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 Second Quarter Ended September 30, 2019
[Japanese Standards](Summary of Japanese announcement)
November 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: November 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: Yes(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, 2019 (April 1, 2019 to September 30, 2019)(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, 2019

1,353

13.8

(216)

－

(364)

－

(462)

－

For six months ended
September 30, 2018

1,189

(76.5)

(390)

－

(481)

－

(535)

－

(Note) Comprehensive Income
For six months ended September 30, 2019: (28) millions of yen (－%)
For six months ended September 30, 2018: (560) millions of yen (－%)

Yen

Diluted net income
per shareYen(26.11)－(30.22)－

Net income per share
For six months ended
September 30, 2019
For six months ended
September 30, 2018

(2) Consolidated financial position

As of September 30, 2019
As of March 31, 2019

Total assets

Net assets

Millions of yen
29,372Millions of yen
8,415

Equity ratio

28,845

8,400(Reference) Total shareholders' equity As of September 30, 2019: 6,480 millions of yen
yen

1

Net assets per share
%

Yen

22.1

366.0723.6

383.89As of March 31, 2019: 6,796 millions ofJapan Asia Investment Co., Ltd.
Fund Consolidation

2. Dividends(Base date)Year ended March
31, 2019
Year ending March
31, 2020
Year ending March
31, 2020 (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, 2020 (April 1, 2019 to March 31, 2020)
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 doesn’t have enough rationality. For details, please refer to “2. Outlook for the fiscal year ending March 31, 2020 (April 1,
2019 to March 31, 2020)” on page 16.
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: None(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
the end of each period (including September30,
treasury stock)2019:(ii) Shares of treasury stock at theSix months ended
end of each period
September 30,
2019:(ii) Average number of shares
Six months ended
during the period (cumulative
September
30,
quarterly consolidated period)
2019:17,884,392
shares181,009
shares17,703,383
sharesYear ended March
31, 2019:

17,884,392
sharesMarch

181,009
sharesSix months ended
June 30, 2018

17,703,383
sharesYear ended
31, 2019:*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 second quarter ended September 30, 2019 will be released on our
website by November 20, 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 six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)
Total operating revenue (A)For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)

For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)

1,189

1,353

3,503

83

68

152

209

611

1,897

Fund interests income etc.

885

664

1,419

Other operating revenue

11

9

33

Total operating cost (C)

897

917

1,895

209

397

616

437

200

710

247

318

562

3

2

6

Operating gross profit (A) - (C)

292

435

1,608

Realized capital gains (B) - (D)

0

214

1,281

(436)

14

570

For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)

Management fees
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, 2019(from April 1, 2018
to March 31, 2019)

Cash flow from operating activities

458

(870)

299

Cash flow from investing activities

65

56

1,224

Cash flow from financing activities(1,668)(1,095)(2,173)

3,599

2,161

4,082

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 September 30, 2018
Amount(B)/(A) (%)

As of September 30,
2019
Amount(B)/(A)(%)

As of March 31, 2019
Amount(B)/(A)(%)

Operational Investment Securities
(A)

9,634

-

9,635

-

10,242－

Allowance for Possible
Investment Loss (B)(1,356)

14.1(1,554)16.1(1,538)15.0(4) Breakdown of Loans payable(Millions of yen）
As of September 30, 2018

As of September 30, 2019

As of March 31, 2019

Total of loans payable and bonds

19,817

20,05819,552

Non-consolidated base loans
payable10,288

8,689

9,784

Loans payable of SPC etc.
by project finance and bonds of
SPC etc.

