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, 2019
[Japanese Standards](Summary of Japanese announcement)
May 15, 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 ordinary general meeting of shareholders: June 26, 2019
Scheduled date for submission of annual report: June 27, 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 year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(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, 2019

3,503

(57.8)

294(76.2)

5

For the year ended
March 31, 2018

8,303

77.4

1,237

67.5

1,047

Profit attributable toowners of parent
Millions of yen % change(99.4)

577(55.0)

93.6

1,281

127.1

(Note) Comprehensive Income
For the year ended March 31, 2019: 270 millions of yen (72.1%)
For the year ended March 31, 2018: 967 millions of yen 121.2%

Yen

Yen

%

%

Operating income
to operating
revenues
%

32.60

32.53

8.7

0.0

8.4

72.45

72.31

21.7

3.9

14.9

Net income per share
For the year ended
March 31, 2019
For the year ended
March 31, 2018

Diluted net income
per share(Reference)Equity in earnings (loss) of affiliates
For the year ended March 31 2019: ― millions of yen
For the year ended March 31 2018: ― millions of yen

1

Return on equity

Ordinary income tototal assets

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

Total assets

Net assets
Millions of yen
8,400

%

Yen

As of March 31, 2019

Millions of yen
28,84523.6

383.89As of March 31, 201827,184

8,053

23.9

367.34(Reference) Total shareholders' equity;
As of March 31, 2019: 6,796 millions of yen

Equity ratio

As of March 31, 2018: 6,503 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

299

1,224

(2,173)

4,082

1,870

238

(2,173)

4,757

For the year ended March
31, 2019
For the year ended March
31, 2018

equivalents at

2. Dividends(Base date)Year ended March
31, 2018
Year ended March
31, 2019
Year ending March
31, 2020 (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, 2020 (from April 1, 2019 to March 31, 2020)
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, 2020 (April 1,
2019 to March 31, 2020)” 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): Yes[New 1 company (company name: 1 investment fund) Excluded 2 companies (company name: 2 investment funds)](2) 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
(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, 2019:
stock)(ii) Shares of treasury stock at the end of
The year ended Marcheach period
31, 2019:(ii) Average number of shares during the
The year ended March
period31, 2019:

2

17,884,392
sharesThe year ended March
31, 2018:

17,884,392
shares181,009
shares17,703,383
sharesThe year ended March
31, 2018:
The year ended March
31, 2018:

181,009
shares17,694,341
sharesJapan Asia Investment Co., Ltd.
Fund Consolidation

Reference: Non-consolidated results
Business results for the year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(1) Results of operations(Percentages indicate year-on-year increase or decrease)

Operating revenues
Millions of yen% change
For the year ended
March 31, 2019
For the year ended
March 31, 2018

Ordinary income
Millions of yen% change

Net income
Millions of yen% change

2,271(56.1)

344(65.8)

244(75.2)

588(34.5)

5,172

42.8

1,006

27.9

987

46.9

898

62.4

Net income per share
Yen
For the year ended
March 31, 2019
For the year ended
March 31, 2018

Operating income
Millions of yen% change

Diluted net income
per share
Yen

33.24

33.18

50.80

50.70

(2) Financial position

As of March 31, 2019
As of March 31, 2018

Total assets
Millions of yen
16,945
18,614

Net assets
Millions of yen
6,610
6,039

(Reference) Total shareholders' equity As of March 31, 2019: 6,588 millions of yen

Equity ratio
%
38.9
32.4

Net assets per shareYen
372.16340.17

As of March 31, 2018: 6,022 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, 2019 will be released on our website by May
31, 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.

