JAFCO : Earnings Presentation First Quarter For the Year Ended March 31, 2026

First Quarter

FY March 2026

• Executive Summary 3

  	Financial Results	4 - 17
  	Fund Management Status	18 - 22
  	1Q Achievements and Initiatives	23 - 25
  		26 - 34

  • Section 1

  • Section 2

  • Section 3

  • Appendix

  The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued accuracy and reliability of the material. The contents may be changed without advance notification. Please note that even if this document contains forward-looking or forecast statements, such statements are not guarantees of future performance, and future performance may differ from actual results due to changes in the business environment and other factors. The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by the Company or in private equity funds. JAFCO Group holds all rights to this document with the exception of material taken from other sources, and no part of the document may be used or reproduced for any purpose whatsoever without prior permission.

  Changes in business environment and impact on portfolio companies

  • In an ongoing uncertain market environment, both the TSE Growth Market and IPOs are at low levels

  • Domestic IPOs decreased to 11 compared to 18 in the same period last year

  • Continue close monitoring of political trends and financial policies in Japan and abroad, startup-related policies in

    Japan, and the impact of TSE's announcement of its proposed amendment to the Growth Market listing criteria

    Performance

  • Capital gains of ¥3.2 billion on sale of listed/unlisted shares (¥2.5 billion in the same period last year)

  • 1 IPO in Japan

    Investment

  • ¥6.8 billion on a global basis (¥9.9 billion in the same period last year)

    Shifting focus to domestic investment

  • Resolved to focus on domestic investment to promote the growth strategy and enhance capital efficiency

  • Sale procedures are underway for the transfer of the Asian and US subsidiaries

  • We will continue to hold our investments in existing funds managed by the Asian and US subsidiaries

    Sustainability

  • Formulated our Human Rights Policy

  • Became a PRI signatory and formulated our ESG Investment Policy

    Shareholder returns

  • The dividend policy will be to pay out the greater of either 6% DOE (ratio of annual dividends to shareholders' equity

    at end of previous fiscal year) or a 50% payout ratio

  • Implementing a maximum of ¥5 billion of share buybacks

  • For FY March 2026, ¥66.5 interim dividends, ¥66.5 year-end dividends (minimum), and ¥133 annual dividends (minimum) are forecast

Section 1 Financial Results

ROE

*Amount calculated by deducting "Other costs" from "Other sales"

6.9% - - -

[¥ billion]

Income sources (left bar)

Capital gains

21.5

15.4

16.6

11.3

20.0

12.6

8.1

13.4

7.9

18.6

12.7

*3

3 mos.

Expenses (right bar)

Business tax

Success fees

4.1

4.3

4.54.0

5.5

3.7

1.2

0.6

4.8 5.2

0.4 1.6 0.5

4.3

SG&A expenses

(excl. business tax) *1

Management fees

3.6 0.5 2.5 1.1

0.5 1.0

1.2

2.6

3.6

2.9

3.2 2.9 3.5 3.4 4.3

4.8 4.4 4.3 4.6 0.1 3.2

1.0 1.1

0.1

*Note: 1. Business tax is classified separately from SG&A expenses due to large fluctuation in the amount resulting from gains on sales of shareholdings.

1. Admin. expense coverage＝Management fees/SG&A expenses excl. business tax

2. Management fees of ¥4.8 billion for FY 24.03 include ¥0.4 million corresponding to FY23.03 (due to the increase of external capital commitments for the SV7 fund).

3. Figures are rounded to the nearest decimal place.

4. Income from fund management excludes management of JAFCO's interests in funds.

5. Accounting Standard for Revenue Recognition is applied to all periods. US subsidiary is not consolidated.

Fund management income × Rate of

external investors' interests × 20％

② Success fees**

Fees from investors' capital commitments for the operation of funds

Total capital commitments to funds

External investors'

interests

Gain/loss on the sale of portfolio shares

corresponding to JAFCO's interests in funds

③ Capital gains

* Funds entrusted for management by external investors; The amount subject to fund management fees excluding investments in ICON.

** Success fees are recorded once cumulative dividends exceed capital commitments.

2.4 2.4

3.9

4.2

established

3 mos.

