Aoyama Zaisan Networks Company, Limited

Integrated Report 2022
Corporate Data (as of June 30, 2022)
Corporate Profile

Executives

Name of Company Aoyama Zaisan Networks Company, Limited

President

Masazumi Hasumi

Head Office

3F Aoyama Tower Place, 8-4-14 Akasaka, Minato-ku, Tokyo 107-0052
Phone: +81-3-6439-5800

Director, Managing Executive
Officer

Masayuki Yagi

Incorporated

September 17, 1991

Takeshi Matsuura

Capital stock

1,210.99 million yen

Director, Managing Executive
OfficerBusiness line

Property consulting
Business succession consulting
Real estate solutions consulting

Director, Managing Executive
Officer

Takaomi Ogawa

Director, Managing Executive
Officer

Shintaro Hashiba

Director, Executive Officer

Shinji Shimane

Director, Executive Officer

Hideo Matsuda

Director

Michihiro Nagasaka

Outside Director

Haruo Shimada

Outside Director

Keiji Watanabe

Outside Audit & Supervisory
Board Member (standing)

Hiroyuki Fujita

Audit & Supervisory Board
MemberHisao Nakatsuka

Outside Audit & Supervisory
Board Member

Hiroaki Rokugawa

Number of
290 (across group companies)
employees (Group)
Consolidated
subsidiaries

Aoyama Estate Co., Ltd.
Nihon Shisan Souken Co., Ltd.
Aoyama Zaisan Investments Co., Ltd.
Aoyama Zaisan Networks Kyushu Co., Ltd.
Aoyama Financial Service Co., Ltd.
Aoyama Family Office Service Co., Ltd., and 5 other companies

Stock Overview
Number of sharesin issue

24,520,859 shares

Number ofshareholders

5,868

Creating value with the sum total of interpersonal skills

Major Shareholders (Top 10)
No. of shares
held

Ratio (%) *Masazumi Hasumi

2,500,718

10.29

NOMURA PB NOMINEES LIMITEDOMNIBUS-MARGIN（CASHPB）

1,156,800

4.76

The Master Trust Bank of Japan, Ltd. (trust account)

1,109,000

4.56

Nihon M&A Center Inc.

1,000,000

4.11

Yasuo Takano

691,600

2.84

BNY GCM CLIENT ACCOUNT JPRD AC ISG（FE-AC）

575,054

2.36

Custody Bank of Japan, Ltd. (trust account)

537,300

2.21

For more information or inquiries about thisCustody Bank of Japan, Ltd. (pension trust account)

537,000

2.21

report, please contact:

Capital Asset Planning, Inc.

400,000

1.64

Aoyama Zaisan Networks Company, Limited

MSIP CLIENT SECURITIES

367,900

1.51

Corporate Planning Division

Name*Ratio of shares held to total number of shares issued (excluding treasury stock) (%)

Phone: +81-3-6439-5824
URL: https://www.azn.co.jp/contactus/

In consideration of the environment, this report uses FSC® forest-certified paper and vegetable-derived oil inks.

2206138

We will remain your best
partner in 100 years.
We are a comprehensive property consulting firm that safeguards both assets and the future.

CONTENTS
Our Profile
Overview of Aoyama Zaisan Networks 4

Our Value Creation Story
Our Value Creation Story 6

Our Vision
Our Vision 8

Our Strategy

Medium-Term Management Plan 9

Top Message

President’s Message 12

CFO Message

CFO’s Message 16

Our Value Drivers

Reliable products and services 18
A reliable organization 20
Consultants 22

Our Sustainability

Introducing the Board of Directors 24

Management
objectives

seek to contribute to the happiness of our
1. We
clients through the succession, operation andmanagement of property.

2. We seek to ensure both the physical and mental

well-being of the members whom we work with.

Core values

are committed to helping our clients resolve their asset-related problems, and we will
1. We
continue to grow into a company that takes true pleasure in helping our clients.

2.

As we work for AZN, we accumulate virtues and undergo growth into people with strong
interpersonal skills.

seek to maintain the balance among financial, physical, and mental resources and to enrich
3. We
and expand each of these aspects, enabling our clients to lead happy lives, and us too.

4.

Each of us understands his or her role, and to fulfill that role, each of us seeks to develop his or
her wisdom, capacity for action, and interpersonal skills, always displaying tenacity and passion.

Corporate Governance 26

Message from Outside Directors 28
Sustainability Management 30

Our Data

Financial & Non-financial Data (Summary) 34◎ Editorial Policy of this Report
This report primarily covers performance for FY2021 (January 1,
2021 to December 31, 2021). But some parts deal with data or
events from prior years or from most recent years.
Essentially, the subject of this Report is Aoyama Zaisan Networks and its group companies (10 consolidated subsidiaries)
as of December 31, 2021.

◎ Notes on future prospects
The contents of this Integrated Report that are not historicalfacts are future forecasts made by Aoyama Zaisan Networks
Company, Limited based on its outlook and plans. These futureforecasts contain factors including risks and variables; actual
outcomes and performance may vary from them.

◎ Published in August 2022

Our Profile
Overview of Aoyama Zaisan Networks
Growth trajectory

Our business model and 100-year property consulting
will continue to grow sustainably to become Japan's No. 1
comprehensive property consulting firm, supported by clients who know, "When it comes to property, it's Aoyama
Zaisan Networks."

Aoyama Zaisan Networks (AZN) is a property consulting
group serving both individual asset owners and businessowners. After commencing business in 1991 as a groupcompany of Funai Consulting Incorporated, the firm focused initially on the real estate business. With the global
financial crisis of 2008 as a turning point, we expanded
our business from a short-term profit taking structure centered on resale of real estate to a long-term, total optimization standpoint on property consulting for our clients as
our main focus. Our revenue classifies broadly from property consulting to real estate transactions, with property
consulting revenue being our main source of profits.
Through comprehensive property consulting for theperpetuation of families and businesses, Aoyama Zaisan
Networks contributes to the happiness of its clients. We

36.6%

Gross profit

63.4%(4,330 million yen)

3,500
3,000
2,500
2,000

1,000
4,000

500

0

0
First Medium-Term Management Plan
2006

2007

Period of growth in property
consulting services for individual
asset owners

2008

2009

2010

2011

2012

Expansion of the field of businesssuccession consulting for corporate
owners as a result of mergers

Identifying
issuesoperations, management, and businesssuccession● Consulting products and services

ActionInvestigation& review

Mid- to long-term plan

2013

2014

2015

2016

2017

2018

Period of growth as a comprehensive
property consulting firm

Second Medium-Term
Management Plan
2019

2020

-500

2021 (year)

On to the new stage by
expanding collaborations andgetting fortified with technologies

The Aoyama Zaisan Networks business model involves
building relationships of trust by contributing to the happiness of its clients and earning ongoing property consulting
revenue from these long-term relationships.
Our consulting process is firmly based on interviews
with our clients and collection of documentation. We provide long-term support to our clients by repeating thiscycle: analysis of the current situation, identification ofissues, planning and proposals, implementation, verification, and review by our own analysis tools and experts. Byutilizing AZN Group's proprietary ART system, we provide high-quality consulting services ranging from analysis
of current situations to planning and proposals.
In the fields of property and business consulting, AZN
is committed to 100-year property consulting to lookafter property not only for the current generation, but also
for the next generation and the third generation. Working
from a total optimization standpoint, we are always striving to solve issues related to the succession, operations,and management of property as well as business succession by building long-term relationships with our clientsand proposing methods to smoothly facilitate succession
and operations. By doing this, we maintain and expand
the size of our clients' assets and perpetuate their families and their businesses, providing the foundation for AZNGroup to earn stable revenue.
● 100-year property consulting
A business model in which long-term relationships are built with clients, which
generates long-term revenues through consulting from the current generation to
the next generation and beyond.

Scale of Asset
Value Business

1,500
8,000

2005

Analysis of
Current
Situation● Consulting on property succession,

Short-term plan

Full year ending December 31, 2021

*From 2019 onward, revenue from subleases is
included in revenue from real estate transactions andother revenue is included in revenue from property
consulting.

2004

Action & review

Property consulting
2,745 million yen■ Revenue from property consulting■ Revenue from real estate transactions■ Revenue from resale of real estate■ Revenue from subleasing and other income● Ordinary profit

12,000Planning & Proposals

ProposalsInterview anddocument
collection(Ordinary profit: million yen)

16,000Comprehensive property consulting
Property succession/operations/management and business succession

Analyzing issues, presenting options for countermeasures, and accumulating data through the ART system

Real estatetransactions
1,584 million yen(Sales: million yen)

20,000100-year property consulting offering long-term support for the current generation, next generations, and third generation

Consulting & Analysis of Current Situation● Overall composition of profits● Transitions in business portfolio and net sales
24,000● Business model

Third-generation manager
Third-generation owner
Next-generation manager
Next-generation ownerCurrent manager
Current owner

Property succession/operations/management and business succession

Time

The market environment & our strengths
Business line
Comprehensive property consulting, which lies at thecore of our business, is a consulting service designed toachieve the optimal property structure to perpetuate ourclients' families and businesses. We offer a one-stop consulting service for the succession, operation, and management of property and business succession for individual asset holders (landowners and financial asset holders)and corporate owners.
Our group supports total optimization planning andimplementation for our clients through expert perspectives, with more than 150 holders national certifications
employed by AZN, and through our unique analyticalmethods built up over many years.
4

Aoyama Zaisan Networks ｜ Integrated Report 2022

● Business and service overview
Businessline
Clients

Comprehensive property consulting(property succession/operations/management and business succession)
Individual asset owners(average assets: 1 billion yen)

● Inheritance strategy● Business succession

estate● Utilization of large
expanses of land
● Buying and selling of realestate, and more

● Mergers and acquisitions● Effective utilization of real

List ofServices

Company owners(supporting successors)● Support for business

transitions and closures● Financial improvement,

growth strategies, and more

● Advantage Club, regional development projects,

overseas operations, IFA

In January 2015, Japan’s Inheritance Tax Act wasamended, reducing the basic inheritance tax exemption
and raising the maximum tax rate to 55%. This has resulted
in a sharp increase in the number of persons now subject
to taxation, as well as a significant increase in the percentage subject to taxation. As a result, we have received anincreasing number of inquiries from individual asset owners,
and some of whom have become our clients.
In terms of business succession, Japan’s declining
birthrate and aging population have caused a chronic
shortage of suitable successors for businesses. By 2020,
the average age of company presidents in Japan was inexcess of 60 years, and the percentage of companies
without designated successors hovered around 65%.
We anticipate that our clients' needs for the succession,

operation and management of their property as well as
succession of business will continue to expand. By leveraging AZN’s strengths as a group and consistently working to resolve these issues, we will continue to accompany
our clients into the future.
● Strengths of Aoyama Zaisan Networks

1

Expert insights and application of technology

2

Ability to propose and implement total optimization
based on 5 standpoints

3

Comprehensive property consulting services for assets
and business

4

Reliability that comes from being listed on the stock
exchange, and neutrality that comes from being independent

Aoyama Zaisan Networks ｜ Integrated Report 2022

5

Our Value Creation Story
Our Value Creation Story
AZN Group's Management Objectives are "To contributeto the happiness of our clients through the succession, operation and management of property" and our mission is "Toachieve the optimal property structure through consulting on
the succession, operation, and management of property sothat our clients’ families and businesses can develop andprosper."
In order to realize this mission, AZN Group exists to "deliver
optimal proposals from a bird's-eye, big-picture perspectivein order to solve our clients' problems." We contribute to ourclients’ happiness through the enrichment of their property,

bodies, and minds by solving property-related problems thatexists in society, in the belief that the enrichment of social
property will lead to sustainable growth for society. We haveoutlined the process of value creation as shown in the diagram below.
Firstly, as an AZN comprehensive property consulting firm,
we provide total optimization solutions to the property concerns of asset owners and business owners that have somebearing upon social issues.
We contribute to our clients’ happiness by helping to resolve issues and eliminate concerns, and by helping to build

relationships of mutual support between property and business/family for our clients. Our clients' families will continue
to grow and prosper, passing on better assets and betterbusinesses to the next generation and onwards to the next
generations.
Our society will see the benefits of these businesses andassets growths, aiding in the achievement of a sustainable
society in which communities and society prosper, employment grows, and quality services continue, which in turn will
support the sustainable growth of AZN Group. This enables
us to realize our management objectives and our philosophy,

which in turn will lead to creation of value for our clients andfor society.
As times change, so do social issues and our clients'
property concerns. For new concerns and new social issues,
we envision a cycle of processes in which we, as a group of
experts, provide new solutions to help our clients develop
further. This is the value creation story of our AZN Group.
In the future, we will focus not only on succession andvalue creation around property and business, but also on
helping to create value to pass on the family's philosophy
and aspirations.

