Financial Results Overviewndfor 2 Quarter Ended
September 30, 2022
Japan Asia Investment Co., Ltd.
(JAIC) (TSE 8518)
Announcement date : November 14, 2022

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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Contents
1

Summary

P3

2 Results for the current quarter (year-on-year)

P4

3 Business plan progress report

P9

4 Result forecasts

P22

5 Appendix

P26

The figures in this document are based on consolidated financial statements prepared inaccordance with the previous accounting standards.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

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1. Summary
 Results for the current quarter (year-on-year)•

Operating revenue was ¥ ６６９ million (up, 75.8 %).
Sales of listed shares progressed in Japan and gains from project-oriented investments increased.

•

Quarterly net loss attributable to owners of parent was ¥ (６５５) million (down, ¥12 million).
Provisions increased and the vegetable plant was delayed in turning a profit.

 Business plan progress report•

Although the numerical plan is downside, the action plan is progressing smoothly.

•

The operating revenue plan was met by 50.4%.
Some domestic listed shares were suspended from selling due to sluggish stock prices.

•

Quarterly net profit attributable to owners of parent was 645 million yen lower than planned.
Provisions increased in addition to lower operating revenues.
Losses from the vegetable plant increased because production volume fell short of plan.

•

Healthcare and logistic, the next focus areas after mega solar, were recording profits and expanding the scale of assets.

 Result forecasts (compared to the previous forecast)•

Operating revenue of ¥3,1５0 million （up, 5％）, net profit attributable to owners of parent of ¥160 million （down, 70.9%）•

Sale of shares from IPO have been postponed to the next fiscal year. Sale of other listed shares will fall short of target.

•

Sales of unlisted shares and project-oriented investments are strong and are expected to exceed the previous forecast.

•Profit will decrease from the previous forecast.
Revenues with high profit margin will decrease.
Provisions will increase and loss from the vegetable plant will also increase.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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2. Results for the current quarter
Outline of results

P5

Break down of operating revenue & operating cost

P8

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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2. Results for the current quarter - Outline of results - I/S(million yen)

FY 2022 FY 2023
(2Q)
(2Q)

ChangeOperating revenue

381

669

75.8%

Operating cost

327

715

118.8%

Operating gross profit

53

(46)

-

SG&A expenses

550

552

0.4%

Operating income

(496)

(598)

-

Ordinary income

(538)

(640)

-

Profit attributable toowners of parent

(643)

(655)

-



Factors for increased operating revenue•

Private equity investment; sales of listed shares progressed in Japan•

Project-oriented investment; 1 mega solar project was sold, and profit dividend was implemented from a logistic warehouseproject that sold the facility in the previous fiscal year

Factors for increased operating cost•

Provisions increased. Provisions were recorded for investee companies those experienced significant delays in business progressor for which negotiation for the recovery of investment took a long time.

•

Losses from the vegetable plant increased. Timing of profitability was delayed more than expected.

 Losses from funds operated by other companies decreased. The losses incurred in the previous fiscal year
(mainly recorded as extraordinary losses) .

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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2. Results for the current quarter - Outline of results - B/S(million yen)
Total assets

Cash and deposits

FY 2022

14,9722,740

FY 2023 (2Q)

13,576

Changefluctuation factors(billion yen)

(9.3%)

2,394

repayments of loan (0.5),
execution of investments &(12.6%) loans (1.0), expenses etc.(0.4),
collection +1.6
execution of investments &loans +0.6, fund interests(13.5%) loss (0.1), distribution &collection (1.4)

Project oriented investment securities &
loans

6,781

5,868

Strategic investment securities in partnercompanies

1,783

1,665

(6.6%) unrealized gain (0.3)

Financial investment securities after
deducting allowance for possible
investment loss

3,029

2,957

(2.4%) collection (0.3), unrealized gain

Loans payable

5,943

5,448

(8.3%) repayments of loan (0.5)

Total shareholders' equity

7,779

7,019

(9.8%) loss (0.6), unrealized gain (0.1)

execution of investments +0.2,

execution of investments +0.3,+0.1, allowance (0.2)

Cash and deposits decreased due to repayments of loan, and payment of expenses and interests.

The balance of project-oriented investment decreased because investment collection exceeded investment execution.



After securing investment funds for future growth, we will repay loans payable to an appropriate level.

