Financial Results Overview
for the 2nd Quarter Ended
September 30, 2020
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: November 13, 2020

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 prior notice. 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 JAIC.
The figures in this document are based on consolidated financial statements prepared in accordance with the previous accounting standards.

https://www.jaic-vc.co.jp-1-

Contents

1 SummaryP3

2 Results for 2Q of FY2021

P4

3 Result forecasts for FY2021

P9

4 Business report and action plan

P12

5 Appendix

P23

Note: The figures in this document are based on consolidated financial statements
prepared in accordance with the previous accounting standards.
https://www.jaic-vc.co.jp-2-

1. Summary

Results for 2Q of FY2021• Operating revenue of ¥541 million (down, 21.7% year on year) and deficit of ¥336 million (decreased about ¥0.15
billion year on year).
• While the size of share sales was smaller, the profit margin of share sales improved. Decrement of valuation loss
and allowances also contributed to reducing the deficit.



Result forecasts for FY2021• No changes in forecasts. Source of revenues has been revised from sales of shares to sales of projects.
• Some of IPOs expected in the second half of the year will be postponed, and the gain on sales of shares will beless than anticipated on a full-year basis.
• There is a plan to sell 7 mega solar projects amounting to 18.3MW (including partial sales).
• COVID-19’s impact on the JAIC Group continues to be expected to limited.

Business report & action plan
• Project oriented investment: Growth of each business has contributed to SDGs.
– Renewable energy: A food recycling business that generates biogas has commenced operations.
– Smart agriculture: Sales through the vegetable plant (lettuce) expanded.
– Healthcare: 2 group homes for handicapped people have commenced operations.
• Private equity investment: Alliance with regional financial institutions and network in Asia expanded.
– Globalization support fund for SMEs in Hokkai-do was newly established. A regional financial institution
joined the Fund as a fund investor.
– JAIC concluded a business cooperation agreement with Maritime Bank that has 280 branches throughout
Vietnam.

https://www.jaic-vc.co.jp-3-

2. Results for 2Q FY2021

Outline of results

P5

Break down of operating revenue & operating cost

P8

https://www.jaic-vc.co.jp-4-

2. Results for 2Q FY2021 - Outline of results - I/S(million yen)

FY 2020 (2Q)
AmountFY 2021 (2Q)
AmountChangeOperating revenue691

541 (21.7%)

Operating cost582

313 (46.2%)

Operating gross profit

108

227 109.1%

SG&A expenses

530

544

2.6%

Operating income

(421)

(316)

-

Ordinary income

(483)

(335)

-

(481)

(336)

-

Profit attributable to ownersof parentFactors for decrease in revenue:• In the second quarter of the previous fiscal year, we sold a large amount of unlisted shares with priority given
to liquidity despite a loss on sales.
• In the second quarter of the current fiscal year, we focused on the sales of listed shares, and the amount ofsales of unlisted shares was smaller.
Factors for deficit reduction:• The gain on sales of shares increased as a result of the sales of listed shares with higher profitability.
• As a result of the reversal of allowances for the investee companies for which improvement of businessperformance and an increase in investment recovery is expected, valuation loss and allowances decreased.

https://www.jaic-vc.co.jp-5-2. Results for 2Q FY2021 - Outline of results - B/S
As of Mar 2020

Total assets(a) Cash and deposits(b) Project oriented investment securities &loans
Strategic investment securities in partnercompanies
Private equity investment securities after deducting

FY 2021 (2Q)

AmountAmount(million yen)(million yen)

15,80014,580fluctuation factors

Change(billion yen)

(7.7%)
repayments of loan (0.7), execution

3,920

3,515 (10.3%) of investments & loans (0.7),

5,437

4,915

(9.6%) 0.5, distribution & collection (1)

1,005

1,155

14.9% execution of investments 0.15

expenses etc.(0.45), collection 1.4
execution of investments & loans

distribution & collection (0.2),

4,282

3,926

(8.3%) realized & unlrearized loss from funds（c） Loans payable

8,166

7,469

(8.5%) repayments of loan (0.7)

Total shareholders' equity

7,223

6,732

(6.8%) unrealized gain (0.15)(a) + (b) - （c）

1,191

allowance for possible investment loss except
strategic investment in partner companies(0.25)

loss for 2Q (0.33)

961 (19.3%)

 Cash and deposits :The balance decreased due to the repayment of borrowings and execution of investments & loans
 Project oriented investment: The balance decreased due to distribution and collection of investments
 Financial balance(*) : Although the balance decreased, a certain level was secured.
(*Note: Financial balance = Cash & deposits + project oriented investment – loans payable)
https://www.jaic-vc.co.jp-6-

