financial results overview for the 3rd quarter · financial results overview for the 3rd quarter...
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- 1 -http://www.jaic-vc.co.jp
Financial Results Overview for the 3rd Quarter
Ended December 31, 2014Japan Asia Investment Co., Ltd. (JAIC)
( TSE 8518 )Announcement: February 5, 2015
The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties including changes to economic circumstances may cause results and projections to differ materially from those presented in the document. The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAIC.The figures in this document is based on consolidated financial statements.
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Contents
Outline of Results・・・・・・・・・・・・・・・・・・・・・・P3Statement of Income・・・・・・・・・・・・・・・・・・・・P5Balance Sheet・・・・・・・・・・・・・・・・・・・・・・・・・・P10Cash Flows・・・ ・・・・・・・・・・・・・・・・・・・・・・・・・P13Investment Execution・・・・・・・・・・・・・・・・・・P14Investment Portfolio ・・・・・・・・・・・・・・・・・・・P16JAIC Backed IPOs・・・・・・・・・・・・・・・・・・・・・・P17
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Outline of Results for the 3rd Quarter Ended December 31, 2014
Business Results (Previous Accounting Standards)・Though there remains uncertainty in the future economic circumstances, recent stock
market are in recovery trend.・Achieved investment exits of Healthy Service Corporation and other unlisted
Japanese portfolio companies, however, lack of large IPO resulted in decrease of revenues and profits year-to-year basis.
・Continuous cost saving measures resulted in decrease of SG&A expenses by 12% year-to-year basis.
Financial Position (Previous Accounting Standards)・ ¥3.8 billion was repaid based on the repayment plan.・ The balance of loans and bonds with subscription rights to shares was decreased by
56% from around ¥46 billion as of March 2009 to ¥20.1 billion as of Dec 2014.
Funds & Investment Activities・Invested in promising companies meeting the objectives of funds to be organized.・As for mega solar business, invested in projects in Mie Prefecture and Iwate Prefecture
and other several larger projects are under negotiation.・Issued stock acquisition rights with clause for exercise price adjustment in Dec. 2014 to
raise funds for mega solar investments. 8% of the stock acquisition rights was exercised and ¥138 million has been raised by the end of Jan. 2015.
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Outline of Results for the 3rd Quarter Ended December 31, 2014
Note: ”PAS” Previous Accounting Standards, ”FCAS” Fund Consolidation Accounting Standards
Business results & financial position (Previous Accounting Standards)
Funds & investment activities
(JPY million) 11/3PAS
12/3PAS
13/3PAS
14/3PAS
14/3(3Q)PAS
15/3(3Q)PAS
Change(%)
14/3(3Q)FCAS
15/3(3Q)FCAS
Change(%)
Business ResultsOperating Revenues 10,979 5,396 3,784 6,155 5,071 4,221 (17%) 7,298 6,603 (10%)Operating Income 1,293 (1,878) (1,823) 852 1,243 129 (90%) 1,710 1,160 (32%)Ordinary Income 175 (2,477) (2,612) 374 856 (124) - 1,247 830 (33%)Net Income (2,044) (2,885) (2,575) 462 818 (334) - 686 (393) -Financial Position
Loans Payable, Bonds & Bondswith subscription rights to shares
32,327 28,275 25,433 24,010 24,010 20,193 -
(JPY million) 11/3 12/3 13/3 14/3 14/3(3Q) 15/3(3Q)
New & Increased Funds 1,330 11,926 4,548 - - -AUM of Funds 85,755 85,833 85,873 50,888 69,681 48,723New Investnemts 3,204 4,545 4,746 4,189 3,780 2,023Balance of Investments 42,268 36,706 33,886 25,862 26,534 19,381
