Jafco Group Co., Ltd. TSE:8595

JAFCO : Earnings Presentation for the Year Ended of FY March 2026

Published

Source: MarketScreener

FY March 2026



  • Executive Summary 3

    Financial Results

    4 - 21

    Management Mindful of Capital Costs and the Stock Price

    22 - 27

    Fund Management Status

    28 - 32

    Initiatives for Enhancing Corporate Value

    33 - 43

    44 - 55

    • Section 1

    • Section 2

    • Section 3

    • Section 4

    • 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

    • The TSE Growth Market and IPO market continue to be at low levels

    • IPOs in the Growth Market decreased to 32 compared to 59 in the same period last year (April to March)

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

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

      Performance (standalone)

    • Capital gains of ¥8.0 billion on sale of listed/unlisted shares (¥12.5 billion in the same period last year); 2 IPOs in Japan

      Investment

    • ¥19.4 billion domestically (¥28.0 billion in the same period last year)

      Funds

    • Established the flagship SV8 Fund Series in December; Approx. ¥58 billion raised, aiming for total of ¥100 billion

      Shifting focus to domestic investment

    • Completed the transfer of the Asia subsidiary, JAFCO Investment (Asia Pacific) Ltd (JIAP), on October 31, 2025 and the US subsidiary, JAFCO America Ventures Inc. (Icon), on January 6, 2026; Non-operating income and extraordinary income of approx. ¥2.7 billion recorded

    • Following the transfers, we will continue to hold our investments in existing funds managed by the Asian and US

      companies

      Sustainability

    • Formulated our Human Rights Policy; Became a PRI signatory and formulated our ESG Investment Policy

      Shareholder returns

    • Completed ¥5 billion of share buybacks and canceled 1,810,000 shares (3.2%), resulting in total of 54,250,000 outstanding shares

    • No change to ¥66.5 year-end (¥66.5 interim) and ¥133 annual dividends for FY March 2026

    • Projected (minimum) dividends for FY March 2027 are ¥133 (¥66.5 interim and ¥66.5 year-end)

      Change of company name

    • Company name scheduled to be changed to JAFCO Co., Ltd. (effective October 1, 2026)



Section 1 Financial Results

JAFCO has transitioned to non-consolidated financial statements starting from the third quarter of the fiscal year ending March 31, 2026. As such, figures for prior periods are also presented on a standalone basis or as domestic figures excluding overseas funds.

Prior to 3Q of FY March 2026 3Q of FY March 2026 onward

Operational hubs

Japan, Asia, and the US

Focus all resources on Japan (domestic)

Completed transfer of JIAP (Oct. 31, '25) and Icon (Jan. 6, '26)

Transitioned to non-consolidated (standalone) financial statements

Capital gains from interests in overseas funds*1 to be recorded as non-operating gains/losses

*There will be no fund management fees or success fees following the transfer of the overseas subsidiaries.

Interests in overseas funds*1 to be reclassified as investment securities

*Decided to focus on domestic investment as of Apr. 23, '25

Financial statements

Consolidated financial statements

Revenue recording

Fund management fees, success fees, and capital gains recorded as operating gains/losses

B/S recording All is recorded as operational investment securities

Accounting Treatment Starting from Q3 of FY March 2026 B/S recording

Invest ments

Operational investment securities

Listed

Unlisted

Investment loss reserves

Investment securities

Interests in overseas funds*2

  • Domestic funds

  • Overseas funds

JAFCO's

interests *2

(US and Asia)

Revenue recording

Gross profit

Limited partners'

interests

JAFCO's

interests

Additions to investment loss reserves (net)

Capital gains

Income from fund management Fund management fees

Success fees

Operating income

Non-operating gains/losses

Selling, general and administrative expenses

Net income

*1 JAFCO's interests in existing funds operated by the transferred Asian and US companies.



Non-operating

gains/losses

(interests in overseas funds)

SG&A expenses

Income from fund management

(fund management fees

& success fees)

Capital gains

(Reference) Change in Profit/Loss Accounting from Transition to Non-Consolidated Financial Statements

Japan

Asia USA

Previous financial statements

New financial

statements

Consolidated

Non-consolidated

Non-consolidated

○

○

○

○

○

Until Sep. '25

○

Until Dec. '25

○

-

-

Japan

○

○

○

-

-

Asia

○

-

USA

○

Partial

○

Partial; Until Dec. '25

Japan Asia

USA

○

○

-

○

-

-

○

-

-

Asia

○

From Oct. '25

USA

○

From Jan. '26



[¥ billion]

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

・For Asian funds, recorded as capital gains up to 2Q of FY March 2026 and as non-operating gains/losses from 3Q of FY March 2026. For US funds, recorded as capital gains up to 3Q of FY March 2026.

