Financial Results Overview
for the Year Ended
March 31, 2021
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: May 14, 2021

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

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Contents

1 SummaryP3

2 Results for FY Mar. 2021 (year-on-year)

P4

3 Achievement report for FY Mar. 2021

P9

4 New medium-term management plan (from Apr. 2021 to Mar. 2024)

P12

5 Result forecasts for FY 2022

P17

6 Appendix

P20

Note: The figures in this document are based on consolidated financial statements
prepared in accordance with the previous accounting standards.
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1. Summary
 Results for FY Mar. 2021 (year-on-year)••

Operating revenue of ¥3,089 million (up, 11.9% year on year) and profit of ¥144 million (down, 52.1% year onyear).
While revenues increased as the sales of shares progressed overseas, profit decreased due to a decline ingains on sale of mega solar projects and losses from a third-party operated fund.

 Achievement report for FY Mar. 2021•••

Plan achievement rate: Operating revenue: 95.1%; Final profit: 80.5%
While gains on sale of shares were significantly below the plan, 7 mega solar projects with a total of 18.3 MW
were sold (including partial sales) at a favorable opportunity.
Development of group homes for persons with disabilities progressed; with the expansion of sales channels forthe vegetable factory, the construction of the second plant commenced.

 New medium-term management plan (from Apr. 2021 to Mar. 2024)•••

Aim to become an investment company with SDGs as its core value.
Increase revenues from short-term divestment projects with relatively high feasibility and revenues from fee
business.
Aim to achieve final profit of ¥850 million in three years’ time.

 Result forecasts for FY 2022••

Operating revenues of ¥2,950 million (down 4.5% year on year) and final profit of ¥340 million (up 134.8% year
on year)
COVID-19’s impact on the JAIC Group continues to be expected to limited.

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2. Results for FY Mar. 2021 (year-on-year)

Outline of results

P5

Break down of operating revenue & operating cost

P8

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2. Results for FY Mar. 2021 (year-on-year) - Outline of results - I/S(million yen)

FY 2020 (4Q)
AmountFY 2021 (4Q)
AmountChangeOperating revenue

2,760

3,089

11.9%

Operating cost

1,401

1,788

27.6%

Operating gross profit

1,359

1,301

(4.3%)

SG&A expenses

1,094

1,086

(0.7%)

Operating income265

214 (19.2%)

Ordinary income

140

173

302

144 (52.1%)

Profit attributable to ownersof parent

23.5%

 Factors for increase in revenue:• A large-scale sale of unlisted shares abroad Factors for decrease in profit:• Gains on sale decreased as development cost for the sold mega solar projects was higher thanthat in the previous fiscal year.
• Losses from a third-party operated fundhttps://www.jaic-vc.co.jp-5-2. Results for FY Mar. 2021 (year-on-year) - Outline of results - B/S
As of Mar 2020

Total assets(a) Cash and deposits(b) Project oriented investment securities &loans
Strategic investment securities in partnercompanies
Financial investment securities after
deducting allowance for possible investment
loss





FY 2021 (4Q)

AmountAmount(million yen)(million yen)

15,8003,920

14,657
3,699

5,437

5,583

1,005

1,155

Changefluctuation factors(billion yen)

(7.2%)
repayments of loan (1.2), execution(5.6%) of investments & loans (1.8),

expenses etc.(0.9), collection +3.7
execution of investments & loans

2.7% +1.5, realized gain from funds +0.4,
distribution & collection (1.7)

execution of investments +0.21,

14.9% collection (0.07)

dexecution of investments +0.1,

4,282

3,111

distribution & collection (1.1),(27.3%) realized & unlrearized loss fromfunds (0.1)（c） Loans payable

8,166

6,950

(14.9%) repayments of loan (1.2)

Total shareholders' equity

7,223

7,338

1.6% unrealized gain (0.03)(a) + (b) - （c）

1,191

2,332

profit 0.14

95.7%

Project oriented investment: The balance was maintained by executing investments & loans while selling projects.
Financial investment: The balance decreased due to progress of collection.
Financial balance(*) : Loans repayment progressed and financial balance improved.
(*Note: Financial balance = Cash & deposits + project oriented investment – loans payable)

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2. Results for FY Mar. 2021 (year-on-year) - Outline of results - C/F(JPY million)

FY 2020 (4Q)

FY 2021 (4Q)

Operating CF

124

1,728

Investing CF

147

61

Financing CF(1,617)(1,216)

Change in Net CF(1,358)

577

2,723

3,301

Cash & cash equivalents at endof period Operating CF: Revenues increased due to the progress of investment collection and the decline in thebalance of operational investment securities.
 Financing CF: The extent of negative cash flow improved year on year due to the reduction of therepayment amount.

