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

QualitativeInformationonConsolidated

OperatingResults for the three months Ended June 30, 2022
(1) Outline of consolidated operating results
The consolidated operating results of the JAIC Group for the first quarter of thecurrent fiscal year under review (from April 1, 2022 to June 30, 2022) recorded
operating revenue of 392 million yen (down 22.3% year-on-year), operating grossprofit of 101 million yen (down 27.7 % year-on-year), operating loss of 213 million
yen (compared to operating loss of 223 million yen for the first quarter of theprevious fiscal year), ordinary loss of 257 million yen (compared to ordinary loss of
276 million yen for the first quarter of the previous fiscal year) and loss attributableto owners of parent of 272 million yen (compared to loss attributable to owners ofparent of 288 million yen for the the first quarter of the previous fiscal year). The
breakdown of operating results are as follows.
(a) Breakdown of operating revenue and operating cost
(Fund management fees)
Fund management fees etc. consist of management fees and administrative feesfrom investment funds. Fund management fees etc. were 29 million yen (down0.8% year-on-year), about the same as year-on-year. The management fees fromfunds in liquidation process decreased.
(Investment income)
JAIC sold only private equity investments for the first quarter of the current fiscal
year under review and the same period of the previous fiscal year. For the firstquarter of the current fiscal year under review, JAIC sold listed shares in Japan andunlisted shares in Greater China. Proceeds of sale of listed shares increased yearon-year. Capital gains from unlisted shares in Greater China increased year-on-year.
As a result, the proceeds of sale of operational investment securities increased to
171 million yen (up 20.9 % year-on-year). Realized capital gain, which is calculated
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by deducting cost of securities sold from proceeds of sales of operational investment
securities, also increased to 57 million yen (up 240.9% year-on-year).
The total amount of investment write-offs and provision for allowance for possible
investment losses decreased to 1 million yen (down 94.9 % year-on-year).
For the first quarter of the previous fiscal year, JAIC posted investment write-off
because the business progress of an investee had been slower than planned andthe amount of investment collection from the investee decreased.
For the first quarter of the current fiscal year under review, there were noinvestment write-offs.
As a result, investment income, which is calculated by deducting investment writeoffs and provision for allowance for possible investment losses from realized capitalgains, amounted to 55 million yen (compared to investment loss of 11 million yen
for the first quarter of the previous fiscal year).
(Fund interests income, etc.)
Fund interests income, etc. consist of revenue from electricity sales, revenue fromvegetable sales and other revenues of the projects operated by the JAIC Group,interests income from the projects operated by other companies (such as net profits
of the projects sourced from electricity sales and gains from the sale of projects),
interests income from private equity funds operated by other companies, interestand dividend income and other income.
The total amount of fund interests income, etc. for the first quarter of the current
fiscal year under review decreased to 186 million yen (down 42.9 % year-on-year).
Out of this, revenue from electricity sales, revenue from vegetable sales and otherrevenues of the projects operated by the JAIC Group accounted for 184 million yen(down 42.7 % year-on-year). The main factor of the decrease was the sale of somemega solar projects that were selling electricity in the previous fiscal year.
(Fund interests losses, etc.)
Fund interests losses, etc. consist of cost of electricity sales, cost of producing
vegetables and other costs of the projects operated by the JAIC Group, interests
losses (such as costs, etc. of projects under construction) of the projects operated
by other companies and interests losses, etc. of the private equity funds operated
by other companies.
The total amount of fund interests losses etc. for the current fiscal year under review
decreased to 171 million yen (down 17.6 % year-on-year). Out of this, cost of
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electricity sales, cost of producing vegetables and other costs of the projects
operated by the JAIC Group accounted for 155 million yen (down 14.3 % year-onyear). The main factor of the decrease was the sale of some mega solar projects
that are selling electricity in the previous fiscal year.
As a result, operating revenue decreased by 22.3 % year-on-year to 392 million
yen, operating cost decreased by 20.3 % year-on-year to 290 million yen andoperating gross profit decreased by 27.7 % year-on-year to 101 million yen.
(b) Selling, general and administrative expenses and operating income
The total amount of selling, general and administrative expenses decreased to 315
million yen (down 13.6 % year-on-year). Administrative expenses from projects
decreased due to the sale of some mega solar projects that are selling electricity inthe previous fiscal year.
As a result, operating loss was 213 million yen (compared to operating loss of 223
million yen for the first quarter of the previous fiscal year).