Year ended

March 31, 2025

Year ended

March 31, 2026

Comparison

Total A

Total B

B/A

Total net sales

28.2

21.6

77%

Gross profit

15.8

9.6

61%

Capital gains

12.5

8.0

64%

Domestic

10.4

9.5

91%

Income from fund management

4.8

3.6

75%

Management fees

3.5

3.2

93%

Success fees

1.3

0.4

30%

Other *

(1.5)

(1.1)

-

Additions to investment loss reserves

(0.3)

0.8

-

(Reversal of) unrealized losses on operational investment securities

(0.0)

0.2

-

SG&A expenses

4.1

4.0

98%

(SG&A expenses exclueding buisiness tax)

3.6

3.6

101%

Operating income

12.1

5.6

46%

Non-operating gains/losses

1.1

0.3

28%

Ordinary income

13.2

5.9

45%

Net income

9.6

6.6

69%

ROE

7.1%

4.8%

-

*All quarterly figures are cumulative.

[¥ billion]

26.3

20.3

21.3

22.3

23.3

24.3

25.3

1Q

2Q

3Q

4Q

Capital gains

Domestic

11.2

4.8

10.7

9.5

12.7

12.5

4.0

4.4

7.8

8.6

12.5

10.4

3.3

3.3

4.5

4.7

5.1

6.5

8.0

9.5

Income from fund management

3.4

4.7

6.5

3.7

4.4

4.8

0.9

1.9

2.9

3.6

Management fees

2.2

2.4

2.4

2.7

4.0

3.5

0.8

1.6

2.5

3.2

Domestic

2.1

2.3

2.2

2.6

3.8

3.3

0.8

1.6

2.4

3.1

Success fees

1.2

2.3

4.2

0.9

0.4

1.3

0.1

0.3

0.4

0.4

Domestic

1.2

1.7

4.2

0.9

0.4

1.3

0.1

0.3

0.4

0.4

Additions to investment loss reserves (net)

Domestic

(0.5)

0.2

2.6

2.4

(1.9)

(1.4)

5.6

4.3

(0.8)

(1.9)

(0.3)

(1.1)

0.0

(0.0)

0.8

(0.0)

0.0

0.5

0.8

1.2

Non-operating gains/losses

5.9

2.6

1.6

3.3

1.8

1.1

0.2

0.2

2.1

0.3

MOIC

2.1x

3.1x

2.8x

1.7x

1.7x

2.2x

2.2x

1.9x

1.5x

1.8x

Domestic

2.2x

5.5x

3.3x

2.1x

2.1x

2.2x

2.6x

2.3x

2.3x

2.8x

Balance of operational investment securities

61.8

77.5

86.2

96.4

101.5

103.1

100.1

104.3

68.7

64.6

Listed

8.4

16.2

14.2

12.7

17.4

20.4

18.9

20.7

22.4

18.3

Domestic

8.2

14.8

13.6

10.0

14.2

19.4

17.8

19.2

22.4

18.3

Unlisted

53.3

61.3

72.0

83.7

84.1

82.8

81.2

83.7

46.3

46.3

Domestic

36.6

42.6

47.4

54.3

50.6

45.8

45.7

46.4

46.3

46.3

Balance of investment loss reserves

Domestic

(7.9)

(5.3)

(10.5)

(7.8)

(8.6)

(6.4)

(14.2)

(10.7)

(13.4)

(8.8)

(13.1)

(7.7)

(13.1)

(7.7)

(14.2)

(7.7)

(8.2)

(8.2)

(8.9)

(8.9)

Investment securities (JAFCO's interests in funds managed by

the transferred overseas subsidiaries)

-

-

-

-

-

-

-

-

36.3

34.9



Profit and SG&A Expenses (Domestic Only; Overseas Funds Excluded)

Management fees in the fiscal year amounted to ¥3.1 billion. Management fees from fundraising for the new flagship fund SV8 Series

will start contributing from the next fiscal year.

18.9

15.0

13.5

12.9

13.0

12.5

8.1

9.5

7.9

10.4

8.6

9.5

4.8 3.3

4.6

1.2

0.5

2.1 2.8

3.7

1.7 1.1

2.3 2.6

4.4

4.2

3.4

0.5

2.2 2.9

1.2

0.9

2.6 3.4

*3

3.8

0.4 0.4

3.8 3.3

1.3

4.1

0.5

0.4

4.0

0.4

3.3 3.6 3.1 3.6

[¥ billion]

Income sources (left bar)

Capital gains

Success fees

Management fees

Expenses (right bar)

Business tax

SG&A expenses

(excl. business tax) *1

20.03

21.03

22.03

23.03

24.03

25.03

26.03

No. of employees

102

103

108

117

126

131

133

Admin. expense coverage*2

79%

91%

83%

81%

120%

97%

89%

*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 (non-consolidated) / SG&A expenses excl. business tax

  2. Management fees of ¥3.8 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.

Fund management income × Rate of

external investors' interests × 20％

② Success fees**

① Fund management fees Capital commitments from external

investors* × Approx. 2% per annum

Fees from investors' capital commitments for the operation of funds

Total capital commitments to funds

JAFCO's interests

External investors'

interests



Returns generated from JAFCO's commitments to funds

Gain/loss on the sale of portfolio shares

corresponding to JAFCO's interests in funds

③ Capital gains

③

Capital gains on

JAFCO's interests

② Success fees

① Fund management fees

* Funds entrusted for management by external investors.

