Financial Results Overview
for Year Ended
March 31, 2023
Japan Asia Investment Co., Ltd.
(JAIC) (TSE 8518)
Announcement date : May 15, 2023

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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Contents
1

Summary

P3

2 Results for the current fiscal year (year-on-year)

P4

3

Progress of the Medium-Term Management Plan
(Numerical Plan)

P9

4

Progress of the Medium-Term Management Plan
(Action Plan)

P14

5 Appendix

P19

The figures in this document are based on consolidated financial statements prepared inaccordance with the previous accounting standards.
Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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1. Summary

Results for the current fiscal year (year-on-year)•

Operating revenue was ¥ 3,017 million (up, 25.2 %) and net loss attributable to owners of parent was ¥ (269) million(compared to profit attributable to owners of parent of 49 million yen for the the previous fiscal year).

•

Sales of unlisted shares progressed in Japan and overseas. Capital gains from 5 project-oriented investments, including 1
project which had been sold in the previous fiscal year, contributed.

•

Capital loss, provisions and losses from projects increased operational cost and led the deficit.

Progress of the Medium-Term Management Plan (Numerical Plan)•

As for the result for FY 2023, operating revenue achieved the plan, but profit fell short of the plan by ¥ 819 million.

•

As for the result forecast FY 2024, operating revenue is expected ¥ 2,300 million and net profit attributable to owners ofparent is expected ¥ 120 million. We expect recovery in profitability by capital gains from unlisted shares, distribution
warehouse projects and projects of group home for disabled people. Compared to the plan, however, net profit attributable toowners of parent fell short of the plan by ¥ 730 million.

•

The main reason for the failure to achieve the plan is the sluggish capital gains of shares. Provisions and losses from projects
are also factors of the decline in profits.

•

Though the number and value of sales of project-oriented investments will exceed the plan, they can not compensate for allother downsides.

Progress of the Medium-Term Management Plan (Action Plan)•

The business policies of the plan are securing profits and funds by selling existing financial investment assets, investing thefunds into project-oriented investment and strategic investment and increasing capital gains from strategic investees.

•

In FY 2023, according to the plan we invested in project-oriented investments and strategic investees and acquired capitalgains from strategic investees.

•

In FY 2024, we plan to increase capital gains by enhancing hands-on support mainly to strategic investees, to improve
profitability for under-monetized projects and to increase operating revenue from M&A advisory business.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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2. Results for the current fiscal year
Outline of results

P5

Break down of operating revenue & operating cost

P8

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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2. Results for the current fiscal year
- Outline of results - I/S(million yen)

FY 2022 FY 2023 Change

Operating revenue

2,409

3,017

25.2%

Operating cost

1,133

2,056

81.4%

Operating gross profit

1,276

SG&A expenses

1,189

1,147

(3.6%)

Operating income

86

(185)

-

Ordinary income

61

(224)

-

Profit attributable toowners of parent

49

(269)

-



961 (24.6%)

Factors for increased operating revenue• Proceeds of sales of securities increased. Sales of unlisted shares, which were relatively large investment amounts,
progressed in Japan and overseas.



Factors for deficit• Operating cost increased due to capital loss of shares, provisions and loss from project investments.
• Strong Capital gains from securities and project investments could not compensate for the increased operating cost.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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2. Results for the current fiscal year
- Outline of results - B/S(million yen)

FY 2022

Total assets

14,972

FY 2023

13,413

Changefluctuation factors(billion yen)

(10.4%)Cash and deposits

2,740

2,464

repayments of loan (0.8),
execution of investments &(10.1%) loans (2.9), expenses
etc.(0.9), collection +4.3

Project oriented investment securities &loans after deducting allowance forpossible investment loss

6,781

6,053

(10.7%) loans +2.4, distribution &Strategic investment securities in partnercompanies after deducting allowance forpossible investment loss

1,783

782

(56.1%) collection (0.7), unrealized

execution of investments &collection (3.0), allowance(0.1)
execution of investments +0.2,
gain (0.3), allowance(0.2)

execution of investments +0.6,
distribution &9.0% collection (0.8), unrealized gain
+0.3, decrease of allowance+0.1

Financial investment securities after
deducting allowance for possible
investment loss

3,029

3,301

Loans payable

5,943

5,142

(13.5%) repayments of loan (0.8)

Total shareholders' equity

7,779

7,518

(3.4%) loss (0.27)

The balance of project-oriented investment and strategic investment decreased. Amounts of investment collection
exceeded amounts of investment execution.

The balance of loans payable decreased. After securing investment funds for future growth, JAIC will repay loans payable
to an appropriate level.

Total shareholders’ equity decreased due to loss.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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2. Results for the current fiscal year
- Outline of results - C/F(JPY million)

FY 2022

FY 2023

Operating cash flow

(145)

157

Investing cash flow

212

0

Financing cash flow

(1,007)(806)

Change in net cash flow

(903)

(635)

Cash & cash equivalents at end of period

2,397

1,762



Operating cash flow; net cash turned profitable because cash inflow from collection of investments
increased

Financing cash flow; net cash used in with repayments of long-term borrowings decreased

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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2. Results for the current fiscal year
- Break down of operating revenue & operating cost
Total

（JPY million）

FY 2023

Project oriented investment

FY 2022

FY 2022

FY 2023

FY 2023

2,409

3,017

1,235

2,076

1,174

941

Fund management fees etc.

