Summary of Business Results for the Fiscal Year Ended March 31, 2021
[Japan GAAP] (Consolidated)
May 13, 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 annual shareholders' meeting: June 23, 2021 | Expected starting date of dividend payment: June 24, 2021 | |||||||||||||||||||||||||||||
Expected date of filing of annual securities report: June 24, 2021 | ||||||||||||||||||||||||||||||
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 2021 | ||||||||||||||||||||||||||||||
(April 1, 2020 through March 31, 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 | % | |||||||||||||||||||||||
Year ended Mar. 2021 | 32,911 | 3.8 | 2,268 | 47.4 | 2,947 | 47.1 | 537 | -52.1 | ||||||||||||||||||||||
Year ended Mar. 2020 | 31,719 | 8.3 | 1,538 | 0.5 | 2,003 | 4.3 | 1,122 | 4.8 | ||||||||||||||||||||||
(Note) Comprehensive income: | ||||||||||||||||||||||||||||||
Year ended March 2021: 712 million yen (-31.3%) | ||||||||||||||||||||||||||||||
Year ended March 2020: 1,036 million yen (9.0%) | ||||||||||||||||||||||||||||||
Net income | Diluted net income | Return on | Ratio of ordinary | Ratio of operating | ||||||||||||||||||||||||||
income to total | ||||||||||||||||||||||||||||||
per share | per share | equity | income to net sales | |||||||||||||||||||||||||||
assets | ||||||||||||||||||||||||||||||
Yen | Yen | % | % | % | ||||||||||||||||||||||||||
Year ended Mar. 2021 | 6.15 | - | 5.5 | 10.6 | 6.9 | |||||||||||||||||||||||||
Year ended Mar. 2020 | 12.81 | - | 12.1 | 7.4 | 4.9 | |||||||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||||||||||||
Total assets | Net assets | Shareholders' equity | Net assets per | |||||||||||||||||||||||||||
ratio | share | |||||||||||||||||||||||||||||
Million yen | Million yen | % | Yen | |||||||||||||||||||||||||||
As of Mar. 31, 2021 | 29,740 | 10,007 | 33.7 | 114.42 | ||||||||||||||||||||||||||
As of Mar. 31, 2020 | 26,122 | 9,636 | 36.9 | 110.17 | ||||||||||||||||||||||||||
(Reference) Shareholders' equity: | ||||||||||||||||||||||||||||||
As of March 31, 2021: 10,007 million yen | ||||||||||||||||||||||||||||||
As of March 31, 2020: 9,636 million yen | ||||||||||||||||||||||||||||||
(3) Consolidated results of cash flows | ||||||||||||||||||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |||||||||||||||||||||||||||
operating activities | investing activities | financing activities | at the end of period | |||||||||||||||||||||||||||
Million yen | Million | yen | Million yen | Million yen | ||||||||||||||||||||||||||
Year ended Mar. 2021 | 2,469 | 190 | 2,155 | 11,020 | ||||||||||||||||||||||||||
Year ended Mar. 2020 | 2,320 | 418 | -3,349 | 6,206 | ||||||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||||||||
Annual dividend | Total | Dividend | Rate of total | |||||||||||||||||||||||||||
dividend | payout ratio | dividend to | ||||||||||||||||||||||||||||
End of | End of | End of | Year-end | Total | ||||||||||||||||||||||||||
(Total) | (Consolidated) | net assets | ||||||||||||||||||||||||||||
1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
(Consolidated) | ||||||||||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||||||||||||||||||||||
Year ended Mar. 2020 | - | 0.00 | - | 3.90 | 3.90 | 341 | 30.4 | 3.7 | ||||||||||||||||||||||
Year ended Mar. 2021 | - | 0.00 | - | 3.90 | 3.90 | 341 | 63.4 | 3.5 | ||||||||||||||||||||||
Year ending Mar. 2022 | - | 0.00 | - | 4.50 | 4.50 | 27.1 | ||||||||||||||||||||||||
(forecast) | ||||||||||||||||||||||||||||||
3.Forecast of consolidated business results for the fiscal year ending March 2022 | ||||||||||||||||||||||||||||||
(April 1, 2021 through March 31, 2022) | (% change from the previous corresponding period) | |||||||||||||||||||||||||||||
Net sales | Operating income | Ordinary income | Net income attributable | Net income | ||||||||||||||||||||||||||
to owners of parent | per share | |||||||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||||||||||||||||||||
Year ending Mar. 2022 | 33,200 | 0.9 | 1,800 | -20.6 | 2,300 | -22.0 | 1,450 | 169.7 | 16.58 |
*Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): 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)
- Number of shares outstanding at the end of period (treasury stock included)
As of March 31, 2021 | 87,849,400 shares |
As of March 31, 2020 | 87,849,400 shares |
- Treasury stock at the end of period:
As of March 31, 2021 | 380,707 shares |
As of March 31, 2020 | 380,707 shares |
- Average number of stock during period
Year ended March 31, 2021 | 87,468,693 shares |
Year ended March 31, 2020 | 87,649,993 shares |
- None
- None
- None
- None
(Note) The number of treasury stock deducted for the calculation of the number of treasury stock at the end of period and the average 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)".
