an increase in operating income and anincrease in the number of the company dormitories’ users-4327

Non-operating income
Subsidies fordormitory expenses
Up by 25 million yen
Guarantee fees andothersDown by 30 million
yen

Operatingincome399

Ordinary
income22744

Down by 22 million yen

Non-operating
expensesDismantling
expenses, etc.
Down by 22
million yen

Ordinary
incomeIncrease in operating
income due to anincrease in the numberof children accepted

2Q FY3/19

2Q FY3/20(Unit: million yen/ Rounded down to the nearest million yen. )Copyright©JP-HOLDINGS, INC. All Rights Reserved.

20

2Q FY3/20 Profit and Loss Statement
2Q FY3/19

2Q FY3/20

Component
Ratio
(%)

Amount(Million Yen)

Amount(Million Yen)

Year on Year Comparison

Component
Ratio
(%)

Amount(Million Yen)

Component
Ratio
(%)

Net sales

14,278100.0

15,517

100.0

1,239

8.7

Cost of sales

12,72089.1

13,668

88.1

947

7.5

Gross profit

1,557

10.9

1,849

11.9

291

18.7

SG & A expenses

1,389

9.7

1,353

8.7

- 36

- 2.6

Operating income

168

1.2

496

3.2

327

194.9

Non-operating income

296

2.1

291

1.9

-4

- 1.6

Non-operating expenses

65

0.5

43

0.3

- 22

- 33.6

Ordinary income

399

2.8

744

4.8

345

86.4

Net income attributable toowners of parent

235

1.7

516

3.3

280

118.9

(Unit: million yen/ Rounded down to the nearest million yen. )Copyright©JP-HOLDINGS, INC. All Rights Reserved.

21

Progress of Business Forecasts for FY3/20
OperatingincomeNet sales(Million yen)
40,000Ordinary
incomeNet income
attributable toowners of parent(Million yen)
2,500

32,000

2,300

1,811
Results 15,517
Progress rate 48.5%

1,212

20,000Results 744
Progress rate 32.3%

1,000

Results 516
Progress rate 42.6%

Results 496
Progress rate 27.4%

Full-year
business
forecasts

FY3/20 1H
results

Full-year
business
forecasts

FY3/20 1H
results

Full-year
business
forecasts

FY3/20 1H
results

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

Full-year
business
forecasts

FY3/20 1H
results

22

FY3/20 Forecast
FY3/19Actual

FY3/20
Forecast

Year on Year
Comparison (%)

Change29,29832,0002,701

9.2

Operating income (million yen)

1,531

1,811

279

18.3

Ordinary income (million yen)

1,920

2,300

380

19.8

Net income attributable to owners of parent(million yen)

1,071

1,212

141

13.2

Net income per share (yen)

12.44

14.08

1.64

－

Dividends (yen)

3.70

3.90

0.20

－

Dividend payout ratio (%)

29.7

27.7

Expected opening of nursery school (school)

17

12

-5

－

Expected consignment of school clubs andchildren’s houses (facility)

4

5

1

－

Net sales (million yen)

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

－

－

23

2Q FY3/20 Financial Condition
Steady progress in repaying borrowings (short-term and long-term) and securing
cash and deposits
Liabilities, Net Assets,
Shareholders Equity Ratio

Financial condition
The figures in parentheses at the end of September 2019differ from those at the end of March 2019

Liabilities

Liabilities
AssetsNet Assets

Equity Ratio (%)

19,304 million yen

16,588 million yen

25,822 million yen(-2,715 million yen)

16,588 million yen
35.8

31.7

(-2,433 million yen)

Net assets
9,233 million yen

8,950 million yen

9,233 million yen

End-FY3/19

2Q FY3/20(+2821,000,000 yen)

End of Mar. 2019

End of Sep. 2019

Current assets

10,458

9,511

Fixed assets

17,796

16,310Total assets

28,25525,822Current
liabilities

7,880

5,273

Fixed liabilities

11,424

11,315

Total liabilities

19,304

16,588

Total net assets

8,950

9,233

Million yen

Cash and deposits
Accounts receivable
Construction in progress
Long-term loans receivable- 601 million yen- 81 million yen-1,389 million yen-108 million yen

Short-term borrowings
Current portion of long-term debt
Income taxes payable
Long-term debt

-1,500 million yen-513 million yen-227 million yen-161 million yen

Retained earnings
Treasury stock

190 million yen- 81 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.)