● Value creation process at Aoyama Zaisan Networks
Social issues

Business model

Va l u e c re a t i o nOutcomes・Achieve management objectives
・Create human resources
・Create new business and sustainable growth ・Enhance employees' material and mental well-being
・Build social trust

Property concerns

Aoyama Zaisan Networks

perty-related con
pro
ce
y
an
ecome social iss rns
M ve bueshaInheritance

To whom should I givemy inheritance ...?
I can’t pay
inheritance taxes ...

Concerns

We’re not prepared
for an emergency ...

We have no
successor ...

Operations

The family isdrifting apart ...

Rural property values
are declining ...

business/family
and
m
s
t
se support each other utuasllyAComprehensive
property consulting

I’m concerned about
future living expenses ...

Management

Reliable
products andservices

Preparation for
the unexpected

A reliableorganization

Smooth successionof management

Achieving happiness forour clients by enhancing
their financial, physical, andmental resources
Management andmaintenance of property

Business baseConsultants withstronginterpersonal skills

Clients

Society
iness/family) as (busset ually supporst eac nd
A mut
ho
ty
the
cie
o
r
s
Employment is safeguarded
by the company’s sustainable
development

Sustainable social growththrough asset enhancement

Smooth successionof property
Property, which is social
capital, functions effectively

Securing funds to
pay inheritance tax

When a good company
survives, good service survives

As businesses and families
prosper, local communities arerevitalized

Sustainability management
Promoting
Digital Transformation (DX)

Instilling management
philosophy

Strengthen human resources and give women
opportunities to play more active roles
Contributing
to society

Strongergovernance

Reform of work styles

Achieving optimal asset composition
Expansion of assets included in consulting

Promoting Task Force on Climate-Related
Financial Disclosures (TCFD)

Concerns and worries about assets diversifying due to the changing times
6

Aoyama Zaisan Networks ｜ Integrated Report 2022

Aoyama Zaisan Networks ｜ Integrated Report 2022

7

Our Vision

Our Strategy

Our Vision

Medium-Term Management Plan
Third Medium-Term Management Plan

Ou r V i s i on

Japan’s top comprehensive
property consulting firm supported
and chosen by many clients as“When it comes to property,
it's Aoyama Zaisan Networks”

Our vision is to become Japan's No. 1 comprehensive property consulting firm, supported by clients' whoknow, "When it comes to property, it's Aoyama Zaisan
Networks." Our Medium-Term Management Plans are formulated to realize this long-term vision.
Following the First Medium-Term Management Planin our venture phase and the Second Medium-Term
Management Plan in our growth phase, the Third MediumTerm Management Plan for the three-year period beginningin FY2022 is positioned as a period of expansion andgrowth as a comprehensive property consulting firm.
AZN Group's profits and sales grew steadily during theventure period, but from FY2019 to FY2021, which had
been positioned as a growth period, our profits, sales, andproductivity per consultant remained flat, and AZN Group
is currently experiencing something of a growth plateau.
Therefore, for our Third Medium-Term Management Plan,
we have formulated a plan with clear quantitative targets,
keeping in mind the paramount issues of increasing profitability and productivity.

With regard to operating profit, in order to be able toprovide services that exceed client expectations, we aim
for continuous annual growth of 35% in operating profit
each year. In the final fiscal year of this plan, FY2024, we
expect gross profit of 7.5 to 8 billion yen, operating income of 4.5 to 5 billion yen, and an operating profit ratioof 10%.
With respect to the 183 consultants currently on staff,
AZN aims to increase the proportion of property consulting revenue in its gross profit and improve sales by substantially increasing the number of consultants throughaggressive investment in human resources. At the sametime, we will be promoting DX to increase productivity andimprove our operating profit ratio.
To accomplish these goals, various measures havebeen formulated for the Third Medium-Term Management
Plan, based on the 4 standpoints outlined on the following page.

● Third Medium-Term Management Plan (Overview)

Our Vision
Second Medium-Term
Management Plan
(FY2019–2021)

First Medium-Term
Management Plan
(FY2014–2018)

Period of growth as a(the company
we aim tobecome)Third Medium-Term
Management Plan
(FY2022–2024)

Period of growth expansion as aJapan’s top comprehensive property
consulting firm supported andchosen by many client as “When it

property consulting firm

property consulting firm

Period of venture as acomes to property, it's Aoyama
Zaisan Networks”

property consulting firm

Aoyama Zaisan Networks started business in 1991
as a group company of Funai Consulting Incorporated.

● Shifts in operating profit in the Third Medium-Term Management Plan

4,500

Period of expansion
5,000
and growth

We have expanded our business in Japan and overseas as a consulting company~

We have operated as a property consulting company offering real estate solutions.
(million yen)

35%

providing comprehensive property-related solutions to “individual asset owners”
Growth period

and “corporate owners,” marking our 30th anniversary in 2021.

2,550

Having declared our management objectives as, "We seek to contribute to the happiness of our

Venture periodclients through the succession, operation and management of property," we will continue to make

1,464

1,603

1,094

further strides to realize our long-term vision to look after the assets of our clients and,by extension, of society, and to lead them into the future.

160
2013

445

485

2014

2015

Aoyama Zaisan Networks ｜ Integrated Report 2022

1,856
1,303

751

2016

2017

First Medium-Term Management Plan

8

continuous
growth

2018

2019

2020

2021

Second Medium-Term
Management Plan

2022

2023

2024 (year)

Third Medium-Term
Management Plan

Aoyama Zaisan Networks ｜ Integrated Report 2022

9

Our Strategy
Medium-Term Management Plan
● 4 standpoints of the Third Medium-Term Management Plan

Standpoint

1

Achieving higher quality andquantitative expansion of ourclient services, based on thetwin cornerstones of strategic
individualized services andcomprehensive property
consulting services

Standpoint#1

Standpoint2

We offer property consulting
services via smartphone andonline communication tools asstandard services

Standpoint

3

Standpoint

Growing into a consulting
group with strong
interpersonal skills

4

Proactive approach to social
contribution activities

Achieving higher quality and quantitative expansion of our client services, based on
the twin cornerstones of comprehensive property consulting services and strategic
individualized services

AZN Group offers eight strategic individualized services,
including Advantage Club®, a small-lot real estate product, and aims to improve quality and expand quantity inconjunction with its other cornerstone of comprehensive
property consulting services.
Some new clients may feel that suddenly dealing witha comprehensive suite of property consulting services is
too much. For this reason, we believe that by first making
contact with our clients through strategic individualized
services that meet their needs, and then using that as astarting point, we can smoothly connect them to our comprehensive property consulting services.
We look forward to increasing revenues by meeting client needs through the synergistic effect of these services
and by building long-term relationships.

● The relationship between strategic individualized
services and comprehensive property consulting
services

Effective realestate use
consulting#2

BeforeFamily officeservice

Regional
creative
development
consulting

Comprehensive
property consulting
services

Consultant responds to referral Consultant handles everythingfrom financial institutions, etc.
from the initial stage

Consulting on
financial instrument
services by IFA

STO (Security
Token Offering)business

Group in February 2021.
The ART system integrates and incorporates theknowledge of top consultants in various fields, includingStandpoint#3

Strategic individualized services

10

STO (Security
Token Offering)business

Consulting on financial
instrument services by
IFA (independent
financial advisors)

Regional creative
development
consulting

Family office service

Effective real estateuse consulting

Aoyama Zaisan Networks ｜ Integrated Report 2022

Ongoing follow-up

Written application

Personalized follow-up by
consultant

Division of labor × ART
systemFor clients nationwide
Online meetings × ART
systemApplication via smartphone(Advantage Club, etc.)

Utilize digital platforms

ART system

For more nationwide
client Providing
web-based consulting

Growing into a consulting group with strong interpersonal skills

For our consultants, it is of paramount importance toearn the trust of our clients in order to successfully consult
with them about their valuable assets and businesses.
To achieve this, it is essential that we grow into a consulting group that possesses strong interpersonal skills
combining integrity, kindness, and compassion. Amongthe interpersonal skills required, AZN considers a sense#4Comprehensive property consulting services

Business
succession fundApplication

AfterStandpoint

Purchase consulting

Meeting & consulting
Mainly face-to-face forclients in the Tokyo area
(online meetings also used)

Business
succession fund● ART system & web-based consulting

ADVANTAGE CLUB

Receiving inquiry(From 2022
onward)We offer property consulting services via smartphone and online communication
tools as standard services

We will aggressively promote DX to increase profitability
and productivity. The core of this approach is the ART
system, which was developed and introduced by theContact point with new client

Utilize digital platforms

Purchase
consulting

comprehensive property consulting work, and to provide
more extensive care to clients than ever before.
The system is currently undergoing improvement toprovide standard services using smartphones and online
communication tools. For example, we plan to implement
the ability to make purchases for Advantage Club, ourflagship product for strategic individualized services, via asmartphone app by the end of 2022.
We are also strengthening our direct marketing andconsidering new developments, including the use of platforms to provide a digital window into the market.

● Improving productivity and customer service with DX

AdvantageClub(independent financial
advisors)

Standpoint

inheritance strategies, business succession, and utilization of real estate. With the simple input of client data, thesystem can speedily analyze issues and present options
for strategies and measures. By utilizing the ART systemand online services, we are able to provide consulting services to numerous clients throughout Japan.
Also, by introducing the ART system, we have established a system for division of labor in consulting work.
Our inside sales team handles the initial stage of eachproject, and is able to provide standardized consulting
using the ART system. This allows our highly specialized
consultants to demonstrate their expertise, to focus onof wanting to help others—the desire to contribute to thehappiness of our clients—to be particularly essential.
In order to build up such interpersonal skills, in addition
to ideals training conducted in-house, we promote initiatives such as supporting participation of Group employees
in activities that contribute to society outside the company
too.

Proactive approach to social contribution activities

In conducting sustainable operations, it is also important that companies actively engage in social contribution
activities as part of their corporate social responsibility. AZN has been continuously making donations to theTokyo Medical Association and providing supplies to medical institutions, using a portion of the profits generated
through its business.
We will continue to make company-wide contribu-

tions through cross-functional organizations such as our
Sustainability Committee to help realize a society that sustains
many people in happiness. Specifically, as well as donating toorganizations tackling social issues such as elimination of
pet euthanasia and support for subsidized children's cafeterias, we promote our employees' own social contribution
activities and have established a new social contribution plan
as a shareholder benefit, among other efforts.

Aoyama Zaisan Networks ｜ Integrated Report 2022

11

Top Message
President’s Message

Bringing happiness to as many clients as possible
Toward three years of further growth● Shifts in cumulative total assets of Advantage Club
partnerships● Third Medium-Term Management Plan:
The 4 standpoints(100 million yen)
900
■New ■ExistingStandpoint

882.8

800

162.5
720.3

700

Our Second Medium-Term Management Plan, which included the three-year planning period from 2019 to 2021, is
now completed and we have started our Third Medium-Term Management Plan from 2022 to 2024. Here, company
president Masazumi Hasumi shares his thoughts on the Third Medium-Term Management Plan, which is positioned
as a period of expansion and growth toward the realization of our long-term vision.

DX gets underway, with the adverse
circumstances of the COVID-19 pandemic
as a springboard— What is your assessment of the Second Medium-Term Management Plan, which came to an end
in FY2021?
Since my appointment as company president in 2008, I
have been striving to make us Japan's No. 1 comprehensive property consulting firm, supported by clients who
know, "When it comes to property, it's Aoyama Zaisan
Networks."
The three years of our Second Medium-Term Management Plan, which started in 2019, were positioned as aperiod of growth as a property consulting firm, as well asa period for improving our interpersonal skills and arming
ourselves with technology in preparation for a future period of expansion and growth.
In 2020 and 2021, property consulting sales were impacted by the COVID-19 pandemic and growth in thisarea was sluggish. Although the AZN business model
involves holding seminars and providing individual consultations to participating clients on an outsourcing basis, the COVID-19 pandemic made it impossible to holdface-to-face seminars, and face-to-face communications
with partner financial institutions and clients were also
limited, resulting in fewer points of contact with clients. It
also prevented us from fully demonstrating our consulting

President

Masazumi Hasumi
12

Aoyama Zaisan Networks ｜ Integrated Report 2022

Expand clients
Increase added value

Comprehensive
property
consulting
services#2

Increase productivity
Standardize digitally-enabled
property consulting services

627.5

42.5
466.8

400

720.3

65.2

509.3
500

Standpoint

53.0

574.5

Strategic
individualized
services

92.8

627.5
600

#1

574.5

Promote DX

509.3
HR: Recruitment & training of consulting personnel

2017
2018
2019
2020
2021
December December December December December

capabilities to our clients. On the other hand, strong performance in real estate transactions such as Advantage
Club, which was strategically expanded to incorporate
new clients, made up for this, and we were able to finish
FY2021 on an upward trend in sales and profit.
Despite the COVID-19 pandemic, our DX initiatives
have progressed beyond expectations, although one ofthe principal goals of our Second Medium-Term Management Plan was to arm ourselves with better technology.
We have set up our own studio, started online seminars,
and established a framework for online communications
with our clients, including web conferencing. Additionally, we have developed a new system that centralizes theknowledge accumulated by our Group to improve the efficiency of consulting operations, enabling rapid delivery ofhigh-level services to our clients. This is the ART system,
which was officially launched in 2021.

