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.
Company name:
Listed on:
Representative:
Contact:
Tel:

Japan Asia Investment Co., Ltd. (JAIC)Tokyo Stock Exchange Section 1 (Stock code: 8518)
Tetsuro Shimomura, President and CEO
Kenji Kishimoto, Executive Officer+81-3-3221-8518

December 28, 2020

Notice of the Medium-term Management Plan(from FY Mar. 2022 to FY Mar. 2024)
Japan Asia Investment Co., Ltd. (JAIC) hereby announces that, JAIC has formulated athree-year medium-term management plan from the fiscal year ending March 2022 to thefiscal year ending March 2024. .
JAIC will promote investment activities under the new medium-term management plan
based on a core value of conducting “SDGs investment that contributes to the future ofJapan and Asian based on venture capital investment and an unique Asian network.” JAIC
will identify and support the growth of innovative businesses that will be developed in the
post-corona society of Japan, which faces an aging and shrinking population.
Please refer to the attached presentation for the details of the contents.
(End)
Attachment: Medium-term Management Plan(FY Mar. 2022 – FY Mar. 2024)

1Medium-term Management Plan(FY Mar. 2022 – FY Mar. 2024)
Japan Asia Investment Co., Ltd.
December 28, 20201

Table of Contents
 Outline (introduction）・・・ ・・・ ・・・ ・・・ ・・・ ・・・ ・・

P.3

 Reviewing Current Medium‐term Management Plan・・ ・・・ ・・・ ・P.4

 Main Theme of The Plan・・・ ・・・ ・・・・・・・・・・・・・・

P.5

 Overview of Numerical Plan ・・・ ・・・ ・・・・ ・・・ ・・・ ・・

P.6

 Macro Environment and Assumptions for our Business Strategy ・・・・・

P.7

 Business Strategy・・・ ・・・ ・・・ ・・・ ・・・ ・・・ ・・・・

P.8 ‐ P.12

1. PJ Investment・ ・・・ ・・・ ・・・ ・・・ ・・・ ・ ・・

P.13 ‐ P.16

2. PE Investment・・ ・・・ ・・・ ・・・ ・・・ ・・・ ・・

P.17 ‐ P.18

3. Fee Business・・・・ ・・・ ・・・ ・・・ ・・・ ・・・・

P.19 ‐ P.20

 Numerical Plan・・・ ・・・ ・・・ ・・・ ・・・ ・・・ ・ ・・・ ・

P.21

 Efforts for SDGs・・ ・・・ ・・・ ・・・ ・・・ ・・・ ・・・ ・・・

P.22※The figures in this document are based on a consolidated basis (Previous
accounting standard is applied) unless otherwise noted.
2 Outline（Introduction）
This new Medium-term Management Plan was formulated amidst the new coronavirus (COVID-19) outbreak, which began in the end of
2019, and the sudden change of government. Our investment strategies promoted under the current Medium-term Management Plan are
consistent with the outlook of the post-corona society, which includes an overpopulation of cities, regional revitalization, accelerated
deregulation and industry structural reforms. The new Medium-term Management Plan is built on the current Plan and incorporates theabove changes in the environment.
The basic elements that support the new are as below. Japan Asia Investment (JAIC) will promote investment activities under the new
Medium-term Management Plan based on a core value of conducting “SDGs investment that contributes to the future of Japan and Asianbased on venture capital investment and an unique Asian network.” By doing so, we hope to identify and support the growth of innovative
businesses that will be developed in the post-corona society of Japan, which faces an aging and shrinking population.
1) Management policy
We will maintain the philosophy of current management policy to promote and manage investment activities. We will continue andmaintain a policy of proactively carrying out investment activities and related businesses focusing on venture capital investment andour network in Asia, based on our policy of becoming an investment company that “contributes to the creation of more safe, secure,and higher productivity for aging society with fewer children.”2) Basic investment strategy
We aim to generate stable revenue and earn high private equity (PE) investment income by quickly restoring damaged balance sheets
by promoting strategic PE investment and Project oriented (PJ) investment based on our management policy. We will seek to add
depth to promising venture firms and the profitable projects, which should be our core assets. Also, simultaneously, we will try tominimize risks of investment assets by diversifying various PJ investment business.
3) Goals and objectives of specific investment activities

We will aim to achieve substantial investment share through PE investment and enhance added value of investee companies as well as investment
return through hands-on support using our entire resources. By thoroughly enforcing this investment method, we will improve our expertise andcomprehensive strengths as an investment company. At the same moment, we are aiming to develop all of our investment professionals to “think
and act” as same as the companyʼs managers.