Total shareholders’ equity decreased due to loss and a decrease in unrealized gains on listed shares.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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2. Results for the current quarter - Outline of results - C/F(JPY million)

FY 2022 (2Q)

FY 2023 (2Q)

Operating cash flow

(1,232)

126

Investing cash flow

55

(0)

Financing cash flow

(697)

(494)

(1,855)

(342)

1,445

2,055

Change in net cash flow
Cash & cash equivalents at end of period

Operating cash flow; net cash generated from increased as investment collection progressed, andinvestment execution decreased.



Financing cash flow; net cash used in decreased because of a decrease of repayment of loans payable.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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2. Results for the current quarter- Break down of operating revenue & operating cost
Total

（JPY million）

FY 2022(2Q)

FY 2023(2Q)

Private equity investment

Project oriented investment

FY 2022(2Q)

FY 2022(2Q)

FY 2023(2Q)

FY 2023
(2Q)

381

669

293

361

87

308

Fund management fees etc.

81

69

77

65

3

3

Proceeds of sales of securities

176

441

176

292

-

149

Fund interests income etc.

95

136

32

0

63

135

Other operating reveue

27

22

7

2

19

19

327

715

292

520

35

195

Cost of securities sold

131

320

131

230

0

90

Investment write-offs and Provision forallowance for possible investment losses

124

275

124

275

-

-

Fund interests losses etc.

66

113

34

12

31

100

Other operating costs

4

6

1

1

2

4

53

(46)

1

(159)

51

113

Operating revenue

Operating cost

Operating gross profitPrivate equity investment – Revenue increased, and operating gross profit decreased•

Of operating revenue, proceeds of sales of securities increased due to progress of sales of listed shares in Japan.

•

Of operating cost, provisions were recorded for investee companies those experienced significant delays in business progress or for which
negotiation for the recovery of investment took a long time.

Project oriented investment – Revenue increased, and operating gross profit increased•

Of operating revenue, proceeds of sales of securities recognized due to 1 mega solar project sold.

•Of operating revenue, fund interests income etc. increased due to profit dividend from a logistic warehouse project that sold the facility in theprevious fiscal year.

•

Of operating cost, fund interests losses etc. increased due to delay in turning vegetable plant profitable and increased costs associated withlaunching new projects .

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report
Numerical plan

P10

Action plan

P11

Private equity investment

P12

Renewable energy

P14

Distribution centre (logistics warehouse)

P16

Healthcare (facility for the elderly)

P17

Healthcare (group home for the handicapped)

P18

New investment area

P20

Financial Results Overview for 2nd Quarter of FY Mar. 2023

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3. Business plan progress report – Numerical plan

(million yen)

Revised result
forecast(Disclosed on'22 Aug.)

Actual
FY 2023
1st Half

Achievement
ratio

Operating revenue

1,330

669

50.4%

Operating cost

740

715

96.8%

Operating gross profit

590

(46)

-

SG&A expenses

540

552

102.3%

Operating income

50

(598)

-

Ordinary income

0

(640)

-

Profit attributable toowners of parent

(10)

(655)

-



Operating revenue• Some domestic listed shares were suspended from selling due to sluggish share prices.
• Sales of some overseas unlisted shares were delayed in sales due to delays in the procedures.

Profit attributable to owners of parent• Capital gains from shares decreased due to a decrease of operating revenue.
• Provisions for possible investment losses increased.
• Production volume of the vegetable plant fell short of plan, and the timing of profitability was delayed more than expected.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – Action plan
Action plan for 3 years

Progress in second year (since Apr. 2022)

 Liquidate existing assets and complete asset
replacement.
 Originate three new funds.
 Support strategic partners to go on public.
Cultivate new investment areas and promotestrategic investment.

 “Succession Investment Limited Partnership, Ⅱ” wasnewly established. The fund is supporting thebusiness succession needs of SMEs in Japan.
 Executed 2 strategic investments

Renewable energy Increase investments in rooftop solar power
generation project in Vietnam and biogas projectin Japan.
 Sell mega solar projects in Japan after thecompletion to post gain on sale.

 Decided to invest in “non-FIT type” solar powersystems installed on the rooftops of distribution
centers
 Mega solar power plant in Iwaki City, Fukushima was
sold.

Distribution center(logistics
warehouse) Increase investments as a priority area.
 Invest in early stages of projects and achieve highreturns by attracting later stage investors looking
for middle-risk & middle returns.