4 standpoints for recovery towarda growth trajectory— Aside from the impact of the COVID-19 pandemic, what other changes have you seen in the businessenvironment?
Since the controversial "20 million yen retirement savings problem" in 2019, interest in asset management has
been growing. An increasing number of households are
selling their income-producing real estate properties toconvert it into cash, using it to cover living expenses.
In addition, the number of consultations with our Grouphas been increasing, partly due to the COVID-19 pandemic, as the difficulty of finding successors as well as
declining profitability make it difficult to continue businessindependently, and people are increasingly choosing toOrganization: Division of labor for consulting

Improving interpersonal skills

Growing into aStandpoint consulting groupwith strong
interpersonal skills#3Standpoint#4

Proactive approach
to social contribution
activities

pass on their businesses to third parties.
— Please explain the Third Medium-Term Management Plan, which was initiated amid such circumstances.
In our Third Medium-Term Management Plan, which wehave positioned as a period of expansion and growth
as a property consulting firm, we will focus on increasing
new clients, which was an issue during the Second Medium-Term Management Plan, and on strengthening ourhuman resources. Specifically, we will strengthen our position from four standpoints.
— What are these four standpoints? Please explainthem in order.
The first perspective is improving the quality and expanding the quantity of our services to clients through thetwin cornerstones of strategic individualized services
and comprehensive property consulting services. Up
to now, comprehensive property consulting services havebeen our main point of contact with clients, but responding to individual needs makes clients aware of our consulting services and encourages them to entrust us withcomprehensive property consulting services. This is thesort of flow we aim to create. We will also further expand
our partnerships with partners who possess numerous
points of contact with clients and strengthen our services in the field of real estate, where we can leverage our

Aoyama Zaisan Networks ｜ Integrated Report 2022

13

Top Message
President’s Message
group's strengths. We believe that by working in tandemwith comprehensive property consulting services, we will
be able to provide high-quality services to our clients froma total optimization standpoint.
In the field of comprehensive property consulting, inaddition to succession, operation, and management ofassets for individual asset holders in the Tokyo metropolitan area, we are strengthening our consulting services
to provide total succession, operation, and managementof businesses and assets for small- and medium-sizedbusiness owners to enable our clients’ families and businesses to develop and prosper.
In terms of strategic individualized services, weplace particular emphasis on family office services. We
work with regional banks and other partners nationwide
to create a framework for the development in perpetuityof high-quality family businesses throughout Japan, both
listed and unlisted.

Promoting DX and strengthening humanresources to support the next generation— What is the second standpoint?
This is offering property consulting services utilizing
smartphone and online communication tools as standard
services. We will continue to increase our productivity bypromoting DX, hiring and training human resources, andoverhauling our organizational structure.
To this end, we will invest more aggressively in humanresources and systems from 2022 to enhance our humanresources and business infrastructure. For example, weplan to implement the ability to make Advantage Club
purchases via a smartphone app by the end of 2022.
Shifting over to the app allows us not only to increase thenumber of new clients and increase productivity, but alsoenhance convenience for our clients.
— As DX gets underway, aren’t you also promoting
the hiring and training of human resources, which isone of the foundations of business?
Recruitment and training of human resources means, inour case specifically, increasing the number of consultants
who will support the future of our group.
Consultants need to possess wisdom, capacity for action, and interpersonal skills. Our group's role is to ensure
our clients’ satisfaction with total optimization solutionplans by applying these three capabilities to any issues
they are facing.
However, as the business environments in which ourclients are involved change year by year and as the issues
they face become more complex, the scope of expertise
required keeps expanding. In order to meet a diverse
range of needs, consultants need to be more knowledgeable and experienced than ever before.
We actively recruit dedicated specialists such as tax accountants, accountants, and lawyers with an interest inproperty consulting, and we keep raising the level of our

14

Aoyama Zaisan Networks ｜ Integrated Report 2022

It is important to achieve total
consulting services by acquiring broader knowledge andutilizing the ART system. We are also instituting a systemfor division of labor to enable our consultants to concentrate on highly specialized consulting.
In addition, we are constructing our own in-house training program in anticipation of expanded hiring. We planto acquire assistance from external experts, extract the
specialized knowledge necessary for consulting, packageit, then offer it as an educational program for our consultants. To drive further business growth, we will actively
train and appoint young people in leader roles, create apleasant work environment, and give women opportunities to play more active roles.
— Why have you chosen to focus on women?
In order to resolve issues related to our clients' assets,
we need to provide consulting services that go beyond
the concerns of the client's assets, encompassing thefeelings of the client's family too. We believe that in order to meet the diverse values and needs of our clients,
it is important to have a diverse group of consultants. Although the number of female consultants at AZN is still
low, whenever we communicate with family members beyond the head of the family, some clients find it easier todiscuss matters with a female consultant. In the modernage, demand for female consultants is increasing. I believethat women will find this job rewarding, as they can easilyadjust their hours, help other people, and gain expertisethat is sure to prove useful personally. We are also putting
in place measures to create a better work environment for
women, such as childcare support.

Interpersonal skills of employees: afoundation for sustainable management— Could you tell us the third standpoint?
The development of our Group depends on our ability
to contribute to the happiness of our clients by solving
their asset-related problems. Two crucial qualities requiredof consultants are the mindset to work for the benefitof others and the ability to empathize with the feelings of clients. It is important to properly understand ourclients' problems, desires, concerns, and worries, andhow we can contribute to meeting their true demands.
We have been helping clients to sustain their families andtheir businesses in perpetuity for generations. It is simply
not possible to provide consulting services without building a foundation of trust. In order to earn the trust of ourclients, it is essential that we grow into a consulting groupthat possesses strong interpersonal skills. Having interpersonal skills means being able to think about what ourclients really need and search for solutions with kindness,
warmth, and sincerity—in other words, an altruistic mentality.
To that end, we need the strong desire to serve ourclients and we need wisdom and capacity for action toresolve problems, all based upon strong interpersonal

skills enabling us to prioritize the happiness of our clients.
The value of our group is the total sum of the interpersonal skills possessed by every single one of ourmembers. Raising the level of our interpersonal skills isessential to the growth of our business. During the Third
Medium-Term Management Plan period, we will be working to strengthen this aspect too.
— A new in-house Sustainability Committee has
been established. Development of interpersonal skills
is one objective of the Committee, apparently.
The Sustainability Committee, which I chair, has five
subcommittees: TCFD, Instilling Management Philosophy
and Strengthening Human Resources, Changing Work
Styles, Social Contribution, and Strengthening Governance. Each of these subcommittees has formulated
goals and plans to achieve their respective goals, and asystem has been established to ensure that information isshared regularly and steadily acted upon, including by theCommittee and the Board of Directors.
We added Changing Work Styles because we believethat unless our consultants are healthy, both physicallyand mentally, they will not be able to develop strong interpersonal skills and provide outstanding consulting services.
— So the Sustainability Committee plays a central
role in the fourth standpoint driving the Third Medium-Term Management Plan?
The fourth perspective is actively promoting social contribution, which is one of the segments of the Sustainability Committee. We continuously donate a portion of
our earnings to organizations tackling social issues suchas support for subsidized children's cafeterias and elimination of pet euthanasia. At the same time, we hope byengaging in social contribution activities, our employees
will gain empathy with the pain of others and will become
more kind to other people. Many of these activities havealso been conducted in the past, but have been restructured at this time.

Responding to expanding consulting needsfrom a total optimization standpoint— Can you talk about your outlook for the future?
From this year, the baby boomer generation will truly
become elderly, and their needs for property succession,business succession, and property management are expected to increase over the next couple of decades.
On the other hand, there are still very few consulting
firms that take into account total optimization as outlined in our five standpoints on comprehensive property
consulting. Many consulting firms provide only partial optimization in their respective areas of expertise, and do
not meet the real demands of their clients.
— So a gap exists between needs and services?
I believe that Aoyama Zaisan Networks needs to fill thisgap.

optimization by applying
wisdom, capacity foraction, and interpersonal
skills to each client's
own issues.

● 5 standpoints on comprehensive property consulting
services

successionof management
1 Smoothfor
5 Preparation
the unexpected

and
4 Management
maintenance ofproperty

successionof property
2 Smoothtax
3 Securing
payment funds

To resolve our clients' issues, it is essential that we
maintain a mindset of full commitment to our clients andtheir happiness, as well as the happiness of those aroundthem. Our role lies in ensuring that consulting based on
this concept takes firm root in Japan. We are also stepping up our efforts to raise our profile so that our clients
all agree, "When it comes to property, it's Aoyama Zaisan
Networks." We are working with our partners to create asystem for providing happier business succession, prop­
erty in succession, and property management services
than ever before.

Aoyama Zaisan Networks ｜ Integrated Report 2022

15

CFO Message
CFO’s Message

Aiming for 100 years of dividend increases
by strengthening our property consulting
systemDirector, Managing Executive Officer, and General Manager of Corporate Planning Division Shintaro Hashiba

Aoyama Zaisan Networks has entered a period of expansion and growth toward its long-term
vision of becoming Japan's No. 1 comprehensive property consulting firm supported by clients
who know, "When it comes to property, it's Aoyama Zaisan Networks." CFO Shintaro Hashiba
discusses current circumstances and future propects from a financial perspective.
Favorable business environment expected to continue— Performance in 2020 and 2021 was affected by the
COVID-19 pandemic, but could you tell us about yourlonger-term outlook for the business environment?
I think that the business environment is looking good.
With the increase in the number of people subject to inheritance tax following the 2015 revision of the taxation
law, we are receiving a lot of inquiries from wealthy individuals. Business performance is becoming increasingly polarized, and the respective needs for business succession
by family members or employees, M&As, and businessclosures are all growing. Moreover, the value of assets
in rural areas is declining and companies are transferring
assets to Tokyo. The question of how to pass on assets
and ensure the survival of companies and of families has
become a key social issue throughout Japan.
For more than 30 years, AZN has taken a different approach in providing services to address these social issues and client needs. We have accumulated a great dealof expertise, which has enabled us to build a unique position in the property consulting field. For regional matters,
we have established an AZN National Network with accounting firms, and have strengthened cooperation with

regional financial institutions and other organizations. We
have also upgraded our own systems, making it possible
for us to deliver our property consulting services throughout Japan.
— Amid these circumstances, this year marks thestart of the Third Medium-Term Management Plan.
Could tell us more about financial policies?
In 2009, AZN posted a significant loss due to the global
financial collapse. This led to a significant shift in our business model—from the pursuit of short-term profits to abusiness model of steadily accumulating profits throughproperty consulting by building long-term relationships
with our clients. After 10 years, we believe we have built
a financial structure that is capable of generating stableearnings.
As its corporate slogan, AZN proudly declares "We willremain your best partner in 100 years." This means that
we will have to continue providing our consulting services
across successive generations. With this in mind, we havemade it our top financial priority to establish a level of cash
and cash equivalents that will allow us to continue providing property consulting services for several years without
interruption, even in the event of another major economic
risk.

● Dividends & dividend payout ratio● ROE (return on equity)■ Interim ■ Year-end ■ Commemorative(Units: yen)

25.0
2.5

26.5

19.5
15.0

28.0

17.0
14.0

31.0

18.0

16

13.0

10.0

11.0

38.3

35.7

80.3

45.7

44.3 (%)

2018

2019

2020

2021

2022 (forecast)

45.0

FY

2017

22.2

22.0

15

8.5

Payout ratio

25

31.1

20

16.5

12.5

7.0

28.6

30

9.5

5.5

(%)
35

Aoyama Zaisan Networks ｜ Integrated Report 2022

10

12.7

5
0

2017
December

2018
December

2019
December

2020
December

2021
December

Building from a financially sound base,we will strive to improve profitability andminimize capital costs, and work hard toreturn profits to shareholders by continuously increasing dividends.

