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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February 14, 2020

Japan Asia Investment Co., Ltd. (JAIC)Tokyo Stock Exchange Section 1 (Stock code: 8518)
Tetsuro Shimomura, President and CEO
Kenji Kishimoto, Executive Officer+81-3-3259-8518

Notice of Revision to “Result Forecast Consolidated Under thePrevious Accounting Standard”
Japan Asia Investment Co., Ltd. (JAIC) hereby announces that, based on the recent
business performance etc., JAIC has revised its “result forecast consolidated under thePrevious Accounting Standard” for the fiscal year ended March 31, 2020 (from April 1,
2019 to March 31, 2020), previously announced on May 15, 2019.
The “result forecast consolidated under the Previous Accounting Standard” is based
upon the information currently available to JAIC and certain assumptions. Various factors
could cause actual results to differ materially from this result forecasts.

1. Revision to the “ result forecast consolidated under the Previous AccountingStandard”
For the fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)

Previous forecast（A）
Revised forecast（B）
Change（B-A）
Percentage Change(％)

Consolidated

Consolidated

Consolidated

ProfitConsolidated

operatingoperatingrevenueincomeordinary

attributablenet income

incometo owners ofper share（Millions ofparent（Note 1）

（Millions of（Millions of（Millions of（Yen）

yen）yen）yen）yen）

3,500
2,600(900)(25.7%)

800
70(730)(91.3%)

2,475

177

650(60)
(710)
－

500
100(400)(80.0%)

28.24
5.65

83578

32.67

（Reference）
Consolidated financial
results under thePrevious AccountingStandards for the fiscal
year ended March 31,
2019
Note 1: Net income per share in above chart is calculated based on the number of shares issued andoutstanding excluding the number of shares of treasury stock as at December 31, 2019.

1

2．Reasons for revision
In the previous result forecast, profits are expected to be concentrated in the fourth
quarter mainly due to gains on sale of shares resulting from the initial public offering (IPOs)
of investee companies in Japan and China. However, in addition to the postponement of theIPOs of the investee companies, the stock prices of the newly listed investee companies at
the time of sale of shares are expected to be lower than initially anticipated. In addition, inthe case of the sale of unlisted shares, there were cases where the sale negotiations that
had been in progress were not concluded or where the terms of the sale worsened. As aresult, the sales of shares and the gains on sale of shares expected in the fourth quarter areforecasted to decline.
In anticipation of a certain decline in gains on sale of shares from the beginning of thecurrent fiscal year, JAIC had planned to sell off its mega solar projects in such a case in order
to cover the decline in gains on sale of shares. Based on this, we expect to sell six mega
solar projects by the end of March 2020. The revised result forecast reflect the sale of theprojects amounting to 1,350 million yen and gains from the sale of the projects amounting
to 960 million yen.
However, the recent decline in gains on sale of shares is expected to significantly exceed
the scope of our initial forecast. Therefore, to achieve the result forecast, with just the gains
from the sale of the mega solar projects described above, the net sale amount is expected
to be 1,000 million yen and the gains from the sale will be 850 million yen short.
Furthermore, the time required for the due diligence of the sale of the mega solar projects
has been longer than we had anticipated and the procedures will likely take a long period oftime. As a result, with only one and a half months to the end of the current fiscal year underreview, it is extremely difficult for us to make up for the decline in gains on sale of sharesby selling additional mega solar projects.
As an alternative measure, JAIC has made every effort to proceed with negotiations forthe sale of shares in other investee companies, shares in affiliated companies andinvestment securities. Despite such effort, it is unlikely for us to be able to make up for all
the decline, and thus we have regrettably decided to revise downward our results forecast.
As a result, operating revenue is expected to decrease by 25.7% from the previousforecast. In line with the decrease in operating revenue, operating income is expected todecrease by 91.3% to 70 million yen, and ordinary income is expected to decrease by 710
million yen to ordinary loss of 60 million yen.
In addition, profit attributable to owners of parent is expected to decrease by 80.0% to
100 million yen, as the recording of extraordinary income and a decline in tax expenses areanticipated, despite a drop in profit due to a decline in operating revenue.
The “result forecast consolidated under the Previous Accounting Standard” is based upon
the information currently available to JAIC and certain assumptions. Various factors could
cause actual results to differ materially from this result forecasts.
3. “Result Forecast Consolidated Under the Previous Accounting Standard”
The private equity investment business conducted by the JAIC Group is significantlyaffected by changing factors such as stock markets, given the characteristics of the business.
2In addition, 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.

（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