Japan Asia Investment Company, Limited · TSE:8518
Japan Asia Investment — Q2 FY Mar. 2024 Earnings Presentation
39 slides from Japan Asia Investment's earnings presentation, Nov 14, 2023
Slide 1: Financial Results Overview for 2nd Quarter Ended September 30, 2023
Financial Results Overview nd for 2 Quarter Ended September 30, 2023 Japan Asia Investment Co., Ltd. (JAIC) (TSE 8518) Announcement date : Nov. 14, 2023 Financial Results Overview for 2nd Quarter of FY Mar. 2024 © Japan Asia Investment Co., Ltd. 2023 -1-
Slide 2: Contents
Contents 1 Summary P3 2 Results for the current quarter (year-on-year) P4 Progress of the Medium-Term Management Plan 3 P9 (Action Plan) 4 Result forecast P11 5 Appendix P13 The figures in this document are based on consolidated financial statements prepared in accordance with the previous accountin
Slide 3: 1. Summary
1. Summary Results for the current quarter (year-on-year) • Operating revenue decreased to ¥ 426 million (down, 36.3 %). No project-oriented investment was sold. • Quarterly net loss attributable to owners of parent was ¥ (560) million (up, ¥９5 million). • Sales of stocks with high margin progress
Slide 4: 2. Results for the current quarter
2. Results for the current quarter Outline of results P5 Breakdown of operating revenue & operating cost P8 Financial Results Overview for 2nd Quarter of FY Mar. 2024 © 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 2023 FY 2024 (million yen) Change (2Q) (2Q) Operating revenue 669 426 (36.3%) Operating cost 715 420 (41.3%) Operating gross profit (46) 6 - SG&A expenses 552 542 (1.9%) Operating income (598) (535) - Ordinary income (640) (558) - Prof
Slide 6: Outline of results - B/S
2. Results for the current quarter - Outline of results - B/S fluctuation factors (million yen) FY 2023 FY 2024(2Q) Change (billion yen) Total assets 13,413 12,147 (9.4%) repayments of loan (0.5), execution of investments & loans Cash and deposits 2,464 2,032 (17.5%) (0.8), expenses etc.(0.2), colle
Slide 7: Outline of results - C/F
2. Results for the current quarter - Outline of results - C/F (JPY million) FY 2023(2Q) FY 2024(2Q) Operating cash flow 126 385 Investing cash flow （0） 1 Financing cash flow (494) (509) Change in net cash flow (342) (115) Cash & cash equivalents at end of period 2,055 1,646 Operating cash flow inc
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 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 (2Q) (2Q) (2Q) (2Q) (2Q) (2Q) Operating revenue 669 426 361 401 308 25 Fund management fees
Slide 9: 3. Progress of the Medium-Term Management Plan (Action Plan)
3. Progress of the Medium-Term Management Plan (Action Plan) Progress in the current quarter P10 Financial Results Overview for 2nd Quarter of FY Mar. 2024 © Japan Asia Investment Co., Ltd. 2023 -9-
Slide 10: Progress of the Medium-Term Management Plan - Progress in the current quarter
3. Progress of the Medium-Term Management Plan (Action Plan) - Progress in the current quarter Action plan for 3 years Progress in FY 2024 2Q (6 months) Liquidate existing assets and complete JAPAN SYSTEMBANK CORPORATION asset replacement. achieved IPO. Private equity Originate three new funds
Slide 11: 4. Result forecast
4. Result forecast Progress for the current quarter and full-year forecast P12 Cautionary statements P13 Financial Results Overview for 2nd Quarter of FY Mar. 2024 © Japan Asia Investment Co., Ltd. 2023 - 11 -
Slide 12: Result forecast - Progress for the current quarter and full-year forecast
4. Result forecast-Progress for the current quarter and full-year forecast Result forecast Result forecast Actual FY2024 1st Half Progression FY2024 Progression (million yen) FY 2024 (2Q) (disclosed in May ratio (disclosed in ratio 2023) May 2023) Operating revenue 426 525 81.3% 2,300 18.6% Operatin
Slide 13: Result forecast - Cautionary statements
4. Result forecast - 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 reasonably in the rap
Slide 14: 5. Appendix
5. Appendix Business policy of the Medium-Term Management Plan P15 Cases of business progress P16 Renewable energy projects P21 Health care projects (group home for disabled people) P22 List of project-oriented investments P23 Strategic investment P27 Asia network P28 Funds & investment activities P
Slide 15: Business policy of the Medium-Term Management Plan
5. Appendix - Business policy of the Medium-Term Management Plan 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
Slide 16: JAPAN SYSTEMBANK CORPORATION achieved IPO on the NSE Main Market
5. Appendix - Cases of business progress JAPAN SYSTEMBANK CORPORATION achieved IPO on the NSE Main Market Ticker symbol 5530 Stock market NSE Main IPO date Apr. 14, 2023 Operation of coin-operated parking lots, sales and Business maintenance of parking equipment Representative President & CEO Nobuyo
Slide 17: Succession Investment Limited Partnership, II completed the final closing
5. Appendix - Cases of business progress Succession Investment Limited Partnership, Ⅱ completed the final closing with a total amount of ¥5,101 million Name Succession Investment Limited Partnership, Ⅱ Date of establishment 16, August 2022 General Partner AJ Capital Co., Ltd. [JV as a 50% stake in J
