1 Index

1. Financial Performance ・・・・・・03 – 13

2. Investment Activity ・・・・・・14 – 21

3. Assets under Management ・・・・・・22 – 23

4. Our Mission ・・・・・・24

5. Appendix ・・・・・・25 – 33

6. Disclaimer ・・・・・・34

Consolidated financial information reflects only JAFCO's interests.

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. Risks and uncertainties including changes to economic circumstances may cause results and projections to differ materially from those presented in the document. The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAFCO or JAFCO-operated funds. JAFCO holds all rights to this document. With the exception of material taken from other sources, no part of the document may be used or reproduced for any purpose whatsoever without prior permission.

2 Summary of the year ended March 31, 2018

Operating environment ► Although Nikkei stock average hit an all-time high since the economic bubble burst, the market turned unstable due to uncertainties at home and abroad ► In the IPO market, high-profile companies continued to attract funds from Japan and overseas ► Large funding rounds by startups increased Performance ► Capital gains totaling ¥13.6 billion on sale of listed/ unlisted shares (¥8.8 billion a year ago) ► Three major IPOs from SV4 portfolio Funds ► JAFCO committed additional ¥10 billion to SV5, bringing total fund size to ¥75 billion Investment ► ¥30.2 billion on a global basis (¥20.9 billion a year ago) ► Investment per company increased in scale Business structure ► Transformed into partnership model from corporate model Capitalization policy ► Buyback of all JAFCO shares held by Nomura and Nomura Research ; cancellation of 32.6% of shares outstanding prior to buyback, including existing treasury stock ► Shares outstanding after cancellation: 32.5 million shares, of which treasury stock accounts for 4.97% (1.6 million shares) 3 Financial Results (JAFCO’s interests)

(¥ Million) Year ended Year ended Year ended Comparison March 31, 2016 March 31, 2017 March 31, 2018 Total Total A Total B B/A Total net sales 41,155 27,857 29,470 106% Capital gains 15,689 8,800 13,621 155% Income from fund management 8,688 7,062 5,987 85% Management fees 3,812 3,494 3,551 102% Success fees 4,875 3,567 2,435 68% Additions to investment loss reserves 3,098 1,905 2,283 120% Reversal of investment loss reserves 3,673 4,741 3,148 66% SG&A expenses 5,689 5,476 6,017 110% Operating income 19,226 12,324 14,252 116% Ordinary income 19,808 13,666 15,554 114% Profit attributable to JAFCO Co., Ltd. 17,018 11,073 24,235 219% Stockholders

Extraordinary income on the partial sale of shareholdings in Nomura Research 4 Funds under Management

▶ Total commitments ▶ Net assets and distributions

(¥Billion) (¥Billion) 600 300 Extended Distributions Newly raised Under management Net assets 432.9 434.8 400 200 116.5 348.5 169.6 34.3 60.1 69.5 42.7 17.9 174.6 200 100 15.9 258.2 139.8 245.5 109.5 120.4 158.0

0 0 16.03 17.03 18.03 16.03 17.03 18.03

V2 (¥94 billion) was liquidated and SV3 (¥146.5 billion) entered the extension period

Exchange rate 16.03: US$1 = ¥112.68; 17.03: US$1 = ¥112.19 Note: 1. Figures are rounded to the nearest decimal place 18.03: US$1 = ¥106.24 2. JAFCO’s share in operating funds: 38.5% (16.03), 36.6% (17.03), 43.4% (18.03) 5 Capital Gains & Losses (JAFCO’s interests)

(¥ Billion) (¥Billion) 35 Capital Gains 13.6 Gains, net (Listed) 31.7 Listed 11.3 30 Gains (Unlisted) 27.2 Unlisted 2.3 25 Losses (Unlisted) 20 15 11.3 10.3 10.010.6 10 7.2 6.5 5.9 6.8 5 3.0 3.3 3.1 3.6 0

(5) (3.3) (3.6) (3.8) (4.9) (4.4) (10) (6.6) (7.5) (15) 12.03 13.03 14.03 15.03 16.03 17.03 18.03 Unrealized gains (¥ Billion) 3.9 7.2 38.9 15.2 6.5 11.7 9.9

Major IPOs and M&A of a buyout investment contributed to capital gains

Note: 1. Gains (Unlisted) include other portfolio-related revenues 3. “Unrealized gains” are unrealized capital gains on listed operational investment securities 6 2. Gains, net (Listed) and Losses (Unlisted) are after impairment losses 4. Figures are rounded to the nearest decimal place Realized Losses & Reversal of Reserves (JAFCO’s interests)

