Financial Results Overview
for the 2nd Quarter Ended
September 30, 2018
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: November 12, 2018
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-1-

Contents

1 SummaryP3

2 Results for 2Q FY Mar 2019 (Previous accounting standard)

P4

3 Result forecast for FY Mar 2019 (Previous accounting standard)

P9

4 Business Report

P11

5 Appendix

P22

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1. Summary

9 Results for 2Q FY March 2019 (Previous accounting standard)• Revenues decreased by 71.9% year on year; final deficit ended at 0.5 billion yen.
• The decrease in revenues for 2Q FY March 2019 was a reaction to the sale of alarge project in 2Q FY March 2018.
• Write-offs and provision for allowance increased due to the drop in the expected
recovery amount of overseas investments
9 Result forecast FY Mar 2019 (Previous accounting standard)• No change from start of term; 2Q results were as planned.
• Gain on sale concentrating in 4Q• The pillar of profits is expected to be gain on sales from IPOs in Japan and sales ofoverseas unlisted shares.
9 Business report• VALUENEX Japan Inc. achieved IPO on Oct. 30, 2018.
• On Oct. 31 The business succession-type buyout fund achieved a total fund amountof 3 billion yen. The fund had been solicitating for subscription and accepted
additional investment. Solicitation activities ended successfully.
• Electricity sales commencement projects from Apr. to Oct. ; 5 projects; 12.5MW
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2. Results for 2Q FY March 2019 (Previous accounting standard)

Business Result
Outline of results

P5

Break down of operating revenue & operating costP8

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2. Results for 2Q FY March 2019 – Outline of results (Previous accounting standard)
FY 2019 2Q(Actual)FY 2018 2Q(Actual)AmountComposition
AmountComposition(million yen)ratio
(million yen)ratio
Operating revenue

Result forcast
FY2019AmountProgression(million yen)ratio

Change2,547

100.0%

716

100.0%(71.9%)

3,450

20.8%

1,227
1,319

48.2%
51.8%

638
78

89.1%
10.9%

(48.0%)(94.1%)

1,650
1,800

38.7%
4.4%

SG&A expenses

605

23.8%

543

75.8%

(10.2%)

1,100

49.4%

Operating income

714

28.0%

(465)

(64.9%)-

700-

Profit attributable to owners of parent

640
493

25.1%
19.4%

(460)
(534)

(64.3%)(74.6%)

-

550
470

-

Stable revenues (*)

227

-

228

-

-

330

69.2%

37.5%

-

42.0%

-

-

30.0%

-

Operating cost
Operating gross profit

Ordinary Income

Percentage of stable revenues to SG&A

9 Year on year: 71.9% drop in revenues; final deficit of ¥0.5 billion; the drop was a reaction
to the sale of four projects worth 36.0 MW, including a large project, in 2Q FY March 2018.
9 Versus full-year forecast: Operating revenue 20.8%; final profit -¥1 billion; results were asplanned; expected to achieve forecasts through gain on sale of equity in 4Q.
9 Stable revenues: Maintained the previous year’s level as proceeds from mega solar
projects compensated for the cost of projects under construction.
(*) Stable revenues: Management fees ＋ project oriented revenues except project oriented investment capital gain and subsidy income ＋ PE investment
income gain.
http://www.jaic-vc.co.jp-5-2. Results for 2Q FY March 2019 – Outline of results (Previous accounting standard)
FY 2019 2Q(Actual)FY Mar 2018
(Actual)AmountComposition
AmountComposition(million yen)ratio
(million yen)ratio
Total assets

Change19,220100.0%

16,941100.0%(11.9%)

7,308

38.0%

4,885

28.8%

(33.2%)

3,582

18.6%

4,672

27.6%

30.4%

6,030

31.4%

5,447

32.2%

(9.7%)（c） Loans payable

11,95462.2%

10,28860.7%(13.9%)

Total shareholders' equity

6,545

34.1%

5,986

35.3%

(8.5%)(a) + (b) - （c）(1,063)

-

(730)

-

-

(a) Cash and deposits(b) Operational investment securities(Renewable energy projects) etc.
Operational investment securities after
deducting Allowance for possible

9 Project oriented investment assets increased due to progress of investment execution
9 Outstanding loans payable were ¥10.2 bn. 78％ was reduced from the peak (incl. bonds).
9 The balance between the total amount of cash and deposits and renewable energy projects andoutstanding borrowings improved from -¥1.0 bn. on March 31, 2018 to -¥0.7 bn. on September 30.
http://www.jaic-vc.co.jp-6-

