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 Three Months Ended March 31, 2024
Fiscal Year Ending December 31, 2024

Securities Code ：8929
Aoyama Zaisan Networks Co., Ltd.
May 14, 2024
© 2024 Aoyama Zaisan Networks GroupThe ideal way of doing business Aoyama Zaisan Networks is aiming for:“To be a leading expert on the business for the wealthy”
Clients

Consultants

Long-term

trusting relationship

Wealthy people who own
land

Business owners
Financial asset owners

Wealth advisors who provide advice on a holistic view of various assets.
Client partners who can consult more than anyone else and help clients solve their problems.

© 2024 Aoyama Zaisan Networks Group1

Contents

1

Financial Results for the Three Months Ended March 31, 2024

２ Shareholder Return Policy
3

Appendix© 2024 Aoyama Zaisan Networks Group2

Section 1

Financial Results for the Three Months Ended March 31, 2024
 Highlights of Consolidated Financial Results
 Actual PL ー In Case of Adopting the Net Amount Method
 Breakdown of Changes in Operating Profit
 Changes in Gross profits of Asset Consulting and Real EstateTransactions
 Changes in Net Sales of Asset Consulting
 Net Sales by Segment
 BS Highlights

Highlights of Consolidated Financial Results

・Both asset consulting and real estate transactions steadily increased,
and profits at all levels significantly increased.
Unit：Million yen© 2024 Aoyama Zaisan Networks Group4

Five-Year Changes in Consolidated Financial Results

Unit: Million yen© 2024 Aoyama Zaisan Networks Group5

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 a consulting firm.
We believe that this disclosure of actual conditions will provide useful information for investors.
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.
© 2024 Aoyama Zaisan Networks Group6

Breakdown of Changes in Operating Profit• Significant increase in gross profit (excluding personnel expenses) due tosignificant increase in sales of high-margin asset consulting services.

Uni: Million yen

Increase inpersonnel expenses Increase in selling, general▲82

and administrative expenses（excluding personnel
expenses▲66

467

FY2023
Q1

Increase in gross profit(excluding personnel expenses)

832

+514

FY2024
Q1© 2024 Aoyama Zaisan Networks Group7

Changes in Gross Profits of Asset Consulting and Real Estate Transactions■ Asset consulting
Unit: Million yen

975■ Real estate transactions
Unit: Million yen

645© 2024 Aoyama Zaisan Networks Group8

Changes in Asset Consulting Sales
Sales were significantly higher than the previous year due to a significant increase in businesssuccession sales.
Unit: Million yen

1,893

1,916
223

347

1,323
987

156

634

706

FY2020
1Q

1,437
481

1,354
316

702

240
384

532

570

FY2021
1Q

FY2022
1Q

797

FY2023
1Q

843

FY2024
1Q

Asset succession
Business succession

Product composition© 2024 Aoyama Zaisan Networks Group9

Financial Results by Sales Category
Asset Consulting

Real Estate Transactions

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.

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© 2024 Aoyama Zaisan Networks Group10

Asset Succession (for Individual Asset Owners)
Unit: Million yen
1,000
843
797

800
706

600

532

570

 Sales have increased in line with an increase in thenumber of clients.

400

200

0

FY20201Q

FY2021
1Q

FY2022
1Q

FY2023
1Q

FY2024
1Q© 2024 Aoyama Zaisan Networks Group11

Business Succession (for Business Owners)

Unit: Million yen

1,000

Succession to the family line Despite an increase in the number of projects
compared to the previous year, sales declined due
to a decrease in large one-shot orders.

987

800

600

702
12

634
788

 Significant increase due to the closing of large
projects.
423

400

384
176

200
104

0

94
FY20201Q

M&A (Third-party succession)

47
163

FY2021
1Q

Succesion to the family line

579

Business succession fund (Discontinuation of business)

240
7
14

 We expect to recover two investments this fiscal year.

217

Note that in FY2020, the costs of sales were 568 million
on sales of 788 million (actual sales: 220 million).

77
130
FY2022
1Q

M&A

110
FY2023
1Q

FY2024
1Q

Business succession fund© 2024 Aoyama Zaisan Networks Group12

Product Composition, etc.
Unit: Million yen
500

481

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

 Since the amount of ADVANTAGE CLUB compositionis almost the same as the previous year, fees are also at
the same level.

146

400

347
316

300

139

223

172

200

Other
113

100

155

335

102

177

175

FY2023
1Q

FY2024
1Q

109

0

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

52
FY20201Q

FY2021
1Q

AD Composition

FY2022
1Q

Other© 2024 Aoyama Zaisan Networks Group

13

Real Estate Transactions
Unit: Million yen
12,00011,213357

ADVANTAGE CLUB (Real estate transactions)

10,000 The same level as the previous year's composition
amount.

8,000

6,000

4,000

2,000

7,407
5,964
5,146

10,855

1,797

231

1,347

5,733

2,052
3,799

5,610

337

 Rental income was recorded when real estate otherthan ADVANTAGE CLUB was provided or whenreal estate was owned.

1,715

0

FY20201Q

FY2021
1Q

ADVANTAGE CLUBOther real estate transactions

FY2022
1Q

FY2023
1Q

FY2024
1Q

Other real estate transactions© 2024 Aoyama Zaisan Networks Group14

BS Highlights (Financial Strategies)[Basic policies] We always maintain a level of cash and cash equivalents to cover two years' worth of personnel costs and expenses (However,we set the DOE target at 10% level and continue to pay dividends in excess of costs of capital of approximately 8%). In addition, a commitmentline with a five-year term has already been established in preparation for the occurrence of any economic risk. We maintain negative net debt.
[Real estate for sale inventory policy] We will expand the composition of ADVANTAGE CLUB, but will continue our policy of completing therecruitment process in advance, composing ADVANTAGE CLUB on the same day as the purchase and settlement of real estate, and carrying no
inventory. There is no impact from the interest rate hike due to the Company's policy of not holding real estate inventory.
※ Real estate for sale and interest-bearing debt temporarily increased due to the March acquisition of real estate for sale for the composition of
ADVANTAGE CLUB Kojimachi, which was sold and repaid on April 26.

