Financial Results Overview
for the 2nd Quarter Ended
September 30, 2019Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: November 14, 2019
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.

http://www.jaic-vc.co.jp-1-

Contents

1 SummaryP3

2 Results for 2Q FY Mar 2020

P4

3 Business Report

P12

4 Full-year result forecasts

P19

5 Appendix

P21

NOTE: The figures in this document are based on consolidated financial statements
prepared in accordance with the previous accounting standards.
http://www.jaic-vc.co.jp-2-

1. Summary
 Results for 2Q FY Mar 2020
• Revenues decreased 3.5% year on year; deficit decreased ¥53 million.
• Evaluation loss on private equity investment assets decreased.
 Business Report• Three new investments of mega solar projects with a ¥30-level FIT price have been executed.
• Three cases of strategic investment in a partner company in project oriented investment have been
carried out.
• IPOs in 2Q:
StemRim Inc. listed on the Mothers section of the Tokyo Stock Exchange on August 9.
PBsystems, Inc. listed on the Q-Board of the Fukuoka Stock Exchange on September 12.
• IPOs in 2Q onward: Fangdd Network Group Ltd. Listed on the Nasdaq Global Market on Nov 11.
 Full-year result forecasts• There are no changes to the full-year result forecasts. Some of the gains on sale of shares andsales from consulting that had been expected in 1H are expected to be booked in 2H.
• Gains on sales of shares are expected to concentrate in 4Q. Additional domestic IPO is expected.
• We plan to cover potential underperformance of share sale gains with sale of mega solar projects.

http://www.jaic-vc.co.jp-3-

2. Results for 2Q FY Mar 2020

Outline of results

P5

Break down of operating revenue & operating cost

P8

Progression status of the medium-term business plan

P9

Progression status of KPI

P11

http://www.jaic-vc.co.jp-4-

2. Results for 2Q FY Mar 2020 – Outline of results – I/SFY Mar 2019 (2Q)

FY Mar 2020 (2Q)

(Actual)(Actual)AmountAmount(million yen)(million yen)

ChangeOperating revenue

716

691

(3.5%)

Operating cost

638

582

(8.7%)

Operating gross profit

78

108

39.2%

SG&A expenses

543

530

(2.4%)

Operating income

(465)

(421)

-

Ordinary Income

(460)

(483)

-

Profit attributable to owners of parent

(534)

(481)

-

 Year on year change: 3.5% decrease in revenue; ¥53 million yen reduction in deficit
 Operating revenue slightly decreased year on year as drop in interest income from other company
funds was covered by an increase in gains on share sale.
 Of the operating cost, evaluation loss on private equity investment assets decreased, while operating
gross profit increased, reducing final loss.

http://www.jaic-vc.co.jp-5-2. Results for 2Q FY Mar 2020 – Outline of results – B/S
As of Mar 2019

FY Mar 2020 (2Q)

(Actual)(Actual)AmountAmount(million yen)(million yen)

Change17,305

15,761(8.9%)(a) Cash and deposits

5,564

2,825

(49.2%)(b) Project oriented investment securities

5,514

6,667

20.9%

Strategic investment securities in partner companies

373

745

99.9%

4,765

4,577

(4.0%)（c） Loans payable

9,784

8,689

(11.2%)

Total shareholders' equity

6,840

6,507

(4.9%)(a) + (b) - （c）

1,294

803

(37.9%)

Total assets

Private equity investment securities after deducting
Allowance for possible investment loss except strategic
investment in partner companies

 Outstanding project oriented investment: The balance increased due to steady investment
 Outstanding strategic investment: The balance increased due to three investments
 Financial balance: Maintained a positive balance despite a decrease due to progress of investment(Cash & deposits + project oriented investment – loans payable)
http://www.jaic-vc.co.jp-6-

2. Results for 2Q FY Mar 2020 – Outline of results – C/F(JPY million)

FY Mar 2019 (2Q)

FY Mar 2020 (2Q)

(Actual)(Actual)Operating CF

458

(870)

Investing CF

65

56

Financing CF(1,668)(1,095)

