The original disclosure in Japanese was released on October 20, 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: +81-3-5223-7073
Tokyo 100-0004 Japan ir@jafco.co.jp
http://www.jafco.co.jp
October 20, 2017
Financial Results for the Six Months Ended September 30, 2017[Japanese GAAP]
(Summary of Japanese announcement)
(Japanese yen figures less than one million yen are rounded down)
- Consolidated Performance for the Six Months Ended September 30, 2017 (April 1, 2017 - September 30, 2017)
-
Consolidated Operating Results
Note: Comprehensive income Six months ended September 30, 2017:
¥12,851 million (
-%)
Six months ended September 30, 2016:
negative ¥1,262 million (
-%)
(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 six months ended September 30, 2017
17,763
49.8
9,147
86.2
10,020
90.0
19,754
293.9
For six months ended September 30, 2016
11,857
(51.8)
4,912
(67.2)
5,273
(65.0)
5,015
(56.8)
Profit per share [¥]
Fully diluted net income per share [¥]
For six months ended September 30, 2017
498.92
-
For six months ended September 30, 2016
113.04
-
- Consolidated Financial Position
Total assets [¥ million]
Net assets [¥ million]
Equity ratio [%]
Net assets per share [¥]
As of September 30, 2017
188,244
155,001
82.3
5,011.17
As of March 31, 2017
237,902
207,855
87.4
4,684.87
(Reference) Shareholders' equity As of September 30, 2017: ¥155,001 million
As of March 31, 2017: ¥207,855 million
-
Dividends
Dividend per share [¥]
(Record date)
End of 1Q
End of 2Q
End of 3Q
End of the year
Total
For the year ended March 31, 2017
-
-
-
100.00
100.00
For the year ending March 31, 2018
-
-
For the year ending
March 31, 2018 (Forecast)
-
-
-
Notes: The forecast of dividend amount is unfixed.
-
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 Changes in significant subsidiaries during this period: None
Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
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
Number of issued shares (common stock)
① Number of issued shares (including treasury stock)
As of September 30, 2017: 32,550,000 As of March 31, 2017: 48,294,336
② Number of treasury stock
As of September 30, 2017: 1,618,827 As of March 31, 2017: 3,926,884
③ Average number of shares
For six months ended September 30, 2017: 39,594,991
For six months ended September 30, 2016 44,367,645
*Disclosure regarding the implementation of audit procedures
This financial summary is not subject to quarterly review procedures by auditors.
*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, 2017 was released on JAFCO's website on October 20, 2017.
*Note to XBRLPlease 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 ResultsJAFCO posted net sales of ¥17,763 million, ordinary income of ¥10,020 million, and profit attributable to JAFCO Co., Ltd. stockholders of ¥19,754 million in the consolidated fiscal six months ended September 30, 2017. This compares with net sales of ¥27,857 million, ordinary income of ¥13,666 million, and profit attributable to JAFCO Co., Ltd. stockholders of ¥11,073 million for the previous full year ended March 31, 2017 (the "previous full year").
During the six months ended September 30, 2017, ¥18,348 million in gains on the partial sale of shares in Nomura Research Institute were recorded as extraordinary income.
(Outline of Investments)
The JAFCO Group and its funds made investments totaling ¥14,522 million (35 companies) in the six months ended September 30, 2017, compared with ¥20,904 million (55 companies) in the previous full year.
(Outline of Capital Gains and IPOs)
JAFCO posted ¥13,976 million in revenues from operational investment securities (previous full year:
¥20,774 million). Capital gains came to ¥8,264 million (previous full year: ¥8,800 million), out of which capital gains on listed shares were ¥5,233 million (previous full year: ¥6,499 million) and capital gains on unlisted shares were ¥3,031 million (previous full year: ¥2,301 million). This ¥3,031 million consisted of ¥5,406 million (previous full year: ¥5,893 million) in gains on sale and ¥2,375 million (previous full year: ¥3,592 million) in losses on sale.
There were five IPOs in Japan and none overseas by portfolio companies of the JAFCO Group and its funds (previous full year: six IPOs in Japan and three overseas).
(Millions of Yen)
For the year ended March 31,
2017 (A)
For six months ended September 30,
2016
For six months ended September 30,
2017 (B)
Annualized comparison [(B)×2]/(A) (%)
Revenues from operational investment securities (1)
20,774
9,467
13,976
134.6
Proceeds from sale of securities
20,533
9,359
13,889
135.3
Dividend and interest income
240
107
86
72.0
Cost of operational investment securities (2)
11,973
5,987
5,711
95.4
Cost of securities sold
11,973
5,987
5,711
95.4
Impairment
-
-
-
-
Capital gains (1) - (2)
8,800
3,479
8,264
187.8
Multiple (1) / (2)
1.74
1.58
2.45
-
Capital gains on listed shares
6,499
1,380
5,233
161.0
Capital gains on unlisted shares
2,301
2,099
3,031
263.5
Gains on sale
5,893
3,729
5,406
183.5
Losses on sale
3,592
1,630
2,375
132.2
(Outline of Investment Loss Reserves)
JAFCO makes investment loss reserves for operational investment securities after taking investees' business performance into consideration. Company-by-company reserves are made if the estimated recovery amount falls below 70% of acquisition cost. General reserves had been made to cover all other unlisted portfolio companies based on our accumulated expertise in private equity. However, investments made from January 2017 onward are no longer subject to general reserves because the quality of investments has enhanced and more accurate valuation has become possible as a result of the highly selective, intensive investment strategy.
Additions to investment loss reserves for the six months ended September 30, 2017 totaled ¥1,344 million, consisting of ¥1,897 million in company-by-company reserves and a reversal of ¥553 million in general reserves, compared with ¥1,905 million, ¥2,006 million and a reversal of ¥101 million respectively in the previous full year.
Company-by-company reserves were reversed by ¥1,929 million following the sale and impairment of securities in the six months ended September 30, 2017, compared with ¥4,741 million reversed in the previous full year. As a result, net additions to investment loss reserves were negative ¥584 million, compared with negative ¥2,835 million in the previous full year.
Balance of investment loss reserves came to ¥11,752 million (24.1% of the balance of unlisted operational investment securities) as of September 30, 2017, compared with ¥12,332 million (25.9% of the balance of unlisted operational investment securities) at the end of the previous full year.
(Millions of Yen)
For the year ended March 31,
2017 (A)
For six months ended September 30,
2016
For six months ended September 30,
2017 (B)
Annualized comparison [(B)×2]/(A) (%)
Additions to investment loss reserves (1)
1,905
687
1,344
141.1
Company-by-company reserves
2,006
609
1,897
189.1
(Reversal of) General reserves
(101)
78
(553)
-
Reversal of investment loss reserves (2)
4,741
2,695
1,929
81.4
Net additions = (1)-(2) (minus figures are reversals)
(2,835)
(2,007)
(584)
-
(Millions of Yen)
As of March 31, 2017
As of September 30, 2017
Balance of investment loss reserves
12,332
11,752
Company-by-company reserves
9,091
9,064
General reserves
3,241
2,688
Ratio for all unlisted operational investment securities
25.9%
24.1%
JAFCO Co. Ltd. published this content on 20 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 October 2017 06:21:08 UTC.
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