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 Year Ended March 31, 2021
[Japanese Standards](Summary of Japanese announcement)
May 14, 2021
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: https://www.jaic-vc.co.jp/

Tel: +81-3-3221-8518 (main)
Scheduled date for ordinary general meeting of shareholders: June 25, 2021
Scheduled date for submission of annual report: June 28, 2021
Scheduled date for start of payment of dividends: —The additional materials of the Financial Results: Yes
The briefing session of the Financial Results: None *We will distribute a video explaining financial results in Japanese on our
website.

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(1) Consolidated results of operations(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 the year ended
March 31, 2021

3,709

(6.1)

(163)

—

(399)

—

33

(90.3)For the year ended
March 31, 2020

3,950

12.8

716

143.6

441

7,509.0343(40.5)(Note) Comprehensive Income
For the year ended March 31, 2021: 174 millions of yen (71.9)%
For the year ended March 31, 2020: 619 millions of yen 129.5%

For the year ended
March 31, 2021
For the year ended
March 31, 2020

Net income per share

Diluted net income
per share

Return on equity

Ordinary income tototal assets

Yen

Yen

%

%

Operating income
to operating
revenues
%

1.89

1.88

0.5

(1.5)

(4.4)

19.40

19.35

4.9

1.5

18.1

(Reference)Equity in earnings (loss) of affiliates
For the year ended March 31 2021: ― millions of yen
For the year ended March 31 2020: ― millions of yen

1

Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated financial position
Total assets

Net assets

Net assets per share

Equity ratio

Millions of yen

Millions of yen%

Yen

As of March 31, 2021

25,165

9,106

29.1

413.98

As of March 31, 2020

28,548

8,716

25.3

407.79(Reference) Total shareholders' equity;
As of March 31, 2021: 7,328 millions of yen / As of March 31, 2020: 7,219 millions of yen(3) Cash flows
Cash and cash

Cash flow from operating

Cash flow from investing

Cash flow from financing

activities

activities

activities

Millions of yen

Millions of yen

Millions of yen

year-end
Millions of yen

1,728

61

(1,216)

3,301

124

147

(1,617)2,723

For the year ended March
31, 2021
For the year ended March
31, 2020

equivalents at

2. Dividends(Base date)Year ended March
31, 2021
Year ended March
31, 2020
Year ending March
31, 2022 (forecast)End of first quarter
Yen

End of second quarter
Yen

Dividends per share
End of third quarter
Yen

End of year
Yen

Year
Yen

—

0.00

—

0.00

0.00

—

0.00

—

0.00

0.00

—

0.00

—

0.00

0.00

3. Outlook for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
The overall private equity investment business conducted by the Group (including investment partnerships) is significantly affectedby changing factors such as stock markets, given the characteristics of the business. In addition, it has been difficult to forecast
results reasonably in the rapidly changing environment. Therefore we do not disclose the results forecast. For the convenience ofinvestors and shareholders, however, we disclose “result forecast consolidated under the Previous Accounting Standard” eventhough it doesn’t have enough rationality. For details, please refer to “2. Outlook for the fiscal year ending March 31, 2022 (April 1,
2021 to March 31, 2022)” on page 22.
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): None
[New - company (company name: - ) Excluded - company (company name: -)](2) Changes in accounting principles, accounting estimates and correction of prior period errors(i) Changes in accounting principles due to revisions to accounting standards: None(ii) Changes other than shown in (i) above: None(iii) Changes in accounting estimates: None(iv) Correction of prior period errors: None2

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) No. of shares issued and outstanding (common stock)(i) Shares issued and outstanding at the
The year ended Marchend of each period (including treasury
31, 2021:
stock)(ii) Shares of treasury stock at the end of
The year ended Marcheach period
31, 2021:(ii) Average number of shares during the
The year ended March
period31, 2021:

17,884,392
sharesThe year ended March
31, 2020:

17,884,392
shares181,009
shares17,703,383
sharesThe year ended March
31, 2020:
The year ended March
31, 2020:

181,009
shares17,703,383
sharesReference: Non-consolidated results
Business results for the year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(1) Results of operations(Percentages indicate year-on-year increase or decrease)

Operating revenues
Millions of yen% change
For the year ended
March 31, 2021
For the year ended
March 31, 2020

Ordinary income
Millions of yen% change

Net income
Millions of yen% change

2,907

13.4

196

(11.7)

152

63.0

134

(45.8)

2,565

12.9

222

(35.3)

93(61.9)

248(57.8)Net income per share
Yen
For the year ended
March 31, 2021
For the year ended
March 31, 2020

Operating income
Millions of yen% change

Diluted net income
per share
Yen

7.61

7.58

14.04

14.00

(2) Financial position

As of March 31, 2021
As of March 31, 2020

Total assets
Millions of yen
14,254
15,418

Net assets
Millions of yen
7,001
6,901

Equity ratio
%
48.9
44.6

Net assets per shareYen
393.89388.44(Reference) Total shareholders' equity As of March 31, 2021: 6,973 millions of yen / As of March 31, 2020: 6,876 millions of yen*This report is not subject to audit procedures.
*Cautionary Statements with Respect to Forward-looking Statements and Other Notes
The additional materials of the financial results for the year ended March 31, 2021 will be released on our website on May
14, 2021.
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.

