Japan Asia Investment Co., Ltd.
Fund Consolidation

This document has been translated from Japanese original for reference purposes only. In
the event of any discrepancy between this translated document and the Japanese original,
the original shall prevail. JAIC assumes no responsibility for this translation or for direct,
indirect or any other forms of damages arising from the translation.

Consolidated Financial Results
for the Third Quarter Ended December 31, 2019
[Japanese Standards](Summary of Japanese announcement)
February 14, 2020
Company name:

Japan Asia Investment Co., Ltd.

Listed on:First Section of the Tokyo Stock Exchange (Stock code: 8518)

Head office:Tokyo

Representative:

Tetsuro Shimomura, President and CEO

Contact:

Kenji Kishimoto, Executive Officer

URL: http://www.jaic-vc.co.jp/

Tel: +81-3-3259-8518 (main)
Scheduled date for submission of quarterly report: February 14, 2020
Scheduled date for start of payment of dividends: —The additional materials of the Financial Results: Yes
The briefing session of the Financial Results: None

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the third quarter ended December 31, 2019 (April 1, 2019 to December 31, 2019)(1) Consolidated results of operations (cumulative total)(Percentages indicate year-on-year increase or decrease)
Operating revenue

Operating income

Ordinary income

Millions of yen % change

Millions of yen % change

Millions of yen % change

Profit attributable toowners of parent
Millions of yen % change

For nine months ended
December 31, 2019

1,801

(6.6)

(391)

－

(614)

－

(710)

－

For nine months ended
December 31, 2018

1,928

(67.4)

(448)

－

(647)

－

(199)

－

(Note) Comprehensive Income
For nine months ended December 31, 2019: (80) millions of yen (－%)
For nine months ended December 31, 2018: (412) millions of yen (－%)

Yen

Diluted net income
per shareYen(40.14)－(11.25)－

Net income per share
For nine months ended
December 31, 2019
For nine months ended
December 31, 2018

(2) Consolidated financial position

As of December 31, 2019
As of March 31, 2019

Total assets

Net assets

Millions of yen
29,433

Millions of yen
8,316

Equity ratio

28,845

8,400(Reference) Total shareholders' equity As of December 31, 2019: 6,424 millions of yen
yen

1

Net assets per share
%

Yen

21.8

362.8723.6

383.89As of March 31, 2019: 6,796 millions ofJapan Asia Investment Co., Ltd.
Fund Consolidation

2. Dividends(Base date)Year ended March
31, 2019
Year ending March
31, 2020
Year ending March
31, 2020 (forecast)End of first quarter
Yen

End of second quarter
Yen

Dividends per share
End of third quarter
Yen

－

0.00

－

－

0.00

－

End of year
Yen

Year
Yen

0.00

0.00

0.00

0.00

(Note) Revision of dividends forecast during the current quarterly period: None
3. Outlook for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)
The private equity investment business conducted by the Group (including investment partnerships) is significantly affected bychanging factors such as stock markets, given the characteristics of the business. In addition, it has been difficult to forecast results
reasonably in the rapidly changing environment. Therefore we do not disclose the results forecast. For the convenience ofinvestors and shareholders, however, we disclose “result forecast consolidated under the Previous Accounting Standard” eventhough it doesn’t have enough rationality.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements in thisdocument are based upon the information currently available to JAIC at the time of writing and certain assumptions. The
achievement is not promised. Various factors could cause actual results to differ materially from these result forecasts.
For details, please refer to “2. Outlook for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)” on page 16.
4. Other matters(1) Changes among significant subsidiaries (Changes among specific subsidiaries resulting in changes in the scope of
consolidation): None
[New - company (company name: -)Excluded - company (company name: -)](2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting principles, accounting estimates and correction of prior period errors(i) Changes in accounting principles due to revisions to accounting standards: None(ii) Changes other than shown in (i) above: None(iii) Changes in accounting estimates: None(iv) Correction of prior period errors: None
(4) No. of shares issued and outstanding (common stock)(i) Shares issued and outstanding at Nine months ended
the end of each period (including December 31,
treasury stock)2019:(ii) Shares of treasury stock at theNine months
end of each period
ended December 31,2019:(ii) Average number of shares
Nine months ended
during the period (cumulative
December 31, 2019:
quarterly consolidated period)

