1

Shimomura: Thank you always for your support. I am Shimomura,President and CEO of Japan Asia Investment Co., Ltd. I will explain thefinancial results for the quarter under review.
Today I will explain point one to point four from the table of contents.
Though we have disclosed two consolidated figures, i.e., the fundconsolidation standard and the previous consolidation standard, here wewill explain the latter.

2

The first is a general overview of the whole.
Cumulative results for the quarter under review were down 21.7%
compared to the same period of the previous fiscal year, but the final loss
was reduced by approximately JPY150 million. In the same period of theprevious fiscal year, we executed the sale of large-scale unlisted shares.
Compared to this, the sale of unlisted shares was small in the quarter
under review, primarily due to the focus of selling highly-profitable listed
shares. As a result, although revenues declined, gains on sales of shares
increased. In addition, a decrease in write-downs and allowances forinvestment assets contributed to the reduction of losses.
The full-year forecast remains unchanged from the beginning of the fiscal
year. However, there are some changes in the content of revenue. Someof the IPOs that we had expected in the second half will be postponed,
and we expect gains on the sale of shares to be lower than planned. On
the other hand, there has been a large number of willingness to purchasemega-solar projects. One reason for this is the growing social need forclean energy.
In addition, amid increasing uncertainty as a result of the coronavirus
crisis, the mega-solar projects have been praised that they have alreadyconfirmed their future power sales revenues. We plan to sell sevenprojects totaling 18.3 megawatts. In the second half of the fiscal year, we

3

plan to achieve our full-year earnings forecast by focusing on the sale of theseprojects and the realization of our planned sale of shares.
COVID-19’s impact on our Group, i.e. the impairment of investment assets, hasbeen limited until now and we expect it will likely continue that way.
In terms of the business progress of project investments, each business hasgrown and is shifting from the stage of planting seeds to the stage of growth.
Contributions to SDGs through investment activities have also increased.
In terms of Renewable Energy projects, the Biogas-Generating Food Recycling
Business has started operations. This business generates biogas from food waste
and reuses it for power generation.
In terms of Smart Agri Projects, sales of lettuce cultivated at our vegetable plant
are expanding steadily.
In terms of Healthcare projects, two group homes for people with disabilities
began operations.
In private equity investment, we made progress in strengthening collaboration withdomestic regional financial institutions and expanding our Asian network. One of
the fruits of these efforts was the newly-established fund in April. With regional
financial institutions in Hokkaido as investors, we support the globalization of small
and medium-sized enterprises based in Hokkaido.
In September, we entered into a business cooperation agreement with Maritime
Bank, which has 280 branches throughout Vietnam.
In the second half of the fiscal year, we will expand the scale of each business byfocusing on the implementation of investments, as well as the cultivation of new
projects those follow the vegetable plants and group homes.
In private equity, we plan to integrate our network in domestic regional financial
institutions with our Asian network to develop investment activities that link the tworegions, just as our Company name Japan Asia Investment suggests.
Finally, I would like to report on the relocation of the head office. In September
2020, we relocated our head office in Chiyoda-ku, Tokyo. As a result, while
keeping the total office rent at the same level as before, becoming a one-floor has
improved operational efficiency and improved the working environment.
The impact of expenses incurred in connection with the relocation of the head
office on our performance has already been factored into the full-year forecast.

3

4

Next, I will explain the results in comparison with the same period of theprevious fiscal year.
This is a highlight of P&L.
Operating revenues decreased 21.7%, to JPY541 million. In the same
period of the previous fiscal year, despite a loss on the sale of large
unlisted shares, the Company prioritized liquidation and executed sales. In
comparison, this quarter was mainly centered around the sale of listed
stocks, and the sale of unlisted stocks was small in size, which was afactor behind the decrease in revenues.
On the other hand, net income attributable to owners of the parent
amounted to a loss of JPY336 million. The loss was reduced by JPY145
million from the same period of the previous fiscal year. Gains on sales ofstocks increased due to the sale of highly profitable listed stocks. In
addition, there has been a significant decrease in valuation losses andprovisions. This was due to putting back a part of the allowances in thecurrent quarter. For the investees for which we have recorded allowancesin the past, we have reversed allowances for expected performance
improvements or expected increment of recovery amount.
The increase in SG&A expenses was due to one-time expenses
associated with the relocation of the head office.

