First Half Business Summary for Fiscal Year 2016 (26th period)
January 1 to June 30, 2016

Aoyama Zaisan Networks Provides
the Most Comprehensive Asset Management Solutions

President

Masazumi Hasumi

We at Aoyama Zaisan Networks Co., Ltd. have set the management objective of “contributing
to the happiness of our customers through the management, administration, and succession ofproperty” and, in accordance with the objective, we are offering one-stop and comprehensive
property consulting primarily to individuals and business owners from the three perspectives ofproperty succession, business succession, and property management.
Although the Japanese economy has been on a modest recovery trend as corporate earnings andthe employment improved on the back of monetary easing, the drop in the Nikkei average andyen appreciation since the start of the year have clouded the outlook for corporate earnings andpersonal spending. Uncertainties are also heightening for the global economy given theslowdown in emerging economies and events such as Brexit and the upcoming US presidential
election, which will have a significant impact on the economy. In addition, the path to fiscal
health remains steep, and we expect the increase in the maximum rate for inheritance taxes andthe reduction in basic deduction amounts, which went into effect last year, and the introductionof the “My Number” personal identification number system this year to add momentum toreinforced tax collection efforts targeting wealthy people.
As a result, many people feel more concerns about inheritance, concerns that their land mightcease to be “an asset,” concerns that the value of their yen assets might erode, etc. and sointerest in inheritance strategies and protection of property has become higher than ever before.
We believe that we can achieve smooth property and business succession and accurate property
management by offering comprehensive property consulting consisting of “accurate analyses ofthe present state,” “a clear direction,” “specific planning and reliable execution” and “review ona regular basis” and everyone at our company is working together to provide a high-quality
property consulting service.

Business Results for the First Half of Fiscal Year 2016
Highlights of Consolidated Business Results (unit: million yen, rounded down to the nearest million)

Revenue
15,00014,800Ordinary income
600

570
540

Profit attributable to owners of parent
600
550

12,500500

500

10,000400

400

Revenue by Segments (unit: million yen, rounded down to the nearest million)
100%
90%

63
640

80%
70%
60%

7,500

5,000

6,912
5,263

2,500

307

300

200

201

100

310

300

50%

First half ofFirst half of
Forecast for
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2016
(25th period)(26th period)(26th period)

0

166

4,786

30%
20%

100

First half ofFirst half of
Forecast for
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2016
(25th period)(26th period)(26th period)

3,403

40%
200

10%
0

26
563

0

First half ofFirst half of
Forecast for
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2016
(25th period)(26th period)(26th period)

The above forecasts are based on the information available as of the preparation of this document, involving some uncertainty. Actual business results
might prove different from these forecasts, depending on the changes in business conditions.

0%

1,156

1,536

First half of
Fiscal Year 2015
(25th period)First half of
Fiscal Year 2016
(26th period)

Other revenue
Revenue from sublease
Revenue from real estate transactions
Revenue from asset consulting

01-02

Operating Report
In the first half of the fiscal year under review, the Japanese economy wassolid as corporate earnings and employment conditions improved based on
the effects of government policies. However, the yen strengthened and thestock market softened at the start of the year, followed by the Bank ofJapan’s introduction of negative interest rates. This, coupled with aslowdown in emerging economies and the UK’s decision to leave theEuropean Union, means that the outlook remains uncertain. In the real estateindustry, which has a substantial effect on the Group, the bipolarization
between land prices in urban areas, such as Tokyo, and in regional cities has
become extremely pronounced. In particular, purchasing demand is rising
sharply in the income property market in Tokyo’s five central wards.
The Group believes that people must have “financial, physical andemotional well- being,” as well as a balance between these three, to be
happy. The Group focuses on the “financial” part of this equation byaugmenting its customers’ economic foundation, bringing happiness throughconsultation services on succession, management and administration of
personal properties, as well as consulting on corporate business succession
and real estate solutions, such as the effective use, purchase and sale of realestate, which accounts for two-thirds of individuals’ properties. These
financial consultation services are based on the Group’s belief that financial
assets are the foundation for leading a happy life.
Japan’s social environment faces major changes, such as a declining
population and the aging of the baby boom generation. We believe that it isessential that we accurately ascertain the need for business succession, asset
investment and inheritance measures expected to continue over the next 20
years, and as such we run our comprehensive asset consulting business withthe aim of standing by our customers and guiding them in a better direction.
Based on its management principle of “we will remain your best partner
over one hundred years,” the Group brings together its expertise, humancapabilities and a dynamism that enables it to meet customer expectations at