3

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 the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)

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

3,950

3,709

134

122

2,768

2,112

1,028

1,450

19

24

Total operating cost

1,956

2,516

Cost of securities sold

1,051

1,199

283

199

617

1,109

Other operating cost

5

7

Operating gross profit

1,993

1,192

Total operating revenue
Management fees
Proceeds of sales of operational
investment securities
Fund interests income and Income
gains etc.
Other operating revenue

Investment write-offs & Provision
for allowance for possible
investment losses
Fund interests losses etc.

(2) Investment income(Millions of yen)
For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)

For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)
Project
investment

Proceeds

of

sales

of

operational

investment securities (A)Cost of securities sold (B)Realized capital gains (A)-(B)Privateequitytotal

investment

Project
investment

Privateequitytotal

investment

1,542

1,226

2,768

689

1,422

2,112

489

561

1,051

501

697

1,199

1,052

664

1,717

188

725

913

―

283

283

―

199

199

1,052

381

1,434

188

525

713

Investment write-offs & Provision forallowance for possible investment losses(C)
Investment income (A)-(B)-(C)4

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Cash flows
For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)(Millions of yen)
For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)

Cash flow from operating activities

124

1,728

Cash flow from investing activities

147

61

Cash flow from financing activities(1,617)(1,216)

Cash and cash equivalents at theend of period

2,723

3,301

(4) Breakdown of total assets
As of March 31, 2020
Amount(B)/(A) (%)(Millions of yen)
As of March 31, 2021
Amount(B)/(A) (%)

Total assets

28,548－25,165－

Cash and deposits

4,520

－

6,486

－

Property, plant and equipment

12,119

－

7,852

－

9,848

－

9,379

－

(1,574)16.0(1,349)

14.4

Operational Investment Securities(A)
Allowance for Possible
Investment Loss (B)(5) Breakdown of loans payable(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Total of loans payable and bonds

17,334

14,990Loans payable;
Non-consolidated base

8,166

6,950

Loans payable by project financeand bonds;
Consolidated projects

9,167

8,039

5

Japan Asia Investment Co., Ltd.
Fund Consolidation

2. Business Position(1) Investment activities (JAIC+Funds)i) Breakdown of new investment and new loan
For the year ended
March 31, 2020
(from April 1, 2019 toMarch 31, 2020)
Number ofAmountcompanies(Millions of yen)

For the year ended
March 31, 2021
(from April 1, 2020 toMarch 31, 2021)
Number ofAmountcompanies(Millions of yen)

1) Area
Project investment (Japan)

11

2,240

14

1,445

Private equity investment subtotal

12

1,224

5

322

Japan

12

1,224

5

322

China, Hong Kong, Taiwan etc.

-

-

-

-

11

2,240

14

1,445

Renewable energy

5

1,017

4

246

Healthcare

2

290

5

452

Smart agriculture

1

260

1

530

Distribution center

2

373

4

217

Other

1

300

-

-

12

1,224

5

322

Strategic investment

5

632

2

214

Financial investment

7

591

3

107

23

3,464

19

1,767

2) Investment program
Project oriented investment subtotal

Private equity investment subtotal

Total

Note 1 Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed from thecurrent fiscal year under review to include loans extended to the projects (excluding distressed receivables) in the scope of
aggregation. As a result of this change, new investments and loans in the previous fiscal year increased by 90 million yen in one
project.
Note 2 Based on the Medium-term Management Plan (from FY Mar. 2022 to FY Mar. 2024) announced on December 28, 2020, thepresentation by type has been changed from the current fiscal year under review. Due to this change, the figures for the previous
fiscal year have also been reclassified.
Note 3 Strategic investment is investment in partner companies in the projects for which the JAIC Group makes investment orprovides loans. Financial investment is investment in companies other than strategic investment.

6

Japan Asia Investment Co., Ltd.
Fund Consolidationii) Balance of investment and loan
For the year ended
March 31, 2020
(from April 1, 2019 toMarch 31, 2020)
Number ofAmountcompanies(Millions of yen)

For the year ended
March 31, 2021
(from April 1, 2020 toMarch 31, 2021)
Number ofAmountcompanies(Millions of yen)

1) Area
Project investment (Japan)

33

6,786

33

6,088

Private equity investment subtotal

98

8,405

88

6,767

Japan

52

3,815

48

3,652

China, Hong Kong, Taiwan etc.

