JAFCO Group (8595) Q2 2025 earnings summary

Executive summary

• Stock market recovery and robust IPO activity led to significant capital gains, with three IPOs in Japan, including two with market caps over ¥100 billion and a market value at IPO of ¥18,023 million, contributing to increased profits.

• Achieved capital gains of ¥7.4 billion on share sales, up from ¥2.5 billion year-over-year, and global investments reached ¥24.5 billion, up from ¥20.2 billion.

• Interim dividends of ¥32 per share scheduled, with a flexible policy linking dividends to shareholders' equity or net income.

• Success fees increased due to exits in the SV4 Series and JAFCO Asia Technology Fund VI L.P.

• Transfer of interests in SV6 and SV7 to Japan's first public investment trust with unlisted securities for ¥3.6 billion.

Financial highlights

• Total net sales for 1H FY25: ¥15,997 million, up 85.3% year-over-year; operating income: ¥6,421 million, up 231.6%; ordinary income: ¥6,824 million, up 187.8%.

• Profit attributable to stockholders: ¥4,693 million, up 102.9% year-over-year.

• Capital gains: ¥7.4 billion, investment multiple of 2.4x; 3 IPOs completed.

• Management fees: ¥2.1 billion; success fees: ¥1.1 billion, up 372.6% year-over-year.

• Net cash provided by operating activities was ¥5,102 million, reversing a negative ¥20,449 million in the prior year.

Outlook and guidance

• Ongoing monitoring of political and financial trends in Japan and globally; no specific forecasts due to earnings volatility tied to market and IPO conditions.

• Additional shareholder returns to be considered based on exit progress and fundraising environment.

• Medium- to long-term targets include increasing fund size and external capital commitments.