Aoyama Zaisan Networks Company Limited

A o y a m a
Z a i s a n
N e t w o r k s

Full-YearBusiness Summary
for Fiscal Year 2023
(33 rd period)
January 1 to December 31, 2023

Securities Code: 8929

A o y a m a
Z a i s a n
N e t w o r k s

To Our Shareholders
We would like to express our deepest sympathies to all those who have beenand expanding systems and conducting training for consultants to achieveaffected by the 2024 Noto Peninsula Earthquake, and we sincerely hope for avisible results in productivity improvement and human resource training.

quick recovery.

A workplace that is easy to work in and fulfilling towork atFiscal year 2023 was the second year of the Third Medium-Term

3

Management Plan, covering the three years from 2022. This plan positions

By creating a workplace environment that is accommodating to various

the Company for a period for expanded growth as a property consulting firm.

personal circumstances so that everyone can work with peace of mind, we

In fiscal year 2023, the Company set new records for net sales and each item

aim to improve productivity and reduce employee attrition. Also, whileof profit, backed by expanding needs for property consulting. In order toaddressing such challenges such as career planning, work conditions, andrespond to the rising needs for property consulting, one of the key factors forpromoting the active participation of women, we will continue our efforts togrowth expansion, the Company is focusing on recruiting and humanachieve wage increase that exceed the increases in the cost of living as

resource training while accelerating efforts to develop an environment thatdemanded by the government, along with “salaries commensurate to roles,”supports our consultants by leveraging DX, AI and so forth. Moreover, we are

and “bonuses based on performance contribution.”

In fiscal year 2023, net sales increased to ¥36,098 million (¥35,952 million in the previous fiscal year)
mainly due to an increase in the sales from property consulting.
In addition, because of the increase in property consulting revenue, which provides good profitability, werecorded ¥3,265 million in operating profit (¥2,629 million in the previous fiscal year) and net profit per
share of ¥84.81 (¥69.82 in the previous fiscal year), resulting in both exceeding the actual results in theprevious fiscal year.

Net sales

1

Provide thorough education on how to accumulate
virtue centered on altruism to enhance human skills

4

Offering new services, following on from the eight individual
services, to meet the diversifying needs of our customers

and that interpersonal skills are also the most crucial for living a happy life.

closing of the second regional revitalization project of fiscal year 2022

We encourage active participation in social contribution activities (children’s(Tsuruga), and in fiscal year 2023, we conducted activities aimed at receiving

cafeterias, co-existence with pets in society, local clean-ups) and haveorders for large-scale projects. From fiscal year 2024 onwards, we will work

started to establish a public interest incorporated foundation to proactively

further on creating services, such as undertaking initiatives that actively

engage in social contribution activities as a Group.

strive for environmentally friendly
regional revitalization.
By advancing these initiatives, even in

We have established a marketing organization to identify the needs offiscal year 2024, which is the final year

customers who utilize marketing automation tools, and are promotingof the Third Medium-Term Management

initiatives to offer appropriate service solutions and information to thosePlan, we will harness the efforts of thecustomers. Moreover, while we have been able to increase number ofwhole company and do even better socustomers per consultant through making use of such tools as the ART

that we can generate continued growthsystem, we face some challenges, such as finding a suitable way toand greater corporate value.

horizontally deploy the insights and experiences gained by consultants to all

We ask that all of you continue to give us

consultants. We aim to digitalize the accumulated consulting know-how,your support.

consultant development. We plan to continue initiatives such as improving

2(Up 24.2% year-on-year(unit: million yen)

35,952 36,098

Dividends
per share(unit: yen)Interim

3,265

84.81
61.22

46.00

(forecast)

41.0

69.82

35.0
28.0

1,856

17.0
11.0

President

Masazumi Hasumi

Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024
(31st period) (32nd period) (33rd period) (34th period)

Year-end (unit: yen)

92.06

(forecast)

2,629

Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024
(31st period) (32nd period) (33rd period) (34th period)

41.0 yen)

3,500(forecast)

24,21384.81yen(unit: million yen)

38,000Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024
(31st period) (32nd period) (33rd period) (34th period)

22.0

13.0

(forecast)

28.00

26.0

(forecast)

15.0(forecast)

18.00

Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024
(31st period) (32nd period) (33rd period) (34th period)*‌The Company conducted a 2-for-1 stock split of common shares on September 1, 2021. The bar chart above reflects
the assumption that the stock-split was conducted at the beginning of the fiscal year ended December 2021.

