We will remain your best partner over 100 years
We are a comprehensive asset consulting firm that protects your assets and future.

Explanatory Materials for
Financial Results for the Nine Months Ended September 30, 2023
Fiscal Year Ending December 31, 2023

Securities Code ：8929
Aoyama Zaisan Networks Co., Ltd.
November 14, 2023
© 2023 Aoyama Zaisan Networks GroupContents

1 Revision of Full-Year Financial Results Forecasts
２ Financial Results for the Nine Months Ended September 30, 2023

3 Shareholder Return Policy

4 Appendix© 2023 Aoyama Zaisan Networks Group1

Section 1

Revision of Full-Year Financial Results Forecasts

Revision of Full-Year Financial Results Forecasts
・Although full-year financial results for FY2023 depend on the 4th quarter financial results, profits at each stage
will probably exceed record highs.

・Asset consulting

Although the forecast for net sales of asset consulting was revised from 7.5 billion yen to 7.0 billion yen, the net sales of asset
consulting will probably hit a record high. In addition, net sales of highly profitable asset succession are expected to beapproximately 4.0 billion yen, significantly higher than the previous year (2.97 billion yen).
・Real estate transactions
Compared to ADVANTAGE CLUB's composition plan of 32.5 billion yen, the total amount of composition of ADVANTAGE
CLUB and STO is estimated to be approximately 29.0 billion yen. We sill start offering of the memberships of ADVANTAGE
CLUB by the end of this year. (The sales will be recorded in the next fiscal period)

Unit:：Million yen

3© 2023 Aoyama Zaisan Networks GroupSection 2

Financial Results for the Nine Months Ended September 30, 2023
 Highlights of Consolidated Financial Results
 Actual PL ー In Case of Adopting the Net Amount Method
 Breakdown of Changes in Operating Profit
 Gross Profit by Segment
 Changes in Net Sales of Asset Consulting
 Net Sales by Segment

BS Highlights

Highlights of Consolidated Financial Results
・Net sales decreased year on year due to the year-on-year decrease in the composition amount of
ADVANTAGE CLUB, etc., although the net sales of asset consulting increased year on year.
・Despite the above factors, operating profit, ordinary profit, and gross profit were higher than those in thesame period of the previous year due to significantly higher sales in asset consulting, especially in asset
succession.
Unit：Million yen

5© 2023 Aoyama Zaisan Networks GroupFive-Year Changes in Consolidated Financial Results (Nine Months)

Unit: Million yen

6© 2023 Aoyama Zaisan Networks GroupActual PL — In Case of Adopting the Net Amount Method

Maintaining actual high level operating profit ratio
For accounting purposes, net sales of real estate transactions such as those of ADVANTAGE CLUB are
generally presented as a total amount.
However, our PL based on our actual situation is as shown in the table below, and we are profitable as aconsulting firm. We believe that this disclosure of actual conditions will provide useful information forinvestors.
Unit：Million yen* Net sales are calculated by netting the net sales related to real estate purchases and sales out of the net sales for accounting purposes (costs of sales related to real estate purchases are offset against net sales).
Costs of sales are calculated by deducting costs of sales related to real estate purchases and labor costs recorded in costs of sales from the accounting costs of sales.

7© 2023 Aoyama Zaisan Networks GroupBreakdown of Changes in Operating Profit
・Gross profit (excluding personnel expenses) increased due to increased salesof high-profit margin asset succession
・Personnel expenses increased in accordance with increase in the number if
employees
Uni: Million yen
Increase in personnel expenses
Decrease in selling, general andadministrative expenses
Increase in gross profit（excluding personnel expenses）(excluding personnel expenses)

▲58

+293

▲78

1,665

1,821

FY2022Q3

FY2023Q3© 2023 Aoyama Zaisan Networks Group8

Gross Profit by Segment■Asset consulting
Unit: Million yen

 Gross profit ratio improved due to anincrease in sales of high-profit margin
asset succession.

■Real estate transactions
Unit: Million yen

 We will ensure profitability throughout
the year, exceeding last year's grossprofit ratio of 9.5% for real estatetransactions.
© 2023 Aoyama Zaisan Networks Group9

Changes in Asset Consulting Sales
Asset consulting sales increased from the same period last year due to the significant sales increasein asset succession, although M&A, business succession funds in business succession consulting
will be heavily weighed in the 4th quarter of 2023.
Unit: Million yen
4,500
4,000
3,500
3,000
2,500

3,818

4,129

4,106

805

911

934
961

4,393
1,269

4,588
1,042
673

1,348

1,158

1,171

2,000
1,500
1,000

2,871
1,922

1,975

2,036

1,952

FY2019Q3

FY2020Q3

FY2021Q3

FY2022Q3500
0FY2023
Q3Asset succession

Business succession
Product composition© 2023 Aoyama Zaisan Networks Group10

Net Sales by Segment
Asset Consulting
Sales from asset succession consulting for individual asset owners,
business succession consulting for business owners, and sales fromconsulting on the development of proprietary products to manageand operate clients' assets are recorded in asset consulting.

