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. The Company assumes no responsibility for this translation orfor direct, indirect or any other forms of damages arising from the translation.

Consolidated Financial Results
for the Year Ended March 31, 2022
[Japanese Standards](Summary of Japanese announcement)
May 13, 2022
Company name:

Japan Asia Investment Co., Ltd.

Listed on:

Tokyo Stock Exchange, Standard Market (Stock code: 8518)

Head office:Tokyo

Representative:

Tetsuro Shimomura, President and CEO

Contact:

Kenji Kishimoto, Executive Officer

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

Tel: +81-3-3221-8518 (main)
Scheduled date for ordinary general meeting of shareholders: June 28, 2022
Scheduled date for submission of annual report: June 29, 2022
Scheduled date for start of payment of dividends: —The additional materials of the Financial Results: Yes
The briefing session of the Financial Results: None *We will distribute a video explaining financial results in Japanese on our
website.

(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, 2022 (April 1, 2021 to March 31, 2022)(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

Profit attributable toowners of parent
Millions of yen % change

For the year ended
March 31, 2022

3,204(13.6)

(237)

—

(412)

—

19

(42.5)For the year ended
March 31, 2021

3,709

(6.1)

(163)

—

(399)

—

33

(90.3)(Note) Comprehensive Income
For the year ended March 31, 2022: 798 millions of yen 358.4%
For the year ended March 31, 2021: 174 millions of yen (71.9)%

For the year ended
March 31, 2022
For the year ended
March 31, 2021

Net income per share

Diluted net income
per share

Return on equity

Ordinary income tototal assets

Yen

Yen

%

%

Operating income
to operating
revenues
%

1.09

1.08

0.3

(1.8)

(7.4)

1.89

1.88

0.5

(1.5)

(4.4)

(Reference)Equity in earnings (loss) of affiliates
For the year ended March 31 2022: ― millions of yen
For the year ended March 31 2021: ― millions of yen

1

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

Net assets

Net assets per share

Equity ratio

Millions of yen

Millions of yen%

Yen

As of March 31, 2022

20,231

9,443

38.4

438.69As of March 31, 2021

25,165

9,106

29.1

413.98(Reference) Total shareholders' equity;
As of March 31, 2022: 7,766 millions of yen / As of March 31, 2021: 7,328 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

(145)

212

(1,007)

2,397

1,728

61

(1,216)

3,301

Dividends per share
End of third quarter
Yen

End of year
Yen

For the year ended March
31, 2022
For the year ended March
31, 2021

equivalents at

2. Dividends(Base date)Year ended March
31, 2022
Year ended March
31, 2021
Year ending March
31, 2023 (forecast)End of first quarter
Yen

End of second quarter
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, 2023 (from April 1, 2022 to March 31, 2023)
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, 2023 (April 1,
2022 to March 31, 2023)” on page 24.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements in thisdocument are based upon the information currently available to JAIC at the time of writing and certain assumptions. The
achievement is not promised. Various factors could cause actual results to differ materially from these result forecasts.
4. Other matters(1) Changes among significant subsidiaries (Changes among specific subsidiaries resulting in changes in the scope of
consolidation): None
[New - company (company name: - ) Excluded - company (company name: -)](2) 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: None2

Japan Asia Investment Co., Ltd.
Fund Consolidation(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, 2022:
stock)(ii) Shares of treasury stock at the end of
The year ended Marcheach period
31, 2022:(ii) Average number of shares during the
The year ended March
period31, 2022:

17,884,392
sharesThe year ended March
31, 2021:

17,884,392
shares181,009
shares17,703,383
sharesThe year ended March
31, 2021:
The year ended March
31, 2021:

181,009
shares17,703,383
sharesReference: Non-consolidated results
Business results for the year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Results of operations(Percentages indicate year-on-year increase or decrease)

Operating revenues
Millions of yen% change
For the year ended
March 31, 2022
For the year ended
March 31, 2021

Ordinary income
Millions of yen% change

Net income
Millions of yen% change

2,244(22.8)

132(32.4)

118(22.3)

106(20.9)

2,907

13.4

196

(11.7)

152

63.0

134

(45.8)Net income per share
Yen
For the year ended
March 31, 2022
For the year ended
March 31, 2021

