Japan Asia Investment Co., Ltd.
Fund Consolidation

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

Consolidated Financial Results
for the Second Quarter Ended September 30, 2018
[Japanese Standards](Summary of Japanese announcement)
November 12, 2018
Company name:

Japan Asia Investment Co., Ltd.

Listed on:First Section of the Tokyo Stock Exchange (Stock code: 8518)

Head office:Tokyo

Representative:

Tetsuro Shimomura, President and CEO

Contact:

Kenji Kishimoto, Executive Officer

URL: http://www.jaic-vc.co.jp/

Tel: +81-3-3259-8518 (main)
Scheduled date for submission of quarterly report: November 12, 2018
Scheduled date for start of payment of dividends: —The additional materials of the Financial Results: Yes
The briefing session of the Financial Results: Yes(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the second quarter ended September 30, 2018 (April 1, 2018 to September 30, 2018)(1) Consolidated results of operations (cumulative total)(Percentages indicate year-on-year increase or decrease)
Operating revenue

Operating income

Ordinary income

Millions of yen % change

Millions of yen % change

Millions of yen % change

Profit attributable toowners of parent
Millions of yen % change

For six months ended
September 30, 2018

1,189

(76.5)

(390)

―

(481)

―

(535)

—

For six months ended
September 30, 2017

5,062

165.7

582

237.4

446

2,052.5

560—(Note) Comprehensive Income
For six months ended September 30, 2018: (560) millions of yen (－%)
For six months ended September 30, 2017: 216 millions of yen (－%)

Yen

Diluted net income
per shareYen(30.22)

―

31.68

31.62

Net income per share
For six months ended
September 30, 2018
For six months ended
September 30, 2017(2) Consolidated financial position

As of September 30, 2018
As of March 31, 2018

Total assets

Net assets

Millions of yen
28,432Millions of yen
7,712

Equity ratio
%

Yen

20.9

335.71

27,184

8,053

23.9

367.34(Reference) Total shareholders' equity
As of September 30, 2018: 5,943 millions of yen As of March 31, 2018: 6,503 millions of yen

1

Net assets per shareJapan Asia Investment Co., Ltd.
Fund Consolidation
2. Dividends(Base date)Year ended March
31, 2018
Year ending March
31, 2019
Year ending March
31, 2019 (forecast)End of first quarter
Yen

Dividends per share
End of third quarter
Yen

End of second quarter
Yen

—

0.00

—

0.00

End of year
Yen

Year
Yen

—

0.00

0.00

—

0.00

0.00

(Note) Revision of dividends forecast during the current quarterly period: None
3. Outlook for the fiscal year ending March 31, 2019(April 1, 2018 to March 31, 2019)
The private equity investment business conducted by the Group (including investment partnerships) is significantly affected bychanging factors such as stock markets, given the characteristics of the business. In addition, it has been difficult to forecast results
reasonably in the rapidly changing environment. Therefore we do not disclose the results forecast. For the convenience ofinvestors and shareholders, however, we disclose “result forecast consolidated under the Previous Accounting Standard” eventhough it doesn’t have enough rationality. For details, please refer to “2. Outlook for the fiscal year ending March 31, 2019 (April 1,2018 to March 31, 2019)” on page 15.
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 - company (company name: -)](2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting principles, accounting estimates and correction of prior period errors(i) Changes in accounting principles due to revisions to accounting standards: Yes(ii) Changes other than shown in (i) above: None(iii) Changes in accounting estimates: None(iv) Correction of prior period errors: None
For details, please refer to “3. Consolidated Financial Statements (5) Notes on Quarterly Consolidated Financial Statements(Change in accounting policy)” on page 13.
(4) No. of shares issued and outstanding (common stock)(i) Shares issued and outstanding at
Six months ended
the end of each period (including
September 30 2018:
treasury stock)(ii) Shares of treasury stock at theSix months ended
end of each period
September 30, 2018:(ii) Average number of shares
Six months ended
during the period (cumulative
September 30 2018:
quarterly consolidated period)

17,884,392
sharesYear ended
March 31, 2018:

17,884,392
shares181,009
sharesYear ended March
31, 2018:

181,009
shares17,703,383
sharesSix months ended
September 30,2017

17,688,620
shares*The above quarterly financial results are not subject to a quarterly review required under the Financial Instruments andExchange Act.
*Cautionary Statements with Respect to Forward-looking Statements and Other Notes
The additional materials of the Financial Results for the second quarter ended September 30, 2018 will be released on our
website on November 12, 2018.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements inthis document are based upon the information currently available to the Group at the time of writing and certain
assumptions. The achievement is not promised. Various factors could cause actual results to differ materially from theseresult forecasts.

