Financial Results Overview
for the 1st Quarter Ended
June 30, 2021
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: August 13, 2021

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.

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

Contents

1 SummaryP3

2 Results for 1Q of FY Mar. 2022 (year-on-year)

P4

3 Result forecasts for FY 2022

P9

4 Business Report

P12

5 Appendix

P21

Note: The figures in this document are based on consolidated financial statements
prepared in accordance with the previous accounting standards.
https://www.jaic-vc.co.jp-2-

1. Summary
 Results for 1Q of FY Mar. 2022 (year-on-year)•••

Operating revenue of ¥ 168 million (down, 40.1 % year on year) and deficit of ¥ 287 million (increased ¥46
million year on year).
The main factors for decrease in operating revenue were a decrease in revenue from selling electricity and adecrease in profits from funds operated by third parties.
The deficit widened due to a decrease in capital gains and a decrease in profits from operating projects.

 Result forecasts for FY 2022••

Full-year earnings forecasts unchanged. The results for the 1Q are in line with expectations.
A loss is expected for the first six-month period and the first nine-month period as the gain on sale will beconcentrated in the 4th quarter.

 Business Report
We will thoroughly carry out investment activities with a strong awareness of SDGs based on our management
policy.
• A solar power plant has started operation in Tsu City, Mie• Expanding the vegetable plant in Tamba Sasayama City, Hyogo• Invested in a new distribution center project in Sayama City, Saitama• A group home for the handicapped has newly been built up in Utsunomiya City, Tochigi• Business development of investee companies:
Renewable Japan, Smart Solar, WonderPlanet, HiTTO, iHeart Japan and TMS• "Financial Institution YOM" No. 40 was published as a special issue commemorating our 40th anniversary
https://www.jaic-vc.co.jp-3-

2. Results for 1Q of FY Mar. 2022

Outline of results

P5

Break down of operating revenue & operating cost

P8

https://www.jaic-vc.co.jp-4-

2. Results for 1Q of FY Mar. 2022 - Outline of results - I/S(million yen)

FY 2021 (1Q)
AmountFY 2022 (1Q)
AmountChangeOperating revenue282

168 (40.1%)

Operating cost270

165 (38.9%)

Operating gross profit11

3 (70.1%)

SG&A expenses

257

273

6.3%

Operating income

(246)

(270)

-

Ordinary income

(246)

(286)

-

(241)

(287)

-

Profit attributable to ownersof parent Factors for decrease in revenue:• Revenue from selling electricity decreased due to the sale of some mega solar projects that are
selling electricity in the previous fiscal year
• Profits from funds operated by third parties decreased
 Factors for decrease in profit:• Capital gains decreased due to unlisted shares of an investee those were liquidated byprioritizing collection of funds over capital gain
• Profits from projects operated by the JAIC Group decreased due to the sale of some mega solar
projects in the previous fiscal year
https://www.jaic-vc.co.jp-5-2. Results for 1Q of FY Mar. 2022 - Outline of results - B/S
As of Mar 2021

Total assets

FY 2022 (1Q)

AmountAmount(million yen)(million yen)

14,657

13,900fluctuation factors

Change(billion yen)

(5.2%)
repayments of loan (0.5), execution

3,699

2,781

Project oriented investment securities & loans

5,583

5,646

1.1% +0.1

Strategic investment securities in partner

1,155

1,355

17.3% execution of investments +0.2

allowance for possible investment loss

3,111

3,047

(2.1%) distribution & collection (0.1)

Loans payable

6,950

6,442

(7.3%) repayments of loan (0.5)

Total shareholders' equity

7,338

6,998

(4.6%) unrealized gain (0.05)

Cash and deposits

companies
Financial investment securities after deducting

(24.8%) of investments & loans (0.4),

expenses etc.(0.3), collection +0.2
execution of investments & loans

loss (0.28)

Asset replacement is in progress from financial investment to project oriented investment and strategic investment.
After securing investment funds for future growth, we repay the debt and steadily reduce the balance.

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

2. Results for 1Q of FY Mar. 2022 - Outline of results - C/F(JPY million)

FY 2021 (1Q)

FY 2022 (1Q)

Operating CF

28

(533)

Investing CF

39

(0)

Financing CF

(513)

(507)

Change in Net CF(449)(1,024)

2,274

2,276

Cash & cash equivalents at endof period Operating CF turned negative as investment execution progressed while investment recovery
decreased.