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

Stably record fund management fees through the operation of flagship funds (SV5, SV6, SV7).

Increase the fund size in line with market expansion, increase the external funding ratio, and accumulate fund management fees.

[¥ billion]

SV6

established

*2

SV7

established

SV8

3.8

3.3

3.1

2.6

2.3

2.2

2.1

.9

.2

Fund management fees Capital commitments from external investors × Approx. 2% per annum

established *3

Management Fees

Fund management fees

4

stack up with fundraising

3 for new funds

20.03 21.03 22.03 23.03 24.03 25.03 26.03 …

28.03-

30.03

31.03-

33.03

The key driver is capital commitments from external investors.

Total capital commitments

365.0

365.0

215.0

289.4

312.8

312.8

312.8

320.0

370.0

Of which, external capital commitments*1

123.8

123.8

123.8

139.9

169.3

173.8

173.8

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.

*2. Management fees of ¥3.8 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. Management fees from the new fund series are expected to arise starting in FY March 2027.

Success fees amounted to ¥0.4 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

4.2

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)

1.7

1.2

1.3

0.9

0.4

0.4

[¥ billion]

[¥ billion]

About 300

About 195

152.0

Assuming an

MOIC of 3.0x*3

Potential capital gains

(all funds)

Ratio of external commitments (approx. 65%)

Ratio of

JAFCO's

commitment

(approx. 35%)

About 39.5*4

20.03 21.03 22.03 23.03 24.03 25.03 26.03

Balance of

Success fees

Fund returns

（potential capital gains）

×

Ratio of external commitments

×

20％

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 March 2026 assuming an MOIC of 3.0x.

*3 The average MOIC over the past 10 years in Japan was 2.6x.

*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.

Total capital gains amounted to ¥9.5 billion with a MOIC of 2.8x

2 IPOs: Izawa Towel (buyout investment), Mirrativ (venture investment)

5.5

12.5

9.5

10.4

8.6

9.5

4.8

2.2

3.3

4.4

2.1

2.1

8.8

2.8

2.2

0.6

1.4

1.6

1.8

2.4

2.3

3.6

2.6

2.5

5.0

8.0

7.1

12.0



Breakdown of Capital Gains

[¥ billion]

Capital Gains

9.5

MOIC

2.8x

VC BO

9.5

3.0

6.5

26.03

[¥ billion]

Gross MOIC

Gain (loss) on sale, net (listed)

Gain (loss) on sale (unlisted)

Listed

17.2

16.3

12.9

8.9

12.2

13.4

7.0

Unrealized gains

Unlisted # IPOs

20.03 21.03 22.03 23.03 24.03 25.03 26.03

Losses (1.6) (0.1) (2.7) (0.1) (1.9) (0.9) (0.8)

Gains 3.9 2.5 3.3 1.9 5.5 2.5 2.2

3 4 4 4 6 8 2

[¥ billion]

Note: 1. Gain (loss) on sale (unlisted) includes other revenue related to portfolio companies.

  1. Gain (loss) on sale, net (listed) and gain (loss) on sale (unlisted) include impairment loss.

  2. Unrealized gains are valuation gains on listed operational investment securities.

With a balance of unlisted operational investment securities (acquisition cost) of ¥46.3 billion, fair value valuation is ¥57.5 billion. The following is a simulation of capital gains and earnings in the income statement assuming an MOIC at exit of 3x.

Simulation assuming MOIC at exit 3x the acquisition cost (domestic) Cumulative sales (simulation) Approx. ¥139.0B

Cumulative capital gains (simulation)

Approx. ¥92.5B

Cumulative earnings in the income statement

(simulation)

Approx. ¥100.0B*1

66.4

69.8

60.8

57.5

54.3

50.0

47.4

50.6

42.6

45.8

46.3

36.6

31.3

34.8

41.0

43.7

41.8

38.1 37.3

Domestic Average MOIC (results)*2

Acquisition cost-basis

2.4x

Marked-down valuation-basis

3.2x

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 26.03

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

Simulation for current balance at exit

*1 ¥100.0 billion: 92.5 + (46.3 - 37.3)

*2 Average MOIC over past 5 years



Additions to Investment Loss Reserves (Domestic Only; Overseas Funds Excluded)

Balance of investment loss reserves

Additions to investment loss reserves

Reserve ratio

[¥ billion]

18.2%

19.6%

19.3%

17.4%

16.8%

14.5%

13.5%

10.7

7.8

8.8

7.7

8.9

6.4

5.3 5.4

1.8

2.6

0.6

0.5

1.5

2.3



20.03 21.03 22.03 23.03 24.03 25.03 26.03

[¥ billion]

Note: 1. Investments in other funds are not included.

[¥ billion]

Balance of unlisted securities

36.6

42.6

47.4

54.3

50.6

45.8

46.3

Net reserve additions

0.2

2.4

(1.4)

4.3

(1.9)

(1.1)

1.2

No. of portfolio companies covered by

investment loss reserves

31

42

33

54

52

50

56

[Cos.]