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

2Q FY3/20 Balance Sheet(Million yen)

End-FY3/19(Mar. 31, 2019)

2Q FY3/20

Change10,458

9,511

-946

Cash and deposits

6,816

6,214

-601

Accounts receivable - other

2,491

2,410

-81

17,796

16,310-1,486

Total tangible fixed assets

9,897

8,537

-1,360Total intangible fixed assets

342

326

-16

7,555

7,446

-109

28,25525,822-2,433

7,880

5,273

-2,606(Current portion of long-term loans
payable)

2,166

1,652

-513

(Accounts payable)

1,570

1,186

-384

11,424

11,315-108

10,454

10,292-161

Total liabilities

19,304

16,588-2,715

Total net assets

8,950

9,233

282

28,25525,822-2,433

Total current assets

Total fixed assets

Total Investments and other assets
Total assets

Total Current liabilities

Total fixed liabilities
Long-term loans payable

Total liabilities and net assets(Rounded down to the nearest million yen)
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

25

Status of New Openings as of the end of September 2019
FY 3/19 New Openings
Nursery Schools ：17： 4
School Clubs
Total ：21
*Nakano-Ehara Kids’ Club, Nakano Municipal Saginomiya
School Club, Nakano Municipal Yamato School Club andKita Municipal Akabanenishi 5-chome Children’s House
closed on the last day of March 2018.

Tokyo:
7 licensed nursery schools
・Koto-ku Minamisuna No.4 Nursery School・Asc Kanamecho Nursery School・Asc Toneri Nursery School・Asc Higashikasai Nursery School・Asc Fuchuhonmachi Nursery School・Asc Minamikugahara Nursery School・Asc Yakuoji Nursery School

Kanagawa:

Okinawa:
2 company-led nurseries

3 licensed nursery schools
・Asc Kugenumakita Nursery School・Asc Minowa Nursery School
・GENKIDS Shinkoyasu Nursery School・ Asc Akebonokaiho Nursery School・ Asc Noborikawa Nursery School

2 small-scale nursery schools
Shiga:
1 licensed nursery school

Tokyo:

・Asc Wani Nursery School・Asc Toyotama 1-chome Nursery School A・Asc Toyotama 1-chome Nursery School B

4 school clubs
・Kojimachi Kids’ Club・Taisho Primary School After School Club
・Chofu Municipal Chowa Primary School,
School Club・Wakuwaku Takinogawa Momiji
School Club

Osaka:
1 licensed nursery school

Chiba:

・Asc Soneminami Nursery School

1 licensed nursery school・Asc Otakanomori Nursery School

Copyright©JP-HOLDINGS,INC All Rights Reserved.

26

No. of facilities Operated as of the End of September 2019/
No. of Facilities Operated by Region

Operate 297 facilities as of the end of September 2019

Hokkaido

TohokuLicensed nurseryschools: 3

Licensed nurseryschools: 11

Kanto
Kinki
Licensed nurseryschools: 8

Kyushu・Okinawa
Licensed
nursery schools: 5
Company-led
nurseries: 2

Chubu

Lic. nursery schools: 136
Small-scale nurseryschools: 2
Non-lic. nursery schools:
24
School clubs: 69
Children’s houses: 5
Private school clubs: 5

VietnaKindergarten:1

Licensed
nursery schools: 9
School clubs: 3
Children’s houses: 6

Nursery schools 209, School clubs 72, Children’s houses 11
Private school club 4, Kindergarten (Overseas Facility)1* Withdrawal from Hoka GO→Club Onarimon and Koto Kids Club Ichikame upon contract expiration on the last day of March 2019.
* Private school club AEL Yushima closed on the last day of March 2019.
* Asc Ikegami Nursery School (Tokyo licensed nursery school) became a licensed nursery school, and Asc Toyotama 1-chome Nursery School A, B
(small-scale nursery schools) were consolidated into a licensed nursery school on April 1, 2019.
* Kawasaki Miyamaedaira Nursery School (public-private management) transitioned to private management, operated as Miyamaedaira Nursery School.

