JAFCO : Earnings Presentation For the Year Ended March 31, 2024

FY March 2024

Contents

•	Key Message	3
•	Section 1	Financial Results	4 - 18
•	Section 2 Management Mindful of Capital Costs and the Stock Price	19 - 24
•	Section 3	Fund Management Status	25 - 30
•	Section 4	Initiatives for Enhancing Corporate Value	31 - 41
•	Appendix		42 - 56

The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued accuracy and reliability of the material. The contents may be changed without advance notification. Please note that even if this document contains forward-looking or forecast statements, such statements are not guarantees of future performance, and future performance may differ from actual results due to changes in the business environment and other factors. The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by the Company or in private equity funds. JAFCO Group holds all rights to this document with the exception of material taken from other sources, and no part of the document may be used or reproduced for any purpose whatsoever without prior permission.

(established Dec. 2022 and applied FY Mar. 2024)

Key Message

• Sales: ¥24.4 billion (YoY increase of 74%)

Financial results • Ordinary income: ¥8.8 billion

• Net income: ¥7.5 billion (YoY decrease of 82 %)

Shareholder returns

(dividends)

• Dividends of ¥69, representing 50% of net income, will be paid out as this is greater than ¥64 representing 3% of shareholders' equity (average for beginning and end of period)

The dividend policy is to pay out the greater of either 3% of shareholders' equity (average for beginning and end of period) or 50% of net income

Management mindful of capital costs and the stock price

• Aim for ROE of 15%-20%, exceeding the cost of shareholders' equity, in line with the Basic Policy for Enhancing Corporate Value announced in December 2022
• Work gradually to achieve KPIs aimed at increasing ROE, aligning with the approx. 3- year cycle of fund formation

Progress of Basic

Policy for Enhancing

Corporate Value

• ROE in the current fiscal year is 5.6%; We are making continued efforts for achieving our medium- to long-term target of 15%-20%
• Total capital commitments (AUM) for the new domestic fund closed this fiscal year (SV7 Series) was ¥97.8 billion with JAFCO's investment ratio at 22%, achieving our goal ahead of schedule

Section 1 Financial Results

4

Executive Summary for Fiscal Year Ended March 2024

Changes in business

environment and impact

on portfolio companies

• There were 99 IPOs this fiscal year, surpassing the number from last fiscal year

• Some IPOs attracted funds backed by the stock market rally since the beginning of 2024, but substantial capital

inflow into the growth market did not materialize

• Continue close monitoring of Japanese and international financial policies and Japanese startup-related policies
• Capital gains of ¥7.9 billion on sale of listed/unlisted shares (¥3.7 billion in the previous fiscal year)

Performance	•	6 IPOs in Japan (2 from buyout portfolio) and 1 overseas
	•	Recorded ¥2.8 billion of investment loss reserves (of which, ¥1.6 billion in 1Q, primarily related to US portfolio companies)

Investment

• ¥30.7 billion on a global basis (¥41.8 billion in the previous fiscal year)

• SV7 Series closed at ¥97.8 billion. External capital commitments were ¥75.8 billion and our own capital

Funds	commitment was ¥22.0 billion (22% of total commitments)

• Issued ¥15.0 billion of Zero Coupon Convertible Bonds in September 2023, securing funds to support our continuous

Financing

investment activities and ensure stable business operations (see to page 51)

• Established the Basic Policy on Sustainability in June 2023 and endorsed the recommendations of the Task Force

Sustainability

on Climate-related Financial Disclosures (TCFD)

Integrated Report

• Integrated Report 2023 was released at the end of October 2023

Financial Performance

Capital gains increased with IPO and M&A sales in buyout and venture investment (215% of the previous fiscal year).

Management fees increased due to new fundraising (143% of the previous fiscal year).

	Year ended	Year ended	Comparison
	March 31, 2023	March 31, 2024
	Total A	Total B	B/A
Total net sales	14.1	24.4	174%
Gross profit	6.7	12.2	181%
Capital gains	3.7	7.9	215%
Income from fund management	4.4	5.4	123%
Management fees	3.4	4.8	143%
Success fees	1.0	0.6	58%
Others *	(1.4)	(1.2)	-
Additions to investment loss reserves	5.5	(0.8)	-
(Reversal of) unrealized losses on operational investment securities	0.2	(0.0)	-
SG&A expenses	5.5	4.8	88%
(SG&A expenses exclueding buisiness tax)	4.3	4.4	103%
Operating income	(4.4)	8.2	-
Ordinary income	(3.0)	8.8	-
Profit attributable to JAFCO Group Co., Ltd. stockholders	40.6	7.5	18%
ROE	24.7%	5.6%	-

*Amount calculated by deducting "Other costs" from "Other sales"

[¥ billion]

6

Profit and SG&A Expenses

Management fees in FY March 2024 amounted to ¥4.8 billion*, an increase from ¥3.4 billion in the previous fiscal year, due to fundraising activities for the SV7 Series and Taiwan II Fund. This is a level roughly covering SG&A expenses (excl. business tax).

