Dear our shareholders,
It is a great pleasure for me as President and CEO of Japan Asia Investment
Co., Ltd. to report on our business plan for FY Mar. 2021.
To take this opportunity I would like to express my sincere gratitude to all ourshareholders and stakeholders for the continued support and patronage.

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JAIC is currently promoting the three-year medium-term management
plan which started from April 2018.
Fiscal Year which ends at Mar. 2021 represents the final year of thecurrent medium-term management plan.
Therefore, we will not only focus on implementing the measures under
the current management plan but also we strongly enforce our on-going
business activities in order to complete groundwork for the next threeyear medium-term management plan.
As shown on this chart, JAICʼs business can be largely classified into
three segments.
The first segment is the “Project Investment”.
Since our Project Investment started with mega solar projects in 2012,
we have been successful to expand our investment to wider range ofdifferent project.
For example, we have invested in Vegetable Plant, Distribution
Warehouses, Facilities for Handicapped people and Elderly people.
A distinctive feature of JAICʼs project investment is that we pursue
higher investment returns by leveraging investment with non-recourse
loans from various financial institutions.
In tandem with Project Investment, we provide Equity Investment topartner venture companies which conduct and operate aforementioned
projects.
This combination of Equity Investment and Project Investment is our3

unique business model where projects are developed by our partner
venture companies and JAIC, as a venture capital, will support theseventure companies.
The second segment is the Private Equity Investment. There are two
types of PE investment.
The first one is an Equity Investment to partner companies for Project
Investment as previously explained. We call this type of Equity
Investment as “Strategic Equity Investment”.
For other type of PE investments are, “Financial Equity Investment”.
This investment activities are conducted through independently
arranged and established special purpose investment funds contributed
from outside investors as Limited Partners.
The third segment is Fee Business which consists of advisory andconsulting service and administration service.
We have recently initiated services such as M&A Advisory Service,Consultation and Business Matching Services to support small andmedium companyʼs business expansion activities. We fully take anadvantage of our wide overseas business network to promote thisservice.
Meanwhile, Administration Service for funds such as fund accounting
and capital management are provided for the funds mainly operated byJAIC Groupʼs outside third parties.
We are planning to increase revenues from Project Investment, shown at
the top of this chart and Fee Income from the third segment to create
steady revenue source while seeking to boost additional earningsthrough capital gains from PE investment as shown in the middle part ofthis chart, and thus endeavor to enhance our corporate value.

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This chart shows more detailed breakdown of JAICʼs business
opportunities.
Please have your attention to the left-top box.
In the segment of Project Investment, Vegetable Plants, Group Homes
for Handicapped people and Renewable Energy, excluding Mega Solar
Projects, are positioned as investments that are expected to generate
stable earnings through long-term holding.
On the other hand, Mega Solar Projects, Nursing Care Facilities forElderly people, Distribution Warehouses are positioned as investmentsthat are expected to generate relatively larger profit by constantturnover of invested assets with the average cycle of 2-3 years. We will
focus on new investment into projects in this field going forward.
The left-bottom box shows business that are expected to make a stableearnings. JAICʼs subsidiary will provide fund administration services for
JAIC groupʼs funds as well as funds operated by third parties. We planto establish sustainable revenue structure by earnings generated bythese 3 segments.

4The right-bottom box features PE investment and fee businesses suchas M&A Advisory Services. Although this segment may be vulnerable,
significant earnings can be expected, if large deal is realized.
Meanwhile, as for PE investment, we aim to achieve higher investment
performance through reshuffle of current portfolio by carefully managing
divestiture and execution of each individual investment.
We have a fundamental policy to develop revenue structure with bothsustainability and high growth potential. We will pursue this policy byinvesting certain amount to equity assets in the fields where up-side
potential is expected, simultaneously, we will continue to invest into
Project Investment in the area where stable earnings contribution isexpected.

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As for mega solar projects, when we started this business in 2012, ourinitial plan was to hold each project for such a long period as until theexpiry of electricity sales period.
However, we have been approached by numbers of external investors
who wish to acquire our projects which have started to generate
electricity.
In addition, we have accumulated our experience in Project Investment
and we were able to increase and diversify our investment opportunity.
Considering this change of our investment environment in renewableenergy area, we have decided to modify our investment approach withmore flexibility by accelerating asset turnover with more frequent sales
and reinvestment to enhance profitability.
Since solar power generation is suitable for remote operation andmanagement, we believe that effectiveness of this system will berecognized by more people under Post-Corona-Virus circumstances.
As mentioned before and as shown in this diagram, our investment

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target in renewable energy industry have been diversified.
We have invested in renewable energy other than solar power
generation such as Bio-Mass, Bio-Gas, Wind-Power, and currently weare working to complete roof-top solar project in Vietnam.
We are also cultivating new business opportunities related to our Project
Investment activities.
For example, in a Bio-Gas project, we invested in a company which
supplies biogas utilized for biogas power generation. The company
engages in food waste recycling which is capable of reducing theamount of waste to approximately one-fifth while generating biogas
from the waste.
Smart Solar Corporation, one of the JAICʼs strategic partner companies
for the Mega Solar Projects, is engaged in household battery storage
business and rooftop solar power generation business for various
municipalities.
JAIC has been supporting Smart Solar Corporation for these businesses
as a shareholder by introducing potential business partners andproviding financial assistance.