2. Results for 2Q FY2021 - Outline of results - C/F(JPY million)

FY 2020 (2Q)

FY 2021 (2Q)

Operating CF

(870)

326

Investing CF

56

(13)

Financing CF(1,095)(697)

Change in Net CF(1,920)

(396)

2,161

2,326

Cash & cash equivalents at endof period Operating CF: Net cash provided was 326 million yen
Operating CF returned to the black as a result of the progress in investment recovery.
 Investing CF: Net cash used was 13 million yen
There were expenditures related to the acquisition of property, plant and equipment in line with therelocation of the head office.
 Financing CF: Net cash used was 697 million yen
The extent of negative cash flow improved year on year due to the reduction of the repayment amount
While new investment funds and ordinary payments have been covered by the collection on investment,
cash on-hand has been used for the repayment of borrowings.
https://www.jaic-vc.co.jp-7-

2. Results for 2Q FY2021 - Break down of operating revenue & operating cost
Total
（JPY million）

Private equity investment

Project oriented investment

FY 2020(2Q)

FY 2021(2Q)

FY 2020(2Q)

FY 2021(2Q)

FY 2020(2Q)

FY 2021(2Q)

691

541

586

402

104

139

Fund management fees etc.

107

82

106

79

1

3

Proceeds of sales of securities

406

232

406

232

0

0

Fund interests income etc.

155

198

66

85

89

113

Other operating reveue

20

26

7

4

13

22

582

313

531

239

50

74

356

85

356

85

0

0

160

(62)

160

(62)

-

-

Fund interests losses etc.

61

285

11

213

50

72

Other operating costs

2

3

2

2

-

1

108

227

54

162

54

64

Operating revenue

Operating cost
Cost of securities soldInvestment write-offs and Provision forallowance for possible investment losses

Operating gross profitPrivate equity investment - Decrease in revenues and increase in operating gross profit.
•
Of operating revenue, proceeds of sales of securities decreased due to the smaller size of unlisted share sales.
•
Of operating cost, cost of securities sold decreased due to the sales of listed shares with high profitability.
•
Of operating cost, investment write-offs and provision for allowance for possible investment losses decreased
due to the reversal of allowances for the investee companies for which improvement of business performanceand an increase in investment recovery is expected.

Project oriented investment - Increase in revenues and increase in operating gross profit.
•
Of operating revenues, fund interests income etc. increased due to profits from mega solar projects.
•
Of operating cost, fund interests losses etc. increased due to advance expenditure for the vegetable plant.

https://www.jaic-vc.co.jp-8-

3. Result forecasts for FY2021

Breakdown of result forecast

P10

Cautionary statements

P11

https://www.jaic-vc.co.jp-9-

3. Result forecasts for FY2021- Breakdown of result forecast(million yen)

Actual
FY 2021 (2Q)
AmountFY2021 2Q

FY. 2021(Revised in Aug. 2020)(No revision)

Amountachievement
rate

AmountProgression
ratio

541

670

80.8%

3,250

16.7%

Operating cost

313

490

63.9%

1,800

17.4%

Operating gross profit

227

180

126.6%

1,450

15.7%

SG&A expenses

544

570

95.5%

1,100

49.5%

Operating income

(316)

(390)

-

350

-

Ordinary income

(335)

(420)

-

200

-

(336)

(440)

-

180

-

owners of parentResult forcast

Operating revenue

Profit attributable to

Result forcast

Achievement rate of result forecast for the first half of the current fiscal year:
80.8% for operating revenue and reduction in final loss of approximately 100 million yen

・Operating revenue: Lower than the revised forecast due to the delay in sales of shares as the stock prices of listed shares remained at
the level below our expectation.
・Loss: Decreased as a result of the reversal of allowance for possible investment losses.

Full-year forecasts: No change

・Some of IPOs expected in the second half of the year will be postponed, and the gain on sales of shares will be less than anticipatedon a full-year basis.
・The gain on the sale of private equity investments in the second half is expected to be centered on the sale of large overseas unlisted shares.
・There is a plan to sell 7 mega solar projects amounting to 18.3 MW (including partial sales).
・Deficit is expected until the third quarter.

https://www.jaic-vc.co.jp- 10 -

3. Result forecasts for FY2021- Cautionary statements

 The private equity investment business conducted by the Groupwill be significantly affected by changing factors such as stock
markets, given the characteristics of the business. In addition, it
has been difficult to forecast results reasonably in the rapidlychanging environment.
 For the convenience of investors and shareholders, however, we
disclose “result forecast consolidated under the Previous
Accounting Standard” even though it doesnʼt have enoughrationality.
 The “result forecast consolidated under the Previous AccountingStandard” and any other forward-looking statements in thisdocument are based upon the information currently available to
JAIC and certain assumptions. The achievement is notpromised. Various factors could cause actual results to differ
materially from these result forecasts.
https://www.jaic-vc.co.jp- 11 -

4. Business report & action plan

Project oriented investment

P13

Private equity investment

P21

https://www.jaic-vc.co.jp- 12 -

4. Business report & action plan – Project oriented investment
Renewable energy
・4 mega-solar projects of total 5.0 MW has commenced electricity
sales
・Food recycle business that generates biogas commenced theoperations.