(c) Non-operating income, non-operating expenses and ordinary income
Non-operating income decreased to 3 million yen (down 71.9 % year-on-year) due
mainly to a decrease of foreign exchange gains.
Non-operating expenses decreased to 48 million yen (down 27.1 % year-on-year)
due to a decrease of interest expenses. On the non-consolidated basis, interest
expenses decreased with the reduction of loans payable. On the consolidated basis,interest expenses also decreased with the reduction of loans payable by project
finance due to the sale of some mega solar projects in the previous fiscal year.
As a result, ordinary loss was 257 million yen (compared to ordinary loss of 276
million yen for the first quarter of the previous fiscal year).
(d) Extraordinary income/loss and Profit/Loss attributable to owners of parent
For the first quarter of the previous fiscal year, no extraordinary income or loss wereposted. For the first quarter of the current fiscal year under review, loss on valuationof investment securities of 13 million yen was posted.
As a result of deducting extraordinary loss, income taxes and profit attributable tonon-controlling interests from ordinary loss, loss attributable to owners of parent
amounted to 272 million yen (compared to loss attributable to owners of parent of
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288 million yen for the first quarter of the previous fiscal year). JAIC properly
estimated tax effect accounting and did not recognize deferred tax assets for boththe first quarter of the previous fiscal year and the first quarter of the current fiscal
year under review.
(2) Cash flows(Cash flow from operating activities)
Net cash used in operating activities amounted to 265 million yen (compared to 533
million yen used in for the first quarter of the previous fiscal year). Operational
investment securities decreased due to the progress of investment collection.
(Cash flow from investing activities)
Net cash used in investing activities was 0 million yen (compared to 0 million yen
used in for the first quarter of the previous fiscal year).There were no significant
proceeds or expenditures with non-operational investment securities and fixed
assets.
(Cash flow from financing activities)
Net cash used in financing activities with repayments of long-term borrowings
decreased year-on-year to 309 million yen (compared to 507 million yen for the
first quarter of the previous fiscal year).
Cash and cash equivalents as of June 30, 2022 decreased by 561 million yen fromMarch 31, 2022 to 1,836 million yen, after adding effect of exchange rate change
on cash and cash equivalents of 13 million yen.
(3) Financial position(Assets)
Total assets as of June 30, 2022 decreased to 19,672 million yen (compared to20,231 million yen as of March 31, 2022).
Cash and deposits decreased to 4,483 million yen (compared to 5,666 million yen
as of March 31, 2022) due to repayment of loans payable, and payment of expensesand interests.
Meanwhile, the amount of the cash and deposits included deposits attributable tothe investment funds operated by the JAIC Group. Those deposits must be
managed in accordance with each fundʼs partnership agreement. The JAIC Group
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clearly separates and manages those deposits from cash and deposits belonging
to the JAIC Group. Cash and deposits belonging to the JAIC Group were cash andcash equivalents of 1,836 million yen as of June 30, 2022 (compared to 2,397
million yen as of March 31, 2022) in the consolidated statements of cash flows.
In addition, private equity investments conducted by the JAIC Group are highly
affected by factors such as stock market fluctuations due to the nature of theirbusiness. It is difficult to make a reasonable forecast of business results in thecurrent volatile environment. As a result, the amount of funds recovered fromprivate equity investments could decline significantly. Under these circumstances,
the JAIC Group must maintain a certain balance of cash and deposits at all times toensure not only the payment of expenses and interests and the repayment of loans
payable but also the investment for future growth.
Property, plant and equipment mainly consists of assets of projects operated by theJAIC Group, such as renewable energy power plant facilities, vegetable plantfacilities and group homes for the handicapped. Since group homes for thehandicapped were newly constructed during the first quarter of the current fiscal
year under review, the amount increased to 4,249 million yen (compared to 4,148million yen as of March 31, 2022).
Operational investment securities consist of private equity investments, the projects
those are operated by the JAIC Group and are in the early stages of development,
and the projects operated by other companies.
Operational investment securities as of June 30, 2022 increased to 9,620 millionyen (compared to 9,538 million yen as of March 31, 2022), due mainly to newinvestment executions of project oriented investment.
Allowance for possible investment losses as of June 30, 2022 increased to 1,523
million yen (compared to 1,492 million yen as of March 31, 2022), due mainly toforeign exchange.
As a result, the investment loss provision ratio (ratio of allowance for possible
investment losses to operational investment securities) as of June 30, 2022 was
15.8 %, up 0.2 points from March 31, 2022.
(Liabilities)
Total liabilities decreased to 10,491 million yen as of June 30, 2022 (compared to5/8

