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.

Qualitative

InformationonConsolidated

OperatingResults for the Year Ended March 31, 2020
Forward-looking statements contained in the report are judgments and forecasts
made by the JAIC Group as of the end of the fiscal year under review.

(1) Outline of consolidated operating results
The consolidated operating results of the JAIC Group for the year ended March 31,
2020 (from April 1, 2019 to March 31, 2020) recorded operating revenue of 3,950
million yen (up 12.8% year-on-year), operating gross profit of 1,993 million yen(up 24.0 % year-on-year), operating profit of 716 million yen (up 143.6 % yearon-year), ordinary profit of 441 million yen (up 7,509.0 % year-on-year) and profit
attributable to owners of parent of 343 million yen (down 40.5 % year-on-year).
The breakdown of operating results and the background of our business activities
are as follows.
(1-1) Breakdown of Operating Results(a) Breakdown of operating revenue and operating cost
(Fund management fees)
Investment fund management fees decreased 12.0% by year-on-year to 134 million
yen. This was attributable primarily to a decline in fees from some investment funds
in line with the liquidation of investment funds and the changes in the fee structuresduring the previous consolidated fiscal year.
(Investment income)Proceeds of sales of operational investment securities increased by 45.9% year-onyear to 2,768 million yen and realized capital gains, which are calculated bydeducting cost of securities sold from proceeds of sales of operational investment
securities, increased by 34.1 % year-on-year to 1,717 million yen.

As for private equity investment, the proceeds of sales of operational securities
increased but realized capital gain ended roughly the same as the previous fiscal
year. This was due to a decrease in sales of listed shares with higher investment
returns compared with the previous fiscal year and the recording of a loss on sales
as a result of a sale of unlisted shares with a large amount of investment byprioritizing the liquidation of shares, Meanwhile in project investment, the proceedsof sales of operational securities and realized capital gain increased from theprevious fiscal year as the number of sale of projects increased from four in theprevious fiscal year to seven in the fiscal year under review.
The total amount of investment write-offs and provision for allowance for possible
investment losses decreased by 60.2% year-on-year to 283 million yen. In both thecurrent fiscal year under review and the previous fiscal year, losses were recorded
for investment assets whose sales were expected to fall below the investment
amount. In the previous fiscal year, losses were recorded for the shares of an
overseas investee company in which JAIC has invested in a large amount for a long
period of time. Meanwhile, in the current fiscal year under review, the amount ofloss declined since losses were recorded for shares of investee companies both inJapan and overseas in which JAIC has invested in a smaller amount. As a result,investment income, which is calculated by deducting investment write-offs andprovision for allowance for possible investment losses from realized capital gains,
increased by 151.3% year-on-year to 1,434 million yen.
(Fund interests income, etc.)
Fund interests income, etc. includes revenue from electricity sales and revenue fromvegetable sales of the projects operated by the JAIC Group, interests income fromthe projects operated by other companies (net profit from the projects sourced fromthe revenue from electricity sales, gains from the sale of projects), interests income
from private equity funds operated by other companies, interest and dividend
income and other income.
The total amount of fund interests income, etc. for the current fiscal year underreview decreased by 27.5% year-on-year to 1,028 million yen. Out of this, revenue
from electricity sales and revenue from vegetable sales of the projects operated by
the JAIC Group accounted for 914 million yen (down 15.0% year-on-year). The
revenues dropped from the previous fiscal year since the decline in revenue fromelectricity sales of the projects sold during the previous fiscal year could not becovered by the revenue from the new projects. In addition, interests income fromthe private equity funds operated by other companies decreased by 81.2% yearon-year to 59 million yen owning to a decline in gains on sale of shares by the funds.
(Fund interests losses, etc.)
Fund interests losses, etc. include cost of electricity sales and cost of producing
vegetables of the projects operated by the JAIC Group, interests losses (costs, etc.
of projects under construction) of the projects operated by other companies andinterests losses, etc. of the private equity funds operated by other companies.
The total amount of fund interests losses etc. for the current fiscal year under review
increased by 9.7% year-on-year to 617 million yen. Out of this, cost of electricity
sales and cost of producing vegetables of the projects operated by the JAIC Groupaccounted for 583 million yen (up 14.3% year-on-year), reflecting an increase incost of producing vegetables at vegetable plants compared with the previous fiscal
year.
As a result, operating revenue increased by 12.8% year-on-year to 3,950 million
yen, operating cost increased by 3.3% year-on-year to 1,956 million yen andoperating gross profit increased by 24.0% year-on-year to 1,993 million yen.
(b) Selling, general and administrative expenses and operating income
The total amount of selling, general and administrative expenses decreased by 2.8%
year-on-year to 1,277 million yen. The decrease was mainly due to a reduction inpersonnel expenses and administration outsourcing costs.
As a result, operating profit increased by 143.6% year-on-year to 716 million yen.
(c) Non-operating income, non-operating expenses and ordinary income
Non-operating income decreased by 66.9 % year-on-year to 32 million yen due
mainly to a decline in foreign exchange gains that occur at the time of the collectionof investment assets denominated in foreign currencies.
Non-operating expenses decreased by 20.3 % year-on-year to 307 million yen
primarily reflecting a drop in interest expenses. In addition to the reduction of loans
payable on a non-consolidated basis, loans payable for the projects sold during theprevious fiscal year decreased.
As a result, ordinary profit increased by 7,509.0% year-on-year to 441 million yen.
(d) Extraordinary income and profit attributable to owners of parent

