Financial Results Overview
for the 3rd Quarter Ended
December 31, 2019Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: February 14, 2020
The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued
accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties including changes to economic
circumstances may cause results and projections to differ materially from those presented in the document.
The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAIC.
The figures in this document are based on consolidated financial statements prepared in accordance with the previous accounting standards.

http://www.jaic-vc.co.jp-1-

Contents

1 SummaryP3

2 Results for Current Quarter (Cumulative Total)

P4

3 Full-year result forecasts

P12

4 Business Report

P15

5 Appendix

P22

NOTE: The figures in this document are based on consolidated financial statements
prepared in accordance with the previous accounting standards.
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1. Summary
 Results for Current Quarter (Cumulative Total)• Revenues decreased 22.8% year on year; deficit expanded ¥ 555 million year on year.
• Profit from private equity funds managed by other companies decreased.
 Full-year result forecasts• Result forecasts have been revised downward to operating revenue of ¥2.6 billion (down 25.7%) andfinal profit of ¥0.1 billion (down 80.0%).
• The gains on sale of shares expected for the fourth quarter will likely decline more than initiallyanticipated.
• While the decline will be partly covered by the sale of mega solar projects and the sales of othershares and non-operating assets, all the decline is unlikely to be covered.
 Business Report• 3 new investments of mega solar projects with a ¥30-level FIT price have been executed.
• 4 cases of “strategic investment” in a partner company in project oriented investment have been
carried out.
• 3 IPOs in 3Q: While FunPep Co., Ltd. received approval for listing, the company has postponed
listing procedures.
• Investment in logistics warehouse construction projects and a medium-term project oriented
investment in income property (commercial building) were carried out; cultivated new fields for
project oriented investment
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2. Results for Current Quarter (Cumulative Total)

Outline of results

P5

Break down of operating revenue & operating cost

P8

Progression status of KPI

P9

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2. Results for Current Quarter (Cumulative Total) – Outline of results – I/SFY Mar 2019 (3Q)

FY Mar 2020 (3Q)

(Actual)(Actual)AmountAmount(million yen)(million yen)

Change1,214937(22.8%)

Operating cost

857

815

(4.9%)

Operating gross profit

356

121

(65.9%)

SG&A expenses

816

780

(4.4%)

Operating income

(459)

(658)

-

Ordinary Income

(512)

(753)

-

Profit attributable to owners of parent

(197)

(752)

-

Operating revenue Year on year change: 22.8％ (¥277 million) decrease in revenue; ¥555 million increase in deficit
 Attributable mainly to a decline in income from private equity funds managed by other companies.
Effects on results: Operating revenue: decrease by ¥201 million; Extraordinary income: decrease by¥425 million

http://www.jaic-vc.co.jp-5-2. Results for Current Quarter (Cumulative Total) – Outline of results – B/S
As of Mar 2019

FY Mar 2020 (3Q)

(Actual)(Actual)AmountAmount(million yen)(million yen)

Change17,305

14,972(13.5%)(a) Cash and deposits

5,564

2,125

(61.8%)(b) Project oriented investment securities & loans

5,514

6,281

13.9%

373

855

129.4%

4,765

4,644

(2.6%)（c） Loans payable

9,784

8,166

(16.5%)

Total shareholders' equity

6,840

6,427

(6.0%)(a) + (b) - （c）

1,294

240

(81.4%)

Total assets

Strategic investment securities in partner companies
Private equity investment securities after deducting
Allowance for possible investment loss except strategic
investment in partner companies

 Outstanding project oriented investment securities & loans: The balance increased due to steadyinvestment and loan execution
 Outstanding strategic investment: The balance increased due to 4 investments
 Financial balance: Maintained a positive balance despite a decrease due to progress of investment(Cash & deposits + project oriented investment – loans payable)

http://www.jaic-vc.co.jp-6-

2. Results for Current Quarter (Cumulative Total) – Outline of results – C/F(JPY million)

FY Mar 2019 (3Q)

