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, 2018
[Japanese Standards](Summary of Japanese announcement)
February 14, 2019
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, 2019
Scheduled date for start of payment of dividends: —The additional materials of the Financial Results: Yes
The briefing session of the Financial Results: No(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, 2018 (April 1, 2018 to December 31, 2018)(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, 2018

1,928

(67.4)

(448)

―

(647)

―

(199)

—

For nine months ended
December 31, 2017

5,916

58.3

320

(32.5)

98(61.6)

306

741.9(Note) Comprehensive Income
For nine months ended December 31, 2018: (412) millions of yen (－%)
For nine months ended December 31, 2017: 22 millions of yen (－%)

Yen

Diluted net income
per shareYen(11.25)

―

17.32

17.28

Net income per share
For nine months ended
December 31, 2018
For nine months ended
December 31, 2017(2) Consolidated financial position

As of December 31, 2018
As of March 31, 2018

Total assets

Net assets

Millions of yen
29,548Millions of yen
7,793

Equity ratio
%

Yen

21.0

350.87

27,184

8,053

23.9

367.34(Reference) Total shareholders' equity
As of December 31, 2018: 6,211 millions of yen /As of March 31, 2018: 6,503 millions of yen

1

Net assets per shareJapan Asia Investment Co., Ltd.
Fund Consolidation
2. Dividends(Base date)Year ended March
31, 2018
Year ending March
31, 2019
Year ending March
31, 2019 (forecast)End of first quarter
Yen

Dividends per share
End of third quarter
Yen

End of second 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, 2019(April 1, 2018 to March 31, 2019)
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 does not have enough rationality. For details, please refer to “2. Outlook for the fiscal year ending March 31, 2019 (April 1,2018 to March 31, 2019)” on page 15.
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.
4. Other matters(1) Changes among significant subsidiaries (Changes among specific subsidiaries resulting in changes in the scope of
consolidation): Yes[New 1 company (company name: 1 investment fund) Excluded 1 company (company name: 1 investment fund)](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: Yes(ii) Changes other than shown in (i) above: None(iii) Changes in accounting estimates: None(iv) Correction of prior period errors: None
For details, please refer to “3. Consolidated Financial Statements (5) Notes on Quarterly Consolidated Financial Statements(Change in accounting policy)” on page 13.
(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 2018:
treasury stock)(ii) Shares of treasury stock at theNine months ended
end of each period
December 31, 2018:(ii) Average number of shares
Nine months ended
during the period (cumulative
December 31 2018:
quarterly consolidated period)

17,884,392
sharesYear ended
March 31, 2018:

17,884,392
shares181,009
sharesYear ended March
31, 2018:

181,009
shares17,703,383
sharesNine months ended
December 31,2017

17,691,451
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, 2018 will be released on our
website on February 14, 2019.
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.

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, 2017(from April 1, 2017
to December 31, 2017)
Total operating revenue (A)For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)

For the year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)

5,916

1,928

8,303

Management fees

131

118

177

Contingency fees

55

―

55

4,937

649

6,747

Fund interests income etc.

734

1,130

1,124

Income gains

37

14

68

Other operating revenue

19

14

130

Total operating cost (C)

4,588

1,396

5,656

3,831

302

4,787

599

673

630

153

416

232

4

4

5

Operating gross profit (A) - (C)

1,327

531

2,646

Realized capital gains (B) - (D)

1,105

347

1,959

506

(325)

1,329

For nine months ended
December 31, 2017(from April 1, 2017
to December 31, 2017)

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

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

Investment income(B) - (D) – (E)(2) Cash flows(Millions of yen)
For the year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)

Cash flow from operating activities

(180)

994

1,870

Cash flow from investing activities

197

703

238

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

2,659

4,265

4,757

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, 2017
AmountAs of December 31, 2018
(B)/(A)(B)/(A) (%)
Amount(%)

As of March 31, 2018
(B)/(A)
Amount(%)

Operational Investment Securities(A)

13,354

―

9,433

―

9,394

―

Allowance for Possible Investment
Loss (B)(2,163)

16.2(1,519)16.1(1,535)

16.3(4) Breakdown of Loans payable(Millions of yen）
As of December 31, 2017

As of December 31, 2018

As of March 31, 2018

Total of loans payable

18,84620,806

18,367

Non-consolidated base loans
payable11,954

9,784

11,954Loans payable of SPC etc.
by project finance

6,892

11,021

6,412

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, 2017(from April 1, 2017
to December 31, 2017)
AmountNumber of(Millionsofcompanies
yen)

For nine months ended
December 31, 2018(from April 1, 2018
to December 31, 2018)
Number ofAmountcompanies (Millions ofyen)