(Ref.) Fair Value Valuation and Valuation Multiple of Unlisted Holdings

(Domestic Only; Overseas Funds Excluded)

Valuation of unlisted operational investment securities

Valuation multiple in holding period and assumption until exit

（As of the end of March 2026）

Valuation multiple by holding period

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

[¥ billion]

57.5

Avg. for the past 10 yrs.

（3.64x against marked-down valuation)

2.66

is shown below)



Fair value valuation multiple Valuation multiple after markdowns

1.44



1.31

45.8 46.3

50.0

38.1 37.3

1.00

Fair value valuation multiple

1.24

2.42

Avg. for the past 5 yrs.

（3.18x against marked-down valuation)

1.19 1.16

0.94

0.86

0.73



0.81

Valuation multiple

after markdown

0.45

Acquisition cost

Valuation after

markdowns

Fair value valuation

25.03 26.03 25.03 26.03 25.03 26.03

Acquisition Shares beingheld

Avg. MOIC *

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

years

25.03

26.03

1x 0.83x 1.09x

1x 0.82x 1.24x

0 yrs. → 4.3 yrs.**

6.6 yrs.***

72 Cos.

72 Cos.

35 Cos.

13 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, 2026.

  • Fair value valuation: Unaudited reference values estimated by JAFCO based on the International Accounting Standards, which are also disclosed to fund investors.

  • Valuation multiple: Valuation multiple against 1 as acquisition cost

Asset composition Domestic fund assets under

management and JAFCO's interests

[¥ billion]

Total assets

157.9

Investments

92.1

Operational investment securities

64.6

Listed

Unlisted

18.3

46.3

Investment loss reserves

(8.9)

Investment securities

36.5

Of which, JAFCO's interests in funds managed by the

transferred overseas subsidiaries

34.9

Cash and deposits

61.2

Of which, JAFCO's paid-in interests in funds

2.6

Of which, portion used for payment of income taxes payable,

accrued expenses, short-term interest-bearing debts, etc.

7.5

(Available cash and deposits

51.1 )

Other assets

4.6

*1 Including valuation difference in market value of unlisted holdings of ¥0.2 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

184.9

[¥ billion]

Listed operational investment securities

（market value)

23.0

Of which, JAFCO's interests

18.3

Unlisted operational investment securities*1

152.0

Of which, JAFCO's interests

46.3

Funds on hands

9.9

Of which, JAFCO's interests

2.6

Uncalled commitments to funds *2 21.0

Of which, JAFCO's interests 5.2

Share buybacks of ¥5 billion were completed on October 23. Net available cash after deducting uncalled commitments to funds, CBs, and long-term interest-bearing debts stood at ¥22.5 billion.

FY March 2026

Total

Cash and deposits

61.2

Fixed-purpose cash and deposits

10.0

Cash in funds (JAFCO's interests)

2.6

Forecast dividend payments

7.0

Accrued income taxes

0.3

Short-term interest-bearing debts・Accrued expenses

0.2

Available cash and deposits

51.1

[¥ billion]

A B

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

C＝AーB

Uncalled commitments to funds *

13.6

D

Available cash and deposits (after deducting uncalled commitments to funds)

37.5

CBs and long-term interest-bearing debts

15.0

E＝CーD

F

Net available cash (after deducting uncalled commitments to funds, CBs, and long-

term interest-bearing debts)

22.5

EーF

[¥ billion]

FY March 2025 Total

FY March 2026 Total

Change

Net assets

137.5

134.1

(3.4)

Capital stock/capital surplus

66.1

66.1

-

Retained earnings

57.8

53.3

(4.5)

Treasury shares

(3.7)

(4.0)

(0.4)





Total shareholders' equity

120.2

115.4

(4.8)

Valuation difference, etc.

17.3

18.7

1.4

Net assets per share*1 [yen]

2,521

2,549

28

Ref. After-tax fair value valuation of domestic portfolio companies [yen]

2,672

2,817

145

Share price*2 [yen]

2,073

2,260

188

Market capitalization*1

113.1

118.9

5.8

*Note: 1. Amount excluding treasury shares

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

Interests in overseas funds (JAFCO's interests in existing funds operated by the transferred Asian and US companies) are recorded to investment securities. With the transfers, reserves were reviewed and an additional ¥1.7 billion in investment loss reserves were recorded. Operating gain/loss*2 after the transfers are recorded to non-operating gain/loss.

8.7

15.3% 14.5%

13.7% 14.6%

12.0%

Reserve Ratio

Asia

USA

8.9%

16.7

11.8

12.7

16.4

17.2

18.9

18.2

[¥ billion]

10.3

14.0

5.4

5.7

8.4

9.5



Capital Gains (Sales - Investment Costs) Balance After Reserve and Reserve Ratio

17.0%

6.0

3.4

1.6

Capital gains



MOIC

2.1

[¥ billion]

1.1

1.0

0.2

0.6

0.8

2.2

0.7

[times]

20.03 21.03 22.03 23.03 24.03 25.03 26.03

(0.4)

(0.9)

Balance of Overseas Fund Interests / Uncalled Commitments

(1.4)

20.03 21.03 22.03 23.03 24.03 25.03 26.03

[¥ billion]

Paid-in interests in funds

Asia

16.7

34.9

USA

18.2

8.4

（balance of investment securities）

Uncalled commitments to funds (cash and deposits)

*1 JAFCO's interests in existing funds operated by the transferred Asian *2 Capital gains - (Fund management fees + Success fees) - Additions to

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. No change to ¥66.5 year-end (¥66.5 interim) and ¥133 annual dividends for FY March 2026.