Real Estate Transactions
As part of asset consulting, the Company purchases real estate anddevelops products related to real estate for the purpose of meeting theasset management needs of its clients, and includes the sales of suchproducts in real estate transactions. Rental income from real estateholdings is also recorded.

Unit: Million yen© 2023 Aoyama Zaisan Networks Group11

Asset Succession (for Individual Asset Owners)
Unit: Million yen
3,000

2,871

2,500

2,000

1,922

1,975

2,036

1,952

 Sales have significantly increased due to anincrease in the number of clients.

1,500

1,000

500

0

FY2019Q3

FY2020Q3

FY2021Q3

FY2022Q3

FY2023Q3© 2023 Aoyama Zaisan Networks Group12

Business Succession (for Business Owners)

Unit: Million yen

Succession to the family line
 Generally the same level as the previous period.
We will aim to accelerate early account planclosings by increasing the number of clients

1500
1400

1,348

1300
1200

1,158

1100
1000
800
700

845

387

273
498

200
100

673

8

40

279

59

400
300

427

403

600
500

 We expect to close large M&A deals in the fourth
quarter of this fiscal year.

177

961

900

M&A (Third-party succession)

1,171

606

624

FY2022 Q3

FY2023 Q3450229

FY2019 Q3

FY2020 Q3

Succession to the family line

FY2021 Q3

M&A

Business succession fundBusiness succession fund (Discontinuation of business) This fiscal year, we expect to recoup theinvestments in the fourth quarter.
 Business succession fund needs are high, and weplan to make several investments in the fourth
quarter.
 In FY2020, while sales of business succession
were 845 million yen, costs of sales were 605
million yen.（Net profit was 239 million yen).
© 2023 Aoyama Zaisan Networks Group13

Product Composition, etc.
Unit: Million yen
1,269

1,250

AD Composition (commission fees at the time of AD composition)

1,150
1,050
950

440
934

AD Dissolution (commission fees at the time of dissolution)

911

850

805

750
650

1,042

403

168

549

Other

450

118

350

150
50

 There were no dissolutions at the end of the 3rd quarter.

341

613

550

250

 It was lower than the previous period due to a decrease in
the composition amount of ADVANTAGE CLUB.

661

327

493

389

224
97

136

FY2019Q3

FY2020Q3

AD Composition

FY2021
Q3

AD Dissolution

FY2020Q3

 Management fees during the period for ADVANTAGE
CLUB in operation, AM fees for regional development
projects, and intermediary fees for operating leases arerecorded.

Fy2023Q3

Other© 2023 Aoyama Zaisan Networks Group14

Changes in Number of Consultants and Clients
 We are actively hiring consultants due to increase in number of clients
 Although the number of clients per existing consultant has increased due to the utilization of
the ART system, etc., the number of clients per consultant has slightly increased due to anincrease in newly hired consultants.

POINT

2,620

Unit: No. of persons

No. of consultants

2,377

No. of clients
1,752

1,823

1,905

2,076

1,398

735

97

2014

847

102

2015

967

120

2016

134

2017

148

2018

167

2019

170

2020

183

2021

203

2022

214

2023.3Q© 2023 Aoyama Zaisan Networks Group15

Real Estate Transactions
Unit: Million yen
25,00023,6402,037

21,111663

20,000

4,576

15,000 As the memberships of ADVANTAGE CLUB were sold out
shortly after the club started offering, we will accelerate thecomposition of ADVANTAGE CLUB in the future.

STO
21,602

10,000
6,636

7,174
2,467

15,871
12,5864,707

FY2019 Q3

FY2020 Q3

FY2021 Q3

 The sales of the first case of STO were alreadyrecorded.
Other real estate transactions

4,014

2,621

0

 5 cases had been composed until the end of the 3rd quarter.

13,852
1,265

5,000

ADVANTAGE CLUB (Real estate transactions)

FY2022 Q3ADVANTAGE CLUBSTO
Other real estate transactions

FY2023
Q3

 Provision of real estate other than ADVANTAGE
CLUB and rental income when real estate is held
is recorded.

