Japan Overseas Infrastructure Investment Corporation
for Transport & Urban Development

Financial Statements

For the 7th fiscal year
From April 1, 2020 to March 31, 2021

Crowe Toyo & Co.
Sumitomo Fudosan Kanda Bldg.,6F
Kandamitoshirocho7,
Chiyoda-ku, Tokyo101-0053
Japan
Main +81 (3)3295 1040
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+81 (3)3295 1993
www.crowe.com/jp/en-us

Independent Auditors’ Report(Translation)
May 24 2021
To the Board of Directors ofJapan Overseas Infrastructure Investment Corporation for Transport & Urban Development
Crowe Toyo & Co.
Tokyo OfficeHiroaki Izawa
Designated Partner
Engagement Partner
Certified Public Accountant
Takayuki Kawakubo
Designated Partner
Engagement Partner
Certified Public Accountant
OpinionPursuant to Article 436 (2) (i) of the Companies Act, we have audited the accompanying financial
statements, which comprise the balance sheet as of March 31, 2021, and the statement of income, thestatement of changes in net assets and the related notes, and the supplementary schedules (hereinafter
the “financial statements, etc.”) of Japan Overseas Infrastructure Investment Corporation for Transport &Urban Development (hereinafter the “Company”) for the 7th fiscal year from April 1, 2020 to March 31,
2021.
In our opinion, the financial statements, etc. referred to above present fairly, in all material respects, thefinancial position and the results of operations of the Company for the period, for which the financial
statements, etc. were prepared, in accordance with accounting principles generally accepted in Japan.
Rationale for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibility with respect to auditing standards is described in “Auditor’s Responsibility in Auditing the
Financial Statements, etc.” We are independent of the Company in accordance with the ethicalrequirements that are relevant to our audit of the financial statements, etc. in Japan, and we havefulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Management and the Company Auditor’s Responsibility for the Financial Statements, etc.
Management is responsible for the preparation and fair presentation of the financial statements, etc. inaccordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of the financial statements, etc. that are
free from material misstatements, whether due to fraud or error.
In preparing the financial statements, etc., management is responsible for assessing whether it isappropriate to prepare the financial statements, etc. with the assumption of a going concern, and inaccordance with accounting principles generally accepted in Japan, for disclosing, as necessary, mattersrelated to going concern.
The Company Auditor is responsible for overseeing the Directors’ performance of duties within themaintenance and operation of the financial reporting process.
Auditor’s Responsibility in Auditing the Financial Statement, etc.
Our responsibilities are to obtain reasonable assurance about whether the financial statements, etc. as awhole are free from material misstatement, whether due to fraud or error, and to express our opinion on
the financial statements, etc. in an auditor’s report based on our audit from an independent point of view.

Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the decisions of users of these financial
statements, etc.
In accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit process to perform the following:
Identify and assess the risks of material misstatement, whether due to fraud or error, and design andperform audit procedures responsive to those risks. Selecting audit procedures to be applied is at thediscretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
In making those risk assessments, we consider internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, while the audit objective of the financial
statements, etc. is not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control.
Evaluate the appropriateness of accounting policies used by management and their method of
application, as well as the reasonableness of accounting estimates made by management and related
notes thereto.
Conclude on the appropriateness of preparing the financial statements, etc. with the assumption of agoing concern by management, and based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the notes to the financial statements, etc. or, if the notes tothe financial statements, etc. on material uncertainty are inadequate, to express an opinion withexceptive items on the financial statements, etc. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause theentity to cease to continue as a going concern.
Evaluate whether the presentation and disclosure of the financial statements, etc. are in accordancewith accounting principles generally accepted in Japan, the overall presentation, structure and content
of the financial statements, etc. including the disclosures, and whether the financial statements, etc.
represent the underlying transactions and events in a manner that achieves fair presentation.
We report to the Company Auditor regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit process, and other matters required by auditing standards.
Conflict of Interest
Our firm or the engagement partners have no interest in the Company which should be disclosed pursuant
to the provisions of the Certified Public Accountants Act of Japan.
The above represents a translation, for convenience only, of the original report issued in the Japanese
language.