(unit: million yen)

Consolidated
Balance Sheet(Summary)

Total assets 21,757

1 Total assets 23,491
2 Interest-bearing liabilities 1,990

Interest-bearing liabilities 2,152(Remaining loan period: 12 years)(Remaining loan period: 13 years)

Cash and deposits

12,804

Real estate for sale

1,751Real estate for rent

2,271

Other assets

further promote standardization of consulting through such digitalization,and build a human resource training system in order to expedite such)

Net profit
per share

services that meet various needs. For example, in regional revitalization
consulting, inquiries from local governments have increased following theDeveloping an environment that supports
consultants by leveraging DX, AI and so forth

3,265
million yen

OperatingincomeIn addition to property and business succession consulting, we are creating

We believe that it is important that consultants possess interpersonal skills

2

36,098million yen(Up 0.4% year-on-year

undertaking the four initiatives given below to reach our goals by fiscal year
2024, the final year of the Third Medium-Term Management Plan.

A o y a m a
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Highlights of Consolidated Business Results

4,931Interest-bearing
liabilities otherthan the above

5,981

2 Interest-bearing

Cash and deposits

14,696

6,181

Other liabilities

Other liabilities

5,303

liabilities otherthan the above

Real estate for sale

5,734

1,677

Net assets

8,320

Real estate for rent

3 Net assets

Other assets

Equity ratio
40.4%

2,171

Equity ratio

38.0%

End of fiscal year 2022

4,945

9,584

End of fiscal year 2023

1 Total assets

Total assets amounted to ¥23,491 million,up ¥1,733 million from the end of theprevious period mainly due to an increasein cash and deposits.
2 Interest-bearing liabilities

Interest-bearing liabilities amounted to¥8,171 million, up ¥37 million from theend of the previous period due to anincrease in short-term loans payable, etc.
3 Net assets

Net assets grew by ¥1,264 million fromthe end of the previous period to reach¥9,584 million mainly due to an increase
in retained earnings.
3

A o y a m a
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Business Topics

TSURUGA POLT SQUARE ‘otta’ won the Minister of Land,
Infrastructure, Transport and Tourism Award.

— Recognition of realization of a sustainable system for regional revitalization and public-private partnerships —Our second regional revitalization project “TSURUGA POLT SQUARE‘otta’” in the Tsuruga Station Western District Land Usage Enterprisereceived the Minister of Land, Infrastructure, Transport and Tourism
Award at the “2023 (20th) Land Utilization Model Award” organizedby the Institute for Future Urban Development (supported by the
Ministry of Land, Infrastructure, Transport, and Tourism).
The award ceremony was held in October, 2023, and this project,which aimed at providing regional revitalization for regional cities,
was highly praised for realizing effective utilization of highly
attractive land and establishing a sustainable system of publicprivate partnership.

Hikaru Aizawa, our consultant,
has spoken at major events,

including the “Nikkei Real Estate Investment Fair,” the“Inheritance and Real Estate Utilization Conference”
organized by Yomiuri Shimbun, among others.

Hikaru Aizawa, our consultant, gave lectures at major events such as the“Nikkei Real Estate Investment Fair 2023 Tokyo” held in October 2023, the“Landlord Festa Autumn 2023” organized by Owner’s Style, and the“Inheritance and Real Estate Utilization Conference” hosted by theBusiness Bureau of Yomiuri Shimbun in November 2023. We provided
information based on the unique insights of a property consultant who isat the forefront of trends, such as the three new precepts in choosing realestate, how to select high-profit and fail-proof real estate, and examples
related to inheritance.

Consultant of the Company

Hikaru Aizawa

Hikaru Aizawa is a first-classfinancial planning technician,senior private banker, certified
real estate consulting master, andlicensed real estate transaction
specialist.

He is the author of “Retaining
Assets and Wishes.”

Scene at the award ceremony showing representatives of the Company and Tsuruga City

How “TSURUGA POLT SQUARE ‘otta’” contributes to“sustainable town development” in Fukui Prefecture
Real Estate Specified Joint Enterprise“TSURUGA POLT SQUARE ‘otta,’” which had its grand opening in September
2022, was the second regional revitalization project undertaken by theCompany. It is located in front of the Hokuriku Shinkansen Tsuruga Station(scheduled to open in 2024), which serves as an important gateway with
Kanazawa and Tokyo in one direction and the Kansai region and Chukyo region
in the other. At “otta,” there are facilities including “HOTEL GRANBINARIOTSURUGA,” a high-grade lodging option catering to long-term stays byinternational visitors for business or travel, and to VIPs from both Japan andabroad, as well as restaurants, retail stores, child-rearing support facilities,“TSURUGA BOOKS & COMMONS CHIENAMIKI,” a public facility for education
and awareness, stocked with a rich selection of books, and “Station West Plaza
Park,” a place for relaxation and social interaction.
In Tsuruga City, there has been a longstanding consideration to create hubsthat generate interaction and excitement among visitors and citizens. It was
through a publicly offered proposal in 2018 that the project “otta,” a Tsuruga
Station Western District Land Usage Enterprise came into existence.

