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

Second Quarter

FY March 2024

•	Executive Summary	3
•	Section 1	Financial Results	4 - 17
•	Section 2 Fund Management Status	18 - 23
•	Section 3	2Q Achievements and Initiatives	24 - 26
•	Appendix		27 - 40

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.

2

Summary of 2Q FY March 2024

Changes in business

environment and

impact on portfolio

companies

• The number of IPOs exceeded the previous year but investors became more selective due to the reemergence of geopolitical and other risks

• Continue close monitoring of the impact of changes in financial environment and other factors on portfolio companies

• Capital gains of ¥2.5 billion on sale of listed/unlisted shares (¥1.2 billion the same period a year ago)
• 2 IPOs in Japan and 1 overseas

Performance

• Recorded ¥1.9 billion of investment loss reserves (of which, ¥1.6 billion in 1Q, primarily related to a U.S. portfolio company)

Investment

• ¥20.2 billion on a global basis (¥30.9 billion the same period a year ago)

Fundraising

• SV7 Series closed at ¥97.8 billion with external capital commitments of ¥71.3 billion and our own

capital commitments of ¥26.5 billion or 27% of total commitments

Financing

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

investment activities and ensure stable business operations (see to page 15)

Sustainability

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

on Climate-related Financial Disclosures (TCFD) in June

Integrated Report

• Integrated Report 2023 is scheduled to be released at the end of October 2023

3

Section 1 Financial Results

4

Financial Performance

Management fees increased due to fundraising activities for the SV7 Series and Taiwan II Fund

		Year ended		Year ending	Annualized
		March 2023		March 2024	comparison
	1H	2H	Total (A)	1H (B)	[(B)×2]/(A)
Total net sales	5.4	8.7	14.1	8.6	123%	[¥ Billion]
Gross profit	2.5	4.2	6.7	4.7	138%
Capital gains	1.2	2.5	3.7	2.5	136%
Income from fund management	2.1	2.3	4.4	2.7	121%
Management fees	1.6	1.8	3.4	2.5	148%
Success fees	0.6	0.4	1.0	0.2	31%
Other *1	(0.8)	(0.6)	(1.4)	(0.5)	-
Additions to investment loss reserves	1.0	4.5	5.5	0.4	16%
(Reversal of) unrealized losses on operational investment securities	0.0	0.2	0.2	(0.0)	-
SG&A expenses	2.2	3.3	5.5	2.3	84%
(SG&A expenses excluding business tax)	2.0	2.3	4.3	2.1	99%
Operating income	(0.7)	(3.7)	(4.4)	1.9	-
Ordinary income	0.4	(3.4)	(3.0)	2.4	-
Profit attributable to JAFCO Group Co., Ltd. stockholders	1.0	39.6	40.6	2.3	11%
ROE	-	-	24.7%	-	-

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

5

Profit and SG&A Expenses

Fund management fees increased from the same period last year (¥1.6 billion) due to fundraising activities for new funds

				21.5					6 mos
					20.0
	18.5
[¥ Billion]		16.6		16.6
				15.4		12.6
Income sources (Left bar)	13.6				11.3		8.1
Capital gains		14.0
							5.5
Success fees	4.6		3.9	4.1	4.3	4.54.0	3.7	5.2
	1.2	2.5 2.3
Management fees	0.7		3.6 0.5	2.5 1.1	1.0
2.4		0.5	0.5		0.2 0.2
	3.9	0.8	3.4	2.6 3.6	2.9 3.2	2.9 3.5	3.4	4.3
	2.5 2.1
	2.5	1.8
	18.03	19.03	20.03	21.03	22.03	23.03	23.09

No. of employees	134	131	132	135	147	159
133
(consolidated basis)
Admin. expense coverage*2 66%	52%	73%	88%	83%	79%	118%

Expenses (Right bar)

Business tax

SG&A expenses

(excl. business tax)*1

*Note: 1. Business tax is classified separately from SG&A expenses due to large	3.	Figures are rounded to the nearest decimal place.
fluctuation in the amount resulting from gains on sales of shareholdings.	4. Income from fund management excludes management of JAFCO's interests in funds.
2. Admin. expense coverage＝Management fees/SG&A expenses excl. business tax	5.	Accounting Standard for Revenue Recognition is applied to all periods.
		US subsidiary is not consolidated.

