Summary of Business Results for the Third Quarter Ended December 31, 2019
[Japan GAAP] (Consolidated)
February 7, 2020
Listed on the TSE 1
URL: https://www.jp-holdings.co.jp

Company
JP-HOLDINGS, INC.
Stock Code2749
Representative
Koichiro Furukawa, President and Representative Director
Contact
Hikaru Kimura, Executive Officer
Expected date of filing of annual securities report: February 13, 2020
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 2019
(April 1, 2019 through December 31, 2019)(1) Consolidated results of operations(% change from the previous corresponding period)

Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Million yen% Million yen%
23,4448.6965
44.5
Nine months ended Dec. 2019
21,5899.26684.9
Nine months ended Dec. 2018
(Note) Comprehensive income
Nine months ended December 2019: 903 million yen (82.6%)
Nine months ended December 2018: 494 million yen (0.9%)
Net income
Diluted net income perper shareshareYen
Yen
9.69
Nine months ended Dec. 20196.76
Nine months ended Dec. 2018

Million yen
1,338
967%
38.4
13.1

Million yen
849
580%
46.3
19.9(2) Consolidated financial position
Total assets
Million yen
26,17628,255

As of Dec. 31, 2019
As of Mar. 31, 2019

Shareholders’ equity
ratio

Net assets
Million yen
9,503
8,950%
36.3
31.7(Reference) Shareholders’ equity
As of December 31, 2019: 9,503 million yen
As of March 31 2019: 8,950 million yen

2. Dividends
End of 1Q
Year ended Mar. 2019Year ending Mar. 2020
Year ending Mar. 2020 (forecast)

Annual dividend
End of 3QYenYen
0.00
0.00
-

End of 2Q
Yen-Year-endTotal

Yen
3.70

Yen
3.70

3.90

3.90

(Notes) Revisions to dividend forecast for the current quarter: None

3．Forecast of consolidated business results for the fiscal year ending March 2020
(April 1, 2019 through March 31, 2020)
Net sales(% change from the previous corresponding period)
Operating income

Million yen% Million yen%
Year ending Mar. 2020
32,0009.2
1,811 18.3
(Notes) Revisions to business forecast for the current quarter: None

Ordinary income
Million yen
2,300%
19.8

Net income attributable toowners of parent

Million yen
1,212%
13.2

Net incomeper shareYen

14.08

*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(4) Shares outstanding (common stock): None: None
: None: None①Number of shares outstanding at the end of period (treasury stock included)
As of December 31, 201987,849,400 shares
As of March 31, 201987,849,400 shares②Treasury stock at the end of period
As of December 31, 2019
380,707 shares
As of March 31, 2019297,807 shares③Average number of stock during period (quarterly cumulative period)
Nine months ended December 201987,704,383 shares
Nine months ended December 201885,862,853 shares(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and theaverage number of stock during period includes the company's shares held by Trust & Custody Services Bank, Ltd. as
trust property of "Stock Benefit Trust (Employee Stock Ownership Plan)".

*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants
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 3).

