JAFCO Group (8595) Q3 2025 earnings summary

Executive summary

• Achieved capital gains of ¥10.9 billion on share sales, up from ¥4.9 billion year-over-year, driven by seven domestic IPOs and increased global investments.

• Completed 7 IPOs in Japan, including 4 in 3Q; notable large IPOs included Astroscale Holdings and Timee, each exceeding ¥100 billion in market cap.

• Invested ¥30.6 billion globally, up from ¥26.2 billion year-over-year.

• Implemented interim dividends of ¥32 per share, with a new policy based on 1.5% of prior year-end shareholders' equity.

• Transferred interests in SV6 and SV7 to Japan's first public investment trust with unlisted securities, developed with Nomura Asset Management.

Financial highlights

• Total net sales for 1Q-3Q were ¥25.4 billion, up 138% year-over-year; net sales for the nine months ended December 31, 2024, rose 73.9% year-over-year to ¥25,355 million.

• Gross profit reached ¥14.7 billion, up 160% year-over-year.

• Operating income was ¥11.2 billion, up 182% year-over-year.

• Profit attributable to stockholders was ¥8.7 billion, up 155% year-over-year.

• Ordinary income for the period was ¥12.2 billion, up 148.7% year-over-year.

Outlook and guidance

• Additional shareholder returns will be considered based on exit progress and fundraising for the next flagship fund.

• Aims to increase fund size and external capital commitments in line with market expansion.

• No specific financial forecasts provided due to earnings volatility tied to stock and IPO markets; quarterly disclosures will continue.

• Dividend policy: year-end dividends will be the greater of 3% of shareholders' equity or 50% of net income, minus interim dividends.