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, 2023
Fiscal Year Ending December 31, 2023

Securities Code ：8929
Aoyama Zaisan Networks Co., Ltd.
August 9, 2023
© 2023 Aoyama Zaisan Networks GroupContents

1

Financial Results for the Six Months Ended June 30, 2023

２ Shareholder Return Policy

3 Appendix© 2023 Aoyama Zaisan Networks Group1

Section 1

Financial Results for the Six Months Ended June 30, 2023
 Highlights of Consolidated Financial Results
 Actual PL ー In Case of Adopting the Net Amount Method
 Breakdown of Changes in Operating Profit
 Gross Profit by Segment
 Changes in Net Sales of Asset Consulting
 Net Sales by Segment
 BS Highlights

Highlights of Consolidated Financial Results
・Net sales (and gross profit from real estate planned for the second quarter) declined year on year due to thereclassification of real estate for sale for ADVANTAGE CLUB, which was planned to be structured for 5
billion yen in the second quarter, to STO, which was structured in the third quarter.
・Despite the above factors, operating profit, ordinary profit, and gross profit were higher than those in thesame period of the previous year due to significantly higher sales in asset consulting, especially in asset
succession.
Unit: Million yen© 2023 Aoyama Zaisan Networks Group3

Five-Year Changes in Consolidated Financial Results (Six Months)

Unit: Million yen© 2023 Aoyama Zaisan Networks Group4

Actual PL — In 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 aconsulting firm. We believe that this disclosure of actual conditions will provide useful information forinvestors.
Unit: Million yen* Net sales are calculated by netting the net sales related to real estate purchases and sales out of the net sales for accounting purposes (costs of sales related to real estate purchases are offset against net sales).
Costs of sales are calculated by deducting costs of sales related to real estate purchases and labor costs recorded in costs of sales from the accounting costs of sales.

© 2023 Aoyama Zaisan Networks Group5

Breakdown of Changes in Operating Profit
・Gross profit (excluding personnel expenses) increased due to increased sales of high-profit margin asset
succession
・Expenses decreased mainly due to decrease in taxes and dues resulting from decrease in ADVANTAGE
CLUB's composition amount, although personnel expenses resulting from increase in the number of
employees increased.
Unit: Million yen
Increase in gross profit
Decrease in selling, general and(excluding personnel expenses)
Increase in personnel expenses administrative expenses（excluding personnel expenses）

+17

1,097

FY2022
Q2

▲26

＋15

1,102

FY2023
Q2© 2023 Aoyama Zaisan Networks Group6

Gross Profit by Segment■Asset Consulting
Unit: Million yen■Real Estate Transactions

 Gross profit ratio improved due to anincrease in sales of high-profit margin asset
succession.
 Although we have just achieved 38.9% of
our annual net sales target of 7.5 billion yen,
we will achieve this target by closing
projects that have already beencommissioned through the second half ofthe fiscal year.

Unit: Million yen

 We will ensure profitability throughout theyear, exceeding last year's gross profit
ratio of 9.5% for real estate transactions.

© 2023 Aoyama Zaisan Networks Group7

Changes in Asset Consulting Sales
Although business succession (family succession), M&A, business succession fund, andcomposition of ADVANTAGE CLUB will be more heavily weighted in the second half of fiscal
year 2023, sales of asset succession increased significantly, resulting in an increase over thesame period last year.
Unit: Million yen

3,327
2,981

3,500
3,000

2,484

597

1,500

541

916
1,214

495

0

616
470

1,024
724

1,000
500

2,921

677

2,500
2,000

2,838

1,834

1,447

1,436

1,359

1,197

FY2019Q2

FY2020Q2

FY2021Q2

FY2022Q2

FY2023
Q2

Asset succession
Business succession
Product composition, etc.

© 2023 Aoyama Zaisan Networks Group8

Net Sales by Segment
Asset Consulting
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.

Real Estate Transactions
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© 2023 Aoyama Zaisan Networks Group9

Asset Succession (for Individual Asset Owners)

Unit: Million yen
2,000

1,834

1,800
1,600

1,447

1,436

1,400

1,359
1,197

1,200

 Sales have significantly increased due to anincrease in the number of clients.

