Japan Asia Investment Co., Ltd.
Fund Consolidation

This document has been translated from Japanese original for reference purposes only. In
the event of any discrepancy between this translated document and the Japanese original,
the original shall prevail. JAIC assumes no responsibility for this translation or for direct,
indirect or any other forms of damages arising from the translation.

Consolidated Financial Results
for the Second Quarter Ended September 30, 2020
[Japanese Standards](Summary of Japanese announcement)
November 13, 2020
Company name:

Japan Asia Investment Co., Ltd.

Listed on:First Section of the Tokyo Stock Exchange (Stock code: 8518)

Head office:Tokyo

Representative:

Tetsuro Shimomura, President and CEO

Contact:

Kenji Kishimoto, Executive Officer

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

Tel: +81-3-3221-8518 (main)
Scheduled date for submission of quarterly report: November 13, 2020
Scheduled date for start of payment of dividends: —The additional materials of the Financial Results: Yes
The briefing session of the Financial Results: None *We will distribute a video explaining financial results in Japanese on our
website.

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the second quarter ended September 30, 2020 (April 1, 2020 to September 30, 2020)(1) Consolidated results of operations (cumulative total)(Percentages indicate year-on-year increase or decrease)
Operating revenue

Operating income

Ordinary income

Millions of yen % change

Millions of yen % change

Millions of yen % change

Profit attributable toowners of parent
Millions of yen % change

For six months ended
September 30, 2020

1,257

(7.1)

(179)

－

(300)

－

(342)

－

For six months ended
September 30, 2019

1,353

13.8

(216)

－

(364)

－

(462)

－

(Note) Comprehensive Income
For six months ended September 30, 2020: (459) millions of yen (－%)
For six months ended September 30, 2019: (28) millions of yen (－%)

Yen

Diluted net income
per shareYen(19.36)－(26.11)－

Net income per share
For six months ended
September 30, 2020
For six months ended
September 30, 2019(2) Consolidated financial position
Equity ratio

Net assets per share

Total assets

Net assets

Millions of yen

Millions of yen%

Yen

As of September 30, 2020

28,250

8,090

23.8

379.66

As of March 31, 2020

28,548

8,716

25.3

407.791

Japan Asia Investment Co., Ltd.
Fund Consolidation(Reference) Total shareholders' equity As of September 30, 2020: 6,721 millions of yen As of March 31, 2020: 7,219 millions ofyen
2. Dividends(Base date)Year ended March 31,
2020
Year ending March 31,
2021
Year ending March 31,
2021 (forecast)End of first quarter
Yen

End of second quarter
Yen

－

0.00

－

0.00

Dividends per share
End of third quarter
Yen

0.00

End of year
Yen

Year
Yen

－

0.00

0.00

－

0.00

0.00

(Note) Revision of dividends forecast during the current quarterly period: None
3. Outlook for the fiscal year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
The overall private equity investment business conducted by the Group (including investment partnerships) is significantly affectedby changing factors such as stock markets, given the characteristics of the business. In addition, it has been difficult to forecast
results reasonably in the rapidly changing environment. Therefore we do not disclose the results forecast. For the convenience ofinvestors and shareholders, however, we disclose “result forecast consolidated under the Previous Accounting Standard” eventhough it doesn’t have enough rationality.
The “result forecast consolidated under the Previous Accounting Standard” 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.
For details, please refer to “2. Outlook for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)” on page 17 inthis report.
4. Other matters(1) Changes among significant subsidiaries (Changes among specific subsidiaries resulting in changes in the scope of
consolidation): None
[New - company (company name: -)Excluded - company (company name: -)](2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting principles, accounting estimates and correction of prior period errors(i) Changes in accounting principles due to revisions to accounting standards: None(ii) Changes other than shown in (i) above: None(iii) Changes in accounting estimates: None(iv) Correction of prior period errors: None
(4) No. of shares issued and outstanding (common stock)(i) Shares issued and outstanding at Six months ended30,
the end of each period (including September
2020:
treasury stock)(ii) Shares of treasury stock at theSix months ended
end of each period
September30,
2020:
Six months ended(ii) Average number of shares
September
30,
during the period (cumulative
2020:
quarterly consolidated period)

17,884,392
shares181,009
shares17,703,383
sharesYear ended March
31, 2020:
Year ended
31, 2020:

