Slide 1: Presentation for New Investors: JAFCOを知る
Presentation 年 月期 for JAFCOを知る New Investors 決算説明資料 JAFCO Group Co., Ltd. ジャフコグループ株式会社 April 24, 2024
Slide 2: Contents
Contents • Our Goal and Its Feasibility 3 • Section 1: Company Overview 4 – 12 • Section 2: Basic Plan for Enhancing Corporate Value and Its Feasibility 13 – 25 • Section 3: Initiatives for Enhancing Corporate Value 26 – 31 The contents of this document are based on materials available at the time o
Slide 3: Our Goal and Its Feasibility
Purpose Fueling perpetual growth; investing in bold visions Our Goal and Our goal Basic policy for enhancing Its Feasibility corporate value Promote growth strategy × Improve capital efficiency See P15 Goal: ROE of 15％-20％ Target ROE of 15% in the medium term (around 2027) and 20% in the long term (
Slide 4: Section 1: Company Overview
Section 1: Company Overview JAFCO JAFCO SUMMARY OF FINANCIAL RESULTS 4
Slide 5: Business Endeavors for Realizing Our Purpose
Purpose Fueling perpetual growth; investing in bold visions Business Endeavors for Realizing Our Purpose Japan Venture Japan Buyout US Venture Asia Venture investment investment investment investment Since 1973 Since 1998 Since 1984 Since 1986 We began as a pioneer in Japanese venture capital, Balan
Slide 6: Our Two Business Domains: Venture and Buyout Investment
Combining the strengths of venture and buyout investment to achieve greater performance Our Two Business Venture investment Buyout investment Domains investment Target of • Companies in their early to mature stages that • Startups in their founding to growth stages have realized earnings Our busines
Slide 7: Investment Track Record
Exits Venture Investment Track Record Buyout Commit to new business creation and jointly shape Overseas the future Based on this Mission, we have helped entrepreneurs Investments create various innovative products and services. We will continue to capture the changing times and take on the challenge
Slide 8: Business Model
Relationship building and cooperation Business Model Capital Funds Highly selective, intensive commitments investment Limited Portfolio partners ROI* companies Investment Distributions JAFCO invests in unlisted securities by channeling Fund size recovery (exit) capital gathered from investors into f
Slide 9: Three Sources of Income
1. Fund management fees Limited partners Capital • Fixed fees for the management of funds commitments Fund management fees • Capital commitments from limited partners*** (AUM) × Three Sources of Income Approx. 2% per annum • Key driver: External capital commitments (AUM) Funds x Fund management Our
Slide 10: Sustainable Competitive Advantages
Sustainable Competitive Purpose Fueling perpetual growth; investing in bold visions Advantages Our strengths are our investment management and Enhancing corporate value fundraising capabilities, supported by our organizational foundation. Investment management Fundraising capabilities capabilities B
Slide 11: 2024 Financial Highlights
2024 Total net sales Net income Fund Capital commitments Financial Highlights management fees (AUM) / External capital commitments* 24.4 billion 7.5 billion 4.8 billion 465.6 billion Net sales amounted to ¥24.4 billion (yoy increase of 74%), ordinary 194.9 billion income to ¥8.8 billion, and net inc
Slide 12: Numerical Highlights for Venture and Buyout Investment
2024 Revenue from operational investment IPOs (domestic) Balance of operational investment securities Number of investment professionals securities (unlisted) Numerical Highlights VC VC BO BO 60% 67% 22% 31% for Venture and ¥19.0 6 cos. ¥50.6 61 billion BO billion BO VC VC Buyout Investment 40% 33%
Slide 13: Section 2: Basic Plan for Enhancing Corporate Value and Its Feasibility
Section 2: Basic Plan for Enhancing Corporate Value and Its Feasibility
Slide 14: Our Goal and Its Feasibility
Purpose Fueling perpetual growth; investing in bold visions Repeat Our Goal and Our goal Basic policy for enhancing Its Feasibility corporate value Promote growth strategy × Improve capital efficiency See P15 Goal: ROE of 15％-20％ Target ROE of 15% in the medium term (around 2027) and 20% in the long
Slide 15: Enhancing Corporate Value by Promoting Growth Strategy and Improving Capital Efficiency
Our goal Enhancing Corporate Value Enhance corporate value in a bid to achieve ROE of 15% - 20% by Promoting Our Growth Strategy and Improving Promote growth strategy Improve capital efficiency Capital Efficiency ROI* Total shareholder 80％ We advance our growth strategy by enhancing our External fun
Slide 16: Aiming For an ROE of 15%-20%
Image of financial target and medium-to long- Our goal Past initiatives and results term plan indices within the framework of the basic policy for improving corporate value Aiming For an ROE of Financial target : ROE of 15% to 20％ 15%-20% Results for FY ended Mar. ‘22 Results for FY ended Mar. ‘23 R
Slide 17: Situation of Startups in Japan