4) 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. We will aim tocontribute to the development of SDGs-related businesses and improve profitability by identifying venture firms that contribute toproviding solutions for the realization of a safe, secure and productive society.
5) Continuing investment activities that links Japan and Asia
We will contribute to maintaining the growth of the Japanese economy, which is facing sluggishness due to issues such as theshrinking and aging population, and that of the declining rural areas through investment-related businesses. We will contribute to thegrowth of Asia and incorporating Asiaʼs growth into Japan through investment activities by leveraging our skills in venture capital
investment, our Asian network and our partnerships with regional financial institutions as a platform.
3 Reviewing Current Medium-term Management Plan

Basic
Policy Seek to replace assets by liquidating PE assets
 Create a profit plan without depending on the saleof mega solar PJ assets
 Increase PJ assets supported by bank loans.
 Diversify asset class Carry out strategic investments in partnercompanies
 Make efforts in FA business Invest in vegetable plants, carry out project
financing Enter into healthcare investment
 Enter into distribution center investment
Measures

Review

 Aggressively increase high FIT mega solar PJ assets
 Execute investments in biomass/biogas projects
 Focus on finding new business partners andestablish a foundation for expanding business There was progress in commercialization ofvegetable plants as a key business after megasolar Progress was seen in investment in distribution
centers
 The reduction of PE assets fell significantly short oftarget Profits were achieved through the sale of mega
solar projects. While achieving profitability, thebalance of Project assets fell short of target

Profits recorded for 5 consecutive periods (from 2016 to2020). We estimate to record a profit in 2021 though
the forecast is expected to be lower than the target.
Key goal indicator

FY2021(Forecast)

FY2021(Target)fluctuation

Final profit

0.18 billion yen

0.7 billion yen(0.52) billion
yen

ROE

2.5%

9%

(6.5) %

Strategy

Expandstablerevenue fromPJ
assetsReplacementof PE
assetsMeasures

FY 2021(Forecast)

FY 2021(Target)fluctuationBalance of PJ
assets

5.5 billion
yen

9.0 billion
yen

(3.5)
billionyen

Balance between
the sum of cash
and deposits and
PJ assets andborrowings+2.4 billionyen+5.6 billion
yen

(3.2)
billionyen

Promotion ofearly liquidizing
and monetizationof assets except
strategic
investments etc.

Balance ofinvestment
2.7 billion
yen(net ofprovisions)

Balance ofinvestment
1.0 billion
yen(net ofprovisions)＋1.7
billionyen

Establishme
nt of funds
for new
investments
Implementation ofstrategic
investments

Balance ofinvestment
1.2 billion
yen

Balance ofinvestment
1.0 billion
yen

＋0.2
billion
yen

•

•

4

 Main Theme of The Plan
Investment policy
ResultBring irreversible changes

Past

Today, future Minority/diversified investment based on “Lawof Large Numbers”
 Hands-off (advocates “hands-on” but only
provides sporadic support due to dissipation of
resources) Dependence on IPO for exit (large impairment
risk if IPO does not happen) Strategic/carefully selected investment stylethat combines PJ investment
 Hands-on (a full support system leveraging
networks and resources) Diverse exit policies that do not depend on
IPO (exit through M&As is also possible) Unrealized IPO ➡ Accumulation of “living
dead” assets
 Periodic income➡ Uncontrollable

 Diversified exit strategies ➡ Avoids “living
dead” assets
 Periodic income➡ Controllable

Eliminate assets accumulated under the old investment policy
A departure from the past

Establish unique investment style to differentiate from others
The start of JAICʼs “Second Foundation Period”

New Medium-term Management Plan

ActionTargetComplete the replacement of assets underthe “new investment policy”

Strengthen partner strategies in Japan andAsia; establish a support system throughout
Asia
Make efforts in SDGs and ESG throughinvestment







