Financial Results Overview
for the 1st Quarter Ended
June 30, 2019Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )Announcement: August 13, 2019
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.

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

Contents

1 SummaryP3

2 Results for 1Q FY Mar 2020

P4

3 Full-year result forecasts

P10

4 Business Report

P12

5 Appendix

P17

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

1. Summary
 Results for 1Q FY Mar 2020
• Revenues increased 3.7% year on year; deficit decreased ¥0.4 billion.
• Evaluation loss on private equity investment assets decreased significantly.
 Full-year result forecasts• Results are on track. The low progress rate is as expected and there are no changes to the full-year
results forecast at the beginning of the period.
(Progress rate against full-year results forecast: Operating revenue 5.6%; final profit -¥0.64 billion)• Deficit has been expected in the first half from the beginning since profit is concentrated in 4Q.
• Gains on sale of shares are expected in IPOs in Japan and abroad.
 Business Report• The development of mega solar projects with a ¥30-level FIT price is steady, with three newinvestments being executed.
• Two cases of strategic investment in a partner company in project oriented investment have been
carried out.
(One additional investment, one new investment)• IPOs in 1Q onward: StemRim Inc. listed on the Mothers section of the Tokyo Stock Exchange on
August 9.

http://www.jaic-vc.co.jp-3-

2. Results for 1Q FY Mar 2020

Outline of results

P5

Break down of operating revenue & operating cost

P8

Progression status of KPI

P9

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

2. Results for 1Q FY Mar 2020 – Outline of results – I/SFY Mar 2019 (1Q)FY Mar 2020 (1Q)

(Actual)(Actual)AmountAmount(million yen)(million yen)

ChangeOperating revenue

189

196

3.7%

Operating cost

487

59

(87.8%)

(297)

136

-

SG&A expenses

239

255

6.6%

Operating income

(537)

(118)

-

Ordinary Income

(537)

(146)

-

Profit attributable to owners of parent

(539)

(142)

-

Operating gross profit Year on year change: 3.7% increase in revenue; ¥0.4 billion yen reduction in deficit
 Operating revenue increased due to the progress of sale of shares of investee companies thatcarried out IPOs in past fiscal years.
 Deficit decreased due to the significant decrease in evaluation loss of private equity investment
assets of operating cost.

http://www.jaic-vc.co.jp-5-2. Results for 1Q FY Mar 2020 – Outline of results – B/S
As of Mar 2019

FY Mar 2020 (1Q)

(Actual)(Actual)AmountAmount(million yen)(million yen)

Change17,30516,029(7.4%)(a) Cash and deposits

5,564

3,724

(33.1%)(b) Project oriented investment securities

5,514

5,923

7.4%

Strategic investment securities in partner companies

373

685

83.8%

4,765

4,677

(1.8%)（c） Loans payable

9,784

8,887

(9.2%)

Total shareholders' equity

6,840

6,615

(3.3%)(a) + (b) - （c）

1,294

759

(41.3%)

Total assets

Private equity investment securities after deducting
Allowance for possible investment loss except strategic
investment in partner companies

 Outstanding project oriented investment: The balance increased due to steady investment
 Outstanding strategic investment: The balance increased due to two investments
 Financial balance: Maintained a positive balance despite a decrease due to repayment of borrowings(Cash & deposits + project oriented investment – loans payable)

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2. Results for 1Q FY Mar 2020 – Outline of results – C/F(JPY million)

FY Mar 2019 (1Q)FY Mar 2020 (1Q)

(Actual)(Actual)Operating CF

(172)

(187)

Investing CF

(25)

43

Financing CF(1,468)

(896)

(13)

5

3,078

3,048

Change in Net CF
Cash & Cash Equivalents at End
of Period Operating CF: Net cash used was ¥187 million
Ended in negative cash flow due to the booking of net loss and the implementation of
investment
 Investing CF: Net cash provided was ¥43 million
Turned positive due to redemption of a fund
 Financing CF: Net cash used was ¥896 million due to repayment of borrowings
The extent of negative cash flow improved significantly year on year due to the
reduction of the repayment amount to correct the financing policy of placing priority on
repayment
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2. Results for 1Q FY Mar 2020 –Break down of operating revenue & operating cost
Total
（JPY million）(Actual)(Actual)(Actual)(Actual)(Actual)

189

196

154

157

34

38

Fund management fees etc.

65

55

64

54

0

0

Proceeds of sales of securities

70

90

70

90

-

0

Fund interests income etc.