2

Japan Asia Investment Co., Ltd.
Fund Consolidation

1. Business Performance and Financial Condition(1) Breakdown of operating revenue and operating cost
(Millions of yen)
For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)
Total operating revenue (A)For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)

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

5,062

1,189

8,303

Management fees

83

83

177

Contingency fees

50

―

55

4,350

209

6,747

Fund interests income etc.

533

871

1,124

Income gains

34

14

68

Other operating revenue

9

11

130

Total operating cost (C)

3,790

897

5,656

3,336

209

4,787

361

437

630

Fund interests losses etc.

88

247

232

Other operating cost

2

3

5

Operating gross profit (A) - (C)

1,272

292

2,646

Realized capital gains (B) - (D)

1,013

0

1,959

651

(436)

1,329

For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)

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

Proceeds of sales of operational
investment securities (B)Cost of securities sold(D)

Investment write-offs & Provision
for allowance for possible
investment losses (E)Investment income(B) - (D) – (E)(2) Cash flows(Millions of yen)
For the year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)

Cash flow from operating activities

(519)

458

1,870

Cash flow from investing activities

196

65

238

Cash flow from financing activities(1,659)(1,668)(2,173)

2,825

3,599

4,757

Cash and cash equivalents at the endof period

3Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Operational Investment Securities and Allowance for Possible Investment Loss
(Millions of yen)
As of September 30, 2017
AmountAs of September 30, 2018
(B)/(A)(B)/(A) (%)
Amount(%)

As of March 31, 2018
(B)/(A)
Amount(%)

Operational Investment Securities(A)

14,586

―

9,634

―

9,394

―

Allowance for Possible Investment
Loss (B)(2,550)17.5(1,356)

14.1(1,535)

16.3(4) Breakdown of Loans payable(Millions of yen）
As of September 30, 2017

As of September 30, 2018

As of March 31, 2018

Total of loans payable

18,31919,81718,367

Non-consolidated base loans
payable12,468

10,288

11,954Loans payable of SPC etc.
by project finance

5,850

9,528

6,412

4

Japan Asia Investment Co., Ltd.
Fund Consolidation

2. Business Position(1) Investment activities (JAIC+Funds)i) Breakdown of new investment
For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)
AmountNumber of(Millionsofcompaniesyen)

For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)
Number ofAmountcompanies (Millions ofyen)

For the year ended
March 31, 2018(from April 1, 2017 toMarch 31, 2018)
Number ofAmountcompanies (Millions of
yen)

Area
Japan

14

1,970

6

1,373

20

3,639

China, Hong Kong, Taiwan

2

139

1

86

3

191

Southeast Asia

-

-

-

-

-

-

Others

1

56

-

-

1

56

8

1,512

5

1,353

11

2,681

9

653

2

106

13

1,205

2

190

1

86

5

692

4

231

-

-

4

231

1

146

-

-

1

146

2

84

1

20

2

84

-

-

-

-

1

50

17

2,166

7

1,459

24

3,887

Industry
Project Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
OthersTotalii) Balance of investment
As of September 30, 2017
Number ofcompanies

Amount(Millions of
yen)

As of September 30, 2018

As of March 31, 2018

Number ofcompanies

Amount(Millions ofyen)

Number ofAmountcompanies (Millions of
yen)