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2. Results for FY Mar. 2021 (year-on-year) Break down of operating revenue & operating cost
Total

（JPY million）

Private equity investment

Project oriented investment

FY 2020(4Q)

FY 2021(4Q)

FY 2020(4Q)

FY 2021(4Q)

FY 2020(4Q)

FY 2021(4Q)

2,760

3,089

1,104

1,638

1,656

1,451

Fund management fees etc.

199

169

195

162

3

7

Proceeds of sales of securities

2,349

2,221

806

1,341

1,542

880

Fund interests income etc.

172

648

87

126

84

522

Other operating reveue

40

49

14

8

25

41

1,401

1,788

760

1,090

640

697

965

1,249

476

662

489

587

245

194

245

194

-

-

Fund interests losses etc.

184

336

33

229

150

106

Other operating costs

5

7

5

4

-

3

1,359

1,301

343

547

1,015

754

Operating revenue

Operating cost
Cost of securities soldInvestment write-offs and Provision forallowance for possible investment losses

Operating gross profitPrivate equity investment - Increase in revenues and increase in operating gross profit.
•
Of operating revenue, proceeds of sales of securities, increased due to a large-scale sale of unlisted shares abroad.
•Of operating cost, fund interests losses etc., increased due to losses from a third-party operated fund.

Project oriented investment - decrease in revenues and decrease in operating gross profit.
•
Of operating revenues, while sale prices of all of 7 mega solar projects were recorded as proceeds of sales in FY 2020, sales
prices of 4 projects were recorded as proceeds of sales and sale prices of 3 projects were recorded as fund interests income,etc. in FY 2021.
•
Of operating cost, fund interests losses etc., decreased due to a drop in advance expenditure following an increase in sales fromthe vegetable plant.

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3. Achievement report for FY Mar. 2021

Numerical plan

P10

Action plan

P11

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3. Achievement report for FY Mar. 2021 –Numerical plan (announced at the beginning of the term)(million yen)

Result forcast

Actual
FY 2021
AmountFY. 2021(disclosed on 15 May 2020)

AmountProgression
ratio

Operating revenue

3,089

3,250

95.1%

Operating cost

1,788

1,800

99.4%

Operating gross profit

1,301

1,450

89.7%

SG&A expenses

1,086

1,100

98.8%

Operating income

214

350

61.3%

Ordinary income

173

200

87.0%

144

180

80.5%

Profit attributable toowners of parentGain on sale of shares: Decreased significantly due to the delay in new listings, sluggish stock prices and trading
volume of listed shares, delay in sale procedures of unlisted shares and unsuccessful negotiation thereof.



Unrealized loss and provision: Fell below the initial forecast as there were few investees whose business conditions
had deteriorated.

Gain on sale of projects: 7 mega solar projects with a total of 18.3 MW were sold (including partial sales) at afavorable opportunity.

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3. Achievement report for FY Mar. 2021 – Action plan
Action plan for 2nd half of FY Mar. 2021

Item
RenewableenergySmartagriculture

・Stabilize the supply of biogas and operate Hamura
Biogas Power Plant.
・Sell 7 mega solar projects (18.3MW) for whichelectricity is being sold.

Achievement
・Hamura Biogas Power Plant commenced selling electricity in March
2021.
・Achieved the sale of mega solar projects as planned.

・Make Sasayama Plant (lettuce) profitable and work on
the development of the second plant.
・Develop potential customers of strawberries grown at aplant operated by MD-Farm, which is JAIC’s strategic
investment target.

・Sales expanded at the vegetable factory (lettuce) as a result of thesuccessful development of sales channels targeting leading
convenience stores and the acquisition of meal replacement demandamid the COVID-19 pandemic. Commenced the construction of thesecond plant.
・Development of sales channels for MD-Farm (strawberries) has notbeen achieved yet and remains as a future challenge.