Balance Sheet(As of March 31, 2021)（Thousands of yen）
AssetsLiabilities and net assets( Assets )Current assets:( Liabilities )116,832,538

Current liabilities:

620,688

Cash and deposits

44,309,419

Lease obligations

3,270

Operational investment securities

71,888,855

Accounts payable-Other

71,972

Operating loans

131,937

Income taxes payable

513,030

Other

502,326

Other

32,415

Non-current assets:

35,968,145

Non-current liabilities:

171,487

Lease obligations

Buildings

145,032

Other

Tools, furniture and fixtures

232,760

Leased assets

11,122 ( Net assets )Property and equipment:

Total liabilities

135,644514
135,129756,333

Accumulated depreciation△ 217,428

Investments and other assets:

35,796,658

Capital stock

79,922,500

Investment in subsidiaries and associates

10,388,121

Capital surplus:

79,922,500

Allowance for investment loss

△ 140,063

Investments in capital of subsidiaries and associates

25,290,869

Shareholders' equity:

Legal capital surplus
Retained earnings:

153,161,817

79,922,500△ 6,683,182

Long-term accounts receivable - other150,220

Other retained earnings:△ 6,683,182

Lease deposits

106,949

Retained earnings brought forward△ 6,683,182

Valuation and translation adjustments△ 858,972

Other
Deferred assets:
Share issuance cost
Total assets
Amounts of less than 1 thousand yen are rounded off.

560
258,494
258,494
153,059,177

Valuation difference on available-for-salesecurities△ 858,972

Total net assets

152,302,844

Total liabilities and net assets

153,059,177

Statement of Operations(From April 1, 2020 to March 31, 2021)（Thousands of yen）
Operating revenue

3,193,178

Operating expenses

2,187,292

Operating income

1,005,886

Non-operating income
Interest income

87

Other

289

377

Non-operating expenses
Interest expenses

50

Amortization of share issuance cost

97,815

Foreign exchange losses

129,935

227,801

Ordinary income

778,461

Income before income taxes

778,461

Income taxes

112,338

Net income

666,123

Amounts of less than 1 thousand yen are rounded off.

Statement of Changes in Equity(From April 1, 2020 to March 31, 2021)（Thousands of yen）
Valuation andtranslation
adjustments

Shareholders' equity

Capital surplus

Retained earnings
Total net assets
Other retained
earnings

Capital stock

Total shareholders'equityValuation difference
on available-for-salesecurities

Legal capital surplus
Retained earnings
brought forward
49,722,500

49,722,500△ 7,349,305

92,095,694△ 3,821,182

88,274,511

30,200,000

30,200,000-

60,400,000-

60,400,000

Net income--

666,123

666,123-

666,123

Net changes of items other than shareholders' equity

-

-

-

-

2,962,209

2,962,209

Total changes of items during period

30,200,000

30,200,000

666,123

61,066,123

2,962,209

64,028,332

Balance at March 31, 2021

79,922,500

79,922,500△ 6,683,182

153,161,817△ 858,972

152,302,844

Balance at April 1, 2020
Changes of items during period
Issuance of common stock

Amounts of less than 1 thousand yen are rounded off.

Notes to Financial Statements
Amounts of less than 1 thousand yen are rounded off.
1. Significant Accounting Policies(1) Basis and method of valuation of securities① Operational investment securities
Securities without market quotations:
Stated at cost determined by the moving-average method② Investment in subsidiaries and associates
Stated at cost determined by the moving-average method③ Investments in capital of subsidiaries and associates
Stated at cost determined by the moving-average method
The amounts equivalent to interests of limited partnerships are accounted for on the net amountequivalent to interest regarding to the balance sheet based on the most recent financial statements
as of the closing date which is specified in the Partnership Agreement. And the related revenue andcost equivalent to such investments are included in operating revenue and operating expenses inthe statement of income, respectively.

(2) Depreciation method of non-current assets① Property and equipment (excluding leased assets)
Depreciation is provided by the declining-balance method, except for the buildings (excluding
building facilities), building facilities and structures acquired on or after April 1, 2016, which are
depreciated using the straight-line method.
The useful lives adopted for major assets are as follows:
Buildings: 10 -15 years
Tools, furniture and fixtures: 3-10 years② Leased assets
Leased assets under finance lease arrangements which do not transfer the ownership of the leased
property to the lessee are depreciated to a residual value of zero by the straight-line method using
lease period as the useful life.