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

27

Changes in the Number of Facilities Operated and the Number of Children
Accepted to Nursery Schools
FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

8

10

11

14

16

14

10

10

11

12

12

28

43

61

71

85

102

118

136

148

160

171

0
26
0

0
26
0

0
26
0

0
26
0

0
26
0

0
26
0

0
23
0

0
21
0

2
21
2

20

Company-led Nurseries

0240Non-licensed Municipality
Authorized

5

4

4

4

4

4

1

0

0

0

0

Non-licensed Othernon-licensed

0

0

0

0

0

0

4

3

3

3

4

Joint Establishment with
Amusement Facilities

1

0

0

0

0

0

0

0

0

0

0

26
6
0

37
9
0

39
7
0

40
8
0

43
8
0

46
8
0

55
10
0

63
12
4

0

0

0

0

0

0

0

72
11
5
1

72

0

71
12
5
1

98

129

148

163

182

200

224

251

272

289

297

Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)
Small-scale Nursery Schools
Tokyo Licensed Schools

School Clubs
Children's Houses
Private School Clubs
Overseas Facility

Total

FY3/19Sep.2019

0
2

11
4
1

*We reviewed the count by management structure in the 2Q of FY3/16 and changed three licensed schools (private-public management) to other non-licensed nursery schools

Number of facilities
Licensed Nursery Schools(Public-private management)
Licensed Nursery Schools(Private management)
Small-scale Nursery Schools

TREND OF NURSERIES AND CHILDREN Number of Children

400

20000

14,05814,35015,249

Tokyo Licensed Schools
Company-led Nurseries

200

10000

Non-licensed Municipality Authorized

Non-licensed Othernon-licensed
Overseas FacilityChildren in Nurseries

00
FY 3/10FY 3/11

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

FY 3/18

FY 3/19

Sep.201928

FY3/20 Management Strategy
2Q Progress Report

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

29

FY3/20 Management Strategy
JPHD will establish a management base geared to achieving the Long-term Management Vision and theMedium-term Management Plan, and develop new businesses.

Increasing the number of children
admitted

１

Secure nursery school teachers and otherprofessional talent

２

Curb employee resignations

Strengthening management andpromotion frameworks

３

Administer nursery schools by geographic
region (introduce regional block framework)

Restructure organization andawareness raising

４

Implement team building

５

Develop various forms of content
coordinated with the consulting service
business and perform test marketing

Opening of new facilities andconsignment
Increase rates of capacity utilization
at existing facilities

Creating new businesses
Develop new businesses andstrengthen external sales

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

30

FY3/20 Measure (1) Recruitment of Nursery School Teachers
Recruitment of nursery school teachers for sustainable growth andsolving the problem of children on waiting lists【Compensation and benefits for nursery school teachers】
・The Company has improved salary for teachers on its own along with improvements made by thenational and local governments. The average annual income for nursery school teachers is ¥3,579
thousand nationwide and ¥4,007 thousand at JP-HOLDINGS (increase of ¥428 thousand).
・Examining problems and issues at all facilities and studying ways to improve the workplace environment
and personnel systems【Recruiting】
・Hiring more people in local areas = Seven locations with dormitories costing ¥10,000/month・Redesigned website with job application section
・Expanded program for applicants introduced by employees⇒ Employees receive payments if the applicants are hired
・Precisely structured recruiting activities for specific areas and targets【Promoting Work Style Reform】
・Use of ICT to reduce the volume of work
・Support system allows teachers to concentrate on childcare
・Reexaminations of human resources system and working conditions
・Priority on solving childcare/classroom problems and creating an environment where teachers can dotheir jobs with confidence and comfort
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

31

【2Q】Nursery School Teachers Recruiting Plan
Increase contact/frequency for each targeted category of prospective applicantsas the whole group measure
Key whole groupmeasures
Confirm measures/Progress
reports

Target-specificapproaches

×Morecontact/frequency

×

Friendlyworkingenvironment

Directors

Human resource
development

New graduates

Social network
recruiting

Experienced
peoplefacebook
twitter
Instagram

Stimulating andrewarding training
Make good work
environment"hands-on policy"

Provide information

Company/Dept.
managers
PC×

Recruiting
seminars/fairs/school
visits in targeted areas

Potential applicants

D

A

Potential new
childcare teachers(people interested in childcare)

Prospective new
employees(people who want to work at
JP-HOLDINGS)

Upgrade recruiting
websiteMore information/Input
from employees
Create an environment
permitting direct access

Posting of job openings
on regional media
Employee applicant
introduction campaign

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

Use SNS to supply
information aboutchildcare facilities and
JP-HOLDINGS
Recruit people to work in
the company nationwide

32

Our Plan to Secure Nursery School Teachers Utilize national and municipal subsidy and continue to improve wages.
 From Nov 2017, additional measures were introduced ※Provided retroactively from Apr.
2017(1)Implemented salary increase by regions(Max 480 thousand ¥/y)(2)Newly invented salary by roles(Max 480 thousand ¥/y)(3)Salary increase for directors and chiefs of nurseries(300 thousand ¥/y)
 In FY03/2019, the company paid an annual salary of 4.00 M¥ (average
age:31.7) versus the national average of 3.57 M¥ (average age:36.8)(10,000 Yen)