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, 2018(from April 1, 2017
to March 31, 2018)

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

8,303

3,503

Management fees

177

152

Contingency fees

55

－

6,747

1,897

1,124

1,391

Income gains

68

28

Other operating revenue

130

33

Total operating cost (C)

5,656

1,895

4,787

616

630

710

232

562

5

6

Operating gross profit (A) - (C)

2,646

1,608

Realized capital gains (B) - (D)

1,959

1,281

Investment income

1,329

570

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

Cost of securities sold(D)

Investment write-offs & Provision
for allowance for possible
investment losses(E)

Fund interests losses etc.
Other operating cost(B) - (D) - (E)(2) Cash flows
For the year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)(Millions of yen)
For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)

Cash flow from operating activities

1,870

299

Cash flow from investing activities

238

1,224

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

Cash and cash equivalents at theend of period

4,757

4,082

4

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Operational Investment Securities and Allowance for Possible Investment Loss
As of March 31, 2018
Amount(B)/(A) (%)
Operational Investment Securities(A)
Allowance for Possible Investment
Loss (B)(Millions of yen)
As of March 31, 2019
Amount(B)/(A) (%)

9,394

－

10,242－(1,535)

16.3(1,538)15.0(4) Breakdown of Loans payable(Millions of yen)
As of March 31, 2018
Total of loans payableNon-consolidated base loans
payableLoans payable of SPC etc.
by project finance

As of March 31, 201918,367

19,552

11,954

9,784

6,412

9,768

5

Japan Asia Investment Co., Ltd.
Fund Consolidation

2.Business Position(1) Investment activities (JAIC+Funds)i) Breakdown of new investment
For the year ended
March 31, 2018(from April 1, 2017 toMarch 31, 2018)
AmountNumber ofcompanies (Millions ofyen)

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

Area
Japan

20

3,639

14

3,662

China, Hong Kong, Taiwan

3

191

1

86

Southeast Asia

-

-

-

-

Others

1

56

1

0

11

2,681

12

3,612

13

1,205

4

136

5

692

1

86

4

231

1

0

1

146

-

-

2

84

2

50

1

50

-

-

24

3,887

16

3,749

Industry
Project Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
OthersTotalii) Balance of investment
As of March 31, 2018
Number ofcompanies

As of March 31, 2019

Amount(Millions ofyen)

Number ofcompanies

Amount(Millions of
yen)

Area
Japan

97

7,817

81

8,485

China, Hong Kong, Taiwan

45

5,912

42

5,164

Southeast Asia

5

189

5

189

Others

7

61

6

111

24

3,582

26

5,514

130

10,398

108

8,437

30

4,156

29

3,540

58

2,581

48

2,119

8

863

6

462

16

1,242

14

1,173

18

1,555

11

1,141

154

13,981

134

13,951

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

Note:
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.

6

Japan Asia Investment Co., Ltd.
Fund Consolidation(2)JAIC-Backed IPOs (JAIC+Funds)i)Number of IPOs

Japan
Overseas
Total

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

For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)2 companies- company
2 companiesii) First price multiple
For the year ended
For the year ended
March 31, 2018
March 31, 2019(from April 1, 2017(from April 1, 2018
to March 31, 2018)
to March 31, 2019)Japan
3.1 times
9.7 times
Overseas
3.2 times- times
Note: First price multiple = Gross market capitalization at first price/Total our acquisition cost. However, the calculationof the first price multiple does not include the number of companies whose listed shares the group acquired as aresult of equity swaps.
iii) JAIC-Backed IPOs
Fiscal year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)
Company
Date ofMarketBusiness
Name
IPO
Suzhou Institute of Building
Construction survey, new building
5-Sep-17
SSE A-shares
Science Groupmaterials, professional construction- Collection, transport, intermediate
treatment and permanent disposal ofindustrial waste
MIDAC CO., LTD.
22-Dec-17 NSE 2nd Sec.
- Collection, transport andintermediate treatment of generalwaste
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)
Company
Date ofMarketBusiness
Name
IPO
Providing ASP licensing services
for big data analytics of patents(TechRadar) and documents
VALUENEX Inc.
30-Oct-18
TSE Mothers(DocRadar), and offering
consulting services utilizing thesetools and unique methodologies
Financial media business andinformational fintech solution
MINKABU THE
business, utilizing content generating
19-Mar-19
TSE Mothers
INFONOID,Inc.
technology with its proprietary
artificial intelligence and crowd
inputs7

