Japan Asia Investment Co., Ltd.
Fund Consolidation

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

Consolidated Financial Results
for the Second Quarter Ended September 30, 2021
[Japanese Standards](Summary of Japanese announcement)
November 12, 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 submission of quarterly report: November 12, 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 second quarter ended September 30, 2021 (April 1, 2021 to September 30, 2021)(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 six months ended
September 30, 2021

1,018

(19.0)

(413)

－

(529)

－

(651)

－

For six months ended
September 30, 2020

1,257

(7.1)

(179)

－

(300)

－

(342)

－

(Note) Comprehensive Income
For six months ended September 30, 2021: (640) millions of yen (－%)
For six months ended September 30, 2020: (459) millions of yen (－%)

Yen

Diluted net income
per share
Yen(36.77)－(19.36)－

Net income per share
For six months ended
September 30, 2021
For six months ended
September 30, 2020

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio%

Net assets per share
Yen

As of September 30, 2021

23,743

8,377

28.0

375.67

As of March 31, 2021

25,165

9,106

29.1

413.98(Reference) Total shareholders' equity As of September 30, 2021: 6,650 millions of yen/As of March 31, 2021: 7,328 millions ofyen

1Japan Asia Investment Co., Ltd.
Fund Consolidation

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

End of second quarter
Yen

－

0.00

－

0.00

Dividends per share
End of third quarter
Yen

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, 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 18 in this report, “3. Business Performance and Financial Condition (4) Result forecast
consolidated under the Previous Accounting Standard” on page 24 in “Consolidated Financial Results for the Year Ended March 31,
2021 [Japanese Standards]” disclosed on May 14, 2021 and “Differences between the “Result Forecast Consolidated under thePrevious Accounting Standard” and the Results for the First Half of the Fiscal Year Mar. 2022” disclosed on November 12, 2021.
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) 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
(4) No. of shares issued and outstanding (common stock)(i) Shares issued and outstanding at
Six months ended Se
the end of each period (including
ptember 30,2021:
treasury stock)(ii) Shares of treasury stock at theSix months ended Se
end of each period
ptember 30,2021:(ii) Average number of shares
Six months ended Se
during the period (cumulative
ptember 30,2021:
quarterly consolidated period)

17,884,392
shares181,009
shares17,703,383
sharesYear ended March
31, 2021:
Year ended
31, 2021:

17,884,392
sharesMarch

181,009
sharesSix months ended
September 30,2021:

17,703,383
shares*The above quarterly financial results are not subject to a quarterly review required under the Financial Instruments andExchange Act.
*Cautionary Statements with Respect to Forward-looking Statements and Other Notes
The additional materials of the financial results for the the second quarter ended September 30, 2021 will be released on
our website on November 12, 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 certain2

Japan Asia Investment Co., Ltd.
Fund Consolidation

assumptions. The achievement is not promised. Various factors could cause actual results to differ materially from theseresult forecasts. 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 andcertain assumptions. The achievement is not promised. Various factors could cause actual results to differ materially fromthese result forecasts. For details, please refer to “2. Outlook for the fiscal year ending March 31, 2022 (April 1, 2021 toMarch 31, 2022)” on page 18 in this report, “3. Business Performance and Financial Condition (4) Result forecast
consolidated under the Previous Accounting Standard” on page 24 in “Consolidated Financial Results for the Year Ended
March 31, 2021 [Japanese Standards]” disclosed on May 14, 2021 and “Differences between the “Result Forecast
Consolidated under the Previous Accounting Standard” and the Results for the First Half of the Fiscal Year Mar. 2022”
disclosed on November 12, 2021.

