Growth Strategy of JAIC
Japan Asia Investment Co., Ltd. (JAIC)( TSE 8518 )June 25, 2015

The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to thecontinued accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties includingchanges 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.

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Contents

Overview ofNew
Organization

Our Vision

Medium- toLong-term
Goals

Measuresfor Fiscal
Year Ending
March 2016-2-

1. Overview of New Organization: Organization Chart

Shareholders’ Meeting
Board of Directors
Audit and Supervisory
Committee
Internal Audit
OfficeInvestment andBusiness
Planning Group

Investment
Group

New Energy
Investment
Group

Administration
Group-3-

1. Overview of New Organization: Directors and Executive Officers【Directors】
President & CEO Osamu Hosokubo
General management, Investment Group, Investment and Business PlanningGroup

Executive Managing Director Tetsuro Shimomura
New Energy Investment Group, Administration GroupDirector
Outside Director
Outside Director

Kazunori Omori
Hitoshi Yasukawa
Tadashi Nunami

Members of Audit and Supervisory Committee【Executive Officers】
Shigenori Takahashi, Investment and Business Planning Group
Seiichiro Shimura, Investment Group
Masafumi Hatta,
New Energy Investment Group-4-2. Our Vision
Improvefinancialperformance

Expandeconomicties with
Asian
countries

Reliable
Investment
Company

Resolvesocialproblems

Strengthen
corporate
governance

Vitalize
economy-5-3.Medium to Long-term Goals: 3-1 Primary Balance¾ Increase “Stable Income” (management fees + income gains).
¾ Increase Stable Income to fully cover selling, general andadministrative (SG&A) expenses within 5 years.
Stable Income vs. SG&A expenses-6-3.Medium to Long-term Goals:
3-2 Outstanding Balance of Fund Assets Managed by JAIC

¾ Actively promote creation of new funds for VC/PE.
¾ Also set up a fund investing in mega-solar power projects.
¾ Increase total fund assets further than current level within 5 years.
Growth of outstanding balance of total fund assets

New funds
Existing funds
43.9 billions of yen

FY Mar. 2015

FY Mar. 2020-7-3.Medium to Long-term Goals:
3-3 Sales of Electricity Generated by Mega-solar Power Projects¾ Mega-solar power projects which can sell electricity
reach a capacity of 100 MW within 3 years.
Required growth of project capacity to sell electricity in 3 years (on a module basis)-8-

3.Medium to Long-term Goals: 3-4 Loans Payable and Net Assets¾ Repay existing loans by maximizing sales value of our existing
investments.
¾ Increase net assets by accumulating profits.
Expected changes in loans payable and net assets-9-4.Measures for FY 2016: 4-1 Setting Up Funds in VC/PE categories¾ Promote creation of new funds both in and outside
Japan.
• Japan– Currently negotiating to set up a venture capitalfund jointly with a Japanese financial institution– Also considering setting up funds other thanventure capital to capture foreign investors’ strong
appetite to invest in Japan• China– Started marketing for new funds that will makeinvestments across China- 10 -4.Measures for FY 2016:4-2 Maximizing Sales Value of Invested Companies by Providing Support

Maximization of sales value
Growth in enterprise value of invested companies
Investedcompany

Investedcompany

Investedcompany

Support for speedy IPO
completion

Support for capital &business alliances

Support for businessexpansion in Asia

Investedcompany

Investedcompany

Investedcompany

Introduction to potential
customers

Support for further fundraising

Advice on capital policy- 11 -4.Measures for FY 2016:
4-2 Providing Support to Invested Companies Case Study 1～KOYO ELECTRIC CORPORATION～
9Investment since May 2014
9Operates energy creation, energy trade and energy saving businesses in Japan
9Interested in expanding into Chinese and South East Asian markets as part of its growthstrategy

9We arranged a tour to Shanghai and Tianjin to observe the situation of Chinese
ESCO business for the founder.
9The Company has communicated with other invested companies in our portfolio (a Japaneseowned company in Shanghai and a local company in Shenyang).
9We also plan to provide support in other areas, including retail sales of electricity and energy
saving business in Japan- 12 -

4.Measures for FY 2016:
4-2 Providing Support to Invested Companies Case Study 2～Plus One Marketing Ltd.～
9Investment since September 2014
9An emerging venture company that comprehensively offers planning, development
and sales of SIM-unlocked devices, as well as sales of SIM cards and applications

9We introduced a financing advisory company, and the Company
successfully executed a loan agreement with a major bank.
9Additional funding was made available by other banks through our referral
9Alliance with one of the major volume retailers of home appliances
9JAIC will continuously support the Company to obtain a leading position in the fast
growing market.

