Financial Results Overview
for the Year Ended
March 31, 2019Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: May 15, 2019
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 2019 (year-on-year basis)

P4

3 Progress of medium-term business plan

P9

4 Result forecast for FY Mar 2020

P19

5 Business Report

P21

6 Appendix

P33

The figures in this document are based on consolidated financial statements prepared inaccordance with the previous accounting standards.
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1. Summary
 Results for FY March 2019 (year-on-year basis)• Revenues decreased by 54.2% ; net profit decreased by 33.8%.
• The decrease in revenues was a result of sale of projects in the last year.
• There were profits (operating revenue, extraordinary income) from funds managed by third parties.
• Achieved financial soundness targets due to an increase in assets of project oriented investment.
 Progress of medium-term business plan
• Achieved 71.7% of operating revenue target, 123.1% of net profit target.
• Achieved stability of performance by compensating for the shortage of sale of stocks with the sale ofmega solar projects.
• Revised part of the plan, reflecting advance development costs for project oriented investments.
• While the achievement of an expansion of stable revenue will be delayed, we will increase
unrealized gains of project oriented investments through aggressive investment.
• We will aim for net income of 0.7 billion yen and ROE of 9% for FY March 2021.
 Result forecast FY Mar 2020
• Operating revenue forecast: increased by 41.4%; final profit forecast: decreased 13.6%• Profit is expected to be concentrated in Q4.
• Net income is expected to decrease due to a decline in extraordinary income and the incurrence oftax.
• We expect to acquire gains from the sale of stocks through IPOs in Japan and abroad. If there is adrop in the gains, they will be compensated for by the sale of projects.
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2. Results for FY March 2019 (year-on-year basis)

Outline of results

P5

Break down of operating revenue & operating costP8

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2. Results for FY March 2019 (year-on-year basis) – Outline of results – I/S
FY 2019(Actual)FY 2018(Actual)AmountComposition
AmountComposition(million yen)ratio
(million yen)ratio

ChangeOperating revenue

5,403

100.0%

2,475

100.0%(54.2%)

Operating cost
Operating gross profit

3,074
2,328

56.9%
43.1%

1,188
1,286

48.0%
52.0%

(61.3%)(44.8%)

SG&A expenses

1,311

24.3%

1,109

44.8%

(15.5%)

Operating income

1,017

18.8%

177

7.2%

(82.6%)

Ordinary Income
Profit attributable to owners of parent

954
874

17.7%
16.2%

83
578

3.4%
23.4%

(91.2%)(33.8%)

Stable revenues (*)
Percentage of stable revenues to SG&A

296
22.6%

-

348
31.4%

-

17.4%
-

 Year on year: 54.2% drop in revenues; 33.8% drop in net profit; the drop was a result of the sale of 9
projects worth 81.8 MW in the last year.
 A certain level of net income was secured through the generation of extraordinary income.
 Stable revenues: 17.4% Increased year on year as proceeds from renewable energy projects
compensated for the cost of projects under construction.

(*) Stable revenues: Management fees ＋ project oriented revenues except project oriented investment capital gain and subsidy income ＋ PE investment
income gain.
http://www.jaic-vc.co.jp-5-2. Results for FY March 2019 (year-on-year basis) – Outline of results – B/S

FY 2019(Actual)FY Mar 2018
(Actual)AmountComposition
AmountComposition(million yen)ratio
(million yen)ratio
19,220100.0%
17,305100.0%

Total assets

Change(10.0%)(a) Cash and deposits

7,308

38.0%

5,564

32.2%

(23.9%)(b) Operational investment securities(Project oriented investment)

3,582

18.6%

5,514

31.9%

53.9%

Operational investment securities after
deducting Allowance for possible investment
loss (Private equity)

6,030

31.4%

5,138

29.7%

(14.8%)（c） Loans payable

11,954

62.2%

9,784

56.5%

(18.2%)

Total shareholders' equity

6,545

34.1%

6,840

39.5%

4.5%

(a) + (b) - （ c）

(1,063)

-

1,294

-

-

 Project oriented investment assets increased due to progress of investment execution and control of thesale Outstanding loans payable were ¥9.7 bn. 79％ was reduced from the peak (incl. bonds).
 The balance between the total amount of cash & deposits and project oriented investments exceeded
the balance of outstanding borrowings.
 We achieved the balance that was the financial soundness target.
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2. Results for FY March 2019 (year-on-year basis) – Outline of results – C/F(JPY million)

Operating CF
Investing CF
Financing CF
Change in Net CF
Cash & Cash Equivalents
at End of Period

18/3
1,870
238
(2,173)
(57)

19/3
299
1,224
(2,173)
(675)