Operating income
Millions of yen% change

Diluted net income
per share
Yen

6.02

5.99

7.61

7.58

(2) Financial position

As of March 31, 2022
As of March 31, 2021

Total assets
Millions of yen
14,571
14,254

Net assets
Millions of yen
7,454
7,001

Equity ratio
%
50.9
48.9

Net assets per shareYen
419.29393.89(Reference) Total shareholders' equity As of March 31, 2022: 7,422 millions of yen / As of March 31, 2021: 6,973 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, 2022 will be released on our website on May
13, 2022.
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, 2021
(from April 1, 2020
to March 31, 2021)

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

3,709

3,204

122

117

2,112

1,732

1,450

1,330

24

24

Total operating cost

2,516

1,971

Cost of securities sold

1,199

887

199

160

1,109

914

Other operating cost

7

10

Operating gross profit

1,192

1,232

Total operating revenue
Management fees
Proceeds of sales of operational
investment securities
Fund interests income and Income
gains etc.
Other operating revenue

Investment write-offs & Provision
for allowance for possible
investment losses
Fund interests losses etc.

(2) Investment income(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021
to March 31, 2022)

For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)
Project
investment

Proceeds of sales of operational

Privateequitytotal

investment

Project
investment

Privateequitytotal

investment

689

1,422

2,112

669

1,062

1,732

Cost of securities sold (B)

501

697

1,199

521

365

887

Realized capital gains (A)-(B)

188

725

913

147

697

845

―

199

199

―

160

160

188

525

713

147

537

685

investment securities (A)Investment write-offs & Provision forallowance for possible investment losses(C)
Investment income (A)-(B)-(C)4

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Cash flows(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021
to March 31, 2022)

For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)
Cash flow from operating activities

1,728

ሺ145)

Cash flow from investing activities

61

212

Cash flow from financing activities(1,216)

ሺ1,007)

Cash and cash equivalents at theend of period

3,301

2,397

(4) Breakdown of total assets
As of March 31, 2021
Amount(B)/(A) (%)(Millions of yen)
As of March 31, 2022
Amount(B)/(A) (%)

Total assets

25,165－

20,231－

Cash and deposits

6,486

－

5,666

－

Property, plant and equipment

7,852

－

4,148

－

9,379

－

9,538

－

(1,349)14.4

ሺ1,492)

15.6

Operational Investment
Securities (A)Allowance for Possible
Investment Loss (B)(5) Breakdown of loans payable and bonds(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Total of loans payable and bonds

14,9909,521

Loans payable;
Non-consolidated base

6,950

5,943

Loans payable by project financeand bonds;
Consolidated projects

8,039

3,578

5

Japan Asia Investment Co., Ltd.
Fund Consolidation

2. Business Position(1) Investment activities (JAIC+Funds)i) Breakdown of new investment and new loan
For the year ended
March 31, 2021
(from April 1, 2020 toMarch 31, 2021)
Number ofAmountcompanies(Millions of yen)

For the year ended
March 31, 2022
(from April 1, 2021 toMarch 31, 2022)
Number ofAmountcompanies(Millions of yen)

1) Area
Project investment (Japan)

14

1,445

19

1,938

Private equity investment subtotal

5

322

8

1,482

Japan

5

322

8

1,482

China, Hong Kong, Taiwan etc.

-

-

-

-

14

1,445

19

1,938

Renewable energy

4

246

4

497

Healthcare

5

452

8

219

Smart agriculture

1

530

1

415

Distribution center

4

217

4

632

Other

-

-

2

174

5

322

8

1,482

Strategic investment

2

214

3

359

Financial investment

3

107

5

1,122

19

1,767

27

3,420

2) Investment program
Project oriented investment subtotal

Private equity investment subtotal

Total(Note) Strategic investment is investment in partner companies in the projects for which the Group makes investment or provides
loans. Financial investment is investment in companies other than strategic investment.

6

Japan Asia Investment Co., Ltd.
Fund Consolidationii) Balance of investment and loan
As of March 31, 2021
Number ofAmountcompanies(Millions of yen)

As of March 31, 2022
Number ofAmountcompanies(Millions of yen)

1) Area
Project investment (Japan)

33

6,088

43

6,344

Private equity investment subtotal

88

6,767

86

7,440

Japan

48

3,652

47

4,510

China, Hong Kong, Taiwan etc.

