summary of financial results for the first half of fy2017...

Summary of Financial Results for the First Half of FY2017 and Strategic Goals

Kasumigaseki Common Gate West Tower 34F3-2-1 Kasumigaseki, Chiyoda-ku Tokyo Japan http://www.jia-ltd.com

(Stock Code: 7172)

Japan Investment Adviser Co., Ltd.

http://www.jia-ltd.com/

P.2 - 6

P.7 - 11

P.12 - 15

P.16 - 19

P.20 - 24

P.25 - 27

P.28 - 30

P.31 - 35

Copyright © Japan Investment Adviser Co., Ltd. All rights reserved.

Contents

1. Company Overview

2. Performance Highlights

3. Financial Results for H1/FY2017

4. Earnings Forecast for FY2017 (full year)

5. Recent Activities

6. Shareholder Return

7. Growth Strategy

8. References

2

1. Company Overview

Corporate Philosophy


For clientsWe are dedicated to contributing to the prosperity of our corporate and individual clients by providing financial products and services that are backed by the support and trust of our clients.

For shareholders

We will contribute to the prosperity of our shareholders by increasing corporate value with an aim to achieve a steady but rapid growth on a sustainable basis.

For business partners

We aim to fulfill our social responsibility and achieve business growth together with our business partners empowered by their support and trust.

。 For JIA’s officers and employees

We will build a work environment to help each of our staff to develop professionalism and fully exercise their ability. We will foster an organization and a corporate culture that prioritize openness and creativity to encourage our staff to take on new challenges.

Our commitments for accomplishing this goal● ● ● ● ● ●

3

Company Name Japan Investment Adviser Co., Ltd.

Headquarters Kasumigaseki Common Gate West Tower 34F, 3-2-1 Kasumigaseki, Chiyoda-ku, Tokyo

Representative Naoto Shiraiwa, President and CEO

Established September 2006 (Fiscal Year-end: December 31)

Business Activities Financial solutions business, Media-related business

Paid-in Capital ¥4,532 million (Note: Changed due to capital increase as of August 23, 2017)

Listed Exchange Tokyo Stock Exchange – Mothers (Stock Code: 7172)

Full-time Officers and Employees 52 (Non-consolidated), 81 (Consolidated) (As of June 30, 2017)

Sales Offices Tokyo Headquarters, Western Japan Regional Office (Osaka)

Financial InstitutionsMizuho Bank, Ltd., Sumitomo Mitsui Bank Corporation, The Bank of Tokyo-Mitsubishi UFJ Ltd., Resona Bank, Limited, The Chiba Bank, Ltd., THE DAISHI BANK, LTD., and the other 44 banks (Note: Top six banks as of June 30, 2017)

Major Shareholders

Naoto Shiraiwa KODO Holdings Co., Ltd.The Master Trust Bank of Japan, Ltd. (Trust account) Japan Trustee Services Bank, Ltd. (Trust account) Japan Trustee Services Bank, Ltd. (Trust account No.9) Government of NorwayNote: Top six shareholders (75.32% shares) as of June 30, 2017

Major Group Companies

JP Lease Products & Services Co., Ltd. (Operating lease business)Nihon Securities Journal Inc. , Nihon Securities Journal Research Inc. (Media-related & IR support business)Finspire Inc. (Container leasing business; changed the name from CAIJ, Inc. in March 2017) Japan M&A Adviser Co., Ltd. (M&A advisory business)Arena Aviation Partners B.V. (Aircraft lease arrangement, lease management and aircraft resale businesses)Note: See “Group Companies” on page 34 for more details (as of August 31, 2017).

Auditor YUSEI Audit & Co.

Corporate Information

Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. 4

2006 Sep. Established Japan Investment Adviser Co., Ltd.

2007Jan. Established CAIJ, Inc. (currently Finspire Inc.) as a joint venture with CAI International, Inc. (Listed on New York Stock Exchange).

Feb. Started M&A advisory business.