（2017.04-2018.03 ） (¥Million) Capital gains 13,621 ①Listed 11,281 Unlisted 2,340 (¥Million) ②Realized gains 6,750 Reversal of investment loss reserves 3,148 Sales of securities (gross of ③Realized losses (4,410) ③ 3,686 exchange difference shown below) Difference between the exchange (584) for reserve additions and sales Others 45

Realized losses were mostly covered, taking into account reserve addition/ reversal during the year and foreign currency effects 7 Investment Loss Reserves (JAFCO’s interests)

(¥Billion) (¥Billion) 100 Balance of unlisted securities (left scale) 10 Balance of investment loss reserves (left scale) Additions to investment loss reserves (right scale)

75 68.5 70.1 65.0 57.3 50.9 49.6 50 47.7 5 3.4 3.2 3.1 2.3 2.0 25 1.7 1.9

19.7 18.8 18.8 15.8 15.2 12.3 10.4 0 0 12.03 13.03 14.03 15.03 16.03 17.03 18.03

Reserve ratio 28.8% 26.9% 28.9% 27.5% 29.8% 25.9% 20.9%

Additions to investment loss reserves rose mainly overseas

Note: Figures are rounded to the nearest decimal place 8 Breakdown of Investment Loss Reserves (JAFCO’s interests)

(\Million) 2016.04- 2017.04- Reserve Policy 2017.03 2018.03 1. Company-by-company reserves: Additions to Investment Reserves made if estimated returns are below 70% of book value 1,905 2,283 Loss Reserves 2. General reserves： Reversal of Investment 4,741 3,148 Reserves on investees that are not subject to company-by- Loss Reserves company reserves (Investments made in and after January 2017 Investment Loss Reserve 12,332 10,351 are no longer subject to general reserves) Balance

Breakdown of the reserve balance (as of March 31, 2018) (\Million) Company-by-Company Reserves General Reserves Total Balance of 2017.3 Unlisted Portfolio Investments subject to Reserve Reserve Reserve Reserve Total Reserve unlisted Reserve （ Acquisition cost） reserve requirement balance ratio ratio balance reserve ratio holdings after ratio Region Investment No. of Investment No. of ① ② balance ③ reserves ③ balance co's balance co's A B C C/B C/A D C+D (C+D)/A A-C-D Japan 28,051 120 4,827 28 3,189 66.1% 11.4% 1,017 4,206 15.0% 23,845 21.4% U.S. 10,307 31 2,369 8 1,789 75.5% 17.4% 409 2,198 21.3% 8,109 26.4% Asia 9,386 67 4,014 35 2,935 73.1% 31.3% 247 3,182 33.9% 6,204 33.8% Subtotal 47,744 218 11,210 71 7,913 70.6% 16.6% 1,673 9,586 20.1% 38,158 25.3% Other funds 1,874 28 1,400 20 731 52.2% 39.0% 34 765 40.8% 1,109 37.6% Total 49,618 246 12,610 91 8,644 68.5% 17.4% 1,707 10,351 20.9% 39,267 25.9%

Reserve ratio fell as a result of significant increase in new investments

Exchange rate End of March 2017 : US$1 = ¥112.19 Note: 1. Acquisition cost is the book value after impairment losses (the same applies hereinafter) 9 End of March 2018 : US$1 = ¥106.24 2. Overseas life science investments (carried out by the venture investment division in Japan) are included in Japan VC-Backed IPO & JAFCO-Backed IPO (VC stake of 10% or more)

Bar graph (Co's) Left: VC-Backed IPO in Japan Right: Of which, JAFCO's portfolio (Co's) First price-based market cap. Less than \10B \10B-\30B \30B or more

40 35 36 4 30 8 28 3 22 15 21 1 13 7 20 17 4 17 17 15 15 2 13 1 3 9 3 1 5 2 5 5 10 2 17 17 18 6 14 4 9 5 12 13 1 12 3 9 9 1 3 6 4 0 3 3 2 12.03 13.03 14.03 15.03 16.03 17.03 18.03 All domestic IPOs 36 52 53 86 94 87 79 All JAFCO-Backed IPO 17 20 19 21 8 6 7 Total market value of VC/PE funds' holdings in IPOs (\billion) a 79.3 45.3 258.2 256.0 95.2 59.3 136.1 Market value of JAFCO's holdings in IPOs (\billion) b 5.4 10.5 70.3 49.5 8.3 6.5 23.3 JAFCO's share (market-value basis) b/a 7% 23% 27% 19% 9% 11% 17%