						*¥0.4 billion of this amount are fees applying to the previous fiscal year but claimed in FY March 2024.
				21.5		20.0
	18.5
[¥ billion]		16.6		16.6
									13.4
				15.4		12.6
Income sources (left bar)	13.6				11.3		8.1		Expenses (right bar)
						7.9
		14.0
Capital gains						Business tax
							5.5	4.8
Success fees	4.6		3.9	4.1	4.3	4.54.0	3.7	SG&A expenses
	1.2	0.6 0.4
	0.7		3.6 0.5			(excl. business tax)*1
Management fees		0.5	2.5 1.1	0.5	1.0
2.4
	3.9	0.8	3.4	2.6 3.6	2.9 3.2	2.9 3.5	3.4	4.3	4.8 4.4
	2.5	1.8
	18.03	19.03	20.03	21.03	22.03	23.03	24.03

No. of employees

(consolidated basis)

Admin. expense coverage*2

133

134

131

132

135

147

159

66% 52% 73% 88% 83% 79% 110%

*Note: 1. Business tax is classified separately from SG&A expenses due to large fluctuation in the amount resulting from gains on sales of shareholdings.

2. Admin. expense coverage＝Management fees/SG&A expenses excl. business tax

1. Figures are rounded to the nearest decimal place.
2. Income from fund management excludes management of JAFCO's interests in funds.
3. Accounting Standard for Revenue Recognition is applied to all periods. US subsidiary is not consolidated.

7

JAFCO's Primary Revenue Structure

Fees from investors' capital commitments for the operation of funds

Capital commitments from external

• Fundmanagement fees

	investors* × Approx. 2% per annum
② Success fees**	Fund management income × Rate of
external investors' interests × 20％

Returns generated from JAFCO's commitments to funds

Gain/loss on the sale of portfolio shares

③ Capital gains

corresponding to JAFCO's interests in funds

• • Success fees
• Fund management fees

External investors'

interests

③

Capital gains on JAFCO's interests

JAFCO's interests

• Funds entrusted for management by external investors; The amount subject to fund management fees excluding investments in ICON.
• Success fees are recorded once cumulative dividends exceed capital commitments.

Total capital commitments to funds

Profit Breakdown 1) Fund Management Fees

Stably record fund management fees through the operation of flagship funds (SV4、SV5、SV6、SV7).

Increase the fund size in line with market expansion, increase the external funding ratio, and accumulate fund

management fees.

8.4

6.2

[¥ billion]

SV6	SV7	5.2
established 4.8
established

3.4

2.9 2.9

2.5 2.6

1.8

18.03	19.03	20.03	21.03	22.03	23.03	24.03	…	Around	Around	Around
27.03	30.03	33.03

Total capital commitments	348.5	359.1	433.9	451.5	332.3	419.2	465.6	500.0	570.0	670.0
Of which, external capital	75.7	75.5	129.0	132.0	138.9	157.6	194.9	260.0	310.0	420.0
commitments*

Fund management fees

Capital commitments from external

investors × Approx. 2% per annum

Fund management fees stack up with fundraising

for new funds

The key driver is capital commitments from external investors.

**For 27.03 onward, image of medium- to long-term quantitative targets indicated in the Basic Policy for Enhancing Corporate Value announced in December 2022.

*Funds entrusted for management by external investors; The amount subject to fund management fees excluding investments in ICON.

Profit Breakdown 2) Success Fees

Success fees in FY March 2024 amounted to ¥0.6 billion and continue to be accrued.

Success fees are influenced by the exit environment; They are accrued from funds under operation whose distributions have exceeded capital commitments*1.

Amount of Success Fees

Image of Future Success Fees for the Current Balance of

Unlisted Holdings*2（simulated with an investment multiple of 2.5x)

[¥ billion]

4.5

3.6

2.4 2.5

[¥ billion]	About 350.0	About 220.0
Simulate with			Ratio of external
investment			commitments
multiple of 2.5x*3			(approx. 60%)
		About 30.0*4
		Potential
	capital gains	Ratio of
		(all funds)	JAFCO's
			commitment
234.3			(approx. 40%)

Success fees

Fund returns

（potential capital gains）

×

Ratio of external

commitments

×

20％

0.8

1.0

0.6

Balance of

unlisted holdings

(all funds)

*1 Success fees are recorded once the cumulative distributions exceed capital commitments. *2 Calculation of success fees for JAFCO's total balance of unlisted holdings as of the end of

March 2024 postulating an investment multiple of 2.5x.

*3 The average investment multiple over the past 10 years was 2.3x.

18.03 19.03 20.03 21.03 22.03 23.03 24.03

*4 Success fees from the balance of unlisted securities in the US are primarily allocated to the non-consolidated US subsidiary and therefore are excluded from the above calculations. Also, success fees distributed to partners and executives of JAFCO or of consolidated subsidiaries as well as fund management fees deducted from success fees have not been considered in the above calculations for the sake of simplicity.