40

3,115

39

2,929

33

6,088

43

6,344

Renewable energy

21

3,999

19

3,286

Healthcare

6

738

14

952

Smart agriculture

1

532

1

879

Distribution center

4

540

6

801

Other

1

277

3

424

88

6,767

86

7,440

Strategic investment

6

1,155

7

1,432

Financial investment

82

5,612

79

6,007

121

12,855129

13,784

2) Investment program
Project oriented investment subtotal

Private equity investment subtotal

Total(Note) Strategic investment is investment in partner companies in the projects for which the Group makes investment or provides
loans. Financial investment is investment in companies other than strategic investment.

7

Japan Asia Investment Co., Ltd.
Fund Consolidation(2)JAIC-Backed IPOs (JAIC+Funds)i) Number of IPOs
For the year ended
For the year ended
March 31, 2021
March 31, 2022
(from April 1, 2020
(from April 1, 2021
to March 31, 2021)
to March 31, 2022)
Number of IPOs (total of Japan & overseas)
2 companies
4 companies
First price multiple (average of Japan & overseas)
2.3 times
3.7 times
Note: First price multiple = Market value of shares held by the Group calculated at first price/Total our acquisition cost.
We do not include listed shares those we acquired by equity swaps when we calculate the first price multiple.
ii) JAIC-Backed IPOs
For the year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
Company
Date ofMarketBusiness
Name
IPO
WonderPlanet Inc.
10-Jun-21
TSE Mothers Entertainment Services BusinessSelling new electronic power, newgas and internet connections etc. as a
Last One Mile Co., Ltd.
24-Nov-21 TSE Mothers sales agency utilizing inside sales
etc., and providing our original
service “Marutto Series”
Development and operation of
Renewable Japan Co., Ltd.
22-Dec-21
TSE Mothers
renewable energy power plants
Operation of Comic EC“MANGAZENKAN.COM” andplanning, development, marketing,
TORICO Co.,Ltd.
23-Mar-22
TSE Mothers
sales of Manga/Japanese animation
goods and various Manga based
services
For the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
Company
Date ofMarketBusiness
Name
IPO
Research and development of
FunPep Company Limited
25-Dec-20
TSE Mothers pharmaceuticals based on functional
peptidesResearch and development of
HGF (hepatocyte growth
Kringle Pharma, Inc.
28-Dec-20
TSE Mothers
factor) protein as a therapeutic agent
for intractable diseases(Note) The listed market is the market as of the date of IPO.

8

Headquarters
Japan

Japan

Japan

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, 2021
Commitment

Net asset
value ofinvestment
funds

amount of
Number ofinvestment

funds

funds

As of March 31, 2022
Commitment
Number offunds(Millions ofyen)(Millions ofyen)amount ofinvestment
funds(Millions of yen)

Net asset
value ofinvestment
funds(Millions ofyen)

During operation period

4

6,510

2,720

5

7,511

3,349

Maturity is being extended

4

6,913

2,279

2

4,328

818

3

3,026

1,053

3

4,624

1,237

6,053

10

During liquidation
procedure
Total[Total commitment amount of

11

JAIC group]

16,450[5,434]

16,463[4,953]

5,404

Note: Since the number of funds in the course of being wound up while possessing investment assets has increased, funds during
the liquidation procedure are included in the scope of disclosure from the current fiscal year under review.

ii) Funds during operation period (as of March 31, 2022)
Name of fund

Inception

Total commitment
amount(Millions of yen)

Maturity

Features
Secondary investment fund targeting

JAIC

VentureCapitalInvestment L.P.

Feb. 2016

Feb. 2026

2,000

mainly venture companies in Japan.
Domestic leading financial institution
invested in this fund.
General partner of the Fund is a joint
venture between JAIC and Aozora Bank,

Succession

Investment

Limited Partnership, I

Jun. 2017

Jun. 2027

3,000

Ltd.. an affiliated company not covered by
the equity method.
Supporting the business succession needs of
SMEs in Japan.

JAIC-Solar Fund, L.P.,II

Mar. 2020

Dec. 2039

1,359

Investment target of the Fund is mega solar
projects in operation.
JAIC and Asian Market Planning Co., Ltd.

Hokkaido SME Global
Fund, L.P.

jointly manage the Fund as Co-GP.
Apr. 2020

Dec. 2026

151

Investing in SMEs in Hokkaido that operateor aim to operate in oversea market and that
promote business to meet inbound demand
Secondary investment fund targeting
mainly venture companies in Japan.

AJC Venture Capital
Investment Limited

Jun. 2021

Jun. 2031

1,001

Partnership

General partner of the Fund is a joint
venture between JAIC and Aozora Bank,
Ltd. an affiliated company not covered by
the equity method.

