JAFCO Group (8595): FY2025 Results Summary — Capital Gains of ¥8.0 Billion as the Group Refocuses on Japan

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: JAFCO labels the year ended March 31, 2026 as “FY March 2026”; this site classifies the most recent completed full year as FY2025, and all labels in the text, tables and segment data below follow the company’s own presentation. JAFCO Group Co., Ltd. reported total net sales of ¥21.6 billion and net income of ¥6.6 billion for the year ended March 31, 2026, at 77% and 69% of the prior year respectively, with ROE of 4.8% against 7.1%. Capital gains on the sale of listed and unlisted shares were ¥8.0 billion, versus ¥12.5 billion in the same period last year, with 2 IPOs in Japan as IPOs on the TSE Growth Market decreased to 32 compared to 59 in the same period last year. The company completed the transfer of its Asian subsidiary JAFCO Investment (Asia Pacific) Ltd (JIAP) on October 31, 2025 and its US subsidiary JAFCO America Ventures Inc. (Icon) on January 6, 2026, recording approximately ¥2.7 billion of non-operating income and extraordinary income, and has transitioned to non-consolidated (standalone) financial statements starting from the third quarter of the fiscal year ending March 31, 2026.

Full-Year Results (Non-Consolidated)

JAFCO has transitioned to non-consolidated financial statements starting from the third quarter of the fiscal year ending March 31, 2026, and figures for prior periods are also presented on a standalone basis or as domestic figures excluding overseas funds. Total net sales were ¥21.6 billion (77% of the prior year) and gross profit ¥9.6 billion (61%). Within gross profit, capital gains were ¥8.0 billion (64%), of which the domestic portion was ¥9.5 billion (91%), and income from fund management was ¥3.6 billion (75%), comprising management fees of ¥3.2 billion (93%) and success fees of ¥0.4 billion (30%). SG&A expenses were ¥4.0 billion (98%), or ¥3.6 billion excluding business tax (101%). Operating income was ¥5.6 billion (46%), ordinary income ¥5.9 billion (45%) and net income ¥6.6 billion (69%). For Asian funds, results were recorded as capital gains up to 2Q of FY March 2026 and as non-operating gains/losses from 3Q of FY March 2026; for US funds, they were recorded as capital gains up to 3Q of FY March 2026.

Item [¥ billion]	Year ended March 31, 2026 (B)	Year ended March 31, 2025 (A)	B/A
Total net sales	21.6	28.2	77%
Gross profit	9.6	15.8	61%
Capital gains	8.0	12.5	64%
Domestic	9.5	10.4	91%
Income from fund management	3.6	4.8	75%
Management fees	3.2	3.5	93%
Success fees	0.4	1.3	30%
Other *	(1.1)	(1.5)	–
Additions to investment loss reserves	0.8	(0.3)	–
(Reversal of) unrealized losses on operational investment securities	0.2	(0.0)	–
SG&A expenses	4.0	4.1	98%
(SG&A expenses excluding business tax)	3.6	3.6	101%
Operating income	5.6	12.1	46%
Non-operating gains/losses	0.3	1.1	28%
Ordinary income	5.9	13.2	45%
Net income	6.6	9.6	69%
ROE	4.8%	7.1%	–

* Amount calculated by deducting “Other costs” from “Other sales.”

Profit Drivers (Domestic Only; Overseas Funds Excluded)

On a domestic-only basis excluding overseas funds, total capital gains amounted to ¥9.5 billion with a MOIC of 2.8x, from 2 IPOs: Izawa Towel (buyout investment) and Mirrativ (venture investment). The breakdown of capital gains was ¥6.5 billion from venture investment and ¥3.0 billion from buyout investment. Management fees in the fiscal year amounted to ¥3.1 billion, and management fees from fundraising for the new flagship fund SV8 Series will start contributing from the next fiscal year. Investment executed domestically totalled ¥19.4 billion, against ¥28.0 billion in the same period last year, comprising ¥13.4 billion of venture capital investment and ¥6.0 billion of buyout investment. JAFCO made new investments in 16 startup companies in Japan totalling ¥6.5 billion, drawn from 4,028 new contacts during the year.

Item (domestic only; overseas funds excluded)	FY March 2026	FY March 2025
Capital gains [¥ billion]	9.5	10.4
Gain (loss) on sale, net (listed) [¥ billion]	8.0	8.8
Gain (loss) on sale (unlisted) [¥ billion]	1.4	1.6
Gross MOIC	2.8x	2.2x
Number of IPOs	2	8
Unrealized gains on listed holdings [¥ billion]	17.2	16.3
Management fees [¥ billion]	3.1	3.3
Success fees [¥ billion]	0.4	1.3
Investment executed [¥ billion]	19.4	28.0
VC [¥ billion]	13.4	17.0
Buyout [¥ billion]	6.0	11.0
Net additions to investment loss reserves [¥ billion]	1.2	(1.1)
Balance of investment loss reserves [¥ billion]	8.9	7.7
SG&A expenses (excl. business tax) [¥ billion]	3.6	3.6
No. of employees	133	131

