Komori
Earnings presentation8518Japan Asia Investment Company,LimitedFinancials (excluding banks)

Q2 supplementary earnings materials for the fiscal year ending March 2027 (previous consolidation basis)

In the second quarter of the fiscal year ending March 2027, operating revenue increased as the sale of shares progressed, while the deficit expanded substantially due to losses on the disposal and impairment of low-profitability assets. In response, the full-year forecast was revised downward to operating revenue of ¥1.35 billion and a net loss attributable to owners of the parent of ¥2.2 billion.

Worth reading
76Important
Scored from 5 of 6 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-17
¥100 million
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings summarySecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥930 millions+157.3%
Operating profit¥-1,618 millions
Ordinary income¥-1,637 millions
Net income¥-1,704 millions
Selling, general and administrative expenses¥653 millions
Full-year earnings forecast
Operating revenue
¥1,350 millions
Operating costs
¥2,100 millions
Gross operating profit
¥-750 millions
Selling, general and administrative expenses
¥1,350 millions
Operating profit
¥-2,100 millions
Ordinary income
¥-2,150 millions
Profit attributable to owners of the parent
¥-2,200 millions
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Operating revenue68.9%
Operating costs90.3%
Selling, general and administrative expenses48.4%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Significantly below plan from the start of the fiscal year
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Net profit attributable to owners of the parent in the same period of the previous year¥-166 millions
  • Gains on share sales¥160 millions
  • Losses associated with restructuring the business portfolio¥-1,307 millions
  • Other impairment losses and provisions¥-206 millions
  • Selling, general and administrative expenses¥-193 millions
  • Other¥7 millions
  • Current quarter¥-1,704 millions
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Forecast figures prepared based on certain assumptions, but specific numerical assumptions are not disclosed
New initiatives
  • Making JAIC Real Estate Development a wholly owned subsidiary
  • RS Group's investment in and collaboration with JAIC Asset Management
  • Entry into data center development
  • Acquisition and Cancellation of Stock Options
  • Investment in Smile-Link by Omiyage Fund No. 1
  • Investment in Ocean Co., Ltd. by the ONE-JAPAN Tourism Fund
  • Establishment of a joint venture with Funai Soken Holdings and plans to form a fund targeting the mobility industry
Key KPIsA metric the company considers important as a management benchmark.
  • Increase in AUM in the investment development business¥144 100 million
  • Increase in AUM in the investment management business¥60 100 million
  • AUA in the fund platform business¥2,789 100 million
  • Assets under fund management¥18,550 millions
  • PBR0.54 Times
  • ROELoss-making
  • ROALoss-making
Segment results
Investment and Development
Operating revenue
¥109 millions
Operating costs
¥1,141 millions
Gross operating profit
¥-1,032 millions
Investment management business
Operating revenue
¥734 millions
Operating costs
¥753 millions
Gross operating profit
¥-19 millions
Fund platform business
Operating revenue
¥86 millions
Operating costs
¥0 millions
Gross operating profit
¥86 millions
Medium-term management plan targets
Increase in AUM in the investment development business
Target value¥150 100 million
Target fiscal yearFiscal year ending March 2027
Increase in AUM in the investment management business
Target value¥300 100 million
Target fiscal yearFiscal year ending March 2027
AUA in the fund platform business
Target value¥4,000 100 million
Target fiscal yearFiscal year ending March 2027
Stable Earnings
Target value¥8 100 million
Target fiscal yearFiscal year ending March 2027
ROE
Target value12.7 %
Target fiscal yearFiscal year ending March 2027
Profit attributable to owners of the parent
Target value¥10 100 million
Target fiscal yearFiscal year ending March 2027
Financial targets
ROE
Target value12.7 %
Cost of capital
Target value13.4 %
Actual resultsROE: negative
Number of employees
Number of EmployeesStandalone: 24 / Consolidated: 47
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings summary
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥930 millions (YoY +157.3%)
Operating profit¥-1,618 millions
Ordinary income¥-1,637 millions
Net income¥-1,704 millions
Selling, general and administrative expenses¥653 millions
