JAFCO : Financial Results for the Year Ended March 31, 2021

JAFCO Group Co., Ltd.

The original disclosure in Japanese was released on April 21, 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]
https://www.jafco.co.jp/english/
	April 21, 2021

Financial Results for the Year Ended March 31, 2021

[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, 2021 (April 1, 2020 - March 31, 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 year ended March		21,512	(27.9)	8,964		(40.1)		11,707	(31.3)	38,504	225.2
	31, 2021
	For the year ended March		29,855	15.4	14,970		22.3		17,045	27.1	11,839	16.5
	31, 2020
	Note:	Comprehensive income	Year ended March 31, 2021:	¥40,675 million [42.1%]
					Year ended March 31, 2020:	¥28,616 million [266.1%]
							Fully diluted net		Return	Ordinary income/	Operating income/
			Profit per share [¥]	income per share	on equity	total assets		net sales
								[¥]		[%]			[%]		[%]
	For the year ended		1,249.43			-		19.1			4.8		41.7
	March 31, 2021
	For the year ended		382.76			-		6.7			8.4		50.1
	March 31, 2020

(2) Consolidated Financial Position

		Total assets		Net assets		Equity ratio	Net assets
		[¥ million]		[¥ million]		[%]	per share [¥]
As of March 31, 2021		262,383		215,237		82.0	7,316.12
As of March 31, 2020		222,059		188,366		84.8	6,089.99
(Reference) Shareholders' equity	As of March 31, 2021:	¥215, 237 million
		As of March 31, 2020:	¥188,366 million

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JAFCO Group Co., Ltd.

(3) Consolidated cash flows

		Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financial activities	at end of period
		[¥ million]	[¥ million]	[¥ million]	[¥ million]
	For the year ended	8	49,154	(13,944)	107,517
	March 31, 2021
	For the year ended	12,177	(277)	(3,581)	72,040
	March 31, 2020
2. Dividends

		Dividend per share [¥]		Total		Dividend/
				End of		dividends	Payout ratio	shareholders'
(Record date)	End of 1Q End of 2Q End of 3Q	Total	paid	[consolidated]	equity
the year	[¥ million]		[consolidated]
For the year ended	-	-	-	118.00	118.00	3,649	30.8%	3.0%
March 31, 2020
For the year ended	-	-	-	138.00	138.00	4,059	11.0%	3.0%
March 31, 2021
For the year ending	-	-	-	-	-		-
March 31, 2022 (Forecast)

Notes: The above dividend for the year ended March 31, 2021 is based on current plans. The forecast of dividend for the year ending March 31, 2022 is unfixed. The Company has 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, 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. 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 : None
     ③ Changes in accounting estimates: None
     ④ Correction of prior period errors: None
2. Number of issued shares (common stock)
3. • Number of issued shares (including treasury shares)

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

As of March 31, 2020: 32,550,000

• Number of treasury shares

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

As of March 31, 2020: 1,619,534

• Average number of shares

Year ended March 31, 2021:	30,817,354
Year ended March 31, 2020:	30,930,598

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JAFCO Group Co., Ltd.

(Reference) Summary of Unconsolidated Performance

Unconsolidated Performance for the Year ended March 31, 2021 (April 1, 2020 - March 31, 2021)

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

(1) Unconsolidated Operating Results

					Net sales	Operating income		Ordinary income		Profit attributable to
					[¥ million]	[%]		[¥ million] [%]		[¥ million]	[%]		JAFCO Group Co.,
														Ltd. stockholders
														[¥ million]	[%]
		For the year ended March		20,407	(16.8)		8,317	(20.6)	10,896	(33.5)	37,757	223.7
	31, 2021
		For the year ended March		24,534	(0.5)		10,470	(6.5)	16,377	32.9	11,663	28.7
	31, 2020
					Profit per share [¥]		Fully diluted net
						income per share [¥]
		For the year ended		1,225.20				-
		March 31, 2021
		For the year ended		377.08				-
		March 31, 2020
(2) Unconsolidated Financial Position
					Total assets	Net assets		Equity ratio		Net assets
					[¥ million]	[¥ million]		[%]			per share [¥]
		As of March 31, 2021		256,461		211,143			82.3		7,176.97
		As of March 31, 2020		216,305		185,216			85.6		5,988.17
		(Reference) Shareholders' equity	As of March 31, 2021:	¥211,143 million
					As of March 31, 2020:	¥185,216 million