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 six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)
Total operating revenue

For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)

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

1,257

1,018

3,709

58

59

122

253

213

2,112

932

730

1,450

Other operating revenue

13

14

24

Total operating cost

724

724

2,516

Cost of securities sold

94

168

1,199

(57)

152

199

683

398

1,109

Other operating cost

3

4

7

Operating gross profit

533

293

1,192

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

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

(2) Cash flows

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)(Millions of yen)
For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)

Cash flow from operating activities

326(1,232)

1,728

Cash flow from investing activities

(13)

55

61

Cash flow from financing activities

(697)

(697)

(1,216)

2,326

1,445

3,301

Cash and cash equivalents at the endof period

4Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Breakdown of total assets(Millions of yen)
As of September 30, 2020
Amount(B)/(A)(%)

As of September 30,
2021(B)/(A)
Amount(%)

As of March 31, 2021
Amount(B)/(A)(%)

Total assets

28,250－23,743－25,165－

Cash and deposits

5,103

－

5,035

－

6,486

－

Property, plant and equipment

10,959

－

8,184

－

7,852

－

Operational Investment
Securities (A)

9,789

－

9,070

－

9,379

－

Allowance for Possible
Investment Loss (B)(1,502)

15.3(1,439)15.9(1,349)14.4(4) Breakdown of Loans payable and bonds(Millions of yen）
As of September 30, 2020

As of September 30, 2021

As of March 31, 2021

Total of loans payable and bonds

19,185

14,155

14,990Loans payable;
Non-consolidated base

7,469

6,253

6,950

Loans payable by project financeand bonds ;Consolidated projects

11,715

7,902

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 six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)
AmountNumber of(Millionsofcompaniesyen)

For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)
AmountNumber of(Millionsofcompaniesyen)

For the year ended
March 31, 2021
(from April 1, 2020 toMarch 31, 2021)
AmountNumber of(Millionsofcompanies
yen)1) Area
Project investment (Japan)

8

495

10

932

14

1,445

2

158

5

1,282

5

322

2

158

5

1,282

5

322

-

-

-

-

-

-

8

495

10

932

14

1,445

3

226

4

382

4

246

Healthcare

3

120

3

87

5

452

Smart agriculture

1

80

1

350

1

530

Distribution center

1

68

2

112

4

217

Other

-

-

-

-

-

-

2

158

5

1,282

5

322

1

149

3

359

2

214

1

8

2

922

3

107

10

654

15

2,214

19

1,767

Private equity investment
subtotal
Japan
China, Hong Kong, Taiwan etc.
2) Investment program
Project oriented investment
subtotal
Renewable energy

Private equity investment
subtotal
Strategic investment
Financial investment
Total

Note 1 Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed
from the previous fiscal year 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 for six months ended September 30, 2020 increased by
120 million yen in 3 projects.
Note 2 Based on the Medium-term Management Plan (from FY Mar. 2022 to FY Mar. 2024) announced on December 28,
2020, the presentation by type has been changed from the previous fiscal year. Due to this change, the figures for six
months ended September 30, 2020 have also been reclassified.
Note 3 Strategic investment is investment in partner companies in the projects for which the JAIC Group makes
investment or provides loans. Financial investment is investment in companies other than strategic investment.

6

Japan Asia Investment Co., Ltd.
Fund Consolidationii) Balance of investment and loan
As of September 30, 2020

As of September 30, 2021

As of March 31, 2021

Number ofcompanies

Amount(Millions ofyen)

Number ofcompanies

Amount(Millions of
yen)

34

6,209

37

6,986

33

6,088

95

8,375

87

7,754

88

6,767

51

3,885

48

4,824

48

3,652

44

4,489

39

2,929

40

3,115

34

6,209

37

6,986

33

6,088

26

5,014

21

4,408

21

3,999

Healthcare

4

408

9

825

6

738

Smart agriculture

1

117

1

850

1

532

Distribution center

2

391

5

652

4

540

1

277

1

250

1

277

95

8,375

87

7,754

88

6,767

6

1,155

7

1,483

6

1,155

89

7,220

80

6,270

82

5,612

129

14,585124

14,741

121

12,855

AmountNumber of (Millionsofcompanies
yen)1) Area
Project investment (Japan)
Private equity investment sub
total
Japan
China, Hong Kong, Taiwan
etc.
2) Investment program
Project oriented investment s
ubtotalRenewable energy

Other
Private equity investment sub
total
Strategic investment
Financial investment
Total