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

2. Results for 1Q of FY Mar. 2022 - Break down of operating revenue & operating cost
Total

（JPY million）

Private equity investment

Project oriented investment

FY 2021(1Q)

FY 2022(1Q)

FY 2021(1Q)

FY 2022(1Q)

FY 2021(1Q)

FY 2022(1Q)

282

168

200

150

81

18

Fund management fees etc.

45

41

43

39

1

1

Proceeds of sales of securities

73

104

73

104

0

-

Fund interests income etc.

150

9

79

3

71

6

Other operating reveue

12

12

3

2

8

9

270

165

227

145

43

20

19

88

19

88

0

-

0

28

0

28

-

-

Fund interests losses etc.

249

46

206

27

43

18

Other operating costs

1

2

1

1

-

1

11

3

(27)

5

38

(2)

Operating revenue

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

Operating gross profitPrivate equity investment – Revenue decreased, however, operating gross profit turned into the black.
•
Of operating revenue, fund interests income etc., decreased due to a decrease in profits from funds operated by third parties•
Of operating cost, cost of securities sold, increased due to unlisted shares of an investee those were liquidated by prioritizingcollection of funds over capital gain•
Of operating cost, fund interests losses etc., decreased due to a decrease in loss from a fund operated by third partyProject oriented investment – Revenue decreased and operating gross profit went in the red.
•Of operating revenue, fund interests income etc., decreased due to the sale of some mega solar projects that are sellingelectricity in the previous fiscal year•
Of operating cost, fund interests losses etc., decreased due to a drop in advance cost from the vegetable plant

https://www.jaic-vc.co.jp-8-

3. Result forecasts for FY Mar. 2022

Breakdown of result forecast

P10

Cautionary statements

P11

https://www.jaic-vc.co.jp-9-

3. Result forecasts for FY Mar. 2022- Breakdown of result forecast(million yen)

Actual
FY 2022(1Q)
Amount

1st Half of FY2022

FY. 2022(disclosed on 14 May 2021)(disclosed on 14 May 2021)

AmountAmountProgression ratio

168

700

2,950

5.7%

Operating cost

165

360

1,320

12.5%

3

340

1,630

0.2%

SG&A expenses

273

560

1,120

24.4%

Operating income

(270)

(220)

510

-

Ordinary income

(286)

(250)

430

-

(287)

(250)

340

-

Profit attributable toowners of parent••

Result forcast

Operating revenue

Operating gross profit••

Result forcast

Result forecasts are unchanged. Results for the 1Q are in line with expectations.
A loss is expected for the first six-month period and the first nine-month period as the gain on sale will
be concentrated in the 4th quarter.
Proceeds of sale of securities are anticipated due to IPOs in Japan and trade sales in China.
The source of stable revenue has changed from electricity sales revenue to capital gains of projects for
short-term holdings.
Profits are anticipated from sales of 4 project oriented investments such as mega solar projects,
distribution center projects and others.

https://www.jaic-vc.co.jp- 10 -

3. Result forecasts for FY Mar. 2022- 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 doesnʼt 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.
https://www.jaic-vc.co.jp- 11 -

4. Business report

Project oriented investment

P13

Private equity investment

P17"Financial Institution YOM" No. 40 commemorating our 40th anniversary

P20

https://www.jaic-vc.co.jp- 12 -

4. Business report – A solar power plant starts operation in Tsu City, Mie (May 2021)

Tsu Solar Power Plant

Outline of power plant

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

Location

Tsu City, Mie

Maximum output*

21.82MW

Expected annual
power generation

27,160MWh

FIT¥24/kWh• The expected annual power generation isequivalent to annual power consumptionof approx. 5,600 average households.
• The PHOTON JAPAN Group, including
PHOTON JAPAN GK, has developed thispower plant, and several investors,
including JAIC, are investing in it.
*solar cell panel system capacity basis**converted at 4,825kWh per annum- 13 -

4. Business report - Smart Agriculture - Expansion of vegetable plant

Expanding Tamba Sasayama Plant, which
grows leaf lettuce, in the adjacent land
Exterior of the first plant

Partnercompany:
MorihisaEngineering

Outline of the second plant (expansion part)
Outline of the first plant (existing part)
Location

Tamba Sasayama City, Hyogo

Plant type

Completely closed

Crops

Leaf lettuce

Production

Approx. 200 tons p.a.