© 2023 Aoyama Zaisan Networks Group16

BS Highlights（Financial Strategies)[Basic Policy] We have constantly secured cash and deposits of 10 billion yen to cover personnel expenses and expenses for the next two years.
In addition, a 5-year commitment line of credit with a term equivalent to that of the equity has been established in case of any economic risk. We
maintain negative net debt.
[Real estate for sale inventory policy] We will continue to expand the formation of ADVANTAGE CLUB, but we will continue our policy ofcompleting the offering in advance and establishing funds for ADVANTAGE CLUB on the same day as the purchase and settlement of real estate,
and we will not continuously carry any inventory (Properties under renovation will be held).
There is no impact from the interest rate hike due to our policy of not holding real estate inventory.
※ Our real estate for sale and interest-bearing debt temporarily increased due to the acquisition of real estate for sale in September for forming
funds for ADVANTAGE CLUB Kagurazaka-dori, but the real estate was sold and repaid on November 10.

Total assets 21,757 million yen

Total assets 22,572 million yen

Interest-bearing liabilities
2,152Interest-bearing liabilities
2,031
Residual borrowing
period 12 years

Other than the above
Interest-bearing
liabilities
5,981

Other than theabove Interestbearing liabilities
6,799

Residual borrowing period
13 years

Cash and deposits
12,804

Cash and deposits
11,827

Other liabilities 5,303
Real estate for sale 3,635
Real estate for sale 1,751
Real estate for rent
2,271

Other assets 4,931

Real estate for rent
2,196
Net assets 8,320（Equity ratio: 38.0%)

End of FY2022

Other assets 4,913

Other liabilities
4,942

Net assets 8,799（Equity ratio 38.7%)

End of FY2023 Q3© 2023 Aoyama Zaisan Networks Group17

Section 3

Shareholder Return Policy

Shareholder Return Policy
１

Dividend payout ratio of 50% or more

２

Continuous dividend increases
Maintaining DOE level above cost of equity

３*We assume a cost of equity of approximately 8%.

FY2020

FY2021

FY20223-year average

TargetDividend payout ratio

80.3%

45.7%

50.1%

58.7%

50% level

DOE

10.2%

10.1%

11.0%

10.4%

10% level© 2023 Aoyama Zaisan Networks Group19

Changes in Dividends（Unit : yen)

We have already increased dividends for 12 consecutive terms, and we are planning to increase dividends

for 13 consecutive terms this fiscal year.

41.0円

3.0

We have the policy to increase dividends for 14 consecutive fiscal years during the third mediumterm management plan period.

35.0円

3.0

Since the probability of realization in FY2023 has increased, we have decided toincrease the year-end dividend by 3 yen, from the original 23 yen to 26 yen,which will bring the dividend payout ratio to 50% level.

25.0円
2.5

26.5円

16.5
12.5

11.5円
7.5円

Interim dividend
Commemorative dividend
2.5

3.25

3.75

2010

2011

2012

31.5%

86.1%

Dividend
payout ratio 64.1%

5.0
5.0

17.0

14.0

15.0円

9.0円

23.0
22.0

19.5円

Year-end dividend

28.0円

9.5
7.5

6.5
4.0

5.5

7.0

8.5

10.0

11.0

13.0

15.0

2022

2023

2.5

2.5

2013

2014

2015

2016

2017

2018

2019

2020

2021

54.0%

48.4%

40.7%

46.2%

45.0%

38.3%

35.7%

80.3%

45.7% 50.1%

2024

48.9%

※On September 1, 2021, a stock split (two-for-one stock split) was implemented, and the dividend amount was replaced by a dividend amount that takes the split into account.
© 2023 Aoyama Zaisan Networks Group20

Section 4
 Company Profile

Appendix Market Environment
 Strategic Personalized Services
 ADVANTAGE CLUB
 Progress in Digital Transformation
 IR activities this fiscal year ESG/SDGs Initiatives

 Book and Seminar IntroductionCompany Profile
Company Profile
Trade name

Aoyama Zaisan Networks Co., Ltd.

Listed market

Tokyo Stock Exchange Market Standard（Securities Code ：8929）

Head Office

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

Incorporated

September 17, 1991

Capital1,210,990,000 yen ※as of June 30, 2023

No. ofemployees

297 (Group) ※as of June 30, 2023

Business line

Comprehensive individual asset consulting
Business succession consulting
Real estate solutions consulting∎ Listed company specializing in asset consulting and business succession consulting

Majorcharacteristics∎ A group of more than 150 professionals from the real estate industry and financial institutions,
including tax accountants, certified public accountants, and lawyers∎ It has strengths in equity and shareholder solutions and real estate solutions© 2023 Aoyama Zaisan Networks Group22

Corporate History
History of the Company
1990s

2000s

1999

Sep. Funai Zaisan Dock Inc was established as a group company of Funai Research Institute Co., Ltd.
Apr. It changed its name to Funai Zaisan Consultants Co., Ltd.

