JAFCO : Financial Results for the Nine Months Ended December 31, 2024

Published January 29, 2025 at 3:05 a.m. UTC

Source: MarketScreener

JAFCO Group Co., Ltd.

The original disclosure in Japanese was released on January 29, 2025 at 12:00 (GMT+9).

This is a summary translation of a press release made in Japanese for convenience only.

JAFCO Group Co., Ltd. (Ticker: 8595)	Contact: Investor Relations
1-23-1 Toranomon, Minato-ku,	Tel: +81-50-3734-2025
Tokyo 105-6324 Japan	[email protected]
http://www.jafco.co.jp/english/
	January 29, 2025

Financial Results for the Nine Months Ended December 31, 2024

[Japanese GAAP]

(Summary of Japanese Announcement)

(Japanese yen figures less than one million yen are rounded down)

1. Consolidated Performance for the Nine months ended December 31, 2024 (April 1, 2024 - December 31, 2024)

Consolidated Operating Results

(Figures with % indicate the rate of change from the same period of the previous fiscal year)

Net sales

Operating income

Ordinary income

Profit attributable to

[¥ million] [%]

[¥ million]

[%]

[¥ million]

[%]

JAFCO Group Co.,

Ltd. stockholders

[¥ million]

[%]

For the nine months ended

25,355

73.9

11,171

149.6

12,178

148.7

8,711

99.7

December 31, 2024

For the nine months ended

14,579

49.9

4,475

4,896

501.0

4,361

(90.2)

December 31, 2023

Note:

Comprehensive income

Nine months ended December 31, 2024:

¥10,023 million [24.3%]

Nine months ended December 31, 2023:

¥8,062 million [-%]

Profit per share

Fully diluted net

income per share

[¥]

For

the

nine

months

159.76

ended December 31, 2024

For

the

nine

months

80.11

ended December 31, 2023

(2) Consolidated Financial Position

		Total assets	Net assets		Equity ratio	Net assets
		[¥ million]	[¥ million]		[%]	per share [¥]

As of December 31, 2024		171,172		142,325		83.1	2,608.23

As of March 31, 2024		165,540		137,639		83.1	2,526.26

(Reference) Shareholders' equity	As of December 31, 2024:	¥142,325 million
		As of March 31, 2024:	¥137,639 million

JAFCO Group Co., Ltd.

2. Dividends

		Dividend per share [¥]

(Record date)	End of 1Q	End of 2Q	End of 3Q	End of	Total
the year


For the year ended	-	-	-	69.00	69.00
March 31, 2024


For the year ending	-	32.00	-
March 31, 2025


For the year ending				TBD	TBD
March 31, 2025 (forecast) *

Notes: 1. No changes have been made to the most recently announced dividend forecast.

2. Starting in this fiscal year, the Company has begun paying interim dividends based on 1.5% of the preceding fiscal year's shareholders' equity.

Also, while the dividend forecast for the end of the fiscal year is yet to be determined, no change has been made to our policy, based on the Basic Policy for Enhancing Corporate Value announced in December 2022, to pay dividends amounting to the greater of either 3% of shareholders' equity (initial and term-end average value) or 50% of net income. Therefore, year-end dividends for the fiscal year ending March 31, 2025 shall be calculated by subtracting interim dividends from the total dividend amount calculated based on the above policy and implemented with March 31, 2025 as the record date.

3. Business Forecasts for the Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)

Due to the nature of the Company's business, domestic and overseas stock markets as well as the IPO market may cause large fluctuations in its earnings level, as a result of which it is difficult to make meaningful performance forecasts. Therefore, instead of announcing financial forecasts, the Company makes timely disclosure of quarterly financial results.

