Japan Asia Investment : Summary of Consolidated Financial Results for the 3rd Quarter Ended Dec. 31, 2022

Japan Asia Investment Co., Ltd.

Fund Consolidation

This document has been translated from a part of the 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 Third Quarter Ended December 31, 2022

[Japanese Standards]

(Summary of Japanese announcement)

		February 14, 2023
Company name:	Japan Asia Investment Co., Ltd.
Listed on:	Tokyo Stock Exchange, Standard Market (Stock code: 8518)	URL: https://www.jaic-vc.co.jp/
Head office:	Tokyo
Representative:	Tetsuro Shimomura, President and CEO
Contact:	Kenji Kishimoto, Executive Officer

Tel: [phone] (main)

Scheduled date for submission of quarterly report: February 14, 2023

Scheduled date for start of payment of dividends: -

The additional materials of the Financial Results: Yes

The briefing session of the Financial Results: None

(Throughout this report, fractional amounts have been rounded down to the nearest one million yen.)

1. Consolidated business results for the third quarter ended December 31, 2022 (April 1, 2022 to December 31, 2022)

(1) Consolidated results of operations (cumulative total)

(Percentages indicate year-on-year increase or decrease)

	Operating revenue	Operating income	Ordinary income	Profit attributable to
	owners of parent
	Millions of yen	% change	Millions of yen % change	Millions of yen % change	Millions of yen % change
For nine months ended	3,377	22.0	233	275.3	127	－	(103)	－
December 31, 2022
For nine months ended	2,769	(6.7)	62	－	(49)	－	(227)	－
December 31, 2021
(Note) Comprehensive Income
For nine months ended December 31, 2022: 1,003 millions of yen [521.2%]
For nine months ended December 31, 2021: 161 millions of yen [－%]
	Net income per share	Diluted net income
	per share
For nine months ended		Yen		Yen
	(5.82)		－
December 31.2022
For nine months ended		(12.83)		－
December 31, 2021
(2) Consolidated financial position
	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen		%		Yen
As of December 31,2022		19,393		9,614		40.4		443.08
As of March 31, 2022		20,231		9,443		38.4		438.69

(Reference) Total shareholders' equity As of December 31, 2022: 7,843 millions of yen/As of March 31, 2022: 7,766 millions of yen

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Japan Asia Investment Co., Ltd.

Fund Consolidation

2. Dividends

						Dividends per share
(Base date)		End of first quarter	End of second quarter		End of third quarter	End of year	Year
Year ended March 31,		Yen	Yen		Yen	Yen	Yen
	－	0.00			－	0.00		0.00
2022
Year ending March 31,		－	0.00			－
2023
Year ending March 31,							0.00		0.00
2023(forecast)

(Note) Revision of dividends forecast during the current quarterly period: None

3. Outlook for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

The overall private equity investment business conducted by the Group (including investment partnerships) is 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. Therefore, we do not disclose the results forecast. For the convenience of investors and shareholders, however, we disclose "result forecast consolidated under the Previous Accounting Standard" even though it doesn't have enough rationality. For details, please refer to "2. Outlook for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)" on page 18 in this report.

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 (4) Cautionary Statements with Respect to Forward-looking Statements such as Consolidated Earnings Forecast under the Previous Accounting Standard" on page 20 in this report, "3. Business Performance and Financial Condition (4) Result forecast consolidated under the Previous Accounting Standard" on page 26 in "Consolidated Financial Results for the Year Ended March 31, 2022 [Japanese Standards]" disclosed on May 13, 2022 and "Differences between the "Result Forecast Consolidated under the Previous Accounting Standard" and the Results for First Half of Fiscal Year ending March 2023 and Notice of Revision on "Result Forecast Consolidated under the Previous Accounting Standard" for Full Year of Fiscal Year ending March 2023" disclosed on November 14, 2022.

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: -)]

1. Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
2. Changes in accounting principles, accounting estimates and correction of prior period errors
3. 1. Changes in accounting principles due to revisions to accounting standards: None
   2. Changes other than shown in (i) above: None
   3. Changes in accounting estimates: None
   4. Correction of prior period errors: None
4. No. of shares issued and outstanding (common stock)

(i) Shares issued and outstanding at	Nine months ended	17,884,392	Year ended March	17,884,392
the end of each period (including
December 31,2022:	shares	31, 2022:	shares
treasury stock)
(ii) Shares of treasury stock at the	Nine months ended	181,009	Year ended March	181,009
end of each period	December 31,2022:	shares	31, 2022:	shares
(ii) Average number of shares	Nine months ended	17,703,383	Nine months ended	17,703,383
during the period (cumulative
December 31,2022:	shares	December 31,2021:	shares
quarterly consolidated period)

*The above quarterly financial results are not subject to a quarterly review required under the Financial Instruments and Exchange Act.

