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Interim Report(34 th period)

January 1 to June 30, 2024

Aoyama Zaisan Networks Company Limited
Securities Code: 8929

To Our Shareholders
the possibility of negative impacts on Japan.
There are more and more wealthy people
thinking that they need to be ready for any
eventuality and make some kind of
preparations.

President

Masazumi Hasumi
Although the world had suffered from the
COVID-19 pandemic for several years, there is
now a sense that society is finally returning tonormal.
It seems that more people are feeling optimistic
about the future of the Japanese economy assymbolized by the Nikkei Stock Averagereaching a new all-time high.
Against a backdrop of rising asset prices, needs
related to property succession, businesssuccession, and asset management among
wealthy people are increasing.
All of the baby boomers will reach the age of
75 in 2024.
The next 10 to 15 years will be the peak period.
In terms of business succession, there has
been a noticeable diversification of needs,
along with an increase in the number ofconsultations.
More and more owners are opting for M&A
with third parties due to the difficulty offinding successors.
On a global level, various destabilizing factors
are spreading and uncertainty is definitely
growing, so we need to continue to monitor

2

In the Third Medium-Term Management Plan,
which ends in fiscal year 2024, we positioned
these three years as a period for expanded
growth.
Our business performance has been favorable
due in part to the favorable businessenvironment.
Property consulting revenue has been growing,with the increase in transaction unit prices
being a major factor, alongside the improved
capabilities of individual consultants.
In terms of strengthening our strategic
individual services, eight services, including
the real estate joint ownership scheme“ADVANTAGE CLUB,” “purchase consulting”
and “land effective utilization consulting,”
which are comprehensive support fromselection to purchase, administration andmanagement after purchase, and sale of realestate, have gradually grown and contributed
to earnings.
We anticipate further growth in the future.
The Company has set the vision “to become aleader in business for wealthy people.”
We aim to build long-term trust with wealthypeople and provide optimal advice by taking acomprehensive view of their entire property.
We consult with the most clients and help
them solve the most problems in Japan. We
aspire to be a partner for customers as a“wealth advisor.”
It is essential to improve productivity toachieve this vision, but there are some issues
that need to be addressed.
First, we need to increase the number ofconsultants who can handle increasingly
diverse and complex cases.
Broad knowledge is required when it comesto property and business succession.
The needs of customers are becoming morediverse and complex.
We need to increase the number of consultants
who can be trusted to handle any type of case.

Highlights of Consolidated Business Results
Next is the further development of relationships
with customers.
If we can build a relationship where customers
feel comfortable consulting with us about
anything related to their property, they will
likely contact us immediately when they arefacing an issue.
We need to build, maintain, and strengthensuch relationships with customers.
Finally is marketing.
Referrals from financial institutions are
extremely important as a gateway to accessing
wealthy people.
While we will continue to strengthen our ties
with financial institutions, as another approach
we have actively engaged in direct marketing
to individual wealthy customers starting in
2023, and we are beginning to make progress
in utilizing data.
In 2024, we expanded our focus to include
corporate owners, and worked to establish moreconnections with a broader range of customers.
“Developing humanity,” “developing anenvironment that supports consultants,” and“creating a workplace that is easy to work in andfulfilling” are essential to achieve our vision.
We will develop an environment that supports
consultants by incorporating humanity
development into our education programs
and promoting DX, including the use of AI.
In addition, we believe that the success of
women is a key factor in creating a workplacethat is easy to work in and fulfilling.
We had our first female Executive Officer in 2024.
We expect that she will serve as a role model for
our female employees.
In addition, we have welcomed a female Outside
Director with extensive knowledge in areas
including health management.
We believe that creating a workplace from awoman’s perspective is also important forstrengthening governance.
As president, I will continue to work to provide
leadership to ensure that the entire organization
can move forward without losing focus.

Aoyama Zaisan Networks

Net sales totaled ¥20,994 million (compared to ¥14,039 million in the same period of the previous year), with bothproperty consulting and real estate transactions significantly higher year on year.
Operating income was ¥1,740 million (compared to ¥1,102 million in the same period of the previous year). Grossprofit increased due to a significant increase in business succession consulting, a particularly high-margin area ofproperty consulting.