・Newly develop 2 group homes for handicapped people.
・Cooperate with financial institutions to consider methods
for expanding the scale of projects of group homes forhandicapped people.・Execute investment in 1 aged-care facility.

・Executed new loans for the 2 projects. Development of new projects
in cooperation with local financial institutions has been accelerating,and 6 development projects are currently in progress.
・Executed investment in an aged-care facility in Minami-Aoyama,
Minato-ku in January 2021.

・Develop potential users and buyers of the facilities that
JAIC has invested in.
・Proceed the development of new facilities and makeinvestment amounting to 1.2 billion yen in total.

・Development of tenants and potential buyers of existing projects has
not been achieved. Meanwhile, JAIC invested in 2 new projects withconfirmed tenants in 2H, but due to a delay in project development,
new investment in 2H remained at ¥150 million. Investment is expected
to progress after April 2021.

PrivateequityTake actions aimed at growth support and earlyliquidizing and monetization of existing investee
companies

Achieved large-scale investment collection overseas by facilitating theliquidation of unlisted shares. Sale of listed shares also progressed.

FA business

Engage in intermediary services as a financial advisor
based on the M&A needs obtained in the process ofcultivating promising companies for our investment

Expanded our network in Asia and cultivated potential M&A needs, but
we have not concluded the first contract yet.

Healthcare

Distribution
center

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4. New medium-term management plan (from Apr. 2021 to Mar. 2024)

Outline

P13

Efforts for SDGs

P14

Business Strategy

P15

Numerical Plan

P16

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4. New medium-term management plan - Outline
This new Medium-term Management Plan was formulated amidst the new coronavirus (COVID-19) outbreak, which began in the end of 2019, and the sudden changeof government. Our investment strategies promoted under the current Medium-term Management Plan are consistent with the outlook of the post-corona society, which
includes an overpopulation of cities, regional revitalization, accelerated deregulation and industry structural reforms. The new Medium-term Management Plan is built on
the current Plan and incorporates the above changes in the environment.
The basic elements that support the new are as below. Japan Asia Investment (JAIC) will promote investment activities under the new Medium-term Management Plan
based on a core value of conducting “SDGs investment that contributes to the future of Japan and Asian based on venture capital investment and an unique Asian
network.” By doing so, we hope to identify and support the growth of innovative businesses that will be developed in the post-corona society of Japan, which faces anaging and shrinking population.
1) Management policy
We will maintain the philosophy of current management policy to promote and manage investment activities. We will continue and maintain a policy of proactively
carrying out investment activities and related businesses focusing on venture capital investment and our network in Asia, based on our policy of becoming an
investment company that “contributes to the creation of more safe, secure, and higher productivity for aging society with fewer children.”2) Basic investment strategy
We aim to generate stable revenue and earn high private equity (PE) investment income by quickly restoring damaged balance sheets by promoting strategic PE
investment and Project oriented (PJ) investment based on our management policy. We will seek to add depth to promising venture firms and the profitable projects,
which should be our core assets. Also, simultaneously, we will try to minimize risks of investment assets by diversifying various PJ investment business.

3) Goals and objectives of specific investment activities
We will aim to achieve substantial investment share through PE investment and enhance added value of investee companies as well as investment return through hands-on support
using our entire resources. By thoroughly enforcing this investment method, we will improve our expertise and comprehensive strengths as an investment company. At the same
moment, we are aiming to develop all of our investment professionals to “think and act” as same as the company’s managers.

4) Becoming an SDGs investment company as our core value
We will thoroughly carry out investment activities with a strong awareness of SDGs based on our management policy. We will aim to contribute to the developmentof SDGs-related businesses and improve profitability by identifying venture firms that contribute to providing solutions for the realization of a safe, secure andproductive society.
5) Continuing investment activities that links Japan and Asia
We will contribute to maintaining the growth of the Japanese economy, which is facing sluggishness due to issues such as the shrinking and aging population, andthat of the declining rural areas through investment-related businesses. We will contribute to the growth of Asia and incorporating Asia’s growth into Japan throughinvestment activities by leveraging our skills in venture capital investment, our Asian network and our partnerships with regional financial institutions as a platform.
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4. New medium-term management plan – Efforts for SDGs
Becoming an SDGs investment company as our core value, we will thoroughly carry out investment
activities with a strong awareness of SDGs based on our management policy.