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Statement of Income – Break Down
(JPY:million)11/3PAS
12/3PAS
13/3PAS
14/3PAS
14/3(3Q)PAS
15/3(3Q)PAS
Change(%)
14/3(3Q)FCAS
15/3(3Q)FCAS
Change(%)
1. Fund management operation
Fund management fees and others 1,088 966 815 733 551 401 (27%) 272 217 (20%) Success Fees 295 84 37 132 96 73 (24%) 96 75 (22%)
Operating Revenue 1,383 1,050 852 865 647 475 (27%) 368 292 (21%)Operating Cost - - - - - - - - - -Operating Gross Profit 1,383 1,050 852 865 647 475 (27%) 368 292 (21%)
2. Investment operations
Proceeds of sales of securities 8,584 3,938 2,411 4,656 3,944 3,591 (9%) 6,250 6,064 (3%) Others 776 244 290 478 373 136 (63%) 562 219 (61%)
Operating Revenue 9,360 4,183 2,701 5,134 4,317 3,727 (14%) 6,812 6,283 (8%) Cost of securities sold 6,680 3,412 1,385 2,133 1,639 1,739 6% 2,798 2,861 2% Investment write-offs 627 394 174 45 24 987 3890% 184 1,079 484% Provision for allowance for possible investment losses
(296) 978 1,863 1,435 885 207 (77%) 1,343 296 (78%)
Others 191 178 158 52 27 62 130% 63 137 115%
Operating Cost 7,203 4,964 3,582 3,666 2,576 2,997 16% 4,390 4,374 (0%)Operating Gross Profit 2,157 (780) (880) 1,468 1,740 730 (58%) 2,421 1,909 (21%)
3. OthersOperating Revenue 234 162 229 154 106 19 (82%) 117 28 (76%)Operating Cost 83 35 25 15 12 7 (39%) 24 7 (69%)Operating Gross Profit 151 126 204 139 94 11 (88%) 93 20 (78%)
TotalOperating Revenues 10,979 5,396 3,784 6,155 5,071 4,221 (17%) 7,298 6,603 (10%)Operating Cost 7,286 4,999 3,607 3,681 2,588 3,004 16% 4,414 4,381 (1%)Operating Gross Profit 3,692 396 176 2,474 2,482 1,217 (51%) 2,883 2,221 (23%)
SG&A Expenses 2,399 2,274 2,000 1,621 1,238 1,088 (12%) 1,173 1,061 (10%)Operating Income 1,293 (1,878) (1,823) 852 1,243 129 (90%) 1,710 1,160 (32%)Ordinary Income 175 (2,477) (2,612) 374 856 (124) - 1,247 830 (33%)Net Income (2,044) (2,885) (2,575) 462 818 (334) - 686 (393) -
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Statement of Income - Fund Management
・Fund management fees total was decreased by 27% year to year basis due to decrement of balance of AUM and decrement of success fees. (PAS)
・ 63% of management fees etc. was generated from funds that will reach maturity after April 2017. (PAS)
Note: ”PAS” Previous Accounting Standards
New Funds & AUM of Funds
Fund Management fees (PAS)
(JPY million) 11/3 12/3 13/3 14/3 14/3(3Q) 15/3(3Q)
New & Increased Funds 1,330 11,926 4,548 - - -AUM of Funds 85,755 85,833 85,873 50,888 69,681 48,723
(JPY million) 11/3PAS
12/3PAS
13/3PAS
14/3PAS
14/3(3Q)PAS
15/3(3Q)PAS
Change(%)
Fund Management fees Total 1,383 1,050 852 865 647 475 (27%)Management fees etc 1,088 966 815 733 551 401 (27%)Success fees 295 84 37 132 96 73 (24%)
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Statement of Income – Investment Income
・Progress of divestment of listed portfolio companies in Japan and achieved investment exits of unlisted portfolio companies in Japan such as Healthy Service Corporation.
・Lack of large IPO such as M&A Capital Partners Co., Ltd. in last year, proceeds and realized capital gains were decreased year-to-year basis (PAS).
・Due to loss from Hakugen Co., Ltd. investment write-offs increased year-to-year basis and resulted in decrease of 53% of investment income (PAS).