For the year ended
March 31, 2018(from April 1, 2017 toMarch 31, 2018)
Number ofAmountcompanies (Millions of
yen)

Area
Japan

20

3,184

10

2,733

20

3,639

China, Hong Kong, Taiwan

2

139

1

86

3

191

Southeast Asia

-

-

-

-

-

-

Others

1

56

1

0

1

56

11

2,226

8

2,683

11

2,681

12

1,153

4

136

13

1,205

4

640

1

86

5

692

4

231

1

0

4

231

1

146

-

-

1

146

2

84

2

50

2

84

1

50

-

-

1

50

23

3,379

12

2,819

24

3,887

Industry
Project Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
OthersTotalii) Balance of investment
As of December 31, 2017
Number ofcompanies

Amount(Millions of
yen)

As of December 31, 2018

As of March 31, 2018

Number ofcompanies

Amount(Millions ofyen)

Number ofAmountcompanies (Millions of
yen)

Area
Japan

112

10,355

84

7,924

97

7,817

China, Hong Kong, Taiwan

46

5,862

42

5,164

45

5,912

Southeast Asia

5

189

5

189

5

189

Others

7

61

7

116

7

61

28

5,207

26

4,836

24

3,582

142

11,260

112

8,558

130

10,398

30

4,374

29

3,540

30

4,156

63

2,641

51

2,230

58

2,581

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

10

963

6

462

8

863

17

1,492

15

1,183

16

1,242

22

1,790

11

1,141

18

1,555

Total
170
16,468138
13,394154
13,981Note:
1. QOL (Quality of Life); Biotechnology, Medical Service, Welfare Service, Medical Device, Drug Medicine, etc.
2. Investments in funds managed by third parties other than JAIC Group in which the JAIC Group is not involved in the
management, are not included.
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, 2017(from April 1, 2017
to December 31, 2017)1 company
1 company
2 companies

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

For the year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)
1 company
1 company
2 companiesii) First price multiple
For nine months ended
For nine months ended
For the year ended
December 31, 2017
March 31, 2018
December 31, 2018(from April 1, 2017(from April 1, 2017(from April 1, 2018
to December 31, 2017)
to March 31, 2018)
to December 31, 2018)Japan
3.1 times
10.8 times
3.1 times
Overseas
3.2 times
3.2 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, 2018 (from April 1, 2017 to March 31, 2018)
Company
Date ofMarketBusiness
Name
IPO
Suzhou Institute of Building
Construction survey, new building
5-Sep-17
SSE A-shares
Science Groupmaterials, professional construction- Collection, transport, intermediate
treatment and permanent disposal ofindustrial waste
MIDAC CO., LTD.
22-Dec-17 NSE 2nd Sec.
- Collection, transport andintermediate treatment of generalwaste
For nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)
Date ofCompany
MarketBusiness
Name
IPO
Providing ASP licensing services
for big data analytics of patents(TechRadar) and documents
VALUENEX Inc.
30-Oct-18
TSE Mothers(DocRadar), and offering
consulting services utilizing thesetools and unique methodologies

Headquarters
China

Japan

Head
quarters

Japan(3) Management of Investment Funds (Funds for which JAIC and its Group are responsible for management
and provision of essential information)i) Balance of funds under management
As of December 31,
2017

As of December 31,
2018

Total commitment amount in
23,481
18,062
investment funds (Millions of yen)
Total commitment amount of JAIC
7,356
5,377
group (Millions of yen)
No. of funds
15
11
Note: Funds being wound up after their maturity are not included in the data above.

6

As of March 31, 201819,1505,867
12Japan Asia Investment Co., Ltd.
Fund Consolidationii) Funds newly established or whose assets were increased

For nine months ended December 31, 2017 (from April 1, 2017 to December 31, 2017)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Assets increased
1,000
1Increase in fund value (Millions of yen )‐No. of funds‐

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

Assets increased‐

Increase in fund value (Millions of yen)‐

No. of funds

2,000
1

For the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Assets increased
1,000
1Increase in fund value (Millions of yen)‐

No. of funds‐iii) Details of funds newly established or whose assets were increased
For nine months ended December 31, 2017 (from April 1, 2017 to December 31, 2017)
Total commitment amount
Date of
Name of fundin investment funds
Main investment targets
establishment（Millions of yen）
Succession Investment
June 2017
1,000
SMEs in Japan which has successor problem
Limited Partnership, I
For nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)
Date of
Increase in fund value
Name of fundassetsMain investment targets（Millions of yen）
increased
June &
Succession Investment
October
2,000
SMEs in Japan which has successor problem
Limited Partnership, I
2018iv) Funds to reach maturity within three years of the fiscal year-end
For the year ending
For the year ending
March 31, 2019
March 31, 2020
(from April 1, 2018 to(from April 1, 2019 toMarch 31, 2019)
March 31, 2020)
Total commitment amount in
3,822
7,285
investment funds (Millions of yen)
No. of funds

3

4

For the year ending
March 31, 2021
(from April 1, 2020 toMarch 31, 2021)
1,454
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.

