We will remain your best partner over 100 years
We are a comprehensive asset consulting firm that protects your assets and future.

Explanatory Materials for
Financial Results for the Six Months Ended June 30, 2024
Fiscal Year Ending December 31, 2024

Securities Code ：8929
Aoyama Zaisan Networks Co., Ltd.
August 8, 2024
© 2024 Aoyama Zaisan Networks GroupTOPICS Changes in Shareholder Return Policy after 2Q in the Fiscal Year Ending
December 31, 2024

① Introduction of Progressive Dividend Policy (Refer to p.20)② Expansion of Shareholder Benefit Schemes (Refer to p.22)© 2024 Aoyama Zaisan Networks Group1

The ideal way of doing business Aoyama Zaisan Networks is aiming for:“To be a leading expert on the business for the wealthy”
Clients

Consultants

Long-term

trusting relationship

Wealthy people who own
land

Business owners
Financial asset owners

Wealth advisors who provide advice on a holistic view of various assets.
Client partners who can consult more than anyone else and help clients solve their problems.

© 2024 Aoyama Zaisan Networks Group2

Contents

1

Financial Results for the Six Months Ended June 30, 2024

２ Shareholder Return Policy
3

Appendix© 2024 Aoyama Zaisan Networks Group3

Section 1

Financial Results for the Six Months Ended June 30, 2024
 Highlights of Consolidated Financial Results
 Actual PL ー In Case of Adopting the Net Amount Method
 Breakdown of Changes in Operating Profit
 Changes in Gross profits of Asset Consulting and Real EstateTransactions
 Changes in Net Sales of Asset Consulting
 Net Sales by Segment
 BS Highlights

Highlights of Consolidated Financial Results

・Both asset consulting and real estate transactions steadily
increased, and profits at all levels significantly increased.
Unit：Million yen© 2024 Aoyama Zaisan Networks Group5

Five-Year Changes in Consolidated Financial Results

Unit: Million yen© 2024 Aoyama Zaisan Networks Group6

Actual PL — In the Case of Adopting the Net Amount Method

Maintaining actual high level operating profit ratio

For accounting purposes, net sales of real estate transactions such as those of ADVANTAGE CLUB are generally
presented as a total amount.
However, our PL based on our actual situation is as shown in the table below, and we are profitable as a consulting firm.
We believe that this disclosure of actual conditions will provide useful information for investors.
Unit: Million yen* Net sales were calculated by netting the net sales related to real estate purchases and sales out of the net sales for accounting purposes (Cost of sales related to real estate purchases are offset against net sales)
Cost of sales was calculated by deducting cost of sales related to real estate purchases and personnel costs recorded in cost of sales from the accounting cost of sales.
© 2024 Aoyama Zaisan Networks Group7

(Reference) Explanation of the Case for Adopting the Net Actual PL Method
Presented on the Previous Page

For accounting purposes, there are two methods of presenting sales of real estate transactions: gross or net. Actual PL is presented when the net
method is used, where sales represent the difference between property sales and the cost of property purchases. In addition, our personnel costs areincluded in both cost of sales and SG&A expenses, but are shown as SG&A expenses in the actual PL to make them easier to understand. As
mentioned above, the Company uses the gross amount method in its disclosures, but uses the net amount method for internal administrative purposes.
Unit: Million yen*The following reclassifications were made from the accounting PL to the actual PL.
・Real estate transaction sales of 17,027 million yen and real estate purchase costs of 15,304 million yen included in cost of sales of 17,650 million yen were offset.
・Personnel costs were included in the cost of sales and selling, general and administrative expenses in the accounting PL. In the actual PL, personnel costs of 1,344 million yen included in the costof sales were included in selling, general and administrative expenses.
As a result, net sales were deducted from the accounting PL by 15,304 million yen, resulting in the actual PL of 5,690 million yen.
In addition, the cost of sales was deducted from the real estate purchase cost of 15,304 million yen and personnel costs of 1,344 million yen, resulting in the actual PL of 1,001 million yen.
Selling, general and administrative expenses added 1,344 million yen in personnel costs included in cost of sales, and amounted to 2,948 million yen in the actual PL.
For operating profit, both the accounting PL and actual PL were the same.
© 2024 Aoyama Zaisan Networks Group8

Breakdown of Changes in Operating Profit• Significant increase in gross profit (excluding personnel costs) due tosignificant increase in sales of high-margin asset consulting services.

