Financial Results for the Fiscal Year ended March 2021/ New Medium-Term Management Plan

© 2021 JP-HOLDINGS, INC.

2

Net sales: increased year-on-year due to the opening of new facilities and an increase in the number of children

accepted in existing facilities

Ordinary income: increased due to cost reductions, despite a slowdown in growth in the number of children accepted

due to the impact of COVID-19.

Net income: decreased due to an extraordinary loss of 2,092 million yen as a result of closures and impairment losses

*1

on facilities with deteriorating profitability caused by environmental changes and the off-balancing of

facilities that we have operated by acquiring land and buildings in the past, as a foothold for the

development of local childcare support facilities.

FY3/20

FY3/21

Rate of Change

Rate of Change

Compared to the Previous Term

Compared to the Forecast

Net sales

31,719

32,911

+1,192

+3.8%

Operating income

1,538

2,268

+729

+47.4%

Ordinary income

2,003

2,947

+944

+47.1%

Net income attributable to

1,122

537

-585

-52.1%

owners of parent

ROE (%)

12.1

5.5

-6.6

-54.5%

Dividend (yen)

3.90

3.90

±0

100.0%

Dividend payout

30.4

63.4

33.0

+108.6%

ratio (%)

Dividend per share (yen)

12.81

6.15

-6.66

-52.0%

*1 : Net income represents "Net income attributable to owners of

parent."

© 2021 JP-HOLDINGS, INC.

4

Increased by 3.8% due to the opening of new facilities and an increase in the

Net sales

number of children accepted, despite the impact of the spread of COVID-19.

396

204

32,911

691

161

31,719

-260

Others

Increase in the

New subsidies

(addition of

number of

nutritionist)

children

Impact of

Increase due

accepted in

existing facilities

COVID-19

to opening of

Decrease in

new facilities

school lunch

and transition

fees, etc.

to licensed

Net

Net

collected

facilities

directly from

sales

sales

parents

FY3/20

FY3/21

© 2021 JP-HOLDINGS, INC.

5