This document has been translated from a part of the Japaneseoriginal for reference purposes only. In the event of any
discrepancy between this translated document and theJapanese original, the original shall prevail. JAIC assumes noresponsibility for this translation or for direct, indirect or any
other forms of damages arising from the translation.

Qualitative Information on Consolidated Operating
Results for the year Ended March 31, 2023
(1) Outline of consolidated operating results
The consolidated operating results of the JAIC Group forthe current

fiscal year under review (from April 1, 2022 to March 31, 2023) recorded
operating revenue of 3,872 million yen (up 20.9% year-on-year),
operating gross profit of 1,419 million yen (up 15.1% year-on-year),
operating profit of 11 million yen (compared to operating loss of 237
million yen for the previous fiscal year), ordinary loss of 126 million yen(compared to ordinary loss of 412 million yen for the previous fiscal year)
and loss attributable to owners of parent of 295 million yen (comparedto profit attributable to owners of parent of 19 million yen for thetheprevious fiscal year). The breakdown of operating results are as follows.
(a) Breakdown of operating revenue and operating cost
(Fund management fees)
Fundmanagement

feesetc.

consistofmanagement

fees

andadministrative fees from investment funds. Fund management fees etc.
were 113 million yen (down 3.1% year-on-year), about the same as yearon-year. Both fees decreased, those the management fees from funds inliquidation process and administrative fees.
(Investment income)The proceeds of sale of operational investment securities increased to2,071 million yen (up 19.6% year-on-year). Realized capital gain, which iscalculated by deducting cost of securities sold from proceeds of sales ofoperational investment securities, decreased to 754 million yen (down10.7% year-on-year) due to capital loss of some operational investment
1 / 10securities. The total amount of investment write-offs and provision forallowance for possible investment losses increased to 316 million yen (up97.9% year-on-year). Compared to the previous fiscal year, JAIC posted
provisions for investee companies which were relatively large investment
amounts. As a result, investment income, which is calculated by deducting
investment write-offs and provision for allowance for possible investment
losses from realized capital gains, decreased to 437 million yen (down36.1% year-on-year).
As for project-oriented investment, for the previous fiscal year, JAIC had
sold one mega solar project and had partially sold one distribution
warehouse project. On the other hand, for the current fiscal year underreview, JAIC only sold one mega solar project. As a result, both decreased,
those the proceeds of sale of operational investment securities and therealized capital gains. JAIC posted provisions for an investee company
which experienced significant delays in business progress. As a result,investment loss incurred.
As for private equity investment, for the previous fiscal year, JAIC had
mainly sold listed shares in Japan. For the current fiscal year under review,
JAIC earned realized capital gains from listed shares in Japan and fromunlisted shares with relatively large investment amounts in Japan andoverseas. On the other hand, JAIC posted realized capital losses fromsome investee companies whose business conditions have deteriorated
and those with a lower expected investment collection. As a result, theproceeds of sale of operational investment securities increased but therealized capital gains remained about the same as year-on-year.
JAIC posted provisions for investee companies with relatively large
investment amounts since these companies experienced significant
delays in business progress. As a result, investment income decreasedyear-on-year.
(Fund interests income, etc.)
Fund interests income, etc. consist of revenues of the projects operated
by the JAIC Group (such as revenue from electricity sales, revenue fromvegetable sales, rent fee revenue from group homes for the handicappedand other revenues), interests income from the projects operated byother companies (such as net profits of the projects and gains from the2 / 10

