Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended December 31, 2021
(Based on Japanese GAAP)
February 8, 2022
Company name:
Aoyama Zaisan Networks Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

8929
President

URL

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

Inquiries:

Director,Deputy Executive Officer,
General Manager for ManagementMasayuki Yagi

Headquarters
Scheduled date of ordinary general meeting of shareholders:March 30, 2022

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

March 30, 2022
March 31, 2022

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

Masazumi Hasumi
TEL

03-6439-5800(for analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)(1) Consolidated operating results
Net salesYear ended December 31, 2021
Year ended December 31, 2020

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
1,856
42.4
1,796
50.2
1,481
85.0
1,303(18.7)
1,195(20.5)
800(52.2)

Millions of yen
24,213
19,118%26.6
0.3

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
60.91
22.0
10.7
7.7
32.83
12.7
7.6
6.8

Yen
61.22
33.01

Year ended December 31, 2021
Year ended December 31, 2020
(2) Consolidated financial position

Total assets
As of December 31, 2021
As of December 31, 2020

Net assets

Equity ratio

Millions of yen
17,426
16,001Millions of yen
7,128
6,566

Cash flows fromoperating activities
Millions of yen
2,389
1,942

Cash flows frominvesting activities
Millions of yen
(631)
(753)

Net assets per share%
40.8
39.8

Yen
294.61
262.39(3) Consolidated cash flows

Year ended December 31, 2021
Year ended December 31, 2020

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(374)
10,862(215)
9,424

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2020
Year ended December 31, 2021
Year ending December 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYenYen

Yen

Millions of yen%%––

20.00
22.00

–
–

33.00
17.00

53.00
–

643
675

80.3
45.7

10.2
10.1

–

13.00

–

18.00

31.00

1

44.3

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
36,500
50.7
2,550
37.4
2,420
34.7
1,690
14.1
70.00
4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2021

24,362,800 shares As of December 31, 2020

24,284,800 shares

Number of treasury shares at the end of the period
As of December 31, 2021

220,248 shares As of December 31, 2020

248 shares

Average number of shares during the period
Year ended December 31, 2021

24,196,881 shares Year ended December 31, 2020

224,261,806 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2020

As of December 31, 2021Assets
Current assets
Cash and deposits

9,428,038

10,865,779

Accounts receivable - trade
Real estate for sale521,733
319,452

567,076
118,675

Other inventories
Income taxes receivable

891
40,281

5,303
25,475

Other
Allowance for doubtful accounts

330,410(944)

483,733(3,078)

10,639,863

12,062,965

2,699,550(216,336)

2,700,160(330,887)

2,483,214

2,369,272

195,666
284,744

195,666
298,134

Accumulated depreciation(150,773)(181,579)

Other, net

133,971

116,554

2,812,852

2,681,493

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

Total property, plant and equipment
Intangible assets
Goodwill

37,15828,240SoftwareOther

610,386
29,440495,872
27,277

Total intangible assets

676,985

551,389

Investments and other assets
Investment securities

1,154,492

1,587,037

Shares of subsidiaries and associates
Deferred tax assets

32,472
296,599

34,864
122,658

Other

388,644386,557

1,872,208

2,131,118

5,362,046

5,364,001

16,001,910

17,426,966

Total investments and other assets
Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2020

As of December 31, 2021

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

139,105
100,000

189,040
200,000

1,021,295
434,000

1,298,150
232,000

Income taxes payable
Accounts payable - other39,575932,376

204,215
986,484

Asset retirement obligations
Other

26,452
672,111–
736,4463,364,915

3,846,336

Current portion of long-term borrowings
Current portion of bonds payable

Total current liabilities
Non-current liabilities
Bonds payable

412,000

180,000

4,203,597
1,397,871

4,679,227
1,528,577

57,281–

57,781
6,897

6,070,750

6,452,483

9,435,666

10,298,820

Shareholders' equity
Share capital

1,153,520

1,167,601

Capital surplus
Retained earnings

1,314,999
3,810,271

1,330,819
4,625,458(201)(167,951)