Full-year earnings forecastOperating revenue ¥1,350 millions / Operating costs ¥2,100 millions / Gross operating profit ¥-750 millions / Selling, general and administrative expenses ¥1,350 millions / Operating profit ¥-2,100 millions / Ordinary income ¥-2,150 millions / Profit attributable to owners of the parent ¥-2,200 millions
Progress against full-year forecastOperating revenue 68.9% / Operating costs 90.3% / Selling, general and administrative expenses 48.4% / Other Not disclosed
Self-assessment against the planSignificantly below plan from the start of the fiscal year
Segment resultsInvestment and Development Operating revenue ¥109 millions / Operating costs ¥1,141 millions / Gross operating profit ¥-1,032 millions / Investment management business Operating revenue ¥734 millions / Operating costs ¥753 millions / Gross operating profit ¥-19 millions / Fund platform business Operating revenue ¥86 millions / Operating costs ¥0 millions / Gross operating profit ¥86 millions
Breakdown of Factors Affecting the ChangeFactors Net profit attributable to owners of the parent in the same period of the previous year / Amount ¥-166 millions, Factors Gains on share sales / Amount ¥160 millions, Factors Losses associated with restructuring the business portfolio / Amount ¥-1,307 millions, Factors Other impairment losses and provisions / Amount ¥-206 millions, Factors Selling, general and administrative expenses / Amount ¥-193 millions, Factors Other / Amount ¥7 millions, Factors Current quarter / Amount ¥-1,704 millions
Key KPIsIndicator name Increase in AUM in the investment development business / Value ¥144 100 million / Year on year against the same period last year Not disclosed, Indicator name Increase in AUM in the investment management business / Value ¥60 100 million / Year on year against the same period last year Not disclosed, Indicator name AUA in the fund platform business / Value ¥2,789 100 million / Year on year against the same period last year Not disclosed, Indicator name Assets under fund management / Value ¥18,550 millions / Year on year against the same period last year Not disclosed, Indicator name PBR / Value 0.54 Times / Year on year against the same period last year Not disclosed, Indicator name ROE / Value Loss-making / Year on year against the same period last year Not disclosed, Indicator name ROA / Value Loss-making / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees Standalone: 24 / Consolidated: 47 / Changes and hiring plans during the period Not disclosed
Assumptions Underlying the Business OutlookForecast figures prepared based on certain assumptions, but specific numerical assumptions are not disclosed
Medium-term management plan targetsIncrease in AUM in the investment development business Target value ¥150 100 million / Target fiscal year Fiscal year ending March 2027 / Increase in AUM in the investment management business Target value ¥300 100 million / Target fiscal year Fiscal year ending March 2027 / AUA in the fund platform business Target value ¥4,000 100 million / Target fiscal year Fiscal year ending March 2027 / Stable Earnings Target value ¥8 100 million / Target fiscal year Fiscal year ending March 2027 / ROE Target value 12.7 % / Target fiscal year Fiscal year ending March 2027 / Profit attributable to owners of the parent Target value ¥10 100 million / Target fiscal year Fiscal year ending March 2027
Financial targetsROE Target value 12.7 % / Cost of capital Target value 13.4 % / Actual results ROE: negative
New initiativesMaking JAIC Real Estate Development a wholly owned subsidiary, RS Group's investment in and collaboration with JAIC Asset Management, Entry into data center development, Acquisition and Cancellation of Stock Options, Investment in Smile-Link by Omiyage Fund No. 1, Investment in Ocean Co., Ltd. by the ONE-JAPAN Tourism Fund, Establishment of a joint venture with Funai Soken Holdings and plans to form a fund targeting the mobility industry
Items this document does not state (13)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The reasons for the expanded deficit were losses on the monetisation of low-profitability assets associated with the restructuring of the business portfolio, impairment losses and provisions related to investee companies, and higher selling, general and administrative expenses resulting from the M&A conducted in the previous fiscal year. The reasons for the downward revision to the full-year forecast were losses related to the sale and recovery of low-profitability assets, lower-than-expected gains on the sale of shares, and a shortfall in the business expansion plan caused by delays in selling existing properties.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Q2 supplementary earnings materials for the fiscal year ending March 2027 (previous consolidation basis) | Japan Asia Investment Company,Limited (8518) timely disclosure | Komori