5

This is a B/S highlight.
Total assets decreased 7.7% from the previous fiscal year to JPY14.5
billion.
Cash and deposits decreased by JPY400 million due to the repayment ofborrowings and the execution of investments and loans.
The balance of the project investment decreased by JPY500 million. The
decrease was attributable to distributions from projects that already soldelectricity, and the withdrawal from one project under construction due
declined profitability.
In addition, we are steadily repaying borrowings.
As a result, although the balance of cash deposits and project investment
assets against borrowings has decreased, we have secured a certain
level.

6

Next is cash flow.
Cash flow by operating activities amounted to JPY326 million, as a resultof return on investment, reaching profitability through steady progress.
Cash flow by investing activities amounted to JPY(13) million, mainly due
to the acquisition of fixed assets associated with the relocation of the head
office.
Cash flow through financing activities amounted to JPY(697) million due tothe repayment of borrowings. As the amount of repayment was reduced,
the amount of expenditure decreased from the previous fiscal year.
As a result, total cash flow indicate an outflow of JPY396 million, and thebalance of cash at the end of the fiscal year was JPY2.326 billion.
We fund new investments and recurring payments with the proceeds fromthe recovery of our investments, but we are currently paying down ourborrowings by reducing the cash balance on hand.

7

Next, we will explain the breakdown of operating revenues and operating
costs by item and by investment asset.
Private equity investment posted a decrease in revenue but an increase inprofit compared to the same period of the previous fiscal year.
Within operating revenues, sales of operational investment securities
decreased. This was due to downsizing the sale of unlisted shares. The
corresponding cost of operating investment securities sold declined morethan the decline in sales, which is due to the sale of highly-profitable listed
stocks.
In addition, write-downs and provisions in operating costs also decreased
due to the reversal of provisions. Equity in losses of partnerships
increased due to losses from other companies' funds, but this was offset
by an increase in profits.
In project investment, both revenue and profits increased from theprevious fiscal year.
While there were contributions to earnings from the mega-solar project,which began selling electricity, increasing upfront costs for the vegetable
plant lead to a rather small increase in profits.

89This section explains our full-year earnings forecasts.
These are details of the forecasts for the fiscal year ending March 2021.
The achievement rate of the business forecast for the first half was about
80% in terms of operating revenue. The final deficit was reduced by about
JPY100 million. Operating revenues fell short of expectations due tolower-than-expected stock prices for listed stocks and the lack of progressin sales. On the other hand, losses were reduced compared to
expectations due to the reversal of the allowance for investment losses.
There is no change in the figures for the full fiscal year. Operating
revenues are expected to be JPY3.25 billion and profits are expected to
be JPY180 million.
However, there are some changes to the content of revenue. At the
beginning of the fiscal year, the Company's policy was to earn a gain on
the sale of shares through domestic IPOs, and the Company did not
anticipate selling the project. However, we expect a portion of the IPOs to
be postponed and the gain on sale of shares to be lower for the full fiscal
year. In addition, gains on the sale of shares in the second half of the fiscal
year are expected to be centered on the sale of large-scale unlisted
shares overseas.

10

On the other hand, there has recently been a large number of willingness topurchase mega-solar projects. We recognize the reason for this is the recognitionof the growing social need for clean energy and the fact that future power sales
revenue from the projects is confirmed amid the increasing uncertainty caused by
the coronavirus crisis.
Accordingly, we plan to sell seven projects totaling 18.3 megawatts, including
partial sales. In the second half of the fiscal year, we will focus on selling theseprojects and realizing the planned sale of shares to achieve our full-year earnings
forecast.
Since most sales of shares and projects are expected to be executed in the 4Q,
we expect to be in the red throughout 3Q.

10

Next, we will explain cautionary statements when using the projected
performance figures.
Due to the nature of our business, it is difficult to forecast rational
investment gains and losses. Accordingly, we do not disclose earnings
forecasts. Nevertheless, we disclose as reference information theperformance estimates of the previous consolidated standards, whichwere formulated based on certain assumptions, in the hope that it will beof some help to investors.
The assumptions are stated in the summary of financial results. Therefore,
we hope that you will use the estimated values based on this assumption.
In addition, we will disclose in a timely and appropriate manner any events
that might be necessary to disclosed in the future.

