This document has been translated from a part of the Japaneseoriginal for reference purposes only. In the event of any
discrepancy between this translated document and theJapanese original, the original shall prevail. JAIC assumes noresponsibility for this translation or for direct, indirect or any
other forms of damages arising from the translation.

Qualitative Information on Consolidated Operating
Results for Nine Months Ended December 31, 2023
(1) Outline of consolidated operating results
The consolidated operating results of the JAIC Group for the third quarterof the current fiscal year under review (from April 1, 2023 to December
31, 2023) recorded operating revenue of 1,728 million yen (down 48.8 %year-on-year), operating gross profit of 142 million yen (down 89.3 %year-on-year), operating loss of 829 million yen (compared to operating
income of 233 million yen for the same period of the previous fiscal year),ordinary loss of 942 million yen (compared to ordinary income of 127
million yen for the same period of the previous fiscal year) and loss
attributable to owners of parent of 1,273 million yen (compared to loss
attributable to owners of parent of 103 million yen for the same period of
the previous fiscal year). Due to sluggish sales of private equity
investments and the absence of sales of project-oriented investments,
operating revenue decreased and the deficit widened substantiallycompared to the same period of the previous fiscal year. The breakdown
and background of operating results are as follows.
(a) Breakdown of operating revenue and operating cost
(Fund management fees)
Fundmanagement

fees

etc.

consistofmanagement

feesandadministrative fees from investment funds. Fund management fees etc.
increased to 92 million yen (ｕｐ 6.4 % year-on-year), due to increase of
the administrative fees.
(Investment income)The proceeds of sale of operational investment securities decreased to1 / 7

816 million yen (down 59.1 % year-on-year). Realized capital gain, whichis calculated by deducting cost of securities sold from proceeds of salesof operational investment securities, also decreased to 479 million yen(down 50.7 % year-on-year).
As for private equity investment, JAIC did not execute stock sales withrelatively large deal size. As for project-oriented investment, for the same
period of the previous fiscal year JAIC had sold 1 mega solar project,however, JAIC did not sale any project-oriented investment for the third
quarter of the current fiscal year under review.
The total amount of investment write-offs and provision for allowance forpossible investment losses increased to 607 million yen (up 31.0 % yearon-year). JAIC posted provisions for portfolio companies with relatively
large investment amount, because their business progress had beenslower than planned.
As a result, investment income, which is calculated by deducting
investment write-offs and provision for allowance for possible investment
losses from realized capital gains, was in the red, resulting in investment
loss of 127 million yen (compared to investment income of 508 million
yen for the same period of the previous fiscal year).
(Fund interests income, etc.)
Fund interests income, etc. consist of revenues of the projects operated
by the JAIC Group (such as revenue from electricity sales, revenue fromvegetable sales, rent fee revenue from group home for disabled people
and other revenues), interests income from the projects operated byother companies (such as net profits of the projects and gains from thesale of projects), interests income from the private equity funds operated
by other companies, interest income, dividend income and other income.
The total amount of fund interests income, etc. for the third quarter ofthe current fiscal year under review decreased to 790 million yen (down38.2 % year-on-year).
Operational dividend income and interests income from the projects
operated by other companies decreased, respectively. 2 projects had
been sold for the same period of the previous fiscal year, however, noproject was sold for the third quarter of the current fiscal year underreview.
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On the other hand, revenues of the projects operated by the JAIC Group
increased to 742 million yen (up 30.6 % year-on-year). The revenues
increased because JAIC has launched new mega-solar projects and newgroup homes for disabled people. Additionally, JAIC has scaled up
existing projects.
(Fund interests losses, etc.)
Fund interests losses, etc. consist of costs of the projects operated by
the JAIC Group (such as cost of electricity sales, cost of producing
vegetables, rental cost of group home for disabled people and othercosts), interests losses from the projects operated by other companies(such as losses mainly from projects in the early stage of launch),interests losses from the private equity funds operated by othercompanies, and other losses.
The total amount of fund interests losses etc. for the third quarter of thecurrent fiscal year under review increased to 629 million yen (up 13.3 %year-on-year). While the cost of producing vegetables decreased, thecosts increased from new projects and existing projects those expanded
their business scale.
As a result, operating revenue decreased by 48.8 % year-on-year to 1,728
million yen, operating cost decreased by 22.8 % year-on-year to 1,586
million yen and operating gross profit decreased by 89.3 % year-on-year
to 142 million yen.
(b) Selling, general and administrative expenses
The total amount of selling, general and administrative expenses
decreased to 972 million yen (down 10.9 % year-on-year). For the same
period of the previous fiscal year, there were provision for doubtful debts
of 102 million yen, however, there was no provision for doubtful debts forthe third quarter of the current fiscal year under review.
(c) Other profit and loss items
Among the profit and loss items other than (a) and (b) above, net income
attributable to non-controlling shareholders is the item that deserves
special mention for the third quarter of the current fiscal year under3 / 7