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4. New medium-term management plan – Business Strategy
Businessstrategy

Discover venture firms with a competitive edge to expand ourbusiness portfolio and develop them into a major business in the
future“Leverage the accumulated experience as a VC to discover promisingventure companies”

JAIC’s strength“Partnerstrategy”

Project
Investment

Administration
servicesfor funds

Liquidate existing assets and complete asset replacement.
Originate three new funds.
Support strategic partners to go on public. Cultivate newinvestment areas and promote strategic investment.

FA businesssuch as M&A
advisorybusiness

Distribution
center(logistics
warehouse)

Increase investments as a priority area.
Invest in early stages of PJs and achieve high returns byattracting later stage investors looking for middle-risk & middle
returns.

Healthcare(facilities forthe elderly)
RenewableenergyHealthcare

New Business
https://www.jaic-vc.co.jp＋ ≧Profits from PE
investment¥１.0 billion
Profits from fee
business¥0.２5 billion

Continue to invest in carefully selected projects

Increase investments in rooftop solar power generation PJ in
Vietnam and biogas PJ in Japan.
Sell mega solar projects in Japan after the completion to post
gain on sale.

Smartagriculture(vegetable
plant)(group homes forthe handicapped)

Accumulate pipelines and increase profits ofadvisory business by co-working with partners athome and abroad＝

SGA
expensesFee BusinessPE
Financialinvestment

FY Mar 2024
Forecast

ExcessprofitPE
Investment

PE
Strategic
investment

A sustainable revenue
structure

Profits from PJ
investment¥0.9 billion

Support to develop customer base such as major
convenience store and expand business size by
constructing additional plant up to No.4

Invest in 50 projects by originating funds from majorbanks and leasing companies

New
investment
area

Develop new investment area that will become a core
revenue generator from businesses related to existing
investment themes and other business themes which
may arise from corona crisis- 15 -

4. New medium-term management plan – Numerical Plan
Unit：¥M

1,010

139
250

1,400

381

1,080

987

745

940
709

390

578

290

340
302

292

234

Mar. '19 (Actual)Mar. '20 (Actual)

211

144

550

210

250

Mar. '23 (Planned)

Mar. '24 (Planned)

160

Mar. '21 (Estimated) Mar. '22 (Planned)

850

Gross Operating Profit from Private equity investment
Gross Operating Profit from Project investment
Gross Operating Profit from Fee incomes
Net income attributable to owners of the parent

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5. Result forecasts for FY Mar. 2022

Breakdown of result forecast

P18

Cautionary statements

P19

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5. Result forecasts for FY Mar. 2022- Breakdown of result forecast(million yen)

Actual FY 2021

Result forcast
FY2022

ChangeResult forcast
FY2022(2Q)

Operating revenue

3,089

2,950

(4.5%)

700

Operating cost

1,788

1,320 (26.2%)

360

Operating gross profit

1,301

1,630

25.3%

340

SG&A expenses

1,086

1,120

3.0%

560

Operating income

214

510 137.8%(220)

Ordinary income

173
144
2.0%

430 147.2%
340 134.8%
4.6% -

(250)
(250)
-

Profit attributable to owners of parent

ROE
•
•
•
•

Breakdown:
Proceeds of sales of securities (IPO)
Proceeds of sales of securities (Trade sales)
Profits from project oriented investment
Fund management fees
Others

700
1,600
460
120
70

Breakdown:
Cost of securities sold (IPO)
Cost of securities sold (Trade sales)
Investment write-offs & provisions
Costs from project oriented investment
Others

120
840
270
70
20

Operating income: ¥2.95 billion; Profit: ¥0.34 billion
A loss is expected for the first six-month period and the first nine-month period.
Proceeds of sale of securities are anticipated due to an IPO in Japan and a trade sale in China
Profits are anticipated from sales of 4 project oriented investments such as mega solar projects,
distribution center projects and others.

