Summary of Business Results for the Fiscal Year Ended March 31, 2024
[Japan GAAP] (Consolidated)
May 13, 2024
Company
JP-HOLDINGS, INC.
Listed on the TSE Prime
Stock Code2749
URL: https://www.jp-holdings. co.jp
Representative
Tohru Sakai, President and Representative Director
Contact
Ryoji Tsutsumi, Director
T E L: +81-52-933-5419
Expected date of annual shareholders’ meeting: June 25, 2024
Expected starting date of dividend payment: June 26, 2024
Expected date of filing of annual securities report: June 26, 2024
Preparation of supplementary financial document: Yes
Results briefing: Yes (for media members, institutional investors, analysts)（Rounded down to million yen）

1. Consolidated business results for the fiscal year ended March 2024
(April 1, 2023 through March 31, 2024)(1) Consolidated results of operations(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen
Year ended Mar. 2024
37,856
6.6
4,584
Year ended Mar. 2023
35,507
3.3
3,667(Note) Comprehensive income:Year ended March 2024: 2,948 million yen (10.3%)
Year ended March 2023: 2,672 million yen (15.7%)
Net income
per share

%
25.0
9.6

Diluted net income
per share

Yen
34.38
31.18

Year ended Mar. 2024
Year ended Mar. 2023

Ordinary income
Million yen
4,523
3,745

Return on
equity

Yen
-

%
19.7
21.1

%
20.8
11.5

Net income attributable toowners of parent

Million yen
2,929
2,698

Ratio of ordinary
income to total
assets
%
12.5
10.7

%
8.5
18.4

Ratio of operating
income to net sales
%
12.1
10.3

(2) Consolidated financial position
Total assets

Net assets

Million yen
As of Mar. 31, 2024
36,889As of Mar. 31, 2023
35,694(Reference) Shareholders’ equity:
As of March 31, 2024: 16,108 million yen
As of March 31, 2023: 13,584 million yen

Shareholders’ equity
ratio

Million yen
16,10813,584

Net assets per
share

%
43.7
38.1

Yen
188.71159.53(3) Consolidated results of cash flows

Year ended Mar. 2024
Year ended Mar. 2023

Cash flows fromoperating activities
Million yen
5,598
2,735

Cash flows frominvesting activities
Million yen-6411

Cash flows fromfinancing activities
Million yen-3,978-1,112

Cash and cash equivalents
at the end of period
Million yen
20,944
19,3302. Dividends
Annual dividend
End of
1Q
Year ended Mar. 2023
Year ended Mar. 2024
Year ending Mar. 2025
(forecast)End of2Q

End of3Q

Year-end

Total

Yen
-

Yen
0.00
0.00

Yen
-

Yen
6.00
8.00

Yen
6.00
8.00

-

0.00

-

9.50

9.50

Total
dividend(Total)Million yen
510
682

Dividend
payout ratio(Consolidated)
%
19.2
23.3
26.1

Rate of total
dividend to
net assets(Consolidated)
%
4.1
4.6

3．Forecast of consolidated business results for the fiscal year ending March 2025
(April 1, 2024 through March 31, 2025)(% change from the previous corresponding period)
Net salesYear ending Mar. 2025

Operating income

Net income attributableto owners of parent

Ordinary income

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen38,528

1.8

4,751

3.6

4,778

5.6

3,106

6.0

36.39

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes
in the scope of consolidation): None
(2) 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: None: None: None: None(3) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included)
As of March 31, 2024
87,849,400 shares
As of March 31, 2023
87,849,400 shares② Treasury stock at the end of period:
As of March 31, 2024
2,492,069 shares
As of March 31, 2023
2,697,857 shares③ Average number of stock during period
Year ended March 31, 2024
85,189,303 sharesYear ended March 31, 2023
86,537,843 shares(Reference) Summary of non-consolidated business results
1. Non-consolidated business results for the fiscal year ended March 2024
(April 1, 2023 through March 31, 2024)(1) Non-consolidated results of operations(% change from the previous corresponding period)
Year ended Mar. 2024
Year ended Mar. 2023

Net sales
Million yen
3,828
3,168

%
20.9
3.3

Operating income
Million yen
%
2,396
46.7
1,633
17.0

Yen
24.01
18.98

Diluted net income per
share
Yen
-

Net income
per share
Year ended Mar. 2024
Year ended Mar. 2023

Ordinary income
Million yen
%
2,446
39.1
1,758
15.4

Net income
Million yen
%
2,045
24.5
1,642
22.7

Shareholders’ equity
ratio

Net assets per
share(2) Non-consolidated financial position
Total assets
Million yen
As of Mar. 31, 2024
21,717
As of Mar. 31, 2023
23,580(Reference) Shareholders’ equity:
As of March 31, 2024: 8,326 million yen
As of March 31, 2023: 6,687 million yen

Net assets
Million yen
8,326
6,687

%
38.3
28.4

Yen
97.55
78.53

* Financial summary is not subject to auditing 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 thecompany 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 business forecasts, etc., please refer to “1. Summary of Operating Results (4) Future outlook” (Page 5).
・On Tuesday, May 14, 2024, the Company plans to hold results briefing for media members, institutional investors and analysts via a webcast.

