JIC Activities – Focus / Directions

July 16, 2024
Japan Investment Corporation

About JICJIC•

Japan Investment Corporation is an investment company established in September 2018 under theIndustrial Competitiveness Enhancement Act. Its primary aim is to contribute to the realization of policy
objectives by strengthening industrial competitiveness through open innovation and expanding private
sector investment.

•JIC provides risk capital for strategic areas through LP investments in funds under JIC’s umbrella and inprivate funds.

JIC Group
INCJ, Ltd. (Established: September 2018)
Established via company split from Innovation Network Corporation of Japan. Transcending
industrial and organizational barriers, INCJ, Ltd. engages in investment activities aimed atfostering and creating next-generation national wealth industries through open innovation.

JIC Venture Growth Investments Co., Ltd. (Established: July 2020)
JIC Venture Growth Investments Co., Ltd. helps to improve Japan's international competitivenessby promoting innovation that helps resolve social and industrial issues in Japan.

JIC Capital, Ltd. (Established: September 2020)(C) JIC. All Rights Reserved.

JIC Capital, Ltd. provides risk capital for the creation of new industries to realize Society 5.0, thepromotion of business restructuring to strengthen international competitiveness, and theconstruction of next generation social infrastructure and digital transformation (DX).

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JIC Fund Investments• In principle, JIC invests in funds, while JIC VGI and JIC Capital, which are
under JIC’s umbrella, invest in companies.
Private Investors

Investment in JIC Group funds

LP investment in private funds
Funds that meet JIC’s evaluation criteria*
1. Contribute to resolving policy issues
2. Areas with insufficient private investment

3. Investment evaluation (ability to execute

JIC VGIJIC PE(growth-stage startups)(buyouts, large growth)Specific fields,strategies

investment strategy and expectations for results)

Individual investment from the funds are made by decisions of managers of each fundCompany(C) JIC. All Rights Reserved.

CompanyCompany

Company

Company* In addition to the perspectives mentioned, comprehensive consideration will also be given to the subscription conditions,
growth stage of the fund (manager), and JIC’s role and portfolio.

2Status of JIC Fund Investment Commitments(as of March 31, 2024)•A management structure was initiated in December 2019, and subsequent to intensive system development
and organizational restructuring, investment activity is now in full swing. JIC’s investment commitments toprivate funds and funds managed by subsidiaries, JIC VGI and JIC Capital, are as follows:

Private VC・PE Fund

Funds: 38
Total commitments: JPY185.3 billion

StrategyRegion

No. of Funds

Pledged Amount

Domestic25

JPY87.3 billion

Overseas

11 (*)JPY64.0 billion

Domestic

２

JPY34.0 billion

VCPE(converted using the exchange rate for Mar. 31, 2024)* Invests in foreign startups, considering policy objectives from thefollowing perspectives:✓ Promoting open innovation among domestic companies✓ Leveraging overseas ecosystems to commercialize Japanese
drug discovery seeds✓ Strengthening collaboration between domestic VCs/startups andoverseas VCs(C) JIC. All Rights Reserved.

JIC VGIJIC PE(growth-stage startups)(buyouts, large growth)

VGF1: JPY120 billion (Sep. 2020)
VGF2: JPY200 billion (Jan. 2023)
Opportunity Fund:
JPY40 billion (Sep. 2023)

PEF1: JPY200 billion(Nov. 2020)

PEFJ1: JPY900 billion(Oct. 2022: decision to change)• The amount of co-investment fund wasincreased in response to the number oflarge- scale deals which has been inincreasing trend after the fund wasestablished in 2020, and because JIC
could be active when the policy-relateddeal is included.

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JIC activities in FY2023•

In light of the government’s five-year startup development plan, JIC continued VC and PE investments in
FY2023.

Investment activities
1. LP investment in private funds
Number of new investments in FY2023: 10 (cumulative total: 38), committed amount: approx. JPY35.6 billion* (cumulativetotal: approx. JPY185.3 billion)* Committed amount includes additional commitment amount toexisting fund at subsequent closing.

2. Investment by JIC VGI
Number of new investments in FY2023: 18 (cumulative total: 67); investment amount: approx. 18.3 billion yen* (cumulativetotal: approx. 94.3 billion yen)
* Investment amount includes supplementary investments
JICVGI Opportunity Fund No.1 established in September. Number of new investments: 2
3. Investment by JIC CapitalIn FY2023, completed the acquisition of one investment and announced two new investments

Ecosystem building
1. Promote investment in overseas VCs to strengthen ties between domestic VCs/startups and overseas VCs
2. Provide continuous support and advice to portfolio funds on fund management and other related matters, enablingthem to secure capital from domestic and overseas institutional investors in the future
3. Support for business restructuring and next-generation technology development to strengthen international
competitiveness

Organization & Structure
1. JIC Group newly hired executives/employees: 22. Strengthen investment-related divisions in line with expansion offund investment and research activities, etc. In addition to investment-related division, JIC newly hired personnel
responsible for expanding opportunities for collaboration between domestic VCs/startups and overseas VCs.
(C) JIC. All Rights Reserved.