voluntary partnership forinvestment-type )( monetary

Formed partnerships for four new properties in Tokyo

The Company’s key consulting product, the real estate small-lot product“ADVANTAGE CLUB,” has received numerous applications. We newly formed
voluntary partnerships “Kioicho” in August 2023, “Azabu Juban” in September
2023, “Kagurazaka Dori” in November, and “Shibuya Bunkamura Dori” inDecember 2023. Each of the properties of these voluntary partnerships is locatedin an attractive area, either being actively redeveloped in recent years, or known
as a popular upscale residential area. ADVANTAGE CLUB engages in regular
product formation to meet the diverse needs of our customers.

ADVANTAGE CLUB® since 2002

(as of December 31, 2023)

71

Cumulative number of partnerships¥ 141.21 billion

Cumulative amounts

5,769

Total partnership members

Trends of cumulative amounts of ADVANTAGE CLUB

Inside “TSURUGABOOKS & COMMONSCHIENAMIKI”(unit: billions of yen)

Existing

141.21116.77
72.03

Realizing “town development for sustainable living”
The demand for station-front redevelopment projects and urban redevelopment projects, especially in regional cities, isincreasing. What the Company can do as a private enterprise from a neutral standpoint, is to create a system that can continue
as a profitable business and operate the business stably over the long term. We will continue to value the thoughts of local
governments and investors while leveraging our past experiences to realize “town development for sustainable living.”

4

28.8

Amount of newly developed partnerships

9.28
AD Kioicho: Kioicho435

AD Azabu Juban: AZABU AD Kagurazaka Dori:AD Shibuya Bunkamura
JUBAN BUSINESS CUBE-S DEAR LIFE KAGURAZAKA Dori: J + R Building

End of 2020

88.23
16.25

End of 2021

24.44

28.49

End of 2022

End of 2023

End of 2024
(forecast)5

A o y a m a
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Participationin activesocialcontribution
activities

The Group is actively involved in social contribution activities aimed at solving social issues. We
provide material support to organizations tackling social issues such as “supporting the realizationof a society with zero pet euthanasia” and “support for children’s cafeterias.” In addition, ouremployees also participate in these activities as volunteers. Furthermore, this year we have also
started “local cleaning activities” as volunteers. We will continue to provide donations and enabling
employees to develop their humanity by having them participate in such activities.
We participated inmowing the lawn at
the dog run of therearing and training
center of HUMANIN
FOUNDATION, which
engages in the rearing
and training of rescued
dogs.

Shareholder incentives
Shareholder incentive
item numberA

We participated in theactivities of “Nakanaka
ii Kai,” an organizationthat runs children’s
cafeterias, providing
support in the provisionof snack assortments
and assistance inmaking boxed lunches.

Shareholders recorded in the shareholder register and holding at least 30,000 shares as of December 31, 2023, arepresented with one of the following items.

イメージ

Shareholder incentive
item number

B

TsuruTonTan UDON NOODLE

Ukai
special select beef
(for sukiyaki)
worth 30,000 yen(https://www.ukai.co.jp) (excluding Atelier UKAI Takashimaya Kyoto store, Atelier UKAI Takashimaya
Osaka store).

Japan 93 bases(as of January 1, 2024)

The “AZN nationwide network” refers to a structurethat connects accounting offices and tax
accounting firms throughout Japan, and provides
the Group’s comprehensive property consulting
services and the eight strategic individual services
throughout Japan.