2011 Aug. Established JP Lease Products & Services Co., Ltd.

2013 Dec. JP Lease Products & Services Co., Ltd. started operating lease business for maritime containers.

2014

May Formed and started selling Fund No. 1 related to the solar photovoltaic generation business.

Sep. Listed on the Mothers market of the Tokyo Stock Exchange.

Dec. Established the Investment Banking Division.

2015

Feb. Opened the Western Japan Regional Office (Osaka).

Aug. Started the private equity investment business. (First deal: NMP Specialist Inc.)

Sep. Acquired all shares of Nihon Securities Journal Inc. and Nihon Securities Journal Research Inc. Started media-related & IR support business.

Oct.Started the aircraft part-out & conversion business.Started the operating lease business for vessels.

Nov.Established JIA Luxembourg SARL. Entered into a capital & business alliance with ValliereAviation S.A. (currently Vallair Capital SAS). (Investment amount: Preferred shares €2.5M, about ¥325.3M)Introduced a shareholder incentive plan.

2016

Jan.Started the IPO consulting business.Established Japan M&A Adviser Co., Ltd.

Mar. Acquired all shares of CAIJ, Inc. (currently Finspire Inc.)

Apr. Completed new share issue and secondary offering.

Aug. Signed a memorandum of understanding with PCI Holdings, Inc. to form a business alliance in the field of Fintech

Sep. Made an additional investment in Vallair Capital SAS. (Investment amount: Preferred shares €2.5M, about ¥282.1M)

Nov. Selected as a margin trading issue on the Tokyo Stock Exchange.

Dec. Acquired shares of INTERTRADE Co., Ltd. (Number of shares acquired: 600,000 shares; shareholding ratio: 8.06% )

2017

Jan. Invested in Fits Yokohama inc. and signed to provide IPO consulting services (in Feb.)

Mar.Invested in TechnoPlan Inc.Made an additional investment in Vallair Capital SAS. (Investment amount: Preferred shares €2.5M, about ¥299.0M)

May Formed a joint venture named Iter Corporation.

Jun. Signed a memorandum of understanding to confirm an order for ten of Boeing 737 Max 8. (Total list price: about $1.12B, about ¥123.2B)

Jul.Resolved to acquire shares of Arena Aviation Partners B.V. (Number of shares acquired: 490 shares)Completed new share issue and secondary offering. (See “Recent Activities” on page 20 for more details.)

Corporate History


Three Core Lines of Business

Renewable Energy Business

Aircraft Part-Out & Conversion Business

M&A Advisory Business

Private Equity Investment Business

Media-related & IR Support Business

Human Resource Business

IT Business

Wealth Management Business

IPO Consulting Business

Real Estate Investment Business

Our Businesses


Business matching contractsAccounting firms in Japan

(Partner firms: 105)Financial institutions (regional banks, securities companies)

(Partner firms: 53)Total of 158 business partners

Operating Lease Business

6

2. Performance Highlights

7

(Millions of yen)

H1/FY2016 H1/FY2017YoY change

YoY change(%)

FY2017 forecast

% achieved against FY2017forecast

Consolidated results

Consolidated results

Net sales 2,353 3,256 903 38.4% 7,700 42.2%

Operating income 628 1,785 1,156 183.9% 3,700 48.2%

Ordinary income 417 1,577 1,160 278.0% 3,400 46.3%

Profit attributable to owners of parent

225 885 659 292.6% 2,100 42.1%

Total amount of equity sales

6,604 20,500 13,896 210.4% - -

Highlights for the First Half of FY2017

Solid growth in equity sales*, mainly for aircraft (up 210.4% year on year)

Achieved substantial year-on-year increases in sales and profits at all levels

Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. * Note: Transfer of equity interest in silent partnership as defined in Article 2, Paragraph 2-5 of the Financial Instruments and Exchange Act

8

Business Segment Summary


* Notes:1. This unit includes net sales of the part-out business in H1/FY2016 and those for the conversion business in H1/FY2017. Although sales decreased year on year due to the

difference in the sales recognition method (gross sales vs. net sales), profits increased about ¥262 million.2. Sales of other businesses decreased ¥22 million mainly because deals in the M&A advisory business were postponed to the second half. This business unit is expected to reach

the initial FY2017 forecast.3. Sales of this business unit were down mainly because of an ¥8 million sales decline at Nihon Securities Journal, but operating income in this unit was up ¥4 million.