*Other Information

Significant changes in scope of consolidation during this period: None
Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
Changes in accounting principles, accounting estimates and correction of prior period errors

- Changes in accounting principles due to revisions to accounting standards: None
  ② Changes in accounting principles other than ① : None
  ③ Changes in accounting estimates: None
  ④ Correction of prior period errors: None
Number of issued shares (common stock)
- Number of issued shares (including treasury shares)

	As of December 31, 2024:	56,060,000	As of March 31, 2024:	56,060,000
②	Number of treasury shares
	As of December 31, 2024:	1,492,229	As of March 31, 2024:	1,576,350
③	Average number of shares
	Nine months ended December 31, 2024:	54,528,320
	Nine months ended December 31, 2023:	54,440,899

*Review of the Japanese-language originals of the attached consolidated quarterly consolidated financial statements by certified public accountants or an audit firm: None

*Cautionary statements with respect to forward-looking statements and other notes

(Access to the financial supplement materials)

The presentation material for the nine months ended December 31, 2024 will be released on the Company's website on January 29, 2025.

*Note to XBRL

Please note that the names of the English accounts contained in XBRL data, which are available through EDINET and TDNet, may be different from those of the English accounts in our financial statements.

JAFCO Group Co., Ltd.

1. Outline of Operating Results

(1) Outline of Operating Results

In the consolidated fiscal nine months ended December 31, 2024, the Company and its consolidated subsidiaries (hereinafter collectively referred to as the "Company Group") posted net sales of ¥25,355 million, (up 73.9% year- on-year from ¥14,579 million), operating income of ¥11,171 million (up 149.6% year-on-year from ¥4,475 million), ordinary income of ¥12,178 million (up 148.7% year-on-year from ¥4,896 million), and profit attributable to JAFCO Group Co., Ltd. stockholders of ¥8,711 million (up 99.7% year-on-year from ¥4,361 million).

During the period under review, there were seven IPOs from the Company Group's portfolio (seven in Japan and none overseas), and there was a significant year-on-year increase in capital gains such as due to the sale of shares with the new IPOs.

Success fees also rose from the same period last year due to progress made for the exits of SV4 Series and JAFCO Asia Technology Fund VI L.P.

Also, the Company transferred its interests in funds to a recently launched investment trust which it developed jointly with Nomura Asset Management Co., Ltd. in August 2024 and which incorporates the Company's funds.

Because the Company's earnings may fluctuate widely for each three-month period due to the nature of its business, we also provide comparison of annualized third-quarter results and the previous full-year results.

(Outline of Capital Gains)

During the period under review, there were seven IPOs from the Company Group's portfolio (seven in Japan and none overseas), and there was a significant year-on-year increase in capital gains due to the sale of shares through the new IPOs and the sale of unlisted securities.

					(Millions of yen)

		For the year ended	For the nine	For the nine	Annualized
		months ended	months ended
		March 31, 2024	December 31,	December 31,	comparison
		(A)	2023	2024	[(B)/3x4]/(A) (%)
				(B)
Revenues from operational	19,013	10,389	20,586	144.4
	investment securities (1)

	Proceeds from sale of securities	18,890	10,279	20,270	143.1
	Dividend and interest income	123	109	316	342.4
Cost of operational investment securities	11,076	5,452	9,656	116.3
(2)

	Cost of securities sold	10,041	4,417	9,656	128.2
	Impairment	1,034	1,034	-	-

Capital gains (1) - (2)	7,937	4,937	10,929	183.6
Multiple (1) / (2)	1.72	1.91	2.13	-


Capital gains on listed shares	6,010	2,567	7,568	167.9

Capital gains on unlisted shares	1,927	2,369	3,361	232.5

	Gains on sale	5,063	4,037	4,526	119.2
	Losses on sale	3,136	1,667	1,165	49.5

JAFCO Group Co., Ltd.

