JAFCO Group (8595) investor relations material

Executive summary

• Shifted to domestic investment focus and transitioned to non-consolidated reporting after completing the transfer of all Asian and US subsidiaries; now only domestic operations are consolidated.

• For the nine months ended December 31, 2025, reported net sales of ¥17,706 million, operating profit of ¥3,912 million, ordinary profit of ¥6,035 million, and net profit of ¥5,610 million.

• IPO and M&A exit activity slowed, with only 2 IPOs and capital gains of ¥5.1B, down from ¥10.8B year-over-year.

• Raised ¥50B for new flagship SV8 Fund Series, targeting over ¥97.8B–¥100B total.

• Shareholder returns emphasized: ¥5B share buybacks, interim dividend of ¥66.5, and annual dividend guidance unchanged at ¥133; adopted new dividend policy: higher of 6% DOE or 50% payout ratio.

Financial highlights

• Net sales: ¥17,706 million; operating profit: ¥3,912 million; ordinary profit: ¥6,035 million; net profit: ¥5,610 million for the nine months ended December 31, 2025.

• Capital gains: ¥6.5B with MOIC of 2.3x; 2 IPOs completed.

• Management fees: ¥2,467 million; success fees: ¥391 million.

• SG&A expenses (excluding business tax): ¥2.6B (98% of prior year annualized).

• Basic earnings per share: ¥105.12.

Outlook and guidance

• Targeting ROE of 15–20% by focusing on domestic investment and increasing external capital commitments.

• MOIC target for domestic funds set at 2.5x–3.0x; overseas funds expected to maintain 1.6x.

• Annual management fees projected to rise with new fund launches and higher external commitments.

• No quantitative financial forecasts provided due to earnings volatility tied to stock and IPO markets.

• Minimum annual dividend forecast for FY ending March 31, 2026 is ¥133 per share, based on 6% DOE or 50% payout ratio.