Japan Asia Investment Company, Limited · TSE:8518
Japan Asia Investment — FY2023 Earnings Presentation
45 slides from Japan Asia Investment's earnings presentation, May 15, 2023
Slide 1: Financial Results Overview for Year Ended March 31, 2023
Financial Results Overview for Year Ended March 31, 2023 Japan Asia Investment Co., Ltd. (JAIC) (TSE 8518) Announcement date : May 15, 2023 Financial Results Overview for Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 -1-
Slide 2: Contents
Contents 1 Summary P3 2 Results for the current fiscal year (year-on-year) P4 Progress of the Medium-Term Management Plan 3 P9 (Numerical Plan) Progress of the Medium-Term Management Plan 4 P14 (Action Plan) 5 Appendix P19 The figures in this document are based on consolidated financial statements p
Slide 3: 1. Summary
1. Summary Results for the current fiscal year (year-on-year) • Operating revenue was ¥ 3,017 million (up, 25.2 %) and net loss attributable to owners of parent was ¥ (269) million (compared to profit attributable to owners of parent of 49 million yen for the the previous fiscal year). • Sales of
Slide 4: 2. Results for the current fiscal year
2. Results for the current fiscal year Outline of results P5 Break down of operating revenue & operating cost P8 Financial Results Overview for Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 -4-
Slide 5: Outline of results - I/S
2. Results for the current fiscal year - Outline of results - I/S (million yen) FY 2022 FY 2023 Change Operating revenue 2,409 3,017 25.2% Operating cost 1,133 2,056 81.4% Operating gross profit 1,276 961 (24.6%) SG&A expenses 1,189 1,147 (3.6%) Operating income 86 (185) - Ordinary income 61 (224) -
Slide 6: Outline of results - B/S
2. Results for the current fiscal year - Outline of results - B/S fluctuation factors (million yen) FY 2022 FY 2023 Change (billion yen) Total assets 14,972 13,413 (10.4%) repayments of loan (0.8), execution of investments & Cash and deposits 2,740 2,464 (10.1%) loans (2.9), expenses etc.(0.9), coll
Slide 7: Outline of results - C/F
2. Results for the current fiscal year - Outline of results - C/F (JPY million) FY 2022 FY 2023 Operating cash flow (145) 157 Investing cash flow 212 0 Financing cash flow (1,007) (806) Change in net cash flow (903) (635) Cash & cash equivalents at end of period 2,397 1,762 Operating cash flow; ne
Slide 8: Break down of operating revenue & operating cost
2. Results for the current fiscal year - Break down of operating revenue & operating cost Total Private equity investment Project oriented investment （JPY million） FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 Operating revenue 2,409 3,017 1,235 2,076 1,174 941 Fund management fees etc. 154 134 14
Slide 9: 3. Progress of the Medium-Term Management Plan (Numerical Plan)
3. Progress of the Medium-Term Management Plan (Numerical Plan) Progress in FY 2023 P10 Breakdown of result forecast of FY 2024 P11 Progress in cumulative over 3 years P12 Cautionary statements P13 Financial Results Overview for Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 -9-
Slide 10: Progress in FY 2023
3. Progress of the Medium-Term Management Plan (Numerical Plan) - Progress in FY 2023 Result forecast FY2022 Actual achievement (million yen) (Disclosed on FY 2023 ratio '22 May) Operating revenue 3,000 3,017 100.6% Operating cost 1,050 2,056 195.8% Operating gross profit 1,950 961 49.3% SG&A expens
Slide 11: Breakdown of result forecast FY 2024
3. Progress of the Medium-Term Management Plan (Numerical Plan)- Breakdown of result forecast FY 2024 Break down of operating revenue： Actual Result forcast Result forcast (million yen) Change FY 2023 FY2024 FY2024(2Q) Proceeds of sales of operational investment securities： Operating revenue 3,017 2
Slide 12: Progress in cumulative over 3 years
3. Progress of the Medium-Term Management Plan (Numerical Plan)- Progress in cumulative over 3 years Profit attributable to owners of Breakdown of cumulative gross operating parent Unit: ¥M profit over three years Unit: ¥M 850 Three-year cumulative plan Three-year cumulative actual & 550 compared to
Slide 13: Cautionary statements
3. Progress of the Medium-Term Management Plan (Numerical Plan)- 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 difficu
Slide 14: 4. Progress of the Medium-Term Management Plan (Action Plan)
4. Progress of the Medium-Term Management Plan (Action Plan) Business policy P15 Progress in FY 2023 P16 Issues and measures for the FY 2024 P18 Financial Results Overview for Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 - 14 -
Slide 15: Business policy
4. Progress of the Medium-Term Management Plan (Action Plan) - 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 co
Slide 16: Progress in FY 2023
4. Progress of the Medium-Term Management Plan (Action Plan) - Progress in FY 2023 Action plan for 3 years Progress in FY 2023 Liquidate existing assets and complete asset TMS Co., Ltd. achieved IPO in Nov. 2022. replacement. Established “Succession Investment Limited Private equity Originat
Slide 17: Progress in FY 2023
4. Progress of the Medium-Term Management Plan (Action Plan) - Progress in FY 2023 Action plan for 3 years Progress in FY 2023 Built up 3 group homes and established a total of 10 Healthcare (group group homes Invest in 50 projects by originating funds from major home for disabled The fund which
Slide 18: Issues and measures for the FY 2024
4. Progress of the Medium-Term Management Plan (Action Plan) - Issues and measures for the FY 2024 Issues Measures Gains on IPOs and the sale of unlisted shares of investee companies with relatively large Private equity Enhance hands-on support mainly to strategic investment amount are lower tha
Slide 19: 5. Appendix
5. Appendix Examples of Business Progress P20 Renewable energy projects P28 List of project oriented investments P29 Strategic investment P33 Asia network P34 Funds & investment activities P35 Business results & financial position P36 Break down of operating revenue & operating cost P37 Business fie