Seeking large scale IPOs through highly selective, intensive investment

Note: 1. Market values are rounded to the nearest decimal place 2. Table below includes VC holdings of less than 10%; buyouts are excluded from above market value 3. VC-Backed IPO: VC(s) holding 10% or more stake immediately prior to IPO 4. Market value : No. of shares at IPO application x first price (Compiled by JAFCO from IPO prospectuses) 10 JAFCO-Backed Domestic IPOs (Including fund investors’ interests) (\Million) 1Q(04-06) 2Q(07-09) 3Q(10-12) 4Q(01-03) Total Number of IPOs 1co 4co's 2co's ― 7co's Investment Cost A 198 1,748 79 ― 2,025 Market Value at IPO B 4,472 16,455 2,415 ― 23,343 Multiple B/A 22.6 9.4 30.3 ― 11.5

(¥Billion) First price-based CGs (left scale) (Co's) 70 64.2 No. of IPOs (right scale) 60 21 50 20 19 17 40 30 40.1 8 7 20 6 10 6.8 5.7 0.6 15.5 21.3 0 12.03 13.03 14.03 15.03 16.03 17.03 18.03 Investment Multiple 1.1x 2.8x 6.0x 5.3x 3.2x 4.0x 11.5x

Three major IPOs from SV4 portfolio

Note: 1. CG stands for Capital Gain 11 2. Market value at IPO is calculated by multiplying the first price with the number of shares held by JAFCO prior to IPO JAFCO-Backed Overseas IPOs (Including fund investors’ interests) (\Million) 1Q(04-06) 2Q(07-09) 3Q(10-12) 4Q(01-03) Total Number of IPOs ― ― ― 1co 1co Investment Cost A ― ― ― 380 380 Market Value at IPO B ― ― ― 538 538 Multiple B/A ― ― ― 1.4 1.4

(¥Billion) First price-based CGs (left scale) (Co's) 50 No. of IPOs (right scale) 41.3 40 6 6 6 30

20 3 3 2 10.5 1 10 7.0 6.4 2.4 2.5 0.2 0 12.03 13.03 14.03 15.03 16.03 17.03 18.03 Investment Multiple 4.5x 4.7x 8.9x 3.7x 2.5x 3.9x 1.4x

Note: 1. CG stands for Capital Gain 3. Market value at IPO is calculated by multiplying the first price 12 2. Conversion: Exchange rate at the time of IPO with the number of shares held by JAFCO prior to IPO Income from Fund Management vs SG&A Expenses (JAFCO’s interests)

(¥Billion) 8.7 Fund management fees 8.0 Success fees SG&A expenses 7.1 6.3 6.0 6.0 4.9 1.2 5.2 3.6 4.5 0.6 2.4 0.1 4.2 4.0 0.1

5.8 5.7 6.0 4.5 5.1 5.7 4.4 4.6 5.5 2.0 4.4 4.1 3.8 3.5 3.6

0.0 12.03 13.03 14.03 15.03 16.03 17.03 18.03

No. of employees (consolidated basis) 175 167 159 162 159 152 148

Note :1. Figures are rounded to the nearest decimal place 13 2. Income from management of JAFCO’s interests in funds is excluded from the above fund management fees Global Investment Structure (Including fund investors’ interests)

Overall balance of unlisted securities: ¥115.9 billion (218 co's)

Asia Japan U.S.A.

 Balance of unlisted ：¥21.3 billion  Balance of unlisted ：¥60.2 billion  Balance of unlisted ：¥34.4 billion securities (67 co's) securities (120 co's) securities (31 co's)  Investment team members ： 8  VC team members ：38 (110 co's)  Investment team members ： 5  Buyout team members ：11 ( 10 co's)  BD team members ： 2  Venture Partners ： 4  ： BD team members 12  BD team members ： 2

BD teams focus on value adding and exits activity by cooperating with investment teams

Exchange rate End of March 2018: US$1 = ¥106.24 2. Balance of unlisted securities: as of March 31, 2018 (acquisition cost basis); No. of members: as of April 1, 2018 Note: 1. BD stands for Business Development 3. Overseas life science investments (carried out by the venture investment division in Japan) are included in Japan 14 Investment Amount (Including fund investors’ interests)

