JAFCO : Financial Results for the Year Ended March 31, 2025

Published April 23, 2025 at 3:16 a.m. UTC

Source: MarketScreener

JAFCO Group Co., Ltd.

The original disclosure in Japanese was released on April 23, 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/
	April 23, 2025

Financial Results for the Year Ended March 31, 2025

[Japanese GAAP]

(Summary of Japanese Announcement)

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

1. Consolidated Performance for the Year Ended March 31, 2025 (April 1, 2024 - March 31, 2025)

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 year ended March	29,685	21.4	12,520		53.1			13,205	49.7		9,576	27.8
31, 2025

For the year ended March	24,443	73.7	8,175		-			8,822	-		7,494	(81.5)
31, 2024


Note:	Comprehensive income	Year ended March 31, 2025:	¥8,824 million [(40.6)%]
			Year ended March 31, 2024:	¥14,868 million [-%]

		Net income per		Fully diluted net	Return		Ordinary income/	Operating income/
			income per share	on equity		total assets		net sales
			share [¥]
					[¥]		[%]				[%]		[%]


For the year ended		175.59			-		6.9				7.9		42.2
March 31, 2025

For the year ended		137.64			-		5.6				5.4		33.4
March 31, 2024


(Ref.) Equity method investment gain or loss: Year ended Mar. 31, 2025: ¥- million	Year ended Mar. 31, 2024: ¥- million

(2) Consolidated Financial Position

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

As of March 31, 2025	169,970		141,126	83.0	2,586.26

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

(Reference) Shareholders' equity	As of March 31, 2025:	¥141,126 million
	As of March 31, 2024:	¥137,639 million

JAFCO Group Co., Ltd.

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financial activities	at end of period
	[¥ million]	[¥ million]	[¥ million]	[¥ million]
For the year ended	10,442	134	(5,447)	72,486
March 31, 2025

For the year ended	(9,570)	(100)	6,836	67,606
March 31, 2024

JAFCO Group Co., Ltd.

2. Dividends

	Dividend per share [¥]		Total		Dividend /
				dividends	Payout ratio	shareholders'
		End of
(Record date)	End of 1Q End of 2Q End of 3Q	Total	paid	[consolidated]	equity
the year	[¥ million]		[consolidated]

For the year ended	-	-	-	69.00	69.00	3,759	50.1	3.2
March 31, 2024


For the year ended	-	32.00	-	56.00	88.00	4,801	50.1	4.0
March 31, 2025


For the year ending	-	66.50	-	66.50	133.00		-
March 31, 2026 (Forecast)	(Minimum)

Notes: 1. Dividend / shareholders' equity: Dividends per share divided by shareholders' equity (initial and term-end average value).

2. The forecast of dividends for the fiscal year ended March 31, 2025 and the fiscal year ending March 31, 2026 are expected or forecast amounts.

(Regarding the amount of year-end dividends for the fiscal year ended March 2025)

Annual dividends for the fiscal year ended March 2025 are scheduled to be the greater of either 3% DOE (ratio of annual dividends to initial and term-end average value of shareholders' equity) or a 50% payout ratio based on the Basic Policy for Enhancing Corporate Value announced in December 2022. Also, the Company has begun implementing interim dividends based on 1.5% DOE (ratio of annual dividends to shareholders' equity at the end of the previous fiscal year).

Accordingly, year-end dividends for the fiscal year ended March 2025 are scheduled to be 56 yen per share*, calculated based on the above policy by deducting the amount of interim dividends from the amount of annual dividends.

*For the fiscal year ended March 2025, since a 50% payout ratio for dividends (88 yen per share) is greater than 3% DOE (ratio of annual dividends to the initial and term-end average value of shareholders equity) (65 yen per share), annual dividends of 88 yen per share are scheduled to be implemented. As such, year-end dividends for the fiscal year ended March 2025 is scheduled to be 56 yen per share, wherein interim dividends (32 yen per share) are deducted from annual dividends.