〇 Table of Contents of the Appendix
1. Summary of Operating Results……………………………………………………………………………2(1) Summary of operating results for the current fiscal year………………………………………………2(2) Summary of financial condition in the current fiscal year……………………………………………4(3) Summary of cash flow in the current fiscal year……………………………………………………4(4) Future outlook…………………………………………………………………………………………5
2. Basic Policies regarding the Selection of Accounting Standards…………………………………………..7
3. Consolidated Financial Statements and Major Notes………………………………………………………8(1) Consolidated Balance Sheet…………………………………………………………………………….8(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…………10(3) Consolidated Statements of Changes in Shareholders’ Equity…………………………………………12(4) Consolidated Statement of Cash Flows…………………………………………………………………14(5) Notes on the Consolidated Financial Statements………………………………………………………..16(Notes on going concern assumption)…………………………………………………………………… 16(Changes in presentation)…………………………………………………………………………… 16(Segment information) ……………………………………………………...……………………………16(Per-stock information) ……………………………………………………………...………………...…17(Significant subsequent events) ………………………………………………………………………..…17

1

1. Summary of Operating Results(1) Summary of operating results for the current fiscal year
In the fiscal year under review, the Japanese economy continued to be uncertain due to the situation in Ukraine, the situation in
the Middle East, soaring raw material and energy prices, exchange rate fluctuations, and soaring domestic prices, despite the liftingof activity restrictions and progress toward normalization of social and economic activities following the downgrading of the legal
status of COVID-19 to “Class 5”.
Meanwhile, in the environment surrounding the child-raising support business, the “Children and Families Agency” wasestablished in April 2023 as a countermeasure against the accelerating decline in the birthrate, and in June 2023 the government
issued the "Children's Future Strategy," which outlines the specific content of measures against the declining birthrate withdifferent dimensions. As a national policy, measures against the declining birthrate have been further strengthened. The specificmeasures of the "Children's Future Strategy" include improving the placement standards for childcare workers, for the first time in
75 years, to establish a system where parents can leave their children in facilities with peace of mind. This involves securingchildcare personnel through further enhancements in their treatment. Additionally, a "Universal Childcare System" is planned to beestablished, enabling all families with children to utilize childcare centers regardless of employment requirements. These efforts
are part of the "various measures to address the decline in birth rates”. As such, initiatives aimed at creating a more supportive
environment for childcare are being accelerated. The social role of childcare support initiatives is believed to be increasingly
crucial.
As described above, while the improvement of childcare environments by the government is being expanded, in areas where thebirthrate decline is accelerating, competition among childcare facilities is intensifying to acquire the number of children. For
structural reforms for sustained growth and further earnings expansion, the Company reviewed the medium-term management plan(from FY3/24 to FY3/26) with following priority targets: “Achieve growth and establish a competitive advantage,” “Reform our
profit structure,” and “Reform our management base”. With this, we are creating new service value and establishing competitive
advantage by aggressively developing new businesses for growth through structural and business reforms, M&A, infrastructuredevelopment through systemization, etc., and building a solid business base, aiming for sustainable growth.
To effectively adapt to the changing social environment, we are deploying the following strategies. Firstly, we aim to "achieve
growth and establish a competitive advantage" by developing new businesses with a focus on medium to long-term growth.
Simultaneously, we are proactively considering M&As to not only expand existing operations but also to venture into new businessdomains. Furthermore, in order to enhance our competitive advantage, we plan to develop and expand new learning programs. For
instance, we will offer childcare and after-school programs that incorporate STEAM education, as well as after-school activities
such as English, gymnastics, and music classes. Additionally, the strategy encompasses various initiatives, including the operationof a "bilingual nursery school" with English native teachers as a new facility, introduction of “Montessori-method education
nursery school”, establishing a comprehensive childcare support system for infants, toddlers, and school-age children, andadopting a dominant strategy through collaboration between nursery schools, after-school clubs, and children’s clubs, aiming todouble the current number of after-school clubs and children’s clubs to 200 facilities through proactive expansion efforts.
Additionally, we worked on enhancing collaboration with local communities to establish the "My Nursery School System" tosupport those who are planning to have and raise children, as part of our efforts to improve the parenting environment. As such, weare actively implementing a differentiation strategy as part of our commitment to create "facilities that would continue to be
selected by customers" in various regions.
Furthermore, as part of our new business initiatives, we have established the real estate company "Kosodate Support Realty Co.,Ltd." within the group. This entity focuses on real estate intermediary services, property leasing, property management, and realestate consulting related to childcare support operations. These efforts are aimed at achieving early revenue generation.
As a new business development, on February 9, 2024, the Company acquired all shares of ONE’S WILL CO.LTD. which has
expertise in the placement and dispatch of personnel and the introduction of foreign specified skilled workers. In response to thedomestic labor shortage and in response to various measures by the government to counter the declining birthrate on a different
dimension, we are promoting the recruitment and temporary staffing services as a new business that leverages the strengths of bothcompanies, such as acquiring specialist personnel, including childcare workers, and utilizing qualified personnel from overseas.
Furthermore, on October 27, 2023, we concluded a business alliance with Duskin Co., Ltd. The purpose of the alliance is tomaximize the corporate value of both companies, create new services for solving social problems and the problems of customers
and guardians, and realize an affluent lifestyle through effective use of the management resources and know-how of bothcompanies and mutual cooperation. We have established a committee to study the collaboration and are promoting it.
As part of our Group's growth strategy, we will actively pursue M&A to create new businesses, achieve early profitability, andexpand existing businesses. In this way, we are striving for sustainable growth while realizing our Group management philosophy
of "Through child care support, we will contribute to creating smiles for everyone."2