Media-related

9

Operating Lease Business

M&A Advisory Business

Renewable Energy Business

Private Equity Investment Business

Wealth Management Business

Human Resource Business

Media-related & IR Support Business*3

Financial Solutions

Aircraft Part-Out & Conversion Business*1

Business segments Business unitsNet sales

(H1/FY2016 results)

Other Businesses*2

Net sales(H1/FY2017 results)

¥2,306 million

¥395 million

¥14 million

¥152 million

¥3,256 million

Change (%)

172.2%

40.5%

(61.7)%

(4.8)%

¥1,032 million

¥847 million

¥160 million

¥387 million¥276 million

¥37 million

¥2,353 million

(61.8)%

38.4%Total

Deals Structured and Sales of Major Businesses for H1/FY2017


Deals structured by type of asset Equity sales by type of asset

Note: All figures are for the first half of FY2017. Number of deals is the number of SPCs. 10

Aircraft Vessel Container boxSolar photovoltaic

generationTotal

H1/FY2016 H1/FY2017 H1/FY2016 H1/FY2017 H1/FY2016 H1/FY2017 H1/FY2016 H1/FY2017 H1/FY2016 H1/FY2017

Origination (Deals) 13 21 2 4 0 1 5 3 20 29

Total leased assets(Millions of yen)

46,177 53,441 6,115 7,847 0 722 3,430 3,107 55,722 65,118

Equity sales (Number of deals sold out) 1 17 1 1 1 1 5 3 8 22

Equity sales (Millions of yen) 854 16,587 1,026 1,026 1,744 722 2,980 2,164 6,604 20,500

854

16,587

1,026

1,026

1,744

722

2,980

2,164

0

5,000

10,000

15,000

20,000

H1/FY2016 H1/FY2017

Aircraft

Vessel

Container box

Solar photovoltaic generation

(Millions of yen)

46,177 53,441

6,115

7,847 722

3,430

3,107

0

20,000

40,000

60,000

80,000

H1/FY2016 H1/FY2017

Aircraft

Vessel

Container box

Solar photovoltaic generation

(Millions of yen)

Growth of the Sales Network (Business Matching Partners)

In the first half of FY2017, business matching contracts were executed with four accounting/tax accounting firms and five regional banks. At the end of the first half, there were matching agreements with 105 accounting/tax accounting firms, 45 regional banks and 8 securities companies, a total of 158 partners.

8 18 23

6788

101105

26

8

11

22

4045

1

6

7

88

0

20

40

60

80

100

120

140

160

180

End-FY2011 End-FY2012 End-FY2013 End-FY2014 End-FY2015 End-FY2016 H1/FY2017

Accounting/tax accounting firms Resional banks Securities companies

(Cumulative)

September 2014Listed on TSE Mothers

149

117

84

32

2410

158


3. Financial Results for H1/FY2017

12

Dec. 31,2016

Jun. 30, 2017

Change

Current assets 26,808 39,826 13,017

Cash and deposits 6,660 8,023 1,363

Accounts receivable - trade 3,040 2,863 (177)

Merchandise 1,344 394 (949)

Product investments 11,016 18,417 7,401

Costs on uncompleted services 318 482 163

Advance payments - trade 789 2,863 2,074

Advances paid 2,711 4,640 1,929

Other 928 2,141 1,212

Non-current assets 1,377 1,779 401

Property, plant and equipment 57 88 31

Intangible assets 56 43 (12)

Investments and other assets 1,263 1,646 382

Deferred assets 8 7 (1)

Total assets 28,195 41,613 13,418

* Notes:1. Down ¥949 million due to sale of ¥1,344 million of conversion business products and acquisition of ¥394 million of part-out business products.2. ¥18,417 million of silent partnership investments for 19 aircraft deals in the operating lease business; these investments ar e to be sold.3. All advance payments are made in the conversion business.4. Advances paid increased mainly because of increased activities to structure solar photovoltaic deals going forward.5. Increased mainly because of a ¥377 million increase in deposits for aircraft leases and a ¥604 million increase in short-term loans receivable for establishing container funds.6. Most loans are made for temporarily holding silent partnership investments. Loans increased because of growth in product investments resulting from the structuring of

many deals in the first half.