Change in Net CF(1,158)(1,920)

3,599

2,161

Cash & Cash Equivalents at End
of Period Operating CF: Net cash used was ¥870 million
Ended in negative cash flow due to the implementation of investment
 Investing CF: Net cash provided was ¥56 million
Ended in positive cash flow due to redemption of a fund
 Financing CF: Net cash used was ¥1,095 million
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
http://www.jaic-vc.co.jp-7-

2. Results for 2Q FY Mar 2020 –Break down of operating revenue & operating cost
Total
（JPY million）(Actual)(Actual)(Actual)(Actual)(Actual)

716

691

582

586

133

104

Fund management fees etc.

129

107

128

106

0

1

Proceeds of sales of securities

196

406

172

406

23

0

Fund interests income etc.

367

155

271

66

96

89

Other operating reveue

22

20

9

7

13

13

638

582

621

531

16

50

205

356

188

356

16

0

420

160

420

160

-

-

Fund interests losses etc.

8

61

8

11

-

50

Other operating costs

3

2

3

2

-

-

78

108

(39)

54

117

54

Operating revenue

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

Operating Gross ProfitProject oriented investment

FY Mar 2019 (2Q) FY Mar 2020 (2Q) FY Mar 2019 (2Q) FY Mar 2020 (2Q) FY Mar 2019 (2Q) FY Mar 2020 (2Q)
(Actual)

Private equity investment

In private equity investment, operating gross profit turned positive.
In operating revenue, gains on sale of listed Japanese shares and unlisted Chinese shares increased, compensating
for a drop in profit from other companies' funds included in gains on partnership interests, etc.
In operating cost, a large amount of evaluation loss booked on overseas investee companies in the same period lastyear decreased in this quarter.
In project oriented investment, operating gross profit decreased as there was no sale of project and losses onpartnership interest, an operating cost item, increased due to advance expenditure for vegetable factory.

http://www.jaic-vc.co.jp-8-

2. Results for 2Q FY Mar 2020 –Progression status of the medium-term business plan – Private equity
Plan

Progress

Sale ofexisting
portfolio

In addition to achieving sale proceedsfrom IPOs, liquidize unlisted shares andnon-operating assets.

• Shares of Japanese companies that carried out IPOs in
the past fiscal years were sold and a large Chinese
investee was liquidated.
• In 2H we aim to liquidate some of the unlisted shares
which we planned to carry out in 1H and non-operating
assets.

Establishm
ent offunds

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

Solicitation of investor candidates underway, aiming
for establishment during the current fiscal year.

Item

Network,
M&A

Investment
s in partnercompanies

http://www.jaic-vc.co.jp•

Strengthen external networks (inJapan and Asia) and establish a
global support structure.

•

Start initiatives in FA businesscentered around cross-border
M&As.

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

• Cooperation agreements were signed between
China's Xi'an Hi-Tech Industries Development
Zone and local venture capital in Bangkok.
• M&A deals from Asian business partners being
introduced to listed Japanese companies using
our domestic network.
• Project to build a group home for persons withdisabilities started in October 2019.
• We carried out three strategic investment deals:
Morihisa Engineering Co., Ltd. (plant factories)
Social Inclu Co., Ltd. (group homes)
Smart Solar Corporation (mega solar projects)-9-2. Results for 2Q FY Mar 2020 –Progression status of the medium-term business plan – Project oriented investment
Item

Plan

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

Smartagriculture

Healthcare

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

Put the first vegetable factory on track
and invest in subsequent projects.

Focus on profitability instead of quantity
and invest selectively in nursing carefacility development projects.

Progress••

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

• No. 1 plant succeeded in developing sales
channels to large restaurant chains and starteddelivery.
• Negotiation with large convenience store chains
has started through participation in 14th Food
Selection, a food trade show-businessconvention, etc.
• Location for No. 2 plant being determined, aiming
for investment execution within current fiscal year.

Investment in a project decided.
Investment planned to be executed in 2H after
developer works out overall plans for the project.