Projected (minimum) dividends for FY March 2027 are ¥133 (¥66.5 interim and ¥66.5 year-end).



Pay out the greater of 6% DOE*5 or a 50% payout ratio

Dividend policy

285.7％

Total return ratio 107.6% Dividend per share

Interim: ¥66.5

Year-end: ¥66.5 Annual: ¥133.0

FY March 2026

266.5%

(¥39.5 billion)

(¥61.3 billion)

124.6%

102.3%*4

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

107.6%

Total return ratio

(Amount of share buyback)

40.0%

Payout ratio

17.03

18.03

19.03

20.03

21.03

22.03

23.03

24.03

25.03

26.03

Dividend per share []

33.3

35.7

37.3

39.3

46.0

51.0

150.0 *1

69.0

88.0

133.0

Total dividends paid [B]

4.44

3.31

3.46

3.65

4.06

3.64

8.16

3.76

3.60

7.02

13.7%

34.1%

30.8%

36.9%

(¥10.2 billion) 11.0%

26.5%

(¥42.4 billion) 25.6%

(¥5.0 billion)

50.1% 50.1%

Dividend policy

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

  1. ¥150

    Flexible distribution with a focus on continuity

    ３% DOE*2

    *2 Average of the beginning and end of

    The greater of either 3% DOE or 50% of net income*3

    *3 The Company's basic dividend policy from FY March 2024 to FY

  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

the period. Shareholders' equity does

not include unrealized gain (loss)

March 2025 has been to pay the greater of 3% of shareholders' equity (initial and term-end average value) or 50% of net income.

TOB, by the number of the Company's shares outstanding on the record date of the dividend

*4 Share buybacks are based on FY March 2025 results and are



Section 2 Management Mindful of Capital Costs and the Stock Price



Management Mindful of Capital Costs and the Stock Price: Overview

Policy

With our shift to focusing on domestic investment, we will partially revise our Basic Policy for Enhancing Corporate Value* and advance efforts toward achieving targets

Financial target: ROE of 15%-20％

Major initiatives

  • Focusing on domestic investment to achieve targets; Completed transfer of Asia and US corporations; Formulated new shareholder returns policy to further strengthen shareholder returns

  • Established the flagship SV8 Fund Series and started fundraising

  • Dividends for FY March 2026: ¥66.5 interim, ¥66.5 year-end, ¥133 annual (planned) Total return ratio for FY March 2026: 107.6%

  • Improving outlook and stability by continuing interim dividends and announcing minimum dividend amount as projected dividends at the beginning of the fiscal year

Current situation

Measures

  • Promote growth strategy and improve capital efficiency by focusing on domestic investment

  • Promote growth strategy by increasing the fund size backed by market growth in venture and buyout investment

  • Promote the reduction of owned assets and improvement of capital efficiency by reducing ratio of investments in funds

  • Implement stable, profit-based dividends by paying out the greater of either 6% DOE (shareholders' equity at end of previous period) or a 50% payout ratio, and implement flexible share buybacks

  • Further enhancement of stakeholder engagement

  • Advance sustainable management practices

  • Our cost of shareholders' equity is perceived to be

    roughly 7%

  • In dialogue with investors, most agreed with the above

level but some suggested it may be higher

  • Average adjusted ROE** over the past 5 years was 5.4% (down 0.6 pts YoY)

ROE for 2026.03: 4.8％

ROE for 2025.03: 6.9％

  • Average PBR over the past 5 years was 0.8x (unchanged YoY)

PBR for 2026.03: 0.9x (up 0.1 pts YoY)

*Basic Policy for Enhancing Corporate Value announced **ROE excluding extraordinary income/loss from the sale of NRI shares, etc. (excluding period in the red)



Current Assessment of ROE and Cost of Shareholders' Equity & Targets for Realizing Management

Mindful of Capital Costs and the Stock Price

The average adjusted ROE** over the past 5 years (excl. when in the red) was 5.4%, compared to the level of cost of shareholders' equity of roughly 7%. We are focusing on domestic investment and revising shareholder returns, continuing efforts aimed at achieving an ROE that exceeds the cost of equity to reach our target of 15-20%. We will gradually promote initiatives to achieve our medium- to long-term goals in line with our approx. 3.5 year cycle of fund formation.