review.
This item is the profit attributable to fund investors other than the JAIC
Group among the profits of the funds and projects operated by the JAIC
Group. The amount increased to 326 million yen (up 145.8 % year-onyear) because the profits of the funds and the profits of the projects
increased.
As a result, the deficit widened compared to the same period of theprevious fiscal year. Loss attributable to owners of parent amounted to1,273 million yen (compared to loss attributable to owners of parent of
103 million yen for the same period of the previous fiscal year).
(2) Cash flows
Cash and cash equivalents as of December 31, 2023, decreased by 580
million yen from March 31, 2023, to 1,181 million yen. The main factors
for increase and decrease are as follows:(Cash flow from operating activities)
Net cash generated from operating activities decreased to 234 million
yen (compared to 517 million yen generated from for the same period of
the previous fiscal year). The return on operational investment securities
through the redemption of bonds has progressed, however, widened
deficit decreased the cash flow.
(Cash flow from financing activities)
Net cash used in financing activities with repayments of long-termborrowings increased to 828 million yen (compared to 806 million yen
used in for the same period of the previous fiscal year).
(3) Financial position(Assets)
Total assets as of December 31, 2023, decreased to 16,847 million yen(compared to 18,775 million yen as of March 31, 2023).
Cash and deposits decreased to 2,415 million yen (compared to 3,130
million yen as of March 31, 2023) reflecting on investment execution andrepayments of borrowings.
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Property, plant and equipment increased to 6,072 million yen (comparedto 5,432 million yen as of March 31, 2023) due to constructing new grouphomes for disabled people and new mega-solar projects.
Operational investment securities as of December 31, 2023, decreased
to 6,798 million yen (compared to 9,375 million yen as of March 31,2023). Loss from unlisted shares and divestment of listed shares led thedecrease of the balance of operational investment securities.
Allowance for possible investment losses as of December 31, 2023,
decreased to 965 million yen (compared to 1,588 million yen as of March31, 2023) due to withdrawals associated with investment collection.
As a result, the investment loss provision ratio (ratio of allowance forpossible investment losses to operational investment securities) as ofDecember 31, 2023, fell by 2.7 points from March 31, 2023 to 14.2 %.
(Liabilities)
Total liabilities as of December 31, 2023, increased to 10,088 million yen(compared to 9,673 million yen as of March 31, 2023). Accrued expenses
and suspense receipt increased, respectively.
Of liabilities, total of loans payable and bonds as of December 31, 2023,increased to 9,114 million yen (compared to 8,993 million yen as of March31, 2023).
Due to repayment, loans payable of JAIC itself decreased to 4,314 million
yen (compared to 5,137 million yen as of March 31, 2023).
As for project finance and bonds for the projects operated by the JAIC
Group, the balance as of December 31, 2023 increased to 4,799 million
yen (compared to 3,856 million yen as of March 31, 2023). A new megasola project and several projects of group home for disabled people haveraised new debt.
Project finance and bond for the projects operated by the JAIC Group willlimitedly affect the financial soundness of the JAIC Group, since its
source of repayments is limited to the assets and revenues of theprojects. Therefore, the JAIC Group will continue to expand fundprocurement through project finance and bond. The JAIC Group will
promote leveraged investment in a wide range of projects such as
renewable energy projects operated by the JAIC Group. This enhances
profitability of the JAIC Group while maintaining financial soundness.
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(Net assets)
Of net assets, total shareholders’ equity as of December 31, 2023,
decreased to 6,021 million yen (compared to 7,581 million yen as ofMarch 31, 2023) due to loss attributable to owners of parent and adecrease in unrealized gain of listed shares. As a result, the equity ratio
as of December 31, 2023, fell by 4.7 points to 35.7 % (compared to40.4% as of March 31, 2023).
Non-controlling interests also decreased to 701 million yen (compared to1,487 million yen as of March 31, 2023), because unrealized gain of listed
shares held by the funds decreased and the funds executed distributions.
As a result, total net assets as of December 31, 2023 decreased to 6,759
million yen (compared to 9,101 million yen as of March 31, 2023).
(4) Business Position(a) Investment and loan activities
For the third quarter of the current fiscal year under review, execution ofinvestments and loans decreased by 17.1 % year-on-year to 1,932 million
yen in 25 companies/projects. As of December 31, 2023, the balance ofinvestments

andloans

companies/projects

decreased(comparedtoto12,951

14,133

millionmillionyenin125

yenin131

companies/projects as of March 31, 2023).
Looking at project-oriented investment, it decreased by 27.0 % year-onyear to 826 million yen in 16 projects that total amount of execution ofinvestments and loans in new projects and in existing projects. The
amount of investments in mega-solar projects decreased. As forinvestments in group homes for disabled people, the number ofinvestments increased, but the amount of investment per project wassmall.
As for investment collection, redemption of bonds and distributions fromexisting projects decreased the balance. Fund interest income/loss also
increased/decreased the balance. As a result, the balance of investments
and loans as of December 31, 2023, decreased to 6,968 million yen in 56
projects (compared to 7,123 million yen in 50 projects as of March 31,2023).
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Looking at private equity investment, it decreased by 7.7 % year-on-year
to 1,105 million yen in ９ companies that total amount of execution ofinvestments and loans in new companies and in existing companies.
The fund which supporting the business succession needs increased
financial investments. On the other hand, other financial investments andstrategic investments decreased.
As for investment collection, JAIC sold unlisted shares overseas. JAIC also
posted loss to unlisted shares overseas. As a result, the balance ofinvestments and loans decreased to 5,983 million yen in 69 companies(compared to 7,010 million yen in 81 companies as of March 31, 2023).
(b) Management of investment funds
JAIC Group is responsible for management, operation or provision ofinvestment information for investment funds under its management. Asof December 31, 2023, the number of the investment funds totaled 8,
and the balance of total commitment amounts under management
decreased to 15,416 million yen (compared to 9 investment funds with
15,850 million yen as of March 31, 2023).
For the third quarter of the current fiscal year under review, 1 fund withthe commitment amount of 1,880 million yen decreased due tocompletion of liquidation procedures. On the other hand, “Succession
Investment Limited Partnership, Ⅱ” increased its commitment amounts by
1,400 million yen and completed the final closing with a total amount of
5,101 million yen. Foreign exchange fluctuation also increased thebalance of total commitment amounts.

(End)

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