- 10 -

2. Results for 2Q FY Mar 2020 – Progression status of key performance indicators

Strategy

Expand stable revenue
from project oriented
investment assets

Replacement of private
equity investment assets

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

Key goal indicator

FY2021

Final profit

0.7 billion yen

ROE

9％
KPI
FY Mar. 2020-2Q

KPI
FY Mar. 2021

Balance of project oriented investment
assets

6.7 billion yen

9.0 billion yen

Unrealized gains of project oriented
investment assets (expected cumulative
profits before discounting)

8.3 billion yen

20.0 billion yen

Balance between the sum of cash anddeposits and project oriented investment
assets and borrowings+0.8 billion yen+5.6 billion yen

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

Balance of investment
4.5 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
0.7 billion yen

Balance of investment
1.0 billion yen

Measures- 11 -

3. Business report

Private equity investment

P13

Project oriented investment

P16

http://www.jaic-vc.co.jp- 12 -

3. Business report -Private equity investment – Investment execution case

Investment execution : 6 companies, ¥ 824 million
Smart Solar
Corporation

Social Inclu
Co., LTD.

One of JAIC’s partnercompanies in the filed of mega
solar project oriented
investment

JAIC’s partner company in the
filed of project oriented
investment related to grouphomes for persons withdisabilities

MorihisaEngineering Co., LTD.
JAIC’s partner company in the filed of smart
agriculture related investment.
http://www.jaic-vc.co.jp

Uetani Co., Ltd.
The first investment project of thebusiness succession fundA long-established company
handling commercial facility interiorand custom-made furniture
manufacturing

The Navel
Japan Ltd.
A local trade company in Matsusaka, Mie
prefecture, founded by the Daisan Bank, Ltd.,and others
1 IT-related company- 13 -

3. Business report -Private equity investment – Asia business network

Tianjin [investment fund / 100%subsidiary]
Tianjin Eco-City Investment and Development Co., Ltd.
Qingdao/Shandong Peninsula indigo special economic
zone [partnership]
・ Investment fund of indigo special economic zone
・ Government of Qingdao City

Shenyang[investment fund / 100%subsidiary]
Government of Sheyang Hunnan new
districtYantai [cooperative relationship]
Government of Yantai City
Beijing [advisor]
Xi’an [partnership / advisor]
Xi’an high-tech industry development zone

Hong Kong [partnership]

Shanghai[investment fund / 100%subsidiary]
CyberAgent Ventures, Inc.

First Eastern (Holdings) Limited

 Asia business network,
JAIC's strength, further
strengthened.
 Cooperation agreement
signed with China's Xi'an
Hi-Tech Industries
Development Zone in
September 2019.
 Cooperative deals withmore of China's key
municipal governments
planned.

Bangkok [partnership]
VNET Venture Capital Management
Securities Co., Ltd.

Suzhou[investment fund / 100%subsidiary]Suzhou investment group

Ho Chi Minh City [cooperative relationship]
World Link Japan, Inc.
Singapore/Malaysia/Indonesia[cooperative relationship] Cooperative agreements
signed local venture
capital in Thailand.
 To be used for the launchof M&A business andsupport of investee
companies.

・ BA Partners Pte. Ltd.
・ Lingua Franca Holdings Pte. Ltd.

http://www.jaic-vc.co.jp- 14 -

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

StemRim Inc.

PBsystems, Inc.

Research, development, manufacture and sales ofpharmaceuticals and medical devices that promote
regeneration of damaged tissues by activating andutilizing patient’s own stem cells in the body, andgene therapy products for intractable diseases"Secure Cloud Systems Business" which provides anenterprise's Core Systems as cloud computing systems,and "Emotional Systems Business" which manufacturesand sells VR-theater "4D king“

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

Stock market：FSE Q-Board (4447)
IPO date：12 September 2019

Fangdd Network Group Ltd.
Operator of "房多多", china's largest online real estate marketplace

Stock market： NASDAQ Global (DUO)
IPO date： 1 November 2019http://www.jaic-vc.co.jp- 15 -

3. Business report - Project oriented investment – Investment execution

Investment execution : 6 projects, ¥ 920 million
No.

