Sparx Group Co., Ltd. · TSE:8739

Sparx — Q1 FY2026 Earnings Presentation

42 slides from Sparx's earnings presentation, Jul 31, 2026

1. Slide 1: FY2026 1st Quarter Earnings Presentation

   FY2026 1st Quarter Earnings Presentation (Apr.2026 – Jun.2026) SPARX Group Co., Ltd. July 31, 2026 Securities code: 8739

2. Slide 2: Company Profile

   Company Profile SPARX is an independent investment company. Since our founding, we have pursued the intrinsic value of companies through a disciplined investment approach grounded in our thorough bottom-up approach and the unique investment philosophy. ▍ Corporate Profile President and Group CEO Com

3. Slide 3: Corporate Philosophy

   Corporate Philosophy Pur pose To make the world wealthier, healthier, and happier To be the most trusted and respected V ision investment company in the world Mission Bring ever-better investments to the world Copyright ©SPARX Group Co., Ltd. All Rights Reserved. 3

4. Slide 4: Index

   Index 01. FY2026 Q1 Highlights 02. Financial Results for FY2026 Q1 03. Overview of Four Pillars 04. Appendix Copyright ©SPARX Group Co., Ltd. All Rights Reserved. 4

5. Slide 5: FY2026 Q1 Highlights

   01. FY2026 Q1 Highlights

6. Slide 6: FY2026 Q1 Highlights

   FY2026 Q1 Highlights ▍Overview for financial results Profit attributable to Operating Revenue Operating profit ROE Base Earnings owners of parent 5,606 million 2,754 million 2,900 million 29.1 % 2,312 million (increase by 40.8%) (increase by 80.8%) (increase by 77.6%) (increase by 9.4 Point) (increa

7. Slide 7: AUM and Base Earnings have reached a Record High

   AUM and Base Earnings have reached a Record High AUM reached a record high of JPY 2,612.3 billion at the end of June 2026, bringing JPY 3 trillion in AUM into sight. Moreover, the continuous expansion of AUM since the collapse of Lehman Brothers contributed to the Company's highest-ever Base Earning

8. Slide 8: Execution of Proprietary Investment Initiatives

   Execution of Proprietary Investment Initiatives Executed the first proprietary investment initiative (with an investment capacity of approximately JPY 4.0 billion) ▍ Acquired all shares of M&I Art Co., Ltd. Acquired all shares of M&I Art Co., Ltd., an art appraisal and brokerage company, from Mori B

9. Slide 9: Upward revision to the dividend forecast

   Upward revision to the dividend forecast (increasing the forecast annual dividend per share from 94 yen to 110 yen The forecast annual dividend has been increased by JPY 16 per share. Returning profits to shareholders is positioned as a key management priority, alongside sustainable growth and mid-

10. Slide 10: Financial Results for FY2026 Q1

    02. Financial Results for FY2026 Q1

11. Slide 11: FY2026 Q1 Status of key management indicators

    FY2026 Q1 Status of key management indicators Historical Historical Comparatively High High Historical High Management fee rate Management fees Base Earnings Assets Under Management Performance fees (after deducting commissions) (after deducting commissions) YoY YoY Compared to the end of the +26.2%

12. Slide 12: FY2026 Q1 Trends in AUM

    FY2026 Q1 Trends in AUM AUM in June-end 2026 increased by 31.6% year-on-year, driven in part by the stock market. Average AUM rose by 32.3% year-on-year. monthly AUM trends Average AUM YoY Japanese Equity OneAsia Real Asset Private Equity Rate of +31.6% FY2025 Q1 FY2026 Q1 (unit: billion yen) (unit:

13. Slide 13: FY2026 Q1 Consolidated Financial Highlights

    FY2026 Q1 Consolidated Financial Highlights Operating profit rose by 80.8%, mainly due to increases in management fees and performance fees. Profit attributable to owners of parent increased by 77.6%. FY2025 Q1 FY2026 Q1 YoY change （Unit: million yen） Management fees (before deducting commissions pa

14. Slide 14: FY2026 Q1 Consolidated Balance Sheet

    FY2026 Q1 Consolidated Balance Sheet The industry the Company belongs to is significantly influenced by economic and market conditions. Thus, cash and cash equivalents are efficiently managed at a level equivalent to approximately two years of recurring expenses. While maintaining the current equity

15. Slide 15: Overview of Four Pillars

    03. Overview of Four Pillars

16. Slide 16: Overview of Japanese Equity Investment Strategy

    Overview of Japanese Equity Investment Strategy AUM rose by 14.6% supported by favorable stock market conditions. AUM growth was led by Focus All Cap and Mid & Small Cap strategies. The Long-Short strategy also recorded AUM growth, mainly driven by strong performance. AUM ● Overview of AUM (Unit: 10