46

4,589

40

3,115

33

6,786

33

6,088

Renewable energy

27

5,714

21

3,999

Healthcare

2

289

6

738

Smart agriculture

1

109

1

532

Distribution center

2

373

4

540

Other

1

300

1

277

98

8,405

88

6,767

Strategic investment

6

1,005

6

1,155

Financial investment

92

7,399

82

5,612

131

15,191

121

12,8552) Investment program
Project oriented investment subtotal

Private equity investment subtotal

Total

Note 1 Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed from thecurrent fiscal year under review to include loans extended to the projects (excluding distressed receivables) in the scope of
aggregation. As a result of this change, the balance of investments and loans in the previous fiscal year increased by 89 million yen
in one project.
Note 2 Based on the Medium-term Management Plan (from FY Mar. 2022 to FY Mar. 2024) announced on December 28, 2020, thepresentation by type has been changed from the current fiscal year under review. Due to this change, the figures for the previous
fiscal year have also been reclassified.
Note 3 Strategic investment is investment in partner companies in the projects for which the JAIC Group makes investment orprovides loans. Financial investment is investment in companies other than strategic investment.

7

Japan Asia Investment Co., Ltd.
Fund Consolidation(2)JAIC-Backed IPOs (JAIC+Funds)i) Number of IPOs
For the year ended
For the year ended
March 31, 2020
March 31, 2021
(from April 1, 2019(from April 1, 2020
to March 31, 2020)
to March 31, 2021)
Number of IPOs (total of Japan & overseas)
4 companies
2 companies
First price multiple (average of Japan & overseas)
5.2 times
2.3 times
Note: First price multiple = Market value of shares held by the Group calculated at first price/Total our acquisition cost.
We do not include listed shares those we acquired by equity swaps when we calculate the first price multiple.
ii) JAIC-Backed IPOs
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Company
Date ofMarketBusiness
Name
IPO
Research, development, manufactureand sales of pharmaceuticals andmedical devices that promote
StemRIM
regeneration of damaged tissues by
9-Aug-19
TSE Mothers
activating and utilizing patient’s own
stem cells in the body, and genetherapy products for intractablediseases'"Secure Cloud Systems Business"
which provides an enterprise's Core
Systems as cloud computing
PBsystems, Inc.
12-Sep-19
FSE Q-Board
systems, and "Emotional Systems
Business" which manufactures andsells VR-theater "4D king"Operator of "房多多", china's largest
NASDAQ
Fangdd Network Group Ltd.
1-Nov-19
online real estate marketplace
GlobalConsulting for Judo therapy
establishments，Insurance agency，Ligua Inc.
13-Mar-20
TSE Mothers
Financial adviser and Independent
contractor management
For the year ended March 31, 2021 (April 1, 2020 to March 31, 2021)
Company
Date ofMarketBusiness
Name
IPO
Research and development of
FunPep Company Limited
25-Dec-20
TSE Mothers pharmaceuticals based on functional
peptidesResearch and development of
HGF (hepatocyte growth
Kringle Pharma, Inc.
28-Dec-20
TSE Mothers
factor) protein as a therapeutic agent
for intractable diseases

8

Headquarters

Japan

Japan

China
Japan

Head
quarters
Japan

Japan

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Management of Investment Funds (Funds for which JAIC and its Group are responsible formanagement and provision of essential information)i) Balance of funds under management
As of March 31, 2020
Net asset valueof investment
funds

Commitment
Number of funds

As of March 31, 2021

amount ofinvestment funds

Commitment
Number of funds(Millions of yen) (Millions of yen)amount of

Net asset valueof investment
funds

investment funds(Millions of yen) (Millions of yen)

During operation period

5

8,236

3,874

4

6,510

2,720

Maturity is being extended

6

9,153

3,989

4

6,913

2,279

―

―

―

3

3,026

1,053

7,864

11

During liquidation
procedure
Total(Total commitment amount11of JAIC group)

17,390(5,163)

16,450(5,434)

6,053

Note: 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 the current fiscal year under review.

ii) Funds during operation period (as of March 31, 2021)
Name of fund

Inception

Total commitment
amount(Millions of yen)

Maturity

Features
Secondary investment fund targeting

JAIC

VentureCapitalInvestment L.P.

