Value Creation through Private Equity

							A Message from the New JAFCO President



 To All Our Shareholders,


 “Value Creation through Private Equity”



                                  On January 1, 2010, I became the president of JAFCO Co., Ltd.

                                  I would like to take this opportunity to thank all shareholders

                                  for your support.



                                  Although the stock market turmoil resulting from the worldwide

                                  economic downturn is showing signs of abating, the domestic IPO

                                  market, which is the main exit for our investments, was at a

 Shinichi Fuki, President & CEO   31-year low last year and remains extremely subdued. Also, the

 operating environment of our unlisted investees remains as severe as ever, hit hard by the

 weak economy, further contributing to the difficult conditions that greet our new

 management team.



 JAFCO is in a position to ride out the turmoil and create opportunities from the current

 economic difficulties. We will reexamine each stage of the Private Equity Value Chain (see

 the chart below) and strive to create value through a flexible approach to existing concepts.


                                        JAFCO’s PE value chain




 Currently, Japan is facing an aging society and other changes to its social structure as well as

 changes to the global economic structure resulting from the rise of developing nations. The
emergence of companies and entrepreneurs who embrace new values is vital for Japan to

continue along a path of economic growth.



We are seeing a higher number of entrepreneurs in their 20s and 30s and ambitious managers

at major corporations who aim to fulfill their potential through the creation of spinoff

ventures. Despite recent concern over the falling level of new business creation in Japan,

these trends are intensifying and the infrastructure necessary to support entrepreneurs is

strengthening year-by-year. This includes the emergence of a legal framework to encourage

business creation, closer industry/ government/ academia ties, and an expanding M&A

market.



With JAFCO’s large-scale funds ensuring access to sufficient investment capital and current

investment valuations at multi-year lows, we have a golden opportunity to leverage our

position through bold, carefully-selected investments.



Under our business philosophy of “value creation through private equity”, we aim to provide

continuous backing for those companies which have the potential to shape our society in the

21st century. This is our fundamental mission.



I look forward to your ongoing support.



January 2010




Shinichi Fuki, President & CEO

JAFCO Co., Ltd.