JAFCO : Earnings Presentation for the Second Quarter of FY March 2026

Second Quarter

FY March 2026

• Executive Summary 3

  	Financial Results	4 - 17
  	Fund Management Status	18 - 22
  	2Q Achievements and Initiatives	23 - 25
  		26 - 36

  • 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

  • Uncertainty in the market is increasing while the TSE Growth Market and IPOs continue to be at low levels

  • Domestic IPOs decreased to 19 compared to 34 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 ¥4.4 billion on sale of listed/unlisted shares (¥7.4 billion in the same period last year); 1 IPO in Japan

    Investment

  • ¥11.8 billion domestically (¥18.3 billion in the same period last year)

    Shifting focus to domestic investment

  • Transfer of Asian subsidiary scheduled for October 31, expected to generate approx. ¥1.8 billion in extraordinary income

  • Asian subsidiary is set to be operated by new management from October 31

  • Procedures underway for sale of US subsidiary by the end of the fiscal year

  • 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

  • Completed ¥5 billion of share buybacks, resolving to cancel 1,810,000 outstanding shares (3.2%) and resulting in a

    current total of 54,250,000 outstanding shares

  • For FY March 2026, ¥66.5 will be paid out as interim dividends, and annual dividends are forecast to amount to ¥133 (minimum)

Section 1 Financial Results

[¥ billion]

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

[¥ 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

6 mos.

6.7

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

SG&A expenses

(excl. business tax) *1

Management fees

3.6 0.5 2.5 1.1

0.5 1.0

4.4 2.5

2.6

3.6 2.9 3.2 2.9 3.5 3.4 4.3

4.8 4.4 4.3 4.6

0.3 0.2

2.0 2.3

20.03 21.03 22.03 23.03 24.03 25.03

131 132 135 147 159 163

73% 88% 83% 79% 110% 92%

25.09

158

87%

*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.

[¥ billion]

SV6

SV7 *2

established

0.4

0.5 0.6

established

0.8

0.7

0.8

6 mos.

4.2

Fund management fees stack up with fundraising for new funds

Overseas Fund Management Fees

Domestic Fund Management Fees

Total capital commitments

2.2 2.4 2.4 2.7

4.0

3.5

0.4

1.6

3.9

28.03-

30.03

31.03-

33.03

The key driver is capital commitments from external investors.

(Domestic)

Of which, external capital commitments*1

320.0 370.0

**28.03-30.03 and 31.03-33.03 represent medium- to long-term quantitative targets indicated in the Basic Policy for Enhancing

(Domestic)

250.0

290.0

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

25.09

0.3

6 mos.

[¥ billion]

150.2

About 300.0

Potential capital gains

(all funds)

About 195.0

Ratio of external commitments (approx. 65%)

Ratio of

JAFCO's

commitment

(approx. 35%)

About 39.0*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 September 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 as well as fund management fees deducted from success fees have not been considered in the above calculations for the sake of simplicity.

Gross MOIC

[¥ billion]

15.4

2.6

2.8

12.6

11.3

3.3 2.7

1.6

7.9

1.7

12.7

2.1

6 mos.

Breakdown of Capital Gains

MOIC

Domestic 2.3x

Overseas 0.8x

4.4

1.9 Domestic BO

2.8 Domestic VC

(0.3) Overseas

25.09

(6 mos.)

1.8

Gain (loss) on sale, net (listed)

7.6

3.7

6.0

9.6

4.4

Gain (loss) on sale (unlisted)

12.7

3.7

12.6 3.0

0.7

1.9 3.1

4.5

(0.1)

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

25.09

1.1

[¥ billion]

Listed

Unrealized

85.3

85.7

114.9

73.9

120.8

104.4

106.0 109.2

(Domestic: 54.6)

83.8

84.2 (Domestic: 46.4)

63.1

55.1

70.8

69.6

(Domestic: 38.7)

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 25.09

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

Simulation for current balance at exit

*1 ¥139.5 billion: 125.5＋(83.8 - 69.6)

*2 ¥100.0 billion: 92.5 + (46.4 - 38.7)

*3 Average MOIC over past 5 years

6mos.

14.5

Balance of

investment

loss reserves

13.8

13.5

14.2

17.0%

17.0%

14.9%

10.9

16.0%

16.0%

Additions to

investment loss reserves

8.2

17.3%

9.0

7.9

12.1%

Reserve ratio

3.5

[¥ billion]

3.1

2.8

2.7

1.1 1.8

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 September 2025）

   Valuation multiple by holding period

   [¥ billion]

   106.0109.2

   84.2 83.8

   70.8 69.6

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

   1.00

   Fair value valuation multiple

   1.30

   Avg. for the past 5 yrs.

   2.19

   （3.1x against marked-down valuation)

   2.07

   Avg. for the past 15 yrs.

   
   
   
   
   
   

   1.18

   0.99

   Fair value valuation multiple Valuation multiple after markdowns

   1.43

   
   
   

   1.26

   
   
   

   1.13

   0.85

   0.83

   Valuation multiple

   after markdown

   0.68

   0.51

   25.03 25.09 25.03 25.09 25.03 25.09

   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

   25.09

   1x 0.84x 1.26x

   1x 0.83x 1.30x

   0 yrs. → 4.3 yrs.**

   6.4 yrs.***

   101

   Cos.

   112

   Cos.

   57 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 ¥2.2 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

300.2

[¥ 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

15 members

*Numbers of personnel are for Japan only.

