Summary of Business Results for the Third Quarter Ended December 31, 2022
[Japan GAAP] (Consolidated)
February 10, 2023
Listed on the TSE Prime

Company
JP-HOLDINGS, INC.
Stock Code2749
URL: https://www.jp-holdings.co.jp
Representative
Tohru Sakai, President and Representative Director
Contact
Ryoji Tsutsumi, Director
Expected date of filing of annual securities report: February 10, 2023
Preparation of supplementary financial document: None
Results briefing: None

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

1. Consolidated business results for the nine months ended December 2022
(April 1, 2022 through December 31, 2022)(1) Consolidated results of operations(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen%
Nine months ended Dec. 2022
26,051
2.6
2,499
16.2
Nine months ended Dec. 2021
25,382
2.8
2,151
18.6
(Note) Comprehensive income
Nine months ended December 2022: 1,741 million yen (22.0%)
Nine months ended December 2021: 1,427 million yen (12.0%)
Net income
Diluted net income perper share
share
Yen
Yen
Nine months ended Dec. 2022
20.44－
Nine months ended Dec. 2021
16.07－

Net income attributable toowners of parent

Ordinary income
Million yen
2,522
2,170

%
16.2
18.5

Million yen
1,777
1,405

%
26.5
22.9

(2) Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Million yen
As of Dec. 31, 2022
34,244As of Mar. 31, 2022
34,274(Reference) Shareholders’ equity
As of December 31, 2022: 12,626 million yen
As of March 31, 2022: 11,975 million yen

Million yen
12,626
11,975

%
36.9
34.9

2. Dividends
End of 1Q

Annual dividend
End of 3Q
Yen
Yen
0.00
0.00
-

End of 2Q
Yen-

Year-end

Year ended Mar. 2022
Year ending Mar. 2023
Year ending Mar. 2023 (forecast)(Notes) Revisions to dividend forecast for the current quarter: None
Breakdown of year-end dividend for the fiscal year ending March 2023
Ordinary dividend: 5.00 yen, Commemorative dividend: 1.00 yen

Total

Yen
4.50

Yen
4.50

6.00

6.00

3．Forecast of consolidated business results for the fiscal year ending March 2023
(April 1, 2022 through March 31, 2023)(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen%
Year ending Mar. 2023
35,640
3.7
3,633
8.6
(Notes) Revisions to business forecast for the current quarter: None

Ordinary income
Million yen
3,711

%
10.5

Net income attributable toowners of parent

Million yen
2,566

%
12.6

Net income
per share
Yen

29.64

*Notes(1) Changes in significant subsidiaries during the period: None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: Yes: None: None: None(Note) For details, please refer to "(3) Notes on Quarterly Consolidated Financial Statements (Changes in accounting policies)" of"2. Quarterly Consolidated Financial Statements and Major Notes" on page 9 of the attached material.

(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of December 31, 2022
87,849,400 shares
As of March 31, 2022
87,849,400 shares②Treasury stock at the end of period
As of December 31, 2022
2,763,632 shares
As of March 31, 2022
380,707 shares③Average number of stock during period (quarterly cumulative period)
Nine months ended December 2022
86,974,968 shares
Nine months ended December 2021
87,468,693 shares*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or
auditing firms.
*Appropriate use of financial forecasts and other important matters∙ Forecasts regarding future performance in this material are based on information currently available to the Company and certain
assumptions that the company deems to be reasonable at the time this report was prepared. Actual results may differ significantly
from the forecasts due to various factors. For information regarding the assumptions that form the basis for the business results
forecasts and notes about using business forecasts, please refer to “1. Qualitative Information on Quarterly Financial Results (3)Consolidated Earnings Forecasts” (Page 4).

