Financial Results Overview
for the Year Ended
March 31, 2020
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: May 15, 2020

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 FY2020

P4

3 Progression status of the medium-term business plan

P9

4 Business policies and result forecasts for FY2021

P15

5 Business report

P23

6 Appendix

P33

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 FY2020• Operating revenue of ¥2.7 billion (up 11.5% year on year) and final profit of ¥0.3 billion (down,
47.7% year on year).
• Decline in profits due to a reactionary drop in extraordinary income could not be offset by a decrease
in investment write-offs and an increase in profit from project oriented investment.
 Progression status of the medium-term business plan
• The achievement rate of final profit was 60.5% of the initial forecast; gains on sale of shares weresignificantly lower than initially anticipated.
• There has been a structure in which a decline in gains on sale of shares is covered by the sales ofproject oriented investment assets. While we have been promoting the execution of new investment
projects, the balance and unrealized gain have not increased rapidly.
• Strategic investment has progressed steadily, achieving the target balance of ¥1.0 billion in thesecond year of the plan.
 Business policies and result forecasts for FY2021• There has been a limited impact of the novel coronavirus pandemic at this stage.
• Based on the assumption of limited future impact, the targets for operating revenue and final profit
are set as ¥3.25 billion yen and ¥0.18 billion, respectively.
• As for project oriented investment, we will pursue optimal project mix by combining projects subject
to short-term sale such as logistics facilities and projects subject to long-term holding including
facilities for persons with disabilities and biogas power generation facilities.
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2. Results for FY2020

Outline of results

P5

Break down of operating revenue & operating costP8

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2. Results for FY2020 – Outline of results – I/S(million yen)

FY Mar 2019
AmountFY Mar 2020
AmountChangeOperating revenue

2,475

2,760

11.5%

Operating cost

1,188

1,401

17.9%

Operating gross profit

1,286

1,359

5.7%

SG&A expenses

1,109

1,094

(1.3%)

Operating income

177

265

49.6%

Ordinary income

83

140

67.9%

578

302 (47.7%)

Profit attributable to ownersof parent Factors for increase in revenues: Increase in the number of sales of mega solar projects (4 projects=> 7 projects)
 Factors for decrease in profit: Decrease of a total of ¥636 million in profit contributions (operating
revenues and extraordinary income) from private equity funds operated by other companies
http://www.jaic-vc.co.jp-5-2. Results for FY2020 – Outline of results – B/S
As of Mar 2019

Total assets(a) Cash and deposits(b) Project oriented investment securities &loans
Strategic investment securities in partnercompanies
Private equity investment securities after

FY Mar 2020

AmountAmount(million yen)(million yen)

17,305
5,564
5,514
373

15,800Changeflactuation factors(billion yen)

(8.7%)

3,920 (29.5%) repayments of loan (1.6)
5,437

investmet execution＋2.2,(1.4%) distribution・redemption etc. (1.9),
sales (0.4)

1,005 169.6% investmet execution
investmet execution∔0.3,

4,765

4,282 (10.1%)（c） Loans payable

9,784

8,166 (16.5%) repayments of loan (1.6)

Total shareholders' equity

6,840

7,223

(a) + (b) - （c）

1,294

1,191

deducting allowance for possible investment loss
except strategic investment in partner companies

sales etc. (0.7)

5.6% profit +0.3
(7.9%)

 Cash and deposits : Declined due to the repayment of borrowings
 Strategic investment: The balance increased as a result of 5 investments
 Financial balance : The balance of project oriented investment decreased owning to distribution,
redemption and sales(Note: Financial balance = Cash & deposits + project oriented investment – loans payable)
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2. Results for FY 2020 – Outline of results – C/F(JPY million)

FY Mar 2019

FY Mar 2020

Operating CF

299

124

Investing CF

1,224

147

Financing CF(2,173)(1,617)(675)(1,358)