(Regarding the amount of dividends for the fiscal year ended March 2026)

As for annual dividends for the next fiscal year onward, the above dividend policy has been reviewed, and the standard for assessing shareholders' equity used for DOE has been changed from "the initial and term-end average value" to "the value at the end of the previous period." The new policy is to pay out the greater of either 6% DOE (ratio of annual dividends to shareholders' equity at the end of the previous fiscal year) or a 50% payout ratio. Also, interim dividends will be based on 3% DOE (ratio of annual dividends to shareholders' equity at the end of the previous fiscal year). As this allows calculation of minimum dividends for the fiscal year ending March 2026, we have announced such in the above table

As it is difficult to make meaningful forecasts in earnings due to the nature of the Company's business, the Company does not disclose consolidated performance forecasts. As such, the payout ratio [consolidated] for the year ending March 31, 2026 is omitted.

3. Business Forecasts for the Year Ending March 31, 2026 (April 1, 2025 - March 31, 2026)

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

Changes in accounting estimates: None

④ Correction of prior period errors: None
Number of issued shares (common stock)
① Number of issued shares (including treasury shares)

As of March 31, 2025: 56,060,000

As of March 31, 2024: 56,060,000

JAFCO Group Co., Ltd.
② Number of treasury shares
As of March 31, 2025: 1,492,249	As of March 31, 2024: 1,576,350

③ Average number of shares
Year ended March 31, 2025:	54,538,046
Year ended March 31, 2024:	54,451,529

(Reference) Summary of Unconsolidated Performance

Unconsolidated Performance for the Year ended March 31, 2025 (April 1, 2024 - March 31, 2025)

								(Figures with % indicate the year-on-year rate of change)
(1)	Unconsolidated Operating Results

				Net sales			Operating income		Ordinary income		Profit attributable to
				[¥ million]	[%]		[¥ million]	[%]		[¥ million]	[%]		JAFCO Group Co.,
														Ltd. stockholders
														[¥ million]	[%]

		For the year ended March	28,192	21.8			12,066	58.5		13,151	39.3	9,632	16.4
		31, 2025

		For the year ended March	23,144	75.9			7,612	-		9,438	-	8,271	(80.5)
		31, 2024


				Net income per		Fully diluted net
				share [¥]			income per share [¥]

		For the year ended	176.61					-
		March 31, 2025

		For the year ended	151.91					-
		March 31, 2024


(2)	Unconsolidated Financial Position

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

		As of March 31, 2025		163,832			137,540			84.0		2,520.55


		As of March 31, 2024		158,210			133,518			84.4		2,450.62

	(Reference) Shareholders' equity		As of March 31,	2025:	¥137,540 million
				As of March 31, 2024:	¥133,518 million

*These financial results are not subject to audit procedures.

*Cautionary statements with respect to forward-looking statements and other notes (Access to the financial supplement materials)

The presentation materials for the year ended March 31, 2025 will be released on the Company's website on April 23, 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 year ended March 31, 2025, the Company and its consolidated subsidiaries (hereinafter collectively referred to as the "Company Group") posted net sales of ¥29,685 million, (up 21.4% year-on-year from ¥24,443 million), operating income of ¥12,520 million (up 53.1% year-on-year from ¥8,175 million), ordinary income of ¥13,205 million (up 49.7% year-on-year from ¥8,822 million), and profit attributable to JAFCO Group Co., Ltd. stockholders of ¥9,576 million (up 27.8% year-on-year from ¥7,494 million).

During the period under review, there were eight IPOs from the Company Group's portfolio (eight 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 in the SV4 Series and JAFCO Asia Technology Fund VI L.P.

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

(Outline of Capital Gains)

During the period under review, there were eight IPOs from the Company Group's portfolio (eight 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 year ended	Comparison
		March 31, 2024	March 31, 2025	(%)
		(A)	(B)	(B) / (A)
Revenues from operational	19,013	23,790	125.1
investment securities (1)

	Proceeds from sale of securities	18,890	23,444	124.1

	Dividend and interest income	123	345	280.8

Cost of operational investment securities	11,076	11,087	100.1
(2)

	Cost of securities sold	10,041	11,087	110.4

	Impairment	1,034	-	-


Capital gains (1) - (2)	7,937	12,703	160.0

Multiple (1) / (2)	1.72	2.15	-


Capital gains on listed shares	6,010	9,556	159.0

Capital gains on unlisted shares	1,927	3,146	163.2

	Gains on sale	5,063	4,595	90.8

	Losses on sale	3,136	1,448	46.2

JAFCO Group Co., Ltd.