March

Six months ended
September
30,
2019:

17,884,392
shares181,009
shares17,703,383
shares*The above quarterly financial results are not subject to a quarterly review required under the Financial Instruments andExchange Act.
*Cautionary Statements with Respect to Forward-looking Statements and Other Notes
The additional materials of the financial results for the second quarter ended September 30, 2020 will be released on our
website by November 20, 2020.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements inthis document are based upon the information currently available to the Group at the time of writing and certain2

Japan Asia Investment Co., Ltd.
Fund Consolidation

assumptions. The achievement is not promised. Various factors could cause actual results to differ materially from theseresult forecasts. For details, please refer to “2. Outlook for the fiscal year ending March 31, 2021 (April 1, 2020 to March
31, 2021)” on page 17 in this report.

3Japan Asia Investment Co., Ltd.
Fund Consolidation

1. Business Performance and Financial Condition(1) Breakdown of operating revenue and operating cost
(Millions of yen)
For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)
Total operating revenue (A)For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)

1,353

1,257

3,950

68

58

134

611

253

2,768

664

932

1,028

Other operating revenue

9

13

19

Total operating cost (C)

917

724

1,956

Cost of securities sold (D)

397

94

1,051

200

(57)

283

318

683

617

2

3

5

Operating gross profit (A) - (C)

435

533

1,993

Realized capital gains (B) - (D)

214

159

1,717

Investment income

14

216

1,434

Management fees
Proceeds of sales of operational
investment securities (B)Fund interests income and Income
gains etc.

Investment write-offs & Provision
for allowance for possible
investment losses (E)Fund interests losses etc.
Other operating cost(B) - (D) – (E)(2) Cash flows

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)(Millions of yen)
For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)

Cash flow from operating activities

(870)

326

124

Cash flow from investing activities

56

(13)

147

Cash flow from financing activities(1,095)(697)(1,617)

2,161

2,326

2,723

Cash and cash equivalents at the endof period

4Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Breakdown of total assets(Millions of yen)
As of September 30, 2019
Amount(B)/(A)(%)

As of September 30,
2020
Amount(B)/(A)(%)

As of March 31, 2020
Amount(B)/(A)(%)

Total assets

29,372－

28,250－28,548－Cash and deposits

5,121

－

5,103

－

4,520

－

Property, plant and equipment

13,693－

10,959－12,119－Operational Investment Securities
(A)

9,635

－

9,789

－

9,848

－

Allowance for Possible
Investment Loss (B)(1,554)16.1(1,502)

15.3(1,574)

16.0(4) Breakdown of Loans payable(Millions of yen）
As of September 30, 2019

As of September 30, 2020

As of March 31, 2020

Total of loans payable and bonds

20,05819,185

17,334Loans payable;
Non-consolidated base

8,689

7,469

8,166

Loans payable by Project financeand bonds ;Consolidated projects

11,36911,7159,167

5

Japan Asia Investment Co., Ltd.
Fund Consolidation

2. Business Position(1) Investment activities (JAIC+Funds)i) Breakdown of new investment
For six months ended
For six months ended
September 30, 2019
September 30, 2020
(from April 1, 2019(from April 1, 2020
to September 30, 2019)
to September 30, 2020)
AmountNumber ofAmountNumber ofcompanies (Millions of companies or (Millions ofprojectsyen)or projects
yen)

For the year ended
March 31, 2020
(from April 1, 2019 toMarch 31, 2020)
Number ofAmountcompanies (Millions ofor projects
yen)

Area
Japan

12

1,745

7

533

22

3,374

China, Hong Kong, Taiwan etc.

－

－

－

－

－

－

6

920

5

374

10

2,150

6

824

2

158

12

1,224

2

112

1

149

2

152

1

77

1

8

2

112

1

260

－

－

2

379

1

25

－

－

3

117

1

350

－

－

3

461

12

1,745

7

533

22

3,374

Industry
Project Oriented Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
OthersTotalii) Balance of investment
As of September 30, 2019
Number ofcompanies
or projects

As of September 30, 2020

As of March 31, 2020

AmountAmountNumber of(Millions of companies or (Millions ofprojectsyen)yen)

Number of Amountcompanies (Millions ofor projects
yen)

Area
Japan
China, Hong Kong, Taiwan etc.