9

Japan Asia Investment Co., Ltd.
Fund Consolidation

Notes:
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.

10Japan Asia Investment Co., Ltd.
Fund Consolidation
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

6,486

5,666

Operational investment securities

9,379

9,538

(1,349)(1,492)

Allowance for possible investment loss
Operating loans

204

204

Other

355

411

Allowance for doubtful accounts

－

(51)

15,075

14,277

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

211

394

Accumulated depreciation

(9)

(24)

Buildings and structures, net

201

370

Machinery and equipment

7,968

3,181

Accumulated depreciation

(514)

(327)

Machinery and equipment, net

7,453

2,854

Vehicles, tools, furniture and fixtures

55

150

Accumulated depreciation

(38)

(50)

Vehicles, tools, furniture and fixtures, net

16

100

Land

46

172

Construction in progress

133

651

7,852

4,148

1,210

1,112

246

215

1,456

1,327

Investment securities

365

59

Distressed receivables

49

7

Other

377

418

Allowance for doubtful accounts

(12)

(7)

Total investments and other assets

780

477

10,0895,954

25,165

20,231

Total property, plant and equipment
Intangible assets
Power production facilities concessions
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets

11Japan Asia Investment Co., Ltd.
Fund Consolidation(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Short-term borrowings

919

Current portion of bonds payable

654

6

7

Accrued expenses

389

662

Income taxes payable

39

61

Provision for bonuses

49

75

Other

30

38

1,434

1,500

185

177

Long-term borrowings

13,879

8,681

Deferred tax liabilities

19

53

Total current liabilities
Non-current liabilities
Bonds payable

Retirement benefit liability

137

143

Asset retirement obligations

403

230

Total non-current liabilities

14,624

9,287

Total liabilities

16,05910,787

Net assets
Shareholders' equity
Share capital

5,426

5,426

Capital surplus

3,515

3,515

Retained earnings(1,575)(1,571)

Treasury shares

(353)
7,012

7,017

Valuation difference on available-for-sale securities

124

470

Foreign currency translation adjustment

191

278

Total accumulated other comprehensive income

316

749

Share acquisition rights

27

31

Total shareholders' equity(353)

Accumulated other comprehensive income

Non-controlling interests

1,749

1,646

Total net assets

9,106

9,443

Total liabilities and net assets

25,165

20,23112

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

Operating revenue

For the year ended
March 31, 2021
(from April 1, 2020 to March
31, 2021)
3,709(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021 to March
31, 2022)
3,204

Operating costs

2,516

1,971

Operating gross profit

1,192

1,232

158

154

Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances

244

289

Taxes and dues

152

160

Fund interests expenses

308

285

Other

491

579

1,355

1,470

(163)

(237)

Interest income

89Dividend income21Foreign exchange gains

26

65

Gain on investments in investment partnerships

43

1

Outsourcing service income

4－

Rental income from facilities

3

3

Total selling, general and administrative expenses
Operating loss
Non-operating income

Miscellaneous income

30

Total non-operating income

91

82

328

255

Non-operating expenses
Interest expenses
Miscellaneous losses

0

0

328

256

(399)

(412)

622

836

Gain on sale of investment securities

4

99

Other

10

1

Total extraordinary income

637

936

Loss on sale of investment securities－

107

Loss on valuation of investment securities

25－

Loss on redemption of investment securities

0

－

Other

2

0

Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sale of non-current assets

Extraordinary losses

Total extraordinary losses
Profit before income taxes

29

107

208

417

Income taxes - current

16

4

Total income taxes

16

4

Profit191

412

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

158
33

393
19

13

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income
For the year ended
March 31, 2021
(from April 1, 2020 to March
31, 2021)(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021 to March
31, 2022)

191

412

Valuation difference on available-for-sale securities

96

381

Foreign currency translation adjustment

40

17

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

(154)

(13)

Total other comprehensive income

(17)

385

174

798

2

451

171

346

ProfitOther comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

14

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Millions of yen)

Shareholders' equity

Balance at beginning of period

Share capital

Capital surplus

5,426

3,408

Retainedearnings(1,608)Treasury shares

Total
shareholders'equity

(353)

6,871

Changes during period
Profit attributable to owners ofparent33

33

Change in scope of
consolidation－

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

107

107

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

Balance at end of period

－

107

33

－

140

5,426

3,515

(1,575)

(353)