FY Mar 2020 (3Q)

(Actual)(Actual)Operating CF

994

(950)

Investing CF

703

64

Financing CF(2,173)(1,617)(491)(2,524)

4,265

1,557

Change in Net CF
Cash & Cash Equivalents at End
of Period Operating CF: Net cash used was 950 million yen
Ended in negative cash flow due to the implementation of investment
 Investing CF: Net cash provided was 64 million yen
Proceeds from redemption of investment fund decreased year on year Financing CF: Net cash used was 1,617 million yen
The extent of negative cash flow improved year on year due to the
reduction of the repayment amount to correct the financing policy of placing priority on
repayment
http://www.jaic-vc.co.jp-7-

2. Results for Current Quarter (Cumulative Total) –Break down of operating revenue & operating cost
Private equity investment

Total（JPY million）

FY Mar 2019 (3Q) FY Mar 2020 (3Q) FY Mar 2019 (3Q) FY Mar 2020 (3Q) FY Mar 2019 (3Q) FY Mar 2020 (3Q)
(Actual)(Actual)(Actual)(Actual)

937

1,055

798

158

138

Fund management fees etc.

187

153

186

151

1

2

Proceeds of sales of securities

602

566

579

566

23

0

Fund interests income etc.

391

187

276

71

114

116

Other operating reveue

32

29

13

9

19

19

857

815

841

700

16

115

272

436

255

436

16

0

540

237

540

237

-

-

Fund interests losses etc.

40

137

40

22

-

115

Other operating costs

4

4

4

4

-

-

356

121

213

98

142

23

Operating Cost
Cost of securities soldInvestment write-offs and Provision forallowance for possible investment losses

Operating Gross Profit(Actual)(Actual)1,214

Operating revenue

Project oriented investment

Private equity investment;•
Of operating revenue, fund interests income etc. decreased due to a drop in profit from investment funds
managed by other companies.
•
Of operating cost, cost of securities sold increased reflecting a decline in sales of listed shares with higher
investment returns and the recording of a loss on sales by prioritizing liquidation of large-scale unlisted shares.
Meanwhile, investment write-offs and provision for allowance decreased.
Project oriented investment;•
Fund interests losses etc., an operating cost item, increased due to advance expenditure for vegetable factory.

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2. Results for Current Quarter (Cumulative Total) –Progression status of the medium-term business plan – Private equity
Item

Plan

Sale ofexisting
portfolio

In addition to achieving sale proceeds from
IPOs, liquidize unlisted shares and nonoperating assets.

Establishm
ent offunds

Establish two funds those aim to assist
overseas expansion of Japanesecompanies and foreign direct investment
into Japan.

•
Network,
M&A

Investment
s in partnercompanies•

Strengthen external networks (in Japanand Asia) and establish a global
support structure.
Start initiatives in FA business centeredaround cross-border M&As.

Create a new bankable (i.e., debt financing
from financial institutions is possible)
business and carry out strategic
investments in partner companies in
addition to investing in projects of thebusiness.

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

Progress• Shares of Japanese companies that carried out IPOs
were sold and a large Chinese investee was liquidated.
• As gains on sale of shares expected for the fourth
quarter will likely decline significantly, the initial results
forecast has been revised downward.
• Solicitation of investor candidates underway, aiming forestablishment during the current fiscal year.
• The establishment of a fund to support foreign direct
investment into Japan has been delayed due todifference in the way of thinking between we andinvestors.
• Cooperation agreements were signed with China's Xi'an
Hi-Tech Industries Development Zone, Yantai
Investment Development Board and Wuhan Municipal
People’s Government respectively.
• Cooperation agreements were signed with local venture
capital and local security company in Bangkok.
• M&A deals from Asian business partners being
introduced to listed Japanese companies using ourdomestic network.
• Project to build a group home for persons withdisabilities started in October 2019.
• We carried out 4 strategic investment deals:- Morihisa Engineering Co., Ltd. (plant factories)- Social Inclu Co., Ltd. (group homes)- Smart Solar Corporation (mega solar projects)- MD-Farm (strawberry cultivation system)-9-2. Results for Current Quarter (Cumulative Total) –Progression status of the medium-term business plan – Project oriented investment
Item

Plan

RenewableenergyPlace top priority on mega solar projects
but continue aggressive investment in
new biogas and biomass projects as wellsince investment opportunities in highprofitability projects have time
constraints.