7

Japan Asia Investment Co., Ltd.
Fund Consolidation

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of December 31, 2018

AssetsCurrent assets
Cash and deposits

9,019

Operational investment securities

6,332

9,394

9,433

(1,535)(1,519)Operating loans

204

204

Other

614

678

Allowance for possible investment losse

Allowance for doubtful accounts
Total current assets

(39)

（0）

17,65815,128Non-current assets
Property, plant and equipment
Buildings and structures29

29

Accumulated depreciation

(15)

(15)

Buildings and structures, net

14

13

4,223

8,526

Machinery and equipment
Accumulated depreciation

(257)

(597)

Machinery and equipment, net

3,965

7,929

Vehicles, tools, furniture and fixtures

70

70

Accumulated depreciation

(55)

(58)

Vehicles, tools, furniture and fixtures, net

14

11

Land

22

22

Construction in progress

3,065

3,939

Total property, plant and equipment

7,083

11,917

Other

586

814

Total intangible assets

586

814

1,454

1,088

Claims provable in bankruptcy, claims provable inrehabilitation and other

89

83

Other

331

538

Intangible assets

Investments and other assets
Investment securities

Allowance for doubtful accounts

(18)

(22)

Total investments and other assets

1,856

1,688

Total non-current assets

9,526

14,419Total assets

27,18429,5488Japan Asia Investment Co., Ltd.
Fund Consolidation(Millions of yen)
As of March 31, 2018

As of December 31, 2018

Liabilities
Current liabilities
Short-term loans payable

2,222

923

Accrued expenses

290

248

Income taxes payable

61

35

Provision for bonuses

51

24

Provision for loss on liquidation of subsidiaries andassociates

－

73

Other

80

57

2,706

1,362

Total current liabilities
Non-current liabilities
Long-term loans payable

16,144

19,882

Deferred tax liabilities

18

26

Net defined benefit liability

112

123

Asset retirement obligations

149

359

Total non-current liabilities

16,424

20,391

Total liabilities

19,131

21,754

Capital stock

5,426

5,426

Capital surplus

3,408

3,408

Retained earnings(2,529)(2,728)Treasury shares

(353)

(353)

Total shareholders' equity

5,951

5,752

Valuation difference on available-for-sale securities

29

42

Foreign currency translation adjustment

522

416

Net assets
Shareholders' equity

Accumulated other comprehensive income

Total accumulated other comprehensive income

551

459

Share acquisition rights

17

20

Non-controlling interests

1,532

1,561

Total net assets

8,053

7,793

Total liabilities and net assets

27,18429,5489Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated Statements of Income(Millions of yen)
For nine months ended
December 31, 2018(from April 1, 2018 to
December 31, 2018)

For nine months ended
December 31, 2017(from April 1, 2017 to
December 31, 2017)
Operating revenue

5,916

1,928

Operating cost

4,588

1,396

Operating gross profit

1,327

531

Selling, general and administrative expenses

1,007

979

320

(448)

Operating profit (loss)
Non-operating income
Interest income

17

13

Dividend income25

17

Foreign exchange gains－

52

Miscellaneous income

78

Total non-operating income

49

92

268

288

Foreign exchange losses

1－

Miscellaneous loss

22

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit (loss)

272

290

98

(647)

Extraordinary income
Gain on sales of non-current assets

0－Gain on redemption of investment securities

－

425

217

－

0

40

217

465

Loss on valuation of investment securities－

4

Loss on redemption of investment securities

80

24

Provision for loss on liquidation of subsidiaries andassociates

－

73

Other

0

0

Subsidy income
Other
Total extraordinary income
Extraordinary losses

Total extraordinary losses

81

102

Profit (loss) before income taxes

234

(284)

Income taxes - current

13

12

Total income taxes

13

12

Profit (loss)

221

(296)

Loss attributable to non-controlling interests

(84)

(97)

Profit (loss) attributable to owners of parent

306

(199)

10

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income(Millions of yen)
For nine ended
December 31, 2018(from April 1, 2018
to December 31, 2018)

For nine ended
December 31, 2017(from April 1, 2017
to December 31, 2017)
Profit (loss)

221

(296)