○ Table of Contents of the Appendix

1. Qualitative Information on Results for the Current Quarter ............................................................................ 2(1) Results of Operations ..................................................................................................................................... 2(2) Financial Position .......................................................................................................................................... 3(3) Consolidated Earnings Forecasts ................................................................................................................... 3
2. Quarterly Consolidated Financial Statements .................................................................................................. 4(1) Quarterly Consolidated Balance Sheets ......................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income ........................... 6(3) Notes on Quarterly Consolidated Financial Statements ................................................................................. 8(Notes on going concern assumptions) ........................................................................................................ 8(Notes if there is a significant change in the amount of shareholders' equity) ............................................. 8-1-1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
In the third quarter of the current fiscal year, the Japanese economy continued to show a gradual recovery as the environment ofboth employment and personal income is improving, However, the outlook remains unclear due to uncertainties in the world
economy caused by the deceleration of the Chinese economy and the worsening situation in the Middle East countries, as wellas concerns about a drop in consumption due to the consumption tax hike.
As for the environment surrounding the child-raising service, the employment rate of women has been rising due to women'sadvancement and active participation in society and various measures by the government to promote their participation in theworkplace, so demand for the child-raising service continues to be high. In order to meet rising demand for child-raising
service, the government has formulated various measures to improve child care facilities and secure nursery teachers with theaim of providing daycare for 320,000 children by the end of March 2021. With the implementation of free child education andchildcare from October 2019, it is anticipated that people looking for entry into childcare facilities will increase, and theCompany believes that the social role played by child-raising service will become more important than ever. On the other hand,in order to meet these demands, securing nursery teachers, who are responsible for child-raising support, continues to bechallenging, especially in metropolitan area.
Under these circumstances, the Group is continuing to expand its share of the market in collaboration with local governments
throughout Japan, while working to secure nursery teachers, which is our urgent priority, and to further improve the quality ofchildcare services.
In addition, under the "hands-on policy", the Company is collecting issues at each facility and workplace and working on
improvements and reforms to create a comfortable working environment. This has led to an increase in the number of nurseryteachers hired and an increase in the retention rate. In addition, as a measure for efficient and effective organizational
management, the Company has introduced a Block System that divide Japan into the 5 operating areas to take careful measures,and have worked to develop new businesses for sustainable growth.
Along with the promotion of various measures, the Group has opened a total of 12 facilities in the third quarter of the current
fiscal year, including 10 nursery schools (9 in Tokyo, 1 in Shiga) and 2 school clubs (2 in Tokyo), in order to respond to thegrowing needs of nursery facilities.
As a result, the Group came to have 209 nursery schools, 72 school clubs, 11 children's houses, 4 private school clubs, and 1
kindergarten (overseas facility), making a total of 297 facilities for supporting child-raising at the end of the third quarter of thecurrent fiscal year.
With the establishment of the Wakuwaku Fukuro Hiroba /Akakita Hibari Club No. 2, the Akakita Hibari Club and the Kita City
Fukuro Cultivation Room are operating as the Wakuwaku Fukuro Hiroba /Akakita Hibari Club No.1 and the Wakuwaku Fukuro
Hiroba /Akakita Hibari Club No.3, respectively, as of April 1, 2019.
Separate from the new facility, the following changes have been made as of April 1, 2019: Asc Ikegami Nursery School, which
had been running since February 1, 2008 as an existing Tokyo Licensed Nursery School was changed into a licensed nurseryschool; Asc Toyotama 1-chome Nursery School A and B, which had been running since April 1, 2018, as small-scale childcare
facilities, were integrated and changed into a licensed nursery school; and Kawasaki City Miyamaedaira Nursery School, which
had been running as a public facility under private management since April 1, 2009, was changed to a private facility under
private management and is now run as Asc Miyamaedaira Nursery School.
For the third quarter of the current fiscal year, the Group’s consolidated net sales were 23,444 million yen (up 8.6% year onyear), operating income was 965 million yen (up 44.5%), ordinary income was 1,338 million yen (up 38.4%), and net income
attributable to owners of parent was 849 million yen (up 46.3%).
The major factors are as follows:
Net sales increased year on year, mainly due to the opening of new facilities, an increase in the number of children accepted atexisting facilities, and an increase in rent subsidies at some existing facilities.
Operating income increased year on year mainly due to an increase in sales resulting from an increase in the number of children
accepted at existing facilities, as well as a reduction in SG&A expenses resulting from a review of various expenses.
In addition, both ordinary income and net income attributable to owners of parent increased year on year thanks to an increasein operating income and increased subsidies associated with an increase in users of the corporate dormitory.

-2-

(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 26,176 million yen(down 2,078 million yen from the end of the previous fiscal year).
Current assets totaled 10,059 million yen (down 398 million yen), mainly reflecting increases of 102 million yen in others, while
there were decreases of 234 million yen in cash and deposits, 164 million yen in accounts receivable and 104 million yen ininventories.
Fixed assets totaled 16,116 million yen (down 1,679 million yen). This was mainly due to an increase of 49 million yen in
investment securities, while there were decreases of 1,231 million yen in construction in progress, 138 million yen in deferred tax
assets, 137 million yen in long-term loans receivable, and 127 million yen in buildings and structures.
Total liabilities amounted to 16,672 (down 2,631 million yen).
Current liabilities totaled 5,688 million yen (down 2,191 million yen), mainly due to an increase of 463 million yen in others,
while there were decreases of 1,500 million yen in short-term loans payable, 498 million yen in current portion of long-term loanspayable, 306 million yen in income taxes payable, and 263 million yen in provision for bonuses.
Fixed liabilities totaled 10,984 million yen (down 440 million yen). This was mainly due to an increase of 80 million yen in
obligations for retirement plan, while there was a decrease of 519 million yen in long-term loans payable.
Total net assets as of the end of the third quarter of the current fiscal year totaled 9,503 million yen (up 553 million yen), mainly
due to increases of 524 million yen in retained earnings, 27 million yen in valuation difference on securities, and 25 million yen intreasury stock.

(3) Consolidated Earnings Forecasts
The full-year consolidated earnings forecasts have not been revised from the announcement on May 9, 2019, but actual results may
be different from the forecast according to the changes in business situations, etc.
If there are any changes, the Company will disclose them properly.