10,787 million yen as of March 31, 2022).
Of liabilities, total of loans payable and bonds as of June 30, 2022 decreased to9,324 million yen (compared to 9,521 million yen as of March 31, 2022). Loanspayable of JAIC itself decreased to 5,633 million yen (compared to 5,943 million
yen as of March 31, 2022). Project finance and bonds for the projects operated by
the JAIC Group as of June 30, 2022 increased to 3,690 million yen (compared to3,578 million yen as of March 31, 2022).
Loans payable of JAIC itself decreased reflecting the repayments for the first quarterof the current fiscal year under review. After securing investment funds for future
growth, JAIC will repay its loans payable to an appropriate level.
The balance of loans payable by project finance and bonds for the projects operated
by the JAIC Group increased from the end of the previous consolidated fiscal year
because the amount of new procurement exceeded the amount of repayment.
Project finance and bond for the projects operated by the JAIC Group will not affectthe financial soundness of the JAIC Group, since its source of payments is limited
to the assets and revenues of the projects. Therefore, the JAIC Group will continue
to expand fund raising through project finance and bond. The JAIC Group will
promote leveraged investment in a wide range of projects including renewableenergy projects operated by the JAIC Group. This enhance profitability of the JAIC
Group without compromising on financial soundness.
(Net assets)
Of net assets, total shareholdersʼ equity as of June 30, 2022 decreased to 7,488
million yen (compared to 7,766 million yen as of March 31, 2022) due to a loss
attributable to owners of parent. As a result, the equity ratio as of June 30, 2022
fell by 0.3 points to 38.1 % (compared to 38.4% as of March 31, 2022). Total netassets as of June 30, 2022 also decreased to 9,180 million yen (compared to 9,443
million yen as of March 31, 2022).
(4) Business Position(a) Investment and loan activities
For the first quarter of the current fiscal year under review, new investments andloans decreased by 89.2 % year-on-year to 93 million yen in 4 companies/projects.
As of June 30, 2022, the balance of investments and loans decreased to 13,128
million yen in 126 companies/projects (compared to 13,784 million yen in 129
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companies/projects as of March 31, 2022).
As for private equity investment, when JAICʼs own capital is invested, JAIC makes
strategic investment in partner companies for project oriented investment. JAIC
invests its own capital in a selective manner based on business themes in line withits management philosophy in principle. When the capital of a fund is invested, JAIC
makes financial investment pursuant to the fundʼs investment policy.
For the first quarter of the current fiscal year under review, in total of new
investments and loans in new companies and additional investments in existing
companies decreased by 98.4 % year-on-year to 11 million yen in 2 companies.
There was no execution of strategic investments and was less execution of aninvestment from the fund supporting the business succession needs.
As a result, the balance of investments and loans decreased to 7,248 million yen in
84 companies (compared to 7,440 million yen in 86 companies as of March 31,2022).
(b) Management of investment funds
As of June 30, 2022, the number of investment funds, for which the JAIC Group is
responsible for management, operation or provision of investment information,
totaled 10, and the balance of total commitment amounts under management
amounted to 16,952 million yen (compared to 10 investment funds with 16,463
million yen as of March 31, 2022).
In the first quarter of the current fiscal year under review, the total commitment
amount in investment funds increased due to foreign exchange fluctuation.

Looking at project oriented investment for the first quarter of the current fiscal year
under review, in total of new investments and loans in new projects and additional
investments in existing projects decreased by 42.5 % year-on-year to 81 million
yen in 2 projects. The investment amounts decreased in distribution center projects
and healthcare projects.
During the first quarter of the current fiscal year under review, funds invested by
the JAIC Group sold their assets in 1 healthcare project and 1 distribution center
project. As a result, the balance of investments and loans as of June 30, 2022
decreased to 5,879 million yen in 42 projects (compared to 6,344 million yen in 43
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projects as of March 31, 2022).

As of June 30, 2022, JAIC invested in 14 mega solar projects (16 power plants)
with the capacity of 33.0ＭＷ which are either currently selling electricity or are
under construction or planning. Out of these mega solar projects, the portion that
attributable to JAIC is 14.2ＭＷ in capacity. JAIC also invested in one woody biomass
project with the capacity of 2.0ＭＷ, two biogas projects with the capacity of 1.1Ｍ
Ｗ, one biogas plant operator and one wind power project with the capacity of 25.2
ＭＷ at most.

(End)

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