Fund Management, Balance Sheet and Net Assets

The balance of unlisted holdings stood at ¥151.9 billion across 192 companies (Venture: 173 / Buyout: 19), of which JAFCO’s interest was ¥46.3 billion. Total capital commitments (AUM) of domestic funds were ¥312.8 billion, of which external capital commitments were ¥173.8 billion. In December 2025 JAFCO established the SV8 Series, its first new flagship fund in three and a half years; approximately ¥58 billion has been raised so far toward a target fund size of ¥100 billion, with JAFCO’s target investment ratio at 20%. Cash and deposits were ¥61.2 billion and available cash and deposits ¥51.1 billion; after deducting ¥13.6 billion of uncalled commitments to funds the figure was ¥37.5 billion, and net available cash after further deducting ¥15.0 billion of CBs and long-term interest-bearing debts stood at ¥22.5 billion.

Item	FY March 2026	FY March 2025	Change
Net assets [¥ billion]	134.1	137.5	(3.4)
Capital stock/capital surplus [¥ billion]	66.1	66.1	–
Retained earnings [¥ billion]	53.3	57.8	(4.5)
Treasury shares [¥ billion]	(4.0)	(3.7)	(0.4)
Total shareholders’ equity [¥ billion]	115.4	120.2	(4.8)
Valuation difference, etc. [¥ billion]	18.7	17.3	1.4
Net assets per share [yen]	2,549	2,521	28
Ref. After-tax fair value valuation of domestic portfolio companies [yen]	2,817	2,672	145
Share price [yen]	2,260	2,073	188
Market capitalization [¥ billion]	118.9	113.1	5.8

Shareholder Returns

JAFCO completed ¥5 billion of share buybacks on October 23 and resolved to cancel 1,810,000 outstanding shares (3.2%), resulting in a current total of 54,250,000 outstanding shares. There is no change to the ¥66.5 year-end and ¥66.5 interim dividends, for ¥133 in annual dividends for FY March 2026; total dividends paid were ¥7.02 billion and the total return ratio was 107.6%. From FY March 2026 the dividend policy is to pay out the greater of 6% DOE, based on shareholders’ equity at the end of the previous fiscal year, or a 50% payout ratio. Projected (minimum) dividends for FY March 2027 are ¥133 (¥66.5 interim and ¥66.5 year-end).

Basic Policy for Enhancing Corporate Value: Medium- to Long-Term Targets

The presentation does not disclose a full-year earnings forecast for FY March 2027; instead it sets out medium-term targets for 2028.03-2030.03 and long-term targets for 2031.03-2033.03 under the Basic Policy for Enhancing Corporate Value. JAFCO states that its cost of shareholders’ equity is perceived to be roughly 7%, while average adjusted ROE over the past 5 years was 5.4% (down 0.6 pts YoY) and average PBR over the past 5 years was 0.8x, with PBR for 2026.03 at 0.9x. The financial target is an ROE of 15-20%, and the company says it will gradually implement initiatives to achieve its medium- to long-term goals in line with its approximately 3.5 year cycle of fund formation.

Item [¥ billion unless noted]	2026.03 (Results)	Medium-term targets 2028.03-2030.03	Long-term targets 2031.03-2033.03
Total capital commitments (AUM), domestic funds	312.8	320.0	370.0
External capital commitments	173.8	250.0	290.0
Annual management fees	3.1	3.9	4.2
JAFCO’s investment ratio in new domestic funds	35%	20%	20%
Annual SG&A expenses (excl. business tax)	3.6	3.5-4.0	3.5-4.0
Multiple on Invested Capital (MOIC), domestic	2.8x	3x	3x
Available cash and deposits	51.3	25.0	30.0
Operating investment securities (incl. listed cos. / after markdown)	37.3	80.0	65.0
Net assets	134.1	130.0	115.0
Ordinary income level	5.9	20.0	26.0
Net income level	6.6	14.0	18.0
ROE level	4.8%	10-15%	15-20%
Effective total payout ratio	108%	60-100% or more	60-100% or more

Topics

In FY March 2026 there were 2 IPOs from venture and buyout investments and 2 M&A exits. Having decided to focus on domestic investment as of April 23, 2025, JAFCO completed the transfer of JIAP on October 31, 2025 and Icon on January 6, 2026, and will continue to hold its investments in the existing funds managed by the Asian and US companies; those interests have been reclassified as investment securities, with a balance of ¥34.9 billion and ¥8.4 billion of uncalled commitments, and an additional ¥1.7 billion in investment loss reserves was recorded when reserves were reviewed on transfer. On sustainability, the company formulated its Human Rights Policy in May 2025, and in July 2025 formulated its ESG Investment Policy and became a PRI signatory. The company name is scheduled to be changed to JAFCO Co., Ltd., effective October 1, 2026.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.