11

12

This section explains the progress of our business in the first half of the
fiscal year and our action plan for the second half.
This is the progress of the project investment. In the first half of this fiscal
year, each project has made progress and we are confident in the growthof it. At the same time, we are increasingly contributing to SDGs throughour investing activities.
In terms of SDGs-recommended Renewable Energy, four new mega-solar
projects, five megawatts, began selling electricity. We also launched a
Food Recycling Business that produces biogas. Reuse food waste as
renewable energy. This effort is also contributing to SDGs, as SDGs arealso aiming to reduce waste. These details are described in the following
slides.
Regarding Smart Agri, we succeeded in cultivating sales channels for
major convenience stores. Sales of lettuce for salads grown without
pesticides are steadily expanding. In addition, we were able to seize theopportunity to expand HMR demand due to the coronavirus crisis andexpand sales for side dish items at supermarkets.
Vegetable Plants contribute to SDGs's goal of promoting inclusive andsustainable industrialization by providing solutions for problems with adeclining farming population and an aging population, rapid changes in13

crop yields due to climate change and food safety.
For Healthcare, two group homes for people with disabilities began operations inAugust. We will provide solutions to create inclusive, safe, and more comfortablecommunities and contribute to SDGs's goal of “promoting inclusive andsustainable urbanization.”
As for Distribution Centers, two projects in which we invested in the previous fiscal
year were able to determine the main investor, who would contribute the majorityof the development funds, as well as the lender. Thus, we are able to proceed with
development as scheduled.
By providing logistics facilities that are growing in demand as ecommerce
expands, we will contribute to the development of the robust infrastructures that
SDGs advocates. It also creates jobs within the facilities and contributes to theachievement of SDGs's goal of productive full employment.
The coronavirus crisis has prompted a significant acceleration in the pace of socialchange that people have long been aware of as necessary. Many of them are
related to SDGs. We expect this transformation to be a major investment
opportunity.

13This is a mega-solar project that began selling electricity in the first half ofthe fiscal year.
Power plants were completed in Akkeshi County, Hokkaido, and Ukiha
City, Fukuoka Prefecture. The latter farming-type plant called solar
sharing. We cultivate moss, which is used as a material for greening,under the panels. Mos Yamagata, a company with over 20 years ofexperience in the business, cultivates these.

14This is the Food Recycling Business that generates biogas.
We generate biogas from food waste and reuse it for power generation.
Our investee, Nishi Tokyo Recycle Center, is in charge.
The company takes food waste from factories and other Food-Related
Businesses in consideration, uses methane fermentation to reduce foodwaste by about 80%, and generates biogas in the process. Biogas is usedat the Hamura Biogas Power Plant as a renewable energy source.
In recent years, efforts have been made to reduce food loss, but it isdifficult at present to completely eliminate food waste. For this reason, we
recognize that this business, which does not dispose of waste as it is, but
recycles it as renewable energy, greatly contributes to the development ofa sustainable society by effectively utilizing resources.
Currently, the Company is vigorously promoting activities to procure wastefrom food manufacturers and other businesses.

15

This is an introduction to what kind of waste is procured specifically.
It is basically possible to accept waste as long as it is consumable byhumans, such as waste during the manufacturing process, products thathave expired or been collected, cut-offs of foodstuffs, vegetables that havefallen short of freshness, and the disposal of inventory items.
In addition, due to the high performance of the equipment for sorting
impurities from waste, it can be accepted even when it remains in plastic
containers or is packaged in vinyl, wrap, et cetera.

16

These are the group homes for people with disabilities.
Operations commenced in August in Hamamatsu City, Shizuoka
Prefecture and Hiroshima City, Hiroshima Prefecture. All of these wereconstructed by construction companies that have a proven track record of
constructing group homes in the region.
Social Inclu CO., LTD., our strategic investee, is responsible for theoperation of group homes.
The project in Hiroshima City was completed with a loan from the Kure
Shinkin Bank.
We have begun working on this business as a business that allows us toobtain financing from financial institutions. However, because this was a
new initiative for us, there were many difficulties until we got a loan from afinancial institution.
This time, Kure Shinkin Bank gained a deep understanding of the
profitability of the project and the social significance of group homes, andwe recognize that the first time when we were able to obtain loans was avery significant result.
Going forward, we plan to increase the number of buildings by actively
incorporating financing from other regional financial institutions.

