Japan Asia Investment Company, LimitedTSE: 8518

Summary of Consolidated Financial Results for the First Quarter Ended June 30, 2024

Aug 14, 2024 at 6:21 AM UTC · Issued by Japan Asia Investment Company, Limited

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 First Quarter Ended June 30, 2024

[Japanese Standards]

(Summary of Japanese announcement)

		August 14, 2024
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:	Shun Maruyama, Representative Director, President & CEO
Contact:	Kenji Kishimoto, Board Director, Managing Executive Officer CFO
	Tel: +81-3-3221-8518 (main)

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 first quarter ended June 30, 2024 (April 1, 2024 to June 30, 2024)

(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 three months ended	822	(6.8)	211	31.8	195	51.6	180	－
June 30, 2024

For three months ended	882	125.0	160	－	129	－	(100)	－
June 30, 2023


(Note) Comprehensive Income
For three months ended June 30, 2024: 211 millions of yen (－%)
For three months ended June 30, 2023: (468) millions of yen (－%)

	Net income per share	Diluted net income
	per share

For three months ended		Yen		Yen
	10.11		10.05
June 30, 2024

For three months ended		(5.70)		－
June 30, 2023

(2) Consolidated financial position
	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen		%		Yen
As of June 30, 2024		18,593		7,239		36.4		304.74
As of March 31, 2024		16,796		6,132		33.0		312.71

(Reference) Total shareholders' equity As of June 30, 2024: 6,767 millions of yen As of March 31, 2024: 5,536 millions of yen

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
2024

Year ending March 31,		－

2025

Year ending March 31,			0.00		－	0.00		0.00
2025(forecast)

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

3. Outlook for the fiscal year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

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, 2025 (April 1, 2024 to March 31, 2025)" on page 15 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. Numerous factors could cause actual results to differ materially from these result forecasts. For details, please refer to "3. Business Performance and Financial Condition (3) Result forecast consolidated under the Previous Accounting Standard" on page 23 in "Consolidated Financial Results for the Year Ended March 31, 2024 [Japanese Standards]" disclosed on May 15, 2024.

4. Other matters

(1) Significant changes in the scope of consolidation during the period: Yes

[New - company (company name: -) Excluded 1 company (company name: 1 Investment Fund)]

Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
Changes in accounting principles, accounting estimates and correction of prior period errors
1. Changes in accounting principles due to revisions to accounting standards: Yes
2. Changes other than shown in (i) above: None
3. Changes in accounting estimates: None
4. Correction of prior period errors: None

(Note) For details, please refer to "3. Consolidated Financial Statements (4) Notes on Quarterly Consolidated Financial Statements" on page 12 of the attached documents for detailed information.

(4) No. of shares issued and outstanding (common stock)

(i) Shares issued and outstanding at	Three months ended	22,284,392	Year	ended	March	17,884,392
the end of each period (including
June 30, 2024:	shares	31,	2024:		shares
treasury stock)

(ii) Shares of treasury stock at the	Three months ended	78,009	Year	ended	March	181,009
end of each period	June 30, 2024:	shares	31,	2024:		shares
(ii) Average number of shares	Three months ended	17,851,834	Three months ended	17,703,383
during the period (cumulative
June 30, 2024:	shares	June 30, 2023:	shares
quarterly consolidated period)

Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None.

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

The additional materials of the financial results for the first quarter ended June 30, 2024 will be released on our website on August 14, 2024 (Japanese-language only).

Japan Asia Investment Co., Ltd.

Fund Consolidation

result forecasts. For details, please refer to "2. Outlook for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)" on page 15 in this report and "3. Business Performance and Financial Condition (3) Result forecast consolidated under the Previous Accounting Standard" on page 23 in "Consolidated Financial Results for the Year Ended March 31, 2024 [Japanese Standards]" disclosed on May 15, 2024.

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 three months ended	For three months ended	For the year ended
						June 30, 2023	June 30, 2024	March 31, 2024
						(from April 1, 2023	(from April 1, 2024	(from April 1, 2023
						to June 30, 2023)	to June 30, 2024)	to March 31, 2024)
	Total operating revenue				882	822	2,444
	Management fees				30	30	123

	Proceeds of	sales of	operational		600	71	1,244
	investment securities

	Fund interests	income	and Income		243	709	1,023
	gains etc.

	Other operating revenue				7	10	53


	Total operating cost				411	292	2,279
	Cost of securities sold				67	75	621

	Investment write-offs & Provision
	for allowance for possible		161	0	777
	investment losses
	Fund interests losses etc.		179	212	863

	Other operating cost				3	4	16

	Operating gross profit				470	529	165

(2) Breakdown of Loans payable and bonds
								(Millions of yen)
						As of June 30, 2023	As of June 30, 2024	As of March 31, 2024

	Total of loans payable and bonds		8,682	10,291	9,833

	Loans payable;				4,825	3,996	4,314
	Non-consolidated base


	Loans payable by project finance
	and bonds;					3,857	6,295	5,519
	Consolidated projects

Japan Asia Investment Co., Ltd.