It is also essential for our continued growth that shareholders hold shares of the company's stock in a stablefashion. In FY2021, we increased dividends for 11 consecutive fiscal years, and we intend to continue our policyof increasing dividends. This may sound absurd, but webelieve that if we are to realize 100-year property consulting, we should also aim for consecutive dividend increases for the next 100 years.
Focus on building the foundation
for corporate continuity— From a financial perspective, what are the key
points of the Third Medium-Term Management Plan?
We intend to continue to follow our policy of financial
soundness and achieve both sustainable growth andshareholder returns, while remaining conscious of capitalefficiency.
First is sustainable growth. The wellspring of AZNGroup's profits is property consulting, which accounts
for 63.4% of our gross profit. In our Third Medium-Term
Management Plan, which runs until FY2024, we are seeking 35% growth in operating profit, centered on growth in
the property consulting business.
In FY2022, the first fiscal year of this Plan, we will workto establish strategic individualized services, secure personnel for business projects, and build systems to meetthe needs of new clients for property succession, management, and business succession, starting with strategic
individualized services such as Advantage Club. In order
to secure the human resources we will need over the next
three years, our HR investment expenses in FY2022 will
be more than 20% of the previous fiscal year's level. We
will also focus on instituting divisions of labor to increase
productivity and customer service, improving the officeenvironment, creating a better working environment for
women to take on active roles in the company, and investing in systems. We will also expand the functions of theAdvantage Club application and the ART system, which
we started operating in the previous fiscal year, and develop a real estate management system for effective utilization of land, thereby promoting the DX transformation of
our property consulting services.

Meanwhile, strong demand for Advantage Club continues to be seen—in FY2021, we exceeded our goal of
15 billion yen, generating 16.25 billion yen. We will continue to strengthen our alliances with real estate companies,
REITs, financial institutions, and accounting firms in orderto achieve our cumulative goal of 30 billion yen from partnerships in FY2022.
In terms of shareholder returns, we give comprehensive
consideration to our financial condition, cash flow, andrevenue prospects, and place the highest priority on continuously increasing dividends, aiming for a dividend payout ratio of 50%, return on equity (ROE) of 20%, and dividend on equity (DOE) of 10%. In FY2021, we achieved a
dividend payout ratio of 45.7%, ROE of 22.0%, and DOEof 10.1%, and we aim to achieve a DOE that exceeds thecost of capital.
Also, starting last fiscal year, we have set internal targets
for return on invested capital (ROIC) for each business division, seeking to maximize our corporate value by improving
returns on capital. We believe it is important to first secure
ROE by increasing revenues, as we expect a temporary
increase in debt-to-equity ratio (D/E ratio) due to our organizational restructuring, which includes the launch of subsidiaries to provide strategic individualized services, as wellas our focus on Advantage Club business. Based on our
approach of maintaining financial soundness, we will workto achieve the Third Medium-Term Management Plan byboth improving profitability and minimizing capital costs.
Working for the future happiness of clients
My role is to work to solve problems while at the sametime maintaining financial soundness and investment discipline appropriate for a consulting firm, while promoting
growth investments that place the highest priority on human capital investment. We aim to continuously expand
profits and increase the satisfaction of all stakeholders,
including clients, shareholders, business partners, andemployees. We will also steadily undertake ESG initiatives, driven by our Sustainability Committee, to help resolve materiality issues, and strive to improve not only our
corporate value as expressed in figures, but also the kindof corporate value that society truly calls for.

Aoyama Zaisan Networks ｜ Integrated Report 2022

17

Our Value Drivers
Reliable products and services
The role of comprehensive property consulting is tosmoothly facilitate inheritance and business succession
and to achieve the optimal property structure to perpetuate families and businesses.
Until now, AZN has focused on providing comprehensive property consulting services, but in order to expand
our points of contact with new clients, we have establisheda system of eight strategic individualized services that will

see wider use in our Third Medium-Term Management
Plan.
In collaboration with leading partners, we intend to increase the added value of each strategic individualized
service, and by undertaking DX, we are making improvements to make our services both easier to use and more
extensive.

Purchase consulting

Family office service

In our purchase consulting services, we not only support purchases of real estate—we also understand eachclient's unique purchasing objectives and provide consistent support from property selection, purchase, management of holding period, consideration of sales timing,
selection of buyers, to post-sale follow-up.

For a family business to endure, maintaining andstrengthening the supportive relationship between thecompany and the founding family is crucial. We provide
long-term support for creating and operating mechanisms
to maintain and strengthen the family unity that forms thebasis of this supportive relationship, through workshops,
preparation of family charters, and support for the operation of family councils.

ADVANTAGE CLUB❶●Businessparticipants

Carry out
administrative work
Managing Director
Aoyama Zaisan
Networks

Regional creative development
consulting

Tenants● Examples of land utilization methods● Features of AZN Group's

Reclassification

Aoyama Zaisan Networks

Real estate
information

Store location
information

Aoyama Zaisan Networks ｜ Integrated Report 2022

Contributing
to society

Individual growth& development

Non-property fields❸ Business●

Synergistic effectmanagement &management offamily assets

Property field

We develop and operate public real estate throughpublic–private partnerships, utilizing AZN’s expertisein specified joint real estate ventures and financing.
Specifically, we commercialize underutilized land owned
by local governments and other entities through more
effective utilization, with the aim of revitalizing regional
communities. AZN and its clients also contribute to thehealthy development of local economies through theseinvestments. The first project of AZN Group's regional development, Komatsu A×Z Square, a complex facility next
to JR Komatsu Station in Ishikawa Prefecture, opened in2017. The second is a land use project to the west of
Tsuruga Station in Fukui Prefecture. This project is part of
the TSURUGA POLT SQUARE otta complex, scheduled
to open in early September 2022.

Consulting on financial instrument
services by IFAs*3
Aoyama Financial Service, our consolidated subsidiary,
assists clients with optimal asset management to meettheir objectives from a comprehensive, long-term standpoint based on solid analysis of the current situation.

Comprehensive
property consulting

Clients

Business succession fund
We offer optimum plans for companies that are considering closure due to difficulties with business succession.
Always pursuing the possibility of business succession
through downsizing, we offer measures to preserve management assets by systematically providing employment
even in the event of business closure.
Operating profit surplus

Relatives
Board member [Management buyout (MBO)]

The question is
who will take over?

Third parties [M&A]Management profit deficit
Decision to
downsizing or
discontinue
prioritized oversuccessors

Downsized succession
Pursuing possibility of businesssuccession through downsizing

Business discontinued
Proposing measures to minimize burden
on management and employers

STO*4 business
The revision of the Financial Instruments and Exchange
Act in 2020 made it possible to issue digital securities, andwe plan to partner with Hash DasH Holdings, which possesses blockchain technology, to offer income-producing
real estate to clients 24 hours a day, 365 days a year, insmall amounts. AZN Group will source income-producing
real estate to back the digital securities sold by our partnering brokerage firms, thus providing a new product.

Financial instrument
consulting

Hash DasH

Smartphone
Investments

Matching
Use of ART system*1 Share of cumulative total assets of voluntary partnerships under the Act on Specified Joint Real Estate Ventures (as of December 31, 2021) *2 As of June 30, 2022

18

Store location information

Fixed-term lease, exchangeof equal value

Tenant companies

Total coordinationof store openings

Residential(detached house rental)

Comprehensive property consulting(proposals for effective utilizationof real estate)

Residential (apartment, condo)

Landowners
Request for utilization of real estate

Warehouse❷●

FamilygovernanceState of management?

skewed by a bias toward their respective areas of expertise. On the other hand, since AZN assigns each job toproperty consulting teams with specialized skills, we areable to provide one-stop proposals featuring total optimization methods of utilization best suited to the land, after
first confirming the overall situation of the property, taking
into consideration various conditions such as verificationof cash flow and selection of construction providers, design companies, construction companies, and operatingcompanies.

Childcare, education❻●

The one-family
philosophy

Succession ofbusiness and assets

We assist our clients in planning and implementing effective utilization of land in the Tokyo metropolitan area.
AZN's team of experts in effective land utilization works
to gather information and consider problems related toyour land or buildings, such as underutilized land, unprofitable land, vacancy issues, or deteriorating buildings, andproposes the best utilization of real estate to solve yourproblems.
In general, proposals from companies involved in theeffective use of land tend to be partially optimized,

WelfareSale❺●

Effective real estate use consulting

Medical

Ownership

Eligible real estate

Depending on the voluntary partnership, the type of real estate lease may vary.

Retail stores

Purchase fromproposal

❹
●

Rent

Distributionof profit

Voluntary
partners

Specified joint realestate ventures

Acquisition

Voluntary partnership

Financialinvestment

Based on the Act on Specified Joint Real Estate Ventures, this is a real estate leasing system that jointly purchases high-value real estate in central Tokyo and receives
income from real estate leasing. Clients can invest fromunits of 10 million yen, stable income can be expected,
and the real estate management system is unparalleled.
As of June 30, 2022, AZN had 60 partnerships with cumulative total assets of more than 100 billion yen and No.
1 market share.*1 Our target for 2022 is 30 billion yen of
new investment. In order to make our services available to
new clients, we have been working with financial institutions since 2021, and have formed partnerships with 35
institutions*2 to date. As the market leader, we will continue to play a role in driving the market.

Analysis of
Current Situation

Collaboration*3 IFA: Independent Financial Advisors*We will only share
information subject tothe client’s consent.

Dividends
RealestateShift Provided throughto ST securities markets

Broad base ofindividual investors*4 STO: Security Token Offering

Aoyama Zaisan Networks ｜ Integrated Report 2022

19

Our Value Drivers
A reliable organization
which tax accountants and accountants provide tax support; the Legal Division, in which legal experts and otherprofessionals provide legal support; and the Business Development Division, in which tax accountants and a wide
range of other professionals consider projects, constructproduct schemes, and provide management.
With more than 150 nationally certified professionals on
staff, AZN is able to provide a one-stop solution to all ourclients' issues by combining the unparalleled capabilities
and wealth of experience of this group of experts with education programs to further enhance their capabilities.

Aoyama Zaisan Networks is a property consulting company that not only provides consulting services, but is also
capable of delivering proposals for solutions.
This is made possible by two specialized in-house divisions—the Consulting Division, which provides consulting
services, and the Real Estate Division, which is responsible for the creation, operation, and management of realestate products that meet the needs of our clients. Eachdivision employs many specialized personnel.
Beyond these, AZN has several specialized units that
support consulting—the Consulting Advisory Division, in● Aoyama Zaisan Networks Group Structure

AZN Group has consolidated subsidiaries, affiliated corporations, and joint ventures to provide one-stop solutions
to a broad range of client issues. Our consolidated subsidiaries’ fields of expertise include region-specific property consulting, real estate management, global comprehensive property advice, international real estate productdevelopment, financial instrument brokering, and assistance with non-property succession.
Affiliated corporations include law firms, tax accountant
firms, and social and labor insurance firms, as well as joint
ventures with partners who have strengths in property

and business succession. This affords our clients a broad
choice of the best options.
Our Group has also established the AZN National
Network, which connects accounting and tax accountant firms located throughout Japan. As of June 2022,
the number of member firms had reached 96, enablinghigh-quality AZN comprehensive property consulting andeight strategic individualized services to be available
nationwide in Japan.
We intend to continue strengthening our organizationand our network to improve the quality of our services.

● Member locations of AZN National Network

96 locations nationwide
As of June 2022

Comprehensive property consulting for property succession, operations, and management
Education

Consulting Department

Utilizing the ART system
Consultant Training Program● Consulting Education Center●●

The AZN National Network is a system that connects
Japan’s leading accounting and tax accounting firms toprovide AZN Group's high-quality comprehensive
property consulting and eight strategic individualized
services throughout the entirety of Japan.

Hokkaido& Tohoku

10Specialized departments to support consultants
Real EstateBusiness Department

Business
Development Division

Consulting Advisory
Department

Formulation, operation, andmanagement of real estate
products tailored to client needs

Support from tax accountants
and others in structuring andmanagement of various products

Tax-related support fromtax accountants,
accountants, and others

Consolidated subsidiaries

locations19

locations

Legal support from legal
experts and others

Chugoku& Shikoku

Affiliated firms
Law firms, certified public tax accountancy
firms, social and labor insurance firms

Nihon Shisan Souken Co., Ltd.

Aoyama Zaisan Networks Kyushu Co., Ltd.

Comprehensive property consulting services
for individual and corporate assets

Comprehensive consulting services related
to business succession and asset utilization

Aoyama Financial Service Co., Ltd.

Aoyama Family Office Service Co., Ltd

Proggest Certified Social Insurance
and Consultant OfficeFinancial instruments intermediary business

Consulting in non-property fields forfamilies owning family businesses

Major tax accountancy firms,
major law firms, etc.

Aoyama Estate Co., Ltd.

Aoyama Zaisan Investments Co., Ltd.