Net sales

20,994
million yen(Up 49.5% year-on-year

InterimYear-end)
InterimYear-end(forecast)InterimYear-end(forecast)

2,629
24,213

61.22

91.82

84.81

20,994

11,91914,039

1,740
1,190

1,097

49.80

44.37
29.46

1,102

(forecast)

18.0yenInterimYear-end

69.82

1,856
20,232

Dividends
per share

)

3,500

3,265

49.80yen

Net profit
per share(Up 57.8% year-on-year

38,00035,952 36,098

1,740
million yen

Operatingincome

28.0
17.0

34.26
11.0

35.0
22.0

13.0

46.0

(forecast)

41.0
26.0

15.0

28.0

(forecast)

18.0

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

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

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

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

unit: million yen

unit: million yen

unit: yen

unit: yen(unit: million yen)

Consolidated
Balance Sheet(Summary)

Total assets 23,491

1 Total assets 25,839
2 Interest-bearing liabilities 1,909(Remaining loan period: 11 years)

Interest-bearing liabilities 1,990(Remaining loan period: 12 years)

Interest-bearing
liabilities otherthan the above
Cash and deposits

14,696

6,181

2

Cash and deposits

16,571

8,220

Other liabilities

Other liabilities
Real estate for saleInterest-bearing
liabilities otherthan the above

5,390

5,734

1,677

Real estate for rent

2,171

Other assets

4,945

Net assets

9,584

Real estate for sale

4,963

Equity ratio

40.4%

End of fiscal year 2023

Other assets

4,304

3 Net assets

10,318Equity ratio

39.7%

End of June 2024

1 Total assets

Total assets amounted to ¥25,839 million,up ¥2,347 million from the end of theprevious period mainly due to an increase
in real estate for sale.
2 Interest-bearing liabilities

Interest-bearing liabilities amounted to¥10,130 million, up ¥1,958 million fromthe end of the previous period due to anincrease in short-term loans payable, etc.
3 Net assets

Net assets grew by ¥733 million from theend of the previous period to reach¥10,318 million mainly due to an increase
in retained earnings.

3

Business Topics
Business Topics

Special feature

Aoyama Zaisan Networks

Actively participated in and held seminar events

President Hasumi and our consultants spoke at major external seminars
We participated in large-scale external seminars continuing from the previous fiscal year.
The seminars were well received by those in attendance, as they provided easy-to-understand explanations of solutions to issues related tobusiness succession and the use of asset management companies, using case examples and our knowledge and expertise.
Nikkei Top Leader

Platinum Forum + 2024 Spring

Premium Rental Management Outlet Fair

In April 2024, Masazumi Hasumi took the stage at the“Platinum Forum 2024 Spring” sponsored by Nikkei Top
Leader and co-sponsored by the Company, and gave a lectureon the theme of “how a family business can successfully passon to the next generation.”
He provided clear explanations using examples on solutions
to business succession and successor issues faced by familybusiness owners.

In May 2024, our property consultant Hikaru Aizawa took thestage at the “Rental Management EXPO - Premium Rental
Management Outlet Fair,” and gave a lecture on the theme of“how to utilize asset management companies, the key toincreased profitability and inheritance measures.”He explained the effective use of asset management companies
with examples of failures and successes, with a focus on people
who want to protect their property and those who have not fully
utilized asset management companies.

Online seminars provided on the topic
of “mental” and “physical” healthParticipated in the IR Seminar for Individual
Investors held by logmi Finance.

In June 2024, we held the 7th online seminar on the topic of“mental” and “physical” health.
In order to live happily in the age of 100, we focus on supporting
people in terms of “property,” and at the same time, we believethat “mental” and “physical” health are also important.
We invited Dr. Tomoko Mabuchi, an expert on food and medicine
who has appeared in numerous media articles, to give an online
seminar on the theme of “changing your life by changing yourfood.”She spoke about the secrets to extending ahealthy lifespan, which has been gaining interest
recently.