154

134

146

126

7

7

Proceeds of sales of securities

1,573

2,057

915

1,907

657

149

Fund interests income etc.

631

781

162

35

469

746

Other operating reveue

50

44

10

5

40

38

1,133

2,056

483

1,503

650

552

Operating revenue

Operating cost
Cost of securities sold

810

1,311

300

1,221

509

90

Investment write-offs and Provision
for allowance for possible investment
losses

145

304

145

229

-

75

Fund interests losses etc.

167

426

33

49

134

377

Other operating costs

10

12

3

3

7

9

1,276

961

752

572

523

389

Operating gross profit

FY 2022

Private equity investment

Private equity investment – Revenue increased, and operating gross profit decreased•

Of operating revenue, proceeds of sales of securities increased. Sales of listed shares increased in Japan. Sales of unlisted shares, which wererelatively large investment amounts, progressed in Japan and overseas.

•

Of operating cost, cost of securities sold increased due to capital loss. Capital loss incurred from sales of investee companies whose businessconditions have deteriorated and which were with a lower expected investment collection.

•

Of operating cost, provisions were recorded for investee companies, which were relatively large investment amounts and experienced delays inbusiness progress.

Project oriented investment – Revenue decreased, and operating gross profit decreased•

Of operating revenue, proceeds of sales of securities decreased with a smaller number of projects sold. In the the previous fiscal year, JAIC
sold 1 mega solar project and partially sold 1 logistic warehouse. In the current fiscal year, JAIC sold 1 mega solar project.

•

Of operating revenue, fund interest income etc. increased because of capital gains of 4 projects such as 2 logistic warehouses, 1 facility forthe elderly and 1 commercial building.

•

Of operating cost, fund interest losses etc. increased because of losses incurred from vegetable plant project, bio-gas power generation
project and other projects in the initial stage of development.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Progress of the Medium-Term Management Plan
(Numerical Plan)
Progress in FY 2023

P10

Breakdown of result forecast of FY 2024

P11

Progress in cumulative over 3 years

P12

Cautionary statements

P13

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Progress of the Medium-Term Management Plan
(Numerical Plan) - Progress in FY 2023
(million yen)

Result forecast
FY2022(Disclosed on'22 May)

Actual
FY 2023

achievement
ratio

Operating revenue

3,000

3,017

100.6%

Operating cost

1,050

2,056

195.8%

Operating gross profit

1,950

961

49.3%

SG&A expenses

1,200

1,147

95.6%

Operating income

750

(185)

-

Ordinary income

650

(224)

-

Profit attributable toowners of parent

550

(269)

-

ROE

6.3%

(3.5%)-



Operating revenue achieved the plan 100.6％, but profit fell short of the plan.



Factors caused profits to fall short of the plan
• Capital gains of shares fell short of the plan; Delay in the timing of the sale, slump in the share price, capital loss
• Project income gains fell short of the plan; losses increased from projects which experienced delays in business progress
and from projects in the initial stage of development.
• Strong capital gains from project investments could not compensate for the short of capital gains of shares and the shortof project income gains.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Progress of the Medium-Term Management Plan
(Numerical Plan)- Breakdown of result forecast FY 2024
(million yen)
Operating revenue
Operating cost
Operating gross profit

SG&A expenses
Operating income
Ordinary income
Profit attributable to owners ofparentROE



Actual
FY 2023

3,017
2,056
961
1,147
(185)
(224)
(269)
(3.5%)

Result forcast
FY2024

2,300
1,000
1,300
1,100
200
120
120
1.6%

Result forcast
FY2024(2Q)

Change(23.8%)(51.4%)
35.1%(4.1%)
-

-

-

525
325
200
570
(370)
(410)
(410)
-

Break down of operating
revenue：
Proceeds of sales ofoperational investment
securities：
1,470
Capital gains from project：
580
Others：250
Break down of operating cost：
Cost of securities sold：400
Investment write-offs andProvision for allowance forpossible investment losses：
430
Fund interests losses etc.：160
others：10

Operating revenue is expected decrease 23.8％ year-on-year but net profit attributable to owners of parent is expected toreturn to profitability with ¥ 120 million.



Factors for decreased operating revenue; Decrease in proceeds of sales of sharesFactors for recovering profitability;•

Any capital losses are not expected, and higher profitability is expected for securities to be sold.

•Fund interests losses etc. is expected to decrease due to improvement of profitability for under-monetized projects.

Valuation losses and provisions are conservatively assuming that they will increase year-on-year.

We expect a cumulative deficit until the third quarter, since most of the profits are expected to be generated in the third
quarter and in the fourth quarter.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Progress of the Medium-Term Management Plan
(Numerical Plan)- Progress in cumulative over 3 years
Profit attributable to owners ofparent
Unit: ¥M

Unit: ¥M

Breakdown of cumulative gross operating
profit over three years

850

Three-year cumulative plan

550

compared tothe plan
50%

340

Three-year cumulative actual &forecast

3,490

FY 2023

Forecast

1,742
Plan

Actual(269)
PlanActualPlan

FY 2022

78％

120

49

FY 2024

1,620

87％

1,256
620

Private equity
investment

Project oriented
investment

539

Fees



Actual and forecast profit attributable to owners of parent is expected to be lower than planned for all three years.