Headquarters
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, 2018 As of March 31, 2019
Total commitment amount in investment
19,15016,494funds (Millions of yen)
(5,867)(5,344)(Total commitment amount of JAIC group)
No. of funds
1210
Note: Funds being wound up after their maturity are not included in the data above.
ii) Funds newly established or those commitment amount increased
For the year ended March 31, 2018 (April 1, 2017 to March 31, 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

1,000
1

amountincreased‐‐

For the year ended March 31, 2019 (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 the year ended March 31, 2018 (April 1, 2017 to March 31, 2018)
Date of
Total commitment amount
Name of fundMain investment targets
establishment（Millions of yen）
Succession Investment
Jun 2017
1,000
SMEs in Japan which has successor problem
Limited Partnership, I
For the year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
Date of
Total commitment amountcommitment
Name of fundincresed
amount（Millions of yen）
increased
June &
Succession Investment
October
2,000
Limited Partnership, I
2018iv) Funds to reach maturity within three years of the fiscal year-end
For the year ending
March 31, 2020
(April 1, 2019 toMarch 31, 2020)
Total commitment amount in investment
9,512
funds (Millions of yen)
No. of funds

6

Main investment targets

SMEs in Japan which has successor problem

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

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

1,482

500

1

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, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits

9,019

Operational investment securities

7,108

9,394

10,242(1,535)(1,538)Operating loans

204

204

Other

614

347

Allowance for possible investment loss

Allowance for doubtful accounts
Total current assets

(39)

(0)

17,65816,363

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

29

Accumulated depreciation

(15)

(16)

Buildings and structures, net

14

13

4,223

7,207

Machinery and equipment
Accumulated depreciation

(257)

(547)

Machinery and equipment, net

3,965

6,659

Vehicles, tools, furniture and fixtures

70

70

Accumulated depreciation

(55)

(60)

Vehicles, tools, furniture and fixtures, net

14

10

Land

22

22

Construction in progress

3,065

3,949

Total property, plant and equipment

7,083

10,656

Other

586

783

Total intangible assets

586

783

1,454

514

Claims provable in bankruptcy, claims provable inrehabilitation and other

89

82

Other

331

470

Intangible assets

Investments and other assets
Investment securities

Allowance for doubtful accounts

(18)

(24)

Total investments and other assets

1,856

1,042

Total non-current assets

9,526

12,481

Total assets

27,184

28,8459

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

As of March 31, 2019

Liabilities
Current liabilities
Short-term loans payable

2,222

1,250

Accrued expenses

290

219

Income taxes payable

61

67

Provision for bonuses

51

62

Provision for loss on liquidation of subsidiaries andassociates

－

63

Other

80

48

2,706

1,711

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

16,14418,302

Deferred tax liabilities

18

12

Retirement benefit liability

112

116

Asset retirement obligations

149

301

Total non-current liabilities

16,424

18,733

Total liabilities

19,131

20,444

Net assets
Shareholders' equity
Capital stock

5,426

5,426

Capital surplus

3,408

3,408

Retained earnings(2,529)(1,952)

Treasury shares

(353)

(353)

Total shareholders' equity

5,951

6,528

Valuation difference on available-for-sale securities

29

71

Foreign currency translation adjustment

522

195

Accumulated other comprehensive income

Total accumulated other comprehensive income

551

267

Share acquisition rights

17

21

Non-controlling interests

1,532

1,583

Total net assets

8,053

8,400

Total liabilities and net assets

27,184

28,84510

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

For the year ended
March 31, 2018
(April 1, 2017 to March 31,
2018)(Millions of yen)
For the year ended
March 31, 2019
(April 1, 2018 to March 31,
2019)

Operating revenue

8,303

3,503

Operating cost

5,656

1,895

Operating gross profit

2,646

1,608

Selling, general and administrative expenses
Salaries and allowances

289

265

Operations consignment expenses

191

156

Provision for bonuses

51

62

Retirement benefit expenses

23

25

1

(30)