2. Results for 2Q FY March 2019 –Cash Flows – (Previous accounting standard)(JPY million)

Operating CF
Investing CF
Financing CF
Change in Net CF
Cash & Cash Equivalents
at End of Period

18/3
1,870
238
(2,173)(57)
4,757

18/3(2Q) 19/3(2Q)
(519)
458
196
65
(1,659)(1,668)(1,989)(1,158)
2,825

3,599

9 Operating CF: Net cash provided was ¥0.46 bn. due to the receipt of distributions
from funds and tax refunds, despite the booking of losses
9 Financing CF: Net cash used was ¥16.7 bn. due to repayment of borrowings

http://www.jaic-vc.co.jp-7-

2. Results for 2Q FY March 2019 –Break down of operating revenue & operating cost (Previous accounting standard)
Total
FY 2018(2Q)
FY 2019(2Q)(Actual)(Actual)（JPY million）

Private equity investment
FY 2018(2Q)
FY 2019(2Q)(Actual)(Actual)
424

894

716
129
196
357
9
22
638
205

317

Fund interests losses etc.

13

Other operating costs

Operating revenue

2,123

75

582
128
172
261
9
9
621
188

818

133
0
23
95
0
13
16
16

420

317

420

-

-

12
2

8
3

0

2

8
3

-

-

1,319

78

15

(39)

1,303

117

2,547

Fund management fees and others

134

Success Fees

50

Proceeds of sales of securities

1,053

Fund interests income etc.

1,261

Income gains

31

Other operating reveue

14

Operating Cost

1,227
Cost of securities soldInvestment write-offs and Provision for allowancefor possible investment losses

Operating Gross Profit

Project oriented investment
FY 2018(2Q)
FY 2019(2Q)(Actual)(Actual)

133
50
223
0
11
4
408

1
830
1,260
20
10
819

9 In private equity investment, investment write-offs increased, while interests income fromfunds operated by other companies, leading to an operating gross loss.
9 In project oriented investment, fund interests income decreased as a reaction to the saleof projects and subsidy income in 2Q FY March 2018.
http://www.jaic-vc.co.jp-8-

3. Result forecast for FY Mar 2019 (Previous accounting standard)

Result forecast for FY Mar 2019 (Previous accounting standard) P10

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3. Result forecast for FY Mar 2019 (Previous accounting standard)
Difference in results and the outlook
Previous accounting standard

Result forcast FY2019
Amount(million yen)

Operating revenue
Fund management operation
Proceeds of sales of securities (private eqity)
Proceeds of sales of securities (project)
Fund interests income etc. (private eqity)
Fund interests income etc. (project)
OthersOperating cost
Cost of securities sold (private equity)
Cost of securities sold (project)
Investment write-offs & provision for allowance for possible investment losses

OthersOperating gross profit
SG&A expenses
Operating income
Ordinary Income
Profit attributable to owners of parent

99Actual 2019/3(2Q)
Amount(million yen)

Progression
ratio

3,450

716

20.8%

240
2,800
400
10

129
172
23
261
95
32

53.9%
6.2%
24.0%
329.2%

1,650

638

38.7%

1,300
350
-

192
13
420
12

14.8%
120.2%
-

1,800
1,100
700
550
470

78
543
(465)
(460)
(534)

4.4%
49.4%
-

・Proceeds of private equity sales and costof private equity securities sold consist
mainly of IPOs in Japan and sales ofoverseas unlisted shares, which is
expected to be concentrated in 4Q.
・Investment write-offs exceeded theforecast as of the start of term.
・Interests income from private equity
funds operated by other companies, which
was not forecast at the start of term, wasgenerated in the fund interests income, etc.
of operating revenue. This will supplement
the excessive investment write-offs.
・The sale of renewable energy projects
and income from mega solar projects are
expected in fund interests income, etc.

No change from start of term; results were as planned.
Gains on sale of shares are expected to be concentrated in 4Q.

