Financial Results Overview
for the 1st Quarter Ended
June 30, 2018
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: August 13, 2018
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-1-

Contents

1 SummaryP3

2 Results for 1Q FY Mar 2019 (Previous accounting standard)

P4

3 Result forecast for FY Mar 2019 (Previous accounting standard)

P21

4 Appendix

P22

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1. Summary

Results for 1Q FY March 2019 (Previous accounting standard)• Revenues decreased by 73.6% year on year; final deficit ended at 0.5
billion yen.
• Sale of listed shares decreased; there was no sale of projects• Write-offs and provision for allowance increased due to the drop in the
expected recovery amount of overseas investments
Business report• Fund amount increase performance: Business succession-type buyout
fund of ¥0.6 bn.
• ¥1.3 bn. of investment execution to renewable energy projects• Electricity sales commencement projects: 2 profects; 5.0MW
Result forecast FY Mar 2019 (Previous accounting standard)• No change from start of term; gain on sale concentrating in Q4• Compensate for the excessive write-offs and allowance with gain on saleof shares through IPOs
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2. Results for 1Q FY March 2019 (Previous accounting standard)

Business Result
Outline of results

P5

Break down of operating revenue & operating cost

P8

Break down of investment income of private equity

P9

Business Report
Private equity investment

P11

Renewable energy investment

P14

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2. Results for 1Q FY March 2019 – Outline of results (Previous accounting standard)
FY 2019 1Q(Actual)FY 2018 1Q(Actual)AmountComposition
AmountComposition(million yen)ratio
(million yen)ratio
Operating revenue

Result forcast
FY2019AmountProgression(million yen)ratio

Change717

100.0%

189

100.0%(73.6%)

3,450

5.5%

Operating gross profit

101
615

14.1%
85.9%

487
(297)

257.4%(157.4%)380.6%
-

1,650
1,800

29.5%
-

SG&A expenses

307

42.8%

239

126.7%(21.9%)

1,100

21.8%

Operating income

308

43.0%

(537)

(284.1%)

-

700

-

Profit attributable to owners of parent

284
281

39.6%
39.2%

(537)
(539)

(283.9%)(285.0%)

-

550
470

-

Stable revenues (*)

33

-

88

-

-

330

26.9%

10.8%

-

37.1%

-

-

30.0%

-

Operating cost

Ordinary Income

Percentage of stable revenues to SG&A

Year on year: 73.6% drop in revenues; final deficit of ¥0.5 billion; decrease in proceeds ofsales in operating revenue; increase in write-offs in operating cost
Versus full-year forecast: Operating revenue 5.5%; final profit -¥1 billion; gain on salethrough IPO expected mainly in Q4
Stable revenues: Year-on-year increase due to increase in projects that started electricity
sales(*) Stable revenues: Management fees ＋ project oriented revenues except project oriented investment capital gain and subsidy income ＋ PE investment
income gain.
http://www.jaic-vc.co.jp-5-2. Results for 1Q FY March 2019 – Outline of results (Previous accounting standard)
FY 2019 1Q(Actual)FY Mar 2017
(Actual)AmountComposition
AmountComposition(million yen)ratio
(million yen)ratio
Total assets

Change19,220100.0%

17,218100.0%(10.4%)

7,308

38.0%

4,695

27.3%

(35.7%)

3,582

18.6%

4,660

27.1%

30.1%

6,030

31.4%

5,501

32.0%

(8.8%)（ c ） Loans payable

11,95462.2%

10,48660.9%(12.3%)

Total shareholders' equity

6,545

34.1%

5,990

34.8%

(8.5%)(a) + (b) - （ c ）(1,063)-(1,130)--(a) Cash and deposits(b) Operational investment securities(Renewable energy projects) etc.
Operational investment securities after
deducting Allowance for possible

Project oriented investment assets increased due to progress of investment execution
Outstanding loans payable were ¥10.4 bn. 77.2％ was reduced from the peak (incl. bonds).
Cash and deposits decreased due to repayment of borrowings. The balance between the total amountof cash and deposits and renewable energy projects and outstanding borrowings are -¥1.1 bn, roughly
the same as at the end of FY March 2018.
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2. Results for 1Q FY March 2019 –Cash Flows – (Fund consolidated accounting standard)(JPY million)

