Japan Asia Investment Company, Limited · TSE:8518
Japan Asia Investment — Q3 FY Mar. 2023 Earnings Presentation
39 slides from Japan Asia Investment's earnings presentation, Feb 14, 2023
Slide 1: Financial Results Overview for 3rd Quarter Ended December 31, 2022
Financial Results Overview rd for 3 Quarter Ended December 31, 2022 Japan Asia Investment Co., Ltd. (JAIC) (TSE 8518) Announcement date : February 14, 2023 Financial Results Overview for 3rd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 -1-
Slide 2: Contents
Contents 1 Summary P3 2 Results for the current quarter (year-on-year) P4 3 Business plan progress report P9 4 Result forecasts P17 5 Appendix P21 The figures in this document are based on consolidated financial statements prepared in accordance with the previous accounting standards. Financial Resu
Slide 3: 1. Summary
1. Summary Cumulative Results for the current quarter (year-on-year) • Operating revenue was ¥ ２，６８８ million (up, 53.4 %), quarterly net loss attributable to owners of parent was ¥ (80) million (up, ¥127 million) • Sales of unlisted shares progressed in Japan and overseas. Capital gains from 4 pro
Slide 4: 2. Results for the current quarter
2. Results for the current quarter Outline of results P5 Break down of operating revenue & operating cost P8 Financial Results Overview for 3rd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 -4-
Slide 5: Outline of results - I/S
2. Results for the current quarter - Outline of results - I/S FY 2022 FY 2023 (million yen) Change (3Q) (3Q) Operating revenue 1,752 2,688 53.4% Operating cost 1,030 1,774 72.2% Operating gross profit 722 914 26.6% SG&A expenses 838 864 3.1% Operating income (116) 49 - Ordinary income (116) 17 - Pro
Slide 6: Outline of results - B/S
2. Results for the current quarter - Outline of results - B/S fluctuation factors (million yen) FY 2022 FY 2023 (3Q) Change (billion yen) Total assets 14,972 13,517 (9.7%) repayments of loan (0.8), execution of investments & Cash and deposits 2,740 2,841 3.7% loans (1.7), expenses etc.(0.7), collect
Slide 7: Outline of results - C/F
2. Results for the current quarter - Outline of results - C/F (JPY million) FY 2022 (3Q) FY 2023 (3Q) Operating cash flow (542) 517 Investing cash flow 117 (2) Financing cash flow (1,007) (806) Change in net cash flow (1,409) (263) Cash & cash equivalents at end of period 1,891 2,134 Operating cas
Slide 8: Break down of operating revenue & operating cost
2. Results for the current quarter - Break down of operating revenue & operating cost Total Private equity investment Project oriented investment （JPY million） FY 2022 (3Q) FY 2023 (3Q) FY 2022 (3Q) FY 2023 (3Q) FY 2022 (3Q) FY 2023 (3Q) Operating revenue 1,752 2,688 1,008 1,936 744 752 Fund managem
Slide 9: 3. Business plan progress report
3. Business plan progress report Action plan P10 Private equity investment P11 Renewable energy P13 Distribution centre (logistics warehouse) P14 Healthcare (facility for the elderly) P15 New investment area P16 Financial Results Overview for 3rd Quarter of FY Mar. 2023 © Japan Asia Investment Co.,
Slide 10: Business plan progress report – Action plan
3. Business plan progress report – Action plan Action plan for 3 years Progress in second year (9 months since Apr. 2022) Liquidate existing assets and complete asset TMS Co., Ltd. achieved IPO in Nov. 2022. replacement. Established “Succession Investment Limited Private equity Originate thr
Slide 11: Private equity investment – TMS achieved IPO
3. Business plan progress report – Private equity investment TMS achieved IPO Company Name TMS Co., Ltd. Ticker symbol 4891 IPO date Nov. 22, 2022 Stock market TSE Growth Research and development of drug products, quasi-drugs, (an official drug classification approved by Japanese MHLW for Business c
Slide 12: Established second fund supporting business succession needs
3. Business plan progress report – Private equity investment Established second fund which supporting the business succession needs and increased the commitment amount Main portfolio of 1st fund Outlie of 2nd fund Succession Investment Limited Name Partnership, Ⅱ Date of establishment 16, August 202
Slide 13: Renewable energy – solar systems with storage batteries on rooftops