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The right side of the chart introduces Sasayama Vegetable Plant, which
is our first vegetable plant for the project.
We grow lettuce and other vegetables at our plant and supply products
to companies which engage in producing cooked food and meals.
Our products are served to make sandwiches sold at a major coffee
chains and salads sold at supermarkets.
In recent years, due to the factors such as the aging of the agricultural
population and severe climate change, it has become difficult to supply
field grown vegetables constantly from quantity-wise as well as qualitywise in a certain area and season.
As a solution for this phenomenon, JAIC launched this project ofgrowing vegetables in indoor factory where climate is managed andproducts are supplied under controlled quality, quantity and pricing.
We started the operation of Sasayama Vegetable Plant in March 2019and have been currently working on the improvement of plant
operations and expanding distribution channels in collaboration withMorihisa Engineering Co., Ltd, our Strategic Partner Company.

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Through our business promotion activities, we have learned that, as we
had originally envisioned, there is a strong demand for plant vegetables
that can be supplied stably with high quality.
The vegetables grown at Sasayama Vegetable Plant have been highly
evaluated by our customers, and we are confident that this positive
signs may spread among our potential clients.
At present, we have been working hard to reach break-even point since
our plant has just started its operation. With making the project
profitable soon, we will go on to the second plant project.
The left side of the chart shows our Year-Round Strawberry Plant.
Strawberries are difficult to ship in summer when grown outdoors.
Considering huge demands on strawberries all year round, includingsummer season, we expect that it will be a great business opportunity togrow them in the plant equipped with special LED lights.
A venture company in Niigata called MD-Farm is conducting researchand development to grow this year-round strawberries on plantcultivation.
JAIC is providing equity to the company and supporting their R&D.
We are supporting this company to implement their production line in
full-scale by providing advice, based on our experience and knowledge
which we have accumulated through our vegetable plant business.
As we plan to develop these projects from long term perspective, we do
not expect to sell them in the short term. Rather we consider them as
long-term investment projects.

6Distribution Warehouse Project is a new investment subject which weinitiated during the previous fiscal year.
Up to present, we have already invested in two projects. These
investments in Distribution Warehouses are originated and developed
by KIC Holdings Inc., our Strategic Partner Company.
While the construction of large-scale distribution warehouses are driven
by major companies in recent years, our main investment targets aremedium-sized distribution warehouses that are smaller in scale but canbe tailored to meet customersʼ needs.
The Company has a strong knowledge and source of information
regarding possible construction sites and has the ability to coordinate
with stakeholders to develop profitable projects while avoiding
competition with big competitors.
We have set up a special purpose fund jointly with KIC.
Acquisition of land and construction of facilities are financed throughthis fund at an earlier stage of the project, for example, from the stageof obtaining a development license.
In the later stage, as the construction of facilities progresses, additional

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financing may be necessary to complete the project.
Additional financing will be raised from other investors and financial
institutions by means of non-recourse loans.
As JAIC has entered into this project at early-stage, compared to later
investors, JAIC is in the position to enjoy higher returns which areprovided by leveraged loans.
We will seek the opportunity to exit from the projects within two to three
years from our investment upon the completion of the facility.
With the proceeds obtained from such divestiture, we will repeatedly
invest in the same type of projects with the Partner.
In recent years, because of strong expansion of e-commerce market,
together with the problem of declining birthrate and aging population,
land transportation industry has been suffering to secure sufficientnumbers of truck drivers and a workforce for logistic facilities.
As a result, there is a growing demand for the distribution warehouses
with convenient transportation location, efficient delivery system andcargo management. We expect that investment opportunities for thisproject to increase rapidly in the near future.

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Our Strategic Partner Company, AIP Healthcare Japan GK develops
Facilities for Elderly People.
The Company focuses on the development of large-scale multifunctional elderly facilities in central part of Tokyo, where aged
population is expected to increase rapidly in the future.
In most cases, the facilities developed by the Company will be sold toREITs or investment funds shortly after the completion of construction.
JAIC has already made two investments to date developed by theCompany. We will continue to select projects carefully for further
investment to capture the opportunity to obtain capital gain.
In the previous fiscal year, we have started to develop and invest inGroup Home facilities for Handicapped people as a new project
together with our Strategic Partner Company, a venture company called
Social Inclu CO., LTD.
We have already developed three projects while providing equity
finance to the Company. We will strongly support the growth of theCompany by constructing many projects together with them.