1,000
800
600
400
200
0

FY2019Q2

FY2020Q2

FY2021Q2

FY2022Q2

FY2023
Q2© 2023 Aoyama Zaisan Networks Group10

Business Succession (for Business Owners)

Unit: Million yen
1,300

Succession to the family line
 Generally the same level as the previous period.
We will aim to accelerate account plan closings byincreasing the number of clients from the third
quarter onward.

1,214

1,200
1,100

1,024

1,000

M&A（Third-party succession ）

900
800

796

426

700
600
500
400

495

247

59
46
263
389

100
0

724
176

300
200

 We expect to close large M&A deals in the thirdand fourth quarters of this fiscal year.

349

95

470
37

453

423

FY2022Q2

FY2023
Q2

Business succession fund (Discontinuation of business)
8154
FY2019Q2

FY2020Q2

Business succession fund

FY2021
Q2

M&A

Succession to the family line This fiscal year, we expect to recover the two
investments made last year in the fourth quarter.
 Business succession fund needs are high, and we plan
to make several investments over the second half ofthe year.
 Note that in FY2020, the costs of sales were 573
million yen on sales of 796 million yen (actual sales of
222 million yen).
© 2023 Aoyama Zaisan Networks Group11

Product Composition, etc.
Unit: Million yen
1,000
900
800



677

616

597
541

There were no dissolutions in the first half of the year.

285

273

400

Other
450

81

327

200



Management fees during the period for ADVANTAGE CLUB in
operation, AM fees for regional development projects, andintermediary fees for operating leases are recorded.



ADVANTAGE CLUB's management fees for the period haveincreased in line with the increase in the origination balance. On theother hand, operating fees were not incurred during the period,
resulting in a slight increase overall.

476
330

242

100
0

AD Dissolution (commission fees at the time of dissolution)



168

239

500

300

It was lower than the previous period due to a decreasein the composition amount of ADVANTAGE CLUB.

271

700
600

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

916

90

109

FY2019Q2

FY2020Q2

AD Composition

FY2021
Q2

AD Dissolution

FY2022Q2

FY2023
Q2

Other© 2023 Aoyama Zaisan Networks Group12Changes in Number of Consultants and ClientsPOINT

 We are actively hiring consultants due to increase in number of clients (The current period is weighted
toward the second half of the year).
 Although the number of clients per consultant has increased due to the utilization of the ART system,
etc., the number of clients per consultant has remained flat due to an increase in new hires.

Unit： No. of persons

2,498

No. of consultants

2,377

No. of clients
1,752

1,823

1,905

2,076

1,398

735

97

End of
FY20142014年度末

847

102

End
of FY2015
2015年度末

967

120

End
of FY20162016年度末

134

148

167

170

183

208

203

End of FY2017 2018年度末
End of FY2018 2019年度末
End of FY2019 2020年度末
End of FY2020 2021年度末
End of FY2021 2022年度末
End of FY2022
2017年度末End of FY2023
2023年度(As of the end of Q2)© 2023 Aoyama Zaisan Networks Group

13

Real Estate Transactions
Unit: Million yen
20,00018,00017,393ADVANTAGE CLUB（Real estate transactions）

1,886

16,00014,00012,00011,118430

10,000

8,937
1,125

8,000
6,000
4,000
2,000
0

6,184

3,563

2,621

FY2019Q2

6,136

15,507

7,812

ADVANTAGE CLUBFY2021Q2Other real estate transactions
 Rental income is recorded when real estate other than
ADVANTAGE CLUB is provided or when real estate is
held.

3,799

FY2020
Q2

 The transfer of the asset for this STO was completed at
the end of July and will be recorded as revenue in thethird quarter.
 We will accelerate composition in the third quarter andbeyond.

10,6872,337

 The number of properties originated in the first half of the
fiscal year was three, as a project in Jingumae, Shibuya-ku,
which was scheduled to be originated in the second
quarter and was in the process of being purchased, wasswitched to STO use.

