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November 14, 2022
Japan Asia Investment Co., Ltd. (JAIC)Tokyo Stock Exchange Standard Market (Stock code:8518)
Tetsuro Shimomura, President and CEOKenji Kishimoto, Executive Officer+81-3-3221-8518Differences between the “Result Forecast Consolidated under thePrevious Accounting Standard” and the Results for First Half ofFiscal Year ending March 2023 and Notice of Revision on “ResultForecast Consolidated under the Previous Accounting Standard” forFull Year of Fiscal Year ending March 2023
Japan Asia Investment Co., Ltd. (JAIC) hereby announces that, differences
between the “Result Forecast Consolidated under the Previous AccountingStandard” for first half of fiscal year ending March 2023 (from April 1, 2022 toSeptember 30, 2022) that JAIC released on August 12, 2022 and the actual
results disclosed today.
JAIC also announces that, based on the recent business performance etc., JAIC
has revised its “Result Forecast Consolidated under the Previous AccountingStandard” for the full year of fiscal year ending March 31, 2023 (from April 1,2022 to March 31, 2023), previously announced on May 13, 2022.
The “Result Forecast Consolidated under the Previous Accounting Standard”
and any other forward-looking statements in this document are based upon theinformation currently available to JAIC at the time of writing and certain
assumptions. The achievement is not promised. Numerous factors could cause
actual results to differ materially from these result forecasts.

11. Differences between the “Result Forecast Consolidated under the Previous
Accounting Standard” and the results for first half of fiscal year ending
March 2023 (from April 1, 2022 to September 30, 2022)
Consolidated

Consolidated

Consolidated

Quarterly net

Quarterly net

operatingoperatingordinary

profitincome perrevenue

incomeincomeattributableshare

to owners ofthe parent

Previousforecast（A）
Actual results（B）
Change（B-A）
Percentage
Change(％)（Millions of（Millions of（Millions of（Millions of（*Note）

yen）

yen）

yen）yen）

（Yen）

1,330

50

0(10)

(0.56)

669

(598)

(640)

(655)

(37.01)

(660)

(648)

(640)

(645)

(49.6)

---

381

(496)

(538)

(643)

(Reference） Actual
results under thePrevious Accounting(36.36)

Standards for thehalf of FY Mar. 2022

2. Reasons for differences
Consolidated operating revenue decreased by 49.6% from the previous forecast
mainly because sale of shares fell short of expectations. Some domestic listed
shares were suspended from selling due to sluggish share prices. Some overseas
unlisted shares were delayed in sale due to delays in the procedures.
Provisions increased in addition to lower operating revenues. Provisions wererecorded for investee companies those experienced significant delays inbusiness progress or for which negotiation for the recovery of investment took along time.
Losses increased from project-oriented investment. Production volume of thevegetable plant fell short of plan, and the timing of profitability was delayed
more than expected.
As a result, consolidated operating income decreased by 648 million yen fromthe previous forecast and turn to loss of 598 million yen. This leads to forecasts
for consolidated ordinary income and quarterly net profit attributable to ownersof the parent dropping from the previous forecast.

2

3. Revision on the “ Result Forecast Consolidated under the Previous
Accounting Standard” for full-year of fiscal year ending March 31, 2023
(from April 1, 2022 to March 31, 2023)
Consolidated

Consolidated

Consolidated

Net profit

Consolidated

operatingoperatingordinary

attributablenet income

revenueincomeincometo owners ofper shareparentPrevious forecast（A）
Revised forecast (B)Change（B-A）
Percentage Change (％)（Millions of（Millions of（Millions of（Millions of（*Note）

yen）

yen）yen）yen）

（Yen）

3,000
3,150
＋150
＋5.0

750
320(430)(57.3)

650
280(370)(56.9)

550
160(390)(70.9)

31.07
9.04

2,409

86

6149

2.78

（Reference） Actual
results under thePrevious AccountingStandards for FY Mar.
2022
*Note: Consolidated net income per share in above chart is calculated based on the number of sharesissued and outstanding excluding the number of shares of treasury stock as of September 30, 2022.

4. Reasons for revision
Sale of listed shares will sharply fall short of expectations. Expected sale ofshares from IPO have been postponed to the next fiscal year due to lock-up
regulation. Expected sale of existing listed shares will fall short of the previous
forecast because the share prices have been lower than expected.
On the other hand, sale of unlisted shares is strong and is expected to exceed
the previous forecast. At the beginning of the fiscal year, we expected to sell theshares of an investee company from the next fiscal year onwards through an IPO.
However, we will sell all these shares in the current fiscal year through M&A.
Sale of project-oriented investment is also going smoothly. JAIC has alreadycompleted the sale procedures of projects such as nursing care facility, logistic
warehouse and another facility, and is waiting for the confirmation of profits. As
a result, operating revenue is expected to be 5% more than the previous forecast.
On the other hand, consolidated operating income will decrease from theprevious forecast.
Capital gains from shares will fall short of expectations due to delay of sale oflisted shares with a high margin. Provisions will increase in full year due to anincrease in provisions up to first half, as described in 2 above. As for thevegetable plant, production growth will lag plan and the timing of profitability
will be delayed more than expected.
As a result, consolidated operating income is expected to be 320 million yen,
57.3% less than the previous forecast. This leads to forecasts for consolidated
ordinary income and net profit attributable to owners of the parent droppingfrom the previous forecast.
The “Result Forecast Consolidated under the Previous Accounting Standard” andany other forward-looking statements in this document are based upon theinformation currently available to JAIC at the time of writing and certain3

assumptions. The achievement is not promised. Numerous factors could cause
actual results to differ materially from these result forecasts.

5. “Result Forecast Consolidated Under the Previous Accounting Standard”
5-1. Result forecast
The private equity investment business conducted by the JAIC Group issignificantly affected by changing factors such as stock markets, given thecharacteristics of the business. In addition, it has been difficult to forecast
results reasonably in the rapidly changing environment in recent years. Therefore,
JAIC does not disclose the results forecast. For the convenience of investors andshareholders, however, JAIC discloses “result forecast consolidated under thePrevious Accounting Standard” even though it does not have enough rationality.
5-2. “Result forecast consolidated under the Previous Accounting Standard”
There is a difference between current accounting standards and those applied
to the “Result forecast consolidated under the Previous Accounting Standard.”
As of fiscal year ended March 31, 2007 the JAIC Group has adopted “PracticalSolution on Application of Control Criteria and Influence Criteria to Investment
Associations” (Accounting Standards Board of Japan Practical Issues Task Force
No. 20 issued on September 8, 2006), and consolidated financial statements,etc., are being prepared with the inclusion in the consolidation of some of theoperational investment funds managed by the JAIC Group.
On the other hand, the operational investment funds managed by the JAIC Groupare excluded from the scope of consolidations in the financial statements etc.,
prepared in accordance with the previous accounting standards. Assets,
liabilities, revenues and expenses for investment funds are reported based on
the investment portion by JAIC and its subsidiaries and by excluding the portion
held by external investors. In addition, company-type funds are excluded fromthe scope of consolidations.
To enable investors and shareholders to have an accurate understanding of theJAIC Group’s business results and financial position, JAIC considers it essential
also to disclose financial statements, etc., prepared in accordance with theprevious accounting standards. Therefore, for reference purposes, JAIC willcontinue to disclose financial statements, etc., in accordance with the previous
accounting standards.
(End)4