Operating CF
Investing CF
Financing CF
Change in Net CF
Cash & Cash Equivalents
at End of Period

13/3
1,196
277
(2,838)(1,259)

14/3
3,624
437
(1,424)
2,758

15/3
511
213
(3,224)(2,371)

16/3
974
470
(1,404)
(26)

17/3
1,406
(5)
(2,469)(1,100)

18/3
1,870
238
(2,173)
(57)

5,554

8,313

5,942

5,915

4,815

4,757

18/3(1Q) 19/3(1Q)
(377)
(172)
(4)
(25)
(1,453)(1,468)(1,844)(1,679)
2,970

3,078

Operating CF: Net cash used was ¥0.17 bn. due to booking of losses andinvestments in funds
Financing CF: Net cash used was ¥14.6 bn. due to repayment of borrowings

http://www.jaic-vc.co.jp-7-

2. Results for 1Q FY March 2019 –Break down of operating revenue & operating cost (Previous accounting standard)
Total
FY 2018(1Q)
FY 2019(1Q)(Actual)(Actual)（JPY million）

Private equity investment
FY 2018(1Q)
FY 2019(1Q)(Actual)(Actual)
274

62

189
65
70
40
3
8
487
64

33

Fund interests losses etc.

4

Other operating costs

1

Operating revenue

717

Fund management fees and others

63

Success Fees

50

Proceeds of sales of securities

156

Fund interests income etc.

418

Income gains

19

Other operating reveue

8

Operating Cost

101
Cost of securities soldInvestment write-offs and Provision for allowancefor possible investment losses

Operating Gross Profit

615

Project oriented investment
FY 2018(1Q)
FY 2019(1Q)(Actual)(Actual)
442

62

154
64
70
13
3
1
487
64

-

34
0
26
0
6
-

415

33

415

-

-

5
1
(297)

3

5
1
(333)

0

34

62
50
156
0
1
2
100

1
173

0
417
17
5
0

441

In private equity investment, success fees were not generated and proceeds of saledecreased while writewrite-offs and provision for allowance increased, leading to an operating
gross loss.
In project oriented investment, gain on sale of projects or subsidy income was not
generated and fund interests income decreased, resulting in failure to compensate forprivate equity investment.
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2. Results for 1Q FY March 2019 – Break down of investment income of private equity(JPY million)

2018/3 (1Q)

Domestic

Total

Domestic

Overseas

listed stock unlisted stock unlisted stock(A) Proceeds of sales of securities

156

110

12

33

(B) Cost of securities sold

62

43

2

16

(A)-(B) Realized capital gains( C) Investment write-offs and Provision for allowance for possible investment losses(A)-(B)-( C) Invstment income

94
33
61

67
67

9
25
(15)

17
7
9

2019/3 (1Q)

Domestic
Domestic
Overseas
listed stock unlisted stock unlisted stock

Total(A) Proceeds of sales of securities

70

1

58

11

(B) Cost of securities sold(A)-(B) Realized capital gains( C) Investment write-offs and Provision for allowance for possible investment losses

64
5
415

0
1
-

49
8
12

14
(3)
403

(A)-(B)-( C) Invstment income

(409)

1

(3)

(406)

Decrease in sale of domestic listed shares >>> Decrease in proceeds of sales
and realized capital gains
Drop in expected amount of sales of overseas unlisted shares >>> Increase inwritewrite-offs and provision for allowance
http://www.jaic-vc.co.jp-9-

2. Results for 1Q FY March 2019 – Business report

Private equity investment

P11

Renewable energy project investment

P14

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2. Results for 1Q FY March 2019 – Business report – Private equity investment

Investment execution : 2 companies, ¥0.1 bn.
JAIC Venture Capital Investment L. P.
（Secondary investment fund for venture companies）

Shenyang WanrunWanrun-JAIC Venture Capital Enterprise（Targeting promising companies in Shenyang City）

瀋陽中元宜和生物科技有限公司

LIGUA, Inc.
Top-class share in solution services fororthopedic and osteopathic clinics••

Provides enhancement of patient information management
through system introduction, introduction of own expense
menu using treatment devices such as EMS, personnel
training support, and accounting support
Capital (incl. capital reserve): ¥280 million; employees: 81