Taxes and dues

Provision of allowance for doubtful accounts

134

130

Depreciation

9

16

Fund interests expenses

302

286

Other

405

399

Total selling, general and administrative expenses

1,409

1,314

Operating profit

1,237

294

Interest income

25

15

Dividend income

135

17

Foreign exchange gains－

51

Miscellaneous income

8

12

169

97

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses

352

383

Foreign exchange losses

3－

Miscellaneous loss

4

2

Total non-operating expenses

360

385

1,047

5

Gain on sales of investment securities－

32

Gain on redemption of investment securities－

425

Gain on sales of shares of subsidiaries and associates－

226

Gain on sales of non-current assets

0－Ordinary profit
Extraordinary income

Subsidy income

217

－

Other

19

38

Total extraordinary income

237

723

Extraordinary losses
Loss on sales of investment securities－

41

Loss on valuation of investment securities－

31

Loss on redemption of investment securities

81

25

Loss on sales of shares of subsidiaries and associates－

9

Provision for loss on liquidation of subsidiaries andassociates

－

63

0
82
1,201

0
171
557

Other
Total extraordinary losses
Profit before income taxes

11

Japan Asia Investment Co., Ltd.
Fund Consolidation

For the year ended
March 31, 2018
(April 1, 2017 to March 31,
2018)(Millions of yen)
For the year ended
March 31, 2019
(April 1, 2018 to March 31,
2019)

19
19
1,182

18
18
538

Income taxes - current
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

12

(99)

(38)

1,281

577

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income(Millions of yen)
For year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)For year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)
Profit1,182

538

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

(344)

86

Deferred gains or losses on hedges

100－

Foreign currency translation adjustment

19

(355)

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

90Total other comprehensive income

(215)

(268)

Comprehensive income

967

270

Comprehensive income attributable to owners of parent

1,197

293

Comprehensive income attributable to non-controllinginterests

(229)

(23)

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, 2018 (April 1, 2017 to March 31, 2018)(Millions of yen)

Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

5,426

3,443

Retainedearnings

Treasury shares

Total
shareholders'equity

(400)

4,657

(3,811)

Changes of items during period
Profit attributable to owners ofparent1,281

Disposal of treasury shares(30)

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

(4)

1,281

46

16

(4)

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

－

(35)

1,281

46

1,293

Balance at end of current period

5,426

3,408

(2,529)

(353)

5,951

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

253

(100)

483

635

28

Non-controlling
Total net assetsinterests

1,529

6,851

Changes of items during period
Profit attributable to owners ofparent1,281

Disposal of treasury shares

16

Change in ownership interest ofparent due to transactions with
non-controlling interests(4)

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

(223)

100

39

(84)

(11)

3

(92)

(223)

100

39

(84)

(11)

3

1,201

29

－

522

551

17

1,532

8,053

14

Japan Asia Investment Co., Ltd.
Fund Consolidation（4）Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)

Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

5,426

3,408

Retainedearnings

Treasury shares

Total
shareholders'equity

(353)

5,951

(2,529)Changes of items during period
Profit attributable to owners ofparent577

577

Disposal of treasury shares－

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

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

－

－

577

－

577

Balance at end of current period

5,426

3,408

(1,952)

(353)

6,528

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

29

－

522

551

17

Non-controlling
Total net assetsinterests

1,532

8,053

Changes of items during period
Profit attributable to owners ofparent577

Disposal of treasury shares－

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

Net changes of items other thanshareholders' equity

42

(326)

(284)

4

50

(229)

Total changes of items during
period

42

－

(326)

(284)

4

50

347

Balance at end of current period

71

－

195

267

21

1,583

8,400

15

Japan Asia Investment Co., Ltd.
Fund Consolidation(5) Consolidated Statements of Cash Flows(Millions of yen)
For year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)For year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)
Cash flows from operating activities
Profit before income taxes