84

10,044

82

9,886

84

10,512

49

4,633

44

4,489

46

4,589

30

6,418

31

6,000

32

6,696

103

8,260

95

8,375

98

8,405

27

3,194

24

3,273

24

3,123

44

1,985

40

1,763

40

1,854

7

659

6

748

7

748

Industry
Project Oriented Investment
Private Equity Investment
Sub total
QOL(Quality of Life)
IT/Internet
Machinery/ Precision machine
Service
Others

14

911

13

990

15

1,070

11

1,508

12

1,600

12

1,608

133
14,678126
14,376
Total
15,101130
Note:
1. QOL (Quality of Life); Biotechnology, Medical Service, Welfare Service, Medical Device, Drug Medicine, etc.
2. The aggregation method has been changed from the 3rd quarter of FY Mar 2020 to better reflect JAIC’s investment
performance. In the past, investments in funds managed by third parties other than JAIC, for which the JAIC Groupis not involved in fund management, had not been included. However, from the 3rd quarter of FY Mar 2020,
investments in such funds for which the investment targets are specified etc. have been included. As a result, theamount of new investments in project oriented investment for FY Mar 2020 and balance of project oriented
investments as of March 31, 2020 increased by 823 million yen respectively compared with the amount aggregatedby using the previous method. The amount of new investments in project oriented investment for six months ended
September 30, 2020 and the balance of project oriented investments as of September 30, 2020 also increased by 68
million yen and 868 million yen respectively compared with the amount aggregated by using the previous method.
There are also effect of 300 million yen on the figures of the 2nd quarter of FY 2020 from this change in theaggregation method.

6

Japan Asia Investment Co., Ltd.
Fund Consolidation(2)JAIC-Backed IPOs (JAIC+Funds)i)Number of IPOs

Japan
Overseas
Total

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)2 companies－
2 companies

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)－－－

For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)
3 companies
1 company
4 companiesii) First price multiple
For six months ended
For six months ended
For the year ended
September 30, 2019
September 30, 2020
March 31, 2020
(from April 1, 2019(from April 1, 2020
(from April 1, 2019
to September 30, 2019)
to September 30, 2020)
to March 31, 2020)
Japan
8.8 times－
5.2 times
Overseas－－
8.6 times
Note: First price multiple = Gross market capitalization at first price/Total our acquisition cost. However, the calculationof the first price multiple does not include the number of companies whose listed shares the group acquired as aresult of equity swaps.
iii) JAIC-Backed IPOs
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Company
Date ofMarketBusiness
Name
IPO
Research, development, manufactureand sales of pharmaceuticals andmedical devices that promote
regeneration of damaged tissues by
StemRIM
9-Aug-19
TSE Mothers
activating and utilizing patient’s own
stem cells in the body, and genetherapy products for intractablediseases'"Secure Cloud Systems Business"
which provides an enterprise's Core
Systems as cloud computing
PBsystems, Inc.
12-Sep-19
FSE Q-Board
systems, and "Emotional Systems
Business" which manufactures andsells VR-theater "4D king"
NASDAQ
Operator of "房多多", china's largest
Fangdd Network Group Ltd. 1-Nov-19
Globalonline real estate marketplace
Consulting for Judo therapy
establishments，Insurance agency，Ligua Inc.
13-Mar-20
TSE Mothers
Financial adviser and Independent
contractor management
For six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)
No applicable items

7

Headquarters

Japan

Japan

China
Japan

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Management of Investment Funds (Funds for which JAIC and its Group are responsible formanagement and provision of essential information)i) Balance of funds under management
As of September 30,
2019

As of September 30,
2020

Total commitment amount in investment
15,948funds (Millions of yen)
(5,131)(Total commitment amount of JAIC group)
No. of funds
10
Note: Funds being wound up after their maturity are not included in the data above.