17. Slide 17: Overview of OneAsia Investment Strategy

    Overview of OneAsia Investment Strategy Korean equities continued to deliver strong performance. OneAsia AUM increased by 46.4% from the previous fiscal year-end. Overseas institutional investors remained highly interested in Korean equities. Continued marketing activities, with several inquiries re

18. Slide 18: Overview of Real Asset Investment Strategy (1)

    Overview of Real Asset Investment Strategy (1) Promote investing in renewable power generation businesses, including solar power generation, at 348 locations※1 in Japan. The battery-storage business, a new investment area, is steadily expanding. ※ 1 as of June 2026 ● Overview of AUM AUM <1Q> （Unit:

19. Slide 19: Overview of Real Asset Investment Strategy (2)

    Overview of Real Asset Investment Strategy (2) ▍ Participate in Energy Storage Project in Niigata City, Niigata※2 ▍ Renewable energy power generation facilities Participated in a battery energy storage project in Niigata City, Niigata Prefecture. This ※1 p r o j e c t m a r k s S P A R X' s f i r s

20. Slide 20: Overview of Private Equity Investment Strategy (1)

    Overview of Private Equity Investment Strategy (1) Mirai Creation Fund IV and Japan Monozukuri Mirai Fund II were established in April 2026. Continuing fundraising for both newly established funds and focusing on increasing AUM. ● Overview of AUM AUM ＜Q1＞ (New Investments Executed) （Unit: 100 millio

21. Slide 21: Overview of Private Equity Investment Strategy (2)

    Overview of Private Equity Investment Strategy (2) ▍IPO ▍Hosted the "Mirai & Space Summit 2026" Mirai Creation Fund and Space Frontier Fund jointly hosted Mirai Creation Fund I the “SPARX Mirai & Space Summit 2026” on May 27, 2026. Listed on the Listed on the TSE Growth TSE Growth Market in Market J

22. Slide 22: Overview of Private Equity Investment Strategy (3) AUM growth strategy

    Overview of Private Equity Investment Strategy (3) AUM growth strategy The private equity investment strategy manages multiple funds. Our multi-track approach addresses the ongoing decline in AUM caused by portfolio companies’ exits from induvial funds during the investment return period by establis

23. Slide 23: Overview of Private Equity Investment Strategy (4)

    Overview of Private Equity Investment Strategy (4) ▍Ranking for domestic venture capital procurement scale 1 SBI Investment 2,615 USD MN 2 JAFCO Group 1,877 USD MN 3 SPARX Group 1,676 USD MN 4 Globis Capital Partners 1,103 USD MN 5 University of Tokyo Edge Capital Partners 785 USD MN 6 Incubate Fund

24. Slide 24: Appendix

    04. Appendix

25. Slide 25: Status of key management indicators

    Status of key management indicators In this material, we explain the business performance and current business conditions of our group by providing managerial accounting details rather than financial accounting. Use four key management indicators not included in the consolidated financial statements

26. Slide 26: Consolidated Earnings Summary

    Consolidated Earnings Summary (based on management indicators) FY2025 FY2026 Q1 Full year Q1 YoY change Average AUM (Billions of yen) 19,278 21,364 25,495 +32.2% Management fee rate （％） 0.66% 0.64% 0.64% (－0.02) (After deducting commissions) Management fees (Millions of yen) 3,116 13,444 3,931 +26.2

27. Slide 27: Quarterly Trends in Operating Revenue

    Quarterly Trends in Operating Revenue （Millions of yen） 5,894 6,000 Management Fees Performance Fees Other operating revenue 5,606 5,600 5,016 5,042 5,200 1486 803 4,746 4,659 4,800 4,462 4,254 4,227 764 4,400 4,191 1,087 932 378 3,981 589 4,000 3,819 3,739 3,821 226 205 3,471 550 146 3,600 3,311 3,

28. Slide 28: Breakdown of Operating and General Administrative Expenses

    Breakdown of Operating and General Administrative Expenses  Mainly due to increases in commissions paid and personnel expenses. FY2025 FY2026 （Units: Millions of yen） Q1 Full Year Q1 YoY change Commissions paid 690 3,028 847 +22.8% Personnel exp. 853 3,813 1,064 +24.8% Travel exp. 98 311 87 （10.6%）

29. Slide 29: Quarterly Operating and General Administrative Expenses

    Quarterly Operating and General Administrative Expenses (Unit: million yen) Ordinary expenses Commissions paid & Bonuses 2,931 2,851 2,800 2,658 2,626 2,547 2,561 2,508 2,458 2,504 2,400 2,303 2,293 2,329 1244 2,095 1,232 935 2,009 1,102 1,943 1,954 1,026 2,000 1,860 1,867 1,860 1,898 1,081 1,055 91