*These 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 year ended March 31, 2021 will be released on the Company's website on April 21, 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 year ended March 31, 2021, the Company and its consolidated subsidiaries (collectively the "Company Group") posted net sales of ¥21,512 million, (down 27.9% from ¥29,855 million for the previous fiscal year), operating income of ¥8,964 million (down 40.1% from ¥14,970 million), ordinary income of ¥11,707 million (down 31.3% from ¥17,045 million), and profit attributable to JAFCO Group Co., Ltd. stockholders was ¥38,504 million (up 225.2% from ¥11,839 million).

During the current fiscal year, there were six portfolio IPOs (five in Japan and one overseas), and capital gains decreased year-on-year as a result. Meanwhile, additions to investment loss reserves rose due mainly to the impact of the new coronavirus pandemic.

With regard to the impact of the new coronavirus and the Company's response, please refer to the presentation material which will be released on the Company's website.

In the current consolidated fiscal year, the Company sold 15,500,000 common shares in Nomura Research Institute, Inc. (hereinafter "NRI") (39.3% of the Company's total shareholdings in NRI of 39,468,150 shares), which had been held purely for the purpose of investment, based on a resolution made by the board of directors. As a result, ¥44,764 million in gain on sale of investment securities was recorded as an extraordinary gain.

(Outline of Capital Gains)

Although capital gains on the sale of listed shares increased from the previous year due to six portfolio IPOs (five in Japan and one overseas), overall capital gains including those on the sale of other shares decreased in the current fiscal year.

				(Millions of Yen)
		Year ended	Year ended	Comparison (%)
		March 31, 2020	March 31, 2021
		(B) / (A)
		(A)	(B)
Revenues from operational	23,697	16,164	68.2
investment securities (1)
	Proceeds from sale of securities	23,540	16,074	68.3
	Dividend and interest income	156	90	57.8
Cost of operational investment	8,337	4,903	58.8
securities (2)
	Cost of securities sold	8,116	4,903	60.4
	Impairment	221	-	-
Capital gains (1) - (2)	15,359	11,260	73.3
Multiple (1) / (2)	2.84	3.30	-
Capital gains on listed shares	2,627	7,567	288.0
Capital gains on unlisted shares	12,732	3,693	29.0
	Gain on sale	16,726	4,435	26.5
	Loss on sale	3,994	742	18.6

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JAFCO Group Co., Ltd.

(Outline of Investment Loss Reserves)

In the consolidated fiscal year ended March 31, 2021, additions to investment loss reserves rose due to the impact of the new coronavirus pandemic. The ratio of reserves to the balance of unlisted operational investment securities also increased.

							(Millions of Yen)
		Year ended			Year ended	Comparison (%)
		March 31, 2020		March 31, 2021
			(B) / (A)
		(A)				(B)
Additions to investment loss reserves (1)	3,084			3,483	112.9
	Company-by-company	3,731			3,541	94.9
	reserves
	(Reversal of) General reserves	(647)			(58)	-
Reversal of investment loss reserves (2)	3,599			803	22.3
Net additions = (1)-(2)	(514)			2,679	-
(minus figures are reversals)
							(Millions of Yen)
		As of March 31, 2020		As of March 31, 2021
Balance of investment loss reserves	8,229				10,917
	Company-by-company reserves	8,026				10,772
	General reserves	203				145
Ratio to all unlisted operational investment securities	14.9％				17.3％

(Outline of Balance of Operational Investment Securities)

The balance of operational investment securities rose in the consolidated year ended March 31, 2021 because of IPOs of portfolio companies, etc.

			(Millions of Yen)
		As of March 31, 2020	As of March 31, 2021
Difference between acquisition cost and market	6,975	14,850
value of listed operational investment securities
	Securities whose market value	7,126	14,850
	exceeds acquisition cost
	Securities whose market value	(151)	-
	falls below acquisition cost
			(Millions of Yen)
		Year ended March 31, 2020	Year ended March 31, 2021
(Reversal of) Unrealized losses on operational	(88)	(150)
investment securities

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JAFCO Group Co., Ltd.