Uni: Million yen

Increase inpersonnel expenses Increase in selling, general▲235

and administrative expenses（excluding personnel
expenses▲101

Increase in gross profit(excluding personnel expenses )

1,740

+974

1,102

FY2023Q2

FY2024
Q2© 2024 Aoyama Zaisan Networks Group9

Changes in Gross Profits of Asset Consulting and Real Estate Transactions■ Asset consulting
Unit: Million yen

1,880■ Real estate transactions
Unit: Million yen

1,463© 2024 Aoyama Zaisan Networks Group10Changes in Asset Consulting Sales
Sales were significantly higher than the previous year due to a significant increase in businesssuccession and product composition sales.
Unit: Million yen
5,000
4,500

3,967

4,000
3,500

3,327

3,000

677

2,500
2,000

1,214

2,981
597
1,024

1,500
1,000
500

2,838
916

2,921
616
470

1,359

1,197

FY20202Q

FY2021
2Q

FY2022
2Q

963

1,893
347

724

1,436

1,027

1,834

702

1,976

843

0
FY20232Q

FY20241Q

FY2024
2Q

Asset succession
Business successio

Product composi© 2024 Aoyama Zaisan Networks Group11

Financial Results by Sales Category
Asset Consulting

Real Estate Transactions

Sales from asset succession consulting for individual asset owners,
business succession consulting for business owners, and sales fromconsulting on the development of proprietary products to manageand operate clients' assets are recorded in asset consulting.

As part of asset consulting, the Company purchases real estate anddevelops products related to real estate for the purpose of meeting theasset management needs of its clients, and includes the sales of suchproducts in real estate transactions. Rental income from real estateholdings is also recorded.

Unit：Million yen© 2024 Aoyama Zaisan Networks Group12

Asset Succession (for Individual Asset Owners)）
Unit: Million yen
2,500

1,976

2,000

1,500

1,834

1,436

 Sales increased in line with the increase in thenumber of customers, which led to a year-on-yearincrease in the number of contracts signed.

1,359
1,197

1,000

843

500

0

FY20202Q

FY2021
2Q

FY20222Q

FY20232Q

FY20241Q

FY20242Q© 2024 Aoyama Zaisan Networks Group13

Business Succession (for Business Owners)

Unit: Million yen

Succession to the family line As in Q1, sales declined due to a decrease in large
spot projects, although the number of projects
increased year-on-year.

1,400
1,200

1,214
1,024

1,000
800

963
13

796

426

724

12

176

600

263

200

647

470

95

247

400

0

702

8
37

Business succession fund (Discontinuation of business)

579

423

302

154
FY20202Q

110
FY2021
2Q

FY2022
2Q

Succession to the family line

 Sales increased significantly due to the closing ofseveral large projects in Q1, as well as several
more in Q2.

 Two investment returns are expected this year.

453

349

M&A (Third-party succession)

FY20232Q

M&A

FY20241Q

FY2024
2Q

Business succession fund

 There has been a significant increase in thenumber of projects from local banks and a
growing need for business succession funds.
However, the revenue from these closings will
not be taken up until the following year.
© 2024 Aoyama Zaisan Networks Group14

Product Composition, etc.
Unit: Million yen
1,200

AD Composition (commission fees at the time of AD composition)

1,000

1,027

 It was significantly higher than in the previous year
due to an increase in the amount of ADVANTAGE
CLUB compositions.

361

AD Dissolution (commission fees at the time of dissolution)

916

800

271

677

600

616

597

Other

285

273

347
327

81

200

172

476

FY2021
2Q

AD Composition

 Management fees for the period increased due toan increase in the balance of ADVANTAGE CLUBcompositions.

175

109
FY2020
2Q

468

330

242

0

198

168

239

400

 The increase in sales was recorded as a result of
two dissolutions in the first half of the year.