The downside is occurring at the gross operating income.
•Private equity investment; due to the short of capital gains and the excess of provisions, cumulative gross operating
profit for the three years is expected to be 50% of the plan•

Project oriented investment; capital gains are higher than planned but some projects are under-monetized, andcumulative gross operating profit for the three years is expected to be 78% of the plan•

Fees; Since we could not develop deals in M&A advisory business, 87% of the plan is expected

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Progress of the Medium-Term Management Plan
(Numerical Plan)- Cautionary statements
 The private equity investment business conducted by theGroup will be significantly affected by changing factors suchas stock markets, given the characteristics of the business. In
addition, it has been difficult to forecast results reasonably inthe rapidly changing 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
Accounting Standard” and any other forward-looking
statements in this document are based upon the information
currently available to JAIC and certain assumptions. The
achievement is not promised. Various factors could cause
actual results to differ materially from these result forecasts.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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4. Progress of the Medium-Term Management Plan
(Action Plan)
Business policy

P15

Progress in FY 2023

P16

Issues and measures for the FY 2024

P18

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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4. Progress of the Medium-Term Management Plan
(Action Plan) - Business policy
Business
Policy

Secure profits and funds by selling existing financial investment assetsIncrease the balance of project investment based on the new investment policyEstablish a hands-on investment style through collaboration in project investment andincrease capital gains from strategic investees

Basic
policyIncrease capitalgains fromstrategic
investees

Liquidatefinancialinvestment
assets early

Priority
measures

Basic
policy• Increase thebalance of project
investment• Diversify
investment target
projects

Financial Results Overview for Year Ended FY Mar. 2023

Priority
measures•

Keep the balance of financial investment within therange of equity capital•

Increase capital gains by providing hands-on
support to strategic investees•

Liquidate financial investment assets in maturity
venture funds early•

Forming investment funds in collaboration withpartners and, in principle, investing in financial
investment assets from these funds•

Provide hands-on support to strategic investees andrealize their IPO early•

Increase the balance of project investment•

Diversify investment target projects and invest in
the partner companies of new investment area•

Accelerate investment in logistics warehouses andgroup homes for the handicapped as the next pillarof earnings for the Mega Solar Project•

Realize the sale of existing logistics warehouses.

•

Aiming for early profitability of the vegetable plant•

Diversify investment target projects and invest in
the partner companies of new investment area

© Japan Asia Investment Co., Ltd. 2023

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4. Progress of the Medium-Term Management Plan
(Action Plan) - Progress in FY 2023
Action plan for 3 years

Private equity
investment

Progress in FY 2023

 Liquidate existing assets and complete asset
replacement.
 Originate three new funds.
 Support strategic partners to go on public.
Cultivate new investment areas and promotestrategic investment.

Renewable energy Increase investments in rooftop solar power
generation project in Vietnam and biogas projectin Japan.
 Sell mega solar projects in Japan after thecompletion to post gain on sale.

Smart agriculture

Support to develop customer base such as major
convenience store and expand business size by
constructing additional plant up to No.4

Distribution center(logistics
warehouse) Increase investments as a priority area.
 Invest in early stages of projects and achieve highreturns by attracting later stage investors looking
for middle-risk & middle returns.

Healthcare (facility
for the elderly)Continue to invest in carefully selected projects

Financial Results Overview for Year Ended FY Mar. 2023

 TMS Co., Ltd. achieved IPO in Nov. 2022.
 Established “Succession Investment Limited
Partnership, Ⅱ” and increased the commitment
amount.
 Exited 1 strategic investee company by a M&A deal
and executed 2 strategic investments
 Invested in solar power systems with storage
batteries installed on the rooftops of distribution
centers
 Invested in Non-FIT type biomass power generation
project in Mie
 As for mega solar power plant, 1 project was sold and
1 project started electricity sales
 Expanded sales channels to major convenience
stores, etc., progressed in passing on costs
 Morvel Farm, a strategic investee company, takes
over the management of a vegetable factory
operating company in Yabu City, Hyogo Prefecture,and is the third factory including our investment
project.
 Executed 2 additional investments in existing
projects
 Received profit dividends from the project which soldits facility in last fiscal year Sold the distribution center in Hidaka City, Saitama
and received profit dividends
 Sold the facility in Minamiaoyama, Minato-ku andposted fund interest profit Built up facilities in the Shinonome-Toyosu area of
Koto Ward (April 2023)© Japan Asia Investment Co., Ltd. 2023

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4. Progress of the Medium-Term Management Plan
(Action Plan) - Progress in FY 2023
Action plan for 3 years

Progress in FY 2023

Healthcare (grouphome for disabled
people)Invest in 50 projects by originating funds from majorbanks and leasing companies Built up 3 group homes and established a total of 10group homes
 The fund which JAIC invested with a leasing company
etc. invested 5 group homes in total and 2 grouphomes were established

New investment area

Develop new investment area that will become a core
revenue generator from businesses related toexisting investment themes and other businessthemes which may arise from corona crisis

 Invested in new projects such as electric assisted
bicycle subscription service and tree burial
 Invested in 3 entertainment contents
 Built up shared atelier project in Fujisawa City,
Kanagawa (April 2023)

Accumulate pipelines and increase profits ofadvisory business by co-working with partners athome and abroad

In Feb. 2023 acquired Asian Market Planning Co., Ltd.
as a subsidiary and expanded the scope of project
development.