Pave the way for a sustainable revenue
structure (promote bankable investment
business with venture firms)
Promote business in cooperation with
regional financial institutions by providing
networks and equity skills
Aim to increase corporate value throughSDGs investment
5 Overview of Numerical Plan
The current Medium-term Management Plan focuses on finding partners for new businesses, mainly venture firms,
and aims to establish a foundation for expanding the businesses. Although the PE investment business fell short of
the target, the PJ investment business contributed to profits as we shifted funds and resources there. As a result,
we recorded profits for five consecutive fiscal year starting from March 2016 to March 2020. We estimate to record
a profit for the fiscal year ending March 2021.
In the new Medium-term Management Plan, we will “eliminate assets under the old investment policy,” andcomplete the replacement of assets to those under the new investment policy. At the same time, we will pave theway for “establishing a sustainable revenue structure,” in which recurring expenses are covered by revenues ofrelatively high certainty by accumulating assets that are expected to generate stable profits and expanding new PJ
investment assets with higher liquidity for possible trade sale.
The corona crisis has brought about major changes in business, workstyles, and lifestyles. We reconsider ourbusiness strategy in view of these social changes and aim to add depth to each business.







2022 – 20242019 – 2021
Medium-term management plan dated May 18, 2018

New medium-term management plan dated Dec. 28, 2020

Plan based upon profit from PE business¥M¥M

Actual/Estimate

2,000
1,500
1,000
500
0
-500

PE

PJ

FY Mar. 2019

PE

PJ

FY Mar. 2020

Plan

2,500

Profit Plan*

Profit Plan & Results*

Plan

2,500

Transition period to develop revenue
structure based upon profit from PJ businessPE

PJ

FY Mar. 2021

2,000
1,500
1,000
500
0
-500

PE

PJ

FY Mar. 2022

PE

PJ

FY Mar. 2023

PE

PJ

FY Mar. 2024

※Proﬁt plans are gross proﬁts. Results include other proﬁts.

6 Macro Environment and Assumptions for our Business Strategy
Current Medium-term Management Plan

Key elements are the aging and declining population, global warming, and Japanʼs energy issues arising from
nuclear power plants

Individuals(Previously)• Long commute, long work hours, a male-dominated andmembership-type corporate society

Society(Previously)• Aging and declining population• Inequality, poverty• Global warming, Japanʼs energy issues arising from nuclear
power plants(Post-corona society)• Changes in lifestyles, such as in schools, work and(Post-corona society)communication• Decentralization to rural areas from urban areas• Changes in values and consumer behavior regarding goods and• Review of lifelong employment and seniority system; fromservices
membership-type to job-oriented employment• Changes in awareness of work-life balance,•
・Review of school systems following the trend ofdiversification of workstyles, changes in required skills
Coronaremote learning
crisis•・Accelerated changes in industry structures

Companies••(Previously)
Enhancement of corporate governance and compliance
Improvement in corporate value, initiatives to expand businessperformance and achieve sustainable growth(Post-corona society)• Review of “shareholder first” thinking• Initiatives in operating business that respects the interest of
employees and local communities• Expansion of working at home, acceleration of workstyle reforms,
review of work customs• Pursuit of productivity using AI and IT

Acceleratedchanges

Technology(Previously)
Utilization of AI, IT, Cloud Technologies, etc., progress of 5G andother next-generation communication systems• Changes in distribution and logistics due to international dispersion of
production bases• Utilization of contactless systems and robots•(Post-corona society)• Rapid spread of new technologies following restrictions on movementof people and goods(ex. work from home, remote learning, EC, auto pilot)• Changes in lifestyles and industry structures

New Medium-term Management Plan

Addresses conventional issues as well as issues arising from the change brought by COVID-19
7

 Business Strategy
Renewable energy

ThemeMarketenvironment

Core competence

Smart agriculture(vegetable plant)

Distribution warehouse＃Clean energy＃Safe & secure society＃Global warming and aging offarming population＃Changes in society by COVID-19＃Expansion of EC＃Lifestyle changes

Power generation from renewableenergy accelerating toward adecarbonized society. Globally,
efforts for net zero CO2 emissions
within the region are progressing.

The market for plant vegetables is
expanding. Unstable supply andprices of vegetables grown outdoors
due to unseasonable weather andnatural disasters.

The warehouse vacancy rate of theTokyo area is at a historical low andrent levels are at their highest since2009 due to consolidation of
distribution centers and the
expansion of the EC market.