As for the new facility openings, the Group has opened a total of 10 facilities during the fiscal year ended March 2024 according
to the plan, including 1 nursery school (in Tokyo) and 9 school clubs and children's houses (8 in Tokyo, 1 in Saitama), proceedingas planned.
(Nursery School)
Shinagawa Municipal Yashio Nishi Nursery School(Apr. 1, 2023)(School Club)
Heisei Elementary School After School Kids’ Club
Ryusen Kids’ Club
Chofu Municipal Chowa Elementary School Club No.2
Minamikko Hiroba
Minato-ku Houka-go→Club Konan
Takaban Elementary School Lan Lan Hiroba
Yonsho Aozora School Club
Asc Asakusabashi Kids’ Club
Matsubara Children's Club No.2

(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Apr. 1, 2023)(Jun. 1, 2023)(Jul. 21, 2023)(Bilingual Nursery School)
The Company changed licensed nursery schools and Tokyo Licensed Nursery Schools to bilingual nursery schools, which isstaffed by native English-speaking teachers.
Asc Bilingual Nursery School Eifuku (formerly Asc Eifuku Nursery School)(Apr. 1, 2023)
Asc Bilingual Nursery School Kameido (formerly Asc Kameido Nursery School)(Apr. 1, 2023)
GENKIDS Bilingual Nursery School Shinkoyasu (formerly GENKIDS Shinkoyasu Nursery School)(Apr. 1, 2023)
Asc Bilingual Nursery School Asakusabashi (formerly Asc Asakusabashi Nursery School)(Jun. 1, 2023)
Asc Bilingual Nursery School Meidai-mae (formerly Asc Meidai-mae Nursery School)(Jun. 1, 2023)*1: As of March 31, 2023, the Company closed Tokyo Licensed Nursery School named Asc Fudo-mae Nursery School. In addition, due to the
expiration of the contract, the Company withdrew from school clubs named Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 1,
Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 2, Wakuwaku Akabane Hiroba/Akabane Children’s Club No. 3, Wakuwaku Kirigaokasato Hiroba/Kirigaoka-satokko Club No. 1, Wakuwaku Kirigaoka-sato Hiroba/Kirigaoka-satokko Club No. 2, Wakuwaku Kirigaoka-sato
Hiroba/Kirigaoka-satokko Club No. 3, Wakuwaku Fukuro Hiroba/Akakita Hibari Club No.3, Wakuwaku Yoniwa Hiroba/Yoniwa Elementary
School Icho. Club No. 1, Wakuwaku Yoniwa Hiroba/Yoniwa Elementary School Icho. Club No. 2, Mitaka Municipal Minamiura School Club
Annex A, Minato-ku Houka-go→Club Honmura, Bunkyo-ku Meidai Temporary Childcare Room as of March 31, 2023.

As a result, the Group came to have 209 nursery schools, 86 school clubs, 11 children's houses, making a total of 306 childcare
facilities as of March 31, 2024.
As a result, the Group’s consolidated net sales were 37,856 million yen (up 6.6% year on year), operating income was 4,584
million yen (up 25.0%), ordinary income was 4,523 million yen (up 20.8%), and net income attributable to owners of parent was
2,929 million yen (up 8.5%).
The major factors are as follows:
Net sales increased 6.6% year-on-year due to an increase in the number of children accepted during the period, the opening of
new facilities, and new contracts. This was attributable to a variety of initiatives aimed at creating "facilities that would continue tobe selected by customers," including the introduction of a bilingual nursery school as a new business format, a Montessori-method
nursery school, and the expansion of preschooler learning programs.
Operating income rose 25.0% year on year, despite an increase in cost of sales due to higher electricity charges and soaring
prices for various purchased products, as a result of the above-mentioned measures, as well as efforts to maximize subsidies at
each facility, improve operating efficiency, and revise the ordering system.
Ordinary income and net income attributable to owners of the parent increased by 20.8% and 8.5% year-on-year, respectively,
both sales and profits reached record highs, thanks to growth in net sales, improved profits at existing facilities, and efficientmanagement.
By improving the profitability of existing facilities and maximizing subsidies, we achieved our operating income targets for the
fiscal year ending March 2026 two years ahead of schedule in the medium-term management plan (fiscal years ending March 2024
to 2026) revised using the rolling method.