17,884,392
shares181,009
shares17,703,383
sharesYear ended March
31, 2019:
Year ended
31, 2019:

17,884,392
sharesMarch

181,009
sharesNine months ended
December 31, 2018

17,703,383
shares*The above quarterly financial results are not subject to a quarterly review required under the Financial Instruments andExchange Act.
*Cautionary Statements with Respect to Forward-looking Statements and Other Notes
The additional materials of the Financial Results for the third quarter ended December 31, 2019 will be released on our
website by February 17, 2020.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements inthis document are based upon the information currently available to the Group at the time of writing and certain
assumptions. The achievement is not promised. Various factors could cause actual results to differ materially from theseresult forecasts. For details, please refer to “2. Outlook for the fiscal year ending March 31, 2020 (April 1, 2019 to March
31, 2020)”on page 16.

2

Japan Asia Investment Co., Ltd.
Fund Consolidation

1. Business Performance and Financial Condition(1) Breakdown of operating revenue and operating cost
(Millions of yen)
For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)
Total operating revenue (A)For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)

For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)

1,928

1,801

3,503

118

101

152

649

772

1,897

Fund interests income etc.

1,145

913

1,419

Other operating revenue

14

12

33

Total operating cost (C)

1,396

1,253

1,895

302

478

616

673

283

710

416

486

562

4

4

6

Operating gross profit (A) - (C)

531

548

1,608

Realized capital gains (B) - (D)

347

294

1,281

Investment income

(325)

10

570

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)

For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)

Management fees
Proceeds of sales of operational
investment securities (B)Cost of securities sold(D)

Investment write-offs & Provision
for allowance for possible
investment losses(E)

Fund interests losses etc.
Other operating cost(B) - (D) – (E)(2) Cash flows(Millions of yen)
For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)

Cash flow from operating activities

994

(950)

299

Cash flow from investing activities

703

64

1,224

Cash flow from financing activities(2,173)(1,617)(2,173)

4,265

1,557

4,082

Cash and cash equivalents at the endof period

3Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Operational Investment Securities and Allowance for Possible Investment Loss
(Millions of yen)
As of December 31, 2018
As of December 31, 2019
Amount(B)/(A) (%)
Amount(B)/(A)(%)

As of March 31, 2019
Amount(B)/(A)(%)

Operational Investment Securities
(A)

9,433

－

10,232－

10,242－

Allowance for Possible
Investment Loss (B)(1,519)16.1(1,624)15.9(1,538)15.0(4) Breakdown of Loans payable(Millions of yen）
As of December 31, 2018

As of December 31, 2019

As of March 31, 2019

Total of loans payable and bonds

20,806

20,325

19,552

Non-consolidated base loans
payable

9,784

8,166

9,784

Loans payable of SPC etc.
by project finance and bonds of
SPC etc.

11,021

12,1589,768

4

Japan Asia Investment Co., Ltd.
Fund Consolidation

2.Business Position(1) Investment activities (JAIC+Funds)i) Breakdown of new investment

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)
AmountNumber ofcompanies (Millions ofyen)or projects

For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)
Number ofAmountcompanies or (Millions ofyen)projects

For the year ended
March 31, 2019(from April 1, 2018 toMarch 31, 2019)
Number ofAmountcompanies (Millions ofor projects
yen)

Area
Japan
China, Hong Kong, Taiwan
Southeast Asia
Others

10

2,733

18

2,927

1

86

－

－

－

－

1

0

8

14

3,662

－

1

86

－

－

－

－

－

1

0

2,683

9

1,950

12

3,612

4

136

9

977

4

136

1

86

2

112

1

86

Industry
Project Oriented Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
Others
Total