2002

May

ADVANTAGE CLUB started

Jul.

Listed on the Mothers market of the Tokyo Stock Exchange

1991

2004
2008

Oct. Management integration of Progest Holdings Co., Ltd.

2011

Jan. Established Aoyama Wealth Management Pte. Ltd.

2012

Jul. Funai Zaisan Consultants, Co., Ltd. changed its name to Aoyama Zaisan Networks Co., Ltd.

2013

Oct. Management integration of Japan Asset Research Institute Co., Ltd.
May Market was changed to the Second Section of the Tokyo Stock Exchange.

2015
2016

2010s
2017
2019

Jan. Shinsei Aoyama Partners (joint venture with Shinsei Bank, Ltd.) was established.
Aug. Established Business Succession Navigator Inc. as a joint venture with Japan M&A Center Inc.
(currently Next Navi Co., Ltd.)May PT Aoyama Zaisan Networks INDONESIA was established in the Republic of Indonesia
Oct. Completed construction of "Komatsu A×Z Square," the first project for regional development

Feb. Formed capital and business alliance with Capital Asset Planning Co., Ltd.
Dec. Aoyama Zaisan Networks Kyushu Co., Ltd. established as a joint venture with HAC Group and Shinohara

CPA Office Group.
2020

2020s

2021
2021
2022

Sep. Appointed Chairman of the Council of Real Estate Specified Joint Enterprises
Oct. Established Aoyama Financial Service Co., Ltd.
Jan.

Established Aoyama Family Office Service Co., Ltd.

Sep. The 30th anniversary of establishment
Aug. Completed construction of TSURUGA POLT SQUARE otta, the second project for regional
development© 2023 Aoyama Zaisan Networks Group23

Management Objectives and Business Description
Management
objectives
Business
description

Client types

Contributing to the happiness of our clients through the succession,
operation, and management of their assets
Consultation on achieving optimal asset composition and maximizing cash flow

〈 Comprehensive Asset consulting 〉

Individual asset owners(Landowners and financiers)

Business owners(Managers)

Average assets: 1 billion yen

Solutions∎ Inheritance measures∎ Effective use of real estate∎ Extensive land utilization∎ Real estate purchase and selling,etc.

∎ Business succession (Successor support）∎ M&A∎ Support for changing or closing a business∎ Financial improvement and growthstrategies, etc.

∎ ADVANTAGE CLUB, regional development projects and overseas asset management,
Financial product consulting by IFA*
*Provided by Aoyama Financial Service Co., Ltd. (Kinchu) No. 939, a group company© 2023 Aoyama Zaisan Networks Group24

Business for Individual Asset Owners
Problem Solving
Solutions

1st yearWishing to makeeffective use ofland

Compensation forproblem solving

3rd yearWishing torecombine myassetsOptimal asset structure
for each stage of life

Consulting by building
ongoing connections

Individual asset
owner
1Xth year

Having trouble
with inheritancedivision

No. of individual asset clients
Ongoing support
through advisory
contracts

Approx. 2,100Monthly advisory
contract fee© 2023 Aoyama Zaisan Networks Group25

Business for Business Owners
Problem Solving
Solutions

1st year
Having trouble withstock consolidationor businesssuccession policy

Compensation forproblem solving

3rd yearby resolving issues such as
business succession and asset
management at the mostappropriate time for our clients

Having trouble
with growthstrategy
Businessowner

1Xth year
Having trouble withmanaging financial
assets obtained
through M&A.

Monthly advisory
contract fee

Long-term ongoing
consulting

No. of business owner clients
Ongoing support
through advisory
contracts

approx. 500 persons© 2023 Aoyama Zaisan Networks Group26

Features of the Business Model

Solving clients’ problems and building long-term relationships

Current generation

Individual
asset owners

Succession, operation andBusiness management of assets,
Business succession

ownersNest generation

The generation after next

Succession, operation andmanagement of assets,,
Business succession

The business model that generates profit
over the long termby consulting from the current generation to the next and beyond© 2023 Aoyama Zaisan Networks Group27

Net Sales and Operating Profit after Listing（Net sales: Million yen）

（Operating profit: Million yen）

Sublease, other

Resale of real estate

Asset consulting

Operating profit

Since listing, revenues andprofits have increased due
to aggressive real estate
sales

35,000〈Advantage Club〉

3,500

Significant losses wererecorded on real estate
inventories due todeteriorating real estatemarket conditions