Smart agriculture
Sales of lettuce grown at the vegetable plant expanded as we
successfully developed a sales channel to leading convenience
stores and captured demand for home meal replacement which grew
amid the COVID-19 pandemic.

Healthcare
2 group homes for the handicapped have commenced the operations.

Distribution center
The main investors that will contribute most of development funds forthe project and the financial institutions that will provide loans for the
project have been determined.
https://www.jaic-vc.co.jp- 13 -

4. Business report & action plan – Project oriented investment– Mega-solar projects started electricity sales
Akkeshi Luke Supor Solar Power Plant

Location

Hokkai-do Akkeshi-gun

Maximum output

2.3MW (*1)

Expected annual power
generation

2,574MWh (*2)

Start of electricity sales

May 2020

Feed-in tariff¥40/kWh (ex. tax)

*1:Solar cell panel system capacity basis (the same applies below)*2:Equivalent to annual power consumption of approx. 530 average
households(converted at 4,825kWh per annum based on the Photovoltaic Power
Generation Association “Disclosure Guidelines (FY2019)“, the same
applies below)

Fukuoka Prefecture, Ukiha City, Solar Sharing（Farm-type solar power plant）

Map provided ”Craft MAP”

Name of solar powerplant

Ukiha-shi, Shirakabe Solar
Power Plant
Ukiha-shi, Mizunosato Solar
Power Plant
Ukiha-shi, Minou Alps Solar
Power Plant

Maximum output

3.0MW in total

Expected annual power
generation

3,341MWh (*) in total

Start of electricity sales

from Mar. to May 2020

Feed-in tariff¥36/kWh (ex. tax)

*Equivalent to annual power consumption of approx. 690
average households

Moss Yamagata, farmer of this farm-typesolar power plant, cultivates moss as
greening material under the solar panels.
https://www.jaic-vc.co.jp- 14 -

4. Business report & action plan – Project oriented investment – Food recycle business

Food recycle business that generates biogas- Recycle food waste to produce renewable energy Food
waste

Power generation using
renewable energy

Recycling of
waste

Waste
after
volumereduction

Disposal
cost

Hamura Biogas Power Plant

Reduction ofwaste volume
by 80%

Supply of biogas, plant operations

Final disposal
business operator

Disposalcost

Nishi Tokyo Recycle Center

Food related business
operators(Food manufacturers, etc.)

Food
waste

Generationof biogas

Panoramic view of Hamura Biogas Power Plant• Nishi Tokyo Recycling Center Co., Ltd. (“NRC”), in which JAIC invests, engages in the food recycle business to recycle food waste toproduce renewable energy.
• The company receives food waste from food manufacturers and other food related business operators for compensation, reduces
the volume of food waste by about 80% by methane fermentation, and generates biogas (methane gas) in the process.
• Generated biogas is used at Hamura Biogas Power Plant as renewable energy.
• The construction of Hamura Biogas Power Plant was completed in July 2020, and NRC obtained a license for industrial waste
disposal and commenced operations in August.
https://www.jaic-vc.co.jp- 15 -

4. Business report & action plan – Project oriented investment – Food recycle business

Food waste that can be accepted

Waste suitable for recycling

Residues during the manufacturing process, expired and recovered products, scraps of foodstuffs, vegetables that havelost their freshness, and inventory disposal*Food waste in plastic containers, packaged food as well as that covered with plastic wrap, etc. can be accepted.

Food waste in packs and that with packaging
materials

Waste that require special treatment

Foods with extremely low water content, oily foods, and foods with a salt concentration of 0.35% or higher

Frozen food(Defrosted food is
acceptable)

Powdery food

Food in glass
containers

Canned food

Food packed in
cardboard boxes

Waste not suitable for recycling

Waste that contains many
foreign objects

・Tableware, knives, forks, magazines, newspapers, wastepaper
・Empty bottles, cans, plastic bottles
・Clothing, bags, shoes, large bones, a lot of shells, a lot of shrimp and crab shells, a lot of egg shells
・Mineral waste oil, ornamental plants, flowers, trees, leaves*If food waste is mixed with garbage and cannot be separated, it can be accepted as is.
https://www.jaic-vc.co.jp- 16 -

4. Business report & action plan – Project oriented investment – Healthcare

2 group homes for the handicapped started the operation.