0.8

established

[¥ billion]

SV6

SV7 *2

Overseas Fund

Management Fees

Domestic Fund

Management Fees

28.03- 31.03-

30.03 33.03

Fund management fees stack up with fundraising for new funds

199.6

173.8

129.0 132.0 138.9 157.6 194.9 194.9

123.8 123.8 123.8 139.9 169.3 173.8

312.8

365.0 365.0 215.0 289.4 312.8 312.8

(Domestic)

Total capital commitments

The key driver is capital commitments from external investors.

320.0 370.0

250.0 290.0

**28.03-30.03 and 31.03-33.03 represent medium- to long-term quantitative targets indicated in the Basic Policy for Enhancing Corporate Value as updated at the end of FY March 2025.

*1. Funds entrusted for management by external investors; The amount subject to fund management fees excluding investments in ICON.

Amount of Success Fees

Image of Future Success Fees for the Current Balance of Unlisted Holdings in Japan*2 (assuming an MOIC (multiple on invested capital) of 3.0x)

[¥ billion]

4.5

3.6

2.5

1.6

1.0

0.6

20.03

21.03

22.03

23.03

24.03

25.03

25.06

0.1

3 mos.

[¥ billion]

146.0

About 290.0

Potential capital gains

(all funds)

About 188.0

Ratio of external commitments (approx. 65%)

Ratio of

JAFCO's

commitment

(approx. 35%)

About 37.5*4

Balance of

unlisted holdings in

Japan

(all funds)

*1 Success fees are recorded once the cumulative distributions exceed capital commitments.

*2 Calculation of success fees for JAFCO's total balance of unlisted holdings in Japan as of the

end of June 2025 assuming an MOIC of 3.0x.

*3 The average MOIC over the past 10 years in Japan was 2.7x.

*4 Success fees distributed to partners and executives of JAFCO or of consolidated subsidiaries as well as fund management fees deducted from success fees have not been considered in the above calculations for the sake of simplicity.

[¥ billion]

15.4

2.6

2.8

12.6

11.3

3.3 2.7

7.9

12.7

3 mos.

Gross MOIC

1.6 2.1

1.7

2.1

Gain (loss) on sale, net (listed)

7.6

3.7

6.0

9.6

3.2

Gain (loss) on sale (unlisted)

12.7

3.7

12.6 3.0

0.7 1.9 3.1

3.5

(0.3)

Unlisted

20.03 21.03 22.03 23.03 24.03 25.03

Gains 16.7 4.4 3.1 2.2 5.1 4.6

25.06

0.4

[¥ billion]

Listed

Unrealized

55.1

70.8

104.4

69.2

(Domestic: 38.0)

73.9

120.8

106.0 104.4

(Domestic: 50.5)

82.6

84.2 (Domestic: 45.7)

63.1

114.9

85.7

85.3

Earnings in the income statement

Capital gains

Future sale valuation

Fair value valuation

Acquisition cost

Marked-down valuation

[¥ billion]

20.03 21.03 22.03 23.03 24.03 25.03 25.06

*Fair value valuation began in 22.03; Prior figures have not been assessed and are therefore omitted.

Simulation for current balance at exit

*1 ¥137.5 billion: 124.0＋(82.6 - 69.2)

*2 ¥99.0 billion: 91.0 + (45.7 - 38.0)

*3 Average MOIC over past 5 years

3mos.

14.5

Balance of

investment

loss reserves

13.8

13.5

13.4

17.0%

14.9%

10.9

16.0%

16.0% 16.2%

Additions to

investment loss reserves

8.2

17.3%

9.0

7.9

12.1%

Reserve ratio

[¥ billion]

3.1

3.5

2.8

2.7

1.1

0.6

Balance of unlisted

securities

Net reserve additions

By region [¥ billion]

Note:

1. Investments in other funds are not included.

2. Figures in the graph are rounded to the

   Valuation of unlisted operational investment securities

   Valuation multiple in holding period and assumption until exit

   （As of the end of June 2025）

   Valuation multiple by holding period

   (Yrs. below show average holding period) (No. of portfolio companies based on holding period is shown below)

   [¥ billion]

   106.0104.4

   84.282.6

   70.8 69.2

   1.00

   Fair value valuation multiple

   1.26

   0.84

   Avg. for the past 5 yrs.