As of March 31, 2020

16,556(4,928)17,390(5,163)1111ii) Funds newly established or those commitment amount increased
For six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen )No. of funds－－

amountincreased－－

For six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen)
No. of funds

151
1

amountincreased－－

For the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Newly established
Total commitment amount in investment
funds (Millions of yen)
No. of funds

Commitment amount increased
Total commitment(Millions of yen)
No. of funds

1,359
1

amountincreased－－iii) Details of funds newly established or those commitment amount increased
For six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)No applicable items
For six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)
Date of
Total commitment amount
Name of fundMain investment targets
establishment(Millions of yen)
SMEs in Hokkaido those intend to grow the
Hokkaido SME Global
business through overseas expansion and
April 2020
151
Fund, L.P.
incorporation of demand related to inboundtourism
For the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Date of
Total commitment amount
Name of fundMain investment targets
establishment(Millions of yen)
JAIC-Solar Fund, L.P.,
March 2020
1,359
Mega solar projects in operation
Ⅱ

8

Japan Asia Investment Co., Ltd.
Fund Consolidationiv) Funds to reach maturity within six years from the fiscal year-end
For the year ending
March 31, 2021
(from April 1, 2020
to March 31, 2021)
Total commitment amount in investment
5,920
funds (Millions of yen)
No. of funds

4

For the year ending
March 31, 2022
(from April 1, 2021
to March 31, 2022)

For the year ending
March 31, 2023
(from April 1, 2022
to March 31, 2023)

4,126

－

3

－

Notes to tables i) to ⅳ) above:
1. The amounts stated for funds denominated in foreign currencies are calculated on the basis of the exchange rate
prevailing on the final day of the fiscal year-end. Therefore, changes in assets under management include the amountaffected by exchange rates.
2. The total amount of fund is listed as the amount of commitment base.

9Japan Asia Investment Co., Ltd.
Fund Consolidation
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits

4,520

5,103

Operational investment securities

9,848

9,789

Allowance for investment losses(1,574)(1,502)

Operating loans

204

204

Other

767

1,083

13,767

14,679Buildings and structures

29

211

Accumulated depreciation

(17)

(4)

Buildings and structures, net

12

206

Machinery and equipment

8,826

11,336

Accumulated depreciation

(373)

(700)

Machinery and equipment, net

Total current assets
Non-current assets
Property, plant and equipment

8,452

10,636

Vehicles, tools, furniture and fixtures

71

54

Accumulated depreciation

(63)

(35)

7

19

Vehicles, tools, furniture and fixtures, net
Land

87

91

Construction in progress

3,559

5

Total property, plant and equipment

12,11910,959

1,491

1,400

228

248

1,719

1,648

Investment securities

386

376

Distressed receivables

64

56

Other

509

545

Allowance for doubtful accounts

(18)

(15)

Total investments and other assets

941

963

Intangible assets
Power production facilities concessions
Other
Total intangible assets
Investments and other assets

Total non-current assets

14,78013,571

Total assets

28,54828,25010Japan Asia Investment Co., Ltd.
Fund Consolidation(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Short-term borrowings
Current portion of bonds payable
Accrued expenses

1,403

2,057

540

6

1,756

178

Income taxes payable

8064Provision for bonuses

64

38

Other

31

30

3,876

2,376

－

188

Long-term borrowings

15,39016,932

Deferred tax liabilities

10

6

Total current liabilities
Non-current liabilities
Bonds payable

Retirement benefit liability

123

133

Asset retirement obligations

431

522

Total non-current liabilities

15,955

17,783

Total liabilities

19,832

20,159

Share capital

5,426

5,426

Capital surplus

3,408

3,408

Net assets
Shareholders' equity

Retained earnings(1,608)(1,951)

Treasury shares

(353)

(353)

Total shareholders' equity

6,871

6,529

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

194

65

Foreign currency translation adjustment

152

126

Total accumulated other comprehensive income

347

191

Share acquisition rights

25

26

Non-controlling interests

1,472

1,343

Total net assets

8,716

8,090

Total liabilities and net assets

28,54828,25011Japan Asia Investment Co., Ltd.
Fund Consolidation(2) Consolidated Statements of Income(Millions of yen)
For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)
Operating revenue

1,353

1,257

Operating costs

917

724

Operating gross profit

435

533

Selling, general and administrative expenses

652

712

Operating loss

(216)

(179)

Interest income

3

4

Dividend income

31

Foreign exchange gains

2

13

Gain on investments in investment partnerships

6

26

Miscellaneous income

22

Total non-operating income

18

48

Interest expenses

164

169

Miscellaneous loss

1－

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary loss

165

169

(364)

(300)