4,757

4,082

 Operating CF: Net cash provided was ¥299 million
The amount of cash provided is less than the previous term due to less sales ofstocks and projects.
 Investing CF: Net cash provided was ¥1,224 million
The amount of cash provided has increased from the previous term due to fundredemption and liquidizing of investment securities.
 Financing CF: Net cash used was ¥2,173 million due to repayment of borrowings
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2. Results for FY March 2019 (year-on-year basis) –Break down of operating revenue & operating cost
Total

（JPY million）

FY 2018(Actual)
5,403

FY 2019(Actual)Private equity investment
FY 2019
FY 2018(Actual)(Actual)
1,875
1,474

Project oriented investment
FY 2019
FY 2018(Actual)(Actual)
3,528
1,000

2,469

2,475
241
1,746
406
23
57
1,188
554

Investment write-offs and Provision for allowancefor possible investment losses

562

579

562

579

-

-

Fund interests losses etc.
Other operating costs
Operating Gross Profit

36
5
2,328

49
6
1,286

34
5
268

49
6
514

2
2,060

772

Operating revenue
Fund management fees and others
Success Fees
Proceeds of sales of securities
Fund interests income etc.
Income gains
Other operating reveue
Operating Cost
Cost of securities sold

277
86
3,219
1,612
64
142
3,074

2
1,783
1,592
24
126
1,467

1,004

239
865
315
22
31
960
325

1,465

1
881
90
1
26
228
228

275
86
1,436
20
40
16
1,607

 In private equity investment, while proceeds of sales decreased, operating gross profit
increased year on year due to a rise in interests income from funds managed by third
parties.
 In project oriented investment, both Proceeds of sales of securities and Fund interests
income etc. decreased year on year as a result of the sale of 9 projects, including a large
project, of 81.8 MW in total and subsidy income in the last year.
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3. Progress of medium-term business plan

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

Outline of the medium-term business plan

P10

Selected business themes

P11

Achievement of financial result forecast

P12

Private equity investment

P13

Project oriented investment

P15

Priority measures for year 2 and onwards

P17

New KPI（Key Performance Indicator）

P18

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3. Progress of medium-term business plan – Outline of the medium-term business plan

JAIC aims to secure profit and funds through the sale of private equity (PE)’s existing portfolio.
JAIC aims to increase stable revenues by replacing private equity (PE)’s existing portfolio to morelucrative assets based on a new investment policy.
Reduce contractual repayments and vitalize investment activities by increasing borrowings on a fundconsolidated basis
Its ultimate aim is to secure further sustainable growth investment activity derived from stable revenues
and cash flows .

Stage 2
(Goal)

Further growthinvestment funds
obtained from

Sales of existing

stable revenues

Stage 1
(The current mediumterm plan period)

PE portfolio

and cash flows

Increase investment
assets under new
investment strategy＝ Increase stablerevenues

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3. Progress of medium-term business plan – Selected business themes
Business themes are selected in view of JAIC’s strengths, originality, size of the markets and capability to access themarkets.

Strengths,
originality① Ability to capture and gather useful information on emerging markets② A network of large volume of VB alliance candidates③ Ability to structure financing schemes utilizing the skills and experience accumulated as along time listed investment company

Access to markets① Promising market where social needs are high and constant growth can be expected② The investment area where JAIC has certain expertise to exercise appropriate judgement
and evaluation of products and technologies③ An area where credible and capable business partner to support JAIC can be arranged

Business theme

Existing business themeNew business themes



http://www.jaic-vc.co.jp“Renewable energy”

“Smart agriculture (plant factory)”“Healthcare (nursing care, medical facilities)”- 11 -

3. Progress of medium-term business plan – Achievement of financial result forecast
Previous accounting standard

Result forcast
FY2019at the start of term

Actual 2019/3

Amount(million yen)AmountProgression(million yen)
ratio

3,450

2,475

71.7%

240
2,800
400
10

241
865
881
315
90
81

100.6%
30.9%
22.6%
810.9%

1,650

1,188

72.1%

Cost of securities sold (private equity)
Cost of securities sold (project)

1,300
-

325
228

25.1%
-

Investment write-offs & provision for allowance forpossible investment losses

350

579

165.5%

Others-55-

Operating revenue
Fund management operation
Proceeds of sales of securities (private eqity)
Proceeds of sales of securities (project)
Fund interests income etc. (private eqity)
Fund interests income etc. (project)
OthersOperating cost

Operating gross profit
SG&A expenses
Operating income
Ordinary Income
Profit attributable to owners of parent

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

1,800
1,100
700
550
470

1,286 71.5%
1,109 100.8%
177 25.3%
83 15.3%
578 123.1%

 Achieved 71.7% of
operating revenue target,
123.1% of net income target A drop in the sales ofstocks was the factor for
failure to achieve theoperating revenue target
 Interests income from funds
managed by third parties,
an increase in project sales,
and the generation of
extraordinary incomecompensated for the
shortage of the sale ofstocks Net income surpassed thetargeted level- 12 -