Outline of the group home
Outline of the group home
Name
Address
Date of starting theoperation
No. of rooms
Type
Operator

Social Inclu Home Hamamatsu Kmidamachi
Hamamatsu City, Shizuoka prefecture
Aug. 1, 2020
20 for residents, 2 for short-stayDaytime service support typeSocial Inclu CO., LTD.

Constructed by Kobayashi Kensetsu that has a track record inbuilding welfare and other facilities in this region.

Name

Social Inclu Home Hiroshima Karugacho

Address
Date of starting theoperation
No. of rooms
Type
Operator

Hiroshima City, Hiroshima prefecture
Aug. 1, 2020
20 for residents, 2 for short-stayDaytime service support typeSocial Inclu CO., LTD.

・Kure Shinkin Bank provided loans for this project.
・Constructed by Shigenari Kosan that has a track record inbuilding a number of group homes in this region.

(Note) Group home;
In group homes, about 10 to 20 people with physical, intellectual, and mental disabilities live together with the support of the caretakers stationed 24 hours a day. Since
the facility is smaller than the existing facilities for persons with disability, it is possible to provide support that meets the needs of each resident. The benefits of moving
into group homes include prevention of isolation, reduction of anxiety about life, and stabilization of physical and mental conditions through communal living.
https://www.jaic-vc.co.jp- 17 -

4. Business report & action plan – Project oriented investment – Distribution center

Developing 2 facilities with KIC Holdings, JAIC’s partner company
KIC Koshigaya Distribution Center

Rendering

KIC Atsugi Distribution Center

Rendering

Location

Koshigaya-shi, Saitama

Location

Atugi-shi, Kanagawa

Accessabout 6㎞ from TOHOKU
Expressway Urawa IC, about 1㎞ from TOBU SKYTREE Line
Oobukuro station

Accessabout 1.46km fro KEN-O
Expressway KEN-O Atsugi IC,
about 1.8㎞ from JR Sagami
Line Ebina station

Total floor
space

11,250㎡, 4 floors above
groundTotal floor
space

10,890㎡ (scheduled), 2 floors
above ground

Completion

Oct. 2021 (scheduled)Completion

Feb. 2022 (scheduled)https://www.jaic-vc.co.jp- 18 -

4. Business report & action plan – Project oriented investment – Action plan for 2nd half
Renewable energy
・Stabilize the supply of biogas and operate Hamura Biogas Power Plant.
・Sell 7 mega solar projects (18.3MW) for which electricity is being sold.

Smart agriculture
・Make Sasayama Plant (lettuce) profitable and work on the development of the second
plant.
・Develop potential customers of strawberries grown at a plant operated by MD-Farm,which is JAIC’s strategic investment target.

Healthcare
・Newly develop 2 group homes for handicapped people.
・Cooperate with financial institutions to consider methods for expanding the scale ofprojects of group homes for handicapped people.
・Execute investment in 1 aged-care facility.

Distribution center・Develop potential users and buyers of the facilities that JAIC has invested in.
・Proceed the development of new facilities and make investment amounting to 1.2 billion
yen in total.
https://www.jaic-vc.co.jp- 19 -

4. Business report & action plan – Action plan for 2nd half – Strawberry plant

Cultivation of strawberries at a plant operated by MD-FarmMarket size of strawberries grown in Japan・Among major vegetables and fruits grown in Japan, strawberries have thehighest wholesale unit price and the largest total wholesale value.
・The supply of strawberries grown outdoor is limited to a half year period between
late November and early May.
・There is significant potential demand if strawberries can be supplied during theoff season.

Technological innovation
・Succeeded in growing strawberries steadily throughout the year at a closedspace vegetable plant using proprietary technologies.
・It is possible to grow strawberries with stable taste and size throughout the year.

Characteristics of the products
・Strawberries with stable freshness can be supplied during summer and autumn
as well as the Christmas season.
・They can be eaten without washing as they are produced in Japan andcompletely pesticide-free.
・They are aromatic and have a sugar content of 14 degrees (adjustable).

https://www.jaic-vc.co.jp

Outline of the company
Name
Address
Business
Representative
Established
Paid-in capital
URL

MD-Farm
Shibata City, Niigata Prefecture
Developing, manufacturing and selling
strawberry plant system
President & CEO Yuki Matsuda
Mar. 26, 2018
¥ 53 million
https://www.md.farm/- 20 -

4. Business report & action plan – Private equity investment

Hokkaido SME Global Fund, L.P.
～Globalization Support Fund for Regional SMEs～
General Partner

Japan Asia Investment Co., Ltd. (JAIC), Asian Market Planning Co.,
Ltd. (AMP, one of partner companies of JAIC)