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5. Result forecasts for FY Mar. 2022- Cautionary statements

 The private equity investment business conducted by the Groupwill 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 rapidlychanging environment.
 For the convenience of investors and shareholders, however, we
disclose “result forecast consolidated under the Previous
Accounting Standard” even though it doesn’t have enoughrationality.
 The “result forecast consolidated under the Previous AccountingStandard” and any other forward-looking statements in thisdocument are based upon the information currently available to
JAIC and certain assumptions. The achievement is notpromised. Various factors could cause actual results to differ
materially from these result forecasts.
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6. Appendix

Renewable energy projects

P21

List of project oriented investments

P22

Strategic investment

P24

Asia network

P25

Funds & investment activities

P26

Business results & financial position

P27

Break down of operating revenue & operating cost

P28

Business field

P29

Core competence

P30

Profit structure

P31

Company data

P33

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6. Appendix - Renewable energy projects as of March 31, 2021

Mega solar projects
Started electricity sales 10 projects (12 power plants) 37.9 MW
Under construction or under planning
6 projects 32.6 MW
Total
16 projects (18 power plants) 70.5 MW
attributable to JAIC
26.7 MWTransfers to buyers other than the funds operated by the JAIC Group

30 projects

149.1 MW

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

Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
1 project 2.4MW
Fukushima, Solar,
1 project 2.7MW
1 project 2.4MW

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

Kumamoto, Solar
1 project 3.1MW

Hokkaido, Solar,
2 projects 18.0MW

Tochigi, Solar,
3 projects 6.0MW

Kagawa, Solar Mie,
4 projects 8.7MW Woody biomass, 1 project 2.0MW
Mega solar,
1 project 21.8MW
Wind power,
1 project at most 25.2MW

Tokyo, Bio gas,
1 project 1.1MW
Kanagawa, Solar,
1 project 2.4MW* Since our investment ratio differs in each project, the amount of JAIC’s investment or revenues from mega solar projects that are attributable to JAIC are notnecessarily linked to the MW figure of the project.
https://www.jaic-vc.co.jp- 21 -

6. Appendix - List of project oriented investments (as of March 2021)
Type ofproject
Solar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]1

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

3.1

Started electricity sales in Dec. 2015

40

2

Nomaike solar power plant(*)

2.4

Started electricity sales in May. 201736

3

Mitakabeike solar power plant(*)

1.5

Started electricity sales in Sep. 201732

4

Iwate Ichinoseki solar park(*)

2.4

Started electricity sales in Jan. 2018

36

5

Nakaoudaike solar power plant(*)

2.4

Started electricity sales in Apr. 201836

6

Higashioudaike solar power plant(*)

2.4

Started electricity sales in Jul. 201836

7

Mombetsu-shi Kodo solar power plant

15.7

Started electricity sales in Feb. 2020

40

8

Mie

21.8

Under construction or Under planning[Started electricity sales in May 2021]

24

9Fukushima

2.4

Under construction or Under planning32

10Hirono solar park

2.7

Started electricity sales in Feb. 2020

40

11

Akkeshi Luke Supor Solar Power Plant

2.3

Started electricity sales in May 202040

12Kanagawa

2.4

Under construction or Under planning

32

13

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

Started electricity sales in Mar.-May 2020

36

14

Tochigi

2.0

Under construction or Under planning36

15

Tochigi

2.0

Under construction or Under planning

32

16

Tochigi

2.0

Under construction or Under planning32

3.0 in total

Total 70.5MW [attributable to JAIC 26.7MW]*Projects that are invested from JAIC Solar Fund L.P., Ⅱ

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6. Appendix - List of project oriented investments (as of March 2021)
Type of project

No.