420
410
400
390
380
370
360
350
340
330
320
310
300
290
280

AVERAGE ANNUAL SALARY OF NURSERY SCHOOLTEACHERS

National average

Our average

400.7

374.3
354.1

357.9

358.6
342.1

328.4

332.4
324.9

324.2

331.4

323.9

323.3

326.8

2015年
2015

2016年
2016

316.7

322.5
314.6

310.8

2010年
2010

2011年
2011

315.0

300.9

309.8

287.1

2008年
2008

2009年
2009

2012年
2012

2013年
2013

2014年
2014

2017年
2017

2018年
2018

※ As for national average, JPHD made numbers based on Ministry of Health, Labour and Welfare”Basic Survey on Wage Structure”「 Contractual cash earnings as of each June 」×12＋「 Annual special cash earnings of each previous year 」※ JPHD’s average annual salary is based on full year base.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

33

【Supplementary Material】Recruitment of Nursery School Teachers
FY3/16

Nursery School
Teacher

Non qualified

FY3/17

FY3/18

FY3/20Joined on
Apr.1

FY3/192019年
期中入社(4月2日～9月末)

New
Graduates

178

197

247

276

248

－

Mid career
employment

219

241

327

325

145

74
【Plan : 130】

New
Graduates

－

23

32

46

26

－

* After joining JPHD non qualified graduates are expected and assisted to acquire nursery school teacher qualification. Started this recruitment style from FY2016.
* Includes seconded employees to associated companies.

Trend of Employee Numbers in childrearing Business
7000(*Include employees of school clubs stuffs, nutritionists, etc. other than nursery school teachers)
子育て支援事業 社員■ Part-time workers
子育て支援事業 アルバイト

6000■ Employees
5000
4000
3000
2000
1000
0
FY3/0８

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

FY3/17

FY3/18

FY3/19

Sep.
2019

34

FY3/20 Measure (2) “Curb resignations”
Basic
Concept

JP Holdings tackle with “ Work Style Reform” as entire company to become “ Most
Friendly Working Company” and promote the improvement of operations and working
environment.
Promote a focus on nursery school teachers with sights set on curbing staff
resignations and increasing number of children admitted

Directors make roundsof facilities to compile
list of issues
Advisory committee
established to address
issuesOperational improvement
and streamlining
Improvement of workplaceenvironments
Personnel education andtraining

Measures basedon voices offieldsTransmit and ShareInformation
Awareness
Raising

Efficient Operations
and Improvement ofWorking Environment
・Establish advisory committee
for efficient operations andimprove working environment
・Personal system and labor
management

・Utilize internal meetings and PR to fulfill
educational activities and sharing knowhow

Revise Personnel System
Business
ReformSystemReform andInfrastructure
Development

Management philosophy
and childcare policy
Personnel and labor
improvements

・Enable career up in system
・Revise warfare system
・Revise work system

Infrastructure
Development
・Equip IT system
・ICT etc.

Fulfill Friendly Working Environment
Improve Employees Motivation
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

35

FY3/20 No. of Children Accepted at Facilities (plan)
Increase the number of children accepted at existing facilities by securing nursery school
teachers, rather than sticking to the notion of new openings
As of Apr. 1, 2019
Number of Children in
As of Apr. 1, 2018
Plan toNursery Schools
Number of Children inincrease by
Nursery Schools
1,220 people

15,055

14,058New openings ofnursery schools
FY3/19SecureNursery
SchoolTeachers

End-Mar. 2020
【Plan】Number ofchildren at kindergarten

15,27817 ⇒ 12 FY3/20

Increase the number of children acceptedby securing nursery school teachers andassigning them to existing schools

Provide further high quality childraising services
Curb
Resignations

Work Style
ReformAdministrationand Support
System(Regional Block
Framework)

Team
Building(AwarenessRaising)

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

36

【2Q】Number of Children Accepted
Although the number of children accepted on April 1, 2019 was 956 slightly below the plan (-41 vs. plan)
Increase of 235 children during the period to 15,249 children at the end of September 2019

April 1, 2018
No. of children
accepted

No. of children
ReceivedPlan

14,0581,220
April 1, 2019
No. of children
accepted

Increasing number ofchildren

956(Plan:997/-41 Vs. plan)