3

(2) Summary of financial condition in the current fiscal year
As for the financial position at the end of the current fiscal year, the total assets amounted to 36,889 million yen (up 1,194
million yen from the end of the previous fiscal year).
Current assets totaled 25,374 million yen (up 1,761 million yen), mainly reflecting an increase of 1,613 million yen in cash anddeposits and 189 million yen in accounts receivable.
Fixed assets totaled 11,515 million yen (down 566 million yen). This was mainly due to decreases of 367 million yen inbuildings and structures and 225 million yen in long-term loans receivable.
Total liabilities amounted to 20,781 million yen (down 1,329 million yen).
Current liabilities amounted to 10,409 million yen (up 2,114 million yen), mainly reflecting increases of 1,212 million yen inaccounts payable-other, 659 million yen in income taxes payable, and 227 million yen in other.
Fixed liabilities totaled 10,372 million yen (down 3,444 million yen). This was mainly due to a decrease of 3,465 million yen
in long- term loans payable.
Total net assets at the end of the current fiscal year totaled 16,108 million yen (up 2,524 million yen). This was mainly due toan increase of 2,418 million yen in retained earnings.

(3) Summary of cash flow in the current fiscal year
Cash and cash equivalents (hereinafter referred to as “the funds”) for the current consolidated fiscal year were 5,598 million
yen from the funds obtained through operating activities; 6 million yen used for investing activities; and 3,978 million yen usedin financing activities, totaling 20,944 million yen, up 1,613 million yen from the end of the previous fiscal year.
The cash flow situations and their reasons for the current consolidated fiscal year are as follows:[Cash flows from operating activities]
The funds provided by operating activities were 5,598 million yen (2,735 million yen was provided during the previous
consolidated fiscal year).
This was mainly due to income before income taxes and minority interests of 4,505 million yen, an increase in accounts
payable-other and accrued expenses of 1,246 million yen, depreciation of 707 million yen, and an increase in other current
liabilities of 149 million yen, offset by income taxes paid of 860 million yen, an increase in accounts receivable-other of 185
million yen, and a decrease in advances received of 130 million yen.
[Cash flows from investing activities]
Net cash used in investing activities were 6 million yen (411 million yen was provided during the previous fiscal year).
This was mainly due to the purchase of property, plant and equipment of 291 million yen, despite proceeds from the collectionof long-term loans receivable of 281 million yen.
[Cash flows from financing activities]
Net cash used in financing activities was 3,978 million yen (1,112 million yen was used during the previous fiscal year).
This was mainly due to proceeds from long-term loans payable of 200 million yen, repayment of long-term loans payable of
3,674 million yen, and cash dividends paid of 507 million yen.
The related index of our Group’s cash flow is as follows:
FY3/22
Shareholders’ equity ratio (%)
Shareholders’ equity ratio against
current price (%)
Cash flow to interest-bearing debts
ratio (years)
Interest coverage ratio (x)FY3/23

FY3/24

34.9

38.1

43.7

55.4

86.4

130.3

4.1

5.8

2.2

54.8

38.5

86.0

Notes: Shareholders’ equity ratio = shareholders’ equity/total assets
Shareholders’ equity ratio against current price = total current stock price/total assets Cash flow to interest-bearing debts
ratio = interest-bearing debts/cash flow
Interest coverage ratio = cash flow/interest payment[Note 1] All calculated based on consolidated financial amounts.
[Note 2] Total current stock price calculated based on the total number of stocks issued minus treasury shares.
[Note 3] Cash flow here signifies operating cash flow.
[Note 4] Interest-bearing debts here include all the debts that incur interests and appropriated on the consolidated balance
sheet.