Start-up firm that develops and manufactures
artificial insemination medical device for medical
institutions••

Obtained approval from China Food and Drug Administration(CFDA) on domestic manufacture and sale of egg cell collectors,
embryo transplant conduits, and artificial fertilization tubes
Established April 2011; capital: 6.7 million yuan

Embryotransplant
conduitEgg cellcollector
Patient information
management system”LigooPOS&CRM”
http://www.jaic-vc.co.jp

Electric treatment device“EMS-indepth-”

Artificial
fertilization tube

- 11 -

2. Results for 1Q FY March 2019 – Business report – Private equity investment

Investment balance : 124companies, ¥9.1 bn.
【Breakdown by area】【Breakdown by industry】

OthersOthers;; 12co.
China,

0.3bn.

HK &

Total

Japan;

124companies

69co.

Taiwan;43co.

4.9bn.

¥9.1 bn. 4.0bn.

QOL;

15co.
Service; 1.3bn.
16co.1.3bn.
Precision

30co.

Total

3.6bn.

124companies

machine; 0.5bn.

¥9.1 bn.

7co.

2.4bn. IT;
56co.

Average investment amount per company (unit: ¥ million)：：
Japan 59, China, HK & Taiwan 113 / QOL 119, IT 44
http://www.jaic-vc.co.jp- 12 -

2. Results for 1Q FY March 2019 – Business report – Updates on investee companies

TMS Co., Ltd.

mtes Neural Networks Co., Ltd.

Development of treatment for acuteacute-stage
cerebral infarction patients

IoT platform using LoRa

• Aims to extend the time limit from onset to treatment
from 4–5 hours for existing drugs to 12 hours.
• In June 2018, TMS concluded an option contract with
Biogen, an U.S. major bio pharmaceuticals firm.
• TMS earned approx. ¥0.4 billion of lump-sum payment
from this contract.
• Approx. ¥1.8 billion will be paid to TMS when Biogen
exercises its option in the future.
• TMS can also receive up to approx. ¥33.5 billion of
lump-sum payment depending on the the development
and sales situations and royalties in stages dependingon sales.
• Established February 2005; capital: ¥99 million
http://www.jaic-vc.co.jp• An IoT platform business and health monitoring businesscovering energy, human, and structures, using LoRa, awifi communication system that covers a broad range
with few electric power.
• In June 2018, a capital increase by thirdthird-party allotment
by TOPPAN FORMS CO., LTD. was decided. mtes will
be an affiliate of Toppan Forms after the capital increase.
• The procured funds will be allocated to the establishmentof an IoT platform, the development of an AI robot center,and the employment of personnel specializing in AI.
• A capital partnership was formed with TOPPAN FORMS
in October 2017. The relationship will further deepen due
to this capital increase, with mtes accepting one officer.
• Established March 2015; capital: ¥715 million- 13 -

2. Results for 1Q FY March 2019 – Business report –Renewable energy project investment

Investment execution : 4 projects, ¥1.3 bn.
Location

Energy source

Generation
capacity

Notes

Mie

Wind

16.0MW

Additional investment
in an existing project

Hokkaido

Solar

2.0MW

New project

Gifu

Solar

20.0MW

New project

AomoriBio gas0.03MW

New project

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2. Results for 1Q FY March 2019 – Business report –Renewable energy projects as of June 30, 2018

Mega solar projects

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

Transferred
Attribution to JAIC to be determined

11 projects
9 projects
20 projects

26.9 MW
55.6 MW
82.5 MW
42.6 MW18 projects 111.5 MW
1 project20.0 MW

Other renewable energy projects

Woody biomass; Started electricity sales 1 project 2.0 MW
Bio gas; Under construction
2 projects 1.6 MW
Wind power; Under planning
1 project 16.0 MW

Kumamoto, Solar
1 project 3.1MW

Kagawa, Solar
3 projects 6.3MW
1 project 2.4MW

Aichi, Solar,
1 project 2.3MW

Mie,
Woody biomass, 1 project 2.0MW
Mega solar,
3 projects 28.0MW
Wind power,
1 project 16.0MW

Hokkaido, Solar,
1 project 4.4MW
2projects 17.7MW

Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
3 projects 7.3MW
1 project 2.7MW
Miyagi, Solar,
1 project 2.4MW
Fukushima, Solar,
1 project 1.2MW
1 project 2.4MW
Ibaragi, Solar,
1 project 2.3MW
Tokyo, Bio gas,
1project 1.6MW* 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- 15 -

2. Results for 1Q FY March 2019 – Business report –Renewable energy projects as of June 30, 2018
EnergySourceSolar

No.