〇 Table of Contents of the Appendix

1. Qualitative Information on Quarterly Financial Results……………………………………………..… 2(1) Results of Operations…………………………………………………………………………………..2(2) Financial Position …………………………………………………………………………………… 4(3) Consolidated Earnings Forecasts…………………………………………………………………...… 4
2. Quarterly Consolidated Financial Statements and Major Notes………………………………………. 5(1) Quarterly Consolidated Balance Sheets……………………………………………………………… 5(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income………..…7(3) Notes on Quarterly Consolidated Financial Statements……………………………………………… 9(Notes on going concern assumption)…………………………………………………………….… 9(Notes if there is a significant change in the amount of shareholders' equity)…………………...… 9(Changes in accounting policies)…………………………………………………………………… 9(Significant subsequent events)……………………………………………………………………... 9-1-

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the third quarter under review, the Japanese economy showed signs of gradual recovery due to the relaxation of some
restrictions and the effects of various government policies. However, the outlook remains uncertain due to concerns of an
economic downturn caused by the re-spread of COVID-19, soaring global resource prices, tensions in international situations, andthe effects of the yen's depreciation, which remains at a high level.
Meanwhile, in the child-raising support business, conditions remained challenging due to the acceleration of the declining birthrate accompanying the sharp drop in the number of births, the continuing shortage of childcare workers, and a decline in thenumber of children on waiting lists because of people refraining from using childcare facilities due to COVID-19. The governmenthas been promoting various measures to improve the childcare environment, such as the development of childcare services basedon the "New Childcare Security Plan" and the further acceleration of the development of after-school children's clubs under the"New Comprehensive Plan for After-school Children" in order to eliminate the waiting list for children. In addition, the bill forestablishment of the “Children's Agency” was promulgated by the Cabinet. The government plans to establish the Agency on April
1, 2023 and is promoting to create a better environment for childcare. In such circumstances, the social role of the child-raising
support business will become increasingly important.
Under these situations, as measures against COVID-19, our group, in collaboration with local governments, has established ourown response standards and implemented thorough safety measures with giving top priority to ensuring the safety of children,
parents, business partners, and employees. At the same time, we also have been taking prompt measures.
Rather than prioritizing quantitative expansion through the opening of new facilities, we are required to transform ourselves into
"facilities that would continue to be selected by customers" by further improving the quality of our childcare support in response tochanges in the social environment and the needs of parents. In order to respond promptly to these changes in the environment, ourGroup has set more reliable management targets.
Our Group will continue to take advantage of changes in the social and business environment and maintain the management
policies formulated in the previous fiscal year with the key objectives of "improve profitability and efficiency," "improvesoundness," and "improve growth potential." We will effectively allocate and invest management resources to build a solidmanagement foundation and aim for sustainable growth through the creation of new businesses.
Specifically, with Digital Transformation (DX) as the pillar of reform to respond to changes in the social environment, in terms of"improve profitability and efficiency," we are promoting a dominant strategy in collaboration with nursery schools, school clubs,
and children's houses with these initiatives: improve early learning to increase the number of children accepted at existing childraising support facilities as our existing business, develop and introduce new content, develop new nursery schools specializing in
English education, improve profitability by further optimizing staffing, and establish an integrated child-rearing support systemthat captures the infant, early childhood, and children's period. As a result, we are actively working to acquire new contracts todouble the current number of school clubs and children's houses to 200 facilities.
With regard to “improve soundness”, we will expand our human resource education and training systems as the key to childcare
support is "human resources”, and will promote operational sophistication through streamlined operations. In addition, we willfurther improve the quality of our childcare support and promote the creation of “facilities that would continue to be selected bycustomers” by disseminating and implementing both internally and externally the Group's Management Philosophy, Corporate
Message, Operational Philosophy, Childcare and Nurturing Philosophy, and Childcare and Nurturing Policy, which were renewed
last year. Furthermore, we are working to eliminate wasteful operations by reviewing various operations and to improve
operational efficiency by promoting systematization.
With regard to "improve growth potential," we are actively promoting the development of new businesses based on the know-how
and marketing method cultivated through the operation of the child-raising support business, the second pillar of our business.
As a new business, we have started operation of a child-raising support platform "codomel," to provide various services andproducts tailored to the child's each development stage and for external sales to other companies in the same industry. As a firststep, we are expanding the number of registered members by offering matching services mainly for childrearing generations. With
this service, users can individually sell and purchase baby care goods, apparel, and other goods (reused goods) on the web. In the
future, we intend to expand our various services and businesses not only domestically but also globally, including the provision ofservices in collaboration with various companies, introduction and dispatch of professional personnel, and on-demand streaming ofprofessional training programs.
In addition, we will develop a food business that addresses the "dinner preparation" needs of parents and will provide a variety ofservices at each facility to solve parents' problems, such as providing shared meals for parents and children, and preparing andproviding diapers and other supplies necessary for each child's age.
Our group has also strengthened and promoted support for children with developmental concerns, such as through support
programs for visiting childcare facilities, etc. Based on the expertise gained through our childcare support, we will provide suchsupport to more children and their parents, such as expanding the support with high levels of expertise for children with potential
for developmental disabilities and establishing a new English-specialized "bilingual nursery school" with full-time native Englishspeaking teachers.
As for the new facility openings, the Group has opened a total of 14 facilities during the third quarter of the fiscal year ending
March 2023 according to the plan, including 2 nursery schools (2 in Tokyo) and 12 school clubs and children's houses (12 in
Tokyo).