   2.19

   （3.1x against marked-down valuation)

   2.07

   Avg. for the past 15 yrs.

   
   
   
   
   
   

   1.00

   Fair value valuation multiple Valuation multiple after markdowns

   1.16

   1.16

   1.22

   
   
   

   1.45

   
   
   

   0.83 0.71

   0.52

   25.03 25.06 25.03 25.06 25.03 25.06

   Valuation multiple

   after markdown

   Acquisition Shares being

   Acquisition cost

   Valuation after

   markdowns

   Fair value valuation

   held

   Avg. MOIC *

   3 yrs or less 3-6 yrs 6-9 yrs Over 9 years

   25.03

   25.06

   1x 0.84x 1.26x

   1x 0.84x 1.26x

   0 yrs. → 4.2 yrs.**

   6.4 yrs.***

   110

   Cos.

   107

   Cos.

   52 Cos.

   18 Cos.

   * Avg. MOIC: Calculated by dividing total revenue from operational investment securities over the 5-yr period/15-yr period at the end of the previous fiscal year by total cost of sales. The multiple is not that of assets currently being held.

   ** Average holding period (Shares being held): Average holding period since initial investment of shares currently being held.

   *** Average holding period (Avg. MOIC): Average holding period of operational investment securities that have been sold or gone public during the 5-yr period ended March 31,2025.

   • Fair value valuation: Unaudited reference values estimated by JAFCO based on the International Accounting Standards, which are also disclosed to fund investors. Figures of US and Asian funds are audited based on US GAAP and International Accounting Standards, respectively.

   • Valuation multiple: Valuation multiple against 1 as acquisition cost

Asset composition Fund assets under management and our interests

[¥ billion]

*1 Including valuation difference in market value of unlisted holdings of ¥1.3 billion

*2 The amount of capital commitments that have not been paid to the funds under management.

Note: Part of fund assets under management include JAFCO's direct investment interests

Unpaid assets

Paid-in assets

302.6

[¥ billion]

*The amount of capital commitments to be paid into the funds under management within about three years according to the investment progress

[¥ billion]

FY March 2026

A

B

C＝AーB

D

E＝CーD

F

EーF

[¥ billion]

*Note: 1. Amount excluding treasury shares

2. Share price is the closing price at the end of each term

Review of dividend policy FY March 2026 onward The greater of 6% DOE*4 or a 50% payout ratio

285.7％

266.5%

(¥39.5 billion)

(¥61.3 billion)

124.6%

*4 Shareholders' equity at the end of the previous fiscal year

102.3%

36.9%

(¥42.4 billion)

(¥5.0 billion)

(Share buybacks

Total return ratio

(¥1

llion)

are based on FY

(Amount of share buyback)

Payout ratio

26.1%

40.0%

13.7%

34.1%

30.8%

0.2 bi

11.0%

26.5%

25.6%

50.1% 50.1%

March 2025 results and are therefore counted as shareholder

returns for this

16.03 17.03 18.03 19.03 20.03 21.03 22.03 23.03

24.03

25.03

fiscal year)

33.3 33.3 35.7 37.3 39.3 46.0 51.0 150.0 *69.0 88.0

4.4 4.4 3.3 3.5 3.6 4.1 3.6 8.2 3.8 4.8

Dividend policy

Flexible distribution with a

focus on continuity

*For FY March 2023, the greater of a or b.

The greater of either 3%

３% DOE*2 DOE or 50% of net

income*3

1. ¥150

2. Amount calculated by dividing FY March 2023 net income including the gain on the sale of shares in Nomura Research Institute, Ltd., and after deducting the amount of the share buyback through TOB, by the number of the Company's shares outstanding on the record date of the dividend

   *2 Average of the beginning and end of the period. Shareholders' equity does not include unrealized gain (loss)

   *3 The Company's basic dividend policy from FY March 2024 to FY March 2025 has been to pay the greater of 3% of shareholders' equity (initial and term-end average value) or 50% of net income.

   
   
   

   Section 2 Fund Management Status

   Japan

16 members

*Numbers of personnel are for Japan only.

