JAFCO : Financial Results for the Year Ended March 31, 2019（PDF：706KB）

JAFCO Co., Ltd.

The original disclosure in Japanese was released on April 24, 2019 at 12:00 (GMT+9).

This is a summary translation of a press release made in Japanese for convenience only.

JAFCO Co., Ltd. (Ticker: 8595)	Contact: Investor Relations
1-23-1 Toranomon, Minato-ku,	Tel: [phone]
Tokyo 105-6324 Japan	[e-mail]
http://www.jafco.co.jp/english/
	April 24, 2019

Financial Results for the Year Ended March 31, 2019

[Japanese GAAP]

(Summary of Japanese announcement)

(Japanese yen figures less than one million yen are rounded down)

1.Consolidated Performance for the Year Ended March 31, 2019 (April 1, 2018 - March 31, 2019)

(1)Consolidated Operating Results

(figures with % indicate the rate of change from the same period of the previous fiscal year)

		Net sales		Operating income		Ordinary income		Profit attributable to
		[¥ million]	[%]	[¥ million] [%]		[¥ million]	[%]	JAFCO Co., Ltd.
								stockholders
								[¥ million]	[%]
For the year ended		25,878	(12.2)	12,239	(14.1)	13,410	(13.8)	10,162	(58.1)
March 31, 2019
For the year ended		29,470	5.8	14,252	15.6	15,554	13.8	24,235	118.9
March 31, 2018
Note: 1. Comprehensive income		Year ended March 31, 2019:			¥7,186 million [(56.9 %)]
		Year ended March 31, 2018:			¥18,151 million [(20.4%)]

2.Figures for the year ended March 31, 2019 reflect the exclusion of the US subsidiary from the scope of consolidation based on the new revenue recognition standard.

		Fully diluted net	Return	Ordinary income/	Operating income/
	Profit per share [¥]	income per share	on equity	total assets	net sales
		[¥]	[%]	[%]	[%]
For the year ended	328.55	-	6.3	7.1	47.3
March 31, 2019
For the year ended	687.04	-	13.2	7.2	48.4
March 31, 2018

(2) Consolidated Financial Position

		Total assets		Net assets		Equity ratio	Net assets
		[¥ million]		[¥ million]		[%]	per share [¥]
As of March 31, 2019		184,213		163,215		88.6	5,276.80
As of March 31, 2018		191,550		160,299		83.7	5,182.49
(Reference) Shareholders' equity		As of March 31, 2019:		¥163,215 million
		As of March 31, 2018:		¥160,299 million

Note: Figures as of March 31, 2019 reflect the exclusion of the US subsidiary from the scope of consolidation based on the new revenue recognition standard.

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JAFCO Co., Ltd.

(3) Consolidated Cash Flows

	Net cash	Net cash	Net cash	Cash and cash
	provided by (used in)	provided by (used in)	provided by (used in)	equivalents as of
	operating activities	investing activities	financing activities	fiscal year end
	[¥ million]	[¥ million]	[¥ million]	[¥ million]
For the year ended	(1,350)	213	(3,923)	63,878
March 31, 2019
For the year ended	7,425	24,732	(69,046)	70,086
March 31, 2018

Note: Figures as of March 31, 2019 reflect the exclusion of the US subsidiary from the scope of consolidation based on the new revenue recognition standard.

2. Dividends

		Dividend per share [¥]				Total		Dividend/
						dividends	Payout ratio	shareholders'
				End of
(Record date)	End of 1Q	End of 2Q	End of 3Q		Total	paid	[consolidated]	equity
				the year		[¥ million]		[consolidated]
For the year ended	-	-	-	107.00	107.00	3,309	15.6%	3.0%
March 31, 2018
For the year ended	-	-	-	112.00	112.00	3,464	34.1%	3.0%
March 31, 2019
For the year ending	-	-	-	-	-		-
March 31, 2020 (Forecast)

Notes: The above dividend for the year ended March 31, 2019 is based on current plans. The forecast of dividend for the year ending March 31, 2020 is unfixed. We have set a policy to pay dividends of approximately 3% of shareholders' equity (initial and term-end average value) effective fiscal year ended March 31, 2017.

Dividend/ shareholders' equity: Dividend per share/ shareholders' equity per share (initial and term-end average value)

3. Business Forecasts for the Year ending March 31, 2020 (April 1, 2019 - March 31, 2020)

Volatility in stock markets and the IPO environment in Japan and overseas causes performance to fluctuate, as a result of which it is difficult to make meaningful forecasts in earnings. Therefore, instead of announcing projections, JAFCO makes timely disclosure of quarterly financial results.

*Other Information

(1)Changes in significant subsidiaries during this period: None

(2)Changes in accounting principles, accounting estimates and correction of prior period errors

① Changes in accounting principles due to revisions to accounting standards: None

② Changes in accounting principles other than ① : Yes

③Changes in accounting estimates: None

④ Correction of prior period errors: None

Note: For details, please refer to P.15, (5) Notes for Consolidated Financial Statements (Change in accounting principles) of 3. Consolidated Financial Statements.