Smartagriculture

Put the first vegetable factory on track
and invest in subsequent projects.

Progress•

Investment executed in operator of intermediate
processing facility for waste materials to be used as fuelfor biogas power plants.

•

Investment executed in new 3 mega solar projects witha ¥30-level FIT price.

• No. 1 plant succeeded in developing sales channels tolarge restaurant chains. However, as sales have been
lower than the plan, it will be delayed until April 2020 toachieve profitability on a monthly basis as a result of fullscale operations.
• The plan is to invest in No.2 Plant after making
preparations to expand the scale of No. 1 Plant.

Healthcare

Other newinvestment
field

Focus on profitability instead of quantity
and invest selectively in nursing carefacility development projects.

Cultivate new fields where investment in
profitable projects is possible

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

Investment in a project decided.
Investment planned to be executed in 4Q after developer
works out overall plans for the project.
• Executed medium-term investment in income property(commercial building) in Japan.
• Executed investment in logistics warehouse construction
projects in Japan.
- 10 -

2. Results for Current Quarter (Cumulative Total)– Progression status of key performance indicators

Strategy

Expand stable revenue
from project oriented
investment assets

Replacement of private
equity investment assets

Key goal indicator

FY2021

Final profit

0.7 billion yen

ROE

9%
KPI
FY Mar. 2020-3Q

KPI
FY Mar. 2021

Balance of project oriented investment
assets

6.2 billion yen

9.0 billion yen

Expected cumulative profits from project
oriented investment to be long held (*)

5.9 billion yen

20.0 billion yen

Balance between the sum of cash anddeposits and project oriented investment
assets and borrowings+0.2 billion yen+5.6 billion yen

Promotion of early liquidizing andmonetization of assets except strategic
investments etc.

Balance of investment
4.6 billion yen(net of provisions)

Balance of investment
1.0 billion yen(net of provisions)・Establishment of funds for new
investments
・Implementation of strategic investments

Balance of investment
0.8 billion yen

Balance of investment
1.0 billion yen

Measures(*) Estimation of cumulative profits from projects managed by JAIC Group under certain hypotheses when assuming that these projects will continue to be held.
(*) Excluding six projects to be sold during the fiscal year ending March 2020.
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3. Full-year result forecasts
Cautionary Statements with Respect to Forward-looking Statements

P13

Full-year result forecasts

P14

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3. Full-year result forecasts - Cautionary Statements
 The private equity investment business conducted by the Groupwill be significantly affected by changing factors such as stock
markets, given the characteristics of the business. In addition, it
has been difficult to forecast results reasonably in the rapidlychanging 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 AccountingStandard” and any other forward-looking statements in thisdocument are based upon the information currently available to
JAIC and certain assumptions. The achievement is notpromised. Various factors could cause actual results to differ
materially from these result forecasts.
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3. Full-year result forecasts –Result forecast consolidated under the Previous Accounting Standard
Result forcast
FY2020

Revised result forcast FY2020(Disclosed on May(Disclosed on Feb 14, 2020)

15, 2019)
AmountAmountChangeChange(million yen)(million yen)(million yen)(%)

Operating revenue

3,500

2,600

(900)

(25.7%)

Operating cost

1,600

1,400

(200)

(12.5%)

Operating gross profit

1,900

1,200

(700)

(36.8%)