6,278,591

6,955,928

166,988(73,612)

181,653(24,930)

Long-term borrowings
Long-term leasehold and guarantee deposits received
Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

493,375

156,722

193,620656

11,4394,055

6,566,243

7,128,146

16,001,910

17,426,966Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2020

December 31, 2021

Net sales
Cost of sales

19,118,353
15,491,365

24,213,197
19,882,635

Gross profit

3,626,987

4,330,562

Selling, general and administrative expenses

2,323,603

2,474,400

Operating profit

1,303,384

1,856,162

Interest income
Dividend income

611
2,371

456
5,782

Share of profit of entities accounted for using equity method
Foreign exchange gains

4,726
–

2,392
44,179

Other

3,467

4,417

Total non-operating income

11,17757,227

Interest expenses
Guarantee commission64,117
5,583

73,9782,993

Commission expenses
Foreign exchange losses

15,53133,17230,231
–

352

9,724

118,757

116,927

1,195,803

1,796,462

Non-operating income

Non-operating expenses

Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities–

34,001Gain on reversal of share acquisition rights–

190,353

Total extraordinary income–

224,354

Loss on valuation of golf club membership
Loss on retirement of non-current assets

11,94937,277–335

Impairment losses

47,007

9,822

Extraordinary losses

Total extraordinary losses

96,234

10,1581,099,568

2,010,658

Income taxes - current

259,213366,728

Income taxes - deferred

44,789167,468

Total income taxes

304,003534,197

Profit795,565

1,476,460

Profit before income taxes

Loss attributable to non-controlling interests(5,343)(4,862)

Profit attributable to owners of parent

800,909

1,481,322

5Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
December 31, 2020

Fiscal year ended
December 31, 2021

Profit795,565

1,476,460

Other comprehensive income
Valuation difference on available-for-sale securities(62,963)

14,664Foreign currency translation adjustment(30,425)

48,682

Total other comprehensive income(93,388)

63,347

Comprehensive income

702,176

1,539,807

Comprehensive income attributable toComprehensive income attributable to owners of parent

707,520

1,544,669(5,343)(4,862)Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended December 31, 2020
(Thousands of yen)
Accumulated other comprehensiveincomeShareholders' equity

Share
capitalBalance atbeginning ofperiod

1,143,304

Capitalsurplus1,304,783

Retainedearnings

3,651,968

Treasuryshares(201)

Valuationdifference
ForeignTotaloncurrency
shareholders'available- translation
equityfor-sale adjustment
securities
6,099,855

229,952(43,187)

Total
accumulated
other

Share
acquisitionrightscontrolling

103,705–

Non-interests

Total net
assetscomprehensive
income186,764

6,390,326

Changes during
periodDividends ofsurplus
Issuance of
new shares exercise ofshareacquisitionrights(642,606)

10,216

10,216Profit
attributable toowners ofparent

800,909(642,606)(642,606)

20,432

20,432800,909

800,909

Net changes
in items otherthanshareholders'equity(62,963)(30,425)(93,388)

89,914656(2,818)

Total changes
during period

10,216

10,216

158,303–178,735(62,963)(30,425)(93,388)

89,914656

175,917

Balance at endof period

1,153,520

1,314,999

3,810,271(201)

6,278,591

166,988(73,612)93,375

193,620656

6,566,243

7

Fiscal year ended December 31, 2021
(Thousands of yen)
Accumulated other comprehensive
incomeShareholders' equity

Share
capitalBalance at
beginning of
period1,153,520

Capitalsurplus1,314,999

Retainedearnings

3,810,271

Treasuryshares(201)

Valuationdifference
Foreign
Totaloncurrency
shareholders'available- translation
equityfor-sale adjustment
securities
6,278,591

166,988(73,612)