Area
Japan

127

12,791

88

8,590

97

7,817

China, Hong Kong, Taiwan

47

6,046

41

4,643

45

5,912

Southeast Asia

5

189

5

189

5

189

Others

7

61

7

61

7

61

30

6,998

25

4,672

24

3,582

156

12,090

116

8,812

130

10,398

34

4,046

29

3,540

30

4,156

69

3,340

54

2,380

58

2,581

10

1,135

6

518

8

863

19

1,587

14

1,153

16

1,242

24

1,980

13

1,219

18

1,555

Industry
Project Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
OthersTotal
186
19,089141
13,485154
13,981Note:
1. QOL (Quality of Life); Biotechnology, Medical Service, Welfare Service, Medical Device, Drug Medicine, etc.
2. Investments in funds managed by third parties other than JAIC Group in which the JAIC Group is not involved in the
management, are not included.
5

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

Japan
Overseas
Total

For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)1 company
1 company

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

For the year ended
March 31, 2018(from April 1, 2017
to March 31, 2018)
1 company
1 company
2 companiesii) First price multiple
For six months ended
For six months ended
For the year ended
September 30, 2017
September 30, 2018
March 31, 2018(from April 1, 2017(from April 1, 2018(from April 1, 2017
to September 30, 2017)
to September 30, 2018)
to March 31, 2018)Japan
3.1 times
Overseas
3.2 times
3.2 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 general
waste

Head
quarters
China

Japan

For six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
No applicable items
From the end of the second quarter to date for filling this reportCompany
Date ofMarketName
IPO

VALUENEX Inc.

30-Oct-18

TSE Mothers

Business

Head
quarters

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

Japan(3) Management of Investment Funds (Funds for which JAIC and its Group are responsible for management
and provision of essential information)i) Balance of funds under management
As of September 30,
2017

As of September 30,
2018

Total commitment amount in
23,29917,329investment funds (Millions of yen)
Total commitment amount of JAIC
7,298
5,584
group (Millions of yen)
No. of funds
15
11
Note: Funds being wound up after their maturity are not included in the data above.
6

As of March 31, 201819,1505,867
12Japan Asia Investment Co., Ltd.
Fund Consolidationii) Funds newly established or whose assets were increased
For six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Assets increased
1,000
1Increase in fund value (Millions of yen )‐No. of funds‐

For six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Assets increased‐

Increase in fund value (Millions of yen)‐

No. of funds

600
1

For the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Assets increased
1,000
1Increase in fund value (Millions of yen)‐

No. of funds‐iii) Details of funds newly established or whose assets were increased
For six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)
Total commitment amount
Date of
Name of fundin investment funds
Main investment targets
establishment（Millions of yen）
Succession Investment
June 2017
1,000
SMEs in Japan which has successor problem
Limited Partnership, I
For six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
Date of
Increase in fund value
Name of fundassetsMain investment targets（Millions of yen）
increased
Succession Investment
June 2018
600 (Note)
SMEs in Japan which has successor problem
Limited Partnership, I(Note) In October 2018 Succession Investment Limited Partnership, I increased its assets of 1,400 millions of yen
through additional solicitation for subscription. Total commitment amount of the Fund increased up to 3,000 millions ofyen.
iv) Funds to reach maturity within three years of the fiscal year-end
For the year ending
For the year ending
March 31, 2019
March 31, 2020
(from April 1, 2018 to(from April 1, 2019 toMarch 31, 2019)
March 31, 2020)
Total commitment amount in
5,496
5,753
investment funds (Millions of yen)
No. of funds

4

3

For the year ending
March 31, 2021
(from April 1, 2020 toMarch 31, 2021)
1,980
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.

7

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 September 30, 2018

AssetsCurrent assets
Cash and deposits

9,019

6,380

Operational investment securities

9,394

9,634

Allowance for investment losses(1,535)(1,356)

Operating loans

204

204

Other

614

717

Allowance for doubtful accounts
Total current assets

(39)

（0）

17,65815,580Non-current assets
Property, plant and equipment
Buildings and structures29

29

Accumulated depreciation

(15)

(15)

Buildings and structures, net

14

14

4,223

7,789

Machinery and equipment
Accumulated depreciation

(257)

(474)

Machinery and equipment, net

3,965

7,314

Vehicles, tools, furniture and fixtures

70

70

Accumulated depreciation

(55)

(57)