Fund Consolidation

2. Business Position

JAIC-BackedIPOs (JAIC+Funds)

i)Number of IPOs

		For three months ended	For three months ended	For the year ended
		June 30, 2023	June 30, 2024	March 31, 2024
		(from April 1, 2023	(from April 1, 2024	(from April 1, 2023
		to June 30, 2023)	to June 30, 2024)	to March 31, 2024)
Number of IPOs (total	1 company	－	1 company
of Japan & overseas)

First price	multiple
(average of	Japan &	1.4 times	－	1.4 times
overseas)

Note: First price multiple = Market value of shares held by the Group calculated at first price/Total our acquisition cost. We do not include listed shares those we acquired by equity swaps when we calculate the first price multiple.

ii) JAIC-Backed IPOs

For three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024) No applicable items

Fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)

Company	Date of	Market	Business	Head
Name	IPO	quarters

JAPAN SYSTEMBANK			Operation of coin-operated parking	Japan
14-Apr-23	NSE Main	lots, sales and maintenance of
CORPORATION
		parking equipment

ⅲ) Unrealized gains and losses on listed operating investment stocks (Note)

			(Millions of yen)
	For three months ended	For three months ended	For the year ended
	June 30, 2023	June 30, 2024	March 31, 2024
	(from April 1, 2023	(from April 1, 2024	(from April 1, 2023
	to June 30, 2023)	to June 30, 2024)	to March 31, 2024)
Unrealized gain (loss)	152	1	(0)

Note: "Unrealized gain (loss)" shows the amount attributable to the Group of the difference between the acquisition cost and the amount recorded on the quarterly consolidated balance sheet or consolidated balance sheet of the stock listed on the stock exchange among the stocks held as operating investment securities by the Group and by the investment funds managed under the Group.

Japan Asia Investment Co., Ltd.

Fund Consolidation

Management of Investment Funds (Funds for which JAIC and its Group are responsible for management and provision of essential information)

i) Balance of funds under management

For three months ended

For the year ended

June 30, 2023

June 30, 2024

March 31, 2024

(from April 1, 2023

(from April 1, 2024

(from April 1, 2023

to June 30, 2023)

to June 30, 2024)

to March 31, 2024)

Commitment

Net asset

Commitment

Net asset

Commitment

Net asset

amount of

value of

amount of

value of

amount of

value of

investment

Number of

investment

Number of

investment

Number of

investment

funds

(Millions of

yen)

During

operation

11,712

3,957

12,596

3,887

12,612

3,928

period

Maturity

being exte

－

nded

During

liquidation

4,685

2,238

－

2,885

881

procedure

Total

[Total

16,397

12,596

15,497

commitment

6,195

3,887

4,809

[3,404]

[1,544]

[2,428]

amount

JAIC group]

ii) Funds during operation period (as of June 30, 2024)

				Total commitment
Name of fund	Inception	Maturity	amount	Features
				(Millions of yen)

					Secondary investment fund targeting
JAIC Venture Capital	Feb. 2016	Feb. 2026	2,000	mainly venture companies in Japan.
Investment	L.P.	Domestic leading financial institution

					invested in this fund.
					General partner of the Fund is a joint
					venture between JAIC and Aozora Bank,
Succession	Investment	Jun. 2017	Jun. 2027	3,000	Ltd. an affiliated company not covered by
Limited Partnership, I	the equity method.

					Supporting the business succession needs of
					SMEs in Japan.
JAIC-Solar Fund, L.P., II	Mar. 2020	Dec. 2039	1,359	Investment target of the Fund is mega solar
projects in operation.


					JAIC and Asian Market Planning Co., Ltd.
Hokkaido SME Global				jointly manage the Fund as Co-GP.
Apr. 2020	Dec. 2026	100	Investing in SMEs in Hokkaido that operate
Fund, L.P.
				or aim to operate in oversea market and that

					promote business to meet inbound demand

			Total commitment
Name of fund	Inception	Maturity	amount
(Millions of

			yen)

AJC Venture Capital
Investment Limited	Jun. 2021	Jun. 2031	1,001
Partnership

Succession Investment	Aug. 2022	Aug. 2032	5,101
Limited Partnership, Ⅱ


JAIC Wealth Fund, L.P	Jun. 2024	Dec. 2033	35

Japan Asia Investment Co., Ltd.