4,082

2,723

Change in Net CF
Cash & cash equivalents at endof period Operating CF: Net cash provided was 124 million yen
Payment for purchase of investment funds increased year on year due to theimplementation of investment
 Investing CF: Net cash provided was 147 million yen
Proceeds from redemption of investment fund decreased year on year Financing CF: Net cash used was 1,617 million yen
The extent of negative cash flow improved year on year due to the
reduction of the repayment amount to correct the financing policy of placing priority on
repayment
While new investment funds and ordinary payments have been covered by the return on investment, cash
on-hand has been used for the repayment of borrowings.
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2. Results for FY 2020 –Break down of operating revenue & operating cost
Total
（JPY million）

FY Mar 2019

Private equity investment
FY Mar 2020

FY Mar 2019

Project oriented investment

FY Mar 2020

FY Mar 2019

FY Mar 2020

2,475

2,760

1,474

1,104

1,000

1,656

Fund management fees etc.

241

199

239

195

1

3

Proceeds of sales of securities

1,746

2,349

865

806

881

1,542

Fund interests income etc.

429

172

337

87

91

84

Other operating reveue

57

40

31

14

26

25

1,188

1,401

960

760

228

640

554

965

325

476

228

489

579

245

579

245

-

-

Fund interests losses etc.

49

184

49

33

-

150

Other operating costs

6

5

6

5

-

-

1,286

1,359

514

343

772

1,015

Operating revenue

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

Operating gross profitPrivate equity investment; Both revenues and profit decreased.
•
Of operating revenue, fund interests income etc. decreased due to a drop in profit from investment funds
managed by other companies.
•
Of operating cost, cost of securities sold increased reflecting a decline in sales of listed shares with higher
investment returns and the recording of a loss on sales by prioritizing liquidation of large-scale unlisted shares.
Meanwhile, investment write-offs and provision for allowance decreased.

Project oriented investment; Both revenues and profit increased.
•
Of operating revenues, proceeds of sales increased due to an increase in the number of sales of mega solar
projects (4 projects => 7 projects)•
Of operating cost, fund interests losses etc. increased due to advance expenditure for the vegetable plant.

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3. Progression status of the medium-term business plan

Outline of medium-term business plan

P10

Priority measures for FY2020

P11

Target figures

P13

Key performance indicator

P14

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3. Progression status of the medium-term business plan – Outline of the plan

Challenges behind the plan
1.
2.
3.

Revenue structure has been unstable:
Most of revenues depends on capital gains from venture investment.
Financial soundness has not been ensured:
Private equity investment assets, whose recoverability is lower, are partially financed
through borrowings.
Sufficient investment funds cannot be secured:
Repayments exceeding earnings capacity have been made by prioritizing repayments.

Medium-term business plan (3-year plan from FY2019)

Sell majority of existing private equity investment assets within three years in order toensure profit and funds.

Use proceeds of sales for project oriented investment and “strategic investment” combining“investment in corporations” and “investment in projects (businesses).”

While promoting asset reshuffles to increase assets with higher liquidity, accumulate
unrealized gains of project oriented assets (stable revenues for the future).



Select renewable energy, smart agriculture (vegetable plants, etc.) and heathcare (nursing
and medical fields) as three business themes.

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3. Progression status of the medium-term business plan
– Priority measures for FY2020 – Private equity
Item

Plan

Sale ofexisting
portfolio

In addition to achieving sale proceeds from
IPOs, liquidize unlisted shares and nonoperating assets.

Establishme
nt of funds

Establish two funds those aim to assist
overseas expansion of Japanese companies
and foreign direct investment into Japan.

•
Network,
M&A

Investmentsin partnercompanies•

Strengthen external networks (in Japan andAsia) and establish a global support
structure.
Start initiatives in FA business centeredaround cross-border M&As.

Create a new bankable (i.e., debt financing
from financial institutions is possible) businessand carry out strategic investments in partnercompanies in addition to investing in projects ofthe business.