* All figures are as of March 31, 2024

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JIC Activities Focus / Directions
VC, Startup•Fucus areas: Deep Tech, Life Science, Pre-Seed/Seed, Growth, Go Global① JIC VGI has been focusing on growth investments while it has made investments to create newindustries including the Deep Tech and Life Science areas from early stage. IPO: 5 out of 67
investments (cumulative) (as of June 2024).
② Under the Go Global strategy, JIC established new sub-theme investing into global accelerators topromote Japanese start-ups to Go Global. Aims for introducing / fostering cutting-edge knowledge,
functions and players from the global market to the Japanese market.
(As of June 2024:Funds in Go Global strategy includes NEA, Vertex, Atomico, ANV, Headline Asia,Transpose/Y Combinator)

PE••Continue PE investments by JICC in buyout and large growth areas to contribute to strengthening
industrial competitiveness
JICC investment projects:① JSR: completed majority-controlled buyout to support the planning of medium- to long-term growth strategies, which willlead to strengthening the international competitiveness of Japan’s semiconductor materials industry through structuralreform and industry reorganization.
② Shinko electric industries: Provide firm support for the commercialization of the advanced semiconductor packaging tocontribute to strengthening the international competitiveness of Japan’s semiconductor industry.

Discuss new investments in addition to steadily executing these projects.

(C) JIC. All Rights Reserved.

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Response to Extension of Operational Period•The Amendment Act of the Industrial Competitiveness Enhancement Act which extended JIC’s operational period to endMarch 2050 was promulgated and enforced on June 7, 2024. JIC will continue to play a role in the growth anddevelopment of the risk capital including startups and private equity in Japan from a medium- to long-term
perspective. For example, JIC will continue to focus on the investment fields that require time for growth andcommercialization such as Deep Tech (Space, etc.) and Energy-related areas as well as industry restructuring throughcarve-outs and roll-ups. JIC will discuss to improve the organizational structure, etc. that will be required to proceed withthese activities.

<Response to extension of the operational period>① Strengthen management and organizational operations, recruitment and training and structure with aview to operate the company to 2050✓✓

Secure professionals who are qualified to make investments in new areas(Initiative to be considered) Re-evaluate the working conditions for investment professionals and other including
compensation system
Ensure appropriate governance and develop operational systems in response to the extension of operational period(Initiatives to be considered ) Strengthen monitoring of investee companies, Secure appropriate portfolio management,
Enhance talent development / Build mechanisms for operational efficiencies and knowledge sharing② Develop corporate culture / values for long-term operations✓✓

Promote and communicate DE&I and other social initiatives internally and externally through investment
activities(Initiatives to be considered)
Incorporate the perspectives above in investment decision and monitoring
Strengthen collaboration both internally and externally including the government(Initiatives to be considered)

Promote personnel exchanges within and outside the company③ Support growth of the Japanese ecosystem through introducing global perspectives✓

Improve industry practices and raise standards across the industry as a whole(Initiatives to be considered)
Encourage to apply global best practices through enhanced collaboration withoverseas VCs
Foster GPs with a global perspective through fund investments(C) JIC. All Rights Reserved.

6DE&I Updates
Since the announcement to fully commit to DE&I as JIC group’s important management strategy, it has implemented avariety of activities to promote DE&I along with ESG initiatives.

Internal①②③

Launch of DE&I Promotion Committee
Launched DE&I Promotion Committee to discuss and decide initiatives to be implemented in JIC group and DE&I Promotion
Team (26 JIC group voluntary employees) to develop and propose initiatives
Code of Conduct modification
Explicitly put DE&I promotion in the Code of Conduct and reflect in executives and employee evaluation criteria
In-House Training
Held LGBTQ training for all of JIC group executives and employees

Related to investment activities / Public awareness and Communication①②③④

PRI signing (Oct. 2023)
Signed the Principles for Responsible Investment (PRI) as part of ESG investment promotion
Formulation of “Policy on Environmental, Social and Governance (ESG) Initiatives” (Oct. 2023)
Incorporate ESG perspectives into investment decision in line with this policy* In-house training on ESG, responsible investment, and PRI is scheduled for November 2024
JIC Investment Monitoring and Hearings
Conducted monitoring of domestic investee VCs (20 GPs) regarding the status of DE&I efforts. Interviews with overseas
investee companies are ongoing. Interviews will be conducted on a regular basis.
Public Awareness and Communication
Attended domestic and international events, such as the Women’s Private Equity Summit APAC, the Japan Private Equity
Association Annual Meeting, and SuperReturn Asia 2023. Published Interviews with investee that engages in DE&I andESG-conscious management and investment and related articles on JIC website.

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