FY2022
2Q

AD Dissolution

FY20232Q

FY20241Q

FY20242Q

Other© 2024 Aoyama Zaisan Networks Group15

Changes in Number of Consultants and Clients

Unit: No. of persons

2,780

No. of consultants
No. of clients

2,883

2,377

1,752

1,823

1,905

2,076

1,398

735
97

2014

847

102

2015

967

120

2016

134

2017

148

2018

167

2019

170

2020

183

2021

203

2022

211

2023

221

2024.2Q© 2024 Aoyama Zaisan Networks Group16

Real Estate Transactions
Unit: Million yen
20,00018,00017,39317,0271,886

16,0001,920

14,00012,00011,118430

10,000
8,000

8,937
1,125

6,136

2,000
0

15,106

10,687

2,337

・Feb. AD Kudan Chidorigafuchi

2.82 billion yen

・Mar. AD Hamamatsucho

2.78 billion yen

・Apr. AD Kojimachi

2.76 billion yen

・May AD Iidabashi Ekimae

2.26 billion yen

・Jun. AD Shibuya Scramble Crossing 1st 4.46 billion yen

Other real estate transactions

7,812
5,610

 Rental income is recorded for the provision ofproperties other than ADVANTAGE CLUB andwhen the properties were owned.

3,799

FY20202Q

 Sales increased significantly due to a significant
increase in the previous year‘s composition value.
The results for this period were as follows.

1,797

6,000
4,000

7,407

15,507ADVANTAGE CLUB (Real estate transactions)

FY2021
2Q

ADVANTAGE CLUBFY20222Q

FY20232Q

FY20241Q

FY2024
2Q

Other real estate transactions© 2024 Aoyama Zaisan Networks Group17

BS Highlights (Financial Strategies)[Basic policy]
The level of cash and cash equivalents is always maintained in the case of any economic or other risks. (However, the DOE target is set at the 10% level
and the dividend continues to exceed the cost of capital of approximately 8%). Surplus funds will be actively allocated to growth investments such as
M&A, investment in human resources and investment in systems such as DX and AI from FY2024.
[Inventory policy for properties for sale] The composition of ADVANTAGE CLUB will be expanded, but the policy of completing the recruitment
process in advance and composition ADVANTAGE CLUB on the same day as the purchase and settlement of the property, and the Company continues
to follow a policy of no real estate inventory holding. There is no impact from interest rate hikes as the policy is to hold no real estate inventory.

*Although there has been a temporary increase in real estate for sale and interest-bearing debt, two properties for sale were sold during Julyand interest-bearing debt of 4.35 billion yen was repaid.

Total assets 23,491 million yen

Total assets 25,839 million yen
Interest-bearing liabilities
1,909
Residual borrowing period
11 yearsInterest-bearing liabilities
1,990
Residual borrowing period
12 years

Other than the above
Interest-bearing
liabilities
6,181

Cash and deposits
14,696

Cash and deposits
16,571Other liabilities
5,390

Other liabilities
5,734（ of which, the security deposit is2,828）（ of which, the security deposit is2,595）

Real estate for sale 1,677
Real estate for rent
2,171
Other assets 4,945

Net assets 9,584（ Equity ratio 40.4%）

End of FY2023

Other than the above
Interest-bearing
liabilities
8,220

Real estate for sale 4,963

Net assets 10,318（ Equity ratio 39.7%）

Other assets 4,304

End of FY2024 Q2© 2024 Aoyama Zaisan Networks Group18

Section 2

Shareholder Return Policy

Changes in Shareholder Return Policy ①Introduction of Progressive Dividend Policy
１

Dividend payout ratio of 50% or more

２

Introduction of progressive dividend policy*

３

Maintaining DOE level above cost of equity
The cost of equity is estimated to be approximately 8% based on dialogues with investors.

FY2020

FY2021

FY20223-year average

TargetDividend payout ratio

80.3%

45.7%

50.1%

58.7%

50% level

DOE

10.2%

10.1%

11.0%

10.4%

10% level*”Progressive dividend policy” refer to a dividend policy whereby, in principle, dividends are not reduced, but
are maintained or increased.
The Company has increased its dividend for 13 consecutive years since FY2011 and intends to continue to do sogoing forward.
In order to make it clear that the actual results will continue, the progressive dividend policy has been introduced.
For details, please see the “Notice of Changes in Dividend Policy (Introduction of Progressive Dividend Policy)”disclosed today.
© 2024 Aoyama Zaisan Networks Group20