M&A advisorybusiness

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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4. Progress of the Medium-Term Management Plan
(Action Plan) - Issues and measures for the FY 2024
IssuesMeasures

Private equity
investment

 Gains on IPOs and the sale of unlisted shares ofinvestee companies with relatively large
investment amount are lower than planned
 Provision incurred for investee companies which
experienced delays in business progress Enhance hands-on support mainly to strategic
investees

Renewable energy

In Japan, biogas power generation project delayed
stable operation and profitability because theamount of waste collected as a raw material for
power generation is below the plan.

We introduced food manufacturers and foodsupermarkets to increase collection volume of waste. As
a result, the amount of collection and power generation
are on the rise.

Smart agriculture

Production volume at the Tamba Sasayama Plant isbelow the plan and profitability is delayed.

 We supported measures to improve production, andproduction volume is on the rise.
 We supported the acquisition of a vegetable factoryby a strategic investee and operating costs are
expected to be reduced.

M&A advisorybusiness

Due to lack of internal resources, etc., we could not
develop M&A deals.

Utilize the resources of Asian Market Planning which
joined JAIC Group as a subsidiary

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix
Examples of Business Progress

P20

Renewable energy projects

P28

List of project oriented investments

P29

Strategic investment

P33

Asia network

P34

Funds & investment activities

P35

Business results & financial position

P36

Break down of operating revenue & operating cost

P37

Business field

P38

Profit structure

P39Core competence

P41

Efforts for SDGs

P42

Company data

P43

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- Private equity investment
Established and increased
Succession Investment Limited Partnership, Ⅱ
Name

Succession Investment Limited Partnership, Ⅱ

Date of establishment

16, August 2022

General Partner

AJ Capital Co., Ltd. [JV as a 50% stake in JAIC and Aozora Bank, Ltd.]

Total commitment amount

3,701 million yen [as of Feb. 2023]
Aozora Bank, Ehime Bank, Kagoshima Bank, Gifu Shoko Credit Union, Keiyo Bank,

Limited Partners

Shonai Bank, Towa Bank, Tottori Bank, Japan Asia Investment, Hokuto Bank,Japan Post Bank

Investment target

SMEs in Japan with business succession needs

AJ Capital, JV as a 50% stake in JAIC and Aozora Bank, manages the fund which supporting the businesssuccession needs.



The Fund increased the commitment amount by 0.9 billion in Dec. 2022 and by 1.0 billion in Feb. 2023.
Size of the fund are to ¥ 4.0 billion at final close.

The Fund mainly invests in small cap zone and collaborates with regional financial institutions nationwide toensure smooth business succession of SMEs

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- Renewable energy
Solar power systems with storage batteries
installed on the rooftops of distribution centers

Strategic investee;
KIC Holdings Inc.



Strategic investee;
Smart Solar Corporation

KIC Holdings Inc., one of the strategic investees, developed these distribution centers.
Smart Solar, also one of the strategic investees, developed these solar power systems with storage batteries.
JAIC invested in these solar power systems.

The system combines and efficiently operates solar panels, storage batteries and commercial power sources

A low environmental-load distribution center that uses sunlight to cover the power used by the facility

The tenants of the facilities can consume the clean energy generated at low cost.
Additionally, this system functions as an independent emergency power source in the event of a power outage.

This is the result of successful collaboration between strategic investee companies.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- Renewable energy
Invested in NON-FIT type biomass power generation project in Mie
Operator

Power Aid Mie G.K.

Representative

Biomass Power Technologies Co., Ltd.

ＵＲＬ

https://www.power-aid-group.co.jp/

Location of powerplant

24 Kinogo-cho, Matsusaka-shi, Mie (Woodpia
Matsusaka)
Japan Asia Investment Co., Ltd., HASEKO
Corporation, BMecomo Co., Ltd., Rexport Co., Ltd.,JA Mitsui Leasing, Ltd.
Mie Enewood Co., Ltd., Taisei Sangyo Co., Ltd.,
Matsuda Oil Co., Ltd., Hokuto Corporation, RE
Suwako Co., Ltd., Biomass Power Technologies Co.,Ltd.
1990kW (Adopted Takuma Corporation's hybrid
combustion-compatible traveling grate-type boiler)

Investor

FounderMaximum output

Estimated annual
power generation

Approx. 16.47 million kWh (Estimated powertransmission volume: Approx. 15.15 million kWh)

Start of commercial
operation

January 2025 (scheduled)

Total Project Cost

Approximately 2.6 billion yen (tax included)* It is
procured from long-term loans that have been
evaluated by Japan Rating Agency, Inc. as Green1,
the highest rating of a green loan rating.

Participating
Financial
Institutions

Syndicated loans at nine banks arranged by Mizuho
Bank, Ltd.

JAIC invested in “the Power Aid Mie Shin Biomass ™ Matsusaka Power Plant” constructed and operated by Power Aid Mie in
Matsusaka City, Mie Prefecture.

Fuels of this power plant are waste mushroom beds (used culture) discharged from Hokuto Corporation's Mie Mushroom Center
located in Taki Town, Mie Prefecture, and recycled wood chips and plastic resources mainly discharged from the Chubu area.

The generated electricity will be supplied to Hokuto Corporation, fuel supplier, for 15 years.

Reducing the burden of waste disposal operations in Taki Town while contributing to the establishment of a resource and energy
recycling economy in the region

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- Smart agriculture
Morvel Farm, a strategic investee company, takes over the management ofa vegetable factory operating company in Yabu City, Hyogo Prefecture

One of our strategic investee company, Morvel Farm, is a partner company that operates a vegetable factory in Tamba-Sasayama
City, Hyogo Prefecture.