all times, thus satisfying its customers as an independent comprehensive
asset consulting company.
We have begun our first local revitalization project as a real estate specified
joint enterprise utilizing a special purpose company (SPC), permitted under
the revised Real Estate Specified Joint Enterprise Act. In response to theopen call for private business operators for the construction of a mixed-use
building in Komatsu City, Ishikawa Prefecture, we proposed a projectutilizing this business scheme jointly with Shimizu Corporation, and were
granted first refusal rights on October 21, 2014. This multi-purpose buildingon the site of the former Daiwa Komatsu store in front of JR Komatsu
Station is the keystone of Komatsu City’s urban revitalization plan, and will
include the Hotel Grand Binario KOMATSU (provisional name), retailshops, a book café, a play area for children and the public Komatsu College(provisional name).
A basic agreement was signed on June 30, 2016, by the four entities
involved, namely Komatsu City; Joint Corporation Aoyama Life Promotion,
the SPC that will construct and own the building; the Aoyama Zaisan
Networks Group, which will undertake asset management for the SPC; andKomatsu Revitalization Center Corporation, Komatsu City’s third sector. A
groundbreaking ceremony was held for this multi-use building on the sameday, and construction is expected to be completed in autumn 2017.
The need for redevelopment projects targeting the area near train stations
and urban redevelopment projects is rising, particularly in regional cities.
We will be actively involved in regional development projects to contributeto regional economic development as part of our contributions to society.
Meanwhile, we will continue to actively operate ADVANTAGE CLUB®.
As a result, revenue totaled ¥6,912 million (up 31.3% over the previous fiscal
year), operating income was ¥424 million (up 125.0%), and ordinary income
amounted to ¥307 million (up 52.5%) in the first half of the fiscal year. Net
income attributable to owners of parent totaled ¥310 million (up 86.8%).

Consolidated Financial Data in the Second Quarter
Million yen, rounded down to the nearest million

Consolidated Balance Sheet
Term
Item
AssetsCurrent assets
Cash and deposits
Accounts receivable
Securities
Real estate held for sale
Other inventories
Deferred tax assets
OthersAllowance for doubtful accounts
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Total assets

Fiscal Year 2015

First half of Fiscal Year 2016

Dec. 31, 2015

Jun. 30, 2016

5,299
4,093
231
−
765
11
120
102
(26)
1,921
137
322
1,460
7,220

9,309
4,577
215
220
3,941
2
206
187
(41)
2,584
135
369
2,079
11,893Term
Item
Liabilities
Current liabilities
Fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Accumu lated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Subscription rights to shares
Total net assets
Total liabilities and net assets

Fiscal Year 2015

First half of Fiscal Year 2016

Dec. 31, 2015

Jun. 30, 2016

2,453
1,856
4,310

5,782
2,981
8,763

2,694
1,044
750
898
194
194
(0)
20
2,909
7,220

2,877
1,057
763
1,056
237
239
(2)
15
3,130
11,89303-04

Consolidated Financial Data in the Second Quarter
Million yen, rounded down to the nearest million

Consolidated Income Statements
Term
Item
Revenue
Operating cost
Gross operating income
SG & A
Operating income
Non-operating revenue
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProtit attributable to owners of parent

Consolidated Cash Flows
Term

First half of Fiscal Year 2015 First half of Fiscal Year 2016
from Jan. 1, 2015
to Jun. 30, 2015

from Jan. 1, 2016
to Jun. 30, 2016

5,263
4,327
936
748
188
33
20
201
0
−
201
35
−
35
166
166

6,912
5,597
1,315
890
424
12
129
307
−
1
305
80
(85)
(5)
310
310

First half of Fiscal Year 2015 First half of Fiscal Year 2016
from Jan. 1, 2015
to Jun. 30, 2015

from Jan. 1, 2016
to Jun. 30, 2016

Cash flow from operating activities

642(3,000)Cash flow from investing activities

(19)

(676)

Cash flow from financing activities

(504)

4,421

(0)

(39)

118

704

3,069

4,093

13

−

3,201

4,797

Item

Effect of exchange rate change on
cash and cash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at
beginning of period
Increase in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period

TOPICS
T

O

P

I

C

1

Joint venture established with Nihon M&A Center
On August 4, 2016, we established the Business Succession Navigator Corporation, a joint venture with
Nihon M&A Center Inc., to provide comprehensive consulting services on business succession and asset
utilization.
The Group formed a business affiliation with Nihon M&A Center so that we could provide one-stop
consulting while offering a range of options for customers’ business succession by utilizing each other’s
strengths on asset succession for business managers.
We believe that providing support to the many business managers struggling with successor issues during
the process of deciding on a successor will be even more important going forward. For this reason, weestablished Business Succession Navigator, which will combine the knowledge of those who haveexperienced business succession (primarily the Group’s and Nihon M&A Center’s clients) with theexpertise of professionals to provide new services.