17

These are the Distribution Centers.
In the previous fiscal year, we invested in projects in Koshigaya City,
Saitama Prefecture, and Atsugi City, Kanagawa Prefecture. Project
development is conducted by KIC Holdings, a strategic investee.
Both facilities were financed by the main investor who will contribute themajority of the development funding in the first half of this year. This was
the result of us getting praised for the good location and the convenience
regarding transportation.
At the Koshigaya City project, financing from financial institutions was also
provided and construction began. For the Atsugi City facility, the user isalready determined for the post-completion period. At the Koshigaya City
facility, we are currently recruiting companies that will become the user
after completion. In addition, we are recruiting buyers for both facilities
after completion.
In the midst of the coronavirus crisis, demand for logistics facilities istightening as ecommerce expands due to new lifestyles and online
consumption. Therefore, we will continue to focus on investing inDistribution Centers in the future.

18

This is a list of action plans for the second half of the project investment.
As I have explained, in Renewable Energy, we will proceed with theprocurement of food waste and stabilize the supply of biogas before
starting operation of the Hamura Biogas Power Plant.
For Mega-solar Projects, we will sell seven projects that are alreadygenerating power.
For Smart Agri, we will set a path toward achieving profitability at the
Sasayama Plant and work on the second lettuce plant. We will also
searching for potential customer for strawberries grown at plants operated
by MD-Farm, our strategic investee. This is described in detail in thefollowing slides.
For Healthcare, we will develop two new group homes for the disabled.
We will also consider schemes for expanding our scale in cooperation withfinancial institutions. We plan to invest in one elderly care facility.
For Distribution Centers, we plan to make new investments totaling
JPY1.2 billion in the second half of the fiscal year, for developing new
facilities and searching for potential users and potential buyers for our
existing facilities.

19

This is an explanation of the strawberry plant cultivation mentioned earlier.
Our strategic investee, MD-Farm, is a Niigata-based venture company.
Domestic strawberries are seasonal in open-field cultivation, and thetiming of supply is limited to six months, from late November to early May.
Nevertheless, their wholesale unit prices and wholesale prices are thelargest among the major domestic fruits and vegetables.
Therefore, if we are able to cultivate it at our vegetable plants and sell it
throughout the year, including during the off-season of summer, we expect
there to be significant potential demand.
MD-Farm is a closed vegetable plant that grows domestic strawberryvarieties stably over the course of the year. The cultivation of strawberries
at the plant has been technically difficult for many years, but it has beenrealized through the technology developed independently by the company.
It can provide high-quality, freshness, and safe strawberries growncompletely without pesticides.
Currently, we are in the trial production stage, and we are recruiting sales
candidates for the time of full-scale production. We assist MD-Farm with
their business by introducing prospective financing sources and sales
candidates. Going forward, we plan to use the knowledge we have gainedin our vegetable plant to support the initial stages of this business.

20

Finally, I will explain the progress of the Private Equity Business and theplan for the second half.
We are currently strengthening our ties with domestic regional financial
institutions and expanding our Asian network. In the future, we will
combine these two to enable regional financial institutions to use our Asian
network as a support tool and information acquisition tool for business
partners. Our policy is to create new business opportunities by combining
the demands of regional financial institutions with our human resources,
experience and networks.
One of the fruits of this is the fund, which was newly-established in April.
With regional financial institutions in Hokkaido as investors, we support theinternationalization of small and medium-sized enterprises based in
Hokkaido. In the second half of the fiscal year, we plan to makeinvestments from these funds.