Vehicles, tools, furniture and fixtures, net

14

12

Land

22

22

Construction in progress

3,065

2,962

Total property, plant and equipment

7,083

10,326

Other

586

669

Total intangible assets

586

669

1,454

1,380

Claims provable in bankruptcy, claims provable inrehabilitation and other

89

86

Other

331

406

Intangible assets

Investments and other assets
Investment securities

Allowance for doubtful accounts

(18)

(18)

Total investments and other assets

1,856

1,855

Total non-current assets

9,526

12,851

Total assets

27,18428,4328

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

As of September 30, 2018

Liabilities
Current liabilities
Short-term loans payable

2,222

1,426

Accrued expenses

290

219

Income taxes payable

61

59

Provision for bonuses

51

41

Provision for loss on liquidation of subsidiaries andassociates

－

63

Other

80

42

2,706

1,851

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

16,144

18,391

Deferred tax liabilities

18

27

Net defined benefit liability

112

119

Asset retirement obligations

149

329

Total non-current liabilities

16,424

18,868

Total liabilities

19,131

20,720Capital stock

5,426

5,426

Capital surplus

3,408

3,408

Retained earnings(2,529)(3,064)

Treasury shares

(353)

(353)

Total shareholders' equity

5,951

5,416

Valuation difference on available-for-sale securities

29

100

Foreign currency translation adjustment

522

426

Net assets
Shareholders' equity

Accumulated other comprehensive income

Total accumulated other comprehensive income

551

526

Share acquisition rights

17

19

Non-controlling interests

1,532

1,749

Total net assets

8,053

7,712

Total liabilities and net assets

27,18428,4329

Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated Statements of Income(Millions of yen)
For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)

For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)
Operating revenue

5,062

1,189

Operating cost

3,790

897

Operating gross profit

1,272

292

Selling, general and administrative expenses

690

682

Operating profit (loss)

582

(390)

Non-operating income
Interest income

1412

Dividend income2416

Foreign exchange gains－

67

Miscellaneous income

76

Total non-operating income

46

103

177

192

Foreign exchange losses

2－

Miscellaneous loss

22

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit (loss)

182

194

446

(481)

Extraordinary income
Gain on sales of investment securities－

4

Gain on sales of non-current assets

0－

Subsidy income

217－

Insurance income

－

34

217

39

Loss on valuation of investment securities－

4

Loss on redemption of investment securities

80

0Provision for loss on liquidation of subsidiaries andassociates

－

63

Other

0

0

Total extraordinary income
Extraordinary losses

Total extraordinary losses

81

68

Profit (loss) before income taxes

582

(511)

Income taxes - current

65

9Total income taxes

65

9Profit (loss)

516

(520)

Profit (loss) attributable to non-controlling interests

(43)

14

Profit (loss) attributable to owners of parent

560

(535)

10

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income
For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)
Profit (loss)

516(Millions of yen)
For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)(520)

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

(221)

83

Deferred gains or losses on hedges

(162)

－

Foreign currency translation adjustment

64

(119)

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

19

(3)

Total other comprehensive income

(300)

(39)

Comprehensive income

216

(560)

Comprehensive income attributable to owners of parent

349

(559)

Comprehensive income attributable to non-controllinginterests

(132)

(0)

Comprehensive income attributable to11

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Cash Flows(Millions of yen)
For six months ended
September 30, 2018(from April 1, 2018
to September 30, 2018)

For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)
Cash flows from operating activities
Profit (loss) before income taxes

582

Depreciation

(511)

3

8

Increase (decrease) in allowance for investment loss

124

(237)

Increase (decrease) in allowance for doubtful accounts

1

(41)

Increase (decrease) in provision for bonuses

2(9)

Increase (decrease) in net defined benefit liability

37Interest and dividend income

(26)

(18)

Interest expenses

113

94

Loss (gain) on redemption of investment securities

800Loss on devaluation of operational investment securities

0364

Decrease (increase) in investment securities for sale

(1,038)144

Decrease (increase) in operating loans receivable

(49)

－

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

19

8

Payment for purchase of investment funds(1,694)(257)

Dividends from investment funds

1,159

697

Increase (decrease) in investment funds of noncontrolling interest

(23)

(13)

Other, net

171

(3)

Subtotal

(571)

232

Interest and dividend income received

26

18

(156)

(131)

(19)
201
(519)