 Received profit dividend from the project which soldits facility in last fiscal year The distribution center in Hidaka City, Saitama wasbuilt up in Apr. and sold. (This profit will be posted in
3Q.)

Healthcare (facility
for the elderly)Continue to invest in carefully selected projects

The facility in Minamiaoyama, Minato-ku was sold. (This
profit will be posted in 3Q.)

Healthcare (grouphome for thehandicapped)

Invest in 50 projects by originating funds from majorbanks and leasing companies

 3 group homes in Takamatsu City, (Kagawa), Oota
City and Kiriu City (Gunma) were built up.
 10 group homes were established by JAIC.
 2 group homes were established by the fund which
JAIC invested with a leasing company etc.

New investment area

Develop new investment area that will become a core
revenue generator from businesses related toexisting investment themes and other businessthemes which may arise from corona crisis

 Invested in 2 entertainment contents (one of themwas executed in October) Invested in a shared atelier project in Fujisawa City,
Kanagawa

Private equity
investment

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – Private equity investment
Establish second fundwhich supporting the business succession needs
Main portfolio of 1st fund

Outlie of 2nd fundName

Succession Investment Limited
Partnership, Ⅱ

Date of establishment

16, August 2022
AJ Capital Co., Ltd

General Partner[JV as a 50% stake in JAIC and Aozora
Bank, Ltd.]

Total commitment
amount1,801 million yen [at establishment]

Limited Partners

Aozora Bank, Ltd. and JAIC

Investment target

SMEs in Japan with businesssuccession needs



AJ Capital, JV as a 50% stake in JAIC and Aozora Bank, manages the fund.

Second fund which supporting the business succession needs

Mainly invest in small cap zone, Enterprise Value of less than 1 billion yen

Collaborate with regional financial institutions nationwide to ensure smooth business succession of SMEs



1st fund was established in June 2017. The 1st fund invested ７ companies and has succeeded in taking overthe business of 3 companies.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – Private equity investment
Executed 2 strategic investments
cycloop Co., Ltd.
Electric assisted bicycle
subscription service“NORUDE”

366 Co., Ltd.
Producing perpetual
memorial tree burial/
Supporting DX ofreligious corporations

神奈川県 小田原市
願修寺 樹木葬 小田原の森TM

静岡県 裾野市
光明寺 樹木葬 裾野の森®

東京都 台東区
長明寺 樹木葬 谷中樹陵 久遠®

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – Renewable energy
Decided to invest in “non-FIT type” solar power systems
installed on the rooftops of distribution centers

Strategic investee;
KIC Holdings Inc.



Strategic investee;
Smart Solar Corporation

These distribution centers were developed by KIC Holdings Inc., one of our strategic investees.
This non-FIT type solar power system was developed by Smart Solar, another strategic investee.

Combined and efficient operation of solar panels installed on the rooftop, storage batteries, and commercial powersources

A low environmental-load distribution center that uses sunlight to cover 60% of the power used by the facility

The clean energy generated can be consumed at low cost by the tenant of the facility.
Additionally, this system functions as an independent emergency power source in the event of a power outage.

This is the result of successful collaboration between strategic investee companies.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – Renewable energy
Mega solar power plant in Iwaki City, Fukushima was sold

Location

Iwaki City, Fukushima

Maximum
outputaround ２．４ MW

Expected
annualpower
generation

Around 2,9５0 MWh（Equivalent to annual
power consumption of
approx. 620 average
households ※）Start ofelectricity
sales

July 202２

Investment
exit

August 2022

※ Annual power consumption of average households are converted at 4,743 kWh per annum based on the Photovoltaic Power Generation
Association “Disclosure Guidelines (FY 2022).

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – Logistic warehouse
KIC Sayamahidaka Distribution Center was sold

Strategic investee;
KIC Holdings Inc.