SG&A expenses

1,100

1,130

30

2.7%

Operating income

800

70

(730)

(91.3%)

Ordinary Income

650

(60)

(710)

-

500

100

(400)

(80.0%)

Profit attributable to ownersof parentBreakdown:
Proceeds of sales of
securities(2,350)
Proceeds of sales ofmega solar projects ＋1,350
Others
+ 100
Total
(900)
Breakdown:
Capital gains
of securities(1,810)Capital gains
of mega solar projects ＋960
Extraordinary income &Decrease of corporate
income tax+ 310
Others
+ 140
Total
(400)

Result forecast has been revised downward to operating revenue of ¥2.6 billion (down ¥0.9 billion) and final
profit of ¥0.1 billion (down ¥0.4 billion).
The gains on sale of shares expected for the fourth quarter will likely decline more than initially anticipated dueto the postponement of IPOs, drop in sale prices, failure in concluding sale negotiations, worsening of sale terms,
etc.
While the decline will be partly covered by the sale of mega solar projects (sale price: ¥1.35 billion; gains fromsale: ¥0.96 billion), extraordinary income from the sale of non-operating assets and the decline in tax expenses(¥0.31 billion in total), all the decline is unlikely to be covered.

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4. Business report

Private equity investment

P16

Project oriented investment

P19

Asia business networkP21

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4. Business report - Private equity investment – Investment execution

Investment execution : 9 companies, ¥ 977 million
4 strategic investments in partner companies
Smart Solar Corporation

Morihisa Engineering Co., LTD.

Business:
Mega solar power generation related business,
Smart city related business for public facilities andindustrial facilities
Residential solar power generation related businessBusiness:
Development, planning, construction and operationof vegetable factories
Production of high-end vegetables under the brandname “Morvel”.

MDｰFarm

Social Inclu Co., LTD.

Business:
Development and sales of strawberry cultivation
systemAgriculture business support consulting services, etc.
http://www.jaic-vc.co.jp

Business:
Operating “Social Inclue Home”, group homes for
persons with disabilities- 16 -

4. Business report - Private equity investment – Investment execution
5 investments in other private companies
Investment execution case:

Neo Career Co., Ltd.

“「Human」×「Technology」bring individuals valuable futures”• Business development in four areas including the human resources business, HR Tech (IT, Media) business, healthcare business,and global business.
• The services the company provides cover a wide range of areas, including staffing, recruitment consulting, recruitment support,
advertising promotion, media management, outsourced system development, new business development in IT, and HR Tech.
• In the future, the company plans to focus on the HR Tech business in particular, and expand in-house developed products such
as “jinjer” (SaaS platform service for HR), “Calling” (web conferencing system) and “wakumo” (one-off part-time job matching
application).
• In the human resources business, the company focuses on the healthcare field for nursing care providers, childcare workers
and medical service providers.
• Utilizing the know-how acquired in Japan, the company provides recruitment consulting services "REERACOEN" at 21 locationsin 10 Asian countries, as well as business process outsourcing (BPO) services.
http://www.jaic-vc.co.jp- 17 -

4. Business report -Private equity investment – JAIC Backed IPOs

StemRim Inc.

PBsystems, Inc.

Research, development, manufacture and sales ofpharmaceuticals and medical devices that promote
regeneration of damaged tissues by activating andutilizing patient’s own stem cells in the body, andgene therapy products for intractable diseases"Secure Cloud Systems Business" which provides anenterprise's Core Systems as cloud computing systems,and "Emotional Systems Business" which manufacturesand sells VR-theater "4D king“

Stock market: TSE Mothers (4599)
IPO date: 9 August 2019

Stock market: FSE Q-Board (4447)
IPO date: 12 September 2019

Fangdd Network Group Ltd.

Operator of "房多多", china's largest online real estate marketplace

Stock market: NASDAQ Global (DUO)
IPO date: 1 November 2019http://www.jaic-vc.co.jp- 18 -

4. Business report - Project oriented investment – Investment execution

Investment execution : 9 projects, ¥ 1,950 million
No.