-3-2. [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Thousand yen)Previous Fiscal Year
(March 31, 2019)

Current Third Quarter(December 31, 2019)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable

6,816,439
71,657

6,581,891
74,552Inventories
Accounts receivable-other

128,900
2,491,947

23,9492,327,706

949,963-449

1,051,979-532

10,458,459

10,059,547

11,873,447

12,137,490-4,635,599-5,027,289

Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment
loss
Buildings and structures, net

7,237,848

7,110,200

Machinery, equipment and vehicles

5,637

5,637

Accumulated depreciation-3,209-3,912

Machinery, equipment and vehicles, net

2,427

1,725

Tools, furniture, and fixtures
Accumulated depreciation and impairment
loss
Tools, furniture, and fixtures, net

803,177

889,017-563,703-636,395

239,473

252,622Land

980,894

980,894

Construction in progress

1,437,264

206,033

Total tangible fixed assets

9,897,908

8,551,475

Goodwill
Other

227,894
114,985

205,105
114,808

Total intangible assets

342,879

319,913

Investment securities
Long-term loans receivable

548,080
3,419,910

597,451
3,282,293

Guarantee deposits
Deferred tax assets

1,880,239
825,742

1,874,731
687,205

891,902-10,027

813,277-9,688Intangible fixed assets

Investments and other assets

Other
Allowance for doubtful accounts
Investments and other assets
Total fixed assets
Total assets-4-7,555,848

7,245,271

17,796,637

16,116,660

28,255,096

26,176,208

(Thousand yen)Previous Fiscal Year
(March 31, 2019)

Current Third Quarter(December 31, 2019)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings

197,7421,500,000

148,548-Current portion of long-term loans payable
Accounts payable-other

2,166,092
1,570,333

1,667,792
1,530,729

Income taxes payable
Accrued consumption taxes

435,953
81,136

129,129
93,689Provision for bonuses
Asset retirement obligations

411,135
13,500147,256
3,894

Other

1,504,249

1,967,353

Total current liabilities

7,880,143

5,688,392

10,454,371

9,935,180

642,495
317,269

722,568
319,742

Fixed liabilities
Long-term debt
Obligations for retirement plan
Asset retirement obligations
Other

10,324

6,798

11,424,460

10,984,289

19,304,604

16,672,682

Capital stock
Capital surplus

1,603,955
1,449,544

1,603,955
1,449,544

Retained earnings
Treasury stock

6,184,830-81,685

6,709,324-107,515

Total shareholders' equity

Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity

9,156,643

9,655,308

Accumulated other comprehensive income
Valuation difference on securities-133,411-105,924

Deferred gains or losses on hedges
Foreign currency translation adjustment-7,165
238-4,718
3,448

Remeasurements of defined benefit plans-65,813-44,588

Total other accumulated comprehensive income-206,151-151,783

Total net assets
Total liabilities and net assets-5-8,950,492

9,503,525

28,255,096

26,176,208

(2) [Quarterly Consolidated Statements of Income and Statements of Comprehensive Income][Quarterly Consolidated Statement of Income][Third Quarter of FY3/19]

Net sales
Cost of sales

Previous Third Quarter(Apr. 1, 2018
- December 31, 2018)
21,589,993
18,867,368(Thousand yen)
Current Third Quarter(Apr. 1, 2019
- December 31, 2019)23,444,221
20,371,575

Gross profit

2,722,624

3,072,646

Selling, general and administrative expenses

2,054,579

2,107,612

Operating income

668,044965,033

Non-operating income
Interest income

80,14076,167273,781
49,206

338,722
5,467

Subsidy income
Guarantee commission received
Other

31,057

10,123

Total non-operating income

434,186

430,480

Interest expenses
Demobilization costs

40,01734,88642,7501,289Commission paid
Other54,252
5,340

3,165
9,328

Total non-operating expenses

134,496

56,533

967,734

1,338,980

Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets

77
1,764

1,215

Loss on sales of investment securities
Impairment loss (on facilities)-2,642
3,894

Non-operating expenses

Ordinary income
Extraordinary loss

1,841

7,751

Income before income taxes and others

Total extraordinary loss

965,892

1,331,228

Corporate, inhabitant and enterprise taxes

247,865

367,312

Income taxes-deferred

137,247

114,384

Total income tax

385,112481,697

Net income

580,779

849,530-64-

580,843

849,530

Net loss attributable to non-controlling interests
Net income attributable to owners of parent-6-[Quarterly Consolidated Statement of Comprehensive Income][Third Quarter of FY3/19]
Previous Third Quarter(Apr. 1, 2018
- December 31, 2018)580,779(Thousand yen)
Current Third Quarter(Apr. 1, 2019
- December 31, 2019)849,530

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-91,791-3,911

27,4862,446

Foreign currency translation adjustment
Remeasurements of defined benefit plans-4,865
14,671

3,209
21,224

Total other comprehensive income-85,898

54,367494,881

903,898

494,945

903,898-64-Net income
Other comprehensive income

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non- controllinginterests-7-

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumptions)
Current third quarter (April 1, 2019 - December 31, 2019)
None(Notes on significant changes in shareholders' equity)
Current third quarter (April 1, 2019 - December 31, 2019)
None-8-