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, 2022
(Based on Japanese GAAP)
November 11, 2022
Company name:
Aoyama Zaisan Networks Co., Ltd.
Stock exchange listing: Tokyo
Stock code:

8929

Representative:

President
Director, Managing Executive Officer, andURL

https://www.azn.co.jp/
Masazumi HasumiInquiries:

General Manager of Corporate Planning

Shintaro Hashiba

Division
Scheduled date to file Quarterly Securities Report:

TEL

03-6439-5800

November 11, 2022

Scheduled date to commence dividend payments:–Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:No(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended September 30, 2022 (from January 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended September 30, 2022
Nine months ended September 30, 2021

Millions of yen
28,033
17,958Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
56.1
1,665
18.7
1,602
17.7
1,064
(9.6)
58.9
1,402
90.6
1,361 111.6
1,177 235.5

Earnings per share

Diluted earnings per share

Yen
43.89
48.62

Nine months ended September 30, 2022
Nine months ended September 30, 2021

Yen
43.84
48.39

(2) Consolidated financial position
Total assets
As of September 30, 2022
As of December 31, 2021

Net assets

Millions of yen
20,671
17,426Equity ratio

Millions of yen
7,701
7,128

Net assets per share%
37.0
40.8

Yen
315.05294.61

2. Cash dividends
Annual dividends per share

Year ended December 31, 2021
Year ending December 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
22.00
13.00

Yen––

Yen
17.00

Yen–

22.00

35.00

Year ending December 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
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
36,500
50.7
2,550
37.4
2,420
34.7
1,690
14.1
69.55

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(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, 2022

24,520,859 shares As of December 31, 2021

24,362,800 shares

Number of treasury shares at the end of the period
As of September 30, 2022

220,283 shares As of December 31, 2021

220,248 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended September 30, 2022

24,259,222 shares Nine months ended September 30, 2021

224,217,257 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2021As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

10,865567

12,708671

Real estate for sale

118

1,270

Other inventories
Income taxes receivable

525

3–

Other

483

446

Allowance for doubtful accounts

(3)

(2)

12,062

15,097

2,369

2,359

195
116

195
119

2,681

2,674

28
495

21398

Other

27

25

Total intangible assets

551

445

Investments and other assets
Investment securities

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netLand
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software

1,587

1,900

Shares of subsidiaries and associates
Deferred tax assets
Other34
122
386

39
147
367

Total investments and other assets

2,131

2,454

5,364

5,574

17,426

20,671

Total non-current assets
Total assets3

(Millions of yen)
As of December 31, 2021

As of September 30, 2022

Liabilities
Current liabilities
Accounts payable - trade

189

262

200
1,298

200
1,904

Current portion of bonds payable

232

150

Income taxes payable
Accounts payable - other204
986

439
616

Provision for bonuses–

588

Short-term borrowings
Current portion of long-term borrowings

Other
Total current liabilities

736

428

3,846

4,590

Non-current liabilities
Bonds payable

180

60

Long-term borrowings

4,679

6,221

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

1,528
57

2,029
56

Other

6

12

6,452

8,379

10,298

12,970Shareholders' equity
Share capital
Capital surplus

1,167
1,330

1,210
1,374

Retained earnings
Treasury shares

4,625
(167)

4,963
(168)

Total shareholders' equity

6,955

7,381

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

181(24)

173
101

Total accumulated other comprehensive income

156

274

114

25
20

7,128

7,701

17,426

20,671

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, 2021

September 30, 2022

Net sales
Cost of sales

17,95814,74528,03324,058Gross profit

3,213

3,975

Selling, general and administrative expenses

1,811

2,309

Operating profit

1,402

1,665

33

82

Other

13

12

Total non-operating income

4694

Non-operating expenses
Interest expenses

5660

Commission expenses

2684

Other

5

12

Non-operating income
Foreign exchange gains

Total non-operating expenses

87

157

1,361

1,602

23190

–0213

0

9595

Profit before income taxes

1,564

1,597Income taxes - current
Income taxes - deferred213
177558(21)

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Impairment losses
Total extraordinary losses

Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

5390

536

1,174

1,060

(2)

(4)

1,177

1,064

Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Nine months ended
September 30, 2021
ProfitNine months endedSeptember 30, 2022

1,174

1,060

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

2436(7)
126

Total other comprehensive income

60118

Comprehensive income

1,235

1,178

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,238

1,182(2)(4)

Other comprehensive income

Comprehensive income attributable to non-controllinginterests6