3. Business plan progress report – Renewable energy Invested in solar power systems with storage batteries installed on the rooftops of distribution centers Strategic investee; Strategic investee; KIC Holdings Inc. Smart Solar Corporation KIC Holdings Inc., one of the strategic investees, develope
Slide 14: Logistic warehouse
3. Business plan progress report – Logistic warehouse Received profit dividends from the sale of KIC Sayamahidaka Distribution Center Strategic investee; KIC Holdings Inc. Location Hidaka City, Saitama approximately 0.5 km from the Ken-O Expressway "Sayamahidaka IC", Access approximately 4.8km from
Slide 15: Facility for the elderlies
3. Business plan progress report – Facility for the elderlies Posted fund interest profits from the sale of facility for the elderlies in Minamiaoyama, Minato-ku Name Plaisant Luxe Minami Aoyama about 15 minutes from Tokyo Metro Hibiya Line Hiroo Station, 17 minutes from Tokyo Metro Access Chiyoda L
Slide 16: New investment area – Anime Festival Asia Singapore 2022
3. Business plan progress report – New investment area ”Anime Festival Asia Singapore 2022” held with a record number of visitors Partner company; PIA Global Entertainment Corporation JAIC participated in “AFA”, one of the largest J-POP cultural events in Southeast Asia, as an executive committee
Slide 17: 4. Result forecasts
4. Result forecasts Business policy for FY Mar. 2023 P18 Breakdown of result forecast P19 Cautionary statements P20 Financial Results Overview for 3rd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 - 17 -
Slide 18: Result forecasts for FY Mar. 2023 - Business policy
4. Result forecasts for FY Mar. 2023 - Business policy Secure profits and funds by selling existing financial investment assets Business Increase the balance of project investment based on the new investment policy Policy Establish a hands-on investment style through collaboration in project i
Slide 19: Breakdown of result forecast
4. Result forecasts for FY Mar. 2023 - Breakdown of result forecast Result forecast FY2023 Actual achievement (million yen) (Revised on '22 FY 2023 3Q ratio Nov.) Operating revenue 3,150 2,688 85.4% Operating cost 1,690 1,774 105.0% Operating gross profit 1,460 914 62.6% SG&A expenses 1,140 864 75.9
Slide 20: Cautionary statements
4. Result forecasts for FY Mar. 2023 - Cautionary statements 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 rea
Slide 21: 5. Appendix
5. Appendix Renewable energy projects P22 List of project oriented investments P23 Strategic investment P27 Asia network P28 Funds & investment activities P29 Business results & financial position P30 Break down of operating revenue & operating cost P31 Business field P32 Profit structure P33 Core c
Slide 22: Renewable energy projects
5. Appendix - Renewable energy projects (as of December 2022) Mega solar projects Started electricity sales 9 projects (11 power plants) 22.2 MW Hokkaido, Mega Solar, Under construction or under planning 4 projects 8.5 MW 1 project 2.3MW Total 13 projects (15 power plants) 30.7 MW attributable to JA
Slide 23: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of December 2022) Type of No. Name of power plant or Location Generation Current status FIT project Capacity [MW] [tax excluded, ¥] Solar 1 Nishiki-cho, Kuma-gun, Kumamoto(*) 3.1 Started electricity sales in Dec. 2015 40 2 Nomaike solar power pl
Slide 24: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of December 2022) Type of project No. Location Generation Capacity Current status FIT [MW] [tax excluded, ¥] solar power 1 Koshigaya City, Saitama 0.2 Started electricity sales in Dec. 2022 － systems with storage 2 Hidaka City, Saitama 0.3 Start
Slide 25: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of December 2022) Type of No. Location Project scale Current status project Facility for 8-story complex facility with a capacity of 1 Shinonome, Koto-ku, Tokyo Under construction the elderly 100 people 1 Hamamatsu City, Shizuoka Started operati
Slide 26: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of December 2022) Type of No. Location Project scale Current status project Existing part: started operation in Vegetable Mar. 2019 Tamba Sasayama City, Hyogo Annual production: 470 tons in total plant Expansion part: full-scale operation starte