21

To strengthen our Asian network, in September we concluded a businesscooperation agreement with Maritime Bank, which has 280 branches
throughout Vietnam.
Going forward, through operational cooperation, we will provide banking
services and other capital alliance opportunities to Japanese companies
operating in Asia that are interested in M&As with Vietnamese companies,
as well as enabling other forms of cross-border business development.
The Maritime Bank has provided a large number of information on the
M&A and financing demands of Vietnamese companies before weconcluded the business cooperation agreement. We are currently
considering methods to respond to these demands.
In the second half of the fiscal year, our policy is to develop investment
activities and M&A Businesses based on the demands arising from thelarge number of business networks, including Maritime Bank. We will also
continue to focus on expanding our network in China, the largest market in
Asia.
This was my explanation. Thank you for your attention.
[END]

22

5. Appendix

Renewable energy projects

P24

List of project oriented investments

P25

Break down of private equity investment balance

P27

AUM of Funds, Investment balance & balance of operational
investment securities

P28

Funds & investment activities

P29

Business results & financial position

P30

Break down of operating revenue & operating cost

P31

Business field

P32

Core competence

P33

Profit structure

P34

Company data

P36

- 23 -

https://www.jaic-vc.co.jp

5. Appendix - Renewable energy projects as of September 30, 2020

Mega solar projects
Started electricity sales 16 projects (18 power plants) 53.2 MW
Under construction or under planning
6 projects 32.6 MW
Total
22 projects (24 power plants) 85.8 MW
attributable to JAIC
38.2 MWTransfers to buyers other than the funds operated by the JAIC Group

24 projects

133.8 MW

*Underlined projects are invested from
JAIC Solar Fund L.P., Ⅱ

Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
1 project 2.4MW
2 projects 5.3MW
Miyagi, Solar,
1 project 2.4MW

Fukuoka, Solar
1 project, 3
power plants
3.0MW in total

Kumamoto, Solar
1 project 3.1MW

Hokkaido, Solar,
4 projects 24.4MW

Fukushima, Solar,
2 projects 3.9MW
1 project 2.4MW
Tokyo, Bio gas,
1project 1.6MW
Kagawa, Solar Mie,
4 projects 8.7MW Woody biomass, 1 project 2.0MW
Mega solar,
1 project 21.8MW
Wind power,
1 project at most 25.2MW

Tochigi, Solar,
3 projects 6.0MW
Kanagawa, Solar,
1 project 2.4MW* Since our investment ratio differs in each project, the amount of JAIC’s investment or revenues from mega solar projects that are attributable to JAIC are notnecessarily linked to the MW figure of the project.
https://www.jaic-vc.co.jp- 24 -

5. Appendix - List of project oriented investments (as of September 2020)
Type ofproject
Solar

No.

FIT
[tax excluded, ¥]Total amount ofproject [¥ bn.]1

Nishiki-cho, Kuma-gun, Kumamoto(*)

Name of power plant or Location

Generation
Capacity [MW]3.1

Started electricity sales in Dec. 201540

approx. 1.05

2

Nomaike solar power plant(*)

2.4

Started electricity sales in May. 201736

approx. 0.8

3

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

4Mitakabeike solar power plant(*)

1.5

Started electricity sales in Sep. 201732

approx. 0.5

5Iwate Ichinoseki solar park(*)

2.4

Started electricity sales in Jan. 201836

approx. 0.8

6

Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

7

Nakaoudaike solar power plant(*)

2.4

Started electricity sales in Apr. 201836

approx. 0.86

8

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

9

Higashioudaike solar power plant(*)

2.4

Started electricity sales in Jul. 201836

approx. 0.86

10

Ichinosekishi Suzugasawa solar power plant

2.7

Started electricity sales in Oct.. 2018

36

－

11

Kami solar park

2.4

Started electricity sales in Oct. 201836

approx. 0.96

12

Mombetsu-shi Kodo solar power plant

15.7

Started electricity sales in Feb. 202040

approx. 6.6

13

Yokotsunooka solar power plant

2.0

Started electricity sales in Mar. 2020

36

－

14

Mie

21.8

Under construction or Under planning

24

－

15

Fukushima

2.4

Under construction or Under planning

32

－

16

Hirono solar park

2.7

Started electricity sales in Feb. 2020

40

－

17

Akkeshi Luke Supor Solar Power Plant

2.3

Started electricity sales in May 2020

40

－

18

Kanagawa

2.4

Under construction or Under planning

32

－

19

Ukiha-shi, Shirakabe Solar Power Plant
Ukiha-shi, Mizunosato Solar Power Plant
Ukiha-shi, Minou Alps Solar Power Plant

Started electricity sales in Mar.-May 2020

36

－

20

Tochigi

2.0

Under construction or Under planning

36

－

21

Tochigi

2.0

Under construction or Under planning

32

－

22

Tochigi

2.0

Under construction or Under planning32－

3.0 in total

Current status

Total 85.8MW [attributable to JAIC 38.2MW]- 25 -

https://www.jaic-vc.co.jp

5. Appendix - List of project oriented investments (as of September 2020)
Type of project

No.

