This document has been translated from Japanese original for reference
purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail. JAIC
assumes no responsibility for this translation or for direct, indirect or any
other forms of damages arising from the translation.
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Japan Asia Investment Co., Ltd. (JAIC)Tokyo Stock Exchange Section 1 (Stock code: 8518)
Tetsuro Shimomura, President and CEOKenji Kishimoto, Executive Officer+81-3-3221-8518

April 5, 2021

Notice of Revision on “Result Forecast Consolidated under the Previous
Accounting Standard”
Japan Asia Investment Co., Ltd. (JAIC) hereby announces that, based on the recent
business performance etc., JAIC has revised its “result forecast consolidated under thePrevious Accounting Standard” for the fiscal year ended March 31, 2021 (from April 1,2020 to March 31, 2021), previously announced on May 15, 2020.
Though JAIC doesn t disclose consolidated result forecast, JAIC expects that there will be asignificant difference between revised “result forecast consolidated under the Previous
Accounting Standard” and consolidated result forecast due to differences in accounting
standards applied to.
The “result forecast consolidated under the Previous Accounting Standard” is based upon
the information currently available to JAIC and certain assumptions. Various factors could
cause actual results to differ from this result forecasts.

11. Revision on the “result forecast consolidated under the Previous AccountingStandard” for the fiscal year ended March 31, 2021 (from April 1, 2020 to March
31, 2021)

Previous forecast（A）
Revised forecast（B）
Change（B-A）
Percentage Change(％)

Consolidated

ConsolidatedConsolidated

ProfitConsolidated

operatingoperatingordinary

attributablenet income

revenueincomeincometo owners ofper shareparent（*Note）（Yen）（Millions of（Millions of（Millions of（Millions ofyen）yen）yen）

yen）

3,250
3,050
(200)
(6.2)

350
190
(160)
(45.7)

200
150
(50)
(25.0)

180
120
(60)
(33.3)

10.17
6.78

302

17.09

（Reference）
Consolidated financial
results under thePrevious AccountingStandards for the fiscal

2,760

265

140

year ended March 31,
2020*Note 1: 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 at March 31, 2021.
*Note 2: Please refer to 3-3 as for the significant difference between “result forecast consolidated under
the Previous Accounting Standard” and actual results consolidated.

2. Reasons for revision
At the beginning of the current fiscal year JAIC expected capital gains from IPOs in Japanand trade sales in overseas.
During the first half of the current fiscal year, however, several investee companies have
postponed their IPOs due to weak stock markets and poor business performance. On theother hand, many buyers have expressed their interests in purchasing mega solar projects
those started selling electricity. So that JAIC recognized this as an opportunity and changed
its plan at the beginning of the current fiscal year. JAIC decided to sell 7 mega solar projects
amounting to 18.3 MW (including partial sales). JAIC focused on selling these projects andrealizing the planned sales of shares in the second half of the current fiscal year to achieve
the result forecast.
For mega solar projects, JAIC achieved capital gains as planned. For sales of shares, however,
JAIC couldn t achieve capital gains. Sales of listed shares resulted in lower than expected
because the share price of a listed company fell and the trading volume of a listed company
was sluggish. Sales of unlisted shares also didn t reach the target because the procedure forselling some unlisted shares was delayed, and negotiations to sell some unlisted shares did
not reach an agreement.
As a result, gains from sales of shares in the fourth quarter was lower than expected andoperating revenue is expected to be 6.2% less than the previous forecast. This leads toforecasts for both operating income, ordinary income and profit attributable to owners ofparent dropping from the previous forecast.
2

Please be noticed that the “result forecast consolidated under the Previous AccountingStandard” is based upon the information currently available to JAIC and certain assumptions.
Various factors could cause actual results to differ from this result forecasts.
3. Consolidated result forecast and significant difference from “Result Forecast
Consolidated Under the Previous Accounting Standard”
3-1. Result forecast
The private equity investment business conducted by the JAIC Group is significantly affectedby changing factors such as stock markets, given the characteristics of the business. Inaddition, it has been difficult to forecast results reasonably in the rapidly changing
environment in recent years. Therefore JAIC doesn t disclose the results forecast. For theconvenience of investors and shareholders, however, JAIC discloses “ result forecast
consolidated under the Previous Accounting Standard” even though it doesn t have enoughrationality.
3-2. “Result forecast consolidated under the Previous Accounting Standard”
There is a difference between current accounting standards and those applied to the “Resultforecast consolidated under the Previous Accounting Standard”. As of Fiscal year ended
March 31, 2007 the JAIC Group has adopted “Practical Solution on Application of Control
Criteria and Influence Criteria to Investment Associations” (Accounting Standards Board ofJapan 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 someof the operational investment funds managed by the JAIC Group.
On the other hand, the operational investment funds managed by the JAIC Group areexcluded from the scope of consolidations in the financial statements etc., prepared inaccordance with the previous accounting standards. Assets, liabilities, revenues andexpenses for investment funds are reported based on the investment portion by JAIC andits subsidiaries and by excluding the portion held by external investors. In addition,company-type funds are excluded from the scope of consolidations.
To enable investors and shareholders to have an accurate understanding of the JAIC Group sbusiness results and financial position, JAIC considers it essential also to disclose financial
statements, etc., prepared in accordance with the previous accounting standards. Therefore,for reference purposes, JAIC will continue to disclose financial statements, etc., inaccordance with the previous accounting standards.
3-3. significant difference between revised “result forecast consolidated under the Previous
Accounting Standard”“ Result forecast consolidated under the Previous Accounting Standard” differs fromconsolidated results forecast under current accounting standard because different
accounting standards applied. In the fiscal year March 2021, JAIC sold part of a mega solar
project which categorized as a consolidated subsidiary. In the previous accounting standards,
107 million yen of gain on sale of the project is recorded as profits. On the other hand, gainon sale of the project is not recorded as profits but is recorded as capital surplus. In thisconnection, consolidated result forecast is estimated lower than the “ Result forecast
consolidated under the Previous Accounting Standard” mainly because of the gain on saleof the project.
3(End)4