Location

Project type

Generation capacity

Notes

1

Tochigi

Solar power

2.0MW

New project; FIT ¥32

2

Tochigi

Solar power

2.0MW

New project; FIT ¥32

3

Tochigi

Solar power

2.0MW

New project; FIT ¥36

4

Tokyo

Biogas power

1.6MW

Investment in operator of adjoining
waste processing plants

5

Hyogo

Vegetable factory-

Additional investment of the factory’s
operation funds

6

Kumamoto

Solar power

11.8MW

Additional investment; FIT¥36••

Investments in mega solar projects with a ¥30-level FIT price are under progress.
The vegetable factory is being operated steadily with the aim of full operation by theend of March 2020.

http://www.jaic-vc.co.jp- 16 -

3. Business report - Project oriented investment - Renewable energy projects
as of September 30, 2019

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

12 projects 29.8 MW
12 projects 70.0 MW
24 projects 99.8 MW
56.4MWother than above

Transferred

22 projects

119.7 MW

Other renewable energy projects
Woody biomass; Started electricity sales 1 project 2.0 MW
Bio gas; Started electricity sales 1 project 0.03 MW
Bio gas; Under construction
1 project 1.6 MW
Wind power; Under planning
1 project at most 25.2 MW
Fukuoka, Solar
1 project
2.9MW

Kumamoto, Solar
1 project 3.1MW
1project 11.8MW

Hokkaido, Solar,
1 project 4.4MW
3 projects 20.0MW
Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
4 projects 10.0MW
Miyagi, Solar,
1 project 2.4MW
Fukushima, Solar,
1 project 1.2MW
2 projects 5.1MW

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- 17 -

3. Business report– Project oriented investment – Diversifying projects
Group home for persons with disabilities(Hamamatsu, Shizuoka Prefecture)

Artist's rendition of power plant・Small apartment for persons with disabilities
・Completion scheduled in May 2020

Hamura biogas power plant (Hamura, Tokyo)

Facility operated by the operator

・Uses biogas manufactured by methane
fermentation of organic waste from food factories,etc.
・As waste decreases in mass after gas has been
extracted, a plant can double as intermediate
processing facility for waste.

2017
Bio
2016

gas

Further
Octoberplans
2019・Renewable2018
energyFacility for
Vegetable factoryin Asia
persons・Logistics
withfacilities
disabilities

・Biomass・Elderly
2012
Mega
solar
http://www.jaic-vc.co.jp

facilities

Vegetable factory (Tanbasasayama, Hyogo Prefecture)
・Factory for business-use vegetables, including leaf lettuces and head lettuces
・Sells vegetables to businesses such as restaurant chains.
・Aims to achieve full-capacity operation and turn profit monthly by end of March
2020.
・Annual output of about 200ｔ and annual sales of about 200 million yen
expected under full-capacity operation- 18 -

4. Full-year result forecasts
 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 doesn’t 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 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.
http://www.jaic-vc.co.jp- 19 -

4. Full-year result forecasts
FY Mar 2020
(2Q)
(Actual)Result forcast FY2020 1st Half

Result forcast FY2020(Disclosed on May 15, 2019)(Disclosed on May 15, 2019)

AmountAmount(million yen)(million yen)AmountProgression ratio(million yen)

Progression ratio

Operating revenue

691

600

115.2%

3,500

19.8%

Operating cost

582

290

200.8%

1,600

36.4%

Operating gross profit

108

310

35.2%

1,900

5.7%

SG&A expenses

530

550

96.5%

1,100

48.2%

Operating income

(421)

(240)

-

800

-

Ordinary Income

(483)

(320)

-

650

-

Profit attributable to owners of parent

(481)

(330)

-

500

-








No change in full-year result forecasts.
1H result forecasts was revised down on 31 Oct 2019 and 1H profit resulted in as we revised.
1H profit missed forecast due mainly to delay in sale of unlisted shares until 2H.
Gains on share sale expected to concentrate in 4Q.
Additional IPO by Japanese investee companies believed likely.
We plan to cover potential underperformance of share sale gains with sale of mega solar projects.

