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.
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Japan Asia Investment Co., Ltd. (JAIC)Tokyo Stock Exchange Section 1 (Stock code: 8518)
Tetsuro Shimomura, President and CEOKenji Kishimoto, Executive Officer+81-3-3259-8518

March 23, 2020

Notice Concerning the Transfer of Six Projects Following the Execution of Investment forSolar Fund II which Invests in Mega Solar Projects in Operation
The Japan Asia Investment Co., Ltd. (hereinafter, “JAIC") Group (hereinafter, the “Group”)
announced today that it has decided to transfer six mega solar projects in operation (14.2 MW intotal), in which the Group invests, following the execution of investment of JAIC-Solar Fund, L.P., II(hereinafter, “Solar Fund II”) that the Group operates, to Solar Fund II (hereinafter, the“Transaction”.)

1．Outline of the Transaction（1）Outline of Solar Fund Ⅱ
NameJAIC-Solar Fund, L.P.,ⅡLocation
3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo, Japan
Fund management JAIC Capital Partners Co., Ltd.（JAIC’s 100％ subsidiary）
company
JAIC Capital Partners Co., Ltd. （ investment ratio:0.07％）
JAIC （investment ratio:0.07％）, other 2 companies（investment ratio:99.85％）

Fund investors andinvestmentratio（Note）

General Partner

Fund total（Note）
Investment target
Date ofestablishment

1,359 million yen
Mega solar projects in operation

Limited Partners

March 4, 2020

Note: After the increase of the total fund amount scheduled on March 27, 2020.

(2) List of mega solar projects that Solar Fund II plans to invest in
Name of power plant1

Higashioudaike solar power plant

2

Nakaoudaike solar power plant3

Iwate Ichinoseki solar park

Location
Sanuki City, Kagawa
Prefecture
Sanuki City, Kagawa
Prefecture
Hanaizumi Town,
Ichinoseki City, Iwate
Prefecture

1

Maximum
output(*)
2.4 MW
2.4 MW
2.4 MW

4

Mitakabeike solar power plant5

Nomaike solar power plant

6

Kumanishiki Ajioka Shizen Energy solar powerplant

Sanuki City, Kagawa
Prefecture
Sanuki City, Kagawa
Prefecture
Nishiki Town, Kuma
District, Kumamoto
Prefecture
Total

1.5 MW
2.4 MW
3.1 MW
14.2ＭＷ* Solar cell panel system capacity basis（3）Schedule
Date of execution
Settlement day

March 30, 2020（scheduled date）
March 30, 2020（scheduled date）

2．Reason for the Decision
The Group invests in six funds of an anonymous partnership of mega solar projects in operation(hereinafter, the “Partnership”) listed in 1 (2) above. The Group planned and solicited subscription
to the Solar Fund II, whose investment targets are the six funds of the Partnership, and obtained
good evaluation from the subscribers concerning the design, electricity sales performance, andmaintenance of the power plants owned by the funds. Therefore, the Group has decided to accept
their investment in Solar Fund II, resulting in the decision to transfer the six funds of the Partnershipfrom the Group to Solar Fund II.

3. Forecast
Any forward-looking statements in this document are based upon the information currently available
to JAIC at the time of writing and certain assumptions. Various factors could cause actual results todiffer materially from these result forecasts.
(1) Impact on consolidated financial statements
The Company is expected to book 1,350 million yen of operating revenue and 920 million yen ofprofit attributable to owners of parent relating to the Transaction on its consolidated statements ofincome for the fiscal year ending March 31, 2020. Furthermore, the Company is expected to book
520 million yen of operating revenue and 85 million yen of profit attributable to owners of parent
from electricity sales revenue until the Transaction for the six funds of the Partnership on theconsolidated statements of income for the fiscal year ending March 31, 2020.
Meanwhile, the six funds of the Partnership will no longer be consolidated by the Company due tothe Transaction. As a result, in the fiscal year ending March 31, 2021 and onward, only the profit
from electricity sales revenue that corresponds to the Group’s investment ratio in Solar Fund II(0.15% for the Group as a whole) will be booked under operating revenue. Therefore, operating
revenue and profit attributable to owners of parent are expected to decrease compared to the fiscal
year ending March 31, 2020. The following amounts are also expected to decrease from theCompany’s consolidated balance sheets as of March 31, 2020 due to the Transaction: 1) the total
amount of assets including property, plant and equipment by 4,370 million yen; and 2) the total
amount of liabilities including borrowings by 3,820 million yen.
(2) Impact on “result forecast consolidated under the Previous Accounting Standard”
The “result forecast consolidated under the Previous Accounting Standard” announced on February
14, 2020 has taken the Transaction into account and will not be revised following the decision ofthe Transaction.
24. “Result Forecast Consolidated Under the Previous Accounting Standard”
The private equity investment business conducted by the JAIC Group is significantly affected bychanging 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 in recent years.
Therefore JAIC doesn’t disclose the results forecast. For the convenience of investors andshareholders, however, JAIC discloses “result forecast consolidated under the Previous AccountingStandard” even though it doesn’t have enough rationality.
（Note）Previous Accounting Standard
As of Fiscal year ended March 31, 2007 the JAIC Group has adopted “Practical Solution on Applicationof Control Criteria and Influence Criteria to Investment Associations” (Accounting Standards Boardof 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 JAIC Group.
Nevertheless, to enable investors and shareholders to have an accurate understanding of the JAIC
Group’s business results and financial position, JAIC considers it essential also to disclose financial
statements, etc., prepared in accordance with the previous accounting standards. Therefore, forreference purposes, JAIC will continue to disclose financial statements, etc., in accordance with theprevious accounting standards.
In those financial statements etc., prepared in accordance with the previous accounting standards,
assets, liabilities, revenues and expenses for investment funds were reported based on the investment
portion by JAIC and its subsidiaries and by excluding the portion held by external investors. In
addition, company-type funds are excluded from the scope of consolidations in those financial
statements.

(End)3