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4.Measures for FY 2016:
4-3 Gain on Sale of Investments & Business Performance in China
Beijing (5)management company of CITIC
Guodian Fund
・CITIC Trust Co.
・China Guodian Corporationgroup company
Suzhou (6)・management company of
Suzhou Fund・ management company of
Wuzhong Fund・Suzhou Venture Group・Wuzhong Municipal
Government
Shanghai (3)Japan Asia Investment (China)
Co., Ltd.
Cyber Agent Ventures

Tianjin (2)management company of
Tianjin Fund
Tianjin Binhai New Area
Tianjin Eco-City( ): The number of staff of JAIC
officeBlue font: Name of JAIC office
Red font: Major investment
partners

Shenyang (6)Management company ofShenyang Fund
Shenyang Hunnan New
District Municipal
Government
Investment Balance in Greater
China as of Mar. 2015

61 companies
8.1 billon yen
Hong Kong (2)JAIC International (Hong Kong) Co., Ltd.
- 14 -4. Measures for FY 2016: 4-3 Gain on Sale of Investments & Business
Performance in China - Market Environment¾ Stock markets is very fluctuated. Raised to 2.5 times and thensharply dropped 30%, still 1.5 times comparing to a year ago¾ JPY vs. RMB: JPY at a record low level¾ Growing number of M&A deals by Chinese companies bothwithin China and cross-border¾ Optimal environment to liquidate investments
trend of Shanghai A stock for 1year
2.5times 2.5 times

trend of RMB・JPY
exchange rate for 5years
40%UP

1.5times- 15 -4.Measures for FY 2016: 4-4 Focus of Our Investment¾ Regional scope of our investment: Japan and China¾ A key element in differentiation: support for business expansion in Japanand Asia

Medical, Nursing,
Bio & Healthcare

Environment & EnergyrelatedSectorFocusInternet-related

New Manufacturing
Technologies & NewServices- 16 -4.Measures for FY 2016: 4-4 Focus of Our Investment
New Investment Case 1～Megakaryon Corporation～
Location： Kyoto, Japan
Founded： Sep. 2011
CEO： CEO, President, and Founder Genjiro Miwa
Main Shareholders： Innovation Network Corporation of Japan,management team, VC etc.
9R&D of platelet concentrate (PC) of human iPS origin
9 There are concerns over PC supply shortage in the existing
market given 100% reliance on blood donation
9 The existing products last only 4 days after production. Using the Company’stechnology, iPS cells can be stored frozen and PC can be replicated endlessly.
9 Simultaneous clinical development in Japan and the U.S., aiming forinternational commercialization of the technology developed in Japan from theinitial stage business development.

- 17 -4.Measures for FY 2016: 4-4 Focus of Our Investment
New Investment Case 2～Shenyang Quan Hui International Geriatric Rehabilitation Ltd.～Location: Hunnan New District, Shenyang, China
Company foundation: May 2004
(facility construction in 2011)CEO: Wang Lijun
Shareholders:Hong Kong Quan Hui International Ltd., JAIC Shenyang Fund,Sanga Holdings Co., Ltd. (a Japanese nursing care provider)
9 A Japan-China joint venture company operating nursing homes and providing
nursing and rehabilitation care services in suburbs of Shenyang City in alarge-scale facility with a capacity of about 1,000 beds.
9 Despite the likely aging of population in the near future, China lacks facilities, humanresources and expertise in elderly care.
9 The alliance resulted from JAIC’s involvement, linking the Chinese business operator
and the Japanese nursing care provider and actively participating in the discussions foralliance.

- 18 -4.Measures for FY 2016:
4-5 Further Promotion of Investments in New Energy Projects
Projects that have started
electricity sales

Shizuoka,Izunokuni
13.5MW

Projects under construction
Projects under planningMie, Kameyama
1.3MW

Kumamoto,
Kuma-gun
2.3MW

Iwate, Ichinoseki
Kazawa 10.8MW
Fujisawa 2.3MW

Mie, Matsuzaka
1.9MW

Miyagi,
Kesennuma
1.0MW

Kochi, Toyo-cho
2.0MWNara, Yoshino
29.0MW

Fukushima,
Iwaki
2.2MW

- 19 -4.Measures for FY 2016: 4-5 Further Promotion of Investments inNew Energy Projects - Case Study 1～Project Kochi～••••••Location:Toyo-cho, Aki-gun, Kochi prefecture
Project size: 2.0MW(capacity equivalent to annual
electricity consumption of 660households)
Project cost: 0.6 billion yen
Buyer of electricity: Shikoku ElectricPower Company, Inc.
Pricing: 40 yen/kw
Selling electricity since: Feb 2014

- 20 -4.Measures for FY 2016: 4-5 Further Promotion of Investments in
New Energy Projects - Case Study 2～Project Matsuzaka～
••

•••
•

Location: Iidaka-cho, Matsusaka-city,
Mie prefecture
Project size: 1.9MW(capacity equivalent to annual
electricity consumption of 540households)
Project cost： 0.6 billion yen
Buyer of electricity: Chubu ElectricPower Co., Inc.
Pricing: 36 yen/kw
Selling electricity since:April 2015 (partial)
Aug 2015 (in full)- 21 -

4.Measures for FY 2016: 4-5 Further Promotion of Investments inNew Energy Projects - Case Study 3～Project Fukushima～•Location: Ogawa-cho, Iwaki-city,Fukushima prefecture• Project size: 2.2MW(capacity equivalent to annual electricity
consumption of 700 households)• Project cost： ¥0.6 billion• Selling electricity since: Feb. 2015
• All rights associated with the project havebeen successfully transferred toMibugawa Electric Power Co., Inc. (a100% subsidiary of MarubeniCorporation).

- 22 -4.Measures for FY 2016:
4-5 Further Promotion of Investments in New Energy Projects

Mega-solar projects• Proven track record of project
promotion• Accumulation of successful projects

Foundationof an energy
fund

Geothermal, wind power andbiomass projects• Possible projects in the future- 23 -

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:
Tetsuro Shimomura, Executive Managing Director
Kenji Kishimoto, Administration Group
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 thecontinued accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties includingchanges 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.

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