Note 1 Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed
from the previous fiscal year 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 as of September 30, 2020 increased by 208
million yen in 3 projects.
Note 2 Based on the Medium-term Management Plan (from FY Mar. 2022 to FY Mar. 2024) announced on December 28,
2020, the presentation by type has been changed from the previous fiscal year. Due to this change, the figures as of
September 30, 2020 have also been reclassified.
Note 3 Strategic investment is investment in partner companies in the projects for which the JAIC Group makes
investment or provides 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

Number of IPOs (totalof Japan & overseas)
First price multiple(average of Japan &overseas)

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)

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

1 company

2 companies－

1.6 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
For six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
Company
Date ofMarketBusiness
Name
IPO
WonderPlanet Inc.
10-Jun-21
TSE Mothers Entertainment Services Business
Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
Date ofCompany
MarketBusiness
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 factor) protein as
Kringle Pharma, Inc.
28-Dec-20
TSE Mothersa therapeutic agent for intractablediseases8

Headquarters
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 September 30, 2020

As of September 30, 2021

As of March 31, 2021

Commitment Net asset
value ofamount of investment
Number of investment
funds
funds
funds

Commitment Net asset
value ofamount of investment
Number of investment
funds
funds
funds

Commitment Net asset
value ofamount of investment
Number of investment
funds
funds
funds

(Millions of (Millions of(Millions of (Millions of(Millions of (Millions of
yen)

yen)

4

6,510

2,720

998

4

6,913

2,279

1,083

3

3,026

1,053

5,826

11

yen)

yen)

5

7,511

3,745

3,021

3

5,805

55

2

2,568

6,478

10

yen)

yen)

6

8,408

3,402

5

8,148

1

1,011

Duringoperation
periodMaturity is
being extended
Duringliquidation
procedure
Total[Totalcommitment
amount12

of

17,567[5,239]15,884[4,716]

16,450[5,434]

6,053

JAIC group]

Note: Since the number of funds in the course of being wound up while possessing investment assets has increased, funds during theliquidation procedure are included in the scope of disclosure from the previous fiscal year.

ii) Funds during operation period (as of September 30, 2021)
Name of fund

Inception

Total commitment
amount(Millions of yen)

Maturity

Features
Secondary investment fund targeting

JAIC Venture Capital
Investment 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 demand9

Japan Asia Investment Co., Ltd.
Fund Consolidation

Name of fund

Inception

Maturity

Total commitment
amount(Millions of

Featuresyen)
Secondary investment fund targeting
mainly venture companies in Japan.

AJC Venture Capital
Investment Limited

Jun. 2021

Jun. 2031

1,001

Partnership

General partner of the Fund is a joint
venture between JAIC and Aozora Bank,
Ltd. an affiliated company not covered by
the equity method.

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.

10Japan Asia Investment Co., Ltd.
Fund Consolidation
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits

6,486

5,035

Operational investment securities

9,379

9,070

Allowance for investment losses(1,349)(1,439)Operating loans

204

204

Other

355

410

15,075

13,281

211

296

Accumulated depreciation

(9)

(16)

Buildings and structures, net

201

280

Machinery and equipment

7,968

7,969

Accumulated depreciation

(514)

(749)

Machinery and equipment, net

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

7,453

7,219

Vehicles, tools, furniture and fixtures

55

57

Accumulated depreciation

(38)

(42)

Vehicles, tools, furniture and fixtures, net

16

14

Land

46

66

Construction in progress

133

602

7,852

8,184

1,210

1,355

246

240

1,456

1,595

Investment securities

365

132

Distressed receivables

49

7

Other

377

548

Allowance for doubtful accounts

(12)

(7)

Total investments and other assets

780

681

Total property, plant and equipment
Intangible assets
Power production facilities concessions
Other
Total intangible assets
Investments and other assets

Total non-current assets

10,08910,461

Total assets

25,16523,74311

Japan Asia Investment Co., Ltd.
Fund Consolidation(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Short-term borrowings
Current portion of bonds payable
Accrued expenses

