JAFCO Group Co., Ltd.

The original disclosure in Japanese was released on July 26, 2023 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

ir@jafco.co.jp

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

July 26, 2023

Financial Results for the Three Months Ended June 30, 2023

[Japanese GAAP]

(Summary of Japanese Announcement)

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

1. Consolidated Performance for the Three Months Ended June 30, 2023 (April 1, 2023 - June 30, 2023)

  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

three

months

4,735

72.6

601

75.0

850

(26.7)

857

(3.3)

ended June 30, 2023

For

the

three

months

2,743

(81.5)

343

(97.2)

1,160

(91.1)

886

(91.2)

ended June 30, 2022

Note:

Comprehensive income

Three months ended June 30, 2023:

¥4,891 million [-%]

Three months ended June 30, 2022:

(¥4,243 million) [-%]

Profit per share

Fully diluted net

income per share

[¥]

[¥]

For

the

three

months

15.76

-

ended June 30, 2023

For

the

three

months

12.47

-

ended June 30, 2022

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets

[¥ million]

[¥ million]

[%]

per share [¥]

As of June 30, 2023

136,585

127,479

93.3

2,344.06

As of March 31, 2023

159,847

130,745

81.8

2,404.11

(Reference) Shareholders' equity

As of June 30, 2023:

¥127,479 million

As of March 31, 2023:

¥130,745 million

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

-

-

-

150.00

150.00

March 31, 2023

For the year ending

-

March 31, 2024

For the year ending

-

-

-

-

March 31, 2024 (Forecast) *

Note:

The forecast of dividend for the year ending March 31, 2024 is unfixed.

The Company set a policy to pay dividends of approximately 3% of shareholders' equity (initial and term-end average value) effective fiscal year ended March 31, 2017, but the policy has been changed to pay the greater of 3% of shareholders' equity (initial and term-end average value) or 50% of net income from the fiscal year ending March 31, 2024 onwards.

3. Business Forecasts for the Year ending March 31, 2024 (April 1, 2023 - March 31, 2024)

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

  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 June 30, 2023: 56,060,000

As of March 31, 2023: 56,060,000

  • Number of treasury shares

As of June 30, 2023: 1,675,979

As of March 31, 2023: 1,675,979

  • Average number of shares

Three months ended June 30, 2023:

54,384,021

Three months ended June 30, 2022:

71,083,095

*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 three months ended June 30, 2023 will be released on the Company's website on July 26, 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 three months ended June 30, 2023, the Company and its consolidated subsidiaries (hereinafter collectively referred to as the "Company Group") posted net sales of ¥4,735 million, (up 72.6% year- on-year from ¥2,743 million), operating income of ¥601 million (up 75.0% year-on-year from ¥343 million), ordinary income of ¥850 million (down 26.7% year-on-year from ¥1,160 million), and profit attributable to JAFCO Group Co., Ltd. stockholders of ¥857 million (down 3.3% year-on-year from ¥886 million).

During the period under review, there was one IPO from the Company Group's portfolio (one in Japan and none overseas), resulting in an year-on-year increase in capital gains. Income from fund management fees also rose due to an increase in capital commitments for the SV7 Series from external investors

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 first-quarter results and the previous full-year results.

(Outline of Capital Gains)

There was one IPO from the Company Group's portfolio (one in Japan and none overseas) in the consolidated fiscal three months ended June 30, 2023. Capital gains increased as a result of the sale of listed and unlisted shares.

(Millions of Yen)

For the year ended

For the three

For the three

Annualized

March 31, 2023

months ended

months ended

comparison

(A)

June 30, 2022

June 30, 2023

[(B)x4]/(A) (%)

(B)

Revenues from operational

9,665

1,733

3,572

147.8

investment securities (1)

Proceeds from sale of securities

9,523

1,686

3,523

148.0

Dividend and interest income

142

47

48

137.2

Cost of operational investment securities

5,981

1,044

1,727

115.5

(2)

Cost of securities sold

5,508

1,044

1,727

125.5

Impairment

473

-

-

-

Capital gains (1) - (2)

3,684

689

1,844

200.2

Multiple (1) / (2)

1.62

1.66

2.07

-

Capital gains on listed shares

3,026

123

728

96.2

Capital gains on unlisted shares

658

565

1,116

678.3

Gains on sale

2,153

575

1,525

283.2

Losses on sale

1,495

10

408

109.4

3

JAFCO Group Co., Ltd.

(Outline of Investment Loss Reserves)

In the consolidated fiscal three months ended June 30, 2023, additions to investment loss reserves and the balance of investment loss reserves increased year on year mainly due to a mark-down on a U.S. portfolio company. The ratio of reserves to the balance of unlisted operational investment securities also rose.

(Millions of Yen)

For the year ended

For the three

For the three

Annualized

March 31, 2023

months ended

months ended

comparison

(A)

June 30, 2022

June 30, 2023

(B)

[(B)x4]/(A) (%)

Additions to investment loss

7,853

814

1,635

83.3

reserves (1)

Company-by-company

7,969

809

1,635

82.1

reserves

(Reversal of general

(116)

5

-

-

reserves)

Reversal of investment loss

2,369

784

580

98.0

reserves (2)

Net additions = (1)-(2)

5,484

30

1,055

77.0

(minus figures are reversals)

(Millions of Yen)

As of March 31, 2023

As of June 30, 2023

Balance of investment loss reserves

14,490

15,572

Company-by-company reserves

14,490

15,572

General reserves

-

-

Ratio to all unlisted operational investment

17.0%

17.6%

securities

4

JAFCO Group Co., Ltd.

(Outline of Balance of Operational Investment Securities)

In the consolidated fiscal three months ended June 30, 2023, the balance of operational investment securities rose due to the impact of market value fluctuations of listed operational investment securities and foreign exchange rates.

(Millions of Yen)

As of March 31, 2023

As of June 30, 2023

Difference between acquisition cost and market value of

10,809

13,551

listed operational investment securities

Securities whose market value

10,990

13,726

exceeds acquisition cost

Securities whose market value

(181)

(175)

falls below acquisition cost

(Millions of Yen)

For the year

For the three months

For the three months

ended

ended

ended

March 31, 2023

June 30, 2022

June 30, 2023

(Reversal of) Unrealized losses on

181

65

(8)

operational investment securities

Balance of Operational Investment Securities

(Millions of Yen)

As of March 31, 2023

As of June 30, 2023

Acquisition cost

Figures on the

Figures on the

Acquisition cost

quarterly

consolidated B/S

consolidated B/S

Listed

2,462

13,271

2,403

15,955

Unlisted

80,507

85,258

81,596

88,482

Total

82,970

98,530

84,000

104,437

5

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JAFCO Co. Ltd. published this content on 26 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2023 03:07:09 UTC.