(Extraordinary income)
The Company is aggressively conducting early liquidation of assets other thanoperational investment assets based on its medium-term management plan ofpromoting the replacement of assets. For the previous fiscal year, total
extraordinary income amounted to 723 million yen due mainly to the recording ofgain on redemption of investment securities of 425 million yen and gain on sales ofshares of subsidiaries and associates of 226 million yen. On the other hand, for thecurrent fiscal year under review, total extraordinary income amounted to 189 million
yen reflecting the recording of gain on sales of investment securities of 173 million
yen etc.
For the previous fiscal year, total extraordinary loss amounted to 171 million yen
due mainly to the provision for loss on liquidation of subsidiaries and associates of
63 million yen. On the other hand, loss on redemption of investment securities of 2
million yen (down 98.8% year-on-year) was recorded as extraordinary loss for thecurrent fiscal year under review.
As a result, loss before income taxes increased by 12.7% year-on-year to 628
million yen.
(Profit attributable to owners of parent)
Total income taxes of 23 million yen (up 26.4% year-on-year) were recorded
primarily for subsidiaries. In terms of tax, both in the current fiscal year underreview and the previous fiscal year, JAIC conservatively estimated tax effectaccounting and did not recognize deferred tax assets.
Profit/loss attributable to non-controlling interests represents the portion of
profit/loss from the investment funds and projects operated by the JAIC Group
which is attributable to investors other than the JAIC Group. In the current fiscal
year under review, due to profit from the aforementioned investment funds andprojects, resulting in a profit attributable to non-controlling interests of 261 million
yen (compared to a loss attributable to non-controlling interests of 38 million yen
for the previous year).
As a result, profit attributable to owners of parent decreased by 40.5% year-onyear to 343 million yen.
(1-2) Business Position(a) Investment activities
For the current fiscal year under review, new investments decreased by 10.0%

