Financial Results Overviewrdfor 3 Quarter Ended
December 31, 2022
Japan Asia Investment Co., Ltd.
(JAIC) (TSE 8518)
Announcement date : February 14, 2023

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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Contents
1

Summary

P3

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

P4

3 Business plan progress report

P9

4 Result forecasts

P17

5 Appendix

P21

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

Financial Results Overview for 3rd Quarter of FY Mar. 2023

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1. Summary
 Cumulative Results for the current quarter (year-on-year)•

Operating revenue was ¥ ２，６８８ million (up, 53.4 %), quarterly net loss attributable to owners of parent was ¥ (80) million (up,¥127 million)•

Sales of unlisted shares progressed in Japan and overseas. Capital gains from 4 project-oriented investments contributed.
1 of the 4 projects was sold in the previous fiscal year.

•

Provisions and project costs increased operational cost. Strong capital gains compensated for the operational cost and reduced
the deficit.

 Business plan progress report•

TMS Co., Ltd. achieved IPO in Nov. 2022. First price multiple* reached 30.0 times.
* First price multiple = Market value of shares held by the Group calculated at first price/Total our acquisition cost.

•

Established second fund which supporting business succession needs and increased commitment amount of the fund to ¥ 2.7
billion•Invested in solar power systems with storage batteries installed on the rooftops of distribution centers•

Posted gains from investment exits of 1 logistic warehouse located in Hidaka City, Saitama and 1 facility for the elderly locatedin Minato-ku, Minami Aoyama•

Anime Festival Asia, a project-oriented investment in entertainment contents, held in November at Singapore, with a record
number of visitors.

 Result forecasts•

No revision on the result forecasts disclosed in November 2022
Operating revenue of ¥3,1５0 million （cumulative progress rate for the third quarter, 85.4％）, net profit attributable to ownersof parent of ¥160 million （compared to cumulative results for the third quarter loss of ¥ (80) million）•

Results for the third quarter were lower than expected because of provisions and project costs.

•

JAIC plans to increase sales of unlisted shares in Japan and overseas in the fourth quarter to achieve the result forecast.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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2. Results for the current quarter
Outline of results

P5

Break down of operating revenue & operating cost

P8

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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

FY 2022 FY 2023
(3Q)
(3Q)

ChangeOperating revenue

1,752

2,688

53.4%

Operating cost

1,030

1,774

72.2%

Operating gross profit

722

914

26.6%

SG&A expenses

838

864

3.1%

Operating income

(116)

49

-

Ordinary income

(116)

17

-

Profit attributable to owners ofparent

(207)

(80)

-



Factors for increased operating revenue• Private equity investment; Sales of unlisted shares, which were relatively large investment amounts, progressed in Japanand overseas.
• Project-oriented investment; Sales of 4 projects, including 1 project sold in the previous fiscal year, contributed.

Factors for decreased deficit• Project costs and provisions increased operating cost.
• Strong capital gains compensated for the increased operating cost and reduced the deficit.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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

FY 2022

Total assets

Cash and deposits

14,9722,740

FY 2023 (3Q)

13,5172,841

Changefluctuation factors(billion yen)

(9.7%)
repayments of loan (0.8),
execution of investments &3.7% loans (1.7), expenses etc.(0.7),
collection +3.3

Project oriented investment securities &
loans

6,781

5,878

execution of investments &loans +1.4, fund interests(13.3%) income +0.1, distribution &collection (2.4)

Strategic investment securities in partnercompanies

1,783

1,194

(33.0%) collection (0.5), unrealized

execution of investments +0.2,
gain (0.3)

execution of investments +0.4,
distribution &(4.8%) collection (0.6), unrealized gain
+0.4, allowance (0.3)

Financial investment securities after
deducting allowance for possible
investment loss

3,029

2,882

Loans payable

5,943

5,137

(13.6%) repayments of loan (0.8)

Total shareholders' equity

7,779

7,772

(0.1%) +0.07

loss (0.08), unrealized gain

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 remained flat. Losses were incurred, however, unrealized gains on listed shares increased.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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

FY 2022 (3Q)

FY 2023 (3Q)

Operating cash flow

(542)

517

Investing cash flow

117

(2)

Financing cash flow

(1,007)(806)

Change in net cash flow

(1,409)

(263)

1,891

2,134

Cash & cash equivalents at end of period

Operating cash flow; net cash turned profitable because profit before income tax increased and 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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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

（JPY million）

Project oriented investment

FY 2022 (3Q) FY 2023 (3Q) FY 2022 (3Q) FY 2023 (3Q) FY 2022 (3Q) FY 2023 (3Q)
1,752

2,688

1,008

1,936

744

752

Fund management fees etc.