Balance of unlisted holdings: ¥150.2 billion / 188 companies (JAFCO's interest: ¥46.4 billion)

Venture: 169 companies / Buyout: 19 companies

Status of Overseas Funds

Balance of unlisted holdings:

71.4 billion / 35 companies

(JAFCO's interest: ¥22.4 billion)

Balance of unlisted holdings:

33.1 billion / 65 companies

(JAFCO's interest: ¥15.1 billion)

Exchange rate: End of September 2025 US$1 =¥148.88 Note: 1. Numbers of personnel are as of October 1, 2025.

Fair value

Balance of unlisted holdings

328.8

(ref.)

Markdowns

[¥ billion]

Overseas

249.9

254.8

227.8

232.9

201.3

182.6

162.6

130.7

206

220

236

261

25.1

29.7

274

22.1

288

81.1

288

37.3

37.2

38.7

43.0

149.7

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

Domestic

179.1

20.03 21.03 22.03 23.03 24.03 25.03 25.09 25.09

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 = ¥148.88 for all periods

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

41.8

5.7

3.9

3.7

1.5

4.1

11.0

6.1

4.0

4.1

7.6

8.4

7.8

7.3

8.6

12.4

5.3

25.03

34.8

37.1

6 mos.

32.8

30.7

13.7

0.6

20.03

21.03

22.03

23.03

24.03

5.8

25.09

4.2

1.4

17.0

16.8

12.5

19.3

19.2

9.0

39.4

[¥ billion]

U.S.

Asia

Japan - Buyout

Japan - VC

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

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

[¥ million]

Average investment amount

783

15%

16%

402

13%

345

15%

414

12%

6 mos.

19%

15%

412

[Stake]

335

Average shareholding

(incl. dilutive shares)

25.09

20.03 21.03 22.03 23.03 24.03 25.03

8

1.7

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 2Q Achievements and Initiatives

Business line

Initial investment

IPO

Venture

PAPABUBBLE JAPAN INC.

Business

line

Initial investment

Exit

Appendix

Amount Raised / Funded Companies

Amount of funds raised (JPY1B) No. of funded cos. (incl. cos.

Top 10 Startups by Amount Raised

（2024 + 1H of 2025）

3,701

3,752

3,471

3,480

2,705

2,285

2,070

988

886

826

875

623

517

577

325

(6mos.)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2025H1

1,377

6mos.

340

raising unknown amounts)

4,197

4,368

4,177

[CY]

*Sources of the data are as follows:

Amount of funds raised and number of funded companies: Speeda Startup Information Research "Japan Startup Finance 2025 First Half" (issued July 30, 2025), page 13 "Startup Financing Amount and Number of Funded Companies" (as of July 19, 2025)

Amount of funds raised in the first half of 2024: Speeda "Japan Startup Finance 2024 First Half" (issued July 30, 2024), page ● "Domestic Startup Funding Trends" (as of July 19, 2024)

Note: 1. Figures for each year are those identified up to the time of aggregate calculationt.

*The fundraising amounts from the following year-and-a-half period's rankings were added to compile the top 10 companies. Created by

JAFCO.

• 2025: Speeda Startup Information Research "Japan Startup Finance 2025 First Half" (issued July 30, 2025), page 25, "Top 20 Companies by Fundraising Amount in First Half of 2025" (as of July 19, 2025)

• 2024: Speeda Startup Information Research "Japan Startup Finance 2024" (issued January 28, 2025), page 24, "Top 20 Companies by Fundraising Amount in 2024" (as of January 20, 2025)

Japanese Companies (IN-IN only)

Volume of M&A deals (¥ trillion)

Number of M&A deals

2016年 2017年 2018年 2019年 2020年 2021年 2022年 2023年 2024年

2025年

9.8

3,697

9 mos.

Number and Volume of M&A Deals Involving Potential of the Buyout Market in Japan

No. of SMEs in Japan2

500,000

cos.

Rate of lack of successors4

52.1％

OECD ranking in no. of SMEs1

4th

Average age of company presidents3

60.7 yrs.

[CY]

*Created by JAFCO based on RECOF M&A DATABASE (as of October 21, 2025). No. of deals includes deals classified as "M&A" and "In-group M&A" in the database.

1. OECD SDBS ISIC Rev.4 Number of enterprises, SMEs (2017)

2. Number of companies in 2021 Economic Census for Business Activity excluding large companies and small businesses (Ministry of Internal Affairs and Communications & Ministry of Economy, Trade, and Industry)

3. Teikoku Databank's National Survey on Average Age of Company Presidents (2024)

   Based on the 270,000 SMEs across all regions and industries available in Teikoku Databank's CCR credit investigation reports, etc.

4. Teikoku Databank's Nationwide Survey on Rate of Lack of Successors (2024)

Left: VC-Backed IPOs in Japan

31

10

[Cos.]

First price-based market cap.

26

28

6 mos.

22

10

19

7

8

10

20B or more

11

7

5

6

10B-20B

5

10

Less than 10B

3

6 2

5

4

1

15

4

3

1

14

5

1

4

14

4

1

2

14

1

1

4

6

4

2

4

2

2

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)

Multiple on Invested Capital (MOIC): JAFCO's Interests

Revenue from operational investment securities

Cost of operational investment securities

Gross MOIC * MOIC after mark-down**

6 mos.

5.0

4.5

4.3

3.7

3.5

3.8

3.4

3.0

2.3

2.7 2.8

3.0

2.8

2.9

2.9

2.2 3.4

2.5

3.3

2.5 2.5

2.3

2.6

2.5

1.3 1.4

1.5

1.9 1.8

2.6

2.8

2.7

2.0 2.0

1.2

2.4 2.5

2.1

1.6

1.8

1.5

1.7

1.9 1.7

1.6 1.7

1.8

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 25.09

[¥ billion] 60

50

40

30

20

10

0

Average MOIC 2.2x（5 yrs.）

2.2x（10 yrs.）

2.1x（15 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)

30