This document has been translated from Japanese original for reference
purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail. JAIC
assumes no responsibility for this translation or for direct, indirect or any
other forms of damages arising from the translation.
April 7, 2022
Company name:

Japan Asia Investment Co., Ltd. (JAIC)

Listed on:

Tokyo Stock Exchange Standard Market (Securities code: 8518)

Representative:

Tetsuro Shimomura, President and CEO

Contact:

Kenji Kishimoto, Executive OfficerTel:+81-3-3221-8518Notice of Revision on “Result Forecast Consolidated under thePrevious Accounting Standard”
Japan Asia Investment Co., Ltd. (JAIC) hereby announces that, based on therecent business performance etc., JAIC has revised its “result forecast
consolidated under the Previous Accounting Standard” for the fiscal year
ended March 31, 2022 (from April 1, 2021 to March 31, 2022), previously
announced on May 14, 2021.
Though JAIC doesn’t disclose consolidated result forecast, JAIC expects that
there will be a significant difference between revised “result forecast
consolidated under the Previous Accounting Standard” and consolidated result
forecast due to differences in accounting standards applied to.
The “result forecast consolidated under the Previous Accounting Standard” isbased upon the information currently available to JAIC and certain
assumptions. In the process of settlement procedure, various factors could
cause actual results to differ from this result forecasts.

11. Revision on the “ result forecast consolidated under the Previous
Accounting Standard”
For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31,2022)

Previousforecast（A）
Revisedforecast（B）
Change（B-A）
Percentage
Change(％)

Consolidated

Consolidated

Consolidated

ProfitConsolidated

operatingoperatingordinary

attributablenet income

revenueincomeincometo owners

per shareof parent（*Note）（Millions of（Millions of（Millions of（Millions of（Yen）

yen）yen）yen）

yen）

2,950

510

430

340

19.21

2,400

80

60

30

1.69

(550)

(430)

(370)

(310)

(18.6)(84.3)(86.0)(91.2)

3,089

214

173

144

（Reference）
Consolidated
financial results
under the Previous

8.18

AccountingStandards for the
fiscal year ended
March 31, 2021

*Note 1: Consolidated net income per share in the table above is calculated based on thenumber of shares issued excluding the number of treasury stock as at March 31, 2022.
*Note 2: Please refer to 3-3 as for the significant difference between “result forecast
consolidated under the Previous Accounting Standard” and actual results consolidated.

2. Reasons for revision
At the beginning of the term JAIC expected to achieve the result forecast mainly
by capital gains from mega solar and other projects, IPOs in Japan and trade sales
in overseas.
In the first half of the term, however, the expected sale of unlisted shares waspostponed to the next fiscal year or later. Additionally, extraordinary loss fromthe fund operated by the third party was incurred outside the forecast. As aresult, performance in the first half was below the initial result forecast.
On the other hand, JAIC expected to increase capital gains in the second half
due to IPOs of domestic investees that were not expected at the beginning of
the term. JAIC expected to offset the downside from the plan in the first half by
the upside in the second half.
For sales of mega solar projects, JAIC earned more than planned in the second
half. For sales of shares, however, JAIC couldn’t reach target capital gains. Salesof listed shares didn’t reach the target because the share prices were lower thanexpected and couldn’t reach the conditions for unlocking lockup. Sales ofunlisted shares also didn’t reach the target because some sale negotiations
lasted longer than expected and didn’t reach the agreement by the end of the2

term.
As a result, gains from sales of shares in the fourth quarter was lower thanexpected and operating revenue is expected to be 18.6% less than the previousforecast. This leads to forecasts for both operating income, ordinary income andprofit attributable to owners of parent dropping from the previous forecast.
Please be noticed that the “result forecast consolidated under the Previous
Accounting Standard” is based upon the information currently available to JAIC
and certain assumptions. In the process of settlement procedure, various factors
could cause actual results to differ from this result forecasts.
3. Consolidated result forecast and significant difference from “ ResultForecast Consolidated Under the Previous Accounting Standard”
3-1. Result forecast
The private equity investment business conducted by the JAIC Group issignificantly affected by changing factors such as stock markets, given thecharacteristics of the business. In addition, it has been difficult to forecast
results reasonably in the rapidly changing environment in recent years. Therefore
JAIC doesn’t disclose the results forecast. For the convenience of investors andshareholders, however, JAIC discloses “result forecast consolidated under thePrevious Accounting Standard” even though it doesn’t have enough rationality.
3-2. “Result forecast consolidated under the Previous Accounting Standard”
There is a difference between current accounting standards and those applied
to the “Result forecast consolidated under the Previous Accounting Standard”.
As of Fiscal year ended March 31, 2007 the JAIC Group has adopted “PracticalSolution on Application of Control Criteria and Influence Criteria to Investment
Associations” (Accounting Standards Board of Japan Practical Issues Task Force
No. 20 issued on September 8, 2006), and consolidated financial statements,
etc., are being prepared with the inclusion in the consolidation of some of theoperational investment funds managed by the JAIC Group.
On the other hand, the operational investment funds managed by the JAIC Groupare excluded from the scope of consolidations in the financial statements etc.,
prepared in accordance with the previous accounting standards. Assets,
liabilities, revenues and expenses for investment funds are reported based on
the investment portion by JAIC and its subsidiaries and by excluding the portion
held by external investors. In addition, company-type funds are excluded fromthe scope of consolidations.
To enable investors and shareholders to have an accurate understanding of theJAIC Group’s business results and financial position, JAIC considers it essential
also to disclose financial statements, etc., prepared in accordance with theprevious accounting standards. Therefore, for reference purposes, JAIC willcontinue to disclose financial statements, etc., in accordance with the previous
accounting standards.
3-3. significant difference between revised “result forecast consolidated under3

the Previous Accounting Standard” and consolidated result forecast“Result forecast consolidated under the Previous Accounting Standard” differsfrom consolidated results forecast under current accounting standard because
different accounting standards applied to.
In the fiscal year March 2022, under the previous accounting standards, about
450 million yen of gain on sale of a mega solar project was recorded as operating
revenue. On the other hand, under current accounting standards, the gain wasrecorded as extraordinary income and profit attributable to non-controllinginterest. In addition, some of the operating expenses of funds that areconsolidated subsidiaries are excluded from “ Result forecast consolidated
under the Previous Accounting Standard”.
In this connection, consolidated result forecast is estimated lower than the“ Result forecast consolidated under the Previous Accounting Standard” inconsolidated operating income, consolidated ordinary income and profit
attributable to owners of parent, respectively.
(End)4