1,201

Depreciation

557

9

16

(178)

(235)

Increase (decrease) in allowance for doubtful accounts

1

(36)

Increase (decrease) in provision for bonuses

18

11

Increase (decrease) in allowance for investment loss

Increase (decrease) in retirement benefit liability(1)4Interest and dividend income

(139)

(21)

Interest expenses

221

183

Loss (gain) on redemption of investment securities

62

(399)

Loss (gain) on sales of shares of subsidiaries andassociates

－

(217)

Loss on valuation of operational investment securities

305

369

Decrease (increase) in investment securities for sale

(463)

(859)

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

30

10

Payment for purchase of investment funds(1,903)(964)

Dividends from investment funds

2,963

1,636

Increase (decrease) in investment funds of minority
interest

(310)

39

Other, net

(35)

40

Subtotal

1,781

135

Interest and dividend income received

139

21

Interest expenses paid

(229)

(190)

(22)
201
1,870

(19)
352
299

Purchase of intangible assets

(46)

(49)

Purchase of investment securities

(13)

(15)

3

593

Proceeds from redemption of investment securities

306

702

Other, net

(10)

(6)

Net cash provided by (used in) investing activities

238

1,224

Repayments of long-term loans payable(2,173)(2,170)

Other, net
Net cash provided by (used in) financing activities

0(2,173)(3)(2,173)8(26)

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

(57)
4,815

(675)
4,757

Cash and cash equivalents at end of period

4,757

4,082

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from sales of investment securities

Cash flows from financing activities

Effect of exchange rate change on cash and cash
equivalents

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(Change in accounting policy)(Application of “Practical Solution on Transactions Granting Employees and Others Stock Acquisition Rights,
which Involve Considerations, with Vesting Conditions, etc.”)

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

(Segment Information)
Segment information is not provided as the Group has single segment; Investment business.

(Per-share Data)

For the year ended March 31, 2018
(April 1, 2017, to March 31, 2018)¥367.34¥72.45¥72.31For the year ended March 31, 2019
(April 1, 2018, to March 31, 2019)¥383.89¥32.60¥32.53

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, 2018
For the year ended March 31, 2019
(April 1, 2018 to March 31, 2019)(April 1, 2017 to March 31, 2018)
Net income per share
Net income attributable toowners of parent
1,281
577
(Millions of yen)Amount not attributable tocommon shareholders－－(Millions of yen)
Net income attributable toowners of parent relating to
1,281
577
common stock (Millions of yen)
Average no. of shares
outstanding during the term
17,694
17,703(Thousands)
Diluted net income per share
Adjustment of net income
attributable to owners of parent－－(Millions of yen)
Increase in common stock33
36(Thousands)
Share acquisition rights
33
36
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 31,2018

As of March 31,2019

AssetsCurrent assets
Cash and deposits

6,637

4,978

Operational investment securities

10,475

11,631

Allowance for possible investment loss

(1,188)(1,018)Operating loans

204

204

Accounts receivable - other

368

44

Other

88

81

Allowance for doubtful accounts

(41)

(0)

16,544

15,921

14

13

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Tools, furniture and fixtures

9

6

Land

22

22

Total property, plant and equipment

47

43

Other

8

8

Total intangible assets

8

8

1,047

341

Shares of subsidiaries and associates

816

482

Claims provable in bankruptcy, claims provable inrehabilitation and other

88

82

Other

78

88

Allowance for doubtful accounts

(17)

(24)

Total investments and other assets

2,013

971

Total non-current assets

2,069

1,023

Total assets

18,614

16,945Intangible assets

Investments and other assets
Investment securities

18

Japan Asia Investment Co., Ltd.
Non Consolidation(1) Balance Sheets(Millions of yen)
As of March 31,2018

As of March 31,2019Liabilities
Current liabilities
Current portion of long-term loans payable

