Summary of Business Results for the Second Quarter Ended September 30, 2021
[Japan GAAP] (Consolidated)
November 11, 2021 | |||||||||||
Company | JP-HOLDINGS, INC. | Listed on the TSE 1 | |||||||||
Stock Code | 2749 | 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 filing of quarterly securities report: November 11, 2021 | Expected starting date of dividend payment: - | ||||||||||
Preparation of quarterly supplementary financial document: Yes | |||||||||||
Quarterly results briefing: Yes (for media members, institutional investors, analysts) | |||||||||||
(Rounded down to million yen) | |||||||||||
1. Consolidated business results for the six months ended September 2021 | |||||||||||
(April 1, 2021 through September 30, 2021) | |||||||||||
(1) Consolidated results of operations | (% change from the previous corresponding period) | ||||||||||
Net sales | Operating income | Ordinary income | Net income attributable to | ||||||||
owners of parent | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
Six months ended Sept. 2021 | 16,814 | 3.4 | 1,095 | 16.7 | 1,111 | 16.3 | 708 | 28.6 | |||
Six months ended Sept. 2020 | 16,262 | 3.3 | 938 | 30.3 | 955 | 28.4 | 551 | 6.8 | |||
(Note) Comprehensive income | |||||||||||
Six months ended September 2021: 712 million yen (13.5%) | |||||||||||
Six months ended September 2020: 627 million yen (19.2%) | |||||||||||
Net income | Diluted net income per | ||||||||||
per share | share | ||||||||||
Yen | Yen | ||||||||||
Six months ended Sept. 2021 | 8.11 | - | |||||||||
Six months ended Sept. 2020 | 6.30 | - |
(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 second quarter of the previous fiscal year are based on the indices after this reclassification.
(2) Consolidated financial position
Total assets | Net assets | Shareholders' equity | |||
ratio | |||||
Million yen | Million yen | % | |||
As of Sept. 30, 2021 | 33,051 | 10,378 | 31.4 | ||
As of Mar. 31, 2021 | 29,740 | 10,007 | 33.7 | ||
(Reference) Shareholders' equity: | |||||
As of September 30, 2021: 10,378 million yen | |||||
As of March 31, 2021: 10,007 million yen |
2. Dividends
Annual dividend | ||||||
End of 1Q | End of 2Q | End of 3Q | Year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Year ended Mar. 31, 2021 | - | 0.00 | - | 3.90 | 3.90 | |
Year ending Mar. 31, 2022 | - | 0.00 | ||||
Year ending Mar. 31, 2022 (forecast) | - | 4.50 | 4.50 |
(Note) Revisions to dividend forecast for the current quarter: None
3. Forecast of consolidated business results for the fiscal year ending March 2022 (April 1, 2021 through March 31, 2022)
Net sales | Operating income | Ordinary income | Net income attributable to | Net income | |||||
owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Year ending Mar. 31, 2022 | 33,900 | 1.2 | 2,730 | -4.5 | 2,760 | -6.4 | 1,760 | 227.4 | 20.12 |
(Note 1) Revisions to business forecast for the current quarter: Yes
*Notes
- Changes in significant subsidiaries during the period: None
- Application of accounting procedures specific to preparation of the consolidated quarterly financial statements: None
- Changes in accounting policies, accounting estimates and restatement
① Changes in accounting policies associated with revision of accounting standards: ②Changes in accounting policies other than ①
③Changes in accounting estimates
④Restatement - Shares outstanding (common stock)
① Number of shares outstanding at the end of period (treasury stock included)
As of September 30, 2021 | 87,849,400 shares |
As of March 31, 2021 | 87,849,400 shares |
②Treasury stock at the end of period | |
As of September 30, 2021 | 380,707 shares |
As of March 31, 2021 | 380,707 shares |
③Average number of stock during period (quarterly cumulative period)
Six months ended September 2021 | 87,468,693 shares |
Six months ended September 2020 | 87,468,693 shares |
- Yes
- None
- None
- None
*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. 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).
- The Company plans to hold an online meeting as the financial results briefing for media members, institutional investors and analysts on Friday, November 19, 2021. The briefing for individual investors on financial results has been cancelled in order to prevent the spread of the COVID-19 infections.
- Table of Contents of the Appendix
- Qualitative Information on Quarterly Financial Results ………………………………………… 2
- Results of Operations………………………………………………………………………….. 2
- Financial Position ……………………………………………………………………………… 3
- Consolidated Earnings Forecasts………………………………………………………………………... 4
- Quarterly Consolidated Financial Statements ……………………………………………………. 5
- Quarterly Consolidated Balance Sheets……………………………………………………….. 5
- Quarterly Consolidated Statements of Income and Statements of Comprehensive Income …... 7
- 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
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1. Qualitative Information on Quarterly Financial Results
(1) Results of Operations
In the second quarter of the current fiscal year, the Japanese economy was still affected by the outbreak of COVID-19. Economic activity has continued to be restrained and corporate activities and consumer spending have been weak as the areas covered by the State of Emergency have expanded to 21 prefectures and the period has been extended to the end of September.