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

Scheduled operation

Full-scale operation scheduled for
December 2021

Plant type

Completely closed

Crops

Leaf lettuce

Production

Approx. 470 tons p.a.
（Total amount with existing part）- 14 -

4. Business report - Distribution Center - New investment

KIC Sayamahidaka Distribution Center
RenderingPartner company:
KIC Holdings
Location

Sayama City, Saitama

Accessapproximately 500m from the
Ken-O Expressway"Sayamahidaka IC",
approximately 4.8km from
Seibu Shinjuku Line "Sayama
City" Station

Outline ofwarehouse(scheduled)

Total floor space: 15,123㎡,
4 floors above ground

Completion

Undecided

https://www.jaic-vc.co.jp- 15 -

4. Business report - Group home for the handicapped - Completion of new project

Social Inclu Home Utsunomiya TakaragichoPartner company:
Social Inclu

Location
No. of rooms
Type of grouphome
Scheduled
operation
https://www.jaic-vc.co.jp

Utsunomiya City, Tochigi
20 for residents, 2 forshort-stayDaytime service support
type
Sep. 2021 (scheduled)- 16 -

4. Business report – Business development of investees – Strategic investment

Renewable Japanconcluded a powerpurchase agreement for
non-FIT solar power
plants with Tokyo Gas• In Feb. 2021 Renewable Japan concluded a power purchaseagreement for non-FIT solar power plants with Tokyo Gas toward
the spread and expansion of renewable energy power sourcesthat do not depend on the FIT for renewable energy.
• Renewable Japan will acquire a small-scale solar power plantdeveloped by Ecostyle Co., Ltd. Tokyo Gas Co., Ltd. will purchase
the generated power and environmental value from Renewable
Japan at a fixed price for 20 years.

Smart Solar household storage
battery has been adopted as a
new product of LIXIL
Corporation

Smart Solar's household storage battery "Smart Power Storage
System" has been adopted as a new product of LIXIL Corporation,
and was released on April 1, 2021 as a new service.
Company
nameSmart Solar Corporation

Representative

Chief Executive Officer

FeaturesFeatures of “Smart Battery System”
 High performance：
・11.5kWh of large capacity storage battery
・Power conversion efficiency is 97% of the industry's top class・Full load type and 200V compatible, so you can rest assured even during
a power outage
 High quality：
・Durability over 15 years
・15 years product warranty & 10 years natural disaster compensation
・24 hours a day, 365 days a year remote monitoring and on-site support
throughout Japan in the event of a breakdown Low price：
Approximately 87,000 yen per 1kWh, less than 1/3 of the industry average
unit priceHirofumi Tezuka

Company name

Renewable Japan Co., Ltd.

Representative

President and representative director

Features• Regarding renewable energy power plants, Renewable
Japan is engaged in everything from excavation anddevelopment of projects to procurement of development
funds, EPC business, and business management after
the start of power sales.
• “Renewable Japan Energy Infrastructure Fund, Inc.”, the
REIT listed on the TSE, is managed by one of groupcompanies of Renewable Japan.

Incorporation

Jan. 2012

Incorporation

Apr. 2007

URL

https://www.rn-j.com/en/

URL

https://www.smartsolar.co.jp/en/

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

Katsuhito Manabe- 17 -

4. Business report – Business development of investees – IT related investment

WonderPlanet has newly
listed on TSE Mothers

Creating"Smiley Time"in Our Friends'
Daily Life.
Company
nameWonderPlanet Inc.

Representative

Founder & CEO Tomoki Tsunekawa

Business

Planning, development, operation, and sales ofapps and games for smart devices centered on
smartphones【Main titles of games and apps】- JUMPUTI HEROES- CRASH FEVER- Fantastic Days
- DecoLu

HiTTO, an AI chatbot specializing
in internal use, has gained morethan 300,000 users

Company
name

HiTTO,Inc.

Representative Tomohiro Igarashi, Akihito Kimura

Business• Development and provision of in-house AI chatbot
service "HiTTO"• From July 7, 2021, based on the know-how andstatistical data with the largest share, it was
renewed as an HR chatbot equipped with theoriginal AI that systematizes information in the
personnel / labor / general affairs area for the firsttime in the industry.