(\Million) Year ended__ Year ended__ Comparison March 31, 2017 A March 31, 2018 B B/A 2016.04-2017.03__ 2017.04-2018.03__ Amount No. of co's Amount No. of co's

Japan 15,180 33 18,057 37 119.0%

Venture Investment (11,051) (32) (12,166) (32) 110.1%

Buyout Investment (4,128) (1) (5,890) (5) 142.7%

U.S. 3,938 12 7,101 19 180.3%

Asia 1,786 10 5,063 11 283.5%

Total 20,904 55 30,222 67 144.6%

Note: Overseas life science investments (carried out by the venture investment division in Japan) are included in Japan 15 Investment Activity (Including fund investors’ interests)

(¥Billion) 35 U.S. Asia Japan - Buyout Japan - VC 30.2 30 7.1 25 22.7 21.6 20.5 20.9 21.4 20.9 20 4.9 5.1 3.7 5.0 3.9 5.5 8.7 3.6 1.8 15 4.7 4.2 5.9 2.0 2.6 4.1 2.3 3.9 10 4.4 3.5 0.5 12.1 12.2 10.1 11.1 5 8.1 8.5 8.7

0 12.03 13.03 14.03 15.03 16.03 17.03 18.03

Investment outpaced annual investment target, which rose after additional commitments to SV5

Note: 1. Figures are rounded to the nearest decimal place 16 2. Overseas life science investments (carried out by the venture investment division in Japan) are included in Japan Investments by Sector (New and follow-on investment in Japan; Including fund investors’ interests)

▮ Investment Amount ▮ No. of Companies 2017.04-2018.03

Services Services 3% Electronics 3% Medical/ Biotech Medical/ Biotech 7% 3% 6% Electronics 10%

Software 17% Software 16% ¥11.8 31 Billion Companies

IT Services IT Services 70% 65%

Note: 1. Amount is rounded to the nearest decimal place 2. Overseas life science investments (carried out by the venture investment division in Japan) and buyout investments are excluded 17 Investment Activity

New Investments in Japan (Including fund investors’ interests)

▮ By Sector ▮ By Stage 2017.04-2018.03

Medical/Biotech Electronics Middle 6% 12% 12% Start-up 4% 9% Software 20% 11% 13% 26% 16 cos 16 cos 44% ¥7.3B ¥7.3B 76% 54% 44% 69% Amount Amount Early Companies Companies IT Services

Invested in various start-ups that shake up existing industries through digital revolution

Note: Overseas life science investments (carried out by the venture investment division in Japan) and buyout investments are excluded 18 Global Portfolio (by region, sector; Including fund investors’ interests)

▮ By Region ▮ By Sector

Distribution/Retail/ Services, etc. 11% Manufacturing Electronics Asia 4% 10% 18% Medical/Biotech 3% Software 16% ¥115.9 ¥115.9 Japan Billion 52% Billion U.S.A. 30% IT Services 56%

Exchange rate End of March 2018 : US$1 = ¥106.24 Note:1. Acquisition cost basis, amounts are rounded to the nearest decimal place 2. Overseas life science investments (carried out by the venture investment division in Japan) are included in Japan 3. Balance of foreign currency-denominated investments in Japan is converted using the exchange rate at the time of acquisition 19 Overseas Operations

（U.S.A.） （Asia）  New investments totaling US$51  Final closing of a new fund at US$140 million in 4 companies in IT service million and software sectors  China-based subsidiary established to  Final closing of a new fund at manage part of the new fund through US$262.5 million RMB fund

[US funds: Investment balance breakdown by sector] [Asian funds: Investment balance breakdown by country]

Social Other Other Media 2% India 7% 8% 5% South Security Software Korea 16% 39% China 13% 45%

Internet Service Taiwan 19% 30% Mobile 16%

(Both charts are as of Mar. 31, 2018) 20 Highly Selective, Intensive Investment (New venture investments in Japan; Including fund investors’ interests)

（¥Million） Average investment amount (left scale) （Share）

600 Average shareholding including dilutive shares (right scale)

500 457 439 25% 400 24% 24% 20% 20% 300 269 262 17% 17% 15% 294 200 175 267 231

100

0 11.03 12.03 13.03 14.03 15.03 16.03 17.03 18.03 No. of co's 31 27 12 21 21 21 18 16 Post-Money Valuation (\Million) 870 1,112 1,038 1,587 1,537 1,473 1,866 2,722