44

40

17

8

27

32

Other operating reveue

8

10

1

4

6

5

487

59

487

59

-

-

64

50

64

50

-

-

415

5

415

5

-

-

Fund interests losses etc.

5

1

5

1

-

-

Other operating costs

1

1

1

1

-

-

(297)

136

(333)

98

34

38

Operating revenue

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

Operating Gross ProfitProject oriented investment

FY Mar 2019 (1Q) FY Mar 2020 (1Q) FY Mar 2019 (1Q) FY Mar 2020 (1Q) FY Mar 2019 (1Q) FY Mar 2020 (1Q)
(Actual)

Private equity investment

In private equity investment, operating gross profit turned positive.
The main reason is the significant drop in evaluation loss due to the small damage to investment assets in thequarter under review, while a large amount of evaluation loss was incurred in the same period of the previous year
due to the drop in expected collection from overseas investee companies.
In project oriented investment, interest income of roughly the same amount from the same period last year wasbooked.
The profit from projects with electricity sales minus the advance development costs of projects under construction
was booked as interest income. The profit from projects that were completed during the previous quarter and a dropin temporary costs contributed.

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

2. Results for 1Q FY Mar 2020 – Progression status of key performance indicators

Strategy

Expand stable revenue
from project oriented
investment assets

Replacement of private
equity investment assets

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

Key goal indicator

FY2021

Final profit

0.7 billion yen

ROE

9％
KPI
FY Mar. 2020-1Q

KPI
FY Mar. 2021

Balance of project oriented investment
assets

5.9 billion yen

9.0 billion yen

Unrealized gains of project oriented
investment assets (expected cumulative
profits before discounting)

8.3 billion yen

20.0 billion yen

Balance between the sum of cash anddeposits and project oriented investment
assets and borrowings+0.7 billion yen+5.6 billion yen

Promotion of early liquidizing andmonetization of existing assets

Balance of investment
4.6 billion yen（net of provisions）

Balance of investment
1.0 billion yen（net of provisions）

・Establishment of funds for new
investments
・Implementation of strategic investments

Balance of investment
0.6 billion yen

Balance of investment
1.0 billion yen

Measures-9-3. Full-year result forecasts
 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 doesn’t 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 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- 10 -

3. Full-year result forecasts –Result forecast consolidated under the Previous Accounting Standard
FY Mar 2020
(1Q)

込Result forcast FY2020

Result forcast FY2020 1st Half

(Disclosed on May 15, 2019)(Actual)AmountAmount(million yen)(million yen)AmountProgression ratio(million yen)

Progression ratio

196

600

32.7%

3,500

5.6%

59

290

20.5%

1,600

3.7%

Operating gross profit

136

310

44.2%

1,900

7.2%

SG&A expenses

255

550

46.5%

1,100

23.2%

Operating income

(118)

(240)

-

800

-

Ordinary Income

(146)

(320)

-

650

-

Profit attributable to owners of parent

(142)

(330)

-

500

-

Operating revenue
Operating cost






1Q business results were on track, with no changes to the result forecast FY2020.
The low progress rate against the expected full-year business results is as estimated.
Since gain on sale of shares will be concentrated in 4Q, a deficit had been expected for 1H fromthe beginning.
There is high anticipation toward IPOs of investees both in and outside Japan.

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4. Business report

Private equity investment

P13

Project oriented investment

P15

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4. Business report - Private equity investment – Investment execution case

Investment execution : 5 companies, ¥ 760 million
Smart Solar Corporation
One of JAIC’s partner companies in the filed ofmega solar project oriented investment

MorihisaEngineering Co., LTD.
One of JAIC’s partner companies in the filed ofsmart agriculture related investment.

Uetani Co., Ltd.
The first investment project of the businesssuccession fundA long-established company handlingcommercial facility interior and custom-madefurniture manufacturing

The Navel
Japan Ltd.
A local trade company in Matsusaka, Mie
prefecture, founded by the Daisan Bank, Ltd.,and others
1 IT-related company

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4. Business report- Private equity investment – Strategic investment in partner companies

Investment cases
Renewable Japan Co., Ltd.
One of JAIC’s partner companies in
the filed of renewable energy related
investment

Smart Solar Corporation
One of JAIC’s partner companies in
the filed of mega solar project
investment

Morihisa Engineering Co., LTD.
One of JAIC’s partner companies in
the filed of smart agriculture related
investment.

