May 13, 2024
Company:
Representative:

Contact:

JP-HOLDINGS, INC.
Tohru Sakai,President and Representative Director(Stock Code: 2749, Prime Market)
Kenji Zushi,Executive Officer(Tel: +81 52 933 5419)

To whom it may concern,

Notice of the Rolling of the Medium-term Management Plan
JP-HOLDINGS, INC. announced our Medium-term Management Plan in “Notice of the Rolling of theMedium-term Management Plan” on May 11, 2023, to respond quickly and flexibly to changes in the businessenvironment. We have now formulated our Three-year Medium-term Management Plan starting in the fiscalyear ending March 31, 2025 with a rolling method, given the changes in the business environment, in addition
to the fact that our company reached the operating income target set for the fiscal year ending March 31, 2026
two years ahead of schedule in the fiscal year ended March 31, 2024.
1. Background of the Rolling of the Medium-term Management Plan
Birth rates are declining at an accelerated pace while the Japanese government is making efforts to create a
supportive environment in which families can raise their children with a sense of safety and security as a measureagainst the decline in birth rates. Considering such changes in the external environment, our corporate groupdrew up the Medium-term Management Plan (for the period between the fiscal year ended March 31, 2024 andthe fiscal year ending March 31, 2026) on May 11, 2023 with a rolling method and set priority targets, “Achievegrowth and establish a competitive advantage,” “Reform our profit structure,” and “Reform our management
base,” and we have been striving to grow sustainably while settling social issues through our childcare support
business.
Specifically, we propelled forward “building of nursery schools and facilities that would be selected bycustomers” by pursuing differentiation strategies, such as proactively undertaking the operation of new facilities
with the aim of doubling the number of the existing school clubs and children’s houses which we are operating
to 200 through the development of new businesses, promotion of proactive mergers and acquisitions that areintended to expand the existing businesses and new business domains, enrichment of learning programs that takeadvantage of our competitive advantages (such as adoption of childcare and after-school programs into which
STEAMS education is incorporated), provision of extracurricular activities outside school hours (such as English,gymnastics, and music classes), operation of bilingual nursery schools that are staffed with native English
teachers as our new facilities, adoption of Montessori method-based nursery schools, and dominant strategies incooperation with nursery schools, school clubs and children’s houses with the intention of establishing acomprehensive childcare support system that covers infants, toddlers, and school-age children.
Furthermore, as one of our initiatives for new business development, we acquired all the shares of ONE’S
WILL CO. LTD., which specializes in temporary foreign staffing services, on February 9, 2024, making it oneof our wholly owned subsidiaries.
This allows us to develop a new business while taking advantage of the strengths of the two companies, suchas acquisition of workers with expertise, including nursery school staff, and utilization of talented humanresources with foreign nationality, in order to cope with the labor shortage in Japan and deal with a number ofdrastic countermeasures taken by the Japanese government against declining birth rates.
As a result of efforts to succeed in various measures, build an efficient management structure and maximize
subsidies in our Medium-term Management Plan (fiscal year ended March 31, 2024 to fiscal year ending March31, 2026), we have achieved recorded-high sales and profit in the fiscal year ended March 31, 2024, and wereached the operating income target set in the Medium-term Management Plan for the term ending March 31,2026 two years ahead of schedule. We, therefore, decided to review and revise the consolidated numerical targets
using a rolling method in line with the announcement of the consolidated earnings forecast for the fiscal year
ending March 31, 2025.
We will continuously strive to attain the priority targets, “Achieve growth and establish a competitive
advantage,” “Reform our profit structure,” and “Reform our management base” set in the Medium-termManagement Plan, this fiscal year like in the previous fiscal year in order to gain a greater competitive advantage
and reform and improve our management base. We will formulate a Three-year Medium-term Management Planwith a rolling method, which we revise every term in principle, to flexibly respond to future changes in themanagement environment.
2. Priority Targets, Measures, and Forecasts of the Medium-Term Management Plan (Consolidated)(1) Three-year Consolidated Numerical Plan
With a focus on the childcare support business, one of our existing businesses, the Medium-Term Management
Plan drawn up as a rolling plan is aimed at further boosting earnings through optimization of business processes
using systems, as well as opening new facilities, undertaking the operation of facilities, enriching highlyspecialized and high-quality learning programs offered according to each child’s level, and propelling forward
the employment placement business and temporary staffing business.
The consolidated numerical plan of the Medium-Term Management Plan does not cover the mergers andacquisitions, or the overseas business, which our corporate group is proactively engaging in, or the number ofchildren per nursery teacher or the new system that offers childcare services to all children regardless of parents’
employment status as part of the drastic measures taken by Japan’s government against the decline in birth rates,or policies of each municipality, because any details have not been provided at the time of designing the plan.
We will review and revise the plan once details of such matters have been determined, and we will publish
the revised plan.
[Initial consolidated numerical plan] Announced on May 11, 2023
FY3/23

FY3/24(Unit: million yen)
FY3/25Previous
resultChangefrom thepreviousterm

Net sales

35,507

3.3%

Changefrom theprevious
term
2.5%
36,390Operating

3,667

9.6%

3,820

Initialforecast

4.2%

TargetFY3/26

Changefrom theprevious
termTargetChangefrom theprevious
term

37,2202.3%

38,340

3.0%

4,100

7.3%

4,330

5.6%

incomeNoteThe initial forecast for the fiscal year ended March 31, 2024 in this earnings forecast was as published on May
11, 2023.
We revised the initial earnings forecast for the fiscal year ended March 31, 2024 and published the revised
forecast on February 13, 2024.