In February 2023, Morvel Farm acquired all the issued shares of the company that operates the vegetable factory (Yabu Factory)in Yabu City, Hyogo Prefecture, and took over the management. With Yabu Factory, Morvel Farm expanded the production capacityfrom about 470 tons to about 540 tons per year.

Yabu Factory produces about 3,000 shares/day (65~70 tons/year) of leafy greens such as frill lettuce and sells them to fooddelivery companies and supermarkets under the "Lovege" brand.



Morvel Farm plans to utilize the know-how cultivated at the Tamba Sasayama Factory in the operation of the Yabu Factory. To
expand the production scale and to enhance the quality of the Yabu Factory, Morvel Farm plans to replace some of the factoryequipment, improve production methods and improve the yield rate.



By operating the two factories as one, Morvel Farm expects various synergistic effects, such as improving logistics efficiency,
reducing costs through joint material procurement and increasing sales to existing customers.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- Healthcare - Facility for the elderly
Nursing home for the elderly "Plaisant Grand Toyosu" completed
and opened at “AIP25 Toyosu Building”, large-scale complex
elderly facility in Shinonome 1-chome, Koto-ku, Tokyo
Partner:
AIP Healthcare
Japan G.K.
Name

AIP25 Toyosu Building
Tokyo Waterfront Rapid Transit Rinkai Line
"Shinonome" Station 11 minutes on footAccessTokyo Metro Yurakucho Line "Toyosu" Station 13
minutes on footSite area: 2,792.17㎡
Structure: Reinforced concrete, 9 floors above
ground, 1 floor below ground
Property
1-2F Food Supermarket
Overview
3F Bilingual Kindergarten
4F Medical Mall
5-9F Nursing home for the elderly(Plaisant Grand Toyosu: Capacity 100 people)
Investment
February 2020
Execution
April 2023
completion(Completion of Plaisant Grand Toyosu)

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- Healthcare - Group home for disabled people
Expanded to 10 group homes
by strengthening cooperation with regional financial institutions

Partner:Social Inclu Inc.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- New investment area
"KIKI BASE FUJISAWA" , a shared facility for people who enjoy
creative activities, in Fujisawa City, Kanagawa PrefecturePartner;
ENJOYWORKSIn April 2023, the former factory in Fujisawa City, Kanagawa Prefecture was renovated as a shared facility for enjoying
creative activities.



Utilize the advantages unique to the former factory, such as the use of tools and the ability to work with sound.



Facilities for a wide range of creative users, including creators, artists, freelancers, persons who have side jobs andpersons who enjoy hobbies



ENJOYWORKS (“EW”), the partner company of this project, develops and renovates real estate for 15 years since its
incorporation. EW has successfully involved residents, local companies, regional financial institutions and local
government in EW’s projects and has developed various distinctive projects.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Examples of Business Progress- M&A advisory businessAsian Market Planning Co., Ltd.
Joined JAIC Group as a subsidiary



Name

Asian Market Planning Co., Ltd.

Representative

President & CEO Yasuji Kibayashi

Description ofBusiness

M&A advisory services including cross-borderand fully committed support for entering theASEAN market and overall corporate
management consulting

Paid-in capital¥ 11 million

Date of
Establishment

11 Apr 2012

Shareholders

JAIC （８０％）、Yasuji Kibayashi （20％）

Asian Market Planning (AMP) is a consulting firm that makes extensive use of its network with regional
financial institutions to provide M&A advisory services and support for business expansion into Asia.



JAIC has been collaborating with AMP in the field of network building in Asia and fund formation.



Since AMP joined JAIC Group as a subsidiary, JAIC incorporates the network and knowledge into the Group.
JAIC plans to grasp M&A and overseas expansion needs not only through the process of deal sourcing forprivate equity investment, but also in a wide range, and plans to increase fee income.



In addition, JAIC plans to utilize the network with regional financial institutions to further expand project
investment.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Renewable energy projects(as of March 2023)
Mega solar projects

Started electricity sales 10 projects (12 power plants) 24.7 MW
Under construction or under planning
3 projects
6.0 MWTotal
13 projects (15 power plants) 30.7 MW
attributable to JAIC
13.1 MWTransfers to buyers other than the funds operated by the JAIC Group

33 projects

189.0 MW

*1: Underlined projects are invested from JAIC Solar Fund L.P., Ⅱ*2: solar power systems with storage batteries installed on the rooftops
Fukuoka, Mega Solar
1 project, 3 power
plants 3.0 MW
in total

Kumamoto, Mega Solar
1 project 3.1MW

Saitama, Solar Power System*2,
1 project 0.2 MW
1 project 0.3 MW

Kagawa, Mega Solar Mie,
4 projects 8.7MW Biomass, 1 project 2.0MW / 1 project 2.0MW
Wind power, 1 project at most 25.2MW

Hokkaido, Mega Solar,
1 project 2.3MW
Aomori, Bio gas,
1project 0.03MW
Iwate, Mega Solar,
1 project 2.4MW
Fukushima, Mega Solar,
1 project 2.7MW
Tochigi, Mega Solar,
3 projects 6.0MW
Tokyo, Bio gas,
1 project 1.1MW
Kanagawa, Mega Solar,
1 project 2.5MW
Solar Power System*2,
1 project 0.7MW* 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 not necessarily linked
to the MW figure of the project.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - List of project-oriented investments(as of March 2023)
Type ofproject
Solar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded,¥]1