9,528

11,3699,768

4

Japan Asia Investment Co., Ltd.
Fund Consolidation

2.Business Position(1) Investment activities (JAIC+Funds)i) Breakdown of new investment

For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)
AmountNumber ofcompanies (Millions ofyen)or projects

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)
Number ofAmountcompanies or (Millions ofyen)projects

For the year ended
March 31, 2019(from April 1, 2018 toMarch 31, 2019)
Number ofAmountcompanies (Millions ofor projects
yen)

Area
Japan
China, Hong Kong, Taiwan
Southeast Asia
Others

6

1,373

12

1,745

14

3,662

1

86

-

-

1

86

-

-

-

-

-

-

-

-

-

-

1

0

5

1,353

6

920

12

3,612

2

106

6

824

4

136

1

86

2

112

1

86

-

-

1

77

1

0

-

-

1

260

-

-

1

20

1

25

2

50

-

-

1

350

-

-

7

1,459

12

1,745

16

3,749

Industry
Project Oriented Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
OthersTotalii) Balance of investment
As of September 30, 2018

As of September 30, 2019

As of March 31, 2019

Amount(Millions ofyen)

Number ofAmountcompanies or (Millions ofyen)projects

Number ofAmountcompanies (Millions ofor projects
yen)Number ofcompanies
or projects
Area
Japan
China, Hong Kong, Taiwan
Southeast Asia
Others

88

8,590

84

10,044

81

8,485

41

4,643

38

4,333

42

5,164

5

189

5

189

5

189

7

61

6

111

6

111

25

4,672

30

6,418

26

5,514

116

8,812

103

8,260

108

8,437

29

3,540

27

3,194

29

3,540

54

2,380

44

1,985

48

2,119

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

6

518

7

659

6

462

14

1,153

14

911

14

1,173

13

1,219

11

1,508

11

1,141

141

13,485

133

14,678134

13,951Note:
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 six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)-

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)2 companies
2 companies

For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)2 companies
2 companiesii) First price multiple
For six months ended
For six months ended
For the year ended
September 30, 2018
September 30, 2019
March 31, 2019(from April 1, 2018(from April 1, 2019(from April 1, 2018
to September 30, 2018)
to September 30, 2019)
to March 31, 2019)Japan
8.8 times
9.7 times
Overseas
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, 2019 (from April 1, 2018 to March 31, 2019)
Company
Date ofMarketName
IPO

VALUENEX Inc.

MINKABU THE
INFONOID,Inc.

30-Oct-18

19-Mar-19

TSE Mothers

TSE Mothers

Business

Providing ASP licensing services
for big data analytics of patents(TechRadar) and documents(DocRadar), and offering
consulting services utilizing thesetools and unique methodologies

Financial media business andinformational fintech solution
business, utilizing content generating
technology with its proprietary
artificial intelligence and crowd
inputsFor six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)
Company
Date ofMarketBusiness
Name
IPO
Research, development, manufactureand sales of pharmaceuticals andmedical devices that promote
regeneration of damaged tissues by
StemRIM
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"6

Headquarters

Japan

Japan

Head
quarters

Japan

Japan

Japan Asia Investment Co., Ltd.
Fund Consolidation(Reference)
For the period from October 1, 2019 to November 14, 2019.
Company
Date ofMarketName
IPO
NASDAQ
Fangdd Network Group Ltd. 1-Nov-19
GlobalBusiness
Operator of "房多多", china's largest
online real estate marketplace

Headquarters
China(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,
2018

As of September 30,
2019

Total commitment amount in investment
17,329funds (Millions of yen)
[5,584][Total commitment amount of JAIC group]
No. of funds
11
Note: Funds being wound up after their maturity are not included in the data above.