Other comprehensive income
Valuation difference on available-for-sale securities

(190)

25

8

－

Foreign currency translation adjustment

117

(137)

Share of other comprehensive income of entities
accounted for using equity method

(134)

(3)

Total other comprehensive income

(198)

(115)

22

(412)

Comprehensive income attributable to owners of parent

189

(291)

Comprehensive income attributable to non-controllinginterests

(167)

(121)

Deferred gains or losses on hedges

Comprehensive income
Comprehensive income attributable to11

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Cash Flows(Millions of yen)
For nine ended
December 31, 2018(from April 1, 2018
to December 31, 2018)

For nine ended
December 31, 2017(from April 1, 2017
to December 31, 2017)
Cash flows from operating activities
Profit (loss) before income taxes

234

Depreciation

(284)

6

12

Increase (decrease) in allowance for investment loss

(24)

(258)

Increase (decrease) in allowance for doubtful accounts

6

(37)

(13)

(27)

Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability

611Interest and dividend income

(28)

(20)

Interest expenses

168

139

Loss (gain) on redemption of investment securities

80

(400)

Loss on valuation of operational investment securities

293

371

Decrease (increase) in investment securities for sale

(851)

45

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

24

8

Payment for purchase of investment funds(1,900)(260)

Dividends from investment funds

1,718

1,437

19

99

Other, net

81

(23)

Subtotal

(179)

812

28

20

Interest expenses paid

(211)

(176)

Income taxes paid

(20)

(14)

201
(180)

352
994

(4)

(47)

Purchase of investment securities

(7)

(15)

Proceeds from redemption of investment securities

219

696

Other, net

(10)

70

Net cash provided by (used in) investing activities

197

703

(2,173)(2,170)

Increase (decrease) in investment funds of minority
interest

Interest and dividend income received

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 loans payable
Other, net

0(3)(2,173)(2,173)2(17)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(2,155)
4,815

(491)
4,757

Cash and cash equivalents at end of period

2,659

4,265

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents

12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(Change in accounting policy)(Application of “Practical Solution on Transactions Granting Employees and Others Stock Acquisition Rights,
which Involve Considerations, with Vesting Conditions, etc.”)
The Company decided to apply “Practical Solution on Transactions Granting Employees and Others Stock
Acquisition Rights, which Involve Considerations, with Vesting Conditions, etc.” (ASBJ Practical Issues Task
Force (“PITF”) No. 36, issued on January 12, 2018; hereinafter referred to as “PITF No. 36”) from April 1,2018 and to account for transactions granting employees and others stock acquisition rights, which involve
considerations, with vesting conditions in accordance with the “Accounting Standard for Stock Options” (ASBJ
Statement No. 8, issued on December 27, 2005) and related guidance.
However, when applying PITF No. 36, the Company complied with the transitional provisions in Paragraph 10,
Item (3) of PITF No. 36 and continued to account for transactions that granted employees and others stockacquisition rights, which involve considerations, with vesting conditions prior to the date of application of PITF
No. 36 in accordance with the previously adopted accounting procedure.

13

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Third Quarter Ended December 31, 2018
February 14, 2019

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Third Quarter Ended December 31, 2018

(As of December 31, 2018)

Disclosure of consolidated financial statements, etc., under the Previous accounting standards
As of Fiscal year ended June 30, 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, 2018 (April 1, 2018 to December 31, 2018)(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, 2018
For nine months ended
December 31, 2017

1,214

(61.5)

(459)

—

(512)

—

(197)

—

3,154

11.4

458

34.4

334

71.8

240

229.1

Yen

Diluted net income
per shareYen(11.18)

—

13.62

13.59

Net income per share
For nine months ended
December 31, 2018
For nine months ended
December 31, 2017(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen%

As of December 31, 2018

16,646

6,276

37.6

Yen
353.36

As of March 31, 201819,220

6,568

34.1

369.75(Reference) Total shareholders' equity

Equity ratio

Net assets per share

As of December 31, 2018: 6,255 millions of yen As of March 31, 2018: 6,545 millions of yen

14

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2019 (April 1, 2018 to March 31, 2019)
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.
Operating revenues

Operating income

Ordinary income

Millions of yen% change

Millions of yen% change

Millions of yen% change

2,300(57.4)

100(90.2)

0(100.0)For the year ending
March 31, 2019

Profit attributable to ownersof parent
Millions of yen% change
470(46.2)Net income per share
Yen
For the year ending
March 31, 2019

26.55

(Note) Revision of “result forecast consolidated under the Previous Accounting Standard” during the latest disclosure: None
“Result forecast consolidated under the Previous Accounting Standard” had revised on 25 December 2018,
Going forward, we plan to achieve the revised forecast by increasing gains on sale of mega solar projects even if downward risk arises in thegain on sale of shares in 4Q.
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.
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, 2018.