General property management (PM)operations, including real estate solution operations

Financial and accounting consulting services
led by certified public accountants
and licensed tax accountants

Aoyama Wealth Management
Pte.Ltd.

PT Aoyama Zaisan Networks
INDONESIA

Comprehensive overseas property advice

International real estate product development

3 other companies

CentralJapan

Legal Department

16

locations
Eastern
Japan (Kanto)

Aoyamagodo Tax Corporation31

Zeimu Sogo Tax Corporation(Certified Public Tax Accountants)

locationsWestern
Japan (Kinki)

9locations

Joint venture companies
Shinsei Aoyama Partners Co., Ltd.
Management of business succession funds
Investment by Shinsei Bank Groupand our Group (50% each)

Kyushu& Okinawa

Next Navilocations11

Comprehensive consulting for business succession
and post-succession
Investment by Nihon M&A Center Holdings Inc.
and our Group (50% each)
As of August 1, 2022

20

Aoyama Zaisan Networks ｜ Integrated Report 2022

Aoyama Zaisan Networks ｜ Integrated Report 2022

21

Our Value Drivers
Consultants
Our strengths lie in expert insights and interpersonal skills
Our consultants, who are professionals in tax, finance,
real estate, and other fields, serve as the face of Aoyama
Zaisan Networks and provide consulting services directly
to our clients. We employ 183 consultants (as of the endof FY2021), which is approximately 1.8 times the number
at the end of FY2014.
The comprehensive property consulting services that
our consultants provide have two distinguishing characteristics.

Consultant
profileWith abundant expertise and experience, we
accompany your family throughout life’s journey

These days, there is a lot of mixed, confusing information about property succession for wealthy families andbusiness succession for family businesses. As a result,
we’ve seen an increasing number of incidents in which
well-meaning actions taken by individuals have resulted
in problems for them, and they have come to us for advice. For precisely this reason, Aoyama Zaisan Networks
consultants are required to possess a broader range ofknowledge, balance, presentation skills, and the ability tothink from the client's standpoint than ever before.
We recently consulted with a client who, together withhis wife and two children, owns real estate in the city center and shares in his own company. At first glance, theconsultation seemed to be about inheritance strategy,
including utilization of real estate. A major bank had suggested a loan to finance the construction of a building.
However, when we asked him about his actual concerns,
we discovered something different. What would happen
to his assets and his company when they were passed
on to the next generation and the third generation? Thiswas what he was worried about. We proposed a plan tosplit the company between the elder son’s family and thesecond son’s family in the future, based on our 5 standpoints, and the client was satisfied.
In this client's case, constructing the building might
have been better purely in terms of short-term profit.
However, at AZN, we believe it is crucial to give our clientsa clearer view of the future. Our goal is to set our clients
upon a path that will ensure their families’ wellbeing for the
next 100 years. We firmly believe that our responsibility as
consultants is fulfilled only when our clients are satisfied
with our solutions.
We are proud to say that no other property consulting
22

The first is achieving total optimization by combining theinsights of teams of experts. Succession, operation, andmanagement of property and business span very diverse
fields, including tax, legal, insurance, real estate, and management. If each specialist provides advice only in his or her
own respective field, inconsistencies can arise. However,AZN is able to propose and support the total optimizationof succession, operation, and management planning and implementation that takes into consideration all of these fields.

Aoyama Zaisan Networks ｜ Integrated Report 2022

Consulting Business Division I
General Manager of Business Division I

Takehiro Aramaki
After graduating from university, he worked for a bank and a real estate
sales company before joining AZN in 2004. With qualifications as both afinancial planner and real estate transaction specialist, he is well versed
in finance and real estate matters. He has worked on many inheritancestrategies utilizing real estate, ranging from owners of farmland to ownersof metropolitan buildings. He specializes in planning solutions to complex
problems such as business succession and asset management.

firm is so well versed in tax, legal, and real estate matters,
and none is as able to accompany clients throughout theirlives. In fact, we often hear clients say that only Aoyama iscapable of providing such complex consultation services.
To win such praise from our clients, we put a great dealof effort into training our younger personnel. We are confident that when they mature, they will initiate a leap forward to AZN earning even greater trust.

Our consultants' outstanding expertise, coordination
skills, and wealth of experience enable us to provide suchconsulting services. Moreover, our Consulting Advisory,
Legal, and Business Development Divisions, which include certified public accountants and tax accountants,
provide strong backup with advanced expertise.
The second distinguishing characteristic is our interpersonal skills. There is no single correct way to pass
on your property or business. Perhaps you want yourchildren to take over your business, or you want to liquidate it in your own time. Some people want to focus
their wealth-giving on those who will succeed them, while

Consultant
profileothers want to leave their wealth equally to all their children. What’s important is seeking the best for each client,rather than any single logical correct solution. To achievethis, it is essential to have the interpersonal skills to put
ourselves in each client's position and to work together
with the client. AZN focuses on instilling interpersonal
skills, and our consultants possess not only specialized
expertise but also strong interpersonal skills.
This system is what enables us to provide 100-year
property consulting to deliver satisfaction not only to ourclients personally, but also to the next generation and on
to the third generation.

Experienced teams standing by to solve complex
problems

Aoyama Zaisan Networks also provides consulting services on business and property succession for large corporate owners and other clients with large-scale assets.
The issues faced by these clients are extremely complex. Not only do they have large assets and need to takecareful steps to prepare for succession of these assets,
but in many cases, they have built up a variety of disparate partial optimization measures, making it difficult tosee a path forward to total optimization. Furthermore,
the taxation systems involved are both extremely difficult
to comprehend and frequently subject to revision, so it isno simple matter to find the best solution for each client
based on the most up-to-date information. In fact, manyof our clients come to us saying, "I just can't find a solution
anywhere else."
Our mission is to propose solutions to the problems
faced by these clients. To solve a complex problem, weneed to be able to identify where the problem lies. Thisskill can only be cultivated by maintaining a close connection to the client and accumulating experience. Not
only do we have teams of experienced personnel, but wealso have mechanisms for sharing those experiences anddeepening our knowledge. Above all, we have the mindset of wanting to solve problems.
Property and business succession always involves
extremely personal aspects of our clients' lives. For thisreason, emotion, rather than rationality, is often the key
to the solution. No matter how advanced artificial intelligence (AI) technology becomes and how much economic
rationality it can offer, AI remains incapable of addressing
the emotional aspect. In such cases, actual people needto exercise their capabilities as human beings. Ultimately,
what is required is the mindset that says, "I want to solve

Consulting Division II
Second Group Manager, Business Division I

Junya Hiraoka
Joined AZN in 2018. He previously worked for a leading firm, where he wasinvolved in various tax filing services, tax investigations, prior confirmation
work, and M&A and business succession consulting with a focus on
restructuring. A licensed tax accountant, he specializes in structuring
matters and advising owners of listed and large unlisted companies inresolving complex issues related to business and property succession.

this client's troubles."All of our consultants possess this mindset. We aresometimes called upon to solve difficult problems, but themore difficult the problem is, the happier we feel because
we make our clients happy when we solve it.
In the future too, Aoyama Zaisan Networks will continue
to grow by serving clients who are facing difficult, complex
concerns.

Aoyama Zaisan Networks ｜ Integrated Report 2022

23

Our Sustainability
Introducing the Board of Directors
Director

Masazumi Hasumi

Masayuki Yagi

Takeshi Matsuura

Hideo Matsuda

Michihiro Nagasaka

Haruo Shimada

President

Director, Managing Executive Officer

Director, Managing Executive Officer

Director, Executive Officer

Director

Director Outside

August 1983
Joined Aoyama Audit Corporation
November 1991 Joined Yamada & Partners Accounting
OfficeDecember 1996 President of Proggest Co., Ltd.
(company name changed to Proggest
Holdings, Ltd. in July 2005)
July 2005
President of Proggest Co., Ltd. (current:
Aoyama Zaisan Investments Co., Ltd.)
September 2008 Director of the Company
October 2008
President
August 2016
Business Succession Navigator
Corporation(currently Next Navi), President
June 2017
PT Aoyama Zaisan Networks
Indonesia, Director (current position)
March 2018
Chairman of Nihon Shisan Soken Co.,
Ltd. (current position)
October 2020
Aoyama Financial Service Co., Ltd.
Representative Director
January 2021
Aoyama Family Office Service Co., Ltd
President (current position)

April 1990
September 1991
March 2006

April 1991
May 1995

April 1984

April 1985
March 1992
December 2010

January 2011
March 2013
March 2014

January 2021

June 2021
January 2022
March 2022
March 2022

Joined Murakami Corporation
Joined the Company
Director, Executive Officer, and Manager of First
Business Department
Executive Officer of the Company
Manager of Individual Asset Consulting Department
Director, Executive Officer, and General Manager ofBusiness Division
Director, Managing Executive Officer of theCompany
Director, Executive Officer, and General Manager ofBusiness Division
Director, Managing Executive Officer of theCompany
General Manager of Business Division andGeneral Manager of Real Estate Division II
Business Succession Navigator Corporation(currently Next Navi), Director
Director, Managing Executive Officer, and General
Manager of Administration Division of the Company(current position)
Director of Aoyama Estate Co., Ltd. (current
position)
Director of Aoyama Zaisan Investments Co., Ltd.
(current position)

October 2000
January 2005
January 2006
March 2007
January 2011
March 2014
March 2016
June 2017
January 2021
January 2022

Joined Daiwa House Industry Co., Ltd.
Joined Nissho Iwai Real Estate Corp. (current: Sojitz
Corporation)
Joined the Company
Executive Officer, Manager of Real-estate
Department
Funai Estate Co., Ltd.
(currently Aoyama Estate Co., Ltd.)
President
Director, Executive Officer, and Manager of Business
Division 6
Executive Officer, Manager of Real-estate
Department
Director, Executive Officer, and General Manager ofReal Estate Division of the Company
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division
Director of Shinsei Aoyama Partners Co., Ltd.
(current position)
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division I
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division (current
position)

Joined Sato Sumio Zeirishi Jimusho(current: Meinan Keiei Tax Corporation)

December 2014 Representative Director of Meinan Zaisan
Consultants Co., Ltd.
January 2018
Joined the Company
Executive Officer of the Company
General Manager of General Information
Network Division
March 2018
Director, Executive Officer
General Manager of General Information
Network Division
October 2020
Aoyama Financial Service Co., Ltd.
Director (current position)
January 2021
Aoyama Zaisan Networks Kyushu Co.,
Ltd. Director
January 2022
Director, Executive Officer
General Manager of General Information
Network Division (current position)

March 2014
April 2015
July 2021
March 2022

Joined Wakabayashi Law Office
Joined Nihon M&A Center Inc.
Manager of Business Promotion
Department
Outside Director of the Company
Manager of Sales Support Department,
General Planning Division of Nihon M&A
Center Inc.
Business Succession Navigator
Corporation (currently Next Navi),
Director (current position)
Director of the Company (current
position)

April 1975
April 1982
March 1986
June 2000
March 2007
April 2007
May 2015
January 2016
April 2017
February 2021

Independent

Associate professor of Faculty of
Economics, Keio University
Professor of Faculty of Economics, Keio
University
Visiting professor of Massachusetts
Institute of Technology
Research Center for Advanced Scienceand Technology, the University of Tokyo
Visiting Professor
Outside Director of the Company (current
position)
President of Chiba University ofCommerce
Outside Director of Okaya & Co., Ltd.
(current position)
President of Shimada Sogo Kenkyujo(current position)
Chairperson of the Board of Trusteesof Tokyo Metropolitan Public University
Corporation
Outside Director of Tech I.S. Co., Ltd.
(current position)

Audit & Supervisory Board Member

Hiroyuki Fujita

March 2018

Audit & Supervisory Board Member Outside
April 1989
August 1995
October 2000
April 2004
March 2018
March 201824

Takaomi Ogawa

Shintaro Hashiba

Shinji Shimane

Keiji Watanabe

Director, Managing Executive Officer

Director, Managing Executive Officer

Director, Executive Officer

Director Outside

September 1992 Joined Takano Yasuo Zeirishi Jimusho(current: Zeimu Sogo Tax Corporation)
August 2003
Director of Funai Zaisan Consultants
Keiyo Co., Ltd.
(currently Nihon Shisan Soken Co., Ltd.)
December 2009 President of Funai Zaisan Consultants
Keiyo Co., Ltd. (currently Nihon Shisan
Soken Co., Ltd.)
October 2013
Executive Officer, General Manager of
NSS Division of the Company
March 2016
Director, Executive Officer, General
Manager of NSS Division
June 2017
President of Nihon Shisan Soken Co.,
Ltd. (former: Nihon Shisan Soken
Consultant Inc.) (current position)
April 2020
Representative Director of Nitto
Fudosan Co., Ltd. (current position)
January 2022
Director, Managing Executive Officer of
the Company
Consulting Business Supervisor andGeneral Manager of NSS Division(current position)
March 2022
Director of Aoyama Financial Service
Co., Ltd. (current position)