Hokkaido/Tohoku

10 bases

18 bases
Chugoku/Shikoku

13 bases

イメージ● The UKAI Group common meal certificate may be used at each shop listed on the UKAI web site

● Number of bases of AZN nationwide network member

Chubu(1,000 yen x 30 certificates)

Shareholder incentive
item number

Providing premium-quality services fromdomestic and overseas networks

C

Facility use tickets from the Kato Pleasure Group
30,000 yen (1,000 yen x 30 tickets)

The UKAI Group
common mealcertificate
30,000 yen

A o y a m a
Z a i s a n
N e t w o r k s

AZN network

Plaiga TOKYOFUFU Karuizawa, Wind in the Sunshine [Opened December 24, 2023]

Kanto

33 bases
FUFU Kyu-Karuizawa, Restful Forest [Opened December 24, 2023]

TWIN-LINE HOTEL YANBARU OKINAWA JAPAN● Facility use tickets from the Kato Pleasure Group may be used at all facilities listed on the management facility

page of the Kato Pleasure Group web site (https://www.kpg.gr.jp/store/). (Limited to management facilities
within Japan except for the online shop) The valid period for facility use tickets from the Kato Pleasure Group issix months from the issue date. Please bear this in mind when making plans.

Kinki

9 bases

Participated in the IR Seminar for Individual Investors
In November 2023, we participated in the IR Seminar for Individual Investors held by logmi Finance. At the seminar,
which was streamed as a Zoom webinar, we gave a speech in which we outlined our company and discussed theoutlook for the future. Explanations were provided on topics such as “strengthening recruitment to meet the expansionof the real estate and inheritance markets and the increase in the number of clients. Through the implementation ofsuch briefings, we will further enhance our IR activities for individual investors.
IR Seminar for Individual Investors
6

Kyushu/Okinawa

10 bases7

Corporate Data (as of December 31, 2023)

Executives (as of March 28, 2024)

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
Tel. +81-3-6439-5800

Director, Managing Executive Officer

Masayuki Yagi

Director, Managing Executive Officer

Takeshi Matsuura

Incorporated

September 17, 1991

Director, Managing Executive Officer

Takaomi Ogawa

Capital stock

1,210.99 million yen

Director, Managing Executive Officer

Shintaro HashibaLines of businessIndividual property consulting
Business succession consulting
Real estate solutions consulting

Director, Executive Officer

Shinji Shimane

Director

Michihiro Nagasaka

Number of
employees

298 (group consolidated)

Outside Director

Haruo Shimada

Outside Director

Keiji Watanabe

Outside Director

Madoka Mori

Consolidated
subsidiaries

Aoyama Estate Co., Ltd.,
Nihon Shisan Soken 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 4 other companies

Outside Auditor (standing)

Hiroyuki Fujita

AuditorHisao Nakatsuka

Outside Auditor

Hiroaki Rokugawa

Stock Overview (as of December 31, 2023)

Notes for Shareholder

Number of shares in issue … …… 24,520,859
Number of shareholders … …………… 11,223
Major Shareholders (Top 10)
Name

Shares held Shareholding ratio

Masazumi Hasumi

2,508,976

10.32

Nihon M&A Center Inc.

1,000,000

4.11

Custody Bank of Japan, Ltd. (trust
account)

901,100

3.70

Custody Bank of Japan, Ltd. (pension
trust account)

554,700

2.28

Capital Asset Planning, Inc.

400,000

1.64

NORTHERN TRUST CO. (AVFC) RE
UKAI AIF CLIENTS NON LENDING
10PCT TREATY ACCOUNT

340,000

1.39

GOLDMAN SACHS INTERNATIONAL

331,800

1.36

Aoyama Zaisan Networks Employees’
Shareholding Association

322,900

1.32

BNYM SA/NV FOR BNYM FOR BNYM
GCM CLIENT ACCTS M ILM FE

303,180

1.24

NOMURA PB NOMINEES LIMITEDOMNIBUS – MARGIN (CASH BP)

277,800

1.14

Fiscal year
Base date for the determinationof shareholders with year-end
dividend entitlements
Base date for the determinationof shareholders with interim
dividend entitlements
General meeting ofshareholders
Administrator of theshareholder registry/Accountmanagement institution for
special accountContact

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
1-1, Nikko-cho, Fuchu-shi, Tokyo
Tel. 0120-232-711 (toll-free, Japan only)
Mailing address: P.O. Box 29, Shin-Tokyo
Post Office 137-8081
Mitsubishi UFJ Trust and Banking
Corporation, Stock Transfer Agency
Department
TSE Standard Market
To be announced on the Company’s
website(For reference)
1. ‌Shareholders’ address changes, repurchase requests, and such other procedures, as a rule, arefilled 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 reminded that application filings
cannot be made with the administrator of shareholder registry (Mitsubishi UFJ Trust and Banking
Corporation).
2. ‌Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust and Banking
Corporation, Head Office Branch.