3. Progress of medium-term business plan – Private equity investment
Private equity investment FY2019

1,400
Operating gross profit
forcast(960)

Capital gain

(229)

266

Write-offs & provision

Fund interest income
(net)

38
Incomegain & fees

Unit:¥M

400
Gain on redemption ofFund (net)914
Actual Gains from the sale of stocks dropped due to failure of IPOs ofinvestees and sales negotiations to proceed as planned.
 More write-offs and allowances for overseas investees with a long
investment period were incurred than planned
 Fund interests income/loss (operating revenue, operating cost) fromfunds managed by third parties were generated earlier than expected.
 Gain/loss on redemption of funds (extraordinary loss/income) weregenerated from private equity funds that were transferred fromoperating assets to investment securities in the process of past
restructuring.
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3. Progress of medium-term business plan – Private equity investment
Plan

Progress

Sale of existing
portfolio• IPOs and sale negotiations for expected investees did
not proceed as planned, resulting in gains on sales
falling short of target.
• Unplanned profits from third party funds tocompensate for part of the shortage.

Establishment offunds• A ¥3 billion investment fund that targets SMEs withbusiness succession problems was established with
the Aozora Bank.
• Currently planning two funds with Asian themes.

Strategic investment（Principal
investments）

Investments inpartner companies• If further cooperation with partner companies ofexisting projects progresses, they can be expected as
candidates for strategic investment.
• We are discovering venture firms with whombusiness cooperation is possible and considering
them as our partner company candidates.

Contracted CVC
operation

Increaseadministrative
contract fees by
accepting contracts
of fundadministration.

• We have gained a total of 37 billion yen of new fundadministration contract work for nine investment
funds, mainly CVC, at subsidiary JAIC Business
Service Co., Ltd.

Item

Financial Investment（Investments by funds
under management）

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3. Progress of medium-term business plan – Project oriented investment
Unit:¥M
Project oriented investment FY2019

400
Operating gross profit
forcast19
Overshooting of stablerevenue

(300)

653

Gains from short-term sales Gains from sales of longterm held projects

772
Actual Gains from sales of projects for Short-term trading fell short of target
as the time spent from investment to sale was more than expected.
 Projects for long-term holding purposes were sold, achieving an overallprofit that exceeded the target.
 The ability to compensate for the drop in other revenues with the saleof projects for long-term holding purposes is the fruit of the expansionof unrealized gains of project oriented investment assets over the last
several years.
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3. Progress of medium-term business plan – Project oriented investment
Item

Renewable energy

Smart agriculture

Healthcare

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

Plan

Progress• Carry out
investment inprojects meant for
short-term saleand acquire gains
from the sales• Although one 1-billion-yen investment was made anrecovered, the recording of the profit will be delayed
to FY March 2020.
• We increased sales of projects for long-term holding
purposes to compensate for the above, with four
projects (8.2 MW) sold during the term.
• We added a ¥0.1 billion investment into a project thatwas changed from long-term holding purpose toshort-term sale.

• Carry out
investment in highFIT projects,
mainly in megasolar

• We carried out a total of ¥2 billion investments
in nine projects, including a renewable energy
project other than mega solar.

• Carry out
investment in plantfactories• Invested in the first project, which waslaunched in March 2019.

• Carry out
investment innursing carefacility projects• Although there were three planned projects, neitherof them were successful in the bid for the land andfailed to be originated as projects• Although investment to improve the value of an
existing nursing care facility was considered, we
failed to invest, as we were preceded by anothercompany.

- 16 -

3. Progress of medium-term business plan
– Priority measures for year 2 and onwards

Private equity
investment• In addition to achieving sale proceeds from IPOs, liquidize unlisted shares and non-operating
assets.
• Establish two funds those aim to assist overseas expansion of Japanese companies andforeign direct investment into Japan.
• Strengthen external networks (in Japan and Asia) and establish a global support structure.
Start initiatives in FA business centered around cross-border M&As.
• Create a new bankable (i.e., debt financing from financial institutions is possible) businessand carry out strategic investments in partner companies in addition to investing in projects ofthe business.
• Renewable energy:Place top priority on mega solar projects but continue aggressive
investment in new biogas and biomass projects as well, despite initial development costs,
since investment opportunities in high profitability projects have time constraints.

• Smart agriculture:Although there will be initial development costs, put the first plant factory
Project oriented on track, expecting to expand scale in a short period of time, and invest in subsequent
projects.
investment• Healthcare:Since bidding for construction land has become difficult due to a surge in land
prices, focus on profitability instead of quantity and invest selectively in nursing care facility
development projects.