Fundraising size of promising start-ups increased with surging pre-money valuations

Note: 1. Buyout investments are excluded from the above chart. 2. Overseas life science investments (carried out by the venture investment division in Japan) are excluded 21 3. Investment in a large-scale / later-stage company is excluded from FY13.03 figures Assets under Management (Balance of unlisted investments; Including fund investors’ interests)

(¥Billion)

200 183.0 169.6 166.9 151.2 150 128.3 130.2 130.3 127.0 115.2 115.9 40.1 46.7 49.5 114.7 108.3 616 46.9 96.9 94.6 100 525 88.0 88.9 49.7 41.9 428 43.3 42.2 334 50 256 190 152 120

88.1 83.5 80.8 67.8 47.2 44.7 46.7 52.7 0 11.03 12.03 13.03 14.03 15.03 16.03 17.03 18.03 Overseas: fair value (after markdowns) Domestic: fair value (after markdowns) Total: Acquisition cost basis No. of companies (domestic)

Assets under management bottomed out due to progress in highly selective, intensive investment and liquidation activity

Note: 1. Figures are rounded to the nearest decimal place 3. Figures for fair value-based balance reflect only markdowns and not markups 22 2. Exchange rate: US$1 = ¥106.24 for all periods 4. Overseas life science investments (carried out by the venture investment division in Japan) are included in Japan Breakdown of Assets as of March 31, 2018 (JAFCO’s interests)

(Uncalled commitments to funds 21.5) (\Billion) Interest bearing liabilities 1.0 Cash & cash equivalents 70.1 Other liabilities 30.3 2017.03 Of which, cash in funds 8.1 Capital stock & Other assets 2.2 66.1 66.1 capital surplus Operational investment 11.7 securities - listed 79.1 Total Retained earnings 54.0 108.0 Total Invest- Investment securities [90.3] 67.4 net net ments - listed assets Treasury stock (7.6) (20.1) assets Operational investment securities - unlisted 49.6 39.3 Valuation difference 48.0 53.8 (acquisition cost) [35.3] 119.2 Investment loss reserves (10.4) 160.3 207.9 Investment securities Currency exchange 0.9 (83.7%) (0.1) 0.1 (87.4%) - unlisted adjustment

Total assets 191.6 Total liabilities and net assets 191.6

JAFCO’s market capitalization: ¥155.9 billion Share price: ¥5,040 Net asset per share: ¥5,182 (March 31, 2018 closing price; excluding treasury stock)

Stock buyback/ cancellation led to sharp decreases in retained earnings and treasury未更新 stock

Note:1. Figures are rounded to the nearest decimal place 3. . [ ] :as of March 31, 2017 23 2. Acquisition cost is the book value after impairment losses Our Mission / Identity / Value

-Mission- Commit to new business creation and jointly shape the future

Since establishment, JAFCO has created various innovative products and services jointly with entrepreneurs. Our mission is to open up new frontiers with our stakeholders by committing to creating new businesses that are in demand.

-Identity- CO-FOUNDER

At the startup stage, JAFCO is expected to play the same role as “CO-FOUNDER.” We will pass on and develop JAFCO spirit, expertise and experiences built up since inception to allow each member to be a resourceful “Co-Founder.”

-Value- Challenge and Trust and Value Creation Quest Contribution

24 Appendix

25 Gross ROI (JAFCO’s interests)

(¥Billion) Revenue from operational investment securities 60 Cost of operational investment securities Gross ROI 3.4 50

2.6 40 2.5 2.4

2.0 2.0 1.9 30 1.8 1.7 1.7 1.6 1.5

20 1.1 0.9 1.0 1.0 0.7 0.8 10

0 01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3

26 Operating Asset Breakdown

As of March 31, 2018 (\Billion) [ ]: As of March 31, 2017 Total investment balance 120.9 [119.6]

Investment balance of funds 117.0 [114.2] Total 72.3 [91.4]

(A) (B) Direct JAFCO’s interests Other investors’ interests in funds Cash in funds Uncalled commitments investment by JAFCO in funds to funds 3.8 47.8 69.2 23.9 48.4 [5.4] [45.5] [68.7] [33.9] [57.5]

(C) Unrealized capital gains on listed stock 9.6 [11.4]

Cash in funds Uncalled commitments to funds Total operational investment securities (JAFCO’s interest) : (A)+(B)+(C)= 61.3 [62.3] (JAFCO’s interest) (JAFCO’s interest)