4

(4) Future outlook
Looking ahead, while the number of children on waiting lists at nursery schools is being eliminated, the number of children on
waiting lists at school clubs is increasing, and the development of a childcare environment is an issue.
Meanwhile, the government is promoting various measures to improve the childcare environment, such as the consideration of
measures to address the declining birth rate on a different dimension. The social role of the childcare support business is becoming
even more important.
In light of this situation, we intend to prioritize qualitative improvements. Through further improving the quality of our childcare
support, we need to create the "facilities that would continue to be selected by customers" that respond to changes in the social
environment and the needs of parents.
With regard to the rolled targets of our Group's medium-term management plan (from the fiscal year ending March 2024 to2026), we worked to achieve success in various measures, build an efficient management system, and maximize subsidies. As aresult, in the fiscal year ended March 2024, we were able to achieve both higher sales and profits, as well as record-high profits,
and we were able to achieve operating income for the fiscal year ending March 2026, which is the target value of our medium-term
management plan, 2 years ahead of schedule.
In the environment that surrounds our childcare support business, the government has been enhancing the childcare environment
as a measure to tackle the declining birthrate. Meanwhile, the competition to acquire children is intensifying in regions where thedeclining birthrate is accelerating. Accordingly, there is a need for structural reforms for sustainable growth and further earnings
expansion and the development and early monetization of new businesses.
In view of the progress made in the medium-term management plan (from the fiscal year ending March 2024 to 2026), changes
in the external environment, and other factors, we will review consolidated numerical targets using the rolling method. At the sametime, we will continue to work on targets: “Achieve growth and establish a competitive advantage,” “Reform our profit structure,”and “Reform our management base” from the previous fiscal year to further improve and reform our competitive advantage andmanagement foundation with regard to the priority targets of the medium-term management plan.
[Priority Targets of the Medium-Term Management Plan]
The key objectives of the medium-term management plan are to create new service value and establish a competitive advantage
by aggressively developing new businesses for growth, developing infrastructure through M&A, systematization, etc., and building
a solid business foundation through structural reforms and business reforms, and to aim for sustainable growth by resolving social
issues through business.
(1) Achieve growth and establish a competitive advantage
As new businesses for medium-to long-term growth, we will strengthen its staffing and temporary staffing businesses andoverseas businesses, promote aggressive M&A to expand existing businesses and new business domains, expand learning
programs to capture competitive advantages, and promote various differentiation strategies and measures to resolve social issues
that resolve problems faced by parents.
(2) Reform our profit structure
We will improve profitability by reviewing the business structure, eliminating wasteful operations, improving management
efficiency through ICT, and further optimizing staffing. We will also further streamline operations by reforming businessprocesses and introducing systems.
(3) Reform our management base
The key to our business is people. Therefore, we will enhance our personnel education and training structure. At the sametime, we will retain and develop outstanding human resources and improve employee engagement to lead to a change inawareness. Moreover, we will strengthen our human resources strategy and group governance to support sustainable growthand superiority.
For the above reasons, as for the consolidated performance for the next fiscal year, the Company forecasts net sales of 38,528
million yen (up 1.8% year on year), operating income of 4,751 million yen (up 3.6%), ordinary income of 4,778 million yen(up 5.6%), and net income attributable to owners of parent was 3,106 million yen (up 6.0%).
The business forecasts for the fiscal year ending March 2025 do not include events that are not presented in detail at thecurrent planning stage, such as the new measure ("Childcare for All Children System") as a measure to counter the declining
birthrate on a different dimension by the government, and various measures taken by the national and local governments. It
also does not include M&A and plans for overseas businesses that are being actively pursued. We will review and announce thedetails when they are presented.

5

The following is a breakdown of the childcare facilities that the Group has entrusted with the opening of new facilities during
the fiscal year ended March 2024 and has started new operations on April 1, 2024.
(Nursery School)
Appy Azabu
Asc Nishi-kokubunji Nursery School(Apr. 1, 2024)(Apr. 1, 2024)(Childcare Center)
Transition of licensed nursery schools to certified child care centers.
Asc Kozurushinden Childcare Center(Apr. 1, 2024)
Asc Nagamachiminami Childcare Center(Apr. 1, 2024)
Asc Gotenhama Childcare Center(Apr. 1, 2024)
Asc Wani Childcare Center(Apr. 1, 2024)(School Club/Children's House)
Ukima Elementary School Club No.1
Ukima Elementary School Club No.2
Ukima Elementary School Club No.3
Ukima Elementary School Club No.4
Koto Kids’Club Edagawa
Negishi After School Kids’ Club
Negishi Kids’Club
Matsuba Elementary School After School Kids’ Club
Nezu Chidcare Room
Mejirodai Chidcare Room No.2
Ichi-sho School Club A
Ichi-sho School Club B
Kitano-sho School Club A
Kitano-sho School Club B
Kitano-sho School Club Annex
Nezu Children’s House
Mejirodai Children’s House No.2