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

Progress• Shares of Japanese companies that carried out IPOs weresold and a large Chinese investee was liquidated.
• As gains on sale of shares expected for the fourth quarter will
likely decline significantly, the initial results forecast has beenrevised downward.
• Solicitation activities were carried out for a fund that supports
overseas business expansion of leading SMEs in collaboration
with regional financial institutions• The establishment of a fund to support foreign direct
investment into Japan hasn’t been implemented due todifference in the way of thinking between we and investors.
• Cooperation agreements were signed with China's Xi'an HiTech Industries Development Zone, Yantai Investment
Development Board and Wuhan Municipal People’s
Government respectively.
• Cooperation agreements were signed with local venture capitaland local security company in Bangkok.
• M&A deals from Asian business partners being introduced tolisted Japanese companies using our domestic network andunder negotiation.
• Commenced a construction project for group homes for
persons with disabilities; 3 group homes are currently being
constructed.
• Commenced a construction project for distribution centers(logistics facilities) in Japan; executed investment in 2 facilities.
• Executed investment in 5 companies including partners of theabove.
- 11 -

3. Progression status of the medium-term business plan
– Priority measures for FY2020 – Project oriented investment
Item

Plan

RenewableenergyPlace top priority on mega solar projects but
continue aggressive investment in new
biogas and biomass projects as well sinceinvestment opportunities in high profitability
projects have time constraints.

Smartagriculture

Put the first vegetable factory on track andinvest in subsequent projects.

Progress•

Investment executed in operator of intermediate processing
facility for waste materials to be used as fuel for biogas power
plants.

•Investment executed in 3 new mega solar projects and 1
existing mega solar project with a ¥30-level FIT price.

• No.1 plant has been operating steadily by securing a leading
food services chain as a customer. However, since the target ofachieving single-month profitability by the end of FY2020 failed,
we aim to achieve single-month profitability by the end of
FY2021.
• Investment in No. 2 plant is planned after gaining prospects forachieving profitability for No. 1 plant.

Healthcare

Focus on profitability instead of quantity andinvest selectively in nursing care facility
development projects.

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

Executed investment in a project for an aged care facility locatedin Shinonome, Koto-ku, Tokyo.

- 12 -

3. Progression status of the medium-term business plan – Target figures
Result forcast(million yen)

FY2020(Disclosed on

FY Mar 2020 (Actual)

May 15, 2019)
AmountAmountProgression
ratio

Operating revenue

3,500

2,760

78.9%

Operating cost

1,600

1,401

87.6%

Operating gross profit

1,900

1,359

71.6%

SG&A expenses

1,100

1,094

99.5%

Operating income

800

265

33.2%

Ordinary income

650

140

21.7%

500

302

60.5%

Profit attributable toowners of parent

Private equity• Proceeds of sales of securities significantly declined compared to the plan due mainly to a drop in prices ofstocks with delayed or successful IPOs.
• Only approximately 20% of the plan has been achieved including extraordinary income as a result of proceedsof sales of investment securities.
Project oriented investment• A loss was forecasted in the plan due to the expenses to be incurred prior to the launch of the vegetable plant.
However, as a result the significantly decline in private equity investment, we sold existing mega solar projects.
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3. Progression status of the medium-term business plan – Key performance indicator
Strategy

Expand stablerevenue fromproject oriented
investment
assetsReplacement ofprivate equity
investment
assetsMeasures

KPI FY 2019
(Actual)KPI FY 2020
(Actual)KPI FY 2021
(Target)Balance of project oriented investment
assets (*1)

5.5 billion yen

5.4 billion yen

9.0 billion yen

Expected cumulative profits from project
oriented investment to be long held (*2)

7.0 billion yen

5.8 billion yen

20.0 billion yen

Balance between the sum of cash anddeposits and project oriented investment
assets and borrowings+1.3 billion yen+1.1 billion yen+5.6 billion yen

Promotion of early liquidizing andmonetization of assets except strategic
investments etc.

Balance ofinvestment
4.7 billion yen(net of provisions)

Balance ofinvestment
4.2 billion yen(net of provisions)

Balance ofinvestment
1.0 billion yen(net of provisions)・Establishment of funds for new
investments
・Implementation of strategic investments

Balance ofinvestment
0.37 billion yen

Balance ofinvestment
1.0 billion yen

Balance ofinvestment
1.0 billion yen

 The decline in gains on sales of shares was covered by selling project oriented investment assets. While we havebeen promoting the execution of new investment in project oriented investment assets, the balance and unrealized
gain have not increased.
 There is a delay in liquidizing and monetization of private equity investment assets other than strategic investments.
 Implementation of strategic investments has been progressing steadily, and the targets have been achieved in thesecond year of the plan.
(*1) Including outstanding loans(*)2 Estimation of cumulative profits from projects managed by JAIC Group under certain hypotheses
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4. Business policies and result forecasts for FY2021