April 1987

October 1995

July 1987

Aoyama Zaisan Networks ｜ Integrated Report 2022

Joined The Kyowa Bank, Ltd. (current: Resona
Bank, Limited)
October 2003 General Manager of Shin-Yurigaoka Branch
October 2004 General Manager of Tokyo Central Marketing Division 1
July 2008
General Manager of Shin-Toshin Marketing Division 3
May 2014
Director of J-COM Co., Ltd. (current: LIKE, Inc.)
Deputy General Manager of Sales Division
and General Manager of Business
Development Division
August 2014
Director of J-COM Holdings Co., Ltd.
(current: LIKE, Inc.)
November 2015 Joined the Company, General Manager ofManagement Planning Office
August 2017
Executive Officer, General Manager of
Administration Division
March 2020
Director, Executive Officer, General Manager
of Administration Division
July 2020
Director, Executive Officer, General Manager
of Management Planning Division
January 2022 Director, Managing Executive Officer of the Company
General Manager of Corporate Planning
Division (current position)
March 2022
Aoyama Financial Service Co., Ltd.
President (current position)
March 2022
Director of Aoyama Zaisan Networks Kyushu Co.,
Ltd. (current position)

Joined Ota Showa Audit Corporation(current: Ernst & Young ShinNihon LLC)
October 2000
Joined Avaya Japan Ltd.
September 2001 Joined Proggest Co., Ltd.
(currently Aoyama Zaisan Investments
Co., Ltd.)
August 2006
Director (concurrent)
January 2016
Representative Director of Shinsei
Aoyama Partners Co., Ltd.
(current position)
March 2016
Director, Executive Officer
Business succession consulting
General Manager of Business Division
January 2021
Director, Executive Officer
General Manager of Consulting
Business Division 4
January 2022
Director, Executive Officer, and General
Manager of BusinessSuccession Fund Services (current
position)
March 2022
Aoyama Zaisan Investments Co., Ltd.
Representative Director (current
position)Independent

Aoyama Audit Corporation(current: PricewaterhouseCoopers Aarata
LLC), Representative Partner
April 1996 Joined Tohmatsu & Co.
(current: Deloitte Touche Tohmatsu LLC)
Representative Partner
June 2000 Outside Director of Ichiyoshi Securities Co.,Ltd.
July 2003
Deloitte Touche Tohmatsu Global
Middle Markets Leader
June 2008 Outside Director of ASAHI KOGYOSHA CO.,LTD. (current position)
June 2010 Outside Director of SBI Holdings, Inc.
March 2011 Outside Director of the Company (current
position)
June 2017 Outside Director of SBI Insurance Group Co.,
Ltd. (current position)
June 2017 Outside Audit & Supervisory Board Memberof Hokuetsu Kishu Paper Co., Ltd. (current:
Hokuetsu Corporation) (current position)
June 2018 Outside Director of UKAI Co., Ltd.

Independent

Joined The Mitsui Bank, Limited (current: Sumitomo
Mitsui Banking Corporation)
Joined Yamazaki Certified Tax Accountant Office
Joined Tohmatsu & Co.
(current: Deloitte Touche Tohmatsu LLC)
Registered as a CPA
Appointed as outside Audit & Supervisory Board
Member of the Company (current position)
Audit & Supervisory Board Member of Nihon Shisan
Soken Co., Ltd. (current position)

Hisao Nakatsuka
April 1994
January 1996
January 1999
November 2001
March 2002
August 2002

Independent

Joined The Tokai Bank, Limited (current: MUFG
Bank, Ltd.)
General Manager of Fujisawa Branch
General Manager of Chofu Branch
General Manager of Takenotsuka Branch
Joined the Company
Director, General Manager of Consulting
Department
Director, General Manager of Administrative
Department

Hiroaki Rokugawa
Audit & Supervisory Board Outside
April 1997
April 1997
June 2002
March 2007
April 2007
June 2008

April 2020
October 2020
January 2021
June 2022

March 2005

Audit & Supervisory Board Member Outside
April 1970

December 2019

Business Succession Navigator Corporation(currently Next Navi), Audit & Supervisory Board
Member (current position)
Audit & Supervisory Board Member of Aoyama Zaisan
Networks Kyushu Co., Ltd. (current position)
Audit & Supervisory Board Member of Nitto FudosanCo., Ltd. (current position)
Audit & Supervisory Board Member of Aoyama
Financial Service Co., Ltd. (current position)
Aoyama Family Office Service Co., Ltd
Audit & Supervisory Board Member (current position)
Nihon Digital Investment Co., Ltd.
Audit & Supervisory Board Member (current position)

Independent

Registered as Attorney (Dai-Ichi Tokyo Bar
Association)
Joined Hori & Partners
Joined Barack Ferrazzano Kirschbaum &Nagelberg LLP (Chicago)
Joined Tokyo Aoyama, Aoki, Koma Baker &McKenzie Law Office
Lecturer of Advanced Institute of Industrial
Technology (current position)
Representative Attorney of Ogasawara Konno &Rokugawa

Funai Estate Co., Ltd.
(former: Aoyama Estate Co., Ltd.) Audit &Supervisory Board Member
April 2006
Managing Director of the Company
September 2008 Audit & Supervisory Board Member of Proggest
Co., Ltd.
October 2010
Director of Aoyama Estate Co., Ltd.
October 2013
Audit & Supervisory Board Member of Nihon
Shisan Soken Co., Ltd.
March 2014
Director of Nihon Shisan Soken Co., Ltd.
March 2015
Advisor of the Company
March 2016
Audit & Supervisory Board Member (current
position)
March 2009

Outside Audit & Supervisory Board Member of
the Company (current position)
April 2013
Professor of Graduate School of Law, Tokai
University
December 2016 Tsunagu Group Holdings, Inc.
Outside Director (current position)
September 2017 Outside Auditor of OKWAVE Inc. (current position)
September 2020 Outside Director and Audit & Supervisory Board
Member of Abalance Corporation (current
position)
April 2021
Outside Auditor of Yumeshin Holdings Co., Ltd.
(current position)
April 2022
Representative Attorney of Tokyo Uchisaiwaicho
Law Firm (current position)
June 2022
Outside Director of Meiji Machine Co., Ltd.
(current position)

Aoyama Zaisan Networks ｜ Integrated Report 2022

25

Our Sustainability
Corporate Governance●Compensation for officers

Basic concept of corporate governanceTotal amount per type of compensation (thousand yen)

Based on our corporate policy of always making proposals from the client’s standpoint with a fair and neutral
attitude, AZN firmly believes it is essential to establish corporate governance to ensure compliance-oriented management and to practice this policy. The Company’s Boardof Directors and Audit & Supervisory Board acknowledge
that the corporate governance framework should primarily
perform the following functions.

⃝ To protect and encourage the exercise of shareholders’ rights.
⃝ To ensure equal treatment of all shareholders.
⃝ To make timely and accurate disclosure regarding all theimportant matters related to the company, including its financial
conditions, operating results, shareholder composition, andgovernance.
⃝ To ensure the strategic orientation of the company, effective
supervision of management executives, and clear accountability.

Corporate Governance System

Total amount ofcompensation(thousand yen)

Basiccompensation

Bonus

Restricted stockcompensation

Other

Director(except outside Director)

211,394

90,372

76,941

32,974

11,10644,081

7

Audit & Supervisory Board
Member(excluding Outside Audit &Supervisory Board Members)

5,300

4,800

500

－

－

－

1

Outside Officer

47,58040,380

7,200

－

－

－

5

Category of officer

Performance-linked

Evaluation of the effectiveness of Board of Directors

The Company ensures the effectiveness of audits of
Directors' performance of their duties by maintaining theindependence of its Auditors and Audit & Supervisory
Board Members from the Board of Directors, and bycollaborating with auditing firms and its in-house audit-

ing department. Moreover, to strengthen the supervisory
function of the Board of Directors, the Company has established the Compensation Council and the Nominating
Committee, at least two of whose members must be
Outside Directors.

(1) Board of Directors

The Board of Directors deliberates and makes decisions on important matters concerning the Company’s management, and oversees theCompany's business and general management. Each of the two Outside Auditors has an advanced level of expertise, and they provide reliable
management oversight from their professional perspectives.

(2) Executive Officers

In light of the segregation of management and implementation, AZN has instituted an Executive Officer system. Executive Officers execute theoperations of the divisions or departments under their control, in accordance with organizational regulations and rules on the segregation of duties
set forth by the Board of Directors.

(3) Executive
Committee

The Executive Committee, consisting of the President, full-time Directors, and Executive Officers, meets on a weekly basis to verify management
policies and discuss management strategies and business execution for the purpose of sharing problem awareness and having smoothcommunication among all members.

(4) Compensation
CouncilRemuneration for directors, within the total scope of remuneration approved by the General Meeting of Shareholders, is determined by theCompensation Council, which is composed of Directors selected by resolution of the Board of Directors. The Compensation Council is composedof three or more Directors, at least two of whom must be outside Directors as a rule for the purpose of raising the transparency and objectivityof the review process.

(5) Nominating
Committee

The Nominating Committee, a voluntary advisory body to the Board of Directors, deliberates on the selection and dismissal of senior management
and Directors and recommends candidates to the Board of Directors, which are decided by the Board of Directors. Also, the Nominating
Committee is composed of three or more Directors, at least two of whom must be outside Directors as a rule for the purpose of raising thetransparency and objectivity of the review process.

(6) Compliance
Committee

The Compliance Committee, consisting of the President, full-time Directors, Executive Officers/General Managers of the divisions, and external
legal counsels (attorneys), has been established in conjunction with the Board of Directors as a forum for deliberation on risk management andlegal compliance by the Company.

(7) Sustainability
Committee

The Sustainability Committee, consisting of the President and full-time Directors, was established to build a foundation for sustainable growth,
to oversee and monitor sustainability policies, strategies, and measures, and to manage and evaluate the progress of objectives resolved by the
Board of Directors.

AZN strives constantly to improve the effectiveness of its Board of Directors. AZN undertakes
an annual questionnaire survey of all Directors
and Audit & Supervisory Board Members regarding the effectiveness of the Board of Directors,
using the evaluation points listed at right. The
results are then discussed and reported to theBoard of Directors.
See right for a summary of last fiscal year's
survey results.

Audit & Supervisory Board

Audit Firm

Board of Directors

Compliance Committee
Sustainability Committee
Executive Committee

President
Departments / Affiliates

Internal Audit Office

26

Aoyama Zaisan Networks ｜ Integrated Report 2022

Report discussion
results to theBoard of Directors

Questionnaire evaluation items

Summary of questionnaire results
About the Board of Directors of theCompany, there were no important mattersraised in each evaluation item, whereas some
findings about the Board of Directors
operations were noted. We intend to makesome improvements, aiming to realize a more
effective Board of Directors.

Executive Officers● Operation of the Board of Directors● Agendas of meetings of the Board of Directors● Supervisory framework by the Board of

Directors● Supervisory framework by shareholders

Risk management
Based on its Crisis Management Regulations, AZN defines external crises, internal crises, disasters, and othercrises as described at the right, and defines how to respond to crises when they occur. In the event of a crisis that seriously threatens corporate operations, a task
force is immediately formed and company-wide action istaken to resolve the problem.

1E
 xternal
risks● Information leak❶
❷ Problems involved in business operations (including●
customer consulting services)❸ Civil violent incidents, contact/problems with anti●social forces❹ Criminal acts by employees (fraud etc.)●❺ Other risks/incidents associated with AZN’s credit●

2 Internal
risks

❶T
●
 raffic accidents by employees (property/personal
damage)❷ Internal troubles (sexual harassment etc.)❸ Mishaps of employees and their families, other work
accidents❹ Other cases constituting a crime by employees

3D isastersetc.

❶ Extraordinary disasters including natural disasters●

Information security management
For the purpose of continually maintaining and strengthening our information security management structure including personal information management, we have obtained the International Organization for Standardization(ISO) 27001 international accreditation and information

security management system certification. We have developed and maintain systems based on this standard,and continue to further strengthen our systems for managing confidential information.

Compliance initiatives

Compensation for officers
AZN's Board of Directors has adopted a policy for determining the details of compensation for individual Directors.
Compensation for individual Directors for the fiscal year
in question is determined by the Compensation Council,
which is composed of 3 or more Directors (at least 2 ofHave discussions
based onquestionnaire
results● Composition of the Board of Directors andGeneral Meeting of Shareholders

Nominating Committee

Collect responses fromall the Directors andAudit & Supervisory
Board Members

Conduct aquestionnaire

Legal Counsel

Compensation Council

Of the following, Number of eligible
officers
non-monetary(persons)
compensation,etc.

whom must be Outside Directors) selected by the resolution of the Board of Directors to increase the transparency and objectivity of the review process. Its methodsof determining the details of compensation and the compensation so determined shall be consistent with the decision-making policy resolved by the Board of Directors.