Location

Project type

Generation
capacity1

Tochigi

Solar power

2.0MW

New project; FIT ¥32

2

Tochigi

Solar power

2.0MW

New project; FIT ¥32

3

Tochigi

Solar power

2.0MW

New project; FIT ¥36

4

Tokyo

Biogas power

1.6MW

Investment in operator of adjoining waste
processing plants

5

Hyogo

Vegetable factory-

6

Kumamoto

Solar power

11.8MW

7

Aichi

Commercial building-

Mid-term investment in income property

8

Saitama

Logistics warehouse-

Investment in construction project9

Kanagawa

Logistics warehouse-

Investment in construction project

•
•
•

Notes

Additional investment of the factory’s operation
funds
Additional investment; FIT¥36

Investments in 3 mega solar projects with a ¥30-level FIT price are executed.
In the new fields, investments in logistics warehouse construction projects and income property (commercial building)were carried out.
In addition to those listed above, a loan was provided to a project on group home for disabled persons.

http://www.jaic-vc.co.jp- 19 -

4. Business report - Project oriented investment - Renewable energy projects
as of December 31, 2019

Mega solar projects

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

Transferred

12 projects 29.8 MW
12 projects 70.0 MW
24 projects 99.8 MW
56.4MW
22 projects 119.7 MW

Other renewable energy projects

Woody biomass; Started electricity sales 1 project 2.0 MW
Bio gas; Started electricity sales 1 project 0.03 MW
Bio gas; Under construction
1 project 1.6 MW
Wind power; Under planning
1 project at most 25.2 MW
Fukuoka, Solar
1 project
2.9MW

Kumamoto, Solar
1 project 3.1MW
1project 11.8MW

Tokyo, Bio gas,
1project 1.6MW
Kagawa, Solar Mie,
4 projects 8.7MW Woody biomass, 1 project 2.0MW
Mega solar,
1 project 21.8MW
Wind power,
1 project at most 25.2MW

Hokkaido, Solar,
1 project 4.4MW
3 projects 20.0MW
Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
4 projects 10.0MW
Miyagi, Solar,
1 project 2.4MW
Fukushima, Solar,
1 project 1.2MW
2 projects 5.1MW
Tochigi, Solar,
3 projects 6.0MW
Kanagawa, Solar,
1 project 2.4MW* Since our investment ratio differs in each project, the amount of JAIC’s investment or revenues from mega solar projects that are attributable to JAIC are notnecessarily linked to the MW figure of the project.
http://www.jaic-vc.co.jp- 20 -

4. Business report - Asia business network Asia business network,
JAIC's strength, further
strengthened.
 To be used for the launchof M&A business andsupport of investee
companies.
 Cooperation agreement
signed with China's Xi'an
Hi-Tech Industries
Development Zone,
Yantai Investment
Development Board andWuhan Municipal
People’s Government,
respectively.
 Cooperative agreements
signed with local venture
capital and local security
company in Thailand,
respectively.

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5. Appendix

List of project oriented investments

P23

Break down of private equity investment balance

P25

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

P26

Funds & investment activities

P27

Business results & financial position

P28

Break down of operating revenue & operating cost

P29

Core competence

P30

Profit structure

P31

Company data

P33

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5. Appendix – List of project oriented investments
Type ofproject
Solar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]Total amount ofproject [¥ bn.]1

