Financial Results Overview
for the 2nd Quarter Ended
September 30, 2021
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: November 12, 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.

https://www.jaic-vc.co.jp-1-

Contents

1 SummaryP3

2 Results for 2Q of FY Mar. 2022 (year-on-year)

P4

3 Result forecasts for FY 2022

P9

4 Business plan progress report

P12

5 Appendix

P20

Note: The figures in this document are based on consolidated financial statements
prepared in accordance with the previous accounting standards.
https://www.jaic-vc.co.jp-2-

1. Summary
 Results for 2Q of FY Mar. 2022 (year-on-year)•••

Operating revenue of ¥ 381 million (down, 29.6 % year on year) and deficit of ¥ 643 million (widened by ¥307
million year on year).
The main factors for decrease in operating revenue were a decrease in proceeds of sales of listed shares anda decrease in revenue from selling electricity.
The deficit widened due to a decrease in capital gains and a increase in investment write-offs and provision forallowance for possible investment losses.

 Result forecasts for FY 2022••

Full-year earnings forecasts remain unchanged. The downside from the plan in the first half is expected to beoffset by the upside in capital gains in the second half.
The progression ratio of operating revenue in the first half was 54.4% and the deficit in the first half exceeded
the plan by about 0.4 billion yen.

 Business plan progress report
We will thoroughly carry out investment activities with a strong awareness of SDGs based on ourmanagement policy.
• Invested in a new distribution center project in Hidaka City, Saitama in Apr. ‘21• KIC Koshigaya Distribution Center has newly been built up in Koshigaya City, Saitama, in Oct. ‘21• Expanding the vegetable plant in Tamba Sasayama City, Hyogo, in Sep. ‘21• Invested in a fund that invests in group homes for the handicapped, in Aug. ‘21• A group home for the handicapped has newly been built up in Utsunomiya City, Tochigi, in Sep. ‘21• "Financial Institution YOM" No. 40 was published as a special issue commemorating our 40th anniversary
https://www.jaic-vc.co.jp-3-

2. Results for 2Q of FY Mar. 2022

Outline of results

P5

Break down of operating revenue & operating cost

P8

https://www.jaic-vc.co.jp-4-

2. Results for 2Q of FY Mar. 2022 - Outline of results - I/S(million yen)

FY 2021 (2Q)
AmountFY 2022 (2Q)
AmountChangeOperating revenue541

381 (29.6%)

Operating cost

313

327

Operating gross profit227

53 (76.4%)

SG&A expenses

544

550

1.2%

Operating income

(316)

(496)

-

Ordinary income

(335)

(538)

-

(336)

(643)

-

Profit attributable to ownersof parent

4.4%

 Factors for decrease in revenue:• Proceeds of sales of listed shares with high profit margins decreased• Revenue from selling electricity decreased due to the sale of some mega solar projects in theprevious fiscal year Factors for decrease in profit:• Capital gains decreased due to unlisted shares of an investee those were liquidated byprioritizing collection of funds over capital gain
• Investment write-offs and provision for allowance for possible investment losses increased due
to a increase in investee companies whose business conditions have deteriorated
https://www.jaic-vc.co.jp-5-2. Results for 2Q of FY Mar. 2022 - Outline of results - B/S
As of Mar 2021

Total assets

Amount(million yen)(million yen)

14,657

13,740fluctuation factors

Change(billion yen)

(6.3%)
repayments of loan (0.7), execution

2,015

5,583

6,475

16.0% +0.9

1,155

1,483

28.4% execution of investments +0.4

3,111

2,974

(4.4%) distribution & collection (0.2)

Loans payable

6,950

6,253

(10.0%) repayments of loan (0.7)

Total shareholders' equity

7,338

6,640

(9.5%) unrealized gain (0.05)

Project oriented investment securities &loans
Strategic investment securities in partnercompanies
Financial investment securities after
deducting allowance for possible investment
loss




Amount3,699

Cash and deposits



FY 2022 (2Q)

(45.5%) of investments & loans (1.4),

expenses etc.(0.5), collection +0.9
execution of investments & loans

execution of investments +0.1,

loss (0.64)