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3. Progress of medium-term business plan – New KPI (Key Performance Indicator)

Strategy

Expand stable revenue
from project oriented
investment assets

Replacement of private
equity investment assets

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

Key goal indicator

FY2021

Final profit

0.7 billion yen

ROE

9％
KPI
FY2019KPI
FY2021

Balance of project oriented investment
assets

5.5 billion yen

9.0 billion yen

Unrealized gains of project oriented
investment assets (expected cumulative
profits before discounting)

7.0 billion yen

20 billion yen

Balance between the sum of cash anddeposits and project oriented investment
assets and borrowings＋1.3 billion yen+5.6 billion yen

Promotion of early liquidizing andmonetization of existing assets

Balance of investment
5.1 billion yen（net of provisions）

Balance of investment
1.0 billion yen（net of provisions）

・Establishment of funds for new
investments
・Implementation of strategic investments

Balance of investment
0.37 billion yen

Balance of investment
1.0 billion yen

Measures- 18 -

4. Result forecast for FY Mar 2020 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 at the time of writing and certain assumptions. The
achievement is not promised. Various factors could cause actual
results to differ materially from these result forecasts.
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4. Result forecast for FY Mar 2020
Previous accounting standard

Operating revenue
Operating cost
Operating gross profit
SG&A expenses
Operating income
Ordinary Income
Profit attributable to owners of parent

ROE







Actual FY 2019

Result forcast
FY2020ChangeResult forcast FY2020(2Q) accumulated

Amount（million yen）

Amount(million yen)

ChangeAmount(million yen)

2,475
1,188
1,286
1,109
177
83
578
8.6%

3,500
1,600
1,900
1,100
800
650
500
7.4%

600
290
310
550
(240)
(320)
(330)

41.4%
34.6%
47.7%
(0.8%)
350.9%
674.8%(13.6%)--We expect 41.4% increase in operating revenue, 674.8% increase in ordinary income,
13.6% drop in net income. And ROE is expected to drop due to a decline in net income.
We anticipate IPOs of investees in Japan and abroad, with expected increases in revenue
and ordinary income due to sales of stocks.
Net income is expected to drop due to lack of extraordinary income and incurrence of tax.
If there is a drop in the sales of stocks, they will be compensated for by sales of projects.
Gains from sales of stocks are expected to be concentrated in 4Q, with a deficit expectedin the first half.

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5. Business report

Private equity investment

P22

Project oriented investment

P27

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5. Business report - Private equity investment – investment funds

Business succession fund reached a total of ¥3 bn.
as of the final closing～Established with the aim of contributing to regional revitalization and providing
solutions to the business succession challenges facing SMEs in Japan～

Name

Succession Investment Limited Partnership, Ⅰ

Fund managementcompany

AJ Capital Co., Ltd.
* A 50:50 joint venture by JAIC and Aozora Bank, Ltd.

Investors

AJ Capital, Aozora Bank, Ehime Bank,
Financial Products Group, Kirayaka Bank, Towa Bank,
Tottori Bank, Bank of Toyama, JAIC, Hokuto Bank,
Miyazaki Taiyo Bank, Japan Post Bank as well as otherfinancial institutions

Total commitment amount¥ 3 billion ( as of Oct 2018)

Main investment target

SMEs in Japan with business succession challenges

Date of establishment

June 26, 2017

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5. Business report - Private equity investment – investment funds

We are planning two funds with Asian themes

Theme

Assist globalization of small and medium-sized companies
across Japan(Support overseas business expansion and assist growthby capturing inbound demand)

Expected investors

Regional financial institutions

Expected
establishment date

During FY2020

Theme

Assist the growth of Japan’s medium-sized manufacturers
in cooperation with overseas investors

Expected investors

Chinese institutional investors

Expected
establishment date

During FY2020

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5. Business report - Private equity investment – IPO

VALUENEX Japan Inc.

MINKABU THE
INFONOID,Inc.

Listed on TSE Mothers on Oct. 30, 2018 Listed on TSE Mothers on Mar. 19, 2019

Business：

Business：

Providing ASP licensing services for big
data analytics of patents (TechRadar)and documents (DocRadar), andoffering consulting services utilizingthese tools and unique methodologies

Financial media business andinformational fintech solution business,
utilizing content generating technology
with its proprietary artificial intelligenceand crowd inputs

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5. Business report - Private equity investment – Investment execution case

Investment execution : 4 companies, ¥0.13 bn.
LIGUA, Inc.
Top-class share in solution services fororthopedic and osteopathic clinics

Patient information
management system”LigooPOS&CRM”

Electric treatment device“EMS-indepth-”

瀋陽中元宜和生物科技有限公司
Start-up firm that develops and manufactures
artificial insemination medical device for
medical institutions

Egg cellcollector

Artificial
fertilization tube

Embryotransplant
conduitLast One Mile Co., Ltd.
Last one mile businesses that provide a onestop service for lifelines, IT services, IoT andinfrastructure.
http://www.jaic-vc.co.jp

1 IoT-relatedcompany- 25 -

5. Business report - Private equity investment – Investment balance

Investment balance : 108 companies, ¥8.4 bn.
【Breakdown by area】【Breakdown by industry】

Others; 11co.

