Summary of Business Results for the First Quarter Ended June 30, 2021
[Japan GAAP] (Consolidated)
August 12, 2021
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: August 12, 2021
Preparation of supplementary financial document: None
Results briefing: None

Listed on the TSE 1
T E L: +81-52-933-5419
Expected starting date of dividend payment: -（Rounded down to million yen）

1. Consolidated business results for the three months ended June 2021
(April 1, 2021 through June 30, 2021)(1) Consolidated results of operations(% change from the previous corresponding period)
Net sales

Operating income

Ordinary income

Net income attributable toowners of parent

Million yen% Million yen% Million yen% Million yen%
Three months ended Jun. 2021
8,371
4.6
178
-32.2
186
-30.1
105
-40.4
Three months ended Jun. 2020
8,004
1.8
262
51.9
267
42.5
177
27.1
(Note) Comprehensive income
Three months ended June 2021: 121 million yen (-51.8%)
Three months ended June 2020: 251 million yen (55.5%)
Net income
Diluted net income perper share
share
Yen
Yen
1.21
Three months ended Jun. 2021
2.03
Three months ended Jun. 2020
(Note) In the first quarter of the current fiscal year, the Company changed the presentation of "subsidy income" related to the childcare
business, which was previously included in non-operating income, to "net sales." As a result of this change, major management
indices for the first quarter of the previous fiscal year are based on the indices after this reclassification.

(2) Consolidated financial position
Total assets

Net assets

Million yen
29,068
As of Jun. 30, 2021
29,740
As of Mar. 31, 2021
(Reference) Shareholders’ equity
As of June 30, 2021: 9,787 million yen
As of March 31, 2021: 10,007 million yen

Million yen
9,787
10,007

Shareholders’ equity
ratio
%
33.7
33.7

2. Dividends
End of 1Q

Yen
0.00

Annual dividend
End of 3Q
Yen
-

0.00

-

End of 2Q
Yen-

Year ended Mar. 2021
Year ending Mar. 2022
Year ending Mar. 2022 (forecast)(Note) Revisions to dividend forecast for the current quarter: None

Year-end

Total
Yen
3.90

Yen
3.90

4.50

4.50

3．Forecast of consolidated business results for the fiscal year ending March 2022
(April 1, 2021 through March 31, 2022)(% change from the previous corresponding period)
Net sales
Million yen

Operating income%

Million yen

Net income attributable toowners of parent

Ordinary income%

Million yen%

Million yen%

Net income
per share
Yen

Year ending Mar. 2022
33,700
0.6
2,300
-19.5
2,300
-22.0
1,450 169.7
16.58(Note 1) Revisions to business forecast for the current quarter: Yes(Note 2) In the first quarter of the current fiscal year, the Company changed the presentation of "subsidy income" related to thechildcare business, which was previously included in non-operating income, to "net sales." As a result, net sales and operating
income increased by 500 million yen, respectively, compared to the previous business forecasts.

*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 standards②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: Yes: None: None: None(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of June 30, 2021
87,849,400 shares
As of March 31, 2021
87,849,400 shares②Treasury stock at the end of period
As of June 30, 2021
380,707 shares
As of March 31, 2021
380,707 shares③Average number of stock during period (quarterly cumulative period)
Three months ended June 2021
87,468,693 shares
Three months ended June 2020
87,468,693 shares*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants
or auditing firms.
*Explanation regarding appropriate use of business forecasts and other special instructions∙ 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.

〇 Table of Contents of the Appendix

1. Qualitative Information on Quarterly Financial Results………………………………….……… 2(1) Results of Operations…………………………………………………………….…………… 2(2) Financial Position……………………………………………………………….…………….. 3(3) Consolidated Earnings Forecasts………………………………………………….…………... 4
2. Quarterly Consolidated Financial Statements……………………………………………………. 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)………………………………………………………………. 9-1-