30,000Consulting real estate transactions

Policy of not acquiring
real estate for resale.
Shift to financially soundmanagement

3,000

2,500

25,00020,0002,000

15,0001,500

10,000

1,000

5,000

500

0

0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

-4,000© 2023 Aoyama Zaisan Networks Group28

Changes in ROE and ROIC
ROE

Target: 20% level or higher (Estimated to be around 23% in FY2023)

ROIC

Target: 10% level or higher (Estimated to be around 13% in FY2023)
ROE

35.0%
30.0%

ROIC

31.1%
28.6%

25.0%

22.0%

22.0%

20.0%
15.0%

13.4%

13.0%

12.7%
12.2%
8.0%

10.0%

10.0%

5.0%
0.0%
2018年度FY20182019年度FY20192020年度FY20202021年度FY20212022年度FY2022© 2023 Aoyama Zaisan Networks Group29

Changes in number of clients, asset consulting sales, and sales per clientPOINT

The sales of asset consulting expanded due to an increase in the number of clients.
The average amount of customer spending in FY2023 is estimated to slightly increase at the level of around 2.7 million yen.
Sales per client

Sales perclient

3,333
2,794

(Unit: thousand yen)

2.60 - 3.30 million yen

Average
3,230

2,810

2,802

3,052

5,564

3,048

5,806

2,671

2,950
2,610

6,204
5,545

4,909
3,928

Sales ofasset
consulting

3,123
2,450

2,366

(Unit: Million yen)

No. ofclients

2,076

1,905

1,823

1,752

1,398

967

847

735

2,377

(Unit: persons)
End of FY2014

End of FY2015

End of FY2016

End of FY2017

End of FY2018

End of FY2019

End of FY2020

End of FY2021

End of FY2022

End of FY2023

End of FY2024

End of FY2014 End of 2015 End of FY2016 End of FY2017 End of FY2018 End of FY2019End of FY2020 End of FY2021 End of FY2022 End of FY2023 End of FY2024（Panned)(Planned)© 2023 Aoyama Zaisan Networks Group30

Japan’s Population Trends
 Elderly population over 65 years old will continue to rise
POINT  Demand in the inheritance market is expected to increase as the population ages
（10 thousand people）
Population under 14 y.o.
14,00012,32812,0001,489

12,544

1,826

12,6702,201

12,7292,567

12,7082,925

12,5203,342

12,4103,612
29%12,066
3,657
30%

6,000

11,212
33%

8,716

38%

39%

8,409

8,103

39%

40%

40%

10,728
10,221

32%

35%
9,708

3,741
3,868

3,856

3,768

20%

15%

4,000

36%

23%
8,622
17%

9,193

3,626

8,674

25%
3,464

7,592

7,341

7,085

6,773

6,343

15%
5,787

5,353

5,001

4,706

4,418

2,000
2,001

1995

10%
5%

1,847

1,752

1,680

1,586

1,457

0
1990

30%

20%

12%

2,249

（％）
45%

11,662

3,685

27%

8,590

Aging rate

Estimated value

10,0008,000

Population of over 65 y.o.

Population of 15～64 y. o.

2000

2005

2010

2015

2020

1,324

1,204

1,129

1,073

1,012

939

861

791

2025

2030

2035

2040

2045

2050

2055

2060

Source: “Information and Communication White Paper: The Coming of Society with a Declining Population, 2016
Edition” prepared by Ministry of Internal Affairs and Communications
https://www.soumu.go.jp/johotsusintokei/whitepaper/ja/h28/html/nc111110.html

0%© 2023 Aoyama Zaisan Networks Group

31

Environment Surrounding Individual Asset Owners 〈Inheritance Market〉
POINT

Cash, savings, and securities account for 50% of inherited assets, and there is still a great needfor tax financing measures by reviewing asset portfolios.

Inheritance tax return results <Tokyo / 2021>①

No. of affected persons (No. of deceased)

127,649②

No. of decedents for filing ofinheritance tax returns

23,130③

Tax ratio (②／①)④

No. of heirs who are inheritance tax
payers⑤

Taxable amount

4,279.0 (billion yen)⑥

Amount of tax

746.9（billion yen)⑦⑧

Composition Ratio of the Amount of Money in Inherited Properties <Tokyo / 2021>

Other
9.6％

18.1％
50,706

Cash /
saving, etc.