Limited Partner

Regional financial institution

Total commitment amount

151million yen

Investment target

SMEs located or with business bases in Hokkaido that operate or aim
to operate in oversea market and that promote business to meetinbound demand

Date of establishment

April 1, 2020

https://www.jaic-vc.co.jp- 21 -

4. Business report & action plan – Private equity investment

Conclusion of a cooperative agreement with Vietnam Maritime Commercial Joint
Stock Bank, a commercial bank that has 280 branches throughout Vietnam
Business Network in Asia
Tianjin [LP of investment fund]
Tianjin Eco-City Investment and Development Co.,Ltd.
Tianjin [100% subsidiary]
Yantai [alliance partner]
・ Government of Yantai City・ Yantai Investment Development Board
Qingdao/Shandong Peninsula indigo special
economic zone [alliance partner]
・ Investment fund of indigo special economic zone
・ Government of Qingdao City

Beijing [advisor]

Shenyang [LP of investment fund]
Government of Sheyang Hunnan new
district
Shenyang [100% subsidiary]
Shanghai [Co-GP of investment
fund]

Xi’an [alliance partner]
Xi’an high-tech industry development zone
Xi’an [advisor]
Hanoi [alliance partner]
Vietnam Maritime Commercial Joint Stock Bank
Bangkok [alliance partner]
・ VNET Venture Capital Management
Securities Co., Ltd.
・ KT Zmico Securities Company Limited
Singapore/Malaysia/Indonesia[cooperative relationship]
・ BA Partners Pte. Ltd.
・ Lingua Franca Holdings Pte. Ltd.

https://www.jaic-vc.co.jp

Going forward, we will provide Japanese andother Asian companies with banking services andother capital tie-up opportunities in connection
with cross-border businesses and M&A needs
involving Vietnamese companies.

CyberAgent Capital, Inc.
Shanghai [100% subsidiary]

Qingdao [cooperative relationship]
Qingdao Center For Business & Commerce, Japan

JAIC has concluded a cooperative agreementwith Vietnam Maritime Commercial Joint Stock
Bank and Asian Market Planning.

Suzhou [LP of investment fund]

Outline of the company

Suzhou investment group

Head Office

54A Nguyen Chi Thanh Street, Lang
Thuong Ward, Dong Da District, Ha
Noi, Vietnam

Representative

Chairman, Mr. Tran Anh Tuan

Established1991 year

Total asset

VND 144 trillion

URL

https://www.msb.com.vn/

Suzhou [100% subsidiary]
Wuhan [alliance partner]
Wuhan Municipal People's Government
Hong Kong[shareholder & alliance partner]
First Eastern (Holdings) Limited

Ho Chi Minh City [cooperative
relationship]
World Link Japan, Inc.

- 22 -

5. Appendix

Renewable energy projects

P24

List of project oriented investments

P25

Break down of private equity investment balance

P27

AUM of Funds, Investment balance & balance of operational
investment securities

P28

Funds & investment activities

P29

Business results & financial position

P30

Break down of operating revenue & operating cost

P31

Business field

P32

Core competence

P33

Profit structure

P34

Company data

P36

https://www.jaic-vc.co.jp- 23 -

5. Appendix - Renewable energy projects as of September 30, 2020

Mega solar projects
Started electricity sales 16 projects (18 power plants)
Under construction or under planning
6 projects
Total
22 projects (24 power plants)
attributable to JAIC

53.2 MW32.6 MW85.8 MW38.2 MWTransfers to buyers other than the funds operated by the JAIC Group

24 projects

133.8 MW

*Underlined projects are invested from
JAIC Solar Fund L.P., Ⅱ

Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
1 project 2.4MW
2 projects 5.3MW
Miyagi, Solar,
1 project 2.4MW

Fukuoka, Solar
1 project, 3
power plants
3.0MW in total

Kumamoto, Solar
1 project 3.1MW

Hokkaido, Solar,
4 projects 24.4MW

Fukushima, Solar,
2 projects 3.9MW
1 project 2.4MW
Tokyo, Bio gas,
1project 1.6MW
Kagawa, Solar Mie,
4 projects 8.7MW Woody biomass, 1 project 2.0MW
Mega solar,
1 project 21.8MW
Wind power,
1 project at most 25.2MW

Tochigi, Solar,
3 projects 6.0MW
Kanagawa, Solar,
1 project 2.4MW* Since our investment ratio differs in each project, the amount of JAIC’s investment or revenues from mega solar projects that are attributable to JAIC are notnecessarily linked to the MW figure of the project.
https://www.jaic-vc.co.jp- 24 -

5. Appendix - List of project oriented investments (as of September 2020)
Type ofproject
Solar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]Total amount ofproject [¥ bn.]1