-2-

(Nursery School)
Asc Musashi-Koganei Minamiguchi Nursery School(Apr. 1, 2022)

Mitaka City Flexible Childcare Center Hinata(Apr. 1, 2022)(School club/Children's house)
Takenotsuka School Club

(Apr. 1, 2022)

Takaban Elementary School Club

(Apr. 1, 2022)

Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 1(Apr. 1, 2022)

Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 2(Apr. 1, 2022)

Wakuwaku Nishi-Ukima Hiroba/Nishi-Ukima Club No. 3(Apr. 1, 2022)

Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 1(Apr. 1, 2022)

Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 2(Apr. 1, 2022)

Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 3(Apr. 1, 2022)

Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 1(Apr. 1, 2022)

Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 2(Apr. 1, 2022)

Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 3(Apr. 1, 2022)

Bunkyo-ku Meidai Temporary Chidcare Room

(Jun. 1, 2022)*1: “Mitaka City Part-time Childcare Center Hinata” began operation on May 1, 2022.
*2: As of March 31, 2022, the Company closed Tokyo Licensed Nursery Schools named Asc Itabashi-honcho Nursery School, Asc Shiodome
Nursery School, Asc Takadanobaba Nursery School, Asc Yanokuchi Nursery School. In addition, due to the expiration of the contract, theCompany withdrew from school clubs named Rinsen Elementary School After School Club, Hiroo Elementary School After School Club,
Sarugaku Elementary School After School Club, Nagayato Elementary School After School Club, and a children's house named FukuroChildren's House on March 31, 2022.

As a result, the Group came to have 209 nursery schools, 89 school clubs, 10 children's houses, making a total of 308 facilities forsupporting child-raising as of December 31, 2022.
As a result, the Group’s consolidated net sales were 26,051 million yen (up 2.6% year on year), operating income was 2,499
million yen (up 16.2% year on year), ordinary income was 2,522 million yen (up 16.2% year on year), and net income attributableto owners of parent was 1,777 million yen (up 26.5% year on year).
The major factors are as follows:
Net sales increased 2.6% year on year, reflecting the success of efforts to create "facilities that would continue to be selected bycustomers" such as opening new facilities, commissioning new facilities, conducting online facility tours ahead of othercompanies, implementing online programs such as English, gymnastics, eurhythmics and dance, and introducing early childhood
learning programs, despite the fact that each facility became partially closed since the number of COVID-19 cases continued torise and fall.
In terms of operating income and ordinary income, net sales increased due to factors such as the opening of new facilities and anincrease in the number of children accepted during the period as a result of the various measures described above. In addition, ourGroup worked to improve profitability and reduce costs at each facility by reviewing the ordering system to curb the surge in theprices of various purchased products, despite an increase in operating efficiency through the reallocation of personnel at eachfacility and an increase in utility expenses. Operating income increased by 16.2% year on year and ordinary income increased by
16.2% year on year. This was mainly due to an increase in provision for bonuses resulting from a change in the period covered bybonuses following the introduction of a new personnel system, as well as an increase in expenses resulting from special factors
associated with the introduction of a new system in the previous fiscal year.
Net income attributable to owners of parent increased by 26.5% year on year. In addition to the increase in operating income andordinary income mentioned above, the Company recorded extraordinary income of 239 million yen from the sale of fixed assets(land and buildings) of 2 of 7 nursery schools, in which we acquired land and building as a foothold for our child-raising support
business in the past, in the third quarter of the fiscal year ending March 2023, as we considered off-balance sheet financing forthese facilities to avoid the risks of holding such assets, and also recorded a total of 982 million yen for corporate tax, inhabitanttax, enterprise tax, and income taxes-deferred.