http://www.jaic-vc.co.jp- 20 -

5. Appendix

List of renewable energy projects

P22

Break down of private equity investment balance

P24

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

P25

Funds & investment activities

P26

Business results & financial position

P27

Break down of operating revenue & operating cost

P28

Core competence

P29

Profit structure

P30

Company data

P32

http://www.jaic-vc.co.jp- 21 -

5. Appendix – List of renewable energy projects as of September 30, 2019
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

Ichinosekishi Fujisawacho solar power plant

2.3

Started electricity sales in Sep. 201636

approx. 0.73

3Nomaike solar power plant

2.4

Started electricity sales in May. 201736

approx. 0.8

4

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

5Mitakabeike solar power plant

1.5

Started electricity sales in Sep. 201732

approx. 0.5

6Iwate Ichinoseki solar park

2.4

Started electricity sales in Jan. 201836

approx. 0.8

7

Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

8

Nakaoudaike solar power plant

2.4

Started electricity sales in Apr. 201836

approx. 0.86

9

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

10

Higashioudaike solar power plant

2.4

Started electricity sales in Jul. 201836

approx. 0.86

11

Ichinosekishi Suzugasawa solar power plant

2.7

Started electricity sales in Oct.. 2018

36

－

12

Kami solar park

2.4

Started electricity sales in Oct. 201836

approx. 0.96

13

Mombetsu-shi Kodo solar power plant

15.7

Under construction or Under planning40

approx. 6.6

14

Hokkaido

2.0

Under construction or Under planning

36

－

15

Mie

21.8

Under construction or Under planning

24

－

16

Fukushima

2.4

Under construction or Under planning

32

－

17

Fukushima

2.7

Under construction or Under planning

40

－

18

Kumamoto

11.8

Under construction or Under planning

38

－

19

Hokkaido

2.3

Under construction or Under planning

40

－

20

Kanagawa

2.4

Under construction or Under planning

32

－

21

Fukuoka

2.9

Under construction or Under planning

36

－

22

Tochigi

2.0

Under construction or Under planning

36

－

23

Tochigi

2.0

Under construction or Under planning

32

－

24

Tochigi

2.0

Under construction or Under planning

32－

Total 99.8MW [attributable to JAIC 56.4MW]

http://www.jaic-vc.co.jp- 22 -

5. Appendix - List of renewable energy projects as of September 30, 2019
Type of project

No.

Woody biomass
Bio gas1

2

Location

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－

Started operation－

Approx. 0.7

Aomori Touhokumachi solar power plant

Wind power

Mie

Vegetable plant

Tambasasayama-shi, Hyogo

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

Generation Capacity[MW]－- 23 -

5. Appendix - Break down of private equity investment balance

Investment balance : 103 companies, ¥8.3 bn.
【Breakdown by area】
Others; 11co.

0.3bn.
China,HK &Taiwan;38co.

【Breakdown by industry】
Others;11co.
Service;
1.5bn.
Japan; 14co.

QOL;
27co.
3.2bn.

Total
Total 3.6bn.54co. 0.9bn.
103 companies
103 companies Precision¥8.3 bn.
machine;¥8.3bn.
0.7bn.

4.3bn.

7co.

2.0bn.IT;
44co.

Average investment amount per company (unit: ¥ million)：
Japan 67, China, HK & Taiwan 114 / QOL 118, IT 45
http://www.jaic-vc.co.jp- 24 -

5. Appendix – AUM of Funds, Investment balance & balance of operational
investment securities

Investment by fuds
4.5

AUM of Funds¥15.9 bn.

6.8

3.3

1.3

Investment balance¥14.6 bn.

Principal investment
by JAIC 10.2

1.6

Other
investors'
interests in
funds
2.9
Other than consolidated projects
Consolidated projects

Balance of
operational investment securities(Previous Accounting Standard)

4.8 ※

5.3

¥9.6 bn.