Changes in Dividends

Dividends have already increased for 13 consecutive years.
We are aiming to increase dividends for（Unit : yen)

3.0

41.0 yen

46.0 yen

35.0 yen"14 consecutive years" this fiscal year.
28.0 yen25.0 yen

26.5 yen

26.0
22.0

2.5
19.5 yen

16.5
15.0 yen

Year-end dividendInterim dividend
7.5 yen

5.0
2.5

3.25

3.75

2010

2011

2012

31.5%

86.1%

Dividend
payout ratio 64.1%

5.0

17.0

14.0
12.5

11.5 yen

Commemorative dividend

9.5

9.0 yen

7.5
6.5
4.0

28.0

5.5

7.0

8.5

10.0

11.0

13.0

2.5

2.5

2013

2014

2015

2016

2017

2018

2019

2020

2021

54.0%

48.4%

40.7%

46.2%

45.0%

38.3%

35.7%

80.3%

45.7% 50.1%

2022

15.0

18.0

2023

2024

48.3%

50.1%

※ On September 1, 2021, a stock split (two-for-one stock split) was implemented, and the dividend amount was replaced by a dividend amount that takes the split into account.
© 2024 Aoyama Zaisan Networks Group21

Changes in Shareholder Return Policy ②Expansion of Shareholder Benefit Schemes
Shareholder benefit for shareholders at the end of June
No. of shares owned

Details of special offers

More thanGifts worth 3,000 yen

2,000 sharesor choose 1 item out of donated 2 items※ Conceptual image

In addition

Continuously owning ∎10,000 sharesfor at least 2 years

Common meal vouchers for Ukai Groupor Ukai special beef

Each worth 20,000 yen*Conceptual image

Shareholder benefit for shareholders at the end of December
Details of special offers

No. of shares owned

Newly owned
more than 1,000 shares
In addition

QUO card worth 2,000 yen*For more information, please see the “Notice of Changes(Expansion) in the Shareholder Benefit Schemes” disclosed
today.

∎ Common meal vouchers for Ukai GroupUkai special beef or

Owning more than ∎ Vouchers to use facilities of Ukai Group
30,000 shares
Each worth 30,000 yenor* Conceptual image© 2024 Aoyama Zaisan Networks Group22

Section 3

AppendixCompany Overview
Company Profile
Trade name

Aoyama Zaisan Networks Co., Ltd.

Listed market

Tokyo Stock Exchange Market Standard（Securities Code ：8929）

Head Office

3F Aoyama Tower Place, 8-4-14 Akasaka, Minato-ku Tokyo 107-0052
Tel: +81-3-6439-5800 (Main)

Incorporated

September 17, 1991

Capital1,235,170,489 yen ※as of June 30, 2024

No. ofemployees

318(Group) ※as of June 30, 2024

Business line

Comprehensive individual asset consulting
Business succession consulting
Real estate solutions consulting∎ Listed company specializing in asset consulting and business succession consulting

Majorcharacteristics∎ A group of more than 150 professionals from the real estate industry and financial institutions,
including tax accountants, certified public accountants, and lawyers∎ It has strengths in equity and shareholder solutions and real estate solutions© 2024 Aoyama Zaisan Networks Group24

Corporate History
History of the Company
1990s

2000s

1999

Sep. Funai Zaisan Dock Inc was established as a group company of Funai Research Institute Co., Ltd.
Apr. It changed its name to Funai Zaisan Consultants Co., Ltd.

2002

May

ADVANTAGE CLUB started

Jul.

Listed on the Mothers market of the Tokyo Stock Exchange

1991

2004
2008

Oct. Management integration of Progest Holdings Co., Ltd.

2011

Jan. Established Aoyama Wealth Management Pte. Ltd.

2012

Jul. Funai Zaisan Consultants, Co., Ltd. changed its name to Aoyama Zaisan Networks Co., Ltd.

2013

Oct. Management integration of Japan Asset Research Institute Co., Ltd.
May Market was changed to the Second Section of the Tokyo Stock Exchange.