(13)
352
458

Purchase of intangible assets

(4)

(29)

Purchase of investment securities

(7)

(15)

Proceeds from sales of investment securities

071

Proceeds from redemption of investment securities

219

39

Other, net

(11)

（0)

Net cash provided by (used in) investing activities

196

65

Repayments of long-term loans payable(1,659)(1,665)

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

0(1,659)(3)(1,668)(7)(13)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(1,989)4,815(1,158)
4,757

Cash and cash equivalents at end of period

2,825

3,599

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

Cash flows from financing activities

Effect of exchange rate change on cash and cash
equivalents

12Japan Asia Investment Co., Ltd.
Fund Consolidation(5) Notes on Quarterly Consolidated Financial Statements(Notice Concerning Notes on Matters Regarding the Assumption of Going Concern)
No applicable items(Notice Concerning Notes on Significant Changes in Shareholder’s Equity)
No applicable items(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 for transactions 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 stockacquisition rights, which involve considerations, with vesting conditions prior to the date of application of PITF
No. 36 in accordance with the previously adopted accounting procedure.

13

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Second Quarter Ended September 30, 2018
November 12, 2018

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Second Quarter Ended September 30, 2018

(As of September 30, 2018)

Disclosure of consolidated financial statements, etc., under the Previous accounting standards
As of Fiscal year ended June 30, 2007 the JAIC Group has adopted “Practical Solution on Application of Control Criteria and Influence
Criteria to Investment Associations” (Accounting Standards Board of Japan Practical Issues Task Force No. 20 issued on September 8,2006), and consolidated financial statements, etc., are being prepared with the inclusion in the consolidation of some of the operational
investment funds managed by the Group.
Nevertheless, to enable investors and shareholders to have an accurate understanding of the JAIC Group’s business results and financial
position, we consider it essential also to disclose financial statements, etc., prepared in accordance with the previous accounting standards.
Therefore, for reference purposes, the Group will continue to disclose financial statements, etc., in accordance with the previous accounting
standards.

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the Second quarter ended September 30, 2018 (April 1, 2018 to September 30, 2018)(1) Consolidated results of operations (cumulative total)(Percentages indicate year-on-year increase or decrease)
Operating revenue

Operating income

Ordinary income

Millions of yen % change

Millions of yen % change

Millions of yen % change

Profit attributable toowners of parent
Millions of yen % change

716(71.9)

(465)

—

(460)

—

(534)

—

2,547

54.4

714

232.0

640

483.6

493

—

For six months ended
September 30, 2018
For six months ended
September 30, 2017

Yen

Diluted net income
per shareYen(30.18)

—

27.90

27.85

Net income per share
For six months ended
September 30, 2018
For six months ended
September 30, 2017(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen%

As of September 30, 201816,941

6,006

35.3

Yen
338.16

As of March 31, 201819,220

6,568

34.1

369.75(Reference) Total shareholders' equity

Equity ratio

Net assets per share

As of September 30, 2018: 5,986 millions of yen As of March 31, 2018: 6,545 millions of yen

14

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2019 (April 1, 2018 to March 31, 2019)
The private equity investment business conducted by the Group is significantly affected by changing factors such as stock markets, given thecharacteristics of the business. In addition, it has been difficult to forecast results reasonably in the rapidly changing environment. Therefore
we do not disclose the results forecast. For the convenience of investors and shareholders, however, we disclose “result forecast
consolidated under the Previous Accounting Standard” even though it doesn’t have enough rationality.
Operating revenues
For the year ending
March 31, 2019

Operating income

Ordinary income

Millions of yen% change

Millions of yen% change

Millions of yen% change

3,450(36.2)

700(31.2)

550(42.4)

Profit attributable to ownersof parent
Millions of yen% change
470(46.2)Net income per share
Yen
For the year ending
March 31, 2019

26.55

(Note) Revision of dividends forecast during the current quarterly period: None
Net income per share in above chart is calculated based on the number of shares issued and outstanding excluding the number of shares oftreasury stock as at September 30, 2018.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements in this document are
based upon the information currently available to the Group at the time of writing and certain assumptions. The achievement is not promised.
Various factors could cause actual results to differ materially from these result forecasts.

