Jafco Group Co., Ltd. · TSE:8595
Jafco — Q1 FY March 2027 Earnings Presentation
38 slides from Jafco's earnings presentation, August 2026
Slide 1: First Quarter FY March 2027 Earnings Presentation
First Quarter FY March 2027 Earnings Presentation SUMMARY OF FINANCIAL RESULTS
Slide 2: Contents
Contents • Executive Summary 3 • Section 1 Financial Results 4 – 21 • Section 2 Fund Management Status 22 – 26 • Section 3 1Q Achievements and Initiatives 27 – 29 • Appendix 30 – 38 The contents of this document are based on materials available at the time of its compilation and no guarantee can be
Slide 3: Summary of 1Q FY March 2027
Summary of 1Q FY March 2027 • The TSE Growth Market and IPO market continue to be at low levels Changes in business • There were 7 IPOs in the TSE Growth Market from April to June (5 in the same period last year) environment and impact on portfolio companies • Continue close monitoring of political
Slide 4: Section 1 Financial Results
Section 1 Financial Results JAFCO has transitioned to non-consolidated financial statements starting from the third quarter of the fiscal year ended March 31, 2026. As such, figures for prior periods are also presented on a standalone basis or as domestic figures excluding overseas funds. SUMMARY OF
Slide 5: (Reference) Changes Resulting from Transfer of Overseas Subsidiaries
(Reference) Changes Resulting from Transfer of Overseas Subsidiaries Prior to 3Q of FY March 2026 3Q of FY March 2026 onward Operational Japan, Asia, and the US Focus all resources on Japan (domestic) hubs *Decided to focus on domestic investment as of Apr. 23, ‘25 Completed transfer of JIAP (Oct. 3
Slide 6: (Reference) Change in Profit/Loss Accounting from Transition to Non-Consolidated Statements
(Reference) Change in Profit/Loss Accounting from Transition to Non-Consolidated Financial Statements New financial Previous financial statements statements Consolidated Non-consolidated Non-consolidated Japan ○ ○ ○ Asia ○ Capital gains ○ Until Sep. ‘25 - USA ○ ○ - Until Dec. ‘25 Japan ○ ○ ○ Income
Slide 7: Financial Performance (Non-Consolidated)
Financial Performance (Non-Consolidated) Year ended 1Q ended 1Q ended Annualized March 31, 2026 A June 30, 2025 June 30, 2026 comparison 2025.04-2026.03 2025.04-2025.06 2026.04-2026.06 [B×4]/A [¥ billion] Total net sales 21.6 7.0 3.1 57% Gross profit 9.6 3.7 1.6 66% Capital gains 8.0 3.3 1.2 61% Dom
Slide 8: (Reference) Breakdown of Standalone Figures
(Reference) Breakdown of Standalone Figures *All quarterly figures are cumulative. 26.3 27.3 21.3 22.3 23.3 24.3 25.3 1Q 2Q 3Q 4Q 1Q [¥ billion] Capital gains 10.7 12.7 4.0 7.8 12.5 3.3 4.5 5.1 8.0 1.2 Domestic 9.5 12.5 4.4 8.6 10.4 3.3 4.7 6.5 9.5 Income from fund management 4.7 6.5 3.7 4.4 4.8 0.9
Slide 9: Profit and SG&A Expenses (Domestic Only)
Profit and SG&A Expenses (Domestic Only; Overseas Funds Excluded) Management fees are at a level of roughly covering SG&A expenses (excluding business tax). With commencement of SV8 Series investment, contribution to management fees has started. 18.9 3 mos. [¥ billion] 15.0 13.5 12.9 13.0 12.5 Incom
Slide 10: JAFCO's Primary Revenue Structure
JAFCO’s Primary Revenue Structure Fees from investors’ capital commitments for the operation of funds ② Success fees ③ Capital gains on Capital commitments from external ① Fund management JAFCO’s interests ① Fund management fees investors* × Approx. 2% per annum fees ② Success fees** Fund management
Slide 11: Profit Breakdown 1) Fund Management Fees
Profit Breakdown 1) Fund Management Fees (Domestic Only; Overseas Funds Excluded) With the commencement of SV8 Series investment, fund management fees have started to accrue. Increase the fund size in line with market expansion, increase the external funding ratio, and accumulate fund management fee
Slide 12: Profit Breakdown 2) Success Fees
Profit Breakdown 2) Success Fees (Domestic Only; Overseas Funds Excluded) Success fees amounted to ¥0.1 billion. Success fees are influenced by the exit environment; They are accrued from funds under operation whose distributions have exceeded capital commitments.*1 Amount of Success Fees Image of F
Slide 13: Profit Breakdown 3) Capital Gains and MOIC
Profit Breakdown 3) Capital Gains and MOIC (Domestic Only; Overseas Funds Excluded) Total capital gains amounted to ¥1.2 billion with a MOIC of 2.4x 1 IPO (SQUEEZE Inc.) from the venture portfolio and 1 major M&A exit (GCU Co., Ltd.) from the buyout portfolio 14.0 12.5 6.0 5.5 12.0 10.4 5.0 3 mos. 9