Of which, listed stock : 11.7 [14.6] 8.1 [9.4] 21.5 [19.4]

Note: 1. Figures are rounded to the nearest decimal place Exchange rate 2. Total investment balance is on an acquisition cost basis End of March 2017 : US$1 = ¥112.19 End of March 2018 : US$1 = ¥106.24 3. Direct investment by JAFCO includes investment in other funds 27 Proportion of Top 5 IPOs to Total Capital Gains (Domestic IPOs; Including fund investors’ interests)

 Top 5 IPOs make up large proportion of total capital gains (CGs)

(¥Billion) 70 Total CGs CGs from Top 5 IPOs No. of domestic IPOs

60 48

50 38 34 40 28 23 30 21 22 21 20 19 17 20 14 9 8 8 6 7 10 4

0 01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3

Proportion of 62% 66% 76% 97% 55% 63% 58% 93% -% 172% 100% 307% 70% 90% 85% 101% 98% 96% Top 5 IPOs

Note: CGs are calculated based on the assumption that entire capital gains on each IPO were realized in the year of IPO (first price basis)

28 Quarterly Financial Results (JAFCO’s interests)

(¥Million) 1Q 2Q 3Q 4Q Full Year 2017.04- 2017.07- 2017.10- 2018.01- 2017.04- 2017.06 2017.09 2017.12 2018.03 2018.03

Total net sales 10,515 7,247 5,554 6,152 29,470 Capital gains 5,474 2,789 1,821 3,534 13,621

Income from fund management 2,786 995 1,243 961 5,987 Management fees 1,027 984 968 571 3,551 Success fees 1,758 11 274 390 2,435

Additions to investment loss reserves 637 707 976 (37) 2,283 Reversal of investment loss reserves 448 1,480 1,102 116 3,148

SG&A expenses 1,486 1,670 1,291 1,568 6,017

Operating income 6,276 2,870 1,944 3,161 14,252 Ordinary income 7,061 2,959 2,477 3,056 15,554 Profit attributable to 5,236 14,518 1,965 2,515 24,235 JAFCO Co., Ltd. stockholders

29 Funds: Breakdown of Investors (Most immediate commitment basis)

Financial institutions JAFCO Est.2007/7 31% 40% SV3 ¥146.5B Business corporati Others ons 10% 19%

Financial institutions 18% Financial Est.2016/8 institutions Est.2013/3 JAFCO 32% JAFCO 43% 50% SV4 SV5 ¥60.0B ¥75.0B Business corporations Business 32% Others corporati 3% ons 22%

30 Fund Performance (Fully liquidated domestic funds) (¥Billion) Commitments Paid-in Distribution Multiple Net IRR Name of Fund Establishment End of Term (fund series) Capital B B / A (%) JAFCO No.1 1982.04 1993.12 - 1.6 5.2 3.3 16.7 JAFCO No.2 1982.07 1994.07 - 2.8 8.6 3.1 14.9 JAFCO No.3 1983.03 1995.03 - 7.0 24.7 3.5 17.2 JAFCO No.4 1984.06 1996.12 - 8.0 23.3 2.9 15.3 JAVP 1985.08 1998.09 - US$ 37M US$ 149M 4.1 24.7 JAFCO No.5 1985.12 1998.09 - 5.3 11.8 2.2 10.1 JAFCO No.6 1989.02 2001.02 - 5.0 5.0 1.0 - JAFCO G-3 1990.01 2002.01 - 14.0 13.6 0.97 - JAFCO G-4 1990.02 2002.02 - 10.5 10.3 0.98 - JAFCO R1(A)(B) 1991.04 2003.11 - 11.4 12.5 1.1 1.2 JAVP2 1992.03 2003.12 - US$ 68M US$ 79M 1.2 3.2 JAFCO G-5 1991.01 2004.03 - 12.2 16.9 1.4 4.2 JAFCO R2 1992.04 2004.06 - 5.2 7.6 1.5 4.4 JAFCO R3 1995.04 2007.06 - 5.0 11.9 2.4 12.9 JAFCO G6 (A)(B) 1995.04 2007.06 - 9.0 19.2 2.1 10.9 JAFCO G7 (A)(B) 1997.01 2008.12 - 12.2 18.9 1.5 6.2 JAFCO MBO1 1999.11 2009.12 - 28.0 32.9 1.2 4.0 JAFCO G8 (A)(B) 2000.03 2011.12 34.4 23.0 21.1 0.92 - JAFCO G-9(B) 2002.09 2014.12 23.0 11.5 12.2 1.1 0.9 JAFCO MBO2 2004.02 2014.12 50.0 44.3 52.3 1.2 5.0 JAFCO V-2(B) 2005.09 2017.12 94.0 26.0 22.0 0.85 - （ Close to Liquidation） JAFCO V-1(B) 2004.03 2016.12 53.7 26.3 23.4 0.89 -