919

1,084

6

6

389

356

Income taxes payable

39

60

Provision for bonuses

49

37

Other

30

167

1,434

1,713

185

181

Long-term borrowings

13,87912,882

Deferred tax liabilities

19

40

Total current liabilities
Non-current liabilities
Bonds payable

Retirement benefit liability

137

144

Asset retirement obligations

403

403

Total non-current liabilities

14,624

13,652

Total liabilities

16,05915,366

Share capital

5,426

5,426

Capital surplus

3,515

3,515

Net assets
Shareholders' equity

Retained earnings(1,575)(2,241)

Treasury shares

(353)

(353)

Total shareholders' equity

7,012

6,346

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

124

72

Foreign currency translation adjustment

191

231

Total accumulated other comprehensive income

316

304

Share acquisition rights

27

29

Non-controlling interests

1,749

1,697

Total net assets

9,106

8,377

Total liabilities and net assets

25,16523,74312

Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated Statements of Income(Millions of yen)
For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)
Operating revenue

1,257

1,018

Operating costs

724

724

Operating gross profit

533

293

Selling, general and administrative expenses

712

707

Operating loss

(179)

(413)

Interest income

45Dividend income11Foreign exchange gains

13

3

Gain on investments in investment partnerships

26

1

Miscellaneous income

22

Total non-operating income

48

14

169

129

－

0

Non-operating income

Non-operating expenses
Interest expenses
Miscellaneous losses
Total non-operating expenses

169

130

(300)

(529)

Gain on sale of non-current assets

3－Gain on sale of investment securities－

0Gain on redemption of investment securities

8－

Insurance claim income

10

Total extraordinary income

130

Loss on sale and retirement of non-current assets

2－

Loss on valuation of investment securities

－

101

Other

0

－

Ordinary loss
Extraordinary income

Extraordinary losses

Total extraordinary losses
Loss before income taxes

3

101

(290)

(630)

Income taxes - current

94

Total income taxes

9

4

(299)

(634)

Loss
Profit attributable to non-controlling interests
Loss attributable to owners of parent

13

43

16

(342)

(651)

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income(Millions of yen)
For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)
Loss

(299)

(634)

Valuation difference on available-for-sale securities

11

(15)

Foreign currency translation adjustment

(31)

46

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

(140)

(36)

Other comprehensive income

Total other comprehensive income
Comprehensive income

(160)

(5)

(459)

(640)

(498)

(663)

38

22

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

14

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Cash Flows(Millions of yen)
For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)
Cash flows from operating activities
Loss before income taxes

(290)

(630)

19

9

Increase (decrease) in allowance for investment loss

(140)

26

Increase (decrease) in allowance for doubtful accounts

(2)

(4)

Increase (decrease) in provision for bonuses

Depreciation

(25)

(12)

Increase (decrease) in retirement benefit liability

97Interest and dividend income

(4)

(4)

Interest expenses

67

55

Loss (gain) on investments in investment partnerships

(26)

(1)

Loss (gain) on sale of investment securities－(0)

Loss (gain) on valuation of investment securities－

101

Loss on devaluation of operational investment
securities－

29

Decrease (increase) in investment securities for sale

132

(254)

Decrease (increase) in operating loans receivable

(119)

(86)

7

41

Payment for purchase of investment funds

(400)

(961)

Dividends from investment funds

1,089

143

Increase (decrease) in investment funds of noncontrolling interest

(36)

(9)

Decrease (increase) in distressed receivables

Other, net

8390

Subtotal

286(1,159)4

4Interest paid

(93)

(78)

Income taxes paid

(13)

(8)

Income taxes refund

142

8

Net cash provided by (used in) operating activities

326(1,232)(48)－

Proceeds from sale of property, plant and equipment

10－

Purchase of intangible assets

(25)

－

Proceeds from sale of investment securities

4

55

Proceeds from redemption of investment securities

38－

Other, net

7

0

(13)

55

(697)

(697)

－

(0)

(697)

(697)

Effect of exchange rate change on cash and cash
equivalents

(12)