Location

Generation
Capacity [MW]Current status

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

Investors

1

Nishiki-cho, Kuma-gun, Kumamoto

3.1

Started electricity sales in Dec. 201540

approx. 1.05

Joint investment

2

Tkokoname-shi, Aichi

2.3

Started electricity sales in Aug. 201636

approx. 0.78

Joint investment

3

Fujisawa-cho, Ichinoseki-shi, Iwate

2.3

Started electricity sales in Sep. 201636

approx. 0.73

Joint investment

4

Tsukubamirai-shi, Ibaragi

2.3

Started electricity sales in Mar. 201736

approx. 0.85

Joint investment

5

Nomaike, Sanuki-shi, Kagawa

2.4

Started electricity sales in May. 201736

approx. 0.8

Joint investment

6

Yama-gun, Fukushima

1.2

Started electricity sales in Sep. 201736

approx. 0.34

Joint investment

7

Mitakabeike, Sanuki-shi, Kagawa

1.5

Started electricity sales in Sep. 201732

approx. 0.5

Joint investment

8

Hanaizumi-cho, Ichinoseki-shi, Iwate

2.4

Started electricity sales in Jan. 201836

approx. 0.8

Joint investment

9

Obihiro-shi, Hokkaido

4.4

Started electricity sales in Mar. 201840

approx. 2.2

JAIC

10

Nakaoudaike, Sanuki-shi, Kagawa

2.4

Started electricity sales in Apr. 201836

approx. 0.86

Joint investment

11

Yoshitaka, Fujisawa-cho, Ichinoseki-shi, Iwate

2.6

Started electricity sales in Jun. 2018

36－

Joint investment

12

Higashioudaike, Sanuki-shi, Kagawa

2.4

Under construction or Under planning（※Started electricity sales in Jul. 2018）

36－

Joint investment

13

Suzugasawa, Fujisawa-cho, Ichinoseki-shi, Iwate

2.7

Under construction or Under planning

36－

Joint investment

14

Miyagi

2.4

Under construction or Under planning

36－

Joint investment

15

Mie

2.4

Under construction or Under planning

32－

Joint investment

16

Mombetsu-shi, Hokkaido

15.7

Under construction or Under planning40

approx. 6.6

Joint investment

17

Hokkaido

2.0

Under construction or Under planning

36

－

JAIC

18

Mie

24.4

Under construction or Under planning

24－

Joint investment

19

Fukushima

2.4

Under construction or Under planning

32－

Joint investment

20

Mie

1.2

Under construction or Under planning（※Transferred in Jul. 2018）32－

Joint investment

Total 82.5MW [attributable to JAIC 42.6MW]

http://www.jaic-vc.co.jp- 16 -

2. Results for 1Q FY March 2019 – Business report –Renewable energy projects as of June 30, 2018
Energy Source

No.

Location

Generation
Capacity [MW]Current status

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

Investors

Solar

Gifu

20.0

Under construction or Under planning

40

－

-

Woody biomass

Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018－－

Joint investment

Bio gasHamura-shi, Tokyo

1.6

Under construction or Under planning

39－

Joint investment

Aomori

0.03

Under construction or Under planning

39－

Joint investment

Mie

16.0

Under construction or Under planning

22－

Joint investment

Wind power

http://www.jaic-vc.co.jp- 17 -

2. Results for 1Q FY March 2019 – Business report –Renewable energy projects – investment case 1

Aquatic power plant in Nakaoudaike,
Nakaoudaike, Sanuki,
Sanuki, Kagawa Prefecture
started electricity sales
Name of power plant：
Nakaoudaike solar power plant
Maximum output：approx. 2.4MW*Solar cell panel system capacity basis

Expected annual power generation：
approx. 3.06million ｋWh*Equivalent to annual power consumption of approx. 690 average
households