ROE Results and Cost of Shareholders' Equity

Cost of shareholders' equity

About 7％

Adjusted ROE

5.4％

(5-year average)

＜

Image of financial targets and management indices within the framework of the basic policy for improving corporate value

17.03 18.03 19.03 20.03 21.03 22.03 23.03 24.03 25.03 26.03



Financial target: ROE of 15%-20％

2028.03-2030.03

2031.03-2033.03

Ordinary income

¥20.0 billion

¥26.0 billion

Net income

¥14.0 billion

¥18.0 billion

Net assets

¥130.0 billion

¥115.0 billion

ROE level

10-15％

15-20％

15%

10%

5%

0%

-5%

-10%

Adjusted ROE Cost of shareholders' equity(market cap-basis)

*Approximation considering the CAPM-based 5-year average cost of shareholders' equity and market cap-based5-year average cost of shareholders' equity (excluding when in the red).

  • Cost of shareholders' equity (CAPM-basis) = Risk-free rate (risk-free interest rate of safe assets; based on 10-year government bonds) + Beta (β) sensitivity (risk specific to JAFCO) × Risk premium (rate of excess returns expected on equity investment; based on past stock market returns)

  • Cost of shareholders' equity (market cap-basis) = (Net income - Extraordinary income (loss) × 70%) / Market capitalization

    ** Adjusted ROE = (Net income - Extraordinary income (loss) × 70%) / Net assets



    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 efforts to increase investment performance.

320.0

250.0

3.9

20%

3.5-4.0

2028.03-

2030.03

[¥ billion]

2022.03

2023.03

2024.03

2025.03 2026.03

Funds

Total capital commitments*1 (AUM)

215.0

289.4

312.8

312.8 312.8

(Domestic)

External capital commitments*2

123.8

139.9

169.3

173.8 173.8

Annual management fees*3

2.2

2.6

3.8

3.3 3.1

JAFCO's investment ratio in new

domestic funds

42%

41%

36%

35% 35%

Annual SG&A expenses (excl. business

tax)

2.9

3.4

3.3

3.6 3.6

MOIC

Multiple on Invested Capital (MOIC)

3.3x

2.1x

2.1x

2.2x 2.8x

(Domestic)

5-year average: 2.4x

Results

Medium-term targets

Long-term targets

How to Interpret the Indices for Our Medium- to Long-Term Targets

370.0

290.0

4.2

20%

3.5-4.0

2031.03-

2033.03

  • We will gradually implement initiatives to achieve our medium- to long-term goals in line with our approx. 3.5 year cycle of fund formation.

  • External capital commitments among total capital commitments

    of new 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

  • Target of 3.0x for MOIC of domestic funds (FY March 2026 onwards)

    3x

3x

  • Necessary funds will decrease as we will only target domestic

    funds for investment; Net assets will also decrease

    30.0

    65.0

    115.0

25.0

80.0

130.0

  • We will hold our interests in Asian and US funds under management until maturity

    26.0

    18.0

    15-20%

  • Implement stable dividends aligned with profit growth by paying out the greater of either 6% DOE (shareholder's equity at the end of the previous fiscal year) or a 50% payout ratio

  • Amounts in excess of necessary funds will be flexibly used for

share buybacks

60-100%

or more

Aiming to achieve target ROE of 15-20%

60-100%

or more

20.0

14.0

10-15%

Financial structure

Available cash and deposits*4

31.8

24.7

47.4

48.3

51.3

Operating investment securities

(incl. listed cos. / after markdown)

41.1

43.7

41.7

38.1

37.3

Net assets

192.6

126.7

133.5

137.5

134.1

Profit level / capital

Ordinary income level

18.1

(1.2)

9.4

13.2

5.9

efficiency

Net income level

14.8

42.5

*5

8.3

9.6

6.6

ROE level

7.4%

26.6%

*5

6.4%

7.1%

4.8%

Shareholder returns

Effective total payout ratio*6

286%

125%

50%

102%

108%

Notes: 1. Total capital commitments: The total amount of capital commitments of all JAFCO-managed funds in Japan.

  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.

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

  3. 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.

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

  5. 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. Results

    25

indicated are consolidated figures.



Domestic and Overseas Investments and Business

Excerpt from the Earnings Presentation disclosed on April 23, 2025

We have decided to focus on domestic investment and withdraw from overseas investment to promote the growth strategy and improve capital efficiency.

With the reform of the business portfolio, we aim to enhance corporate value with profit growth, evolution toward a stable revenue structure, and improved capital efficiency.

Major indices

Investment performance (ROI)

Ratio of external investors' interests

Revenue status

Core income

SV7 fund (¥97.8 billion) was 80% external investment; Core income is generally in balance

Capital gains

While subject to the impact of the market, a degree of capital gains are continually realized through several IPOs, M&A, etc.

Initial targets

2.5x or more 80％

Results

Domestic

Domestic ROI exceeds 2.5x External investment accounts for

80% of most recent domestic funds

10-year average*

5-year average**

Fund name

External capital

contribution

Increase size of domestic funds in the medium to long term and aim for 80% external capital contribution

Average ROI for domestic investment:

3.0x or more

Target level going forward

Core income

Requires a considerable amount of our investment; Core income remains in the negative

Capital gains

Relies heavily on a small number of portfolio companies; ROI is relatively lower than domestic performance

Overseas

Japan

SV６ Series

SV７ Series

66%

80%

Asia

JAFCO ASIA S-8

Fund Series

38%

US

Icon Ventures VII, L.P.

