The original disclosure in Japanese was released on January 20, 2017 at 15:15 (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 1-5-1 Otemachi, Chiyoda-ku Tel: +81-3-5223-7073

Tokyo 100-0004 Japan ir@jafco.co.jp

http://www.jafco.co.jp

January 20, 2017

Financial Results for the Nine Months Ended December 31, 2016

[Japanese GAAP]

(Summary of Japanese announcement)

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

  1. Consolidated Performance for the Nine Months Ended December 31, 2016 (April 1, 2016 - December 31, 2016)
  2. Consolidated Operating Results

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

    Net sales [¥ million] [%]

    Operating income [¥ million] [%]

    Ordinary income [¥ million] [%]

    Profit attributable to JAFCO Co., Ltd.

    stockholders [¥ million] [%]

    For nine months ended December 31, 2016

    20,983

    (38.8)

    9,566

    (48.6)

    11,033

    (43.3)

    9,243

    (40.7)

    For nine months ended December 31, 2015

    34,304

    (25.0)

    18,613

    (39.6)

    19,446

    (40.0)

    15,581

    (36.6)

    Note: Comprehensive income Nine months ended December 31, 2016: ¥14,942 million (negative 10.2%)

    Nine months ended December 31, 2015: ¥16,646 million (negative 10.4%)

    Profit per share [¥]

    Fully diluted net income per share [¥]

    For nine months ended December 31, 2016

    For nine months ended December 31, 2015

    208.33

    351.19

    -

    -

  3. Consolidated Financial Position
  4. Total assets [¥ million]

    Net assets [¥ million]

    Equity ratio [%]

    Net assets per share [¥]

    As of December 31, 2016

    As of March 31, 2016

    226,488

    214,245

    200,005

    189,501

    88.3

    88.5

    4,507.94

    4,271.15

    (Reference) Shareholders' equity As of December 31, 2016: ¥200,005 million

    As of March 31, 2016: ¥189,501 million

  5. Dividends

    Dividend per share [¥]

    (Record date)

    End of 1Q

    End of 2Q

    End of 3Q

    End of the year

    Total

    For the year ended March 31, 2016

    -

    -

    -

    100.00

    100.00

    For the year ending March 31, 2017

    -

    -

    -

    For the year ending March 31, 2017 (Forecast)

    -

    -

    Notes: The forecast of dividend amount is unfixed.

  6. Business Forecasts (April 1, 2016 - March 31, 2017)

    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
  7. Changes in significant subsidiaries during this period: None

  8. Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None

  9. Changes in accounting principles, accounting estimates and correction of prior period errors

    Changes in accounting principles due to revisions to accounting standards: Yes

    Changes in accounting principles other than: None

    Changes in accounting estimates: None

    Correction of prior period errors: None

    Notes: For details, please refer to P7, (3) Changes in accounting principles, accounting estimates and correction of prior period errors (Changes in accounting principle).

  10. Number of issued shares (common stock)

  11. Number of issued shares (including treasury stock)

    As of December 31, 2016: 48,294,336 As of March 31, 2016: 48,294,336

    Number of treasury stock

    As of December 31, 2016: 3,926,884 As of March 31, 2016: 3,926,600

    Average number of shares

    For nine months ended December 31, 2016: 44,367,602

    For nine months ended December 31, 2015: 44,367,922

    *Disclosure regarding the implementation of audit procedures

    This financial summary is not subject to the audit procedures required under the Financial Instruments and Exchange Act. At the time of the disclosure of this report, the audit of consolidated financial statements pursuant to the Act had not been completed.

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

    (Access to the financial supplement materials)

    The presentation material for the nine months ended December 31, 2016 was released on JAFCO's website on January 20, 2017.

    *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.

    1. Qualitative Analysis and Financial Statements (1) Qualitative Analysis of Consolidated Operating Results

    JAFCO posted net sales of ¥20,983 million, ordinary income of ¥11,033 million, and profit attributable to JAFCO Co., Ltd. stockholders of ¥9,243 million in the consolidated fiscal nine months ended December 31, 2016. This compares with net sales of ¥41,155 million, ordinary income of ¥19,808 million, and profit attributable to JAFCO Co., Ltd. stockholders of ¥17,018 million for the previous full year ended March 31, 2016 (the "previous full year").