Balance of Operational Investment Securities

				(Millions of Yen)
	As of March 31, 2020	As of March 31, 2021
	Acquisition cost	Figures on the	Acquisition cost	Figures on the
	consolidated B/S	consolidated B/S
Listed	1,494	8,470	1,594	16,444
Unlisted	54,696	55,061	62,511	63,102
Total	56,191	63,532	64,105	79,547

Note: 1. Investments in other funds (investment in funds managed by third parties) have been included in investment securities holdings since the end of the previous fiscal year.

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

(Outline of Fund Operations)

Management fees from JAFCO SV6 Fund Series (SV6) and JAFCO Taiwan I Venture Capital Limited Partnership, both established in the previous fiscal year, increased.

				(Millions of Yen)
		Year ended March 31, 2020	Year ended March 31, 2021	Comparison (%)
		(A)	(B)	(B) / (A)
Income from partnership	6,155	5,340	86.8
management
	Fund management	2,586	2,871	111.0
	fees
	Success fees	3,569	2,469	69.2
Note:	Fund management fees and success fees are based on commitment amount excluding the Company Group's commitment.

1. Outline of Financial Condition

1. Outline of assets, liabilities, and net assets

Assets and liabilities increased mainly due to changes in the market value of investment securities holdings.

In the current consolidated fiscal year, the Company sold 39.3% of its shareholdings in NRI and passed a resolution to implement a share buyback up to ¥35,000 million, which is equivalent to after-tax sales proceeds of NRI shares. As a result, shares totaling ¥10,154 million had been bought back as of the end of the current consolidated fiscal year.

			(Millions of Yen)
		As of March 31, 2020	As of March 31, 2021
Total assets	222,059	262,383
	Current assets	128,421	177,455
	Non-current assets	93,637	84,928
Total liabilities	33,693	47,145
	Current liabilities	7,582	20,351
	Non-current liabilities	26,110	26,794
Net assets	188,366	215,237

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JAFCO Group Co., Ltd.

(ii) Outline of cash flows

				(Millions of Yen)
	For the year ended		For the year ended
	March 31, 2020			March 31, 2021
	Amount	Amount		Main factor
Cash flows from operating activities	12,177	8		Revenue from the sale of
	operational investment
				securities, etc.
	(277)			Revenue from the sale of
Cash flows from investing activities	49,154		investment securities (NRI
				shares)
Cash flows from financing activities	(3,581)	(13,944)		Expenditure related to share
	Buyback, etc.
Other	(156)	258		Exchange rate fluctuation
Term-end balance of cash and cash	72,040	107,517
equivalents
[5,776]	[7,843]
[Of which, interests in funds]

Note: JAFCO Group's uncalled commitments to JAFCO-managed funds as of March 31, 2021 were ¥31,624 million, compared with ¥31,939 million at the end of previous full year.

(Cash flow indices)

Fiscal year ended	March 2017	March 2018	March 2019	March 2020	March 2021
Equity ratio (%)	87.4	83.7	88.6	84.8	82.0
Market price-based equity ratio (%)	69.7	81.4	66.6	39.2	73.8
Cash flows/ Interest-bearing debt ratio (year)	0.3	0.1	-	0.0	14.3
Interest coverage ratio (times)	300.5	202.8	-	7,727.8	7.7

Equity ratio: Shareholders' equity / total assets

Market price-based equity ratio: Market capitalization/ total assets

Cash flow/ interest-bearing debt ratio: Interest-bearing debt/ cash flows

Interest coverage ratio: Cash flows/ interest expense

Notes: 1. Market capitalization is based on the number of issued shares excluding treasury shares.