In April 2024, we participated in the IR Seminar for Individual
Investors held by logmi Finance.
The seminar was held in a hybrid format combining online and inperson participation, and included a corporate overview, external
environment and future initiatives, and shareholder returns, inorder to inform individual investors about the attractiveness of theCompany as an investment destination.
After the presentation, the seminar was followed by a Q&A session
with the individual investors in attendance, which
provided a valuable opportunity to communicate
directly with them, as we actively exchanged opinions
on the outlook for the business environment,
recruitment of human resources, productivity
improvement, and other topics.

Online seminar on the topic of “mental” and “physical” health4

Rental Management EXPO -IR Seminar for Individual Investors

Establishment of DX Promotion Office
On April 1, we established “DX Promotion Office” to achieve
the stable growth of our consulting business, which is thecore of our business, by improving the environment tosupport consultants through “business process reform” and“data base improvement” by leveraging DX, AI, and othertechnologies.
With the establishment of DX Promotion Office, we welcomed
Masanori Miura, who has a proven track record of achieving
steady business growth as a member of top management byimproving operational efficiency through DX, promoting
scientific approaches, and improving operational quality, as
General Manager.

Developing an environment that supports consultants by leveraging DX and AI
Data design

Visualization and database creation for information (various rules
such as tax laws, case studies, and data) necessary for consulting,by leveraging DX and AI

Process designStandardization of consulting methods and business processes byleveraging DX and AI

Training

The above two developments will greatly contribute to the training of
consultants

Real Estate Specified Joint Enterprisevoluntary partnership forinvestment-type )( monetary

Formed partnerships for five 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“Kudan Chidorigafuchi,” “Hamamatsucho,” “Kojimachi,” “Iidabashi Ekimae,” and“Shibuya Scramble Crossing” in the first half of 2024.
We plan to form partnerships of ¥28.8 billion in fiscal year 2024.
We formed partnerships of ¥15.61 billion as of the end of June 2024, and are making
steady progress.

ADVANTAGE CLUB® since 2002
(as of June 30, 2024)

76

Cumulative number of partnerships¥ 156.82 billion

Cumulative amounts

6,505

Total partnership members

Trends of cumulative amounts of ADVANTAGE CLUB
(unit: billions of yen)

Existing

28.8

Amount of newly developed partnerships

141.21116.77
Kudan
Chidorigafuch:
Pacific Square
Kudanminami

Hamamatsucho:

Kojimachi:

Shibuya Scramble
Iidabashi Ekimae:
Crossing:

Orchid Place
Hamamatsucho

MK Kojimachi
Building

LEO Iidabashi

VIVEL Shibuya

Formed in April 2024
Total amount of funding:

Formed in May 2024
Total amount of funding:

Formed in June 2024
Total amount of funding:

Formed in February 2024 Formed in March 2024
Total amount of funding: Total amount of funding:¥2.98 billion¥2.87billion¥2.9 billion¥2.36 billion¥4.5 billion

72.03
9.28

End of 2020

88.28
16.25

End of 2021

24.44

28.49

End of 2022

End of 2023

End of 2024
(forecast)5

Aoyama Zaisan Networks

Shareholder incentives

Aoyama Zaisan Networks

The Company provides shareholder benefits based on the following criteria.
We have recently expanded the range of products that shareholders can choose from for the interim shareholder benefits with a record date of the last day of June.
For year-end special benefits with a record date of the last day of December, we have added new special benefits for shareholders who hold 1,000 shares or more.

Initiatives for a better working environment

Shareholders as of June 30 (shareholders recorded in the shareholder register as of June 30)

Certified as a “Health & Productivity Management Outstanding Organization”

Acquired 2-star “Eruboshi” Certification

To promote the health of its employees, the Group has been implementing avariety of initiatives, including health seminars for employees led by specialists,and has also been promoting health management by establishing structures
such as the establishment of the Sustainability Committee in February 2022.
As part of these efforts, we entered
the Certified Health & Productivity
Management Outstanding Organizations
Recognition Program and have beencertified as a 2024 Health & Productivity
Management Outstanding Organization(Large Enterprise Category).
We will continue to implement healthmanagement initiatives.