Location

Hidaka City, Saitama

Accessapproximately 0.5 km fromthe Ken-O Expressway"Sayamahidaka IC",
approximately 4.8km from
Seibu Shinjuku Line "Sayama
City" Station

Outline ofwarehouse

Total floor space: 15,113㎡,
4 floors above ground

Investment
execution

Jan. 2021

Completion

Apr. 2022

Investment
exit

Jun. 2022

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – Facility for the elderlies
Facility in Minamiaoyama, Minato-ku was sold

Name

Plaisant Luxe Minami Aoyama
about 15 minutes from Tokyo
Metro Hibiya Line Hiroo Station,
17 minutes from Tokyo Metro

AccessChiyoda Line Omotesando Station,
about 15 minutes from Minami
Aoyama 7-chome bus stop, on
foot
Site area: 1,691.52㎡, Reinforced
concrete construction, 5 floors

Outlineabove ground,
Paid nursing home for the elderly(Capacity 61 people）

Investment
execution

Jan. 2021

Completion

May. 2022

Investment
exit

Jun. 2022

Financial Results Overview for 2nd Quarter of FY Mar. 2023

Partner company;
AIP Healthcare Japan GK© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report– Group home for the handicapped
3 group homes were built up in Kagawa and Gunma

Strategic investee;social inclu CO., LTD.

Social Inclu Home Takamatsu-kagawa Town [Kagawa]Social Inclu Home Kiriu-Niizato [Gunma]

Social Inclu Home Ootayabuzuka [Gunma]

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report– Group home for the handicapped
Expanded to 10 group homes
by strengthening cooperation with regional financial institutions



By strengthening cooperation with regional financial institutions, the speed of project development has
accelerated, and the target area has expanded.

Social Inclue, our partner company of group home for the handicapped business, operates these grouphomes.

We have also invested in Social Inclu and have proactively supported its growth through developing
projects.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – New investment area
Invested in 2 entertainment contents
Partner company;
PIA Global Entertainment Corporation”NAKED FLOWERS FOR YOU”
Through PIA Co., Ltd., invested in Tokyo's first permanent
hands-on art exhibition with the five senses

Financial Results Overview for 2nd Quarter of FY Mar. 2023

”Anime Festival Asia Singapore 2022”
In October, we participated in one of the largest J-POP cultural
events in Southeast Asia as an executive committee member,and PGE also participated as an executive committee member.

© Japan Asia Investment Co., Ltd. 2022

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3. Business plan progress report – New investment area
Invested in a shared atelier project in Fujisawa City, Kanagawa

Partner company;
ENJOYWORKS
A photo of "Sakurayama Shared
Atelier" where ENJOYWORKS
renovated an abandoned factory in
Sakurayama, Zushi City, Kanagawa.

Invested in a shared atelier project to renovate an abandoned factory in Fujisawa City, Kanagawa into ashared factory and shared atelier for creators and artists



ENJOYWORKS (“EW”), the partner company of this project, develops and renovates real estate for 15 years
since its incorporation. EW has successfully involved residents, local companies, regional financial
institutions and local government in EW’s projects and has developed various distinctive projects.



By utilizing the crowdfunding sympathetic investment fund "Hello! RENOVATION", EW solicits investment
from various related population and raises the funds necessary for development.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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4. Result forecasts
Business policy for FY Mar. 2023

P23

Breakdown of result forecast

P24

Cautionary statements

P25

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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4. Result forecasts for FY Mar. 2023 - Business policy

Business
Policy

Secure profits and funds by selling existing financial investment assetsIncrease the balance of project investment based on the new investment policyEstablish a hands-on investment style through collaboration in project investment andincrease capital gains from strategic investees

Basic
policyIncrease capitalgains fromstrategic
investees

Liquidatefinancialinvestment
assets early

Priority
measures

Basic
policy• Increase thebalance of project
investment• Diversify
investment target
projects

Financial Results Overview for 2nd Quarter of FY Mar. 2023

Priority
measures•

Keep the balance of financial investment within therange of equity capital•

Increase capital gains by providing hands-on
support to strategic investees•

Liquidate financial investment assets in maturity
venture funds early•

Forming investment funds in collaboration withpartners and, in principle, investing in financial
investment assets from these funds•

Provide hands-on support to strategic investees andrealize their IPO early•

Increase the balance of project investment•

Diversify investment target projects and invest in
the partner companies of new investment area•

Accelerate investment in logistics warehouses andgroup homes for the handicapped as the next pillarof earnings for the Mega Solar Project•

Realize the sale of existing logistics warehouses.

•

Aiming for early profitability of the vegetable plant•

Diversify investment target projects and invest in
the partner companies of new investment area

© Japan Asia Investment Co., Ltd. 2022

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4. Result forecasts for FY Mar. 2023
- Breakdown of result forecast
Result forecast
FY2022(Disclosed on '22
May)

Result forecast
FY2022(Revised on '22
Nov.)