2015
2016

2010s
2017
2019

Jan. Shinsei Aoyama Partners (joint venture with Shinsei Bank, Ltd.) was established.
Aug. Established Business Succession Navigator Inc. as a joint venture with Japan M&A Center Inc.
(currently Next Navi Co., Ltd.)May PT Aoyama Zaisan Networks INDONESIA was established in the Republic of Indonesia
Oct. Completed construction of "Komatsu A×Z Square," the first project for regional development

Feb. Formed capital and business alliance with Capital Asset Planning Co., Ltd.
Dec. Aoyama Zaisan Networks Kyushu Co., Ltd. established as a joint venture with HAC Group and Shinohara

CPA Office Group.

2020s

2020

Sep. Appointed Chairman of the Council of Real Estate Specified Joint Enterprises
Oct. Established Aoyama Financial Service Co., Ltd.

2021

Jan.

2021
2022

Established Aoyama Family Office Service Co., Ltd.

Sep. The 30th anniversary of establishment
Completed construction of TSURUGA POLT SQUARE otta, the second project for regionalAug.
development© 2024 Aoyama Zaisan Networks Group25

Management Objectives and Business Description
Management
objectives
Business
description

Client types

Contributing to the happiness of our clients through the succession,
operation, and management of their assets
Consultation on achieving optimal asset composition and maximizing cash flow

〈 Comprehensive Asset consulting 〉

Individual asset owners(Landowners and financiers)

Business owners(Managers)

Average assets: 1 billion yen

Solutions∎ Inheritance measures∎ Effective use of real estate∎ Extensive land utilization∎ Real estate purchase and selling,etc.

∎ Business succession (Successor support）∎ M&A∎ Support for changing or closing a business∎ Financial improvement and growthstrategies, etc.

∎ ADVANTAGE CLUB, regional development projects and overseas asset management,
Financial product consulting by IFA*
*Provided by Aoyama Financial Service Co., Ltd. (Kinchu) No. 939, a group company© 2024 Aoyama Zaisan Networks Group26

Business for Individual Asset Owners
Problem Solving
Solutions

1st yearWishing to makeeffective use ofland

Compensation forproblem solving

3rd yearWishing torecombine myassetsOptimal asset structure
for each stage of life

Consulting by building
ongoing connections

Individual asset
owner
1Xth year

Having trouble
with inheritancedivision

No. of individual asset clients
Ongoing support
through advisory
contracts

Approx. 2,300

Monthly advisory
contract fee© 2023 Aoyama Zaisan Networks Group27

Business for Business Owners
Problem Solving
Solutions

1st year
Having trouble withstock consolidationor businesssuccession policy

Compensation forproblem solving

3rd yearby resolving issues such as
business succession and asset
management at the mostappropriate time for our clients

Having trouble
with growthstrategy
Businessowner

1Xth year
Having trouble withmanaging financial
assets obtained
through M&A.

Monthly advisory
contract fee

Long-term ongoing
consulting

No. of business owner clients
Ongoing support
through advisory
contracts

approx. 500 persons© 2024 Aoyama Zaisan Networks Group28

Features of the Business Model

Solving clients’ problems and building long-term relationships

Current generation

Individual
asset owners

Succession, operation andBusiness management of assets,
Business succession

ownersNest generation

The generation after next

Succession, operation andmanagement of assets,,
Business succession

The business model that generates profit
over the long termby consulting from the current generation to the next and beyond© 2024 Aoyama Zaisan Networks Group29

Net Sales and Operating Profit after Listing（Operating profit: Million yen）

（Net sales: Million yen）

35,000Sublease, other

Resale of real estate

Asset consulting
Since listing, revenues andprofits have increased due
to aggressive real estate
sales

Operating profit

25,000〈Advantage Club〉
3,500

Significant losses wererecorded on real estate
inventories due todeteriorating real estatemarket conditions

30,000Consulting real estate transactions

3,000

Policy of not acquiring
real estate for resale.
Shift to financially soundmanagement

2,500

20,0002,000

15,0001,500

10,000

1,000

5,000

500

0

0

06年

07年

08年

09年

10年

11年

12年

13年

14年

15年

16年

17年

18年

19年

20年

21年

22年

23年

-4,000© 2024 Aoyama Zaisan Networks Group30

Changes in ROE and ROIC
ROE

Target: 20% level or higher

ROIC

Target: 10% level or higher
ROE

35.0%

ROIC

31.1%

30.0%
22.0%

25.0%

22.0%

23.2%

20.0%
15.0%

13.0%

12.7%

8.0%

10.0%

12.2%

12.9%

2022年度FY2022

2023年度FY2023

10.0%

5.0%
0.0%
2019年度FY20192020年度FY20202021年度FY202１© 2024 Aoyama Zaisan Networks Group31