sale of projects), interests income from the 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
under review increased to 1,668 million yen (up 25.5% year-on-year). Outof this, revenues of the projects operated by the JAIC Group accounted
for 742 million yen (down 35.9% year-on-year). Revenue from electricity
sales decreased because JAIC had sold some mega solar projects thatwere selling electricity in the previous fiscal year.
The total of Interests income from the projects operated by othercompanies and from the private equity funds operated by othercompanies increased to 384 million yen (up 161.1% year-on-year). One
healthcare project operated by other company posted capital gain fromselling the facility for the elderly.
Interest and dividend income increased to 539 million yen (up 2,088.8%year-on-year). JAIC received profit dividends from two logistic warehouseprojects and one other project those sold their facilities.
(Fund interests losses, etc.)
Fund interests losses, etc. consist of costs of the projects operated by
the JAIC Group (such as cost of electricity sales, cost of producing
vegetables, rental cost of group homes for the handicapped and othercosts), interests losses from the projects operated by other companies(such as losses mainly from projects in the early stage of launch) andinterests losses from the private equity funds operated by othercompanies and others.
The total amount of fund interests losses etc. for the current fiscal year
under review decreased to 806 million yen (down 11.7% year-on-year).
Out of this, costs of the projects operated by the JAIC Group accounted
for 661 million yen (down 22.3% year-on-year). Cost of electricity sales
decreased because JAIC had sold some mega solar projects that wereselling electricity in the previous fiscal year.
The total of Interests losses from the projects operated by othercompanies and from the private equity funds operated by othercompanies increased to 145 million yen (up 129.6% year-on-year).
Interests losses increased mainly from the projects those experienced
delays in business progress and those were in the initial stages of3 / 10development.
As a result, operating revenue increased by 20.9% year-on-year to 3,872
million yen, operating cost increased by 24.4% year-on-year to 2,453
million yen and operating gross profit increased by 15.1% year-on-year to1,419 million yen.
(b) Selling, general and administrative expenses and operating income
The total amount of selling, general and administrative expensesdecreased to 1,408 million yen (down 4.2% year-on-year). Administrative
expenses from projects decreased because JAIC had sold some mega
solar projects in the previous fiscal year.
As a result, operating profit was 11 million yen (compared to operating
loss of 237 million yen for the previous fiscal year).
(c) Non-operating income, non-operating expenses and ordinary income
Non-operating income decreased to 50 million yen (down 38.9% year-onyear). Main reason was a decrease of foreign exchange gains incurred
when recovering assets denominated in foreign currencies.
Non-operating expenses mainly consists of interest expenses anddecreased to 188 million yen (down 26.7% year-on-year). On the nonconsolidated basis, interest expenses decreased with the reduction ofloans payable. On the consolidated basis, interest expenses alsodecreased with the reduction of loans payable because JAIC had soldsome mega solar projects in the previous fiscal year.
As a result, ordinary loss was 126 million yen (compared to ordinary lossof 412 million yen for the previous fiscal year).
(d) Extraordinary income/loss and profit/loss attributable to owners ofparent
For the current fiscal year under review, JAIC did not posted large amountextraordinary income or large amount extraordinary loss.
Income tax-current increased to 45 million yen (up 902.1% year-on-year)
because taxable income incurred.
4 / 10JAIC properly estimated tax effect accounting and did not recognize
deferred tax assets for both the current fiscal year under review and theprevious fiscal year.
Profitattributabletonon-controllingshareholders

istheprofit

attributable to fund investors other than the JAIC Group among theprofits of the funds subject to consolidation. The amount decreased to
123 million yen (down 68.6% year-on-year) as the profits of the funds
subject to consolidation decreased.
As a result, loss attributable to owners of parent amounted to 295 millionyen (compared to profit attributable to owners of parent of 19 million yen
for the previous fiscal year).
(2) Cash flows(Cash flow from operating activities)
Net cash generated from operating activities turned profitable andamounted to 157 million yen (compared to 145 million yen used in for theprevious fiscal year). Cash inflow from collection of investments
increased.
(Cash flow from investing activities)
Net cash generated from investing activities was 0 million yen (comparedto 212 million yen generated from for the previous fiscal year). There
were no proceeds from sale of non-operational investment securities forthe current fiscal year under review.
(Cash flow from financing activities)
Net cash used in financing activities with repayments of long-termborrowings decreased year-on-year to 806 million yen (compared to1,007 million yen used in for the previous fiscal year).
Cash and cash equivalents as of March 31, 2023 decreased by 635 million
yen from March 31, 2022 to 1,762 million yen, after adding effect ofexchange rate change on cash and cash equivalents of 11 million yen.