19

Net increase (decrease) in cash and cash equivalents(396)(1,855)Interest and dividends received

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

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

Cash and cash equivalents at beginning of period

2,723

3,301

Cash and cash equivalents at end of period

2,326

1,445

15

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(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition and Its Implementation Guidance)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and other related standards from the beginning of the first quarter of the current fiscal year.
The Company now recognizes revenue when control of promised goods or services is transferred to thecustomer in the amount expected to be received in exchange for those goods or services.
These changes have no impact on the quarterly consolidated financial statements.
(Application of Accounting Standard for Fair Value Measurement and Its Implementation Guidance)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019, hereinafter referred to as the “Fair Value Measurement Accounting Standard”) and other related
standards from the beginning of the first quarter of the current fiscal year.
The Company has decided to apply the new accounting policies set forth by the “Accounting Standard for Fair
Value Measurement” into the future in accordance with the transitional treatment prescribed in Paragraph 19 of
the “Accounting Standard for Fair Value Measurement” and Paragraph 44–2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
As a result, from the beginning of the first quarter of the current fiscal year, of other securities, investments
other than stocks of unlisted investees have been booked on the consolidated balance sheet at fair value, insteadof at acquisition cost. The valuation difference was booked directly in net assets.
(Additional Information)
The assumptions regarding the impact of COVID-19 on the Group have not changed significantly since the endof the previous consolidated fiscal year.

16Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Second Quarter Ended September 30, 2021
November 12, 2021

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Second Quarter Ended September 30, 2021 (As of September 30, 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 Second quarter ended September 30, 2021 (April 1, 2021 to September 30, 2021)(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 six months ended
September 30, 2021
For six months ended
September 30, 2020

381

(29.6)

(496)

－

(538)

－

(643)

－

541

(21.7)

(316)

－

(335)

－

(336)

－

Yen

Diluted net income
per shareYen(36.36)－(18.99)－Net income per share
For six months ended
September 30, 2021
For six months ended
September 30, 2020

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen%

Yen

As of September 30, 2021

13,740

6,669

48.3

375.08

As of March 31, 2021

14,657

7,366

50.1

414.50(Reference) Total shareholders' equity

Equity ratio

Net assets per share

As of September 30, 2021: 6,640 millions of yen, As of March 31, 2021: 7,338 millions of yen

17

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 theconvenience of investors and shareholders, however, we disclose “result forecast consolidated under the Previous Accounting Standard” eventhough it doesn’t have enough rationality.
(Percentages indicate changes from the corresponding period of the previous fiscal year)
Operating revenue
For the year ending
March 31, 2022

Operating income

Ordinary income

Millions of yen% change

Millions of yen% change

Millions of yen% change

2,950

(4.5)

510

137.8

430

147.2

Profit attributable to ownersof parent
Millions of yen% change
340

134.8

Net income per share
Yen
For the year ending
March 31, 2022

19.21

(Note) Revision of dividends forecast during the current quarterly period: None
Net income per share in above chart is calculated by the number of shares issued and outstanding excluding the number of shares of treasury
stock as at September 30, 2021.
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.
For details, please refer to “3. Business Performance and Financial Condition (3) Cautionary Statements with Respect to Forward-looking
Statements such as Consolidated Earnings Forecast under the Previous Accounting Standard” on page 19 in this report, “3. Business
Performance and Financial Condition (4) Result forecast consolidated under the Previous Accounting Standard” on page 24 in “Consolidated
Financial Results for the Year Ended March 31, 2021 [Japanese Standards]” disclosed on May 14, 2021 and “Differences between the“Result Forecast Consolidated under the Previous Accounting Standard” and the Results for the First Half of the Fiscal Year Mar. 2022”
disclosed on November 12, 2021.

18

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 six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)

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

Total operating revenue

541

381

3,089

Management fees

82

81

169

232

176

2,221

198

95

648

Other operating revenue

26

27

49

Total operating cost

313

327

1,788

Cost of securities sold

85

131

1,249

(62)

124

194

285

66

336

Other operating cost

3

4

7

Operating gross profit

227

53

1,301

Proceeds of sales of operational
investment securities
Fund interests income and Income
gains etc.

