Japan Asia Investment Company, Limited · TSE:8518

Japan Asia Investment — Q2 FY Mar. 2023 Earnings Presentation

44 slides from Japan Asia Investment's earnings presentation, Nov 14, 2022

  1. Slide 1: Financial Results Overview for 2nd Quarter Ended September 30, 2022

    Financial Results Overview nd for 2 Quarter Ended September 30, 2022 Japan Asia Investment Co., Ltd. (JAIC) (TSE 8518) Announcement date : November 14, 2022 Financial Results Overview for 2nd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2022 -1-

  2. 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 P22 5 Appendix P26 The figures in this document are based on consolidated financial statements prepared in accordance with the previous accounting standards. Financial Resu

  3. Slide 3: 1. Summary

    1. Summary  Results for the current quarter (year-on-year) • Operating revenue was ¥ ６６９ million (up, 75.8 %). Sales of listed shares progressed in Japan and gains from project-oriented investments increased. • Quarterly net loss attributable to owners of parent was ¥ (６５５) million (down, ¥12 milli

  4. 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 2nd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2022 -4-

  5. Slide 5: Results for the current quarter - Outline of results - I/S

    2. Results for the current quarter - Outline of results - I/S FY 2022 FY 2023 (million yen) Change (2Q) (2Q) Operating revenue 381 669 75.8% Operating cost 327 715 118.8% Operating gross profit 53 (46) - SG&A expenses 550 552 0.4% Operating income (496) (598) - Ordinary income (538) (640) - Profit a

  6. Slide 6: Results for the current quarter - Outline of results - B/S

    2. Results for the current quarter - Outline of results - B/S fluctuation factors (million yen) FY 2022 FY 2023 (2Q) Change (billion yen) Total assets 14,972 13,576 (9.3%) repayments of loan (0.5), execution of investments & Cash and deposits 2,740 2,394 (12.6%) loans (1.0), expenses etc.(0.4), coll

  7. Slide 7: Results for the current quarter - Outline of results - C/F

    2. Results for the current quarter - Outline of results - C/F (JPY million) FY 2022 (2Q) FY 2023 (2Q) Operating cash flow (1,232) 126 Investing cash flow 55 (0) Financing cash flow (697) (494) Change in net cash flow (1,855) (342) Cash & cash equivalents at end of period 1,445 2,055  Operating cash

  8. 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 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 (2Q) (2Q) (2Q) (2Q) (2Q) (2Q) Operating revenue 381 669 293 361 87 308 Fund management fees

  9. Slide 9: 3. Business plan progress report

    3. Business plan progress report Numerical plan P10 Action plan P11 Private equity investment P12 Renewable energy P14 Distribution centre (logistics warehouse) P16 Healthcare (facility for the elderly) P17 Healthcare (group home for the handicapped) P18 New investment area P20 Financial Results Ove

  10. Slide 10: Business plan progress report – Numerical plan

    3. Business plan progress report – Numerical plan Revised result Actual forecast Achievement (million yen) FY 2023 (Disclosed on ratio 1st Half '22 Aug.) Operating revenue 1,330 669 50.4% Operating cost 740 715 96.8% Operating gross profit 590 (46) - SG&A expenses 540 552 102.3% Operating income 50

  11. Slide 11: Business plan progress report – Action plan

    3. Business plan progress report – Action plan Action plan for 3 years Progress in second year (since Apr. 2022)  Liquidate existing assets and complete asset replacement.  “Succession Investment Limited Partnership, Ⅱ” was Private equity  Originate three new funds. newly established. The fund is

  12. Slide 12: Private equity investment: Establish second fund for business succession

    3. Business plan progress report – Private equity investment Establish second fund which supporting the business succession needs Main portfolio of 1st fund Outlie of 2nd fund Succession Investment Limited Name Partnership, Ⅱ Date of establishment 16, August 2022 AJ Capital Co., Ltd General Partner

  13. Slide 13: Private equity investment: Executed 2 strategic investments

    3. Business plan progress report – Private equity investment Executed 2 strategic investments cycloop Co., Ltd. Electric assisted bicycle subscription service “NORUDE” 366 Co., Ltd. Producing perpetual memorial tree burial/ Supporting DX of religious corporations 静岡県 裾野市 光明寺 樹木葬 裾野の森® 神奈川県 小田原市 東京都

  14. Slide 14: Renewable energy: non-FIT solar on distribution center rooftops

    3. Business plan progress report – Renewable energy Decided to invest in “non-FIT type” solar power systems installed on the rooftops of distribution centers Strategic investee; Strategic investee; KIC Holdings Inc. Smart Solar Corporation  These distribution centers were developed by KIC Holdings

  15. Slide 15: Renewable energy: Mega solar power plant in Iwaki City sold

    3. Business plan progress report – Renewable energy Mega solar power plant in Iwaki City, Fukushima was sold Location Iwaki City, Fukushima Maximum around ２．４ MW output Around 2,9５0 MWh Expected （Equivalent to annual annual power consumption of power approx. 620 average generation households ※） Star

  16. Slide 16: Logistic warehouse: KIC Sayamahidaka Distribution Center sold

    3. Business plan progress report – Logistic warehouse KIC Sayamahidaka Distribution Center was sold 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 Seibu Shinjuku Line "Sayama City"

  17. Slide 17: Facility for the elderlies sold

    3. Business plan progress report – Facility for the elderlies Facility in Minamiaoyama, Minato-ku was sold Name Plaisant Luxe Minami Aoyama about 15 minutes from Tokyo Metro Hibiya Line Hiroo Station, 17 minutes from Tokyo Metro Access Chiyoda Line Omotesando Station, about 15 minutes from Minami Ao