Operating revenue

3,000

3,150

5.0%

Operating cost

1,050

1,690

61.0%

Operating gross profit

1,950

1,460

(25.1%)

SG&A expenses

1,200

1,140

(5.0%)

Operating income

750

320

(57.3%)

Ordinary income

650

280

(56.9%)

Profit attributable toowners of parent

550

160

(70.9%)(million yen)Change (%)

Sales of listed shares will sharply fall short of expectations.
• Expected sales of shares from IPO have been postponed to the next fiscal year due to lock-up regulation.
• Expected sales of existing listed shares will fall short of target because the share prices have been lower than expected.
 Sales of unlisted shares are expected to exceed the previous forecast. At the beginning of the fiscal year, we expected tosell the shares of an investee company from the next fiscal year onwards through an IPO. However, we will sell all theseshares in the current fiscal year through M&A.
 Sales of project-oriented investment is also going smoothly. We have already completed the sale procedures of projects
such as nursing care facility, logistic warehouse and another facility, and are waiting for the confirmation of profits.
 Net profit attributable to owners of the parent dropping from the previous forecast due to delay of sales of listed shareswith a high margin. Additionally, provisions and losses from the vegetable plant will increase.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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4. Result forecasts for FY Mar. 2023 - Cautionary statements
 The private equity investment business conducted by theGroup will be significantly affected by changing factors suchas stock markets, given the characteristics of the business. In
addition, it has been difficult to forecast results reasonably inthe rapidly changing environment.
 For the convenience of investors and shareholders, however,
we disclose “result forecast consolidated under the Previous
Accounting Standard” even though it doesn’t have enoughrationality.
 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 JAIC and certain assumptions. The
achievement is not promised. Various factors could cause
actual results to differ materially from these result forecasts.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix
Renewable energy projects

P27

List of project oriented investments

P28

Strategic investment

P32

Asia network

P33

Funds & investment activities

P34

Business results & financial position

P35

Break down of operating revenue & operating cost

P36

Business field

P37

Profit structure

P38

Core competence

P40

Efforts for SDGs

P41

Company data

P42

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - Renewable energy projects(as of September 2022)
Mega solar projects
Started electricity sales 9 projects (11 power plants) 22.2 MW
Under construction or under planning
4 projects 8.5 MW
Total
13 projects (15 power plants) 30.7 MW
attributable to JAIC
13.1 MWTransfers to buyers other than the funds operated by the JAIC Group

33 projects

Aomori, Bio gas,
1project 0.03MW

189.0 MW
Iwate, Solar,
1 project 2.4MW*Underlined projects are invested from JAIC
Solar Fund L.P., Ⅱ

Fukushima, Solar,
1 project 2.7MW

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

Kumamoto, Solar
1 project 3.1MW

Hokkaido, Solar,
1 project 2.3MW

Tochigi, Solar,
3 projects 6.0MW

Mie,
Kagawa, Solar
4 projects 8.7MW Woody biomass, 1 project 2.0MW
Wind power,
1 project at most 25.2MW

Tokyo, Bio gas,
1 project 1.1MW
Kanagawa, Solar,
1 project 2.5MW* 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 not necessarily linked
to the MW figure of the project.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - List of project oriented investments(as of September 2022)
Type ofproject
Solar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded,¥]1

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

3.1

Started electricity sales in Dec. 2015

40

2

Nomaike solar power plant(*)

2.4

Started electricity sales in May. 201736

3

Mitakabeike solar power plant(*)

1.5

Started electricity sales in Sep. 201732

4

Iwate Ichinoseki solar park(*)

2.4

Started electricity sales in Jan. 2018

36

5

Nakaoudaike solar power plant(*)

2.4

Started electricity sales in Apr. 201836

6

Higashioudaike solar power plant(*)

2.4

Started electricity sales in Jul. 201836

7

Hirono solar park

2.7

Started electricity sales in Feb. 2020

40

8

Akkeshi Luke Supor Solar Power Plant

2.3

Started electricity sales in May 2020

40

9

Akada solar power plant

2.5

Under construction

32

10

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

11

Tochigi

2.0

Under planning36

12

Tochigi

2.0

Under construction

32

13

Tochigi

2.0

Under planning32

3.0 in total

Total 30.7MW [attributable to JAIC 13.1MW]*Projects that are invested from JAIC Solar Fund L.P., Ⅱ

Financial Results Overview for 2nd Quarter of FY Mar. 2023

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5. Appendix - List of project oriented investments(as of September 2022)
Type of project

No.