End-Sep. 2019
No. of children
accepted

15,014（Plan:15,055）

Increase

235

End-Mar. 2020
No. of children
acceptedPlan

15,249Plan
29

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

Plan

15,27837

【2Q】Measure (3) Introducing Block System and its Effects
Nursery schools have been divided into five blocks in Japan to strengthen
operations and administrative functions for higher profitability.
Transmission of information

Centralization of supervisionand orders

Quickly identify and resolve
problems and issues(Management strategies,
successful business practices)

14

84

19

67

25

facil
ities

facil
ities

facil
ities

facil
ities

facil
ities

Block manager/Assistant
block manager/Support staff

Block manager/Assistant
block manager/Support staff

Block manager/Assistant
block manager/Support staff

Block manager/Assistant
block manager/Support staff

Block manager/Assistant
block manager/Support staff

Tokyo Block

Chiba/Saitama Block

Kanagawa BlockWest Japan Block

Hokkaido/Tohoku Block

Head office receives all information and monitors operations

Profit management of
individual facilities

Proper allocation of
personnel

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

Proper businessenvironment(Identify problems ⇒ Improvements and reforms)

38

FY3/20 Measure (4) “ Team building”
With its sights set on attaining sustainable growth, JPHD will improve its results throughorganizational innovation brought about through team building that involves combining
mutual opinions and ideas, and gaining first-hand experience.

Team building
Top down

Innovation

Approx. 6,000
employees take partin management

Fully exercisingabilities throughcapacity to think and
act

Team

Shared goals/objectives and incentives

Cooperation and communication
Organizational contributions and a learningoriented organization
Initiatives to actively address problems

Team awards

Bottom up

Expansion oftraining system

Team

Problem resolution & improvement / achievement of
earnings forecasts* The term “team building” refers to initiatives where those involved aim to unite as a team while each member
independently draws on his or her capabilities and diversity for the purpose of achieving the team’s goals and objectives.
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

39

【2Q】Team Building Activities
Use team building to create a corporate culturethat encourages cooperation
Use training and other actions to alter
thinking and foster a positive culture

Effects of team building

JP Awards 2019
・Awards are for solutions to problems at thehead office, nursery schools, school clubs andindividual departments and childcare facilities
・An annual event is held for presentations ofsolutions・Awards are used as ideas to make
improvements

Bettercommunication

Highermotivation

Innovation
JP Academy
・The academy holds events on a regular basis
where prominent individuals in a variety offields give presentations and other educational
activities take place
・Increases the motivation and ability to learn
・Participants acquire a broad range ofknowledge

Improve/refo
rm businessprocesses

Create new
businesses

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

Improve/reform
workplaceenvironment40

FY3/20 Measure (5) “Develop and promote new business”
JPHD will promote external sales utilizing the Group’s know-how and will develop new businesses.
Mutualcooperation

Existing
business

Consulting Service

MutualFurther expanding and strengthening consulting services for new openings and cooperation(Sep.2019: Ongoing 7 companies, New 5 companies, Total 12 companies)

operations of childrearing facilities

Since previous
fiscal year

Since previous
fiscal year
New
Sales of fixtures for opening
businesschildrearing facilities• Packaged fixtures for opening schools soldto companies planning company-led
nursery businesses (products mirroring
input of JPHD’s nursery school teachers)• As necessary, approach taken that involves
simultaneously providing support for
opening schools and other services

Newbusiness

Sales of proprietary programs(English, Gymnastics andeurhythmics)

Future business development

Newbusiness

・Sell our original packaged products
combining "English," "exercise" and"eurythmics" programs to nursery schools
outside the Group (combination of English
and exercise)・ Develop new programs such as
programming using English

Strengthen framework of externalsales linked to consulting

Develop and promote new
businesses① Develop new business utilizing
know-how② Build membership businesstargeting nursery children③ Create new businesses incooperation with education-relatedcompanies, etc.

Create new business development
Newbusiness

New businesses development initiatives
utilizing in-house resources• Promote development from various angles including administration pertaining to safety andsecurity, planning that particularly draws on aspects of facilities, and planning development of
products through experience gained in providing child-rearing support at respective sites ofoperation.

Development and external sales
involving new business in therealm of education and childraising

Educationrelatedcompanies

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

Different
industries

Nurseryrelatedcompanies

41

Medium-term Management Plan: Promote New Businesses
Aim ofMembership
Services

With keywords “Discovery”⇒”Learn”⇒”Use”, we provide various hands
on programs to prompt healthy growth of children, develop every single
child’s personality, exploit his/her ability

Examples of program
Planning of Hands on Tour which isDifferent from Ordinary Camps and Tourby Focusing on “Discovery” “Learn”“Create” etc.