(Outline of Investment Loss Reserves)

In the consolidated fiscal year ended March 31, 2025, the reversal of investment loss reserves exceeded the additions and the balance of investment loss reserves is decreasing. 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 year ended		Annualized
	March 31, 2024	March 31, 2025		comparison
	(A)	(B)		(B)/(A) (%)
Additions to investment loss	2,784		2,707		97.3
reserves (1)

Reversal of investment loss	3,560		2,991		84.0
reserves (2)
Net additions = (1) - (2)	(775)		(283)		-
(minus figures are reversals)
							(Millions of yen)


			As of March 31, 2024			As of March 31, 2025

Balance of investment loss reserves		13,754		13,468

Ratio to all unlisted operational investment		16.0%		16.0%
securities

(Outline of Balance of Operational Investment Securities)

In the consolidated fiscal year ended March 31, 2025, the balance of operational investment securities increased due to the impact of new IPOs of portfolio companies, etc.

			(Millions of yen)
		As of March 31, 2024	As of March 31, 2025

Difference between acquisition cost and market	15,698	16,835
value of listed operational investment securities
	Securities whose market value	15,871	17,004
	exceeds acquisition cost
	Securities whose market value	(172)	(169)
	falls below acquisition cost

			(Millions of yen)
		Year ended March 31, 2024	Year ended March 31, 2025

(Reversal of) Unrealized losses on operational	(13)	(2)
investment securities

JAFCO Group Co., Ltd.

Balance of Operational Investment Securities

				(Millions of yen)
	As of March 31, 2024	As of March 31, 2025

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


Listed	2,473	18,172	3,779	20,615

Unlisted	77,445	85,748	77,402	84,232

Total	79,919	103,921	81,181	104,847

(Outline of Fund Operations)

In the consolidated fiscal year ended March 31, 2025, success fees rose from the previous fiscal year due to progress made for the exits of SV4 Series and JAFCO Asia Technology Fund VI L.P.

				(Millions of yen)
		Year ended March 31, 2024	Year ended March 31, 2025	Comparison (%)
		(A)	(B)	(B) / (A)

Income from partnership	5,425	5,885	108.5
management

	Fund management	4,837	4,259	88.0
	fees

	Success fees	587	1,626	277.0

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

Outline of Financial Condition

Outline of assets, liabilities, and net assets

In the consolidated fiscal year ended March 31, 2025, 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 increased mainly due to an increase in income taxes payable.

			(Millions of yen)
		As of March 31, 2024	As of March 31, 2025

Total assets	165,540	169,970

	Current assets	160,489	165,355

	Non-current assets	5,051	4,615

Total liabilities	27,900	28,844

	Current liabilities	6,566	7,520

	Non-current liabilities	21,334	21,323

Net assets	137,639	141,126

JAFCO Group Co., Ltd.

(ii)Outline of cash flows

			(Millions of yen)
	For the year ended		For the year ended
	March 31, 2024		March 31, 2025
	Amount	Amount	Main factor

Cash flows from operating activities	(9,570)	10,442	Proceeds from sale of
operational investment securities

			Proceeds from share of profits
Cash flows from investing activities	(100)	134	on investments in other funds,
			etc.
Cash flows from financing activities	6,836	(5,447)	Dividends paid, etc.

Other	959	(249)	Exchange rate fluctuation

Term-end balance of cash and cash	67,606	72,486
equivalents
[8,241]	[6,160]
[Of which, interests in funds]

Note: The Company Group's uncalled commitments to funds managed by the Company Group as of March 31, 2025 were ¥21,038 million, compared with ¥34,298 million as of the end of previous fiscal year.

(Cash flow indices)

Fiscal year ended	March 2021	March 2022	March 2023	March 2024	March 2025

Equity ratio (%)	82.0	84.7	81.8	83.1	83.0

Market price-based equity ratio (%)	73.8	57.4	64.4	61.9	66.5

Cash flows/ Interest-bearing debt ratio (year)	14.3	-	-	-	0.0

Interest coverage ratio (times)	7.7	-	-	-	10,761.3

Equity ratio: Shareholders' equity / Total assets

Market price-based equity ratio: Market capitalization / Total assets

Cash flow / Interest-bearing debt ratio: Interest-bearing debt / Cash flows

Interest coverage ratio: Cash flows / Interest expense

Notes: 1. Market capitalization is based on the number of issued shares excluding treasury shares.