Amount of tax (⑥/②)

36.5％

28.7％

Taxable amount (⑤/②) 185,000 (thousand yen)
Per person

Land32,290 (thousand yen)*Source: Summary of inheritance tax returns for 2021 prepared by Tokyo Regional Taxation Bureau

Securities

20.7％

4.5％
Houses© 2023 Aoyama Zaisan Networks Group32

Environment Surrounding Individual Asset Owners 〈Inheritance Market〉
 Reform of the Tax system in 2013 ※ Effective on January 1, 2015
Reduction in the basic inheritance tax exemption and an increase in the maximum tax rate to 55%
The number of taxable persons increased sharply and taxable ratio increased significantly

POINT

No. of taxable heirs <Tokyo / Chiba / Kanagawa / Yamanashi>
Unit: thousand people
45
40

42.9

35
30

No. of taxable heirs
32.2

25

32.9

35

36.8

36.1

2018

2019

38.3

20
15
10

16.4

17.3

18.1

18.6

2011

2012

2013

2014

5
2015

2016

2017

*Source: Summary of inheritance tax returns for 2021 prepared by Tokyo Regional Taxation Bureau

2020

2021

© 2023 Aoyama Zaisan Networks Group

33

Environment Surrounding Business Owners 〈Business Succession Market〉
 The average age of presidents has increased over the years and is now over 60 years old
 The rate of successor absence remains high

POINT

Average age of presidents（throughout Japan） The rate of successor absence（throughout Japan）

1990

2021

2011

2022

Average age of presidents

Average age of presidents

The rate of successor absence

The rate of successor absence

54.0 y. o.

(歳)

60.3
y.o.

54.0
y.o.

65.9

66.5

66.4

65.2

65.1
61.5
57.2

The rate of successor absence remains high~~Source: Reorganized and processed based on the Teikoku Databank’s
National President Age Analysis (2021) data.

57.2％

(％)

70
68
66
64
62
60
58
56
54
52
（年） 50

21
2020
19
18
17
16
15
14
13
12
11
2010
9
8
7
6
5
4
3
2
1
2000
99
98
97
96
95
94
93
92
91
1990

62
61
60
59
58
57
56
55
54
0
53

65.9％

60.3 y. o.

2011

2017

2018

2019

2020

2021

2022

Source: Reorganized based on data from Teikoku Databank's "National Survey of the rate of successor absence 2022"© 2023 Aoyama Zaisan Networks Group34

Strategic Personalized Services
Incorporate strategic personalized services into

Effective
land use
consulting

Family officeservices

Regional
development
consulting

Total asset
consultation

Comprehensive Asset Consulting

ADVAN
TAGE
CLUB
Purchase
consulting

Comprehensive
Asset
Consulting

Financial
product
consulting
by IFA

Business
succession
fund

STO
business© 2023 Aoyama Zaisan Networks Group

35

8 Strategic Personalized Services
ADVANTAGE CLUB（ Small-lot real estate
product ）A real estate leasing system in which real estate with high asset value, mainly in the three central
wards of Tokyo, is purchased jointly and profit is received through real estate leasing.

Purchase consulting

Consulting services for the sale of profit-producing real estate in central Tokyo and total property
management after sales.

Effective land use
consulting

Our dedicated team of effective utilization specialists will consolidate your land information andtenant store opening information for land in the Tokyo metropolitan area, and assist you in planningand executing effective land utilization.

Family officeservice

For family businesses of a certain size, this service provides support for the creation and operationof a system that enables the family and the family business to prosper in perpetuity.

Regional development
consulting

Using our expertise in the Real Estate Specified Joint Enterprise Act and financing, we willdevelop and operate real estate such as idle land and aging public and utility facilities that willlead to regional revitalization through investments by our customers and other public and private
entities.

Business succession fundA service that supports companies with losses but excess assets, etc. through succession funds,
mainly for the purpose of reducing or reorganizing the size of the business, maintaining
employment, and preserving the owner's assets.

Financial product consulting by
IFA

The most typical securities management services, global equity and global receivables-based
long-term financial product management support.

STO businessWe provide STOs (security token offerings), which are securities backed by income-producing
real estate that can now be issued under the amendments to the Financial Instruments andExchange Act in 2020.
© 2023 Aoyama Zaisan Networks Group36

Structure of ADVANTAGE CLUB

Voluntary Partnership③ Association composition

Project Participants
Voluntary Partners (investors）

2

1

Monetary
investment
10 million yen
per unit

9

Execution of Real Estate Distribution ofSpecified Joint
ProfitEnterprise Agreement(Voluntary Partnership
Agreement ）4

Acquisition oftarget realestate5 LeasingTarget Real Estate

Master Leasing Company
Aoyama Sogo Estate Co., Ltd.