Woody biomass
Bio gas1

2Wind power

Total amount of project [¥
bn.]

2.0

Started electricity sales in Jan. 2018

－

－

Tokyo

1.6

Preparing to start operation

39－

Food recycle company that generates
biogas for power generation

－

－

0.03

Started electricity sales in Nov. 201839－

At most 25.2

Under construction or Under planning

22－

Aomori Touhokumachi solar power plant

Generation Capacity[MW]

Current status

Tambasasayama-shi, Hyogo－

Started operation in Mar. 2019－

Approx. 0.7

1

Hamamatsu-shi, Shizuoka－

Started operation in Aug. 2020

－

－

2

Utsunomiya-shi, Tochigi－

Under construction or Under planning

－

－

3

Hiroshima-shi, Hiroshima－

Started operation in Aug. 2020

－

－

Aichi

－

Opened*investment in building which has alreadystarted operation

－

－

1

Koshigaya-shi, Saitama－

Under construction or Under planning

－

－

2

Atsugi-shi, Kanagawa－

Under construction or Under planning－－

Commercial
building
Logistics
warehouse

Location

Mie

Vegetable plantGroup home

FIT
[tax excluded, ¥]Matsusaka-shi, Mie*Projects that are invested from JAIC Solar Fund L.P., Ⅱ

https://www.jaic-vc.co.jp- 26 -

5. Appendix - Break down of private equity investment balance

Investment balance : 95 companies, ¥8.4 bn.
【Breakdown by area】【Breakdown by industry】
Others;
12co.

China,HK,
Taiwan&others ;Japan;
51co.

【Breakdown of QOL】

QOL;
24co.

Service; 1.6bn.
13co.

3.3bn.

Total
Total
1.0bn.
44co.
95 companies
95 companies
3.9bn. Precision
4.5bn. ¥8.4bn.
¥8.4 bn.
machine;6co.

0.7bn.

1.8bn.IT;
40co.

Average investment amount per company (unit: ¥ million):
Japan 76, China,HK&Taiwan etc. 102 / QOL 136, IT 44- 27 -

https://www.jaic-vc.co.jp

5. Appendix - AUM of Funds, Investment balance & balance of operational
investment securities

Investment by fuds
5.6

AUM of funds¥16.5 bn.

7.3

3.2

0.4

Investment balance¥14.4 bn.

Principal investment
by JAIC 8.8

1.6

Other
investors'
interests in
funds
4.0
Other than consolidated projects & PE investments
Consolidated projects

Balance of
operational investment securities(previous accounting standard)

6.6

2.2
※

1.6 0.4¥10.8 bn.
Balance of
operational investment securities(fund consolidated
accounting standard)¥9.8 bn.

https://www.jaic-vc.co.jp

JAIC's interests in funds
OthersCash etc. in Funds
Accumulated profits, losses & distributions

6.6

1.6 1.10.5

Uncalled commitments to Funds
Note:
Of the principal investment by JAIC, the investment portion in aconsolidated project is deemed investment in a subsidiary under
the fund consolidated accounting standards, and the investment isoffset.
On the other hand, renewable energy power generation andvegetable plant facilities held by consolidated projects are booked
as property, plant and equipment under the fund consolidated
accounting standard.