“Ability to approach wide range oftransactions gained from anextensive network based on apartner strategy”“The strength of our partner,
Morihisa”
Technological strength enables to
produce high-quality vegetables thatare highly rated by major
companies.
Morihisa succeeded in mass
production of high-quality, pesticidefree plant vegetables with anextremely low viable bacteria count.
The company has a track record of
winning competitions, which led tobusiness with major convenience
store, etc., who switched from othercompaniesʼ vegetable plants.

“The strength of partner, KIC”
Development skills to buy land
avoided by major developers. Theydevelop warehouse with low costand lease out cheap.

In addition to the Nagoya and Kyoto
districts of major convenience store,
with which business started in June
2020, business with the Chugoku
and Shikoku districts began in
October 2020. We aim to expand
business to the Hokuriku region andeventually nationwide by increasing
the plants.
We will look for customer companies
that handle home-meal
replacements, such as delis at foodsupermarkets.

They will shorten the development
period by strengthening cooperation
with local governments and utilizing
the Logistics Comprehensive
Efficiency Act enforced in 2016.
We support to obtain good tenantcompanies to increase their revenue
opportunities.
We will look for later-stage investors
seeking for stable return to improve
the investment result of JAIC, as weare investing from the earlier stage.

We ensure a certain level ofprofitability amid changes to the FIT
program, while diversifying
investment targets to mega solar
PJs, solar sharing, wind power,
biomass, and biogas.

For solar power business, we will

Business strategy invest in Vietnamʼs rooftop solar

business as an initiative toward
breaking away from FIT program. In
Japan, we will search for a local
production for local consumption
model to conduct business that does
not rely on the FIT program.
In terms of other power sources, forbiogas, we will cultivate suppliers offood residue mainly from foodfactories to support the project. We
plan to invest new facility after
confirming track record.

KIC has the skills of avoiding
competition with major developers
by purchasing land that is difficult todevelop, such as land with badrelationship with frontal road or landin urbanization control areas, at alow price and putting in efforts tocommercialize them.

8 Business Strategy(Healthcare)Group homes for the handicapped

Theme
Marketenvironment(Health care)

Facilities for the elderly

M&A Advisory Services＃Society that respects minorities＃Safe & secure society＃Safe & secure society＃Aging & declining population＃Aging & declining population＃Successor problem

Users of group homes haveincreased since the enforcement of
the Act on the Comprehensive
Support for the Daily and Social Lifeof Persons with Disabilities in 2013.

In Japan the elderly population
increases while total population
decreases. People aged 65 or older
is expected to account for 30% by
2025.

M&As are increasing, especiallyamong SMEs, due to successor
problems and increase incompaniesʼ overseas expansion.

“The strength of partner, AIP
Healthcare Japan”
They are involved in the operationof Japanʼs first listed REIT
specializing in healthcare and has abroad network in the elderly careindustry“The opportunity to explore
demands through investment
activities and fund operation athome and abroad”

strength of partner, SocialCore competence “TheInclu”Is in a leading position in the market
that major players have not yet
entered.
Competition is still moderate despite
an expanding market. Social Inclu
leads the industry with one of thelargest numbers of group homes
operated in Japan.

We succeeded to arrange financing

Business strategy for the JAIC-developed project fromregional financial institutions andestablished it as a bankable
investment project.
↓
We will originate a private
placement fund in cooperation withfinancial institutions and invest in 50
projects over three years.

The company is recognized as apioneer of the industry for its
involvement in the establishment of
Nippon Healthcare Investment
Corporation and as an operation
advisor.
They target the relatively wealthyclass in urban areas that lacksufficient facilities for the elderly.
They improved profitability by
constructing as a complex facility.
↓
We carefully select projects andinvest in projects with highprofitability.

We have a track record of morethan 300 IPOs as potential clientcompanies and are recognized forour long-standing investment
activities in Asia.

We will explore revenue
opportunities in M&A and other FA
operations by supporting companiesʼ
overseas expansion and businessexpansion leveraging our network inJapan and abroad.
↓
We aim to earn fee income of ¥150
million annually in FY Mar. 2024.