Nishiki-cho, Kuma-gun, Kumamoto(*)

3.1

Started electricity sales in Dec. 201540

approx. 1.05

2

Nomaike solar power plant(*)

2.4

Started electricity sales in May. 201736

approx. 0.8

3

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

4Mitakabeike solar power plant(*)

1.5

Started electricity sales in Sep. 201732

approx. 0.5

5Iwate Ichinoseki solar park(*)

2.4

Started electricity sales in Jan. 201836

approx. 0.8

6

Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

7

Nakaoudaike solar power plant(*)

2.4

Started electricity sales in Apr. 201836

approx. 0.86

8

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

9

Higashioudaike solar power plant(*)

2.4

Started electricity sales in Jul. 201836

approx. 0.86

10

Ichinosekishi Suzugasawa solar power plant

2.7

Started electricity sales in Oct.. 2018

36

－

11

Kami solar park

2.4

Started electricity sales in Oct. 201836

approx. 0.96

12

Mombetsu-shi Kodo solar power plant

15.7

Started electricity sales in Feb. 202040

approx. 6.6

13

Yokotsunooka solar power plant

2.0

Started electricity sales in Mar. 2020

36

－

14

Mie

21.8

Under construction or Under planning

24

－

15

Fukushima

2.4

Under construction or Under planning

32

－

16

Hirono solar park

2.7

Started electricity sales in Feb. 2020

40

－

17

Akkeshi Luke Supor Solar Power Plant

2.3

Started electricity sales in May 2020

40

－

18

Kanagawa

2.4

Under construction or Under planning

32

－

19

Ukiha-shi, Shirakabe Solar Power Plant
Ukiha-shi, Mizunosato Solar Power Plant
Ukiha-shi, Minou Alps Solar Power Plant

Started electricity sales in Mar.-May 2020

36

－

20

Tochigi

2.0

Under construction or Under planning

36

－

21

Tochigi

2.0

Under construction or Under planning

32

－

22

Tochigi

2.0

Under construction or Under planning32－

3.0 in total

Total 85.8MW [attributable to JAIC 38.2MW]

https://www.jaic-vc.co.jp- 25 -

5. Appendix - List of project oriented investments (as of September 2020)
Type of project

No.

Woody biomass
Bio gas1

2

Location

Generation Capacity[MW]

Current status

FIT[tax excluded, ¥]Total amount of project [¥bn.]Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018

－

－

Tokyo

1.6

Preparing to start operation

39－

Food recycle company that generates
biogas for power generation

－

－

0.03

Started electricity sales in Nov. 201839－

At most 25.2

Under construction or Under planning

22－

Aomori Touhokumachi solar power plant

Wind power

Mie

Vegetable plant

Tambasasayama-shi, Hyogo－

Started operation in Mar. 2019－

Approx. 0.7

1

Hamamatsu-shi, Shizuoka－

Started operation in Aug. 2020

－

－

2

Utsunomiya-shi, Tochigi－

Under construction or Under planning

－

－

3

Hiroshima-shi, Hiroshima－

Started operation in Aug. 2020

－

－

Aichi

－

Opened*investment in building which has alreadystarted operation

－

－

1

Koshigaya-shi, Saitama－

Under construction or Under planning

－

－

2

Atsugi-shi, Kanagawa－

Under construction or Under planning－－Group home

Commercial
building
Logistics
warehouse*Projects that are invested from JAIC Solar Fund L.P., Ⅱ

https://www.jaic-vc.co.jp- 26 -

5. Appendix - Break down of private equity investment balance

Investment balance : 95 companies, ¥8.4 bn.
【Breakdown by area】

China,HK,
Taiwan&others ;44co.

【Breakdown by industry】
Others;12co.
Service; 1.6bn.
Japan;
13co.
Total
51co.

【Breakdown of QOL】

QOL;
24co.

3.3bn.

Total
1.0bn.
95 companies
95 companies
3.9bn. Precision
4.5bn. ¥8.4bn.
¥8.4 bn.
machine;6co.

0.7bn.

1.8bn.IT;
40co.

Average investment amount per company (unit: ¥ million):
Japan 76, China,HK&Taiwan etc. 102 / QOL 136, IT 44
https://www.jaic-vc.co.jp- 27 -

5. Appendix - AUM of Funds, Investment balance & balance of operational
investment securities

Investment by fuds
5.6

AUM of funds¥16.5 bn.

7.3

3.2

0.4

Investment balance¥14.4 bn.