7,012

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

194

152

347

25

Non-controlling
Total net assetsinterests

1,472

8,716

Changes during period
Profit attributable to owners ofparent33

Change in scope of
consolidation－

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

107

Net changes in items other thanshareholders' equity

(69)

38

(30)

2

277

249

Total changes during period

(69)

38

(30)

2

277

389

Balance at end of period

124

191

316

27

1,749

9,106

15

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Millions of yen)

Shareholders' equity

Balance at beginning of period

Share capital

Capital surplus

5,426

3,515

Retainedearnings(1,575)

Treasury shares

Total
shareholders'equity

(353)

7,012

Changes during period
Profit attributable to owners ofparent19

19

Change in scope of
consolidation

(15)

(15)

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

00

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

Balance at end of period

－

0

4

－

4

5,426

3,515

(1,571)

(353)

7,017

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

124

191

316

27

Non-controlling
Total net assetsinterests

1,749

9,106

Changes during period
Profit attributable to owners ofparent19

Change in scope of
consolidation(15)

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity

0

345

87

432

3

(103)

332

Total changes during period

345

87

432

3

(103)

337

Balance at end of period

470

278

749

31

1,646

9,443

16

Japan Asia Investment Co., Ltd.
Fund Consolidation(5) Consolidated Statements of Cash Flows
For the year ended
March 31, 2021
(from April 1, 2020 to March
31, 2021)(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021 to March
31, 2022)

Cash flows from operating activities
Profit before income taxes

208

417

Depreciation

29

38

Increase (decrease) in allowance for investment loss

(332)

16

Increase (decrease) in allowance for doubtful accounts

(6)

46

Increase (decrease) in provision for bonuses

(15)

26

Increase (decrease) in retirement benefit liability

13

6Interest and dividend income

(7)

(7)

Interest expenses

129

106

Loss (gain) on investments in investment partnerships

(43)

(1)

Loss (gain) on sale of investment securities(4)

8

Loss (gain) on redemption of investment securities(8)－

Loss on valuation of operational investment securities－

29

Decrease (increase) in investment securities for sale173

(1,269)Decrease (increase) in operating loans receivable

(149)

(216)

15

42

Payment for purchase of investment funds

Decrease (increase) in distressed receivables(1,284)(1,968)Dividends from investment funds

3,171

3,037

Increase (decrease) in investment funds of minority
interest

(46)

(363)

Other, net

(102)

16

Subtotal

1,738

(34)

7

7

Interest and dividends received
Interest paid

(134)

(111)

Income taxes paid

(24)

(15)

Income taxes refund

142

8

1,728

(145)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment

(48)

－

Purchase of intangible assets

(29)

(6)

Purchase of investment securities(2)－

Proceeds from sale of investment securities

46

219

Proceeds from redemption of investment securities

38－

Other, net

570Net cash provided by (used in) investing activities

61

212

(1,216)(1,007)－(0)(1,216)(1,007)

3

36

Cash flows from financing activities
Repayments of long-term borrowings
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

577

(903)

Cash and cash equivalents at beginning of period

2,723

3,301

Cash and cash equivalents at end of period

3,301

2,397

17

Japan Asia Investment Co., Ltd.
Fund Consolidation(5) Notes on Consolidated Financial Statements(Notice Concerning Notes on Matters Regarding the Assumption of Going Concern)
No applicable items(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition and Its Implementation Guidance)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and other related standards from the beginning of the current fiscal year. The Company now
recognizes revenue when control of promised goods or services is transferred to the customer in the amount
expected to be received in exchange for those goods or services.
These changes have no impact on the consolidated financial statements.
(Application of Accounting Standard for Fair Value Measurement and Its Implementation Guidance)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019, hereinafter referred to as the “Fair Value Measurement Accounting Standard”) and other related
standards from the beginning of the current fiscal year.
The Company has decided to apply the new accounting policies set forth by the “Accounting Standard for Fair
Value Measurement” into the future in accordance with the transitional treatment prescribed in Paragraph 19 of
the “Accounting Standard for Fair Value Measurement” and Paragraph 44–2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
As a result, from the beginning of the current fiscal year, of other securities, investments other than stocks ofunlisted investees have been booked on the consolidated balance sheet at fair value, instead of at acquisitioncost. The valuation difference was booked directly in net assets.
(Additional Information)
COVID-19 has a widespread impact on the economy and business activities. However, the impact on the Grouphas been limited since the end of the previous consolidated fiscal year. We make accounting estimates ofinvestment valuations based on the assumption that part of the impact of this infectious disease on people's lives
will take root as a new lifestyle, and that the economic activities of companies will change accordingly.
(Segment Information)
Segment information is not provided as the Group has single segment; Investment business.