For the purpose of practicing fair and bona fide
management in compliance with laws, a Compliance
Committee consisting of the President, full-time Directors,
Executive Officers/General Managers of the divisions, andoutside legal counsels (attorneys) has been established.
The Compliance Committee performs the following operations:❶ To recognize potential risk of losing trust from the securities market
and clients in business operations, and prepare countermeasures(draft)❷ To review if there is any compliance issue with specified joint realestate venture operations, and give approval of their execution❸ To review and report preventive measures against serious
compliance violations❹ To examine/check suspicious compliance activities (potential
compliance violations)

Aoyama Zaisan Networks ｜ Integrated Report 2022

27

Our Sustainability
Message from Outside Directors

Establishing a Japanese-style property
consulting service: the significanceof Aoyama Zaisan Networks andexpectations for the future
Two outside directors, responsible for supporting the governance of Aoyama Zaisan Networks, havegiven us an overview of the situation in Japan and abroad, sharing their views on issues for the growthof AZN Group. The following is a summary of the key points for the further growth of AZN, as highlighted by the dialogue between these two experts in economics and management.

Expanding consulting revenue isfundamental to corporate growthsulting capabilities, it will also be necessary to train up an
R&D division in the future.

Improving property consulting capabilities throughthe use of technology
As a consulting firm, we believe that securing excellent
human resources and improving our property consulting
capabilities are our lifelines. Analog consultant training
systems are sure to result in slow growth and limited increases of productivity. We must constantly strive to improve our property consulting capabilities and quality by
utilizing the latest technologies (DX, AI, Big Data, etc.).
To this end, it is essential that we further upgrade theART system, which systematizes AZN Group's hard-won
expertise, and that our consultants utilize the system consistently. Development of the ART system to utilize Big
Data and AI as well as accumulating and analyzing client
data is an urgent task. In order to develop consulting toolsthat utilize next-generation technologies to solve complex
social issues and to constantly diversify our property con-

Promoting the advancement of women
In today's industrial society, diversity of human resources is becoming more and more important, and it has been
proven that this leads to corporate innovation in termsof both quality and quantity, which in turn leads directly
to corporate development and increased productivity. At
AZN, we believe that diversity is also necessary to revitalize the organization and increase productivity. In order toprovide consulting services that fully meet the needs of ourclients, it is important to secure excellent human resources and ensure women take on active roles. Expanding ourcount of female directors and female consultants is essential for AZN Group's growth. We hope to achieve this assoon as possible. The Sustainability Committee engages
in committed discussions on developing a work environment in which women can work in an ongoing fashion,and through the Board of Directors, AZN supports thesteady implementation of specific activities for women.
We believe that creating a rewarding work environment
in which a diverse workforce can maximize its abilities, aswell as a consultant training system, will enable us to increase revenues from our property consulting services for
mid-sized corporate owners nationwide and asset owners
in the Tokyo metropolitan area, who represent the main
focus of our Group.

Outside Director

Haruo Shimada

Developing consulting in non-property fields
Business succession has become a social issue dueto the aging out of managers and the lack of successors,
but we believe that a "Japanese-style family business" forultra-wealthy and long-lived companies has great potential to contribute to the growth of Japanese companies.
Japanese family businesses have a long tradition of family
management, and they tend to cherish family unity, family
28

Aoyama Zaisan Networks ｜ Integrated Report 2022

precepts, and philosophy. We believe that it is not possible to provide consulting services for family businesses inJapan without understanding Japan’s unique approach tofamily relationships and business, and that even if adopted, overseas examples of family business would simply
not be successful.
We have over 30 years of experience in consulting withclients on their property and business succession matters,
and have a thorough understanding of family businessin Japan. We have also worked hard to promote the establishment of the Aoyama Family Office Service in 2021
by by appointing family business experts to the Board of
Directors. AZN believes that our comprehensive property
consulting services in both property and non-property fields
demonstrate the uniqueness and diversity of our Group.
We continue to build consulting expertise in non-property fields as well, which we believe will lead to stronger
contact with the ultra-wealthy through the provision offamily business services, and beyond that, to property
consulting.

Growth of real estate solutions
We observe significant growth potential for consulting
services that leverage our strengths in real estate solutions, such as the Advantage Club, AZN Group's mainstay consulting product, provision of income-producing real estate properties, and effective real estate use
consulting. Demand for AZN's ability to expertly identify
properties and seamlessly handle purchases, holding,management, and sale of income-producing real estateis expected to continue to grow, and the demands of ourGroup’s clients will continue to expand.
We also engage in a wide range of initiatives to contribute to the Sustainable Development Goals (SDGs), including the long-term preservation and effective utilizationof our clients' assets. In this context, Japan has strong
needs for regional development through the utilizationof idle land, and our Group has a proven track record of

Outside Director

Keiji Watanabe

public–private partnerships in this domain through application of the Act on Specified Joint Real Estate Ventures.
With respect to decarbonization initiatives, we believe thatgrowing social demands can be met using solar power
generation and other technologies, and by continuously
providing environmentally friendly real estate, which willlead to long-term preservation of assets and stable revenue for our clients. We believe that by developing initiatives for decarbonization for Advantage Club properties,
which have been significantly expanded since the previous fiscal year, we can both meet client demands andcontribute to society.

Flow of expanding operational demands
In Japan, the Kishida administration's New Capitalism
plan for action has formulated the Doubling Asset-Based
Income Plan, which is expected to reinforce the trend
away from savings and toward investment. Although
Japan lags behind the rest of the world in asset management, AZN plays a role in expanding investment opportunities for Japanese asset owners and corporate owners,
and undertakes comprehensive management of assets.
In addition to real estate solutions, which are AZNGroup's forte, Aoyama Financial Service was establishedin 2020 to provide client-focused financial instrument consulting services, and AZN has put in place a system forproviding investment management services. In addition,
the revision of the Financial Instruments and Exchange
Act in 2020 made it possible to issue digital securities.
Our Group has plans to provide a service to enable thepurchase of income-producing real estate properties
in small amounts, 24 hours per day, 365 days per year,
through a STO (Security Token Offering) initiative that utilizes blockchain technology. We expect this to create newinvestment opportunities for our clients, thereby increasing revenue prospects for our Group.
Although the Japanese economy has lagged behind
global economic development for the last 30 years or
more, Japan's aging population represents a significant
stock of tangible and intangible assets. The cornerstoneof AZN Group's growth strategy for the future will be to
pursue contact with the wealthy in our aging society andmaximize asset value from a global perspective, while
adopting best practices from around the world, with aview to utilizing the assets of wealthy individuals aroundthe world.
◇◇◇
AZN is seeking to achieve further growth by offering thisdiverse range of services, and by fully embracing interpersonal skills as the foundation for property consulting,as well as driving forward with technology through the useof DX and AI. We anticipate ample growth, moving toward
our long-term vision of becoming Japan's No. 1 comprehensive property consulting firm supported by clients who
know, "When it comes to property, it's Aoyama Zaisan
Networks."

Aoyama Zaisan Networks ｜ Integrated Report 2022

29

Our Sustainability
Sustainability management
Instituting the Sustainability Committee

A process of identifying materiality

As we aim to be the best partner for our clients, not onlyin this generation but also of the next generation and thefollowing generations, under our slogan of 100-year property consulting, we believe that succession, operation, andmanagement to sustain and improve significant assets isan essential aspect not only for our clients but also for ourgroup's corporate activities.
For this reason, in February 2022, in line with the Third
Medium-Term Management Plan, AZN Group instituted the
new Sustainability Committee in conjunction with the Boardof Directors with the aim of further improving corporate quality as a sustainable company based on Environmental, social,governance (ESG)/sustainable development goals (SDGs)
approaches.
The Sustainability Committee seeks to construct a foundation for sustainable growth by managing and evaluating the
progress of targets set by the Board of Directors, while at thesame time overseeing and monitoring sustainability policies,
strategies, and actions. Members consist of Representative
Directors and full-time Directors, with the President serving as Chair of the Management Committee and myself, aDirector, Managing Executive and General Manager of the
Administration Division, serving as Executive Director of theCommittee.
The Sustainability Committee is responsible for proposing and promoting specific activities for improvement,
based on various themes and perspectives including
Promotion of TCFD, Instilling Management Philosophy andStrengthening Human Resources, Changing Work Styles,
Social Contribution, and Strengthening Governance. Each
subcommittee discusses certain issues and seeks to implement solutions. TCFD handles climate change response, etc.
Instilling Management Philosophy and Strengthening Human

We make every effort to solve our clients' asset-related problems, based on our management objectives ofcontributing to the happiness of our clients through thesuccession, operation and management of property, andensuring both the physical and mental well-being of thosemembers who work with us.
On the other hand, environmental and social risks havecontinued to escalate in recent years—as well as financial
issues, we should conduct our business while incorporating non-financial issues in light of ESG in management

Step

Masayuki Yagi

Executive Director, Sustainability Committee
Director, Managing Executive Officer
General Manager of Administration Division

Resources handles management philosophy, education systems, recruitment strategy, etc. Changing Work Styles handles company-wide efficiency of meetings, opportunities for
women to play more active roles, health management, etc.
Social Contribution handles social contribution activities, etc.
Strengthening Governance handles redevelopment of internal regulations, information security, etc.
The members of each subcommittee are selected by the
Executive Director from among personnel at related departments. Each subcommittee sets goals and plans for achieving these goals, and undertakes activities through a processof repeated discussion and verification.

● Objectives & operations

Objectives

Operations⃝ In line with the Third Medium-Term Management Plan, AZN instituted the new Sustainability Committee in conjunction with the Boardof Directors with the aim of further improving corporate quality as a sustainable company based on ESG/SDGs approaches.
⃝ Under this Committee, subcommittees have been established to promote specific improvements on common themes for
improving corporate quality across the entire company.
Committee
Director

President

Executive
Director

Director, Managing Executive Officer, and General Manager of Administration Division

Committee
Members

Director, Managing Executive Officer, and General Manager of Real Estate Division
Director, Managing Executive Officer, Consulting Business Supervisor and General Manager of NSS Business Division
Director, Managing Executive Officer, and General Manager of Business Division

1

Step

strategies and prioritizing harmony with stakeholders, sothat we can maintain sustainable growth.
For this reason, in FY2020 AZN Group identified as
high-priority issues both project-related materialities suchas reducing the environmental impact of buildings,
and business infrastructure-related materialities such as
human resource development and corporate governance. In identifying materialities, we identify social issues
likely to exert significant impact on our company and on
society, based on the steps shown in the diagram below.

2

Step

Identify social challenges

Hold hearings internally/
externally and evaluate
importanceAnalyze global social
challenges/ESG trends andidentify a wide range ofenvironmental/social/econo
mic issues

Organize social challenges interms of importance forexternal parties (stakeholders)
including ESG investors andimpact on AZN

3

Step

4

Identify materiality
Internal discussions& approvals

Discuss and identify(finalize) important
challenges along two
spectrums: importance for
the Group and importancefor our stakeholders● ESG / SDGs initiatives

E

S

Environment

G

Society◎ Reduction of environmental load ofbuildings◎ Transition to decarbonized society◎ Climate change actions and GHG
reduction◎ Response to climate change◎ Water security management◎ Waste reduction

Governance◎ Human resource development◎ Corporate Governance◎ Human rights in labor environment◎ Anti-corruption policies & practices

and human rights due diligence◎ Diversity promotion◎ Engagement with local community< Relevance of SDGs to Group business >● Subcommittee activities divided into 5 segments

30

Promoting TCFD

Instilling Management
Philosophy andStrengthening Human
Resources

Changing Work Styles

Contributing to society

Stronger governance[SDGs][Quality of interpersonal skills][Quality of work styles][Quality of social contribution][Quality of protection]

Aoyama Zaisan Networks ｜ Integrated Report 2022

Aoyama Zaisan Networks ｜ Integrated Report 2022

31

Our Sustainability
Sustainability management
Materiality Policies & Initiatives
AZN aims to address ESG issues by realizing the strategies outlined in its Third Medium-Term Management
Plan, which starts in 2022. As a comprehensive property
consulting company that supports the enduring development of our clients' valuable assets and businesses, weare committed to realizing our management objective of"Contributing to the happiness of our clients through thesuccession, operation, and management of property" byproviding environmentally friendly products and services

to resolve property-related concerns, as well as our efforts
to reduce environmental impact in response to climatechange.
As an advocate of 100-year property consulting, AZN
needs to build on the foundation of human resource development, the source of our consulting services, to ensure
its own sustainable growth. In 2022, we have also established a Sustainability Committee and committed to company-wide efforts to realize a more sustainable society.