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the first quarter of the current fiscal year, the Japanese economy experienced a significant decline in economic activity due to thecontinuing spread of COVID-19, which restricted corporate activities and consumer spending. Currently, the Company is gradually
resuming economic activities while assessing the status of infections. However, the economic recovery is limited and the outlook
remains uncertain.
Meanwhile, in the child-raising service business, the environment surrounding child-raising is rapidly changing. These include anincrease in dual-income households, the problem of children on waiting lists in some regions, a continuing shortage of childcare
workers, a further acceleration of the declining birth rate society due to a recent sharp drop in the birth rate, and changes in working
styles and lifestyles due to the expansion of COVID-19.
On December 21, 2020, the government announced the “New Child-rearing security Plan”, which aims to reduce the number ofchildren on the waiting list. In order to cope with the increase in female employment rate, the government plans to provide childcare
services for approximately 140,000 children over the four-year period from 2021 to the end of 2024. In addition, the government has
been actively discussing the establishment of a "Children's Agency" and has made a proposal to raise the share of government
spending on children's policies to a level comparable to that of European countries, and the social role of childcare in creating anenvironment conducive to child-raising is expected to become increasingly important.
Under these severe situations, as measures against COVID-19, our group, in collaboration with local governments, has established
our own 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 such as staggered work
hours and remote working at the head office and Tokyo headquarters. In addition, in order to further improve the quality of childraising services and expand the scope of its business, the Company is capturing changes in the social environment and continuingwith the management policies of the previous fiscal year. The Company has set key objectives of "improve profitability andefficiency," "improve soundness," and "improve growth potential." We will effectively allocate and invest management resources tobuild a solid management foundation. Specifically, with digital transformation (DX) as the pillar of reform to respond to changes inthe social environment, in terms of "improve profitability and efficiency," we will take these initiatives: improve early learning toincrease the number of children accepted at existing childcare support facilities as our existing business, develop and introduce newcontent, improve profitability by further optimizing staffing, and accelerate operational efficiency by promoting the use of ICT in
facilities. In terms of "improve soundness," as the key of childcare support is "human resources," we are working to establish a new
personnel system, expand our human resource education and training systems and improve operational efficiency throughsystemization. As for the “improve growth potential”, the Group worked to develop services and products that provide added value,
including the introduction of a new early learning programs and the development of products related to child-raising support,
through a business alliance with GAKKEN HOLDINGS CO.,LTD.
As for the new facility openings, the Group has opened a total of 11 facilities during the first quarter of the fiscal year ending March
2022, according to the plan, including 3 nursery schools (3 in Tokyo) and 8 school clubs and children's houses (8 in Tokyo).
(Nursery school)
Asc Kami-Shakujii Nursery School(Apr. 1, 2021)

Asc Kanamachi Nursery School(Apr. 1, 2021)

Asc Higashikasai Nursery School No.2

(Apr. 1, 2021)(School club/Children's house)
Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji Genkikko Club No. 2 (Apr. 1, 2021)
Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji Genkikko Club No. 3 (Apr. 1, 2021)
Mitaka City Rokusho School Club A(Apr. 1, 2021)

Niji-iro Kids Club

(Apr. 1, 2021)

Bancho Elementary School After School No. 1(Apr. 1, 2021)

Bancho Elementary School After School No. 2(Apr. 1, 2021)

Bancho Elementary School After School Kids’Club (Play school)(Apr. 1, 2021)

Jindaiji Children’s House(Apr. 1, 2021)*1: As of April 1, 2021, Tokyo Licensed Nursery Schools named Ask Ontake Nursery School, which had been running since August 1,
2003 and Ask Shimomaruko Nursery School, which had been running since April 1, 2010, were changed into licensed nursery school.
*2: April 1, 2021, with the opening of the Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji Genkikko Club No. 1, Wakuwaku
Takinogawa Momiji Hiroba was renamed as Wakuwaku Takinogawa Momiji Hiroba/Takinogawa Momiji Genkikko Club No. 1.
*3: As of March 31, 2021, the Company closed Tokyo Licensed Nursery Schools named Ask Iidabashi Nursery School, Ask Nishishinjuku
Nursery School, Ask Ikebukuro Nursery School, Ask Yukigaya-Otsuka Nursery School, and a private school club named AEL
Yokohama Business Park. In addition, due to the expiration of the contract, the Company withdrew from school clubs named Nakano-ku
Kids Plaza Yato, Kita-ku Sakura Club No. 1, Kita-ku Daini Sakura Club No. 2, and a children's house named Sayama City Chuo
Children's House on March 31, 2021.