The result forecast 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.
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4. Business report

Private equity investment

P12

Project oriented investment

P17

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4. Business report- Private equity investment – investment funds (as of the end of Oct. 2018)

Business succession fund reached a total of ¥3 bn.
as of the final closing～Established with the aim of contributing to regional revitalization and providing
solutions to the business succession challenges facing SMEs in Japan～
Name

Succession Investment Limited Partnership, Ⅰ

Fund managementcompany

AJ Capital Co., Ltd.
* A 50:50 joint venture by JIAC and Aozora Bank, Ltd.

Investors

AJ Capital, Aozora Bank, Ehime Bank,
Financial Products Group, Kirayaka Bank, Towa Bank,
Tottori Bank, Bank of Toyama, Hokuto Bank,
Miyazaki Taiyo Bank, Japan Post Bank, JAIC, as well as otherfinancial institutions

Total commitment amount¥ 3 billion ( as of Oct 2018)

Main investment target

SMEs in Japan with business succession challenges

Date of establishment

June 26, 2017

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4. Business report - Private equity investment – investment funds

Two funds currently being planned
Theme

Assist globalization of small and medium-sized companies
across Japan(Support overseas business expansion and assist growthby capturing inbound demand)

Expected investors

Regional financial institutions

Expected
establishment date

After March 2019

Theme

Assist the growth of Japan’s medium-sized manufacturers
in cooperation with overseas investors

Expected investors

Chinese institutional investors

Expected
establishment date

After March 2019http://www.jaic-vc.co.jp- 13 -

4. Business report - Private equity investment – IPO

VALUENEX Japan Inc.
Listed on TSE Mothers on Oct. 30, 2018
Business：
Providing ASP licensing services for big data analytics ofpatents (TechRadar) and documents (DocRadar), andoffering consulting services utilizing these tools and uniquemethodologies

Enterprise value based on first price：11.8 billion yen

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4. Business report - Private equity investment

Investment execution : 2 companies, ¥0.1 bn.
JAIC Venture Capital Investment L. P.
（Secondary investment fund for venture companies）

Shenyang Wanrun-JAIC Venture Capital Enterprise（Targeting promising companies in Shenyang City）

瀋陽中元宜和生物科技有限公司

LIGUA, Inc.
Top-class share in solution services fororthopedic and osteopathic clinics••

Provides enhancement of patient information management
through system introduction, introduction of own expense
menu using treatment devices such as EMS, personnel
training support, and accounting support
Capital (incl. capital reserve): ¥280 million; employees: 81

Start-up firm that develops and manufactures
artificial insemination medical device for medical
institutions••

Obtained approval from China Food and Drug Administration(CFDA) on domestic manufacture and sale of egg cell collectors,
embryo transplant conduits, and artificial fertilization tubes
Established April 2011; capital: 6.7 million yuan

Embryotransplant
conduitEgg cellcollector
Patient information
management system”LigooPOS&CRM”
http://www.jaic-vc.co.jp

Electric treatment device“EMS-indepth-”

Artificial
fertilization tube

- 15 -

4. Business report - Private equity investment

Investment balance : 116 companies, ¥8.8 bn.
【Breakdown by area】【Breakdown by industry】

OthersOthers;; 12co.

0.3bn.

China,HK &Total

Taiwan;116 companies

41co.

4.6bn.

29co.

14co.1.2bn.

3.5bn.

Japan;

63co. Precision¥8.8 bn. 3.9bn.

QOL;

13co.
Service; 1.2bn.

machine;
6co.

Total

116 companies
0.5bn.

¥8.8 bn.
2.4bn. IT;
54co.

Average investment amount per company (unit: ¥ million)：
Japan 62, China, HK & Taiwan 113 / QOL 122, IT 44
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4. Business report - Project oriented investment (as of Sep. 2018)

Investment execution : 5 projects, ¥1.35 bn.
Location

Energy source

Generation
capacity

Notes

Mie

Wind

16.0MW

Additional investment
in an existing project

Hokkaido

Solar

2.0MW

New project

Gifu

Solar

20.0MW

New project(short-term recovery
planned)

AomoriBio gas0.03MW

New project

Iwate

Solar

2.7MW

Additional investment
in an existing project

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4. Business report - Project oriented investment Renewable energy projects as of Sep. 30, 2018

Mega solar projects

Started electricity sales
Under construction or under planning
Total
attributable to JAIC
other than above

Transferred

12 projects
7 projects
19 projects

29.3 MW
52.0 MW
81.3 MW41.8 MW19 projects 112.7 MW

Other renewable energy projects

Woody biomass; Started electricity sales 1 project 2.0 MW
Bio gas; Under construction
2 projects 1.6 MW
Wind power; Under planning
1 project 16.0 MW