    (Outline of Investments)

    The JAFCO Group and its funds made investments totaling ¥15,320 million (40 companies) in the nine months ended December 31, 2016, compared with ¥21,441 million (62 companies) in the previous full year. The details are shown on page 16.

    (Outline of Capital Gains and IPOs)

    JAFCO posted ¥15,891 million in revenues from operational investment securities (previous full year:

    ¥32,376 million). Capital gains came to ¥6,919 million (previous full year: ¥15,689 million), out of which capital gains on listed shares were ¥4,800 million (previous full year: ¥9,989 million) and capital gains on unlisted shares were ¥2,118 million (previous full year: ¥5,699 million). This ¥2,118 million consisted of ¥4,987 million (previous full year: ¥10,586 million) in gains on sale and ¥2,869 million (previous full year: ¥4,887 million) in losses on sale. Capital gains include dividends and interest income and are net of impairment.

    There were three IPOs in Japan and three overseas by portfolio companies of the JAFCO Group and its funds (previous full year: eight IPOs in Japan and six overseas). The details are shown on page 17-19.

    (Millions of Yen)

    For the year ended March 31,

    2016 (A)

    For nine months ended December 31,

    2015

    For nine months ended December 31,

    2016 (B)

    Annualized comparison [(B)/3×4]/(A) (%)

    Revenues from operational investment securities (1)

    32,376

    26,668

    15,891

    65.4

    Proceeds from sale of securities

    30,824

    25,427

    15,740

    68.1

    Dividend and interest income

    1,551

    1,241

    150

    12.9

    Cost of operational investment securities (2)

    16,687

    12,185

    8,971

    71.7

    Cost of securities sold

    16,687

    12,185

    8,971

    71.7

    Impairment

    -

    -

    -

    -

    Capital gains (1) - (2)

    15,689

    14,483

    6,919

    58.8

    Multiple (1) / (2)

    1.94

    2.19

    1.77

    -

    Capital gains on listed shares

    9,989

    9,416

    4,800

    64.1

    Capital gains on unlisted shares

    5,699

    5,066

    2,118

    49.6

    Gains on sale

    10,586

    8,275

    4,987

    62.8

    Losses on sale

    4,887

    3,208

    2,869

    78.3

    (Outline of Investment Loss Reserves)

    JAFCO makes investment loss reserves for operational investment securities after taking investees' business performance into consideration. Company-by-company reserves are made if the estimated recovery amount falls below 70% of acquisition cost. General reserves are made to cover all other unlisted portfolio companies based on our accumulated expertise in private equity.

    Additions to investment loss reserves for the nine months ended December 31, 2016 totaled ¥1,632 million, consisting of ¥1,465 million in company-by-company reserves and of ¥167 million in general reserves, compared with ¥3,098 million, ¥3,370 million and a reversal of ¥272 million respectively in the previous full year.

    Company-by-company reserves were reversed by ¥3,920 million following the sale and impairment of securities in the nine months ended December 31, 2016, compared with ¥3,673 million reversed in the previous full year. As a result, net additions to investment loss reserves were negative ¥2,287 million, compared with negative ¥574 million in the previous full year.

    Balance of investment loss reserves came to ¥12,891 million (26.6% of the balance of unlisted operational investment securities) as of December 31, 2016, compared with ¥15,176 million (29.8% of the balance of unlisted operational investment securities) at the end of the previous full year.

    (Millions of Yen)

    For the year ended March 31,

    2016 (A)

    For nine months ended December 31,

    2015

    For nine months ended December 31,

    2016 (B)

    Annualized comparison [(B)/3×4]/(A) (%)

    Additions to investment loss reserves (1)

    3,098

    2,207

    1,632

    70.3

    Company-by-company reserves

    3,370

    2,286

    1,465

    58.0

    (Reversal of) General reserves

    (272)

    (79)

    167

    -

    Reversal of investment loss reserves (2)

    3,673

    2,735

    3,920

    142.3

    Net additions = (1)-(2) (minus figures are reversals)

    (574)

    (528)

    (2,287)

    -

    (Millions of Yen)

    As of March 31, 2016

    As of December 31, 2016

    Balance of investment loss reserves

    15,176

    12,891

    Company-by-company reserves

    11,834

    9,382

    General reserves

    3,342

    3,509

    Ratio for all unlisted operational investment securities

    29.8%

    26.6%

JAFCO Co. Ltd. published this content on 20 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 January 2017 06:23:01 UTC.

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