Cash and deposits temporarily decreased due to the progress of investment execution and loan repayment prior to
the return on investment.
Asset replacement is in progress from financial investment to project oriented investment and strategic investment.
After securing investment funds for future growth, we repay the debt and steadily reduce the balance.

https://www.jaic-vc.co.jp-6-

2. Results for 2Q of FY Mar. 2022 - Outline of results - C/F(JPY million)

FY 2021 (2Q)

FY 2022 (2Q)

Operating CF

326(1,232)

Investing CF

(13)

55

Financing CF

(697)

(697)

Change in Net CF(396)(1,855)

2,326

1,445

Cash & cash equivalents at endof period Operating CF turned negative as investment execution progressed while investment recovery
decreased.

https://www.jaic-vc.co.jp-7-

2. Results for 2Q of FY Mar. 2022 - Break down of operating revenue & operating cost
Total

（JPY million）

FY 2022(2Q)

FY 2021(2Q)

FY 2022(2Q)

FY 2021(2Q)

FY 2022(2Q)

541

381

402

293

139

87

Fund management fees etc.

82

81

79

77

3

3

Proceeds of sales of securities

232

176

232

176

0

-

Fund interests income etc.

198

95

85

32

113

63

Other operating reveue

26

27

4

7

22

19

313

327

239

292

74

35

85

131

85

131

0

0

(62)

124

(62)

124

-

-

Fund interests losses etc.

285

66

213

34

72

31

Other operating costs

3

4

2

1

1

2

227

53

162

1

64

51

Operating cost
Cost of securities soldInvestment write-offs and Provision forallowance for possible investment
lossesOperating gross profitProject oriented investment

FY 2021(2Q)

Operating revenuePrivate equity investment

Private equity investment – Revenue decreased and operating gross profit decreased•
Of operating revenue, proceeds of sales of securities decreased due to a decrease in proceeds of sales of listed shares•
Of operating cost, cost of securities sold, increased due to unlisted shares of an investee those were liquidated by prioritizingcollection of funds over capital gain•
Of operating cost, investment write-offs and provision for allowance for possible investment losses, increased due to a increase
in investee companies whose business conditions have deteriorated
Project oriented investment – Revenue decreased and operating gross profit decreased•
Of operating revenue, fund interests income etc., decreased due to the sale of some mega solar projects that are sellingelectricity in the previous fiscal year•
Of operating cost, fund interests losses etc., decreased due to a drop in advance cost from the vegetable plant

https://www.jaic-vc.co.jp-8-

3. Result forecasts for FY Mar. 2022

Breakdown of result forecast

P10

Cautionary statements

P11

https://www.jaic-vc.co.jp-9-

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

Actual
FY 2022(2Q)

Amount•(disclosed on 14 May 2021)(disclosed on 14 May 2021)

Amountachievement
ratio

AmountProgression
ratio

700

54.4%

2,950

12.9%

Operating cost

327

360

90.9%

1,320

24.8%

53

340

15.8%

1,630

3.3%

SG&A expenses

550

560

98.3%

1,120

49.2%

Operating income

(496)

(220)

-

510

-

Ordinary income

(538)

(250)

-

430

-

(643)

(250)

-

340

-

owners of parent•

FY. 2022

381

Profit attributable to•

Result forcast

FY2022 (2Q)

Operating revenue

Operating gross profit•

Result forcast

Full-year earnings forecasts remain unchanged. The downside from the plan in the first half is
expected to be offset by the upside in capital gains in the second half.
The achievement ratio of operating revenue in the first half was 54.4% and the deficit in the first half
exceeded the plan by about 0.4 billion yen.
In the first half, the expected sale of unlisted shares was delayed from the next fiscal year onward, andextraordinary losses from the fund operated by the third party was incurred outside the forecast.
In the second half, capital gains are expected to increase due to IPOs of domestic investees that are
not expected at the beginning of the term. The sale of projects such as mega solar is also expected asplanned at the beginning of the term.

https://www.jaic-vc.co.jp- 10 -

3. 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 doesnʼt 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.
https://www.jaic-vc.co.jp- 11 -

4. Business plan progress report

Outline

P13

Distribution centre project

P14

Smart agriculture project

P16

Healthcare project, group home for the handicapped

P17

The 40th anniversary of establishment

P19

https://www.jaic-vc.co.jp- 12 -

4. Business plan progress report – Outline
Businessstrategy

JAICʼs strength

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

Action plan for 3 years

PE
Investment

PE
Strategic
investment

Fee Business
Project
Investment

PE
Financialinvestment

Administration
servicesfor funds

Liquidate existing assets and complete asset replacement.
Originate three new funds.
Support strategic partners to go on public. Cultivate new investmentareas 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 by attracting
later stage investors looking for middle-risk & middle returns.