(Outline of Investment Loss Reserves)

In the consolidated fiscal nine months ended December 31, 2024, the reversal of investment loss reserves exceeded the additions and the balance of investment loss reserves decreased from the end of the previous fiscal year. The ratio of reserves to the balance of unlisted operational investment securities was the same as the end of the previous fiscal year．

									(Millions of yen)

	For the year ended	For the nine months		For the nine months	Annualized
			ended
	March 31, 2024	ended				comparison
			December 31, 2024
	(A)	December 31, 2023			[(B)/3x4]/(A) (%)
				(B)

Additions to investment loss	2,784		2,058				2,545	121.9
reserves (1)


Reversal of investment loss	3,560		1,814				2,789	104.4
reserves (2)

Net additions = (1)-(2)	(775)		243				(243)	-
(minus figures are reversals)


									(Millions of yen)

			As of March 31, 2024		As of December 31, 2024

Balance of investment loss reserves			13,754			13,529

Ratio to all unlisted operational investment				16.0%			16.0%
securities

JAFCO Group Co., Ltd.

(Outline of Balance of Operational Investment Securities)

In the consolidated fiscal nine months ended December 31, 2024, the balance of operational investment securities increased due to the impact of new IPOs of portfolio companies, market value fluctuations of listed operational investment securities, and foreign exchange rates.

								(Millions of yen)

				As of March 31, 2024		As of December 31, 2024

Difference between acquisition cost and market value of		15,698			17,187
listed operational investment securities

	Securities whose market value			15,871			17,348
	exceeds acquisition cost


	Securities whose market value			(172)			(161)
	falls below acquisition cost


								(Millions of yen)

			For the year	For the nine months	For the nine months
			ended	ended			ended
			March 31, 2024	December 31, 2023	December 31, 2024
(Reversal of) Unrealized losses on		(13)		(15)	(12)
operational investment securities

Balance of Operational Investment Securities			(Millions of yen)
	As of March 31, 2024	As of December 31, 2024

	Acquisition cost	Figures on the		Figures on the
	Acquisition cost	quarterly
	consolidated B/S
			consolidated B/S


Listed	2,473	18,172	3,795	20,982

Unlisted	77,445	85,748	76,283	84,799

Total	79,919	103,921	80,078	105,782

JAFCO Group Co., Ltd.

(Outline of Fund Operations)

In the consolidated fiscal nine months ended December 31, 2024, success fees rose from the same period last year due to progress made for the exits of SV4 Series and JAFCO Asia Technology Fund VI L.P.

					(Millions of yen)
		For the year	For the nine months	For the nine months	Annualized
		ended	ended
		ended	comparison
		March 31, 2024	December 31, 2024
		December 31, 2023	[(B)/3x4]/(A) (%)
		(A)	(B)

Income from partnership	5,425	4,187	4,762	117.1
management

	Management fees	4,837	3,778	3,250	89.6

	Success fees	587	408	1,511	343.2

Note: Management fees and success fees are based on the commitment amount excluding the Company Group's interests.

Outline of the Quarter's Financial Condition (Outline of Assets, Liabilities, and Net Assets)

In the consolidated fiscal nine months ended December 31, 2024, total assets and net assets increased mainly due to new IPOs of portfolio companies and the associated sale of operational investment securities. Also, total liabilities decreased mainly due to an increase in income taxes payable.

			(Millions of yen)
		As of March 31, 2024	As of December 31, 2024

Total assets	165,540	171,172

	Current assets	160,489	166,297

	Non-current assets	5,051	4,874

Total liabilities	27,900	28,847

	Current liabilities	6,566	7,010

	Non-current liabilities	21,334	21,836

Net assets	137,639	142,325

(3) Consolidated Financial Forecasts and Other Forward-Looking Statements

JAFCO Group Co., Ltd.