Nishiki-cho, Kuma-gun, Kumamoto(*)

3.1

Started electricity sales in Dec. 2015

40

2

Nomaike solar power plant(*)

2.4

Started electricity sales in May. 201736

3

Mitakabeike solar power plant(*)

1.5

Started electricity sales in Sep. 201732

4

Iwate Ichinoseki solar park(*)

2.4

Started electricity sales in Jan. 2018

36

5

Nakaoudaike solar power plant(*)

2.4

Started electricity sales in Apr. 201836

6

Higashioudaike solar power plant(*)

2.4

Started electricity sales in Jul. 201836

7

Hirono solar park

2.7

Started electricity sales in Feb. 2020

40

8

Akkeshi Luke Supor Solar Power Plant

2.3

Started electricity sales in May 2020

40

9

Akada solar power plant

2.5

Started electricity sales in March 2023

32

10

Ukiha-shi, Shirakabe Solar Power Plant
Ukiha-shi, Mizunosato Solar Power Plant
Ukiha-shi, Minou Alps Solar Power Plant

Started electricity sales in Mar.-May
2020

36

11

Tochigi

2.0

Under planning36

12

Tochigi

2.0

Under planning32

13

Tochigi

2.0

Under planning32

3.0 in total

Total 30.7MW [attributable to JAIC 13.1MW]*Projects that are invested from JAIC Solar Fund L.P., Ⅱ

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - List of project-oriented investments(as of March 2023)
Type of projectNo.

Location

solar powersystems withstoragebatteries
installed on
the rooftops

1

Biomass

Bio gasGeneration Capacity[MW]

Current status

FIT[tax excluded,¥]

Koshigaya City, Saitama

0.2

Started electricity sales in Dec. 2022－

2

Hidaka City, Saitama

0.3

Started electricity sales in Feb. 2023－

3

Atsugi City, Kanagawa

0.7

Started electricity sales in Feb. 2023－

1

Matsusaka City, Mie

2.0Started electricity sales in Jan. 2018－2

Matsusaka City, Mie

2.0

Under planning－

1

Hamura City, Tokyo

1.1

Started electricity sales in Mar. 2021

39

Food recycle company that generates
biogas for power generation[operator of Hamura biogas power
generation]－

Started electricity sales in Nov. 201839

Under planning

22

2

3
Wind power

Touhoku Town, Aomori
MieFinancial Results Overview for Year Ended FY Mar. 2023

0.03
At most 25.2

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - List of project-oriented investments(as of March 2023)
Type ofproject

No.

Facility forthe elderly

1

Shinonome, Koto-ku, Tokyo1

Hamamatsu City, Shizuoka

Started operation in Aug. 2020

2

Hiroshima City, Hiroshima

Started operation in Aug. 20203

Utsunomiya City, Tochigi

Started operation in Sep. 2021

4

Kazo City, Saitama

Built up in Feb. 2022

5

Sano City, Tochigi

Started operation in Sep. 2022

6

Koga City, Ibaragi

Started operation in Oct. 2022

7

Tatebayashi City, Gunma

8

Takamatsu City, Kagawa

9Oota City, Gunma

Started operation in Oct. 2022

10

Kiryu City, Gunma

Started operation in Mar. 2023

11

Kawagoe City, Saitama

Under construction

12

Konosu City, Saitama

Under construction

13

Iwaki City, Fukushima

Under construction

14

Higashikagawa City, Kagawa

Under construction

Group home
for thehandicapped

Location

Project scale

Current status

8-story complex facility with a capacity of
100 people

Preparing for operation (Started
operation in Apr. 2023)

20 rooms for residents, 2 rooms for shortstay

Financial Results Overview for Year Ended FY Mar. 2023

Built up in Mar. 2022
Started operation in Sep. 2022

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - List of project-oriented investments(as of March 2023)
Type ofproject

No.

Type ofproject

Others

Project scale

Current status

Tamba Sasayama City, Hyogo

Annual production: 470 tons in total

Existing part: started operation in
Mar. 2019
Expansion part: full-scale operation
started in Aug. 2022

1

Atsugi City, Kanagawa

Total floor area 10,370 m², 3 stories above
groundPreparing for operation (Built up in
Oct. 2022)

2

Ebina City, Kanagawa

Undecided

Under construction or Under
planning

3

Akiruno City, Tokyo

Total floor area 25,804 m² (scheduled), 4
stories above ground

Under construction or Under
planning

4

Non-disclosed

Non-disclosed

Under construction or Under
planning

5

Non-disclosed

Non-disclosed

Under construction or Under
planning

No.

Location

Vegetable
plant

Logistics
warehouse

Location

Details of projectCurrent status

1-

Entertainment contents, “Naked Flowers For You”

Held on the 8th floor of Yurakucho
Marui since March 2022

2

Kanagawa

A shared atelier project to renovate an abandoned factory

Preparing for operation (Started
operation in Apr. 2023)

3-

Electric assisted bicycle subscription service

Executed investment in Aug. 2022

4

Non-disclosed

Non-disclosed

Non-disclosed

5Non-disclosed

Tree burial

Non-disclosed

6

Korea

Exhibition of Japanese animation

Scheduled to be held from July to
October 2023

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix – Strategic investment

Renewable Japan Co., Ltd.
Partner company in mega solar
projects
IPO date : 22 Dec. 2021
Stock market : TSE Mothers

Morihisa Engineering Co., Ltd.
Morvel Farm (subsidiary of Morihisa
Engineering)Partner company in smart
agriculture projects (vegetables)

366 Co., Ltd.

Partner company in perpetual
memorial tree burial project

Smart Solar Corporationsocial inclu CO., LTD.