Business policies

P16

Impact of COVID-19

P19

Difference from the medium-term business plan

P20

Breakdown of result forecast

P21

Cautionary statements with respect to forward-looking statements

P22

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4. Business policies and result forecasts for FY2021 - Business policies (1)Focus on early liquidizing and monetization of private equity investment
assets
While actual results have been significantly behind the medium-term businessplan until the second year of the plan, they remain as significant issues.
Relentless efforts must be made in order to increase the progress rate asmuch as possible.

Sales of projects as a back-up plan
It is difficult to control the fluctuations in the sales of securities because thesales is highly influenced by the stock market and the economic environment.
If there is a decline in proceeds of sales of securities in the future, we will
partially cover the shortage by selling projects.

Promote project oriented investment subject to short-term sale
In order to increase the balance of assets in place of the mega solar projects
that have already been sold as early as possible, we will shift of focus of our
future investment execution from project oriented investment aimed atacquiring stable earnings from long-term holding to project oriented
investment subject to short-term (2-3 years) sale, achieving optimal
investment mix for long-term and short-term earnings.

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4. Business policies and result forecasts for FY2021 - Business policies (2)Business
policyDevelop a sustainable revenues structure by separating profit opportunities into long-term stableearnings and short-term earnings and using optimal combinations.
Expect to make a stable earnings(cash flows and profit) contribution
through long-term asset holding

Project oriented
investment
Smartagriculture(vegetablefactory)

Private equity &Fee business

Health care
(Grouphome forpersonswith
disabilities)

RenewableenergyConsignment offundadministration

Expect to make a stable earnings
contribution
http://www.jaic-vc.co.jp

Expect to make an earnings (cashflows and profit) contribution with asignificant impact through shortterm asset turnoverHealth are(Nursing
carefacilities for
elderlypersons)

Support foroverseasbusiness
expansion

Distribution
center(Logisticfacility)

Support forbusiness
expansion

Financialinvestment

Ｍ＆Ａ
business

Strategic
investment
in partnercompanies

Expect to make a variable but
significant earnings contribution- 17 -

4. Business policies and result forecasts for FY2021 - Business policies (3)RenewableenergyExecute investment in mega solar projects by carefully examining
profitability more than ever

Smart agriculture

Aim to achieve profitability for No. 1 plant by March 31, 2021
Investment in No. 2 plant is planned after gaining prospects for achieving
profitability of No.1 plant

Distribution center

Make actively investment in medium- to large-scale logistics facilities
Aim for high returns by making investment in projects at early stages

Health care

Support partner companies by continuing investment in facilities for persons
with disabilities
Carefully invest in projects for aged care facilities

Private equity

Establish a fund to support overseas business expansion and link it to afee business
Take actions aimed at growth support and early liquidizing and monetizationof existing investee companies

Ｍ＆Ａ

Engage in intermediary services as a financial advisor based on the M&A
needs obtained in the process of cultivating promising companies for ourinvestment

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4. Business policies and result forecasts for FY2021- Impact of COVID-19
Item

Anticipated risks

Sale of listed shares

Decline in sale prices and postponement of IPOs

Sale of unlisted shares

Difficulty in fund raising by buyers and deteriorating
performance of companies targeted for sale

Sale of projects

Difficulty in fund raising by buyers

Evaluation of investee companies

Unrealized losses and provisions arising fromdeterioration in the financial condition of investee
companies

Projects under construction

Suspension of construction

Projects that started electricity sales

Increased output suppression due to reduced power
consumption

Smart agriculture projects

Decline in sales to the restaurant industry

JAIC’s operating activities

Stagnant new investment and lower return on investment

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4. Business policies and result forecasts for FY2021- Difference from the medium-term business plan
Key goal indicator

FY2021(Forecast)

FY2021(Target)fluctuation

Final profit

0.18 billion yen

0.7 billion yen(0.52) billion yen

ROE

2.5%

9%

(6.5) %

Strategy

Expand stable revenue
from project oriented
investment assets

Replacement of private
equity investment assets

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

KPI FY 2020
(Forecast)

KPI FY 2021
(Target)Balance of project oriented investment
assets

6.1 billion yen

9.0 billion yen

Balance between the sum of cash anddeposits and project oriented investment
assets and borrowings+2.6 billion yen+5.6 billion yen

Promotion of early liquidizing andmonetization of assets except strategic
investments etc.