9 Business Strategy
Business
policyStabilizing our basic revenue source by promoting Project Investment and fee business,while strengthening our additional earning power by increasing capital gain from PE
investment aiming to enhance our corporate value and shareholderʼs value

Project
investment

RenewableenergySmartagriculture(vegetable
plant)

Distribution
center(logistics
warehouse)

Healthcare（grouphomes forhandicapped/facilities for
elderly）

Income gain/
Capital gain

Collaboration/Support

PE
investment

Strategic investment in partner companies
Financial investment

Capital gain

SupportFee businessNewbusiness

Ｍ＆Ａ
Advisory

Overseasbusiness
expansion
supportOverallbusiness
expansion
supportAdministrati
on servicefor
entrusted
funds

Develop new businesses that will become ourcore revenue generator related to our existing
investment themes and other business themesthat may arise from corona crisis

Fee income

Increase in future
revenue10 Business Strategy
Business
policyClassify business opportunities into ”Long-term Stable Earnings” and “Short-term
Variable Earnings”. Aim to realize the optimum combination of the two, to establish
sustainable earning & cash flow structure
LONG-TERM

Project investment

Expecting to gain stable and constant earnings
from long-term holding of assets
Smartagriculture(vegetable
plant)

Healthcare(group homes
for thehandicapped)

SHORT-TERM

Expecting to realize a certain profit as a capitalgain every year by replacing asset from time totime
Healthcare(facilities
for theelderly)

RenewableenergyDistribution
warehouse

New business

PE investment/Feebusiness

Administrat
ion services
forentrusted
funds

Expecting to make astable earnings

Overseas
expansion
supportBusiness
expansion
support
M&A
Advisory

Expecting to make a stable earnings
by closing several deals every year

Financialinvestment

Strategic
investment
in partnercompanies

Expecting to make avariable but significant
earnings as a capital gain

11 Business Strategy
Businessstrategy

Discover venture firms with a competitive edge to expand ourbusiness portfolio and develop them into a major business in the
future“Leverage the accumulated experience as a VC to discoverpromising venture companies”

JAICʼs strength“Partnerstrategy”

Project
Investment

Administration
servicesfor funds

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

FA businesssuch as M&A
advisorybusiness

Distribution
center(logistics
warehouse)

Increase investments as a priority area.
Invest in early stages of PJs and achieve high returns byattracting later stage investors looking for middle-risk &middle returns.

Healthcare(facilities forthe elderly)

RenewableenergyHealthcare

New Business＝＋ ≧Profits from fee
business¥0.２5 billion

Continue to invest in carefully selected projects

Increase investments in rooftop solar power generation PJ in
Vietnam and biogas PJ in Japan.
Sell mega solar projects in Japan after the completion to post
gain on sales.

Smartagriculture(vegetable
plant)(group homes forthe handicapped)

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

Profits from PE
investment¥１.1 billion

SGA expenses

Fee BusinessPE
Financialinvestment

FY Mar 2024
Forecast

ExcessprofitPE
PE
Strategic
Investment investment

A sustainable revenue
structure

Profits from PJ
investment¥0.８billion

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

Invest in 50 projects by originating funds from majorbanks and leasing companies

New
investment
area

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

12

1. Project Investment
Renewableenergy・Increase investments in rooftop solar PJ in Vietnam and biogas PJ in Japan.
・Explore exit opportunity for the mega solar PJ in Japan after the completion.
・Make effort to diversify investment to different renewable power sources and find new revenue
opportunities.

Biomass Power Technologies Inc.

Bamboo Capital Joint Stock Company

Smartagriculture（vegetable
plant）

Smart Solar Corporation

Overseas（Vietnam）
Rooftop solar
panelsSupporting development of new
business of the partner company
Distribution
warehouse

Domestic
Rooftopsolar
projects
Healthcare(group homes
for thedisabled/facilit
ies for theelderly)

Battery
Storagebusinessforhouseholduse

Biomass

Mega solar

Solar sharing

Diversify tootherrenewablepowersources

BiogasWind
power

Nishitokyo Recycle Center

Renewable Japan Co., Ltd.
13

1. Project Investment
・Increase customer base related to major convenience store Group.
・Expand operation up to Plant No.4 while expanding sales volume.
・Support to launch strawberry plant business for partner company.

RenewableenergySmartagriculture（vegetable
plant）

Market size of strawberries grown in Japan• Among major vegetables and fruits grown inJapan, strawberries have the highest wholesale
unit price and the largest total wholesale value.
• The supply of strawberries grown outdoor islimited to a half year period between lateNovember to early May.
• There is significant potential demand if
strawberries can be supplied during the off season.