8 RentBoard
ChairmanReal Estate Specified Joint Enterprise
Aoyama Zaisan Networks Co., Ltd.

Management business decision
making and administrative
affairs representation

6 Subleasing

7 RentTenants© 2023 Aoyama Zaisan Networks Group37

ADVANTAGE CLUB’s Composition Results
POINT

 Sales of memberships were completed shortly after we started offering the memberships of ADVANTAGE CLUB, and it
turned out the needs for the memberships were extremely high.
 Further improvement of sales capabilities by strengthening ties with partner financial institutions such as regional banks andsecurities firms
 We use ADVANTAGE CLUB as an introduction and solicit clients to comprehensive asset consulting.

Kyobashi Takaracho

Akasaka

Tsukiji• Implemented in June 2023 • Implemented in March 2023

• Implemented in Dec. 2022

• Total amount of investment • Total amount of investment• Total amount of investment
1.7５ billion yen
5.9 billion yen
4.9 billion yen

882.8■New composition amount■Existing cumulative composition amount(Unit: 100 million yen)

509.3
42.5

End of 2017

574.5
65.2

End of 2018

627.5
53.0

End of 2019

720.3

1,167.7

284.9

162.5

92.8

End of 2020

End of 2021

End of 2022

End of 2023
(Planned)

End of 2024
(Planned)© 2023 Aoyama Zaisan Networks Group38

ADVANTAGE CLUB (AD) Long-Term Profitability Model
POINT The keys to monetizing AD are its "composition," "operation and management," and "dissolution”
 Long-term revenue model proportional to the number of AD compositions
Monetization Point

Composition-to-dissolution Cyclic Model

Acquisition &Composition of
VoluntaryPartnershipSale of Real Estate

Acquisition andSale of Real Estate

Composition of
Voluntary Partnership

Dissolution

Approx. 15 years
・・・

Breakdown

Real estatetransaction

Revenueclassificat

Administration

ProfitDissolution

Administration

Real estatetransactions

Administration
fee forcomposition

Management fee

Brokerage fee
Administration fee fordissolution

Asset consulting（Product composition, etc.）© 2023 Aoyama Zaisan Networks Group39

ADVANTAGE CLUB’s Reimbursement Results (Dissolution of association through sale of property)

POINT Since 2010, we have comprehensively assessed real estate market trends, property conditions
and occupancy levels, etc. 31 properties are sold by resolution of the association members andthe proceeds are distributed to the association members.
Part of the properties sold (Generally, the company considers selling after 6 to 8 years of partnershipformation. The prospect of sale is approximately 10 years after the formation of the cooperative.)

Roppongi
3 chome

GotandaNIhonbashi

Nihonbashi
odenmacho

Shibuya

Kyobashi
Bldg.

Shinjuku
A-ONE
Bldg.

Ginza 8
chome

Tokyo
Yaesu Exit

Kyobashi
Chuo

Performance of property sales （Average of 31 associations dissolved due to property sales ）Per property（1000 yen）※Rounded to the nearest thousand yen
Average
operation
periodAmount ofcomposition A

9 years and3 months

10,000average sales
priceprofit and loss on
sales

11,137

1,137

B

C（B-A）

Accumulated
average
distributions
D

4,529

Averagedifferentialbalance
（C+D）

5,666

Simplyaveragedannualized
yield（roughestimate）

6.12 ％© 2023 Aoyama Zaisan Networks Group40

Progress in Digital Transformation
POINT

Promoting digital transformation in consulting and in the product area

Attracting
clients

Up tothepresent

DX
currentlyinprogress

Referrals
from Partners

DirectMarketing

Promoting automatedresponses to leads
attracted and acquired
through web advertising

DigitalTransformation of
Products

Consulting Process
Analysis of current
situation

Proposal

Execution

Review〈PDCA〉

Consulting for
the Next
Generation

Accumulated consultants’ expertise to respond to their needs

Interactive Tool (App)ART System
After inputting customer data,
speedily analyze issues and present
options for countermeasures

Providing added
value as before
through consulting
expertise

Utilizing ChatGPTStarted using it as a tool for information
dissemination and daily communication.
Its application and contract are scheduled to
begin next fiscal term.

Currently approximately 500
persons started to use them

Real Property STO 〈Digital securities 〉© 2023 Aoyama Zaisan Networks Group41

IR Activities for This Fiscal Year
POINT

Expanded opportunities for dialogues with shareholders and further IR activities
after June

1

Enhancement of overseas IR

２

Active IR Activities

 We implemented our first overseas IR roadshow.
We had interview meetings with about 20 institutional investors in New York, San Francisco,etc. in the US in August. We are planning to have an overseas IR roadshow in Asia next time.