Healthcare(facilities forthe elderly)
Renewableenergy(group homes forthe handicapped)

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

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.

Smart
agriculture(vegetable
plant)
Healthcare

Accumulate pipelines and increase profits of advisory businessby co-working with partners at home and abroad

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

6 months progress••

Formed a business alliance with AIS CAPITAL
LIMITED, a group of experts in cross-borderinvestment between Japan and China.
••

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 fromcorona crisis

Invested in 2 new distribution center
projects
KIC Koshigaya Distribution Center has
been built up

Successful development of projects invested inprevious years
Under negotiation to sell domestic mega solar
projects
Expanding the vegetable plant to expand
production capacity•

Invest in 50 projects by originating funds from major banks and leasing
companies

1 fund has been established by the joint
venture with Aozora Bank
Strategic investees have successfully
developed their business••

Invested in a fund with Showa Leasing
Co., Ltd. and others
1 group home has started its operation
Funded 3 new projects

Working on multiple new businesses inpartnership with venture companies- 13 -

4. Business plan progress report - Distribution center - New investment

KIC Sayamahidaka Distribution Center
RenderingPartner company:
KIC Holdings
Location

Hidaka City, Saitama

Accessapproximately 500m from the
Ken-O Expressway"Sayamahidaka IC",
approximately 4.8km from
Seibu Shinjuku Line "Sayama
City" Station

Outline ofwarehouse(scheduled)

Total floor space: 15,123㎡,
4 floors above ground

Completion

Undecided

https://www.jaic-vc.co.jp- 14 -

4. Business plan progress report - Distribution center - Completion

KIC Koshigaya Distribution Center has been built up [Oct. ‘21]

Partner company:
KIC Holdings

KIC Holdings has improved the land with poor roads by its development
capabilities and remade the distribution center into a convenient location withconvenient transportation.
This facility is a low environmental load distribution center equipped with a
combined power supply system, and 60% of the power used by the facility iscovered by sunlight.
Location

Koshigaya City, Saitama

Access• approximately 6km from TOHOKU Expressway Urawa IC• approximately 10 minutes on foot from TOBU SKYTREELine Oobukuro station

Total floor space

11,250m², 4 floors above groundhttps://www.jaic-vc.co.jp- 15 -

4. Business plan progress report - Smart agriculture - Expansion of vegetable plant

Expanding Tamba Sasayama Plant, which
grows leaf lettuce, in the adjacent land

Partnercompany:
MorihisaEngineering
Front: 2nd factory (expansion part), back: 1st factory (existing part)
Outline of the second plant (expansion part)
Outline of the first plant (existing part)
Operation

Started in Mar. 2019

Plant type

Completely closed

Crops

Leaf lettuce

Production

Approx. 200 tons p.a.

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

Scheduled operation

Full-scale operation scheduled for
December 2021

Plant type

Completely closed

Crops

Leaf lettuce

Production

Approx. 470 tons p.a.
（Total amount with existing part）- 16 -

4. Business plan progress report - Group home for the handicapped – New fundExecuted anonymous partnership investment with Showa
Leasing Co., Ltd and Uni-Asia Investment Co., Ltd to
support business development of our strategic investee,Social Inclu

Partner company:
Social Inclu

Name of fundAnonymous partnershipinvestor

GK GH Property
GK GH Investment[Anonymous partnership investors；Showa Leasing Co., Ltd., Uni-Asia investment Co.,
Ltd. and JAIC]