Slide 20: Examples of Business Progress - Private equity investment
5. Appendix - Examples of Business Progress - Private equity investment Established and increased Succession Investment Limited Partnership, Ⅱ Name Succession Investment Limited Partnership, Ⅱ Date of establishment 16, August 2022 General Partner AJ Capital Co., Ltd. [JV as a 50% stake in JAIC and A
Slide 21: Examples of Business Progress - Renewable energy
5. Appendix - Examples of Business Progress - Renewable energy 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, developed
Slide 22: Invested in NON-FIT type biomass power generation project in Mie
5. Appendix - Examples of Business Progress - Renewable energy Invested in NON-FIT type biomass power generation project in Mie Operator Power Aid Mie G.K. Representative Biomass Power Technologies Co., Ltd. ＵＲＬ https://www.power-aid-group.co.jp/ Location of power 24 Kinogo-cho, Matsusaka-shi, Mie (
Slide 23: Examples of Business Progress - Smart agriculture
5. Appendix - Examples of Business Progress - Smart agriculture Morvel Farm, a strategic investee company, takes over the management of a vegetable factory operating company in Yabu City, Hyogo Prefecture One of our strategic investee company, Morvel Farm, is a partner company that operates a vege
Slide 24: Examples of Business Progress - Healthcare - Facility for the elderly
5. Appendix - Examples of Business Progress - Healthcare - Facility for the elderly Nursing home for the elderly "Plaisant Grand Toyosu" completed and opened at “AIP25 Toyosu Building”, large-scale complex elderly facility in Shinonome 1-chome, Koto-ku, Tokyo Partner: AIP Healthcare Japan G.K. Name
Slide 25: Healthcare - Group home for disabled people
5. Appendix - Examples of Business Progress - Healthcare - Group home for disabled people Expanded to 10 group homes by strengthening cooperation with regional financial institutions Partner: Social Inclu Inc. Financial Results Overview for Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2
Slide 26: Examples of Business Progress - New investment area
5. Appendix - Examples of Business Progress - New investment area "KIKI BASE FUJISAWA" , a shared facility for people who enjoy creative activities, in Fujisawa City, Kanagawa Prefecture Partner; ENJOYWORKS In April 2023, the former factory in Fujisawa City, Kanagawa Prefecture was renovated as a
Slide 27: M&A advisory business - Asian Market Planning
5. Appendix - Examples of Business Progress - M&A advisory business Asian Market Planning Co., Ltd. Joined JAIC Group as a subsidiary Name Asian Market Planning Co., Ltd. Representative President & CEO Yasuji Kibayashi M&A advisory services including cross-border Description of and fully committed s
Slide 28: Renewable energy projects (as of March 2023)
5. Appendix - Renewable energy projects (as of March 2023) Mega solar projects Started electricity sales 10 projects (12 power plants) 24.7 MW Hokkaido, Mega Solar, Under construction or under planning 3 projects 6.0 MW 1 project 2.3MW Total 13 projects (15 power plants) 30.7 MW attributable to JAIC
Slide 29: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of March 2023) 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 plant
Slide 30: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of March 2023) 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 Started
Slide 31: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of March 2023) Type of No. Location Project scale Current status project Facility for 8-story complex facility with a capacity of Preparing for operation (Started 1 Shinonome, Koto-ku, Tokyo the elderly 100 people operation in Apr. 2023) 1 Hamam
Slide 32: List of project-oriented investments
5. Appendix - List of project-oriented investments (as of March 2023) 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 started i
Slide 33: 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 34: Asia network
5. Appendix - Asia network Financial Results Overview for Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 - 34 -
Slide 35: Funds & investment activities
5. Appendix - Funds & investment activities (JPY million) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 New & increased funds 1,000 2,000 1,359 151 1,001 3,701 AUM of funds - total *1 19,150 16,494 17,390 16,450 16,463 15,850 AUM of funds - JAIC *1 5,867 5,344 5,163 5,434 4,953 3,389 Execution of
Slide 36: Business results, financial position (Previous accounting standards)
5. Appendix - Business results, financial position (Previous accounting standards) (JPY million) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Business results Operating revenues 5,403 2,475 2,760 3,089 2,409 3,017 Operating gross profit 2,328 1,286 1,359 1,301 1,276 961 SG&A expenses 1,311 1,109
Slide 37: Statement of Income - break down
5. Appendix - Statement of Income - break down (Previous accounting standard) (JPY:million) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Change(%) １． Fund management operation Fund management fees and others 277 241 199 169 154 134 (12.8%) Success Fees 86 - - - - - - Operating revenue 364 241 199
Slide 38: 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 39: 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 40: 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 41: 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 Thr
Slide 42: 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 Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 - 42
Slide 43: Company data (as of March 31, 2023)
5. Appendix - Company data (as of March 31, 2023) 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 Exchange
Slide 44: 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 45: Contact
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 Year Ended FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2023 - 45 -