0.3bn.
China,HK &Taiwan;42co.

Japan;

Others;11co.
Service; 1.1bn.
14co.
1.2bn. Total

QOL;
29co.

3.5bn.
Total 3.0bn. 55co.
108 companies
Precision
108 companies
machine;0.5bn. ¥8.4 bn.
¥8.4 bn.
6co.

5.2bn.

2.1bn.

IT;
48co.

Average investment amount per company (unit: ¥ million)：
Japan 54, China, HK & Taiwan 122 / QOL 122, IT 44
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5. Business report - Project oriented investment – Investment execution

Investment execution : 12 projects, ¥3.6 bn.
No.

Location

Project type

Generation capacity

Notes

1

Mie

Wind power

At most 25.2MW

Existing project2

Hokkaido

Solar power

2.0MW

New project

3

Gifu

Solar power

20.0MW

Short-term recovery planned project(Already recovered during the term)

4

AomoriBio gas power

0.03MW

New project

5

Iwate

Solar power

2.7MW

Existing project

6

Hyogo

Plant factory-

1st project for JAIC

7

Kumamoto

Solar power

11.8MW

New project8

Fukushima

Solar power

2.7MW

New project9

Fukuoka

Solar power

2.9MW

New project10

Kanagawa

Solar power

2.4MW

New project

11

Mie

Solar power

21.8MW

Existing project

12

Hokkaido

Solar power

2.3MW

New project

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

5. Business report - Project oriented investment - Renewable energy projects
as of March. 31, 2019

Mega solar projects
Started electricity sales
Under construction or under planning
Total
attributable to JAIC

12 projects 29.8 MW
9 projects 64.0 MW
21 projects 93.8 MW
50.4MW

Hokkaido, Solar,
1 project 4.4MW
3 projects 20.0MW

other than above

Transferred

22 projects

Aomori, Bio gas,
1project 0.03MW

119.7 MW

Iwate, Solar,
4 projects 10.0MW

Other renewable energy projects
Woody biomass; Started electricity sales 1 project 2.0 MW
Bio gas; Started electricity sales
1 project 0.03 MW
Bio gas; Under construction
1 project 1.6 MW
Wind power; Under planning
1 project at most 25.2 MW
Fukuoka, Solar
1 project
2.9MW

Kumamoto, Solar
1 project 3.1MW
1project 11.8MW

Tokyo, Bio gas,1project 1.6MW

Miyagi, Solar,
1 project 2.4MW
Fukushima, Solar,
1 project 1.2MW
2 projects 5.1MW
Kanagawa, Solar,
1 project 2.4MW

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* 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.
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5. Business report – Project oriented investment- Renewable energy projects – case study 1

Aquatic power plant in Nakaoudaike and Higashioudaike, Sanuki,
Kagawa Prefecture started electricity sales

Nakaoudaike solar power plant

Higashioudaike solar power plant

Started electricity sales in Apr. 2018

Started electricity sales in July. 2018

Maximum output

Maximum output：approx. 2.4MW*Solar cell panel system capacity basis

Feed-in tariff : 36/kWh [ex. Tax]：approx. 2.4MW*Solar cell panel system capacity basis

Feed-in tariff : 36/kWh [ex. Tax]

By constructing the power plant on water, costs for reclamation work to flatten the ground for panel installation will
become unnecessary
Solar radiation conditions are good since there are no obstacles around
The temperature of the panels are kept low due to the cooling effect of the water‘s surface, enabling the power
plant to maintain power generation efficiency

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5. Business report – Project oriented investment- Renewable energy projects – case study 2

Mega solar sharing power plant

Ichinoseki-shi Yoshitaka solar power plant

Ichinoseki-shi Suzugasawa solar power plant

Started electricity sales in June 2018

Started electricity sales in October 2018

Maximum output: approx. 2.6MW

Maximum output: approx. 2.7MW*Solar cell panel system capacity basis*Solar cell panel system capacity basis

