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 Three Months Ended March 31, 2014
(Based on Japanese GAAP)May 13, 2014
Company name:
Aoyama Zaisan Networks Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

8929
President

URL http://www.azn.co.jp/
Masazumi Hasumi

Inquiries:
Director, Administration Division
Scheduled date to file Quarterly Securities Report:

Yoshikazu Mizushima
May 13, 2014

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

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 three months ended March 31, 2014 (from January 1, 2014 to March 31, 2014)(1) Consolidated financial results (cumulative)

Percentages indicate year-on-year changes
Net sales

Three months ended March 31, 2014
Three months ended March 31, 2013

Operating income

Millions of yen
1,362
710

% Millions of yen
91.855(53.1)(115)

Net income per share

Ordinary income% Millions of yen–91–(126)% Millions of yen–43–(135)%––

Diluted net income per share

Yen
3.72
(12.78)Three months ended March 31, 2014
Three months ended March 31, 2013

Net incomeYen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
5,665
4,698

As of March 31, 2014
As of December 31, 2013

Equity ratio

Millions of yen
2,142
2,151

Net assets per share%37.645.7

Yen
182.12
183.17

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00

Yen–

Yen
1,000.00

Yen
1,000.00

0.00

–

10.00

10.00

Year ended December 31, 2013
Year ending December 31, 2014
Year ending December 31, 2014 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2014 (from January 1, 2014 to December 31, 2014)

Net sales
Millions of yen
Six months ending
June 30, 2014
Full year

Percentages indicate year-on-year changes
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%
Yen

2,825

77.5

29–29–

19(38.6)

1.62

7,060

10.8

260

62.2

250

75.0

230

14.4

19.64

14. Notes(1) Changes in significant subsidiaries during the three months ended March 31, 2014(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

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:
Changes in accounting policies due to other reasons:

No
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 March 31, 2014

11,709,600 shares As of December 31, 2013

11,709,600 shares

Number of treasury shares at the end of the periodAs of March 31, 2014

– shares As of December 31, 2013

– sharesAverage number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended March 31, 2014

11,709,600 shares Three months ended March 31, 20132

10,570,500 shares

Quarterly consolidated financial statements
Consolidated balance sheets
As of December 31, 2013

(Thousands of yen)
As of March 31, 2014

2,588,371
214,755
14,90011,407
147,583(10,031)2,966,986

2,035,320
339,535
1,471,208
11,313
100,231(29,500)
3,928,108

57,3591,40630,371
89,13655,192
1,406
29,87086,46842,796385,2323,266
431,295

39,247364,957
3,221
407,426

1,024,181
9,956
176,716
1,210,853
1,731,285
4,698,271

1,032,927
15,056
196,000
1,243,984
1,737,879
5,665,988

AssetsCurrent assets
Cash and deposits
Accounts receivable – trade
Real estate for sale
Other inventories
Other
Allowance for doubtful accounts
Total current assets
Non–current assets
Property, plant and equipment
Buildings and structures, netLand
Other, net
Total property, plant and equipment
Intangible assets
SoftwareGoodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Other
Total investments and other assets
Total non–current assets
Total assets3

As of December 31, 2013

(Thousands of yen)
As of March 31, 2014

51,492–
248,400
60,0004,595
19,738470,031854,258

35,6741,000,000
285,600
60,00081,55812,041
309,050
1,783,923

210,000
670,000
20,703722,356–
63,436
3,588
2,167
1,692,253
2,546,511

180,000
673,400
2,883
779,451
51,933
11,89537,4692,167
1,739,202
3,523,126

1,030,817
736,896
372,062
2,139,775

1,030,817
736,896
298,516
2,066,229

6,479

67,663(1,428)5,050
6,933
2,151,760
4,698,271(1,362)
66,301
10,332
2,142,862
5,665,988

Liabilities
Current liabilities
Accounts payable – trade
Short–term loans payable
Current portion of long–term loans payable
Current portion of bonds
Provision for bonuses
Other provision
Other
Total current liabilities
Non–current liabilities
Bonds payable
Long–term loans payable
Long–term deposits received
Long–term lease and guarantee deposited
Long–term accounts payable – otherProvision for retirement benefits
Deferred tax liabilities
Other
Total non–current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available–for–salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
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)(Thousands of yen)
Fiscal year ended
Fiscal year ended
March 31, 2013
March 31, 2014
Operating revenue
Operating revenue
614,446
860,215
Real estate sales
96,020502,371
Total operating revenue
710,467
1,362,587
Operating cost
Cost For Sales
464,636
528,038
Cost of sales – real estate
104,270
444,889
Total operating cost
568,907972,928
Operating gross profit
141,560
389,659
Selling, general and administrative expenses
256,730
333,865
Operating income (loss)(115,169)
55,793Non–operating income
Interest income
86216
Dividend income
904
41,823Foreign exchange gains
685
–
Other
339
7,788
Total non–operating income
2,015
49,828
Non–operating expenses
Interest expenses
5,833
6,631
Bond issuance cost
6,287–
Loss on liquidation of subsidiaries silent partnership
–
6,363
Other
873
1,021
Total non–operating expenses
12,99414,016
Ordinary income (loss)(126,149)
91,605Extraordinary income
Gain on sales of investment securities–
7,899Total extraordinary income–
7,899
Extraordinary losses
Loss on valuation of investment securities
3,199
1,099
Total extraordinary losses
3,199
1,099
Income (loss) before dividends distribution from silent(129,349)
98,405
partnership, income taxes
Dividends distribution from silent partnership(661)
27,730
Income (loss) before income taxes and minority(128,688)
70,674interests
Income taxes – current
314
27,124
Total income taxes
314
27,124
Income (loss) before minority interests(129,002)
43,549Minority interests in income
6,074–
Net income (loss)(135,076)
43,5495

Consolidated statements of comprehensive income (cumulative)

Income (loss) before minority interests
Other comprehensive income
Valuation difference on available–for–sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to minority
interests

6

Fiscal year ended
March 31, 2013
(129,002)(Thousands of yen)
Fiscal year ended
March 31, 2014
43,549139,646(877)
138,768
9,766

61,183
66
61,250104,799

3,691

104,7996,074–