Innovation Network Corporation of Japan

CONFIDENTIAL

Innovation Network Corporation of Japan -

Mission as Public-private partnership -

November 13, 2017 © Innovation Network Corporation of Japan All Rights Reserved.

Overview Innovation Network Corporation of JAPAN (“INCJ”)

Investment Scheme

(@JPY110/US$)

 Launched in July 2009 with a 15-year lifetime  Established under the Law on Special Measures for Industrial Revitalization  Overall investment capacity of equivalent of US$19 bil.  Provides patient risk capital over the medium to long term; emphasis on

Govt. capital: US$2.6 bil.

Govt. capital: US$2.6 bil.

Govt. guarantee: US$16.4 bil.

Govt. guarantee: US$16.4 bil.

investment multiples and innovative potential  Uses third-party agent at investment due diligence  Co-invests with private companies and funds

Collaboration, cooperation

 Actively participates in governance of portfolio companies

Shareholders

Private Privateenterprises enterprises Private Privatefunds funds

Government of Japan (investment of US$2.6 bil.)

26 Corporations (total of US$0.1 bil.) In alphabetical order          

Asahi Kasei Corporation Canon Inc. Development Bank of Japan Inc. East Japan Railway Company General Electric Japan Holdings Limited Hitachi, Ltd. JGC Corporation JX Nippon Oil & Energy Corporation Marubeni Corporation Mitsubishi Chemical Holdings Corporation

      

Mitsubishi Corporation Mitsubishi Heavy Industries, Ltd. Mizuho Bank, Ltd. Osaka Gas Co., Ltd. Panasonic Corporation © Innovation Network Corporation of Japan All Rights Reserved.

Sharp Corporation The Shoko Chukin Bank, Ltd.

Private capital: US$0.1 bil.

Private capital: US$0.1 bil.

(26 companies & 2 individuals) (26 companies & 2 individuals)

Management resources, advice

Investment Large Large corporations corporations Technology, personnel

SMEs SMEs

Investment Ventures Ventures

Target Targetcompany company

Technology, personnel

Universities Universities

2

Our philosophy

Open innovation is the key to transforming Japanese industry for the future

Open innovation

Open innovation brings businesses, technologies and ideas together across organizational and industry boundaries. It is the key to tapping into Japan’s potential for growth.

INCJ Investment Policy Three main investment angles 1) Alignment with the long term needs of society • Address environmental and energy issues in Japan and worldwide • Help people live long, healthy lives • Boost the productivity of the national economy

2) Growth • Able to generate new added value • Likelihood of additional funding from private enterprises • Able to dispose of the acquired shares

3) Innovation • Concentrate and deploy cutting-edge base technologies • Gather management resources of enterprises such as venture companies, and utilize them • Technology focused business consolidation and integration • Utilize management resources other than those found in Japan

Creation of new added value beyond conventional boundaries of industry, corporation, product and market

© Innovation Network Corporation of Japan All Rights Reserved.

3

Executive management, Innovation Ne twork Committee

Chairman and CEO, Member of the Board, and the Innovation Network Committee Toshiyuki Shiga Prior Experience : April.1976 April.2000

Joined Nissan Motor Co., Ltd. Senior Vice President in charge of Overseas Sales Division No.1 (Asia, China, Oceania, Central and South America) April.2002 Senior Vice President in charge of General Overseas Market (GOM) Sales and Marketing Division April.2003 Senior Vice President Member of Executive Committee Chairman of Management Committee GOM April.2005 Chief Operating Officer June.2005 Representative Director, Chief Operating Officer Nov.2013 Representative Director, Vice Chairman June.2015 Member of the Board of Directors, Vice Chairman June.2015- Chairman and CEO Member of the Board at Innovation Network Corporation of Japan June 2017- Member of the Board at Nissan Motor Co., Ltd 2014-

Vice Chairman of the Keizai Doyukai (Japan Association of Corporate Executives)

Education: Mar.1976 Graduated from the Faculty of Economics, OSAKA Prefecture University

President and COO, Member of the Board, and the Innovation Network Committee Mikihide Katsumata

Executive management

Chief Strategy Officer, Member of the Board

Tetsuya Hamabe Chief Financial Officer, Member of the Board

Michio Saito Co-Chief Investment Officer, Member of the Board

Shigeyuki Tsuchida Co-Chief Investment Officer, Member of the Board

Tetsuro Toyoda Senior Executive Managing Director

Takeshi Sekine Executive Managing Director

Koichi Ashida

Prior Experience : April.1983

Joined Mizuho Corporate Bank, formerly known as The Industrial Bank of Japan, Limited

Aug.1999

Joined Merrill Lynch Japan Securities / Global Principal Investments, Director

April.2002

Founded Nippon Mirai Capital Co., Ltd. / Partner & Chief Financial Officer

April.2007

Founded New Frontier Capital Management Co., Ltd. / President and CEO

June.2010 President and CEO at Mobile Internet Capital, Inc. April.2015

Executive Managing Director

Nobuyuki Nakano Executive Managing Director

Daisuke Chiba

Senior Executive Managing Director at Innovation Network Corporation of Japan

June.2015- President and COO Member of the Board Education: Mar.1983

BA in International Affairs at University of Tokyo, College of Liberal Arts

May.1987

Master of Arts in Law and Diplomacy, Fletcher School of Law and Diplomacy, Tufts University, USA

Aug.2012

Stanford Executive Program, Stanford University Graduate School of Business, USA

Š Innovation Network Corporation of Japan All Rights Reserved.

4

Industry consolidation to foster strong gl obal players through PE investments

Š Innovation Network Corporation of Japan All Rights Reserved.

5

Investment portfolio Number of investments

Investment approved (cumulative) (Currency: JPY Bil.)

Total

122

(Currency: JPY Bil.)

Total

1,038.1 billion

Exit (incld. partial exit) ／ Total

38 ／ 122 as of the end of Oct. 2017 © Innovation Network Corporation of Japan All Rights Reserved.

6

Realized Exits and Performance Estimate

Realized Exits (37 transactions + LPS as of the end of Aug. 2017) JPY億円 Bil.

700

658.9

600 500

2.3 x

400 300

290.4

200

<

100 0

Investment Principal

Cumulative Recovery

実投資額

回収額

Performance Estimate 2,000

JPY Bil.

1,886

1,800 1,600 1,400

2.3 x

1,200 1,000 800

808

600

<

400 200 0

Total 累積投資額 Investment

© Innovation Network Corporation of Japan All Rights Reserved.

Estimated 推定Gross ValueRecovery 7

Cont’d: Early/ Growth and Consolidation/ Overseas

JPY Bil. 60

Early Early /Growth /Growth stage stage

Consolidation/ Consolidation/ Overseas Overseas

Realized Exits (25 transactions)

Realized Exits (12 transactions)

JPY Bil. 700

56.32

50

500

37.89

0. ７ x

40

20

2. ７ x

400

<

30

300

234.04

200

10 0

620.97

600

<

100

Investment Principal

0

Cumulative Recovery

実投資額

回収額

Investment Principal

Performance Estimate 177.2

JPY Bil. 180

Cumulative Recovery

実投資額

回収額

Performance Estimate 1708.8

JPY Bil. 1,800 1,600 1,400

160 152.6

2.6 x

1,200

1. ２ x

<

1,000 800

655

600

<

400 200 140

Total Investment 累積投資額

Est. Gross Recovery 推定 Value

© Innovation Network Corporation of Japan All Rights Reserved.

0

Total Investment 累積投資額

Est. Gross Recovery 推定 Value

8