E Realizing a decarbonized, recycling-based society
AZN Group is engaged in business activities utilizing
energies from land and other natural resources, and we
recognize that addressing climate change is an important management challenge with a considerable impact on
our business continuity. We also believe that CO2 emissions associated with our real estate operations and otherbusiness activities have a significant impact on climatechange, and thus we consider these a major risk. To thisend, we prioritize environmentally friendly initiatives fortheir ability to contribute to enhancing asset value and resolving social issues, and we will work to meet the needsof both clients and tenants. The Sustainability Committee
will continue to study the current circumstances, utilizing

the TCFD framework on climate change to improve information disclosure and transparency in order to achieve amore sustainable society.
Current ⃝ Switching to environmentally friendly facilities and clean
initiatives
energy-based electricity for Advantage Club⃝ Promoting water conservation and waste reduction in
conjunction with Advantage Club tenants⃝ Promoting the use of environmentally friendly
materials, paints, equipment, etc. by incorporating
FutureESG perspectives into our analysis of current
initiatives
situations and recommendations for land use andconstruction support⃝ Promoting buildings and urban development that areconsiderate of water environment conservation⃝ Reducing waste and greenhouse gas emissions

S Realization of society that supports (the success of) diverse talents
AZN Group considers human resources among its
most valuable management capital, and believes that improving the interpersonal skills and diversity of its employees are key themes in order to contribute to clients and tosociety. In addition to initiatives to improve interpersonal
skills within the company, we will strengthen initiatives thatwill help improve interpersonal skills through our employ-

Case 1

Supporting the establishment and operation of foundations

Establishing a foundation is one way that assets can be used
to contribute to society. However, without specialists in building
managerial systems and in operating and managing assets,sustainable management can be difficult.
At Aoyama Zaisan Networks, by utilizing our expertise in theoperation and management of property and business succession, as well as our internal and external networks, we support
our clients in passing on their assets and philosophy to thenext generation through foundations.
For example, we supported the establishment and operationof a foundation providing scholarships to students from orphanages in order to realize a client's desire to support children
not afforded educational opportunities for economic reasons.
32ees’ own social contribution activities. Employee diversity
is also a crucial aspect of appreciating the diverse valuesof our clients and solving the property issues that exist
in modern society. To promote diversity, we will continue
to create a pleasant working environment for women andother diverse human resources. We believe that by respecting the individuality and autonomy of our employees

Aoyama Zaisan Networks ｜ Integrated Report 2022

We have also introduced an operations and management system that provides guidance and checks to ensure that students are able to use their scholarship funds appropriately, andwe conduct thorough follow-ups together with our client after
establishment. Creating opportunities for higher education enables children to dream and hope for the future.
AZN has also been involved in establishing and operatingother foundations for various purposes, including supporting
human resource development in the fashion industry, laying thefoundation for enjoyment of classical music, and conducting
educational science experiments in the field. We intend to continue helping to connect the hearts and minds of our clients by
utilizing our group’s hard-won expertise.

and constantly providing opportunities for self-improvement and personal growth, we can grow into a company

capable of evolving with social change and our clients’needs, and thus contributing to our clients and to society.

⃝ Instilling our management philosophy through corporate
philosophy training and morning meetings conducted byPresident Hasumi himself⃝ Enhancing consultant training programs such as ART
system training and the Consulting Education Center
Current⃝ Encouraging the use of parental leave
initiatives⃝ Expanding the contract employee system to allow
employees to continue working after the mandatory
retirement age of 65⃝ Giving donations and other support to medical
associations and institutions⃝ Expanding donations to organizations dedicated toeradicating pet euthanasia, promoting subsidized
children's cafeterias, etc., and offering support throughvolunteer activities undertaken by our employees⃝ Promoting advancement of women (increasing the
Futurepercentage of female employees from approximately 30%
initiatives
to 40%, and the percentage of female managers fromapproximately 18% to 30%)
⃝ Maintaining the work environment⃝ Enhance consultant training by using external educational
institutions⃝ Training up management personnel

S Business activities with emphasis on partnerships
As a comprehensive property consulting firm, AZNGroup recognizes our engagement with local communities
is one of the important agenda in terms of resolving social
challenges and protecting property. With our mission, “Toremain your best partner in 100 years,” we strive to contribute to our clients’ happiness through the succession,
operation, and management of property. We regard local
communities as a foundation for the life of all people including our clients, their families, and the companies andemployees they value, as well as a foundation for socialand economic activities and for leading happy lives. To

ensure that our clients can live happily and that the valueof their assets in local communities continues to increase,
we are committed to engaging with local communities.
⃝ Contributing to welfare through land utilization andconstruction support for childcare facilities and seniors
facilities, as well as attracting hospitals, clinics, and otherfacilities of high public benefit
Current ⃝ Creating mechanisms to give back to society byinitiatives
supporting the establishment of foundations⃝ Contributing to urban development and regional
job creation by collaborating with partners (publicorganizations, financial institutions, and companies) on
regional development projects

G Continuing improvement in governance
Recognizing corporate governance as an importantmanagement mechanism to make transparent/fair andspeedy/decisive decisions, AZN Group is actively committed to it. In line with this policy, activities are undertaken appropriately, including the Nominating Committee's determination of director candidates, the Compensation Council'sdeliberations on executive compensation, and evaluation of
the effectiveness of the Board of Directors. For the purposeof practicing fair and bona fide management in compliancewith laws, we have established the Compliance Committee
Case 2consisting of the President, full-time Directors, Executive
Officers/General Managers of the divisions, and external
legal counsels (attorneys) as a structure to further compliance with laws and corporate ethics.
⃝ Establishing appropriate managerial structures for AZNGroup by instituting a Nominating Committee andCurrent
Compensation Council to determine director candidates,
initiatives
as well as succession planning, etc.
⃝ Operating the Compliance Committee and a fair and transparent
Compensation Council to advance legal compliance

Achieving construction of a senior citizen’s facility through subsidies

Beyond making effective use of their property, many of ourclients want to actively contribute to society as representativesof their communities. In one such case, this desire was realized
by becoming the owner of a senior citizens’ facility for which
the local municipality had publicly sought applications.
Just as Aoyama Zaisan Networks was seeking effective applications for use of our client’s land, an open call for business operators to run a senior citizens’ facility was announced.
Although the application deadline was only about a monthaway, these open calls are held on a regular basis. In order tohelp realize the clients desire to contribute to the local community, AZN had been considering ways to make effective use of
the land, including the possibility of such public offerings.

After performing a detailed business income and expense
simulation, we recommended a complex combining a smallscale multifunctional facility with a group home for elderly persons with dementia. After the applications were reviewed andpublic bidding was conducted, our group's proposal was selected. The review process was more difficult because this wasa subsidized project, but the fact that our proposal cleared thereview was evidence that the proposal, including its sustainability, had been highly evaluated, which reassured the client.
We also provided support for selecting business operators andsigning contracts to ensure that the project would be sustainable.

Aoyama Zaisan Networks ｜ Integrated Report 2022

33

Our Data
Financial & Non-financial Data (Summary)◆ Financial highlights◆ Non-financial highlights● Net sales● Operating profit / Ratio of operating profit(million yen)(million yen)
24,21325,000

2,000

1,856
8.5

19,061

20,00019,1187.5

1,500

17,227

15,0001,464(%)(people)

10

200

1,603

150

4
500

5,000

2017

2018

2019

2020

2021

December December December December December● Equity ratio

2017

2018

2019

2020

2021

0

0

December December December December December

2017

(yen)

(people)

50

80

2,500

40.6

30

39.8

2,000

60

40
20

1,500
33.37

33.01

● Number of new recruits

1,752

1,823

20

2017

2018

2019

2020

0

2021

December December December December December● Turnover● Average salary(thousand yen)

3.30％

10,000Total
20 people

1,398

2017

2018

2019

2020

0

2021

8,219

8,629
8,000

7,885

2020

2021

6,000

4,000

500

December December December December December

8,027

8,000

1,905

2,000

10
0

81.8%

(69.9%)(new graduates and mid-career) in FY2021

New graduates
4 people

Men

Men

181 people

1,000

30

10

2021

50.94

50

28.7

2020

2,076
61.22

36.5

2019

70.00

70

40.8

2018

● Number of clients

(%)

40

Total
259 people

Consultants
183 people(70.7%)

December December December December December● Earnings per share (EPS)

Women
18.2%

50

2

0

Women
78 people(30.1%)All employees
259 people

100

10,000● Percentage of managers (by gender)

134

6

1,303

1,094

● Number of employees (by gender)

148

7.7

14,562

170

167

8

6.8

● Number of consultants

183

8.4

1,000

0

● Shifts in number of consultants

Definitions within non-financial highlights: [Eligibility] Those not listed include full-time employees and temporary employees (excluding directors and part-time workers) acrossthe entire group, including those who retired partway through the fiscal year.
[Calculation method] Employees still employed as of December 31 of the relevant fiscal year (including those retiring on December 31)


2017

2018

2019

2020

2021

December

December

December

December

DecemberMid-career
16 people

0

2017

2018

2019

December December December December December

On September 1, 2021, the Company conducted a 2-for-1
stock split of its common stock. Pre-2020 amounts andpercentages have been replaced by amounts and percentages
that take into account this split.

◆ Financial indicators
Units

December 2009

December 2010

December 2011

December 2012

December 2013

December 2014

December 2015

December 2016

December 2017

December 2018

December 2019

December 2020

December 2021

Million yen

5,408−3,686−4,245−4,820
6,442
1,187
708
2,153
−5,339−228.01
56.16
3.75
−36.1
−135.0
–
–
18.4

5,227
200
160
82
4,498
1,222
1,890
282
−1,745
3.90
57.83
2.50
2.9
6.8
2.2
3.7
27.2

7,627
186
166
218
3,698
1,224
579
122
−602
10.32
57.92
3.25
4.1
17.8
6.9
4.9
33.1

5,839
98
91
92
4,769
1,941
227
−1,203
247
4.36
59.74
3.75
2.2
7.4
3.4
2.3
26.5

6,369
160
142
201
4,698
2,151
368
1,886
−425
9.26
91.59
5.00
3.0
11.8
4.4
3.3
45.7

9,305
445
467
362
5,930
2,447
197
43
253
15.49
103.63
7.50
8.8
15.9
10.1
8.3
40.9

14,275
485
471
518
7,220
2,909
801
−162
370
22.11
122.72
9.00
7.2
19.5
11.4
7.3
40.0

14,420
751
628
587
9,258
3,329
1,177
−1,061
1,116
24.88
139.86
11.50
7.6
18.9
11.9
8.7
35.8

14,562
1,094
943
768
12,587
3,624−1,277
-840
2,174
33.37
158.41
15.00
8.6
22.2
11.5
9.0
28.7

17,227
1,464
1,358
1,162
12,353
4,518
272
332
−1,78750.94
197.59
19.50
10.9
28.6
13.4
10.5
36.5

19,061
1,603
1,503
1,676
15,492
6,390
2,300
723
1,215
70.00
259.48
25.00
10.8
31.1
13.0
10.3
40.6

19,118
1,303
1,195
800
16,001
6,566
1,942
−753
−215
33.01
262.39
26.50
7.6
12.7
8.0
7.3
39.8

24,213
1,856
1,796
1,481
17,426
7,128
2,389
−631
−374
61.22
294.61
28.00
10.7
22.0
10.0
9.7
40.8

● Financial data
Net sales
Operating profit
Ordinary profit
Net income attributable to parent company shareholders
Total assets
Net assets
Cash flow from operating activities
Cash flow from investment activities
Cash flow from financial activities
EPS (earnings per share)
BPS (book value per share)
Dividend per share
ROA (return on assets)
ROE (return on equity)
ROIC (return on invested capital)
Adjusted ROIC (adjusted return on invested capital)
Equity ratio

Million yen
Million yen
Million yen
Million yen
Million yen
Million yen
Million yen
Million yen
yen
yen
yen
%
%
%
%
%

*Adjusted ROIC is calculated by subtracting the statutory income tax rate (30.62%) from operating profit to arrive at NOPAT (net operating profit after tax). For invested capital, the average of two periods is applied.
*The Company conducted a 100-for-1 stock split of its common stock on January 1, 2014, and a 2-for-1 stock split of its common stock on September 1, 2021. Pre-2020 amounts and percentages have been
replaced by amounts and percentages that take into account this split.

34

Aoyama Zaisan Networks ｜ Integrated Report 2022

Aoyama Zaisan Networks ｜ Integrated Report 2022

35