Kumamoto, Solar
1 project 3.1MW

Kagawa, Solar
4 projects 8.7MW

Aichi, Solar,
1 project 2.3MW

Mie,
Woody biomass, 1 project 2.0MW
Mega solar,
2 projects 26.8MW
Wind power,
1 project 16.0MW

Hokkaido, Solar,
1 project 4.4MW
2projects 17.7MW

Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
3 projects 7.3MW
1 project 2.7MW**
Miyagi, Solar,
1 project 2.4MW**
Fukushima, Solar,
1 project 1.2MW
1 project 2.4MW
Ibaragi, Solar,
1 project 2.3MW** Started
electricity
sales in Oct
2018.

Tokyo, Bio gas,
1project 1.6MW* 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.
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4. Business report - Project oriented investment - total project amount
Expected total amount of projects
planned to be long held(*1)(*1) The sum of the expected amounts to be longheld (incl. those are managed by another firm), in
which investment is carried out as of September
2018.
The breakdown of funds procured is the forecast
amount upon completion of the projects.

Total amount of projects¥32.5 bn.
[100％]

99
9Nonrecourse loan
¥26.1 bn.
[80.5％]
Invested by others¥3.4 bn.[10.5％]

Nonrecourse loan
Total amount of projects(*2) Off-balance
portion not bookedin the BS of theprevious accounting
standards
Invested by
JAIC ¥3.0
bn.[9.0％]¥77.0 bn.
[100％]*2¥62.0 bn.
[80.5％]

Invested by others¥8.0 bn.[10.5％]
Invested by JAIC
¥7.0 bn.[9.0％]

The expected total amount of project to be long held as of September 2018 is ¥32.5 billion.
Based on the previous accounting standards, other than ¥3.0 billion “invested by JAIC” (9.0%) of the total amount ofprojects are off-balance*2.
In the medium-term management plan,*3 JAIC aims to increase investment by JAIC to ¥7 billion by end of March 2021.
Assuming that the same percentage of funding will be carried out in projects invested in the future as in existing
projects to be long held, the total amount of projects that correspond to JAIC’s investment of ¥7 billion will increase to¥77.0 billion.

(*3) Medium-term business plan for March 2019 through March 2021. The medium-term business plan and the contents of this document are based on materials available atthe time of its compilation and no guarantee can be made as to the continued accuracy and reliability of the material. Various factors could cause actual results to differ
materially.
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4. Business report - Project oriented investment – Estimated cumulative revenue

Estimation of cumulative revenue from electricity sales from projects
to be long held as of September 2018
Expected cumulative
revenue for 20 years

Amount ofinvestment
by JAIC

Under certain hypotheses
when assuming that theseprojects will continue to beheld;¥ 3 bn.
The forecast
amount uponcompletion of all
projects.

¥ 10 bn.
Expected cumulative
revenue* based onelectricity sales fromthe start of electricity
sales until the end of
the FIT period(approx. 20 years)* Revenues from electricity sales minus depreciation, interest expenses, etc.
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4. Business report – Project oriented investment- Renewable energy projects – case study 1

Aquatic power plant in Nakaoudaike and Higashioudaike, Sanuki,
Kagawa Prefecture started electricity sales

Nakaoudaike solar power plant

Higashioudaike solar power plant

Started electricity sales in Apr. 2018

Started electricity sales in July. 2018

Maximum output

Maximum output：approx. 2.4MW*Solar cell panel system capacity basis

Feed-in tariff : 36/kWh [ex. Tax]999：approx. 2.4MW*Solar cell panel system capacity basis

Feed-in tariff : 36/kWh [ex. Tax]

By constructing the power plant on water, costs for reclamation work to flatten the ground for panel installation will
become unnecessary
Solar radiation conditions are good since there are no obstacles around
The temperature of the panels are kept low due to the cooling effect of the water‘s surface, enabling the power
plant to maintain power generation efficiency

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4. Business report – Project oriented investment- Renewable energy projects – case study 2

Mega solar sharing power plant
Ichinoseki-shi Yoshitaka solar power plant
Maximum output: approx. 2.6MW*Solar cell panel system capacity basis

Started electricity sales in June 2018
Ichinoseki-shi Suzugasawa solar power plant
Maximum output: approx. 2.6MW*Solar cell panel system capacity basis