Slide 27: Strategic investment
5. Appendix – Strategic investment Renewable Japan Co., Ltd. Smart Solar Corporation social inclu CO., LTD. Partner company in mega solar Partner company in mega solar Partner company in projects for projects projects group homes for the handicapped IPO date : 22 Dec. 2021 Investment Exit: Nov. 2022
Slide 28: Asia network
5. Appendix - Asia network Financial Results Overview for 3rd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 - 28 -
Slide 29: Funds & investment activities
5. Appendix - Funds & investment activities FY 2022 FY 2023 (JPY million) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 (3Q) (3Q) New & increased funds 1,000 2,000 1,359 151 1,001 1,001 2,701 AUM of funds - total *1 19,150 16,494 17,390 16,450 16,463 16,091 14,813 AUM of funds - JAIC *1 5,867 5,344 5,163
Slide 30: Business results, financial position
5. Appendix - Business results, financial position (Previous accounting standards) FY 2022 FY 2023 (JPY million) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 (3Q) (3Q) Business results Operating revenues 5,403 2,475 2,760 3,089 2,409 1,752 2,688 Operating gross profit 2,328 1,286 1,359 1,301 1,276 722 91
Slide 31: Statement of Income - break down
5. Appendix - Statement of Income - break down (Previous accounting standard) FY2022 FY2023 (JPY:million) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Change(%) (3Q) (3Q) １． Fund management operation Fund management fees and others 277 241 199 169 154 119 103 (13.7%) Success Fees 86 - - - - - - - Operati
Slide 32: Business field
5. Appendix - Business field Private equity investment Strategic investment Project oriented investment JAIC provides growth capital in venture Strategic investment in partner JAIC has been investing to renewable energy companies and small and medium sized companies that correspond to industries rep
Slide 33: Profit structure – Private equity investment
5. Appendix - Profit structure – Private equity investment • Private equity investment is an investment in promising companies centered on venture companies and small and medium- sized enterprises in the Asian region including Japan. We support investee companies to increase their corporate value an
Slide 34: Profit structure – Project oriented investment
5. Appendix - Profit structure – Project oriented investment • We invest in SPCs (special purpose companies) that own facilities such as power plants, factories, residential facilities and warehouses. We construct these facilities and receive the profits generated by the operation of the facilities
Slide 35: Core competence
5. Appendix - Core competence Historical background in Asian region Since its establishment in 1981 by the Japan Association of Corporate Executives (Keizai Capability to capture up-to-date Doyukai), JAIC has contributed to economic business information exchange between Japan and Asian countries ove
Slide 36: Efforts for SDGs
5. Appendix – Efforts for SDGs Becoming an SDGs investment company as our core value, we will thoroughly carry out investment activities with a strong awareness of SDGs based on our management policy. Financial Results Overview for 3rd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 -
Slide 37: Company data
5. Appendix - Company data (as of December 31, 2022) Company name Japan Asia Investment Co., Ltd. Abbreviation; JAIC Head office 2F Medical Friend Building, 3-2-4 Kudn-kita, Chiyoda-ku, Tokyo 102- 0073, Japan Established July 10, 1981 Paid-in capital 5,426 million yen Listed market Tokyo Stock Excha
Slide 38: Disclaimer
Disclaimer The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAIC. Any forward-looking statements in this document are based on materials available at the time of its compilation and no guarantee can be made as to the
Slide 39: https://jaic-vc.co.jp
https://jaic-vc.co.jp Contact to: Kenji Kishimoto, Executive Officer Miyuki Maruyama, Administration Group IR e-mail : ir@jaic-vc.co.jp Financial Results Overview for 3rd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 - 39 -
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