*2

*3

*4

*6*1

*5

13

H1/FY2017 Consolidated Balance Sheet Summary(Millions of yen)

Dec. 31,2016

Jun. 30, 2017

Change

Current liabilities 20,548 33,172 12,624Accounts payable - trade 8 7 (1)Accounts payable - operating 71 1,167 1,096Short-term loans payable 18,024 29,717 11,693Unearned revenue 883 1,074 191Income taxes payable 800 416 (383)Other 760 787 27

Non-current liabilities 890 908 18Total liabilities 21,438 34,081 12,643Shareholders' equity 6,640 7,452 811

Capital stock 2,061 2,061 0Capital surplus 2,003 2,003 0Retained earnings 2,775 3,587 812Treasury shares (199) (200) (1)

Total net assets 6,756 7,531 774Total liabilities and net assets 28,195 41,613 13,418


Notes:1. Part-out & conversion business includes the part-out business in H1/FY2016 and the conversion business in H1/FY2017. Due to the resulting change in the sales

recognition method, sales of this business decreased about ¥637 million and cost of sales decreased about ¥882 million from H1/FY2016. However, operating income increased about ¥262 million.

2. An increase in non-operating income was caused primarily by an increase of about ¥88 million in gains on sale of product investments due to an increase in product sales.

3. An increase in non-operating expenses was caused primarily by increases of about ¥42 million in interest expenses for loans from financial institutions and about ¥95 million in fees paid to financial institutions.

14

H1/FY2017 Consolidated Income Statement Summary Summary

H1/FY2016 H1/FY2017YoY

change YoY

change (%)FY2017 forecast

% achieved against FY2017

forecast

Net sales 2,353 3,256 903 38.4% 7,700 42.2%

Cost of sales 1,103 861 (242) (21.9)% 2,400 35.8%

Gross profit 1,249 2,395 1,146 91.7% 5,300 45.2%

SG&A 620 610 (10) (1.6)% 1,600 38.1%

Operating income 628 1,785 1,156 183.9% 3,700 48.2%

Non-operating income 35 169 134 382.1% - -

Non-operating expenses 246 377 130 52.8% - -

Ordinary income 417 1,577 1,160 278.0% 3,400 46.3%Profit attributable to owners of parent 225 885 659 292.6% 2,100 42.1%

*1

*2

*3

(Millions of yen)

Year on Year Comparison (FY2016 vs FY2017)

Net sales

Operating income

Ordinary income

Net income

992

1,566

1,361

1,690

727 2,833

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000

FY2016

FY2017

Q1Q2Q3Q4

340

901

271

884

1,854

0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500

FY2016

FY2017

Q1Q2Q3Q4

390 495

159 1,231

0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400

FY2016

FY2017

Q1Q2Q3Q4

280

712

67

865

1,893

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400

FY2016

FY2017

Q1Q2Q3Q4


FY2017 Consolidated Income Statement Summary(Millions of yen)

4. Earnings Forecast for FY2017(full year)

16

Earnings Forecast for FY2017 (full year)

1. Sales in the core operating lease business are expected to be strong thanks to a very high number of inquiries for these leases from both lessees and investors.

2. The renewable energy business has good prospects for further growth because a shift to products structured for attractive returns makes it possible to meet an even broader spectrum of client needs.

3. We expect strong profitability in the part-out & conversion business. We plan to make additional investment in Vallair Capital SAS to further improve earnings.

4. In addition to the three core businesses, we are also focusing on the M&A advisory business, private equity business, IT business (mainly fintech) and other businesses with a goal to achieve high levels of sales and earnings growth in the future.