1

0

1

77

1

0

－

－

2

370

－

－

2

50

2

56

2

50

－

－

2

361

－

－

12

2,819

18

2,927

16

3,749

ii) Balance of investment
As of December 31, 2018

As of December 31, 2019

As of March 31, 2019

Amount(Millions ofyen)

Number ofAmountcompanies or (Millions ofyen)projects

Number ofAmountcompanies (Millions ofor projects
yen)Number ofcompanies
or projects
Area
Japan
China, Hong Kong, Taiwan
Southeast Asia
Others

84

7,924

88

9,898

81

8,485

42

5,164

36

4,293

42

5,164

5

189

5

189

5

189

7

116

6

109

6

111

26

4,836

32

6,191

26

5,514

112

8,558

103

8,298

108

8,437

29

3,540

27

3,194

29

3,540

51

2,230

42

1,830

48

2,119

6

462

7

738

6

462

15

1,183

15

1,015

14

1,173

11

1,141

12

1,519

11

1,141

138

13,394135

14,490134

13,951

Industry
Project Oriented Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
OthersTotal

Note:
1. QOL (Quality of Life); Biotechnology, Medical Service, Welfare Service, Medical Device, Drug Medicine, etc.

5

Japan Asia Investment Co., Ltd.
Fund Consolidation(2)JAIC-Backed IPOs (JAIC+Funds)i)Number of IPOs

Japan
Overseas
Total

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)
1 company－
1 company

For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)2 companies
1 company
3 companies

For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)2 companies－
2 companiesii) First price multiple
For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)10.8 times

For nine months ended
For the year ended
December 31, 2019
March 31, 2019(from April 1, 2019(from April 1, 2018
to December 31, 2019)
to March 31, 2019)Japan
8.8 times
9.7 times
Overseas－
8.6 times－
Note: First price multiple = Gross market capitalization at first price/Total our acquisition cost. However, the calculationof the first price multiple does not include the number of companies whose listed shares the group acquired as aresult of equity swaps.
iii) JAIC-Backed IPOs
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Company
Date ofMarketName
IPO

VALUENEX Inc.

MINKABU THE
INFONOID,Inc.

30-Oct-18

19-Mar-19

TSE Mothers

TSE Mothers

Business

Providing ASP licensing services
for big data analytics of patents(TechRadar) and documents(DocRadar), and offering
consulting services utilizing thesetools and unique methodologies

Financial media business andinformational fintech solution
business, utilizing content generating
technology with its proprietary
artificial intelligence and crowd
inputsFor nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)
Company
Date ofMarketBusiness
Name
IPO
Research, development, manufactureand sales of pharmaceuticals andmedical devices that promote
regeneration of damaged tissues by
StemRIM
9-Aug-19
TSE Mothers
activating and utilizing patient’s own
stem cells in the body, and genetherapy products for intractablediseases'"Secure Cloud Systems Business"
which provides an enterprise's Core
Systems as cloud computing
PBsystems, Inc.
12-Sep-19
FSE Q-Board
systems, and "Emotional Systems
Business" which manufactures andsells VR-theater "4D king"
NASDAQ
Operator of "房多多", china's largest
Fangdd Network Group Ltd. 1-Nov-19
Globalonline real estate marketplace

6

Headquarters

Japan

Japan

Head
quarters

Japan

Japan

China

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Management of Investment Funds (Funds for which JAIC and its Group are responsible formanagement and provision of essential information)i) Balance of funds under management
As of December 31,
2018

As of December 31,
2019

As of March 31, 2019

Total commitment amount in investment
funds (Millions of yen)

18,062

16,094

16,494

Total commitment amount of JAIC group

5,377

5,191

5,344

10

10

No. of funds
11
Note: Funds being wound up after their maturity are not included in the data above.
ii) Funds newly established or those commitment amount increased

For nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen )No. of funds－－

amountincreased

2,000
1

For nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen)
No. of funds－－

amountincreased－－

For the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen)
No. of funds－－

amountincreased

2,0001iii) Details of funds newly established or those commitment amount increased
For nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)No applicable items
For the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Date of
Total commitment amountcommitment
Name of fundincreased
Main investment targets
amount(Millions of yen)increased
June &
Succession Investment
October
2,000
SMEs in Japan which has successor problem
Limited Partnership, I
2018

7

Japan Asia Investment Co., Ltd.
Fund Consolidationiv) Funds to reach maturity within three years of the fiscal year-end
For the year ending
March 31, 2020
(from April 1, 2019
to March 31, 2020)
Total commitment amount in investment
3,649
funds (Millions of yen)
No. of funds

3

For the year ending
March 31, 2021
(from April 1, 2020
to March 31, 2021)

For the year ending
March 31, 2022
(from April 1, 2021
to March 31, 2022)

6,944

500

4

1

Notes to tables i) to ⅳ) above:
1. The amounts stated for funds denominated in foreign currencies are calculated on the basis of the exchange rate
prevailing on the final day of the fiscal year-end. Therefore, changes in assets under management include the amountaffected by exchange rates.
2. The total amount of fund is listed as the amount of commitment base.

8

Japan Asia Investment Co., Ltd.
Fund Consolidation
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of December 31, 2019

AssetsCurrent assets
Cash and deposits

7,108

3,370

Operational investment securities

10,242

10,232

Allowance for possible investment losse(1,538)(1,624)

Operating loans

204

204

Other

347

432

Allowance for doubtful accounts
Total current assets(0)－

16,363

12,616

Non-current assets
Property, plant and equipment
Buildings and structures29

29

Accumulated depreciation

(16)

(16)

Buildings and structures, net

13

12

7,207

7,671

Machinery and equipment
Accumulated depreciation

(547)

(884)

Machinery and equipment, net

6,659

6,787

Vehicles, tools, furniture and fixtures

70

71

Accumulated depreciation

(60)

(62)

Vehicles, tools, furniture and fixtures, net

10

8

Land

22

87

Construction in progress

3,949

7,134

Total property, plant and equipment

10,656

14,030

Other

783

1,705

Total intangible assets

783

1,705

Investment securities

514

453

Claims provable in bankruptcy, claims provable inrehabilitation and other

82

64

Other

470

581

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(24)

(18)

Total investments and other assets

1,042

1,081

Total non-current assets

12,481

16,817

Total assets

28,84529,4339

Japan Asia Investment Co., Ltd.
Fund Consolidation(Millions of yen)
As of March 31, 2019

As of December 31, 2019

Liabilities
Current liabilities
Short-term borrowings

1,250

1,580

Current portion of bonds－

320

Accrued expenses

219

144

Income taxes payable

67

41

Provision for bonuses

62

22

Provision for loss on liquidation of subsidiaries andassociates

63

－

Other

48

34

1,711

2,143

－

220

Long-term borrowings

18,302

18,205

Deferred tax liabilities

12

63

Retirement benefit liability

116

120

Asset retirement obligations

301

365

Total current liabilities
Non-current liabilities
Bonds payable

Total non-current liabilities

18,733

18,974

Total liabilities

20,444

21,117

Net assets
Shareholders' equity
Share capital

5,426

5,426

Capital surplus

3,408

3,408

Retained earnings(1,952)(2,662)

Treasury shares

(353)

(353)

Total shareholders' equity

6,528

5,817

Valuation difference on available-for-sale securities

71

449

Foreign currency translation adjustment

195

156

Accumulated other comprehensive income

Total accumulated other comprehensive income

267

606

Share acquisition rights

21

24

Non-controlling interests

1,583

1,867

Total net assets

8,400

8,316

Total liabilities and net assets

28,84529,43310

Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated Statements of Income(Millions of yen)
For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)
Operating revenue