Feb. 2016

Feb. 2026

2,000

mainly venture companies in Japan.
Domestic leading financial institution
invested in this fund.
General partner of the Fund is a joint
venture between JAIC and Aozora Bank,

Succession

Investment

Limited Partnership, I

Jun. 2017

Jun. 2027

3,000

Ltd.. an affiliated company not covered by
the equity method.
Supporting the business succession needs of
SMEs in Japan.

JAIC-Solar Fund, L.P.,II

Mar. 2020

Dec. 2039

1,359

Investment target of the Fund is mega solar
projects in operation.
JAIC and Asian Market Planning Co., Ltd.

Hokkaido SME Global
Fund, L.P.

jointly manage the Fund as Co-GP.
Apr. 2020

Dec. 2026

151

Investing in SMEs in Hokkaido that operateor aim to operate in oversea market and that
promote business to meet inbound demand

Notes:
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.

9Japan Asia Investment Co., Ltd.
Fund Consolidation
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

4,520

6,486

Operational investment securities

9,848

9,379

(1,574)(1,349)Allowance for possible investment loss
Operating loans

204

204

Other

767

355

13,767

15,075

Buildings and structures

29

211

Accumulated depreciation

(17)

(9)

Buildings and structures, net

12

201

8,826

7,968

Total current assets
Non-current assets
Property, plant and equipment

Machinery and equipment
Accumulated depreciation

(373)

(514)

Machinery and equipment, net

8,452

7,453

Vehicles, tools, furniture and fixtures

71

55

Accumulated depreciation

(63)

(38)

Vehicles, tools, furniture and fixtures, net

7

16

Land

87

46

Construction in progress

3,559

133

Total property, plant and equipment

12,119

7,852

1,491

1,210

Intangible assets
Power production facilities concessions
Other

228

246

1,719

1,456

Investment securities

386

365

Distressed receivables

64

49

Other

509

377

Allowance for doubtful accounts

(18)

(12)

Total intangible assets
Investments and other assets

941

780

Total non-current assets

Total investments and other assets

14,78010,089Total assets

28,54825,16510

Japan Asia Investment Co., Ltd.
Fund Consolidation(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Short-term borrowings

1,403

Current portion of bonds payable

919

540

6

1,756

389

Income taxes payable

80

39

Provision for bonuses

64

49

Other

31

30

3,876

1,434

－

185

Long-term borrowings

15,39013,879Deferred tax liabilities

10

19

Accrued expenses

Total current liabilities
Non-current liabilities
Bonds payable

Retirement benefit liability

123

137

Asset retirement obligations

431

403

Total non-current liabilities

15,955

14,624

Total liabilities

19,832

16,059Net assets
Shareholders' equity
Share capital

5,426

5,426

Capital surplus

3,408

3,515

Retained earnings(1,608)(1,575)

Treasury shares

(353)
6,871

7,012

Valuation difference on available-for-sale securities

194

124

Foreign currency translation adjustment

152

191

Total accumulated other comprehensive income

347

316

Share acquisition rights

25

27

Total shareholders' equity(353)

Accumulated other comprehensive income

Non-controlling interests

1,472

1,749

Total net assets

8,716

9,106

Total liabilities and net assets

28,54825,16511

Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated Statements of Income

Operating revenue

For the year ended
March 31, 2020
(April 1, 2019 to March 31,
2020)
3,950

(Millions of yen)
For the year ended
March 31, 2021
(April 1, 2020 to March 31,
2021)
3,709

Operating costs

1,956

2,516

Operating gross profit

1,993

1,192

150

158

Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances

238

244

Taxes and dues

155

152

Fund interests expenses

245

308

Other

488

491

1,277

1,355

716

(163)

Interest income

98Dividend income

42Foreign exchange gains

2

26

Gain on investments in investment partnerships

6

43

Outsourcing service income

3

4

Rental income from facilities

3

3

Total selling, general and administrative expenses
Operating profit (loss)
Non-operating income

Miscellaneous income

2

3

Total non-operating income

32

91

305

328

Non-operating expenses
Interest expenses
Miscellaneous losses

2

0

307

328

441

(399)

Gain on sale of non-current assets

6622

Gain on sale of investment securities

173

4

8

10

189

637

Total non-operating expenses
Ordinary profit (loss)
Extraordinary income

Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities－

25

Loss on redemption of investment securities

2

0

Other

－

2

Total extraordinary losses

229Profit before income taxes

628

208

Income taxes - current

23

16

Total income taxes

23

16

Profit604

191

Profit attributable to non-controlling interests

261

158

Profit attributable to owners of parent

343

33

12

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income
For the year ended
March 31, 2020
(April 1, 2019 to March 31,
2020)(Millions of yen)
For the year ended
March 31, 2021
(April 1, 2020 to March 31,
2021)

604

191

Valuation difference on available-for-sale securities

(122)

96

Foreign currency translation adjustment

(47)