Extraordinary
Experience
Programs【Progress Status】

EnterprisePartnership・ Creation of member
persona・ Consider of service ideas
・ Promote strategic allianceEnterprisePartnership
Examples of program

Examples of program

Provide Customized
Lessons of English,
Gymnastics,
Eurhythmics etc.

Ordinary
Experience
Programs

Membership
ServiceEnterprisePartnership

ProvideProducts
andServices

Support Purchasingof Necessities andProvide Services
depending on age etc.

※Enlarge services in series

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

42

ESG Initiatives
ESG initiatives to achieve sustainable growth and improved
enterprise value
Parents
ChildrenEmployees

The highest quality child-raising
services company in Japan
Sustainable growth/confidence

Shareholders

Business
partners

E

S

G

Environment

SocialGovernance・Environmental pollution
・Global warming, etc.

・Improvements in working
environment
・Contribution to local societies, etc.

・Fair and transparent governancesystem・Internal control• Equipment for environmentally soundfacilities- LED lighting- Yukarela floor-wide radiant air coolingand heating system- Ecocarat material that reduces harmful
substances- Solaton ceiling materials with Eco Markcertification

・Work Style Reforms- Improvement in addressing issues affecting theworkplace environment upon establishing anadvisory committee- Improvement in salaries/benefits of on-site
employees• Helping facilitate women’s participation insociety in terms of addressing the issue ofchildcare facility waiting lists by opening
childcare facilities in respective regions• Three Outside Directors and four Outside
Audit and Supervisory Board Members
acting as independent officers• Harassment eradication declaration• Development of risk management
practices
・Compliance Committee
・Internal whistle-blowing system
・Compliance training

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

43

Appendix

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

44

Company Overview

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

45

Profile
Company Name

JP-HOLDINGS, INC.

Listed Market

First Section of the Tokyo Stock Exchange (Securities code: 2749)

Location
Date of
Establishment
CapitalHead Office: 17F Chikusa New Tower Bldg., 3-15-31 Aoi, Higashi-ku, Nagoya-shi Aichi
Tokyo Office: 5F Shinagawa Season Terrace, 1-2-70 Konan, Minato-ku Tokyo
March 31, 1993
1,603.955 million yen

Representative

Koichiro Furukawa, President and Representative Director

No. of Employees

Employees: 3,481 / Part-time workers: 2,520 *As of March.-end 2019Japan Nursery Service Inc. (Capital stock: 99 million yen / Wholly owned subsidiary)
J Kitchen Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
J Cast Inc. (Capital stock: 10.4 million yen / Wholly owned subsidiary)

Consolidated
Subsidiaries

J Planning Sale Inc. (Capital stock: 10 million yen / Wholly owned subsidiary)
Japan Nursery Institute for General Research Inc. (Capital stock: 10 million yen / Wholly owned
subsidiary)
Amenity Life Inc. (Capital stock: 70 million yen / Wholly owned subsidiary)
COHAS VIETNAM CO., LTD (Capital stock: 6,834,million VND / Wholly owned subsidiary）
Nursery Service (Japan Nursery Service, Amenity Life, and COHAS VIETNAM )Gymnastics, English and Eurhythmics Schools Contracting Service (J Cast)

Business Areas

Food Service (J Kitchen)
Distribution Service (J Planning Sale)
Researching , Training and Consulting Service (Japan Nursery Institute for General Research)

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

46

Corporate Philosophy
 Corporate Message
For the smiles of children…
Smiles of children: This is our pride that cannot be replaced. We always provide childcare
where children who will lead the future can develop generosity as well as words andemotions to express themselves in a safe environment.
We strive for continual self-improvement to be models to children. We also strive toconnect with children with passion and a sense of responsibility, and to acquire strong
ethical values and social conscience.

 Management Philosophy
1.Number one priority: Safety and security
2.Childcare that remains memorable forever to users
3.Provision of high-quality services needed by users
4.Creation of work-friendly environments
Copyright©JP-HOLDINGS, INC. All Rights Reserved.