(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Apr. 1, 2024)(Community Center)
Nezu Community Center
Majirodai Community Center(Apr. 1, 2024)(Apr. 1, 2024)(Bilingual Nursery School)
The Company changed licensed nursery schools and Tokyo licensed nursery schools to bilingual nursery schools, which isstaffed by native English-speaking teachers.
Asc Bilingual Nursery School Ningyocho Eki-mae (formerly Asc Ningyocho Eki-mae Nursery School) (Apr. 1, 2024)
Asc Bilingual Nursery School Yakumo (formerly Asc Yakumo Nursery School)(Apr. 1, 2024)
Asc Bilingual Nursery School Takatsu (formerly Asc Takatsu Nursery School)(Apr. 1, 2024)
Asc Bilingual Nursery School Kamikodanaka (formerly Asc Kamikodanaka Nursery School)(Apr. 1, 2024)
Asc Bilingual Nursery School Mukaigawara (formerly Asc Mukaigawara Nursery School)(Apr. 1, 2024)(Other Contracted Business)
Shibuya-ku After School Club "Club Business Coordination" Services(April 1, 2024)*1: As of the end of March 2024, Asc Bilingual Nursery School Eifuku, a Tokyo Metropolitan Government certified nursery school, was closed. In
addition, following school clubs were withdrawn as of the end of March 2024 due to the expiration of the contract: "Predy Toyomi", "Taisho
Elementary School After School Kids’ Club", "Wakuwaku Yanagida Hiroba/Yanagida Midori Club No.1", and "Wakuwaku Yanagida
Hiroba/Yanagida Midori Club No.2".
*2: On April 1, 2024, "Asc Nishi-kokubunji Nursery School" was transitioned from a Tokyo-certified nursery school to a licensed nursery school.

62. Basic Policies regarding the Selection of Accounting Standards
Our Group produces financial statements based on the Japanese standard, while taking into consideration the comparabilities ofvarious financial statement terms as well as those of various companies. Incidentally, the application of international accounting
standards will be appropriately enforced, in consideration of various situations inside and outside Japan.

7

3. [Consolidated Financial Statements and Major Notes](1) [Consolidated Balance Sheet](Thousand yen)Previous Fiscal Year
(March 31, 2023)

Current Fiscal Year
(March 31, 2024)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

19,330,865
60,19820,944,481
117,374

Inventories
Accounts receivable - other55,476
3,263,596

46,9553,453,371

904,246-1,291

812,495-411

23,613,092

25,374,267

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

12,024,967

12,148,433

Accumulated depreciation and impairment-7,640,405-8,131,104

Buildings and structures, net

4,384,561

4,017,329

Machinery, equipment and vehicles

203

4,442

Accumulated depreciation-150-1,30553

3,137

Machinery, equipment and vehicles, net
Tools, furniture and fixtures

1,340,178

1,503,559

Accumulated depreciation and impairment-869,662-987,460

Tools, furniture and fixtures, net

470,516

516,099

Land
Construction in progress

129,529330

129,529-

Total tangible fixed assets

4,984,990

4,666,095

Intangible assets
Goodwill

106,350

75,964

Others

39,68929,706

Total intangible assets

146,040

105,671

Investment securities
Long-term loans receivable

406,875
2,804,871

473,5972,579,732

Guarantee deposits
Deferred tax assets

1,819,824
1,458,611

1,814,755
1,489,173

OthersAllowance for doubtful accounts

465,177-4,727392,729-6,510Total investments and other assets

6,950,632

6,743,477

12,081,664

11,515,244

35,694,756

36,889,511

Investments and other assets

Total fixed assets
Total assets8

(Thousand yen)Previous Fiscal Year
(March 31, 2023)

Current Fiscal Year
(March 31, 2024)

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

186,091
3,654,742

196,679
3,657,330

Accounts payable – other
Income taxes payable

1,681,700
433,452

2,893,907
1,093,442

Accrued consumption taxes
Reserve for bonuses

92,647866,100

65,639891,300

Asset retirement obligation
Others

3,087
1,376,561

6,560
1,604,392

Total current liabilities

8,294,383

10,409,252

Long-term debt
Retirement benefit liability

12,226,111
970,699

8,761,017
1,010,833

Asset retirement obligation
Others619,549-

597,4392,850

13,816,359

10,372,140

22,110,742

20,781,392

Shareholders’ equity
Capital1,603,955

1,603,955

Capital surplus
Retained earnings

1,455,989
11,422,289

1,482,693
13,840,537

Fixed liabilities

Total fixed liabilities
Total liabilities
Net assets

Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-forsecurities
Deferred gains or losses on ledgessaleRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

9-784,199-724,381

13,698,034

16,202,804-111,798-94,396

1,143

1,638

-3,365-1,926-114,020-94,684

13,584,013

16,108,119

35,694,756

36,889,511

(2) [Consolidated Statement of Income and Consolidated Statement of Comprehensive Income][Consolidated Statement of Income]Net sales
Cost of sales

Previous Fiscal Year
(Apr. 1, 2022
- March 31, 2023)
35,507,855
29,110,590(Thousand yen)
Current Fiscal Year
(Apr. 1, 2023
- March 31, 2024)
37,856,480
30,664,603

Gross profit

6,397,264

7,191,877

Selling, general and administrative expenses

2,729,999

2,607,056

Operating income

3,667,265

4,584,821

Non-operating income
Interest income

77,75074,208Others83,75021,957

Total non-operating income

161,500

96,165Interest expenses
Arrangement fee

70,588-67,53270,000

Others12,967

19,950Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets

83,555

157,483

3,745,210

4,523,503

355,993-

Gain on reversal of asset retirement obligations
Gain on negative goodwill

20,548-18,3406,803

Extraordinary income

376,542

25,143

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

3,189

909
1,324

Impairment loss (on facilities)