Earnings Forecast for FY2017 (full year)

資金調達力の拡大、機動的な資金の確保Aiming to have another year of higher sales and profits and also to hit a new record high in profits through business expansion


(Millions of yen) FY2016 Results FY2017 ForecastYoY

ChangeYoY

Change (%)

Net sales 5,913 7,700 1,787 30.2%

Operating income 2,465 3,700 1,235 50.1%

Ordinary income 2,240 3,400 1,160 51.8%

Profit attributable to owners of parent 1,390 2,100 710 51.1%

Net income per share 118.15 yen 172.26 yen* 54.11 yen* -

* Note: These figures do not reflect the issue of new shares and the stock split.

5,913

7,700

2,465

3,700

1,390 2,100

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY2016 FY2017 (forecast)

Net sales

Operating profit

Net income

Forecast another year of higher sales and profits and a new record for profits

19

Five-year Financial Summary

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY2013 Results FY2014 Results FY2015 Results FY2016 Results FY2017 Forecast

5201,049

2,805

5,913

7,700

176 423764

1,390

2,100

(Millions of yen)

Net sales

Net income


5. Recent Activities

20

Recent Activities (1)

A New Investment in the Private Equity Investment Business

A New Initiative in the Renewable Energy Business

February 2017JIA acquired shares of Fits Yokohama inc. through a third-party allotment and signed to provide IPO consulting services.

TechnoPlan has revolutionary technologies for concentrating gas, removing water, fermenting methane and other actions by using biomass. These technologies allow renewing energy and producing valuable resources. These businesses were developed through a network of private, academic and public partnerships and it has received a subsidy from the Japanese central and local governments. TechnoPlan engages in this business as an energy service company (ESCO), a company that provides energy solutions and guarantees reductions in energy use and energy expenses.

TechnoPlan’s goal is contribute to society and expand its operations by increasing the use of technologies for the stable and economic development of renewable energy projects.

For children with special needs, Fits Yokohama operates a child development support business and provides daytime services for these children after school hours.

JIA and Fits Yokohama signed an IPO consulting agreement with the goal of conducting an initial public offering in the future. This investment will enable JIA to help solve social issues while continuing to grow.

March 2017JIA announced the acquisition of TechnoPlan shares through a third-party allotment.

21Copyright © Japan Investment Adviser Co., Ltd. All rights reserved.


Participation in Establishment of a Joint Venture

May 10, 2017JIA established a joint venture, named Iter Corporation.

Partner companies (IT companies)PCI/Keyware/INTERTRADE

Investors, limited partnerships or silent partnerships

JIA (Financial solutions business)

Provision of IT and other technological expertise and

other knowledge

(3) Investments and human resources

(1) Contract to form a joint venture

Joint venture Iter Corp.

Investment company (GP) function

Regional banks Institutional investors

(6) Investments

(4) Academic-industry tiesUniversities/

Research institutes (5) Technology introduction

Financial institutions, companies, others

(9) Sale of products

IT start-ups and others

(7) Business investments

(8) Technology introduction

(2) Establishment of joint venture

Provision of network of partners (financial

institutions and others)

(3) Investments and human resources

JIA established a joint venture with three other companies: PCI Holdings (TSE 1st section), Keyware Solutions (TSE 2nd section) and INTERTRADE (TSE 2nd section).

Iter will develop advanced data and communications technologies involving artificial intelligence, big data analysis and other fields. The company plans to use these technologies for solution products sold to financial institutions and institutional investors.

Iter plans to use business investments in technology companies in order to acquire new technologies and provide information to financial institutions and other organizations with an interest in this business sector.



Memorandum of Understanding Signed for Order of Boeing 737 MAX 8 Aircraft

June 20, 2017JIA signed a memorandum of understanding with Boeing for the purchase of ten of 737 MAX 8.

* Note: List price equals to the catalog price.

Total list price* is about $1,120 million (about ¥123.2 billion). This is JIA’s first direct purchase of new Boeing aircraft. The purchase will add a new aircraft model to the JIA Group’s aircraft assets and will help

significantly expand its operating lease asset portfolio.