IPO date

10 Jun. 2021

Stock market

TSE Mothers

Incorporation

Mar. 2006

URL

https://wonderpla.net/en/

URL

https://www.hitto.co.jp/

https://www.jaic-vc.co.jp- 18 -

4. Business report – Business development of investees – Bio tech related investment

TMS receives a lump sumof about 2 billion yen by
out-licensing a pipeline to
BiogeniHeart Japan raised about
800 million yen in Series C• iHeart Japan develops products such as regenerative medicine for thetreatment of severe heart failure due to dilated cardiomyopathy andischemic cardiomyopathy using the multilayer "IHJ-301" consisting ofcells such as heart and blood vessels differentiated from iPS cells.
• iHeart Japan conducts non-clinical trials in collaboration with Kyoto
University, the University of Tokyo and others.
• In April 2020, the clinical research using IHJ-301 planned by Kyoto
University was approved by the Specified Certified Regenerative
Medicine Committee of Kyoto University.
• In July 2021, iHeart Japan raised about 800 million yen in Series C
funding to proceed with clinical research and clinical trials for thepractical application of IHJ-301.
Company
nameRepresentativeiHeart Japan Corporation• The drug candidate "TMS-007" for acute ischemic stroke, which TMS isdeveloping, is expected to extend the administrationable time frame
after the onset to within 12 hours, compared to 4.5 hours after the onsetof the existing drug.
• In May 2021, Biogen, a collaborative research partner, evaluated theresults of the early phase 2 clinical trial conducted by TMS. Biogen has
exercised the option right and acquired exclusive and worldwide
development and sales rights for TMS-007 and backup compounds.
• With this out-licensing, TMS will receive a lump sum of $ 18 million from
Biogen, up to $ 335 million as a milestone for future development andcommercialization. Additionally,TMS has secured the right to earn
gradual royalties from the high single digits to the low 10% range ofannual net sales worldwide.

Company
nameRepresent
ative

TMS Co., Ltd.
President & Representative Director Takuro Wakabayashi

Features• Established to put pharmaceutical seeds into practical use those
provided by the Fermentation Laboratory (Professor Keiji Hasumi)of Tokyo University of Agriculture and Technology• Conducting R&D of pharmaceuticals using SMTP (Stachybotrys
microspora triprenyl phenols), a group of small moleculecompounds that have both thrombolytic and anti-inflammatory
effects

Apr. 2013

IncorporationFeb. 2005

http://www.iheartjapan.jp/en/

URL

http://www.tms-japan.co.jp/

President & CEO Kenji Kakuta

Features• Differentiation control technology that differentiates iPS cells into
cardiomyocytes and vascular endothelial cells• Cell stacking technology that can give cells a multi-layered
structure without necrosis by applying hydrogel particles• Patents for these technologies in major countries

Incorporat
ion
URL

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

4. Business report – Published our special issue of "Financial Institution. YOM"
commemorating the 40th anniversary of establishment

Our company celebrated its 40th
anniversary in July 2021. We
would like to express our deep
gratitude for your support.
Ricky Business Solutions Co., Ltd.
has published "Financial
Institution YOM" No. 40 as a
special issue commemorating our
40th anniversary.
Introducing our SDGs investment
efforts with abundant examples.
http://www.ginkouin.com/
https://www.jaic-vc.co.jp- 20 -

5. Appendix

Renewable energy projects

P22

List of project oriented investments

P23

Strategic investment

P26

Asia network

P27

Funds & investment activities

P28

Business results & financial position

P29

Break down of operating revenue & operating cost

P30

Business field

P31

Core competence

P32

Profit structure

P33

Efforts for SDGs

P35

Company data

P36

https://www.jaic-vc.co.jp- 21 -

5. Appendix - Renewable energy projects as of June 30, 2021

Mega solar projects
Started electricity sales 11 projects (13 power plants) 59.7 MW
Under construction or under planning
5 projects 10.8 MW
Total
16 projects (18 power plants) 70.5 MW
attributable to JAIC
26.7 MWTransfers to buyers other than the funds operated by the JAIC Group

30 projects

149.1 MW

*Underlined projects are invested from
JAIC Solar Fund L.P., Ⅱ

Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
1 project 2.4MW
Fukushima, Solar,
1 project 2.7MW
1 project 2.4MW