5 / 10(3) Financial position(Assets)
Total assets as of March 31, 2023 decreased to 18,775 million yen(compared to 20,231 million yen as of March 31, 2022).
Cash and deposits decreased to 3,130 million yen (compared to 5,666
million yen as of March 31, 2022). Deposits attributable to the investment
funds operated by the JAIC Group decreased because of the payment oftaxes and distributions.
Meanwhile, the amount of the cash and deposits include deposits
attributable to the investment funds operated by the JAIC Group. Those
deposits must be managed in accordance with each fund’s partnershipagreement. The JAIC Group clearly separates and manages those
deposits from cash and deposits belonging to the JAIC Group. Cash anddeposits belonging to the JAIC Group were cash and cash equivalents of1,762 million yen as of March 31, 2023 (compared to 2,397 million yen
as of March 31, 2022) in the consolidated statements of cash flows.
In addition, private equity investments conducted by the JAIC Group arehighly affected by factors such as stock market fluctuations because of
the nature of their business. It is difficult to make a reasonable forecastof business results in the current volatile environment. As a result, theamount of funds recovered from private equity investments could decline
significantly. Under these circumstances, the JAIC Group must always
maintain a certain balance of cash and deposits to ensure not only thepayment of expenses and interests and the repayment of loans payable
but also the investment for future growth.
Property, plant and equipment mainly consists of assets of projects
operated by the JAIC Group, such as renewable energy power plantfacilities, vegetable plant facilities and group homes for disabled people.
Total amount of property, plant and equipment increased to 5,432 million
yen (compared to 4,148 million yen as of March 31, 2022). JAIC invested
in group homes for disabled people and mega solar power generation
facilities during the current fiscal year under review.
Operational investment securities consist of private equity investments,
6 / 10the projects those are operated by the JAIC Group and are in the initialstages of development, and the projects operated by other companies.
Operational investment securities as of March 31, 2023 decreased to9,375 million yen (compared to 9,538 million yen as of March 31, 2022),
reflecting positive investment collection of private equity investments
and project investments.
Allowance for possible investment losses as of March 31, 2023 increased
to 1,588 million yen (compared to 1,492 million yen as of March 31, 2022),
because of positing provisions.
As a result, the investment loss provision ratio (ratio of allowance forpossible investment losses to operational investment securities) as ofMarch 31, 2023 was 16.9%, up 1.3 points from March 31, 2022.
(Liabilities)
Total liabilities decreased to 9,673 million yen as of March 31, 2023
(compared to 10,787 million yen as of March 31, 2022).
Of liabilities, total of loans payable and bonds as of March 31, 2023
decreased to 8,993 million yen (compared to 9,521 million yen as ofMarch 31, 2022). Loans payable of JAIC itself decreased to 5,137 millionyen (compared to 5,943 million yen as of March 31, 2022). As for project
finance and bonds for the projects operated by the JAIC Group andothers, the balance as of March 31, 2023 increased to 3,856 million yen(compared to 3,578 million yen as of March 31, 2022).
Loans payable of JAIC itself decreased reflecting the repayments for thecurrent fiscal year under review. After securing investment funds for
future growth, JAIC will repay its loans payable to an appropriate level.
As for loans payable by project finance and bonds for the projects
operated by the JAIC Group, the balance increased from the end of theprevious consolidated fiscal year mainly due to new procurement for
projects of group homes for disabled people.
Project finance and bond for the projects operated by the JAIC Group will
limitedly affect the financial soundness of the JAIC Group, since its
source of repayments is limited to the assets and revenues of theprojects. Therefore, the JAIC Group will continue to expand fundprocurement through project finance and bond. The JAIC Group will
7 / 10promote leveraged investment in a wide range of projects such as
renewable energy projects operated by the JAIC Group. This enhances
profitability of the JAIC Group while maintaining financial soundness.
(Net assets)
Of net assets, total shareholders’ equity as of March 31, 2023 decreased
to 7,581 million yen (compared to 7,766 million yen as of March 31, 2022)
due to loss attributable to owners of parent. On the other hand, total
assets also decreased. As a result, the equity ratio as of March 31, 2023
was up 2.0 points to 40.4% (compared to 38.4% as of March 31, 2022).
Total net assets as of March 31, 2023 also decreased to 9,101 million yen(compared to 9,443 million yen as of March 31, 2022).
(4) Business Position(a) Investment and loan activities
For the current fiscal year under review, execution of investments andloans increased by 4.1% year-on-year to 3,561 million yen in 28
companies/projects. As of March 31, 2023, the balance of investments
and loans increased to 14,133 million yen in 131 companies/projects(compared to 13,784 million yen in 129 companies/projects as of March31, 2022).
Looking at project oriented investment, it increased by 11.1% year-onyear to 2,152 million yen in 18 projects that total amount of execution ofinvestments and loans in new projects and in existing projects. The
investment amounts increased in renewable energy projects. JAIC
additionally invested in existing mega solar power generation projects
and newly invested in projects such as biomass power generation andsolar power systems with storage batteries installed on the rooftops. On
the other hand, the investment amounts decreased in health careprojects and in a smart agriculture project.
As for investment collection, JAIC sold one mega-solar project, one
healthcare project, one distribution warehouse project and one otherproject during the current fiscal year under review. Additionally,
distributions from existing projects decreased the balance and interest
profits/losses also increased/decreased the balance. As a result, the8 / 10