Woody biomass
Bio gas1

Location

Generation Capacity[MW]

Current status

FIT[tax excluded, ¥]Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018－

Hamura-shi, Tokyo

1.1

Started electricity sales in Mar. 2021

39

Food recycle company that generates
biogas for power generation[operator of Hamura biogas power
generation]

－

0.03

Started electricity sales in Nov. 201839

At most 25.2

Under construction or Under planning

22

2

3

Aomori Touhokumachi solar power plant

Wind power

Mie

Vegetable plant

Tambasasayama-shi, Hyogo－

Started operation in Mar. 2019－

Facilities for theelderly

1

Shinonome, Koto-ku, Tokyo－

Under construction or Under planning－

2

Minami aoyama, Minato-ku, Tokyo－

Under construction or Under planning－Group home1

Hamamatsu-shi, Shizuoka－

Started operation in Aug. 2020－

2

Utsunomiya-shi, Tochigi－

Under construction or Under planning－

3

Hiroshima-shi, Hiroshima－

Started operation in Aug. 2020－

4

Kazo-shi, Saitama－

Under construction or Under planning

－

Aichi

－

Opened*investment in building which has
already started operation－

1

Koshigaya-shi, Saitama－

Under construction or Under planning－

2

Atsugi-shi, Kanagawa－

Under construction or Under planning－3

Ebina-shi, Kanagawa－

Under construction or Under planning－

4

Ebina-shi, Kanagawa－

Under construction or Under planning－

5

Sayama-shi, Saitama－

Under construction or Under planning－

Commercial
building
Logistics
warehouse

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6. Appendix – Strategic investment

Renewable Japan Co., Ltd.

Smart Solar Corporationsocial inclu CO., LTD.

Partner company in mega solar
projects

Partner company in mega solar
projects

Partner company in projects forgroup homes for the handicapped

Year of first investment: 2015

Year of first investment: 2017

Year of first investment: 2019

Morihisa Engineering Co., Ltd.

MD-Farm

KIC Holdings Inc.

Partner company in smart
agriculture projects (vegetables)

Partner company in smart
agriculture projects (strawberries)

Partner company in distribution
warehouse projects

Year of first investment: 2019Year of first investment: 2019Year of first investment: 2020

https://www.jaic-vc.co.jp- 24 -

6. Appendix - Asia networkhttps://www.jaic-vc.co.jp- 25 -

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

16/3

17/3

18/3

19/3

20/3

21/3

New & increased funds

5,201

500

1,000

2,000

1,359

151

AUM of funds - total

39,33528,753

19,15016,494

17,39016,450

AUM of funds - JAIC

14,004

9,427

5,867

5,344

5,163

5,434

New investnemts (Total)

4,093

4,315

3,887

3,749

3,374

1,767

Balance of investments (Total)

18,783

16,55813,981

13,951

15,101

12,855New investnemts (project oriented investment)

2,788

3,184

2,681

3,612

2,150

1,445

Balance of investments (project oriented investment)

3,722

4,576

3,582

5,514

6,696

6,088

New investnemts (private equity)

1,304

1,131

1,205

136

1,224

322

Balance of investments (private Equity)

15,061

11,981

10,398

8,437

8,405

6,767

Note: Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed from FY March 2021 to include loans extended to the projects (excluding
distressed receivables) in the scope of aggregation.

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

16/3

17/3

18/3

19/3

20/3

21/3

Business results
Operating revenues

4,043

3,926

5,403

2,475

2,760

3,089

Operating gross profit

1,554

2,176

2,328

1,286

1,359

1,301

SG&A expenses

1,472

1,339

1,311

1,109

1,094

1,086

Operating income

82

836

1,017

177

265

214

Ordinary income

612

726

954

83

140

173

Net income

597

553

874

578

302

144

8,202

6,213

7,308

5,564

3,920

3,699

3,722

4,081

3,582

5,514

5,437

5,583

100

100

373

373

1,005

1,155

8,126

7,256

5,657

4,765

4,282

3,111

16,91014,128

11,954

9,784

8,166

6,950

Total shareholders' equity

4,976

5,686

6,545

6,840

7,223

7,338

Total assets

22,68020,305

19,22017,30515,80014,657

Financial position
Cash and deposits
Operational investment securities and operatingloans of project oriented investment
Operational investment securities of strategic
investment in partner companies
Operational investment securities of financial
investment after deducting allowance forpossible investment loss
Loans payable, bonds & bonds with subscription
rights to shares

https://www.jaic-vc.co.jp- 27 -

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

16/3

17/3

18/3

19/3

20/3

21/3

Change(%)

１． Fund management operation
Fund management fees and others

441

364

277

241

199

169

(14.7%)

Success Fees

288

101

86

-

-

-

-

Operating revenue

729

466

364

241

199

169

(14.7%)