Woody biomass
Bio gas1

Location

Generation Capacity[MW]

Current status

FIT[tax excluded,¥]

Matsusaka City, Mie

2.0Started electricity sales in Jan. 2018－

Hamura City, Tokyo

1.1

Started electricity sales in Mar. 2021

39

Food recycle company that generates
biogas for power generation[operator of Hamura biogas power
generation]－

Started electricity sales in Nov. 201839

Under planning

22

2

3
Wind power

Type ofproject

0.03

Mie

No.

At most 25.2

Location

Project scale

Current status

Tamba Sasayama City, Hyogo

Annual production: 470 tons in total

Existing part: started operation in
Mar. 2019
Expansion part: full-scale operation
started in Aug. 2022

1

Atsugi City, Kanagawa

Total floor area 10,890 m² (scheduled), 2
stories above ground

Under construction (Built up in Oct.
2022)

2

Ebina City, Kanagawa

Undecided

Under construction or Under
planning

3

Akiruno City, Tokyo

Total floor area 25,804 m² (scheduled), 4
stories above ground

Under construction or Under
planning

4

Non-disclosed

Non-disclosed

Under construction or Under
planning

5

Non-disclosed

Non-disclosed

Under construction or Under
planning

Vegetable
plant

Logistics
warehouse

Touhoku Town, Aomori

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - List of project oriented investments(as of September 2022)
Type ofproject

No.

Facility forthe elderly

1

Shinonome, Koto-ku, Tokyo1

Hamamatsu City, Shizuoka

Started operation in Aug. 2020

2

Hiroshima City, Hiroshima

Started operation in Aug. 20203

Utsunomiya City, Tochigi

Started operation in Sep. 2021

4

Kazo City, Saitama

Built up in Feb. 2022

5

Sano City, Tochigi

Started operation in Sep. 2022

6

Koga City, Ibaragi

Started operation in Oct. 2022

7

Tatebayashi City, Gunma

8

Takamatsu City, Kagawa

Built up in May 2022

9

Oota City, Gunma

Built up in June 2022

10

Kiriu City, Gunma

Built up in Sep. 2022

11

Kawagoe City, Saitama

Under construction

12

Iwaki City, Fukushima

Under construction

13

Higashikagawa City, Kagawa

Under construction

Group home
for thehandicapped

Location

Project scale
8-story complex facility with a capacity of
100 people

20 rooms for residents, 2 rooms for shortstay

Financial Results Overview for 2nd Quarter of FY Mar. 2023

Current status
Under construction

Built up in Mar. 2022

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - List of project oriented investments(as of September 2022)
Type ofproject

No.

Location

Details of projectCurrent status

Others1

Aichi

Commercial building, site area 1,752 m², 1 basement floor, 6
floors above ground

Opened*investment in building which has
already started operation

2-

Entertainment contents, “Naked Flowers For You”

Held on the 8th floor of Yurakucho
Marui since March 2022

3

Kanagawa

A shared atelier project to renovate an abandoned factory

Under planning

4-

Electric assisted bicycle subscription service

Executed investment in Aug. 20225

Non-disclosed

Non-disclosed

Non-disclosed

6Non-disclosed

Non-disclosed

Non-disclosed

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix – Strategic investment

Renewable Japan Co., Ltd.
Partner company in mega solar
projects
IPO date : 22 Dec. 2021
Stock market : TSE Mothers

Morihisa Engineering Co., Ltd.
Morvel Farm (subsidiary of Morihisa
Engineering)Partner company in smart
agriculture projects (vegetables)

Smart Solar Corporationsocial inclu CO., LTD.

Partner company in mega solar
projects

Partner company in projects forgroup homes for the handicapped

MD-Farm

KIC Holdings Inc.

Partner company in smart
agriculture projects (strawberries)

Partner company in distribution
warehouse projects

366 Co., Ltd.

cycloop Co., Ltd.

