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.
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Japan Asia Investment Co., Ltd. (JAIC)Tokyo Stock Exchange Section 1 (Stock code: 8518)
Tetsuro Shimomura, President and CEOKenji Kishimoto, Executive Officer+81-3-3221-8518

February 18, 2021

Notice of Posting Extraordinary Income
Japan Asia Investment Co., Ltd. (JAIC) hereby announces that, a gain on sales of fixed
assets (extraordinary income) of approximately 600 million yen is expected to be recordedin the consolidated financial statements for the fourth quarter of the fiscal year ending
March 2021. This extraordinary profit will be recorded as a result of the sale of three mega
solar power plants of 5.6 MW (solar cell panel system capacity basis, the same shall applyhereinafter) owned by a special purpose company in which the Group invests in a silentpartnership.
Of this extraordinary income, the amount attributable to JAIC Group is approximately 450
million yen.
The accounting standards that are applied to the financial statements based on thePrevious Accounting Standards are different. Therefore, this approximately 450 million yen
is expected to be recorded in the operating income item, which is the partnership interest
income.
JAIC doesnʼt revise “result forecast consolidated under the Previous Accounting Standard”
because the sale of the mega solar power plants this time was a prerequisite. For details,
please refer to the "Financial Results for the Third Quarter of the Fiscal Year Ending March
2021 [Japanese Standards] (Consolidated)" disclosed on February 12, 2021.
JAIC discloses “result forecast consolidated under the Previous Accounting Standard” asreference information in place of the earnings forecast for the convenience of investors
and shareholders.

1. Outline of the Transaction
Recently social need for clean energy are growing and future uncertainty caused by
COVID-19 are increasing. This has led many investors to interest in purchasing mega solar
projects for which electricity is being sold. Therefore, JAIC plans to sell 7 mega solar
projects amounting to 18.3 MW (including partial sales) in the current fiscal year and thissale is a part of the plan.

1

List of mega solar projects to be soldName of power plant

Maximum
outputLocation1

Yokotsunooka Solar Power Plant

Nanae Town, Kameda
County, Hokkaido

2Kami Solar Park

Kami Town, Miyagi

2.4 MW

3

Fukushima Inawashiro Solar
Power Plant

Yama County, Fukushima

1.2 MW

2.0 MWTotal

2. Schedule
Date of execution
Settlement day

5.6ＭＷ

February 22, 2021（scheduled date）
March 15, 2021（scheduled date）

3. Forecast
Any forward-looking statements in this document are based upon the information
currently available to JAIC at the time of writing and certain assumptions. Various factors
could cause actual results to differ materially from these result forecasts. In case there
is a need for timely disclosure, we will disclose promptly.

(1) Impact on consolidated financial statements
The gain on sales of fixed assets of approximately 600 million yen is expected to berecorded in the consolidated financial statements in the fourth quarter of the fiscal year
ending March 2021. Of this extraordinary income, the amount attributable to JAIC Group
is approximately 450 million yen.
(2) Impact on “result forecast consolidated under the Previous Accounting Standard”
The accounting standards that are applied to the financial statements based on thePrevious Accounting Standards are different. Therefore, the approximately 450 million
yen is expected to be recorded in the operating income item, which is the partnershipinterest income.
JAIC doesnʼt revise “result forecast consolidated under the Previous Accounting Standard”
because this transaction was a prerequisite. For details, please refer to the "FinancialResults for the Third Quarter of the Fiscal Year Ending March 2021 [Japanese Standards](Consolidated)" disclosed on February 12, 2021.

4. “Result Forecast Consolidated Under the Previous Accounting Standard”
The private equity investment business conducted by the JAIC Group is significantly affectedby changing factors such as stock markets, given the characteristics of the business. Inaddition, it has been difficult to forecast results reasonably in the rapidly changing
environment in recent years. Therefore JAIC doesnʼt disclose the results forecast. For theconvenience of investors and shareholders, however, JAIC discloses “ result forecast
consolidated under the Previous Accounting Standard” even though it doesnʼt have enoughrationality.
2

（Note）Previous Accounting Standard
As of Fiscal year ended March 31, 2007 the JAIC Group has adopted “Practical Solution 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 the operational investment funds managed by
the JAIC Group.
Nevertheless, to enable investors and shareholders to have an accurate understanding of
the JAIC Groupʼs business results and financial position, JAIC considers it essential also todisclose financial statements, etc., prepared in accordance with the previous accountingstandards. Therefore, for reference purposes, JAIC will continue to disclose financial
statements, etc., in accordance with the previous accounting standards.
In those financial statements etc., prepared in accordance with the previous accounting
standards, assets, liabilities, revenues and expenses for investment funds were 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 from thescope of consolidations in those financial statements.
(End)3