-

-

-

-

-

-

-

729

466

364

241

199

169

(14.7%)

2,954

2,275

3,219

1,746

2,349

2,221

(5.4%)

345

1,159

1,677

429

172

648

277.0%

3,300

3,434

4,897

2,176

2,521

2,870

13.8%

1,863

1,423

2,469

554

965

1,249

29.4%

569

274

562

579

245

194

(20.8%)

47

46

36

49

184

336

82.6%

2,481

1,744

3,069

1,182

1,395

1,780

27.6%

818

1,690

1,827

993

1,125

1,090

(3.2%)

Operating revenue

13

25

142

57

40

49

22.4%

Operating cost

7

6

5

6

5

7

39.0%

Operating gross profit

5

19

136

51

34

41

19.6%

Operating revenues

4,043

3,926

5,403

2,475

2,760

3,089

11.9%

Operating cost

2,488

1,750

3,074

1,188

1,401

1,788

27.6%

Operating gross profit

1,554

2,176

2,328

1,286

1,359

1,301

(4.3%)

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

Total

https://www.jaic-vc.co.jp- 28 -

6. Appendix - Business field

Private equity investment

Strategic investment

Project oriented investment

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

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

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

https://www.jaic-vc.co.jp- 29 -

6. Appendix - Core competence
Historical background in Asian
regionCapability to capture up-to-datebusiness information
Through the activity of exploringpromising companies and investment
opportunities, JAIC has capability tocapture highly professional and cuttingedge information on various corporates.

Since its establishment in 1981 by the Japan
Association of Corporate Executives (Keizai
Doyukai), JAIC has contributed to economic
exchange between Japan and Asian
countries over 35 years which led to highname recognition.

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

JAIC’s accumulated invested volume insideand outside of Japan is Japanese Yen 330
billion.
For the project oriented investment, in
addition to providing direct equity investment,
JAIC has been arranging various financing
scheme utilizing project-finance approachand leverage financing together with financial
institutions.
- 30 -

6. Appendix - Profit structure – Project oriented investment

•

•
•
•

We invest in SPCs (special purpose companies) that own facilities such as power plants, factories,
residential facilities and warehouses. We construct these facilities and receive the profits generated by
the operation of the facilities in proportion to the investment. In some cases, these facilities are sold forprofits after completion.
We invest in projects such as renewable energy, healthcare (facility for the elderly, group homes for thedisabled), smart agriculture (plant factory), and distribution center (logistics warehouse).
We are pursuing high profitability with a small amount of investment funds by procuring non recourse
loans from financial institutions. Most of the funds for the construction and operation of the project is
procured by these loans.
In addition, in order to flexibly invest in projects in various fields, we collaborate with venture companies
that are familiar with project planning and development.

https://www.jaic-vc.co.jp- 31 -

6. Appendix - Profit structure – Private equity investment

•
•
•
•
•

Private equity investment is an investment in promising companies centered on venture companies and small andmedium-sized enterprises in the Asian region including Japan. We support investee companies to increase theircorporate value and obtain capital gains.
We also perform intermediary business as an FA based on the needs of M & A obtained through our investment
activities.
There are two types of private equity investments. One is "strategic investments" in partners of project oriented
investment and the other is "financial investments".
For investees of strategic investments, we not only support them as shareholders, but also manage projects together aspartners and support their growth.
For investees of financial investment, we provide not only the listing support but also provide overseas expansion
support and sales support. We utilize our experience and wide network which we have built up through many years ofinvestment activities when we support our investees. To that end, we are building a network in Asia by forming businessalliances with government agencies in China and partner companies in Asian countries.

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

6. Appendix - Company data (as of March 31, 2021)
Company name

Japan Asia Investment Co., Ltd.

Head office

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

Established

July 10, 1981

Paid-in capital

5,426 million yen

Listed market

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

Employees

38 (Consolidated) /19 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

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

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

Abbreviation; JAIC

- 33 -

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

The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued
accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties including changes to economic
circumstances may cause results and projections to differ materially from those presented in the document.
The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAIC.
The figures in this document is based on consolidated financial statements.
https://www.jaic-vc.co.jp- 34 -