Operating cash flows are used as cash flows.
The interest-bearing debts include all liabilities on the balance sheets, whose interest is being paid.
Cash flows/ Interest-bearing debt ratio and interest coverage ratio for the fiscal years ended March 31, 2022, March 31, 2023, and March 31, 2024 are not shown because operating cash flows were negative.

JAFCO Group Co., Ltd.

Consolidated Financial Forecasts and Other Forward-Looking Statements
In the Basic Policy for Enhancing Corporate Value announced in December 2022, the Company clarified its basic policy on dividends and approach to necessary funds.
Based on the above policy, annual dividends for the fiscal year ended March 2025 shall be the greater of either 3% DOE (ratio of annual dividends to initial and term-end average value of shareholders' equity) or a 50% payout ratio. Also, the Company has begun implementing interim dividends based on 1.5% DOE (ratio of annual dividends to shareholders' equity at the end of the previous fiscal year). Accordingly, year-end dividends for the fiscal year ended March 2025 are scheduled to be 56 yen per share*, calculated based on the above policy by deducting the amount of interim dividends from the amount of annual dividends.
*For the fiscal year ended March 2025, since a 50% payout ratio for dividends (88 yen per share) is greater than 3% DOE (ratio of annual dividends to the initial and term-end average value of shareholders equity) (65 yen per share), annual dividends of 88 yen per share are scheduled to be implemented. As such, year-end dividends for the fiscal year ended March 2025 is scheduled to be 56 yen per share, wherein interim dividends (32 yen per share) are deducted from annual dividends.
As for annual dividends for the next fiscal year onward, the above dividend policy has been reviewed, and the standard for assessing shareholders' equity used for DOE has been changed from "the initial and term- end average value" to "the value at the end of the previous period." The new policy is to pay out the greater of either 6% DOE (ratio of annual dividends to shareholders' equity at the end of the previous fiscal year) or a 50% payout ratio. Also, interim dividends will be based on 3% DOE (ratio of annual dividends to shareholders' equity at the end of the previous fiscal year). For the dividend forecast (minimum amount) for the next fiscal year, see "2. Dividends" above in the summary of financial results.
Also, as laid out in the Basic Policy for Enhancing Corporate Value mentioned above, the policy is to consider share buybacks with regard to cash in excess of necessary funds. No change has been made to this policy. The Company has decided to implement a maximum of five billion yen of share buybacks from April 2025 due to steady progress in exits and increase in cash during the current fiscal year.
We will continue to our efforts to enhance corporate value by improving capital efficiency and promoting the growth strategy.

2. Basic Rationale for Selection of Accounting Standards

Valuation of unlisted shares and the scope of consolidation for funds, which are essential for the proper representation of the JAFCO Group's financial conditions and operating performance, differ between Japanese Accounting Standards and IFRS. At present, we consider Japanese Accounting Standards reasonable and have no immediate plans to convert to IFRS for the preparation of consolidated financial statements.

JAFCO Group Co., Ltd.

3. Consolidated Financial Statements

(1) Consolidated Balance Sheets

			(Millions of yen)
		As of March 31, 2024	As of March 31, 2025

Assets
Current assets
Cash and deposits	67,606	72,486
Operational investment securities	103,921	104,847
Investment loss reserves	(13,754)	(13,468)
Other	2,715	1,488
Total current assets		160,489	165,355
Non-current assets
Property, plant and equipment
Buildings, net	362	268
Furniture and fixture	56	50
Total property, plant and equipment		419	318
Intangible assets
Software	45	16
Total intangible assets		45	16
Investments and other assets
Investment securities	3,581	3,377
Long-term loans receivable	279	264
Deferred tax assets	349	267
Other	376	369
Total investments and other assets		4,586	4,279
Total non-current assets		5,051	4,615
Total assets		165,540	169,970