Extraordinary income
Gain on sales of non-current assets

53Gain on redemption of investment securities－

8

Gain on liquidation of subsidiaries and associates

3－

Gain on sales of shares of subsidiaries and associates

4

－

Other

0

1

Total extraordinary income

1313Extraordinary losses
Loss on sales and retirement of non-current assets－

2

Loss on redemption of investment securities－

0

Total extraordinary losses
Loss before income taxes

－

3

(350)

(290)

Income taxes - current

11

9

Total income taxes

11

9

(362)

(299)

Loss
Profit attributable to non-controlling interests
Loss attributable to owners of parent

12

99

43

(462)

(342)

Japan Asia Investment Co., Ltd.
Fund Consolidation(3) Consolidated Statements of Comprehensive Income
For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)
Loss

(362)

(Millions of yen)
For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)(299)

Other comprehensive income
Valuation difference on available-for-sale securities

420

11

Foreign currency translation adjustment

(62)

(31)

Share of other comprehensive income of entities
accounted for using equity method

(23)

(140)

Total other comprehensive income

334

(160)

(28)

(459)

Comprehensive income attributable to owners ofparent

(315)

(498)

Comprehensive income attributable to non-controllinginterests

288

38

Comprehensive income
Comprehensive income attributable to13

Japan Asia Investment Co., Ltd.
Fund Consolidation(4) Consolidated Statements of Cash Flows(Millions of yen)
For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)
Cash flows from operating activities
Loss before income taxes

(350)

(290)

Depreciation

7

19

Increase (decrease) in allowance for investment loss

9

(140)

Increase (decrease) in allowance for doubtful accounts

(6)

(2)

Increase (decrease) in provision for bonuses

(16)

(25)

Increase (decrease) in retirement benefit liability

69Interest and dividend income

(6)

(4)

Interest expenses

79

67

Loss (gain) on investments in investment partnerships

(6)

(26)

Loss on devaluation of operational investment
securities

49－

Decrease (increase) in investment securities for sale

(616)

132

Decrease (increase) in operating loans receivable

－

(119)

Decrease (increase) in distressed receivables

12

7

Payment for purchase of investment funds

(678)

(400)

Dividends from investment funds

847

1,089

Increase (decrease) in investment funds of noncontrolling interest

(119)

(36)

Other, net

08

Subtotal

(788)

286

Interest and dividends received

64Interest paid

(110)

(93)

Income taxes paid

(12)

(13)

Income taxes refund

34

142

(870)

326

Purchase of property, plant and equipment

(0)

(48)

Proceeds from sales of property, plant and equipment

14

10

Purchase of intangible assets

(6)

(25)

Proceeds from sales of investment securities－

4

Proceeds from redemption of investment securities

47

38

Other, net

07

Net cash provided by (used in) investing activities

56

(13)

(1,095)

(697)

(0)

－

(1,095)

(697)

(11)

(12)

(1,920)(396)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Repayments of long-term borrowings
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

4,082

2,723

Cash and cash equivalents at end of period

2,161

2,326

14

Japan Asia Investment Co., Ltd.
Fund Consolidation(5) Notes on Quarterly Consolidated Financial Statements(Notice Concerning Notes on Matters Regarding the Assumption of Going Concern)
No applicable items(Notice Concerning Notes on Significant Changes in Shareholder’s Equity)
No applicable items(Additional Information)
COVID-19 has a widespread impact on the economy and business activities. However, the impact on the Grouphas been limited since the end of the previous consolidated fiscal year.
We make accounting estimates of investment valuations based on the assumption that the impact of thisinfectious disease on the economy and corporate activities will be new normal.

15

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

Information for Reference Purposes:
Consolidated Financial Results
for the Second Quarter Ended September 30, 2020
November 13, 2020

Consolidated Financial Statements, etc., under the Previous Accounting Standards
for the Second Quarter Ended September 30, 2020

(As of September 30, 2020)

Disclosure of consolidated financial statements, etc., under the Previous accounting standards
As of Fiscal year ended March 31, 2007 the JAIC Group has adopted “Practical Solution on Application of Control Criteria and Influence
Criteria to Investment Associations” (Accounting Standards Board of Japan Practical Issues Task Force No. 20 issued on September 8, 2006),
and consolidated financial statements, etc., are being prepared with the inclusion in the consolidation of some of the operational investment
funds managed by the Group.
Nevertheless, to enable investors and shareholders to have an accurate understanding of the JAIC Group’s business results and financial position,
we consider it essential also to disclose financial statements, etc., prepared in accordance with the previous accounting standards. Therefore,
for reference purposes, the Group will continue to disclose financial statements, etc., in accordance with the previous accounting standards.