47

Business Summary Operation of Childrearing Facilities (Public and Private)
Public Facilities = Subsidy from Gov’t and Municipalities
Licensed
Nursery School

Private Facilities= Subsidy from Gov’t
and Municipalities No

YesTokyo Licensed
Nursery School

School Club,Children's House

Municipality

Municipality

Private School Club

ParentMunicipality

ParentLicensed schools(Public-private management)

Licensed schools(Private management)

Revenue from User

Revenue from User

(Burden of Actual Cost)(Burden of Actual Cost)

Structureof SalesSubsidy（DesignatedManagement Fee）
※depends on municipality

Subsidy（Official Price）+（Addition by
Municipality）※depends on municipality

JP

Contract

ParentUsage FeeJP

ParentUsage FeeContract

Contract
Form

JP

JP

Revenue from User
Revenue from User
(Childcare Charge +Burden of Actual Cost)

Subsidy（Tokyo Met. Gov’t）+（Addition by
Municipality）(Burden of Actual Cost)

Subsidy（ DesignatedManagement Fee）
or
（Trustee Fee）

Revenue from
User
(Childcare Charge +Burden of Actual
Cost）※depends on municipality※depends on municipality

Copyright©JP-HOLDINGS,INC All Rights Reserved.

48

Comparison of Kindergartens, Nursery Schools and Licensed Children’s Schools
Kindergarten

Nursery School

Licensed Children’s School(Kindergarten/Nursery School
Cooperation type)Act on Child Education and Childcare Support (Defines the framework of cross-ministerial and unified payments in
the Cabinet Office)Section 3 of the School Education
Act(Under the jurisdiction of the
Ministry of Education, Culture,
Sports, Science and Technology)

Article 7 (1) of the Child Welfare Act(Under the jurisdiction of the Ministryof Health, Labour and Welfare)

Article 7 (1) of the Child Welfare
Act
Article 2 (7) of the Licensed
Children’s School Law(Under the jurisdiction of the
Ministry of Education, Culture,
Sports, Science and Technology &the Ministry of Health, Labour andWelfare)Type of Facility

SchoolChild welfare facility

School and child welfare facility

Target Children*

1st certification

2nd and 3rd certification

1st, 2nd and 3rd certification

Basis of Education
and Childcare
Content

Kindergarten Education Guidelines

Nursery School Childcare Guidelines

Licensed Children’s School
Education and Childcare Guidelines

Underlying
Laws/Regulations

Daily Education andChildcare Time

4 hours as standard

8 hours as standard

Hours depending on the children (8hours for children requiring
childcare and 4 hours for children
requiring education) as standard

Number of Education
and Childcare Days
in a Year

39 weeks or more

No stipulations

Depending on the regional
conditions*1st certification: Children of 3 years old or older requiring education / 2nd certification: Children of 3 years old or older requiring childcare / 3rd certification:
Children under 3 years old requiring childcare
Copyright©JP-HOLDINGS,INC All Rights Reserved.

49

Overview of School Clubs and Children’s Houses
School Clubs (Broad Definition)
After-school Children’s Health
Promotion Business

After-school Children’s Classroom
Promotion BusinessChildren’s Houses

Underlying
Laws/Regulations

Article 6-3 (2) of the Child Welfare Act(Under the jurisdiction of the Ministry of
Health, Labour and Welfare)

Implementation of After-school Children’s
Plan Promotion Business(Under the jurisdiction of the Ministry of
Education, Culture, Sports, Science andTechnology)

Article 40 of the Child Welfare Act(Under the jurisdiction of the
Ministry of Health, Labour andWelfare)Nature of the Facility

The aim is to provide a place forappropriate fun and lifestyles for children
enrolled in elementary school whoseparents are not at home after school due
to work and foster them healthily byusing a facility such as child welfare
facilities after school.

This aims to establish safe and secure activity
bases (locations) for children using spareclassrooms in schools after hours or on theweekends. These provide opportunities forlearning and a variety of experiences/exchange
activities for children on a regular andcontinuous basis with the participation of local
residents.

This aims to offer healthy fun tochildren in the community, promote
their health and nurture emotions.
(one of children’s recreational
facilities)

Target Children

Grades 1 to 3 in elementary school(However, it is also possible to target
children in special support elementary
schools and elementary school children ingrades 4 and above)

All children in the community (regardless ofwhether infants, children or students andregardless of whether their parents work ornot)

All children under the age of 18

Basis of Education andChildcare Content

After-school Children’s Health
Promotion Business Action Guidelines
After-school Children’s Club Guidelines

After-school Children’s Classroom Promotion
Business Action Guidelines

Children’s House Guidelines

Daily Education andChildcare Time

3 hours or more on average(However, this is 8 hours or more as a
general rule on Saturdays, school
holidays and long-term holiday periods)

Number of Education
and Childcare Days ina Year250 days or more as a general rule
(However, this can be 200 days or more
depending on the form of the user’s
needs)

4 hours or less on average(However, this is 8 hours or less as a generalrule on Saturdays, school holidays and longterm holiday periods)

Set in accordance with thesituation in the community (e.g. theage of the target children andconvenience of parents)

Less than 250 days as a general rule

Copyright©JP-HOLDINGS,INC All Rights Reserved.