Started electricity sales in October 2018
Ichinoseki-shi Yoshitaka solar power plant

Joint investment with Renewable Japan Co., Ltd. and TOKYU LAND CORPORATION
Project finance from The Tohoku Bank, Ltd. and EPC by Mitsubishi Electric System & Service Co., Ltd.
Sharing sunlight between power generation and agriculture
Posts are planted on farmland and panels are installed at certain intervals, under the panels barley isgrown using large agricultural machines
9 Part of the income of the power generation business will be paid as farming support costs over twenty
years to contribute to regional re-creation

9
9
9
9

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4. Business report – Project oriented investment– Investment in a vegetable plant

October 2018 Invested in
JAIC’s first vegetable plant project～ Investment in a pilot project ～Scheduledconstruction site

Hyogo prefecture

Site area

Approx. 820 ㎡

Plant type

Completely closed

Planned crops

Frilled lettuce, etc.

Start of construction

October 2018

Scheduled fulloperation

After April 2019

Note: The photo is a simulated image.

9

In cooperation with a venture firm with experience in the construction and operation ofvegetable plants

9

The venture firm will be in charge of the operation while JAIC will invest part of theconstruction and operation costs.

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5. Appendix

AUM of Funds

P25

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

P26

Funds & investment activities

P27

Business results & financial position （Previous accounting standards)

P28

Statement of Income – break down (Previous accounting standard)

P29

Break down of investment income (Previous accounting standard)

P30

Updates on investee companies

P31

List of renewable energy projects

P32Core competence

P34

Profit structure

P35

Company data

P37

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5. Appendix – AUM of Funds
New & increased

AUM of funds

funds

New & Increased Funds

JPY million

10,0005,000

AUM of Funds - total

JPY million

100,000

85,873

5,201

50,0004,548
19,150500

1,000

17,329
600
0

0
13/3

9
9

14/3

15/3

16/3

17/3

18/3

19/3(2Q)

Obtained investment of ¥600 million through additional solicitation forsubscription to business succession-type buyout fund
AUM decreased, affected by funds that decreased its AUM and handed overmanagement to another firm

http://www.jaic-vc.co.jp- 25 -

5. Appendix – AUM of Funds, Investment balance & balance of operational
investment securities
Investment by fuds
5.3

AUM of Funds¥17.3 bn.

Investment balance¥13.4 bn.

Principal investment
by JAIC 8.2

2.2

1.2

8.4

2.5

Other
investors'
interests in
funds
3.0
Other than consolidated anonymous partnership

Balance of
operational investment securities

5.6

2.6 ※

Consolidated anonymous partnership
2.2(Previous Accounting Standard)

OthersBalance of(Fund Consolidated
Accounting Standard)

JAIC's interests in funds
Other investors' interests in consolidated funds¥11.0 bn.
operational investment securities

0.6

Cash etc. in Funds
5.6

2.2

1.4 0.4

Accumulated profits, Losses & distributions
Uncalled commitments to Funds¥9.6 bn.
Note:
Of the principal investment by JAIC, the investment portion inanonymous partnership, which is subject to consolidation, isdeemed investment in a subsidiary under the fund consolidated
accounting standards, and investment is offset by capital.
On the other hand, renewable energy power generation facilities
held by anonymous partnerships are booked as property, plantand equipment under the fund consolidated accounting standard.

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5. Appendix - Funds & investment activities(JPY million)

13/3

14/3

15/3

16/3

17/3

18/3

19/3(2Q)

New & Increased Funds

4,548

-

-

5,201

500

1,000

600

AUM of Funds - total

85,87350,88843,89739,33528,753

19,15017,32914,004

9,427

5,867

5,584

AUM of Funds - JAICNew Investnemts

4,746

4,189

2,728

4,093

4,315

3,887

1,459

Balance of Investments

33,88625,862

19,722

18,783

16,55813,981

13,485

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

13/3

14/3

15/3

16/3

17/3

18/3

19/3(2Q)

Business Results
Operating Revenues

3,784

6,155

4,532

4,043

3,926

5,403

716

Operating Gross Profit

176

2,474

882

1,554

2,176

2,328

78

SG&A Expenses

2,000

1,621

1,433

1,472

1,339

1,311

543

Operating Income(1,823)

852

(550)

82

836

1,017

(465)

Ordinary Income(2,612)