Balance of unlisted holdings: ¥146.0 billion / 186 companies (JAFCO's interest: ¥45.7 billion)

Venture: 167 companies / Buyout: 19 companies

Status of Overseas Funds

Balance of unlisted holdings:

69.0 billion / 35 companies

(JAFCO's interest: ¥21.9 billion)

Balance of unlisted holdings:

33.3 billion / 66 companies

(JAFCO's interest: ¥15.0 billion)

Exchange rate: End of June 2025 US$1 = ¥144.81 Note: 1. Numbers of personnel are as of July 1, 2025.

Balance of

Fair value

unlisted holdings

225.4

230.6

199.0

180.4

160.4

127.2

206

220

236

261

24.7

29.3

274

21.9

287

288

82.1

36.9

36.7

39.1

38.2

247.4 248.3

311.5

(ref.)

Overseas

148.3

[¥ billion]

Markdowns

Overseas (after markdown) Domestic (after markdown) Domestic/overseas: No. of cos.

Domestic

163.2

20.03 21.03 22.03 23.03 24.03 25.03 25.06 25.06

Note: 1. Figures are rounded to the nearest decimal place.

1. "Overseas (after markdown)" and "Domestic (after markdown)" reflect investment loss reserves only and do not consider markups.

2. Exchange rate: US$1 = ¥144.81 for all periods

3. Overseas investments made by the Investment Division in Japan are included in the category of "Domestic."

41.8

6.8

0.8

20.03

21.03

22.03

23.03

24.03

25.03

25.06

2.7

17.0

16.8

12.5

19.3

19.2

9.0

5.8

3.9

5.7

3.7

1.5

4.1

11.0

6.1

4.0

4.1

7.6

8.4

7.8

7.3

34.8

37.1

3 mos.

32.8

30.7

0.1

12.4

5.3

8.6

39.4

[¥ billion]

U.S.

Asia

Japan - Buyout

Japan - VC

Note: 1. Figures are rounded to the nearest decimal place.

1. Overseas investments made by the VC Investment Division in Japan are included in the figures for Japan.

   Invested ¥2.0 billion in 5 startup companies in Japan

[¥ million]

Average investment amount

783

15%

16%

402

13%

345

15%

414

12%

3 mos.

20%

15%

412

[Stake]

390

Average shareholding

(incl. dilutive shares)

5

2.0

25.06

20.03 21.03 22.03 23.03 24.03 25.03

21 19 29 22 25 22

5.1 2.5 2.8

2.8

4.2 2.8

Note: 1. Figures are rounded to the nearest decimal place.

1. Buyout investments are excluded from the chart.

2. Both average investment amount and average shareholding are simple average of new venture investments in Japan.

3. Post-money valuation is calculated by dividing average investment amount by average shareholding.

Section 3 1Q Achievements and Initiatives

Business line

Initial investment

IPO

Izawa Towel Co., Ltd.

Venture

Business line

Initial investment

Exit

Appendix

Left: VC-Backed IPOs in Japan

31

10

[Cos.]

First price-based market cap.

26

28

3 mos.

22

10

19

7

8

10

20B or more

11

7

5

6

10B-20B

5

Less than 10B

3

10

5

4

1

15

6 2

4

3

1

14

5

1

4

14

4

1

2

14

1

1

4

6

4

2

2 1

1

0

Domestic IPOs

JAFCO-Backed IPOs

Total market value of VC/PE

funds' holdings in IPOs (￥billion) a

Market value of JAFCO's holdings in IPOs (￥billion) b JAFCO's share

b/a

Right: Of which, JAFCO-Backed IPOs

33 35

Note: 1. Market values are rounded to the nearest decimal place

1. VC-Backed/JAFCO-Backed IPOs: Companies/portfolio companies in which VCs (including CVCs; excluding buyout investments) holding 10% or more stake immediately prior to IPO

2. The lower-half table includes IPOs with VC holdings of less than 10%; Market value of JAFCO's holdings includes CVCs and excludes buyout investments

3. Market value : No. of shares at IPO application x first price (Compiled by JAFCO from IPO prospectuses)

4. JAFCO-Backed IPOs for 22.03 includes an IPO from investment securities portfolio (Kibun Foods)

Revenue from operational investment securities

Cost of operational investment securities

Gross MOIC * MOIC after mark-down**

3 mos.