Balance of investment
2.5 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
1.0 billion yen

Balance of investment
1.0 billion yen

Measures- 20 -

4. Business policies and result forecasts for FY2021- Breakdown of result forecast(million yen)

Result forcast

Result forcast

FY2021

FY2021(2Q)

Operating revenue

3,250

850

Operating cost

1,800

380

Operating gross profit

1,450

470

SG&A expenses

1,100

590

Operating income

350

(120)

Ordinary income

200
180
2.5%

(190)
(210)
-

Profit attributable to owners of parent

ROE

Breakdown:
Proceeds of sales of securities (IPO)
1,350
Proceeds of sales of securities (Trade sales) 1,650
Fund management fees
150
Profits from PE funds managed by third parties 75
Others25

Breakdown:
Cost of securities sold (IPO)370
Cost of securities sold (Trade sales)
880
Investment write-offs & provisions
350
Costs from project oriented investment
100
Loss from PE funds managed by third parties 100Operating income: ¥3.25 billion; Profit: ¥0.18 billionA loss is expected for the first six-month period and the first nine-month period.

Proceeds of sale of securities are anticipated for 2H due to an IPO in Japan and a trade sale in
China; sale of projects is not planned at this stage.

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4. Business policies and result forecasts for FY2021- 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.
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5. Business report

Private equity investment

P24

Project oriented investment

P27

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5. Business report - Private equity investment – Investment execution

Investment execution : 12 companies, ¥1.2 billion
5 strategic investments in partner companies
Smart Solar Corporation
Business:
Mega solar power generation related business,
Smart city related business for public facilities andindustrial facilities
Residential solar power generation related business

Morihisa Engineering Co., LTD.
Business:
Development, planning, construction and operation ofvegetable factories
Production of high-end vegetables under the brand name
“Morvel”.

MDｰFarm

KIC Holdings Inc.

Business:
Development and sales of strawberry
cultivation system
Agriculture business support
consulting services, etc.

Business:
Development of distribution centers(logistics facilities), finance,
formulation of management plan,
asset management

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

Social Inclu Co., LTD.
Business:
Operating “Social Inclue Home”,
group homes for persons withdisabilities- 24 -

5. Business report -Private equity investment – JAIC Backed IPOs

StemRim Inc.
Stock market: TSE Mothers (4599)
IPO date: 9 August 2019

Fangdd Network Group Ltd.
Stock market: NASDAQ Global (DUO)
IPO date: 1 November 2019http://www.jaic-vc.co.jp

PBsystems, Inc.
Stock market: FSE Q-Board (4447)
IPO date: 12 September 2019

Ligua, Inc.
Stock market: TSE Mothers (7090)
IPO date: 13 March 2020- 25 -

5. Business report -Private equity investment - Asia business network Asia business network,
JAIC's strength, further
strengthened.
 To be used for the launchof M&A business andsupport of investee
companies.
 Cooperation agreement
signed with China's Xi'an
Hi-Tech Industries
Development Zone,
Yantai Investment
Development Board andWuhan Municipal
People’s Government,
respectively.
 Cooperative agreements
signed with local venture
capital and local security
company in Thailand,
respectively.