57%

Overall 2.2x 2.2x

Domestic

2.6x 2.6x

Overseas

1.6x 1.3x

Promote corporate value enhancement by focusing on domestic investment

Aim to enhance corporate value by raising ROE to a 15%-20% level and reducing capital costs

Total return ratio

60-100% or more

Investment

performance

（ROI*）

3x or more (Average over past 5 yrs for domestic funds: 2.6x)

Increase the size of new funds and

increase the ratio of

external

capital commitments to

80%

Basic policy for enhancing corporate value

Improve capital efficiency

Promote growth strategy

Increase of ROE

Increase of PER

Improve market valuation

Target

ROE: 15-20％

Improve capital yield

Increase of

stock price

Improveme

nt of PBR

Target

More than 1x

Realize shareholder returns through stable dividends in line with profit growth and flexible share buybacks

Reduce necessary funds by reducing the percentage of our own investment

Reduce volatility by optimizing the portfolio

Accumulate success fees and capital gains as well as increase growth potential by improving investment performance

Realize stable surplus of core income by increasing the fund size backed by market growth in venture and buyout investment and increasing the ratio of external capital commitments (accumulation of fund management fees)

Policy

Measures

Primary targets

Advance sustainable management practices

Further enhancement of stakeholder engagement

Reduce cost of

shareholders' equity

*ROI: Revenue from operational investment securities ÷ Cost of operational investment securities

We are promoting initiatives for achieving our targets in line with the Basic Policy for Enhancing Corporate Value

Primary targets

Initiatives for achieving targets

Enhancing investment management capabilities

Further evolution of highly selective, intensive investment

  • Develop seed-stage deals in view of pre- and post-startup stages

  • Promote exits (not just IPOs) and establish approaches

  • Create synergy between venture and buyout investment

  • Expand buyout investments

P 35-38

Strengthening of corporate value enhancement efforts for portfolio companies

  • Develop startup support (customer acquisition, human resources,

    and back-office development)

  • Expand ecosystem for entrepreneurship and new business creation

P 39

Enhancing fundraising capabilities

  • Fund formation and fundraising once every 3.5 years; Established flagship fund SV8 Series update

  • Increase the fund size backed by market growth in VC and BO investments

  • Efforts aimed at expanding the investor base

  • Strengthen relationships with investors

P 41

Strengthening the organizational foundation

  • Expand systems for recruiting and developing diverse personnel

P 40

Shareholder returns

  • Pay out the greater of either 6% of shareholders' equity or a 50% payout ratio as dividends

  • Consider share buybacks for amounts in excess of necessary funds

P 22

Further enhancement of stakeholder engagement

P 42-44

Advance sustainable management practices

Investment performance

（ROI*）

3x or more (Average over past 5 yrs for domestic funds: 2.6x)

Increase the size of new funds and

increase the ratio of external

capital commitments to

80%

Total return ratio

60-100% or more

*ROI: Revenue from operational investment securities ÷ Cost of operational investment securities



Section 3 Fund Management Status

Japan

Investment and business development teams collaborate to enhance portfolio company value and achieve exits

Venture Investment Team

43 members

Buyout Investment Team

22 members



Business Development Team

15 members

Balance of unlisted holdings: ¥151.9 billion / 192 companies (Venture: 173 / Buyout: 19)

JAFCO's interest: ¥46.3 billion

Exchange rate: End of March 2026 US$1 = ¥159.88 Note: 1. Numbers of personnel are as of April 1, 2026.

  1. Balance of unlisted holdings includes funds.

  2. Balance of unlisted holdings are as of March 31, 2026 (acquisition cost basis)

Balance of unlisted holdings



24.5

152.0

188.7 Fair value (ref.)

[¥ billion]

99.2

111.2

130.4 134.2

19.8

23.3

176

144.0

19.0

183 192

[Cos.]

Markdowns

82.3

11.1

16.5

142

126

167

13.7

151

114.4

125.0

127.6

Marked-down valuation No. of cos.

71.3 82.7

97.6 107.2

20.03 21.03 22.03 23.03 24.03 25.03 26.03

26.03

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 = ¥159.88 for all periods

27.9

28.0

24.9

23.2

21.5

22.6

12.4

11.0

19.4

19.2

19.3

12.5

15.5

16.8

17.0

13.4

6.0

9.0

5.8

3.9

5.7

[¥ billion]

Buyout

VC

20.03 21.03 22.03 23.03 24.03 25.03 26.03

Note: Figures are rounded to the nearest decimal place.

Made new investments in 16 startup companies in Japan totaling ¥6.5 billion

[¥ billion]

19.8%

15.2%

15.9%

15.5%

14.8%

12.6%

11.5%

0.78

0.35

0.40

0.41

0.41

0.40

0.49



[Stake]

Average investment amount

Average shareholding (incl. dilutive shares)

(incl. dilutive shares)

20.03

21.03

22.03

23.03

24.03

25.03

26.03

No. of cos.