1,928

1,801

Operating cost

1,396

1,253

Operating gross profit

531

548

Selling, general and administrative expenses

979

939

Operating loss

(448)

(391)

Interest income

135

Dividend income

174Foreign exchange gains

52

2

Gain on investments in investment partnerships－

6

Miscellaneous income

83

Total non-operating income

9222Interest expenses

288

243

Miscellaneous loss

22

Non-operating income

Non-operating expenses

Total non-operating expenses

290

245

Ordinary loss

(647)

(614)

Gain on sales of non-current assets－

6

Gain on sales of investment securities

4

2

425

－

－

3

Extraordinary income

Gain on redemption of investment securities
Gain on liquidation of subsidiaries and associates
Gain on sales of shares of subsidiaries and associates－

4

Insurance claim income

35

1

Other

－

0

465

17

Loss on valuation of investment securities

4－

Loss on redemption of investment securities

24－

Provision for loss on liquidation of subsidiaries andassociates

73－

Total extraordinary income
Extraordinary losses

Other

0

－

Total extraordinary losses

102－

Loss before income taxes

(284)

(596)

Income taxes - current

12

15

Total income taxes

12

15

Loss

(296)

(612)

Profit (loss) attributable to non-controlling interests

(97)

98

Loss attributable to owners of parent

(199)

(710)

11

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income(Millions of yen)
For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)
Loss

(296)

(612)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method

25

374

(137)

(41)

(3)

198

Total other comprehensive income

(115)

531

Comprehensive income

(412)

(80)

Comprehensive income attributable to owners of parent

(291)

(372)

Comprehensive income attributable to non-controllinginterests

(121)

291

Comprehensive income attributable to12

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Cash Flows(Millions of yen)
For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)
Cash flows from operating activities
Loss before income taxes
Depreciation

(284)

(596)

12

11

Increase (decrease) in allowance for investment loss

(258)

78

Increase (decrease) in allowance for doubtful accounts

(37)

(6)

Increase (decrease) in provision for bonuses

(27)

(39)

Increase (decrease) in retirement benefit liability

114Interest and dividend income

(20)

(8)

Interest expenses

139

117

Loss (gain) on redemption of investment securities

(400)

－

Loss on valuation of operational investment securities

371

49

Decrease (increase) in investment securities for sale

45

(158)

Decrease (increase) in claims provable in bankruptcy,
claims provable in rehabilitation

8

17

Payment for purchase of investment funds(260)(1,383)

Dividends from investment funds

1,437

1,353

Increase (decrease) in investment funds of minority
interest

99

(140)

Other, net

(23)

(123)

Subtotal

812

(826)

Interest and dividends received

20

8Interest paid

(176)

(148)

Income taxes paid

(14)

(18)

352
994

34
(950)

(47)

(9)

Purchase of investment securities

(15)

(2)

Proceeds from redemption of investment securities

696

47

Other, net

7028

Net cash provided by (used in) investing activities

703

64

(2,170)(1,617)(3)(0)(2,173)(1,617)

Effect of exchange rate change on cash and cash
equivalents

(17)

(20)

Net increase (decrease) in cash and cash equivalents(491)(2,524)

Cash and cash equivalents at beginning of period

4,757

4,082

Cash and cash equivalents at end of period

4,265

1,557

Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of intangible assets

Cash flows from financing activities
Repayments of long-term borrowings
Other, net
Net cash provided by (used in) financing activities

13

Japan Asia Investment Co., Ltd.
Fund Consolidation(5) Notes on Quarterly Consolidated Financial Statements(Notice Concerning Notes on Matters Regarding the Assumption of Going Concern)
No applicable items(Notice Concerning Notes on Significant Changes in Shareholder’s Equity)
No applicable items

14

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Third Quarter Ended December 31, 2019
February 14, 2020

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Third Quarter Ended December 31, 2019

(As of December 31, 2019)