Operator of group homes
Investment target

Social Inclu
24-hours support service type group homes for the handicapped such as Social Inclu
Home Funabashi Kanasugi, Social Inclu Home Atami Midorigaoka and others

https://www.jaic-vc.co.jp- 17 -

4. Business plan progress report - Group home for the handicapped - Completion

Social Inclu Home Utsunomiya TakaragichoPartner company:
Social Inclu

Location

Type of grouphome

20 for residents, 2 forshort-stay
24-hours support service
type

Operation

Started in Sep. 2021

No. of rooms

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

Utsunomiya City, Tochigi- 18 -

4. Business plan progress report – the 40th anniversary of establishment

Our company celebrated its 40th
anniversary in July 2021. We
would like to express our deep
gratitude for your support.
Ricky Business Solutions Co., Ltd.
has published "Financial
Institution YOM" No. 40 as a
special issue commemorating our
40th anniversary.
Introducing our SDGs investment
efforts with abundant examples.
http://www.ginkouin.com/
https://www.jaic-vc.co.jp- 19 -

5. Appendix

Renewable energy projects

P21

List of project oriented investments

P22

Strategic investment

P25

Asia network

P26

Funds & investment activities

P27

Business results & financial position

P28

Break down of operating revenue & operating cost

P29

Business field

P30

Core competence

P31

Profit structure

P32

Efforts for SDGs

P34

Company data

P35

https://www.jaic-vc.co.jp- 20 -

5. Appendix - Renewable energy projects as of September 30, 2021

Mega solar projects
Started electricity sales 11 projects (13 power plants) 59.7 MW
Under construction or under planning
5 projects 10.8 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 -

5. Appendix - List of project oriented investments (as of September 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

Tsu Solar Power Plant

21.8

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

https://www.jaic-vc.co.jp- 22 -

5. Appendix - List of project oriented investments (as of September 2021)
Type of project

No.

Woody biomass
Bio gas1

Location

Generation Capacity[MW]

Current status

FIT[tax excluded, ¥]Matsusaka City, Mie

2.0Started electricity sales in Jan. 2018－

Hamura City, 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
Wind power

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

Touhoku Town, AomoriMie- 23 -

5. Appendix - List of project oriented investments (as of September 2021)
Type of project

No.

Group homehttps://www.jaic-vc.co.jp

Current status

Tamba Sasayama City, Hyogo

Annual production: 470 tons in total

1

Shinonome, Koto-ku, Tokyo

8-story complex facility with a capacity of 100
peopleUnder construction or Under planning

2

Minami aoyama, Minato-ku, Tokyo

5-story facility with a capacity of 61 people

Under construction or Under planning

1

Hamamatsu City, Shizuoka

Started operation in Aug. 2020

2

Utsunomiya City, Tochigi

Started operations in Sep. 2021

3

Hiroshima City, Hiroshima

Started operation in Aug. 2020

4

Kazo City, Saitama

5

Koga City, Ibaragi

6

Tatebayashi City, Gunma

7

Kawagoe City, Saitama

20 rooms for residents, 2 rooms for short stay
Under construction or Under planning

Aichi

Site area 1,752 m², 1 basement floor, 6 floors
above ground

Opened*investment in building which has
already started operation

1

Koshigaya City, Saitama

Total floor area 11,250 m², 4 stories above ground

Under construction or Under planning[completed in Oct. 2021]

2

Atsugi City, Kanagawa

Total floor area 10,890 m² (scheduled), 2 stories
above ground

Under construction or Under planning3

Ebina City, Kanagawa

Undecided

Under construction or Under planning

4

Hidaka City, Saitama

Total floor area 15,123 m², 4 stories above
groundUnder construction or Under planning5

Non-disclosed

Non-disclosed

Under construction or Under planning

Commercial
building

Logistics
warehouse

Project scale

Existing part: started operation in Mar.
2019
Expansion part: full-scale operation
scheduled for December 2021

Vegetable plant

Facilities for theelderly

Location- 24 -

5. 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.
Morvel Farm (subsidiary of

MD-Farm

KIC Holdings Inc.