Partner company in perpetual
memorial tree burial project

Partner company in electric assisted
bicycle subscription service

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - Asia network

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2022(2Q)

FY 2023(2Q)

New & increased funds

1,000

2,000

1,359

151

1,001

1,001

1,801

AUM of funds - total *1

19,15016,494

17,39016,45016,463

15,884

16,787

AUM of funds - JAIC *1

5,867

5,344

5,163

5,434

4,953

4,716

3,849

Execution of investnemts (Total)*2

3,887

3,749

3,374

1,767

3,420

2,214

1,324

Balance of investments (Total)*2

13,981

13,951

15,101

12,855

13,784

14,741

13,618

Execution of investnemts (project oriented investment)*2

2,681

3,612

2,150

1,445

1,938

932

600

Balance of investments (project oriented investment)*2

3,582

5,514

6,696

6,088

6,344

6,986

6,191

Execution of investnemts (private equity)*2

1,205

136

1,224

322

1,482

1,282

724

Balance of investments (private Equity)*2

10,398

8,437

8,405

6,767

7,440

7,754

7,427

Note 1: Since the number of funds in the course of being wound up while possessing investment assets has increased, funds
during the liquidation procedure are included in the scope of disclosure from FY March 2021.
Note 2: Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed
from FY March 2021 to include loans extended to the projects (excluding distressed receivables) in the scope of aggregation.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2022(2Q)

FY 2023(2Q)

Business results
Operating revenues

5,403

2,475

2,760

3,089

2,409

381

669

Operating gross profit

2,328

1,286

1,359

1,301

1,276

53

(46)

SG&A expenses

1,311

1,109

1,094

1,086

1,189

550

552

Operating income

1,017

177

265

214

86

(496)

(598)

Ordinary income

954

83

140

173

61

(538)

(640)

Net income

874

578

302

144

49

(643)

(655)

Cash and deposits

7,308

5,564

3,920

3,699

2,740

2,015

2,394

Operational investment securities and operatingloans of project oriented investment

3,582

5,514

5,437

5,583

6,781

6,475

5,868

Operational investment securities of strategic
investment in partner companies

373

373

1,005

1,155

1,783

1,483

1,665

Operational investment securities of financial
investment after deducting allowance for possible
investment loss

5,657

4,765

4,282

3,111

3,029

2,974

2,957

Loans payable, bonds & bonds with subscription
rights to shares

11,954

9,784

8,166

6,950

5,943

6,253

5,448

Total shareholders' equity

6,545

6,840

7,223

7,338

7,779

6,640

7,019

Total assets

19,22017,30515,80014,657

14,972

13,74013,576

Financial position

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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

FY 2018

FY 2019

FY 2020

FY 2021

FY2022(2Q)

FY 2022

FY2023(2Q)

Change(%)

１． Fund management operation
Fund management fees and others

277

241

199

169

154

81

69

(14.7%)

Success Fees

86

-

-

-

-

-

-

-

Operating revenue

364

241

199

169

154

81

69

(14.7%)

-

-

-

-

-

-

-

-

364

241

199

169

154

81

69

(14.7%)

Proceeds of sales of securities

3,219

1,746

2,349

2,221

1,573

176

441

150.4%

Fund interests income etc.

1,677

429

172

648

631

95

136

42.2%

4,897

2,176

2,521

2,870

2,204

272

578

112.3%

2,469

554

965

1,249

810

131

320

144.1%

562

579

245

194

145

124

275

121.2%

36

49

184

336

167

66

113

70.3%

Operating cost

3,069

1,182

1,395

1,780

1,123

322

709

120.0%

Operating gross profit

1,827

993

1,125

1,090

1,081

(50)

(131)

-

142

57

40

49

50

27

22

(18.2%)

5

6

5

7

10

4

6

35.9%

136

51

34

41

40

22

16

(29.1%)

Operating revenues

5,403

2,475

2,760

3,089

2,409

381

669

75.8%

Operating cost

3,074

1,188

1,401

1,788

1,133

327

715

118.8%

Operating gross profit

2,328

1,286

1,359

1,301

1,276

53

(46)

-

Operating cost
Operating gross profit
２． Investment operation

Operating revenue
Cost of securities soldInvestment write-offs and Provision forallowance for possible investment losses
Fund interests losses etc.

３． Others
Operating revenue
Operating cost
Operating gross profit
Total

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - Business field

Private equity investment
JAIC provides growth capital in venturecompanies and small and medium sizedenterprise (“SME”) with high growthpotential, as well as to SMEs withsuccession 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

Project oriented investment

Strategic investment in partnercompanies that correspond toselected themes of JAIC.

JAIC has been investing to renewable energy
industries represented by solar energy as well as
to healthcare industry such as nursing facilities
and facilities for persons with disabilities.