15

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

3. Business Performance and Financial Condition(1) Breakdown of operating revenue and operating cost

(Millions of yen)

For six months ended
September 30, 2017(from April 1, 2017
to September 30, 2017)

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

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

2,547

716

5,403

Management fees

134

129

277

Contingency fees

50

—

86

1,053

196

3,219

1,261

357

1,612

Income gains

31

9

64

Other operating revenue

14

22

142

Total operating cost (C)

1,227

638

3,074

Cost of securities sold (D)

894

205

2,469

317

420

562

Fund interests losses etc.

13

8

36

Other operating cost

2

3

5

Operating gross profit (A) - (C)

1,319

78

2,328

Realized capital gains (B) - (D)

159

(8)

749

Investment income

(157)

(429)

187

Total operating revenue (A)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 September 30, 2017

As of September 30, 2018

As of March 31, 2018

Total asset

19,604

16,941

19,220Total liabilities

13,583

10,935

12,652

12,468

10,288

11,954

6,020

6,006

6,568

5,997

5,986

6,545

Loans payable
Total net asset
Total shareholders’ equity

16

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 September 30, 2018

AssetsCurrent assets
Cash and deposits

7,308

4,885

Operational investment securities

10,844

11,038

Allowance for possible investment loss

(1,230)(918)

Operating loans

204

204

Other

467

122

Allowance for doubtful accounts
Total current assets

(40)

(0)

17,554

15,331

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

29

Accumulated depreciation

(15)

(15)

Buildings and structures, net

14

14

Vehicles, tools, furniture and fixtures

70

70

Accumulated depreciation

(55)

(57)

Vehicles, tools, furniture and fixtures, net

14

12

Land

22

22

Total property, plant and equipment

51

49

Other

55

79

Total intangible assets

55

79

1,454

1,380

Claims provable in bankruptcy, claims provable inrehabilitation and other

89

86

Other

33

32

Intangible assets

Investments and other assets
Investment securities

Allowance for doubtful accounts

(18)

(18)

Total investments and other assets

1,558

1,481

Total non-current assets

1,665

1,610

Total assets

19,22016,94117

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

As of September 30, 2018

Liabilities
Current liabilities
Short-term loans payable

1,468

1,008

Accrued expenses

156

74

Income taxes payable

61

59

Provision for bonuses

51

41

Provision for loss on liquidation of subsidiaries andassociates

－

63

Other

297

261

2,035

1,508

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

10,486

9,279

Deferred tax liabilities

18

27

Net defined benefit liability

112

119

Total non-current liabilities

10,616

9,427

Total liabilities

12,652

10,935

5,426

5,426

Net assets
Shareholders' equity
Capital stock
Capital surplus

3,505

3,505

Retained earnings(2,584)(3,119)Treasury shares

(353)

(353)

Total shareholders' equity

5,993

5,459

Valuation difference on available-for-sale securities

332

341

Foreign currency translation adjustment

219

186

Total accumulated other comprehensive income

552

527

Subscription rights to shares

17

19

Non-controlling interests

5－

Total net assets

6,568

6,006

Total liabilities and net assets

19,22016,941

Accumulated other comprehensive income18

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

For six months ended
September 30, 2017(from April 1, 2017 to
September 30, 2017)
Operating revenue

2,547

716

Operating cost

1,227

638

Operating gross profit (loss)

1,319

78

Selling, general and administrative expenses
Total selling, general and administrative expenses

605

543

Operating profit (loss)

714

(465)

Interest income

1310

Dividend income2416

Foreign exchange gains－

67

Miscellaneous income

76

Total non-operating income

45

101

113

94

2

－

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss

2

2

118

97

640

(460)

－

4

Gain on sales of non-current assets

0－

Total extraordinary income

04

Loss on valuation of investment securities－

4

Loss on redemption of investment securities

80

0Provision for loss on liquidation of subsidiaries andassociates－

63

Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of investment securities

Extraordinary losses

Other

0

0

Total extraordinary losses

81

68

Profit (loss) before income taxes

559

(524)

Income taxes - current

65

9Total income taxes

65

9Profit (loss)

493

(534)

Profit (loss) attributable to owners of parent

493

(534)

19