Partner company in mega solar
projects

Partner company in projects forgroup homes for the handicapped
Investment Exit: Nov. 2022

MD-Farm

KIC Holdings Inc.

Partner company in smart
agriculture projects (strawberries)

Partner company in distribution
warehouse projects

cycloop Co., Ltd.

Partner company in electric assisted
bicycle subscription service

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Asia network

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

- 34 -

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

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

New & increased funds

1,000

2,000

1,359

151

1,001

3,701

AUM of funds - total *1

19,15016,494

17,39016,45016,46315,850

AUM of funds - JAIC *1

5,867

5,344

5,163

5,434

4,953

3,389

Execution of investnemts (Total)*2

3,887

3,749

3,374

1,767

3,420

3,561

Balance of investments (Total)*2

13,981

13,951

15,101

12,855

13,784

14,133

Execution of investnemts (project oriented investment)*2

2,681

3,612

2,150

1,445

1,938

2,152

Balance of investments (project oriented investment)*2

3,582

5,514

6,696

6,088

6,344

7,123

Execution of investnemts (private equity)*2

1,205

136

1,224

322

1,482

1,408

Balance of investments (private Equity)*2

10,398

8,437

8,405

6,767

7,440

7,010

Note 1: Since the number of funds in the course of being wound up while possessing investment assets has increased, funds
during the liquidation procedure are included in the scope of disclosure from FY March 2021.
Note 2: Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed
from FY March 2021 to include loans extended to the projects (excluding distressed receivables) in the scope of aggregation.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Business results
Operating revenues

5,403

2,475

2,760

3,089

2,409

3,017

Operating gross profit

2,328

1,286

1,359

1,301

1,276

961

SG&A expenses

1,311

1,109

1,094

1,086

1,189

1,147

Operating income

1,017

177

265

214

86

(185)

Ordinary income

954

83

140

173

61

(224)

Net income

874

578

302

144

49

(269)

Cash and deposits

7,308

5,564

3,920

3,699

2,740

2,464

Operational investment securities and operatingloans of project oriented investment after
deducting allowance for possible investment loss

3,582

5,514

5,437

5,583

6,781

6,053

373

373

1,005

1,155

1,783

782

5,657

4,765

4,282

3,111

3,029

3,301

Loans payable, bonds & bonds with subscription
rights to shares

11,954

9,784

8,166

6,950

5,943

5,142

Total shareholders' equity

6,545

6,840

7,223

7,338

7,779

7,518

Total assets

19,22017,30515,80014,657

14,972

13,413Financial position

Operational investment securities of strategic
investment in partner companies after deducting
allowance for possible investment loss
Operational investment securities of financial
investment after deducting allowance for possible
investment loss

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

- 36 -

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

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Change(%)

１． Fund management operation
277

241

199

169

154

134

(12.8%)

Success Fees

86

-

-

-

-

-

-

Operating revenue

364

241

199

169

154

134

(12.8%)

-

-

-

-

-

-

-

364

241

199

169

154

134

(12.8%)

Proceeds of sales of securities

3,219

1,746

2,349

2,221

1,573

2,057

30.8%

Fund interests income etc.

1,677

429

172

648

631

781

23.8%

4,897

2,176

2,521

2,870

2,204

2,839

28.8%

2,469

554

965

1,249

810

1,311

61.9%

562

579

245

194

145

304

108.6%

36

49

184

336

167

426

155.2%

Operating cost

3,069

1,182

1,395

1,780

1,123

2,043

81.9%

Operating gross profit

1,827

993

1,125

1,090

1,081

796

(26.4%)

142

57

40

49

50

44

(13.5%)

Fund management fees and others

Operating cost
Operating gross profit
２． Investment operation

Operating revenue
Cost of securities soldInvestment write-offs and Provision forallowance for possible investment losses
Fund interests losses etc.

３． Others
Operating revenue
Operating cost

5

6

5

7

10

12

25.1%

136

51

34

41

40

31

(23.4%)

Operating revenues

5,403

2,475

2,760

3,089

2,409

3,017

25.2%

Operating cost

3,074

1,188

1,401

1,788

1,133

2,056

81.4%

Operating gross profit

2,328

1,286

1,359

1,301

1,276

961

(24.6%)

Operating gross profit

Total

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

- 37 -

5. Appendix - Business field

Private equity investment
JAIC provides growth capital in venturecompanies and small and medium sizedenterprise (“SME”) with high growthpotential, as well as to SMEs withsuccession problem.
After the investment, JAIC is committed toprovide various support to achieve growthstrategies of the company by utilizing
JAIC’s resources in Japan and elsewhere in
Asia.

Strategic investment

Project oriented investment

Strategic investment in partnercompanies that correspond toselected themes of JAIC.

JAIC has been investing to renewable energy
industries represented by solar energy as well as
to healthcare industry such as nursing facilities
and facilities for persons with disabilities.