FY2022Q2

FY2023Q2Other real estate transactions© 2023 Aoyama Zaisan Networks Group14

BS Highlights（Financial Strategies）[Basic Policy] The company has secured cash and deposits of 10 billion yen to cover personnel expenses and expenses for the next two years. In
addition, a 5-year commitment line of credit with a term equivalent to that of the equity has been established in case of any economic risk. Maintainnegative net debt.
[Real estate for sale inventory policy] We will continue to expand the formation of ADVANTAGE CLUB, but we will continue our policy ofcompleting the offering in advance and forming ADVANTAGE CLUB on the same day as the purchase and settlement of real estate, and we will
not continuously carry any inventory (Properties under renovation will be held).
There is no impact from the interest rate hike due to the Company's policy of not holding real estate inventory.
* Real estate for sale and interest-bearing debt temporarily increased due to the acquisition of real estate for sale in June for the STO composition,
which was sold and repaid at the end of July.
Total assets 24,982 million yen
Interest-bearing
liabilities2,071

Total assets 21,757 million yen
Interest-bearing liabilities
2,152
Residual borrowing period
13 years

Cash and deposits
12,804

Other than the above
Interest-bearing
liabilities

Real estate for sales 1,751

Other assets
4,931

Cash and deposits

11,651Other than the above
Interest-bearing liabilities

9,556

5,981

Other liabilities 5,303

Real estate for rent
2,271

Residual borrowing period
12 years

Net assets 8,320(Equity ratio: 38.0%)

End of FY2022

Real estate
for sales 6,237
Real estate for rent
2,221
Other assets
4,872

Other liabilities 5,303
4,686

Net assets 8,667（ Equity ratio 34.4%）

End of FY2023 Q2© 2023 Aoyama Zaisan Networks Group15

Section ２

Shareholder Return Policy

Shareholder Return Policy
１

Dividend payout ratio of 50% or more

２

Continuous dividend increases
Maintaining DOE level above cost of equity

３*We assume a cost of equity of approximately 8%.

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© 2023 Aoyama Zaisan Networks Group17

Changes in Dividends（Unit : yen)

We have already increased dividends for 12 consecutive terms, and we are planning to increase dividends

for 13 consecutive terms this fiscal year.

41.0円

3.0

We have the policy to increase dividends for 14 consecutive fiscal years during the third mediumterm management plan period.

35.0円

3.0

Since the probability of realization in FY2023 has increased, we have decided toincrease the year-end dividend by 3 yen, from the original 23 yen to 26 yen,which will bring the dividend payout ratio to 50% level.

25.0円
2.5

26.5円

16.5
12.5

11.5円
7.5円

Interim dividend
Commemorative dividend
2.5

3.25

3.75

2010

2011

2012

31.5%

86.1%

Dividend
payout ratio 64.1%

5.0
5.0

17.0

14.0

15.0円

9.0円

23.0
22.0

19.5円

Year-end dividend

28.0円

9.5
7.5

6.5
4.0

5.5

7.0

8.5

10.0

11.0

13.0

15.0

2022

2023

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%

2024

50.4%

※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.
© 2023 Aoyama Zaisan Networks Group18

Section 3
 Company Profile

Appendix Market Environment
 Strategic Personalized Services
 ADVANTAGE CLUB
 Progress in Digital Transformation
 IR activities this fiscal year ESG/SDGs Initiatives

 Book and Seminar IntroductionCompany Profile
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

Capital1,210,990,000 yen ※as of June 30, 2023

No. ofemployees

297 (Group) ※as of June 30, 2023

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© 2023 Aoyama Zaisan Networks Group20

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.
2020

2020s

2021
2021
2022

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

Established Aoyama Family Office Service Co., Ltd.