Slide 14: Balance of Unlisted Operational Investment Securities
Balance of Unlisted Operational Investment Securities (Domestic Only; Overseas Funds Excluded) With a balance of unlisted operational investment securities (acquisition cost) of ¥46.1 billion, fair value valuation is ¥52.5 billion. The following is a simulation of capital gains and earnings in the i
Slide 15: Additions to Investment Loss Reserves
Additions to Investment Loss Reserves (Domestic Only; Overseas Funds Excluded) Balance of [¥ billion] investment loss reserves 20.5% 19.6% 19.3% Additions to 18.2% 17.4% 16.8% investment loss reserves 13.5% Reserve ratio 10.7 8.8 8.9 9.5 7.8 7.7 6.4 5.4 [¥ billion] 2.6 2.3 0.6 0.5 1.5 0.7 21.03 22.0
Slide 16: (Ref.) Fair Value Valuation and Valuation Multiple of Unlisted Holdings
(Ref.) Fair Value Valuation and Valuation Multiple of Unlisted Holdings (Domestic Only; Overseas Funds Excluded) （As of the end of June 2026） Valuation of unlisted operational Valuation multiple in holding period and investment securities assumption until exit Valuation multiple by holding period (Y
Slide 17: Asset Composition and Fund Assets Under Management
JAFCO Group Asset Composition and Fund Assets Under Management Domestic fund assets under Asset composition management and JAFCO’s interests [¥ billion] [¥ billion] Listed operational investment securities Operational investment securities 68.1 （market value) 25.1 Listed 21.9 Paid-in assets Invest-
Slide 18: Cash and Deposits
Cash and Deposits Net available cash after deducting uncalled commitments to funds, CBs, and long-term interest-bearing debts stood at ¥10.8 billion. FY March 2027 1Q [¥ billion] Cash and deposits 60.4 A Fixed-purpose cash and deposits 10.7 B Cash in funds (JAFCO's interests) 3.2 Forecast dividend p
Slide 19: Net assets
Net assets [¥ billion] FY March 2026 FY March 2027 Change Total 1Q Net assets 134.1 133.9 (0.2) Capital stock/capital surplus 66.1 66.1 - Retained earnings 53.3 50.4 (2.9) Treasury shares (4.0) (4.0) (0.0) Total shareholders' equity 115.4 112.4 (2.9) Valuation difference, etc. 18.7 21.4 2.7 Net asse
Slide 20: Status of Interests in Overseas Funds
Status of Interests in Overseas Funds *1 Interests in overseas funds (JAFCO’s interests in existing funds operated by the transferred Asian and US companies) are recorded to investment securities. Operating gain/loss*2 are recorded to non-operating gain/loss. Capital Gains (Sales – Investment Costs)
Slide 21: Shareholder Returns
Shareholder Returns While the DOE-based dividend is calculated at ¥132, our projected (minimum) dividend for FY March 2027 is ¥133 (¥66.5 interim and ¥66.5 year-end), maintaining the previous fiscal year’s dividend level 285.7％ 266.5% Dividend Review policypolicy of dividend FY March 2026 onward Pay
Slide 22: Section 2 Fund Management Status
Section 2 Fund Management Status SUMMARY OF FINANCIAL RESULTS 22
Slide 23: Investment Structure
Investment Structure Investment and business development teams collaborate to enhance portfolio company value and achieve exits Venture Investment Team Buyout Investment Team 42 members 22 members Business Development Team 15 members Balance of unlisted holdings: ¥152.6 billion / 192 companies (Vent
Slide 24: Fund Management Status: 1) Balance of Unlisted Holdings
Fund Management Status: 1) Balance of Unlisted Holdings (Domestic Only; Overseas Funds Excluded) Balance of 175.2 Fair value (ref.) unlisted holdings 152.0 152.7 144.0 130.4 134.2 24.5 26.1 19.0 111.2 19.8 [¥ billion] 23.3 [Cos.] 99.2 183 192 192 13.7 176 16.5 167 151 142 Markdowns 125.0 127.6 126.5
Slide 25: Fund Management Status: 2) Investment Activity
Fund Management Status: 2) Investment Activity 30 27.9 28.0 23.2 3 mos. 25 22.6 21.5 11.0 3.9 12.4 19.4 20 5.8 [¥ billion] 9.0 6.0 15 10 19.3 15.5 16.8 17.0 Buyout 12.5 13.4 5 3.7 VC 3.7 0 21.03 22.03 23.03 24.03 25.03 26.03 26.06 Note: Figures are rounded to the nearest decimal place. SUMMARY OF FI
Slide 26: Fund Management Status: 3) New Venture Investments
Fund Management Status: 3) New Venture Investments Made new investments in 4 startup companies in Japan totaling ¥3.2 billion 1 25.0% 3 mos. 19.8% 0.8 20.0% [¥ billion] 15.9% 15.5% 14.8% [Stake] 14.8% 0.6 12.6% 15.0% 11.5% 0.4 0.79 10.0% Average investment amount 0.49 0.2 0.40 0.35 0.41 0.41 0.40 5.