374

(610)

612

726

954

(460)

Net Income(2,575)

462

(850)

597

553

874

(534)

8,550

10,428

9,437

8,202

6,213

7,308

4,885

Financial Position
Cash and deposits
Operational investment securities of project related
investment
Operational investment securities after deducting
allowance for possible investment loss (Private equity)
Loans payable, bonds & bonds with subscription rights
to shares

-

608

1,337

3,722

4,081

3,582

4,672

15,452

12,38010,364

8,226

7,356

6,030

5,447

25,43324,01020,193

16,91014,128

11,954

10,288

Total shareholders' equity

1,565

2,573

3,373

4,976

5,686

6,545

5,986

Total assets

28,272

27,302

24,396

22,68020,305

19,22016,941

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

13/3

14/3

15/3

16/3

17/3

18/3

18/3(2Q)

19/3(2Q)

Change(%)

１． Fund management operation
Fund management fees and others
Success Fees

Operating Revenue
Operating Cost
Operating Gross Profit
２． Investment operation

Proceeds of sales of securities (A)Fund interests income etc.
Income gains

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
３． Others
Operating Revenue
Operating Cost
Operating Gross Profit

Total
Operating Revenues
Operating Cost
Operating Gross Profit

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

815
37

733
132

571
63

441
288

364
101

277
86

134
50

129
-

(4.0%)
-

852
852

865
865

634
634

729
729

466
466

364
364

185
185

129
129

(30.3%)(30.3%)

2,411

4,656

3,651

2,954

2,275

3,219

1,053

196

(81.4%)

194
95

357
121

100
93

295
49

1,128
30

1,612
64

1,261
31

357
9

(71.6%)(68.6%)

2,701

5,134

3,844

3,300

3,434

4,897

2,346

563

(76.0%)

1,385

2,133

1,767

1,863

1,423

2,469

894

205

(77.1%)

2,038

1,480

1,704

569

274

562

317

420

32.7%

158

52

168

47

46

36

13

8

(37.2%)

3,582
(880)

3,666
1,468

3,640
203

2,481
818

1,744
1,690

3,069
1,827

1,225
1,121

634
(70)

(48.2%)
-

229
25
204

154
15
139

53
9
44

13
7
5

25
6
19

142
5
136

14
2
11

22
3
19

57.6%
28.7%
64.5%

3,784
3,607
176

6,155
3,681
2,474

4,532
3,650
882

4,043
2,488
1,554

3,926
1,750
2,176

5,403
3,074
2,328

2,547
1,227
1,319

716
638
78

(71.9%)(48.0%)(94.1%)- 29 -

5. Appendix - Break down of investment income (Previous accounting standard)(JPY million)

2018/3 (2Q)
(A) Proceeds of sales of securities

Domestic
Domestic
Overseas
listed stock unlisted stock unlisted stock

Total
1,053

149

870

34

(B) Cost of securities sold

894

51

826

16

(A)-(B) Realized capital gains( C) Investment write-offs and Provision for allowance for possible investment losses(A)-(B)-( C) Invstment income

159
317
(157)

97
97

44
276
(232)

17
40
(22)

2019/3 (2Q)

Domestic
Domestic
Overseas
listed stock unlisted stock unlisted stock

Total(A) Proceeds of sales of securities

196

19

88

89

(B) Cost of securities sold(A)-(B) Realized capital gains( C) Investment write-offs and Provision for allowance for possible investment losses(A)-(B)-( C) Invstment income

205
(8)
420
(429)

9
9
9

71
16
24
(8)

124
(35)
395
(431)

9 Decrease in sale of domestic listed shares >>> Decrease in proceeds of sales and realized capitalgains
9 Domestic unlisted shares >>> Large amount of both proceeds of sales of securities and cost of
securities sold in 2Q FY March 2018 due to transfer of interest in investment in a project. They
decreased in 2Q FY March 2019 since there were only sales of shares.
9 Drop in expected amount of sales of overseas unlisted shares >>> Increase in write-offs andprovision for allowance
http://www.jaic-vc.co.jp- 30 -

5. Appendix – Updates on investee companies

TMS Co., Ltd.

mtes Neural Networks Co., Ltd.