Fund Consolidation

Features

Secondary investment fund targeting mainly venture companies in Japan. General partner of the Fund is a joint venture between JAIC and Aozora Bank, Ltd. an affiliated company not covered by the equity method.

Supporting the business succession needs of SMEs in Japan. Managed by AJ Capital Co., Ltd, a joint venture between JAIC and Aozora Bank, Ltd.

Venture capital fund targeting mainly venture companies in Japan assuming that private banks and wealthy individuals are the main investors

Notes:

The amounts stated for funds denominated in foreign currencies are calculated based on the exchange rate prevailing on the final day of the fiscal year-end. Therefore, changes in assets under management include the amount affected by exchange rates.
The total amount of fund is listed as the amount of commitment base.

		Japan Asia Investment Co., Ltd.
3. Consolidated Financial Statements		Fund Consolidation

(1) Consolidated Balance Sheets
		(Millions of yen)
	As of March 31, 2024	As of June 30, 2024

Assets
Current assets

Cash and deposits	2,544	3,568
Operational investment securities	7,067	6,636

Allowance for possible investment loss	(1,136)	(840)
Operating loans	218	218
Other	358	676
Allowance for doubtful accounts	(103)	(103)
Total current assets	8,948	10,157
Non-current assets

Property, plant and equipment
Buildings and structures	1,711	2,049
Accumulated depreciation	(141)	(166)
Buildings and structures, net	1,570	1,882
Machinery and equipment	3,807	4,850
Accumulated depreciation	(720)	(788)
Machinery and equipment, net	3,086	4,062
Vehicles, tools, furniture and fixtures	240	228
Accumulated depreciation	(76)	(78)
Vehicles, tools, furniture and fixtures, net	164	149
Land	369	399
Construction in progress	786	141
Total property, plant and equipment	5,977	6,634
Intangible assets
Power production facilities concessions	1,195	1,147
Other	132	124
Total intangible assets	1,328	1,271
Investments and other assets
Investment securities	75	62
Distressed receivables	103	103

Other	466	466
Allowance for doubtful accounts	(103)	(103)
Total investments and other assets	542	529
Total non-current assets	7,847	8,435
Total assets	16,796	18,593

Japan Asia Investment Co., Ltd.

Fund Consolidation

		(Millions of yen)
	As of March 31, 2024	As of June 30, 2024

Liabilities
Current liabilities

Short-term borrowings	901	1,690
Current portion of bonds payable	8	8

Accrued expenses	158	398
Income taxes payable	55	31
Provision for bonuses	45	27
Other	160	168
Total current liabilities	1,330	2,325
Non-current liabilities
Bonds payable	162	162
Long-term borrowings	8,761	8,430

Deferred tax liabilities	13	14
Retirement benefit liability	127	129

Asset retirement obligations	254	290
Other	13	－
Total non-current liabilities	9,333	9,028
Total liabilities	10,663	11,353
Net assets
Shareholders' equity

Share capital	5,426	5,925
Capital surplus	3,631	3,966
Retained earnings	(3,576)	(3,396)
Treasury shares	(353)	(152)
Total shareholders' equity	5,126	6,343
Accumulated other comprehensive income

Valuation difference on available-for-sale securities	71	77

Deferred gains or losses on hedges	(13)	9

Foreign currency translation adjustment	351	336
Total accumulated other comprehensive income	409	423
Share acquisition rights	36	－
Non-controlling interests	560	472
Total net assets	6,132	7,239
Total liabilities and net assets	16,796	18,593

		Japan Asia Investment Co., Ltd.
(2) Consolidated Statements of Income		Fund Consolidation

		(Millions of yen)
	For three months ended	For three months ended
	June 30, 2023	June 30, 2024
	(from April 1, 2023	(from April 1, 2024
	to June 30, 2023)	to June 30, 2024)
Operating revenue	882	822
Operating costs	411	292
Operating gross profit	470	529
Selling, general and administrative expenses	310	318
Operating profit	160	211
Non-operating income

Interest income	1	0
Dividend income	0	0
Foreign exchange gains	11	41
Rental income from facilities	1	1
Miscellaneous income	0	0
Total non-operating income	15	43
Non-operating expenses
Interest expenses	44	46

Share issuance costs	－	12
Miscellaneous losses	1	0
Total non-operating expenses	46	59
Ordinary profit	129	195
Extraordinary income
Subsidy income	34	－
Total extraordinary income	34	－
Extraordinary losses

Loss on retirement of non-current assets	0	0
Loss on tax purpose reduction entry of non-current	34	－
assets


Total extraordinary losses	34	0
Profit before income taxes	128	195
Income taxes - current	1	1
Total income taxes	1	1
Profit	127	194
Profit attributable to non-controlling interests	228	13

Profit (loss) attributable to owners of parent	(100)	180

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