8Both businesses are indispensable to create the society with morestable and secured system. JAIC is determined to further support theseventure companies which contribute to develop social infrastructures forbetter and safe life.
In this way, we are involved in a variety of Project Investments. JAIC will
maximize its effort to build appropriate investment allocation for eachsegment of Project Investment.

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In this section, I will explain about our Private Equity Investment
activities.
First category is an equity investment to our Strategic Partner
Companies, which are basically the operators for our Project
Investment. We call this type of equity investment as “Strategic EquityInvestment.”
JAIC has currently made equity investment in six companies listed hereas Strategic Equity Investment.
At the same time, JAIC is making Project Investment together with themfor Renewable Energy, Healthcare, Smart Agriculture and Distribution
Warehouse projects mainly operated by these companies.
We are creating a value added cycle to leverage on Project Investments
as a prop to help our Strategic Partner Companies grow and becomesustainable.
Going forward, we are expecting these Strategic Partner Companies togo public as a result of our support through Project Investment as well9

as our Strategic Equity Investment.
In addition, in the course of Strategic Equity Investment, JAIC holds
substantial portion of stakes as a shareholder for some of these partnercompanies. We expect to achieve a fair amount of gain from the tradesales of the shares in the event that IPOs do not take place.

9In this section, I will touch on the other type of equity investment.
We are categorizing equity investment other than Strategic Equity
Investment as “Financial Equity Investment."
In the case of Financial Equity Investments, in principle, investments
are executed through the funds which are mainly contributed byexternal investors. Such funds are operated individually and separately
in accordance with the purpose of different investors.
We are focusing on creating distinctive funds which make use of JAICʼsstrengths and expertise.
The newly established fund is a good example. This new fund, although
the size is limited, is created to support the globalization of Japanʼs
regional economy.
The fund is managed by JAIC together with Asian Market Planning Co.,
Ltd., our partner company. This fund will provide necessary finance andknow-how to local SMEs to support their overseas expansion as well as
business expansion related to inbound tourism.
We are inviting regional banks and financial institutions as fundinvestors. This fund will collaborate with regional banks and financial
institutions to support their client companies.
With this investment fund, the regional banks and financial institutions,10which are investors of this fund, will be able to utilize JAICʼs overseas
network as a tool to support their clients and obtain useful information
on overseas markets, especially from Asian region.
In addition, information obtained through the management of this fundwill be utilized to promote M&A Advisory Services which may createsynergy effects to JAICʼs other business line.
Through our solicitation activities, we found that regional financial
institutions have shown a strong interest in supporting the globalizationof their clients by investing in this fund. The fund was initiallyestablished with a small scale, however, we will achieve the good result
quickly and expand the fund size in short period of time.
The details of the fund will be released in our web-site as soon as thecoordination with the parties concerned is completed.

10Finally, let me refer to our Consulting Services.
We provide M&A advisory Services, Support for Overseas Business
Development, and Overall Consultation Services for Business Expansion.
We have started this services in the previous fiscal year.
We are currently working closely with various clients to close crossborder M&A advisory deal.
As explained earlier, we are not intended to conduct this businessindependently. We are providing M&A services arising from our invested
companies or arising through the activities to create value at ourinvested companies. We will utilize information and management
resources to create maximum synergy effects among our various
business operations.
Wide range of domestic and overseas network developed by JAIC is ourincomparable strength.
This diagram shows our network in Asia.
In China, we have a network of well experienced local staff and closerelationship with various levels of Chinese Authorities, government

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In Southeast Asia, we have a network of former JAIC professionals andreliable local companies with whom we have developed relationshipthrough past deals.
On the other hand, JAIC has maintained close relations with many
Japanese regional financial institutions for many years. By working withthese regional financial institutions, we are confident that new business
opportunities will be created by combining their customersʼ needs withJAICʼs capabilities to provide them with useful solutions.

11We are determined to make every effort to achieve our target figures for
Fiscal Year ending at Mar.31st 2021 by best performing the business
operations that I have explained.
JAICʼs Corporate Mission is, “As an investment company that links
Japan with the rest of Asian region, JAIC is committed to contribute to
the creation of more secure, stable and efficient future society under
the circumstance of structural problem derived from declining birthrate
and increasing aging population.”
We conduct our investment activities in accordance with this mission.
While we have reported our projects in the fields of Renewable Energy,
Distribution Warehouse, Smart Agriculture and Healthcare in thispresentation, we believe that all of them will play a great role in thePost-Coronavirus society.
We are currently preparing a Medium-Term Management Plan for theup coming three years. We are fully aware that next plan must take into
account of lifestyle in Japan under Corona-Virus impact and12

unforeseeable future relationship with Asian countries, while meetingthe expectation from our shareholders and stakeholders. We arecommitted to fulfil our new Medium Term Management Plan with yourgreat support and understanding.
Thank you so much for your kind attention.

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