year-on-year to 3,374 million yen in 22 companies/projects. As of March 31, 2020,
the balance of investments increased year-on-year to 15,101 million yen in 130
companies/projects (compared to 13,951 million yen in 134 companies/projects asof March 31, 2019).
As for private equity investment, when JAICʼs own capital is used, JAIC makes
strategic investment in partner companies for project oriented investment in a
selective manner based on business themes in line with its management philosophy
in principle. When the capital of a fund is used, JAIC makes investment pursuant to
the fundʼs investment policy.
For the current fiscal year under review, new investments significantly increased by
795.3% year-on-year to 1,224 million yen in 12 companies as a result of an increasein strategic investment.
The balance of investments was 8,405 million yen, roughly the same level of theprevious fiscal year due to the sale of shares despite an increase in new investments.
(compared to 8,437 million yen as of March 31, 2019).
Looking at project oriented investment for the current fiscal year under review, newinvestments decreased by 40.5% year-on-year to 2,150 million yen in 10 projects.
The decline reflecting the fact that the size of mega solar projects that JAIC invested
in during the current fiscal year under review was smaller than those during theprevious fiscal year.
JAIC invested in three new and one existing mega solar projects. In addition, JAIC
made additional investment in a vegetable plant and invested in an operator of anintermediate treatment facility for waste that can be used as law materials forbiogas power generation. JAIC also invested in a project of nursing facilities. In
addition, as new fields for project oriented investment, JAIC invested in logistics
facility construction projects and a commercial building in Japan.
As for the sale of projects, JAIC sold or gained returns on four projects, including
non-operating projects, with a capacity of 8.2 MW in total during the previous fiscal
year. In the fiscal year under review, it sold seven operating projects with a capacityof 16.5 MW in total. Of the projects sold during the fiscal year under review, six
projects with a capacity of 14.2 MW were transferred to the JAIC-Solar Fund, L.P.,
II, which is operated by the JAIC Group; therefore, they continue to be included in
the number and amount of the balance of investments mentioned above. As a result,the balance of investments as of March 31, 2020 increased year-on-year to 6,696

million yen (compared to 5,514 million yen as of March 31, 2019).
As of March 31, 2020, JAIC, including JAIC-Solar Fund, L.P.,Ⅱ, invested in 25 mega
solar projects with the capacity of 97.5ＭＷ which are either currently sellingelectricity or are under construction or planning. Out of these mega solar projects,
the portion that attributable to JAIC is 45.2ＭＷ in capacity. JAIC also invested inrenewable energy projects other than mega solar projects including two biogas
projects with the capacity of 1.6ＭＷ, one woody biomass project with the capacityof 2.0ＭＷ, and one wind power project with the capacity of 25.2ＭＷ at most.
(b) Management of investment funds
As of March 31, 2020, the number of investment funds, for which the JAIC Groupis responsible for management, operation or provision of investment information,
totaled 11, and the balance of total commitment amounts under management
amounted to 17,390 million yen (compared to 10 investment funds with 16,494
million yen as of March 31, 2019).
In the fiscal year under review, JAIC established JAIC-Solar Fund, L.P., II, whichinvests in operating mega solar projects. On the other hand, the balance of totalcommitment amounts under management decreased as a result of foreignexchange fluctuations.
(2) Cash flows(Cash flow from operating activities)
Net cash generated from operating activities decreased year-on-year to 124 million
yen (compared to 299 million yen for the previous fiscal year), due mainly to thepayment for purchase of investment funds of 1,590 million yen (compared to 964
million yen for the previous fiscal year) in line with the progress in investment
activities.
(Cash flow from investing activities)
Net cash generated from investing activities decreased year-on-year to 147 million
yen (compared to 1,224 million yen for the previous fiscal year) mainly due to a
decline in proceeds from redemption of investment securities to 62 million yen(compared to 702 million yen for the previous fiscal year).
(Cash flow from financing activities)
Net cash used in financing activities decreased year-on-year to 1,617 million yen