balance of investments and loans as of March 31, 2023 increased to7,123 million yen in 50 projects (compared to 6,344 million yen in 43
projects as of March 31, 2022).
As of March 31, 2023, JAIC invested in 13 mega solar projects (15 powerplants) with the capacity of 30.7ＭＷ which are either currently sellingelectricity or are under construction or planning. Out of these mega solar
projects, the portion that attributable to JAIC is 13.1ＭＷ in capacity. JAIC
also invested in two biomass project with the capacity of 4.0ＭＷ, twobiogas projects with the capacity of 1.1ＭＷ, one biogas plant operator,
one wind power project with the capacity of 25.2ＭＷ at most and threesolar power systems with storage batteries installed on the rooftops withthe total capacity of 1.2ＭＷ.
Looking at private equity investment, when JAIC’s own capital is invested,
JAIC makes strategic investment in partner companies for project
oriented investment. JAIC invests its own capital in a selective mannerbased on business themes in line with its management philosophy inprinciple. When the capital of a fund is invested, JAIC makes financial
investment pursuant to the fund’s investment policy.
For the current fiscal year under review, it decreased by 5.0% year-onyear to 1,408 million yen in 10 companies that total amount of executionof investments and loans in new companies and in existing companies.
Asforstrategicinvestments,investment

amountpercompanydecreased. On the other hand, financial investments increased because
investment for venture companies increased in both number and amount.
As for investment collection, JAIC sold three strategic investees including
partial sale. Looking at financial investments, JAIC mainly sold listed
shares in Japan and unlisted shares in China. As a result, the balance ofinvestments and loans decreased to 7,010 million yen in 81 companies(compared to 7,440 million yen in 86 companies as of March 31, 2022).
(b) Management of investment funds
As of March 31, 2023, the number of investment funds, for which the JAIC
Group is responsible for management, operation or provision of
9 / 10investment information, totaled 9, and the balance of total commitment
amounts under management decreased to 15,850 million yen (comparedto 10 investment funds with 16,463 million yen as of March 31, 2022).
In the current fiscal year under review, “Succession Investment Limited
Partnership, Ⅱ” was newly established and increased its commitment
amounts to 3,701 million yen. This fund is supporting SMEs with thebusiness succession needs in Japan. On the other hand, two investment
funds which total commitment amount of 4,328 million yen decreased
from “Maturity is being extended”. The total commitment amount ininvestment funds increased by 14 million yen because of foreignexchange fluctuation.

(End)

10 / 10