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Japan Asia Investment Co., Ltd.

Fund Consolidation

*Cautionary Statements with Respect to Forward-looking Statements and Other Notes

The additional materials of the financial results for the third quarter ended December 31, 2022 will be released on our website on February 14, 2023.

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 the Group 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 (4) Cautionary Statements with Respect to Forward-looking Statements such as Consolidated Earnings Forecast under the Previous Accounting Standard" on page 20 in this report, "3. Business Performance and Financial Condition (4) Result forecast consolidated under the Previous Accounting Standard" on page 26 in "Consolidated Financial Results for the Year Ended March 31, 2022 [Japanese Standards]" disclosed on May 13, 2022 and "Differences between the "Result Forecast Consolidated under the Previous Accounting Standard" and the Results for First Half of Fiscal Year ending March 2023 and Notice of Revision on "Result Forecast Consolidated under the Previous Accounting Standard" for Full Year of Fiscal Year ending March 2023" disclosed on November 14, 2022.

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															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 nine months ended			For nine months ended		For the year ended
						December 31, 2021			December 31, 2022		March 31, 2022
						(from April 1, 2021			(from April 1, 2022		(from April 1, 2021
						to December 31, 2021)		to December 31, 2022)		to March 31, 2022)
	Total operating revenue						2,769					3,377			3,204
	Management fees						89					87			117
	Proceeds of	sales of	operational				1,661					1,996			1,732
	investment securities
	Fund interests	income	and Income				1,000					1,278			1,330
	gains etc.
	Other operating revenue						19					15			24
	Total operating cost						1,639					2,053			1,971
	Cost of securities sold						853					1,024			887
	Investment write-offs & Provision
	for allowance for possible					167					463			160
	investment losses
	Fund interests losses etc.					611					555			914
	Other operating cost						7					9			10
	Operating gross profit						1,130					1,324			1,232
(2) Investment income
																		(Millions of yen)
				For nine months ended			For nine months ended		For the year ended
				December 31, 2021					December 31, 2022			March 31, 2022
				(from April 1, 2021					(from April 1, 2022			(from April 1, 2021
				to December 31, 2021)			to December 31, 2022)		to March 31, 2022)
				Project	Private		total		Project	Private		total		Project	Private		total
				equity			equity			equity
			investment			investment		investment
			investment				investment			investment
	Proceeds of sales of
	operational investment		669	991		1,661			149	1,847		1,996	669	1,062		1,732
	securities (A)
	Cost of securities sold		521	331		853			90	934		1,024	521	365		887
	(B)
	Realized capital gains		147	660		807			59	912		972	147	697		845
	(A)-(B)
	Investment write-offs
	& Provision for			―	167		167			―	463		463		―	160		160
	allowance for possible
	investment losses (C)
	Investment income		147	492		640			59	449		508	147	537		685
	(A)-(B)-(C)

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Japan Asia Investment Co., Ltd.

Fund Consolidation

(3) Cash flows

(Millions of yen)

For nine months ended

For nine months ended

For the year ended

December 31, 2021

December 31, 2022

March 31, 2022

(from April 1, 2021

(from April 1, 2022

(from April 1, 2021

to December 31, 2021)

to December 31, 2022)

to March 31, 2022)

Cash flow from operating activities

ሺ542)

517

(145)

Cash flow from investing activities

117

(2)

212

Cash flow from financing activities

ሺ1,007)

(806)

(1,007)

Cash and cash equivalents at the end

1,891

2,134

2,397

of period

(4) Breakdown of total assets

(Millions of yen)

As of December 31, 2021

As of December 31, 2022

As of March 31, 2022

Amount

(B)/(A)

Amount

(B)/(A)

Amount

(B)/(A)

(%)

(%)

(%)

Total assets

23,830

－

19,393

－

20,231

－

Cash and deposits

4,479

－

4,044

－

5,666

－

Property, plant and equipment

8,807

－

4,974

－

4,148

－

Operational Investment

9,099

－

9,732

－

9,538

－

Securities (A)

Allowance for Possible

ሺ1,475)

16.2

(1,743)

17.9

(1,492)

15.6

Investment Loss (B)

(5) Breakdown of Loans payable and bonds

(Millions

of yen）

As of December 31, 2021

As of December 31, 2022

As of March 31, 2022

Total of loans payable and bonds

13,910

9,048

9,521

Loans payable;

5,943

5,137

5,943

Non-consolidated base

Loans payable by project finance

and bonds;

7,967

3,911

3,578

Consolidated projects

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