Acquisition of Arena Aviation Partners

July 6, 2017JIA announced the decision to acquire shares of Arena Aviation Partners B.V., making this company a consolidated subsidiary.

The objectives of this acquisition are to give JIA a stable channel for new deals in the operating lease business and to diversify exit strategies for used aircraft.

JIA believes this acquisition will strengthen and enlarge its ability to perform comprehensive management of aircraft across theentire life cycle: locating attractive opportunities, managing aircraft, reselling aircraft after a lease ends, operating the part-out & conversion business for retired aircraft.


1. New share issue through public offering

(1)Type and No. of shares issued

1,070,000 shares of

common stock

(2) Issue price ¥4,260 per share

(3) Payment ¥4,017.17 per share

(4) Total payment ¥4,298,371 thousand

(5)Addition to capital stock

¥2,149,185 thousand

(6) Payment date July 25, 2017

2. Secondary offering through over-allotment 3. New share issue through third-party allotment

(1)Type and No. of shares

160,500 shares of

common stock

(2) Selling price ¥4,260 per share

(3) Total selling price ¥683,730 thousand

(4) Date of sale July 26, 2017

(1)Type and No. of shares issued (maximum)

160,500 shares of

common stock

(2) Payment ¥4,017.17 per share

(3)Total payment (maximum)

¥644,755 thousand

(4)Addition to capital (maximum)

¥322,377 thousand

(5) Payment date August 23, 2017

Summary of New Share Issues and Secondary Offering

Note: The number of shares to be sold through this third-party allotment will be the number of shares sold through the over-allotment, minus the number of shares used to return stock borrowed for price stabilization and syndicate cover transactions.


4. Total proceeds [Sum of 1 (4) and 3 (3)]

Up to about ¥4.9 billion

5. Use of proceeds

• Temporary advance payments in the operating lease business and renewable energy business

• Purchase of retired aircraft and parts and other activities in the part-out & conversion business


25

6. Shareholder Return

FY2017 Dividend Forecast


Our dividend policy is to aim for a consolidated payout ratio of at least 20% in the medium to long term

The basic policy of JIA for the profit distribution is to place priority on returning profits to shareholders by continuously paying a stable dividend. The dividend also takes into account the need for retaining earnings as required for funding future businessactivities and strengthening business operations.

JIA will conduct a 2-for-1 common stock split on September 1, 2017. The forecast of ¥5 for the FY2017 year-end dividend is therefore equivalent to ¥10 prior to this split, which is in effect ¥1 higher than the previous FY2017 year-end dividend forecast of ¥9.

Basic Policy for Shareholder Return (Dividend Policy)

Note:An announcement will be made promptly if a revision to the dividend forecast is needed to reflect any changes in results of operations. Payment of year-end dividend will require the approval of shareholders at the shareholders meeting.

Note: There is no revision to the forecast of ¥6 for the first-half dividend per share because this dividend is prior to the stock split.

26

Dividend per share (Before adjustment to reflect the stock split)

Record date End of Q2 (interim) End of year Annual

Revised forecast 6.00 yen 10.00 yen 16.00 yen

Previous forecast(announced on Feb. 8, 2017)

6.00 yen 9.00 yen 15.00 yen

Actual for FY2016 4.00 yen 6.00 yen 10.00 yen

(1) Eligible shareholders Perks are provided to all shareholders recorded in the shareholder register as of December 31

(2) Allocation date End of December (once each year)

(3) Gift QUO Card and free subscription of Nihon Securities Journal (Digital Version)

(4) Gift EligibilityThe number of sharesPeriod of less than one year100 or more and less than 2,000 shares QUO Card worth ¥1,000 + One-month free subscription ticket of Nihon

Securities Journal (Digital Version) worth ¥3,0002,000 shares or more QUO Card worth ¥3,000 + Three-month free subscription ticket of Nihon

Securities Journal (Digital Version) worth ¥9,000Period of one year to less than two years100 or more and less than 2,000 shares QUO Card worth ¥3,000 + Three-month free subscription ticket of Nihon