••

Creates new businesses that can procure loan funds from financial institutions and invests in thebusiness (project oriented investment), as well as focuses on “strategic investment” that invests inpartner companies of the new businesses (private equity investment).
Supports the growth of investee companies not only as an investor but also as a business partner.

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4. Business report - Project oriented investment – Investment execution

Investment execution : 4 projects, ¥ 380 million
No.

Location

Project type

Generation capacity

Notes

1

Tochigi

Solar power

2.0MW

New project; FIT ¥32

2

Tochigi

Solar power

2.0MW

New project; FIT ¥32

3

Tochigi

Solar power

2.0MW

New project; FIT ¥36

4

Hyogo

Vegetable factory-

Additional investment of the factory’s
operation funds••

Investments in mega solar projects with a ¥30-level FIT price are under progress.
The vegetable factory is being operated steadily with the aim of full operation by
March 2020.

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

4. Business report - Project oriented investment - Renewable energy projects
as of June 30, 2019

Mega solar projects
Started electricity sales
Under construction or under planning
Total
attributable to JAIC

12 projects 29.8 MW
12 projects 70.0 MW
24 projects 99.8 MW
56.4MWother than above

Transferred

22 projects

119.7 MW

Other renewable energy projects
Woody biomass; Started electricity sales 1 project 2.0 MW
Bio gas; Started electricity sales 1 project 0.03 MW
Bio gas; Under construction
1 project 1.6 MW
Wind power; Under planning
1 project at most 25.2 MW
Fukuoka, Solar
1 project
2.9MW

Kumamoto, Solar
1 project 3.1MW
1project 11.8MW

Hokkaido, Solar,
1 project 4.4MW
3 projects 20.0MW
Aomori, Bio gas,
1project 0.03MW
Iwate, Solar,
4 projects 10.0MW
Miyagi, Solar,
1 project 2.4MW
Fukushima, Solar,
1 project 1.2MW
2 projects 5.1MW

Tokyo, Bio gas,
1project 1.6MW
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

Tochigi, Solar,
3 projects 6.0MW
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.
http://www.jaic-vc.co.jp- 16 -

5. Appendix

Total project amountP18

Estimated cumulative revenue from project invested

P19

List of renewable energy projects

P20

Break down of private equity investment balance

P22

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

P23

Funds & investment activities

P24

Business results & financial position

P25

Break down of operating revenue & operating cost

P26

Core competence

P27

Profit structure

P28

Company data

P30

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5. Appendix – Project oriented investment - total project amount
Expected total amount of 23 projects
planned to be long held andmanaged by JAIC as of June 2019(*1)(*1) The breakdown of funds procured is theforecast amount upon completion of the projects.

Project finance loan
*2
Total amount of projects

Total amount of projects¥29.0 bn.
[100％]



Project finance loan
¥24.0 bn.
[83％]
Invested by others¥1.3 bn.[4％](*2) Off-balance
portion not bookedin the BS of theprevious accounting
standards
Invested by
JAIC ¥3.7
bn.[13％]¥59.2 bn.
[83％]

¥71.4 bn.
[100％]

Invested by others¥3.2 bn.[4％]Invested by JAIC
¥9.0 bn.[13％]The expected total amount of 23 projects to be long held and managed by JAIC as of June 2019 is ¥29.0 billion.
Based on the previous accounting standards, other than ¥3.7 billion “invested by JAIC” (13%) of the total amount ofprojects are off-balance*2.
JAIC aims to increase “investment by JAIC” to ¥9.0 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 ¥9.0 billion will increaseto ¥71.4 billion.

* 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. Various
factors could cause actual results to differ materially.

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5. Appendix – Project oriented investment – Estimated cumulative revenue

Estimation of cumulative revenue from 23 projects to be long held
and managed by JAIC as of June 2019
Expected cumulative
revenue for approx.
20 years (*)
Amount ofinvestment
by JAIC¥ 3.7
bn.
The forecast
amount uponcompletion of all
projects.

Under certain hypotheses
when assuming that theseprojects will continue to beheld;¥ 12 bn.

¥8.3 billion difference=
Unrealized gains(before discounting)* Revenues from electricity sales or vegetable sales minus depreciation, interest expenses and other expenses related to project management.
http://www.jaic-vc.co.jp- 19 -

5. Appendix – List of renewable energy projects as of June 30, 2019
Type ofproject
Solar

No.