50

Image of JP Holdings’ Group Structure
J CastJ Kitchen

Teacher

Nurseryschool teacher

EnglishGymnastics
Gymnastics
Eurhythmics
EnglishNutritionist
Lunch

Eurhythmics
Childcaregoods

J Planning Sale

Overseas
VietnamChildcare

Japan Nursery
Service

We will take full advantage
of group synergies –from facilities and equipment
to the quality improvementof staff

Researching, Training and Consulting Service
Training

Japan Nursery Institute forGeneral ResearchChildcare

Copyright©JP-HOLDINGS,INC All Rights Reserved.

51

Results Trends

Copyright©JP-HOLDINGS, INC. All Rights Reserved.

52

Consolidated Results (Highlights)
FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19
Net sales(million yen)
Operating income(million yen)
Ordinary income(million yen)
Net income
attributable to ownersof parent(million yen)

7,272

8,194

521

738

839

1,114

1,285

1,234

1,345

1,732

1,168

1,303

1,531

707

800

866

1,150

1,325

1,460

1,550

1,781

1,350

1,582

1,920

440

444

500

653

717

837

904

1,071

661

910

1,071

Net income per share
(Yen)

5.98

6.06

6.67

7.83

8.60

10.03

10.84

12.84

7.87

10.70

12.44

9,166 11,867 13,789 15,747 17,868 20,552 22,799

26,779 29,298* Net income per share is the amount that reflects the stock split.
(million yen)
35,000Ordinary
営業利益

Net sales
売上高

income(right axis)(left axis)

30,000(million yen)
2500

Operating income
経常利益(right axis)

2000

25,0001500

20,00015,0001000

10,000
500
5,000
0

0
2008年
FY3/083月期

2009年
FY3/093月期

2010年
FY/3/103月期

2011年
FY3/11
3月期

2012年
FY3/12
3月期

2013年
FY3/133月期

2014年
FY3/143月期

2015年
FY3/153月期

2016年
FY3/163月期

Copyright©JP-HOLDINGS,INC All Rights Reserved.

2017年
FY3/173月期

2018年
FY3/183月期

2019年
FY3/193月期

53Consolidated Results (Balance Sheet / Statement of Cash Flows)
FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19
Total assets(million yen)

4,275

5,763

9,432

9,808 10,876 13,521 18,882 21,126 24,002

25,761 28,255

Net assets(million yen)

1,546

1,903

3,559

3,977

4,452

5,034

5,606

6,279

6,854

7,756

8,950

Shareholders’ equity
ratio
(%)

36.1

32.9

37.7

40.5

40.9

37.2

29.7

29.7

28.5

30.1

31.7

FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19
Cash flows fromoperating activities(million yen)

672

378

Cash flows frominvesting activities(million yen)

- 363

Cash flows fromfinancing activities(million yen)
Year-end balance of
cash and cash
equivalents(million yen)

915

1,205

1,173

1,038

1,294

1,878

1,865

1,829

- 906 - 1,808- 821 - 1,268 - 3,638 - 3,959 - 2,449 - 3,305- 1,292

- 940

- 157

412

2,473

- 219

514

1,220

3,748

1,553

1,646

- 135

1,475

1,137

1,022

2,602

2,768

3,188

1,808

2,891

3,798

4,017

4,455

6,816

Copyright©JP-HOLDINGS,INC All Rights Reserved.

1,804

54

Dividends
The basic policy of our company is to continue paying a performance-linked dividend with a payout ratio of around
30% while maintaining the necessary internal reserves for future business development and to strengthen ourmanagement structure.

FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Amount ofdividend per
share
(yen)

1.90

Payout ratio
(%)

31.7

2.00

33.0

2.90

3.00

Commemor
ative
dividend:
0.50 yen

Commemor
ative
dividend:
0.50 yen

43.4

38.3

3.20

3.60

4.00

5.00

2.50

3.50

3.70

37.2

35.9

36.9

38.9

31.8

32.7

29.7

The amount of dividend per share reflects the stock split.

Copyright©JP-HOLDINGS,INC All Rights Reserved.

55

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 Communications & Investor Relations Div.
TEL: 03-6433-9515 e-mail : jphd_pr@jp-holdings.co.jp

Copyright©JP-HOLDINGS,INC All Rights Reserved.