Joint investment with Renewable Japan Co., Ltd. and TOKYU LAND CORPORATION
Project finance from The Tohoku Bank, Ltd. and EPC by Mitsubishi Electric System & Service Co., Ltd.
Sharing sunlight between power generation and agriculture
Posts are planted on farmland and panels are installed at certain intervals, under the panels barley isgrown using large agricultural machines Part of the income of the power generation business will be paid as farming support costs over twenty
years to contribute to regional re-creation

http://www.jaic-vc.co.jp- 30 -

5. Business report – Project oriented investment- Renewable energy projects – case study 3

machineryroom
Methanefermentation tankgas holder

waste watertank

Kami Solar Park
（Kami-cho, Miyagi）

Aomori Touhokumachi Solar Power Plant（Touhoku-machi, Kamikita-gun, Aomori）

Started electricity sales in Oct. 2018

Started electricity sales in Nov. 2018

Maximum output：approx. 2.4MW

Maximum output：approx. 30KW

*Solar cell panel system capacity basis

Feed-in tariff : 36/kWh [ex. Tax]

Feed-in tariff : 39/kWh [ex. Tax]

Increased power generation by 20% by installing manysolar power panels at a mountain fold shape facing east
and west instead of the usual south.

A power generation plant driven by biogas, which is
generated by methane fermentation of the discarded
sections (residue) of ‘nagaimo’ yam.

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

5. Business report - Project oriented investment-Investment in a vegetable plant

March 2019: Launch of the first vegetable plant
Construction site

Hyogo prefecture

Site area

Approx. 820 ㎡

Plant type

Completely closed

Crops (plan)

Vegetables forbusiness use such asleaf lettuce, watercress,
Akamizuna, and headlettuceAnnual production (plan)

Approx. 200 tons

Total project amount

Approx. ¥0.7 bn. (Amajority is planned tobe financed withproject finance fromfinancial institutions)

In cooperation with MORIHISA ENGINEERING, a venture firm with experience in theconstruction and operation of vegetable plants.



MORIHISA ENGINEERING is in charge of the operation while JAIC will invest part of theconstruction and operation costs.

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

6. Appendix

AUM of Funds, Investment balance & balance of operational
investment securities

P34

Funds & investment activities

P35

Business results & financial position （Previous accounting standards)

P36

Statement of Income – break down (Previous accounting standard)

P37

Break down of investment income (Previous accounting standard)

P38

Total project amountP39

Estimated cumulative revenue from project invested

P40

List of renewable energy projects

P41

Core competence

P43

Profit structure

P44

Company data

P46

http://www.jaic-vc.co.jp- 33 -

6. Appendix – AUM of Funds, Investment balance & balance of operational
investment securities

Investment by fuds
4.9

AUM of Funds¥16.5 bn.

7.3

3.8

0.4

Investment balance¥14.0 bn.

Principal investment
by JAIC 9.0

1.9

Other
investors'
interests in
funds
3.1 Other than consolidated anonymous partnership
Consolidated anonymous partnership

Balance of
operational investment securities(Previous Accounting Standard)

6.2

2.8 ※

1.9

¥10.2 bn.

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

Other investors' interests in consolidated funds
Others¥11.7 bn.
Balance of
operational investment securities(Fund Consolidated
Accounting Standard)

0.8

JAIC's interests in funds

Cash etc. in Funds
Accumulated profits, Losses & distributions
6.2

1.9

1.3 0.8

Uncalled commitments to Funds
Note:
Of the principal investment by JAIC, the investment portion inanonymous partnership, which is subject to consolidation, isdeemed investment in a subsidiary under the fund consolidated
accounting standards, and investment is offset by capital.
On the other hand, renewable energy power generation facilities
held by anonymous partnerships are booked as property, plantand equipment under the fund consolidated accounting standard.

- 34 -

6. Appendix - Funds & investment activities(JPY million)
New & Increased Funds
AUM of Funds - total

14/3

15/3

16/3

17/3

18/3

19/3

-

-

5,201

500

1,000

2,000

50,88843,89739,33528,753

19,15016,49414,004

9,427

5,867

5,344

AUM of Funds - JAICNew Investnemts

4,189

2,728

4,093

4,315

3,887

3,749

Balance of Investments

25,862

19,722

18,783

16,55813,981

13,951

http://www.jaic-vc.co.jp- 35 -

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

14/3

15/3

16/3

17/3

18/3

19/3

Business Results
Operating Revenues

6,155

4,532

4,043

3,926

5,403

2,475

Operating Gross Profit

2,474

882

1,554

2,176

2,328

1,286

SG&A Expenses

1,621

1,433

1,472

1,339

1,311

1,109

Operating Income

852

(550)

82

836

1,017

177

Ordinary Income

374

(610)

612

726

954

83

Net Income

462

(850)

597

553

874

578

10,428

9,437

8,202

6,213

7,308

5,564

Financial Position
Cash and deposits
Operational investment securities of project related
investment
Operational investment securities after deducting
allowance for possible investment loss (Private equity)
Loans payable, bonds & bonds with subscription rights
to shares