40

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

185

(154)

Total other comprehensive income

15

(17)

619

174

Comprehensive income attributable to owners ofparent423

2

Comprehensive income attributable to non-controllinginterests

197

171

ProfitOther comprehensive income

Comprehensive income
Comprehensive income attributable to13

Japan Asia Investment Co., Ltd.
Fund Consolidation（4）Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)

Shareholders' equity

Balance at beginning of period

Share capital

Capital surplus

5,426

3,408

Retainedearnings(1,952)

Treasury shares

Total
shareholders'equity

(353)

6,528

Changes during period
Profit attributable to owners ofparent343

343

Change in ownership interest ofparent due to transactions with
non-controlling interests－

Net changes in items other thanshareholders' equity
Total changes during period

Balance at end of period

－

－

343

－

343

5,426

3,408

(1,608)

(353)

6,871

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

71

195

267

21

Non-controlling
Total net assetsinterests

1,583

8,400

Changes during period
Profit attributable to owners ofparent343

Change in ownership interest ofparent due to transactions with
non-controlling interests－

Net changes in items other thanshareholders' equity

122

(43)

79

3

(110)

(27)

Total changes during period

122

(43)

79

3

(110)

315

Balance at end of period

194

152

347

25

1,472

8,716

14

Japan Asia Investment Co., Ltd.
Fund Consolidation
For the year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)

Shareholders' equity

Balance at beginning of period

Share capital

Capital surplus

5,426

3,408

Retainedearnings(1,608)Treasury shares

Total
shareholders'equity

(353)

6,871

Changes during period
Profit attributable to owners ofparent33

Change in ownership interest ofparent due to transactions with
non-controlling interests

33

107

107

Net changes in items other thanshareholders' equity
Total changes during period

Balance at end of period

－

107

33

－

140

5,426

3,515

(1,575)

(353)

7,012

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

194

152

347

25

Non-controlling
Total net assetsinterests

1,472

8,716

Changes during period
Profit attributable to owners ofparent33

Change in ownership interest ofparent due to transactions with
non-controlling interests

107

Net changes in items other thanshareholders' equity

(69)

38

(30)

2

277

249

Total changes during period

(69)

38

(30)

2

277

389

Balance at end of period

124

191

316

27

1,749

9,106

15

Japan Asia Investment Co., Ltd.
Fund Consolidation(5) Consolidated Statements of Cash Flows
For the year ended
March 31, 2020
(April 1, 2019 to March 31,
2020)(Millions of yen)
For the year ended
March 31, 2021
(April 1, 2020 to March 31,
2021)

Cash flows from operating activities
Profit before income taxes

628

208

Depreciation

15

29

Increase (decrease) in allowance for investment loss

73

(332)

Increase (decrease) in allowance for doubtful accounts

(6)

(6)

Increase (decrease) in provision for bonuses

1

(15)

Increase (decrease) in retirement benefit liability

713Interest and dividend income

(8)

(7)

Interest expenses

153

129

Loss (gain) on investments in investment partnerships

(6)

(43)

Loss (gain) on sale of investment securities

(173)

(4)

Loss (gain) on redemption of investment securities

2(8)

Loss (gain) on sale of shares of subsidiaries andassociates(4)－

Loss on valuation of operational investment securities

49－

Decrease (increase) in investment securities for sale

(1,446)173

Decrease (increase) in operating loans receivable

(89)

(149)

18

15

Payment for purchase of investment funds

Decrease (increase) in distressed receivables(1,590)(1,284)

Dividends from investment funds

2,954

3,171

Increase (decrease) in investment funds of minority
interest

(302)

(46)

Other, net

9

(102)

Subtotal

285

1,738

8

7

Interest paid

(159)

(134)

Income taxes paid

(44)

(24)

Income taxes refund

34

142

Net cash provided by (used in) operating activities

124

1,728

Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment

(0)

(48)

(123)

(29)

Purchase of investment securities

(2)

(2)

Proceeds from sale of investment securities

215

46

Purchase of intangible assets

Proceeds from redemption of investment securities

62

38

Other, net

(4)

57

Net cash provided by (used in) investing activities

147

61

(1,617)(1,216)

Cash flows from financing activities
Repayments of long-term borrowings
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents(0)－(1,617)(1,216)(12)

3

Net increase (decrease) in cash and cash equivalents(1,358)577

Cash and cash equivalents at beginning of period

4,082

2,723

Cash and cash equivalents at end of period

2,723

3,301

16

Japan Asia Investment Co., Ltd.
Fund Consolidation(6) Notes to Consolidated Financial Statements(Notice Concerning Notes on Matters Regarding the Assumption of Going Concern)
No applicable items(Additional Information)
COVID-19 has a widespread impact on the economy and business activities. However, the impact on the Grouphas been limited since the end of the previous consolidated fiscal year. We make accounting estimates ofinvestment valuations based on the assumption that the impact of this infectious disease on the economy andcorporate activities will be new normal.
(Segment Information)
Segment information is not provided as the Group has single segment; Investment business.