Partner company in smart
agriculture projects (strawberries)

Partner company in distribution
warehouse projects

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

Morihisa Engineering)Partner company in smart
agriculture projects (vegetables)
Year of first investment: 2019https://www.jaic-vc.co.jp- 25 -

5. Appendix - Asia networkhttps://www.jaic-vc.co.jp- 26 -

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

17/3

18/3

19/3

20/3

21/3

21/3(2Q)

22/3(2Q)

New & increased funds

500

1,000

2,000

1,359

151

151

1,001

AUM of funds - total *1

28,753

19,15016,494

17,39016,45017,567

15,884

AUM of funds - JAIC *1

9,427

5,867

5,344

5,163

5,434

5,239

4,716

New investnemts (Total)*2

4,315

3,887

3,749

3,374

1,767

654

2,214

Balance of investments (Total)*2

16,55813,981

13,951

15,101

12,855

14,585

14,741

New investnemts (project oriented investment)*2

3,184

2,681

3,612

2,150

1,445

495

932

Balance of investments (project oriented investment)*2

4,576

3,582

5,514

6,696

6,088

6,209

6,986

New investnemts (private equity)*2

1,131

1,205

136

1,224

322

158

1,282

Balance of investments (private Equity)*2

11,981

10,398

8,437

8,405

6,767

8,375

7,754

Note 1: 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 FY March 2021.
Note 2: 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.

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

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

17/3

18/3

19/3

20/3

21/3

21/3(2Q)

22/3(2Q)

Business results
Operating revenues

3,926

5,403

2,475

2,760

3,089

541

381

Operating gross profit

2,176

2,328

1,286

1,359

1,301

227

53

SG&A expenses

1,339

1,311

1,109

1,094

1,086

544

550

Operating income

836

1,017

177

265

214

(316)

(496)

Ordinary income

726

954

83

140

173

(335)

(538)

Net income

553

874

578

302

144

(336)

(643)

6,213

7,308

5,564

3,920

3,699

3,515

2,015

4,081

3,582

5,514

5,437

5,583

4,915

6,475

100

373

373

1,005

1,155

1,155

1,483

7,256

5,657

4,765

4,282

3,111

3,926

2,974

14,128

11,954

9,784

8,166

6,950

7,469

6,253

Total shareholders' equity

5,686

6,545

6,840

7,223

7,338

6,732

6,640

Total assets

20,305

19,22017,30515,80014,657

14,58013,740Financial 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- 28 -

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

17/3

18/3

19/3

20/3

21/3

21/3(2Q)

22/3(2Q)

Change(%)

１． Fund management operation
Fund management fees and others

364

277

241

199

169

82

81

(1.8%)

Success Fees

101

86

-

-

-

-

-

-

Operating revenue

466

364

241

199

169

82

81

(1.8%)

-

-

-

-

-

-

-

-

466

364

241

199

169

82

81

(1.8%)

Proceeds of sales of securities (A)

2,275

3,219

1,746

2,349

2,221

232

176

(24.3%)

Fund interests income etc.

1,159

1,677

429

172

648

198

95

(51.7%)

3,434

4,897

2,176

2,521

2,870

431

272

(36.9%)

1,423

2,469

554

965

1,249

85

131

53.1%

274

562

579

245

194

(62)

124

-

46

36

49

184

336

285

66

(76.7%)

Operating cost

1,744

3,069

1,182

1,395

1,780

309

322

4.2%

Operating gross profit

1,690

1,827

993

1,125

1,090

122

(50)

-

Operating revenue

25

142

57

40

49

26

27

2.5%

Operating cost

6

5

6

5

7

3

4

26.1%

Operating gross profit

19

136

51

34

41

23

22

(1.3%)

Operating revenues

3,926

5,403

2,475

2,760

3,089

541

381

(29.6%)

Operating cost

1,750

3,074

1,188

1,401

1,788

313

327

4.4%

Operating gross profit

2,176

2,328

1,286

1,359

1,301

227

53

(76.4%)

Operating cost
Operating gross profit
２． Investment operation

Operating revenue
Cost of securities sold (B)Investment write-oﬀs and Provision for allowancefor possible investment losses ( C)Fund interests losses etc.

３． Others

Total

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

5. 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- 30 -

5. 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.
- 31 -

5. 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- 32 -

5. 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- 33 -

5. Appendix – 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.

https://www.jaic-vc.co.jp- 34 -

5. Appendix - Company data (as of September 30, 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

39 (Consolidated) /20 (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

- 35 -

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- 36 -