1. 1. Operating cash flows are used as cash flows.
   2. The interest-bearing debts include all the liabilities on the balance sheets, whose interest is being paid.
   3. Cash flows/ interest-bearing debt ratio and interest coverage ratio for the fiscal year ended March 31, 2019 are not shown because operating cash flows were negative.
2. Policy on Distribution of Profits and Dividends for the Current Fiscal Year/ Next Fiscal Year

In February 2021, JAFCO Group passed a resolution to implement a share buyback up to the total acquisition costs of ¥35 billion and not exceeding 7 million shares (acquisition period: until February 11, 2022). Concurrently, it announced the policy on future shareholder returns, which stipulates that if the sum of cash and equivalents and mark-to-market valuation (after tax) of NRI shares exceeds the amount of funds necessary for future investments (currently about ¥120 billion) by a certain amount, the Company will consider a share buyback.

In the current consolidated fiscal year, shares totaling ¥10,154 million were bought back based on the above resolution.

Regarding the dividend, the Company has set a policy to pay dividends of approximately 3% of shareholders' equity (initial and term-end average value). For the current fiscal year, it plans to pay ¥138 per share (previous full year: ¥118 per share) based on the above indicator.

The Company remains committed to secure necessary funds required to continue investment under any circumstances, while maintaining a good balance between proactive investment based on our investment policy and continuous shareholder returns.

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JAFCO Group Co., Ltd.

2. Basic Rationale for Selection of Accounting Standards

Valuation of unlisted securities and the scope of consolidation for funds, which are essential for the proper representation of the JAFCO Group's financial conditions and operating performance, differ between Japanese Accounting Standards and IFRS. At present, we consider Japanese Accounting Standards reasonable and have no immediate plans to convert to IFRS for the preparation of consolidated financial statement.

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JAFCO Group Co., Ltd.

3. Consolidated Financial Statements

(1) Consolidated Balance Sheets

							(Millions of yen)
					As of March 31, 2020		As of March 31, 2021
	Assets
	Current assets
	Cash and deposits	69,540	107,517
	Operational investment securities	63,532	79,547
	Investment loss reserves	(8,229)	(10,917)
	Securities	2,500		－
	Other	1,078	1,307
	Total current assets	128,421	177,455
	Non-current assets
	Property, plant and equipment
	Buildings, net				332		295
	Furniture and fixture	102	75
	Total property, plant and equipment	435	370
	Intangible assets
	Software	222	228
	Total intangible assets	222	228
	Investments and other assets
	Investment securities	92,131	83,578
	Investments in capital				0		0
	Long-term loans receivable	117	162
	Deferred tax assets	334	193
	Other				396		394
	Total investments and other assets	92,980	84,329
	Total non-current assets	93,637	84,928
	Total assets				222,059		262,383

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JAFCO Group Co., Ltd.

														(Millions of yen)
								As of March 31, 2020				As of March 31, 2021
	Liabilities
	Current liabilities
	Current portion of long-term borrowings				234				15
	Income taxes payable				4,344				17,124
	Provision for bonuses				226				257
	Allowance for extraordinary compensation for							89					86
	directors
	Other				2,688				2,867
	Total current liabilities	7,582			20,351
	Non-current liabilities
	Long-term borrowings				15				100
	Retirement benefit liability				434				427
	Deferred tax liabilities				25,528				26,148
	Other				132				119
	Total non-current liabilities	26,110			26,794
	Total liabilities				33,693				47,145
	Net assets
	Shareholders' equity
	Share capital				33,251				33,251
	Capital surplus				32,806				32,806
	Retained earnings				67,643				102,497
	Treasury shares				(7,587)				(17,741)
	Total shareholders' equity	126,113			150,813
	Accumulated other comprehensive income
	Valuation difference on available-for-sale						61,529						63,688
	securities
	Foreign currency translation adjustment				723				735
	Total accumulated other comprehensive income	62,252			64,424
	Total net assets		188,366				215,237
	Total liabilities and net assets		222,059			262,383

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JAFCO Group Co., Ltd.