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

(2) Asset, Liability and Net asset(Millions of yen)
As of September 30, 2020

As of September 30, 2021

As of March 31, 2021

Total asset

14,58013,74014,657

Total liabilities

7,821

7,070

7,291

7,469

6,253

6,950

6,759

6,669

7,366

6,732

6,640

7,338

Loans payable
Total net asset
Total shareholders’ equity(3) Cautionary Statements with Respect to Forward-looking Statements such as Consolidated Earnings Forecast under the Previous
Accounting Standard
There are no revisions on “result forecast consolidated under the Previous Accounting Standard” for the fiscal year ending March 31,
2022 (from April 1, 2021 to March 31, 2022) disclosed on May 14, 2021 in “Consolidated Financial Results for the Year Ended
March 31, 2021 [Japanese Standards] (Summary of Japanese announcement)”.
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.

19

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of September 30, 2021

As of March 31, 2021
AssetsCurrent assets
Cash and deposits

3,699

2,015

Operational investment securities

10,457

11,508

Allowance for investment losses

(845)

(900)

Operating loans

444

530

Other

187

151

13,942

13,305

Buildings and structures

36

36

Accumulated depreciation

(3)

(4)

Buildings and structures, net

33

32

Vehicles, tools, furniture and fixtures

54

55

Accumulated depreciation

(38)

(41)

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

Vehicles, tools, furniture and fixtures, net

15

13

Land

0

0

Total property, plant and equipment

49

45

Other

231

225

Total intangible assets

231

225

365

132

Intangible assets

Investments and other assets
Investment securities
Distressed receivables

49

7

Other

32

31

Allowance for doubtful accounts

(12)

(7)

Total investments and other assets

434

164

Total non-current assets
Total assets

20

715

435

14,657

13,740Japan Asia Investment Co., Ltd.
Previous Accounting Standard(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Short-term borrowings

507

619

Accrued expenses

57

43

Income taxes payable

39

60

Provision for bonuses

49

37

Other

38

491

Total current liabilities

691

1,252

Long-term borrowings

6,442

5,633

Deferred tax liabilities

1940

Non-current liabilities

Retirement benefit liability

137

144

Total non-current liabilities

6,599

5,818

Total liabilities

7,291

7,070

Share capital

5,426

5,426

Capital surplus

3,505

3,505

Retained earnings(1,559)(2,202)

Net assets
Shareholders' equity

Treasury shares

(353)

(353)

Total shareholders' equity

7,019

6,375

318

238

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

025

Total accumulated other comprehensive income

318

264

Share acquisition rights

27

29

Total net assets

7,366

6,669

Total liabilities and net assets

14,657

13,74021Japan Asia Investment Co., Ltd.
Previous Accounting Standard(2) Consolidated Statements of Income(Millions of yen)
For six months ended
September 30, 2021
(from April 1, 2021
to September 30, 2021)

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)
Operating revenue

541

381

Operating cost

313

327

Operating gross profit

227

53

Selling, general and administrative expenses

544

550

Operating loss

(316)

(496)

Interest income

44Dividend income11Foreign exchange gains

13

3

Gain on investments in investment partnerships

26

1

Miscellaneous income

22

Total non-operating income

48

14Interest expenses

67

55

Miscellaneous loss－

0

Non-operating income

Non-operating expenses

Total non-operating expenses

67

55

(335)

(538)

Gain on sales of non-current assets

3－Gain on sales of investment securities－

0Gain on redemption of investment securities

8－

Total extraordinary income

120Loss on sales and retirement of non-current assets

2－

Loss on valuation of investment securities

－

101

Other

0

－

Total extraordinary losses

3

101

Loss before income taxes

(326)

(639)

Income taxes - current

93

Ordinary loss
Extraordinary income

Extraordinary losses

Total income taxes

9

3

Loss

(336)

(643)

Loss attributable to owners of parent

(336)

(643)

22