However, with the progress of vaccination and the government's policy to normalize the socio-economy by easing various restrictions , a recovery in the economy is expected.
Meanwhile, in the child-raising support business, the environment surrounding childcare is rapidly changing. In addition to the further acceleration of the declining birth rate society due to a recent sharp drop in the birth rate and the expansion of the childcare support, there is a decrease in the number of children on waiting lists because of people refraining from using the facilities due to COVID-19, a continuous shortage of childcare workers, an increase in the female employment rate, and changes in working styles and lifestyles due to the expansion of COVID-19.
In addition, on December 21, 2020, the government announced the "New Child-rearing security Plan", which aims to reduce the number of children 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. Furthermore, the role of childcare in society is expected to become increasingly important, as the government has been actively discussing the establishment of a "Children's Agency", making proposals to increase government spending on childcare policies and promoting measures to create an environment conducive to child-raising.
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 child-raising support services and expand the scope of our business, we are capturing changes in the social environment and have set priority goals of "improve profitability and efficiency," "improve soundness," and "improve growth potential." By effectively allocating and investing management resources, we have built a solid management foundation. Specifically, with digital transformation (DX) as the pillar of reform to respond to changes in the social environment, in terms of "improve profitability and efficiency," we will take these initiatives: improve early learning programs to increase the number of children accepted at existing childcare support facilities as our existing business, developing and introducing new content, introduction of online learning programs (English, gymnastics, eurhythmics and dance) and online facility tours, developing online international exchange programs with overseas child care facilities, etc., 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 have been working to establish a new personnel system, expand our human resource education and training systems and improve operational efficiency through systemization. As for the "improve growth potential," we introduced a new early learning program "Mojikazu Land" through a business alliance with GAKKEN HOLDINGS CO., LTD., and worked to reduce costs and improve on-site operations through joint purchasing, as well as to develop services and products that provide added value.
As for the new facility openings, the Group has opened a total of 11 facilities during the second 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 | (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) |
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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 Asc Ontake Nursery School, which had been running since August 1, 2003 and Asc 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 above, 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 Asc Iidabashi Nursery School, Asc Nishishinjuku Nursery School, Asc Ikebukuro Nursery School, Asc 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.
As a result, the Group came to have 211 nursery schools, 81 school clubs, 11 children's houses, making a total of 303 facilities for supporting child-raising at the end of September 2021.
As a result, the Group's consolidated net sales were 16,814 million yen (up 3.4% year on year), operating income was 1,095 million yen (up 16.7% year on year), ordinary income was 1,111 million yen (up 16.3% year on year), and net income attributable to owners of parent was 708 million yen (up 28.6% year on year). Both sales and profits increased year-on-year.
The major factors are as follows:
Despite a decrease in the number of children accepted at the beginning of the fiscal year since the State of Emergency was declared from April 25 to September 30, 2021 to prevent the spread of COVID-19, net sales increased year-on-year reflecting an increase in the number of children accepted for the full year and the introduction of new facilities. The increase in number of children accepted was attributable to our efforts to create facilities that would be selected by customers, through implementing online facility tours and online learning programs such as English, gymnastics, eurhythmics and dance, as well as introducing a new early learning program even under the COVID-19 crisis.
Operating income increased year-on-year. This was attributable to the introduction of new facilities, increase in sales thanks to the increase in the number of children accepted through above mentioned measures and our efforts to curb expenses and improve profitability by efficient operation through reallocation of personnel at each facility, review of recruitment activities, and reviewing the ordering system for various supplies and equipment, despite an increase in expenses due to special factors, such as an increase in accrued bonuses reflecting a change in the eligible period for bonuses due to the introduction of the new personnel system and an increase in expenses related to the new system introduction.
Ordinary income and net income attributable to owners of parent also increased year-on-year owing to the sharp increase in operating income supported by the efficient management structure established through above-mentioned measures.
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 to the childcare business as a result of investigating and studying the "Accounting Standard for Revenue Recognition: we made the judgment that it would be possible to present the actual status of the business more appropriately if the relevant amounts were recorded in the same category as other subsidies. Due to this change in presentation, reclassifications have been made for the second quarter of the previous fiscal year.
(2) Financial Position
As for the financial position at the end of the second quarter of the current fiscal year, the total assets amounted to 33,051 million yen (up 3,310 million yen from the end of the previous fiscal year).
Current assets totaled 19,276 million yen (up 4,137 million yen), mainly reflecting an increase of 4,869 million yen in cash and deposits, while there were decreases of 518 million yen in accounts receivable, and 123 million yen in inventories.
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JP-Holdings Inc. published this content on 03 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 December 2021 06:31:08 UTC.