Principal investment
by JAIC 8.8

1.6

Other
investors'
interests in
funds
4.0
Other than consolidated projects & PE investments
Consolidated projects

Balance of
operational investment securities(previous accounting standard)

6.6

2.2
※

1.6 0.4¥10.8 bn.
Balance of
operational investment securities(fund consolidated
accounting standard)¥9.8 bn.

https://www.jaic-vc.co.jp

JAIC's interests in funds
OthersCash etc. in Funds
Accumulated profits, losses & distributions

6.6

1.6 1.10.5

Uncalled commitments to Funds
Note:
Of the principal investment by JAIC, the investment portion in aconsolidated project is deemed investment in a subsidiary under
the fund consolidated accounting standards, and the investment isoffset.
On the other hand, renewable energy power generation andvegetable plant facilities held by consolidated projects are booked
as property, plant and equipment under the fund consolidated
accounting standard.

- 28 -

5. Appendix - Funds & investment activities(JPY million)

16/3

17/3

18/3

19/3

20/3

20/3(2Q)

21/3(2Q)

New & increased funds

5,201

500

1,000

2,000

1,359

-

151

AUM of funds - total

39,33528,753

19,15016,494

17,39015,94816,556

AUM of funds - JAIC

14,004

9,427

5,867

5,344

5,163

5,131

4,928

New investnemts (Total)

4,093

4,315

3,887

3,749

3,374

1,745

533

Balance of investments (Total)

18,783

16,55813,981

13,951

15,101

14,67814,376

New investnemts (private equity)

1,304

1,131

1,205

136

1,224

824

158

Balance of investments (private Equity)

15,061

11,981

10,398

8,437

8,405

8,260

8,375

New investnemts (project oriented investment)

2,788

3,184

2,681

3,612

2,150

920

374

Balance of investments (project oriented investment)

3,722

4,576

3,582

5,514

6,696

6,418

6,000

https://www.jaic-vc.co.jp- 29 -

5. Appendix - Business results, financial position (Previous accounting standards)(JPY million)

16/3

17/3

18/3

19/3

20/3

20/3(2Q)

21/3(2Q)

Business results
Operating revenues

4,043

3,926

5,403

2,475

2,760

691

541

Operating gross profit

1,554

2,176

2,328

1,286

1,359

108

227

SG&A expenses

1,472

1,339

1,311

1,109

1,094

530

544

Operating income

82

836

1,017

177

265

(421)

(316)

Ordinary income

612

726

954

83

140

(483)

(335)

Net income

597

553

874

578

302

(481)

(336)

8,202

6,213

7,308

5,564

3,920

2,825

3,515

3,722

4,081

3,582

5,514

5,437

6,667

4,915

100

100

373

373

1,005

745

1,155

8,126

7,256

5,657

4,765

4,282

4,577

3,926

16,91014,128

11,954

9,784

8,166

8,689

7,469

Total shareholders' equity

4,976

5,686

6,545

6,840

7,223

6,507

6,732

Total assets

22,68020,305

19,22017,30515,80015,761

14,580Financial position
Cash and deposits
Operational investment securities and operatingloans of project oriented investment
Operational investment securities of strategic
investment in partner companies
Operational investment securities after
deducting allowance for possible investment loss
(Private equity except strategic investment in
partner companies)
Loans payable, bonds & bonds with subscription
rights to shares

https://www.jaic-vc.co.jp- 30 -

5. Appendix - Statement of Income - break down (Previous accounting standard)(JPY:million)

16/3

17/3

18/3

19/3

20/3

20/3(2Q)

21/3(2Q) Change(%)

１． Fund management operation
Fund management fees and others

441

364

277

241

199

107

82

(23.1%)

Success Fees

288

101

86

-

-

-

-

-

Operating revenue

729

466

364

241

199

107

82

(23.1%)

-

-

-

-

-

-

-

-

729

466

364

241

199

107

82

(23.1%)

2,954

2,275

3,219

1,746

2,349

406

232

(42.8%)

345

1,159

1,677

429

172

155

198

27.4%

3,300

3,434

4,897

2,176

2,521

562

431

(23.3%)

1,863

1,423

2,469

554

965

356

85

(75.9%)

569

274

562

579

245

160

(62)

-

47

46

36

49

184

61

285

361.8%

2,481

1,744

3,069

1,182

1,395

579

309

(46.6%)

818

1,690

1,827

993

1,125

(16)

122

-

Operating revenue

13

25

142

57

40

20

26

29.5%

Operating cost

7

6

5

6

5

2

3

44.1%

Operating gross profit

5

19

136

51

34

18

23

27.5%

Operating revenues

4,043

3,926

5,403

2,475

2,760

691

541

(21.7%)

Operating cost

2,488

1,750

3,074

1,188

1,401

582

313

(46.2%)