Nishiki-cho, Kuma-gun, Kumamoto

3.1

Started electricity sales in Dec. 201540

approx. 1.05

2

Ichinosekishi Fujisawacho solar power plant

2.3

Started electricity sales in Sep. 201636

approx. 0.73

3Nomaike solar power plant

2.4

Started electricity sales in May. 201736

approx. 0.8

4

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

5Mitakabeike solar power plant

1.5

Started electricity sales in Sep. 201732

approx. 0.5

6Iwate Ichinoseki solar park

2.4

Started electricity sales in Jan. 201836

approx. 0.8

7

Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

8

Nakaoudaike solar power plant

2.4

Started electricity sales in Apr. 201836

approx. 0.86

9

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

10

Higashioudaike solar power plant

2.4

Started electricity sales in Jul. 201836

approx. 0.86

11

Ichinosekishi Suzugasawa solar power plant

2.7

Started electricity sales in Oct.. 2018

36

－

12

Kami solar park

2.4

Started electricity sales in Oct. 201836

approx. 0.96

13

Mombetsu-shi Kodo solar power plant

15.7

Under construction or Under planning40

approx. 6.6

14

Hokkaido

2.0

Under construction or Under planning

36

－

15

Mie

21.8

Under construction or Under planning

24

－

16

Fukushima

2.4

Under construction or Under planning

32

－

17

Fukushima

2.7

Under construction or Under planning

40

－

18

Kumamoto

11.8

Under construction or Under planning

38

－

19

Hokkaido

2.3

Under construction or Under planning

40

－

20

Kanagawa

2.4

Under construction or Under planning

32

－

21

Fukuoka

2.9

Under construction or Under planning

36

－

22

Tochigi

2.0

Under construction or Under planning

36

－

23

Tochigi

2.0

Under construction or Under planning

32

－

24

Tochigi

2.0

Under construction or Under planning

32－

Total 99.8MW [attributable to JAIC 56.4MW]

http://www.jaic-vc.co.jp- 23 -

5. Appendix - List of project oriented investments
Type of project

No.

Woody biomass
Bio gas1

2

Location

Generation Capacity[MW]

Current status

FIT[tax excluded, ¥]Total amount of project [¥bn.]Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018

－

－

Tokyo

1.6

Under construction or Under planning

39－

operator of adjoining waste processing
plants－－0.03

Started electricity sales in Nov. 201839－

At most 25.2

Under construction or Under planning

22－

Aomori Touhokumachi solar power plant

Wind power

Mie

Vegetable plant

Tambasasayama-shi, Hyogo－

Started operation－

Approx. 0.7

Group home

Hamamatsu-shi, Shizuoka－

Under construction－－

Commercial
building

Aichi－

Opened*investment in building which has alreadystarted operation

－

－

1

Saitama－

Under planning

－

－

2

Kanagawa－

Under planning－－

Logistics
warehouse

http://www.jaic-vc.co.jp- 24 -

5. Appendix - Break down of private equity investment balance

Investment balance : 103 companies, ¥8.3 bn.

【Breakdown by area】【Breakdown by industry】

Others; 11co.

0.3bn.
China,HK &Taiwan;36co.

Others;12co.
Service; 1.5bn.
Japan; 15co.
Total
3.7bn.56co.
1.0bn.

Total
103 companies¥8.3bn.
4.3bn.

Precisionmachine;
7co.

QOL;
27co.
3.2bn.

103 companies¥8.3 bn.

0.3bn.

1.0bn.

0.7bn.

QOL
Total
3.2 bn.

1.2bn.

0.7bn.

1.8bn.IT;
42co.

Medical device & service
Environmental equipment & service
Biotech, drug discovery & medicine
OthersAverage investment amount per company (unit: ¥ million):
Japan 66, China, HK & Taiwan 119 / QOL 118, IT 43
http://www.jaic-vc.co.jp- 25 -

5. Appendix – AUM of Funds, Investment balance & balance of operational
investment securities
Investment by fuds
4.4

AUM of Funds¥16.1 bn.

7.1

3.1

1.4

Investment balance¥14.5 bn.

Other
investors'
interests in
1.6
funds
2.8

Principal investment
by JAIC 10.0

Other than consolidated projects
Balance of
operational investment securities(Previous Accounting Standard)

Consolidated projects
4.0 ※

6.0

1.6

¥10.2 bn.