(2) Consolidated Statements of Income and Consolidated Statement of Comprehensive Income (Consolidated Statements of Income)

						(Millions of yen)
				Fiscal year ended		Fiscal year ended
				March 31, 2020		March 31, 2021
	Net sales
	Revenue from operational investment securities	23,697	16,164
	Income from investment partnership management			6,155		5,340
	Other sales		1	6
	Total net sales	29,855	21,512
	Cost of sales
	Cost of operational investment securities	8,337	4,903
	Other costs		3,061	795
	Total cost of sales		11,399	5,699
	Gross profit	18,455	15,812
	(Reversal of) Additions to investment loss reserves			(514)		2,679
	(Reversal of) unrealized losses on operational	(88)	(150)
	investment securities
	Gross profit - net			19,059		13,284
	Selling, general and administrative expenses	4,088	4,319
	Operating profit			14,970		8,964
	Non-operating income
	Interest income	109	69
	Dividend income			2,040		1,409
	Foreign exchange gains			－	354
	Gain on investment in other funds			－	907
	Miscellaneous income			19		21
	Total non-operating income	2,169	2,761
	Non-operating expenses
	Interest expenses	1	1
	Foreign exchange losses	76		－
	Contribution to an investee			11		11
	Commission for purchase of treasury shares			－	5
	Miscellaneous losses	5	0
	Total non-operating expenses			94		18
	Ordinary profit	17,045	11,707
	Extraordinary income
	Gain on sale of investment securities			－		44,764
	Total extraordinary income			－	44,764
	Extraordinary losses
	Total extraordinary losses			－		－
	Profit before income taxes	17,045	56,471
	Income taxes - current			5,214		18,076
	Income taxes - deferred	(7)	(108)
	Total income taxes			5,206		17,967
	Profit	11,839	38,504
	Profit attributable to non-controlling interests			－		－
	Profit attributable to JAFCO Group Co., Ltd.	11,839	38,504
	stakeholders

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JAFCO Group Co., Ltd.

(Consolidated Statement of Comprehensive Income)

						(Millions of yen)
				Fiscal year ended		Fiscal year ended
				March 31, 2020		March 31, 2021
	Profit			11,839		38,504
	Other comprehensive income
	Valuation difference on available-for-sale securities	16,809	2,159
	Foreign currency translation adjustment			(31)		11

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to Comprehensive income attributable to JAFCO Group Co., Ltd. stockholders Comprehensive income attributable to non- controlling interests

16,777	2,171
28,616	40,675
28,616	40,675
	－		－

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JAFCO Group Co., Ltd.

1. Consolidated Statements of Changes in Shareholders' Equity Previous Consolidated Fiscal Year (April 1, 2019 - March 31, 2020)

(Millions of yen)

				Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders'
	equity
Balance at beginning of current	33,251	32,806	59,268	(7,586)	117,739
period
Change of items during the
period
Dividends of surplus				(3,464)			(3,464)
Profit attributable to JAFCO
Group Co., Ltd.				11,839			11,839
stockholders
Purchase of treasury shares						(1)	(1)
Net change of items other
than shareholders' equity
Total change of items during	－	－	8,374	(1)	8,373
the period
Balance at end of period	33,251	32,806	67,643	(7,587)	126,113
	Other accumulated comprehensive income
						Total
	Valuation	Foreign currency		Total other
	difference on		accumulated		net assets
	translation
	available-for-sale		comprehensive
	adjustment
	securities		income
Balance at beginning of current	44,719	755		45,475		163,215
period
Change of items during the
period
Dividends of surplus						(3,464)
Profit attributable to JAFCO
Group Co., Ltd.						11,839
stockholders
Purchase of treasury shares						(1)
Net change of items other	16,809	(31)		16,777		16,777
than shareholders' equity
Total change of items during	16,809	(31)		16,777		25,151
the period
Balance at end of period	61,529	723		62,252		188,366

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JAFCO Group Co., Ltd.

Current Consolidated Fiscal Year (April 1, 2020 - March 31, 2021)