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As a result, the Group came to have 211 nursery schools, 81 school clubs, 11 children's houses, making a total of 303 facilities forsupporting child-raising at the end of June 2021.
As a result, the Group’s consolidated net sales were 8,371 million yen (up 4.6% year on year), operating income was 178 million yen(down 32.2% year on year), ordinary income was 186 million yen (down 30.1% year on year), and net income attributable to ownersof parent was 105 million yen (down 40.4% year on year).
The major factors are as follows:
Although the "State of Emergency" was declared from April 25 to June 20, 2021 to prevent the spread of COVID-19, it did not leadto the closure of the Company’s each childcare facility, and net sales increased year on year due to the opening of new facilities andan increase in the number of children accepted at existing facilities.
Despite the increase in sales due to the opening of new facilities and other factors, operating income decreased year on year due tospecial factors such as an increase in the provision for bonuses due to a change in the bonus payment period following the
introduction of the new personnel system and an increase in expenses associated with the introduction of the new system.
Ordinary income and net income attributable to owners of parent also decreased year on year due to a decrease in operating income
reflecting the impact of the increase in expenses resulting from the special factors described above.
The performance is in line with the business forecasts for the fiscal year ending March 2022, which is planned at the beginning of theperiod.
With regard to subsidies, etc. received from local governments for rental company housing for nursery school teachers, the amount
was previously recorded as "subsidy income" under non-operating income, but from the first quarter of the current fiscal year, such
subsidies, etc. are now recorded as "net sales." This change in presentation is due to the fact that the qualitative importance of such
subsidies, etc. to the childcare business has increased, and also as a result of confirming and organizing the subsidy system related tothe childcare business as a result of investigating and studying the "Accounting Standard for Revenue Recognition: we made thejudgment that it would be possible to present the actual status of the business more appropriately if the relevant amounts wererecorded in the same category as other subsidies. Due to this change in presentation, reclassifications have been made for the firstquarter of the previous fiscal year.

(2) Financial Position
As for the financial position at the end of the first quarter of the current fiscal year, the total assets amounted to 29,068 million yen(down 671 million yen from the end of the previous fiscal year).
Current assets totaled 15,042 million yen (down 97 million yen), mainly reflecting increases of 758 million yen in cash and deposits
and 112 million yen in others, while there were decreases of 829 million yen in accounts receivable and 121 million yen in
inventories.
Fixed assets totaled 14,026 million yen (down 574 million yen). This was mainly due to an increase of 51 million yen in deferred tax
assets, while there were decreases of 474 million yen in construction in progress, 103 million yen in buildings and structures, and 58
million yen in long-term loans receivable.
Total liabilities amounted to 19,280 million yen (down 451 million yen).
Current liabilities totaled 7,966 million yen (up 136 million yen). This was mainly due to increases of 566 million yen in others, 298
million yen in accounts payable, while there were decreases of 444 million yen in income taxes payable, 98 million yen in reserve
for bonuses, 77 million yen in notes and accounts payable-trade, and 62 million yen in accrued consumption taxes.
Fixed liabilities totaled 11,314 million yen (down 588 million yen). This was mainly due to a decrease of 547 million yen in longterm loans payable.
Total net assets as of the end of the first quarter of the current fiscal year totaled 9,787 million yen (down 219 million yen), mainly
due to a decrease of 235 million yen in retained earnings.

-3-(3) Consolidated Earnings Forecasts
Regarding the full-year consolidated business forecast announced on May 13, 2021, the amount of subsidies, etc. received fromlocal governments for rental company housing for nursery school teachers, the amount was previously recorded as "subsidy
income" under non-operating income, but from the first quarter of the current fiscal year, such subsidies, etc. are now recorded as"net sales." As a result, net sales and operating income increased by 500 million yen, respectively, compared to the previous
forecasts.
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, 2021)

Current First Quarter(June 30, 2021)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade

11,020,922
88,259

11,779,802
69,586Inventories
Accounts receivable - other167,4813,009,655

45,5902,180,481

858,136-5,057

970,643-3,984

15,139,399

15,042,120

12,853,109

12,826,966

Accumulated depreciation and impairment-7,439,556-7,516,954

Buildings and structures, net

5,413,552

5,310,012

Machinery, equipment and vehicles

203

203

Accumulated depreciation

-92

-99

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

Machinery, equipment and vehicles, net

111

104

998,658

1,046,426

Accumulated depreciation and impairment-770,948-790,183

Tools, furniture and fixtures, net

Tools, furniture and fixtures

227,710

256,242Land
Construction in progress

585,678
474,178585,678-

Total tangible fixed assets

6,701,231

6,152,037

167,122

159,526

Intangible assets
Goodwill
Other

47,30742,434

Total intangible assets

214,430

201,960

Investment securities
Long-term loans receivable

382,394
3,170,376

408,324
3,111,944

Guarantee deposits
Deferred tax assets

1,906,868
1,631,311

1,876,376
1,682,490

Other
Allowance for doubtful accounts

603,466-8,871

600,253-6,683

Total investments and other assets

7,685,546

7,672,706

14,601,208

14,026,705

29,740,607

29,068,825

Investments and other assets

Total fixed assets
Total assets-5-

(Thousand yen)Previous Fiscal Year
(March 31, 2021)