The “Eruboshi Certification” is a system to certify companies with excellent
performance in promoting the active participation of women, based on the Act on
the Promotion of Women’s Active Engagement in Professional Life.
We have recently announced our entry in the “Database on Promotion of Women’sParticipation and Advancement in the Workplace,”and received a two-star certification, the secondof three levels, in particular for our support forcareer development, including the ratio of female
managers, human resources development, andinternal recruitment systems.
We will continue to create a workplace that is easy
for all female employees to work and play an activerole with the aim of achieving three-star certification.

2,000 shares or more

Shareholders who hold 10,000 shares or more continuously for over two years

One item worth 3,000 yen, chosen from 16 items or “donations to initiative for completely
eliminating pet euthanasia” or “donations to ‘kodomo shokudo’ cafeterias for children”

One additional item worth 20,000 yen
The UKAI Group common meal certificate(1,000 yen x 20 certificates)

Ukai special select beef (for sukiyaki)

Ukai special select beef (for shabu shabu)

Ukai special select beef (for steak)Social contribution activities
Support activities towards a society thatcompletely eliminates pet euthanasia
Various organizations and individuals, including government
agencies, are working towards a society that completely
eliminates pet euthanasia.
As part of the Group’s support activities, we participated inmowing the lawn at the dog run of the rearing and training
center of “HUMANIN FOUNDATION,” which engages in therearing and training of rescued dogs.

Support activities for “kodomo shokudo” cafeterias for children“Kodomo shokudo” cafeterias for children provide
meals to children facing economic hardship or those
who do not have access to proper meals.
The Group’s employees participated in the activities
of “Nakanaka ii kai,” one of the organizations that run
these cafeterias.
We provided support for packing snacks and assistingin the preparation of lunch boxes.

Local cleaning activities
With the aim of improving teamwork and developing
humanity through regional contributions, we haveregistered for the “Minato Ward Adopt Program”
and conduct monthly cleaning in our designatedarea around the Company.
This activity also stimulates communication withneighboring companies and local residents.

6

Shareholders as of December 31 (shareholders recorded in the shareholder register as of December 31)
1,000 shares or moreNEW
QUO Card worth

2,000 yen

AZN network

30,000 shares or more
One additional item chosen from the following
The UKAI Group common meal certificate (worth●

Ukai special select beef (worth

93 bases(as of July 1, 2024)●

Facility use tickets from the Kato Pleasure Group(worth30,000 yen)

The “AZN nationwide network” refers to a structure that connects accounting offices and tax
accounting firms throughout Japan, and provides the Company’s services throughout Japan.

● Number of bases of AZN nationwide network memberJapan

30,000 yen)
30,000 yen)●

Hokkaido/Tohoku  
Kanto  Chubu  10 bases  33 bases  17 bases  

Kinki  Chugoku/Shikoku  
Kyushu/Okinawa  

9 bases  13 bases  11 bases  

7Corporate Data (as of June 30, 2024)

Executives (as of June 30, 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

1,235.17 million yen

Director, Executive Officer

Shinji Shimane

Lines of businessIndividual property consulting
Business succession consulting
Real estate solutions consulting

Director

Michihiro Nagasaka

Number of
employees

Outside Director

Haruo Shimada

318 (group consolidated)

Outside Director

Keiji Watanabe

Outside Director

Madoka Mori

Consolidated
subsidiaries

Nihon Shisan Soken Co., Ltd.,
Aoyama Estate 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 June 30, 2024)

Notes for Shareholder

Number of shares in issue ………… 24,561,059
Number of shareholders …… …………… 10,994
Major Shareholders (Top 10)
Name

Shares held Shareholding ratio

Masazumi Hasumi

2,515,366

10.32

AVI JAPAN OPPORTUNITY TRUST PLC

1,231,000

5.05

Nihon M&A Center Inc.

1,000,000

4.10

Custody Bank of Japan, Ltd. (trust
account)

663,300

2.72

The Master Trust Bank of Japan, Ltd.
(trust account)

594,100

2.43

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

585,400

2.40

Capital Asset Planning, Inc.

400,000

1.64

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

370,389

1.52

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

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

340,000

1.39

Aoyama Zaisan Networks Employees’
Shareholding Association

301,900

1.23

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.