 A briefing for individual investors was held in June. Another briefing is scheduled to beheld in November.
 A small meeting for institutional investors was held on August 25.
 Approximately 150 IR meetings were conducted in FY2022. 200 IR meetings are scheduled
to be held in FY2023, which will be a significant increase over last year.
 We published integrated report in May 2023 for the third year in a row.

3

 Proactively disclose our human capital management initiatives and responses to TCFD in our Annual
Securities Report, Integrated Report, and website, etc.

Other

 Creation of introductory materials and an introductory video for our supportive engagement byinstitutional investor Hibiki Perth Advisors, Inc.
 Our company’s report was published by Astris Advisory Japan KK.
（Posted on our website in August)© 2023 Aoyama Zaisan Networks Group42

ESG/SDGs Initiatives〈Relationship between ● We recognize that addressing climate change is an important management issue
the SDGs and business〉affecting business continuity, and in particular, we view CO2 emissions from realE

Environment

estate-related business activities as a major risk affecting climate change. Therefore,
we have positioned our environmentally friendly initiatives as those that cancontribute to enhancing asset value and solving social issues.
・Promoting the switch to facilities with low environmental impact in the "ADVANTAGE
CLUB“ and electric power using clean energy.
・Endorsement and disclosure of the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).
・Contributing to a recycling-oriented society by promoting water conservation and waste
reduction in cooperation with the tenants of the ADVANTAGE CLUB in which it operates.
・For land utilization and construction support, ESG perspectives will be incorporated into
the analysis of current conditions, and materials and paints will be used to promote the useof equipment with low environmental impact.

●We will contribute to our customers and society by upholding and maximizing the "improvement ofS

SocietyG

Governancehuman resources" as our management capital.
・Improving employees' human skills and promoting employees' own social contribution activities.
・Developing a mechanism for early entry into the workforce through the introduction of an education system,
online education, etc.
・Increasing the percentage of female employees from approximately 30% to 40% and the percentage offemale managers from approximately 19% to 30%.
●We will contribute to society by forming partnerships in asset preservation and in the community.

・Contributing to welfare by utilizing land for childcare and senior facilities and providing architectural support,
as well as attracting hospitals, clinics, and other facilities of public and charitable nature.
・Contributing by creating a mechanism to give back to society by supporting the establishment of foundations.
・Contributing to urban development and the creation of local employment through partner collaboration (publicorganizations, financial institutions, and businesses) in regional development projects.

 Established a Nominating Committee and a Compensation Advisory Committee to establish an
appropriate management structure for the Company through the appointment and dismissal of
directors and succession planning (Succession Plan).
● We operate a Compliance Committee to promote legal compliance and a Compensation Advisory
Committee to ensure fairness and transparency.
43© 2023 Aoyama Zaisan Networks GroupPublication of 3 books
POINT Published 3 books on inheritance and business succession.
 We will further strengthen our efforts to attract new clients through the book and publication
seminars,Released on October 30, 2021

Publisher: NIKKAN KOGYO SHIMBUN,LTD.
Price: 1,500 yen（tax excluded）

The concept, measures, and case studies are
introduced in an easy-to-understand manner tohelp managers of small and medium-sizedenterprises find the best exit for their business,such as when they have concerns about businesssuccession.

Released on November 11, 2021

Publisher: Nikkei Business Publications, Inc.
Price：1,600 yen（tax excluded）

When land-owning asset holders andfamily business owners are concerned
about inheritance and succession, we
introduce how to find the "bestinheritance strategy" to solve theirproblems from "five perspectives" in linewith the concept of "holistic
optimization".

Released on February 1, 2022

Publisher: Nikkei Business Publications, Inc.
Price: 1,500 yen（tax excluded）

When family business owners are worried
about inheritance and succession.... Through 19
examples of failures caused by measures
without "thought," "understanding," and"appreciation," this book introduces tips on
how to successfully promote businesssuccession.
© 2023 Aoyama Zaisan Networks Group44

Conducting seminars
POINT Seminars on asset and business succession are regularly held.
 We will continue to further strengthen our contacts with new clients through seminars.

© 2023 Aoyama Zaisan Networks Group45

Please refer to the following URL for our IR information.
https://www.azn.co.jp/ir

Aoyama Zaisan Networks Co., Ltd.
Corporate Finance Division
TEL 03-6439-5824 FAX 03-6439-5851
The statements in this document regarding earnings forecasts and other forward-looking statements are forecasts based on
judgments made in accordance with information available at the time this document was prepared, and involve potential risks
and uncertainties. Accordingly, please be aware that actual results may differ from these forecasts due to various factors.
© 2023 Aoyama Zaisan Networks Group