608

1,337

3,722

4,081

3,582

5,514

12,38010,364

8,226

7,356

6,030

5,138

24,01020,193

16,91014,128

11,954

9,784

Total shareholders' equity

2,573

3,373

4,976

5,686

6,545

6,840

Total assets

27,302

24,396

22,68020,305

19,22017,305

http://www.jaic-vc.co.jp- 36 -

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

14/3

15/3

16/3

17/3

18/3

19/3

Change(%)

１． Fund management operation
Fund management fees and others

733

571

441

364

277

241

(13%)

Success Fees

132

63

288

101

86

-

-

865
865

634
634

729
729

466
466

364
364

241
241

(34%)
(34%)

4,656

3,651

2,954

2,275

3,219

1,746

(46%)

357
121

100
93

295
49

1,128
30

1,612
64

406
23

(75%)
(64%)

5,134

3,844

3,300

3,434

4,897

2,176

(56%)

2,133

1,767

1,863

1,423

2,469

554

(78%)

1,480

1,704

569

274

562

579

3%

52

168

47

46

36

49

34%

3,666
1,468

3,640
203

2,481
818

1,744
1,690

3,069
1,827

1,182
993

(61%)
(46%)

154
15
139

53
9
44

13
7
5

25
6
19

142
5
136

57
6
51

(59%)
12%
(62%)

6,155
3,681
2,474

4,532
3,650
882

4,043
2,488
1,554

3,926
1,750
2,176

5,403
3,074
2,328

2,475
1,188
1,286

(54%)
(61%)
(45%)

Operating Revenue
Operating Cost
Operating Gross Profit
２． Investment operation
Proceeds of sales of securities (A)Fund interests income etc.
Income gains

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
Operating Revenue
Operating Cost
Operating Gross Profit
Total
Operating Revenues
Operating Cost
Operating Gross Profit

http://www.jaic-vc.co.jp- 37 -

6. Appendix – Break down of investment income (Previous accounting standard)(JPY million)
Domestic
Domestic
listed stock unlisted stock

Total
FY 2018/3(A) Proceeds of sales of securities(B) Cost of securities sold(A)-(B) Realized capital gains( C) Investment write-offs andProvision for allowance for possible
investment losses(A)-(B)-( C) Invstment income

3,219
2,469
749

179
61
117

1,209
906
302

11
11
-

562

-

493

-

69

-

187

117

(190)

-

(58)

318

1,746
554
1,192

371
37
334

403
163
239

-

Projectoriented
investment
90
881
124
228
(34)
652

579

(21)

203

-

396

-

613

355

35

-

(430)

652

Domestic
Domestic
listed stock unlisted stock

Total
FY 2019/3(A) Proceeds of sales of securities(B) Cost of securities sold(A)-(B) Realized capital gains( C) Investment write-offs andProvision for allowance for possible
investment losses(A)-(B)-( C) Invstment income

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

Projectoriented
investment
36
1,783
24
1,465
11
318

Overseas
Overseas
listed stock unlisted stock

Overseas
Overseas
listed stock unlisted stock- 38 -

6. Appendix – Project oriented investment - total project amount
Expected total amount of renewableenergy projects planned to be longheld and managed by JAIC as of Mar.
2019(*1)
Project finance loan(*1) The breakdown of funds procured is theforecast amount upon completion of the projects.

Total amount of projects¥26.0 bn.
[100％]



Project finance loan
¥21.7 bn.
[83.5％]
Invested by others¥1.3 bn.[5.0％]*2
Total amount of projects(*2) Off-balance
portion not bookedin the BS of theprevious accounting
standards
Invested by
JAIC ¥3.0
bn.[11.5％]¥48.2 bn.
[83.5％]¥57.7 bn.
[100％]

Invested by others¥2.9 bn.[5.0％]
Invested by JAIC
¥6.6 bn.[11.5％]

The expected total amount of renewable energy projects to be long held and managed by JAIC as of Mar. 2019 is¥26.0 billion.
Based on the previous accounting standards, other than ¥3.0 billion “invested by JAIC” (11.5%) of the total amount ofprojects are off-balance*2.
JAIC aims to increase “investment by JAIC” to ¥6.6 billion by end of March 2021.
Assuming that the same percentage of funding will be carried out in projects invested in the future as in existing
projects to be long held, the total amount of projects that correspond to JAIC’s investment of ¥6.6 billion will increaseto ¥57.7 billion.

* 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. Various
factors could cause actual results to differ materially.

http://www.jaic-vc.co.jp- 39 -

6. Appendix – Project oriented investment – Estimated cumulative revenue

Estimation of cumulative revenue from electricity sales fromrenewable energy projects to be long held
and managed by JAIC as of March 2019
Expected cumulative
revenue for 20 years

Amount ofinvestment
by JAIC¥ 3.0
bn.
The forecast
amount uponcompletion of all
projects.