-3-(2) Financial Position
As for the financial position at the end of the third quarter of the current fiscal year, the total assets amounted to 34,244 million yen(down 30 million yen from the end of the previous fiscal year).
Current assets totaled 21,681 million yen (up 750 million yen), mainly reflecting increases of 503 million yen in cash and deposits,
215 million yen in others, and 46 million yen in accounts receivable, while there was a decrease of 27 million yen in inventories.
Fixed assets totaled 12,563 million yen (down 780 million yen). This was mainly due to an increase of 177 million yen in tools,
furniture and fixtures, while there were decreases of 256 million yen in buildings and structures, 174 million yen in land, 148million yen in long-term loans receivable, 137 million yen in construction in progress, and 80 million yen in guarantee deposits.
Total liabilities amounted to 21,617 million yen (down 681 million yen).
Current liabilities totaled 8,120 million yen (up 228 million yen), mainly reflecting increases of 473 million yen in others, 315
million yen in current portion of long-term loans payable and 119 million yen in accounts payable, while there were decreases of
453 million yen in provision for bonuses and 177 million yen in income taxes payable.
Fixed liabilities totaled 13,496 million yen (down 910 million yen). This was mainly due to a decrease of 960 million yen in longterm loans payable.
Total net assets as of the end of the third quarter of the current fiscal year totaled 12,626 million yen (up 651 million yen), mainlyreflecting increases of 1,384 million yen in retained earnings and 695 million yen in treasury stock, while there was a decrease of
56 million yen in valuation difference on available-for-sale securities.

(3) Consolidated Earnings Forecasts
For the full-year business forecasts announced on May 12, 2022, the Company revised the forecasts upward based on the results
for the second quarter of the fiscal year ending March 2023, as follows. For details, please refer to the "Notice of Upward
Revisions to Full-year Business Forecasts" dated November 10, 2022.
In our consolidated business forecasts for the fiscal year ending March 2023, we expect sales to be at the initial forecast level,
despite a decline in the number of children accepted at the beginning of the fiscal year due to the accelerated decline in thebirthrate and the impact of COVID-19. This is due to the promotion of following various initiatives to create "facilities that would
continue to be selected by customers": implementing online facility tours and online learning programs such as English,
gymnastics, eurhythmics, and dance, introducing a new early learning program, developing swimming classes in cooperation withneighboring facilities.
Operating income and ordinary income are expected to increase by 2.1% and by 3.7% compared to the initial forecasts due toefforts to control expenses and maximize subsidies received through efficient management by the reallocation of personnel at eachfacility and a review of the ordering system and operation to curb price hikes.
Net income attributable to owners of parent is expected to increase by 10.4% compared to the initial forecast. This is due to factors
such as the establishment of the above-mentioned efficient management system and the recording of an extraordinary income fromthe sale of fixed assets (land and buildings) of 1 of 7 nursery schools, in which we acquired land and building as a foothold for ourchild-raising support business in the past, in the second quarter of the fiscal year ending March 2023, as we promote off-balance
sheet financing for these facilities to avoid the risks of holding such assets.
These efforts are implemented to improve profitability and expand the number of children we accept not only for the current fiscal
year but also for the next fiscal year. These initiatives have been successful in creating “facilities that would continue to be selectedby customers” in each region, as we could increase the number of visitors to our facility tours. We believe that they will have asignificant impact on the expansion of our business in the next fiscal year and beyond.
In addition, we will also develop and operate new businesses in collaboration with existing businesses to achieve sustainablegrowth, including a food business that captures the needs of parents, a service that provides the necessary equipment for nurseryschools, the development of new facilities specializing in English education, and the expansion of the service functions of the"codomel", a child-raising support platform.
Actual results may differ from forecasts due to changes in business conditions and other factors in the future. If there are anychanges, the Company will disclose them properly.
Since the timing of the containment of COVID-19 remains uncertain, there is a possibility that it will have a major impact on
consolidated results depending on the spread and containment of the infection and other factors in the future.