Amount Raised / Funded Companies 12,000 3,694 3,675 4,000 3,400 3,366 3,238 3,500 10,000 Amount raised (\ billion) 966.4 2,828 Market environment Venture investment 869.2 3,000 2,583 8,000 Number of funded 2,203 2,500 Situation of companies (incl. those where funding amounts 6,000 1,669 2,015 612.2
Slide 18: Trends in the Buyout Market in Japan
Number and Volume of M&A Deals Involving Japanese Companies (IN-IN only) 4,134 Market Buyout environment investment IN-IN Volume of M&A deals（¥ trillion） Trends in the Buyout IN-IN Number of M&A deals Market in Japan 7.4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 [FY] *Created by JAFCO based
Slide 19: Increase of Risk Capital Supply in Japan
Venture investment Market environment Buyout investment Increase of 90.4 93.5 Risk Capital Supply in Japan Dry powder ($bn) Unrealized value ($bn) 67.8 51.1 67.7 71.6 The amount of assets under management of 39.9 43.2 domestic private equity funds has been increasing in the past 10 years backed by l
Slide 20: The Japanese Government's Startup Development Five-Year Plan
Market environment Venture investment Pre-seed & seed Early & middle Later The Japanese Personnel/network development Enhance funding for business Create unicorn Government’s Startup ⚫ Support of young personnel through mentorship support ⚫ Increase investment of public capital companies in VCs Deve
Slide 21: Government Support for Business Succession and Reorganization
Market environment Buyout investment The Ministry of Economy, Trade and Industry’s response and budget allocation for SMEs, small businesses, and regional economies Government Support for Business Succession and Budget of measures for SMEs*** ¥650.2 billion Reorganization (Budget for fiscal 2024 + S
Slide 22: JAFCO's Presence in Venture Investment
Achievements and management resources Venture investment 67 cos. 20 cos. 445 85 JAFCO’s Presence With cos. cos. Large IPOs 2014 to 2023 2014 to 2023 VC-Backed IPOs Large IPOs*2 with market cap of ¥20 billion or more We have a track record of creating mega ventures with our policy of selective, inten
Slide 23: Buyout Investment Utilizing Our VC Know-How and Network
Achievements and Growth support leveraging knowhow from business succession investments Buyout investment management resources M&A EXIT Buyout Investment Utilizing We utilized our knowhow as a VC on cutting-edge services to Our VC Know-How and help significant increase sales through e-commerce estab
Slide 24: Continual Fund Formation and JAFCO's Fund Size
Our Flagship Funds in Operation We form a new fund about once every three years. Achievements and Venture investment The maturity period of funds is 10 years*. management resources Buyout investment Maturity ¥60.0 billion (50％) Extended SV4 Fund 2024.12 Continual Fund SV5 Fund ¥75.0 billion (43％) 20
Slide 25: The 3 Management Resources That Are Key to Growth
No. of investment professionals with 10+ years of experience Achievements and management resources Human Capital The private equity investment business calls for strong 21 individuals, and having a system for nurturing No. of “most influential venture capital The 3 Management investment professional
Slide 26: Section 3: Initiatives for Enhancing Corporate Value
Section 3: Initiatives for Enhancing Corporate Value
Slide 27: Our Primary Targets and Four Initiatives for Achieving Our Goal
Primary targets Initiatives Our Primary Targets and Further evolution of highly selective, intensive investment • Develop seed projects in view of pre- and post-startup stages Four Initiatives for Return on investments (ROI*) • Promote exits (not just IPOs) and establish approaches • Create synergy
Slide 28: Enhancing Our Investment Management Capabilities
Further evolution of highly selective, intensive investment Business startup program for Supporting Establishment of Ventures by Potential Entrepreneurs potential entrepreneurs and seeds ① Collaboration, POC, etc. Establishment We implemented a business startup program for Participation as Enhancing
Slide 29: Enhancing Our Fundraising Capabilities
Fundraising capabilities (20%) (20%) 97.8 ② 80.0 22.0 (25%) 75.0 (22%) Enhancing Our [¥ billion] 60.0 32.4 29.1 (36%) JAFCO’s capital (43%) Fundraising Capabilities contribution 29.7 （50%） (investment ratio) 75.8 50.9 42.6 External funds raised* 30.3 With the SV7 Fund, we set a target of ¥95.0 billi
Slide 30: Strengthening the Organizational Foundation
Recruitment Training Expanding the workforce Optimization and systematization Men Women Total Ranked 1st in growth environment for employees ③ New graduate 3 3 +6 in their 20s in the securities firms / investment funds / investment-related industries Strengthening the Mid-career 14 3 +17 (out of 379
Slide 31: Shareholder Returns
285.7％ 266.5% ④ Shareholder Returns Total return ratio (Amount of share buyback) (¥39.5 billion) (¥61.3 billion) 124.6% The greater of either 3% of shareholders’ equity Payout ratio (average for beginning and end of period) or 50% of net income will be paid out as dividends. (¥42.4 billion) In FY Ma