Current First Quarter(June 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of long-term loans payable219,266
3,307,412

141,7033,263,432

Accounts payable – other
Income taxes payable

1,634,568
551,678

1,933,287
107,239

Accrued consumption taxes
Reserve for bonuses

160,836
544,474

98,432445,650

Asset retirement obligation
Other

51,9001,359,619

50,0701,926,254

Total current liabilities

7,829,755

7,966,069

Long-term debt
Retirement benefit liability

10,305,896
839,667

9,758,583
842,236

Asset retirement obligation
Other

747,503
10,012

703,414
10,690

Fixed liabilities

Total fixed liabilities

11,903,079

11,314,923

19,732,834

19,280,993

Shareholders’ equity
Capital1,603,955

1,603,955

Capital surplus
Retained earnings

1,449,544
7,178,942

1,449,544
6,943,492

Total liabilities
Net assets

Treasury stock-107,515-107,515

10,124,926

9,889,476

Accumulated other comprehensive income
Valuation difference on available-for- salesecurities
Deferred gains or losses on ledges-84,960-74,178-6,948-7,419Remeasurements of defined benefit plans-25,245-20,046

Total shareholders’ equity

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6--117,154-101,643

10,007,772

9,787,832

29,740,607

29,068,825

(2) [Quarterly Consolidated Statements of Income and Statements of Comprehensive Income][Quarterly Consolidated Statement of Income][First Quarter of FY3/22]

Net sales
Cost of sales

Previous First Quarter(Apr. 1, 2020
- June 30, 2020)
8,004,592
6,963,492(Thousand yen)
Current First Quarter(Apr. 1, 2021
- June 30, 2021)
8,371,229
7,358,832

Gross profit

1,041,100

1,012,397

Selling, general and administrative expenses

778,349

834,216

Operating income

262,750

178,181Non-operating income
Interest income

21,795

19,464

Other

2,655

6,229

Total non-operating income

24,451

25,694

Interest expenses
Other

14,1395,818

15,527
1,662

Total non-operating expenses

19,957

17,190267,243

186,685035Non-operating expenses

Ordinary income
Extraordinary loss
Loss on retirement of fixed assets

035Income before income taxes and others

Total extraordinary loss

267,243

186,650

Corporate, inhabitant and enterprise taxes
Income taxes-deferred

84,686
5,269

139,424-58,452

Total income tax

89,95580,972

Net income

177,288

105,677

Net income attributable to owners of parent

177,288

105,677-7-

[Quarterly Consolidated Statement of Comprehensive Income][First Quarter of FY3/22]
Previous First Quarter(Apr. 1, 2020
- June 30, 2020)
177,288(Thousand yen)
Current First Quarter(Apr. 1, 2021
- June 30, 2021)
105,677

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

62,807699

10,782-470

Foreign currency translation adjustments
Remeasurements of defined benefit plans

2,457
8,158

5,199

Total other comprehensive income

74,121

15,511

251,410

121,188

251,410

121,188

Net income
Total accumulated other comprehensive income

Comprehensive income
BreakdownComprehensive income attributable to owners of parent-8-

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)First quarter of FY3/22 (April 1, 2021 – June 30, 2021)
None applicable(Notes on significant changes in shareholders' equity)
First quarter of FY3/22 (April 1, 2021 – June 30, 2021)
None applicable(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020, hereinafter referred to as the"Revenue Recognition Accounting Standard") and other standards are applied from the beginning of the first quarter of thecurrent fiscal year to recognize revenue at the amount expected to be received in exchange for the promised goods or services
when control of the goods or services is transferred to the customer.
There was no impact on the quarterly consolidated financial statements for the first quarter of the current fiscal year and the firstquarter of the previous fiscal year.
(Application of Accounting Standard for Fair Value Measurement)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019, hereinafter referred to as the "Fair
Value Measurement Accounting Standard") and other standards have been applied from the beginning of the first quarter of thecurrent fiscal year. In accordance with the transitional treatment stipulated in Article 19 of the Fair Value Measurement
Accounting Standard and Article 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4,2019), the new accounting policy stipulated by the Fair Value Measurement Accounting Standard will be applied in the future.
This has no impact on the quarterly consolidated financial statements.

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