[Consolidated numerical plan with a rolling method]
FY3/24

Net sales(Unit: million yen)

FY3/25

FY3/26

Previous
resultChangefrom theprevious
term

Forecast

Changefrom theprevious
term

37,856

6.6%

38,528

1.8%

Target39,163

FY3/27

Changefrom theprevious
term
1.6%

Target40,165

Changefrom theprevious
term
2.6%

Operating

4,584
25.0%
4,751
4,837
1.8%
5,073
4.9%
3.6%
incomeNoteThis Medium-term Management Plan is based on the current business environment. Please note that actual
business results may differ significantly from the forecast, and that it is subject to change without noticedepending on changes in the business environment in the future.
(2) Priority Targets of the Medium-Term Management Plan
We will aim to create new services and value to realize the management philosophy of our group:“Through childcare support, we will contribute to creating smiles for everyone.”
We will create new services and value, establish a competitive advantage and solve social issues through ourbusiness by proactively developing new businesses for growth, developing infrastructure utilizing, M&As andsystemization, and building solid business foundations with structural reforms and business reforms. Throughthese efforts, we will aim for sustainable growth.
1) Achieve growth and establish a competitive advantage
We will enhance the employment placement business, the temporary staffing business and the overseas
business as new businesses aimed at medium- and long-term growth, proactively promote M&As to expand ourexisting businesses and create new businesses, enrich our learning programs to ensure a competitive advantage,
promote various differentiation strategies to solve concerns of parents, and implement measures to solve socialissues.
(i) Expansion of the scale and revenues of the employment placement business and the temporary staffing
business for Japanese and foreign workers with expertiseWe strive to boost revenues by strengthening the structure of sales activities while cooperating with local
educational institutions and organizations for dispatching talented workers with foreign nationality.
Taking advantage of the know-how of childcare support services that our corporate group has gained, weendeavor to monetize the employment placement business and the temporary staffing business for nurseryteachers, nurses, and caregivers, who are specialists working in Japan, as swiftly as possible and build thefoundation for the business by taking new approaches in the business.
(ii) Operation of facilities in cooperation with local companies mainly in Southeast Asia with the aim ofdealing with globalization as swiftly as possible
We strive to increase the number of facilities that we operate in Southeast Asia in cooperation with local bluechip companies.
We will develop the business in Southeast Asia in a multifaceted manner by taking advantage of various
Japanese educational programs and the know-how of childcare support services that our corporate group has
gained in Japan.

(iii) Promotion of new learning programs which respond to an expansion in the existing businesses andbuilding of nursery schools and facilities that would be selected by customers through regional
cooperation
We will deploy initiatives to enrich new learning programs (introduction of STEAMS childcare and after-schoolprograms) and expand the future possibilities of children by developing bilingual nursery schools with native
English teachers. In addition, we will develop a high-quality fee-based learning program business which
responds to deregulation.
We will promote the “My Nursery School System” (support for those who are about to give birth and raisechildren) by strengthening cooperation with local communities to develop the childcaring environment.
(iv) Doubling the number of school clubs and children’s houses whose operation we are entrusted withbased on the dominant strategies as swiftly as possible
We strive to double the number of school clubs and children’s houses we operate to 200 as swiftly as possible
in order to establish a comprehensive childcare support system that cover infants, toddlers, and school-age
children.
(v) New business development to solve the concerns of parents and social issues
We endeavor to develop a new value creation business as swiftly as possible in cooperation with DUSKIN CO.,LTD., one of our business partners.
We will engage in a lesson business utilizing extracurricular time (English, gymnastics, music classes, etc.)
We promote programs and experiential learning developed independently by our company for the future ofchildren.
(vi) Proactive promotion of M&As
While the industry environment is undergoing changes, we will proactively promote M&As for companies inthe same industry which consider the future restructuring of the industry, surrounding companies relating tochildcare for business expansion and companies for which we can obtain synergistic effects.
2) Reform our profit structure
We will improve profitability by reviewing the business structure, eliminating wasteful operations andimproving management efficiency through ICT. We will also further streamline operations by reforming businessprocesses and introducing systems.
(i) Optimization of management and cost reductions
We will reduce indirect costs through systemization, optimization of staffing, strengthening of income andexpenditure management, thorough cost controls, operation by utilizing data, and streamlining of operations byeliminating wasteful operations.
(ii) Strengthening of the revenue baseWe will put into practice various measures to respond to deregulation and changes in the subsidy system.
As a dominant strategy, we will promote the opening of new nursery schools and the new contracting of school
clubs and children’s houses to establish a comprehensive childcare support structure for parents taking care ofinfants, toddlers and school-age children. We will then optimize staffing, streamline operations and strengthen
assistance for childcare support.
3) Reform our management base
The key to our business is people. Therefore, we will enhance our personnel education and training structure.
At the same time, we will retain and develop outstanding human resources and improve employee engagement
to lead to a change in awareness. Moreover, we will strengthen our human resources strategy and group
governance to support sustainable growth and superiority.

(i) Human resource development and corporate culture reform
We will enhance training to build the foundation of human resources and reform our corporate culture bychanging awareness. We will then aim to improve employee motivation and lower the turnover rate.
(ii) Sophistication of business management
We will strengthen our comprehensive management base by implementing company-wide management evenmore efficiently and effectively. We will achieve that by strengthening our governance, establishing a selfcontained business and operational management structure, implementing thorough risk management andimproving awareness of compliance.
(iii) Strengthen initiatives for attaining SDGs and environmental improvement
We will engage in social contribution activities originating from childcare support and environmentally-friendly
business operations.