JAFCO : Financial Results for the Six Months Ended September 30, 2021

JAFCO Group Co., Ltd.

The original disclosure in Japanese was released on October 22, 2021 at 12:00 (GMT+9).

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

JAFCO Group 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/
	October 22, 2021

Financial Results for the Six Months Ended September 30, 2021

[Japanese GAAP]

(Summary of Japanese announcement)

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

1. Consolidated Performance for the Six Months Ended September 30, 2021 (April 1, 2021 - September 30, 2021)

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 Group Co.,

Ltd. stockholders

[¥ million]

[%]

For the six months ended

18,439

93.1

13,312

345.2

14,103

198.1

10,797

306.0

September 30, 2021

For the six months ended

9,546

59.5

2,990

43.7

4,730

38.6

2,659

(12.7)

September 30, 2020

Note:

Comprehensive income

Six months ended September 30, 2021:

¥21,979 million [(14.8%)]

Six months ended September 30, 2020:

¥25,806 million [48.0%]

Fully diluted net

Profit per share [¥]

income per share

[¥]

For

the six months

ended September 30,

400.19

-

2021

For

the six months

ended September 30,

85.98

-

2020

(2) Consolidated Financial Position

		Total assets		Net assets		Equity ratio	Net assets
		[¥ million]		[¥ million]		[%]	per share [¥]
As of September 30, 2021		247,467			208,308		84.2	7,961.84
As of March 31, 2021		262,383			215,237		82.0	7,316.12
(Reference) Shareholders' equity	As of September 30, 2021:	¥208,308 million
		As of March 31, 2021:		¥215,237 million

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JAFCO Group Co., Ltd.

2. Dividends

		Dividend per share [¥]
(Record date)	End of 1Q	End of 2Q	End of 3Q	End of	Total
the year
For the year ended	-	-	-	138.00	138.00
March 31, 2021
For the year ending	-	-
March 31, 2022
For the year ending			-	-	-
March 31, 2022 (Forecast)

Notes: The forecast of dividend amount is unfixed.

3. Business Forecasts for the Year ending March 31, 2022 (April 1, 2021 - March 31, 2022)

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, the Company makes timely disclosure of quarterly financial results.

*Other Information

1. Changes in significant subsidiaries during this period: None
2. Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
3. Changes in accounting principles, accounting estimates and correction of prior period errors

• 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

Note: Please refer to (4) Notes for Consolidated Financial Statements under the section "2. Consolidated Financial Statements and Main Notes" on page 12.

(4) Number of issued shares (common stock)

• Number of issued shares (including treasury shares)

As of September 30, 2021: 26,970,000

As of March 31, 2021: 32,550,000

• Number of treasury shares

As of September 30, 2021: 806,613

As of March 31, 2021: 3,130,406

• Average number of shares

Six months ended September 30, 2021:	26,982,066
Six months ended September 30, 2020:	30,930,419

*Quarterly financial results are 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 six months ended September 30, 2021 will be released on the Company's website on October 22, 2021.

*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 Group Co., Ltd.

1. Outline of Operating Results

(1) Outline of Operating Results

In the consolidated fiscal six months ended September 30, 2021, the Company and its consolidated subsidiaries (collectively the "Company Group") posted net sales of ¥18,439 million, (up 93.1% year-on-year from ¥9,546 million), operating income of ¥13,312 million (up 345.2% year-on-year from ¥2,990 million), ordinary income of ¥14,103 million (up 198.1% year-on-year from ¥4,730 million), and profit attributable to JAFCO Group Co., Ltd. stockholders of ¥10,797 million (up 306.0% year-on-year from ¥2,659 million).

There were four IPOs by the Company Group's portfolio companies (two in Japan and two overseas) during the consolidated fiscal six months ended September 30 2021, and capital gains and success fees surged year-on-year as a result of the sale of shares in a major IPO.

Because the Company's earnings may fluctuate sharply for each three-month period due to the nature of its business, we provide annualized comparison as well as year-on-year comparison for the period under review.

(Outline of Capital Gains)

There were four IPOs by the Company Group's portfolio companies (two in Japan and two overseas) during the consolidated fiscal six months ended September 30, 2021. Capital gains surged year-on-year as a result of the sale of shares in a major IPO.

						(Millions of Yen)
			For the year ended	For the six months	For the six months	Annualized
			ended	comparison
			March 31, 2021	ended
			September 30, 2021	[(B)×2]/(A)
			(A)	September 30, 2020
					(B)	(%)
Revenues from operational	16,164	7,018	13,467	166.6
	investment securities (1)
	Proceeds from sale of securities	16,074	6,968	13,408	166.8
	Dividend and interest income	90	50	58	130.1
Cost of operational investment securities	4,903	2,155	2,746	112.0
(2)
	Cost of securities sold	4,903	2,155	2,746	112.0
	Impairment	-	-	-	-
Capital gains (1) - (2)	11,260	4,863	10,721	190.4
Multiple (1) / (2)	3.30	3.26	4.90	-
Capital gains on listed shares		7,567	4,597	10,482	277.0
Capital gains on unlisted shares		3,693	266	238	12.9
	Gains on sale		4,435	540	643	29.0
	Losses on sale		742	273	404	109.1

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JAFCO Group Co., Ltd.

(Outline of Investment Loss Reserves)

In the consolidated fiscal six months ended September 30, 2021, additions to investment loss reserves fell as the impact of COVID-19 was limited. The ratio of reserves to the balance of unlisted operational investment securities also decreased.

								(Millions of Yen)
		For the year ended	For the six months	For the six months	Annualized
		March 31, 2021	ended		ended September	comparison
		(A)	September 30, 2020		30, 2021 (B)	[(B)×2]/(A) (%)
Additions to investment loss	3,483		2,557		707	40.6
reserves (1)
	Company-by-company	3,541		2,598		719	40.6
	reserves
	(Reversal of general	(58)		(41)		(12)	-
	reserves)
Reversal of investment loss	803		164		787	195.8
reserves (2)
Net additions = (1)-(2)	2,679		2,392		(79)	-
(minus figures are reversals)
								(Millions of Yen)
				As of March 31, 2021		As of September 30, 2021
Balance of investment loss reserves		10,917			10,843
	Company-by-company reserves		10,772			10,710
	General reserves			145			133
Ratio to all unlisted operational investment		17.3%			15.3%
securities

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JAFCO Group Co., Ltd.

(Outline of Balance of Operational Investment Securities)

The balance of operational investment securities rose because of steady investment activity, mainly in startup companies.

								(Millions of Yen)
				As of March 31, 2021		As of September 30, 2021
Difference between acquisition cost and market value of		14,850			13,440
listed operational investment securities
	Securities whose market value			14,850			13,441
	exceeds acquisition cost
	Securities whose market value			-			(0)
	falls below acquisition cost
								(Millions of Yen)
			For the year	For the six months	For the six months
			ended	ended			ended
			March 31, 2021	September 30, 2020	September 30, 2021
(Reversal of) Unrealized losses on		(150)		(89)	0
operational investment securities

Balance of Operational Investment Securities

				(Millions of Yen)
	As of March 31, 2021	As of September 30, 2021
		Figures on the		Figures on the
	Acquisition cost	Acquisition cost	quarterly
	consolidated B/S
			consolidated B/S
Listed	1,594	16,444	1,580	15,021
Unlisted	62,511	63,102	69,458	70,669
Total	64,105	79,547	71,039	85,690

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