Operating gross profit

1,554

2,176

2,328

1,286

1,359

108

227

109.1%

Operating cost
Operating gross profit
２． Investment operation
Proceeds of sales of securities (A)Fund interests income etc.
Operating revenue
Cost of securities sold (B)Investment write-oﬀs and Provision for allowancefor possible investment losses ( C)Fund interests losses etc.
Operating cost
Operating gross profit
３． Others

Total

https://www.jaic-vc.co.jp- 31 -

5. Appendix - Business field

Private equity investment

Strategic investment

Project investment

JAIC provides growth capital in venturecompanies and small and medium sizedenterprise (“SME”) with high growth potential,
as well as to SMEs with succession problem.
After the investment, JAIC is committed toprovide various support to achieve growthstrategies of the company by utilizing
JAIC’s resources in Japan and elsewhere in
Asia.

Strategic investment in partnercompanies that correspond toselected themes of JAIC.
JAIC provides “hands-on” support topartner companies to improve its
business promotion and financing
activities, etc.

JAIC has been investing to renewable energy
industries represented by solar energy as well as tohealthcare industry such as nursing facilities andfacilities for persons with disabilities. In addition to
above, JAIC
is determined to invest to new areas such as smartagri business represented by vegetable plant andlogistic industry such as distribution center where
JAIC’s accumulated expertise can be leveraged.

https://www.jaic-vc.co.jp- 32 -

5. Appendix - Core competence
Historical background in Asian
regionCapability to capture up-to-datebusiness information
Through the activity of exploringpromising companies and investment
opportunities, JAIC has capability tocapture highly professional and cuttingedge information on various corporates.

Since its establishment in 1981 by the Japan
Association of Corporate Executives (Keizai
Doyukai), JAIC has contributed to economic
exchange between Japan and Asian
countries over 35 years which led to highname recognition.

Expertise to structure sophisticatedfinance scheme
Wide range of network with venture companies
JAIC has track record of leading more than 300 invested venturecompanies to “Going Public”. Through the long time investment
activities, JAIC enjoys close relationship with wide range ofventure companies. Based on this intangible asset, JAIC is
utilizing the network to create value for invested companies
through business matching and cultivating new business theme
for JAIC’s own.
https://www.jaic-vc.co.jp

JAIC’s accumulated invested volume insideand outside of Japan is Japanese Yen 330
billion.
For the project oriented investment, in
addition to providing direct equity investment,
JAIC has been arranging various financing
scheme utilizing project-finance approachand leverage financing together with financial
institutions.
- 33 -

5. Appendix - Profit structure● Private equity investment

There are the following two types of investment
capital:・Contribution from JAIC’s cash reserves
・Capital that is entrusted for investment byfund investors in Japan and abroad throughthe fundJAIC also invests in the fund and acquires
capital gains according to its investment ratio.

● Renewable energy project investment

The power generation operator procures funds
for the construction of power plants by thefollowing two ways and owns the power plants:
・Investment by JAIC and other investors
・Loans from financial institutions
The generated power is purchased by powercompanies at FIT.
JAIC and other investors obtain stable revenue
from electricity sales according to theirinvestment ratios.

https://www.jaic-vc.co.jp- 34 -

5. Appendix - Profit structure● Fund management
In fund management, there are thefollowing two types of fees:
・Management fee received ascompensation for recurring
management and operation
・Success fees received according to thefund’s performancehttps://www.jaic-vc.co.jp- 35 -

5. Appendix - Company data (as of September 30, 2020)
Company name

Japan Asia Investment Co., Ltd.

Head office

2F Medical Friend Building, 3-2-4 Kudn-kita, Chiyoda-ku, Tokyo 1020073, Japan

Established

July 10, 1981

Paid-in capital

5,426 million yen

Listed market

Tokyo Stock Exchange, 1st Section (Securities code 8518)

Employees

37 (Consolidated) /21 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

Chairman of the Board :Yoshiaki Kawamata [Outside/Independent]
President & CEO:Tetsuro Shimomura
Managing Executive Officer in charge of Investment Group:Masafumi Hatta
Chairman of Audit & Supervisory Committee:Kazunori Omori
Member of Audit & Supervisory Committee:Hitoshi Yasukawa [Outside/Independent]:Tadashi Nunami[Outside/Independent]:Harumi Katagiri[Outside/Independent]

https://www.jaic-vc.co.jp

Abbreviation; JAIC

- 36 -

JAIC
Japan Asia Investment Co., Ltd.
https://www.jaic-vc.co.jp/
Contact to:
Kenji Kishimoto, Executive Officer
Miyuki Maruyama, Administration GroupIR e-mail : ir@jaic-vc.co.jp

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 prior notice. 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 JAIC.
The figures in this document is based on consolidated financial statements.
https://www.jaic-vc.co.jp- 37 -