Total project amount：approx. 0.86 billion yen*80% of total project amount is procured from project finance fromfinancial institutions

Feed-in tariff : 36/kWh [ex. Tax]
Started electricity sales in Apr. 2018
JAIC’s third mega solar power plant on water completed (*The fourth was also completed on July 1) By
constructing the power plant on water, costs for reclamation work to flatten the ground for panel installation will
become unnecessary
Solar radiation conditions are good since there are no obstacles around
The temperature of the panels are kept low due to the cooling effect of the water‘s surface, enabling the power
plant to maintain power generation efficiency
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2. Results for 1Q FY March 2019 – Business report –Renewable energy projects – investment case 2

Partially completed solar sharing power plant
Name of power plant:
Ichinoseki-shi Yoshitaka solar power plant
Location: Fujisawa-cho, Ichinoseki-shi, Iwate
Maximum output: approx. 2.6MW *Part of 5.3MW
Expected annual power generation:approx. 3.04 million
kWh*Equivalent to annual power consumption of approx. 687 average
households

Started electricity sales on June 30, 2018
Joint investment with Renewable Japan Co., Ltd. and
TOKYU LAND CORPORATION
Project finance from The Tohoku Bank, Ltd.
EPC by Mitsubishi Electric System & Service Co., Ltd.

Sharing sunlight between power generation and agriculture
Of the two power plants (5.3MW in total), one (2.6MW) was completed
Posts are planted on farmland and panels are installed at certain intervals, under the panels barley isgrown using large agricultural machines
Part of the income of the power generation business will be paid as farming support costs over twenty
years to contribute to regional re-creation
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2. Results for 1Q FY March 2019 – Business report –Renewable energy projects – total project amount
Expected total amount of projects
planned to be long held(*1)(*1) The sum of the expected amounts of 18
projects to be long held (incl. those for whichasset management is done by another firm), in
which investment is carried out as of end of
March 2018.
The breakdown of funds procured is the forecast
amount upon completion of the projects.

Total amount of projects¥31.4 bn.
[100％
[100％]

Nonrecourse loan
¥25.3 bn.
[80.6％[80.6％]
Invested by others¥3.3 bn.[10.6％
bn.[10.6％]

Nonrecourse loan
Total amount of projects(*2) Off-balance
portion not bookedin the BS of theprevious accounting
standards
Invested by
JAIC ¥2.8
bn.[8.8％
bn.[8.8％]¥79.5 bn.
[100％
[100％]*2¥64.1 bn.
[80.6％[80.6％]

Invested by others¥8.4 bn.[10.6％
bn.[10.6％]
Invested by JAIC
¥7.0 bn.[8.8％bn.[8.8％]

The expected total amount of projects to be long held as of end of March 2018 is ¥31.4 billion.
Based on the previous accounting standards, other than ¥2.8 billion “invested by JAIC” (8.8%) of the total amount ofprojects are off-balance*2.
In the medium-term management plan,*3 JAIC aims to increase investment by JAIC to ¥7 billion by end of March 2021.
Assuming that the same percentage of funding will be carried out in projects invested in the future as in existing
projects to be long held, the total amount of projects that correspond to JAIC’s investment of ¥7 billion will increase to¥79.5 billion.

(*3) Medium-term business plan for March 2019 through March 2021. The medium-term business plan and the contents of this document are based on materials available atthe time of its compilation and no guarantee can be made as to the continued accuracy and reliability of the material. Various factors could cause actual results to differ
materially.
http://www.jaic-vc.co.jp- 20 -

3. Result forecast for FY Mar 2019 (Previous accounting standard)
Previous accounting standard

Amount(million yen)

Progression
ratio

3,450

189

5.5%

Assumptions for the result forecast as
start of term・Fund management operation fees arefor existing portions only. No successfees are expected.

