JAFCO : Financial Results for the Year Ended March 31, 2017（PDF：186KB）

The original disclosure in Japanese was released on April 21, 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: [phone]

Tokyo 100-0004 Japan [e-mail]

http://www.jafco.co.jp

April 21, 2017

Financial Results for the Year Ended March 31, 2017

[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, 2017 (April 1, 2016 - March 31, 2017)
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 the year ended March 31, 2017	27,857	(32.3)	12,324	(35.9)	13,666	(31.0)	11,073	(34.9)
   For the year ended March 31, 2016	41,155	(33.6)	19,226	(50.0)	19,808	(50.6)	17,018	(38.6)

   Note: Comprehensive income Year ended March 31, 2017: ¥22,791 million (292.0%)

   Year ended March 31, 2016: ¥5,814 million ( negative 80.5%)

   Profit per share [¥]	Fully diluted net income per share [¥]	Return on equity [%]	Ordinary income/ total assets [%]	Operating income/net sales [%]
   For the year ended March 31, 2017	249.59	-	5.6	6.0	44.2
   For the year ended March 31, 2016	383.57	-	9.0	8.7	46.7

3. Consolidated Financial Position

   Total assets [¥ million]	Net assets [¥ million]	Equity ratio [%]	Net assets per share [¥]
   As of March 31, 2017 As of March 31, 2016	237,902 214,245	207,855 189,501	87.4 88.5	4,684.87 4,271.15

   (Reference) Shareholders' equity As of March 31, 2017: ¥207,855 million

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

4. Consolidated Cash Flows

5. Net cash provided by (used in) operating activities [¥ million]	Net cash provided by (used in) investing activities [¥ million]	Net cash provided by (used in) financing activities [¥ million]	Cash and cash equivalents as of fiscal year end [¥ million]
   For the year ended March 31, 2017 For the year ended March 31, 2016	15,117 12,788	(1,580) 11,768	(5,817) (14,092)	107,179 99,302

6. Dividends

7. 	Dividend per share [¥]					Cash dividends paid [¥ million]	Consolidated payout ratio [%]	Dividend/ shareholders' equity [%]
   (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	4,436	26.1	3.1
   For the year ended March 31, 2017	-	-	-	100.00	100.00	4,436	40.1	2.9
   For the year ending March 31, 2018 (Forecast)	-	-	-	-	-	-

   Notes: 1. The amount of dividend for the year ended March 31, 2017 is tentative. The forecast of dividend amount for the year ending March 31, 2018 is unfixed.

   2. 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.
8. Business Forecasts (April 1, 2017 - March 31, 2018)

   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

9. Changes in significant subsidiaries during this period: None

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

    ① Changes in accounting principles due to revisions to accounting standards: Yes

    ② Changes in accounting principles other than ①: None

    ③ Changes in accounting estimates: None

    ④ Correction of prior period errors: None

    Notes: For details, please refer to page 17, (5) Notes for Consolidated Financial Statements (Changes in accounting principles).

11. Number of issued shares (common stock)

12. ① Number of issued shares (including treasury stock)

    As of March 31, 2017: 48,294,336 As of March 31, 2016: 48,294,336

    ② Number of treasury stock

    As of March 31, 2017: 3,926,884 As of March 31, 2016: 3,926,600

    ③ Average number of shares

    For the year ended March 31, 2017: 44,367,565

    For the year ended March 31, 2016: 44,367,885

    *This report is not subject to audit procedures.

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

    (Access to the financial supplement materials)

    The presentation material for the year ended March 31, 2017 was released on JAFCO's website on April 21, 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 ¥27,857 million, ordinary income of ¥13,666 million, and profit attributable to JAFCO Co., Ltd. stockholders of ¥11,073 million in the consolidated fiscal year ended March 31, 2017. 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"). Net assets were ¥207,855 million, total assets were ¥237,902 million and the equity ratio was 87.4% as of the end of the year, compared with ¥189,501 million, ¥214,245 million and 88.5% respectively at the end of the previous full year.

    (Outline of Investments)

    The JAFCO Group and its funds made investments totaling ¥20,904 million (55 companies) in the year ended March 31, 2017, compared with ¥21,441 million (62 companies) in the previous full year. In Japan, we focused further on highly selective investment in promising companies. In the US, we made initial investments in three IT service providers totaling $25 million. In Asia, we made initial investments totaling $13 million in six companies in Taiwan and China.

    (Outline of Capital Gains and IPOs)

    Of ¥20,774 million in revenues from operational investment securities (previous full year: ¥32,376 million). Capital gains came to ¥8,800 million (previous full year: ¥15,689 million), out of which capital gains on listed shares were ¥6,499 million (previous full year: ¥9,989 million) and capital gains on unlisted shares were ¥2,301 million (previous full year: ¥5,699 million). This ¥2,301 million consisted of

    ¥5,893 million (previous full year: ¥10,586 million) in gains on sale and ¥3,592 million (previous full year: ¥4,887 million) in losses on sale.

    There were six IPOs in Japan and three overseas by investees of the JAFCO Group and its funds (previous full year: eight IPOs in Japan and six overseas).

    (Millions of Yen)

    For the year ended March 31, 2016	For the year ended March 31, 2017
    Revenues from operational investment securities (1)		32,376	20,774
    Proceeds from sale of securities	30,824	20,533
    Dividend and interest income	1,551	240
    Cost of operational investment securities (2)		16,687	11,973
    Cost of securities sold	16,687	11,973
    Impairment	-	-

    Capital gains (1) - (2)	15,689	8,800
    Multiple (1) / (2)	1.94	1.74

    Capital gains on listed shares		9,989	6,499
    Capital gains on unlisted shares		5,699	2,301
    Gains on sale	10,586	5,893
    Losses on sale	4,887	3,592