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5. Business report - Project oriented investment – Investment execution

Investment execution : 10 projects, ¥ 2.15 billion
Renewable energy- 4 mega solar projects with a ¥30-level FIT price- Investment in an operator of an intermediate treatment facility for waste that can beused as law materials for biogas power generation

Smart agriculture

Additional investment of the vegetable plant’s operation funds

Health care

A large-scale aged care facility located in Shinonome, Koto-ku, Tokyo

Distribution center

Investments in 2 logistics facility construction projects in Japan

Others

A medium-term project investment in income property (commercial building)In addition to those listed above, a loan was provided to a project on group home for disabled persons.
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5. Business report - Project oriented investment – New fund

JAIC-Solar Fund, L.P.,Ⅱ
Fund managementcompany
Fund investors andinvestment ratio

JAIC Capital Partners Co., Ltd.(JAIC’s 100％ subsidiary)
General Partner
Limited Partners

JAIC Capital Partners Co., Ltd.(investment ratio: 0.07％)
JAIC(investment ratio:0.07％), other 2 companies(investment ratio:99.85％)

Fund total

1,359 million yen

Investment target

Mega solar projects in operation

Date of establishment
Project invested

March 4, 2020
JAIC Group transferred six mega solar projects (14.2 MW in total) to JAIC-Solar Fund, L.P., II following theexecution of investment of the Fund.

Higashioudaike solar power plant

Kumanishiki Ajioka Shizen Energy
solar power plant

Nakaoudaike solar power plant
Iwate Ichinoseki solar park
http://www.jaic-vc.co.jp

Nomaike solar power plant

Mitakabeike solar power plant- 28 -

5. Business report - Project oriented investment- Renewable energy projects as of March 31, 2020

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

14 projects
11 projects
25 projects

47.9 MW
49.6 MW
97.5 MW
45.2MW

Transfers to buyers other than the funds operated by the JAIC Group

23 projects

122.0 MW

*Underlined projects that started electricity sales:
Investment by JAIC Solar Fund L.P., Ⅱ

Fukuoka, Solar
3 projects
2.9MW

Kumamoto, Solar
1 project 3.1MW
1project 11.8MW

Hokkaido, Solar,
3 projects 22.1MW
1 project 2.3MW
Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
1 project 2.4MW
2 projects 5.3MW
Miyagi, Solar,
1 project 2.4MW
Fukushima, Solar,
2 projects 3.9MW
1 project 2.4MW

Tokyo, Bio gas,
1project 1.6MW
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

Tochigi, Solar,
3 projects 6.0MW
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.
http://www.jaic-vc.co.jp- 29 -

5. Business report - Project oriented investment- Health care project (Group home for persons with disabilities)

Commenced 3 projects with Social Inclu, JAIC’s partner company

Group home in Hamamatsu City, Shizuoka••

Projects commenced in Hamamatsu City (Shizuoka Prefecture), Utsunomiya City (Tochigi Prefecture)and Hiroshima City (Hiroshima Prefecture).
By investing in Social Inclu Co., LTD., we support its growth.

(Note) Group home;
In group homes, about 10 to 20 people with physical, intellectual, and mental disabilities live together with the support of thecaretakers stationed 24 hours a day. Since the facility is smaller than the existing facilities for persons with disability, it is possible toprovide support that meets the needs of each resident. The benefits of moving into group homes include prevention of isolation,
reduction of anxiety about life, and stabilization of physical and mental conditions through communal living.
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5. Business report - Project oriented investment- Distribution center project (logistic facility)

Developing 2 facilities with KIC Holdings, JAIC’s partner company
KIC Koshigaya Distribution Center

Rendering

KIC Atsugi Distribution Center

Rendering

Location

Koshigaya-shi, Saitama

Location

Atugi-shi, Kanagawa

Accessabout 6㎞ from TOHOKU
Expressway Urawa IC, about 1㎞ from TOBU SKYTREE Line
Oobukuro station

Accessabout 1.46km fro KEN-O
Expressway KEN-O Atsugi IC,
about 1.8㎞ from JR Sagami
Line Ebina station

Total floor
space

11,250m²、4 floors above
groundTotal floor
space

10,890㎡ (scheduled)、2
floors above ground

Completion

Sep. 2021 (scheduled)Completion

Feb. 2022 (scheduled)

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

6. Appendix

List of project oriented investments

P33

Break down of private equity investment balance

P35

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

P36

Funds & investment activities

P37

Business results & financial position

P38

Break down of operating revenue & operating cost

P39

Business field

P40

Core competence

P41

Profit structure

P42

Company data

P44

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

. Appendix – List of project oriented investments
Type ofproject
Solar

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

Nomaike solar power plant(*)