Disclosure of consolidated financial statements, etc., under the Previous accounting standards
As of Fiscal year ended March 31, 2007 the JAIC Group has adopted “Practical Solution on Application of Control Criteria and Influence
Criteria to Investment Associations” (Accounting Standards Board of Japan Practical Issues Task Force No. 20 issued on September 8,2006), and consolidated financial statements, etc., are being prepared with the inclusion in the consolidation of some of the operational
investment funds managed by the Group.
Nevertheless, to enable investors and shareholders to have an accurate understanding of the JAIC Group’s business results and financial
position, we consider it essential also to disclose financial statements, etc., prepared in accordance with the previous accounting standards.
Therefore, for reference purposes, the Group will continue to disclose financial statements, etc., in accordance with the previous accounting
standards.

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the third quarter ended December 31, 2019 (April 1, 2019 to December 31, 2019)(1) Consolidated results of operations (cumulative total)(Percentages indicate year-on-year increase or decrease)

For nine months ended
December 31, 2019
For nine months ended
December 31, 2018

Operating revenue

Operating income

Ordinary income

Millions of yen % change

Millions of yen % change

Millions of yen % change

Profit attributable toowners of parent
Millions of yen % change

937(22.8)

(658)

－

(753)

－

(752)

－

1,214

(61.5)

(459)

－

(512)

－

(197)

－

Yen

Diluted net income
per shareYen(42.53)－(11.18)－Net income per share
For nine months ended
December 31, 2019
For nine months ended
December 31, 2018

(2) Consolidated financial position

Total assets

Net assets

Millions of yen

Millions of yen%

As of December 31, 2019

14,972

6,452

42.9

Yen
363.09As of March 31, 201917,305

6,861

39.5

386.38(Reference) Total shareholders' equity

Equity ratio

Net assets per share

As of December 31, 2019: 6,427 millions of yen, As of March 31, 2019: 6,840 millions of yen

15

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)
The private equity investment business conducted by the Group is significantly affected by changing factors such as stock markets, given thecharacteristics of the business. In addition, it has been difficult to forecast results reasonably in the rapidly changing environment. Therefore
we do not disclose the results forecast. For the convenience of investors and shareholders, however, we disclose “result forecast
consolidated under the Previous Accounting Standard” even though it doesn’t have enough rationality.
(Percentages indicate changes from the corresponding period of the previous fiscal year)
Operating revenue
For the year ending
March 31, 2020

Operating income

Ordinary income

Millions of yen% change

Millions of yen% change

Millions of yen% change

2,600

5.0

70

(60.5)(60)－

Profit attributable to ownersof parent
Millions of yen% change100(82.7)Net income per share
Yen
For the year ending
March 31, 2020

5.65

(Note) Revision of dividends forecast during the current quarterly period: Yes
Net income per share in above chart is calculated based on the number of shares issued and outstanding excluding the number of shares oftreasury stock as at December 31, 2019.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements in this document are
based upon the information currently available to the Group at the time of writing and certain assumptions. The achievement is not promised.
Various factors could cause actual results to differ materially from these result forecasts.

16

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

3. Business Performance and Financial Condition(1) Breakdown of operating revenue and operating cost

(Millions of yen)

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)

For nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)

For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)

1,214

937

2,475

187

153

241

602

566

1,746

Fund interests income etc.

391

187

429

Other operating revenue

32

29

57

Total operating cost (C)

857

815

1,188

Cost of securities sold (D)

272

436

554

540

237

579

Fund interests losses etc.