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)
1. Consolidated business results for the Second quarter ended September 30, 2020 (April 1, 2020 to September 30, 2020)(1) Consolidated results of operations (cumulative total)(Percentages indicate year-on-year increase or decrease)
Operating revenue

Operating income

Ordinary income

Millions of yen % change

Millions of yen % change

Millions of yen % change

Profit attributable toowners of parent
Millions of yen % change

For six months ended
September 30, 2020
For six months ended
September 30, 2019

541

(21.7)

(316)

－

(335)

－

(336)

－

691

(3.5)

(421)

－

(483)

－

(481)

－

Yen

Diluted net income
per shareYen(18.99)－(27.22)－

Net income per share
For six months ended
September 30, 2020
For six months ended
September 30, 2019(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen%

Yen

As of September 30, 2020

14,580

6,759

46.2

380.30

As of March 31, 2020

15,800

7,248

45.7

408.06(Reference) Total shareholders' equity

Equity ratio

Net assets per share

As of September 30, 2020: 6,732 millions of yen, As of March 31, 2020: 7,223 millions of yen

16

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
2. Outlook for the fiscal year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
The private equity investment business conducted by the Group will 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 rapidly changing environment. For theconvenience of investors and shareholders, however, we disclose “result forecast consolidated under the Previous Accounting Standard” eventhough it doesn’t have enough rationality.
(Percentages indicate changes from the corresponding period of the previous fiscal year)
Operating revenue
For the year ending
March 31, 2021

Operating income

Ordinary income

Millions of yen% change

Millions of yen% change

Millions of yen% change

3,250

17.7

350

31.9

200

42.0

Profit attributable to ownersof parent
Millions of yen% change180(40.5)Net income per share
Yen
For the year ending
March 31, 2021

10.17

(Note) Revision of dividends forecast during the current quarterly period: No
Net income per share in above chart is calculated by the number of shares issued and outstanding excluding the number of shares of treasury
stock as at September 30, 2020.
The “result forecast consolidated under the Previous Accounting Standard” and any other forward-looking statements in this document 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.
For details, please refer to “3. Business Performance and Financial Condition (3) Cautionary Statements with Respect to Forward-looking
Statements such as Consolidated Earnings Forecast under the Previous Accounting Standard ” on page 18 in this report.

17

Japan Asia Investment Co., Ltd.
Previous Accounting Standard

3. Business Performance and Financial Condition(1) Breakdown of operating revenue and operating cost

(Millions of yen)

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)

For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For the year ended
March 31, 2020
(from April 1, 2019
to March 31, 2020)

Total operating revenue (A)

691

541

2,760

Management fees

107

82

199

406

232

2,349

155

198

172

Other operating revenue

20

26

40

Total operating cost (C)

582

313

1,401

Cost of securities sold (D)

356

85

965

160

ሺ62)

245

Fund interests losses etc.

61

285

184

Other operating cost

2

3

5

Operating gross profit (A) - (C)

108

227

1,359

Realized capital gains (B) - (D)

50

147

1,383

(110)

209

1,137

Proceeds of sales of operational
investment securities (B)Fund interests income and Income
gains etc.

Investment write-offs & Provision
for allowance for possible
investment losses (E)Investment income(B) - (D)-(E)(2) Asset, Liability and Net asset(Millions of yen)
As of September 30, 2019

As of September 30, 2020

As of March 31, 2020

Total asset

15,761

14,58015,800Total liabilities

9,231

7,821

8,551

8,689

7,469

8,166

6,530

6,759

7,248

6,507

6,732

7,223

Loans payable
Total net asset
Total shareholders’ equity(3) Cautionary Statements with Respect to Forward-looking Statements such as Consolidated Earnings Forecast under the Previous
Accounting Standard
There are no revisions on “result forecast consolidated under the Previous Accounting Standard” for the fiscal year ending March 31,
2021 (from April 1, 2020 to March 31, 2021) disclosed on May 15, 2020 in “Consolidated Financial Results for the Year Ended
March 31, 2020 [Japanese Standards] (Summary of Japanese announcement)”.
However, among the prerequisite conditions, breakdown of proceeds of sales of operational investment securities has been revised. At
the beginning of the current fiscal year, we expected to sell only our private equity investments and not our assets based on project
oriented investments. However, several investee companies have postponed their initial public offerings during the current fiscal year
due to weak stock markets and poor business performance. As a result, the gain on sale of private equity investments is expected to belower than initially projected. In addition, the gain on the sale of private equity investments in the second half is expected to becentered on the sale of large overseas unlisted shares.