									(Millions of yen)
				Shareholders' equity
	Share capital	Capital surplus	Retained earnings		Treasury shares	Total shareholders'
		equity
Balance at beginning of period	33,251	32,806	67,643		(7,587)	126,113
Changes during period
Dividends of surplus				(3,649)				(3,649)
Profit attributable to JAFCO
Group Co., Ltd.				38,504				38,504
stockholders
Purchase of treasury shares							(10,154)	(10,154)
Disposition of treasury				(0)		0	0
shares
Net changes in items other
than shareholders' equity
Total changes during period	－	－	34,854		(10,154)	24,700
Balance at end of period	33,251	32,806	102,497		(17,741)	150,813
	Accumulated other comprehensive income
	Valuation			Total	Total net
	Foreign currency		accumulated
	difference on			assets
	translation		other
	available-for-sale
	adjustment		comprehensive
	securities
			income
Balance at beginning of period	61,529	723		62,252		188,366
Changes during period
Dividends of surplus						(3,649)
Profit attributable to JAFCO
Group Co., Ltd.						38,504
stockholders
Purchase of treasury shares						(10,154)
Disposition of treasury						0
shares
Net changes in items other	2,159	11		2,171		2,171
than shareholders' equity
Total changes during period	2,159	11		2,171		26,871
Balance at end of period	63,688	735		64,424		215,237

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JAFCO Group Co., Ltd.

(4) Consolidated Statements of Cash Flows

						(Millions of yen)
				Fiscal year ended		Fiscal year ended
				March 31, 2020		March 31, 2021
	Cash flows from operating activities
	Profit before income taxes	17,045	56,471
	Depreciation			189		192
	Increase (decrease) in allowance for investment loss	(514)	2,679
	Increase (decrease) in provision for bonuses	31	30
	Increase (decrease) in allowance for extraordinary			－	(2)
	compensation for directors
	Increase (decrease) in retirement benefit liability	(18)	(7)
	(Reversal of) unrealized losses on operational	(88)	(150)
	investment securities
	Interest and dividend income	(2,149)	(1,478)
	Interest expenses			1		1
	Foreign exchange losses (gains)	151	(500)
	Loss (gain) on sale of investment securities			－	(44,764)
	Gain on investments in other funds			－		(907)
	Decrease (increase) in investment securities for sale	(5,340)	(7,881)
	Other, net		2,325	424
	Subtotal		11,632	4,107
	Interest and dividends received	2,149	1,478
	Interest paid	(1)	(1)
	Income taxes paid		(2,396)		(5,576)
	Income taxes refund		793	0
	Net cash provided by (used in) operating activities	12,177	8
	Cash flows from investing activities
	Purchase of property, plant and equipment	(88)	(55)
	Purchase of intangible assets		(84)		(72)
	Proceeds from sale of investment securities	41	48,253
	Long-term loan advances	(128)	(62)
	Proceeds from collection of long-term loans			18		17
	receivable
	Payment for investments in other funds			－	(176)
	Proceeds from share of profits on investments in			－		1,295
	other funds
	Increase in other investments and assets	(41)	(50)
	Decrease in other investments and assets			5		5
	Net cash provided by (used in) investing activities	(277)	49,154
	Cash flows from financing activities
	Proceeds from long-term borrowings			－		100
	Repayments of long-term borrowings	(116)	(234)
	Dividends paid	(3,464)	(3,650)
	Purchase of treasury shares		(1)		(10,160)
	Proceeds from sale of treasury shares			－	0
	Net cash provided by (used in) financing activities		(3,581)	(13,944)
	Effect of exchange rate change on cash and cash	(156)	258
	equivalents
	Net increase (decrease) in cash and cash equivalents			8,162		35,476
	Cash and cash equivalents at beginning of period		63,878	72,040
	Cash and cash equivalents at end of period	* 72,040	* 107,517

*see notes (i) (ii) on P16

15

JAFCO Group Co., Ltd.

(5) Notes for Consolidated Financial Statements

(Notes on premise of going concern) None

(Related to consolidated statements of income)

Selling, general and administrative expenses (major items)

		(Millions of Yen)
	For the year ended	For the year ended
	March 31, 2020	March 31, 2021
Directors' compensation	201	199
Allowance for extraordinary compensation for directors	89	84
Salaries	1,249	1,181
Bonuses to employees	446	392
Retirement benefit expenses	90	83
Rental expenses	197	189
Taxes and dues	592	1,192

(Related to consolidated statements of cash flows)

1. Relationship between the balance of cash and cash equivalents as of the year-end and the items stated in the consolidated balance sheets

		(Millions of Yen)
	For the year ended	For the year ended
	March 31, 2020	March 31, 2021
Cash and time deposits	69,540	107,517
Securities	2,500	-
Cash and cash equivalents	72,040	107,517

(ii) Breakdown of JAFCO's interest of cash and cash equivalents in funds

		(Millions of Yen)
	For the year ended	For the year ended
	March 31, 2020	March 31, 2021
Cash and time deposits	5,776	7,843
Securities	－	－
Cash and cash equivalents	5,776	7,843

1. The Company Group's uncalled commitments to funds managed by the Company Group as of March 31, 2021 were ¥31,624 million, compared with ¥31,939 million as of the end of previous full year.