18

Japan Asia Investment Co., Ltd.
Fund Consolidation(Per-share Data)
For the year ended March 31, 2021
(from April 1, 2020 to March 31,
2021)

For the year ended March 31, 2022
(from April 1, 2021 to March 31,
2022)¥438.69
¥1.09
¥1.08

Net assets per share¥413.98
Net income per share¥1.89
Diluted net income per share
¥1.88
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, 2021
For the year ended March 31, 2022
(from April 1, 2021 to March 31,(from April 1, 2020 to March 31,
2022)
2021)
Net income per share
Net income attributable toowners of parent
33
19(Millions of yen)Amount not attributable tocommon shareholders－－(Millions of yen)
Net income attributable toowners of parent relating to33
19common stock (Millions of yen)
Average no. of shares
outstanding during the term
17,703
17,703(Thousands)
Diluted net income per share
Adjustment of net income
attributable to owners of parent－－(Millions of yen)
Increase in common stock
61
74(Thousands)
Share acquisition rights
61
74
Latent shares not included indiluted net income per share－－calculation due to lack ofdilution effect(Important Subsequent Events)
No applicable items

19

Japan Asia Investment Co., Ltd.
Non Consolidation
4. Non-consolidated Financial Statements(1) Balance Sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

3,277

2,367

Operational investment securities

10,426

11,956

Allowance for possible investment loss

(843)

(925)

Operating loans

444

660

Accounts receivable - other

72

66

Other

89

61

Allowance for doubtful accounts

－

(51)

13,466

14,136

Buildings

33

31

Tools, furniture and fixtures

12

8

Land

0

0

Total property, plant and equipment

46

40

Other

15

12

Total intangible assets

15

12

Investment securities

266

26

Shares of subsidiaries and associates

333

307

Distressed receivables

49

7

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

Intangible assets

Investments and other assets

Other

90

48

Allowance for doubtful accounts

(12)

(7)

Total investments and other assets

726

382

Total non-current assets
Total assets

20

788

435

14,254

14,571

Japan Asia Investment Co., Ltd.
Non Consolidation(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Current portion of long-term borrowings

507

309

Suspense receipt－

749

Accrued expenses

51

84

Income taxes payable

35

61

Provision for bonuses

43

67

Other

15

13

Total current liabilities

654

1,286

Non-current liabilities
Long-term borrowings

6,442

5,633

Provision for retirement benefits

137

143

Deferred tax liabilities

19

53

Total non-current liabilities

6,599

5,831

Total liabilities

7,253

7,117

5,426

5,426

Net assets
Shareholders' equity
Share capital
Capital surplus
Legal capital surplus

1,426

1,426

Other capital surplus

2,081

2,081

Total capital surplus

3,507

3,507

Retained earnings brought forward(1,932)(1,825)

Total retained earnings(1,932)(1,825)Retained earnings
Other retained earnings

Treasury shares

(353)

(353)

Total shareholders' equity

6,647

6,754

Valuation and translation adjustments
Valuation difference on available-for-sale securities

325

668

Total valuation and translation adjustments

325

668

Share acquisition rights

27

31

Total net assets
Total liabilities and net assets

21

7,001

7,454

14,254

14,571

Japan Asia Investment Co., Ltd.
Non Consolidation(2) Statements of Income(Millions of yen)

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

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

Operating revenue

2,907

2,244

Operating costs

1,783

1,131

Operating gross profit

1,124

1,113

Selling, general and administrative expenses

928

980

Operating profit

196

132

Interest income

33

Dividend income21Foreign exchange gains

26

66

Non-operating income

Gain on investments in investment partnerships

43

1

Outsourcing service income

4－

Rental income from facilities

4

19

Miscellaneous income

00

Total non-operating income

84

92

129

106

Non-operating expenses
Interest expenses
Total non-operating expenses

129

106

152

118

Gain on sale of non-current assets

3－Gain on sale of investment securities

499

Gain on redemption of investment securities

8－

Total extraordinary income

1699

Loss on sale of investment securities－

107

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on valuation of investment securities