Sep. The 30th anniversary of establishment
Aug. Completed construction of TSURUGA POLT SQUARE otta, the second project for regional
development© 2023 Aoyama Zaisan Networks Group21

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© 2023 Aoyama Zaisan Networks Group22

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. 1,900

Monthly advisory
contract fee© 2023 Aoyama Zaisan Networks Group23

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© 2023 Aoyama Zaisan Networks Group24

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© 2023 Aoyama Zaisan Networks Group25

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

（Operating profit: Million yen）

Sublease, other

Resale of real estate

Asset consulting

Operating profit

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

35,000〈Advantage Club〉

3,500

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

30,000Consulting real estate transactions

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

3,000

2,500

25,00020,0002,000

15,0001,500

10,000

1,000

5,000

500

0

0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

-4,000© 2023 Aoyama Zaisan Networks Group26

Changes in ROE and ROIC
ROE

Target 20% level or higher

ROIC

Target 10% level or higher
ROE

35.0%
30.0%

ROIC

31.1%
28.6%

25.0%

22.0%

22.0%

20.0%
15.0%

13.4%

13.0%

12.7%
12.2%
8.0%

10.0%

10.0%

5.0%
0.0%
2018年度FY20182019年度FY20192020年度FY20202021年度FY20212022年度FY2022© 2023 Aoyama Zaisan Networks Group27

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

Asset consulting sales increased due to an increase in the number of clients.

Sales perclientSales per client
3,333
2,794

(Unit: thousand yen)

2.60 - 3.30 million yen

Average
3,230

2,810

2,802

3,052

5,564

3,048

5,806

2,671

2,950
2,610

6,204
5,545

4,909
3,928

Sales ofasset
consulting

3,123
2,450

(Unit: Million yen)

No. ofclients(Unit: persons)

End of FY2014

End of FY2015

End of FY2016

End of FY2017

End of FY2018

2,076

1,905

1,823

1,752

1,398

967

847

735

2,377

2,366

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（Panned)(Planned)© 2023 Aoyama Zaisan Networks Group28

Japan’s Population Trends
 Elderly population over 65 years old will continue to rise
POINT  Demand in the inheritance market is expected to increase as the population ages
（10 thousand people）
Population under 14 y.o.
14,00012,32812,0001,489

12,544

1,826

12,6702,201

12,7292,567

12,7082,925

12,5203,342

12,4103,612
29%12,066
3,657
30%

6,000

11,212
33%

8,716

38%

39%

8,409

8,103

39%

40%

40%

10,728
10,221

32%

35%
9,708

3,741
3,868

3,856

3,768

20%

15%

4,000

36%

23%
8,622
17%

9,193

3,626

8,674

25%
3,464

7,592

7,341

7,085

6,773

6,343

15%
5,787

5,353

5,001

4,706

4,418

2,000
2,001

1995

10%
5%

1,847

1,752

1,680

1,586

1,457

0
1990

30%

20%

12%

2,249

（％）
45%

11,662

3,685

27%

8,590

Aging rate

Estimated value

10,0008,000

Population of over 65 y.o.

Population of 15～64 y. o.

2000

2005

2010

2015

2020

1,324

1,204

1,129

1,073

1,012

939

861

791

2025

2030

2035

2040

2045

2050

2055

2060

Source: “Information and Communication White Paper: The Coming of Society with a Declining Population, 2016
Edition” prepared by Ministry of Internal Affairs and Communications
https://www.soumu.go.jp/johotsusintokei/whitepaper/ja/h28/html/nc111110.html

0%© 2023 Aoyama Zaisan Networks Group29

Environment Surrounding Individual Asset Owners 〈Inheritance Market〉
POINT

Cash, savings, and securities account for 50% of inherited assets, and there is still a great needfor tax financing measures by reviewing asset portfolios.

Inheritance tax return results <Tokyo / 2021>①

No. of affected persons (No. of deceased)

127,649②

No. of decedents for filing ofinheritance tax returns

23,130③

Tax ratio (②／①)④

No. of heirs who are inheritance tax
payers⑤

Taxable amount

4,279.0 (billion yen)⑥

Amount of tax

746.9（billion yen)⑦⑧

Composition Ratio of the Amount of Money in Inherited Properties <Tokyo / 2021>

Other
9.6％

18.1％
50,706

Cash /
saving, etc.