■ ”PAS” Previous Accounting Standards■ “Cost of securities sold” in above table doesn’t include “Investment write-offs”
(JPY million) 11/3PAS
12/3PAS
13/3PAS
14/3PAS
14/3(3Q)PAS
15/3(3Q)PAS
Change(%)
Proceeds of sales ofsecurities 8,584 3,938 2,411 4,656 3,944 3,591 (9%)Cost of securities sold 6,680 3,412 1,385 2,133 1,639 1,739 6%Realized capital gains 1,904 526 1,025 2,523 2,304 1,851 (20%)Investment write-offs 627 394 174 45 24 987 3890%Provision for allowance forpossible investment losses (296) 978 1,863 1,435 885 207 (77%)Investment income 1,573 (847) (1,012) 1,042 1,394 656 (53%)
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Statement of Income – Investment Income
PAS
Note: ”PAS” Previous Accounting Standards
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Statement of Income - Selling, General and Administrative Expenses
Continuous cost saving measures resulted in decrease of SG&A expenses by 12% year-to-year basis (PAS).
PAS
9 months
11/3 12/3 13/3 14/3 15/3(3Q)
Consol 133 109 80 46 43Non-consol 80 66 42 23 23
NO.ofemployee
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Balance Sheet - Debt Outstanding
• ¥3.8 billion was repaid based on the repayment plan.• Outstanding balance of loans payable and bonds with subscription rights to shares were decreased by 56% from
around ¥46 billion as of March 2009 to ¥20.1 billion as of Dec 2014.
PAS
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Balance Sheet - Allowance For Possible Investment Losses
■Since it is considered that improving the correlation of above indication data and financial statements makes the indication data more useful, allowance reserve ratio was calculated without considering balance of taxable write-offs from FY12/3.
■Because of above mentioned change, balance of operational investment securities and balance of allowance for possible investment losses are coincident with the balances in consolidated balance sheets (PAS) respectively.
PAS
Due to divestment and loss disposition of portfolio companies with allowance, allowance reserve ratio was 23.6% (PAS) down by 6.2 points compared to last fiscal year.
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Balance Sheet – Breakdown of Operational Investment Securities
◆By Area ◆By Industry
(JPY Million) (JPY Million)
14/3PAS
15/3(3Q)PAS
14/3PAS
15/3(3Q)PAS
Japan 11,091 7,562 QOL(Quality of Life) 6,027 3,212China, Hong Kong, Taiwan 3,568 2,985 IT/Internet 3,734 2,857Southeast Asia 807 448 Material/Chemical 264 264Others 1 1 Machinery/Automobile 1,604 1,323
Consumer related 190 294Construction/Real estate/Finance 921 844Retail/Restaurant 523 468Service 1,199 735Others 1,001 996
Total ① 15,469 10,997 Total ① 15,469 10,997
Investment in funds ② 2,378 3,113Investment from subsidiaries ③ 490 396Valuation and translation adjustments ④ 176 1,181
Total ①+②+③+④ 18,514 15,687
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Cash Flows - Overview
・ Divestment of portfolio companies has progressed and cash flows provided by operating activities resulted in 525 million yen. Compared to 14/3(3Q), income before income taxes and minority interests was decreased and payment forpurchase of investment funds was increased. Cash flows provided by operating activities decreased 68% year-to-year basis.
・Cash flows provided by investing activities was 215 million yen mainly due to increase of proceeds from redemption of investment securities (16% decrease year-to-year basis).
・Cash provided by stock acquisition rights and repayments of loans resulted in use of 3,791 million yen in financing activities (1,424 million yen was used in 14/3(3Q))
・3,011 million yen decreased from Mar. 2014 in net cash flow.(FCAS)
(JPY million) 11/3 12/3 13/3 14/3 14/3(3Q) 15/3(3Q) Change(%)Operating CF 7,137 738 1,196 3,624 1,657 525 (68%)Investing CF 2,215 396 277 437 255 215 (16%)Financing CF (7,886) (4,056) (2,838) (1,424) (1,424) (3,791) -Change in CF 1,431 (2,948) (1,259) 2,758 562 (3,011) -Cash & Cash Equivalentsat End of Period 9,762 6,813 5,554 8,313 6,116 5,301 (13%)
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Investment Execution Case
Company name Execution date
Country Business
ExaScaler Inc. Nov ’14 Japan
The development, the production and the selling of the high efficiency & small-footprint super computing system and server system
Access Bright, Inc. Sep ‘14 JapanPublishing mobile game centering on smartphone in China
Plus One marketing Ltd. Sep ‘14 Japan Planning, developing and selling SIM free mobile tools
Shenyang RMS Medical Tech Co.,Ltd.