2. Consolidated Financial Statements and Main Notes

(1) Consolidated Balance Sheets

			(Millions of yen)
		As of March 31, 2024	As of December 31, 2024

Assets
Current assets
Cash and deposits	*(i) 67,606	*(i) 72,807
Operational investment securities	103,921	105,782
Investment loss reserves	(13,754)	(13,529)
Other	2,715	1,237
Total current assets	160,489	166,297
Non-current assets
Property, plant and equipment
Buildings, net	362	301
Furniture and fixture	56	55
Total property, plant and equipment	419	357
Intangible assets
Software	45	23
Total intangible assets	45	23
Investments and other assets
Investment securities	3,581	3,557
Long-term loans receivable	279	275
Deferred tax assets	349	292
Other	376	368
Total investments and other assets	4,586	4,494
Total non-current assets	5,051	4,874
Total assets		165,540	171,172

*see note (i) on P. 11

JAFCO Group Co., Ltd.

			(Millions of yen)
		As of March 31, 2024	As of December 31, 2024

Liabilities
Current liabilities
Current portion of long-term borrowings	115	134
Income taxes payable	1,709	3,311
Provision for bonuses	312	414
Allowance for extraordinary compensation for	56	－
directors

Other	4,372	3,150
Total current liabilities	6,566	7,010
Non-current liabilities
Convertible-bond-type bonds with share	15,000	15,000
acquisition rights

Long-term borrowings	－	66
Retirement benefit liability	349	349
Deferred tax liabilities	5,787	6,265
Other	197	155
Total non-current liabilities	21,334	21,836
Total liabilities	27,900	28,847
Net assets
Shareholders' equity
Share capital	33,251	33,251
Capital surplus	32,806	32,806
Retained earnings	54,424	57,590
Treasury shares	(3,871)	(3,664)
Total shareholders' equity	116,611	119,983
Accumulated other comprehensive income
Valuation difference on available-for-sale	18,150	19,188
securities

Foreign currency translation adjustment	2,878	3,152
Total accumulated other comprehensive	21,028	22,341
income

Total net assets	137,639	142,325
Total liabilities and net assets		165,540	171,172

JAFCO Group Co., Ltd.

(2) Consolidated Statements of Income and Consolidated Statement of Comprehensive Income (Consolidated Statements of Income)

		(Millions of yen)
	Nine months ended	Nine months ended
	December 31, 2023	December 31, 2024

Net sales
Revenue from operational investment securities	10,389	20,586
Income from investment partnership management	4,187	4,762
Other sales	2	6
Total net sales	14,579	25,355
Cost of sales
Cost of operational investment securities	5,452	9,656
Other costs	947	1,034
Total cost of sales	6,399	10,691
Gross profit	8,180	14,664
(Reversal of) Additions to investment loss reserves	243	(243)
(Reversal of) unrealized losses on operational	(15)	(12)
investment securities

Gross profit - net	7,952	14,920
Selling, general and administrative expenses	3,476	3,748
Operating profit	4,475	11,171

Non-operating income

Interest income

Dividend income

Foreign exchange gains

Gain on investment in other funds Miscellaneous income

Total non-operating income

Non-operating expenses

Interest expenses

Foreign exchange losses

Bond issuance costs

Miscellaneous losses

264	227
69	566
－	170
158	34
63	24
555	1,024
0	0

42－

89－

116

Total non-operating expenses	134	16
Ordinary profit	4,896	12,178
Extraordinary income
Total extraordinary income	－	－
Extraordinary losses
Total extraordinary losses	－	－
Profit before income taxes	4,896	12,178
Income taxes - current	566	3,533
Income taxes - deferred	(31)	(65)
Total income taxes	534	3,467
Profit	4,361	8,711
Profit attributable to non-controlling interests	－	－
Profit attributable to JAFCO Group Co., Ltd.	4,361	8,711
stockholders

JAFCO Group Co., Ltd.

(Consolidated Statements of Comprehensive Income)

		(Millions of yen)
	Nine months ended	Nine months ended
	December 31, 2023	December 31, 2024

Profit	4,361	8,711
Other comprehensive income
Valuation difference on available-for-sale	3,293	1,038
securities

Foreign currency translation adjustment

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to JAFCO Group Co., Ltd. stockholders

Comprehensive income attributable to non- controlling interests

408	273
3,701	1,312
8,062	10,023
8,062	10,023

－	－