Under certain hypotheses
when assuming that theseprojects will continue to beheld;¥7 billion difference=
Unrealized gains(before discounting)¥ 10 bn.
Expected cumulative
revenue(*) based onelectricity sales fromthe start of electricity
sales until the end of
the FIT period(approx. 20 years)* Revenues from electricity sales minus depreciation, interest expenses, etc.
http://www.jaic-vc.co.jp- 40 -

5. Appendix – List of renewable energy projects as of December 31, 2018
EnergySourceSolar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]Total amount ofproject [¥ bn.]1

Nishiki-cho, Kuma-gun, Kumamoto

3.1

Started electricity sales in Dec. 201540

approx. 1.05

2

Ichinosekishi Fujisawacho solar power plant

2.3

Started electricity sales in Sep. 201636

approx. 0.73

3Nomaike solar power plant

2.4

Started electricity sales in May. 201736

approx. 0.8

4

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

5Mitakabeike solar power plant

1.5

Started electricity sales in Sep. 201732

approx. 0.5

6Iwate Ichinoseki solar park

2.4

Started electricity sales in Jan. 201836

approx. 0.8

7

Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

8

Nakaoudaike solar power plant

2.4

Started electricity sales in Apr. 201836

approx. 0.86

9

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

10

Higashioudaike solar power plant

2.4

Started electricity sales in Jul. 201836

approx. 0.86

11

Ichinosekishi Suzugasawa solar power plant

2.7

Started electricity sales in Oct.. 2018

36

－

12

Kami solar park

2.4

Started electricity sales in Oct. 201836

approx. 0.96

13

Mombetsu-shi Kodo solar power plant

15.7

Under construction or Under planning40

approx. 6.6

14

Hokkaido

2.0

Under construction or Under planning

36

－

15

Mie

21.8

Under construction or Under planning

24

－

16

Fukushima

2.4

Under construction or Under planning

32

－

17

Fukushima

2.7

Under construction or Under planning40

18

Kumamoto

11.8

Under construction or Under planning38

19

Hokkaido

2.3

Under construction or Under planning

40

20

Kanagawa

2.4

Under construction or Under planning

32

21

Fukuoka

2.9

Under construction or Under planning

36

Total 93.8MW [attributable to JAIC 50.4MW]

http://www.jaic-vc.co.jp- 41 -

5. Appendix - List of renewable energy projects as of December 31, 2018
Energy Source

No.

Location

Generation Capacity[MW]

Current status

FIT[tax excluded, ¥]Total amount of project[¥ bn.]

Woody biomass

Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018－－

Bio gas

Tokyo

1.6

Under construction or Under planning

39－

Aomori Touhokumachi solar power plant

0.03

Started electricity sales in Nov. 201839－

At most 25.2

Under construction or Under planning

22－

Wind power

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

Mie- 42 -

5. Appendix – Core competence
Historical background in Asian region

Capability 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.
http://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.
- 43 -

5. Appendix – Profit structure● Private equity investment

There are the following two types of investment
capital:・Contribution from JAIC’s cash reserves
・Capital that is entrusted for investment byfund investors in Japan and abroad throughthe fundJAIC also invests in the fund and acquires
capital gains according to its investment ratio.

● Renewable energy project investment

The power generation operator procures funds
for the construction of power plants by thefollowing two ways and owns the power plants:
・Investment by JAIC and other investors
・Loans from financial institutions
The generated power is purchased by powercompanies at FIT.
JAIC and other investors obtain stable revenue
from electricity sales according to theirinvestment ratios.

http://www.jaic-vc.co.jp- 44 -

5. Appendix – Profit structure● Fund management
In fund management, there are thefollowing two types of fees:
・Management fee received ascompensation for recurring management
and operation
・Success fees received according to thefund’s performance

http://www.jaic-vc.co.jp- 45 -

5. Appendix - Company data (as of March 31, 2019)
Company name

Japan Asia Investment Co., Ltd.

Head office

3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo 101-8570, Japan

Established

July 10, 1981

Paid-in capital

5,426 million yen

Listed market

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

Abbreviation; JAIC

Number of employees 40 (Consolidated) /22 (Non-consolidated)
Main businessPrivate equity investment / Project oriented investment

Directors

Chairman:Yoshiaki Kawamata [Outside/Independent]; Chairman of the Board

President & CEO :Tetsuro Shimomura
Managing Director :Kazunori Omori; Chairman of Audit & Supervisory Committee

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

Director:Hitoshi Yasukawa [Outside/Independent]; Member of Audit & Supervisory Committee

Director:Tadashi Nunami [Outside/Independent]; Member of Audit & Supervisory Committee- 46 -

JAIC
Japan Asia Investment Co., Ltd.
Seiko-Takebashi-Kyodo Bldg., 3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo 101-8570
TEL +81-3-3259-8518 Fax +81-3-3259-8511

http://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.
http://www.jaic-vc.co.jp- 47 -