（ Reference） Overseas Funds USITⅠ(US) 1994.11 2006.12 - 7.0 49.4 7.1 63.8 USITⅡ(US) 1997.06 2006.12 - 10.3 55.3 5.4 63.7 JATFⅠ(Asia) 2000.11 2012.03 - US$ 169M US$ 167M 0.99 - JATFⅡ(Asia) 2004.02 2014.12 - US$ 100M US$ 133M 1.3 6.7 JATFⅢ(Asia) 2005.12 2017.12 - US$ 168M US$ 195M 1.2 4.1 Note: Net IRR is calculated after subtracting management fees and success fees 31 Fund Performance (Main funds in operation)

As of March 31, 2018 [Preliminary basis]

Unit: Domestic (¥Billion), Asia/ US (US$Million) Total Net Asset Total Commitments Commitments Paid-in Capital Net IRR Multiple 2017.03 Name of Fund Establishment Distribution Value B+C (fund series) (fund) A (%) D/A Multiple B C D Domestic JAFCO SV-3(B) 2007.07 146.5 61.0 61.0 85.6 7.4 93.0 8.9 1.52 1.52 JAFCO SV-4(B) 2013.03 60.0 29.1 29.1 12.3 21.3 33.7 4.0 1.16 1.02 JAFCO SV-5(B) 2016.08 75.0 49.8 21.9 - 19.8 19.8 - 0.90 0.93

Asia JATF IV 2007.08 - 200 200 164 70 234 2.79 1.17 1.33 JATF V 2010.10 - 130 124 67 29 97 - 0.78 0.88 JATF VI 2013.03 - 150 143 39 200 238 17.34 1.67 1.04 JATF VII 2017.04 - 128 51 0 48 48 - 0.94 -

US Icon 2003.07 - 113 113 326 15 340 12.6 2.61 2.61 Icon II 2006.04 - 108 104 140 12 153 6.9 1.38 1.34 Icon III 2007.08 - 150 145 256 12 268 13.9 1.68 1.68 Icon IV 2010.02 - 150 150 19 117 136 - 0.91 1.03 Icon V 2012.05 - 260 228 91 183 274 5.8 1.16 1.24 Icon Ⅵ 2015.12 262.5 248 99 - 93 93 - 0.94 0.89

Note: 1. Net asset value of listed shares is based on term-end market value/ exchange rate. Unlisted shares are, in principle, only subject to markdowns (recording of unrealized losses) and not markups (recording of unrealized gains). Asian funds (except for 17.03) and US funds carry out markups based on local accounting standards. 2. Net IRR and multiples are calculated from the investors' point of view based on actual date/ amount of distribution and residual net assets as of the date of calculation. Total distribution of US funds includes success fee equivalents, which are excluded when calculating Net IRR and multiples. 32 JAFCO’s Stock Performance and Dividends

［ Consolidated］ 99.03 00.03 01.03 02.03 03.03 04.03 05.03 06.03 07.03 08.03 Term-end Share price (¥) 5,520 23,000 12,900 9,800 4,110 10,170 6,730 8,880 6,520 3,320

Net income per share (¥) (171) 155 307 107 (160) (116) 62 207 199 163

PER ― 148.9 42.1 91.4 ― ― 108.1 42.8 32.8 20.3

Net assets per share (¥) 1,931 2,087 2,864 3,359 2,441 2,631 2,607 3,111 3,120 2,841 PBR 2.9 11.0 4.5 2.9 1.7 3.9 2.6 2.9 2.1 1.2

Dividends (¥) 25 25 25 25 25 25 25 50 50 50 Dividends/Total 1.3 1.2 1.1 1.0 1.1 1.1 1.2 2.2 2.1 2.1 shareholders' equity

［ Consolidated］ 09.03 10.03 11.03 12.03 13.03 14.03 15.03 16.03 17.03 18.03 Term-end Share price (¥) 1,745 2,455 2,140 2,007 3,270 4,630 4,470 3,460 3,740 5,040