(Segment information)

Previous consolidated fiscal year (April 1, 2019 -March 31, 2020) and current consolidated fiscal year (April 1, 2020 -March 31, 2021)

Since the JAFCO Group carries out managements of funds as a single business segment, business segment information is not presented.

(Notes on marketable securities)

1. Held-to-maturitybonds None

16

JAFCO Group Co., Ltd.

(ii) Available-for-sale securities					(Millions of Yen)
			As of March 31, 2020		As of March 31, 2021
		Type
		Figures on the	Acquisition cost		Difference	Figures on the	Acquisition cost	Difference
			consolidated B/S		consolidated B/S
	Operational
	investment securities
	(1)	Stock	7,983	856		7,126	16,444	1,594	14,850
	(2)	Bond	-	-		-	-	-	-
	(3)	Others	-	-		-	-	-	-
		Subtotal	7,983	856		7,126	16,444	1,594	14,850
Securities	Investment securities
(1)	Stock	90,480	9,319		81,160	82,156	5,851	76,305
whose B/S
amount	(2)	Bond	-	-		-	-	-	-
exceeds	(3)	Others	-	-		-	-	-	-
acquisition
cost		Subtotal	90,480	9,319		81,160	82,156	5,851	76,305
	Marketable securities
	(1)	Stock	-	-		-	-	-	-
	(2)	Bond	-	-		-	-	-	-
	(3)	Others	-	-		-	-	-	-
		Subtotal	-	-		-	-	-	-
		Total	98,463	10,175		88,287	98,601	7,445	91,156
	Operational
	investment securities
	(1)	Stock	487	638		(151)	-	-	-
	(2)	Bond	-	-		-	-	-	-
	(3)	Others	-	-		-	-	-	-
		Subtotal	487	638		(151)	-	-	-
Securities	Investment securities
(1)	Stock	34	51		(17)	21	32	(10)
whose B/S
amount	(2)	Bond	-	-		-	-	-	-
falls below
acquisition	(3)	Others	-	-		-	-	-	-
cost		Subtotal	34	51		(17)	21	32	(10)
	Marketable securities
	(1)	Stock	-	-		-	-	-	-
	(2)	Bond	-	-		-	-	-	-
	(3)	Others	2,500	2,500		-	-	-	-
		Subtotal	2,500	2,500		-	-	-	-
		Total	3,021	3,190		(168)	21	32	(10)
	Grand total	101,485	13,366		88,118	98,622	7,477	91,145

17

JAFCO Group Co., Ltd.

(Millions of Yen)

Note: 1. The following items are not included in the above table because they have no market value, making it difficult to determine fair value.

											(Millions of Yen)
						As of March 31, 2020		As of March 31, 2021
					Figures on the consolidated B/S		Figures on the consolidated B/S
	Available-for-sale securities
	Operational investment securities
	Unlisted stock						53,352			61,060
	Unlisted domestic and foreign bonds				938			1,271
	Others						770			770
	Investment securities
	Unlisted stock						776			794
	Others						647			412
(iii) Available-for-sale securities which were sold			(Millions of Yen)
			For the year ended March 31, 2020	For the year ended March 31, 2021
			Proceeds	Total gain on		Total loss on	Proceeds		Total gain on	Total loss on
			from sale	sale		sale	from sale		sale	sale
	Operational		23,540	19,418		(3,994)	16,074		11,912	(742)
	investment securities
	Investment securities		39	8		(11)	48,257		44,767	－
	Total		23,579	19,427		(4,006)	64,331		56,680	(742)

(iv) Impairment of securities

In the current fiscal year, no impairment losses (write-down of acquisition cost) were recorded on available-for-sale securities (including those which are extremely difficult to determine fair value). Impairment losses of ¥221 million on available-for-sale securities (all operational investment securities) were recorded in the previous year.