(Per-share Data)
For the year ended March 31, 2020
(April 1, 2019, to March 31, 2020)¥407.79¥19.40¥19.35For the year ended March 31, 2021
(April 1, 2020, to March 31, 2021)¥413.98
¥1.89
¥1.88

Net assets per share
Net income per share
Diluted net income per share
Note:
The basis for the calculation of net income per share and diluted net income per share is as follows.
For the year ended March 31, 2020
For the year ended March 31, 2021
(April 1, 2020 to March 31, 2021)(April 1, 2019 to March 31, 2020)
Net income per share
Net income attributable to343
33
owners of parent(Millions of yen)Amount not attributable tocommon shareholders－－(Millions of yen)
Net income attributable toowners of parent relating to343
33
common stock (Millions of yen)
Average no. of shares
outstanding during the term
17,703
17,703(Thousands)
Diluted net income per share
Adjustment of net income
attributable to owners of parent－－(Millions of yen)
Increase in common stock49
61(Thousands)
Share acquisition rights
49
61
Latent shares not included indiluted net income per share－－calculation due to lack ofdilution effect(Important Subsequent Events)
No applicable items

17

Japan Asia Investment Co., Ltd.
Non-Consolidation
4. Non-consolidated Financial Statements(1) Balance Sheets(Millions of yen)
As of March 31,2020

As of March 31,2021

AssetsCurrent assets
Cash and deposits

3,506

3,277

Operational investment securities

11,696

10,426

Allowance for possible investment loss

(1,092)(843)

Operating loans

294

444

Accounts receivable - other

147

72

Other

45

89

14,597

13,466

Buildings

1233

Tools, furniture and fixtures4

12

Total current assets
Non-current assets
Property, plant and equipment

Land

9

0

Total property, plant and equipment

26

46

Other

13

15

Total intangible assets

13

15Intangible assets

Investments and other assets
Investment securities

246

266

Shares of subsidiaries and associates

373

333

Distressed receivables

64

49

Other

113

90

Allowance for doubtful accounts

(18)

(12)

Total investments and other assets

780

726

820

788

15,41814,254

Total non-current assets
Total assets

18Japan Asia Investment Co., Ltd.
Non-Consolidation(Millions of yen)
As of March 31,2020

As of March 31,2021

Liabilities
Current liabilities
Current portion of long-term borrowings

513

507

Accrued expenses

62

51

Income taxes payable

69

35

Provision for bonuses

58

43

Other

24

15

Total current liabilities

729

654

7,653

6,442

Provision for retirement benefits

123

137

Deferred tax liabilities

10

19

Total non-current liabilities

7,787

6,599

Total liabilities

8,516

7,253

5,426

5,426

Legal capital surplus

1,426

1,426

Other capital surplus

2,081

2,081

Total capital surplus

3,507

3,507

Retained earnings brought forward(2,066)(1,932)

Total retained earnings(2,066)(1,932)

Treasury shares

(353)

(353)

Total shareholders' equity

6,513

6,647

Valuation difference on available-for-sale securities

363

325

Total valuation and translation adjustments

363

325

Share acquisition rights

25

27

6,901

7,001

15,41814,254Non-current liabilities
Long-term borrowings

Net assets
Shareholders' equity
Share capital
Capital surplus

Retained earnings
Other retained earnings

Valuation and translation adjustments

Total net assets
Total liabilities and net assets

19

Japan Asia Investment Co., Ltd.
Non-Consolidation(2) Statements of Income(Millions of yen)

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

For year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)
Operating revenue

2,565

2,907

Operating costs

1,393

1,783

Operating gross profit

1,171

1,124

Selling, general and administrative expenses

949

928

Operating profit

222

196

Interest income

33

Dividend income

42Foreign exchange gains

126

Non-operating income

Gain on investments in investment partnerships

6

43

Outsourcing service income

3

4

Rental income from facilities

4

4

Miscellaneous income

00

Total non-operating income

2484Interest expenses

153

129

Total non-operating expenses

153

129

93

152

Gain on sale of non-current assets

63Gain on sale of investment securities

173

4

Gain on redemption of investment securities－

8

Non-operating expenses

Ordinary profit
Extraordinary income

Other
Total extraordinary income

0

－

180

16

Extraordinary losses
Loss on valuation of investment securities－

25

Loss on redemption of investment securities

20

Loss on valuation of shares of subsidiaries andassociates

13－

Loss on liquidation of subsidiaries and associates

3

－

Other

0

2

Total extraordinary losses

19

29

Profit before income taxes

253

139

Income taxes - current

5

4

Total income taxes

5

4

248

134

Profit20

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Year Ended March 31, 2021
May 14, 2021