Securities Journal (Digital Version) worth ¥9,0002,000 shares or more QUO Card worth ¥5,000 + Six-month free subscription ticket of Nihon

Securities Journal (Digital Version) worth ¥18,000Period of two years or more100 or more and less than 2,000 shares QUO Card worth ¥5,000 + Three-month free subscription ticket of Nihon

Securities Journal (Digital Version) worth ¥9,0002,000 shares or more QUO Card worth ¥10,000 + Six-month free subscription ticket of Nihon

Securities Journal (Digital Version) worth ¥18,000Definition of continuous ownership period

A continuous ownership period is the time during which an investor holds JIA stock without any interruption. This is defined as the length of time JIA stock is held continuously starting on the day an investor is recorded in the shareholder register and ending on the record date (December 31 every year).

Descriptions of Shareholder IncentivesWe expanded the incentive plan for shareholders to encourage more shareholders to maintain their investment loyalty over the medium- tolong-term period. (Revisions made due to the stock split of September 1, 2017)

Shareholder Incentive Plan


28

7. Growth Strategy

1. Competitive products

3. High employee productivity

Ability to supply products that meet the needs of clients (investors).

Skills to develop virtually made-to-order products that match investors’ requirements for operating lease products and solar photovoltaic funds

Outstanding productivity of our workforce with operating income per employee of about ¥41 million. (as of December 31, 2016)

Our Strengths

2. Excellent growth potential

Aim for maintaining a high rate of growthNet income has grown eight-fold from ¥176 million in FY2013 to ¥1,390 million in FY2016.


Our Growth Strategy

1

2

3

Further strengthen the three core businesses (operating lease, renewable energy, part-out & conversion).

Expand the product lineup and services in order to provide the best possible financial solutions.(through operating a variety of businesses, such as the M&A advisory, private equity investment, IPO consulting, media-related & IR support and business continuity consulting businesses)

Aim for growth of IT and human resource services, where synergies with the financial solutions business are expected, and growth of new financial services (fintech) that utilize artificial intelligence.


31

8. References

120 152 159198

225

286

333

378

37 31 19

23

63

51

52

54

810 15

20

23

32

25

28

0

50

100

150

200

250

300

350

400

450

500

Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2017(Estimates)

Fiscal 2018(Forecast)

Aircraft Vessel Container box

311

241

194

410

194166

371

460

Market Size of Operating Lease Business

Estimate of the Market Size of Operating Lease Business(Billions of yen)

Notes: 1. Market size is based on total investments.2. The figures for Fiscal 2017 are estimates and those for Fiscal 2018 are forecast.3. Total figure may not match the sum of individual items due to rounding down. Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. 32

Market Size (predicted by JIA based on data sourced from Yano Research Institute Ltd.)[April 3, 2017 publication]

Aircraft Part-Out & Conversion Business

Fiscal year FY2014 FY2015 FY2016 FY2017 (forecast)

Net sales (Thousands of euros) 26,264 43,224 104,385 114,536

Operating income (Thousands of euros) 1,811 3,385 5,604 8,852

Ordinary income (Thousands of euros) 1,774 2,861 4,869 8,552

Net income (Thousands of euros) 1,644 1,954 3,377 6,243

Three-year Financial Highlights and Forecast

Name Vallair Capital SAS (formerly ValliereAviationS.A)

Location Châteauroux, France

Representative GrégoireLebigot, President& CEO

Line of business Part-out & conversion business for aircraft

Established November 27, 2007

Amount and ratio of investment€7.5 million (conversion of acquisition cost: ¥906.4 million)

Ownership of common stock: 30%A parts out & conversion

business site at Vallair

Use the capital and business alliance with Vallair Capital SAS to maximize synergies with current business operations

• The part-out business involves taking apart retired aircraft, managing inventories of various parts, and selling these parts to clients (aircraft maintenance companies, leasing companies, airlines and others) around the world.

• The conversion business involves remodeling and recycling old passenger aircraft for cargo and other uses.From the standpoint of the total management of the aircraft life cycle as well, the conversion business, through the use of highlyspecialized skills, has the potential to allow portfolio management with greater safety as well as to generate strong earnings.