Total assets 23,491 million yen

Total assets 25,139 million yen
Interest-bearing liabilities
1,949
Residual borrowing period
11 yearsInterest-bearing liabilities
1,990
Residual borrowing period
12 years

Other than the above
Interest-bearing liabilities
6,181

Cash and deposits
14,696

Other than the above
Interest-bearing
liabilities
8,719

Cash and deposits
15,686

Other liabilities
5,734

Other liabilities
4,851(of which, the security deposit is(of which, the security deposit is2,595)

Real estate for sale 1,677
Real estate for rent
2,171
Other assets 4,945

2,740）

Real estate for sale 2,820
Net assets 9,584（ Equity ratio 40.4%）

End of FY2023

Real estate for rent
2,146
Other assets 4,486

Net assets 9,618（ Equity ratio 37.9%）

End of FY2024 Q1© 2024 Aoyama Zaisan Networks Group15

Section 2

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 Group17

Changes in Dividends

Dividends have already increased for 13 consecutive years.
We are aiming to increase dividends for（Unit : yen)

3.0

41.0

46.0

35.0

"14 consecutive years" this fiscal year.
25.0

26.5

28.0

26.0
22.0

2.5
19.5

16.5
15.0

Year-end dividendInterim dividend
7.5

5.0
2.5

3.25

3.75

2010

2011

2012

31.5%

86.1%

Dividend
payout ratio 64.1%

5.0

17.0

14.0
12.5

11.5

Commemorative dividend

9.5

9.0

7.5
6.5
4.0

28.0

5.5

7.0

8.5

10.0

11.0

13.0

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%

2022

15.0

18.0

2023

2024

48.3%

50.0%

※ 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.
© 2024 Aoyama Zaisan Networks Group18

Section 3

AppendixCompany Overview
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 December 31, 2023

No. ofemployees

298(Group) ※as of December 31, 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© 2024 Aoyama Zaisan Networks Group20

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.

2020s

2020

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

2021

Jan.

2021
2022

Established Aoyama Family Office Service Co., Ltd.

Sep. The 30th anniversary of establishment
Completed construction of TSURUGA POLT SQUARE otta, the second project for regionalAug.
development© 2024 Aoyama Zaisan Networks Group21

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© 2024 Aoyama Zaisan Networks Group22

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. 2,300

Monthly advisory
contract fee© 2023 Aoyama Zaisan Networks Group23

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© 2024 Aoyama Zaisan Networks Group24

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© 2024 Aoyama Zaisan Networks Group25

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

（Net sales: Million yen）

35,000Sublease, other

Resale of real estate

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

Operating profit

25,000〈Advantage Club〉
3,500

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

30,000Consulting real estate transactions

3,000

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

2,500

20,0002,000

15,0001,500

10,000

1,000

5,000

500

0

0

06年

07年

08年

09年

10年

11年

12年

13年

14年

15年

16年

17年

18年

19年

20年

21年

22年

23年

-4,000© 2024 Aoyama Zaisan Networks Group26

Changes in ROE and ROIC
ROE

Target: 20% level or higher

ROIC

Target: 10% level or higher
ROE

35.0%

ROIC

31.1%

30.0%
22.0%

25.0%

22.0%

23.2%

20.0%
15.0%

13.0%

12.7%

8.0%

10.0%

12.2%

12.9%

2022年度FY2022

2023年度FY2023

10.0%

5.0%
0.0%
2019年度FY20192020年度FY20202021年度FY202１© 2024 Aoyama Zaisan Networks Group27

Changes in number of clients, asset consulting sales, and sales per client
Sales per client

2.50 - 3.30 million yen

Average

Sales perclient3,333(Unit: thousand yen)

2,793

3,230

2,810

2,802

3,052

3,048
2,671

2,610

2,547

7,082

5,564

5,806

6,204
5,545

4,909

Sales ofasset
consulting(Unit: Million yen)

No. ofclients

3,928
2,780

3,123
2,450

2,366

967

847

735

1,752

1,398

2,377

2,076

1,905

1,823

(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(Planned)© 2024 Aoyama Zaisan Networks Group28

Changes in Number of Consultants and Clients

Unit: No. of persons

2,780

No. of consultants
No. of clients

2,377

1,752

1,823

1,905

2,076

1,398

735

847

967

97

102

120

134

148

167

FY2014FY2015FY2016FY2017FY2018FY2019170

183

FY2020

FY2021203

FY2022211

FY2023© 2024 Aoyama Zaisan Networks Group29

ADVANTAGE CLUB’s Reimbursement Results (Dissolution of association through sale of property)• Since 2010, we have comprehensively assessed real estate market trends, property
conditions and occupancy levels, etc. 31 properties are sold by resolution of theassociation members and the 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.)

GotandaRoppongi
3 chomeNIhonbashi

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 ％© 2024 Aoyama Zaisan Networks Group30

Publication of 3 books
・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

Released on November 11, 2021

Released on February 1, 2022

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

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

Publisher: Nikkei Business Publications, Inc.
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.

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".

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.
© 2024 Aoyama Zaisan Networks Group31

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

© 2024 Aoyama Zaisan Networks Group32

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.
© 2024 Aoyama Zaisan Networks Group