1,468

896

Accrued expenses

148

68

Income taxes payable

53

60

Provision for bonuses

43

57

Other

243

236

1,957

1,318

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

10,486

8,887

Provision for retirement benefits

112

116

Deferred tax liabilities

18

12

Total non-current liabilities

10,616

9,017

Total liabilities

12,574

10,335

5,426

5,426

Legal capital surplus

1,426

1,426

Other capital surplus

2,081

2,081

Total capital surpluses

3,507

3,507

(2,903)(2,315)(2,903)(2,315)

Net assets
Shareholders' equity
Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares

(353)

(353)

Total shareholders' equity

5,676

6,264

Valuation difference on available-for-sale securities

346

323

Total valuation and translation adjustments

346

323

Share acquisition rights

17

21

6,039

6,610

18,614

16,945

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, 2019(from April 1, 2018
to March 31, 2019)For year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)
Operating revenue

5,172

2,271

Operating cost

3,069

982

Operating gross profit

2,103

1,288

Selling, general and administrative expenses

1,096

944

Operating profit

1,006

344

Interest income

179Dividend income

180

17

Foreign exchange gains

2

49

Miscellaneous income

5

9

206

85

Interest expenses

221

183

Miscellaneous loss

3

2

224

185

987

244

Gain on sales of investment securities－

28

Gain on redemption of investment securities

18

425

Other

0

0

Total extraordinary income

19

453

Loss on sales of investment securities－

41

Loss on valuation of investment securities－

31

Loss on redemption of investment securities

104

25

Loss on sales of shares of subsidiaries and associates

－

7

Other

0

－

105

105

902

592

Income taxes - current

3

4

Total income taxes

3

4

898

588

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses
Profit before income taxes

Profit20

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Year Ended March 31, 2019
May 15, 2019

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Year Ended March 31, 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 year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(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, 2019
For the year ended
March 31, 2018

2,475

(54.2)

177(82.6)

83(91.2)

578(33.8)

5,403

37.6

1,017

21.5

954

31.3

874

57.8

Yen

Diluted net income
per share
Yen

32.67

32.60

8.6

0.5

7.2

49.40

49.31

14.3

4.8

18.8

Net income per share
For the year ended
March 31, 2019
For the year ended
March 31, 2018

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, 201917,305

As of March 31, 201819,220(Reference) Total shareholders' equity

Equity ratio%

Net assets per share
Yen

6,861

39.5

386.38

6,568

34.1

369.75

As of March 31, 2019: 6,840 millions of yen As of March 31, 2018: 6,545millions of yen

21

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
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, 2019
For the year ending
March 31, 2020

Operating income

Ordinary income

Profit attributable to ownersof parent
Millions of yen% change

Millions of yen% change

Millions of yen% change

Millions of yen% change600(16.2)

(240)

－

(320)

－

(330)

－

3,500

41.4

800

350.9

650

674.8

500

(13.6)Net income per share
Yen
For six months ending
September 30, 2019
For the year ending
March 31, 2020

(18.64)
28.24

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, 2019.

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, 2018(from April 1, 2017
to March 31, 2018)
Total operating revenue (A)(Millions of yen)
For the year ended
March 31, 2019(from April 1, 2018
to March 31, 2019)

5,403

2,475

Management fees

277

241

Contingency fees

86

－

3,219

1,746

1,612

406

Income gains

64

23

Other operating revenue

142

57

Total operating cost (C)

3,074

1,188

Cost of securities sold (D)

2,469

554

562

579

Fund interests losses etc.

36

49

Other operating cost

5

6

Operating gross profit (A) - (C)

2,328

1,286

Realized capital gains (B) - (D)

749

1,192

Investment income

187

613

Proceeds of sales of operational
investment securities (B)Fund interests income etc.