Total
accumulated
other

Share
acquisitionrightscontrolling

193,620656

Non-interests

Total net
assetscomprehensive
income93,3756,566,243

Changes during
periodDividends ofsurplusIssuance of
new shares exercise ofshareacquisitionrights(666,135)

14,081

14,081

Profitattributable toowners ofparent

1,481,322

Change inownership
interest ofparent due totransactions
with noncontrollinginterests

1,738

Purchase oftreasury
shares(167,750)(666,135)(666,135)

28,162

28,162

1,481,322

1,481,322

1,738

1,738

(167,750)(167,750)

Net changes
in items otherthanshareholders'equity14,664

48,682

63,347(182,181)

3,399(115,434)

Total changes
during period

14,081

15,819815,186(167,750)

677,337

14,664

48,682

63,347(182,181)

3,399

561,902

Balance at endof period

1,167,601

1,330,819

4,625,458(167,951)

6,955,928

181,653(24,930)

156,722

11,4394,055

7,128,146

8

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
December 31, 2020

Fiscal year ended
December 31, 2021

Cash flows from operating activities
Profit before income taxes
Depreciation

1,099,568
191,135

2,010,658
302,191

Amortization of goodwill
Share-based payment expenses

7,433
90,678

8,918
7,270

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

325(2,982)

2,133(6,238)Interest expenses
Loss (gain) on sale of investment securities

64,117–73,978(34,001)

Gain on reversal of share acquisition rights
Loss on valuation of golf club membership–
11,949(190,353)–

Loss on retirement of non-current assets
Impairment losses

37,27747,007335
9,822

Decrease (increase) in trade receivables
Decrease (increase) in inventories

20,562
1,030,090(45,665)
196,388

Decrease (increase) in accounts receivable - other
Decrease (increase) in advance payments to suppliers(2,757)–2,357(148,821)

Decrease (increase) in advances paid
Increase (decrease) in trade payables

4,011
21,701

4,227
49,934

Increase (decrease) in accounts payable - other
Increase (decrease) in deposits received

15,008(30,141)

214,500
77,335

Increase (decrease) in long-term accounts payable - other
Increase (decrease) in accrued consumption taxes(1,127)(170,609)

500(20,372)

Increase (decrease) in leasehold and guarantee deposits
received

7,902

130,606

Other, net(9,274)

31,597

Subtotal

2,431,877

2,677,304

Interest and dividends received

2,982

6,238Interest paid
Income taxes refund (paid)(99,239)(393,205)(94,221)(199,860)

Net cash provided by (used in) operating activities

1,942,416

2,389,461

9

(Thousands of yen)
Fiscal year ended
December 31, 2020

Fiscal year ended
December 31, 2021

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets(68,037)(402,993)(162,608)(56,432)

Payments for asset retirement obligations
Purchase of investment securities–(368,204)(25,114)(790,500)

Proceeds from sales and withdrawal of investment securities
Proceeds from sale of shares of subsidiaries and associates

368,2362402,921–

Purchase of shares of subsidiaries resulting in change in scopeof consolidation(245,558)–

Proceeds from collection of short-term loans receivable
Payments of leasehold and guarantee deposits

23,000(60,146)–(41,383)

Proceeds from refund of leasehold deposits

359

42,080(753,343)(631,037)

Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings(29,612)3,530,000

100,000
2,000,000

Repayments of long-term borrowings
Redemption of bonds(2,600,047)(494,000)(1,247,515)(434,000)

19,668–

27,1091,955––(167,954)
10,000

Dividends paid

(641,079)(664,337)

Net cash provided by (used in) financing activities(215,070)(374,743)

Effect of exchange rate change on cash and cash equivalents(44,081)

54,059Net increase (decrease) in cash and cash equivalents

929,920

1,437,740

Cash and cash equivalents at beginning of period

8,494,808

9,424,728

Cash and cash equivalents at end of period

9,424,728

10,862,469

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from exercise of employee share options
Proceeds from issuance of bonds with share options
Purchase of treasury shares
Proceeds from share issuance to non-controlling shareholders

10