(3) Amortization method of deferred assets① Share issuance cost
Share issuance cost is amortized by the straight-line method over 3 years.

(4) Accounting for provisions① Allowance for doubtful accounts
To provide for the bad debts loss of receivables, an estimated uncollectible amount is provided byconsidering the individual collectability.
② Provision for bonuses
For payment of employees’ bonuses, provision is provided for the portion of the total anticipatedbonuses that is attributable to the fiscal year.
③ Allowance for investment loss
Estimated amount of possible losses from investment in subsidiaries and associates held at thebalance sheet date are accrued based on the status, etc. of the investees.

(5) Other significant matters which constitute the basis for preparation of the financial statements
Accounting for consumption taxes
Consumption taxes are excluded in transaction amounts.

2. Notes to changes in presentation
The Company adopted the “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ
Statement No.31, March 31, 2020) from the fiscal year ended and included “Notes to accounting
estimates” in the notes to the financial statements.

3. Notes to accounting estimates(1) Valuation of Operational investment securities, Investment in subsidiaries and associates andInvestments in capital of subsidiaries and associates① Amounts recorded on the financial statements for the current fiscal year
Operational investment securities

71,888,855 thousand yen

Investment in subsidiaries and associates

10,388,121 thousand yen

Investments in capital of subsidiaries and associates

25,290,869 thousand yen

Allowance for investment loss②

140,063 thousand yen

Information on the content of significant accounting estimates for identified items

The fair values of Operational investment securities, Investment in subsidiaries and associates andInvestments in capital of subsidiaries and associates are deemed to be extremely difficult tomeasure.
In valuation of stocks, etc., when the business condition of the investee deteriorates or excess
earning power decreases, etc., the recoverability of fair value of stocks, etc. is estimated inaccordance with the business plan of the investee, etc.
The estimate may be affected by future unpredictable changes in economic condition, etc. and it
may have a significant impact on the financial statements when revise is required in the businessplan of the investee, etc.

4. Notes to balance sheet(1) Assets pledged as collateral
The Company provide collateral for the loans of the investee.
The investee: Japan Airport Management Partners Co., Ltd.
Collateral: Operational investment securities US$2,200,000(2) Loan guarantee liabilities
The Company guarantees loans of the investee from financial institutions.

The investee:

Concessionária do VLT Carioca S.A.

Amount of guarantee:

The investee:

R$14,508,916

Thi Vai International Port Company Ltd.

Amount of guarantee:

US$750,000

The investee: Yangon Museum Development Pte. Ltd.
Amount of guarantee:

US$41,760,000

5. Notes to statement of operations
There are no items to be disclosed.

6. Notes to statement of changes in equity
Class and number of shares at the end of the fiscal year:
Common stock

3,196,900 shares7. Notes to taxes effect accounting
Main sources of deferred tax assets and liabilities:
Deferred tax assets:
Loss carryforwards

1,746,524 thousand yen

Accrued enterprise taxes

102,834 thousand yen

Provision for bonuses

4,385 thousand yen

Valuation difference on available-for-sale securities

356,770 thousand yen

Loss on valuation of shares of subsidiaries and associates

120,927 thousand yen

Allowance for investment loss

42,887 thousand yen

Foreign exchange losses

21,285 thousand yen

Lease deposits (Asset retirement obligations)