As of March 31, 201915,948[5,131]

16,494[5,344]1010ii) Funds newly established or those commitment amount increased
For six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen )No. of funds-

amountincreased

600
1

For six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen)
No. of funds‐‐

amountincreased‐‐

For the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen)
No. of funds-

amountincreased

2,0001iii) Details of funds newly established or those commitment amount increased
For six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
Date of
Total commitment amountcommitment
Name of fundincreased
Main investment targets
amount(Millions of yen)increased
Succession Investment
Jun 2018
600
SMEs in Japan which has successor problem
Limited Partnership, I
For six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)No applicable items

7

Japan Asia Investment Co., Ltd.
Fund Consolidation
For the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Date of
Total commitment amountcommitment
Name of fundincreased
Main investment targets
amount(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
March 31, 2020
(from April 1, 2019
to March 31, 2020)
Total commitment amount in investment
5,463
funds (Millions of yen)
No. of funds

4

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

For the year ending
March 31, 2022
(from April 1, 2021
to March 31, 2022)

4,985

500

3

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.

8

Japan Asia Investment Co., Ltd.
Fund Consolidation

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits

7,108

5,121

Operational investment securities

10,242

9,635

Allowance for investment losses(1,538)(1,554)

Operating loans

204

204

Other

347

412

Allowance for doubtful accounts(0)－

16,363

13,820

29

29

(16)

(16)

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

13

13

7,207

7,671

Accumulated depreciation

(547)

(771)

Machinery and equipment, net

6,659

6,899

Machinery and equipment

Vehicles, tools, furniture and fixtures

70

71

Accumulated depreciation

(60)

(61)

Vehicles, tools, furniture and fixtures, net

10

9

22

73

Construction in progress

Land

3,949

6,696

Total property, plant and equipment

10,656

13,693

Other

783

790

Total intangible assets

783

790

Investment securities

514

451

Claims provable in bankruptcy, claims provable inrehabilitation and other

82

69

Other

470

566

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(24)

(18)

Total investments and other assets

1,042

1,068

12,481

15,552

28,84529,372

Total non-current assets
Total assets

9Japan Asia Investment Co., Ltd.
Fund Consolidation(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Short-term borrowings

1,250

1,443

Current portion of bonds－

220

Accrued expenses

219

246

Income taxes payable

67

66

Provision for bonuses

62

45

Provision for loss on liquidation of subsidiaries andassociates

63

－

Other

48

28

1,711

2,049

Long-term borrowings

18,302

18,395

Deferred tax liabilities

1223

Retirement benefit liability

116

123

Total current liabilities
Non-current liabilities

Asset retirement obligations

301

364

Total non-current liabilities

18,73318,907

20,444

20,957

Share capital

5,426

5,426

Capital surplus

3,408

3,408

Retained earnings(1,952)(2,414)

Treasury shares

(353)
6,528

(353)
6,066

Valuation difference on available-for-sale securities

71

275

Foreign currency translation adjustment

195

139

Total accumulated other comprehensive income

267

414

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights

21

23

Non-controlling interests

1,583

1,911

Total net assets

8,400

8,415

28,84529,372

Total liabilities and net assets

10Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated Statements of Income(Millions of yen)
For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)

For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)
Operating revenue
Operating cost

1,189

1,353

897

917

Operating gross profit

292

435

Selling, general and administrative expenses

682

652

Operating loss

(390)

(216)

Interest income

123

Dividend income

163Foreign exchange gains

67

2

Gain on investments in investment partnerships－

6

Miscellaneous income

6

2

103

18

Interest expenses

192

164

Miscellaneous loss

2

1

194

165

(481)

(364)

Gain on sales of investment securities

4－

Gain on liquidation of subsidiaries and associates－

3

Gain on sales of shares of subsidiaries and associates－

4

Gain on sales of non-current assets－

5

Insurance claim income

34

0

Other

－

0

Total extraordinary income

39

13

Loss on valuation of investment securities

4－

Loss on redemption of investment securities

0－

Provision for loss on liquidation of subsidiaries andassociates

63

－

Other

0

－

Total extraordinary losses

68－

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary loss
Extraordinary income

Extraordinary losses

Loss before income taxes

(511)

(350)

Income taxes - current

9

11

Total income taxes

9

11

(520)

(362)

14

99

(535)

(462)

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

11

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income
For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)
Loss

(520)

(Millions of yen)
For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)(362)