Name of power plant or Location

Generation
Capacity [MW]Current status

FIT[tax excluded, ¥]Total amount ofproject [¥ bn.]1

Nishiki-cho, Kuma-gun, Kumamoto

3.1

Started electricity sales in Dec. 201540

approx. 1.05

2

Ichinosekishi Fujisawacho solar power plant

2.3

Started electricity sales in Sep. 201636

approx. 0.73

3Nomaike solar power plant

2.4

Started electricity sales in May. 201736

approx. 0.8

4

Fukushima Inawashiro solar power plant

1.2

Started electricity sales in Sep. 201736

approx. 0.34

5Mitakabeike solar power plant

1.5

Started electricity sales in Sep. 201732

approx. 0.5

6Iwate Ichinoseki solar park

2.4

Started electricity sales in Jan. 201836

approx. 0.8

7

Obihiro solar park

4.4

Started electricity sales in Mar. 201840

approx. 2.2

8

Nakaoudaike solar power plant

2.4

Started electricity sales in Apr. 201836

approx. 0.86

9

Ichinoseki-shi Yoshitaka solar power plant

2.6

Started electricity sales in Jun. 2018

36

－

10

Higashioudaike solar power plant

2.4

Started electricity sales in Jul. 201836

approx. 0.86

11

Ichinosekishi Suzugasawa solar power plant

2.7

Started electricity sales in Oct.. 2018

36

－

12

Kami solar park

2.4

Started electricity sales in Oct. 201836

approx. 0.96

13

Mombetsu-shi Kodo solar power plant

15.7

Under construction or Under planning40

approx. 6.6

14

Hokkaido

2.0

Under construction or Under planning

36

－

15

Mie

21.8

Under construction or Under planning

24

－

16

Fukushima

2.4

Under construction or Under planning

32

－

17

Fukushima

2.7

Under construction or Under planning

40

－

18

Kumamoto

11.8

Under construction or Under planning

38

－

19

Hokkaido

2.3

Under construction or Under planning

40

－

20

Kanagawa

2.4

Under construction or Under planning

32

－

21

Fukuoka

2.9

Under construction or Under planning

36

－

22

Tochigi

2.0

Under construction or Under planning

36

－

23

Tochigi

2.0

Under construction or Under planning

32

－

24

Tochigi

2.0

Under construction or Under planning

32－

Total 99.8MW [attributable to JAIC 56.4MW]

http://www.jaic-vc.co.jp- 20 -

5. Appendix - List of renewable energy projects as of June 30, 2019
Type of project

No.

Woody biomass
Bio gasLocation

Current status

FIT[tax excluded, ¥]Total amount of project[¥ bn.]

Matsusaka-shi, Mie

2.0Started electricity sales in Jan. 2018

－

－

1

Tokyo

1.6

Under construction or Under planning

39

－

2

Aomori Touhokumachi solar power plant

0.03

Started electricity sales in Nov. 201839－

At most 25.2

Under construction or Under planning

22－

Started operation－

Approx. 0.7

Wind power

Mie

Vegetable plant

Tambasasayama-shi, Hyogo

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

Generation Capacity[MW]－- 21 -

5. Appendix - Break down of private equity investment balance

Investment balance : 108 companies, ¥9.0 bn.
【Breakdown by area】【Breakdown by industry】

Others; 11co.

China,HK &Taiwan;41co.

Others;12co.
Service; 1.5bn.
0.3bn.
Japan; 14co.
Total
Total 3.7bn.56co.
1.2bn.

108 companies¥9.0bn.

5.0bn.

Precisionmachine;
7co.

QOL;
29co.
3.6bn.

108 companies¥9.0 bn.

0.2bn.

1.1bn.

0.7bn.

QOL
Total
3.6 bn.

1.6bn.

0.7bn.

2.1bn.IT;
46co.

Medical device & service
Environmental equipment & service
Biotech, drug discovery & medicine
OthersAverage investment amount per company (unit: ¥ million)：
Japan 66, China, HK & Taiwan 122 / QOL 123, IT 44
http://www.jaic-vc.co.jp- 22 -

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

Investment by fuds
5.2

AUM of Funds¥16.1 bn.

7.2

3.4

0.3

Investment balance¥14.9 bn.

Principal investment
by JAIC 9.6

1.9

Other
investors'
interests in
funds
3.3
Other than consolidated anonymous partnership
Consolidated anonymous partnership

Balance of
operational investment securities(Previous Accounting Standard)

6.4

3.3 ※

1.9

¥10.3 bn.