18

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
On the other hand, many buyers have expressed their interests in purchasing mega solar projects for which electricity is being sold. We
recognize that this was a result of the recognition that the future revenue from sales of electricity has been determined in light of the growing
social need for clean energy and the increasing uncertainty caused by COVID-19. Therefore, JAIC changed its plan at the beginning of thecurrent fiscal year and decided to sell 7 mega solar projects amounting to 18.3 MW (including partial sales) in the second half of the current
fiscal year. JAIC will focus on selling these projects and realizing the planned sale of shares to achieve the full-year earnings forecast.
The “result forecast consolidated under the Previous Accounting Standard” 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.

19

Japan Asia Investment Co., Ltd.
Previous Accounting Standard
4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits

3,920

3,515

Operational investment securities

11,72810,807

Allowance for investment losses(1,092)(1,019)Operating loans

294

413

Other

219

127

15,07013,844

Buildings and structures

29

36

Accumulated depreciation

(17)

(2)

Buildings and structures, net

1234

Vehicles, tools, furniture and fixtures

70

53

Accumulated depreciation

(63)

(34)

Total current assets
Non-current assets
Property, plant and equipment

Vehicles, tools, furniture and fixtures, net

6

18

Land

9

0

Total property, plant and equipment

28

52

Other

213

233

Total intangible assets

213

233

386

376

Intangible assets

Investments and other assets
Investment securities
Distressed receivables

64

56

Other

55

31

Allowance for doubtful accounts

(18)

(15)

Total investments and other assets

488

449

Total non-current assets
Total assets

20

730

736

15,80014,580Japan Asia Investment Co., Ltd.
Previous Accounting Standard(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Short-term borrowings

513

1,026

Accrued expenses

64

69

Income taxes payable

8064Provision for bonuses

64

38

Other

40

39

Total current liabilities

764

1,238

Long-term borrowings

7,653

6,442

Deferred tax liabilities

10

6

Non-current liabilities

Retirement benefit liability

123

133

Total non-current liabilities

7,787

6,583

Total liabilities

8,551

7,821

Share capital

5,426

5,426

Capital surplus

3,505

3,505

Retained earnings(1,703)(2,040)Net assets
Shareholders' equity

Treasury shares

(353)

(353)

Total shareholders' equity

6,874

6,538

353

204

Foreign currency translation adjustment

(3)

(10)

Total accumulated other comprehensive income

349

194

Share acquisition rights

25

26

Total net assets

7,248

6,759

Total liabilities and net assets

15,80014,580

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

21

Japan Asia Investment Co., Ltd.
Previous Accounting Standard(2) Consolidated Statements of Income(Millions of yen)
For six months ended
September 30, 2020
(from April 1, 2020
to September 30, 2020)

For six months ended
September 30, 2019(from April 1, 2019
to September 30, 2019)
Operating revenue

691

541

Operating cost

582

313

Operating gross profit

108

227

Selling, general and administrative expenses

530

544

Operating loss

(421)

(316)

Interest income

3

4

Dividend income

31

Foreign exchange gains

2

13

Gain on investments in investment partnerships

6

26

Miscellaneous income

22

Total non-operating income

18

48

Interest expenses

79

67

Miscellaneous loss

0－

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary loss

79

67

(483)

(335)

Extraordinary income
Gain on sales of non-current assets

53Gain on redemption of investment securities－

8

Gain on liquidation of subsidiaries and associates

3－

Gain on sales of shares of subsidiaries and associates

4

－

Other

0

－

Total extraordinary income

1212Extraordinary losses
Loss on sales and retirement of non-current assets－

2

Loss on redemption of investment securities－

0

Total extraordinary losses
Loss before income taxes

－

3

(470)

(326)

Income taxes - current

11

9

Total income taxes

11

9

Loss

(481)

(336)

Loss attributable to owners of parent

(481)

(336)

22