Development of treatment for acute-stage
cerebral infarction patients

IoT platform using LoRa

• Aims to extend the time limit from onset to treatment
from 4–5 hours for existing drugs to 12 hours.
• In June 2018, TMS concluded an option contract with
Biogen, an U.S. major bio pharmaceuticals firm.
• TMS earned approx. ¥0.4 billion of lump-sum payment
from this contract.
• Approx. ¥1.8 billion will be paid to TMS when Biogen
exercises its option in the future.
• TMS can also receive up to approx. ¥33.5 billion of
lump-sum payment depending on the the development
and sales situations and royalties in stages dependingon sales.
• Established February 2005; capital: ¥99 million
http://www.jaic-vc.co.jp• An IoT platform business and health monitoring businesscovering energy, human, and structures, using LoRa, awifi communication system that covers a broad range
with few electric power.
• In June 2018, a capital increase by third-party allotment
by TOPPAN FORMS CO., LTD. was decided. mtes will
be an affiliate of Toppan Forms after the capital increase.
• The procured funds will be allocated to the establishmentof an IoT platform, the development of an AI robot center,and the employment of personnel specializing in AI.
• A capital partnership was formed with TOPPAN FORMS
in October 2017. The relationship will further deepen due
to this capital increase, with mtes accepting one officer.
• Established March 2015; capital: ¥715 million- 31 -

5. Appendix – List of renewable energy projects as of September 30, 2018
EnergySourceSolar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]Total amountof project[¥ bn.]

1

Nishiki-cho, Kuma-gun, Kumamoto

3.1

Started electricity sales in Dec. 201540

approx. 1.05

2

Aichi Tokoname A solar park

2.3

Started electricity sales in Aug. 201636

approx. 0.78

3

Ichinosekishi Fujisawacho solar power plant

2.3

Started electricity sales in Sep. 201636

approx. 0.73

4Solar park Tsukubamirai

2.3

Started electricity sales in Mar. 201736

approx. 0.85

5Nomaike solar power plant

2.4

Started electricity sales in May. 201736

approx. 0.8

6

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

7

Mitakabeike solar power plant

1.5

Started electricity sales in Sep. 201732

approx. 0.5

8Iwate Ichinoseki solar park

2.4

Started electricity sales in Jan. 201836

approx. 0.8

9Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

10

Nakaoudaike solar power plant

2.4

Started electricity sales in Apr. 201836

approx. 0.86

11

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

12

Higashioudaike solar power plant

2.4

Started electricity sales in Jul. 2018

36

－

13

Ichinosekishi Suzugasawa solar power plant

2.7

Under construction or Under planning(※Started electricity sales in Oct.. 2018)

36

－

14

Miyagi

2.4

Under construction or Under planning(※Started electricity sales in Oct. 2018)

36

－

15

Mie

2.4

Under construction or Under planning

32

－

16

Mombetsu-shi Kodo solar power plant

15.7

Under construction or Under planning40

approx. 6.6

17

Hokkaido

2.0

Under construction or Under planning

36

－

18

Mie

24.4

Under construction or Under planning

24

－

19

Fukushima

2.4

Under construction or Under planning

32－

Total 81.3MW [attributable to JAIC 41.8MW]

http://www.jaic-vc.co.jp- 32 -

5. Appendix - List of renewable energy projects as of September 30, 2018
EnergySourceNo.

Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]Total amount ofproject [¥ bn.]

Solar

Gifu

20.0

Under construction or Under planning(short-term recovery planned)

40

－

Woody
biomass

Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018－－

Bio gasHamura-shi, Tokyo

1.6

Under construction or Under planning

39－

Aomori

0.03

Under construction or Under planning

39

－

Mie

16.0

Under construction or Under planning

22－

Wind power

http://www.jaic-vc.co.jp- 33 -

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.
- 34 -

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- 35 -

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- 36 -

5. Appendix - Company data (as of September 30, 2018)
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)

Abbreviation; JAIC

Number of employees 41 (Consolidated) /24 (Non-consolidated)
Main business・Private equity investment
・Project oriented investment

Directors

Chairman [Outside] Yoshiaki Kawamata ; Chairman of the Board
President & CEO

Tetsuro Shimomura

Managing Director

Kazunori Omori; Chairman of Audit & Supervisory Committee

Director [Outside/Independent] Hitoshi Yasukawa; Member of Audit & Supervisory Committee
Director [Outside/Independent] Tadashi Nunami; Member of Audit & Supervisory Committee
http://www.jaic-vc.co.jp- 37 -

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- 38 -