25－

Loss on redemption of investment securities

0

－

Other

2

0

Total extraordinary losses

29

107

139

109

Income taxes - current

4

3

Total income taxes

4

3

134

106

Profit before income taxes

Profit22

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Year Ended March 31, 2022
May 13, 2022

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Year Ended March 31, 2022

(As of March 31, 2022)

Disclosure of consolidated financial statements, etc., under the previous accounting standards
As of Fiscal year ended March 31, 2007 the 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 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, 2022 (April 1, 2021 to March 31, 2022)(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, 2022
For the year ended
March 31, 2021

2,409

(22.0)

86(59.7)

61(64.6)

49(66.0)

3,089

11.9

214

(19.2)

173

23.5

144

(52.1)

Yen

Diluted net income
per share
Yen

2.78

2.77

0.7

0.4

3.6

8.18

8.15

2.0

1.1

6.9

Net income per share
For the year ended
March 31, 2022
For the year ended
March 31, 2021

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, 2022

14,972As of March 31, 2021

14,657(Reference) Total shareholders' equity

Equity ratio%

Net assets per share
Yen

7,810

52.0

439.41

7,366

50.1

414.50

As of March 31, 2022:7,779 millions of yen / As of March 31, 2021: 7,338 millions of yen

23

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
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, 2022
For the year ending
March 31, 2023

Operating income

Ordinary income

Profit attributable to ownersof parent
Millions of yen% change

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,950

411.8

780

－

730

－

600

－

3,000

24.5

750

768.7

650

954.8

550

1,017.2

Net income per share
Yen
For six months ending
September 30, 2022
For the year ending
March 31, 2023

33.89
31.07

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 Company at the time of writing and certain assumptions. The achievement is notpromised. 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, 2022.

24

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, 2021
(from April 1, 2020
to March 31, 2021)
Total operating revenue(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021
to March 31, 2022)

3,089

2,409

169

154

2,221

1,573

648

631

49

50

Total operating cost

1,788

1,133

Cost of securities sold

1,249

810

194

145

336

167

Other operating cost

7

10

Operating gross profit

1,301

1,276

Management fees
Proceeds of sales of operational
investment securities
Fund interests income and Income
gains etc.
Other operating revenue

Investment write-offs & Provision
for allowance for possible
investment losses
Fund interests losses etc.

(2) Investment income(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021
to March 31, 2022)

For the year ended
March 31, 2021
(from April 1, 2020
to March 31, 2021)
Project
investment

Proceeds of sales of operational

Privateequitytotal

investment

Project
investment

Privateequitytotal

investment

880

1,341

2,221

657

915

1,573

Cost of securities sold (B)

587

662

1,249

509

300

810

Realized capital gains (A)-(B)

293

678

972

147

615

762

―

194

194

―

145

145

293

484

777

147

469

617

investment securities (A)Investment write-offs & Provision forallowance for possible investment losses(C)
Investment income (A)-(B)-(C)25

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(3) Asset, Liability and Net asset(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Total asset

14,657

14,972

Total liabilities

7,291

7,161

6,950

5,943

7,366

7,810

7,338

7,779

Loans payable
Total net asset
Total shareholders’ equity(4) Result forecast consolidated under the Previous Accounting Standard
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.
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 Company at the time of writing and certain assumptions. The achievement is notpromised. Various factors could cause actual results to differ materially from these result forecasts.
Assumptions used in the “result forecast consolidated under the Previous Accounting Standard” are as follows.
(A) Operating revenue
Consolidated operating revenue is expected to be 3,000 million yen. The breakdown is as follows.
Management fees will decrease from the fiscal year ended March 2022 to 130 million yen in line with a decline in assets undermanagement of existing funds.
Proceeds of sales of operational investment securities will increase from the fiscal year ended March 2022 to 2,020 million yen as a recoverof the sale of shares in private equity investment. This will attributable mainly to listed shares and IPOs in Japan. We expect to record 1,470
million yen for listed shares and IPOs, and 550 million yen for unlisted shares.
As for fund interests income and income gains etc., we expect to record 130 million yen for funds operated by third parties and 610 million
yen for project oriented investments. We estimate the gains on the sale of four projects in total including distribution center, healthcare andother projects as well as revenues from mega solar projects in operation. In addition, we expect to record 110 million yen as consulting
fees.
(B) Operating income
Operating cost is expected to be 1,050 million yen, including cost of securities sold of 680 million yen. As for breakdown, we expect torecord 270 million yen for listed shares and IPOs, and 410 million yen for unlisted shares. We expect most of the capital gains from listed
shares and IPOs. Unlike the fiscal year ended March 2022, however, in addition to IPOs during the fiscal year, we expect capital gains fromlisted shares. We plan to sell the shares that have already achieved IPO when their lockup period will end. Therefore, compared to the fiscal
year ended March 2022, we expect an increase in capital gains on the sale of shares and a reduction in downside risk of the capital gains.
Valuation losses and provisions are expected to be 260 million yen, assuming that they will occur at a certain ratio to the investment
balance. Fund interests losses are expected to 100 million yen due to the anticipatory expenses for renewable energy projects not yet inoperation and the vegetable factory. In addition, we expect to record 10 million yen as other operating costs.
Selling, general and administrative expenses are expected to 1,200 million yen, about the same level as the fiscal year ended March 2022.
As a result, consolidated operating profit is expected to be 750 million yen.
(C) Ordinary income
We expect to record 100 million yen for non-operating expenses such as interest expense. As a result, consolidated ordinary profit isexpected to be 650 million yen.