(compared to 2,173 million yen for the previous fiscal year), reflecting a decrease
in repayments of long-term borrowings as a result of changes in financing policythat had prioritized repayments.
Cash and cash equivalents as of March 31, 2020 decreased by 1,358 million yen
from March 31, 2019 to 2,723 million yen, after deducting effect of exchange ratechange on cash and cash equivalents of 12 million yen.
(3) Financial position(Assets)
Total assets as of March 31, 2020 remained virtually unchanged year-on-year at
28,548 million yen (compared to 28,845 million yen as of March 31, 2019). While
JAIC sold projects operated by the JAIC Group, there was an increase in the assets
of projects those saw progress in construction.
Cash and deposits decreased year-on-year to 4,520 million yen (compared to cash
and deposits of 7,108 million yen as of March 31, 2019). This mainly reflected
repayments of loans payable and the exclusion of deposits held by projects thosewere sold during the fiscal year. Meanwhile, the amount included deposits
attributable to the investment funds operated by the JAIC Group. Those deposits
must be managed in accordance with each fundʼs partnership agreement, and aremanaged clearly separately from cash and deposits belonging to the JAIC Group.
Cash and deposits belonging to the JAIC Group were cash and cash equivalents of
2,723 million yen as of March 31, 2020 (compared to 4,082 million yen as of March
31, 2019) in the consolidated statements of cash flows.
In addition, private equity investments conducted by the JAIC Group are highly
affected by factors such as stock market fluctuations due to the nature of theirbusiness, and it is difficult to make a reasonable forecast of business results in thecurrent volatile environment. As a result, the amount of funds recovered fromprivate equity investments could decline significantly. Under these circumstances,
the JAIC Group must maintain a certain balance of cash and deposits at all times toensure not only the payment of expenses and interest and the repayment of loans
payable but also the investment for future growth.
Property, plant and equipment mainly includes renewable energy power plantfacilities of projects operated by the JAIC Group. Since the increase amount infacilities of projects those saw progress in construction exceeded the decreaseamount in facilities due to the sale of projects, property, plant and equipment
increased year-on-year to 12,119 million yen (compared to 10,656 million yen asof March 31, 2019).
In assets, operational investment securities as of March 31, 2020 decreased yearon-year to 9,848 million yen (compared to 10,242 million yen as of March 31, 2019)
due to progress of the recovery of investments.
Allowance for possible investment losses as of March 31, 2020 amounted to 1,574
million yen (compared to 1,538 million yen as of March 31, 2019). The amountremained virtually unchanged year-on-year, due to the provision for investment
losses in line with the devaluation of investment assets, despite the sale ofinvestment assets with the provision for investment losses.
As a result, the investment loss provision ratio (ratio of allowance for possible
investment losses to operational investment securities) as of March 31, 2020 was
16.0%, up 1.0 points from March 31, 2019.
(Liabilities)
Although JAIC procured new funds through project finance for projects operated by
the JAIC Group, the balance of project finance decreased due to a decrease
following repayments of JAICʼs non-consolidated base loans payable and the sale ofprojects. As a result, total liabilities decreased year-on-year to 19,832 million yen(compared to total liabilities of 20,444 million yen as of March 31, 2019).
In liabilities, total of loans payable and bonds as of March 31, 2020 amounted to
17,334 million yen (compared to 19,552 million yen as of March 31, 2019). Of theforegoing, JAICʼs non-consolidated base loans payable as of March 31, 2020 were
8,166 million yen (compared to 9,784 million yen as of March 31, 2019). Thebalance of loans payable by project finance and bonds for the projects operated by
the JAIC Group as of March 31, 2020 amounted to 9,167 million yen (compared to
9,768 million yen as of March 31, 2019).
JAICʼs non-consolidated base loans payable decreased year-on-year, reflecting therepayments of 1,617 million yen for the current fiscal year under review. JAIC repaid
an additional 513 million yen in April 2020, reducing the balance to 7,653 million
yen. JAIC will continue to reduce its non-consolidated loans payable in the future.
On the other hand, project finance for the projects operated by the JAIC Group willnot affect the financial soundness of the JAIC Group, since its source of payments
is limited to the assets and revenues of the projects. Therefore, JAIC has a policy
to continue to promote leveraged investment by expanding fund raising throughproject finance in a wide range of projects including renewable energy projects
operated by the JAIC Group, thus enhancing its profitability without compromisingon financial soundness.
(Net assets)
In net assets, total shareholdersʼ equity as of March 31, 2020 increased year-onyear to 7,219 million yen (compared to 6,796 million yen as of March 31, 2019),
due to the recording of a profit attributable to owners of parent. On the other hand,
total assets remained virtually unchanged year-on-year. As a result, the equity ratio
as of March 31, 2020 rose by 1.7 points year-on-year to 25.3% (compared to 23.6%
as of March 31, 2019). Total net assets as of March 31, 2020 also increased yearon-year to 8,716 million yen (compared to 8,400 million yen as of March 31, 2019).
Meanwhile, JAICʼs non-consolidated equity ratio as of March 31, 2020 rose 5.7
points year-on-year to 44.6% (compared to 38.9% as of March 31, 2019). This is
as a result of improvement in financial soundness in line with the reduction of loans
payable.
（４）Forecast（４-1）Impact of COVID-19
The risks of COVID-19 that are currently estimated are as follows. The risks thathave manifested themselves are limited at present.
(a) Risks expected when selling listed shares
The selling share price may drop due to a weak stock market or IPOs of investee
companies may be delayed.
(b) Risks expected when selling unlisted shares
Expected sale negotiations may not be completed or may be delayed or selling
prices may drop due to purchasersʼ financing difficulties or deterioration of businessperformance of investee companies subject to the sale, caused by a weakereconomic environment.
(c) Risks expected when selling projects
Expected sale negotiations may not be completed or may be delayed or selling
prices may drop due to purchasersʼ financing difficulties caused by a weakereconomic environment.