240
2,800
400
10

65
70
40
12

27.2%
2.5%
10.2%
123.4%

・Proceeds and cost of private equity
securities sold consist mainly of IPOs in
Japan and sales of unlisted shares inGreater China

1,650

487

1,300
350
-

64
415
6

1,800
1,100
700
550
470

(297)
239
(537)
(537)
(539)

Result forcast FY2019
Amount(million yen)

Operating revenue
Fund management operation
Proceeds of sales of securities (private eqity)
Proceeds of sales of securities (project)
Fund interests income etc.
OthersOperating cost
Cost of securities sold (private equity)
Cost of securities sold (project)
Investment write-offs & provision for allowance for possible investment losses

OthersOperating gross profit
SG&A expenses
Operating income
Ordinary Income
Profit attributable to owners of parent

Actual 2019/3(1Q)

29.5% ・Fund interests income etc. of operating
5.0%
118.7%-

revenue includes the proceeds of salesof renewable energy projects andrevenues from mega solar projects- ・Non-operating income includes foreignexchange gains, and non-operating
21.8%
expenses include interest expenses.
Extraordinary loss/income is notexpected.
・Tax burden due to taxable income isexpected.

No change from start of term; gains on sale are expected to be concentrated in Q4
Expected to compensate for the excessive write-offs and allowance with gain on sale of sharesthrough IPOs
The result forecast are based upon the information currently available to JAIC at the time of writing and certain assumptions. The achievement is not promised.
Various factors could cause actual results to differ materially from these result forecasts.
http://www.jaic-vc.co.jp- 21 -

4. Appendix

AUM of Funds

P23

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

P24

Funds & investment activities

P25

Business results & financial position （Previous accounting standards)

P26

Statement of Income – break down (Previous accounting standard)

P27

JAIC-Backed IPOs

P28

Core competence

P29

Profit structure

P30

Company data

P32

http://www.jaic-vc.co.jp- 22 -

5. Appendix – AUM of Funds
New & increased

AUM of funds

funds

New & Increased Funds

JPY million

10,0005,000

AUM of Funds - total

JPY million

100,000

85,873

5,201

50,0004,548
19,150500

1,000

17,601
600

0

0
13/3

14/3

15/3

16/3

17/3

18/3

19/3(1Q)

Obtained investment of ¥600 million through additional solicitation forsubscription to business succession-type buyout fund
AUM decreased, affected by funds that handed over management to another firm
http://www.jaic-vc.co.jp- 23 -

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

Investment by fuds
5.4

¥17.6 bn.

Investment balance¥13.8 bn.

Principal investment
by JAIC 8.4

2.2

1.5

8.2

2.5

Other
investors'
interests infunds
31
Other than consolidated anonymous partnership

Balance of
operational investment securities

5.8

2.6 ※

2.2

(Previous Accounting Standard)

OthersBalance of(Fund Consolidated
Accounting Standard)¥9.8 bn.

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

JAIC's interests in funds
Other investors' interests in consolidated funds¥11.2 bn.
operational investment securities

0.5

Consolidated anonymous partnership

Cash etc. in Funds
5.8

2.2

1.5 0.3

Accumulated profits, Losses & distributions
Uncalled commitments to Funds
Note:
Of the principal investment by JAIC, the investment portion inanonymous partnership, which is subject to consolidation, isdeemed investment in a subsidiary under the fund consolidated
accounting standards, and investment is offset by capital.
On the other hand, renewable energy power generation facilities
held by anonymous partnerships are booked as property, plantand equipment under the fund consolidated accounting standard.

- 24 -

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

13/3

14/3

15/3

16/3

17/3

18/3

19/3(1Q)

New & Increased Funds

4,548

-

-

5,201

500

1,000

600

AUM of Funds - total

85,87350,88843,89739,33528,753

19,15017,601

14,004

9,427

5,867

5,801

AUM of Funds - JAICNew Investnemts

4,746

4,189

2,728

4,093

4,315

3,887

1,429

Balance of Investments

33,88625,862

19,722

18,783

16,55813,981

13,813

http://www.jaic-vc.co.jp- 25 -

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

13/3

14/3

15/3

16/3

17/3

18/3

19/3(1Q)

Business Results
Operating Revenues

3,784

6,155

4,532

4,043

3,926

5,403

189

Operating Gross Profit

176

2,474

882

1,554

2,176

2,328

(297)

SG&A Expenses

2,000

1,621

1,433

1,472

1,339

1,311

239

Operating Income(1,823)

852

(550)

82

836

1,017

(537)

Ordinary Income(2,612)

374

(610)

612

726

954

(537)

Net Income(2,575)

