JAFCO Group Co., Ltd.

The original disclosure in Japanese was released on January 25, 2023 at 15:00 (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

ir@jafco.co.jp

http://www.jafco.co.jp/english/

January 25, 2023

Financial Results for the Nine Months Ended December 31, 2022

[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, 2022 (April 1, 2022 - December 31, 2022)

  1. 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

9,728

(58.9)

(437)

－

814

(95.1)

44,641

230.9

December 31, 2022

For the nine months ended

23,682

103.0

15,265

348.9

16,564

176.5

13,491

252.3

December 31, 2021

Note:

Comprehensive income

Nine months ended December 31, 2022:

(¥19,262 million) [-%]

Nine months ended December 31, 2021:

¥38,800 million [(10.5%)]

Profit per share

Fully diluted net

income per share

[¥]

[¥]

For

the

nine

months

627.51

-

ended December 31, 2022

For

the

nine

months

168.96

-

ended December 31, 2021

(Note) The Company conducted a 3-for-1 stock split as of February 1, 2022. "Profit per share" was calculated assuming that the stock split took place at the beginning of the previous fiscal year.

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

[¥ million]

[¥ million]

[%]

As of December 31, 2022

201,895

174,278

86.3

As of March 31, 2022

233,024

197,390

84.7

(Reference) Shareholders' equity

As of December 31, 2022:

¥174,278 million

As of March 31, 2022:

¥197,390 million

Net assets

per share [¥]

2,448.29

2,769.16

(Note) The Company conducted a 3-for-1 stock split as of February 1, 2022. "Net assets per share" was calculated assuming that the stock split took place at the beginning of the previous fiscal year.

1

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

-

-

-

51.00

51.00

March 31, 2022

For the year ending

-

-

-

March 31, 2023

For the year ending

150.00

150.00

March 31, 2023 (Forecast) *

Note: Revision to the most recent dividend forecast: None

*However, subject to successful completion of the issuer tender offer currently underway (the "Tender Offer"), the dividend shall be the amount calculated by deducting the amount of share buyback based on the Tender Offer from profit attributable to JAFCO Group Co., Ltd. stockholders for the fiscal year ending March 31, 2023, divided by the number of issued shares as of the dividend record date (excluding the number of treasury shared held by the Company as of the same date), under the condition that this amount exceeds ¥150.

3. Business Forecasts for the Year ending March 31, 2023 (April 1, 2022 - March 31, 2023)

Volatility in stock markets and the IPO environment in Japan and overseas causes performance to fluctuate, as a result of which it is difficult to make meaningful forecasts in earnings. Therefore, instead of announcing projections, the Company makes timely disclosure of quarterly financial results.

*Other Information

  1. Changes in significant subsidiaries during this period: None
  2. Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
  3. 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
  2. Number of issued shares (common stock)
    • Number of issued shares (including treasury shares)

As of December 31, 2022: 73,280,000

As of March 31, 2022: 80,910,000

  • Number of treasury shares

As of December 31, 2022: 2,095,979

As of March 31, 2022: 9,628,015

  • Average number of shares

Nine months ended December 31, 2022:

71,141,190

Nine months ended December 31, 2021:

79,850,999

Note: The Company conducted a 3-for-1 stock split as of February 1, 2022. "Number of issued shares," "Number of treasury shares," and "Average number of shares" were calculated assuming that the stock split took place at the beginning of the previous fiscal year.

*Quarterly 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 material for the nine months ended December 31, 2022 will be released on the Company's website on January 25, 2023.

*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.

2

JAFCO Group Co., Ltd.

1. Outline of Operating Results

(1) Outline of Operating Results

In the consolidated fiscal nine months ended December 31, 2022, the Company and its consolidated subsidiaries (collectively the "Company Group") posted net sales of ¥9,728 million, (down 58.9% year-on-year from ¥23,682 million), operating loss of ¥437 million (against operating income of ¥15,265 million for the nine months ended December 31, 2021), ordinary income of ¥814 million (down 95.1% year-on-year from ¥16,564 million), and profit attributable to JAFCO Group Co., Ltd. stockholders of ¥44,641million (up 230.9% year-on-year from ¥13,491 million).