15

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, 2017(from April 1, 2017
to December 31, 2017)

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

For the year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)

3,154

1,214

5,403

Management fees

208

187

277

Contingency fees

86

－

86

1,457

602

3,219

1,339

381

1,612

Income gains

34

10

64

Other operating revenue

27

32

142

Total operating cost (C)

1,773

857

3,074

Cost of securities sold (D)

1,219

272

2,469

534

540

562

Fund interests losses etc.

15

40

36

Other operating cost

4

4

5

Operating gross profit (A) - (C)

1,381

356

2,328

Realized capital gains (B) - (D)

238

330

749

Investment income

(295)

(209)

187

Total operating revenue (A)Proceeds of sales of operational
investment securities (B)Fund interests income etc.

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, 2017

As of December 31, 2018

As of March 31, 2018

Total asset

18,612

16,646

19,220Total liabilities

12,748

10,37012,652

11,954

9,784

11,954

5,864

6,276

6,568

5,839

6,255

6,545

Loans payable
Total net asset
Total shareholders’ equity

16

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of December 31, 2018

AssetsCurrent assets
Cash and deposits

7,308

4,931

Operational investment securities

10,844

11,045

Allowance for possible investment loss

(1,230)(996)

Operating loans

204

204

Other

467

136

Allowance for doubtful accounts
Total current assets

(40)

(0)

17,554

15,321

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

29

Accumulated depreciation

(15)

(15)

Buildings and structures, net

14

13

Vehicles, tools, furniture and fixtures

70

70

Accumulated depreciation

(55)

(58)

Vehicles, tools, furniture and fixtures, net

14

11

Land

22

22

Total property, plant and equipment

51

47

Other

55

94

Total intangible assets

55

94

1,454

1,088

Claims provable in bankruptcy, claims provable inrehabilitation and other

89

83

Other

33

32

Intangible assets

Investments and other assets
Investment securities

Allowance for doubtful accounts

(18)

(22)

Total investments and other assets

1,558

1,182

Total non-current assets

1,665

1,324

Total assets

19,22016,64617

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(Millions of yen)
As of March 31, 2018

As of December 31, 2018

Liabilities
Current liabilities
Short-term loans payable

1,468

504

Accrued expenses

156

63

Income taxes payable

61

35

Provision for bonuses

51

24

Provision for loss on liquidation of subsidiaries andassociates

－

73

Other

297

239

2,035

940

Total current liabilities
Non-current liabilities
Long-term loans payable

10,486

9,279

Deferred tax liabilities

18

26

Net defined benefit liability

112

123

Total non-current liabilities

10,616

9,429

Total liabilities

12,652

10,370

5,426

5,426

Net assets
Shareholders' equity
Capital stock
Capital surplus

3,505

3,505

Retained earnings(2,584)(2,782)

Treasury shares

(353)

(353)

Total shareholders' equity

5,993

5,795

Valuation difference on available-for-sale securities

332

262

Foreign currency translation adjustment

219

197

Total accumulated other comprehensive income

552

459

Subscription rights to shares

17

20

Non-controlling interests

5－

Total net assets

6,568

6,276

Total liabilities and net assets

19,22016,646

Accumulated other comprehensive income18

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(2) Consolidated Statements of Income(Millions of yen)
For nine months ended
December 31, 2018(from April 1, 2018 to
December 31, 2018)

For nine months ended
December 31, 2017(from April 1, 2017 to
December 31, 2017)
Operating revenue

3,154

1,214

Operating cost

1,773

857

Operating gross profit (loss)

1,381

356

Selling, general and administrative expenses
Total selling, general and administrative expenses

922

816

Operating profit (loss)

458

(459)

Interest income

15

11

Dividend income25

17

Foreign exchange gains－

52

Miscellaneous income

77

Total non-operating income

47

89

168

139

1

－

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit (loss)

2

2

171

141

334

(512)

－

4

Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets

0－Gain on redemption of investment securities

－

425

Other

0

－

Total extraordinary income

0429

Extraordinary losses
Loss on valuation of investment securities－

4

Loss on redemption of investment securities

80

24

Provision for loss on liquidation of subsidiaries andassociates

－

73

Other

0

0

Total extraordinary losses

81

102

Profit (loss) before income taxes

253

(185)

Income taxes - current

12

12

Total income taxes

12

12Profit (loss)

240

(197)

Profit (loss) attributable to owners of parent

240

(197)

19