2.4

Started electricity sales in May. 201736

approx. 0.8

3

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

4Mitakabeike solar power plant(*)

1.5

Started electricity sales in Sep. 201732

approx. 0.5

5Iwate Ichinoseki solar park(*)

2.4

Started electricity sales in Jan. 201836

approx. 0.8

6

Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

7

Nakaoudaike solar power plant(*)

2.4

Started electricity sales in Apr. 201836

approx. 0.86

8

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

9

Higashioudaike solar power plant(*)

2.4

Started electricity sales in Jul. 201836

approx. 0.86

10

Ichinosekishi Suzugasawa solar power plant

2.7

Started electricity sales in Oct.. 2018

36

－

11

Kami solar park

2.4

Started electricity sales in Oct. 201836

approx. 0.96

12

Mombetsu-shi Kodo solar power plant

15.7

Started electricity sales in Feb. 202040

approx. 6.6

13

Yokotsunooka solar power plant

2.0

Started electricity sales in Mar. 2020

36

－

14

Mie

21.8

Under construction or Under planning

24

－

15

Fukushima

2.4

Under construction or Under planning

32

－

16

Hirono solar park

2.7

Started electricity sales in Feb. 2020

40

－

17

Kumamoto

11.8

Under construction or Under planning

38

－

18

Hokkaido

2.3

Under construction or Under planning

40

－

19

Kanagawa

2.4

Under construction or Under planning

32－

Fukuoka (3 projects)

2.9

Under construction or Under planning

36

－

23

Tochigi

2.0

Under construction or Under planning

36

－

24

Tochigi

2.0

Under construction or Under planning

32

－

25

Tochigi

2.0

Under construction or Under planning

32

－

20-22

Total 97.5MW [attributable to JAIC 45.2MW]

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

6. Appendix - List of project oriented investments
Type of project

No.

Woody biomass
Bio gas1

2

Location

Generation Capacity[MW]

Current status

FIT[tax excluded, ¥]Total amount of project [¥bn.]Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018

－

－

Tokyo

1.6

Under construction or Under planning

39－

operator of adjoining waste processing
plants－－0.03

Started electricity sales in Nov. 201839－

At most 25.2

Under construction or Under planning

22－

Aomori Touhokumachi solar power plant

Wind power

Mie

Vegetable plant

Tambasasayama-shi, Hyogo－

Started operation in Mar. 2019－

Approx. 0.7

1

Hamamatsu-shi, Shizuoka－

Under construction

－

－

2

Utsunomiya-shi, Tochigi－

Under construction

－

－

3

Hiroshima-shi, Hiroshima－

Under construction

－

－

Aichi

－

Opened*investment in building which has alreadystarted operation

－

－

1

Koshigaya-shi, Saitama－

Under planning

－

－

2

Atsugi-shi, Kanagawa－

Under planning－－Group home

Commercial
building
Logistics
warehouse

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

6. Appendix - Break down of private equity investment balance

Investment balance : 98 companies, ¥8.4 bn.
【Breakdown by area】【Breakdown by industry】
Others;
12co.

China,HK,
Taiwan&Service; 1.6bn.
Japan;
15co.
Total
52co.
3.8bn.
1.1bn. 98 companies

Total
98 companies
4.6bn. ¥8.4bn.

others ;
46co.

QOL;
24co.
3.1bn.

Precisionmachine;
7co.

¥8.4 bn.
0.7bn.
1.9bn. IT;
40co.

Average investment amount per company (unit: ¥ million):
Japan 73, China,HK&Taiwan etc. 99 / QOL 130, IT 46
http://www.jaic-vc.co.jp- 35 -

6. Appendix – AUM of Funds, Investment balance & balance of operational
investment securities
Investment by fuds
5.8

AUM of funds¥17.3 bn.

7.7

3.1

0.8

Investment balance¥15.1 bn.

Principal investment
by JAIC 9.3

1.6

Other
investors'
interests in
funds
4.2
Other than consolidated projects
Consolidated projects

Balance of
operational investment securities(previous accounting standard)

6.3

3.1 ※

1.6 0.8

Others¥11.7 bn.
Balance of
operational investment securities(fund consolidated
accounting standard)¥9.8 bn.