There were four IPOs by the Company Group's portfolio companies (four in Japan and none overseas) during the consolidated fiscal nine months ended December 31, 2022. Capital gains remained at a low level due to a harsh market environment.

In the consolidated fiscal nine months ended December 31, 2022, the Company sold its entire shareholdings in Nomura Research Institute, Inc. (23,968,100 common shares, excluding shares less than one unit). As a result, capital gains of ¥63,796 million (of which ¥62,783 million was recorded as extraordinary income) were recorded.

Because the Company's earnings may fluctuate sharply for each three-month period due to the nature of its business, we provide annualized comparison as well as year-on-year comparison for the period under review.

(Outline of Capital Gains)

There were four IPOs by the Company Group's portfolio companies (four in Japan and none overseas) during the consolidated fiscal nine months ended December 31, 2022. Capital gains remained at a low level due to a harsh market environment. Compared to the consolidated fiscal nine months ended December 31, 2021, when there was a major IPO by a portfolio company, capital gains plunged year-on year.

(Millions of Yen)

For the year ended

For the nine

months ended

March 31, 2022

December 31,

(A)

2021

Revenues from operational

20,257

17,505

investment securities (1)

Proceeds from sale of securities

20,147

17,411

Dividend and interest income

109

93

Cost of operational investment securities

7,619

5,550

(2)

Cost of securities sold

6,848

5,123

Impairment

770

427

For the nine

months ended December 31, 2022

(B)

6,365

6,257

107

3,793

3,793

-

Annualized comparison [(B)/3x4]/(A) (%)

41.9

41.4

130.8

66.4

73.9

-

Capital gains (1) - (2)

12,638

11,955

Multiple (1) / (2)

2.66

3.15

Capital gains on listed shares

12,596

12,344

Capital gains on unlisted shares

41

(389)

Gains on sale

3,142

1,362

Losses on sale

3,100

1,751

2,571

1.68

2,711

(139)

804

944

27.1

-

28.7

-

34.2

40.6

3

JAFCO Group Co., Ltd.

(Outline of Investment Loss Reserves)

In the consolidated fiscal nine months ended December 31, 2022, additions to investment loss reserves were higher than reversals, as a result of which the balance of investment loss reserves increased. The ratio of reserves to the balance of unlisted operational investment securities declined.

(Millions of Yen)

For the year ended

For the nine months

March 31, 2022

ended

(A)

December 31, 2021

Additions to investment loss

1,108

1,572

reserves (1)

Company-by-company

1,137

1,598

reserves

(Reversal of general

(29)

(26)

reserves)

Reversal of investment loss

3,094

2,372

reserves (2)

Net additions = (1)-(2)

(1,985)

(800)

(minus figures are reversals)

For the nine months

ended

December 31, 2022

(B)

2,461

2,467

(6)

1,616

845

Annualized comparison [(B)/3x4]/(A) (%)

296.1

289.2

-

69.6

-

(Millions of Yen)

As of March 31, 2022

As of December 31, 2022

Balance of investment loss reserves

8,969

9,850

Company-by-company reserves

8,853

9,740

General reserves

116

110

Ratio to all unlisted operational investment

12.1%

11.4%

securities

4

JAFCO Group Co., Ltd.

(Outline of Balance of Operational Investment Securities)

The balance of operational investment securities rose due to steady investment activity, mainly in startup companies.

(Millions of Yen)

As of March 31, 2022

As of December 31, 2022

Difference between acquisition cost and market value of

12,510

7,667

listed operational investment securities

Securities whose market value

12,510

7,818

exceeds acquisition cost

Securities whose market value

-

(151)

falls below acquisition cost

(Millions of Yen)

For the year

For the nine months

For the nine months

ended

ended

ended

March 31, 2022

December 31, 2021

December 31, 2022

(Reversal of) Unrealized losses on

-

-

151

operational investment securities

Balance of Operational Investment Securities

(Millions of Yen)

As of March 31, 2022

As of December 31, 2022

Figures on the

Figures on the

Acquisition cost

Acquisition cost

quarterly

consolidated B/S

consolidated B/S

Listed

1,755

14,266

1,682

9,350

Unlisted

70,515

73,914

81,864

86,406

Total

72,271

88,180

83,547

95,756

5

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JAFCO Co. Ltd. published this content on 25 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2023 06:06:01 UTC.