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

JAIC's interests in funds
Others¥12.8 bn.
Balance of
operational investment securities(Fund Consolidated
Accounting Standard)

1.1

Cash etc. in Funds
Accumulated profits, Losses & distributions
6.0

1.6

1.2

1.4

Uncalled commitments to Funds
Note:
Of the principal investment by JAIC, the investment portion in aconsolidated project is deemed investment in a subsidiary under
the fund consolidated accounting standards, and the investment isoffset.
On the other hand, renewable energy power generation andvegetable plant facilities held by consolidated projects are booked
as property, plant and equipment under the fund consolidated
accounting standard.

- 26 -

5. Appendix - Funds & investment activities(JPY million)
New & Increased Funds
AUM of Funds - total

15/3

16/3

17/3

18/3

19/3

-

5,201

500

1,000

2,000

43,89739,33528,753

19,15016,49414,004

9,427

5,867

5,344

AUM of Funds - JAICNew Investnemts (Private Equity)

1,470

1,304

1,131

1,205

136

Balance of Investments (Private Equity)

18,385

15,061

11,981

10,3988,437

New Investnemts (Project oriented investment)

1,257

2,788

3,184

2,681

3,612

Balance of Investments (Project oriented investment)

1,337

3,722

4,576

3,582

5,514

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

20/3(3Q)
2,000
18,062
16,094
5,377
5,191
136
977
8,558
8,298
2,683
1,950
4,836
6,191

19/3(3Q)- 27 -

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

15/3

16/3

17/3

18/3

19/3

19/3(3Q)

20/3(3Q)

Business Results
Operating Revenues

4,532

4,043

3,926

5,403

2,475

1,214

Operating Gross Profit

882

1,554

2,176

2,328

1,286

356

SG&A Expenses

1,433

1,472

1,339

1,311

1,109

816

Operating Income

(550)

82

836

1,017

177

(459)

Ordinary Income

(610)

612

726

954

83

(512)

Net Income

(850)

597

553

874

578

(197)

937
121
780
(658)
(753)
(752)

9,437

8,202

6,213

7,308

5,564

4,931

2,125

1,337

3,722

4,081

3,582

5,514

4,836

6,281

-

100

100

373

373

373

855

10,364

8,126

7,256

5,657

4,765

4,839

4,644

20,193

16,91014,128

11,954

9,784

9,784

8,166

Total shareholders' equity

3,373

4,976

5,686

6,545

6,840

6,255

Total assets

24,396

22,68020,305

19,22017,305

16,646

6,427
14,972Financial Position
Cash and deposits
Operational investment securities and operatingloans of project oriented investment
Operational investment securities of strategic
investment in partner companies
Operational investment securities after
deducting allowance for possible investment loss
(Private equity except strategic investment in
partner companies)
Loans payable, bonds & bonds with subscription
rights to shares

http://www.jaic-vc.co.jp- 28 -

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

16/3

15/3

18/3

17/3

19/3

20/3(3Q) Change(%)

19/3(3Q)

１． Fund management operation

153
153
153

(18.0%)(6.0%)

272

566
187
753
436

579

540

237

(56.0%)

36

49

40

238.7%

1,744

3,069

1,182

852

818

1,690

1,827

993

141

137
811
(57)

53

13

25

142

57

32

(9.1%)

Operating Cost

9

7

6

5

6

4

Operating Gross Profit

44

5

19

136

51

27

29
4
25

Operating Revenues

4,532

4,043

3,926

5,403

2,475

1,214

Operating Cost

3,650

2,488

1,750

3,074

1,188

857

882

1,554

2,176

2,328

1,286

356

Fund management fees and others

571

441

364

277

241

187

Success Fees

63

288

101

86

-

-

Operating Revenue

634

729

466

364

241

187

-

-

-

-

-

-

634

729

466

364

241

187

3,651

2,954

2,275

3,219

1,746

602

193

345

1,159

1,677

429

391

3,844

3,300

3,434

4,897

2,176

994

1,767

1,863

1,423

2,469

554

1,704

569

274

562

168

47

46

3,640

2,481

203

Operating Revenue

Operating Cost
Operating Gross Profit(18.0%)(18.0%)