(d) Risks expected when evaluating existing investee companies
Loss on evaluation or allowance for loss may be incurred due to deterioration ofbusiness condition of the investee companies.
(e) Risks expected in project investments
Projects under construction may experience suspension of construction work due torequests by the central or local governments to shut down business. Renewableenergy projects currently selling electricity may see an increase in output restraints
due to reduced electricity consumption. Smart-agri projects may experience a
decrease in sales to the restaurant industry due to clientsʼ suspension of business.
(f) Risks expected in JAICʼs sales activities
In its sales activities, JAIC is making efforts to reduce internal infection risks
introducing telework to reduce the number of employees coming to the office by
about 80%. Meetings with external parties are also currently limited to online
meetings, as a rule. As a result, we expect that these may have a negative effecton cultivating new investments. There is also a risk that the efficiency in investment
return activities may drop.
（４－２）Business results and dividend forecasts
The overall private equity investment business conducted by the Group (including
investment partnerships) is 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 rapidly changing environment. Therefore we
do not disclose the results forecast.

For the convenience of investors andshareholders, however, we disclose “result forecast consolidated under the Previous
Accounting Standard” even though it doesnʼt have enough rationality.
JAIC disclosed results forecasts consolidated under the previous accounting
standard as it intends to make efforts to achieve maximum results in the sale ofinvestment assets in the fiscal year ending March 31, 2021 after understanding therisks described above and based on the assumption that their impact will be limited.
For details, please refer to “2. Outlook for the fiscal year ending March 31, 2021
(April 1, 2020 to March 31, 2021)” on page 21 in the summary of consolidated
financial results for the year ended March 31, 2020.
The “result forecast consolidated under the Previous Accounting Standard”

andany other forward-looking statements in this document are based upon theinformation 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.

The Groupʼs basic policy for profit allocation is to provide stable and continued
dividends to its shareholders and at the same time to improve its retained earnings
with the aim of activating its operational investment activities to develop a newrevenue stream and strengthen its financial base. However,regret,JAIC

decided

to

pass

its

dividend

in

the

to

our

great

fiscal

year

under

review due to a large cumulative loss in the past consolidated fiscal years.
JAIC also expects no dividend payment for the fiscal year ending March 31, 2021
since cumulative losses of past years cannot be eliminated although it expects
positive profit attributable to owners of parent in the forecasts consolidated under
the previous accounting standard.
２．Basic Rationale for Selection of Accounting Standards
The JAIC Group intends to prepare consolidated financial statements based onJapanese standards in consideration of the statementsʼ period to period
comparability and comparability between companies for the time being. With regard
to the application of IFRS (International Financial Reporting Standards), JAIC
intends to respond appropriately by taking into account the situations both in Japanand abroad.
(End)