CFO ’s Message
Aiming for business growth and increased
dividends based on improved productivityof human resources
Our 2022 financial results met the targets of the Third Medium-Term Management
Plan, so the first year of the plan got off to a great start. We will strive to respondto market needs that are expected to expand, while we improve our consultantsʼ
capacity and productivity through DX measures and other means.

Favorable external environment, with interim targets achieved— C a n you speak about the business environment
and the progress of the Third Medium-TermManagement Plan?
We recognize that the external environment is favorable
at the moment. One factor we are presently viewing withcaution that might prompt future changes in the businessenvironment is the government’s debate over inheritancetaxes. In response to severe fiscal circumstances, it ispossible that taxation will be increased. As the movement
to seriously consider preparedness for inheritance
expands, so do client needs. To support this, we need towork to improve the quality and quantity of our consultants
and to promote DX. This is the biggest theme for Aoyama
Zaisan Networks.
Our Third Medium-Term Management Plan sets anoperating profit target of 35% growth annually on averagethrough 2024. In 2022, profit increased by 41.6%, thus
meeting the target. AZN also achieved its 2022 targets ofa dividend payout ratio of 50% and a dividend on equity(DOE) ratio of 10%. The actual figures were 50.1% and11.0%, respectively. This performance too is according toplan. Our basic policy is to achieve profit growth throughbusiness growth and increase dividends.
— W h a t impact do you anticipate from theexpected rise in interest rates in the future?
Due to the nature of the consulting business, we doTransitions in dividends & dividend payout ratio
InterimEnd of term

Commemorative dividend
38.0(Unit: yen)

35.0

25.0

26.5

28.0
23.0

2.5

22.0

19.5
16.5

17.0

14.0
12.5

7.0

8.5

10.0

11.0

13.0

15.0

Director, Managing Executive Officer

Shintaro Hashiba

not have a strong need to increase assets. In addition,
since 2010, AZN has strictly adhered to a policy of notowning any real estate for sale. The majority of our assets
held as investments are securities and other items thatcan be converted to cash in the short term. We hold cash
and cash equivalents sufficient to cover labor + sales andadministrative expenses for two years, and we are readyto continue serving our customers even in the event of amajor economic crisis. Even if interest rates rise above acertain level, our financial position enables us to respondto economic conditions, including repayment of loans.

Measures for business growth and ROIC management— C o u l d we hear your thoughts on financial
perspectives for business growth?
Growth through increasing our client base will require us to
improve our consultant capacity and productivity to meetthe needs of our clients. We are undertaking DX as one
solution to this issue. We are also working to expand ourareas of service, including strategic individualized services.
We believe we can expand overall property consulting
revenue by acquiring new clients through diverse services,then connecting them to our comprehensive property
consulting services.
— C a n you tell us about measures to increase
corporate value?
Starting in 2021, we have set return on invested capital(ROIC) as internal target figures for each business division.
Each division is tasked with making the most efficient useof the capital it has received. Each division then considers
what must be done to improve its ROIC. With ROIC, it
is easy to create an inverted tree structure and set KPIs.
Each division is required to track KPIs on a monthly basis
and to explain how changes in KPIs have affected ROIC.
Although confusion was experienced in some businessdivisions when the system was first introduced, operational
expertise was gradually accumulated, and it seems that
ROIC management started functioning well in 2022. Of
course, management is also very conscious of ROIC forthe entire company.

Payout ratio 38.3% 35.7% 80.3% 45.7% 50.1% 46.6%
Year

2018

2019

2020

2021

2022

2023 (forecast)
Aoyama Zaisan Networks ｜ Integrated Report 202315