Sep ‘14Aug ‘14 China
Developing, producing and selling medical equipment(respiration equipment & oxygen generating equipment)
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Investment Execution Case
Company name Execution date
Country Business
iHeart Japan Corporation Sep ‘14 Japan
Innovative next-generation therapy that uses cardiovascular cells derived from human iPScell
Twenty Five Miles Limited Jul ‘14 China Operating free market mobile app “小交易” in China
KOYO ELECTRIC CORPORATION May ’14 Japan
ESCO business, mega-solar EPC business, service for energy saving, etc,
FANGDD NETWORK GROUP LTD May ‘14 China
Real –estate service centering on website,”房多多” for real estate agency
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8,423 6,290
6,849
5,140
1,578
700
3,354
2,685
317
357
993
832
579
470
2,050
1,301
1,715
1,602
0
10,000
20,000
30,000
14/3 15/3(3Q)
Others
Service
Retail・Restaurant
Construction・Real Estate・Financial RelatedConsumer Related
Machinery・Automobile Related
Material・Chemical Related
IT・Internet Related
QOL(Quality of life) Related14,933
10,859
9,756
8,025
1,161
492
10
4
0
10,000
20,000
30,000
14/3 15/3(3Q)
Others
Southeast Asia
Greater China
Japan
Note : Investments in funds managed by third parties and in which the JAIC Group is not involved in the management, are not included.
(Principal +Funds)
(¥ million)
Investment Portfolio Breakdown
◆By Area ◆By Industry
19,381
25,862
19,381
(¥ million)
25,862
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43
12
9
4 4
5
3
3
3
4
1
0
2
4
6
8
10
12
14
16
18
20
10/3 11/3 12/3 13/3 14/3 15/3(3Q)
No. of new IPOs (Overseas)
No. of new IPOs (Domestics)
JAIC-Backed IPOs
10/3 11/3 12/3 13/3 14/3 15/3(3Q)
Domestics 1.3 1.9 1.4 1.5 15.2 4.9
Overseas 1.6 0.6 1.9 3.4 2.2 1.8
Investment multiple by Initial price (First price multiple)
(number of IPO)
(Investment multiple)
Note1: IPOs include acquisition by listed company as a result of equity swap etc. (1 in 2010/3, 1 in 2011/3, 2 in 2014/3 and 2 in 2015/3(3Q)).2: First price multiple = Gross market capitalization at first price/Total our acquisition cost. However, the calculation of the first price multiple does not include the companies
whose shares are acquired by listed companies as a result of equity swaps etc.
(Principal + Funds)
9
6
15
12
8
5
9months
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JAICJapan Asia Investment Co., Ltd.
Seiko-Takebashi-Kyodo Bldg., 3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo 101-8570TEL +81-3-3259-8518 Fax +81-3-3259-8511
http://www.jaic-vc.co.jp/
Contact to:Tetsuro Shimomura, Executive Managing DirectorKenji Kishimoto, Administration GroupMiyuki Maruyama, Administration GroupIR e-mail : [email protected]
The contents of this document are based on materials available at the time of its compilation and no guarantee can be made as to the continued accuracy and reliability of the material. The contents may be changed without prior notice. Risks and uncertainties including changes to economic circumstances may cause results and projections to differ materially from those presented in the document. The information in this document is for presentational purposes only and is not an inducement to invest in securities issued by JAIC.The figures in this document is based on consolidated financial statements.