Slide 27: Section 3 1Q Achievements and Initiatives
Section 3 1Q Achievements and Initiatives SUMMARY OF FINANCIAL RESULTS 27
Slide 28: 1Q Achievements and Initiatives 1) New Investments
1Q Achievements and Initiatives 1) New Investments We made 4 new venture investments Venture investment DubGuild Inc. ATOM Inc. Star Signal Solutions, Inc. Creation and sale of catalog data for Development of LSLM (large spoken Research, development, space debris and satellites, and Line of language
Slide 29: 1Q Achievements and Initiatives 2) Major Exits from April to June
1Q Achievements and Initiatives 2) Major Exits from April to June In the first quarter, there was one IPO from our venture portfolio and one M&A exit from our buyout portfolio IPO M&A Venture Buyout SQUEEZE Inc. GCU Co., Ltd. Line of Hotel operations, system development and provision, Provides a wid
Slide 30: Appendix
Appendix SUMMARY OF FINANCIAL RESULTS 30
Slide 31: VC-Backed / JAFCO-Backed IPOs
VC-Backed / JAFCO-Backed IPOs（VC stake of 10% or more） Left: VC-Backed IPOs in Japan Right: Of which, JAFCO-Backed IPOs 35 33 31 28 3 mos. 10 26 [Cos.] 10 19 8 First price-based market cap. 7 10 \20B or more 7 5 6 13 6 5 \10B-\20B 10 5 4 5 4 15 14 14 14 3 3 4 3 1 1 4 1 1 1 Less than \10B 4 4 1 5 1 1
Slide 32: Multiple on Invested Capital (MOIC): JAFCO's Interests
Multiple on Invested Capital (MOIC): JAFCO’s Interests (Domestic Only; Overseas Funds Excluded) Revenue from operational investment securities Cost of operational investment securities * ** Gross MOIC MOIC after mark-down 3 mos. [¥ billion] 20 9.1 [times] 10.0 9.0 8.0 15 5.7 7.0 Average MOIC *** 5.5
Slide 33: Basic Policy for Enhancing Corporate Value
Basic Policy for Enhancing Corporate Value By focusing on domestic investment, the likelihood of achieving our target ROE of 15–20% will increase. We aim to meet our targets by increasing the size of new domestic funds and external capital commitments in line with market growth while continuing effo
Slide 34: Share Price Index and Shareholder Returns
Share Price Index and Shareholder Returns Non-consolidated Consolidated figures figures [Consolidated] 14.03 15.03 16.03 17.03 18.03 19.03 20.03 21.03 22.03 23.03 24.03 25.03 26.03 Term-end share price (¥) * 1,543.33 1,490.00 1,153.33 1,246.67 1,680.00 1,321.67 938.67 2,193.33 1,875.00 1,893.00 1,88
Slide 35: Fund Performance
Fund Performance As of June 30, 2026 [Preliminary basis] Capital commitments Fair value valuation Valuation reflecting markdowns only (AUM) Paid-in (Figs. for SV4/SV5/SV6 are reference values) Distribution Name of Fund Establishment Maturity Status contribution (D) Remaining JAFCO’s (PI) Remaining N
Slide 36: Fund Performance of Fully Liquidated Funds
Fund Performance of Fully Liquidated Funds (¥Billion) Against 1 in capital comimtments Multiple Net IRR Capital commitments Domestic Fund Establishment End of term Paid-in Capital Total (%) (Total operating funds) D/PI (PI) Distribution (D) JAFCO No.1 1982.04 1993.12 1.6 1.00 3.26 3.26 16.7 JAFCO No
Slide 37: Breakdown of Fund Investors
Breakdown of Fund Investors Financial JAFCO institutions Financial 20% 18% institutions JAFCO 34% Financial Pension funds, JAFCO SV4 JAFCO 43% SV5 32% SV6 institutions investment trusts SV7 Financial institutions 50% ¥60.0B ¥75.0B ¥80.0B 45% etc. ¥97.8B 46% [¥40.0B] [¥50.0B] [¥80.0B] 6% [¥97.8B] Inv
Slide 38: Fees and Risks Pertaining to Investment Partnerships
Fees and Risks Pertaining to Investment Partnerships [Fees] Investors of the investment partnerships (the “Partnerships”) managed by JAFCO Group Co., Ltd. (“JAFCO”) will bear the actual organizational expenses up to 0.22% (0.2% before tax) of the commitment amount or the contribution amount as the e