(3) Number of issued shares (common stock)

① Number of issued shares (including treasury stock)

As of March 31, 2019:	32,550,000	As of March 31, 2018:	32,550,000
② Number of treasury stock
As of March 31, 2019:	1,619,264	As of March 31, 2018:	1,619,075

③ Average number of shares
Year ended March 31, 2019:	30,930,856
Year ended March 31, 2018:	35,274,901

*These financial results are not subject to audit procedures.

*Cautionary statements with respect to forward-looking statements and other notes

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JAFCO Co., Ltd.

(Access to the financial supplement materials)

The presentation material for the fiscal year ended March 31, 2019 will be released on JAFCO's website on April 24, 2019.

*Note to XBRL

Please note that the names of the English accounts contained in XBRL data, which are available

through EDINET and TDNet, may be different from those of the English accounts in our financial statements.

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JAFCO Co., Ltd.

1. Outline of Operating Results

(1) Outline of Operating Results

In the consolidated fiscal year ended March 31, 2019 (the "current fiscal year"), the JAFCO Group posted net sales of ¥25,878 million, ordinary income of ¥13,410 million, and profit attributable to JAFCO Co., Ltd. stockholders of ¥10,162 million. This compares with net sales of ¥29,470 million, ordinary income of ¥15,554 million, and profit attributable to JAFCO Co., Ltd. stockholders of ¥24,235 million for the previous full year ended March 31, 2018 (the "previous full year"). Net assets were ¥163,215 million, total assets were ¥184,213 million and the equity ratio was 88.6% as of the end of the current fiscal year, compared with ¥160,299 million, ¥191,550 million and 83.7% respectively at the end of the previous full year.

Net sales were 12.2% lower than the previous full year due to a decrease in income from partnership management, etc. Profit attributable to JAFCO Co., Ltd. stockholders was 58.1% lower due to a decrease in gain on sales of investment securities.

(Outline of Capital Gains)

Capital gains remained mostly unchanged from the previous full year. Despite slow IPOs, M&A of a buyout investee in Japan and trade sales of overseas unlisted portfolio companies generated sizable capital gains. Exits other than IPOs have diversified as a result of increases in shareholdings in portfolio companies.

			(Millions of Yen)
		For the year ended	For the year ended
		March 31, 2018	March 31, 2019
Revenues from operational		23,470	23,291
investment securities (1)
	Proceeds from sale of securities	23,322	23,177
	Dividend and interest income	147	113
Cost of operational investment securities (2)		9,848	9,274
	Cost of securities sold	9,848	9,274
	Impairment	-	-
Capital gains (1) - (2)		13,621	14,016
Multiple (1) / (2)		2.38	2.51
Capital gains on listed shares		11,281	5,264
Capital gains on unlisted shares		2,340	8,751
	Gains on sale	6,750	11,069
	Losses on sale	4,410	2,317

(Outline of Investment Loss Reserves)

The balance of investment loss reserves fell sharply as a result of improved portfolio quality and deeper management involvement under the highly selective, intensive investment policy. In the current fiscal year, the reserve ratio to unlisted operational investment securities was less than 20%.

			(Millions of Yen)
		For the year ended	For the year ended
		March 31, 2018	March 31, 2019
Additions to investment loss reserves (1)		2,283	1,687
	Company-by-company	3,817	2,541
	reserves
	(Reversal of) General reserves	(1,534)	(854)
Reversal of investment loss reserves (2)		3,148	2,399
Net additions = (1)-(2)		(865)	(712)
(minus figures are reversals)

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JAFCO Co., Ltd.

			(Millions of Yen)
		As of March 31, 2018	As of March 31, 2019
Balance of investment loss reserves		10,351	9,501
	Company-by-company reserves	8,644	8,651
	General reserves	1,707	850
Ratio to all unlisted operational investment securities		20.9%	18.4%

(Outline of Balance of Operational Investment Securities)

The balance of unlisted securities resulting from fund investment activity continued to trend upward over the previous year due to promotion of the highly selective, intensive investment strategy and portfolio reshuffle. The balance of listed securities in portfolio companies that made IPO fell due to sluggish IPOs in the current fiscal year.

											(Millions of Yen)
						As of March 31,2018			As of March 31, 2019
Difference between acquisition cost and market value of							9,633			6,153
listed operational investment securities
	Securities whose market value						9,850			6,394
	exceeds acquisition cost
	Securities whose market value						(216)			(240)
	falls below acquisition cost
											(Millions of Yen)
						For the year ended			For the year ended
						March 31, 2018				March 31, 2019
(Reversal of) Unrealized losses on operational						(105)				24
investment securities
Balance of Operational Investment Securities
											(Millions of Yen)
		As of March 31, 2018						As of March 31, 2019
		Acquisition cost			Figures on the		Acquisition cost				Figures on the
				consolidated B/S							consolidated B/S
Listed			2,035		11,669			1,590			7,744
Unlisted			46,528		47,743			49,067			49,803
Subtotal			48,564		59,412			50,657			57,547
Investments in			1,807		1,874			1,632			1,719
other funds
	Total		50,371		61,287			52,289			59,267
Note: 1. "Investments in other funds" is investment in funds managed by third parties.

2.The differences in "Acquisition cost" and "Figures on the consolidated balance sheets" for "Unlisted" securities and "Investments in other funds" only reflect foreign exchange translation difference.

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