Fukuoka, Solar
1 project, 3
power plants
3.0MW in total

Kumamoto, Solar
1 project 3.1MW

Hokkaido, Solar,
2 projects 18.0MW

Tochigi, Solar,
3 projects 6.0MW

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

Tokyo, Bio gas,
1 project 1.1MW
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.
https://www.jaic-vc.co.jp- 22 -

5. Appendix - List of project oriented investments (as of June 2021)
Type ofproject
Solar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]1

Nishiki-cho, Kuma-gun, Kumamoto(*)

3.1

Started electricity sales in Dec. 2015

40

2

Nomaike solar power plant(*)

2.4

Started electricity sales in May. 201736

3

Mitakabeike solar power plant(*)

1.5

Started electricity sales in Sep. 201732

4

Iwate Ichinoseki solar park(*)

2.4

Started electricity sales in Jan. 2018

36

5

Nakaoudaike solar power plant(*)

2.4

Started electricity sales in Apr. 201836

6

Higashioudaike solar power plant(*)

2.4

Started electricity sales in Jul. 201836

7

Mombetsu-shi Kodo solar power plant

15.7

Started electricity sales in Feb. 2020

40

8

Tsu Solar Power Plant

21.8

Started electricity sales in May 2021

24

9Fukushima

2.4

Under construction or Under planning32

10Hirono solar park

2.7

Started electricity sales in Feb. 2020

40

11

Akkeshi Luke Supor Solar Power Plant

2.3

Started electricity sales in May 202040

12Kanagawa

2.4

Under construction or Under planning

32

13

Ukiha-shi, Shirakabe Solar Power Plant
Ukiha-shi, Mizunosato Solar Power Plant
Ukiha-shi, Minou Alps Solar Power Plant

Started electricity sales in Mar.-May 2020

36

14

Tochigi

2.0

Under construction or Under planning36

15

Tochigi

2.0

Under construction or Under planning

32

16

Tochigi

2.0

Under construction or Under planning32

3.0 in total

Total 70.5MW [attributable to JAIC 26.7MW]*Projects that are invested from JAIC Solar Fund L.P., Ⅱ

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

5. Appendix - List of project oriented investments (as of June 2021)
Type of project

No.

Woody biomass
Bio gas1

Location

Generation Capacity[MW]

Current status

FIT[tax excluded, ¥]Matsusaka City, Mie

2.0Started electricity sales in Jan. 2018－

Hamura City, Tokyo

1.1

Started electricity sales in Mar. 2021

39

Food recycle company that generates
biogas for power generation[operator of Hamura biogas power
generation]

－

0.03

Started electricity sales in Nov. 201839

At most 25.2

Under construction or Under planning

22

2

3
Wind power

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

Touhoku Town, AomoriMie- 24 -

5. Appendix - List of project oriented investments (as of June 2021)
Type of project

No.

Vegetable plant
Facilities for theelderly

Group homehttps://www.jaic-vc.co.jp

Project scale

Current status

Tambasasayama City, Hyogo

Annual production: 200 tons

Started operation in Mar. 20191

Shinonome, Koto-ku, Tokyo

8-story complex facility with a capacity of 100
peopleUnder construction or Under planning

2

Minami aoyama, Minato-ku, Tokyo

5-story facility with a capacity of 61 people

Under construction or Under planning

1

Hamamatsu City, Shizuoka

20 rooms for residents, 2 rooms for short stay

Started operation in Aug. 2020

2

Utsunomiya City, Tochigi

Same as above

Scheduled to start operations in
September 2021

3

Hiroshima City, Hiroshima

Same as above

Started operation in Aug. 2020

4

Kazo City, SaitamaSame as above

Under construction or Under planning

Aichi

Site area 1,752 m², 1 basement floor, 6 floors
above ground

Opened*investment in building which has
already started operation

1

Koshigaya City, Saitama

Total floor area 11,250 m², 4 stories above ground

Under construction or Under planning

2

Atsugi City, Kanagawa

Total floor area 10,890 m² (scheduled), 2 stories
above ground

Under construction or Under planning3

Ebina City, Kanagawa

Total floor area 18,808 m², 2 stories above
ground (scheduled)

Under construction or Under planning4

Sayama City, Saitama

Total floor area 15,123 m², 4 stories above
groundUnder construction or Under planning

Commercial
building

Logistics
warehouse

Location- 25 -

5. Appendix – Strategic investment

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.
Morvel Farm (subsidiary of

MD-Farm

KIC Holdings Inc.

