SUMMARY OF FINANCIAL RESULTS

INDEX

  1. Financial Performance ・・・・・・・・・・ ・ ・ ・ 03 - 13
  2. Investment Activity ・・・・・・・・・・・・・・・・ 14 - 20
  3. Assets under Management ・・・・・・・・・・・・ 21 - 25
  4. Our Mission and Approach ・・・・・・・・・・・・ 26 - 29
  5. Appendix ・・・・・・・・・・ ・ ・・・・・・・・・ 30 - 38
  6. Disclaimer ・・・・・・・・・ ・ ・・・・・・・・・ 39

Consolidated financial information reflects only JAFCO's interests.

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. Risks and uncertainties including changes to economic circumstances may cause results and projections to differ materially from those presented in the document. The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAFCO Group or JAFCO-operated funds. JAFCO Group holds all rights to this document. With the exception of material taken from other sources, no part of the document may be used or reproduced for any purpose whatsoever without prior permission.

SUMMARY OF FINANCIAL RESULTS

2

Summary of the Nine Months Ended December 31, 2022

Changes in Operating Environment and Impact on Portfolio Companies

  • Funds raised through IPOs plunged compared to 2021
  • Stock markets are moving sensitively to inflationary trends, wariness about domestic monetary policy revisions, etc.
  • Continue close monitoring of impact on portfolio companies' performance and fundraising

Performance

Capital gains totaling ¥2.6 billion on sale of listed/ unlisted shares (¥12.0 billion a year ago) 4 IPOs in Japan

Performance was sluggish mainly due to a harsh exit environment

Sold entire stockholdings in Nomura Research Institute, Inc. (NRI) and recorded capital gains of ¥63.8 billion

Investment

¥37.2 billion on a global basis (¥32.4 billion a year ago)

New Domestic Fund Series

SV7 Series, consisting of a VC investment fund, a buyout investment fund, and funds investing in both of aforementioned funds, was established

Total commitments to date: ¥56.8 billion; continue focusing on fundraising

Stock Compensation

  • The Annual General Meeting of Shareholders held in June 2022 resolved to introduce the restricted stock compensation plan; restricted stock granted in July

Measures to Enhance Corpora Value

  • Announced an issuer tender offer to purchase 16.8 million treasury shares for a total of ¥42 billion
  • Announced "Basic Policy for Enhancing Corporate Value" for the next 10 years

Emergency Takeover Defense Measures

  • To be abolished upon completion of tendering from tender offer agreement parties and the expiry of the period of the issuer tender offer

Integrated Report

Scheduled to be published in February 2023

3

SUMMARY OF FINANCIAL RESULTS

Overview of Basic Policy for Enhancing Corporate Value

Basic policy for enhancing corporate value based on promotion of growth strategies

and improvement of capital efficiency.

Short-term measures

Improve capital efficiency by reducing net assets

Dividend policy

Sell all NRI

Reduce

Buy back ¥42 billion

necessary funds

in treasury shares

shareholdings

¥120 billion

using the after-tax

¥60 billion*(1)

sales proceeds of

NRI shares

3% of shareholders' equity (average of

beginning and end of period)

Greater of 3% of shareholders' equity (average of beginning and end of period) or 50% of net income*(2)

*1 Necessary funds for immediate needs after deducting interest-

*2 For the fiscal year ending March 31, 2023 only, the dividends will be the greater of the following: a. ¥150; or b. The amount

bearing debts, accrued taxes and expenses, and expected dividend

calculated by dividing the Company's net income for the fiscal year ending March 31, 2023, including the gain on the sale of NRI

payments at the end of March of each fiscal year

shares and after deducting the total acquisition price of shares bought back in the issuer tender offer, by the number of Company

Medium- to long-term goals

shares outstanding on the record date of the dividend (excluding treasury shares then held by the Company).

Funds under management

Investment ratio in

ROE

Total return ratio

(AUM)

new funds

(Present)

(10 yrs. from now)

Target level

¥380 billion

¥670 billion

(Present)

(10 yrs. from now)

(Present) (10 yrs. from now)

60～over 100％

40％

20％

6％ 15~20％

While further improving investment performance,

Gradually reduce necessary

we plan to increase fund size in line with target

funds and consider returning

market expansion

any excess amount to

shareholders

SUMMARY OF FINANCIAL RESULTS

4

Financial Results (JAFCO's interests)

Total net sales

Capital gains

Income from fund management

Management fees

Success fees

Additions to investment loss reserves Reversal of investment loss reserves

SG&A expenses

[SG&A expenses excluding business tax*]

Operating income

Ordinary income

Profit attributable to

JAFCO Group Co., Ltd. stockholders

Year ended

Nine months ended

March 31, 2022

Dec. 31, 2021

Total A

1Q - 3Q

27,677

23,682

12,638

11,955

7,410

6,169

2,949

2,256

4,461

3,912

1,108

1,572

3,094

2,372

4,033

2,833

3,538

2,438

16,876

15,265

18,360

16,564

15,080

13,491

Nine months ended Dec. 31, 2022 1Q - 3Q B

9,728

2,571

3,360

2,522

838

2,461

1,616

4,276

3,176

(437)

814

44,641

(¥ Million)

Annualized comparison [B/3×4]/A

47%

27%

60%

114%

25%

296%

70%

141%

120%

ー

6%

395%

*SG&A expenses excluding business tax is stated because the amount of business tax changes significantly in line with gains on the sale of securities holdings

SUMMARY OF FINANCIAL RESULTS

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 06:06:02 UTC.