Amount of tax (⑥/②)

36.5％

28.7％

Taxable amount (⑤/②) 185,000 (thousand yen)
Per person

Land32,290 (thousand yen)*Source: Summary of inheritance tax returns for 2021 prepared by Tokyo Regional Taxation Bureau

Securities

20.7％

4.5％
Houses© 2023 Aoyama Zaisan Networks Group30

Environment Surrounding Individual Asset Owners 〈Inheritance Market〉
 Reform of the Tax system in 2013 ※ Effective on January 1, 2015
Reduction in the basic inheritance tax exemption and an increase in the maximum tax rate to 55%
The number of taxable persons increased sharply and taxable ratio increased significantly

POINT

No. of taxable heirs <Tokyo / Chiba / Kanagawa / Yamanashi>
Unit: thousand people
45
40

42.9

35
30

No. of taxable heirs
32.2

25

32.9

35

36.8

36.1

2018

2019

38.3

20
15
10

16.4

17.3

18.1

18.6

2011

2012

2013

2014

5
2015

2016

2017

*Source: Summary of inheritance tax returns for 2021 prepared by Tokyo Regional Taxation Bureau

2020

2021

© 2023 Aoyama Zaisan Networks Group

31

Environment Surrounding Business Owners 〈Business Succession Market〉
 The average age of presidents has increased over the years and is now over 60 years old
 The rate of successor absence remains high

POINT

Average age of presidents（throughout Japan） The rate of successor absence（throughout Japan）

1990

2021

2011

2022

Average age of presidents

Average age of presidents

The rate of successor absence

The rate of successor absence

54.0 y. o.

(歳)

60.3
y.o.

54.0
y.o.

65.9

66.5

66.4

65.2

65.1
61.5
57.2

The rate of successor absence remains high~~Source: Reorganized and processed based on the Teikoku Databank’s
National President Age Analysis (2021) data.

57.2％

(％)

70
68
66
64
62
60
58
56
54
52
（年） 50

21
2020
19
18
17
16
15
14
13
12
11
2010
9
8
7
6
5
4
3
2
1
2000
99
98
97
96
95
94
93
92
91
1990

62
61
60
59
58
57
56
55
54
0
53

65.9％

60.3 y. o.

2011

2017

2018

2019

2020

2021

2022

Source: Reorganized based on data from Teikoku Databank's "National Survey of the rate of successor absence 2022"© 2023 Aoyama Zaisan Networks Group32

Strategic Personalized Services
Incorporate strategic personalized services into

Effective
land use
consulting

Family officeservices

Regional
development
consulting

Total asset
consultation

Comprehensive Asset Consulting

ADVAN
TAGE
CLUB
Purchase
consulting

Comprehensive
Asset
Consulting

Financial
product
consulting
by IFA

Business
succession
fund

STO
business© 2023 Aoyama Zaisan Networks Group

33

8 Strategic Personalized Services
ADVANTAGE CLUB（ Small-lot real estate
product ）A real estate leasing system in which real estate with high asset value, mainly in the three central
wards of Tokyo, is purchased jointly and profit is received through real estate leasing.

Purchase consulting

Consulting services for the sale of profit-producing real estate in central Tokyo and total property
management after sales.

Effective land use
consulting

Our dedicated team of effective utilization specialists will consolidate your land information andtenant store opening information for land in the Tokyo metropolitan area, and assist you in planningand executing effective land utilization.

Family officeservice

For family businesses of a certain size, this service provides support for the creation and operationof a system that enables the family and the family business to prosper in perpetuity.

Regional development
consulting

Using our expertise in the Real Estate Specified Joint Enterprise Act and financing, we willdevelop and operate real estate such as idle land and aging public and utility facilities that willlead to regional revitalization through investments by our customers and other public and private
entities.

Business succession fundA service that supports companies with losses but excess assets, etc. through succession funds,
mainly for the purpose of reducing or reorganizing the size of the business, maintaining
employment, and preserving the owner's assets.

Financial product consulting by
IFA

The most typical securities management services, global equity and global receivables-based
long-term financial product management support.

STO businessWe provide STOs (security token offerings), which are securities backed by income-producing
real estate that can now be issued under the amendments to the Financial Instruments andExchange Act in 2020.
© 2023 Aoyama Zaisan Networks Group34

Structure of ADVANTAGE CLUB

Voluntary Partnership③ Association composition

Project Participants
Voluntary Partners (investors）

2

1

Monetary
investment
10 million yen
per unit

9

Execution of Real Estate Distribution ofSpecified Joint
ProfitEnterprise Agreement(Voluntary Partnership
Agreement ）4

Acquisition oftarget realestate5 LeasingTarget Real Estate

Master Leasing Company
Aoyama Sogo Estate Co., Ltd.