Partner company in smart
agriculture projects (strawberries)

Partner company in distribution
warehouse projects

Year of first investment: 2019Year of first investment: 2020

Morihisa Engineering)Partner company in smart
agriculture projects (vegetables)
Year of first investment: 2019https://www.jaic-vc.co.jp- 26 -

5. Appendix - Asia networkhttps://www.jaic-vc.co.jp- 27 -

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

17/3

18/3

19/3

20/3

21/3

21/3(1Q)

22/3(1Q)

New & increased funds

500

1,000

2,000

1,359

151

151

1,001

AUM of funds - total *1

28,753

19,15016,494

17,39016,45017,491

17,020

AUM of funds - JAIC *1

9,427

5,867

5,344

5,163

5,434

5,198

5,470

New investnemts (Total)*2

4,315

3,887

3,749

3,374

1,767

464

862

Balance of investments (Total)*2

16,55813,981

13,951

15,101

12,855

15,512

13,522

New investnemts (project oriented investment)*2

3,184

2,681

3,612

2,150

1,445

184

142

Balance of investments (project oriented investment)*2

4,576

3,582

5,514

6,696

6,088

8,560

6,208

New investnemts (private equity)*2

1,131

1,205

136

1,224

322

280

720

Balance of investments (private Equity)*2

11,981

10,398

8,437

8,405

6,767

6,951

7,313

Note 1: Since the number of funds in the course of being wound up while possessing investment assets has increased, funds during the liquidation procedure
are included in the scope of disclosure from FY March 2021.
Note 2: Due to an increase in loan execution for the projects by the JAIC Group, the aggregation method has been changed from FY March 2021 to include
loans extended to the projects (excluding distressed receivables) in the scope of aggregation.

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

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

17/3

18/3

19/3

20/3

21/3

21/3(1Q)

22/3(1Q)

Business results
Operating revenues

3,926

5,403

2,475

2,760

3,089

282

168

Operating gross profit

2,176

2,328

1,286

1,359

1,301

11

3

SG&A expenses

1,339

1,311

1,109

1,094

1,086

257

273

Operating income

836

1,017

177

265

214

(246)

(270)

Ordinary income

726

954

83

140

173

(246)

(286)

Net income

553

874

578

302

144

(241)

(287)

6,213

7,308

5,564

3,920

3,699

2,914

2,781

4,081

3,582

5,514

5,437

5,583

5,789

5,646

100

373

373

1,005

1,155

1,005

1,355

7,256

5,657

4,765

4,282

3,111

4,024

3,047

14,128

11,954

9,784

8,166

6,950

7,653

6,442

Total shareholders' equity

5,686

6,545

6,840

7,223

7,338

6,928

6,998

Total assets

20,305

19,22017,30515,80014,657

14,877

13,900Financial 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 of financial
investment after deducting allowance forpossible investment loss
Loans payable, bonds & bonds with subscription
rights to shares

https://www.jaic-vc.co.jp- 29 -

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

17/3

18/3

19/3

20/3

21/3

21/3(1Q)

22/3(1Q)

Change(%)

１． Fund management operation
Fund management fees and others

364

277

241

199

169

45

41

(9.7%)

Success Fees

101

86

-

-

-

-

-

-

Operating revenue

466

364

241

199

169

45

41

(9.7%)

-

-

-

-

-

-

-

-

466

364

241

199

169

45

41

(9.7%)

Proceeds of sales of securities (A)

2,275

3,219

1,746

2,349

2,221

73

104

43.3%

Fund interests income etc.