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Year Ended March 31, 2021

(As of March 31, 2021)

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

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(1) Consolidated results of operations(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

For the year ended
March 31, 2021
For the year ended
March 31, 2020

3,089

11.9

214

(19.2)

173

23.5

144

(52.1)

2,760

11.5

265

49.6

140

67.9

302

(47.7)

Yen

Diluted net income
per share
Yen

8.18

8.15

2.0

1.1

6.9

17.09

17.04

4.3

0.9

9.6

Net income per share
For the year ended
March 31, 2021
For the year ended
March 31, 2020

Profit attributable toowners of parent
Millions of yen % change％

Ordinary income tototal assets％

Operating income tooperating revenues％

Return on equity(2) Consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

As of March 31, 2021

14,657

As of March 31, 2020

15,800(Reference) Total shareholders' equity

Equity ratio%

Net assets per share
Yen

7,366

50.1

414.50

7,248

45.7

408.06

As of March 31, 2021:7,338 millions of yen / As of March 31, 2020: 7,223 millions of yen

21

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
The private equity investment business conducted by the Group will be significantly affected by changing factors such as stock markets,given the characteristics of the business. In addition, it has been difficult to forecast results reasonably in the rapidly changing environment.
For the convenience of investors and shareholders, however, we disclose “result forecast consolidated under the Previous AccountingStandard” even though it doesn’t have enough rationality.
(Percentages indicate changes from the corresponding period of the previous fiscal year)
Operating revenue
For six months ending
September 30, 2021
For the year ending
March 31, 2022

Operating income

Ordinary income

Profit attributable to ownersof parent
Millions of yen% change

Millions of yen% change

Millions of yen% change

Millions of yen% change

700

29.4

(220)

－

(250)

－

(250)

－

2,950

(4.5)

510

137.8

430

147.2

340

134.8

Net income per share
Yen
For six months ending
September 30, 2021
For the year ending
March 31, 2022

(14.12)
19.21

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 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 by the number of shares issued and outstanding excluding the number of shares oftreasury stock as at March 31, 2021.

22

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
3. Business Performance and Financial Condition(1) Breakdown of operating revenue and operating cost
For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)
Total operating revenue(Millions of yen)
For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)

2,760

3,089

199

169

2,349

2,221

172

648

40

49

Total operating cost

1,401

1,788

Cost of securities sold

965

1,249

245

194

184

336

Other operating cost

5

7

Operating gross profit

1,359

1,301

Management fees
Proceeds of sales of operational
investment securities
Fund interests income and Income
gains etc.
Other operating revenue

Investment write-offs & Provision
for allowance for possible
investment losses
Fund interests losses etc.

(2) Investment income(Millions of yen)
For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)

For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)
Project
investment

Proceeds

of

sales

of

operational

investment securities (A)Cost of securities sold (B)Realized capital gains (A)-(B)Privatetotal

equityinvestment

Project
investment

Privateequitytotal

investment

1,542

806

2,349

880

1,341

2,221

489

476

965

587

662

1,249

1,052

330

1,383

293

678

972

―

245

245

―

194

194

1,052

85

1,137

293

484

777

Investment write-offs & Provision forallowance for possible investment losses(C)
Investment income (A)-(B)-(C)23

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(3) Asset, Liability and Net asset(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Total asset