- 28 -

5. Appendix - Funds & investment activities(JPY million)

16/3

17/3

18/3

19/3

20/3

20/3(2Q)

21/3(2Q)

New & increased funds

5,201

500

1,000

2,000

1,359

-

151

AUM of funds - total

39,33528,753

19,15016,494

17,39015,94816,556

AUM of funds - JAIC

14,004

9,427

5,867

5,344

5,163

5,131

4,928

New investnemts (Total)

4,093

4,315

3,887

3,749

3,374

1,745

533

Balance of investments (Total)

18,783

16,55813,981

13,951

15,101

14,67814,376

New investnemts (private equity)

1,304

1,131

1,205

136

1,224

824

158

Balance of investments (private Equity)

15,061

11,981

10,398

8,437

8,405

8,260

8,375

New investnemts (project oriented investment)

2,788

3,184

2,681

3,612

2,150

920

374

Balance of investments (project oriented investment)

3,722

4,576

3,582

5,514

6,696

6,418

6,000

- 29 -

https://www.jaic-vc.co.jp

5. Appendix - Business results, financial position (Previous accounting standards)(JPY million)

16/3

17/3

18/3

19/3

20/3

20/3(2Q)

21/3(2Q)

Business results
Operating revenues

4,043

3,926

5,403

2,475

2,760

691

541

Operating gross profit

1,554

2,176

2,328

1,286

1,359

108

227

SG&A expenses

1,472

1,339

1,311

1,109

1,094

530

544

Operating income

82

836

1,017

177

265

(421)

(316)

Ordinary income

612

726

954

83

140

(483)

(335)

Net income

597

553

874

578

302

(481)

(336)

8,202

6,213

7,308

5,564

3,920

2,825

3,515

3,722

4,081

3,582

5,514

5,437

6,667

4,915

100

100

373

373

1,005

745

1,155

8,126

7,256

5,657

4,765

4,282

4,577

3,926

Financial position
Cash and deposits
Operational investment securities and operatingloans of project oriented investment
Operational investment securities of strategic
investment in partner companies
Operational investment securities after
deducting allowance for possible investment loss
(Private equity except strategic investment in
partner companies)
Loans payable, bonds & bonds with subscription

16,91014,128

11,954

9,784

8,166

8,689

7,469

Total shareholders' equity

4,976

5,686

6,545

6,840

7,223

6,507

6,732

Total assets

22,68020,305

19,22017,30515,80015,761

14,580rights to shares

https://www.jaic-vc.co.jp- 30 -

5. Appendix - Statement of Income - break down (Previous accounting standard)(JPY:million)

16/3

17/3

18/3

19/3

20/3

20/3(2Q)

21/3(2Q) Change(%)

１． Fund management operation
Fund management fees and others

441

364

277

241

199

107

82

Success Fees

288

101

86

-

-

-

-

-

Operating revenue

729

466

364

241

199

107

82

(23.1%)

Operating cost

(23.1%)

-

-

-

-

-

-

-

-

729

466

364

241

199

107

82

(23.1%)

2,954

2,275

3,219

1,746

2,349

406

232

(42.8%)

345

1,159

1,677

429

172

155

198

27.4%

3,300

3,434

4,897

2,176

2,521

562

431

(23.3%)

1,863

1,423

2,469

554

965

356

85

(75.9%)

569

274

562

579

245

160

(62)

-

47

46

36

49

184

61

285

361.8%

2,481

1,744

3,069

1,182

1,395

579

309

(46.6%)

818

1,690

1,827

993

1,125

(16)

122

-

Operating revenue

13

25

142

57

40

20

26

29.5%

Operating cost

7

6

5

6

5

2

3

44.1%

Operating gross profit

5

19

136

51

34

18

23

27.5%

Operating revenues

4,043

3,926

5,403

2,475

2,760

691

541

(21.7%)

Operating cost

2,488

1,750

3,074

1,188

1,401

582

313

(46.2%)

Operating gross profit

1,554

2,176

2,328

1,286

1,359

108

227

109.1%

Operating gross profit
２． Investment operation
Proceeds of sales of securities (A)Fund interests income etc.
Operating revenue
Cost of securities sold (B)Investment write-oﬀs and Provision for allowancefor possible investment losses ( C)Fund interests losses etc.
Operating cost
Operating gross profit
３． Others

Total- 31 -

https://www.jaic-vc.co.jp

5. Appendix - Business field

Private equity investment

Strategic investment

Project investment

JAIC provides growth capital in venturecompanies and small and medium sizedenterprise (“SME”) with high growth potential,
as well as to SMEs with succession problem.
After the investment, JAIC is committed toprovide various support to achieve growthstrategies of the company by utilizing
JAIC’s resources in Japan and elsewhere in
Asia.