8 RentBoard
ChairmanReal Estate Specified Joint Enterprise
Aoyama Zaisan Networks Co., Ltd.

Management business decision
making and administrative
affairs representation

6 Subleasing

7 RentTenants© 2023 Aoyama Zaisan Networks Group35

ADVANTAGE CLUB’s Composition Results
POINT

 AD's target composition amount for FY2023 is 32.5 billion yen (Composition to be 4 times of the total net assets at the endof the previous fiscal year）
 The number of financial institutions with which we work, including regional banks and securities firms, has expanded to 43.
We guide our clients to comprehensive asset consulting with ADVANTAGE CLUB as a gateway.

Kyobashi Takaracho

Akasaka

Tsukiji• Implemented in June 2023 • Implemented in March 2023

• Implemented in Dec. 2022

• Total amount of investment • Total amount of investment• Total amount of investment
1.7５ billion yen
5.9 billion yen
4.9 billion yen

882.8■New composition amount■Existing cumulative composition amount(Unit: 100 million yen)

509.3
42.5

End of 2017

574.5
65.2

End of 2018

627.5
53.0

End of 2019

720.3

325
1,167.7

284.9

162.5

92.8

End of 2020

End of 2021

End of 2022

End of 2023
(Planned)

End of 2024
(Planned)© 2023 Aoyama Zaisan Networks Group36

ADVANTAGE CLUB (AD) Long-Term Profitability Model
POINT The keys to monetizing AD are its "composition," "operation and management," and "dissolution”
 Long-term revenue model proportional to the number of AD compositions
Monetization Point

Composition-to-dissolution Cyclic Model

Acquisition &Composition of
VoluntaryPartnershipSale of Real Estate

Acquisition andSale of Real Estate

Composition of
Voluntary Partnership

・・・

Real estatetransaction

Revenueclassificat

The current period’s
AD Composition Target

Dissolution

Approx. 15 years

Breakdown

Administration

ProfitDissolution

Administration

Real estatetransactions

Administration
fee forcomposition

Management fee

Brokerage fee
Administration fee fordissolution

Asset consulting（Product composition, etc.）32.5 billion yen© 2023 Aoyama Zaisan Networks Group37

ADVANTAGE CLUB’s Reimbursement Results (Dissolution of association through sale of property)

POINT Since 2010, we have comprehensively assessed real estate market trends, property conditions
and occupancy levels, etc. 31 properties are sold by resolution of the association members andthe proceeds are distributed to the association members.
Part of the properties sold (Generally, the company considers selling after 6 to 8 years of partnershipformation. The prospect of sale is approximately 10 years after the formation of the cooperative.)

Roppongi
3 chome

GotandaNIhonbashi

Nihonbashi
odenmacho

Shibuya

Kyobashi
Bldg.

Shinjuku
A-ONE
Bldg.

Ginza 8
chome

Tokyo
Yaesu Exit

Kyobashi
Chuo

Performance of property sales （Average of 31 associations dissolved due to property sales ）Per property（1000 yen）※Rounded to the nearest thousand yen
Average
operation
periodAmount ofcomposition A

9 years and3 months

10,000average sales
priceprofit and loss on
sales

11,137

1,137

B

C（B-A）

Accumulated
average
distributions
D

4,529

Averagedifferentialbalance
（C+D）

5,666

Simplyaveragedannualized
yield（roughestimate）

6.12 ％© 2023 Aoyama Zaisan Networks Group38

Progress in Digital Transformation
POINT

Promoting digital transformation in consulting and in the product area

Attracting
clients

Up tothepresent

DX
currentlyinprogress

Referrals
from Partners

DirectMarketing

Promoting automatedresponses to leads
attracted and acquired
through web advertising

DigitalTransformation of
Products

Consulting Process
Analysis of current
situation

Proposal

Execution

Review〈PDCA〉

Consulting for
the Next
Generation

Accumulated consultants’ expertise to respond to their needs

Interactive Tool (App)ART System
After inputting customer data,
speedily analyze issues and present
options for countermeasures

Providing added
value as before
through consulting
expertise

Utilizing ChatGPTStarted using it as a tool for information
dissemination and daily communication.
Its application and contract are scheduled to
begin next fiscal term.