5.0

4.5

4.3

3.7

3.5

3.8

3.4

3.0

3.0

2.3

2.7 2.8

2.8

2.9

2.9

2.2 3.4

2.5

2.7

3.3

2.5 2.5

2.6

2.5

1.3 1.4

1.5

1.9 1.8

1.2

2.6

2.4 2.5

2.8

2.7

1.6

1.8

2.0 2.0

1.5

1.7

1.9 1.7

2.1 2.1

1.6 1.7

1.1 0.9

1.0 0.7 0.8 1.0

00.03 01.03 02.03 03.03 04.03 05.03 06.03 07.03 08.03 09.03 10.03 11.03 12.03 13.03 14.03 15.03 16.03 17.03 18.03 19.03 20.03 21.03 22.03 23.03 24.03 25.03 25.06

[¥ billion] 60

50

40

30

20

10

0

Average MOIC 2.2x（5 yrs.）

2.2x（10 yrs.）

*MOIC: Revenue from operational investment securities ÷

Cost of operational investment securities

**MOIC after mark-down: Operational investment securities ÷ (Revenue from

operational investment securities - Reversal of investment loss reserves)

28

Results

Medium-term targets

Long-term targets

Changes in indices from shift to focusing on domestic investment and transferring overseas subsidiaries

• For FY March 2026 onward, only external capital commitments among total capital commitments of new domestic funds will drive increase in annual management fees

• Core income (management fees - SG&A expenses) to improve with the transfer of the consolidated subsidiary in Asia

• We will hold our interests in Asian and US funds under management until maturity; Target 2.5x-3.0x for MOIC of domestic funds for FY March 2026 onward; Expecting MOIC of overseas funds to continue at 1.6x

  Domestic: 3x (Overseas:

  1.6x*5)

• Necessary funds will decrease as we will only target domestic funds for investment in FY March 2026 onward; Net assets will also decrease

Aim to achieve target ROE by promoting the growth strategy and improving capital efficiency

Note: 1. Total capital commitments: The total amount of capital commitments of all JAFCO-managed funds in Japan, Asia, and the US. Due to focusing on domestic investment, figures for medium- and long-term targets only apply to domestic funds.

1. External capital commitments: Of total capital commitments, JAFCO's interest, funds managed by US subsidiary which is unconsolidated, and funds under extension are excluded. It is the amount subject to fund management fees. Due to focusing on domestic investment, figures for medium- and long-term targets only apply to domestic funds.

2. Annual management fees: Amount subject to management fees × approximately 2%

3. JAFCO's investment ratio in new domestic funds: Ratio of JAFCO's investment in capital commitments to funds in Japan

   established around once every 3.5 years.

4. Future MOIC for Asian and US funds are calculated as 1.6x, the average over the past five years.

5. Available cash and deposits is calculated by deducting fixed-purpose cash and deposits such as cash in funds (JAFCO's interests), expected dividend payments, accrued income taxes, and accrued expenses from cash and deposits. Figures for medium- and long-term targets are necessary funds.

   60-100%

   or more

1. Includes ¥63.8 billion of gain on sale of shares of Nomura Research Institute, Ltd.

   
   
   

2. Effective total payout ratio: Ratio of total amount of dividends paid and share buybacks (buybacks resolved at the earning announcement in the next fiscal year are treated as buybacks for the current fiscal year) against net income.

Share Price Index and Shareholder Returns

• EPS＝Net income per share for the relevant term

• BPS＝Net assets per share for the relevant term

* Figures have been adjusted to reflect a 3-for-1 stock

split conducted in the fiscal year ended March 31, 2022.

** Note: For FY March 2023, the greater of a or b.

1. ¥150

2. Amount calculated by dividing FY March 2023 net income including the gain on the sale of shares in Nomura Research Institute, Ltd., and after deducting the amount of the share buyback through TOB, by the number of the Company's shares outstanding on the record date of the dividend (excluding treasury shares then held by the Company)