6

Profit Breakdown 1) Capital Gains and Investment Multiple

Total capital gains amounted to ¥2.5 billion and investment multiple was 1.7x

3 IPOs (CUORiPS, AVILEN and Roadzen)

		14.0	15.4				6 mos
	13.6
	2.6		12.6
				11.3
		5.3
[¥ Billion]			2.8	3.3	2.7
		2.5			2.5 (times)
	2.4				1.6	1.7
Gross ROI		7.6
						2.5
Gain (loss) on sale, net (Listed)	11.3					3.7
Gain (loss) on sale (Unlisted)	2.3	8.8	12.7	3.7	12.6	3.0	1.6
		0.7	0.9
	18.03	19.03	20.03	21.03	22.03	23.03	23.09
Gains	6.8	11.1	16.7	4.4	3.1	2.2	2.5	[¥ Billion]
Unlisted
Losses	(4.4)	(2.3)	(4.0)	(0.7)	(3.1)	(1.5)	(1.5)
# IPOs	8	2	4	6	6	5	3
Unrealized	9.9	6.4	7.1	14.9	12.5	11.0	13.6
Listed
gains

Note: 1. Gain (loss) on sale (Unlisted) includes other revenue related to portfolio companies.

1. Gain (loss) on sale, net (Listed) and Gain (loss) on sale (Unlisted) include impairment loss
2. Unrealized gains are valuation gains on listed operational investment securities.

4. Figures are rounded to the nearest decimal place.			7

Profit Breakdown 2) Capital Commitments to Funds and JAFCO's Fund Management Fees

Capital commitments to funds and the amount subject to management fees increased due to fundraising activities for new funds

		6 mos
	451.5	463.5
	433.9	419.2
[¥ Billion]	359.1
348.5	332.3
		3.4
	2.9	2.9
	2.5
2.5	2.6
Fund management fees		189.8
Capital commitments to funds	1.8	157.6

			129.0	132.0	138.9
Extended		75.5
Newly raised	75.7
Under management
	18.03	19.03	20.03	21.03	22.03	23.03	23.09

Note: 1. Figures are rounded to the nearest decimal place.

1. JAFCO's total share in funds under management: 40.9％ (22.03), 40.1% (23.03), 36.6% (23.09)
2. Exchange rates: Exchange rate at the end of each period is used for calculation. 23.09: US$1 = ¥149.58

Amount subject to management fees

(excluding JAFCO's interests,

non-consolidated US funds,

and funds under extension)

8

(Ref.) JAFCO's Profit Structure

Definition of profit items

① Capital gains：

② Success fees：

③ Fund management fees：

Gain/loss on the sale of portfolio shares corresponding to JAFCO's interests in funds

Amount of distributions made during the year from fund management income x the rate of external investor's interests x 20%

Funds entrusted to be managed by external investors (capital commitments from external investors) x approximately 2% per annum

①

Capital gains on

JAFCO's interests

• • Success fees
• Fund management fees

• We receive fees from external investors for managing their
  investments. (② Success fees＋③ Fund management fees)
• In addition, we also earn investment income by continuing to invest our equity capital in funds, which is our distinctive
  feature. (① Capital gains)

JAFCO's

interests

External investors'

interests

Capital commitments to funds

9

(Ref.) Operation Term of Flagship Funds and Timing of Capital Gain Recognition

By operating multiple flagship funds, we pursue continuous deal exits over the long term

Fund size	Balance of unlisted holdings
[JAFCO's interest]	[JAFCO's interest]
60.0	19.2
SV4	[9.5]
[29.7]
75.0	64.0
SV5	[27.7]
[32.4]
80.0	62.3
SV6	[22.7]
[29.1]
97.8	22.4
SV7	[6.1]
[26.5]

[¥ Billion]

12/03	17/03	22/03	24/03	27/03
▼	▼	▼	▼	▼

New investment

Exit

New investment

Exit

New investment

Exit

New investment

Exit

*as of September 30, 2023

*In addition, we have also invested in other overseas funds.

Total balance of unlisted holdings (JAFCO's interests)	SV4
	Other overseas funds 11.6%
broken down by flagship funds	23.6%
	SV7	¥89.4B SV5
	6.8%	32.6%

SV6

25.4%

(Ref.) Average exit multiple over the last 5 years

Acquisition cost basis	2.6x
Marked-down basis	3.8x

(As of September 30, 2023)

• Figures are rounded to the nearest decimal place
• SV4 and SV5 figures in the pie chart reflect parallel investments made by
  JAFCO

10