Net income per share (¥) (378) (49) 53 138 148 390 625 384 250 687

PER ― ― 40.8 14.6 22.0 11.9 7.2 9.0 15.0 7.3

Net assets per share (¥) 2,060 2,076 1,995 2,214 2,536 3,591 4,240 4,271 4,685 5,182 PBR 0.8 1.2 1.1 0.9 1.3 1.3 1.1 0.8 0.8 1.0

Dividends (¥) 50 50 25 25 25 25 100 100 100 107(E) Dividends/Total 2.3 2.7 1.4 1.3 1.2 1.1 3.7 3.1 2.9 3.0(E) shareholders' equity

• PER=Term-end share price/ Net income per share for the fiscal term PBR=Term-end share price/ Net assets per share for the fiscal term 33 Points to Consider Concerning Contributions to the Funds

[Fees]  Investors of the investment partnerships (the “Partnerships”) managed by JAFCO Co., Ltd. (“JAFCO”) will bear the actual organizational expenses up to 0.2%of the commitment amount or the contribution amount as the expenses to be indirectly borne upon the establishment of the Partnerships.  Investors will bear the management fee (up to 2.75% of the commitment amount or the contribution amount) (which includes the custodian fee) as the expenses to be borne during the period in which the investors hold the interests of the Partnerships). Investors may bear the success fee (up to 20% of profit of each business year in accordance with investment performance) and the administrative management fee (up to 0.3% per annum of the aggregate amount of the partnership assets) (which includes the custodian fee). In addition, investors may indirectly bear expenses incurred in connection with operating the business of the Partnership (actual expenses) and indirect expenses related to other funds in which the Partnership invests (different for each fund and so the amount cannot be specified).  The amount of the fees, etc. to be borne by investors is the sum of the fees, etc. described above and their corresponding consumption tax.

[Risks]  The Partnerships managed by JAFCO mainly invest in shares or other securities issued by domestic or foreign unlisted companies. Unlisted companies have a higher level of management or financial risk than listed companies. As a result, the nature of these companies is such that they are easily affected by changes in the Japanese economy and economic trends, as well as by trends and competitors in the industries. In addition, there is no guarantee that the Partnerships will be able to exit investment positions in the invested business entities through IPO, M&A, etc. Even if the shares of the invested business entities are listed or the invested business entities are subject to M&A, there is no guarantee that the invested funds will be increased and recovered. In addition, because the Partnerships invest in securities which have fluctuating prices, such as shares issued by companies that are mainly domestic or foreign unlisted companies, the Partnerships’ investment profits may be affected by price movements of underlying shares or exchange rate fluctuations if the Partnerships invest in shares, etc., issued by foreign companies. Furthermore, the Partnerships’ investment profits may be affected by the change of management or financial conditions of the issuer of the shares, etc. held by the Partnerships and the change of external valuation thereof. Due to such factors, the Partnerships’ investment profits may be adversely affected and the principal contributions may be lost.  Under the terms of the partnership agreements, no partner may transfer their partnership interest to any person without our prior written approval, except in the case of a transfer to any other partners, and therefore the recovery of the contributions may be restricted. For that reason, the price of partnership interest that an Investor plans to transfer may be less than the most recent amount corresponding to the shares in the partnership assets and thus the Investor may suffer loss.  The contribution amounts are non-refundable, except through distributions of the partnership assets as set forth in the partnership agreements. If the partnership assets are to be distributed due to the withdrawal of a partner from any of the Partnerships under the partnership agreements, since the Partnerships invest in unlisted and illiquid shares or other securities, a withdrawing partner may not request a refund of a portion of investments made by the Partnerships that corresponds to such partners’ interest in the Partnerships. A partner that withdraws from any of the Partnerships is only entitled to receive a refund of an amount equal to one half of the amount of the cash and cash equivalent of partnership assets prorated in accordance with its partnership interests. In such cases, the principal contributions may be substantially lost.

[Note]  The fees and risks above are provided based on a typical Partnership managed by JAFCO. Fees and risks may vary among the Partnerships. When contributing to any of the Partnerships, please be sure to refer, in advance, to the solicitation material of the relevant Partnerships such as documents delivered before the execution of the agreement.

JAFCO Co., Ltd. Financial Instrument Firm: Director-General of Kanto Local Finance Bureau (Kinsho) No. 1693 Member of Japan Investment Advisers Association, Type II Financial Instruments Firms Association 34