Investment write-offs & Provision
for allowance for possible
investment losses (E)(B)-(D)-(E)(2) Asset, Liability and Net asset(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Total asset

19,22017,305

Total liabilities

12,652

10,443

11,954

9,784

6,568

6,861

6,545

6,840

Loans payable
Total net asset
Total shareholders’ equity

23

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits

7,308

5,564

Operational investment securities

10,844

11,671

Allowance for possible investment loss

(1,230)(1,018)Operating loans

204

204

Other

467

140

Allowance for doubtful accounts
Total current assets

(40)

(0)

17,554

16,561

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

29

Accumulated depreciation

(15)

(16)

Buildings and structures, net

14

13

Vehicles, tools, furniture and fixtures

70

70

Accumulated depreciation

(55)

(60)

Vehicles, tools, furniture and fixtures, net

14

10

Land

22

22

Total property, plant and equipment

51

46

Other

55

94

Total intangible assets

55

94

1,454

514

Claims provable in bankruptcy, claims provable inrehabilitation and other

89

82

Other

33

30

Allowance for doubtful accounts

(18)

(24)

Total investments and other assets

1,558

602

Total non-current assets

1,665

743

Total assets

19,22017,305Intangible assets

Investments and other assets
Investment securities

24

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

As of March 31, 2019

Liabilities
Current liabilities
Short-term loans payable

1,468

896

Accrued expenses

156

71

Income taxes payable

61

67

Provision for bonuses

51

62

Provision for loss on liquidation of subsidiaries andassociates

－

63

Other

297

265

2,035

1,426

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

10,486

8,887

Deferred tax liabilities

18

12

Net defined benefit liability

112

116

Total non-current liabilities

10,616

9,017

Total liabilities

12,652

10,443

5,426

5,426

Net assets
Shareholders' equity
Capital stock
Capital surplus

3,505

3,505

Retained earnings(2,584)(2,006)

Treasury shares

(353)

(353)

Total shareholders' equity

5,993

6,571

Valuation difference on available-for-sale securities

332

312

Foreign currency translation adjustment

219

(44)

Total accumulated other comprehensive income

552

268

Share acquisition rights

17

21

Non-controlling interests

5－

Total net assets

6,568

6,861

Total liabilities and net assets

19,22017,305

Accumulated other comprehensive income25

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

For the year ended
March 31, 2018
(April 1, 2017 to March 31,
2018)(Millions of yen)
For the year ended
March 31, 2019
(April 1, 2018 to March 31,
2019)

Operating revenue

5,403

2,475

Operating cost

3,074

1,188

Operating gross profit

2,328

1,286

Selling, general and administrative expenses
Salaries and allowances

289

265

Operations consignment expenses

190

155

Provision for bonuses

51

62

Retirement benefit expenses

23

25

1

(30)

Taxes and dues

Provision of allowance for doubtful accounts

134

130

Depreciation

9

16

610

482

Total selling, general and administrative expenses

Other

1,311

1,109

Operating profit

1,017

177

Non-operating income
Interest income

21

13

Dividend income

135

17

－

51

Foreign exchange gains
Miscellaneous income

8

9

166

91

221

183

Foreign exchange losses

3－

Miscellaneous loss

3

2

Total non-operating expenses

228

185

Ordinary profit

954

83

Total non-operating income
Non-operating expenses
Interest expenses

Extraordinary income
Gain on sales of investment securities－

32

Gain on redemption of investment securities

18

425

Gain on sales of shares of subsidiaries and associates－

226

Gain on reversal of subscription rights to shares

0

－

Other

0

－

Total extraordinary income

19

684

Loss on sales of investment securities－

41

Loss on valuation of investment securities－

31

Extraordinary losses

Loss on redemption of investment securities

81

25

Loss on sales of shares of subsidiaries and associates－

9

Provision for loss on liquidation of subsidiaries andassociates

－

63

Other

0

0

Total extraordinary losses

82

171

Profit before income taxes

891

597

Income taxes - current

18

18

Total income taxes

18

18

Profit

872

578

26

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

For the year ended
March 31, 2018
(April 1, 2017 to March 31,
2018)
Profit (Loss) attributable to non-controlling interests
Profit attributable to owners of parent

27(Millions of yen)
For the year ended
March 31, 2019
(April 1, 2018 to March 31,
2019)

(1)

0

874

578