15,80014,657

Total liabilities

8,551

7,291

8,166

6,950

7,248

7,366

7,223

7,338

Loans payable
Total net asset
Total shareholders’ equity(4) Result forecast consolidated under the Previous Accounting Standard
The private equity investment business conducted by the Group will be significantly affected by changing factors such as stock markets,given the characteristics of the business. In addition, it has been difficult to forecast results reasonably in the rapidly changing environment.
For the convenience of investors and shareholders, however, we disclose “result forecast consolidated under the Previous AccountingStandard” even though it doesn’t have enough rationality.
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 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.
Assumptions used in the “result forecast consolidated under the Previous Accounting Standard” are as follows.
(A) Operating revenue
Consolidated operating revenue is expected to be 2,950 million yen. The breakdown is as follows.
Management fees will decrease from the fiscal year ended March 2021 to 120 million yen in line with a decline in assets undermanagement of existing funds. There will be no success fees.
Out of revenues of investment operations, proceeds of sales of operational investment securities will increase from the fiscal year ended
March 2021 to 2,300 million yen as a result of the sale of shares in private equity investment. This will attributable mainly to IPOs in Japanand the sales of unlisted shares in Greater China, and we expected to record 700 million yen for IPOs and 1,600 million yen for unlisted
shares. As for revenues from projects, we expected to record 460 million yen as the gains on the sale of four projects in total including
mega solar, distribution center and other projects as well as revenues from mega solar projects in operation. In addition, we expect to record
70 million yen as consulting fees and income gains.
(B) Operating income
Operating cost is expected to be 1,320 million yen, including cost of securities sold of 960 million yen. As for breakdown, we expect torecord 120 million yen for IPOs and 840 million yen for unlisted shares. Valuation losses and provisions are expected to be 270 million yen,assuming that they will occur at a certain ratio to the investment balance. As for profit from the projects operated by JAIC, fund interests
losses are expected to 70 million yen due to the anticipatory expenses for renewable energy projects and vegetable factories. Other
operating cost will be 20 million yen.
Selling, general and administrative expenses are expected to 1,120 million yen, about the same level as the fiscal year ended March 2021.
As a result, consolidated operating profit is expected to be 510 million yen.
(C) Ordinary income
Non-operating income such as foreign exchange gains will be 30 million yen, and non-operating expenses such as interest expenses will be
110 million yen. As a result, consolidated ordinary profit is expected to be 430 million yen.
(D) Profit attributable to owners of parent
There will be no extraordinary income or loss. Tax expenses are expected to be 90 million yen, and profit attributable to owners of parent is
expected to be 340 million yen.

24

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

3,920

3,699

Operational investment securities

11,72810,457

Allowance for possible investment losse(1,092)(845)

Operating loans

294

444

Other

219

187

15,07013,942

Buildings and structures

29

36

Accumulated depreciation

(17)

(3)

Buildings and structures, net

1233

Vehicles, tools, furniture and fixtures

70

54

Accumulated depreciation

Total current assets
Non-current assets
Property, plant and equipment

(63)

(38)

Vehicles, tools, furniture and fixtures, net

6

15

Land

9

0

Total property, plant and equipment

28

49

Other

213

231

Total intangible assets

213

231

Investment securities

386

365

Distressed receivables

64

49

Intangible assets

Investments and other assets

Other

55

32

Allowance for doubtful accounts

(18)

(12)

Total investments and other assets

488

434

Total non-current assets
Total assets

25

730

715

15,80014,657

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Short-term borrowings

513

507

Accrued expenses

64

57

Income taxes payable

80

39

Provision for bonuses

64

49

Other

40

38

Total current liabilities

764

691

Long-term borrowings

7,653

6,442

Deferred tax liabilities

10

19

Non-current liabilities

Retirement benefit liability

123

137

Total non-current liabilities

7,787

6,599

Total liabilities

8,551

7,291

Share capital

5,426

5,426

Capital surplus

3,505

3,505

Retained earnings(1,703)(1,559)Treasury shares

(353)

(353)

Total shareholders' equity

6,874

7,019

Valuation difference on available-for-sale securities

353

318

Foreign currency translation adjustment(3)0

Total accumulated other comprehensive income

349

318

Share acquisition rights

25

27

Total net assets

7,248

7,366

Total liabilities and net assets

15,80014,657

Net assets
Shareholders' equity

Accumulated other comprehensive income

26

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(2) Consolidated Statements of Income

Operating revenue

For the year ended
March 31, 2020
(April 1, 2019 to March 31,
2020)
2,760

(Millions of yen)
For the year ended
March 31, 2021
(April 1, 2020 to March 31,
2021)
3,089

Operating cost

1,401

1,788

Operating gross profit

1,359

1,301

150

158

Selling, general and administrative expenses
Remuneration for directors(and other officers)
Salaries and allowances

238

244

Operations consignment expenses

121

112

Taxes and dues

154

147

Other

429

424

1,094

1,086

265

214

Interest income

87Dividend income

42Foreign exchange gains

2

26

Gain on investments in investment partnerships

6

43

Outsourcing service income

3

4

Rental income from facilities

3

3

Total selling, general and administrative expenses
Operating profit
Non-operating income

Miscellaneous income

00

Total non-operating income

29

88

153

129

Non-operating expenses
Interest expenses
Miscellaneous loss

0

－

153

129

140

173

Gain on sales of non-current assets

63Gain on sales of investment securities

173

4

－

8

Total non-operating expenses
Ordinary profit
Extraordinary income

Gain on redemption of investment securities
Other

7

－

187

16

－

25

Loss on redemption of investment securities

2

0

Other

－

2

Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities

Total extraordinary losses
Profit before income taxes

2

29

326

161

Income taxes - current

23

16

Total income taxes

23

16

Profit302

144

Profit attributable to owners of parent

302

144

27