119

103

113

97

5

5

Proceeds of sales of securities

1,501

1,983

844

1,833

657

149

Fund interests income etc.

91

568

40

0

51

567

Other operating reveue

39

34

9

4

29

29

1,030

1,774

444

1,397

585

376

Cost of securities sold

776

1,019

266

929

509

90

Investment write-offs and Provision forallowance for possible investment losses

139

450

139

450

-

-

Fund interests losses etc.

107

293

35

14

71

279

Other operating costs

7

9

2

2

4

6

722

914

563

539

159

375

Operating revenue

Operating cost

Operating gross profitPrivate equity investment

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

Of operating revenue, proceeds of sales of securities increased. JAIC sold shares of 1 strategic investee company through M&A in Japan. Salesof unlisted shares, which were relatively large investment amounts, progressed in China.

•

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

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

Of operating revenue, proceeds of sales of securities decreased with a smaller number of projects sold. In the 3Q of the previous fiscal year,
JAIC sold 1 mega solar project and partially sold 1 logistic warehouse. In the 3Q of the current fiscal year, JAIC sold 1 mega solar project.

•

Of operating revenue, fund interest income etc. increased because of capital gains of 3 projects such as 2 logistic warehouses, including 1
facility sold in the previous fiscal year, and 1 facility for the elderly.

•

Of operating cost, fund interest losses etc. increased because of losses incurred from vegetable plant project and initial costs from projects inthe early stage of launch.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Business plan progress report
Action plan

P10

Private equity investment

P11

Renewable energy

P13

Distribution centre (logistics warehouse)

P14

Healthcare (facility for the elderly)

P15

New investment area

P16

Financial Results Overview for 3rd Quarter of FY Mar. 2023

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3. Business plan progress report – Action plan
Action plan for 3 years

Progress in second year (9 months since Apr. 2022)

 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.

 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

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.

 Invested in solar power systems with storage
batteries installed on the rooftops of distribution
centers
 Sold Mega solar power plant in Iwaki City, Fukushima
 Invested in biomass power generation project in Mie

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.

 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

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

Sold the facility in Minamiaoyama, Minato-ku andposted fund interest profit

Healthcare (grouphome for thehandicapped)

Invest in 50 projects by originating funds from majorbanks and leasing companies Built up 3 group homes
 Established a total of 10 group homes.
 2 group homes were established by the fund which
JAIC invested with a leasing company etc.

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 2 entertainment contents
 Anime Festival Asia was held with a record number ofvisitors.
 Invested in a shared atelier project in Fujisawa City,
Kanagawa

Private equity
investment

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Business plan progress report – Private equity investment
TMS achieved IPO

Company NameTMS Co., Ltd.

Ticker symbol

4891

IPO date

Nov. 22, 2022

Stock market

TSE GrowthBusiness

Research and development of drug products, quasi-drugs, (anofficial drug classification approved by Japanese MHLW forcompounds with mild pharmacological activity), drug substances,medical devices, and medical commodities

URL

https://www.tms-japan.co.jp/en/

Xseed High Growth Fund, managed by one of our subsidiaries, invests in TMS.

First price multiple* reached 30.0 times.
* First price multiple = Market value of shares held by the Group calculated at first price/Total our acquisition cost.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Business plan progress report – Private equity investment
Established second fund which supporting the businesssuccession needs and increased the commitment amount
Main portfolio of 1st fund

Outlie of 2nd fundName

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

2,701 million yen [as of Dec. 2022]

Limited Partners
Investment target

Aozora Bank, Ltd., Gifu Shoko Credit
Union, Towa Bank, Tottori Bank, JAIC,
Japan Post Bank
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.

In December 2022, the Fund increased the commitment amount by 0.9 billion. Size of the fund are to ¥ 4.0
billion at final close.



Mainly invest in small cap zone and collaborate with regional financial institutions nationwide to ensuresmooth business succession of SMEs



1st fund was established in June 2017. The 1st fund invested in 8 companies and has succeeded in taking
over the business of 3 companies.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Business plan progress report – Renewable energy
Invested in 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.

Combined and efficient operation of solar panels installed on the rooftop, storage batteries, and commercial powersources

A low environmental-load distribution center that uses sunlight to cover 50% of the power used by the room- temperaturefacility

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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Business plan progress report – Logistic warehouse
Received profit dividends fromthe sale of KIC Sayamahidaka Distribution Center

Strategic investee;
KIC Holdings Inc.