462

(850)

597

553

874

(539)

8,550

10,428

9,437

8,202

6,213

7,308

4,695

-

608

1,337

3,722

4,081

3,582

4,660

15,452

12,38010,364

8,226

7,356

6,030

5,501

25,43324,01020,193

16,91014,128

11,954

10,486

Total shareholders' equity

1,565

2,573

3,373

4,976

5,686

6,545

5,990

Total assets

28,272

27,302

24,396

22,68020,305

19,22017,218Financial Position
Cash and deposits
Operational investment securities of project related
investment
Operational investment securities after deducting
allowance for possible investment loss (Private equity)
Loans payable, bonds & bonds with subscription rights
to shares

http://www.jaic-vc.co.jp- 26 -

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

13/3

14/3

15/3

16/3

17/3

18/3

18/3(1Q)

19/3(1Q)

Change(%)

１ ． Fund management operation
Fund management fees and others
Success Fees

Operating Revenue
Operating Cost
Operating Gross Profit
２ ． Investment operation

Proceeds of sales of securities (A)Fund interests income etc.
Income gains

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
３ ． Others
Operating Revenue
Operating Cost
Operating Gross Profit

Total
Operating Revenues
Operating Cost
Operating Gross Profit

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

815
37

733
132

571
63

441
288

364
101

277
86

63
50

65
-

2.1%
-

852
852

865
865

634
634

729
729

466
466

364
364

114
114

65
65

(43.2%)(43.2%)

2,411
194
95

4,656
357
121

3,651
100
93

2,954
295
49

2,275
1,128
30

3,219
1,612
64

156
418
19

70
40
3

(54.7%)(90.2%)(80.3%)

2,701

5,134

3,844

3,300

3,434

4,897

593

115

(80.5%)

1,385

2,133

1,767

1,863

1,423

2,469

62

64

4.4%

2,038

1,480

1,704

569

274

562

33

415

1152.6%

158

52

168

47

46

36

4

5

19.3%

3,582
(880)

3,666
1,468

3,640
203

2,481
818

1,744
1,690

3,069
1,827

99
493

485
(370)

386.2%
-

229
25
204

154
15
139

53
9
44

13
7
5

25
6
19

142
5
136

8
1
6

8
1
7

2.1%
(7.2%)
4.0%

3,784
3,607
176

6,155
3,681
2,474

4,532
3,650
882

4,043
2,488
1,554

3,926
1,750
2,176

5,403
3,074
2,328

717
101
615

189
487
(297)

(73.6%)
380.6%-- 27 -

5. Appendix - JAIC-Backed IPOs

Total 12

No.of IPOs(Overseas)3

No. of IPOs(Domestics)
8

8

4

2

5

9

5
0

1

13/3

4

4

14/3

15/3

6

2

5

16/3

17/3

Investment multiple by Initial price (First price multiple)

1
1

0

18/3

19/3(1Q)(Investment multiple)

13/3

14/3

15/3

16/3

17/3

18/3

Domestics

1.5

15.2

4.9

1.7

5.6

3.1

Overseas

3.4

2.2

1.8

-

-

3.2

Note
1: IPOs include acquisition by listed company as a result of equity swap etc. (2 in 2014/3, 2 in 2015/3, 2 in 16/3 and 1 in 17/3).
2: First price multiple = Gross market capitalization at first price/Total our acquisition cost. However, the calculation of the first price multiple does not include the companies
whose shares are acquired by listed companies as a result of equity swaps etc.

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

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.
- 29 -

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- 30 -

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- 31 -

5. Appendix - Company data (as of June 30, 2018)
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)

Abbreviation; JAIC

Number of employees 41 (Consolidated) /24 (Non-consolidated)
Main business・Private equity investment
・Project oriented investment

Directors

Chairman [Outside] Yoshiaki Kawamata ; Chairman of the Board
President & CEO

Tetsuro Shimomura

Managing Director

Kazunori Omori; Chairman of Audit & Supervisory Committee

Director [Outside/Independent] Hitoshi Yasukawa; Member of Audit & Supervisory Committee
Director [Outside/Independent] Tadashi Nunami; Member of Audit & Supervisory Committee
http://www.jaic-vc.co.jp- 32 -

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- 33 -