-4-2. [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Thousand yen)Previous Fiscal Year
(March 31, 2022)

Current Third Quarter(December 31, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade17,296,668
68,65017,799,934
81,190Inventories
Accounts receivable - other

63,9002,708,806

36,6092,754,808

794,924-1,766

1,010,039-966

20,931,185

21,681,617

12,326,804

12,234,157

Accumulated depreciation and impairment-7,450,666-7,614,442

Buildings and structures, net

4,876,138

4,619,715

Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

203

203

Accumulated depreciation

-121

-143

Machinery, equipment and vehicles, net

82

60

1,106,051

1,347,429

Accumulated depreciation and impairment-820,246-884,088

Tools, furniture and fixtures, net

Tools, furniture and fixtures

285,804

463,340

Land
Construction in progress

435,909
137,030

261,846-

Total tangible fixed assets

5,734,966

5,344,963

136,736

113,947

Intangible assets
Goodwill
Other

37,90442,015

Total intangible assets

174,640

155,962

Investment securities
Long-term loans receivable

453,084
2,989,672

404,989
2,841,657

Guarantee deposits
Deferred tax assets

1,903,902
1,579,652

1,823,839
1,507,597

Other
Allowance for doubtful accounts

513,833-6,123

488,783-4,757

Total investments and other assets

7,434,021

7,062,110

13,343,629

12,563,036

34,274,814

34,244,654

Investments and other assets

Total fixed assets
Total assets-5-

(Thousand yen)Previous Fiscal Year
(March 31, 2022)

Current Third Quarter(December 31, 2022)

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

165,552
3,113,291

168,5023,429,074

Accounts payable – other
Income taxes payable

1,561,978641,517

1,681,666
463,674

Accrued consumption taxes
Reserve for bonuses

143,892
906,420

117,879
452,880

Asset retirement obligation
Other

49,652
1,309,498

23,635
1,783,405

Total current liabilities

7,891,803

8,120,718

Long-term debt
Retirement benefit liability

12,816,466
940,313

11,856,306
1,015,040

Asset retirement obligation
Other

647,1273,650

625,630-

14,407,557

13,496,976

22,299,361

21,617,695

Shareholders’ equity
Capital1,603,955

1,603,955

Capital surplus
Retained earnings

1,449,544
9,117,409

1,449,053
10,501,692

Fixed liabilities

Total fixed liabilities
Total liabilities
Net assets

Treasury stock-107,515-803,152

12,063,393

12,751,548

Accumulated other comprehensive income
Valuation difference on available-for- salesecurities
Deferred gains or losses on ledges-49,918-106,240-2,5334,288

Remeasurements of defined benefit plans-35,488-22,637

Total shareholders’ equity

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6--87,940-124,589

11,975,452

12,626,958

34,274,814

34,244,654

(2) [Quarterly Consolidated Statements of Income and Statements of Comprehensive Income][Quarterly Consolidated Statement of Income][Third Quarter of FY3/23]

Net sales
Cost of sales

Previous Third Quarter(Apr. 1, 2021
- December 31, 2021)
25,382,088
20,972,430(Thousand yen)
Current Third Quarter(Apr. 1, 2022
- December 31, 2022)
26,051,906
21,488,226

Gross profit

4,409,657

4,563,680

Selling, general and administrative expenses

2,258,190

2,064,225

Operating income

2,151,467

2,499,455

58,08359,278Non-operating income
Interest income
Other

15,09325,011

Total non-operating income

73,176

84,290Interest expenses
Other

50,391
3,716

52,112
9,234

Total non-operating expenses

54,107

61,3472,170,536

2,522,398

Gain on sales of fixed assets-

239,330Extraordinary income-

239,330

42

1,021

3,052

-

Non-operating expenses

Ordinary income
Extraordinary income

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

3,095

1,021

Income before income taxes and others

Total extraordinary loss

2,167,441

2,760,707

Corporate, inhabitant and enterprise taxes
Income taxes-deferred

593,413
168,438

895,673
87,141

Total income tax

761,852

982,814

Net income

1,405,588

1,777,892

Net income attributable to owners of parent

1,405,588

1,777,892-7-

[Quarterly Consolidated Statement of Comprehensive Income][Third Quarter of FY3/23]
Previous Third Quarter(Apr. 1, 2021
- December 31, 2021)
1,405,588(Thousand yen)
Current Third Quarter(Apr. 1, 2022
- December 31, 2022)
1,777,892