Group Companies

Name Location Capital (Thousands of yen)

Main line of businessShare of

voting rights (%)

Consolidated subsidiaries

JP Lease Products & Services Co., Ltd. Chiyoda-ku, Tokyo 50,000Operating lease business for aircrafts, maritime container boxes and vessels

100.0

JPO No.1 Co., Ltd. Chiyoda-ku, Tokyo 300 Parts out & conversion business 100.0

JIA Luxembourg Inc. Luxembourg 1,000,000 euros Investment business 100.0

JPE No.1 Co., Ltd. Chiyoda-ku, Tokyo 300 Investment business 100.0

BF TEC Co., Ltd. Osaka-shi, Osaka 38,700 Renewable energy business 91.2

Nihon Securities Journal Inc. Chuo-ku, Tokyo 4,500 Media-related business 100.0

Nihon Securities Journal Research Inc. Chuo-ku, Tokyo 10,000 Media-related business 100.0

Finspire Inc. Minato-ku, Tokyo 50,000Operating lease business for maritime container boxes

100.0

Japan M&A Adviser Co.,Ltd. Chuo-ku, Osaka 30,000 M&A advisory and associated businesses 100.0

Arena Aviation Partners B.V. Netherlands 100 eurosAircraft lease arrangementLease managementAircraft resale business

49.0

Associates accounted for using the equity method

Asuka Green Investment Co., Ltd. Minato-ku, Tokyo 30,000 Renewable energy business 50.0

Fuji Eco Technos Co., Ltd. Higashisumiyoshi-ku, Osaka 12,505 Renewable energy business 46.7

Vallair Capital SAS France 13,793,000 euros Parts out & conversion business 30.0

Iter Corporation Chiyoda-ku, Tokyo 100,000 Fintech business 37.0

Investor Briefings in 2017


Events held

Events planned

35

Feb.1423

Investor Briefings for Institutional Investors in Tokyo, hosted by The Securities Analysts Association of JapanInvestor Briefings for Individual Investors in Niigata, hosted by Daiwa Securities

Mar. 21 Investor Briefings for Individual Investors in Tokyo, hosted by SMBC Friend Securities

Apr.67

Investor Briefings for Individual Investors in Osaka, hosted by Nihon Securities Journal ResearchInvestor Briefings for Individual Investors in Hiroshima, hosted by Hirogin Securities

May 12 Investor Briefings for Individual Investors in Sendai, hosted by Mizuho Securities

Aug. 3 Investor Briefings for Institutional Investors in Tokyo, hosted by The Securities Analysts Association of Japan

Aug. 22-23 Investor Briefings for Overseas Institutional Investors in Singapore, hosted by Nihon Securities Journal Research

Sep.5

12Investor Briefings for Institutional Investors in Tokyo, hosted by Mizuho SecuritiesInvestor Briefings for Institutional Investors in Tokyo, hosted by Daiwa Securities

Nov. 24 Investor Briefings for Individual Investors in Fukuoka, hosted by Mizuho Securities

Please contact us with any questions or comments about our stock and other subjects involving a JIA investment.

[email protected]

or call the JIA’s IR Desk at +81-3-6804-6805.

We may reply to you in writing, and it may take some time to respond to your inquiries. Please note that we will respond on or after the following business day if your inquiries are received on weekends, holidays, or the year-end and New Year holidays.

Personal Information

Personal information (names, addresses, phone numbers and e-mail addresses) about clients that is sent to the IR e-mail address will be used only to respond to questions or other inquiries or to send materials requested. This information will not be used for any other purposes.


Disclaimer

Industry trends and analysis, business outlooks, strategies, and other forward looking statements in this presentation are based on information available to the management of JIA when this presentation was prepared. The operating environment in the future may differ significantly from the current environment for a variety of reasons. As a result, next-stage strategies, results of operations and other items may differ from the information in this presentation.

IR Contact

mailto:[email protected]

summary of financial results for the first half of fy2017...

Documents