55,46740,612

Total extraordinary loss

58,65742,845

Income before income taxes and others

4,063,095

4,505,801

Corporate, inhabitant and enterprise taxes
Income taxes-deferred

1,234,746
129,858

1,615,851-39,207

Total income tax

1,364,605

1,576,643

Net income

2,698,489

2,929,157

Net income attributable to owners of parent

2,698,489

2,929,157

Extraordinary loss

10

[Consolidated Statement of Comprehensive Income]Net income
Total accumulated other comprehensive income

Previous Fiscal Year
(Apr. 1, 2022
- March 31, 2023)
2,698,489(Thousand yen)
Current Fiscal Year
(Apr. 1, 2023
- March 31, 2024)
2,929,157-61,879
3,677

17,401
495

Valuation difference on available-for- sale securities
Deferred gains or losses on ledges
Remeasurements of defined benefit plans

32,122

1,438

Total other comprehensive income-26,079

19,335Comprehensive income

2,672,409

2,948,493

BreakdownComprehensive income attributable to owners of parent

2,672,409

2,948,493

11

(3) Consolidated Statements of Changes in Shareholders’ Equity
Previous Fiscal Year (April 1, 2022 – March 31, 2023)(Thousand yen)
Shareholders’ equity
CapitalBalance at the beginningof current period
Changes of items during
the period

Capital surplus

1,603,955

Retained earnings

1,449,544

9,117,409

Dividends from surplus
Net income attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
stock
Restricted stockcompensation
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

Treasury stock-107,515

Total shareholders’equity12,063,393-393,609-393,609

2,698,489

2,698,489-711,577-711,577

6,935

30,862

37,798

-491

4,031

3,540

-

6,444

2,304,879-676,683

1,634,640

1,603,955

1,455,989

11,422,289-784,199

13,698,034

Accumulated other comprehensive income
Valuation difference on
available-for- salesecurities
Balance at the beginningof current period
Changes of items during
the period-49,918

Deferred gains orlosses on ledges

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income-35,488-87,940-2,533

Dividends from surplus
Net income attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
stock
Restricted stockcompensation
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

Total net assets

11,975,452-393,609
2,698,489-711,577
37,7983,540-61,879

3,677

32,122-26,079-26,079-61,879

3,677

32,122-26,079

1,608,561-111,798

1,143-3,365-114,020

13,584,013

12

Current Fiscal Year (April 1, 2023 – March 31, 2024)(Thousand yen)
Shareholders’ equity
CapitalBalance at the beginningof current period
Changes of items during
the period

Capital surplus

1,603,955

Retained earnings

1,455,989

11,422,289

Dividends from surplus
Net income attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
stock
Restricted stockcompensation
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

Treasury stock-784,199

Total shareholders’equity13,698,034-510,909-510,909

2,929,157

2,929,157-

24,72749,45874,186

1,976

10,35812,335-26,704

2,418,248

59,8172,504,770

1,603,955

1,482,693

13,840,537-724,381

16,202,804

Accumulated other comprehensive income
Valuation difference on
Deferred gains or losses
available-for- saleon ledges
securities
Balance at the beginningof current period
Changes of items during
the period-111,798

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income-3,365-114,020

1,143

Dividends from surplus
Net income attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
stock
Restricted stockcompensation
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

Total net assets

13,584,013-510,909
2,929,157
74,186
12,335
17,401495

1,438

19,335

19,335

17,401495

1,438

19,3352,524,105-94,396

1,638-1,926-94,684

16,108,119

13

(4) Consolidated Statement of Cash Flows(Thousand yen)
Current Fiscal Year
(Apr. 1, 2023
- March 31, 2024)

Previous Fiscal Year
(Apr. 1, 2022
- March 31, 2023)
Net cash provided by (used in) operating activities
Income before income taxes and others

4,063,095

4,505,801

Depreciation and amortization
Impairment loss

737,366
55,467

707,376
40,612

Amortization of goodwill
Gain on negative goodwill

30,385-30,385-6,803

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in liabilities relating to retirement
benefits
Share-based payment expenses-1,871-40,320903
25,20079,35342,327

2,655

26,084Gain on reversal of asset retirement obligations
Arrangement fee-20,548--18,340
70,000Interest and dividends income
Interest expenses-77,750
70,588-74,208
67,532

Loss (gain) on sales of fixed assets
Loss on retirement of fixed assets
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories-355,993
3,189

909
1,324

8,452

-34,482

8,424

8,520

Decrease (increase) in accounts receivable - other
Decrease (increase) in accrued consumption taxes-554,790-13,083-185,850-4,753

Decrease (increase) in notes and accounts payableDecrease (increase) in accounts payable - other andaccrued expenses
Increase (decrease) in accrued consumption taxes

