JAFCO Group (8595) Q1 2027 earnings summary

Executive summary

• Capital gains for the quarter were ¥1.2 billion, down from ¥3.3 billion year-over-year, with one IPO (SQUEEZE Inc.) and one major M&A exit (GCU Co., Ltd.).

• Investments executed totaled ¥3.7 billion, a decrease from ¥5.8 billion in the same period last year; new investments were made in four Japanese startups.

• The SV8 Fund Series was established, raising approximately ¥65 billion in capital commitments, aiming for ¥100 billion.

• Dividend policy maintains a projected minimum dividend of ¥133 per share, consistent with the previous year and based on a minimum 6% DOE or 50% payout ratio.

• Transition to non-consolidated financial statements completed after divestitures of overseas subsidiaries, focusing resources on domestic investments.

Financial highlights

• Net sales for Q1 FY2026 were ¥3,073 million; operating profit was ¥627 million; ordinary profit was ¥786 million; net profit was ¥564 million.

• Gross profit was ¥2,132 million; SG&A expenses were ¥1,600 million.

• Net income per share was ¥10.74 for the quarter.

• Net assets per share stood at ¥2,544 at quarter-end.

• ROE for the quarter was 4.8%.

Outlook and guidance

• The company aims to increase the size of new domestic funds and external capital commitments, targeting a 3.0x MOIC and ROE of 15-20% in the medium to long term.

• No quantitative earnings forecast provided due to high volatility from market and IPO conditions; company will continue timely quarterly disclosures.

• Projected minimum dividend for FY March 2027 is ¥133 per share, maintaining continuity in shareholder returns.