26

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(D) Profit attributable to owners of parent
We expect to record no extraordinary income or loss and to record 100 million yen for tax expenses. As a result, profit attributable toowners of parent is expected to be 550 million yen.
Most of the profits are expected to be generated in the second quarter.

27

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

3,699

2,740

Operational investment securities

10,457

12,238

Allowance for investment loss

(845)

(1,099)Operating loans

444

660

Other

187

150

Allowance for doubtful accounts

－

(51)

13,942

14,639Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

36

36

Accumulated depreciation

(3)

(5)

Buildings and structures, net

33

31

Vehicles, tools, furniture and fixtures

54

55

Accumulated depreciation

(38)

(44)

Vehicles, tools, furniture and fixtures, net

15

10

Land

0

0

Total property, plant and equipment

49

42

Other

231

199

Total intangible assets

231

199

365

59

Intangible assets

Investments and other assets
Investment securities
Distressed receivables

49

7

Other

32

31

Allowance for doubtful accounts

(12)

(7)

Total investments and other assets

434

90

Total non-current assets

715

332

14,657

14,972

Total assets

28

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Short-term borrowings

507

309

Suspense receipt－

750

Accrued expenses

57

87

Income taxes payable

39

61

Provision for bonuses

49

75

Other

38

45

Total current liabilities

691

1,330

6,442

5,633

Non-current liabilities
Long-term borrowings
Deferred tax liabilities

19

53

Retirement benefit liability

137

143

Total non-current liabilities

6,599

5,831

Total liabilities

7,291

7,161

5,426

5,426

Net assets
Shareholders' equity
Share capital
Capital surplus

3,505

3,505

Retained earnings(1,559)(1,509)Treasury shares

(353)

(353)

Total shareholders' equity

7,019

7,068

318

656

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

054

Total accumulated other comprehensive income

318

710

Share acquisition rights

27

31

Total net assets

7,366

7,810

Total liabilities and net assets

14,657

14,97229

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

Operating revenue

For the year ended
March 31, 2021
(from April 1, 2020 to March
31, 2021)
3,089(Millions of yen)
For the year ended
March 31, 2022
(from April 1, 2021 to March
31, 2022)
2,409

Operating costs

1,788

1,133

Operating gross profit

1,301

1,276

158

154

Selling, general and administrative expenses
Remuneration for directors(and other officers)
Salaries and allowances

244

289

Taxes and dues

147

145

Other

536

599

1,086

1,189

214

86

Interest income

78Dividend income21Foreign exchange gains

26

65

Gain on investments in investment partnerships

43

1

Outsourcing service income

4－

Total selling, general and administrative expenses
Operating profit
Non-operating income

Rental income from facilities

3

3

Miscellaneous income

00

Total non-operating income

88

82

129

106

－

0

Non-operating expenses
Interest expenses
Miscellaneous losses
Total non-operating expenses

129

106

173

61

Gain on sale of non-current assets

3－Gain on sale of investment securities

499

Ordinary profit
Extraordinary income

Gain on redemption of investment securities

8－

Total extraordinary income

1699

Loss on sale of investment securities－

107

Loss on valuation of investment securities

25－

Loss on redemption of investment securities

0－

Extraordinary losses

Other

2

0

Total extraordinary losses

29

107

Profit before income taxes

161

53

Income taxes - current

16

4

Total income taxes

16

4

Profit144

49

Profit attributable to owners of parent

144

49

30