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

4,161
2,176

-56,321
6,821

Remeasurements of defined benefit plans

15,597

12,850Net income
Other comprehensive income

21,935-36,648

Comprehensive income

Total other comprehensive income

1,427,524

1,741,243

BreakdownComprehensive income attributable to owners of parent

1,427,524

1,741,243-8-

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)
Current Third Quarter (April 1, 2022 – December 31, 2022)
None applicable.
(Notes if there is a significant change in the amount of shareholders' equity)
Current Third Quarter (April 1, 2022 – December 31, 2022)
In accordance with a resolution approved at the Board of Directors meeting held on October 6, 2022, we purchased
2,397,200 shares of treasury stock. As a result, the amount of treasury stock increased by 699,668 thousand yen in the ninemonths of the current fiscal year.
(Changes in accounting policies)(Application of guidelines for the application of accounting standard for fair value measurement, etc.)
Guidelines for the Application of the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 31, June 17,
2021, hereinafter referred to as the "Guidelines for the Application of the Fair Value Measurement Accounting Standard") andother standards have been applied from the beginning of the first quarter of the current fiscal year. In accordance with thetransitional treatment stipulated in Article 27-2 of the Guidelines for the Application of the Fair Value Measurement
Accounting Standard, the new accounting policy stipulated by the Guidelines for the Application of the Fair Value
Measurement Accounting Standard will be applied in the future. The application of this standard has no effect on the quarterly
consolidated financial statement.
(Significant subsequent events)(Borrowing of large amounts of funds)
Our Group borrows funds to stabilize cash on hand and maintain its liquidity.
(1) Lenders: Multiple financial institutions(2) Total borrowings: 1,500,000 thousand yen(3) Loan terms: Fixed interest rate(4) Date of borrowing: January 2023
(5) Borrowing period: 5 years(6) Collateral: Unsecured, guaranteed by subsidiary(Transfer of treasury stock through third-party allotment)
We have resolved to transfer treasury stock (hereinafter “the Transfer of Treasury Stock”) through third-party allotment with
JP Employee Stock Ownership Association as a transferee, at a meeting of our Board of Directors held on January 23, 2023.
1. Overview of the transfer(1) Transfer date

March 27, 2023

(2) Type and number of shares to betransferred

240,950 of our common shares (Note)(3) Transfer price356 yen per share(4) Total transfer amount

85,778,200 yen (Note)(5) Transfer method

Third-party allotment

JP Employee Stock Ownership Association (hereinafter “the Stock
Ownership Association”)
We have submitted a securities notice pursuant to the Financial Instruments(7) Otherand Exchange Act for the Transfer of Treasury Stock.
(Note) The number of shares to be transferred and the total transfer amount are based on the assumed maximum value inthe event all employees eligible to become members in the Stock Ownership Association join it and agree to thisscheme.
(6) Planned transferee-9-2. Purpose of and reasons for the transfer
On January 23, 2023, we have decided to introduce an incentive plan (hereinafter “the Scheme”) aimed at improving the
motivation of our Employees to improve our mid- to long-term shareholder value.
In the Scheme, we will give a special incentive to those who agree to the Scheme among our Employees, and allot commonshares issued by our company (hereinafter “our Shares”) to the Stock Ownership Association with the contribution of said
special incentive and through third-party allotment. The scheme will allow our Employees to build assets by possessing ourShares. That will improve their motivation to work. In addition, the Scheme aims to raise the awareness of our Employees toparticipate in management as we celebrate the 30th anniversary of our establishment. Together with this, it is intended to improvethe motivation of our Employees to improve our mid- to long-term shareholder value.
We will finalize the number of shares to be transferred at a later date as stated in “1. Overview of the transfer (Note).” We plan totransfer up to 240,950 shares to the Stock Ownership Association.

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