JAIC provides “hands-on”
support to partner companies
to improve its businesspromotion and financing
activities, etc.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

In addition to above, JAIC is determined toinvest to new areas such as smart-agri business
represented by vegetable plant and logistic
industry such as distribution center where
JAIC’s accumulated expertise can be leveraged.

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - Profit structure – Private equity investment•

Private equity investment is an investment in promising companies centered on venture companies and small and mediumsized enterprises in the Asian region including Japan. We support investee companies to increase their corporate value andobtain capital gains.

•

We also perform intermediary business as an FA based on the needs of M & A obtained through our investment activities.

•

There are two types of private equity investments. One is "strategic investments" in partners of project-oriented investment
and the other is "financial investments".

•

For investees of strategic investments, we not only support them as shareholders, but also manage projects together aspartners and support their growth.

•

For investees of financial investment, we provide not only the listing support but also provide overseas expansion support andsales support. We utilize our experience and wide network which we have built up through many years of investment activities
when we support our investees. To that end, we are building a network in Asia by forming business alliances with government
agencies in China and partner companies in Asian countries.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - Profit structure – Project oriented investment•

We invest in SPCs (special purpose companies) that own facilities such as power plants, factories, residential facilities andwarehouses. We construct these facilities and receive the profits generated by the operation of the facilities in proportion to
the investment. In some cases, these facilities are sold for profits after completion.

•

We invest in projects such as renewable energy, healthcare (facility for the elderly, group homes for the disabled), smart
agriculture (vegetable plant), and distribution center (logistics warehouse).

•

We are pursuing high profitability with a small amount of investment funds by procuring non-recourse loans from financial
institutions. Most of the funds for the construction and operation of the project is procured by these loans.

•

In addition, in order to flexibly invest in projects in various fields, we collaborate with venture companies that are familiar withproject planning and development.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - Core competence
Historical background in Asian region
Since its establishment in 1981 by the Japan
Association of Corporate Executives (Keizai

Capability to capture up-to-datebusiness information
Through the activity of exploring promising
companies and investment opportunities,

Doyukai), JAIC has contributed to economic
exchange between Japan and Asian countries
over 35 years which led to high namerecognition.

JAIC has capability to capture highly
professional and cutting-edge information
on various corporates.

Expertise to structure sophisticatedfinance scheme
JAIC’s accumulated invested volume inside andWide range of network with venture companies

outside of Japan is Japanese Yen 330 billion.
For the project oriented investment, in addition

JAIC has track record of leading more than 300 invested venture

to providing direct equity investment, JAIC has

companies to “Going Public”. Through the long time investment

been arranging various financing scheme

activities, JAIC enjoys close relationship with wide range of venture

utilizing project-finance approach and leveragecompanies. Based on this intangible asset, JAIC is utilizing thefinancing together with financial institutions.

network to create value for invested companies through businessmatching and cultivating new business theme for JAIC’s own.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix – Efforts for SDGs
Becoming an SDGs investment company as our core value, we will thoroughly carry out
investment activities with a strong awareness of SDGs based on our management policy.

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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5. Appendix - Company data (as of September 30, 2022)
Company name

Japan Asia Investment Co., Ltd.

Abbreviation; JAIC

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, Standard Market (Securities code 8518)

Employees

40 (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 :Masafumi Hatta
Chairman of Audit & Supervisory Committee:Kazunori Omori
Member of Audit & Supervisory Committee

Financial Results Overview for 2nd Quarter of FY Mar. 2023

:Hitoshi Yasukawa[Outside/Independent]:Tadashi Nunami[Outside/Independent]:Harumi Katagiri[Outside/Independent]© Japan Asia Investment Co., Ltd. 2022

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Disclaimer

The information in this document is for presentational purposes only and is not an
inducement to invest in securities issued by JAIC.



Any forward-looking statements in this document are based on materials available at thetime of its compilation and no guarantee can be made as to the continued accuracy andreliability of the material. The contents may be changed without prior notice. Risks anduncertainties including changes to economic circumstances may cause results andprojections to differ materially from those presented in the document.



JAIC owns all copyrights and other rights to all information contained in this material,and it is prohibited to copy or divert it without the permission of JAIC.



The figures in this document are based on consolidated financial statements prepared inaccordance with the previous accounting standards.

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

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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https://jaic-vc.co.jp
Contact to:
Kenji Kishimoto, Executive Officer
Miyuki Maruyama, Administration GroupIR e-mail : ir@jaic-vc.co.jp

Financial Results Overview for 2nd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2022

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