Location

Hidaka City, Saitama

Accessapproximately 0.5 km fromthe Ken-O Expressway"Sayamahidaka IC",
approximately 4.8km from
Seibu Shinjuku Line "Sayama
City" Station

Outline ofwarehouse

Total floor space: 15,113㎡,
4 floors above ground

Investment
execution

Jan. 2021

Completion

Apr. 2022

Investment
exit

Jun. 2022

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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3. Business plan progress report – Facility for the elderlies
Posted fund interest profits from the sale of facility
for the elderlies in Minamiaoyama, Minato-ku
Name

Plaisant Luxe Minami Aoyama
about 15 minutes from Tokyo
Metro Hibiya Line Hiroo Station,
17 minutes from Tokyo Metro

AccessChiyoda Line Omotesando Station,
about 15 minutes from Minami
Aoyama 7-chome bus stop, on
foot
Site area: 1,691.52㎡, Reinforced
concrete construction, 5 floors

Outlineabove ground,
Paid nursing home for the elderly(Capacity 61 people）

Investment
execution

Jan. 2021

Completion

May. 2022

Investment
exit

Jun. 2022

Financial Results Overview for 3rd Quarter of FY Mar. 2023

Partner company;
AIP Healthcare Japan GK© Japan Asia Investment Co., Ltd. 2023

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3. Business plan progress report – New investment area
”Anime Festival Asia Singapore 2022”
held with a record number of visitors

Partner company;
PIA Global
Entertainment
Corporation



JAIC participated in “AFA”, one of the largest J-POP cultural events in Southeast Asia, as an executive committee member.



SOZO PTE LTD. organized AFA. PGE also participated as an executive committee member.



AFA was held in Singapore from November 25 to 27, 2022, with a record 145,000 visitors.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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4. Result forecasts
Business policy for FY Mar. 2023

P18

Breakdown of result forecast

P19

Cautionary statements

P20

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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4. Result forecasts for FY Mar. 2023 - 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 3rd Quarter of 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. Result forecasts for FY Mar. 2023
- Breakdown of result forecast(million yen)

Result forecast
FY2023(Revised on '22
Nov.)

Actual
FY 2023 3Q

achievement
ratio

Operating revenue

3,150

2,688

85.4%

Operating cost

1,690

1,774

105.0%

Operating gross profit

1,460

914

62.6%

SG&A expenses

1,140

864

75.9%

Operating income

320

49

15.5%

Ordinary income

280

17

6.3%

Profit attributable toowners of parent

160

(80)

-



No revisions on result forecast revised in November 2022.

Results for the third quarter were lower than expected because of provisions and project costs.



JAIC plans to increase sales of unlisted shares in Japan and overseas in the fourth quarter to achieve the result forecast.

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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4. Result forecasts for FY Mar. 2023 - 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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix
Renewable energy projects

P22

List of project oriented investments

P23

Strategic investment

P27

Asia network

P28

Funds & investment activities

P29

Business results & financial position

P30

Break down of operating revenue & operating cost

P31

Business field

P32

Profit structure

P33Core competence

P35

Efforts for SDGs

P36

Company data

P37

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Renewable energy projects(as of December 2022)
Mega solar projects
Started electricity sales 9 projects (11 power plants) 22.2 MW
Under construction or under planning
4 projects 8.5 MW
Total
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

Aomori, Bio gas,
1project 0.03MW

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

Hokkaido, Mega Solar,
1 project 2.3MW

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

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

Kumamoto, Mega Solar
1 project 3.1MW

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

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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - List of project-oriented investments(as of December 2022)
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

Under construction

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 3rd Quarter of FY Mar. 2023

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5. Appendix - List of project-oriented investments(as of December 2022)
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 3rd Quarter of 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 December 2022)
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

Built up in Sep. 2022

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
8-story complex facility with a capacity of
100 people

20 rooms for residents, 2 rooms for shortstay

Financial Results Overview for 3rd Quarter of FY Mar. 2023

Current status
Under construction

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 December 2022)
Type ofproject

No.

Type ofproject

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

Others

Details of projectCurrent status

1

Aichi

Commercial building, site area 1,752 m², 1 basement floor, 6
floors above ground

Opened*investment in building which has
already started operation

2-

Entertainment contents, “Naked Flowers For You”

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

3

Kanagawa

A shared atelier project to renovate an abandoned factory

Under planning

4-

Electric assisted bicycle subscription service

Executed investment in Aug. 20225

Non-disclosed

Non-disclosed

Non-disclosed

6Non-disclosed

Non-disclosed

Non-disclosed

7

Singapore

Anime Festival Asia Singapore 2022

held on Nov. 25, 26 and 27, 2022

Financial Results Overview for 3rd Quarter of 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)

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

366 Co., Ltd.

cycloop Co., Ltd.