40

137

49

Other operating cost

4

4

6

Operating gross profit (A) - (C)

356

121

1,286

Realized capital gains (B) - (D)

330

129

1,192

Investment income

(209)

(107)

613

Total operating revenue (A)Management fees
Proceeds of sales of operational
investment securities (B)Investment write-offs & Provision
for allowance for possible
investment losses (E)(B) - (D)-(E)(2) Asset, Liability and Net asset(Millions of yen)
As of December 31, 2018

As of December 31, 2019

As of March 31, 2019

Total asset

16,646

14,972

17,305

Total liabilities

10,3708,520

10,443

9,784

8,166

9,784

6,276

6,452

6,861

6,255

6,427

6,840

Loans payable
Total net asset
Total shareholders’ equity

17

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of December 31, 2019

AssetsCurrent assets
Cash and deposits

5,564

2,125

Operational investment securities

11,671

12,795

Allowance for possible investment loss

(1,018)(1,104)

Operating loans

204

294

Other

140

205

Allowance for doubtful accounts
Total current assets(0)－

16,561

14,316

Non-current assets
Property, plant and equipment
Buildings and structures29

29

Accumulated depreciation

(16)

(16)

Buildings and structures, net

13

12

Vehicles, tools, furniture and fixtures

70

69

Accumulated depreciation

(60)

(62)

Vehicles, tools, furniture and fixtures, net

10

7

Land

22

9

Total property, plant and equipment

46

29

Other

94

96

Total intangible assets

94

96

Investment securities

514

453

Claims provable in bankruptcy, claims provable inrehabilitation and other

82

64

Other

30

30

Allowance for doubtful accounts

(24)

(18)

Total investments and other assets

602

529

Total non-current assets

743

655

17,305

14,972Intangible assets

Investments and other assets

Total assets

18Japan Asia Investment Co., Ltd.
Previous Accounting Standard(Millions of yen)
As of March 31, 2019

As of December 31, 2019

Liabilities
Current liabilities
Short-term loans payable

896

507

Accrued expenses

71

68

Income taxes payable

67

41

Provision for bonuses

62

22

Provision for loss on liquidation of subsidiaries andassociates

63

－

Other

265

37

1,426

677

Long-term loans payable

8,887

7,658

Deferred tax liabilities

12

63

Retirement benefit liability

116

120

Total non-current liabilities

9,017

7,842

Total liabilities

10,443

8,520

5,426

5,426

Total current liabilities
Non-current liabilities

Net assets
Shareholders' equity
Share capital
Capital surplus

3,505

3,505

Retained earnings(2,006)(2,759)Treasury shares

(353)

(353)

Total shareholders' equity

6,571

5,818

Valuation difference on available-for-sale securities

312

620

Foreign currency translation adjustment

(44)

(12)

Total accumulated other comprehensive income

268

608

Accumulated other comprehensive income

Share acquisition rights

21

24

Total net assets

6,861

6,452

Total liabilities and net assets

17,305

14,97219

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(2) Consolidated Statements of Income(Millions of yen)
For nine months ended
December 31, 2019(from April 1, 2019 to
December 31, 2019)

For nine months ended
December 31, 2018(from April 1, 2018 to
December 31, 2018)
Operating revenue

1,214

937

Operating cost

857

815

Operating gross profit

356

121

Selling, general and administrative expenses

816

780

Operating loss

(459)

(658)

Interest income

115

Dividend income

174Foreign exchange gains

52

2

Gain on investments in partnership－

6

Miscellaneous income

73

Total non-operating income

8922Interest expenses

139

117

Miscellaneous loss

20

Non-operating income

Non-operating expenses

Total non-operating expenses

141

117

Ordinary loss

(512)

(753)

Gain on sales of non-current assets－

6

Gain on sales of investment securities

42

Extraordinary income

Gain on redemption of investment securities

425－

Gain on liquidation of subsidiaries and associates－

3

Gain on sales of shares of subsidiaries and associates

－

4

Other

－

0

429

16

Loss on valuation of investment securities

4－

Loss on redemption of investment securities

24－

Provision for loss on liquidation of subsidiaries andassociates

73

－

Other

0

－

Total extraordinary losses

102－

Loss before income taxes

(185)

(737)

Income taxes - current

12

15

Total extraordinary income
Extraordinary losses

Total income taxes

12

15

Loss

(197)

(752)

Loss attributable to owners of parent

(197)

(752)

20