Smartagriculture（vegetable
plant）

MD-Farm

Distribution
warehouse

Healthcare(group homes
for thedisabled/facilit
ies for theelderly)

Potential
customers
are luxury
grocery
stores etc.

Morihisa Engineering Co., Ltd.

Smart
agriculture（strawberry
plant）

Support businesslaunch by investee
companies

Customer companies are- restaurant chains,- coffee shop chains,- family restaurants,- convenience stores and- food supermarkets.

141. Project Investment
Renewableenergy・Focus to construct warehouse on the land with difficulties to develop, where major companies
hesitate to compete.
・Invest in early stages of the PJ to achieve higher returns by attracting later-stage investors seeking
for middle-risk & middle-returns.

Investment Record
KIC Holdings Inc.
Smart
agriculture（vegetable
plant）

Investment Record※Rendering

Koshigaya PJ(Invested in Dec. 2019)
To be completed in Oct. 2021

Distribution
center(logistics
warehouse)※Rendering

EbinaⅠ PJ

Distribution
warehouse(Partially invested in Oct. 2020)
To be completed in Mar. 2023
※Rendering

AtsugiⅡ PJ(Invested in Dec. 2019)
To be completed in June 2022

Healthcare(group homes
for thedisabled/facilit
ies for theelderly)※Rendering

EbinaⅡ PJ(Partially invested in Oct. 2020)
The completion schedule is undecided.

15

1. Project Investment
Renewableenergy・Group homes for the handicapped: Originate special purpose funds with partners toinvest in up to 50 projects.
・Facilities for the elderly: Invest in selected projects to secure profitability.

Investment Record
Smartagriculture

Facilities forthe elderly（vegetable
plant）AIP Healthcare Japan GK※Rendering
AIP Kachidoki Ekimae Building(Dec. 2017: EXIT)

Shinonome 1-chome multipurpose building PJ（Investment made in Feb. 2020 )Investment Record

Distribution
warehouseGroup
homes forthehandicapped
Healthcare(group homes
for thedisabled/facilit
ies for theelderly)

Social Inclu CO., LTD.

※Photos are Hamamatsu PJ.

(Hamamatsu: Operation started in Aug. 2020)(Hiroshima: Operation started in Aug. 2020)(Utsunomiya: Investment made in Nov. 2020)16

2. PE Investment
・Support growth of strategic partner companies, expecting to increase gain from exit process.
・Cultivate new PJ investment areas and carry out strategic investment.

Strategic
investment
in partnercompanies

Financialinvestment

Renewable Japan Co., Ltd.

Smart Solar Corporationsocial inclu CO., LTD.

Partner company in mega solar
projects

Partner company in mega solar
projects

Partner company in projects forgroup homes for the handicapped

Year of first investment: 2015

Year of first investment: 2017

Year of first investment: 2019

Morihisa Engineering Co., Ltd.

MD-Farm

KIC Holdings Inc.

Partner company in smart
agriculture projects (vegetables)

Partner company in smart agriculture
projects (strawberries)

Partner company in distribution
warehouse projects

Year of first investment: 2019Year of first investment: 2019Year of first investment: 202017

2. PE Investment
Complete asset replacement through earlyliquidation of existing assets.
Originate new funds.

Suzhou SIP

SuzhouFundStrategic
investment
in partnercompanies

Partner with regional financial
institutions using our network
in Asia

An investment fund from agovernment established by the
VC division of Suzhou
Industrial Park and the China
Development Bank

Shenyang Wanrun City Investment
Management Co., Ltd. /Shenyang
Hunnan Science & Technology Zone
Development Company Limited

Japan Asia Investment (China) Co., Ltd.

TianjinFund

Invests in growthcompanies in priority
industrial fields inBinhai New Area, suchas environment-related
technologies, in the
Tianjin area

Tianjin Eco City

Financialinvestment

Originate funds with reputable companies andstrengthen related fee business

Shenyang
Fund

Shenyang
Fund
No.2

Invests in Chinaʼs
growth companies
mainly in ShenyangNeworigination

Globalization
Support Fund

Hokkaido
SME Global
Fund

Cross-border

New origination of
succeeding fund

ChengduFund
NingboFund

New origination ofnationwide fundLP investment fundFunds operated by partners
with excellent expertise

Provides funds for overseas
expansion of SMEs in Hokkaido
and for businesses addressing
demand from foreign tourists
visiting Japan

Pursues wide range
of investment
Succession
No.1
opportunities, suchas purchasing VC
investments fromcompetitorsʼ funds Invests in JapaneseSMEs facing
business succession
New origination ofissuessucceeding fund

JVCI
Secondary
Fund
Secondary
Fund
No.2

18

3. Fee Business
Ｍ&Ａ
brokerage

While conducting our business such as M&A advisory,
overseas/business expansion support, and investment inbusiness succession, we look for the companies which may
provide synergy effects to our existing investment.
If such business is attractive, we consider to acquire suchcompanies to increase our consolidated profit.