Partner company in perpetual
memorial tree burial project

Partner company in electric assisted
bicycle subscription service

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Asia network

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2022(3Q)

FY 2023(3Q)

New & increased funds

1,000

2,000

1,359

151

1,001

1,001

2,701

AUM of funds - total *1

19,15016,494

17,39016,45016,46316,091

14,813

AUM of funds - JAIC *1

5,867

5,344

5,163

5,434

4,953

4,805

3,378

Execution of investnemts (Total)*2

3,887

3,749

3,374

1,767

3,420

2,909

2,330

Balance of investments (Total)*2

13,981

13,951

15,101

12,855

13,784

14,623

13,697

Execution of investnemts (project oriented investment)*2

2,681

3,612

2,150

1,445

1,938

1,427

1,132

Balance of investments (project oriented investment)*2

3,582

5,514

6,696

6,088

6,344

6,787

6,584

Execution of investnemts (private equity)*2

1,205

136

1,224

322

1,482

1,482

1,198

Balance of investments (private Equity)*2

10,398

8,437

8,405

6,767

7,440

7,836

7,113

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 3rd Quarter of 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 2022(3Q)

FY 2023(3Q)

Business results
Operating revenues

5,403

2,475

2,760

3,089

2,409

1,752

2,688

Operating gross profit

2,328

1,286

1,359

1,301

1,276

722

914

SG&A expenses

1,311

1,109

1,094

1,086

1,189

838

864

Operating income

1,017

177

265

214

86

(116)

49

Ordinary income

954

83

140

173

61

(116)

17

Net income

874

578

302

144

49

(207)

(80)

Cash and deposits

7,308

5,564

3,920

3,699

2,740

2,423

2,841

Operational investment securities and operatingloans of project oriented investment

3,582

5,514

5,437

5,583

6,781

6,179

5,878

Operational investment securities of strategic
investment in partner companies

373

373

1,005

1,155

1,783

1,810

1,194

Operational investment securities of financial
investment after deducting allowance for possible
investment loss

5,657

4,765

4,282

3,111

3,029

3,007

2,882

Loans payable, bonds & bonds with subscription
rights to shares

11,954

9,784

8,166

6,950

5,943

5,943

5,137

Total shareholders' equity

6,545

6,840

7,223

7,338

7,779

7,449

7,772

Total assets

19,22017,30515,80014,657

14,972

14,124

13,517

Financial position

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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

FY 2018

FY 2019

FY 2020

FY 2021

FY2022(3Q)

FY 2022

FY2023(3Q)

Change(%)

１． Fund management operation
Fund management fees and others

277

241

199

169

154

119

103

(13.7%)

Success Fees

86

-

-

-

-

-

-

-

Operating revenue

364

241

199

169

154

119

103

(13.7%)

-

-

-

-

-

-

-

-

364

241

199

169

154

119

103

(13.7%)

Proceeds of sales of securities

3,219

1,746

2,349

2,221

1,573

1,501

1,983

32.0%

Fund interests income etc.

1,677

429

172

648

631

91

568

517.8%

4,897

2,176

2,521

2,870

2,204

1,593

2,551

60.1%

2,469

554

965

1,249

810

776

1,019

31.4%

562

579

245

194

145

139

450

223.7%

36

49

184

336

167

107

293

174.2%

Operating cost

3,069

1,182

1,395

1,780

1,123

1,022

1,764

72.5%

Operating gross profit

1,827

993

1,125

1,090

1,081

571

786

37.8%

142

57

40

49

50

39

34

(13.3%)

5

6

5

7

10

7

9

30.7%

136

51

34

41

40

32

24

(23.4%)

Operating revenues

5,403

2,475

2,760

3,089

2,409

1,752

2,688

53.4%

Operating cost

3,074

1,188

1,401

1,788

1,133

1,030

1,774

72.2%

Operating gross profit

2,328

1,286

1,359

1,301

1,276

722

914

26.6%

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
Operating gross profit
Total

Financial Results Overview for 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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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 3rd Quarter of 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

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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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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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
exchange between Japan and Asian countries
over 35 years which led to high nameThrough the activity of exploring promising

recognition.

companies and investment opportunities,
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 3rd Quarter of 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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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5. Appendix - Company data (as of December 31, 2022)
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

39 (Consolidated) / 21 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

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

President & CEO:Tetsuro Shimomura

Managing Executive Officer :Masafumi Hatta
Chairman of Audit & Supervisory Committee:Kazunori Omori
Member of Audit & Supervisory Committee

Financial Results Overview for 3rd Quarter of FY Mar. 2023

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

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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 3rd Quarter of 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 3rd Quarter of FY Mar. 2023

© Japan Asia Investment Co., Ltd. 2023

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