(Reference) Summary of non-consolidated business results
1. Non-consolidated business results for the fiscal year ended March 2021 (April 1, 2020 through March 31, 2021)
(1) Non-consolidated results of operations | (% change from the previous corresponding period) | |||||||||
Net sales | Operating income | Ordinary income | Net income | |||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Year ended Mar. 2021 | 2,570 | 8.9 | 886 | 42.9 | 1,037 | 14.6 | 135 | -81.6 | ||
Year ended Mar. 2020 | 2,360 | 24.4 | 620 | 0.7 | 905 | 36.2 | 734 | 50.5 | ||
Net income | Diluted net income per | |||||||||
per share | share | |||||||||
Yen | Yen | |||||||||
Year ended Mar. 2021 | 1.55 | - | ||||||||
Year ended Mar. 2020 | 8.39 | - | ||||||||
(2) Non-consolidated financial position | ||||||||||
Total assets | Net assets | Shareholders' equity | Net assets per | |||||||
ratio | share | |||||||||
Million yen | Million yen | % | Yen | |||||||
As of Mar. 31, 2021 | 19,496 | 5,129 | 26.3 | 58.65 | ||||||
As of Mar. 31, 2020 | 17,106 | 5,197 | 30.4 | 59.42 |
(Reference) Shareholders' equity:
As of March 31, 2021: 5,129 million yen
As of March 31, 2020: 5,197 million yen
- 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 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 business forecasts, etc., please refer to "1. Qualitative Information on Quarterly Financial Results (4) Future outlook" (Page 6).
・On Wednesday, May 19, 2021, the Company plans to hold results briefing for media members, institutional investors and analysts via a webcast. The Company has suspended its results briefing for individual investors in order to prevent the spread of new coronavirus (COVID-19) infections.
- Table of Contents of the Appendix
- Summary of Operating Results……………………………………………………………………….. 2
- Summary of operating results for the current fiscal year………………………………………….. 2
- Summary of financial condition in the current fiscal year………………………………………… 4
- Summary of cash flow in the current fiscal year…………………………………………………... 5
- Future outlook……………………………………………………………………………………… 6
- Basic Policies regarding the Selection of Accounting Standards……………………………………… 7
- Consolidated Financial Statements and Major Notes………………………………………………….. 8
- Consolidated Balance Sheet………………………………………………………………………… 8
- Consolidated Statement of Income and Consolidated Statement of Comprehensive Income……… 10
- Consolidated Statements of Changes in Shareholders' Equity…………………………………..… 12
- Consolidated Statement of Cash Flows……………………………………………………………. 14
- Notes on the consolidated financial statements……………………………………………………. 16 (Notes on going concern assumption)………………………………………………………………. 16 (Segment Information)………………………………………………………………………………. 16 (Per-stock Information)……………………………………………………………………………… 16 (Significant subsequent events)……………………………………………………………………… 16
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1. Summary of Operating Results
(1) Summary of operating results for the current fiscal year
During the fiscal year under review, the Japanese economy remained challenging due to the impact of COVID-19. Economic activities resumed after the lifting of the State of Emergency declared in April, and there were signs of a recovery in consumer spending. However, the outlook for the future remains extremely challenging due to factors such as an increase in the number of infectious nationwide since November and the redeclaration of the State of Emergency.
Meanwhile, in the child-raising service business, the environment surrounding childcare is rapidly changing. These include an increase in dual-income households, the problem of children on waiting lists in some regions, a continuing shortage of childcare workers, a further acceleration of the declining birth rate society due to a recent sharp drop in the birth 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. The role of child-raising services in society is becoming increasingly important.
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, under the new management structure from June last year, we have adopted the management philosophy of "contributing to the creation of a society where people can smile through our child-raising services." To achieve this, we are promoting to create facilities that would be selected by customers by providing higher-qualitychild-raising services; and we are working on management reform and improvement of the workplace environment to become a company that is trusted by parents and loved by employees.
In the new management structure, we have made efforts under the management reform policies of "improve profitability and efficiency," "improve soundness," and "improve growth potential." In terms of specific initiatives to "improve profitability and efficiency," we have expanded programs in subjects such as English, gymnastics, and eurhythmics to increase the number of children accepted at existing facilities and improved our operational efficiency by optimizing staffing levels. Regarding "improving soundness," to avoid future risks, we have decided to close facilities with deteriorating profitability due to changes in the external environment, and also decided to off-balance the facilities that we have operated by acquiring land and buildings in the past, as a foothold for the development of local childcare support facilities. In addition, we have improved operational efficiency by introducing systems and reviewing business processes, thereby creating a pleasant work environment. We have also introduced a new personnel system with high transparency in evaluations, which has led to a reduction in the turnover rate. As for the "improve growth potential", to accelerate the shift to digital transformation (DX), we introduced an on-line program and formed a business alliance with GAKKEN HOLDINGS CO.,LTD. on January 14, 2021. With this alliance, we decided to introduce early learning programs at child care facilities and began planning and considering new businesses.