Nihon M&A Center Inc.
Suguru Miyake, President

05-06

T

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P

I

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2

Start of local revitalization projects
The Group launched a series of local revitalization projects, using a scheme whereby a real estate specified joint enterprise utilizes a special purpose
company (SPC), permitted under the revised Real Estate Specified Joint Enterprise Act.
As our first such project, we partnered with Shimizu Corporation to present a joint proposal utilizing thisbusiness scheme in response to an open call for private business operators to construct a mixed-use building in
Komatsu City, Ishikawa Prefecture, and were granted first refusal rights on October 21, 2014. This multipurpose building on the site of the former Daiwa Komatsu store in front of JR Komatsu Station is the keystoneof Komatsu City’s urban revitalization plan, and will include the Hotel Grand Binario KOMATSU (provisionalname), retail shops, a book café, a play area for children and the public Komatsu College (provisional name).
A basic agreement was signed on June 30, 2016 by the four entities involved, namely Komatsu City; Joint
Corporation Aoyama Life Promotion, the SPC that will construct and own the building; the Aoyama Zaisan
Networks Group, which will undertake asset management for the SPC; and Komatsu Revitalization Center
Corporation, Komatsu City’s third sector. A groundbreaking ceremony was held for this multi-use building on
the same day, and construction is expected to be completed in autumn 2017.
The need for redevelopment projects targeting the area near train stations and urban redevelopment projects is rising, particularly in regional cities.
We will be actively involved in regional development projects to contribute to regional economic development as part of our contributions to society.

T

O

P

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C

3

T

O

P

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4

Dividend forecasts

Shareholder Incentive Plan

As a result of the revisions to the earnings forecasts announced on
May 11 and August 9, 2016, our interim and year-end dividends
per share will be as follows.

The Company provides benefits under the following conditions toshareholders recorded in the shareholder register as of June 30.

Fiscal year ended Fiscal year ended
in December 2016 in December 2016(previous forecasts) (revised forecasts)
First half of fiscal year

6 yen

8 yen

End of fiscal year

12 yen14 yen(forecast)

Total (annual)

18 yen22 yen(forecast)

Shareholders who hold1,000 shares or more

Shareholders who hold10,000 shares or more
continuously for over 1 year

Select 1 from 10 products worth
3,000 yen

A meal certificate from UKAI CO.,LTD. (20,000 yen) or Ukai special
select beef (worth 20,000 yen)

07-08

Stock Information / Corporate Data
Stock Overview(as of June 30, 2016)

Number of shares in issue

11,825,400

Number of shareholders

Incorporated
Capital stockBusiness line
Number of employees(Group)Consolidated
subsidiaries(as of June 30, 2016)

9 companies including Aoyama Estate Co., Ltd.,
Nihon Shisan Soken Co., Ltd. and Proggest Co., Ltd.

President
Director, Managing Executive Officer
Director, Managing Executive Officer
Director, Managing Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Outside Director
Outside Director
Outside Director
Standing Auditor
AuditorOutside Auditor
Outside Auditor

Overseas companies and others/27 (0.57%)
Securities firms/20 (0.42%)

Aoyama Zaisan Networks Company, Limited
3F Aoyama Tower Place, 8-4-14 Akasaka, Minato-ku, Tokyo 107-0052
Tel. +81-6439-5800
September 17, 1991
1,057.27 million yen
Individual property consulting, business succession
consulting and real estate solutions consulting
163 (as of June 30, 2016)

Executives

Other companies/67 (1.41%)

Total
4,743

Name
Masazumi Hasumi
MID Investment Co., Ltd.
Yasuo Takano
Mutsumi Shimada
The Master Trust Bank of Japan, Ltd. (trust account)
Tomio Sugimura
Eiichiro Iwase
Hiroko Iwase
Nihon M&A Center Inc.
Japan Trustee Services Bank, Ltd. (trust account)

Name of Company
Head Office

Individuals and others/4,624 (97.49%)

4,743

Major Shareholders (Top 10)

Corporate Data

Number of Shareholders by Category

Shares held
1,202,100
670,000
641,400
431,700
278,100
275,700
199,600
179,500
150,000
138,600

Shareholding ratio
10.17
5.67
5.42
3.65
2.35
2.33
1.69
1.52
1.27
1.17

Number of shares held by Category
Individuals and others/9,541,936 (80.69%)
Other companies/1,183,100 (10.00%)

Total
11,825,400

Overseas companies and others/403,200 (3.41%)
Securities firms/236,364 (2.00%)
Financial institutions/460,800 (3.90%)

Notes for Shareholder
Fiscal year
Base date for the determination of shareholders
with year-end dividend entitlements
Base date for the determination of shareholders
with interim dividend entitlements
General meeting of shareholders
Administrator of the shareholder registry/Accountmanagement institution for special accountContact(from June 30, 2016)