20,538

10,587

251,817

1,246,509-51,244-30,742

Increase (decrease) in advances received
Decrease (increase) in other current assets-20,592-78,780-130,014
1,555

Decrease (increase) in other fixed assets
Increase (decrease) in other current liabilities

116,786
15,59070,913
149,567

Increase (decrease) in other fixed liabilities

2,842

2,790

4,251,578

6,523,706

187-70,960150-65,072

SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund-1,445,567-860,354

Net cash provided by (used in) operating activities

2,735,238

5,598,429

14

(Thousand yen)
Current Fiscal Year
(Apr. 1, 2023
- March 31, 2024)

Previous Fiscal Year
(Apr. 1, 2022
- March 31, 2023)
Net cash provided by (used in) investing activities
Proceeds from sales of property, plant and equipment

996,251--869,848-13,342-291,336-2,032

Proceeds from collection of guarantee deposits
Payments for guarantee deposits

47,435-8,770-10,087

Payment of premiumCollection of long-term loans receivable

261,229-572
281,649

Payments of long-term loans receivable
Proceeds from subsidy income
Proceeds from investments in subsidiaries resulting inchange in scope of consolidation
Others-45,738
138,530

11,386-

7,677-94,087-3,087

Net cash provided by (used in) investing activities

411,659-6,401

Purchase of property, plant and equipment
Purchase of intangible assets

Net cash provided by (used in) financing activities
Proceeds from long-term loans payable

3,450,000

200,000

Repayments of long-term loans payable
Payment of arrangement fee-3,498,904--3,674,742-70,000

Proceeds from disposal of treasury shares
Proceeds from disposal of treasury shares

37,798-711,577

74,186-

Cash dividends paid

-390,017-507,856

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents-1,112,700-3,978,411--

2,034,197

1,613,615

Cash and cash equivalents at beginning of period

17,296,668

19,330,865

Cash and cash equivalents at end of period

19,330,865

20,944,481

15

(5) Notes on the consolidated financial statements(Notes on going concern assumption)
None applicable.
(Changes in presentation)(Consolidated Statements of Income)"Employment adjustment subsidy" under "Non-operating income," which was presented separately in the previous fiscal year,
has been included in "Other" from the current fiscal year due to its immateriality. To reflect this change in presentation, theconsolidated financial statements for the previous fiscal year have been reclassified.
As a result, "Employment adjustment subsidy" of 53,342 thousand yen and "Other" of 30,407 thousand yen, which were
presented in "Non-operating income" in the consolidated statement of income for the previous fiscal year, are reclassified as"Other" of 83,750 thousand yen.
“Gain on reversal of asset retirement obligations," which was included in "Other" under "Extraordinary income" in the previous
consolidated fiscal year, has become significant in terms of amount and is therefore separately presented in the current
consolidated fiscal year. To reflect this change in presentation, the consolidated financial statements for the previous fiscal year
have been reclassified.
As a result, 20,548 thousand yen presented as "Other" under "Extraordinary income" in the consolidated statement of income
for the previous fiscal year has been reclassified as "Gain on reversal of asset retirement obligations" of 20,548 thousand yen.
(Consolidated Statements of Cash Flows)“Gain on reversal of asset retirement obligations," which was included in "Increase (decrease) in other current liabilities" in"Net cash provided by (used in) operating activities" in the previous fiscal year, is presented separately in the current fiscal year
due to its increased importance. To reflect this change in presentation, the consolidated financial statements for the previous fiscal
year have been reclassified.
As a result, "Increase (decrease) in other current liabilities" of -4,958 thousand yen shown in "Net cash provided by (used in)operating activities" in the consolidated statements of cash flows for the previous fiscal year has been reclassified as "Gain on
reversal of asset retirement obligations" of -20,548 thousand yen and "Increase (decrease) in other current liabilities" of 15,590
thousand yen.
(Segment Information)
As our group operates within one single segment (nursery service), we have omitted the descriptions as such.

16

(Per-stock Information)
Previous Fiscal Year
(Apr. 1, 2022
- March 31, 2023)

Current Fiscal Year
(Apr. 1, 2023
- March 31, 2024)

Net assets per share

159.53 yen

188.71 yen

Net income per share

31.18 yen34.38 yen

(Note) 1. Diluted net income per share is omitted as there are no dilutive shares.
2. The basis for calculating net income per share is as follows:
Previous Fiscal Year
(Apr. 1, 2022
- March 31, 2023)
Net income attributable to ownersof parent (thousand yen)
Net income not attributable tocommon shareholders (thousandyen)
Net income attributable to ownersof parent related to common shares(thousand yen)
Average number of common stockduring period (shares)(Significant events after the reporting period)
None applicable.

17

Current Fiscal Year
(Apr. 1, 2023
- March 31, 2024

2,698,489

2,929,157--

2,698,489

2,929,157

86,537,843

85,189,303