21

19

29

22

25

22

16

valuation

[¥ billion]

5.15

2.54

2.75

2.74

4.22

2.79

2.04

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 4 Initiatives for Enhancing Corporate Value

We are committed to strengthening our investment management capabilities and fundraising capabilities, which are the source of our

value, as well as the organizational foundation which support these. We will improve ROI* (investment management capabilities) to make our funds attractive as financial products and increase the fund size and external funding (fundraising capabilities).

Purpose

Fueling perpetual growth; investing in bold visions



Fundraising capabilities

Investment management capabilities

Enhancing Corporate value

Continuously improve investment performance under our policy of highly selective, intensive investment

Strengthen fundraising from existing and new fund investors to ensure stable increases in fund size

Committed contributions by individuals with diverse backgrounds Increase our ability to reproduce success by systematizing knowledge sharing and organizational, seamless support of portfolio companies

Organizational foundation

Based on an outstanding volume of corporate interaction as we identify over 4,000 deals each year, we aim to reproduce success experience in investing in companies with high growth potential in earlier phases by implementing strict selection criteria.

New contacts

4,028 cos.

43

Investment professionals

Rigorous

selection

Partners

involvement / screening

428 cos.

6

Partners

Rigorous

selection

New

investments

16 cos.

Over 40 investment professionals aim to demonstrate the reproducibility of success in the process of identifying investment candidates by conducting quality deal sourcing and thinking through future business opportunities.

V7 (invested in 76 cos.) Composition by Investment Stage

2.6%

35.5%

61.8%

Seed Early Middle Later

Continuous contact with several hundred startups Organizational support to ensure that no promising startups slip through from seed-stage investment targets

Note: 1 No. of companies (cos.) shows the total number for FY March 2026. No. of personnel is as of April 1, 2026.

2. Numbers of companies and investment professionals are figures for venture investment in Japan.

By investing in companies that create social value over the long term, services that capture current trends, and attractive entrepreneurs, we contribute to the creation and growth of innovative new businesses and the realization of a sustainable society

Development of anti-cancer drugs

Development and provision of hospital-patient communication tools

Consulting services for the manufacturing industry using process informatics

Research and development of phage

therapy

Provision of SolvifAI, an AI SaaS tool that supports requirements definition and project management in IT and DX projects

Condominium renovation estimates and contractor matching services

Development and

manufacturing of unmanned surface vehicles

Development and

provision of defense and security products

Investment that meets changes in social values

Retail brand business

such as involving the gift sweets brand Yokohama Vanilla

Planning, management,

and production of short video social media accounts

Investment in entertainment and IP businesses



Investment addressing change and growth of demand and sector expansion; Investment that drives transformation of existing industries



In FY March 2026, there were 2 IPOs from venture and buyout investments and 2 M&A exits.

IPO

M&A

BO

VC

BO

BO



Izawa Towel Co., Ltd.

Mirrativ, Inc.

PAPABUBBLE JAPAN Inc.

Waterfront Co., Ltd.

Planning, manufacture, and sale of towel products

Operation of Mirrativ, a communication service centered on smartphone game streaming and live broadcasting

Operation of several brands of sweets stores including PAPABUBBLE

Design, manufacture, and wholesale of umbrellas

Initial investment: August 2021

Initial investment: February 2019

Initial investment: October 2017

Initial investment: June 2020

EXIT: June 2025

EXIT: December 2025

EXIT: August 2025

EXIT: December 2025

Each year, we reinforce our support structures for portfolio companies in areas of recruitment, organizational development, customer referrals, and back-office development as we believe our deep commitment to key issues in unlisted companies contributes to acceleration of their business growth.

Most pressing issues

Support details

Results for FY March 2026

Recruitment and organizational development

  • C-level and other executive referrals

  • Organizational development consulting

  • Executive coaching

Companies supported in 74

organizational/HR issues

cos.

Customer referrals

(marketing/support)

  • Lead acquisition support

  • Tie-up arrangements

  • PoC project referrals

Business matching 403

matches

Back-office

development

  • IPO consulting

  • Administrative division establishment

  • Tool selection

IPO consulting 42

cos.

In order to advance our growth strategy, we are establishing mechanisms for recruiting and training diverse personnel

Recruitment

Expanding the workforce

Recruitment in FY March 2026

System



Enhancing the foundation for human capital development

Organization

Strengthening professional talent

  • Newly establish the Organization & Human Capital Division

  • Review the compensation system

FY March 2020 FY March 2026

No. of employees (in Japan)

102 133

Men Women Total

New graduate

0

2

+2

Mid-career

11

6

+17

Establish framework to further strengthen human capital development

Enhance competitiveness in recruiting

Human capital indices as of end of FY March 2026

Ratio of women employees

27.1％

(Target: 1/3 or more)

Ratio of mid-career management hires

57.0%

(Target: 1/3 or more)

*Figures for employees are cumulative figures for the fiscal year ended

March 2026 (domestic only).

Composition by grade

Associate

24%

Management

22% 28%

39%

37%

51%

Professional



SUMMARY OF FINANCIAL RESULTS