Changes in number of clients, asset consulting sales, and sales per client
Sales per client

2.50 - 3.30 million yen

Average

Sales perclient3,333(Unit: thousand yen)

2,793

3,230

2,810

2,802

3,052

3,048
2,671

2,610

2,547

7,082

5,564

5,806

6,204
5,545

4,909

Sales ofasset
consulting(Unit: Million yen)

No. ofclients

3,928
2,780

3,123
2,450

2,366

967

847

735

1,752

1,398

2,377

2,076

1,905

1,823

(Unit: persons)
End of FY2014

End of FY2015

End of FY2016

End of FY2017

End of FY2018

End of FY2019

End of FY2020

End of FY2021

End of FY2022

End of FY2023

End of FY2024

End of FY2014 End of 2015 End of FY2016 End of FY2017 End of FY2018 End of FY2019End of FY2020 End of FY2021 End of FY2022 End of FY2023 End of FY2024(Planned)© 2024 Aoyama Zaisan Networks Group32

ADVANTAGE CLUB’s Composition Results Market share 46%※ Cumulative amount of composition 156.8 billion yen (As of the end of June 2024)

POINT※Share of cumulative amount of compositions in voluntary partnership type under the Real Estate Specified Joint Enterprises Act. （As of the end of December 2023)

 The average return, including dividends and gains on sales, has remained steady at
6% per annum (actual results), making it an extremely competitive investment product.
288

284.9

(Unit: 100 million yen)

244.4

162.5

92.8
33.8

FY201452.7

55.7

FY2015FY201642.5

FY201765.2

FY201853

FY2019FY2020

FY2021

FY2022

FY2023

FY2024（Forecast）© 2024 Aoyama Zaisan Networks Group33

Cooperation with Financial Institutions and Accounting Firms （As of the End of June 2024)
 We signed business matching agreements with 57 financial institutions
 We built the nationwide network of 93 tax and accounting firms, etc. (AZN Nationwide Network)

Aoyama Zaisan
Networks

Financial
institutions￥

Accounting
firms

×

×

57

companies

93

companies© 2024 Aoyama Zaisan Networks Group34

Publication of 3 Books
・Published 3 books on inheritance and business succession.
・We will further strengthen our efforts to attract new clients through the book and publication
seminars,Released on October 30, 2021

Released on November 11, 2021

Released on February 1, 2022

Publisher: NIKKAN KOGYO SHIMBUN,LTD.
Price: 1,500 yen（tax excluded）

Publisher: Nikkei Business Publications, Inc.
Price：1,600 yen（tax excluded）

Publisher: Nikkei Business Publications, Inc.
Price: 1,500 yen（tax excluded）

The concept, measures, and case studies are
introduced in an easy-to-understand manner tohelp managers of small and medium-sizedenterprises find the best exit for their business,such as when they have concerns about businesssuccession.

When land-owning asset holders andfamily business owners are concerned
about inheritance and succession, we
introduce how to find the "bestinheritance strategy" to solve theirproblems from "five perspectives" in linewith the concept of "holistic
optimization".

When family business owners are worried
about inheritance and succession.... Through 19
examples of failures caused by measures
without "thought," "understanding," and"appreciation," this book introduces tips on
how to successfully promote businesssuccession.
© 2024 Aoyama Zaisan Networks Group35

Conducting Seminars
・Seminars on asset and business succession are regularly held.
・We will continue to further strengthen our contacts with new clients through seminars.

© 2024 Aoyama Zaisan Networks Group36

Please refer to the following URL for our IR information.
https://www.azn.co.jp/ir

Aoyama Zaisan Networks Co., Ltd.
Corporate Finance Division
TEL 03-6439-5824 FAX 03-6439-5851
The statements in this document regarding earnings forecasts and other forward-looking statements are forecasts based on
judgments made in accordance with information available at the time this document was prepared, and involve potential risks
and uncertainties. Accordingly, please be aware that actual results may differ from these forecasts due to various factors.
© 2024 Aoyama Zaisan Networks Group