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

83

420

(119)

(62)

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

(3)

(23)

Total other comprehensive income

(39)

334

(560)

(28)

Comprehensive income attributable to owners of parent

(559)

(315)

Comprehensive income attributable to non-controllinginterests

(0)

288

Foreign currency translation adjustment

Comprehensive income
Comprehensive income attributable to12

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Cash Flows(Millions of yen)
For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)

For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)
Cash flows from operating activities
Loss before income taxes
Depreciation

(511)

(350)

8

7

Increase (decrease) in allowance for investment loss

(237)

9

Increase (decrease) in allowance for doubtful accounts

(41)

(6)

Increase (decrease) in provision for bonuses

(9)

(16)

Increase (decrease) in retirement benefit liability

76Interest and dividend income

(18)

(6)

Interest expenses

94

79

Loss (gain) on redemption of investment securities

0－

Loss on devaluation of operational investment securities

364

49

Decrease (increase) in investment securities for sale

144

(616)

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

8

12

Payment for purchase of investment funds

(257)

(678)

Dividends from investment funds

697

847

Increase (decrease) in investment funds of noncontrolling interest

(13)

(119)

Other, net

(3)

(6)

Subtotal

232

(788)

Interest and dividends received

18

6Interest paid

(131)

(110)

Income taxes paid

(13)

(12)

352
458

34
(870)

－

14

Purchase of intangible assets

(29)

(6)

Purchase of investment securities

(15)

－

Proceeds from sales of investment securities

71－

Proceeds from redemption of investment securities

39

47

Other, net(0)0

Net cash provided by (used in) investing activities

65

56(1,665)(1,095)

Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from sales of property, plant and equipment

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
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13

(3)

(0)

(1,668)(1,095)

(13)

(11)

(1,158)
4,757
3,599

(1,920)
4,082
2,161

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

14

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Second Quarter Ended September 30, 2019
November 14, 2019

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Second Quarter Ended September 30, 2019

(As of September 30, 2019)

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, 2019 (April 1, 2019 to September 30, 2019)(1) Consolidated results of operations (cumulative total)(Percentages indicate year-on-year increase or decrease)

For six months ended
September 30, 2019
For six months ended
September 30, 2018

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

691

(3.5)

(421)

－

(483)

－

(481)

－

716

(71.9)

(465)

－

(460)

－

(534)

－

Yen

Diluted net income
per shareYen(27.22)－(30.18)－Net income per share
For six months ended
September 30, 2019
For six months ended
September 30, 2018

(2) Consolidated financial position

Total assets

Net assets

Millions of yen

Millions of yen%

As of September 30, 201915,761

6,530

41.3

Yen
367.56

As of March 31, 201917,305

6,861

39.5

386.38(Reference) Total shareholders' equity

Equity ratio

Net assets per share

As of September 30, 2019: 6,507 millions of yen, As of March 31, 2019: 6,840 millions of yen

15

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)
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.
(Percentages indicate changes from the corresponding period of the previous fiscal year)
Operating revenue
For the year ending
March 31, 2020

For the year ending
March 31, 2020

Operating income

Ordinary income

Millions of yen% change

Millions of yen% change

Millions of yen% change

3,500

41.4

800

350.9

650

674.8

Profit attributable to ownersof parent
Millions of yen% change500(13.6)Net income per share
Yen
28.24

(Note) Revision of dividends forecast during the current quarterly period: None
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 September 30, 2019.
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.

16

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, 2018(from April 1, 2018
to September 30, 2018)

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)

For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)

Total operating revenue (A)

716

691

2,475

Management fees

129

107

241

196

406

1,746

Fund interests income etc.

367

155

429

Other operating revenue

22

20

57

Total operating cost (C)

638

582

1,188

Cost of securities sold (D)

205

356

554

420

160

579

Fund interests losses etc.