Slide 18: Promoting the development of mega solar projects in Tochigi Prefecture
5. Appendix - Cases of business progress Promoting the development of 3 mega solar projects, with 6.2 MW in total, in Tochigi Prefecture Kanuma City Otawara City Karasuyama Name Kamiishikawa Kamehisa Solar Nakayama Solar Solar Power Plant Power Plant Power Plant Nasu-Karasuyama Location Kanuma City
Slide 19: Group homes for disabled people started operation
5. Appendix - Cases of business progress 2 group homes for disabled people started the operation and acquired 1 built up group home Social Inclu Home Kawagoe Imafuku Social Inclu Home Iwaki Kashima Aug. 2023 : Started the operation Aug. 2023 : Started the operation Social Inclu Home Kumamoto Yatsush
Slide 20: Perpetual memorial tree burial project, Shiba Atago Forest
5. Appendix - Cases of business progress Perpetual memorial tree burial project, "Shiba Atago Forest TM“, started at Koenji Temple in Minato-ku, Tokyo. Partner: 366 Co., Ltd. In May 2023, a tree burial garden has opened near Toranomon Kamiyacho Station, Minato-ku, Tokyo. A peaceful garden away fro
Slide 21: Renewable energy projects (as of September 2023)
5. Appendix - Renewable energy projects (as of September 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 6.2 MW 1 project 2.3MW Total 13 projects (15 power plants) 30.9 MW attributable to
Slide 22: Health care projects, group home for disabled people
5. Appendix – Health care projects, group home for disabled people (as of September 2023) Number of group homes invested 18 Cyugoku Chubu 1 1 Tohoku Kyushu 1 2 Kanto 10 Shikoku 3 Financial Results Overview for 2nd Quarter of FY Mar. 2024 © Japan Asia Investment Co., Ltd. 2023 - 22 -
Slide 23: List of project-oriented investments (solar)
5. Appendix - List of project-oriented investments (as of September 2023) Type of No. Name of power plant or Location Generation Current status FIT project Capacity [MW] [excl. tax, ¥] Solar 1 Nishiki-cho, Kuma-gun, Kumamoto(*) 3.1 Started electricity sales in Dec. 2015 40 2 Nomaike solar power plan
Slide 24: List of project-oriented investments (batteries, biomass, biogas, wind)
5. Appendix - List of project-oriented investments (as of September 2023) Type of No. Location Generation Current status FIT project Capacity [MW] [excl. tax, ¥] solar power 1 Koshigaya City, Saitama 0.2 Started electricity sales in Dec. 2022 － systems with storage batteries 2 Hidaka City, Saitama 0
Slide 25: List of project-oriented investments (group homes)
5. Appendix - List of project-oriented investments (as of September 2023) Type of No. Location Project scale Current status project 1 Hamamatsu City, Shizuoka Started operation in Aug. 2020 2 Hiroshima City, Hiroshima Started operation in Aug. 2020 3 Utsunomiya City, Tochigi Started operation in Sep
Slide 26: List of project-oriented investments (vegetable plant, logistics)
5. Appendix - List of project-oriented investments (as of September 2023) Type of No. Location Project scale Current status project Existing part: started operation in Vegetable Tamba Sasayama City, Mar. 2019 Annual production: 470 tons in total plant Hyogo Expansion part: full-scale operation start
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 2nd Quarter of FY Mar. 2024 © Japan Asia Investment Co., Ltd. 2023 - 28 -
Slide 29: Funds & investment activities
5. Appendix - Funds & investment activities FY 2023 FY 2024 (JPY million) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (2Q) (2Q) New & increased funds 2,000 1,359 151 1,001 3,701 1,801 600 AUM of funds - total *1 16,494 17,390 16,450 16,463 15,850 16,787 14,664 AUM of funds - JAIC *1 5,344 5,163 5,434 4,
Slide 30: Business results, financial position
5. Appendix - Business results, financial position (Previous accounting standards) FY 2023 FY 2024 (JPY million) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (2Q) (2Q) Business results Operating revenues 2,475 2,760 3,089 2,409 3,017 669 426 Operating gross profit 1,286 1,359 1,301 1,276 961 (46) 6 SG&A
Slide 31: Statement of Income - break down
5. Appendix - Statement of Income - break down (Previous accounting standard) FY2023 FY2024 (JPY:million) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (2Q) (2Q) Change(%) １． Fund management operation Operating revenue 241 199 169 154 134 69 79 15.2% Operating cost - - - - - - - - Operating gross profit 2
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. Environment We contribute to reducing the burden on the environment by Renewable energy investing i
Slide 37: Company data (as of September 30, 2023)
5. Appendix - Company data (as of September 30, 2023) Company name Japan Asia Investment Co., Ltd. Abbreviation; JAIC 2F Medical Friend Building, 3-2-4 Kudn-kita, Chiyoda-ku, Tokyo 102- Head office 0073, Japan Established July 10, 1981 Paid-in capital 5,426 million yen Listed market Tokyo Stock Exch
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: Contact
https://www.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. 2024 © Japan Asia Investment Co., Ltd. 2023 - 39 -
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