As for the new facility openings, the Group has opened a total of 9 facilities during the fiscal year ended March 2021 according to the plan, including 4 nursery schools (4 in Tokyo) and 5 school clubs (5 in Tokyo).
(Nursery school) | |
Asc Senju Nursery School | (Apr. 1, 2020) |
Asc Toneri Ekimae Nursery School | (Apr. 1, 2020) |
Asc Oizumi Gakuen Nursery School | (Apr. 1, 2020) |
Asc Nerima 3-chome Nursery School | (Apr. 1, 2020) |
(School club) | |
Wakuwaku Yanagida Hiroba/Yanagida Midori Club No. 2 | (Apr. 1, 2020) |
Wakuwaku Yon-iwaHiroba/Yon-iwa Elementary School Icho Club No. 2 | (Apr. 1, 2020) |
Chofu City Jindaiji Children's House School Club | (Apr. 1, 2020) |
Mitaka City Minamiura School Club A | (Apr. 1, 2020) |
Mitaka City Yon-sho School Club B | (Apr. 1, 2020) |
*1: As of April 1, 2020, with the opening of Wakuwaku Yanagida Hiroba/Yanagida Midori Club No.2, Wakuwaku Yanagida Hiroba was renamed as Wakuwaku Yanagida Hiroba/Yanagida Midori Club No.1. With the opening of Wakuwaku Yon-iwaHiroba/Yon-iwa Elementary School Icho Club No.2, Wakuwaku Yon-iwa Hiroba was renamed as Wakuwaku Yon-iwaHiroba/Yon-iwa Elementary School Icho Club No.1. With the opening of Mitaka City Yon-sho School Club B, Mitaka City Yon-sho School Club was renamed as Mitaka City Yon-sho School Club A.
*2: As of April 1, 2020, Asc Higashiojima Nursery School, which had been running since April 1, 2008 as Tokyo Licensed Nursery School, was changed into a licensed nursery school; Obu City Kyowahigashi Nursery School, which had been running since April 1, 2010, as public nursery school under private management, was changed into a private facility under private management and is now run as Asc Kyowahigashi Nursery School.
*3: The three private school clubs operated by Amenity Life, Inc. (Elfikids Tsurugamine, Elfikids Futamatagawa, and Elfikids Ryokuentoshi) were closed at the end of March 2020.
*4: COHAS VIETNAM CO.,LTD, which operated the kindergartens in Vietnam, completed the transition to local licensing on October 29, 2020 and transferred it to C2C Global Education Group Co., Ltd.
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*5: Ask Akebono Kaiho Nursery School, a company-led nurcery school, was closed as of December 31, 2020.
As a result, the Group came to have 212 nursery schools, 77 school clubs, 11 children's houses, 1 private school club, making a total of 301 facilities for supporting child-raising at the end of March 2021.
As a result, the Group's consolidated net sales were 32,911 million yen (up 3.8% year on year), operating income was 2,268 million yen (up 47.4% year on year), ordinary income was 2,947 million yen (up 47.1% year on year), and net income attributable to owners of parent was 537 million yen (down 52.1% year on year).
The major factors are as follows:
Net sales increased year on year due to the opening of new facilities and the transition from Tokyo Licensed Nursery School to licensed nursery school. However, as a result of the temporary closures of some facilities due to COVID-19, revenues from school lunch fees and merchandise sales associated with the sale of photographs collected directly from parents decreased, and the number of children accepted fell short the plan, although it has been increasing.
Operating income increased year on year owing to an increase in gross profit and a reduction in selling, general and administrative expenses as a result of efforts to reduce foodstuff costs and other expenses related to school lunches due to the temporal closure of some facilities at the request of local governments, in addition to the above-mentioned factors that contributed to the increase in net sales, despite a decrease in sales associated with the prevention of the spread of COVID-19.
In addition, ordinary income increased year on year thanks to an increase in operating income and increased subsidies associated with an increase in users of the corporate dormitory.
Net income attributable to owners of parent decreased year on year due to following factors: we have decided to close 10 facilities with deteriorating profitability due to changes in the external environment including the status of children on waiting lists in each region (closed 4 Tokyo Licensed Nursery Schools on March 31, 2021, and plan to close 4 Tokyo Licensed Nursery Schools on March 31, 2022; closed 1 company-led nursery school on December 31, 2020 and 1 private school club on March 31, 2021). At the same time, we also decided to off-balance the 10 facilities that we have operated by acquiring land and buildings in the past, as a foothold for the development of local childcare support facilities, with a view to selling them in the future to avoid the risk of holding them. As a result of this change in the use of fixed assets, the book value of fixed assets was reduced to the net selling price, and the amount of the reduction was recorded as an impairment loss. In addition, impairment losses were recorded for nursery schools in some regions that are expected to continue to have negative future operating income due to a decrease in the number of children on waiting lists. With this, we have recorded an extraordinary loss of 2,092 million yen.
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JP-Holdings Inc. published this content on 01 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2021 04:49:00 UTC.