8

61

49

Other operating cost

3

2

6

Operating gross profit (A) - (C)

78

108

1,286

Realized capital gains (B) - (D)

(8)

50

1,192

(429)

(110)

613

Proceeds of sales of operational
investment securities (B)Investment write-offs & Provision
for allowance for possible
investment losses (E)Investment income(B) - (D)-(E)(2) Asset, Liability and Net asset(Millions of yen)
As of September 30, 2018

As of September 30, 2019

As of March 31, 2019

Total asset

16,941

15,761

17,305

Total liabilities

10,9359,231

10,443

10,288

8,689

9,784

6,006

6,530

6,861

5,986

6,507

6,840

Loans payable
Total net asset
Total shareholders’ equity

17

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits

5,564

2,825

Operational investment securities

11,671

13,033

Allowance for possible investment loss

(1,018)(1,043)Operating loans

204

204

Other

140

77

Allowance for doubtful accounts(0)－

16,561

15,09829

29

Accumulated depreciation

(16)

(16)

Buildings and structures, net

13

13

70

70

Accumulated depreciation

(60)

(61)

Vehicles, tools, furniture and fixtures, net

108

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

Vehicles, tools, furniture and fixtures

Land

22

13

Total property, plant and equipment

46

35

Other

94

95

Total intangible assets

94

95

Investment securities

514

451

Claims provable in bankruptcy, claims provable inrehabilitation and other

82

69

Other

30

30

Allowance for doubtful accounts

(24)

(18)

Total investments and other assets

602

532

743

663

17,305

15,761Intangible assets

Investments and other assets

Total non-current assets
Total assets

18Japan Asia Investment Co., Ltd.
Previous Accounting Standard(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Short-term loans payable

896

1,030

Accrued expenses

71

47

Income taxes payable

67

66

Provision for bonuses

62

45

Provision for loss on liquidation of subsidiaries andassociates

63

－

Other

265

235

1,426

1,425

Long-term loans payable

8,887

7,658

Deferred tax liabilities

1223

Total current liabilities
Non-current liabilities

Retirement benefit liability

116

123

Total non-current liabilities

9,017

7,805

10,443

9,231

Capital stock

5,426

5,426

Capital surplus

3,505

3,505

Retained earnings(2,006)(2,488)Treasury shares

(353)

(353)

Total shareholders' equity

6,571

6,090

Valuation difference on available-for-sale securities

312

419

Foreign currency translation adjustment

(44)

(2)

Total accumulated other comprehensive income

268

417

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

19

21

23

6,861

6,530

17,305

15,761

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(2) Consolidated Statements of Income(Millions of yen)
For six months ended
September 30, 2019(from April 1, 2018 toSeptember 30, 2019)

For six months ended
September 30, 2018(from April 1, 2018 toSeptember 30, 2018)
Operating revenue

716

691

Operating cost

638

582

Operating gross profit

78

108

Total selling, general and administrative expenses

543

530

Operating loss

(465)

(421)

Interest income

103Dividend income

163Foreign exchange gains

67

2

Gain on investments in partnership－

6

Selling, general and administrative expenses

Non-operating income

Miscellaneous income

6

2

101

18

Interest expenses

94

79

Miscellaneous loss

20

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary loss

97

79

(460)

(483)

Extraordinary income
Gain on sales of investment securities

4－

Gain on liquidation of subsidiaries and associates－

3

Gain on sales of shares of subsidiaries and associates－

4

Gain on sales of non-current assets

－

5

Other

－

0

Total extraordinary income

412Loss on valuation of investment securities

4－

Loss on redemption of investment securities

0－

Provision for loss on liquidation of subsidiaries andassociates

63

－

Other

0

－

Total extraordinary losses

68－

Extraordinary losses

Loss before income taxes

(524)

(470)

Income taxes - current

9

11

Total income taxes

9

11

Loss

(534)

(481)

Loss attributable to owners of parent

(534)

(481)

20