14,535 thousand yen

Other1,780 thousand yen

Subtotal

2,411,930 thousand yen

Valuation Allowance
Total△2,411,930 thousand yen－ thousand yen

Deferred tax liabilities:
Valuation difference on available-for-sale securities

135,129 thousand yen

Total

135,129 thousand yen

Net deferred tax liabilities

135,129 thousand yen8. Notes to financial instruments(1) States of financial instruments① Management policy on financial instruments
The Company conducts investment and loan activities based on the standards stipulated in the Act
on Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development. To
conduct investment and loan activities, the Company raises the necessary funds by equity capitaland issuance of Government-Guaranteed Bonds.
Regarding fund management, the Company invests only in short-term deposits to secure liquidity
and safety of funds.
② Features and risks of financial instruments
Financial instruments held by the Company are short-term deposits. There is no risk of fluctuations
in market prices.
Operating loans are loans to supported entities, operational investment securities, investment in
subsidiaries and associates and investments in capital of subsidiaries and associates held by theCompany are stocks and other financial instruments loaned and invested by the Company and are
exposed to credit risk of the investees and liquidity risk due to unlisted stocks, etc.
Operating loans, operational investment securities, investment in subsidiaries and associates andinvestments in capital of subsidiaries and associates which are denominated in foreign currencies
are exposed to the risk of exchange fluctuations.
③ Risk management of financial instrumentsⅰ) Management of liquidity risk to financing
The Company controls liquidity risks by monitoring deposits and payments and preparing thestatement of cash positions regularly.
ⅱ) Management of credit risk of the investees and borrowers
The Company timely and regularly monitors the business conditions of the investees andborrowers and makes efforts to promptly obtain information of deterioration of their financial
conditions and deviation from their business plan, etc.
ⅲ) Management of exchange fluctuation risk to operating loans, operational investment securities,
investment in subsidiaries and associates and investments in capital of subsidiaries andassociates which are denominated in foreign currencies.
The Company controls exchange fluctuation risks regarding operating loans, operational
investment securities, investment in subsidiaries and associates and investments in capital ofsubsidiaries and associates which are denominated in foreign currencies by continuously
monitoring exchange rate fluctuations.

(2) Fair value of financial instruments
Book value, fair value and the difference between them as of March 31, 2021 are as follows.
Financial instruments of which the fair value is extremely difficult to measure are not included
below.
(Thousands of yen)Book value

Fair value

Difference

Cash and deposits

44,309,419

44,309,419－

Operating loans

131,937

131,937－① Fair value measurement of financial instruments
Cash and deposits:
The book value approximates fair value due to the short term settlements.
Operating loans:Calculated by discounting the sum of its principal and interest at an interest rate at which asimilar new loan transaction is assumed to be made.
② Financial instruments of which the fair value is extremely difficult to measure are as follows:(Thousands of yen)Book value
Operational investment securities
Unlisted stocks (*1)

71,888,855

Investment in subsidiaries and associates
Unlisted stocks (*1)

10,388,121

Investments in capital of subsidiaries andassociates

25,290,869

The amounts equivalent to interests of limited
partnerships (*2)(*1) Unlisted stocks are not included in the above disclosure of “book value, fair value and thedifference between them”, because they have no quoted market price and their fair value isextremely difficult to measure.
(*2) Because interests of limited partnerships are composed of items that are considered extremely
difficult to determine the market value, the amounts are not included in “carrying amount, fairvalue and the difference between them” table above.

③ Future redemption of financial assets with maturities are as follows:(Thousands of yen)

Due after one year

Within one year
Cash and deposits

44,309,419

－

9,924

122,013

Operating loans

9. Notes to related party transactions(1) The Company directors and principal shareholders, etc.
（Thousands of yen）
Attribution

Name

Percentage

Relationshipof votingNature ofTransaction

Accounting

Year-endtransactions

amountsclassification

balance60,400,000－－

rights ,etc.
Principal

Minister of

Owned

Investments

Investments

shareholder

Finance

directly

in capitalin capital

96.28%(Note 1)

(Note 1) Minister of Finance acquired shares issued by the Company in the amount of ¥50 thousand
per share.

(2) Subsidiaries and associates, etc.
（Thousands of yen）
Attribution

Name

Percentage

Relationshipof votingNature ofTransaction

Accounting

Year-endtransactions

amountsclassification

balance

2,514,983

Investments in

25,290,869

rights ,etc.
SubsidiaryJapan Texas

Directly

Payment for

Payment for

High-Speed

holding

investments

investments

capital ofRailway Cayman

56.80%

in capitalin capitalsubsidiaries(Note 2)and associates

LP(Note 2) Japan Texas High-Speed Railway Cayman LP is a limited partnership that paid US$ 23,769
thousand under a partnership agreement.

10. Notes to per share information
Net assets per share¥47,640.79

Net income per share¥283.67