  18. Slide 18: Group home for the handicapped: 3 group homes built

    3. Business plan progress report – Group home for the handicapped 3 group homes were built up in Kagawa and Gunma Strategic investee; social inclu CO., LTD. Social Inclu Home Takamatsu-kagawa Town [Kagawa] Social Inclu Home Kiriu-Niizato [Gunma] Social Inclu Home Ootayabuzuka [Gunma] Financial Resul

  19. Slide 19: Group home for the handicapped: Expanded to 10 group homes

    3. Business plan progress report – Group home for the handicapped Expanded to 10 group homes by strengthening cooperation with regional financial institutions  By strengthening cooperation with regional financial institutions, the speed of project development has accelerated, and the target area ha

  20. Slide 20: New investment area: Invested in 2 entertainment contents

    3. Business plan progress report – New investment area Invested in 2 entertainment contents Partner company; PIA Global Entertainment Corporation ”NAKED FLOWERS FOR YOU” ”Anime Festival Asia Singapore 2022” Through PIA Co., Ltd., invested in Tokyo's first permanent In October, we participated in one

  21. Slide 21: New investment area: Shared atelier project in Fujisawa City

    3. Business plan progress report – New investment area Invested in a shared atelier project in Fujisawa City, Kanagawa Partner company; ENJOYWORKS A photo of "Sakurayama Shared Atelier" where ENJOYWORKS renovated an abandoned factory in Sakurayama, Zushi City, Kanagawa.  Invested in a shared atelie

  22. Slide 22: 4. Result forecasts

    4. Result forecasts Business policy for FY Mar. 2023 P23 Breakdown of result forecast P24 Cautionary statements P25 Financial Results Overview for 2nd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2022 - 22 -

  23. Slide 23: 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

  24. Slide 24: Result forecasts for FY Mar. 2023 - Breakdown of result forecast

    4. Result forecasts for FY Mar. 2023 - Breakdown of result forecast Result forecast Result forecast FY2022 FY2022 (million yen) Change (%) (Disclosed on '22 (Revised on '22 May) Nov.) Operating revenue 3,000 3,150 5.0% Operating cost 1,050 1,690 61.0% Operating gross profit 1,950 1,460 (25.1%) SG&A

  25. Slide 25: Result forecasts for FY Mar. 2023 - 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

  26. Slide 26: 5. Appendix

    5. Appendix Renewable energy projects P27 List of project oriented investments P28 Strategic investment P32 Asia network P33 Funds & investment activities P34 Business results & financial position P35 Break down of operating revenue & operating cost P36 Business field P37 Profit structure P38 Core c

  27. Slide 27: Appendix - Renewable energy projects (as of September 2022)

    5. Appendix - Renewable energy projects (as of September 2022) Mega solar projects Started electricity sales 9 projects (11 power plants) 22.2 MW Hokkaido, 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 JAIC 1

  28. Slide 28: Appendix - List of project oriented investments

    5. Appendix - List of project oriented investments (as of September 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 p

  29. Slide 29: Appendix - List of project oriented investments

    5. Appendix - List of project oriented investments (as of September 2022) Type of project No. Location Generation Capacity Current status FIT [MW] [tax excluded, ¥] Woody biomass Matsusaka City, Mie 2.0 Started electricity sales in Jan. 2018 － Bio gas 1 Hamura City, Tokyo 1.1 Started electricity sal

  30. Slide 30: Appendix - List of project oriented investments

    5. Appendix - List of project oriented investments (as of September 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 operat

  31. Slide 31: Appendix - List of project oriented investments

    5. Appendix - List of project oriented investments (as of September 2022) Type of No. Location Details of project Current status project Others Opened Commercial building, site area 1,752 m², 1 basement floor, 6 1 Aichi *investment in building which has floors above ground already started operation

  32. Slide 32: Appendix – 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 Stock market : TSE Mothers

  33. Slide 33: Appendix - Asia network

    5. Appendix - Asia network Financial Results Overview for 2nd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2022 - 33 -

  34. Slide 34: Appendix - Funds & investment activities

    5. Appendix - Funds & investment activities FY 2022 FY 2023 (JPY million) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 (2Q) (2Q) New & increased funds 1,000 2,000 1,359 151 1,001 1,001 1,801 AUM of funds - total *1 19,150 16,494 17,390 16,450 16,463 15,884 16,787 AUM of funds - JAIC *1 5,867 5,344 5,163

  35. Slide 35: Appendix - 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 (2Q) (2Q) Business results Operating revenues 5,403 2,475 2,760 3,089 2,409 381 669 Operating gross profit 2,328 1,286 1,359 1,301 1,276 53 (46) SG

  36. Slide 36: Appendix - 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 (2Q) (2Q) Change(%) １． Fund management operation Fund management fees and others 277 241 199 169 154 81 69 (14.7%) Success Fees 86 - - - - - - - Operating

  37. Slide 37: Appendix - 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

  38. Slide 38: Appendix - 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

  39. Slide 39: Appendix - 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

  40. Slide 40: Appendix - 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

  41. Slide 41: Appendix – 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 2nd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2022 -

  42. Slide 42: Appendix - Company data (as of September 30, 2022)

    5. Appendix - Company data (as of September 30, 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 Exch

  43. Slide 43: 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

  44. Slide 44: 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 2nd Quarter of FY Mar. 2023 © Japan Asia Investment Co., Ltd. 2022 - 44 -

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