30. Slide 30: Quarterly Base Earnings

    Quarterly Base Earnings ▍ Average (Unit：100 million yen) AUM(3months average） Management fee(Net) Ordinary Expense (Unit：Millions of yen) 5,000 AUM 26,000 4,000 21,000 3,000 16,000 2,000 11,000 1,000 6,000 0 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

31. Slide 31: Reference Hybrid Business Model

    Reference Hybrid Business Model A hybrid model that combines our traditional strategy of investing in highly profitable ▍AUM as of June-end 2026 listed stocks with the stable strategy of financing Real Assets/Private Equity Japanese Equity OneAsia Japanese OneAsia 1,740.6bn 350.6bn Equity Private Ja

32. Slide 32: What is the Buffet Club?

    Passing on SPARX’s Investment Philosophy through the Buffet Club, an Internal Study Group What is the Buffet Club? Through studying and discussing the investment philosophies of noted investor Warren Buffett and other capitalists, SPARX employees learn and share the value of wanting to make clients

33. Slide 33: External Recognition toward Our Initiatives for Sustainability

    (Reference) External Recognition toward Our Initiatives for Sustainability In recognition of our sustainability efforts, SAPRX has been selected as a constituent of three ESG indices which are adopted by the largest institutional investor in the world, GPIF (Japanese Government Pension Investment Fu

34. Slide 34: Structure of Performance Fees

    Structure of Performance Fees (Related to Equity Investment Fund) Performance Fees are recognized for NAV per share exceeding HWM as of record date for fund （NAV per share） In case NAV per share exceeds the ※HWM is revised ￥16,000 revised HWM Basis of calculating its performance fee Performance Exam

35. Slide 35: Performance Fee Structure (real asset funds)

    Performance Fee Structure (Related to real asset (renewable energy) funds) Performance fee consist mainly of 2 types We operate separate funds that focus on “greenfield investments” — from development through operation of renewable-energy power plants and “brownfield investments” — in the post-commi

36. Slide 36: Performance Fee Structure (venture capital fund)

    Performance Fee Structure (Related to venture capital fund) The investment recovery amount exceeds 100% of contribution amount, and a performance fee is accrued to GP (SPARX) after the preferred dividends are paid to LP investors. ▍ Image of Performance Fee Accrual ①Total Contribution:100 ②LP prefer

37. Slide 37: Primary Investment Strategies: Composite Returns Since Valuation Began ①

    Primary Investment Strategies: Composite Returns Since Valuation Began ① ▍ Japanese Equity Active Long-Only investment strategy ▍ Japanese Equity Mid & Small Cap investment strategy 30.0 Japanese equity active long-only investment strategy Japanese equity mid & small cap investment strategy TOPIX (D

38. Slide 38: Primary Investment Strategies: Composite Returns Since Valuation Began ②

    Primary Investment Strategies: Composite Returns Since Valuation Began ② ▍ Japanese Equity Long-Short investment strategy ▍ Japanese Equity Strategic investment strategy Japanese equity long-short investment strategy Japanese equity strategic investment strategy 4.5 20.0 TOPIX (Dividend included) TO

39. Slide 39: SPARX Channel Official Facebook Official X

    Information We distribute videos and send information via Facebook so that you can better understand the activities of SPARX. We are working to convey the new appeal of our company. Thank you for visiting us. SPARX Channel https://www.youtube.com/user/8739SPARX Official Facebook https://www.facebook

40. Slide 40: Composite details Notes on Investment Trusts

     This report is prepared solely for the purpose of providing information to the shareholders of  The term the "Firm" was redefined effective 15 October 2009 and 30 November 2010 where SPARX Group Co., Ltd. (“SPARX”) and other interested parties, and it is not intended to be a SPARX Investment & Re

41. Slide 41: About Risks Related to Investment Trusts

    ▍ About Risks Related to Investment Trusts  Investment trusts invest mainly in stocks, public bonds, and real estate investment securities of  Indirect costs during investment in investment trusts fluctuating value (assets in foreign currencies also include exchange risks), so their net asset valu

42. Slide 42: SPARX Group Co., Ltd.

    SPARX Group Co., Ltd. Shinagawa Season Terrace 6F, 1-2-70 Konan, Minato-ku, Tokyo, Japan 108-0075 Tel: +81-3-6711-9100 (switchboard) ■This material is only for the purpose of explaining the financial results prepared by SPARX Group Co., Ltd. and SPARX Asset Management Co., Ltd., and it is not a disc

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