JAIC provides “hands-on”
support to partner companies
to improve its businesspromotion and financing
activities, etc.

Financial Results Overview for Year Ended FY Mar. 2023

In addition to above, JAIC is determined toinvest to new areas such as smart-agri business
represented by vegetable plant and logistic
industry such as distribution center where
JAIC’s accumulated expertise can be leveraged.

© Japan Asia Investment Co., Ltd. 2023

- 38 -

5. Appendix - Profit structure – Private equity investment•

Private equity investment is an investment in promising companies centered on venture companies and small and mediumsized enterprises in the Asian region including Japan. We support investee companies to increase their corporate value andobtain capital gains.

•

We also perform intermediary business as an FA based on the needs of M & A obtained through our investment activities.

•

There are two types of private equity investments. One is "strategic investments" in partners of project-oriented investment
and the other is "financial investments".

•

For investees of strategic investments, we not only support them as shareholders, but also manage projects together aspartners and support their growth.

•

For investees of financial investment, we provide not only the listing support but also provide overseas expansion support andsales support. We utilize our experience and wide network which we have built up through many years of investment activities
when we support our investees. To that end, we are building a network in Asia by forming business alliances with government
agencies in China and partner companies in Asian countries.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

- 39 -

5. Appendix - Profit structure – Project oriented investment•

We invest in SPCs (special purpose companies) that own facilities such as power plants, factories, residential facilities andwarehouses. We construct these facilities and receive the profits generated by the operation of the facilities in proportion to
the investment. In some cases, these facilities are sold for profits after completion.

•

We invest in projects such as renewable energy, healthcare (facility for the elderly, group homes for the disabled), smart
agriculture (vegetable plant), and distribution center (logistics warehouse).

•

We are pursuing high profitability with a small amount of investment funds by procuring non-recourse loans from financial
institutions. Most of the funds for the construction and operation of the project is procured by these loans.

•

In addition, in order to flexibly invest in projects in various fields, we collaborate with venture companies that are familiar withproject planning and development.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

- 40 -

5. Appendix - Core competence
Historical background in Asian region
Since its establishment in 1981 by the Japan
Association of Corporate Executives (Keizai

Capability to capture up-to-datebusiness information

Doyukai), JAIC has contributed to economic

Through the activity of exploring promisingover 35 years which led to high namecompanies and investment opportunities,

recognition.

exchange between Japan and Asian countries

JAIC has capability to capture highly
professional and cutting-edge information
on various corporates.

Expertise to structure sophisticatedfinance scheme
JAIC’s accumulated invested volume inside andoutside of Japan is Japanese Yen 330 billion.

Wide range of network with venture companies

For the project oriented investment, in addition
JAIC has track record of leading more than 300 invested venture

to providing direct equity investment, JAIC has

companies to “Going Public”. Through the long time investment

been arranging various financing scheme

activities, JAIC enjoys close relationship with wide range of venture

utilizing project-finance approach and leveragecompanies. Based on this intangible asset, JAIC is utilizing thefinancing together with financial institutions.

network to create value for invested companies through businessmatching and cultivating new business theme for JAIC’s own.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix – Efforts for SDGs
Becoming an SDGs investment company as our core value, we will thoroughly carry out
investment activities with a strong awareness of SDGs based on our management policy.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

- 42 -

5. Appendix - Company data (as of March 31, 2023)
Company name

Japan Asia Investment Co., Ltd.

Abbreviation; JAIC

Head office

2F Medical Friend Building, 3-2-4 Kudn-kita, Chiyoda-ku, Tokyo 1020073, Japan

Established

July 10, 1981

Paid-in capital

5,426 million yen

Listed market

Tokyo Stock Exchange, Standard Market (Securities code 8518)

Employees

43 (Consolidated) / 22 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

Chairman of the Board:Yoshiaki Kawamata [Outside/Independent]

President & CEO:Tetsuro Shimomura

Managing Executive Officer :Masafumi Hatta
Chairman of Audit & Supervisory Committee:Kazunori Omori
Member of Audit & Supervisory Committee:Hitoshi Yasukawa [Outside/Independent]

Financial Results Overview for Year Ended FY Mar. 2023

:Tadashi Nunami[Outside/Independent]:Harumi Katagiri[Outside/Independent]© Japan Asia Investment Co., Ltd. 2023

- 43 -

Disclaimer

The information in this document is for presentational purposes only and is not an
inducement to invest in securities issued by JAIC.



Any forward-looking statements in this document are based on materials available at thetime of its compilation and no guarantee can be made as to the continued accuracy andreliability of the material. The contents may be changed without prior notice. Risks anduncertainties including changes to economic circumstances may cause results andprojections to differ materially from those presented in the document.



JAIC owns all copyrights and other rights to all information contained in this material,and it is prohibited to copy or divert it without the permission of JAIC.



The figures in this document are based on consolidated financial statements prepared inaccordance with the previous accounting standards.

This document has been translated from the Japanese original for reference purposes
only. In the event of any discrepancy between this translated document and theJapanese original, the original shall prevail. JAIC assumes no responsibility for thistranslation or for direct, indirect or any other forms of damages arising from thetranslation.

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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https://jaic-vc.co.jp
Contact to:
Kenji Kishimoto, Executive Officer
Miyuki Maruyama, Administration GroupIR e-mail : ir@jaic-vc.co.jp

Financial Results Overview for Year Ended FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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