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 Six Months Ended June 30, 2023
(Based on Japanese GAAP)
August 9, 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 HasumiShintaro Hashiba

Corporate Finance Division

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

TEL

03-6439-5800

August 9, 2023
August 21, 2023

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:Yes(for analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)

Six months ended June 30, 2023
Six months ended June 30, 2022

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
14,039 (30.6)
1,102
0.5
1,246
19.3
832
16.7
20,232
69.7
1,097(7.8)
1,044 (10.2)
713 (33.7)
Earnings per share

Diluted earnings per share

Yen
34.26
29.46

Six months ended June 30, 2023
Six months ended June 30, 2022

Yen
34.25
29.41

(2) Consolidated financial position
Total assetsAs of June 30, 2023
As of December 31, 2022

Net assets

Millions of yen
24,982
21,757

Equity ratio

Millions of yen
8,667
8,320

Net assets per share%
34.4
38.0

Yen
353.50340.13

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
39,500
9.9
3,300
25.5
3,050
22.0
1,980
16.8
81.38

1

4. Notes(1) Changes in significant subsidiaries during the six months ended June 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 June 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 June 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)
Six months ended June 30, 2023

24,309,461 shares Six months ended June 30, 2022

224,238,203 shares

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

As of June 30, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

12,804684

11,651560

Real estate for sale

1,751

6,237

Other inventories
Other

15
160

12343

Allowance for doubtful accounts

(0)

(7)

15,416

18,798

2,324

2,264

195

195

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

110

97

2,630

2,557

GoodwillSoftware
Other

19365
25

14310
24

Total intangible assets

410

350

2,727
37

2,824
38

160
375

30383

3,300

3,276

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

6,183

21,75724,982

(Millions of yen)
As of December 31, 2022

As of June 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

195

–1,9504,2001,967

150

90

687
1,128

340
697

–

304

935

731

5,142

8,527

Non-current liabilities
Bonds payable30–

Long-term borrowings

6,003

5,370

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

2,180
54

2,339
52

Other

26

24

8,295

7,786

13,437

16,314

Shareholders' equity
Share capital
Capital surplus

1,210
1,374

1,210
1,381

Retained earnings
Treasury shares

5,593
(168)

5,891
(144)

Total shareholders' equity

8,010

8,340

Valuation difference on available-for-sale securities
Foreign currency translation adjustment206
47299(38)

Total accumulated other comprehensive income

254

261

30
2439
27

8,320

8,667

21,75724,982

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)Six months ended

Six months ended

June 30, 2022

June 30, 2023Net sales
Cost of sales

20,232
17,562

14,03911,471Gross profit

2,669

2,567

Selling, general and administrative expenses

1,572

1,464

Operating profit

1,097

1,10262169

Non-operating income
Foreign exchange gains
Other

1124

Total non-operating income

73

193

Non-operating expenses
Interest expenses

39

38

Commission expenses

78

10

Other

80

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income

126

49

1,044

1,246

0–0–

Profit before income taxes

1,045

1,246Income taxes - current
Income taxes - deferred

327
5321
89

Total income taxes

333

411

Profit711

835

Profit (loss) attributable to non-controlling interests(2)

2

Profit attributable to owners of parent

713

832

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
June 30, 2022
ProfitSix months ended
June 30, 2023
711

835

Valuation difference on available-for-sale securities
Foreign currency translation adjustment091

93(86)

Total other comprehensive income

92

6Comprehensive income

804

842

Comprehensive income attributable toComprehensive income attributable to owners of parent

806

839(2)

2

Other comprehensive income

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)Six months ended
June 30, 2022

Six months ended
June 30, 2023

Cash flows from operating activities
Profit before income taxes

1,045

1,246

Depreciation
Amortization of goodwill

147
4141
4

Share-based payment expenses

108

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

0432

7304

Interest and dividend income

(4)

(13)

Interest expenses

3938

Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables

(0)
(18)

–122

Decrease (increase) in inventories(1,088)(4,451)

Decrease (increase) in accounts receivable - other
Decrease (increase) in advance payments to suppliers

(23)
148

(20)
(119)

Decrease (increase) in advances paid

(12)

25

Increase (decrease) in trade payables

52

(96)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes

(294)
(33)

(396)
(17)

Increase (decrease) in deposits received
Increase (decrease) in leasehold and guarantee deposits
received

(225)

(186)

356

159

Other, net

(114)

(233)

Subtotal

422(3,475)Interest and dividends received
Interest paid

4(37)

13
(35)

Income taxes refund (paid)

(192)

(653)

Net cash provided by (used in) operating activities

196(4,151)

(113)
(4)
(199)
113
10(13)
(6)
–
26
(17)

(194)

(11)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securitiesProceeds from sales and withdrawal of investment securities
Other, net
Net cash provided by (used in) investing activities

7(Millions of yen)Six months ended
June 30, 2022

Six months ended
June 30, 2023

Cash flows from financing activities
Increase (decrease) in short-term borrowings

–

4,200

Proceeds from long-term borrowings
Repayments of long-term borrowings

3,500(864)400(1,016)

Redemption of bonds

(142)

(90)

Proceeds from exercise of employee share options
Proceeds from share issuance to non-controlling shareholders

4420––

Purchase of treasury shares(0)–Dividends paid(409)(532)

Net cash provided by (used in) financing activities

2,149

2,961

Effect of exchange rate change on cash and cash equivalents

12047

Net increase (decrease) in cash and cash equivalents

2,272(1,153)

Cash and cash equivalents at beginning of period

10,862

12,801

Cash and cash equivalents at end of period

13,134

11,6488