JAFCO (8595) investor relations material

Executive summary

• H1 FY2027 net income was ¥1,488m; domestic capital gains were ¥1,463m, below the prior-year period, as investment activity slowed.

• SV8 commitments reached ¥68.8bn by September 30 against a ¥100bn target; investment commencements contributed to management fees.

• Two venture portfolio IPOs and one major buyout M&A exit took place in H1; domestic startup funding and succession-related M&A showed momentum.

Financial highlights

• H1 net sales were ¥5,968m, gross profit ¥3,360m, operating profit ¥1,570m, ordinary profit ¥1,498m and net income ¥1,488m; EPS was ¥28.27.

• Net sales comprised ¥4,006m from operational investment securities and ¥1,961m from investment partnership management.

• Partnership management income was ¥1,961m, including ¥1,859m in management fees and ¥101m in success fees; capital gains were ¥1,463m.

• Investments totaled ¥5,943m across 18 companies: ¥5,748m in 17 venture companies and ¥195m in one buyout company.

• Operating cash flow was ¥5,670m; investing and financing cash outflows were ¥3,204m and ¥3,526m, respectively, and H1-end cash was ¥60,122m.

Outlook and guidance

• FY2027 dividend forecast is at least ¥133/share, including an interim dividend of ¥66.50; policy is the greater of 6% DOE or a 50% payout ratio.

• SV8 fundraising target is ¥100bn, with commitments of ¥68.8bn at Q2-end; the stated goal is to exceed the prior SV7 Series total of ¥97.8bn.

• Meaningful earnings forecasts are difficult due to stock and IPO market fluctuations; quarterly results will be disclosed instead.

• Medium- to long-term targets include 3.0x MOIC for domestic funds and ROE of 15–20%, with strategy focused on domestic fund growth and external commitments.