Currently approximately 500
persons started to use them

Real Property STO 〈Digital securities 〉© 2023 Aoyama Zaisan Networks Group39

IR Activities for This Fiscal Year
POINT

Expanded opportunities for dialogues with shareholders andfurther IR activities after June

1

Enhancement of overseas IR

２

Active IR Activities Conducting the overseas IR roadshow for the first time
In August, we are to meet with more than 20 institutional investors in New York, San Francisco, etc. in
the U.S. (to be confirmed). Next meeting is to be held in Asia
 A briefing for individual investors was held in June. Another briefing is scheduled to be held in Autumn.

 A small meeting for institutional investors was held on August 25.
 Approximately 150 IR meetings were conducted in FY2022. 200 IR meetings are scheduled
to be held in FY2023, which will be a significant increase over last year.
 Published integrated report in May 2023 for the third year in a row
 Proactively disclose our human capital management initiatives and responses to TCFD in our Annual
Securities Report, Integrated Report, and website, etc.

3

Other
 Creation of introductory materials and an introductory video for our supportive engagement byinstitutional investor Hibiki Perth Advisors, Inc.
 Astris Advisory Japan KK publishes our report（Scheduled to be posted on our website in early August)© 2023 Aoyama Zaisan Networks Group40

ESG/SDGs Initiatives〈Relationship between ● We recognize that addressing climate change is an important management issue
the SDGs and business〉affecting business continuity, and in particular, we view CO2 emissions from realE

Environment

estate-related business activities as a major risk affecting climate change. Therefore,
we have positioned our environmentally friendly initiatives as those that cancontribute to enhancing asset value and solving social issues.
・Promoting the switch to facilities with low environmental impact in the "ADVANTAGE
CLUB“ and electric power using clean energy.
・Endorsement and disclosure of the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).
・Contributing to a recycling-oriented society by promoting water conservation and waste
reduction in cooperation with the tenants of the ADVANTAGE CLUB in which it operates.
・For land utilization and construction support, ESG perspectives will be incorporated into
the analysis of current conditions, and materials and paints will be used to promote the useof equipment with low environmental impact.

●We will contribute to our customers and society by upholding and maximizing the "improvement ofS

SocietyG

Governancehuman resources" as our management capital.
・Improving employees' human skills and promoting employees' own social contribution activities.
・Developing a mechanism for early entry into the workforce through the introduction of an education system,
online education, etc.
・Increasing the percentage of female employees from approximately 30% to 40% and the percentage offemale managers from approximately 19% to 30%.
●We will contribute to society by forming partnerships in asset preservation and in the community.

・Contributing to welfare by utilizing land for childcare and senior facilities and providing architectural support,
as well as attracting hospitals, clinics, and other facilities of public and charitable nature.
・Contributing by creating a mechanism to give back to society by supporting the establishment of foundations.
・Contributing to urban development and the creation of local employment through partner collaboration (publicorganizations, financial institutions, and businesses) in regional development projects.

 Established a Nominating Committee and a Compensation Advisory Committee to establish an
appropriate management structure for the Company through the appointment and dismissal of
directors and succession planning (Succession Plan).
● We operate a Compliance Committee to promote legal compliance and a Compensation Advisory
Committee to ensure fairness and transparency.
41© 2023 Aoyama Zaisan Networks GroupPublication of 3 books
POINT 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

Publisher: NIKKAN KOGYO SHIMBUN,LTD.
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.

Released on November 11, 2021

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

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".

Released on February 1, 2022

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

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.
© 2023 Aoyama Zaisan Networks Group42

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

© 2023 Aoyama Zaisan Networks Group43

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, andinvolve potential risks and uncertainties. Accordingly, please be aware that actual results may differ from these
forecasts due to various factors.
© 2023 Aoyama Zaisan Networks Group