1,159

1,677

429

172

648

150

9

(93.6%)

3,434

4,897

2,176

2,521

2,870

223

114

(48.8%)

1,423

2,469

554

965

1,249

19

88

361.5%

274

562

579

245

194

0

28

3637.0%

46

36

49

184

336

249

46

(81.3%)

Operating cost

1,744

3,069

1,182

1,395

1,780

269

163

(39.3%)

Operating gross profit

1,690

1,827

993

1,125

1,090

(45)

(48)

-

Operating revenue

25

142

57

40

49

12

12

3.1%

Operating cost

6

5

6

5

7

1

2

29.7%

Operating gross profit

19

136

51

34

41

10

10

(1.2%)

Operating revenues

3,926

5,403

2,475

2,760

3,089

282

168

(40.1%)

Operating cost

1,750

3,074

1,188

1,401

1,788

270

165

(38.9%)

Operating gross profit

2,176

2,328

1,286

1,359

1,301

11

3

(70.1%)

Operating cost
Operating gross profit
２． Investment operation

Operating revenue
Cost of securities sold (B)Investment write-oﬀs and Provision for allowancefor possible investment losses ( C)Fund interests losses etc.

３． Others

Total

https://www.jaic-vc.co.jp- 30 -

5. Appendix - Business field

Private equity investment

Strategic investment

Project oriented investment

JAIC provides growth capital in venturecompanies and small and medium sizedenterprise (“SME”) with high growth potential,
as well as to SMEs with succession problem.
After the investment, JAIC is committed toprovide various support to achieve growthstrategies of the company by utilizing
JAIC’s resources in Japan and elsewhere in
Asia.

Strategic investment in partnercompanies that correspond toselected themes of JAIC.
JAIC provides “hands-on” support topartner companies to improve its
business promotion and financing
activities, etc.

JAIC has been investing to renewable energy
industries represented by solar energy as well as tohealthcare industry such as nursing facilities andfacilities for persons with disabilities. In addition to
above, JAIC
is determined to invest to new areas such as smartagri business represented by vegetable plant andlogistic industry such as distribution center where
JAIC’s accumulated expertise can be leveraged.

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

5. Appendix - Core competence
Historical background in Asian
regionCapability 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.
https://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.
- 32 -

5. Appendix - Profit structure – Project oriented investment

•

•
•
•

We invest in SPCs (special purpose companies) that own facilities such as power plants, factories,
residential facilities and warehouses. We construct these facilities and receive the profits generated by
the operation of the facilities in proportion to the investment. In some cases, these facilities are sold forprofits after completion.
We invest in projects such as renewable energy, healthcare (facility for the elderly, group homes for thedisabled), smart agriculture (plant factory), and distribution center (logistics warehouse).
We are pursuing high profitability with a small amount of investment funds by procuring non recourse
loans from financial institutions. Most of the funds for the construction and operation of the project is
procured by these loans.
In addition, in order to flexibly invest in projects in various fields, we collaborate with venture companies
that are familiar with project planning and development.

https://www.jaic-vc.co.jp- 33 -

5. Appendix - Profit structure – Private equity investment

•
•
•
•
•

Private equity investment is an investment in promising companies centered on venture companies and small andmedium-sized enterprises in the Asian region including Japan. We support investee companies to increase theircorporate value and obtain capital gains.
We also perform intermediary business as an FA based on the needs of M & A obtained through our investment
activities.
There are two types of private equity investments. One is "strategic investments" in partners of project oriented
investment and the other is "financial investments".
For investees of strategic investments, we not only support them as shareholders, but also manage projects together aspartners and support their growth.
For investees of financial investment, we provide not only the listing support but also provide overseas expansion
support and sales support. We utilize our experience and wide network which we have built up through many years ofinvestment activities when we support our investees. To that end, we are building a network in Asia by forming businessalliances with government agencies in China and partner companies in Asian countries.

https://www.jaic-vc.co.jp- 34 -

5. Appendix – Efforts for SDGs
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.

https://www.jaic-vc.co.jp- 35 -

5. Appendix - Company data (as of June 30, 2021)
Company name

Japan Asia Investment Co., Ltd.

Head office

2F Medical Friend Building, 3-2-4 Kudn-kita, Chiyoda-ku, Tokyo 1020073, Japan

Established

July 10, 1981

Paid-in capital

5,426 million yen

Listed market

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

Employees

38 (Consolidated) /18 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

Chairman of the Board :Yoshiaki Kawamata [Outside/Independent]
President & CEO:Tetsuro Shimomura
Managing Executive Officer in charge of 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]

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

Abbreviation; JAIC

- 36 -

JAIC
Japan Asia Investment Co., Ltd.
https://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.
https://www.jaic-vc.co.jp- 37 -