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

1.3

JAIC's interests in funds
Others¥13.0 bn.
Balance of
operational investment securities(Fund Consolidated
Accounting Standard)

1.6

Cash etc. in Funds
Accumulated profits, Losses & distributions
5.3

1.6

1.2

1.5

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 investment isoffset by capital.
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.

- 25 -

5. Appendix - Funds & investment activities(JPY million)
New & Increased Funds
AUM of Funds - total

15/3

16/3

17/3

18/3

19/3

-

5,201

500

1,000

2,000

43,89739,33528,753

19,15016,49414,004

9,427

5,867

5,344

AUM of Funds - JAICNew Investnemts (Private Equity)

1,470

1,304

1,131

1,205

136

Balance of Investments (Private Equity)

18,385

15,061

11,981

10,3988,437

New Investnemts (Project oriented investment)

1,257

2,788

3,184

2,681

3,612

Balance of Investments (Project oriented investment)

1,337

3,722

4,576

3,582

5,514

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

20/3(2Q)
600
17,32915,948
5,584
5,131
106
824
8,812
8,260
1,353
920
4,672
6,418

19/3(2Q)- 26 -

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

15/3

16/3

17/3

18/3

19/3

19/3(2Q)

20/3(2Q)

Business Results
Operating Revenues

4,532

4,043

3,926

5,403

2,475

716

Operating Gross Profit

882

1,554

2,176

2,328

1,286

78

SG&A Expenses

1,433

1,472

1,339

1,311

1,109

543

Operating Income

(550)

82

836

1,017

177

(465)

Ordinary Income

(610)

612

726

954

83

(460)

Net Income

(850)

597

553

874

578

(534)

691
108
530
(421)
(483)
(481)

9,437

8,202

6,213

7,308

5,564

4,885

2,825

1,337

3,722

4,081

3,582

5,514

4,672

6,667

-

100

100

373

373

373

745

10,364

8,126

7,256

5,657

4,765

5,074

4,577

20,193

16,91014,128

11,954

9,784

10,288

8,689

Total shareholders' equity

3,373

4,976

5,686

6,545

6,840

5,986

Total assets

24,396

22,68020,305

19,22017,305

16,941

6,507
15,761

Financial Position
Cash and deposits
Operational investment securities 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- 27 -

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

15/3

16/3

17/3

18/3

19/3

20/3(2Q) Change(%)

19/3(2Q)

１． Fund management operation

107
107
107

(16.7%)

107.3%

205

406
155
562
356

579

420

160

(61.7%)

3649

8

618.4%

1,744

3,069

1,182

634

818

1,690

1,827

993

(70)

61
579
(16)

53

13

25

142

57

22

(10.3%)

Operating Cost

9

7

6

5

6

3

Operating Gross Profit

44

5

19

136

51

19

20
2
18

Operating Revenues

4,532

4,043

3,926

5,403

2,475

716

(3.5%)

Operating Cost

3,650

2,488

1,750

3,074

1,188

638

882

1,554

2,176

2,328

1,286

78

691
582
108

Fund management fees and others

571

441

364

277

241

129

Success Fees

63

288

101

86

-

-

Operating Revenue

634

729

466

364

241

129

-

-

-

-

-

-

634

729

466

364

241

129

3,651

2,954

2,275

3,219

1,746

196

193

345

1,159

1,677

429

367

3,844

3,300

3,434

4,897

2,176

563

1,767

1,863

1,423

2,469

554

1,704

569

274

562

168

47

46

3,640

2,481

203

Operating Revenue

Operating Cost
Operating Gross Profit(16.7%)(16.7%)

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(57.6%)(0.2%)
73.9%(8.6%)-

３． Others(30.4%)(6.5%)

Total

Operating Gross Profit

http://www.jaic-vc.co.jp(8.7%)
39.2%- 28 -

5. Appendix – Core competence
Historical background in Asian region

Capability 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.
- 29 -

5. 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- 30 -

5. 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- 31 -

5. Appendix - Company data (as of September 30, 2019)
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

39 (Consolidated) /21 (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

- 32 -

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- 33 -