・Provide Financial Advisory Services for M&A opportunities
which we may capture through our investment search
activities.
・Find investment and profit opportunities by supporting
overseas/business expansion needs of our client, taking
advantage of our network both at home and abroad.

Aim to earn fees income of 150
million Yen annually
Overseas
expansion
supportFirst Eastern Investment Group

Shenyang Hunnan Science & Technology
Zone Development Company Limited

Yantai City Investment
Promotion Center

Overseas
expansion
supportWuhan City Commercial BureauXiʻan High New Technology
Development Zone

（Vietnam）

Administration ofentrusted
funds

M&A
Advisory

Suzhou Venture Group
Tianjin Eco City

Vietnam Maritime
Commercial Joint Stock
Bank
World Link Japan, Inc.

Utilizing the Fund
as a tool to capture
opportunities forfee business（Japan）

Chengdu High New Technology Industrial（China）
Development Zone
Qingdao City government
Shenyang Wanrun City Investment
Management Co., Ltd.

Business
expansion
supportPartners

SME Global
Fund

F
e
e
i
n
c
o
m
e

Business
expansion
support

I
n
v
e
s
t
m
e
n
t
i
n
c
o
m
e

（Thailand）

KT Zmico Securities Company Limited

Project
Investment
BusinessPE
Investment
Business

VNET Venture CapitalManagement Securities Co., Ltd.

(Singapore/Malaysia)

BA Partners Pte. Ltd.
Lingua Franca Holdings Pte. Ltd.
19

3. Fee Business
M&A
brokerage••

Start adopting the new accounting system early to enhance operation.
Accept entrustment of 2 to 3 additional external funds per fiscal year to earn annual
revenue of ¥100 million.

Administration services for entrusted funds¥M
Overseas
expansion
support100

for customers other than JAIC Group

80

No.
40

30

60
20
Business
expansion
support

40
10

20

0
FY Mar. 2014 FY Mar. 2015 FY Mar. 2016 FY Mar. 2017 FY Mar. 2018 FY Mar. 2019 FY Mar. 2020
Administration ofentrusted
funds

Revenues

Number of funds

20

Numerical Plan

21 Efforts for SDGs
JAIC is fully aware of the importance of the SDGs and committed to fulfill our social responsibilities and to contribute to the society.
JAIC endeavor to contribute to SDGs through investment activities, which is the most important task in our Management Policy.
【Management Policy】 As an investment company that links Japan with the rest of Asian region, we are committed to contribute to
the creation of more safe, stable and efficient future society under the circumstance of structural problem derived from declining
birthrate and increasing aging population

Environment
SocialRenewableenergySmartagriculture(vegetable
plant)

We will provide solutions for the decline and aging of farming population,
climate change and food safety through investments in vegetable plants.

Distribution
center(logistics
warehouse)

Facilities forthe elderlyManagement
system

We will contribute to achieve a productive society, revitalizing
regional industries and creating employment through investments inthe distribution center projects (logistics warehouse).

Group
homes forthehandicappedＰＥ
investment

GovernanceWe contribute to reducing the burden on the environment byinvesting in renewable energy projects and partner companies of the
projects.

We will provide solutions for realizing an inclusive, safe andcomfortable society through investments in healthcare
projects (facilities for the elderly, group homes for thehandicapped).

We will improve productivity and complement labor throughinnovations by supporting investee companies which revitalize
existing businesses. We will also support to sustain basic industry byproviding funds for SMEs with succession problem.

4 out of 7 directors are independent outside directors. / An independent outside director
serves as chairperson of Board of Directors. / A voluntary ”Evaluation Committee” evaluates
personnel matters and compensation of executive directors./ Self-assessment of theeffectiveness of the Board of Directors is conducted and its results are properly disclosed. /Audit & Supervisory Committee audits and internal audits are properly conducted.
22