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

JAIC's interests in funds

Cash etc. in Funds
Accumulated profits, losses & distributions
6.3

1.6 1.2 0.9

Uncalled commitments to Funds
Note:
Of the principal investment by JAIC, the investment portion in aconsolidated project is deemed investment in a subsidiary under
the fund consolidated accounting standards, and the investment isoffset.
On the other hand, renewable energy power generation andvegetable plant facilities held by consolidated projects are booked
as property, plant and equipment under the fund consolidated
accounting standard.

- 36 -

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

15/3

16/3

17/3

18/3

19/3

20/3

-

5,201

500

1,000

2,000

1,359

43,89739,33528,753

19,15016,494

17,39014,004

9,427

5,867

5,344

5,163

AUM of funds - JAIC
New investnemts (private equity)

1,470

1,304

1,131

1,205

136

1,224

Balance of investments (private Equity)

18,385

15,061

11,981

10,398

8,437

8,405

New investnemts (project oriented investment)

1,257

2,788

3,184

2,681

3,612

2,150

Balance of investments (project oriented investment)

1,337

3,722

4,576

3,582

5,514

6,696

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

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

15/3

16/3

17/3

18/3

19/3

20/3

Business results
Operating revenues

4,532

4,043

3,926

5,403

2,475

2,760

Operating gross profit

882

1,554

2,176

2,328

1,286

1,359

SG&A expenses

1,433

1,472

1,339

1,311

1,109

1,094

Operating income

(550)

82

836

1,017

177

265

Ordinary income

(610)

612

726

954

83

140

Net income

(850)

597

553

874

578

302

9,437

8,202

6,213

7,308

5,564

3,920

1,337

3,722

4,081

3,582

5,514

5,437

-

100

100

373

373

1,005

10,364

8,126

7,256

5,657

4,765

4,282

20,193

16,91014,128

11,954

9,784

8,166

Total shareholders' equity

3,373

4,976

5,686

6,545

6,840

7,223

Total assets

24,396

22,68020,305

19,22017,30515,800Financial 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 after
deducting allowance for possible investment loss
(Private equity except strategic investment in
partner companies)
Loans payable, bonds & bonds with subscription
rights to shares

http://www.jaic-vc.co.jp- 38 -

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

15/3

16/3

17/3

18/3

19/3

20/3

Change(%)

１． Fund management operation
Fund management fees and others

571

441

364

277

241

199

(17.6%)

Success Fees

63

288

101

86

-

-

-

Operating revenue

634

729

466

364

241

199

(17.6%)

-

-

-

-

-

-

-

634

729

466

364

241

199

(17.6%)

3,651

2,954

2,275

3,219

1,746

2,349

34.5%

193

345

1,159

1,677

429

172

(60.0%)

3,844

3,300

3,434

4,897

2,176

2,521

15.9%

1,767

1,863

1,423

2,469

554

965

74.3%

1,704

569

274

562

579

245

(57.6%)

168

47

46

36

49

184

274.3%

3,640

2,481

1,744

3,069

1,182

1,395

18.0%

203

818

1,690

1,827

993

1,125

13.3%

Operating revenue

53

13

25

142

57

40

(30.2%)

Operating cost

9

7

6

5

6

5

(8.0%)

Operating gross profit

44

5

19

136

51

34

(32.9%)

Operating revenues

4,532

4,043

3,926

5,403

2,475

2,760

11.5%

Operating cost

3,650

2,488

1,750

3,074

1,188

1,401

17.9%

882

1,554

2,176

2,328

1,286

1,359

5.7%

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

Operating gross profit

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

. Appendix – Business field

Private equity investment

Strategic investment

Project 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.

http://www.jaic-vc.co.jp- 40 -

. 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.
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.
- 41 -

. 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- 42 -

. 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- 43 -

5. Appendix - Company data (as of March 31, 2020)
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)

Employees

38 (Consolidated) /20 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

Chairman of the Board :Yoshiaki Kawamata [Outside/Independent]
President & CEO:Tetsuro Shimomura
In charge of New Energy 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]

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

Abbreviation; JAIC

- 44 -

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- 45 -