Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended September 30, 2023
(Based on Japanese GAAP)
November 14, 2023
Company name:
Aoyama Zaisan Networks Co., Ltd.
Stock exchange listing: Tokyo
Stock code:

8929

Representative:

President
Director, Managing Executive Officer, andInquiries:

URL

https://www.azn.co.jp/
Masazumi Hasumi
Shintaro Hashiba

Corporate Finance Division

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 14, 2023–

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

NoTEL

03-6439-5800(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended September 30, 2023 (from January 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended September 30, 2023
Nine months ended September 30, 2022

Millions of yen
25,69928,033

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(8.3)
1,821
9.4
1,947
21.5
1,267
19.1
56.1
1,665
18.7
1,602
17.7
1,064
(9.6)

Earnings per share

Diluted earnings per share

Yen
52.13
43.89

Nine months ended September 30, 2023
Nine months ended September 30, 2022

Yen
52.11
43.84

(2) Consolidated financial positionTotal assets
As of September 30, 2023
As of December 31, 2022

Net assets

Millions of yen
22,572
21,757

Equity ratio

Millions of yen
8,799
8,320

Net assets per share%
38.7
38.0

Yen
358.67340.13

2. Cash dividends
Annual dividends per share

Year ended December 31, 2022
Year ending December 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
13.00
15.00

Yen––

Yen
22.00

Yen
35.00

26.00

41.00

Year ending December 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
37,400
4.0
3,300
25.5
3,370
34.8
2,040
20.4
83.84

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes
No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

24,520,859 shares As of December 31, 2022

24,520,859 shares

Number of treasury shares at the end of the period
As of September 30, 2023

189,246 shares As of December 31, 2022

220,328 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended September 30, 2023

24,316,926 shares Nine months ended September 30, 2022

224,259,222 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2022As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

12,804684

11,827769

Real estate for sale

1,751

3,635

Other inventories
Other

15160

12195

Allowance for doubtful accounts

(0)

(9)

15,416

16,430

2,324

2,235

195

195

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

110

103

2,630

2,534

Goodwill
Software
Other

19365
25

12283
23

Total intangible assets

410

320

2,727
37

2,835
38

160
375

39373

3,300

3,287

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

36,341

6,141

21,757

22,572

(Millions of yen)
As of December 31, 2022

As of September 30, 2023

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds payable
Income taxes payable
Accounts payable - otherProvision for bonuses
Other
Total current liabilities

291

205

–
1,950

1,925
1,942

150

60

687
1,128

252
621

–

548

935

771

5,142

6,326

Non-current liabilities
Bonds payable30–

Long-term borrowings

6,003

4,902

Long-term leasehold and guarantee deposits received
Long-term accounts payable - other

2,180
54

2,473
46

Other

26

24

8,295

7,445

13,437

13,772

Shareholders' equity
Share capital
Capital surplus

1,210
1,374

1,210
1,381

Retained earnings
Treasury shares

5,593
(168)

5,961
(144)

Total shareholders' equity

8,010

8,409

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

20647358(41)Total accumulated other comprehensive income

254

317

30
24

43
28

8,320

8,799

21,757

22,572

Total non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

28,03324,05825,69921,603Gross profit

3,975

4,096

Selling, general and administrative expenses

2,309

2,274

Operating profit

1,665

1,821

82

173

Non-operating income
Foreign exchange gains
Other

1228

Total non-operating income

94201

Non-operating expenses
Interest expenses

6058

Commission expenses

8416

Other

120

Total non-operating expenses

15775

1,602

1,947

0–

0–

Impairment losses

5–

Total extraordinary losses

5–

Profit before income taxes1,597

1,947

Income taxes - current
Income taxes - deferred558
(21)

621
53

Total income taxes

536

675

1,060

1,271(4)

4

1,064

1,267

Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Nine months ended
September 30, 2022
ProfitNine months ended
September 30, 2023

1,060

1,271

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(7)
126

152(89)Total other comprehensive income

118

62

Comprehensive income

1,178

1,334

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,182

1,330(4)4Other comprehensive income

Comprehensive income attributable to non-controllinginterests

6