18

JAFCO Group Co., Ltd.

(Per share information)

For the year ended		For the year ended
March 31, 2020		March 31, 2021
Net assets per share [¥]	6,089.99	Net assets per share [¥]	7,316.12
Profit per share [¥]	382.76	Profit per share [¥]	1,249.43

Notes: 1. Fully diluted profit per share is not shown because there are no dilutive potential shares. 2. Profit per share is calculated based on the following data.

	For the year ended	For the year ended
	March 31, 2020	March 31, 2021
Profit per share
Profit attributable to JAFCO Group Co.,	11,839	38,504
Ltd. stockholders (¥ million)
Amount not appertaining to	－	－
common stock shareholders (¥ million)
Profit related to common shares attributable	11,839	38,504
to JAFCO Group Co., Ltd. stockholders
(¥ million)
Weighted average number of common	30,930	30,817
shares (thousand shares)

(Significant subsequent events) None

19

JAFCO Group Co., Ltd.

4. Other Information

1. Investments and IPOs
2. 1. Investments

(Millions of Yen)

		Year ended March 31, 2020	Year ended March 31, 2021
			(A)		(B)	Comparison (%)
		Amount		No. of	Amount		No. of	(B) / (A)
		(A)		companies	(B)		companies
Equity
	(Japan)	24,883		35	21,491		35	86.4
	(USA)	8,425		24	7,637		18	90.6
	(Asia)	1,459		12	3,684		13	252.4
	Total	34,769		71	32,813		66	94.4

	Notes: 1. Investment amount is a total of investments by the Company Group and funds.
	2. Investments denominated in foreign currencies are translated into yen on a quarterly basis using the
	exchange rate at the end of each quarter.
	3．Overseas investments made in the venture investment division in Japan are included in Japan.
(ii) IPOs
(Japan)		(Millions of Yen)
		For the year ended March 31, 2020	For the year ended March 31, 2021
	Number of IPOs	3	5
	Investment cost (1)	1,293	2,388
	Market value at IPOs (2)	13,396	35,210
	Multiple (2)/(1)	10.4	14.7

Notes: 1. "Investment cost" and "Market value at IPO" are total amounts by the Company Group and funds.

2. "Market value at IPO" is calculated by multiplying the number of shares held prior to the IPO by first price.

(Overseas)		(Millions of Yen)
	For the year ended March 31, 2020	For the year ended March 31, 2021
Number of IPOs	1	1
Investment cost (1)	886	302
Market value at IPOs (2)	13,881	2,315
Multiple (2)/(1)	15.7	7.7

Notes: 1. "Investment cost" and "Market value at IPO" are total amounts by the Company Group and funds. Exchange rate at the time of IPO is used for conversion.

2. "Market value at IPO" is calculated by multiplying the number of shares held prior to the IPO by first price.

20

JAFCO Group Co., Ltd.

(2) Establishment of Funds

Year ended March 31, 2021 (April 1, 2020 - March 31, 2021)

(i) Newly established funds:

	(Millions of USD)
Fund name	Total commitments as of
March 31, 2021
Icon Ventures VII, L.P.	178
Note: Fundraising still underway

(ii) Funds established in previous years whose total commitments increased in this period

(Millions of TWD)

	Fund name	Total commitments	Total commitments	Increase in
	as of	as of
	commitments
		March 31, 2021	March 31, 2020
	JAFCO Taiwan I Venture	2,006*	1,037	969
	Capital Limited Partnership
*Yen equivalent using the exchange rate as of March 31, 2021: ¥7,803 million

Previous full year (April 1, 2019 - March 31, 2020)

(i) Newly established funds:

	(Millions of yen)
Fund name	Total commitments as of
March 31, 2020
JAFCO SV6 Fund Series	80,000
	(Millions of TWD)
Fund name	Total commitments as of
March 31, 2020
JAFCO Taiwan I Venture	1,037 *
Capital Limited Partnership

*Yen equivalent using the exchange rate as of March 31, 2020: ¥3,681 million

1. Funds established in previous years whose total commitments increased None

21