２． Investment operation
Proceeds of sales of securities (A)Fund interests income etc.
Operating Revenue
Cost of securities sold (B)Investment write-offs and Provision for allowancefor possible investment losses ( C)Fund interests losses etc.
Operating Cost
Operating Gross Profit(52.1%)(24.2%)
60.4%(4.8%)-

３． Others(17.2%)(7.7%)

Total

Operating Gross Profit

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

937
815
121

(22.8%)(4.9%)(65.9%)- 29 -

5. Appendix – Core competence
Historical background in Asian region

Capability to capture up-to-datebusiness information

Through the activity of exploringpromising companies and investment
opportunities, JAIC has capability tocapture highly professional and cuttingedge information on various corporates.

Since its establishment in 1981 by the Japan
Association of Corporate Executives (Keizai
Doyukai), JAIC has contributed to economic
exchange between Japan and Asian
countries over 35 years which led to highname recognition.

Expertise to structure sophisticatedfinance scheme
Wide range of network with venture companies

JAIC has track record of leading more than 300 invested venturecompanies to “Going Public”. Through the long time investment
activities, JAIC enjoys close relationship with wide range ofventure companies. Based on this intangible asset, JAIC is
utilizing the network to create value for invested companies
through business matching and cultivating new business theme
for JAIC’s own.
http://www.jaic-vc.co.jp

JAIC’s accumulated invested volume insideand outside of Japan is Japanese Yen 330
billion.
For the project oriented investment, in
addition to providing direct equity investment,
JAIC has been arranging various financing
scheme utilizing project-finance approachand leverage financing together with financial
institutions.
- 30 -

5. Appendix – Profit structure● Private equity investment

There are the following two types of investment
capital:・Contribution from JAIC’s cash reserves
・Capital that is entrusted for investment byfund investors in Japan and abroad throughthe fundJAIC also invests in the fund and acquires
capital gains according to its investment ratio.

● Renewable energy project investment

The power generation operator procures funds
for the construction of power plants by thefollowing two ways and owns the power plants:
・Investment by JAIC and other investors
・Loans from financial institutions
The generated power is purchased by powercompanies at FIT.
JAIC and other investors obtain stable revenue
from electricity sales according to theirinvestment ratios.

http://www.jaic-vc.co.jp- 31 -

5. Appendix – Profit structure● Fund management
In fund management, there are thefollowing two types of fees:
・Management fee received ascompensation for recurring management
and operation
・Success fees received according to thefund’s performance

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

5. Appendix - Company data (as of December 31, 2019)
Company name

Japan Asia Investment Co., Ltd.

Head office

3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo 101-8570, Japan

Established

July 10, 1981

Paid-in capital

5,426 million yen

Listed market

Tokyo Stock Exchange, 1st Section (Securities code 8518)

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
In charge of New Energy Investment Group:Masafumi Hatta
Chairman of Audit & Supervisory Committee:Kazunori Omori
Member of Audit & Supervisory Committee:Hitoshi Yasukawa [Outside/Independent]:Tadashi Nunami[Outside/Independent]:Harumi Katagiri[Outside/Independent]

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

Abbreviation; JAIC

- 33 -

JAIC

Japan Asia Investment Co., Ltd.
Seiko-Takebashi-Kyodo Bldg., 3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo 101-8570
TEL +81-3-3259-8518 Fax +81-3-3259-8511

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

The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued
accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties including changes to economic
circumstances may cause results and projections to differ materially from those presented in the document.
The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAIC.
The figures in this document is based on consolidated financial statements.
http://www.jaic-vc.co.jp- 34 -