Masazumi Hasumi
Masayuki Yagi
Takeshi Matsuura
Yasuo Takano
Yoshikazu Mizushima
Seido Nakatani
Shinji Shimane
Takaomi Ogawa
Haruo Shimada
Keiji WatanabeMichihiro Nagasaka
Yoichiro Shimada
Hisao Nakatsuka
Keizo Sugita
Hiroaki Rokugawa

Financial institutions/5 (0.11%)

Account management institution
for special accounts
Contact
Stock exchange listings
Public announcements

January 1 to December 31
December 31
June 30in March
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation, Stock Transfer Agency Department
7-10-11, Higashisuna, Koto-ku, Tokyo, 137-8081
Tel. 0120-232-711(toll-free, Japan only)
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited, Stock Transfer Agency Department
2-8-4, Izumi, Suginami-ku, Tokyo 168-8507
Tel. 0120-782-031(toll free, Japan only)
TSE Second Section
To be announced on the Company’s website(For reference)
1. Due to the dematerialization share certificates, shareholders’ address changes, repurchase requests, and such other procedures, as arule, are filled with the account-administrating institutions where shareholders have their accounts (securities companies, etc).
Shareholders are requested to contact their account holding securities companies, etc., for information. Shareholders are remindedthat application filings cannot be made with the administrator of shareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. For information on procedures concerning shares recorded in special accounts, shareholders are requested to contact The Sumitomo
Mitsui Trust Bank, Limited, the account administration institution for special accounts. Shareholders are reminded that procedures
cannot be processed by Mitsubishi UFJ Trust and Banking Corporation, which serves as the administrator of the shareholder registry.
3. Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust and Banking Corporation, Head Office Branch.

09-10

List of Nationwide Network
Aoyama Zaisan Networks’ Nationwide Network(as of July 31, 2016)

NSSTPS Business Model Association* NSSTPS is the abbreviation for Nippon Shisan Soken Total Planning System.

Hokkaido, Tohoku

Kinki

Hokkaido, Tohoku

Kinki

Zaisan Networks Sendai Co., Ltd. (MISAWA BUSINESS MANAGEMENT INC.)
Zaisan Networks Fukushima Co., Ltd. (Aoki Accounting Corporation)
Aoyama Zaisan Networks Hokkaido Support (IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP)
Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant's Corp)
Aoyama Zaisan Networks Aomori Support (Konda Accounting Office)Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.)
Zaisan Networks Osaka Co., Ltd. (Nihon Keiei Tax Corporation)
Zaisan Networks Hyogo Co., Ltd. (Nihon Keiei Tax Corporation)
Seki Soken Zaisan Partners Co., Ltd (AZ TAX Tax Corporation)
Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office)Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT)
Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)

Chiso Tax Corporation
MISAWA BUSINESS MANAGEMENT INC
Aoki Accounting Corporation Inc.

HIROSE LICENCED TAX ACCOUNTANT
Seki Research InstituteUeda Certified Public Accountant Licensed Tax Accountant Office
Corporate Advisors Co., Ltd.

Kanto, Koshinetsu
Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office)Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute)
Zaisan Networks Kawasaki Co., Ltd. (Tokyo Japan Certified Tax Accountants’ Corporation)
Zaisan Networks Nagano Co., Ltd. (Mochizuki Tax Corporation)
Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office)Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation)
Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation)
Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)
Tokai, Hokuriku
Zaisan Consultants Kanazawa Co., Ltd. (Hatake & Starship Tax Corporation)
Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation)
Zaisan Networks Meinan Co., Ltd. (Meinan Consulting Network)
Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)

Chugoku, Shikoku
Zaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)
Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation)
Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office)
Kyushu, Okinawa
Zaisan Networks Fukuoka Co., Ltd. (SHINOHARA CPA OFFICE)
Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office)Aoyama Zaisan Networks Nagasaki Support (Chuo Sogo Accounting Office)Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)
Aoyama Zaisan Networks Miyazaki Support (Hasegawa Tax Corporation)

Kanto, Koshinetsu
Kujirai Tax Corporation
Kei Yo Research InstituteZeimu Sogo Tax Corporation
Nihon Mirai Accounting & Tax Co.
Nakamura Certified Public Tax Accountants Office
Corporate Advisors Co., Ltd.
eclat Consulting
Top Accounting Firm & co
Ai Partners Tax Corporation
Oyama accounting Co., Ltd
Masatoshi Yoshikawa Certified Tax Accountant Office
Koyama Sadao tax accounting office
Tokai, Hokuriku
ARIASU ZEIRISIHOUJIN.
Takemoto Accounting Office
MMPC Consultants Corporation
KIMURA KEIEI BRAIN CO., LTD.

Shikoku
Nonaka Keiei Corporation