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

JAIC's interests in funds
Other investors' interests in consolidated funds
Others¥12.2 bn.
Balance of
operational investment securities(Fund Consolidated
Accounting Standard)

0.6

Cash etc. in Funds
Accumulated profits, Losses & distributions
6.4

1.9

1.4 0.6

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.

- 23 -

5. Appendix - Funds & investment activities(JPY million)
New & Increased Funds
AUM of Funds - total

15/3

16/3

17/3

18/3

19/3

-

5,201

500

1,000

2,000

43,89739,33528,753

19,15016,49414,004

9,427

5,867

5,344

AUM of Funds - JAICNew Investnemts (Private Equity)

1,470

1,304

1,131

1,205

136

Balance of Investments (Private Equity)

18,385

15,061

11,981

10,3988,437

New Investnemts (Project oriented investment)

1,257

2,788

3,184

2,681

3,612

Balance of Investments (Project oriented investment)

1,337

3,722

4,576

3,582

5,514

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

20/3(1Q)
600
17,601
16,150
5,801
5,216
106
764
9,153
9,026
1,323
380
4,660
5,923

19/3(1Q)- 24 -

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

15/3

16/3

17/3

18/3

19/3

19/3(1Q)

20/3(1Q)

Business Results
Operating Revenues

4,532

4,043

3,926

5,403

2,475

189

Operating Gross Profit

882

1,554

2,176

2,328

1,286

(297)

SG&A Expenses

1,433

1,472

1,339

1,311

1,109

239

Operating Income

(550)

82

836

1,017

177

(537)

Ordinary Income

(610)

612

726

954

83

(537)

Net Income

(850)

597

553

874

578

(539)

196
136
255
(118)
(146)
(142)

9,437

8,202

6,213

7,308

5,564

4,695

3,724

1,337

3,722

4,081

3,582

5,514

4,660

5,923

-

100

100

373

373

373

685

10,364

8,126

7,256

5,657

4,765

5,501

4,677

20,193

16,91014,128

11,954

9,784

10,486

8,887

Total shareholders' equity

3,373

4,976

5,686

6,545

6,840

5,990

Total assets

24,396

22,68020,305

19,22017,305

17,218

6,615
16,029Financial Position
Cash and deposits
Operational investment securities of project
oriented investment
Operational investment securities of strategic
investment in partner companies
Operational investment securities after
deducting allowance for possible investment loss
(Private equity except strategic investment in
partner companies)
Loans payable, bonds & bonds with subscription
rights to shares

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

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

15/3

16/3

17/3

18/3

19/3

20/3(1Q) Change(%)

19/3(1Q)

１． Fund management operation

55
55
55

(14.8%)

27.3%

64

90
40
130
50

(22.2%)

579

415

5

(98.6%)

3649

5(64.3%)

1,744

3,069

1,182

485

818

1,690

1,827

993

(370)

1
58
72

53

13

25

142

57

8

17.6%

Operating Cost

9

7

6

5

6

1

Operating Gross Profit

44

5

19

136

51

7

10
1
8

Operating Revenues

4,532

4,043

3,926

5,403

2,475

189

Operating Cost

3,650

2,488

1,750

3,074

1,188

487

882

1,554

2,176

2,328

1,286

(297)

Fund management fees and others

571

441

364

277

241

65

Success Fees

63

288

101

86

-

-

Operating Revenue

634

729

466

364

241

65

-

-

-

-

-

-

634

729

466

364

241

65

3,651

2,954

2,275

3,219

1,746

70

193

345

1,159

1,677

429

44

3,844

3,300

3,434

4,897

2,176

115

1,767

1,863

1,423

2,469

554

1,704

569

274

562

168

47

46

3,640

2,481

203

Operating Revenue

Operating Cost
Operating Gross Profit
２． Investment operation
Proceeds of sales of securities (A)Fund interests income etc.
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(14.8%)(14.8%)(9.2%)
13.2%(88.0%)-(3.9%)
21.6%

Total

Operating Gross Profit

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

196
59
136

3.7%
(87.8%)-- 26 -

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.
- 27 -

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- 28 -

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- 29 -

5. Appendix - Company data (as of June 30, 2019)
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)

Employees

41 (Consolidated) /22 (Non-consolidated)

Main businessPrivate equity investment / Project oriented investment

Directors

Chairman of the Board :Yoshiaki Kawamata [Outside/Independent]
President & CEO:Tetsuro Shimomura
In charge of New Energy 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]

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

Abbreviation; JAIC

- 30 -

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- 31 -