Strategic investment in partnercompanies that correspond toselected themes of JAIC.
JAIC provides “hands-on” support topartner companies to improve its
business promotion and financing
activities, etc.

JAIC has been investing to renewable energy
industries represented by solar energy as well as tohealthcare industry such as nursing facilities andfacilities for persons with disabilities. In addition to
above, JAIC
is determined to invest to new areas such as smartagri business represented by vegetable plant andlogistic industry such as distribution center where
JAIC’s accumulated expertise can be leveraged.

https://www.jaic-vc.co.jp- 32 -

5. Appendix - Core competence
Historical background in Asian
regionSince its establishment in 1981 by the Japan
Association of Corporate Executives (Keizai
Doyukai), JAIC has contributed to economic
exchange between Japan and Asian
countries over 35 years which led to highname recognition.

Capability to capture up-to-datebusiness information
Through the activity of exploringpromising companies and investment
opportunities, JAIC has capability tocapture highly professional and cuttingedge information on various corporates.

Expertise to structure sophisticatedfinance scheme
Wide range of network with venture companies
JAIC has track record of leading more than 300 invested venturecompanies to “Going Public”. Through the long time investment
activities, JAIC enjoys close relationship with wide range ofventure companies. Based on this intangible asset, JAIC is
utilizing the network to create value for invested companies
through business matching and cultivating new business theme
for JAIC’s own.

JAIC’s accumulated invested volume insideand outside of Japan is Japanese Yen 330
billion.
For the project oriented investment, in
addition to providing direct equity investment,
JAIC has been arranging various financing
scheme utilizing project-finance approachand leverage financing together with financial
institutions.
- 33 -

https://www.jaic-vc.co.jp

5. Appendix - Profit structure● Private equity investment

There are the following two types of investment
capital:・Contribution from JAIC’s cash reserves
・Capital that is entrusted for investment byfund investors in Japan and abroad throughthe fundJAIC also invests in the fund and acquires
capital gains according to its investment ratio.

● Renewable energy project investment

The power generation operator procures funds
for the construction of power plants by thefollowing two ways and owns the power plants:
・Investment by JAIC and other investors
・Loans from financial institutions
The generated power is purchased by powercompanies at FIT.
JAIC and other investors obtain stable revenue
from electricity sales according to theirinvestment ratios.

https://www.jaic-vc.co.jp- 34 -

5. Appendix - Profit structure● Fund management
In fund management, there are thefollowing two types of fees:
・Management fee received ascompensation for recurring
management and operation
・Success fees received according to thefund’s performance- 35 -

https://www.jaic-vc.co.jp

5. Appendix - Company data (as of September 30, 2020)
Company name

Japan Asia Investment Co., Ltd.

Head office

2F Medical Friend Building, 3-2-4 Kudn-kita, Chiyoda-ku, Tokyo 1020073, Japan

Abbreviation; JAIC

Established

July 10, 1981

Paid-in capital

5,426 million yen

Listed market

Tokyo Stock Exchange, 1st Section (Securities code 8518)

Employees

37 (Consolidated) /21 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

Chairman of the Board :Yoshiaki Kawamata [Outside/Independent]
President & CEO:Tetsuro Shimomura
Managing Executive Officer in charge of Investment Group:Masafumi Hatta
Chairman of Audit & Supervisory Committee:Kazunori Omori
Member of Audit & Supervisory Committee:Hitoshi Yasukawa [Outside/Independent]:Tadashi Nunami[Outside/Independent]:Harumi Katagiri[Outside/Independent]

https://www.jaic-vc.co.jp- 36 -

JAIC
Japan Asia Investment Co., Ltd.
https://www.jaic-vc.co.jp/
Contact to:
Kenji Kishimoto, Executive Officer
Miyuki Maruyama, Administration GroupIR e-mail : ir@jaic-vc.co.jp

The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued
accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties including changes to economic
circumstances may cause results and projections to differ materially from those presented in the document.
The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAIC.
The figures in this document is based on consolidated financial statements.
https://www.jaic-vc.co.jp- 37 -